HomeMy WebLinkAboutRes 21-14 Accepting a Comprehensive Financial Report from Weaver & TidwellTOWN OF WESTLAKE
RESOLUTION NO.21-14
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, 2020.
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 ill the best
interest of the citizens of Westlake.
NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TO-;,V11;
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,
2020, 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.
SECTION 4: That this resolution shall become effective from and after its date of
passage.
Resolution 21-14
Page 1 of 2
PASSED AND .APPROVED ON THIS 26"' DAY OFAPRIL 2021.
ATTEST:
1�-'41
Tod Wood, Toy Secretary
APPROVED AS TO FORM:
L. Stanton Lowry, Town Attorney
Laura Wheat, Mayor
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Amanda DeGan, Town Manager
Resolution 21-11
Page 2 of 2
weaver
Assurance • inx • Advisory
Independent Auditor's Report on Internal Control Over Financial
Reporting and on Compliance and Other Matters Based on an Audit of
Financial Statements Performed in Accordance with
Government Auditing Standards
The Honorable Mayor and
Members of the Town Council
Town of Westlake, Texas
We have audited, in accordance with the 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, the 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, Texas
(the Town), as of and for the year ended September 30, 2020, and the related notes to the financial
statements, which collectively comprise the Town's basic financial statements, and have issued our
report thereon dated April 20, 2021.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Town's internal
control over financial reporting (internal control) to determine the audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial statements,
but not for the purpose of expressing an opinion on the effectiveness of the Town's internal control.
Accordingly, we do not express an opinion on the effectiveness of the Town's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control, such that there is a reasonable possibility that a material
misstatement of the entity's financial statements will not be prevented, or detected and corrected on a
timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control
that is less severe than a material weakness, yet important enough to merit attention by those charged
with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Town's financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect
on the determination of financial statement amounts.
However, providing an opinion on compliance with those provisions was not an objective of our audit,
and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of
noncompliance or other matters that are required to be reported under Government Auditing
Standards.
Weaver and Tidwell, L.L.P.
2300 North Field Street, Suite 1000 1 Dallas, Texas 75201
Main: 972.490.1970
CPAs AND ADVISORS I WEAVER.COM
The Honorable Mayor and
Members of the Town Council
Town of Westlake, Texas
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
Town's internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the Town's internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
WEAVER AND TIDWELL, L.L.P.
Dallas, Texas
April 20, 2021
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Resolution 21-14 - Exhibit "A"
Town of Westlake, Texas
Comprehensive Annual Financial Report
Fiscal Year Ended September 30, 2020
Prepared by:
Town of Westlake
Finance Department
1500 Solana Blvd, Suite 7200
Westlake, Texas 76262
Town of Westlake
Consolidated Annual Financial Report
For the Fiscal Year Ended September 30, 2020
Table of Contents
i
PageExhibit
Introductory Section
Letter of Transmittal iii
GFOA Certificate of Achievement xi
Or ganization Chart xii
Town Officials xiv
Financial Section
Independent Auditor’s Report 3
Management's Discussion and Analysis 9
Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Position 23 A-1
Statement of Activities 24 A-2
Fund Financial Statements
Governmental Funds Financial Statements
Balance Sheet 26 A-3
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position 28 A-4
Statement of Revenues, Expenditures, and Changes in Fund Balances 30 A-5
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities 32 A-6
Proprietary Funds Financial Statements
Statement of Net Position 33 A-7
Statement of Revenues, Expenses, and Changes in Net Position 34 A-8
Statement of Cash Flows 35 A-9
Fiduciary Funds Financial Statements
Statement of Fiduciary Net Position 36 A-10
Discretely Presented Component Units Financial Statements
Combining Statement of Net Position 37 A-11
Combining Statement of Activities 38 A-12
Notes to the Basic Financial Statements 41
Required Supplementary Information
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual - General Fund 91 B-1
Schedule of Revenues, Expentitures and Changes in Fund Balance -
Budget and Actual - Westlake Academy 92 B-2
Notes to Budgetary Comparison Schedules 93
Schedule of Net Pension Liability and Related Ratios - TMRS Pension Plan 94 B-3
Schedule of Pension Contributions - TMRS Pension Plan 95 B-4
Schedule of Academy's Proportionate Share of Net Pension Liability - TRS Pension Plan 96 B-5
Schedule of Pension Contributions - TRS Pension Plan 97 B-6
Schedule of Changes in the Total OPEB Liability and Related Ratios - TMRS OPEB Plan 98 B-7
Schedule of OPEB Contributions - TMRS OPEB Plan 99 B-8
Schedule of Academy's Proportionate Share of Net OPEB Liability - TRS Care Plan 100 B-9
Schedule of OPEB Contributions - TRS Care Plan 101 B-10
Town of Westlake
Consolidated Annual Financial Report
For the Fiscal Year Ended September 30, 2020
Table of Contents – Continued
ii
PageExhibit
Combining and Individual Fund Statements and Schedules
Maj or Governmental Funds
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual - Debt Service Fund 104 C-1
Nonmaj or Governmental Funds
Combining Balance Sheet 106 C-2
Combining Statement of Revenues, Expenditures, and Changes in Fund Balance 107 C-3
Nonmaj or Special Revenue Funds
Budgetary Comparison Schedules
Visitors Association Fund 108 C-4
Lone Star Public Facilities Corporation Fund 109 C-5
Economic Development Fund 110 C-6
4B Economic Development Corporation Fund 111 C-7
Agency Funds
Statement of Changes in Assets and Liabilities - PID Agency Fund 113 C-8
Statistical Section
Net Position By Component 117 S-1
Changes in Net Position 118 S-2
Fund Balances, Governmental Funds 120 S-3
Changes in Fund Balances, Governmental Funds 121 S-4
Assessed Value and Estimated Actual Value of Taxable Propert y 123 S-5
Principal Property Tax Payers 124 S-6
Property Tax Levies and Collections 125 S-7
Direct and Overlapping Property Tax Rates 126 S-8
Taxable Sales by Industry Type 127 S-9
Ratios of General Bonded Debt Outstanding 128 S-10
Ratios of Outstanding Debt by Type 129 S-11
Direct and Overlapping Governmental Activities Debt 130 S-12
Demographic and Economic Statistics 131 S-13
Principal Employers 132 S-14
Full-Time Equivalent Town Government Employees by Function/Program 133 S-15
Operating Indicators by Function/Program 134 S-16
Capital Asset Statistics by Function/Program 135 S-17
1500 Solana Blvd, Building 7. Suite 7200 Westlake, Texas 76262
Metro: 817-430-0941 Fax: 817-430-1812 www.westlake-tx.org
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April 20, 2021
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
for the Town of Westlake, Texas for the fiscal year ended September 30, 2020, 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 an absolute, assurance that the financial statements will be free from material
misstatements. As management, we assert that this financial report is complete and reliable in all material
respects to the best of our knowledge and belief.
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, 2020, 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, 2020, were fairly presented in conformity with GAAP.
The independent auditors' report is presented as the first component of the financial section of this report.
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 and is generally presented on a multi-year basis.
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Profile of the Town
Westlake is certainly distinctive by design. As a result of this intentional design, our community 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 Dallas-Fort Worth (DFW) Metroplex, Westlake is designated as both a Platinum Level
Scenic City and a Tree City USA.
Extraordinary residential developments and architecturally vibrant corporate campuses find harmony
among our meandering roads and trails, lined with native oaks and stone walls. Westlake is a leader 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 community where
hospitality finds its home. Westlake is family-friendly, welcoming, fully involved and invested in our rich
heritage, with a vibrant present and sustainable future.
Ideally located minutes from downtown Fort Worth, its Alliance Airport and the Dallas/Fort Worth
International Airport, the Town of Westlake is home to several prestigious residential communities,
Fortune 500 companies, and corporate headquarters, all of which possess a unique character and charm.
There is a common ideal shared by our corporate and individual residents of support for the existing
character and charm of the Westlake community as well as a commitment to excellence in new
development.
The Town geographically lies in both northeast Tarrant County and southern Denton County and may be
conveniently accessed by several major thoroughfares, including SH 114, SH 170 and US 377. Westlake
occupies approximately seven (7) square miles and serves a population of approximately 1,664. In 2020,
the average size of new home construction was 11,469 square feet, with an average estimated construction
cost of $2.85 million.
Westlake, 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
which the primary government is financially accountable. The following entities are considered blended
component units:
Lone Star Public Facilities Corporation is a Texas nonprofit corporation that acts on behalf of the Town
to further the public purposes under the Public Facilities Corporation Act, as it's duly constituted authority
and instrumentality. The board of directors, appointed by the Town's governing body, is comprised of
seven members, of whom five must be members of the Town's governing body.
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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 (7) persons appointed by the members of the Town Council. Four
of the members of the board of directors are members of the Town Council.
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
890 students in FY 19-20 and serves Kindergarten thru 12th grade. The Academy graduated their first
class in FY 09-10. The Board consists of six (6) trustees, appointed by the Town's governing body.
Currently, all members of the Academy Board 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
Westlake's value proposition is found in the excellent municipal and academic services that are provided
to our residents – all at an exceptional price! Our community has high expectations for service delivery –
both in accessibility, responsiveness, financial stewardship, amenities, distinctive developments, open
spaces and education.
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
Coronavirus (COVID-19)
The coronavirus pandemic has cast a large shadow over the Town of Westlake's economic outlook and
our country’s as a whole. The United States' economic downturn was unprecedented as local, state and
federal leaders worked through the impacts caused by the necessary actions designed to suppress COVID-
19 transmission. The Town moved to increase their established conservative approach during this time
and proceeded with cost-saving adjustments that included:
Deeper examination of budget expenditures;
No new staff requests;
Deferred transfers to conduit funds; and
Delayed capital improvement projects.
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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's work on important initiatives and projects
allows us to balance our "distinctive development, trails, and quality of life amenities amidst an ever-
expanding urban landscape."
The current and potential development within our community continues to be both an exciting and
challenging time in Westlake! Adhering to the Town's Vision remains the key to Westlake's success in
managing the significant growth. While growth has continued, albeit slower in FY 2020 and 2021-, it also
presents very clear challenges for our community if we wish to maintain the elements of Westlake that
make it so distinctive. These community attributes include our beautiful neighborhoods with high quality
residences, strong aesthetic standards, an exemplary Town owned IB World K-12 charter school, open
space preservation, future public art projects, streetscaping, emphasis on proactive planning, and
maintaining our view corridors. The impending change that surrounds Westlake involves not only our
current internal development but also the growth opportunities planned for the State Highway corridors
(SH 114 and SH 170) in northeast Tarrant County and into southern Denton County. Our neighboring
communities have also experienced significant growth and are nearing a fully developed condition that
will only add pressure from developers as they look to a relatively undeveloped Westlake.
The impact of anticipated growth along the SH 114 corridor is best described by Mr. Robin McCaffrey
(AIA and APA) of MESA Planning, the firm that was engaged to update the Town's 2015 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
Dallas/ 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 the 2020 population of 1,664, our Town
saw an increase of 54 additional residents in the past year. We will monitor and plan for the anticipated
increase in these numbers considering our Comprehensive Plan's 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
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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 our Comprehensive Plan will be essential for addressing this issue via the Town's
thoroughfare plan as it pertains to development in the community.
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, Quail Hollow, Vaquero, and The Knolls of Solana.
The Entrada mixed-use development continues to progress slowly with residential and commercial
projects under construction. Entrada's infrastructure is 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 - including single-family homes, villas, condominiums, and townhomes.
Our residential construction activity shows a steady increase in building permits for housing, even
through the effects of Covid-19. Housing starts in Westlake, due to our homes' high value, add taxable
value to our taxing base; however, this also impacts the demand for municipal services, especially the
Town's charter school, Westlake Academy.
As the area economy continues to push through the economic downturn of a pandemic, 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 our Comprehensive Plan.
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 14,000 individuals, pre-COVID. These
office complexes are comprised of notable corporate clients that include Deloitte LLP, Fidelity
Investments and Charles Schwab.
Commercial Development in Entrada: The mixed-use development of Entrada, located at
FM1938/Davis Boulevard and SH114, will also create growth in our commercial tax base. During the
past budget year additional commercial buildings have been approved by the Town for the
development. Starbucks and several medical services offices opened for business, joining CVS
Pharmacy and Primrose Private Preschool, and soon the water front restaurants and chapel on the
northeast side of the development will be as well. Other approved commercial uses include various
retail, restaurants, wedding chapel, reception hall, and hotels.
Economic Development: The Town has pursued the ideas advanced in the Economic Development
element of the Comprehensive Plan. 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 industry hub which has already been created through our corporate residents of
Fidelity, Deloitte, and Charles Schwab. Further, we pursue the types of businesses interested in high
quality office campus development and creating well-paying employees' positions. The completion of
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Charles Schwab and its merger with TD Ameritrade's complex in Southlake firmly establishes us as a
leading financial services corridor within the DFW Metroplex. Additionally, the Town has recently
entered into an economic development agreement with Deloitte, LLP for expansion of their
international learning and innovation center, no later than early 2022.
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 pastoral 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.
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. As we look to regional or state issues and opportunities, we will monitor these issues among
others:
Impact of the Legislative Session – The 87th Texas legislative session began on January 12, 2021.
We understand there may be a few bills that could impact the Town. While it is still early, we will
continue to follow this legislative session as the impact of any applicable bills passed could necessitate
changes in our internal operations as well as our revenue forecasts in future years.
Water Usage and Demand – The Town's future water needs have been secured through the addition
of a million gallon water tank in 2013, more recently through the completion of the new 30-inch
regional water line through a partnership with the City of Fort Worth and the Town of Westlake, and
lastly, we are entering the bidding process for the addition of a fifth water pump at our Westlake Pump
Station to be completed by the end of 2021. These improvements are estimated to meet the needs
projected development at final build-out of the Town, along with our neighboring communities in
northeast Tarrant County.
Westlake's Residential Growth Impact on the Academy: 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.
Town staff continues work on the updating of the Westlake Academy Facility Master Plan to
determine the best balance of student population and facility needs.
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 infrastructure, including water and sewer
utilities and our roadways.
As our community, and those surrounding us, continue to grow, Staff will maintain partnerships and/or
opportunities that will help foster mobility within the community without compromising the design
standards and expectations of our residents. East/West traffic continues to be an area of concern along
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with the ability of our surrounding highway capacity for transient vehicles. Town staff continues to
work with TxDOT regarding the construction of service roads between FM 1938 and Dove Road in
Southlake and for the construction of SH 170 main lanes from SH 114 west to I-35.
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 2020-2021 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 for the fiscal year ended September 30, 2019. To be awarded a
Certificate of Achievement, a government must publish an easily readable and efficiently organized
comprehensive annual financial report. This report must satisfy both generally accepted accounting
principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
comprehensive annual financial report continues to meet the Certificate of Achievement Program's
requirements and we are submitting it to GFOA to determine its eligibility for another certificate.
In addition, we also received our twelfth GFOA Distinguished Budget Presentation Award for the fiscal
year beginning October 1, 2019 for our municipal budget. To qualify for the Distinguished Budget
Presentation Award, the Town budget document 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 nine years.
Acknowledgements
The preparation of this report could not be accomplished without the efficient and dedicated services of
the entire Finance Department staff. Appreciation is expressed to all Town employees, especially those
employees who were instrumental in the successful completion of this report.
Town Staff would sincerely like to thank the Mayor and Council for their conservative leadership and
steadfast support through their governance of the Town’s financial operations in a responsible and
progressive manner.
Respectfully Submitted,
Amanda DeGan Ginger R. Awtry
Town Manager/Superintendent Finance Director
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Financial Section
2
Weaver and Tidwell, L.L.P.
2300 North Field Street, Suite 1000 | Dallas, Texas 75201
Main: 972.490.1970
CPAs AND ADVISORS | WEAVER.COM
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, 2020, 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.
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, 2020, 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.
The Honorable Mayor
and Members of Town Council
Town of Westlake, Texas
4
Emphasis of Matters
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 9 through 19 and budgetary comparison information
and pension and OPEB schedules on pages 91 through 101 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.
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.
The Honorable Mayor
and Members of Town Council
Town of Westlake, Texas
5
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
April 20, 2021 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 solely 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
April 20, 2021
6
7
Management’s Discussion and Analysis
8
9
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, 2020. 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 and the statistical section,
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 $61,031,306 (Net position). This
number must be viewed within the context that the vast majority of the Town's net position of
$51,306,319 (84.1%) 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 $3,703,143 (6.1%). The remaining amount,
$6,021,844 (9.8%), represents unrestricted net position.
As of the close of the current fiscal year, the Town of Westlake's governmental funds reported
combined ending fund balances of $23,520,815, which is a decrease of $102,058 in comparison
with the prior year. Within this total, $7,255,506 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 $16,590,510 an
increase of $1,352,312 in comparison with the prior year. Of this total fund balance, $16,265,309 is
unassigned. This represents 170.3% of the total general fund expenditures and is equivalent to 613
operating days.
The Town's capital assets (net of accumulated depreciation) decreased by $1,317,438. This is due
in large part to depreciation expense exceeding current year capital asset additions.
The Town's long-term debt decreased by $1,767,955 in total, primarily due to the scheduled
repayment of principal on outstanding bonded debt.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the Town's basic financial statements.
The Town's basic financial statements are comprised of the following three components:
1) Government-wide financial statements,
2) Fund financial statements, and
3) Notes to the financial statements.
This report also contains supplementary information in addition to the basic financial statements
themselves.
10
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 41 - 42 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.
11
The Town maintains eleven individual governmental funds. Information is presented separately in the
governmental funds balance sheet and in the governmental funds statement of revenues, expenditures,
and changes in fund balances for the General, Westlake Academy, Debt Service, Capital Projects, and
Westlake Academy Expansion Capital Projects funds, all of which are presented as major funds. Data
from the other funds (Visitors Association, Economic Development, Lone Star Public Facilities Corporation,
Public Arts, Solana PID Capital Projects and 4B Economic Development Corporation Funds) 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, Public Arts, 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 26 - 32 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 33 - 35 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 41 – 88 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 91 - 113.
12
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 and deferred outflows exceeded liabilities and deferred inflows
by $61,031,306 at the close of the most recent fiscal year.
The Town’s combined net position changed from a year ago, increasing $78,126. 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, $51,306,319 (84.1%), 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, $3,703,143 (6.1%), represents resources that are subject
to external restrictions on how they may be used. The remaining balance of $6,021,844 (9.8%) represents
unrestricted net position which is available for the Town’s ongoing expenses.
Table 1
Condensed Statement of Net Position
At September 30, 2020 and 2019
2020 2019 2020 2019 2020 2019
Current and other assets 24,790,376$ 25,588,032$ 7,072,350$ 7,165,216$ 31,862,726$ 32,753,248$
Capital assets 76,747,384 77,683,045 10,260,090 10,641,867 87,007,474 88,324,912
Total Assets 101,537,760 103,271,077 17,332,440 17,807,083 118,870,200 121,078,160
Deferred outflows of resources 2,670,680 2,816,250 78,178 103,307 2,748,858 2,919,557
Noncurrent liabilities 38,422,095 40,286,447 7,833,053 8,115,903 46,255,148 48,402,350
Other liabilities 1,392,491 2,092,732 11,150,698 11,425,166 12,543,189 13,517,898
Total Liabilities 39,814,586 42,379,179 18,983,751 19,541,069 58,798,337 61,920,248
Deferred inflows of resources 1,757,053 1,115,505 32,362 8,784 1,789,415 1,124,289
Net Position (deficit )
Net investments in capital assets 46,633,638 48,030,010 4,672,681 4,909,471 51,306,319 52,939,481
Restricted 3,653,143 3,786,893 50,000 - 3,703,143 3,786,893
Unrestricted 12,350,020 10,775,740 (6,328,176)(6,548,934)6,021,844 4,226,806
Total Net Position (deficit)62,636,801$ 62,592,643$ (1,605,495)$ (1,639,463)$ 61,031,306$ 60,953,180$
Liabilities
Governmental Activities Business-type Activities Total
Assets
13
Table 2
Changes in Net Position
For the Years Ended September 30, 2020 and 2019
2020 2019 2020 2019 2020 2019
Program revenues
Char ges for services 2,645,897$ 6,808,893$ 6,478,333$ 5,404,863$ 9,124,230$ 12,213,756$
Operating grant and contributions 9,725,263 9,166,821 - - 9,725,263 9,166,821
Capital grants and contributions 280,000 1,861,623 - 54 280,000 1,861,677
General revenues
Taxes
Sales taxes 7,378,900 8,032,671 - - 7,378,900 8,032,671
Property taxes 2,411,279 1,956,630 - - 2,411,279 1,956,630
Hotel occupancy taxes 369,145 861,710 - - 369,145 861,710
Mixed beverage taxes 41,949 66,923 - - 41,949 66,923
Franchise taxes 972,520 964,239 - - 972,520 964,239
Interest on investments 260,003 517,128 62,177 110,208 322,180 627,336
Miscellaneous 72,688 142,230 - - 72,688 142,230
Total revenues 24,157,644 30,378,868 6,540,510 5,515,125 30,698,154$ 35,893,993$
General governmental 6,555,048 6,091,403 - - 6,555,048 6,091,403
Public safety 3,991,114 3,489,071 - - 3,991,114 3,489,071
Culture and recreation 282,512 299,815 - - 282,512 299,815
Economic development 150,037 306,982 - - 150,037 306,982
Public works 1,326,090 1,368,049 - - 1,326,090 1,368,049
Visitor services 802,244 927,670 - - 802,244 927,670
Education 9,979,674 9,523,906 - - 9,979,674 9,523,906
Interest on long-term debt 1,103,925 1,131,485 - - 1,103,925 1,131,485
Water and sewer - - 6,407,650 7,544,125 6,407,650 7,544,125
Cemeter y - - 21,734 10,628 21,734 10,628
Total expenses 24,190,644 23,138,381 6,429,384 7,554,753 30,620,028 30,693,134
Increase (decrease) in net
position before transfers (33,000) 7,240,487 111,126 (2,039,628) 78,126 5,200,859
Transfers 77,158 207,213 (77,158)(207,213)- -
Change in net position 44,158 7,447,700 33,968 (2,246,841) 78,126 5,200,859
Net position (deficit ), be ginning 62,592,643 55,144,943 (1,639,463)607,378 60,953,180 55,752,321
Net position (deficit), ending 62,636,801$ 62,592,643$ (1,605,495)$ (1,639,463)$ 61,031,306$ 60,953,180$
Governmental Activities Business-type Activities Total
Revenues
Expenses
14
Governmental activities: Governmental activities increased the Town's net position by $44,158 (0.1%).
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 $1,574,280 primarily due to an increase in charges for
services from building permits and fees and sales taxes.
Total revenues for governmental activities decreased by $6,221,224 when compared to the prior year.
General revenue had a decrease of $1,035,047, while program revenues had a decrease of $5,186,177.
Program revenues
Charges for services decreased $4,162,996 which was primarily due to a decrease in permit
and review fees for development.
Capital Grants and Contributions decreased by $1,581,623 with the major portion being
attributed to a $1 million donation received in the prior year for Westlake Academy expansion.
General revenues
Sales tax decreased by $653,771 as a result of decreased taxable sales due, in part, to the
COVID-19 pandemic.
Property taxes increased by $454,649 due to increases in both the tax rate and taxable
valuation.
Expenses
Total expenses for governmental activities increased by $1,052,263 or approximately 4.5%.
Westlake Academy expenses reflected 43.3% of the increase which increased $455,768. This
increase is primarily due to the increase in the Westlake Academy teachers’ pension and OPEB
expense.
The remaining increase in expenses was primarily due to increases in public safety expenses
of $502,043 due to an increase in fire fighter personnel and general governmental expenses
of $463,645 which was primarily due to an increase in the Town’s pension expense.
Business-type Activities: The net position of the business-type activities was a deficit balance of $1,605,495
as of September 30 2020, which was an increase of $33,968. The business-type activities increased
primarily due to operating revenues increasing by over $1.0 million for service fees and operating
expenses decreasing by over $1.1 million, mainly attributed to reduced spending for the Southlake waste
water treatment and professional and contract services.
Revenues (Charges for Services) for business-type activities for the fiscal year ending September 30, 2020
were $6,478,333; an increase of $1,073,470 or 19.9% due to increased water consumption and service
fees. Operating expenses for the business-type activities for the fiscal year ending September 30, 2020
were $6,429,384; a decrease of $1,125,369 or 14.9%. This decrease was primarily attributed to reduced
and conservative spending during the pandemic.
15
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 $23,520,815; a decrease of $102,058 in comparison with the prior year. Approximately 69.2%
of this total ($16,265,309) constitutes unassigned fund balance, which is available for spending at the
government's discretion. The remainder of fund balance is non-spendable, restricted, committed or
assigned to indicate that it is not available for new spending because of constraints.
The following tables present a summary of general, special revenue, capital project, and debt service
fund revenues and expenditures for the fiscal year ended September 30, 2020, and the amount and
percentage of increases and decreases in relation to the prior year.
Table 3
Summary of Governmental Funds Revenues
Increase Percent
2019-20 Percent (Decrease) Increase
Amount of Total From 2018-19 (Decrease)
Taxes
Sales taxes 7,378,900$ 30.5% (653,771)$ -8.1%
Property taxes 2,411,864 10.0% 455,623 23.3%
Mixed beverage taxes 41,949 0.2% (24,974) -37.3%
Hotel occupancy taxes 369,145 1.5% (492,565) -57.2%
Franchise taxes 972,520 4.0% 8,281 0.9%
Subtotal - Taxes 11,174,378 46.2% (707,406) -6.0%
State program 8,011,061 33.1% 595,842 8.0%
Federal program 137,910 0.6% 27,662 25.1%
Interest income 260,003 1.1% (257,125) -49.7%
Building permits and fees 1,996,834 8.3% (3,876,695) -66.0%
Fines and penalties 492,435 2.0% (124,016) -20.1%
Intergovernmental 24,750 0.1% 24,750 0.0%
Contributions 292,860 1.2% (960,340) -76.6%
Miscellaneous 1,812,994 7.6% 8,685 0.5%
Total Revenues 24,203,225$ 100.0% (5,268,643)$ -17.9%
Revenues
16
Table 4
Summary of Governmental Funds Expenditures
Increase Percent
2019-20 Percent (Decrease)Increase
Amount Of Total From 2018-19 (Decrease)
General government 5,169,039$ 20.7%(161,135)$ -3.0%
Public safety 3,512,456 14.1% 242,678 7.4%
Culture and recreation 264,248 1.1%(7,898) -2.9%
Economic development 203,407 0.8%(103,575) -33.7%
Public works 622,307 2.5% 28,477 4.8%
Visitor services 781,883 3.1%(122,806) -13.6%
Education 9,845,685 39.4% 848,971 9.4%
Capital outlay 1,627,548 6.5%(1,897,889) -53.8%
Debt services 2,941,491 11.7% 46,640 1.6%
Total Expenditures 24,968,064$ 100.0%(1,126,537)$ -4.3%
Expenditures
Below are summaries and explanations of the changes in fund balances from fiscal year 2019 to fiscal
year 2020 of the Governmental Funds that are contained in the above totals.
General Fund - At the end of the current fiscal year, fund balance for the general fund (which for financial
reporting purposes also includes the major maintenance fund and vehicle maintenance/replacement
fund) was $16,590,510, an increase of $1,352,312 in comparison with the prior year. Of this total,
$16,265,309 is unassigned. This represents 170.3% of the total general fund expenditures including transfers
out to other funds related to operations of $272,089. This is equivalent to 613 operating days.
Revenues decreased $4,450,382 from FY19 to FY20; the primary reason for the decrease was building
permits and fees which decreased $3,876,695 from the previous year due to the Schwab building
and campus being built in 2019.
Expenditures remained consistent from FY19 to FY20, increasing by only $47,810 due to conservative
spending during the pandemic.
Westlake Academy - Fund balance increased by $373,597 primarily due to a transfer in from the general
fund.
Capital Projects Fund - Fund balance decreased by $1,651,656 primarily due to spending of proceeds of
bonds issued in prior years on current year projects.
Westlake Academy Expansion Capital Projects Fund – Fund balance increased by $213,705 due primarily
to transfers in of $280,000 from the Economic Development Fund and interest income of $33,705, offset
by a $100,000 transfer out for a cost analysis and programming study of the future Westlake Academy
Arts & Science Center expansion.
17
Debt Service Fund – The debt service fund remained consistent only slightly increasing by $105,835 with
an ending fund balance of $150,518. The debt service fund had transfers in from the general and non-
major funds totaling $2,116,814 which offset the net of debt service payments and property tax revenues
($2,010,979).
Non Major Funds – The non major fund balance decreased by $495,851 the result of transfers to the debt
service fund of $1,844,725.
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
increased by $33,968. This increase is the net effect of a decrease in the utility fund of $14,168 primarily
due to reduced operating revenues and increased operating costs; and a $48,136 increase in the
cemetery fund due to a $36,779 increase in charges for services.
General Fund Budgetary Highlights
The General Fund budget for fiscal year 2020 was amended in total to increase the net change in fund
balance from ($126,176) to $168,204, a total increase of $294,380. The amended budget for revenues was
decreased by $714,606 (6.4%) based on an anticipated decrease in building permits and fees ($960,395).
The amended budget for expenditures was decreased by $235,126 (2.3%).This decrease was primarily
due to anticipated general government expenditures decreasing $252,034 primarily for contracted
planning and development cost of $180K and equipment of $125K. In addition, the anticipated budget
for transfers out was reduced by $773,860.
The General Fund actual revenues were more than the amended budget by $658,589 primarily due to
sales taxes and building permits and fee revenues more than budgeted. Actual expenditures were less
than the amended budget by $494,187 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, 2020, totaled $87,007,474 (net of accumulated depreciation). The investment in capital
assets includes land, buildings, improvements, machinery and equipment, infrastructure, and construction
in progress. The net decrease in the Town's investment in capital assets for the current fiscal year was
$1,317,438 or 1.5% mostly due to depreciation exceeding current year capital asset additions.
Table 5
Town’s Capital Assets
(Net of Accumulated Depreciation)
2020 2019 2020 2019 2020 2019
Land 12,446,059$ 12,446,059$ -$ -$ 12,446,059$ 12,446,059$
Capital improvements 27,033,940 27,747,452 8,646,033 9,009,627 35,679,973 36,757,079
Building 34,370,215 34,937,051 34,370,215 34,937,051
Machinery and equipment 1,442,037 1,781,244 1,285,027 1,276,845 2,727,064 3,058,089
W/W treatments rights - - 26,365 - 26,365
Construction in pro gress 1,455,133 771,239 329,030 329,030 1,784,163 1,100,269
Total capital assets 76,747,384$ 77,683,045$ 10,260,090$ 10,641,867$ 87,007,474$ 88,324,912$
Governmental Activities Business-type Activities Total
Additional information on the Town's capital assets can be found in Note 4 on pages 55 - 56 of this
report.
18
Long-term liabilities - At the end of the current fiscal year, the Town had total long-term debt outstanding
of $40,398,437. Of this amount, $33,449,000 represents bonded indebtedness with premium outstanding
of $1,305,838, $398,012 of capital leases, $437,270 of compensated absences, $128,373 in loans and
$4,679,944 of contractual obligations. During the fiscal year 2019-2020, the Town's total debt payable
decreased by $ 1,767,955 from payment of bond, capital lease, and note principal of $2,066,453,
amortization of premium of $100,984, a decrease in compensated absence liabilities of $186,141, and
issuance of a $585,623 capital lease.
Standard & Poor's Ratings Services, a division of McGraw-Hill, Inc. has recently increased the Town's rate
from AA+/stable to AAA/stable. Additional information about the rating agency or the significance of the
rating provided may be obtained from Standard & Poor's web site. Additional information on the Town's
long-term debt can be found in Note 5 on pages 58 – 62.
Table 6
Outstanding Debt at Year-End
2020 2019 2020 2019 2020 2019
General obligation bonds 12,660,000$ 13,570,000$ -$ -$ 12,660,000$ 13,570,000$
Certificates of obligation 17,897,900 18,601,250 2,891,100 2,999,750 20,789,000 21,601,000
Contractual obligations - - 4,679,944 4,800,109 4,679,944 4,800,109
Capital leases 398,012 - - - 398,012 -
Premium on bonds 1,279,473 1,379,285 26,365 27,537 1,305,838 1,406,822
Notes payable 128,373 165,050 - - 128,373 165,050
Compensated absences 368,239 531,355 69,031 92,056 437,270 623,411
Total long-term debt 32,731,997$ 34,246,940$ 7,666,440$ 7,919,452$ 40,398,437$ 42,166,392$
Governmental Activities Business-type Activities Total
In addition to the liabilities in Table 6, the Town reports liabilities for the Academy’s proportionate share of
the TRS net pension and OPEB liabilities and the Town’s net pension and total OPEB liabilities associated
with TMRS.
The Town’s net pension liability relative to its participation in Texas Municipal Retirement System (TMRS)
decreased from $1,741,361 as of September 30, 2019 to $1,440,488 as of September 30, 2020. The Town’s
net other post-employment benefits (OPEB) liability relative to its participation in Texas Municipal
Retirement System (TMRS) increased from $54,484 as of September 30, 2019 to $82,590 as of September
30, 2020. The Academy’s proportionate share of the Teacher Retirement System (TRS) net pension liability
increased from $1,489,525 as of August 31, 2019 to $1,502,914 as of August 31, 2020. The Academy’s
proportionate share of the Teacher Retirement System (TRS) net OPEB liability decreased from $2,950,588
as of August 31, 2019 to $2,830,719 as of August 31, 2020.
19
Economic Factors and Next Year's Budgets
In the FY 2020-2021 adopted budget, the fund balance of the General Fund, which includes the Town’s
General Fund, General Major Maintenance Fund and the Vehicle Maintenance/Replacement Fund for
audit purposes, is anticipated to decrease by $271K. Adopted revenues and transfers in are budgeted to
be more than the 2020 actuals by $46K primarily due to a decrease in fines and penalties and the volatile
market for interest income.
Anticipated expenditures and transfers out are budgeted to be $1.6M less than the prior year. Payroll
increases were approximately $217K (market adjustments, staffing changes, and increased
insurance/benefits).
The COVID-19 public health crisis has presented unique challenges for the upcoming fiscal year. Given
the level of economic uncertainty due to COVID-19, the total budget and the economic impacts on
businesses and local governments are unknown. Therefore, Town staff recommended the following cost
saving adjustments:
All departments continue to budget expenditures conservatively;
No new staff requested unless the Town is awarded the SAFER grant for three new Fire/EMS
positions; Subsequent to the adoption of the budget, we were not awarded this grant;
Deferred transfers to conduit funds; and
Delayed capital improvement projects.
The budget continues to support initiatives for service delivery and our ongoing commitment to
community and organizational excellence. In adherence to our fiscal policies, the budget will be
monitored monthly and regular updates will be provided to Town Council in order to respond responsibly.
The budget is intended to be adaptable given the unknown long-term fiscal impact of COVID-19.
Contacting the Town's Finance Department
This financial report is designed to provide our citizens, customers, and investors and creditors with a
general overview of the Town's finances and to demonstrate the Town's accountability for the money it
receives. If you have questions about this report or need additional financial information, contact
Ginger R. Awtry, Town of Westlake Director of Finance, at 817-490-5719 or email at gawtry@westlake-
tx.org.
20
21
Basic Financial Statements
22
Town of Westlake Exhibit A-1
Statement of Net Position
September 30, 2020
The Notes to the Financial Statements are an integral part of this statement.
23
Primary Government
Discretely
Governmental Business-type Presented
Activities Activities Total Component Units
Cash and cash equivalents 22,694,794$ 5,562,951$ 28,257,745$ 4,196,080$
Receivables (net of allowance)1,740,154 1,027,342 2,767,496 50,527
Inventories - 88,639 88,639 -
Other assets 125,026 - 125,026 -
Restricted cash and cash equivalents 230,402 393,418 623,820 2,231,260
Capital assets:
Land and construction in progress 13,901,192 329,030 14,230,222 5,099,597
Buildings and improvements 77,583,883 14,899,416 92,483,299 52,590,312
Wastewater treatment rights - 635,199 635,199 -
Machinery and equipment 6,108,098 3,710,614 9,818,712 4,690,979
Less accumulated depreciation (20,845,789) (9,314,169) (30,159,958) (35,416,962)
Total capital assets 76,747,384 10,260,090 87,007,474 26,963,926
Total assets 101,537,760 17,332,440 118,870,200 33,441,793
Deferred outflows of resources - TRS OPEB 397,462 - 397,462 -
Deferred outflows of resources - TMRS OPEB 22,528 2,767 25,295 -
Deferred outflows of resources - TRS pension 955,246 - 955,246 -
Deferred outflows of resources - TMRS pension 613,962 75,411 689,373 -
Deferred loss on refunding 681,482 - 681,482 -
Total deferred outflows of resources 2,670,680 78,178 2,748,858 -
Accounts payable 1,260,049 397,448 1,657,497 427,273
Customer deposit payable - 241,480 241,480 -
Unearned revenue - 289,048 289,048 432,105
Accrued interest payable 132,442 10,222,722 10,355,164 37,941,881
Noncurrent liabilities:
Due within one year
Long-term debt 1,883,135 4,793,594 6,676,729 49,212,556
Compensated absences 36,824 6,903 43,727 -
Due in more than one year
Long-term debt 30,480,623 2,803,815 33,284,438 -
Compensated absences 331,415 62,128 393,543 -
TRS net OPEB liability 2,830,719 - 2,830,719 -
TMRS total OPEB liability 73,555 9,035 82,590 -
TRS net pension liability 1,502,914 - 1,502,914 -
TMRS net pension liability 1,282,910 157,578 1,440,488 -
Total liabilities 39,814,586 18,983,751 58,798,337 88,013,815
Deferred inflows - TRS OPEB 1,224,611 - 1,224,611 -
Deferred inflows - TRS pension 268,967 - 268,967 -
Deferred inflows - TMRS OPEB 4,389 539 4,928 -
Deferred inflows - TMRS pension 259,086 31,823 290,909 -
Total deferred inflows of resources 1,757,053 32,362 1,789,415 -
Net investment in capital assets 46,633,638 4,672,681 51,306,319 (22,248,630)
Restricted for:
Tourism 423,333 - 423,333 -
Construction 3,011,918 - 3,011,918 -
Court security and technology 203,173 - 203,173 -
Future projects 14,719 - 14,719 -
Improvements - 50,000 50,000 -
Unrestricted 12,350,020 (6,328,176) 6,021,844 (32,323,392)
Total net position (deficit)62,636,801$ (1,605,495)$ 61,031,306$ (54,572,022)$
NET POSITION (DEFICIT )
ASSETS
LIABILITIES
DEFERRED INFLOWS OF RESOURCES
DEFERRED OUTFLOWS OF RESOURCES
Town of Westlake
Statement of Activities
For the Year Ended September 30, 2020
The Notes to the Financial Statements are an integral part of this statement.
24
Program Revenues
Charges for Operating Grants Capital Grants
Expenses Services and Contributions and Contributions
PRIMARY GOVERNMENT
Governmental activities:
General government 6,555,048$ 318,140$ -$ -$
Public safety 3,991,114 649,795 37,610 -
Cultural and recreation 282,512 - 2,089 -
Public works 1,326,090 1,587,839 - -
Economic development 150,037 - - 280,000
Visitor services 802,244 - - -
Education 9,979,674 90,123 9,685,564 -
Interest on long-term debt 1,103,925 - - -
Total governmental activities 24,190,644 2,645,897 9,725,263 280,000
Business-type activities:
Water and sewer 6,407,650 6,410,755 - -
Cemetery 21,734 67,578 - -
Total business-type activities 6,429,384 6,478,333 - -
Total primary government 30,620,028$ 9,124,230$ 9,725,263$ 280,000$
Di scretely P resented
Component Units 13,104,158$ 7,456,317$ -$ -$
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
25
Primary Government
Discretely
Governmental Business - Type Presented
Activities Activities Total
Component Units
(6,236,908)$ -$ (6,236,908)$ -$
(3,303,709) - (3,303,709) -
(280,423) - (280,423) -
261,749 - 261,749 -
129,963 - 129,963 -
(802,244) - (802,244) -
(203,987) - (203,987) -
(1,103,925) - (1,103,925) -
(11,539,484) - (11,539,484) -
- 3,105 3,105 -
- 45,844 45,844
- 48,949 48,949 -
(11,539,484)$ 48,949$ (11,490,535)$ -$
-$ -$ -$ (5,647,841)$
7,378,900 - 7,378,900 -
2,411,279 - 2,411,279 -
369,145 - 369,145 -
41,949 - 41,949 -
972,520 - 972,520 -
260,003 62,177 322,180 70,283
72,688 - 72,688 -
77,158 (77,158) - -
11,583,642 (14,981) 11,568,661 70,283
44,158 33,968 78,126 (5,577,558)
62,592,643 (1,639,463) 60,953,180 (48,994,464)
62,636,801$ (1,605,495)$ 61,031,306$ (54,572,022)$
Net (Expense) Revenue and
Changes in Net Position
Town of Westlake
Balance Sheet
Governmental Funds
September 30, 2020
The Notes to the Financial Statements are an integral part of this statement.
26
Debt
Westlake Service
General Academy Fund
ASSETS
Cash and cash equivalents 15,976,916$ 1,351,339$ 150,518$
Receivables :
Property taxes 5,818 - 1,917
Accounts receivable 1,045,393 437,260 -
Due from other funds 249,766 - -
Prepaid items 41,586 76,171 -
Restricted cash and cash equivalents - - -
Total assets 17,319,479 1,864,770 152,435
TOTAL ASSETS 17,319,479$ 1,864,770$ 152,435$
LIABILITIES, DEFFERED INFLOWS OF
RESOURCES AND FUND BALANCE
Liabilities:
Accounts payable 723,151$ 101,706$ -$
Due to other funds - - -
Total liabilities 723,151 101,706 -
DEFERRED INFLOWS OF RESOURCES
Unavailable contributions - 1,777 -
Unavailable resources - property taxes 5,818 - 1,917
Total deferred inflows of resources 5,818 1,777 1,917
FUND BALANCES
Nonspendable:
Prepaid items 41,586 76,171 -
Restricted for:
Tourism - - -
Capital items - - -
Court security and technology 203,173 - -
Debt service - - 150,518
Future projects - - -
Education - 1,685,116 -
Committed for:
Street and tree improvements 80,442 - -
Unassigned 16,265,309 - -
Total fund balances 16,590,510 1,761,287 150,518
TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES 17,319,479$ 1,864,770$ 152,435$
Exhibit A-3
27
Westlake
Academy Nonmajor Total
Capital Expansion Governmental Governmental
Projects Capital Projects Funds Funds
1,762,320$ 3,011,918$ 441,783$ 22,694,794$
- - - 7,735
- - 249,766 1,732,419
- - - 249,766
- - 7,269 125,026
- - 230,402 230,402
1,762,320 3,011,918 929,220 25,040,142
1,762,320$ 3,011,918$ 929,220$ 25,040,142
223,193$ -$ 211,999$ 1,260,049$
- - 249,766 249,766
223,193 - 461,765 1,509,815
- - - 1,777
- - - 7,735
- - - 9,512
- - 7,269 125,026
- - 416,064 416,064
1,539,127 3,011,918 29,403 4,580,448
- - - 203,173
- - - 150,518
- - 14,719 14,719
- - - 1,685,116
- - - 80,442
- - - 16,265,309
1,539,127 3,011,918 467,455 23,520,815
1,762,320$ 3,011,918$ 929,220$ 25,040,142$
Town of Westlake Exhibit A-4
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position
September 30, 2020
The Notes to the Financial Statements are an integral part of this statement.
28
Total fund balance-governmental funds balance sheet 23,520,815$
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. 76,747,384
Deferred losses on refunding are reported as deferred outlfows of resources
in the government-wide statement of net position. 681,482
Revenues earned but not available within sixty days of the fiscal year-end are not
recognized as revenue in the fund financial statements. 9,512
Deferred outflows of resources related to the Town's TMRS pension liability
and OPEB liability increased net position by $613,962 and $22,528, respectively;
while the Town's TMRS deferred resource inflows related to the pension
liability and OPEB liability decreased net position by $259,086 and $4,389.
This amount is the net effect.373,015
Deferred outflows of resources related to the Academy's TRS pension liability
and OPEB liability increased net position by $955,246 and $397,462, respectively;
while the Academy's TRS deferred resource inflows related to the pension
liability and OPEB liability decreased net position by $268,967 and $1,224,611,
respectively. This amount is the net effect.(140,870)
Interest payable on long-term debt does not require current financial resources, therefore
interest payable is not reported as a liability in the governmental funds balance sheet.(132,442)
Long-term liabilities, including bonds payable, are not due and payable in the current
period, and therefore are not reported in the fund financial statements.(38,422,095 )
NET POSITION OF GOVERNMENTAL ACTIVITIES - statement of net position 62,636,801$
29
Town of Westlake
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2020
The Notes to the Financial Statements are an integral part of this statement.
30
Westlake Debt
General Academy Service Fund
REVENUES
Taxes
Sales 5,534,125$ -$ -$
Property 1,725,951 - 685,913
Mixed beverage 41,949 - -
Hotel occupancy - - -
Franchise 972,520 - -
State program revenues - 8,011,061 -
Federal program revenues - 137,910 -
Interest income 170,036 17,293 -
Building permits and fees 1,996,834 - -
Fines and penalties 492,435 - -
Intergovernmental 24,750 - -
Contributions 12,860 - -
Miscellaneous 126,198 1,675,317 -
Total revenues 11,097,658 9,841,581 685,913
EXPENDITURES
Current
General government 5,169,039 - -
Public safety 3,512,456 - -
Cultural and recreation 264,248 - -
Public works 567,995 - -
Economic development - - -
Visitor services - - -
Education - 9,845,685 -
Capital outlay - - -
Debt service
Principal retirement 36,677 187,611 1,613,350
Interest and other fiscal charges - 20,311 1,083,542
Total expenditures 9,550,415 10,053,607 2,696,892
Excess (deficiency) of revenues
Over (Under) Expenditures 1,547,243 (212,026) (2,010,979)
OTHER FINANCING SOURCES (USES)
Transfers in 77,158 - 2,116,814
Transfers out (272,089) - -
Issuance of capital lease - 585,623 -
Net other financing sources (uses) (194,931) 585,623 2,116,814
NET CHANGE IN FUND BALANCES 1,352,312 373,597 105,835
FUND BALANCES, AT BEGINNING OF YEAR 15,238,198 1,387,690 44,683
FUND BALANCES AT END OF YEAR 16,590,510$ 1,761,287$ 150,518$
Exhibit A-5
31
Nonmajor Total
Capital Governmental Governmental
Projects Funds Funds
-$ -$ 1,844,775$ 7,378,900$
- - - 2,411,864
- - - 41,949
- - 369,145 369,145
- - - 972,520
- - - 8,011,061
- - - 137,910
30,204 33,705 8,765 260,003
- - - 1,996,834
- - - 492,435
- - - 24,750
- - 280,000 292,860
- - 11,479 1,812,994
30,204 33,705 2,514,164 24,203,225
- - - 5,169,039
- - - 3,512,456
- - - 264,248
54,312 - - 622,307
- - 203,407 203,407
- - 781,883 781,883
- - - 9,845,685
1,627,548 - - 1,627,548
- - - 1,837,638
- - - 1,103,853
1,681,860 - 985,290 24,968,064
(1,651,656) 33,705 1,528,874 (764,839)
100,000 280,000 100,000 2,673,972
(100,000) (100,000) (2,124,725) (2,596,814)
- - - 585,623
- 180,000 (2,024,725) 662,781
(1,651,656) 213,705 (495,851) (102,058)
3,190,783 2,798,213 963,306 23,622,873
1,539,127$ 3,011,918$ 467,455$ 23,520,815$
Westlake
Academy
Expansion Capital
Projects Fund
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, 2020
The Notes to the Financial Statements are an integral part of this statement.
32
Net change in fund balances- total governmental funds.(102,058)$
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.1,430,820
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. (2,366,481)
The repayment of the principal of long term debt consumes the current financial resources of
governmental funds, but has no effect on net position. The amortization of bond premiums
and deferred gain/loss on refunding of long term debt is reported in the statement of
activities but does not require the use of current financial resources. Therefore, the
effect of the amortization of these various items are not reported in the statement of
revenues, expenditures, and changes in fund balance.
This amount represents the net effect of the following items:
Repayments 1,650,027
Amortization of deferred loss on refunding (108,507)
Amortization of premium on bonds 99,812 1,641,332
Governmental funds reflect the proceeds of capital leases as other financing sources and
payments as expenditures. However, in the government-wide statements, the proceeds
and payments are reflected as changes in liabilities. This amount represents the net
effect of proceeds ($585,623) and payments, $187,611. (398,012)
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. 8,623
Implementation of GASB 68 and 75 requires certain expenditures to be de-expended and recorded as
deferred outflows of resources. The changes in deferred outflows from pension and OPEB activity for
TMRS decreased net position by $219,000 and increase net position by $14,422, respectively. The change in
net position liability increased net position by $267,960. The change in OPEB liability decreased net position
by $25,031. The change in deferred inflows of resources from pension and OPEB activity for TMRS decreased
net position by $192,776 and increased net position by $815, respectively. This amount is the net effect. (153,612)
Implementation of GASB 68 and 75 requires certain expenditures to be de-expended and recorded as
deferred outflows of resources. The changes in deferred outflows from pension and OPEB activity for
TRS increased net position by $37,423 and $130,094, respectively. The change in net pension liability
decreased net position by $13,389. The change in OPEB liability increased net position by $119,869.
The changes in deferred inflows of resources from pension and OPEB activity for TRS decreased net position
by $158,023 and by $291,564, respectively. This amount is the net effect. (175,590)
Current year changes in the long-term liability for compensated absences do not require
the use of current financial resources; and therefore, are not reported as expenditures in
governmental funds.163,116
Certain revenues in the government-wide statement of activities that do not provide current
financial resources are not reported as revenue in the governmental funds. (3,980)
CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES - statement of activities 44,158$
Town of Westlake Exhibit A-7
Statement of Net Position
Proprietary Funds
September 30, 2020
The Notes to the Financial Statements are an integral part of this statement.
33
Utility Cemetery
Fund Fund Total
ASSETS
Current assets
Cash and cash equivalents 5,390,988$ 171,963$ 5,562,951$
Accounts receivable 1,027,342 - 1,027,342
Inventories - 88,639 88,639
Restricted cash and investments 343,418 50,000 393,418
Total current assets 6,761,748 310,602 7,072,350
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 3,710,614 - 3,710,614
Less: accumulated depreciation (9,314,169) - (9,314,169)
Total capital assets 10,260,090 - 10,260,090
Total noncurrent assets 10,260,090 - 10,260,090
TOTAL ASSETS 17,021,838 310,602 17,332,440
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows - TMRS OPEB 2,767 2,767
Deferred outflows - TMRS pension 75,411 - 75,411
TOTAL DEFERRED OUTFLOWS OF RESOURCES 78,178 - 78,178
LIABILITIES
Current liabilities
Accounts payable 395,150 2,298 397,448
Customer deposits payable 241,480 - 241,480
Accrued interest payable 10,222,722 - 10,222,722
Unearned revenue 289,048 - 289,048
Compensated absences - current portion 6,903 6,903
Current portion of bonds payable 113,650 - 113,650
Contractual obli gations 4,679,944 - 4,679,944
Total current liabilities 15,948,897 2,298 15,951,195
Long-term liabilities:
Bonds payable 2,803,815 - 2,803,815
Compensated absences 62,128 - 62,128
Total OPEB liability 9,035 9,035
Net pension liability 157,578 - 157,578
Total long-term liabilities 3,032,556 - 3,032,556
TOTAL LIABILITIES 18,981,453 2,298 18,983,751
Deferred inflows - TMRS OPEB 539 - 539
Deferred inflows - TMRS pension 31,823 - 31,823
Total deferred inflows of resources 32,362 - 32,362
NET POSITION (DEFICIT )
Net investment in capital assets 4,672,681 - 4,672,681
Restricted for improvements - 50,000 50,000
Unrestricted (6,586,480) 258,304 (6,328,176)
TOTAL NET POSITION (DEFICIT )(1,913,799)$ 308,304$ (1,605,495)$
DEFERRED INFLOWS OF RESOURCES
Town of Westlake Exhibit A-8
Statement of Revenues, Expenses and Changes in Net Position
Proprietary Funds
For the Year Ended September 30, 2020
The Notes to the Financial Statements are an integral part of this statement.
34
Utility Cemetery
Fund Fund Total
OPERATING REVENUES
Char ges for services 6,067,022$ 67,578$ 6,134,600$
Miscellaneous revenue 343,733 - 343,733
Total operating revenues 6,410,755 67,578 6,478,333
OPERATING EXPENSES
Payroll costs 387,839 - 387,839
Professional and contract services 1,011,596 12,722 1,024,318
Depreciation 505,246 - 505,246
Amortization of wastewater treatment rights 26,365 - 26,365
Water purchases 1,201,671 - 1,201,671
Cost of cemetary lots sold - 3,379 3,379
Other operating costs 2,209,740 5,633 2,215,373
Total operating expenses 5,342,457 21,734 5,364,191
Net operating income 1,068,298 45,844 1,114,142
NON-OPERATING REVENUES (EXPENSES)
Interest income 59,885 2,292 62,177
Interest expense (1,065,193) - (1,065,193)
Total non-operating revenues (expenses)(1,005,308) 2,292 (1,003,016)
INCOME BEFORE TRANSFERS AND
CAPITAL CONTRIBUTIONS 62,990 48,136 111,126
Transfer in - - -
Transfer out (77,158) - (77,158)
Total transfers and capital contributions (77,158) - (77,158)
Chan ge in net position (14,168) 48,136 33,968
Total net position, beginning of year (1,899,631) 260,168 (1,639,463)
Total net position, end of year (1,913,799)$ 308,304$ (1,605,495)$
Town of Westlake Exhibit A-9
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2020
The Notes to the Financial Statements are an integral part of this statement.
35
Utility Cemetery
Fund Fund Total
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 6,281,319$ 67,578$ 6,348,897$
Payments to employees (412,200) - (412,200)
Payments to suppliers (5,457,213) (16,678) (5,473,891)
Net cash provided by operating activities 411,906 50,900 462,806
CASH FLOW FROM NONCAPITAL FINANCING ACTIVITIES
Transfers from other funds - - -
Transfer to other funds (77,158) - (77,158)
Net cash used in noncapital financing activities (77,158) - (77,158)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Principal paid on debt (228,815) - (228,815)
Interest paid on debt (218,215) - (218,215)
Purchase of property and equipment (149,834) - (149,834)
Net cash used in capital and related financing activities (596,864) - (596,864)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment earnings 59,885 2,292 62,177
Net cash provided by investing activities 59,885 2,292 62,177
Net increase (decrease) in cash (202,231) 53,192 (149,039)
Cash and cash equivalents at the
beginning of the year 5,936,637 168,771 6,105,408
Cash and cash equivalents at the
end of the year 5,734,406$ 221,963$ 5,956,369$
RECONCILIATION OF TOTAL CASH AND CASH EQUIVALENTS
Cash and cash equivalents 5,390,988$ 171,963$ 5,562,951$
Restricted cash and cash equivalents 343,418 50,000 393,418
Total cash and cash equivalents 5,734,406$ 221,963$ 5,956,369$
RECONCILIATION OF OPERATING INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
Operating income 1,068,298$ 45,844$ 1,114,142$
Adjustments to reconcile operating income to net
cash provided by operating activities:
Depreciation and amortization 531,611 - 531,611
Pension expense (2,911) - (2,911)
OPEB expense 1,575 - 1,575
Changes in operating assets and liabilities:
Receivables (109,821) - (109,821)
Prepaid Items 50,269 - 50,269
Inventory - 3,379 3,379
Compensated absences (23,025) - (23,025)
Accounts payable (1,084,475) 1,677 (1,082,798)
Customer deposits payable 2,110 - 2,110
Unearned revenue (21,725) - (21,725)
Net cash provided by operating activities 411,906$ 50,900$ 462,806$
Exhibit A-10
Town of Westlake
Statement of Fiduciary Net Position
Agency Fund
September 30, 2020
The Notes to the Financial Statements are an integral part of this statement.
36
PID Agency
Fund
ASSETS
Restricted cash and cash equivalents 2,097,911$
Total Assets 2,097,911$
LIABILITIES
Liability to bond holders 2,097,911$
Total Liabilities 2,097,911$
Town of Westlake Exhibit A-11
Discretely Presented Component Units
Combining Statement of Net Position
September 30, 2020
The Notes to the Financial Statements are an integral part of this statement.
37
Texas Student
Texas Student Housing
Housing Corporation Texas Student
Corporation College Station Housing
Denton Project Project Authority Total
Cash and cash equivalents 385,650$ 403,085$ 3,407,345$ 4,196,080$
Accounts receivable (net of allowance)34,553 15,278 696 50,527
Restricted assets:
Cash and cash equivalents 1,959,384 271,876 - 2,231,260
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 (17,868,855) (17,548,107) - (35,416,962)
Total assets 13,669,573 16,364,179 3,408,041 33,441,793
LIABILITIES
Accounts payable and accrued expenses 138,350 285,477 3,446 427,273
Unearned revenue 158,454 273,651 - 432,105
Accrued interest payable 10,200,536 27,741,345 - 37,941,881
Bonds payable 21,007,556 28,205,000 - 49,212,556
Total liabilities 31,504,896 56,505,473 3,446 88,013,815
NET POSITION (DEFICIT)
Net investment in capital assets (9,717,570) (12,531,060) - (22,248,630)
Unrestricted (8,117,753) (27,610,234) 3,404,595 (32,323,392)
Total net position (deficit)(17,835,323)$ (40,141,294)$ 3,404,595$ (54,572,022)$
LIABILITIES AND NET POSITION
ASSETS
Town of Westlake
Discretely Presented Component Units
Combining Statement of Activities
For the Fiscal Year Ended September 30, 2020
The Notes to the Financial Statements are an integral part of this statement.
38
Charges for Operating Grants Capital Grants
Functions/Programs Expenses Services and Contributions and Contributions
Business-type activities:
Texas Student Housing Authority 412,099$ 435,990$ -$ -$
Texas Student Housing Corporation
College Station Project 6,689,950 1,785,725 - -
Denton Project 6,002,109 5,234,602 - -
Total business-type activities 13,104,158 7,456,317 - -
Total component units 13,104,158$ 7,456,317$ -$ -$
GENERAL REVENUES
Interest income
Total general revenues
Change in net position
NET POSITION (DEFICIT), beginning of year
NET POSITION (DEFICIT), end of year
Program Revenues
Exhibit A-12
39
Texas Student
Texas Student Housing
Housing Corporation Texas Student
Corporation College Station Housing
Denton Project Project Authority Total
-$ -$ 23,891$ 23,891$
- (4,904,225) - (4,904,225)
(767,507) - - (767,507)
(767,507) (4,904,225) 23,891 (5,647,841)
(767,507)$ (4,904,225)$ 23,891$ (5,647,841)$
27,834 - 42,449 70,283
27,834 - 42,449 70,283
(739,673) (4,904,225) 66,340 (5,577,558)
(17,095,650) (35,237,069) 3,338,255 (48,994,464)
(17,835,323)$ (40,141,294)$ 3,404,595$ (54,572,022)$
Net (Expense) Revenues and Changes in Net Positions
40
Town of Westlake
Notes to the Financial Statements
41
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 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 all the Texas Student Housing Entities. These reports
may be obtained by contacting the following office.
Texas Student Housing Authority
P.O. Box 93419
Southlake, Texas 76092
Town of Westlake
Notes to the Financial Statements
42
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.
Basis of Presentation
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
43
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 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
44
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.
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.
Public Arts Fund – to account for contributions restricted for public art.
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.
The Town adopts an annual appropriated budget for all governmental funds except capital projects,
Solana PID capital projects, Public Arts, and Westlake Academy Expansion capital projects fund, which
are project-length based budgets. A budgetary comparison schedule has been provided for all
appropriate funds to demonstrate compliance with the budget.
Proprietary Funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund's principal ongoing operations. The principal operating revenues of
the Town's Enterprise Fund are charges to customers for sales and services. Operating expenses for the
Enterprise Fund include the cost of sales and services, administrative expenses, and depreciation on
capital assets. All revenue and expenses not meeting this definition are reported as nonoperating
revenue and expenses.
The Town reports the following major proprietary funds:
Utility Fund – to account for revenues and expenses related to providing water and sewer services to the
general public on a continuing basis.
Cemetery Fund – to account for the operations of the Town's cemetery.
The Town reports the following fiduciary fund:
Solana PID Agency Fund – to account for bond proceeds, assessments, and related debt associated with
bonds issued by the Town as an agent for the Solana public improvement district.
As a general rule, the effect of interfund activity has been eliminated from the government-wide financial
statements. Exceptions to this general rule are charges between the Town's water and wastewater
function and various other functions of the government. Elimination of these charges would distort the
direct costs and program revenue reported for the various functions concerned.
Town of Westlake
Notes to the Financial Statements
45
Amounts reported as program revenues include: 1) charges to customer or applicants for goods, services,
or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions,
including special assessments. Internally dedicated resources are reported as general revenues rather
than as program revenue. Likewise, general revenue includes all taxes.
Assets, Liabilities, Deferred Inflows/Outflows of Resources, 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, 2020.
Town of Westlake
Notes to the Financial Statements
46
Restricted Assets
Certain bond proceeds, as well as certain resources set aside for their repayment, are classified as
restricted assets on the balance sheet because their use is limited by applicable bond covenants.
Inventories and Prepaid Items
Inventories, which are expended as they are consumed, are stated at the lower of cost or market on a
first-in, first-out basis.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items using the consumption method 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
47
Compensated Absences
The Town's policy provides vacation and sick leave to be accrued at the start of employment. Employees
earn 10 days of vacation and 10 days of sick leave between one year and 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.
Unused vacation hours are paid upon termination or retirement at the employee's normal hourly rate.
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.
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.
Town of Westlake
Notes to the Financial Statements
48
In the government-wide financial statements, net position represents the difference between assets and
deferred outflows and liabilities and deferred inflows. 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.
Pensions and Other Post-Employment Benefits (OPEB)
For purposes of measuring the net pension/OPEB and total OPEB liabilities, pension and OPEB related
deferred outflows and inflows of resources and pension and OPEB expense, the Town’s specific
information about its Fiduciary Net Position in the Texas Municipal Retirement System (TMRS) and Teachers
Retirement System (TRS) and additions to/deductions from the Town’s Fiduciary Net Position have been
determined on the same basis as they are reported by TMRS and TRS. 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.
For TMRS, information regarding the Town’s Total Pension Liability and Total OPEB Liability is obtained from
TMRS through reports prepared for the Town by TMRS consulting actuary, Gabriel Roeder Smith &
Company, in compliance with Governmental Accounting Standards Board (GASB) Statement No. 68,
Accounting and Financial Reporting for Pensions, and GASB Statement No. 75, Accounting and Financial
Reporting for Postemployment Benefits Other than Pensions.
For TRS, information regarding the Town’s Total Pension Liability and Total OPEB Liability is obtained from
TRS which is a cost-sharing multi-employer defined benefit plan. Reports prepared are in compliance with
Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial
Reporting for Pensions, and GASB Statement No. 75, Accounting and Financial Reporting for
Postemployment Benefits Other Than Pensions.
Deferred Outflows and Inflows of Resources
In addition to assets, the statement of financial position and/or balance sheet will sometimes report a
separate section for deferred outflows of resources on the Statement of Net Position and Governmental
Fund Balance Sheet. This separate financial statement element, deferred outflows of resources, represents
a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow
of resources (expense/expenditure) until then. The Town has the following items that qualify for reporting
in this category:
Deferred Outflow from Loss on Refunding – these deferred outflows reported at the net position result from
the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred
and amortized over the shorter of the life of the refunded or refunding debt.
Town of Westlake
Notes to the Financial Statements
49
Deferred Outflow/Inflows from Pensions/OPEB – these deferred outflows/inflows reported on the
Statement of Net Position result from pension/OPEB contributions after the measurement date (deferred
and recognized as a reduction of the related liability in the following fiscal year), differences in projected
and actual earnings on pension/OPEB investments (deferred and amortized over a closed five-year
period), and differences between expected and actual experience and/or changes in assumptions
(deferred and amortized over the remaining average service life of participants.)
Deferred Outflow/Inflows from Contributions – these deferred outflows/inflows result from contributions
made or received before time requirement is met. The deferred outflows/inflows from contributions are
eliminated at the Statement of Activities and Net Position.
Deferred Inflows from Unavailable Resources – these deferred inflows result from property tax receivables
not being collected within 60 days of year end. The deferred inflows from unavailable resources are
recorded as revenues on the Governmental-wide Statement of Activities.
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.
Note 2. Cash and Investments
Legal provisions generally permit the Town to invest in certificates of deposit, repurchase agreements,
public funds investment pools, direct obligations of the United States of America or its subdivisions and
state and local government securities.
The Public Funds Investment Act (Government Code Chapter 2256) contains specific provisions in the
areas of investment practices, management reports and establishment of appropriate policies. Among
other things, it requires the Town to adopt, implement, and publicize its investment policy.
That policy must address the following areas: (1) safety of principal and liquidity, (2) portfolio
diversification, (3) allowable investments, (4) acceptable risk levels, (5) expected rates of return,
(6) maximum allowable stated maturity of portfolio investments, (7) maximum average dollar - weighted
maturity allowed based on the stated maturity date for the portfolio, (8) investment staff quality and
capabilities, and (9) bid solicitation preferences for certificates of deposit.
Town of Westlake
Notes to the Financial Statements
50
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 $28,850,957 and the bank balance was
$29,307,755. 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 $6,427,341 and the bank balance
was $6,456,006. 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
$4,196,080 in cash and cash equivalents and $2,231,261 in restricted cash and cash equivalents.
At September 30, 2020, the Town's cash and cash equivalents consist of and are classified in the
accompanying financial statements are follows:
Primary government:
Cash and cash equivalents 28,257,745$
Restricted cash and investments 623,820
Total primary government 28,881,565
Fiduciary funds:
Restricted cash and cash equivalents 2,097,911
Total cash and investments 30,979,476$
Deposits with financial institutions 28,850,957$
Investments 2,128,519
Total cash and investments 30,979,476$
Town of Westlake
Notes to the Financial Statements
51
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 38 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, 2020, the Town's investments were as follows:
Weighted
Carrying Average
Amount Fair Value Maturity (days)
TexPool 207$ 207$ 38 days
Mutual funds 2,128,312 2,128,312 N/A
Total 2,128,519$ 2,128,519$
Investment Type
Disclosures Relating to Credit Risk
This is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This
is measured by the assignment of a rating by a nationally recognized statistical rating organization.
Presented below is the minimum rating required by (where applicable) the Public Funds Investment Act,
the Town's investment policy, or debt agreements, and the actual rating as of year-end for each
investment type.
Minimum Rating
Carrying Fair Legal as of
Primary government Amount Value Rating Year-end
Investments:
TexPool 207$ 207$ N/A AAA-m
Mutual funds 2,128,312 2,128,312 N/A A-1
Total 2,128,519$ 2,128,519$
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.
Town of Westlake
Notes to the Financial Statements
52
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, 2020, 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.
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.
Town of Westlake
Notes to the Financial Statements
53
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
2020 (Level 1) (Level 2) (Level 3) Investments (Days)
Investments not Subject
to Fair Value:
Investment Pools:
TexPool 207$ -$ -$ -$ 0.01 %38
Investments by Fair Value Level:
Mutual Funds 2,128,312 2,128,312 - - 99.99% N/A
Total Value 2,128,519$ 2,128,312$ -$ -$
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.
During the year ended September 30, 2020, 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, $241,480 of restricted cash represents customer deposits received for water
and sewer usage that are refundable upon termination of service; $101,938 represents remaining Texas
Water Development Board bond proceeds to be spent on the Fort Worth waterline; and $50,000 of
restricted cash represents a contribution restricted for cemetery improvements.
Discretely Presented Component Units
Within the discretely presented component units, the $2,231,260 in restricted cash and cash equivalents
represents funds held for debt service.
Town of Westlake
Notes to the Financial Statements
54
Note 3. Receivables
Governmental activities receivable balance consists of the following as of September 30, 2020:
Debt Total
Westlake Service Nonmaj or Governmental
General Academy Fund Fund Funds
Receivables:
Sales tax 749,299$ -$ -$ 249,766$ 999,065$
Property tax 7,757 - 2,556 - 10,313
Other taxes 4,209 - - - 4,209
Franchise tax 215,108 - - - 215,108
Other 139,891 437,260 - - 577,151
Gross receivables 1,116,264 437,260 2,556 249,766 1,805,846
Less: allowance
for uncollectibles (65,053) - (639) - (65,692)
Net total receivables 1,051,211$ 437,260$ 1,917$ 249,766$ 1,740,154$
Governmental Funds
Business-type receivables balance consists of the following as of September 30, 2020:
Utility Cemetery
Fund Fund Total
Receivables:
Accounts 1,027,342$ -$ 1,027,342$
Gross receivables 1,027,342 - 1,027,342
Less: allowance
for uncollectibles - - -
Net total receivables 1,027,342$ -$ 1,027,342$
Business-Type Activities
Town of Westlake
Notes to the Financial Statements
55
Note 4. Capital Assets
Capital asset activity for the year ended September 30, 2020, was as follows:
Primary Government
Beginning Ending
Balance Increases Decreases Transfers Balance
Governmental activities:
Capital assets, not being depreciated:
Land 12,446,059$ -$ -$ -$ 12,446,059$
Construction in pro gress 771,239 683,894 - - 1,455,133
Total assets not being depreciated 13,217,298 683,894 - - 13,901,192
Capital assets, being depreciated:
Capital improvements 34,114,192 179,984 - - 34,294,176
Buildings 42,974,724 314,983 - - 43,289,707
Machinery and equipment 5,047,482 186,286 (23,000) - 5,210,768
Information systems and software 831,657 65,673 - - 897,330
Total capital assets being depreciated 82,968,055 746,926 (23,000) - 83,691,981
Less accumulated depreciation:
Capital improvements (6,366,740) (893,496) - - (7,260,236)
Buildings (8,037,673) (881,819) - - (8,919,492)
Machinery and equipments (3,782,419) (407,275) 23,000 - (4,166,694)
Information systems and software (315,476) (183,891) - - (499,367)
Total accumulated depreciation (18,502,308) (2,366,481) 23,000 - (20,845,789)
Total capital assets being depreciated 64,465,747 (1,619,555) - - 62,846,192
Governmental activities
capital assets, net 77,683,045$ (935,661)$ -$ -$ 76,747,384$
Town of Westlake
Notes to the Financial Statements
56
Beginning Ending
Balance Increases Decreases Transfers Balance
Business-type activities:
Capital assets, not being depreciated:
Construction in pro gress 329,030$ -$ -$ -$ 329,030$
Total assets not being depreciated 329,030 - - - 329,030
Capital assets, being depreciated:
Capital improvements 14,899,416 - - - 14,899,416
Wastewater treatment rights 635,199 - - - 635,199
Machinery and equipment 3,560,780 149,834 - - 3,710,614
Total capital assets being depreciated 19,095,395 149,834 - - 19,245,229
Less accumulated depreciation:
Capital improvements (5,889,789) (363,594) - - (6,253,383)
Wastewater treatment rights (608,834) (26,365) - - (635,199)
Machinery and equipment (2,283,935) (141,652) - - (2,425,587)
Total accumulated depreciation (8,782,558) (531,611) - - (9,314,169)
Total capital assets being depreciated 10,312,837 (381,777) - - 9,931,060
Business-type activities
capital assets, net 10,641,867$ (381,777)$ -$ -$ 10,260,090$
Depreciation was charged to departments of the primary government as follows:
Governmental activities:
General government 936,226$
Public safety 630,275
Public works 799,980
Total depreciation expense - governmental activities 2,366,481$
Business-type activities:
Water and sewer 531,611$
Town of Westlake
Notes to the Financial Statements
57
A summary of discretely presented component units' capital assets at August 31, 2020 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 (15,780,012) (856,833) - (16,636,845)
Furniture and fixtures (1,223,560) (8,450) - (1,232,010)
Total accumulated depreciation (17,003,572) (865,283) - (17,868,855)
Total capital assets being depreciated 9,955,269 (865,283) - 9,089,986
Capital assets, net 12,155,269$ (865,283)$ -$ 11,289,986$
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 (13,334,060) (896,177) - (14,230,237)
Furniture and fixtures (3,283,959) (33,911) - (3,317,870)
Total accumulated depreciation (16,618,019) (930,088) - (17,548,107)
Total capital assets being depreciated 13,704,431 (930,088) - 12,774,343
Capital assets, net 16,604,028$ (930,088)$ -$ 15,673,940$
Town of Westlake
Notes to the Financial Statements
58
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.
A summary of long-term debt transactions for the year ended September 30, 2020, was as follows:
Amount
Beginning Ending Due within
Balance Additions Reductions Balance One year
Governmental activities:
General obligation bonds
other obligations 32,171,250$ -$ (1,613,350)$ 30,557,900$ 1,651,350$
Unamortized bond premium 1,379,285 - (99,812) 1,279,473 -
Notes payable 165,050 - (36,677) 128,373 36,677
Capital leases - 585,623 (187,611) 398,012 195,108
Compensated absences 531,355 194,622 (357,738) 368,239 36,824
Total OPEB liability - TMRS 48,524 25,031 - 73,555 -
Net OPEB liability - TRS 2,950,588 - (119,869) 2,830,719 -
Net pension liability - TMRS 1,550,870 - (267,960) 1,282,910 -
Net pension liability - TRS 1,489,525 13,389 - 1,502,914 -
Total governmental activities 40,286,447$ 818,665$ (2,683,017)$ 38,422,095$ 1,919,959$
Amount
Beginning Ending Due within
Balance Additions Reductions Balance One year
Business-type activities:
Certificates of obligation 2,999,750$ -$ (108,650)$ 2,891,100$ 113,650$
Contractual obligations 4,800,109 - (120,165) 4,679,944 4,679,944
Unamortized bond premium 27,537 - (1,172) 26,365 -
Compensated absences 92,056 46,032 (69,057) 69,031 6,903
Total OPEB liability - TMRS 5,960 3,075 - 9,035 -
Net pension liability - TMRS 190,491 - (32,913) 157,578 -
Total business-type activities 8,115,903$ 49,107$ (331,957)$ 7,833,053$ 4,800,497$
The Town’s accrued interest for general obligation bonds reported in governmental activities was
$132,442 and certificates of obligation reported in business-type activities for $32,977.
Town of Westlake
Notes to the Financial Statements
59
General Obligation Bonds, Tax Notes and Certificates of Obligation
General obligation bonds, tax notes and certificates of obligation are as follows as of September 30, 2020:
Final Business-
Maturity Interest Rates Governmental Type
$2,095,000 Combination Tax and Revenue
Certificates of Obligation, Series 2011 2031 3.25% 1,303,000$ -$
$7,375,000 General Obligation Refunding Bonds,
Series 2011 2028 2.0-4.0% 4,215,000 -
$9,320,000 Certificates of Obligation, Series 2013 2043 2.0-4.0% 7,128,900 881,100
$2,200,000 General Obligation Refunding Bonds,
Series 2013 2028 2.0-2.5% 1,225,000 -
$9,180,000 Certificate of Obligation Bonds,
Series 2016 2046 2.0-5.0% 8,565,000 -
$5,795,000 General Obligation Refunding Bonds,
Series 2017 2032 2.0-5.0% 5,700,000 -
$1,530,000 Tax Notes, Series 2017 2024 2.0-5.0% 901,000 -
$1,910,000 General Obligation Refunding Bonds,
Series 2014 2032 2.0-5.0% 1,520,000 -
$2,100,000 Certificates of Obligation, Series 2018 2028 2.0-2.7% - 2,010,000
30,557,900$ 2,891,100$
General Obligations Bonds, Tax Notes, and
Certificates of Obligation
Debt service requirements of certificates of obligation and general obligations to be retired from
governmental funds are as follows:
Total
Principal Interest Requirements
1,651,350$ 1,037,343$ 2,688,693$
1,699,250 992,212 2,691,462
1,742,700 945,371 2,688,071
1,796,600 894,734 2,691,334
1,594,600 841,342 2,435,942
8,819,200 3,328,520 12,147,720
5,805,000 1,819,199 7,624,199
3,532,700 1,129,867 4,662,567
3,416,500 402,014 3,818,514
500,000 10,000 510,000
30,557,900$ 11,400,602$ 41,958,502$ Total
Year Ending
September 30,
2021
2022
2023
2024
2026-2030
2031-2035
2025
2036-2040
2041-2045
2046
Town of Westlake
Notes to the Financial Statements
60
Debt service requirements of certificates of obligation to be retired from proprietary funds as follows:
Total
Principal Interest Requirements
113,650$ 86,717$ 200,367$
114,750 84,051 198,801
120,300 81,173 201,473
121,400 78,075 199,475
121,400 74,884 196,284
703,800 319,064 1,022,864
830,000 198,879 1,028,879
617,300 69,238 686,538
148,500 9,086 157,586
2,891,100$ 1,001,167$ 3,892,267$ Total
2023
2025
2026-2030
2024
2036-2040
2041-2043
2031-2035
September 30,
2022
Year Ending
2021
Notes Payable
In March 2014, the Town received a $366,774 loan from Bennett Benner Pettit, the proceeds of which were
used to fund a portion of the Westlake Academy expansion project. The terms of the note call for ten
annual payments at 0% interest.
Note
September 30, Payments
36,677
36,677
36,677
18,342
128,373$
2024
Total
2022
2023
2021
Year Ending
Capital Leases
In 2020, the Academy acquired equipment and software with a historical cost of $585,623 under a capital
lease. The following schedule shows the future minimum payments under the lease as of August 31, 2020:
Annual
Principal Interest Lease Payments
195,108$ 12,814$ 207,922$
202,904 5,017 207,921
398,012$ 17,831$ 415,843$
Year Ending
August 31,
2021
2022
Total
Town of Westlake
Notes to the Financial Statements
61
Contractual Obligations
Proprietary funds contractual obligations as of September 30, 2020 are as follows:
Business-
Maturity Interest Rate Type
Limited pledge contractual obligation:
Dove Road Water Line and
West Pump Station 2028 6.75% 4,679,944$
Contractual Obli gations
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%. The last payment to the City of Keller was made in fiscal year 2020.
Dove Road Water Line and West Pump Station - In April 2000, the Town approved an agreement with the
Hillwood Development Corporation (Hillwood). In the agreement, Hillwood agreed to bear all initial costs
for the design, engineering and constructions of the Dove Road Water Line and the West Pump Station
that will service the residents of the Town. The Town agreed to reimburse Hillwood for the cost of the
project upon completion and the Town's acceptance of the project, which occurred in June 2001, solely
from a $.25 charge per 1,000 gallons of usage. The Town further agreed to deposit debt service revenue
of $.25 per 1,000 gallons of usage collected from Town residents to fund its repayment to Hillwood. Debt
service revenue will be allocated between Hillwood service area and Town service area by 52% and 48%,
respectively and deposited into two separate debt service funds that will result in debt service revenue
to pay the respective share of the construction cost. The Town recorded a limited pledge contractual
obligation of $4,679,944 for the project cost based upon the terms of the agreement, which requires 239
monthly principal and interest payments to Hillwood, at an interest rate of 6.75%. If the Town collects
insufficient funds to pay current interest on the debt, the interest payment may be deferred. No portion
of debt payments will be applied to the principal component, until all current and deferred interest is fully
paid. The obligation of the Town to pay the purchase price and interest thereon is not a general obligation
of the Town but is a limited recourse obligation payable solely from debt service revenue.
The schedule of future payments by the Town under these agreements is as follows:
Total
Principal Interest Requirements
-$ 10,189,745$ 10,189,745$
4,679,944 768,278 5,448,222
4,679,944$ 10,958,023$ 15,637,967$
Past Due
Total
Year Ending
September 30,
2021
Town of Westlake
Notes to the Financial Statements
62
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, 2020, 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 19,225,000$ -$ (1,085,000)$ 18,140,000$ 1,160,000$
2001 B Bonds 3,240,000 - - 3,240,000 1,600,000
Less discount on bonds (409,929) - 37,485 (372,444) -
Total 22,055,071$ -$ (1,047,515)$ 21,007,556$ 2,760,000$
The Bonds are payable solely from the revenues generated by the Denton Property and are secured by
the revenues pledged and assigned under the terms of the Trust Indenture. The Town of Westlake does
not have any liability for the payment of the bonds as the bonds are non-recourse to both the Town of
Westlake and Texas Student Housing Authority. Interest rates on the bonds range from 5.00% to 11.00%
and are payable semi-annually on July 1 and January 1 of each year thereafter.
At August 31, 2020, 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, 2020. Upon
certain events of default either the trustee, or owners of not less than 25% in aggregate principal of the
bonds then outstanding, may declare the principal and all interest then due to be immediately due and
payable.
Town of Westlake
Notes to the Financial Statements
63
The debt service requirements of the bonds are as follows:
Total
Principal Interest Requirements
1,510,000$ 9,961,914$ 11,471,914$
1,250,000 1,431,730 2,681,730
1,330,000 1,343,530 2,673,530
1,430,000 1,248,483 2,678,483
1,535,000 1,145,963 2,680,963
1,645,000 1,035,835 2,680,835
10,185,000 3,220,028 13,405,028
2,495,000 181,283 2,676,283
21,380,000$ 19,568,766$ 40,948,766$
Year Ending
2026-2030
2025
August 31,
Past Due
2022
2024
2023
2021
2031
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 assi gnment of rents:
due November 1, 2039 8.00% 28,205,000$
Lender/Security/Due/Date
The following is a summary of long-term debt transactions of the Project for the year ended August 31,
2020:
Amounts
Beginning Ending Due Within
Balance Increases Decreases Balance One Year
Revenue
Certificates 28,205,000$ -$ -$ 28,205,000$ 3,215,800$
Town of Westlake
Notes to the Financial Statements
64
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, 2020 are as follows:
Year Ending
August 31, Principal Interest Total
2,385,800$ 27,285,485$ 29,671,285$
830,000 1,530,858 2,360,858
895,000 1,464,122 2,359,122
495,000 1,410,935 1,905,935
530,000 1,372,495 1,902,495
570,000 1,331,160 1,901,160
3,575,000 5,912,733 9,487,733
5,155,000 4,275,367 9,430,367
13,769,200 1,854,218 15,623,418
Total 28,205,000$ 46,437,373$ 74,642,373$
2021
2022
2036-2040
Past Due
2023
2024
2025
2026-2030
2031-2035
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, 2020.
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 The Bank of New York (the Trustee) for
the purpose of determining that each class is paid in accordance with the private placement
memorandum.
At August 31, 2020, 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 $289,048 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 $5,818 and $1,917
of unavailable property taxes in the general fund and debt service fund, respectively. The unavailable
contribution of $1,777 reported in the Westlake Academy fund is from the Town (general fund) with a time
constraint to be used for fiscal year 2021.
Town of Westlake
Notes to the Financial Statements
65
Note 7. Interlocal Agreement with the City of Southlake
In August 1995, the Town entered into an agreement with the Town of Southlake to allow the Town to
utilize capacity in a sewer line and to set forth their respective rights and obligations with respect to the
sewer line owned by the City of Southlake. The Town is obligated to share in the cost of construction,
operation and maintenance of the sewer line. The sewer line was constructed in 2000. Additionally, the
Town must pay the Town of Southlake all transportation, treatment and related costs allocable to the
metered flow of sewage from the Town into the sewer line.
Note 8. Federal and State Program Revenues
The Town received financial assistance from various federal and state governmental agencies in the form
of grants for Westlake Academy. The disbursement of funds received under these programs generally
requires compliance with terms and conditions specified in the grant agreements and are subject to audit
by the grantor agencies. Any unallowed disbursement resulting from such audits becomes a liability of
the Town. In the opinion of the Town management, no material refunds will be required as a result of
unallowed disbursements (if any) by the grantor agencies. Sources of federal and state program revenues
for the year ended September 30, 2020, were as follows:
Westlake
Academy
Federal program revenues:
U.S. Department of Education - Passed
through State Department of Education
Total federal program revenues 137,910$
State program revenues:
State Department of Education 8,011,061$
Source
Note 9. Interfund Balances and Transactions
Interfund receivables and payables at September 30, 2020, were as follows:
Due from Due to
Other Funds Other Funds
General fund 249,766$ -$
Nonmaj or governmental funds:
4B Economic Development Fund - 249,766
249,766$ 249,766$
The 4B Economic Development Corporation Fund amount of $249,766 payable to the General Fund is
related to sales tax.
Inter-fund transfers are reported in the governmental funds and proprietary fund financial statements. In
the government-wide statements, inter-fund transfers are eliminated within the governmental activities
column and business-type column, as appropriate.
Town of Westlake
Notes to the Financial Statements
66
Individual fund transfers for fiscal year 2020 were as follows:
Transfer out Transfer in Amount Purpose
General Fund Debt Service Fund 272,089$ Debt service payments
Capital projects fund Nonmajor Governmental 100,000 Accumulate funds for expenditures
Westlake Academy
Expansion Capital projects fund 100,000 For Westlake Academy capital projects
Nonmajor Governmental Westlake Academy
Expansion 280,000 For Westlake Academy capital projects
Nonmajor Governmental Debt Service Fund 1,844,725 Debt service payments
Utility Fund General Fund 77,158 Fort Worth impact revenue
2,673,972$
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, 2020 was $1,201,671.
Note 11. Town of Westlake and Westlake Academy Pension Plans
The Town provides for two pension plans; one provides for defined retirement pension benefits to the
Town’s employees, Texas Municipal Retirement System - TMRS, and the other provides defined retirement
pension benefits to teachers at Westlake Academy, Teacher Retirement System of Texas (TRS). Both plans
are described in detail below. Aggregate amounts for the two pension plans are as follows:
TMRS TRS Total
Pension Liability 1,440,488$ 1,502,914$ 2,943,402$
Deferred outflows of resources 689,373 955,246 1,644,619
Deferred inflows of resources 290,909 268,967 559,876
Pension Expense 639,541 1,192,380 1,831,921
TMRS Plan Description
The Town participates as one of 888 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 by
writing to TMRS, P.O. Box 149153, Austin, Texas, 78714-9153 or by calling 800-924-8677. In addition, the
report is available on TMRS’ website at www.tmrs.com.
All eligible employees of the Town are required to participate in TMRS.
Town of Westlake
Notes to the Financial Statements
67
TMRS Benefits Provided
TMRS provides retirement, disability, and death benefits. Benefit provisions are adopted by the governing
body of the Town, 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 Town-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.
TMRS Employees Covered By Benefit Terms
At the December 31, 2019 valuation and measurement date, the following employees were covered by
the benefit terms:
Inactive employees of beneficiaries currently receiving benefits 13
Inactive employees entitled to but not yet receiving benefits 27
Active employees 45
85
TMRS Contributions
The contribution rates for employees in TMRS are either 5%, 6%, or 7% of employee gross earnings, and the
Town matching percentages are either 100%, 150%, or 200%, both as adopted by the governing body of
the Town. Under the state law governing TMRS, the contribution rate for each Town 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 11.80% and 11.77% in calendar years 2019 and 2020,
respectively. The Town’s contributions to TMRS for the year ended September 30, 2020, were $478,059,
and were equal to the required contributions.
TMRS Net Pension Liability
The Town’s Net Pension Liability (NPL) was measured as of December 31, 2019, and the Total Pension
Liability (TPL) used to calculate the Net Pension Liability was determined by an actuarial valuation as of
that date.
TMRS Actuarial Assumptions
The Total Pension Liability in the December 31, 2019 actuarial valuation was determined using the
following actuarial assumptions:
Inflation 2.5% per year
Overall payroll growth 3.5% to 11.5%, including inflation
Investment Rate of Return 6.75%, net of pension plan investment expense, including inflation
Amortization method: Level percentage of payroll, closed
Actuarial Cost Method: Entry Age Normal
Town of Westlake
Notes to the Financial Statements
68
Salary increases were based on a service-related table. Mortality rates for post-retirement were based on
the 2019 Municipal Retirees of Texas Mortality Tables. The rates are projected on a fully generational basis
with the scale UMP. Mortality rates for pre-retirement were based on PUB(10) mortality tables, with the
Public Safety table used for males and the General Employee table used for females. The rates are
projected on a fully generational basis with scale UMP.
Actuarial assumptions used in the December 31, 2019, valuation were developed primarily from the
actuarial investigation of the experience of TMRS over the four-year period from December 31, 2014 to
December 31, 2018. They were first adopted in 2019 and first used in the December 31, 2019 actuarial
valuations.
The pension plan’s policy in regard to the allocation of invested assets is established and may be
amended by the Board. Plan assets are managed on a total return basis with an emphasis on both capital
appreciation and 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). 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% 4.30 %
International Equity 17.5% 6.10%
Core Fixed Income 10.0% 1.00 %
Non-Core Fixed Income 20.0% 3.39 %
Real Return 10.0% 3.76 %
Real Estate 10.0% 4.44%
Absolute Return 10.0% 3.56 %
Private Equity 5.0%7.75%
Total 100.0%
Town of Westlake
Notes to the Financial Statements
69
TMRS 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 remain at the
current 7% 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.
TMRS Changes in the Net Pension Liability
Total Plan Net
Pension Fiduciary Pension
Liability Net Position Liability
(a)(b)(a) - (b)
Balance at 12/31/2018 8,183,993$ 6,442,632$ 1,741,361$
Chan ges for the year:
Service Cost 651,255 - 651,255
Interest 570,598 - 570,598
Chan ge of benefit terms - - -
Difference between expected and
actual experience 131,635 - 131,635
Chan ges of assumptions 89,534 - 89,534
Contributions - employer - 470,903 (470,903)
Contributions - employee - 279,349 (279,349)
Net investment income - 999,440 (999,440)
Benefit payments, including refunds
of employee contributions (112,642) (112,642) -
Administrative expense (5,628) 5,628
Other changes - (169) 169
Net Changes 1,330,380 1,631,253 (300,873)
Balance at 12/31/19 9,514,373$ 8,073,885$ 1,440,488$
Increase (Decrease)
Net Pension Liability as a Percentage of Covered Payroll is 36.36%.
Town of Westlake
Notes to the Financial Statements
70
TMRS 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 2,921,522$ 1,440,488$ 222,317$
TMRS 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.
TMRS Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to
Pensions
For the year ended September 30, 2020, the Town recognized pension expense of $639,541.
At September 30, 2020, the Town reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Difference between
expected and actual
economic experience 250,080$ 51,404$
Changes in actuarial
assumptions 87,548 -
Difference between
projected and actual
investment earnings - 239,505
Contributions subsequent to
the measurement date 351,745 -
Total 689,373$ 290,909$
$351,745 reported as deferred outflows of resources related to pensions resulting from contributions
subsequent to the measurement date will be recognized as a reduction of the net pension liability for the
year ending September 30, 2021.
Town of Westlake
Notes to the Financial Statements
71
Other amounts reported as deferred outflows and inflows of resources related to pensions will be
recognized in pension expense as follows:
Year ended Net Deferred
September 30, Outflows (Inflows)
2021 44,766$
2022 (1,262)
2023 66,740
2024 (69,969)
2025 6,444
Total 46,719$
Defined Benefit Pension Plan – TRS
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.
TRS 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.
TRS 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 above.
Town of Westlake
Notes to the Financial Statements
72
TRS 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.
Employee contribution rates are set in state statute, Texas Government Code 825.402. The Texas Pension
Reform Bill (Senate Bill 12) of the 86th Texas Legislature amended Texas Government Code 825.402 for
member contributions and increased both employee and employer contribution rates for plan years 2020
through 2025.
2019 2020
Member 7.70% 7.70%
Non-employer contributing entity (State) 6.80% 7.50%
Employers (District) 6.80% 7.50%
Employers (District - Non-OASDI)* 1.50% 1.50%
2019 Employer contributions 230,148$
2019 Member contributions 462,758$
2019 NECE on-behalf contributions 354,995$
Contribution rates
*SB12 requires an increase in employer contributions by public school districts, charter
schools and regional education service centers. Prior to SB12 only those employers not
participating in social security were required to pay a 1.5% contribution (Non-OASDI
surcharge). Beginning September 1, 2019, all employers are required to pay the Public
Education Employer contribution irrespective of participation in social security.
Contributors to the plan include members, employers and the State of Texas as the only non-employer
contributing entity. 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.
On 1.5% of covered payroll. This contribution, known as the Public Education Employer
Contribution, replaced the non-OASDI surcharge that was in effect until 2019.
Town of Westlake
Notes to the Financial Statements
73
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.
TRS Actuarial Assumptions
The total pension liability in the August 31, 2019 actuarial valuation was determined using the following
actuarial assumptions:
Valuation Date August 31, 2018 rolled forward to
August 2019
Actuarial Cost Method Individual Entry Age Normal
Asset Valuation Method Market Value
Single Discount Rate 7.25%
Long-term expected Investment Rate of Return* 7.25%
Municipal bond rate as of August 2018 2.63%. Source for the rate is the fixed
Income Market Data/Yield Curve/Date
Municipal Bonds with 20 Years to maturity
that include only federally tax-exempt
Municipal bonds as reported in Fidelity
Index’s “20-Year Municipal GO AA Index”
Inflation 2.30%
Salary increases including inflation 3.50% to 9.50% includes inflation
Ad hoc post-employment benefit changes None
Active mortality rates Based on 90% of the RP 2014 Employing
Mortality Tables for males and females
with full generational mortality. The post-
retirement mortality rates for healthy lives
were based on the 2018 TRS of Texas
Health Pensioner Mortality Tables with full
Generational projection using the ultimate
Improvement rates from the most recently
Published projective scale U-MP.
The actuarial methods and assumptions are primarily based on a study of actual experience for the
four-year period ending August 31, 2017 and adopted on September 24, 2018.
Town of Westlake
Notes to the Financial Statements
74
TRS Discount Rate
The discount rate used to measure the total pension liability was 7.25%. The single discount rate was based
on the expected rate of return on pension plan investments of 7.25% and a municipal bond rate of 2.63%.
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
sufficient to finance the benefit payments until the year 2069. As a result, the long-term expected rate of
return on pension plan investments was applied to projected benefit payments through the year 2069,
and the municipal bond rate was applied to all benefit payments after that date. 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. 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, 2019 are summarized below:
Long-term
Expected
Portfolio
2019 PY Target Net Target Real Rate of
Allocation* Allocation** Return
***
Global Equity
U.S. 18% 18.0% 6.4%
Non-U.S. Developed 13% 13.0% 6.3%
Emerging Markets 9% 9.0% 7.3%
Directional Hedge Funds 4% 0.0% 0.0%
Private Equity 13% 14.0% 8.4%
Stable Value
U.S. Treasuries 11% 16.0% 3.4%
Absolute Return 4% 5.0% 4.5%
Stable Value Hedge Funds 0% 0.0% 0.0%
Cash 0% 0.0% 0.0%
Real Return
Global Inflation Linked Bonds 3% 0.0% 0.0%
Real Assets 14% 16.0% 8.5%
Ener gy and Natural Resources 5%6.0%7.3%
Commodities 0% 0.0% 0.0%
Risk Parity
Risk Parity 5% 8.0% 5.8%/6.5% ****
Asset Allocation Leverage 2.5%
Cash 1% 2.0%
Asset Allocat ion Leverage0%-6.0%2.7%
Total 100.0% 7.2%
Asset Class
* FY 2019 Target Allocation based on the Strategic Asset Allocation dated 10/1/2018
** New Target allocation based on the Strategic Asset Allocation dated 10/1/2019
*** 10-Year annualized geometric nominal returns include the real rate of return and inflation of 2.1%
**** New Target Allocation groups Government Bonds within the stable value allocation. This include global sovereign nominal and
inflation-linked bonds
Town of Westlake
Notes to the Financial Statements
75
TRS 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 (7.25%) in measuring the 2019 Net Pension
Liability.
1% Decrease in Discount 1% Increase in
Discount Rate (6.25%) Rate (7.25%) Discount Rate (8.25%)
Academy's proportionate share
of the TRS net pension liability 2,310,197$ 1,502,914$ 848,859$
TRS Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions
At August 31, 2020, the Academy reported a liability of $1,502,914 for its proportionate share of the TRS’s
net pension liability. This liability reflects a reduction for State pension support provided to the Academy.
The amount recognized by the Academy as its proportionate share of the net pension liability, the related
State support, and the total portion of the net pension liability that was associated with the Academy
were as follows:
Academy's proportionate share of the collective net pension liability 1,502,914$
State's proportionate share that is associated with Academy 5,272,547
6,775,461$
The net pension liability was measured as of August 31, 2018 and rolled forward to August 31, 2019 and
the total pension liability used to calculate the net pension liability was determined by an actuarial
valuation as August 31, 2018 rolled forward to August 31, 2019. 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, 2018 thru August 31, 2019.
At August 31, 2019, the employer’s proportion of the collective net pension liability was 0.0028912% which
was an increase of 0.00001851% from its proportion measured as of August 31, 2018.
TRS Changes since the Prior Actuarial Valuation
The following were changes to the actuarial assumptions or other inputs that affected measurement of
the total pension liability since the prior measurement period.
The single discount rate as of August 31, 2018 was a blended rate of 6.907% and that has changed
to the long-term rate of return of 7.25% as of August 31, 2019.
With the enactment of Senate Bill 3 by the 2019 Texas Legislature, an assumption has been made
about how this would impact future salaries. It is assumed that eligible active members will each
receive a $2,700 increase in plan year 2020.
For the year ended August 31, 2019, the Academy recognized pension expense of $1,192,380 and
revenue of $828,243 for support provided by the State.
Town of Westlake
Notes to the Financial Statements
76
At August 31, 2020, the Academy reported its proportionate share of the TRS’s deferred outflows of
resources and deferred inflows of resources related to pensions from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Difference between expected and
actual economic experience 6,314$ 52,184$
Changes in actuarial assumptions 466,278 192,688
Changes in proportionate share 237,415 24,095
Difference between projected and
actual investment earnings 15,091 -
Contributions paid to TRS
subsequent to the measurement
date 230,148 -
Total 955,246$ 268,967$
The $230,148 reported as a deferred outflow of resources resulting from Academy contributions made
subsequent to the measurement date will be recognized as a reduction of the net pension liability in the
year ending August 31, 2021.
The other amounts of the employer’s balances of deferred outflows and inflows of resources related to
pensions will be recognized in pension expense as follows:
Year Ended Net Deferred
Aug. 31, Outflows (Inflows)
2021 143,456$
2022 120,512
2023 86,421
2024 83,164
2025 32,429
Thereafter (9,851)
Total 456,131$
Town of Westlake
Notes to the Financial Statements
77
Note 12. Other Post-Employment Benefits (OPEB)
The Town provides for two other post-employment benefit (OPEB) plans; one provides for
postemployment health insurance benefits for teachers at Westlake Academy through a multiple-
employer defined benefit medical plan Texas Public School Retired Employees Group Insurance Program
(TRS-Care), and the other is the Texas’ Municipal Retirement System Supplemental Death Benefits Fund
(TMRS-SDBF), a single employer defined benefit OPEB plan for the Town employees. Both plans are
described in detail below. Aggregate amounts for the two OPEB plans are as follows:
TMRS
SDBF TRS-Care Total
OPEB Liability 82,590$ 2,830,719$ 2,913,309$
Deferred outflows of resources 25,295 397,462 422,757
Deferred inflows of resources 4,928 1,224,611 1,229,539
OPEB Expense 11,524 187,014 198,538
TMRS-SDBF Plan Description
Texas Municipal Retirement System (“TMRS”) administers a defined benefit group-term life insurance plan
known as the Supplemental Death Benefits Fund (“SDBF”). This is a voluntary program in which
participating member cities may elect, by ordinance, to provide group-term life insurance coverage for
their active members, including or not including retirees. Employers may terminate coverage under and
discontinue participation in the SDBF by adopting an ordinance before November 1 of any year to be
effective the following January 1. The Town has elected to participate in the SDBF for its active members
including retirees. As the SDBF covers both active and retiree participants, with no segregation of assets,
the SDBF is considered to be an unfunded single-employer OPEB plan (i.e. no assets are accumulated in
a trust that meets the criteria in paragraph 4 of GASB Statement No. 75) for Town reporting.
TMRS-SDBF Benefits Provided
The death benefit for active employees provides a lump-sum payment approximately equal to the
employee’s annual salary (calculated based on the employee’s actual earnings, for the 12-month period
preceding the month of death). The death benefit for retirees is considered an other postemployment
benefit (“OPEB”) and is a fixed amount of $7,500.
At the December 31, 2019 valuation and measurement date, the following employees were covered by
the benefit terms:
Inactive employees currently receiving benefits 8
Inactive employees entitled to but not yet receiving benefits 4
Active employees 45
57
Town of Westlake
Notes to the Financial Statements
78
TMRS-SDBF Contributions
The member city contributes to the SDBF at a contractually required rate as determined by an annual
actuarial valuation. The rate is equal to the cost of providing one-year term life insurance. The funding
policy for the SDBF program is to assure that adequate resources are available to meet all death benefit
payments for the upcoming year. The intent is not to pre-fund retiree term life insurance during
employees’ entire careers.
Contributions are made monthly based on the covered payroll of employee members of the
participating member city. The contractually required contribution rate is determined annually for each
Town. The rate is based on the mortality and service experience of all employees covered by the SDBF
and the demographics specific to the workforce of the city. There is a one-year delay between the
actuarial valuation that serves as the basis for the employer contribution rate and the calendar year when
the rate goes into effect. The funding policy of this plan is to assure that adequate resources are available
to meet all death benefit payments for the upcoming year.
The retiree portion of contribution rates to the SDBF for the Town was 0.019% and 0.019% in calendar years
2019 and 2020. The Town’s contributions to the SDBF for the year ended September 30, 2020 were $7,712,
and were equal to the required contributions.
TMRS-SDBF Total OPEB Liability
The Town’s Total OPEB Liability (TOL) was measured as of December 31, 2019 and was determined by an
actuarial valuation as of that date.
TMRS-SDBF Actuarial Assumptions
The Total OPEB Liability in the December 31, 2019 actuarial valuation was determined using the following
actuarial assumptions:
Inflation 2.5% per year
Salary increases 3.5% to 11.5% including inflation
Discount rate 2.75%
Retiree's share of benefit-related costs $0
Salary increases were based on a service-related table. Salary increases were based on a service - related
table. Mortality rates for post-retirement were based on the 2019 Municipal Retirees of Texas Mortality
Tables. The rates are projected on a fully generational basis with scale UMP. Mortality rates for pre-
retirement were based on PUB(10) mortality tables, with the Public Safety table used for males and the
General Employee table used for females. The rates are projected on a fully generational basis with scale
UMP.
Actuarial assumptions used in the December 31, 2019 valuation were developed primarily from the
actuarial investigation of the experience of TMRS over the four-year period from December 31, 2014 to
December 31, 2018. They were first adopted in 2019 and first used in the December 31, 2019 actuarial
valuation.
The discount rate used to measure the Total OPEB Liability was 2.75% and was based on the Fidelity Index’s
“20-Year Municipal GO AA Index” rate as of December 31, 2019.
Town of Westlake
Notes to the Financial Statements
79
TMRS-SDBF Changes in Total OPEB Liability
Total
OPEB
Liability
Balance at 12/31/2018 54,484$
Chan ges for the year:
Service Cost 7,131
Interest on Total OPEB Liability 2,146
Change of benefit terms -
Difference between expected and actual experience 3,831
Changes of assumptions or other inputs 15,394
Benefit payments (396)
Administrative expense -
Other changes -
Net changes 28,106
Balance at 12/31/19 82,590$
Total OPEB Liability as a Percentage of Covered Payroll is 2.08%.
TMRS-SDBF Sensitivity of the Total OPEB Liability to Changes in the Discount Rate
The following presents the total OPEB liability of the Town, calculated using the discount rate of 2.75%, as
well as what the Town’s total OPEB liability would be if it were calculated using a discount rate that is 1
percentage-point lower (1.75%) or 1 percentage-point higher (3.75%) than the current rate:
1% Decrease 1% Increase
in Discount Discount in Discount
Rate (1.75%) Rate (2.75%) Rate (3.75%)
Total OPEB Liability 102,472$ 82,590$ 67,205$
Town of Westlake
Notes to the Financial Statements
80
TMRS-SDBF OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related
to OPEB
For the year ended September 30, 2020, the Town recognized OPEB expense of $11,524. At
September 30, 2020, the Town reported deferred outflows of resources and deferred inflows of resources
related to pensions from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Changes in expected and actual experience 3,332$ 1,550$
Changes in assumptions and other inputs 16,285 3,378
Contributions subsequent to the measurement date 5,678 -
Total 25,295$ 4,928$
The $5,678 reported as deferred outflows of resources related to OPEB resulting from contributions
subsequent to the measurement date will reduce the Total OPEB liability during the year ending
September 30, 2021. The other amounts reported as deferred outflows and inflows of resources related to
OPEB will be recognized in OPEB expense as follows:
Fiscal
Year Ended Net Deferred
Sept. 30, Outflows (Inflows)
2021 2,247$
2022 2,247
2023 2,247
2024 2,247
2025 1,847
Thereafter 3,854
Total 14,689$
TRS-Care Health Care Coverage
During the period ended August 31, 2020, employees of the Academy (a blended component unit of the
Town) who met minimum eligibility requirements were covered by a state-wide health care plan, TRS
Active Care. The Academy's participation in this plan is renewed annually. The Academy paid into the
Plan $367 per month per employee and $292 per month when the employee works less than 30 hours per
week if eligible to enroll in TRS Active Care. Employees, at their option, pay premiums for any coverage
above these amounts as well as for dependent coverage.
The Teacher Retirement System (TRS) manages TRS Active Care. The medical plan is administered by
Aetna, and Caremark Health administers the prescription drug plan. The latest financial information on
the state-wide plan may be obtained by writing to the TRS Communications Department, 1000 Red River
Street, Austin, Texas 78701, by calling the TRS Communications Department at 1-800-223-8778, or by
downloading the report from the TRS Internet website, www.trs.state.tx.us, under the TRS Publications
heading.
Town of Westlake
Notes to the Financial Statements
81
TRS-Care Defined Other Post Employment Benefit Plan
TRS-Care Plan Description
The Academy participates in the Texas Public School Retired Employees Group Insurance Program
(TRS-Care). It is a multiple-employer, cost-sharing defined Other Post-Employment Benefit (OPEB) plan that
has a special funding situation. The plan is administered through a trust by the Teacher Retirement System
of Texas (TRS) Board of Trustees. It is established and administered in accordance with the Texas Insurance
Code, Chapter 1575.
TRS-Care Plan Fiduciary Net Position
Detail information about the TRS-Care’s fiduciary net position is available in the separately-issued
TRS 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.
TRS-Care Benefits Provided
TRS-Care provides a basic health insurance coverage (TRS-Care 1), at no cost to all retirees from public
schools, charter schools, regional education service centers and other educational academies who are
members of the TRS pension plan. Optional dependent coverage is available for an additional fee.
Eligible retirees and their dependents not enrolled in Medicare may pay premiums to participate in
one of two optional insurance plans with more comprehensive benefits (TRS-Care 2 and TRS-Care 3).
Eligible retirees and dependents enrolled in Medicare may elect to participate in one of the
two Medicare health plans for an additional fee. To qualify for TRS-Care coverage, a retiree must have
at least 10 years of service credit in the TRS pension system. The Board of Trustees is granted the authority
to establish basic and optional group insurance coverage for participants as well as to amend benefit
terms as needed under Chapter 1575.052. There are no automatic post-employment benefit changes;
including automatic COLAs.
The premium rates for the optional health insurance are based on years of service of the member. The
schedule below shows the monthly rates for the average retiree with Medicare Parts A&B coverage, with
20 to 29 years of service for the basic plan and the two optional plans.
TRS-Care 2
Medicare Non-Medicare
Retiree* 135$ 200$
Retiree and spouse 529 689
Retiree* and children 468 408
Retiree and family 1,020 999
* or surviving spouse
TRS-Care Plan Premium Rates
Effective September 1, 2019 - December 31, 2019
Town of Westlake
Notes to the Financial Statements
82
TRS-Care Contributions
Contribution rates for the TRS-Care plan are established in state statute by the Texas Legislature, and there
is no continuing obligation to provide benefits beyond each fiscal year. The TRS-Care plan is currently
funded on a pay-as-you-go basis and is subject to change based on available funding. Funding for TRS-
Care is provided by retiree premium contributions and contributions from the state, active employees,
and Academy based upon Academy payroll. The TRS Board of Trustees does not have the authority to
set or amend contribution rates.
Texas Insurance Code, Section 1575.202 establishes the state’s contribution rate which is 1.25% of the
employee’s salary. Section 1575.203 establishes the active employee’s rate which is .65% of pay. Section
1575.204 establishes an employer contribution rate of not less than 0.25 percent or not more than
0.75 percent of the salary of each active employee of the public. The actual employer contribution rate
is prescribed by the Legislature in the General Appropriations Act. The following table shows contributions
to the TRS-Care plan by type of contributor.
2019 2018
Active employee 0.65% 0.65%
Non-employer contribution entity (state) 1.25% 1.25%
Employers/District 0.75% 0.75%
Federal/private funding remitted by Employers 1.25% 1.25%
The contribution amounts for the Academy’s fiscal year 2020 are as follows:
2019 Employer contributions 46,278$
2019 Member contributions 39,064
2019 NECE on-behalf contributions 56,446
In addition, the State of Texas contributed $27,410, $20,423, and $16,866 in 2020, 2019, and 2018,
respectively, for on-behalf payments for Medicare Part D.
In addition to the employer contributions listed above, there is an additional surcharge all TRS employers
are subject to (regardless of whether or not they participate in the TRS Care OPEB program). When
employers hire a TRS retiree, they are required to pay to TRS Care, a monthly surcharge of $535 per retiree.
TRS-Care received supplemental appropriations from the State of Texas as the Non-Employer Contributing
Entity in the amount of $73.3 million in fiscal year 2019.
TRS-Care Actuarial Assumptions
The actuarial valuation was performed as of August 31, 2018. Update procedures were used to roll forward
the total OPEB liability to August 31, 2019. The actuarial valuation of the OPEB plan offered through TRS-
Care is similar to the actuarial valuation performed for the pension plan, except that the OPEB valuation
is more complex.
The following assumptions used for the valuation of the TRS-Care OPEB liability are identical to the
assumptions employed in the August 31, 2019 TRS annual pension actuarial valuation:
Demographic Assumptions Economic Assumptions
Rates of mortality General inflation
Rates of retirement Wage inflation
Rates of termination Salary increase
Rates of disability
Town of Westlake
Notes to the Financial Statements
83
The demographic assumptions were developed in the experience study performed for TRS for the period
ending August 31, 2017.
The initial medical trend rates were 10.25% for Medicare retirees and 7.50% for non-Medicare retirees.
There was an initial prescription drug trend rate of 10.25% for all retirees. The initial trend rates decrease to
an ultimate trend rate of 4.50% over a period of 13 years.
Valuation date
Actuarial cost method
Inflation 2.30%
Discount Rate
Aging factors
Election rates Retirement; 65% participation prior to age 65 and
Expenses Third-party administrative expenses related to the
delivery of health care benefits are included in the
Healthcare trend rates Initial medical trend rates of 107.74 percent and
9.00 percent for Medicare retirees and an initial
medical trend rate of 6.75 percent for Non-medicare
retirees. Initial prescription drug trend rate of 11.00
percent for all retirees. The first year trend increase
for Medicare Advantage (medical) premiums
reflects the anticipated return of the Health Insurer
Fee (HIF) in 2020.
Ad-hoc employment benefit changes None
Fidelity Index’s “20-Year Municipal GO AA Index” as
age- adjusted claims costs.
August 31, 2018, rolled forward to August 31, 2019
Individual entry age normal
Based on plan specific experience Normal
50% after age 65.
2.63%. Source from fixed income municipal bonds
with 20 years to maturity that include only
federal tax-exempt municipal bonds as reported in
In this valuation, the impact of the Cadillac Tax has been calculated as a portion of the trend assumption.
Assumptions and methods used to determine the impact of the Cadillac Tax include:
2018 thresholds of $850/$2,292 were indexed annually by 2.30%
Premium data submitted was not adjusted for permissible exclusions to the Cadillac Tax
There were no special adjustments to the dollar limit other than those permissible for non-Medicare
retirees over 55.
Results indicate that the value of the excise tax would be reasonably represented by a 25 point addition
to the long-term trend rate assumption.
Town of Westlake
Notes to the Financial Statements
84
TRS-Care Discount Rate
A single discount rate of 2.63% was used to measure the total OPEB liability at August 31, 2019. There was
a change of 1.06% in the discount rate since August 31, 2018 measurement date. The plan is essentially a
“pay-as-you-go” plan, and based on the assumption that contributions are made at the statutorily
required rates, the OPEB plan’s fiduciary net position was projected to not be able to make all future
benefit payments to current members and therefore, the single discount rate is equal to the prevailing
municipal bond rate. The source for the rate is the Fixed Income Market Data / Yield Curve / Data
Municipal Bonds with 20 years to maturity that include only federally tax-exempt municipal bonds as
reported in Fidelity Index’s “20-Year Municipal GO AA Index”.
TRS-Care Discount Rate Sensitivity Analysis. The following schedule shows the impact of the Net OPEB
Liability if the discount rate used was 1% less than and 1% greater than the discount rate that was used
(2.63%) in measuring the Net OPEB Liability.
1% Decrease in Discount 1% Increase in
Discount Rate Rate Discount Rate
(1.63%) (2.63%) (3.63%)
Academy's proportionate share of the
net OPEB liability 3,417,584$ 2,830,719$ 2,371,611$
TRS-Care Healthcare Cost Trend Rates Sensitivity Analysis. The following presents the net OPEB liability of
the plan using the assumed healthcare cost trend rate, as well as what the net OPEB liability would be if
it were calculated using a trend rate that is one-percentage point lower or one-percentage point higher
than the assumed healthcare cost trend rate.
1% Decrease in Trend 1% Increase in
Rate Rate Discount Rate
Academy's proportionate share of the
net OPEB liability 2,309,200$ 2,830,719$ 3,529,311$
TRS-Care OPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to OPEBs. At August 31, 2020, the Academy reported a liability of $2,830,719 for its
proportionate share of the TRS’s Net OPEB Liability. This liability reflects a reduction for State OPEB support
provided to the Academy. The amount recognized by the Academy as its proportionate share of the net
OPEB liability, the related State support, and the total portion of the net OPEB liability that was associated
with the Academy were as follows:
Academy's proportionate share of the collective net OPEB liability 2,830,719$
State's proportionate share that is associated with Academy 3,761,390
Total 6,592,109$
The Net OPEB Liability was measured as of August 31, 2018 and rolled forward to August 31, 2019 and the
Total OPEB Liability used to calculate the Net OPEB Liability was determined by an actuarial valuation as
of that date. The employer’s proportion of the Net OPEB Liability was based on the employer’s
contributions to the OPEB plan relative to the contributions of all employers to the plan for the period
September 1, 2018 thru August 31, 2019.
Town of Westlake
Notes to the Financial Statements
85
At August 31, 2019 the employer’s proportion of the collective Net OPEB Liability was .0059857139% which
was an increase of .0000763739% the same proportion measured as of August 31, 2018.
TRS-Care Changes since the Prior Actuarial Valuation. The following were changes to the actuarial
assumptions or other inputs that affected measurement of the Total OPEB liability since the prior
measurement period.
The discount rate changed from 3.69% as of August 31, 2018 to 2.63% as of August 31, 2019. This
change increased the total OPEB liability.
The participation rate for pre-65 retirees was lowered from 70% to 65%. The participation rate for
post-65 retirees was lowered from 75% to 50%. 25% of pre-65 retirees are assumed to discontinue
their coverage at age 65. There was no lapse assumption in the prior valuation. These changes
decreased the total OPEB liability.
The trend rates were reset to better reflect the plan’s anticipated experience. This change
increased the total OPEB liability.
The percentage of retirees who are assumed to have two-person coverage was lowered from
20% to 15%. In addition, the participation assumption for the surviving spouses of employees that
die while actively employed was lowered from 20% to 10%. These changes decreased the total
OPEB liability.
For the year ended August 31, 2020, the Academy recognized OPEB expense of $187,014 and revenue
of $99,135 for support provided by the State.
At August 31, 2020, the Academy reported its proportionate share of the TRS’s deferred outflows of
resources and deferred inflows of resources related to other post-employment benefits from the following
sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences between expected and actual economic experience 138,871$ 463,217$
Changes in actuarial assumptions 157,224 761,394
Difference between projected and actual investment earnings 305 -
Changes in proportion and difference between the employer’s
contributions and the proportionate share of contributions 54,784 -
Contributions paid to TRS subsequent to the measurement date 46,278 -
Total 397,462$ 1,224,611$
The $46,278 deferred outflow of resources resulting from Academy contributions subsequent to the
measurement date will be recognized as a reduction of the net OPEB liability in the year ended
August 31, 2021.
Town of Westlake
Notes to the Financial Statements
86
The net amounts of the remaining balances of deferred outflows and inflows of resources related to OPEB
will be recognized in OPEB expense as follows:
OPEB
Expense
Year Ended (Income)
August 31, Amount
2021 (149,145)$
2022 (149,145)
2023 (149,244)
2024 (149,303)
2025 (149,287)
Thereafter (127,303)
Total (873,427)$
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, Lexington TNI, 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 three 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.
Town of Westlake
Notes to the Financial Statements
87
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.
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, 2020, the Town abated $258,852
in property taxes; $130,702 in sales taxes; and $19,335 in hotel/motel taxes.
Town of Westlake
Notes to the Financial Statements
88
Note 17. Going Concern
The 2020 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. Subsequent Events
The Town has evaluated all events or transactions that occurred after September 30, 2020 up through
April 20, 2021, the date the financial statements were issued. During this period, there were no material
subsequent events that required recognition or additional disclosure in these financial statements, except
as follows:
COVID-19
In March 2020, the World Health Organization declared the novel coronavirus (‘COVID-19’) a global
pandemic and recommended containment and mitigation measures worldwide. This contagious disease
outbreak, which has continued to spread, and any related adverse public health developments, has
adversely affected public education, workforces, economies, and financial markets globally, potentially
leading to economic downturn. It has also disrupted the normal operations of many businesses and
organizations. It is not possible for management to predict the duration or magnitude of the adverse
results of the outbreak and its disruptive effects on the Town’s operations and financial results at this time.
89
Required Supplementary Information
90
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, 2020
91
Variance
Favorable
Original Amended Actual (Unfavorable)
REVENUES
Taxes
Sales 5,437,500$ 5,085,001$ 5,534,125$ 449,125$
Property 1,634,916 1,725,000 1,725,951 951
Mixed beverages 62,500 40,750 41,949 1,199
Franchise 316,924 981,968 972,520 (9,448)
Interest income 289,250 197,500 170,036 (27,464)
Building permits and fees 2,838,560 1,878,165 1,996,834 118,669
Fines and penalties 547,426 510,709 492,435 (18,274)
Intergovernmental - - 24,750 24,750
Contributions - (24,750) 12,860 37,610
Miscellaneous 26,600 44,727 126,198 81,471
Total revenues 11,153,676 10,439,070 11,097,658 658,589
EXPENDITURES
Current
General government 5,719,036 5,467,003 5,169,039 297,964
Public safety 3,688,420 3,672,643 3,512,456 160,187
Cultural and recreation 354,395 308,997 264,248 44,749
Public works 481,196 559,279 567,995 (8,716)
Debt service
Principal retirement 36,680 36,680 36,677 3
Total expenditures 10,279,728 10,044,602 9,550,415 494,187
Excess of revenues over expenditures 873,948 394,468 1,547,243 1,152,775
OTHER FINANCING SOURCES (USES)
Transfers in 67,225 67,225 77,158 9,933
Transfers out (1,067,349) (293,489) (272,089) 21,400
Net other financing sources (uses) (1,000,124) (226,264) (194,931) 31,333
NET CHANGE IN FUND BALANCE (126,176) 168,204 1,352,312 1,184,108
FUND BALANCE AT BEGINNING OF YEAR 15,238,198 15,238,198 15,238,198 -
FUND BALANCE AT END OF YEAR 15,112,022$ 15,406,402$ 16,590,510$ 1,184,108$
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 August 31, 2020
92
Variance
Favorable
Original Final Actual (Unfavorable)
REVENUES
State program revenues 8,277,372$ 8,108,857$ 8,011,061$ (97,796)$
Federal program revenues 111,772 113,670 137,910 24,240
Interest income 20,000 18,000 17,293 (707)
Local and intermediate sources 1,819,061 1,737,640 1,675,317 (62,323)
Total revenues 10,228,205 9,978,167 9,841,581 (136,586)
EXPENDITURES
Education 9,222,497 10,231,943 9,845,685 386,258
Debt service 350,005 207,922 207,922 -
Total expenditures 9,572,502 10,439,865 10,053,607 386,258
Excess (Deficiency) of revenues
over (under) expenditures 655,703 (461,698) (212,026) 249,672
OTHER FINANCING SOURCES
Transfers in 90,000 90,000 - (90,000)
Issuance of capital lease - 585,623 585,623 -
Total other financing sources 90,000 675,623 585,623 (90,000)
NET CHANGE IN FUND BALANCE 745,703 213,925 373,597 159,672
FUND BALANCE AT BEGINNING OF YEAR 1,387,690 1,387,690 1,387,690 -
FUND BALANCE AT END OF YEAR 2,133,393$ 1,601,615$ 1,761,287$ 159,672$
Westlake Academy
Budgeted Amounts
Town of Westlake
Notes to Budgetary Comparison Schedules
93
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. Expenditures were in excess of appropriations as follows for the fiscal year ended September 30,
2020:
Public works ($8,716)
5. Budget amounts are reflected after all authorized amendments and revisions. This budget is
reported as the Final Budget in the budgetary comparison schedules.
6. The appropriated budget is prepared by fund, function and department. The Town's
management may make transfers of appropriations within a fund. Transfers of appropriations
between funds require the approval of the Town Council. The legal level of budgetary control is
the fund level. The Town Council made several supplementary budget appropriations during the
year.
7. Commitments are for goods or services in future years. Accounting under other commitments for
the expenditure of resources are recorded to reserve a portion of the governmental funds. The
budgeted commitments lapse at year-end and do not constitute expenditures or liabilities
because the commitments must be re-appropriated, budgeted, and honored during the
subsequent year.
8. Prior to August 25 of the preceding fiscal year, the Westlake Academy prepares a budget for the
next succeeding fiscal year beginning September 1. The operating budget includes proposed
expenditures and the means of financing them. A meeting of the Board of Trustees is then called
for the purpose of adopting the proposed budget. Prior to September 1, the budget is legally
enacted through resolution by the Board. Once a budget is approved, it can only be amended
at the object, function and fund level by approval of a majority of the members of the Board.
Amendments are presented to the Board at its regular meetings. Each amendment made before
the fact, is reflected in the official minutes of the Board, and is not made after fiscal year end. All
budget appropriations lapse at year end.
Town Of Westlake Exhibit B-3
Schedule of Net Pension Liability and Related Ratios
Texas Municipal Retirement System Pension Plan
Last Six Measurement Years
94
2019 2018 2017 2016 2015 2014
Total pension liability
Service cost 651,255$ 605,453$ 566,643$ 483,414$ 435,146$ 288,923$
Interest 570,598 493,022 439,725 371,753 317,982 264,994
Change in benefit terms - - - - - -
Difference between expected and
actual experience 131,635 126,691 (120,557) 212,434 96,226 176,965
Change in assumptions 89,534 - - - 139,579 -
Benefit payments (112,642) (84,942) (146,316) (58,144) (38,289) (55,762)
Net change in total pension liability 1,330,380 1,140,224 739,495 1,009,457 950,644 675,120
Total pension liability, beginning 8,183,993 7,043,769 6,304,274 5,294,817 4,344,173 3,669,053
Total pension liability, ending 9,514,373 8,183,993 7,043,769 6,304,274 5,294,817 4,344,173
Plan fiduciary net position
Contributions, employer 470,903 472,011 400,684 330,604 290,278 172,064
Contributions, nonemployer 279,349 257,327 232,776 203,359 188,725 152,077
Net investment income 999,440 (179,608) 670,195 276,056 5,368 182,430
Benefit payments (112,642) (84,942) (146,316) (58,144) (38,289) (55,762)
Administrative income (5,628) (3,463) (3,468) (3,113) (3,268) (1,904)
Other (169) (181) (176) (168) (191) (127)
Net change in plan fiduciary net position 1,631,253 461,144 1,153,695 748,594 442,623 448,778
Plan fiduciary net position, beginning 6,442,632 5,981,488 4,827,793 4,079,199 3,636,576 3,187,798
Plan fiduciary net position, ending 8,073,885 6,442,632 5,981,488 4,827,793 4,079,199 3,636,576
Town's net pension liability, ending 1,440,488$ 1,741,361$ 1,062,281$ 1,476,481$ 1,215,618$ 707,597$
Plan fiduciary net position as a %
of total pension liability 84.86% 78.72% 84.92% 76.58% 77.04% 83.71%
Covered payroll 3,961,404$ 3,676,095$ 3,325,369$ 2,905,134$ 2,696,072$ 2,172,525$
Town's net pension liability as a %
of payroll 36.36% 47.37% 31.94% 50.82% 45.09% 32.57%
Note: Only six 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 not 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 Pension Contributions
Texas Municipal Retirement System Pension Plan
Last Six Fiscal Years
95
2020 2019 2018 2017 2016 2015
Actuarially determined contributions 478,059$ 473,030$ 454,421$ 419,720$ 316,618$ 277,651$
Contributions in relation to the actuarially
determined contributions (478,059) (473,030) (454,421) (419,720) (316,618) (277,651)
Contribution deficiency (excess)-$ -$ -$ -$ -$ -$
Covered payroll 4,058,942 3,920,565 3,676,094 3,325,369 2,821,349 2,778,776
Contributions as a percentage
of covered payroll 11.78% 12.07% 12.36% 12.62% 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 six 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 not 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’ information
will be displayed as it becomes available.”
Town of Westlake Exhibit B-5
Schedule of Academy’s Proportionate Share
of Net Pension Liability – Teacher Retirement System Pension Plan
Last Six Measurement Years
96
2019 2018 2017 2016 2015 2014
Academy's proportion of the net pension liability 0.0028912% 0.0027061% 0.0028012% 0.0027822% 0.0030945% 0.0007190%
Academy's proportionate share of net pension liability 1,502,914$ 1,489,525$ 895,663$ 1,051,346$ 1,093,865$ 192,056$
State's proportionate share of net pension liability
associated with the Westlake Academy 5,272,547 5,571,598 3,480,057 4,035,754 3,667,893 2,965,583
Total 6,775,461$ 7,061,123$ 4,375,720$ 5,087,100$ 4,761,758$ 3,157,639$
Academy's covered payroll 5,534,431$ 5,289,916$ 5,391,515$ 5,094,571$ 4,784,695$ 4,300,931$
Academy's proportionate share of net pension liability
as a percentage of its covered payroll 27.16% 28.16% 16.61% 20.64% 22.86% 4.47%
Plan fiduciary net position as a
percentage of total pension liability 75.24% 73.74% 82.17% 78.00% 78.43% 83.25%
Note: Only six 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 Pension Contributions
Teacher Retirement System Pension Plan
Last Six Fiscal Years
(Unaudited)
97
2020 2019 2018 2017 2016 2015
Statutorily required contributions 230,148$ 100,311$ 91,593$ 131,436$ 88,399$ 92,325$
Actual contributions in relation to
statutorily required contributions (230,148) (100,311) (91,593) 131,436 88,399 92,325
Contribution deficiency (excess)-$ -$ -$ -$ -$ -$
Academy's covered payroll 5,984,542$ 5,534,431$ 5,289,916$ 5,391,515$ 5,094,571$ 4,784,694$
Contributions as a percentage
of Academy's covered payroll 3.85% 1.81% 1.73% 2.44% 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 six years of data is presented in accordance with GASB #68, paragraph 138. "The information for all periods for the
ten-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-7
Schedule of Changes in the Total OPEB Liability and Related Ratios
Texas Municipal Retirement System OPEB Plan
Last Three Measurement Years
(Unaudited)
98
2019 2018 2017
Total OPEB liability
Service cost 7,131$ 7,720$ 6,318$
Interest 2,146 1,844 1,603
Change in benefit terms - - -
Difference between expected and
actual experience 3,831 (2,126) -
Change in assumptions 15,394 (4,632) 4,872
Benefit payments (396) (5,184) 4,816
Net change in total OPEB liability 28,106 (2,378) 17,609
Total OPEB liability, beginning 54,484 56,862 39,253
Total OPEB liability, ending 82,590$ 54,484$ 56,862$
Covered payroll 3,961,404$ 3,676,094$ 3,325,369$
Total OPEB liability as a %
of covered payroll 2.08% 1.48% 1.71%
Note: Only three years of data is presented in accordance with GASB #75. Additional years’ information will be displayed as it
becomes available.
The TMRS Supplementary Death Benefit Fund (SDBF) is considered to be an unfunded OPEB plan; therefore, no plan fiduciary net
position and related ratios are reported in the above schedule.
Town of Westlake Exhibit B-8
Schedule of OPEB Contributions
Texas Municipal Retirement System OPEB Plan
Last Three Fiscal Years
(Unaudited)
99
2020 2019 2018
Actuarially determined contributions 7,712$ 7,349$ 6,380$
Contributions in relation to the actuarially
determined contributions (7,712) (7,349) (6,380)
Contribution deficiency (excess)-$ -$ -$
Covered payroll 4,058,942$ 3,920,565$ 3,676,094$
Contributions as a percentage
of covered payroll 0.19 %0.19%0.17%
Note: GASB #75, paragraph 57 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.
Only three years of data is presented in accordance with GASB #75. Additional years’ information will be displayed
as it becomes available. The TMRS Supplementary Death Benefit Fund (SDBF) is considered to be an unfunded OPEB
plan; therefore, no plan fiduciary net position and related ratios are reported in the above schedule.
Town of Westlake Exhibit B-9
Schedule of Academy’s Proportionate Share of the Net OPEB Liability and Related Ratios
Teacher Retirement System TRS Care Plan
Last Three Measurement Years
(Unaudited)
100
2019 2018 2017
Academy's proportion of the net OPEB liability 0.59857139% 0.00590934% 0.00588304%
Academy's proportionate share of net OPEB liability 2,830,719$ 2,950,588$ 2,558,314$
State's proportionate share of net OPEB liability
associated with the Westlake Academy 3,761,390 4,695,104 4,406,333
Total 6,592,109$ 7,645,692$ 6,964,647$
Academy's covered payroll 5,534,431$ 5,289,916$ 5,391,515$
Academy's proportionate share of net OPEB liability
as a percentage of its covered payroll 51.15% 55.78% 47.45%
Plan fiduciary net position as a
percentage of total OPEB liability 2.66% 1.57% 0.91%
Note: Only three years of data is presented in accordance with GASB #75. "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-10
Schedule of Academy’s OPEB Contributions
Teacher Retirement System TRS Care Plan
Last Three Fiscal Years
(Unaudited)
101
2020 2019 2018
Statutorily required contributions 46,278$ 46,703$ 46,204$
Actual contributions in relation to
statutorily required contributions (46,278) (46,703) (46,204)
Contribution deficiency (excess)-$ -$ -$
Academy's covered payroll 5,984,542$ 5,534,431$ 5,289,916$
Contributions as a percentage
of Academy's covered payroll 0.77% 0.84% 0.87%
Note: GASB 75 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 #75. "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.”
102
103
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, 2020
104
Variance
Favorable
Original Amended Actual (Unfavorable)
REVENUES
Taxes
Property 666,221$ 701,220$ 685,913$ (15,307)$
Total revenues 666,221 701,220 685,913 (15,307)
EXPENDITURES
Debt service
Principal retirement 1,613,350 1,613,350 1,613,350 -
Interest and other fiscal charges 1,084,340 1,084,340 1,083,542 798
Total expenditures 2,697,690 2,697,690 2,696,892 798
Excess (deficiency) of revenues
over (under) expenditures (2,031,469) (1,996,470) (2,010,979) (14,509)
OTHER FINANCING SOURCES
Transfers in 1,988,489 1,988,489 2,116,814 128,325
Total other financing sources 1,988,489 1,988,489 2,116,814 128,325
NET CHANGE IN FUND BALANCE (42,980) (7,981) 105,835 113,816
FUND BALANCE AT BEGINNING OF YEAR 44,683 44,683 44,683 -
FUND BALANCE AT END OF YEAR 1,703$ 36,702$ 150,518$ 113,816$
Debt Service Fund
Budgeted Amounts
Town of Westlake
Nonmajor Governmental Funds
105
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.
Public Arts Fund
To account for contributions restricted for public arts.
4B Economic Development Corporation
To account for sales tax collected to fund the activities of the 4B Economic Development Corporation.
Solana Public Improvement District (PID) Capital Projects Fund
To account for the acquisition or construction of capital facilities and improvements relating to the Solana
public improvement district.
Town of Westlake Exhibit C-2
Combining Balance Sheet
Non Major Governmental Funds
September 30, 2020
106
Visitors
Association
Lone Star
Public
Facilities
Corporation
Fund
Economic
Development
Fund
Public Arts
Fund
4B Economic
Development
Corporation
Fund
Solana PID
Capital Pro jects
Fund
Total
Nonmajor
Governmental
Funds
ASSETS
Cash and cash equivalents 327,014$ 14,719$ 50$ 100,000$ -$ -$ 441,783$
Accounts receivable - - - - 249,766 - 249,766
Prepaid items 7,269 - - - - - 7,269
Restricted cash and investments - - - - - 230,402 230,402
Total assets 334,283$ 14,719$ 50$ 100,000$ 249,766$ 230,402$ 929,220$
LIABILITIES AND FUND BALANCES
Accounts payable 10,950$ -$ 50$ -$ -$ 200,999 211,999$
Due to other funds - - - - 249,766 - 249,766
Total liabilities 10,950 - 50 - 249,766 200,999 461,765
FUND BALANCES
Nonspendable:
Prepaid items 7,269 - - - - - 7,269
Restricted for:
Capital items - - - - - 29,403 29,403
Tourism 316,064 - - 100,000 - - 416,064
Future projects - 14,719 - - - - 14,719
Total fund balances 323,333 14,719 - 100,000 - 29,403 467,455
Total liabilities and
fund balances 334,283$ 14,719$ 50$ 100,000$ 249,766$ 230,402$ 929,220$
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, 2020
107
Visitors
Association
Lone Star
Public
Facilities
Corporation
Fund
Economic
Development
Fund
Public Arts
Fund
4B Economic
Development
Corporation
Fund
Solana PID
Capital
Projects Fund
Total Nonmajor
Governmental
Funds
REVENUES
Sales taxes -$ -$ 50$ -$ 1,844,725$ -$ 1,844,775$
Hotel occupancy taxes 349,810 - 19,335 - - - 369,145
Interest income 7,594 176 - - - 995 8,765
Contributions - - 280,000 - - 280,000
Miscellaneous 11,479 - - - - - 11,479
Total revenues 368,883 176 299,385 - 1,844,725 995 2,514,164
EXPENDITURES
Current:
Economic development - - 150,037 - - 53,370 203,407
Visitor services 771,883 - - 10,000 - - 781,883
Total expenditures 771,883 - 150,037 10,000 - 53,370 985,290
Excess (deficiency) of revenues
over (under) expenditures (403,000) 176 149,348 (10,000) 1,844,725 (52,375) 1,528,874
OTHER FINANCING SOURCES (USES)
Transfers in - - - 100,000 - - 100,000
Transfers out - - (280,000) - (1,844,725) - (2,124,725)
Total other financing
sources (uses) - - (280,000) 100,000 (1,844,725) - (2,024,725)
Net change in fund balances (403,000) 176 (130,652) 90,000 - (52,375) (495,851)
Fund balances, October 1 726,333 14,543 130,652 10,000 - 81,778 963,306
Fund balances, September 30 323,333$ 14,719$ -$ 100,000$ -$ 29,403$ 467,455$
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, 2020
108
Variance
Favorable
Original Amended Actual (Unfavorable)
REVENUES
Hotel occupancy taxes 816,702$ 349,723$ 349,810$ 87$
Interest income 14,606 8,000 7,594 (406)
Miscellaneous 4,112 11,480 11,479 (1)
Total revenues 835,420 369,203 368,883 (320)
EXPENDITURES
Visitor services 955,966 915,341 771,883 143,458
Total expenditures 955,966 915,341 771,883 143,458
Excess (deficiency) of revenues over
(under) expenditures (120,546) (546,138) (403,000) 143,138
NET CHANGE IN FUND BALANCE (120,546) (546,138) (403,000) 143,138
FUND BALANCE AT BEGINNING OF YEAR 726,333 726,333 726,333 -
FUND BALANCE AT END OF YEAR 605,787$ 180,195$ 323,333$ 143,138$
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, 2020
109
Variance
Favorable
Original Amended Actual (Unfavorable)
REVENUES
Interest income 1,035$ 150$ 176$ 26$
Total revenues 1,035 150 176 26
NET CHANGE IN FUND BALANCE 1,035 150 176 26
FUND BALANCE AT BEGINNING OF YEAR 14,543 14,543 14,543 -
FUND BALANCE AT END OF YEAR 15,578$ 14,693$ 14,719$ 26$
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, 2020
110
Variance
Favorable
Original Amended Actual (Unfavorable)
REVENUES
Taxes
Sales -$ -$ 50$ 50$
Hotel occupancy 36,982 23,000 19,335 (3,665)
Miscellaneous 280,000 280,000 280,000 -
Total revenues 316,982 303,000 299,385 (3,615)
EXPENDITURES
Economic development 36,982 153,652 150,037 3,615
Total expenditures 36,982 153,652 150,037 3,615
Excess of revenues
over expenditures 280,000 149,348 149,348 -
OTHER FINANCING USES
Transfers out (280,000) (280,000) (280,000) -
Total other financing uses (280,000) (280,000) (280,000) -
NET CHANGE IN FUND BALANCE - (130,652) (130,652) -
FUND BALANCE AT BEGINNING OF YEAR 130,652 130,652 130,652 -
FUND BALANCE AT END OF YEAR 130,652$ -$ -$ -$
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, 2020
111
Variance
Favorable
Original Amended Actual (Unfavorable)
REVENUES
Taxes
Sales 1,812,500$ 1,695,000$ 1,844,725$ 149,725$
Total revenues 1,812,500 1,695,000 1,844,725 149,725
OTHER FINANCING USES
Transfers out (1,812,500) (1,695,000) (1,844,725) (149,725)
Total other financing uses (1,812,500) (1,695,000) (1,844,725) (149,725)
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
112
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, 2020
113
Balance at Balance at
Beginning End
of Year Additions Deletions of Year
ASSETS
Restricted cash and cash equivalents 2,160,298$ -$ (62,387)$ 2,097,911$
Total assets 2,160,298$ -$ (62,387)$ 2,097,911$
LIABILITIES
Liability to bond holders 2,160,298$ -$ (62,387)$ 2,097,911$
Total liabilities 2,160,298$ -$ (62,387)$ 2,097,911$
114
115
Statistical Section
Statistical Section
Unaudited
116
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 117 - 122
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 123 - 127
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 128 - 130
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 131 - 133
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 134 - 135
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 117 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Governmental activities:Net Investment in capital assets 12,658,921$ 14,866,299$ 21,177,426$ 32,048,991$ 29,633,298$ 38,299,337$ 46,499,873$ 47,629,452$ 48,030,010$ 46,633,638$ Restricted 7,137,362 4,726,376 4,243,239 2,284,947 17,827,177 7,489,048 2,034,916 1,077,646 3,786,893 3,653,143 Unrestricted3,448,100 5,023,731 6,636,876 910,977)( 7,108,101 9,260,572 9,513,643 6,437,845 10,775,740 12,350,020 Total governmentalactivities net position23,244,383$ 24,616,406$ 32,057,541$ 33,422,961$ 54,568,576$ 55,048,957$ 58,048,432$ 55,144,943$ 62,592,643$ 62,636,801$ Business-type activities:Net investment in capital assets 6,875,031$ 6,877,555$ 6,601,949$ 6,734,414$ 6,410,547$ 6,044,363$ 5,583,570$ 5,293,188$ 4,909,471$ 4,672,681$ Restricted - - - - - - - - - 50,000 Unrestricted1,542,092)( 1,636,249)( 842,457)( 1,272,014)( 2,608,315)( 4,041,360)( 3,746,696)( 4,685,810)( 6,548,934)( 6,328,176)( Total business-typeactivities net position5,332,939$ 5,241,306$ 5,759,492$ 5,462,400$ 3,802,232$ 2,003,003$ 1,836,874$ 607,378$ 1,639,463)$( 1,605,495)$( Primary government:Net investment in capital assets 19,533,952$ 21,743,854$ 27,779,375$ 38,783,405$ 36,043,845$ 44,343,700$ 52,083,443$ 52,922,640$ 52,939,481$ 51,306,319$ Restricted 7,137,362 4,726,376 4,243,239 2,284,947 17,827,177 7,489,048 2,034,916 1,077,646 3,786,893 3,703,143 Unrestricted1,906,008 3,387,482 5,794,419 2,182,991)( 4,499,786 5,219,212 5,766,947 1,752,035 4,226,806 6,021,844 Total primary governmentnet position28,577,322$ 29,857,712$ 37,817,033$ 38,885,361$ 58,370,808$ 57,051,960$ 59,885,306$ 55,752,321$ 60,953,180$ 61,031,306$ Source: Annual financial reportsFiscal Year
Town of Westlake Exhibit S-2 Changes in Net Position Last Ten Years – Concluded Accrual Basis of Accounting – Unaudited 118 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020EXPENSESGovernmental activities:General government 2,478,826$ 2,518,490$ 2,606,785$ 2,784,587$ 3,145,716$ 4,491,557$ 5,716,302$ 4,776,131$ 6,091,403$ 6,555,048$ Public Safety 1,801,585 1,883,424 1,978,803 2,190,050 2,381,437 2,737,084 3,063,003 3,133,733 3,489,071 3,991,114 Cultural and Recreation 122,400 111,765 113,924 123,541 129,970 187,274 217,489 184,685 299,815 282,512 Public Works 470,054 216,901 267,973 955,794 1,081,996 1,102,636 1,634,549 1,820,908 1,368,049 1,326,090 Economic Development 680,823 546,039 626,423 147,680 171,757 141,779 163,578 469,852 306,982 150,037 Visitor Services 356,365 475,719 521,521 493,087 665,936 740,835 737,071 885,654 927,670 802,244 Education 4,884,985 6,193,560 5,803,611 7,147,411 8,598,261 9,516,287 8,566,295 6,568,453 9,523,906 9,979,674 Interest on long-term debt1,127,913 897,573 1,031,328 998,951 1,022,201 990,413 1,401,199 1,184,818 1,131,485 1,103,925 Total governmental activities expenses11,922,951 12,843,471 12,950,368 14,841,101 17,197,274 19,907,865 21,499,486 19,024,234 23,138,381 24,190,644 Business-type activities:Water and Sewer 2,794,235 3,098,466 3,356,466 3,690,137 4,861,529 5,519,116 4,893,075 7,049,946 7,544,125 6,407,650 Cemetery5,604 6,282 5,328 7,121 7,297 7,831 8,021 9,754 10,628 21,734 Total business-type activities expenses2,799,839 3,104,748 3,361,794 3,697,258 4,868,826 5,526,947 4,901,096 7,059,700 7,554,753 6,429,384 Total primary government program expenses14,722,790$ 15,948,219$ 16,312,162$ 18,538,359$ 22,066,100$ 25,434,812$ 26,400,582$ 26,083,934$ 30,693,134$ 30,620,028$ PROGRAM REVENUESGovernmental activities:Fees, fines, and charges for services:General Government 721,157$ 673,090$ 774,909$ 33,975$ 110,778$ 789,457$ 73,180$ 137,805$ 91,845$ 318,140$ Public Safety 140,600 142,402 182,154 848,772 887,919 932,017 783,681 782,833 984,268 649,795 Public Works 292,572 407,328 659,246 1,022,769 936,245 1,789,776 3,338,541 2,027,613 5,419,039 1,587,839 Education 99,638 195,059 182,220 222,270 531,090 283,077 275,759 247,721 313,741 90,123 Operating grants and contributions 728,242 5,269,841 4,907,472 6,592,642 7,615,653 7,863,168 8,047,113 7,044,597 9,166,821 9,725,263 Capital grants and contributions425,900 - 5,897,456 80,472 19,983,078 269,185 3,485,255 424,948 1,861,623 280,000 Total governmental activities program revenues2,408,109 6,687,720 12,603,457 8,800,900 30,064,763 11,926,680 16,003,529 10,665,517 17,837,337 12,651,160 Business-type activities:Charges for services:Water and Sewer 3,078,868 2,934,842 3,157,332 3,428,702 3,549,775 3,968,086 4,815,635 5,794,818 5,374,118 6,410,755 Cemetery 13,300 4,500 5,510 7,749 13,620 11,115 9,964 29,440 30,745 67,578 Operating grants and contributions - 24,423 - - - - - - - - Capital grants and contributions- - - - - - 50,000 1,271 54 - Total business-type activities program revenues3,092,168 2,963,765 3,162,842 3,436,451 3,563,395 3,979,201 4,875,599 5,825,529 5,404,917 6,478,333 Total primary government program revenues5,500,277$ 9,651,485$ 15,766,299$ 12,237,351$ 33,628,158$ 15,905,881$ 20,879,128$ 16,491,046$ 23,242,254$ 19,129,493$ Fiscal Year
Town of Westlake Exhibit S-2 Changes in Net Position Last Ten Years – Concluded Accrual Basis of Accounting – Unaudited 119 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020NET (EXPENSE) REVENUESGovernmental activities 9,514,842)$( 6,155,751)$( 346,911)$( 6,040,201)$( 12,867,489$ 7,981,185)$( 5,495,957)$( 8,358,717)$( 5,301,044)$( 11,539,484)$( Business-type activities292,329 140,983)( 198,952)( 260,807)( 1,305,431)( 1,547,746)( 25,497)( 1,234,171)( 2,149,836)( 48,949 Total primary government net expense9,222,513)( 6,296,734)( 545,863)( 6,301,008)( 11,562,058 9,528,931)( 5,521,454)( 9,592,888)( 7,450,880)( 11,490,535)( GENERAL REVENUES AND OTHER CHANGES IN NET POSITIONGovernmental activities:TaxesSales 4,609,626 3,657,274 4,375,397 4,725,845 4,925,428 4,609,523 4,650,744 6,003,605 8,032,671 7,378,900 Property 1,260,112$ 1,441,238 1,366,633 1,367,069 1,438,969 1,476,355 1,576,750 1,629,640 1,956,630 2,411,279 Hotel Occupancy 527,261 590,853 709,578 796,481 872,179 822,490 751,601 849,167 861,710 369,145 Mixed Beverage 19,721 38,286 39,727 51,602 59,184 61,476 68,432 62,347 66,923 41,949 Franchise 586,836 664,991 734,935 795,322 963,040 930,043 818,423 779,506 964,239 972,520 Unrestricted grants and contributions 3,744,757 - - - - - - - - - Investment earnings 46,248 33,353 24,218 26,713 28,904 55,600 182,095 356,076 517,128 260,003 Miscellaneous 691,345 1,112,858 1,023,149 246,633 198,199 241,501 278,071 215,076 142,230 72,688 Transfers 145,216 45,507 485,591)( 43,399 323,100 264,578 169,316 71,466 207,213 77,158 Extraordinary item 56,704 124,346)( - - - - - - - - Special item - 67,760 - - - - - - - - Gain on sale of capital assets7,000 - - - - - - - - - Total governmental activities11,631,122 7,527,774 7,788,046 8,053,064 8,809,003 8,461,566 8,495,432 9,966,883 12,748,744 11,583,642 Business-type activities:Investment earnings 9,929 10,077 6,552 7,114 7,083 13,095 28,684 79,961 110,208 62,177 Miscellaneous 145,666 84,780 224,995 - - - - - - - Transfers145,216)( 45,507)( 485,591 43,399)( 323,100)( 264,578)( 169,316)( 71,466)( 207,213)( 77,158)( Total business-type activities10,379 49,350 717,138 36,285)( 316,017)( 251,483)( 140,632)( 8,495 97,005)( 14,981)( Total primary government11,641,501 7,577,124 8,505,184 8,016,779 8,492,986 8,210,083 8,354,800 9,975,378 12,651,739 11,568,661 CHANGE IN NET POSITIONGovernmental activities 2,116,280 1,372,023 7,441,135 2,012,863 21,676,492 480,381 2,999,475 1,608,166 7,447,700 44,158 Business-type activities302,708 91,633)( 518,186 297,092)( 1,621,448)( 1,799,229)( 166,129)( 1,225,676)( 2,246,841)( 33,968 Total primary government2,418,988$ 1,280,390$ 7,959,321$ 1,715,771$ 20,055,044$ 1,318,848)$( 2,833,346$ 382,490$ 5,200,859$ 78,126$ 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 120 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020General fundNonspendable: Prepaid items 62,020$ 6,856$ 6,906$ 8,821$ 13,334$ 12,794$ 18,705$ 19,253$ 19,302$ 41,586$ Restricted for:Court security and technology 186,776 192,768 194,422 193,082 203,173 238,636 219,693 203,173 237,804 203,173 Committed for: Future projects 219,687 49,941 74,941 80,442 80,442 335,322 335,392 80,442 80,442 80,442 Assigned for: Future equipment 22,000 22,000 24,000 - - - - - - - Unassigned3,524,911 4,992,240 6,751,362 7,671,173 7,383,601 9,092,721 10,363,702 10,493,380 14,900,650 16,265,309 Total general fund4,015,394$ 5,263,805$ 7,051,631$ 7,953,518$ 7,680,550$ 9,679,473$ 10,937,492$ 10,796,248$ 15,238,198$ 16,590,510$ All other governmental fundsNonspendablePrepaid items 33,511$ 60,963$ 62,635$ 80,118$ 83,359$ 68,718$ 243,401$ 56,397$ 196,074$ 83,440$ Restricted for:Tourism 1,109,365 1,052,546 1,025,891 1,107,520 1,081,009 1,003,636 791,308 781,775 734,938 416,064Future projects 4,647,863 3,594,379 10,370,914 1,751,405 13,632 13,679 13,789 14,141 14,543 14,719Debt service 7,505 22,657 1,482 1,081 20,916 30,468 11,963 28,798 44,683150,518Education 885,365 758,127 931,094 993,998 1,592,227 1,098,359 729,709 1,068,117 1,323,663 1,685,116Economic development 267,577 178,384 - - - - - - - - Capital projects funds - - - - 17,713,788 8,501,489 15,080,456 7,292,917 6,070,774 4,580,448 Total all other governmental funds6,951,186$ 5,667,056$ 12,392,016$ 3,934,122$ 20,504,931$ 10,716,349$ 16,870,626$ 9,242,145$ 8,384,675$ 6,930,305$ Note: Economic Development Funds were classified as special revenue funds through FY 2002 and considered discretely presented component units through FY 2007. Uponfurther 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 reportsFiscal Year
Town of Westlake Exhibit S-4 Changes in Fund Balances Governmental Funds Last Ten Years – Continued Modified Accrual Basis of Accounting – Unaudited 121 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020REVENUES Taxes 7,000,690$ 6,393,472$ 7,226,180$ 7,722,606$ 8,252,748$ 7,902,983$ 7,867,015$ 9,321,321$ 11,881,784$ 11,174,378$ Licenses, fees and permits 530,646 598,394 944,735 1,175,075 1,200,790 2,715,236 3,521,686 2,314,933 5,873,529 1,996,834Fines and penalties 605,705 622,338 695,167 730,441 734,152 796,014673,716 633,318 616,451 492,435State program revenues 3,945,658 4,369,635 4,696,540 5,269,641 6,173,418 6,543,782 6,603,358 7,217,383 7,415,219 8,011,061Federal program revenues 337,508 152,351 81,958 80,103 87,797 98,564140,152 114,797 110,248 137,910Investment earnings 46,248 33,353 24,218 26,713 28,904 55,600182,095 356,076 517,128 260,003Contributions - 732,535 5,916,014 82,446 18,785,953 283,684728,887 494,131 1,253,200 292,860Other revenues980,816 1,323,237 1,274,826 1,665,003 2,471,191 1,542,835 2,863,801 1,735,201 1,804,309 1,837,744 Total revenues13,447,271 14,225,315 20,859,638 16,752,028 37,734,953 19,938,698 22,580,710 22,187,160 29,471,868 24,203,225 EXPENDITURES General government 1,733,324 1,878,885 1,910,545 2,236,360 2,411,239 3,280,507 4,596,827 3,672,933 5,330,174 5,169,039 Public safety 1,842,751 2,224,469 1,967,584 2,146,587 2,490,551 2,453,857 2,684,244 2,992,727 3,269,778 3,512,456 Cultural and recreation 122,400 111,765 113,924 123,541 130,322 185,923164,720 183,816 272,146 264,248 Public works 326,749 391,115 532,675 615,781 744,028 773,751784,279 675,550 593,830 622,307 Economic development 706,391 243,939 296,565 147,685 171,757 141,779163,578 469,852 306,982 203,407 Visitor services 356,365 475,719 521,521 493,082 670,157 725,971717,055 875,322 904,689 781,883 Education 4,884,985 6,193,560 5,762,652 7,143,678 7,938,501 9,245,592 8,819,174 9,012,348 8,996,714 9,845,685 Capital Outlay 1,023,772 1,110,476 7,601,631 9,964,047 5,274,282 9,561,954 7,082,844 9,407,447 3,525,437 1,627,548Capital Project Debt servicePrincipal 555,000 668,000 2,955,000 1,004,677 1,130,762 1,150,490 1,124,697 1,555,677 1,766,131 1,837,638 Interest and other fiscal charges 1,083,377 952,027 830,425 1,116,489 977,412 947,411 1,105,376 1,182,679 1,128,720 1,103,853 Bond issuance cost36,446 148,891 185,699 69,283 - - 368,278 - - - Total expenditures12,671,560 14,398,846 22,678,221 25,061,210 21,939,011 28,467,235 27,611,072 30,028,351 26,094,601 24,968,064 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES775,711$ 173,531)$( 1,818,583)$( 8,309,182)$( 15,795,942$ 8,528,537)$( 5,030,362)$( 7,841,191)$( 3,377,267$ 764,839)$( Fiscal Year
Town of Westlake Exhibit S-4 Changes in Fund Balances Governmental Funds Last Ten Years – Continued Modified Accrual Basis of Accounting – Unaudited 122 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020OTHER FINANCING SOURCES (USES):Proceeds from sale of land -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Sale of assets 7,000 - - - - - 1,200,000 - - - Issuance of debt 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 16,740474,300 - - - 585,623 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 7,082,163 2,121,099 2,104,929 3,094,211 4,617,896 2,485,227 3,621,066 3,949,085 3,902,325 2,673,972Transfers out6,936,947)( 2,075,592)( 2,590,520)( 3,050,812)( (4,294,796)(2,220,649)(3,451,750)(3,877,619)(3,695,112)(2,596,814) Total other financing sources (uses)2,353,920 137,812 10,331,369 753,175 501,899 738,878 12,442,658 71,466 207,213 662,781 NET CHANGES IN FUND BALANCES3,129,631$ 35,719)$( 8,512,786$ 7,556,007)$( 16,297,841$ 7,789,659)$( 7,412,296$ 7,769,725)$( 3,584,480$ 102,058)$( DEBT SERVICE AS A PERCENTAGE OF NONCAPITAL EXPENDITURES14.1% 12.5% 25.3% 14.4% 12.8% 11.1% 12.4% 12.9% 13.0% 12.5% Note: Economic Development Funds were classified as special revenue funds through FY 2002 and considered discretely presented component units through FY 2007. Uponfurther consideration, the 4B Economic Development Corporation and Lone Star Public Facility Corporation funds are now classified as blended component units. Source: Annual Financial Reports Fiscal Year
Town of Westlake Exhibit S-5 Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years Modified Accrual Basis of Accounting – Unaudited 123 Less: Total Taxable TotalFiscal Real Personal Tax-Exempt Assessed DirectYear Property Property Property Value Tax Rate2011 951,070,355$ 70,569,170$ 143,856,142$ 877,783,383$ 0.15684 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 2018 1,517,833,356 133,680,163 442,433,216 1,209,080,303 0.13615 2019 1,558,408,769 139,762,420 400,628,631 1,297,542,558 0.15600 2020 1,388,137,170 121,646,081 322,005,656 1,187,777,595 0.16018 Source: Tarrant County Appraisal DistrictDenton Central Appraisal DistrictAppraised Value
Town of Westlake Exhibit S-6 Principal Property Tax Payers Current and Eight Years Ago – Unaudited 124 PercentagePercentageTaxable of Total Town Taxable of Total TownAssessed Taxable Assessed Taxable Taxpayer Value Rank Assessed Value Taxpayer Value Rank Assessed ValueSOL Westlake LP 108,461,277$ 1 9.13% Maguire Thomas Partners, etal 150,235,546$ 1 15.85% CS Kinross Lake Parkway LLC 89,456,385 2 7.53% FMR Texas, LLC/LTD Partnership 77,754,274 2 8.20% FMR Texas I LLC/FMR Texas Ltd. Partnership 78,687,737 3 6.62% DCLI, LLC 76,847,119 3 8.11% Dallas MTA LP 69,507,181 4 5.85% Corelogic Real Estate 18,050,838 4 1.90% DCLI, LLC 50,970,395 5 4.29% Lexington TNI Westlake LP 16,560,450 5 1.75% BRE Solana LLC 48,965,793 6 4.12% Marsh USA, Inc. 10,030,377 6 1.06% HMC Solana LLC 36,573,910 7 3.08% First American Leasing 8,804,230 7 0.93% Magruire Partners - Solana Land LP 31,142,724 8 2.62% Levi Strauss & Co. 8,637,483 8 0.91% Lexington TNI Westlake LP 17,700,814 9 1.49% Westlake Terra, LLC 6,808,002 9 0.72% Quail Hollow Development II LLC 9,838,111 10 0.83% Louco Investment Partners LP 6,467,500 10 0.68% Total 541,304,327$ 45.56% Total 380,195,819$ 40.11% CY Taxable Value 1,209,080,303 877,783,383 Source: Tarrant County Appraisal DistrictNote: (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 2011 (fiscal year 2012) is $945,488,875. (3) Total Taxable Assessed Value including real and personal property for tax year 2019 (fiscal year 2020) is $1,187,777,59.20122020
Town of Westlake Exhibit S-7 Property Tax Levies and Collections Last Ten Fiscal Years – Unaudited 125 CollectionsTaxes Levied Adjusted Net of RefundsFiscal for the Adjustments Taxes Levied Percent in Subsequent PercentageYear Fiscal Year to Levy for Fiscal Year Amount of Levy Years Amount of Levy 2011 1,409,956$ 47,560$ 1,362,396$ 1,356,050$ 99.53% 4,136$ 1,360,186$ 99.84% 2012 1,486,968 45,693 1,441,275 1,437,908 99.77% 3,367 1,441,275 100.00% 2013 1,398,777 43,314 1,355,463 1,352,097 99.75% 3,366 1,355,463 100.00% 2014 1,405,819 44,761 1,361,058 1,350,639 99.23% 10,182 1,360,821 99.98% 2015 1,450,674 43,948 1,406,726 1,405,148 99.89% 1,179 1,406,327 99.97%2016 1,482,989 40,244 1,442,745 1,441,536 99.92% 1,052 1,442,588 99.99%2017 1,573,803 11,749 1,562,054 1,536,921 98.39% 25,133 1,562,054 100.00%2018 1,661,110 30,810 1,630,300 1,624,655 99.65% (8,127) 1,616,528 99.16%2019 2,007,359 40,698 1,966,661 1,953,575 99.33% (8,858) 1,944,717 98.88%2020 2,454,143 88,265 2,365,878 2,392,470 101.12% 4,498 2,396,968 101.31%Source: Tarrant County Appraisal District Denton Central Appraisal Districtof the Levy to DateCollected within theFiscal Year Total Collections
Town of Westlake Exhibit S-8 Direct and Overlapping Property Tax Rates (Per $100 of Assessed Value) Last Ten Fiscal Years – Unaudited 126 Operating/ Tarrant Tarrant Trophy Total Fiscal General Debt Service Total (A) Carroll Northwest Keller DentonTarrant County County Club Direct andYear 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 2018 0.11133 0.02482 0.13615 1.38500 1.49000 1.52000 0.23781 0.24400 0.14006 0.22443 0.12021 5.49766 2019 0.13201 0.02399 0.15600 1.38000 1.49000 1.51000 0.22557 0.02340 0.13607 0.22443 0.11618 5.26165 2020 0.11453 0.04565 0.16018 1.30000 1.42000 1.40830 0.22528 0.23400 0.13607 0.22443 0.11618 5.22444 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 allTown'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 islocated within the geographic boundaries of the county and school district)Source: Tarrant County Appraisal District Denton Central Appraisal DistrictSchool Districts CountiesTown Direct RatesOverlapping Rates
Town of Westlake Exhibit S-9 Taxable Sales by Industry Type Last Ten Fiscal Years – Unaudited 127 NAICS Industry Type 2011 2012 2013 2014 2015 2016 2017 2018 2019 202011 Agriculture, Forestry, Fishing and Hunting 60$ 38$ 163$ 731$ 775$ 2,083$ 1,685$ 4,303$ 336$ 196$ 21 Mining 4,260 3,050 335 15 714 655 128 5 - 11 22 Utilities 180,032 171,131 176,622 204,280 191,031 138,331 147,000 180,564 183,347 179,545 23 Construction 132,780 139,000 365,049 239,888 216,546 230,067 340,077 1,294,092 2,249,378 1,385,998 31-33 Manufacturing 402,062 526,755 295,660 375,905 234,651 209,128 86,798 113,487 284,939 350,447 42 Wholesale Trade 145,631 134,466 59,571 421,371 515,602 356,946 339,854 278,054 533,723 406,321 44-45 Retail 707,553 1,106,427 1,132,811 962,244 1,332,659 415,356 458,833 428,355 523,021 737,764 48-49 Transportation and Warehousing 316 1,156 3,662 1,962 3,550 1,107 1,133 567 624 1,723 51 Information 508,609 367,298 378,221 623,828 567,685 551,172 387,714 817,086 793,755 764,753 52 Financial and Insurance 73,455 27,857 75,529 505,585 295,622 754,386 509,201 709,787 835,150 352,872 53 Real Estate and Rental and Leasing 210,158 215,754 457,693 493,570 708,747 940,971 999,118 675,273 928,259 884,229 54 Professional, Scientific, and Technical Services 231,526 221,331 536,971 242,069 193,145 287,066 261,704 309,704 519,447 596,913 56 Admin and Support and Waste Mgmt & Rem Srv 65,045 39,027 110,686 103,340 50,264 125,033 85,430 93,967 98,927 76,437 61 Education Services 1,675,351 356,689 373,117 153,279 201,761 230,775 220,078 555,159 577,530 424,882 62 Health Care and Social Assistance 170 106 251 11,018 2,887 228 398 999 592 692 71 Arts, Entertainment and Recreation 206,050 204,456 184,687 191,343 189,027 201,391 241,107 216,403 266,915 460,281 72 Accommodation and Food Services 175,938 93,123 204,044 221,061 246,755 230,615 233,769 228,003 226,361 122,585 81 Other Services (except Public Administration) 4,632 9,805 13,156 17,412 8,965 3,167 2,963 2,772 2,329 4,285 92 Public Administration1 135 295 27,243 - - 1 1,391 1,656 1,717 4,723,629$ 3,617,604$ 4,368,523$ 4,796,144$ 4,960,386$ 4,678,477$ 4,316,991$ 5,909,966$ 8,026,289$ 6,751,651$ 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 reportsDue 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 revenueFiscal Year
Town of Westlake Exhibit S-10
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years – Unaudited
128
Percentage
General Certificates of Actual
Fiscal Obligation of Taxable Per
Year Bonds Obligation Tax Notes Total Sales Capita
2011 8,962,656$ 12,210,000$ -$ 21,172,656$ 9.19% 19,918
2012 16,770,000 4,877,000 - 21,647,000 11.84% 19,519
2013 16,590,000 13,622,000 - 30,212,000 13.81% 26,271
2014 18,260,000 11,044,000 - 29,304,000 12.40% 24,750
2015 17,480,000 11,046,131 - 28,526,131 11.58% 22,409
2016 17,091,659 10,739,306 - 27,830,965 11.30% 20,080
2017 15,267,000 18,460,700 1,530,000 33,727,700 14.50% 22,697
2018 15,457,018 19,361,251 1,328,000 36,146,269 15.54% 23,200
2019 14,504,400 20,957,422 1,116,000 36,577,822 12.19% 22,719
2020 13,512,294 20,341,544 901,000 34,754,838 9.42% 20,886
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
40
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Millions
General Obligation Bonds Certificates of Obligation Tax Notes
Town of Westlake Exhibit S-11 Ratios of Outstanding Debt by Type Last Ten Fiscal Years – Unaudited 129 General Certificates Other Certificates Total PercentageFiscal Obligation of Capital Contractual of Primary of Personal PerYear Bonds Obligation Leases Loans Obligations Obligation Government Income Capita2011 16,770,000$ 4,877,000$ -$ -$ 50,000$ 5,580,380$ -$ 27,277,380$ 23% 25,661 2012 16,770,000 4,877,000 - - 34,075 5,498,668 - 27,179,743 20% 24,508 2013 16,590,000 13,622,000 - - 18,150 5,412,149 - 35,642,299 24% 30,993 2014 18,260,000 10,029,800 - 237,378 437,253 5,320,824 1,014,200 35,299,455 22% 25,576 2015 17,480,000 9,759,250 - 154,347 357,041 5,226,294 1,286,881 34,263,813 23% 32,150 2016 17,091,659 9,736,953 - 563,045 275,101 5,126,958 971,300 33,765,016 19% 29,812 2017 15,457,018 19,361,251 1,328,000 162,004 238,404 5,156,839 949,300 42,652,816 23% 28,703 2018 15,457,018 18,432,779 1,328,000 162,004 201,737 4,913,865 956,009 41,451,412 20% 28,308 2019 14,504,400 17,930,135 1,116,000 - 165,050 4,800,109 3,027,287 41,542,981 20% 28,765 2020 13,512,294 14,424,079 901,000 398,012 128,373 4,679,944 2,917,465 36,961,167 17% 23,246 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 ActivitiesBusiness-TypeActivitiesTax Notes010203040502011 2012 2013 2014 2015 2016 2017 2018 2019 2020MillionsGeneral Obligation BondsCertificates of ObligationCapital LeasesLoansBusiness‐Type ActivitiesBT Certificates of ObligationTax Notes
Town of Westlake Exhibit S-12
Direct and Overlapping Governmental Activities Debt
As of September 30, 2020 –Unaudited
130
Amount of
Debt Outstanding As of Percent (1) Amount
Carroll ISD 346,705,000$ 9/30/2020 5.94% 20,594,277$
Denton County 611,835,000 9/30/2020 0.08% 489,468
Keller ISD 992,714,060 9/30/2020 4.09% 40,602,005
Northwest ISD 1,065,295,272 9/30/2020 #1.90% 20,240,610
Tarrant County 240,445,000 9/30/2020 0.71% 1,707,160
Tarrant County Hospital District 264,175,000 9/30/2020 0.71% 1,875,643
Trophy Club MUD#1 16,135,000 9/30/2020 0.71% 114,559
Total Overlapping Debt 7,205,000 9/30/2020 30.46% 85,623,721
Town of Westlake Outstanding Debt 36,961,167
Total Direct & Overlapping Debt 122,584,888$
Source: Texas Municipal Report prepared by employees of the Municipal Advisory Council of Texas ("MAC")
Note:
(1)The percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were
estimated by determining the portion of the entity's taxable assessed value that is within the Town's boundaries and dividing it by the
entities' total taxable assessed value.
Overlapping
Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the Town. This schedule
estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the
Town of Westlake. This process recognized that, when considering the Town's ability to issue and repay long-term debt, the entire
debt burden borne by the resident and businesses should be taken into account. However, this does not imply that every taxpayer is a
resident, and therefore responsible for repaying the debt, of each overlapping government.
Taxing Body
Town of Westlake Exhibit S-13
Demographic and Economic Statistics
Last Ten Fiscal Years – Unaudited
131
Year Population Income Income Age Enrollment Rate
2011 1063 110,487$ 117,447,681$ 41.5 530 6.2%
2012 1109 112,697 138,423,531 41.8 630 6.0%
2013 1,150 114,951 147,292,890 41.4 658 5.0%
2014 1,184 117,250 160,462,095 41.2 697 4.0%
2015 1,273 119,595 144,111,592 41.8 812 4.1%
2016 1,386 121,987 173,419,076 41.7 825 3.2%
2017 1,486 124,427 162,998,462 41.5 830 3.4%
2018 1,558 126,915 197,733,767 41.2 856 3.4%
2019 1,610 129,453 208,420,020 41.2 869 3.1%
2020 1,664 132,042 219,718,715 42.8 890 7.7%
Sources:
Municipal Advisory Council of Texas - Population
United States Census - Median Age
Tarrant County Unemployment Rate information taken from Texas Workforce Commission.
USA.com - Per Capita Income source
North Central Texas Council of Governments
1063 1109 1150 1184 1273 1386 1486 1558 1610 1664
0
500
1000
1500
2000
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Estimated Population
Town of Westlake Exhibit S-14 Principal Employers Current and Ten Years Ago – Unaudited 132 2010PercentagePercentageof Estimatedof EstimatedTotal TownTotal TownEmployer Employees Employment Employer Employees EmploymentSchwab 7,500 41.07% Fidelity Investments 3,600 41.63% Fidelity Investments 5,400 29.57% Core Logic 2,400 27.76% Travelocity 880 4.82% Wells Fargo 950 6.94% Wells Fargo 617 3.38% Chrysler Financial 600 10.99% Deloitte 500 2.74% McKesson Corporation 187 2.16% Sabre JLL Facilities 500 2.74% Marriott Solana Hotel 150 1.73% Core-Mark 434 2.38% Walco International 159 1.84% Verizon 405 2.22% Vaquero Club 132 1.53% Solera 330 1.81% Levi Strauss 92 1.06% Goosehead Insurance 239 1.31% Town of Westlake/Westlake Academy83 0.96% Sound Physicians 173 0.95% All Other Businesses 294 3.00% Marriott 143 0.78%Town of Westlake/Westlake Academy 142 0.78%All Other Businesses 999 5.47% Total 18,262 100% Total 8,647 100%Source: Cushman &Wakefield tenant records and contact with employers of the Town2020
Town of Westlake Exhibit S-15 Full-Time Equivalent Town Government Employees by Function/Program Last Ten Fiscal Years – Unaudited 133 Function/Program 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020General government Town Manager 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00Deputy Town Manager 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.00 1.00Assistant Town Manager 0.00 0.00 0.75 0.90 1.00 0.90 1.00 1.00 1.00 1.00 Assistant to Town Manager 1.00 0.75 0.00 0.00 0.00 0.50 0.50 0.75 0.000.00 Administrative 0.75 0.75 1.00 0.50 0.50 0.00 1.50 1.00 1.00 1.00 Building official 1.33 1.33 1.50 1.66 1.66 3.17 4.00 4.00 4.00 4.00 Town secretary 1.00 1.00 1.00 1.00 1.25 1.25 1.50 1.50 1.50 1.00Facilities/Grounds maintenance1.08 0.83 1.00 1.09 1.34 1.58 0.50 1.75 1.00 0.83 Municipal 4.50 3.75 4.75 5.10 5.00 4.60 4.00 3.50 4.25 4.00 Finance 3.00 3.00 3.00 4.00 4.00 4.25 4.00 4.00 4.00 3.00Payroll/Human Resources 1.33 1.33 2.00 2.00 2.00 2.00 2.00 2.00 2.00 1.00Information Technology 0.00 0.00 0.00 1.00 1.00 1.00 1.00 2.00 2.00 2.00Public safety (EMS) 9.00 9.00 10.00 13.25 14.25 14.25 11.00 15.50 15.50 15.00 Culture and recreation 0.75 0.50 0.75 0.84 0.84 0.84 0.50 0.50 1.00 0.83 Public works 1.50 2.00 3.00 2.66 2.66 2.67 3.00 4.00 4.00 4.00 Marketing and public affairs 0.00 1.00 1.00 2.00 2.00 2.00 2.00 2.00 2.001.00 Education 59.44 67.48 76.18 91.18 93.65 95.31 95.05 98.00 95.00 101.00 Total 85.68 93.72 106.93 128.18 132.15 135.32 132.55 142.50140.25 141.66Source: Prior Town budgets and Academy personnel recordsNote: 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 134 Function/Program 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020General governmentPermits issued 70 85 132 144 159 218 217 259 250 193Permit values 21,173,592$ 29,481,047$ 50,544,048$ 59,358,904$ 80,011,354$ 87,307,794$ 262,690,940$ 311,013,915$ 332,197,798$ 65,739,881$ Police (Contract with Keller PD)Motor vehicle stops 9,829 12,221 9,993 9,579 10,432 11,109 10,718 8,3397,729 7,457Traffic accident investigations 348 343 322 341 398 461 386 333 327 219Part I crimes 30 39 9 15 20 13 22 31 14 48DWI arrests 80506955626670502533Fire/EMSFire runs 191 181 238 211 211 257 248 320 235 308Ambulance runs 264 266 286 240 253 288 269 202 206 128Inspections 71 54 96 286 261 246 290 188 227 103Public Works - GeneralStreet resurfacing (LF) 3,800 30,000 - - - - 6,000 - - 5,012 Potholes repaired 36 6 2 6 20 20 10 5 8 10Public Works - UtilityNumber of water accounts 500 568 614 651 713 752 810 835 762 773Water main breaks 4 4 3 1 1 - - 1 2 4 Avg daily consumption MG (water) 1.200 1.100 1.090 1.045 1.021 1.122 1.233 1.400 1.209 1.000Peak daily consumption MG (water) 2.540 2.600 2.480 2.690 2.770 1.5861.646 1.564 2.709 2.709System capacity - MG (water) 1.685 1.685 1.685 2.685 2.685 2.685 2.6852.685 2.685 2.685Water purchased (in gallons x 000) 443,222 407,305 401,457 381,482 372,838 409,817 450,208 510,931 441,352 462,529Water sold (in gallons x 1000) 385,320 376,496 357,297 347,148 360,000 350,000 419,520 470,168 422,635 492,376WastewaterNumber of new sewer connections 245 292 325 350 384 403 454 503 541 545Avg daily sewage treatment 0.163 0.136 0.151 0.208 0.166 0.132 0.176 1.171 1.171 0.210 (thousands of gallons)Source: Various Town departmentsNotes: 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 135 Function/Program 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020FireStations 1111111111Public Works - UtilityPump station 1111111111Lift station 3333333333Telecommunications Duct Bank (LF) 57,783 57,783 57,783 59,936 66,08466,084 82,231 82,231 82,231 86,711Telecommunications Duct Bank Manholes 122 122 122 122 140 140 140 140 140160Water Water mains (LF) 130,000 137,891 137,891 142,694 148,117 148,117 181,393 181,393 181,393 188,387Fire hydrants 188 191 191 201 214 214 256 256 256 267Storage capacity MG 1,685 1,685 1,685 2,685 2,685 2,685 2,685 2,685 2,685 2,685WastewaterSanitary sewers (LF) 94,000 94,000 94,000 98,964 104,373 104,373 123,168 123,168 123,168 128,923Manholes 304 304 304 326 355 355 444 444 444 467Public Works - UtilityStreets (miles) 10.80 10.25 10.25 10.25 10.50 10.42 10.42 10.42 10.84 10.84Traffic signals (school zone flashers) 2 2 2 2 2 2 2.0 2.0 2.0 2.0 Parks and recreationOpen Space (acres) 25 25 25 27 27 27 27.0 27.0 27.0 27.0 Playgrounds 2 2 2 2 2 2.0 2.0 2.0 2.0 2.0 Softball/soccer field 1 1 1 1 1 1.0 1.0 1.0 1.0 1.0 Football field 1 1 1 1 1 1.0 1.0 1.0 1.0 1.0 Public trails (miles) 5.0 5.0 5.0 7.0 8.5 8.5 8.5 15.0 16.0 16.0 Source: Various Town departmentsNote: 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 TxDotFiscal Year