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HomeMy WebLinkAboutResolution No. 2025-058 Accepting Annual Comprehensive Financial ReportRESOLUTION NO. 2025-058 F. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FARMERS FARMERS BRANCH, TEXAS ACCEPTING THE ANNUAL BRANC COMPREHENSIVE FINANCIAL REPORT (ACFR) FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024, AS AUDITED AND PRESENTED BY FORVIS MAZARS, LLP.; PROVIDING FOR FILING IN THE OFFICE OF THE CITY SECRETARY; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, Chapter 103 of the Texas Local Government Code requires the City of Farmers Branch to have its records and accounts audited annually and an annual financial statement prepared based on the audit; and WHEREAS, the firm of Forvis Mazars, LLP has audited the financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information for the City of Farmers Branch as of and for the year ended September 30, 2024, and the related notes to the financial statements, which collectively comprise the City's basic financial statements and has presented these to the City Council; and WHEREAS, upon full review and consideration of the ACFR for the year ended September 30, 2024, and all matters related thereto, the City Council is of the opinion that it should be accepted as presented and filed in the City Secretary's Office. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FARMERS BRANCH, TEXAS, THAT: SECTION 1. The ACFR for the year ended September 30, 2024, as audited by Forvis Mazars, LLP and presented at the meeting at which this Resolution was approved is hereby accepted and shall be placed on file in the office of the City Secretary as the law provides and made available for public review and inspection. SECTION 2. This Resolution shall take effect immediately upon its passage. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF FARMERS BRANCH, TEXAS, THIS 22nd DAY OF APRIL 2025. ATTEST: _S a e son, City Secretary APP VED: Terry L e, Mayor APPROVED AS TO FORM: Uim C ---A - Whitt Wyatt, 'i yAttorney [vE04.02.2025] Ic ,00\151 CITY OF a - - FARM ERS BRANCH I f I TEXAS ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 2024 n DRAFT Z'/ 01""02%w City of Farmers Branch, Texas Annual Comprehensive Financial Report For the Year Ended September 30, 2024 City Council: Terry Lynne Mayor Omar Roman Mayor Pro Tem, District 1 Martin Baird District 2 David Reid District 3 Richard Jackson Deputy Mayor Pro Tem, District 4 Roger Neal District 5 (From Left) Mayor Pro Tem Omar Roman, Councilman Martin Baird, Councilman Roger Neal, Councilman Martin Baird, Mayor Terry Lynne, Deputy Mayor Pro Tem Richard Jackson City Manager Benjamin Williamson Prepared by the City of Farmers Branch Finance Department DRAFT 41101202,r-. Annual Comprehensive Financial Report For the Year Ended September 30, 2024 Table of Contents INTRODUCTORY SECTION (UNAUDITED): Exhibit Page Letter of Transmittal Organization Chart vi List of Principal Officials vii Council District Boundaries viii Certificate of Achievement ix FINANCIAL SECTION: Independent Auditors' Report 1 Management's Discussion and Analysis (unaudited) 4 Basic Financial Statements: E-3 59 Govemment-wide Financial Statements: Statement of Net Position A-1 12 Statement of Activities A-2 13 Fund Financial Statements: F-1 62 Governmental Funds: F -1A 63 Balance Sheet B-1 15 Reconciliation of the Governmental Funds Balance Sheet to the Government -wide Statement of Net Position B-2 17 Statement of Revenues, Expenditures, and Changes in Fund Balances B-3 1 B Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities B-4 20 Statement of Revenues, Expenditures, and Changes in Fund Balances - General Fund - Budget and Actual B-5 21 Statement of Revenues, Expenditures, and Changes in Fund Balances - Grants Fund - Budget and Actual B-6 22 Proprietary Funds: G-2 83 Statement of Net Position G1 23 Statement of Revenues, Expenses, and Changes in Fund Net Position C-2 24 Statement of Cash Flows C-3 25 Notes to Basic Financial Statements D-1 27 Required Supplementary Information (unaudited) Texas Municipal Retirement System - Schedule of Changes in Net Pension Liability and Related Ratios - Last Ten Fiscal Years (will ultimately be displayed) E-1 57 Texas Municipal Retirement System - Schedule of Contributions - Last Ten Fiscal Years E-2 58 Retiree Health Plan - Schedules of Changes in Total OPEB Liability and Related Ratios - Last Ten Fiscal Years (will ultimately be displayed) E-3 59 Other Supplementary Information (unaudited): Combining and Individual Fund Statements and Schedules: Combining Financial Statements - Nonmajor Governmental Funds: Combining Balance Sheet- Summary F-1 62 Combining Balance Sheet- Nonmajor Special Revenue Funds F -1A 63 Combining Balance Sheet- Nonmajor Capital Projects Funds F-1 B 65 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Summary F-2 67 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Special Revenue Funds F -2A 68 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Capital Projects Funds F -2B 70 Schedules of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds G-1 73 Debt Service Fund G-2 83 Combining Financial Statements - Internal Service Funds: Combining Statement of Net Position H-1 85 Combining Statement of Revenues, Expenses, and Changes in Fund Net Position H-2 86 Combining Statement of Cash Flows H-3 87 (continued) DRAFT 4/10/202: Annual Comprehensive Financial Report For the Year Ended September 30, 2024 Table of Contents STATISTICAL SECTION (UNAUDITED): Table Page Net Position by Component - Last Ten Fiscal Years 1 89 Changes in Net Position - Last Ten Fiscal Years 2 91 Fund Balances, Governmental Funds - Last Ten Fiscal Years 3 93 Changes in Fund Balances, Governmental Funds - Last Ten Fiscal Years 4 95 Estimated Actual and Assessed Value of Taxable Property - Last Ten Fiscal Years 5 97 Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years 6 99 Direct and Overlapping Property Tax Levies- Last Ten Fiscal Years 7 100 Principal Property Taxpayers - Current Year and Nine Years Ago 8 101 Property Tax Levies and Collections - Last Ten Fiscal Years 9 102 Ratios of Outstanding Debt by Type - Last Ten Fiscal Years 10 103 Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years 11 104 Direct and Overlapping Governmental Activities Debt- September 30, 2023 12 105 Demographic Statistics - Last Ten Fiscal Years 13 106 Principal Employers - Current Year and Nine Years Ago 14 107 Full -Time Equivalent City Government Employees by Function/Program - Last Ten Fiscal Years 15 108 Operating Indicators by Function/Program - Last Ten Fiscal Years 16 109 Capital Asset Statistics by Function[Program - Last Ten Fiscal Years 17 111 Schedule of Insurance Policies in Force - September 30, 2023 18 113 CONTINUING FINANCIAL DISCLOSURE SECTION (UNAUDITED): Valuation, Exemptions, and General Obligation Debt CD -1 115 Taxable Assessed Valuations by Category CD -2 116 Valuation and General Obligation Debt History CD -3 117 Tax Rate, Levy, and Collection History - Last Five Fiscal Years CD -4 118 Ten Largest Taxpayers - Fiscal Year 2022 CD -5 119 Tax Adequacy CD -6 120 General Obligation Debt Service Requirements CD -7 121 Interest and Sinking Fund Budget Projection CD -8 122 Computation of Self -Supporting Debt CD -9 123 Hotel/Motel Tax Revenue - Last Ten Fiscal Years CD -10 124 Hotel Occupancy Taxpayers - September 30, 2023 CD -11 125 Changes in Net Position - Governmental Activities - Last Five Fiscal Years CD -12 126 General Fund Revenue and Expenditure History - Fiscal Years Ended September 30 CD -13 127 Municipal Sales Tax History - Last Five Fiscal Years CD -14 128 Current Investments - September 30, 2023 CD -15 129 Historical Water and Wastewater Usage - Last Five Fiscal Years CD -16 130 Top Ten Water Consumers - September 30, 2023 CD -17 131 Monthly Water and Sewer Rates - Last Ten Fiscal Years CD -18 132 Condensed Statement of Water and Sewer System Operations - Fiscal Years Ended September 30 CD -19 133 Authorized but Unissued General Obligation Bonds CD -20 134 (concluded) DRAFT 4/10/20?F M AV, FARMERS BRANCH April 23, 2025 Honorable Mayor Terry Lynne, Members of the Farmers Branch City Council, and Citizens of Farmers Branch, Texas City of Farmers Branch 13000 William Dodson Parkway Farmers Branch, Texas 75234 I am pleased to submit the Annual Comprehensive Financial Report (ACFR) of the City of Farmers Branch, Texas (the City) for the year ended September 30, 2024. The ACFR provides accurate and meaningful information concerning the City's financial condition and performance. In addition, independent auditors have verified that the City has fairly presented its financial position, in all material respects, in accordance with accounting principles generally accepted in the United States of America. The ACFR satisfies Section 103.001 of Texas Local Government Code requiring annual audits of all municipalities. Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the City. We believe the data is accurate in all material respects and is presented in a manner that fairly sets forth the financial position and results of the City. We also believe all disclosures necessary to enable the reader to gain an understanding of the City's financial affairs are included. To provide a reasonable basis for making these representations, City management has an established comprehensive internal control framework that is designed: 1) to protect the City's assets from loss, theft, or misuse; and 2) to compile sufficient, reliable information for the preparation of the City's financial statements, in conformity with Generally Accepted Accounting Principles (GAAP). Because the cost of internal controls should not outweigh their benefits, the City's comprehensive framework of internal controls is designed to provide reasonable, rather than absolute, assurance that the financial statements are free from material misstatement. The City's financial statements were audited by Forvis Mazars, LLP, a licensed certified public accountants' firm. The goal of the independent audit is to provide reasonable assurance that the financial statements are free of material misstatement. The independent audit involves: • examining evidence on a test basis that supports the amounts and disclosures in the financial statements, • assessing the accounting principles used and significant estimates made by management • evaluating the overall financial statement presentation. DRAFT 4/ 0/20 The independent auditors concluded that the City's financial statements are in conformity with GAAP, are fairly presented, and there is a reasonable basis for providing an unmodified opinion. The independent auditor's report is presented as the first component of the financial section of this report. The financial statements audit is part of a broader, federally mandated "Single Audit," which is designed to meet the special needs of federal granting agencies. These reports are available in the City's ACFR. GAAP requires management to provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of a Management Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A. The City's MD&A is found immediately following the report of the independent auditors. Reporting Entity This report includes all funds of the City including its blended component units and joint ventures. Component units are legally separate entities for which the City is financially accountable, but are not part of the City's operations. The Farmers Branch Tax Increment Financing Districts No. 2 and No. 4, Farmers Branch Tax Increment Reinvestment Zone No. 3, and the Farmers Branch Local Government Corporation (FBLGC) are included as blended component units and the North Texas Emergency Communications Center, Inc. (NTECC) and North Dallas County Water Supply Corporation (NDCWSC) are included as joint ventures. Additional information on these six entities can be found in the notes to the financial statements. Profile of Farmers Branch The City covers approximately 12.1 square miles and is conveniently located on Dallas' northern border. It lies in the heart of an 11 -county area that has emerged as a premier commercial, financial, and trading center. Two major interstate highways (IH -35 and IH -635), the Dallas North Tollway and the President George Bush Turnpike, border the city. The Dallas/Fort Worth International Airport and the Dallas Love Field Airport are both only minutes from Farmers Branch. The City of Farmers Branch was incorporated in 1946 under the general laws of the State of Texas. In 1956, a home -rule charter was approved adopting a Council -Manager form of government. The Charter can be amended only by a vote of the people and provides for six non-partisan Council members, including the Mayor, to be elected to staggered terms of three years, with the terms of two members expiring every year. Term limits allow two terms for at - large members and an additional two terms for an at -large member who becomes Mayor. The Council is responsible for enacting ordinances, resolutions, and regulations governing the City as well as adopting the annual budget which serves as the foundation for financial planning and control. The City Council appoints the City Manager, who has full responsibility for carrying out Council policies and administering City operations. The Council also appoints the Municipal Judge and various advisory boards. The City Manager is the Chief Executive Officer for the City. 6 DRAFT 4/ 0/209,r: The Farmers Branch population is estimated at 36,917 (July 2023 estimate, Census.gov), with a daytime population in excess of 75,000. The City provides a full range of municipal services including water/sewer and stormwater utility services, sanitation/solid waste services, police and fire protection, emergency ambulance service, municipal courts, building code enforcement, library, parks and recreation, tourism, traffic engineering, and construction and maintenance of streets and infrastructure. The City currently supports a staff of 488 full time employees. Factors Affecting Financial Condition Local Economy Farmers Branch is located in the center of the Dallas -Fort Worth -Arlington metropolitan area. The metro area has a broadly diversified economic base, low unemployment rate, growing labor force, and a superior business climate with economic measures that are superior to the United States as a whole. The metroplex population gained more people over the past decade than any other U.S. metro area. The metro area is comprised of 8,676 square miles with 8.1 million in population. The median household income is $86,860. The City of Farmers Branch has an unemployment rate of 3.9% (July 2023 estimate, Census.gov) with a median per capita family income of $87,702 (2023 dollars, 2019-2023). The owner - occupied housing unit rate is 46.1% with a median value of owner -occupied housing units of $322,000 (2019-2023). High school graduates or higher comprise 85% of the population age 15 and above, with 48.2% attaining a bachelor's degree or higher. 75.7% of the population over age 16 participate in the civilian labor force. Farmers Branch children are served by the Carrollton -Farmers Branch Independent School District, which has a total student population of 24,386 and a 92.67% graduation rate, maintaining 38 campus locations. Quick Facts shows that it is rated B+ by the Texas Education Agency Accreditation, Grade A financial rating. Students represent 116 countries with 66 languages spoken. Long Range Financial Planning The City has a multi-year financial and capital improvement plan where general ongoing operations and capital projects are prioritized based upon the City's annually updated strategic initiatives, which are in balance with expected funding resources. The City has a very healthy Unrestricted Net Position of nearly $75 million at the close of FY 2023/24, with $75.44 million in outstanding debt, of which $24.37 million is self-supporting (Dallas Stars) and is not paid from Ad Valorem Taxation. The City has $5.5 in authorized but unissued debt that will likely be issued over the next 12 months for water and sewer capital projects. Considering the City's long standing and consistent financial results, the City's Long - Term IDR, GO and CO rating from FitchRatings is AAA with a Stable Rating Outlook. S&P Global Ratings assigned its AAA rating with a Stable Outlook also. In their August 23, 2024, rating outlook, they stated, "The outlook reflects S&P Global Ratings' view of the city's healthy income and property wealth, benefitting from its participation in the dynamic Dallas -Fort Worth Metroplex, as well as its consistently strong budgetary performance and maintenance of very strong available reserves." D RA ` mr ' / 10/2 0 r".O Financial Policies The City's financial policies and practices set forth the basic framework for the fiscal management of the City. The policies and procedures were developed within the parameters established by applicable provisions of the Texas Local Government Code and Government Code, and the City of Farmers Branch Charter. The City invests funds prudently and has adopted an investment policy, which is reviewed annually by the City Council in accordance with the Texas Public Funds Investment Act. The Fund Balance and Unrestricted Net Position Balance in each of the funds more than covers working capital requirements for four months of operations. All other policies and procedures for accounting, budgeting, procurement, capital improvements, asset management, and risk management are approved by the Finance Director and City Manager. Financial Results During this past fiscal year, the City accomplished many initiatives to enhance livability, invest in infrastructure, and support economic development initiatives. The FY 2023/24 adopted property tax rate of 57.3559 cents per $100 valuation was a reduction from the prior year rate of 58.9 cents, which places Farmers Branch as one of the lowest property tax rates in Dallas County. Taxable Assessed Value, net of exemptions and reductions, was $9.3 billion, increasing by over $3 billion in just three years. Property, Sales, and Franchise Taxes in the General Fund were $73.8 million, up from $71.4 million in the prior year, or 3.3%. Over just four years, this is an increase from $51.5 million in FY 2019/20, or 43.2%. Total General Fund revenues were $93.6 million, up from $88 million in the prior year, a 6.4% increase. The General Fund Balance at fiscal year end was $45.8 million, which is an increase of $7.3 million. Fund Balance has essentially doubled over the past 4 years. For the Water and Sewer Enterprise Fund, the Unrestricted Net Position at fiscal year end was $26.9 million, nearly double the level just four years ago. The Stormwater Utility Enterprise Fund had an Unrestricted Net Position of just under $2 million which funds ongoing stormwater capital projects. Major budget initiatives for the fiscal year included: • Building enhancements and renovations including the lobby of City Hall, the Justice Center and Branch Connection Senior Center, • Animal Shelter enhancements to include a cat solarium (funded by an endowment), • Dallas Area Rapid Transit authority projects of approximately $5.9 million, • Approximately $8.5 million in new grant funded projects focused primarily on connectivity and transportation activities, • Street revitalization and improvements, • Storm water and drainage improvements, • Squire Park enhancements, • Increased public safety funding, iv DRAFT /10/ 02%11W • Investments in neighborhoods and neighborhood partnerships, • Additional funding for the Revenue Stabilization Fund, • Council Chamber renovations, • Completion of an event center at the Historical Park, • Utility replacements, including inflow and infiltration projects, and • Landfill closure/post-closure funding. Awards and Acknowledgements The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Farmers Branch for its Annual Comprehensive Financial Report for the fiscal year ended September 30, 2023. The City has received this prestigious award for thirty-five consecutive years. In order to be awarded a Certificate of Achievement, the City must publish easily readable and efficiently organized financial statements that satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. The City believes its current financial statements continue to meet the Certificate of Achievement Program requirements and is submitting it to the GFOA to determine eligibility for another certificate. The preparation of this report would not be possible without the dedicated services of the entire staff of the Finance Department. I especially thank Pamela DeHon, Accounting Manager; and Suzanne Prichard, Budget Manager, for their countless hours of work on this financial report. Respectfully submitted, Benjamin Williamson City Manager LO N O N "Oft�O C z u Z V) 0 W N z n�4 LL °d U- v 0 CV N �.... Q .� N Flo W U RAII City of Farmers Branch, Texas List of Principal Officals / 0/2 2;. City Council Position District First Elected First Elected Terry Lynne Mayor N/A 2023 2026 Omar Roman Deputy Mayor Pro Tem, District 1 District 1 2022 2025 Martin Baird Councilmember, District 2 District 2 2023 2026 Tina Bennett -Burton Councilmember, District 3 District 3 2024 2027 Richard Jackson Mayor Pro Tem, District 4 District 4 2022 2025 David Merritt Councilmember, District 5 District 5 2024 2027 EXECUTIVE LEADERSHIP Benjamin Williamson City Manager Jawaria Tareen Deputy City Manager Shannon Willis City Judge Stacy Henderson City Secretary/Administrative Services & Communications Director Danielle Summers Community Services, Building Inspections & Code Enforcemen Director Perla Tavera Economic Development, Tourism & Planning Director Tammy Zimmerman Finance Director, Fleet & Facilities Director Daniel Latimer Fire Chief Yoko Matsumoto Human Resources Director Mark Samuels Innovation & Technology Director Robert Diaz Parks & Recreation Director Kevin McCoy Police Chief Ray Silva -Reyes Public Works Director 41 SII 4 DRAFT n/ 01202,r-., Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City, of Farmers Branch Texas For its Annual Comprehensive Financial Repoit For the Fiscal Year Ended September 30, 2023 P. � Executive DirectoTIGE0 DRAFT 4/10/20 E DRAFT 4/10/202E DRAFT 41101202%r".. DRAFT '/10/202.. CITY OF FARMERS BRANCH, TEXAS Management's Discussion and Analysis For the Fiscal Year Ended September 30, 2024 (Unaudited) As management of the City of Farmers Branch (City), we offer readers of the City's financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended September 30, 2024. We encourage readers to consider the information presented here in conjunction with additional information that we have fumished in our letter of transmittal, which can be found in the introductory section of this report. FINANCIAL HIGHLIGHTS • The City's total combined net position as presented on the Government -wide Statement of Net Position was $328,278,883, which represents an increase of $36,578,460 from the prior year. This was primarily due to increased revenue related to property taxes, investment earnings, and grant revenue in connection with the City's continued participation in the American Rescue Plan Act (ARPA) grant. This increase in net position, was also a result of cost saving efforts related to the City's expenditures. • The City's governmental funds reported combined ending fund balances of $94,743,659, a decrease of $7,714,480 in comparison with the prior year. The decrease was the result of capital outlay, primarily related to the Stars Multi -Sport Complex. • The unassigned fund balance for the general fund was $22,211,703 or 26.95 percent of total general fund expenditures plus other financing sources (uses). This represents a decrease of $1,201,721 from the prior fiscal year. • At the end of the current fiscal year, unrestricted fund balance (the total of the assigned and unassigned components of fund balance) for the general fund was $41,952,130 or 49.73 percent of total general fund expenditures. • The City's long-term liabilities decreased $17,133,184 during the current fiscal year primarily due to the City's net pension liability and compensated absences decreasing from prior year. The accounting standards for pensions will reflect more volatility in the amount of the liability from year-to-year. OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the City's basic financial statements. The City's basic financial statements are comprised of three components: 1) government -wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains supplementary information required to be presented by the Governmental Accounting Standards Board and other supplementary information in addition to the basic financial statements themselves. Government -wide Financial Statements - The government -wide financial statements are designed to provide readers with a broad overview of the City's finances, in a manner similar to a private -sector business. R C of The statement of net position presents information on all of the City s assets, liabilities, and deferred inflows/outflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the City's net position changed during the fiscal year. All changes in net position are reported when 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 (e.g., uncollected taxes and earned, but unused compensated absences). equired ortrponeMs City of Farmers Branch's Annual Financial Report r A r , Requied end oemanr opt" Wounabon Both of the government -wide financial statements distinguish functions of the City that su -y -- octad are principally supported by taxes and intergovernmental revenues (governmental activities) from 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 City include general government, public safety, public works, and culture and recreation. The business -type activities of the City include water and sewer and stormwater utilities. DRA'T .411 0 / 2 0 E., CITY OF FARMERS BRANCH, TEXAS Management's Discussion and Analysis For the Fiscal Year Ended September 30, 2024 (Unaudited) The government -wide financial statements can be found in Exhibit A of this report. 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 City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. All of the funds of the City can be divided into two categories - governmental funds and proprietary funds. Governmental Funds - Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide financial statements. However, unlike the government wide financial statements, governmental fund financial statements focus on current sources and uses 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 financing 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, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental funds balance sheet and the governmental funds statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate the comparison between governmental funds and governmental activities. The City maintains 27 governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund, grants fund, debt service fund, Dallas Stars Multi -Sport fund, and Non -Bond capital projects fund, which are the five major funds for the reporting year. Data from the other 22 funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report. The basic governmental fund financial statements can be found in Exhibit B of this report. Proprietary Funds - The City maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business -type activities in the government -wide financial statements. The City uses enterprise funds to account for its water and sanitary sewer utility and stormwater long-term construction projects. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City's various functions. The City uses its internal service funds to account for its facilities and fleet management, workers' compensation, and health claims funds. Because these services predominantly benefit governmental rather than business -type functions, they have been primarily included within governmental activities in the government -wide financial statements. Proprietary funds provide the same type of information as the government -wide financial statements, only in more detail. The water and sewer fund is considered a major fund of the City. All internal service funds are combined into a single aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report. The basic proprietary fund financial statements can be found in Exhibit C of this report. Notes to Basic Financial Statements - The notes provide additional information essential to a full understanding of the data provided in the government -wide and fund financial statements. The notes to basic financial statements can be found in Exhibit D of this report. Other Information - In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City's progress in funding its obligation to provide pension and other postemployment benefits (OPEB) to its employees. Required supplementary information can be found in Exhibit E of this report. The combining statements referred to earlier in connection with nonmajor governmental funds and internal service funds are presented following the required supplementary information on pensions and OPEB. Combining and individual statements and schedules can be found in Exhibit F through Exhibit H of this report. CITY OF FARMERS BRANCH, TEXAS Management's Discussion and Analysis For the Fiscal Year Ended September 30, 2024 (Unaudited) DRAFT 41101202.r-. GOVERNMENT -WIDE FINANCIAL ANALYSIS The City's net position, the amount that assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources, was $328,278,883 at the close of the most recent fiscal year. The largest portion of the City's combined net position in the amount of $243,583,089 reflects its investments in capital, lease and subscription assets (e.g., land, buildings, equipment, intangible assets, improvements, construction in progress, infrastructure, lease assets, and subscription assets (SBITAs)), less any debt used to acquire those assets that are still outstanding. The City uses these capital and lease assets to provide service to citizens; consequently, these assets are not available for future spending. Although the City's investment in its capital and lease 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 and lease assets themselves cannot be used to liquidate these liabilities. An additional portion of the City's net position in the amount of $11,412,361 represents resources that are subject to external restrictions on how they may be used. The remaining balance of the City's combined unrestricted net position is a surplus of $73,283,433 due to improving market conditions and increased taxes revenue. Unrestricted net position of $44,099,132 exists in the governmental activities net position. The unrestricted net position of the business -type activities is a positive balance of $29,184,301. The City generally can only use this net position to finance continuing water and sewer operations. Analysis of the City's Operations — During the current fiscal year, the net position for governmental activities increased $27,913,350 from the prior fiscal year for an ending balance of $222,328,693. This increase is attributable in large part to the development on the City's west side, which increased capital contributions, building permits and sales tax. Additionally, the increase is also attributed to an increase in revenue from property taxes, charges for services and other revenue areas. The net position of the business -type activities increased $8,665,110 from the prior fiscal year for an ending balance of $105,950,190. The City reduced its base water rate by one-half for residential customers for a period of one year. The development on the City's west side included capital contributions of $869,449 for the business -type activities. Transfers to governmental activities increased by $26,556 due to the advance funding of FY 2023-24 capital assets and an increase in transfers for CIP projects. CONDENSED NET POSITION Governmental Activities Business -Type Activities Total Primary Government 2024 2023 2024 2023 2024 2023 Current and other assets $ 133,435,974 $ 137,387,407 $ 31,286,257 $ 28,205,551 $ 164,722,231 $ 165,592,958 Capital, lease and subscription assets 219,921,720 191,404,639 79,097,780 72,246,253 299,019,500 263,650,892 Total assets 353,357,694 328,792,046 110,384,037 100,451,804 463,741,731 429,243,850 Total deferred outflows of resources 19,318,676 28,958,480 993,968 1,474,363 20,312,644 30,432,843 Noncurrent liabilities 118,524,411 135,032,624 2,257,332 2,882,303 120,781,743 137,914,927 Other liabilities 21,543,412 19,371,705 3,076,304 1,720,816 24,619,716 21,092,521 Total liabilities 140,067,823 154,404,329 5,333,636 4 603 119 145 401,459 159,007,448 Total deferred inflows of resources 10,279,854 8,930,854 94,179 37,968 10,374,033 8,968,822 Net position: Net investment in capital assets 166,817,200 150,702,636 76,765,889 71,461,488 243,583,089 222,164,124 Restricted 11,412,361 13,178,193 - -- 11,412,361 13,178,193 Unrestricted 44,099132 30,534,514 29,184,301 25,823,592 73,283,433 56,358,106 Total net position $ 222,328,693 $ 194,415,343 $ 105,950,190 $ 97,285,082. $ 328,278,883 $ 291,700,423 The largest portion of the City's combined net position in the amount of $243,583,089 reflects its investments in capital, lease and subscription assets (e.g., land, buildings, equipment, intangible assets, improvements, construction in progress, infrastructure, lease assets, and subscription assets (SBITAs)), less any debt used to acquire those assets that are still outstanding. The City uses these capital and lease assets to provide service to citizens; consequently, these assets are not available for future spending. Although the City's investment in its capital and lease 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 and lease assets themselves cannot be used to liquidate these liabilities. An additional portion of the City's net position in the amount of $11,412,361 represents resources that are subject to external restrictions on how they may be used. The remaining balance of the City's combined unrestricted net position is a surplus of $73,283,433 due to improving market conditions and increased taxes revenue. Unrestricted net position of $44,099,132 exists in the governmental activities net position. The unrestricted net position of the business -type activities is a positive balance of $29,184,301. The City generally can only use this net position to finance continuing water and sewer operations. Analysis of the City's Operations — During the current fiscal year, the net position for governmental activities increased $27,913,350 from the prior fiscal year for an ending balance of $222,328,693. This increase is attributable in large part to the development on the City's west side, which increased capital contributions, building permits and sales tax. Additionally, the increase is also attributed to an increase in revenue from property taxes, charges for services and other revenue areas. The net position of the business -type activities increased $8,665,110 from the prior fiscal year for an ending balance of $105,950,190. The City reduced its base water rate by one-half for residential customers for a period of one year. The development on the City's west side included capital contributions of $869,449 for the business -type activities. Transfers to governmental activities increased by $26,556 due to the advance funding of FY 2023-24 capital assets and an increase in transfers for CIP projects. CITY OF FARMERS BRANCH, TEXAS Managements Discussion and Analysis For the Fiscal Year Ended September 30, 2024 (Unaudited) DRAFT 41101202,r".. CHANGES IN NET POSITION 7 Govern mental Activities Business-Tp=e Activities Total - PrimervGovernment 2024 2023 2024 2023 2024 2023 Revenues: Program revenues: Charges for services $ 19,240,981 $ 27,271,284 $ 32,535,077 $ 32,168,051 $ 51,776,058 $ 59,439,335 Operating grants and contributions 815,576 2,356,770 - - 815,576 $ 2,356,770 Capital grants and contributions 1,349,652 1,733,548 869,449 683,747 2,219,101 2,417,295 General revenues: Taxes: Property taxes, levied for general purposes 45,710,705 42,362,924 - - 45,710,705 42,362,924 Property taxes, levied for debt service 4,451,622 4,799,484 - - 4,451,622 4,799,484 Sales and use taxes 24,406,225 25,344,604 - 24,406,225 25,344,604 Hotel/motel taxes 3,515,051 3,341,512 - 3,515,051 3,341,512 Franchise taxes 3,791,350 3,870,277 - 3,791,350 3,870,277 Tax increment financing 2,011,454 1,501,804 - - 2,011,454 1,501,804 Investment income (Ioss) 7,459,624 5,280,165 1,292,274 792,209 8,751,898 6,072,374 Gain on disposal of capital assets 260,392 849,647 - - 260,392 849,647 Miscellaneous 174,145 592,775 12,251 174,145 605,026 Grants not restricted to a specific purpose 5,078,575 1,745,580 5,078,575 1,745,580 Total revenues 118,265,352 121,050,374 34,696,800 33,656,258 152,962,152 154,706,632 Expenses: General government 21,150,357 27,032,249 - - 21,150,357 27,032,249 Public safety 38,959,551 36,077,852 - - 38,959,551 36,077,852 Public works 15,389,261 24,718,438 - - 15,389,261 24,718,438 Culture and recreation 18,277,084 16,848,177 - - 18,277,084 16,848,177 Interest on long-term debt 1,540,892 2,873,370 - - 1,540,892 2,873,370 Unallocated depreciation 178,508 487,635 - - 178,508 487,635 Water and sewer - - 20,780,323 19,540,609 20,780,323 19,540,609 Stormwater utility - - 107,716 _ 59,123 107,716 59,123 Total expenses 95,495,653 _ 108,037,721 20,888,039 19,599,732 116,383,692 127,637,453 Increase in net position before transfers 22,769,699 13,012,653 13,808,761 14,056,526 36,578,460 27,069,179 Transfers 5,143,651 5,117,095 (5,143,651} (5,117,095; Change in net position 27,913,350 18,129,748 8,665,110 8,939,431 36,578,460 27,069,179 Net position -beginning 194,415,343 176,285,595 97,285,08088� 291,700_423 264,631,244 Net position—ending $ 222,328,693 $ 194,415,343 $ 105,950,190 $ 97,285,080 $ 328,278 883 $ 291,700,423 7 RAFT 41101202r - CITY OF FARMERS BRANCH, TEXAS Management's Discussion and Analysis For the Fiscal Year Ended September 30, 2024 (Unaudited) FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS Governmental Funds - The focus of the City's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources at the end of the fiscal year. At the end of the current fiscal year, the City's governmental funds reported combined ending fund balances of $94,743,659. Of this total, $32,796,996 is restricted due to external limitations on its use, such as by debt covenants, legal restrictions, or intention of grantors, donors, or trustees. A total of $5,547,923 is considered nonspendable because it has been used for inventory and prepaid items. A total of $35,841,357 has been assigned meaning there are limitations resulting from its intended use, such as, payment of debt service, other capital assets, and for other purposes. The remaining $20,557,383 is unassigned and can be used for any lawful purpose. The general fund is the main operating fund of the City. At the end of the current fiscal year, unassigned fund balance of the general fund is $22,211,703, while total fund balance is $45,780,565. As a measure of the general fund's liquidity, it may be useful to compare the unassigned general fund balance and total general fund balance to total general fund expenditures and other financing sources and uses. Unassigned general fund balance represents 26.95 percent of total general fund expenditures plus other financing sources (uses), while total fund balance represents 55.54 percent of that same amount. The fund balance of the General fund increased $7,260,010 during the fiscal year. Revenues were $5,596,184 higher than the prior year. Property tax revenue increased $3,365,256 due primarily to higher valuations. Additionally, sales tax revenue decreased $938,379 due to a slight decrease in local spending reflecting national ecnomic volatility and uncertainty. Expenditures were $1,074,553 more than the prior year. This is mostly due to increased capital expenditures for various completed and ongoing capital projects. The Dallas Stars Multi -Sport fund had a significant decrease in fund balance of $15,819,033 due to large capital expenditures in connection with the construction of the Stars Multi -Sport Complex. The Grants fund had a minimal decrease of $402,083 related to a ARPA related capital expenditures in excess of grant and other revenue. The addition of the Debt Service fund with fund balance deficit of $(1,443,263) is a decrease of $1,731,066 from prior year. The Debt Service funds utilized their fund balance for a debt payment of $4,145,000 on the City's outstanding debt at fiscal year end. The decrease in the Debt Service Fund is attributable to rental installments received during the year in connection with the Stars Multi -Sport Complex, that will sit in unearned revenue until the tenant moves in. Proprietary Funds - The City's Water and Sewer fund and Stormwater Utility fund are the enterprise components of the City's proprietary funds. These funds' financial statements provide the same type of information found in the govemment-wide financial statements, but in more detail. The unrestricted net position of the Water and Sewer fund was $26,855,965 and the Stormwater Utility fund was $1,914,389. The internal service funds (the other component of proprietary funds) report activities that provide supplies and services for the City's various functions. The City uses internal service funds to account for facilities and fleet management and the City's workers' compensation and health insurance self- insurance programs. Because all of these services primarily benefit governmental rather than business -type activities, they have primarily been included with governmental activities in the govemment-wide financial statements. General Fund Budgetary Highlights — During the fiscal year ending September 30, 2024, the City Council adopted amendments to the budget. In the general fund, final budgeted revenues increased $4,240,100 and final budgeted expenditures increased $11,231,300 compared to the original budget. The budget for sale of general capital assets, which is an "other financing source", decreased $(125,000) due to City -owned property that was not sold during 2024 as budgeted. Variances with Final Budget are denoted in Exhibit B-5. During the fiscal year ending September 30, 2024, the most notable variances from the final budget include an increase of $694,745 in investment income and an increase of $255,195 in charges for services. Actual expenditures for the General Fund were less than budgeted by $14.6 million. This is due to several factors. Supply chain shortages and increased lead time caused a reduction in the purchase of budgeted capital assets. Also, a large amount of staff vacancies due to retirements and a highly competitive job market resulted in a decrease in personnel costs. CITY OF FARMERS BRANCH, TEXAS Management's Discussion and Analysis For the Fiscal Year Ended September 30, 2024 (Unaudited) CRAFT 41101909,r. - CAPITAL, LEASE AND SUBSCRIPTION ASSETS The City's investment in capital, lease and subscription assets for its government -wide activities as of September 30, 2024, amounts to $299,019,500 (net of accumulated depreciation and amortization). This investment in capital, lease and subscription assets includes land, buildings, equipment, improvements, infrastructure, intangible assets, construction in progress, and lease and subscription assets. Major capital asset events during the current fiscal year included the following: Completed Pro,,ects • Street Revitalization & Improvements - $3,915,760 • Inflow & Infiltration Improvements - $6,500,791 • Cooks Creek Improvements - $3,309,596 Amounts Spent for On oin Pro'ects • Justice Center - $855,391 • Venue 1842 - $2,979,996 • Stars Cener Facility - $16,954,078 • Signature Park - Phase I - $2,021,138 • Signature Park - Phase II - $1,414,091 • Utility Replacement - $3,912,343 • Public Drainage Projects - $2,528,603 • Branch Connection (Senior Center) - $2,202,046 Land Buildings Equipment Improvements Infrastructure Intangible assets SBITAs Lease building Construction in progress Total Capital, Lease and Subscription Assets at Year -End Net of Accumulated Depreciation and Amortization Governmental Activities 2024 2023 $ 39,411,462 $ 39,411,462 49,637,757 51,251,673 10,008,986 8,952,915 11,492,204 11, 769,879 63,528,899 63,101,239 484,734 545,969 445,435 457,756 - 223,437 44,912,243 15,690,309 Business -Tyre Activities 2024 2023 $ 603,364 $ 603,364 5,301,025 5,568,909 1,957,279 1,737,731 10,982 12,128 57,626,614 46,731,985 592,648 333,396 13,005,868 17,258,740 Total - Prima, v Government 2024 2023 $ 40,014,826 $ 40,014,826 54,938,782 56,820,582 11,966,265 10,690,646 11,503,186 11,782,007 121,155,513 109,833,224 1,077,382 879,365 445,435 457,756 - 223,437 57, 918,111 32,949, 049 $ 219,921,720 $191,404,639 $ 79097,780 $ 72,246,253 $ 299,019,500 $ 263,650,892 Additional information on the City's capital, lease, and subscription assets can be found in Note 3.D. Capital, Lease and Subscription Assets. DRAFT CITY OF FARMERS BRANCH, TEXAS Management's Discussion and Analysis For the Fiscal Year Ended September 30, 2024 (Unaudited) DEBT ADMINISTRATION / 0 / 02� At the end of the current fiscal year, the City had a total bonded debt of $65,751,051. A portion of this debt, approximately 37%, is considered to be self-supporting in that it will be repaid from sources other than property taxes. A portion in the amount of $1,155,000 comprises debt to be repaid from hotel/motel tax revenues and lease payments from the Dallas Stars. An additional $23.2 million comprises debt to be repaid from lease payments related to the Dallas Stars Multi -Sport Complex. All self-supporting debt is backed by the full faith and credit of the government. Outstanding Debt at Year -End Governmental Activities 2024 2023 General obligation bonds $ 65,751,051 $ 70,098,877 Total $ 65,751,051 $ 70,09887-7 The City maintains favorable ratings from bond rating agencies. The ratings are as follows: Additional information on the City's long term -debt can be found in Note 3.G. Long -Term Liabilities. ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES The fiscal year 2024-25 budget has been prepared with the objectives of continuing significant investments in capital improvements, maintaining the financial strength of the City, meeting the needs of citizens, implementing the priorities of City Council, and maintaining AAA -rated financial performance. The budget has been developed to be responsive to residents and businesses feeling financial stress and includes a decrease in the property tax rate to $0.5435 providing for a $0.0255 tax decrease to all property taxpayers; building enhancements and renovations, including the relocation of the City's consolidated dispatch center (NTECC); continued investments in the City's revenue stabilization and landfill closure/post-closure funds; continued investments in neighborhoods and neighborhood partnerships; continued utility replacement and inflow and infiltration funding; completion of automated Itron water meter change -outs to provide consumers with better information and alerts about their water usage; and, the development of staffing capacity, equipment, and capital investment to realize high -impact services and projects without draining critical reserves. Revenues are projected to decrease 2.93% from the prior year amended budget. Property tax and sales tax revenue represent 76.52% of total GF revenues. In past years, the City has had the fortune of a strong tax base and fund balances. The Dallas Central Appraisal District provides cities with a certified property value. The certified taxable value (including an estimated minimum value of properties under dispute) is $9,927,205,747, which represents an increase of 6.97% increase over prior year values. New construction is valued at $139,511,100. The commercial tax base, including real and business personal property, represents a strong 72.46% of taxable value. 10 Fitch Standard & Ratings Date Confirmed Poor's Date Confirmed 2011 General obligation refunding bonds, taxable AAA N/A AAA August 23, 2024 2013 Certificates of obligation AAA N/A AAA August 23, 2024 2014 General obligation AAA August 22, 2024 AAA August 23, 2024 2016 Certificates of obligation AAA August 22, 2024 AAA August 23, 2024 2018 Certificates of obligation AAA August 22, 2024 AAA August 23, 2024 2018 General obligation AAA August 22, 2024 AAA August 23, 2024 2020 General obligation refunding bonds AAA August 22, 2024 AAA August 23, 2024 2020 General obligation improvement bonds AAA August 22, 2024 AAA August 23, 2024 2022 Certificates of obligation AAA August 22, 2024 AAA August 23, 2024 Additional information on the City's long term -debt can be found in Note 3.G. Long -Term Liabilities. ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES The fiscal year 2024-25 budget has been prepared with the objectives of continuing significant investments in capital improvements, maintaining the financial strength of the City, meeting the needs of citizens, implementing the priorities of City Council, and maintaining AAA -rated financial performance. The budget has been developed to be responsive to residents and businesses feeling financial stress and includes a decrease in the property tax rate to $0.5435 providing for a $0.0255 tax decrease to all property taxpayers; building enhancements and renovations, including the relocation of the City's consolidated dispatch center (NTECC); continued investments in the City's revenue stabilization and landfill closure/post-closure funds; continued investments in neighborhoods and neighborhood partnerships; continued utility replacement and inflow and infiltration funding; completion of automated Itron water meter change -outs to provide consumers with better information and alerts about their water usage; and, the development of staffing capacity, equipment, and capital investment to realize high -impact services and projects without draining critical reserves. Revenues are projected to decrease 2.93% from the prior year amended budget. Property tax and sales tax revenue represent 76.52% of total GF revenues. In past years, the City has had the fortune of a strong tax base and fund balances. The Dallas Central Appraisal District provides cities with a certified property value. The certified taxable value (including an estimated minimum value of properties under dispute) is $9,927,205,747, which represents an increase of 6.97% increase over prior year values. New construction is valued at $139,511,100. The commercial tax base, including real and business personal property, represents a strong 72.46% of taxable value. 10 DRAFT 4110120e."E., CITY OF FARMERS BRANCH, TEXAS Management's Discussion and Analysis For the Fiscal Year Ended September 30, 2024 (Unaudited) The property tax rate of 54.35 cents per $100 valuation is a $0.0255 decrease from the prior year. A property tax rate at this level continues to position Farmers Branch at one of the lowest rates in Dallas County. Sales tax revenues can fluctuate greatly due to national, state, and local economic conditions; however, the 2024-25 budget reflects the leveling -off of sales tax revenues in anticipation of an economic downturn and a slowdown in consumer spending. Budgeted general fund expenditures are expected to decrease by approximately $6.4 million from the prior year's amended budget. This decrease is primarily due to the advance funding of 2024-25 capital projects in the 2023-24 fiscal year, a reduced allocation for the Parks Master Plan and trail projects, and a reduction in contract services. The 2024-25 budget includes the addition of ten full-time employees, seven of which are public safety positions. The 2024-25 includes the implementation of a nominal monthly fee for refuse collection to be directed towards prepaying landfill closure/post-closure costs. Enterprise Fund operating expenditures are budgeted at approximately $1.5M more than the 2023-24 amended budget due primarily to increased rates for water and treated sewer. REQUEST FOR INFORMATION This financial report is designed to provide our citizens, customers, investors, and creditors with a general overview of the City's finances. If you have questions about this report or need any additional information, contact the Finance Department, Attn: Director of Finance, at 13000 William Dodson Parkway, Farmers Branch, Texas 75234, or call (972) 247-3131. CITY OF FARMERS BRANCH TEXAS STATEMENT OF NET POSITION SEPTEMBER 30, 2024 ASSETS Cash, cash equivalents, and investments Receivables (net of allowance for uncollectibles) Inventories and land held for resale Deposits Prepaid items Equity interest in joint venture Capital, lease and subscription assets Nondepreaable Depreciable, net of accumulated depreciation/amortization Total assets DEFERRED OUTFLOWS OF RESOURCES Deferred outflows from pensions Deferred outflows from OPEB Deferred outflows on refunding Total deferred outflows LIABILITIES Accounts payable and other accrued liabilities Retainage payable Accrued interest payable Deposits payable Internal balances Unearned revenue Noncurrent liabilities Due within one year Due in more than one year Total liabilities DEFERRED INFLOWS OF RESOURCES Deferred inflows from pensions Deferred inflows from OPEB Deferred inflows from leases and PPPs Total deferred inflows of resources Net Position Net investment in capital assets Restricted for. Construction of capital assets Promotion of tourism Purpose of grantors/trustees Law enforcement Fire training Economic development Unrestricted Total net position The accompanying notes are an integral part of the financial statements. 12 DRAF /0/OE EXHIBIT A-1 Primary Government Govemmental Business -Type Activities Activities Total $ 106,828,129 $ 21,279,884 $ 128,108,013 18,521,719 5,037,277 23,558,996 5,537,093 - 5,537,093 35,000 - 35,000 67,616 11,760 79,376 2,446,417 4,957,336 7,403,753 84,323,705 13,609,232 97,932,937 135,598,015 _ 65_488,548 201,086 563 353,357,694 110,384,037 463,741,731 18,705,175 934,865 19,640,040 597,590 59,103 656,693 15,911 - 15,911 19,318 676 993,968 20,312,644 . 11,424,515 2,644,101 14,068,616 1,542,657 378,843 1,921,500 370,886 - 370,886 524,318 467,307 991,625 413,947 (413,947) - 7,267,089 - 7,267,089 5,993,876 68,347 6,062,223 112,530,535 2,188,985 114,719,520 140,067,823 5,333,636 145,401,459 1,566,655 78,300 1,644,955 160,559 15,879 176,438 8,552,640 - 8,552,640 10,279,854 94,179 10,374,033 166,817,200 76,765,889 243,583,089 6,132,913 6,132,913 3,102,142 3,102,142 945,091 945,091 736,651 736,651 16,048 - 16,048 479,516 - 479,516 44,099.132 29,184,301 73,283433 $ 222,328,693 $ 105,950,190 $ 328,278,883 CITY OF FARMERS BRANCH, TEXAS STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 DRA T4.1101202.E. PTgram Revenues EXHIBIT A-2 Business -type activities Water and sewer 20,780,323 30,752,465 869,449 Stormwater utility 107,716 1,782,612 Total business -type activities 20,888,039 32,535,077 - _ 869,449 Total primary government $ 1161383,692 $ 51,776,058 $ 815,576 $ 2,219,101 General revenues and transfers Taxes: Property taxes - general purpose Property taxes - debt service Sales and use taxes Hotel motel taxes Franchise taxes Tax increment financing Investment income Gain on disposal of capital assets Miscellaneous Grants not restricted to a specific purpose Transfers Total general revenues and transfers Change in net position Net position - beginning Net position - ending The accompanying notes are an integral part of the financial statements. 13 Operating Capital Charges for Grants and Grants and Functions/Programs Expenses Services Contributions Contributions Primary government: Governmental activities General government $ 21,150,357 $ 2,381,471 $ 83,887 $ Public safety 38,959,551 4,076,158 724,364 Public works 15,389,261 8,966,993 - 1,349,652 Culture and recreation 18,277,084 3,816,359 7,325 - Interest on long-term debt 1,540,892 - - Unallocated depreciation 178,506 Total governmental activities 95,495 653 19,240,981 815,576 1,349,652 Business -type activities Water and sewer 20,780,323 30,752,465 869,449 Stormwater utility 107,716 1,782,612 Total business -type activities 20,888,039 32,535,077 - _ 869,449 Total primary government $ 1161383,692 $ 51,776,058 $ 815,576 $ 2,219,101 General revenues and transfers Taxes: Property taxes - general purpose Property taxes - debt service Sales and use taxes Hotel motel taxes Franchise taxes Tax increment financing Investment income Gain on disposal of capital assets Miscellaneous Grants not restricted to a specific purpose Transfers Total general revenues and transfers Change in net position Net position - beginning Net position - ending The accompanying notes are an integral part of the financial statements. 13 DRAFT /1 0/202E Net (Expense) Revenue and Changes in Net Position FunctionsfPro rams Primary Government Governmental Business -type Activities Activities Total Primary government: Water and sewer Govemmental activities 10,841,591 Stormwater utility General govemment $ (18,664,999) $ $ (18,684,999) Public safety (34,159,029) (34,159,029) Public works (5,072,616) (5,072,616) Culture and recreation (14,453,400) (14,453,400) Interest on long-term debt (1,540,892) (1,540,892) Unallocated depreciation (178,508) _ (178,508) Total governmental activities (74,089,444)_ _ (74,089 444 Business -type activities Water and sewer 10,841,591 10,841,591 Stormwater utility 1,674,896 1,674,896 Total business -type activities 12,516,487 12,516,487 Total primary government $ (74,089,444) $ 12,516,487 $ 61,572,957 45,710,705 45,710,705 4,451,622 4,451,622 24,406,225 24,406,225 3,515,051 3,515,051 3,791,350 3,791,350 2,011,454 - 2,011,454 7,459,624 1,292,274 8,751,898 260,392 - 260,392 174,145 174,145 5,078,575 5,078,575 5,143,651 (5,143,651) - 102,002 794 3,851,37 98,151,417 27,913,350 6,665,110 36,578,460 194,415,343 97,285,080 291,700,423 $ 222,328,693 $ 105,950,190 $ 328,278,883 14 The accompanying notes are an integral part of the financial statements. 15 G D RA' /a/ 0 CITY OF FARMERS BRANCH, TEXAS EXHIBIT B-1 BALANCE SHEET GOVERNMENTAL FUNDS SEPTEMBER 30,2024 -- Debt General Grants Service Dallas Stars Multi-SpOrt ASSETS Cash, cash equivalents, and investments $ 40,658,657 $ 2,283,148 $ 1,725,900 $ 11,072,516 Receivables (net of allowance for uncollectibles) 7,872,727 466,922 131,927 - Lease receivable 2,591,778 - - PPP receivable 5,875,845 - Accrued interest and other 449,478 16,697 161,090 Land held for resale 3,766,320 - - Prepaid items 62,115 Due from other funds 1,328,735 Total assets $ 56,729,810 $ 2,750,070 $ 7,750,369 $ 11,233,606 LIABILITIES Accounts payable $ 6,395,323 $ - $ - $ 2,617,709 Retainage payable 41,357 885,495 Due to other funds - - - Deposits payable 27,807 200,000 Unearned revenue 198,520 2,585,777 2706,561 -- Total liabilities 6663007 2,585,777 2906.561 3,501204 DEFERRED INFLOWS OF RESOURCES Unavailable revenue 1,888,742 - 131,927 - Lease and PPP related 2,397,496 6,155144 - Total deferred inflows of resources 4,286,238 6,287,071 FUND BALANCES Nonspendable Land held for resale 3,766,320 - - - Prepaid items 62,115 - Restricted Construction of capital assets 7,730,402 Landfill closurelpostclosure - - Promotion of tourism " Purpose of grantors, trustees and donors 164,293 Economic development - Law enforcement Fire training operations Assigned Construction of capital assets Other capital assets 10,010,307 Economic development 5,293,670 Other purposes 4,436,450 - Unassigned 22,211,703 (1,443,263) Total fund balances 45,780,565 164,293 (1,443,263) 7,730,402 Total liabilities, deferred inflows of resources and fund balances 56.729,810 $ 2,750,070 $ 7,750369 $ 11,233,606 The accompanying notes are an integral part of the financial statements. 15 G 1,718,800 5,485,120 688 62,803 11,910,033 Nonmajor Total 7,877,113 Govemmental Govemmental Non -Bond Funds Funds $ 19,318,741 $ 26,358,949 $ 101,417,911 7,503 566,318 9,045,397 16,100,930 - 2,591,778 - 5,875,845 120,309 217,786 965,360 - 1,718,800 5,485,120 $ 19,446 553 $ 28,862,541 $ 688 62,803 1,328,735 $ 19,446,553 $ 28,862,541 $ 126,772,949 $ 1,057,868 $ 714.779 $ 10,785,679 333,115 282,690 1,542,657 1,328,735 1,328,735 170,906 125,605 524,318 1,776,231 7,267,089 3,338,120 2,451,809 21,448,478 7,503 2,028,172 8,552,640 7,503 10,580,812 1,718,800 5,485,120 688 62,803 11,910,033 19, 640,435 7,877,113 7,877,113 3,102,142 3,102,142 780,798 945,091 479,516 479,516 736,651 736,651 - 16,048 16,048 16,100,930 - 16,100,930 - 10,010,307 5,293,670 - 4,436,450 [211,057) 20,557,383 16,100.930 26,410,732 94,743,659 $ 19,446 553 $ 28,862,541 $ 126,772 949 16 DRAFT 4/10/20 E DRAFT /1 4/202, CITY OF FARMERS BRANCH TEXAS EXHIBIT B-2 RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE GOVERNMENT -WIDE STATEMENT OF NET POSITION SEPTEMBER 30, 2024 Total fund balances -governmental funds $ 94,743,659 Amounts reported for governmental activities in the statement of net position are different because: Capital, lease and subscription assets used in governmental activities are not financial resources and, therefore, are not reported in the funds (net of internal service fund capital assets of $7,100,394). 212,821,326 Equity investment in joint venture is not a current financial resource. Therefore, it is not reported in the governmental funds. 2,446,417 Deferred outflows of resources are not reported in the governmental funds: Deferred outflows on pension (net of internal service fund of $530,281) 18,174,894 Deferred outflows on OPEB (net of internal service fund of $32,835) 564,755 Deferred outflows on debt refunding 15,911 18,755,560 Other long-term assets are not available to pay for current period expenditures and, therefore, are reported as unavailable revenue in the funds. 2,028,172 Internal service funds are used by management to charge the cost of certain activities, such as fleet & facilities management and workers' compensation and health insurance self-insurance programs, to individual funds. The assets, deferred outflows of resources, liabilities, and deferred inflows of resources of the internal service funds are included in governmental activities in the statement of net position (less amount allocated to business -type activities of $413,947). 10,090,536 Long-term liabilities, including bonds payable, (net of internal service fund) are not due and payable in the current period and, therefore, are not reported in the funds. Bonds payable (63,570,000) Issuance premium (to be amortized over fife of debt) (2,181,051) Accrued interest payable (370,886) Compensated absences (net of internal service fund of $29,180) (5,262,184) Net pension liability (net of internal service fund of $954,720) (31,164,263) Total OPEB liability (net of internal service fund of $195,554) (3,419,202) Arbitrage liability (133,864) SBITA liability (361,112) Landfill liability (10,420,437) (116,882,999) Deferred inflows of resources are not reported in the governmental funds: Deferred inflows from OPEB (net of internal service fund of $8,822) (151,737) Deferred inflows on pension (net of internal service fund of $44,414) (1,522,241) (1.673.978) Net position of governmental activities $ 222,328,693 The accompanying notes are an integral part of the financial statements. 17 DRAFT 4/10/202.r-, TY OF FARMERS BRANCH, TEXAS EXHIBIT B-3 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 Debt General Grants Service Dallas Stars Multi -S rt REVENUES Property taxes $ 45,587,651 $ $ 4,450,880 $ Sales and use taxes 24,406,225 - HoteUmotel taxes - Franchise taxes 3,787,885 Tax increment financing - Licenses and permits 2,252,812 Charges for services 11,924,395 Fines and forfeitures 2,061,087 - Investment income 3,455,945 462,113 1,135,045 Intergovernmental - 6,495,638 - Miscellaneous 76,826 Total revenues 93,552,826 6,495,638_ 4,912993 1,135,045 EXPENDITURES Current General government 18,967,250 Public safety 36,291,073 39,876 Public works 10,673,908 85,514 Culture and recreation 13,880,029 2,499 - Debt service Principal retirement 389,947 - 4,145,000 Interest and fiscal agent charges 21,997 - 2,499,059 - Capital outlay 4,133.686 6,769,832 16,954,078 Total expenditures 84,357890 6,897,721 6,644059 16,954,078 Excess (Deficiency) of revenues over (under) expenditures 9,194,936 (402,083] (1,731,066) (15,819,033) OTHER FINANCING SOURCES (USES) Transfers in 5,593,900 Transfers out (8,107,463) Sale of general capital assets 224,984 Insurance recoveries 106,193 Issuance of SBITAs 245,460 Total other financing sources (uses) 1934 9261- Net change in fund balances 7,260,010 (402,083) (1,731,066) (15,819,033) Fundbalances- beginning 38,520,555 566,376 287,803 23,549,435 Fundbalances- ending $ 45,780,565 $ 164,293 $ (1,443,263) $ 7,730,402 The accompanying notes are an integral part of the financial statements. 18 19 DRAFT 4/1(1/202f Other Total Govemmental Govemmental Non -Bond Funds Funds $ $ $ 50,038,531 24,406,225 3,515,051 3,515,051 41,067 3,828,952 2,011,454 2,011,454 2,252,812 137,305 12,061,700 201,092 2,262,179 847,651 1,558,870 7,459,624 878,769 300,469 7,674,876 55X00 196,191 328,017 1,781420 7,961,499 115,839,421 132,656 1,339,022 20,438,928 542,800 36,873,749 162,139 10,921,561 2,323,569 16,206,097 - 4,534,947 - - 2,521,056 5839,053 3,726059 37.422708 5,971,709 8,093.589 128,919,046 :4,190 28$ (132,090) !13,079,625] 6,389,500 3,560,378 15,543,778 (2,685,215) (10,792,678) 35,408 260,392 - - 108,193 245.460 6,389.500 910,571 5,365145 2,199,211 778,481 (7,714,480) 13,901,719 25,632,251 102.458.139 16,100,930 $ 26,410,732 $ 94,743.659 19 DRAFT 4/1(1/202f DRAFT - /1x/20 CITY OF FARMERS BRANCH. ; EXASEXHIBIT B-4 RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 Net change in fund balances - total governmental funds Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of these assets is allocated over their estimated useful lives and reported as depreciation/amortization expense. This is the amount by which capital outlays exceeded depreciationlamortization expense in the current period. The net effect of the various miscellaneous transactions involving capital assets (i.e., sales, transfers and donations) is to decrease net position. The change in equity interest in joint venture increases net position. Revenues in the government -wide statement of activities that do not provide current financial resources are not reported as revenues in the funds. This is the decrease during the current year in unavailable revenue that is earned but not collected. The issuance of long-term debt (e.g. bonds) provides current financial resources to governmental funds, while the repayment of the principal of long -tern debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. This amount is the net effect of these differences in the treatment of long-term debt and related items. Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in government funds. Increase in compensated absences Increase in landfill liability Changes to net pension and total OPEB liabilities and related deferred outflows and inflows of resources do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Current year change in accrued interest payable does not require the use of current financial resources; but they are reported as expenses in the governmental activifies. Internal service funds are used by management to charge the costs of fleet management, workers' compensation, and health claims, to individual funds. The net revenue of certain activities of internal service funds is reported with governmental activities. (net of ($15,751) allocated to business -type activities). Change in net position of governmental activities The accompanying notes are an integral part of the financial statements. 20 $ (7,714,480) 28,908,833 (1,012) 515,687 247,007 4,360,878 (33,122) 07,2975 (720,419) 1,792,033 908,773 L383,950} $ 27,913,350 RA'T 4/1O/2OZ� CITY OF FARMERS BRANCH, TEXAS EXHIBIT B-5 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - GENERAL FUND BUDGET AND ACTUAL FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfers out Sale of general capital assets Insurance recoveries Issuance of SBITAs Budgeted Amounts 9,194,936 Actual Amounts Variance with (1,704,300) Original Final GAAP Basis Final Budget REVENUES (17,459,200) (8,107,463) 9,351,737 100,000 Property taxes $ 45,024,200 $ 45,434,700 $ 45,587,651 $ 152,951 Sales and use taxes 23,080,000 23,598,700 24,406,225 807,525 Franchise taxes 3,779,000 3,770,700 3,787,885 17,185 Licenses and permits 1,899,700 2,134,200 2,252,812 118,612 Charges for services 10,930,600 11,669,200 11,924,395 255,195 Fines and forfeitures 1,115,000 1,919,900 2,061,087 141,187 Investment income 1,227,000 2,761,200 3,455,945 694,745 Miscellaneous 62,000 69,000 76,826 7,826 Total revenues 87,117,500 91,357,600 93,552,826 2,195,226 EXPENDITURES General government General government 8,142,800 10,573,807 4,728,355 5,645,452 City administration 1,314,300 1,358,223 1,318,313 39,910 Communications 746,400 754,316 985,833 (231,517) Economic development 1,348,700 3,395,656 2,317,709 1,077,947 Human resources 1,278,400 1,303,244 1,224,095 79,149 Finance 3,139,100 3,078,084 2,899,719 178,365 Innovation & technology 5,013,900 5,247,777 3,794,219 1,453,558 Community services 2,177,500 1,889,897 1,699,007 190,890 Public safety Police 20,514,200 21,281,926 19,511,176 1,770,750 Fire 17,032,700 20,381,952 16,779,897 3,602,055 Principal retirement 109,900 636,015 389,947 246,068 Public works Interest and fiscal agent charges - - 21,997 (21,997) Public works 6,035,200 6,214,959 5,292,030 922,929 Sustainability & public health 5,932,100 6,255,738 5,381,878 873,860 Culture and recreation Parks and recreation 12,790,100 14,235,302 11,961,675 2,273,627 Library 2,126,400 2,326,104 1,918,354 407,750 Capital outlay = 4,133,686 (4,133,686) Total expenditures 87,701,700 98,933,000 84,357,890 14,575,110 Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfers out Sale of general capital assets Insurance recoveries Issuance of SBITAs Total other financing sources (uses) (7,575,400) 9,194,936 16.770,336 _(584,200) (1,704,300) 9,185,300 15,120,300 5,593,900 (9,526,400) (10,405,400) (17,459,200) (8,107,463) 9,351,737 100,000 225,000 224,984 (16) - 99,500 108,193 8,693 - 245,460 245,460 Total other financing sources (uses) (1,120,100) :2,014,400:_ _ ;1,934,926; 79,474 Net change in fund balance (1,704,300) (9,589,800) 7,260,010 16,849,810 Fund balances- beginning 38,520,555 38,520,555 38,520,555 Fund balances - ending $ 36,816,255 $ 28,930.755 $ 45,780,565 $ 16.849,810 _ The accompanying notes are an integral part of the financial statements. 21 DRAFT /1 01202,r.". CITY OF FARMERS BRANCH_ TEXAS EXHIBIT B-6 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - GRANTS FUND BUDGET AND ACTUAL FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 The accompanying notes are an integral part of the financial statements. 22 Budgeted Amounts Actual Amounts Variance with Original Final GAAP Basis Final Budget REVENUES Intergovernmental $ 8,449,792 $ 9,024,387 $ 6,495,638 $ (2,528,749) Total revenues 8,449,792 9,024,387 6,495,638 (2,528,749) EXPENDITURES Public safety 310,000 29,955 39,876 (9,921) Public works 96,600 104,400 85,514 18,886 Culture and recreation - 2,500 2,499 1 Capital outlay _ _ 6,769,632 (6,769,832 Total expenditures 406,600 _ 136 855 X897,721 (6,760,866; Excess (deficiency) of revenues over (under) expenditures 8,043,192 8,887,532 (402,083) (9,289,615) OTHER FINANCING SOURCES (USES) Transfers in 72,800 5,560 (5,560) Transfers out 8,115 992 8,893,092 8,893,092 Total other financing sources (uses) (8,043 192) (8,887,532) 8,887 532 Net change in fund balances - - (402,083) (402,083) Fundbalances- beginning 566,376 566,376 566,376 Fundbalances-ending $ 566,376 $ 566,376 $ 164,293 $ (402,083). The accompanying notes are an integral part of the financial statements. 22 CITY OF FARMERS BRANCH. TEXAS STATEMENT OF NET POSITION PROPRIETARY FUNDS SEPTEMBER 30, 2024 RAT 4 /10/2 0 2F EXHIBIT C-1 Business -Type Governmental Activities Activties 23 Nonmalor Fund Water and Sewer Stormwater Utility Total Internal Service Funds ASSETS Current assets Cash, cash equivalents, and investments $ 19,510,901 $ 1,768,983 $ 21,279,884 $ 5,410,218 Receivables (net of allowance for uncollectibles) 4,714,761 130,645 4,845,406 43,339 Accrued interest and other 171,571 20,300 191,871 - Inventories - - - 51,973 Prepaid items 11,760 11,760 4,813 Deposits - 35,000 Total current assets 24,408,993 1,919,928 26,328,921 5,545,343 Noncurrent assets Equity interest in joint venture 4,957,336 - 4,957,336 - Capital and lease assets Nondepreciable 9,247,608 4,361,624 13,609,232 8,170 Depreciable, net of accumulated depreciation/amortization 60.522,183 4,966,365 65,488,548 7,092,224 Total noncurrent assets 74,727,127 9,327,989 84,055,116 7,100,394 Total assets 99,136,120 11,247,917 110,384,037 12,645,737 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows from pension 934,865 - 934,865 530,281 Deferred outflows from OPEB 59,103 59,103 32,835 Total deferred outflows of resources 993,968 993,968 563,116 LIABILITIES Current Liabilities Accounts payable and other accrued liabilities 2,127,455 516,646 2,644,101 638,836 Compensated absences 24,403 - 24,403 29,180 Total OPEB liability 43,944 43,944 24,414 Claims payable - - 722,831 Retainage payable 260,523 118,320 378,843 - Deposits payable 467,307 467,307 _ Total current liabilities 2923,632 634,966 3,558.598 1,415,261 Noncurrent liabilities Compensated absences 200,367 - 200,367 Claims payable - - 110,013 Net pension liability 1,675,058 1,675,058 954,720 Total OPEB liability 313,560 313,560 171,140 Total noncurrent liabilities 2,188,985 2,188,985 1,235,873 Total liabilities 5,112,617 634,966 5,747,583 2,651134 DEFERRED INFLOWS OF RESOURCES Deferred inflows from pension 78,300 78,300 44,414 Deferred inflows from OPEB 15.879 151,879 _ 8,822 Total deferred inflows of resources 94,179 94,179 53,236 NET POSITION Net investment in capital assets 68,067,327 8,698,562 76,765,889 7,100,394 Unrestricted 26,855,965 1,914,389 28,770,354 3,404,089 Total net position $ 94 923 292 10,612 951 $ 105,536,243 $ 10,504,483 Adjustment to report the cumulative internal balance for the net effect of the activity between the internal service funds and the enterprise funds over time 413,947 Net position of business -type activities $ 105,950,190 The accompanying notes are an integral part of the financial statements. 23 DRAFT / 012)02E. CITY OF FARMERS BRANCH, TEXAS STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION PROPRIETARY FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 Business -Type Activities Nonmajor Fund Operating Revenues Charges for services Contributions and miscellaneous Total operating revenues Operating Expenses Personal services Materials and supplies Maintenance and utilities Purchase of water Sewage treatment Insurance claims and expenses Depreciation Total operating expenses Operating income (loss) Nonoperating Revenues Investment income Total nonoperating revenues Income before contributions and transfers Capital contributions Transfers in Transfers out Change in net position Net position - beginning Net position - ending EXHIBIT C-2 Governmental Activities Water and Sewer Stonmwater Utility Total Internal Service Funds $ 30,752,465 $ 1,782,612 $ 32,535,077 $ 5,431,142 - - - 5,134,596 30,752,465 1,782 612 32,535,077 10,565,738 2,527,873 - 2,527,873 894,882 288,771 - 288,771 2,454,441 2,092,424 84,248 2,176,672 2,346,897 7,060,234 - 7,060,234 - 5,526,428 5,526,428 - - - - 5,409,837 3,284,593 23,468 3,308,061 236,182 20,780,323 107,716 20,888,039 11,342,239 _ 9,972,142 1,674,896 11,647,038 (776,501) 1,149 241 143,033 1,292,274 1,149,241 143,033 1,292,274 11,121,383 1,817,929 12,939,312 (776,501) 869,449 - 869,449 - - - 376,800 (5,035,100; 492,800) (5,127,900] - 6,955,732 1,725,129 8,680,861 (399,701) 87,967,560 8,887,822 96,855,382 10,904,184 $ 94,923 292 $ 10,612,951 $ 105,536,243 $ 10,504,483 Reconciliation to government -wide statement of net position: Change in net position Adjustment to reflect the consolidation of internal service fund activities related to the enterprise funds Change in net position of business -type activities The accompanying notes are an integral part of the financial statements. 24 8,680,861 (15,751..-._ $ 8,665,110 RAFT 4110120?,r,.- CITY OF FARMERS BRANCH TEXAS EXHIBIT C-3 STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Receipts from interfund services provided Payments to suppliers Payments to employees Payments for loss claims Net cash provided by (used for) operating activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers to other funds Transfers from other funds Net cash provided by (used for) noncapital financing activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets (5,556,453) (2,186,560) (7,743,013' (2,500) Net cash used for capital assets and related financing activities 5,556,453) (2,186,560) (7,743,013) _ (2,500) CASH FLOWS FROM INVESTING ACTIVITIES Purchases of investments Sale of investments Investment income Net cash provided by investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equialents - beginning of year Cash and cash equivalents -end of year Investments Cash, cash equivalents, and investments - end of year NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Contributed capital assets Loss on the joint venture Purchase of capital assets on accounts and retainage payable (944,829) Business -Type (944,829) Governmental - Activities 636,712 Activities Water and Stormwater 1,170,181 Internal Service Sewer Utility Total Funds $ 30,712,390 $ 1,705,351 $ 32,417,741 $ - - - - 10,571,248 (15,112,551) - (15,112,551) (4,637,024) (2,596,110) - (2,596,110) (961,731) - - - 15,421,589: 13, 003, 729 1,705,351 14,709,080 449,096'• $ ___19.51 0 $ 1,768,983 $ 21,279 884 $ (5,035,100) (92,800) (5,127,900) - - - (69,273) 376,800 (5,035,1� 192.8001 5,127,9001 376,800 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets (5,556,453) (2,186,560) (7,743,013' (2,500) Net cash used for capital assets and related financing activities 5,556,453) (2,186,560) (7,743,013) _ (2,500) CASH FLOWS FROM INVESTING ACTIVITIES Purchases of investments Sale of investments Investment income Net cash provided by investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equialents - beginning of year Cash and cash equivalents -end of year Investments Cash, cash equivalents, and investments - end of year NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Contributed capital assets Loss on the joint venture Purchase of capital assets on accounts and retainage payable (944,829) - (944,829) - - 636,712 636,712 1,170,181 152,563 1,322,744 225,352 789,275 1,014,627 2,637,528 215,266 2,852,794 (74,796) 509,492 70,063 579,555 5,485,014 $ 3,147,020 $ 285,329 $ 3,432,349 $ 5,410,218 16,363,881 1,483,654 17,847,535 - $ ___19.51 0 $ 1,768,983 $ 21,279 884 $ 5,410 218 $ 869,449 $ - 869,449 $ - (69,273) - (69,273) - 1,702,464 629,427 2,331,891 $ - The accompanying notes are an integral part of the financial statements. (continued) 25 RAFT 411012O2E CITY OF FARMERS BRANCH TEXAS EXHIBIT C-3 STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 Reconciliation of operating income (loss) to net cash provided by (used for) operating activities Operating Income (Loss) Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities: Depreciation (Increase)/Decrease in Receivables Inventories Prepaid items Deferred outflows of resources - pension Deferred outflows of resources - OPEB Increase/(Decrease) in Accounts payable and accrued liabilities Claims payable Deposits payable Net Pension liability Total OPEB liability Deferred inflows of resources - pension Deferred inflows of resources - OPEB Compensated absences Net Cash Provided by (Used for) Operating Activities The accompanying notes are an integral part of the financial statements. Water and Sewer 9,972,142 3,284,593 54,120 (562) 481,728 (1,333) Business -Type Governmental Activities Activities Stormwater Internal Service Utility Total Funds 1,674,896 11,647,038 (776,501) 23,468 3,308,061 236,182 (3,823) 50,297 5,510 - (23,584) (562) 187 481,728 273,248 (1,333) (740) (124,004) 10,810 (113,194) 148,850 33,428 (94,195) (94,195) - (632,209) (632,209) (358,605) (8,158) (8,158) (4,532) 69,501 69,501 39,423 (13,290) (13,290) (7,383) 15,396 15,396 t 14,5791 $ 13,003,729 $ 1,705,351 $ 14,709,080 $ 1449,096; 26 (concluded) DRAFT/�Q/,B20 %WCITY OF FARMERS BRANCH, TEXAS NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the City of Farmers Branch, Texas (the "City") have been prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP") which are applicable to state and local governments. The Governmental Accounting Standards Board ("GASB") is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The significant accounting and reporting policies and practices used by the City are described below. A. Reporting Entity The City is a municipal corporation governed by an elected mayor and a five -member council. The City was incorporated in 1946 under the Constitution of the State of Texas (Home Rule Amendment). As required by GAAP, these financial statements present the City and its component units, entities for which the City is considered financially accountable. A component unit is included in the City's reporting entity if it is both fiscally dependent on the City (the primary government) and there is a potential for the component unit to provide specific financial benefits to or impose specific financial burdens on the primary government. The primary government is required to consider other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete. Because of the closeness of their relationship with the primary government (the City), some component units are blended as though they are part of the primary government. The City's blended component units and joint ventures, which all have a September 30 year-end, are as follows: Blended Component Units The City's reporting entity, as set forth in Section 2100 of GASB's Codification of Governmental Accounting and Financial Reporting Standards, include whether: • The organization is legally separate (can sue and be sued in their own name); • The City appoints a voting majority of the organization's board; • The City is able to impose its will on the organization; • The organization has the potential to impose a financial benefit/burden on the City; or • There is a fiscal dependency by the organization on the City Tax Increment Finance and Tax Increment Reinvestment Zones 'TIFs/TIRZ': Tax Increment Finance District Number Two ("TIF No. 2"), Tax Increment Reinvestment Zone Number Three ("TIRZ No. 3"), and Tax Increment Finance District Number Four ("TIF No. 4/1-35 Zone") were created pursuant to the Texas Tax Increment Financing Act, Tax Code Chapter 311, as amended. The purpose of the TIF No. 2 is to promote development in the Old Farmers Branch area. The purpose of the TIRZ No. 3 is to dedicate certain tax increment revenues to the Mercer Crossing Development and apply these revenues to reduce the public improvement district assessments. Management of the primary government has operational responsibility for both of these tax increment financing districts. The purpose of TIF No. 411-35 Zone is to dedicate certain tax increment revenues to the Interstate Highway 35W and apply these revenues for improvements to the commercial corridor on the east and west of the Interstate Highway 35W and Valwood Park. Management of the primary government has operational responsibility for these tax increment financing districts. TIF No. 2 and TIF No. 4 are reported as capital projects funds and are included as blended component units because they provide a financing mechanism to build streets and other infrastructure. The TIRZ No. 3 is reported as a special revenue fund because the revenues are restricted to reduce the public improvement district assessments, and the fund is included as a blended component unit. Public Imurovement Districts 1PIDs: The City has one Public Improvement District. Farmers Branch's PID program allows for groups of property owners to request special property assessments for the provisions of services above typical City levels. The PID may select its own budget and categories based on its goals and needs, subject to Chapter 372 of the Texas Local Government Code. This may consist of eligible supplemental activities such as marketing the area, providing additional security, landscaping and lighting, street cleaning, and cultural and recreational improvements. The City's sole PID is operated by a designated management organization. Separate financial statements for the sole PID are not prepared. Mercer Crossing PID - created in February 2017 to support development along Valley View lane in Farmers Branch. On June 20, 2017, the Public Finance Authority of Wisconsin issued tax-exempt revenue bonds for the Mercer Crossing PID. Assessments on property within the district are pledged as reimbursement for this debt, which is not an obligation of the City. The PID's governing body is substantially the same as City's and the operations of the PID benefit the City almost exclusively. 27 CITY OF FARMERS BRANCH, TEXAS DRAFT / NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 Farmers Branch Local Government Corporation Q /IB2.0 9 11 The Farmers Branch Local Government Corporation ("FBLGC") was organized on behalf of the City to accomplish any governmental purpose of the City and to promote the common good and general welfare of the City. This includes the furtherance of the promotion, development, encouragement, and maintenance of employment, commerce, economic development and public facility development in the City, and currently to develop oil, natural gas and other mineral interests on behalf of the City. Management of the primary government has operational responsibility for the FBLGC. The FBLGC is authorized to issue bonds, notes or other obligations after approval by the City Council. The FBLGC has been included as a special revenue fund because it is organized as a not-for-profit corporation in which the City of Farmers Branch is the sole corporate member. The FBLGC is fiscally dependent (the City must approve any issuance of debt) and the purpose of the corporation is to provide a benefit to the City. Separate financial statements for the blended component units are not available. Joint Ventures The North Texas Emergency Communications Center, Inc. (NTECC) is a joint venture between the Town of Addison, City of Carrollton, City of Coppell, and City of Farmers Branch (the "Cities") formed to establish and operate a joint public safety dispatch center. The affairs of the NTECC are managed by a four -person board of directors representing each of the four participating Cities. The Cities are responsible for funding capital and operating costs of the NTECC in the proportions stated in the inter -local agreement. The City financed its portion of construction funds through the issuance and sale of certificates of obligation. The City of Farmers Branch's equity interest in the NTECC is $2,446,417 at September 30, 2024 and is reported as equity interest in joint venture in the governmental activities on the government -wide Statement of Net Position. Audited financial statements for the NTECC can be obtained from the Finance Department, Attn: Director of Finance, at 13000 William Dodson Parkway, Farmers Branch, Texas 75234, or call (972) 247-3131. Additionally, the Cities have also entered into inter -local agreements to jointly procure a public safety radio system and a fire training facility. These agreements did not include the formation of a separate legal joint venture entity. The City has financed its portion of construction funds through the issuance and sale of general obligation bonds. The Cities are responsible for funding a portion of the radio system and fire training facility in the proportions stated in the inter -local agreements. The City of Farmers Branch's portion of the radio system is capitalized as infrastructure and equipment and the portion of the fire training facility is capitalized as buildings in the governmental activities on the govemment-wide Statement of Net Position. The North Dallas County Water Supply Corporation ("NDCWSC") is a joint venture between the City and the Town of Addison (the "Town") to design, construct, operate, and maintain a joint sanitary sewer interceptor and conventional sewer lines. The NDCWSC, a public instrumentality and nonprofit water supply corporation, was created for that purpose. Upon dissolution of the NDCWSC, the City and Town will share the net position in the proportions stated in an inter -local agreement. The affairs of the NDCWSC are managed by a six -person board of directors appointed by the governing bodies of the City and the Town. The City and the Town are each obligated to fund construction of the sanitary sewer interceptor in the proportions stated in the inter -local agreement. The City financed its portion of construction funds through the issuance and sale of assessment revenue bonds and a transfer from previously issued sewer bonds and none of the bonds are still outstanding. The City's net investment and its share of the operating results of the NDCWSC are reported in the City's water and sewer fund. The City's equity interest in the NDCWSC was $4,957,336 at September 30, 2024. Complete financial statements for the NDCWSC can be obtained from the Finance Department, Attn: Director of Finance, at 13000 William Dodson Parkway, Farmers Branch, Texas 75234, or call (972) 247-3131. B. Basis of Presentation While separate government -wide financial statements (based on the City as a whole) and fund financial statements are presented, they are interrelated. The governmental activities column incorporates data from governmental funds and internal service funds, while business -type activities incorporate data from the City's enterprise funds. The fund financial statements provide information about the City's funds, including its blended component units. The emphasis of fund financial statements is on major governmental and enterprise funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. The City reports the following major governmental funds: The General Fund is the primary operating fund of the City. It accounts for all financial resources of the City except those required to be accounted for in another fund. The Grants Fund is used to account for monies received from other governmental agencies that have restricted legal requirements. The Debt Service Fund is used to account for the accumulation of financial resources for the payment of principal, interest, and related costs on general long-term debt paid primarily from taxes levied by the City. 28 CITY OF FARMERS BRANCH, TEXAS NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 DRAFT 4/ Q/202,r.". The Dallas Stars Multi -Sport Fund is used to account for the acquisition and construction of the City's Dallas Stars Multi -Sport Complex. The Non -Bond Capital Projects Fund is used to account for the acquisition and construction of major capital facilities. The City reports the following major proprietary fund: The Water and Sewer Fund is used to account for water and sewer service operations that are financed and operated in a manner similar to private business enterprises. The intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges, or where the governing body has decided the periodic determination of revenues earned, expenses incurred, or net income is appropriate for capital maintenance, public policy, management control, accountability or other purposes. The City reports the following internal service funds: The Internal Service Funds are used to account for facilities and fleet management services and the City's workers' compensation and health insurance self-insurance programs for the departments of the City on a cost reimbursement basis. 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". While these balances are reported in fund financial statements, certain eliminations are made in the preparation of the government -wide financial statements. Balances between the funds included in governmental activities (i.e., the governmental and internal service funds) are eliminated so that only the net amount is included in the governmental activities column. Similarly, balances between the funds included in business -type activities (i.e., the enterprise funds) are eliminated so that only the net amount is included as internal balances in the business -type activities column. Further, certain activity occurs during the year involving transfers of resources between funds. In fund financial statements, these amounts are reported at gross amounts as transfers in/out. While reported in fund financial statements, certain eliminations are made in the preparation of the government -wide financial statements. Transfers between the funds included in governmental activities are eliminated so that only the net amount is included as transfers in the governmental activities' column. Similarly, balances between the funds included in business -type activities are eliminated so that only the net amount is included as internal balances in the business -type activities column. Exceptions to this general rule are payments -in -lieu -of -taxes (PILOT) where the amounts are reasonably equivalent in value to the interfund services provided and other charges between the City's water and sewer functions and various other functions of the City. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. C. Measurement Focus and Basis of Accounting The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus refers to the type of resources being measured such as current financial resources or economic resources. The basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurement made, regardless of the measurement focus applied. 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 time of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. 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. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. For this purpose, the government generally considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures are recorded when a liability is incurred, as under accrual accounting. Debt service expenditures, including those on lease liabilities, and expenditures related to pension, other post -employment benefits, compensated absences and claims and judgments are recorded only when payment is due. General capital asset acquisitions, including entering into contracts giving the City the right to use leased assets, are reported as expenditures in governmental funds. The issuance of long-term debt and financing through leases is reported as an other financing source. Property, franchise, sales and hotel occupancy taxes, and investment income (including unrealized gains and losses) are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. The portion of special assessments receivable due within the current fiscal period is considered susceptible to accrual as revenue of the current period. Expenditure -driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other eligibility requirements have been met, and the amount is received during the period or within the availability period for this revenue source (within 1 year of year-end). All other revenue items are considered measurable and available only when the government receives cash. For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Texas Municipal Retirement System (TMRS) and additions toldeductions from TMRS's Fiduciary Net Position have been determined on the same basis as they are reported by TMRS. For this purpose, plan contributions are recognized in the period that compensation is reported for the employee, which is when contributions are legally due. Benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. 29 CITY OF FARMERS BRANCH, TEXAS DRAFr NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 Q 1.209%" For purposes of measuring the total OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB for the OPEB Retiree Health Plan, OPEB expenses have been determined on the same basis as they are reported by the plan. For this purpose, benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. D. Budgetary Information J Budgetary Basis ofAccounting Annual budgets are adopted on a basis consistent with generally accepted accounting principles for the general fund, grants fund, special revenue funds, and debt service fund. The capital projects funds are appropriated on a project -length basis and often span a period of more than one year. The Farmers Branch Local Government Corporation does not have a legally adopted budget, as the activity during the year is at the discretion of the Management of the primary government. The appropriated budget is prepared by fund, department and function. The City Manager may transfer unencumbered appropriations within a department and between departments within the same fund. City Council approval is necessary for transfers of unencumbered appropriations between funds. The legal level of budgetary control (i.e., the level at which expenditures may not legally exceed appropriations) is the department level. Special revenue funds are budgeted at the function level. Appropriations, except remaining project appropriations and encumbrances, lapse at the end of the fiscal year. E. Assets, Liabilities, Deferred Outflowsllnflows of Resources, and Net PositionlFund Balance J Cash and Cash Eouivalents Cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition. 21 Investments Investments are recorded at fair value (based on quoted market prices), except for investments with maturity of one year or less from date of purchase and investments in TexPool, which are stated at amortized cost. 1 Receivables All trade and property tax receivables are shown net of an allowance for uncollectible accounts. Trade accounts receivable in excess of 90 days comprise the trade accounts receivable allowance for uncollectible accounts. 1 Inventories, Land Held For Resale and Prepaid Items Inventories are stated at cost for the internal service funds and at the lower of cost or market value (assessed taxable value) for the inventory of land held for resale in the general fund and nonmajor governmental funds. Inventories are recorded as assets when purchased and charged to operations when used. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government -wide and fund financial statements. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased. 1 Capital, Lease and Subscription Assets Capital, lease and subscription assets include land, buildings, equipment, improvements, infrastructure (e.g., roads, bridges, sidewalks, and similar items), intangible assets (e.g., software, websites), and lease and subscription assets. Capital assets purchased, acquired or developed, are carried at historical cost or estimated historical cost if historical cost is not available. Donated capital assets, donated works of art and similar items, and capital assets received in a service concession agreement are recorded at acquisition value. Additions, improvements, and other capital outlays that significantly extend the useful life of an asset are capitalized. The City defines capital, lease, and subscription assets as having a useful life longer than one year and an initial, individual cost that exceeds the capitalization threshold for their class. The capitalization threshold for the infrastructure class is $100,000. The capitalization threshold for lease and subscription asset classes is $25,000. The capitalization threshold for all other asset classes is $5,000. Other costs incurred for repairs and maintenance are expensed. Insurance recoveries of $108,193 were received for the year ended September 30, 2024. They are included as an "other financing source" in the governmental funds. 30 CITY OF FARMERS BRANCH, TEXAS DRAFT NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 /1 QZB2 0 2 r,.-, Land and construction in progress are not depreciated. The other property, plant, equipment, and infrastructure of the primary government are depreciated/amortized on the straight-line basis over the following estimated useful lives or lease term, whichever is shorter. Canital asset classes Lives Buildings 30-50 years Equipment 5-30 years Improvements 20 years Intangible assets-software/websites 5 years Infrastructure 15-63 years Lease Receivable The City is a lessor for noncancellable leases of tower spaces. The City recognizes a lease receivable and a deferred inflow of resources. At the commencement of a lease, the City initially measurers the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term. The City monitors changes in circumstances that would require a remeasurement of its leases and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable. 71 Lease Liability The City is a lessee for a noncancellable lease of a building and recognizes a related lease liability and an intangible right -to -use lease asset (lease asset) in the financial statements. The City recognizes lease liabilities with an initial, individual value of $25,000 or more. At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on a straight-line basis over the shorter of the lease term or its useful life. The City monitors changes in circumstances that would require a remeasurement of its leases and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability. 8) Deferred Outflowslinflows of Resources In addition to assets, the statement of net position and/or balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to future periods and so will not be recognized as outflows of resources (expense/expenditure) until then. The City has three items that qualify for reporting in this category. The deferred outflows of resources are reported in the government -wide and proprietary funds statements of net position. The first item is the deferred outflows of resources from pension. For purposes of measuring the net pension liability, deferred outflows of resources related to pension have been determined on the same basis as they are reported by TMRS. The second item is the deferred outflows of resources from OPEB. The third item is the deferred charge on refunding reported in the government -wide statement of net position. A deferred charge on refunded debt results from the difference in the carrying value of the refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. In addition to liabilities, the statement of net position and/or balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represent an acquisition of net assets that applies to future periods and so will not be recognized as an inflow of resources (revenue) until that time. The City reports deferred inflows of resources from pensions, OPEB, leases, PPPs and deferred gain on refunding. Finally, the City has one item that arises only under a modified accrual basis of accounting that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. The governmental funds report unavailable revenues from the following sources: 31 CITY OF FARMERS BRANCH, TEXAS NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 Property taxes Ambulance Franchise taxes - electric Charges for services - culture and recreation Special assessments Total J, Unearned Revenue DRAFT / Q1.202,r_-, General Debt Service Fund Fund Non -Bond Fund Total $ 1,033,300 $ 131,927 $ - $ 1,165,227 214,212 214,212 641,045 641,045 185 185 7,503 7,503 $ 1,888,742 $ 131,927 $ 7,503 $ 2,028,172 The General, Non -Bond and Grant Funds report unearned revenue in connection with grant funding that has been received, but not yet earned. These funds will be recognized as revenue as the City completes related projects for which these funds were provided. At September 30, 2024, the amount reported for unearned revenue totaled $4,560,528, as these proceeds received were not utilized by the end of the current fiscal year. Additionally, the Debt Service Fund reports unearned revenue in connection with advance rental installments that have been received. However, the Deb Service Fund will only recognize it as revenue upon the tenant moving into the facility. The amount reported in unearned revenue for this activity totaled $2,706,561 as the tenant had not moved into the premises before fiscal year end. 101 Net Position Flow Assumptions For government -wide reporting as well as in proprietary funds, the difference between assets and deferred outflows of resources less liabilities and deferred inflows of resources is called net position. Net position is comprised of three components: net investment in capital assets, restricted, and unrestricted. Net investment in capital assets consists of capital, lease and subscription assets, net of accumulated depreciation/amortization and reduced by outstanding balances of bonds, notes, and other debt that are attributable to the acquisition, construction, or improvement of those assets. Deferred outflows of resources and deferred inflows of resources that are attributable to the acquisition, construction, or improvement of those assets or related debt are included in this component of net position. Restricted net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets. Assets are reported as restricted when constraints are placed on asset use either by external parties or by law through constitutional provision or enabling legislation. Unrestricted net position is the net amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that does not meet the definition of the two preceding categories. Sometimes the City will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position in the government -wide and proprietary fund financial statements, a flow of assumption must be made about the order in which the resources are considered to be applied. It is the City's policy to consider restricted net position to have been depleted before unrestricted net position is applied. 11) Fund Balance Policies and Flow Assumptions Governmental fund balances classified as nonspendable are balances that cannot be spent because they are either not in a spendable form or are legally and/or contractually required to stay intact. Fund balances classified as restricted are balances constrained to specific purposes by their providers (such as grantors, bondholders, and higher levels of government) through constitutional provisions or by enabling legislation. Fund balances classified as committed can only be used for specific purposes pursuant to constraints imposed by the City Council through an ordinance or resolution, which are considered equally restrictive for the purpose of committing fund balance. The City Council must take the same level of action to remove or change the constraint. Assigned fund balances are constrained by intent to use for a specific purpose but are neither restricted nor committed. Assignments are made by City management based on Council direction. As previously mentioned, sometimes the City will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). When fund balance resources are available for a specific purpose in more than one classification, it is the City's policy to use the most restrictive funds first in the following order: restricted, committed, assigned, and unassigned as they are needed. In the general fund, the City strives to maintain a target range of unassigned fund balance to be used for unanticipated emergencies with a low end of 15% and a high end of 20% of the actual GAAP basis expenditures and other financing sources and uses. As of September 30, 2024, the Debt Service Fund, a major governmental fund, and the Branch Connection Bond Fund, a nonmajor governmental fund, had deficit fund balances of $1,443,263 and $211,057, respectively. 32 CITY OF FARMERS BRANCH, TEXAS DRAFT 4/Q1.202.r: NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 12) Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and deferred inflows and outflows of resources and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. F. Revenues and ExpendituresfExpenses 1) Program Revenues Amounts reported as program revenues include 1) charges to customers 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 revenues. Likewise, general revenues include all taxes. Property Taxes The City's property taxes are levied each October 1 on the assessed value listed as of the prior January 1 for all real and business personal property located in the City. 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. 1 Compensated Absences The City's employees earn vacation leave (up to a maximum of 192 hours per year for 40 hours per week employees and 288 hours per year for 56 hours per week employees) based on years employed. Upon retirement or termination, payment of accumulated vacation may not exceed that which can be accumulated within two years for employees hired prior to January 1, 2011, and within one and a half years for employees hired on or after January 1, 2011. Unused sick leave, based on days employed, may be accumulated up to certain limits. Upon retirement or termination, employees hired before October 1, 1992 will be paid a maximum of 720 hours of sick pay for 40 hours per week employees or 1,080 hours for 56 hours per week employees. Upon retirement or termination, employees hired between October 1, 1992 and December 31, 2010 with five years or less of service will be paid a maximum of 120 hours of sick pay and with more than five years of service will be paid a maximum of 240 hours of sick pay for 40 hours per week employees or with five years or less of service will be paid a maximum of 180 hours of sick pay and with more than five years of service will be paid a maximum of 360 hours of sick pay for 56 hours per week employees. Employees hired on or after January 1, 2011 receive no payout for unused sick leave upon retirement or termination. 4) Proprietary Funds Operating and Nonoceratina Revenues and Expenses 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 water and sewer fund and the government's internal service funds are charges to customers for sales and services. Operating expenses for water and sewer funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. 33 CITY OF FARMERS BRANCH, TEXAS NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 2. RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS 01202,r.". EXHIBIT D-1 A. Explanation of Certain Differences Between the Governmental Fund Balance Sheet and the Government -Wide Statement of Net Position The governmental fund balance sheet includes reconciliation between fund balance — total governmental funds and net position — governmental activities as reported in the government -wide statement of net position. One element of that reconciliation explains that "capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds." The details of this $212,821,326 difference are as follows: Land and rights of way Construction in progress Improvements Less: Accumulated depreciation -improvements Buildings and lease buildings Less: Accumulated depreciationiamortization-buildings and lease buildings Equipment Less: Accumulated depreciation -equipment Infrastructure Less: Accumulated depreciation -infrastructure SBITAs Less: Accumulated amortization-SBITAs Intangible assets Less: Accumulated depreciation -intangible assets Net adjustment to increase fund balance - total government funds to arrive at net position - $ 39,403,292 44,912,243 21,079,444 (11,240,282) 70,668,447 (26,296,141) 42,567,313 (32,732,058) 154,707,114 (91,178,215) 908,151 (462,716) 3,309,425 2,824,6911 $ 212,821,326 Another element of that reconciliation explains that "internal service funds are used by management to charge the costs of certain activities, such as fleet management and workers' compensation and medical self-insurance programs, to individual funds. The assets and liabilities of the internal service funds are included in the governmental activities in the statement of net position." The details of this $10,090,536 (net of internal service fund activity) difference are as follows: Net position of the internal service funds $ 10,504,483 Less: Internal receivable representing charges to the business -type activities - current year (413,947) Net adjustment to increase fund balance - total government funds to arrive at net position - governmental activities $ 10,090,536 34 CITY OF FARMERS BRANCH, TEXAS NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,1024 DRAFT 41101202%r.". EXHIBIT D-1 B. Explanation of Certain Differences Between the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances and the Government -Wide Statement of Activities The governmental fund statement of revenues, expenditures, and changes in fund balances includes reconciliation between net changes in fund balances — total governmental funds and changes in net poskion of governmental activities as reported in the government -wide statement of activities. One element of that reconciliation explains that governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of these assets is allocated over their useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation expense in the current period." The details of this $28,908,833 difference are as follows: Capital outlay 37,422,708 Depreciation and amortization expense $ x(8,513 875_,'• Net adjustment to increase net changes in fund balances - total governmental funds to arrive at changes in net position of governmental activities $ 28,908,833 Another element of that reconciliation states that "the issuance of long-term debt (e.g., bonds) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. In addition, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statements of activities. This amount is the net effect of these differences in the treatment of long-term debt and related items." The details of this $4,360,878 difference are as follows: Debt issued: SBITAs Total proceeds Debt repayments To bondholders/debtors To lessors/vendors Total debt repayments Amortization of long-term debt Deferred offering amounts Arbitrage expense Bond premiums Total amortization of long-term debt Net adjustment to increase net changes in fund balance - total governmental funds to arrive at changes in net position of governmental activities $ 245,460] (245,460:.- 4,145,000 389,947 $ 4,534,947 $ 2,429 (133,864) 202,826 $ 71,391 $ 4,360,878 Another element of that reconciliation states that "changes to net pension and OPEB liabilities and related deferred outflows and inflows of resources do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. The details of this $1,792,033 difference are as follows: OPEB income (217,687) Pension income X1,574,346} Net adjustment to decrease total governmental funds to arrive at changes in net position of governmental activities $ +1,792,033: 35 CITY OF FARMERS BRANCH, TEXAS NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 T / 4 / 2 0 2 EXHIBIT D-1 Another element of that reconciliation states that "internal service funds are used by management to charge the costs of fleet management, workers' compensation, and health claims, to individual funds. The net revenue of certain activities of internal service funds is reported with governmental activities." The details of this $(383,950) difference are as follows: Change in net position of the internal service funds $ (399,701) Plus: charges to business -type activities 15,751 Net adjustment to increase net changes in fund balances - total governmental funds to arrive at changes in net position of governmental activities $ 383,9501 C. Explanation of Certain Differences Between the Proprietary Fund Statement of Net Position and the Government -Wide Statement of Net Position The proprietary fund statement of net position includes reconciliation between net position — total enterprise funds and net position of business -type activities as reported in the government -wide statement of net position. The description of the only item of that reconciliation is "adjustment to report the cumulative internal balance for the net effect of the activity between the internal service funds and the enterprise funds over time." The details of the $413.947 difference are as follows: Internal payable representing charges over cost to business -type activities - prior year Internal payable representing charges over cost to business -type activities - current year Net adjustment to increase net position - total enterprise funds to arrive at changes in net position of business -type activities 36 $ 429,698 { 15,751 $ 413,947 �`*-% CITY OF FARMERS BRANCH, TEXAS DRAFT 4/1 IBa NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 2024 3. DETAILED NOTES ON ALL FUNDS A. Cash Deposits with Financial Institutions At year-end, the carrying amount of the City's demand deposits, was $(2,084,633) and the bank balance was $1,029,913. The bank balance was completely covered by federal depository insurance or by collateral held by the City's agent in the City's name. The negative carrying amount is offset by the City's cash equivalents included in investments below. B. Investments The Interlocal Cooperation Act, chapter 791 of the Texas Government Code, and the Public Funds Investment Act, chapter 2256 of the Texas Government Code (the "Act"), provide for the creation of public funds investment pools, such as TexPool, through which political subdivisions and other entities may invest public funds. TexPool uses amortized cost to value portfolio assets and follows the criteria for GASB Statement No. 79 for use of amortized cost. TexPool has a credit rating of AAA from Standard & Poor's Financial Services. Local government investment pools in this rating category meet the highest standards for credit quality, conservative investment policies, and safety of principal. TexPool invests in a high- quality portfolio of debt securities investments legally permissible for municipalities and school districts in the state. To maximize investment opportunities, all funds (excluding the debt service fund and the internal service funds) participate in a pooling of cash and investment income. Each fund may liquidate its equity in the pool on demand. State statutes, City bond ordinances, and City resolutions authorize the City's investments. The City is authorized to invest in U.S. Government obligations and its agencies or instrumentalities, direct obligations of Texas and its agencies and instrumentalities, obligations of states, agencies, counties, cities and other political subdivisions of any state rated as to investment quality by a nationally recognized investment rating firm not less than A or its equivalent rating, insured or collateralized certificates of deposit, fully collateralized repurchase agreements, and government pools. The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure fair value of the assets. Level 1 inputs are quoted prices in active markets for identical securities in active markets. Level 2 inputs are valued using observable inputs other than those in Level 1. The City has no Level 3 inputs that are valued using significant unobservable inputs. As of September 30, 2024 , the City had the following investments: Interest Rate Risk. In accordance with its investment policy, the City manages its exposure to declines in fair values by limiting the weighted average maturity of its investment portfolio to 24 months (730 days). Credit Risk, The City's investment policy is to apply the "prudent investor" standard: "Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived." The City's investments were rated as follows: 37 Weighted Average Fair Value- Fair Value- Maturity Investments by Fair Value Level September 30, 2024 Level 1 Level 2 (in days) Municipal Obligations $ 41,084,339 $ 26,639,250 $ 14,445,089 195 Total Investments by Fair Value Level 41,084,339 26,639,250 14,445,089 Investments Measured at Amortized Cost Certificates of Deposit 60,260,854 136 TexPool 28,847,453 40 Total investments at Amortized Cost 89,108,307 Total Investments at Carrying Amount $ 130,192,646 Portfolio Weighted Average Maturity 124 Interest Rate Risk. In accordance with its investment policy, the City manages its exposure to declines in fair values by limiting the weighted average maturity of its investment portfolio to 24 months (730 days). Credit Risk, The City's investment policy is to apply the "prudent investor" standard: "Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived." The City's investments were rated as follows: 37 DRAFT /Q/,.202%1..O CITY OF FARMERS BRANCH, TEXAS NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 2024 Credit Quality Distribution for Securities with Credit Exposure as a Percentage of Total Investments Municipal Obligations Aa11AAA 4% Municipal Obligations AaaiAAA 3% Municipal Obligations Aa31AA 22% Municipal Obligations SP -1 2% Tex Pool AAAm 69% *Aaa/AAA is the highest credit quality issued by Moody's Investor's Services, and by Standard & Poor's, respectively. Concentration of Credit Risk. The City places no limit on the amount the City may invest in any one issuer. However, the City's investment policy calls for portfolio diversification by avoiding over -concentration in a specific maturity sector or specific instruments. The City's portfolio is 31% invested in Municipal Obligations as of September 30, 2024. The remaining 69% of the City's investments, which includes certificates of deposits, are invested in an external government investment pool. 38 CITY OF FARMERS BRANCH, TEXAS NOTES TO THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 C. Receivables (net of allowance for uncollectibles) DRAFT 41101209H.: EXHIBIT D-1 Receivables, as of year-end, for the City's individual major fund and nonmajor and internal service funds in the aggregate, including the applicable allowances for uncollectible accounts, are as follows: Lease Receivable The City leases tower space to various third parties, the terms of which expire between 2029 and 2036. The City recognized approximately $149,000 in lease revenue and approximately $149,000 in interest revenue during the current fiscal year related to the lease. Also, the City has a deferred inflow of resources associated with these leases that will be recognized as revenue over the lease term. As of September 30, 2024, the balance of the deferred inflow of resources was $2,397,496. As of September 30, 2024 the City's receivable for all lease payments was $2,591,778. PPP Receivable In fiscal year 2022, the City entered into an agreement with DSE Multisport, LP (DSE), under which DSE will operate, maintain, and retain fees from a multisport complex for 25 years, with one 5 -year renewal option succeeding the term of 25 years. The City receives advanced rental installments until construction of the complex is complete and DSE has moved into the premises. The City continues to report the rink as a capital asset with a value of $5,832,551. The City recognized approximately $256,000 in miscellaneous revenue and approximately $206,000 in interest revenue during the current fiscal year related to the partnership. The City utilized a discount rate of 3.79% in the determination of the receivable for installment payments. The City has a deferred inflow of resources associated with this partnership that will be recognized as revenue over the partnership term. As of September 30, 2024, the balance of the deferred inflow of resources was $6,155,144 . As of September 30, 2024 the City's receivable for all partnership payments was $5,875,845. 39 General Grants Debt Service Dallas Stars Multi- ort Nonmajor Non -Bond Governmental Internal Service Water and Sewer Nonmajor Stormwater utility Receivables: Property tax $ 1,105,782 $ $ 131,927 $ $ - $ - $ $ - $ - Othertaxes 3,818,722 7,503 325,135 Accounts 4,785,042 466,922 9,834 43,339 1,920,849 53,011 Unbilled accounts - 2,880,205 80,869 Assessments 231,349 - - PPPs 5,875,845 - Leases 2,591,776 - - - Accrued interest 449.478 16,697 161,090 120,309 21T786 171,571 20,300 Gross receivables 12,750,802 466,922 6,024,469 161,090 127,812 784,104 43,339 4,972,625 154,180 Less: Allowance for uncollectibles 1,836,819 - - 86293' (3,235' Net total receivables $ 10913,983 $ 466,922 $ 6,024,469 $ 161,090 $ 127,812 $ 784,104 $ 43339$ 4886_$1332 50945 Lease Receivable The City leases tower space to various third parties, the terms of which expire between 2029 and 2036. The City recognized approximately $149,000 in lease revenue and approximately $149,000 in interest revenue during the current fiscal year related to the lease. Also, the City has a deferred inflow of resources associated with these leases that will be recognized as revenue over the lease term. As of September 30, 2024, the balance of the deferred inflow of resources was $2,397,496. As of September 30, 2024 the City's receivable for all lease payments was $2,591,778. PPP Receivable In fiscal year 2022, the City entered into an agreement with DSE Multisport, LP (DSE), under which DSE will operate, maintain, and retain fees from a multisport complex for 25 years, with one 5 -year renewal option succeeding the term of 25 years. The City receives advanced rental installments until construction of the complex is complete and DSE has moved into the premises. The City continues to report the rink as a capital asset with a value of $5,832,551. The City recognized approximately $256,000 in miscellaneous revenue and approximately $206,000 in interest revenue during the current fiscal year related to the partnership. The City utilized a discount rate of 3.79% in the determination of the receivable for installment payments. The City has a deferred inflow of resources associated with this partnership that will be recognized as revenue over the partnership term. As of September 30, 2024, the balance of the deferred inflow of resources was $6,155,144 . As of September 30, 2024 the City's receivable for all partnership payments was $5,875,845. 39 CITY OF FARMERS BRANCH, TEXAS DRAFT NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 D. Capital, Lease and Subscription Assets Capital, lease and subscription asset activity for the year ended September 30, 2024 was as follows: Govemmental activities: Capital assets, not being depredated: Land and rights of way Construction in progress Total capital assets, not being depreciated Capital, lease and subscription assets, being depredated Improvements Buildings Equipment Infresbuchire Intangible assets- software/websibe SBITAs Lease building Total capital, lease and subscription assets, being depredated/amortized Less accumulated depreciation/amortization for., Improvements Buildings Equipment Infrasbuctirre Intangible assets - sofbaare/websites SBITAs Lease building Total accumulated depredation/amortization Total capital, lease and subscription assets, being depreciated/amortized, net Governmental activities capital, lease and subscription assets, net Business -type activities: Capital assets, not being depreciated: Land and rights of way Construction in progress Total capital assets, not being depredated Capital assets, being depreciated: Improvements Buildings Equipment Infrastructure Intangible assets- software/websites Total capital assets, being depreciated Less accumulated depredation for: Improvements Buildings Equipment Infrastructure Intangible assets - soffwarehvebsites Total accumulated depreciation Total capital assets, being depreciated, net Business -type activities capital assets, net Prima,, Government /10/X�0 E Beginning Ending Balance Additions Sales/Disposals Transfers Balance $ 39,411,462 $ - $ - $ - $ 39,411,462 15.690309 33,137,694 (3,915,760) 44,912243 55.101,771 33,137694 (3,915,760) 84,323,705 22,710,576 435,006 - - 23,145,582 76,744,524 - - 76,744,524 40,746,379 3,479,289 (1,087,122) - 43,138,546 149,619,625 1,294,653 (122,924) 3,915,760 154,707,114 3,431,362 127,758 - - 3,559,120 662,691 245,460 - 908,151 372,395 (372,3951 294,287,552 5582.168 (1.582441) 3915760 302,203037 (10,940,697) (783,633) 70,952 (11,653,378) (25,492,851) (1,613,916) - - (27,106,767) (31,793,464) (2,667,598) 1,068,602 262,900 (33,129,560) (86,518,386) (3,167,951) 122,924 (1,614,802) (91,178,215) (2,885,393) (192,800) 3,807 (3,074,386) (204,935) (257,781) - (462,716) (148,958) (66.3784 215,336 - (157,984,684) (8.750.057[ 1 406 862 (1,277,143) (166.605.0221 136,302,868 (3,167,891} {175,579) 2,638617 13559&015 S 191,404,639 $ 29,969,803 S (175,5791 $ (1,277,143) $ 219,921,720 $ 603,364 $ - $ - $ - $ 603,364 17,258,740 8,951,113 (13,203,985) 13,005,868 17,662,104 $951,113 - 13.203,985) 13,609,232 46,126 - - 46,126 14,693,323 - - - 14,693,323 7,148,061 319,870 - 219,703 7,687,834 107,630,400 869,449 (240,067) 12,576,482 120,836,264 1,119,635 19,156 407,800 1,546,591 130,637,545 1,208,475 (240,067) 13,203,985 144,809,938 (33,998) (1,146) - - (35,144) (9,124,414) (267,884) - (9,392,298) (5,410,330) (320,025) - - (5,730,355) (60,898,415) (2,551,302) 240,067 - (63,209,650) (786,239) (167,7041 (953,943) (76,253,396) 13,3080611 240,067 (79,321,390) 54,384,149 (2,099,586) 13203,985 65,488,548 $ 72.246,253 $ 6,851,527 $ - $ - $ 79.097.780 40 CITY OF FARMERS BRANCH, TEXAS DRAFT NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 I 0/2.Qf The preceding schedule includes internal service assets totaling $7,100,394 in the governmental activities. Internal service fund depreciation expense is allocated to the primary government based on each function or program's usage of its services. Depreciation expense (includes amortization expense of intangible assets) was charged to functions/programs of the primary government as follows: Governmental activities: General government Public safety $ 969,718 1,903,754 Public works, which includes the depreciation of general infrastructure assets 3,638,403 Culture and recreation 2,059,674 Unallocated 178,508 Total deoreciationlamortization expense - governmental activities $ 8.750.057 Business -type activities: Water and sewer $ 3,284,593 Stormwater utility 23,468 Total depreciation expense business -type activities $ 3,308,061 Commitments and Continent Liabilities Encumbrances are commitments related to unperformed contracts for goods or services (i.e. purchase orders). At year-end the amount of encumbrances expected to be honored upon performance by the vendor in the next year are as follows: Encumbrances General fund for general purposes $ 1,263,029 General fund for capital assets 3,932,626 Grants fund 19,328 Water and sewer fund 69,673 Water and sewer fund for capital assets 711,199 Nonmajor Stormwater utility fund 5,439 Nonmajor funds 814,449 Total $ 6,815,743 The City has entered into several construction contracts during the fiscal year, which include street improvements, replacement of water mains, and the construction of municipal facilities. As of September 30, 2024, the City had outstanding construction contracts totaling $23,440,830 that will be financed from operating funds. 41 Construction Commitments Water and sewer $ 7,789,189 Non -bond capital projects fund 4,419,345 Dallas Stars multi -sport fund 5,645,260 Nonmajor capital projects funds 5,587,036 Total $ 23,440,830 41 CITY OF FARMERS BRANCH, TEXAS DRAFT / 1 0 DQ 2 %W NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 E. Interfund Receivables, Payables and Transfers Government interfund transfers during the year ended September 30, 2024 were as follows: Eliminations Interfund transfers are reported in the governmental and proprietary fund financial statements. In the entity -wide statements, interfund transfers are eliminated within the governmental activities column and business -type column, as appropriate. Pu-r.-ose of Transfers Transfers are used to (1) move unrestricted revenues to finance various programs in accordance with budgetary authorizations, (2) for the general fund to the capital projects funds for various construction projects including the Event Center, and (3) for the water and sewer fund to the general fund for a payment -in -lieu -of -taxes. Interfund balances at September 30, 2024 consisted of the following receivables and payables: Due from Other Funds Due to Other Funds General Fund Purpose HoteVMotel Fund - Special Revenue $ 1,328,735 Event Center - Construction 1,328,735 All of the above balances are expected to be repaid within one year. F. Tax Abatements I Tax Increment Financing Zones I Public Improvement Districts Tax Abatements — The City of Farmers Branch enters into tax abatement agreements with local residents and businesses under Chapter 380 of the Texas Local Government Code. Under this chapter, the City may provide incentives consisting of loans and grants of city funds, use of city personnel, facilities and services with or without charge, for the promotion of economic development. The City has three categories of economic development agreements: Residential Demolition/Rebuild Incentive Procram — This program provides property tax abatements to encourage redevelopment of existing housing stock in the City. The program may include a demolition incentive grant up to $30,000 and annual incentive grants (between three and seven years) equal to the difference between the City property taxes assessed and paid for the new improvements (new residential structure excluding the land) for a given tax year and the City property taxes for the residential structure prior to demolition (excluding the land) for the tax year in which the structure was demolished (the "Base Year"). The amounts and number of years the incentive will be paid vary depending on the value of the residential structure and the program in place at the effective date of the agreement. Abatements are obtained through application prior to beginning the improvements and commence when the City issues a certificate of occupancy or certificate of completion for the new residence. The property owner commits to demolition of the existing residence and the construction of a new residence within 24 months of the effective date of the agreement. If construction is not completed as agreed, the City has the option to terminate the agreement and seek reimbursement of the demolition cost reimbursement incentive. No other commitments were made by the City as part of those agreements. For the fiscal year ended September 30, 2024, the City abated property taxes totaling $176,487 for 37 properties under this program. 42 TRANSFERSIN Nonmajor General Non -Bond Governmental Internal Service TRANSFERS OUT Fund Fund Funds Fund Total General Fund $ - $ 4,756,000 $ 2,974,663 $ 376,800 $ 8,107,463 Stormwater Utility Fund 92,800 - - - 92,800 Nonmajor governmental funds 466,000 1,633,500 585,715 2,685,215 Water & Sewer Fund 5,035,100 - 5,035,100 Total $ 5,593,900 $ 6,389,500 $ 3,560,378 X800 $ 15,920,578 Eliminations Interfund transfers are reported in the governmental and proprietary fund financial statements. In the entity -wide statements, interfund transfers are eliminated within the governmental activities column and business -type column, as appropriate. Pu-r.-ose of Transfers Transfers are used to (1) move unrestricted revenues to finance various programs in accordance with budgetary authorizations, (2) for the general fund to the capital projects funds for various construction projects including the Event Center, and (3) for the water and sewer fund to the general fund for a payment -in -lieu -of -taxes. Interfund balances at September 30, 2024 consisted of the following receivables and payables: Due from Other Funds Due to Other Funds General Fund Purpose HoteVMotel Fund - Special Revenue $ 1,328,735 Event Center - Construction 1,328,735 All of the above balances are expected to be repaid within one year. F. Tax Abatements I Tax Increment Financing Zones I Public Improvement Districts Tax Abatements — The City of Farmers Branch enters into tax abatement agreements with local residents and businesses under Chapter 380 of the Texas Local Government Code. Under this chapter, the City may provide incentives consisting of loans and grants of city funds, use of city personnel, facilities and services with or without charge, for the promotion of economic development. The City has three categories of economic development agreements: Residential Demolition/Rebuild Incentive Procram — This program provides property tax abatements to encourage redevelopment of existing housing stock in the City. The program may include a demolition incentive grant up to $30,000 and annual incentive grants (between three and seven years) equal to the difference between the City property taxes assessed and paid for the new improvements (new residential structure excluding the land) for a given tax year and the City property taxes for the residential structure prior to demolition (excluding the land) for the tax year in which the structure was demolished (the "Base Year"). The amounts and number of years the incentive will be paid vary depending on the value of the residential structure and the program in place at the effective date of the agreement. Abatements are obtained through application prior to beginning the improvements and commence when the City issues a certificate of occupancy or certificate of completion for the new residence. The property owner commits to demolition of the existing residence and the construction of a new residence within 24 months of the effective date of the agreement. If construction is not completed as agreed, the City has the option to terminate the agreement and seek reimbursement of the demolition cost reimbursement incentive. No other commitments were made by the City as part of those agreements. For the fiscal year ended September 30, 2024, the City abated property taxes totaling $176,487 for 37 properties under this program. 42 CITY OF FARMERS BRANCH, TEXAS DRAt 1101,2DQF-M NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 Economic Development Agreements — The purpose of these agreements is for the promotion of the expansion of existing businesses within the City and the recruitment of new business enterprises to the City. These agreements include repayment provisions should the recipient fail to fully meet its commitments. The names of businesses receiving sales tax rebates are not disclosed, as they are made confidential by Texas Tax Code Section 151.027. o A ten-year agreement for a 50 percent property tax rebate and sixty quarterly sales tax grants of 50% of the sales tax paid for years 1 to 7 and 25% of the sales tax paid for years 8 to 15 to a security services company to relocate its headquarters and call center. The incentive period began July 2015. The company must maintain a minimum level of taxable sales and continuous occupancy of the premises during the terms of the agreement. The abatements amounted to $343,233 during the fiscal year ended September 30, 2024. o A fifteen -year agreement for a tangible personal property tax reduction of 100 percent for years one through five, a 50 percent reduction for years six through eight, and a 25 percent reduction for years nine and ten plus a cash grant of $75,000 to offset costs for relocation to the Leased Premises for Tenet Healthcare Corporation ("THC"). The company must maintain a nine hundred (900) employment positions within the City and maintain the lease. The agreement was executed in June 2019. During the fiscal year ended September 30, 2024, THC received the fourth annual installment of the property tax abatement in the amount of $339,628. o An agreement to rebate 30% of tangible personal property tax for ten years for BSN Sports, LLC to maintain tangible personal property at the leased premises of at least $18,000,000 as of January 1 of each calendar year. The agreement was executed in June 2017. The abatements amounted to $9,160 for the fiscal year ended September 30, 2024. o A ten-year agreement for semi-annual economic development grants equal to 50 percent of use taxes collected by the City to a home building company. The company must purchase building materials from Farmers Branch vendors to be eligible for the grants. The effective date of the agreement was January 2018. The abatement amounted to $5,020 for the fiscal year ended September 30, 2024. Tax Increment Financing The City has three active reinvestment zones ("TIF No. 2", "TIF No. 4" and "TIRZ No. 3") for the purpose of tax increment financing of infrastructure. In accordance with State law pertaining to tax increment reinvestment zones, the costs of public infrastructure improvements in the zone are repaid by the contribution of future tax revenues by each taxing unit that levies taxes against the property. The City contributed 100% of the incremental tax revenues associated with the growth of the tax base in TIF No. 2 to a special fund to pay costs of infrastructure in the zones. There are $145,328,683 of infrastructure improvements in the TIF No. 2 project plan, including streets, water and sewer projects and the TIF No. 2 increment for tax year 2023 is $36,332,170 TIF No. 2 was scheduled to expire December 31, 2020; however, the City extended its participation on November 17, 2020 from January 1, 2021 until December 31, 2031 at a participation rate of 25%. 43 CITY OF FARM DRAFT � / 1 012DQ ""ERS BRANCH TEXAS 2 NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 For tax years 2017, 2018, and 2019, the City contributed 1% of the incremental tax revenues generated from the City's ad valorem tax associated with the growth of the tax base in TIRZ No. 3 to a special revenue fund to reduce the public improvement district assessments within the zone. For years 2020 through and including 2052, the City will contribute 40% of the incremental tax revenue generated by the City's ad valorem tax associated with the growth of the tax base in TIRZ No. 3 to a special revenue fund to reduce the public improvement district assessment associated with the zone. There are $729,995,944 of infrastructure improvements in the TIRZ No. 3 project plan and the TIRZ No. 3 increment for tax year 2023 is $291,998,377. The TIRZ No. 3 is scheduled to terminate in tax year 2052. For tax year 2023, the City contributed 100% of the incremental tax revenues generated from the City's ad valorem tax associated with the growth of the tax base in TIF No. 4 to a capital project fund for improvements to the commercial corridor on the east and west of the Interstate Highway 35W and Valwood Park. For years 2021 through and including, the City will contribute 100% of the incremental tax revenue generated by the City's ad valorem tax associated with the growth of the tax base in TIF No. 4 to a capital projects fund for improvements within the district. The TIF No. 4 increment for tax year 2023 is $98,113,062. The TIF No. 4 is scheduled to terminate in tax year 2046. The City Council, upon recommendation of the Council -appointed TIF Board for each district, can enter into economic grant agreements with developers to utilize TIF funds. Unlike contractual obligations, TIF grants are subject to availability of TIF funds, and any balance owed to a developer upon termination of the TIF district will no longer be considered an obligation of the City. The City made $2,011,454 in property tax rebates from general TIF resources. Public Improvement District — Under Subchapter A of Chapter 372, Texas Local Government Code, as amended (the "PID Act",) the City authorized the creation of the Mercer Crossing Public Improvement District (the "PID") to impose annual assessments on property owners within the PID (the "Assessments") to pay for certain public improvements (the "Public Improvements"). The PID is composed of approximately 397.6 acres that are being developed as a master -planned mixed-use development known as "Mercer Crossing". The development is expected to include, among other things, single-family homes, active adult senior condominiums, two hotels, office, retail, commercial, and an amphitheater. Pursuant to a master development agreement and a reimbursement agreement (together, the "Agreements"), the City has agreed to reimburse the Developer for a portion of the costs of the Public Improvements within the PID in a total amount not to exceed $43,247,845, plus accrued interest, from assessment revenues. Under the terms of the Agreements, the Assessments may be offset in each year by tax increment revenues generated with Tax Increment District, which includes the PID property. The only obligation of the City under Agreements is the collection and enforcement of the Assessments and the payment of annual Assessment revenues to the Mercer Crossing developer pursuant to the terms of the Agreements. The City has not issued debt to fund its obligations under the Agreements. 44 CITY OF FARMERS BRANCH, TEXAS DRAFT 4/0i O/x2DQ 2 E. NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 G. Long -Term Liabilities General Obligation Bonds — The City of Farmers Branch issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds have been issued for governmental activities. Currently, the City has no outstanding general obligation bonds issued for business -type activities. General obligation bonds are direct obligations and pledge the full faith and credit of the City. These bonds are generally issued as serial bonds with equal amounts of principal maturing each year with maturities that range from five to 20 years. The City is required to compute, at the time taxes are levied, the rate of tax required to provide a fund to pay interest and principal at maturity. The City is in compliance with this requirement. Direct Placement Bonds — The City of Farmers Branch issues direct placement general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Direct placement general obligation bonds have been issued for governmental activities. Bonds payable at September 30, 2024 are comprised of the following individual issues: Legal Debt Margin — The City is permitted by Article XI, Section 5, of the State of Texas Constitution to levy taxes up to $2.50 per $100 of assessed valuation for general governmental services including the payment of principal and interest on general obligation long-term debt. Calculation of Leqal Debt Marqin — September 30, 2024 Adjusted Tax Base Valuation $ 9,280,116,565 Constitutional Limit 2.5% of assessed valuation Maximum Constitutional Revenue Available $ 232,002,914 Tax Rate to Achieve Maximum Tax Revenue $ 2.5000 per $100 of valuation Adopted Tax Rate for Fiscal Year 2023-24 $ 0.56900 per $100 of valuation Available Unused Constitutional Maximum Tax Rate $1.9310 per $100 of valuation Landfill Closure and Post -closure Costs —The City owns a sanitary landfill site located in the City of Lewisville, Texas. On October 1, 2008, the City renewed a previous ten-year contract with Allied Waste North America, Inc. ("Allied Waste") for the operation and management of the landfill. The current agreement continues until all permitted air space has been filled with waste material. All payments for operations & management are variable. The landfill operates on a "cell" basis and state and federal laws require the City to close the landfill once its capacity is reached and to monitor and maintain the site for 30 subsequent years. The site capacity of 53.2 million cubic yards will be reached in approximately 30 years. The City recognizes a portion of the final closure and post -closure care liability in each operating period even though actual final payout will not occur until the landfill is completely closed. The amount recognized as a liability is based on the landfill capacity used as of the balance sheet date. As of September 30, 2024, the City had incurred a liability of $10,420,437, which represents the amount of costs estimated to date based on 48.69% of landfill capacity used to date. The remaining estimated liability for these costs is $10,980,568, which will be recognized as the remaining capacity is used. Additionally, during the term of the agreement, the City is required to maintain a special revenue fund for future landfill closure and post -closure costs and has restricted the fund balance of $7,877,113 for these costs. The estimated cost of closure and post -closure care are subject to changes such as the effects of inflation, revision of laws, and other variables. 45 Interest Sale Original Rates to Outstanding Bonds Payable: Date Borrowing Maturiq. (%r Final Matu6t? Sept. 30 2024 Bonds - Public Offerings General obligation refunding bonds, taxable 2011 7,035,000 0.44-4.00 2025 $ 1,155,000 Certificates of obligation 2013 6,500,000 2.50-4.50 2032 3,460,000 General obligation bonds 2014 13,920,000 2.00-5.00 2034 6,420,000 Certificates of obligation 2016 2,545,000 2.00-3.00 2036 1,670,000 Certificates of obligation 2018 10,515,000 3.00-5.00 2038 12,815,000 General obligation bonds 2018 13,540,000 3.25-4.00 2038 4,655,000 General obligation bonds 2020 12,305,000 2.00-4.00 2039 10,180,000 Certificates of obligation 2022 23,810,000 3.36-4.84 2047 23,215,000 Total Bonds Payable $ 90,170,000 $ 63,570,000 Legal Debt Margin — The City is permitted by Article XI, Section 5, of the State of Texas Constitution to levy taxes up to $2.50 per $100 of assessed valuation for general governmental services including the payment of principal and interest on general obligation long-term debt. Calculation of Leqal Debt Marqin — September 30, 2024 Adjusted Tax Base Valuation $ 9,280,116,565 Constitutional Limit 2.5% of assessed valuation Maximum Constitutional Revenue Available $ 232,002,914 Tax Rate to Achieve Maximum Tax Revenue $ 2.5000 per $100 of valuation Adopted Tax Rate for Fiscal Year 2023-24 $ 0.56900 per $100 of valuation Available Unused Constitutional Maximum Tax Rate $1.9310 per $100 of valuation Landfill Closure and Post -closure Costs —The City owns a sanitary landfill site located in the City of Lewisville, Texas. On October 1, 2008, the City renewed a previous ten-year contract with Allied Waste North America, Inc. ("Allied Waste") for the operation and management of the landfill. The current agreement continues until all permitted air space has been filled with waste material. All payments for operations & management are variable. The landfill operates on a "cell" basis and state and federal laws require the City to close the landfill once its capacity is reached and to monitor and maintain the site for 30 subsequent years. The site capacity of 53.2 million cubic yards will be reached in approximately 30 years. The City recognizes a portion of the final closure and post -closure care liability in each operating period even though actual final payout will not occur until the landfill is completely closed. The amount recognized as a liability is based on the landfill capacity used as of the balance sheet date. As of September 30, 2024, the City had incurred a liability of $10,420,437, which represents the amount of costs estimated to date based on 48.69% of landfill capacity used to date. The remaining estimated liability for these costs is $10,980,568, which will be recognized as the remaining capacity is used. Additionally, during the term of the agreement, the City is required to maintain a special revenue fund for future landfill closure and post -closure costs and has restricted the fund balance of $7,877,113 for these costs. The estimated cost of closure and post -closure care are subject to changes such as the effects of inflation, revision of laws, and other variables. 45 CITY OF FARMERS BRANCH, TEXAS DRAFT NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 I Ot�DQ 2G Chanes in Iona -term liabilities - Changes in the City's long-term liabilities for the year ended September 30, 2024, are as follows: Governmental Activities Bonds payable Bonds - public offerings Unamortized amounts: For issuance premiums Total bonds payable - public offerings Compensated absences Net pension liability Arbitrage liability Total OPEB liability Claims SBITAs Leases Landfill closure and postclosure care costs Governmental activities long-term debt Business -type activities Compensated absences Net pension liability Total OPEB liability Business -type activities long-term debt Total Balance at Balance at Due within Beginning of Year Increase Decrease End of Year One Year $ 67,715,000 $ $ (4,145,000) $ 63,570,000 $ 3,875,000 2,383,877 .202.826. 2.181.051 70,098,877 (4,347,826) 65,751,051 3,875,000 5,272,821 4,350,019 (4,331,476) 5,291,364 665,955 44,768,451 - (12,649,468) 32,118,983 - - 133,864 $ 2,882,303 $ 184.783 $ 133,864 - 3,697,262 - (82,506) 3,614,756 444,326 799,416 4,786,342 (4,752,914) 832,844 722,831 430,957 245,460 (315,305) 361,112 285,764 231,700 19,355,000 (231,700) 26,160,956 2035-2039 9,733,140 687,297 18,140,150 10,420,437 _ 135,032,624 $ 10 202,982 $ 26.711 195 118524,411 $ 5993.876 $ 209,374 $ 184,783 $ (169,387) $ 224,770 $ 24,403 2,307,267 - (632,209) 1,675,058 September 30 365,662 (8.158 357,504 43.944 $ 2,882,303 $ 184.783 $ 809,754 $ 2,257332 $ 6B,347 $ 137,914,927 $ 1Q387,765 $ (27.520,949) $ 120,781.743 $ 6.062223 Internal service funds predominantly serve the governmental funds. Accordingly, long-term liabilities for them are included as part of the totals for governmental activities. At year-end, internal service fund liabilities for claims payable of $832,844, compensated absences of $29,180, total OPEB liability of $195,554, and net pension liability of $954,720 are included in the above amounts. In addition, for the governmental activities, claims payable, compensated absences, total OPEB liability and net pension liability are generally liquidated by the general fund. The landfill closure and post-olosure care costs will be liquidated from the landfill closure/past-closure fund. The debt service requirements at September 30, 2024 are as follows: 46 Governmental Activities Year Ended Bonds Payable September 30 Principal Interest Total 2025 $ 3,875,000 $ 2,168,477 $ 6,043,477 2026 4,025,000 2,180,918 6,205,918 2027 3,560,000 2,042,339 5,602,339 2028 3,685,000 1,942,620 5,627,620 2029 3,825,000 1,775,525 5,600,525 2030-2034 19,355,000 6,805,956 26,160,956 2035-2039 14,355,000 3,785,150 18,140,150 2040-2044 6,310,000 1,893,105 8,203,105 2045-2049 4,580,000 339,316 4,919,316 Total $ 63,570,000 $ 22,933,406 $ 86,503,406 46 CITY OF FARMERS BRANCH, TEXAS DRAFT NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 / 0%2p 2: SBITA Liabilit, - The City has an agreement as subscriber for various software, the terms of which expire in 2026. During the year ended September 30, 2024, the City did not recognize any subscription expense for variable expenses not previously included in the measurement of the SBITA liability. The following is a schedule by year of payments under the subscription as of September 30, 2024: Year Ending September 30, Principal Interest Total 2025$ 285,764 $ 8,779 $ 294,543 2026 75,348 2,524 77,872 $ 361,112 $ 11,303 $ 372,415 CITY OF FARMERS BRANCH, TEXAS DRAFT NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 H. Risk Management and Other Information / O/x2DQ- The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; natural disasters; and, injuries to employees. A Schedule of Insurance Policies in Force showing the type of coverage, deductible, and liability limit is shown in Table 18. Workers' Compensation Insurance - The City has established the workers' compensation fund (an internal service fund) to account for workers' compensation uninsured risks of loss. Under this program, the workers' compensation fund provides coverage for up to a maximum of $350,000 for each workers' compensation occurrence claim. The costs associated with this self-insurance plan are funded by charges to the City's other funds. Liabilities include provisions for claims reported and claims incurred, but not reported. The provision for reported claims is computed by the City's third -party administrator based upon standard actuarial principles. The provision for claims incurred, but not yet reported, is estimated based on the City's experience and an actuarial study that was performed during fiscal year 2024. State law provides that the City is relieved of liability if notice of employee injury has not been received within 30 days of the date on which the injury occurs. At September 30, 2024, the amount of workers' compensation liabilities was $268,324. Liabilities of the fund are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. The liability for unpaid claims includes allocated loss adjustment expenses (ALAE), which are primarily legal expenses. Changes in the balance of claims liability during the past two years are as follows: Current Year Claims and Beginning Fiscal Year Changes in Claims Ending Fiscal Fiscal Year Liability Estimates Payments Year Liability 2022-2023 $ 287,925 $ 386,120 $(382,814) $ 291,231 2023-2024 $ 291,231 $ 280,305 $(303,212) $ 268,324 At September 30, 2024, workers' compensation fund cash and investments of $1,450,663 were held for funding future obligations. The City continues to carry commercial insurance for other risks of loss (except medical insurance as described in the following section). Settled claims resulting from these risks have not exceeded commercial insurance coverage in any of the past three fiscal years. Group Medical Insurance — The health claims fund (an internal service fund) was established to account for the provision of group medical insurance coverage for employees and their dependents. The City's medical insurance program is a "self-insured" plan funded by both the City and participating employees. The City makes a predetermined contribution to the plan each month for a portion of medical group insurance coverage. This is done on a bi-monthly basis for qualifying City employees and their dependents. Employees contribute through payroll deductions for the balance of their medical coverage. The City's medical insurance program is made up of two contracts, a specific stop loss contract and an aggregate stop loss contract. The specific stop loss contract has a specific deductible of $150,000 per individual and an $80,000 aggregating specific corridor with an unlimited lifetime maximum benefit on eligible expenses. The aggregate stop loss contract has a minimum attachment point of $5,342,990, which may increase based on enrollment. The aggregate contract will pay up to $1,000,000 on total claims over the attachment point. All claims are reviewed and processed by an independent insurance company. The insurance company pays claims based on the health plan and the City reimburses the insurance company for each claim paid. The insurance company charges the City a fee for this service. At September 30, 2024, the amount of estimated claims payable was $564,520. Changes in the reported liability since October 1, 2022 resulted from the following: Beginning Fiscal Current Year Claims and Claim Ending Fiscal Fiscal Year Year Liability Changes in Estimates Payments Year Liability 2022-2023 $ 551,849 $ 3,841,593 $(3,885,257) $ 508,185 2023-2024 $ 508,185 $ 4,506,037 $(4,449,702) $ 564,520 Claims payable include provisions for claims reported and claims incurred but not reported. The provision for reported claims and for claims incurred but not reported is determined by an independent consultant. 48 CITY OF FARMERS BRANCH, TEXAS DRAFT Z /1OaDQ 2 r-., NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 Deferred Com:,ensation Plan - The City offers all employees a deferred compensation plan through Empower Retirement in accordance with Internal Revenue Code Section 457. The 457 Plan provides employees an option to supplement their TMRS retirement benefits by making pre-tax contributions to their plan. All assets are held in trust for the exclusive benefit of participants and their beneficiaries. Therefore, it is not reported in the financial statements of the City. Benefit provisions are contained in the plan document and were established and can be amended by the action of City Council. Employees may enroll in the plan and/or change their contribution amounts at any time. The City does not have any financial contribution obligations regarding this 457 Plan and did not make any contributions during the year ended September 30, 2024. 1 Commitments and Contin encies The City has several long-term agreements with significant commitments as follows: a. City of Dallas Water Purchase Agreement - The City purchases treated water from the City of Dallas under a 30 -year contract negotiated in August 2010. The City makes payments to the City of Dallas at a rate of $.4480 per 1,000 gallons plus $312,607 per year for each million gallons per day rate of flow (maximum delivery rate). The City paid $7,060,234 to the City of Dallas for the fiscal year ended September 30, 2024. b. Trinity River Authority 4he "Authority') Sewage Disposal Agreement - On November 29, 1973, the City, along with other cities, entered into a 50 -year contract with the Authority, whereby the Authority will provide and operate a regional wastewater treatment plant and wastewater conveyance facility constructed with the Authority's funds. At the conclusion of the 50 years (in 2023), the contract shall remain in effect until any remaining TRA bonds have been repaid in full. In return, the cities agreed to pay for such services based on a usage formula that will provide reimbursements for operations, maintenance, and debt service payments to the Authority. The cities are jointly and severally responsible for the above payments. Each city's proportionate share is determined annually according to its contributing flow to the system. The City paid $5,526,428 to the Authority for the fiscal year ended September 30, 2024. The City is involved in various legal actions in which claims of varying amounts are being asserted against the City. The City follows the practice of providing for any uninsured claims when a loss is probable and a loss becomes fixed or determinable in amount. In the opinion of City management, these actions will not result in a significant impact of the City's financial position. Events could occur that would change this estimate materially in the near term. The City participates in several federal grant programs that are governed by various rules and regulations of the grantor agencies. Amounts received or receivable from grant agencies are subject to audit and adjustment by the grantor agencies. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, which may be disallowed by the grantor, cannot be determined at this time, although the City expects such amounts, if any, to be immaterial. For the year ended September 30, 2024, grant expenditures did exceed the threshold for the single audit requirement; therefore, a single audit will be performed regarding the City's federal funding. 1 Postemplovment Benefits Other Than Pensions _O[ PEBI Plan Description - The City of Farmers Branch administers a single -employer defined benefit OPEB plan, the "Retiree Health Plan". The plan provides OPEB through the City's group health insurance plan, which covers both active and retired members (see funding policy below). Contributions are established through City policy as approved by City Council. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75. The Retiree Health Plan does not issue a publicly available financial report. The eligibility requirements are: • Must be a current, full-time employee hired prior to January 1, 2007 and are not eligible for Medicare; • Must have worked for the City for at least ten years, which needs to be concurrent; • Must meet the eligibility requirements of the Texas Municipal Retirement System (TMRS) and retire from the City; and, • Must be on the City's health plan at the time of retirement, and for dependents to be carried on the health plan, they must be on the plan at that time. Benefits Provided -The City contributes $625 per month toward the cost of a health reimbursement account (HRA) administered through HSA Bank, plus an annual lump sum funding of $500 to the HRA, and the full premium for life insurance coverage of $12,000. The City's contribution for future health insurance premiums is capped at a maximum of $625 per month. As an alternative, to the HRA, retirees may be provided an age-adjusted high deductible health insurance plan with no contribution from the City. Plan members receiving benefits contribute the full group premium for dental or vision plans selected. They also pay the full premium for age- adjusted life insurance coverage if they choose coverage after they turn 65. 49 CITY OF FARMERS BRANCH, TEXAS NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 DRAT 4/ 012DQ 2 r-., Retirees are required to enroll in Medicare, if they are eligible, at age 65. For those who are not eligible for Medicare, the City will pay the monthly premium for Medicare Part A for any retirees who reach age 65 and must provide documentation from Social Security on Medicare ineligibility. Employees Covered by Benefit Terms_— At the December 31, 2023 measurement date, the following employees were covered by the benefit terms: Retirees and beneficiaries Inactive, nonretired members Active employees Total 66 99 165 The City's retiree healthcare benefit is only provided to employees who were hired prior to January 1, 2007 and are not eligible for Medicare. Total OPES Liability The City's total OPEB liability of $3,972,260 was measured as of December 31, 2023, and was determined by an actuarial valuation as of December 31, 2022. Actuarial Assumptions and Other Inuuts — The total OPEB liability in the December 31, 2022 actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods including in the measurement, unless otherwise specified: Valuation Date: Methods and Assumptions: Actuatrial cost method Actuarial Assumptions and Methods 12/31/2022 Individual Entry -Age Normal Discount rate 3.77% as of December 31, 2023 Inflation 2.50% Salary increases 3.60% to 11.85%, including inflation Based on the experience study covering the four-year period ending December 31, 2022 as Demographic assumption conducted for the Texas Municipal Retirement System For healthy retirees, the gender -distinct 2019 Municipal Retirees of Texas mortality tables are used, with male rates multiplied by 103% and female rates multiplied by 105%. The rates are Mortality projected on a fully generational basis using the ultimate mortality improvement rates in the MP -2021 table to account for future mortality improvements. Health care cost trends N/A. The City's subsidy is a fixed dollar contribution to a retiree health care account Medical: 85% of retirees who are eligible for a subsidy; Participation rates Life Insurance: 100% of eligible retirees Other Information: The discount rate changed from 4.05% as of December 31, 2022 to 3.77% as of December 31, Notes 2023. Additionally, the demographic and salary increase assumptions were updated to reflect the 2023 TMRS experience study. 50 CITY OF FARMERS BRANCH, TEXAS NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 Channes in the Total OPEB Liabili*, DRAFT 411012JO"r- Total OPEB Liability Balance at 101112023 $ 4,062,924 Changes for the year. Service cost 110,736 Interest on the total OPEB liability 156,152 Difference between expected and actual experience of the total OPEB liability 58,138 Changes of assumptions 109,686 Benefit payments 525,3761 Net changes (90,664) Balance at 913012024 $ 3,972,260 There were no changes in benefit terms during the year. Changes of assumptions reflect a change in the discount rate from 4.05% as of December 31, 2022 to 3.77% as of December 31, 2023. The discount rate was based on the tax-exempt municipal bond rate based on an index of 20 -year general obligation bonds with an average AA credit rating as of the measurement date. Sensitivity of the Total OPEB Liabiliti to the Discount Rate Assumption — Regarding the sensitivity of the total OPEB liability to changes in the discount rate, the following presents the City's total OPEB liability, calculated using a discount rate of 3.77%, as well as what the City's total OPEB liability would be if it were calculated using a discount rate that is one percent lower or one percent higher: 1 % Decrease Discount Rate 1 % Decrease 2.77% 3.77% 4.77% Total OPEB Liability $ 4,105,286 $ 3,972,260 $ 3,833,013 Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates Assumption — Regarding the sensitivity of the total OPEB liability to changes in the healthcare cost trend rates, the following presents the City's total liability, calculated using the assumed trend rates as well as what the City's total OPEB liability would be if it were calculated using trend rates that are one percent lower or one percent higher: Healthcare Cost 1% Decrease Trend Rate 1%Increase Total OPEB Liability $ 3,972,260 $ 3,972,260 $ 3,972,260 Note: The City's retiree medical benefit is a set dollar amount that is not impacted by future medical trends. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended September 30, 2024, the City of Farmers Branch recognized OPEB expense of $312,659. At September 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Benefits paid subsequent to the measurement date Changes in assumptions Difference betweeen expected and actual experience Total 51 Deferred Outflows Deferred Inflows of Resources of Resources 394,032 $ - 133,343 158,392 129,318 18,046 $ 656,693 $ 176,438 CITY OF FARMERS BRANCH, TEXAS DRAF"r NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 / O/X2DQ-2r The amount of $394,032 reported as deferred outflows of resources related to OPEB resulting from benefitpaid subsequent to the measurement date will be recognized as a reduction of the total OPEB liability for the year ending September 30, 2025. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Year Ended September 30: 2025 2026 2027 2028 Total Allocation of OPEB Items $ 29,310 7,763 39,558 9,592 $ 86,223 The City allocates OPEB items between governmental activities and business -type activities on the basis of employee payroll funding. For the governmental activities, the total OPEB liability is liquidated by the general fund and fleet and facilities management fund. For the business -type activities, the total OPEB liability is liquidated by the water and sewer fund. 1 Defined Benefit Pension Plan Plan Description The City of Farmers Branch participates as one of over 900 cities in the defined benefit cash -balance plan administered by the Texas Municipal Retirement System (TMRS). TMRS is a statewide public retirement plan created by the State of Texas and administered in accordance with the TMRS Act, Subtitle G (TMRS Act) as an agent multiple -employer retirement system for employees of Texas participating cities. The TMRS Act places the general administration and management of the System with a six- member, governor appointed, Board of Trustees, however TMRS does not receive any funding from the State of Texas. TMRS issues a publicly available annual comprehensive financial report that can be obtained at. _ All eligible employees of the City are required to participate in TMRS. The City does not participate in the Social Security system. Benefits Provided TMRS provides retirement, disability, and death benefits. Benefit provisions are adopted by the governing body of the City, within the options available in the state statutes governing TMRS. At retirement, the benefit is calculated as if the sum of the employee's contributions, with interest, and the city -financed monetary credits with interest were used to purchase an annuity. Members may choose to receive their retirement benefit in one of seven payments options. Members may also choose to receive a portion of their benefit as a Partial Lump Sum Distribution in an amount equal to 12, 24, or 36 monthly payments, which cannot exceed 75% of the members deposits and interest. Employees covered by benefit terms: At the December 31, 2023 valuation and measurement date, the following employees were covered by the benefit terms: Inactive employees or beneficiaries currently receiving benefits 433 Inactive employees entitled to but not yet receiving benefits 410 Active employees 422 Total 1,265 Contributions Member contribution rates in TMRS are either 5%, 6%, or 7% of the members total compensation, and the City matching ratios are either 100%, 150%, or 200%, both as adopted by the governing body of the city. Under the state law governing TMRS, the contribution rate for each city is determined annually by the actuary, using the Entry Age Normal (EAN) 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 City of Farmers Branch were required to contribute 7% of their annual compensation during the fiscal year. The contribution rates for the City of Farmers Branch were 19.15% and 20.19% in calendar years 2023 and 2024, respectively. The City's contributions to TMRS for the year ended September 30, 2024 were $9,378,099 and were $1,571,561 more than the required contributions. 52 CITY OF FARMERS BRANCH, TEXAS NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 Net Pension Liabili'v DRAFT4/1O(.ZO� The City's Net Pension Liability (NPL) was measured as of December 31, 2023, and the Total Pension Liability (TPL) used to calculate the Net Pension Liability was determined by an actuarial valuation as of that date. Actuarial assumptions: The Total Pension Liability in the December 31, 2023 actuarial valuation was determined using the following actuarial assumptions: Inflation 2.50% per year Overall payroll growth 2.65% per year Investment rate of return 6.75%, net of pension plan investment expense, including inflation Salary increases were based on a service -related table. Mortality rates for active members are based on the PUB(10) mortality tables with 110% of the Public Safety table used for males and 100% of the General Employee table used for femals. Mortality rates for healthy retirees and beneficiaries are based on the Gender -distinct 2019 Municipal Retirees for Texas mortality tables. Male rates are multiplied by 103% and female rates are multiplied by 105%. The rates for actives, healthy retirees and beneficiaries are projected on a fully generational basis by the most recent Scale MP -2021 to account for future mortality impovements. For disabled annuitants, the same mortality tables for healthy retirees are used with a 4 -year set -forward for males and a 3 -year set -forward for females. In addition a 3.5% and 3.0% minimum mortality rate is applied for males and females, respectively, to reflect the impairment for younger members who become disabled. The rates are projected on a fully generational basis by the most-recen Scale MP -2021 to account for future mortality improvements subject to the 3% floor. The actuarial assumptions were developed primarily from the actuarial investigation of the experience of TMRS over the four-year period from December 31, 2018 to December 31, 2022. The assumptions were adopted in 2023 and first used in the December 31, 2023, actuarial valuation. The post-retirement mortality assumption for Annuity Purchase Rates (APRs) is based on the Mortality Experience Investigation Study covering 2009 through 2011 and dated December 31, 2013. Plan assets are managed on a total return basis with an emphasis on both capital appreciation as well as the production of income 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 by best estimate ranges of expected returns for each major asset class. The long-term expected rate of return is determined by weighting the expected return for each major asset class by the respective target asset allocation percentage. The target allocation and best estimates of real rates of return for each major asset class in fiscal year 2024 are summarized in the following table: 53 Long -Term Expected Real Asset Class Target Allocation Rate of Return (Arithmetic)_ Global Equity 35.0% 6.70% Core Fixed Income 6.0% 4.70% Non -Core Fixed Income 20.0% 8.00% Other Public and Private Markets 12.0% 8.00% Real Estate 12.0% 7.60% Hedge Funds 5.0% 6.40% Private Equity 10.0% 11.60% Total 100.0% 53 CITY OF FARMERS BRANCH, TEXAS DRAFT NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 Discount rate: / 01.202E The discount rate used to measure the Total Pension Liability was 6.75%. The projection of cash flows used to determine the discount rate assumed that employee and employer contributions will be made at the rates specified in statute. Based on that assumption, the pension plan's Fiduciary Net Position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the Total Pension liability. Changes in the netpension liability: Balance at 10/1/2023 Changes for the year: Service cost Interest Change in assumptions Difference between expected and actual experience Contributions - employer Contributions - employee Net investment income Benefit payments, including refunds of employee contributions Administrative expense Other changes Netchanges Balance at 9/30/2024 Sensitivity of the net pension liability to changes in the discount rate: Increase IDecreaset Total Pension Plan Fiduciary Net Pension Liability Net Position Liability +aj ib) a: - bl $ 317,571,555 $ 270,495,837 $ 47,075,718 6,591,462 6,591,462 21,069,719 21,069,719 (2,339,029) (2,339,029) 3,558,757 3,558,757 8,534,416 (8,534,416) 2,561,923 (2,561,923) 31,266,806 (31,266,806) (17,446,591) (17,446,591) - (199,167) 199,167 (1,392) 1,392 $ 11,434,318 $ 24,715 995 $ (1.3,281,677 $ 329,005,873 $ 295,211,832 $ 33,794,041 The following presents the net pension liability (asset) of the City, calculated using the discount rate of 6.75%, as well as what the City'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 Current Single Rate 1 % Decrease 5.75% 6.75% 7.75% City's net pension liability (asset) $ 76,732,429 $ 33,794,041 $(1,688,663) Pension plan riduciary 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 at www.tmrs.cor . Pension expense and deferred outflows of resources and deferred inflows of resources related to pensions: For the year ended September 30, 2024, the City recognized pension expense of $7,676,838. CITY OF FARMERS BRANCH, TEXAS DRAFT NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 /1 0%20 2E At September 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Contributions subsequent to the measurement date Change in assumptions Differences between projected and actual investment earnings Differences between expected and actual economic experience Total Deferred Outflows Deferred Inflows of Resources of Resources $ 7,664,607 $ 1,644,955 7,286,810 4,688,623 $ 19,640,040 $ 1,644,955 The amount of $7,664,607 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, 2025. Other amounts reported as deferred outflows (inflows) of resources related to pension will be recognized in pension expense as follows: Year Ended: 2025 $ 4,073,621 2026 3,065,095 2027 5,793,429 2028 2,601,667' Total $ 10,330,478 55 CITY OF FARMERS BRANCH, TEXAS NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 DRAFT 0 0/2DQ2G 1 Accounting Standards The GASB has issued the following Statements which will become effective in future years as shown below: GASB Statement No. 101- Compensated Absences GASB 101 updates the recognition and measurement guidance for compensated absences under a unified model. It defines compensated absences and requires that liabilities be recognized for leave for which employees may receive one or more: cash payments when the leave is used for time off; other cash payments, such as payment for unused leave upon termination of employment which includes voluntary resignation or retirement; or noncash settlements, such as conversion to defined benefit postemployment benefits. GASB 101 also establishes guidance for measuring a liability for leave that has not been used, generally using an employee's pay rate as of the date of the financial statements. GASB 101 amends the existing requirement to disclose the gross increases and decreases in a liability for compensated absences to allow governments to disclose only the net change in the liability (as long as they identify it as a net change). In addition, governments are no longer required to disclose which governmental funds typically have been used to liquidate the liability for compensated absences. The City expects to first apply GASB 101 during the year ending September 30, 2025. The impact of applying the Statement has not been determined. GASB Statement No. 102 - Certain Risk Disclosures GASB 102 requires governments to disclose information about certain concentrations or constraints that could affect services provided or the ability to meet obligations as they come due. The City expects to first apply GASB 102 during the year ending September 30, 2025. The impact of applying the Statement has not been determined. GASB Statment No. 103, Financial Reporting Model Improvements (GASB 103) GASB 103 seeks to improve the financial reporting model by standardizing the presentation for various matters within the governmental financial statements. The purpose is to eliminate diversity practice and improve comparability. The City expects to first apply GASB 103 during the year ending September 30, 2026. The impact of applying the Statement has not been determined. GASB Statement No. 104, Disclosure of Certain Capital Assets (GASB 104) GASB 104 seeks to improve disclosures related to certain types of capital assets. The purpose is to provide users of government financial statements with essential information about certain types of capital assets. The City expects to first apply GASB 104 during the year ending September 30, 2026. The impact of applying this Statement has not been determined. 1 Subsequent Events In October 2024, the City issued $9,560,000 of Combination Tax and Revenue Certificates of Obligation, Series 2024 and $2,310,000 of General Obligation Bonds, Series 2024. The interest rates on the Combination Tax and Revenue Certificates of Obligation, Series 2024 are 5% and the maturity date is February 15, 2044. The interest rates on the General Obligation Bonds, Series 2024 are 5% and the maturity date is February 15, 2033. On January 27, 2025, the Office of Management and Budget (OMB) issued M 25-13, pausing all activities related to obligation or disbursement of all federal financial assistance with certain exceptions. The memo has since bee rescinded; however, ii is unclear whether future assistance could be at risk. The potential impacts of the executive orders on the City's future federal financial assistance have not been evaluated. 56 H Q D Z O aWi � v~i fn}1! XQ O y c ?Zu } W 7. LLI zLU Uj z�u m M W . IL LU aa� Nzc LL p ll LL. w p rA c }cyZ 3 LU V � FW -6 V (mwmD I' _ N i 1 m a,' E b s E m � O O N G o as 1 N o 3 ac c 7i 'ao a E E$ c c u d m 1 LL, W m c c E mE- i= c c m c v 5 Z H LU _ c c O ir N N w l0 W B m m c z F F c q- U D U m m U U z m¢ O m O � ' h N M < N � m a N � b m vi O O' O O O o C _ � tl! O N m n - � � N C_ W J LU O N J_ m w Z O aWi � v~i fn}1! XQ O y c ?Zu } W 7. LLI zLU Uj z�u m M W . IL LU aa� Nzc LL p ll LL. w p rA c }cyZ 3 LU V � FW -6 V (mwmD I' _ N i 1 E b s E m � o as 1 N o 3 ac c 7i 'ao a E E$ c c u d m 1 LL, W m c c E mE- i= c c m c v 5 Z H LU _ c c ir N Z w l0 W B m m c z F F c q- U D U m m U U z m¢ O a z i DRAFT CITY OF FARMERS BRANCH, TEXAS REQUIRED SUPPLEMENTARY INFORMATION TEXAS MUNICIPAL RETIREMENT SYSTEM SCHEDULE OF CONTRIBUTIONS LAST TEN FISCAL YEARS (UNAUDITED) /1 0/242. EXHIBIT E-2 NOTES TO SCHEDULE OF CONTRIBUTIONS VALUATION DATE: Actuarially determined contribution rates are calculated as of December 31 and Notes become effective in January, 13 months later Methods and Assumptions Used to Determine Contribution Rates: Actuarial Cost Method Entry Age Normal Amortization Method Level Percentage of Payroll Closed Remaining (5) Amortization Period Asset Valuation Method 10 Year Smoothed Market, 12% Soft Corridor (2) 2.5% Salary Increases Actuarially (6) 6.75% Experience -based tale of rates that vary by age. Last updated for the 2023 valuation pursuant to an Contributions in (3) determined Contributions as a 103% and female rates are multiplied by 105%. The rates are projected on a fully generational basis (1) relation to the Contribution Pre -retirement: PUB(10) mortality tables, with the 100% of the Public Safety table used for males contributions as a percentage of Actuarially actuarially excess (4) percentage of covered Fiscal determined determined (deficiency) Covered cov ered pay roll pay roll Year contribution contribution 2)-(1) ;.ay roll iV" i2VA) 2015 $ 4,887,161 $ 4,887,161 $ 0 $ 25,596,098 19.09% 19.09% 2016 4,859,534 4,859,534 0 26,799,133 18.13% 18.13% 2017 5,042,680 5,042,680 0 27,664,216 18.23% 18.23% 2018 5,235,027 5,235,027 0 28,294,655 18.50% 18.50% 2019 5,512,290 5,512,290 0 29,772,189 18.51% 18.51% 2020 5,596,912 5,596,912 0 29,695,237 18.85% 18.85% 2021 5,901,143 5,901,143 0 31,021,165 19.02% 19.02% 2022 6,808,330 7,328,330 520,000 34,097,741 19.97% 21.49% 2023 7,228,762 12,003,853 4,775,091 37,977,824 19.03% 31.61% 2024 7,806,538 9,378,099 1,571,561 39,144,978 19.94% 23.96% NOTES TO SCHEDULE OF CONTRIBUTIONS VALUATION DATE: Actuarially determined contribution rates are calculated as of December 31 and Notes become effective in January, 13 months later Methods and Assumptions Used to Determine Contribution Rates: Actuarial Cost Method Entry Age Normal Amortization Method Level Percentage of Payroll Closed Remaining 22 Years Amortization Period Asset Valuation Method 10 Year Smoothed Market, 12% Soft Corridor Corridor Inflation 2.5% Salary Increases 3.60% to 11.85% Including Inflation Investment Rate of Return 6.75% Experience -based tale of rates that vary by age. Last updated for the 2023 valuation pursuant to an Retirement Age experience study of the period ending 2022. Post-retirement: 2019 Municipal Retirees of Texas Mortality Tables. Male rates are multiplied by 103% and female rates are multiplied by 105%. The rates are projected on a fully generational basis Mortality by the most recent Scale MP -2021 (with immediate convergence). Pre -retirement: PUB(10) mortality tables, with the 100% of the Public Safety table used for males and the 100% of the General Employee table used for females. The rates are projected on a full generational basis by the most recent Scale MP -2021 (with immediate convergence). Other Information: Notes There were no benefit changes during the most recent fiscal year. 58 DRAFT 4/ 0/20 CITY OF FARMERS BRANCH, TEXASEXHIBIT E-3 REQUIRED SUPPLEMENTARY INFORMATION RETIREE HEALTH PLAN SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS LAST TEN FISCAL YEARS (will ultimately be displayed) (UNAUDITED) Measurement Date December 31, Total OPEB liability Service Cost Interest on the total OPEB liability Change of benefit terms Difference between expected and actual experience of the total OPEB liability Changes of assumptions Benefit payments Net change in total OPEB liability Total OPEB liability • beginning Total OPEB liability • ending Covered -employee payroll Total OPEB liability as a percentage of covered -employee payroll 2023 2022 2021 2020 2019 2018 2017 $ 110,736 $ 111,763 $ 131,014 $ 120,599 $ 103,922 $ 112,523 $ 117,900 156,152 82,870 93,957 139,265 177,352 173,090 199,485 - (172,028) - 3.81% 58,138 158,578 22,259 (186,450) 21,854 (142,849) 15,272 109,686 (330,436) 38,096 25,396 449,630 (109,852) 143,553 (525,376) (471,500) 1467,935) (472,782) (481.825) (473,238) (486,880) (90,664) (620,753) (182,609) (373,972) 270,933 (440,326) (10,670) 062.924 4,683,677 4,866,286 5,240,258 4.969.325 5,409651 5,420,321 $ 3,972,260 $ 4,062,924 $ 4683677 $ 4,866,286 $ 5,240,258 $ 4.969,325 $ 5409,651 $ 10,446,418 $ 11,370,637 $ 10,176,385 $ 11,301,580 $ 13,088,231 $ 13,527,167 $ 12,668,540 38.03% 35.73% 46.02% 43.06% 40.04% 36.74% 4270% Notes to Schedule: FYE24 - The demographic assumptions were updated to reflect the 2022 TMRS Experience Study. FYE20 - The demographic assumptions were updated to reflect the 2019 TMRS Experience Study. Changes of assumptions reflect the effects of changes in the discount rate each period. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB 75 to pay related benefits. The following are the discount rates used in each period: FYE Discount Rate 2024 3.77% 2023 4.05% 2022 1.84% 2021 2.00% 2020 2.75% 2019 3.71% 2018 3.31% 2017 3.81% 59 DRAFT 41101202,r.- OTHER SUPPLEMENTARY INFORMATION 60 COMBINING FINANIDT RAFT — 11 012GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS The Special Revenue Funds are used by the City to account for the accumulation and disbursement of restricted resources. The following is a description of the City's Special Revenue Funds: Hotel/Motel - to account for receipt and allocation of the City's hotel/motel occupancy tax. Use of this tax is limited by law to the promotion of tourism. The City hotel occupancy tax rate for its twelve hotels is 70/6. Police Forfeitures - to account for proceeds from the sale of assets seized in connection with drug arrests. Revenues are restricted to law enforcement expenditures. Donations - to account for voluntary contributions for community improvement Cemetery— to account for grounds maintenance of Keenan Cemetery. Tax Increment Reinvestment Zone No. 3 — to dedicate certain tax increment revenues to the Mercer Crossing Development and apply these revenues to reduce the public improvement district assessments. MM niciflas —to account for the municipal court building security fee dedicated to courthouse security and the municipal court technology fee for the purchase of technological enhancements. Landfill Closure/Postdosure - to account for the accumulated contributions from a prior contract with Allied Waste North America, Inc. to provide resources for current and future landfill costs related to closure/postdosure. Joint Fire Training — to account for the contributions from the participating cities to pay for the operations of the Joint Fire Training facility. PEG Access Channel — to account for Public, Educational, Governmental (PEG) access channel capital support Funding source is t%of cable franchisees' gross revenue. Farmers Branch Loral Government Co L -oration — to account for activities to further the promotion, development, encouragement, and maintenance of employment, commerce, economic development and public facility development in Farmers Branch on behalf of the City. Residential Reyitaliza n Bond — to finance the City's programs for economic development for single-family residential redevelopment and revitalization in the City. CAPITAL PROJECTS FUNDS The Capital Projects Funds account for all resources used for the acquisition and/or construction of major capital facilities by the City, except those financed by the Enterprise Fund. The following is a description of the City's Capital Projects Funds: Hotel/Motel — to account for the construction and financing of historical park improvements, funded by hotel/motel tax revenues. Street Improvement Bond — to account for permanent public improvements for streets, thoroughfares, bridges, interchanges, intersections, grade separations, sidewalks and other public ways of the City, including streetscape improvements, public utility improvements, storm drainage facilities, and the acquisition of land therefore. Fire Station #2 / Landfill Bond — to account for the construction and relocation of Fire Station #2 and to construct a new scale house and maintenance facility at the Camelot Landfill. Radio S: stem Bond —to account for public radio system upgrades and improvements. Consolidated Dispatch Bond — to account for acquiring, equipping, or constructing of joint public safety dispatch, communications, and training facilities. Pike Street / Station Area Improvement Bond —to account for infrastructure construction in the City's light rail station area including sidewalks, street lighting, parking and streetscaping, and related storm drainage improvements, and acquiring rights-of-way in connection therewith. TIF District No. 2 - to account for infrastructure construction in the Old Farmers Branch tax increment financing district and is funded from developer contributions, developer advances, and property tax payments. TIF District No. 4 - to account for infrastructure in Interstate Highway 35W and Valwood Park tax increment financing district and is funded from developer contributions, developer advances, and proper property tax payments. Trails & Sidewalks Bond — to provide funds for park and open space improvements, including trails, sidewalks and nature preserves. NTECC[Emergency Equipment Bond— to account for the acquisition of fire apparatus. Branch Connection —to account for the construction and remodel of the Branch Connection Center. DRAFT L'/' 0/20 COMBINING BALANCE SHEET- SUMMARY NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2024 EXHIBIT F-1 FUND BALANCES Nonspendable Land held for resale 1,718,800 1,718,800 Total 688 Special Capital Nonmajor Revenue Project Governmental Landfill closure 1 postclosure Funds Funds Funds ASSETS 3,102,142 Purpose of grantors, trustees and donors 780,798 Cash, cash equivalents, and investments $ 13,980,376 $ 12,378,573 $ 26,358,949 Receivables (net of allowance for uncollectibles) 566,318 736,651 566,318 Accrued interest and other 115,329 102,457 217,786 Land held for resale 1,718,800 1,718,800 Prepaid items 688 11,698,976 26,41Q732 688 . Total assets $ 16,381,511 $ 12,481,030 $ 28,862,541 LIABILITIES Accounts payable $ 336,060 $ 378,719 $ 714,779 Retainage payable 4,960 277,730 282,690 Due to other funds 1,328,735 1,328,735 Deposits payable 125,605 125,605 Total liabilities 1669,755 782,054 2,451,809 DEFERRED INFLOWS OF RESOURCES Total deferred inflows of resources FUND BALANCES Nonspendable Land held for resale 1,718,800 1,718,800 Prepaid items 688 688 Restricted for Construction of capital assets 11,910,033 11,910,033 Landfill closure 1 postclosure 7,877,113 7,877,113 Promotion of tourism 3,102,142 3,102,142 Purpose of grantors, trustees and donors 780,798 780,798 Economic development 479,516 479,516 Law enforcement 736,651 736,651 Fire training operations 16,048 16,048 Assigned to Unassigned (211,057) 5211,057) Total fund balances 14,711,756 11,698,976 26,41Q732 Total liabilities, deferred inflows of resources, and fund balances $ 16,381,511 $ 12,481,030 $ 28,862,541 62 DRAFT / � 0/20' r,.,, CITY OF FARMERS BRANCH_ TEXAS EXHIBIT F -1A COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS - NONMAJOR SPECIAL REVENUE FUNDS SEPTEMBER 30, 2024 Retainage payable Due to other funds Total liabilities FUND BALANCES Nonspendable Land held for resale Prepaid items Restricted for Landfill closurelpostclosure Promotion of tourism Purpose of grantors, trustees, and donors Economic development Law enforcement Fire training operations Total fund balances Total liabilities, deferred inflows of resources, and fund balances 1,328,735 1,497,947 99,831 7,600 688 3,102,142 501,256 14,286 21,809 4,773 396,977 279,940 456,711 3,102,830 279,940 501,256_ 14,286 396,977 456711 _ x.777 L-379 771 $ 508,856 $ 14.286 $ 418,786 L ----461.L4-84- 63 461,484_ 63 Nonmaror Special Revenue Funds Tax Increment Municipal Hotel/ Police Reinvestment Court Motel Forfeitures Donations Cemetery Zone No. 3 Fees ASSETS Cash, cash equivalents, and investments $ 4,236,901 $ 376,903 $ 498,908 $ 14,171 $ 173,954 $ 458,567 Receivables (net of allowance for uncollectibles) 325,537 231,349 Accrued interest and other 37,651 2,868 9,948 115 13,483 2,917 Land held for resale Prepaid items 688 . Total assets $ 4 600 777 $ 379,771 $ 508,856 $ 14,286 $ 418,786 $ 461,484 LIABILITIES Accounts payable $ 169,212 $ 99,831 $ 7,600 $ $ 21,809 $ 4,773 Retainage payable Due to other funds Total liabilities FUND BALANCES Nonspendable Land held for resale Prepaid items Restricted for Landfill closurelpostclosure Promotion of tourism Purpose of grantors, trustees, and donors Economic development Law enforcement Fire training operations Total fund balances Total liabilities, deferred inflows of resources, and fund balances 1,328,735 1,497,947 99,831 7,600 688 3,102,142 501,256 14,286 21,809 4,773 396,977 279,940 456,711 3,102,830 279,940 501,256_ 14,286 396,977 456711 _ x.777 L-379 771 $ 508,856 $ 14.286 $ 418,786 L ----461.L4-84- 63 461,484_ 63 DRAFT Nonmajor Special Revenue Funds $ 27,474 $ 5,361 $ 4,960 32,434 5,361 _ $ $ $ 336,060 4,960 1,328,735 1,669 755 1,718,800 1,718,800 688 7,877,113 7,877,113 3,102,142 224,573 40,683 780,798 82,539 479,516 736,651 16,048 _ 16048_ 7,877,113 16,048 224,573 40,683 1,801,339 14,711,756 $ 7,909,547 $ 21,409 $_224 573 $ 40,683 $ 1,801,339 $ 16,381,511 64 / 0 / 2 0 E Total Joint PEG Farmers Branch Residential Nonmajor Landfill Closure/ Fire Access Local Gov't Revitalization Special Revenue Postclosure Training Channel Corporation Bond Funds $ 7,864,969 $ 21,161 $ 212,308 $ 40,683 $ 81,851 $ 13,980,376 9,432 566,318 44,578 248 2,833 688 115,329 1,718,800 1,718,800 688 $ 7,909,547 $ 21,409 X573 $_40 663 $ 1,801,339 $ 16,381,511 $ 27,474 $ 5,361 $ 4,960 32,434 5,361 _ $ $ $ 336,060 4,960 1,328,735 1,669 755 1,718,800 1,718,800 688 7,877,113 7,877,113 3,102,142 224,573 40,683 780,798 82,539 479,516 736,651 16,048 _ 16048_ 7,877,113 16,048 224,573 40,683 1,801,339 14,711,756 $ 7,909,547 $ 21,409 $_224 573 $ 40,683 $ 1,801,339 $ 16,381,511 64 / 0 / 2 0 E CITY OF FARMERS BRANCH TEXAS COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS - NONMAJOR CAPITAL PROJECTS FUNDS SEPTEMBER 30, 2024 ASSETS Cash, cash equivalents, and investments Accrued interest and other Total assets LIABILITIES Accounts payable Retainage payable Deposits payable Total liabilities DEFERRED INFLOWS OF RESOURCES Total deferred inflows of resources FUND BALANCES Restricted for Construction of capital assets Assigned to Unassigned Total fund balances Total liabilities, deferred inflows of resources, and fund balances DRAFT "1101202E.- CITY /10/20?_� EXHIBIT F-1 B Nonmaior Capital Protects Fund 1 27,253 197,767 675 14,197 Pike Streel/ Fire Station #2/ Radio 14,197 Station Area Hotel/ Street Improvement Landfill System Consolidated Improvement Motel Bond Bond Bond Dispatch Bond Bond $ 233,557 $ 129,965 $ 196,125 $ 45,353 $ 139,802 $ 3,027,280 (1,066) 2,431 1,642 29,475 $ 232,491 $ 132,396 X67 $ 45,353 L139-802 -$----3-,0-5-6,-75-5 $ 3,030 $ 100,007 $ $ 44,678 $ $ 229,460 5,136 32,581 125,605 �232 490 105143 _ _ _ 44,678 125,605 _ 32,581 1 27,253 197,767 675 14,197 3,024,174 197,767 675 14,197 3,024,174 1 27,253 $ 232,491 $ 132,396 $ 197,767 $ 45,353 $_1 39802 $ 056 65 DRAFT 41101209G $ 22,635 $ $ 7,865 $ $ 200,504 $ 378,719 10,553 277,730 125,605 22,635 7865 211,057 782,054 3,643,331 998,743 4,003,892 11,910,033 (211,057) (211,057) 3,643,331 998,743 4,003,892 (211,057) 11,698,976 $ 3,665,966 $ 998,743 $ 4,011,757 $ - $ - $ 12,481,030 66 Nomajor Capital Projects Fund Total Trails & Nonmajor TIF District Sidewalks NTECC/Emergency Branch Connection Capital Projects No. 2 TIF District No 4 Bond Equipment Bond Bond Funds $ 3,635,990 $ 992,857 $ 3,977,644 $ $ $ 12,378,573 29,976 5,886 34,113 102,457 $ 3,665,966 $ 998,743 $ 4,011,757 $ $ - $ 12,481,030 $ 22,635 $ $ 7,865 $ $ 200,504 $ 378,719 10,553 277,730 125,605 22,635 7865 211,057 782,054 3,643,331 998,743 4,003,892 11,910,033 (211,057) (211,057) 3,643,331 998,743 4,003,892 (211,057) 11,698,976 $ 3,665,966 $ 998,743 $ 4,011,757 $ - $ - $ 12,481,030 66 DRAFT CITY OF FARMERS BRANCH, TEXAS / 0 / 0 2c EXHIBIT F-2 COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - SUMMARY NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 Total Special Capital Nonmajor Revenue Projects Governmental Funds Funds Funds REVENUES Hotel/motel taxes $ 3,515,051 $ $ 3,515,051 Franchise taxes 41,067 41,067 Tax increment financing 1,246,461 764,993 2,011,454 Charges for services 137,305 137,305 Fines and forfeitures 201,092 201,092 Investment income 836,945 721,925 1,558,870 Intergovernmental 300,469 300,469 Miscellaneous 196.191 196,191 Total revenues 6.474.581 1486918 7,961,499 EXPENDITURES Current General government 1,339,022 1,339,022 Public safety 542,800 542,800 Public works 162,139 162,139 Culture and recreation 2,323,569 2,323,569 Debt Service Capital outlay _ 151,327 3,574,732 3 726 059 Total expenditures 4,518,857 _ 3,574.732 8,093,589 Excess (deficiency) of revenues over (under) expenditures 1,955,724 (2,087,814) 132.090'_ OTHER FINANCING SOURCES (USES) Transfers in 2,800,000 760,378 3,560,378 Transfers out (2,685,215) (2,685,215) Sale of general capital assets 35,408 35,408 Total other financing sources (uses) 150,193 760,378 910,571 Net change in fund balances 2,105,917 (1,327,436) 778,481 Fundbalances- beginning 12,605,839 13,026,412 25,632,251 . Fundbalances- ending $ 14,711,756 $ 11,698,976 $ 26,410,732_ 67 DRA CITYOF FARMERS BRANCH COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS - NONMAJOR SPECIAL REVENUE FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 T /1 01202%r"- EXHIBIT F -2A Nonmaior Special Revenue Funds Tax Increment Hotel/ Reinvestment Zone Municipal Court Motel Police Forfeitures Donations Cemetery No 3 Fees REVENUES Hotellmotel taxes $ 3,515,051 $ $ $ $ $ Franchise taxes Tax increment financing 1,246,461 Charges for services 137,305 Fines and forfeitures 53,955 147,137 Investment income 289,632 20,210 70,094 807 95,001 20,550 Intergovernmental 198,462 Miscellaneous 1,133 115,894 1,200 77,964 Total revenues 3,943,121 74,165 384,450 _ 2007 1,419,426 167,687 EXPENDITURES General government 6,999 1,318,499 10,100 Public safety 98,494 285,124 62,874 Public works Culture and recreation 2,311,328 12,241 Capital outlay Total expenditures 2,311,328 98,494 304,364 1,318,499 72,974 Excess (deficiency) of revenues over (under) expenditures 1,631,793 [24.329) 80,086 2007 100,927 94,713 OTHER FINANCING SOURCES (USES) Transfers in Transfers out (1,196,715) (1,488,500) Sale of general capital assets Total other financing sources (uses) (1,196,715) 0,488,5001 Net change in fund balances 435,078 (24,329) (1,408,414) 2,007 100,927 94,713 Fundbalances- beginning 2,667,752 304,269 1,909,670 _ 12,279 296,050 361,998 Fundbalances-ending $ 3,102,830 $ 279,940 $ 501,256 L__14 286 $ 396,977 $ 456,711 68 DRAT 4/ 0120,2,11. Nonmajor Special Revenue Funds _ 3,424 96,308 162,139 151,327 162,139 96,308 154,751 151,954 7,446 (93720)_ 1,339,022 542,800 162,139 2,323,569 151,327 4,518,857 Z-4,847 1 955,724 2,800,000 2,800,000 (2,685,215) 35408 _ 35,408 2,835,408 150,193 2,987,362 7,446 (93,720) 4,847 2,105,917 4,889751 8,602 X93 40,683 1,796,492 12605,839 $_7 877113 $ 16,048 $ 224,573 $ 40,683 $ 1,801,339 $ 14,711,756 69 Total Farmers Branch Nonmajor Landfill Closure/ PEG Access Local Gov't Residential Special Revenue Postclosure Joint Fire Training Channel Corporation Revitalization Bond Funds $ $ $ $ $ $ 3,515,051 41,067 41,067 1,246,461 137,305 201,092 314,093 1,747 19,964 4,847 836,945 102,007 300,469 196,191 314,093 103,754 61,031 4,647 6474581 3,424 96,308 162,139 151,327 162,139 96,308 154,751 151,954 7,446 (93720)_ 1,339,022 542,800 162,139 2,323,569 151,327 4,518,857 Z-4,847 1 955,724 2,800,000 2,800,000 (2,685,215) 35408 _ 35,408 2,835,408 150,193 2,987,362 7,446 (93,720) 4,847 2,105,917 4,889751 8,602 X93 40,683 1,796,492 12605,839 $_7 877113 $ 16,048 $ 224,573 $ 40,683 $ 1,801,339 $ 14,711,756 69 DRAFT 2/' 0/20 � CITY OF FARMERS BRANCH. TEXAS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS- NONMAJOR CAPITAL PROJECTS FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 EXHIBIT F -2B 70 Nomn 'or Can ilnl P2 .Ie Funds Pike Sheet I R. Station APV Radio Consolidalad Slahon Area Holey Landfi@ System Dispatch Improvement Motel Street Impovament Bond Bond Bond Bond Band REVENUES Tax increment financing $ $ $ $ $ $ Investment income (7,509) X35 11,571 1 207,679 Total revenues (7,509) 17,135 11,571 1 - 207,679 EXPENDITURES Current Debt service Capital outlay 1,904,248 390,369 709,822 Total wWdllures X46 390,369 - 709,822 Excess (deficiency) of revenues over(under)expenditures (1,911.70 X373,234) 11,571 1 (502,143) OTHER FINANCING SOURCES (USES) Transfers in 585.715 Total other finendng sources (uses) 585,715 - - Net change in fund balances (1,326,042) (373,234) 11,571 1 (502,143) Fund balances - beginning 1,326,043 400,487 186,196 674 14,197 3,526,317 Fundbalances- ending $ 1 $ 27253 $ 197,767 $ 675 $ 14,197 $ 3,024,174 70 DRAFT "/10/20?E N.—j., Cmital Praieots Funds 78,654 106,019 174,663 211,057 3,574,732 78,554 106,019 174,663 211.057 3,574,732 339,387 599,738 134,343 (174,663) (211,057) (2,087,814) 174,663 760,378 174,663 760,378 339,387 599,738 134,343 - (211,057) (1,327,436) 3,303.944 399,005 3,869,549 13,026,412 _ �364� $ 998743 $003,892 $ $ 211,05 $ 11,698,976 71 Total Trails 8 Nowajor TIF Distdot Sidewalks NTECCIEm.W y Capital Projaote No.2 TIF District No Bond Equipment Bond Brarwh Connection Bond Funds $ 206,730 $ 558,263 $ $ $ $ 764,993 211,211 41,475 240,362 _ 721,925 417,941 599,738 240,362 1,486 918 78,654 106,019 174,663 211,057 3,574,732 78,554 106,019 174,663 211.057 3,574,732 339,387 599,738 134,343 (174,663) (211,057) (2,087,814) 174,663 760,378 174,663 760,378 339,387 599,738 134,343 - (211,057) (1,327,436) 3,303.944 399,005 3,869,549 13,026,412 _ �364� $ 998743 $003,892 $ $ 211,05 $ 11,698,976 71 DRAFT SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Nonmajor Special Revenue Funds and Debt Service Fund / 01209.,r-. DRAFT 41101202,r.- CITY OF FARMERS BRANCH TEXAS EXHIBIT G1A SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL HOTELIMOTEL FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 73 Actual Revised Budget Bud:et Basis Variance REVENUES Hotellmoteltaxes $ 3,136,000 $ 3,515,051 $ 379,051 Charges for services 127,500 137,305 9,805 Investment income 185,300 289,632 104,332 Miscellaneous 1,100 1,133 33 Total revenues 3,449,900 3,943,121 493,221 EXPENDITURES Culture and recreation 3,252,803 2,311,328 941,475 Total expenditures 3,252,803 2-311,328 941,475 Excess (deficiency) of revenues over (under)expendtiures 197,097 1,631,793 1,434,696 OTHER FINANCING SOURCES (USES) Transfers out (611,000) (1,196,715) (565,715) Total other financing sources (uses) 1611,0001 1,196,71 (585,715} Net change in fund balances (413,903) 435,078 848,981 Fundbalances- beginning 2,667,752 2,667,752 Fundbalances- ending $ 2,253,849 $ _3,102830 $ 848,981 73 DRAFT z'/ 0/202%c. CITY OF FARMERS BRANCH TEXAS EXHIBIT G-1 B SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL POLICE FORFEITURES FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 REVENUES Fines and forfeitures Investment income Total revenues EXPENDITURES Public safety Total expenditures Net change in fund balances Fund balances - beginning Fund balances -ending Actual Revised Budget B et Basis Variance $ 53,900 $ 53,955 $ 55 16,700 20,210 3,510 70,600 74,165 3.565 145,500 98,494 47.006 145,500 98,494 47.006 (74,900) (24,329) 50,571 304,269 304,269 $ 229,369 $ 279,940 $ 50,571 74 DRAFT 410`10/20 E CITY OF FARMERS BRANCH, TEXAS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL DONATIONS FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 EXHIBIT G-1 C 75 Actual Revised Budget Bud,•et Basis Variance REVENUES Investment income $ 73,900 $ 70,094 $ (3,806) Intergovernmental 198,500 198,462 (38) Miscellaneous 114 616 115,894 1,278 Total revenues 387,016 384,450 _ (2.566) EXPENDITURES General government 21,000 6,999 14,001 Public safety 290,382 285,124 5,258 Cufture and recreation igloo 12.241 5,859 Total expenditures 329,482 304,364 25,118 Excess (deficiency) of revenues over (under) expendtiures 57,534 80,086 22,552 OTHER FINANCING SOURCES (USES) Transfers out (1,500,000) (1,488,5001 11,500 Total other financing sources (uses) 11,500.000) (1,488,500 11.500 Net change in fund balances (1,442,466) (1,408,414) 34,052 Fund balances - beginning 1,909 670 1,909,670 Fundbalances- ending $ 467,204 $ 501,256 $ 34,052 75 DRAFT 4/10/20 E CITY OF FARMERS BRANCH, TEXAS EXHIBIT G-1 D SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL CEMETERY FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30.2024 REVENUES Investment income Miscellaneous Total revenues Net change in fund balances Fund balances - beginning Fund balances -ending Actual RevisedBudget Budget Basis Variance $ 600 $ 807 $ 207 1,200 1,200 1,800 2,007 207 1,600 2,007 207 12,279 12,279 $ 14,079 $ 14,286 $ L07- 76 DRAFT CITY OF FARMERS BRANCH, TEXAS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL TAX INCREMENT REINVESTMENT ZONE NO.3 FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 REVENUES Tax increment financing Investment income Miscellaneous Total revenues EXPENDITURES General government Total expenditures Net change in fund balances Fund balances - beginning Fund balances - ending / 012O9E EXHIBIT G -1E 77 Actual RevisedBudget Budget Basis Variance $ 1,246,500 $ 1,246,461 $ (39) 40,200 95,001 54,801 77,964 77,,964 _ 1,286,700 1,419 426 132,726 1 321 500 1,318499 3,001 1,321,500 1,318,499 3.001 (34,800) 100,927 135,727 296 050 296,050 $ 261,250 $ 396,977 $ 135,727 77 DRA T Z/ 01202r- CITY OF FARMERS BRANCH, TEXAS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL MUNICIPAL COURT FEES FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 REVENUES Fines and forfeitures Investment income Total revenues EXPENDITURES General government Public safety Total expenditures Net change in fund balances Fund balances - beginning Fund balances - ending EXHIBIT G -1F 78 Actual Revised Budget Budget Basis Variance $ 138,600 $ 147,137 $ 8,537 13,900 20,550 6,650 152 500 167,687 15,187 10,100 10,100 63,000 62,874 126 73,100 72,974 126 79,400 94,713 15,313 361,998 361,998 $ 441,398 $ 456,711 $ 15.313 78 DRAFT 41101202,r..- CITY /10/2O2E CITY OF FARMERS BRANCH. TEXAS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL LANDFILL CLOSUREIPOSTCLOSURE FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 REVENUES Investment income Total revenues EXPENDITURES Public works Total expenditures Excess (deficiency) of revenues over (under) expendbures OTHER FINANCING SOURCES (USES) Transfers in Sale of general capital assets Total other financing sources (uses) Net change in fund balances Fund balances - beginning Fund balances - ending EXHIBIT G1 -G 79 Actual RevisedBudget Budoet Basis Variance $ 226,100 $ 314,093 $ 87,993 226,100 314.093 87,993 1,370,781 162,139_ 1,208,642 1,370,781 162,139 1,208,642 1,144,681 151,954 1,296,635 2,800,000 2,800,000 - 35,400 35,408 8 2,835,400 2,835,408 8 1,690,719 2,987,362 1,296,643 4,889,751 4,889,751 $ 6.580.470 $ 7,877,113 $ 1,296,643 79 DRAFT CITY OF FARMERS BRANCH.._ TEXAS / 0/202,r,.- EXHIBIT G-1 H SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL JOINT FIRE TRAINING FUND FORTHE FISCAL YEAR ENDED SEPTEMBER 30, 2024 REVENUES Investment income Intergovernmental Total revenues EXPENDITURES Public safety Total expenditures Net change in fund balances Fund balances- beginning Fund balances - ending Actual Revised Budget Budnet Basis Variance $ 800 $ 1,747 $ 947 102,000 102,007 7 102,800 103,754 954 107,800 96308 11,492 107,800 96,308 11,492 (5,000) 7,446 12,446 8,602 8,602 $ 3 602 $ 16 048 $ 12,446 80 DRAFT 4/10/20 SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL PEG ACCESS CHANNEL FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 REVENUES Franchise taxes Investment income Total revenues EXPENDITURES General government Capital outlay Total expenditures Net change in fund balances Fund balances - beginning Fund balances - ending EXHIBIT G -1I 81 G Actual RevisedBudget Budget Basis Variance $ 42,600 $ 41,067 $ (1,533) 15,000 19,964 4,964 57,600 61,031 3,431 372,800 3,424 369,376 151,327 1151,3271 372,800 154,751 218,049 (315,200) (93,720) 221,480 318,293 318,293 $ 3093 $ 224,573 $ 221,480 81 G DRAFT 411012O2E CITY OF FARMERS BRANCH, TEXAS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL RESIDENTIAL REVITALIZATION BOND FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 REVENUES Invesbnent income Total revenues EXPENDITURES General government Total expenditures Net change in fund balances Fund balances - beginning Fund balances - ending EXHIBIT G -1J Actual RevisedBudget Budget Basis Variance $ 4,300 $ 4,847 $ 547 4,300 _ 4,847 547 46,757 46,757 46,757 46,757 (42,457) 4,647 47,304 1,796,492 1,796,492 $ 1,754.035 $ 1,801,339 $ 47,304 82 DRAFT 4/10/202,r.- CITY OF FARMERS BRANCH, TEXAS EXHIBIT G2 SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL DEBT SERVICE FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 83 Actual RevisedBudget Budget Basis Variance REVENUES Properly taxes $ 4,442,600 $ 4,450,880 $ 8,280 Investment income 2,239,900 462,113 (1,777,787) Total revenues 6,682,500 4,912,993 (1,769,507) EXPENDITURES Principal retirement 4,145,000 4,145,000 - Interest and fiscal agent charges 2501,700 2,499,059 2,641 Total expenditures 6,646,700 6,644,059 2,641 Net Change in Fund Balances 35,800 (1,731,066) (1,766,866) Fundbalances-beginning 287,803 287,803 Fund balances - ending $ 323 603 $ (1443,263) L 766,866L 83 FBI Z Mil W COMBINING FINANCIAL STATEMENTS INTERNAL SERVICE FUNDS / 01202,r.- The Internal Service Funds account for the financing services provided by one department to other departments of the City on a cost reimbursement basis. The following is a description of the City's Internal Service Funds: Fleet & Facilities Man-wement Fund - to account for materials and supplies provided exclusively to other funds and departments of the City. Workers' Compensation Fund - to account for the City's workers' compensation self-insurance program. Health Claims Fund — to account for the City's group health self-insurance program for employees, retirees, and their immediate families. CITY OF FARMERS BRANCH TEXAS COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS SEPTEMBER 30, 2024 ASSETS Current assets: Cash, cash equivalents, and investments Receivables (net of allowance for uncollectibles) Inventories Prepaid items Deposits Total current assets Noncurrent assets Capital and lease assets Nondepreciable Depreciable, net of accumulated depreciation/amortization Total noncurrent assets Total assets DEFERRED OUTFLOWS OF RESOURCES Deferred outflows from pension Deferred outflows from OPEB Total deferred outflows of resources LIABILITIES Current liabilities Accounts payable and other accrued liabilities Compensated absences Total OPEB liability Current Claims payable Total current liabilities Noncurrent liabilities Claims payable long term Net pension liability Total OPEB liability Total noncurrent liabilities Total liabilities DEFERRED INFLOWS OF RESOURCES Deferred inflows from pension Deferred inflows from OPEB Total deferred inflows of resources NET POSITION Net investment in capital assets Unrestricted Total net position DRAFT 4/10/200- E EXHIBIT H-1 Fleet & Facilities Workers' Management Compensation Health Claims Total $ 1,892,627 $ 1,450,663 $ 2,066,928 $ 5,410,218 11,334 32,005 43,339 51,973 51,973 4,813 4,813 35,000 _ 35,000 1949413 1,496,997 2,098,933 5,545,343 8,170 8,170 7,092,224 7,092,224 7,100 354 7100 394 9,049,807 1,496,997 2,098933 12,645,737_ 530,281 530,281 - - 32.835 32,835 563116 - 563,116 532,965 32,479 73,392 638,836 29,180 29,180 24,414 24,414 158,311 564,520 722_,831 _ 586,559 190 790 637,912 1,415, 261 110,013 110,013 954,720 954,720 171,140 _ 171,140 1,125,860 110,013 1,235,873 1312,419 300,803 637,912 2,651.134 44,414 44,414 8,822 8.822 53,236 - 53,236 7,100,394 7,100,394 746.874 1,196,194 1,461,021 3404.089 $ 7,847268 $ 1,196,194 $ 1,461,021 $ 10,50403_ 85 DRAFT "/10/209E CITY OF FARMERS BRANCH, TEXAS EXHIBIT H-2 COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION INTERNAL SERVICE FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 86 Fleet & Facilities Workers' Management Cowensation . Health Claims Total Operating Revenues Charges for services $ 5,431,142 $ $ $ 5,431,142 Contributions and miscellaneous 544,457 _ 4,590139 5,134,596 Total operating revenues 5,431 142 544,457 4,590,139 10,565,738 Operating Expenses Personal services 894,882 894,882 Materials and supplies 2,454,441 2,454,441 Maintenance and utilities 2,346,897 2,346,897 Insurance claims and expenses 303,212 5,106,625 5,409,837 Depreciation 236,182 236,182 Total operating expenses 5,932,402 303,212 5,106,625 11,342,239 Operating Income (Loss) 1501 260! 241,245 (516,486) (776,501; Transfers in - 376 800 376,800 Change in net position (501,260) 241,245 (139,686) (399,701) Net Position, Beginning of Year 8,348,528 954_949 1,600,707 10,904,184 Net Position, End of Year $ 7,847,268 $ 1,196,194 $ 1,461,021 $ 10 504,483 86 CITY OF FARMERS BRANCH TEXAS COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 CASH FLOWS FROM OPERATING ACTIVITIES Receipts from interfund services provided Payments to suppliers Payments to employees Payments for claims Net cash provided by (used for) operating activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers in from other funds Net cash provided by noncapiital financing activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets Net cash used for capital and related financing activities Net increase (decrease) in cash and cash equivalents Cash and rash equivalents - beginning of year Cash and cash equivalents - and of year Reconciliation of operating income Qoss) to net cash provided by (used for) operating activities: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities Depreciation (Increase)/Decrease in Receivables Inventories Prepaid items Deferred outflows of resources - pension Deferred outflows of resources - OPEB Increase/(Decrease)in Accounts payable and accrued in accrued liabilities Claims payable Net Pension liability OPEB liability Deferred inflows of resources - pension Deferred inflows of resources - OPEB Compensated absences Net cash provided by (used for) operating activities DRAFT 4/ O/2O2E EXHIBIT H-3 Fleet & Facilities Workers' Health Mananement Compensation Claims Total $ 5,431,142 $ 544,589 $ 4,595,517 10,571,248 (4,637,024) - - (4,637,024) (961,731) (961,731) X371,555) (5,050 034) (5,421,589) (167613 173,034 (454,517) 1449,096) 376,800 376,800 376,800 376,800 !2,500' (2,500) (2,500) - (2,500) (170,113) 173,034 (77,717) (74,796) 2,062,740 1,277,629 2,144,645 5,485,014 $ 1,892,627 $ 1,450,663 $ 2,066,928 $_ 5,410 218 $ (501,260) $ 241,245 $ (516,486) $ (776,501) 236,182 236,182 87 132 5,378 5,510 (23,584) - - (23,584) 187 - 187 273,248 273,248 (740) - (740) 194,030 (45,436) 256 148,850 - (22,907) 56,335 33,428 (358,605) - (358,605) (4,532) (4,532) 39,423 39,423 (7,383) (7,383) X14 579 (14,579) $ (167,613) $ 173,034 X517 449,096 87 DRAFT 4/10/20 STATISTICAL SECTION (Unaudited) The City of Farmers Branch's annual comprehensive 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 government's overall financial health. Page Financial Trends These schedules contain trend information to help the reader understand how 89-96 the government's financial performance and well-being have changed over time. Revenue Capacity These schedules contain information to help the reader assess the government's most 97-102 significant local revenue source, the property tax. Debt Capacity These schedules present information to help the reader assess the affordability of the 103-105 government's current levels of outstanding debt and the government's ability to issue additional debt in the future. Demographic & Economic Indicators These schedules offer demographic and economic indicators to help the reader 106-107 understand the environment within which the government's financial activities take place. Operating Information These schedules contain service and infrastructure data to help the reader understand 108-113 how the information in the government's financial report relates to the services the government provides and the activities it performs. Other Information This schedule offers additional analysis regarding rapidly growing expenses or areas of 114 financial concern that are of interest to the users of the financial statements. Sources: Unless otherwise noted, the information in these schedules is derived from the annual comprehensive financial reports for the relevant year. 88 CITY OF FARMERS BRANCH TEXAS NET POSITION BY COMPONENT LAST TEN FISCAL YEARS (accrual basis of accounting) (UNAUDITED; DRAFT Fiscal Year / 01202,r-. 2015(l) 2016 2017 2018 (2) 2019 Governmental activities: $ 141,034,008 $ 140,026,406 $ 142,756,765 $ 155,984,388 $ 171,051,616 Restricted 6,147,754 7,152,723 5,347,455 Net investment in capital assets $ 98,590,058 $ 98,496,787 $ 102,598,166 $ 111,614,735 $ 120,256,477 Restricted 136,320,346 $ 6,147,754 7,152,723 5,347,455 5,004,542 8,793,762 Unrestricted 31,206,669 32,114,251 (24,589,681) 23,365,364 (20,684,259; Total governmental activities net position $ 73,531,143 $ 73,535,259 $ 83,355,940 $ 93,253,913 $ 108,365,980 Business -type activities: Net investment in capital assets $ 42,443,950 $ 41,529,619 $ 40,158,599 $ 44,369,653 $ 50,795,139 Unrestricted 9,076,311 10,471,923 12,805,807 15,252,063 18,940,131 Total business -type activities net position $ 51,520,261 $ 52,001,542 $ 52,964,406 $ 59,621,716 $ 69,735,270 Primary government Net investment in capital assets $ 141,034,008 $ 140,026,406 $ 142,756,765 $ 155,984,388 $ 171,051,616 Restricted 6,147,754 7,152,723 5,347,455 5,004,542 8,793,762 Unrestricted 122,130,358) 21,642,328! 11,783,874; ,8,113,3011 (1,744,128r Total governmental activities net position $ 125,051,404 $ 125,536,801 $ 136,320,346 $ 152,875,629 $ 178,101.250 Notes: (1) The fiscal year 2015 governmental activities were restated with implementation of GASB Statements 68 & 71 to record a beginning net pension liability and deferred outflow of resources for contributions made between the measurement date and fiscal year end. (2The fiscal year 2018 governmental activities were restated with implementation of GASB Statement 75 to record a beginning net OPEB liability and deferred outflow of resources for contributions made between the measurement date and fiscal year end. 89 DRAT 4/' 0/20 E TABLE 1 Fiscal Year 2020 2021 2022 2023 2024 $ 140,767,184 $ 148,809,910 $ 142,607,256 $ 150,702,636 $ 166,817,200 9,407,269 13,515,575 10,194,325 13,178,193 11,412,361 ;11,806,042; f5,539,781:i 23,156,960 30,534,514 44,099,132 $ 138,368,411 $ 156,785,704 $ 175,958,541 $ 194,415,343 $ 222,328,693 $ 52,383,379 $ 54,928,229 $ 62,163,819 $ 71,461,488 $ 76,765,889 18,701,549 23,584,767 26,181,830 25,823,592 29,184,301 $ 71,084,928 $ 78,512,996 $ 88,345,649 $ 97,285,080 $ 105,950,190 $ 193,150,563 $ 203,738,139 $ 204,771,075 $ 222,164,124 $ 243,583,089 9,407,269 13,515,575 10,194,325 13,178,193 11,412,361 6,895,507 18,044,986 49,338,790 56,358,106 73,283,433 $ 209,453,339 235,298,700 $ 264,304,190 $ 291,700,423 $ 328,278,883 90 DRAFT 4/ 0/20 %, CITY OF FARMERS BRANCH TEXAS CHANGES IN NET POSITION LAST TEN FISCAL YEARS (accrual basis of accounting) .UNA Notes: (1) The fiscal year 2015 governmental activities were restated with implementation of GASB 68 8 71 to record a beginning net pension liability and deferred outflow of resources for contributions made between the measurement date and fiscal year end. (2) The fiscal year 2018 governmental activities were restated with implementation of GASB 75 to record a beginning net OPEB liability and deferred outflow of resources for contributions made between the measurement date and fiscal year end. 91 Fiscal Year 2015(l) 2016 2017 2018 (2) 2019 2020 Expenses Governmental activities: General government $ 12,623,901 $ 14,578,536 $ 16,573,789 $ 16,174,829 $ 19,575,431 $ 21,181,076 Public safety 22,025,873 25,223,791 26,982,151 25,966,603 29,155,722 29,902,691 Public works 9,414,374 9,262,380 304,447 12,433,845 13,841,348 12,899,719 Culture and recreation 12,588,417 14,084,036 14,415,728 13,864,483 15,349,830 14,243,692 Principal retirement Interest on long term debt 2,344,088 2,359,900 2,217,026 2,812,608 3,474,315 1,823,611 Unallocated depreciation _ 126,464 273,962 277,305 X867 246,659 185,799 Total governmental activities expenses 59,123,117 65,782,605 60.770.446 71,525,235 81 643,305 80,236,588 Business -type activities: Water and sewer 13,095,850 15,187,138 16,086,557 17,132,596 16,513,832 16,026,496 Stormwater utility 570.356 274,895 647,624 284,185 1,509,879 1,693,104 Total busines-type activities expenses 13,666,206 15,462 033 16,734,181 17,416,781 18,023,711 17,719,600_ Total primarygovemmentexpenses $ 72789.323 $81.244.638 $ 77,504,627 $ 88.942.016 $ 99.667016 $ 97,956,188 Program Revenues Governmental activities: Charges for services Public safety $ 4,441,054 $ 4,694,946 $ 4,734,932 $ 4,254,309 $ 4,659,728 $ 3,453,793 Public works 2,287,633 2,481,706 2,651,878 3,342,887 6,672,289 5,658,875 Other 3,346,842 2,952,599 3,581,692 6,900,369 5,615,232 4,002,289 Operating grants and contributions 335,647 349,473 600,602 719,367 516,444 2,177,925 Capital grants and contributions 401,271 25_3,844 560,197 6,471,947 10,004 978 5 920 245 Total governmental activities program revenues 10,812 447 10,732,568 12,129,301 21.688 879 27,468,671 21,213,127 Business -type activities: Charges for services 17,746,563 20,083,136 21,271,417 25,155,472 25,734,892 28,029,705 Capital grants and contributions 3,800 3,368,829 4,365,188 2,716,505 Total business -type activities program revenues 17.750 363 20,083,136 21,271,417 28,524 301 30,100.080 30,746,210 Total primary government program revenues $ 28562810 $ 30,815,704 $ 33,400,718 $ 50,213,180 $ 57.568.751 $ 51,959,337 Not(ExpenseyRevenue Governmental activities $ (48,310,670) $ (55,050,037) $ (48,641,145) $ (49,836,356) $ (54,174,634) $ (59,023,461) Business -type activities 4,084,157 4.621,103 4,537,236 11.107,520 12076.369 13,026.610 Total primary government net expense $[44,226,5131 $ (50,428,934) $ {44,103.909) $ [38.728,8361 $ 142,098,2651 $ 145,996,8511 General Revenues and Other Changes in Net Position Governmental activities: Taxes Property taxes, levied forgeneral purposes $ 20,727,595 $ 22,191,443 $ 24,509,410 $ 25,617,820 $ 27,431,177 $ 30,636,546 Property taxes, levied for debt service 3,903,953 3,926,612 4,291,764 4,309,918 4,584,944 4,443,207 Sales and use taxes 13,363,544 13,639,841 13,936,336 14,618,441 17,410,323 17,164,707 Othertaxes 8,508,637 9,457,598 10,600,730 12,032,639 14,617,755 10,181,063 Investment income 1,591,991 1,664,659 1,447,475 1,787,154 2,935,658 2,393,143 Gain on extinguishment of debt 9,979,973 Gain on sale of capital assets/miscellaneous 124,938 59,927 17,136 35,918 2,280,136 Grants not restricted to a specific purpose Transfers 3,469,420 4,174,000 3,616,184 4227,900 2,270,926 11,947,117 Total governmental activities 51,690,078 55,054,153 58,461 826 62,611,008 69,286,701 89,025,892 Business -type activities: Investment income 21,560 34,178 41,812 103,609 308,111 270,165 Gain on sale of capital assets/miscellaneous Transfers �3,4694120) (4,174,0001 t3,616,184) t4,227,9M _ (2.270.926? ;11,947,1117 Total business -type activities ;3,447,860] 14,139,822) (3,574,372) (4,124,291) (1,962.815} :11.676952; Total primary government $ 48,242,218 $ 50 914 231 $ 54,887.454 ,$ 58,486 717 $ 67,323,886 $ 77,348,940 Change in Net Position Governmental activities $ 3,379,408 $ 4,116 $ 9,820,681 $ 12,774,652 $ 15,112,067 $ 30,002,431 Business -type activities 636,297 481,281 962,864 6 983 229 10,113,554 1,349,658 Total primary government $ 4015,705 $ 485,397$ 10.783.545 $ 19.757,881 $ 25.225621 $ 31.352089 Notes: (1) The fiscal year 2015 governmental activities were restated with implementation of GASB 68 8 71 to record a beginning net pension liability and deferred outflow of resources for contributions made between the measurement date and fiscal year end. (2) The fiscal year 2018 governmental activities were restated with implementation of GASB 75 to record a beginning net OPEB liability and deferred outflow of resources for contributions made between the measurement date and fiscal year end. 91 Fiscal Year 2021 2022 2023 2024 $ 17,255,980 $ 20,254,045 $ 27,032,249 $ 21,150,357 26,422,950 24,240,573 36,077,852 38,959,551 14,984,662 14,182,657 24,718,438 15,389,261 13,626, 946 16,005, 075 16, 848,177 18, 277, 084 1,527,200 2,064,562 2,873,370 1,540,892 145.929 466,577 487,635 178,508 73,963,667 77,213,489 108,037,721 95,495,653 17,324,414 17,959,957 19,540,609 20,780,323 1,009,125 386,898 59,123 107,716 18,333,539 18,346,855 19,599,732 20,888,039 $ 92,297,206 $ 95560,344_ $ 127,637453 $ 116,383,692 $ 4,152,796 $ 3,260,855 $ 3,579,903 $ 4,076,158 7,065,519 6,651,483 18,261,953 8,966,993 5,491,545 5,371,311 5,429,428 6,197,830 1,565,257 930,087 2,356,770 815,576 4.164.801 457.008 _ 1,733,548 1,349,652 22439,918 16.670.744 31.361.602 21.406,209 29,054,152 32,708,631 32,168,051 32,535,077 592.797 621,363 683.747 869,449 29,646,949 33,329,994 32,851,798 33,404,526 $ 52086,867 .$ 50,000.738 $ 64213.400 $ 54,810735 $ (51,523,749) $ (60,542,745) $ (76,676,119) $ (74,089,444) 11,313,410 14,983,139 13,252,066 12,516,487 $ (40,210,339) $ {45.559,606} $ {63,424.0535 $ (61,572,957) $ 34,131,625 $ 36,920,934 $ 42,362,924 $ 45,710,705 4,973,900 4,414,339 4,799,484 4,451,622 18,737,374 24,413,463 25,344,604 24,406,225 7,125,294 7,629,919 8,713,593 9,317,855 1,031,746 - 5,280,165 7,459,624 41,584 149,346 1,442,422 434,537 1,745,580 5,078,575 3,899,519 4,739,339 5,117095 5,14651 69,941,042 78,267,340 94,805,867 102,002,794 7,656 792,209 1,292,274 6,521 12,251 - (3,899.519) (4,739.339) (5,117,095) [5.143,651) (3,885.342) (4,739.339) (4,312,635) (3,851,377) $ 66,055,700 $ 73,528,001 $ 90,493,232 $ 98,151,417 $ 18,417,293 $ 17,724,595 $ 18,129,748 $ 27,913,350 7,428,068 10,243,800 8,939,431 8,665,110 $ 25,845,361 $ 27,968,395 $ 27,069,179 $ 36,578,460 92 DRAFT 4/10/202: TABLE 2 DRAFT 411 4/202%, CITY OF FARMERS BRANCH. TEXAS FUND BALANCES, GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (modified accrual basis of accounfing) WNAUDITED� All Other Governmental Funds Fiscal Year Nonspendable $ 2015 2016 2017 2018 2019 2020 General Fund 22,883,726 19,182,416 15,144,319 33,841,817 27,285,503 31,040,799 Nonspendable $ 132,756 $ 448,649 $ 517,318 $ 410,007 $ 2,737,891 $ 3,548,208 Assigned 4,676,363 4,182,793 3,629,261 5,244,119 3,126,224 3,307,524 Unassigned 7,907,059 8,257,163 10,183,899 14,421,939 17,828,976 16,720,978 Total general fund $ 12,716,178 $ 12,888,605 $ 14,330,478 $ 20,076,065 $ 23,693,091 $ 23,576,710 All Other Governmental Funds Nonspendable $ 5,647 $ 1,178,410 $ 813 $ 24,488 $ 938 $ 704,863 Restricted 22,883,726 19,182,416 15,144,319 33,841,817 27,285,503 31,040,799 Assigned 990,659 1,842,960 2,398,480 3,250,792 3,370,932 4,929,935 Unassigned Total all other governmental funds $ 23,880,032 $ 22,203,786 $ 17,543,612 $ 37,117,097 $ 30,657,373 $ 36,675,597 93 Fiscal Year 2021 2022 2023 2024 $ 3,517,846 $ 3,069,861 $ 3,707,863 $ 3,828,435 4,477,605 10,206,486 11,399,268 19,740,427 22,030,886 23,040,864 23,413,424 22,211,703 $ 30,026,337 $ 36,317,211 $ 38,520,555 $ 45,780,565 $ 1,300,176 $ 1,719,675 $ 1,719,550 $ 1,719,488 27,327,233 48,193,026 48,316,315 32,796,996 3,409,615 8,551,647 13,901,719 16,100,930 (2,770) - (1,654,320) $ 32,037,024 $ 58,461,578 $ 63,937,584 $ 48.963.094 94 DRAFT / O/2O2E CITY OF FARMERS BRANCH, TEXAS CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (modified accrual basis of accounting) UNAUDITED, REVENUES Property taxes Sales and use taxes Hotel/motel taxes Franchise taxes Tax increment financing Licenses and permits Charges for services Fines and forfeitures Special assessments Investment income Intergovernmental Miscellaneous Total revenues EXPENDITURES General government Public safety Public works Culture and recreation Debt service: Principal retirement Interest and fiscal agent charges Issuance costs Loss due to decline in market value Capital outlay Total expenditures Deficiency of revenues under expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfers out Certificates of obligation issued General obligation refunding and improvement bonds issued Premiums on debt issued Payment to refund bond escrow agent Issuance of SBITAs Sale of capital assets/insurance recoveries Total other financing sources Net change in fund balances Debt service as a percentage of noncapital expenditures DRAFT 41101202,r"... 3,450,000 3,930,000 Fiscal Year 5,481,000 6,081,028 4,120,000 2015 2016 2017 2018 2019 2020 $ 24,536,084 $ 26,330,398 $ 28,416,586 $ 30,016,868 $ 31,975,934 $ 34,907,228 13,363, 544 13,639,841 13,936,336 14,618,441 17,410,323 17,164,707 2,728,631 2,959,667 2,892,655 2,849,666 3,115,374 1,794,067 4,411,259 4,309,598 4,255,212 4,207,394 4,132,975 3,939,882 1,289,826 2,236,280 3,481,586 4,949,033 7,351,606 4,513,776 1,680,095 1,427,801 2,024,453 5,016,007 3,712,038 2,883,283 5,001,160 5,407,761 5,487,380 6,280,213 8,710,341 8,432,009 3,034,885 3,125,094 3,176,432 2,737,338 2,787,243 1,709,922 4,496 1,152 276 829 - 1,591,991 1,651,645 1,447,475 1,787,154 2,935,658 2,393,143 584,312 503,153 676,535 327,232 510,454 2,482,704 279,221 194,356 744,394 623,672 1,116,009 546,467 58,505,504 61,786,746 66,539,044 73,413,294 83,758,784 80,767,188 12,880,704 13,447,135 14,173,367 13,541,524 15,695,223 20,340,488 23,117,436 24,353,622 25,600,823 25,364,483 26,304,729 29,457,949 7,145,553 7,378,781 8,458,117 9,298,814 9,833,782 10,230,771 11,746,205 12,923,543 12,997,256 13,029,696 13,993,554 12,902,268 3,450,000 3,930,000 4,605,000 5,481,000 6,081,028 4,120,000 1,531,742 1,437,739 1,380,656 1,256,017 3,060,568 4,597,248 96,628 429,311 177,131 11,716,646 7,269,438 7,588,292 10,955,111 16,611,491 10,554,026 71,588,286 70,836,886 74,803,511 79,355,956 91,580,375 92,379,881 (13,082,78 (9,050,140) (8,264,467) (5,942,662) (7,821,591) (11,612,693) 6,528,075 7,860,588 9,715,107 7,827,000 6,814,947 8,238,200 (2,477,275) (3,095,788) (4,984,107) (3,129,100) (3,673,047) (4,163,700) 2,545,000 10,515,000 13,540,000 12,305,000 149,083 1,178,547 1,337,311 (3,290,921) 709,764 87,438 315,166 1,171,523 1,836,993 3,247,410 4,760,564 7,546,321 5,046,166 31,261,734 4,978,893 17,514,536 (8,322,218) (1,503,819) (3,218,301) 25,319,072 (2,842,698) 5,901,843 8.32% 8.60% 8.91% 10.48% 12.19% 10.87% 95 Fiscal Year 15,147,600 16, 218, 591 15, 543,778 2021 2022 2023 2024 $ 39,103,679 $ 41,399,866 $ 47,015,163 $ 50,038,531 18,737,374 24,413,463 25,344,604 24,406,225 1,683,018 2,913,839 3,341,512 3,515,051 3,877,037 3,856,016 3,869,822 3,828,952 1,557,120 860,064 1,501,804 2,011,454 3,810,089 2,700,392 2,137,679 2,252,812 9,961,389 10,810,063 11,735,048 12,061,700 1,731,794 1,235,780 1,262,584 2,262,179 166 - - - 1,031,796 - 5,280,165 7,459,624 2,266,930 3,546,738 3,534,105 7,674,876 1,350,204 351,968 2,131,452 328,017 85,110,596 92,088,189 107,153,938 115,839,421 17,608,739 17,723,764 24,979,555 20,438,928 28,611,977 29,640,456 33,553,105 36,873,749 11,292,346 10,019,759 9,881,308 10,921,561 15,497,781 14,258,499 15,006,425 16,206,097 4,300,000 4,699,556 5,137,872 4,534,947 2,039,374 1,857,848 2,702,626 2,521,056 - 319,500 - 8,186,898 9,366,850 14,742,428 37,422,708 87,537,115 87,886,232 106,003,319 128,919,046 (2,426,519) 4,201,957 1,150,619 (13,079,625) 8,025,400 15,147,600 16, 218, 591 15, 543,778 (4,045,881) (10,257,700) (11,279,760) (10,792,678) 23,810,000 - 640,087 245,460 258,054 167,281 956,852 368,585 4,237,573 28,867,181 6,535,770 5,365,145 1,811,054 33,069,138 7,686,389 (7,714,480) 7.99% 8.35% 8.59% 7.71% 96 DRAFT 4/1O/2O2f TABLE 4 DRAFT / 01202,r.-, CITY OF FARMERS BRANCH, TEXAS ESTIMATED ACTUAL AND ASSESSED VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS 'UNAUDITED' Source: Dallas Central Appraisal District Note: Property in the city is reassessed at least every three years. Property is assessed at actual value; therefore, the assessed values are equal to actual value less exemptions. Tax rates are per $100 of assessed value. 97 RESIDENTIAL PROPERTY COMMERCIAL PROPERTY ESTIMATED LESS: ESTIMATED LESS: FISCAL ACTUAL TAX ASSESSED ACTUAL TAX ASSESSED YEAR VALUE EXEMPTIONS VALUE VALUE EXEMPTIONS VALUE 2015 $ 1,219,899,590 $ 348,502,483 $ 871,397,107 $ 2,811,101,750 $ 491,719,476 $ 2,319,382,274 2016 1,282,165,920 358,024,345 924,141,575 3,043,315,820 498,804,477 2,544,511,343 2017 1,406,460,670 393,903,858 1,012,556,812 3,281,998,130 528,879,342 2,753,118,788 2018 1,552,573,710 442,604,793 1,109,968,917 3,423,020,660 512,810,029 2,910,210,631 2019 1,798,603,280 525,012,568 1,273,590,712 3,677,741,720 485,632,657 3,192,109,063 2020 2,008,956,470 551,238,764 1,457,717,706 4,103,048,110 521,046,781 3,582,001,329 2021 2,175,288,420 601,694,918 1,573,593,502 4,031,330,270 524,799,521 3,506,530,749 2022 2,464,002,060 614,135,636 1,849,866,424 4,487,428,100 544,619,638 3,942,808,462 2023 2,883,772,300 820,690,421 2,063,081,879 5,266,679,330 561,258,190 4,705,421,140 2024 3,432,772,830 977,521,391 2,455,251,439 5,912,890,050 597,252,878 5,315,637,172 Source: Dallas Central Appraisal District Note: Property in the city is reassessed at least every three years. Property is assessed at actual value; therefore, the assessed values are equal to actual value less exemptions. Tax rates are per $100 of assessed value. 97 DRAFT 4/10/2021.1. BUSINESS -PERSONAL PROPERTY TOTAL ESTIMATED LESS: ESTIMATED LESS: TOTAL ACTUAL TAX ASSESSED ACTUAL TAX ASSESSED DIRECT TAX VALUE EXEMPTIONS VALUE VALUE EXEMPTIONS VALUE RATE $ 1,275,747,640 $ 250,286,356 $ 1,025,461,284 $ 5,306,748,980 $ 1,090,508,315 $ 4,216,240,665 0.6023 1,454,961,470 384,016,188 1,070,945,282 5,780,443,210 1,240,845,010 4,539,598,200 0.6023 1,361,283,370 274,149,744 1,087,133,626 6,049,742,170 1,196,932,944 4,852,809,226 0.6023 1,305,089,180 223,283,131 1,081,806,049 6,280,683,550 1,178,697,953 5,101,985,597 0.6023 1,315,215,260 205,277,411 1,109,937,849 6,791,559,810 1,215,922,636 5,575,637,174 0.5995 1,366,077,570 192,257,572 1,173,819,998 7,478,082,150 1,264,543,117 6,213,539,033 0.5995 1,389,153,750 217,850,106 1,171,303,644 7,595,772,440 1,344,344,545 6,251,427,895 0.5890 1,351,735,470 193,071,601 1,158,663,869 8,303,165,630 1,351,826,875 6,951,338,755 0.5890 1,526,102,570 228,396,600 1,297,705,970 9,676,554,200 1,610,345,211 8,066,208,989 0.5890 1,740,989,030 231,761,076 1,509,227,954 11,086,651,910 1,806,535,345 9,280,116,565 0.5690 98 DRAFT 4/10/202,r,-. CITY OF FARMERS BRANCH. TEXAS TABLE 6 DIRECT AND OVERLAPPING PROPERTY TAX RATES (PER $100 OF ASSESSED VALUE) LAST TEN FISCAL YEARS UNAUDITED; Source: Dallas Central Appraisal District Notes: (1) Overlapping rates are those of local and county governments that apply to property owners within the City of Farmers Branch. Not all overlapping rates apply to all city property owners; for example, although the county property tax rates apply to all city property owners, the Dallas Independent School District (ISD) rates apply only to the approximately 29.3% of city property owners whose property is located within that districts geographic boundaries. (2) The City's basic property tax rate may be increased only by a majority vote of the City Council up to the limits of State law, after which city residents may petition for a vote. Rates for debt service are set based on each year's debt requirements. (3) Does not include Dallas ISD as school districts do not overlap each other. 99 OVERLAPPING RATES ;1 i CITY DIRECT RATES CARROLLTON - DALLAS GENERAL FARMERS DALLAS COUNTY FISCAL BASIC OBLIGATION TOTAL BRANCH DALLAS DALLAS COUNTY COMMUNITY YEAR RATE DEBT SERVICE DIRECT .2+ I.S.D. I.S.D. COUNTY HOSPITAL COLLEGE TOTAL 3 2015 $ 0.5076 $ 0.0947 $ 0.6023 $ 1.3033 $ 1.2821 $ 0.2531 $ 0.2860 $ 0.1248 $ 2.5695 2016 0.5139 0.0884 0.6023 1.2817 1.2821 0.2531 0.2860 0.1237 2.5468 2017 0.5153 0.0870 0.6023 1.3917 1.2821 0.2524 0.2794 0.1229 2.6487 2018 0.5177 0.0846 0.6023 1.3810 1.2821 0.2531 0.2794 0.1242 2.6400 2019 0.5167 0.0828 0.5995 1.3700 1.4120 0.2531 0.2794 0.1240 2.6260 2020 0.5273 0.0722 0.5995 1.2684 1.3104 0.2531 0.2695 0.1240 2.5145 2021 0.5062 0.0828 0.5890 1.2547 1.2967 0.2497 0.2661 0.1240 2.4835 2022 0.5272 0.0618 0.5890 1.2013 1.2482 0.2379 0.2550 0.1235 2.4067 2023 0.5308 0.0582 0.5890 1.1429 1.1849 0.2279 0.2358 0.1159 2.3115 2024 0.5204 0.0486 0.5690 0.9836 1.0138 0.2157 0.2195 0.1103 2.0981 Source: Dallas Central Appraisal District Notes: (1) Overlapping rates are those of local and county governments that apply to property owners within the City of Farmers Branch. Not all overlapping rates apply to all city property owners; for example, although the county property tax rates apply to all city property owners, the Dallas Independent School District (ISD) rates apply only to the approximately 29.3% of city property owners whose property is located within that districts geographic boundaries. (2) The City's basic property tax rate may be increased only by a majority vote of the City Council up to the limits of State law, after which city residents may petition for a vote. Rates for debt service are set based on each year's debt requirements. (3) Does not include Dallas ISD as school districts do not overlap each other. 99 DRAFT 4/ 0/202%91.0 CITY OF FARMERS BRANCH TEXAS TABLE 7 DIRECT AND OVERLAPPING PROPERTY TAX LEVIES LAST TEN FISCAL YEARS UNAUDITED: Source: Dallas Central Appraisal District with exception of Carrollton -Farmers Branch I.S.D. In 2009, Carrollton -Farmers Branch I.S.D. began reporting their own values since the district spans multiple counties and appraisal districts began reporting only their portion of an entity's value if the entity overlaps jurisdictions. 100 CARROLLTON - DALLAS FARMERS DALLAS COUNTY FISCAL FARMERS BRANCH DALLAS DALLAS COUNTY COMMUNITY YEAR BRANCH I.S.D. I.S.D. COUNTY HOSPITAL COLLEGE 2015 $ 25,393,026 $ 209,568,728 $ 1,097,894,981 $ 443,108,658 $ 501,250,455 $ 228,116,786 2016 27,340,502 218,964,725 1,185,157,319 476,309,394 540,475,266 243,935,893 2017 29,226,869 256,530,998 1,294,078,980 522,984,193 581,286,539 266,184,338 2018 30,727,576 274,637,780 1,390,841,756 561,435,880 622,295,974 284,192,691 2019 33,426,335 297,645,641 1,684,977,660 616,748,343 682,256,444 310,881,970 2020 37,250,601 290,346,785 1,681,891,083 662,939,267 707,168,061 334,408,023 2021 36,820,910 300,512,257 1,660,552,636 657,244,595 701,836,668 336,248,911 2022 40,943,385 317,781,215 1,771,311,390 693,018,753 746,379,733 369,888,806 2023 47,509,971 342,843,789 1,930,400,883 757,520,618 795,736,277 399,967,180 2024 52,803,863 310,871,178 1,784,582,261 809,158,337 825,439,447 424,776,849 Source: Dallas Central Appraisal District with exception of Carrollton -Farmers Branch I.S.D. In 2009, Carrollton -Farmers Branch I.S.D. began reporting their own values since the district spans multiple counties and appraisal districts began reporting only their portion of an entity's value if the entity overlaps jurisdictions. 100 DRAFT / 01202,r. - CITY OF FARMERS BRANCH. T EXAS TABLE 8 PRINCIPAL PROPERTY TAXPAYERS CURRENT YEAR AND NINE YEARS AGO UNAUDITED) TAXPAYER Southern Glazers Wine and Spirits JDFW Boardwalk LLC WRIA 2017 LP Luxia Gallery House LLC Royal TX Partners LLC UDR Canal I LLC VAF2 Mack Lakeside LLC Mercer Acquisition LLC EOS Properties at Providence Towers Lakeview at Parkside 70 Washington Street LP Occidental Chemical Corporation Maxim Integrated Products Garden Centura LP Glazers Wholesale Drug Co. AT&T Communications (formerly Southwestern Bell/Cingular) TP IP Tower III Corporation IBM Corporation 2024 $ 1,450,987,010 Source: Dallas County, "City Report of Property Value," City of Farmers Branch Notes: (a) Total taxable value October 1, 2023 (2024 fiscal year) is $9,280,116,565. (b) Total taxable value October 1, 2014 (2015 fiscal year) is $4,216,240,665. 101 TAXABLE ASSESSED VALUE 2015 I:M. IMII PERCENTAGE OF TOTAL CITY TAXABLE ASSESSED VALUE {bi 72,000,000 4 PERCENTAGE 49,600,000 10 OF TOTAL CITY TAXABLE 1 TAXABLE ASSESSED 2 ASSESSED VALUE RANK VALUEtai $ 199,162,980 1 2.15% 193,000,000 2 2.08% 190,704,030 3 2.05% 181,500,000 4 1.96% 136,000,000 5 1.47% 125,000,000 6 1.35% 113,620,DOO 7 1.22% 110,000,000 8 1.19% 102,000,000 9 1.10% 100,000,000 10 1.08% $ 1,450,987,010 Source: Dallas County, "City Report of Property Value," City of Farmers Branch Notes: (a) Total taxable value October 1, 2023 (2024 fiscal year) is $9,280,116,565. (b) Total taxable value October 1, 2014 (2015 fiscal year) is $4,216,240,665. 101 TAXABLE ASSESSED VALUE 2015 I:M. IMII PERCENTAGE OF TOTAL CITY TAXABLE ASSESSED VALUE {bi 72,000,000 4 1.71% 49,600,000 10 1.18% 123,423,850 1 2.93% 75,200,000 2 1.78% 72,121,955 69,275,000 58,915,520 54,406,080 53,000,000 49 7310 15.65% $ 677,731,715 3 5 6 7 8 9 1.71% 1.64% 1.40% 1.29% 1.26% 1.18% 16.08% DRAFT / 0/20 r-. CITY OF FARMERS BRANCH TEXAS TABLE 9 PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS UNAUDITED i Source: Dallas County Tax Office Note: (1) The original levy is as of July of the previous fiscal year and does not include any subsequent adjustments. 102 COLLECTED WITHIN THE TOTAL COLLECTIONS TO DATE FISCAL YEAR OF THE LEVY COLLECTIONS/ PERCENT OF ACTUAL CURRENT PERCENT OF (REFUNDS) IN TOTAL TAX FISCAL LEVY ORIGINAL SUBSEQUENT TOTAL TAX TOTALLEVY SUBSEQUENT TOTALTAX COLLECTIONS YEAR YEAR LEVY Ll) ADJUSTMENTS LEVY COLLECTIONS COLLECTED YEARS COLLECTIONS TO TOTAL LEVY 2015 2014 $ 25,393,026 $ (365,086) $ 25,027,940 $ 24,917,704 99.56% $ 81,866 $ 24,999,570 99.89% 2016 2015 27,340,502 (432,402) 26,908,100 26,719,748 99.30% 152,251 26,871,999 99.87% 2017 2016 29,226,869 (574,254) 28,652,615 28,371,356 99.02% 217,029 28,588,385 99.78% 2018 2017 30,727,576 (43,867) 30,683,709 30,399,097 99.07% 201,167 30,600,264 99.73% 2019 2018 33,426,335 (419,367) 33,006,968 33,064,557 100.17% (140,824) 32,923,733 99.75% 2020 2019 37,250,601 (474,649) 36,775,952 36,897,441 100.33% (232,147) 36,665,294 99.70% 2021 2020 36,820,910 3,470,546 40,291,456 40,300,904 100.02% (121,859) 40,179,045 99.72% 2022 2021 40,943,385 1,048,845 41,992,230 42,196,219 100.49% (255,160) 41,941,059 99.88% 2023 2022 47,509,971 (1,441,516) 46,068,455 48,429,875 105.13% (1,664,174) 46,765,701 101.51% 2024 2023 52,803,863 227,126 53,030,989 52,643,219 99.27% - 52,643,219 99.27% Source: Dallas County Tax Office Note: (1) The original levy is as of July of the previous fiscal year and does not include any subsequent adjustments. 102 DRAFT 41101202.r-, CITY OF FARMERS BRANCH, TEXAS TABLE 10 RATIOS OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS UNAUDITED Notes: Details regarding the Cites outstanding debt can be found in the notes to the financial statements. (1) Population based on North Central Texas Council of Governments (NCTCOG) original population estimates, with the exception of Fiscal Year 2020 and 2021, which are based on the estimated US Census.The US Census Bureau subsequently lowered their original 2020 population estimate in July 2021. Beginning in Fiscal Year 2022, the NCTCOG estimates published in January were used. 103 GENERAL TOTAL TAXABLE PERCENTAGE FISCAL OBLIGATION DEVELOPER LEASES & OUTSTANDING ASSESSED OF TAXABLE ESTIMATED DEBT PER YEAR BONDS ADVANCES SBITAs DEBT VALUE ASSESSEDVALUE POPULATIONs1; CAPITA Governmental Activities: 2015 $ 41,268,133 $ 6,557,028 $ - $ 47,825,161 $ 4,216,240,665 1.13% 30,350 $ 1,576 2016 40,762,188 5,727,028 46,489,216 4,539,598,200 1.02% 30,480 1,525 2017 37,342,191 4,437,028 41,779,219 4,852,809,226 0.86% 31,560 1,324 2018 59,135,530 2,401,028 61,536,558 5,101,985,597 1.21% 31,590 1,948 2019 55,232,993 55,232,993 5,575,637,174 0.99% 31,780 1,738 2020 60,949,386 60,949,386 6,213,539,033 0.98% 41,848 1,456 2021 56,287,366 56,287,366 6,251,427,895 0.90% 35,991 1,564 2022 75,181,055 325,442 75,506,497 6,951,338,755 1.09% 38,143 1,980 2023 70,035,771 662,657 70,698,428 8,066,208,989 0.88% 38,615 1,831 2024 65,751,051 361,112 66,112,163 9,280,116,565 0.71% 39,070 1,692 Notes: Details regarding the Cites outstanding debt can be found in the notes to the financial statements. (1) Population based on North Central Texas Council of Governments (NCTCOG) original population estimates, with the exception of Fiscal Year 2020 and 2021, which are based on the estimated US Census.The US Census Bureau subsequently lowered their original 2020 population estimate in July 2021. Beginning in Fiscal Year 2022, the NCTCOG estimates published in January were used. 103 Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements. (1) The amount available for debt service in 2024 is negative due to the classification of revenue received from the Dallas Stars lease being classified as unearned revenue until the facility opens in January 2025. (2) Population based on North Central Texas Council of Governments (NCTCOG) original population estimates, with the exception of Fiscal Year 2020 and 2021, which are based on the estimated US Census.The US Census Bureau subsequently lowered their original 2020 population estimate in July 2021. Beginning in Fiscal Year 2022, the NCTCOG estimates published in January were used. 104 DRA17T f� / 01209,r".. CITY OF FARMERS BRANCH_ TE PERCENTAGE GENERAL LESS: AMOUNTS TABLE 11 RATIOS OF GENERAL BONDED DEBT OUTSTANDING OF ACTUAL LAST TEN FISCAL YEARS OBLIGATION AVAILABLE IN DEBT UNAUDITED TAXABLE VALUE ESTIMATED PER Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements. (1) The amount available for debt service in 2024 is negative due to the classification of revenue received from the Dallas Stars lease being classified as unearned revenue until the facility opens in January 2025. (2) Population based on North Central Texas Council of Governments (NCTCOG) original population estimates, with the exception of Fiscal Year 2020 and 2021, which are based on the estimated US Census.The US Census Bureau subsequently lowered their original 2020 population estimate in July 2021. Beginning in Fiscal Year 2022, the NCTCOG estimates published in January were used. 104 PERCENTAGE GENERAL LESS: AMOUNTS TAXABLE OF ACTUAL FISCAL OBLIGATION AVAILABLE IN DEBT ASSESSED TAXABLE VALUE ESTIMATED PER YEAR BONDS SERVICE FUNS_ TOTAL VALUE OF PROPERTY POPULATION f21 CAPITA 2015 $ 41,268,133 $ 232,113 $ 41,036,020 $ 4,216,240,665 0.97% 30,350 $ 1,352 2016 40,762,188 926,091 39,836,097 4,539,598,200 0.88% 30,480 1,307 2017 37,342,191 488,376 36,853,815 4,852,809,226 0.76% 31,560 1,168 2018 59,135,530 725,906 58,409,624 5,101,985,597 1.14% 31,590 1,849 2019 55,232,993 2,799,117 52,433,876 5,575,637,174 0.94% 31,780 1,650 2020 60,949,386 2,997,410 57,951,976 6,213,539,033 0.93% 41,848 1,385 2021 56,287,366 3,976,972 52,310,394 6,251,427,895 0.84% 35,991 1,453 2022 75,181,055 2,552,786 72,628,269 6,951,338,755 1.04% 38,143 1,904 2023 70,035,771 287,803 69,747,968 8,066,208,989 0.86% 38,615 1,806 2024 65,751,051 - 65,751,051 9,280,116,565 0.71% 39,070 1,683 Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements. (1) The amount available for debt service in 2024 is negative due to the classification of revenue received from the Dallas Stars lease being classified as unearned revenue until the facility opens in January 2025. (2) Population based on North Central Texas Council of Governments (NCTCOG) original population estimates, with the exception of Fiscal Year 2020 and 2021, which are based on the estimated US Census.The US Census Bureau subsequently lowered their original 2020 population estimate in July 2021. Beginning in Fiscal Year 2022, the NCTCOG estimates published in January were used. 104 DRAFT /10/20 E-0 CITY OF FARMERS BRANCH TEXAS TABLE 12 DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT SEPTEMBER 30, 2024 ,,UNAUDITED) ESTIMATED ESTIMATED DEBT PERCENTAGE SHARE OF GOVERNMENTAL UNIT OUTSTANDING OVERLAPPING 1,• OVERLAPPING DEBT Debt repaid with property taxes Carrollton/Farmers Branch Independent School District $ 643,675,000 19.04% $ 122,555,720 Dallas Independent School District 4,064,130,000 1.62% 65,838,906 Dallas County Hospital District 527,660,000 2.31% 12,188,946 Dallas County Community College District 318,675,000 2.31% 7,361,393 Dallas County 198,645,000 2.31% 4,588,700 Valwood Improvement Authority 2,385,000 50.47% 1,203,710 Subtotal, overlapping debt City direct debt (2) Total direct and overlapping bonded debt Ratio of overlapping bonded debt to taxable assessed valuation (valued at 100% of market value) Per capita overlapping bonded debt Source: Municipal Advisory Council of Texas 5,755,170,000 65,751,051 $ 5,820,921,051 100.00% 3.01% $ 7,153.53 (3) 213,737,374 65,751,051 $ 279,488,426 Notes: (1) The "Estimated Percentage Overlapping" is determined by dividing the City's certified taxable value by the County and related other County entities certified taxable values. The share of market value for Carrollton/Farmers Branch ISD, Dallas ISD and Valwood Improvement Authority is calculated by the Dallas Central Appraisal District (DCAD) once every two years as these boundaries overlap within the City. (Source: Municipal Advisory Council of Texas) (2) The City direct debt includes General Obligation Refunding Bonds, Taxable Series 2011, in the amount of $1,155,000 and Certificates of Obligation, Taxable Series 2022, in the amount of $23,215,000 which are being paid from amounts received under the Ground Lease Agreement (the "Lease") entered into by the City and the Dallas Stars, L.P. The City direct debt also includes bond premiumsidiscounts. (3) Based on estimated population. 105 DRAFT /1 01202,r-., CITY OF FARMERS BRANCH. TEXAS TABLE 13 DEMOGRAPHIC STATISTICS LAST TEN FISCAL YEARS (UNAUDITED) FISCAL ESTIMATED MEDIAN PER CAPITA PERSONAL UNEMPLOYMENT YEAR POPULATION (1) AGE (2) INCOME (2) INCOME (3) RATE % (4) Asian alone 7.50% 2015 30,350 36.1 $ 29,573 $ 897,540,550 3.7% 2016 30,480 36.7 30,054 916,045,920 4.0% 2017 31,560 35.9 31,053 980,032,680 3.6% 2018 31,590 35.9 30,993 979,068,870 3.3% 2019 31,780 36.4 33,214 1,055,540,920 3.0% 2020 41,848 35.7 36,058 1,508,955,184 6.4% 2021 35,991 35.7 36,058 1,297,763,478 4.2% 2022 38,143 34.9 38,940 1,485,288,420 3.3% 2023 38,615 34.1 43,681 1,686,741,815 3.8% 2024 39,070 33.5 44,577 1,741,623,390 3.9% Sources/Notes: (1) Population based on North Central Texas Council of Governments (NCTCOG) original population estimates, with the exception of Fiscal Year 2020 and 2021, which are based on the estimated US Census.The US Census Bureau subsequently lowered their original 2020 population estimate in July 2021. Beginning in Fiscal Year 2022, the NCTCOG estimates published in January were used. (2) Median Age and Per Capita Income data provided by U.S. Census Bureau's American Community Survey - 5 Year Estimates. (3) Personal Income is derived by multiplying per capita income by the estimated population. (4) Unemployment Rate % provided by Bureau of Labor Statistics. The following information is provided by the U,S. Census Bureau based on 2020 estimated census information. Source: U.S. Census Bureau Households: 14,295 Male: 17,492 Families: 9,546 Female: 18,499 Race and Hispanic Origin: White alone 71.70% Black or African American alone 5.70% American Indian and Alaska Native alone 0.40% Asian alone 7.50% Native Hawaiian and Other Pacific Islander alone 0.00% Hispanic or Latino 49.10% White alone, not Hispanic or Latino 34.90% Two or More Races 4.70% 106 Sources Beginning in 2023, employment estimates were sourced from US Census Bureau OnTheMap, which represents a three-year lag. The total estimated employment for the area is 72,932 per this source. Prior employment estimates were sourced from North Central Texas Council of Governments (NCTCOG), which has a five-year lag. For 2015 estimated total employment was 83,218. (See NCTCOG 2030 Demographic Forecast and Demographic Data for Farmers Branch for further informafion.) The NCTCOG report is adjusted by the City of Farmers Branch finance department for businesses that dosed or moved prior to the reporting year. Note: (1) Employers with the same number of employees are ranked the same, which may result in the reporting of more than 10 employers. 107 DRAFT A / 01202.E. CITY OF FARMERS BRANCH TEXAS 2015 1 1i PERCENTAGE TABLE 14 PRINCIPAL EMPLOYERS PERCENTAGE CURRENT AND NINE YEARS AGO OF TOTAL CITY 'UNAUDITED EMPLOYERS EMPLOYEES RANK Sources Beginning in 2023, employment estimates were sourced from US Census Bureau OnTheMap, which represents a three-year lag. The total estimated employment for the area is 72,932 per this source. Prior employment estimates were sourced from North Central Texas Council of Governments (NCTCOG), which has a five-year lag. For 2015 estimated total employment was 83,218. (See NCTCOG 2030 Demographic Forecast and Demographic Data for Farmers Branch for further informafion.) The NCTCOG report is adjusted by the City of Farmers Branch finance department for businesses that dosed or moved prior to the reporting year. Note: (1) Employers with the same number of employees are ranked the same, which may result in the reporting of more than 10 employers. 107 2024 111 2015 1 1i PERCENTAGE PERCENTAGE OF TOTAL CITY OF TOTAL CITY EMPLOYERS EMPLOYEES RANK EMPLOYMENT EMPLOYEES RANK EMPLOYMENT Federal Government- Internal Revenue Service 1,200 1 1.65% 1,200 3 1.44% Feizy 1,170 2 1.60% Anserteam LLC 1,001 3 1.37% Telvista 1,000 4 1.37% 1,000 5 1.20% TD Industries 900 5 1.23% 900 6 1.08% Haggar Clothing Company 750 6 1.03% 750 7 0.90% IBM Corporation 700 7 0.96% 1,870 2 2.25% Moni Smart Security (aka Monitronics or Brinks Home Security) 700 7 0.96% 700 8 0.84% Encore Enterprises, Inc. 650 9 0.89% 650 9 0.78% Glazer's Wholesale Drug Company 650 9 0.89% 650 9 0.78% JPMorgan Chase Investment Services 2,390 1 2.87% GEICO 1,088 4 1.31% 8,721 11.95% 11,198 13.45% Sources Beginning in 2023, employment estimates were sourced from US Census Bureau OnTheMap, which represents a three-year lag. The total estimated employment for the area is 72,932 per this source. Prior employment estimates were sourced from North Central Texas Council of Governments (NCTCOG), which has a five-year lag. For 2015 estimated total employment was 83,218. (See NCTCOG 2030 Demographic Forecast and Demographic Data for Farmers Branch for further informafion.) The NCTCOG report is adjusted by the City of Farmers Branch finance department for businesses that dosed or moved prior to the reporting year. Note: (1) Employers with the same number of employees are ranked the same, which may result in the reporting of more than 10 employers. 107 DRAFT / O12O2F CITY OF FARMERS BRANCH. TEXAS TABLE 15 FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTIONIPROGRAM LAST TEN FISCAL YEARS fUNAUDITEDi Total 431.78 439.56 427.53 439.66 434.24 450.22 444.75 457.22 464.22 474.22 Source: City of Fanners Branch Finance Department Notes: Information is reported from amended budgets. In 2018, Innovation & Technology was separated from Finance and Public Health & Sustainability was separated from Public Works. In 2023-24, several divisions were moved resulting in numerous changes to the reporting structure. 108 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Function/Program General government 72.14 73.60 74.21 69.31 69.14 70.56 69.67 81.15 87.52 91.13 General administration 5.00 5.00 5.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 Communications 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 3.00 Economic development and planning 3.00 3.00 3.00 2.00 2.00 2.00 2.00 7.00 7.00 7.00 Support services - - - - - - - - - 6.00 Human resources 7.00 7.47 6.47 7.75 7.75 6.75 6.48 7.48 7.00 7.00 Finance 24.48 28.24 29.38 18.21 18.21 18.73 18.96 19.96 20.00 18.47 Innovation and technology - 0.00 0.00 11.89 11.89 12.89 12.75 14.25 14.75 17.25 Community services 28.00 26.19 27.00 20.00 20.00 20.00 20.00 8.00 11.00 7.18 Neighborhood services - - - - - - - 15.00 17.00 8.00 Animal services - - - - - - - - 8.46 Other 2.66 1.70 1.36 1.46 1.29 2.19 1.48 1.46 2.77 2.77 Public safety 198.15 199.11 184.49 189.42 189.46 195.90 196.36 204.35 206.20 215.25 Police 116.32 115.85 100.85 102.60 102.60 104.60 104.60 111.60 112.59 118.06 Fire 78.19 79.37 79.38 82.70 82.70 88.70 88.00 89.00 91.00 94.58 Other 3.64 3.89 4.26 4.12 4.16 2.60 3.76 3.75 2.61 2.61 Public works 32.17 35.43 36.90 45.79 45.91 44.77 44.69 37.69 36.71 35.52 Public health/sustainability - 0.00 0.00 20.17 20.17 20.17 19.00 12.00 12.19 10.00 Public works 31.00 34.17 35.17 24.00 24.00 24.00 24.00 24.00 24.00 25.00 Other 1.17 1.26 1.73 1.62 1.74 0.60 1.69 1.69 0.52 0.52 Culture and recreation 101.91 103.35 103.77 106.99 101.52 110.97 105.62 105.62 105.46 105.19 Parks 98.86 98.80 99.81 102.87 97.45 105.01 101.49 101.49 100.17 92.40 Tourism 8.70 Other 3.05 4.55 3.96 4.12 4.07 5.96 4.13 4.13 5.29 4.09 Water and sewer 27.17 27.76 27.89 27.88 27.93 27.51 27.82 27.82 27.44 26.44 Water and sewer 26.46 27.00 27.00 27.00 27.00 27.00 27.00 27.00 27.00 26.00 Other 0.71 0.76 0.89 0.88 0.93 0.51 0.82 0.82 0.44 0.44 Fleet and facilities management 0.24 0.31 0.27 0.27 0.28 0.51 0.59 0.59 0.89 0.69 Fleet and facilities 0.24 0.31 0.27 0.27 0.28 0.51 0.59 0.59 0.89 0.69 Total 431.78 439.56 427.53 439.66 434.24 450.22 444.75 457.22 464.22 474.22 Source: City of Fanners Branch Finance Department Notes: Information is reported from amended budgets. In 2018, Innovation & Technology was separated from Finance and Public Health & Sustainability was separated from Public Works. In 2023-24, several divisions were moved resulting in numerous changes to the reporting structure. 108 DRAFT / 0/20211F. - CITY OF FARMERS BRANCH TEXAS OPERATING INDICATORS BY FUNCTIONIPROGRAM LAST TEN FISCAL YEARS �UNAUDITEDi Public safety Police Number of authorized full-time employees Number of authorized swom officers Number of violations (citations) Fire Number of authorized full-time employees Number of EMS runs Number of fire runs Public works Street reconstruction (lane -miles) Street resurfacing (lane -miles) Culture and recreation Parks Recreation memberships sold (basic) [discontinued] Recreation memberships sold (fitness) Classic all -access membership (new 2023-24) Total pool admissions (1) Visits to Historical Park Library Volumes borrowed Volumes in library collection Water and sewer Average daily water consumption (thousands of gallons) Number of water consumers Total water purchased (thousands of gallons) Total waste water consumption (thousands of gallons) Sources: Various City departments. Fiscal Year 2015 2016 2017 2018 2019 2020 113 113 98 100 100 102 74 74 74 76 76 78 13,332 10,948 13,095 11,612 12,111 5,262 78 79 79 82 82 88 2,589 2,887 2,878 2,854 2,933 2,883 1,601 1,823 1,759 1,843 2,026 2,142 1.4 1.2 2.8 0.0 0.1 0.0 22.0 9.6 1.0 11.5 4.7 7.3 1,347 1,364 1,442 1,866 1,409 936 1,019 1,055 1,059 1,191 1,112 1,696 51,547 40,963 61,847 68,309 82,857 32,452 85,799 95,847 109,785 102,413 32,013 19,549 343,592 303,513 274,219 191,735 177,901 139,239 137,586 136,953 132,602 116,238 116,093 90,711 7,743 8,048 7,084 7,901 7,560 7,617 9,729 9,770 9,770 9,937 10,182 10,477 2,826,124 2,937,377 2,585,683 2,883,997 2,759,506 2,780,257 1,300,202 1,732,552 1,712,000 1,549,501 1,594,644 1,666,056 Note: (1) Total pool admissions have been restated for fiscal years 2015 and 2016 to include all pool admissions; previously, only daily -pass holders were included in the count. For the period ending 2020, the aquatics center ceased operations beginning March 13 and reopened June 15 to the public at 50% capacity in light of the GOVID-19 pandemic. 109 Fiscal Year 2021 2022 2023 2024 102 105 111 117 78 80 85 89 8,016 5,712 6,604 12,398 88 89 90 93 3,458 3,519 3,768 3,551 2,490 2,238 2,464 2,498 0.0 0.0 0.0 0.5 8.1 2.7 1.5 3.1 515 354 451 - 3,526 2,062 4,964 4,807 303 37,783 41,193 44,843 66,811 19,070 35,753 28,113 32,247 140,366 195,796 200,039 201,797 77,389 84,334 88,440 73,890 7,596 7,553 8,153 7,212 10,784 11,242 11,254 11,269 2,772,384 2,756,901 2,975,996 3,426,434 1,594,355 1,525,702 1,552,049 1,751,762 DRAFT /10/2O2G TABLE 16 110 DRAFT / 01209%11. F FARMERS BRANCH. TEXAS CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS (UNAUDITED) Utilities 2015 2016 2017 2018 2019 General government 2,012 2,041 2,093 2,171 2,171 Number of general government buildings 1 1 1 1 1 Public safety 21.5 21.5 21.5 21.5 21.5 Number of fire stations 3 3 3 3 3 Number of patrol units 15 15 19 19 19 Number of police stations 1 1 1 1 1 Public works Landfill capacity (million cubic yards) 24.5 24.5 53.2 53.2 53.2 Number of traffic signals 55 55 55 55 58 Streets (lane miles) (1) 411.5 412.0 413.1 413.1 427.1 Culture and recreation Number of aquatic centers (2) 1 1 1 1 1 Number of historical parks 1 1 1 1 1 Number of libraries 1 1 1 1 1 Number of parks 31 31 28 28 28 Number of playgrounds 13 13 13 13 13 Number of recreation centers 1 1 1 1 1 Number of senior centers 1 1 1 1 1 Parks acreage (3) 392 392 450 450 450 Utilities Number of fire hydrants 2,012 2,041 2,093 2,171 2,171 Sanitary sewers (miles) 165.9 166.0 152.9 162.8 162.8 Storage capacity (millions of gallons) 21.5 21.5 21.5 21.5 21.5 Storm sewers (miles) (1) 104 112 112 112.5 112.5 Water mains (miles) 206.6 206.6 201.3 202.4 202.4 Sources: Various City departments. Notes: (1) Total street and storm sewer miles were reduced in 2020 due to enhanced GIS information and the removal of streets and storm sewer miles that became private property. (2) The Gilds pool was demolished in 2014 and construction of a new aquatics center began in 2014. Construction of the aquatics center was completed in 2015. (3) Parks acreage was changed in 2021 to reflect only actual parks acreage. Prior year data included all acreage maintained by the Parks department 2020 2021 2022 2023 2024 1 1 1 1 1 3 3 3 3 3 19 21 21 22 24 1 1 1 1 1 53.2 53.2 53.2 53.2 53.2 59 60 60 61 61 405.0 400.0 401.0 397.2 398.4 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 28 28 28 29 30 13 13 13 13 13 1 1 1 1 1 1 1 1 1 1 450 258.93 258.93 261.15 265.67 2,267 2,373 2,439 2,468 2,507 170.3 174.0 176.4 176.6 176.6 21.5 21.5 21.5 21.5 21.5 119.3 102.1 102.6 103.5 102.6 215.0 220.6 224.5 225.3 226.6 112 DRAFT / 01202,r"., TABLE 17 DRAT / 0/2 0 2f CITY OF FARMERS BRANCH TEXAS TABLE 18 SCHEDULE OF INSURANCE POLICIES IN FORCE SEPTEMBER 30,2024 UNAUDITED AM BEST POLICY POLICY LIABILITY POLICY ISSUED BY RATING NUMBER PERIOD COVERAGE DEDUCTIBLES LIMITS Source: City of Farmers Branch Human Resources Department Notes: Claims Administrator - Workers' Compensation, TML Claims, 18601 LBJ Freeway, Suite 210, Town East Tower, Mesquite, Texas 75150. 113 Property & Auto = Texas Municipal League A- 04687 10/1/23-9/30/24 General Liability $ 100,000 $ 5,000,000 Intergovernmental Risk Pool Workers' Comp = A Real and Personal Property 5,000 As Scheduled Cyber = A Auto Liability 25,000 1,000,000 Auto Physical Damage 2,500 Per Schedule Law Enforcement Liability 100,000 10,000,000 Errors & Omissions 50,000 2,000,000 Mobile Equipment 5,000 As Scheduled Workers' Compensation N/A 350,000 *(SIR) 10/4/23-9130/24 Cyber Insurance - Core See Below Per Schedule Tower I Data & Network Liability Aggregate Limit 3,000,000 Tower I Media Liability Aggregate Limit 3,000,000 Tower II Business Interruption Loss Aggregate Sublimit 50,000 400,000 Tower II Cyber Extortion Aggregate Sublimit 40,000 200,000 Tower II Data Recovery Costs Aggregate Sublimit 40,000 400,000 Tower II Reputational Loss Aggregate Sublimit 40,000 100,000 Tower II Regulatory Defense and Penalties Aggregate Sublimit 40,000 600,000 Tower II Payment Card Liabilities & Costs Aggregate Sublimit 40,000 200,000 Tower II Fraudulent Instruction Aggregate Sublimit 15,000 150,000 Tower II Funds Transfer Fraud Aggregate Sublimit 15,000 150,000 Tower II Telephone Fraud Aggregate Sublimit 15,000 150,000 Tower II Criminal Reward Aggregate Sublimit 15,000 150,000 Tower III Breach Response Aggregate Limit 20,000 500,000 The Hartford Casualty Insurance Co. A+ 61 BSBJC9616 10/23123-10/23/24 Fidelity Bond for Finance Dir. 250,000 Mid -Continent Casualty Company A+IX 04 -TOP -000043224 1011/23-10/01/24 Pollution Liability 1,000,000 2,000,000 QBE Ins Corporation A LGS02069-22 111/24-12131124 Stop Loss Coverage 150,000 1,000,000 Source: City of Farmers Branch Human Resources Department Notes: Claims Administrator - Workers' Compensation, TML Claims, 18601 LBJ Freeway, Suite 210, Town East Tower, Mesquite, Texas 75150. 113 DRAFT 41101202.r.- CONTINUING FINANCIAL DISCLOSURE SECTION (Unaudited) The Continuing Financial Disclosure Section presents various financial data originally distributed in a debt official statement. The City is required to update financial tables originally distributed in a debt official statement within six months after the end of the fiscal year ending on or after September 30, 1999. The financial tables that follow are updated through September 30, 2024, from the last debt issues that were dated August 2022. This financial information is also sent to each nationally recognized municipal securities information repository ("NRMSIR") and to any state information depository ("SID") that is designated by the State of Texas and approved by the Securities and Exchange Commission ("SEC"). 114 DRAFT CITY OF FARMERS BRANCH, TEXA VALUATION, EXEMPTIONS, AND GENERAL OBLIGATION DEBT 'UNAUDITEDi 2024.2025 Market Valuation Established by DCAD $ 11,999,745,450 Less Exemptions/Reductions at 100% Market Value: Totally Exempt Parcels $ 604,089,500 Homestead 504,438,761 Capped Value Loss 435,449,997 Over 65 246,561,836 Freeport 196,155,482 Agricultural 27,261,237 Disabled Persons 11,379,681 Veteran 100% Disabled 12,559,026 Disabled Veterans 975,500 Prorated Total Exempt 499.129 Under 2500 810,010 Pollution Control 32,358,144 Mineral Rights 1,400 Total Exemptions 2,072,539,703 2024.2025 Net Taxable Assessed Valuation $ 9,927,205,747 City Funded Debt Payable from Ad Valorem Taxes $ 75,440,000 Less: Self Supporting Debt Series 2011 General Obligation Refunding Bonds (1) 1,155,000 Series 2022 Certificates of Obligation (2) 23,215,000 Net General Obligation Debt Payable from Ad Valorem Taxes $ 51,070,000 General Obligation Interest and Sinking Fund 1,288,920 Ratio of Gross General Obligation Tax Debt to Taxable Assessed Valuation 0.760% Ratio of Net General Obligation Tax Debt to Taxable Assessed Valuation 0.514% 2025 Estimated Population - 39,070 Per Capita Taxable Assessed Valuation - $254,088 Per Capita Funded Debt Payable from Ad Valorem Taxes - $1,307 Notes / 10/2 0 2 r-, TABLE CD -1 (1) This debt consists of General Obligation Refunding Bonds, Taxable Series 2011, which are self-supporting based upon amounts received under a Ground Lease Agreement (the "Lease") entered into by the City and the Dallas Stars, L.P., with respect to the Dallas Stars Ice Skating facility located in the City. Payments under the Lease are not pledged to the payment of the bonds. If the City determines not to use payments under the Lease, or if such amounts are insufficient to pay debt service on the bonds, the City will be required to assess an ad valorem tax to pay such obligations. (2) Debt service related to the Certificates are expected to be self -supported by The Multi -sport Complex Lease and Operation Agreement (the "Complex Lease") to be entered into between the City and the Dallas Stars, L.P. Payments under the Complex Lease are not pledged to the payment of the Certificates. If the City determines not to use payments under the Complex Lease to pay the debt service on the Certificates the City will be required to assess an ad valorem tax to pay such obligations. 115 DRAFT / 01202,r-. CITY OF FARMERS BRANCH TEXAS TABLE CD -2 TAXABLE ASSESSED VALUATIONS BY CATEGORY :UNAUDITED,, Real, Residential, Single Family Real, Residential, Multi -Family Real, Vacant Lotslrracts Real, Commercial Real, Industrial Real, Oil, Gas, and Other Mineral Reserves Real and Tangible Personal, Utilities Tangible Personal, Commercial Tangible Personal, Industrial Total Appraised Value Before Exmeptions Less: Total Exemptions/Reductions Taxable Assessed Value 2025 2022 2024 2021 2023 1.23% Amount % of Total Amount % of Total Amount % of Total $ 3,844,082,670 32.03%$ 3,400,539,400 30.67%$ 2,852,485,430 29.48% 2,067,321,710 17.23% 1,977,994,380 17.84% 1,741,961,480 18.00% 183,203,220 1.53% 178,235,680 1.61% 177,592,600 1.84% 4,262,714,340 35.52% 3,743,777,730 33.77% 3,341,712,310 34.53% 34,189,750 0.28% 31,106,870 0.28% 23,002,020 0.24% 1,400 0.00% 1,400 0.00% 1,400 0.00% 109,144,130 0.91% 109,249,730 0.99% 95,975,470 0.99% 1,278,294,800 10.65% 1,437,761,640 12.97% 1,262,178,500 13.04% 220,793,430 1.84% 207,985,080 1.88% 181,644,990 1.88% 11,999,745,450 100.00% 11,086,651,910 100.00% 9,676,554,200 100.00% 2,072,539,703 1,806,535,345 1,610,345,211 $ 9,927,205,747 $ 9,280,116,565 $ 8,066,208,989 Real, Oil, Gas, and Other Mineral Reserves Real and Tangible Personal, Utilities Tangible Personal, Commercial Tangible Personal, Industrial Total Appraised Value Before Exmeptions Less: Total Exemptions/Reductions Taxable Assessed Value 1,400 2022 1,400 2021 102,465,320 1.23% Amount % of Total Amount % of Total Real, Residential, Single Family $ 2,412,356,700 29.05% $ 2,144,776,600 28.24% Real, Residential, Multi -Family 1,441,680,070 17.36% 1,263,119,750 16.63% Real, Vacant Lotslrracts 192,020,310 2.31% 179,261,330 2.36% Real, Commercial 2,868,687,670 34.55% 2,587,208,370 34.06% Real, Industrial 23,531,410 0.28% 19,599,930 0.26% Real, Oil, Gas, and Other Mineral Reserves Real and Tangible Personal, Utilities Tangible Personal, Commercial Tangible Personal, Industrial Total Appraised Value Before Exmeptions Less: Total Exemptions/Reductions Taxable Assessed Value 1,400 0.00% 1,400 0.00% 102,465,320 1.23% 100,293,170 1.32% 1,097,355,400 13.22% 1,115,892,190 14.69% 165 067,350 1.99% 185,619,700 2.44% 8,303,165,630 100.00% 7,595,772,440 100.00% 1,351,826,875 1,344,344,545 $ 6,951,338,755 $ 6,251,427 895 Notes: Valuations shown are certified taxable assessed values reported by the Dallas Central Appraisal District (DCAD) to the State Comptroller of Public Accounts. Certified values are subject to change throughout the year as contested values are resolved and the DCAD updates records. DRAFT / 012021r.." CITY OF FARMERS BRANCH TEXAS TABLE CD -3 VALUATION AND GENERAL OBLIGATION DEBT HISTORY UNAUDITED' Notes: (1) Population based on North Central Texas Council of Governments (NCTCOG) original population estimates, with the exception of Fiscal Year 2020 and 2021, which are based on the estimated US Census.The US Census Bureau subsequently lowered their original 2020 population estimate in July 2021. Beginning in Fiscal Year 2022, the NCTCOG estimates published in January were used. The current fiscal year is a projection. (2) As reported by the Dallas Central Appraisal District on the City's Annual State Property Tax Reports; subject to change during the ensuing year. (3) Includes self-supporting debt Taxable Series 2011 General Obligation Refunding Bonds and Series 2022 Certificates of Obligation. Excludes direct placement offerings. 117 RATIO OF G.O. TAXABLE G.O. TAX DEBT TAX DEBT TO TAXABLE ASSESSED OUTSTANDING TAXABLE FISCAL ESTIMATED ASSESSED VALUATION AT END OF ASSESSED G.O. TAX DEBT YEAR POPULATION i 1 VALUATION PER CAPITA i2) YEAR I3) VALUATION (2', PER CAPITA (2)(3) 2021 35,991 $ 6,251,427,895 $ 173,694 $ 55,972,366 0.90% $ 1,555 2022 38,143 6,951,338,755 182,244 74,861,055 1.08% 1,963 2023 38,615 8,066,208,989 208,888 69,710,771 0.86% 1,805 2024 39,070 9,280,116,565 237,525 65,631,928 0.71% 1,680 2025 39,070 9,927,205,747 254,088 65,751,051 0.66% 1,683 Notes: (1) Population based on North Central Texas Council of Governments (NCTCOG) original population estimates, with the exception of Fiscal Year 2020 and 2021, which are based on the estimated US Census.The US Census Bureau subsequently lowered their original 2020 population estimate in July 2021. Beginning in Fiscal Year 2022, the NCTCOG estimates published in January were used. The current fiscal year is a projection. (2) As reported by the Dallas Central Appraisal District on the City's Annual State Property Tax Reports; subject to change during the ensuing year. (3) Includes self-supporting debt Taxable Series 2011 General Obligation Refunding Bonds and Series 2022 Certificates of Obligation. Excludes direct placement offerings. 117 DRAFT /1 0/202: CITY OF FARMERS BRANCH. TEXAS TABLE CD4 TAX RATE, LEVY, AND COLLECTION HISTORY LAST FIVE FISCAL YEARS UNAUDITED) FISCAL TAX GENERAL I & S TOTAL ADJUSTED YEAR RATE FUND FUND TAX LEVY 2021 $ 0.5890 $ 0.5062 $ 0.0828 $ 40,146,002 2022 0.5890 0.5272 0.0618 42,422,590 2023 0.5890 0.5308 0.5820 47,509,971 2024 0.5690 0.5204 0.0486 52,803,863 2025 0.5435 0.4893 0.0542 53,954,363 118 % CURRENT % TOTAL COLLECTIONS COLLECTIONS 100.02% 99.72% 100.49% 99.88% 105.13% 101.51% 99.70% 99.70% DRAFT 411O12O2E CITY OF FARMERS BRANCH. TEXAS TABLE CD -5 TEN LARGEST TAXPAYERS FISCAL YEAR 2025 iUNAUDITED� Source: Dallas County, "City Report of Property Value," City of Farmers Branch. The total certified taxable value for the 2024-25 fiscal year is $9,927,205,747.. 119 PERCENTAGE OF TOTAL TAXABLE CERTIFIED TAXPAYER NATURE OF PROPERTY VALUE TAXABLE VALUE WRIA 2017 LP Real Estate Development $ 199,500,000 2.01% JDFW Boardwalk LLC Real Estate Development 198,450,000 2.00% Luxia Gallery House LLC Apartment Complex 173,000,000 1.74% Royal TX Partners LLC Real Estate - Office/Showroom 136,000,000 1.37% UDR Canal I LLC Real Estate Development 128,000,000 1.29% Mercer Acquisition LLC Real Estate Development 113,500,000 1.14% VAF2 Mack Lakeside LLC Real Estate Development 106,000,000 1.07% Lakeview at Parkside Apartment Complex 102,000,000 1.03% International Plaza I Office Tower- Class A 101,000,000 1.02% 5005 LBJ Tower LLC Real Estate Development 99 926,650 1.01% $ 1,357,376,650 13.68% Source: Dallas County, "City Report of Property Value," City of Farmers Branch. The total certified taxable value for the 2024-25 fiscal year is $9,927,205,747.. 119 DRAFT /1 01202%r. - CITY OF FARMERS BRANCH. TEXAS TABLE CD -6 TAX ADEQUACY [UNAUDITED; 2025 Principal and Interest Requirements (1) $ 5,262,881 $0.0478 Tax Rate at 99% Collection Produces 5,267,772 Average Annual Principal and Interest Requirements, 2025-2047 (1) $ 2,786,137 $0.0296 Tax Rate at 99% Collection Produces 2,791,133 Maximum Annual Net Principal and Interest Requirements, 2028 $ 5,531,659 $0.0576 Tax Rate at 99% Collection Produces 5,533,127 Note: (1) Excludes self-supporting debt Taxable Series 2011 General Obligation Refunding Bonds and Series 2022 Certificates of Obligation for the Dallas Stars Multi -Sport Complex. 120 DRAFT 4/10/20 %11. CITY OF FARMERS BRANCH, TEXAS TABLE CD -7 GENERAL OBLIGATION DEBT SERVICE REQUIREMENTS UNAUDITED! LESS SELF- NET DEBT %OF FISCAL OUTSTANDING DEBT (1: SUPPORTING SERVICE PRINCIPAL YEAR PRINCIPAL INTEREST TOTAL DEBT Z REQUIREMENTS RETIRED 2025 $ 4,710,000 $ 2,791,254 $ 7,501,254 $ 2,238,374 $ 5,262,881 2026 4,945,000 2,690,168 7,635,168 2,243,218 5,391,950 2027 4,530,000 2,504,339 7,034,339 1,643,089 5,391,250 2028 4,850,000 2,320,246 7,170,246 1,638,586 5,531,660 2029 5,045,000 2,124,524 7,169,524 1,642,581 5,526,943 2030 4,355,000 1,942,254 6,297,254 1,639,996 4,657,256 2031 4,145,000 1,784,702 5,929,702 1,640,748 4,288,954 2032 4,310,000 1,628,565 5,938,565 1,639,434 4,299,131 2033 4,465,000 1,471,117 5,936,117 1,640,798 4,295,319 2034 4,180,000 1,320,071 5,500,071 1,639,746 3,860,325 2035 3,560,000 1,182,332 4,742,332 1,641,126 3,101,206 2036 3,690,000 1,050,634 4,740,634 1,639,749 3,100,885 2037 3,665,000 911,767 4,576,767 1,640,758 2,936,009 2036 3,805,000 769,753 4,574,753 1,638,603 2,936,150 2039 2,345,000 648,493 2,993,493 1,643,249 1,350,244 2040 1,505,000 566,218 2,071,218 1,640,418 430,800 2041 1,575,000 496,212 2,071,212 1,640,112 431,100 2042 1,650,000 422,893 2,072,893 1,642,093 430,800 2043 1,725,000 345,351 2,070,351 1,640,451 429,900 2044 1,805,000 263,431 2,068,431 1,640,031 428,400 2045 1,455,000 186,345 1,641,345 1,641,345 - 2046 1,525,000 114,274 1,639,274 1,639,274 2047 1,600,000 38,696 1,6386-96 1,638,696 - $ 75,440,000 $ 27,573,638 $ 103,013,638 $ 38,932,476 $ 64,081,162 31.92% 60.36% 82.98% 93.93% 100.00% Notes: (1) "General Obligation Bonds" do not include lease/purchase obligations. Debt includes premiums/discounts. (2) Self -Supporting Debt Taxable Series 2011 General Obligation Refunding Bonds and Series 2022 Certificates of Obligation for the Dallas Stars Multi -Sport Complex. IK DRAFT 4 /10/202f CITY OF FARMERS BRANCH, TEXAS TABLE CD -8 INTEREST AND SINKING FUND BUDGET PROJECTION 'UNAUDITED Net Tax Supported Debt Service Requirements, Fiscal Year Ending 9/30/2025 $ 5,262,881 Interest and Sinking Fund, 9/3012024 1,288,920 Budgeted Interest and Sinking Fund Tax Levy 4,883,000 Budgeted Penalty and Interest 3,100,000 9,271,920 Estimated Balance, 9/30/2025 $ 4,009,039 Note: (1) Excludes self-supporting debt Taxable Series 2011 General Obligation Refunding Bonds and Series 2022 Certificates of Obligation for the Dallas Stars Multi -Sport Complex. 122 DRAFT 4/1O/2O2f CITY OF FARMERS BRANCH TEXAS TABLE CD -9 COMPUTATION OF SELF-SUPPORTING DEBT (UNAUDITED'; Budgeted Fiscal Year 2025 Stars Center Revenues (1) $ 3,100,000 Less: Requirements for Taxable Series 2011 Bonds and Taxable 2022 Certificates 2,238,374 Balance Available for Other Purposes Notes: $ 861,626 (1) The General Obligation Refunding Bonds, Taxable Series 2011 refunded the Combination Tax and Revenue Certificates of Obligation, Taxable Series 2004 which were self-supporting general obligation debt based upon amounts received under the terms of a Ground Lease Agreement (the "Lease") between the City and the lessee, the Dallas Stars L.P. (the "Dallas Stars"), which Lease relates to the community -style recreational ice-skating and conference facility financed in part with the proceeds of the Series 2004 Taxable Certificates. The obligation of the Dallas Stars to make lease payments to the City to support the payment of the bonds is dependent on the satisfaction of certain ongoing requirements in the Lease. The City currently transfers Lease payments to the debt service fund to pay debt service on the bonds and anticipates it will continue to do so. If the City discontinues such transfers, the City will be required to assess an ad valorem tax for the payment of the Taxable Series 2011 Bonds. 123 DRAFT ^/1O/2O2E CITY OF FARMERS BRANCH TEXAS TABLE CD -10 HOTEL/MOTEL TAX REVENUE LAST TEN FISCAL YEARS UNAUDITEDi FISCAL HOTELIMOTEL NUMBER YEAR TAX REVENUE OF ROOMS 2015 $ 2,728,631 2,137 2016 2,959,667 2,137 2017 2,892,655 2,137 2018 2,849,666 1,957 2019 3,115,374 2,146 2020 1,794,067 2,272 2021 1,683,018 2,272 2022 2,913,839 2,273 2023 3,341,512 2,273 2024 3,515,051 2,159 124 DRAFT 411O12O2E CITY OF FARMERS BRANCH. TEXAS TABLE CD -11 HOTEL OCCUPANCY TAXPAYERS SEPTEMBER 30, 2024 'UNAUDITED: 125 NUMBER TAXES % OF HOTEL OF ROOMS PAID TOTAL Doubletree by Hilton Dallas Near the Galleria 290 $ 661,700 18.82% Sheraton Dallas Hotel by the Galleria 317 594,466 16.91% Renaissance Dallas North 337 529,414 15.06% Doubletree by Hilton Dallas -Farmers Branch 160 412,218 11.73% Hampton Inn & Suites 116 305,066 8.68% Holiday Inn Express & Suites 104 238,559 6.79% AIRNB- Avalara Varies 163,750 4.66% Candlewood Suites 86 155,579 4.43% Comfort Inn & Suites (aka Parkside Hotel) 106 129,409 3.68% Wyndam Corporation 350 118,851 3.38% Motel 6 Dallas 108 82,587 2.35% Super 8 North Dallas 51 39,818 1.13% ARYA (formerly Days Inn North Dallas) 51 34,654 0.99% Stripe Accounts -Short Term Rentals Varies 25,047 0.71% Extended Stay America #6069 83 23,933 0.68% 2,159 $ 3,515,051 100.00% 125 DRAFT / 0/202%11. CITY OF FARMERS BRANCH. TEXAS TABLE CD -12 CHANGES IN NET POSITION - GOVERNMENTAL ACTIVITIES FISCAL YEARS ENDED SEPTEMBER 30 (UNAUDITED')_ _ FISCAL YEARS ENDED SEPTEMBER 30 2024 2023 2022 2021 2020 REVENUES: Program revenues Charges for services $ 19,240,981 $ 27,271,284 $ 15,283,649 $ 16,709,860 $ 13,114,957 Operating grants and contributions 615,576 2,356,770 930,087 1,565,257 2,177,925 Capital grants and contributions 1,349,652 1,733,548 457,008 4,164,801 5,920,245 General revenues: Taxes: Property taxes, levied for general purposes 45,710,705 42,362,924 36,920,934 34,131,625 30,636,546 Property taxes, levied for debt service 4,451,622 4,799,484 4,414,339 4,973,900 4,443,207 Sales and use taxes 24,406,225 25,344,604 24,413,463 18,737,374 17,164,707 Hotel/moteltaxes 3,515,051 3,341,512 2,913,839 1,683,016 1,794,067 Franchise taxes 3,791,350 3,870,277 3,856,016 3,885,156 3,873,220 Tax increment financing 2,011,454 1,501,804 860,064 1,557,120 4,513,776 Investment income (loss) 7,459,624 5,280,165 (353,710) 1,031,746 2,393,143 Grants not restricted to a specific purpose 5,078,575 1,745,580 2,546,527 9,979,973 Gain onsalelretirementand miscellaneous 434,537 1,442,422 149,346 41,584 2,280,136 Total revenues 118,265.352 121050374 92,391,562 88,481,441 98,291,902 EXPENSES: General government 21,150,357 27,032,249 20,254,045 17,255,980 21,181,076 Publicsafety 38,959,551 36,077,852 24,240,573 26,422,950 29,902,691 Public works 15,389,261 24,718,438 14,182,657 14,984,662 12,899,719 Culture and recreation 18,277,084 16,848,177 16,005,075 13,626,946 14,243,692 Principal retirement 417,521 Interest on long-term debt 1,540,892 2,873,370 2,064,562 1,527,200 1,823,611 Unallocated depreciation 178,508 487.635 466,577 145,929. 185.799 Total expenses 95,495,653 108,037,721 77,631,010 73,963667 80,236,588 Change in net position before transfers 22,769,699 13,012,653 14,760,552 14,517,774 18,055,314 Transfers 5,143,651 5,117095 4,739,339 3,899,519 11,947,117 Change in net posifion 27,913,350 18,129,748 19,499,891 18,417,293 30,002,431 Net position—beginning 194,415,343 176,285,595 156,785,704 138,368,411 1013,365,980 Net position—ending $ 222,328,693 $ 194 415 343 $ 176,285,595 $ 156,785704 $ 136,368,411 126 DRAFT Al 0/202%c. CITY OF FARMERS BRANCH TEXAS TABLE CD -13 GENERAL FUND REVENUE AND EXPENDITURE HISTORY FISCALS YEARS ENDED SEPTEMBER 30 (UNAUDITED; 127 FISCAL YEARS ENDED SEPTEMBER 30 2024 2023 2022 2021 2020 REVENUES Property, sales, and franchise taxes $ 73,781,761 $ 71,389,979 $ 64,703,376 $ 56,693,276 $ 51,521,257 Licenses and permits 2,252,812 2,137,679 2,700,392 3,810,089 2,883,283 Charges for services 11,924,395 10,618,829 9,698,983 8,416,478 7,056,305 Fines and forfe'dures 2,061,087 1,147,804 1,159,482 1,447,925 1,560,596 Investment income Qoss) 3,455,945 2,426,916 (302,292) 272,084 1,026,467 Miscellaneous 76,826 235,435 78,887 36,370 63,699 Total revenues 93,552 826 87,956,642 78,038,828 70,676 222 64,111,607 EXPENDITURES General government 18,967,250 23,855,846 15,209,950 14,509,967 18,300,051 Public safety 36,291,073 32,755,001 28,891,395 27,236,275 28,555,541 Public works 10,673,908 9,863,308 9,564,782 10,067,222 9,623,549 Culture and recreation 13,880,029 13,016,008 12,543,218 14,063,704 11,275,025 Principal retirement 389,947 302,872 69,556 Interest and fiscal agent charges 21,997 28,465 Capital outlay 4,133,686 3,490,302 2,446,069 Total expenditures 84,357,890 83,283,337 68,753,435 65,877,168 67,754,166 Excess (deficiency) of revenues over (under) expenditures 9,194,936 4,673,305 9,285,393 4,799,054 (3,642,559:. OTHER FINANCING SOURCES (USES) Transfers in 5,593,900 5,929,100 5,307,900 5,013,400 4,787,700 Transfers out (8,107,463) (9,996,000) (8,469,700) (3,620,881) (3,875,700) Sale of capital assets/insurance recoveries 333,177 956,852 167,281 258,054 2,614,178 Issuance of SBITAs 245,460 640,087 Total other financing sources 1,934,926' 12,469,961; +2,994,519; 1,650,573 3,526,178 Net change in fund balance 7,260,010 2,203,344 6,290,874 6,449,627 (116,381) Fund balances—beginning 38,520,555 36,317,211 30,026,337 23,576,710 23,693,091 Fund balances—ending $ 45,780,565 $ 38,520,555 $ 36,317,211 $ 30,026,337 $ 23,576,710 127 DRAFT / 01209,r.. - CITY OF FARMERS BRANCH. TEXAS TABLE CD -14 MUNICIPAL SALES TAX HISTORY LAST FIVE FISCAL YEARS UNAUDITED; The sales tax breakdown for the City is as follows: Dallas Area Rapid Transit (DART) 1.00¢ City Sales and Use Tax 1.00¢ State Sales and Use Tax 6.25:: Total 8.25 128 % OF EQUIVALENT OF FISCAL TOTAL AD VALOREM AD VALOREM PER YEAR COLLECTED TAX LEVY TAX RATE CAPITA 2020 $ 17,164,707 46.08% $ 0.2762 $ 410.17 2021 18,737,374 50.89% 0.2997 520.61 2022 24,413,463 59.63% 0.3512 640.05 2023 25,344,604 53.35% 0.3142 656.34 2024 24,406,225 46.22% 0.2630 624.68 The sales tax breakdown for the City is as follows: Dallas Area Rapid Transit (DART) 1.00¢ City Sales and Use Tax 1.00¢ State Sales and Use Tax 6.25:: Total 8.25 128 DRAFT 4/1O/2O2E CITY OF FARMERS BRANCH, TEXAS TABLE CD -15 CURRENT INVESTMENTS SEPTEMBER 30, 2024 UNAUDITEDi 129 % OF PURCHASE MARKET DESCRIPTION OF INVESTMENT PORTFOLIO PRICE VALUE Municipal Obligations 31.43% $ 40,349,054 $ 41,084,340 Certificates of Deposit 46.11% 60,260,854 60,260,854 TexPool 22.07% 28,847,453 28,847,453 Depository 0.39% 503,834 503,834 100.00% $ 129,961,195 $ 130,696,481 129 DRAFT / 0/202%9.0 CITY OF FARMERS BRANCH. -T AILS TABLE CD -16 HISTORICAL WATER AND WASTEWATER USAGE LAST FIVE FISCAL YEARS UNAUDITED] Note: Total consumption represents total gallons of water purchased by the City. 130 WATER USAGE WASTE WATER CONSUMPTION AMOUNT IN GALLONS 10001 AMOUNT IN GALLONS 10_00; FISCAL TOTAL PEAK AVERAGE TOTAL YEAR CONSUMPTION DAY DAY USAGE 2020 2,780,257 13,428 7,617 1,666,056 2021 2,772,384 11,665 7,596 1,594,355 2022 2,756,901 14,379 7,553 1,525,702 2023 2,975,996 11,084 8,153 1,552,049 2024 3,426,434 12,620 9,387 1,751,762 Note: Total consumption represents total gallons of water purchased by the City. 130 DRAFT 411O12O2F CITY OF FARMERS BRANCH TEXAS TOP TEN WATER CONSUMERS SEPTEMBER 30, 2024 UNAUDITED) 131 TABLE CD -17 % OF 2023-24 TOTAL 2023-24 CONSUMPTION CONSUMER TYPE OF INDUSTRY ;GALLONS) FB Creek Partners (Cooks Creek Apts) Multi -Family Housing 37,285,000 Mansions at Mercer Crossing Real Estate 24,171,000 The Luxe at Mercer Crossing MuIG-Family Housing 23,795,000 Luxia Gallery House LLC MultkFamily Housing 23,574,000 Lakeview at Parkside MultWamily Housing 21,470,000 Wolfspeed Inc. Technology (Chipmaker) 21,362,000 VAF2 (Lakeside) LLC Real Estate 20,594,000 UDR Canal LLC Multi -Family Housing 19,847,000 Towers at Mercer Mul&Family Housing 19,704,000 LR Dal LLC Real Estate 19,336,000 131 TABLE CD -17 % OF TOTAL 2023-24 % OF CONSUMPTION REVENUES REVENUES 1.09% $ 241,419 1.23% 0.71% 386,870 1.97% 0.69% 350,013 1.78% 0.69% 457,987 2.33% 0.63% 362,467 1.85% 0.62% 212,850 1.09% 0.60% 347,922 1.77% 0.58% 310,130 1.58% 0.58% 309,842 1.58% 0.56% 215,797 1.10% DRAFT /1 01202.r1. - CITY OFFARMERS BRANCH TEXAS TABLE CD -18 MONTHLY WATER AND SEWER RATES LAST TEN FISCAL YEARS UNAUDITED`. OVERSIZED METER CHARGES: Meter Size Meter Charge 5/8" or 314" BASE 1" '$ 8.79 OVER FISCAL 2,000 NEXT 8,000 NEXT 10,000 20,000 YEAR -GALLONS 11! GALLONS GALLONS GALLONS 2015 $ 14.29 $ 3.89 $ 4.37 $ 4.54 2016 16.44 4.47 5.03 5.22 2017 17.92 4.87 5.48 5.69 2018 19.75 5.40 6.05 6.30 2019 20.94 5.72 6.41 6.68 2020 21.99 6.01 6.73 7.01 2021 21.99 6.01 6.73 7.01 2022 21.99 6.01 6.73 7.01 2023 10.99121.99 6.01 6.73 7.01 2024 21.99 6.01 6.73 7.01 OVERSIZED METER CHARGES: Meter Size Meter Charge 5/8" or 314" NIA 1" '$ 8.79 1 1/2" 17.59 2" 41.68 3" 219.48 4" 285.32 6" 438.91 8" 614.49 BASE OVER 2,000 NEXT 8,000 10,000 GALLONS GALLONS (2) GALLONS (2) $ 14.95 $ 2.03 $ 2.03 17.19 2.33 2.33 18.74 2.54 2.54 20.65 2.80 3.80 21.89 2.97 4.03 22.99 3.12 4.23 22.99 3.12 4.23 22.99 3.12 4.23 22.99 3.12 4.23 22.99 3.12 4.23 Notes: Rates are based on 3/4" and 5/8" meters, which are the standard household meter sizes. The City charges an additional rate for non-standard meter sizes. (1) In fiscal year 2023, the base water rate for residential customers was lowered to $10.99 effective for one year. (2) Private residents are not charged for sewer beyond 10,000 gallons. 132 DRAFT 41101202.r-., CITY OF FARMERS BRANCH_ TEXAS TABLE CD -19 CONDENSED STATEMENT OF WATER AND SEWER SYSTEM OPERATIONS FISCAL YEARS ENDED SEPTEMBER 30 +UNAUDITED' REVENUES Charges for services Investment income (loss) Miscellaneous Total revenues EXPENSES Personal services Materials and supplies Maintenance and utilities Purchase of water Sewage treatment Total expenses Net available for debt service CUSTOMERS 2024 2023 2022 2021 2020 $ 30,752,465 $ 30,366,063 $ 30,886,842 $ 27,321,970 $ 26,312,327 1,149,241 624,620 (339,664) (15,076) 188,591 12,251 44,782 7,658 16,355 31,901,706 31,002,934 30,591,960 27,314,552 26,517,273 2,527,873 2,458,272 1,681,001 1,932,363 2,263,041 288,771 315,268 286,416 265,954 256,041 2,092,424 1,559,905 1,748,986 1,443,145 1,198,884 7,060,234 6,803,355 6,668,954 5,658,171 5,424,919 5,526,428 5,224,506 4,615,631 4,782,110 4,188,084 17,495,730 16,361,306 15,000,988 14,081,743 13, 330,969 $ 14,405,976 $ 14,641,628 $ 15,590,972 $ 13,232,809 $ 13186,304_ 11,269 11,254 11,242 10,784 10,477 Notes: The above calculation of amounts available for payment of system debt service excludes non-cash expenses such as depreciation and amortization. Debt service payments are also excluded. Certain nonoperating revenue sources, principally investment income, are included. 133 DRAFT /1O/2O2E CITY OF FARMERS BRANCH, TEXAS TABLE CD -20 AUTHORIZED BUT UNISSUED GENERAL OBLIGATION BONDS :UNAUDITEDI AMOUNT DATE AMOUNT PREVIOUSLY UNISSUED PURPOSE AUTHORIZED AUTHORIZED ISSUED BALANCE Infrastructure 5/4/2024 $ 5,500,000 $ 5,500,000 $ 5,500,000 $ $ 5,500,000 COVERAGE AND FUND BALANCES (FYE 2024) As of September 30, 2024, the City has no water and sewer revenue bonds outstanding and no authorized but unissued revenue debt 134 DRAFT 4,/11J20�.` City of Farmers Branch, Texas Single Audit Reports September 30, 2024 DRAFT 4/11/202.,'. City of Farmers Branch, Texas Table of Contents September 30, 2024 Contents Schedule of Expenditures of Federal Awards............................................................................................. 1 Notes to the Schedule of Expenditures of Federal Awards....................................................................... 2 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 — Independent Auditor's Report ................................................................................................................... 3 Report on Compliance for the Major Federal Program; Report on Internal Control Over Compliance; and Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance — Independent Auditor's Report .............................................................................................. 5 Schedule of Findings and Questioned Costs.............................................................................................. 8 DRAFT 41111202,r-., City of Farmers Branch, Texas Schedule of Expenditures of Federal Awards Year Ended September 30, 2024 City of Farmers Branch, Teras Schedule of Expeaditures of Federal Awards The accompanying notes are an integral part of this Schedule. 1 Passed Federal Grantor/Pass-Through Grantor/ Federal Assistance Pass -Through Entity Through to Total Federal Program or Cluster Title Listing Identifying Number Subrecipients Expenditures Department of Commerce Direct Program: Economic Adjustment Assistance 11.307 $ - $ 673,664 Total Department of Commerce - 673,664 Department or Interior Passed through Rom Texas Parks & Wildlife Department Outdoor Recreation Acquisition, Development and Planning 15.916 N/A 615,509 Total Department of Interior 615,509 Department of Justice Direct Program: Bulletproof Vest Partnership Reimbursement Program 16.607 13,827 Total Department of Justice 13,827 Department of the Treasury Passed through from Texas Division of Emergency Management COVID•19 - Coronavirus State and Local Fiscal Recovery Funds 21.027 N/A 5,078,575 Passed through from Dallas County: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds 21.027 N/A 5,000 Total Department of the Treasury 5,083,575 Department of Energy Direct Program: Energy Efficiency and Conservation Block Grant Program 81.128 59,839 Total Department of Energy 59,839 Total Federal Awards Expended S - S 6,446,414 The accompanying notes are an integral part of this Schedule. 1 DRAFT 4/11/20-91.1. City of Farmers Branch, Texas Notes to the Schedule of Expenditures of Federal Awards Year Ended September 30, 2024 Note 1: Basis of Presentation The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of the City of Farmers Branch, Texas (City) under programs of the federal government for the year ended September 30, 2024. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net position, or cash flows of the City. Note 2: Summary of Significant Accounting Policies Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule, if any, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Note 3: Indirect Cost Rate The City has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. DRAFT 11202.r. Summary of Auditor's Results Financial Statements 1. Type of report the auditor issued on whether the financial statements audited were prepared in accordance with GAAP: ® Unmodified ❑ Qualified ❑ Adverse ❑ Disclaimer 2. Internal control over financial reporting: Significant deficiency(ies)? ❑ Yes ® None reported Material weakness(es)? ❑ Yes ® No 3. Noncompliance material to the financial statements noted? ❑ Yes ® No Federal Awards 4. Internal control over major federal award program: Significant deficiency(ies)? ❑ Yes ® None reported Material weakness(es)? ❑ Yes ® No 5. Type of auditor's report issued on compliance for major federal program: ® Unmodified ❑ Qualified ❑ Adverse ❑ Disclaimer 6. Any audit findings disclosed that are required to be reported by 2 CFR 200.516(a)? ❑ Yes ® No 7. Identification of major federal program: Cluster/Program ALN Number COVID-19 - Coronavirus State and Local Fiscal Recovery Funds 21.027 8. Dollar threshold used to distinguish between Type A and Type B Programs: $750,000 9. Auditee qualified as a low-risk auditee? ® Yes ❑ No DRAFT 41111202.E.: City of Farmers Branch, Texas Schedule of Findings and Questioned Costs (Continued) Year Ended September 30, 2024 Section II — Financial Statement Findings Reference Number No matters are reportable. Findin Section III — Federal Award Findings and Questioned Costs Reference Number Finding No matters are reportable.