~~ DISTRICT OF TEXAS IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF TEXAS Special Order No. 2-85 1. By Special Order No. 2-84, the District Judges of this Court amended local criminal rules LCrR 47.l(h) and 57.3, amended local bankruptcy rules LBR 8006.1, 8006.4, 8006.5, 8010.1, and 8010.2, and repealed local bankruptcy rules LBR 8005.1, 8006.2, 8006.3, 8006.6, 8009.1, 8010.3, and 8010.4. Following receipt of public comment, the Court has determined to amend local criminal rules LCrR47.l(h) and 57.3, amend local bankruptcyrules LBR 8006.1,8006.4,8006.5,8010.1, and 801 0.2, and repeal local bankruptcy rules LBR 8005.1,8006.2, 8006.3,8006.6,8009.1 , 8010.3, and 8010.4, as set forth in the attachment to Special Order No. 2-84. Amended local criminal rules LCrR 47.l(h) and 57.3, and amended local bankruptcy rules LBR 8006.1,8006.4,8006.5,8010.1, and 8010.2 take effect on September 1,2015 and apply to all proceedings in criminal actions and bankruptcy appeals thereafter commenced and, insofar as just and practicable, all proceedings in criminal actions and bankruptcy appeals then pending. Local bankruptcyrules LBR 8005.1,8006.2,8006.3,8006.6,8009.1,8010.3, and 8010.4 are repealed effective September 1,201 5. The Clerk of Court is directed to make the necessary distribution. SO ORDERED. June 25,2015.
FOR THE COURT:
JORGE A. SOLIS CHIEF JUDGE
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IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF TEXAS FORT WORTH DIVISION UNITED STATES OF AMERICA § § VS. § ACTION NO. -CR- § DEFENDANT (2) § NOTICE OF FINAL VERSION OF JUROR QUESTIONNAIRE The parties to this cause filed lengthy witness lists on September 18, 1995, the deadline established by the scheduling order issued in this cause. The court has added question number 124 to the juror questionnaire, which asks if the jury panel member knows of has heard of any of the potential witnesses in this cause. Persons whose names are listed on both parties’ witness lists are listed only once in question number 124, where the names on both lists match identically. However, if the government’s list contained only a first initial and surname (i.e. “D. Lowrey”), and the defendant’s list contained a similar full name (i.e. “Debbie Lowrey”), both names are listed. Additionally, the Court has added Assistant United States Attorney _________’s name to question number 110. Finally, the Court modified the language of letter “m” on page twenty-nine of the questionnaire. A copy of the final version of the juror questionnaire is attached as an exhibit to this order. SIGNED September 20, 1995. ________________________________________ UNITED STATES DISTRICT JUDGE IN THE UNITED STATES DISTRICT COURT FOR THE NOTHERN DISTRICT OF TEXAS FORT WORTH DIVISION UNITED STATES OF AMERICA § § VS. § CRIMINAL NO. -CR- § DEFENDANT (2) § JUROR NO. ___________ JUROR INFORMATION SHEET INSTRUCTIONS: Your answers to the following questions are very important to the trial of this case, and are designed to shorten the jury selection process. Do not discuss any of these questions or your answers with anyone else, including any other prospective jurors. Please take as much time as is reasonably necessary to answer each question as completely and as honestly as possible. Please do not accept the assistance or the advice of anyone in answering these questions. If any questions should arise while completing this questionnaire, please contact the presiding judge. Do not speak to anyone else about the questionnaire or any questions you might have. YOUR ANSWERS TO THESE QUESTIONS ARE BEING GIVEN UNDER OATH The answers to these questions will be used by the Court and the attorneys solely for the selection of the jury in this case and for no other reason. The confidentiality of your answers to these questions will be maintained by the Court. Exhibit PLEASE PRINT YOUR ANSWERS PERSONAL 1. NAME: ___________________________________________________________ (first) (middle) (last) (maiden, if applicable) DATE OF BIRTH: ______________ AGE: ____ SEX: ____ RACE: __________ BIRTHPLACE: _____________________________ SSN: __________________ (city/town) (state) 2. ADDRESS: _______________________________________________________ (number and street) (city/town) (zip) HOME PHONE: (____)_____________ BUSINESS PHONE: (___)__________ 3. LENGTH OF TIME AT PRESENT ADDRESS: _________________________ 4. SINCE 1980 WHAT OTHER CITIES HAVE YOU LIVED IN AND FOR HOW LONG DID YOU LIVE IN EACH CITY? ______________________________ _________________________________________________________________ EMPLOYMENT 5. PLACE OF EMPLOYMENT: ________________________________________ 6. JOB TITLE OR DESCRIPTION: _____________________________________ BUSINESS HOURS: ______ LENGTH OF PRESENT EMPLOYMENT: _____ SUPERVISOR: _____________________________ 7. PLEASE LIST YOUR OCCUPATION OR EMPLOYMENT FOR THE PAST TEN (10) YEARS: _________________________________________________ _________________________________________________________________ _________________________________________________________________ 8. WHAT OTHER TYPES OF JOBS HAVE YOU HELD? ___________________ _________________________________________________________________ _________________________________________________________________ If you could change your profession, what would you change it to? ___________ _________________________________________________________________ FAMILY 9. MARTIAL STATUS: (circle appropriate answer(s)) a). Married b). Single c). Separated d). Divorced e). Spouse Deceased f). Previously Divorced (how many times ____) g). Living With Someone 10. NAME OF SPOUSE: _______________________________________________ (first) (middle) (last) (maiden, if applicable) 11. SPOUSE’S EMPLOYER: ____________________________________________ Job Title Or Description: _____________________________________________ Length Of Present Employment: _______________________________________ What Other Types Of Jobs Has Your Spouse Held? ________________________ __________________________________________________________________ 12. PLEASE INDICATE THE APPROXIMATE TOTAL ANNUAL GROSS INCOME OF YOUR HOUSEHOLD: UNDER $10,000 _________________ $10,000 TO $30,000 ____________ $30,000 TO $50,000 ______________ $50,000 TO $70,000 ____________ $70,000 TO $100,000 _____________ Over $100,000 _________________ 13. PLEASE PROVIDE THE FOLLOWING INFORMATION ABOUT YOUR CHILDREN AND STEPCHILDREN, IF ANY: Name Sex Age School or Occupation a. _____________________________________________________________ b. _____________________________________________________________ c. _____________________________________________________________ d. _____________________________________________________________ e. _____________________________________________________________ f. _____________________________________________________________ 14. IF YOU HAVE GRANDCHILDREN, HOW MANY? ___________________ 15. PLEASE PROVIDE THE FOLLOWING INFORMATION ABOUT YOUR PARENTS AND YOUR STEPPARENTS, IF ANY: Name Age City of Residence Retired Occupation/Employment (before retirement, if applicable) Father: ______________________________________________________________________ Mother: _____________________________________________________________________ Stepfather: ___________________________________________________________________ Stepmother: __________________________________________________________________ Were Your Parents Ever Divorced? ___________________________________ 16. PLEASE PROVIDE THE FOLLOWING INFORMATION ABOUT YOUR BROTHERS AND SISTERS, IF ANY? Name Sex Age School or Occupation a. ______________________________________________________________ b. ______________________________________________________________ c. ______________________________________________________________ d. ______________________________________________________________ e. ______________________________________________________________ f. ______________________________________________________________ EDUCATION 17. PLEASE GIVE YOUR EDUCATIONAL BACKGROUND. PLEASE INCLUDE HOW FAR YOU WENT IN SCHOOL; THE NAMES OF ANY TECHNICAL OR TRADE SCHOOLS ATTENDED; ANY COLLEGE AND GRADUATE SCHOOLS YOU HAVE ATTENDED, TOGETHER WITH MAJOR SUBJECT AND DEGREES RECEIVED, IF ANY: _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ 18. PLEASE GIVE YOUR SPOUSE’S EDUCATIONAL BACKGROUND: _________________________________________________________________ _________________________________________________________________ 19. ARE YOU OR YOUR SPOUSE PRESENTLY ENROLLED AS A STUDENT? IF SO, PLEASE GIVE DETAILS: _____________________________________ _________________________________________________________________ _________________________________________________________________ MILITARY 20. HAVE YOU EVER SERVED IN THE MILITARY? _____ IF SO, PLEASE GIVE THE FOLLOWING INFORMATION: Branch _____________, Years of Service ______________, Enlist? ____________, Re-enlist? _________ Highest grade or rank attained: ________________________________________ Duties: ___________________________________________________________ _________________________________________________________________ Did you serve in combat? _______________ Year Discharged? ______________ Type of Discharge: ___________________ Did you participate in any Courts Martial? ___________ Please Explain: __________________________________ _________________________________________________________________ Did you ever serve in the military police? ________________________________ 21. HAS YOUR SPOUSE EVER SERVED IN THE MILITARY? _____ IF SO, PLEASE GIVE THE FOLLOWING INFORMATION: Branch ___________, Years of Service _____________, Enlist? _________, Re-enlist? _____________ Highest grade or rank attained: ________________________________________ Duties: ___________________________________________________________ __________________________________________________________________ Did he/she serve in combat? __________________ Year Discharged? _________ Type of Discharge: _________________________ Did he/she participate in any Courts Martial? ____________ Please Explain: ___________________________ __________________________________________________________________ Did he/she ever serve in the military police? ______________________________ RELIGION 22. RELIGIOUS PREFERENCE: _________________________________________ Name And Location Of Church, Temple, Synagogue Or Other Religious Organization with which you are affiliated, if any: _________________________ __________________________________________________________________ Have you studied for the ministry, priesthood, rabbinic order, or any other clergy position? __________________________________________________________ __________________________________________________________________ 23. HOW OFTEN DO YOU ATTEND? __________________ Past or present church offices held: _________________________________________________ Other than attendance, what activities do you participate in at your church? _____ __________________________________________________________________ Have there been any recent changes in your religious activities? Yes __________ No _________ Please explain: _________________________________________ 24. WERE YOU RAISED IN A RELIGION DIFFERENT FROM THE ONE YOU NOW PRACTICE? _____ IF SO, PLEASE EXPLAIN: ____________________ _________________________________________________________________ 25. DOES YOUR SPOUSE PRACTICE A RELIGION DIFFERENT FROM YOURS? _____ IF SO, PLEASE EXPLAIN: ____________________________ 26. DOES YOUR SPOUSE PRACTICE A RELIGION DIFFERENT FROM YOURS? _____ IF SO, PLEASE EXPLAIN _____________________________ 26. DO YOU CURRENTLY, OR HAVE YOU IN THE PAST, SUPPORTED, OR ROUTINELY WATCHED OR LISTENED TO ANY RADIO OR TELEVISION MINISTRY? ________________________ IF SO, PLEASE INDICATE WHICH MINISTRY: _______________________________________________________ 27. DO YOU HAVE A PERSONAL PHILOSOPHY OR FAVORITE SAYING THAT REFLECTS YOUR PERSONAL PHILOSPHY THAT CAN BE EXPRESSED IN A FEW SENTENCES OR LESS? Yes ____ No ____ If yes, please state it: ______________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ POLITICAL 28. DO YOU HAVE A POLITICAL PREFERENCE? _________________________ Democrat ___________________ Republican ____________________ Independent _________________ Other ________________________ Does your spouse have a different preference? ______ If so, please explain: ____ _________________________________________________________________ 29. DO YOU IDENTIFY WITH OR SUPPORT A POLITICAL PARTY? IF SO, WHICH ONE? Democrat ___________________ Republication _________________ Independent _________________ Other ________________________ Is your spouse a member or supporter of a different party? __________________ If so, please explain: ________________________________________________ 30. DO YOU CONSIDER YOURSELF TO BE POLITICALLY CONSERVATIVE, MODERATE, OR LIBERAL? _______________________________ Does your spouse have a different political philosophy? ________________________ If so, please explain: _____________________________________________________ 31. HAVE YOU EVER SOUGHT OR HELD A POLITICAL OFFICE? __________ If yes, please give details: ____________________________________________ _________________________________________________________________ 32. HAVE YOU OR YOUR SPOUSE EVER WORKED IN A POLITICAL CAMPAIGN FOR A CANDIDATE OR FOR A POLITICAL GROUP, SEEKING CHANGE IN A LAW OR IN ENFORCEMENT OF A LAW? ______ If so, please describe: ________________________________________________ __________________________________________________________________ PHYSICAL/MEDICAL 33. DO YOU HAVE ANY DIFFICULTY IN READING OR WRITING? _________ If so, please explain: ________________________________________________ 34. DO YOU HAVE ANY DIFFICULTY IN SIGHT OR HEARING, OR DO YOU HAVE ANY OTHER DISABILITY OR DISEASE THAT WOULD MAKE JURY SERVICE A HARDSHIP FOR YOU? _____ if so, please explain: ____________ __________________________________________________________________ 35. ARE YOU CURRENTLY TAKING ANY MEDICATION? _________________ If so, please give the name of the medication and the reason you take it: __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ 36. ARE YOU OR ANY OF THE MEMBERS OF YOUR FAMILY CURRENTLY BEING TREATED FOR A MEDICAL ILLNIESS WHICH WOULD PREVENT OR IMPAIR YOUR JURY SERVICE? _________________________________ If so, please explain: ________________________________________________ _________________________________________________________________ 37. HAVE YOU, ANY FAMILY MEMBERS, OR ANY CLOSE FRIENDS EVER UNDERGONE COUNSELING, TREATMENT, OR HOSPITALIZATION FOR PSYCHIATRIC, EMOTIONAL, FAMILY, BEHAVIORAL, OR SUBSTANCE ABUSE PROBLEMS? _______________________________________________________ If so, please give details (including the name of the hospital and/or doctor/counselor seen): _________________________________________________________________ _________________________________________________________________ 38. DO YOU HAVE A FAMILY MEMBER, FRIEND, OR OTHER PERSON WITH WHOM YOU ARE ASSOCIATED WHO HAS BEEN DIAGNOSED AS MENTALLY RETARDED OR AS HAVING A LEARNING DISABILITY? ___ __________________________________________________________________ 39. HAVE YOU, YOUR SPOUSE, A RELATIVE, OR CLOSE FRIEND EVER WORKED IN A MENTAL HEALTH FACILITY OR HOSPITAL OF ANY KIND? If so, please describe: _________________________________________ _________________________________________________________________ 40. HAVE YOU EVER READ BOOKS OR ARTICLES DEALING WITH PSYCHIATRY, PSYCHOLOGY, MENTAL HEALTH OR MENTAL RETARDATION? If so, please describe: ________________________________ __________________________________________________________________ 41. DO YOU OR YOUR SPOUSE PERSONALLY KNOW ANY PSYCHIATRISTS OR PSYCHOLOGISTS? If so, please name: _____________________________ __________________________________________________________________ 42. HAVE YOU EVER TAKEN ANY COURSES IN THE FIELDS OF PSYCHIATRY OR PSYCHOLOGY? If so, please describe: _________________ __________________________________________________________________ 43. DO YOU HAVE ANY PREJUDICE IN FAVOR OF, AGAINST, OR ANY FIXED OPINIONS CONCERNING PSYCHIATRIC OR PSYCHOLOGICAL TESTIMONY? ______________________ If so, please explain: ________________________________________________ CAPITAL PUNISHMENT/DEATH PENALTY 44. DO YOU HAVE ANY MORAL, RELIGIOUS, OR PERSONAL BELIEFS THAT WOULD PREVENT YOU FROM SITTING IN JUDGMENT OF ANOTHER HUMAN BEING? YES ______ NO ______ 45. ARE YOU IN FAVOR OF THE DEATH PENALTY AS A PUNISHMENT FOR CRIME? YES ______ NO ______ Please explain: ___________________ __________________________________________________________________ __________________________________________________________________ 46. DO YOU BELIEVE THAT THE DEATH PENALTY SERVES ANY LEGITIMATE PURPOSE OR PURPOSES IN OUR SOCIETY? YES ________ NO ________ If so, what purpose or purposes do you believe that it serves? ____ __________________________________________________________________ __________________________________________________________________ 47. WITH REFERENCE TO THE DEATH PENALTY, WHICH OF THE FOLLOWING SIX STATEMENTS BEST REPRESENT YOUR BELIEFS: (circle one) a. “I believe that the death penalty is appropriate for all crimes involving murder.” b. “I believe that the death penalty is appropriate for some crimes involving murder and I could return a verdict which assessed the death penalty in a proper case.” c. “I believe that the death penalty is appropriate for some crimes involving murder, but I could never return a verdict which assessed the death penalty.” d. “Although I do not believe that the death penalty ever ought to be invoked, as long as the law provides for it, I could assess it, under the proper set of circumstances.” e. “I could never, regardless of the facts and circumstances, return a verdict which assessed the death penalty.” f. None of the above. 48. FOR WHAT CRIMES DO YOU THINK THE DEATH PENALTY SHOULD BE AVAILABLE? _________________________________________________ _________________________________________________________________ 49. DO YOU BELIEVE THAT THE DEATH PENALTY SHOULD BE USED MORE FREQUENTLY, LESS FREQUENTLY, ABOUT THE SAME AS IT HAS BEEN, OR NOT AT ALL, AS A PUNISHMENT FOR CRIME? ________ _________________________________________________________________ 50. DO YOU KNOW WHETHER YOUR RELIGION OR YOUR SPOUSE’S RELIGION HAS AN OFFICIAL POSITION IN REGARD TO THE USE OF THE DEATH PENALTY AS A PUNISHMENT FOR CRIME? YES ____ NO _______ If yes, what position has it taken? _____________________________ ________________________________________________________________ Does this conflict with your own personal feelings regarding the death penalty? ________________________________________________________________ ________________________________________________________________ 50a. DO YOU AND YOUR SPOUSE HAVE CONFLICTING BELIEFS REGARDING THE USE OF THE DEATH PENALTY AS A PUNISHMENT FOR CRIME? YES _____ NO _____ IF YES, HOW DO THEY CONFLICT? ________________________________________________________________ ________________________________________________________________ 51. DO YOU BELIEVE THAT THE DEATH PENALTY IS NOW BEING, OR HAS IN THE PAST BEEN, APPLIED IN A RACIALLY DISCRIMINATORY MANNER? YES ____ NO ____ PLEASE EXPLAIN: ____________________ ________________________________________________________________ ________________________________________________________________ 52. DO YOU HAVE ANY MORAL, RELIGIOUS, OR PERSONAL BELIEFS THAT WOULD PREVENT YOU FROM RETURNING A VERDICT WHICH WOULD ULTIMATELY RESULT IN THE EXECUTION OF ANOTHER HUMAN BEING? YES ____ NO ____ If yes, please explain: _______________________________________________ _________________________________________________________________ 52a. IF A SENTENCE OF LIFE WITHOUT THE POSSIBILITY OF PAROLE IS AN OPTION, COULD YOU NEVERTHELESS RECOMMEND A SENTENCE OF DEATH? YES ____ NO ____ Please explain: ____________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ PERSONAL 53. DO YOU OR THE MEMBERS OF YOUR IMMEDIATE FAMILY OWN A PET(S). If so, what kind? _____________________________________________ 54. WHAT KIND OF VEHICLE DO YOU DRIVE? __________________________ WHAT KIND OF VEHICLE DOES YOUR SPOUSE DRIVE? ______________ 55. TO WHICH CIVIC CLUBS, SOCIETIES, PROFESSIONAL ASSOCIATIONS, OR OTHER ORGANIZATIONS DO YOU BELONG? PLEASE INDICATE OFFICES HELD, IF ANY: __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ 56. DO YOU CONTRIBUTE MONEY OR SERVICES TO ANY CHARITABLE ORGANIZATION? If so, please describe: _______________________________ __________________________________________________________________ __________________________________________________________________ 57. ARE YOU OR YOUR SPOUSE A MEMBER OF (OR HAVE YOU EVER BEEN A MEMBER OF) ANY NEIGHBORHOOD, LOCAL, STATE, OR NATIONWIDE CRIME PREVENTION WATCH ORGANIZATION? YES ____ NO ____ If yes, please describe: _______________________________________ __________________________________________________________________ 58. WHAT ARE YOUR HOBBIES? ______________________________________ _________________________________________________________________ _________________________________________________________________ 59. DO YOU SUBSCRIBE TO AND/OR REGULARLY READ A NEWSPAPER? YES ____ NO ____ If yes, which one(s): _______________________________ _________________________________________________________________ 60. WHAT ARE YOUR FAVORATE MOVIES? ____________________________ _________________________________________________________________ 61. WHAT ARE YOUR FAVORATE TELEVISION SHOWS, OR WHICH SHOWS DO YOU REGULARLY WATCH? ____________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ 62. WHAT WAS THE LAST BOOK YOU READ? __________________________ 63. WHAT IS YOUR LEAST FAVORITE TYPE OF READING MATERIAL? ___ _________________________________________________________________ 64. HAVE YOU EVER READ A BOOK ABOUT A MURDER TRIAL? YES _____ NO _____ Which book or trial? ________________________________________ 65. WHAT IS YOUR FAVORITE RADIO STATION? _______________________ 66. DO YOU SUBSCRIBE TO OR REGULARLY READ ANY MAGAZINES? YES ____ NO ____ If so, which one(s)? ________________________________ _________________________________________________________________ 67. HAVE YOU EVER WRITTEN A LETTER TO THE EDITOR? YES _____ NO _____ If so, about what subject? ______________________________________ _________________________________________________________________ 68. DO YOU OR HAVE YOU DISPLAYED A BUMPER STICKER ON YOUR CAR? YES ____ NO ____ If yes, what was the message: ___________________ __________________________________________________________________ 69. HAVE YOU EVER BEEN OPPOSED TO ANY GOVERNMENT ACTION? YES ____ NO ____ If so, did you express your opposition? YES ____ No _____ How? ____________________________________________________________ __________________________________________________________________ 70. HAVE YOU EVER OWNED PERSONALIZED LICNESED PLATES? YES _____ NO _____ If yes, what was the message: ___________________________ 71. LIST FIVE INDIVIDUALS WHO ARE PUBLICLY KNOWN WHOM YOU MOST RESPECT: __________________________________________________ __________________________________________________________________ __________________________________________________________________ 72. HAVE YOU, A FAMILY MEMBER OR CLOSE FRIEND EVER HAD A BAD EXPERIENCE WITH A PERSON OF ANOTHER RACE? YES _____ NO ____ If yes, please explain: ________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ CRIMINAL JUSTICE SYSTEM/LAW ENFORCEMENT 73. HAVE YOU, YOUR SPOUSE, ANY FAMILY MEMBER, OR CLOSE FRIEND EVER BEEN ACCUSED, ARRESTED, INDICTED, CHARGED BY ANY MEANS, OR CONVICTED (including probation, deferred adjudication, conditional discharge, etc.) OF A CRIME OTHER THAN A TRAFFIC TICKET? YES ____ NO ____ If yes, please give details: ____________________________ __________________________________________________________________ __________________________________________________________________ 74. HAVE YOU, YOUR SPOUSE, OR ANY FAMILY MEMBER EVER USED THE SERVICES OF AN ATTORNEY FOR ANY REASON? YES ____ NO _____ If yes, please give details and name of attorney: _____________________ _________________________________________________________________ 75. DO YOU, YOUR SPOUSE, OR ANY FAMILY MEMBERS KNOW OR HAVE ANY FRIENDS WHO ARE ATTORNEYS? YES ____ NO ____ If yes, please give attorneys’ names and the types of practice they have: ___________________ __________________________________________________________________ 76. WHAT IS YOUR IMPRESSION OF PROSECUTORS IN GENERAL? _______ __________________________________________________________________ 77. WHAT IS YOUR IMPRESSION OF CRIMINAL DEFENSE ATTORNEYS IN GENERAL? _______________________________________________________ 78. PLEASE INDICATE WHICH OF THE FOLLOWING YOU BELIEVE WOULD BE THE GREATER WRONG: ___________ For a jury to find a guilty person “not guilty;” ___________ For a jury to find an innocent person “guilty.” 79. PLEASE RANK IN ORDER OF IMPORTANCE TO YOU THE FOLLOWING PURPOSES FOR PUNISHMENT IN A CRIMINAL CASE: __________ Punishment/retribution __________ Deterrence/prevention __________ Rehabilitation/reform 80. DO YOU KNOW ANYONE WHO HAS BEEN IN JAIL, OR WHO HAS BEEN TO PRISON, OR WHO IS IN PRISON? YES ____ NO ____ If yes, please give details: ___________________________________________________________ __________________________________________________________________ 81. HAVE YOU OR ANY MEMBER OF YOUR FAMILY EVER BEEN ASSOCIATED OR WORKED WITH ANY PROGRAM INVOLVED WITH THE PREVENTION OF CRIME, THE APPREHENSION OR PUNISHMENT OF OFFENDERS, OR THE REHABILITATION OF PERSONS CONVICTED OF A CRIME? YES ____ NO ____ If yes, please give details: _______________ __________________________________________________________________ __________________________________________________________________ 82. HAVE YOU, YOUR SPOUSE, ANY FAMILY MEMBER OR CLOSE FRIEND EVER BEEN THE VICTIM OF A CRIME, A WITNESS TO A CRIME, OR BEEN INTERESTED IN THE OUTCOME OF ANY CRIMINAL CASE (either personally or through the media)? YES _____ NO _____ If yes, please give details: ___________________________________________________________ _________________________________________________________________ 83. HAVE YOU EVER BEEN TO ANY OF THE FEDERAL, STATE, OR COUNTY COURTHOUSES BEFORE? YES ____ NO ____ If yes, for what reason: __________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ 84. HAVE YOU EVER USED THE SERVICES OF THE UNITED STATES ATTORNEY’S OFFICE OR ANY OTHER PROSECUTOR’S OFFICE (for example: hot checks, child support)? YES ____ NO ____ If yes, please give details: __________________________________________________________ ________________________________________________________________ 85. HAVE YOU OR YOUR SPOUSE EVER SERVED ON A GRAND JURY? YES ____ NO ____ If yes, please give details: _______________________________ _________________________________________________________________ 86. HAVE YOU OR YOUR SPOUSE EVER BEEN A JUROR IN A CIVIL CASE? YES ____ NO ____ Who (i.e. you, your spouse, or both)? __________________ When? _______________ What type of case? _______________________ Were You/spouse the foreperson? Yes _____ No ____ What Court was it in? ________ ______________Did the jury assess damages? Yes ____ No ____ Is there anything about your/your spouse’s experience as a juror in that case which would affect your service in this case? Yes ____ No ____ If yes, please give details: ___ _________________________________________________________________ 87. HAVE YOU OR YOUR SPOUSE EVER BEEN A JUROR IN A CRIMINAL CASE? YES ____ NO ____ Who (i.e. you, your spouse, or both)? ____________ _______________________ When? ____________________ What type of case? _______________________ Were you/spouse the foreperson? Yes ____ No ____ What Court was it in? _______________________________ Did the jury reach a verdict? Yes ____ No ____ What was your verdict? _______________________ Was the jury called upon to assess punishment? Yes ____ No ____ What was the punishment assessed: _____________ Is there anything about your/your spouse’s experience as a juror in that case which would affect your service in this case? Yes ____ No ____ If yes, please give details: _____________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ 88. HAVE YOU, YOUR SPOUSE, A RELATIVE OR CLOSE FRIEND, PRESENTLY OR IN THE PAST, BEEN A MEMBER OR EMPLOYEE OF A LAW ENFORCEMENT AGENCY OR ORGANIZATION? (Example: city, county, state or federal police officer; constable; deputy sheriff; ranger; Texas Department of Public Safety officer; auxiliary or reserve of any such organization or agency?) If so, please give name and describe: __________________________ __________________________________________________________________ __________________________________________________________________ 89. HAVE YOU, YOUR SPOUSE, A RELATIVE, OR CLOSE FRIEND EVER APPLIED FOR A JOB IN LAW ENFORCEMENT? If so, please describe: _______________________________________________________________ 90. HAVE YOU, YOUR SPOUSE, A RELATIVE, OR CLOSE FRIEND EVER BEEN CONNECTED WITH LAW ENFORCEMENT IN ANY OTHER WAY? If so, please describe: _____________________________________________ _______________________________________________________________ _______________________________________________________________ 91. HAVE YOU, YOUR SPOUSE, A RELATIVE, OR CLOSE FRIEND EVER STUDIED LAW? YES ____ NO ____ If yes, please give details: __________ _______________________________________________________________ _______________________________________________________________ 92. HAVE YOU, YOUR SPOUSE, A RELATIVE, OR CLOSE FRIEND EVER HAD AN UNPLEASANT EXPERIENCE INVOLVING LAW ENFORCEMENT? YES ____ NO ____ If yes, please give details: _________ _______________________________________________________________ 93. HAVE YOU, YOUR SPOUSE, A RELATIVE, OR CLOSE FRIEND EVER WORKED AS A SECURITY GURAD OR FOR A SECURITY SERVICE? If so, please give details: ________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ 94. DO YOU HAVE ANY STRONG PERSONAL FEELINGS ABOUT LAW ENFORCEMENT IN GENERAL, OR POLICE OFFICERS IN PARTICULAR? YES ____ NO ____ If yes, please explain: _____________________________ ________________________________________________________________ 95. WHAT IS YOUR PERSONAL OPINION ABOUT THE CRIMINAL JUSTICE SYSTEM AND THE WAY IT WORKS? ______________________________ ________________________________________________________________ 96. DO YOU BELIEVE THAT THERE ARE ANY CHANGES WHICH WE COULD MAKE IN OUR CRIMINAL JUSTICE SYSTEM WHICH WOULD MAKE IT MORE EFFICIENT IN DEALING WITH THE PROBLEM OF CRIME? YES ____ NO ____ If so, what changes could be made? ___________ ________________________________________________________________ 97. DO YOU BELIEVE THAT TRIAL BY JURY IS THE BEST SYSTEM FOR THE TRIAL OF CRIMINAL CASES? YES ____ NO ____ What factors about the jury trial system make you feel this way? ____________________________ _________________________________________________________________ _________________________________________________________________ 98. DO YOU BELIEVE THE QUESTION OF PUNISHMENT, ONCE A PERSON HAS BEEN FOUND GUILTY OF A CRIME, SHOULD BE DECIDED BY A JUDGE OR BY A JURY? __________________________________________________________________ 99. DO YOU BELIEVE THAT THE DEATH PENALTY SHOULD BE ASSESSED BY A JUDGE OR BY A JURY? ______________ Why do you believe this method is more appropriate? __________________________________________ __________________________________________________________________ __________________________________________________________________ 100. DO YOU BELIEVE THAT A PERSON WHO IS CHARGED WITH COMMITTING A VIOLENT CRIME SHOULD BE ALLOWED TO BE RELEASED FROM CUSTODY ON A REASONABLE BAIL PENDING THE TRIAL OF THAT CASE? ____________________________________________ __________________________________________________________________ __________________________________________________________________ 101. DO YOU BELIEVE THAT MOST PEOPLE CHARGED WITH HAVING COMMITTED A CRIME ARE ACTUALLY GUILTY OF THAT CRIME? ____ __________________________________________________________________ 102. DO YOU BELIEVE THAT MOST EYEWITNESSES TO VIOLENT CRIMES ARE GENERALLY RELIABLE IN THEIR RECOLLECTIONS OF THE FACTS? __________________________________________________________ __________________________________________________________________ __________________________________________________________________ 103. HAVE YOU EVER BEEN ACCUSED OF DOING SOMETHING THAT YOU DID NOT DO? If yes, please explain: ___________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ 104. HAVE YOU EVER VISITED INSIDE A PRISON OR A JAIL? YES ____ NO ____ If yes, what was your impression? _________________________________ __________________________________________________________________ __________________________________________________________________ 105. DO YOU BELIEVE OUR PENAL SYSTEM IS EVER SUCCESSFUL IN REHABILITATING/REFORMING PERSONS CONVICTED OF CRIME? YES ____ NO ____ Please explain your answer: ______________________________ __________________________________________________________________ __________________________________________________________________ 106. DO YOU BELIEVE THAT INNOCENT PEOPLE EVER ACTUALLY GET CONVICTED OF CRIMES? __________________________________________ 107. DO YOU BELIEVE THAT THERE IS MORE, LESS, OR ABOUT THE SAME AMOUNT OF VIOLENT CRIME IN TARRANT COUNTY AS THERE WAS TEN YEARS AGO? ____________________________ If you believe there is more or less crime now, for what reason do you believe there has been a change? __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ CASE SPECIFICS 108. DO YOU KNOW OR BELIEVE YOU KNOW, ANYTHING ABOUT THE FACTS OR PURPORTED FACTS OF THIS CASE, EITHER FROM THE NEWSPAPER, TV OR OTHER SOURCES? _____________________________ If so, what facts or purported facts and from what source: ___________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ 109. DO YOU KNOW OR HAVE YOU HEARD OF EITHER OF THE DEFENSE ATTORNEYS IN THIS CASE, ___________ or ______________? YES ____ NO ____ If yes, how do you know them or what have you heard about them? __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ 110. DO YOU KNOW OR HAVE YOU HEARD OF ANY OF THE PROSECUTORS IN THIS CASE, ___________, __________, ________, ________________? YES _____ NO _____ If yes, how do you know them or what have you heard about them? ______________________________________ __________________________________________________________________ __________________________________________________________________ 111. DO YOU KNOW OR THINK YOU MIGHT KNOW THE DEFENDANT IN THIS CASE, ___________, OR ANY OF HIS FAMILY? YES _____ NO _____ If yes, in what capacity? _______________________________ __________________________________________________________________ 112. DID YOU KNOW [victim] DURING HER LIFETIME? YES ____ NO ____ If yes, in what capacity? ______________________________________________ 113. DO YOU KNOW ANY OF [victim’s] FAMILY MEMBERS? YES ____ NO ____ If yes, who and in what capacity? __________________________________ __________________________________________________________________ 113a. HAVE YOU EVER BEEN TO OR RESIDED IN PINE BLUFF, ARKANSAS AND/OR ELDORADO, ARKANSAS? YES ____ NO ____ If yes, why, when, and how long were you at each place? ___________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ 114. DO YOU KNOW JUDGE ________ OR ANY OF THE COURT PERSONNEL? YES ____ NO ____ If so, please list their names and in what capacity you know them: _____________________________________________ __________________________________________________________________ 115. DO YOU KNOW _________, THE UNITED STATES ATTORNEY FOR THE NORTHERN DISTRICT OF TEXAS, OR ANY OTHER MEMBERS OF HIS STAFF? YES ____ NO ____ If so, please list their names and in what capacity you know them: _____________________________________________ __________________________________________________________________ 116. DO YOU KNOW ANY OF THE OTHER PROSPECTIVE JURORS IN THIS CASE? YES ____ NO ____ If so, please list their names and in what capacity you know them: ________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ 117. DO YOU CURRENTLY HAVE ANY PERSONAL PROBLEMS THAT WOULD PREVENT YOU FROM GIVING YOUR FULL ATTENTION TO THE TESTIMONY DURING THE TRIAL? YES ____ NO ____ If yes, please explain: ___________________________________________________________ __________________________________________________________________ __________________________________________________________________ 118. IF YOU HAVE ANY PLANS TO BE OUT OF THE FORT WORTH AREA DURING OCTOBER AND/OR EARLY NOVEMBER 1995, PLEASE INDICATE THE DATES AND THE REASON FOR YOUR ABSENCE: ______ __________________________________________________________________ __________________________________________________________________ 119. HOW DO YOU FEEL ABOUT BEING ASKED TO ANSWER THE QUESTIONS CONTAINED IN THIS JUROR INFORMATION SHEET? ______ __________________________________________________________________ __________________________________________________________________ 120. HAVE YOU, FROM ANY SOURCE, FORMED AN OPINION IN THIS CASE? YES ____ NO ____ Please explain what opinion you have: __________________ __________________________________________________________________ 121. DO YOU WANT TO SERVE AS A JUROR IN THIS CASE? YES _____ NO _____ Please explain: _______________________________________________ __________________________________________________________________ 122. IS THERE ANY INFORMATION ABOUT YOU WHICH YOU FEEL THE JUDGE AND THE ATTORNEYS SHOULD KNOW IN REFERENCE TO YOUR ABILITY TO SERVE AS A JUROR IN THIS CASE THAT HAS NOT BEEN SET FORTH ABOVE? YES _____ NO _____ If yes, please explain: ____ __________________________________________________________________ __________________________________________________________________ 123. DO YOU BELIEVE THAT THERE MAY BE ANY REASON WHY IT WOULD BE DIFFICULT OR IMPOSSIBLE FOR YOU TO BE COMPLETELY FAIR AND IMPARTIAL IN THIS CASE? __________________ If so, what reason is there? _____________________________________________________ __________________________________________________________________ 124. DO YOU KNOW OR HAVE YOU HEARD OF ANY OF THE FOLLOWING POTENTIAL WITNESSES IN THIS CAUSE:
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PRO SE HANDBOOK FOR CIVIL SUITS UNITED STATES DISTRICT COURT Northern District of Texas (Revised September 13, 2010) UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF TEXAS Office of the Clerk Karen Mitchell Clerk of Court TO PRO SE LITIGANTS: It is my honor to serve the judges, attorneys, and members of the public who use our services. This manual is intended to provide helpful information to pro se litigants on civil cases. You are reminded that litigation in federal court is a complex process. You must follow the Federal Rules of Civil Procedure and the Local Rules of this Court. We strive to provide all customers with accurate assistance on available forms and filing procedures, but the Clerk’s Office cannot give legal advice regarding the prosecution or defense of any case. Please see our website at www.txnd.uscourts.gov for additional information, including instructions on electronic case filing. (Non-prisoner pro se litigants may participate unless prohibited by the presiding judge.) You will also find answers to some of the most Frequently Asked Questions. We welcome your feedback on this manual and our services. Karen Mitchell Clerk, United States District Court Northern District of Texas TABLE OF CONTENTS 1. Introduction A. Overview B. Public Office Hours and Locations C. Legal Holidays 2. Questions to Ask Before Filing a Lawsuit A. Does the law recognize my injury? B. Have I waited too long to sue? C. Who are the right defendants? D. What facts and evidence support my case? E. Have I exhausted administrative remedies? 3. Jurisdiction – Should I File My Complaint in the U.S. District Court, Northern District of Texas? 4. Basics for Filing a Case in the Northern District of Texas A. What are the Federal and Local Rules of Civil Procedure? B. What should I put in my Complaint? C. Civil Case Filing Requirements D. How much does it cost? E. Service of Process F. What is the Electronic Case Filing System (ECF)? G. Consent to Proceed Before a Magistrate Judge 5. Motions – How Do I Ask the Judge to Do Things? A. Compliance with Local Rule 7.1 B. Other Papers Required to Accompany a Motion C. No Oral Argument or Instant Ruling on Motions 6. Serving Documents – Do I Have to Give the Defendant(s) Copies of Everything I File? 7. Discovery – How Do I Get Evidence to Help Me Prove My Case? A. Depositions B. Interrogatories C. Requests for Production of Documents D. Requests for Admission E. Physical or Mental Examination 8. If I Can’t Find a Lawyer, But I Want One, What Should I Do? 9. Sanctions – What Are They? 10. If I Did Not Prevail, How Do I Appeal My Case? A. General B. Designation of Record C. Questions About the Status of Your Appeal 11. If I Did Prevail, How Do I Enforce the Judgment? A. Bill of Costs B. Registration in Another District C. Registration in the Northern District D. Writ of Execution E. Abstract of Judgment 12. List of Available Forms A. Civil Complaint (General) and Civil Cover Sheet B. Certificate of Interested Persons C. Application to Proceed Without Prepayment of Fees D. Summons in a Civil Action E. Motion to Appoint Counsel and Declaration in Support F. Notice of Appeal 13. Glossary of Terms Used in Civil Litigation 1. Introduction A. Overview The Court has prepared this manual for you as someone who is interested in filing a lawsuit or must appear in a lawsuit pro se, or without a lawyer. (“Pro se” is Latin phrase meaning “for himself” or “for herself.”) It will help you understand the basics of the legal process but will not teach you about the law. For that, you must do your own research. This manual is not a substitute for having your own lawyer. You are urged to hire a lawyer, if possible. Chapter 2 will help you decide whether you should file your lawsuit here. If you do, Chapters 3 through 10 will explain how to file it, and how it will proceed once you do. At the end, there is a glossary of legal terms that may be unfamiliar to you. Please visit our website at www.txnd.uscourts.gov for access to the Local Rules and Federal Rules of Civil Procedure, court forms, and Electronic Case Filing information. (When you register for electronic filing, you may file documents from the convenience of your home, and you will receive email notification when the opposing side files a document or the Court enters an order, as soon as its entered on the docket.) If, after reading this Handbook and reviewing the materials available on our website, you still have questions about your case, you may wish to contact the Clerk’s Office. Please understand that court employees may not give legal advice. This means they cannot interpret rules or a judge’s order, calculate a deadline, give advice on how to proceed, or speculate on the outcome of a matter. B. Locations and Office Hours ` The Clerk’s Office has seven divisional offices, which are open Monday through Friday, except legal holidays. Their locations and public office hours are shown below: Abilene – Division 1 341 Pine Street, Room 2008 Abilene, Texas 79601-5928 Phone (325) 677-6311 8:30 a.m. – 12:00 p.m., 1:00 p.m. – 4:30 p.m. Amarillo – Division 2 205 E. Fifth Street, Room 133 Amarillo, Texas 79101-1559 Phone (806) 468-3800 8:30 a.m. – 12:00 p.m., 1:00 p.m. – 4:30 p.m. Dallas – Division 3 1100 Commerce Street, Room 1452 Dallas, Texas 75242-1310 Phone (214) 753-2200 8:30 a.m. – 4:30 p.m. Fort Worth – Division 4 501 West 10th Street, Room 310 Fort Worth, Texas 76102 (817) 850-6600 8:30 a.m. – 4:30 p.m. Lubbock – Division 5 1205 Texas Avenue, Rom 209 Lubbock, Texas 79401-4091 8:30 a.m. – 12:00 p.m., 1:00 p.m. – 4:30 p.m. San Angelo – Division 6 33 East Twohig Street, Room 202 San Angelo, Texas 76903-6451 8:30 a.m. – 12:00 p.m., 1:00 p.m. – 4:30 p.m. Wichita Falls – Division 7 1000 Lamar Street, Room 203 Wichita Falls, Texas 76301-3431 8:30 a.m. – 12:00 p.m., 1:00 p.m. – 4:30 p.m. If you mail a filing to the Court, address your envelope to the Hon. Karen Mitchell, Clerk of Court, at the correct divisional office. (Return to Table of Contents) C. Legal Holidays The District Clerk’s Office is closed on the following holidays: • New Year’s Day • Martin Luther King, Jr.’s Birthday • George Washington’s Birthday (commonly referred to as President’s Day) • Memorial Day • Independence Day • Labor Day • Columbus Day • Veterans Day • Thanksgiving Day • Christmas Day If the Clerk’s Office is closed by the Court on any other day, or due to inclement weather, closure information will be posted on the Court’s website at www.txnd.uscourts.gov. (Return to Table of Contents) 2. Questions to Ask Before Filing a Lawsuit Filing a lawsuit does not necessarily mean that you will get the result you want. There are five important questions to ask before you file a lawsuit in federal court. There are other questions you may also need to consider, depending on your case, but the list below is a good place to start. A. Does the law recognize my injury? A lawsuit requires a legal injury that the law recognizes and for which it provides a remedy. Many things that are “wrong” are not illegal. Which statute or court decision do you think that the defendant has violated? After you have determined that you have a legal claim, you must decide whether this court is the proper court to hear your lawsuit. B. Have I waited too long to file a lawsuit? The “statute of limitations” sets a time limit within which a lawsuit can properly be filed. If the deadline has passed before you file suit, the Court may dismiss your case. Whether your claim is barred by a statute of limitations is a question that may require legal research on your part. C. Who are the right defendants? You may only sue defendants whom you believe are responsible for the wrong you have suffered. When you write your complaint, include facts (such as specific dates, names, and events) that support the relief you seek against each person you have sued. Listing a name in the caption of the complaint is not enough. If the main part (or “body”) of the complaint does not say what a person listed in the caption did wrong, that person could be dismissed from your case. D. What facts and evidence support my case? The person who brings a claim in federal court, known as the “plaintiff,” has the “burden of proof.” That means the plaintiff must establish that some injury under law actually happened. You should not sue someone whom you will not be able to show violated your rights. You need facts to support your claims, and evidence, such as medical or police reports, a witness who saw what happened, or other proof is helpful. E. Have I exhausted administrative remedies? If you want to appeal the decision of a governmental agency, the law may require you to complete all of the agency’s administrative procedures for appealing its rulings before you file a lawsuit. For example, the denial of an application for social security benefits can be appealed to a federal court only after a final decision on the application is issued by the Commissioner of the Social Security Administration. Similarly, a claim of employment discrimination must be filed with the Equal Employment Opportunity Commission (EEOC) or its partner state agencies before a claim may proceed in federal court. Time limits often apply, so you are encouraged to visit an agency’s website to learn more information or access available forms. For your convenience, the Social Security Administration’s website is www.ssa.gov, and the EEOC’s website is www.eeoc.gov. You may be able to find other agencies’ websites easily through the federal government’s information website www.info.gov or by calling (800) FED-INFO (800.333.4636). (Return to Table of Contents) 3. Jurisdiction – Should I file my complaint in the U.S. District Court, Northern District of Texas? There are two different court systems in the United States: state courts and federal courts. Before you file a case in federal court, first make sure it has jurisdiction over your potential lawsuit, which means the power to hear and decide certain cases. State courts may hear almost any type of case, including civil, domestic (divorce, child custody, and child support), probate and property disputes. However, federal courts, such as the U.S. District Court for the Northern District of Texas, may only hear certain types of cases. For a federal court to have jurisdiction over your case, one of the following must apply: • Your claim is that a federal law or the U.S. Constitution has been violated (“Federal Question” jurisdiction); • You intend to sue the United States government (“U.S. Government Defendant” jurisdiction); or • You are a citizen of a different state than the defendant(s) and you claim to be owed at least $75,000 (“Diversity” jurisdiction). If you believe that a federal court will have jurisdiction over your case, you must file your case in the right district. Each state has one or more federal district courts. Texas has four – the Northern District, the Eastern District, the Western District, and the Southern District. Each district has one or more divisional offices that serve specific counties within the district. The seven divisions in the Northern District of Texas serve the 100 counties below: • Abilene Division – Callahan, Eastland, Fisher, Haskell, Howard, Jones, Mitchell, Nolan, Shackelford, Stephens, Stonewall, Taylor, and Throckmorton; • Amarillo Division – Armstrong, Brisco, Carson, Castro, Childress, Collingsworth, Dallam, Deaf Smith, Donley, Gray, Hall, Hansford, Hartley, Hemphill, Hutchinson, Lipscomb, Moore, Ochiltree, Oldham, Parmer, Potter, Roberts, Randall, Roberts, Sherman, Swisher, and Wheeler; • Dallas Division – Dallas, Ellis, Hunt, Johnson, Kaufman, Navarro, and Rockwall; • Fort Worth Division – Commanche, Erath, Hood, Jack, Palo Pinto, Parker, Tarrant, and Wise; • Lubbock Division – Bailey, Borden, Cochran, Crosby, Dawson, Dickens, Floyd, Gaines, Garza, Hale, Hockley, Kent, Lamb, Lubbock, Lynn, Motley, Scurry, Terry, and Yoakum; • San Angelo Division – Brown, Coke, Coleman, Concho, Crockett, Glasscock, Irion, Menard, Mills, Reagan, Runnels, Schleicher, Sterling, Sutton, and Tom Green; and • Wichita Falls Division – Archer, Baylor, Clay, Cottle, Crockett, Foard, Hardeman, King, Knox, Montague, Wichita, Wilbarger, and Young. Generally, your lawsuit should be filed in the division where the defendant resides or where the facts giving rise to your lawsuit occurred. (Return to Table of Contents) 4. Basics for Filing a Case in the Northern District of Texas A. What are the Federal and Local Rules of Civil Procedure? Every plaintiff and defendant must follow the rules of the court in which the case is filed. In the Northern District of Texas there are several sets of rules you must follow. Some rules apply in every federal court in the country. They include the Federal Rules of Civil Procedure (FED. R. CIV. P.), which control everything from the filing of the complaint to the jury’s verdict. Other national rules include the Federal Rules of Evidence, which control what evidence may be used to decide the case; and the Federal Rules of Appellate Procedure, which control how you can appeal the judge’s decisions if you disagree with them. Copies of these rules can be found on the United States’ Courts website at http://www.uscourts.gov/RulesAndPolicies/FederalRulemaking/RulesAndForms.aspx. Due to budget constraints, we are unable to provide copies of these rules. In addition to the rules that apply in all federal courts, this Court also has Local Rules that you must follow. The numbering system of the Local Rules corresponds with the numbering system of the Federal Rules for easy reference. It is important to remember that, as a pro se litigant, you are responsible for knowing and following the court’s Local Rules and procedures. These rules are available on the court’s website at http://www.txnd.uscourts.gov/rules/localrules/lr_civil.html. We can provide you a copy upon your request. If your case needs to be filed in another court, contact the Clerk’s Office of that court for information regarding local rules and procedures for filing your case. B. What Should I Put in My Complaint? A civil case in federal court starts when you file your Complaint. Rule 8(a) and Rule 10 of the Federal Rules of Civil Procedure (FED. R. CIV. P.) require you to: 1. List the names, address, and telephone number of each plaintiff, and the name and address of each defendant; 2. Say why you believe this court has the power to decide your case (i.e., that it has jurisdiction over your lawsuit); 3. Explain why you believe that each defendant violated the law and is responsible for your injuries; 4. Number each paragraph in your complaint and limit, as much as possible, each paragraph to a single set of circumstances; 5. State what legal injuries you claim to have suffered and what persons are responsible for each such legal injury; 6. Clearly state what you are asking the Court to do if you prevail; and 7. Sign it at the bottom. (Each plaintiff must sign. See “signature block” instructions in Section C below.) You are not required to use a particular form of complaint, but the Clerk’s Office has a Complaint form that you may use. See section 12 of this manual. If you wish to demand a jury trial, you may file it as a separate document or request it in the Complaint. (Checking the “Jury Demand” box on the Civil Cover Sheet is not sufficient to request a jury trial.) If you request it in the Complaint, the title of the Complaint must also state “. . . And Jury Demand.” There is no fee to file a jury demand. C. Civil Case Filing Requirements You must sign all documents that you file with the Clerk (see FED. R. CIV. P. 11(a)). Each document should include a “block” of information underneath your signature that includes your typed or printed name, address, telephone number, and fax number (if available). If you register for Electronic Case Filing (You may register as soon as you file your complaint!), and electronically file future documents over the Internet, you must add your email address to the bottom of this “signature block.” To sign a document that you will electronically file, you may print, sign, and scan your document before filing, use an electronic graphical signature, or represent your signature as “s/ Typed Name,” above the “signature block” of information. In addition to preparing your Complaint, the Local Rules require you to submit a: • Civil Cover Sheet, which helps the Clerk enter statistical data correctly; • a separately signed certificate of interested persons, which is a list of all legal entities that are financially interested in the outcome of the case (The judge needs this information to determine if he or she may preside over the case or must ask the Clerk to assign another judge to avoid a conflict of interest.); • a Summons in a Civil Case form for each named defendant (If the filing fee was not paid, the Clerk cannot issue a summons until the judge grants you the right to proceed in forma pauperis, or “without payment of fee,” and directs the clerk to issue the summons. These forms are available as attachments to printed copies of this manual. When you deliver or mail your complaint to the Clerk (filing by fax is never permitted absent judge approval), a deputy clerk will assign it a case number and a judge. If the division has more than one district judge, the Clerk will use a computerized system to randomly select the judge. If the district judge automatically seeks the help of a magistrate judge, the Clerk must “refer” the case. If there is more than one magistrate judge in the division, the Clerk will use the same the system to randomly select the magistrate judge. In those divisions, the Clerk has been ordered to follow a random assignment method and cannot “give” anyone a specific judge. Please see the Court’s website at www.txnd.uscourts.gov under Filing/Filing Procedures for more information on Civil Case procedures. D. How Much Does It Cost? The fee to file almost any non-prisoner civil action in federal court is $400.00. If you believe you cannot afford to pay the filing fee, you may file an Application to Proceed In Forma Pauperis and Declaration in Support (see Section 12). If the judge grants your application, you will be allowed to proceed without prepayment of the fee. Copies of these forms are included as attachments to the end of this manual. E. Service of Process To serve a defendant a copy of your Complaint, follow the procedures found under Rule 4 of the Federal Rules of Civil Procedure. Generally, a copy of the Complaint is served under a Summons issued by the Clerk. To issue the Summons, the Clerk must sign, date, and emboss or append the Court’s seal. Rule 4(c)(2) provides for personal service by anyone 18 years of age or older, who is NOT a party to the suit. Other common methods of service are described below: • Service by the United States Marshal – If you are granted in forma pauperis status, the judge may order the U.S. Marshal to complete service for you. You will still be required to prepare the Summons form and the USM Form 285, and provide necessary copies of your Complaint for service. • Service by mail – Service may be made by mailing the Summons and a copy of the Complaint to each defendant by registered or certified mail, return receipt requested. See FED. R CIV. P. 4(e)(1); TEX. R. CIV. P. 106. • Service through the Secretary of State – For service on companies formed or registered in Texas through the Secretary of State, please refer to the Texas Long Arm Statute. See section 17.041 of the TEX. CIV. PRAC. & REM. CODE. • Service on the United States – Rule 4(i) of the Federal Rules of Civil Procedure governs service on the United States of America, the Attorney General, and the agencies, officers, employees, and corporations of the United States. The United States Attorney’s Office can be served personally or via registered or certified mail addressed as follows: Civil Process Clerk U.S. Attorney for the Northern District of Texas Division Name Address City, State & Zip Code See the Guide for Filing Federal Civil Suits Against the United States, an Agency Official, or an Employee of the United States Government in the Northern District of Texas on the court’s website at www.txnd.uscourts.gov under Filing/Filing Procedures for more information on filing a civil suit against the United States. • Waiver of Service – Rule 4(d) of the Federal Rules of Civil Procedure says that a defendant has a duty to avoid unnecessary expenses of serving the summons. You must send the defendant a Notice of Lawsuit and Request for Waiver of Service of Summons form, two copies of a Waiver of Service of Summons form, a copy of the complaint, and a prepaid means for returning the form. The defendant must be given a reasonable time of at least 30 days after the request was sent – or at least 60 days if sent to the defendant outside any judicial district of the United States, to return the executed Waiver of Service of Summons form to you. Waiver of service is accomplished when the defendant consents to the waiver and completes and returns a waiver form. The defendant may decline to waive service using the same form. F. What is the Electronic Case Filing System (ECF)? Cases filed in the Northern District of Texas are maintained electronically through the court’s Electronic Case Filing (ECF) system. The electronic version of the docket and associated documents comprise the official record of the court. Remote access to the record is granted through the court’s ECF system or the federal judiciary’s Public Access to Court Electronic Records (PACER) system. Under LR 5.1(e) and the court’s ECF Administrative Procedures, you must file a Complaint on paper but must file any other pleading, motion, or other paper by electronic means. These procedures include instructions on registration and electronic filing. Additionally, you should refer to FED. R. CIV. P. 5.2 for the requirements to redact private information. When a document is docketed, you will receive email notification as soon as its entered on the docket, and you will be able to access the document one time, free of charge. Docket sheets and images of this and other federal courts’ documents are also available for a small fee through the Judiciary’s Public Access to Court Electronic Records (PACER) system. PACER registration is free, and most documents cost only $.10 per page to download, with a maximum charge of $2.40 per document. (Court transcripts are higher.) See the PACER website at www.pacer.psc.uscourts.gov to register or call the PACER Service Center at (800) 676-6856. G. Consent to Proceed Before a Magistrate Judge A magistrate judge may, upon the consent of all parties in a civil action, conduct any or all proceedings, including a jury or non-jury civil trial, and order entry of a final judgment pursuant to 28 U.S.C. § 636. If all parties involved in a case consent, the presiding district judge may enter an order of transfer, and reassign the case to a magistrate judge. Your decision to consent, or not to consent, to the reassignment of the case to a magistrate judge is entirely voluntary and without any adverse consequences if you choose not to. Communicate your decision to the Clerk’s Office using the docket event entitled Consent to Proceed Before a United States Magistrate Judge found in the ECF system. (Return to Table of Contents) 5. Motions – How Do I Ask the Judge to Do Things? A. Compliance with Local Rule 7.1 A motion is an application or request made to the judge. Be aware of the Local Rules regarding motions practice (Local Rule 56.1 for summary judgment motions, and Local Rule 7.1 for other motions). All motions must comply with the Local Rules or the court may “strike” or disregard them. Motions are used to seek various types of relief while a lawsuit is pending, such as a motion to amend pleadings or a motion to compel discovery. A note of caution: motions should only be filed when necessary; multiple or frivolous motions can result in penalties by the court. Responses to motions must be filed with the Clerk’s Office and served on the opposing party within at least 21 days after the motion was filed, and a reply must be filed and served within 14 days after the response was filed. Failure to file a response or reply within the time prescribed may subject the motion to summary ruling. Motions for summary judgment have different time frames for briefing. See Local Rule 56.1. The court may modify any of the above schedules. B. Other Papers Required to Accompany a Motion In addition to the general requirements, other papers described below, may be required to accompany your motion: 1. Brief or Memorandum of Law A brief in support must be filed in support of certain motions. See LR 7.1, LCrR 47.1; http://www.txnd.uscourts.gov/rules/localrules/civilrules7.html#71. If the brief is included in the motion, the document should be titled “Motion and Brief in Support.” Except by permission of the presiding judge, or as provided in LR 56.5(b), your brief must not exceed 25 pages (excluding the table of contents and table of authorities). (The opposing side may file a response with the same page limit. If you file a “reply,” it must not exceed ten pages, and you must obtain the judge’s permission to file any other document than those addressed in LR 7.1.) Permission to file a brief in excess of this page limitation will be granted only for extraordinary and compelling reasons. See LR 7.2(c) and LCrR 47(c). A brief filed in a bankruptcy appeal must comply with the Federal Rules of Bankruptcy Procedure unless otherwise directed by the presiding judge. A brief exceeding ten pages must contain a table of contents and a table of authorities. The table of authorities must include an alphabetically arranged table of cases, statutes, and other authorities cited, with page references to the location of all citations. See LR 7.2 (d) and LCrR 47.2 (d). The court may modify any of the above limitations. 2. Appendix Documentary or non-documentary evidence used to support or oppose a motion must be included in an appendix. See LR 7.1(i) for specific appendix format requirements. The appendix must be assembled as a separate, self-contained document. Each page of the appendix must measure 8 1/2 x 11 inches, and each page must be numbered legibly in the lower, right-hand corner sequentially through the last page of the entire appendix. A non-documentary or oversized exhibit must be placed in a 9 x 12 inch envelope that is numbered as if it were a single page. If a party’s motion or response is accompanied by an appendix, the party’s brief must include citations to each page of the appendix that supports each assertion regarding the documentary or non-documentary evidence used to support or oppose the motion. See LR 7.2(e). 3. Certificate of Conference When you file some motions, you must contact the attorney for the defendant to discuss your motion and state defendant’s position in a Certificate of Conference, usually found at the end of a motion. See LR 7.1(a), LCrR 47.1(a). 4. Proposed Order Granting the Motion Unopposed motions must be accompanied by an agreed proposed order, signed by the attorneys or parties. In addition, an opposed motion submitted by electronic means must be accompanied by a proposed order using the instructions found in the Proposed Order docket event. A proposed order must be submitted separately from the motion, and should have a place for the judge to sign if the motion is granted. See LR 7.1(c). C. No Oral Argument or Instant Ruling on Motions Local Civil Rule 7.1(g) provides that, unless otherwise directed by the presiding judge, oral argument on a motion will not be held. It is not uncommon for district and magistrate judges to be in trial on other matters for the duration of the day. A file and a motion for emergency relief may not reach the judge until a break for lunch or the end of the day. If your motion is not emergency in nature, it may be several days, or several weeks, before a ruling is forthcoming, depending on the deadlines for the opposing side to respond, the nature of the case, the judge’s trial schedule, and the judge’s docket load. Whether a motion be emergency or not in nature, the judge will typically review the record and pleadings on file and enter an order that will be provided to all parties of record. There is no need to wait in the Clerk’s Office for a ruling on an emergency motion. It is best to notify a supervisor that you have filed an emergency motion and place all of your contact information (including your mobile phone number, if available) on your pleadings. The supervisor will ensure that a deputy clerk contacts you immediately should the judge need to see you or a ruling is issued in your case. (Return to Table of Contents) 6. Serving Documents Do I have to give the defendant(s) copies of everything I file? Yes! Even if you are proceeding in forma pauperis, you must serve an identical copy of each document you file on every attorney or party who has made an appearance in the case. (See Rule 5 of the Fed. R. Civ. P.) It is also a good idea for you to keep a copy of each document you file. Sample language you may use to complete the Certificate of Service at the end of each document you serve: • On (Date) I filed the foregoing document with the clerk of court for the U.S. District Court, Northern District of Texas, using the ECF system. I hereby certify that I have served all counsel and/or pro se parties of record electronically or by another manner authorized by FED. R. CIV. P. 5 (b)(2). /Signature/ • I hereby certify that on (Date) , I forwarded a copy of the foregoing document to , the attorney for (Defendant) at the address of . /Signature/ (Return to Table of Contents) 7. Discovery – How Do I Get Evidence to Help Me Prove My Case? “Discovery” is the process by which parties exchange or acquire information about the issues in their case before trial. There are five main types of discovery. Each main type is discussed below: A. Depositions: “Depositions” are question-and-answer sessions held before trial. In them, one party to a lawsuit asks another person questions about the issues raised in the lawsuit. Rules 30 and 31 of the Federal Rules of Civil Procedure explain the procedures for taking a deposition. The person taking the deposition must pay the costs associated with it. If the person who will answer the questions is not a party to the lawsuit, Rule 45 explains how they can be made to appear for questioning. B. Interrogatories: “Interrogatories” are written questions served on another party to the lawsuit. These questions, unless subject to objections, must be answered under oath. Rule 33 of the Federal Rules of Civil Procedure states the rules for serving interrogatories. C. Requests for Production of Documents: In a “request for production of documents,” one person asks the other person to turn over documents about the issues in the lawsuit. The person asking for the documents must describe them in enough detail that the other person knows which documents are being requested. Rules 34(a) and (b) of the Federal Rules of Civil Procedure explain how to request documents from the other side in the lawsuit. If the person that you want documents from is not a party to the lawsuit, Rules 34(c) and 45 of the Federal Rules of Civil Procedure explain how to request their documents. D. Requests for Admission: In a “request for admission,” one side writes out statements that it wants the other side to admit are true. Rule 36 of the Federal Rules of Civil Procedure establishes the requirements for requests for admission. E. Physical or Mental Examination: When the mental or physical condition of a party is at issue in a lawsuit, Rule 35 of the Federal Rules of Civil Procedure allows the Court to order that person to submit to a physical or mental examination. The examination must be done by someone qualified, like a physician or psychiatrist. The party who requested the examination must pay for it. Pursuant to LR 26.2, requests for discovery and discovery responses should generally not be filed with the court, however, discovery related documents may be filed if necessary for the court to resolve a discovery dispute or a pretrial motion. (Return to Table of Contents) 8. If I Can’t Find a Lawyer, But I Want One, What Should I Do? Even with this handbook, representing yourself in Court may be very difficult. That is why the Court encourages everyone to find a lawyer if possible. There may be alternatives to representing yourself if you are without sufficient funds to hire a lawyer to assist you. There are attorneys and organizations, such as legal aid societies, that may be willing to represent you “pro bono,” that is, free of charge or based on some other arrangement. Information about Legal Aid of NorthWest Texas may be found on their website at http://www.lanwt.org/apply_howto.asp. Information about the Dallas Vo lu n t e e r At to rn e y Pro g r am may be found on the ir webs ite a t http://www.dallasbar.com/dvap/dvap_info.asp?InfoID=22. In addition, the State Bar of Texas’ website provides information on how a person may be able to obtain a pro bono attorney and provides links to pro bono providers. You may wish to visit the State Bar of Texas’ website. In a civil case, a party is not entitled by law to an attorney. A pro se litigant who has been found to be indigent (typically by the granting of an in forma pauperis application) and is unable to otherwise obtain counsel may ask by filing a written motion that the court request a lawyer to represent him or her. You should be aware, however, that there are many more litigants making that request than there are attorneys available to volunteer their services. Whether a lawyer is ultimately requested to represent a litigant depends on a number of factors. Sometimes the judges may appoint an attorney for any number of different reasons or purposes. The attorney may be recruited to represent you at trial, to prepare a motion or brief for you, or to represent you at a settlement conference. What role such an attorney performs in any particular case is entirely within the discretion of the court. (Return to Table of Contents) 9. Sanctions – What Are They? A sanction is a penalty or a punishment. Pro se litigants are subject to sanctions for some of the same reasons as licensed attorneys. When a party to a lawsuit presents a document to the court, Rule 11(b) of the Federal Rules of Civil Procedure requires that party to verify the accuracy and reasonableness of that document. If a submission to the court is false, improper, or frivolous, the party filing such a document may be liable for monetary or other sanctions. Sanctions imposed could consist of a monetary penalty or an order to pay the opponent’s attorney fees, which could be a substantial amount. The judge may also restrict a person from filing any future lawsuit until and unless certain conditions have been met. (Return to Table of Contents) 10. How Do I Appeal My Case? A. General A party dissatisfied with the outcome of a trial in a U.S. District Court may file a motion for new trial or a motion to alter or amend a judgment. The grounds a party must have to prevail on and the time limits for filing such motions are found in FED. R. CIV. P. 59. An appeal from a U.S. District Court shall be taken to the appropriate appellate court. Most appeals from a decision of this court proceed to the U.S. Court of Appeals for the Fifth Circuit in New Orleans. An appeal taken prior to entry of final judgment may be considered prematurely filed. To initiate an appeal, file a Notice of Appeal that identifies the court to which you are appealing, and the order that your are appealing, with the Clerk of the District Court (this office). FED. R. APP. P. 3(a) governs the time within which a notice of appeal must be filed. The Clerk’s Office has the responsibility to notify the appeals court and all parties that a notice of appeal has been filed. See the Federal Rules of Appellate Procedure and the Local Rules and Internal Operating Procedures of the Fifth Circuit Court of Appeals. We will accept a Notice of Appeal without prepayment of any required fee, but a fee may later be ordered, or your appeal dismissed for failure to pay the required appellate filing fee. If you pay the fee to this office by check, make it payable to “Clerk, U.S. District Court.”) If you file an appeal to the Fifth Circuit Court of Appeals, you will be required to complete the Transcript Order Form for Appeal, even if a trial or hearing was not held. This Court’s staff does not have access to any appellate court’s computer system. Questions about the status of your appeal before the Fifth Circuit Court of Appeals should be directed to their staff in New Orleans, Louisiana at (504) 310-7700. You may visit their website at www.ca5.uscourts.gov. (Return to Table of Contents) 11. Enforcement of a Judgment A. Bill of Costs A bill of costs is “a certified, itemized statement of the amount of costs owed by one litigant to another, prepared so that the prevailing party may recover the costs from the losing party.” Black’s Law Dictionary 173 (8th ed. 2004). If you prevail, file the Bill of Costs form no later than 14 days after the Clerk’s Office entered judgment on the docket. See LR 54.1 and ECF Administrative Procedures Manual for filing instructions. The Bill of Costs should reflect the costs allowable, as shown on the form. The Clerk’s Office does not monitor fees or costs incurred during a suit except the filing fees remitted to this Court. Unless the Court specifies another date, the Clerk’s Office will tax the costs 14 days after filing. If a Bill of Costs includes “other” costs, the Clerk will reduce those costs from the amount to be taxed, unless a judge has authorized the costs by order. If a party objects to a Bill of Costs, the Clerk’s Office will not tax costs until ordered to do so by the presiding judge. Please note that “taxing” consists only of stamping, signing, and sealing with the Court seal a filed Bill of Costs and placing it in the case record. The Clerk’s Office is not responsible for collecting or assisting in the collection of costs. The Clerk’s Office will mail a conformed copy to the party awarded costs upon that party’s request. B. Registration in Another District To certify a judgment that has been entered in the Northern District of Texas for registration in another district, a person must submit a written request to the District Clerk’s Office for preparation of a Certification of Judgment for Registration in Another District. The District Clerk’s Office charges a $9.00 fee for the certification, plus $0.50 per page for a copy of the judgment. The District Clerk’s Office will prepare the certificate and notify the requesting party that it is ready to be mailed or available to be picked up. The requesting party is responsible for ensuring that all requirements of the district of intended registration have been met. C. Registration in the Northern District To register a judgment entered in another federal court with the Northern District of Texas, a person should obtain a Certification of Judgment for Registration in Another District from the court that entered the original judgment, and then deliver the completed certification to the Clerk’s Office along with a $39.00 filing fee. The Clerk’s Office will take the judgment and open it as a miscellaneous case. D. Writ of Execution A writ of execution is “a court order directing a sheriff or other officer to enforce a judgment, usually by seizing and selling the judgment debtor’s property.” Black’s Law Dictionary 609 (8th ed. 2004). A party wishing to file a Writ of Execution must obtain the appropriate form online or from the District Clerk’s Office. The party must submit the original completed form and one copy to the District Clerk’s Office along with an original and one copy of the USM Form 285 (which is also available from the Marshals Service). If a USM Form 285 does not accompany the Writ of Execution, the District Clerk’s Office will return the Writ to the requesting party. The District Clerk’s Office does not assess a fee for filing a Writ of Execution. However, the Marshals Service does assess a fee for serving the Writ. Please contact the Marshals Service at (214) 767-0837 for more information. While the Writ of Execution form is available online, the form cannot be submitted by electronic means, nor will the District Clerk’s Office issue the Writ of Execution electronically at this time. The requesting party will be notified upon issuance of the Writ of Execution. If the requesting party wants a confirmed copy of the Writ, the party must submit a self-addressed, stamped envelope. E. Abstract of Judgment An abstract of judgment is “a copy or summary of a judgment that, when filed with the appropriate public office creates a lien on the judgment debtor’s non-exempt property.” Black’s Law Dictionary 10 (8th ed. 2004). If you are the prevailing party and you need an Abstract issued, use the appropriate form obtained from the Clerk’s Office. You may submit the form electronically using the Request for Clerk to Issue Document event. There is no fee for issuance. The Clerk’s Office will mail as many conformed copies to you as you request. (Return to Table of Contents) 12. List of Available Forms The forms listed below are among those available from the District Clerk’s Office or can be found online at http://www.txnd.uscourts.gov/forms/prose.html: A. Civil Complaint (General) and Civil Cover Sheet B. Certificate of Interested Persons C. Motion to Proceed In Forma Pauperis D. Summons in a Civil Case E. Motion for Appointment of Counsel and Declaration in Support F. Notice of Appeal Copies are included as attachments to printed copies of this manual. (Return to Table of Contents) 13. Glossary of Terms Used in Civil Litigation A————————————————————————————————————– Affidavit – A written statement of facts confirmed by the oath of the party making it, before a notary or officer having authority to administer oaths. Affirmed – In the practice of the court of appeals, it means that the court of appeals has upheld the judgment of the trial court in one or more respects. Answer – The formal written statement by a defendant responding to a civil complaint and setting forth the grounds for his or her defense. Appeal – A request made after a trial by a party that has lost on one or more issues that a higher court (appellate court) review the trial court’s decision to determine if it was correct. To make such a request is “to appeal” or “to take an appeal.” One who appeals is called the “appellant;” the other party is the “appellee.” Appellate – About appeals; an appellate court has the power to review the judgment of a lower court (trial court or tribunal). For example, the U.S. circuit courts of appeals review the decisions of the U.S. district courts. B————————————————————————————————————– Bankruptcy – A legal process by which persons or businesses that cannot pay their debts can seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, usually by paying a portion of each debt. Bankruptcy judges preside over these proceedings. Bench trial – Trial without a jury in which a judge decides which party prevails. Brief – A written statement submitted by a party in a case that explains why the court should decide the case, or particular issues in a case, in that party’s favor. C————————————————————————————————————– Chambers – A judge’s office, typically including work space for the judge’s law clerks and administrative assistant. Case law – The law as reflected in the written decisions of the courts. Chief Judge – The judge who has primary responsibility for the administration of a court; chief judges in the lower federal courts are determined by seniority, among other rules. Clerk of the Court – An officer appointed by the judges of the court to assist in managing the flow of cases through the court, maintain court records, handle financial matters, and provide other administrative support to the court. Common law – The legal system that originated in England and is now in use in the United States that relies on the articulation of legal principles in a historical succession of judicial decisions. Common law principles can be changed by legislation. Complaint – A written statement filed by the plaintiff that initiates a civil case, stating the wrongs allegedly committed by the defendant and requesting relief from the court. Contract – An agreement between two or more persons that creates an obligation to do or not to do a particular thing. Counsel – Legal advice; a term also used to refer to the lawyers in a case. Court – Government entity authorized to resolve legal disputes. Judges sometimes use “court” to refer to themselves in the third person, as in “the court has read the briefs.” Court reporter – A person who makes a word-for-word record of what is said in court, generally by using a stenographic machine, shorthand or audio recording, and then produces a transcript of the proceedings upon request. D————————————————————————————————————– Damages – Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries. Default judgment – A judgment rendered in favor of a party asserting a claim because of the defendant’s failure to answer or appear to contest the claim. Defendant – The person or organization against whom the plaintiff brings suit. Deposition – An oral statement made before an officer authorized by law to administer oaths. Such statements are often taken to examine potential witnesses, to obtain discovery, or to be used later in trial. See discovery. Discovery – The process by which lawyers learn about their opponent’s case in preparation for trial. Typical tools of discovery include depositions, interrogatories, requests for admissions, and requests for documents. All of these devices help the lawyer learn the relevant facts and collect and examine any relevant documents or other materials. Docket – A log maintained by the clerk containing the complete history of each case in the form of brief chronological entries summarizing the court proceedings, filings or other actions. E————————————————————————————————————– En banc – “In the bench” or “as a full bench.” Refers to court sessions with the entire membership of a court participating rather than the usual number. U.S. circuit courts of appeals usually sit in panels of three judges, but all the judges in the court may decide certain matters together. They are then said to be sitting “en banc” (occasionally spelled “in banc”). Equitable – Pertaining to civil suits in “equity” rather than in “law.” In English legal history, the courts of “law” could order the payment of damages and could afford no other remedy. See damages. A separate court of “equity” could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in “law” cases but not in “equity” cases. Evidence – Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case in favor of one side or the other. F————————————————————————————————————– Federal question jurisdiction – Jurisdiction given to federal courts in cases involving the interpretation and application of the U.S. Constitution, acts of Congress, and treaties. File – To place a paper in the official custody of the clerk of court to enter into the files or records of a case. G————————————————————————————————————– Garnishment – A court order to collect money or property. Guardian Ad Litem – A person, usually a parent, appointed by the court to represent a child. H————————————————————————————————————– Habeas corpus – A writ (court order) that is usually used to bring a prisoner before the court to determine the legality of his imprisonment. Someone imprisoned in state court proceedings can file a petition in federal court for a “writ of habeas corpus,” seeking to have the federal court review whether the state has violated his or her rights under the U.S. Constitution. Federal prisoners can file habeas petitions as well. A writ of habeas corpus may also be used to bring a person in custody before the court to give testimony or to be prosecuted. Hearsay – Statements by a witness who did not see or hear the incident in question but heard about it from someone else. Hearsay is usually not admissible as evidence in court. I————————————————————————————————————– Impeachment – The process of calling a witness’s testimony into doubt. For example, if the attorney can show that the witness may have fabricated portions of his testimony, the witness is said to be “impeached.” In forma pauperis – “In the manner of a pauper.” Permission given by the court to a person to file a case without prepayment of the required court fees because the person cannot pay them. Injunction – A court order prohibiting a defendant from performing a specific act, or compelling a defendant to perform a specific act. Interrogatories – Written questions sent by one party in a lawsuit to an opposing party as part of pretrial discovery in civil cases. The party receiving the interrogatories is required to answer them in writing under oath. Issue – 1. The disputed point between parties in a lawsuit; 2. To send out officially, as in a court issuing an order. J————————————————————————————————————– Judge – An official of the judicial branch with authority to decide lawsuits brought before courts. Used generically, the term judge may also refer to all judicial officers, including Supreme Court justices. Judgment – The official decision of a court finally resolving the dispute between the parties to the lawsuit. Jurisdiction – 1. The legal authority of a court to hear and decide a case; 2. The geographic area over which the court has authority to decide cases. Jury – The group of persons selected to hear the evidence in a trial and render a verdict on matters of fact. See also grand jury. Jury instructions – A judge’s directions to the jury before it begins deliberations regarding the factual questions it must answer and the legal rules that it must apply. Jurisprudence – The study of law and the structure of the legal system. L————————————————————————————————————– Lawsuit – A legal action started by a plaintiff against a defendant based on a complaint that the defendant failed to perform a legal duty which resulted in harm to the plaintiff. Litigation – A case, controversy, or lawsuit. Participants (plaintiffs and defendants) in lawsuits are called litigants. M————————————————————————————————————- Magistrate Judge – A judicial officer of a district court who conducts many pretrial civil matters to move a case forward, and decides civil cases with the consent of the parties. Mistrial – An invalid trial, caused by fundamental error. When a mistrial is declared, the trial must start again with the selection of a new jury. Motion – A request by a litigant to a judge for a decision on an issue relating to the case. O————————————————————————————————————– Opinion – A judge’s written explanation of the decision of the court. Oral argument – An opportunity for lawyers to summarize their position before the court and also to answer the judges’ questions. P————————————————————————————————————– Panel – 1. In appellate cases, a group of judges (usually three) assigned to decide the case; 2. In the jury selection process, the group of potential jurors; 3. The list of attorneys who are both available and qualified to serve as court-appointed counsel for criminal defendants who cannot afford their own counsel. Party – One of the litigants. At the trial level, the parties are typically referred to as the plaintiff and defendant. On appeal, they are known as the appellant and appellee, or, in some cases involving administrative agencies, as the petitioner and respondent. Petit jury (or trial jury) – A group of citizens who hear the evidence presented by both sides at trial and determine the facts in dispute. Federal civil juries consist of at least six persons. See also Jury. Plaintiff – The person who files the complaint and who asserts claims identifying legal injury to them in a civil lawsuit. Pleadings – Written statements filed with the court which describe a party’s legal or factual assertions about the case. Precedent – A court decision in an earlier case with facts and legal issues similar to a dispute currently before a court. Judges will generally “follow precedent”- meaning that they use the principles established in earlier cases to decide new cases that have similar facts and raise similar legal issues. A judge will disregard precedent if a party can show that the earlier case was wrongly decided, or that it differed in some significant way from the current case. Pretrial conference – A meeting of the judge and lawyers to plan the trial, to discuss which matters should be presented to the jury, to review proposed evidence and witnesses, and to set a trial schedule. Typically, the judge and the parties also discuss the possibility of settlement of the case. Procedure – The rules for conducting a lawsuit; there are local rules, rules of civil procedure, criminal procedure, evidence, bankruptcy, and appellate procedure. Pro per – A slang expression sometimes used to refer to a pro se litigant. It is a corruption of the Latin phrase “in propria persona.” Pro se – A Latin term meaning “on one’s own behalf”; in courts, it refers to persons who present their own cases without lawyers. R————————————————————————————————————– Record – A written account of the proceedings in a case, including all pleadings, evidence, and exhibits submitted in the course of the case. Remand – The act of an appellate court sending a case to a lower court for further proceedings. Reverse – The act of an appellate court setting aside the decision of a trial court. A reversal is often accompanied by a remand to the lower court for further proceedings. S————————————————————————————————————– Service of process – The delivery of writs or summonses to the appropriate party. Settlement – Parties to a lawsuit resolve their dispute without having a trial. Settlements often involve the payment of compensation by one party in at least partial satisfaction of the other party’s claims, but usually do not include the admission of fault. Statute – A law passed by a legislature. Statute of limitations – A law that sets the deadline by which parties must file suit to enforce their rights. For example, if a state has a five year statute of limitations for breaches of contract, and John breached a contract with Susan on January 1, 1995, Susan must file her lawsuit by January 1, 2000. If the deadline passes, the “statute of limitations has run” and the party may be prohibited from bringing a lawsuit; i.e. the claim is “time-barred.” Sometimes a party’s attempt to assert his or her rights will “toll” the statute of limitations, giving the party additional time to file suit. Subpoena – A command, issued under authority of a court or other authorized government entity, to a witness to appear and give testimony. Subpoena duces tecum – A command to a witness to appear and produce documents. Summary judgment – A decision made on the basis of statements and evidence presented for the record without a trial. It is used when it is not necessary to resolve any factual disputes in the case as to all or some of the claims. T————————————————————————————————————– Temporary restraining order – Prohibits a person from taking an action that is likely to cause irreparable harm. This differs from an injunction in that it may be granted immediately, without notice to the opposing party, and without a hearing. It is intended to last only until a hearing can be held. Sometimes referred to as a “T.R.O.” Testimony – Evidence presented orally by witnesses during trials or before grand juries. Toll – See Statute of Limitations. Tort – A civil wrong or breach of a duty to another person. The “victim” of a tort may be entitled to sue for the harm suffered. Victims of crimes may also sue in tort for the wrongs done to them. Most tort cases are handled in state court, except when the tort occurs on federal property (e.g., a military base), when the government is the defendant, or when there is diversity of citizenship between the parties. Transcript – A written, word-for-word record of what was said, either in a proceeding such as a trial, or during some other formal conversation, such as a hearing or oral deposition. Trustee – In a bankruptcy case, a person appointed to represent the interests of the bankruptcy estate and the unsecured creditors. The trustee’s responsibilities may include liquidating the property of the estate, making distributions to creditors, and bringing actions against creditors or the debtor to recover property of the bankruptcy estate. U————————————————————————————————————– Uphold – The appellate court agrees with the lower court decision and allows it to stand. See Affirmed. U.S. Attorney – A lawyer appointed by the President in each judicial district to prosecute and defend cases for the federal government. The U.S. Attorney employs a staff of Assistant U.S. Attorneys who appear as the government’s attorneys in individual cases. V————————————————————————————————————– Venue – The geographical location in which a case is tried. Verdict – The decision of a trial jury or a judge that determines the guilt or innocence of a criminal defendant, or that determines the final outcome of a civil case. Voir dire – The process by which judges and lawyers select a trial jury from among those eligible to serve, by questioning them to make certain that they would fairly decide the case. “Voir dire” is a phrase meaning “to speak the truth.” W————————————————————————————————————- Witness – A person called upon by either side in a lawsuit to give testimony before the court or jury. Writ – A formal written command or order, issued by the court, requiring the performance of a specific act. Writ of certiorari – An order issued by the U.S. Supreme Court directing the lower court to transmit records for a case which it will hear on appeal.
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Since Oklahoma is a close neighbor, this Address makes the Texas Tidbits category:
State of the State Governor Robert L. Williams January 15, 1915 TO THE SENATE AND HOUSE OF REPRESENTATIVES OF THE STATE OF OKLAHOMA: At the beginning of the present quadrennium in the government of this State, I desire to submit for the consideration of Your Honorable Bodies, as follows: CAPITOL COMMISSION—WHAT IT SHOULD ACCOMPLISH AND DO. At the extraordinary session of the Legislature of 1913, an act was passed providing for the construction of a State Capitol. By this act, a State Capitol Commission was created and the Commissioners selected and appointed by the Legislature, and such selection and appointment approved in the bill; which bill was also approved by the Governor. Said Commissioners were to be commissioned by Concurrent Resolution of the Senate and House of Representatives, which was to be signed by the President pro tempore of the Senate and Speaker of the House of Representatives. The appointment of the members of the Commission was to “be construed to be the act of the Legislature, consisting of the Senate and the House of Representatives, and the tenure of office of the Commissioners elected and appointed” as provided therein, was to begin with the approval of said Act, and the term to end “with the completion of the construction of the Capitol building proper.” Said Commission is required to maintain its office and hold its sessions at the seat of government. “Each Commissioner shall receive a salary of three thousand ($3,000.00) dollars per annum, payable monthly, and shall be allowed reimbursement for all railroad fare actually incurred and all hotel and traveling expenses actually expended in carrying out the purpose of this Act when away from the seat of government; said items of salary and expense shall be audited, approved and allowed by the Commission against the appropriation for the construction of the State Capitol provided herein.” The State Capitol Commission, as soon as practicable after its organization, is required to proceed to select a plan for a State Capitol, provided the reasonable cost of said plan of said Capitol building proper shall not exceed one and one-half million dollars. After plans for this building have been adopted by said Commission, contract or contracts are to be made in writing for the construction of the entire building by a contractor, individual or corporate, who may undertake the whole work, or the Commission may divide the work into appropriate classes and make separate contracts as to either of them as it may deem most advisable and for the best interest of the State, or may adopt and carry out other plans for the building of said State Capitol. All contracts for the construction of said building or for designated classes of the work thereof shall be let to the lowest and best bidder therefore [sic]; “nor shall any contract or contracts take effect until all of said work for constructing said State Capitol shall have been contracted for.” The Commission is required to appoint a practical builder or other specially qualified person to act as superintendent of the construction of said Capitol Building. It is made his duty to see that all contracts made with the Commission are faithfully performed; that all material furnished and work done shall be such as is required by law or the contract thereof; that all duties imposed upon the architects are faithfully 2 performed by him and his subordinates, and that no provisions of the contract are violated. Said superintendent is to receive as compensation such sum as the Commission shall deem reasonable, not exceeding eight ($8.00) dollars per day for each and every day, or part of a day, he is actually engaged in the performance of his duties. Said Act also apropriates [sic] “out of any money in the State Treasury, not otherwise appropriated, for the purpose of constructing a State Capitol, as provided in this Act, the sum of two hundred and fifty thousand ($250,000.00) dollars, said sum of two hundred and fifty thousand ($250,000.00) dollars to be available for use by the Capitol Commission during the fiscal year ending June 30, 1915.” Also, said Act further appropriates the sum of four hundred and ninety-seven thousand, two hundred and seventy-four and 72-100 ($497,274.72) dollars from another specified fund, making a total appropriation of seven hundred and forty-seven thousand, two hundred and seventyfour and 72-100 ($747,274.72) dollars, that is made by the Legislature for the erection of this Capitol building. Said Act provides that whilst the Legislature is not in session, said Commissioners may be removed by the joint action of the President pro tempore of the Senate and Speaker of the House of Representatives. It also provides for the employment of a secretary to said Commission at a salary of two thousand ($2,000.00) dollars. Section 7 of said Act provides that “All bills, claims and demands for labor performed, work done or material furnished, shall be made out in duplicate by the person or persons, or corporation or company, presenting the same to the Commission for allowance and be passed on by the Commission at a session thereof.” The provision is made for the payment of same by warrants drawn on the State Auditor. The Act further provides that no contract for the building of the Capitol or any part thereof shall be valid until the entire building has been contracted for. Such contract cannot be legally entered into until an appropriation is available to meet the entire cost of the building. This has been settled by the Supreme Court of this State in Campbell et al. v. State ex rel. Brett, 23 Okla. 109, 99 Pac. 778. Section 55 of Article 5 of the Constitution provides that: “No money shall ever be paid out of the treasury of this State, nor any of its funds, nor any of the funds under its management, except in pursuance of an appropriation by law, nor unless such payments be made within two and one-half years after the passage of such appropriation act.” On account of said provision, it may become necessary for some part of the $747,274.72 to be re-appropriated. Section 12, of Article 5 of the Constitution, requires every bill passed by the Legislature making appropriation of money to be presented to the Governor for his approval or his disapproval. I call your attention not only to the legal obstacles to the letting of the contract for the completion of the Capitol building under the present bill, but, also, to the responsibility of the Governor under the terms of the Constitution in the raising of funds for its completion. Under the terms of this Act, the Capitol Commission has no fixed tenure, but is to hold office until the Capitol building proper is completed. Necessarily, the time of completion depends, in a measure, upon the will, desire and inclination of the Commission. As a rule, when provisions are made for the payment out of a fund of salaries or expenses, limitations or restriction under the terms of the Act are imposed for 3 the protection of the taxpayers. Hence, my duty to point these matters out, with suggestions as to corrections. A reasonably speedy construction and completion of the State Capitol building is essential. At the present time, the State officers are housed in different parts of the city, and the Legislature, when in session, convenes at still a different place. This has a tendency to prevent efficiency and economy. If all the different departments of government, with their various employes [sic], were quartered in one building, or in buildings located at the same place, by way of closer administrative organization, and the saving of time, greater efficiency and economy would result. In addition, a rental for these various quarters, approximating an amount equal to the interest on the cost of the State Capitol, is now borne by the State. The advisability of the State owning at the earliest reasonable date, its own State House, cannot be seriously questioned. This must be done, however, on practical lines, with a special view of protecting the taxpayers. Our chief duty is to them. The $747,274.72 already provided and appropriated, has been taken from them. The additional necessary funds for its completion must be taken from the taxpayers of this State. The expenditure of this money must be made with every safeguard around it for the protection of these burdenbearers. Accordingly, I recommend: That the bill passed by the extraordinary session of the Legislature in 1913, providing for the construction of the State Capitol, be amended so as to provide for the appointment of a Citizens’ Committee, to serve without pay, and to consist of not less than five, nor more than seven members, a majority of whom may not reside in any one county. The duty of this Committee will be to make an examination as to the plans drawn and adopted for said Capitol building, and at stated times to examine the work on said building as it is constructed; and report the result of its investigation to the Governor, a copy to be filed with the Secretary of State, and also, with each House of the Legislature, when in session. This Citizens’ Committee will be both a shield and a sword; a shield to protect the officers of the State in the construction of this building, when they are right, and a sword to prevent wrong or imposition being done. The question as to the power of the Legislature to delegate to the President pro tempore of the Senate and the Speaker of the House of Representatives the authority to remove the Capitol Commissioners is not clear. As to whether or not such power may be delegated to such officers may be well doubted. If the occasion shall arise when said Commissioners or any one of them should be removed, and the Legislature was not in session, grave complications might then arise. If such power could not be thus delegated; not to say anything about the unobservance of the provisions for the different co-ordinate branches of the State Government being a check one upon the other. I further recommend that the original bill be so amended as to place the power to remove said Commissioners either with the Governor, or some other board of elective Executive State officers; and further, that the bill be so amended as to provide that before the contract which may be let by the State Capitol Commission becomes effective and binding on the State, the same must be approved by the Governor; and that if the Legislature is at that time in session, the same must also be submitted to the Legislature, when, if the Legislature should disapprove the contract, though the same had already been entered into by the Capitol Commissioners, and approved by the Governor, it should still be of no effect. 4 When the contract for the State Capitol shall have been let by the State Capitol Commission, then its existence as such should cease. The question of the contractors’ complying with the contract must necessarily be determined by experts and provision is made in the bill for the employing of an expert for that purpose. The general duty of the Commission will be to employ this expert and draw their salaries and maintain an office in accordance with the station of their position and have a secretary and other employes [sic]. This duty can be exercised by the State Board of Affairs, or a Commission of exofficio elective State officers just as effectively and without any cost to the State. I therefore recommend that provision be made by law that after the contract is let and approved, that within fifteen days the term of the office of the Capitol Commission shall cease, and that the duties of that office shall then be exercised by a commission, to be composed of certain elective State officers, to be named by the Legislature, or by the State Board of Affairs. BOARD OF PRISON CONTROL—TO BE ABOLISHED. The Legislature of 1913 passed an Act creating a Board of Prison Control for the State Penitentiary at McAlester and the Oklahoma State Reformatory at Granite. I respectfully recommend that by an Act of the Legislature, these duties be imposed upon the Board of Affairs, with the exception of that duty imposed on the Board of Prison Control as to the examining and investigating of applications for pardons, paroles, or reprieves and commutations, together with applications to remit fines and penalties. Provision should be made for this investigation to be made by a clerk, to be known as Pardon Clerk to the Governor; provision being made, also, for stenographic help for the Pardon Clerk. This contemplates that a complete record shall be made of the hearings. I want to see the pardoning power exercised under the same care that judgments and decrees of courts are entered, with a complete record made of all the evidence and everything that is offered, with a view of securing executive clemency. This should be reduced to writing and made of record, and the Pardon Clerk make his findings of fact thereon, similar to a master in chancery or referee, and furnish the applicant with such findings before same is presented to the Governor for his determination as to whether clemency should be exercised. Safeguards must be thrown around these applications for executive clemency, so that all shall stand on the same level and footing, and the Chief Executive to be protected from imposition. The Board of Control, if they are to make careful investigations and get the facts as contemplated in this recommendation, would consume practically the entire four months time in which the present statute permits the old board to serve, and, therefore, no time could reasonably be given to the constructive administration of the prisons. The report of this Prison Board of Control on pardons, reprieves and commutations can, under our Constitution, be only advisory to the Governor. Under our constitutional provision it cannot operate to be a limitation upon his power. At most, it is a matter of procedure which may be essential to the acquiring of jurisdiction of the matter by the Governor. The same essential procedure may be prescribed in the way of requiring the filing of applications and giving notice of hearings before the Pardon Clerk. In prescribing such procedure, exceptions in the cases of reprieves should be made. I suggest, further, that the Governor be required to state in writing and make of official record his reasons for granting pardons, reprieves and communications. By the abolishing of the Prison Board 5 and placing this work on the Board of Affairs, not only will efficiency, but, also, economy operate; for if this board is to be retained and its work operate efficiently to the State, it would be necessary to increase their compensation, and, also, to give them more help and contingent expenses. In selecting the members of the Board of Affairs, I had this in view. One member has had special experience in the line of handling prisoners and is especially fitted in that respect. CONVICTS AND THEIR EMPLOYMENT. In the two state prisons, to-wit: The one at McAlester and the other at Granite, about fifteen hundred prisoners are confined. Whilst it is the duty of the State in restraining them from society to endeavor by humane treatment to bring about a reformation, yet in doing this, their labor should be utilized in such a way as to cause this effort to be made by the State at as little expense as reasonably possible upon the taxpaying citizenship. I accordingly recommend for your consideration the employment of said inmates in the penitentiary (1) upon the highways of the State and (2) for working them within the walls in the manufacture of such things as are to be used by the State and its institutions; (3) upon a State farm; and (4) where possible on irrigation projects. GOOD ROADS. It is not necessary to go into any argument as to the necessity for good roads. That is self-evident. Article 16 of the Constitution directs the Legislature to establish a Department of Highways with power to create improvement districts and to provide for building and maintaining public roads and the utilization of convicts thereon. Under this provision, local road districts may be formed upon the betterment plan. In addition, roads may be built by townships, counties and State. I recommend that legislation may be had so that all these systems may be combined, when desirable. Further, that provision be made for the building of roads exclusively on the betterment plan by the improvement districts, and also by townships or counties, or the State, separately, so as to leave the proposition in a way to be worked out reasonably by these different agencies, separately or combined. HIGHWAY COMMISSIONER. The office of State Highway Commissioner should be continued with an adequate salary; the business of the Highway Department being placed under the supervision and regulation of the Board of Affairs. It is my desire that we shall build roads and that the Highway Commissioner shall be a constructive working agent in bringing this about. The people of this State must have good roads. Let’s devote our energies to that end. I feel sure that we can accomplish this greatly desired result. TAXES—EXTENSION AND PENALTIES. It is essential that too much technical observances should not be required in order to cause taxes to become due and bear penalties. Therefore, the statute should be amended so as to not require notice to the taxpayer as a condition precedent to his taxes becoming due, in such a way as to bear penalties. However, under the depressed conditions that exist in many parts of the State, occasioned by the general European war, many people are not now able to pay their taxes. Therefore, I recommend that a statute be passed, providing for a reasonable extension of all taxes, the same to bear interest during such extension at the rate of six per cent per annum, and that the State Board of Equalization may make still further 6 extensions at any time as to any county or counties, or entire State, under the same terms. Otherwise, the penalty provided by law to obtain. PRODUCTION OF GROSS PROCEEDS TAX. As to the tax on gas, petroleum or other crude oil when segregated from the common source of supply beneath the surface and for taxing the same as property, each producer should be required to pay a mining production tax of two per cent upon the gross value of such production, at the point where the same is mined, according to the market value thereof. Three-fourths of all sums derived from such tax should be paid into the general State fund, and the other fourth be applied to the maintenance of the common schools of the county where the tax is collected. The larger portion should go to the State, on account of the great agencies of the State, like the Corporation Commission and inspections that have to do so much with said business, being borne at the general State expense. FARM PRODUCTS NOT TO BE TAXED. The farmer and producer should be encouraged to so market his crops as to get reasonable prices therefore [sic]. If he is forced to rush the same upon the market, such results may not be obtained. If the same are taxable, he would be required to sell the same prior to the beginning of the tax year, or bear the burden of the tax upon the raw product. This does not appear to me to be in accordance with the best interest of the State. Therefore, I recommend the passage of an Act, so classifying farm products as not to be subject to taxation. RURAL CREDITS. We should cause the people to get money upon approved economical lines at as low a rate of interest as reasonably possible. I accordingly recommend that real estate loans be taken as security for State and county deposits; that only real estate mortgages where the entire charges of interest, commission and everything, does not exceed eight per cent, shall be taken for such security. I further recommend the consideration and passage of an Act providing for the formation and incorporation of rural credit unions, or co-operative associations for the purpose of promoting thrift among their members, and to enable the members thereof, when in need, to obtain for productive purposes moderate loans of money for short periods and at reasonable rates of interest. I further recommend for your consideration the formation of a state loan bank, so as to establish a state-wide rural credit system. I urge that this be given careful consideration and that we travel along safe economic lines, but that we do it patriotically and wisely, so as to effectively bring relief to the people. A MARKETING SYSTEM. I further recommend for your careful consideration the devising of ways and means of creating a marketing system through the agency of the Board of Agriculture. A STATE TAX COMMISSION. The State Board of Equalization should be abolished and a State Tax Commission created in its stead. To that end I recommend that Section 21, of Article 10, of the Constitution, be so amended and that said Tax Commission be authorized to exercise the powers of a State Board of Equalization, to adjust and equalize the value of real and 7 personal property and perform such other duties as may be prescribed by law, and exercise not only administrative but judicial and legislative powers in the settlement of all controversies over taxation, and to have exclusive jurisdiction over same, except that its orders as to the equalization of property values and the settlement of tax controversies may be reviewed by writ of error to the Supreme Court of the State. In addition it should also be made the duty of the said Tax Commission to assess all railroad and public service corporation property, to be reviewed by appeal by the Supreme Court of the State, and biennially and at such other times as may be requested by the Governor report and recommend such legislation as is necessary for revenues. It is contemplated that these Commissioners shall be experts as to all matters of taxation and in the course of its duty to become acquainted in detail with the taxable property of this State so that no injustice may be done any taxpayer in the assessment or equalization of property. A SAFEGUARD AGAINST DEFICIENCIES. I recommend the repeal of the statute permitting municipalities to issue funding bonds to cover deficiencies on account of the failure of revenue. This will have a salutary influence toward restraining city officials within the revenue provided and cause parties to be cautious in dealing with municipalities. This is a necessary safeguard in order to protect taxpayers. RURAL LANDS TO BE ASSESSED BIENNIALLY. I recommend that land located outside of towns and cities shall be assessed only once in every two years so as to reduce the expenses of assessment. REVENUES TO BE DERIVED FROM DEPARTMENTS. Provision should be made for the fixing and charging a fee by the Secretary of the Corporation Commission for transcripts in appeals from its orders, and copies furnished private parties; also fees to be collected by the Commission on all refunds made through its intervention. These fees should be converted at stated times into the State Treasury. Provision should, also, be made for charging fees for copies of all records furnished by the various Executive Departments to parties desiring the same and for the converting of these fees at stated times into the State Treasury. By this means revenues may be acquired without any burden to the taxpayers, and these departments will, in a measure, at least, be self-sustaining. Every state agency with a few exceptions should be made at least partially selfsustaining. The courts which are a necessary agency for the peaceable settlement of civil controversies, and essential for good government, should not be supported entirely by the taxpayers. The litigants in civil cases should at least bear a part of these burdens. There is no reason why the peaceable man, who settles his matters without legal controversies, should be taxed to furnish this legal luxury entirely to the litigious citizen. The record shows that it costs the state on an average of about fifty dollars for every civil case appealed to the Supreme Court. I accordingly recommend that a docket fee be taxed in the sum of twenty-five dollars as a part of the costs in every such case to follow the result of the case, provision being made by the statute for the plaintiff in error securing this cost or depositing same and to recover judgment therefore if prevailing in the appeal. Provision should be made, also, for the charging of a jury fee, so as to place a part of the burdens upon the litigants in the trial courts and not cause the same to be borne entirely by the taxpayers. 8 THE CLERK OF THE SUPREME COURT. The assistants now provided by law for the office of the Clerk of the Supreme Court should be reduced. Two assistants at $1,800.00 per year, and one assistant at $1,200.00 per year, and another at $900.00 per year will be entirely adequate, with the Clerk giving his personal attention to the duties of his office, as required by Section 11, Article 2, of the Constitution. The State, for clerical help, should not pay more for salaries than private concerns. The same constructive business rule should control in departments of State as in private concerns. In private concerns higher salaries are paid for heads of departments, the balance of the work being done by clerks. Good clerks are available now at $100. per month. I feel that I am going the limit when I agree in this message to approve appropriations for two clerks at $1,800.00 per year; for some strict business concerns, under the same circumstances, would consider that only one chief deputy would be necessary. In determining the prices for help we should consider what salaries these employes [sic] would likely draw in private employment. That should be the controlling test. I have no disposition to be harsh on government employes [sic]. I only insist that the employes [sic] of the State, for the same kind of work, are not entitled to any more compensation than that usually received in private employment. I feel that it is our duty to give the same careful consideration to the interests of the taxpayers that we would to our own private interests, if these employes [sic] were to be paid by us. STENOGRAPHERS OF THE JUSTICES OF THE SUPREME COURT. The stenographers to the Justices of the Supreme Court should be required, as a part of their official duties, to make copies of all opinions, where necessary, for the Clerk of the Supreme Court. This to be done under rules and regulations to be prescribed by the Justices of the Supreme Court. The statute should provide that it shall be made the duty of the Justices of the Supreme Court to make orders and provide rules and regulations for the stenographers to make copies of all opinions, as requested by said Clerk. By this means an actual saving of between $2,500.00 and $3,000.00 per year can be made to the State. I recommend that it be made a misdemeanor for the Clerk or any employe [sic] to be interested directly or indirectly in the furnishing of copies of opinions or records from any department of state whatever where provision is made by law for the state to receive compensation for such work if it were done by an officer or employe [sic] in such capacity. APPELLATE COURTS. The dockets of the Appellate Courts, especially as to civil cases, are considerably congested. The Supreme Court being over two years behind. This is not occasioned by the fault of the members of the Court, but is brought about by several causes, over which the court has no control. (1) No limitation now exists as to appeals; (2) the cost of appeals is now borne almost entirely by the taxpayers; (3) written opinions are required by the Constitution in all cases; (4) so many new questions arising for determination; (5) in that the congested condition of the docket encourages appeals for delay. TRIAL COURTS. In trial courts, the speedy final determination of cases is essential. For proper results to be had, not only must there be expedition in the trial, but also, in the Appellate Court. In all cases, except as to questions of unliquidated damages, the trial should be 9 had in such a way and the record made so that upon appeal, if the proper judgment was not rendered in the trial court, the Appellate Court may render the judgment that should have been rendered without remanding it for a new trial. This is essential for the speedy determination of litigation and saving expense, not only to the litigant, but also to the taxpayer. I accordingly recommend that amendments to the Constitution be submitted so that (1) appeals in civil cases to the Appellate Court may be limited by legislative enactment; (2) that the Supreme Court may sit in divisions under such rules and regulations as may be prescribed by law, the Criminal Court of Appeals to constitute the division thereof as to appeals in criminal cases; the other divisions to consider appeals in civil cases; a decision by any one division to be the judgment of the court; provided that under certain rules and regulations same may be reviewed by the court en banc; and further, to provide the manner in which the judges may be nominated and elected; (3) that written opinions may be dispensed with in the Appellate Court under rules and regulations to be prescribed by the Legislature; (4) that the Appellate Courts in civil cases, except where there is an issue as to unliquidated damages, may without reversing and remanding, render the judgment that ought to have been rendered in the trial court, and as to appeals in criminal cases, may modify the judgment of the lower court without reversing and remanding the same; (5) provide for the abolishing of the county court and the placing of all jurisdiction, except that of the justice of the peace, in the District Court. Demurrers and answers should be required to be filed at the same time so as to expedite the trials. As to whether civil cases should be tried to a jury, rules and regulations should be made, so that a jury and a non-jury docket may be made up and thus save the expense of a jury during the period that the non-jury docket is being tried. LIBRARIAN AND MARSHAL TO BE CONSOLIDATED. The office of Librarian and Marshal of the Supreme Court should be consolidated. At present, each of these officers receive a salary of $1,500.00 per year. The Librarian also has an assistant and a reference clerk, each of whom receive $1,000.00 per year. By the consolidation of the office of Librarian and Marshal, at a salary of $1,500.00 per year, the Librarian becoming ex-officio Marshal of the Supreme Court, the same results may be had and this saving made to the taxpayers. BOARDS FOR THE HOSPITAL FOR THE INSANE TO BE ABOLISHED. Sections 7021, 7022, 7023 and 7024, Revised Laws of Oklahoma, Annotated, place the management of the Oklahoma Hospital for the Insane, located at Supply, Oklahoma, under the control of a Board of Trustees composed of the Governor and two other persons and provides for the holding of regular sessions at the Capitol on the first Monday in January, April, July and October of each year, and also for special sessions. The affairs of the hospital generally are placed under the control of this board. The expense of this local board can be reasonably dispensed with and its duties imposed upon the Board of Affairs. I recommend that this board be abolished and that the Board of Affairs be charged with these duties with the exception that the Superintendent, Steward and Physician be appointed by the Governor direct, subject to be removed at any time within the discretion of the Governor. Section 2032 of the Revised Laws of Oklahoma provides that the said Board of Trustees shall appoint three competent practicing physicians, residents of this State, to constitute a Board of Examiners of said hospital. I recommend that the Governor of the State be authorized to appoint these physicians in 10 lieu of said board, and that the Board of Examiners transmit a copy of their report in duplicate, one to the Governor and the other to the Board of Affairs. Sections 7040, 7045 and 7046, Revised Laws of Oklahoma, 1910, Annotated, creates a board for the control and management of the East Oklahoma Hospital for the Insane at Vinita, the board to consist of three persons to be appointed by the Governor. I recommend that this board be abolished and all the duties of that board be vested in the Board of Affairs, except that the Superintendent, Steward be appointed by the Governor. By this means the expense of two boards will be dispensed with, and the business management of these institutions placed in the hands of men appointed to transact business affairs of this State. I desire to see a profitable dairy and poultry farm in connection with these institutions, and everything done reasonably possible toward making these institutions self-sustaining. THE NUMBER OF JURORS TO BE REDUCED. Under Section 19, of Article 2, of the Constitution, twelve petit jurors are required in courts of record other than county courts, and six petit jurors in county courts, and a grand jury is to be composed of twelve jurors. As provision is contemplated for the conferring of the jurisdiction of the county court upon the district court, I recommend that provision be submitted to amend Sections 18 and 19, of Article 2, of the Constitution, so that eight jurors shall constitute all grand and petit juries in courts of record, and provide that juries may be empaneled in the justice court under rules and regulations prescribed by law but without cost to the state, county or municipality, and further provide that provision may be made by the Legislature for jury fees to be required to be paid by litigants. A SMALLER LEGISLATURE AND SHORTER SESSIONS. As to the Legislature, I recommend the submission of a Constitutional amendment, providing (1) that the Senate shall consist of twenty-four members and the House of seventy-five members, providing also therein that by legislative enactment, the membership in either or both bodies may be reduced, and (2) that a regular session shall not exceed fifty days, and an extraordinary session not to exceed thirty days. SPECIAL CHARTERS FOR MUNICIPALITIES AND COUNTIES—POLITICS TO BE ELIMINATED. As local government under the exercise of the police power is made to respond to the modern needs and conditions of the people, its administration becomes more complex. Fixed and general rules for the administration of counties or municipalities generally are not adequate for such conditions. Hence, the necessity for the framing of special charters by local municipalities. In the evolvment of such government, the electors in their local governmental capacity should be given great latitude. This should be done to the extent of permitting elimination of nominations by political parties, so that such government may be reduced to strictly a business proposition. Political parties exist for the purpose of promoting principles and measures for good government. What is essential for local government in one community might not be proper in another. So, a political party as a party in a state may have no particular mission as to such local matters. One of the cardinal principles of the Democratic party is local self-government. If the electors of the municipality desire to provide for the selection of their officials without party nominations so that efficiency may be promoted without party machine impediments, such sub-divisions should have that power. Oft’ times local officers are 11 indifferent as to the success of the party in the State, where great political principles are at issue, being absorbed in personal local matters. But if these local officers are inefficient and do not meet the required duty, the party in the State has to bear the odium of such deficiencies. I accordingly recommend the submission of an amendment to Section 5, Article 3, of the Constitution of this State, so as to permit municipalities in framing such charters to dispense with political nominations and also to authorize counties to adopt special charters for their county governments, and also therein to provide for the elimination of party nominations. SAFEGUARD AGAINST INPROVIDENT INDEBTEDNESS BY MUNICIPALITIES. While credit has brought riches to some it has impoverished many. Credit is always exercised by the capable business man with great care and with such reasonable sinking fund or equity under reasonable safeguards as to meet emergencies. The business man who uses his credit and weathers all storms is indeed well ballasted. Credit when exercised by municipalities or other political subdivisions should be exercised with the same care. Safeguards and limitations against the making of such obligations is essential. The future should never be mortgaged except when an adequate necessity exists and then under reasonable limitations. One of the dangers of any community is in improving too fast, and incurring too many obligations. We should advance and progress wisely, carefully and surely, so that there should be no reaction. We feel now the burden of the hand of the tax gatherer, but if we examine into details we find that a great part of these taxes are gathered every year to provide a sinking fund for municipal indebtedness. Oft’ times this indebtedness has been created under the feverish spirit for development. Section 26, of Article 10, of the Constitution permits municipalities to become indebted generally to an amount in the aggregate not exceeding five per cent of the valuation of the taxable property therein to be ascertained from the last assessment for State and county purposes previous to the incurring of such indebtedness, provided that three-fifths of the voters thereof must concur. Section 27, of the same Article, in addition permits municipalities to become indebted without limit for the purpose of purchasing or constructing public utilities or for repairing the same, to be owned exclusively by such municipalities, provided that such be authorized by a majority of the properly qualified taxpaying voters of such city. Section 27 extends too much credit to a municipality and makes it too easy for it to become bankrupt. Additional safeguards should be adopted so as to insure safe and sane development and protection to the taxpayers. I accordingly recommend that an amendment be submitted imposing the same restrictions in Section 27 both as to the amount and as to the number of voters to assent as are contained in Section 26. By this means then a municipality could not become indebted for all purposes to an amount in the aggregate not exceeding ten per cent of the valuation of the taxable property therein to be ascertained from the last assessment for State and county purposes previous to the incurring of such indebtedness. Such a measure would not be retroactive. STATE AND FEDERAL MACHINES TO BE PREVENTED. It is essential that we should have the agencies by which the people may evidence their judgment without political machine interference. This should extend not only to the State, but also its sub-divisions. For that reason and the further fact that our party 12 platform so declared, I recommend that amendments to the Constitution be submitted as follows: 1. No official whilst holding a State office shall be a candidate for any State, county or municipal office, except to succeed himself, when eligible. 2. No Federal office-holder or member of Congress or United States Senate shall become a candidate for any State, county or municipal office during his term of office. 3. The Governor of the State shall not be eligible to become a candidate for a party nomination as a candidate for a seat in the United States Senate during his term of office and for one year after the expiration of such term. 4. A member of the Legislature may not become a candidate for a party nomination as a candidate for a seat in Congress of the United States for two years after the passage of a congressional apportionment Act by the legislative body of which he was a member. By this means, not only will State machines, but also, Federal machines be made an impossibility in the State of Oklahoma. TO MAKE THE SHORT BALLOT POSSIBLE. I further recommend that constitutional amendments be submitted, so as to cause the Clerk of the Supreme Court, Commissioner of Insurance, the State Examiner and Inspector and such other state officers as you deem advisable except those made by the terms of the Constitution ex-officio Commissioners of the Land Office, to be filled by appointment. On account of the number of elective offices in this State, the length of the ballot often results in confusing the voters. If we are to ever have an opportunity to try out the wisdom of the short ballot, it is essential that these amendments be submitted so that the people can determine as to whether they want to try out the short ballot plan. In framing these amendments, it might be wise to submit them in such a manner as to make these offices appointive until otherwise provided by law. Then if the people were to become dissatisfied with the appointive plan, a change could be made without an amendment to the Constitution. INSURANCE RATES. Provision should be made for the fixing of fire insurance rates. This is a work of great magnitude and should not be left to the discretion and judgment of any one person. At the same time, it should be done in such a way as not to occasion the creation of any more offices than reasonably practical. I accordingly recommend the creation of a State Fire Insurance Commission, to be composed of the Insurance Commissioner and the Fire Marshall, as ex-officio members, the other members to be appointed, and to be secretary of said board. Said board should have the power to suspend and fix rates and do everything necessary to the effective regulation and control of the fire insurance business in the State. Provision should be made for the review of the actions of this insurance commission by judicial proceedings, thereby safeguarding the powers of said commission. GINS AND GINNING. Gins should be specifically declared by statute to be public utilities; and before a gin is installed, a license should be required from the Corporation Commission. The regulation and control of the ginning business and the fixing of the price therefore [sic], I 13 recommend to be placed under the jurisdiction and control of the Corporation Commission, just as public service corporations are. ACCOUNTING AND BOOKKEEPING. A system of accounting and bookkeeping should be established in all state institutions on a reasonable check to disclose irregularities and deficiencies and this system should apply not only to state institutions, but, also, to county government. I recommend legislation to bring this about. THE WILL OF THE PEOPLE AS TO ABOLISHING OFFICES TO BE SUSTAINED. The Legislature of 1913 passed an Act providing for the consolidation of a certain offices. The validity of this Act is now being tested in the courts. I recommend the passage of a declaratory act so as to obviate these objections and carry into effect at once the expressed will of the people. Litigation, as a rule is at the expense of the taxpayers. By the immediate passage of such a declaratory act, not only will this expense be obviated, but office-holders will be made to realize that they cannot hold on to the public teat by means of a technicality. PERMANENT SCHOOL FUND TO BE IN STATE TREASURY. The permanent school fund should be converted into the State Treasury and not held by the Secretary of the Board of School Land Commissioners. This cannot be done, however, without such constitutional amendment as will provide for this permanent fund to be converted into the Treasury, subject to the charge and management of the Board of School Land Commissioners, but with an automatic provision for the same to be drawn out and loaned on warrants of the School Land Commissioners through the State Auditor’s office. PERMANENT SCHOOL FUND—ITS INVESTMENT. Specific provision should be made for the loaning and investment of the permanent school fund. This fund should be apportioned by the State Board of School Land Commissioners to each county pro rata on an agricultural per capita basis, and the same loaned through the agency of a board in each county to be composed of the County Clerk, County Judge and County Assessor. This contemplates a plan which will cause local inspection, appraisement and examination, that board then to make its recommendation and transmit the papers to the State School Land Board, who shall finally approve or disapproved the application after inspection again made through the State Board.. I recommend the consideration of this subject by you and the passage of such laws as may be necessary to place same into effect. OIL PIPE LINES AND PRODUCING COMPANIES TO BE SEPARATE. Oil pipe lines should not be permitted to become producers. These lines are now common carriers and should be confined in their business as such and divorced from the management and control of producing companies, so that they may not have common officials. I accordingly recommend the passage of such necessary legislation, and all other legislation essential for the consideration of the natural resources of the State. A WORKMAN’S COMPENSATION ACT—SHORTER HOURS FOR WOMEN. A fair, just and adequate compensation act to be administered by the State should be enacted. I earnestly recommend the enactment of such a law by this Legislature. Also 14 a just and fair law providing for shorter hours for women in the various employments, the kind and character of employment being considered in the terms of the bill, is necessary. I recommend the passage of such a statute. ELECTIONS. Our primary election laws should be overhauled and a preferential system adopted, by which the voters may be permitted to express their choice in such a way that the party nominee shall be the choice of the majority of the voters. It is also desirable that effective means be provided for the publicity pamplet [sic] in reaching each voter when questions are submitted to the voters of the State by means of the initiative and referendum. PANAMA-PACIFIC EXPOSITION. Private individuals have formed an association in this State for the purpose of erecting an Oklahoma building at the Panama-Pacific Exposition at San Francisco and have endeavored to raise sufficient funds for that purpose. It appears that on account of the depressed conditions, resulting from the general European war, that that has been rendered impractical, and it will take the sum of $5,000.00 to complete the building. Mrs. Fred Sutton has pledged her property for this amount. In addition to this pledge, she has given her time to further this object. I recommend that the Legislature consider the advisability of making an appropriation of $5,000.00 to help complete the building, to be available only when sufficient funds are on hand to pay the entire cost of the building. APPROPRIATIONS. I respectfully call your attention to the conditions now prevailing in the State. On account of the depression occasioned by the great European war certain parts of our State in a financial way are greatly handicapped. To impose any more burdens upon them by way of taxes than is absolutely necessary would be an abuse of power. So I urge that in making appropriations we stay within the narrowest limit. Our institutions and departments must cramp and stint themselves so as to meet these conditions and be in harmony with the conditions of the people. I urge that no appropriation, at least in excess of that heretofore made, be made without our earnest consultation relative thereto. As the occasion arises I shall have other recommendations as to other departments to make. I have specialized as to a great many boards, officers and employes [sic], which I think should be abolished. I did this so as to assume a joint burden with you in initiating this retrenchment. This is not a pleasant duty, but is comes our way because the people have preferred us by the exercise of their suffrage. I hope to see every board and every commission in the State abolished except that of the Board of Affairs, Board of Education and the State Election Board. The creation of the State Fire Insurance Commission is not in fact the creation of a new commission. The additional member will act a secretary and it is intended that he is to be a working secretary. I feel sure that the members of these two honorable bodies are zealous for retrenchment and reform and for the constructive protection of the people. This is a period in the history of this new commonwealth which calls for efficient service in every public station. I join arms with you with a view of presenting a solid phalanx in carrying out these measures and re-establishing government in the hearts and affections of the people. THE JOINT SESSION DISSOLVED 15 About Digitizing the Governors’ State of the State Addresses Section 9, Article 6 of the Constitution of Oklahoma provides as follows: “At every session of the Legislature, and immediately upon its organization, the Governor shall communicate by message, delivered to joint session of the two houses, upon the condition of the State; and shall recommend such matters to the Legislature as he shall judge expedient.” From statehood in 1907 to present, the state of the state addresses of Oklahoma’s Governors have been recorded in pamphlets, booklets, and Senate Journals. One could not foresee the toll that time would take on the earliest of these documents. When these items first arrived at the Oklahoma State Archives, the leather bindings had dried considerably, cracking the spines significantly. Due to the acidity in the paper, many pages have darkened with age. Some of the more brittle pamphlets crumble at the slightest touch. Thus when we decided to digitize these materials, we faced two challenges: the safety of the original documents and ease of viewing/reading for patrons. Our primary objective was that the unique and historic qualities of the documents should be reflected in the website. However, older fonts would not digitize clearly when scanned and even using a flatbed scanner could cause the bindings to worsen. An image of each page would increase download time considerably and any hand-written remarks or crooked pages could be lost. We decided to retype each document with every period, comma, and misspelled word to maintain the integrity of the document while placing some unique images of the documents online. Patrons can download the addresses quicker and view them clearer as well as save, print, and zoom with the Adobe Acrobat Reader. We have learned much from our efforts and we hope that our patrons are better served in their research on the state of the state addresses of Oklahoma’s Governors.
Williams, McClure & Parmelee is dedicated to high quality legal representation of businesses and insurance companies in a variety of matters. We are experienced Texas civil litigation attorneys based in Fort Worth who know Texas courts and Texas law. For more information, please contact the law firm at 817-335-8800. The firm’s new office location is 5601 Bridge Street, Suite 300, Fort Worth, Texas 76112.
TEXAS STATE COUNCIL OF DEFENSE | The Handbook of Texas Online| Texas State Historical Association (TSHA)
TEXAS STATE COUNCIL OF DEFENSE. The Texas State Council of Defense, a branch of the National Council of Defense, established on August 29, 1916, resulted from a request of Secretary of War Newton D. Baker to Governor James E. Ferguson on April 9, 1917, to have a state council formed to meet the national emergency resulting from World War I. After the declaration of war, the need of a central Washington organization to be a clearinghouse between the states resulted in the group called the Section on Cooperation between the States, which called a conference in Washington in May 1917 to formulate plans for organization of state councils. The Texas State Council, composed of thirty-eight members appointed by Governor Ferguson, met first in Dallas on May 10, 1917. Given legal status by the Thirty-fifth Legislature on May 14, 1917, its final organization was completed when O. E. Dunlap was made chairman, Thomas H. Ballqv, vice chairman, J. F. Carl secretary, and Royal A. Ferris, treasurer. State council meetings were held in Dallas, Austin, San Antonio, and Galveston. The council placed at the disposal of the nation the entire resources of the state, centralized and coordinated state war work, organized and directed local councils, and sponsored independent state defense activities. It worked through ten committees: finance, publicity, legal, transportation, coordination, sanitation and medicine, labor, food supply and conservation, military affairs, and state protection. With over 240 county councils and about 15,000 community councils, its organization was at the disposal of each war loan drive and each Red Cross drive. It also sponsored the Texas Division of the Woman’s Committee that promoted health, provided recreation, and aided in war drives. The local councils set up programs to generate patriotism, sell war bonds, recruit soldiers, and maintain enthusiasm and support for the war effort in general. Most groups established Home Guards-organizations to promote patriotism and provide militia support if necessary. The Texas State Council of Defense existed through World War I. Council work was also conducted for six months after the Armistice to render aid to returning soldiers. The last council meeting was on June 7, 1919.
Texas War Records Collection, Dolph Briscoe Center for American History, University of Texas at Austin. Oran Elijah Turner, History of the Texas State Council of Defense (M.A. thesis, University of Texas, 1926).
The following, adapted from the Chicago Manual of Style, 15th edition, is the preferred citation for this article.
Williams, McClure & Parmelee is dedicated to high quality legal representation of businesses and insurance companies in a variety of matters. We are experienced Texas civil litigation attorneys based in Fort Worth who know Texas courts and Texas law. For more information, please contact the law firm at 817-335-8800. The firm’s new office location is 5601 Bridge Street, Suite 300, Fort Worth, Texas 76112.
The recorded history of insurance law in Texas and the predecessors of the Texas Department of Insurance date back to 1876. The Texas Constitution adopted that year authorized the Legislature to create the Office of Insurance Commissioner when it deemed necessary.
Following are key events in Texas insurance regulation:
1876 – 15th Legislature creates TDI’s predecessor-the Department of Insurance, Statistics and History. In addition to his insurance-related duties, the commissioner is charged with keeping information and statistics on the state’s population, wealth and general resources. He is also the state historian, state librarian, and superintendent of public grounds and buildings.
1887 – 20th Legislature expands the commissioner’s authority to include agriculture and renames the agency the Department of Agriculture, Insurance, Statistics and History. The commissioner also is made an ex-officio member of the Texas A&M College Board of Directors.
1905 – the first state banking act is passed, adding the regulation and supervision of state banks to the office of the Commissioner of Agriculture, Insurance, Statistics and History.
1907 – 30th Legislature creates the office of Commissioner of Agriculture and renames TDI’s predecessor the Department of Insurance and Banking.
1909 – Commissioner of Insurance and Banking is made chair of the newly created Fire Insurance Rating Board. The commissioner also becomes supervisor of all building and loan associations in Texas.
1910 – Fire rating board is replaced by the State Insurance Board and given authority to promulgate fire rates.
1913 – State Insurance Board’s name is changed to the State Fire Insurance Commission and its authority is broadened. Workers’ compensation law is passed and Texas Employers Insurance Association (TEIA) is created.
1923 – 38th Legislature separates insurance and banking functions by creating the Department of Insurance and the Banking Department, each headed by a separate commissioner. The Legislature transfers rate-making authority in the area of workers’ compensation from TEIA to the State Fire Insurance Commission.
1927 – 40th Legislature creates the Board of Insurance Commissioners, composed of the Life Insurance Commissioner, the Fire Insurance Commissioner and Casualty Insurance Commissioner. The Legislature also gives the insurance commissioner the power to approve or disapprove auto insurance rates and to promulgate uniform policy forms.
1951 – Insurance laws are codified as Texas Insurance Code.
1954 – 1958 — Insurance industry in Texas is rocked by domestic scandals. As a result, the Legislature passes at least 16 insurance-related bills, among them measures strengthening examination laws, increasing minimum capital and surplus requirements, and giving more control to the Board for the issuing of certificates of authority.
1957 – Modern Board — the State Board of Insurance — takes shape as a result of changes mandated in the agency’s operation by the 55th Legislature. The three-member Board is given responsibility for hiring a Commissioner of Insurance to serve at its pleasure as chief administrative officer.
1975 – The Legislature creates a separate State Fire Marshal’s Office (SFMO).
1987 – 70th Legislature creates the Office of Consumer Protection (OCP) under the SBI.
1988 – National County Mutual insolvency — largest ever in Texas — leads to resignation of Commissioner, many changes at SBI and reform legislation passed by the 71st Legislature in 1989.
1989 – Legislature enacts major workers’ compensation reform law.
1991 – 72nd Legislature passes the most comprehensive insurance reform legislation (HB2 and HB62) in Texas history, affecting everything from ratemaking to the compulsory auto insurance liability law. The State Board is renamed the Texas Department of Insurance. OCP is made independent of TDI, renamed the Office of Public Insurance Counsel (OPIC) and its powers broadened. The SFMO becomes part of new Texas Commission on Fire Protection.
1993 – 73rd Legislature passes legislation giving most of Board’s authority to a Commissioner to be appointed by the Governor in odd-numbered years to a two-year term and confirmed by the Texas Senate. It allows Board to continue its authority over rates, policy forms and related matters until August 31, 1994. On November 18, 1993, however, the Board votes unanimously to turn over all remaining authority to the Commissioner as of December 16, 1993.
2003 – In response to rising homeowners insurance premiums, the Legislature provides TDI with new authority to regulate all property and casualty insurance rates in Texas, eliminating exemptions for Lloyd’s and County Mutual companies. The Legislature also shifts the method of automobile and property insurance regulation from a benchmark system to a file-and-use system.
2005 – The Legislature abolishes the Texas Workers’ Compensation Commission and transfers its duties to TDI.
2008 – The Texas coast is struck by two hurricanes: Hurricane Dolly hits South Padre Island on July 23rd and Hurricane Ike, the most destructive storm in Texas history, makes landfall on Galveston Island on September 13th. Agency response includes consumer assistance with resolving claims and disputes, investigation of fraud and administrative violations by agents and companies, financial monitoring of companies, and direct informational assistance to consumers in the field at disaster response centers.
2011 – The Texas Windstorm Insurance Association is placed under Administrative Oversight following both a financial examination and a limited scope examination. The large number of Hurricane Ike claims had stretched the Association’s resources resulting in customer service problems, questionable personnel actions, and financial irregularities.
Williams, McClure & Parmelee is dedicated to high quality legal representation of businesses and insurance companies in a variety of matters. We are experienced Texas civil litigation attorneys based in Fort Worth who know Texas courts and Texas law. For more information, please contact the law firm at 817-335-8800. The firm’s new office location is 5601 Bridge Street, Suite 300, Fort Worth, Texas 76112.
RETENTION SCHEDULE FOR RECORDS OF PUBLIC SAFETY AGENCIES This schedule establishes mandatory minimum retention periods for records commonly found in public safety agencies. No local government office may dispose of a record listed in this schedule prior to the expiration of its retention period. A records control schedule of a local government may not set a retention period that is less than that established for the record in this schedule. Original paper records listed in this schedule may be disposed of prior to the expiration of their minimum retention periods if they have been microfilmed or electronically stored pursuant to the provisions of the Local Government Code, Chapter 204 or Chapter 205, as applicable, and rules of the Texas State Library and Archives Commission adopted under authority of those chapters. Actual disposal of such records by a local government is subject to the policies and procedures of its records management program. Destruction of local government records contrary to the provisions of the Local Government Records Act of 1989 and administrative rules adopted under it, including this schedule, is a Class A misdemeanor and, under certain circumstances, a third degree felony (Penal Code, Section 37.10). Anyone destroying local government records without legal authorization may also be subject to criminal penalties and fines under the Public Information Act (Government Code, Chapter 552). P. O. Box 12927 • Austin, Texas • 78711-2927 • (512) 421-7200 Effective August 14, 2011 Introduction The Government Code, Section 441.158, provides that the Texas State Library and Archives Commission shall issue records retention schedules for each type of local government, including a schedule for records common to all types of local government. The law provides further that each schedule must state the retention period prescribed by federal or state law, rule of court, or regulation for a record for which a period is prescribed; and prescribe retention periods for all other records, which periods have the same effect as if prescribed by law after the records retention schedule is adopted as a rule of the Commission. The retention period for a record applies to the record regardless of the medium in which it is maintained. Some records listed in this schedule are maintained electronically in many offices, but electronically stored data used to create in any manner a record or the functional equivalent of a record as described in this schedule must be retained, along with the hardware and software necessary to access the data, for the retention period assigned to the record, unless backup copies of the data generated from electronic storage are retained in paper or on microfilm for the retention period. This includes electronic mail (email), websites and electronic publications. Unless otherwise stated, the retention period for a record is in calendar years from the date of its creation. The retention period applies only to an official record as distinct from convenience or working copies created for informational purposes. Where several copies are maintained, each local government should decide which shall be the official record and in which of its divisions or departments it will be maintained. Local governments in their records management programs should establish policies and procedures to provide for the systematic disposal of copies. A local government record whose retention period has expired may not be destroyed if any litigation, claim, negotiation, audit, public information request, administrative review, or other action involving the record is initiated; its destruction shall not occur until the completion of the action and the resolution of all issues that arise from it. A local government record whose retention period expires during any litigation, claim, negotiation, audit, public information request, administrative review, or other action involving the record may not be destroyed until the completion of the action and the resolution of all issues that arise from it. If a record described in this schedule is maintained in a bound volume of a type in which pages were not meant to be removed the retention period, unless otherwise stated, dates from the date of last entry. If two or more records listed in this schedule are maintained together by a local government and are not severable, the combined record must be retained for the length of time of the component with the longest retention period. A record whose minimum retention period on this schedule has not yet expired and is less than permanent may be disposed of if it has been so badly damaged by fire, water, or insect or rodent infestation as to render it unreadable, or if portions of the information in the record have been so thoroughly destroyed that remaining portions are unintelligible. If the retention period for the record is permanent in this schedule, authority to dispose of the damaged record must be obtained from the Director and Librarian of the Texas State Library and Archives Commission. The Request for Authority to Destroy Unscheduled Records (Form SLR 501) should be used for this Local Schedule PS Page 2 of 56 Effective August 14, 2011 purpose. Certain records listed in this schedule are assigned the retention period of AV (as long as administratively valuable). This retention period affords local governments the maximum amount of discretion in determining a specific retention period for the record described. Use of Asterisk (*) The use of an asterisk in this third edition of Local Schedule PS indicates that the record is either new to this edition, the retention period for the record has been changed, or substantive amendments have been made to the description of or remarks concerning the record. An asterisk is not used to indicate minor amendments to grammar or punctuation. ABBREVIATIONS USED IN THIS SCHEDULE AV – As long as administratively valuable CE – Calendar year end CFR – Code of Federal Regulations FE – Fiscal year end LA – Life of asset TAC – Texas Administrative Code U.S.C. – United State Code US – Until superseded Local Schedule PS Page 3 of 56 Effective August 14, 2011 Table of Contents Part 1: Records Common to Public Safety Agencies _____________________________________________________________________ page 6 Section 1-1: General Operations Records ____________________________________________________________________________ page 6 Section 1-2: Vehicle, Equipment, and Animal Records __________________________________________________________________ page 8 Section 1-3: Personnel Records __________________________________________________________________________________ page 12 Section 1-4: Emergency Communications Records ___________________________________________________________________ page 13 Part 2: Law Enforcement Records __________________________________________________________________________________ page 14 Section 2-1: Arrest and Offense Records ___________________________________________________________________________ page 14 Section 2-2: Incident Records ____________________________________________________________________________________ page 17 Section 2-3: Operational Support Records __________________________________________________________________________ page 19 Section 2-4: Jail Records ________________________________________________________________________________________ page 23 Section 2-5: Juvenile Records ____________________________________________________________________________________ page 26 Section 2-6: Records of Writs and Process __________________________________________________________________________ page 37 Section 2-7: Permit Records and Associated Documentation ____________________________________________________________ page 38 Section 2-8: Financial Records ____________________________________________________________________________________ page 39 Section 2-9: Personnel and Training Records ________________________________________________________________________ page 40 Section 2-10: Miscellaneous Records ______________________________________________________________________________ page 41 Part 3: Records of County Medical Examiners ________________________________________________________________________ page 42 Section 3-1: Death Investigation Records ___________________________________________________________________________ page 42 Section 3-2: Laboratory Records _________________________________________________________________________________ page 44 Local Schedule PS Page 4 of 56 Effective August 14, 2011 Section 3-3: Miscellaneous Records _______________________________________________________________________________ page 45 Part 4: Records of Fire Fighting and Emergency Medical Service Agencies ___________________________________________________ page 45 Section 4-1: Fire and Emergency Medical Response Records ____________________________________________________________ page 45 Section 4-2: Fire Prevention and Inspection Records __________________________________________________________________ page 46 Section 4-3: Apparatus and Equipment Records _____________________________________________________________________ page 49 Section 4-4: Training Records ___________________________________________________________________________________ page 50 Section 4-5: Miscellaneous Records _______________________________________________________________________________ page 51 Part 5: Records of Community Supervision and Corrections (Adult Probation) Departments _____________________________________ page 51 Part 6: Records of County, District, and Criminal District Attorneys ________________________________________________________ page 52 Section 6-1: Case Records ______________________________________________________________________________________ page 52 Section 6-2: Administrative and Financial Records ____________________________________________________________________ page 55 Local Schedule PS Page 5 of 56 Effective August 14, 2011 RECORDS OF PUBLIC SAFETY AGENCIES Retention Notes: a) The term “public safety agency” means any local law enforcement, fire fighting, emergency medical services, or emergency communications department, district, or office; and the offices of the county medical examiner, district attorney, county attorney, and community supervision and corrections. b) For administrative, financial, personnel, and support service records not included in this schedule, see Local Schedule GR (Records Common to All Governments). PART 1: RECORDS COMMON TO PUBLIC SAFETY AGENCIES Retention Note: This part provides retention periods for records common to two or more of the public safety agencies included in this schedule. SECTION 1-1: GENERAL OPERATIONS RECORDS Record Number Record Title Record Description Retention Period Remarks PS4025-01 ACTIVITY AND STATISTICAL REPORTS Narrative and/or statistical activity reports prepared by shift supervisors, unit heads, or other public safety personnel on daily or other periodic activities, except reports of the types included in other records groups in this schedule. PS4025-01a ACTIVITY AND STATISTICAL REPORTS Daily and weekly reports. 1 year. PS4025-01b ACTIVITY AND STATISTICAL REPORTS Monthly, bimonthly, quarterly, or semi-annual reports. 3 years. PS4025-01c ACTIVITY AND STATISTICAL REPORTS Annual reports. PERMANENT. PS4025-01d ACTIVITY AND STATISTICAL REPORTS Chronological logs or registers of activities, usually kept at station, company, or unit level, of daily activities such as roll calls, briefings, visitors, drills, inspections, except for records of similar types noted elsewhere in this schedule.
Williams, McClure & Parmelee is dedicated to high quality legal representation of businesses and insurance companies in a variety of matters. We are experienced Texas civil litigation attorneys based in Fort Worth who know Texas courts and Texas law. For more information, please contact the law firm at 817-335-8800. The firm’s new office location is 5601 Bridge Street, Suite 300, Fort Worth, Texas 76112.
As used in this chapter, the following words shall have the meanings ascribed to them in this section:
(1) Means an enclosure or structure that complies with all of the requirements of section 6-13(a) of this Code.
(2) Adequate enclosure does not mean enclosure or confinement by an invisible or electronic fence.
Adoption of a dog or cat: The release of the animal from the care, custody, control or ownership of the animal care and control center to a person who agrees to assume ownership responsibilities for the care of that animal as defined in this chapter.
Aggressive animal: Any animal which, when unprovoked chases or approaches a person upon any public or private property in a menacing fashion or apparent attitude of attack such that a reasonable person would believe the animal would cause physical injury to the person.
Aggressive dog: Means any dog that the director determines has, without provocation:
(1) Repeatedly attacked and injured other domestic animals within its own enclosure, provided, however that basic interaction and play among animals of the same species does not constitute an “attack” for purposes of this provision; or
(2) Repeatedly bitten one (1) or more persons who are lawfully inside the animal’s enclosure; or
(3) Repeatedly attempted to climb over, dig under, chew through, break, or otherwise escape from its enclosure in an attempt to attack, chase, or harass a person or another domestic animal as observed by a person charged with enforcing this chapter.
Animal: Any living, vertebrate creature, domestic or wild, other than homo sapiens.
Animal care and control center: Center operated by City of Fort Worth.
Animal care and control center: Any facility operated or designated by the city for the purpose of impounding and caring for animals as prescribed by law.
Animal [care and] control authority: A municipal animal [care and] control office with authority over the area where the dog is kept.
Animal care and control officer: The animal care and control manager and his/her authorized agents or employees of the animal care and control division.
Animal establishment: Any pet shop, kennel, grooming shop, auction, performing animal exhibition, or other facility engaged in the handling of domestic animals, excluding veterinary clinics, hospitals, animal shelters and individuals caring for animals in their private residence in compliance with the terms of this chapter.
Animal shelter: A facility that keeps or legally impounds stray, homeless, abandoned, or unwanted animals.
Applicable fees: Those reasonable charges incurred for the care and maintenance provided by the animal care and control center for impounded animals.
Assistance animal: An animal that is specially trained or equipped to help a person with a disability and that:
(1) Is used by a person with a disability who has satisfactorily completed a specific course of training in the use of the animal; and
(2) Has been trained by an organization generally recognized by agencies involved in the rehabilitation of persons with disabilities as reputable and competent to provide animals with training of this type.
At large or running at large: Any animal not kept under restraint.
Bodily injury: Physical pain, illness, or any impairment of physical condition.
Cat: A commonly domesticated member of the Felidae (feline) family, other than a lion, tiger, bobcat, jaguar, panther, leopard, cougar or other prohibited animal.
Cat license: A legally granted privilege, upon compliance with the terms of this chapter, to own, keep, harbor, or have custody or control of a cat within the city.
Cat license tag: A metal tag authorized by the city for attachment to a cat collar which displays a serial number corresponding to the number of cat license for such animal, and which shows the year the license was issued by the city or a designated veterinarian.
Circus: A commercial variety show featuring animal acts for public entertainment.
City: The City of Fort Worth.
City health officer: The director of public health for the city, or his/her designated representatives.
Dangerous animal: An animal, other than a dog, that:
(1) Makes an unprovoked attack on a person or other animal that causes bodily injury and occurs in a place other than an enclosure in which the animal was being kept and that was reasonably certain to prevent the animal from leaving the enclosure on its own; or
(2) Commits unprovoked acts in a place other than an enclosure in which the animal was being kept and that was reasonably certain to prevent the animal from leaving the enclosure on its own and those acts cause a person to reasonably believe that the animal will attack and cause bodily injury to that person.
Dangerous dog: A dog that:
(1) Makes an unprovoked attack on a person or other animal that causes bodily injury and occurs in a place other than an enclosure in which the dog was being kept and that was reasonably certain to prevent the dog from leaving the enclosure on its own; or
(2) Commits unprovoked acts in a place other than an enclosure in which the dog was being kept and that was reasonably certain to prevent the dog from leaving the enclosure on its own and those acts cause a person to reasonably believe that the dog will attack and cause bodily injury to that person.
Designated veterinarian: A licensed veterinarian who has been approved by the city animal care and control manager to collect fees and issue cat license tags or dog license tags for animals upon proof of an owner’s current rabies vaccination for that animal.
Director: The Director of the City of Fort Worth Code Compliance Department or that individual’s designee.
Direct physical control: Within the owner’s observation and in such close proximity as to permit the owner reasonable opportunity to control the animal, should it become necessary to do so in order to protect the animal, a human or another animal from harm.
Dog: A commonly domesticated member of the Canidae (canine) family, other than a wolf, jackal, fox, dingo, coyote, or other prohibited canines.
Dog license: A legally granted privilege, upon compliance with the terms of this chapter, to own, keep, harbor or have custody or control of a dog within the city.
Dog license tag: A metal tag authorized by the city for attachment to a dog collar which displays a serial number corresponding to the number of dog license for such animal, and which shows the year the license was issued by the city or a designated veterinarian.
Dog tethering: Using a chain, rope, tether, leash, cable, or other device to attach a dog to a stationary object or trolley system.
Domestic animal: Includes livestock, caged or penned fowl other than animals belonging to the class aves, order Falconiforms and subdivision Raptae, normal household pets, such as but not limited to dogs, cats, cockatiels, ferrets, hamsters, guinea pigs, gerbils, rabbits, fish or small, nonpoisonous reptiles or nonpoisonous snakes.
Emu: A fowl of the Order of Struthioniforme.
Ferret license: A legally granted privilege, upon compliance with the terms of this chapter, to own, keep, harbor, or have custody or control of a ferret within the city.
Ferret license tag: A metal tag authorized by the city for attachment to a ferret collar which displays a serial number corresponding to the number of ferret license for such animal, and which shows the year the license was issued by the city or a designated veterinarian.
Fowl: Any bird.
Guard dog: Any dog which has been trained for the purpose of protecting property by a guard dog company which is required to be licensed pursuant to Art. 4413(29bb), V.T.C.S., as amended from time to time.
High risk animals: Animals which have a high probability of transmitting rabies; including but not limited to skunks, bats, foxes, coyotes and raccoons.
Impound: To take an animal into custody by the city; impoundment shall begin at the time any animal [care and] control officer or police officer takes control of an animal either by hand, rope, trap, projectile or confinement to a vehicle.
Institution of higher education: Has the meaning as defined by Section 61.003(8) of the Education Code, V.T.C.A., as amended from time to time.
Intact animal: An animal which is sold without a spay/neuter contract.
Kennel: Any premises in which four (4) or more dogs three (3) months of age or older are kept; or where the business of buying, selling, breeding, grooming, training or boarding of dogs is conducted; does not include veterinary hospitals or humane societies.
Licensed veterinarian: A human being authorized to practice veterinary medicine who is currently licensed by the Texas State Board of Veterinary Medical Examiners.
Livestock: An animal raised for human consumption or an equine animal including, but not limited to, a horse, stallion, mare, gelding, filly, colt, mule, hinny, jack, jennet, hog, sheep, goat, a head of any species of cattle, or an emu, ostrich or rhea.
Livestock dog: A dog which is used for agrarian purposes in the herding and/or guarding of livestock.
Local rabies control authority: The officer designated by the city under the Health and Safety Code § 826.017 or his or her designee.
Low risk animals: Animals which have a low probability of transmitting rabies; including but not limited to all animals of the orders Marsupialia, Insectivora, Rodentia, Lagomorpha and Xenarthra.
Miniature swine: Any member of the swine family which has, through selective breeding, been genetically manipulated so as to attain a maximum height of twenty (20) inches at the shoulder and a maximum weight of one hundred twenty (120) pounds.
Ostrich: A fowl of the Order of Struthioniforme.
Owner: Any person who owns, keeps, shelters, maintains, feeds, harbors or has temporary or permanent custody of a domestic or prohibited animal, or who knowingly permits a domestic or prohibited animal to remain on or about any premises occupied by that person over which that person has control. An animal shall be deemed to be owned by a person who harbored it, fed it or sheltered it for three (3) consecutive days or more.
Person: means an individual, association, partnership, corporation, trust, estate, joint-stock company, or foundation.
Pet: Any animal kept for pleasure rather than utility.
Pet shop: A commercial enterprise regularly engaged in the buying, selling, grooming, breeding or boarding of animals.
Places of public assembly: Any place where people congregate, such as public buildings, parks, schools, flea markets and recreations areas; does not include a private residence, residential or commercial street.
(1) Any animal not normally born and raised in captivity, including but not limited to the following:
a. Class Reptilia: Family Helodermatidae (venomous lizards) and Family Hydrophiidae (Venomous Marine snakes); Family Viperidae (rattlesnakes, pit vipers and true vipers); Family Elapidae (coral snakes, cobras, and mambas); Family Columbridae-Dispholidus Typus (boomslang); Bioga Dendrophilia (mangrove snake) and Kirklandii (twig snake only); Order Crocodilia (such as crocodiles and alligators);
b. Class Aves: Order Falconiforms (such as hawks, eagles, falcons and vultures);
c. Class Mammalia: Order Carnivores,
1.Family Felidea (such as lions, tigers, bobcats, jaguars, leopards and cougars), except commonly domesticated cats;
2. Family Canidae (such as wolves, dingos, coyotes, foxes and jackals), and any hybrid of an animal listed in his section except commonly domesticated dogs;
3. Family Mustelida (such as weasels, skunks, martins, minks, badgers and otters) except ferrets; 4. Family Procyonidae (such as raccoons and coati);
5. Family Ursidae (such as bears);
6. Marsupialia (such as kangaroos, opossums, koala bears, wallabys, bandicoots, and wombats);
7. Chiroperta (bats);
8. Edentata (such as sloths, anteaters, and armadillo);
9. Probosidea (elephants);
10. Primata (such as monkeys, chimpanzees, orangutans, and gorillas);
11. Rodentia (such as beavers and porcupines); and
12. Ungulata (such as antelope, deer, bison and camels);
d. Class Amphibi: Poisonous frogs. Does not include non poisonous reptiles or non poisonous snakes.
(2) Does not include livestock, fowl or normal household pets, such as but not limited to dogs, cats, cockatiels, ferrets, hamsters, guinea pigs, gerbils, rabbits, fish or small, nonpoisonous reptiles, or nonpoisonous snakes.
Properly fitted with respect to a collar or other neck restraint: One that measures the circumference of a dog’s neck plus at least one (1) inch. With respect to a harness, properly fitted means one (1) that is of an adequate size, design, and construction as appropriate for the dog’s size and weight.
Public nuisance: Whatever is declared by the city health officer to be dangerous to human life, health or welfare, or to threaten to become detrimental to the public health or welfare.
Quarantine: To take into custody and place in confinement as defined in this chapter isolated from human beings and other animals in such a way as to preclude the possibility of disease transmission. The quarantine period for a dog, cat, or a domestic ferret in rabies quarantine is ten (10) days from the date of the bite, scratch or other exposure, or as recommended by the regional veterinarian from the Texas Department of Health.
Rabies: An acute viral disease of man and animal affecting the central nervous system and usually transmitted by an animal bite.
Releasing agency: Animal care and control center, animal shelter, or nonprofit organization engaged in caring for animals.
Replacement license: A license issued to the new owner of a dog or cat which was currently licensed with the city at the time of the transfer of the ownership of the animal. A replacement license shall be valid only through the expiration date of the original license.
Restraint: An animal is under restraint under the following conditions:
(1) It is kept in an adequate enclosure; or
(2) It is accompanied by its owner or trainer at a bona fide dog show, field trial or exhibition; or
(3) It is secured by a leash of at least five (5) and not more than ten (10) feet in length and of sufficient strength to control the animal while the animal is being walked; or
(4) A specially trained dog that is used by a blind or deaf individual to aid him/her within the city; or
(5) A guard dog in the performance of duty in an enclosed building or securely fenced and locked area which is marked on all sides with signs in four-inch letters stating “guard dog” and clearly visible to the public; or
(6) A dog in a place of public assembly and effectively and securely muzzled in order to prevent the dog from biting.
(7) A cat on the boundaries of the premises of the person who has charge, care or ownership of the cat.
Rhea: A fowl of the Order of Rheiforme.
Sanitary: Any condition of good order and cleanliness which discourages and limits disease transmission.
Secure enclosure: A fence or structure of at least six (6) feet in height, forming or causing an enclosure suitable to prevent the entry of young children, and suitable to confine a dangerous animal in conjunction with other measures which may be taken by the owner. Such enclosure shall be securely enclosed and locked and designed with secure sides, top and bottom and shall be designed to prevent the animal(s) from escaping from the enclosure. The enclosure shall be posted with signs on all sides in four-inch letters warning of the presence of a dangerous animal and shall include a symbol of a dangerous animal understandable by young children.
Securely enclosed or confined:
(1) Means an area that is completely surrounded by a substantial fence or enclosure of sufficient strength, height, construction, materials, and design as to prevent any animal from escaping from the area and in manner that will isolate the animal from the public and other animals except for animals owned or under the control of the owner.
(2) Securely enclosed or confined does not mean enclosure or confinement by an invisible or electronic fence.
(3) Such fence or enclosure shall comply with the appropriate zoning regulations in Article 3, section 5.304 of this Code. Serious bodily injury: An injury characterized by severe bite wounds or severe ripping and tearing of muscle that would cause a reasonable prudent person to seek treatment from a medical professional and would require hospitalization without regard to whether the person actually sought medical treatment.
Service animal: An animal that is individually trained to do work or perform tasks for the benefit of an individual with a disability or by the virtue of a natural aptitude or acquired ability is able to provide therapeutic treatment, mitigation, safety or rescue.
Sporting dog: A dog which is used for recreational purposes in the hunting and/or tracking of game.
Sterilization: Surgical removal of the reproductive organs of a dog or cat to render the animal unable to reproduce.
Stray: An animal which is roaming with no physical restraint beyond the premises of an animal’s owner or keeper.
Unprovoked attack by a dog: An incident in which a dog which attacked a human being or an animal was not hit, kicked, or struck by a human being with any object or part of a human being’s body, nor was any part of the dog’s body pulled, pinched, or squeezed by a human being, nor was the dog taunted or teased by any human being, nor was the human being in the dog’s territory on the property of the dog’s owner at the time of the attack.
Vaccinated animal: Unless otherwise indicated, an animal vaccinated against rabies within the past twelve (12) months by a licensed veterinarian.
Vaccination certificate: The certificate issued by a licensed veterinarian on a form approved by the Texas Department of Health for presentation to the animal [care and] control section as a condition precedent to the granting of a dog or cat license and showing on its face that, at the time of such presentation, the dog or cat covered thereby has been vaccinated for rabies.
Veterinary hospital: Any establishment maintained and operated by a licensed veterinarian for surgery, diagnosis and treatment of disease and injuries to animals.
Vis major: A loss that results immediately from a natural cause without the intervention of persons, and which could not have been prevented by the exercise of prudence, diligence, and care.
Working dog: A dog which is:
(1) Registered as a guard dog under this chapter;
(2) Under the control of a person working as a law enforcement officer or commissioned security officer; or
(3) An assistance dog as defined under § 121.002 of the Texas Human Resources Code. Zoological park: Any permanent collection of living animals for public display, other than a pet shop or kennel, displaying or exhibiting one (1) or more species of animals.
Sec. 6-3. – Animal care and control section; animal care and control.
(a) The animal care and control section shall be a unit of the department of public health and shall be in the charge of a person having suitable qualifications and designated by the city as the animal care and control manager.
(b) In addition to the duties specifically prescribed in this chapter, it shall be the responsibility of the animal care and control manager to execute such other duties under the jurisdiction of the department of public health as the director may delegate
(c) The animal care and control manager shall manage the operation of the city animal care and control center.
Sec. 6-4. – Exemption of city officials from liability.
All of the regulations provided in this chapter and the functions and duties of all officers, agents, servants or employees of the city in the enforcement of this chapter are declared to be governmental and for the benefit, health and welfare of the general public. Any city official or employee charged with the enforcement of this article, acting for the city in the discharge of his/her duties, shall not thereby render himself/herself personally liable by the performance of any act required or permitted in the discharge of his/her duties.
(Ord. No. 10553, § 1, 3-27-90)
Sec. 6-5. – Violations; penalties.
(a) Any violation, disobedience, omission, neglect, failure or refusal to comply with the enforcement of any of the provisions of this chapter shall be punishable by a fine not to exceed two thousand dollars ($2,000.00) for each violation. Each day that a violation is permitted to exist shall constitute a separate offense.
(b) If any person is found guilty of having violated section 6-61 of this chapter, any license held by such person under this chapter shall be automatically revoked.
(Ord. No. 10553, § 1, 3-27-90)
Sec. 6-6. – Incorporation by reference.
Any reference made in this chapter to any other law, statute, code, ordinance, rule or regulation is intended to incorporate such material as it presently exists and also any future amendments, changes, revisions, repeals or recodifications of such material, unless otherwise expressly provided.
(Ord. No. 10553, § 1, 3-27-90)
Sec. 6-7. – Interference with animal [care and] control officer.
It shall be unlawful for any person to interfere with an animal [care and] control officer while engaged in the performance of his/her duties. A person interferes with an animal [care and] control officer if he/she:
(a) Releases or causes an animal to be released after an animal [care and] control officer has impounded the animal; or
(b) Physically constrains the movement of an animal [care and] control officer or his/her vehicle or equipment by:
(1) Placing any part of the person or person’s property in the way of the animal [care and] control officer’s progress in the performance of the officer’s duties; or
(2) Taking or moving an officer’s equipment which causes a time delay in the officer’s ability to use the equipment.
(Ord. No. 10553, § 1, 3-27-90)
Sec. 6-8. – Sanitary standards.
(a) The owner of any animal allowed by this chapter to be kept in the city shall comply with the following standards of sanitation for that animal:
(1) Remove manure and droppings from pens, stables, yards, cages and other enclosures and handle or dispose of the excretions in such manner as to keep the premises free of any nuisance.
(2) Place food only in impervious containers or on impervious surfaces.
(3) Equip watering troughs or tanks with adequate facilities for draining the overflow.
(4) Remove all refuse, as defined in Chapter 14 of the City Code, on the premises and dispose of same by a means approved by the city health officer.
(b) Such standards of sanitation shall be administered by the city health officer.
(Ord. No. 10553, § 1, 3-27-90)
Sec. 6-9. – Inspection of animals and premises.
The city public health department shall have the authority to inspect animals and/or premises. For purposes of discharging the duties imposed by the provisions of this chapter or other applicable laws, an animal [care and] control officer may enter upon private property to the full extent permitted by law.
(Ord. No. 10553, § 1, 3-27-90)
Sec. 6-10. – Noncomplying premises; remedies.
Where premises do not comply with the provisions of this chapter or if any health ordinance or law is not observed, the city health officer may, upon written notice to the person owning or controlling the premises, order the correction of the objectionable conditions. In addition to any criminal proceeding, failure to comply with such order shall entitle the city to obtain relief by injunction.
(Ord. No. 10553, § 1, 3-27-90)
Sec. 6-11. – Number of dogs and cats at residences.
(a) Except as provided by this section, no residence within the city shall house more than three (3) dogs and three (3) cats over the age of eight (8) weeks.
(b) A person may file an application for an administrative hearing for a permit to keep dogs and/or cats in excess of the number allowed in subsection (a). The applicant shall pay an application fee at the time of filing in an amount established by the city council.
(1) The application shall be filed with the animal care and control division of the health department on a form provided by the city health officer.
(2) At a minimum, the application form shall require the applicant’s name, address, and telephone numbers; the number, gender (including spay/neuter status), size, and species of dogs and cats currently housed at the address and their city registration numbers; the number of dogs and/or cats the applicant wants to keep at the address; and information on the type and size of the residence, the area where the animals will be kept, and the distance that such area is from abutting residences.
(3) The application form shall also contain forms and instructions for providing notice of the application and hearing to the occupants and/or owners of abutting residences. The applicant shall notify said persons no later than ten (10) days prior to the date set for the hearing.
(c) A hearing on the application will be conducted by the city health officer.
(1) At the hearing, the applicant shall have the burden of proof to establish that the applicant will be able to properly care for the number of dogs and/or cats requested, without the animals creating noise or odor nuisances or otherwise being detrimental to the public health.
(2) The applicant shall provide proof to the city health officer that all persons required to be notified of the application and hearing were served with notice either in person or by certified mail, return receipt requested.
(3) Each of the persons required to be notified of the application and hearing shall be given an opportunity to testify at the hearing either in favor of or in opposition to the application.
(d) At the conclusion of the hearing, the city health officer shall either approve the application, modify the application, or deny the application.
(e) The city health officer may deny the application if the applicant:
(1) Has not met the burden of proof established in (c)(1);
(2) Has within the preceding twenty-four (24) months been cited for violating this chapter, maintaining animal nuisance complaints, or been charged with violating state laws regulating the care of animals;
(3) Has not properly vaccinated and licensed all dogs and cats at the residence in accordance with this chapter; or
(4) Has not spayed/neutered all dogs and cats at the residence in excess of three (3) dogs and three (3) cats.
(f) If the city health officer determines that the applicant will not be able to care for the number of animals requested without the creation of noise or odor nuisances or without being otherwise detrimental to the public health, the city health officer may modify the application and approve the keeping of more than three (3) dogs and/or more than three (3) cats, but fewer than the number requested in the application.
(g) A permit issued under this section shall be valid for an open-ended term, but shall be subject to revocation for violation of its conditions. The permit shall specify the number of dogs and/or cats the permittee shall be able to keep, and shall not be specific to individual animals. The permit shall remain valid if the permittee moves and properly notifies the city health officer of the change of residence.
(h) A permit issued under this section is subject to the following conditions:
(1) A permittee shall notify the city health officer, in writing, prior to changing residences;
(2) A permittee shall keep all dogs and cats housed at permittee’s residence vaccinated and registered in accordance with this chapter;
(3) A permittee shall not keep more than three (3) dogs and/or three (3) cats which have not been spayed or neutered.
(4) A permittee shall not maintain any animal odor or noise nuisances at the residence;
(5) A permittee shall keep his/her dogs and/or cats under restraint at all times in accordance with this chapter;
(6) A permittee shall cooperate with the city should any of the animals be involved in a bite, and shall follow all rabies quarantine procedures as outlined by the Rabies Control Act, Title 25, Chapter 169 of the Texas Administrative Code, and this chapter. If the animal [care and] control authority determines that any of the permittee’s dogs is a dangerous dog, such determination shall subject the permit to revocation;
(7) A permittee shall comply with all applicable distance regulations for the keeping of animals under city code; and
(8) Any other reasonable conditions placed upon the permit by the city health officer.
(i) The city health officer may set a hearing if the city health officer determines that grounds exist to revoke a permit issued under this section.
(1) Written notice shall be served on the permittee in person or by registered mail at least ten (10) days prior to the hearing. The notice shall specify the date, time, and place of the hearing, as well as any allegations of permit condition violations.
(2) Notice that is mailed shall be deemed received five (5) days after it is placed in a mail receptacle of the United States Postal Service.
(3) No decision may be rendered at a hearing by reason of the permittee’s failure to appear unless proof of actual service is shown.
(4) A decision to revoke a permit shall be based on a preponderance of the evidence. The city shall have the burden of proof. At the conclusion of the hearing the city health officer shall make written findings of fact and conclusions of law and shall issue a written decision without undue delay.
(j) At application and revocation hearings, the following shall apply:
(1) The city health officer shall be empowered to administer oaths, to promulgate procedural rules for the conduct of the hearing and shall act as the hearing officer.
(2) A hearing under this section shall exhaust all administrative remedies of the applicant/permittee.
(3) Whenever any deadline specified in this section falls upon a Saturday, Sunday, or a city-recognized holiday, the deadline shall be the next regular city business day.
The keeping of any animal or bird which, by causing frequent or long-continued noise, shall disturb the comfort and repose of any person of ordinary sensibilities in the immediate vicinity is declared a nuisance in violation of this section. Whatever the city health officer determines to be dangerous to human life or health, or that is offensive to the senses, or that is or threatens to become detrimental to the public health, is hereby declared to be a nuisance and shall be unlawful, and the specific acts, conditions and things set forth in this chapter are, among others, declared to be nuisances and prohibited and made unlawful.
(a) If an animal is owned or purported to be owned by an individual who is younger than seventeen (17) years of age, responsibility and liability for compliance with this chapter with respect to such an animal shall be imposed on the parent, legal guardian, or other person who has the duty of control and reasonable discipline of the minor individual, regardless of whether the parent, legal guardian, or other person otherwise meets the definition of “owner” with respect to the animal at issue.
(b) Financial liability imposed under subsection (a) of this provision shall not exceed limits imposed by state law.
(c) It shall be an affirmative defense to imposition of responsibility and liability under subsection (a) that the parent, legal guardian, or other person establishes by a preponderance of the evidence that he or she made a reasonable good faith effort to ensure compliance with this chapter.
(Ord. No. 18028, § 1, 3-25-08)
Editor’s note— Ord. No. 18028, § 1, adopted March 25, 2008, amended the Code by adding provisions to Article I designated as § 6-121. At the discretion of the editor, said provisions have been codified herein as § 6-12.1 Sec. 6-13. – Restraint of animals.
(a) It shall be unlawful for an owner or person in control of an animal to fail to keep the animal in an adequate enclosure, which is one that complies with all of the requirements of this subsection.
(1) Subject to the further requirements of this subsection, an enclosure shall be an area that is completely surrounded by a substantial fence or other structure of sufficient strength, height, construction, materials, and design as to prevent any domestic animal from escaping from the area and to isolate the animal from the public and from other animals not under the control of the same owner.
(2) For all dogs, an enclosure shall have an outside-perimeter barrier that is a minimum height of forty-eight (48) inches when measured from the ground. For aggressive dogs, an enclosure shall have an outside-perimeter barrier that is a minimum height of seventy-two (72) inches when measured from the ground. Any portion of a building that is intended to form part of an enclosure must have a continuous wall (inclusive of windows and doors) that meets the applicable height requirement.
(3) All non-building portions of an enclosure, including gates, shall be constructed of chain link, welded wire, wrought iron, brick, mortared stone, concrete block, wood stockade, or other similar fencing-type material approved by the director.
(4) Where a building forms a part of an enclosure, there shall be minimal separation between the building and the remaining parts of the enclosure to prevent escape of the animal or animals intended to be contained.
(5) An enclosure shall be designed, erected, and maintained in accordance with all applicable zoning and building regulations of this Code.
(6) When not in use, all gates shall be closed and secured in a manner that prevents an animal from leaving the enclosure.
(7) Broken or damaged portions of an enclosure shall be repaired with like material and provide a seamless barrier that reasonably inhibits or prevents escape.
(8) If petitioned by an owner, the director may modify or waive the requirements of subsections (2), (3), and (7), provided that the director determines that proposed alternate measures will adequately contain the animal(s) in question. In considering a petition, the director may take into account factors that include, but are not limited to, zoning requirements, deed restrictions and covenants, and the size and physical characteristics of the animal or animals to be enclosed. The decision of the director shall be final and un-appealable
(b) It shall be unlawful for an owner to fail or refuse to exercise diligent care and control of his or her animal to prevent such animal from becoming a public nuisance.
(c) It shall be unlawful for a person having charge, care, or ownership of a cat to fail to keep the cat from roaming beyond the boundaries of the person’s premises.
(d) It shall be unlawful for a person to use a chain, rope, tether, leash, cable, or other device to attach a dog to a stationary object or trolley system.
(e) It is an affirmative defense to a violation of subsection (d) that the dog tethering:
(1) Is during a lawful animal event, veterinary treatment, grooming, training, or law enforcement activity;
(2) Is required to protect the safety or welfare of a person or the dog, and the dog’s owner maintains direct physical control of the dog;
(3) Occurs in the direct physical control of the owner in a designated city dog park; or
(4) Occurs on the owner’s premises and:
a. While the dog is within the owner’s direct physical control; and
b. Prevents the dog from advancing to within fifteen (15) feet of the edge of any public street.
(f) The affirmative defenses provided in subsection (e) are only available if the following specifications are met:
(1) The chain, rope, tether, leash, cable, or other device is attached to a properly fitted collar or harness worn by the dog;
(2) The chain, rope, tether, leash, cable, or other device is not placed directly around the dog’s neck;
(3) The chain, rope, tether, leash, cable, or other device does not exceed 1/20th of the dog’s body weight;
(4) The chain, rope, tether, leash, cable, or other device, by design and placement allows the dog a reasonable and unobstructed range of motion without entanglement, and
(5) The dog has access to adequate shelter and clean and wholesome water.
(g) It shall be unlawful for an owner or person in control of an animal to carry or transport the animal on any public roadway in an unenclosed vehicle (such as a pick-up or flatbed truck, jeep, or similar vehicle) unless the animal is:
(1) Contained in a closed, vented animal carrier that is secured in such a manner as to prevent the carrier from being thrown from the vehicle in the event of a collision; or
(2) Secured by a leash or other device that is cross-connected to prevent the animal from falling, jumping, or being thrown from the motor vehicle and from strangling on a single lead.
(h) A person commits an offense if the person fails to comply with this section.
(1) An offense under this section is a Class C misdemeanor. If a person fails to comply with this section with respect to more than one (1) dog, the person’s conduct with respect to each dog constitutes a separate offense.
(2) An offense under this section is punishable by a fine not to exceed two thousand dollars ($2,000.00).
(i) This section does not prohibit a person from walking a dog with a hand-held leash.
It is hereby declared to be a public nuisance that an owner or other person harbors, keeps, or maintains a dangerous animal other than a dog in the city unless the owner complies with the requirements of this article.
(Ord. No. 13537, § 1, 7-29-98)
Sec. 6-14. – Finding of an animal, other than a dog, as “dangerous.”
(a) A person learns that the person is the owner of a dangerous animal when:
(1) The owner knows of an attack as described in section 6-1, definition of “dangerous animal”; or
(2) The owner is informed by the animal [care and] control authority that the animal is a dangerous animal.
(b) If a person reports an incident described in section 6-1, definition of “dangerous animal,” the animal [care and] control authority may investigate the incident. If, after receiving the sworn statements of any witnesses, the animal [care and] control authority determines that the animal is a dangerous animal, it shall notify the owner of that fact.
(c) An owner, not later than the 15th day after the date the owner is notified that an animal owned by the owner is a dangerous animal, may appeal the determination of the animal [care and] control authority to municipal court. An owner may appeal the decision of municipal court in the same manner as other appeals from municipal court.
(Ord. No. 13537, § 1, 7-29-98)
Sec. 6-15. – Requirements for owner of dangerous animal other than a dog.
Not later than the thirtieth day after a person learns that the person is the owner of a dangerous animal, the person shall:
(1) Register the dangerous animal with the city animal [care and] control authority;
(2) Restrain the dangerous animal at all times on a leash in the immediate control of a person or in a secure enclosure as described in section 6-1, “Secure enclosure”;
(3) Further secure the dangerous animal with a muzzle in a manner that will not cause injury to the animal nor interfere with its vision or respiration but shall prevent it from biting any person or animal when the dangerous animal is taken off the property of the owner for any reason;
(4) Obtain liability insurance coverage or show financial responsibility in an amount of at least one hundred thousand dollars ($100,000.00) to cover damages resulting from an attack by the dangerous animal causing bodily injury to a person and provide proof of the required liability insurance coverage or financial responsibility to the city animal [care and] control authority;
(5) Provide the dangerous animal with a fluorescent yellow collar visible at fifty (50) feet in normal day light so that the animal can be identified;
(6) Spay or neuter the dangerous animal; and
(7) Microchip the dangerous animal for its life with a national registry, and present proof to the animal care and control manager. The owner of the dangerous animal shall microchip the animal by implanting a microchip identification device on the animal within seven (7) calendar days after being notified by the animal care and control manager or by the municipal court that such animal is dangerous. The cost of the service shall be at the owner’s expense.
Sec. 6-16. – Failure to comply with requirements .
If the owner of an animal determined to be dangerous under this article fails or refuses to comply with all the requirements specified in section 6-15, the animal shall be seized by the animal [care and] control authority and euthanized by the animal [care and] control authority or its authorized agent or a licensed veterinarian.
(Ord. No. 13537, § 1, 7-29-98)
Sec. 6-17. – Registration of a dangerous animal other than a dog.
(a) The city animal [care and] control authority shall annually register a dangerous animal if the owner presents proof of:
(1) Liability insurance or financial responsibility as required in section 6-15
(2) Current rabies vaccination of the dangerous animal if such vaccination is available for the species;
(3) The secure enclosure in which the animal will be kept; and
(4) Payment of an annual registration fee to the animal care and control division of (i) fifty dollars ($50.00) if the animal was declared dangerous as the result of an incident that occurred before September 1, 2009, or (ii) five hundred dollars ($500.00) if the animal was declared dangerous as the result of an incident that occurred on or after September 1, 2009.
(b) The animal [care and] control authority shall provide to the owner registering a dangerous animal a registration tag. The owner must place and maintain the tag on the animal’s collar.
(c) The owner of a dangerous animal shall notify the animal [care and] control authority within twenty-four (24) hours if the dangerous animal is at large, unconfined, has attacked a human being or another animal, has died, or has been sold or given away. If the animal has been sold or given away, the former owner shall provide the animal [care and] control office with the name, address, and telephone number of the new owner. If the new owner’s address is in the city or if the animal is kept in the city, the animal [care and] control authority shall notify the new owner by certified mail, return receipt requested, or in person that the animal has been determined to be a dangerous animal and provide the new owner a copy of the requirements contained in Article III. The new owner must be given notice to comply with the requirements for owners of dangerous animals, if the animal is physically located for any time within the city. It shall be unlawful for new owners to fail to comply with any requirement of sections 6-15 and 6-16. The same reporting requirements are imposed on any and all subsequent owners of the dangerous animal.
Sec. 6-18. – Attack by dangerous animal other than a dog.
(a) A person commits an offense if the person is the owner of a dangerous animal other than a dog and the animal makes an unprovoked attack on a person or another animal outside the animal’s enclosure and causes bodily damage to the person or other animal.
(b) An offense under this section is a class C misdemeanor, unless the attack causes serious bodily injury or death, in which event the offense is a Class A misdemeanor.
(c) If a person is found guilty of an offense under this section, the court may order the dangerous animal destroyed by an animal [care and] control authority or licensed veterinarian.
(d) In addition to criminal prosecution, a person who commits an offense under this section is liable for a civil penalty not to exceed ten thousand dollars ($10,000.00). The city attorney may file suit in a court of competent jurisdiction to collect the penalty. Penalties collected under this subsection shall be retained by the city.
(Ord. No. 13537, § 1, 7-29-98)
Sec. 6-19. – Violations.
(a) A person who owns or keeps custody or control of a dangerous animal commits an offense if the person fails to comply with section 6-15
(b) Violation of any section under this division is punishable by a fine not to exceed two thousand dollars ($2,000.00).
(Ord. No. 13537, § 1, 7-29-98)
Sec. 6-20. – Defense.
It is a defense to prosecution under section 6-18 or section 6-19 that the person is a veterinarian, a peace officer, a person employed by a recognized animal shelter or person employed by the state or a political subdivision of the state to deal with stray animals, and that the person has temporary ownership, custody or control of the animal; provided, however, that for any person to claim under this section, that person must be acting within the course and scope of his or her official duties as regards to the dangerous animal.
It is hereby declared to be a public nuisance that an owner or other person harbors, keeps, or maintains a dangerous dog in the city unless the owner complies with the requirements of this article and state statutes regulating dangerous dogs. It is hereby declared to be a public nuisance that an owner or other person harbors, keeps, or maintains in the city or brings to the city a dog that has been declared dangerous outside of the city under one (1) or more of the following: (i) Chapter 822 of the Texas Health and Safety Code; (ii) a local law or ordinance adopted in accordance with Chapter 822; or (iii) a statute or ordinance that is substantially similar to Chapter 822 and that was adopted by a political subdivision outside of the State of Texas.
A dangerous dog incident means an incident in which the dog:
(1) Makes an unprovoked attack on a person or other animal that causes bodily injury and occurs in a place other than an enclosure in which the dog is being kept and that was reasonably certain to prevent the dog from leaving the enclosure on its own; or
(2) Commits unprovoked acts in a place other than an enclosure in which the dog was being kept and that was reasonably certain to prevent the dog from leaving the enclosure on its own and those acts cause a person to reasonably believe that the dog will attack and cause bodily injury to that person.
(Ord. No. 17831, § 1, 10-98-07)
Sec. 6-20.3. – Dangerous dog investigation.
The animal care and control authority or his or her designee may investigate all reports of dangerous dog incidents. The animal care and control authority may accept sworn statements from all victims and witnesses to the attack.
(Ord. No. 17831, § 1, 10-98-07)
Sec. 6-20.4. – Reporting of incident.
(a) A person may report an incident described in section 6-20.2 of the City Code to the animal care and control authority.
(b) The animal care and control authority shall provide a sworn report describing the dangerous dog incident to the city prosecutor’s office.
(c) The city prosecutor’s office shall evaluate the case and determine whether to file a dangerous dog incident report with the municipal court (court). If such a report is filed, the court shall order the animal care and control authority or his designee to seize the dog and the court shall issue a warrant authorizing the seizure. The animal care and control authority shall seize the dog and shall provide for the impoundment of the dog in secure and humane conditions until the court determines one (1) of the following:
(1) That the dog is not a dangerous dog pursuant to section 6-20.5 of the Code;
(2) That the dog is a dangerous dog and the court or animal care and control authority finds the owner has complied with the ownership of a dangerous dog pursuant to section 6-20.7; or
(3) That the dog should be humanely destroyed or is deceased.
(d) The animal care and control authority shall furnish written notice to the owner of the dog identified in the report to inform the owner that a dangerous dog report has been filed with the court. Notice shall be by hand delivery to the owner of the dog. If the owner cannot be located, notice shall be delivered to any adult at the dog owner’s last known physical address or to any adult at the residence where the dog is believed to be kept, if at a location different than the owner’s physical address. The notice shall also include a statement that the owner will be notified by the court of the date and time for a hearing pursuant to section 6-20.5
(e) If the court determines the dog to be a dangerous dog, the owner shall pay all costs and or fees assessed by the municipality related to the seizure and impoundment of the dog, including, but not limited to, boarding fees, microchip procedure, city license and rabies vaccination, and the cost of euthanasia of the dog if ordered by the court.
(Ord. No. 17831, § 1, 10-98-07)
Sec. 6-20.5. – Hearing for dangerous dog determination.
(a) The court, on receiving a report of an incident under section 6-20.4 shall set a time for a hearing to determine whether the dog is a dangerous dog. The hearing must be held not later than the tenth day after the date on which the dog is seized or delivered.
(b) The court shall give written notice of the time and place of the hearing to:
(1) The owner of the dog or the person from whom the dog was seized;
(2) The person who made the complaint; and
(3) Any witnesses.
(c) Any interested party, including the city attorney, is entitled to present evidence at the hearing.
(d) The court shall issue its ruling within twenty-four (24) hours from the conclusion of the hearing.
(e) Appeals from convictions under this statute shall be handled like other appeals from convictions in municipal court.
(Ord. No. 17831, § 1, 10-98-07)
Sec. 6-20.6. – Failure to surrender dog
It shall be a separate violation of this division for any person to refuse or fail to surrender a dog subject to this article, or harbor, hide or secret, transport or secure the transport of a dog subject to this article, for the purpose of preventing its impoundment.
(Ord. No. 17831, § 1, 10-98-07)
Sec. 6-20.7. – Requirements for owners of a dangerous dog.
(a) Not later than the fifteenth day after a person learns that the person is the owner of a dangerous dog, the person shall:
(1) Register the dangerous dog with the animal control authority and pay an annual registration fee of (i) fifty dollars ($50.00) if the animal was declared dangerous as the result of an incident that occurred before September 1, 2009, or (ii) five hundred dollars ($500.00) if the animal was declared dangerous as the result of an incident that occurred on or after September 1, 2009;
(2) Restrain the dangerous dog at all times on a leash in the immediate control of a person or in a secure enclosure as defined in section 6-1 with the requirement that the enclosure be posted with signs on all sides in four-inch letters warning of the presence of dangerous dogs and shall include a symbol of dangerous dogs understandable by young children;
(3) Obtain and maintain liability insurance coverage or show financial responsibility in an amount of at least one hundred thousand dollars ($100,000.00) to cover damages resulting from an attack by the dangerous dog causing bodily injury to a person and provide proof of the required liability insurance coverage or financial responsibility to the animal care and control authority.
(4) Secure the dangerous dog with a muzzle in a manner that will not cause injury to the dog nor interfere with its vision or respiration but shall prevent it from biting any person or animal when the dangerous dog is taken off the property of the owner for any reason;
(5) Provide the dangerous dog with a fluorescent yellow collar to be worn by the dog at all times and to be visible at fifty (50) feet in normal day light so that the dog can be identified;
(6) Spay or neuter the dangerous dog; and
(7) The animal care and control authority shall implant a microchip identification device on the dog immediately after the court has ruled in a hearing pursuant to section 6-20.5 that such dog is dangerous. The dog’s microchip shall be registered with a national registry. The cost of the service shall be at the owner’s expense.
(b) The court, after determining that the dog is a dangerous dog, shall order the animal care and control authority to continue to impound the dangerous dog in secure and humane conditions until such time as:
(1) The court orders disposition of the dog and the dog is returned to the owner,
(2) The court orders disposition of the dog and the dog is thereby humanely destroyed, or
(3) The dog is deceased.
(c) The court shall order the animal care and control authority to humanely destroy the dog if the court determines after notice and hearing that the owner has not complied with subsection (a). The court shall order the authority to return the dog to the owner if the owner has fully complied with subsection (a) either after a hearing or without a hearing based on the recommendation of the animal care and control authority that the owner has complied with subsection (a).
(d) The owner may appeal the decision of the court by following the appropriate procedures for appeal of a decision of municipal court.
During the appeal period, the dog shall remain in the custody, care and control of the animal care and control authority.
If the appeal is ultimately unsuccessful, the owner of the dog shall be responsible for the dog’s impoundment fees during the period the case was being appealed.
(e) Animal care and control may, at their option, request the owner of a dangerous dog to show proof, on a quarterly basis, of compliance with this division. If animal care and control determines that the owner of a dangerous dog has failed to comply with any requirement listed in subsection (a) above, animal care and control Authority shall issue notice of non-compliance to the owner of the dangerous dog and said owner shall deliver the dog immediately to the animal care and control authority.
(f) If animal care and control is not in receipt of the dog within forty-eight (48) hours after delivery of the notice, then the court shall order the animal care and control authority or his designee to seize the dog and the court shall issue a warrant authorizing the seizure. The animal care and control authority shall seize the dog and shall provide for the impoundment of the dog in secure and humane conditions. After the expiration of three (3) days, if the owner of the dangerous dog has not sufficiently presented proof to the animal care and control authority that he or she is in compliance with subsection (a), the animal care and control authority shall refer the case to the municipal court for notice and hearing.
(g) Upon proof to the court of the dangerous dog owner’s non-compliance, the court shall enter, no later than the day of the hearing, a final order for the humane destruction of the dog.
(h) The owner shall pay all costs and or fees assessed by the municipality related to the seizure and impoundment of the dog, including, but not limited to, boarding fees, microchip procedure, city license and rabies vaccination, and the cost of euthanasia of the dog if ordered by the court.
(a) The owner of a dangerous dog shall notify the animal care and control authority within twenty-four (24) hours if the dangerous dog is at large, unconfined, has attacked a human being or another animal, has died, or has been sold or given away.
(b) If an owner of a registered dangerous dog sells or moves the dog to a new address, that owner, not later than the fourteenth day after the date of the sale or move, shall notify the animal control authority for the area in which the new address is located. Upon selling or moving the registered dangerous dog, that owner must notify the new owner or person who has care and control of the dog that he or she is keeping or owning a dog that has been declared dangerous. On presentation by the new owner of the dangerous dog’s prior registration tag and payment of a fee of twenty-five dollars ($25.00), the animal control authority shall issue a new registration tag to be placed on the dangerous dog’s collar.
(c) The owner of a registered dangerous dog shall notify the office in which the dangerous dog was registered of any attacks the dangerous dog makes on people or other animals.
(Ord. No. 17831, § 1, 10-98-07)
Sec. 6-20.9. – Defenses.
(a) It is a defense to prosecution under this division that the person is a veterinarian, a peace officer, a person employed by a recognized animal shelter or person employed by the state or a political subdivision of the state to deal with stray animals and has temporary ownership, custody or control of the dog; provided, however, that for any person to claim a defense under this section, that person must be acting within the course and scope of his or her official duties with regard to the dangerous dog.
(b) It is a defense to prosecution under this division that the person is an employee of the institutional division of the Texas Department of Criminal Justice or of a law enforcement agency and trains or uses dogs for law enforcement or corrections purposes; provided, however, that for any person to claim a defense under this section, that person must be acting within the course and scope of his or her official duties with regard to the dangerous dog.
(c) It is a defense to prosecution under this division that the dog at issue is a trained guard dog in the performance of official duties while confined or under the control of its handler.
(Ord. No. 17831, § 1, 10-98-07)
Sec. 6-20.10 – Violations.
(a) A person who owns or keeps custody or control of a dangerous dog commits an offense if the person fails to comply with any section of this division;
(b) An offense under this section is punishable by a fine not to exceed two thousand dollars ($2,000.00).
(Ord. No. 17831, § 1, 10-98-07) Sec. 6-21. – Purpose.
The purpose of this article is to promote the licensing and vaccination against rabies of all dogs and cats within the city, and to facilitate that purpose through the use of a combined license/rabies tag. Pursuant to V.T.C.A., Health and Safety Code section 826.031(c), the license fees provided for herein and collected by the city shall be used only to defray the city’s costs of administering the Texas Rabies Control Act and the city’s ordinances relating to the restraint, impoundment, licensing and vaccination of dogs and cats, and the quarantining and testing of animals for rabies.
(Ord. No. 11464, § 1, 12-7-93)
Sec. 6-22. – License required.
(1) A person commits an offense if the person owns, keeps, harbors, or has custody of any dog or cat over four (4) months of age without having such dog or cat currently licensed by the city.
(2) A person commits an offense if he owns a dog or cat required to be licensed by this section and fails to display on such dog or cat at all times a valid city combined license/rabies tag.
(3) A person commits an offense if he owns a dog or cat and displays on such dog or cat a combined city license/rabies tag issued to another animal.
(1) It is a defense to a prosecution under subsections (a)(1) and (a)(2) above that the animal was owned, kept or harbored by, or in the custody of, an animal establishment or releasing agency, was kept under restraint on the premises of the animal establishment or releasing agency, and was being offered for sale or adoption.
(2) It is a defense to prosecution under subsections (a)(1) and (a)(2) above that the person who owned the animal was not a permanent resident of the city and was keeping the animal within the city for less than sixty (60) days.
(3) It is a defense to prosecution under subsections (a)(1) and (a)(2) above that at the time of the offense the person was using the animal in a research program at an institution of higher education which is accredited by the American Association for the Accreditation of Laboratory Animal Care.
(1) A person commits an offense if the person owns, keeps, harbors, or has custody of any female dog or cat over six (6) months of age or of any male dog or cat over eight (8) months of age that is unaltered unless such person has a valid intact pet permit issued in accordance with this section.
(2) A person commits an offense if the person owns, harbors, or has custody of an unaltered dog or cat and fails to display on such dog or cat at all times a valid city combined license/rabies tag indicating that the animal is subject to an unaltered pet permit.
(3) A person commits an offense if the person owns, harbors, or has custody of a dog or cat and displays on such animal a tag indicating that the animal is subject to an unaltered pet permit issued to another person.
(4) A person commits an offense if the person owns, harbors, or has custody of an intact animal at the residence or business property of an individual who has had a permit revoked under subsection (e), regardless of whether another person at the same property holds a valid permit.
(5) A person commits an offense if the person advertises for sale within the City or Fort Worth an unaltered dog or cat and fails to include in such advertisement the identification number of the owner’s city-issued intact pet permit.
(1) An application for an intact pet permit must be made on the form prescribed by the director and shall include the following information:
a. The name, telephone number, and physical address of the applicant;
b. The total number of animals sought to be included under the permit and the species, breed, gender, and age of each animal;
c. The current, valid city license number for each animal listed in the application.;
d. A statement affirming that the applicant is familiar with the provisions of this chapter and a promise to maintain all animals in accordance with applicable legal requirements.
(2) An application must be accompanied by either: (i) payment of an application fee in the amount adopted annually by the city council or (ii) documentation evidencing that the applicant has completed a responsible-pet-owner class approved by the director. This application fee shall be in addition to all other applicable license and registration fees required under this chapter. An application fee is not refundable.
(3) An application must be accompanied by photographic evidence, in digital or printed form, showing the enclosure or enclosures where the unaltered animals are to be kept.
(4) The animal care and control division may require such additional information and documentation deemed necessary to determine whether to issue the permit.
(c) Consideration of application.
(1) An application for permit may be denied if the applicant:
a. Fails or refuses to submit a complete application;
b. Fails or refuses to submit any information or supporting documentation required under this section or pursuant to a request of the animal care and control division;
c. Fails or refuses to submit the fee or documentation required under subsection (b)(2);
d. Provides false information on or in connection with the application;
e. Has, within the preceding twenty-four (24) months, been convicted, received deferred adjudication, or pleaded guilty or no contest with respect to one (1) or more violations of this chapter, of any state law relating to the care and humane treatment of animals, or both;
f. Has, within the preceding twenty-four (24) months failed to appear in court to respond to a citation relating to an alleged violation of any provision of this chapter or of any state law relating to the care and humane treatment of animals;
g. Has, within the preceding sixty (60) months, been convicted, received deferred adjudication, or pleaded guilty or no contest with respect to one (1) or more violations of any provision of this chapter or of any state law relating to animal cruelty;
h. Has previously had a permit revoked pursuant to subsection (e); or
i. Resides at the same physical address as another individual whose permit has been revoked pursuant to subsection (e).
(2) Notwithstanding subsection (c)(1), an application for permit may also be denied if the animal care and control division determines that specific circumstances exist indicating that issuance of the permit would not be in the best interest of the animals involved or of the health and safety of the public. If a permit is denied pursuant to this subsection, the animal care and control division shall issue a written statement citing the specific reason or reasons for the denial.
(3) If a permit application is denied by the animal care and control division, the applicant may appeal to the director. Such appeal must be made in writing and received within thirty (30) days of the date the application was originally rejected. The decision of the director shall be final and un-appealable.
(d) Issuance and maintenance of permit.
(1) A permit is issued to an individual owner. A permit is not transferable to another person.
(2) A permit is valid unless and until revoked.
(3) To maintain a permit, the permit holder must keep the animal care and control division apprised of current contact information for holder and identifying, licensing, and registration information for all animals included under a permit. In particular, a permit holder must notify the animal care and control division of any change of address or telephone number no later ninety (90) days after the new address or phone number is effective. In addition, within ninety (90) days of obtaining an animal that was not included in the original permit application, the permit holder must provide the animal control division with the species, breed, gender, age, and current, valid city license number of each such animal.
(e) Revocation of permit.
(1) The animal care and control division may revoke a permit if the holder:
a. Is convicted, receives deferred adjudication, or pleads guilty or no contest with respect to one (1) or more violation of this chapter, of any state law relating to the care and humane treatment of animals, or both;
b. Fails to appear in court to respond to a citation relating to an alleged violation of any provision of this chapter or of any state law relating to the care and humane treatment of animals;
c. Is convicted, receives deferred adjudication, or pleads guilty or no contest with respect to a single violation of any provision of this chapter or of any state law relating to animal cruelty;
d. Is discovered to have provided false or inaccurate information on or in connection with the original permit application;
e. Fails to license or vaccinate any animal in accordance with the requirements of state law and this chapter; or
f. Fails to comply with the requirements of subsection (d)(3).
(2) If a permit is revoked by the animal care and control division, the applicant may appeal to the director. Such appeal must be made in writing and received within thirty (30) days of the date the application was originally rejected. The director may: (i) reinstate the permit pursuant to its original terms, (ii) reinstate the permit subject to the holder meeting additional specified conditions, or (iii) affirm the revocation. The decision of the director shall be final and un-appealable.
(1) It is a defense to a prosecution under subsection (a)(1) or (a)(2) if an owner produces a signed, written opinion from a licensed veterinarian that the animal in question should not be spayed or neutered due to health concerns.
(2) It is a defense to a prosecution under subsection (a)(1) or (a)(2) that the animal was owned, kept or harbored by, or in the custody of, an animal establishment or releasing agency, was kept under restraint on the premises of the animal establishment or releasing agency, and was being offered for sale or adoption.
(3) It is a defense to prosecution under subsection (a)(1) or (a)(2) that the person who owned the animal was not a permanent resident of the city and was keeping the animal within the city for less than sixty (60) days.
(4) It is a defense to prosecution under subsection (a)(1) or (a)(2) above that, at the time of the offense, the person was using the animal in a research program at an institution of higher education that is accredited by the American Association for the Accreditation of Laboratory Animal Care.
(Ord. No. 18751-08-2009, § 7, 8-11-09)
Sec. 6-23. – License application; fee.
(a) Written application for a license and payment of the applicable license fee shall be made to the animal care and control division, to the Humane Society of North Texas, or to a designated veterinarian.
(b) The application shall include the name and address of the applicant, a description of the animal, and a current rabies certificate issued by a veterinarian licensed to practice in the jurisdiction in which the animal was vaccinated.
(c) A new owner of a dog or cat over four (4) months of age shall apply for a license within thirty (30) days of acquiring the dog or cat.
(d) Upon acceptance of a license application, a City of Fort Worth combined license/rabies tag shall be issued, which shall bear an identifying number for the animal and the year of issuance. The animal care and control division is authorized to have the name, address, and phone number of the issuing designated veterinarian or Humane Society of North Texas imprinted on one (1) side of the tag.
(e) The city council shall adopt a schedule of license fees applicable to this article, which shall be available for review at the animal care and control division. The schedule of fees may include late fees relating to licenses, registrations, or other actions required under this article that are not accomplished voluntarily and within the time limits prescribed; such fees shall serve to off-set costs associated with staff time required to bring about compliance. Upon proof pursuant to section 6-62, presented to the animal care and control division, no fee shall be charged for animals trained and certified by recognized professional authorities as assistance or service animals. The director may, in his or her discretion, periodically reduce the license fees adopted by the city council in order to encourage adoption in conjunction with special events.
(f) Unless sooner revoked, licenses shall be valid for their period of issuance in accordance with this subsection. Licenses for animals that are implanted with a microchip currently registered with a national animal-identification database may be issued for a period of up to three (3) years, provided that the animal in question has been immunized against rabies with a vaccine that is effective for the entire three-year period. Licenses for animals that are not implanted with a microchip currently registered with a national animal-identification database may be issued for a period of up to one (1) year, provided that the animal in question has been immunized against rabies with a vaccine that is effective for the entire one-year period. Under no circumstances shall a license be issued for a period that extends beyond the time period for which the animal’s most recent rabies vaccination remains in effect.
(g) Permanent city registration tags shall no longer be issued. A permanent registration tag issued prior to [January 1, 1994,] the effective date of this article shall remain valid for the lifetime of the animal for which it was issued as long as compliance with this subsection is maintained. The animal’s owner must have the animal timely vaccinated against rabies annually and provide a copy of the rabies certificate to animal [care and] control. Failure to do so shall render the registration void.
(h) A license is not transferable between animals or between owners. All portions of section 6-23, “License application; fee,” not specifically amended shall remain in effect.
(a) The animal care and control manager may revoke any license issued for a dog or cat pursuant to this article under the following circumstances:
(1) A person has withheld, falsified, or provided incorrect information on the license application.
(2) A person has been convicted within the preceding sixty (60) months of cruelty to any animal under any animal cruelty law of this state or other jurisdiction in the United States.
(3) A person’s payment for the license in draft form has been dishonored.
(b) Written notification of revocation shall be accomplished by depositing a certified letter, return receipt requested, in the United States mail and addressed to the last known address of the person to whom the license was issued.
(c) Any person whose license for a dog or cat is revoked may, within fifteen (15) days from the date the letter in subsection (b) above was deposited in the mail, make a showing of compliance or correction to the animal care and control manager and have the license reinstated. If a person fails to provide satisfactory proof of compliance or correction to the animal care and control manager within the fifteen (15) days, the owner must immediately surrender the license tag or permanent registration tag for that animal to the animal care and control manager.
(d) A license revoked pursuant to subsections (a)(1) or (a)(2) above may be reinstated upon a correct application being made by the owner in compliance with section 6-22. No person whose license has been revoked under subsection (a)(2) above may reapply for a period of sixty (60) months from the date of his cruelty to animals or animal cruelty law conviction.
(e) When a license is revoked, no licensing fees shall be refunded.
(f) When a license is revoked, the animal’s owner shall immediately surrender to the animal [care and] control administrator the combined license/rabies tag or permanent registration tag, as applicable, for that animal.
(g) A person commits an offense if he knowingly fails to surrender a revoked combined license/rabies tag or permanent registration tag to the animal care and control manager or his designee.
(h) The animal care and control manager or his designee is authorized to immediately seize any revoked city license/rabies tag which comes to his attention.
Sec. 6-25. – Collection of license fees and issuance of tags by designated veterinarians.
(a) A veterinarian who is licensed by the State of Texas, located within or outside of the city, and who treats dogs and cats which are maintained within the city, may apply annually with the animal care and control manager to become a designated veterinarian.
(b) The veterinarian designation application shall be on a form prescribed by the animal care and control manager, shall be signed by the veterinarian applying for designation, and shall have the force and effect of a contract. The agreement shall be valid only for the calendar year and shall expire on December 31st.
(c) A designated veterinarian shall be authorized to issue a city combined license/rabies tag to the owner of a dog or cat upon presentation by the owner to the veterinarian of a current rabies certificate for the animal to be licensed.
(d) A designated veterinarian shall collect the license fee for each animal issued a license by the veterinarian. A designated veterinarian shall not charge an animal’s owner a price which is greater than or less than the current annual fee. A designated veterinarian assumes full responsibility for ensuring that full payment is made to the city for each combined license/rabies tag issued. In payment for his/her services, the veterinarian may keep a service fee in the amount established by the city council.
(e) A designated veterinarian shall submit to the animal care and control manager the rabies vaccination information required by section 6-41(e) of this article.
(f) License fees collected by a veterinarian shall be paid to the city no later than the sixth (6th) day of the month following the month in which the fees were collected.
(g) A designated veterinarian shall be responsible for the proper handling of all combined license/rabies tags issued to him by animal [care and] control, and shall be responsible for contacting animal [care and] control to receive additional tags prior to his supply running out.
(h) Any designated veterinarian who fails to comply with the established procedures and requirements for the collection and timely payment of license fees to the city shall be deemed to be in violation of the agreement and shall forfeit his designation to participate in license issuance.
The animal care and control manager shall provide the designated veterinarian(s) with necessary monthly report forms and combined license/rabies tags. The animal care and control manager shall establish a collection procedure for the fees, a format for the tags and shall record the number of dogs and cats registered, name of owner, and other appropriate information. The animal care and control manager also reserves the right to inspect at reasonable times the license records, rabies vaccination records, and tags on hand at a designated veterinarian’s office.
(a) A person who violates a provision of this article shall upon conviction be deemed guilty of a misdemeanor, and shall be fined a sum not to exceed two thousand dollars ($2,000.00) for each offense. However, a violation of section 6-22(a)(1) is subject to a penalty not to exceed five hundred dollars ($500.00), pursuant to the Texas Rabies Control Act.
(b) Each day that a violation continues shall constitute a separate offense.
(Ord. No. 11464, § 1, 12-7-93)
Secs. 6-28—6-40. – Reserved.
Sec. 6-41. – Rabies vaccination.
(a) Vaccine required.
(1) A person commits an offense if the person owns, keeps, harbors or has custody of a dog or cat over four (4) months of age that has not been immunized against rabies by injection of anti-rabies vaccine by a veterinarian validly licensed in Texas or in another jurisdiction.
(2) The same animal must receive a booster within the twelve (12) month interval following the animal’s initial vaccination.
(3) The same animal must be revaccinated against rabies at a minimum of at least once every three (3) years by a rabies vaccine licensed by the department of agriculture.
(4) In the prosecution of this subsection, it is an exception that the dog or cat was kept, harbored or in the custody of an animal shelter.
(b) Every owner of a dog or cat immunized against rabies shall procure a rabies vaccination certificate from the veterinarian administering the vaccine.
(c) The provisions restricting the use and sale of rabies vaccine for animals as set forth in the state statute enacting the “Rabies Control Act of 1981” are hereby adopted by reference, as contained in Chapter 826 of the Health and Safety Code, V.T.C.S., a copy of which is on file in the office of the city secretary, and as amended from time to time.
(d) It shall be unlawful for a person to administer, sell, or distribute rabies vaccine for animals in a manner not authorized by section 6-41(c).
(e) Every veterinarian whose office or place of business is located within the city and every designated veterinarian, whose office or place of business is located within or outside the city, shall keep detailed records of animal rabies vaccination and, upon request of the director of health, shall provide a listing of rabies vaccinations to the animal care and control section. The listing shall include the owner’s name and address, animal species, gender, date of vaccination and whether or not the animal has been altered.
Sec. 6-42. – Domestic animals that exhibit rabies symptoms or reasonably indicate rabies symptoms.
(a) When a domestic dog, cat or ferret which has rabies or symptoms which could reasonably indicate rabies, or that bites, scratches or otherwise creates a condition which may expose or transmit to any human being or animal shall be immediately impounded as provided in section 6-43 and shall be held in quarantine in the city a minimum period of ten (10) days for a dog, cat or domestic ferret from the date of the bite, scratch or when the condition which may have exposed or transmitted the rabies virus to a human being occurred, or longer as the local rabies control authority may deem necessary. Such quarantine will be subject to the following conditions:
(1) An unvaccinated dog, cat or domestic ferret should not be vaccinated against rabies during the ten-day observation period.
(2) The animals must be observed twice daily for rabies symptoms during the observation period.
(3) If an animal [care and] control officer is able to notify the owner of the subject animal, the owner may exercise the option to quarantine the subject animal within twenty-four (24) hours of notification and with the approval of the local rabies control authority, in a Texas Department of Health approved facility including a licensed veterinarian’s clinic in the city which has the facilities for isolation cages, the animal care and control center, other approved sites designated and approved by the local rabies control authority or in a home quarantine as provided in subsection (b).
(b) Home quarantine.
(1) The owner or custodian of the dog, cat or ferret may request permission from the local rabies control authority to place the animal in home quarantine if the following criteria can be met:
(A) Secure facilities must be available at the home of the animal’s owner or custodian, and must be approved by the local rabies control authority;
(B) The animal is currently vaccinated against rabies;
(C) The animal was wearing a current vaccination and license tag at the time of the incident;
(D) The animal bit person who lives at the same residence as the animal; and
(E) The animal has not been quarantined for a previous bite incident.
(2) The local rabies authority or a licensed veterinarian must observe the dog, cat or domestic ferret at least on the first and eighth day of the quarantine period and only a licensed veterinarian must observe the animal on the tenth day of the quarantine period. If the owner chooses that the local rabies control authority observe the animal on the first and eighth day for a dog, cat or domestic ferret, a fee will be charged by the animal care and control division according to a fee schedule approved by city council. If the animal becomes ill during the quarantine period, the person which has possession of the animal must notify the local rabies control authority immediately.
(3) At the end of the quarantine period, the animal shall only be released from quarantine by a letter written by a licensed veterinarian authorizing release.
(c) If the animal, whether owned or unowned, is a high risk animal, which bit, scratched or created a condition which may have exposed or transmitted the rabies virus to a human being or another animal it shall be euthanized and its head submitted to the Texas Department of Health laboratory for rabies diagnosis.
(d) If the animal is a low risk animal, which was cage-raised, which bit, scratched or created a condition which may have exposed or transmitted the rabies virus to a human being neither quarantine nor rabies test will be required unless the local rabies control authority has cause to believe the animal is rabid, in which case it should be humanely killed and tested for rabies.
(e) A domestic animal which has bitten a human and has been designated by the local rabies control authority as unclaimed may be humanely killed in such a manner that the brain is not mutilated. The head shall be submitted to the Texas State Department of Health laboratory for rabies diagnosis.
(f) The local rabies control authority may require an animal which has inflicted multiple bite wounds, punctures, or lacerations to the face, head, or neck of a human being to be humanely killed and its head submitted to the Texas Department of Health laboratory for rabies diagnosis.
(g) Any animal required to be quarantined under this section which in the determination of the local rabies control authority cannot be or is not being maintained in a secure quarantine, shall be humanely killed and its head submitted to the Texas Department of Health laboratory for rabies diagnosis.
(h) If the animal is not included in subsection (a), (c), (d), (e) or (f) of this section, the biting animal will be humanly killed and the brain tested for rabies or the local rabies control authority may require the animal to be confined for a thirty-day observation period at a licensed veterinarian’s animal clinic or the animal care and control center. Home quarantine described in subsection (b) does not apply in this subsection
(i) The owner of any animal that is reported to have rabies or symptoms thereof, or to have been exposed to rabies, or to have bitten, scratched or otherwise created a condition which may have exposed or transmitted the rabies virus to any human being or animal, or that the owner knows or suspects to be rabid or to have bitten, scratched or otherwise created a condition which may have exposed or transmitted the rabies virus to any human being or animal, shall submit such animal for quarantine to the local rabies control authority or any police officer. If the animal dies prior to its quarantine, the owner shall submit the animal to the animal care and control center for rabies diagnosis.
(j) Any person who has knowledge of any animal that exhibits symptoms of, or has been exposed to rabies, or of any animal which has bitten, scratched or otherwise created a condition which may have exposed or transmitted the rabies virus to any human being or animal, shall immediately report the incident to the local rabies control authority. The report shall include the name and address of the victim and owner of the animal, if known, and any other information he/she has relating to the incident or animal.
(k) Every veterinarian or other person who is called to examine or professionally attend any animal with rabies or any other reportable communicable disease shall within twenty-four (24) hours thereafter, report the following in writing to the local rabies control authority:
(1) Species and description of the animal;
(2) Location of such animal;
(3) Name and address of the owner thereof;
(4) Type and character of the disease.
(l) The local rabies control authority shall investigate and record all cases of rabies and suspected rabies.
(m) The body of any animal that has died of rabies or that dies or is destroyed while in quarantine shall not be disposed of except as directed by the local rabies control authority.
(n) The owner of any animal quarantined under this section shall pay all reasonable costs of the quarantine and disposition of the animal, including charges for shipment of animal tissues, if required, to the Texas Department of Health laboratory for testing.
(o) An animal which has been quarantined may be released by the local rabies control authority under the following conditions:
(1) At the end of the observation period upon a written release from a licensed veterinarian and proof of vaccination or receipt of vaccination prior to release from quarantine;
(2) When all applicable fees have been paid;
(3) If the animal is not being held for legal proceedings; and
(4) If appropriate city license registration has been obtained.
(p) It shall be unlawful for the owner of an animal that has rabies or symptoms which could reasonably indicate rabies, or that bites, scratches, or otherwise creates a condition which may expose or transmit the rabies virus to any human being or other animal to fail or refuse to comply with any provisions of this article.
(q) Currently vaccinated guide dogs in service or currently vaccinated police dogs when a bite is inflicted in the line of duty shall not be required to be placed in quarantine.
(a) Animals may be impounded by the animal care and control manager under any of the following circumstances when:
(1) An animal, other than a cat, is at large. Effective January 1, 1997, the animal care and control manager shall be further authorized to impound any cat which is at large;
(2) A dog, cat, ferret or miniature swine does not wear or have a valid city license tag affixed to its collar and said animal is not being used currently in a research program at the owner’s institute of higher education which is accredited by the American Association for Accreditation of Laboratory Animal Care;
(3) An animal is reasonably suspected of having inflicted bodily harm on any human being or animal, or poses a threat to public safety or constitutes a public nuisance;
(4) A dog, cat or ferrets does not have a valid current rabies vaccination;
(5) A miniature swine does not have valid, current vaccinations for erysipelas, parvo virus and leptospirosis;
(6) A vicious, prohibited or unmuzzled animal is in a place of public assembly;
(7) An animal is not cared for in violation of section 6-65
(8) An animal has rabies or symptoms thereof, or that a person could reasonably suspect as having rabies, or that bites, scratches or otherwise creates a condition which may have exposed or transmitted the rabies virus to any human being or animal;
(9) An animal is not kept in conformity with this chapter or state law; and
(10) A cat is roaming beyond the boundaries of the premises of the person having charge, care, or ownership of the cat.
(b) If, by a license tag or other means, the owner of an impounded animal can be identified, the animal care and control manager shall, as soon as practicable after impoundment, notify the owner, if reasonably possible, that if the impounded animal is not redeemed within three (3) days after impoundment, disposition of the impounded animal shall occur in accordance with this chapter, and that the owner has a right to a hearing on the validity of the impoundment and applicable fees, and the disposition of the impounded animal in accordance with this chapter. A hearing shall be held as soon as practicable if requested by the owner prior to the disposal or destruction of the animal as provided in this chapter.
Sec. 6-44. – Time; fees: impoundment; bite; boarding; vaccination or license.
(a) Impounded animals, including those released from quarantine, shall be kept for three (3) days from the date of impoundment. In calculating the length of this time, the first day after impoundment shall be day one. If the owner of such impounded animal does not redeem it within three (3) days after impoundment, disposition will be in accordance with this chapter. The animal may be disposed of prior to the expiration of such time if in the professional opinion of the animal control authority disposition is necessary to avoid the unnecessary suffering of a sick or injured animal.
(b) Impounded animals, including those released from quarantine, shall have a microchip implanted in the animal by the animal care and control center.
(c) Impounded and quarantine animals, except for prohibited animals, shall be available for immediate redemption to their owner upon presenting photo identification to the city (of which the city shall keep a copy) and paying all applicable fees. Impounded prohibited animals shall be available for immediate redemption by the owner after presenting photo identification (of which the city shall keep a copy) and paying all applicable fees. In addition, the owner of a prohibited animal must sign an agreement with the city stipulating that the owner 1) shall lawfully and immediately remove from the city limits the prohibited animal and shall not allow the prohibited animal to return to the city; and 2) shall consent to the city humanely destroying the prohibited animal if the animal returns and is found within the city limits. If the owner of a prohibited animal fails to comply with this subsection, the prohibited animal may be either euthanized or removed from the city as determined by the animal care and control division. The owner of a prohibited animal shall pay to the city the applicable fees and costs of impoundment and handling.
(d) Amounts of the “applicable fees” are established by the city council. Types of “applicable fees” which must be paid by the animal owner to reclaim impounded or quarantined animals shall be determined in accordance with this subsection.
(1) An impoundment and boarding charge will be charged for all reclaimed animals. This charge shall take into account and reflect the species of the animal in question, the amount of staff time required to capture the animal, and whether such animal is: (i) a prohibited animal; (ii) currently vaccinated against rabies, (iii) validly licensed, (iv) microchipped, and (v) spayed or neutered. The impoundment and boarding charge shall also reflect whether the animal required quarantine. This charge will also reflect, apart from any quarantine issue, whether the animal could be housed with one (1) or more others or required its own cage due to size or temperament. This charge shall also take into account and reflect the number of times that any dog or cat belonging to the same owner has been impounded at the animal care and control center within the preceding twelve (12) months, for whatever reason. In each instance, the factors affecting the amount of the impoundment and boarding charge shall be itemized in the invoice provided to an owner at the time the animal is reclaimed.
(2) A microchip implantation fee will be charged if the impounded and/or quarantined animal does not have microchip identification implanted in that animal prior to being impounded or quarantined.
(3) For any animal released pursuant to a sterilization and vaccination agreement, a deposit will be charged in an amount established annually by the city council. If an owner fails to provide proof to the animal care and control division from a veterinarian that each animal subject to such agreement was sterilized and vaccinated within thirty (30) days from the date the animal was reclaimed, the amount of such deposit shall be forfeited and used to defray costs associated with additional staff time required to ensure that each animal in question was sterilized and vaccinated.
(4) An impoundment and boarding charge will be made for every day and any part of a day that the animal is in the custody of the animal care and control center.
(5) Where an owner cannot provide proof to the animal care and control division at the time of release from impoundment that the impounded animal is currently vaccinated against rabies and validly licensed, then a charge for the legally required vaccination and/or licensing will be made and a voucher provided to the owner to receive vaccination services from a veterinarian.
(6) A schedule of the current “applicable fees” for reclaiming impounded or quarantined animals is available for review at the animal care and control center.
(7) It is not a defense to prosecution of any citations that applicable impoundment, bite, boarding, vaccination, microchip or license fees have been paid.
Conditions for release of impounded animals are as follows:
(a) Before releasing any animal to the owner, the animal care and control manager shall require sufficient proof that reasonable precautions have been taken to prevent further violations of this chapter. If the owner does not submit sufficient proof of such precautions, the animal may continue to be impounded for three (3) additional days. Upon the expiration of that second three-day period, the animal care and control manager shall determine the disposition of the impounded animal in accordance with the provisions of this chapter.
(b) No impounded animal suffering from any disease, ailment or injury may be redeemed until the animal care and control manager is provided with sufficient information to determine that arrangements have been made for proper treatment of the animal by a licensed veterinarian.
(c) Except where otherwise provided in this chapter, animals not redeemed within three (3) calendar days following impoundment or release from quarantine shall become the property of the city and shall at the direction of the animal care and control manager be placed for adoption in a suitable home, transferred to a bona fide humane society, kept for city purposes, be humanely disposed of or destroyed, or be disposed of for medical purposes in compliance with section 6-45(d) of this chapter. (Ord. No. 10553, § 1, 3-27-90; Ord. No. 10586, § 1, 5-16-90; Ord. No. 13537, § 1, 7-29-98; Ord. No. 14874, § 12, 12-4-01)
Sec. 6-46. – Requirements for adoption and reclamation.
(a) The animal care and control center may not release a dog or cat for adoption unless the animal (1) has a microchip implanted; (2) has been sterilized; and (3) has received rabies vaccination according to section 6-41. Vaccination and sterilization are not required if the release is made to an owner who has signed an agreement to have the animal sterilized and vaccinated by a private veterinarian and who has paid the deposit required by section 6-44(d)(3).
(b) The animal care and control center may not release a dog or cat for reclamation unless the animal (1) has a valid, current city license; (2) has been sterilized, and (3) has received rabies vaccination according to section 6-41. Vaccination is not required if the release is made to an owner who provides proof that the animal is current on its vaccinations or has signed an agreement to have the animal vaccinated by a private veterinarian and has paid the deposit required by section 6-44(d)(3). Sterilization is not required if the release is made to an owner who has signed an agreement to have the animal sterilized by a private veterinarian and has paid the deposit required by section 6-44(d)(3) or to an owner who provides proof that (i) the animal been previously sterilized, (ii) a veterinarian has issued a signed, written opinion that sterilization would jeopardize the animal’s health, or (iii) the animal is the subject of a valid intact pet permit and has not been previously impounded in the city.
(c) The sterilization and vaccination agreement must contain:
(1) A sterilization completion date, which is:
a. The thirtieth day after the date of adoption or reclamation in the case of an adult animal; or
b. The thirtieth day after a specific date estimated to be the date an infant female animal becomes six (6) months old or an infant male becomes eight (8) months old; and
(2) A statement, printed in conspicuous, bold print, that sterilization and vaccination of the animal are required, and that if the animal is not sterilized on or before the appropriate date or is not vaccinated within a reasonable time, the owner commits a criminal offense punishable as a Class C misdemeanor and forfeits the deposit paid under section 6-44(d)(3).
(d) Except as provided by this subsection, an owner who signs a sterilization and vaccination agreement under this section shall have the animal sterilized on or before the sterilization completion date stated in the agreement. If the sterilization completion date falls on a Saturday, Sunday, or legal holiday, the deadline is extended to the first day that is not a Saturday, Sunday, or legal holiday. The animal care and control center may extend the deadline for thirty (30) days on presentation of a written report from a licensed veterinarian stating that the life or health of the animal may be jeopardized by surgery. There is no limit of the number of extensions that may be granted for this reason.
(e) When adopting or reclaiming an animal from the city’s animal care and control center, an owner must sign an adoption or reclamation agreement and must present government-issued photo identification to the city so that the city can make a copy of it.
(f) It shall be unlawful for a person who adopted or reclaimed a dog or cat from the animal care and control center and executed a sterilization and vaccination agreement for the subject animal (i) to fail or refuse to have the subject animal vaccinated within a reasonable time or (ii) to fail or refuse to have the subject animal sterilized by the date specified in the agreement or in subsequent extension(s) of the deadline as may be granted by the animal care and control center pursuant to section 6-46(d).
Sec. 6-47. – Confirmation of sterilization and vaccination, death or lost or stolen animal.
(a) Except as provided by subsection (b) and (c) of this section, every owner who signs a sterilization and vaccination agreement under section 6-46 of this article shall provide the animal care and control center from which the owner adopted a dog or cat, a certificate of sterilization and/or vaccination signed by the veterinarian who performed the surgery and/or vaccination; this certificate must include a brief description of the animal and provide the date of sterilization and/or vaccination. It shall be unlawful for a person who adopts or reclaims a dog or cat from the animal care and control center and who has executed a sterilization and vaccination agreement for the subject animal to fail or refuse to provide a certificate of sterilization and/or vaccination for the animal to the animal care and control center by seven (7) days from the date the animal is sterilized and/or vaccinated.
(b) If the adopted or reclaimed animal dies on or before the deadline provided by section 6-46 of this article, the owner shall provide to the animal care and control center, no later than seven (7) days from the date of the animal’s death, a signed letter stating that the animal is dead, describing the cause of death, if known, and providing the date of death. The letter required by this subsection is in lieu of the letter required by subsection (a) of this section.
(c) If an adopted or reclaimed animal is lost or stolen before the sterilization completion date, the owner shall deliver to the animal care and control center a signed letter stating that the animal is lost or stolen. The letter must be delivered not later than the seventh day after the date of the animal’s disappearance and must described the circumstances surrounding the disappearance and provide the approximate date of the disappearance. The letter required by this subsection is in lieu of the letter required by subsection (a) of this section.
Sec. 6-48. – Noncompliance with sterilization agreement; animal care and control center right of reclamation.
(a) The animal care and control center may promptly reclaim the adopted animal from the new owner if the animal care and control center does not receive the following from the new owner after the expiration of the seventh day after the sterilization completion date agreed to under section 6-46
(1) A certificate of sterilization under section 6-47(a); or
(2) A letter stating the animal has died under section 6-47(b) or
(3) A letter stating that the animal is lost or stolen under section 6-47(c) from the new owner.
Editor’s note— Ord. No. 18751-08-2009, § 12, adopted August 11, 2009, repealed § 6-49, which pertained to affirmative defense. See also the Code Comparative Table.
Sec. 6-50. – Reserved.
Editor’s note— Ord. No. 18751-08-2009, § 13, adopted August 11, 2009, repealed § 6-50, which pertained to mandatory spay/neuter of unrestrained dogs and cats. See also the Code Comparative Table.
Secs. 6-51—6-60. – Reserved.
Sec. 6-61. – Unlawful acts enumerated.
(a) It shall be unlawful for a person to crop a dog’s ears, dock a tail, remove dew claws or perform other surgical procedures on a dog or a cat except as provided by the veterinary licensing act.
(b) It shall be unlawful for a person to sell or deliver live chickens, ducklings, goslings or rabbits less than eight (8) weeks of age to any person in quantities of less than five (5).
(c) It shall be unlawful for a person to sell, offer for sale, barter or display any living chickens, rabbits, ducks or any other fowl or animal which has been dyed, colored or otherwise treated so as to impart to them an artificial color.
(d) It shall be unlawful for a person to give away any live animal as a prize or inducement for the purpose of attracting trade or business.
(e) It shall be unlawful for a person to use steel jaw or leg-hold traps except in the case of rat control.
(f) It shall be unlawful for any person to beat, starve, overwork or to otherwise abuse any animal.
(g) It shall be unlawful for an owner or other person having care and control of any animal to abandon said animal.
(h) It shall be unlawful for a person to confine an animal in a parked or standing vehicle in such a way as to endanger the animal’s health, safety, or welfare. It is presumed that an animal’s health, safety, or welfare is endangered when the animal is confined in a parked or standing vehicle for a period of five (5) or more minutes when the ambient outside air temperature measures above eighty-five (85) degrees Fahrenheit or below thirty-five (35) degrees Fahrenheit.
(i) It shall be unlawful for a person to use a chain, rope, tether, leash, cable, or other device to attach a dog to a stationary object or trolley system. Restraint under such conditions is presumed to be cruel confinement for purposes of this chapter.
(j) Except as otherwise provided in this paragraph, it shall be unlawful for a person to confine an animal for a substantial portion of the day in an outdoor enclosure that provides less than forty-eight (48) square feet of space for each animal that it contains that is at least six (6) months old. It is presumed that an animal is being confined for a substantial portion of the day if a police officer, animal care and control officer, code enforcement officer, or the person charged with enforcing this ordinance witnesses the animal in said enclosure at least twice on the same day at two (2) separate times that are at least five (5) hours apart.
The prohibition in this paragraph (j) shall not apply to (i) registered non-profit agencies that keep animals for purposes of rescue, rehabilitation, or adoption so long as such animals are otherwise maintained in accordance with the requirements of this chapter; or (ii) situations in which animals are being boarded for a period of less than thirty (30) days so long as such animals are otherwise maintained in accordance with the requirements of this chapter.
(k) It shall be unlawful for a person to knowingly manufacture, buy, sell, barter, exchange, possess, advertise, or otherwise offer equipment used for training or handling a fighting bird, including, but not limited to, a cage, decoy, pen, house for keeping a fighting bird, feeding apparatus, training pen, or a gaff, slasher, or other sharp implement designed for attachment to a fowl with the intent that the equipment be used in birdfighting. For purposes of this provision, “gaff” means an artificial steel spur designed to attach to the leg of a fowl to replace or supplement the fowl’s natural spur, and “slasher” means a steel weapon resembling a curved knife blade designed to attach to the foot of a fowl. For purposes of this provision, it is presumed that equipment is intended to be used for birdfighting if the decoy or gaff, slasher, or other implement (i) bears blood or other biological matter or residue; or (ii) if a police officer, animal care and control officer, code enforcement officer, or other person charged with enforcing this ordinance witnesses the decoy or implement (a) attached to a bird or (b) in the pen, coop, or yard in which the bird is located.
(l) The actions prohibited by this section are in addition to any prohibitions existing elsewhere in this code or any applicable state or federal law. Nothing in this section shall be construed to limit any duty imposed on an owner by any other provision of this Code or any applicable state or federal law.
(1) Public safety officers, including officers in the city code compliance, public health, fire, and police departments, shall have the authority to seize any animal that is the subject of any violation of this section if doing so is believed to be necessary to protect the animal’s health, safety, or welfare.
(2) If an officer personally witnesses a violation of any provision of this section occurring in plain view from or on public property, the officer may seize the animal without seeking issuance of a warrant even if doing so requires entering onto or into private property.
(3) If an animal is seized without a warrant under subsection (m)(2), a timely post-seizure hearing shall be held to satisfy the constitutional requirements of due process.
(n) Nothing in this section shall be construed to prevent public safety officers, including officers in the city code compliance, public health, fire, and police departments from euthanizing animals when authorized to do so by any statute, ordinance, or law, or when such action is deemed necessary to spare the animal unreasonable pain and suffering or in the interest of the public health and safety.
Cross reference— License revocation for violation, § 6-5 (b).
Sec. 6-62. – Keeping of certain animals prohibited.
It shall be unlawful for a person to sell, offer for sale, barter, trade, keep, own, maintain, use or have in a person’s possession or on premises under such person’s control any of the following:
(a) Any dangerous animal except as provided in section 6-15 of Article III, pursuant to a final determination that the animal is dangerous; or
(b) Any prohibited animal unless that person is a person as exempted by Section 822.102, Subchapter E, Dangerous Wild Animals, of the Texas Health and Safety Code, as amended.
(c) It shall be unlawful for a person to sell, offer for sale, barter, trade, keep, own, maintain, use or have in a person’s possession or on premises under such person’s control any of the following:
(1) Any dangerous animal except as provided in section 6-16 pursuant to a final determination that an animal is dangerous; or
(2) Any prohibited animal.
(3) A prohibited animal is exempt from this section if:
a. The animal(s) belongs to a bona fide zoological park, circus, educational institution, museum, licensed laboratory, publicly owned nature center, or animals kept by bona fide members of an educational or scientific association or society approved by the director of health, or persons holding permits from an agency of the state or the United States for the care and keeping of animals for rehabilitative purposes. If a person holds a permit from the Texas State Department of Parks and Wildlife to operate a wildcare center in the city, the permit holder must also comply with the city comprehensive zoning ordinance, as amended, and must keep any and all animals or reptiles in cages of sufficient size, construction and strength to restrain the animal or reptile at all times; or
b. The animal is an assistance or service animal as defined herein, that has been registered with the city and has provided to the animal care and control manager:
1. Records of vaccination appropriate for the species of animal;
2. Documentation from a veterinarian that the animal is healthy;
3. Proof of proper restraint for the animal; and
4. Proof that the animal has been or is being trained to perform tasks of an assistance or service animal. (Ord. No. 10553, § 1, 3-27-90; Ord. No. 13537, § 1, 7-29-98; Ord. No. 16022, § 4, 7-6-04; Ord. No. 16009, § 3, 4-18-06)
Sec. 6-63. – Guard dogs.
(a) All guard dogs shall be registered with the animal care and control manager prior to being used as guard dogs and thereafter registered annually. The combined license/rabies tag issued for a guard dog, pursuant to section 6-22, shall be of an easily identifiable shape and color and must be worn on the dog at all times.
(b) A guard dog that commits an unprovoked bite upon a human being or animal shall be quarantined as required in section 6-44. If a person committing a crime is bitten by a guard dog that is protecting life or property, the animal may be observed at a kennel, or the animal care and control center as directed by the city health officer or his authorized representative.
(c) That portion of the “Private Investigators and Private Security Agencies Act,” Article 4413(29bb), V.T.C.S., which refers to guard dog companies and restrictions on the use of guard dogs, is hereby adopted by reference.
(a) If the city is asked to pick up a small dead animal from premises which are used for nonresidential purposes, the owner of the animal or the person in control of the premises on which the animal is located shall pay the sum established by city council for each animal which the city picks up.
(b) Owners are responsible for the proper disposition of large dead animals other than a dog or cat.
(Ord. No. 10563, § 2, 4-10-90)
Sec. 6-65. – Proper care of animals.
Every owner or other person having care and control of any animal shall provide the following for each animal under his or her care and control:
(a) Sufficient nutritious and wholesome food, served to the animal in clean containers, to maintain the animal in good health;
(b) Clean and wholesome water, served to the animal in a clean container, such water to be available to the animal at all times;
(c) Adequate shelter, which shall allow the animal to remain dry and protected from the elements at all times and which shall provide either natural or artificial shade for the animal to avoid direct sunlight. If the shelter is provided by enclosure, the enclosure shall allow for adequate ventilation; and
(d) Veterinary care as needed to prevent suffering.
(a) It shall be unlawful for an animal establishment to sell, trade or give away any dog or cat, over three (3) months of age, unless the dog or cat has been licensed and vaccinated as required by this chapter.
(b) The animal care and control manager shall be permitted to inspect any animal establishment and all animals and the premises where such animals are kept at any reasonable time during normal business hours to ensure compliance with all provisions of this chapter.
Sec. 6-78. – Minimum standards for animal establishments.
In addition to the other requirements of this article, animal establishments shall comply with the following minimum standards:
(a) Remove manure and droppings from pens, yards, cages, and other enclosures daily and handle or dispose of the excretions in such manner as to keep the premises free of any nuisance.
(b) Place food in impervious containers on impervious surfaces.
(c) Remove all refuse on the premises and dispose of same by a means approved by the city health officer.
(d) Such standards of sanitation shall be administered by the city health officer.
(e) Such establishments will comply with all laws and city ordinances. It shall be unlawful for any animal establishment to fail or refuse to comply with any minimum standard set forth in this section.
(Ord. No. 10553, § 1, 3-27-90)
Sec. 6-79. – Prohibited sales.
(a) It shall be unlawful for any person to sell, exchange, trade, barter, lease, rent, give away, or display for a commercial purpose any live animal on any roadside, public right-of-way, parkway, median, park, playground, swimming pool, other recreation area, flea market, or commercial or retail parking lot that is generally accessible by the public, regardless of whether such access is authorized.
(b) A person commits an offense if the person fails to comply with this section.
(c) It is an affirmative defense to prosecution under subsection (a) that the person is a: veterinary clinic; animal hospital; animal shelter; animal welfare, rescue, and/or adoption agency that is a registered non-profit entity in compliance with section 501(c)(3) of the Internal Revenue Code; bona fide zoological park; circus; educational institution; museum; licensed laboratory; publicly owned nature center; bona fide member of an educational or scientific association or society approved by the director of health; persons holding permits from an agency of the state or the United States for the care and keeping of animals for rehabilitative purposes; animal establishment in compliance with the terms of this chapter; or individual caring for animals in his private residence in compliance with the terms of this chapter.
(d) Officers in the city’s public health, code compliance, and police departments are authorized to investigate alleged violations of this section and to issue citations for such violations.
Miniature swine, as defined in section 6-1, may be kept as pets in the City of Fort Worth. The following requirements shall apply to the keeping of miniature swine within the City of Fort Worth:
(a) There shall be a maximum of two (2) swine per household or business. The swine may be of any age. Under no circumstances may a person keep more than two (2) miniature swine per household or business.
(b) All swine must be either spayed or neutered. Under no circumstances may a person engage in the propagation or breeding of miniature swine within the city limits of the City of Fort Worth.
(c) It shall be unlawful for any person to keep or maintain miniature swine outdoors. A person may permit miniature swine outdoors for brief periods (but not to exceed one (1) hour per occurrence), as necessary for exercise or for the elimination of waste. The outdoor area used for exercise and waste elimination must be a secure area from which the swine may not escape. Miniature swine are subject to all other sections of this chapter, including sections on restraint of animals.
It shall be unlawful for any person to keep or maintain miniature swine unless the swine have received annual vaccinations against erysipelas, parvo virus and leptospirosis. The first inoculations for such diseases must be received before the animal is four (4) months of age. The owners of all miniature swine must forward to the Fort Worth Animal Care and Control Division a health certificate from a licensed veterinarian, within fourteen (14) days of vaccination. Such certificate shall contain the following information:
(a) Name, address, driver’s license number and telephone number of the owner;
(b) Name, address and telephone number of the licensed veterinarian providing the vaccinations and certificate;
(c) Name, recent photograph and description of the animal, giving the age, weight and height;
(d) The types and dates of the vaccinations;
(e) A statement of the general health of the animal; and
(f) Certification that the animal has been either spayed or neutered.
(a) All miniature swine kept within the City of Fort Worth shall be registered with the animal care and control division within fourteen (14) days from the time the animal is taken to its place of residence. The following requirements shall apply to registration of all miniature swine:
(1) Filing of a health certificate as described above;
(2) Payment of an annual fifty dollar ($50.00) registration fee; and
(3) Obtaining a registration tag from the animal care and control division.
(b) The owner or keeper of miniature swine must inform the animal [care and] control division within fourteen (14) days of the death, change in ownership or caretaker, or change in residence location of a miniature swine.
All locations where miniature swine are kept shall be kept in a clean and sanitary condition. Exercise areas shall be cleaned of swine excrement on a daily basis.
(Ord. No. 11139, § 2, 7-28-92)
Sec. 6-84. – Violations; penalties.
(a) Any violation, disobedience, omission, neglect or failure or refusal to comply with the enforcement of any of the provisions of this article shall be punishable by a fine not to exceed two thousand dollars ($2,000.00) for each violation. Each day that a violation is permitted to exist shall constitute a separate offense.
(b) If any person is found guilty of having violated any provision of this article, such violation may result in revocation of such person’s authorization to keep or maintain miniature swine.
(Ord. No. 11139, § 2, 7-28-92) Sec. 6-85. – Creation.
(a) There is hereby created, pursuant to V.T.C.A., Health and Safety Code, Section 823.005, an animal shelter advisory committee.
(b) The purpose of the committee shall be to assist animal shelters located in the city with compliance with Chapter 823 of the Health and Safety Code. Additionally, the committee may provide recommendations to the city regarding its compliance with the Texas Rabies Control Act, and may recommend ways to improve the efficiency and cost effectiveness of the city’s animal [care and] control program.
(c) The committee shall consist of seven (7) members appointed by a majority vote of the city council. Committee members shall serve two-year terms except as provided in subsection (d).
(d) Appointments shall be as follows:
(1) Places 1, 3, 5, and 7. Terms expire each October first, each odd-numbered year. The first term of such members shall expire October 1, 1995.
(2) Places 2, 4, and 6. Terms expire each October first, each even-numbered year. The first term of such members shall expire October 1, 1996.
(e) The composition of the committee shall include at least one (1) licensed veterinarian, at least one (1) municipal official, at least one (1) person whose duties include the daily operation of an animal shelter, and at least one (1) representative from an animal welfare organization. The same person shall not be appointed to fulfill more than one (1) of these requirements.
(f) Members of the committee shall be subject to removal at any time by the city council. Any vacancy in the membership of the committee shall be filled by the city council for the unexpired term of the member whose place has, by removal or otherwise, become vacant. Vacancies shall be filled within sixty (60) days after the city council removes the member or within sixty (60) days after the city council receives notice of the member’s resignation.
(Ord. No. 11547, § 1, 4-19-94)
Sec. 6-86. – Meetings.
(a) The committee shall meet a minimum of three (3) times per calendar year.
(b) A quorum of the committee shall consist of a majority of the members, excluding any vacancies. The presence of a quorum of the committee shall be required prior to a meeting being called to order.
(c) Approval of all items before the committee shall require a majority vote of those in attendance.
(d) The committee may adopt rules, subject to city council approval, for the conduct of its meetings.
(Ord. No. 11547, § 1, 4-19-94)
(35) Editor’s note— Ord. No. 13537, § 1, adopted July 29, 1998, amended Art. III, in its entirety, to read as herein set out in §§ 6-13.5—6-20.9. Prior to inclusion of said ordinance, Art. III pertained to similar subject matter. See the Code Comparative Table.
(36) Editor’s note— Ord. No. 17831, § 1, adopted October 9, 2007, amended Div. 2, in its entirety, to read as herein set out. Prior to inclusion of said ordinance, Div. 2 pertained to similar subject matter. See also the Code Comparative Table.
(37) Editor’s note— Section 1 of Ord. No. 11464, adopted Dec. 7, 1993, repealed Art. IV in its entirety. Formerly, Art. IV consisted of §§ 6-21—6-25, which pertained to dog and cat licenses and derived from § 1 of Ord. No. 10553, adopted Mar. 27, 1990. Section 1 of Ord. No. 11464 provided further for the addition of a new Art. IV, §§ 6-21—6-27, as herein set out.
(38) Editor’s note— Ord. No. 13537, § 1, adopted July 29, 1998, amended the title of Art. VII to read as herein set out. See the Code Comparative Table.
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CITY OF COLLEYVILLE, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2014 Prepared by Finance Department Terry Leake Assistant City Manager/Chief Financial Officer Karen Hines Finance Manager
CITY OF COLLEYVILLE, TEXAS TABLE OF CONTENTS YEAR ENDED SEPTEMBER 30, 2014 Page Number INTRODUCTORY SECTION Letter of Transmittal …………………………………………………………………………………………….. 3 – 6 Organizational Chart …………………………………………………………………………………………….. 7 Certificate of Achievement ……………………………………………………………………………………. 8 Principal Officials ………………………………………………………………………………………………… 9 FINANCIAL SECTION Independent Auditors’ Report………………………………………………………………………………… 13 – 15 Management’s Discussion and Analysis …………………………………………………………………. 19 – 27 Basic Financial Statements Statement of Net Position …………………………………………………………………………………… 30 – 31 Statement of Activities ……………………………………………………………………………………….. 32 – 33 Balance Sheet – Governmental Funds ………………………………………………………………….. 34 – 35 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds ………………………………………………………………. 36 – 37 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance of Governmental Funds to the Statement of Activities …………………………………………………………………………………….. 38 Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – General Fund …………………………………………… 39 CITY OF COLLEYVILLE, TEXAS TABLE OF CONTENTS (Continued) YEAR ENDED SEPTEMBER 30, 2014 Page Number FINANCIAL SECTION (Continued) Basic Financial Statements (Continued) Statement of Net Position – Proprietary Funds………………………………………………………. 40 Statement of Revenues, Expenses and Changes in Fund Net Position – Proprietary Funds ………………………………………………………………. 41 Statement of Cash Flows – Proprietary Funds ……………………………………………………….. 42 – 43 Statement of Fiduciary Net Position – Fiduciary Funds ………………………………………….. 44 Notes to the Financial Statements ………………………………………………………………………… 45 – 68 Required Supplementary Information Schedule of Funding Progress for the Retirement Plan …………………………………………… 71 Nonmajor Governmental Funds Combining Balance Sheet …………………………………………………………………………………… 74 – 79 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ……………………………………………………………………………….. 80 – 85 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – Debt Service Fund …………………………………….. 86 Agency Funds Combining Statement of Fiduciary Net Position ……………………………………………………. 88 Combining Statement of Changes in Assets and Liabilities …………………………………….. 89 CITY OF COLLEYVILLE, TEXAS TABLE OF CONTENTS (Continued) YEAR ENDED SEPTEMBER 30, 2014 Page STATISTICAL SECTION (Unaudited) Exhibit/Table Number Net Position by Component ………………………………………………………….. 1 92 – 93 Changes in Net Position ……………………………………………………………….. 2 94 – 97 Fund Balances – Governmental Funds …………………………………………… 3 99 Changes in Fund Balances – Governmental Funds ………………………….. 4 100 – 101 Assessed Value and Estimated Actual Value of Taxable Property…………………………………………………………………… 5 102 Direct and Overlapping Property Tax Rates ……………………………………. 6 103 Principal Property Taxpayers ………………………………………………………… 7 104 Property Tax Levies and Collections ……………………………………………… 8 105 Principal Water Customers …………………………………………………………… 9 106 Ratios of Outstanding Debt by Type ……………………………………………… 10 107 Ratios of General Bonded Debt Outstanding…………………………………… 11 108 Direct and Overlapping Governmental Activities Debt …………………….. 12 109 Legal Debt Margin Information …………………………………………………….. 13 110 Pledged Revenue Coverage ………………………………………………………….. 14 112 – 113 Demographic and Economic Statistics …………………………………………… 15 114 Principal Employers …………………………………………………………………….. 16 115 Fulltime Equivalent City Government Employees by Function/Program …………………………………………………………………….. 17 116 Operating Indicators by Function/Program …………………………………….. 18 117 Capital Asset Statistics by Function/Program………………………………….. 19 118 CITY OF COLLEYVILLE, TEXAS TABLE OF CONTENTS (Continued) YEAR ENDED SEPTEMBER 30, 2014 Page Number COMPLIANCE Independent Auditors’ 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 ………………………………………………………………………….. 121 – 122 1 INTRODUCTORY SECTION 2 THIS PAGE INTENTIONALLY LEFT BLANK Integrity Service Innovation January 27, 2015 To the Citizens of the City of Colleyville: The Comprehensive Annual Financial Report of the City of Colleyville (the “City”) for the fiscal year ended September 30, 2014, is hereby submitted. Responsibility for both the accuracy of the data, and completeness and fairness of the presentation, including all disclosures, rests with the City. To the best of our knowledge and belief, the enclosed data are accurate in all material respects and are reported in a manner designed to present fairly the financial position, results of operations and cash flows of the various funds of the City. All disclosures necessary to enable the reader to gain an understanding of the City’s financial activities have been included. In developing and evaluating the City’s accounting system, consideration is given to the adequacy of internal accounting controls. These controls are designed to provide reasonable, but not absolute, assurance regarding the safeguarding of assets against loss from unauthorized use or disposition, and the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be derived, and the evaluation of costs and benefits requires estimates and judgments by management. We believe that the City’s current system of internal controls adequately safeguards assets and provides reasonable assurance of proper recording of financial transactions. As required by the City’s charter, the financial statements have been audited by Pattillo, Brown & Hill, L.L.P., a firm of certified public accountants. The goal of the independent audit was to provide reasonable assurances that the financial statements of the City of Colleyville for the fiscal year ended September 30, 2014, are free of material misstatement. The independent audit involved examining on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the City of Colleyville’s financial statements for fiscal year ended September 30, 2014, are presented in conformity with generally accepted accounting principles (GAAP). As required by GAAP, management provides a narrative introduction, overview and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City’s MD&A can be found immediately following the independent auditors report. 3 100 Main Street Colleyville, Texas 76034 817.503.1000 Colleyville.com 4 PROFILE OF THE GOVERNMENT On January 10, 1956, the City of Colleyville was incorporated and adopted a home-rule charter on January 15, 1977. It has a Council-Manager form of government with policy making and legislative authority vested in a governing body consisting of a Mayor and six Council members. The Mayor and Council are responsible for passing ordinances, adopting the budget, appointing board and committee members, and hiring the City Manager. The City Manager is responsible for carrying out the policies and ordinances of the Mayor and Council, overseeing the day-to-day operations of the City, and appointing department heads. The Mayor and six Council members are elected on an at large, nonpartisan basis for three year terms. The three year terms are staggered so that the Mayor and City Council persons from Place 1 and 2 are elected in year one, City Council persons from Places 3 and 4 are elected in year two, and City Council persons from Places 5 and 6 are elected in year three. The City provides a full range of municipal services. These services include police and fire protection, municipal court, streets, drainage utility, leisure services (parks and recreation, Colleyville Center and library), water and sewer, engineering/community development, and general administrative services. Based upon the criterion set forth in generally accepted accounting principles, the following organizations are includable within the City’s reporting entity: Entity Method of Inclusion Colleyville Economic Development Corporation (CEDC) Blended Colleyville Crime Control and Prevention District Blended Colleyville Tax Investment Financing Reinvestment Zone Zone Number One (TIF) Discretely Presented The City Charter of the City of Colleyville establishes the fiscal year as October 1 through September 30. The Charter requires the City Manager to submit a proposed budget and accompanying budget message to the City Council each year and the proposed budget is presented to the City Council at a budget work session. After public hearings at two consecutive regular City Council meetings, the Council may adopt the proposed budget, with or without amendment. The budget ordinance is to be adopted no later than the 30th day of September and requires an affirmative vote of a majority of the Council. The City maintains budgetary control by adopting an annual operating budget for the General Fund, Debt Service Fund, Drainage Utility Fund, and Water and Sewer Enterprise Fund. Detail control is maintained at the line item level by encumbering available funds at the time a purchase order is written. Encumbrances lapse at fiscal year-end, but can be re-appropriated through a budget amendment during the following fiscal year. The City Manager is authorized to transfer budgeted amounts between departments within any fund. However, any revisions that alter the total expenditures of any fund must be approved by the City Council. LOCAL ECONOMY The City of Colleyville is a residential-oriented community located 11 miles northeast of the City of Fort Worth, 22 miles northwest of Dallas and 5 miles west of Dallas/Fort Worth International Airport in Northeast Tarrant County. Relocations of residents to the City continued in fiscal year 2014, as did commercial development. During the fiscal year, the City issued 108 residential building permits and the average square footage of a residence was almost five thousand square feet. 5 In Fiscal Year 2014, Whole Foods opened in an existing shopping center which brought additional sales tax and new tenants to Colleyville. Major transportation projects which were in progress were Phase I of State Highway 26 / Colleyville Boulevard, the utility relocations for further phases of State Highway 26 / Colleyville Boulevard, and the roundabout at the Jackson Road and Cheek-Sparger Road intersection. There is also an update to the comprehensive master plan that will include preparation of a common vision and goals, future land uses, downtown revitalization, transportation, corridor recommendations for Colleyville Boulevard, coordination with ongoing utility infrastructure planning, retail opportunities and economic development, and the development of future land use recommendations. For the Future. In Fiscal Year 2015, the aforementioned transportation projects will be complete and improvements to Pleasant Run Road the rehabilitation of Jackson Road and reconstruction of streets in the Kingston neighborhood, one of Colleyville’s earliest subdivisions. Noted by the many citizens responding to the 2014 Citizen Survey, trail improvements are a top priority and trail segments will be constructed on Pleasant Run from Mission Lane to Bogart Drive and the trail spur at the Webb House on the Cotton Belt Trail. There is also an update to the City Park, improvements and amenities added to the trail head at L.D. Lockett Park and the Cotton Belt Trail, and a playground at the Pleasant Run soccer complex. LONG TERM FINANCIAL PLANNING In Fiscal Year 2005, the City Council adopted a Fund Balance Policy requiring a ninety day reserve for fund balance in both the General Fund and the Utility Fund. In Fiscal Year 2011, the policy was updated to reflect the designations of non-spendable, restricted, committed, assigned and unassigned as required by GASB 54 and was reviewed for update in Fiscal Year in 2014. At the end of Fiscal Year 2014, both the General Fund and the Utility Fund have a fund balance in excess of the required three month reserve. Amount in excess of the reserve may be used to fund one-time capital expenditures. In Fiscal Year 2010, the City Council adopted a strategic plan, which incorporated strategic points to achieve the City’s vision. In August 2012, Council affirmed and slightly modified the strategic points to the following: Make a long-term commitment to economic development and promote a more diversified tax base Fostering excellence in core service delivery Protect and preserve Colleyville’s neighborhoods Deliver sustainable government Brand Colleyville with a unique identity In the area of sustainable government, a long-term Information Systems Management Strategic Plan was adopted as was the Parks and Recreation Master Plan. These two plans, which were adopted in Fiscal Year 2011 and Fiscal Year 2012, respectively, identify annual improvements over the next five years and accompanied by funding sources. In the Fiscal Year 2011 budget, a transition was made to performance based budgeting, with links to specific performance indicators to measure the efficiency and effectiveness of service delivery. There is an annual update to the six-year General Fund budget forecast that is presented to City Council as a part of the budget process. 6 As a part of the Fiscal Year 2008 budget process, the Mayor and Council and City Staff embarked upon developing a multi-year streets capital improvements program, with input from an appointed citizen committee that reviewed street infrastructure needs and financing opportunities. In Fiscal Year 2013, there was an update to this plan and it was expanded to include water, wastewater, drainage, trails, and sidewalks. The recommendations were incorporated into an infrastructure program that was approved by Council as a part of the Fiscal Year 2014 budget process. AWARDS AND ACKNOWLEDGEMENTS Awards. The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Colleyville for its comprehensive annual financial report for the fiscal year ended September 30, 2013. This was the twenty fourth consecutive year that the City has received this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to GFOA to determine its eligibility for another certificate. In addition, the City also received the GFOA’s Distinguished Budget Presentation award for its annual budget dated October 1, 2013. In order to qualify for this award, the City’s budget document was judged to be proficient in several categories, including as a policy document, a financial plan, an operations guide, and a communications device. The City received the silver member designation for the Texas Comptroller’s Leadership Circle for online financial transparency. Acknowledgements. The preparation of this report could not be accomplished on a timely basis without the dedicated endeavors of the entire staff of the Finance Department. We would like to express our sincere appreciation to all employees who contributed to the preparation. Additionally, we would also like to thank the Mayor, City Council, and City Manager for their support in planning and conducting the financial operations of the City in a responsible and progressive manner. Respectfully submitted, Terry Leake Assistant City Manager/Chief Financial Officer Karen Hines Finance Manager 7 CITY COUNCIL CITIZENS OF COLLEYVILLE ZONING BOARD OF ADJUSTMENT PLANNING AND ZONING COMMISSION LIBRARY BOARD AD HOC COMMITTEES PARKS AND RECREATION BOARD SIGN BOARD OF APPEALS CRIME CONTROL AND PREVENTION DISTRICT TAX INCREMENT FINANCING DISTRICT CITY MANAGER Jennifer Fadden CITY ATTORNEY Matthew Boyle MUNICIPAL JUDGE Michael Newman COLLEYVILLE CENTER MANAGER Leslie Hill HUMAN RESOURCES DIRECTOR Michelle Reyes LIBRARY, PARKS AND RECREATION DIRECTOR Mary Rodne COMMUNICATIONS DIRECTOR Mona Gandy COMMUNITY DEVELOPMENT DIRECTOR Ron Ruthven ASSISTANT CITY MANAGER/ CHIEF FINANCIAL OFFICER Terry Leake POLICE CHIEF Michael Holder ECONOMIC DEVELOPMENT DIRECTOR Marty Wieder PUBLIC WORKS DIRECTOR Bob Lowry FIRE CHIEF Brian Riley FINANCE MANAGER Karen Hines CITY SECRETARY Amy Shelley WATER AND WASTEWATER OPERATIONS STREET MAINTENANCE DRAINAGE BUILDING MAINTENANCE FLEET MAINTENANCE ENGINEERING & CONSTRUCTION INSPECTION OPERATIONS INSPECTIONS INVESTIGATIONS EMERGENCY MANAGEMENT UTILITY BILLING MUNICIPAL COURT PATROL INVESTIGATIONS CODE ENFORCEMENT BUILDING INSPECTION PLANNING INFORMATION SERVICES MANAGER Chris Pena MARKETING STRATEGIC SERVICES MANAGER Adrienne Lothery GIS COLLEYVILLE ECONOMIC DEVELOPMENT CORPORATION 8 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Colleyville Texas For its Comprehensive Annual Financial Report for the Fiscal Year Ended September 30, 2013 9 CITY OF COLLEYVILLE, TEXAS HOME RULE, COUNCIL – MANAGER FORM OF GOVERNMENT CITY OFFICIALS YEAR ENDED SEPTEMBER 30, 2014 David Kelly Mayor Carol Wollin Councilmember, Place 1 Chuck Mogged Councilmember, Place 2 Chris Putnam Councilmember, Place 3 Jody Short Councilmember, Place 4 Tom Hart Councilmember, Place 5 Mike Taylor Mayor Pro Tem and Councilmember, Place 6 Jennifer Fadden City Manager Terry Leake Assistant City Manager/Chief Financial Officer Karen Hines Finance Manager 10 THIS PAGE INTENTIONALLY LEFT BLANK 11 FINANCIAL SECTION 12 THIS PAGE INTENTIONALLY LEFT BLANK INDEPENDENT AUDITORS’ REPORT To the Honorable Mayor and Members of the City Council City of Colleyville, Texas Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of City of Colleyville, Texas, as of and for the year ended September 30, 2014, and the related notes to the financial statements, which collectively comprise the City of Colleyville, Texas’ basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. 13 14 An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Colleyville, Texas, as of September 30, 2014, and the respective changes in financial position, and, where applicable, cash flows thereof and the respective budgetary comparison for the General Fund, for the year then ended in accordance with accounting principles generally accepted in the United States of America. Change in Accounting Principle As discussed in Note I to the financial statements, in 2014 the City adopted new accounting guidance, GASB Statement No. 65, Items Previously Reported as Assets and Liabilities. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis on pages 19-27 and the Schedule of Funding Progress for the Texas Municipal Retirement System on page 71 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 15 Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Colleyville, Texas’ basic financial statements. The introductory section, combining and individual nonmajor fund financial statements and schedules, and statistical section, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the 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 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. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 27, 2015, on our consideration of the City of Colleyville, Texas’ internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City of Colleyville, Texas’ internal control over financial reporting and compliance. Waco, Texas January 27, 2015 16 THIS PAGE INTENTIONALLY LEFT BLANK 17 MANAGEMENT’S DISCUSSION AND ANALYSIS 18 THIS PAGE INTENTIONALLY LEFT BLANK 19 Management’s Discussion and Analysis As management of the City of Colleyville, we offer readers of the City’s financial statement this narrative overview and analysis of the financial activities of the City for the fiscal year ended September 30, 2014. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on pages 3 – 6 of this report. FINANCIAL HIGHLIGHTS The assets of the City of Colleyville exceeded its liabilities as of September 30, 2014, by $181,580,171 (net position). Of this amount, $32,758,533 (unrestricted net position) may be used to meet the City’s ongoing obligations to citizens and creditors in accordance with the City’s fund designation and fiscal policies. The City’s total net position increased by $12,643,668. As of the close of the current fiscal year, the City of Colleyville’s governmental funds reported combined ending fund balances of $36,026,409. Of this amount, $10,080,617 is unassigned fund balance available for use within the City’s fund designation and fiscal policies. As of September 30, 2014, unreserved, unassigned fund balance for the General Fund was $10,080,617 or 54.4% of the total General Fund budgeted expenditures and other financing uses. OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements are comprised of three components: (1) governmentwide financial statements, (2) fund financial statements and (3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-wide financial statements – The government-wide financial statements, which begin on page 30 of this report, 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, liabilities, and deferred inflows/outflows of resources, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The Statement of Activities presents information showing how the City’s net position changed during the fiscal year. All changes in net position are reported when the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. 20 Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in the future fiscal periods (e.g., uncollected taxes and earned but unused compensated absences). Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include General Government, Community Development and Engineering, Fire and Rescue, Leisure Services, Maintenance, Municipal Court, Police, and Streets and Drainage. The business-type activities of the City include Water and Wastewater, and Drainage Utility. 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 funds of the City can be divided into two categories – governmental funds and proprietary funds. Governmental Funds – Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on current sources and uses of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental funds balance sheet and the governmental fund statements of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. Beginning on page 34 of this report, information is presented separately in the Governmental Fund Balance Sheet and in the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances for the General Fund, Capital Projects and Debt Service Fund, all of which are considered to be major funds. Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report. Proprietary Funds – The City maintains one type of proprietary fund. 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 the Water and Wastewater and Drainage Utility Funds. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The basic proprietary fund financial statements which begin on page 40 of this report provide separate information for the Water and Wastewater and Drainage Utility Enterprise Funds since these are considered to be major funds 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. The notes to the financial statements can be found on pages 45 – 68 of this report. 21 Other Information – In addition to the basic financial statements and accompanying notes, this report also presents combining fund statements and schedules that further support the information in the financial statements. The combining fund statements and schedules for nonmajor funds are presented immediately following the notes to the financial statements beginning on page 74 of this report. GOVERNMENTAL-WIDE FINANCIAL ANALYSIS As noted earlier, net position may serve over time as a useful indicator of government’s financial position. In the case of the City of Colleyville, assets exceeded liabilities by $181,580,171 as of September 30, 2014. The largest portion of the City’s net position ($131,321,212) reflects its investments in capital assets (e.g., land, building, equipment, improvements, construction in progress and infrastructure), less any outstanding debt used to acquire those assets. The City uses these capital assets to provide service 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 be used to liquidate these liabilities. CITY OF COLLEYVILLE’S NET POSITION 2014 2013 2014 2013 2014 2013 Current and other assets $ 38,081,951 $ 34,107,679 $ 16,207,650 $ 15,392,384 $ 54,289,601 $ 49,500,063 Capital assets 105,718,089 101,978,118 43,861,991 42,436,223 149,580,080 144,414,341 Total assets 143,800,040 136,085,797 60,069,641 57,828,607 203,869,681 193,914,404 Deferred outflow of resources – – 116,835 – 116,835 – Total deferred outflow of resources – – 116,835 – 116,835 – Other liabilities 3,511,944 3,413,370 2,100,979 2,600,746 5,612,923 6,014,116 Long-term liabilities 15,102,680 16,461,152 1,690,742 2,255,194 16,793,422 18,716,346 Total liabilities 18,614,624 19,874,522 3,791,721 4,855,940 22,406,345 24,730,462 Net position: Net investment in capital assets 89,754,051 84,414,252 41,567,161 39,269,943 131,321,212 123,684,195 Restricted 17,500,426 13,116,403 – – 17,500,426 13,116,403 Unrestricted 17,930,939 18,680,620 14,827,594 13,702,724 32,758,533 32,383,344 Total net position $ 125,185,416 $ 116,211,275 $ 56,394,755 $ 52,972,667 $ 181,580,171 $ 169,183,942 Governmental Activities Business-type Activities Totals A portion of the City’s net position ($17,500,426) represents resources that are subject to external restriction on how they may be used. The remaining balance ($32,758,533) of unrestricted net position may be used to meet the City’s ongoing obligation to citizens and creditors in accordance with the City’s fund designation and fiscal policies. As of September 30, 2014, the City has positive balances in all three categories of net position, both for the City as a whole, as well as for its governmental and business-type activities separately. The increase of $9,132,953 in net position relating to governmental activities is primarily due to the acquisition of infrastructure improvements from developer contributions, increases in cash due to increases in sales tax, property tax, and building related revenues, and repayment of long term debt. The increase in net position of business type activities ($3,510,715) is related to the contributions of water and sewer infrastructure improvements from developers, repayment of long term debt and from water sales, as a tiered rate structure has been in place since December 2012, whereby customers who have monthly use greater than 20,000 gallons pay higher rates in increasing tiers. 22 Analysis of the City’s Operations – The following table provides a summary of the City’s operations for the year ended September 30, 2014. Governmental activities increased the City of Colleyville’s net position by $9,132,953. Business-type activities contributed an increase to the City’s net position of $3,510,715. CITY OF COLLEYVILLE’S CHANGES IN NET POSITION 2014 2013 2014 2013 2014 2013 Revenues: Program revenues: Charges for services $ 3,977,375 $ 3,410,235 $ 15,729,482 $ 15,590,354 $ 19,706,857 $ 19,000,589 Operating grants and contributions 486,869 468,361 – – 486,869 468,361 Capital grants and contributions 5,943,465 1,158,050 2,707,835 876,660 8,651,300 2,034,710 General revenues: Ad valorem taxes 12,950,832 12,497,692 – – 12,950,832 12,497,692 Sales taxes 6,472,195 5,902,557 – – 6,472,195 5,902,557 Franchise taxes 2,172,801 2,074,731 – – 2,172,801 2,074,731 Other taxes 98,160 68,592 – – 98,160 68,592 Investment earnings 39,697 77,269 23,655 38,987 63,352 116,256 Miscellaneous 61,643 85,562 – – 61,643 85,562 Gain on sale of capital assets 810,020 – 40,814 103,437 850,834 103,437 Total revenues 33,013,057 25,743,049 18,501,786 16,609,438 51,514,843 42,352,487 Expenses: General government 4,103,928 4,075,001 – – 4,103,928 4,075,001 Community development and engineering 1,613,311 1,429,755 – – 1,613,311 1,429,755 Fire and rescue 4,625,036 4,529,225 – – 4,625,036 4,529,225 Leisure services 3,776,068 4,106,822 – – 3,776,068 4,106,822 Maintenance 575,696 494,545 – – 575,696 494,545 Municipal court 501,604 586,709 – – 501,604 586,709 Police 5,019,343 4,961,444 – – 5,019,343 4,961,444 Streets and drainage 4,128,365 5,322,510 – – 4,128,365 5,322,510 Water and wastewater – – 13,238,893 12,544,530 13,238,893 12,544,530 Drainage – – 571,886 707,647 571,886 707,647 Interest on long-term debt 717,045 724,458 – – 717,045 724,458 Total expenses 25,060,396 26,230,469 13,810,779 13,252,177 38,871,175 39,482,646 Increases in net position before transfers 7,952,661 ( 487,420) 4,691,007 3,357,261 12,643,668 2,869,841 Transfers 1,180,292 1,112,540 ( 1,180,292) ( 1,112,540) – – Change in net position 9,132,953 625,120 3,510,715 2,244,721 12,643,668 2,869,841 Net position, beginning 116,211,275 115,586,155 52,972,667 50,727,946 169,183,942 166,314,101 Prior period adjustments ( 158,812) – ( 88,627) – ( 247,439) – Net position, ending $ 125,185,416 $ 116,211,275 $ 56,394,755 $ 52,972,667 $ 181,580,171 $ 169,183,942 Governmental Activities Business-type Activities Totals 23 FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS Governmental funds – The focus of the City of Colleyville’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 of Colleyville’s governmental funds reported combined ending fund balances of $36,026,409. Approximately 28% of this total amount ($10,080,617) constitutes unassigned fund balance. The remainder of the fund balance ($25,945,792 ) is reserved to indicate that it is not available for new spending because it has already been committed to pay for encumbrances or debt service or to provide for other items. Refer to page 34 of this report for a more detailed presentation of governmental fund balances. The decrease of approximately $921,000 in unassigned fund balance in the governmental funds for fiscal year 2014 is due to a number of the following factors. In the General Fund, the City’s original budgeted expenditures exceeded budgeted revenues by $(996,880), due to a planned utilization of $1,000,000 surplus fund balance in the adopted Fiscal Year 2014 General Fund budget to fund a portion of the $2.9 million street rehabilitation budget, which included a one-time increase of $500,000. This planned utilization of fund balance in the General Fund was included in the ten year financial forecast, and the fiscal year 2014 ending fund balance is greater than the three month policy requirement. The actual decrease to fund balance for the General Fund was ($926,589) for Fiscal Year 2014, primarily due to greater than anticipated revenues from sales taxes, ambulance revenues, building permits, property taxes and reductions to overall departmental expenditures. This was $73,411 less than the adopted utilization of $1 million surplus fund balance in the Fiscal Year 2014 budget. Also included was City Council approved authorization to provide for a transfer of unspent street maintenance funds at the end of the fiscal year ($1,903,179) and the authorized transfer of the difference in total revenues and expenditures of the General Fund to the Capital Projects Fund ($3,308,352) for use in future CIP street rehabilitation projects and other capital projects. This transfer was funded by the revenue increases beyond budgeted revenues, the gain of over $800,000 on the sale of the land where the former City Hall was located, which was not anticipated during Fiscal Year 2014 budget adoption. The aforementioned year end transfers to the Capital Projects Fund resulted in a net increase of $3,755,890 to that fund balance, and will be used for future street capital projects. As the aforementioned transfers from the General Fund to the Capital Projects Fund were contained within funds that are in the governmental fund classification, there was not a major increase or decrease reflected in the unrestricted total for governmental funds. Additionally, there was a utilization of $152,666 of surplus fund balance in the adopted Fiscal Year 2014 Debt Service budget for the second year lease payment on the radio tower and equipment due to the current level of existing fund balance and declining future debt obligations. The actual Fiscal Year 2014 decrease to fund balance for the Debt Service Fund was ($29,133) due to greater than anticipated property tax collections. Proprietary funds – The City’s proprietary fund statements beginning on page 40 of this report provide the same type of information found in the government-wide financial statements, but in more detail. Unrestricted net position of the respective major proprietary funds are Water and Wastewater ($13,291,151), and Drainage Utility ($1,536,443). The Water and Wastewater Fund experienced an increase in total net position of $3,160,217 during Fiscal Year 2014 due to revenue from the pass through of the Trinity River Authority wastewater rate increase and the receipt of developer contributions from the ten new subdivisions, which accounted for approximately $2.4 million. The Drainage Utility fund’s net position increased by $350,498, due to increased service charge revenue from new accounts and reductions to expenditures. 24 Governmental Activities – There was an increase in revenues from sales tax due to improving economic conditions and the capital grants category from increased developer contributions and impact fees stemming from new development and the addition of ten subdivisions in Colleyville in FY 2014. There was an increase in license and permit revenues due to an increase of 5 residential building permits from FY 2013 and additional commercial construction. The property tax base increased approximately $124 million (3.3%), due to the new residential and commercial construction, and the current year tax collection rate was over 99.68% of the levy. In FY 2013, there was a compensation and classification study performed. There was funding in the Fiscal Year 2014 budget, for bringing employees to the market minimum at a maximum of ten percent of current salary. There was the addition of three firefighter/paramedics, one police property room clerk and a plans examiner. There was additional funding of $.5 million in the Street department for the street overlay budget, which would overlay approximately two miles of city streets. Also, major capital equipment to be used by the Public Works department was acquired, replacement of audio-video equipment throughout the City, and an update to the comprehensive master plan. Business-type Activities – The City has two enterprise operations, the Water and Wastewater Fund and the Drainage Utility Fund. Total operating revenues of the Water and Sewer fund were $14,789,614 for the fiscal year. Water revenues decreased due to Stage 1 restrictions due to drought conditions that limited outdoor watering to two days a week. Wastewater revenues increased due to a rate increase in December 2013, which passed through a rate increase from the Trinity River Authority, the City’s provider of treated wastewater. The coverage ratio for debt for this fund was 4.25 for the fiscal year, exclusive of transfers. The slight increase in the Drainage Utility Fund’s revenues was due to new residential and commercial construction. Increases in the Water and Wastewater Fund expenses relate to the increase in cost of purchased water and treatment of wastewater from Trinity River Authority. The Authority’s rate increase relates to higher cost for electricity, debt issuance for plant expansion and rehabilitation of aging infrastructure, replacement of system-wide aging infrastructure and compliance with federal water and wastewater mandates. General Fund Budgetary Highlights – The City made revisions to the original appropriations approved by the City Council which resulted in an increase to the General Fund budget of $245,000 for transfers to the Capital Projects Funds ($200,000) for future expenditures for the SH 26 reconstruction and ($45,000) to the Capital Equipment Replacement Fund for building inspection software. Also included with this revision was a City Council adopted authorization to transfer unspent street resurfacing appropriations to the Capital Projects fund and the difference between total revenues and expenses for future street capital projects ($3,308,352). This transfer was funded primarily by the receipt of higher than anticipated sales tax, permit revenues, property tax collections, inspection fees from the ten new subdivisions, ambulance collections, the revenue from the sale of land of former City Hall site, and lower than anticipated expenditures due to vacancies. This accounted for the variance in transfers out from the adopted budget. In Fiscal Year 2013, there was a compensation and classification study performed. There are funds included in the Fiscal Year 2014 budget, for bringing employees to the market minimum at a maximum of ten percent of current salary. Additionally, there was the addition of three firefighter/paramedics, one police property room clerk, and plans examiner. The level of funding for street maintenance and rehabilitation was increased by $500,000 to $2.9 million to address needs on the City’s streets. 25 The General Fund’s overall budgeted revenue increased by $1,724,059. Major increases in General Fund property taxes are due to the declining allocation of the interest and sinking fund rate (Debt Service portion) to repayment of debt and an increase to the operations and maintenance portion of the rate (General fund portion), as the total tax rate was unchanged from the prior year. There was a budgetary and actual increase in sales tax revenue due to improving economic conditions and the opening of Whole Foods in July 2014. Also, revenue increases were derived from the increase in the transfer from the Utility Fund for the administrative and franchise fee that is based upon prior year’s operating revenues due to the implementation of tiered water rates in Fiscal Year 2013. Also included is the $1,000,000 drawdown of General Fund balance, which funded the increase in the street overlay budget. Refer to the General Fund Statement of Revenue, Expenditures and Changes in Fund Balances – Budget and Actual on page 39 of this report for a detailed presentation of the actual General Fund operations compared to both the original and final budget for fiscal year 2014. CAPITAL ASSETS The City of Colleyville’s investment in capital assets for its governmental and business-type activities as of September 30, 2014, amounts to $149,580,080 (net of accumulated depreciation). This investment in capital assets includes land, building, equipment, improvements other than buildings, infrastructure, and construction work in progress. Major capital asset events occurring during the current fiscal year included the following: Capitalized almost $4.9 million in street improvements and developer contributions, primarily with the completion of ten new subdivisions. Capitalized approximately $2.4 million in water and wastewater system developer contributions and, Capitalized approximately $125,000 in park improvements. CITY OF COLLEYVILLE’S CAPITAL ASSETS AT YEAR-END 2014 2013 2014 2013 2014 2013 Land $ 9,178,641 $ 9,293,654 $ 304,839 $ 304,839 $ 9,483,480 $ 9,598,493 Buildings and improvements 46,132,834 45,763,755 53,922 53,922 46,186,756 45,817,677 Equipment 10,773,596 10,806,868 2,133,927 1,981,088 12,907,523 12,787,956 Infrastructure/water distribution sewer collection 84,231,649 79,371,164 72,218,901 69,730,952 156,450,550 149,102,116 Construction in progress 3,831,697 1,796,099 1,715,997 1,114,303 5,547,694 2,910,402 Less: accumulated depreciation ( 48,430,328) ( 45,053,422) ( 32,565,595) ( 30,748,881) ( 80,995,923) ( 75,802,303) Total capital assets $ 105,718,089 $ 101,978,118 $ 43,861,991 $ 42,436,223 $ 149,580,080 $ 144,414,341 Governmental Activities Business-type Activities Totals Additional information on the City’s capital assets can be found in Note 4, pages 57 – 59 of this report. 26 DEBT ADMINISTRATION At the end of the current fiscal year, the City of Colleyville had total bonded debt, notes payable and capital lease obligations of $18,189,038. Of this amount, $7,660,000 represents bonded debt backed by the full faith and credit of the government, $7,330,000 represents bonds secured by sales tax revenues, $1,310,000 represents bonds secured solely by water and sewer revenues, and $915,000 represents bonds secured solely by drainage utility system revenues. The City’s capitalized lease obligations of $974,038 pertain to the prior year lease purchase of a fire pumper truck and mid-mount aerial platform fire apparatus, and P25 radio tower and equipment conversion. OUTSTANDING DEBT AT YEAR-END BONDS, NOTES AND CAPITALIZED LEASE OBLIGATIONS PAYABLE 2014 2013 2014 2013 2014 2013 General obligation bonds and certificates of obligation $ 7,660,000 $ 8,675,000 $ – $ – $ 7,660,000 $ 8,675,000 Sales tax revenue bonds 7,330,000 7,600,000 – – 7,330,000 7,600,000 Revenue bonds payable – – 2,225,000 3,220,000 2,225,000 3,220,000 Capitalized lease obligations 974,038 1,301,624 – – 974,038 1,301,624 $ 15,964,038 $ 17,576,624 $ 2,225,000 $ 3,220,000 $ 18,189,038 $ 20,796,624 Governmental Activities Business-type Activities Totals The City’s General Obligation, Tax and Water Works and Sewer System Certificates of Obligation, and Water Works and Sewer System Revenue Bond ratings are listed below. Standard Fitch ICBA & Poor’s General Obligation Bonds AAA AAA Water Revenue Bonds AAA AAA During Fiscal Year 2014, the City retained its existing General Obligation bond ratings during the biannual ratings surveillance process conducted by the rating agencies. The City’s Water Revenue bonds were upgraded to AAA by Standard & Poor’s and Fitch Ratings reaffirmed their existing AAA rating. These are the highest bond ratings assigned to municipal debt by both agencies. Additional information on the City of Colleyville’s long term-debt can be found in footnote 4 on pages 60 – 65 of this report. 27 ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES The Fiscal Year 2015 General Fund budget including transfers is based on a projected revenue increase of 7.1% as compared to the Fiscal Year 2014 adopted budget. There is a 7.2% increase projected in General Fund property tax revenue, due to a declining portion of the total tax rate committed to debt service repayment (interest and sinking portion) thereby increasing the amount allocated to the General Fund (operations and maintenance portion), and a 4.7% increase in valuation. This is the largest revenue source and comprises 54% of General Fund revenues. The total tax rate for Fiscal Year 2015 is $.3559, which is unchanged since Fiscal Year 2008. Approximately 14% of General Fund revenues are sales taxes, budgeted at a 11.3% increase over the Fiscal Year 2014 budget, due to improving economic conditions and the recent opening of Whole Foods. There continues to be planned utilization of $1,000,000 surplus fund balance in the adopted Fiscal Year 2015 General Fund budget to provide funding for a portion of the $3.0 million street rehabilitation budget. Additionally, there is a utilization of $152,666 of fund balance in the adopted Fiscal Year 2015 Debt Service budget for the third year lease payment on the radio tower and equipment due to the current level of existing fund balance. The use of unassigned fund balance in both funds is contained in the ten year financial plan. In FY 2013, there was a compensation and classification study performed. There continues to be funding included in the Fiscal Year 2015 budget, for bringing the remaining employees to the market minimum at a maximum of ten percent of current salary. Additionally, there is the addition of three firefighter/paramedics, one police officer, and an economic development coordinator. There are technology audio visual upgrades planned for the Municipal Courtroom and Police briefing room and the first phase of a fiber connectivity project between City buildings, to reduce the need for third party leased fiber. Slight revenue growth in the Water and Wastewater Fund will come from additional residential and commercial customers and the continued use of a tiered water rate structure. There was also the incorporation of the pass through of projected Trinity River Authority (TRA) rate increases to maintain the financial stability of the Water and Wastewater Fund in future years. REQUEST FOR INFORMATION The financial report is designed to provide our citizens, customers, investors and creditors with a general overview of the City’s finances. If you have questions about this report or need any additional information, contact Terry Leake, Assistant City Manager/Chief Financial Officer, at 100 Main Street, Colleyville, Texas 76034, or call (817) 503-1115. 28 THIS PAGE INTENTIONALLY LEFT BLANK 29 BASIC FINANCIAL STATEMENTS Governmental Activities Business-type Activities ASSETS Cash and equivalents $ 20,516,799 $ 5,064,510 Investments 15,865,130 7,117,823 Receivables (net of allowances for uncollectibles of $341,247) Accounts 83,105 2,517,940 Property taxes 177,656 – Loans 200,000 – Due from other governments 1,221,332 – Inventories 1,269 135,391 Accrued interest 16,660 9,258 Restricted assets: Cash and equivalents 1,362,728 Capital assets: Land 9,178,641 304,839 Buildings and improvements 46,132,834 53,922 Equipment 10,773,596 2,133,927 Infrastructure/water distribution/sewer collection 84,231,649 72,218,901 Construction in progress 3,831,697 1,715,997 Less: accumulated depreciation ( 48,430,328) ( 32,565,595) Total capital assets 105,718,089 43,861,991 Total assets 143,800,040 60,069,641 DEFERRED OUTFLOWS OF RESOURCES Deferred charge on refunding – 116,835 Total deferred outflows of resources – 116,835 LIABILITIES Accounts payable 1,169,762 795,424 Accrued liabilities 374,439 47,962 Unearned revenues 827 – Accrued interest payable 99,086 13,967 Advances from developers 193,442 69,000 Escrow funds – 26,613 Customer deposits 65,098 442,785 Noncurrent liabilities: Due within one year 1,609,290 705,228 Due in more than one year 15,102,680 1,690,742 Total liabilities 18,614,624 3,791,721 NET POSITION Net investment in capital assets 89,754,051 41,567,161 Restricted: Debt service 831,073 – Court security and technology 109,766 – Grant programs 9,190 – Leisure services 224,064 – Economic development 2,733,995 – Streets and drainage 12,188,836 – Police 1,403,502 – Unrestricted 17,930,939 14,827,594 Total net position $ 125,185,416 $ 56,394,755 The accompanying notes are an integral part of these financial statements. CITY OF COLLEYVILLE, TEXAS STATEMENT OF NET POSITION SEPTEMBER 30, 2014 30 Total Component Units $ 25,581,309 17,473,529 22,982,953 376,099 2,601,045 – 177,656 – 200,000 – 1,221,332 – 136,660 – 25,918 414 1,362,728 – 9,483,480 1,845,976 46,186,756 – 12,907,523 – 156,450,550 8,055,352 5,547,694 – ( 80,995,923) ( 221,374) 149,580,080 9,679,954 203,869,681 27,529,996 116,835 26,120 116,835 26,120 1,965,186 456,744 422,401 – 827 – 113,053 15,394 262,442 – 26,613 – 507,883 – 2,314,518 565,000 16,793,422 3,209,876 22,406,345 4,247,014 131,321,212 5,905,078 831,073 – 109,766 – 9,190 – 224,064 – 2,733,995 – 12,188,836 – 1,403,502 – 32,758,533 17,404,024 $ 181,580,171 $ 23,309,102 31 Functions/Programs Expenses Charges for Services Operating Grants and Contributions Capital Grants and Contributions Primary government Governmental activities: General government $ 4,103,928 $ 15,000 $ 8 ,449 $ – Community development 1,613,311 1,387,329 – – Fire and rescue 4,625,036 377,021 1 1,030 – Leisure services 3,776,068 510,991 3 66,741 511,449 Maintenance 575,696 – – – Municipal court 501,604 1,268,447 – – Police 5,019,343 71,022 1 00,649 – Streets and drainage 4,128,365 347,565 – 5,432,016 Interest on long-term debt 717,045 – – – Total governmental activities 25,060,396 3,977,375 4 86,869 5,943,465 Business-type activities: Water and wastewater 13,238,893 14,789,614 – 2,707,835 Drainage 571,886 939,868 – – Total business-type activities 13,810,779 15,729,482 – 2,707,835 Total primary government $ 38,871,175 $ 19,706,857 $ 4 86,869 $ 8,651,300 Component unit Tax increment financing $ 799,787 $ – $ – $ – Total component unit $ 799,787 $ – $ – $ – General revenues: Taxes: Property taxes, levied for general purposes Property taxes, levied for debt service TIF taxes Sales taxes Franchise taxes Other taxes Investment earnings Miscellaneous Gain on sale of capital assets Transfers Total general revenues and transfers Change in net position Net position – beginning Prior period adjustment Net position – ending The accompanying notes are an integral part of these financial statements. CITY OF COLLEYVILLE, TEXAS STATEMENT OF ACTIVITIES FOR THE YEAR ENDED SEPTEMBER 30, 2014 Program Revenue 32 Governmental Activities Business-type Activities Total Component Units $( 4,080,479) $ – $( 4,080,479) $ – ( 225,982) – ( 225,982) – ( 4,236,985) – ( 4,236,985) – ( 2,386,887) – ( 2,386,887) – ( 575,696) – ( 575,696) – 766,843 – 766,843 – ( 4,847,672) – ( 4,847,672) – 1,651,216 – 1,651,216 – ( 717,045) – ( 717,045) – ( 14,652,687) – ( 14,652,687) – – 4 ,258,556 4,258,556 – – 3 67,982 367,982 – – 4 ,626,538 4,626,538 – ( 14,652,687) 4 ,626,538 ( 10,026,149) – – – – ( 799,787) – – – ( 799,787) 11,800,735 – 11,800,735 – 1,150,097 – 1,150,097 – – – – 4,756,672 6,472,195 – 6,472,195 – 2,172,801 – 2,172,801 – 98,160 – 98,160 – 39,697 2 3,655 63,352 11,142 61,643 – 61,643 – 810,020 4 0,814 850,834 – 1,180,292 ( 1 ,180,292) – – 23,785,640 ( 1 ,115,823) 22,669,817 4,767,814 9,132,953 3 ,510,715 12,643,668 3,968,027 116,211,275 5 2,972,667 169,183,942 19,409,147 ( 158,812) ( 8 8,627) ( 247,439) ( 68,072) $ 125,185,416 $ 5 6,394,755 $ 181,580,171 $ 23,309,102 Net (Expense) Revenue and Changes in Net Position Primary Government 33 General Capital Projects Debt Service ASSETS Cash and cash equivalents $ 3,276,418 $ 8,546,621 $ 902,356 Investments 7,848,839 4,316,555 – Receivables (net of allowances for uncollectibles) Accounts 83,105 – – Taxes 149,987 – 27,669 Loans 200,000 – – Due from other governments 642,282 – 134 Inventories 1,269 – – Accrued interest 9,542 3,230 – Total assets $ 12,211,442 $ 12,866,406 $ 930,159 LIABILITIES Accounts payable $ 622,166 $ 545,400 $ – Accrued liabilities 356,076 – – Unearned revenue 827 – – Advances from developers 47,548 132,170 – Customer deposits 65,098 – – Total liabilities 1,091,715 677,570 – DEFERRED INFLOWS OF RESOURCES Unavailable revenue – property taxes 149,987 – 27,669 Unavailable revenue – municipal fines 15,813 – – Unavailable revenue – ambulance fees 58,505 – – Total deferred inflows of resources 224,305 – 27,669 FUND BALANCES Non-spendable: Inventories 1,269 – – Restricted: Streets and drainage – 12,188,836 – Debt service – – 902,490 Court security and technology – – – Grant programs – – – Leisure services – – – Economic development – – – Police – – – Committed: Strategic incentives 295,198 – – Sales tax incentives 518,338 – – Leisure services – – – Capital projects – – – Assigned: Capital projects – – – Recycling – – – Leisure services – – – Unassigned 10,080,617 – – Total fund balances 10,895,422 12,188,836 902,490 Total liabilities, deferred inflows of resources, and fund balances $ 12,211,442 $ 12,866,406 $ 930,159 Amounts reported for governmental activities in the statement of net assets are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. Other long-term assets are not available to pay for current-period expenditures and, therefore are deferred in the funds. Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds. Net position of governmental activities The accompanying notes are an integral part of these financial statements. CITY OF COLLEYVILLE, TEXAS BALANCE SHEET GOVERNMENTAL FUNDS SEPTEMBER 30, 2014 34 Other Governmental Total Governmental Funds $ 7,791,404 $ 20,516,799 3,699,736 15,865,130 – 83,105 – 177,656 – 200,000 578,916 1,221,332 – 1,269 3,888 16,660 $ 12,073,944 $ 38,081,951 $ 2,196 $ 1,169,762 18,363 374,439 – 827 13,724 193,442 – 65,098 34,283 1,803,568 – 177,656 15,813 – 58,505 – 251,974 – 1,269 – 12,188,836 – 902,490 109,766 109,766 9,190 9,190 224,064 224,064 2,733,995 2,733,995 1,403,502 1,403,502 – 295,198 – 518,338 1,191,200 1,191,200 5,602,036 5,602,036 751,902 751,902 1,627 1,627 12,379 12,379 – 10,080,617 12,039,661 36,026,409 $ 12,073,944 105,718,089 251,974 ( 16,811,056) $ 125,185,416 35 General Capital Projects Debt Service REVENUES Taxes $ 17,471,967 $ – $ 1,154,810 Fees and fines 925,868 – – Licenses and permits 1,090,012 – – Intergovernmental – 550,679 – Charges for services 1,553,714 – – Capital improvement fees – 333,496 – Donations – – – Investment earnings 22,728 2,944 881 Miscellaneous 61,643 – – Total revenues 21,125,932 887,119 1,155,691 EXPENDITURES Current: General government 3,629,590 11,993 – Community development and engineering 1,312,081 130,057 – Fire and rescue 4,159,264 7,500 – Leisure services 2,334,112 1,403 – Maintenance 570,011 – – Municipal court 370,233 – – Police 4,090,489 5,502 – Streets and drainage 1,823,463 232,168 – Debt service: Principal – – 1,342,586 Interest and other charges – – 343,420 Capital outlay 226,680 1,954,134 – Total expenditures 18,515,923 2,342,757 1,686,006 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 2,610,009 ( 1,455,638) ( 530,315) OTHER FINANCING SOURCES (USES) Proceeds from long-term debt, net – – – Payment to bond escrow agent – – – Sale of capital assets 844,956 – – Transfers in 1,116,974 5,211,528 501,182 Transfers out ( 5,498,528) – – Total other financing sources and uses ( 3,536,598) 5,211,528 501,182 NET CHANGE IN FUND BALANCES ( 926,589) 3,755,890 ( 29,133) FUND BALANCES, BEGINNING 11,822,011 8,432,946 931,623 FUND BALANCES, ENDING $ 10,895,422 $ 12,188,836 $ 902,490 The accompanying notes are an integral part of these financial statements. FOR THE YEAR ENDED SEPTEMBER 30, 2014 CITY OF COLLEYVILLE, TEXAS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS 36 Other Governmental Total Governmental Funds $ 3,120,467 $ 21,747,244 117,953 1,043,821 – 1,090,012 6,275 556,954 23,850 1,577,564 – 333,496 918,613 918,613 13,144 39,697 15,000 76,643 4,215,302 27,384,044 105,036 3,746,619 164,451 1,606,589 7,981 4,174,745 366,798 2,702,313 – 570,011 130,794 501,027 611,324 4,707,315 – 2,055,631 – 1,342,586 372,808 716,228 1,069,694 3,250,508 2,828,886 25,373,572 1,386,416 2,010,472 7,330,000 7,330,000 ( 7,600,000) ( 7,600,000) 80,077 925,033 525,650 7,355,334 ( 676,514) ( 6,175,042) ( 340,787) 1,835,325 1,045,629 3,845,797 10,994,032 32,180,612 $ 12,039,661 $ 36,026,409 37 Net change in fund balances – total governmental funds: $ 3,845,797 Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. ( 1,005,501) The net effect of transactions involving capital assets is to increase net position. 4,745,472 Revenues, in the statement of activities, that do not provide current financial resources, are not reported as revenues in the funds. ( 41,492) The issuance of long-term debt (e.g., bonds, leases) provides current financial resources to governmental funds, while the repayment of the principal of longterm debt consumes the current financial resources of governmental funds. 1,599,828 Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. ( 11,151) $ 9,132,953 The accompanying notes are an integral part of these financial statements. FOR THE YEAR ENDED SEPTEMBER 30, 2014 Amounts reported for governmental activities in the Statement of Activities (pages 32 – 33) are different because: CITY OF COLLEYVILLE, TEXAS RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES Change in net position of governmental activities 38 Variance with Final Budget – Actual Positive Original Final Amounts (Negative) REVENUES Taxes $ 16,625,028 $ 16,625,028 $ 17,471,967 $ 846,939 License and permits 738,751 738,751 1,090,012 351,261 Fees and fines 824,500 824,500 925,868 101,368 Charges for services 1,124,494 1,124,494 1,553,714 429,220 Investment earnings 35,000 35,000 22,728 ( 12,272) Other 54,100 54,100 61,643 7,543 Total revenues 19,401,873 19,401,873 21,125,932 1,724,059 EXPENDITURES Current: General government 3,775,235 3,775,235 3,629,590 145,645 Community development and engineering 1,427,061 1,472,061 1,312,081 159,980 Fire and rescue 4,259,224 4,259,224 4,159,264 99,960 Leisure services 2,629,474 2,629,474 2,334,112 295,362 Maintenance 589,135 589,135 570,011 19,124 Municipal court 389,410 389,410 370,233 19,177 Police 4,172,062 4,172,062 4,090,489 81,573 Streets and drainage 3,840,966 3,840,966 1,823,463 2,017,503 Capital outlay 209,400 209,400 226,680 ( 17,280) Total expenditures 21,291,967 21,336,967 18,515,923 2,821,044 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES ( 1,890,094) ( 1,935,094) 2,610,009 4,545,103 OTHER FINANCING SOURCES (USES) Transfers in 1,130,214 1,130,214 1,116,974 ( 13,240) Transfers out ( 242,000) ( 442,000) ( 5,498,528) ( 5,056,528) Sale of capital assets 5,000 5,000 844,956 839,956 Total other financing sources and uses 893,214 693,214 ( 3,536,598) ( 4,229,812) NET CHANGE IN FUND BALANCE ( 996,880) ( 1,241,880) ( 926,589) 315,291 FUND BALANCE, BEGINNING 11,822,011 11,822,011 11,822,011 – FUND BALANCE, ENDING $ 10,825,131 $ 10,580,131 $ 10,895,422 $ 315,291 The notes to the financial statements are an integral part of this statement. Budgeted Amounts CITY OF COLLEYVILLE, TEXAS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 2014 GENERAL FUND 39 Water and Wastewater Drainage Utility Total ASSETS Current assets: Cash and cash equivalents $ 3,787,566 $ 1,276,944 $ 5,064,510 Investments 6,898,260 219,563 7,117,823 Accounts receivable, net of allowances 2,414,044 103,896 2,517,940 Inventories 135,391 – 135,391 Restricted assets: Cash and cash equivalents 1,362,728 – 1,362,728 Total current assets 14,597,989 1,600,403 16,198,392 Non-current assets: Accrued interest receivable 8,967 291 9,258 Capital assets: Land and improvements 304,839 – 304,839 Buildings 53,922 – 53,922 Utility system 68,090,537 4,128,364 72,218,901 Equipment and furniture 1,652,954 480,973 2,133,927 Construction in progress 1,571,392 144,605 1,715,997 Less accumulated depreciation ( 31,193,328) ( 1,372,267) ( 32,565,595) Total non-current assets 40,489,283 3,381,966 43,871,249 Total assets 55,087,272 4,982,369 60,069,641 DEFERRED OUTLOWS OF RESOURCES Deferred charge on refunding 111,818 5,017 116,835 Total deferred outflows of resources 111,818 5,017 116,835 LIABILITIES Current liabilities: Accounts payable 751,458 43,966 795,424 Accrued liabilities 40,889 7,073 47,962 Accrued interest payable 8,675 5,292 13,967 Advances from developers 69,000 – 69,000 Escrow funds 26,613 – 26,613 Customer deposits 442,785 – 442,785 Compensated absences 17,641 2,587 20,228 Revenue bonds payable 460,000 225,000 685,000 Total current liabilities 1,817,061 283,918 2,100,979 Non-current liabilities: Compensated absences 70,562 10,350 80,912 Revenue bonds payable 919,830 690,000 1,609,830 Total non-current liabilities 990,392 700,350 1,690,742 Total liabilities 2,807,453 984,268 3,791,721 NET POSITION Net investment in capital assets 39,100,486 2,466,675 41,567,161 Unrestricted 13,291,151 1,536,443 14,827,594 Total net position $ 52,391,637 $ 4,003,118 $ 56,394,755 The accompanying notes are an integral part of these financial statements. SEPTEMBER 30, 2014 Enterprise Funds CITY OF COLLEYVILLE, TEXAS STATEMENT OF NET POSITION PROPRIETARY FUNDS 40 Water and Wastewater Drainage Utility Total OPERATING REVENUES Metered water sales $ 10,481,393 $ – $ 10,481,393 Wastewater service charges 3,459,501 – 3,459,501 Drainage service charges – 927,356 927,356 Other charges and services 821,258 12,512 833,770 Miscellaneous 27,462 – 27,462 Total operating revenues 14,789,614 939,868 15,729,482 OPERATING EXPENSES Personnel services 1,447,666 298,866 1,746,532 Maintenance and contractual services 9,670,393 92,399 9,762,792 Materials and supplies 213,690 25,692 239,382 Depreciation and amortization 1,867,549 120,803 1,988,352 Total operating expenses 13,199,298 537,760 13,737,058 OPERATING INCOME 1,590,316 402,108 1,992,424 NON-OPERATING REVENUES (EXPENSES) Interest and investment revenues 22,107 1,548 23,655 Interest expense and fiscal charges ( 39,595) ( 34,126) ( 73,721) Gain (loss) on disposal of property 40,814 – 40,814 Total non-operating revenues (expenses) 23,326 ( 32,578) ( 9,252) INCOME BEFORE CONTRIBUTIONS AND TRANSFERS 1,613,642 369,530 1,983,172 Capital contributions 2,707,835 – 2,707,835 Transfers out ( 1,161,260) ( 19,032) ( 1,180,292) CHANGE IN NET POSITION 3,160,217 350,498 3,510,715 TOTAL NET POSITION, BEGINNING 49,299,109 3,673,558 52,972,667 PRIOR PERIOD ADJUSTMENT ( 67,689) ( 20,938) ( 88,627) TOTAL NET POSITION, ENDING $ 52,391,637 $ 4,003,118 $ 56,394,755 The accompanying notes are an integral part of these financial statements. CITY OF COLLEYVILLE, TEXAS STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2014 Enterprise Funds 41 Water and Drainage Wastewater Utility Totals CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers $ 1 4,790,412 $ 942,652 $ 1 5,733,064 Cash paid to suppliers for goods and services ( 1 0,116,720) ( 75,191) ( 1 0,191,911) Cash paid to employees for services ( 1 ,418,145) ( 301,747) ( 1 ,719,892) Net cash provided by operating activities 3 ,255,547 565,714 3 ,821,261 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers out ( 1 ,161,260) ( 19,032) ( 1 ,180,292) Net cash used for noncapital financing activities ( 1 ,161,260) ( 19,032) ( 1 ,180,292) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets ( 5 96,456) ( 103,113) ( 6 99,569) Gain/(loss) on sale of asset 4 0,814 – 4 0,814 Principal paid on debt ( 7 75,000) ( 220,000) ( 9 95,000) Interest paid on debt ( 3 9,595) ( 34,126) ( 7 3,721) Net cash used for capital and related financing activities ( 1 ,370,237) ( 357,239) ( 1 ,727,476) CASH FLOWS FROM INVESTING ACTIVITIES (Purchase) sale of investments ( 7 67,983) ( 102,665) ( 8 70,648) Earnings on investments 2 2,107 1,548 2 3,655 Net cash provided (used) by investing activities ( 7 45,876) ( 101,117) ( 8 46,993) NET INCREASE IN CASH AND CASH EQUIVALENTS ( 2 1,826) 88,326 6 6,500 CASH AND CASH EQUIVALENTS, BEGINNING 5 ,172,120 1,188,618 6 ,360,738 CASH AND CASH EQUIVALENTS, ENDING $ 5 ,150,294 $ 1,276,944 $ 6 ,427,238 Enterprise Funds CITY OF COLLEYVILLE, TEXAS STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2014 42 Water and Drainage Wastewater Utility Totals Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income $ 1 ,590,316 $ 402,108 $ 1 ,992,424 Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities: Depreciation and amortization expense 1 ,867,549 120,803 1 ,988,352 Changes in assets and liabilities: Decrease (increase) in assets: Accounts receivable 7 98 2,784 3 ,582 Inventory 3 1,926 – 3 1,926 Accrued interest receivable ( 2 ,040) ( 213) ( 2 ,253) Increase (decrease) in liabilities: Accounts payable ( 1 97,464) 42,212 ( 1 55,252) Accrued liabilities ( 2 4,681) ( 1,794) ( 2 6,475) Compensated absences payable ( 4 ,840) 1,087 ( 3 ,753) Customer deposits ( 1 ,299) – ( 1 ,299) Accrued interest payable ( 4 ,718) ( 1,273) ( 5 ,991) Net cash provided by operations $ 3 ,255,547 $ 565,714 $ 3 ,821,261 Noncash investing, capital, and financing activities: Contributions of capital assets $ 2 ,707,835 $ – $ 2 ,707,835 The notes to the financial statements are an integral part of this statement. CITY OF COLLEYVILLE, TEXAS STATEMENT OF CASH FLOWS PROPRIETARY FUNDS Enterprise Funds FOR THE YEAR ENDED SEPTEMBER 30, 2014 (Continued) 43 Agency Fund ASSETS Cash and investments $ 25,511 Total assets $ 25,511 LIABILITIES Due to other agencies and individuals $ 25,511 Total liabilities $ 25,511 The accompanying notes are an integral part of these financial statements. CITY OF COLLEYVILLE, TEXAS STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS SEPTEMBER 30, 2014 44 45 CITY OF COLLEYVILLE, TEXAS NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2014 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Colleyville Home Rule Charter was adopted by the voters at an election held on January 15, 1977. The City operates under a Council-Manager form of government. The accounting policies of the City of Colleyville, Texas (the “City”) conform to generally accepted accounting principles as applicable to governmental units. The following is a summary of the more significant of such policies: A. Reporting Entity As required by generally accepted accounting principles, these financial statements present the government and its component units, entities for which the government is considered to be financially accountable. Blended component units, although legally separate entities are, in substance, part of the government’s operations and so data from these units are combined with data of the primary government. Each directly presented component unit, on the other hand, is reported in a separate column in the combined financial statements to emphasize it is legally separate from the government. Each blended component unit has a September 30 year-end. Blended Component Unit – The Colleyville Economic Development Corporation (CEDC) was incorporated on September 3, 1996, as a nonprofit industrial development corporation under the Development Corporation Act of 1979 (“Act”). The CEDC operates under a seven (7) member Board of Directors appointed by the City Council. Each of the directors shall be a resident of the City. The Corporation is organized exclusively for the purposes of benefiting and accomplishing public purposes of and to act on behalf of, the City, and the specific purposes for which the Corporation is organized. This includes municipal park improvements, the purchase of land and improvements for additional neighborhood parks, the construction of a community center and library. Although it is legally separate from the City, the CEDC is reported as if it were part of the primary government, because CEDC is financing public improvements and the City is the primary beneficiary of the services provided. Blended Component Unit – Colleyville Crime Control and Prevention District (the District) was formed under Chapter 363 of the Texas Local Government Code, the Crime Control and Prevention District Act. The District is organized to act on behalf of the City for financing, development of crime control throughout the City. The District is governed by a sevenmember board consisting of all members of the City Council. The District is reported as a part of the primary government because it provides services entirely for the City. 46 Discretely Presented Component Unit – Colleyville Tax Increment Financing Reinvestment Zone Number One (the TIF) was formed to make public improvements, under the authority of the Tax Increment Financing Act. The TIF is governed by a nine-member board consisting of five members appointed by the City Council and one member each appointed by the four other participating taxing entities. The primary government appoints a voting majority of the unit’s governing body and the City has a potential economic benefit from this unit. Therefore, the TIF is presented in the accompanying financial statements as a discretely presented component unit. Complete financial statements for the TIF may be obtained from the City of Colleyville Finance Department, 100 Main Street, Colleyville, Texas 76034. B. Government-wide Fund Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. 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 certain legally separate component units for which the primary government is financially accountable. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment 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 funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual Enterprise Funds are reported as separate columns in the fund financial statements. C. 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 and fiduciary fund financial statements, except for Agency Funds, which have no measurement focus. 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. 47 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 government 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 and claims and judgments, are recorded only when payment is due. Property taxes, franchise taxes, sales taxes, 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. GOVERNMENTAL FUNDS Governmental Funds are those through which most governmental functions of the City are financed. The acquisition, use, and balances of the City’s expendable financial resources and the related liabilities (except those accounted for in the proprietary fund type) are accounted for through governmental funds. The measurement focus is upon determination of changes in financial position, rather than upon net income determination. The following are the City’s governmental fund types: 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 except those required to be accounted for in another fund. The Debt Service Fund – is used to account for the acquisition of resources for, and the payment of, general long-term debt principal and interest, and related costs. The Capital Projects Fund – is used to account for financial resources to be used for the acquisition or construction of general major capital facilities. Financing is provided primarily by the sale of general obligation bonds and developer contributions. Additionally, the City also reports the following fund type: The Special Revenue Fund – accounts for the revenues and expenditures associated with a special project or purpose. PROPRIETARY FUNDS Proprietary Funds are used to account for activities that are similar to those often found in the private sector. The measurement focus is upon determination of net income and capital maintenance. 48 The City reports the following major proprietary funds: The Water and Wastewater Fund – is used to account for operations (a) that are financed and operated in a manner similar to private business enterprises – where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the governing body has decided that periodic determination of revenue earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. This fund is used to account for water and wastewater operations. The Drainage Utility Fund – is used to account for the establishment and maintenance of drainage facilities within the municipal boundaries of the City. All activities necessary to provide such facilities are accounted for in this fund, included but not limited to, administration, operations, maintenance, billing and collections. FIDUCIARY FUNDS Agency Fund – Fiduciary Funds are used to account for assets held by the City in a trustee capacity or as an agent on behalf of others. Agency funds are custodial in nature and do not present results of operations or have a measurement focus. The City has two agency funds: Employee Activity and the Sesquicentennial Fund. These funds are held for the benefit of City employees and to benefit the City’s historical purposes. As a general rule, the effect of interfund activity has been eliminated from the governmentwide financial statements. Exceptions to this general rule are charges between the City’s water and wastewater function and various other functions of the government. Elimination of these charges would distort the direct costs and program revenue reported for the various functions concerned. Amounts reported as program revenues include: 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenue. Likewise, general revenue includes all taxes. 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 for Enterprise Funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenue and expenses not meeting this definition are reported as nonoperating revenue and expenses. 49 D. Cash and Cash Equivalents For purposes of the statement of cash flows, the Enterprise Fund considers all highly liquid investments (investments with original maturities less than 90 days, including restricted assets) to be cash equivalents. E. Investments In accordance with GASB Statement No. 31, the City’s general policy is to report money market investments and short-term participating interest-earning investment contracts at amortized cost and to report nonparticipating interest-earning investment contracts using a cost-based measure. However, if the fair value of an investment is significantly affected by the impairment of the credit standing of the issuer or by other factors, it is reported at fair value. All other investments are reported at fair value unless a legal contract exists which guarantees a higher value. The term “short-term” refers to investments, which have a remaining term of one year or less at time of purchase. The term “nonparticipating” means that the investment’s value does not vary with market interest rate changes. F. 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 either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the noncurrent portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds.” Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources. The allowance for utility receivables is the total of final bills that have been sent out by the City. Final bills are bills that have been sent out to customers that have notified the City of a discontinuation of service. Ambulance receivables in excess of 180 days comprise the ambulance allowance for uncollectables. The allowance for uncollectable accounts for capias warrants is set at 90% of outstanding receivables. Property taxes are levied on October 1 and attach as an enforceable lien on property as of January 1. Statements are mailed on October 1, or as soon thereafter as possible, and are due upon receipt. All unpaid taxes become delinquent if not paid before February 1 of the following year. G. Inventories Inventories in the Enterprise Fund are valued at cost (first-in, first-out method). 50 H. Capital Assets Capital assets, which include property, plant, 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. The City defines capital assets as assets with an initial, individual cost of more than $5,000 (amount not rounded) and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets’ lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Property, plant and equipment is depreciated using the straight-line method over the following estimated useful lives: Assets Years Buildings 15 – 50 Improvements 20 – 50 Equipment 5 – 10 Infrastructure (streets and drainage) 50 Water distribution/sewer collection 5 – 40 I. Compensated Absences City employees are granted vacation and sick pay in varying amounts. In the event of termination, an employee is paid for all accumulated, unused vacation. Vacation pay is accrued as it vests to the employee. Sick pay is recorded when paid or upon retirement when a maximum of 90 days is paid. The accrued sick pay is not recorded, as the City’s policy is not to compensate employees upon separation of services with the City, except for retirement, and such amounts are not considered material. All vacation pay is accrued when incurred in the government-wide and proprietary fund financial statements. J. Long-term Obligations In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. In the fund financial statements, the face amount of debt issued is reported as other financing sources for the governmental fund types. For governmental fund types, bond premiums and discounts, as well as issuance costs, are recognized during the current period. Bond proceeds are reported as another financing source. Issuance costs, even if withheld from the actual net proceeds received, are reported as expenditures. For proprietary fund types, bond premiums and discounts, as well as issuance costs, are charged to current operations rather than being deferred and amortized due to the relatively immaterial effect on the basic financial statements taken as a whole. 51 K. Fund Balance Classification The governmental fund financial statements present fund balances based on classifications that comprise a hierarchy that is based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the respective governmental funds can be spent. The classifications used in the governmental fund financial statements are as follows: Nonspendable: This classification includes amounts that cannot be spent because they are either (a) not in spendable form or (b) are legally or contractually required to be maintained intact. Nonspendable items are not expected to be converted to cash or are not expected to be converted to cash within the next year. Restricted: This classification includes amounts for which constraints have been placed on the use of the resources either (a) externally imposed by creditors, grantors, contributors, or laws or regulations of other governments, or (b) imposed by law through constitutional provisions or enabling legislation. Committed: This classification includes amounts that can be used only for specific purposes pursuant to constraints imposed by board resolution of the City Council, the City’s highest level of decision making authority. These amounts cannot be used for any other purpose unless the Council removes or changes the specified use by taking the same type of action that was employed when the funds were initially committed. This classification also includes contractual obligations to the extent that existing resources have been specifically committed for use in satisfying those contractual requirements. Assigned: This classification includes amounts that are constrained by the City’s intent to be used for a specific purpose but are neither restricted nor committed. This intent can be expressed by the City’s Assistant City Manager/Chief Financial Officer. Unassigned: This classification includes the residual fund balance for the General Fund. The unassigned classification also includes negative residual fund balance of any other governmental fund that cannot be eliminated by offsetting of assigned fund balance amounts. When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available, the City considers restricted funds to have been spent first. When an expenditure is incurred for which committed, assigned, or unassigned fund balances are available, the City considers amounts to have been spent first out of committed funds, then assigned funds, and finally unassigned funds. L. Minimum Unassigned Fund Balance It is the goal of the City to achieve and maintain an unassigned fund balance in the General Fund equal to three months of that year’s budgeted expenditures for both the General and Utility Funds. The City Council may declare a fiscal emergency and withdraw any amount of the unassigned General and Utility Funds’ balances for purposes of addressing the fiscal emergency. Any such action must also provide for necessary appropriations to restore the designated fund balance to the balance within a three-year period. 52 M. Net Position Flow Assumption Sometimes the City will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted – net position and unrestricted – net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s policy to consider restricted – net position to have been depleted before unrestricted – net position is applied. N. Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The government only has one item that qualifies for reporting in this category. It is the deferred charge on refunding reported in the governmentwide 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. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The government has only one type of item, which arises only under a modified accrual basis of accounting, that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from two sources: property taxes, municipal fines and ambulance fees. These amounts are deferred and recognized as an inflow of resouces in that period that the amounts become available. O. Estimates The preparation of financial statements, in conformity with generally accepted accounting principles, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual amounts could differ from those estimates. P. Risk Management Insurance coverage for property, liability and workers’ compensation is provided by the Texas Municipal League Intergovernmental Risk Pool, a state insurance pool. Contributions to the Risk Pool for workers’ compensation are based on the City’s past claims history. The Risk Pool is self-sustaining through members’ contributions and maintains insurance to limit risk of loss with an external insurance company. Settlement claims have not exceeded aggregate limits in the past three fiscal years. 53 2. RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS Explanation of Certain Differences Between the Governmental Fund Balance Sheet and the Government-wide Statement of Net Position The governmental fund balance sheet includes a reconciliation between fund balance – total governmental funds and net position – governmental activities as reported in the governmentwide statement of net position. One element of that reconciliation explains, “Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds.” The details of this $(16,811,056) difference are as follows: Bonds payable $( 14,990,000) Capital leases payable ( 974,038) Accrued interest payable ( 99,086) Compensated absences ( 747,932) Net adjustment to reduce fund balance – total governmental funds to arrive at net assets – governmental activities $( 16,811,056) Explanation of Certain Differences Between the Governmental Fund Statement of Revenue, Expenditures and Changes in Fund Balances and the Government-wide Statement of Activities The governmental fund statement of revenue, expenditures and changes in fund balances includes a reconciliation between net changes in fund balances – total governmental fund and changes in net position of governmental activities as reported in the government-wide statement of activities. One element of that reconciliation explains, “Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense.” The details of this $(1,005,501) difference are as follows: Capital outlay $ 3,064,252 Depreciation expense ( 4,069,753) Net adjustment to increase net changes in fund balances – total governmental funds to arrive at changes in net assets of governmental activities $( 1,005,501) Another element of that reconciliation states, “Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds.” The details of this $(41,492) difference are as follows: Property taxes $( 53,256) Ambulance revenue 1,395 Adjudicated fines 10,369 Net adjustment to increase net changes in fund balances – total governmental funds to arrive at changes in net assets of governmental activities $( 41,492) 54 Another element of that reconciliation states, “The issuance of long-term debt (e.g., bonds, leases) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds.” Neither transaction, however, has any effect on net position. The details of this $1,599,828 difference are as follows: Principal payments and refundings $ 1,329,828 Debt refunding – proceeds ( 7,330,000) Payment to escrow agent 7,600,000 Net adjustment to reduce fund balance -total governmental funds to arrive at net assets – governmental activities $ 1,599,828 Another element of that reconciliation states, “Some expenses reported in the statement of activities do not require the use of current financial resources, and therefore are not reported as expenditures in governmental funds.” The details of this ($11,151) difference are as follows: Compensated absences $( 23,092) Accrued interest 11,941 Net adjustment to decrease net changes in fund balances – total governmental funds to arrive at changes in net assets of governmental activities $( 11,151) 3. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY A. Budgetary Information The City Council follows these procedures in establishing budgetary data reflected in the basic financial statements: (1) Prior to September 1, 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) Public hearings are conducted to obtain taxpayer comments. (3) Prior to September 30, the budget is legally enacted through passage of an ordinance. (4) The City Manager is authorized to transfer budgeted amounts between departments within any fund; however, any revisions that alter the total expenditures of any fund must be approved by the City Council. (5) Formal budgetary integration is employed as a management control device during the year for the General, Debt Service, and Enterprise Funds. Budgetary control is maintained at the fund level. 55 Internal budgets are prepared and reviewed by the City Council for expenditures of Special Revenue Funds. These budgeted expenditures are not formally adopted by the City Council. No budgets were prepared for revenue of these funds for the year ended September 30, 2014. (6) Budgets for the General and the Debt Service Funds are adopted on a basis consistent with generally accepted accounting principles (GAAP). Formal budgeted amounts are as amended by the City Council for the General, Debt Service and Enterprise Funds. (7) Budgetary data for the Capital Projects Fund has not been presented in the accompanying basic financial statements, as such funds are budgeted over the life of the respective project and not on an annual basis. Accordingly, formal budgetary integration of the Capital Projects Fund is not employed and comparison of actual results of operations to budgetary data for such fund is not presented. (8) Budgetary data for the Enterprise and Drainage Utility Funds has not been presented since the reporting on such budgets is not legally required. Expenditures Over Appropriations Capital Outlay expenditures in the general government function exceeded appropriations by $17,280. This overage was funded by under spending in other functions. 4. DETAILED NOTES ON ALL FUNDS Deposits and Investments As of September 30, 2014, the City had the following investments: Fair Weighted Average Investment Type Value Maturity (Days) LOGIC $ 23,826,230 59 U. S. Treasuries and Agencies 23,149,366 372 Total fair value $ 46,975,596 56 The Public Funds Investment Act (Government Code Chapter 2256) contains specific provisions in the areas of investment practices, management reports and establishment of appropriate policies. Among other things, it requires the City to adopt, implement, and publicize an investment policy. That policy must address the following areas: (1) safety of principal and liquidity, (2) portfolio diversification, (3) allowable investments, (4) acceptable risk levels, (5) expected rates of return, (6) maximum allowable stated maturity of portfolio investments, (7) maximum average dollar-weighted maturity allowed based on the stated maturity date for the portfolio, (8) investment staff quality and capabilities, and (9) bid solicitation preferences for certificates of deposit. Statutes authorize the City to invest in (1) obligations of the U. S. Treasury, certain U. S. agencies, and the State of Texas; (2) certificates of deposit, (3) certain municipal securities, (4) money market savings accounts, (5) repurchase agreements, (6) bankers acceptances, (7) Mutual Funds, (8) investment pools, (9) guaranteed investment contracts, and (10) common trust funds. The Act also requires the City to have independent auditors perform test procedures related to investment practices as provided by the Act. The City is in substantial compliance with the requirements of the Act and with local policies. The City’s investment pools are 2a7-like pools. A 2a7-like pool is one which is not registered with the Securities and Exchange Commission (“SEC”) as an investment company, but nevertheless has a policy that it will, and does, operate in a manner consistent with the SEC’s Rule 2a7 of the Investment Company Act of 1940. Interest Rate Risk. In accordance with its investment policy, the government manages its exposure to declines in fair market values by limiting the average dollar weighted maturity of its investment portfolios to a maximum of 540 days. Custodial Credit Risk. The City maintains a cash and investment pool that combines cash of the various funds in order to maximize investment opportunities. The City’s policy and state statutes require that all deposits in financial institutions be insured by the Federal Depository Insurance Corporation (FDIC) or fully collateralized as per the Public Funds Collateral Act. The City’s deposits were fully insured or collateralized as required by state statutes as of September 30, 2014. Credit Risk. It is the City’s policy to limit its investments to investment types with an investment quality rating not less than A or its equivalent by a nationally recognized statistical rating organization. The City’s investment pools are rated as follows by Standard & Poor’s Investors Service. LOGIC AAAm U. S. Treasuries and Agencies AA+ 57 Receivables Receivables as of year-end for the government’s individual major funds, nonmajor funds and enterprise funds in the aggregate, including the applicable allowances for uncollectible accounts, are as follows: Capital Debt Nonmajor Water and Drainage General Projects Service Funds Wastewater Utility Total Receivables: Accounts $ 555,973 $ – $ – $ – $ 2,440,124 $ 103,896 $ 3,099,993 Taxes 149,987 – 27,669 – – – 177,656 Due from other governments 642,282 – 134 578,916 – – 1,221,332 Loans 200,000 – – – – – 200,000 Accrued interest 9,542 3,230 – 3,888 8,967 291 25,918 Gross receivables 1,557,784 3,230 27,803 582,804 2,449,091 104,187 4,724,899 Less: allowance for uncollectibles ( 472,868) – – – ( 26,080) – ( 498,948) Net total receivables $ 1,084,916 $ 3,230 $ 27,803 $ 582,804 $ 2,423,011 $ 104,187 $ 4,225,951 Governmental Funds Enterprise Funds The City’s property tax is levied each October 1 on the assessed value listed as of the prior January 1 for all real property and certain personal property located in the City. Tax liens attach as of January 1. The assessed value, net of exemptions, upon which the fiscal 2014 levy was based, was $3,915,488,086. Property taxes are limited by the Texas constitution to $2.50 per $100 of assessed valuation and by City Charter to $1.50 per $100 valuation. Also, the tax rate set per budget year shall not result in property tax revenue increase greater than seven percent of the total property tax revenue collected in the preceding budget year, adjusted for new construction, unless authorized by the voters of the City at a special election. The combined tax rate to finance general governmental service and debt service for the year ended September 30, 2014, was $.3559 per $100 of assessed valuation. Taxes are due by January 31 following the levy date. Tax collections, including related penalties and interest, was $13,004,088 for the year ended September 30, 2014. Property taxes receivable at September 30, 2014, were $177,656. The appraisal of property within the City is the responsibility of a countywide appraisal district as required by legislation passed by the Texas Legislature. The appraisal district is required under such legislation to assess all property within the appraisal district on the basis of 100% of its appraised value and is prohibited from applying any assessment ratios. The value of property within the appraisal district must be reviewed every three 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. 58 Capital Assets Capital asset activity for the year ended September 30, 2014, was as follows: Primary Government Beginning Ending Balance Increases Decreases Balance Governmental activities: Capital assets, not being depreciated: Land $ 9,293,654 $ – $( 115,013) $ 9,178,641 Construction in progress 1,796,099 2,056,132 ( 20,534) 3,831,697 Total assets not being depreciated 11,089,753 2,056,132 ( 135,547) 13,010,338 Capital assets, being depreciated: Buildings and improvements 45,763,755 369,079 – 46,132,834 Machinery and equipment 10,806,868 581,083 ( 614,355) 10,773,596 Infrastructure 79,371,164 4,860,485 – 84,231,649 Total capital assets being depreciated 135,941,787 5,810,647 ( 614,355) 141,138,079 Less accumulated depreciation: Buildings and improvements ( 14,468,175) ( 1,478,711) – ( 15,946,886) Machinery and equipment ( 7,826,632) ( 905,809) 692,848 ( 8,039,593) Improvements other than buildings ( 22,758,615) ( 1,685,234) – ( 24,443,849) Total accumulated depreciation ( 45,053,422) ( 4,069,754) 692,848 ( 48,430,328) Total capital assets being depreciated, net 90,888,365 1,740,893 78,493 92,707,751 Governmental activities capital assets, net $ 101,978,118 $ 3,797,025 $( 57,054) $ 105,718,089 Beginning Ending Balance Increases Decreases Balance Business-type activities: Capital assets, not being depreciated: Land $ 304,839 $ – $ – $ 304,839 Construction in progress 1,114,303 601,694 – 1,715,997 Total assets not being depreciated 1,419,142 601,694 – 2,020,836 Capital assets, being depreciated: Buildings and improvements 53,922 – – 53,922 Machinery and equipment 1,981,088 317,761 ( 164,922) 2,133,927 Improvements other than buildings 69,730,952 2,487,949 – 72,218,901 Total capital assets being depreciated 71,765,962 2,805,710 ( 164,922) 74,406,750 Less accumulated depreciation: Buildings and improvements ( 48,951) ( 622) – ( 49,573) Machinery and equipment ( 2,565,370) ( 186,968) 164,922 ( 2,587,416) Improvements other than buildings ( 28,134,560) ( 1,794,046) – ( 29,928,606) Total accumulated depreciation ( 30,748,881) ( 1,981,636) 164,922 ( 32,565,595) Total capital assets being depreciated, net 41,017,081 824,074 – 41,841,155 Business-type activities capital assets, net $ 42,436,223 $ 1,425,768 $ – $ 43,861,991 59 Beginning Ending Balance Increases Decreases Balance Component unit: Capital assets, not being depreciated: Construction in progress $ 5,893,512 $ 2,161,840 $ – $ 8,055,352 Total assets not being depreciated 5,893,512 2,161,840 – 8,055,352 Capital assets, being depreciated: Improvements other than buildings $ 1,808,520 $ 37,456 $ – $ 1,845,976 Total capital assets being depreciated 1,808,520 37,456 – 1,845,976 Less accumulated depreciation: Improvements other than buildings $( 180,852) $( 40,522) $ – $( 221,374) Total accumulated depreciation ( 180,852) ( 40,522) – ( 221,374) Total capital assets being depreciated, net 1,627,668 ( 3,066) – 1,624,602 Component unit capital assets, net $ 7,521,180 $ 2,158,774 $ – $ 9,679,954 Depreciation expense was charged to functions/programs of the primary government as follows: Governmental activities: General government $ 410,956 Community Development 4,873 Fire and rescue 445,486 Leisure services 1,070,645 Maintenance 5,029 Police 306,610 Streets and drainage 1,826,154 Total depreciation expense – governmental activities $ 4,069,753 Business-type activities: Water and wastewater $ 1,861,548 Drainage utility 120,088 Total depreciation expense – business-type activities $ 1,981,636 Construction Commitments The government has active construction projects as of September 30, 2014. The major projects are listed as follows: Remaining Project Spent-to-date Commitment Jackson/Cheek Sparger roundabout $ 1,730,538 $ 422,985 Hwy 26 waterline/sewerline relocation project 624,875 2,344,985 Total $ 2,355,413 $ 2,767,970 60 Interfund Transactions The composition of interfund transfers as of September 30, 2014, is as follows: Interfund Transfers Nonmajor Capital Debt Government General Projects Service Funds Total Transfer Out: General $ – $ 5,211,528 $ – $ 287,000 $ 5,498,528 Nonmajor governmental – – 501,182 175,332 676,514 Drainage fee – – – 19,032 19,032 Water and wastewater 1,116,974 – – 44,286 1,161,260 Total Transfers Out $ 1,116,974 $ 5,211,528 $ 501,182 $ 525,650 $ 7,355,334 Transfer In The transfer of $1,116,974 from the Utility Fund to the General Fund represents the 2014 Administrative transfer and the franchise fee based on gross water and wastewater revenue of the prior year’s audited financial statements. The transfer of $5,498,528 from the General Fund to the Capital Projects and nonmajor governmental funds represents transfers for capital replacement. The transfer of $501,182 from the Crime District to the Debt Service Fund is for the repayment of debt. All principal and interest is paid from the Debt Service Fund’s bank account. Long-term Liabilities General Obligation Bonds The government issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds have been issued for governmental activities. The original amount of general obligation bonds issued in prior years was $29,315,000. General obligation bonds are direct obligations and pledge the full faith and credit of the government. These bonds generally are issued as 20-year serial bonds with equal amounts of principal maturing each year. General obligation bonds currently outstanding are as follows: Purpose Interest Rates Amount Governmental activities 2% – 5% $ 14,990,000 $ 14,990,000 61 Long-term liability activity for the year ended September 30, 2014, was as follows: Balance Balance Amounts September 30, September 30, Due Within 2013 Additions Retirements Refunded 2014 One Year Governmental activities General obligation bonds and certificates of obligation $ 8,675,000 $ – $ 1,015,000 $ – $ 7,660,000 $ 740,000 Premium on bonds 4,593 – 4,593 – – – Sales tax revenue bonds 7,623,186 7,330,000 23,186 7,600,000 7,330,000 395,000 Capital lease obligations 1,301,624 – 327,586 – 974,038 324,704 Compensated absences 724,840 375,359 352,267 – 747,932 149,586 Total governmental activities 18,288,706 7,705,359 1,682,095 7,600,000 16,711,970 1,609,290 Business-type activities Revenue bonds and certificates of obligation 3,220,000 – 995,000 – 2,225,000 685,000 Premium on bonds 79,805 – 9,975 – 69,830 – Compensated absences 104,893 43,094 46,847 – 101,140 20,228 Total business-type activities 3,404,698 43,094 1,051,822 – 2,395,970 705,228 Total primary government $ 21,693,404 $ 7,748,453 $ 2,733,917 $ 7,600,000 $ 19,107,940 $ 2,314,518 Component unit Tax increment financing fund revenue bonds $ 4,225,000 $ – $ 555,000 $ – $ 3,670,000 $ 565,000 Bond premium 125,852 – 20,976 – 104,876 – Total component unit $ 4,319,508 $ – $ 544,632 $ – $ 3,774,876 $ 565,000 For the governmental activities, compensated absences are generally liquidated by the General Fund. 62 Governmental activities long-term liabilities at September 30, 2014, consisted of the following: $2,915,000 Series 2006 General Obligation Refunding bonds due in annual installments of $25,000 to $540,000 through February 15, 2019; interest at 3.64%. 2,475,000 $4,325,000 Series 2007 General Obligation Bonds due in annual installments of $50,000 to $555,000 through February 15, 2027; interest at 4.00% to 5.00%. 4,275,000 $1,435,000 Series 2011 General Obligation Refunding Bonds due in annual installments of $135,000 to $800,000 through February 15, 2020; interest at 2.00% to 4.00%. 910,000 Total General Obligation Bonds and Certificates of Obligation $ 7,660,000 General obligation bonds and certificates of obligation serviced by property tax revenue: $9,570,000 Series 2013 Colleyville Economic Development Corporation Refunding and Improvement Sales Tax Revenue Bonds due in annual installments of $340,000 to $635,000 through February 15, 2029; interest at 2.88% $ 7,330,000 Total Revenue Bonds $ 7,330,000 The government issued $7,330,000 of sales tax revenue refunding bonds to provide resources to purchase U. S. Government State and Local Government securities that were placed in an irrevocable trust for the purchase of generating resources for all future debt service payments of $7,600,000 of sales tax revenue refunding. As a result, the refunded bonds are considered to be defeased and the liability has been removed from the governmental activities column of the statement of net position. The reacquisition price exceeded the net carrying amount of the old debt by $270,000. This amount is being netted against the new debt and amortized over the remaining life of the new debt, which is shorter than the life of the old debt issued. This advance refunding was undertaken to reduce total debt service payments over the next 15 years by $693,082 and resulted in an economic gain of $539,838. The funds utilized for the repayment of long-term liabilities for governmental activities are the Debt Service Fund, the Crime District Fund and the Colleyville Economic Development Corporation. The City’s defeased debt as of September 30, 2014, was $10,770,000. Business-type activities long-term liabilities at September 30, 2014, consisted of the following: $1,890,000 Series 2010 Waterworks and Wastewater System Refunding Bonds due in annual installments of $155,000 to $580,000 through January 1, 2018; interest at 2.00% – 3.00%. 1,310,000 Total Water and Wastewater Fund $ 1,310,000 Water and Wastewater Fund: 63 Drainage Utility Fund: $1,135,000 Series 2011 Waterworks and Wastewater System Refunding Bonds due in annual installments of $105,000 to $225,000 through February 15, 2021; interest at 3.47%. $ 915,000 Total Drainage Utility Fund $ 915,000 Total Business-type activities $ 2,225,000 The ordinances authorizing the issuance of Waterworks and Wastewater System Revenue Bonds created the Interest and Sinking Fund and Reserve Fund. The gross revenue of the waterworks and wastewater system, after deduction of reasonable expenses of operations and maintenance, are pledged to such funds in amounts equal to the total annual principal and interest requirements of the bonds and amounts required to maintain the Reserve Fund. At September 30, 2014, the City was in compliance with these requirements. The City’s component unit, the Tax Increment Financing District, long-term liabilities at September 30, 2014, consisted of the following: $4,225,000 Series 2011 Refunding Bonds due in installments of $490,000 to $665,000 beginning in 2012 through February 15, 2020; interest at 2.0% to 4.0%. $ 3,670,000 Total Tax Increment Financing District $ 3,670,000 Tax Increment Financing District September 30, Principal Interest Principal Interest 2015 $ 740,000 $ 278,384 $ 395,000 $ 205,416 2016 770,000 251,258 410,000 193,824 2017 795,000 223,179 420,000 181,872 2018 810,000 194,388 425,000 169,704 2019 850,000 163,825 445,000 157,176 2020-2024 2,105,000 542,900 2,430,000 582,624 2025-2029 1,590,000 97,400 2,805,000 206,712 $ 7,660,000 $ 1,751,334 $ 7,330,000 $ 1,697,328 Governmental Activities General Obligation Bonds and Certificates of Obligation Revenue Bonds 64 September 30, Principal Interest 2015 $ 685,000 $ 57,947 2016 450,000 42,446 2017 460,000 28,291 2018 265,000 16,899 2019 115,000 10,670 2020-2024 250,000 8,675 $ 2,225,000 $ 164,928 Business-type Activities Revenue Bonds September 30, Principal Interest 2015 $ 565,000 $ 114,675 2016 585,000 97,425 2017 600,000 79,650 2018 615,000 61,425 2019 640,000 39,400 2020-2024 665,000 13,300 $ 3,670,000 $ 405,875 Discretely Presented Component Unit – Tax Increment Financing Fund Revenue Bonds Capital Leases The City has entered into lease agreements as lessee for financing and acquisition of equipment for the Fire Department. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of its future minimum lease payments as of the inception date. The assets acquired through capital leases are as follows: Governmental Activities Asset: Machinery and equipment $ 2,564,713 Less: accumulated depreciation ( 518,333) Total $ 2,046,380 65 The future minimum lease obligations and the net present value of these minimum lease payments as of September 30, 2014, were as follows: Governmental Activities 2015 $ 363,808 2016 314,086 2017 161,419 2018 116,839 2019 116,839 Total minimum lease payments 1,072,991 Less: amount representing interest ( 98,953) Present value of minimum lease payments $ 974,038 Employees’ Retirement System Plan Description The City provides pension benefits for all of its eligible employees through a non-traditional, joint contributory, hybrid defined benefit plan in the statewide Texas Municipal Retirement System (TMRS), an agent multiple-employer public employee retirement system. The plan provisions that have been adopted by the City are within the options available in the governing state statutes of TMRS. TMRS issues a publicly available comprehensive annual financial report that includes financial statements and required supplementary information (RSI) for TMRS; the report also provides detailed explanations of the contributions, benefits and actuarial methods and assumptions used by the System. This report may be obtained from TMRS’ website at www.TMRS.com. The plan provisions are adopted by the governing body of the City, within the options available in the state statutes governing TMRS. Plan provisions for the City were as follows: Plan Year 2012 Plan Year 2013 Plan Year 2014 Employee deposit rate 7.0% 7.0% 7.0% Matching ratio (city to employee) 2 to 1 2 to 1 2 to 1 Years required for vesting 5 5 5 Service retirement eligibility (expressed as age/years of service) 60/5, 0/20 60/5, 0/20 60/5, 0/20 Updated service credit 100% repeating, 100% repeating, 100% repeating, transfers transfers transfers Annuity increase (to retirees) 0% of CPI 0% of CPI 0% of CPI 66 Contributions Under the state law governing TMRS, the contribution rate for each city is determined annually by the actuary, using the Entry Age Normal (EAN) cost method (EAN was first used in the December 31, 2013 valuation; previously, the Projected Unit Credit actuarial cost method had been used). This rate consists of the normal cost contribution rate and the prior service cost contribution rate, which is calculated to be a level percent of payroll from year to year. The normal cost contribution rate for an employee is the contribution rate which, if applied to a member’s compensation throughout their period of anticipated covered service with the municipality, would be sufficient to meet all benefits payable on their behalf. The salary-weighted average of the individual rates is the total normal cost rate. The prior service contribution rate amortizes the unfunded (overfunded) actuarial liability (asset) over the applicable period for that city. Both the normal cost and prior service contribution rates include recognition of the projected impact of annually repeating benefits, such as Updated Service Credits and Annuity Increases. The City contributes to the TMRS Plan at an actuarially determined rate. Both the employees and the City make contributions monthly. Since the City needs to know its contribution rate in advance for budgetary purposes, there is a one-year delay between the actuarial valuation that serves as the basis for the rate and the calendar year when the rate goes into effect. The annual pension cost and net pension obligation/(asset) are as follows: Accounting Annual Percentage Net Year Pension of APC Pension Ending Cost (APC) Contributed Obligation 09/30/12 $ 817,843 100% – 09/30/13 743,803 100% – 09/30/14 754,871 100% – The required contribution rates for fiscal year 2014 were determined as part of the December 31, 2011 and 2012 actuarial valuations. Additional information as of the latest actuarial valuation, December 31, 2013, also follows: Actuarial Valuation Date 12/31/11 12/31/12 12/31/13 Actuarial cost method Projected Unit Credit Projected Unit Credit Entry Age Normal Amortization method Level percent Level percent Level percent of payroll of payroll of payroll Asset valuation method 10-year smoothed 10-year smoothed 10-year smoothed market market market Actuarial Assumptions: Investment rate of return 7.0% 7.0% 7.0% Projected salary increases varies by age varies by age varies by age and service and service and service Inflation 3.0% 3.0% 3.0% Cost-of-living adjustments 0% 0% 0% GASB 25 Equivalent Single 27.3 years; 26.8 years; 27.7 years; amortization period closed period closed period closed period Amortization period for new gains/losses 25 years 25 years 25 years 67 Funded Status and Fund Progress The funded status as of December 31, 2013, the most recent actuarial valuation date, is presented as follows: Acturarial accrued liability (AAL) $ 42,047,025 Acturarial value of plan assets 43,722,138 Unfunded (overfunded) actuarial accrued liability (UAAL) ( 1,675,113) Funded ratio (actuarial value of plan assets/ALL) 104.0% Covered payroll (annual payroll of active employees covered plan) 10,452,089 UAAL as a percentage of covered payroll ( 16.0%) Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of events far into the future. Actuarially determined amounts are subject to continual revision as actual results are compared to past expectations and new estimates are made about the future. Actuarial calculations are based on the benefits provided under the terms of the substantive plan in effect at the time of each valuation, and reflect a long-term perspective. Consistent with that perspective, actuarial methods and assumptions used include techniques that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets. The schedule of funding progress, presented as Required Supplementary Information following the notes to the financial statements, presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability of benefits. Water and Wastewater Contracts The City has two contracts with the Trinity River Authority of Texas (TRA) for the purchase of treated water and for the transportation, treatment and disposal of sanitary sewage and other waste. The initial terms of the contracts are 35 and 50 years, and they expire in 2014 and 2023. While the provisions of each of the contracts vary, each contract basically requires the City to pay varying amounts based on the costs associated with water purchased and sewage transported and/or treated and disposed. The cost includes the City’s proportionate share of TRA’s operating and maintenance expenses, related debt service costs, and certain other miscellaneous charges. Purchases of treated water and charges for the transportation, treatment and disposal of sewage and other wastes during fiscal year 2014 amounted to approximately $7,315,501 and $1,899,907, respectively. Advances from Developers Developers are required by ordinance to construct perimeter streets and related storm drainage facilities. The developer may request a waiver from the Council for the construction requirements and instead deposit escrow funds with the City equal to one-half of the estimated cost of construction, which are utilized by the City to complete the project at some later date. At September 30, 2014, developers had escrowed $3,004,790 with the City in connection with developer agreements. Contingent Liabilities The City has been named as a defendant or co-defendant in a number of legal actions. While the outcome of these cases is not known at this time, City management believes that any awards to insured parties which must be paid in excess of amounts covered by insurance will not be material to the financial position of the City. 68 Risk Financing and Insurance 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 the fiscal year 1974, the City joined the Texas Municipal League Workers Compensation Joint Insurance Fund for risks related to employees. During the fiscal year 1992, the City joined the Texas Municipal League Joint Insurance Fund for risks related to general liability, property and errors and omissions. Premiums are paid to the Pool, which retains a limit of loss. Reinsurance companies insure the risks beyond those limits. The City retains, as a risk, only the deductible amount of each policy. There have been no significant reductions in insurance coverage and no settlements exceeded insurance coverage in the past three fiscal years. Other Postemployment Benefits Supplemental Death Benefits Fund The City also participates in the cost sharing multiple-employer defined benefit group term life insurance plan operated by the Texas Municipal Retirement System (TMRS) known as the Supplemental Death Benefits Fund (SDBF). The City elected, by ordinance to provide group term life insurance coverage to both current and retired employees. The City may terminate coverage under and discontinue participation in the SDBF by adopting an ordinance before November 1 of any year to be effective the following January 1. The 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); retired employees are insured for $7,500; this coverage is an “other postemployment benefit,” or OPEB. The City’s contributions to the TMRS SDBF for the years ended 2014, 2013, and 2012 were $16,837, 15,132, and $14,480, respectively, which equaled the required contributions each year. Annual Actual Accounting Required Contribution Percentage Year Contribution Made of ARC Ending (Rate) (Rate) Contributed 09/30/12 .013% .013% 100% 09/30/13 .015% .015% 100% 09/30/14 .016% .016% 100% Schedule of Contribution Rates Prior Year Adjustment – Change in Accounting Principles As a result of implementing GASB Statement 65, the City has decreased beginning net position as of October 1 2014 by $158,812 for the governmental activities and $88,627 for the businesstype activities. These decreases result from no longer deferring and amortizing bond issuance costs. Further, the City has reclassified its deferred loss on bond refunding, previously reported as a component of long-term debt, to deferred outflows of resources in the government-wide statements in accordance with GASB 65. The effect of this change increases the long-term liabilities of the business-type activities by $133,525, and corresponds to an increase in deferred outflows of resources as of October 1, 2014. 69 REQUIRED SUPPLEMENTARY INFORMATION 70 THIS PAGE INTENTIONALLY LEFT BLANK 71 CITY OF COLLEYVILLE, TEXAS REQUIRED SUPPLEMENTARY INFORMATION TEXAS MUNICIPAL RETIREMENT SYSTEM SCHEDULE OF FUNDING PROGRESS Unfunded Actuarial Actuarial Actuarial Actuarial Annual Accrued Liability Valuation Value of Accrued Funded Accrued Covered as a Percentage Date Assets Liability Ratio Liability Payroll of Covered Payroll 12/31/2011 38,477,205 36,643,865 1 05.0% ( 1,833,340) 9,661,349 ( 1 9.0%) 12/31/2012 41,091,987 38,639,275 1 06.3% ( 2,452,712) 9,940,381 ( 2 4.7%) 12/31/2013 43,722,138 42,047,025 1 04.0% ( 1,675,113) 10,542,089 ( 1 6.0%) 72 NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS Special Revenue Funds are used to account for specific revenues that are legally restricted to expenditure for particular purposes. Voluntary Park – This fund is used to account for the operations for which voluntary contributions by citizens are used. Contributions are used primarily to support park activities. Voluntary Library – This fund is used to account for the operations for which voluntary contributions by citizens are used. Contributions are used primarily to support library activities. Police Asset Forfeiture –This fund is used to account for activity related to seizure of assets in criminal-related activities. Tree Preservation – This fund is used to account for operations related to replacement of trees, which are eliminated due to commercial development. Contributions are received from entities that are developing the property. Library Donation – This fund is used to account for private and corporate donations for capital purchases related to the library building for the City. Recreational Event – This fund is used to account for activities related to special events for the City. Colleyville Center Development – This fund is used to account for contributions received to construct a community center. Recycling – This fund is used to account for the promotion of recycling activities in the City of Colleyville. Contributions are received from the holder of the City’s recycling franchise. LEOSE (Law Enforcement Officer Standards and Education) – This fund is used to account for activities related to the continuing education of qualified law enforcement officers as funded by the State of Texas LEOSE Account. Colleyville Economic Development – This fund is used to account for the use of bond proceeds and sales tax revenues for municipal park improvements, the purchase of land and equipment for additional neighborhood parks and for the construction of a community center and library. Crime District – This fund is used to account for the Colleyville Crime Control and Prevention District formed to act on behalf of the City for financing the development of crime control throughout the City. 73 Kidsville Maintenance – This fund is used to account for contributions received for the maintenance of Kidsville Playground. Special Donations – This fund is used to account for various donations made to the City for specific projects. Court Technology – This fund is used to account for the collection and use of fines collected to be specifically used on technology for the court. Court Security – This fund is used to account for the collection and use of fines collected to be specifically used for security purposes. TDPA Grant – This fund is used to account for grant proceeds received for the acquisition of equipment and expenditures relating to fire and rescue. Public Art – This fund is used to account for the acquisition of art to be placed in City owned facilities with high public visibility. Juvenile Case Manager – This fund is used to account for staff, whose primary role is handling juvenile defendants in terms of teen court dockets, all school violations including truancy, failure to attend school and parental noncompliance violations, and mandatory classes for drug, tobacco and alcohol defendants, as permitted by state statute. CAPITAL PROJECTS FUNDS Capital Projects Funds are used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds and trust funds. Colleyville Tomorrow Fund – is used to account for proceeds received on gas leases on Cityowned property to be used for capital purchases. Parks Tomorrow Fund – This fund is used to account for proceeds received on gas leases on City-owned parks property for parks capital projects. Park Land Dedication Fund – This fund is used to account for the acquisition of land for new park sites and to make improvements to or expand existing parks to better serve new development. Fees collected from the developers of residential and commercial development finance the improvements. Colleyville Economic Development Corporation (CEDC) – This fund is used to account for financial resources to be used for the acquisition or construction or CEDC capital facilities. Financing is provided primarily by the revenue from certificate of obligation bonds. Capital and Cable Equipment Replacement – This fund is used to account for the replacement of cable equipment and other capital equipment. Kimzey Park – This fund is used to account for the construction of Kimzey Park. The source of funding was a Texas Parks and Wildlife state grant. Voluntary Park Voluntary Library Police Asset Forfeiture ASSETS Cash and cash equivalents $ 161,080 $ 44,837 $ 4,188 Investments 599,816 358,841 – Due from other governments – – – Accrued interest 648 423 – Total assets $ 761,544 $ 404,101 $ 4,188 LIABILITIES Accounts payable $ – $ – $ – Accrued liabilities – – – Advances from developers – – – Total liabilities – – – FUND BALANCES Restricted – – 4,188 Committed 761,544 404,101 – Assigned – – – Total fund balances 761,544 404,101 4,188 Total liabilities and fund balances $ 761,544 $ 404,101 $ 4,188 CITY OF COLLEYVILLE, TEXAS COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2014 Special Revenue Funds 74 Tree Preservation Library Donation Recreational Event Colleyville Center Development Recycling LEOSE $ 39,279 $ 135,259 $ 4,475 $ 5,857 $ 1,627 $ 1,057 – – – – – – – – – – – – – – – – – – $ 39,279 $ 135,259 $ 4,475 $ 5,857 $ 1,627 $ 1,057 $ – $ – $ – $ – $ – $ – – – – – – – 13,724 – – – – – 13,724 – – – – – – 135,259 – 5,857 – 1,057 25,555 – – – – – – – 4,475 – 1,627 – 25,555 135,259 4,475 5,857 1,627 1,057 $ 39,279 $ 135,259 $ 4,475 $ 5,857 $ 1,627 $ 1,057 Special Revenue Funds 75 Colleyville Economic Development Crime District Kidsville Maintenance ASSETS Cash and cash equivalents $ 1,910,535 $ 1,150,357 $ 20,426 Investments 511,531 – – Due from other governments 313,595 265,321 – Accrued interest 209 – – Total assets $ 2,735,870 $ 1,415,678 $ 20,426 LIABILITIES Accounts payable $ 1,875 $ 122 $ – Accrued liabilities – 16,242 – Advances from developers – – – Total liabilities 1,875 16,364 – FUND BALANCES Restricted 2,733,995 1,399,314 20,426 Committed – – – Assigned – – – Total fund balances 2,733,995 1,399,314 20,426 Total liabilities and fund balances $ 2,735,870 $ 1,415,678 $ 20,426 NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2014 (Continued) CITY OF COLLEYVILLE, TEXAS COMBINING BALANCE SHEET Special Revenue Funds 76 Special Donations Court Technology Court Security TDPA Grant Public Art Juvenile Case Manager $ 62,522 $ 28,672 $ 73,039 $ 8 ,133 $ 7 ,904 $ 10,196 – – – – – – – – – – – – – – – – – – $ 62,522 $ 28,672 $ 73,039 $ 8 ,133 $ 7 ,904 $ 10,196 $ – $ – $ – $ – $ – $ 20 – – 393 – – 1,728 – – – – – – – – 393 – – 1,748 62,522 28,672 72,646 8 ,133 – 8,448 – – – – – – – – – – 7 ,904 – 62,522 28,672 72,646 8 ,133 7 ,904 8,448 $ 62,522 $ 28,672 $ 73,039 $ 8 ,133 $ 7 ,904 $ 10,196 Special Revenue Funds 77 Colleyville Tomorrow Parks Tomorrow Park Land Dedication ASSETS Cash and cash equivalents $ 1,848,708 $ 1,196,364 $ 625,363 Investments 374,803 – 1,404,434 Due from other governments – – – Accrued interest 434 – 1,529 Total assets $ 2,223,945 $ 1,196,364 $ 2,031,326 LIABILITIES Accounts payable $ – $ – $ – Accrued liabilities – – – Advances from developers – – – Total liabilities – – – FUND BALANCES Restricted – – – Committed 2,223,945 1,196,364 2,031,326 Assigned – – – Total fund balances 2,223,945 1,196,364 2,031,326 Total liabilities and fund balances $ 2,223,945 $ 1,196,364 $ 2,031,326 SEPTEMBER 30, 2014 Capital Project Funds CITY OF COLLEYVILLE, TEXAS COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS (Continued) 78 CEDC Capital Project Capital and Cable Equipment Replacement Kimzey Park Total Governmental Funds $ 146,825 $ 301,125 $ 3 ,576 $ 7,791,404 – 450,311 – 3,699,736 – – – 578,916 – 645 – 3,888 $ 146,825 $ 752,081 $ 3 ,576 $ 12,073,944 $ – $ 179 $ – $ 2,196 – – – 18,363 – – – 13,724 – 179 – 34,283 – – – 4,480,517 146,825 – 3 ,576 6,793,236 – 751,902 – 765,908 146,825 751,902 3 ,576 12,039,661 $ 146,825 $ 752,081 $ 3 ,576 $ 12,073,944 Capital Project Funds 79 Voluntary Park Voluntary Library Police Asset Forfeiture REVENUES Taxes $ – $ – $ – Fees and fines – – – Intergovernmental – – – Charges for services – – – Donations 157,816 157,816 – Investment earnings 1,599 404 – Miscellaneous – – – Total revenues 159,415 158,220 – EXPENDITURES Current: General government – – – Community development and engineering – – – Fire and rescue – – – Leisure services 25,645 142,433 – Municipal court – – – Police – – 2,499 Debt service: Interest and other charges – – – Capital outlay – – – Total expenditures 25,645 142,433 2,499 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 133,770 15,787 ( 2,499) OTHER FINANCING SOURCES (USES) Proceeds from long-term debt, net – – – Payment to bond escrow agent Sale of capital assets – – – Transfers in – – – Transfers out – – – Total other financing sources and uses – – – NET CHANGE IN FUND BALANCES 133,770 15,787 ( 2,499) FUND BALANCES, BEGINNING 627,774 388,314 6,687 FUND BALANCES, ENDING $ 761,544 $ 404,101 $ 4,188 Special Revenue Funds NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2014 CITY OF COLLEYVILLE, TEXAS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 80 Tree Preservation Library Donation Recreational Event Colleyville Center Development Recycling LEOSE $ – $ – $ – $ – $ – $ – – – – – – – – – – – – 4,002 – – – – – – 20,852 34,973 8,075 7,000 – – – – – – – – – – – – 15,000 – 20,852 34,973 8,075 7,000 15,000 4,002 – – – – 11,052 – – – – – – – – – – – – 740 – 27,155 3,600 7,000 – – – – – – – – – – – – – 10,561 – – – – – – – – – – – – – 27,155 3,600 7,000 11,052 11,301 20,852 7,818 4,475 – 3,948 ( 7,299) – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – 20,852 7,818 4,475 – 3,948 ( 7,299) 4,703 127,441 – 5,857 ( 2,321) 8,356 $ 25,555 $ 135,259 $ 4,475 $ 5,857 $ 1,627 $ 1,057 Special Revenue Funds 81 Colleyville Economic Development Crime District Kidsville Maintenance REVENUES Taxes $ 1,673,351 $ 1,447,116 $ – Fees and fines – – – Intergovernmental – – – Charges for services – – – Donations – – – Investment earnings 2,477 871 – Miscellaneous – – – Total revenues 1,675,828 1,447,987 – EXPENDITURES Current: General government – – – Community development and engineering 164,451 – – Fire and rescue – – – Leisure services 131,068 – – Municipal court – – – Police – 585,892 – Debt service: Interest and other charges 372,808 – – Capital outlay 115,547 218,892 – Total expenditures 783,874 804,784 – EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 891,954 643,203 – OTHER FINANCING SOURCES (USES) Proceeds from long-term debt, net 7,330,000 – – Payment to bond escrow agent ( 7,600,000) – – Sale of capital assets – 50,709 – Transfers in – – – Transfers out ( 165,332) ( 511,182) – Total other financing sources and uses ( 435,332) ( 460,473) – NET CHANGE IN FUND BALANCES 456,622 182,730 – FUND BALANCES, BEGINNING 2,277,373 1,216,584 20,426 FUND BALANCES, ENDING $ 2,733,995 $ 1,399,314 $ 20,426 COMBINING STATEMENT OF REVENUES, EXPENDITURES FOR THE YEAR ENDED SEPTEMBER 30, 2014 Special Revenue Funds AND CHANGES IN FUND BALANCES CITY OF COLLEYVILLE, TEXAS NONMAJOR GOVERNMENTAL FUNDS (Continued) 82 Special Donations Court Technology Court Security TDPA Grant Public Art Juvenile Case Manager $ – $ – $ – $ – $ – $ – – 30,261 2 2,585 – – 65,107 2,273 – – – – – – 23,850 – – – – 20,632 – – – – – – – – – – – – – – – – – 22,905 54,111 2 2,585 – – 65,107 – – – – – – – – – – – – 7,241 – – – – – 6,383 – – – – – – 52,941 2 3,848 – – 54,005 805 – – – – – – – – – – – – – – – – – 14,429 52,941 2 3,848 – – 54,005 8,476 1,170 ( 1 ,263) – – 11,102 – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – 8,476 1,170 ( 1 ,263) – – 11,102 54,046 27,502 7 3,909 8 ,133 7,904 ( 2,654) $ 62,522 $ 28,672 $ 7 2,646 $ 8 ,133 $ 7,904 $ 8,448 Special Revenue Funds 83 Colleyville Tomorrow Parks Tomorrow Park Land Dedication REVENUES Taxes $ – $ – $ – Fees and fines – – – Intergovernmental – – – Charges for services – – – Donations – – 5 11,449 Investment earnings 2,052 1,153 2 ,715 Miscellaneous – – – Total revenues 2,052 1,153 5 14,164 EXPENDITURES Current: General government – – – Community development and engineering – – – Fire and rescue – – – Leisure services 14,926 6,088 – Municipal court – – – Police – – – Debt service: Interest and other charges – – – Capital outlay 247,882 – 1 09,378 Total expenditures 262,808 6,088 1 09,378 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES ( 260,756) ( 4,935) 4 04,786 OTHER FINANCING SOURCES (USES) Proceeds from long-term debt, net – – – Payment to bond escrow agent – – – Sale of capital assets – – – Transfers in 228,650 – – Transfers out – – – Total other financing sources and uses 228,650 – – NET CHANGE IN FUND BALANCES ( 32,106) ( 4,935) 4 04,786 FUND BALANCES, BEGINNING 2,256,051 1,201,299 1 ,626,540 FUND BALANCES, ENDING $ 2,223,945 $ 1,196,364 $ 2 ,031,326 CITY OF COLLEYVILLE, TEXAS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS (Continued) FOR THE YEAR ENDED SEPTEMBER 30, 2014 Capital Project Funds 84 CEDC Capital Project Capital and Cable Equipment Replacement Kimzey Park Total Governmental Funds $ – $ – $ – $ 3,120,467 – – – 117,953 – – – 6,275 – – – 23,850 – – – 918,613 – 1,873 – 13,144 – – – 15,000 – 1,873 – 4,215,302 – 93,984 – 105,036 – – – 164,451 – – – 7,981 2,500 – – 366,798 – – – 130,794 – 11,567 – 611,324 – – – 372,808 4,500 373,495 – 1,069,694 7,000 479,046 – 2,828,886 ( 7,000) ( 477,173) – 1,386,416 – – – 7,330,000 – – – ( 7,600,000) – 29,368 – 80,077 – 297,000 – 525,650 – – – ( 676,514) – 326,368 – ( 340,787) ( 7,000) ( 150,805) – 1,045,629 153,825 902,707 3,576 10,994,032 $ 146,825 $ 751,902 $ 3,576 $ 12,039,661 Capital Project Funds 85 Variance with Budget – Positive Budget Actual (Negative) REVENUES Taxes $ 1,029,974 $ 1 ,154,810 $ 1 24,836 Investment earnings 1,975 8 81 ( 1 ,094) Total revenues 1,031,949 1 ,155,691 1 23,742 EXPENDITURES Debt service: Principal retirement 1,342,586 1 ,342,586 – Interest and fiscal charges 343,211 3 43,420 ( 2 09) Total expenditures 1,685,797 1 ,686,006 ( 2 09) EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES ( 653,848) ( 5 30,315) 1 23,533 OTHER FINANCING SOURCES Transfers in 501,182 5 01,182 – Total other financing sources 501,182 5 01,182 – NET CHANGE IN FUND BALANCE ( 152,666) ( 2 9,133) 1 23,533 FUND BALANCE, BEGINNING 931,623 9 31,623 – FUND BALANCE, ENDING $ 778,957 $ 9 02,490 $ 1 23,533 FOR THE YEAR ENDED SEPTEMBER 30, 2014 CITY OF COLLEYVILLE, TEXAS DEBT SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL 86 87 AGENCY FUNDS Employee Activity Fund – This fund is used to account for funds held by the City for the benefit of employees of the City. Sesquicentennial Fund – This fund is used to account for funds held by the City for the benefit of the City of Colleyville’s historical purposes. Employee Activity Sesquicentennial Fund Fund Total ASSETS Cash and cash equivalents $ 7,106 $ 18,405 $ 25,511 Total assets $ 7,106 $ 18,405 $ 25,511 LIABILITIES Due to other agencies and individuals $ 7,106 $ 18,405 $ 25,511 Total liabilities $ 7,106 $ 18,405 $ 25,511 CITY OF COLLEYVILLE, TEXAS COMBINING STATEMENT OF FIDUCIARY NET POSITION AGENCY FUNDS SEPTEMBER 30, 2014 88 Balance Balance 10/01/13 Additions Deletions 09/30/14 Cash and cash equivalents $ 6,410 $ 3,264 $ 2,568 $ 7,106 Total assets $ 6,410 $ 3,264 $ 2,568 $ 7,106 Due to other agencies and individuals $ 6,410 $ 3,264 $ 2,568 $ 7,106 Total liabilities $ 6,410 $ 3,264 $ 2,568 $ 7,106 Balance Balance 10/01/13 Additions Deletions 09/30/14 Cash and cash equivalents $ 17,873 $ 532 $ – $ 18,405 Total assets $ 17,873 $ 532 $ – $ 18,405 Due to other agencies and individuals $ 17,873 $ 532 $ – $ 18,405 Total liabilities $ 17,873 $ 532 $ – $ 18,405 Balance Balance 10/01/13 Additions Deletions 09/30/14 Cash and cash equivalents $ 24,283 $ 3,796 $ 2,568 $ 25,511 Total assets $ 24,283 $ 3,796 $ 2,568 $ 25,511 Due to other agencies and individuals $ 24,283 $ 3,796 $ 2,568 $ 25,511 Total liabilities $ 24,283 $ 3,796 $ 2,568 $ 25,511 Employee Activity Fund Sesquicentennial Fund Total Agency Funds CITY OF COLLEYVILLE, TEXAS COMBINING STATEMENT OF CHANGES IN AGENCY FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2014 ASSETS AND LIABILITIES 89 90 THIS PAGE INTENTIONALLY LEFT BLANK 91 STATISTICAL SECTION This part of the City of Colleyville, Texas’ comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government’s overall financial health. Contents Page Financial Trends 92 These schedules contain trend information to help the reader understand how the government’s financial performance and wellbeing have changed over time. Revenue Capacity 102 These schedules contain information to help the reader assess the government’s most significant local revenue source, the property tax. Debt Capacity 107 These schedules present information to help the reader assess the affordability of the government’s current levels of outstanding debt and the government’s ability to issue additional debt in the future. Demographic and Economic Information 114 These schedules offer demographic and economic indicators to help the reader understand the environment within which the government’s financial activities take place. Operating Information 116 These schedules contain service and infrastructure data to help the reader understand how the information in the government’s financial report relates to the services the government provides and the activities it performs. Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. 2005 2006 2007 Governmental activities: Net investment in capital assets $ 60,884,756 $ 66,991,146 $ 71,824,719 Restricted for: Debt service 896,130 937,578 1,032,586 Court security and technology – – – Grant programs – – – Leisure services – – – Economic development – – – Streets and drainage – – – Police – – – Unrestricted 19,132,376 19,002,816 21,987,778 Total governmental activities net position $ 80,913,262 $ 86,931,540 $ 94,845,083 Business-type activities: Net investment in capital assets $ 24,827,365 $ 25,919,619 $ 32,804,703 Restricted for: Debt service 670,571 882,821 1,080,751 Unrestricted 16,374,236 19,253,772 13,626,274 Total business-type activities net position $ 41,872,172 $ 46,056,212 $ 47,511,728 Primary government: Net investment in capital assets $ 85,712,121 $ 92,910,765 $ 104,629,422 Restricted for: Debt service 1,566,701 1,820,399 2,113,337 Court security and technology – – – Grant programs – – – Leisure services – – – Economic development – – – Streets and drainage – – – Police – – – Unrestricted 35,506,612 38,256,588 35,614,052 Total primary government net position $ 122,785,434 $ 132,987,752 $ 142,356,811 Note: The City implemented GASB 54 in fiscal year 2011 to provide clearer fund balance classifications. Prior years were not restated. Fiscal Year CITY OF COLLEYVILLE, TEXAS NET POSITION BY COMPONENT (Accrual Basis of Accounting) 92 TABLE 1 2008 2009 2010 2011 2012 2013 2014 $ 77,484,725 $ 79,243,497 $ 81,970,674 $ 83,166,142 $ 83,211,988 $ 84,414,252 $ 89,754,051 889,689 1,040,896 1,057,699 1,106,893 1,159,092 857,143 831,073 – – – 153,420 91,637 101,411 109,766 – – – 23,208 21,116 16,489 9,190 – – – 201,184 207,736 207,770 224,064 – – – 1,863,900 1,998,845 2,277,373 2,733,995 – – – 6,428,106 8,192,568 8,432,946 12,188,836 – – – 994,913 1,143,454 1,223,271 1,403,502 21,862,136 27,498,864 25,936,703 17,837,593 19,559,719 18,680,620 17,930,939 $ 100,236,550 $ 107,783,257 $ 108,965,076 $ 111,775,359 $ 115,586,155 $ 116,211,275 $ 125,185,416 $ 39,442,148 $ 39,174,562 $ 39,080,043 $ 38,892,098 $ 38,395,708 $ 39,269,943 $ 41,567,161 1,024,349 987,181 983,225 662,050 – – – 7,837,790 8,127,736 7,747,336 10,111,776 12,332,238 13,702,724 14,827,594 $ 48,304,287 $ 48,289,479 $ 47,810,604 $ 49,665,924 $ 50,727,946 $ 52,972,667 $ 56,394,755 $ 116,926,873 $ 118,418,059 $ 121,050,717 $ 122,058,240 $ 121,607,696 $ 123,684,195 $ 131,321,212 1,914,038 2,028,077 2,040,924 1,768,943 1,159,092 857,143 831,073 – – – 153,420 91,637 101,411 109,766 – – – 23,208 21,116 16,489 9,190 – – – 201,184 207,736 207,770 224,064 – – – 1,863,900 1,998,845 2,277,373 2,733,995 – – – 6,428,106 8,192,568 8,432,946 12,188,836 – – – 994,913 1,143,454 1,223,271 1,403,502 29,699,926 35,626,600 33,684,039 27,949,369 31,891,957 32,383,344 32,758,533 $ 148,540,837 $ 156,072,736 $ 156,775,680 $ 161,441,283 $ 166,314,101 $ 169,183,942 $ 181,580,171 Fiscal Year 93 2005 2006 2007 EXPENSES Governmental activities: General government $ 2,245,964 $ 2,729,064 $ 2,438,051 Community Development and Engineering 1,164,345 1,267,136 1,523,768 Fire and rescue 3,325,103 3,814,585 3,790,831 Leisure services 2,923,958 3,513,992 3,525,094 Maintenance 364,434 383,504 434,984 Municipal court 238,874 270,345 262,198 Police 3,533,083 3,801,644 4,232,185 Streets and drainage 2,970,475 2,932,465 2,890,995 Interest on long-term debt 1,190,857 1,142,043 1,032,374 Total governmental activities expenses 17,957,093 19,854,778 20,130,480 Business-type activities: Water and wastewater 8,962,630 9,428,373 9,337,282 Drainage 550,005 548,963 671,773 Interest on long-term debt – 440,703 400,752 Total business-type activities expenses 9,512,635 10,418,039 10,409,807 Total primary government program expenses $ 27,469,728 $ 30,272,817 $ 30,540,287 PROGRAM REVENUES Governmental activities: Charges for services: General government $ 6,000 $ 6,000 $ 6,000 Community Development and Engineering 1,515,052 2,163,596 1,454,744 Fire and rescue 136,498 239,386 303,868 Leisure services 386,658 448,606 424,024 Municipal court 492,805 813,781 932,452 Police 95,234 70,899 81,054 Streets and drainage 336,111 472,860 355,157 Operating grants and contributions 523,704 399,819 431,683 Capital grants and contributions 3,283,774 4,355,357 5,372,281 Total governmental activities program revenues 6,775,836 8,970,304 9,361,263 CITY OF COLLEYVILLE, TEXAS CHANGES IN NET POSITION (Accrual Basis of Accounting) Fiscal Year 94 2008 2009 2010 2011 2012 2013 2014 $ 2,814,874 $ 2,945,481 $ 2,691,905 $ 2,715,154 $ 3,125,214 $ 4,075,001 $ 4,103,928 1,481,124 1,530,901 1,645,221 1,402,669 1,397,839 1,429,755 1,613,311 3,958,111 4,113,793 4,419,945 4,421,496 4,321,929 4,529,225 4,625,036 4,033,105 3,941,259 4,118,769 4,191,960 4,124,619 4,106,822 3,776,068 417,265 455,752 423,783 412,513 400,306 494,545 575,696 324,020 291,724 302,756 303,839 319,445 586,709 501,604 4,657,438 4,841,217 4,836,274 4,878,055 4,579,570 4,961,444 5,019,343 3,129,730 3,503,519 3,885,182 3,657,591 3,073,530 5,322,510 4,128,365 1,101,714 1,051,180 1,000,061 849,390 780,029 724,458 717,045 21,917,381 22,674,826 23,323,896 22,832,667 22,122,481 26,230,469 25,060,396 11,179,548 10,612,372 11,242,553 12,009,187 12,258,587 12,544,530 13,238,893 593,600 658,016 572,234 742,160 723,994 707,647 571,886 362,642 331,361 296,288 – – – – 12,135,790 11,601,749 12,111,075 12,751,347 12,982,581 13,252,177 13,810,779 $ 34,053,171 $ 34,276,575 $ 35,434,971 $ 35,584,014 $ 35,105,062 $ 39,482,646 $ 38,871,175 $ 16,000 $ 15,000 $ 15,000 $ 97,234 $ 28,408 $ 15,000 $ 15,000 1,332,453 666,914 647,298 868,363 1,146,518 927,690 1,387,329 250,814 271,216 235,225 305,882 335,308 308,339 377,021 563,738 6,595,487 468,426 1,213,167 520,433 501,260 510,991 1,171,919 1,002,008 1,213,178 970,143 1,015,804 1,271,095 1,268,447 79,699 51,631 94,059 70,709 81,056 70,513 71,022 358,688 215,619 345,780 296,350 338,845 316,338 347,565 1,856,567 713,189 543,516 822,056 490,069 468,361 486,869 3,973,954 360,023 423,873 405,347 381,308 1,158,050 5,943,465 9,603,832 9,891,087 3,986,355 5,049,251 4,337,749 5,036,646 10,407,709 TABLE 2 Fiscal Year 95 2005 2006 2007 PROGRAM REVENUES Business-type activities: Charges for services: Water and wastewater $ 9,856,889 $ 12,357,576 $ 9,127,470 Drainage 675,045 830,292 841,972 Capital grants and contributions 844,256 1,100,354 1,561,255 Total business-type activities program revenues 11,376,190 14,288,222 11,530,697 Total primary government program revenues $ 18,152,026 $ 23,258,526 $ 20,891,960 NET (EXPENSE) REVENUES Governmental activities $( 11,181,257) $( 10,884,474) $( 10,769,217) Business-type activities 1,863,555 3,870,183 1,120,890 Total primary government net expense ( 9,317,702) ( 7,014,291) ( 9,648,327) GENERAL REVENUES AND OTHER CHANGES IN NET POSITION Governmental activities: Taxes Property 8,938,888 9,483,546 10,153,775 Franchise 1,477,749 1,790,543 1,779,376 Sales 3,801,369 4,355,627 4,674,068 Other 53,974 76,005 89,132 Investment earnings 443,570 904,361 1,224,361 Miscellaneous 153,947 65,313 97,963 Gain on sale of capital assets – – – Transfers 464,393 532,357 664,085 Total governmental activities 15,333,890 17,207,752 18,682,760 Business-type activities: Investment earnings 377,064 846,214 998,710 Gain on sale of capital assets – – – Transfers ( 464,393) ( 532,357) ( 664,085) Total business-type activities ( 87,329) 313,857 334,625 Total primary government 15,246,561 17,521,609 19,017,385 CHANGE IN NET POSITION Governmental activities 4,152,633 6,323,278 7,913,543 Business-type activities 1,776,226 4,184,040 1,455,515 Total primary government $ 5,928,859 $ 10,507,318 $ 9,369,058 Note: See Table 9 for information about Water and Wastewater Charges for services CITY OF COLLEYVILLE, TEXAS CHANGES IN NET POSITION Fiscal Year (Accrual Basis of Accounting) 96 (continued) 2008 2009 2010 2011 2012 2013 2014 $ 11,114,892 $ 11,303,868 $ 11,414,425 $ 14,355,418 $ 14,034,600 $ 14,661,491 $ 14,789,614 859,013 874,637 897,361 903,089 918,323 928,863 939,868 1,415,785 63,293 147,014 168,365 169,464 876,660 2,707,835 13,389,690 12,241,798 12,458,800 15,426,872 15,122,387 16,467,014 18,437,317 $ 22,993,522 $ 22,132,885 $ 16,445,155 $ 20,476,123 $ 19,460,136 $ 21,503,660 $ 28,845,026 $( 12,313,549) $( 12,783,739) $( 19,337,541) $( 17,783,416) $( 17,784,732) $( 21,193,823) $( 14,652,687) 1,253,900 640,049 347,725 2,675,525 2,139,806 3,214,837 4,626,538 ( 11,059,649) ( 12,143,690) ( 18,989,816) ( 15,107,891) ( 15,644,926) ( 17,978,986) ( 10,026,149) 11,367,967 12,121,420 12,557,716 12,414,948 12,414,457 12,497,692 12,950,832 1,818,060 2,017,440 1,867,065 2,031,268 2,207,463 2,074,731 2,172,801 4,740,964 4,718,976 4,936,484 5,056,597 5,495,730 5,902,557 6,472,195 82,532 74,198 75,365 80,731 65,808 68,592 98,160 804,864 471,524 76,968 95,822 108,192 77,269 39,697 96,348 77,854 82,833 55,454 74,041 85,562 61,643 116,112 25,237 65,306 – 147,969 – 810,020 841,936 823,797 857,622 858,879 1,081,868 1,112,540 1,180,292 19,868,783 20,330,446 20,519,359 20,593,699 21,595,528 21,818,943 23,785,640 380,595 168,940 15,158 38,674 4,084 38,987 23,655 – – 15,864 – – 103,437 40,814 ( 841,936) ( 823,797) ( 857,622) ( 858,879) ( 1,081,868) ( 1,112,540) ( 1,180,292) ( 461,341) ( 654,857) ( 826,600) ( 820,205) ( 1,077,784) ( 970,116) ( 1,115,823) 19,407,442 19,675,589 19,692,759 19,773,494 20,517,744 20,848,827 22,669,817 7,555,234 7,546,707 1,181,818 2,810,283 3,810,796 625,120 9,132,953 792,559 ( 14,808) ( 478,875) 1,855,320 1,062,022 2,244,721 3,510,715 $ 8,347,793 $ 7,531,899 $ 702,943 $ 4,665,603 $ 4,872,818 $ 2,869,841 $ 12,643,668 Fiscal Year TABLE 2 97 98 THIS PAGE INTENTIONALLY LEFT BLANK TABLE 3 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 General fund Non-spendable $ – $ – $ – $ – $ – $ – $ 2,147 $ 132,664 $ 1,759 $ 1,269 Restricted – – – – – – – – – – Committed – – – – – – 706,942 813,536 813,536 813,536 Assigned – – – – – – – – – – Unassigned 6,850,731 7,575,662 8 ,495,329 8,717,398 8,207,420 8 ,813,597 10,223,232 11,762,625 11,006,716 10,080,617 Total general fund $ 6,850,731 $ 7,575,662 $ 8 ,495,329 $ 8,717,398 $ 8,207,420 $ 8 ,813,597 $ 10,932,321 $ 12,708,825 $ 11,822,011 $ 10,895,422 All other governmental funds Non-spendable $ – $ – $ – $ – $ – $ – $ – $ – $ – $ – Restricted 2,959,583 1,082,681 1 ,254,686 987,681 1,121,567 1 ,154,570 10,853,638 12,894,768 13,190,883 17,571,843 Committed – – – – – – 5,967,620 6,193,060 6,262,082 6,793,236 Assigned – – – – – – 1,148,548 954,818 910,611 765,908 Unassigned – – – – – – ( 4,975) – Unassigned, reported in: Special revenue funds 3,251,861 4,760,679 4 ,814,412 5,696,905 7,267,350 5 ,664,493 – – – – Capital projects funds 7,438,437 7,012,225 9 ,055,431 7,811,492 12,369,631 1 1,524,206 – – – – Total all other governmental funds $ 13,649,881 $ 12,855,585 $ 1 5,124,529 $ 14,496,078 $ 20,758,548 $ 1 8,343,269 $ 17,969,806 $ 20,042,646 $ 20,358,601 $ 25,130,987 Note: This schedule does not restate prior years for Special Revenue and Capital Projects Funds. The City implemented GASB 54 in fiscal year 2011 to provide clearer fund balance classifications. Prior years were not restated. (Modified Accrual Basis of Accounting) Fiscal Year CITY OF COLLEYVILLE, TEXAS FUND BALANCES GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS 99 TABLE 4 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 REVENUES Taxes $ 14,277,010 $ 1 5,708,945 $ 1 6,701,290 $ 17,975,445 $ 1 8,889,480 $ 1 9,353,358 $ 1 9,627,734 $ 2 0,235,012 $ 2 0,541,466 $ 2 1,747,244 Developer contributions 274,996 5 49,911 6 83,425 226,488 – – – – – – Licenses, fees and permits 1,359,329 1 ,931,265 1 ,244,218 1,113,595 6 46,302 6 07,132 9 23,590 1 ,130,426 8 57,135 1 ,090,012 Capital improvement fees 366,111 4 82,860 3 89,657 358,688 2 08,622 3 34,075 2 81,260 3 22,498 3 00,900 3 33,496 Drainage fees – – – – – – – – – – Fines and penalties 513,129 8 41,595 9 65,416 1,203,260 1 ,028,425 1 ,244,146 9 98,221 1 ,051,899 1 ,000,954 1 ,043,821 Charges for services 940,212 1 ,173,394 1 ,190,327 1,322,732 7 ,129,322 9 17,884 1 ,694,993 1 ,030,439 1 ,321,927 1 ,577,564 Interest 443,570 9 04,361 1 ,224,361 804,864 4 71,524 7 6,968 9 5,823 1 10,550 7 7,269 3 9,697 Intergovernmental 167,293 5 ,409 4 ,361 1,437,935 3 50,468 1 00,807 5 41,709 1 24,056 7 6,506 5 56,954 Donations 502,789 3 96,627 7 35,756 548,093 4 01,432 3 79,853 6 02,401 4 06,789 4 87,066 9 18,613 Miscellaneous 183,902 8 3,730 1 07,700 116,280 1 55,100 9 7,833 7 0,453 8 9,041 1 00,562 7 6,643 Total revenues 19,028,341 2 2,078,097 2 3,246,511 25,107,380 2 9,280,675 2 3,112,056 2 4,836,184 2 4,500,710 2 4,763,785 2 7,384,044 EXPENDITURES General government 1,873,091 2 ,107,398 2 ,247,359 2,537,699 2 ,639,218 2 ,423,869 2 ,383,276 2 ,753,457 3 ,171,582 3 ,746,619 Comm Development/Eng 1,160,232 1 ,265,251 1 ,467,216 1,462,566 1 ,531,785 1 ,642,047 1 ,397,256 1 ,396,259 1 ,429,574 1 ,606,589 Fire 3,166,840 3 ,657,554 3 ,517,817 3,755,575 3 ,840,118 3 ,955,407 3 ,972,053 3 ,888,225 4 ,062,535 4 ,174,745 Police 3,293,320 3 ,558,154 3 ,961,975 4,395,056 4 ,588,576 4 ,552,947 4 ,596,862 4 ,304,710 4 ,670,639 4 ,707,315 Leisure services 2,388,761 2 ,838,637 2 ,913,798 3,171,514 3 ,058,332 3 ,173,352 3 ,177,878 3 ,049,908 3 ,035,583 2 ,702,313 Streets and drainage 1,656,187 1 ,604,425 1 ,485,756 1,649,037 1 ,917,536 2 ,297,719 2 ,052,298 1 ,388,970 3 ,597,965 2 ,055,631 Municipal court 238,245 2 70,037 2 52,961 323,059 2 91,893 3 02,172 3 02,666 3 19,084 5 86,911 5 01,027 Maintenance 357,983 3 77,144 4 15,708 410,636 4 49,806 4 17,946 4 05,911 3 94,830 4 89,685 5 70,011 Capital outlay 1,459,940 4 ,491,341 6 ,337,656 5,150,286 2 ,759,774 4 ,935,053 2 ,510,027 2 ,515,115 2 ,668,074 3 ,250,508 Debt service: Interest 1,289,866 1 ,141,817 1 ,094,001 2,584,790 1 ,033,148 9 44,751 8 38,320 7 57,594 6 97,140 7 16,228 Principal 1,573,308 1 ,929,047 2 ,005,204 1,189,798 2 ,275,553 2 ,180,061 2 ,259,004 2 ,007,585 2 ,246,921 1 ,342,586 Total expenditures 18,457,773 2 3,240,805 2 5,699,451 26,630,016 2 4,385,739 2 6,825,324 2 3,895,551 2 2,775,737 2 6,656,609 2 5,373,572 CITY OF COLLEYVILLE, TEXAS CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (Modified Accrual Basis of Accounting) 100 TABLE 4 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES $ 570,568 $( 1 ,162,708) $( 2 ,452,940) $( 1,522,636) $ 4 ,894,936 $( 3 ,713,268) $ 9 40,633 $ 1 ,724,973 $( 1 ,892,824) $ 2 ,010,472 OTHER FINANCING SOURCES (USES) Bonds issued 9,570,000 – 9 ,890,000 – – – 2 ,945,000 – – Refunding bonds – – – – – – – – – 7 ,330,000 Notes payable 94,187 – – – – – – – – Capital lease – 4 08,716 – 176,150 – 9 81,238 – 8 94,534 2 09,425 Sale of capital assets – 1 52,270 8 ,800 98,168 3 3,759 6 5,306 7 ,098 1 47,969 – 9 25,033 Premium on bond issue 6 ,561 – – Payments to escrow ( 7,450,606) – ( 4 ,921,334) – – – ( 3 ,012,910) – – ( 7 ,600,000) Transfers in 1,675,954 2 ,203,261 1 ,637,154 2,082,101 2 ,338,776 1 ,884,896 2 ,458,396 3 ,893,584 4 ,189,380 7 ,355,334 Transfers out ( 1,211,561) ( 1 ,670,904) ( 9 73,069) ( 1,240,165) ( 1 ,514,979) ( 1 ,027,274) ( 1 ,599,517) ( 2 ,811,716) ( 3 ,076,840) ( 6 ,175,042) Total other financing sources (uses) 2,677,974 1 ,093,343 5 ,641,551 1,116,254 8 57,556 1 ,904,166 8 04,628 2 ,124,371 1 ,321,965 1 ,835,325 NET CHANGE IN FUND BALANCES $ 3,248,542 $( 6 9,365) $ 3 ,188,611 $( 406,382) $ 5 ,752,492 $( 1 ,809,102) $ 1 ,745,261 $ 3 ,849,344 $( 5 70,859) $ 3 ,845,797 DEBT SERVICE AS A PERCENTAGE OF NONCAPITAL EXPENDITURES 16.8% 16.4% 16.0% 17.6% 15.3% 14.3% 14.5% 13.6% 12.3% 9.3% Note: Capital Outlay does not include contributed capital assets received from developers. LAST TEN FISCAL YEARS (Modified Accrual Basis of Accounting) CITY OF COLLEYVILLE, TEXAS CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS 101 TABLE 5 Estimated Less: Total Taxable Total Actual Fiscal Residential Personal Tax-exempt Assessed Direct Taxable Year Property Property Property Value Tax Rate Value 2005 2,793,606,203 78,255,043 219,264,381 2,652,596,865 0.3474 2,652,596,865 2006 3,015,929,674 79,122,702 221,809,521 2,873,242,855 0.3474 2,873,242,855 2007 3,229,353,459 86,080,918 228,115,791 3,087,318,586 0.3474 3,087,318,586 2008 3,531,988,996 97,998,283 228,915,486 3,401,071,793 0.3559 3,401,071,793 2009 3,748,968,313 99,556,111 230,676,995 3,617,847,429 0.3559 3,617,847,429 2010 3,907,288,105 95,261,420 237,293,931 3,765,255,594 0.3559 3,765,255,594 2011 3,917,415,346 92,176,541 253,414,335 3,756,177,552 0.3559 3,756,177,552 2012 3,941,020,477 89,758,416 277,077,387 3,753,701,506 0.3559 3,753,701,506 2013 3,997,250,723 91,264,033 296,807,896 3,791,706,860 0.3559 3,791,706,860 2014 4,129,613,419 93,604,217 307,729,550 3,915,488,086 0.3559 3,915,488,086 Source: Tarrant Appraisal District Note: CITY OF COLLEYVILLE, TEXAS ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS Property in Tarrant County is reassessed once every two years. The Appraisal District assesses property at 100 percent of actual value for residential and personal. Tax rates are per $100 of assessed value. 102 TABLE 6 General Grapevine- Hurst-Euless Operations and Obligation Total Birdville Carroll Colleyville Bedford Keller Tarrant County Tarrant County Fiscal Maintenance Debt Direct Independent Independent Independent Independent Independent Tarrant College Hospital Year Rate Service Rate School District School District School District School District School District County District District 2005 0.29072 0 .05668 0.34740 1.6170 1.9350 1.70000 1.7105 1.6975 0 .27250 0.139380 0.235397 2006 0.27771 0 .06969 0.34740 1.6170 1.9350 1.70000 1.7230 1.7158 0 .27250 0.139380 0.235397 2007 0.27873 0 .06867 0.34740 1.5650 1.7950 1.57430 1.5976 1.6080 0 .27150 0.139380 0.235397 2008 0.28299 0 .07291 0.35590 1.4050 1.4650 1.29000 1.3037 1.3574 0 .26650 0.139380 0.230397 2009 0.28860 0 .06731 0.35590 1.4100 1.4150 1.29000 1.2955 1.4169 0 .26400 0.137960 0.227897 2010 0.29864 0 .05726 0.35590 1.4050 1.4150 1.29000 1.2955 1.4863 0 .26400 0.137670 0.227897 2011 0.29758 0 .05832 0.35590 1.4250 1.4150 1.29000 1.2882 1.5306 0 .26400 0.137600 0.227900 2012 0.30881 0 .04709 0.35590 1.4350 1.4150 1.32010 1.4140 1.5400 0 .26400 0.148970 0.227897 2013 0.31385 0 .04205 0.35590 1.4350 1.4000 1.32010 1.4075 1.5400 0 .26400 0.148970 0.227897 2014 0.32442 0 .03148 0.35590 1.4350 1.4000 1.32010 1.3875 1.5400 0 .26400 0.149500 0.227897 Source: Tarrant Appraisal District Notes: Overlapping rates are those of local and county governments that apply to property owners within the City of Colleyville, Texas. Not all school district overlapping rates apply to all Colleyville property owners because the City is served by five different independent school districts; for example, although the county property tax rates apply to all City property owners, the Grapevine-Colleyville Independent School District rates apply only to the approximately two-thirds of City property owners whose property is located within that school district’s geographic boundaries. CITY OF COLLEYVILLE, TEXAS DIRECT AND OVERLAPPING PROPERTY TAX RATES LAST TEN FISCAL YEARS City Direct Rates Overlapping Rates 103 TABLE 7 Percentage Percentage of Total City of Total City Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Taxpayer Value Value Value Value Melvin & Martindale $ 2 4,300,000 0.64% $ 4,594,495 0 .17% Toll Dallas TX LLC 1 6,368,368 0.43% – – % Oncor Electric Delivery 1 6,288,033 0.43% 16,670,636 0 .63% Lifetime Fitness Real Estate 1 2,304,570 0.32% – – % AC Village Park Partners LLC 1 0,430,264 0.28% – – % RCC Village Properties 8 ,831,175 0.23% – – % Wal-Mart Real Estate Business Trust 8 ,769,804 0.23% – – % Colleyville Riverwalk LP 6 ,054,975 0.16% – – % Leonard Hudson 4 ,830,200 0.13% – – % Donald and Gina Wilson 4 ,337,800 0.11% – – % Albertsons – – % 9,450,228 0 .36% Village Management, LTD. – – % 4,794,100 0 .18% Uhlmann-Colleyville, LLC – – % 6,093,083 0 .23% Colleyville Plaza LP – – % 6,500,480 0 .25% Industrial Bank Japan Trust, Co. – – % 5,145,107 0 .19% Market Street – – % 6,033,600 0 .23% Broughton LTD Partnership – – % 7,391,268 0 .28% Broadland Limited Partnership – – % 5,510,559 0 .21% Total $ 1 12,515,189 2.97% $ 72,183,556 2 .73% Source: Tarrant Appraisal District 2014 2005 CITY OF COLLEYVILLE, TEXAS PRINCIPAL PROPERTY TAXPAYERS CURRENT YEAR AND NINE YEARS AGO 104 TABLE 8 Taxes Levied Collections Fiscal for the Percentage in Subsequent Percentage Year Ended Fiscal Year Amount of Levy Years Amount of Levy 2005 9,201,770 9,109,752 99.1% 8 5,530 9,195,283 99.93% 2006 9,981,646 9,906,769 99.2% 6 8,541 9,975,310 99.94% 2007 10,725,345 10,592,222 98.8% 1 24,651 10,716,873 99.92% 2008 12,024,882 11,903,333 99.0% 1 09,102 12,012,435 99.90% 2009 12,875,919 12,734,871 98.9% 1 25,669 12,860,540 99.88% 2010 13,351,922 13,166,515 98.6% 1 64,082 13,330,597 99.84% 2011 13,183,932 13,063,575 99.1% 9 5,672 13,159,247 99.81% 2012 13,163,735 13,082,029 99.4% 4 3,962 13,125,991 99.71% 2013 13,291,462 13,207,902 99.4% 6 2,362 13,270,264 99.84% 2014 13,722,602 13,681,269 99.7% – 13,681,269 99.70% Sources: Tarrant County Appraisal District and City of Colleyville Finance Department. Fiscal Year of the Levy Collected With the Total Collections to Date CITY OF COLLEYVILLE, TEXAS PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS 105 TABLE 9 Percentage Percentage of Total City of Total City Water Water Water Water Taxpayer Usage Usage Usage Usage Grapevine-Colleyville ISD 31,982,000 1.40% 42,168,500 1 .94% Lifetime Fitness 11,434,600 0.50% 14,291,700 0 .66% Town Center 6,854,800 0.30% 6,526,000 0 .30% Market Street 5,704,500 0.25% 5,705,600 0 .26% Bluebonnet Hills 4,913,700 0.22% 5,923,300 0 .27% Toll Dallas 4,591,600 0.20% – – % Wash Depot 4,482,100 0.20% 4,573,400 0 .21% Shadowood Trail 4,265,400 0.19% 5,595,500 0 .26% Westmont 3,789,600 0.17% 2,956,700 0 .14% Woodland Hills 3,554,600 0.16% 3,940,900 0 .18% Whittier Heights 3,447,800 0.15% – – % Broughton Maint Assoc 3,443,500 0.15% – – % Villas at Oak Point 3,279,900 0.14% – – % Monterra 2,811,800 0.12% – – % La Hacienda Ranch 2,774,200 0.12% 3,464,300 0 .16% Clairemont 2,616,100 0.11% – – % Timarron 2,193,100 0.10% – – % Highland Meadows Church 2,165,800 0.09% 4,425,300 0 .20% Rio Mambo 1,794,500 0.08% – – % Albertsons (Glade Rd) 1,692,500 0.07% 7,832,600 0 .36% Total 107,792,100 4.72% 107,403,800 4 .94% Source: City utility billing records 2014 2005 CITY OF COLLEYVILLE, TEXAS PRINCIPAL WATER CUSTOMERS CURRENT YEAR AND NINE YEARS AGO 106 TABLE 10 General Sales Tax Water and Sewer Drainage Total Percentage Fiscal Obligation Revenue Capital Revenue Revenue Capital Primary of Personal Per Year Bonds Bonds Leases Bonds Bonds Leases Government Income Capita 2005 11,995,000 14,980,000 69,187 8,160,000 2,515,000 41,077 37,760,264 3.28% 1,798 2006 10,665,000 14,760,000 404,395 7,365,000 2,365,000 26,933 35,586,328 2.96% 1,640 2007 17,770,000 10,372,462 349,189 6,540,000 2,205,000 13,140 37,249,791 2.89% 1,682 2008 16,275,000 9,795,916 430,549 5,840,000 2,040,000 – 34,381,465 2.65% 1,528 2009 14,665,000 9,199,370 359,996 5,200,000 1,870,000 – 31,294,366 2.52% 1,388 2010 13,300,000 8,572,824 1,151,173 4,520,000 1,695,000 – 29,238,997 2.32% 1,282 2011 11,463,786 8,271,278 972,170 3,600,000 1,550,000 – 25,857,234 1.73% 1,131 2012 9,933,921 7,954,732 1,709,120 2,850,000 1,345,000 – 23,792,773 1.57% 1,037 2013 8,639,056 7,623,186 1,301,624 2,085,000 1,135,000 – 20,783,866 1.37% 900 2014 7,660,000 7,330,000 974,038 1,379,830 915,000 – 18,258,868 1.16% 769 Notes: Details regarding the City’s outstanding debt can be found in the notes to the financial statements. See Table 14 for personal income and population data. CITY OF COLLEYVILLE, TEXAS RATIOS OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS Governmental Activities Business-type Activities 107 TABLE 11 Percentage of General Less Amounts Actual Taxable Fiscal Obligation Restricted to Value of Per Year Bonds Repaying Principal Total Property Capita 2005 11,955,000 989,618 10,965,382 0.41% 522 2006 10,665,000 1,082,681 9,582,319 0.33% 442 2007 17,770,000 1,254,686 16,515,314 0.53% 746 2008 16,275,000 987,681 15,287,319 0.45% 679 2009 14,665,000 1,121,567 13,543,433 0.37% 601 2010 13,300,000 1,154,570 12,145,430 0.32% 533 2011 11,463,786 1,188,907 10,274,879 0.27% 449 2012 9,933,921 1,239,412 8,694,509 0.23% 379 2013 8,639,056 931,623 7,707,433 0.20% 334 2014 7,660,000 902,490 6,757,510 0.17% 285 Notes: Details regarding the City’s outstanding debt can be found in the notes to the financial statements. See Table 5 for property value data. Population data can be found in Table 14. General Bonded Debt Outstanding CITY OF COLLEYVILLE, TEXAS RATIOS OF GENERAL BONDED DEBT OUTSTANDING LAST TEN FISCAL YEARS 108 TABLE 12 Estimated Share of Estimated Direct and Debt Percentage Overlapping Outstanding Applicable Debt Debt repaid with property taxes Birdville Independent School District $ 1 88,860,198 0.080% $ 1 51,088 Carroll Independent School District 2 26,024,791 0.460% 1 ,039,714 Grapevine-Colleyville Independent School District 3 38,573,481 21.490% 7 2,759,441 Hurst-Euless-Bedford Independent School District 2 90,687,648 1.650% 4 ,796,346 Keller Independent School District 6 54,308,399 3.210% 2 1,003,300 Tarrant County 3 17,820,000 3.070% 9 ,757,074 Tarrant County College District 7 ,935,000 3.050% 2 42,018 Tarrant County Hospital District 2 4,425,000 3.060% 7 47,405 Subtotal overlapping debt 1 10,496,386 City direct debt 1 1,330,000 100.000% 1 5,964,038 Total direct and overlapping debt $ 1 26,460,242 Sources: Government Unit Assessed value data used to estimate applicable percentages provided by the Tarrant County Appraisal District and debt outstanding data provided by each governmental unit. CITY OF COLLEYVILLE, TEXAS DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT AS OF SEPTEMBER 30, 2014 109 TABLE 13 Assessed value $ 3,915,488,086 Debt limit (2.5% of assessed value) 97,887,202 Debt applicable to limit: General obligation bonds 7,660,000 Less: Amount set aside for repayment of general obligation debt ( 902,490) Total net debt applicable to limit 6,757,510 Legal debt margin $ 91,129,692 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Debt limit $ 66,314,922 $ 71,831,071 $ 77,182,965 $ 85,026,795 $ 87,755,997 $ 94,131,390 $ 93,904,439 $ 93,842,538 $ 94,792,672 $ 97,887,202 Total net debt applicable to limit 10,999,111 9,582,319 15,745,132 15,287,139 13,543,433 12,145,430 10,321,093 8,735,588 7,743,377 6,757,510 Legal debt margin $ 55,315,811 $ 62,248,752 $ 61,437,833 $ 69,739,656 $ 74,212,564 $ 81,985,960 $ 83,583,346 $ 85,106,950 $ 87,049,295 $ 91,129,692 Total net debt applicable to the limit as a percentage of debt limit. 16.59% 13.34% 20.40% 17.98% 15.43% 12.90% 10.99% 9.31% 8.17% 6 .90% Note: Under state finance law, the City’s outstanding general obligation debt should not exceed 2.50 percent of total assessed property value. Fiscal Year CITY OF COLLEYVILLE, TEXAS LEGAL DEBT MARGIN INFORMATION LAST TEN FISCAL YEARS Legal Debt Margin Calculation for Fiscal Year 2014 110 111 THIS PAGE INTENTIONALLY LEFT BLANK Utility Less: Net Fiscal Service Operating Available Year Charges Expenses Revenue Principal Interest Coverage 2005 10,198,733 7,251,998 2,946,735 765,000 361,976 1,819,759 2006 13,136,476 8,067,565 5,068,911 795,000 329,451 3,944,460 2007 10,046,030 8,040,621 2,005,409 825,000 296,546 883,863 2008 11,452,268 9,670,881 1,781,387 700,000 265,658 815,729 2009 11,458,282 8,943,803 2,514,479 640,000 241,223 1,633,256 2010 11,427,074 9,458,355 1,968,719 680,000 213,358 1,075,361 2011 14,391,910 10,120,678 4,271,232 920,000 57,819 3,293,413 2012 14,036,325 10,395,517 3,640,808 750,000 77,947 2,812,861 2013 14,698,914 10,707,017 3,991,897 765,000 58,430 3,168,467 2014 14,811,721 11,331,749 3,479,972 775,000 44,137 2,660,835 Notes: Details regarding the City’s outstanding debt can be found in the notes to the financial statements. Operating Debt Service Water Revenue Bonds PLEDGED REVENUE COVERAGE LAST TEN FISCAL YEARS CITY OF COLLEYVILLE, TEXAS 112 TABLE 14 Drainage Drainage Net Service Operations Available Sales Tax Charges Expenses Revenue Principal Interest Coverage Increment Principal Interest Coverage 7 10,265 338,310 3 71,955 175,000 116,432 80,523 982,844 210,000 387,085 385,759 8 97,606 444,700 4 52,906 150,000 111,252 191,654 1,132,094 240,000 402,929 489,165 9 22,123 462,387 4 59,736 160,000 104,206 195,530 1,208,379 255,000 391,366 562,013 9 02,232 510,259 3 91,973 165,000 96,984 129,989 1,300,260 270,000 380,013 650,247 8 89,163 500,677 3 88,486 170,000 90,138 128,348 1,264,385 275,000 368,195 621,190 8 99,870 484,712 4 15,158 175,000 82,930 157,228 1,317,161 290,000 356,290 670,871 9 05,271 551,049 3 54,222 152,163 58,979 143,080 1,319,517 300,000 344,195 675,322 9 20,682 531,705 3 88,977 205,000 51,244 132,733 1,426,909 315,000 331,588 780,321 9 30,427 541,598 3 88,829 210,000 41,733 137,096 1,534,635 330,000 318,365 886,270 9 41,416 416,957 5 24,459 220,000 35,398 269,061 1,673,351 – 138,390 1,534,961 Operating expenses do not include interest, depreciation, or amortization expenses. Debt Service Debt Service Drainage Revenue Bonds Sales Tax Bonds 113 TABLE 15 Tarrant Per Capita County Calendar Personal Personal Unemployment Year Population Income Income Rate 2005 21,000 165,008 54,820 5.1% 2006 21,700 167,009 55,485 4.5% 2007 22,150 175,008 58,142 4.3% 2008 22,500 173,853 57,758 5.1% 2009 22,550 166,063 55,170 8.2% 2010 22,807 166,063 55,354 7.9% 2011 22,860 199,168 65,516 8.3% 2012 22,950 199,168 65,516 6.2% 2013 23,090 199,168 65,516 6.0% 2014 23,740 200,822 66,060 5.0% Sources: CITY OF COLLEYVILLE, TEXAS DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN FISCAL YEARS Population – North Central Texas Council of Governments, personal income – City of Colleyville Economic Development Department, Unemployment Rate – Texas Workforce Commission (unemployment rate is not available solely for the City of Colleyville) 114 TABLE 16 Percentage Percentage of Total City of Total City Employer Employees Employment Employees Employment* Grapevine Colleyville ISD 611 11.8% 720 – % Market Street 325 6.3% 400 – % Lifetime Fitness 230 4.5% – – % City of Colleyville 190 3.7% 162 – % Kroger – – % 150 – % Whole Foods Market 125 2.4% – – % Albertsons 110 2.1% 200 – % Covenant Christian Academy 130 2.5% 80 – % LaHacienda Ranch 100 1.9% 100 – % Walmart Neighborhood Market 72 1.4% – – % Sonshine Academy 60 1.2% 40 – % US Memory Care 60 1.2% – – % Mac’s Steak and Seafood – – % 60 – % Compass Christian Church 50 1.0% – – % Total 2,063 39.9% 1,912 – % Source: City Economic Development Division *This information is unavailable. CITY OF COLLEYVILLE, TEXAS PRINCIPAL EMPLOYERS CURRENT YEAR AND NINE YEARS AGO 2014 2005 115 Function/Program 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 General government Management services 6 6 5 5 4 4 4 4 4 4 Finance/court 7 7 6 6 6 6 6 6 8 8 Planning 3 3 3 3 3 2 2 2 2 4 Building 5 5 5 6 6 5 4 3 3 3.5 Other 5 5 6 6.5 7.5 9.5 11 11 13 12 Police Officers 31 32 35 37 38 38 38 39 40 41 Civilians 10 11 13 14 14 13 6 6 6 6.5 Fire Firefighters and officers 33 33 33 33 33 33 33 35 36 38 Civilians 1 1 1 1 1 2 1 1 1 1 Other public works Engineering 5 5 5 5 5 4 4.5 3 3 4 Other 3 3 3 3 3 3 3 3 3 3 Streets 10 10 10 10 10 10 10 10 7 8 Parks and recreation 12.5 12.5 13.5 13.5 13.5 16.5 16 16 16 16 Library 5.5 5.5 7.5 8 8 9.5 11.5 11.5 12 13 Colleyville center 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 3.5 4 Water/wastewater 25.5 28 29 29 29 28 24 25 23 25 Drainage 6 6 6 6 6 6 6 6 7 6 Total 173.0 177.5 185.5 190.5 191.5 194.0 184.5 185.5 187.5 196.5 Source: City Human Resources Office Notes: A fulltime employee is scheduled to work 2080 hours per year (including vacation and sick leave). Fulltime equivalent employment is calculated by dividing total labor hours by 2080. TABLE 17 Fulltime Equivalent Employees as of September 30, CITY OF COLLEYVILLE TEXAS FULLTIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS 116 TABLE 18 Function/Program 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 General government Building permits issued 2 45 2 70 1 40 1 31 9 0 7 7 1 04 1 55 1 03 1 08 Building inspections conducted 8 ,734 9 ,599 8 ,941 8 ,108 5 ,641 6 ,149 6 ,737 8 ,310 8 ,292 7 ,807 Police Physical arrests 4 04 4 85 6 66 5 14 8 09 7 64 6 66 6 53 6 32 8 63 Calls for service 1 0,668 1 0,546 1 7,629 1 5,292 2 3,480 1 2,242 2 7,254 4 8,076 6 1,270 5 8,522 Traffic violations 7 ,311 1 1,218 1 2,438 1 5,621 1 2,550 1 3,822 1 1,354 1 1,980 1 1,766 1 9,955 Fire Emergency responses 5 10 6 56 7 15 6 81 7 37 7 62 8 30 7 24 5 57 6 27 Ambulance calls 6 09 5 89 6 30 6 67 6 93 7 51 7 65 8 03 8 29 9 50 Inspections 5 60 3 12 5 03 6 66 7 96 7 84 3 97 3 42 3 06 3 17 Other public works Street resurfacing (miles) 3 3 4 .5 8 .5 1 3.9 8 .0 6 .2 1 .0 4 .0 1 .7 Parks and recreation Athletic field participants 6 90 6 02 4 ,960 5 ,159 4 ,617 4 ,296 4 ,378 3 ,946 4 ,287 4 ,315 Community center rentals 5 80 6 37 5 92 6 27 5 07 3 73 4 10 4 04 3 98 4 12 Library Volumes in collection 3 4,656 4 3,378 4 6,311 5 0,348 5 4,659 5 8,147 6 2,997 6 5,740 6 9,736 7 4,525 Total volumes borrowed 1 39,130 1 77,087 1 97,712 2 11,674 2 38,459 2 44,458 2 35,238 2 44,613 2 50,737 2 34,667 Water Customers 8 ,271 8 ,561 8 ,700 8 ,893 8 ,960 9 ,014 9 ,103 9 ,285 9 ,396 9 ,507 Average daily consumption (thousands of gallons) 5 ,951 8 ,081 5 ,123 6 ,619 6 ,578 5 ,990 7 ,928 7 ,217 6 ,785 6 ,539 Peak daily consumption (thousands of gallons) 1 6,126 1 6,732 1 3,068 1 6,764 1 6,674 1 8,207 1 8,935 1 8,707 1 7,052 1 5,204 Wastewater Customers 7 ,563 7 ,761 7 ,966 8 ,138 8 ,315 8 ,389 8 ,457 8 ,603 8 ,731 8 ,817 Source: Various City departments CITY OF COLLEYVILLE, TEXAS OPERATING INDICATORS BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS 117 Function/Program 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Police Stations 1 1 1 1 1 1 1 1 1 1 Patrol units 7 7 1 0 1 3 1 3 1 3 1 3 1 2 1 2 1 2 Fire Stations 2 2 2 3 3 3 3 3 3 3 Public works Streets (miles) 3 00 3 07 3 11 3 12 3 12 3 18 2 82 2 82 2 82 2 83 Streetlights 8 60 9 90 1 ,011 1 ,010 1 ,168 1 ,188 1 ,169 1 ,169 1 ,175 1 ,175 Traffic signals 2 2 2 2 2 2 2 2 2 2 Parks and recreation Acreage 2 12 2 12 2 24 2 24 2 24 2 24 2 24 2 24 2 24 2 24 Playgrounds 5 5 6 6 6 6 6 6 6 6 Baseball/softball diamonds 9 9 9 9 9 9 9 9 9 9 Soccer fields 1 4 1 4 1 4 1 4 1 4 1 4 1 4 1 4 1 4 1 4 Community centers 1 1 1 1 1 1 1 1 1 1 Water Water mains (miles) 1 73 1 75 1 91 1 92 1 99 2 00 1 95 2 01 2 02 2 04 Fire hydrants 1 ,149 1 ,206 1 ,254 1 ,271 1 ,340 1 ,345 1 ,362 1 ,389 1 ,389 1 ,403 Storage capacity 4 ,900 4 ,900 4 ,900 4 ,900 9 ,900 9 ,900 9 ,400 9 ,400 9 ,400 9 ,400 (thousands of gallons) Wastewater Sanitary sewers (miles) 1 50 1 54 1 63 1 64 1 66 1 70 1 62 1 69 1 70 1 72 Storm sewers (miles) 5 7 5 8 5 9 5 9 6 3 6 3 5 8 6 4 5 8 6 0 Source: Various City departments Note: No capital asset indicators are available for the general government or library function. Fiscal Year TABLE 19 CITY OF COLLEYVILLE, TEXAS CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS 118 119 COMPLIANCE 120 THIS PAGE INTENTIONALLY LEFT BLANK INDEPENDENT AUDITORS’ 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 Honorable Mayor and Members of the City Council City of Colleyville, Texas We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Colleyville, Texas (the “City”), as of and for the year ended September 30, 2014, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated January 27, 2015. 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) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the 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. 121 122 Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the 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 determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 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 entity’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 entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Waco, Texas January 27, 2015
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