HomeMy WebLinkAboutCity Packets - City Council - 03/17/2026 - RegularCITY OF THE COLONY
CITY COUNCIL AGENDA
TUESDAY, MARCH 17, 2026
6:30 PM
1.0 ROUTINE ANNOUNCEMENTS, RECOGNITIONS and PROCLAMATIONS
1.1 Call to Order
1.2 Invocation
1.3 Pledge of Allegiance to the United States Flag
1.4 Salute to the Texas Flag
1.5 Items of Community Interest
1.6 Receive presentation from the Library regarding upcoming events and activities. (Charters)
2.0 CITIZEN INPUT
3.0 WORK SESSION
3.1 Receive a presentation, discuss and provide direction to staff on amending the Code of
Ordinances related to Electric Bicycles and Motor Assisted Scooters. (Foxall)
3.2 Receive presentation regarding updates on public-private partnerships. (Kopsa)
3.3 Receive a presentation from Oncor Customer Service Executive Rick Beall regarding electrical
infrastructure updates, street lighting, and Oncor projects impacting The Colony. (Beene)
3.4 Receive a presentation, discuss and provide direction to staff on amending the Code of
Ordinances related Accessory Dwelling Units. (Williams)
3.5 Council to provide direction to staff regarding future agenda items. (Council)
4.0 CONSENT AGENDA
TO ALL INTERESTED PERSONS
Notice is hereby given of a REGULAR SESSION of the CITY COUNCIL of the City of The Colony,
Texas to be held at 6:30 PM on TUESDAY, MARCH 17, 2026 at CITY HALL, 6053 MAIN
STREET, at which time the following items will be addressed:
This portion of the meeting is to allow up to five (5) minutes per speaker with a maximum of
thirty (30) minutes for items not posted on the current agenda. The council may not discuss these
items, but may respond with factual data or policy information, or place the item on a future
agenda. Those wishing to speak shall submit a Request Form to the City Secretary.
The Work Session is for the purpose of exchanging information regarding public business or
policy. No action is taken on Work Session items. Citizen input will not be heard during this
portion of the agenda.
The Consent Agenda contains items which are routine in nature and will be acted upon in one
1
4.1 Consider approving City Council Special Session meeting minutes from March 2, 2026 and
Regular Session meeting minutes from March 4, 2026. (Stewart)
4.2 Consider approving a resolution authorizing continued participation with the Atmos Cities
Steering Committee; and authorize the payment of four cents per capita to fund regulatory and
related activities. (Bredehoeft)
4.3 Consider approving a resolution authorizing the City Manager to award a concessionaire
agreement to DFW Boat Charters. (McCallum)
5.0 REGULAR AGENDA ITEMS
5.1 Receive the City's Annual Comprehensive Financial Report (ACFR) and Federal Single Audit
Report for the fiscal year ending September 30, 2025. (Bredehoeft)
5.2 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-500, Gateway Standards Waiver Procedures. (Williams)
6.0 EXECUTIVE SESSION
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).
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).
motion. Items may be removed from this agenda for separate discussion by a Council member.
EXECUTIVE SESSION NOTICE
Pursuant to the Texas Open Meeting Act, Government Code Chapter 551 one or more of the
above items may be considered in executive session closed to the public, including but not
limited to consultation with attorney pursuant to Texas Government Code Section 551.071
arising out of the attorney's ethical duty to advise the city concerning legal issues arising from
an agenda item. Any decision held on such matter will be taken or conducted in open session
following the conclusion of the executive session.
ADJOURNMENT
If you wish to address the City Council in person, you can do so by attending the meeting at City
Hall. If you wish to have comments added to the council minutes about issues on the Agenda,
you may submit those comments to the City Secretary Office via email or on the city website.
Persons with disabilities who plan to attend this meeting who may need auxiliary aids such as
interpreters for persons who are deaf or hearing impaired, readers or, large print are requested
to contact the City Secretary's Office, at 972-624-3105 at least two (2) working days prior to the
meeting so that appropriate arrangements can be made.
2
_________________________________________
Tina Stewart, TRMC, CMC, City Secretary
CERTIFICATION
I hereby certify that above notice of meeting was posted outside the front door of City Hall by 5 p.m. on
the 11th day of March 2026.
3
Agenda Item No: 1.5
CITY COUNCIL Agenda Item Report
Meeting Date: March 17, 2026
Submitted By: Ana Alvarado
Submitting Department: City Secretary
Item Type: Announcement
Agenda Section: routine announcements, recognitions and proclamations
Suggested Action:
Items of Community Interest
Background:
4
Agenda Item No: 1.6
CITY COUNCIL Agenda Item Report
Meeting Date: March 17, 2026
Submitted By: Ana Alvarado
Submitting Department: Library
Item Type: Announcement
Agenda Section: routine announcements, recognitions and proclamations
Suggested Action:
Receive presentation from the Library regarding upcoming events and activities. (Charters)
Background:
5
Agenda Item No: 3.1
CITY COUNCIL Agenda Item Report
Meeting Date: March 17, 2026
Submitted By: Ana Alvarado
Submitting Department: Police
Item Type: Discussion
Agenda Section: work session
Suggested Action:
Receive a presentation, discuss and provide direction to staff on amending the Code of Ordinances
related to Electric Bicycles and Motor Assisted Scooters. (Foxall)
Background:
Review state law, and current ordinances related to electric bicycles and motorized scooters and provide
direction to staff for future ordinance amendments.
6
Agenda Item No: 3.2
CITY COUNCIL Agenda Item Report
Meeting Date: March 17, 2026
Submitted By: Ana Alvarado
Submitting Department: Parks & Recreation
Item Type: Discussion
Agenda Section: work session
Suggested Action:
Receive presentation regarding updates on public-private partnerships. (Kopsa)
Background:
7
Agenda Item No: 3.3
CITY COUNCIL Agenda Item Report
Meeting Date: March 17, 2026
Submitted By: Ana Alvarado
Submitting Department: General Admin
Item Type: Presentation
Agenda Section: work session
Suggested Action:
Receive a presentation from Oncor Customer Service Executive Rick Beall regarding electrical
infrastructure updates, street lighting, and Oncor projects impacting The Colony. (Beene)
Background:
8
Agenda Item No: 3.4
CITY COUNCIL Agenda Item Report
Meeting Date: March 17, 2026
Submitted By: Ana Alvarado
Submitting Department: Planning
Item Type: Discussion
Agenda Section: work session
Suggested Action:
Receive a presentation, discuss and provide direction to staff on amending the Code of Ordinances
related Accessory Dwelling Units. (Williams)
Background:
9
Agenda Item No: 3.5
CITY COUNCIL Agenda Item Report
Meeting Date: March 17, 2026
Submitted By: Ana Alvarado
Submitting Department: City Secretary
Item Type: Discussion
Agenda Section: work session
Suggested Action:
Council to provide direction to staff regarding future agenda items. (Council)
Background:
10
Agenda Item No: 4.1
CITY COUNCIL Agenda Item Report
Meeting Date: March 17, 2026
Submitted By: Ana Alvarado
Submitting Department: City Secretary
Item Type: Minutes
Agenda Section: consent agenda
Suggested Action:
Consider approving City Council Special Session meeting minutes from March 2, 2026 and Regular
Session meeting minutes from March 4, 2026. (Stewart)
Background:
Attachments:
March 2, 2026 Special Session DRAFT Meeting Minutes.doc
March 4, 2026 DRAFT Meeting Minutes.docx
11
MINUTES OF CITY COUNCIL SPECIAL SESSION
HELD ON
MARCH 2, 2026
The Special Session of the City Council of the City of The Colony, Texas, was called to order at
6:00 p.m. on the 2nd day of March 2026, at City Hall, 6053 Main Street, The Colony, Texas,
with the following roll call:
Richard Boyer Mayor Present
Judy Ensweiler Councilmember Absent (Personal)
Robyn Holtz Deputy Mayor Pro Tem Present
Brian Wade Councilmember Present
Dan Rainey Councilmember Present
Perry Schrag Councilmember Present
Joel Marks Mayor Pro Tem Absent (Personal)
And with five council members present a quorum was established and the following items were
addressed:
1. CALL TO ORDER
Mayor Boyer called the meeting to order at 6:30 p.m.
2. Discuss and consider the appointment, evaluation, reassignment, or duties of the following
advisory boards: Keep The Colony Beautiful
Councilmember Robyn Holtz arrived at 6:33 p.m.
3. Any action regarding the appointment, evaluation, reassignment, or duties of the following
advisory boards: Keep The Colony Beautiful
Motion to appoint Melanie Gray to Place 2 on Keep The Colony Beautiful Board –
Councilmember Brian Wade; second by Councilmember Dan Rainey; motion carried with all
ayes.
ADJOURNMENT
There being no further business to discuss, the meeting adjourned at 7:28 p.m.
APPROVED:
________________________________
Richard Boyer, Mayor
12
City of The Colony, Texas
ATTEST:
___________________________________
Tina Stewart, TRMC, CMC, City Secretary
13
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
MARCH 4, 2026
The Regular Session of the City Council of the City of The Colony, Texas, was
called to order at 6:31 p.m. on the 4th day of March 2026, at City Hall, 6053 Main
Street, The Colony, Texas, with the following roll call:
Richard Boyer, Mayor
Judy Ensweiler, Councilmember
Robyn Holtz, Deputy Mayor Pro Tem
Brian Wade, Councilmember
Dan Rainey, Councilmember
Perry Schrag, Councilmember
Present
Present
Present
Present
Present
Present
Joel Marks, Mayor Pro Tem Absent (Personal)
And with 6 council members present a quorum was established and the following items
were addressed:
1.0 ROUTINE ANNOUNCEMENTS, RECOGNITIONS and PROCLAMATIONS
1.1 Call to Order
Mayor Richard Boyer called the meeting to order at 6:31 p.m.
1.2 Invocation
Pastor James Falola with New Covenant Baptist Church 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
The Salute to the Texas Flag was recited.
1.5 Items of Community Interest
None
1.6 Receive presentation from Parks and Recreation regarding upcoming events and
activities.
Events Specialist Chrystie Gibbs provided upcoming events and activities to the
council.
2.0 CITIZEN INPUT
None
3.0 WORK SESSION
14
City Council – Regular Meeting Agenda
March 4, 2026
Page| 2
3.1 Receive presentation, discuss and provide direction to staff regarding a proposed
partnership between the City of The Colony and Friends of The Colony Animal
Services to jointly fund an indoor dog play space at The Colony Animal Services
facility as part of the City's animal shelter expansion.
Animal Services Director Mark Cooper provided an overview on the item.
Suzy Escalante presented an update to council.
Council provided discussion on the item.
3.2 Receive presentation regarding updates on public-private partnerships.
Community Services Director Jackie Kopsa provided an overview on the item to
council.
Justin Bosworth with MarineQuest provided a presentation.
Jaime Anderson with Stewart Peninsula Golf provided an update to council.
3.3 Council to provide direction to staff regarding future agenda items.
None
4.0 CONSENT AGENDA
Motion to approve all items from the Consent Agenda - Brian Wade,
Councilmember; second by Dan Rainey, Councilmember, motion carried with all
ayes.
4.1 Consider approving City Council Regular Session meeting minutes from February
17, 2026.
4.2 Consider approving a resolution authorizing the City Manager to execute a
Network Node Installation and Pole Attachment Agreement in Commercial Areas
with SQF, LLC.
RESOLUTION NO. 2026-015
4.3 Consider approving a resolution authorizing the Mayor to execute an Interlocal
Agreement with The City of Plano, Texas for Reciprocal Library Services.
RESOLUTION NO. 2026-016
4.4 Consider approving a resolution authorizing the City Manager to award a contract
to Nova Landscape Group for mowing services in the amount of $241,718.40,
utilizing an interlocal agreement with Tarrant County to piggyback on Bid No.
F2025205.
15
City Council – Regular Meeting Agenda
March 4, 2026
Page| 3
RESOLUTION NO. 2026-017
4.5 Consider approving a resolution authorizing the City Manager to award a contract
to Whirlix Design Inc., for the Perryman Park Playground replacement in the
amount not to exceed $482,727.00, utilizing BuyBoard Contract #781-25.
RESOLUTION NO. 2026-018
4.6 Consider approving a resolution authorizing the Mayor to execute a third
amendment to a legislative consulting agreement with Desk 138, LLC in the
amount of $36,000.00.
RESOLUTION NO. 2026-019
4.7 Consider approving a resolution authorizing the City Manager to execute the
Investment Grade Audit Energy Services Contract with Schneider Electric
Buildings Americas Inc., in the amount of $50,000.00, utilizing TIPS Contract No.
220104.
RESOLUTION NO. 2026-020
5.0 REGULAR AGENDA ITEMS
5.1 Discuss and consider approving a resolution authorizing the City Manager to
award a contract to F & F Concrete in the amount of $1,773,748.71 for the
reconstruction of 2,604 Linear Feet of streets and alleys throughout the city,
utilizing interlocal agreement with the City of Coppell Bid No. Q-1021-03.
Public Works Assistant Manager Gene Gray presented the proposed resolution to
council.
Council provided discussion on the item.
Motion to approve - Brian Wade, Councilmember; second by Robyn Holtz, Deputy
Mayor Pro Tem, motion carried with all ayes.
RESOLUTION NO. 2026-021
5.2 Discuss and consider approving a resolution authorizing the City Manager to
award a contract to C I Pavement in the amount of $1,889,781.05 for the
reconstruction of 5,960 Linear Feet of streets and alleys throughout the city,
utilizing TIPS-USA Cooperative Contract No. 230602-01.
Public Works Assistant Manager Gene Gray presented the proposed resolution to
council.
Council provided discussion on the item.
16
City Council – Regular Meeting Agenda
March 4, 2026
Page| 4
Motion to approve - Brian Wade, Councilmember; second by Perry Schrag,
Councilmember, motion carried with all ayes.
RESOLUTION NO. 2026-022
5.3 Discuss and consider approving an ordinance amending Chapter 6 Article IX
Section 6-205 of the Code of Ordinances entitled "Penalty" by amending the fine
range for multiple nuisance offenses committed within a 12-month period.
Deputy City Manager Joe Perez presented the proposed ordinance to council.
Council provided discussion on the item.
Motion to approve - Judy Ensweiler, Councilmember; second by Brian Wade,
Councilmember, motion carried with all ayes.
ORDINANCE NO. 2026-2641
Executive Session was convened at 7:19 p.m.
6.0 EXECUTIVE SESSION
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).
Regular Session was reconvened at 8:04 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
ADJOURNMENT
With there being no further business to discuss, the meeting was adjourned at 8:07 p.m.
APPROVED:
________________________________
Richard Boyer, Mayor
City of The Colony, Texas
ATTEST:
17
City Council – Regular Meeting Agenda
March 4, 2026
Page| 5
______________________________________________
Tina Stewart, TRMC, CMC, City Secretary
18
Agenda Item No: 4.2
CITY COUNCIL Agenda Item Report
Meeting Date: March 17, 2026
Submitted By: Ana Alvarado
Submitting Department: Finance
Item Type: Resolution
Agenda Section: consent agenda
Suggested Action:
Consider approving a resolution authorizing continued participation with the Atmos Cities Steering
Committee; and authorize the payment of four cents per capita to fund regulatory and related activities.
(Bredehoeft)
Background:
Attachments:
ACSC 2026 Assessment Model Staff Report.docx
Res. 2026-xxx Atmos Cities Steering Committee Continued Participation.docx
19
8185502
STAFF REPORT ON ASSESSMENT RESOLUTION
FOR ATMOS CITIES STEERING COMMITTEE
Purpose of the Resolution:
Most municipalities have retained original jurisdiction over gas utility rates and services
within municipal limits. The Atmos Cities Steering Committee (“ACSC”) is composed of 188
municipalities in the service area of Atmos Energy Corporation, Mid-Tex Division that have
retained original jurisdiction. Atmos is a monopoly provider of natural gas. Because Atmos has
no competitors, regulation of the rates that it charges its customers is the only way that cities can
ensure that natural gas rates are fair. Working as a coalition to review the rates charged by Atmos
allows cities to accomplish more collectively than each city could do acting alone. Cities have
more than 100 years experience in regulating natural gas rates in Texas.
ACSC is the largest coalition of cities served by Atmos Mid-Tex. There are 188 ACSC
member cities, which represent more than 70 percent of the total load served by Atmos-Mid Tex.
ACSC protects the authority of municipalities over the monopoly natural gas provider and defends
the interests of residential and small commercial customers within the cities. Although many of
the activities undertaken by ACSC are connected to rate cases (and therefore expenses are
reimbursed by the utility), ACSC also undertakes additional activities on behalf of municipalities
for which it needs funding support from its members.
The ACSC Membership Assessment Supports Important Activities:
ACSC is actively involved in rate cases, appeals, rulemakings, and legislative efforts
impacting the rates charged by Atmos within the City. These activities will continue throughout
the calendar year. It is possible that additional efforts will be necessary on new issues that arise
during the year, and it is important that ACSC be able to fund its participation on behalf of its
member cities. A per capita assessment has historically been used, and is a fair method for the
members to bear the burdens associated with the benefits received from that membership.
Explanation of Resolution Paragraphs:
I. This paragraph authorizes the continuation of the City’s membership in ACSC.
II. This paragraph authorizes payment of the City’s assessment to the ACSC in the
amount of four cents ($0.04) per capita.
III. This paragraph requires notification that the City has adopted the Resolution.
Payment of Assessment
The assessment payment check should be made out to “City of Arlington, C/O Atmos Cities
Steering Committee and mailed to City of Arlington, C/O Brandi Stigler, Atmos Cities Steering
Committee, PO Box 90231, Arlington, Texas 76004
20
1
CITY OF THE COLONY, TEXAS
RESOLUTION NO. 2026 - ____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF THE
COLONY, TEXAS, AUTHORIZING MEMBERSHIP IN THE ATMOS
CITIES STEERING COMMITTEE; AND AUTHORIZING THE PAYMENT
OF FOUR CENTS PER CAPITA TO THE ATMOS CITIES STEERING
COMMITTEE TO FUND REGULATORY AND RELATED ACTIVITIES
RELATED TO ATMOS ENERGY CORPORATION
WHEREAS, the City of The Colony is a regulatory authority under the Gas Utility
Regulatory Act (GURA) and has exclusive original jurisdiction over the rates
and services of Atmos Energy Corporation, Mid-Tex Division (Atmos) within
the municipal boundaries of the city; and
WHEREAS, the Atmos Cities Steering Committee (ACSC) has historically intervened in
Atmos rate proceedings and gas utility related rulemakings to protect the
interests of municipalities and gas customers residing within municipal
boundaries; and
WHEREAS, ACSC is participating in Railroad Commission dockets and projects, as well
as court proceedings and legislative activities, affecting gas utility rates; and
WHEREAS, the City would like to become a member of ACSC; and
WHEREAS, in order for ACSC to continue its participation in these activities which
affects the provision of gas utility service and the rates to be charged, it
must assess its members for such costs; NOW THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS:
I.
That the City is authorized to become a member in the Atmos Cities Steering
Committee to protect the interests of the City of The Colony and protect the interests of
the customers of Atmos Energy Corporation, Mid-Tex Division residing and conducting
business within the City limits.
II.
The City is further authorized to pay its 2026 assessment to the ACSC in the
amount of four cents ($0.04) per capita.
21
2
III.
A copy of this Resolution and approved assessment fee payable to “City of
Arlington, C/O Atmos Cities Steering Committee” shall be sent to:
City of Arlington
Attn: Brandi Stigler
C/O Atmos Cities Steering Committee
PO Box 90231
Arlington, Texas 76004
PRESENTED AND PASSED ON THIS 17TH DAY OF MARCH 2026, BY A VOTE
OF _____ AYES AND ______ NAYS AT A REGULAR MEETING OF THE CITY OF THE
COLONY, TEXAS.
_________________________________
Richard Boyer, Mayor
City of The Colony, Texas
ATTEST:
___________________________________
Tina Stewart, TRMC, CMC, City Secretary
APPROVED AS TO FORM:
___________________________________
Jeffrey L. Moore, City Attorney
22
Agenda Item No: 4.3
CITY COUNCIL Agenda Item Report
Meeting Date: March 17, 2026
Submitted By: Ana Alvarado
Submitting Department: Parks & Recreation
Item Type: Resolution
Agenda Section: consent agenda
Suggested Action:
Consider approving a resolution authorizing the City Manager to award a concessionaire agreement to
DFW Boat Charters. (McCallum)
Background:
This agreement carries no fiscal burden for the City. The operator, DFW Boat Charters, assumes all
operational costs (e.g., staffing, supplies, boats, etc.), while the City realizes new revenue through the
agreement and increased park attendance, particularly during the spring and summer seasons. A formal
concessionaire agreement allows the City to ensure equitable and controlled business operations within
the park. The proposal received from DFW Boat Charters is attached to the agenda item. Our
recommendation is to award the concessionaire contract.
Attachments:
Council Memo - SCP Recreational Boating Services.pdf
Stewart Creek Park Proposal - DFW Boat Charters.pdf
Res. 2026-xxx DFW Boat Charters.doc
23
City of The Colony
Memo
To: Mayor and Council
From: Matthew McCallum, Parks & Recreation
CC:
Jackie Kopsa, Community Services Director
Troy Powell, City Manager
Date: March 17, 2026
Re: Recreational Boating Services at Stewart Creek Park
Purpose
To consider approving a resolution to authorize the City Manager to award a
concessionaire agreement to DFW Boat Charters.
Background
In 2021, the Parks and Recreation Department installed an electric gate system at
Stewart Creek Park to generate revenue through park day passes and annual
passes. This system was implemented to help offset operational costs while also
creating a funding source for future park development.
Since the introduction of the gate system and park day pass and annual pass
initiative, park traffic has steadily increased. Users now include both traditional
park patrons and boating businesses operating during peak season. Last spring,
Upper PARD Management encountered multiple customer service concerns
related to boating operators conducting business within the park.
Upon further review, it was determined that certain operators were misusing their
annual passes by distributing them to guests, allowing entry into the park without
purchasing required day passes. As a result, annual passes were revoked from
those individuals.
Following this issue, PARD Management researched best practices and
alternative models for businesses operating from municipal lake parks. Several
cities within the DFW metroplex, including the City of Lewisville, have established
24
2
formal concessionaire agreements that authorize a sole operator to conduct
boating-related services, such as pontoon boat rentals, within their lake parks.
A formal concessionaire agreement would establish a structured system of checks
and balances for all parties involved, particularly regarding liability considerations
associated with the U.S. Army Corps of Engineers, the City, and the operator.
Such an agreement would also:
▪ Provide enhanced recreational opportunities for the community
▪ Create a new and defined revenue stream for the City
▪ Ensure equitable and controlled business operations within the park
▪ Increase park day pass sales from customers entering for boat rentals
PARD Management, in coordination with the Purchasing Division, initially solicited
general interest from potential operators to gauge market participation and identify
qualified firms. Five (5) local businesses responded and were subsequently invited
to participate in a privately issued Request for Qualifications (RFQual) distributed
through PlanetBids. The RFQual outlined the scope of services and established
specific evaluation criteria to ensure a fair and objective review process. Of the
five (5) operators invited, one (1) operator, DFW Boat Charters, submitted a
proposal by the stated deadline. The proposal was independently reviewed and
scored by three (3) PARD staff members based on the criteria set forth in the
RFQual, resulting in a final composite score of 87.3. A copy of the proposal is
attached for your consideration.
Recommendation
The proposal received from DFW Boat Charters is attached to the agenda item. Our
recommendation is to award the concessionaire agreement.
25
I. Experience and Qualifications:
Experience Operating a Recreational Boating Rental or Marine Services Business
My name is Justin Thomure and I have operated DFW Boat Charters LLC for six consecutive
summers and, during that time, have completed more than 4,000 charters across our locations.
Over the years, we have operated an average fleet of approximately seven vessels, with the
2026 season planned to include nine vessels; however, we would only intend to operate five
vessels at Stewart Creek Park. I founded and built this business from the ground up and did not
purchase an existing operation. In the early years, I personally handled all aspects of the
business—including customer service, mechanical work, maintenance, and captaining—which
required extreme hours but gave me a thorough understanding of every operational component.
As a result, I am not overly reliant on any single individual and can step in wherever needed. I
have also completed extensive offseason vessel remodels myself, taking boats completely apart
and rebuilding them to ensure they meet our standards. I have personally hired and trained over
40 full-time and part-time captains, as well as two office managers, throughout the years. I am
very selective about the individuals we contract, conducting interviews with many candidates
and utilizing multiple rounds of interviews, as we believe strong hiring begins in the interview
process and take it very seriously. I have great respect for our captains and office manager, and
that respect is mutual. This business is only possible with a great team, and I believe we have
built an exceptional one.
Number of Years in Operation and Longevity of the Business
DFW Boat Charters LLC has been in business since 2020 and has fully operated for 6
consecutive summers. We have successfully completed thousands of trips over the years.
Having completed so many trips, we have gained a great amount of experience and fine tuned
our operation well.
Scope and Scale of Boating Services Provided
We have always specialized in double decker vessels with waterslides. These vessels are a ‘fan
favorite’ and offer a wider range of activities to our customers when compared to a regular
pontoon/tritoon or ski boat. Customers especially enjoy the second deck for relaxing, snacking,
photo opportunities, and the waterslide. These boats also have larger motors so we have the
ability to pull tubes and wakeboard behind them, both popular lake activities. Another benefit of
our double deckers is how spacious they are, they all fall within the 27-30’ range which is
considered a very large tritoon. The added space allows customers to spread out comfortably
and makes room for a larger table and cooler for meals and refreshments.
26
Aside from double decker vessels, we also offer luxury yachts for variety and a more special
lake experience. Our 35’ cruiser yacht offers a more refined charter experience and is especially
popular with customers seeking additional comfort and amenities. This vessel features a full
restroom, interior seating/living space, and a galley, which significantly enhances the overall
guest experience. While operating cruiser yachts involves additional mechanical and systems
complexity—including twin engines, thrusters, generators, air conditioning, freshwater systems,
and windlass anchoring systems—we have invested the time and expertise to properly operate
and maintain them. We also own a quad-axle trailer capable of hauling these vessels, allowing
us to perform maintenance off-site and maintain consistent quality without relying solely on
delayed and spotty marina services.
Our 24-foot tritoon is well suited for smaller groups or those looking for a slightly more agile
experience on the lake. It can be equipped with a dual bimini top that provides full-boat shade
coverage, making it a comfortable option for guests who prefer additional protection from the
sun while still enjoying an open and fun on-the-water experience.
We include a large 18’ lily pad floating mat free of charge with every rental. Lily pads are fun for
all ages from children up to adults and provide a halfway point and an extra layer of safety for
those customers that want to get into the lake but are not directly comfortable getting fully in.
As for scale, our intentions are to operate 3 double decker tritoons with waterslides, one
‘regular’ tritoon and a smaller cruiser yacht. However, we are open to a discussion which
particular boats to operate at the park, depending on a few variables including what the City
may prefer and what fits within our business model. A total of five boats is, in our view, well
within the park’s capacity and avoids overconcentration while meeting demand.
In summary, our fleet and operating plan are intentionally designed to provide a high-quality
charter experience while maintaining a reasonable and responsible scale for the park. By
offering a variety of vessels—from our popular double decker tritoons to a cruiser yacht and a
standard tritoon—we are able to meet a wide range of customer needs, while still focusing on
the most popular option. We are confident that a five-vessel operation is appropriate for the size
of the park and would allow for efficient and well-controlled operations.
Experience Operating in Public Parks or Municipal Environments
We have a great deal of experience operating in public parks. We have operated at Tower Bay
Park for many years. We have operated (and will continue to operate) at Little Elm Boat Ramp
for the past 5 years with some of our largest vessels. Additionally, in 2021 we had a permit from
the City to operate at Sycamore Bend Park and we only discontinued this due to a
reconstruction of the road leading to the park as well as high waters making it difficult to get our
vessels under the train tracks going over the lake right next to highway 35. Furthermore, we
have operated at your park, Stewart Creek Park, for the past 4 years with no problems. We
have worked hard to always maintain all proper licensing for our captains, vessels and the
27
proper insurance throughout this entire time, something we have seen many other operators
neglect to do as it is very expensive and a full undertaking to do so.
Operating in a public park environment carries a responsibility that we take seriously. We are
mindful that the boat ramp is a shared resource and make every effort to minimize our footprint
by limiting dock occupancy and adhering to best boating practices. When possible, our captains
often assist less-experienced recreational boaters with docking and trailer alignment, which
helps reduce congestion, improve safety, and prevent unnecessary damage to the dock and
surrounding facilities.
Frequent commercial use of Stewart Creek’s limited boat ramp space and limited trailer parking
spots could quickly get in the way of recreational users. Because we keep all of our vessels
readily available at a marina, we would not need to utilize your boat ramp or trailer parking
spaces freeing up space for personal-use boaters. Additionally, If awarded the permit, we will
continue to implement staggered pickup and return times as best as possible to ensure smooth
operations and avoid congestion at the boat dock.
Qualifications and Experience of Ownership and Key Management
My name is Justin Thomure and I am the sole owner of DFW Boat Charters LLC. I graduated
college with a 3.97 GPA and a degree in Actuarial Science and began to work as an Actuary for
Blue Cross Blue Shield of Texas in Plano. After approximately four years of actuarial work, I
decided that starting my own business would be more aligned with my aspirations. After
balancing both roles for a year, I chose to fully commit to the charter business once it proved to
be a viable option. I have greatly enjoyed growing DFW Boat Charters LLC into what it is today
including all of the trials and tribulations.
I firmly believe that my education and experience working alongside accomplished professionals
in the financial sector has enabled me to bring a distinct operating style into the industry—one
rooted in trust, integrity and financial stability. This, in combination with a disciplined work ethic,
has played an important role in our continued success and repeat customer base.
As the founder and current owner/operator I built this business from the ground up. This
afforded me the ability and required me to learn all the ins and out of the vessels (docking,
anchoring, trailering, maintaining etc). These are not simple tasks especially in not so ideal
conditions such as higher winds or choppy water. It is an entirely separate skill set as well
training all of our captains on these things, a skill that I believe that I have become quite good at
over time. Having trained 40+ full time, part time and backup captains over the years and
personally captaining 500+ trips (especially in the beginning) I believe I have the qualifications
and experience to continue operating a successful business for our customers and for the City
of the Colony.
28
Another key role within our business is Kim, our office manager. During the primary operating
season (April–October), she works 48 hours six days a week, overseeing all customer
service–related functions in addition to supporting administrative and operational needs. Kim
brings seven years of customer service experience to the role, including prior responsibilities as
a product trainer and quality analyst, which enables her to maintain high service standards,
ensure consistency in customer interactions, and support staff performance. Having Kim on the
team (who has been with us 2 years now) allows us to deliver top-tier customer service while
enabling me to focus on the day-to-day operational management of the business.
Our captains are carefully selected through a thorough interview process and are chosen based
on boating experience, professionalism, and strong customer-service skills. Each captain
completes structured training that includes hands-on dock practice, operational procedures,
safety expectations, and real-world scenario preparation before running trips independently. We
also utilize lead captains and management oversight to provide on-the-water support and
maintain consistent standards. Overall, our captain team reflects the level of experience and
professionalism required to operate safely and deliver a high-quality charter experience.
II. Customer Service and Reputation:
Customer References and Testimonials | Online Reviews and Overall Public Reputation
Throughout the season, we manage a sizable fleet with a higher volume of trips. Despite this
scale, we have been intentional about maintaining a hands-on, detail-oriented approach to
customer service. This consistency has resulted in a strong base of returning customers and a
steady stream of referrals, which we believe is the clearest indication that our service standards
remain high even as our operation has grown.
Our customers are the foundation of our business, which is why customer service is a top
priority. We believe this commitment is reflected in our five-star rating and hundreds of Google
reviews over the past six seasons. (https://tinyurl.com/DFWBoatCharterReviews).
History of Customer Complaints and Resolution Practices
Conflict resolution is an important part of any customer service related business.
One example occurred last summer when a customer booked a three-hour charter but arrived
one hour late, despite our booking confirmations, reminder messages, and policies clearly
emphasizing timely arrival due to a tight schedule they seemed bothered that we would not add
another hour onto their trip for free. Fortunately, we did not have a subsequent trip scheduled,
which allowed us to extend their outing by an additional hour at no charge, despite the added
29
operational costs associated with extra captain time. The customer was very appreciative of our
flexibility and efforts to accommodate them.
Although we did not have to cancel a single trip in 2025 due to vessel issues/malfunctions, it
has happened a few times in years past. Therefore, another example of conflict resolution would
be when we had a vessel's hydraulic steering start malfunctioning in the middle of a trip.
Because our office is very close to where we keep our vessels and I make sure to always be on
call during trips, I was able to quickly grab another double decker with a waterslide to swap out
with their existing double decker vessel, one that was a bit more spacious and with a larger
motor. Additionally, we also gave them an extra hour at the end at no cost for having to switch
boats. The customers were very grateful for the extra hour and had a great time on the lake.
One last example involved out-of-state guests who booked a birthday celebration while traveling
to Dallas specifically for the charter. When their assigned captain had an emergency and
became unavailable at the very last minute, we offered the guests a full refund or option to make
it work just with a slightly later start; however, they preferred to proceed with the trip and
demanded adamantly that we make the trip work. We informed them that the charter would
need to start slightly late while management rushed over to serve as a backup captain, and they
were understanding of the delay. Although the departure was delayed by approximately 20
minutes, we extended the trip by 40 minutes and included complimentary watersports (tubing) to
enhance their experience. Despite the unexpected circumstances, the guests had a very
positive experience, with several leaving five-star reviews.
Both Kim and I place a strong emphasis on customer satisfaction and genuinely care about the
quality of each guest’s experience. Customers quickly recognize this sincerity, which helps
make any concerns or issues easier to resolve through open and genuine discussion.
Demonstrated Commitment to Customer Satisfaction
Furthermore, as mentioned in the previous section, we have an extensively trained full time 6
days a week office manager. She knows everything about our vessels and spends all of her time
dedicated to answering customer questions, booking customers, sending trip reminder texts the
day before and morning of the trips and any other customer related items to maintain our level
of customer service.
We follow the principle that the customer is always right, and in doing this we are able to get to
the bottom of every conflict and solve it in a manner that both parties see fit. It is very
uncommon that we have dissatisfied customers, but in the few instances that we have had such
problems arise, we take each instance seriously and ensure the customer is satisfied with the
resolution. We hope our online google reviews over the past 6 summers reflect our commitment
to quality customer service.
30
III. Boating Schedule and Availability:
Ability to Operate During Peak and Shoulder Seasons
As owner/operator, I do not take any days off during the main operational months. We only have
approximately five peak months to generate revenue for the entire year, and there are
significant ongoing expenses in this business (insurance, slip fees, fuel, office manager wages,
vessel maintenance, booking software, credit card processing fees, captains, mechanics, new
motors, etc.). Given this, we are prepared to work long hours during peak months, as this is
what the business demands and what we signed up for. Expectation setting is critical, and all
captains are informed upfront of how hours typically fluctuate from shoulder-season scheduling
into peak-season demand. This is clearly communicated in our job postings and throughout the
hiring process, and our captains understand and accept these seasonal expectations. While
challenging at times, we truly enjoy the work and find it rewarding to see our customers enjoy
themselves. Our office manager answers phones six days a week, and I answer them on the
seventh day. We are open for business every day of the week, especially during busy weekends
and holiday weekends. Additionally, we regularly accommodate last-minute bookings, serving
customers who may not have planned in advance and addressing an important need in the
market. Our flexible scheduling and availability are key advantages that we take pride in
offering.
Proposed Days and Hours of Operation
Hours of Operation:
● 9AM - 10PM Monday-Sunday (April - October)
● 10AM - 7PM Monday-Sunday (November - March)
Our vessels have all required safety navigation lights and we allow a few of our vessels to go
into the night as they have interior lights as well to light up the inside of the boat for our
customers. Customers enjoy being on the lake after dark in the summer as it is not as hot, not
as busy on the lake, and overall a great experience with less fellow boaters. It is especially
popular on those days where cities provide firework shows, a truly unique experience for our
customers. Furthermore, many customers are unable to handle extended sunlight or heat,
which can make daytime trips physically challenging or impractical.
Staffing Coverage During High-Demand Periods
Staffing coverage at high demand times begins in February when we confirm availability with
our returning captains and contract any new captains that are needed. It is critical to retain
enough captains to fulfill the expected needs of the summer, which includes having several
31
part-time and backup captains who can fill in for emergencies or if we lose one of our main
captains during the summer due to unforeseen circumstances. Furthermore, as mentioned in a
previous section, I am always available to fill in for captains in times of emergency, creating an
extra safety net and ensuring the reliability of our customers’ trips. Additionally, I am able to fill in
for our office manager if an emergency arises, ensuring continuity on both the operational and
customer service sides of the business. We regularly host bachelorette and bachelor parties,
birthdays, gender reveals, anniversaries, and other milestone events that clients often plan
months in advance. Ensuring these trips operate on time and without disruption is a critical part
of our business.
Flexibility to Adjust Operating Hours Based on Park Usage, Weather, or Special Events
We are accustomed to always keeping a very close eye on weather for the safety of our
customers and our captains. Our weather cancellation policy is 2-3 hours before the trip start
time so weather monitoring in advance is crucial. In light of this we make it a point to always be
flexible in these times with rescheduling customers or shifting trip times back due to weather
concerns. It is an important part of new captain training to show how to use radar apps and to
emphasize that these apps are not always accurate, making it important to also consider wind
conditions and cloud patterns when monitoring weather.
We understand the need to remain flexible in our availability during park special events and can
reassure the City that this will not be an issue. Additionally, our proposed operating hours listed
above under “Proposed Days and Hours of Operation” are designed to align with park hours.
IV. Reservation and Payment System:
Ease of Use of the Online Reservation and Booking Platform | Real-time Availability and
Booking Management
We utilize a booking software that shows live available time slots. This allows customers to book
online and view real-time availability and time slots they can actually reserve without having to
call. This works especially well during busy periods such as sunset cruises or peak holiday
seasons, when customers are in a rush to secure their preferred time slot without the fear of
losing it to other customers. On the other hand, customers can also call us to book. Many
customers feel comfortable booking over the phone, especially those who are not
technologically inclined or those who have questions they want to clarify before reserving.
Because a significant number of customers call with questions or simply prefer to book by
phone, having full-time customer service support through our office manager is critical to
ensuring prompt communication, accurate scheduling, and a smooth booking experience. Here
is the link to our booking software that is on our website:
https://boatclubapp.com/Rentals/Index/dwfcharters
32
Ability to Register Patrons Electronically
When a customer books online or over the phone, a confirmation email with all trip details is
automatically sent. This email includes important information outlining their official trip details,
our policies, what guests can and cannot bring, and other general trip guidance. All waivers and
rental agreements are completed through our booking software, and links to both documents
are included in the confirmation email. This allows customers to share the links with their group
so waivers can be completed online and in advance, saving time on the day of the trip. For
customers who are unable to complete the waiver ahead of time, the captain can pull up a QR
code within the booking software app for guests to scan and complete on their phone. These
waivers and agreements are then stored within our system and remain linked to each trip for
years afterward. All of this to say, yes all customers can register electronically.
Electronic Payment Processing with no Onsite Cash Exchange
The majority of payments are processed via credit or debit card; however, we also accept Zelle
and offer a small discount due to the absence of credit card processing fees.
Ability to Provide Detailed Financial Reports and Audit Access to the City
We stay up to date with our company bookkeeping and financial records as it is another key role
for our office manager, Kim. Therefore, any requested financial documentation can be provided
promptly.
V. Operational Plan and Safety Procedures:
Day-to-Day Operational Management Plan
Kim and I run all of the day to day operations of the business. Kim’s focus is on customer
service, website, software, and social media, while I focus on the operations and financial
decisions of the business. It is worth mentioning that neither I nor Kim have another job, this is
my only business and therefore our only business related focus. This level of dedication enables
us to meet the increased operational demands of the peak season. In the early stages, I
operated the business while maintaining my career as an actuary; however, it became clear that
doing both successfully was not sustainable, leading me to leave actuarial work and dedicate all
of my time to the boat charter business.
Kim and I maintain shared Google Sheets to track our to-do items, which we regularly update
and reorganize as new tasks arise or priorities shift. Providing an overly granular day-to-day
operational breakdown is difficult, as priorities frequently shift based on many moving parts and
changing daily needs; however, we can assure the City that we discuss and reassess priorities
daily—often multiple times per day—to ensure the right tasks are being completed at the right
33
time. Below are some examples of our day-to-day responsibilities.
● Answer and return customer calls and voicemails
● Respond to customer emails
● Customer outreach for existing trips
● Waiver and forms check
● Website and software updates
● Price adjustments including holiday increases
● Vessel maintenance both routine and non-routine
● Vessel safety check
● Vessel weekly inspections
● Vessel biweekly out of water inspections
● Fixing in house (usually) or occasionally outsourcing to our trusted contractors
mechanical/electrical/fiberglass/AC work/hydraulic
● Vessel COI’s
● Vessel stability letter acquisition and reissuance following modifications(upgrades)
● Vessel refueling
● Interview/hire/train captains
● Assigning captains to trips
● Captains post weekend/trip debriefs
● Captaining trips when no other captains are available
● Weather monitoring
Staffing Structure and Training Programs
Our management structure is led by me as the Owner/Operator and CEO. Reporting directly to
me are Kim, our Office Manager, and our Head Captain, who together oversee daily
administrative functions and on-the-water operations. Supporting them are our Lead Captains,
who provide additional leadership and coordination on the lake. Below the Lead Captains is our
broader captain team, consisting of full-time, part-time, and backup captains who ensure we
maintain reliable staffing coverage throughout the season.
Office manager training and annual refresher training are crucial since we are a seasonal
business. Initial training typically takes place over a 3–4 week period, or until I feel the office
manager is fully prepared to operate independently. A significant portion of this training includes
shadowing me as I walk through the full range of office manager responsibilities, including
listening in on and participating in real customer phone calls as they come through.
We begin office manager training using a document I have prepared outlining our internal
operating procedures, which I personally review with staff in training. This includes, but is not
limited to, the following:
● Business information and FAQs
● Visual organization tools and reference materials (see Exhibit B below)
● Booking software management
34
● Charter calendar management
● Services offered
● Boat fleet information
● Handling emails, phone calls, and customer text messages
● Day-to-day management responsibilities
Office managers typically spend the first couple of weeks becoming familiar with and
memorizing the information in the onboarding documentation. This also ensures they are
comfortable navigating the documents and can quickly reference them if they ever need
clarification. Training then transitions into mock call scenarios between the office manager in
training and I to prepare them for real customer calls and inquiries. Annual refresher training for
returning office managers typically lasts only a few days, but it helps ensure operations remain
smooth and consistent from summer to summer.
A key role we have not discussed thus far is our Head Captain. This position plays a key role in
ensuring safe, reliable, and consistent on-the-water operations, while also supporting vessel
readiness through routine maintenance and oversight. When training a Head Captain, I have
found the most effective approach is having them shadow me completing key tasks firsthand,
while also assigning them their own responsibilities that gradually increase in difficulty over time.
Training is structured progressively, according to the Head Captain’s current ability and
performance to ensure steady development in a safe and controlled way. During peak summer
months, the Head Captain splits time between captaining charters and completing essential
maintenance items such as oil changes, impeller service, trailer upkeep, safety equipment
checks, refueling, and general vessel cleaning, repairs, etc. Keeping these tasks in-house
improves vessel availability, reduces downtime, and ensures work is completed to our
standards. To support this role, we maintain an office and full 1,500 square foot shop located
next to the marina where our vessels are stored. In the event we do not have a Head Captain, I
am able to assume this role as needed, as I am experienced with all maintenance items and
personally train captains on these procedures to begin with.
In addition to completing much of our maintenance in-house, we also work with a small group of
trusted outside marine mechanics when a second opinion is needed, an extra set of hands is
beneficial, or when workload and timing require additional support. We have worked with these
individuals for many years and have built strong, dependable relationships with them. Because
we have consistently provided them with a meaningful amount of work over time, they prioritize
our vessels when service is needed, which helps reduce downtime and maintain reliability
during peak season. This provides added peace of mind knowing that if an issue cannot be
resolved in-house, we have reliable support readily available.
The next layer of our staffing is our captain team, which includes full-time summer captains
(approximately 30–40 hours per week), part-time captains (10–20 hours per week), and backup
captains (0–10 hours per week). Several of our most experienced captains are designated as
lead captains, whose role is to monitor nearby vessels on the water and serve as a point of
contact to answer questions or provide support to other captains in their area as needed.
35
Furthermore, a select group of our most capable and mechanically inclined captains assist
during the winter months with vessel improvements, maintenance, and remodels. Recent
projects have included converting pontoons to tritoons to increase stability and buoyancy,
repowering vessels with brand-new outboard motors, and replacing carpet with vinyl flooring for
improved durability and ease of cleaning.
Training new captains is an important part of our business. We have a full four day training
program for our new captains. The first day I give a four hour presentation on vessel operation
instructions, different vessel types and safety procedures. Followed by four hours of on the
water dock training (practicing tying up to the dock given different wind situations and scenario
testing based on dock availability) with more additional items explained and then showed hands
on.
The following day consists of four additional hours of presentation covering passenger safety
briefing, booking software navigation and payment collection process followed by on-the-water
training where we dive deeper into procedures. This includes how to anchor, recommended
anchoring locations, key information about the lake, popular attractions, how to operate every
item on the vessel, and where all safety equipment is located. The day concludes with additional
dock training.
The third day is where they tag along for a couple of trips with one of our best captains seeing
the trip procedures, watching a safety speech in person, helping with needed tasks and just
asking any questions they may have in the process while absorbing as much information as
possible.
In addition to the initial three training days, captains are provided a dedicated day (4th day) to
operate a vessel at their assigned pickup location. During this time, captains conduct repeated
docking and anchoring practice, either independently or accompanied by management. Initial
dock training is typically done in a group setting with multiple captains, whereas this session is
one-on-one with a management member if they choose. This process allows captains to
practice tying up in a variety of positions and under different assumed wind conditions, ensuring
they are fully prepared for their first trips. Because docking is often the most challenging aspect
for new captains, we place significant emphasis on this in training.
As new captains begin their first trips it is critical for them to stay in contact with Kim or I so we
can answer any and all questions they may have, allowing them to feel fully comfortable and
confident. Over the years I have heavily fine tuned this training process into what it is today and
we take pride in providing captains with all the tools needed to thrive in this role.
Many of our captains enjoy this work and return year after year. For returning captains, we
conduct an annual refresher training to reinforce skills and operational standards. We also use
this time to reinforce the importance of safety and to emphasize that even experienced captains
must avoid becoming complacent, as our customers rely on consistent vigilance to keep them
safe.
36
Emergency Action Plan (EAP)
In our training we teach captains about their vessels and what to do in emergencies. For a man
overboard, we keep PFD throwables on all vessels (per Texas law). This PFD is to be thrown to
the individual to keep them afloat (if they cannot swim) until we can get the vessel closer to
them to pull them out of the water. With that being said we require all customers to have a life
vest with them in the water while they are swimming, no exceptions. So this scenario would only
apply if somehow a customer were to fall off the boat while anchored or while cruising.
For a possible sinking vessel, we train captains to immediately have all customers put a life vest
on and stay together inside of the vessel and call 911 and then to call management. I would very
likely arrive much quicker than a game warden would be able to as our office is five minutes
from the marina and we keep a backup boat at the marina in the unlikely event a scenario like
this were to happen. Unfortunately, game wardens do not frequent Lake Lewisville as often as
one might expect, which makes having a reliable backup plan especially important.
For an injury of any sort, captains are trained to first assess the situation. For minor issues such
as scrapes or small cuts, captains use the first aid kit on board. If the issue is severe, they
immediately call 911 then management and safely hurry back to the dock.
For all other emergencies, captains are trained to quickly assess severity and respond
accordingly. In severe situations, they call 911 immediately and then notify management. In
non-severe situations, they contact management first for guidance and support if needed.
Captains are trained to remain calm, take control of the situation, and act firmly when necessary
to protect passenger safety.
Please also note these are extremely rare scenarios, but as part of our emergency action plan
and safety protocols, we still train captains for the possibility of such instances.
Weather awareness is a key part of new captain training, including how to properly use radar
apps and the importance of understanding that radar is not always fully accurate. Captains are
trained to also evaluate real-world indicators such as wind direction, wind shifts, and cloud
development. On days with multiple trips, we maintain a captains’ group chat to monitor radar
updates, compare app differences, and communicate changing conditions in real time. If a
fast-moving cold front develops, captains coordinate directly with management and are trained
to safely return passengers to the pickup location and then seek shelter at a nearby marina or
under a bridge. These situations are uncommon, but our proactive monitoring allows trips to
conclude well ahead of storm activity when needed.
37
Compliance with US Army Corp of Engineers Rules, Regulations, and All
Applicable Laws
We take the rules in place very seriously and ensure all of our captains and vessels comply with
all applicable laws and regulations. We know many of the game wardens as we talk to them
frequently on the lake and via phone call/text if they/we have any questions, primarily Game
Warden David Spangler and Game Warden Clint Borchardt. We work directly with Game
Warden Clint Borchardt on the COI’s (Certificate of Inspection) for our vessels. We reach out to
them when we see other charter/rental boats likely operating illegally without the required
licensing or inspections. All vessels have all required safety items at all times.
Insurance Coverage Meeting or Exceeding City Requirements
We do have insurance coverage meeting city requirements ($1,000,000). We have always had
insurance on all of our vessels since our inception 6 years ago. This is required by TPWD for
any boat that is registered as a livery vessel.
Boater Education, Certification, and Safety Briefing Procedures
We specialize in charter trips. A charter trip means that the vessel is operated by a professional,
licensed captain on behalf of passengers, rather than being turned over to customers for
independent operation.
Chartered boat operations are demonstrably safer than bareboat rental operations because a
trained, experienced operator remains in control of the vessel at all times. All of our captains
have the required Texas Boater Safety Course completed in addition to many of our captains
also being Party Boat Operator (PBO) certified and CPR certified. The presence of a qualified
captain significantly reduces risk by ensuring compliance with navigational rules, proper speed
management, and appropriate responses to changing conditions (such as weather) on crowded
waterways. In contrast, rental operations typically place vessel control in the hands of
individuals with limited or no boating experience, increasing the likelihood of operator error, poor
judgment, and unsafe maneuvers. This distinction alone accounts for a substantial reduction in
the likelihood of boating accidents.
In the beginning years of DFW Boat Charters LLC we provided both rentals and charters, but
after completing 1,000+ bareboat trips we decided to officially move away from these types of
trips as we felt our vessels as well as the customers themselves were in much better hands with
one of our charter captains. In our experience, charter trips with a certified captain means much
less damage to the park's boat dock, less safety related accidents and an overall safer place for
other recreational boaters to operate their vessel.
All of our captains are required to give a safety speech to customers before the trip commences
that lasts about 5-10 minutes depending on the vessel. This includes identifying the location and
38
proper use of life jackets, explaining rules for safe movement on the vessel, and outlining
second deck and bow area use guidelines (vessel dependent). Guests are also informed about
emergency procedures and the importance of remaining seated while the vessel is underway to
ensure a safe and enjoyable experience for everyone onboard. We also include a YouTube
video link in the rental confirmation email that walks customers through key boating safety
information. This helps ensure guests arrive with a baseline understanding of common
boat-related safety topics before they even step on board. We view this as an important part of
customer education and a proactive way to support a safer, smoother experience for everyone
involved.
Risk Management and Incident Response Protocols
Effective risk management is a foundational component of operating a charter boat company as
it ensures the safety of passengers, crew, and surrounding boaters while maintaining
compliance with state and federal regulations. Risk management is embedded throughout every
aspect of our charter operations, from comprehensive captain training and proactive vessel
maintenance to readily available life vests, onboard safety procedures, and continuous attention
to guest whereabouts and safe positioning at all times, both while the vessel is underway and
when at anchor. Here are some safety measures which we hope demonstrate the seriousness
with which we approach passenger safety and operational responsibility.
● For our non-fiberglass vessels - our fleet consists exclusively of tritoon vessels rather
than traditional two-log pontoons, as tritoons provide significantly greater stability and
safety. The third center tube adds approximately 50% more buoyancy, improving weight
distribution, handling, and overall stability, particularly during passenger movement,
docking, and variable lake conditions. This design also provides redundant flotation
through three independent pontoons, significantly reducing the risk of loss of buoyancy
compared to traditional monohull boats.
● Each of our fiberglass vessels is equipped with three independent bilge pumps, offering
added protection in the event of water intrusion. Multiple pumps provide redundancy,
ensuring that if one system fails or becomes overwhelmed, additional pumps remain
available to manage incoming water and maintain vessel safety.
● Every vessel in our fleet is equipped with a dedicated trailer, allowing us to regularly
remove boats from the water for thorough inspections and preventative maintenance.
This frequent haul-out process ensures all mechanical, structural, and safety
components remain in proper working condition and meet our safety standards.
● Captain training emphasizes the importance of reliable communication, including a
requirement that all captains carry a portable phone charger to ensure uninterrupted
contact in the event of an emergency and to support routine safety check-ins throughout
the day.
● All of our vessels keep life vests readily available in visible locations on board, typically
secured with bungee cords along the side rails of the vessel. We believe this is much
safer than storing life vests under seats, as they can be accessed far more quickly in an
emergency.
39
● We maintain an annual TowBoat membership for all vessels as part of our risk
management and contingency planning. In the event a vessel cannot be reached
immediately due to a mechanical issue or breakdown, our TowBoat coverage allows for
prompt professional assistance. This ensures passenger safety, minimizes downtime,
and reduces the risk of prolonged on-water delays.
● Since our office and shop space is owned, not leased, we avoid the uncertainty and
disruption that can come with lease expirations or renewals. We view this as an
important off-the-water risk management measure that supports long-term operational
stability and consistent service.
● We strictly enforce maximum passenger limits for every vessel to ensure safe and
comfortable operations. In addition to following Coast Guard requirements, we
intentionally set our internal passenger limits below the maximum allowable capacity to
provide an additional margin of safety. Please see the table in the subsequent section,
“Age and Condition of the Proposed Fleet | Type, Capacity, and Suitability of Vessels for
Public Use” for the exact capacity limits by vessel.
VI. Fleet Quality and Maintenance:
Age and Condition of the Proposed Fleet | Type, Capacity, and Suitability of Vessels for Public
Use
Maintaining our fleet to stay in excellent condition is a top priority and a cornerstone of our
commitment to safety and guest satisfaction. Each vessel undergoes regular inspections,
routine maintenance, and thorough cleaning to ensure that every mechanical, structural, and
safety system is fully operational. By keeping our boats in peak condition, we not only enhance
the overall experience for our guests but also minimize the risk of accidents or malfunctions,
reflecting our dedication to responsible and professional charter operations.
Proposed Fleet
Boat Length Type Motor Year Our Capacity USCG Rated
Capacity
2018 Sweetwater
240
24’ Tritoon 2025 12 persons 14 persons
(1974)
2012 Southbay
270
27’ Tritoon 2023 15 persons 17 persons
(3130)
2011 Southbay
290
29’ Tritoon 2025 17 persons 20 persons
(2790)
40
2010 Aloha 290 29’ Tritoon 2023 15 persons 20 persons
(2820)
2006 Cruisers
Yacht 370
37’ Fiberglass 2006 (maintained
very well and low
hours)
15 person (20 persons)
(Yacht
Certified)
While the 2006 Cruisers Yacht 370 is not as new as some of our other vessels and does not
have new motors, it offers important added redundancy through twin engines, as well as a new
bow thruster that allows the vessel to maneuver smoothly and turn sideways when needed,
making docking and navigating tight areas significantly easier. Furthermore, the motor,
generator and AC have low hours and are maintained very well.
Safety Features and Required Equipment
All vessels have all required safety items at all times:
● More than enough life vests for everyone on board including children
● Fire extinguishers
● PFD throwables (all vessels have at least 2-3 for added safety)
● Whistle/horn
● Navigation lights (and backup battery powered navigation lights for added safety)
● ECOS (engine cut off system)
● First aid kit (not required by law, but an important safety item)
● Heavy duty, oversized anchor (not required by law, but an important safety item)
Preventive Maintenance and Inspection Schedules
All charter vessels are inspected weekly for onboard items:
● Door latches
● Hinges
● Second deck ladder non slip tape
● Cleats and attachment points
● Dock lines condition (we replace these almost yearly, uv light wears them down)
● Spare dock lines
● Navigation lighting
● Interior lighting
● Fender condition and quantity
● Bilge pumps
● Battery condition and secure mounting
● Battery switch operation
41
● Wiring integrity and corrosion
● Adult and child life vests
● All required safety equipment (outlined in “Safety Features and Required Equipment"
section above)
● Required documentation onboard (insurance, registration, COI)
● Anchoring system (anchor, line, chain and shackles)
● Lily pads (tears, other wear) these often need to be replaced yearly
● Bluetooth audio systems
● Boarding ladders
● Furniture mounting and condition
● Bimini top frame and canvas condition
● Trash supplies
● Cleanliness and trip readiness
● Fuel gauge operation
● Engine oil level and condition
● Propeller condition (nicks, bends)
Every two weeks, vessels are removed from the water to inspect exterior components as well as
motor functionality items:
● Pontoon logs and hull exterior (dents, cracks, corrosion)
● Ladders, rails, and siding
● Transom integrity and motor mounts
● Deck condition
● Rub rails and corner caps
● Registration numbers and decals
● Waterslide structure and water system
● Anodes
● Welds
● Cables
● Tow points or ski eye integrity
● Hydraulic systems
● Fasteners (bolts/screws/hose clamps)
● Cooling systems and impeller
● Fuel lines, clamps, and connections (we replace every four years)
● Fuel primer bulb (we replace every couple years)
● Fuel tank securement, cap and ventilation hoses, fill hose condition
● Steering response and play
● Throttle and shift smoothness
● All other important gauges (RPM, temp, depth)
● Hour meter (important for maintenance intervals)
● Trim and tilt operation
● Any other areas requiring attention that are noticed during inspection
42
Because we are very familiar with these components and have worked on all of them at some
point in the past, the inspection process is thorough but can be completed efficiently.
It is also important to note that a key part of our maintenance program relies on captains
promptly reporting anything that seems off or requires attention. This expectation is strongly
emphasized and is a core component of new captain training. If any issues are identified, the
boats can be transported back to our shop within minutes to promptly complete necessary
repairs or adjustments. We are proud to say that this past summer 2025 we did not have a
single boat break down after completing 700+ trips between our different locations.
All routine maintenance and inspections are performed in strict accordance with the
manufacturer’s recommended intervals and procedures. We adhere rigorously to these
guidelines to ensure every engine and system operates safely, efficiently, and reliably
throughout the season. This includes scheduled engine oil and filter changes, lower unit gear
lube replacement, impeller service, spark plug replacement and fuel filter changes. It is also
important to check/replace the seals on all of these components to ensure there are no leaks
and that each system is properly protected against water and air intrusion which could lead to
mechanical failure.
Fleet Replacement or Upgrade Plans
We are very selective about the vessels we include in our fleet. We are pleased with our current
fleet, as we install brand-new motors on all of our tritoons every few years, which helps
minimize—often eliminating—breakdowns and gives both customers and captains greater
confidence in the vessels. While some companies purchase entirely new boats every few years,
we have not seen this approach prove sustainable, as depreciation from high usage and wear
quickly erodes profitability. We have found that replacing the motors every few years—rather
than replacing the entire vessel—has been an ideal middle ground between reliability and
long-term sustainability. Because our hulls have several years of service, we place a strong
emphasis on proper maintenance. With consistent upkeep and proactive attention to potential
issues, these vessels continue to perform at a high level and are well suited for charter
operations. It is also worth noting that our hulls remain in better condition over longer periods of
time because we operate a captain-led charter model. Since customers are not operating the
vessels themselves, there is significantly less accidental wear and damage compared to a
traditional rental model. Our proposed vessels can be seen below in Exhibit A. With that said,
we do replace vessels when they no longer meet our standards; however, with proper
maintenance, these vessels are designed to provide reliable service for many years.
43
VII. Financial Proposal and Stability
Proposed Concession Fee Structure
In addition to the tens of thousands of dollars that will flow into the park through parking fees
(estimated $20,000 annually from our customers alone), we propose to also pay an annual fee
for each boat we operate at your location. We are thinking $1000 per vessel (we would intend to
operate 5 vessels), to be paid annually at the beginning of the year in January. With that being
said, we are open to discussions. We believe an annual number makes more sense than
revenue sharing as it is more straightforward and much simpler for both parties with no
possibility whatsoever for misunderstandings.
We also believe our customers are a positive fit for the park. Most visit specifically for the boat
rental and depart afterward, resulting in minimal use of park facilities while still paying the full
park entrance fee. This allows park resources to remain available for other visitors while
continuing to generate meaningful entrance fee revenue for the City.
Financial Capacity to Sustain Operations for the Full Contract Term | Overall Financial Stability
and Business Viability
We appreciate the City’s consideration of an operator’s financial capacity and overall business
stability as part of this permitting process. This focus aligns with our own commitment to
responsible management, operational continuity, and being a dependable partner to the City
and the public. With my background as an actuary for many years and all the financial actuarial
exams and schooling that have come with that, I believe that I have been prepared well for
building and maintaining a financially healthy business.
A primary indicator of this stability is our deliberate commitment to maintaining minimal or no
debt. Across our different locations, we will enter the 2026 season with nine boats and two
business-related trucks, all of which are completely debt free. This also includes the new motors
we have installed on all seven of our outboard-style vessels. This is something we take great
pride in, as we believe it demonstrates a disciplined approach to financial management and a
clear commitment to long-term operational sustainability. Although leveraging more debt may
have allowed for quicker expansion, we determined that maintaining minimal debt and growing
sustainably was the safer and more responsible approach for our business. Furthermore, after
seeing several operators come and go, it has become clear that some underestimate the true
costs of operation, leading to overleveraging when acquiring vessels. The high utilization,
routine wear, and incidental damage associated with rental fleets can quickly accelerate
depreciation and result in unfavorable equity positions.
Our commitment to business stability is further reflected in our practice of maintaining strong
cash reserves through disciplined and conservative saving. Conservatively managed savings
44
provide an important safety net, offering peace of mind and helping ensure the business can
withstand difficult economic periods.
Our continued operation throughout the COVID-19 pandemic further outlines the strength and
resilience of our business. In an environment marked by rapidly changing regulations and
unpredictable demand, we remained operational and consistent. This ability to adjust while
maintaining financial and operational integrity demonstrates that we would be a reliable
long-term partner capable of managing both routine and challenging times.
In conclusion, our experience, financial discipline, and long-term approach to risk management
collectively demonstrate a stable and responsible operation well suited for continued permitting.
By prioritizing debt-free assets, maintaining strong cash reserves, and successfully navigating
periods of economic uncertainty such as the COVID-19 pandemic, we have built a resilient
business designed for sustainability rather than short-term growth. We believe these practices
position us as a dependable, well-prepared partner to the City and the public, capable of
meeting our obligations and operating responsibly for many years to come.
Final Words
Thank you to the City of The Colony for your time, consideration, and the opportunity to be
evaluated as a potential boat rental concessionaire. We would be happy to partner with the City
and are committed to operating safely, responsibly, and in a way that reflects positively on the
park and the community. If you have any questions or would like clarification on any part of this
proposal, please feel free to contact us by phone or email at any time.
*See exhibits below*
45
Exhibit A: Proposed Fleet Images (5)
2018 Sweetwater 240 (2025 Motor)
2012 Southbay 270 (2023 Motor)
46
2011 Southbay 290 (2025 Motor)
2010 Aloha 290 (2023 Motor)
47
2006 Cruisers Yacht 370
Exhibit B: Office Manager Business Information Example
48
CITY OF THE COLONY, TEXAS
RESOLUTION NO. 2026 - _____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF THE
COLONY, TEXAS, AUTHORIZING THE CITY MANAGER TO AWARD A
CONCESSIONAIRE AGREEMENT TO DFW BOAT CHARTERS FOR
RECREATIONAL BOATING SERVICES; AND PROVIDING AN
EFFECTIVE DATE
WHEREAS, the City Council of the City of The Colony, Texas hereby
authorizes the City Manager to execute a concessionaire agreement with DFW Boat
Charters for recreational boating services; and
WHEREAS, with this agreement, the City of The Colony is agreeing to have
DFW Boat Charters provide these services to the patrons at Stewart Creek Park.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF THE COLONY, TEXAS, THAT:
Section 1. The Agreement, having been reviewed by the City Council of
the City of The Colony, Texas, and found to be acceptable and in the best interest of the
City and its citizens, be, and the same is hereby, in all things approved.
Section 2. The City Manager is hereby authorized to execute the
agreement on behalf of the City of The Colony, Texas, with the terms and conditions
stated therein.
Section 3. This Resolution shall take effect immediately from and after its
adoption and it is so resolved.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY
OF THE COLONY, TEXAS THIS 17th DAY OF MARCH 2026.
____________________________
Richard Boyer, Mayor
City of The Colony, Texas
ATTEST:
______________________________________
Tina Stewart, TRMC, CMC, City Secretary
APPROVED AS TO FORM:
49
____________________________
Jeffrey L. Moore, City Attorney
50
Agenda Item No: 5.1
CITY COUNCIL Agenda Item Report
Meeting Date: March 17, 2026
Submitted By: Ana Alvarado
Submitting Department: Finance
Item Type: Presentation
Agenda Section: regular agenda items
Suggested Action:
Receive the City's Annual Comprehensive Financial Report (ACFR) and Federal Single Audit Report for
the fiscal year ending September 30, 2025. (Bredehoeft)
Background:
Eide Bailly, LLP, an independent audit firm, has audited the City's financial statements for the fiscal year
ending September 30, 2025, and has issued an unmodified or "clean" opinion. Additionally, they have
audited the City's compliance with requirements identified as subject to audit in the OMB Compliance
Supplement for the fiscal year ending September 30, 2025, and has issued an unmodified or "clean"
opinion. Kevin Randolph of Eide Bailly will provide highlights and comments on the ACFR, the Single
Audit Report, and the audit process.
Attachments:
City of The Colony 2025 Final ACFR.pdf
City of The Colony 2025 Final Single Audit Report.pdf
51
The Colony, Texas
Annual Comprehensive Financial Report
Fiscal Year 2024/2025
STEWART
CREEK
PARK
PUBLIC
SAFETY
HOTELS
It's A Golden Jubilee
Celebrating 50 years
GRANDSCAPE
SPORTS
DINING
Photo Credit: Roy F. Martin, Jr.
52
Annual Comprehensive Financial Report of the
City of The Colony, Texas
The Colony, Texas
For the Year Ended September 30, 2025
As Prepared by The Finance Department
53
City of The Colony, Texas
Table of Contents
September 30, 2025
INTRODUCTORY SECTION
Letter of Transmittal ................................................................................................................................................. i
Executive Organizational Chart ............................................................................................................................... iv
City Staff ................................................................................................................................................................... v
FINANCIAL SECTION
Independent Auditor’s Report ..................................................................................................................................... 2
MANAGEMENT’S DISCUSSION AND ANALYSIS ........................................................................................................ 5
BASIC FINANCIAL STATEMENTS
Statement of Net Position (Exhibit A-1) ............................................................................................................. 13
Statement of Activities (Exhibit A-2) .................................................................................................................. 14
Balance Sheet – Governmental Funds (Exhibit A-3) .......................................................................................... 16
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position (Exhibit A-4) . 17
Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds (Exhibit A-5) ... 18
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental
Funds to the Statement of Activities (Exhibit A-6) ............................................................................................. 19
Statement of Net Position – Proprietary Funds (Exhibit A-7) ............................................................................ 20
Statement of Revenues, Expenses and Changes in Fund Net Position – Proprietary Funds (Exhibit A-8) ........ 22
Statement of Cash Flows – Proprietary Funds (Exhibit A-9) .............................................................................. 23
Statement of Net Position – Discretely Presented Component Units (Exhibit A-10) ........................................ 25
Statement of Activities – Discretely Presented Component Units (Exhibit A-11) ............................................. 26
Notes to Financial Statements ............................................................................................................................... 28
REQUIRED SUPPLEMENTARY INFORMATION
Budgetary Comparison Schedule – General Fund (Exhibit B-1) ............................................................................. 60
Schedule of Changes in Net Pension Liability and Related Ratios – Texas Municipal Retirement System (Exhibit
B-2) ......................................................................................................................................................................... 61
Schedule of Employer Contributions – Texas Municipal Retirement System (Exhibit B-3) ................................... 62
Schedule of Changes in Total OPEB Liability and Related Ratios – Supplemental Death Benefits Plan (Exhibit B-
4) ............................................................................................................................................................................ 63
Notes to Required Supplementary Information .................................................................................................... 64
COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES
Budgetary Comparison Schedule – Debt Service Fund (Exhibit C-1) ..................................................................... 68
Non-Major Governmental Funds ........................................................................................................................... 69
Combining Balance Sheet – Nonmajor Governmental Funds (Exhibit C-2) ....................................................... 70
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Governmental
Funds (Exhibit C-3) ............................................................................................................................................. 72
Budgetary Comparison Schedule – Lake Parks Fund (Exhibit C-4) .................................................................... 74
54
Budgetary Comparison Schedule – Special Events Fund (Exhibit C-5) .............................................................. 75
Budgetary Comparison Schedule – Hotel/Motel Taxes Fund (Exhibit C-6) ....................................................... 76
Budgetary Comparison Schedule – Storm Water Utility Fund (Exhibit C-7) ...................................................... 77
Budgetary Comparison Schedule – Public Safety Fund (Exhibit C-8) ................................................................. 78
DISCRETELY PRESENTED COMPONENT UNITS
Combining Balance Sheet – Component Units (Exhibit F-1) .............................................................................. 80
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position – Component
Units (Exhibit F-2) ............................................................................................................................................... 81
Statement of Revenues, Expenditures, and Changes in Fund Balance – Component Units (Exhibit F-3) ......... 82
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balance of Governmental
Funds to the Statement of Activities – Component Units (Exhibit F-4) ............................................................. 83
STATISTICAL SECTION
Net Position by Component (Accrual Basis of Accounting) ................................................................................... 86
Changes in Net Position (Accrual Basis of Accounting).......................................................................................... 87
Fund Balances, Governmental Funds (Modified Accrual Basis of Accounting) ..................................................... 89
Changes in Fund Balances, Governmental Funds (Modified Accrual Basis of Accounting) ................................... 90
Assessed Value and Estimated Actual Value of Taxable Property ......................................................................... 92
Direct and Overlapping Property Tax Rates ........................................................................................................... 93
Principal Tax Payers ............................................................................................................................................... 94
Ad Valorem Tax Levies and Collections ................................................................................................................. 95
Ratio of Outstanding Debt by Type ........................................................................................................................ 96
Ratio of General Bonded Debt Outstanding .......................................................................................................... 97
Legal Debt Margin Information .............................................................................................................................. 98
Direct and Overlapping Governmental Activities Debt ......................................................................................... 99
Pledged Revenue Coverage ................................................................................................................................. 100
Demographic and Economic Statistics ................................................................................................................. 101
Principal Employers .............................................................................................................................................. 102
Full-Time Equivalent City Government Employees by Function/Program .......................................................... 1 03
Operating Indicators by Function/Program ......................................................................................................... 104
Capital Asset Statistics by Function/Program ...................................................................................................... 105
55
INTRODUCTORY SECTION
56
57
i
March 9th, 2026
The Honorable Mayor, Members of the City Council and Citizens of the City of The Colony, Texas
The Finance Department of the City of The Colony is pleased to submit the Annual Comprehensive
Financial Report (ACFR) of the City of The Colony, Texas, for the fiscal year ended September 30, 2025.
This report provides 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.
One item to note this year is a restatement of the beginning net position due to the adoption of
Governmental Accounting Standards Board (GASB) Statement No. 101, Compensated Absences, as
described in the MD&A and Note 13 of the Notes to the Financial Statements.
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, Eide Bailly L.L.P.,
whose report is included herein.
POPULATION
The City's population has grown steadily since the early 2000's and is currently estimated at 47,308. The
remaining developable residential land predominantly resides at either the Tribute (formerly known as
Wynnewood Peninsula) and Austin Ranch just south of SH121. The City's 2025 Ad Valorem tax base
increased from the prior year by a little over 3% to $7.48 billion.
Sales tax revenues increased by $1.51 million, or 3.85%, from the previous year due to economic growth
and development as well as inflation boosting taxable prices. Of the total sales tax revenue received by
the City, roughly half is recorded in the City’s General Fund. These sales tax revenues represent
approximately 25.6% of the General Fund’s total revenue.
58
ii
Water and sewer revenues increased by about $0.5 million to $29.9 million due primarily to holding rates
flat and consistent water usage compared to prior year.
Ad Valorem Tax Rate
The ad valorem tax rate was reduced from $0.6400 to $0.6350 per $100 valuation for the current fiscal
year. 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 decreased by $10.1 million from the prior fiscal year to $27.1 million or 106
operating days.
Fund Balance - Other Governmental Funds
All other governmental fund reserves increased by $48.2 million during the fiscal year to $68.1 million due
mainly to the receipt of debt proceeds into the Capital Projects Fund.
PROSPECT FOR THE FUTURE
The Colony's prospects for the future are promising and very optimistic. The City’s major economic
drivers are:
The Nebraska Furniture Mart TIRZ that was established in 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.
In June 2020, Scheels opened the largest sporting goods store in the World offering 85 specialty shops.
Numerous restaurants and multiple hotels have also located in the Zone. PopStroke, 151 Coffee, Fritz’s
Adventures, Roam, Worldsprings and COSM opened in the past few years. Lava Cantina and Rock and
Brews have since closed but those spaces have already been leased to new tenants. White Castle,
residential towers, and Mavericks Dance Hall have also opened or are in development.
There is potential for a hotel and convention center in addition to some small surrounding retail in the
center of the Grandscape site. Plans are in discussions, but no final decisions have been made to date.
On the north side of SH121, in The Colony and across from Grandscape, Rooms To-Go, Mattress Firm,
and Floor and Decor have remained for years now and while Abuelos has shut its doors; Primal, a prime
steak establishment has opened in the same center. Small portions of developable commercial property
remain north of 121 and much of those have plans in the works.
The Tribute, the only remaining sizeable single-family residential development in the City, continues to
build on its lots. Housing permits have remained strong for the past couple of years and are only slightly
slowing down as the area continues to fill out.
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
59
iii
service needs and financing available. StaƯ helps Council with the challenge of prioritizing and providing
eƯicient and eƯective services to the community with current and future available funds.
As a combined eƯort, the City Manager's OƯice, Finance Director, and all departments monitor revenues
and expenditures throughout the year. Appropriate actions are taken to control expenditures and to adjust
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 least 60 operating days in unassigned fund balance for the General
Fund and unrestricted net position for the Water and Sewer Fund.
AWARDS
The Government Finance OƯicers 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, 2023. (This was the 33rd
consecutive year that The Colony has achieved this prestigious award.) The City submitted the annual
comprehensive financial report for the fiscal year ended September 30, 2024 for GFOA certification and is
awaiting the results.
To be awarded a Certificate of Achievement, a government must publish an easily readable and eƯiciently
organized annual comprehensive financial report. This report must satisfy both generally accepted
accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current 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, 2024. The City has received the award
annually since the budget year beginning on October 1, 1993. 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 eƯicient
and dedicated services of the entire staƯ 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,
_______________________________ __________________________________
Troy Powell, City Manager Tim Miller, Assistant City Manager
60
iv
Organizational Chart
Citizens of The
Colony
City Council
Boards /
Commissions City Attorney Municipal
Court Judge City Secretary City Manager
Executive
Director of
Development
HR Director Library Director Animal Service
Director
Employee
Engagement
Director
Deputy City
Manager
IT Director
Director of Mrkt
& Comm
Community
Services
Director
Facilities
Director
Emergency
Comm Director
Court
Administrator
Asst City Mngr
of Admin
Finance
Director
Engineering
Director
Public Works
Director
Customer
Service
Director
Deputy City
Manager
Police Chief
Fire Chief /
Public Safety
Director
Executive
Business
Liaison
Community
Image Director
Planning
Director
61
v
City Staff
General Administration Troy C. Powell, City Manager
Animal Services Mark Cooper, Animal Services Director
City Secretary Tina Stewart, City Secretary
Community Image Iris Browder, Community Image Director
Convention and Visitors Bureau Mariko Lanicek, Director of Marketing & Communications
Economic Development Keri Samford, Executive Director of Development
Engineering Ron Hartline, Engineering Director
Facilities Maintenance Brian Walker, Facilities Director
Finance Ryan Bredehoeft, Finance Director
Fire Department Scott Thompson, Fire Chief / Director of Public Safety
General Administration Tim Miller, Assistant City Manager of Administration
General Administration Joe Perez, Deputy City Manager
General Administration Brant Shallenburger, Deputy City Manager
Human Resources Rodney Wallican, Human Resources Director
Information Technology Chris Cuellar, IT Director
Library Megan Charters, Library Director
Parks & Recreation Jackie Kopsa, Community Services Director
Planning Isaac Williams, Planning Director
Police Phillip Foxall, Police Chief
Public Safety Dispatch Toni Knier, Emergency Communications Director
Public Works James Whitt, Director of Public Works
Utility Administration Molly Owczar, Director of Customer Services
62
63
1
FINANCIAL SECTION
64
eidebailly.com
400 Pine St., Ste. 600 • Abilene, TX 79601-5190 • T 325.672.4000 • TF 800.588.2525 • F 325.672.7049 • EOE
2
Independent Auditor’s Report
To the Mayor and
Members of the City Council
City of The Colony, Texas
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, 2025, 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 referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, the aggregate discretely
presented component units, each major fund, and the aggregate remaining fund information of the City of The
Colony, Texas, as of September 30, 2025, 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 (Government Auditing Standards). 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 Notes 1 and 13 to the financial statements, the City has adopted the provisions of Governmental
Accounting Standards Board (GASB) Statement No. 101, Compensated Absences for the year ended September 30,
2025. Accordingly, a restatement has been made to the governmental activities, business-type activities,
aggregate discretely presented component units, and water and sewer fund net position as of October 1, 2024 to
restate beginning net position. Our opinions are not modified with respect to this matter.
Responsibilities of Management for the Financial Statements
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.
65
3
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.
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 and Government Auditing Standards 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 and Government Auditing Standards, 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 Management’s
Discussion and Analysis, Budgetary Comparison Schedule – General Fund, Schedule of Changes in Net Pension
Liability and Related Ratios – Texas Municipal Retirement System, Schedule of Employer Contributions – Texas
Municipal Retirement System, Schedule of Changes in Total OPEB Liability and Related Ratios – Supplemental
Death Benefits Plan 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 GAAS, 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.
66
4
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 combining and individual nonmajor fund financial statements
and schedules as listed in the table of contents are presented for purposes of additional analysis and are not a
required part of the basic financial statements. Such 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. The 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 GAAS. In our opinion,
the combining and individual nonmajor fund financial statements and schedules are fairly stated, in all material
respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information
comprises the introductory and statistical sections but does not include the basic financial statements and our
auditor's report thereon. Our opinions on the basic 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 basic 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 March 9, 2026 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 the City’s 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.
Abilene, Texas
March 9, 2026
67
CITY OF THE COLONY, TEXAS
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2025
5
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, 2025. 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 an 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 $391.16 million. Of this amount
$43.65 million (unrestricted net position) may be used to meet the government’s ongoing
obligations to citizens and creditors.
• The government’s total net position decreased by $1.47 million which was due primarily to a
decrease of governmental activity operations.
• At the end of the current fiscal year, the City’s governmental funds reported combined ending
fund balances of $95.12 million, an increase of $38.04 million. The general fund reported a
decrease in fund balance of $10.12 million due to a $9.98 million disbursement relating to Tax
Increment Reinvestment Zone (TIRZ) No. 2. The capital projects fund had an increase in fund
balance of $51.16 million due primarily to the receipt of debt proceeds.
• Of the fund balances in the governmental funds, $26.27 million is available for spending at the
government’s discretion (unassigned fund balance). This amount represents 28% of total general
fund expenditures.
• The City adopted GASB Statement No. 101, Compensated Absences, in the current fiscal year.
As a result, beginning net position was restated. Therefore, the prior-period information is not
consistent with current-period information as a result of this change in accounting principle. For
additional information, see Note 13 of the Notes to the Financial Statements section of the Basic
Financial Statements section of this report.
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:
• Government-wide financial statements
• Fund financial statements
• Notes to the financial statements
The report also contains other supplementary information in addition to the basic financial statements.
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).
68
CITY OF THE COLONY, TEXAS
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2025
6
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, public
works, 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, public works, and culture and
recreation. 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.
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:
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 governmental funds.
Information is presented separately in the governmental funds balance sheet and in the governmental
69
CITY OF THE COLONY, TEXAS
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2025
7
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 budgets
for its General Fund, Debt Service Fund, Lake Parks Fund, Special Events Fund, Hotel/Motel Taxes Fund,
Public Safety Fund, and Storm Water Utility Fund. The budgetary comparison schedules have been
provided for these funds to demonstrate compliance with the budgets.
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.
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 $391.16 million.
The largest portion of the City’s net position (83.6%) 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 (5.2%) 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, $43.65 million, or 11.2%, may be used to meet the government’s
ongoing obligations to citizens and creditors.
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.
70
CITY OF THE COLONY, TEXAS
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2025
8
The City’s net position decreased by $1.47 million. Total assets increased by $73.59 million, which
consists of a $25.29 million increase to capital assets and a $48.30 million increase to current and other
assets.
Governmental activities - Governmental activities decreased the City’s net position by $11.92 million
compared to prior year due primarily to the reimbursement, in the current year, of prior years’ Tax
Increment Reinvestment Zone (TIRZ) project costs incurred by developers.
Business-type activities - Business-type activities increased the City’s net position by $10.45 million,
which is slightly less than the prior year’s increase to net position of $11.85 million.
2025 2024 2025 2024 2025 2024
Assets
Current and other assets 121,391,472$ 82,467,371$ 43,319,498$ 33,942,522$ 164,710,970$ 116,409,893$
Capital assets 304,891,503 282,712,180 158,556,863 155,447,395 463,448,366 438,159,575
Total assets 426,282,975 365,179,551 201,876,361 189,389,917 628,159,336 554,569,468
Deferred outflows of resources
Deferred charge on refunding 36,073 80,058 44,727 162,437 80,800 242,495
Deferred outflows - pension 5,319,734 6,847,677 863,204 1,099,750 6,182,938 7,947,427
Deferred outflows - OPEB 119,276 175,229 19,354 28,143 138,630 203,372
Total deferred outflows of resources 5,475,083 7,102,964 927,285 1,290,330 6,402,368 8,393,294
Liabilities
Long-term liabilities 153,367,811 86,499,066 59,175,612 57,332,045 212,543,423 143,831,111
Other liabilities 21,473,049 19,755,844 2,151,634 2,705,141 23,624,683 22,460,985
Total liabilities 174,840,860 106,254,910 61,327,246 60,037,186 236,168,106 166,292,096
Deferred inflows of resources
Deferred inflows - lease related 5,189,355 5,432,587 - - 5,189,355 5,432,587
Deferred inflows - pension 1,445,487 236,607 234,551 37,999 1,680,038 274,606
Deferred inflows - OPEB 313,247 348,209 50,829 55,922 364,076 404,131
Total deferred inflows of resources 6,948,089 6,017,403 285,380 93,921 7,233,469 6,111,324
Net position
Net investment in capital assets 212,965,547 211,834,115 114,245,912 108,929,168 327,211,459 320,763,283
Restricted 18,022,401 17,695,407 2,277,964 2,565,461 20,300,365 20,260,868
Unrestricted 18,981,161 30,480,680 24,667,144 19,054,511 43,648,305 49,535,191
Total net position 249,969,109$ 260,010,202$ 141,191,020$ 130,549,140$ 391,160,129$ 390,559,342$
TotalBusiness-type activitiesGovernmental activities
$-
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
Net investment in capital
assets
Restricted Unrestricted
Net Position
Governmental activities Business-type activities
71
CITY OF THE COLONY, TEXAS
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2025
9
The following chart compares expenses to program revenues, by Function, for the current fiscal year.
2025 2024 2025 2024 2025 2024
Revenues:
Program revenues
Charges for services 12,260,327$ 8,219,593$ 29,855,805$ 29,399,479$ 42,116,132$ 37,619,072$
Operating grants and contributions 5,309,476 745,364 - - 5,309,476 745,364
Capital grants and contributions 11,269,848 11,841,212 5,562,677 6,954,214 16,832,525 18,795,426
General revenues
Property taxes 45,551,241 34,615,211 - - 45,551,241 34,615,211
Sales taxes 20,245,550 9,990,559 - - 20,245,550 9,990,559
Franchise taxes 2,987,086 5,159,631 - - 2,987,086 5,159,631
Hotel occupancy tax 2,332,854 2,538,159 - - 2,332,854 2,538,159
Other taxes 926,739 925,917 - - 926,739 925,917
Investment income 4,010,660 4,504,997 2,447,584 1,740,533 6,458,244 6,245,530
Other income 3,925,239 3,356,911 - - 3,925,239 3,356,911
Total revenues 108,819,020 81,897,554 37,866,066 38,094,226 146,685,086 119,991,780
Expenses:
General government 28,526,147 18,523,136 - - 28,526,147 18,523,136
Economic development 23,534,525 - - - 23,534,525 -
Public safety 38,277,402 33,148,673 - - 38,277,402 33,148,673
Public works 13,991,191 14,521,855 - - 13,991,191 14,521,855
Culture and recreation 8,679,083 8,504,034 - - 8,679,083 8,504,034
Interest on long-term debt 5,181,255 1,447,788 - - 5,181,255 1,447,788
Water and sewer - - 29,961,104 29,933,931 29,961,104 29,933,931
Total expenses 118,189,603 76,145,486 29,961,104 29,933,931 148,150,707 106,079,417
Increase in net position before transfers (9,370,583) 5,752,068 7,904,962 8,160,295 (1,465,621) 13,912,363
Net transfers (2,547,395) (4,400,000) 2,547,395 4,400,000 - -
Change in net position (11,917,978) 1,352,068 10,452,357 12,560,295 (1,465,621) 13,912,363
Net position, beginning, as previously report 260,010,202 258,658,134 130,549,140 117,988,845 390,559,342 376,646,979
Change in accounting principle 1,876,885 - 189,523 - 2,066,408 -
Net position, beginning, as restated 261,887,087 258,658,134 130,738,663 117,988,845 392,625,750 376,646,979
Net position, ending 249,969,109$ 260,010,202$ 141,191,020$ 130,549,140$ 391,160,129$ 390,559,342$
Governmental activities Business-type activities Total
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
$45,000,000
General
government
Economic
development
Public safety Public works Culture and
recreation
Interest on
long-term debt
Water and
sewer
Expenses and Program Revenues
Expenses Program Revenues
72
CITY OF THE COLONY, TEXAS
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2025
10
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 $95.12 million, an increase of $38.04 million in comparison with the prior year. Of this ending
fund balance, $26.27 million, or approximately 28.5%, 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 or restricted or is nonspendable.
Nonspendable fund balance consisted of $0.43 million for inventories and prepaid items.
Restricted fund balance consisted of:
• $552,240 for TIRZ,
• $72 for Pandemic Response,
• $5,544,847 for debt service,
• $51,792,762 for capital projects,
• $3,889,980 for hotel/motel taxes,
• $1,648,371 for storm water utility,
• $847,450 for public safety,
• $11,128 for citizens donations, and
• $1,083,086 for Public Improvement District No. 1.
Committed fund balance consisted of:
• $2,862,636 for Lake Parks,
• $176,672 for special events, and
• $10,800 for Keep the Colony Beautiful.
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 $26.27 million. 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 28.27% of total general fund expenditures (excluding transfers to other funds).
The fund balance of the City’s General Fund decreased by $10.12 million during the current fiscal year
due to an excess of expenditures over revenue.
The Debt Service Fund has a total fund balance of $5.54 million, all of which is restricted for the payment
of debt service. The decrease in fund balance during the current year in the Debt Service Fund was $1.58
million. The City has a dedicated property tax for general debt service. The property tax produced debt
service fund revenues of $10.42 million in the current fiscal year while debt service payments for
principal and interest on debt were $10.95 million.
The Capital Projects Fund has a total fund balance of $51.97 million, with the fund balance restricted for
future expenditures of currently approved capital items. The $51.16 million increase in fund balance
during the year was attributable to the receipt of debt proceeds.
73
CITY OF THE COLONY, TEXAS
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2025
11
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 $29.86
million, an increase from prior year’s amount of $29.40 million due to holding rates flat and consistent
water usage compared to prior year. Operating expenses totaled $25.60 million, a decrease from prior
year’s amount of $28.07 million due to a decrease in supplies cost.
General Fund Budgetary Highlights
During the year, there was an increase in appropriations of $1.34 million between the original and final
budget. Overall, revenues had a $10.76 million positive variance primarily due to unbudgeted residential
sanitation revenue and unbudgeted intergovernmental transfers from the City’s component unit. There
was an unfavorable variance of $3.74 million between final budget and actual expenditures which was
primarily due capital outlay which included the initial recognition of an unbudgeted subscription-based
information technology arrangement (SBITA) for Public Safety, as well as unbudgeted intergovernmental
transfers to the City’s component unit.
Capital Assets
The City’s investment in capital assets for its governmental and business-type activities as of September
30, 2025, amounts to $463,448,366 (net of accumulated depreciation and amortization). This investment
in capital assets includes land, buildings, water and sewer system infrastructure, machinery and
equipment, park facilities, roads and right to use assets. The City’s total depreciation/amortization
expense amounts to $13,057,971 for its governmental activities and $6,550,409 for its business-type
activities.
The following schedule shows capital assets net of accumulated depreciation/amortization.
Additional information on the City’s capital assets can be found in note 6 of the notes to the financial
statements.
Debt Administration
At the end of the current fiscal year, the City had total bonded debt outstanding of $174,825,000. The
entire amount represents debt backed by the full faith and credit of the City. The City also had leases
payable of $667,250, subscriptions payable of $1,380,449, and financed purchase liabilities of
$4,901,599 at fiscal year-end.
2025 2024 2025 2024 2025 2024
Land 8,400,625$ 7,999,486$ 3,273,473$ 3,273,473$ 11,674,098$ 11,272,959$
Rights-of-way 25,571,036 25,571,036 - - 25,571,036 25,571,036
Construction in progress 42,560,982 34,465,849 8,622,818 5,937,663 51,183,800 40,403,512
Buildings 29,040,236 30,420,494 11,918,413 12,119,669 40,958,649 42,540,163
Improvements other than buildings 11,179,388 10,243,341 - - 11,179,388 10,243,341
Swimming pool 2,115,758 411,130 - - 2,115,758 411,130
Water system - - 62,882,771 61,180,214 62,882,771 61,180,214
Sanitary system - - 64,050,328 64,912,344 64,050,328 64,912,344
Drainage system - - 23,947 25,696 23,947 25,696
Machinery and equipment 10,611,271 7,861,887 1,758,435 1,725,410 12,369,706 9,587,297
Infrastructure 173,311,145 164,620,580 6,026,678 6,272,926 179,337,823 170,893,506
Right to use leased assets 739,474 905,953 - - 739,474 905,953
Right to use SBITA assets 1,361,588 212,424 - - 1,361,588 212,424
304,891,503$ 282,712,180$ 158,556,863$ 155,447,395$ 463,448,366$ 438,159,575$
Governmental Activities Business-Type Activities Total
74
CITY OF THE COLONY, TEXAS
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED SEPTEMBER 30, 2025
12
Additional information on the City’s long-term debt can be found in note 6 of the notes to the financial
statements.
The City’s general and revenue obligations maintain an AA+ rating, respectively from Standard & Poor’s
and an Aa2 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 Budget and Rates
Total current Ad Valorem Taxes budgeted for fiscal year 2025-2026 are approximately $42.1 million,
which is a 10% increase from the current year.
Total sales tax is projected to remain strong due to continued economic growth from commercial
construction.
Requests for Information
This financial report is designed to provide a general overview of the City’s finances. Questions
concerning any of the information provided in this report or requests for additional financial information
should be addressed to the Finance Director, The City of The Colony, 6053 Main Street, The Colony, Texas
75056.
75
The accompanying notes are an integral part of these financial statements. 13
City of The Colony, Texas
Statement of Net Position (Exhibit A-1)
September 30, 2025
Governmental Business-Type
Activities Activities Total Component Units
Assets
Cash and investments 109,337,110$ 17,290,214$ 126,627,324$ 43,219,231$
Receivables (net of allowance) 11,625,244 3,450,588 15,075,832 3,300,932
Due from other governments - - - 1,575,409
Inventories 104,454 159,918 264,372 -
Prepaid items 324,666 - 324,666 2,424,046
Restricted:
Cash and investments - 22,418,778 22,418,778 28,043,665
Capital assets:
Non-depreciable 76,532,641 11,896,291 88,428,932 28,677,089
Depreciable (net) 226,257,798 146,660,572 372,918,370 871,134
Right-to-use assets (net) 2,101,062 - 2,101,062 -
Total assets 426,282,975 201,876,361 628,159,336 108,111,506
Deferred Outflows of Resources
Deferred charge on refunding 36,073 44,727 80,800 258,227
Deferred outflows - pension 5,319,734 863,204 6,182,938 59,076
Deferred outflows - OPEB 119,276 19,354 138,630 1,324
Total deferred outflows of resources 5,475,083 927,285 6,402,368 318,627
Liabilities
Accounts payable 7,083,484 914,968 7,998,452 49,213
Accrued liabilities 1,317,258 - 1,317,258 424,331
Accrued interest payable 1,460,500 - 1,460,500 5,055,618
Retainage payable 1,070,491 - 1,070,491 -
Other liabilities 666,964 - 666,964 -
Due to other governments 1,575,409 - 1,575,409 -
Unearned revenues 8,298,943 - 8,298,943 -
Payable from restricted assets:
Accounts payable and accrued liabilities - 66,446 66,446 -
Accrued interest payable - 338,793 338,793 -
Customer meter deposits - 831,427 831,427 -
Noncurrent liabilities
Due within one year 10,261,858 5,184,608 15,446,466 5,276,689
Due in more than one year 143,105,953 53,991,004 197,096,957 178,368,443
Total liabilities 174,840,860 61,327,246 236,168,106 189,174,294
Deferred Inflows of Resources
Deferred inflows - lease related 5,189,355 - 5,189,355 -
Deferred inflows - pension 1,445,487 234,551 1,680,038 16,053
Deferred inflows - OPEB 313,247 50,829 364,076 3,479
Total deferred inflows of resources 6,948,089 285,380 7,233,469 19,532
Net Position
Net investment in capital assets 212,965,547 114,245,912 327,211,459 440,057
Restricted for capital projects 5,654,304 2,277,964 7,932,268 -
Restricted for specific programs 8,233,792 - 8,233,792 -
Restricted for debt service 4,134,305 - 4,134,305 -
Unrestricted 18,981,161 24,667,144 43,648,305 (81,203,750)
Total net position 249,969,109$ 141,191,020$ 391,160,129$ (80,763,693)$
Primary Government
76
The accompanying notes are an integral part of these financial statements. 14
City of The Colony, Texas
Statement of Activities (Exhibit A-2)
Year Ended September 30, 2025
Expenses
Charges for
Services
Operating
Grants and
Contributions
Capital Grants
and
Contributions
Primary Government
Governmental activities
General government 30,077,791$ 7,626,473$ 5,309,476$ 1,984,255$
Economic development 23,534,525 - - -
Public safety 39,113,883 1,226,523 - -
Public works 11,603,066 3,014,517 - 9,285,593
Culture and recreation 8,679,083 392,814 - -
Interest and fiscal charges on
long-term debt 5,181,255 - - -
Total governmental
activities 118,189,603 12,260,327 5,309,476 11,269,848
Business-type activities
Water and sewer 29,961,104 29,855,805 - 5,562,677
Total business-type
activities 29,961,104 29,855,805 - 5,562,677
Total primary
government 148,150,707 42,116,132 5,309,476 16,832,525
Component units
The Colony Economic
Development Corporation 7,290,216 - - -
The Colony Community
Development Corporation 8,748,587 - - -
The Colony Local
Development Corporation 8,339,680 - 12,344,444 -
Total component units 24,378,483$ -$ 12,344,444$ -$
General Revenues
Taxes
Property taxes
Sales taxes
Franchise taxes
Hotel occupancy tax
Other taxes
Investment income (loss)
Other income
Transfers
Total general revenues and transfers
Change in net position
Net position, beginning, as previously reported
Change in accounting principle (See Note 13)
Net position, beginning, as restated
Net position, ending
Program Revenue
77
The accompanying notes are an integral part of these financial statements. 15
City of The Colony, Texas
Statement of Activities (Exhibit A-2) - continued
Year Ended September 30, 2025
Governmental
Activities
Business-type
Activities Total
Component
Units
(15,157,587)$ -$ (15,157,587)$
(23,534,525) - (23,534,525)
(37,887,360) - (37,887,360)
697,044 - 697,044
(8,286,269) - (8,286,269)
(5,181,255) - (5,181,255)
(89,349,952) - (89,349,952)
- 5,457,378 5,457,378
- 5,457,378 5,457,378
(89,349,952) 5,457,378 (83,892,574)
(7,290,216)
(8,748,587)
4,004,764
(12,034,039)
45,551,241 - 45,551,241 -
20,245,550 - 20,245,550 19,719,150
2,987,086 - 2,987,086 -
2,332,854 - 2,332,854 -
926,739 - 926,739 -
4,010,660 2,447,584 6,458,244 2,455,004
3,925,239 - 3,925,239 1,565,739
(2,547,395) 2,547,395 - -
77,431,974 4,994,979 82,426,953 23,739,893
(11,917,978) 10,452,357 (1,465,621) 11,705,854
260,010,202 130,549,140 390,559,342 (92,500,205)
1,876,885 189,523 2,066,408 30,658
261,887,087 130,738,663 392,625,750 (92,469,547)
249,969,109$ 141,191,020$ 391,160,129$ (80,763,693)$
Net (Expense) Revenue and Changes in Net Position
Primary Government
78
The accompanying notes are an integral part of these financial statements. 16
City of The Colony, Texas
Balance Sheet – Governmental Funds (Exhibit A-3)
September 30, 2025
Other Total
Pandemic Debt Capital Governmental Governmental
General Response Service Projects Funds Funds
Assets
Cash and investments 27,453,178$ 8,495,312$ 5,545,341$ 57,612,289$ 10,230,990$ 109,337,110$
Receivables (net of allowance)
Property taxes 473,701 - 49,959 - - 523,660
Sales taxes 3,300,932 - - - - 3,300,932
Hotel/motel taxes - - - - 491,975 491,975
Franchise taxes 378,784 - - - - 378,784
Service accounts 409,574 - - - - 409,574
Leases 3,946,530 - - - 1,541,691 5,488,221
Miscellaneous 877,719 - - - 154,379 1,032,098
Inventories 104,454 - - - - 104,454
Prepaid items 136,295 - - 175,462 12,909 324,666
Total assets 37,081,167$ 8,495,312$ 5,595,300$ 57,787,751$ 12,431,944$ 121,391,474$
Liabilities
Accounts payable 1,920,368$ 196,297$ 495$ 4,778,117$ 188,207$ 7,083,484$
Accrued liabilities 1,298,474 - - - 18,784 1,317,258
Retainage payable - - - 1,040,690 29,801 1,070,491
Other liabilities 666,244 - - 720 - 666,964
Due to other governments 1,575,409 - - - - 1,575,409
Unearned revenue - 8,298,943 - - - 8,298,943
Total liabilities 5,460,495 8,495,240 495 5,819,527 236,792 20,012,549
Deferred Inflows of Resources
Leases 3,738,700 - - - 1,450,655 5,189,355
Unavailable property taxes 473,700 - 49,958 - - 523,658
Unavailable revenue 342,231 - - - 201,465 543,696
Total deferred inflows
of resources 4,554,631 - 49,958 - 1,652,120 6,256,709
Fund Balances
Nonspendable 240,749 - - 175,462 12,909 429,120
Restricted 552,240 72 5,544,847 51,792,762 7,480,015 65,369,936
Committed - - - - 3,050,108 3,050,108
Unassigned 26,273,052 - - - - 26,273,052
Total fund balances 27,066,041 72 5,544,847 51,968,224 10,543,032 95,122,216
Total liabilites,
deferred inflows of
resources, and
fund balances 37,081,167$ 8,495,312$ 5,595,300$ 57,787,751$ 12,431,944$ 121,391,474$
79
The accompanying notes are an integral part of these financial statements. 17
City of The Colony, Texas
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position (Exhibit A-4)
September 30, 2025
Total Fund Balances - Governmental Funds 95,122,216$
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets used in governmental activities are not current financial resources and
therefore are not reported in the governmental funds balance sheet. 304,891,501
Long-term liabilities are not due and payable in the current period and therefore are not
reported in the governmental funds. As a result, these liabilities decrease net position:
Leases payable (667,250)
SBITAs payable (1,380,449)
Bonds payable (122,073,869)
Financed purchases payable (4,901,599)
Unamortized premium on issuance of debt (9,077,318)
Accrued compensated absences (2,870,370)
Deferred charge on bond refunding is not included in the governmental funds but is
deferred and amortized in the government wide statements.36,073
Payables for interest on long-term debt obligations which are not due in the current period
are not reported in the fund financial statements but are included in the statement of
net position. This results in a decrease in net position.(1,460,500)
Included in liabilities is the recognition of the City's net pension liability in the
amount of $11,524,003, a deferred inflow of resources of $1,445,487 and a deferred
outflow of resources of $5,319,734. This results in a decrease in net position.(7,649,756)
Included in liabilities is the recognition of the City's total OPEB liability in the
amount of $872,953, a deferred inflow of resources of $313,247, and a deferred
outflow of resources of $119,276. This results in a decrease in net position.(1,066,924)
Other adjustments are necessary to convert from the modified accrual basis of
accounting to the accrual basis of accounting. Net property taxes receivable of
$523,658 and net fines, fees and court costs receivable of $543,696
were unavailable to pay for the current period expenditures and are deferred inflows
in the governmental funds but are recognized as revenue in the government wide
statements. This results in an increase in net position.1,067,354
Net Position of Governmental Activities 249,969,109$
80
The accompanying notes are an integral part of these financial statements. 18
City of The Colony, Texas
Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds (Exhibit A-5)
Year Ended September 30, 2025
Other Total
Pandemic Debt Capital Governmental Governmental
General Response Service Projects Funds Funds
Revenues
Taxes
Property 35,017,518$ -$ 10,423,272$ -$ -$ 45,440,790$
Sales 20,245,550 - - - - 20,245,550
Mixed beverage tax 926,739 - - - - 926,739
Hotel occupancy tax - - - - 2,332,854 2,332,854
Franchise 2,987,086 - - - - 2,987,086
Licenses and permits 1,634,545 - - 836,276 392,814 2,863,635
Fines and forfeitures 1,148,862 - - - 140,409 1,289,271
Charges for services 5,165,305 - - - 2,442,294 7,607,599
Gifts and contributions - - - 18,640 234 18,874
Intergovernmental 5,309,476 - - 3,500,000 - 8,809,476
Grants 90,281 1,838,954 - - 55,020 1,984,255
Investment income 3,356,437 - 546,432 - 107,791 4,010,660
Miscellaneous income 3,080,481 - - 3,010 841,748 3,925,239
Total revenues 78,962,280 1,838,954 10,969,704 4,357,926 6,313,164 102,442,028
Expenditures
Current
General government 24,016,429 - - - 942,086 24,958,515
Economic development 23,534,525 - - - - 23,534,525
Culture and recreation 4,791,887 - - - 2,888,518 7,680,405
Public works 2,356,275 - - 6,742,261 13,400 9,111,936
Public safety 34,179,120 - - - 85,823 34,264,943
Capital outlay 2,835,322 1,838,954 - 26,781,504 436,647 31,892,427
Debt service
Principal 974,235 - 7,512,794 672,773 - 9,159,802
Interest and fiscal charges 257,103 - 3,436,822 55,744 - 3,749,669
Total expenditures 92,944,896 1,838,954 10,949,616 34,252,282 4,366,474 144,352,222
Excess (Deficiency) of Revenues
over (under) Expenditures (13,982,616) - 20,088 (29,894,356) 1,946,690 (41,910,194)
Other Financing Sources (Uses)
Proceeds from par value of bonds issued - - - 73,630,000 - 73,630,000
Bond premium proceeds - - - 5,260,927 - 5,260,927
Bond issuance costs - - - (827,468) - (827,468)
Lease proceeds 41,742 - - - - 41,742
Subscription IT proceeds 1,942,391 - - - - 1,942,391
Transfers out (41,384)- (1,600,000)(206,068) (4,811,679) (6,659,131)
Transfers in 1,916,068 - - 3,195,605 1,447,458 6,559,131
Total other financing sources (uses)3,858,817 - (1,600,000) 81,052,996 (3,364,221) 79,947,592
Net Change in Fund Balance (10,123,799) - (1,579,912) 51,158,640 (1,417,531) 38,037,398
Fund balance, beginning 37,189,840 72 7,124,759 809,584 11,960,563 57,084,818
Fund balance, ending 27,066,041$ 72$ 5,544,847$ 51,968,224$ 10,543,032$ 95,122,216$
81
The accompanying notes are an integral part of these financial statements. 19
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 (Exhibit A-6)
Year Ended September 30, 2025
Net Change in Fund Balances - Total Governmental Funds 38,037,398$
Amounts reported for governmental activities in the statement of activities are different because:
Current year capital outlays are expenditures in the fund financial statements, but they
are shown as increases in capital assets in the government-wide financial statements.31,948,819
Developer contributions increase capital assets in the government-wide financial statements.5,785,593
Transfers of capital assets to business-type activities are shown as decreases in capital assets in
assets in the government-wide financial statements, but are not included in the fund financial statements.(2,447,395)
The net book value of capital assets disposed reduces net position.(49,725)
Depreciation and amortization are not recognized as an expenditure in governmental funds
since it does not require the use of current financial resources.(13,057,971)
The issuance of long-term debt provides current financial resources to governmental funds,
while the repayment of principal of long-term debt consumes the current financial
resources of governmental funds. Neither transaction, however, has any effect on net
position.
Issuance of leases (41,742)
Issuance of SBITAs (1,942,391)
Proceeds from bond issuance (78,890,927)
Bond principal repayments 7,512,791
Lease principal repayment 202,728
SBITA principal repayment 771,510
Notes payable principal repayment 672,773
Amortization of bond premium 618,534
Amortization of deferred gain on bond refunding (43,985)
(71,140,709)
Changes in long-term liabilities for compensated absences are not reported in the
governmental funds but are included in the statement of activities.(123,844)
Interest payable on long-term debt is accrued in the government-wide financial statements,
whereas in the fund financial statements, interest expenditures are reported when due.
The current year change in the interest accrual is a decrease in net position. (1,178,667)
Certain pension expenditures that are recorded in the fund financial statements must be
recorded as deferred outflows of resources. Contributions made after the measurement
date caused the change in net position to increase in the amount of $438,425. The City's
unrecognized deferred inflows and outflows for TMRS as of the measurement date
must be amortized and the City's pension expense must be recognized. These cause the
change in net position to decrease in the amount of $699,543. (261,118)
Certain OPEB expenditures that are recorded in the fund financial statements must be
recorded as deferred outflows of resources. Contributions made after the measurement
date caused the change in net position to decrease in the amount of $504. The City's
unrecognized deferred inflows and outflows for TMRS as of the measurement date
must be amortized and the City's OPEB expense must be recognized. These cause the
change in net position to decrease in the amount of $21,254. (21,758)
Various other reclassifications and eliminations are necessary to convert from the
modified accrual basis of accounting to accrual basis of accounting. These include
recognizing deferred inflows of resources as revenue, adjusting current year revenue to
include the revenue earned from current year's tax levy, and eliminating interfund
transactions. These adjustments result in an increase in net position.591,399
Change in Net Position of Governmental Activities (11,917,978)$
82
The accompanying notes are an integral part of these financial statements. 20
City of The Colony, Texas
Statement of Net Position – Proprietary Funds (Exhibit A-7)
September 30, 2025
Business-Type
Activities
Water and
Sewer Enterprise
Fund
Assets
Current assets
Cash and investments 17,290,214$
Receivables (net of allowance)
Accounts 3,447,928
Miscellaneous 2,660
Inventories 159,918
Restricted cash and investments 22,418,778
Total current assets 43,319,498
Noncurrent assets
Capital assets
Land 3,273,473
Water system and sanitary sewer system 203,640,446
Drainage system 1,684,364
Buildings 13,279,490
Machinery and equipment 6,784,904
Infrastructure 8,423,992
Construction in progress 8,622,818
Less accumulated depreciation (87,152,624)
Total capital assets, net 158,556,863
Total assets 201,876,361
Deferred Outflows of Resources
Deferred charge on refunding 44,727
Deferred outflows - pension 863,204
Deferred outflows - OPEB liability 19,354
Total deferred outflows
of resources 927,285
83
The accompanying notes are an integral part of these financial statements. 21
City of The Colony, Texas
Statement of Net Position – Proprietary Funds (Exhibit A-7) - continued
September 30, 2025
Liabilities
Current liabilities
Accounts payable and accrued liabilities 914,968
Accrued compensated absences due within one year 324,728
Current portion of total OPEB liability 3,576
Payable from restricted assets:
Accounts payable and accrued liabilities 66,446
Revenue bonds payable 4,856,304
Accrued interest payable 338,793
Customer meter deposits 831,427
Total current liabilities 7,336,242
Noncurrent liabilities
Revenue bonds payable 51,979,714
Accrued compensated absences not due within one year 3,280
Net pension liability 1,869,937
Total OPEB liability 138,073
Total noncurrent liabilities 53,991,004
Total liabilities 61,327,246
Deferred Inflows of Resources
Deferred inflows - pension 234,551
Deferred inflows - OPEB 50,829
Total deferred inflows of resources 285,380
Net Position
Net investment in capital assets 114,245,912
Restricted for construction 2,277,964
Unrestricted 24,667,144
Total net position 141,191,020$
84
The accompanying notes are an integral part of these financial statements. 22
City of The Colony, Texas
Statement of Revenues, Expenses and Changes in Fund Net Position – Proprietary Funds (Exhibit A-8)
Year Ended September 30, 2025
Water and
Sewer Enterprise
Fund
Operating Revenues
Charges for sales and services:
Water service 17,856,641$
Wastewater treatment service 9,731,892
Other fees and penalties 1,206,342
Service charges 1,019,183
Miscellaneous 41,747
Total Operating Revenues 29,855,805
Operating Expenses
Personnel services 7,980,219
Contractual services 2,456,383
Supplies 4,810,309
Maintenance 1,723,047
Water purchases 30,382
Overhead 4,498,631
Depreciation 6,550,409
Total Operating Expenses 28,049,380
Operating Income 1,806,425
Nonoperating Revenues (Expenses)
Investment income 2,447,584
Interest and fiscal charges (1,911,724)
Total Nonoperating (Expenses) Revenues 535,860
Income Before Contributions
and Transfers 2,342,285
Contributions and Transfers
Capital contributions 4,794,101
Development fees 768,576
Transfers in 2,547,395
Total Contributions and Transfers 8,110,072
Change in net position 10,452,357
Net position, beginning, as previously reported 130,549,140
Change in accounting principle (See Note 13) 189,523
Net position, beginning, as restated 130,738,663
Net position, ending 141,191,020$
Business-Type
Activities
85
The accompanying notes are an integral part of these financial statements. 23
City of The Colony, Texas
Statement of Cash Flows – Proprietary Funds (Exhibit A-9)
Year Ended September 30, 2025
Business-Type
Activities
Water and
Sewer Enterprise
Fund
Cash Flows from Operating Activities
Receipts from customers 29,738,581$
Payments to or on behalf of employees (7,892,409)
Payments to suppliers (14,198,068)
Net Cash Provided by Operating Activities 7,648,104
Cash Flows from Noncapital Financing Activities
Transfers in 100,000
Net Cash Provided by Noncapital Financing Activities 100,000
Cash Flows from Capital and Related Financing Activities
Acquisition of capital assets (2,418,381)
Issuance of bonds 7,546,089
Principal paid on bonds (4,742,209)
Interest paid on bonds (2,130,440)
Development fees 768,576
Net Cash Used by Capital and Related Financing Activities (976,365)
Cash Flows from Investing Activities
Interest received 2,458,525
Net Cash Provided by Investing Activities 2,458,525
Net Change in Cash and Cash Equivalents 9,230,264
Cash and Cash Equivalents, Beginning 30,478,728
Cash and Cash Equivalents, Ending 39,708,992$
86
The accompanying notes are an integral part of these financial statements. 24
City of The Colony, Texas
Statement of Cash Flows – Proprietary Funds (Exhibit A-9)
Year Ended September 30, 2025
Business-Type
Activities
Water and
Sewer Enterprise
Fund
Reconciliation of Operating Income to Net
Cash Provided by Operating Activities
Operating income 1,806,425$
Adjustments to reconcile operating income to net cash
provided by operating activities
Depreciation and amortization 6,550,409
(Increase) decrease in accounts receivable (75,987)
(Increase) decrease in inventories (82,902)
(Increase) decrease in prepaid items 1,236
Increase (decrease) in accounts payable (664,096)
Increase (decrease) in customer deposits (41,237)
Increase (decrease) in accrued liabilities 154,256
Net Cash Provided by Operating Activities 7,648,104$
Noncash Investing and Financing Activities
Infrastructure contributed by developers 4,794,101$
Capital assets contributed from governmental activities 2,447,395
87
The accompanying notes are an integral part of these financial statements. 25
City of The Colony, Texas
Statement of Net Position – Discretely Presented Component Units (Exhibit A-10)
September 30, 2025
Total
The Colony The Colony The Colony Discretely
Economic Community Local Presented
Development Development Development Component
Corporation Corporation Corporation Units
Assets
Cash and investments 24,955,421$ 10,994,432$ 7,269,378$ 43,219,231$
Receivables (net of allowance)
Sales taxes 1,650,466 1,650,466 - 3,300,932
Prepaid items - - 2,424,046 2,424,046
Restricted cash and investments 8,411,296 8,411,079 11,221,290 28,043,665
Due from other governments - - 1,575,409 1,575,409
Capital assets
Non-depreciable 6,355,178 - 22,321,911 28,677,089
Depreciable (net) 871,134 - - 871,134
Total assets 42,243,495 21,055,977 44,812,034 108,111,506
Deferred Outflows of Resources
Deferred outflows - pension 59,076 - - 59,076
Deferred outflows - OPEB 1,324 - - 1,324
Deferred charge on refunding - - 258,227 258,227
Total deferred outflows of resources 60,400 - 258,227 318,627
Liabilities
Accounts payable 44,065 5,148 - 49,213
Accrued liabilities 219,187 205,144 - 424,331
Accrued interest payable 975,559 958,588 3,121,471 5,055,618
Non-current liabilities
Due within one year 1,101,689 595,000 3,580,000 5,276,689
Due in more than one year 28,028,385 24,738,166 125,464,224 178,230,775
Net pension liability 127,974 - - 127,974
Total OPEB liability 9,694 - - 9,694
Total liabilities 30,506,553 26,502,046 132,165,695 189,174,294
Deferred Inflows of Resources
Deferred inflows - pension 16,053 - - 16,053
Deferred inflows - OPEB 3,479 - - 3,479
Total deferred inflows of resources 19,532 - - 19,532
Net Position
Net investment in capital assets (21,881,854) - 22,321,911 440,057
Unrestricted 33,659,664 (5,446,069) (109,417,345) (81,203,750)
Total net position 11,777,810$ (5,446,069)$ (87,095,434)$ (80,763,693)$
88
The accompanying notes are an integral part of these financial statements. 26
City of The Colony, Texas
Statement of Activities – Discretely Presented Component Units (Exhibit A-11)
Year Ended September 30, 2025
Expenses
Charges for
Services
Operating
Grants and
Contributions
Capital Grants
and
Contributions
Component Units
The Colony Economic
Development Corporation 7,290,216$ -$ -$ -$
The Colony Community
Development Corporation 8,748,587 - - -
The Colony Local
Development Corporation 8,339,680 - 12,344,444 -
Total Component Units 24,378,483 - 12,344,444 -
General Revenues
Taxes
Sales taxes
Investment income
Other income
Total general revenues
Change in net position
Net position, beginning, as previously reported
Change in accounting principle (Note 13)
Net position, beginning, as restated
Net position, ending
Program Revenue
89
The accompanying notes are an integral part of these financial statements. 27
City of The Colony, Texas
Statement of Net Activities – Discretely Presented Component Units (Exhibit A-11) - continued
Year Ended September 30, 2025
The Colony
Economic
Development
Corporation
The Colony
Community
Development
Corporation
The Colony Local
Development
Corporation Total
(7,290,216)$ -$ -$ (7,290,216)$
- (8,748,587) - (8,748,587)
- - 4,004,764 4,004,764
(7,290,216) (8,748,587) 4,004,764 (12,034,039)
9,859,575 9,859,575 - 19,719,150
1,258,646 887,304 309,054 2,455,004
777,318 778,421 10,000 1,565,739
11,895,539 11,525,300 319,054 23,739,893
4,605,323 2,776,713 4,323,818 11,705,854
7,141,829 (8,222,782) (91,419,252) (92,500,205)
30,658 - - 30,658
7,172,487 (8,222,782) (91,419,252) (92,469,547)
11,777,810$ (5,446,069)$ (87,095,434)$ (80,763,693)$
Net (Expense) Revenue and Changes in Net Position
Component Units
90
28
City of The Colony, Texas
Notes to Financial Statements
September 30, 2025
Note 1 - Reporting Entity
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 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 financial statements of the City have been prepared in conformity with accounting principles applicable to
governmental units which are generally accepted in the United States of America. The Governmental Accounting Standards
Board (“GASB”) is the accepted standard setting body for establishing governmental accounting and financial reporting
principles.
The City’s basic financial statements include the accounts of all its operations. The City evaluated whether any other entity
should be included in these financial statements. The criteria for including organizations as component units within the
City’s reporting entity, as set forth in GASB Statement No. 14, “The Financial Reporting Entity,” as amended, include
whether:
the organization is legally separate (can sue and be sued in their own name),
the City holds the corporate powers of the organization,
the City appoints a voting majority of the organization’s board,
the City is able to impose its will on the organization,
the organization has the potential to impose a financial benefit/burden on the City,
there is fiscal dependency by the organization on the City.
The City also evaluated each legally separate, tax-exempt organization whose resources are used principally to provide
support to the City to determine if its omission from the reporting entity would result in the financial statements which are
misleading or incomplete. GASB Statement No. 39 requires inclusion of such an organization as a component unit when: 1)
the economic resources received or held by the organization are entirely or almost entirely for the direct benefit of the City,
its component units or its constituents; and 2) the City or its component units is entitled to, or has the ability to otherwise
access, a majority of the economic resources received or held by the organization; and 3) such economic resources are
significant to the City.
Based on the criteria above, the City has the following component units:
Discretely Presented Component Units
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
29
City of The Colony, Texas
Notes to Financial Statements
September 30, 2025
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.
Note 2 - Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report
information on all activities of the primary government and its component units. For the most part, the effect of interfund
activity has been removed from these statements, except for interfund services provided and used. Elimination of these
charges would distort the direct costs and program revenues reported for the various functions concerned. Governmental
activities, which normally are supported by taxes and intergovernmental revenue, are reported separately from business-
type activities, which rely to a significant extent on fees and charges for support. Likewise, the primary government is
reported separately from the legally separate component units for which the primary government is financially
accountable.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset
by program revenue. Direct expenses are those that are clearly identifiable with a specific function or segment. Program
revenue includes 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or
privileges provided by a given function or segment, and 2) grants and contributions that are restricted to meeting the
operational or capital requirements of a particular function or segment. Taxes and other items not properly included among
program revenue are reported instead as general revenue.
Separate financial statements are provided for governmental and proprietary funds. Major individual governmental funds
and major individual proprietary funds are reported in separate columns in the fund financial statements.
Note 3 - Measurement Focus, Basis of Accounting and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement focus and the accrual
basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses
are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as
revenue in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility
requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement focus and the
modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available.
Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to
pay liabilities of the current period. For this purpose, the City considers revenue to be available if collected within 60 days of
the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual
accounting. However, debt service expenditures, as well as expenditures related to compensated absences, claims, and
judgments, are recorded only when payment is due.
92
30
City of The Colony, Texas
Notes to Financial Statements
September 30, 2025
Property taxes, franchise taxes, sales taxes, certain charges for services and interest associated with the current fiscal
period are all considered to be susceptible to accrual and so have been recognized as revenue of the current fiscal period.
All other revenue items are considered to be measurable and available only when cash is received by the City.
The City reports the following major governmental funds:
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.
The Pandemic Response Fund is to account for revenues and expenditures related to the City of The Colony
emergency response to COVID 19 from grant and contribution funding.
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.
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.
The City reports the following major proprietary fund types:
The 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.
Additionally, the City reports the following fund types:
Nonmajor special revenue funds account for specific revenue sources that are legally restricted to expenditures for
specialized purposes or committed for special projects.
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges
provided, 2) operating grants and contributions, and 3) capital grants and contributions. Internally dedicated resources are
reported as general revenues rather than as program revenues.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses
generally result from providing services and producing and delivering goods in connection with a proprietary fund’s
principal ongoing operations. The principal operating revenues of the City’s enterprise funds are charges to customers for
sales and services. Operating expenses include cost of sales and services, administrative expenses and depreciation expense
on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and
expenses.
Implementation of GASB Statement No. 101
As of October 1, 2024, the City adopted GASB Statement No. 101, Compensated Absences. The provisions of this standard
modernize the types of leave that are considered compensated absences and provides guidance for a consistent
recognition and measurement of the compensated absence liability. The effect of the implementation of this standard on
beginning net position is disclosed in Note 13.
93
31
City of The Colony, Texas
Notes to Financial Statements
September 30, 2025
Implementation of GASB Statement No. 102
As of October 1, 2024, the City adopted GASB Statement No. 102, Certain Risk Disclosures, which requires management to
evaluate whether there are risks related to a government’s vulnerabilities due to certain concentrations or constraints that
require disclosure. There were no significant concentrations or constraints that warranted disclosure as a result of
implementation of this standard.
Note 4 - Assets, Liabilities, and Net Position or Fund Balance
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.
Fair Value Measurements
Fair value accounting requires characterization of the inputs used to measure fair value into three-level fair value hierarchy
as follows:
Level 1 inputs are based on unadjusted quoted market prices for identical assets or liabilities in an active market
the entity has the ability to access.
Level 2 inputs are observable inputs other than quoted prices included within Level 1 that are for similar assets or
liabilities. U.S. government-backed securities are valued using Level 2 inputs that are valued using a matrix pricing
model.
Level 3 inputs are unobservable inputs for an asset or liability either directly or indirectly.
Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year
are referred to as “due to/from other funds.” Any residual balances outstanding between the governmental activities and
business-type activities are reported in the government-wide financial statements as “internal balances.” All trade and
property tax receivables are shown net of an allowance for uncollectibles. The allowance totaled $1,102,299 for General
Fund, $8,725 for Debt Service Fund, and $368,127 for Water and Sewer Fund.
Inventory
Inventory is valued at cost using the first-in, first-out (FIFO) method. Inventories consist of expendable supplies held for
consumption or the construction of plant and equipment. Inventories are recorded as expenditures when consumed rather
than when purchased.
94
32
City of The Colony, Texas
Notes to Financial Statements
September 30, 2025
Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources
related to pensions, and pension expense, information about the fiduciary net position of the Texas Municipal Retirement
System (TMRS) and additions to/deductions from TMRS’s fiduciary net position have been determined on the same basis as
they are reported by TMRS. For this purpose, plan contributions are recognized in the period that compensation is reported
for the employee, which is when contributions are legally due. Benefit payments and refunds are recognized when due and
payable in accordance with the benefit terms. Investments are reported at fair value.
OPEB
The fiduciary net position of the TMRS Supplemental Death Benefits Plan (SDBP) has been determined using the flow of
economic resources measurement focus and full accrual basis of accounting. This includes for purposes of measuring the
total OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, OPEB expense, and
information about assets, liabilities and additions to/deductions from SDBP’s fiduciary net position. Benefit payments
(including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms.
Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position reports a separate section for deferred outflows of resources. This
separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies
to a future period(s) and will not be recognized as an outflow of resources (expense/expenditure) until then. The City has
three items that qualify for reporting in this category. The City has a deferred charge on bond refunding reported in the
government-wide statement of net position. A deferred charge on refunding results 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. The City has deferred outflows of resources related to pensions as described in Note 7. The City
also has deferred outflows of resources related to its Supplemental Death Benefits Plan as described in Note 8.
In addition to liabilities, the statement of net position reports a separate section for deferred inflows of resources. This
separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to
a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has four items
that qualify for reporting in this category. The first item, unavailable revenue, is reported only in the governmental funds
balance sheet. The governmental funds report unavailable revenues from property taxes, fines, ambulance services and
other items. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become
available. The second item is deferred inflows related to leases where the City is the lessor and is reported in the
governmental funds balance sheet and statement of net position. The deferred inflows of resources related to leases are
recognized as an inflow of resources (revenue) on the straight-line basis over the term of the lease. The City also has
deferred inflows of resources related to pensions as described in Note 7 and related to its Supplemental Death Benefits
Plan as described in Note 8.
Capital Assets
Capital assets, which include property, plant and equipment and infrastructure assets (e.g., roads, bridges, sidewalks and
similar items), are reported in the applicable governmental or business-type activities columns in the government-wide
financial statements as well as the proprietary fund financial statements. Capital assets are defined by the City as assets
with an initial, individual cost of more than $5,000 and an estimated useful life in excess of one year. All purchased capital
assets are valued at cost where historical records are available and at an estimated historical cost where no historical
records exist.
In the case of the initial capitalization of general infrastructure assets (i.e., those reported by governmental activities), the
government chose to include all such items regardless of their acquisition date or amount. The City was able to estimate
the historical cost for the initial reporting of these assets through back trending (i.e., estimating the current replacement
cost of the infrastructure to be capitalized and using an appropriate price-level index to deflate the cost to the acquisition
year or estimated acquisition year). As the government constructs or acquires additional capital assets each period,
including infrastructure assets, they are capitalized and reported at historical cost.
95
33
City of The Colony, Texas
Notes to Financial Statements
September 30, 2025
Donated capital assets are recorded at acquisition value, which is the price that would be paid to acquire an asset with
equivalent service potential at the acquisition date.
The costs of normal maintenance and repairs that do not add to the value of the asset, or materially extend asset lives, are
not capitalized. Improvements are capitalized and depreciated over the remaining useful lives of the related capital assets.
Major outlays for capital assets and improvements are capitalized as projects are constructed.
Land and construction in progress are not depreciated. Other property, plant, equipment, and infrastructure of the City, as
well as the component units, are depreciated using the straight-line method over the following useful lives:
Buildings 40 years
Improvements other than buildings 10-30 years
Machinery and equipment 5-10 years
Infrastructure 40 years
Right-to-use assets 5-10 years
Right to use leased assets are recognized at the lease commencement date and represent the City’s right to use an
underlying asset for the lease term. Right to use leased assets are measured at the initial value of the lease liability plus any
payments made to the lessor before commencement of the lease term, less any lease incentives received from the lessor at
or before the commencement of the lease term, plus any initial direct costs necessary to place the lease asset into service.
Right to use leased assets are amortized over the shorter of the lease term or useful life of the underlying asset using the
straight-line method. The amortization period varies from 3 to 5 years.
Right to use subscription IT assets are recognized at the subscription commencement date and represent City’s right to use
the underlying IT asset for the subscription term. Right to use subscription IT assets are measured at the initial value of the
subscription liability plus any payments made to the vendor at the commencement of the subscription term, less any
subscription incentives received from the vendor at or before the commencement of the subscription term, plus any
capitalizable initial implementation costs necessary to place the subscription asset into service. Right to use subscription IT
assets are amortized over the shorter of the subscription term or useful life of the underlying asset using the straight-line
method. The amortization period varies from 3 to 5 years.
Lease Receivables
Lease receivables are recorded by the City as the present value of future lease payments expected to be received from the
lessee during the lease term, reduced by any provision for estimated uncollectible amounts. Lease receivables are
subsequently reduced over the life of the lease as cash is received in the applicable reporting period. The present value of
future lease payments to be received are discounted based on the interest rate the City charges the lessee.
Long-term Obligations
In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term debt
and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities,
or proprietary fund type statements of net position. Bond premiums and discounts are deferred and amortized over the life
of the bonds using the straight-line method which approximates the effective interest method. Bonds payable are reported
net of the applicable bond premium or discount.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond
issuance costs, during the current period. The face amount of debt issued is reported as other financing sources.
Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are
reported as other financing uses. Issuance costs are reported as debt service expenditures.
96
34
City of The Colony, Texas
Notes to Financial Statements
September 30, 2025
Lease liabilities represent the City’s obligation to make lease payments arising from the lease. Lease liabilities are
recognized at the lease commencement date based on the present value of future lease payments expected to be made
during the lease term. The present value of lease payments are discounted based on a borrowing rate determined by the
City.
Subscription liabilities represent the City’s obligation to make subscription payments arising from the subscription contract.
Subscription liabilities are recognized at the subscription commencement date based on the present value of future
subscription payments expected to be made during the subscription term. The present value of subscription payments are
discounted based on a borrowing rate determined by the City.
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, 2025, the TCCDC contributed $3,500,000 to the capital projects fund and $850,000 to the General
Fund. Additionally, the TCEDC contributed $397,213 to the General Fund.
Compensated Absences
City employees accumulate a limited amount of earned but unused vacation, sick leave, comp time, and holidays for
subsequent use or for payment upon termination, death or retirement. A liability is recorded when each of the following
have occurred: the leave is attributable to services already rendered, the leave accumulates and carries forward from one
reporting period to the next and the leave is more likely than not to be used for time off or otherwise paid in cash or settled
through noncash means. A liability for these amounts is reported in governmental fund financial statements only for
employees who have resigned or retired. The compensated absences liability has been computed based on rates of pay in
effect at September 30, 2025.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management
to make estimates and assumptions that affect the reported amount of assets and deferred outflows of resources and
liabilities and deferred inflows of resources and disclosures of contingent liabilities at the date of the financial statements
and the reported amounts of revenues and expenses during the reporting period. Actual amounts could differ from these
estimates.
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 2024 levy was based was $8,315,920,572.
Taxes are due on October 1 and are delinquent after the following January 31. Current tax collections for the year ended
September 30, 2025 were 98.63% 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, 2025 was $0.63500 per $100 of assessed valuation.
97
35
City of The Colony, Texas
Notes to Financial Statements
September 30, 2025
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.
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%, the City must have an election
to approve effective interest rates.
Fund Balance
The City classifies governmental fund balance in accordance with Governmental Accounting Standards Board (GASB)
Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions:
Nonspendable fund balance includes fund balance that cannot be spent either because it is not in spendable form
or because of legal or contractual constraints. The City had $104,454 and $136,295 in nonspendable fund balance
for inventory and prepaid items, respectively, in the General Fund, and $175,462 and $12,909 in nonspendable
fund balance for prepaid items in the capital projects fund and other governmental funds at September 30, 2025,
respectively.
Restricted fund balance includes amounts that can be spent only for the specific purposes stipulated by
constitution, external resource providers, or through enabling legislation. General fund balance restricted for TIRZ
1 totaled $552,240 as of September 30, 2025. Debt service fund balance restricted for the retirement of funded
indebtedness totaled $5,544,847 as of September 30, 2025. Capital projects fund balance restricted for future
capital projects totaled $51,792,762. The Pandemic Response fund included $72 of fund balance restricted for
grant activities. At September 30, 2025, fund balance restricted for special revenue fund activities included:
Restricted
Fund Balance
Hotel/motel taxes 3,889,980$
Storm water utility fund 1,648,371
Public safety fund 847,450
Citizen donations fund 11,128
PID No. 1 1,083,086
7,480,015$
98
36
City of The Colony, Texas
Notes to Financial Statements
September 30, 2025
Committed fund balance is established and modified by a resolution from City Council, the City’s highest level of
decision-making authority, and can be used only for the specified purposes determined by the Council's resolution.
At September 30, 2025, fund balance committed for special revenue fund activities included:
Committed
Fund Balance
Lake parks 2,862,636$
Special events 176,672
Keep the Colony Beautiful 10,800
3,050,108$
Assigned fund balance includes the portion of net resources for which an intended use has been established by the
City Council or the City Official authorized to do so by the City Council. Assignments of fund balance are much less
formal than commitments and do not require formal action for their imposition or removal. In governmental
funds, other than the General Fund, assigned fund balance represents the amount that is not restricted or
committed which indicates that resources are, at a minimum, intended to be used for the purpose of that fund but
does not meet the criteria to be classified as restricted or committed. The Council has authorized the City Manager
to assign fund balance.
Unassigned fund balance is the residual classification for the City's general fund and includes all spendable
amounts not contained in the other classifications, as well as negative unassigned fund balance in other
governmental funds.
Flow Assumptions
When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first,
then unrestricted resources as they are needed. It is the City’s policy to consider restricted fund balance to have been
depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted
fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned, then
unassigned fund balance.
Note 5 - Stewardship, Compliance and Accountability
Budgetary Information
The City adopts annual appropriated budgets for its General Fund, Debt Service Fund, Lake Parks Fund, Special Events Fund,
Hotel/Motel Taxes Fund, Storm Water Utility Fund, and Public Safety Fund. The budgetary comparison schedules have been
provided for these funds to demonstrate compliance with the budgets.
For the year ended September 30, 2025, expenditures exceeded appropriations in the general fund as follows:
General government ($2,131,742)
Economic development ($783,264)
Capital outlay ($2,793,352)
Debt Service ($1,231,338)
99
37
City of The Colony, Texas
Notes to Financial Statements
September 30, 2025
Note 6 - Detailed Notes on All Funds
Cash and Investments
Custodial Credit Risk. Cash deposits of the City, TCEDC, TCCDC, and TCLFD at September 30, 2025, were entirely secured by
FDIC insurance and pledged collateral held by the City’s agent bank.
State statutes authorize the City to invest in (1) obligations of the United States or its agencies and instrumentalities; (2)
direct obligations of the State of Texas or its agencies; (3) Texas local government investment pools; (4) obligations of
states, agencies, counties, cities, and other political subdivisions of any state having been rated as investment quality by a
nationally recognized investment rating firm and having received a rating of not less than A or its equivalent; (5) certificates
of deposit by state and national banks domiciled in this state that are (a) guaranteed or insured by the Federal Deposit
Insurance Corporation, or its successor; or (b) secured by obligations that are described by (1) – (4); (6) and reverse
repurchase agreements not to exceed 90 days to stated maturity.
Cash and investments as of September 30, 2025 consist of the following:
2025
Cash on hand 5,134$
Deposits with financial institutions 3,296,238
Investment pools and money market mutual funds 217,007,626
220,308,998$
Following are the City’s investments at September 30, 2025, including classification by level, within the fair value hierarchy:
Weighted
Percent of Average
Reported Value Level Total Maturity
Investment Pools
TexPool 115,585,829$ N/A 79.31% < 60 days
TexPool Prime 30,158,751 N/A 20.69% < 60 days
Other Investments
Money Market
Mutual Funds 150 Level 1 0.00% < 60 days
Total Investments 145,744,730$ 100.00%
Primary Government
100
38
City of The Colony, Texas
Notes to Financial Statements
September 30, 2025
Weighted
Percent of Average
Reported Value Level Total Maturity
Investment Pools
TexPool 19,903,157$ N/A 59.65% < 60 days
TexPool Prime 5,052,264 N/A 15.14% < 60 days
Other Investments
Money Market
Mutual Funds 8,411,296 Level 1 25.21% < 60 days
Total Investments 33,366,717$ 100.00%
TCEDC
Weighted
Percent of Average
Reported Value Level Total Maturity
Investment Pools
TexPool 8,768,592$ N/A 45.19% < 60 days
TexPool Prime 2,225,840 N/A 11.47% < 60 days
Other Investments
Money Market
Mutual Funds 8,411,079 Level 1 43.34% < 60 days
Total Investments 19,405,511$ 100.00%
Weighted
Percent of Average
Reported Value Level Total Maturity
Other Investments
Money Market
Mutual Funds 18,490,668$ Level 1 100.00% < 60 days
Total Investments 18,490,668$ 100.00%
TCCDC
TCLDC
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.
101
39
City of The Colony, Texas
Notes to Financial Statements
September 30, 2025
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.
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, 2025 the City did not invest in any securities which are highly sensitive to interest rate fluctuations.
Credit Risk. State law and City policy limit investments in local government investment pools to those rated no lower than
AAA or an equivalent rating by at least one nationally recognized rating service. As of September 30, 2025, the City’s
investments in TexPool and TexPool Prime were both rated AAAm by Standard & Poor’s.
Concentration of Credit Risk. Statutes and the City’s investment policy limits the investment portfolio by the following:
Maximum Maximum
Maximum Percentage Investment in
Maturity of Portfolio 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 Deposit 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
Authorized Investment Type
102
40
City of The Colony, Texas
Notes to Financial Statements
September 30, 2025
Capital Assets
A summary of changes in capital assets follows:
Beginning Ending
Balance Additions Transfers Retirements Balance
Governmental activities
Capital assets, not being depreciated
Land 7,999,486$ 401,139$ -$ -$ 8,400,625$
Rights-of-way 25,571,036 - - - 25,571,036
Construction in progress 34,465,849 26,481,293 (18,386,162) - 42,560,980
Total assets not being depreciated 68,036,371 26,882,432 (18,386,162) - 76,532,641
Capital assets, being depreciated:
Buildings 47,142,921 106,550 19,357 - 47,268,828
Improvements other than buildings 22,272,215 95,221 1,770,543 - 24,137,979
Swimming pool 1,839,255 18,243 1,839,506 - 3,697,004
Machinery and equipment 24,508,429 2,840,240 1,939,285 - 29,287,954
Infrastructure 307,052,371 5,807,593 10,370,076 - 323,230,040
Total capital assets being depreciated 402,815,191 8,867,847 15,938,767 - 427,621,805
Less accumulated depreciation
Buildings 16,722,427 1,506,165 - - 18,228,592
Improvements other than buildings 12,028,874 929,717 - - 12,958,591
Swimming pool 1,428,125 153,121 - - 1,581,246
Machinery and equipment 16,646,542 2,030,141 - - 18,676,683
Infrastructure 142,431,791 7,487,104 - - 149,918,895
Total accumulated depreciation 189,257,759 12,106,248 - - 201,364,007
Total capital assets being depreciated, net 213,557,432 (3,238,401) 15,938,767 - 226,257,798
Right to use leased assets, being amortized
Machinery and equipment 1,321,151 41,742 - - 1,362,893
Less accumulated amortization
Machinery and equipment 415,198 208,221 - - 623,419
Total right to use leased assets being
amortized, net 905,953 (166,479) - - 739,474
Right to use SBITA assets, being amortized 413,970 1,942,391 - 159,598 2,196,763
Less accumulated amortization 201,546 743,502 - 109,873 835,175
Net right to use SBITA assets 212,424 1,198,889 - 49,725 1,361,588
Total leased and subscription IT assets, net 1,118,377 1,032,410 - 49,725 2,101,062
Governmental activities capital assets, net 282,712,180$ 24,676,441$ (2,447,395)$ 49,725$ 304,891,501$
103
41
City of The Colony, Texas
Notes to Financial Statements
September 30, 2025
Beginning Ending
Balance Additions Transfers Retirements Balance
Business-type activities
Capital assets, not being depreciated
Land 3,273,473$ -$ -$ -$ 3,273,473$
Construction in progress 5,937,663 1,783,024 1,012,413 110,282 8,622,818
Total assets not being depreciated 9,211,136 1,783,024 1,012,413 110,282 11,896,291
Capital assets, being depreciated:
Buildings 13,221,303 46,000 12,187 - 13,279,490
Water system 97,810,884 2,801,695 1,397,301 - 102,009,880
Sanitary system 99,638,160 1,992,406 - - 101,630,566
Drainage system 1,684,364 - - - 1,684,364
Machinery and equipment 6,059,771 699,639 25,494 - 6,784,904
Infrastructure 16,615,671 - - 8,191,679 8,423,992
Total capital assets being depreciated 235,030,153 5,539,740 1,434,982 8,191,679 233,813,196
Less accumulated depreciation
Buildings 1,101,634 259,443 - - 1,361,077
Water system 36,630,670 2,496,439 - - 39,127,109
Sanitary system 34,725,816 2,854,422 - - 37,580,238
Drainage system 1,658,668 1,749 - - 1,660,417
Machinery and equipment 4,334,361 692,108 - - 5,026,469
Infrastructure 10,342,745 246,248 - 8,191,679 2,397,314
Total accumulated depreciation 88,793,894 6,550,409 - 8,191,679 87,152,624
Total capital assets being depreciated, net 146,236,259 (1,010,669) 1,434,982 - 146,660,572
Business activities capital assets, net 155,447,395$ 772,355$ 2,447,395$ 110,282$ 158,556,863$
Beginning Ending
Balance Additions Transfers Retirements Balance
TCEDC
Capital assets, not being depreciated
Land 6,355,178$ -$ -$ -$ 6,355,178$
Construction in progress 737,694 57,304 (794,998) - -
Total assets not being depreciated 7,092,872 57,304 (794,998) - 6,355,178
Capital assets, being depreciated:
Other improvements - - 473,676 - 473,676
Vehicles 186,414 - 321,322 - 507,736
Total capital assets being depreciated 186,414 - 794,998 - 981,412
Less accumulated depreciation
Other improvements - 22,839 - - 22,839
Vehicles 37,490 49,949 - - 87,439
Total accumulated depreciation 37,490 72,788 - - 110,278
Total capital assets being depreciated, net 148,924 (72,788) 794,998 - 871,134
TCEDC capital assets, net 7,241,796$ (15,484)$ -$ -$ 7,226,312$
Beginning Ending
Balance Additions Transfers Retirements Balance
TCLDC
Capital assets, not being depreciated
Land 22,321,911$ -$ -$ -$ 22,321,911$
Total assets not being depreciated 22,321,911 - - - 22,321,911
TCLDC capital assets, net 22,321,911$ -$ -$ -$ 22,321,911$
104
42
City of The Colony, Texas
Notes to Financial Statements
September 30, 2025
Depreciation and amortization expense was charged to functions/programs of the primary government as follows:
Governmental activities
General government 5,026,143$
Public safety 2,487,238
Public works 4,575,709
Culture and recreation 968,881
Total depreciation/amortization expense - Governmental activities 13,057,971$
Business-type activities
Water and sewer 6,550,409$
Total depreciation/amortization expense - Business-type activities 6,550,409$
Lessee Activities
The City entered into various lease agreements as lessee for the use of buildings, machinery and equipment, and
infrastructure. As of September 30, 2025, the value of the lease liability was $667,250. The City is required to make monthly
or annual principal and interest payments through November 2028. The lease liability was valued using a discount rate
ranging from 0.25% to 2.70% as determined by the City’s management based on the City’s estimated incremental
borrowing rate.
Lessor Activities
The City has accrued a receivable for one land lease and two infrastructure leases. The remaining receivable for these leases
was $5,488,221 for the year ended September 30, 2025. Deferred inflows related to these leases were $5,189,355 as of
September 30, 2025. The interest rate on the leases ranged from 0.28% – 5.71%. Final receipt is expected in fiscal year
2067.
Subscription IT Activities
As of September 30, 2025, the value of the SBITA liability was $1,380,449. The City is required to make annual principal and
interest payments through November 2029. The SBITA liability was valued using a discount rate ranging from 2.426% to
7.9216% as determined by the City’s management based on the City’s estimated incremental borrowing rate.
Interfund Transfers
The composition of interfund transfers in/out as of September 30, 2025, is as follows:
Fund Transfers In Transfers Out Purpose
General 1,916,068$ 41,384$ Funding for capital projects, special events, and programs
Debt Service - 1,600,000 Reimburse general fund for prior debt service
Capital Projects 3,195,605 206,068 Funding for capital projects
Other Governmental 1,447,458 4,811,679 Funding for capital projects, special events, and programs
Water and Sewer 100,000 - Funding for capital projects
6,659,131$ 6,659,131$
Governmental activities -$ 2,447,395$ Transfer of capital assets
Business-Type activities 2,447,395 - Transfer of capital assets
9,106,526$ 9,106,526$
105
43
City of The Colony, Texas
Notes to Financial Statements
September 30, 2025
Long-term Obligations
Long-term obligations of the City’s governmental activities consist of general obligation bonds, certificates of obligation,
financed purchases, lease liabilities, and SBITA liabilities. Sources of retirement of general obligation bond and certificates
of obligation are provided from ad valorem tax. Governmental activities long-term obligations are paid by the debt service
fund, general fund, and capital projects fund.
Long-term obligations of the City’s business-type activities consist of general obligation bonds and certificates of obligation.
Business-type activities long-term obligations are serviced by revenue from the Water and Sewer and Storm Drainage
systems.
Compensated absences, net pension liability and total OPEB liability are paid from the fund out of which an employee is
regularly paid, primarily the General Fund, Water and Sewer Fund, Storm Drainage Fund and TCEDC. The following is a
summary of changes in long-term obligations for the year ended September 30, 2025:
Beginning Transfers/Ending Due Within
Balance (Restated) Additions Retirements Balance One Year
Governmental activities
Certificates of obligation 49,392,450$ 73,630,000$ (6,027,400)$ 116,995,050$ 4,598,500$
General obligation bonds 6,564,210 - (1,485,391) 5,078,819 1,540,196
Financed purchases 5,574,372 - (672,773) 4,901,599 679,500
Bond premiums/discounts (net) 4,434,925 5,260,927 (618,534) 9,077,318 -
Lease obligation 828,236 41,742 (202,728) 667,250 203,522
SBITA obligation 209,568 1,942,391 (771,510) 1,380,449 376,438
Net pension liability 13,999,708 - (2,475,705) 11,524,003 -
Total OPEB liability 872,186 767 - 872,953 22,036
Compensated absences 2,746,526 - 123,844 2,870,370 2,841,666
Total governmental
activities 84,622,181$ 80,875,827$ (12,130,197)$ 153,367,811$ 10,261,858$
Business-type activities
Certificates of obligation 45,697,550$ 7,030,000$ (3,012,600)$ 49,714,950$ 3,071,500$
General obligation bonds 4,765,790 - (1,729,609) 3,036,181 1,784,804
Bond premiums/discounts (net) 3,990,604 516,089 (421,806) 4,084,887 -
Net pension liability 2,248,378 - (378,441) 1,869,937 -
Total OPEB liability 140,075 1,574 - 141,649 3,576
Compensated absences 300,125 - 27,883 328,008 324,728
Total business type
activities 57,142,522 7,547,663 (5,514,573) 59,175,612 5,184,608
Primary government 141,764,703$ 88,423,490$ (17,644,770)$ 212,543,423$ 15,446,466$
Component Units
Revenue bonds 190,820,000$ -$ (4,900,000)$ 185,920,000$ 5,255,000$
Bond premiums/discounts (net) (2,570,536) - 136,092 (2,434,444) -
Net pension liability 221,341 (93,367) - 127,974 -
Total OPEB liability 13,789 (4,095) - 9,694 -
Compensated absences 21,552 - 356 21,908 51,612
188,506,146$ (97,462)$ (4,763,552)$ 183,645,132$ 5,306,612$
106
44
City of The Colony, Texas
Notes to Financial Statements
September 30, 2025
The following is a schedule of the City’s outstanding bonds:
Governmental Business Type Component
Activities Activities Units
Outstanding Outstanding Outstanding
Certificates of Obligation
Combination Tax and Surplus Revenue Certificates of Obligation, Series 2013, 2.00%
to 4.375%, maturing in annual installments of $155,000 to $675,000 through 2033.1,020,000$ -$ -$
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 2035.1,854,300 11,390,700 -
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.- 5,955,000 -
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 2037.7,105,000 3,045,000 -
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 2038.7,866,000 874,000 -
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 2039.8,230,500 5,044,500 -
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 2040.2,778,750 8,336,250 -
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 2040.6,502,500 722,500 -
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 2039.11,133,000 7,422,000 -
Combination Tax and Surplus Revenue Certificates of Obligation, Series 2024, 4.00%
to 5.00%, maturing in annual installments of $1,025,000 to $3,230,000 through 2044.28,660,000 2,860,000 -
Combination Tax and Surplus Revenue Certificates of Obligation, Series 2025, 4.00%
to 5.00%, maturing in annual installments of $685,000 to $3,435,000 through 2045.41,845,000 4,065,000 -
116,995,050 49,714,950 -
General Obligation Bonds
General Obligation Refunding Bonds, Series 2014, 2.00% to 5.00%, maturing
in annual installments of $55,000 to $1,535,000 through 2026.260,950 1,274,050
General Obligation Refunding Bonds, Series 2015, 3.00% to 4.00%, maturing
in annual installments of $840,000 to $1,715,000 through 2027.1,312,400 617,600
General Obligation Refunding Bonds, Series 2020, 3.00% to 4.00%, maturing
in annual installments of $806,446 to $263,304 through 2030.3,505,469 1,144,531
5,078,819 3,036,181 -
107
45
City of The Colony, Texas
Notes to Financial Statements
September 30, 2025
Governmental Business Type Component
Activities Activities Units
Outstanding Outstanding Outstanding
Revenue Bonds
Sales Tax Revenue Bonds, Series 2013 (Infrastructure Bonds), 4.50% to 7.25%,
maturing in annual installments of $195,000 to $2,770,000 through 2042. -$ -$ 26,540,000$
Sales Tax Revenue Bonds, Series 2013 (Infrastructure Bonds), 4.50% to 7.25%,
maturing in annual installments of $195,000 to $2,770,000 through 2042. - - 26,540,000
Sales Tax Increment Contract Revenue Bonds, Series 2013 (Infrastructure Bonds),
5.00% to 7.625%, maturing in annual installments through 2042. - - 14,420,000
Sales Tax Increment Contract Revenue Bonds, Series 2013 (Infrastructure Bonds),
2.594% to 4.881%, maturing in annual installments through 2047. - - 98,960,000
Sales Tax Revenue Bonds, Series 2017 (Infrastructure Bonds), 3.520%,
maturing in annual installments through 2032 - - 3,775,000
Tax Increment Contract Revenue Refunding Bonds, Series 2021, 3.580%,
maturing in annual installments through 2034. - - 15,685,000
- - 185,920,000
122,073,869$ 52,751,131$ 185,920,000$
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 $51.8 million as of September 30, 2025. Interest and principal paid were $3,143,923 and
$2,532,771, respectively, for TCEDC and TCCDC during the year ended September 30, 2025. Incremental sales tax revenues
recognized were $4,573,540 for both TCCDC and TCEDC with regards to each corporation’s 2013 bond series during the
year ended September 30, 2025.
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 $185.8 million as of September 30, 2025. Interest and principal paid and incremental sales tax
revenues recognized were $9,686,899 and $12,344,444, respectively, during the year ended September 30, 2025.
108
46
City of The Colony, Texas
Notes to Financial Statements
September 30, 2025
Annual Requirements to Retire Bond Obligations
The annual requirements to retire general long-term debt, including interest, as of September 30, 2025 are as follows:
Fiscal Year Ending
September 30 Principal Interest Total Principal Interest Total
2026 4,598,500$ 5,695,162$ 10,293,662$ 3,071,500$ 2,014,394$ 5,085,894$
2027 5,507,350 4,773,683 10,281,033 3,257,650 1,814,429 5,072,079
2028 5,501,000 4,531,101 10,032,101 3,284,000 1,688,805 4,972,805
2029 5,532,600 4,273,533 9,806,133 3,392,400 1,557,655 4,950,055
2030 5,613,500 4,016,183 9,629,683 3,416,500 1,423,614 4,840,114
2031-2035 31,819,400 16,029,379 47,848,779 19,260,600 4,919,284 24,179,884
2036-2040 33,306,700 8,834,549 42,141,249 10,553,300 1,850,432 12,403,732
2041-2045 25,116,000 2,556,063 27,672,063 3,479,000 295,675 3,774,675
Total 116,995,050$ 50,709,653$ 167,704,703$ 49,714,950$ 15,564,288$ 65,279,238$
Business-Type Activities
Certificates of Obligation
Governmental Activities
Fiscal Year Ending
September 30 Principal Interest Total Principal Interest Total
2026 1,540,196$ 222,474$ 1,762,670$ 1,784,804$ 113,976$ 1,898,780$
2027 1,333,570 163,603 1,497,173 531,430 56,297 587,727
2028 701,094 110,253 811,347 228,906 35,997 264,903
2029 731,248 75,198 806,446 238,752 24,552 263,304
2030 772,711 38,636 811,347 252,289 12,614 264,903
Total 5,078,819$ 610,164$ 5,688,983$ 3,036,181$ 243,436$ 3,279,617$
General Obligation Bonds
Governmental Activities Business-Type Activities
Fiscal Year Ending
September 30 Principal Interest Total
2026 5,255,000$ 10,091,049$ 15,346,049$
2027 5,620,000 9,842,166 15,462,166
2028 6,005,000 9,571,383 15,576,383
2029 6,425,000 9,276,897 15,701,897
2030 6,865,000 8,949,155 15,814,155
2031-2035 40,290,000 38,818,567 79,108,567
2036-2040 44,785,000 26,876,739 71,661,739
2041-2045 48,605,000 11,332,246 59,937,246
2046-2047 22,070,000 1,657,832 23,727,832
Total 185,920,000$ 126,416,034$ 312,336,034$
Component Units
Revenue Bonds
109
47
City of The Colony, Texas
Notes to Financial Statements
September 30, 2025
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.
During 2023, the City entered into a financed purchase agreement of $6,969,000 with principal and interest of 1.0% being
paid through fiscal year 2032. The agreement requires annual payments of $728,517. The City entered into the agreement
to acquire land and building. The Capital Projects fund has typically been used to liquidate the liability.
The annual requirements to retire the financed purchase, including interest, as of September 30, 2025 are as follows:
Fiscal Year Ending
September 30 Principal Interest Total
2026 679,500$ 49,016$ 728,516$
2027 686,295 42,221 728,516
2028 693,158 35,358 728,516
2029 700,090 28,426 728,516
2030 707,091 21,426 728,517
2031-2032 1,435,465 21,568 1,457,033
Total 4,901,599$ 198,015$ 5,099,614$
Financed Purchase
Governmental Activities
Lease Liability
The annual requirements to retire lease obligations, including interest, as of September 30, 2025 are as follows:
Fiscal Year Ending
September 30 Principal Interest Total
2026 203,522$ 14,947$ 218,469$
2027 206,362 10,253 216,615
2028 211,180 5,436 216,616
2029 40,094 496 40,590
2030 6,092 87 6,179
Total 667,250$ 31,219$ 698,469$
Lease Liability
Governmental Activities
110
48
City of The Colony, Texas
Notes to Financial Statements
September 30, 2025
SBITA Liability
The annual requirements to retire SBITA obligations, including interest, as of September 30, 2025 are as follows:
Fiscal Year Ending
September 30 Principal Interest Total
2026 376,438$ 73,517$ 449,955$
2027 324,253 54,954 379,207
2028 330,799 37,458 368,257
2029 348,959 19,297 368,256
Total 1,380,449$ 185,226$ 1,565,675$
SBITA Liability
Governmental Activities
Note 7 - Defined Benefit Pension Plan
Plan Description
The City participates as one of 938 plans in the nontraditional, joint contributory, hybrid defined benefit pension plan
administered by the Texas Municipal Retirement System (TMRS). TMRS is an agency created by the State of Texas and
administered in accordance with the TMRS Act, Subtitle G, Title 8, Texas Government Code (the TMRS Act) as an agent
multiple-employer retirement system for municipal employees in the State of Texas. The TMRS Act places the general
administration and management of the System with a six-member Board of Trustees. Although the Governor, with the
advice and consent of the Senate, appoints the Board, TMRS is not fiscally dependent on the State of Texas. TMRS’s defined
benefit pension plan is a tax-qualified plan under Section 401(a) of the Internal Revenue Code. TMRS issues a publicly
available annual comprehensive financial report (ACFR) that can be obtained at www.tmrs.com.
111
49
City of The Colony, Texas
Notes to Financial Statements
September 30, 2025
All eligible employees of the City are required to participate in TMRS.
Benefits Provided
TMRS provides retirement, disability, and death benefits. Benefit provisions are adopted by the governing body of the City,
within the options available in the state statutes governing TMRS.
At retirement, the benefit is calculated as if the sum of the employee’s contributions, with interest, and the city-financed
monetary credits with interest were used to purchase an annuity. Members may choose to receive their retirement benefit
in one of seven payments options. Members may also choose to receive a portion of their benefit as a Partial Lump Sum
Distribution in an amount equal to 12, 24, or 36 monthly payments, which cannot exceed 75% of the member’s deposits
and interest.
The plan provisions are adopted by the governing body of each city, within the options available in the state statutes
governing TMRS. The City has elected that members can retire at age 60 and above with 5 or more years of service or with
20 years of service regardless of age. Members may work for more than one TMRS city during their career. If a member is
vested in one TMRS city, he or she is immediately vested upon employment with another TMRS city. Similarly, once a
member has met the eligibility requirements for retirement in a TMRS city, he or she is eligible in other TMRS cities as well.
At the December 31, 2024 valuation and measurement date, the following employees were covered by the benefit terms:
Inactive employees or beneficiaries currently receiving benefits 267
Inactive employees entitled to but not yet receiving benefits 269
Active employees 437
Total 973
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 were 13.45% and 13.75% in calendar years 2024 and 2025, respectively. The City’s
contributions to TMRS for the year ended September 30, 2025, were $5,533,309, and were equal to the required
contributions.
Net Pension Liability
The City’s Net Pension Liability (NPL) was measured as of December 31, 2024, 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, 2024 actuarial valuation was determined using the
following actuarial assumptions:
Inflation 2.50%
Overall payroll growth 3.60% to 11.85% including inflation
Investment rate of return 6.75%
112
50
City of The Colony, Texas
Notes to Financial Statements
September 30, 2025
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 as of
December 31, 2022. The assumptions were adopted in 2023 and first used in the December 31, 2023 actuarial valuation.
The post-retirement mortality assumption for Annuity Purchase Rates (APRs) is based on the Mortality Experience
Investigation Study covering 2009 through 2011 and dated December 31, 2013. Plan assets are managed on a total return
basis with an emphasis on both capital appreciation as well as the production of income in order to satisfy the short-term
and long-term funding needs of TMRS.
The long-term expected rate of return on pension plan investments was determined using a building-block method in which
best estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and
inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of
return by weighting the expected future real rates of return by the target asset allocation percentage and by adding
expected inflation. In determining their best estimate of a recommended investment return assumption under the various
alternative asset allocation portfolios, GRS focused on the area between (1) arithmetic mean (aggressive) without an
adjustment for time (conservative) and (2) the geometric mean (conservative) with an adjustment for time (aggressive). The
target allocation and best estimates of real rates of return for each major asset class in fiscal year 2025 are summarized in
the following table:
Long-Term
Expected
Real Rate
Target of Return
Allocation (Arithmetic)
Global Public Equity 35.00% 7.10%
Core Fixed Income 6.00% 5.00%
Non-Core Fixed Income 6.00% 6.80%
Private Debt 13.00% 8.20%
Real Estate 12.00% 6.70%
Hedge Funds 5.00% 6.40%
Infrastructure 6.00% 6.00%
Other Private Markets 4.00% 7.30%
Private Equity 13.00% 8.50%
Total 100.00%
Asset Class
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.
113
51
City of The Colony, Texas
Notes to Financial Statements
September 30, 2025
Changes in the Net Pension Liability
Plan Net Pension
Total Pension Fiduciary Liability/
Liability Net Position (Asset)
Entity-Wide (a) (b)(a) - (b)
Balance at 12/31/2023 140,423,549$ 123,954,122$ 16,469,427$
Changes for the year:
Service cost 6,443,243 - 6,443,243
Interest 9,481,413 - 9,481,413
Change in benefit terms - - -
Difference between expected and actual experience 1,441,699 - 1,441,699
Change in assumptions - - -
Contributions - employer - 4,943,110 (4,943,110)
Contributions - employee - 2,561,198 (2,561,198)
Net investment income - 12,894,094 (12,894,094)
Benefit payments, including refunds of contributions (6,359,577) (6,359,577) -
Administrative expense - (82,600) 82,600
Other changes - (1,934) 1,934
Net changes 11,006,778 13,954,291 (2,947,513)
Balance at 12/31/2024 151,430,327$ 137,908,413$ 13,521,914$
Plan Net Pension
Total Pension Fiduciary Liability/
Liability Net Position (Asset)
Primary Government (a) (b)(a) - (b)
Balance at 12/31/2023 138,527,831$ 122,279,745$ 16,248,086$
Changes for the year:
Service cost 6,382,032 - 6,382,032
Interest 9,456,705 - 9,456,705
Change in benefit terms - - -
Difference between expected and actual experience 1,428,003 - 1,428,003
Change in assumptions - - -
Contributions - employer - 4,896,150 (4,896,150)
Contributions - employee - 2,536,867 (2,536,867)
Net investment income - 12,771,600 (12,771,600)
Benefit payments, including refunds of contributions (6,299,161) (6,299,161) -
Administrative expense - (81,815) 81,815
Other changes - (1,916) 1,916
Net changes 10,967,579 13,821,725 (2,854,146)
Balance at 12/31/2024 149,495,410$ 136,101,470$ 13,393,940$
Increase (Decrease)
Increase (Decrease)
114
52
City of The Colony, Texas
Notes to Financial Statements
September 30, 2025
Plan Net Pension
Total Pension Fiduciary Liability/
Liability Net Position (Asset)
Component Units (a) (b) (a) - (b)
Balance at 12/31/2023 1,895,718$ 1,674,377$ 221,341$
Changes for the year:
Service cost 61,211 - 61,211
Interest 24,708 - 24,708
Change in benefit terms - - -
Difference between expected and actual experience 13,696 - 13,696
Change in assumptions - - -
Contributions - employer - 46,960 (46,960)
Contributions - employee - 24,331 (24,331)
Net investment income - 122,494 (122,494)
Benefit payments, including refunds of contributions (60,416) (60,416) -
Administrative expense - (785) 785
Other changes - (18) 18
Net changes 39,199 132,566 (93,367)
Balance at 12/31/2024 1,934,917$ 1,806,943$ 127,974$
Increase (Decrease)
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 in 1% Increase in
Discount Rate Discount Rate Discount Rate
(5.75%)(6.75%)(7.75%)
City's net pension liability (asset)35,039,876$ 13,521,914$ (4,170,505)$
Reported by Governmental Activities 29,862,609 11,524,003 (3,554,298)
Reported by Business-Type Activities 4,845,642 1,869,937 (576,737)
Reported by Component Units 331,624 127,974 (39,470)
35,039,876$ 13,521,914$ (4,170,505)$
Pension Plan Fiduciary Net Position: Detailed information about the pension plan’s Fiduciary Net Position is available in a
separately-issued TMRS financial report. That report may be obtained on the Internet at www.tmrs.com.
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
For the year ended September 30, 2025, the City recognized pension expense of $5,729,401.
115
53
City of The Colony, Texas
Notes to Financial Statements
September 30, 2025
At September 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to
pensions from the following sources:
Deferred Deferred Deferred Deferred Deferred Deferred
Outflows of Inflows of Outflows of Inflows of Outflows of Inflows of
Resources Resources Resources Resources Resources Resources
Differences between expected 1,987,878$ -$ 1,969,216$ -$ 18,662$ -$
and actual economic experience
Changes in actuarial assumptions - 202,295 - 200,373 - 1,922
Difference between projected - 1,493,796 - 1,479,665 - 14,131
and actual investment earnings
Contributions subsequent to the 4,254,136 - 4,213,722 - 40,414 -
measurement date
Total 6,242,014$ 1,696,091$ 6,182,938$ 1,680,038$ 59,076$ 16,053$
Entity-Wide Primary Government Component Units
$4,254,136 reported as deferred outflows of resources related to pensions resulting from contributions subsequent to the
measurement date will be recognized as a reduction of the net pension liability for the year ending September 30, 2026.
Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension
expense as follows:
Year Ended Component
September 30: Entity-Wide Primary Govt Units
2026 668,767$ 662,787$ 5,980$
2027 1,880,847 1,864,029 16,818
2028 (1,523,870) (1,510,244) (13,626)
2029 (733,957) (727,394) (6,563)
291,787$ 289,178$ 2,609$
Note 8 - Other Post Employment Benefits
Plan Description
The City also participates in a single employer, 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 (Supplemental Death Benefits) for their active members, including or not
including retirees.
116
54
City of The Colony, Texas
Notes to Financial Statements
September 30, 2025
Benefits Provided
The death benefit for active employees provides a lump-sum payment approximately equal to the employee’s annual salary
(calculated based on the employee’s actual earnings for the 12-month period preceding the month of death). The death
benefit for retirees is considered an other postemployment benefit (OPEB) and is a fixed amount of $7,500. As the SDBF
covers both active and retiree employees, with no segregation of assets, the SDBF is considered to be an unfunded OPEB
plan. Texas Local Government Code Section 177.001 assigns the authority to establish and amend benefit provisions to the
City Council. At the December 31, 2024 valuation and measurement date, the following employees were covered by the
benefit terms:
Inactive employees or beneficiaries currently receiving benefits 178
Inactive employees entitled to but not yet receiving benefits 50
Active employees 437
Total 665
Contributions
The City contributes to the SDBF program at a contractually required rate. An annual actuarial valuation is performed, and
the contractual rate is equal to the cost of providing one-year term life insurance. The premium rate is expressed as a
percentage of the covered payroll of members employed by the participating employer. There is a one-year delay between
the actuarial valuation that serves as the basis for the employer contribution rate and the calendar year when the rate goes
into effect.
The SDBF program is voluntary and employers can cease participation by adopting an ordinance before November 1 of any
year to be effective the following January 1. Therefore, the funding policy of the program is to ensure that adequate
resources are available to meet all insurance benefit payments for the upcoming year. It is not the intent of the funding
policy to pre-fund retiree term life insurance during employees’ entire careers. The City’s contribution, which equaled the
required contribution, was as follows for the year ended September 30:
2025
Employer rate 0.20%
Employer contributions 25,612$
Actuarial Assumptions
The total OPEB liability in the December 31, 2024 actuarial valuation was determined using the following actuarial
assumptions:
Inflation 2.5%
Salary increases 3.60% to 11.85%, including inflation
Discount rate 4.08%
Mortality rates for service retirees 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 disabled retirees were based on the 2019 Municipal Retirees of Texas Mortality Tables with a 4 year set-
forward for males and a 3 year set-forward for females. In addition, a 3.5% and 3% minimum mortality rate will be applied
to reflect the impairment for younger members who become disabled for males and females, respectively. The rates are
projected on a fully generational basis by Scale UMP to account for future mortality improvements subject to the floor.
Actuarial assumptions used in the December 31, 2024 valuation were based on the results of actuarial experience studies.
The experience study in TMRS was for the period ending December 31, 2022.
117
55
City of The Colony, Texas
Notes to Financial Statements
September 30, 2025
The SDBF program is treated as an unfunded OPEB plan because the SDBF trust covers both actives and retirees and the
assets are not segregated for these groups. A discount rate of 4.08% was based on the Fidelity Index’s 20-Year Municipal
GO AA Index as of December 31, 2024.
OPEB Liability, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
At September 30, 2025, the City reported a total OPEB liability of $1,024,296 measured at December 31, 2024. For the year
ended September 30, 2025, the City recognized OPEB expense of $47,316.
As of December 31, 2024, the discount rate used in the development of the total OPEB liability was 4.08% compared to
3.77% as of December 31, 2023.
Changes in the total OPEB liability for the measurement year ended December 31, 2024 are as follows:
Primary Component
Changes in Total OPEB Liability Entity-Wide Government Units
Balance at December 31, 2023 1,026,050$ 1,012,261$ 13,789$
Changes for the year:
Service cost 47,565 51,192 (3,627)
Interest on total OPEB liability 39,096 38,725 371
Changes of benefit terms - - -
Differences between expected and (7,194) (7,126) (68)
actual experience
Effect of assumption changes or inputs (55,609) (55,081) (528)
Benefit payments* (25,612) (25,369) (243)
Balance as of December 31, 2024 1,024,296$ 1,014,602$ 9,694$
Total OPEB Liability
*Due to the SDBF being considered an unfunded OPEB plan under GASB 75, benefit payments are treated as being equal to
the employer’s yearly contributions for retirees.
Discount Rate Sensitivity Analysis
The following presents the total OPEB liability of the City, calculated using the discount rate of 4.08%, 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 (3.08%) or 1
percentage point higher (5.08%) than the current rate.
1% Decrease in 1% Increase in
Discount Rate Discount Rate Discount Rate
(3.08%)(4.08%)(5.08%)
City's total OPEB liability 1,220,660$ 1,024,296$ 869,345$
Reported by Governmental Activities 1,040,304 872,953 740,896
Reported by Business-Type Activities 168,804 141,649 120,221
Reported by Component Units 11,552 9,694 8,228
1,220,660$ 1,024,296$ 869,345$
118
56
City of The Colony, Texas
Notes to Financial Statements
September 30, 2025
At December 31, 2024, the City reported its deferred outflows of resources and deferred inflows of resources related to
OPEB from the following sources:
Deferred Deferred Deferred Deferred Deferred Deferred
Outflows of Inflows of Outflows of Inflows of Outflows of Inflows of
Resources Resources Resources Resources Resources Resources
Differences between expected 4,257$ 55,436$ 4,217$ 54,909$ 40$ 527$
and actual economic experience
Changes in actuarial assumptions 116,235 312,119 115,125 309,167 1,110 2,952
Contributions subsequent to the 19,462 - 19,288 - 174 -
measurement date
Total 139,954$ 367,555$ 138,630$ 364,076$ 1,324$ 3,479$
Entity-Wide Primary Government Component Units
Deferred outflows of resources related to OPEB resulting from contributions subsequent to the measurement date will be
recognized as a reduction of the total OPEB liability for the year ended September 30, 2026 in the amount of $19,462. The
other net amounts of the employer’s balances of deferred outflows and inflows of resources related to OPEB, excluding
contributions made subsequent to the measurement date, will be recognized in OPEB expense as follows:
Year Ended Primary Component
September 30:Entity-Wide Government Units
2026 (38,125)$ (37,900)$ (225)$
2027 (59,683) (59,430) (253)
2028 (77,397) (77,110) (287)
2029 (62,475) (62,118) (357)
2030 (2,408) (2,008) (400)
Thereafter (6,975) (6,755) (220)
(247,063)$ (245,321)$ (1,742)$
Note 9 - 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 2025, 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 10 - Commitments and Contingencies
The City participates in grant programs which are governed by various rules and regulations of the grantor agencies. Costs
charged to the respective grant programs are subject to audit and adjustment by the grantor agencies; therefore, to the
extent that the City has not complied with the rules and regulations governing the grants, refunds of any money received
may be required and the collectability of any related receivable may be impaired. In the opinion of the City, there are no
significant contingent liabilities relating to compliance with the rules and regulations governing the respective grants;
therefore, no provision has been recorded in the accompanying basic financial statements for such contingencies.
Estimated costs to complete significant construction projects in progress at year-end totaled approximately $16,065,000.
119
57
City of The Colony, Texas
Notes to Financial Statements
September 30, 2025
Note 11 - 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, 2025, the deferred compensation plan is not reported in the City’s financial statements.
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, 2025:
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.
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.
During the year ended September 30, 2025, the City and component units abated $5,366,274 in property taxes and
$7,404,047 in sales taxes.
120
58
City of The Colony, Texas
Notes to Financial Statements
September 30, 2025
Note 13 - Restatement
As of September 30, 2025, the City adopted GASB Statement No. 101, Compensated Absences. The provisions of
this standard modernize the types of leave that are considered a compensated absence and provides guidance
for a consistent recognition and measurement of the compensated absence liability. Therefore, compensated
absences current portion and compensated absences noncurrent portion were decreased by $2,286,589 and
$2,263,723, respectively, as of October 1, 2024. The effect of this change in accounting principle is described in
the table below.
October 1, 2024, Change in
As Previously Accounting October 1, 2024,
Reported Principle As Restated
Proprietary Funds
Water and Sewer Enterprise Fund 130,549,140$ 189,523$ 130,738,663$
Government-Wide
Governmental Activities 260,010,202 1,876,885 261,887,087
Business-Type Activities 130,549,140 189,523 130,738,663
Total Primary Government 390,559,342 2,066,408 392,625,750
Component Units
The Colony Economic Development Corporation 7,141,829 30,658 7,172,487
Total Component Units (92,500,205) 30,658 (92,469,547)
121
59
REQUIRED SUPPLEMENTARY INFORMATION
122
60
City of The Colony, Texas
Budgetary Comparison Schedule – General Fund (Exhibit B-1)
Year Ended September 30, 2025
Variance
with Final
Original Final
Actual Budget
Revenues
Taxes
Property 29,644,191$ 29,644,191$ 35,017,518$ 5,373,327$
Sales 23,549,328 23,549,328 20,245,550 (3,303,778)
Mixed beverage tax 750,000 750,000 926,739 176,739
Franchise 3,050,000 3,050,000 2,987,086 (62,914)
Licenses and permits 2,905,750 2,905,750 1,634,545 (1,271,205)
Fines and forfeitures 1,110,000 1,110,000 1,148,862 38,862
Charges for services 2,309,250 2,309,250 5,165,305 2,856,055
Intergovernmental 1,247,213 1,247,213 5,309,476 4,062,263
Grants 590,000 590,000 90,281 (499,719)
Investment income 2,350,000 2,350,000 3,356,437 1,006,437
Miscellaneous income 697,000 697,000 3,080,481 2,383,481
Total revenues 68,202,732 68,202,732 78,962,280 10,759,548
Expenditures
Current
General government 20,637,750 21,154,880 24,016,429 (2,861,549)
Economic development 21,929,424 21,929,424 23,534,525 (1,605,101)
Culture and recreation 6,097,057 6,230,478 4,791,887 1,438,591
Public works 4,975,064 5,231,505 2,356,275 2,875,230
Public safety 34,223,340 34,617,627 34,179,120 438,507
Capital outlay - 41,970 2,835,322 (2,793,352)
Debt service
Principal - - 974,235 (974,235)
Interest - - 257,103 (257,103)
Total expenditures 87,862,635 89,205,884 92,944,896 (3,739,012)
Excess (Deficiency) of Revenues
over (under) Expenditures (19,659,903) (21,003,152) (13,982,616) 7,020,536
Other Financing Sources (Uses)
Lease proceeds - - 41,742 41,742
Subscription IT proceeds - - 1,942,391 1,942,391
Transfers out (10,000) (10,000) (41,384) (31,384)
Transfers in 1,710,000 1,710,000 1,916,068 206,068
Total other financing sources (uses)1,700,000 1,700,000 3,858,817 2,158,817
Net Change in Fund Balance (17,959,903) (19,303,152) (10,123,799) 9,179,353
Fund balance, beginning 37,189,840 37,189,840 37,189,840 -
Fund balance, ending 19,229,937$ 17,886,688$ 27,066,041$ 9,179,353$
Budgeted Amounts
123
61 City of The Colony, Texas Schedule of Changes in Net Pension Liability and Related Ratios – Texas Municipal Retirement System (Exhibit B-2) Year Ended September 30, 2025 Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year EndedDecember 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31,2024202320222021202020192018201720162015Total Pension LiabilityService cost6,443,243$ 5,610,086$ 5,156,067$ 4,833,901$ 4,598,382$ 4,260,983$ 3,870,905$ 3,593,344$ 3,247,190$ 3,038,645$ Interest on total pension liability9,481,413 8,822,421 8,260,909 7,705,205 7,143,318 6,525,581 6,090,550 5,640,026 5,246,784 4,956,953 Changes of benefit terms- - - - - - - - - - Differences between expected and actual experience1,441,699 1,273,565 146,281 475,568 686,320 1,392,962 (201,099) 653,253 395,250 681,456 Change of assumptions- (354,399) - - - 469,452 - - - 1,451,967 Benefit payments/refunds of contributions(6,359,577) (5,651,226) (5,291,919) (4,594,279) (3,848,793) (3,483,246) (3,537,724) (3,164,226) (3,308,765) (3,324,791) Net change in total pension liability11,006,778 9,700,447 8,271,338 8,420,395 8,579,227 9,165,732 6,222,632 6,722,397 5,580,459 6,804,230 Total pension liability, beginning140,423,549 130,723,102 122,451,764 114,031,369 105,452,142 96,286,410 90,063,778 83,341,381 77,760,922 70,956,692 Total pension liability, ending (a)151,430,327$ 140,423,549$ 130,723,102$ 122,451,764$ 114,031,369$ 105,452,142$ 96,286,410$ 90,063,778$ 83,341,381$ 77,760,922$ Fiduciary Net PositionContributions - Employer4,943,110$ 4,450,840$ 4,080,627$ 3,861,496$ 3,509,336$ 3,330,020$ 3,044,002$ 2,825,357$ 2,343,572$ 2,336,643$ Contributions - Employee2,561,198 2,315,788 2,120,592 2,003,458 1,900,158 1,790,133 1,630,948 1,512,352 1,360,283 1,309,761 Net investment income12,894,094 12,766,249 (8,610,826) 13,461,929 7,176,504 12,447,283 (2,451,824) 9,825,153 4,466,472 96,983 Benefit payments/refunds of contributions(6,359,577) (5,651,226) (5,291,919) (4,594,279) (3,848,793) (3,483,246) (3,537,724) (3,164,226) (3,308,765) (3,324,791) Administrative expenses(82,600) (81,107) (74,437) (62,232) (46,406) (70,294) (47,376) (50,917) (50,436) (59,070) Other(1,934) (565) 88,824 426 (1,631) (2,113) (2,475) (2,581) (2,717) (2,918) Net change in fiduciary net position13,954,291 13,799,979 (7,687,139) 14,670,798 8,689,168 14,011,783 (1,364,449) 10,945,138 4,808,409 356,608 Fiduciary net position, beginning123,954,122 110,154,143 117,841,282 103,170,484 94,481,316 80,469,533 81,833,982 70,888,844 66,080,435 65,723,827 Fiduciary net position, ending (b)137,908,413$ 123,954,122$ 110,154,143$ 117,841,282$ 103,170,484$ 94,481,316$ 80,469,533$ 81,833,982$ 70,888,844$ 66,080,435$ Net pension liability (asset), ending = (a) - (b) 13,521,914$ 16,469,427$ 20,568,959$ 4,610,482$ 10,860,885$ 10,970,826$ 15,816,877$ 8,229,796$ 12,452,537$ 11,680,487$ Fiduciary net position as a percentage of total pension liability91.07% 88.27% 84.27% 96.23% 90.48% 89.60% 83.57% 90.86% 85.06% 84.98%Covered payroll36,588,516$ 33,072,876$ 30,294,165$ 28,619,902$ 27,145,113$ 25,576,127$ 23,248,678$ 21,607,602$ 19,432,616$ 18,710,868$ Net pension liability as a percentage of covered payroll36.96% 49.80% 67.90% 16.11% 40.01% 42.89% 68.03% 38.09% 64.08% 62.43%Note:The information from this schedule corresponds with the period covered as of the Plan's measurement dates of December 31. 124
62
City of The Colony, Texas
Schedule of Employer Contributions – Texas Municipal Retirement System (Exhibit B-3)
Year Ended September 30, 2025
Actual
Contribution as
Actuarially Actual Contribution a Percentage
Year Ending Determined Employer Deficiency Covered of Covered
September 30, Contribution Contribution (Excess) Payroll Payroll
2016 2,399,108$ 2,399,108$ -$ 19,236,056$ 12.47%
2017 2,723,827 2,723,827 - 19,440,612 14.01%
2018 2,998,437 2,998,437 - 22,698,203 13.21%
2019 3,247,835 3,247,835 - 24,667,551 13.17%
2020 3,477,782 3,477,782 - 26,570,811 13.09%
2021 3,770,299 3,770,299 - 28,244,747 13.35%
2022 3,861,496 3,861,496 - 30,774,816 12.55%
2023 4,080,627 4,080,627 - 32,146,158 12.69%
2024 4,934,490 4,934,490 - 35,912,284 13.74%
2025 5,533,309 5,533,309 - 38,743,439 14.28%
Note:The information from this schedule corresponds with the City's fiscal years ended
September 30.
125
63 City of The Colony, Texas Schedule of Changes in Total OPEB Liability and Related Ratios – Supplemental Death Benefits Plan (Exhibit B-4) Year Ended September 30, 2025 Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year EndedDecember 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31,20242023202220212020201920182017Total OPEB LiabilityService cost47,565$ 39,694$ 81,794$ 71,550$ 57,005$ 40,922$ 41,848$ 32,411$ Interest on total OPEB liability39,096 37,468 25,390 26,044 29,359 30,875 28,018 27,153 Changes of benefit terms- - - - - - - - Differences between expected and actual experience(7,194) 6,021 (43,826) (46,639) (17,505) (11,620) (15,239) - Change of assumptions(55,609) 50,802 (473,215) 42,215 171,209 172,459 (62,382) 69,501 Benefit payments(25,612) (26,463) (21,206) (20,034) (5,429) (5,115) (6,975) (4,322) Net change in total OPEB liability(1,754) 107,522 (431,063) 73,136 234,639 227,521 (14,730) 124,743 Total OPEB liability, beginning1,026,050 918,528 1,349,591 1,276,455 1,041,816 814,295 829,025 704,282 Total OPEB liability, ending1,024,296$ 1,026,050$ 918,528$ 1,349,591$ 1,276,455$ 1,041,816$ 814,295$ 829,025$ Covered payroll36,588,516$ 33,072,876$ 33,072,876$ 30,294,165$ 27,145,113$ 25,576,127$ 23,248,678$ 21,607,602$ Total OPEB liability as a percentage of covered payroll2.80% 3.10% 2.78%4.45%4.70%4.07%3.50%3.84%Note:The information from this schedule corresponds with the period covered as of the Plan's measurement dates of December 31. Plan information was unavailable prior to 2017. Ten years will ultimately be displayed. No assets are accumulated in a trust as defined by GASB 75. Benefits are on a pay as you go basis. 126
64
City of The Colony, Texas
Notes to Required Supplementary Information
Year Ended September 30, 2025
Note A: Net Pension Liability – Texas Municipal Retirement System
Assumptions
The following methods and assumptions were used to determine contribution rates:
Valuation date Actuarially determined contribution rates are calculated as of December 31
and become effective in January 13 months later.
Actuarial cost method Entry age normal
Amortization method Level percentage of payroll, closed
Remaining amortization period 21 years
Asset valuation method 10-year smoothed market; 12% soft corridor
Inflation 2.50%
Salary increases 3.60% to 11.85%, including inflation
Investment rate of return 6.75%
Retirement age Experience-based table of rates that are specific to the City’s plan of
benefits. Last updated for the 2023 valuation pursuant to an experience
study of the period ending 2022.
Mortality Post-retirement: 2019 Municipal Retirees of Texas Mortality Tables. Male
rates are multiplied by 103% and female rates are multiplied by 105%.
The rates are projected on a fully generational basis by the most recent
Scale MP-2021 with immediate convergence.
Pre-retirement: PUB(10) mortality tables, with the Public Safety table
used for males and the 100% of the General Employee table used for
females. The rates are projected on a fully generational basis by the most
recent Scale MP-2021 with immediate convergence.
Notes: There were no benefit changes during the year.
127
65
City of The Colony, Texas
Notes to Required Supplementary Information
Year Ended September 30, 2025
Note B: Total OPEB Liability – Texas Municipal Retirement System
Summary of actuarial assumptions:
Actuarial cost method Entry age normal
Inflation 2.50%
Discount rate* 4.08%
Salary increases 3.60% to 11.85%, including inflation
Retirees’ share- benefit-related costs $0
Administrative expenses All administrative expenses are paid through the Pension Trust and accounted
for under reporting requirements under GASB Statement No. 68.
Mortality rate- service retirees 2019 Municipal Retirees of Texas Mortality Tables. Male rates are multiplied by
103% and female rates are multiplied by 105%. The rates are projected on a
fully generational basis by the most recent Scale MP-2021 with immediate
convergence.
Mortality rate- disabled retirees 2019 Municipal Retirees of Texas Mortality Tables with a 4 year set-forward for
males and a 3 year set-forward for females. In addition, a 3.5% and 3%
minimum mortality rate will be applied to reflect the impairment for younger
members who become disabled for males and females, respectively. The rates
are projected on a fully generational basis by the most recent Scale MP-2021
with immediate convergence to account for future mortality improvements
subject to the floor.
The actuarial assumptions used in the December 31 valuation were based on the results of an actuarial experience study for
the period ended December 31, 2022.
* The discount rate was based on the Fidelity Index’s “20-Year Municipal GO AA Index” as of December 31, 2024.
Note C: Budgetary Process
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.
2. 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.
128
66
City of The Colony, Texas
Notes to Required Supplementary Information
Year Ended September 30, 2025
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, 2025:
General Government ($2,131,742)
Economic Development ($783,264)
Capital Outlay ($2,793,352)
Debt Service ($1,231,338)
129
67
COMBINING AND INDIVIDUAL FUND FINANCIAL
STATEMENTS AND SCHEDULES
130
68
City of The Colony, Texas
Budgetary Comparison Schedule – Debt Service Fund (Exhibit C-1)
Year Ended September 30, 2025
Variance
with Final
Original Final
Actual Budget
Revenues
Property taxes 11,183,040$ 11,183,040$ 10,423,272$ (759,768)$
Investment income 500,000 500,000 546,432 46,432
Total revenues 11,683,040 11,683,040 10,969,704 (713,336)
Expenditures
Debt service
Principal 4,635,693 4,635,693 7,512,794 (2,877,101)
Interest 2,047,534 2,047,534 3,436,822 (1,389,288)
Total expenditures 6,683,227 6,683,227 10,949,616 (4,266,389)
Excess (Deficiency) of Revenues
over (under) Expenditures 4,999,813 4,999,813 20,088 (4,979,725)
Other Financing Sources (Uses)
Transfer out (1,600,000) (1,600,000) (1,600,000) -
Total other financing sources (uses) (1,600,000) (1,600,000) (1,600,000) -
Net Change in Fund Balance 3,399,813 3,399,813 (1,579,912) (4,979,725)
Fund Balance -
October 1 (Beginning)7,124,759 7,124,759 7,124,759 -
Fund Balance -
September 30 (Ending)10,524,572$ 10,524,572$ 5,544,847$ (4,979,725)$
Budgeted Amounts
131
69
City of The Colony, Texas
Non-Major Governmental Funds
Year Ended September 30, 2025
Special Revenue Funds
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.
Consolidated to Public Safety Fund.
Federal Seized Fund – To account for funds granted to the police department in a revenue sharing agreement with the
federal government. Consolidated to Public Safety Fund.
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. Consolidated to Public Safety Fund.
Storm Water Utility Fund – To account for the revenue and expenses associated with the drainage projects within the City.
Public Safety Fund – To account for the revenue and expenses associated with various funds granted for public safety
initiatives.
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. Consolidated to Public Safety Fund.
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. Consolidated to Public Safety Fund.
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 $1 Add-On Program and the Recycling Rebate Program.
This money is restricted for social and community services, public safety citizen programs and beautification projects.
Public Improvement District (PID) No.1 – To account for revenues and expenditures related to the City of The Colony Public
Improvement District No. 1.
Trinity North Medical – To account for revenues and expenditures related to the City of The Colony renting out space in
their building that is externally restricted.
Juvenile Case – To account for revenues and expenditures related to the City of The Colony’s juvenile court. Consolidated to
Public Safety Fund.
132
70 City of The Colony, Texas Combining Balance Sheet – Nonmajor Governmental Funds (Exhibit C-2) September 30, 2025 Hotel /PoliceFederalChildStormPublicLakeSpecialMotelForfeitedSeizedSafetyWaterSafetyParksEventsTaxesFundFundFundUtilityFundAssetsCash and cash equivalents2,706,921$ 237,445$ 3,696,765$ -$ -$ -$ 1,648,371$ 794,211$ Receivables (net of allowance)Hotel/motel taxes- - 491,975 - - - - - Leases1,541,691- - - - - - - Miscellaneous101,100- - - - - - 53,279 Prepaid items- - 12,909 - - - - - Total assets4,349,712$ 237,445$ 4,201,649$ -$ -$ -$ 1,648,371$ 847,490$ Liabilities Accounts payable6,004$ 56,457$ 83,443$ -$ -$ -$ -$ 40$ Accrued liabilities6164,31613,852- - - - - Retainage payable29,801- - - - - - - Due to other funds- - - - - - - - Total liabilities36,421 60,773 97,295 - - - - 40 Deferred Inflows of ResourcesLease related1,450,655- - - - - - - Unavailable revenue- - 201,465- - - - - Total deferred inflows of resources1,450,655 - 201,465 - - - - - Fund BalancesNonspendable- - 12,909 - - - - - Restricted - - 3,889,980 - - - 1,648,371 847,450 Committed2,862,636 176,672 - - - - - - Total fund balances2,862,636 176,672 3,902,889 - - - 1,648,371 847,450 Total liabilities, deferred inflows of resources and fund balances4,349,712$ 237,445$ 4,201,649$ -$ -$ -$ 1,648,371$ 847,490$ 133
71 City of The Colony, Texas Combining Balance Sheet – Nonmajor Governmental Funds (Exhibit C-2) - continued September 30, 2025 Total NonmajorKeepSpecial Court Court The Colony Citizens Trinity North Juvenile RevenueSecurity Technology Beautiful Donations PID No. 1 Medical Case Funds AssetsCash and cash equivalents -$ -$ 14,699$ 11,128$ 1,121,450$ -$ -$ 10,230,990$ Receivables (net of allowance)Hotel/motel taxes - - - - - - - 491,975 Leases - - - - - - - 1,541,691 Miscellaneous - - - - - - - 154,379 Prepaid items - - - - - - - 12,909 Total assets -$ -$ 14,699$ 11,128$ 1,121,450$ -$ -$ 12,431,944$ Liabilities Accounts payable -$ -$ 3,899$ -$ 38,364$ -$ -$ 188,207$ Accrued salaries - - - - - - - 18,784 Other liabilities - - - - - - - 29,801 Due to other funds - - - - - - - - Total liabilities - - 3,899 - 38,364 - - 236,792 Deferred Inflows of ResourcesLease related- - - - - - - 1,450,655 Unavailable revenue- - - - - - - 201,465 Total deferred inflows of resources- - - - - - - 1,652,120 Fund BalancesNonspendable- - - - - - - 12,909 Restricted - - - 11,128 1,083,086 - - 7,480,015 Committed- - 10,800 - - - - 3,050,108 Total fund balances- - 10,800 11,128 1,083,086 - - 10,543,032 Total liabilities, deferred inflows of resources and fund balances-$ -$ 14,699$ 11,128$ 1,121,450$ -$ -$ 12,431,944$ 134
72 City of The Colony, Texas Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Governmental Funds (Exhibit C-3) Year Ended September 30, 2025 Hotel /PoliceFederalChildStormPublicLakeSpecialMotelForfeitedSeizedSafetyWaterSafetyParksEventsTaxesFundFundFundUtilityFundRevenuesTaxes Hotel occupancy tax-$ -$ 2,332,854$ -$ -$ -$ -$ -$ Licenses and permits392,814- - - - - - - Fines & forfeitures- - - - - - - 140,409 Charges for services1,859- - - - - 1,340,174 - Gifts and contributions- - - - - - - - Grants- - - - - - - 55,020 Investment income38,130- - - - - - - Miscellaneous income405,02477,337339,836 - - - - 19,180 Total revenues837,827 77,337 2,672,690 - - - 1,340,174 214,609 ExpendituresCurrentGeneral government- - - - - - - - Culture and recreation247,834701,922 1,938,762- - - - - Public works- - - - - - - - Public safety- - - - - - - 85,823 Capital outlay436,647- - - - - - - Total expenditures684,481 701,922 1,938,762 - - - - 85,823 Excess (Deficiency) of Revenues over (under) Expenditures153,346 (624,585) 733,928 - - - 1,340,174 128,786 Other Financing Sources (Uses)Transfers out(50,000)- (700,000) (26,787) (12,935) (97,499) (3,156,534) (18,794) Transfers in- 700,000- - - - - 737,458 Total Other Financing Sources (Uses)(50,000) 700,000 (700,000) (26,787) (12,935) (97,499) (3,156,534) 718,664 Net Change in Fund Balance103,346 75,415 33,928 (26,787) (12,935) (97,499) (1,816,360) 847,450 Fund Balance - October 1 (Beginning)2,759,290 101,257 3,868,961 26,787 12,935 97,499 3,464,731 - Fund Balance - September 30 (Ending)2,862,636$ 176,672$ 3,902,889$ -$ -$ -$ 1,648,371$ 847,450$ 135
73 City of The Colony, Texas Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Governmental Funds (Exhibit C-3) - continued Year Ended September 30, 2025 TotalNonmajorKeepSpecial Court Court The Colony Citizens Trinity North Juvenile RevenueSecurity Technology Beautiful Donations PID No. 1 Medical CaseFunds RevenuesTaxesHotel occupancy tax -$ -$ -$ -$ -$ -$ -$ 2,332,854$ Licenses and permits - - - - - - - 392,814 Fines & forfeitures - - - - - - - 140,409 Charges for services - - - - 1,100,261 - - 2,442,294 Gifts and contributions - - - 234 - - - 234 Grants - - - - - - - 55,020 Investment income - - - - 69,661 - - 107,791 Miscellaneous income - - 274 - - 97 - 841,748 Total revenues - - 274 234 1,169,922 97 - 6,313,164 ExpendituresCurrentGeneral government - - - - 942,086 - - 942,086 Culture and recreation - - - - - - - 2,888,518 Public works- - 13,400 - - - - 13,400 Public safety- - - - - - - 85,823 Capital outlay- - - - - - - 436,647 Total expenditures- - 13,400 - 942,086 - - 4,366,474 Excess (Deficiency) of Revenues over (under) Expenditures- - (13,126) 234 227,836 97 - 1,946,690 Other Financing Sources (Uses)Transfers out(337,732) (35,593) - - - (157,687) (218,118) (4,811,679) Transfers in- - 10,000 - - - - 1,447,458 Total Other Financing Sources (Uses)(337,732) (35,593) 10,000 - - (157,687) (218,118) (3,364,221) Net Change in Fund Balance(337,732) (35,593) (3,126) 234 227,836 (157,590) (218,118) (1,417,531) Fund Balance - October 1 (Beginning)337,732 35,593 13,926 10,894 855,250 157,590 218,118 11,960,563 Fund Balance - September 30 (Ending)-$ -$ 10,800$ 11,128$ 1,083,086$ -$ -$ 10,543,032$ 136
74
City of The Colony, Texas
Budgetary Comparison Schedule – Lake Parks Fund (Exhibit C-4)
Year Ended September 30, 2025
Variance
with Final
Original Final
Actual Budget
Revenues
Licenses and permits 304,000$ 304,000$ 392,814$ 88,814$
Charges for services 1,000 1,000 1,859 859
Investment income - - 38,130 38,130
Miscellaneous income 222,000 222,000 405,024 183,024
Total revenues 527,000 527,000 837,827 310,827
Expenditures
Current
Culture and recreation 233,500 282,650 247,834 34,816
Capital outlay 1,023,072 1,003,072 436,647 566,425
Total expenditures 1,256,572 1,285,722 684,481 601,241
Excess (Deficiency) of Revenues
over (under) Expenditures (729,572) (758,722) 153,346 912,068
Other Financing Sources (Uses)
Transfers out (50,000) (50,000) (50,000) -
Total Other Financing Sources (Uses)(50,000) (50,000) (50,000) -
Net Change in Fund Balance (779,572) (808,722) 103,346 912,068
Fund Balance -
October 1 (Beginning)2,759,290 2,759,290 2,759,290 -
Fund Balance -
September 30 (Ending)2,029,718$ 1,950,568$ 2,862,636$ 912,068$
Budgeted Amounts
137
75
City of The Colony, Texas
Budgetary Comparison Schedule – Special Events Fund (Exhibit C-5)
Year Ended September 30, 2025
Variance
with Final
Original Final
Actual Budget
Revenues
Miscellaneous income 72,200$ 72,200$ 77,337$ 5,137$
Total revenues 72,200 72,200 77,337 5,137
Expenditures
Current
Culture and recreation 694,388 716,388 701,922 14,466
Total expenditures 694,388 716,388 701,922 14,466
Excess (Deficiency) of Revenues
over Expenditures (622,188) (644,188) (624,585) 19,603
Other Financing Sources (Uses)
Transfers in 700,000 700,000 700,000 -
Total Other Financing
Sources (Uses)700,000 700,000 700,000 -
Net Change in Fund Balance 77,812 55,812 75,415 19,603
Fund Balance -
October 1 (Beginning)101,257 101,257 101,257 -
Fund Balance -
September 30 (Ending)179,069$ 157,069$ 176,672$ 19,603$
Budgeted Amounts
138
76
City of The Colony, Texas
Budgetary Comparison Schedule – Hotel/Motel Taxes Fund (Exhibit C-6)
Year Ended September 30, 2025
Variance
with Final
Original Final
Actual Budget
Revenues
Taxes
Hotel occupancy tax 2,010,000$ 2,010,000$ 2,332,854$ 322,854$
Miscellaneous income - - 339,836 339,836
Total revenues 2,010,000 2,010,000 2,672,690 662,690
Expenditures
Current
Culture and recreation 1,852,655 1,852,655 1,938,762 (86,107)
Total expenditures 1,852,655 1,852,655 1,938,762 (86,107)
Excess (Deficiency) of Revenues
over Expenditures 157,345 157,345 733,928 576,583
Other Financing Sources (Uses)
Transfers out (700,000) (700,000) (700,000) -
Total Other Financing
Sources (Uses) (700,000) (700,000) (700,000) -
Net Change in Fund Balance (542,655) (542,655) 33,928 576,583
Fund Balance -
October 1 (Beginning) 3,868,961 3,868,961 3,868,961 -
Fund Balance -
September 30 (Ending) 3,326,306$ 3,326,306$ 3,902,889$ 576,583$
Budgeted Amounts
139
77
City of The Colony, Texas
Budgetary Comparison Schedule – Storm Water Utility Fund (Exhibit C-7)
Year Ended September 30, 2025
Variance
with Final
Original Final
Actual Budget
Revenues
Charges for services 1,300,000$ 1,300,000$ 1,340,174$ 40,174$
Total revenues 1,300,000 1,300,000 1,340,174 40,174
Expenditures
Current
Public works - - - -
Total expenditures - - - -
Excess (Deficiency) of Revenues
over Expenditures 1,300,000 1,300,000 1,340,174 40,174
Other Financing Sources (Uses)
Transfers out (150,000) (150,000) (3,156,534) (3,006,534)
Total Other Financing
Sources (Uses) (150,000) (150,000) (3,156,534) (3,006,534)
Net Change in Fund Balance 1,150,000 1,150,000 (1,816,360) (2,966,360)
Fund Balance -
October 1 (Beginning) 3,464,731 3,464,731 3,464,731 -
Fund Balance -
September 30 (Ending) 4,614,731$ 4,614,731$ 1,648,371$ (2,966,360)$
Budgeted Amounts
140
78
City of The Colony, Texas
Budgetary Comparison Schedule – Public Safety Fund (Exhibit C-8)
Year Ended September 30, 2025
Variance
with Final
Original Final
Actual Budget
Revenues
Fines & forfeitures 86,000$ 86,000$ 140,409$ 54,409$
Grants 50,000 50,000 55,020 5,020
Miscellaneous income - - 19,180 19,180
Total revenues 136,000 136,000 214,609 78,609
Expenditures
Current
Public safety 76,300 92,220 85,823 6,397
Total expenditures 76,300 92,220 85,823 6,397
Excess (Deficiency) of Revenues
over Expenditures 59,700 43,780 128,786 85,006
Other Financing Sources (Uses)
Transfers out (10,000) (10,000) (18,794) (8,794)
Transfers in - - 737,458 737,458
Total Other Financing
Sources (Uses)(10,000) (10,000) 718,664 728,664
Net Change in Fund Balance 49,700 33,780 847,450 813,670
Fund Balance -
October 1 (Beginning)- - - -
Fund Balance -
September 30 (Ending)49,700$ 33,780$ 847,450$ 813,670$
Budgeted Amounts
141
79
City of The Colony, Texas
Discretely Presented Component Units
September 30, 2025
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.
142
80
City of The Colony, Texas
Combining Balance Sheet – Component Units (Exhibit F-1)
September 30, 2025
Total
The Colony The Colony The Colony Discretely
Economic Community Local Presented
Development Development Development Component
Corporation Foundation Corporation Units
Assets
Cash and cash equivalents 24,955,421$ 10,994,432$ 7,269,378$ 43,219,231$
Receivables (net of allowance)
Sales taxes 1,650,466 1,650,466 - 3,300,932
Restricted assets 8,411,296 8,411,079 11,221,290 28,043,665
Due from other governments - - 1,575,409 1,575,409
Total assets 35,017,183$ 21,055,977$ 20,066,077$ 76,139,237$
Liabilities
Accounts payable 44,065$ 5,148$ -$ 49,213$
Accrued liabilities 219,187 205,144 - 424,331
Total liabilities 263,252 210,292 - 473,544
Fund Balances
Restricted for construction 2,757,162 - - 2,757,162
Unassigned 31,996,769 20,845,685 20,066,077 72,908,531
Total fund balances 34,753,931 20,845,685 20,066,077 75,665,693
Total liabilities and fund balances 35,017,183$ 21,055,977$ 20,066,077$ 76,139,237$
143
81
City of The Colony, Texas
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position – Component Units
(Exhibit F-2)
Year Ended September 30, 2025
The Colony The Colony The Colony
Economic Community Local
Development Development Development
Corporation Foundation Corporation
Total Fund Balances - Component Units (CU) 34,753,931$ 20,845,685$ 20,066,077$
Amounts reported for CU in the statement of net position are different because:
Capital assets used in CU are not current financial resources and
therefore are not reported in the balance sheet. 7,226,312 - 22,321,911
Prepaid insurance costs associated with the issuance of bonds are recorded
as expenditures at the time of issuance in the CU financial statements. In
the statement of net position, these costs are recorded as an asset and
amortized into expense over the life of the debt. - - 2,424,046
Included in liabilities is the recognition of the CU's net pension liability, total
OPEB liability and the related deferred inflows and outflows of resources:
Net pension liability (127,974) - -
Total OPEB liability (9,694) - -
Deferred outflows of resources - pension 59,076 - -
Deferred outflows of resources - OPEB 1,324 - -
Deferred inflows of resources - pension (16,053) - -
Deferred inflows of resources - OPEB (3,479) - -
Some liabilities, including bonds payable and compensated absences, are
not due and payable in the current year and therefore are not reported
in the CU's financial stateents:
Bonds payable (30,315,000) (26,540,000) (129,065,000)
Unamortized discount on bonds payable 1,206,834 1,206,834 20,776
Compensated absences (21,908) - -
Deferred charge on refunding - - 258,227
Accrued interest is not due and payable in the current year and therefore
is not reported as a liability in the CU's financial statements. (975,559) (958,588) (3,121,471)
Net Position of Component Units 11,777,810$ (5,446,069)$ (87,095,434)$
144
82
City of The Colony, Texas
Statement of Revenues, Expenditures, and Changes in Fund Balance – Component Units (Exhibit F-3)
Year Ended September 30, 2025
Total
The Colony The Colony The Colony Discretely
Economic Community Local Presented
Development Development Development Component
Corporation Foundation Corporation Units
Revenues
Taxes
Sales 9,859,575$ 9,859,575$ -$ 19,719,150$
Intergovernmental - - 12,344,444 12,344,444
Investment income 1,258,646 887,304 309,054 2,455,004
Miscellaneous income 777,318 778,421 10,000 1,565,739
Total revenues 11,895,539 11,525,300 12,663,498 36,084,337
Expenditures
Current
Economic development 5,097,379 6,797,340 1,726,754 13,621,473
Capital outlay 57,304 - - 57,304
Debt service
Principal retirement 1,000,000 530,000 3,370,000 4,900,000
Interest and fiscal charges 2,076,877 1,935,725 6,518,117 10,530,719
Total expenditures 8,231,560 9,263,065 11,614,871 29,109,496
Excess (Deficiency) of Revenues
over (under) Expenditures 3,663,979 2,262,235 1,048,627 6,974,841
Net Change in Fund Balance 3,663,979 2,262,235 1,048,627 6,974,841
Fund Balance - October 1 (Beginning) 31,089,952 18,583,450 19,017,450 68,690,852
Fund Balance - September 30 (Ending) 34,753,931$ 20,845,685$ 20,066,077$ 75,665,693$
145
83
City of The Colony, Texas
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balance of Governmental
Funds to the Statement of Activities – Component Units (Exhibit F-4)
Year Ended September 30, 2025
The Colony The Colony The Colony
Economic Community Local
Development Development Development
Corporation Foundation Corporation
Net Change in Fund Balances - Component Units (CU) 3,663,979$ 2,262,235$ 1,048,627$
Amounts reported for CU in the statement of activities are different because:
The CU report capital outlays as expenditures. However, in the statement
of activities, the cost of those assets is capitalized and depreciated over the
estimated useful lives:
Capital outlay 57,304 - -
Depreciation expense (72,788) - -
The issuance of long-term debt (e.g. bonds) provides current financial
resources of funds, while the repayment of the principal of long-term debt
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 1,000,000 530,000 3,370,000
Current year amortization of the costs of discounts on debt issuance and
deferred charges on refundings do not require the use of current financial
resources; and therefore, not reported as expenditures in governmental
funds:
Amortization of discounts on debt issuance (67,046) (67,046) (2,000)
Amortization of deferred charges on refundings - - (46,081)
Amortization of prepaid insurance - - (110,185)
The payment of compensated absences payable is an expenditure in the
governmental funds when paid, but the net change in the accrued liability
is recorded to the statement of activities. (356) - -
Current year changes in accrued interest payable do not require the use of
current financial resources; therefore, are not reported as expenditures in the
CU financial statements. 20,663 18,550 63,457
Changes in the deferred outflows of resources, deferred inflows of resources,
net pension liability, and total OPEB liability must be recorded as expenses:
Net pension liability 38,630 54,737 -
Total OPEB liability 685 3,410 -
Deferred outflows of resources - pension (22,415) (26,774) -
Deferred outflows of resources - OPEB (761) (685) -
Deferred inflows of resources - pension (13,237) 925 -
Deferred inflows of resources - OPEB 665 1,361 -
Change in Net Position of Component Units 4,605,323$ 2,776,713$ 4,323,818$
146
84
STATISTICAL SECTION
147
85
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 and
Economic Indicators
These schedules offer demographic and economic
indicators to help the reader understand the environment
within which the City’s financial activities take place.
14-16
Operating
Information
These schedules contain service and infrastructure data to
help 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
148
86 City of The Colony, Texas Net Position by Component (Accrual Basis of Accounting) Last Ten Fiscal Years (Unaudited) TABLE 12016 2017 2018 2019 2020 2021 2022 2023 2024 2025Governmental activitiesNet investment in capital assets 216,941,085$ 204,138,146$ 193,724,440$ 197,783,498$ 198,340,131$ 200,374,394$ 204,593,915$ 205,888,249$ 211,834,115$ 212,965,547$ Restricted for:Debt service 1,826,579 1,027,528 902,127 863,999 1,802,592 3,183,352 5,124,388 5,296,697 6,878,981 4,134,305Construction 367,397 367,397 - - - - - - - - Capital Projects 791,860 1,729,804 4,716,830 4,538,583 6,866,640 4,130,506 242,568 9,287,925 809,584 5,654,304Specific Programs 1,264,226 1,684,065 2,313,497 3,694,856 3,659,079 5,405,009 9,302,645 9,096,902 10,006,842 8,233,792Unrestricted 17,693,194 8,666,844 8,704,028 5,535,911 8,170,872 10,102,289 15,069,535 29,088,361 30,480,680 18,981,161Total governmental activities net position238,884,341$ 217,613,784$ 210,360,922$ 212,416,847$ 218,839,314$ 223,195,550$ 234,333,051$ 258,658,134$ 260,010,202$ 249,969,109$ Business-type activitiesInvested in capital assetsNet investment in capital assets 25,654,373$ 97,282,865$ 103,990,659$ 103,881,697$ 105,088,143$ 105,104,266$ 105,648,298$ 105,513,597$ 108,929,168$ 114,245,912$ Restricted for:Capital Projects 1,413,437 2,323,551 2,482,944 2,039,020 1,704,315 1,074,088 1,358,869 952,104 2,565,461 2,277,964Unrestricted 17,934,272 2,128,657 4,887,549 7,666,343 6,525,997 6,542,891 7,990,465 11,523,144 19,054,511 24,667,144Total business-type activities net position45,002,082$ 101,735,073$ 111,361,152$ 113,587,060$ 113,318,455$ 112,721,245$ 114,997,632$ 117,988,845$ 130,549,140$ 141,191,020$ Primary governmentInvested in capital assetsNet investment in capital assets 242,595,458$ 301,421,011$ 297,715,099$ 301,665,195$ 303,428,274$ 305,478,660$ 310,242,213$ 311,401,846$ 320,763,283$ 327,211,459$ Restricted for:Debt service 1,826,579 1,027,528 902,127 863,999 1,802,592 3,183,352 5,124,388 5,296,697 6,878,981 4,134,305 Construction367,397 367,397 - - - - - - - - Capital Projects2,205,297 4,053,355 7,199,774 6,577,603 8,570,955 5,204,594 1,601,437 10,240,029 3,375,045 7,932,268 Specific Programs1,264,226 1,684,065 2,313,497 3,694,856 3,659,079 5,405,009 9,302,645 9,096,902 10,006,842 8,233,792 Unrestricted35,627,466 10,795,501 13,591,577 13,202,254 14,696,869 16,645,180 23,060,000 40,611,505 49,535,191 43,648,305 Total primary governmental net position283,886,423$ 319,348,857$ 321,722,074$ 326,003,907$ 332,157,769$ 335,916,795$ 349,330,683$ 376,646,979$ 390,559,342$ 391,160,129$ Source: Annual Comprehensive Financial Report- Exhibit A-1Note: 2024 restated for change in accounting principle (GASB 101).Fiscal YearCITY OF THE COLONY, TEXASNET ASSETS BY COMPONENTACCRUAL BASIS OF ACCOUNTINGLAST TEN FISCAL YEARS (UNAUDITED)149
87 City of The Colony, Texas Changes in Net Position (Accrual Basis of Accounting) Last Ten Fiscal Years (Unaudited) TABLE 22016 2017 2018 2019 2020 2021 2022 2023 2024 2025ExpensesGovernmental activities:General government11,225,704$ 13,083,945$ 17,442,292$ 15,928,203$ 14,646,729$ 15,835,564$ 15,353,052$ 11,329,886$ 18,523,136$ 30,077,791$ Economic development- - - - - - - - - 23,534,525 Public safety17,950,628 19,078,137 19,917,944 24,524,067 24,600,147 25,340,611 26,743,262 31,659,259 33,148,673 39,113,883 Public works6,601,440 33,589,099 15,129,445 9,100,156 8,179,035 10,425,482 11,016,099 11,679,662 14,521,855 11,603,066 Culture and recreation5,171,748 5,504,249 6,011,423 6,377,301 5,979,977 7,818,786 7,391,239 7,786,848 8,504,034 8,679,083 Interest on Long-term Debt1,390,574 1,731,842 1,729,008 2,254,447 1,717,586 1,825,404 3,087,504 1,733,621 1,447,788 5,181,255 Total governmental activities expenses42,340,094 72,987,272 60,230,112 58,184,174 55,123,474 61,245,847 63,591,156 64,189,276 76,145,486 118,189,603 Business-type activities:Water and sewer16,750,973$ 19,040,918$ 19,670,658$ 20,447,636$ 23,452,375$ 27,240,190$ 26,625,071$ 27,049,782$ 29,933,931$ 29,961,104$ Total business-type activities expenses16,750,973 19,040,918 19,670,658 20,447,636 23,452,375 27,240,190 26,625,071 27,049,782 29,933,931 29,961,104 Total primary government expenses59,091,067$ 92,028,190$ 79,900,770$ 78,631,810$ 78,575,849$ 88,486,037$ 90,216,227$ 91,239,058$ 106,079,417$ 148,150,707$ Program RevenuesGovernmental activities:Charges for Services:General government3,608,782 1,927,505 2,389,337 2,655,534 2,354,343 3,273,887 2,469,376 3,170,909 3,558,535 7,626,473 Public safety1,546,836 1,643,454 1,966,757 1,906,360 1,785,388 2,062,419 2,199,583 2,153,663 866,841 1,226,523 Public works2,213,005 2,292,974 2,245,868 2,045,067 1,790,935 1,558,430 2,819,164 2,030,194 3,350,243 3,014,517 Culture and recreation764,819 813,238 821,582 859,582 450,878 888,746 1,097,542 1,119,758 443,974 392,814 Operating grants and contributions3,268,620 2,641,513 103,553 1,846,995 2,779,572 352,792 723,463 894,411 745,364 5,309,476 Capital grants and contributions25,670,242 10,303,953 10,158,807 5,869,468 5,086,196 6,233,192 4,821,561 14,545,732 11,841,212 11,269,848 Total governmental activities program revenues37,072,304 19,622,637 17,685,904 15,183,006 14,247,312 14,369,466 14,130,689 23,914,667 20,806,169 28,839,651 Business-type activities:Charges for Services:Water and sewer15,959,047 17,724,046 20,009,706 18,885,913 20,656,614 22,386,290 25,610,329 27,426,435 29,399,479 29,855,805Operating grants and contributions307,161 306,545 - - - - - - - - Capital grants and contributions6,426,313 53,449,568 3,622,560 2,663,115 2,283,690 3,836,581 2,929,119 1,025,239 6,954,214 5,562,677 Total business-type activities program revenues22,692,521 71,480,159 23,632,266 21,549,028 22,940,304 26,222,871 28,539,448 28,451,674 36,353,693 35,418,482 Total primary government program revenues59,764,825$ 91,102,796$ 41,318,170$ 36,732,034$ 37,187,616$ 40,592,337$ 42,670,137$ 52,366,341$ 57,159,862$ 64,258,133$ Net (Expenses) RevenuesGovernmental activities(5,267,790) (53,364,635) (42,544,208) (43,001,168) (40,876,162) (46,876,381) (49,460,467) (40,274,609) (55,339,317) (89,349,952) Business-type activities5,941,548 52,439,241 3,961,608 1,101,392 (512,071) (1,017,319) 1,914,377 1,401,892 6,419,762 5,457,378 Total primary government net expenses673,758$ (925,394)$ (38,582,600)$ (41,899,776)$ (41,388,233)$ (47,893,700)$ (47,546,090)$ (38,872,717)$ (48,919,555)$ (83,892,574)$ Source: Annual Comprehensive Financial Report - Exhibit A-2CITY OF THE COLONY, TEXASCHANGES IN NET POSITIONACCRUAL BASIS OF ACCOUNTINGLAST TEN FISCAL YEARS (UNAUDITED)Fiscal Year150
88 City of The Colony, Texas Changes in Net Position (Accrual Basis of Accounting) - continued Last Ten Fiscal Years (Unaudited) 2016201720182019202020212022202320242025General Revenuesand Other Changes in Net PositionGovernmental activities:Taxes:Property taxes21,204,646$ 24,719,070$ 27,584,526$ 31,092,818$ 34,456,249$ 36,510,300$ 38,701,240$ 37,597,459$ 34,615,211$ 45,551,241$ Sales taxes5,736,997 6,357,581 7,100,104 8,090,511 7,442,947 9,721,676 11,426,569 11,812,142 9,990,559 21,172,289 Franchise taxes2,527,792 2,609,706 2,705,950 2,737,190 2,765,433 2,517,283 2,873,419 2,911,718 5,159,631 2,987,086 Hotel motel taxes668,011 1,275,280 1,525,722 1,532,041 849,664 1,044,987 1,937,274 2,356,975 2,538,159 2,332,854 Vehicle Tax- - - - - - - - 925,917 - Penalties and interest294,798 125,543 133,895 108,472 114,898 96,423 106,926 152,526 - - Interest on investments102,126 256,672 729,690 1,075,171 429,498 26,889 456,215 4,202,359 4,504,997 4,010,660 Miscellaneous792,311 838,429 1,521,033 895,376 1,236,307 1,715,059 5,196,325 5,666,513 3,356,911 3,925,239 Transfers6,742,192 (4,088,203) (5,397,569) (474,486) 3,633 (400,000) (100,000) (100,000) (4,400,000) (2,547,395) Total governmental activities38,068,873 32,094,078 35,903,351 45,057,093 47,298,629 51,232,617 60,597,968 64,599,692 56,691,385 77,431,974 Business-type activities:Interest on investments88,041 205,547 356,102 650,030 247,099 20,069 262,050 1,183,203 1,740,533 2,447,584 Miscellaneous- - - - - - - 306,118 - - Transfers(6,742,192) 4,088,203 5,397,569 474,486 (3,633) 400,000 100,000 100,000 4,400,000 2,547,395 Total business-type activities(6,654,151) 4,293,750 5,753,671 1,124,516 243,466 420,069 362,050 1,589,321 6,140,533 4,994,979 Total primary government31,414,722 36,387,828 41,657,022 46,181,609 47,542,095 51,652,686 60,960,018 66,189,013 62,831,918 82,426,953 Change in Net PositionGovernmental activities32,801,083 (21,270,557) (6,640,857) 2,055,925 6,422,467 4,356,236 11,137,501 24,325,083 1,352,068 (11,917,978) Business-type activities(712,603) 56,732,991 9,715,279 2,225,908 (268,605) (597,250) 2,276,427 2,991,213 12,560,295 10,452,357 Total primary government32,088,480$ 35,462,434$ 3,074,422$ 4,281,833$ 6,153,862$ 3,758,986$ 13,413,928$ 27,316,296$ 13,912,363$ (1,465,621)$ Source: Annual Comprehensive Financial Report - Exhibit A-2Fiscal YearCITY OF THE COLONY, TEXASCHANGES IN NET POSITIONACCRUAL BASIS OF ACCOUNTINGLAST TEN FISCAL YEARS (UNAUDITED)151
89 City of The Colony, Texas Fund Balances, Governmental Funds (Modified Accrual Basis of Accounting) Last Ten Fiscal Years (Unaudited) TABLE 32016 2017 2018 2019 2020 2021 2022 2023 2024 2025General FundReserved for:Restricted for tourism -$ -$ -$ -$ -$ 2,385,220$ 6,099,958$ -$ -$ -$ Restricted for other - - - - - - - 3,238,248 920,680 552,240 Restricted for capital projects 367,397 367,397 - - - - - - - - Nonspendable 284,122 313,070 110,389 295,737 527,373 705,043 184,128 184,129 338,248 240,749 Unassigned 13,275,540 13,503,540 14,396,285 15,213,908 18,686,206 19,835,324 23,834,380 37,893,987 35,930,912 26,273,052 Total general fund13,927,059$ 14,184,007$ 14,506,674$ 15,509,645$ 19,213,579$ 22,925,587$ 30,118,466$ 41,316,364$ 37,189,840$ 27,066,041$ All Other Governmental FundsRestricted for:Capital Projects 790,306$ 1,729,804$ 20,717,454$ 18,082,244$ 19,229,949$ 20,344,096$ 23,279,419$ 20,237,886$ 809,584$ 51,792,834$ Debt Service 1,922,262 1,133,536 1,159,562 1,183,290 2,159,398 3,442,104 5,416,036 5,593,826 7,124,759 5,544,847 Other 1,261,149 1,681,336 2,313,497 3,694,856 3,659,079 3,019,789 3,202,687 5,858,654 9,086,162 7,480,015 Committed10,688,119 11,099,306 1,386,721 963,305 1,051,469 1,277,449 1,658,047 2,152,265 2,873,657 3,050,108 Nonspendable5,565 5,294 931 13,532 1,032 1,032 816 816 816 188,371 Unassigned- - - (20,716) - - (22,402) - - - Total all other governmental funds14,667,401$ 15,649,276$ 25,578,165$ 23,916,511$ 26,100,927$ 28,084,470$ 33,534,603$ 33,843,447$ 19,894,978$ 68,056,175$ Source: Annual Comprehensive Financial Report -Exhibit A-3CITY OF THE COLONY, TEXASFUND BALANCES, GOVERNMENTAL FUNDS(MODIFIED ACCRUAL BASIS OF ACCOUNTING)LAST TEN FISCAL YEARS (UNAUDITED)Fiscal Year 152
90 City of The Colony, Texas Changes in Fund Balances, Governmental Funds (Modified Accrual Basis of Accounting) Last Ten Fiscal Years (Unaudited) TABLE 42016 2017 2018 2019 2020 2021 2022 2023 2024 2025REVENUESAd valorem taxes, penalties and interest 21,257,383$ 24,665,737$ 28,073,387$ 31,208,682$ 34,517,810$ 36,550,929$ 38,792,035$ 43,999,806$ 34,578,872$ 45,440,790$ Municipal sales tax 5,736,997 6,357,581 7,100,104 8,090,511 7,442,947 9,721,676 11,426,569 11,812,142 10,916,476 21,172,289 Hotel / motel taxes 668,011 1,275,280 1,525,722 1,532,041 849,664 1,044,987 1,937,274 2,356,975 2,538,159 2,332,854 Franchise taxes 2,527,792 2,609,706 2,705,950 2,737,190 2,765,433 2,517,283 2,873,419 2,911,718 5,159,631 2,987,086 Licenses and permits 3,113,013 3,150,756 3,183,516 3,328,364 3,203,525 3,259,282 4,515,248 3,721,083 3,731,469 2,863,635 Charges for services 4,150,248 2,672,368 3,245,584 3,267,327 2,478,974 3,687,233 2,900,182 3,445,900 3,500,275 7,607,599 Fines and forfeitures 870,181 854,047 984,744 891,132 704,360 836,303 1,164,987 994,113 908,651 1,289,271 Grants 316,672 412,631 102,554 339,562 2,779,166 352,504 458,246 894,159 2,042,307 1,984,255 Gifts and contributions 3,252,323 2,445,113 4,712,701 3,686,808 3,889,559 1,242,904 1,618,088 702,620 58,260 18,874 Intergovernmental2,518,123 1,495,213 905,300 856,880 - - 5,906 12,616,477 5,256,187 8,809,476 Interest earned102,126 256,672 729,690 1,075,171 429,498 26,889 456,215 4,202,359 4,504,997 4,010,660 Miscellaneous792,311 838,429 1,521,033 2,982,496 1,236,607 1,715,059 5,196,325 5,666,513 3,356,911 3,925,239 Total revenues45,305,180 47,033,533 54,790,285 59,996,164 60,297,543 60,955,049 71,344,494 93,323,865 76,552,195 102,442,028 EXPENDITURESCurrent General government7,739,892 9,005,102 12,787,913 12,251,044 10,433,755 11,611,036 11,204,338 13,568,601 12,188,829 24,958,515 Economic development- - - - - - - - - 23,534,525 Public safety15,162,864 16,904,990 18,538,271 22,225,377 22,666,732 24,497,318 26,857,472 29,700,280 31,838,006 34,264,943 Public works3,480,223 4,119,371 3,955,801 5,312,936 4,599,940 6,243,114 7,408,957 8,111,867 12,524,746 9,111,936 Cultural and recreation4,473,519 4,803,444 5,370,608 5,621,488 5,105,872 7,035,533 6,763,364 6,839,325 7,463,111 7,680,405 Capital Outlay9,801,947 12,722,830 8,985,109 19,677,151 7,750,112 6,059,106 12,467,022 15,849,955 18,064,954 31,892,427 Debt Service: Principal retirement3,985,693 3,945,295 4,485,630 6,785,263 5,675,101 5,377,101 5,622,134 5,304,137 5,944,935 9,159,802 Interest and fiscal charges1,485,036 1,885,328 2,044,983 2,355,272 1,993,814 2,259,386 2,244,482 2,703,877 2,461,145 3,749,669 Other debt service costs272,250 269,732 194,643 148,434 186,184 147,333 246,198 - - - Total expenditures46,401,424 53,656,092 56,362,958 74,376,965 58,411,510 63,229,927 72,813,967 82,078,042 90,485,726 144,352,222 Excess (deficiency) of revenues over (under) expenditures(1,096,244) (6,622,559) (1,572,673) (14,380,801) 1,886,033 (2,274,878) (1,469,473) 11,245,823 (13,933,531) (41,910,194) CITY OF THE COLONY, TEXASCHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS(MODIFIED ACCRUAL BASIS OF ACCOUNTING)LAST TEN FISCAL YEARS (UNAUDITED)Fiscal Year153
91 City of The Colony, Texas Changes in Fund Balances, Governmental Funds (Modified Accrual Basis of Accounting) - continued Last Ten Fiscal Years (Unaudited) TABLE 42016201720182019202020212022202320242025OTHER FINANCING SOURCES (USES) Issuance of debt- 9,204,000 12,726,000 13,242,170 - 7,587,000 13,394,495 - - 72,802,532 Issuance of refunding debt9,023,150 - - - 9,652,460 - - - - - Payment of escrow for refunding debt(9,623,402) - - - 1,708,838 - - - - - Premium on issuance of debt637,273- 533,188 954,434 (7,362,614) 783,429 817,990- - 5,260,927 Proceeds from sale of capital assets- 731,402 - - - - - 360,919 - - Transfers from other funds14,488,155 3,332,936 13,769,908 890,075 3,172,092 797,271 832,584 2,511,617 1,454,000 6,559,131 Lease Proceeds- - - - - - - - 205,487.00 41,742.00 Subscription IT proceeds- - - - - - - - 53,051 1,942,391 Transfers to other funds(7,745,963) (5,406,936) (15,204,867) (1,364,561) (3,168,459) (1,197,271) (932,584) (2,611,617) (5,854,000) (6,659,131) Total other financing sources (uses)6,779,213 7,861,402 11,824,229 13,722,118 4,002,317 7,970,429 14,112,485 260,919 (4,141,462) 79,947,592 NET CHANGE IN FUND BALANCES5,682,969$ 1,238,843$ 10,251,556$ (658,683)$ 5,888,350$ 5,695,551$ 12,643,012$ 11,506,742$ (18,074,993)$ 38,037,398$ Debt service as a percentage of noncapital expenditures14.9%14.2%13.8%16.7%15.1%13.4%13.0%12.1%11.6%11.6%Source: Annual Comprehensive Financial Report - Exhibit A-5CITY OF THE COLONY, TEXASCHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS(MODIFIED ACCRUAL BASIS OF ACCOUNTING)LAST TEN FISCAL YEARS (UNAUDITED)Fiscal Year154
92 City of The Colony, Texas Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years (Unaudited) TABLE 5AssessedTotal FairValue as aFiscal ResidentialCommercial Vacant and Farm Plus:AssessedDirect TaxMarketPercentage ofYearPropertyPropertyPropertyExemptionsValue aRateValueMarket Value20162,049,580,033$ 979,961,737$ 80,496,674$ 286,077,430$ 3,396,115,874$ 0.67000$ 3,396,115,874$ 100.00%20172,724,768,066 806,868,129 96,589,219 362,259,593 3,990,485,007 0.66750 4,115,540,606 96.96%20183,158,235,721 886,382,097 113,617,595 350,939,833 4,509,175,246 0.66500 4,680,108,750 96.35%20193,163,815,052 914,419,774 67,568,663 369,920,657 4,515,724,146 0.66250 4,666,740,068 96.76%20203,909,576,822 1,074,589,635 82,872,653 414,638,193 5,481,677,303 0.66000 5,617,282,419 97.59%20214,347,039,415 1,202,333,938 66,830,583 447,049,065 6,063,253,001 0.65000 6,145,537,206 98.66%20224,757,328,003 1,142,225,692 67,659,519 520,966,975 6,488,180,189 0.65000 6,592,062,088 98.42%20235,397,012,465 1,339,605,818 77,988,887 597,050,580 7,411,657,750 0.64500 7,879,743,298 94.06%20246,243,287,578 1,440,699,074 113,418,397 654,821,099 8,452,226,148 0.64000 9,229,636,660 91.58%20256,720,077,890 1,475,405,463 106,083,549 816,488,281 9,118,055,183 0.63500 9,502,923,664 95.95%Source: Denton Central Appraisal District (DCAD)Note: TProperty is assessed on the basis of 100 percent of its appraised value. Tax rates are per $100 of taxable value.Values are as of certification and exclude values under review by the Appraisal Review Board (ARB). a Includes adjustments to certified rolls.CITY OF THE COLONY, TEXASASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTYLAST TEN FISCAL YEARS (UNAUDITED)Taxable Value 155
93
City of The Colony, Texas
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years (Unaudited)
TABLE 6
Operating/ Obligation Lewisville
Fiscal General Debt Total Independent Denton
Year Rate Service Direct School District County
2016 0.510360$ 0.159600$ 0.670000$ 1.477000$ 0.262000$
2017 0.564200 0.103300 0.667500 1.420000 0.248410
2018 0.515000 0.150000 0.665000 1.408000 0.237810
2019 0.502500 0.160000 0.662500 1.338000 0.225570
2020 0.495500 0.164500 0.660000 1.347000 0.225280
2021 0.495000 0.160000 0.655000 1.308500 0.224990
2022 0.490000 0.160000 0.650000 1.236800 0.233086
2023 0.540000 0.105000 0.645000 1.130100 0.217453
2024 0.534000 0.106000 0.640000 1.117800 0.189485
2025 0.481191 0.153809 0.635000 1.117800 0.187869
Source: Denton County Tax Office
General
CITY OF THE COLONY, TEXAS
DIRECT AND OVERLAPPING PROPERTY TAX RATES
(PER $100 OF ASSESSED VALUE)
LAST TEN FISCAL YEARS (UNAUDITED)
City Direct Rates Overlapping Rates
156
94 City of The Colony, Texas Principal Tax Payers Current Year and Nine Years Ago (Unaudited) TABLE 7Taxable Percentage of Total Taxable Percentage of TotalAssessed Taxable Assessed Assessed Taxable AssessedTaxpayer Value RankValue aValueRankValue aLMG Ventures LLC125,170,957$ 11.51%TXFM Inc121,275,000 21.46%Austin Ranch Phase VI Investors LLC98,000,000 31.18%Icon The Colony Land Owner Pool 2 LLC96,931,330 41.17%Hudson MF LLC94,900,000 51.14%LMG Ventures LLC93,381,012 61.12%The Residences of Lake District No 1 LTD91,185,043 71.10%AR Phase 1 LLC85,000,000 81.02%AR NO.5 LLC81,847,893 90.99%AR Phase 2 LLC77,000,000 100.93%TXFM Inc- - 121,602,740$ 13.91%Nebraska Furniture Mart- - 60,136,419 21.93%Austin Ranch Phase VI Investors LLC- - 57,000,000 31.83%AR NO.5 LLC- - 54,994,587 41.77%The Residences of Austin Ranch #4 M LLC- - 48,000,000 51.54%AR Phase 1 LLC- - 47,000,000 61.51%The Residences of Austin Ranch #3 M LLC- - 41,500,000 71.33%AR Phase 2 LLC- - 41,500,000 81.33%Somerset Land LTD- - 30,164,664 90.97%GS Sonoma Grand LP- - 27,503,843 100.88%964,691,235$ 11.62%529,402,253$ 17.00%Source: Denton Central Appraisal DistrictNote: Taxpayers are assessed on January 1, 2024 and billed on October 1, 2024 for the 2024 tax year, resulting in revenue to the City in fiscal year 2025.CITY OF THE COLONY, TEXASPRINCIPAL TAX PAYERSCURRENT YEAR AND NINE YEARS AGO (UNAUDITED)Fiscal Year 2025Fiscal Year 2016 157
95 City of The Colony, Texas Ad Valorem Tax Levies and Collections Last Ten Fiscal Years (Unaudited) TABLE 8Taxes LeviedPercentageFiscal for the FiscalAmountof LevyYear Year Adjustments Collections Adjustments Collections Uncollected Collected2016 20,773,340$ 40,758$ 20,697,081$ 117,156$ 219,901$ 14,272$ 99.93%2017 24,150,242 289,670 24,136,260 (180,130) 105,436 18,086 99.93%2018 25,839,753 1,849,061 27,611,357 (6,292) 50,611 20,554 99.92%2019 27,465,954 3,532,519 30,872,909 (16,763) 76,765 32,036 99.88%2020 33,442,459 1,004,802 34,299,463 (33,630) 74,825 39,343 99.88%2021 36,655,750 (78,224) 36,419,012 (20,012) 101,644 36,858 99.90%2022 38,447,183 402,613 38,680,354 42,022 173,896 37,568 99.90%2023 43,197,881 478,563 43,485,132 (300,581) (170,322) 61,053 99.86%2024 49,370,888 (616,721) 48,549,479 (213,346) (92,441) 83,783 99.83%2025 51,298,063 (371,480) 50,692,763 - - 233,820 99.54%Source: Denton County Tax OfficeCITY OF THE COLONY, TEXASAD VALOREM TAX LEVIES AND COLLECTIONSLAST TEN FISCAL YEARS (UNAUDITED)Fiscal Year of LevySubsequent to LevyFiscal Years158
96 City of The Colony, Texas Ratio of Outstanding Debt by Type Last Ten Fiscal Years (Unaudited) TABLE 9Water and PercentageFiscal Obligation Certificates Other Premiums/ Revenue Other Premiums/ Total Primary of Personal PerYear Bonds of ObligationObligations aDiscountsBondsObligations Discounts GovernmentIncome bCapita a2016 19,344,210$ 14,765,000$ 767,611$ 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 6.82%2,635 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 7.40%2,930 2021 16,406,504 47,832,600 698,539 4,917,141 - 67,209,796 4,878,969 141,943,549 7.05%3,189 2022 10,288,768 55,142,250 1,526,949 6,025,409 - 62,133,982 4,895,372 140,012,730 6.18%3,050 20238,349,797 52,291,100 240,193 5,438,485 - 56,399,103 4,360,388 127,079,066 5.55%2,740 20246,564,210 49,392,450 6,612,176 4,434,924 - 50,463,340 3,990,604 121,457,704 5.26%2,596 20255,078,819 116,995,050 6,949,298 9,077,317 - 52,751,131 4,084,887 194,936,502 6.10%4,121 Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. a Other obligations include financed purchases, SBITA liabilities and lease liabilities. b Population and personal income data per Table 14.CITY OF THE COLONY, TEXASRATIO OF OUTSTANDING DEBT BY TYPELAST TEN FISCAL YEARS (UNAUDITED)Governmental Activities Business-Type Activities
159
97 City of The Colony, Texas Ratio of General Bonded Debt Outstanding Last Ten Fiscal Years (Unaudited) TABLE 10PercentageGeneralLess: TaxableFiscal Obligation Certificates of Other Premium/ Debt Value ofPerYear Bonds Obligation Obligations Discount Service TotalProperty aCapita b201619,344,210$ 14,765,000$ -$ 2,106,044$ 1,826,579$ 34,388,675$ 1.11%778 201716,580,250 22,872,150 - 2,592,781 1,027,528 41,017,653 1.13%971 201815,711,300 37,356,650 - 3,260,811 902,127 55,426,634 1.33%1,242 201911,518,300 46,861,850 - 3,808,516 863,999 61,324,667 1.48%1,375 202012,988,300 39,038,100 - 5,449,889 1,802,592 55,673,697 1.10%1,250 202116,406,504 47,832,600 - 4,917,141 3,183,352 65,972,893 1.17%1,482 202210,288,768 55,142,250 - 6,025,409 5,124,388 66,332,039 1.11%1,445 20238,349,797 52,291,100 - 5,438,485 5,296,697 60,782,685 0.89%1,311 20246,564,210 49,392,450 - 4,434,924 6,878,981 53,512,603 0.69%1,144 20255,078,819 116,995,050 - 9,077,318 4,134,305 127,016,882 1.53%2,685 Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. a See Table 5 for property value data. b See Table 14 for population data.CITY OF THE COLONY, TEXASRATIO OF GENERAL BONDED DEBT OUTSTANDINGLAST TEN FISCAL YEARS (UNAUDITED)Governmental Activities 160
98 City of The Colony, Texas Legal Debt Margin Information Last Ten Fiscal Years (Unaudited) TABLE 112016 2017 2018 2019 2020 2021 2022 2023 2024 2025Tax Rate Limit 2.5000$ 2.5000$ 2.5000$ 2.5000$ 2.5000$ 2.5000$ 2.5000$ 2.5000$ 2.5000$ 2.5000$ Current Tax Rate0.6700 0.6675 0.6650 0.6625 0.6600 0.6550 0.6500 0.6450 0.6400 0.6350 Available Tax Rate1.8300$ 1.8300$ 1.8400$ 1.8400$ 1.8400$ 1.8400$ 1.8500$ 1.8550$ 1.8650$ 1.8650$ 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 $100 assessed valuation. No direct bond debt limitation is imposed on the City under current state law or the City's Charter.CITY OF THE COLONY, TEXASLEGAL DEBT MARGIN INFORMATIONLAST TEN FISCAL YEARS (UNAUDITED)Fiscal Year161
99
City of The Colony, Texas
Direct and Overlapping Governmental Activities Debt
September 30, 2025 (Unaudited)
TABLE 12
The Colony
Estimated Share of
Gross Bonded Percentage Overlapping
Governmental Unit Debt Applicable a Debt
Lewisville I.S.D. 1,542,880,000$ 8.09% 124,814,662$
Little Elm I.S.D. 583,787,736 19.25% 112,351,186
Denton County 688,505,000 3.44% 23,699,818
2,815,172,736 260,865,666
City of The Colony (direct debt)194,936,502 100.00% 194,936,502
Total direct and overlapping debt 3,010,109,238$ 455,802,168$
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.
CITY OF THE COLONY, TEXAS
DIRECT AND OVERLAPPING GOVERNMENTAL
ACTIVITIES DEBT
SEPTEMBER 30, 2025 (UNAUDITED)
162
100
City of The Colony, Texas
Pledged Revenue Coverage
Last Ten Fiscal Years (Unaudited)
TABLE 13
Less:
Fiscal Total Operating Net Available Annual Times
Year Revenuesa Expensesb Revenue Requirementc Coverage
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
2023 28,609,638 19,197,584 9,412,054 4,751,681 1.98
2024 31,140,012 20,901,248 10,238,764 4,730,053 2.16
2025 32,303,389 21,498,971 10,804,418 4,890,332 2.21
Note: a Includes operating and non-operating revenues per the Statement of Revenues, Expenses and Changes in
Fund Net Position - Proprietary Funds.
b Includes operating expenses minus depreciation per the Statement of Revenues, Expenses and Changes in
Fund Net Position - Proprietary Funds.
c Principal and interest payments on non-general obligation debt secured by a pledge of utility revenue.
CITY OF THE COLONY, TEXAS
PLEDGED-REVENUE COVERAGE
LAST TEN FISCAL YEARS (UNAUDITED)
Water and Sewer System Revenue Bonds
163
101
City of The Colony, Texas
Demographic and Economic Statistics
Last Ten Calendar Years (Unaudited)
TABLE 14
Per Capita Median
Estimated Personal Personal Median Household School Unemployment
Year Populationa Income Incomeb Ageb Incomeb Enrollmentc Rate d
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 44,610 1,722,659,760 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 44,534 1,763,056,526 39,589 35.5 107,620 6,031 3.3%
2021 44,514 2,014,570,098 45,257 35.7 87,748 5,712 3.9%
2022 45,901 2,266,453,677 49,377 34.9 110,760 6,755 3.4%
2023 46,380 2,290,105,260 49,377 36 118,686 6,310 3.9%
2024 46,787 2,310,201,699 49,377 37.2 134,764 6,058 4.1%
2025 47,308 3,195,087,704 67,538 37.4 117,174 5,998 3.7%
Sources: Estimated population from North Central Texas Council of Governments (NCTCOG)
Per capita income and median household income from HomeTownLocator - https://texas.hometownlocator.com/
Median age and unemployment rate from Data Commons - https://datacommons.org/
School enrollment - Texas Education Agency - https://rptsvr1.tea.texas.gov/adhocrpt/adste.html
Note: School enrollment excludes values masked by TEA in order to comply with the Family Educational Rights and Privacy Act (FERPA).
Personal income is calculated by multiplying estimated population by per capita personal income.
CITY OF THE COLONY, TEXAS
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN CALENDAR YEARS (UNAUDITED)
164
102
City of The Colony, Texas
Principal Employers
Current Year and Nine Years Ago(Unaudited)
TABLE 15
Percentage of Percentage of
Total City Total City
Employer Employees Rank Employment Employees Rank Employment
Nebraska Furniture Mart 1,500 1 6.42%2,200 1 4.60%
Lewisville ISD 558 2 2.39%690 2 3.17%
Scheels 510 3 2.18%
City of The Colony 474 4 2.03%328 4 1.78%
Wal-Mart 307 5 1.31%353 5 1.62%
Top Golf 279 6 1.19%450 3 2.07%
Home Depot 231 7 0.99%112 9 0.51%
Hawaiian Falls 221 8 0.95%230 6 0.92%
Quest Resource Mgmt 197 9 0.84%120 8 0.51%
Andretti's 133 10 0.57%
Williams Sonoma 170 7 0.78%
Edward Don 100 10 0.48%
4,410 18.87%4,753 16.44%
Source: Finance Direct Calls to Employers
2025 2016
CITY OF THE COLONY, TEXAS
PRINCIPAL EMPLOYERS
CURRENT AND NINE YEARS AGO (UNAUDITED)
165
103 City of The Colony, Texas Full-Time Equivalent City Government Employees by Function/Program Last Ten Fiscal Years (Unaudited) TABLE 16Function/Program 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025General government 31 34 34 38 32 34 34 35 37 55Public safety 151 165 174 187 198 204 219 215 216 229Public works 45474959525360616255Culture and recreation 38353537414142596153Water/wastewater/ Utilities 37 40 40 38 47 49 51 52 56 56Total 302 321 332 359 370 381 406 422 432 448Sources: City of The Colony Budget Document- Authorized Funded PositionsCITY OF THE COLONY, TEXASFULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAMLAST TEN FISCAL YEARS (UNAUDITED) 166
104 City of The Colony, Texas Operating Indicators by Function/Program Last Ten Fiscal Years (Unaudited) TABLE 17Function/Program 2016 201720182019 2020 2021 2022 2023 2024 2025Police Number of police officers 6060 672747979868686 Number of violations (citations) 13,935 13,986 15,232 11,718 5,742 5,080 14,105 5,555 4,713 6,579 Municipal Court Number of traffic cases 5,298 9,480 11,264 11,264 2,888 4,519 5,174 4,082 4,325 6,976 Number of city ordinance cases 226 805 860 860 132 141 272 266 181 161 Fire Number of fire fighters 58 64 78 66 64 71 72 77 79 79 Number of paramedics - - - 16 18 14 18 18 18 18 Number of emergency fire responses 864 860 909 894 867 1,358 1,588 1,306 1,558 1,260 Number of medical emergencies 2,127 2,365 2,370 2,425 2,443 2,773 3,102 3,214 3,114 3,268 Development Services Total number of building permitsa277 2,556 4,127 4,216 2,394 3,219 3,219 2,058 2,107 1,770 Estimated valuationa127,234,464$ 213,756,755$ 271,621,030$ 394,232,000$ 47,041,844$ 68,718,187$ 68,718,187$ 108,669,341$ 109,563,107$ 144,391,788$ Parks and Recreation Number of acres $983 $983 $983 $983 $983 $984 $984 1,004 1,020 1,020 Number of recreation center participants 52,424 41,595 44,789 44,789 26,843 43,350 42,850 31,771 50,965 49,593 Library Volumes in collectionb117,538 111,150 121,926 93,919 97,716 92,918 115,560 104,839 94,202 128,444 Number of library cardholders 18,042 17,291 16,725 19,101 20,534 21,770 23,127 25,742 26,716 28,425 Water and wastewater Number of water accounts 12,893 13,285 13,626 13,864 14,161 14,335 14,660 14,716 15,045 15,104 Average daily water consumption (millions of gallons) 5 5 5 5 5 5 8 6 7 6 Average daily effluent (millions of gallons) 3 1,070 1 1 1 1 3 3 4 4 Sources: City DepartmentsNotes: a Includes residential and commercial permits b Includes physical and digital books and media.CITY OF THE COLONY, TEXASOPERATING INDICATORS BY FUNCTION/PROGRAMLAST TEN FISCAL YEARS (UNAUDITED)Fiscal Year167
105 City of The Colony, Texas Capital Asset Statistics by Function/Program Last Ten Fiscal Years (Unaudited) TABLE 18Function/Program 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025Public Safety Fire Stations 3 3 3 4 4 4 4 5 5 5 Police Stations1 1 1 1 1 1 1 1 1 1 Culture and Recreation Parks and Recreation Number of parks27 27 27 27 27 27 27 27 27 27 Number of baseball diamonds11 11 11 11 15 15 15 15 15 15 Number of soccer/football fields16 16 16 16 15 15 15 15 15 15 Public swimming pools2 2 2 2 2 2 2 3 3 3 Community centers1 1 1 1 1 1 1 2 2 2 Library1 1 1 1 1 1 1 1 1 1 Water and wastewater Water mains (miles)216 194 195 199 201 203 203 196 203 204 Sanitary sewer mains (miles)213 206 207 210 212 214 214 151 155 156 Fire hydrants1,680 1,795 1,824 1,850 1,925 1,955 1,955 1,934 2,044 2,071 Sources: City DepartmentsCITY OF THE COLONY, TEXASCAPITAL ASSET STATISTICS BY FUNCTION/PROGRAMLAST TEN FISCAL YEARS (UNAUDITED)Fiscal Year 168
eidebailly.com
Federal Awards Reports in Accordance with
the Uniform Guidance
September 30, 2025
City of The Colony, Texas
169
City of The Colony, Texas
Table of Contents
September 30, 2025
Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other
Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing
Standards ................................................................................................................................................................... 1
Independent Auditor’s Report on Compliance for the Major Federal Program; Report on Internal Control Over
Compliance Required by the Uniform Guidance ....................................................................................................... 3
Schedule of Expenditures of Federal Awards ............................................................................................................ 6
Notes to the Schedule of Expenditures of Federal Awards ....................................................................................... 7
Schedule of Findings and Questioned Costs .............................................................................................................. 8
170
eidebailly.com
400 Pine St., Ste. 600 • Abilene, TX 79601-5190 • T 325.672.4000 • TF 800.588.2525 • F 325.672.7049 • EOE
1
Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other
Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing
Standards
To the Mayor and
Members of the City Council
City of The Colony, Texas
We have audited, in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States (Government Auditing Standards), the financial statements of the
governmental activities, the business-type activities, the aggregated 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, 2025, and the related notes to the financial statements, which collectively
comprise the City’s basic financial statements and have issued our report thereon dated March 9, 2026.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over
financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the
circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of
expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an
opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in
internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial
statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a
deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet
important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section
and was not designed to identify all deficiencies in internal control that might be material weaknesses or
significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that have not
been identified. We identified a deficiency in internal control, described in the accompanying schedule of
findings and questioned costs as item 2025-001 that we consider to be a material weakness.
171
2
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material
misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and
grant agreements, noncompliance with which could have a direct and material effect on the financial
statements. However, providing an opinion on compliance with those provisions was not an objective of our
audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of
noncompliance or other matters that are required to be reported under Government Auditing Standards.
City’s Response to Finding
Government Auditing Standards requires the auditor to perform limited procedures on the City’s response to
the finding identified in our audit and described in the accompanying Schedule of Findings and Questioned
Costs. The City’s response was not subjected to the other auditing procedures applied in the audit of the
financial statements and, accordingly, we express no opinion on the response.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and
the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on
compliance. This report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the City’s internal control and compliance. Accordingly, this communication is not
suitable for any other purpose.
Abilene, Texas
March 9, 2026
172
eidebailly.com
400 Pine St., Ste. 600 • Abilene, TX 79601-5190 • T 325.672.4000 • TF 800.588.2525 • F 325.672.7049 • EOE
3
Independent Auditor’s Report on Compliance for the Major Federal Program; Report on Internal Control Over
Compliance; and Report on the Schedule of Expenditures of Federal Awards Required by the Uniform
Guidance
To the Mayor and
Members of the City Council
City of The Colony, Texas
Report on Compliance for the Major Federal Program
Opinion on the Major Federal Program
We have audited City of The Colony, Texas’s (the City) compliance with the types of compliance requirements
identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on
the City’s major federal program for the year ended September 30, 2025. The City’s major federal program is
identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned
costs.
In our opinion, the City complied, in all material respects, with the compliance requirements referred to above
that could have a direct and material effect on the major federal program for the year ended September 30,
2025.
Basis for Opinion on the Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United
States of America (GAAS); the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States (Government Auditing Standards); and the
audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements,
Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those
standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of
Compliance section of our report.
We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with
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 opinion on compliance for the major federal program. Our
audit does not provide a legal determination of the City’s compliance with the compliance requirements
referred to above.
173
4
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design,
implementation, and maintenance of effective internal control over compliance with the requirements of laws,
statutes, regulations, rules and provisions of contracts or grant agreements applicable to the City‘s federal
program.
Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance
requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s
compliance based on our audit. 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, Government Auditing
Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not
detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Noncompliance with the compliance requirements referred to above is considered material, if there is a
substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a
reasonable user of the report on compliance about the City’s compliance with the requirements of the major
federal program as a whole.
In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance,
we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material noncompliance, 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 City’s compliance with the compliance requirements referred to above and
performing such other procedures as we considered necessary in the circumstances.
Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to
design audit procedures that are appropriate in the circumstances and to test and report on internal
control over compliance in accordance with the Uniform Guidance, but not for the purpose of
expressing an opinion on the effectiveness of the City’s internal control over compliance. Accordingly,
no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal
control over compliance that we identified during the audit.
Report on Internal Control over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance
does not allow management or employees, in the normal course of performing their assigned functions, to
prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a
timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of
deficiencies, in internal control over compliance, such that there is a reasonable possibility that material
noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected
and corrected, on a timely basis.
174
5
A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in
internal control over compliance with a type of compliance requirement of a federal program that is less severe
than a material weakness in internal control over compliance, yet important enough to merit attention by those
charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s
Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in
internal control over compliance that might be material weaknesses or significant deficiencies in internal control
over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control
over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses
or significant deficiencies in internal control over compliance may exist that were not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control
over compliance. Accordingly, no such opinion is expressed.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of
internal control over compliance and the results of that testing based on the requirements of the Uniform
Guidance. Accordingly, this report is not suitable for any other purpose.
Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance
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 as of and for the year ended September 30, 2025, and the related notes to the financial
statements, which collectively comprise the City’s basic financial statements. We issued our report thereon
dated March 9, 2026, which contained unmodified opinions on those financial statements. Our audit was
conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic
financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of
additional analysis as required by the Uniform Guidance and is not a required part of the basic financial
statements. Such 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. The 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 schedule of expenditures of federal awards is fairly stated in all
material respects in relation to the basic financial statements as a whole.
Abilene, Texas
March 9, 2026
175
See Notes to Schedule of Expenditures of Federal Awards 6
City of The Colony, Texas
Schedule of Expenditures of Federal Awards
Year Ended September 30, 2025
Federal Financial Pass-Through
Assistance Entity Identifying
Listing Number Expenditures
Department of Justice
Direct Program
Bulletproof Vests Partnership Program 16.607 N/A 8,291$
Passed through the City of Denton
Edward Byrne Memorial Justice Assistance Grant 16.738 O-BJA-2023-171790 5,849
Total Department of Justice 14,140
Department of Treasury
Direct Program
COVID-19 Coronavirus State and Local Fiscal
Recovery Funds Program 21.027 N/A 1,838,954
Total Department of Treasury 1,838,954
Department of Homeland Security
Passed through Office of Governor - Public Safety Office
State and Local Cybersecurity Grant Program 97.137 N/A 18,730
Total Department of Homeland Security 18,730
Department of Transportation
Passed through Texas Department of Transportation
State and Community Highway Safety 20.600 300004020TX0 10,181
Total Department of Transportation 10,181
Total Federal Financial Assistance 1,882,005$
Federal Grantor/Pass-Through Grantor/
Program or Cluster Title
176
7
City of The Colony, Texas
Notes to the Schedule of Expenditures of Federal Awards
Year Ended September 30, 2025
Note A - Basis of Presentation
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity
of the City of The Colony, Texas, under programs of the federal government for the year ended September 30,
2025. The information is presented in accordance with the requirements of Title 2 U.S. Code of Federal
Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the
City, it is not intended to and does not present the financial position, changes in net position or fund balance, or
cash flows of the City.
Note B – Summary of Significant Accounting Principles
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. The
Governmental Fund types are accounted for using a current financial resources measurement focus. All federal
expenditures were accounted for in the General Fund and Special Revenue Funds, components of the
Governmental Fund type, using the modified accrual basis of accounting. Such expenditures are recognized
following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not
allowed or are limited as to reimbursement.
Federal grants are considered to be earned to the extent of expenditures made under the provisions of the
grant. No federal awards have been provided to a subrecipient.
Note C – Indirect Cost Rate
The City is not eligible to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance
because the City has previously received a negotiated indirect cost rate for its federal awards.
177
8
City of The Colony, Texas
Schedule of Findings and Questioned Costs
Year Ended September 30, 2025
Section I – Summary of Auditor’s Results
FINANCIAL STATEMENTS
Type of auditor's report issued Unmodified
Internal control over financial reporting:
Material weaknesses identified Yes
Significant deficiencies identified not
considered to be material weaknesses None Reported
Noncompliance material to financial statements noted?No
FEDERAL AWARDS
Internal control over major programs:
Material weaknesses identified No
Significant deficiencies identified not
considered to be material weaknesses None Reported
Type of auditor's report issued on compliance for major programs: Unmodified
Any audit findings disclosed that are required to be reported in
accordance with Uniform Guidance 2 CFR 200.516 (a): No
Identification of major programs:
Federal Financial
Assistance Listing
COVID-19 Coronavirus State and Local Fiscal Recovery Funds
Program 21.027
Dollar threshold used to distinguish between type A
and type B programs for federal awards: $1,000,000
Auditee qualified as low-risk auditee? No
Name of Federal Program
178
9
City of The Colony, Texas
Schedule of Findings and Questioned Costs
Year Ended September 30, 2025
Section II – Financial Statement Findings
Finding 2025-001 Preparation of Financial Statements and Material Audit Adjustments
Type of Finding: Material Weakness
Criteria: Management of the City is responsible for the preparation and fair presentation of
the financial statements in accordance with generally accepted accounting
principles (GAAP). This includes the design, implementation, and maintenance of
internal controls relevant to the fair presentation of the financial statements that
are free from material misstatement in a timely manner.
Condition: The internal control structure of the City has focused primarily on the objective of
effectiveness and efficiency of operations (i.e., performance and safeguarding of
resources). However, the system of internal control over the objectives of reliability
of financial reporting contains deficiencies which resulted in certain material entries
recorded to receivables, payables, and deferred inflows of resources that were
detected as a result of audit procedures.
Cause: The City does not prepare and has not developed an internal control system to
provide for the timely preparation of the financial statements and related
disclosures in a timely manner.
Effect: The preparation of financial statements may result in financial statements and
related information included in financial statement disclosures not being available
or accurate for management purposes as timely and accurate as it would be if the
financial statements were prepared by the City.
Recommendation: Auditing standards require that auditors communicate this deficiency; however, the
City prepares budgetary and other financial reports for Board review on a routine
basis, similar to many smaller governmental entities. It is the responsibility of
management and those charged with governance to determine whether to accept
the risk associated with this condition because of cost or other considerations.
View of Responsible
Officials: Refer to the Corrective Action Plan
Section III – Federal Award Findings and Questioned Costs
The audit disclosed no findings or questioned costs required to be reported.
179
Management’s Response to Auditor’s Findings:
Summary Schedule of Prior Audit Findings and Corrective
Action Plan
September 30, 2025
Prepared by Management of
City of the Colony, Texas
180
City of The Colony, Texas - Summary Schedule of Prior Audit Findings
Financial Statement Findings
Finding 2024-001
Initial Fiscal Year
Finding Occurred: 2024
Finding Summary: The internal control structure of the City failed to identify certain material entries
related to capital assets, receivables, unearned revenue, payables, revenue and prepaid
assets that were detected as a result of audit procedures during the current fiscal year.
Additionally, the City recorded adjustments to restate beginning fund balance and net
position, which if not recorded, would have resulted in a misstatement of the City’s
financial statements.
Status: Ongoing. See finding 2025-001.
Finding 2024-002
Initial Fiscal Year
Finding Occurred: 2024
Finding Summary: The internal control structure of the City did not include procedures to prepare monthly
reconciliations for all accounts on a timely basis as part of its monthly close process.
Status: This recommendation has been implemented.
181
City of The Colony, Texas – Corrective Action Plan
Financial Statement Findings
Finding 2025-001
Finding Summary: The internal control structure of the City failed to identify certain material entries
related receivables, payables, and deferred inflows that were detected as a result of
audit procedures during the current fiscal year.
Corrective Action
Plan: To prevent future oversights and misstatements, the City will perform the following:
Invest in an additional module within their existing ERP system that provides
functionality for tracking and reporting receivables
Provide training to staff on revenue and expenditure recognition principles
Create and implement additional review and reconciliation procedures
Responsible
Individual: Ryan Bredehoeft, Finance Director
Anticipated
Completion Date: June 2026
182
Agenda Item No: 5.2
CITY COUNCIL Agenda Item Report
Meeting Date: March 17, 2026
Submitted By: Ana Alvarado
Submitting Department: Planning
Item Type: Ordinance
Agenda Section: regular agenda items
Suggested Action:
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-500,
Gateway Standards Waiver Procedures. (Williams)
Background:
Please see the attached staff report for detailed land use and staff recommendations.
Attachments:
SI26-0001 Zoning Text Amendment - Appendix A GWY amendment (Minor Waivers additions) CC.doc
SI26-0001 Text Amendment Appendix A Gateway Standards Waivers Ordinance -.doc
183
1
CITY COUNCIL REPORT
AGENDA DATE: March 17, 2026
DEPARTMENT: Planning and Zoning Department
SUBJECT: SI26-0001 Zoning Text Amendment- Appendix A, Section 10A, Gateway
Overlay District
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-500, Gateway Standards Waiver Procedures
BACKGROUND
In 2023 staff made recommendations for the introduction of “Alternative C ompliance” and
established the breakdown of the existing Gateway Standards Waivers into the “Major” [waiver]
and “Minor” [waiver] categories.
Those amendments provide additional site and building design considerations for areas commonly
challenged by the regulations of Gateway. The intent of Alternative Compliance through Minor
Waivers is flexibility without the loss of the districts high design standards. Further review of
redevelopments within the City revealed an opportunity to address more areas of unique design
considerations in the Gateway Overlay District.
In general, these regulations would apply to any development or tract within the Gateway Overlay
District, but the most significant impact is likely those areas within the City that are “infill,” have
been impacted by roadway widening, or are encumbered by utilities or natural features. The
proposed text strengthens the Gateway Overlay District by aligning form, function and flexibility,
ensuring that regulatory standards remain both effective and adaptable as development patterns
evolve
PROPOSED AMENDMENTS:
[…]
Proposed text
o “The required 10-foot wide perimeter landscape buffer between adjacent
properties may be reduced to five feet when abutting a property of a different
zoning or land use, provided the design of said buffer can accommodate an
increase of buffer materials at a rate 1.5 times the original required or a dense
hedge row designed for maximum opacity and screening no less than six feet in
height.”
Allows reduction of the required 10-foot perimeter landscape buffer to five feet when abutting a
different zoning or land use, provided enhanced buffering is achieved through increased plant
material (1.5× requirement) or a dense hedge row with a minimum height of six feet.
184
2
Rationale:
This proposed amendment introduces design flexibility while maintaining— and in many cases
enhancing— the intended screening and compatibility objectives of the Gateway Overlay District.
Gateway corridors frequently contain irregular lot configurations, constrained frontages, or
redevelopment parcels, where strict adherence to a fixed buffer width can result in inefficient site
layouts or unintended development barriers.
By allowing a reduced buffer width only when increased planting density or superior screen ing
design is provided, the site design shifts emphasis from dimensional compliance to performance-
based outcomes. Dense hedge rows and intensified plant material can achieve equal or greater
visual screening, noise attenuation, and land-use transition than a wider but sparsely planted
buffer.
This approach:
Preserves the visual quality and compatibility between differing land uses
Encourages higher-quality landscape design rather than minimum compliance
Reduces the need for repeated waiver requests
Supports redevelopment and infill without diminishing gateway character
[…]
Proposed text
o Dumpster enclosures may be designed with alternative screening materials
including board on board fencing provided the following requirements are met:
proposed location is greater than 150’ from the primary R.O.W.
Plantings in accordance with 10A-1300(1) are provided.
Proposed enclosure design provides screening to the highest or tallest
point of the dumpster or refuse container.
Rationale:
Development design within Gateway must balance aesthetic expectations with practical site
realities. Traditional masonry enclosures, while durable, can be cost-prohibitive and
architecturally incompatible with certain development types, particularly for smaller commercial
sites or adaptive reuse projects.
Allowing alternative screening materials—subject to clear, objective conditions—ensures that
refuse areas remain visually subordinate and effectively screened, without unnecessarily limiting
design options. Further, this proposed amendment improves administrative clarity, expands
design flexibility, and maintains the high visual standards expected within Gateway.
Proposed text
o Landscaping for monument signs as reflected in Section 10A-700 (c)(10) may be
substituted for any one of the amenity choices reflected in Section 10A-700
Table 2”
185
3
Rationale:
Monument sign landscaping often functions as a highly visible gateway feature, contributing
directly to corridor identity, wayfinding, and aesthetic cohesion. In many cases, the quality and
visibility of monument sign landscaping exceed the functional or visual benefit of other amenity
options, particularly on smaller or constrained sites. Site visits to developments within Gateway
revealed an already inconsistent installation and maintenance of this element. This proposed
amendment provides flexibility without reducing overall site enhancement requirements.
RECOMMENDATION
Staff recommends approval of the proposed amendments.
On February 24, 2026, the Planning and Zoning Commission voted (7-0) to approve the proposed
amendments with the following recommendations:
Board on Board (wood) material is excluded as an alternative screening material
Concrete or masonry siding [material] is permitted
186
1
CITY OF THE COLONY, TEXAS
ORDINANCE NO.
ZONING TEXT AMENDMENT- MINOR
WAIVERS
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF THE
COLONY, TEXAS, AMENDING APPENDIX A, SECTION 10A OF THE
CODE OF ORDINANCES OF THE CITY OF THE COLONY, TEXAS, BY
AMENDING SECTION 10A-500, GATEWAY STANDARDS WAIVER
PROCEDURES PROVIDING A SEVERABILITY CLAUSE; PROVIDING
A SAVINGS CLAUSE; PROVIDING A PENALTY OF A FINE NOT TO
EXCEED TWO THOUSAND DOLLARS ($2,000) FOR EACH AND
EVERY OFFENSE; AND PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, Section 211.006(a) of the Texas Local Government Code requires the City
of The Colony, Texas, to publish notice of a public hearing concerning a zoning amendment
before the 15th day before the date of the public hearing; and
WHEREAS, Appendix A, Section 24-101(d) of the Code of Ordinances of the City of
The Colony, Texas, provides the following “[a] public hearing shall be held by City Council
before adopting any proposed amendment, supplement or change. Notice of such hearing shall
be given per the publication policy of the city, stating the time and place of such hearing, and
shall be published a minimum of 15 days prior to the date of the public hearing;” and
WHEREAS, the Planning and Zoning Commission and the City Council of the City of
The Colony, Texas, in compliance with the laws of the State of Texas, and the Code of
Ordinances of the City of The Colony, Texas, have given the requisite notices by publication and
otherwise, and have held due hearings and afforded a full and fair hearing to all property owners
generally and to all persons interested, and the City Council of the City of The Colony, Texas, is
of the opinion and finds that said changes should be granted, and that the Code of Ordinances
should be amended.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF THE COLONY, TEXAS:
SECTION 1. The findings set forth above are incorporated into the body of this
Ordinance as if fully set forth herein.
SECTION 2. That the Code of Ordinances of the City of The Colony, Texas, is hereby
amended by amending Appendix A, Section 10A of the Code of Ordinances of the City of The
Colony, Texas, by amending Section 10A-500, Gateway Standards Waiver Procedures which
shall read as follows:
187
2
o “The required 10-foot wide perimeter landscape buffer between adjacent
properties may be reduced to five feet when abutting a property of a different
zoning or land use, provided the design of said buffer can accommodate an
increase of buffer materials at a rate 1.5 times the original required or a dense
hedge row designed for maximum opacity and screening no less than six feet in
height.
o Dumpster enclosures may be designed with alternative screening materials
including board on board fencing provided the following requirements are met:
proposed location is greater than 150’ from the primary R.O.W.
Plantings in accordance with 10A-1300(1) are provided.
Proposed enclosure design provides screening to the highest or tallest
point of the dumpster or refuse container.
o Landscaping for monument signs as reflected in Section 10A-700 (c)(10) may
be substituted for any one of the amenity choices reflected in Section 10A -700
Table 2”
SECTION 3. If any section, article paragraph, sentence, clause, phrase or word in this
Ordinance, or application thereto any persons or circumstances is held invalid or unconstitutional
by a Court of competent jurisdiction, such holding shall not affect the validity of the remaining
portions of this Ordinance; and the City Council hereby declares it would have passed such
remaining portions of this Ordinance despite such invalidity, which remaining portions shall
remain in full force and effect.
SECTION 4. That all provisions of the Ordinances of the City of The Colony, Texas, in
conflict with the provisions of this Ordinance be, and the same are hereby amended, repealed,
and all other provisions of the Ordinances of the City not in conflict with the provisions of this
Ordinance shall remain in full force and effect.
SECTION 5. Any person, firm, or corporation violating any of the provisions of this
Ordinance shall be deemed guilty of a misdemeanor and, upon conviction in the municipal court
of the City of The Colony, Texas, shall be punished by a fine not to exceed the sum of Two
Thousand Dollars ($2,000.00) for each offense. Every day a violation occurs shall constitute a
separate offense.
SECTION 6. This Ordinance shall become effective from and after its date of passage in
accordance with law.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF THE
COLONY, TEXAS, THIS 17th DAY OF MARCH, 2026.
188
3
Richard Boyer, Mayor
ATTEST:
Tina Stewart, City Secretary
APPROVED AS TO FORM:
Jeff Moore, City Attorney
189
Agenda Item No: 6.1
CITY COUNCIL Agenda Item Report
Meeting Date: March 17, 2026
Submitted By: Ana Alvarado
Submitting Department: City Secretary
Item Type: Discussion
Agenda Section: executive session
Suggested Action:
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).
Background:
190
Agenda Item No: 7.1
CITY COUNCIL Agenda Item Report
Meeting Date: March 17, 2026
Submitted By: Ana Alvarado
Submitting Department: City Secretary
Item Type: Discussion
Agenda Section: executive session action
Suggested Action:
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).
Background:
191