HomeMy WebLinkAboutCity Packets - City Council - 08/01/2023 - RegularAgenda Item No:1.5
CITY COUNCIL Agenda Item Report
Meeting Date: August 1, 2023
Submitted by: Kimberly Thompson
Submitting Department: City Secretary
Item Type: Discussion
Agenda Section:
Subject:
Items of Community Interest
Suggested Action:
Attachments:
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Agenda Item No:1.6
CITY COUNCIL Agenda Item Report
Meeting Date: August 1, 2023
Submitted by: Kimberly Thompson
Submitting Department: City Secretary
Item Type: Presentation
Agenda Section:
Subject:
Receive presentation from Parks and Recreation regarding upcoming events and activities. (Stansell)
Suggested Action:
Attachments:
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Agenda Item No:3.1
CITY COUNCIL Agenda Item Report
Meeting Date: August 1, 2023
Submitted by: Lindsey Stansell
Submitting Department: Parks & Recreation
Item Type: Discussion
Agenda Section:
Subject:
Receive a presentation, discuss and provide direction to staff regarding special events. (Stansell)
Suggested Action:
Attachments:
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Agenda Item No:3.2
CITY COUNCIL Agenda Item Report
Meeting Date: August 1, 2023
Submitted by: Ron Hartline
Submitting Department: Engineering
Item Type: Discussion
Agenda Section:
Subject:
Receive a presentation, discuss and provide direction to staff regarding the Street Condition Index Study.
(Hartline)
Suggested Action:
Attachments:
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Agenda Item No:3.3
CITY COUNCIL Agenda Item Report
Meeting Date: August 1, 2023
Submitted by: Tina Stewart
Submitting Department: Parks & Recreation
Item Type: Discussion
Agenda Section:
Subject:
Discussion on the sale of parkland and related issues. (Shallenburger)
Suggested Action:
Attachments:
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Agenda Item No:3.4
CITY COUNCIL Agenda Item Report
Meeting Date: August 1, 2023
Submitted by: Kimberly Thompson
Submitting Department: City Secretary
Item Type: Discussion
Agenda Section:
Subject:
Council to provide direction to staff regarding future agenda items. (Council)
Suggested Action:
Attachments:
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Agenda Item No:4.1
CITY COUNCIL Agenda Item Report
Meeting Date: August 1, 2023
Submitted by: Kimberly Thompson
Submitting Department: City Secretary
Item Type: Minutes
Agenda Section:
Subject:
Consider approving City Council Regular Session meeting minutes from July 18, 2023. (Stewart)
Suggested Action:
Attachments:
July 18 , 2023 DRAFT Minutes.docx
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1 These items are strictly public service announcements. Expressions of thanks, congratulations or condolences; information
regarding holiday schedules; honorary recognition of city officials, employees or other citizens; reminders about upcoming
events sponsored by the City or other entity that are scheduled to be attended by a city official or city employee. No action
will be taken and no direction will be given regarding these items.
MINUTES OF THE CITY COUNCIL REGULAR SESSION
HELD ON
JULY 18, 2023
The Regular Session of the City Council of the City of The Colony, Texas, was called to order
at 6:30 p.m. on the 18
th day of July, at City Hall, 6800 Main Street, The Colony, Texas, with
the following roll call:
Richard Boyer, Mayor
Judy Ensweiler, Councilmember
Robyn Holtz, Councilmember
Brian Wade, Mayor Pro Tem
David Terre, Councilmember
Perry Schrag, Deputy Mayor Pro Tem
Joel Marks, Councilmember
Present
Present
Present
Present
Present
Present
Present
And with 7 councilmembers present a quorum was established and the following items were
addressed:
1.0 ROUTINE ANNOUNCEMENTS, RECOGNITIONS and PROCLAMATIONS
1.1 Call to Order
Mayor Boyer called the meeting to order at 6:30 p.m.
1.2 Invocation
Councilman Terre delivered the invocation.
1.3 Pledge of Allegiance to the United States Flag
The Pledge of Allegiance to the United States Flag was recited.
1.4 Salute to the Texas Flag
Salute to the Texas Flag was recited.
1.5 Budget Award Presentation.
Assistant City Manager, Tim Miller, presented the Budget Award to the Finance
Department and thanked staff for their efforts. Interim Finance Director, Cheryl
Fields, accepted the award on behalf of the department.
Councilman Marks arrived at 6:34 p.m.
1.6 Items of Community Interest
Police Chief, David Coulon, recognized newly appointed Assistant Police Chief,
Matt Winnett.
1.6.1 Receive presentation from the Library regarding upcoming events and activities.
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City Council – Regular Meeting Agenda
July 18, 2023
Page| 2
Library Director, Megan Charters, provided upcoming events and activities to the
Council.
2.0 CITIZEN INPUT
Connie Hudson, 5913 Carroll Drive, invited City Council to an election fraud/voter
hand count seminar. She stated that the event will be held at The Shepherd’s House
in Lewisville on August 4, 2023 at 7:00 p.m.
3.0 WORK SESSION
3.1 Receive a presentation from JPI regarding Public Finance Corporations (PFC's) and
Workforce Housing.
JPI Representative, Miller Sylvan, presented an overview on this item.
3.2 Discuss and receive direction on the reallocation of previously approved Capital
Project funds to be used in the repair and renovations of the recently purchased
school facility.
Deputy City Manager, Brant Shallenburger, gave an overview of this item.
Council provided discussion and directed staff to provide line items on the
construction and/or remodel regarding the funds.
3.3 Discuss and receive direction on a request from Beach Club HOA to have the city
change from a master meter to individual meters.
Assistant City Manager, Tim Miller, provided an overview on the item.
3.4 Discussion on property taxation.
City Attorney, Jeff Moore with Brown & Hofmeister, L.L.P., presented this item to
Council.
3.5 Council to provide direction to staff regarding future agenda items.
None.
4.0 CONSENT AGENDA
Motion to approve all items from the Consent Agenda with the exception of Agenda Item No 4.1
– Marks; second by Schrag, motion carried with all ayes.
4.1 Consider approving City Council Special Session meeting minutes and Regular
Session meeting minutes from June 20, 2023.
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City Council – Regular Meeting Agenda
July 18, 2023
Page| 3
Motion to approve amendments as discussed- Ensweiler; second by Holtz, motion carried with
all ayes.
4.2 Consider approving Council expenditures for May 2023.
4.3 Consider accepting Jan Partin's resignation from the Library Board.
4.4 Consider approving an ordinance extending the term of the existing franchise
agreement with CoServ Gas Company ending December 31, 2048.
ORDINANCE NO. 2023-2518
4.5 Consider approving a resolution authorizing the City Manager to deny Oncor
Electric Delivery Company LLC's request to amend distribution rates.
RESOLUTION NO. 2023-048
5.0 REGULAR AGENDA ITEMS
5.1 Conduct a public hearing, discuss, and consider an ordinance regarding
amendments to Appendix A, Section 10A of the Code of Ordinances of the City of
The Colony, Texas, by amending Section 10A-300, District Boundaries.
Director of Planning, Isaac Williams, presented the proposed ordinance
amendments to Council.
The public hearing opened at 8:02 p.m. and closed at 8:05 p.m.
Denise Feeney, 5532 Rutledge, appeared and spoke in favor of this item.
Alex Eicke, 7305 Elm Street, appeared and spoke in favor of this item.
Motion to approve – Ensweiler; second by Holtz, motion carried with all ayes.
ORDINANCE NO. 2023-2519
5.2 Conduct a public hearing, discuss and consider an ordinance regarding amendments
to Planned Development-21 (PD-21) District (Ordinance no. 06-1650), by
amending Exhibit C, to reflect amended development boundaries, additional RV
campgrounds, parking fields, dry storage units and beach improvements for an
approximately 680 acre area known as Hidden Cove Marina, located at 20400
Hackberry Creek Road within Planned Development 21 (PD-21).
Director of Planning, Isaac Williams, presented the proposed ordinance
amendments to Council.
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City Council – Regular Meeting Agenda
July 18, 2023
Page| 4
The public hearing opened and closed at 8:11 p.m. with no speakers.
Motion to approve – Terre; second by Marks, motion carried with all ayes.
ORDINANCE NO. 2023-2520
5.3 Conduct a public hearing on short-term rentals.
Deputy City Manager, Joe Perez, gave an overview of short-term rentals.
The public hearing opened at 8:15 p.m. and closed at 8:29 p.m.
Annalisa Fink, 3809 Overlook Court, appeared and spoke on this item.
AB Martin of 4008 Steepleridge Drive appeared and spoke on this item.
5.4 Discuss and consider a resolution authorizing the City Manager to execute a
construction services contract with JBM Excavation for “Onsite Hypochlorite
Generation” in the amount of $588,641.00 for Water System Improvements
Treatment Facility.
Director of Public Works, James Whitt, provided an overview of this item.
Motion to approve – Schrag; second by Marks, motion carried with all ayes.
RESOLUTION NO. 2023-049
5.5 Discuss and consider a resolution authorizing the City Manager to execute a Private
Transfer Agreement (Grant by Special Warranty Deed) by and between The Colony
Local Development Corporation and LMG Ventures, LLC, conveying Lot 2R,
Block C, Grandscape Addition, Phase II, an addition to the City of The Colony,
Denton County, Texas.
Executive Business Liaison, Jeremie Maurina, gave an overview of this item.
Motion to approve – Ensweiler; second by Marks, motion carried with all ayes.
RESOLUTION NO. 2023-050
5.6 Discuss and consider appointing members to various boards and commissions.
Motion to approve the appointment of Cynthia Worthen to Place 2 on the Library Board –
Ensweiler; second by Terre, motion carried with all ayes.
Executive Session was convened at 8:48 p.m.
6.0 EXECUTIVE SESSION
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City Council – Regular Meeting Agenda
July 18, 2023
Page| 5
6.1 A. Council shall convene into a closed executive session pursuant to Sections
551.072 and 551.087 of the Texas Government Code to deliberate regarding
purchase, exchange, lease or value of real property and commercial or financial
information the city has received from a business prospect(s), and to deliberate the
offer of a financial or other incentive to a business prospect(s).
B. Council shall convene into a closed executive session pursuant to Section
551.071 of the Texas Government Code to seek legal advice from the city attorney
regarding pending or contemplated litigation regarding structure generally located
at 5800 Truitt, The Colony, Texas.
Regular Session was reconvened at 9:36 p.m.
7.0 EXECUTIVE SESSION ACTION
7.1 A. Any action as a result of executive session regarding purchase, exchange, lease
or value of real property and commercial or financial information the city has
received from a business prospect(s), and the offer of a financial or other incentive
to a business prospect(s).
No Action
B. Any action as a result of executive session regarding pending or contemplated
litigation regarding structure generally located at 5800 Truitt, The Colony, Texas.
Motion to authorize the City Attorney's Office to file and prosecute a Chapter 54
Cause of Action or similar action against the property at 5800 Truitt, The Colony,
Texas- Wade; second by Schrag, motion carried with all ayes.
ADJOURNMENT
With there being no further business to discuss the meeting adjourned at 9:37 p.m.
APPROVED:
__________________________________
Richard Boyer, Mayor
City of The Colony, Texas
ATTEST:
_____________________________________
Tina Stewart, TRMC, CMC, City Secretary
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Agenda Item No:4.2
CITY COUNCIL Agenda Item Report
Meeting Date: August 1, 2023
Submitted by: Tina Stewart
Submitting Department: City Secretary
Item Type: Ordinance
Agenda Section:
Subject:
Consider and ratify approval of an ordinance extending the term of the existing franchise agreement with Atmos
Energy Corporation ending December 31, 2048. (Moore)
Suggested Action:
Attachments:
Ordinance No. 2023-2518.pdf
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Agenda Item No:5.1
CITY COUNCIL Agenda Item Report
Meeting Date: August 1, 2023
Submitted by: Tina Stewart
Submitting Department: Finance
Item Type: Presentation
Agenda Section:
Subject:
Presentation by Weaver and Tidwell regarding the Annual Comprehensive Financial Report for the 2022 Fiscal
Year. (Miller)
Suggested Action:
Attachments:
Annual Comprehensive Financial Report FY 2022.pdf
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The Colony, Texas
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FISCAL YEAR ENDED SEPTEMBER 30, 2022
STEWART
CREEK
PARK
PUBLIC
SAFETY
LAKE FRONT
HOTELS
SHOPS
THIS CITY IS BOOMING
GRANDSCAPE
SPORTS
DINING
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CITY OF THE COLONY, TEXAS
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022
As Prepared By
The Finance Department
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CITY OF THE COLONY, TEXAS
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022
TABLE OF CONTENTS
Exhibit / Table Page
INTRODUCTORY SECTION
Letter of Transmittal vii
Certificate of Achievement xi
Organizational Chart xii
City Officials Chart xiii
FINANCIAL SECTION
Independent Auditor’s Report 3
MANAGEMENT'S DISCUSSION AND ANALYSIS 9
BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements
Statement of Net Position 1 23
Statement of Activities 2 24
Governmental Fund Financial Statements
Balance Sheet 3 28
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position 4 29
Statement of Revenues, Expenditures, and Changes in Fund Balance 5 30
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statements of Activities 6 31
Proprietary Fund Financial Statements
Statement of Net Position 7 34
Statement of Revenues, Expenses, and Changes in Fund Net Position 8 36
Statement of Cash Flows 9 37
Discretely Presented Component Units Financial Statements
Statement of Net Position 10 41
Statement of Activities 11 42
Notes to Financial Statements 47
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Changes in Net Pension Liability and Related Ratios – TMRS A - 1 88
Schedule of Pension Contributions – TMRS A - 2 89
Schedule of Changes in Total OPEB Liability and Related Ratios – TMRS A - 3 90
Schedule of OPEB Contributions – TMRS A - 4 91
General Fund Schedule of Revenues, Expenditures and Changes
in Fund Balances – Budget and Actual A - 5 92
Notes to Budgetary comparison schedule 93
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CITY OF THE COLONY, TEXAS
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022
TABLE OF CONTENTS
Exhibit / Table Page
COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES
Major Governmental Funds
Budgetary Comparison Schedule – Debt Service Fund B - 1 97
Nonmajor Governmental Funds
Combining Balance Sheet C - 1 100
Combining Statement of Revenues, Expenditures, and Changes in Fund Balance C - 2 102
Lake Parks Fund - Budgetary Comparison Schedule C - 3 104
Special Events Fund - Budgetary Comparison Schedule C - 4 105
Hotel / Motel Taxes Fund - Budgetary Comparison Schedule C - 5 106
Child Safety Fund - Budgetary Comparison Schedule C - 6 107
Storm Water Utilities Fund - Budgetary Comparison Schedule C - 7 108
Discretely Presented Component Units
Balance Sheet – The Colony Economic Development Corporation F - 1 110
Reconciliation of the Governmental Funds Balance Sheet to the Statement
of Net Position- The Colony Economic Development Corporation F - 2 111
Statement of Revenues, Expenditures and Changes in Fund
Balances - The Colony Economic Development Corporation F - 3 112
Reconciliation of the Statements of Revenues, Expenditures and Changes in Fund
Balances of Governmental Funds to the Statement
of Activities - The Colony Economic Development Corporation F - 4 113
Balance Sheet - The Colony Community Development Corporation F - 5 114
Reconciliation of the Governmental Funds Balance Sheet to the Statement
of Net Position - The Colony Community Development Corporation F - 6 115
Statement of Revenues, Expenditures and Changes in Fund
Balances - The Colony Community Development Corporation F - 7 116
Reconciliation of the Statement of Revenues, Expenditures and Changes
in Fund Balances of Governmental Funds to the Statement
of Activities - The Colony Community Development Corporation F - 8 117
Balance Sheet - The Colony Local Development Corporation F - 9 118
Reconciliation of the Governmental Funds Balance Sheet to the Statement
of Net Position - The Colony Local Development Corporation F - 10 119
Statement of Revenues, Expenditures and Changes
in Fund Balances - The Colony Local Development Corporation F - 11 120
Reconciliation of the Statement of Revenues, Expenditures and Changes
in Fund Blanaces of Governmental Funds to the Statement
of Activities - The Colony Local Development Corporation F - 12 121
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CITY OF THE COLONY, TEXAS
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022
TABLE OF CONTENTS
Exhibit / Table Page
STATISTICAL SECTION
Net Position By Component 1 126
Changes in Net Position 2 128
Fund Balances, Governmental Funds 3 132
Changes in Fund Balances, Governmental Funds 4 134
Assessed Value and Estimated Actual Value of Taxable Property 5 136
Direct and Overlapping Property Tax Rates 6 137
Principal Tax Payers 7 138
Ad Valorem Tax Levies and Collections 8 140
Ratio of Outstanding Debt by Type 9 141
Ratio of General Bonded Debt Outstanding 10 142
Legal Debt Margin Information 11 143
Direct and Overlapping Governmental Activities Debt 12 144
Pledged-Revenue Coverage 13 145
Demographic and Economic Statistics 14 146
Principal Employers 15 147
Full-Time Equivalent City Government Employees by Function/Program 16 149
Operating Indicators by Function/Program 17 150
Capital Asset Statistics by Function/Program 18 152
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INTRODUCTORY SECTION
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June 20, 2023
The Honorable Mayor and Members of the City Council City of The Colony, Texas
The Finance Department of the City of The Colony is pleased to submit the Annual Comprehensive
Financial Report of the City of The Colony, Texas, for the fiscal year ended September 30, 2022.
This report is published to provide the City Council, Management Staff, our Citizens and other
interested parties with detailed information concerning the financial condition and performance of
the City Government. Responsibility for the accuracy and completeness of the presented data and
the fairness of the presentation, including all disclosures, rests with the City of The Colony.
Management assumes full responsibility for the completeness and reliability of the information
contained in this report, based upon a comprehensive framework of internal controls established for
this purpose. Because the cost of internal control should not exceed anticipated benefits, the
objective is to provide reasonable, rather than absolute, assurance that the financial statements are
free of any material misstatements.
THE REPORT
The Financial Section includes the Management's Discussion and Analysis (MD&A) and basic
financial statements. This section also includes the auditor's report on the basic financial
statements. The MD&A provides narrative introduction, overview, and analysis. This letter of
transmittal is designed to complement the MD&A and should be read in conjunction with it. The
Statistical Section includes selected tables of comparative economic and financial data, generally
presented on a multi-year basis, as well as demographic and other pertinent miscellaneous and
operational statistics.
The Financial Statements included in this report were prepared in accordance with accounting
principles generally accepted in the United States of America for local governments as prescribed
by the Governmental Accounting Standards Board (GASB), The National Council on
Governmental Accounting (NCGA), and the American Institute of Certified Public Accountants
(AICPA). The financial statements have been audited by the independent accounting firm of
Certified Public Accountants, Weaver and Tidwell, L.L.P., whose report is included herein.
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POPULATION
The City's population has grown steadily since the early 2000's and is currently estimated at
55,000. Most recent residential growth is due to continued development at the Tribute (formerly
known as Wynnewood Peninsula) and Austin Ranch just south of SH121.
The City's 2022 Ad Valorem tax base increased from the prior year by a little over 4% or $241
million to $5.967 billion.
Sales tax revenues in the General Fund increased by $1.7 million or 17.5% from the previous year
due to increased and new economic activity as more retail and entertainment options are opened
in The Colony. Sales tax represents approximately 19% of the City's General Fund total income.
Water and sewer revenues in 2021-2022 increased by about $3.2 million dollars to $25.6 million
due primarily to drier summer months resulting in more water usage.
Ad Valorem Tax Rate
Ad Valorem tax rate was reduced from $.6600 to $.6550 per $100 valuation for fiscal year
2021-22. Council's expectation is to continue to reduce the tax rate as additional revenues from
growth and increased property valuations permit.
Fund Balance - General Fund
Reserves in the General Fund increased by a little over $7.1 million from the prior fiscal year to a
little over $30.1 million or 172 operating days. Council's goal is 90 days.
Fund Balance - Other Funds
All other fund reserves increased by about $5.4 million during the fiscal year to just over
$33.5 million.
PROSPECT FOR THE FUTURE
The Colony's prospects for the future are promising and very optimistic. Most recent economic
drivers are:
The Nebraska Furniture Mart TIRZ was established November 2011 for a 433 acre $1.5 billion
Grandscape development. The Nebraska Furniture Mart store, the anchor store of the development,
opened in early March 2015. The site has remained viable, and revenue producing even through the
pandemic and has seen numerous new stores open in the past year, to include entertainment, dining,
and retail offerings on the site.
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In June 2020, Scheels opened the largest sporting goods store in the World offering 85 specialty
shops. Numerous restaurants and a hotel have also located in the Zone. On the north side of SH121,
in The Colony and across from Grandscape, Rooms To Go, Mattress Firm, and Floor and Decor
have opened. Other new commercial development on the north side of SH121 in the City include
Topgolf, numerous hotels, a medical office building, couple of shopping centers, and several
restaurants and other businesses. Business activity has brought numerous jobs to the City. The
Nebraska Furniture Mart store itself employs around 1,800 people.
The Tribute, the only remaining sizeable residential development in the City, continues to increase
the number of buildable lots. Housing permits have remained strong for the past couple of years
and are expected to do so for the next several years.
FINANCIAL MANAGEMENT
The Colony continues to evaluate operating activity to help ensure services are provided as
efficiently as possible. Service levels are reviewed in conjunction with revenues, expenses, and
reserves to help ensure the best possible use is made of available resources.
Long-term Financial Planning
The budget process provides a road map for short-term and long-term needs and aids in the
allocation of limited resources to prioritized services and needs. Each year a Capital Improvement
Program is developed which helps gauge future funding priorities and is the foundation on which
annual budgets are built. Revenues, expenses, and capital needs are projected for each of the five
following years to identify service needs and financing available. Staff helps Council with the
challenge of prioritizing and providing efficient and effective services to the community with
current and future available funds.
As a combined effort, the City Manager's Office, Finance Director, and all departments monitor
revenues and expenditures throughout the year. Appropriate actions are taken to control
expenditures, and to make adjustments when revenues fall short of expectations.
Relevant Financial Policies
The City has strong financial management policies that provide the basis for the City's financial
operations.
The City's goal is to always maintain at 80 operating days in unassigned fund balance for the general
fund, and 60 operating days in water and sewer unrestricted net positions.
AWARDS
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 The Colony;
Texas, for its annual comprehensive financial report for the fiscal year ended September 30, 2021.
(This was the 31st consecutive year that The Colony has achieved this prestigious award.)
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A Certificate of Achievement is valid for a period of one year only. We believe that our current
annual comprehensive financial report continues to meet the Certificate of Achievement Program's
requirements and we are submitting it to the GFOA to determine its eligibility for another
certificate.
In addition, the government also received the GFOA' s Distinguished Budget Presentation Award
for its annual budget document for the year beginning October 1 , 2020. The City has received the
award annually since the budget year beginning on October 1, 1993. In order to qualify for the
Distinguished Budget Presentation Award, the government's budget document was judged to be
proficient in several categories, including as a policy document, a financial plan, an operation
guide, and a communications device.
ACKNOWLEDGEMENTS
The preparation of this report on a timely basis could not have been accomplished without the
efficient and dedicated services of the entire staff of the Finance Department. We would also like
to thank the Mayor and City Council for their interest and leadership in planning and conducting
the financial operations of the City of The Colony in a responsible and progressive manner.
Respectfully submitted,
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CITY OF THE COLONY, TEXAS
ORGANIZATIONAL CHART
SEPTEMBER 30, 2022
Ci
t
i
z
e
n
s
o
f
T
h
e
C
o
l
o
n
y
City
Council
Municipal
Court Judge
City
Secretary
City Attorney
Boards/
Commissions
City
Manager
Assistant City
Manager
Director of Finance
Director of Engineering
Director of Customer Service
Director of Public Services
Director of Human
Resources
Security Advisor
Library Director
Deputy City Manager
Director of Information
Technology
Director of Community
Services
CVB and Communications
Court Administrator
Facilities Director
Communications Manager
Police Chief
Fire Chief
Director of Economic
Development
Deputy City
Manager
Community Image Manager
Animal Services Director
Planning Director
Executive Business Liaison
Outside Agencies
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CITY OF THE COLONY, TEXAS
CITY STAFF
SEPTEMBER 30, 2022
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FINANCIAL SECTION
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Weaver and Tidwell, L.L.P.
2300 North Field Street, Suite 1000 | Dallas, Texas 75201
Main: 972.490.1970
CPAs AND ADVISORS | WEAVER.COM
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Independent Auditor’s Report
To the Honorable Mayor,
City Council, and City Manager
City of the Colony, Texas
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business-type activities, the
aggregate discretely presented component units, each major fund, and the aggregate remaining fund
information of the City of The Colony, Texas (the City), as of and for the year ended September 30, 2022,
and the related notes to the financial statements, which collectively comprise the City’s basic financial
statements as listed in the table of contents.
In our opinion, the accompanying financial statements present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, the aggregate
discretely presented component units, each major fund, and the aggregate remaining fund information
of the City, as of September 30, 2022, and the respective changes in financial position and, where
applicable, cash flows thereof for the year then ended in accordance with accounting principles
generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America (GAAS) and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements
section of our report. We are required to be independent of the City and to meet our other ethical
responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe
that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinions.
Emphasis of Matter
As discussed in Note 1 to the basic financial statements, during the year ended September 30, 2022, the
City implemented Governmental Accounting Standards Board (GASB) Statement No. 87, Leases. Our
opinions are not modified with respect to this matter.
Responsibilities of Management for the Financial Statements
The City’s management is responsible for the preparation and fair presentation of the financial statements
in accordance with accounting principles generally accepted in the United States of America, and for
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error. In preparing the financial statements, management is required to evaluate whether there are
conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to
continue as a going concern for twelve months beyond the financial statement date, including any
currently known information that may raise substantial doubt shortly thereafter.
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The Honorable Mayor,
City Council, and City Manager
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Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance
and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect
a material misstatement when it exists. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control. Misstatements are considered material if
there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment
made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such procedures
include examining, on a test basis, evidence regarding the amounts and disclosures in the
financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is
expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the City’s ability to continue as a going concern for a
reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control–related
matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the required
supplementary information, such as management’s discussion, budgetary comparison information, and
the TMRS and OPEB schedules be presented to supplement the basic financial statements. Such
information is the responsibility of management and, although not a part of the basic financial
statements, is required by the Governmental Accounting Standards Board who considers it to be an
essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context.
We have applied certain limited procedures to the required supplementary information in accordance
with auditing standards generally accepted in the United States of America, which consisted of inquiries
of management about the methods of preparing the information and comparing the information for
consistency with management’s responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an opinion
or provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance.
48
The Honorable Mayor,
City Council, and City Manager
5
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s basic financial statements. The other supplementary information, such as the
combining and individual fund financial statements and schedules, is presented for purposes of
additional analysis and are not a required part of the basic financial statements.
The other supplementary information is the responsibility of management and was derived from and
relates directly to the underlying accounting and other records used to prepare the basic financial
statements. Such information has been subjected to the auditing procedures applied in the audit of the
basic financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the basic financial
statements or to the basic financial statements themselves, and other additional procedures in
accordance with auditing standards generally accepted in the United States of America. In our opinion,
the other supplementary information is fairly stated, in all material respects, in relation to the basic
financial statements as a whole.
Other Information Included in the Annual Comprehensive Financial Report (ACFR)
Management is responsible for the other information ACFR. The other information comprises the
introductory section and statistical section and but does not include the financial statements and our
auditor's report thereon. Our opinions on the financial statements do not cover the other information, and
we do not express an opinion or any form of assurance thereon. In connection with our audit of the
financial statements, our responsibility is to read the other information and consider whether a material
inconsistency exists between the other information and the financial statements, or the other information
otherwise appears to be materially misstated. If, based on the work performed, we conclude that an
uncorrected material misstatement of the other information exists, we are required to describe it in our
report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
June 20, 2023, on our consideration of the City’s internal control over financial reporting and on our tests
of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters.
The purpose of that report is solely to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on the
effectiveness of internal control over financial reporting or on compliance. That report is an integral part
of an audit performed in accordance with Government Auditing Standards in considering the City’s
internal control over financial reporting and compliance.
WEAVER AND TIDWELL, L.L.P.
Dallas, Texas
June 20, 2023
49
6 50
7
MANAGEMENT’S DISCUSSION
AND ANALYSIS
51
8 52
CITY OF THE COLONY
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
9
The City of The Colony (the City) is providing this narrative overview and analysis of its financial activities
for the fiscal year ended September 30, 2022. This Management’s Discussion and Analysis (MD&A)
provides additional information that was not contained in the Letter of Transmittal. Readers are advised to
read both to gain understanding of the financial picture of the City. This discussion and analysis includes
prior year data for comparison purposes.
Financial Highlights
The City’s total assets and deferred outflows of resources exceeded the City’s total liabilities and
deferred inflows of resources at the close of the fiscal year by $349,330,683. Of this amount
$23,254,184 (unrestricted net position) may be used to meet the government’s ongoing
obligations to citizens and creditors.
The government’s total net position increased by $13,413,928 which was primarily due to
developer contributions for both governmental and business-type activities and an increase of
general fund operations.
At the end of the current fiscal year, the City’s governmental funds reported combined ending
fund balances of $63,653,069, an increase of $12,643,012. The general fund reported an increase
in fund balance of $7,192,879. The capital projects fund had an increase in fund balance of
$2,935,107 primarily due to issuance of debt and contributions that exceeded capital outlay. Out
of the $63,653,069 of fund balances in the governmental funds, $23,811,978 is available for
spending at the government’s discretion (unassigned fund balance).
At the end of the current fiscal year, unassigned fund balance for the general fund was
$23,834,380 or 52.70% of total general fund expenditures.
The City’s non-current liabilities increased by $5,766,316 (4%) during the current fiscal year which
included an increase in certificate of obligation and general obligation bonds outstanding of
$9,610,000. The City issued $20,375,000 of Combination Tax and Limited Surplus Revenue
Certificates of Obligation bonds during 2022.
Overview of the Financial Statements
The MD&A serves as an introduction to the City’s basic financial statements. The City’s basic financial
statements comprise three components:
1. Government-wide financial statements
2. Fund financial statements
3. Notes to the financial statements
The report also contains other supplementary information in addition to the basic financial statements.
53
CITY OF THE COLONY
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
10
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.
The statement of net position presents information on all of the City’s assets and deferred outflows of
resources and liabilities and deferred inflows of resources, with the difference 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
most recent fiscal year. All changes in net position are reported as incurred regardless of when cash is
received or paid. Thus, revenues and expenses are reported on accrual basis even though cash flows
occur in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).
Both of the government-wide financial statements distinguish functions of the City that are principally
supported by taxes and intergovernmental revenues (governmental activities) from other functions that
are intended to recover all or a significant portion of their costs through user fees and charges (business-
type activities). The governmental activities of the City include general government, public safety, streets,
sanitation, and culture and recreation. The business-type activities of the City include water and
sewerage operation.
The government-wide financial statements include not only the City itself (known as the primary
government), but also a legally separate economic development corporation, legally separate community
development corporation, and a legally separate local development corporation, for which the City of The
Colony is financially accountable. Financial information for these component units is reported separately
from the financial information presented for the primary government itself.
In the Statement of Net Position and the Statement of Activities, the City is divided into three kinds of
activities:
Governmental Activities – Most of the City’s basic services are reported as governmental
activities, including the general government, public safety, municipal court, public works, culture
and recreation, planning and zoning, public improvements, and code enforcement. Taxes and
intergovernmental revenues principally support these services.
Business-type Activities – Functions that are intended to recover all or a significant portion of their
costs through user fees and charges are considered business-type activities. The business-type
activities of the City include Water and Sewer Utility.
Component Units – The City includes three separate legal entities, The Colony Economic
Development Corporation, The Colony Community Development Corporation, and The Colony
Local Development Corporation in its report. Although they are legally separate, they are included
as component units because the City is accountable for them. Financial information for these
component units is reported separately from the financial information presented for the primary
government.
54
CITY OF THE COLONY
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
11
Fund Financial Statements
A fund is a grouping of related accounts that is 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:
1. 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 near-term inflows and outflows of spendable resources, as well as on
balances of spendable resources available at the end of the fiscal year. Such information may be
useful in evaluating a government’s near-term 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 fund balance sheet and the governmental fund
statement of revenues, expenditures, and changes in fund balances provide a reconciliation to
facilitate this comparison between governmental funds and governmental activities.
The City maintains 19 individual governmental funds. Information is presented separately in the
governmental funds balance sheet and in the governmental funds statement of revenues,
expenditures, and changes in fund balances for the General Fund, the Debt Service Fund, the
Capital Projects Fund, and the Pandemic Response Fund all of which are considered to be major
funds. Non-major governmental funds are aggregated in total.
The City adopts annual appropriated budgets for its General Fund, Debt Service Fund, Lake
Parks Fund, Special Events Fund, Hotel/Motel Taxes Fund, Child Safety Fund, and Storm Water
Utility Fund. The budgetary comparison schedules have been provided for these funds to
demonstrate compliance with the budgets.
2. 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 sewer operation. Proprietary funds provide the same type of
information as the government-wide financial statements, only in more detail. The water and
sewer utility fund is considered to be a major fund of the City.
55
CITY OF THE COLONY
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
12
Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in
the government-wide and fund financial statements.
Other information
In addition to the basic financial statements and accompanying notes, this report also presents certain
required supplementary information concerning the City. This MD&A is part of the required
supplementary information.
Government-wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government’s financial
position. As of the close of the current fiscal year, the City’s net position totaled $349,330,683.
The largest portion of the City’s net position (89%) reflects its investment in capital assets (e.g., land,
buildings, machinery, and equipment); less any related debt used to acquire those assets that is still
outstanding. The City uses these capital assets to provide services to citizens; consequently, these
assets are not available for future spending. Although the City’s investment in its capital assets is reported
net of related debt, it should be noted that the resources needed to repay this debt must be provided from
other sources, since the capital assets themselves cannot generate revenues to liquidate these liabilities.
An additional portion of the City’s net position (5%) represents resources that are subject to external
restrictions on how they may be used (primarily for debt service and infrastructure improvements). The
remaining balance of net position ($23,254,184) may be used to meet the government’s ongoing
obligations to citizens and creditors.
Net Position
2022 2021 2022 2021 2022 2021
Current and other assets 86,020,064$ 63,985,118$ 27,777,283$ 27,822,393$ 113,797,347$ 91,807,511$
Capital assets 253,971,749 247,733,677 158,084,014 154,277,982 412,055,763 402,011,659
Total assets 339,991,813 311,718,795 185,861,297 182,100,375 525,853,110 493,819,170
Deferred outflows of resources 4,427,330 4,368,028 977,422 1,213,970 5,404,752 5,581,998
Long-term liabilities outstanding 81,612,377 77,552,135 68,137,541 66,431,467 149,749,918 143,983,602
Other liabilities 17,786,902 12,892,698 2,863,047 3,795,973 20,649,949 16,688,671
Total liabilities 99,399,279 90,444,833 71,000,588 70,227,440 170,399,867 160,672,273
Deferred inflows of resources 10,686,813 2,446,440 840,499 365,700 11,527,312 2,812,140
Net position:
Net investment in capital assets 204,399,731 200,374,394 105,648,298 105,104,226 310,048,029 305,478,620
Restricted 14,669,601 12,718,867 1,358,869 1,074,088 16,028,470 13,792,955
Unrestricted 15,263,719 10,102,289 7,990,465 6,542,891 23,254,184 16,645,180
Total net position 234,333,051$ 223,195,550$ 114,997,632$ 112,721,205$ 349,330,683$ 335,916,755$
Governmental Activities Business-type Activities Total
At the end of the current fiscal year, the City has positive balances in all three categories of net position,
for the government as a whole, as well as for its separate governmental and business-type activities.
56
CITY OF THE COLONY
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
13
The City’s net position increased by $13,413,928. Total assets increased by $32,033,940. Capital assets
increased by $10,044,104, while current and other assets increased by $21,989,836.
Change in Net Position
2022 2021 2022 2021 2022 2021
Revenues:
Program revenues:
Charges for services 8,585,665$ 7,783,482$ 25,610,329$ 22,386,290$ 34,195,994$ 30,169,772$
Operating grants and contributions 723,463 352,792 - - 723,463 352,792
Capital grants and contributions 4,821,561 6,233,192 2,929,119 3,836,581 7,750,680 10,069,773
General revenues:
Property taxes 38,701,240 36,510,300 - - 38,701,240 36,510,300
Sales taxes 11,426,569 9,721,676 - - 11,426,569 9,721,676
Franchise taxes 2,873,419 2,517,283 - - 2,873,419 2,517,283
Other taxes 1,937,274 1,044,987 - - 1,937,274 1,044,987
Interest 563,141 123,312 262,050 20,069 825,191 143,381
Miscellaneous 5,196,325 1,715,059 - - 5,196,325 1,715,059
Total revenues 74,828,657 66,002,083 28,801,498 26,242,940 103,630,155 92,245,023
Expenses:
General government 15,353,052 15,835,564 - - 15,353,052 15,835,564
Public safety 26,743,262 25,340,611 - - 26,743,262 25,340,611
Public works 11,016,099 10,425,482 - - 11,016,099 10,425,482
Culture and recreation 7,391,239 7,818,786 - - 7,391,239 7,818,786
Interest on long-term debt 3,087,504 1,825,404 - - 3,087,504 1,825,404
Water and sewer - - 26,625,071 27,240,190 26,625,071 27,240,190
Total expenses 63,591,156 61,245,847 26,625,071 27,240,190 90,216,227 88,486,037
Increase (decrease) in net position
before transfers 11,237,501 4,756,236 2,176,427 (997,250) 13,413,928 3,758,986
Transfers (100,000) (400,000) 100,000 400,000 - -
Increase (decrease) in net position 11,137,501 4,356,236 2,276,427 (597,250) 13,413,928 3,758,986
Beginning net position (October 1)223,195,550 218,839,314 112,721,205 113,318,455 335,916,755 332,157,769
Ending net position (September 30)234,333,051$ 223,195,550$ 114,997,632$ 112,721,205$ 349,330,683$ 335,916,755$
Governmental Activities Business-type Activities Total
57
CITY OF THE COLONY
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
14
Governmental Activities - Governmental activities increased the City’s net position by $11,137,501
compared to an increase of $4,356,236 in the prior year primarily due to a $2,190,940 increase in property
tax revenue and a $1,704,893 increase in sales tax.
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
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EXPENSE AND PROGRAM REVENUE - GOVERNMENTAL
ACTIVITIES
Expenses
Program Revenue
Business-type Activities - Business-type activities increased the City’s net position by $2,276,427. The
overall increase in net position is primarily due to operating income of $1,176,660, as operating expenses
decreased by $606,530 while operating revenues increased by $3,224,039.
$25,500,000
$26,000,000
$26,500,000
$27,000,000
$27,500,000
$28,000,000
$28,500,000
$29,000,000
Water and sewer
EXPENSE AND PROGRAM REVENUE - BUSINESS TYPE ACTIVITIES
Operating Expenses
Program Revenue
58
CITY OF THE COLONY
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
15
88.9%
1.1%
6.5%
3.7%
Revenue by Source - Business Type Activities
Charges for services
Investment Income
Grants and contributions
Development fees
Financial Analysis of the Government’s Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-
related legal requirements.
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 available for spending 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 $63,653,069 an increase of $12,643,012 in comparison with the prior year. Approximately
37.41% of this total amount ($23,811,978) constitutes unassigned fund balance, which is available for
spending at the City’s discretion. The remainder of fund balance is not available for new spending
because it has already been committed, restricted, or is nonspendable for:
1. Capital projects ($23,279,419) including infrastructure projects to be funded with
intergovernmental revenues,
2. Debt service ($5,416,036),
3. Development of the community ($465,547) including restrictions for the City’s PID No. 1,
4. Storm drainage maintenance projects ($1,167,281),
5. To encourage tourism in the City ($6,980,745),
6. Various purposes ($689,072) including court technology, support for police, and child safety,
7. Committed for maintenance and enhancement projects for parks ($1,658,047),
8. Nonspendable inventory and prepaid items ($184,944).
59
CITY OF THE COLONY
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
16
The General Fund is the chief operating fund of the City. At the end of the current fiscal year, unassigned
fund balance of the General Fund was $23,834,380. As a measure of the General Fund’s liquidity, it may
be useful to compare unassigned fund balance to total fund expenditures. Unassigned fund balance
represents 52.70% of total general fund expenditures (excluding transfers to other funds).
The fund balance of the City’s General Fund increased by $7,192,879 during the current fiscal year due
to an excess of revenues over expenditures of $7,469,959; primarily due to a $1.7 million increase in
sales tax taxes, the result of the strong economy, and a $1.6 million increase in property taxes, the result
of increased assessed valuation of property.
The Debt Service Fund has a total fund balance of $5,416,036, all of which is restricted for the payment
of debt service. The increase in fund balance during the current year in the Debt Service Fund was
$1,973,932, the result of the increased assessed valuation of property mentioned above. The City has a
dedicated property tax for general debt service. The property tax produced debt service fund revenues
of $9,546,147 in the current fiscal year while debt service payments for principal and interest on debt
were $7,654,253.
The Capital Projects Fund has a total fund balance of $23,279,419, with majority of fund balance as
restricted for future expenditures of currently-approved capital items. The $2,935,107 increase in fund
balance during the year was attributable to the net effect of the Capital Projects Fund’s portion of the
issuance of new bonds and capital outlay.
The Pandemic Response Fund has a total fund balance of $72, which is restricted grant funding. There
was no change in the fund balance during the year.
Proprietary funds. The City’s proprietary funds provide the same type of information found in the
governmental-wide financial statements, but in more detail. Operating revenues in the water and sewer
fund totaled $25,610,329, an increase of $3,224,039 from the prior year due to an increase in water
consumption. Operating expenses totaled $24,433,669, a decrease of $606,530 driven by a decrease in
maintenance costs.
General Fund Budgetary Highlights
During the year, there was a slight increase in appropriations of $3,338,571 between the original and
final budget. Overall, revenues had a $6,583,024 positive variance primarily due to receiving more sales
tax revenue and licenses and permits due to the effects of more activity. There was a favorable variance
of $2,795,522 between final budget and actual expenditures which was primarily due to cost savings
experienced in several departments.
Capital Asset and Debt Administration
Capital assets. The City’s investment in capital assets for its governmental and business-type activities
as of September 30, 2022, amounts to $412,055,763 (net of accumulated depreciation and amortization).
This investment in capital assets includes land, buildings and system, water and sewer system
infrastructure improvements, machinery and equipment, park facilities, and roads. The City’s overall
investment in capital assets for the current fiscal year equaled $24,148,118 for governmental and
business-type activities with depreciation expense of $15,369,654 being consistent with the capital asset
additions.
60
CITY OF THE COLONY
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
17
Major capital asset events during the current fiscal year included the following:
Developer contributions for the City’s infrastructure of $5 million.
Construction in progress additions of $2.6 million for development of streets.
Fire Station #5 Building project of $3.9 million.
The completion of the Phase VIII Street project of $4.2 million, the Grandscape/Cascades Trails
project of $1.8 million, Wastewater Treatment Plant Expansion project of $12.5 million, Water
Extend Austin Ranch Force project of $2.5 million that started in prior years.
Capital Assets
(Net of Depreciation and Amortization)
2022 2021 2022 2021 2022 2021
Capital Assets Being Depreciated/Amortized:
Water systems -$ -$ 63,686,694$ 62,400,812$ 63,686,694$ 62,400,812$
Sanitary sewer systems - - 80,871,183 70,504,512 80,871,183 70,504,512
Drainage system - - 28,754 32,338 28,754 32,338
Buildings 25,330,524 26,403,845 130,479 137,822 25,461,003 26,541,667
Improvements other than buildings 14,149,925 11,139,379 - - 14,149,925 11,139,379
Aquatic Park 788,003 622,607 - - 788,003 622,607
Machinery and equipment 6,267,442 7,125,734 1,428,827 1,557,100 7,696,269 8,682,834
Infrastructure 166,515,693 165,141,746 7,284,697 7,641,799 173,800,390 172,783,545
Right-to-use assets 1,059,233 - - - 1,059,233 -
214,110,820$ 210,433,311$ 153,430,634$ 142,274,383$ 367,541,454$ 352,707,694$
Capital Assets Not Being Depreciated:
Land and land improvements 4,510,684$ 4,510,684$ 3,273,473$ 3,273,472$ 7,784,157$ 7,784,156$
Right-of-ways 25,571,036 25,571,036 - - 25,571,036 25,571,036
Construction in progress 9,779,209 7,218,646 1,379,907 8,730,127 11,159,116 15,948,773
39,860,929$ 37,300,366$ 4,653,380$ 12,003,599$ 44,514,309$ 49,303,965$
Governmental Activities Business-type Activities Totals
Additional information on the City’s capital assets can be found in Note 4 on pages 64-66 to the basic
financial statements.
Outstanding Debt
2022 2021 2022 2021 2022 2021
General Obligation Bonds 10,288,768$ 12,823,723$ 10,921,232$ 14,046,277$ 21,210,000$ 26,870,000$
Certificates of Obligation 55,142,250 45,567,200 51,212,750 45,517,800 106,355,000 91,085,000
Lease Payables 1,053,988 - - - 1,053,988 -
Financed Purchases 472,961 698,539 - - 472,961 698,539
66,957,967$ 59,089,462$ 62,133,982$ 59,564,077$ 129,091,949$ 118,653,539$
Government Activities Business-type Activities Total
61
CITY OF THE COLONY
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
18
Long-term debt. At the end of the current fiscal year, the City had total bonded debt outstanding of
$127,565,000. The entire amount represents debt backed by the full faith and credit of the City. The City
also had leases payable of $1,053,988 and financed purchase liabilities of $472,961 at fiscal year-end.
The City’s total long-term liabilities from bonded debt, leases, and financed purchases increased by
$10,438,410 during the current fiscal year. The City made debt principal payments of $11,202,229 and
issued debt for $21,640,639.
Additional information on the City’s long-term debt can be found in Note 5 on pages 67-74 to the basic
financial statements.
The City’s general and revenue obligations maintain an AA+ rating, respectively, from Standard & Poor’s
and an Aa3 rating respectively from Moody’s Investors Service. The high rating speaks well of the City’s
proactive approach to economic development and financial management.
The revenue supported debt in the Water and Sewer Fund is limited to the net revenues equal to at least
1.10 times the maximum annual principal and interest requirements and 1.25 times the average annual
principal and interest requirements of all parity bonds to be outstanding.
Economic Factors and Next Year’s Budgets and Rates
Total current Ad Valorem Taxes budgeted for fiscal year 2023 are $40,185,832 which is a $1.4
million increase from the prior year. This is due mostly to an increase in the City’s residential tax
base of about $242 million, offset by a reduction in the tax rate from 65.00 to 64.50 cents per $100
dollars of valuation.
Total sales tax is projected to remain strong due to continued economic growth from commercial
construction.
Requests for Information
This financial report is designed to provide a general overview of the City’s finances. Questions
concerning any of the information provided in this report or requests for additional financial information
should be addressed to the Finance Director, The City of The Colony, 6800 Main Street, The Colony,
Texas 75056.
62
19
BASIC FINANCIAL STATEMENTS
63
20
64
21
GOVERNMENT – WIDE
FINANCIAL STATEMENTS
65
22
66
EXHIBIT 1
CITY OF THE COLONY, TEXAS
STATEMENT OF NET POSITION
SEPTEMBER 30, 2022
The Notes to Financial Statements are
an integral part of this statement.
23
GOVERNMENTAL BUSINESS-TYPE COMPONENT
ACTIVITIES ACTIVITIES TOTAL UNITS
ASSETS
Cash and cash equivalents 75,160,548$ 21,107,075$ 96,267,623$ 31,703,046$
Receivables (net of allowance for uncollectibles) 10,674,572 2,936,826 13,611,398 4,235,698
Inventories 150,963 78,085 229,048 -
Prepaid expenses 33,981 1,236 35,217 3,570,965
Restricted:
Cash and cash equivalents - 3,654,061 3,654,061 32,180,954
Capital assets:
Non-depreciable 39,860,929 4,653,380 44,514,309 28,677,089
Depreciable (net of depreciation) 213,051,587 153,430,634 366,482,221 -
Right-to-use assets (net of amortization) 1,059,233 - 1,059,233 -
TOTAL ASSETS 339,991,813 185,861,297 525,853,110 100,367,752
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding 168,028 397,860 565,888 359,636
Deferred outflows - OPEB 269,278 36,706 305,984 -
Deferred outflows - pensions 3,990,024 542,856 4,532,880 -
TOTAL DEFERRED OUTFLOWS OF RESOURCES 4,427,330 977,422 5,404,752 359,636
LIABILITIES
Accounts payable and accrued liabilities 6,123,199 854,208 6,977,407 2,917,892
Accrued interest payable 339,471 - 339,471 5,335,134
Retainage payable 291,360 - 291,360 -
Unearned revenue 11,032,872 - 11,032,872 -
Payable from restricted assets:
Accounts payable and accrued liabilities - 769,856 769,856 -
Accrued interest payable - 324,808 324,808 -
Customer meter deposits - 914,175 914,175 -
Non-current liabilities:
Due within one year 8,462,155 6,122,406 14,584,561 4,365,576
Due in more than one year 73,150,222 62,015,135 135,165,357 192,556,136
TOTAL LIABILITIES 99,399,279 71,000,588 170,399,867 205,174,738
DEFERRED INFLOWS OF RESOURCES
Deferred inflows- leases 4,509,247 - 4,509,247 -
Deferred inflows - OPEB 79,181 10,794 89,975 -
Deferred inflows - pensions 6,098,385 829,705 6,928,090 -
TOTAL DEFERRED INFLOWS OF RESOURCES 10,686,813 840,499 11,527,312 -
NET POSITION (DEFICIT)
Net investment in capital assets 204,593,915 105,648,298 310,242,213 (139,587,171)
Restricted for:
Debt service 5,124,388 - 5,124,388 -
Government funded construction contracts 242,568 1,358,869 1,601,437 -
Other 9,302,645 - 9,302,645 -
Unrestricted 15,069,535 7,990,465 23,060,000 35,139,821
TOTAL NET POSITION (DEFICIT) 234,333,051$ 114,997,632$ 349,330,683$ (104,447,350)$
PRIMARY GOVERNMENT
67
CITY OF THE COLONY, TEXAS
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2022
The Notes to Financial Statements are
an integral part of this statement.
24
Charges for Operating Grants Capital Grants
Expenses Services and Contributions and Contributions
Functions/Program Activities
PRIMARY GOVERNMENT:
Governmental Activities:
General government 15,353,052$ 2,469,376$ 406,522$ 952,021$
Public safety 26,743,262 2,199,583 51,981 -
Public works 11,016,099 2,819,164 - 3,868,808
Culture and recreation 7,391,239 1,097,542 264,960 732
Interest on long-term debt 3,087,504 - - -
Total governmental activities 63,591,156 8,585,665 723,463 4,821,561
Business-type Activities:
Water and sewer 26,625,071 25,610,329 - 2,929,119
Total business-type activities 26,625,071 25,610,329 - 2,929,119
TOTAL PRIMARY GOVERNMENT 90,216,227$ 34,195,994$ 723,463$ 7,750,680$
COMPONENT UNITS:
The Colony Economic
Development Corporation 4,417,801$ -$ -$ -$
The Colony Community
Development Corporation 3,093,909 - - -
The Colony Local Development
Corporation 6,775,248 - 1,867,951 -
TOTAL COMPONENT UNITS 14,286,958$ -$ 1,867,951$ -$
General Revenues and Transfers:
Taxes:
Property taxes, levied for general purposes
Sales taxes
Franchise taxes
Hotel/motel taxes
Penalties and interest
Interest on investments
Miscellaneous
Transfers
Total general revenues and transfers
CHANGE IN NET POSITION
NET POSITION (DEFICIT), beginning of year
NET POSITION (DEFICIT), end of year
Program Revenues
68
EXHIBIT 2
25
Governmental Business - Type Component
Activities Activities Total Units
(11,525,133)$ -$ (11,525,133)$ -$
(24,491,698) - (24,491,698) -
(4,328,127) - (4,328,127) -
(6,028,005) - (6,028,005) -
(3,087,504) - (3,087,504) -
(49,460,467) - (49,460,467) -
- 1,914,377 1,914,377 -
- 1,914,377 1,914,377 -
(49,460,467)$ 1,914,377$ (47,546,090)$ -$
-$ -$ -$ (4,417,801)$
- - - (3,093,909)
- - - (4,907,297)
-$ -$ -$ (12,419,007)$
38,701,240$ -$ 38,701,240$ -$
11,426,569 - 11,426,569 28,449,861
2,873,419 - 2,873,419 -
1,937,274 - 1,937,274 -
106,926 - 106,926 -
456,215 262,050 718,265 195,352
5,196,325 - 5,196,325 3,363
(100,000) 100,000 - -
60,597,968 362,050 60,960,018 28,648,576
11,137,501 2,276,427 13,413,928 16,229,569
223,195,550 112,721,205 335,916,755 (120,676,919)
234,333,051$ 114,997,632$ 349,330,683$ (104,447,350)$
Net (Expense) Revenue and
Changes in Net Position
Primary Government
69
26
70
27
GOVERNMENTAL FUNDS FINANCIAL STATEMENTS
71
EXHIBIT 3
CITY OF THE COLONY, TEXAS
BALANCE SHEET
GOVERNMENTAL FUNDS
SEPTEMBER 30, 2022
The Notes to Financial Statements are
an integral part of this statement.
28
OTHER TOTAL
DEBT CAPITAL PANDEMIC GOVERNMENTAL GOVERNMENTAL
GENERAL SERVICE PROJECTS RESPONSE FUNDS FUNDS
ASSETS
Cash and cash equivalents 31,688,715$ 5,411,546$ 24,759,426$ 8,592,594$ 4,708,267$ 75,160,548$
Receivables, net of allowances for
uncollectibles:
Ad valorem taxes 354,781 52,763 - - - 407,544
Service accounts receivable 173,231 - - - - 173,231
Franchise taxes 632,588 - - - - 632,588
Sales taxes 4,235,698 - - - - 4,235,698
Other 3,352,432 - - - 1,873,079 5,225,511
Due from other funds 13,102 - - - - 13,102
Prepaid 33,165 - - - 816 33,981
Inventory 150,963 - - - - 150,963
TOTAL ASSETS 40,634,675$ 5,464,309$ 24,759,426$ 8,592,594$ 6,582,162$ 86,033,166$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
LIABILITIES
Accounts payable and accrued liabilities 4,675,151$ 450$ 1,188,647$ -$ 258,951$ 6,123,199$
Retainage payable - - 291,360 - - 291,360
Due to other funds - - - - 13,102 13,102
Unearned revenue 2,440,350 - - 8,592,522 - 11,032,872
TOTAL LIABILITIES 7,115,501 450 1,480,007 8,592,522 272,053 17,460,533
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources- leases 3,038,214 - - - 1,471,033 4,509,247
Unavailable resources - property taxes 323,751 47,823 - - - 371,574
Unavailable resources - other 38,743 - - - - 38,743
TOTAL DEFERRED INFLOWS OF RESOURCES 3,400,708 47,823 - - 1,471,033 4,919,564
FUND BALANCES (DEFICIT)
Nonspendable 184,128 - - - 816 184,944
Restricted:
Capital projects - - 23,279,419 - - 23,279,419
Debt service - 5,416,036 - - - 5,416,036
Other 6,099,958 - - 72 3,202,615 9,302,645
Committed - - - - 1,658,047 1,658,047
Unassigned 23,834,380 - - - (22,402) 23,811,978
TOTAL FUND BALANCES (DEFICIT)30,118,466 5,416,036 23,279,419 72 4,839,076 63,653,069
TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES (DEFICIT)40,634,675$ 5,464,309$ 24,759,426$ 8,592,594$ 6,582,162$ 86,033,166$
72
EXHIBIT 4
CITY OF THE COLONY, TEXAS
RECONCILIATION OF THE BALANCE SHEET OF
GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION
SEPTEMBER 30, 2022
The Notes to the Financial Statements are
an integral part of this statement.
29
Total fund balances - governmental funds 63,653,069$
Amounts reported for governmental activities in the statement of net position
are different because:
Capital assets (net of accumulated depreciation/amortization) used in governmental
activities are not current financial resources and, therefore, are not reported in the
governmental funds balance sheet. 253,971,749
Interest payable on long-term debt does not require current financial resources,
therefore, interest payable is not reported as a liability in the governmental
funds balance sheet. (339,471)
Revenues earned but not available within sixty days of the year end are not
recognized as revenue on the fund financial statements. 410,317
Deferred outflows of resources of $3,990,024 related to the City's net pension liability
increase net position in the government-wide financial statements, while
deferred inflows ($6,098,385) reduce it. This amount is the net effect. (2,108,361)
Deferred outflows of resources of $269,278 related to the City's total OPEB liability
increase net position in the government-wide financial statements, while
deferred inflows ($79,181) reduce it. This amount is the net effect. 190,097
Deferred charges on refunding of long-term debt are reported as deferred outflows
of resources in the government-wide financial statements, but are not reported
in the governmental funds. 168,028
Long-term liabilities, including bonds payable, are not due and payable in the current period
and, therefore, are not reported in the fund financial statements. Long-term liabilities
at year end consist of:
Bonds payable (65,431,018)
Net pension liability (4,058,332)
Total OPEB liability (1,187,693)
Financed purchase payable (472,961)
Lease payable (1,053,988)
Premium on issuance of debt (6,025,409)
Compensated absences (3,382,976)
Net position of governmental activities 234,333,051$
73
EXHIBIT 5
CITY OF THE COLONY, TEXAS
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
The Notes to the Financial Statements are
an integral part of this statement.
30
OTHER TOTAL
DEBT CAPITAL PANDEMIC GOVERNMENTAL GOVERNMENTAL
GENERAL SERVICE PROJECTS RESPONSE FUNDS FUNDS
REVENUES
Ad valorem taxes, penalties and interest 29,245,888$ 9,546,147$ -$ -$ -$ 38,792,035$
Franchise taxes 2,873,419 - - - - 2,873,419
Municipal sales tax 11,426,569 - - - - 11,426,569
Licenses and permits 2,757,342 - - - 1,757,906 4,515,248
Charges for services 1,941,188 - - - 958,994 2,900,182
Fines and forfeitures 1,087,855 - - - 77,132 1,164,987
Grants 406,265 - - - 51,981 458,246
Gifts and contributions 943,857 - 572,168 - 102,063 1,618,088
Hotel / Motel taxes - - - - 1,937,274 1,937,274
Intergovernmental - - 5,906 - - 5,906
Investment income 374,332 65,246 - - 16,637 456,215
Miscellaneous 1,639,392 - 3,412,795 - 144,138 5,196,325
Total revenues 52,696,107 9,611,393 3,990,869 - 5,046,125 71,344,494
EXPENDITURES
Current
General government 9,598,794 - 6,067 - 1,599,477 11,204,338
Public safety 26,577,967 - 190,000 - 89,505 26,857,472
Public works 4,108,137 - 2,522,881 - 777,939 7,408,957
Cultural and recreation 4,623,933 - - - 2,139,431 6,763,364
Capital outlay 270,538 - 12,022,805 - 173,679 12,467,022
Debt service:
Principal retirement 46,067 5,410,483 165,584 - - 5,622,134
Interest and fiscal charges 712 2,243,770 - - - 2,244,482
Other debt service costs - - 246,198 - - 246,198
Total expenditures 45,226,148 7,654,253 15,153,535 - 4,780,031 72,813,967
Excess (deficiency) of revenues
over (under) expenditures 7,469,959 1,957,140 (11,162,666) - 266,094 (1,469,473)
OTHER FINANCING SOURCES (USES)
Issuance of bonds - - 12,225,000 - - 12,225,000
Proceeds from leases 97,920 - 1,071,575 - - 1,169,495
Premium on issuance of bonds - - 817,990 - - 817,990
Transfers from other funds 95,000 16,792 - - 720,792 832,584
Transfers to other funds (470,000) - (16,792) - (445,792) (932,584)
Total other financing sources (uses)(277,080) 16,792 14,097,773 - 275,000 14,112,485
NET CHANGE IN FUND BALANCES 7,192,879 1,973,932 2,935,107 - 541,094 12,643,012
FUND BALANCES, BEGINNING OF YEAR 22,925,587 3,442,104 20,344,312 72 4,297,982 51,010,057
FUND BALANCES, END OF YEAR 30,118,466$ 5,416,036$ 23,279,419$ 72$ 4,839,076$ 63,653,069$
74
EXHIBIT 6
CITY OF THE COLONY, TEXAS
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES OF
GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2022
The Notes to Financial Statements are
an integral part of this statement.
31
Net change in fund balances - total governmental funds 12,643,012$
Amounts reported for governmental activities in the statement of activities
are different because:
Governmental funds report capital outlays as expenditures. However,
in the statement of activities the cost of those assets is allocated over
their estimated useful lives and reported as depreciation expense. This is
the amount of capital assets additions recorded in the current period as capital outlay. 12,332,466
Governmental funds do not recognize assets contributed by developers. However,
in the statement of activities the fair value of those assets are
recognized as revenue, then allocated over their estimated useful lives and
reported as depreciation expense. 3,454,620
Depreciation/amortization expense on capital assets is reported in the statement of activities but
does not require the use of current financial resources. Therefore, depreciation/amortization
expense is not reported as expenditures in the governmental funds. (9,645,156)
Current year changes in long term liability for compensated absences do not require
the use of current financial resources; and, therefore, are not reported as expenditures
in governmental funds. (130,706)
Current year changes in accrued interest payable do not require the use of current
financial resources; and, therefore, are not reported as expenditures in governmental funds. (41,060)
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.
Also, governmental funds report the effect of premiums, discounts, and similar items when debt
is first issued, whereas the 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.
o Bond principal and financed purchase payments 5,622,134
o Bond issuance (12,225,000)
o Premium from bond issuance (817,990)
o Lease proceeds (1,169,495)
o Amortization of deferred refunding amount (43,984)
o Amortization of bond premium (511,780)
Certain expenditures related to the net pension liability are required to be de-expended and recorded as deferred
inflows and outflows of resources. This amount is the net effect of current year pension expense and contributions
to the pension plan. 1,736,828
Certain expenditures related to the total OPEB liability are required to be de-expended and recorded as deferred
inflows and outflows of resources. This amount is the net effect of current year OPEB expense and contributions
to the OPEB plan. (95,931)
Certain revenues in the government-wide statement of activities that do not
provide current financial resources are not reported as revenue in the
governmental funds. This amount is the net change in these revenues for the year. 29,543
Change in Net Position of Governmental activities 11,137,501$
75
32
76
33
PROPRIETARY FUNDS FINANCIAL STATEMENTS
77
CITY OF THE COLONY, TEXAS
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
SEPTEMBER 30, 2022
The Notes to the Financial Statements are
an integral part of this statement.
34
BUSINESS TYPE
ACTIVITIES
WATER AND SEWER
ENTERPRISE
FUND
ASSETS
CURRENT ASSETS
Cash and cash equivalents 21,107,075$
Receivables, net of allowance for uncollectibles:
Accounts 2,923,225
Other 13,601
Inventories 78,085
Prepaid expenses 1,236
Restricted cash and cash equivalents 3,654,061
Total current assets 27,777,283
NONCURRENT ASSETS
CAPITAL ASSETS
Land 3,273,473
Water system and sanitary sewer system 205,077,675
Drainage system 1,684,364
Buildings 724,161
Machinery and equipment 5,004,167
Infrastructure 16,947,047
Construction in progress 1,379,907
Total capital assets before accumulated depreciation 234,090,794
Less: accumulated depreciation (76,006,780)
Capital assets, net of accumulated depreciation 158,084,014
Total assets 185,861,297
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows - pensions 542,856
Deferred outflows - OPEB 36,706
Deferred charge on refunding 397,860
Total deferred outflows of resources 977,422
TOTAL ASSETS AND DEFERRED
OUTFLOWS OF RESOURCES 186,838,719$
78
EXHIBIT 7
35
BUSINESS TYPE
ACTIVITIES
WATER AND SEWER
ENTERPRISE
FUND
LIABILITIES, DEFERRED INFLOWS OF RESOURCES,
AND NET POSITION
CURRENT LIABILITIES
Accounts payable and accrued liabilities 854,208$
Accrued compensated absences due within one year 387,527
Payable from restricted assets:
Accounts payable and accrued expenses 769,856
Revenue bonds payable 5,734,879
Accrued interest payable 324,808
Customer meter deposits 914,175
Total current liabilities 8,985,453
NON-CURRENT LIABILITIES
Revenue bonds payable 61,295,477
Accrued compensated absences not due within one year 5,610
Total OPEB liability 161,898
Net pension liability 552,150
Total non-current liabilities 62,015,135
TOTAL LIABILITIES 71,000,588
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources - OPEB 10,794
Deferred inflows of resources - pensions 829,705
Total deferred inflows of resources 840,499
NET POSITION
Net Investment in capital assets 105,648,298
Restricted for:
Construction 1,358,869
Unrestricted 7,990,465
TOTAL NET POSITION 114,997,632
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND NET POSITION 186,838,719$
79
EXHIBIT 8
CITY OF THE COLONY, TEXAS
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
The Notes to the Financial Statements are
an integral part of this statement.
36
BUSINESS TYPE
ACTIVITIES
WATER AND SEWER
ENTERPRISE
FUND
OPERATING REVENUES
Charges for sales and services:
Water service 15,875,716$
Wastewater treatment service 8,289,562
Other fees and penalties 1,273,267
Service charges 80,690
Miscellaneous 91,094
Total operating revenues 25,610,329
OPERATING EXPENSES
Personnel services 5,120,754
Contractual services 1,921,122
Supplies 722,744
Maintenance 2,350,872
Water purchases 3,092,519
Overhead 5,501,161
Depreciation 5,724,497
Total operating expenses 24,433,669
OPERATING INCOME 1,176,660
NON-OPERATING REVENUES (EXPENSES)
Investment income 262,050
Interest and fiscal charges (2,191,402)
Total non-operating revenues (expenses)(1,929,352)
LOSS BEFORE CAPITAL CONTRIBUTIONS
AND TRANSFERS (752,692)
CAPITAL CONTRIBUTIONS AND TRANSFERS
Capital contributions 1,865,904
Development fees 1,063,215
Transfers from other funds 100,000
Total capital contributions and transfers 3,029,119
CHANGE IN NET POSITION 2,276,427
NET POSITION, BEGINNING OF YEAR 112,721,205
NET POSITION, END OF YEAR 114,997,632$
80
EXHIBIT 9
CITY OF THE COLONY, TEXAS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
The Notes to the Financial Statements are
an integral part of this statement.
37
BUSINESS TYPE
ACTIVITIES
WATER AND SEWER
ENTERPRISE
FUND
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers 25,299,371$
Cash paid to employees for services (5,492,345)
Cash paid for goods and services (14,432,857)
Net cash provided by operating activities 5,374,169
CASH FLOWS FROM NON-CAPITAL
FINANCING ACTIVITIES
Transfers from other funds 100,000
Net cash provided by non-capital financing activities 100,000
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Principal paid on revenue bond maturities (5,580,095)
Cost of bond issuance 12,675
Proceeds from issuance of bonds 8,150,000
Premium on issuance of bonds 545,326
Grants and contributions 305,757
Interest and fiscal charges (2,719,941)
Acquisition of capital assets (7,970,382)
Development fees 1,063,215
Net cash used in capital and related financial activities (6,075,736)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment income 262,050
Net cash provided by investing activities 262,050
NET DECREASE IN CASH AND CASH EQUIVALENTS (339,517)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 25,100,653
CASH AND CASH EQUIVALENTS, END OF YEAR 24,761,136$
81
EXHIBIT 9 CONT’D
CITY OF THE COLONY, TEXAS
STATEMENT OF CASH FLOWS – CONTINUED
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
The Notes to the Financial Statements are
an integral part of this statement.
38
BUSINESS TYPE
ACTIVITIES
WATER AND SEWER
ENTERPRISE
FUND
RECONCILIATION OF OPERATING LOSS TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
Operating income 1,176,660$
Adjustments to reconcile operating loss
to net cash provided by operating activities:
Depreciation 5,724,497
Pension expense (319,459)
Contribution to net pension liability -
OPEB expense 4,568
Provision for bad debts (14,990)
Change in assets and liabilities:
Increase in accounts receivable (245,990)
Increase in inventories (39,687)
Decrease in accounts payable and accrued liabilities (882,948)
Increase in compensated absences 15,236
Decrease in customer deposits (49,978)
Total adjustments 4,197,509
NET CASH PROVIDED BY OPERATING ACTIVITIES 5,374,169$
NON-CASH FINANCING ACTIVITIES:
Contributions of capital assets 1,560,147$
82
39
COMPONENT UNITS
FINANCIAL STATEMENTS
83
40 84
EXHIBIT 10
CITY OF THE COLONY, TEXAS
STATEMENT OF NET POSITION
DISCRETELY PRESENTED COMPONENT UNITS
SEPTEMBER 30, 2022
The Notes to the Financial Statements are
an integral part of this statement.
41
THE COLONY THE COLONY THE COLONY
ECONOMIC COMMUNITY LOCAL
DEVELOPMENT DEVELOPMENT DEVELOPMENT
CORPORATION CORPORATION CORPORATION TOTALS
ASSETS
Cash and cash equivalents 15,426,084$ 10,359,933$ 5,917,029$ 31,703,046$
Sales tax receivable 2,117,849 2,117,849 - 4,235,698
Prepaids - 189 3,570,776 3,570,965
Restricted assets
Cash and cash equivalents 10,156,785 10,160,038 11,864,131 32,180,954
Capital assets
Land 6,355,178 - 22,321,911 28,677,089
TOTAL ASSETS 34,055,896$ 22,638,009$ 43,673,847$ 100,367,752$
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding -$ -$ 359,636$ 359,636$
TOTAL DEFERRED OUTFLOWS OF RESOURCES - - 359,636 359,636
LIABILITIES AND NET POSITION
Accounts payable 1,471,424 1,436,468 10,000 2,917,892
Accrued interest payable 1,030,558 1,008,463 3,296,113 5,335,134
Non-current liabilities:
Due within one year 950,576 420,000 2,995,000 4,365,576
Due in more than one year 30,835,882 26,137,029 135,583,225 192,556,136
TOTAL LIABILITIES 34,288,440$ 29,001,960$ 141,884,338$ 205,174,738$
NET POSITION (DEFICIT)
Net investment in capital assets (23,330,857)$ -$ (116,256,314)$ (139,587,171)$
Unrestricted 23,098,313 (6,363,951) 18,405,459 35,139,821
TOTAL NET POSITION (DEFICIT)(232,544)$ (6,363,951)$ (97,850,855)$ (104,447,350)$
85
CITY OF THE COLONY, TEXAS
STATEMENT OF ACTIVITIES
DISCRETELY PRESENTED COMPONENT UNITS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
The Notes to the Financial Statements are
an integral part of this statement.
42
Charges for Operating Grants Capital Grants
Expenses Services and Contributions and Contributions
COMPONENT UNITS:
The Colony Economic
Development Corporation 4,417,801$ -$ -$ -$
The Colony Community
Development Corporation 3,093,909 - - -
The Colony Local
Development Corporation 6,775,248 - 1,867,951 -
TOTAL COMPONENT UNITS 14,286,958$ -$ 1,867,951$ -$
General revenues:
Taxes:
Sales taxes
Interest on investments
Miscellaneous
Total general revenue
CHANGE IN NET DEFICIT
NET DEFICIT, Beginning of Year
NET DEFICIT, End of Year
Program Revenues
86
EXHIBIT 11
43
The Colony The Colony The Colony
Econ. Dev. Comm. Dev. Local Dev.
Corporation Corporation Corporation TOTAL
(4,417,801)$ -$ -$ (4,417,801)$
- (3,093,909) - (3,093,909)
- - (4,907,297) (4,907,297)
(4,417,801)$ (3,093,909)$ (4,907,297)$ (12,419,007)$
9,775,815$ 9,775,815$ 8,898,231$ 28,449,861$
96,670 74,150 24,532 195,352
2,163 1,200 - 3,363
9,874,648 9,851,165 8,922,763 28,648,576
5,456,847 6,757,256 4,015,466 16,229,569
(5,689,391) (13,121,207) (101,866,321) (120,676,919)
(232,544)$ (6,363,951)$ (97,850,855)$ (104,447,350)$
Net (Expense) Revenue and
Changes in Net Position
COMPONENT UNITS
87
44
88
45
NOTES TO BASIC FINANCIAL STATEMENTS
89
46 90
CITY OF THE COLONY, TEXAS
NOTES FINANCIAL STATEMENTS
47
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
General Statement
The City of The Colony (the City), originally incorporated in 1977, is a municipal corporation
incorporated under Article XI of the Constitution of the State of Texas (Home Rule Amendment).
The City operates under a Council-Manager form of government and provides such services as
are authorized by its charter to advance the welfare, health, comfort, safety and convenience of
the City and its inhabitants.
The accounting and reporting policies of the City conform to accounting principles generally
accepted in the United States of America (GAAP) applicable to state and local governments. The
Governmental Accounting Standards Board (GASB) is the accepted standards setting body for
establishing governmental accounting and financial reporting principles. Management uses
estimates and assumptions in preparing financial statements in accordance with GAAP. Those
estimates and assumptions affect the reported amount of assets and liabilities, the disclosure of
contingent assets and liabilities, and the reported revenues, expenditures and expenses. Actual
results could vary from the estimates that are used. The significant accounting policies of the City
are described below.
Financial Reporting Entity
The City is governed by an elected mayor and a six-member council and has the authority to
make decisions, appoint administrators and managers, and significantly influence operations. It
also has the primary accountability for fiscal matters.
The accompanying financial statements present the government and its component units, entities
for which the government is considered to be financially accountable. Each discretely presented
component unit is reported in a separate column in the government-wide financial statements to
emphasize that it is legally separate from the government.
The financial information of the following component units have been “discretely presented” in the
accompanying report because (i) their governing boards are not substantially the same as the
governing body of the City, or (ii) the component unit provides services entirely or almost entirely
to the citizenry and not the City:
The Colony Economic Development Corporation (TCEDC) - Organized exclusively for the
public purposes of the promotion and development of new and expanded business
enterprises to provide and encourage employment in the furtherance of public welfare.
The Colony Community Development Corporation (TCCDC) - Responsible for promoting
economic development within the City and the State of Texas in order to eliminate
unemployment and underemployment, and to promote and encourage employment and the
public welfare of, for, and on behalf of the City by developing, implementing, providing and
financing projects under the Development Corporation Act of 1979. This includes the
construction, renovation and operation of municipal buildings, the acquisition and
improvement of parks as well as the promotion and expansion of manufacturing and industrial
facilities, and other economic development purposes.
91
CITY OF THE COLONY, TEXAS
NOTES FINANCIAL STATEMENTS
48
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Financial Reporting Entity – Continued
The Colony Local Development Corporation (TCLDC) – Established as the primary
governing body for funding Tax Increment Reinvestment Zone (TIRZ) Number One public
infrastructure. Surrounding these activities are performance agreements between the TCLDC
and the developer, NMF Services, which commenced November 2011 and will terminate on
the 75th anniversary of the date in which the City collects its first sales tax dollar from the
respective facility.
A majority of the members of the TCEDC’s, TCCDC’s, and TCLDC’s Boards of Directors are
appointed by the City Council. The TCEDC, TCCDC, and TCLDC are each fiscally dependent
upon the City as the City Council approves their budgets and must approve any debt issuance.
However, the component units do not qualify for blending because the component units’ services
directly benefit the community rather than the City itself. The TCEDC and TCCDC do not issue
separate financial statements and TCLDC does issue separate financial statements which are
available through the City’s Finance Department. TCEDC, TCCDC, and TCLDC are presented
as governmental fund types within these financial statements.
Basis of Presentation
The government-wide financial statements (the statement of net position and the statement of
activities) report information on all of the activities of the City. The effect of interfund activity, within
the governmental and business-type activities columns, has been removed from these
statements. Interfund services provided and used are not eliminated in the process of
consolidation for the governmental-wide statement of activities.
Governmental activities, which normally are supported by taxes and intergovernmental revenues,
are reported separately from business-type activities, which rely to a significant extent on fees
and charges for service.
The statement of activities demonstrates the degree to which the direct expenses of a given
program are offset by program revenues. Direct expenses are those that are clearly identifiable
with a specific program. Program revenues include 1) charges to customers or applicants who
purchase, use, or directly benefit from goods, services, or privileges provided by a given program
and 2) operating or capital grants and contributions that are restricted to meeting the operational
or capital requirements of a particular program. Taxes and other items not properly included
among program revenues are reported instead as general revenues.
92
CITY OF THE COLONY, TEXAS
NOTES FINANCIAL STATEMENTS
49
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Fund Financial Statements:
The City segregates transactions related to certain functions or activities in separate funds in
order to aid financial management and to demonstrate legal compliance. Separate statements
are presented for governmental funds and proprietary funds. These statements present each
major fund as a separate column in the fund financial statements; all non-major funds are
aggregated and presented in a single column.
Governmental funds are those funds through which most governmental functions typically are
financed. The measurement focus of governmental funds is on the sources, uses and balances
of current financial resources. The City has presented the following major governmental funds:
General Fund –
The General Fund is the general operating fund of the City. It is used to account for all financial
resources not accounted for in other funds. All general tax revenues and other receipts that
are not restricted by law or contractual agreement to some other fund are accounted for in
this fund. General operating expenditures, fixed charges and capital improvement costs that
are not paid through other funds are paid from the General Fund.
Debt Service Fund –
The Debt Service Fund is used to account for the accumulation of financial resources for the
payment of principal, interest and related costs on long-term debt paid primarily from taxes
levied by the City. The fund balance of the Debt Service Fund is restricted to signify the
amounts that are exclusively for debt service expenditures.
Capital Projects Fund –
The Capital Projects Fund is used to account for the acquisition and construction of capital
assets financed primarily through the issuance of general obligation debt.
Pandemic Response –
To account for revenues and expenditures related to the City of The Colony emergency
response to COVID 19 from grant and contribution funding.
The City also reports the following non-major governmental funds:
All of the following funds are Special Revenue Funds. Special Revenue Funds account for the
proceeds of specific revenue sources (other than expendable trust or capital projects) that are
legally restricted or committed to expenditures for specific purposes.
Lake Parks Fund – To account for revenue generated by fees and permits to enter and utilize
the park area and facilities located on the eastern shore of Lake Lewisville.
93
CITY OF THE COLONY, TEXAS
NOTES FINANCIAL STATEMENTS
50
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Fund Financial Statements – Continued
Special Events Fund – To account for various special events of the City including Christmas
decorations, 4th of July fireworks display and other special events held by the City.
Hotel/Motel Taxes Fund – To account for the receipt and allocation of the City’s hotel/motel
occupancy tax.
Police Forfeited Fund – To account for the funds granted to the police department that have
been awarded by the court.
Federal Seized Fund – To account for funds granted to the police department in a revenue
sharing agreement with the federal government.
Police Seized Fund – To account for funds seized by the police department that are awaiting
disposition by the court.
Child Safety Fund – To account for child safety fees collected according to state statute to
fund the school crossing guard program and for other programs designed to enhance child
safety, health or nutrition.
Storm Water Utility Fund – To account for the revenue and expenses associated with
drainage projects within the City.
Court Security Fund – To account for the revenue and expenditures associated with the
portion of traffic tickets that have been restricted for the security of the Municipal Court.
Court Technology Fund – To account for the revenue and expenditures associated with the
portion of traffic tickets restricted for upgrading the technology in the Municipal Court.
Keep The Colony Beautiful – To account for revenue and expenditures associated with the
City-supported community volunteer program designed to help property owners who can’t
maintain their properties due to financial or physical limitations.
Citizens Donations Fund – To account for money received from the $1 Add-On Program
and the Recycling Rebate Program. This money is restricted for social and community
services, public safety citizen programs and beautification projects.
Public Improvement District (PID) No. 1 – To account for revenues and expenditures related
to the City of The Colony Public Improvement District No.1.
Trinity North Medical – To account for revenues and expenditures related to the City of The
Colony renting out space in their building.
Juvenile Case – To account for revenues and expenditures related to the City of The Colony’s
juvenile court.
94
CITY OF THE COLONY, TEXAS
NOTES FINANCIAL STATEMENTS
51
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Fund Financial Statements – Continued
Proprietary Funds are accounted for using the economic resources measurement focus and the
accrual basis of accounting. The accounting objectives are determinations of net income, financial
position and cash flow.
All assets and liabilities are included in the Statement of Net Position. The City has presented the
following major proprietary fund:
Water and Sewer Enterprise Fund
Water and Sewer Enterprise Fund is used to account for the acquisition, operation and
maintenance of a municipal water and sewer utility, supported primarily by user charges to
the public.
Proprietary funds distinguish operating revenues and expenses from non-operating 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.
Operating expenses for the proprietary funds include the cost of personnel and contractual
services, supplies, maintenance and depreciation on capital assets. All revenues and
expenses not meeting this definition are reported as non-operating revenues and expenses.
Measurement Focus and Basis of Accounting
Measurement focus refers to what is being measured; 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 statements and fund financial statements for proprietary funds are
reported using the economic resources measurement focus and the accrual basis of
accounting. The economic resources measurement focus means all assets, liabilities
(whether current or non-current), and deferred inflows and outflows of resources are included
in the statement of net assets and the operating statements present increases (revenues) and
decreases (expenses) in net total position. Under the accrual basis of accounting, revenues
are recognized when earned, including unbilled water and sewer services which are accrued.
Expenses are recognized at the time the liability is incurred.
Governmental fund financial statements are reported using the current financial resources
measurement focus and are accounted for using the modified accrual basis of accounting.
Under the modified accrual basis of accounting, revenues are recognized when susceptible
to accrual; i.e., when they become both measurable and available. “Measurable” means the
amount of the transaction can be determined and “available” means collectible within the
current period or soon enough thereafter to be used to pay liabilities of the current period. The
City considers all revenues as available if they are collected within 60 days after year end.
Expenditures are recorded when the related fund liability is incurred, except for non-matured
interest on long-term debt which is recognized when due, and certain compensated absences
and claims and judgments which are recognized when the obligations are expected to be
liquidated with expendable available financial resources.
Property taxes, sales taxes, franchise taxes and interest are susceptible to accrual. Other
receipts become measurable and available when cash is received by the City and are
recognized as revenue at that time.
95
CITY OF THE COLONY, TEXAS
NOTES FINANCIAL STATEMENTS
52
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Cash and Cash Equivalents
State statutes and policy as established by the City Council authorize the City to invest in
certificates of deposit, direct obligations of the U.S. Treasury, investment pools consisting of
such U.S. Treasury obligations, repurchase agreements, commercial paper and mutual funds.
Substantially all operating cash and cash equivalents are maintained in pooled cash and time
deposit accounts. Interest income relating to pooled deposits is allocated to the individual funds
based on each fund’s pro rata share of total pooled deposits.
Restricted cash and investments is classified separately in the balance sheet of governmental
funds and statement of net position for proprietary funds and represents cash and cash
equivalents restricted for specific infrastructure projects (governmental funds) or the payment of
long-term debt and for the acquisition of capital assets (proprietary funds).
For purposes of the statement of cash flows, the proprietary funds consider all highly liquid
investments (including restricted assets) with an original maturity of three months or less when
purchased to be cash equivalents, as they are available for withdrawal on demand.
Investments are accounted for in accordance with GASB No. 31 – Accounting and Financial
Reporting for Certain Investments and for External Investment Pools. Investments are recorded
at amortized cost when original maturity at the time of purchase is less than one year or at market
if greater than one year.
Property Taxes
The City’s ad valorem property tax is levied each October 1 on the assessed value listed as of
the prior January 1 for all real and certain personal property located within the City. Property
taxes attach as an enforceable lien on property as of January 1 after they are levied. The
assessed value upon which the fiscal year 2022 levy was based was $5,967,213,214. Taxes are
due on October 1 and are delinquent after the following January 31. Current tax collections for
the year ended September 30, 2022 were 99.56% of the tax levy.
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. The combined tax rate to
finance general governmental services including the payment of principal and interest on
long-term debt for the year ended September 30, 2022 was $0.6500 per $100 of assessed
valuation.
The ordinance levying the ad valorem taxes specifies the percentage of the taxes applicable to
the General Fund, and Debt Service Fund therefore, ad valorem tax revenues are recorded as
revenues in the respective funds.
96
CITY OF THE COLONY, TEXAS
NOTES FINANCIAL STATEMENTS
53
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Property Taxes – Continued
In Texas, countywide central appraisal districts are required to assess all property within the
appraisal district on the basis of 100% of its appraised value and are prohibited from applying
any assessment ratios. The value of property within the appraisal district must be reviewed every
five years; however, the City may, at its own expense, require annual reviews of appraised
values.
The City may challenge appraised values established by the appraisal district through various
appeals and, if necessary, legal action. Under this legislation, the City continues to set tax rates
on City property. However, if the revenues from the effective tax rate times the appraised values,
excluding tax rates for bonds and other contractual obligations, adjusted for new improvements,
exceeds the property tax revenues from previous year by more than 3%, City must have an
election to approve effective interest rates.
Lease Receivable
Lessor –
The City is a lessor for noncancellable leases of property. The City recognizes a lease receivable and
a deferred inflow of resources in the government‐wide and governmental fund financial statements.
At implementation of GASB Statement No. 87 and the commencement leases beginning after
October 1, 2021, the City initially measures 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.
Key estimates and judgments related to leases include how the City determines (1) the discount rate
it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts.
The City uses its estimated incremental borrowing rate as the discount rate for leases.
The lease term includes the noncancellable period of the lease.
Lease payments included in the measurement of the lease receivable are composed of fixed
payments from the lessee, variable payments from the lessee that are fixed in substance or
that depend on an index or a rate, residual value guarantee payments from the lessee that
are fixed in substance, and any lease incentives that are payable to the lessee.
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.
97
CITY OF THE COLONY, TEXAS
NOTES FINANCIAL STATEMENTS
54
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Budgets
The City adopts annual appropriated budgets for its General Fund, Debt Service Fund, Lake
Parks Fund, Special Events Fund, Hotel/Motel Taxes Fund, Child Safety Fund, and Storm Water
Utility Fund. The budgetary comparison schedules have been provided for these funds to
demonstrate compliance with the budgets.
For the year ended September 30, 2022, expenditures exceeded appropriations as follows:
Special Events
o Culture and recreation ($10,673)
Storm Water
o Public works ($115,549)
Internal Balances
Any residual balances outstanding between the governmental activities and business-type
activities are reported in the government-wide financial statements as “internal balances.”
Transactions between Funds and Component Units
Interfund services are accounted for as revenues, expenditures or expenses. Transactions that
constitute reimbursements to a fund for expenditures/expenses initially made from it that are
properly applicable to another fund, are recorded as expenditures/ expenses in the reimbursing
fund and as a reduction of expenditures/expenses in the fund reimbursed. All other interfund
transactions, except interfund services and reimbursements, are recorded as transfers.
Transactions between the component units and the primary government are accounted for as
external transactions. During the year ended September 30, 2022, the TCCDC contributed
$496,938 to the general fund. Additionally, the TCEDC contributed $305,759 to the Water and
Sewer Enterprise Fund and $445,459 to the General Fund.
Prepaids and Inventories
Inventories, which are expended when consumed, are stated at cost on a first-in, first-out basis.
Prepaid balances are for payment made by the City in the current year to provide services
occurring in the subsequent fiscal year. The cost of prepaid items is expensed when consumed
rather than when purchased.
Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets, are reported
in the applicable governmental or business-type activities columns in the government-wide
financial statements and in the fund financial statements for proprietary funds. All capital assets
are valued at historical cost or estimated historical cost if actual historical cost is not available.
Donated assets are valued at acquisition value on the date donated. The costs of normal repairs
and maintenance that do not add to the value of the asset or materially extend the asset lives are
not capitalized. Renewals and betterments are capitalized.
98
CITY OF THE COLONY, TEXAS
NOTES FINANCIAL STATEMENTS
55
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Capital Assets – Continued
Assets capitalized or amortized, not including infrastructure assets, have an original cost of
$5,000 or more and over one year of useful life. Depreciation and amortization has been
calculated on each class of depreciable or amortizable property using the straight-line method.
Estimated useful lives are as follows:
Buildings 30 Years
Towers, tanks, and pump stations 40 Years
Infrastructure 40 Years
Machinery and equipment 5 - 10 Years
Right-use-assets 5 - 10 Years
Vehicles 5 Year
Vacation and Sick Leave (Compensated Absences)
In the event of termination, an employee is reimbursed for up to his/her accrued available vacation
days. An employee may accumulate up to 130 days of sick leave; however, upon termination,
qualified employees may be reimbursed for up to a maximum of 30 sick days. All vacation and
qualifying sick leave is accrued when incurred in the government-wide and proprietary fund
financial statements. A liability for these amounts is reported in governmental funds only if they
have matured.
Pensions and Other Postemployment Benefits (OPEB)
For purposes of measuring the net pension liability, pension related deferred outflows and inflows
of resources and pension expense, City-specific information about its Fiduciary Net Position in the
Texas Municipal Retirement System (TMRS) and additions to/deductions from the City’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.
Information regarding the City’s Total Pension Liability and Total OPEB Liability is obtained from
TMRS through reports prepared for the City by TMRS consulting actuary, Gabriel Roeder Smith &
Company, in compliance with Governmental Accounting Standards Board (GASB) Statement No.
68, Accounting and Financial Reporting for Pensions and GASB Statement No. 75, Accounting and
Financial Reporting for Postemployment Benefits Other Than Pensions.
Deferred Outflows/Inflows of Resources
In addition to assets and liabilities, the statement of financial position and/or balance sheet will
sometimes report separate sections for deferred outflows and deferred inflows of resources.
Deferred outflows of resources represent a consumption of net assets that applies to a future
period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until
then. The City has the following items that qualify for reporting as deferred outflows:
Deferred Loss on Refunding – these deferred outflows result from the difference in the
carrying value of refunded debt and its reacquisition price. This amount is deferred and
amortized over the shorter of the life of the refunded or refunding debt.
99
CITY OF THE COLONY, TEXAS
NOTES FINANCIAL STATEMENTS
56
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Deferred Outflows/Inflows of Resources – Continued
Pensions/ OPEB – these deferred outflows result from pension/OPEB contributions after the
measurement date (deferred and recognized as a reduction of the pension/OPEB liability in
the following fiscal year), and differences between expected and actual economic experience
and/or changes in actuarial assumptions (deferred and recognized over the remaining
average service lives of the plan participants).
Deferred inflows of resources represent an acquisition of net assets that applies to a future
periods. The City’s governmental funds report unavailable tax revenues, leases, and revenues
for charges for services at the fund level that will not be recognized as resources (revenue) until
future periods. Deferred inflows for both pension and OPEB liabilities include differences between
projected and actual investment earnings (deferred and recognized over a closed five-year
period). Deferred inflows for pension and OPEB liabilities also include differences
between expected and actual economic experience and/or changes in actuarial assumptions
(deferred and recognized over the remaining average service lives of the plan participants).
Lease Payable
Lessee –
The City is a lessee for noncancellable leases of property, vehicles, and equipment. The City
recognizes a lease liability, reported with long-term debt, and a right‐to‐use lease asset
(lease asset), reported with other capital assets, in the government ‐wide financial statements.
At implementation of GASB Statement No. 87 and the commencement of leases beginning after
October 1, 2021, 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.
Key estimates and judgments related to leases include how the City determines (1) the discount
rate it uses to discount the expected lease payments to present value, (2) lease term, and
(3) lease payments.
The City uses the interest rate charged by the lessor as the discount rate. When the interest
rate charged by the lessor is not provided, the City generally uses its estimated incremental
borrowing rate as the discount rate for leases.
The lease term includes the noncancellable period of the lease.
Lease payments included in the measurement of the lease liability are composed of fixed
payments, variable payments fixed in substance or that depend on an index or a rate,
purchase option price that the City is reasonably certain to exercise, lease incentives
receivable from the lessor, and any other payments that are reasonably certain of being
required based on an assessment of all relevant factors.
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.
100
CITY OF THE COLONY, TEXAS
NOTES FINANCIAL STATEMENTS
57
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
Classification of Fund Equity
Fund balances are classified as nonspendable, restricted, committed, assigned or unassigned in
governmental funds. Nonspendable fund balance cannot be spent, either because it is not in
spendable form or because of legal or contractual requirements. Restricted fund balances have
constraints for specific purposes which are externally imposed by providers, such as creditors,
grantors or other governments; or by enabling legislation of the City Council. Committed fund
balances can only be used for specific purposes pursuant to constraints imposed by ordinance of
the City Council, the City’s highest level of decision making authority. These amounts cannot be
used for any other purpose unless the City Council removes or changes the specified use by
taking the same type of action that was employed when funds were initially committed. This
classification also includes contractual obligations to the extent that existing resources have been
specifically committed for use in satisfying those contractual requirements. Assigned fund
balances are constrained by intent to be used for specific purposes, but are neither restricted nor
committed. Assignments are made by City management based on City Council direction.
Unassigned fund balances include residual positive fund balances within the General Fund that
had not been classified within the other mentioned categories. Unassigned fund balances may
also include negative balances for any governmental fund if expenditures exceed amounts
restricted, committed or assigned for those specific purposes. The City designates restricted
amounts to be spent first if both restricted and unassigned fund balances are available unless
there are legal documents/contracts that prohibit doing this, such as in grant agreements requiring
dollar for dollar spending. Additionally, the City would first use committed, followed by assigned,
and lastly unassigned amounts when expenditures are incurred for purpose for which amounts in
any of those unrestricted fund balance classifications could be used. The proprietary funds and
government-wide financial statements have three classifications of equity: (1) net investment in
capital assets; (2) restricted net position and (3) unrestricted net position. In the first category,
capital assets are netted with related bonded and capital lease debt. Restricted net position
includes debt service, grantor and other government restrictions for proprietary funds and the
same categories as restricted fund balance for governmental activities.
Deficit Fund Balance
At September 30, 2022, the Special Events Fund, a nonmajor governmental fund, had a deficit
fund balance of $21,586. The fund incurred expenditures in excess of available funds. However,
the City anticipates the receipt of revenue in fiscal year 2023 for these excess expenditures.
Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make
estimates and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial statements and reported
amounts of revenues and expenses/expenditures during the reporting period. Actual results could
differ from those estimates.
101
CITY OF THE COLONY, TEXAS
NOTES FINANCIAL STATEMENTS
58
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
GASB Pronouncements Implemented by the City
GASB Statement No. 87, Leases. This Statement was issued in June 2017 and increases the
usefulness of government financial statements by requiring recognition of certain lease assets
and liabilities for leases that previously were classified as operating leases and recognized
as inflows of resources or outflows of resources based on the payment provisions of the contract.
The requirements of this Statement were effective for reporting periods beginning after
June 15, 2021. The City has implemented this Statement in fiscal year 2022.
NOTE 2. CASH AND INVESTMENTS
The funds of the City must be deposited and invested per the Public Funds Investment Act. The
depository bank places approved pledged securities for safekeeping and trust with the City's agent
bank in an amount sufficient to protect City funds on a day-to-day basis during the period of the
contract. The pledge of approved securities is waived only to the extent of the depository bank's dollar
amount of Federal Deposit Insurance Corporation (FDIC) insurance.
At September 30, 2022 the carrying amount of the City's deposits was $2,750,282 and the bank
balance was $4,162,509. All of the bank balances were fully covered by FDIC insurance or by pledged
collateral held by the City's agent bank in the City's name. The City had petty cash totaling $5,633 at
September 30, 2022.
Legal and Contractual Provisions Governing Deposits and Investments
The Public Funds Investment Act (Government Code Chapter 2256) contains specific provisions in
the areas of investment practices, management reports and establishment of appropriate policies.
Among other things, it requires the City to adopt, implement, and publicize an investment policy. That
policy must address the following areas: (1) safety of principal and liquidity, (2) portfolio diversification,
(3) allowable investments, (4) acceptable risk levels, (5) expected rates of return, (6) maximum
allowable stated maturity of portfolio investments, (7) maximum average dollar-weighted maturity,
allowed based on the stated maturity date for the portfolio, (8) investment staff quality and capabilities,
(9) and bid solicitation preferences for certificates of deposit.
Statutes and the City’s investment policy authorized the City to invest in the following investments as
summarized in the table below:
Maximum Maximum
Authorized Maximum Percentage Investment
Investment Type Maturity of Portfolio In One Issuer
U.S. Government Securities 5 Years 100%None
State of Texas 5 Years 25%None
States, Agencies, Counties,
Cities and Other 5 Years 25%None
Repurchase Agreements 90 Days 100%None
Certificates of Deposits 5 Years 25%None
Commercial Paper 270 Days 25%None
No-Load Money Market Mutual Funds 90 Days 25%None
Eligible Investment Pools 90 Days 100%None
102
CITY OF THE COLONY, TEXAS
NOTES FINANCIAL STATEMENTS
59
NOTE 2. CASH AND INVESTMENTS – CONTINUED
Legal and Contractual Provisions Governing Deposits and Investments – Continued
The Act also requires the City to have independent auditors perform test procedures related to
investment practices as provided by the Act. The City is in substantial compliance with the
requirements of the Act and with local policies.
Cash and investments as of September 30, 2022 are classified in the accompanying financial
statements as follows:
Statement of net position:
Cash and cash equivalents – primary government 96,267,623$
Restricted cash and cash equivalents – primary government 3,654,061
Cash and cash equivalents – component units 31,703,046
Restricted cash and cash equivalents – component units 32,180,954
163,805,684$
Cash and investments as of September 30, 2022 consist of the following:
Cash on hand 5,633$
Deposits with financial institutions 2,750,282
Investment pools and money market mutual funds 161,049,769
163,805,684$
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value
of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity
of its fair value to changes in market interest rates. One of the ways that the City manages its
exposure to interest rate risk is by investing mainly in investment pools which purchase a
combination of shorter term investments with an average maturity of less than 60 days thus
reducing the interest rate risk. The City monitors the interest rate risk inherent in its portfolio by
measuring the weighted average maturity of its portfolio. The City has no specific limitations with
respect to this metric.
As of September 30, 2022 the City did not invest in any securities which are highly sensitive to
interest rate fluctuations.
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the
holder of the investment. This is measured by the assignment of a rating by a nationally
recognized statistical rating organization.
103
CITY OF THE COLONY, TEXAS
NOTES FINANCIAL STATEMENTS
60
NOTE 2. CASH AND INVESTMENTS – CONTINUED
Disclosures Relating to Credit Risk – Continued
Presented below is the minimum rating required by (where applicable) the Public Funds Investment
Act, the City’s investment policy, or debt agreements, and the actual rating as of year-end for each
investment type.
Weighted
Average
Amount Maturity
TexPool 90,019,425$ 25 days
TexPool Prime 32,284,900 14 days
Money Market Mutual Funds 38,745,444 40 days
161,049,769$
Investment Type
Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in
any one issuer. As of September 30, 2022 other than external investment pools the City did not
have 5% or more of its investment with one issuer.
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial
institution, a government will not be able to recover its deposits or will not be able to recover
collateral securities that are in the possession of an outside party. The custodial credit risk for
investments is the risk that, in the event of the failure of the counterparty to a transaction, a
government will not be able to recover the value of its investment or collateral securities that are
in the possession of another party. The Public Funds Investment Act and the City’s investment
policy do not contain legal or policy requirements that would limit the exposure to custodial credit
risk for deposits or investments, other than the following provision for deposits:
The Public Funds Investment Act requires that a financial institution secure deposits made by
state or local governmental units by pledging securities in an undivided collateral pool held by a
depository regulated under state law (unless so waived by the governmental unit). The market
value of the pledged securities in the collateral pool must equal at least the bank balance less the
FDIC insurance at all times.
As of September 30, 2022 the City deposits with financial institutions in excess of federal
depository insurance limits were fully collateralized during the year.
104
CITY OF THE COLONY, TEXAS
NOTES FINANCIAL STATEMENTS
61
NOTE 2. CASH AND INVESTMENTS – CONTINUED
Custodial Credit Risk – Continued
The City categorizes its fair value measurements within the fair value hierarchy established by
generally accepted accounting principles. GASB Statement No. 72, Fair Value Measurement and
Application, provides a framework for measuring fair value which establishes a three-level fair
value hierarchy that describes the inputs that are used to measure assets and liabilities.
Level 1 inputs are quoted prices (unadjusted) for identical assets or liabilities in active
markets that a government can access at the measurement date.
Level 2 inputs are inputs – other than quoted prices included within Level 1 – that are
observable for an asset or liability, either directly or indirectly.
Level 3 inputs are unobservable inputs for an asset or liability.
The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to
Level 3 inputs. If a price for an identical asset or liability is not observable, a government should
measure fair value using another valuation technique that maximizes the use of relevant
observable inputs and minimizes the use of unobservable inputs. If the fair value of an asset or a
liability is measured using inputs from more than one level of the fair value hierarchy, the
measurement is considered to be based on the lowest priority level input that is significant to the
entire measurement.
The City has recurring fair value measurements as presented in the table below. The City’s
investment balances and weighted average maturity of such investments are as follows:
Quoted
Prices in
Active Significant
Markets for Other Significant Weighted
Identical Observable Unobservable Percent of Average
Value at Assets Inputs Inputs Total Maturity
September 30, 2022 (Level 1)(Level 2)(Level 3)Investments (Days)
Investments not Subject to Fair Value:
Investment Pools:
TexPool 90,019,425$ -$ -$ -$ 55.90%25
TexPool Prime 32,284,900 - - - 20.05%14
Investments by Fair Value Level:
Money Market Mutual Funds 38,745,444 38,745,444 - - 24.06%40
Total Value 161,049,769$ 38,745,444$ -$ -$ 100.00%
Fair Value Measurements Using
Money Market Mutual funds reported as Level 1 consist of shares of a money market funds
government portfolio and are valued at net asset value (NAV) of the assets held by the City. The
NAV is a quoted price in an active market.
105
CITY OF THE COLONY, TEXAS
NOTES FINANCIAL STATEMENTS
62
NOTE 2. CASH AND INVESTMENTS – CONTINUED
Investment in State Investment Pools
The City is a voluntary participant in two investment pools: TexPool and TexPool Prime. Each of
these pools operate in a manner consistent with the SEC’s Rule 2a-7 of the Investment Company
Act of 1940. Each uses amortized costs rather than market value to report the net position to
compute share prices. Accordingly, the value of the City’s position in the pools is the same as the
value of the shares in the pool.
The State Comptroller of Public Accounts exercises responsibility over TexPool and TexPool
Prime. This oversight includes the ability to significantly influence operations, designation of
management, and accountability for fiscal matters. Additionally, the State Comptroller has
established an advisory board composed of both participants in TexPool and other persons who
do not have a business relationship with TexPool.
NOTE 3. RECEIVABLES
Receivables at September 30, 2022 for the individual major funds, nonmajor funds, and component
units in the aggregate, including the applicable allowances for uncollectible accounts, consist of the
following:
Business-type
Activities Discretely
Non-Major Total Water and Presented
Debt Governmental Governmental Sewer Component
General Service Funds Activities Enterprise Units
Receivables
Property taxes 414,003 52,763$ -$ 466,766$ 13,601$ -$
Franchise taxes 632,588 - - 632,588 - -
Sales taxes 4,235,698 - - 4,235,698 - 4,235,698
Service accounts 557,155 - - 557,155 3,193,158 -
Other 3,352,432 - 1,873,079 5,225,511 - -
Gross receivables 9,191,876 52,763 1,873,079 11,117,718 3,206,759 4,235,698
Allowance for uncollectibles (443,146)- - (443,146) (269,933) -
- Net total receivables 8,748,730$ 52,763$ 1,873,079$ 10,674,572$ 2,936,826$ 4,235,698$
Governmental Activities
The Water and Sewer Fund service accounts receivable include unbilled charges for services
rendered through September 30, 2022 in the amount of $1,756,702.
106
CITY OF THE COLONY, TEXAS
NOTES FINANCIAL STATEMENTS
63
NOTE 3. RECEIVABLES – CONTINUED
The City has entered into multiple lease agreements as lessor. The leases allow the right-to-use of
land and cell towers to other organizations over the term of the lease. The City receives annual or
monthly payments at the interest rate stated or implied within the leases. The interest rates for these
leases ranged from 0.28%-5.71%. The City has $4,447,050 remaining in lease receivables, which is
reported in the Receivables-other category, and $4,509,247 remaining in deferred inflows as of
September 30, 2022.
Description Interest rate
Receivable at
commencment
Lease
term in
years Ending Balance
Ground lease 0.28%-1.58% 1,471,033$ 32 1,363,635$
Cell towers 0.28%-5.71% 3,302,196 5-20 3,083,415
Total governmental activities 4,447,050$
Year Ended
September 30, Principal Interest Total
2023 310,203$ 63,486$ 373,689$
2024 318,443 58,660 377,103
2025 299,492 53,707 353,199
2026 298,774 48,696 347,470
2027 270,520 44,155 314,675
2028-2032 1,357,819 166,524 1,524,343
2033-2037 862,824 89,914 952,738
2038-2042 583,590 32,621 616,211
2043-2047 145,385 4,615 150,000
4,447,050$ 562,378$ 5,009,428$
107
CITY OF THE COLONY, TEXAS
NOTES FINANCIAL STATEMENTS
64
NOTE 4. CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2022, was as follows:
Balance Sales or Balance
September 30, Capital Other Adjustments/ September 30,
2021 Acquisitions Dispositions Transfers 2022
Governmental Activities:
Capital assets not being
depreciated/amortized
Land and Land Improvements 4,510,684$ -$ -$ -$ 4,510,684$
Rights-of-way 25,571,036 - - - 25,571,036
Construction in progress 7,218,646 11,162,971 - (8,602,408) 9,779,209
Total capital assets not being
depreciated/amortized 37,300,366 11,162,971 - (8,602,408) 39,860,929
Capital assets being
depreciated/amortized
Buildings 39,130,853 - - 160,807 39,291,660
Improvements
other than buildings 21,180,232 - - 3,761,223 24,941,455
Swimming pool 1,839,255 - - 236,996 2,076,251
Machinery and equipment 18,963,611 - - 217,088 19,180,699
Infrastructure 287,715,831 3,454,619 - 4,226,294 295,396,744
Right-to-use assets - 1,265,639 - - 1,265,639
Total capital assets being
depreciated/amortized 368,829,782 4,720,258 - 8,602,408 382,152,448
Less: accumulated
depreciation/amortization for:
Buildings (12,727,008) (1,234,128) - - (13,961,136)
Improvements
other than buildings (10,040,853) (750,677) - - (10,791,530)
Swimming pool (1,216,648) (71,600) - - (1,288,248)
Machinery and equipment (11,837,877) (1,075,380) - - (12,913,257)
Infrastructure (122,574,085) (6,306,966) - - (128,881,051)
Right-to-use assets - (206,406) - - (206,406)
Total accumulated
depreciation/amortization (158,396,471) (9,645,157) - - (168,041,628)
Total capital assets being
depreciated/amortized, net 210,433,311 (4,924,899) - 8,602,408 214,110,820
Governmental activities
capital assets, net 247,733,677$ 6,238,072$ -$ -$ 253,971,749$
108
CITY OF THE COLONY, TEXAS
NOTES TO FINANCIAL STATEMENTS
65
NOTE 4. CAPITAL ASSETS – CONTINUED
Balance Sales or Balance
September 30,Capital Other Adjustments/ September 30,
2021 Acquisitions Dispositions Transfers 2022
Business-Type Activities:
Capital assets not being
depreciated
Land 3,273,473$ -$ -$ -$ 3,273,473$
Construction in progress 8,730,127 7,713,248 - (15,063,468) 1,379,907
Total capital assets not
being depreciated 12,003,600 7,713,248 - (15,063,468) 4,653,380
Capital assets being
depreciated:
Building 724,161 - - - 724,161
Water System 91,472,472 1,015,384 - 2,592,942 95,080,798
Sanitary System 96,981,590 544,761 - 12,470,526 109,996,877
Drainage System 1,684,364 - - - 1,684,364
Machinery and Equipment 4,747,032 257,135 - - 5,004,167
Infrastructure 16,947,047 - - - 16,947,047
Total capital assets
being depreciated 212,556,666 1,817,280 - 15,063,468 229,437,414
Less: Accumulated
depreciation for:
Building (586,339) (7,343) - - (593,682)
Water System (29,071,660) (2,322,444) - - (31,394,104)
Sanitary System (26,477,078) (2,648,616) - - (29,125,694)
Drainage System (1,652,026) (3,584) - - (1,655,610)
Machinery and Equipment (3,189,933) (385,407) - - (3,575,340)
Infrastructure (9,305,247) (357,103) - - (9,662,350)
Total accumulated
depreciation (70,282,283) (5,724,497) - - (76,006,780)
Total capital assets
being depreciated, net 142,274,383 (3,907,217) - 15,063,468 153,430,634
Business-Type activities
capital assets, net 154,277,983$ 3,806,031$ -$ -$ 158,084,014$
Balance Sales or Balance
September 30,Capital Other September 30,
2021 Acquisitions Dispositions 2022
Component Units:
Capital assets not being
depreciated
Land 28,677,089$ -$ -$ 28,677,089$
Component Units
capital assets, net 28,677,089$ -$ -$ 28,677,089$
109
CITY OF THE COLONY, TEXAS
NOTES TO FINANCIAL STATEMENTS
66
NOTE 4. CAPITAL ASSETS – CONTINUED
Depreciation and amortization expense was charged as direct expense to programs of the primary
government as follows:
General government 4,446,646$
Public safety 921,549
Public works 3,472,586
Culture and recreation 804,376
Total depreciation/amortization expense-Governmental activities 9,645,157$
Business-type activities:
Water and Sewer 5,724,497$
There was no depreciation or amortization expense charged to the component units during the
current year.
110
CITY OF THE COLONY, TEXAS
NOTES TO FINANCIAL STATEMENTS
67
NOTE 5. LONG-TERM DEBT
At September 30, 2022, bonds payable consisted of the following individual issues:
Governmental Business-type Component
Certificates of Obligation:Activities Activities Units
Combination Tax and Surplus Revenue Certificates of Obligation, Series 2013, 2.00% to 4.375%,
maturing in annual installments of $155,000 to $675,000 through 2033.1,325,000$ -$ -$
Combination Tax and Surplus Revenue Certificates of Obligation, Series 2014, 3.00% to 6.00%,
maturing in annual installments of $510,000 to $1,550,000 through 2035.2,283,400 14,026,600 -
Combination Tax and Surplus Revenue Certificates of Obligation, Series 2015, 3.00% to 4.00%,
maturing in annual installments of $470,000 to $690,000 through 2035.- 7,750,000 -
Combination Tax and Surplus Revenue Certificates of Obligation, Series 2016, 3.00% to 4.00%,
maturing in annual installments of $685,000 to $1,025,000 through 2037.8,995,000 3,855,000 -
Combination Tax and Surplus Revenue Certificates of Obligation, Series 2018, 3.00% to 4.00%,
maturing in annual installments of $555,000 to $850,000 through 2038.9,882,000 1,098,000 -
Combination Tax and Surplus Revenue Certificates of Obligation, Series 2019, 3.00% to 5.00%,
maturing in annual installments of $845,000 to $1,095,000 through 2039. 9,969,600 6,110,400 -
Combination Tax and Surplus Revenue Certificates of Obligation, Series 2020, 3.00% to 5.00%,
maturing in annual installments of $252,850 to $761,813 through 2040. 3,136,250 9,408,750 -
Combination Tax and Surplus Revenue Certificates of Obligation, Series 2021, 2.00% to 5.00%,
maturing in annual installments of $290,000 to $540,000 through 2040. 7,326,000 814,000 -
Combination Tax and Surplus Revenue Certificates of Obligation, Series 2022, 4.00% to 5.00%,
maturing in annual installments of $475,000 to $1,335,,000 through 2039. 12,225,000 8,150,000 -
55,142,250$ 51,212,750$ -$
General Obligation Bonds:
217,500$ 72,500$ -$
694,000 2,776,000 -
1,000,450 4,884,550 -
3,145,000 1,480,000 -
5,231,818 1,708,182 -
10,288,768$ 10,921,232$ -$
Component
Revenue Bonds:Governmental Business-type Unit
-$ -$ 27,965,000$
- - 27,965,000
Sales Tax Increment Contract Revenue Bonds, Series 2013 (Infrastructure Bonds), 5.00% to
7.625%, maturing in annual installments from October 1, 2018 through October 1, 2042.- - 15,190,000
- - 104,020,000
- - 5,130,000
- - 19,395,000
-$ -$ 199,665,000$
Tax Increment Contract Revenue Refunding Bonds, Series 2021, 3.580%, maturing in annual
installments from October 1, 2021 through October 1, 2034.
Sales Tax Revenue Bonds, Series 2013 (Infrastructure Bonds), 4.50% to 7.25%, maturing in
annual installments of $ 195,000 to $2,770,000 through 2042.
Sales Tax Revenue Bonds, Series 2013 (Infrastructure Bonds), 4.50% to 7.25%, maturing in
annual installments of $ 195,000 to $2,770,000 through 2042.
General Obligation Refunding Bonds, Series 2014, 2.00% to 5.00%, maturing in annual
installments of $55,000 to $1,535,000 through 2026.
Sales Tax Increment Contract Revenue Bonds, Series 2013 (Infrastructure Bonds), 2.594% to
4.881%, maturing in annual installments from October 1, 2020 through October 1, 2047.
Sales Tax Revenue Bonds, Series 2017 (Infrastructure Bonds), 3.520%, maturing in annual
installments from October 1, 2018 through October 1, 2032.
General Obligation Refunding Bonds, Series 2015, 3.00% to 4.00%, maturing in annual
installments of $840,000 to $1,715,000 through 2027.
General Obligation Refunding Bonds, Series 2020, 3.00% to 4.00%, maturing in annual
installments of $806,446 to $263,304 through 2030.
General Obligation Refunding Bonds, Series 2013, 3.00% to 5.00%, maturing in annual
installments of $1,205,000 to $1,775,000 through 2024.
General Obligation Refunding Bonds, Series 2012, 2.00% to 3.00%, maturing in annual
installments of $225,000 to $1,295,000 through 2023.
111
CITY OF THE COLONY, TEXAS
NOTES TO FINANCIAL STATEMENTS
68
NOTE 5. LONG-TERM DEBT – CONTINUED
The following is a summary of long-term debt transactions, including current portion, of the City for
the year ended September 30, 2022:
Balance Balance Due
Beginning End Within
of Year Increases Decreases of Year One Year
Governmental Activities
Certificates of obligation 45,567,200$ 12,225,000$ (2,649,950)$ 55,142,250$ 2,851,150$
General obligation bonds 12,823,723 - (2,534,955) 10,288,768 1,938,971
Financed purchases 698,539 - (225,578) 472,961 225,577
Lease payables - 1,265,639 (211,651) 1,053,988 194,185
Unamortized bond premium 4,695,639 1,889,011 (559,241) 6,025,409 -
Net pension liability 9,400,684 - (5,342,352) 4,058,332 -
Total OPEB liability 1,114,079 73,614 - 1,187,693 -
Compensated absences 3,252,271 3,130,545 (2,999,840) 3,382,976 3,252,272
Governmental activities
Long-term debt 77,552,135$ 18,583,809$ (14,523,567)$ 81,612,377$ 8,462,155$
Business-Type Activities
Certificates of obligation 45,517,800$ 8,150,000$ (2,455,050)$ 51,212,750$ 2,673,850$
General obligation bonds 14,046,277 - (3,125,045) 10,921,232 3,061,029
Unamortized bond premium 4,866,912 545,326 (515,924) 4,896,314 -
Net pension liability 1,460,201 - (908,051) 552,150 -
Total OPEB liability 162,376 - (478) 161,898 -
Compensated absences 372,291 967,730 (946,824) 393,197 387,527
Business-type activities
Long-term debt 66,425,857$ 9,663,056$ (7,951,372)$ 68,137,541$ 6,122,406$
Component Units
Revenue bonds 203,645,000$ -$ (3,980,000)$ 199,665,000$ 4,270,000$
Unamortized bond discount (2,978,839) - 136,121 (2,842,718) -
Compensated absences 95,576 63,788 (59,934) 99,430 95,576
Component units
Long-term debt 200,761,737$ 63,788$ (3,903,813)$ 196,921,712$ 4,365,576$
The City intends to retire all of its general long-term liabilities, plus accrued interest, from ad valorem
taxes and other current revenues from the Debt Service Fund as has been done in prior years. The
proprietary fund type long-term debt, plus accrued interest, will be repaid from operating revenues of
the Water and Sewer Enterprise Fund. The general fund has typically been used to liquidate the
liability for compensated absences for governmental activities which are normally liquidated during
the current year.
In May 2022, the City issued $20,375,000 of Combination Tax and Limited Surplus Revenue
Certificates of Obligation, Series 2022, at a premium of $1,363,316. The proceeds from the
certificates of obligation of proceeds will be used for capital projects. $12,225,000 of the bonds were
recorded in the governmental activities and $8,150,000 were recorded in the business-type activities.
112
CITY OF THE COLONY, TEXAS
NOTES TO FINANCIAL STATEMENTS
69
NOTE 5. LONG-TERM DEBT – CONTINUED
Nebraska Furniture Mart
During March 2012, the TCEDC, TCCDC and TCLDC individually entered into a pledge agreement
where the consideration of future sales tax revenue from the tax increment reinvestment zone would
be used to repay debt issued by the component units to provide funding for the Nebraska Furniture
Mart Texas project. This pledge was effectively an incentive agreement to secure the development
of Nebraska Furniture Mart, through NFM Services, within the City of The Colony.
TCEDC and TCCDC have each pledged a portion of their future sales tax revenues to repay
$29,580,000 of sales tax revenue bond series 2013 that each corporation issued in February 2013 to
finance the acquisition of land and cost of construction and infrastructure associated with the
Nebraska Furniture Mart Texas project. Total principal and interest remaining on each issuance is
approximately $59 million as of September 30, 2022. Interest and principal paid and incremental sales
tax revenues recognized were $2,412,825 and $4,449,111, respectively, for TCCDC and $3,020,793
and $4,449,111, respectively, for TCEDC with regards to each corporation’s 2013 bond series during
the year ended September 30, 2022.
TCLDC has pledged a portion of its future sales tax revenues to repay $142,080,000 of sales tax
incremental contract revenue bonds that the Corporation issued in February 2013 to finance
the acquisition of land and cost of construction and infrastructure associated with the Nebraska
Furniture Mart Texas project. Total principal and interest remaining on these bonds is approximately
$270.6 million as of September 30, 2022. Interest and principal paid and incremental sales tax
revenues recognized were $7,621,658 and $8,898,231, respectively, during the year ended
September 30, 2022.
Description to Debt Indentures
Certificate of Obligation Bonds
The City issues certificate of obligation bonds to provide funds for the acquisition and construction
of major capital facilities and infrastructure. The City is required by ordinance to create from ad
valorem tax revenues a sinking fund sufficient to pay the current interest and principal installments
as they become due.
Revenue Bonds
The City issues revenue bonds to construct water and sewer system improvements. The City is
required by the applicable revenue bond indentures to pledge the net revenues of the Water and
Sewer Enterprise Fund for the retirement of its outstanding revenue bonds, including interest
thereon, and is required to maintain debt service funds and bond reserve funds for all such bonds
outstanding.
Bond Compliance
There are a number of limitations and restrictions contained in the various bond indentures. The
City is in compliance with all significant limitations and restrictions at September 30, 2022.
113
CITY OF THE COLONY, TEXAS
NOTES TO FINANCIAL STATEMENTS
70
NOTE 5. LONG-TERM DEBT – CONTINUED
Annual Requirements to Retire Debt Obligations
The annual aggregate maturities for each bond type for the years subsequent to September 30,
2022, are as follows:
Certificate of Obligation Bonds
Annual debt service requirements to maturity for certificate obligation bonds, including interest of
$19,331,329 for governmental activities, and $17,614,184 for business-type activities are as
follows:
Governmental Activities
Fiscal Year Ending
September 30 Principal Interest Total
2023 2,851,150$ 2,230,748$ 5,081,898$
2024 2,898,650 2,007,611 4,906,261
2025 2,902,400 1,876,645 4,779,045
2026 3,043,500 1,742,726 4,786,226
2027 3,167,350 1,604,833 4,772,183
2028-2032 15,064,650 6,110,281 21,174,931
2033-2037 16,432,200 3,078,236 19,510,436
2038-2042 8,782,350 680,249 9,462,599
Total 55,142,250$ 19,331,329$ 74,473,579$
Fiscal Year Ending
September 30 Principal Interest Total
2023 $ 2,673,850 $ 2,077,831 $ 4,751,681
2024 2,841,350 1,888,703 4,730,053
2025 2,907,600 1,759,067 4,666,667
2026 2,916,500 1,626,912 4,543,412
2027 3,027,650 1,503,154 4,530,804
2028-2032 16,000,350 5,725,262 21,725,612
2033-2037 14,837,800 2,502,815 17,340,615
2038-2042 6,007,650 530,440 6,538,090
Total $ 51,212,750 $ 17,614,184 $ 68,826,934
Business-Type Activities
114
CITY OF THE COLONY, TEXAS
NOTES TO FINANCIAL STATEMENTS
71
NOTE 5. LONG-TERM DEBT – CONTINUED
Annual Requirements to Retire Debt Obligations – Continued
General Obligation Bonds
Annual debt service requirements to maturity for general obligation bonds, including interest of
$1,682,675 for governmental activities, $1,119,464 for business-type activities are as follows:
Fiscal Year Ending
September 30 Principal Interest Total
2023 1,938,971$ 428,000$ $ 2,366,971
2024 1,785,587 353,248 2,138,835
2025 1,485,391 281,123 1,766,514
2026 1,540,196 224,500 1,764,696
2027 1,333,570 165,630 1,499,200
2028-2032 2,205,053 230,174 2,435,227
Total 10,288,768$ 1,682,675$ 11,971,443$
Governmental Activities
Fiscal Year Ending
September 30 Principal Interest Total
2023 3,061,029$ 411,448$ $ 3,472,477
2024 3,094,413 294,776 3,389,189
2025 1,729,609 169,803 1,899,412
2026 1,784,804 113,977 1,898,781
2027 531,430 56,297 587,727
2028-2032 719,947 73,163 793,110
Total 10,921,232$ 1,119,464$ 12,040,696$
Business-Type Activities
115
CITY OF THE COLONY, TEXAS
NOTES TO FINANCIAL STATEMENTS
72
NOTE 5. LONG-TERM DEBT – CONTINUED
Annual Requirements to Retire Debt Obligations – Continued
Revenue Bonds
Revenue bond debt service requirements to maturity, including interest of $162,945,183 for
component unit activities are as follows:
Fiscal Year Ending
September 30 Principal Interest Total
2023 4,270,000$ 10,777,604$ $ 15,047,604
2024 4,575,000 10,597,010 15,172,010
2025 4,900,000 10,396,645 15,296,645
2026 5,255,000 10,177,832 15,432,832
2027 5,620,000 9,938,512 15,558,512
2028-2032 34,520,000 45,253,941 79,773,941
2033-2037 41,005,000 35,443,627 76,448,627
2038-2042 51,915,000 22,574,622 74,489,622
2043-2047 39,815,000 7,405,160 47,220,160
2048-2051 7,790,000 380,230 8,170,230
Total 199,665,000$ 162,945,183$ 362,610,183$
Component-Units
116
CITY OF THE COLONY, TEXAS
NOTES TO FINANCIAL STATEMENTS
73
NOTE 5. LONG-TERM DEBT – CONTINUED
Annual Requirements to Retire Debt Obligations – Continued
Financed Purchases
During 2015, the City entered into a financed purchase agreement of $1,641,970 with principal
and interest from 2.63% to 3.29% being paid through fiscal year 2024. Proceeds which has been
recorded as capital assets. Future lease payments are paid through the City’s debt service fund
and are as follows:
Governmental Activities
Fiscal Year Ending
September 30 Principal Interest Total
2023 225,577$ 15,088$ 240,665$
2024 247,384 7,664 255,048
Total 472,961$ 22,752$ 495,713$
Right-to-Use Lease Liability
The City has entered into multiple lease agreements as lessee. The leases allow the right-to-use
and equipment over the term of the lease. The City is required to make monthly or annual
payments at its incremental borrowing rate or the interest rate stated or implied within the leases.
The lease rate, term and ending lease liability are as follows:
Description Interest rate
Payable at
commencment
Lease
term in
years Ending Balance
Printers and mail machines 0.19%-1.91% 194,064$ 2-4 147,997$
Fire equipment 2.70% 1,071,575 6 905,991
Total governmental activities 1,053,988$
Year Ended
September 30, Principal Interest Total
2023 194,185$ 25,354$ 219,539$
2024 196,454 21,212 217,666
2025 185,109 16,982 202,091
2026 160,016 12,745 172,761
2027 156,992 8,592 165,584
2028-2032 161,232 4,353 165,585
1,053,988$ 89,238$ 1,143,226$
117
CITY OF THE COLONY, TEXAS
NOTES TO FINANCIAL STATEMENTS
74
NOTE 5. LONG-TERM DEBT – CONTINUED
Net Pension Liability/ OPEB liability
The general fund has typically been used to liquidate governmental activities’ pension and OPEB
liabilities.
NOTE 6. TRANSFERS AND INTERFUND RECEIVEABLES/PAYABLES
All interfund transfers between the various funds are approved supplements to the operations of those
funds. Individual fund transfers for fiscal year 2022 were as follows:
Transfers Out Transfers In Amount Purpose
General Fund Non-major Funds 470,000$ Funding for special events and programs
Capital Projects Fund Debt Service Fund 16,792 Funding for debt financed capital projects
Non-major Funds General Fund 95,000 Funding for capital projects
Non-major Funds Utility Fund 100,000 Funding for capital projects
Non-major Funds Non-major Funds 250,792 Funding for public safety and special events
Total 932,584$
NOTE 7. RETIREMENT PLAN
A. Plan Description
The City participates as one of 901 plans in the defined benefit cash-balance plan administered
by the Texas Municipal Retirement System (TMRS). TMRS is statewide public retirement plan
created by the State of Texas and administered in accordance with the TMRS Act, Subtitle G,
Title 8, Texas Government Code (the TMRS Act) as an agent multiple-employer retirement
system for employees of Texas participating cities. The TMRS Act places the general
administration and management of TMRS with a six-member Governor-appointed Board of
Trustees; however, TMRS is not fiscally dependent on the State of Texas. TMRS’ defined benefit
pension plan is a tax-qualified plan under Section 401(a) of the Internal Revenue Code. TMRS
issues a publicly available annual comprehensive financial report that can be obtained at
www.tmrs.com.
All eligible employees of the City are required to participate in TMRS.
B. 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 member’s contributions, with interest,
and the city-financed monetary credits with interest. The retiring member may choose to receive
their retirement benefit in one of seven payments options. Members may also choose to receive
a portion of their benefit as a Partial Lump Sum Distribution in an amount equal to 12, 24, or 36
monthly payments, which cannot exceed 75% of the member’s deposits and interest.
118
CITY OF THE COLONY, TEXAS
NOTES TO FINANCIAL STATEMENTS
75
NOTE 7. RETIREMENT PLAN – CONTINUED
B. Benefits Provided – Continued
At the date the plan began, the City granted monetary credits for service rendered before the plan
began of a theoretical amount at least equal to two times what would have been contributed by
the employee, with interest, prior to establishment of the plan. Monetary credits for service since
the plan began are a percent (100%, 150%, or 200%) of the employee's accumulated
contributions. In addition, the City can grant, as often as annually, another type of monetary credit
referred to as an updated service credit which is a theoretical amount which, when added to the
employee's accumulated contributions and the monetary credits for service since the plan began,
would be the total monetary credits and employee contributions accumulated with interest if the
current employee contribution rate and city matching percent had always been in existence and
if the employee's salary had always been the average of his salary in the last three years that are
one year before the effective date.
At retirement, the benefit is calculated as if the sum of the employee's accumulated contributions
with interest and the employer-financed monetary credits with interest were used to purchase an
annuity.
Members can retire at ages 60 and above with 5 or more years of service or with 20 years of
service. A member is vested after 5 years. The plan provisions are adopted by the governing body
of the City, within the options available in the state statutes governing TMRS and within the
actuarial constraints also in the statutes.
At the December 31, 2021 valuation and measurement date, the following employees were
covered by the benefit terms:
Inactive employees or beneficiaries currently receiving benefits 219
Inactive employees entitled to but not yet receiving benefits 217
Active employees 380
816
C. Contributions
The contribution rates for employees in TMRS are either 5%, 6%, or 7% of employee gross
earnings, and the city matching percentages are either 100%, 150%, or 200%, both as adopted
by the governing body of the city. Under the state law governing TMRS, the contribution rate for
each city is determined annually by the actuary, using the Entry Age Normal (EAN) actuarial cost
method. The actuarially determined rate is the estimated amount necessary to finance the cost of
benefits earned by employees during the year, with an additional amount to finance any unfunded
accrued liability.
Employees for the City were required to contribute 7% of their annual gross earnings during the
fiscal year. The contribution rates for the City was 13.49% and 13.47% for calendar years 2021
and 2022, respectively. The City’s contributions to TMRS for the year ended September 30, 2022
were $3,861,496, and were equal to the required contributions.
119
CITY OF THE COLONY, TEXAS
NOTES TO FINANCIAL STATEMENTS
76
NOTE 7. RETIREMENT PLAN – CONTINUED
D. Net Pension Liability
The City’s Net Pension Liability (NPL) was measured as of December 31, 2021 and the Total
Pension Liability (TPL) used to calculate the NPL was determined by an actuarial valuation as of
that date.
Actuarial Assumptions:
The Total Pension Liability in the December 31, 2021 actuarial valuation was determined
using the following actuarial assumptions:
Inflation 2.5% per year
Overall payroll growth 3.5% to 11.5% per year including inflation
Investment Rate of Return 6.75%
Amortization method Level percentage of payroll, closed
Actuarial cost method Entry Age Normal
Salary increases are based on a service-related table. Mortality rates for active members are
based on the PUB(10) mortality tables with the Public Safety table used for males and the
General Employee table used for females. Mortality rates for healthy retirees and beneficiaries
are based on the Gender-distinct 2019 Municipal Retirees of Texas mortality tables. The rates
for actives, healthy retirees and beneficiaries are projected on a fully generational basis by
Scale UMP to account for future mortality improvements. For disabled annuitants, the same
mortality tables for healthy retirees is 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 Scale UMP to account for
future mortality improvements subject to the floor..
The actuarial assumptions were developed primarily from the actuarial investigation of
the experience of TMRS over the four-year period from December 31, 2014 to December 31,
2018. They were adopted in 2019 and first used in the December 31, 2019 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 in order to satisfy the short-term
and long-term funding needs of TMRS.
120
CITY OF THE COLONY, TEXAS
NOTES TO FINANCIAL STATEMENTS
77
NOTE 7. RETIREMENT PLAN – CONTINUED
D. Net Pension Liability – Continued
Actuarial Assumptions – Continued
The long-term expected rate of return on pension plan investments was determined using a
building-block method in which best estimate ranges of expected future real rates of return
(expected returns, net of pension plan investment expense and inflation) are developed for
each major asset class. These ranges are combined to produce the long-term expected rate
of return by weighting the expected future real rates of return by the target asset allocation
percentage and by adding expected inflation. In determining their best estimate of a
recommended investment return assumption under the various alternative asset allocation
portfolios, GRS focused on the area between (1) arithmetic mean (aggressive) without an
adjustment for time(conservative) and (2) the geometric mean (conservative) with an
adjustment for time (aggressive).
The target allocation and best estimates of arithmetic real rates of return for each major asset
class are summarized in the following table:
Long-Term
Expected Real
Target Rate of Return
Asset Class Allocation (Arithmetic)
Global Equity 35.0% 7.55%
Core Fixed Income 6.0% 2.00%
Non-Core Fixed Income 20.0% 5.68%
Other Public and Private Markets 12.0% 7.22%
Real Estate 12.0% 6.85%
Hedge Funds 5.0% 5.35%
Private Equity 10.0% 10.00%
Total 100.0%
Discount Rate
The discount rate used to measure the Total Pension Liability was 6.75%. The projection of
cash flows used to determine the discount rate assumed that employee and employer
contributions will be made at the rates specified in statute. Based on that assumption, the
pension plan’s Fiduciary Net Position was projected to be available to make all projected
future benefit payments of current active and inactive employees. Therefore, the long-term
expected rate of return on pension plan investments was applied to all periods of projected
benefit payments to determine the Total Pension Liability.
121
CITY OF THE COLONY, TEXAS
NOTES TO FINANCIAL STATEMENTS
78
NOTE 7. RETIREMENT PLAN – CONTINUED
D. Net Pension Liability – Continued
Allocations
The City’s net pension liability, pension expense, and deferred outflows of resources related
to TMRS have been allocated between governmental activities and business-type activities
using a contribution-based method.
Changes in the Net Pension Liability
Total Plan Net
Pension Fiduciary Pension
Liability Net Position Liability
(a) (b) (a) - (b)
Balance at 12/31/2020 114,031,369$ 103,170,484$ 10,860,885$
Changes for the year:
Service Cost 4,833,901 - 4,833,901
Interest 7,705,205 - 7,705,205
Change of benefit terms - - -
Difference between expected and
actual experience 475,568 - 475,568
Changes of assumptions - - -
Contributions - employer - 3,861,496 (3,861,496)
Contributions - employee - 2,003,458 (2,003,458)
Net investment income - 13,461,929 (13,461,929)
Benefit payments, including refunds
of employee contributions (4,594,279) (4,594,279) -
Administrative expense - (62,232) 62,232
Other changes - 426 (426)
Net Changes 8,420,395 14,670,798 (6,250,403)
Balance at 12/31/21 122,451,764$ 117,841,282$ 4,610,482$
Increase (Decrease)
Net Pension Liability as a percentage of covered employee payroll 16.11%.
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability 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 1% Increase
in Discount Discount in Discount
Rate (5.75%) Rate (6.75%) Rate (7.75%)
Net pension liability 22,351,875$ 4,610,482$ (9,957,658)$
122
CITY OF THE COLONY, TEXAS
NOTES TO FINANCIAL STATEMENTS
79
NOTE 7. RETIREMENT PLAN – CONTINUED
D. Net Pension Liability – Continued
Pension Plan Fiduciary Net Position
Detailed information about the pension plan’s Fiduciary Net Position is available in a
separately-issued TMRS financial report. That report may be obtained at www.tmrs.com.
E. Pension Expense and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions
For the year ended September 30, 2022, the City recognized pension expense of $7,005,692. At
September 30, 2022, the City reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual economic experience 1,311,126$ 39,247$
Changes in actuarial assumptions 178,470 -
Difference between projected and actual investment earnings - 6,888,843
Contributions subsequent to the measurement date 3,043,284 -
Total 4,532,880$ 6,928,090$
The $3,043,284 reported as deferred outflows of resources related to pensions result from
contributions subsequent to the measurement date and will reduce the net pension liability during
the fiscal year ending September 30, 2023. The other amounts reported as deferred outflows and
inflows of resources related to pensions will be recognized in pension expense as follows:
Net deferred
Fiscal outflows
Year Ended (inflows) of
Sept. 30: resources
2023 (682,436)$
2024 (2,299,883)
2025 (1,238,314)
2026 (1,217,861)
(5,438,494)$
123
CITY OF THE COLONY, TEXAS
NOTES TO FINANCIAL STATEMENTS
80
NOTE 8. DEFERRED COMPENSATION PLAN
The City participates in a deferred compensation plan, which falls under Internal Revenue Code
Section 457. Virtually all employees are eligible to participate in the plan. The deferred compensation
plan allows the deferral of individual federal income taxes until funds are withdrawn. Funds may be
withdrawn at termination, retirement, death or unforeseeable emergency. Employees may contribute
a maximum of 100% of compensation included in gross income or $15,500 whichever is less.
As a result of legislative changes, all amounts of compensation deferred, all property and rights
purchased, and all income, property or rights are (until paid or made available to the employee or
other beneficiary) held in trust for the exclusive benefit of the participants and their beneficiaries,
whereas, prior to these legislative changes, these amounts were solely the property and rights of the
City subject only to the claims of the City’s general creditors. As a result, at September 30, 2022, the
deferred compensation plan is not reported in the City’s financial statements.
NOTE 9. OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN
A. Plan Description
Texas Municipal Retirement System (“TMRS”) administers a defined benefit group-term life
insurance plan known as the Supplemental Death Benefits Fund (“SDBF”). This is a voluntary
program in which participating member cities may elect, by ordinance, to provide group-term life
insurance coverage for their active members, including or not including retirees. Employers may
terminate coverage under and discontinue participation in the SDBF by adopting an ordinance
before November 1 of any year to be effective the following January 1.The City has elected to
participate in the SDBF for its active members including retirees. As the SDBF covers both active
and retiree participants, with no segregation of assets, the SDBF is considered to be an unfunded
single-employer OPEB plan (i.e. no assets are accumulated in a trust that meets the criteria in
paragraph 4 of GASB Statement No. 75) for City reporting.
B. Benefits Provided
The death benefit for active employees provides a lump-sum payment approximately equal to the
employee’s annual salary (calculated based on the employee’s actual earnings, for the 12-month
period preceding the month of death). The death benefit for retirees is considered another
postemployment benefit (“OPEB”) and is a fixed amount of $7,500.
At the December 31, 2021 valuation and measurement date, the following employees were
covered by the benefit terms:
Inactive employees or beneficiaries currently receiving benefits 149
Inactive employees entitled to but not yet receiving benefits 47
Active employees 380
576
124
CITY OF THE COLONY, TEXAS
NOTES TO FINANCIAL STATEMENTS
81
NOTE 9. OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN – CONTINUED
C. Contributions
The member city contributes to the SDBF at a contractually required rate as determined by an
annual actuarial valuation. The rate is equal to the cost of providing one-year term life insurance.
The funding policy for the SDBF program is to assure that adequate resources are available to
meet all death benefit payments for the upcoming year. The intent is not to pre-fund retiree term
life insurance during employees’ entire careers.
Contributions are made monthly based on the covered payroll of employee members of the
participating member city. The contractually required contribution rate is determined annually for
each city. The rate is based on the mortality and service experience of all employees covered by
the SDBF and the demographics specific to the workforce of the city. There is a one-year delay
between the actuarial valuation that serves as the basis for the employer contribution rate and
the calendar year when the rate goes into effect. The funding policy of this plan is to assure that
adequate resources are available to meet all death benefit payments for the upcoming year.
The retiree portion of contribution rates to the SDBF for the City was 0.15% and 0.16% for
calendar years 2021 and 2022, respectively. The City’s contributions to the SDBF for the year
ended September 30, 2022 were $20,034 and were equal to the required contributions.
D. Total OPEB Liability
The City’s Total OPEB Liability (TOL) was measured as of December 31, 2021 and was
determined by an actuarial valuation as of that date.
E. Actuarial Assumptions
The Total OPEB Liability in the December 31, 2021 actuarial valuation was determined using the
following actuarial assumptions:
Inflation 2.5% per year
Salary increases 3.50% to 11.50%, including inflation
Discount rate 1.84%
Retiree's share of benefit-related cost $0
Actuarial cost method Entry Age Normal
Amortization method Level percentage of payroll; closed
Salary increases were based on a service-related table. Mortality rates for post-retirement were
based on the 2019 Municipal Retirees of Texas Mortality Tables. The rates are projected on a fully
generational basis with scale UMP. Mortality rates for preretirement were based on PUB(10)
mortality tables, with the Public Safety table used for males and the General Employee table used
for females. The rates are projected on a fully generational basis with scale UMP.
125
CITY OF THE COLONY, TEXAS
NOTES TO FINANCIAL STATEMENTS
82
NOTE 9. OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN – CONTINUED
Actuarial assumptions used in the December 31, 2021 valuation were developed primarily from
the actuarial investigation of the experience of TMRS over the four-year period from December 31,
2014 to December 31, 2018. They were first adopted in 2019 and first used in the December 31,
2019 actuarial valuation.
The discount rate used to measure the Total OPEB Liability was 1.84% and was based on the
Fidelity Index’s “20-Year Municipal GO AA Index” rate as of December 31, 2021.
F. Changes in Total OPEB Liability
Increase (Decrease)
Total
OPEB
Liability
(a)
Balance at 12/31/2020 1,276,455$
Changes for the year:
Service Cost 71,550
Interest 26,044
Difference between expected and
actual experience (46,639)
Changes of assumptions 42,215
Benefit payments (20,034)
Net Changes 73,136
Balance at 12/31/2021 1,349,591$
Total OPEB Liability as a percentage of covered payroll 4.72%.
G. Sensitivity of the Total OPEB Liability to Changes in the Discount Rate
The following presents the total OPEB liability of the City, calculated using the discount rate of
1.84%, as well as what the City’s total OPEB liability would be if it were calculated using a discount
rate that is 1 percentage-point lower (0.84%) or 1 percentage-point higher (2.84%) than the
current rate:
1% Decrease 1% Increase
in Discount Discount in Discount
Rate (0.84%) Rate (1.84%) Rate (2.84%)
Total OPEB liability 1,653,719$ 1,349,591$ 1,112,625$
126
CITY OF THE COLONY, TEXAS
NOTES TO FINANCIAL STATEMENTS
83
NOTE 9. OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN – CONTINUED
H. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to OPEB
For the year ended September 30, 2022, the City recognized OPEB expense of $100,499. At
September 30, 2022, the City reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Changes in actuarial assumptions 269,835$ 25,306$
Difference between projected and actual investment earnings - 64,669
Contributions subsequent to the measurement date 36,149 -
Total 305,984$ 89,975$
The $36,149 reported as deferred outflows of resources related to OPEB resulting from
contributions subsequent to the measurement date will reduce the Total OPEB liability during the
year ending September 30, 2023. The other amounts reported as deferred outflows and inflows
of resources related to OPEB will be recognized in OPEB expense as follows:
Net deferred
Fiscal outflows
Year Ended (inflows) of
Sept. 30: resources
2023 44,781$
2024 41,993
2025 37,564
2026 38,784
2027 17,226
Thereafter (488)
179,860$
NOTE 10. COMMITMENTS AND CONTINGENCIES
Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor
agencies, principally the state government. Any disallowed claims, including amounts already
collected, may constitute a liability of the applicable funds.
The amount, if any, of expenditures which may be disallowed by the grantor agency cannot be
determined at this time although the City expects such amounts, if any, to be immaterial to the basic
financial statements.
127
CITY OF THE COLONY, TEXAS
NOTES TO FINANCIAL STATEMENTS
84
NOTE 10. COMMITMENTS AND CONTINGENCIES – CONTINUED
At September 30, 2022, certain claims and litigation against the City are pending with respect to
matters arising in the normal course of the City’s operations. City management is of the opinion that
the settlement of these matters will not have a material adverse effect on the City’s financial
statements.
At September 30, 2022, the City had authorized construction contract commitments of $3,716,237.
NOTE 11. RISK MANAGEMENT
The City is exposed to various risks of loss related to torts, theft of, damage to, and destruction of
assets; errors and omissions; injuries to employees; and natural disasters. During fiscal year 2022,
the City purchased commercial insurance to cover these liabilities. Additionally, the City purchases
commercial insurance to cover employee health benefits. There were no significant reductions in
coverage in the past fiscal year and there were no settlements exceeding insurance coverage in the
past three years.
NOTE 12. TAX ABATEMENTS
The City enters into economic development agreements authorized under Chapter 380 of the Texas
Local Government Code. These agreements are planning tools designed to stimulate economic
activity, redevelopment, community improvement, and provide a return on investment for the
community. These programs abate or rebate property and/or sales taxes and may include other
incentive payments such as fee reductions or construction costs reimbursements. Economic
development agreements are considered on a case by case basis by the City Council and generally
contain recapture provisions, which may require repayment or termination if recipients do not meet
the required provisions of the economic incentives.
Chapter 380 of the Texas Local Government Code allows the City to provide grants for the purpose
of promoting local economic development. These grants are based on a percentage of property
and/or sales tax received by the City. The City had the following agreements for the fiscal year ending
September 30, 2022.
Per the Grandscape, William Sonoma, and Top Golf TIF agreement for commercial
development of 433 undeveloped acres, 100% of the property tax collections from the TIRZ
projects and 90% of sales tax collections from TIRZ businesses were to be abated. The City
abated $1,867,950 in property taxes and $17,697,962 in sales taxes.
There was an agreement for Tribute properties to develop a 1,200-acre residential and golf
community within the City under which 50% of property taxes was agreed to be abated. The
City abated $2,031,811 in property taxes.
Per the Tribute TIF agreement to fund water storage tank and construction of fire station, and
improve roadways, marina park and entertainment district, 55% of property taxes from
development limited to total property taxes less the agreement stated above was agreed to
be abated. The City abated $1,162,318 in property taxes.
128
CITY OF THE COLONY, TEXAS
NOTES TO FINANCIAL STATEMENTS
85
NOTE 13. FUND BALANCE/NET POSITION
The composition of the City’s governmental fund balances as of September 30, 2022 is as follows:
Capital Pandemic Non major Total
General Debt Service Projects Response Governmental Governmental
Fund Fund Fund Fund Funds Funds
Non-spendable:
Inventory 150,963$ -$ -$ -$ -$ 150,963$
Prepaids 33,165 - - - 816 33,981
184,128 - - - 816 184,944
Restricted for:
Debt service - 5,416,036 - - - 5,416,036
Tourism 6,099,958 - - - 880,787 6,980,745
Police - - - - 84,695 84,695
Child Safety - - - - 135,779 135,779
Stormwater drainage - - - - 1,167,281 1,167,281
Court - - - - 468,598 468,598
PID No. 1 - - - - 286,289 286,289
Social and community services - - - - 179,186 179,186
Pandemic response - - - 72 - 72
Capital projects - - 23,279,419 - - 23,279,419
6,099,958 5,416,036 23,279,419 72 3,202,615 37,998,100
Committed for:
Parks - - - - 1,658,047 1,658,047
Unassigned 23,834,380 - - - (22,402) 23,811,978
Total 30,118,466$ 5,416,036$ 23,279,419$ 72$ 4,839,076$ 63,653,069$
Net position restricted for other reported for the governmental activities in the statement of net position
is comprised of the sum of the balances that are reported as restricted fund balances in the general
fund and the non-major governmental funds.
NOTE 14. SUBSEQUENT EVENTS
The City has evaluated all events or transactions that occurred after September 30, 2022 up through
June 20, 2023, the date the financial statements were issued. During this period, there were no
material subsequent events requiring recognition or additional disclosure in these financial
statements.
129
86
130
87
REQUIRED SUPPLEMENTARY
INFORMATION
131
EXHIBIT A-1
CITY OF THE COLONY, TEXAS
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS – TMRS
LAST EIGHT MEASUREMENT YEARS
88
Measurement
Year
Measurement
Year
Measurement
Year
Measurement
Year
Measurement
Year
Measurement
Year
Measurement
Year
Measurement
Year
2021 2020 2019 2018 2017 2016 2015 2014
Total pension liability:
Service cost 4,833,901$ 4,598,382$ 4,260,983$ 3,870,905$ 3,593,344$ 3,247,190$ 3,038,645$ 2,636,444$
Interest 7,705,205 7,143,318 6,525,581 6,090,550 5,640,026 5,246,784 4,956,953 4,717,021
Difference between expected and actual
experience 475,568 686,320 1,392,962 (201,099) 653,253 395,250 681,456 (1,078,676)
Change in assumptions - - 469,452 - - - 1,451,967 -
Benefit payments, including refunds of
employee contributions (4,594,279) (3,848,793) (3,483,246) (3,537,724) (3,164,226) (3,308,765)(3,324,791) (2,771,781)
Net change in total pension liability 8,420,395 8,579,227 9,165,732 6,222,632 6,722,397 5,580,459 6,804,230 3,503,008
Total pension liability - beginning 114,031,369 105,452,142 96,286,410 90,063,778 83,341,381 77,760,922 70,956,692 67,453,684
Total pension liability - ending (a) 122,451,764 114,031,369 105,452,142 96,286,410 90,063,778 83,341,381 77,760,922 70,956,692
Plan fiduciary net position:
Contributions - employer 3,861,496 3,509,336 3,330,020 3,044,002 2,825,357 2,343,572 2,336,643 2,051,029
Contributions - employee 2,003,458 1,900,158 1,790,133 1,630,948 1,512,532 1,360,283 1,309,761 1,179,152
Net investment income 13,461,929 7,176,504 12,447,283 (2,451,824) 9,825,153 4,466,472 96,983 3,534,120
Benefit payments, including refunds of
employee contributions (4,594,279) (3,848,793) (3,483,246) (3,537,724) (3,164,226) (3,308,765)(3,324,791) (2,771,781)
Administrative expense (62,232) (46,406) (70,294) (47,376) (50,917) (50,436) (59,070) (36,893)
Other 426 (1,811) (2,113) (2,475) (2,581) (2,717) (2,918) (3,033)
Net change in plan fiduciary net position 14,670,798 8,688,988 14,011,783 (1,364,449) 10,945,318 4,808,409 356,608 3,952,594
Plan fiduciary net position - beginning 103,170,484 94,481,496 80,469,713 81,834,162 70,888,844 66,080,435 65,723,827 61,771,233
Plan fiduciary net position - ending (b) 117,841,282 103,170,484 94,481,496 80,469,713 81,834,162 70,888,844 66,080,435 65,723,827
Net pension liability - ending (a) - (b) 4,610,482$ 10,860,885$ 10,970,646$ 15,816,697$ 8,229,616$ 12,452,537$ 11,680,487$ 5,232,865$
Plan fiduciary net position as a
percentage of total pension liability 96.23% 90.48% 89.60% 83.57% 90.86% 85.06% 84.98% 92.63%
Covered payroll 28,619,902$ 27,145,113$ 25,576,127$ 23,248,678$ 21,607,602$ 19,432,616$ 18,710,868$ 16,838,560$
Net pension liability as a percentage
of covered payroll 16.11% 40.01% 42.89% 68.03% 38.09% 64.08% 62.43% 31.08%
Note: Only eight years of data is presented in accordance with GASB #68, paragraph 138,
“The information for all period for the 10-year schedules that are required to be presented as required
supplementary information may not be available initially. In these cases, during the transition period, that
information should be presented for as many periods as are available. The schedules should not include
information that is not measured in accordance with the requirements of this statement. Additional years’
information will be displayed as it becomes available.”
132
EXHIBIT A-2
CITY OF THE COLONY, TEXAS
SCHEDULE OF PENSION CONTRIBUTIONS – TMRS
LAST EIGHT FISCAL YEARS
89
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year
2022 2021 2020 2019 2018 2017 2016 2015
Actuarially determined contribution 3,861,496$ 3,770,299$ 3,477,782$ 3,247,835$ 2,998,437$ 2,723,827$ 2,399,108$ 2,224,043$
Contribution in relation of the actuarially
determined contribution 3,861,496 3,770,299 3,477,782 3,247,835 2,998,437 2,723,827 2,399,108 2,224,043
Contribution deficiency (excess) -$ -$ -$ -$ -$ -$ -$ -$
Covered payroll 30,774,816$ 28,244,747$ 26,570,811$ 24,667,651$ 22,698,203$ 19,440,612$ 19,236,056$ 19,145,821$
Contributions as a percentage of
covered payroll 12.55% 13.35% 13.09% 13.17% 13.21% 14.01% 12.47% 11.62%
Note: GASB #68, paragraph 81.2.b requires that the data in this schedule be presented as of the City’s fiscal year
as opposed to the time period covered by the measurement date.
Note: Only eight years of data is presented in accordance with GASB #68, paragraph 138, “The information for all
period for the 10-year schedules that are required to be presented as required supplementary information may not
be available initially. In these cases, during the transition period, that information should be presented for as many
periods as are available. The schedules should not include information that is not measured in accordance with the
requirements of this statement. Additional years’ information will be displayed as it becomes available.”
133
EXHIBIT A-3
CITY OF THE COLONY, TEXAS
SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS – TMRS
LAST FIVE MEASUREMENT YEARS
90
Measurement
Year
Measurement
Year
Measurement
Year
Measurement
Year
Measurement
Year
2021 2020 2019 2018 2017
Total OPEB liability:
Service cost 71,550$ 57,005$ 40,922$ 41,848$ 32,411$
Interest 26,044 29,359 30,875 28,018 27,153
Differences between expected
and actual experience (46,639) (17,505) (11,620) (15,239) -
Change in assumptions 42,215 171,209 172,459 (62,382) 69,501
Benefit payments (20,034) (5,429) (5,115) (6,975) (4,322)
Net change in total pension liability 73,136 234,639 227,521 (14,730) 124,743
Total OPEB liability - beginning 1,276,455 1,041,816 814,295 829,025 704,282
Total OPEB liability - ending (a) 1,349,591$ 1,276,455$ 1,041,816$ 814,295$ 829,025$
Covered-employee payroll 28,619,902$ 27,145,113$ 25,576,127$ 23,248,678$ 21,607,602$
Total OPEB liability as a percentage
of covered-employee payroll 4.72% 4.70% 4.07% 3.50% 3.84%
Note: Only five years of data is presented in accordance with GASB #75. Additional years’ information will be
displayed as it becomes available.
The TMRS Supplementary Death Benefit Fund (SDBF) is considered to be an unfunded OPEB plan; therefore, no
plan fiduciary net position and related ratios are reported in the above schedule.
134
EXHIBIT A-4
CITY OF THE COLONY, TEXAS
SCHEDULE OF OPEB CONTRIBUTIONS – TMRS
LAST FIVE FISCAL YEARS
91
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year
2022 2021 2020 2019 2018
Actuarially determined contribution 20,034$ 15,868$ 5,365$ 5,653$ 6,186$
Contribution in relation of the actuarially
determined contribution 20,034 15,868 5,365 5,653 6,186
Contribution deficiency (excess) -$ -$ -$ -$ -$
Covered-employee payroll 30,774,816$ 28,244,747$ 26,570,811$ 24,667,651$ 22,698,203$
Contributions as a percentage of
covered-employee payroll 0.07% 0.06% 0.02% 0.02% 0.03%
Note: Only five years of data is presented in accordance with GASB #75. Additional years’ information will be
displayed as it becomes available.
The TMRS Supplementary Death Benefit Fund (SDBF) is considered to be an unfunded OPEB plan; therefore, no
plan fiduciary net position and related ratios are reported in the above schedule.
135
EXHIBIT A-5
CITY OF THE COLONY, TEXAS
GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
YEAR ENDED SEPTEMBER 30, 2022
92
VARIANCE WITH
FINAL BUDGET -
POSITIVE
ORIGINAL FINAL ACTUAL (NEGATIVE)
REVENUES
Ad valorem taxes, penalties and interest 29,687,026$ 29,687,026$ 29,245,888$ (441,138)$
Franchise taxes 2,650,000 2,650,000 2,873,419 223,419
Municipal sales tax 8,450,000 8,450,000 11,426,569 2,976,569
Licenses and permits 1,287,670 1,287,670 2,757,342 1,469,672
Charge for services 1,562,030 1,562,030 1,941,188 379,158
Fines and forfeitures 560,000 560,000 1,087,855 527,855
Grants 390,000 390,000 406,265 16,265
Gifts and Contributions 943,857 943,857 943,857 -
Investment income 26,000 26,000 374,332 348,332
Miscellaneous 556,500 556,500 1,639,392 1,082,892
Total revenues 46,113,083 46,113,083 52,696,107 6,583,024
EXPENDITURES
Current:
General government:
Community image 531,973 561,335 639,705 (78,370)
General administration 1,779,349 1,802,893 1,362,011 440,882
City secretary 429,893 440,176 386,859 53,317
City council 88,520 88,520 43,252 45,268
Human resources 685,357 720,557 848,730 (128,173)
Finance 1,296,299 1,317,284 1,369,487 (52,203)
Information technology 1,024,817 1,061,893 1,044,044 17,849
Nondepartmental 3,673,739 3,648,647 2,827,062 821,585
Fleet services 1,190,378 1,214,655 1,336,134 (121,479)
Public safety:
Municipal court 487,265 518,841 473,836 45,005
Fire 11,916,713 12,876,908 12,161,030 715,878
Police 13,143,094 14,658,022 13,970,433 687,589
Public works:
Engineering 2,191,824 2,356,566 2,245,272 111,294
Facilities maintenance 1,562,699 1,755,275 1,894,360 (139,085)
Culture and recreation:
Parks and recreation 2,592,579 2,825,650 2,558,284 267,366
Aquatic park 572,320 581,536 548,616 32,920
Library 1,269,344 1,310,820 1,222,300 88,520
Community center 246,936 282,092 294,733 (12,641)
Total expenditures 44,683,099 48,021,670 45,226,148 2,795,522
Excess (deficiency) of revenues
over (under) expenditures 1,429,984 (1,908,587) 7,469,959 9,378,546
OTHER FINANCING SOURCES (USES)
Proceeds from leases - - 97,920 97,920
Transfers from other funds 95,000 95,000 95,000 -
Transfers to other funds (80,000) (80,000) (470,000) (390,000)
Total other financing sources (uses)15,000 15,000 (277,080) (292,080)
NET CHANGE IN FUND BALANCE 1,444,984 (1,893,587) 7,192,879 9,086,466
FUND BALANCES, BEGINNING OF YEAR 22,925,587 22,925,587 22,925,587 -
FUND BALANCES, END OF YEAR 24,370,571$ 21,032,000$ 30,118,466$ 9,086,466$
BUDGETED AMOUNTS
136
CITY OF THE COLONY, TEXAS
NOTES TO BUDGETARY COMPARISON SCHEDULE
YEAR ENDED SEPTEMBER 30, 2022
93
BUDGETARY INFORMATION
The City Council adheres to the following procedures in establishing the budgets reflected in the
financial statements:
1. Prior to July 31, the City Manager submits to the City Council a proposed operating budget
for the fiscal year commencing the following October 1. The operating budget includes
proposed expenditures and the means of financing them.
3. The proposed budget is filed with the City Secretary not less than 30 days prior to the time
the City Council approves the tax levy for the fiscal year commencing the following
October 1. Public hearings are conducted to obtain taxpayers' comments.
3. Prior to October 1, the budget is legally enacted by the City Council through passage of an
ordinance.
4. The City Manager has authority to transfer appropriation balances from one expenditure
account to another within a single department of the City. Only the City Council may transfer
any unencumbered appropriation balance or portion thereof from one department to another.
Appropriations lapse at the end of the fiscal year.
An annual budget is legally adopted for the General Fund using accounting principles generally
accepted in the United States of America in all material respects.
Expenditures exceeded appropriations in the general fund as follows during the year ended
September 30, 2022:
Community image ($78,370)
Human Resources ($128,173)
Finance ($52,203)
Fleet Services ($121,479)
Facilities maintenance ($139,085)
Community center ($12,641)
137
94
138
95
COMBINING AND INDIVIDUAL FUND FINANCIAL
STATEMENTS AND SCHEDULES
139
96
DEBT SERVICE FUND
The Debt Service Fund is used to account for the accumulation of resources for and the payment of
general obligation bonds and interest from governmental resources.
140
EXHIBIT B-1
CITY OF THE COLONY, TEXAS
DEBT SERVICE FUND
BUDGETARY COMPARISON SCHEDULE
FOR THE YEAR ENDED SEPTEMBER 30, 2022
97
VARIANCE WITH
FINAL BUDGET
POSITIVE
ORIGINAL FINAL ACTUAL (NEGATIVE)
REVENUES
Ad valorem tax 9,691,478$ 9,691,478$ 9,546,147$ (145,331)$
Investment income 40,000 40,000 65,246 25,246
Total revenues 9,731,478 9,731,478 9,611,393 (120,085)
EXPENDITURES
Debt service:
Principal retirement 5,410,483 5,410,483 5,410,483 -
Interest and fiscal charges 2,416,761 2,416,761 2,243,770 172,991
Total expenditures 7,827,244 7,827,244 7,654,253 172,991
Excess of revenues
over expenditures 1,904,234 1,904,234 1,957,140 52,906
NET CHANGE IN FUND BALANCES 1,904,234 1,904,234 1,973,932 69,698
FUND BALANCE, BEGINNING OF YEAR 3,442,104 3,442,104 3,442,104 -
FUND BALANCE, END OF YEAR 5,346,338$ 5,346,338$ 5,416,036$ 69,698$
BUDGETED AMOUNTS
141
98
142
NON-MAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
99
The Special Revenue Funds account for the proceeds of specific revenue sources (other than major capital
projects) that are legally restricted or committed to expenditures for specific purposes.
Lake Parks Fund – To account for revenue generated by fees and permits to enter and utilize the park area
and facilities located on the eastern shore of Lake Lewisville.
Special Events Fund – To account for various special events of the City including Christmas decorations,
4th of July fireworks display, and other special events held by the City.
Hotel/Motel Taxes Fund – To account for the receipt and allocation of the City’s hotel/motel occupancy tax.
Police Forfeited Fund – To account for the funds granted to the police department that have been awarded
by the court.
Federal Seized Fund – To account for funds granted to the police department in a revenue sharing
agreement with the federal government.
Police Seized Fund – To account for funds seized by the police department that are awaiting disposition by
the court.
Child Safety Fund – To account for child safety fees collected according to state statute to fund the school
crossing guard program and other programs designed to enhance child safety, health or nutrition.
Storm Water Utility Fund – To account for the revenue and expenses associated with the drainage projects
within the City.
Court Security Fund – To account for the revenue and expenditures associated with the portion of traffic
tickets that have been restricted for the security of the Municipal Court.
Court Technology Fund – To account for the revenue and expenditures associated with the portion of traffic
tickets restricted for upgrading the technology in the Municipal Court.
Keep The Colony Beautiful – To account for revenue and expenditures associated with the City-supported
community volunteer program designed to help property owners who can’t maintain their properties due to
financial or physical limitations.
Citizens Donations Fund – To account for money received from the $1 Add-On Program and the Recycling
Rebate Program. This money is restricted for social and community services, public safety citizen programs
and beautification projects.
Public Improvement District (PID) No.1 – To account for revenues and expenditures related to the City of
The Colony Public Improvement District No. 1.
Trinity North Medical – To account for revenues and expenditures related to the City of The Colony renting
out space in their building that is externally restricted.
Juvenile Case – To account for revenues and expenditures related to the City of The Colony’s juvenile court.
143
CITY OF THE COLONY, TEXAS
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 2022
100
HOTEL/ POLICE FEDERAL POLICE CHILD
LAKE SPECIAL MOTEL FORFEITED SEIZED SEIZED SAFETY
PARKS EVENTS TAXES FUND FUND FUND FUND
ASSETS
Cash and cash equivalents 1,794,553$ -$ 448,903$ 65,800$ 12,935$ 5,961 86,449$
Accounts receivable 1,363,635 - 460,114 - - 49,330
Prepaids - 816 - - - - -
TOTAL ASSETS 3,158,188$ 816$ 909,017$ 65,800$ 12,935$ 5,961$ 135,779$
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable and accrued expenses 29,108$ 9,300$ 28,230$ 1$ -$ -$ -$
Unearned revenue - - - - - - -
Due to other funds - 13,102 - - - - -
TOTAL LIABILITIES 29,108 22,402 28,230 1 - - -
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources - leases 1,471,033 - - - - - -
1,471,033 - - - - - -
FUND BALANCES
Non spendable - 816 - - - - -
Restricted - - 880,787 65,799 12,935 5,961 135,779
Committed 1,658,047 - - - - - -
Unassigned - (22,402) - - - - -
TOTAL FUND BALANCES (DEFICIT)1,658,047 (21,586) 880,787 65,799 12,935 5,961 135,779
TOTAL LIABILITIES DEFERRED INFLOWS
AND FUND BALANCES (DEFICIT) 3,158,188$ 816$ 909,017$ 65,800$ 12,935$ 5,961$ 135,779$
SPECIAL REVENUE
144
EXHIBIT C-1
101
TOTAL
STORM KEEP THE TRINITY NON-MAJOR
WATER COURT COURT COLONY CITIZENS PID NORTH JUVENILE GOVERNMENTAL
UTILITY SECURITY TECHNOLOGY BEAUTIFUL DONATIONS No. 1 MEDICAL CASE FUNDS
1,281,853$ 302,323$ 11,038$ 11,201$ 10,395$ 363,925$ 157,687$ 155,244$ 4,708,267$
- - - - - - - - 1,873,079
- - - - - - - - 816
1,281,853$ 302,323$ 11,038$ 11,201$ 10,395$ 363,925$ 157,687$ 155,244$ 6,582,162$
114,572$ 3$ 4$ -$ -$ 77,636$ 97$ -$ 258,951$
- - - - - - - - -
- - - - - - - - 13,102
114,572 3 4 - - 77,636 97 - 272,053
- - - - - - - - 1,471,033
- - - - - - - - 1,471,033
- - - - - - - - 816
1,167,281 302,320 11,034 11,201 10,395 286,289 157,590 155,244 3,202,615
- - - - - - - - 1,658,047
- - - - - - - - (22,402)
1,167,281 302,320 11,034 11,201 10,395 286,289 157,590 155,244 4,839,076
1,281,853$ 302,323$ 11,038$ 11,201$ 10,395$ 363,925$ 157,687$ 155,244$ 6,582,162$
SPECIAL REVENUE
145
CITY OF THE COLONY, TEXAS
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED SEPTEMBER 30, 2022
102
HOTEL/ POLICE FEDERAL POLICE CHILD
LAKE SPECIAL MOTEL FORFEITED SEIZED SEIZED SAFETY
PARKS EVENTS TAXES FUND FUND FUND FUND
REVENUES
Licenses and permits 501,388$ -$ -$ -$ -$ -$ -$
Fines and forfeitures - - - - - 24,252 -
Charges for services - - - - - - -
Hotel / motel taxes - - 1,937,274 - - - -
Gifts and contributions 101,806 - - - - - -
Grants - - - - - - 51,981
Investment income - - - 84 - - -
Miscellaneous 4,602 62,177 1,688 19,141 - - -
Total revenues 607,796 62,177 1,938,962 19,225 - 24,252 51,981
EXPENDITURES
Current:
General government - - - - - - -
Culture and recreation 159,713 632,146 1,347,572 - - - -
Public works - - - - - - -
Public safety - - - 71,410 - 3,045 -
Capital outlay 32,485 - 6,996 8,087 - - -
Total expenditures 192,198 632,146 1,354,568 79,497 - 3,045 -
Excess (deficiency) of revenues
over (under) expenditures 415,598 (569,969) 584,394 (60,272) - 21,207 51,981
OTHER FINANCING SOURCES (USES)
Transfers from other funds - 545,000 115,000 50,792 - - -
Transfers to other funds (35,000)- (200,000) - - (50,792) (10,000)
Total other financing sources (uses)(35,000) 545,000 (85,000) 50,792 - (50,792) (10,000)
NET CHANGE IN FUND BALANCES (DEFICIT)380,598 (24,969) 499,394 (9,480) - (29,585) 41,981
FUND BALANCES, BEGINNING OF YEAR 1,277,449 3,383 381,393 75,279 12,935 35,546 93,798
FUND BALANCES (DEFICIT), END OF YEAR 1,658,047$ (21,586)$ 880,787$ 65,799$ 12,935$ 5,961$ 135,779$
SPECIAL REVENUE
146
EXHIBIT C-2
103
TOTAL
STORM KEEP THE TRINITY NON-MAJOR
WATER COURT COURT COLONY CITIZENS PID NORTH JUVENILE GOVERNMENTAL
UTILITY SECURITY TECHNOLOGY BEAUTIFUL DONATIONS No. 1 MEDICAL CASE FUNDS
1,256,518 -$ -$ -$ -$ -$ -$ -$ 1,757,906$
- 28,970 23,910 - - - - - 77,132
- - - - - 902,327 - 56,667 958,994
- - - - - - - - 1,937,274
- - - - 257 - - - 102,063
- - - - - - - - 51,981
- - - - - 16,553 - - 16,637
- - - - - - 56,530 - 144,138
1,256,518 28,970 23,910 - 257 918,880 56,530 56,667 5,046,125
- - - - - 1,561,468 31,055 6,954 1,599,477
- - - - - - - - 2,139,431
777,305 - - 634 - - - - 777,939
- 600 13,497 - - - - 953 89,505
115,350 10,761 - - - - - - 173,679
892,655 11,361 13,497 634 - 1,561,468 31,055 7,907 4,780,031
363,863 17,609 10,413 (634) 257 (642,588) 25,475 48,760 266,094
- - - 10,000 - - - - 720,792
(150,000) - - - - - - - (445,792)
(150,000) - - 10,000 - - - - 275,000
213,863 17,609 10,413 9,366 257 (642,588) 25,475 48,760 541,094
953,418 284,711 621 1,835 10,138 928,877 132,115 106,484 4,297,982
1,167,281$ 302,320$ 11,034$ 11,201$ 10,395$ 286,289$ 157,590$ 155,244$ 4,839,076$
SPECIAL REVENUE
147
EXHIBIT C-3
CITY OF THE COLONY
LAKE PARKS SPECIAL REVENUE FUND
BUDGETARY COMPARISON SCHEDULE
FOR THE YEAR ENDED SEPTEMBER 30, 2022
104
VARIANCE WITH
FINAL BUDGET
POSITIVE
ORIGINAL FINAL ACTUAL (NEGATIVE)
REVENUES
Licenses and permits 331,100$ 331,100$ 501,388$ 170,288$
Development contributions 117,000 117,000 101,806 (15,194)
Miscellaneous - - 4,602 4,602
Total revenues 448,100 448,100 607,796 159,696
EXPENDITURES
Culture and recreation 168,648 313,648 159,713 153,935
Capital outlay 496,804 496,804 32,485 464,319
Total expenditures 665,452 810,452 192,198 618,254
Excess (deficiency) of revenues
over (under) expenditures (217,352) (362,352) 415,598 777,950
OTHER FINANCING USES
Transfers to other funds (35,000) (35,000) (35,000) -
Total other financing uses (35,000) (35,000) (35,000) -
NET CHANGE IN FUND BALANCES (252,352) (397,352) 380,598 777,950
FUND BALANCE, BEGINNING OF YEAR 1,277,449 1,277,449 1,277,449 -
FUND BALANCE, END OF YEAR 1,025,097$ 880,097$ 1,658,047$ 777,950$
BUDGETED AMOUNTS
148
EXHIBIT C-4
CITY OF THE COLONY
SPECIAL EVENTS SPECIAL REVENUE FUND
BUDGETARY COMPARISON SCHEDULE
FOR THE YEAR ENDED SEPTEMBER 30, 2022
105
VARIANCE WITH
FINAL BUDGET
POSITIVE
ORIGINAL FINAL ACTUAL (NEGATIVE)
REVENUES
Miscellaneous 50,000$ 50,000$ 62,177$ 12,177$
Total revenues 62,000 62,000 62,177 177
EXPENDITURES
Culture and recreation 605,801 621,473 632,146 (10,673)
Total expenditures 605,801 621,473 632,146 (10,673)
Deficiency of revenues
under expenditures (543,801) (559,473) (569,969) (10,496)
OTHER FINANING SOURCES
Transfers from other funds 545,000 545,000 545,000 -
Total other financing sources 545,000 545,000 545,000 -
NET CHANGE IN FUND BALANCES 1,199 (14,473) (24,969) (10,496)
FUND BALANCE, BEGINNING OF YEAR 3,383 3,383 3,383 -
FUND BALANCE, END OF YEAR 4,582$ (11,090)$ (21,586)$ (10,496)$
BUDGETED AMOUNTS
149
EXHIBIT C-5
CITY OF THE COLONY
HOTEL/MOTEL TAXES SPECIAL REVENUE FUND
BUDGETARY COMPARISON SCHEDULE
FOR THE YEAR ENDED SEPTEMBER 30, 2022
106
VARIANCE WITH
FINAL BUDGET
POSITIVE
ORIGINAL FINAL ACTUAL (NEGATIVE)
REVENUES
Hotel / motel taxes 900,000$ 900,000$ 1,937,274$ 1,037,274$
Miscellaneous - - 1,688 1,688
Total revenues 900,000 900,000 1,938,962 1,038,962
EXPENDITURES
Culture and recreation 1,419,209 1,489,087 1,347,572 141,515
Capital outlay - 10,000 6,996 3,004
Total expenditures 1,419,209 1,499,087 1,354,568 144,519
Excess (deficiency) of revenues
over (under) expenditures (519,209) (599,087) 584,394 1,183,481
OTHER FINANCING SOURCES (USES)
Transfers from other funds 115,000 115,000 115,000 -
Transfers to other funds (200,000) (200,000) (200,000) -
Total other financing sources (uses)(85,000) (85,000) (85,000) -
NET CHANGE IN FUND BALANCES (604,209) (684,087) 499,394 1,183,481
FUND BALANCE, BEGINNING OF YEAR 381,393 381,393 381,393 -
FUND BALANCE, END OF YEAR (222,816)$ (302,694)$ 880,787$ 1,183,481$
BUDGETED AMOUNTS
150
EXHIBIT C-6
CITY OF THE COLONY
CHILD SAFETY SPECIAL REVENUE FUND
BUDGETARY COMPARISON SCHEDULE
FOR THE YEAR ENDED SEPTEMBER 30, 2022
107
VARIANCE WITH
FINAL BUDGET
POSITIVE
ORIGINAL FINAL ACTUAL (NEGATIVE)
REVENUES
Grants 47,500$ 47,500$ 51,981$ 4,481$
Total revenues 47,500 47,500 51,981 4,481
EXPENDITURES
Public safety 39,525 39,525 - 39,525
Total expenditures 39,525 39,525 - 39,525
Excess of revenues
over expenditures 7,975 7,975 51,981 44,006
OTHER FINANCING USES
Transfers to other funds (10,000) (10,000) (10,000) -
Total other financing uses (10,000) (10,000) (10,000) -
NET CHANGE IN FUND BALANCES (2,025) (2,025) 41,981 44,006
FUND BALANCE, BEGINNING OF YEAR 93,798 93,798 93,798 -
FUND BALANCE, END OF YEAR 91,773$ 91,773$ 135,779$ 44,006$
BUDGETED AMOUNTS
151
EXHIBIT C-7
CITY OF THE COLONY
STORM WATER UTILITY SPECIAL REVENUE FUND
BUDGETARY COMPARISON SCHEDULE
FOR THE YEAR ENDED SEPTEMBER 30, 2022
108
VARIANCE WITH
FINAL BUDGET
POSITIVE
ORIGINAL FINAL ACTUAL (NEGATIVE)
REVENUES
Licenses and permits 1,000,000$ 1,000,000$ 1,256,518$ 256,518$
Total revenues 1,000,000 1,000,000 1,256,518 256,518
EXPENDITURES
Public works 661,756 661,756 777,305 (115,549)
Capital outlay 290,128 290,128 115,350 174,778
Total expenditures 951,884 951,884 892,655 59,229
Excess of revenues
over expenditures 48,116 48,116 363,863 315,747
OTHER FINANCING USES
Transfers to other funds (150,000) (150,000) (150,000) -
Total other financing uses (150,000) (150,000) (150,000) -
NET CHANGE IN FUND BALANCES (101,884) (101,884) 213,863 315,747
FUND BALANCE, BEGINNING OF YEAR 953,418 953,418 953,418 -
FUND BALANCE, END OF YEAR 851,534$ 851,534$ 1,167,281$ 315,747$
BUDGETED AMOUNTS
152
109
DISCRETELY PRESENTED COMPONENT UNITS
The Colony Economic Development Corporation (TCEDC) – TCEDC is a legally separate entity from
the City and was organized exclusively for the public purposes of the promotion and development of new
and expanded business enterprises to provide and encourage employment in the furtherance of public
welfare.
The Colony Community Development Corporation (TCCDC) – TCCDC is a legally separate entity
from the City and was organized for the purpose of the promotion of economic development by
developing, implementing, and financing projects under the Development Corporation Act of 1979.
The Colony Local Development Corporation (TCLDC) – The TCLDC is a legally separate entity from
the City and was organized exclusively for the purpose of serving as the primary governing body for the
funding of the Tax Increment Reinvestment Zone Number One public infrastructure between the City and
NFM Services.
153
EXHIBIT F-1
CITY OF THE COLONY, TEXAS
THE COLONY ECONOMIC DEVELOPMENT CORPORATION
BALANCE SHEET
SEPTEMBER 30, 2022
110
ASSETS
Cash and cash equivalents 15,426,084$
Sales tax receivable 2,117,849
Restricted assets:
Cash and cash equivalents 10,156,785
Total assets 27,700,718$
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable 1,471,424$
Total liabilities 1,471,424
FUND BALANCES
Restricted for:
Construction 2,000,993
Unassigned 24,228,301
Total fund balance 26,229,294
Total liabilities and fund balances 27,700,718$
154
EXHIBIT F-2
CITY OF THE COLONY, TEXAS
THE COLONY ECONOMIC DEVELOPMENT CORPORATION
RECONCILIATION OF THE GOVERNMENTAL FUNDS
BALANCE SHEET TO THE STATEMENT OF NET POSITION
SEPTEMBER 30, 2022
111
Total fund balances - governmental funds 26,229,294$
Amounts reported for governmental activities in the statement of net position
are different because:
Capital assets (net of accumulated depreciation) used in governmental
activities are not current financial resources and therefore are not
reported in the governmental funds balance sheet.6,355,178
Interest payable on long term debt does not require current financial resources,
therefore, interest payable is not reported as a liability in the governmental
funds balance sheet.(1,030,558)
Long-term liabilities, including bonds payable, are not due and payable in the current period
and, therefore, are not reported in the fund financial statements. Long-term liabilities
at year-end consist of:
Bonds payable (33,095,000)
Compensated absences (99,430)
Discount on issuance of debt 1,407,972
Net position (deficit) of governmental activities (232,544)$
155
EXHIBIT F-3
CITY OF THE COLONY, TEXAS
THE COLONY ECONOMIC DEVELOPMENT CORPORATION
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
FOR THE YEAR ENDED SEPTEMBER 30, 2022
112
REVENUES
Municipal sales tax 9,775,815$
Investment income 96,670
Miscellaneous 2,163
Total revenues 9,874,648
EXPENDITURES
Current:
Economic development 2,144,808
Debt service:
Principal retirement 790,000
Interest and fiscal charges 2,217,843
Total expenditures 5,152,651
Excess of revenues over expenditures 4,721,997
NET CHANGE IN FUND BALANCES 4,721,997
FUND BALANCES, BEGINNING OF YEAR 21,507,297
FUND BALANCES, END OF YEAR 26,229,294$
156
EXHIBIT F-4
CITY OF THE COLONY, TEXAS
THE COLONY ECONOMIC DEVELOPMENT CORPORATION
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2022
113
Net change in fund balances - total governmental funds 4,721,997$
Amounts reported for governmental activities in the statement of activities
are different because:
Current year amortization of discounts that does not require the use of current financial resources;
and, therefore, not reported as expenditures in governmental funds. (67,046)
Current year changes in accrued compensated absences do not require the use of current
financial resources; and, therefore, are not reported as expenditures in governmental funds. (3,854)
Current year principal payments on long-term debt are recorded as expenditures
in the fund financial statements, but are reflected as reductions of the liability
for long-term debt in the government-wide financial statements. 790,000
Current year changes in accrued interest payable do not require the use of current
financial resources; therefore, are not reported as expenditures in governmental funds. 15,750
Change in net position (deficit) of governmental activities 5,456,847$
157
EXHIBIT F-5
CITY OF THE COLONY, TEXAS
THE COLONY COMMUNITY DEVELOPMENT CORPORATION
BALANCE SHEET
SEPTEMBER 30, 2022
114
ASSETS
Cash and cash equivalents 10,359,933$
Sales tax receivable 2,117,849
Prepaid items 189
Restricted assets:
Cash and cash equivalents 10,160,038
Total assets 22,638,009$
LIABILITIES
Accounts payable 1,436,468$
Total liabilities 1,436,468
FUND BALANCE
Unassigned 21,201,541
Total fund balance 21,201,541
Total liabilities and fund balance 22,638,009$
158
EXHIBIT F-6
CITY OF THE COLONY, TEXAS
THE COLONY COMMUNITY DEVELOPMENT CORPORATION
RECONCILIATION OF THE GOVERNMENTAL FUNDS
BALANCE SHEET TO THE STATEMENT OF NET POSITION
SEPTEMBER 30, 2022
115
Total fund balances - governmental funds 21,201,541$
Amounts reported for governmental activities in the statement of net position
are different because:
Interest payable on long term debt does not require current financial resources,
therefore interest payable is not reported as a liability in the governmental
funds balance sheet. (1,008,463)
Long-term liabilities, including bonds payable, are not due and payable in the current
period and, therefore, are not reported in the fund financial statements. Long-term
liabilities at year end consist of:
Bonds payable (27,965,000)
Discount on issuance of debt 1,407,971
Net position (deficit) of governmental activities (6,363,951)$
159
EXHIBIT F-7
CITY OF THE COLONY, TEXAS
THE COLONY COMMUNITY DEVELOPMENT CORPORATION
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED SEPTEMBER 30, 2022
116
REVENUES
Municipal sales tax 9,775,815$
Investment income 74,150
Miscellaneous 1,200
Total revenues 9,851,165
EXPENDITURES
Current:
Economic development 1,009,938
Debt service:
Principal retirement 370,000
Interest and fiscal charges 2,029,875
Total expenditures 3,409,813
Excess of revenues over expenditures 6,441,352
FUND BALANCE, BEGINNING OF YEAR 14,760,189
FUND BALANCE, END OF YEAR 21,201,541$
160
EXHIBIT F-8
CITY OF THE COLONY, TEXAS
THE COLONY COMMUNITY DEVELOPMENT CORPORATION
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2022
117
Net change in fund balances - total governmental funds 6,441,352$
Amounts reported for governmental activities in the statement of activities
are different because:
Current year principal payments on long-term debt are recorded as expenditures
in the fund financial statements, but are reflected as reductions of the liability
for long-term debt in the government-wide financial statements. 370,000
Current year amortization of the costs of discounts on debt issuance
does not require the use of current financial resources; and, therefore, not reported
as expenditures in governmental funds. (67,046)
Current year changes in accrued interest payable do not require the use of current
financial resources; and, therefore, are not reported as expenditures in governmental funds. 12,950
Change in net position (deficit) of governmental activities 6,757,256$
161
EXHIBIT F-9
CITY OF THE COLONY, TEXAS
THE COLONY LOCAL DEVELOPMENT CORPORATION
BALANCE SHEET
SEPTEMBER 30, 2022
118
ASSETS
Restricted cash and cash equivalents 17,781,160$
Total assets 17,781,160$
LIABILITIES
Accounts payable and accrued expenses 10,000$
Total liabilities 10,000
FUND BALANCE
Unassigned 17,771,160
Total fund balance 17,771,160
Total liabilities and fund balance 17,781,160$
162
EXHIBIT F-10
CITY OF THE COLONY, TEXAS
THE COLONY LOCAL DEVELOPMENT CORPORATION
RECONCILITATION OF THE GOVERNMENTAL FUNDS
BALANCE SHEET TO THE STATEMENT OF NET POSITION
SEPTEMBER 30, 2022
119
Total fund balance - governmental fund 17,771,160$
Amounts reported for governmental activities in the statement of net
position are different because:
Capital assets (net of accumulated depreciation) used in governmental
activities are not current financial resources and, therefore, are not
reported in the governmental funds balance sheet. 22,321,911
Interest payable on long term debt does not require current financial resources;
therefore, interest payable is not reported as a liability in the governmental
funds balance sheet. (3,296,113)
Prepaid insurance costs associated with the issuance of bonds are recorded as expenditures
at the time of issuance in the governmental funds financial statements. In the government-
wide financial statements, these costs are recorded as an asset and amortized into
expense over the life of the debt. 3,570,776
Long-term liabilities, including bonds payable, are not due and payable in the current period
and, therefore, are not reported in the fund financial statements. Long-term liabilities
at year end consist of:
Bonds payable (138,605,000)
Deferred loss on refunding 359,636
Discount on issuance of debt 26,775
Net position (deficit) for governmental activities (97,850,855)$
163
EXHIBIT F-11
CITY OF THE COLONY, TEXAS
THE COLONY LOCAL DEVELOPMENT CORPORATION
STATEMENT OF REVENUES, EXPENDITURES AND CHANGE IN FUND BALANCES
FOR THE YEAR ENDED SEPTEMBER 30, 2022
120
REVENUES
Intergovernmental 1,867,951$
Municipal sales tax 8,898,231
Investment income 24,532
Total revenues 10,790,714
EXPENDITURES
Current:
Economic development 10,500
Debt services:
Principal retirement 2,820,000
Interest and fiscal charges 6,639,697
Total expenditures 9,470,197
Excess of revenues over expenditures 1,320,517
FUND BALANCE, BEGINNING OF YEAR 16,450,643
FUND BALANCE, END OF YEAR 17,771,160$
164
EXHIBIT F-12
CITY OF THE COLONY, TEXAS
THE COLONY LOCAL DEVELOPMENT CORPORATION
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGE IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2022
121
Net change in fund balances - Local Development Corporation 1,320,517
Amounts reported for governmental activities in the statement of activities are
different because:
Current year amortization of the costs of discounts on debt issuance
does not require the use of current financial resources; and, therefore, not reported
as expenditures in governmental funds. (2,029)
The issuance of long-term debt (e.g bonds) provides current financial resources of funds,
while the repayment of the principal of long-term consumes the current financial resources.
The amount is the net effect of these differences in the treatment of long-term debt and
related items.
Bond principal 2,820,000
Amortization of deferred loss on refunding (27,664)
Amortization of prepaid insurance on bonds (142,831)
Current year changes in accrued interest payable do not require the use of current
financial resources; and, therefore, are not reported as expenditures in governmental funds. 47,473
Change in net position (deficit) of governmental activities 4,015,466$
165
122
.
166
123
STATISTICAL SECTION
167
124
168
125
STATISTICAL SECTION
(Unaudited)
The City of the Colony’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 City’s overall financial health.
Tables
Financial Trends These Schedules contain trend information to help the reader
understand how the City's financial performance and well-being
have changed over time. 1-4
Revenue Capacity These schedules present information to help the reader assess
the City's most significant local revenue source, the property tax. 5-8
Debt Capacity These schedules present information to help the reader assess the
affordability of the City's current levels of outstanding debt
and the City's ability to issue additional debt in the future. 9-13
Demographic These schedules offer demographic and economic indicators to
and Economic help the reader understand the environment within which the
Indicators City's financial activities take place. 14-16
Operating These schedules contain service and infrastructure data to help
Information the reader understand how the information in the City's financial
report relate to the services the City provides and the activities
it performs. 17-18
169
CITY OF THE COLONY, TEXAS
NET POSITION BY COMPONENT
ACCRUAL BASIS OF ACCOUNTING
LAST TEN FISCAL YEARS (UNAUDITED)
126
2013 2014 2015 2016
Governmental activities
Net investment in capital assets 138,322,067$ 192,477,376$ 192,477,376$ 216,941,085$
Restricted for:
Debt service 491,954 1,257,148 1,257,148 1,826,579
Construction - 367,397.00 367,397 367,397
Government funded construction costs 36,282,548 578,825 578,825 791,860
Other - 1,014,418.00 1,014,418.00 1,264,226
Unrestricted 8,376,946 10,388,094 10,388,094 17,693,194
Total governmental activities net position 183,473,515$ 206,083,258$ 206,083,258$ 238,884,341$
Business-type activities
Net investment in capital assets 35,059,168$ 40,490,252$ 40,490,252$ 25,654,373$
Restricted for:
Debt service 1,630,805 - - -
Construction - 1,333,988.00 1,333,988 1,413,437
Government funded construction costs - - - -
Unrestricted 4,984,955 3,890,445 3,890,445 17,934,272
Total business-type activities net position 41,674,928$ 45,714,685$ 45,714,685$ 45,002,082$
Primary government
Net investment in capital assets 173,381,235$ 232,967,628$ 232,967,628$ 242,595,458$
Restricted for:
Debt service 2,122,759 1,257,148 1,257,148 1,826,579
Construction - 1,701,385.00 1,701,385.00 1,780,834
Governmental funded construction costs 36,282,548 578,825 578,825 791,860
Other - 1,014,418.00 1,014,418.00 1,264,226
Unrestricted 13,361,901 14,278,539 14,278,539 35,627,466
Total primary governmental net position 225,148,443$ 251,797,943$ 251,797,943$ 283,886,423$
Source: Annual Comprehensive Financial Report
Fiscal Year
170
TABLE 1
127
2017 2018 2019 2020 2021 2022
204,138,146$ 193,724,440$ 197,783,498$ 198,340,131$ 200,374,394$ 204,399,731$
1,027,528 902,127 863,999 1,802,592 3,183,352 5,124,388
367,397 - - - - -
1,729,804 4,716,830 4,538,583 6,866,640 4,130,506 242,568
1,684,065 2,313,497 3,694,856 3,659,079 5,405,009 9,302,645
8,666,844 8,704,028 5,535,911 8,170,872 10,102,289 15,263,719
217,613,784$ 210,360,922$ 212,416,847$ 218,839,314$ 223,195,550$ 234,333,051$
97,282,865$ 103,990,659$ 103,881,697$ 105,088,143$ 105,104,266$ 105,648,298$
- - - - - -
2,323,551 - - - - -
- 2,482,944 2,039,020 1,704,315 1,074,088 1,358,869
2,128,657 4,887,549 7,666,343 6,525,997 6,542,891 7,990,465
101,735,073$ 111,361,152$ 113,587,060$ 113,318,455$ 112,721,245$ 114,997,632$
301,421,011$ 297,715,099$ 301,665,195$ 303,428,274$ 305,478,660$ 310,048,029$
1,027,528 902,127 863,999 1,802,592 3,183,352 5,124,388
2,690,948 - - - - -
1,729,804 7,199,774 6,577,603 8,570,955 5,204,594 1,601,437
1,684,065 2,313,497 3,694,856 3,659,079 5,405,009 9,302,645
10,795,501 13,591,577 13,202,254 14,696,869 16,645,180 23,254,184
319,348,857$ 321,722,074$ 326,003,907$ 332,157,769$ 335,916,795$ 349,330,683$
Fiscal Year
171
CITY OF THE COLONY, TEXAS
CHANGES IN NET POSITION
ACCRUAL BASIS OF ACCOUNTING
LAST TEN FISCAL YEARS (UNAUDITED)
128
2013 2014 2015 2016
Expenses
Governmental activities:
General government 5,376,865$ 4,657,245$ 8,498,744$ 11,225,704$
Public safety 13,307,649 14,111,478 13,702,805 17,950,628
Public works 5,901,952 6,365,189 6,634,461 6,601,440
Culture and recreation 4,603,345 4,861,085 4,945,616 5,171,748
Interest on Long-term Debt 1,718,298 1,615,808 1,552,854 1,390,574
Total governmental activities expenses 30,908,109 31,610,805 35,334,480 42,340,094
Business-type activities:
Water and sewer 14,009,946 14,046,013 15,332,384 16,750,973
Total business-type activities expenses 14,009,946 14,046,013 15,332,384 16,750,973
Total primary government expenses 44,918,055$ 45,656,818$ 50,666,864$ 59,091,067$
Program Revenues
Governmental activities:
Charges for Services:
General government 1,820,291$ 817,907$ 677,339$ 3,608,782$
Public safety 1,269,844 1,909,552 1,621,361 1,546,836
Public works - 1,734,579 3,308,308.00 2,213,005
Culture and recreation 1,249,298 738,844 758,969 764,819
Operating grants and contributions 22,019,655 2,673,886 5,712,865 3,268,620
Capital grants and contributions 2,899,255 8,730,508 11,365,061 25,670,242
Total governmental activities program revenues 29,258,343 16,605,276 23,443,903 37,072,304
Business-type activities:
Charges for Services:
Water and sewer 13,579,477 14,406,435 15,210,296 15,959,047
Operating grants and contributions - 51,745 306,999.00 307,161
Capital grants and contributions 1,338,003 1,572,935 5,055,328 6,426,313
Total business-type activities program revenues 14,917,480 16,031,115 20,572,623 22,692,521
Total primary government program revenues 44,175,823$ 32,636,391$ 44,016,526$ 59,764,825$
Net (Expenses) Revenues
Governmental activities (1,649,766)$ (15,005,529)$ (11,890,577)$ (5,267,790)$
Business-type activities 907,534 1,985,102 5,240,239 5,941,548
Total primary government net expenses (742,232)$ (13,020,427)$ (6,650,338)$ 673,758$
Source: Annual Comprehensive Financial Report
Fiscal Year
172
TABLE 2
129
2017 2018 2019 2020 2021 2022
13,083,945$ 17,442,292$ 15,928,203$ 14,646,729$ 15,835,564$ 15,353,052$
19,078,137 19,917,944 24,524,067 24,600,147 25,340,611 26,743,262
33,589,099 15,129,445 9,100,156 8,179,035 10,425,482 11,016,099
5,504,249 6,011,423 6,377,301 5,979,977 7,818,786 7,391,239
1,731,842 1,729,008 2,254,447 1,717,586 1,825,404 3,087,504
72,987,272 60,230,112 58,184,174 55,123,474 61,245,847 63,591,156
19,040,918 19,670,658 20,447,636 23,452,375 27,240,190 26,625,071
19,040,918 19,670,658 20,447,636 23,452,375 27,240,190 26,625,071
92,028,190$ 79,900,770$ 78,631,810$ 78,575,849$ 88,486,037$ 90,216,227$
1,927,505$ 2,389,337$ 2,655,534$ 2,354,343$ 3,273,887$ 2,469,376$
1,643,454 1,966,757 1,906,360 1,785,388 2,062,419 2,199,583
2,292,974 2,245,868 2,045,067 1,790,935 1,558,430 2,819,164
813,238 821,582 859,582 450,878 888,746 1,097,542
2,641,513 103,553 1,846,995 2,779,572 352,792 723,463
10,303,953 10,158,807 5,869,468 5,086,196 6,233,192 4,821,561
19,622,637 17,685,904 15,183,006 14,247,312 14,369,466 14,130,689
17,724,046 20,009,706 18,885,913 20,656,614 22,386,290 25,610,329
306,545 - - - - -
53,449,568 3,622,560 2,663,115 2,283,690 3,836,581 2,929,119
71,480,159 23,632,266 21,549,028 22,940,304 26,222,871 28,539,448
91,102,796$ 41,318,170$ 36,732,034$ 37,187,616$ 40,592,337$ 42,670,137$
(53,364,635)$ (42,544,208)$ (43,001,168)$ (40,876,162)$ (46,876,381)$ (49,460,467)$
52,439,241 3,961,608 1,101,392 (512,071) (1,017,319) 1,914,377
(925,394)$ (38,582,600)$ (41,899,776)$ (41,388,233)$ (47,893,700)$ (47,546,090)$
Fiscal Year
173
CITY OF THE COLONY, TEXAS
CHANGES IN NET POSITION
ACCRUAL BASIS OF ACCOUNTING
LAST TEN FISCAL YEARS (UNAUDITED)
130
2013 2014 2015 2016
General Revenues
and Other Changes in Net Position
Governmental activities:
Taxes:
Property taxes 14,926,095$ 15,561,110$ 17,277,344$ 21,204,646$
Sales taxes 4,098,458 4,452,674 5,294,228 5,736,997
Franchise taxes 2,205,461 2,415,524 2,672,475 2,527,792
Hotel motel taxes 425,177 473,743 525,449 668,011
Penalties and interest 98,147 58,769 130,513 294,798
Interest on investments 43,567 19,516 19,660 102,126
Miscellaneous 501,649 706,755 763,871 792,311
Transfers 1,282,318 652,385 2,004,806 6,742,192
Total governmental activities 23,580,872 24,340,476 28,688,346 38,068,873
Business-type activities:
Interest on investments 8,093 3,056 14,125 88,041
Miscellaneous 441,338 - - -
Transfers (1,282,318) (652,385) (2,004,806) (6,742,192)
Total business-type activities (832,887) (649,329) (1,990,681) (6,654,151)
Total primary government 22,747,985 23,691,147 26,697,665 31,414,722
Change in Net Position
Governmental activities 8,575,343 12,449,899 23,420,556 32,801,083
Business-type activities 1,152,215 4,590,910 3,950,867 (712,603)
Total primary government 9,727,558$ 17,040,809$ 27,371,423$ 32,088,480$
Source: Annual Comprehensive Financial Report
Note: Significant decrease in public works expense in FY2018 due to prior year $26 million contribution of capital
assets to Texas Department of Transportation.
Fiscal Year
174
TABLE 2 – CONT’D
131
2017 2018 2019 2020 2021 2022
24,719,070$ 27,584,526$ 31,092,818$ 34,456,249$ 36,510,300$ 38,701,240$
6,357,581 7,100,104 8,090,511 7,442,947 9,721,676 11,426,569
2,609,706 2,705,950 2,737,190 2,765,433 2,517,283 2,873,419
1,275,280 1,525,722 1,532,041 849,664 1,044,987 1,937,274
125,543 133,895 108,472 114,898 96,423 106,926
256,672 729,690 1,075,171 429,498 26,889 456,215
838,429 1,521,033 895,376 1,236,307 1,715,059 5,196,325
(4,088,203) (5,397,569) (474,486) 3,633 (400,000) (100,000)
32,094,078 35,903,351 45,057,093 47,298,629 51,232,617 60,597,968
205,547 356,102 650,030 247,099 20,069 262,050
- - - - - -
4,088,203 5,397,569 474,486 (3,633) 400,000 100,000
4,293,750 5,753,671 1,124,516 243,466 420,069 362,050
36,387,828 41,657,022 46,181,609 47,542,095 51,652,686 60,960,018
(10,450,130) (7,097,817) (1,109,507) 6,422,467 12,583,862 11,137,501
8,255,358 6,855,063 107,197 (268,605) 2,605,897 2,276,427
(2,194,772)$ (242,754)$ (1,002,310)$ 6,153,862$ 15,189,759$ 13,413,928$
Fiscal Year
175
CITY OF THE COLONY, TEXAS
FUND BALANCES, GOVERNMENTAL FUNDS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
LAST TEN FISCAL YEARS (UNAUDITED)
132
2013 2014 2015 2016
General Fund
Restricted for tourism -$ -$ -$ -$
Restricted for capital projects - 367,397 367,397 367,397
Nonspendable 99,785 87,434 109,169 284,122
Unassigned 8,307,886 10,458,525 12,622,396 13,275,540
Total general fund 8,407,671$ 10,913,356$ 13,098,962$ 13,927,059$
All Other Governmental Funds
Restricted for:
Capital Projects 38,356,081$ 12,241,468$ 3,284,839$ 790,306$
Debt Service 491,954 650,022 1,390,478 1,922,262
Other 915,493 1,014,418 801,546 1,261,149
Committed 422,302 4,208,038 5,566,517 10,688,119
Nonspendable - - - 5,565
Unassigned - - (1,230,851) -
Total all other governmental funds 40,185,830$ 18,113,946$ 9,812,529$ 14,667,401$
Source: Annual Comprehensive Financial Report
Fiscal Year
176
TABLE 3
133
2017 2018 2019 2020 2021 2022
-$ -$ -$ -$ 2,385,220$ 6,099,958
367,397 - - - - -
313,070 110,389 295,737 527,373 705,043 184,128
13,503,540 14,396,285 15,213,908 18,686,206 19,835,324 23,834,380
14,184,007$ 14,506,674$ 15,509,645$ 19,213,579$ 22,925,587$ 30,118,466$
1,729,804$ 20,717,454$ 18,082,244$ 19,229,949$ 20,344,096$ 23,279,419$
1,133,536 1,159,562 1,183,290 2,159,398 3,442,104 5,416,036
1,681,336 2,313,497 3,694,856 3,659,079 3,019,789 3,202,687
11,099,306 1,386,721 963,305 1,051,469 1,277,449 1,658,047
5,294 931 13,532 1,032 1,032 816
- - (20,716) - - (22,402)
15,649,276$ 25,578,165$ 23,916,511$ 26,100,927$ 28,084,470$ 33,534,603$
Fiscal Year
177
CITY OF THE COLONY, TEXAS
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
LAST TEN FISCAL YEARS (UNAUDITED)
134
2013 2014 2015 2016
REVENUES
Ad valorem taxes, penalties and interest 14,935,642$ 15,487,211$ 17,708,151$ 21,257,383$
Franchise taxes 2,205,461 2,415,524 2,672,475 2,527,792
Municipal sales tax 4,098,458 4,452,674 5,294,228 5,736,997
Licenses and permits 1,820,291 2,548,914 4,076,413 3,113,013
Charges for services 1,249,298 1,308,917 1,248,868 4,150,248
Fines and forfeitures 1,269,844 1,343,051 1,040,696 870,181
Grants 465,057 309,622 326,685 316,672
Gifts and contributions 2,175,919 2,700,591 5,881,783 3,252,323
Hotel / motel taxes 425,177 473,473 525,449 668,011
Capital recovery fees 21,519,655 6,712,194 1,090,071 2,518,123
Interest earned 43,567 19,516 19,660 102,126
Miscellaneous 501,649 706,755 770,156 792,311
Total revenues 50,710,018 38,478,442 40,654,635 45,305,180
EXPENDITURES
Current
General government 4,264,620 3,956,996 4,738,905 7,739,892
Public safety 12,374,865 12,797,691 13,950,864 15,162,864
Public works 2,001,302 2,181,484 3,204,557 3,480,223
Cultural and recreation 4,155,473 4,233,864 4,435,393 4,473,519
Capital Outlay 16,283,998 30,700,864 20,723,176 9,801,947
Debt Service:
Principal retirement 4,195,250 4,066,150 4,255,146 3,985,693
Interest and fiscal charges 1,550,643 1,647,599 1,638,941 1,485,036
Other debt service costs 117,838 25,169 55,015 272,250
Total expenditures 44,943,989 59,609,817 53,001,997 46,401,424
Excess (deficiency) of revenues
over (under) expenditures 5,766,029 (21,131,375) (12,347,362) (1,096,244)
OTHER FINANCING SOURCES (USES)
Issuance of debt 2,073,533 - 3,040,800 -
Issuance of refunding debt 2,795,693 - - 9,023,150
Payment of escrow for refunding debt (3,120,000) - - (9,623,402)
Premium on issuance of debt 370,942 - 250,945 637,273
Proceeds from sale of capital assets - - 935,000 -
Transfers from other funds 2,754,588 3,718,125 5,277,829 14,488,155
Transfers to other funds (1,472,270) (2,153,219) (3,273,023) (7,745,963)
Total other financing sources (uses)3,402,486 1,564,906 6,231,551 6,779,213
NET CHANGE IN FUND BALANCES 9,168,515$ (19,566,469)$ (6,115,811)$ 5,682,969$
Debt service as a percentage
of noncapital expenditures 20.6%19.8%17.8%15.6%
Source: Annual Comprehensive Financial Report
Fiscal Year
178
TABLE 4
135
2017 2018 2019 2020 2021 2022
24,665,737$ 28,073,387$ 31,208,682$ 34,517,810$ 36,550,929$ 38,792,035$
2,609,706 2,705,950 2,737,190 2,765,433 2,517,283 2,873,419
6,357,581 7,100,104 8,090,511 7,442,947 9,721,676 11,426,569
3,150,756 3,183,516 3,328,364 3,203,525 3,259,282 4,515,248
2,672,368 3,245,584 3,267,327 2,478,974 3,687,233 2,900,182
854,047 984,744 891,132 704,360 836,303 1,164,987
412,631 102,554 339,562 2,779,166 352,504 458,246
2,445,113 4,712,701 3,686,808 3,889,559 1,242,904 1,618,088
1,275,280 1,525,722 1,532,041 849,664 1,044,987 1,937,274
1,495,213 905,300 856,880 - - 5,906
256,672 729,690 1,075,171 429,498 26,889 456,215
838,429 1,521,033 2,982,496 1,236,607 1,715,059 5,196,325
47,033,533 54,790,285 59,996,164 60,297,543 60,955,049 71,344,494
9,005,102 12,787,913 12,251,044 10,433,755 11,611,036 11,204,338
16,904,990 18,538,271 22,225,377 22,666,732 24,497,318 26,857,472
4,119,371 3,955,801 5,312,936 4,599,940 6,243,114 7,408,957
4,803,444 5,370,608 5,621,488 5,105,872 7,035,533 6,763,364
12,722,830 8,985,109 19,677,151 7,750,112 6,059,106 12,467,022
3,945,295 4,485,630 6,785,263 5,675,101 5,377,101 5,622,134
1,885,328 2,044,983 2,355,272 1,993,814 2,259,386 2,244,482
269,752 194,643 148,434 186,184 147,333 246,198
53,656,112 56,362,958 74,376,965 58,411,510 63,229,927 72,813,967
(6,622,579) (1,572,673) (14,380,801) 1,886,033 (2,274,878) (1,469,473)
9,204,000 12,726,000 13,242,170 9,652,460 7,587,000 13,394,495
- - - 1,708,838 - -
- - - (7,362,614) - -
- 533,188 954,434 - 783,429 817,990
731,402 - - - - -
3,332,936 13,769,908 890,075 3,172,092 797,271 832,584
(5,406,936) (15,204,867) (1,364,561) (3,168,459) (1,197,271) (932,584)
7,861,402 11,824,229 13,722,118 4,002,317 7,970,429 14,112,485
1,238,823$ 10,251,556$ (658,683)$ 5,888,350$ 5,695,551$ 12,643,012$
14.0%13.7%16.7%15.1%13.2%13.0%
Fiscal Year
179
TABLE 5
CITY OF THE COLONY, TEXAS
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS (UNAUDITIED)
136
Assessed
Lots, Land Less: Total Taxable Total Estimated Value
b as a
Fiscal Residential Commercial and Farm Tax Exempt Assessed Direct Tax Actual Taxable Percentage of
Year Property Property Property Property Value
a Rate Value Actual Value
2013 1,570,595,410$ 725,097,869$ 119,916,725$ 235,621,588$ 2,179,988,416$ 0.68000$ 2,179,988,416$ 100.00%
2014 1,639,008,480 850,183,936 97,622,211 279,763,849 2,307,050,778 0.67750$ 2,307,050,778 100.00%
2015 1,825,181,743 1,096,166,239 99,116,629 395,343,379 2,625,121,232 0.67250$ 2,625,121,232 100.00%
2016 2,049,580,033 1,366,491,362 80,496,674 396,069,625 3,100,498,444 0.67000$ 3,100,498,444 100.00%
2017 2,402,844,301 1,657,374,018 79,968,769 522,157,525 3,618,029,563 0.66750$ 3,618,029,563 100.00%
2018 2,759,088,028 1,754,755,888 73,977,449 513,136,124 4,074,685,241 0.66500$ 4,074,685,241 100.00%
2019 3,163,815,052 1,818,858,009 67,568,663 524,193,007 4,526,048,717 0.66250$ 4,526,048,717 100.00%
2020 3,457,125,117 2,203,156,158 57,600,863 550,243,309 5,167,638,829 0.66000$ 5,167,638,829 100.00%
2021 3,701,008,231 2,496,989,390 57,945,301 530,447,361 5,725,495,561 0.65000$ 5,725,495,561 100.00%
2022 4,085,351,290 2,445,254,616 61,456,182 624,848,874 5,967,213,214 0.65000$ 5,967,213,214 100.00%
Source: City of The Colony Budget Document
Denton Central Appraisal District
Note: The County assesses property at 100% of its market value. Tax rates are per $100 of assessed value.
a Includes adjustments to certified rolls.
b Includes tax exempt property.
180
TABLE 6
CITY OF THE COLONY, TEXAS
DIRECT AND OVERLAPPING PROPERTY TAX RATES
(PER $100 OF ASSESSED VALUE)
LAST TEN FISCAL YEARS (UNAUDITED)
137
General Lewisville
Operating/Obligation Independent
Fiscal General Debt Total School Denton
Year Rate Service Direct District County
2013 0.46026 0.21974 0.68000 1.453 0.28287
2014 0.45902 0.21848 0.67750 1.477 0.28491
2015 0.47634 0.19616 0.67250 1.477 0.27220
2016 0.51036 0.15964 0.67000 1.420 0.26200
2017 0.56420 0.10330 0.66750 1.420 0.24841
2018 0.51500 0.15000 0.66500 1.408 0.23781
2019 0.50250 0.16000 0.66250 1.338 0.22557
2020 0.49550 0.16450 0.66000 1.347 0.22499
2021 0.49500 0.16000 0.65500 1.309 0.23309
2022 0.49000 0.16000 0.65000 1.237 0.21754
Source: Lewisville ISD and Denton County.
181
CITY OF THE COLONY, TEXAS
PRINCIPAL TAX PAYERS
CURRENT YEAR AND NINE YEARS AGO (UNAUDITED)
138
Percentage
Taxable of Total City
Assessed Taxable Assessed
Taxpayer Value Rank Value
a
LMG Ventures LLC $217,018,695 1 3.64%
TXFM Inc 110,000,000 2 1.84%
Hudson MF LLC 89,221,980 3 1.50%
Residences of Lake District No. I LTD 86,903,590 4 1.46%
Austin Ranch Phase VI Investors LLC 84,000,001 5 1.41%
AR No. 5 LLC 76,147,893 6 1.28%
AR Phase 1 LLC 67,718,052 7 1.13%
The Residences of Austin Ranch No 4 M LLC 65,000,000 8 1.09%
AR Phase 2 LLC 61,105,591 9 1.02%
TXFM Inc 59,930,672 10 1.00%
AR No. 5, LLC --
Residences of Austin Ranch #4 LTD --
Residences of Austin Ranch #2 --
Residences of Austin Ranch #1 --
Residences of Austin Ranch 1-4 LTD --
Estancia at Morningstar II LP --
Sonoma Grande at the Legends LP --
Oly-Ida Bristol Oaks LP --
Residences of Austin Ranch No 6 LTD --
Wal-Mart Real Est Bus Tr --
$917,046,474 15.37%
Source: City of The Colony Budget Document and the Denton Central Appraisal District.
Note: a Taxpayers are assessed on January 1, 2021 (2021 tax year) for the 2022 fiscal year.
2022
182
TABLE 7
139
Percentage
Taxable of Total City
Assessed Taxable Assessed
Value Rank Value
a
$45,920,104 1 2.11%
40,250,000 2 1.85%
36,900,000 3 1.69%
38,127,778 4 1.75%
32,417,927 5 1.49%
23,000,000 6 1.06%
22,539,804 7 1.03%
17,837,000 8 0.82%
15,499,100 9 0.71%
15,100,000 10 0.69%
$287,591,713 13.19%
2013
183
TABLE 8
CITY OF THE COLONY, TEXAS
AD VALOREM TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS (UNAUDITED)
140
Taxes Levied Delinquent
Fiscal for the Fiscal Percentage Tax Percentage
Year Year Amount of Levy Collections Amount of Levy
2013 14,857,405$ 14,770,162$ 99.41%36,042$ 14,806,204$ 99.66%
2014 15,754,513 15,648,851 99.33% 48,993 15,697,844 99.64%
2015 17,809,441 17,649,319 99.10% 88,356 17,737,675 99.60%
2016 21,051,346 20,697,081 98.32% 293,538 20,990,619 99.71%
2017 24,599,951 24,136,260 98.12% 379,006 24,515,266 99.66%
2018 28,111,210 27,611,357 98.22% 340,693 27,952,050 99.43%
2019 31,414,540 30,872,909 98.28% 122,502 30,995,410 98.67%
2020 34,891,826 34,299,463 98.30% 170,693 34,470,156 98.79%
2021 36,720,735 36,419,012 99.18% 21,602 36,440,614 99.24%
2022 39,049,061 38,680,354 99.06% (16,525) 38,663,828 99.01%
Source: Denton County Tax Assessor and Collector
Note: a Taxpayers are assessed on January 1, 2021 (2021 tax year) for the 2022 fiscal year.
Year of the Levy
Collected within the Fiscal
Total Collections
184
TABLE 9
CITY OF THE COLONY, TEXAS
RATIO OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS (UNAUDITED)
141
Water and
General Sewer Percentage
Fiscal Obligation Certificates Other Premiums/Revenue Other Premiums/Total Primary of Personal Per
Year Bonds of Obligation Obligations Discounts Bonds Obligations Discounts Government Income
a Capitaa
2013 23,778,250$ 18,900,000$ - 1,832,546$ 990,000$ 39,830,699$ 2,356,256$ 87,687,751$ 5.31%1,896$
2014 21,140,410 18,023,500 - 4,920,460 - 36,341,435 2,766,448 83,192,253 5.04% 1,849
2015 18,087,560 19,947,850 849,154.00 1,847,216 - 52,177,845 4,012,577 96,922,202 5.88% 2,154
2016 19,344,210 14,765,000 767,611.00 2,106,044 - 59,333,395 4,130,875 100,447,135 6.09% 2,271
2017 16,580,250 22,872,150 683,127 2,592,781 - 63,537,195 4,434,849 110,700,352 6.93% 2,621
2018 15,711,300 37,356,650 595,597 3,260,811 - 56,917,050 3,724,154 117,565,562 7.23% 2,793
2019 11,518,300 46,861,850 1,740,304 3,808,516 - 59,489,850 3,889,886 127,308,706 7.21% 2,854
2020 12,988,300 39,038,100 1,227,460 5,449,889 - 66,366,846 5,398,212 130,468,807 7.39% 2,925
2021 16,406,504 47,832,600 698,539 4,917,141 - 67,209,796 4,878,969 141,943,549 5.67% 2,568
2022 10,288,768 55,142,250 1,526,949 6,025,409 - 62,133,982 4,895,372 140,012,730 6.14% 3,032
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
aSee Table 14 for personal income and population data.
Governmental Activities Business-Type Activities
185
TABLE 10
CITY OF THE COLONY, TEXAS
RATIO OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS (UNAUDITED)
142
Percentage
of Actual
General Less:Taxable
Fiscal Obligation Certificates of Other Premium/Debt Value of Per
Year Bonds Obligation Obligations Discount Service Total Property
a Capitab
2013 23,778,250$ 21,256,051$ -$ 1,832,546$ 2,122,759$ 44,744,088 2.05%967$
2014 21,585,733 19,320,803 - 4,920,460 1,257,148 44,569,848 1.93% 990
2015 18,087,560 19,947,850 - 1,847,216 1,257,148 38,625,478 1.50% 877
2016 19,344,210 14,765,000 - 2,106,044 1,826,579 34,388,675 1.13% 795
2017 16,580,250 22,872,150 - 2,592,781 1,027,528 41,017,653 1.15% 988
2018 15,711,300 37,356,650 - 3,260,811 902,127 55,426,634 1.37% 1,331
2019 11,518,300 46,861,850 - 3,808,516 863,999 61,324,667 1.39% 1,414
2020 15,406,504 40,245,600 - 4,463,515 2,159,398 57,956,221 1.15% 1,327
2021 12,823,723 45,567,200 - 4,695,639 3,183,352 59,903,210 1.12% 1,168
2022 10,288,768 55,142,250 - 6,025,409 5,124,388 66,332,039 1.11% 1,437
Note: Details regarding the City's outstanding debt can be found in the notes
to the financial statements.
aSee Table 5 for property value data.
bSee Table 14 for population data.
Governmental Activities
186
TABLE 11
CITY OF THE COLONY, TEXAS
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS (UNAUDITED)
143
2013 2014 2015 2016 2017 2018 2019 2020 2021 2021
Tax Rate Limit $2.50 $2.50 $2.50 $2.50 $2.50 $2.50 $2.50 $2.50 $2.50 $2.50
Current Tax Rate 0.680 0.678 0.673 0.670 0.668 0.665 0.663 0.6600 0.6550 0.6500
Available Tax Rate $1.82 $1.82 $1.83 $1.83 $1.83 $1.84 $1.84 $1.84 $1.84 $1.85
Note: The City Charter of the City of The Colony, Texas does not provide for a debt limit. Under provisions of
state law, the maximum tax rate is limited to $2.50 per $100 assessed valuation. No direct bond debt
limitation is imposed on the City under current state law or the City's Charter.
Fiscal Year
187
TABLE 12
CITY OF THE COLONY, TEXAS
DIRECT AND OVERLAPPING GOVERNMENTAL
ACTIVITIES DEBT
SEPTEMBER 30, 2022 (UNAUDITED)
144
The Colony
Estimated Share of
Gross Bonded Percentage Overlapping
Governmental Unit Debt Applicable
a Debt
Lewisville I.S.D.$1,204,815,000 11.94%143,815,888$
Little Elm I.S.D.332,052,795 6.78%22,510,408
Denton County 367,805,446 4.62%16,985,236
1,904,673,241 183,311,532
City of The Colony (direct debt)72,983,376 100.00%72,983,376
Total direct and overlapping debt 1,977,656,617$ 256,294,908$
Source: Assessed value data used to estimate applicable percentages provided by
Denton Central Appraisal District. Debt outstanding data provided by each
governmental unit.
a The percentage of overlapping debt applicable is estimated using taxable
assessed property values. Applicable percentages were estimated by
determining the portion of another governmental unit's taxable assessed value
that is within the city's boundaries and dividing it by each unit's total taxable
assessed value.
188
TABLE 13
CITY OF THE COLONY, TEXAS
PLEDGED-REVENUE COVERAGE
LAST TEN FISCAL YEARS (UNAUDITED)
145
Less:
Fiscal Total Operating Net Available Annual Times
Year Revenues
a Expensesb Revenue Requirement
c Coverage
2013 14,800,804$ 9,425,182$ 5,375,622$ 4,588,214$ 1.17
2014 15,013,195 9,871,033 5,142,162 1,795,023 2.86
2015 16,676,674 10,358,961 6,317,713 1,865,816 3.39
2016 16,354,249 11,636,866 4,717,383 2,840,353 1.66
2017 18,236,138 12,543,069 5,693,069 3,263,180 1.74
2018 20,365,808 12,730,553 7,635,255 3,088,754 2.47
2019 19,535,943 13,386,788 6,149,155 2,158,400 2.85
2020 20,903,713 15,514,368 5,389,345 2,159,669 2.50
2021 22,406,359 19,219,467 3,186,892 4,377,433 0.73
2022 25,872,379 18,706,641 7,165,738 4,414,115 1.62
Note: a Includes operating and non-operating revenues.
b Includes operating expenses minus depreciation.
c Includes Principal and Interest.
Water and Sewer System Revenue Bonds
189
TABLE 14
CITY OF THE COLONY, TEXAS
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN CALENDAR YEARS (UNAUDITED)
146
Per Capita Median
Estimated Personal Personal Median Household School Unemployment
Year Population
a Income Income
b Ageb Incomeb Enrollmentc Rated
2013 46,248$ 1,639,954,080$ 35,460$ 30 62,738$ 6,688 7.0%
2014 45,000 1,627,605,000 36,169 33 73,842 6,714 5.5%
2015 45,000 1,652,040,000 36,712 35 74,162 6,739 3.2%
2016 44,228 1,648,067,964 37,263 35.5 93,076 6,718 3.5%
2017 42,228 1,597,147,416 37,822 35.5 103,677 6,656 3.4%
2018 42,228 1,625,347,440 38,616 34.9 103,677 6,451 3.3%
2019 44,610 1,766,065,290 39,589 35.5 107,620 6,250 3.1%
2020 44,610 1,766,065,290 39,589 35.5 107,620 6,031 3.3%
2021 44,534 2,015,475,238 45,257 35.7 87,748 5,712 3.9%
2022 46,176 2,280,032,352 49,377 34.9 110,760 6,755 3.1%
Sources: a Estimated Population - City of The Colony
b Per Capital Income, Median Age & Median Household Income - City
of The Colony Economic Development Corporation
c School enrollment - Texas Education Agency
d Unemployment - Texas Workforce Commission
Note: Personal income is calculated by multiplying estimated population by per
capita personal income.
190
TABLE 15
CITY OF THE COLONY, TEXAS
PRINCIPAL EMPLOYERS
CURRENT AND NINE YEARS AGO (UNAUDITED)
147
Percentage of Percentage of
Total City Total City
Employer Employees Rank Employment Employees Rank Employment
Nebraska Furniture Mart 1,750 1 6.87%0.00%
Lewisville ISD 687 2 2.70%722 1 3.32%
Scheels 480 3 1.89%0.00%
City of The Colony 412 4 1.62%325 3 1.49%
Wal-Mart 350 5 1.37%357 2 1.64%
Top Golf 220 6 0.86%150 5 0.69%
Hawaiian Falls 208 7 0.82%250 4 1.15%
Home Depot 131 8 0.51%112 6 0.51%
Andretti's 120 9 0.47%
Quest Resource Mgmt 115 10 0.45%
Texas Roadhouse 90 10 0.41%
Williams Sonoma 100 8 0.46%
Austin Ranch 93 9 0.43%
Edward Don 105 7 0.48%
4,473 17.57%2,304 10.59%
2022 2013
191
148 192
TABLE 16
CITY OF THE COLONY, TEXAS
FULL-TIME EQUIVALENT CITY GOVERNMENT
EMPLOYEES BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS (UNAUDITED)
149
Function/Program 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
General government 43 44 30 31 34 34 38 32 34 34
Public safety 140 141 142 151 165 174 187 198 204 219
Public works 37 36 42 45 47 49 59 52 53 60
Culture and recreation 38 39 38 38 35 35 37 41 41 42
Water/wastewater/
Utilities 28 28 37 37 40 40 38 47 49 51
Total 286 288 289 302 321 332 359 370 381 406
193
CITY OF THE COLONY, TEXAS
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS (UNAUDITED)
150
Function/Program 2013 2014 2015 2016
Police
Number of police officers 53 53 58 60
Number of violations (citations)11,619 12,839 5,932 13,935
Municipal Court
Number of traffic cases 11,532 12,980 6,979 5,298
Number of city ordinance cases 467 327 404 226
Fire
Number of fire fighters 50 51 58 58
Number of paramedics - - - -
Number of emergency fire responses 568 720 864 864
Number of medical emergencies 1,774 1,856 2,127 2,127
Development Services
Total number of building permitsa 2,508 3,982 272 277
Estimated valuationa $59,077,321 $198,981,751 $173,859,498 $127,234,464
Parks and Recreation
Number of acres 983 983 983 983
Number of recreation center participants 43,083 43,083 50,654 52,424
Library
Volumes in collectionb 89,385 111,077 115,256 117,538
Number of library cardholders 20,453 19,175 18,498 18,042
Water and wastewater
Number of water accounts 11,881 12,213 12,532 12,893
Average daily water consumption (millions of gallons)4.57 4.28 4.70 4.97
Average daily effluent (millions of gallons)2.34 2.89 2.82 2.74
Sources: City Departments
Notes: a Includes residential and commercial permits
b Includes books and media.
194
TABLE 17
151
Fiscal Year
2017 2018 2019 2020 2021 2022
60 6 72 74 79 79
13,986 15,232 11,718 5,742 5,080 14,105
9,480 11,264 11,264 2,888 4,519 5,174
805 860 860 132 141 272
64 78 66 64 71 72
- -16 18 14 18
860 909 894 867 1,358 1,588
2,365 2,370 2,425 2,443 2,773 3,102
2,556 4,127 4,216 2,394 3,219 3,219
$213,756,755 $271,621,030 $394,232,000 $47,041,844 $68,718,187 $68,718,187
983 983 983 983 984 984
41,595 44,789 44,789 26,843 43,350 42,850
111,150 121,926 93,919 97,716 92,918 115,560
17,291 16,725 19,101 20,534 21,770 23,127
13,285 13,626 13,864 14,161 14,335 14,660
5.10 5.47 5.46 5.46 5.13 7.87
1,070.00 1.00 1.23 1 1 2.87
195
TABLE 18
CITY OF THE COLONY, TEXAS
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS (UNAUDITED)
152
Function/Program 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Public Safety
Fire Stations 3 3 3 3 3 3 4 4 4 4
Police Stations 1 1 1 1 1 1 1 1 1 1
Culture and Recreation
Parks and Recreation
Number of parks 27 27 27 27 27 27 27 27 27 27
Number of baseball diamonds 11 11 11 11 11 11 11 15 15 15
Number of soccer/football fields 16 16 16 16 16 16 16 15 15 15
Public swimming pools 2 2 2 2 2 2 2 2 2 2
Community centers 1 1 1 1 1 1 1 1 1 1
Library 1 1 1 1 1 1 1 1 1 1
Water and wastewater
Water mains (miles)197 209 212 216 194 195 199 201 203 203
Sanitary sewer mains (miles)207 207 210 213 206 207 210 212 214 214
Fire hydrants 1,420 1,536 1,637 1,680 1,795 1,824 1,850 1,925 1,955 1,955
Sources: City Departments
Notes: a Includes residential and commercial permits
b Includes books and media.
Fiscal Year
196
Agenda Item No:5.2
CITY COUNCIL Agenda Item Report
Meeting Date: August 1, 2023
Submitted by: Tina Stewart
Submitting Department: General Admin
Item Type: Discussion
Agenda Section:
Subject:
Conduct a public hearing on short-term rentals. (Perez)
Suggested Action:
Attachments:
197
Agenda Item No:5.3
CITY COUNCIL Agenda Item Report
Meeting Date: August 1, 2023
Submitted by: Tina Stewart
Submitting Department: City Secretary
Item Type: Resolution
Agenda Section:
Subject:
Discuss and consider approving a resolution ordering the November 7, 2023 General Election for
single-member districts, specifically Place 3, Place 4, Place 5 and Place 6. (Council)
Suggested Action:
Attachments:
Res. 2023-xxx General Election Order.doc
198
CITY OF THE COLONY, TEXAS
RESOLUTION NO. 2023 - ______
A RESOLUTION OF THE CITY OF THE COLONY, TEXAS,
ORDERING AGENERAL ELECTIONOF THE QUALIFIED VOTERS
OF THE CITY TO BE HELD ON NOVEMBER 7, 2023, FOR THE
PURPOSE OF ELECTING FOUR (4) COUNCILMEMBERS FOR
SINGLE-MEMBER DISTRICTS 3, 4, 5 AND 6; PROVIDING FOR A
JOINT ELECTION BETWEEN DENTON COUNTY ELECTIONS AND
THE CITY; AND ESTABLISHING OTHER PROVISIONS RELATING
TO THE ELECTION.
WHEREAS, the terms of office of four (4) Single-Member District City Council
Members presently on the City Council set to expire on November 7, 2023; and
WHEREAS, it is hereby found and determined by the Mayor, acting in his official
capacity, and the City Council acting as the governing body of the City, that it is in the best
interest of the City and its citizens to hold an election for the purpose of electing four (4)
Council Members to the City Council Places 3, 4, 5, and 6; and
WHEREAS, Election Code, Section 3.004 authorizes such election; and
WHEREAS, Election Code, Section 41.001 specifies the date on which such elections
may be held.
NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF THE COLONY, TEXAS THAT:
Section 1. Ageneral municipal election is hereby called and ordered for the 7th day of
November, 2023, at which all qualified voters residing within the city limits of the City may
vote for the purpose of electing four(4) CouncilMembers to serve on the City Council Places
3, 4, 5 and 6.
Section 2. The said election shall be held jointly with Denton County Elections by
contract.
Section 3.The City election precincts for this election shall consist of the territory
situated within the various Denton County election precincts located within the corporate
limits of the City and bearing the following numbers, and the polling places of said election
shall be as follows:
POLLING PLACE:(To Be Determined)
The Colony, Texas
199
Section 4. That each of the polling places on Election Day, November 7, 2023, shall
be open from 7:00 a.m. to 7:00 p.m.
Section 5. That no person’s name shall be placed on the ballot as a candidate for the
position of Councilmember of the City Council until such person has filed his/her sworn
application and affidavit as provided by the laws of the State of Texas and the Charter of the
City of The Colony, Texas with the City Secretary between the dates of July 22, 2023 and
August 21, 2023.
Section 6. That voting for said election shall be by electronic voting system or paper
ballot, or by any other method as approved in the Texas Election Code, as amended, and said
ballots shall be prepared in accordance with the Texas Election Code, as amended.
Section 7. That the Denton County Elections Administratoris hereby designated as the
Early Voting Clerk.
Section 8. That early voting shall commence on Monday, October 23, 2023, and shall
close on Friday, November 3, 2023. During the lawful early voting by personal appearance
period (October 23, 2023through November 3, 2023), the City Secretary shall keep such place
for early voting open for early voting on the dates and times:
Monday, October 23 – Saturday, October 28 8 a.m. – 5 p.m.
Sunday, October 29 11 a.m. – 4 p.m.
Monday, October 30 – Friday, November 3 7 a.m. – 7 p.m.
ANY ELIGIBLE DENTON COUNTY VOTER MAY CAST THEIR VOTE DURING
EARLY VOTING AT ANY DENTON COUNTY EARLY VOTING SITE, LOCATIONS
TO BE DETERMINED AT A LATER DATE.
Section 9. That the Denton County Elections Administrator shall receive applications
for a ballot to be voted by mail until the close of business on October 27, 2023. Applications
should be mailed to: Early Voting Clerk, Denton County Elections, 701 Kimberly Drive, Suite
A101, Denton, Texas 76208.
Section 10. That election materials as enumerated in the Texas Election Code 272.005
shall be printed in both English and Spanish for use at the polling places and for early voting
for said election.
Section 11. The City Secretary is hereby authorized and directed to publish and/or
post, in the time and manner prescribed by law, all notices required in connection with the
conduct of this election. Notice of said election shall be given by publishing the notice at
least one time, not more than thirty (30) days or less than ten (10) days before the election, in
200
at least one newspaper regularly published in the City. A copy of the notice shall be filed with
the City Secretary and another copyshall be posted on a bulletin board where council agendas
are commonly posted at least twenty-one (21) days before the election. The City Secretary of
the City of The Colony, Texas shall keep a copy of the notice as published, together with the
name(s) of the newspaper(s) and date or dates of publication.
DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF THE
COLONY, TEXAS, THIS 1ST DAY OF AUGUST 2023.
______________________________
Richard Boyer, Mayor
The Colony, Texas
ATTEST:
___________________________________
Tina Stewart, TRMC, CMC, City Secretary
APPROVED AS TO FORM:
_________________________________
Jeffrey L. Moore, City Attorney
201
Agenda Item No:6.1
CITY COUNCIL Agenda Item Report
Meeting Date: August 1, 2023
Submitted by: Kimberly Thompson
Submitting Department: City Secretary
Item Type: Discussion
Agenda Section:
Subject:
A. Council shall convene into a closed executive session pursuant to Sections 551.072 and 551.087 of the
Texas Government Code to deliberate regarding purchase, exchange, lease or value of real property and
commercial or financial information the city has received from a business prospect(s), and to deliberate the
offer of a financial or other incentive to a business prospect(s).
Suggested Action:
Attachments:
202
Agenda Item No:7.1
CITY COUNCIL Agenda Item Report
Meeting Date: August 1, 2023
Submitted by: Kimberly Thompson
Submitting Department: City Secretary
Item Type: Discussion
Agenda Section:
Subject:
A. Any action as a result of executive session regarding purchase, exchange, lease or value of real property and
commercial or financial information the city has received from a business prospect(s), and the offer of a
financial or other incentive to a business prospect(s).
Suggested Action:
Attachments:
203