Lewisville City Council

Transcription

Lewisville City Council
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AGENDA
LEWISVILLE CITY COUNCIL MEETING
MARCH 17, 2014
LEWISVILLE CITY HALL
151 WEST CHURCH STREET
LEWISVILLE, TEXAS 75057
WORKSHOP SESSION - 6:30 P.M.
REGULAR SESSION - 7:00 P.M.
Call to Order and Announce a Quorum is Present.
WORKSHOP SESSION - 6:30 P.M.
A.
Discussion of Regular Agenda Items and Consent Agenda Items
REGULAR SESSION - 7:00 P.M.
A.
INVOCATION: Councilman Ferguson
B.
PLEDGE TO THE AMERICAN AND TEXAS FLAGS: Councilman Durham
C.
PUBLIC HEARINGS:
1.
Public Hearing: Consideration of an Ordinance for a Zone Change
Request From Light Industrial (LI) to Planned Unit Development
(PUD) District Zoning for the “Hills of Vista Ridge” Subdivision
Located on Two Parcels Totaling 26.325 Acres; Identified as Lot 5,
Block B, Campbell Ranch Addition and Tract 5B of the G. Woolsey
Survey, Abstract 1402; as Requested by Amalgamated Development,
L.P., on Behalf of the Property Owner. (Case No. PUD-2014-01-01)
AGENDA
LEWISVILLE CITY COUNCIL
MARCH 17, 2014
ADMINISTRATIVE COMMENTS:
The Planned Unit Development (PUD) district allows for innovative community
design concepts that may contain a mix of uses, and which may not meet all
regulations of the City’s standard zoning categories. Both properties included in
the proposed PUD are currently vacant and are zoned Light Industrial. The
proposed development contains 125 detached single family homes with lot sizes,
setbacks, and square footages similar to those required for the Estate Townhouse
designation. The Planning and Zoning Commission recommended approval of
the request by a vote of 5-1 at their meeting on February 4, 2014.
RECOMMENDATION:
That the City Council consider the ordinance as set forth in the caption above but
require only a wooden fence adjacent to the northern property line next to the
Light Industrial property instead of wood with masonry columns.
PRESENTATION: Nika Reinecke, Director of Economic Development and
Planning
Tom Juhn, JBI Partners, Inc.
2.
Public Hearing: Consideration of the Service and Assessment Plan
and Assessment Roll for Lewisville Castle Hills Public Improvement
District (PID) No. 5.
At the March 3, 2014 meeting, City Council called for a public hearing to
consider the Service and Assessment Plan and Assessment Roll which have been
created to identify public improvements to be provided by the PID along with
related information concerning the costs and indebtedness to be incurred.
Revisions to the plan are currently pending the Attorney General’s opinion.
RECOMMENDATION:
That the City Council open and continue the public hearing until April 7, 2014.
Page 2
AGENDA
MARCH 17, 2014
3.
Public Hearing: Consideration of the Service and Assessment Plan
and Assessment Roll for Lewisville Castle Hills Public Improvement
District (PID) No. 7.
At the March 3, 2014 meeting, City Council called for a public hearing to
consider the Service and Assessment Plan and Assessment Roll which have been
created to identify public improvements to be provided by the PID along with
related information concerning the costs and indebtedness to be incurred.
RECOMMENDATION:
That the City Council open and continue the public hearing until April 7, 2014.
D.
VISITORS/CITIZENS FORUM: At this time, any person with business before
the Council not scheduled on the agenda may speak to the Council. No formal
action can be taken on these items at this meeting.
E.
CONSENT AGENDA: All of the following items on the Consent Agenda are
considered to be self-explanatory by the Council and will be enacted with one
motion. There will be no separate discussion of these items unless a Council
Member or citizen so request. For a citizen to request removal of an item, a
speaker card must be filled out and submitted to the City Secretary.
4.
APPROVAL OF MINUTES:
City Council Minutes of the
March 3, 2014, Workshop Session and Regular Session.
5.
Acceptance of the Fiscal Year 2013 Comprehensive Annual Financial
Report (CAFR).
The independent annual audit of the City's financial statements is complete. The
2013 Comprehensive Annual Financial Report is provided in compliance with the
City Council's Finance Policy Statement 3.0 Section I. The report includes the
auditor's opinion statement regarding the financial statement presentation. Also
included is the Single Audit Report on Federal Financial Assistance.
Page 3
AGENDA
MARCH 17, 2014
RECOMMENDATION:
That the City Council accept the Fiscal Year 2013 Comprehensive Annual
Financial Report (CAFR).
F.
REGULAR HEARINGS:
6.
Consideration of Variance Requests to the Lewisville City Code
Section 6-92 (j) Turning Lanes, Section 6-123 (b) Landscape Strip,
and Section 2-201 Fees, Related to New Construction for the Lee
Walker Government Center, as Requested by Bobbie J. Mitchell,
Denton County Commissioner Precinct 3, Located at 190 North
Valley Parkway.
Denton County is proposing to construct a new Government Center located on their
existing property on Valley Parkway. Two new buildings are proposed for the
project. Phase one of the project includes a 40,700 square foot building at the
northwest corner of Valley Parkway and Civic Circle. Phase Two will consist of a
26,450 square foot building on the southwest corner of Valley Parkway and Civic
Circle. An Engineering Site Plan has been submitted for Phase One and Two that
includes three variances: a) provide modified right turn lanes on Valley Parkway to
Civic Circle and Civic Circle to Valley Parkway, b) provide modified landscape
strips along Valley Parkway and along Civic Circle, and c) waive development fees
in the amount of $41,863.
RECOMMENDATION:
That the City Council approve the variances as set forth in the caption above.
PRESENTATION: Eric Ferris, Director of Community Development
Page 4
AGENDA
MARCH 17, 2014
7.
Consideration of an Ordinance Amending the Lewisville City Code
Chapter 4, Article X Fences, Section 4-453 General Requirements
Amending Certain Single Family Residential Fence Configurations.
The City of Lewisville Fence Ordinance, Section 4-453 General Requirements
and Restrictions (j) states: No fence shall be constructed in the required front
yard building setback area of R, DU, TH, PH, OD or MD zoning districts, except
that a decorative fence may be constructed to a height no greater than 3½ feet
above the finished lot grade and the solid area of such fence shall not exceed 50
percent of the total. New language is being requested to read: “Where a single
family residence on a corner lot has two front yards as required by city ordinance
and the residence is constructed facing one of the two front yards, the second front
yard may be fenced in the same manner as any other side yard provided that the
adjoining lot does not have a residence that fronts the same setback.”
RECOMMENDATION:
That the City Council approve the ordinance as set forth in the caption above.
PRESENTATION: Cleve Joiner, Building Official
8.
Consideration of an Ordinance Approving a Finance Plan for the Tax
Increment Reinvestment Zone Number One (TIRZ #1) Repealing the
Previously Approved Finance Plan.
Council adopted Ordinance 3441-05-2007 adopting the Finance Plan for the TIRZ
#1 in May of 2007. Staff discovered a scrivener’s error which needs to be
corrected.
RECOMMENDATION:
That the City Council approve the amended ordinance as set forth in the caption
above.
Page 5
AGENDA
MARCH 17, 2014
9.
Consideration of an Ordinance Approving a Project Plan for the Tax
Increment Reinvestment Zone Number One (TIRZ #1) Repealing
Previously Approved Project Plan.
Council adopted Ordinance 3442-05-2007 adopting the Project Plan for TIRZ #1
in May of 2007. Following are the changes now being proposed: adding general
goals, modifying non-project costs, adding project costs to the project plan, and
reorganizing the document to improve readability.
RECOMMENDATION:
That the City Council approve the amended ordinance as set forth in the caption
above.
10.
Consideration of an Economic Development Agreement by and
Between the City of Lewisville and Old Town Development Lewisville,
LLC; Approval of a Supplemental Appropriation in the Amount of
$500,000 From General Fund Reserves; and Authorization for the
City Manager to Execute the Contract.
Old Town Development Lewisville, LLC, has submitted a proposal to develop the
1.76 acre City owned property at the N.W. corner of Charles and Church Streets.
The proposal calls for the construction of three high quality restaurants and
associated improvements that represent the peak of market demand for destination
dining. The development will incorporate local architectural features to give the
development a historic feel that represents the unique aesthetics of Old Town
Lewisville. Old Town Development will invest approximately two-million, five
hundred thousand dollars ($2,500,000) to develop the restaurant sites and will
reimburse the City for the value of the land through sales and property tax
payments. Cash payments will be required beginning the 6th year if the value of
the land has not been reimbursed. The proposed agreement is for 15 years and
includes a rebate of sales and property tax, as well as reimbursement for building
permit fees.
Page 6
AGENDA
MARCH 17, 2014
RECOMMENDATION:
That the City Council consider the agreement and supplemental appropriation as
set forth in the caption above.
G.
REPORTS: Reports about items of community interest regarding which no
action will be taken.
H.
CLOSED SESSION: In Accordance with Texas Government Code,
Subchapter D,
1.
Section 551.072 (Real Estate): Property Acquisition
2.
Section 551.074 (Personnel Matters): City Manager or Interim City
Manager - Deliberation of appointment, employment, reassignment,
duties.
3.
Section 551.087 (Economic Development): Deliberation Regarding
Economic Development Negotiations
I.
RECONVENE into Regular Session and Consider Action, if Any, on Items
Discussed in Closed Session.
J.
ADJOURNMENT
The City Council reserves the right to adjourn into closed session at any time during the course of this
meeting to discuss any of the matters listed above, as authorized by Texas Government Code Section
551.071 (Consultation with Attorney), 551.072 (Deliberations about Real Property), 551.073 (Deliberations
about Gifts and Donations), 551.074 (Personnel Matters), 551.076 (Deliberations about Security Devices)
and 551.087 (Economic Development).
Page 7
MEMORANDUM
TO:
Claude King, City Manager
FROM:
Nika Reinecke, Director of Economic Development and Planning
DATE:
February 6, 2014
SUBJECT:
Public Hearing: Consideration of an Ordinance for a Zone Change
Request From Light Industrial (LI) to Planned Unit Development
(PUD) District Zoning for the “Hills of Vista Ridge” Subdivision
Located on Two Parcels Totaling 26.325 Acres; Identified as Lot 5,
Block B, Campbell Ranch Addition and Tract 5B of the G. Woolsey
Survey, Abstract 1402; as Requested by Amalgamated Development,
L.P., on Behalf of the Property Owner. (Case No. PUD-2014-01-01)
BACKGROUND
The Planned Unit Development (PUD) district allows for innovative community design
concepts that may contain a mix of uses, and which may not meet all regulations of the
City’s standard zoning categories but allow for higher standards in certain areas. Both
properties included in the proposed PUD are currently vacant and zoned Light Industrial.
Tract 1, located at the northeast corner of Vista Ridge Mall Drive and Oakbend Drive, is
the larger of the two tracts and consists of 14.62 acres. It abuts an undeveloped Light
Industrial lot to the north and existing apartments to the east. This tract is proposed to
include 72 residential lots and one open space lot maintained by a Home Owners’
Association (HOA). Tract 2 is located on the south side of Vista Ridge Mall Drive, at the
southern terminus of Oakbend Drive, and consists of 11.705 acres. It is surrounded by
apartments and single-family residences on three sides. Tract 2 is proposed to have 53
residential lots and one open space lot maintained by the HOA.
ANALYSIS
The proposed PUD contains a total of 125 residential lots with minimum widths of 50 feet
and lengths of 110 feet, for a total minimum lot area of 5,500 square feet. It also features
two open space lots with walking paths, benches, grilling areas and a shade structure. The
community will be managed by a Home Owners’ Association responsible for maintaining
the common areas.
Dwelling Unit Size
Proposed unit sizes are mainly 2,000 to 3,200 square feet. A maximum of 12 units would
be allowed to be a minimum of 1,700 square foot in size.
Subject: Public Hearing Zone Change Hills of Vista Ridge
February 6, 2014
Page 2 of 3
Façade Requirements




garage doors clad in stained natural cedar or faux wood;
driveways made of decorated pavers or stained and stamped or patterned saw-cut or
salt-finished concrete;
Minimum 75 percent brick masonry coverage of the total structure with 100 percent
on the front elevation (exclusive of doors, windows, trim and architectural
features);
All façades facing Oakbend Drive or Vista Ridge Mall Drive are also required to be
100 percent masonry.
Setback Requirements and Lot Coverage
Minimum front setbacks are 15 feet for swing-in garages, or 20 feet for front-entry garages,
which is the same as Estate Townhouse (ETH) zoning. Side yards have a minimum five
(5) feet setback and rear yards have a minimum depth of 15 feet. No more than 60 percent
lot coverage by the main building and accessory buildings is permitted.
Screening Wall and Fencing Requirements (Exhibit Attached)

Masonry screening walls will be constructed along Vista Ridge Mall Drive and
Oakbend Drive as required by the GDO. Masonry screening walls will also be
constructed along the eastern property line on the northern tract (Tract 1) where the
PUD abuts the existing multi-family development of Chapel Hill Apartments as
required by the GDO.

A wood fence is proposed adjacent to Light Industrial zoning on the northern
boundary of Tract 1, as the GDO does not require a masonry wall at this time. The
Light Industrial development is required to construct a Masonry wall at the time of
development. The exhibit shown at the P&Z meeting for this location showed wood
fence with masonry columns which was an error on the part of the developer. The
applicant has revised the wood fence detail to include only the required wood fence,
removing the previously shown stone column, since the future Light Industrial user
would be required to install a masonry screening wall in that location.

Tract 2, located on the south side of Vista Ridge Mall Drive, abuts multi-family on
the majority of its boundaries and single-family residential on a portion of its
southeastern border.
The Broadstone Vista Ridge Apartment complex,
immediately south and east of the subject property, has an ornamental iron fence
along the common property line. The GDO requires a masonry screening wall
along this boundary, however the applicant is proposing to install a six foot wood
fence in lieu of the required masonry wall.

A masonry wall is required and proposed along common eastern boundary line of
the Vista Ridge Condominiums. Currently there is an existing wood fence
separating these properties.
Subject: Public Hearing Zone Change Hills of Vista Ridge
February 6, 2014
Page 3 of 3
Additional Amenities
One purpose of a Planned Unit Development zoning district is to accommodate innovative
design concepts and provide flexibility on development standards in order to achieve a
more desirable development. In this case, staff has requested that the applicant include
additional amenities in at least one of the two open space lots such as a splash park,
playground equipment, bocce ball courts, or other features that will differentiate the Hills
of Vista Ridge from other small lot communities. Currently, the open areas contain
minimal amenities, which would typically not be sufficient enough to warrant a PUD
designation. The developer argued that additional amenities would not be desirable
because it could cause liability issues for the HOA and increase the maintenance cost and
thus HOA dues in the future.
The Planning and Zoning Commission agreed with the applicant on the provided amenities
as shown (landscaping and benches) and recommended approval of the PUD by a vote of
5-1, at their February 4, 2014, meeting. The one dissenting vote was from Kristin Green,
who noted concern about taking commercial property off of the tax rolls and funding the
long-term infrastructure costs.
RECOMMENDATION
It is City staff’s recommendation that the City Council consider the ordinance as set forth
in the caption above but require only a wooden fence adjacent to the northern property
line next to the Light Industrial property instead of wood with masonry columns.
MINUTES
PLANNING AND ZONING COMMISSION
FEBRUARY 4, 2014
Item 5:
Public hearing zoning cases were the next item on the agenda. There was one item for consideration,
continued from the January 7, 2014 meeting.
A. Continued: Consideration of a Zone Change Request from Light Industrial (LI) to Planned Unit
Development (PUD) for the “Hills of Vista Ridge” on Two Parcels Totaling 26.325 acres.
Tract 1 is Located at the Northeast Corner of Oakbend Drive and Vista Ridge Mall Drive and
Tract 2 is Located on the South Side of Vista Ridge Mall Drive at the Southern Terminus of
Oakbend Drive; Further Identified as Lot 5, Block B, Campbell Ranch Addition and Tract 5B
of the G. Woolsey Survey, Abstract 1402, respectively. The Request is Being Made by
Amalgamated Development, L.P. on Behalf of the Property Owner. (Case No. PUD-2014-0101)
Staff presented the zone change request and explained that the Planned Unit Development (PUD) district
allows for more integrated community design concepts that may not meet all regulations of the City’s
standard zoning categories. Staff further explained that the proposed development will consist of 125
single-family residential lots with two open space lots. Staff recommended additional recreational
amenities on at least one of the open space lots. Commissioner Kristin Green expressed concern about
taking the property off tax rolls and long-term infrastructure costs. Tom Juhn, representing
Amalgamated Development, responded to concerns about the amenities by explaining that they felt
passive recreation would be more appropriate due to the close proximity with the homes. Next, Fred
Philips presented an overview of the project and discussed the enhanced architectural features of the
development. A resident abutting the property inquired about the ownership of the new screening fence
to which staff confirmed that the residents of the new subdivision will be responsible for maintenance of
the screening fence. There being no one else present to speak, the public hearing was closed. A motion
was made by Brent Daniels to recommend approval of the zone change request, seconded by Steve
Byars. The motion passed by a vote of 5-1 with commissioner Kristin Green voting in opposition.
²
OAKBEND DRIVE
LI
1 inch = 355 feet
MF1
LI
LI
SUBJECT
PROPERTIES
TA
VIS
RID
M
GE
AL
R
LD
IV E
MF2
MF2
R6
LI
R7.5
LI
MF1
ZONING CASE NO. PUD-2014-01-01
NAME:
AMALGAMATED DEVELOPMENT, L.P.
PROPERTY LOCATION:
TWO PARCELS TOTALING 26.325 ACRES, TRACT 1 LOCATED AT NORTHEAST
CORNER OF OAKBEND DRIVE AND VISTA RIDGE MALL DRIVE AND TRACT 2
LOCATED ON THE SOUTH SIDE OF VISTA RIDGE MALL DRIVE AT THE SOUTHERN
TERMINUS OF OAKBEND DRIVE; FURTHER IDENTIFIED AS LOT 5, BLOCK B,
CAMPBELL RANCH ADDITION AND TRACT 5B OF THE G. WOOLSEY SURVEY,
ABSTRACT 1402.
CURRENT ZONING:
LIGHT INDUSTRIAL (LI)
PROPOSED ZONING:
PLANNED UNIT DEVELOPMENT (PUD)
IIPLEWISVILLE
P2 Meeting:
JCCM. etinS:
case*
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z
13.—J1 - 02,
.
itma
DO NOT WRITE AaOVE THIS UNE
ECONOMIC DEVELOPMENT& PLANNING DIVISION
APPLICATION FOR ZONE CHANGE
OWNER/APPLICANT/AGENT INFORMATION SECTION ( OWNER( S) MUST SIGN OR SUBMIT LETTER(S) OF AUTHORIZATION)
Hawkeye Realty Campbell Ranch, L. P.
NAME OF PROPERTY OWNER:
4809 Cole Avenue, Suite 245, Dallas TX 75205
MALINGADDRESS:
PHONE NUMBER:
2-.
/ -?
260
OWNER SIGNATURE:
PRINTED NAME& TITLE(
a i47
FA> NO.:
i
"
iv
file ru 14:)(
IF ANY):
1 of
214- 9 4- 980
FAX NO.:
Fred- Phi{ff i
):
tl
s-
ti
A, A„^ 4c
10/ 29/ 201,_
3
hi
vt
p .
n
c. Id
l
So. 41/
16301 Quorum Dr. Suite 200B, Addison, TX 75001
IFANV):
LI
E- MAL: [email protected]
AX NO
i
AGENT SIGNATURE:
s
DATE:
..
Thnmac J
ihn
PF /
REQUESTED ZONING:
10/ 29/2013
Pre ident
POD
PROPERTY IDENTIFICATION( LOTS. BLOCKS. TRACTS. ABSTRACTS)
TOTAL LAND AREA( ACRES)
Tract 1 -
14. 62
ac. out of
BBB&
26. 3
CRR Co Survey-
ABS 1457, GC Woolsey Survey- ABS 1402. Tract 2- 11. 705 ac. out of GC Woolsey Survey- ABS 1402
On Vista Ridge Mall Dr. east of Oakbend Dr.
ADDRESS AND LOCATION OF THE PARCEL(S):
APPLICATION& SIGN FEES ( Please fill In appropriate blanks and enter total fee due)
Less than 1/ 2
1/ 2
acre
up to 4.99 acres
5
a
of
X
150.00
axle
5 acres up to 24.99 acres
I
QA j
JBI Partners, Inc.
IF Amy):
972- 738- 0226
PRESENT ZONING:
Za&.
fsDi87(c) gmail. com
EMAIL:
DATE:
I
REPRESENTING AGENT(
PHONE NUMBER:
10/ 29/ 2013
p&,y
t`??-
APPLICANT SIGNATURE:
MAILING ADDRESS:
DATE:
1 '..‘'./
5055 Keller Springs Road, Suite 545, Addison, TX 75001
MAILING ADDRESS:
NAME OF
4:
Amalgamated Development, L. P.
NAME OF APPLICANT ( FILL IN gay, OTHER THAN OWNER):
PHONE NUMBER:
6.% (J
EMAIL:
$
$
25
up to 49.99
acres
$
750.00
250.00
50 acres up to 99.99 acres
$
1, 000.00
400.00
100
Zone Change Signs
at$
35
saes
per sign
1 sign required for each 5 acres( maximum of 5 signs per site)
TOTAL DUE $
925
1, 500.00
acres and more
I$
175
0(
LEWISVILLE
PROPOSED USE (
Required to be filled out before submitting application)
Fully describe the', reposed use(sl and alans for the Drmverty:
Residential Subdivision Development
NOTE:
Items submitted by the submittal date does not guarantee placement on an agenda.
Items must be deemed complete before they will be placed on an agenda.
Economic Development& Planning
151 W. Church Street• P. Q. Box 299009 •
Lewisville, Texas 75029- 9002
Tel: 972-219- 3455 •
Fax: 972- 219- 3698
www. cityoflewisvilie.com
SECTION 17-26. - "PUD" PLANNED UNIT DEVELOPMENT REGULATIONS
(a)
Purpose. The purpose of a planned unit development "PUD" is to accommodate planned
associations of uses developed as integral land use units such as industrial parks or industrial
districts, offices, commercial uses, service centers, shopping centers, residential developments of
multiple or mixed housing, including multi-family dwellings, single family dwellings, townhouses or
any appropriate combination of uses which may be planned, developed or operated as integral land
use units whether by single owner or by a combination of owners. This zoning district shall be
permitted for tracts of land not less than five (5) acres in area.
(b)
Procedure. The stages or procedure for a planned unit development shall be as follows:
(1)
The application for PUD zoning (Section 26.03).
(2)
The submission of a development plan (Section 26.04).
(3)
The submission of a project plan (Section 26.05).
(c)
Zoning of PUD districts.
(1)
Submission of application. Any person or corporation or group of persons having a
proprietary interest in any property of five (5) acres or more, may file an application for PUD
zoning.
(2)
Data to accompany application. The application for PUD zoning shall include a preliminary
plat as well as the following:
a.
Metes and bounds description of the overall tract with topographic information
necessary to project the natural terrain and environmental character of the site.
b.
A written description of the existing and allowable land use surrounding the
proposed PUD district.
c.
A written description of planning assumptions and projections relating the PUD to
the overall community growth and planning goals.
d.
A plan indicating location of major and secondary thoroughfares, as proposed
within the city master thoroughfare plan.
e.
A categorical listing of the total acreage for each land use related to current zoning
district designations or the specific purpose. The designated usage will not be
assumed to establish the area requirements as established within the zoning
district. All setbacks, height, and coverage will be determined by the approved final
development plan.
f.
Indication by acreage or percentage of total development, all major areas planned
for public or private common open space.
g.
All applications with gross land area of one hundred (100) acres or less shall
submit a graphic plan of proposed land use. Applications with gross land area of
more than one hundred (100) acres shall have the option of filing either a graphic
plan or a perimeter plan indicating land use to a depth of three hundred (300) feet
around the exterior of the total site.
h.
A written indication of the maximum number of residential dwelling units to be
constructed within the total PUD district.
(3)
Staff review and recommendations. The technical staff shall, as soon as practical, issue a
written report thereon to the planning commission, a copy of which shall be furnished to the
applicant.
(4)
Planning commission hearing. The planning commission shall hold a public hearing on any
application for PUD zoning district prior to making its recommendation to the city council in
accordance with standard procedures for a change of zoning.
(5)
PUD open space policy. All open space shall be provided at a minimum ratio of .01 acres
for each residential unit. For single family use, the open space may be calculated including
front setback areas. Private ownership of these areas is permitted, subject to the following
conditions:
a.
All private park areas shall have grounds and equipment maintained in an
attractive manner comparable with the neighborhood.
b.
Private park areas must be committed to permanent open space by deed
restrictions.
LEWISVILLE ZONING ORDINANCE
76
(d)
(e)
Development plan.
(1)
Submission of development plan. After the granting of PUD zoning, and as the applicant
desires to develop the PUD district, or any portion thereof, he shall submit a development
plan to the city. If the applicant so desires, separate development plans may be submitted
at separate times for portions or sub-areas of the PUD.
(2)
Contents. The development plan shall include a final plat as well as the following
information:
a.
A description of the area or sub-area included in the development plan by
dimensions and bearings on an accurate survey with topography grades of not
more than two (2) feet.
b.
A general description of the surrounding area.
c.
Provisions for public or private streets, alleys, storm sewers, sanitary sewers,
setbacks and utility easements.
d.
Percentage or acreage of project land uses either for the total area or sub-area
consistent with the designated current zoning district categories or detailed land
use as established in the zoning ordinance.
e.
Designation and location of open space for total site or sub-area.
f.
Maximum number and type of residential dwelling units to be constructed in said
area or sub-area.
g.
Anticipated development schedule.
h.
Protective and restrictive covenants and homeowners' association charters, if any.
i.
In those instances where development plans are submitted for sub-areas, applicant
shall demonstrate that composite projected land uses and maximum number of
dwelling units approved in the PUD zoning have not been exceeded and that open
space requirements are consistent with approved ordinance.
(3)
Staff review. Upon submission of a development plan for PUD or a sub-area thereof, the
technical staff shall confer and consult with the applicant and may make recommendations
to the land owner for amplification, deletion or modification thereof. After a full opportunity
for consultation between applicant and the technical staff, the development plan shall be
submitted to the planning commission which will make its recommendation to the city
council. No advertised public hearing is required so long as both staff and city council
believe there are no significant variances to the zoning requirements or restrictions as
determined by section 26.03 of this ordinance. No notice to the adjacent land owners shall
be given so long as both staff and the city council believe the specific uses designated by
the PUD ordinance are not being substantially modified.
Project plan.
(1)
Submission. After city council approval of the development of a planned unit development,
the applicant shall submit a project plan showing or describing each project as it is to be
built. No building permit shall be issued prior to approval of the project plan.
(2)
Contents. The project plan for each development shall include an engineering site plan as
well as the following information:
a.
Detailed planned uses.
b.
Actual location of all buildings to be constructed indicating the governing setback
lines, if any.
c.
Provisions for any additional public or private streets, alleys, or utility easements
not previously reflected on appropriate development plan.
d.
Protective and restrictive covenants applicable to the project, if any.
(3)
Staff review. Upon submission of a project plan to the city, the technical staff shall confer
with the applicant and may make recommendations to the land owner for amplification,
deletion or modification thereof. After a full opportunity for consultation, the staff shall
submit its recommendation to the planning commission for the project plan as submitted, or
as may be modified, a copy of which shall be furnished to the applicant.
LEWISVILLE ZONING ORDINANCE
77



SHADE STRUCTURE
WITH BENCHES
5' WIDTH TRAIL
LANDSCAPE
PLANTING
ORNAMENTAL TREES
(TYPICAL)
SIDEWALK PER
CITY STANDARDS
SHADE TREES
(TYPICAL)
PICNIC TABLE WITH
GRILL AND TRASH CAN
ORDINANCE NO. ______________
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF LEWISVILLE, TEXAS AMENDING CHAPTER 6
(LAND DEVELOPMENT REGULATIONS) AND CHAPTER
17 (ZONING) OF THE LEWISVILLE CITY CODE;
REZONING APPROXIMATELY 26.325 ACRES LOCATED
IN LOT 5, BLOCK B OF THE CAMPBELL RANCH
ADDITION AND TRACT 5B OF THE G. WOOLSEY
SURVEY ABSTRACT 1402 FROM LIGHT INDUSTRIAL
(LI) ZONING TO PLANNED UNIT DEVELOPMENT 1;
CREATING THE REGULATIONS FOR PLANNED UNIT
DEVELOPMENT 1; CORRECTING THE OFFICIAL
ZONING MAP; PROVIDING SEVERABILITY, SAVINGS,
AND REPEALING CLAUSES; PROVIDING A PENALTY
FOR THE VIOLATION OF THIS ORDINANCE; AND
DECLARING AN EMERGENCY.
WHEREAS, the Planning and Zoning Commission of the City of Lewisville, Texas has
recommended that the approximately 26.325 acre properties described in the attached Exhibit "A"
(the “Property”) be rezoned from Light Industrial (LI) to Planned Unit Development 1; and
WHEREAS, this application for rezoning comes before the City Council of the City of
Lewisville, Texas (the “City Council”) after all legal notices, requirements, conditions and
prerequisites have been met; and
WHEREAS, the City Council at a public hearing has determined that this rezoning is
consistent with the general purpose of the City’s Zoning Ordinance as set forth in Section 17-2 of
the Lewisville Code of Ordinances; and
WHEREAS, the City Council also finds that this rezoning helps promote the general
health, safety, and welfare of its community; and
ORDINANCE NO. ______________
Page 2
WHEREAS, the City Council further finds that it is in the best interest of the City of
Lewisville (the “City”), its citizens, and the public at large to rezone the Property as set forth
below.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF LEWISVILLE, TEXAS, THAT:
SECTION 1. Findings Incorporated. The findings set forth above are incorporated
into the body of this Ordinance as if fully set forth herein.
SECTION 2.
Rezoning. Chapter 17 (Zoning) and Chapter 6 (Land Development
Regulations) of the Lewisville City Code are hereby amended and the Property is hereby rezoned
from Light Industrial (LI) to PLANNED UNIT DEVELOPMENT (PUD) 1 (the “District”).
Development of the District and Property shall be subject to the conditions set forth in this
Ordinance. Except as explicitly amended by this Ordinance, the development of the Property
within this District must comply with the requirements of all ordinances, rules, and regulations of
Lewisville, as they currently exist or may be amended.
SECTION 3. Conceptual Plan. The Property shall be developed in compliance with the
conceptual plan attached hereto as Exhibit B. If there is a conflict between the text of this
Ordinance and the conceptual plan, the text of this Ordinance shall control.
SECTION 4. Development Plan and Project Plan. A development plan and project
plan as required by Section 17-26 of the Lewisville City Code must be approved by the City
Council before any building permit can be issued to authorize work in this District. If there is a
conflict between these plans and the text of this Ordinance, the order of precedence shall be as
Planned Unit Development 1
ORDINANCE NO. ______________
Page 3
follows: (1) the text of this Ordinance; followed by (2) the project plan; followed by (3) the
development plan; followed by (4) the conceptual plan.
SECTION 5. Uses Permitted. The only uses permitted in this District are those uses
permitted in the Estate Townhouse Residential Zoning District (“ETH Zoning District”), as set
out in the City’s Zoning Ordinance, as amended. Such uses are also subject to the same
conditions applicable in the ETH Zoning District. For example, a use permitted in the ETH
Zoning District only by specific use permit is permitted in this District only by specific use
permit.
Uses may be further limited by required compliance with the conceptual plan,
development plan, or project plan.
SECTION 6. Yard, Lot, and Space Regulations.
a) Front Yard. Minimum front yard setback is 15 feet, except Lot 4 in Block C shall
have one front yard with a minimum setback of 10 feet as shown on Exhibit “B”,
attached hereto. If the entry side of any garage faces a street, the minimum
setback for that garage is 20 feet.
b) Side Yard. Minimum side yard setback is 5 feet.
c) Rear Yard. Minimum rear yard setback is 15 feet.
d) Lot Area. Minimum lot area is 5,400 square feet.
e) Lot Width. Minimum lot width is 50 feet at the front building line. For corner lots,
minimum lot width is 20 feet at the front property line.
f) Minimum Dwelling Size. Except as otherwise provided herein, the minimum
floor area of homes in the District shall be 2,000 square feet, exclusive of garages
ORDINANCE NO. ______________
Page 4
and porches. Exception: 12 homes in the District may have a minimum floor area
of 1,700 square feet, exclusive of garages and porches.
g) Lot Coverage. Total lot coverage (the combined floor area of all structures on a
lot) may not exceed 60 percent of the total lot area.
h) Height. Maximum height is 35 feet.
i) Stories. Maximum number of stories is 2.5.
SECTION 7. Building Elements.
a) Garages.
(1) Lots may have front-entry garages.
(2) Garage doors shall be clad in stained natural cedar or faux wood.
(3) Detached garages are prohibited.
b) Carports. Carports are prohibited.
c) Design of Homes. The design and construction of homes in this District shall be
similar in composition and architectural character to the elevations attached as
Exhibit “C”.
d) Driveways. Driveways shall be wholly constructed of either decorative pavers,
exposed concrete aggregate, stained and stamped concrete, patterned saw cut
concrete, or salt finished concrete.
e) Construction Materials.
(1) Roofing material used on homes within the District shall be a
minimum 30-year dimensional shingle.
ORDINANCE NO. ______________
Page 5
(2) A minimum of 75% of all exterior walls of a structure and 100% of the
front facade of a structure shall be brick, exclusive of doors, windows,
trim and architectural features (ie. shutters, dormers, etc.).
(3) Any side of a structure facing Oakbend Drive or Vista Ridge Mall
Drive must be 100% brick or stone.
f) Fences.
(1) All homes shall have stained wood fences with metal posts that
comply with the City’s fencing regulations in Section Chapter 4,
Section 4-453 of the Lewisville City Code.
(2) Lots backing up to the Open Space Areas described below shall have
an ornamental wrought iron or tubular steel fence at the rear property
line with a living, irrigated screen as illustrated in Exhibit “D”.
g) Screening Walls. Where wooden screening walls are permitted by Article VII of
the Lewisville City Code along the perimeter of the subdivision, such walls shall
be interspersed with stone columns and be located as illustrated in Exhibit “E”.
Where masonry screening walls are required by Article VII of the Lewisville City
Code, they shall be a thin brick wall with brick columns interspersed with stone
columns every 100 feet on center as illustrated and be located in Exhibit “E”.
SECTION 8. Landscaping, Open Areas, and Common Areas.
(a) Landscaping. Except as provided in this section, consult the landscaping
regulations in Article VI of the Lewisville City Code for the specific landscaping
ORDINANCE NO. ______________
Page 6
requirements. All lots shall be fully sodded, landscaped, and irrigated.
Landscaping shall be installed and maintained in accordance with the landscaping
plan attached as Exhibit “F”.
(b) Open Space Areas.
There shall be two open space areas provided, one on the
northern tract and the other on the southern tract. The open space area located on
the northern tract shall comply with Exhibit “D” and shall contain ornamental
trees, landscape plantings, shade trees, a five-foot wide paved meandering trail,
picnic tables, benches, a pavilion, outdoor grill, and open space/turf area of
approximately 0.721 acres. The open space area on the southern tract shall
comply with Exhibit “D” and shall contain a shade structure with benches, shade
trees, ornamental trees, landscape plantings, picnic table, a grill, a five-foot wide
paved trail and open space/turf area of approximately 0.607 acres. Providing this
open space shall not exempt the Property from park fees and/or any other
development fees otherwise required by the Lewisville City Code.
(c) Homeowner’s
Association
Required.
A
homeowner’s
association
(the
“Association”) for the entire District shall be established and be responsible for
the maintenance of all common areas, including but not limited to open space
areas. The Association shall have the obligation to maintain the common areas to
the same extent that the owners or occupants of individual lots have the obligation
to maintain their lots and in accordance with all City of Lewisville ordinances.
ORDINANCE NO. ______________
Page 7
(d) Default of Home Owner’s Association. In the event the Home Owners
Association consistently defaults on its obligation to maintain the Common Areas
in compliance with the covenants or restrictions herein set forth and the City
receives a petition from 100% of the property owners within the subdivision to
assume the maintenance responsibility of the Common Areas, the City may
choose to assume the maintenance responsibilities upon approval from the City
Council.
In such an event that the City agrees to assume the maintenance
responsibilities, all Common area properties shall be dedicated to the City as
public Rights-of-Ways, without having any obligation for a higher level of
maintenance within the subdivision. Upon dedication of the Common Areas to
the City, the City has the right to add or remove any appurtenances or structures
that may impede the City’s ability to perform its maintenance obligations. The
City shall have the right to assess the property owners for any incurred demolition
costs.
SECTION 9. Additional Provisions.
(a) Maintenance. The Property must be properly maintained in a state of good repair
and neat appearance.
(b) Compliance with All Laws. Development and use of the Property must comply
with all federal and state laws and regulations and with all ordinances, rules, and
regulations of the City.
ORDINANCE NO. ______________
Page 8
(c) This Ordinance is not a Stand-Alone Document. Except as explicitly amended by
this Ordinance, the development, operation, and maintenance of the Property and
the District must comply with the requirements of all ordinances, rules, and
regulations of Lewisville, as they currently exist or may be amended. Development
rights, therefore, are determined by reading this Ordinance in conjunction with the
Lewisville City Code, including but not limited to the Lewisville Zoning Code and
Chapter 6 of the Lewisville City Code (Land Development Regulations).
SECTION 10. Correction of the Zoning Map. The City Manager is hereby directed to
correct the official zoning map of the City of Lewisville, Texas, to reflect this change in zoning.
SECTION 11.
Savings Clause. This Ordinance shall be cumulative of all other
ordinances of the City of Lewisville, Texas, affecting zoning and shall not repeal any of the
provisions of said ordinances, except in those instances where provisions of those ordinances
which are in direct conflict with the provisions of this Ordinance.
SECTION 12. Severability Clause. That the terms and provisions of this Ordinance
shall be deemed to be severable and that if the validity of the zoning affecting any portion of the
tract or tracts of land described in the attached Exhibit "A" shall be declared to be invalid, the same
shall not affect the validity of the zoning of the balance of the tract or tracts of land described
herein.
SECTION 13. Penalty. Any person, firm or corporation who violates any provision of
this Ordinance shall be deemed guilty of a misdemeanor and, upon conviction thereof in the
ORDINANCE NO. ______________
Page 9
Municipal Court, shall be subject to a fine of not more than $2,000.00 for each offense, and each
and every day such offense is continued shall constitute a new and separate offense.
SECTION 14. Emergency Declared. The fact that the present Zoning Ordinance and
regulations of the City of Lewisville, Texas, are inadequate to properly safeguard the health, safety,
peace and general welfare of the inhabitants of the City of Lewisville, Texas, creates an emergency
for the immediate preservation of the public business, property, health, safety and general welfare
of the public which requires that this Ordinance shall become effective from and after the date of
its final passage, and it is accordingly so ordained.
DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
LEWISVILLE, TEXAS, BY A VOTE OF _____ TO _____, ON THIS THE 17th DAY OF
MARCH, 2014.
APPROVED:
____________________________________
Dean Ueckert, MAYOR
ATTEST:
__________________________________________
Julie Heinze, CITY SECRETARY
APPROVED AS TO FORM:
__________________________________________
Lizbeth Plaster, CITY ATTORNEY
Attachment to
Ordinance # ________________________________
Exhibit "A"
Page 1 of 2
LEGAL DESCRIPTION
TRACT 1
BEING a parcel of land located in the City of Lewisville, Denton County, Texas, a part of the B. B. B. &
C. R. R. CO. Survey, Abstract No. 1457, a part of the G. C. Woolsey Survey, Abstract No. 1402, being all of
Lot 5, Block B of Campbell Ranch Addition, an addition to the City of Lewisville as recorded in Cabinet U,
Page 777, Denton County Plat Records, and being further described as follows:
BEGINNING at the southeast corner of said Lot 5, said point being the southwest corner of Lot 5BR- 1,
Block A, Phase 4 of Vista Ridge Square, an addition to the City of Lewisville as recorded in Cabinet R,
Page 87, Denton County Plat Records, and said point being in the north line of Vista Ridge Mall Drive ( a
variable width right-of-way) as recorded in Cabinet 0, Page 192, Denton County Plat Records;
THENCE with the south line of said Lot 5 and the north line of said Vista Ridge Mall Drive as follows:
South 63 degrees 22 minutes 08 seconds West, 398.01 feet to a point for corner;
South 70 degrees 44 minutes 17 seconds West, 93. 56 feet to a point for corner;
South 63 degrees 22 minutes 08 seconds West, 90. 13 feet to a point for corner;
North 71 degrees 37 minutes 52 seconds West, 21. 21 feet to the southwest corner of said Lot 5,
said point being in the east line of Oakbend Drive (a variable width right-of-way), as recorded in Cabinet
U, Page 777, Denton County Plat Records;
THENCE along the west line of said Lot 5 and the east line of said Oakbend Drive as follows:
North 26 degrees 37 minutes 52 seconds West, 23. 01 feet to a point for corner;
Northwesterly, 440.56 feet along a curve to the right having a central angle of 26 degrees 01
minutes 22 seconds, a radius of 970.00 feet, a tangent of 224. 14 feet, whose chord bears North 13
degrees 37 minutes 11 seconds West, 436. 78 feet to a point for corner;
North 00 degrees 36 minutes 30 seconds West, 634. 10 feet to the northwest corner of said Lot
5, said point being the southwest corner of Lot 4, said Block B;
THENCE North 89 degrees 23 minutes 30 seconds East, 661. 03 feet to the northeast corner of said Lot 5,
said point being the southeast corner of said Lot 4 and said point being in the west line of said Lot 5BR- 1;
THENCE along the east line of said Lot 5 and the west line of said Lot 5BR- 1 as follows:
South 00 degrees 28 minutes 13 seconds East, 477. 96 feet to a point for corner;
South 00 degrees 02 minutes 01 seconds West, 365. 21 feet to the POINT OF BEGINNING and
containing 636, 860
square
feet
or
14. 620
acres of
land.
Attachment to
Ordinance # ________________________________
Exhibit "A"
Page 2 of 2
LEGAL DESCRIPTION
TRACT 2
BEING a parcel of land located in the City of Lewisville, Denton County, Texas, a part of the G. C. Woolsey
Survey, Abstract No. 1402, being a part of that called 848. 2300 acre tract of land described in a special
warranty deed from Robert Payne, et al, to Hawkeye Realty Campbell Ranch, L. P., as recorded in
Instrument No. 2008-72709, Denton County Deed Records, and being further described as follows:
BEGINNING at the northwest corner of Lot 2R- 1, Block A, of Club Ridge Addition, an addition to the City
of Lewisville as recorded in Cabinet P, Page 107, Denton County Plat Records, said point also being the
northwest corner of Vista Ridge Condominiums, as recorded in Instrument No. 2007- 13790, Denton
County Deed Records, and said point being in the south line of Vista Ridge Mall Drive (a variable width
right- of-way) as recorded in Cabinet 0, Page 192, Denton County Plat Records;
THENCE South 00 degrees 02 minutes 22 seconds West, 342. 40 feet to the southwest corner of said Lot
2R- 1, said point being the southwest corner of said Vista Ridge Condominiums, said point also being the
northwest corner Vista Ridge Estates, an addition to the City of Lewisville as recorded in Cabinet L, Page
293, Denton County Plat Records;
THENCE South 00 degrees 00 minutes 24 seconds West, 610.26 feet with the west line of said Vista
Ridge Estates to the northeast corner of Lot 1, Block A of Broadstone Vista Ridge Addition, an addition to
the City of Lewisville as recorded in Cabinet W, Page 375, Denton County Plat Records;
THENCE with the north line of said Lot 1 as follows:
North 89 degrees 58 minutes 55 seconds West, 350.45 feet to a point for corner;
North 54 degrees 52 minutes 37 seconds West, 330.51 feet to a point for corner;
North 26 degrees 42 minutes 40 seconds West, 403. 12 feet to a point in the south line of said
Vista Ridge Mall Drive;
THENCE North 63 degrees 22 minutes 08 seconds East, 897. 50 feet to the POINT OF BEGINNING and
containing 509, 872
square
feet
or
11. 705 acres
of
land.
Attachment to
Ordinance # ________________________________
Exhibit "B"
Page 1 of 1
Attachment to
Ordinance # ________________________________
Exhibit "C"
Page 1 of 5
Attachment to
Ordinance # ________________________________
Exhibit "C"
Page 2 of 5
Attachment to
Ordinance # ________________________________
Exhibit "C"
Page 3 of 5
Attachment to
Ordinance # ________________________________
Exhibit "C"
Page 4 of 5
Attachment to
Ordinance # ________________________________
Exhibit "C"
Page 5 of 5
Attachment to
Ordinance # ________________________________
Exhibit "D"
Page 1 of 1
SHADE STRUCTURE
WITH BENCHES
5' WIDTH TRAIL
LANDSCAPE
PLANTING
ORNAMENTAL TREES
(TYPICAL)
SIDEWALK PER
CITY STANDARDS
SHADE TREES
(TYPICAL)
PICNIC TABLE WITH
GRILL AND TRASH CAN
Attachment to
Ordinance # ________________________________
Exhibit "E"
Page 1 of 2
Attachment to
Ordinance # ________________________________
Exhibit "E"
Page 2 of 2
Attachment to
Ordinance # ________________________________
Exhibit "F"
Page 1 of 1
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

MEMORANDUM
TO:
FROM:
Brenda Martin, Director of Finance
DATE:
March 12, 2014
SUBJECT:
Public Hearing: Consideration of the Service and Assessment Plan and
Assessment Roll for Lewisville Castle Hills Public Improvement District
(PID) No. 5.
BACKGROUND
The creation of PID No. 5 began with petitions being filed on March 21, 2013 by BRECO Lands
CH, LLC requesting the establishment of PIDs No. 5, 6 and 7. At the March 25, 2013 City
Council meeting, the three petitions were accepted and a public hearing was called for
May 6, 2013 relating to the advisability of the proposed improvements. The improvements in all
three of the districts include the acquisition, construction and improvement of water, wastewater
or drainage facilities and the acquisition and construction of streets. On May 6, 2013, City
Council approved the resolution making certain findings in connection with the Districts and
authorizing creation of the Districts.
ANALYSIS
On March 3, 2014, City Council approved a resolution calling for a public hearing for this
meeting on March 17, 2014 to consider, approve and adopt the Service and Assessment Plan and
Assessment Roll and any official reports filed with the City in support of the Plan and Roll. As
required by statue, the Plan and Roll was filed with the City Secretary and made available for
public inspection. Notice of the public hearing was published as required.
The Service and Assessment Plan identifies the public improvements to be provided by the PID,
the cost of the public improvements, the indebtedness to be incurred for the public
improvements, and the manner of assessing the property in the PID for the costs of the public
improvements. The Assessment Roll identifies the assessment on each parcel, based on the
method of assessment identified in the Plan.
RECOMMENDATION
It is City staff’s recommendation that the City Council open and continue the public hearing until
April 7, 2014.
MEMORANDUM
TO:
FROM:
DATE:
March 12, 2014
SUBJECT:
Public Hearing: Consideration of the Service and Assessment Plan and
Assessment Roll for Lewisville Castle Hills Public Improvement District
(PID) No. 7.
BACKGROUND
The creation of PID No. 7 began with petitions being filed on March 21, 2013 by BRECO Lands
CH, LLC requesting the establishment of PIDs No. 5, 6 and 7. At the March 25, 2013 City
Council meeting, the three petitions were accepted and a public hearing was called for
May 6, 2013 relating to the advisability of the proposed improvements. The improvements in all
three of the districts include the acquisition, construction and improvement of water, wastewater
or drainage facilities and the acquisition and construction of streets. On May 6, 2013, City
Council approved the resolution making certain findings in connection with the Districts and
authorizing creation of the Districts.
ANALYSIS
On March 3, 2014, City Council approved a resolution calling for a public hearing for this
meeting on March 17, 2014 to consider, approve and adopt the Service and Assessment Plan and
Assessment Roll and any official reports filed with the City in support of the Plan and Roll. As
required by statue, the Plan and Roll was filed with the City Secretary and made available for
public inspection. Notice of the public hearing was published as required.
The Service and Assessment Plan identifies the public improvements to be provided by the PID,
the cost of the public improvements, the indebtedness to be incurred for the public
improvements, and the manner of assessing the property in the PID for the costs of the public
improvements. The Assessment Roll identifies the assessment on each parcel, based on the
method of assessment identified in the Plan.
RECOMMENDATION
It is City staff’s recommendation that the City Council open and continue the public hearing until
April 7, 2014.
MEMORANDUM
TO:
FROM:
DATE:
March 8, 2014
SUBJECT:
Acceptance of the Fiscal Year 2013 Comprehensive Annual Financial Report
(CAFR).
BACKGROUND
The independent annual audit of the City's financial statements is complete. The 2013
Comprehensive Annual Financial Report (CAFR) is provided in compliance with the City
Council's Finance Policy Statement 3.0 Section I. The report includes the auditor's opinion
statement regarding the financial statement presentation. Enclosed additionally is the Single
Audit Report on Federal Financial Assistance.
The auditor's opinion statement is on page 13-15 of the CAFR and states that in their opinion the
financial statements present fairly, in all material respects, the respective financial position of the
government activities, the business-type activities, the aggregate discretely presented component
units, each major fund, and the aggregate remaining fund information of the City as of
September 30, 2013 in conformity with accounting principles generally accepted in the United
States of America.
ANALYSIS
Highlights of the CAFR are as follows:

Overall, the City’s net position (assets less liabilities) increased by $5,883,965 to a total
net position of $583,277,351 at the close of the fiscal year ending September 30, 2013.
Of this amount, $69,232,104 is unrestricted net position and may be used to meet the
City’s ongoing obligations to citizens and creditors.

In the General Fund, total fund balance increased from the prior year balance by
$418,431 mainly due to an increase in sales tax collections netted with increased transfers
out to construction related projects. Revenues exceeded budget by $4,107,728 primarily
due to the aforementioned sales tax and property tax revenues being favorable to budget
by $2,907,142 and Licenses and Permits revenue by $747,586. Total expenditures in the
General Fund were below budget. The General Fund unrestricted, unassigned fund
balance decreased slightly from $30,615,982 to $30,571,006.
Acceptance of Comprehensive Annual Financial Report:
March 8, 2014
Page 2 of 2

The City's Water and Sewer Fund net position of $223,637,033 increased $5,000,548
over the prior year net position balance. The increase is primarily due to operating
revenues and dedicated infrastructure improvements continuing to remain well above
operating expenses.
RECOMMENDATION
It is City staff’s recommendation that the City Council accept the Fiscal Year 2013
Comprehensive Annual Financial Report (CAFR).
CITY OF LEWISVILLE, TEXAS
151 W. Church Street
Lewisville, Texas 75029
972-219-3400
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
for the period ending September 30, 2013
COMPREHENSIVE ANNUAL FINANCIAL REPORT
for the fiscal year ended September 30, 2013
Prepared by the
FINANCE DEPARTMENT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
TABLE OF CONTENTS
Exhibit/
Table
Page
INTRODUCTORY SECTION
Letter of Transmittal ........................................................................................................................1
GFOA Certificate of Achievement ..................................................................................................9
Organizational Chart ......................................................................................................................10
List of Principal Officers ...............................................................................................................11
Area Map .......................................................................................................................................12
FINANCIAL SECTION
Independent Auditor’s Report........................................................................................................13
Management’s Discussion and Analysis .......................................................................................16
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position ............................................................................1....................28
Statement of Activities .................................................................................2....................29
Fund Financial Statements:
Balance Sheet – Governmental Funds .........................................................3....................31
Reconciliation of the Governmental Funds Balance Sheet
to the Government-wide Statement of Net Position .................................4....................32
Statement of Revenues, Expenditures, and Changes in Fund
Balances – Governmental Funds ..............................................................5....................33
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the
Government-wide Statement of Activities................................................6....................34
Statement of Net Position – Proprietary Funds............................................7....................35
Reconciliation of the Enterprise Fund Statement of Net Position
to the Government-wide Statement of Net Position ................................8....................37
Statement of Revenues, Expenses, and Changes in Fund Net Position –
Proprietary Funds ......................................................................................9....................38
Reconciliation of the Statement of Revenues, Expenses and
Changes in Fund Net Position of the Enterprise Fund to the
Government-wide Statement of Activities..............................................10....................39
Statement of Cash Flows – Proprietary Funds ...........................................11....................40
Statement of Fiduciary Net Position – Fiduciary Funds ............................12....................42
Statement of Changes in Fiduciary Net Position .......................................13....................43
Statement of Net Position (Deficit) - Discretely Presented
Component Units ....................................................................................14....................44
Statement of Activities - Discretely Presented Component Units .............15....................45
Notes to the Financial Statements ............................................................................................46
i
TABLE OF CONTENTS
Exhibit/
Table
Page
Required Supplementary Information:
Schedule of Revenues, Expenditures, and Changes in Fund
Balances-Budget (GAAP Basis) and Actual – General Fund .................... A-1....................81
Notes to Required Supplementary Information ............................................ A-2....................82
Combining and Individual Fund Statements and Schedules:
Major Governmental Funds:
Balances-Budget (GAAP Basis) and Actual – Debt Service Fund.......B-1....................84
Non-Major Governmental Funds:
Combining Balance Sheet – Non-Major Governmental Funds ...............C-1....................87
Combining Statement of Revenues, Expenditures, and Changes
in Fund Balances – Non-Major Governmental Funds ..........................C-2....................89
Balances-Budget (GAAP Basis) and Actual - Hotel/Motel Tax
Special Revenue Fund...........................................................................C-3....................91
Balances-Budget (GAAP Basis) and Actual – Recreation
Activity Special Revenue Fund ............................................................C-4....................92
Balances-Budget (GAAP Basis) and Actual –
Grant Special Revenue Fund ................................................................C-5....................93
Public Improvement District Tax Special Revenue Fund.....................C-6....................94
Municipal Court Security Special Revenue Fund .................................C-7....................95
Municipal Court Technology Special Revenue Fund ...........................C-8....................96
Balances – Budget (GAAP Basis) and Actual – Police Asset
Forfeiture Special Revenue Fund..........................................................C-9....................97
Balances-Budget (GAAP Basis) and Actual – Fire and Police
Training Special Revenue Fund ..........................................................C-10....................98
Balances-Budget (GAAP Basis) and Actual – Law Enforcement
Officer Standards and Education Special Revenue Fund ...................C-11....................99
ii
TABLE OF CONTENTS
Exhibit/
Table
Page
Balances-Budget (GAAP Basis) and Actual – Donations Special
Revenue Fund .....................................................................................C-12..................100
Balances-Budget (GAAP Basis) and Actual – Police Federal
Forfeiture Special Revenue Fund.......................................................C-13..................101
Balances-Budget (GAAP Basis) and Actual – Juvenile Case
Manager Special Revenue Fund .........................................................C-14..................102
Balances-Budget (GAAP Basis) and Actual – PEG Programming
Special Revenue Fund.........................................................................C-15..................103
Balances-Budget (GAAP Basis) and Actual – Crime Control
And Prevention District Fund .............................................................C-16..................104
Balances-Budget (GAAP Basis) and Actual – Fire Control,
Prevention, and Emergency Medical Services District Fund .............C-17..................105
Internal Service Funds:
Combining Statement of Net Position –
Internal Service Funds ......................................................................... D-1..................107
Combining Statement of Revenues, Expenses, and Changes in
Fund Net Position –Internal Service Funds ......................................... D-2..................108
Combining Statement of Cash Flows –Internal Service Funds .............. D-3..................109
Discretely Presented Component Units:
Balance Sheet- Lewisville Parks and Library Development CorporationE-1 .................110
Reconciliation of Fund Balance to Net Position – Lewisville
Parks and Library Development Corporation ....................................... E-2..................111
Statement of Revenues, Expenditures and Changes in Fund Balance –
Lewisville Parks and Library Development Corporation ..................... E-3..................112
Reconciliation of Changes in Fund Balance to the Change
in Net Position in the Statement of Activities – Lewisville Parks
and Library Development Corporation ................................................. E-4..................113
iii
TABLE OF CONTENTS
Exhibit/
Table
Page
Balance Sheet- Tax Increment Reinvestment Zone (Old Town) ............. E-5..................114
Reconciliation of Fund Balance to Net Position - Tax Increment
Reinvestment Zone (Old Town) ........................................................... E-6..................115
Statement of Revenues, Expenditures and Changes in Fund Balance Tax Increment Reinvestment Zone (Old Town) ................................... E-7..................116
Reconciliation of Changes in Fund Balance to the Change in Net
Position in the Statement of Activities – Tax Increment
Reinvestment Zone (Old Town) ........................................................... E-8..................117
STATISTICAL SECTION (UNAUDITED)
Contents of the Statistical Section ...............................................................................................118
Net Position by Component .................................................................... Table 1..................119
Changes in Net Position .......................................................................... Table 2..................121
Fund Balances, Governmental Funds ..................................................... Table 3..................125
Changes in Fund Balances, Governmental Funds .................................. Table 4..................127
Assessed Value and Estimated Actual Value of Taxable Property ........ Table 5..................129
Direct and Overlapping Property Tax Rates .......................................... Table 6..................130
Principal Property Taxpayers .................................................................. Table 7..................131
Property Tax Levies and Collections ...................................................... Table 8..................132
Gross Sales by Category ......................................................................... Table 9..................133
Direct and Overlapping Sales Tax Rates .............................................. Table 10..................135
Principal Sales Tax Payers .................................................................... Table 11..................136
Combined Schedule of Bonds ............................................................... Table 12..................138
Ratio of Outstanding Debt by Type ...................................................... Table 13..................140
Ratio of Net General Bonded Debt Outstanding .................................. Table 14..................141
Direct and Overlapping Governmental Activities Debt ....................... Table 15..................142
Pledged-Revenue Coverage .................................................................. Table 16..................143
Demographic and Economic Statistics ................................................. Table 17..................144
Principal Employers .............................................................................. Table 18..................145
Full-Time Equivalent City Government Employees by
Function/Program .............................................................................. Table 19..................146
Operating Indicators by Function/Program .......................................... Table 20..................147
Capital Asset Statistics by Function/Program....................................... Table 21..................149
iv
INTRODUCTORY
SECTION
March 14, 2014
To the Honorable Mayor,
Members of the City Council,
and Citizens of the City of Lewisville, Texas:
The Comprehensive Annual Financial Report (CAFR) of the City of Lewisville, Texas, for the
year ended September 30, 2013, is submitted herewith. Responsibility for both the accuracy of
the data and the completeness and fairness of the presentation, including all disclosures, rests
with the City. To the best of our knowledge and belief, the enclosed data is accurate in all
material respects and is reported in a manner designed to present fairly the financial position and
results of operations of the City, on a Government-wide and Fund basis. All disclosures
necessary to enable the reader to gain an understanding of the City’s financial activities have
been included.
To provide a reasonable basis for making these representations, management of the City has
established a comprehensive internal control framework that is designed both to protect the
City’s assets from loss, theft, or misuse and to compile sufficient reliable information for the
preparation of the City’s financial statements in conformity with accounting principles generally
accepted in the United States of America. Because the cost of internal controls should not
outweigh their benefits, the City’s comprehensive framework of internal controls has been
designed to provide reasonable rather than absolute assurance that the financial statements will
be free from material misstatement. We believe the data, as presented, is accurate in all material
aspects, that it is presented in a manner to fairly represent the financial position and results of
operations of the City and that all disclosures necessary to enable the reader to gain the
maximum understanding of the City’s financial affairs have been included. The CAFR for the
year ended September 30, 2013, is prepared in accordance with generally accepted accounting
principles (GAAP) and in conformance with standards of financial reporting established by the
Governmental Accounting Standards Board (GASB) using guidelines recommended by the
Government Finance Officers Association of the United States and Canada (GFOA).
Management’s discussion and analysis (MD&A) immediately follows the independent auditor’s
report and provides a narrative introduction, overview and analysis of the basic financial
statements. MD&A complements this letter of transmittal and should be read in conjunction
with it.
City of Lewisville ● Finance Department
151 W. Church Street ● Lewisville, TX 75057
972.219.3420 ● [F] 972.219.3414
www.cityoflewisville.com
1
GENERAL INFORMATION – CITY OF LEWISVILLE
The City of Lewisville is geographically located north of the hub of the ten-county metropolitan
area containing Dallas and Fort Worth, Texas. The City is characterized as a predominantly
suburban residential community situated in the growth corridor linking the Dallas/Fort Worth
International Airport (Tarrant County) through Lewisville (Denton County) to cities in east
Collin County. Lewisville shares the metroplex economy based primarily on commerce,
tourism, manufacturing, and finance.
The City of Lewisville was incorporated in 1925. The current charter was adopted in 1963 and
amended as recently as September 2004. Lewisville is a home-rule city and operates under the
Council-Manager form of government. The City Council is comprised of the Mayor and five
members and is responsible for enacting ordinances, resolutions and regulations governing the
City. In addition, the City Council appoints the members of various boards and commissions,
the City Manager, City Attorney, City Judge, and City Secretary. As chief administrative
officer, the City Manager is responsible for implementing Council policies, overseeing municipal
operations, and appointing and supervising the various department directors.
The City provides the full range of municipal services as authorized by statute or charter. This
includes public safety (police and fire), streets, water and sewer utilities, sanitation, health and
social services, parks and leisure services, public improvements, community development with
planning and zoning, tourism and general administrative services.
In addition, the City of Lewisville has organizations called component units. Component units
are legally separate organizations for which the elected officials of the City of Lewisville are
financially accountable. At September 30, 2013, the component units for the City of Lewisville
are:
 Lewisville Housing Finance Corporation
 Lewisville Industrial Development Authority, Inc.
 Lewisville Parks and Library Development Corporation
 Tax Increment Reinvestment Zone Number 1, City of Lewisville, Texas
(also known as Old Town TIF)
 Tax Increment Reinvestment Zone Number 2, City of Lewisville, Texas
 City of Lewisville Health Benefit Trust
 Lewisville Local Government Corporation
 Lewisville Crime Control and Prevention District
 Lewisville Fire Control, Prevention, and Medical Services District
ECONOMIC CONDITIONS AND OUTLOOK
The City of Lewisville continues to experience positive annual population growth. Since 2000,
Lewisville’s population has increased 27.9% from 77,737 to an estimated 99,453 in 2013.
Estimates are for residential population to be approximately 111,000 at the time of build-out
around 2030.
2
With Lewisville’s continued pro-business policies, the City maintains its economic prosperity.
Highlights include:

Majestic Airport Center is a 160-acre, master-planned business park that will total more
than 3 million square feet of Class A warehouse and distribution facilities in seven
buildings. Phase I is complete, which includes DFW’s first 1 million square foot
speculative industrial building. Kellogg relocated their southwest regional distribution
facility to Majestic Airport Center, occupying 1 million square feet and creating 300 new
jobs. Jafra Cosmetics and Cabin Innovations currently occupy the development, taking
advantage of the Foreign Trade Zones and Triple Freeport exemption in place.
Hagemeyer North America Inc, Sonexus Health, and Ranger Air Aviation are the newest
additions to the Majestic Airport Center. Planning is underway for a fifth building on
approximately 60 acres and a new 1 million square foot warehouse/flex space facility is
currently under construction.

Valley Parkway Distribution Center, a 500,000 square foot warehouse and distribution
facility, located at the corner of Valley Parkway and Ace Lane was completed in 2013.

At Lewisville West shopping center, Birmingham Management began their five million
dollar revitalization of the center.

Prime Controls expanded their operations to a new 85,000 square foot facility in Waters
Ridge, moving 150 employees.

A#1 Air located their new headquarters in the 64,000 square foot facility formerly known
as McKesson.

IPeople expanded to a 15,000 square foot building, growing to 75 employees.

The City of Lewisville continues to revitalize Old Town Lewisville. The Old Town Tax
Increment Reinvestment Zone was created in December 2001, with participation between
the City and Denton County. Tax increment revenues from the Zone will be used to
finance infrastructure improvements and public facilities to stimulate revitalization of Old
Town. Projects to date include parking improvements, wayfinding, infrastructure needs
studies, sidewalk enhancements, beautification projects, and the Medical Center of
Lewisville Grand Theater (MCL Grand Theater). Uptown Village, a new townhome
project, broke ground in Old Town in 2013. The project will have 68 new townhome
units and an amenity center with price ranges from $160,000 to $180,000.
New mixed use projects, including residential units, are anticipated to be constructed in
the zone in the next few years. The Zone will expire in 2028. Additionally, the below
items are worth noting:
o Immediately east of the MCL Grand Theater and across from City Hall, a public
park is under construction. The park space will include a great lawn for events,
projection water wall, pop-up water fountains, playground, and a history walk.
The project is estimated to be complete in July 2014.
3
o Streetscape improvements along the Main and Mill Streets corridors were
approved for regional grant funding. This project will create pedestrian and bike
amenities to encourage walking and biking to the DCTA rail station in Old Town
Lewisville. The design contract has been awarded and construction is anticipated
to begin in 8 months.
MAJOR INITIATIVES
Tax Increment Reinvestment Zone Number 2—This zone was created in October 2008, with
participation between the City and Denton County. Tax increment revenues from the Zone will
be used to finance infrastructure improvements for a 427 acre mixed-use development. The
development, also known as Hebron 121 Station, is at the northeast corner of I-35E and SH-121
Tollway. The project will consist of urban residential, retail, recreation, and entertainment uses.
The Denton County Transit Authority (DCTA) A-Train Station was completed in June 2011.
The first phase of Hebron 121 Station, a multifamily project, has 150 fully leased units. An
additional 452 units and a large amenity center are under construction. The City has started the
design for a bridge over Timber Creek to connect the project to the I-35E frontage road. The
Zone will expire in 2038.
Metropolitan Transit System— DCTA has worked since its formation in 2001 to connect
Lewisville to the DFW commuter rail network. Lewisville was one of three cities in which
voters approved funding the DCTA through a half-cent sales tax in September of 2003. The
DCTA network, called the A-train, has been operational since June of 2011. Lewisville has
completed master plans for the areas surrounding each of these three stations. The most notable
plan, the Lake Lewisville Master Plan, was recognized by the Urban Land Institute in 2009, due
in large part to its unique combination of lake frontage, commuter rail, and adjacency to an
interstate highway. Wynne Jackson has completed a consolidated plan for the property and has
exercised their right to be retained as the master developer for the six month period ending April
2014.
Other Major Roadway Projects—Interstate Highway 35E is scheduled to be widened from 10
to 16 lanes between I-635 and US Highway 380. The expansion will include free lanes,
managed/tolled lanes, and additional new frontage lanes. The State of Texas continues to
identify funding and has begun purchasing right-of-way for the expansion. The City is
completing a two year project for a Corridor Redevelopment Plan to guide public improvements,
private developments, business retention, and new business recruitment along the corridor. An
extension of the plan, the I-35E Branding Plan, was developed to create aesthetic treatments and
non-vehicular travel options at highly visible overpasses and underpasses.
Brownfield Development— Lewisville has implemented a Brownfield Assessment Program,
funded by a $400,000 grant from the U.S. Environmental Protection Agency, to help plan for and
initiate redevelopment. Revitalizing older areas with existing hazardous or petroleum related
uses typically involves overcoming environmental challenges. The program is designed to
address these issues, and has been integrated with the redevelopment planning initiatives in Old
Town and along the I-35E corridor.
4
To date, eleven Phase I and ten Phase II environmental site assessments have been funded
through the grant in addition to cleanup planning for three sites. Investigation efforts have
facilitated the redevelopment of the Old Orchard Shopping Center and accelerated evaluation of
the K & W Auto Supply property, which was found to have leaking underground petroleum
storage tanks. The program has also funded evaluation of the Lewisville Shopping Center and
the Feed Mill, both of which are considered catalysts for the revitalization of Old Town. The
grant for this program expires in early 2014, and the city has applied for a subsequent grant to
continue Brownfield assessments.
Residential Growth— During the year, 190 building permits were issued for single-family
residences and 36 for multi-family buildings totaling 936 units. Of particular interest:
o Aura in Castle Hills provides for 316 apartment units at the northeast corner of State
Highway 121 and FM 544. The Castle Hills Golf Course Villas propose 44 single family
units.
o Settler’s Village Phase II is a development by Ashton Woods Homes and will consist of
over 230 upscale two and three story townhomes. The development is located south of
FM 3040 between Rockbrook Drive and MacArthur Boulevard.
o Brookside is a development located on the west side of SH 121 along Southwest
Parkway. When completed, Brookside will have 40 new single family detached homes.
o The final units of the Brownstones at Vista Ridge, a 105 unit townhome development, are
being completed along Rockbrook Drive.
o Construction has begun on the Manors at Vista Ridge for a 75 unit townhome
development on the southeast corner of MacArthur Boulevard and Vista Ridge Mall
Drive.
o The Preserve at Vista Ridge broke ground recently on a 27 unit townhome development
on Old Denton Road near Highland Drive.
FINANCIAL INFORMATION
Financial Policies—The City of Lewisville has adopted (with City Council approval) formal
written financial policies and administrative directives. These include, among others, policies
and directives for Audit, Revenue Management, Expenditure Control, Financial Reserve/Fund
Balance Levels, Debt Management, Post Issuance Compliance for Tax-Exempt Obligations,
Investments, and Budget Transfers. Policies are reviewed and amended regularly.
Accounting Procedures and Budgetary Controls—The City’s accounting records for general
governmental funds are maintained on a modified accrual basis, with revenues being recorded
when available and measurable, and expenditures being recorded when the services or goods are
received and the liabilities are incurred. Accounting records for the City’s water and sewer
utility and other proprietary activities are maintained on the accrual basis.
5
The legal level of budgetary control is at the fund level. Budgetary control is maintained at the
fund level with encumbrances entered at the time a purchase requisition is approved. Open
encumbrances are recorded as assignments of fund balance as of September 30 of each year, and
the subsequent year’s budget is increased in December or January of each year to reflect these
carried-forward encumbrances. Unspent and unencumbered appropriations lapse at the end of
the fiscal year.
The budgetary process begins each year with the preparation of both current and proposed year
revenue and expenditure estimates by the City’s financial management staff with input from each
City department. Budgets are reviewed by the City Manager who then makes final decisions and
submits a recommended budget to the City Council. The proposed budget is reviewed
extensively by the City Council, a process that includes a Charter-mandated public hearing, in
addition to a work session, which is open to the public. The City Charter requires adoption of
the City budget prior to the beginning of the fiscal year.
While the budget is developed and controlled at the departmental level, appropriations are made
at the fund level. An ordinance establishes the budget for operating expenditures, debt service
payments and use of reserves, while a separate ordinance establishes the property tax rate.
As part of each year’s budget development process, departments are required to update revenue
and expenditure estimates for the current fiscal year. These estimates are reviewed by the
Budget and Research Director, the City Manager, and the City Council concurrent with review of
the proposed budget. This re-estimated budget may require a supplemental appropriation and, if
so, such supplemental appropriation is approved by ordinance adopted by the City Council prior
to the end of the current fiscal year.
During the course of the fiscal year, expenditure controls are maintained by each department
director with overall review exercised by the Budget and Research Director and the City
Manager. Monthly revenue and departmental expenditure reports are generated by an automated
management accounting system and provide expenditure totals and encumbrances at the lineitem level for the most recently completed month, as well as a year-to-date total, and an actual
versus planned rate of expenditure. Major expenditure requests are reviewed by the Budget and
Research Director prior to the encumbrance of funds.
Constant review of revenue and expenditure trends is maintained with specific responsibility
assigned to the Budget and Research Director. Recommendations for corrective action are made
to the City Manager (and to the City Council, if appropriate) as needed to ensure the integrity of
the adopted budget.
Tax Rates—All eligible property within the City is subject to assessment, levy, and collection
by the City of a continuing, direct ad valorem tax sufficient to provide for the payment of
principal and interest on outstanding bonds within the limits prescribed by law, and the payment
of operation and maintenance costs as approved by the City Council. Under State law and
provisions of the City Charter, the City is limited to a maximum tax rate of $2.50 per $100
assessed valuation. As shown below, the tax rate adopted by the City Council has historically
been substantially lower than the maximum provided by law.
6
The allocation of the property tax levy by purpose (General Fund operations and Debt Service)
for fiscal year 2013-14 and the preceding five fiscal years is reflected in the following table:
Purpose
2013-14
2012-13
2011-12
2010-11
2009-10
2008-09
General Fund
Debt Service Fund
0.32289
0.11732
0.32289
0.11732
0.32289
0.11732
0.32289
0.11732
0.32156
0.11865
0.32156
0.11865
Total Tax Rate
0.44021
0.44021
0.44021
0.44021
0.44021
0.44021
Tax Appraisal/Collection Responsibilities—Under Texas law enacted in 1979 and subsequent
revisions to the State Property Tax Code, the appraised value of taxable property in Lewisville is
established by the Central Appraisal District of the county in which the property exists. The City
of Lewisville’s jurisdiction is predominately in Denton County, but also extends into Dallas
County. Therefore, both the Denton Central Appraisal District and the Dallas Central Appraisal
District provide values based upon county lines. The City of Lewisville and other taxing
jurisdictions in the counties provide a pro rata share of the budgeted expenditures incurred by the
respective appraisal district based upon individual levy. In fiscal year 2012-13, the City’s
payments to the districts for appraisal services were $237,586, a decrease of $1,615, or 0.7%,
from the amount paid by the City in 2011-12. Since October 1997, the City has contracted with
Denton County for tax collection services. The 2012-13 cost was $19,972.
Long-Term Financial Planning—The City prepares a series of multi-year financial plans and
forecasts that enable the City to reasonably predict future impacts on the government’s financial
position. For its two largest funds, the General Fund and the Water and Sewer Utility Fund, a
five-year financial plan is prepared in addition to a five-year street and drainage program and a
five-year water and sewer capital improvement project plan. In the age of rapid technological
advances, a five-year strategic technology plan is prepared as well.
Debt Administration—Two ratios traditionally used to analyze the debt structure of
municipalities are presented below. Revenue debt has been excluded since service and user
charges made by utility system customers are used to retire such debt and no ad valorem tax
proceeds are used for utility revenue bond debt service.
Outstanding General Obligation and Certificate of Obligation Debt at
9-30-13 (Net of Debt Service)
Estimated Population
General Debt per Capita
Net General Debt per Assessed Value
$101,852,114
99,453
$1,024
1.57%
The City’s underlying bond ratings at September 30, 2013 were as follows:
Standard & Poor’s
Fitch Ratings
General Obligation
AAA
AAA
7
Revenue
AAA
AAA
OTHER INFORMATION
Independent Audit—According to Section 34 of the City Charter of the City of Lewisville, an
annual independent audit is required to be made of the financial records of the City by a Public
Accountant or Certified Public Accountant selected by the City Council. The City of Lewisville
has engaged the firm of Weaver, L.L.P. and the opinion is included in this report.
It should be noted that the auditors included all funds in their audit, performed their audit in
accordance with generally accepted auditing standards, and stated that, in their opinion, the
statements herein present fairly, in all material respects, the financial position of the City at
September 30, 2013, and the changes in financial position and cash flows, where applicable, for
the year then ended in conformity with generally accepted accounting principles.
Certificate of Achievement—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 Lewisville for its Comprehensive Annual Financial Report for the Fiscal
Year ended September 30, 2012. The Certificate of Achievement is a prestigious national award
recognizing conformance with the highest standards for preparation of state and local
government financial reports.
In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily
readable and efficiently organized Comprehensive Annual Financial Report whose contents
conform to program standards. Such reports must satisfy both generally accepted accounting
principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. The City of Lewisville has
received a Certificate of Achievement for the last 24 consecutive years (fiscal years ended 19892012). We believe our current report continues to conform to the Certificate of Achievement
Program requirements, and we are submitting it to the GFOA to determine its eligibility for
another certificate.
Acknowledgements—The preparation of this report on a timely basis could not be accomplished
without the efficient and dedicated services of the entire staff of the Finance Department.
Special appreciation is given to these staff members whose effort was instrumental in the
publication of this comprehensive report.
Respectfully submitted,
Claude E. King
City Manager
Brenda Martin, CPA
Director of Finance
8
9
CITY OF LEWISVILLE, TEXAS – ORGANIZATIONAL CHART
Citizens / Voters
Mayor / Council
Advisory Boards
Municipal Judge
Municipal Court
Quasi-Judicial Boards
City Secretary
City Manager
Police
City Attorney
Fire
Economic Dev / Planning
Assistant City Manager
(Development Services)
Assistant City Manager
(Administrative Services)
Public Services
Budget & Research
Community Development
Human Resources
Parks & Leisure Services
Finance
Information Technology
Community Relations /
Tourism
10
CITY OF LEWISVILLE – PRINCIPAL OFFICERS
– Elected Officials –
Mayor ........................................................................................................................................................ Dean Ueckert
Mayor Pro Tem......................................................................................................................................... Leroy Vaughn
Deputy Mayor Pro Tem .................................................................................................................................TJ Gilmore
Councilman............................................................................................................................................... Rudy Durham
Councilman............................................................................................................................................... Neil Ferguson
Councilman.................................................................................................................................................Greg Tierney
– Appointed Officials –
City Manager .......................................................................................................................................... Claude E. King
City Secretary .............................................................................................................................................. Julie Heinze
City Attorney ........................................................................................................................................... Lizbeth Plaster
Municipal Judge ................................................................................................................................... Brian S. Holman
– Assistant City Managers –
Development Services ....................................................................................................................... Steven L. Bacchus
Administrative Services ............................................................................................................................ Donna Barron
– Department Directors –
Budget and Research ............................................................................................................................. Gina Thompson
Community Development ............................................................................................................................... Eric Ferris
Community Relations and Tourism ............................................................................................................James Kunke
Economic Development .......................................................................................................................... Nika Reinecke
Finance .....................................................................................................................................................Brenda Martin
Fire...................................................................................................................................................................Tim Tittle
Human Resources .................................................................................................................................... Melinda Galler
Information Technology Services.................................................................................................................... Chris Lee
Parks and Recreation .......................................................................................................................... Robert Monaghan
Police ..................................................................................................................................................... Russell Kerbow
Public Services .....................................................................................................................................Carole Bassinger
11
AREA MAP
12
FINANCIAL
SECTION
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor,
City Council, and City Manager
City of Lewisville, TX
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, the aggregate discretely presented component units, each major fund,
and the aggregate remaining fund information of the City of Lewisville (the City), as of and for
the year ended September 30, 2013, and the related notes to the financial statements, which
collectively comprise the City’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial
statements in accordance with accounting principles generally accepted in the United States of
America; this includes the design, implementation, and maintenance of internal control relevant
to the preparation and fair presentation of financial statements that are free from material
misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity’s preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
entity’s internal control. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinions.
13
City of Lewisville, Texas
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business-type activities, the
aggregate discretely presented component units, each major fund, and the aggregate remaining
fund information of the City, as of September 30, 2013, and the respective changes in financial
position, and, where applicable, cash flows thereof for the year then ended in accordance with
accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis and budgetary comparison information on pages 16-27
and 81-82 be presented to supplement the basic financial statements. Such information,
although not a part of the basic financial statements, is required by the Governmental
Accounting Standards Board, who considers it to be an essential part of financial reporting for
placing the basic financial statements in an appropriate operational, economic, or historical
context. We have applied certain limited procedures to the required supplementary information
in accordance with auditing standards generally accepted in the United States of America,
which consisted of inquiries of management about the methods of preparing the information and
comparing the information for consistency with management’s responses to our inquiries, the
basic financial statements, and other knowledge we obtained during our audit of the basic
financial statements. We do not express an opinion or provide any assurance on the information
because the limited procedures do not provide us with sufficient evidence to express an opinion
or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City’s basic financial statements. The introductory section, combining
and individual fund financial statements and schedules, and statistical section, are presented for
purposes of additional analysis and are not a required part of the basic financial statements.
The combining and individual 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 fund financial statements and schedules are fairly stated in all material
respects in relation to the basic financial statements as a whole.
14
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
March 12, 2014, on our consideration of the City’s internal control over financial reporting and
on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements and other matters. The purpose of that report is to describe the scope of our testing
of internal control over financial reporting and compliance and the results of that testing, and not
to provide an opinion on internal control over financial reporting or on compliance. That report is
an integral part of an audit performed in accordance with Government Auditing Standards in
considering the City’s internal control over financial reporting and compliance.
WEAVER AND TIDWELL, L.L.P.
Dallas, Texas
March 12, 2014
15
MANAGEMENT’S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2013
This discussion and analysis of the City of Lewisville’s financial performance provides an
overview of the City’s financial activities for the fiscal year ended September 30, 2013. Please
read it in conjunction with the accompanying transmittal letter and the basic financial statements.
FINANCIAL HIGHLIGHTS

The assets of the City of Lewisville exceeded its liabilities at the close of the fiscal year
ending September 30, 2013 by $583,277,351 (net position). Of this amount, $69,232,104
(unrestricted net position) may be used to meet the government’s ongoing obligations to
citizens and creditors.

The City of Lewisville’s total net position increased by $5,883,965 for the year ended
September 30, 2013.

As of September 30, 2013, the City of Lewisville’s governmental funds reported
combined ending fund balances of $90,999,881, an increase of $12,164,156 in
comparison with the prior fiscal year.

At the end of the current fiscal year, unassigned fund balance for the general fund was
$30,571,006 or approximately 51% percent of total general fund expenditures.

The City’s total outstanding bonds increased by $5,325,000 during the current fiscal year.
In 2013, the City issued $12,455,000 of General Obligation Bonds and $5,205,000 of
Waterworks and Sewer System Revenue bonds. The increase in additional debt was
partially offset by amortization payments on existing debt.
OVERVIEW OF THE FINANCIAL STATEMENTS
The discussion and analysis is intended to serve as an introduction to the City of Lewisville’s
basic financial statements. The City of Lewisville’s basic financial statements are comprised of
three components: 1) government-wide financial statements, 2) fund financial statements, and 3)
notes to the financial statements. This report also contains other supplemental information in
addition to the basic financial statements themselves.
16
SEPTEMBER 30, 2013
Government-wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad
overview of the City of Lewisville’s finances, in a manner similar to private-sector business. The
statement of net position presents information on all of the City of Lewisville’s assets and
liabilities, 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 of Lewisville is improving or deteriorating. The statement of net position combines and
consolidates governmental funds current financial resources (short-term spendable resources)
with capital assets and long-term obligations. Other non-financial factors should also be taken
into consideration, such as changes in the City’s property tax base and the condition of the City’s
infrastructure (i.e. roads, bridges, drainage improvements, alleys, etc.), to assess the overall
health or financial condition of the City.
The statement of activities presents information showing how the City’s net position changed
during the most recent fiscal year. All of the current year revenues and expenses are taken into
account regardless of when cash is received or paid. Thus, revenues and expenses are reported in
this statement for some items that will only result in cash flows in future fiscal periods; for
example, uncollected taxes and earned but not used vacation leave. Both the statement of net
assets and the statement of activities are prepared utilizing the accrual basis of accounting.
In the Statement of Net Position and the Statement of Activities, the City is divided into three
kinds of activities:

Governmental activities – Most of the City’s basic services are reported here, including the
police, fire, library, community development, public services, information technology
services, parks and leisure services, municipal court, tourism, and general administration.
Property taxes, sales taxes, and franchise fees finance most of these activities.

Business-type activities – The City charges a fee to customers to help it cover all or most of
the cost of certain services it provides. The City’s water and sewer system is reported here.

Component units – The City includes nine separate legal entities in its report –Lewisville
Housing Finance Corporation, Lewisville Industrial Development Authority, Inc., Lewisville
Parks and Library Development Corporation, Tax Increment Reinvestment Zone Number 1
(Lewisville Old Town), Tax Increment Reinvestment Zone Number 2, Lewisville Local
Government Corporation, Health Benefit Trust, Lewisville Crime Control and Prevention
District, and Lewisville Fire Control, Prevention, and Emergency Medical Services District.
Although legally separate, these component units are important because the City is
financially accountable for them.
17
SEPTEMBER 30, 2013
Reporting the City’s Most Significant Funds
Fund Financial Statements
The fund financial statements provide detailed information about the most significant funds – not
the City as a whole. Some funds are required to be established by state law and by bond
covenants. However, the City Council establishes many other funds to help it control and
manage money for particular purposes or to show that it is meeting legal responsibilities for
using certain taxes, grants, or other money. The City’s two types of funds – Governmental and
Proprietary – utilize different accounting approaches.
Governmental funds – The majority of the City’s basic services are reported in governmental
funds, which focus on how money flows into and out of those funds and the balances left at yearend that are available for spending. These funds are reported using an accounting method
identified as the modified accrual basis of accounting, which measures cash and all other
financial assets that can be readily converted to cash. The governmental fund statements provide
a detailed short-term view of the City’s general government operations and the basic services it
provides. Governmental fund information helps you determine whether there are more or fewer
financial resources that can be spent in the near future to finance the City’s programs. By
comparing information presented for governmental funds with similar information presented for
governmental activities in the government-wide financial statements, readers may better
understand the long-term impact of the government’s near-term financing decisions. The
relationships or differences between governmental activities (reported in the Statement of Net
Position and the Statement of Activities) and governmental funds are detailed in a reconciliation
following the fund financial statements.
The City of Lewisville maintains twenty-one individual governmental funds. Information is
presented separately in the governmental funds balance sheet and in the governmental funds
statement of revenues, expenditures, and changes in fund balances for the General Fund, Debt
Service Fund, and the General Capital Projects Fund, all of which are considered to be major
funds. Data from the other eighteen 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 charges customers for the services it provides, whether to outside
customers or to other units within the City. These services are generally reported in proprietary
funds. Proprietary funds are reported in the same way that all activities are reported in the
Statement of Net Position and the Statement of Activities. In fact, the City’s enterprise funds (a
component of proprietary funds) are identical to the business-type activities that are reported in
the government-wide statements but provide more detail and additional information, such as cash
flows, for proprietary funds. The internal service funds (the other component of proprietary
funds) are utilized to report activities that provide supplies and services for the City’s other
programs and activities. Because these services benefit both governmental as well as business
type functions, they have been included in both the governmental and business-type activities in
the government-wide financial statements.
18
SEPTEMBER 30, 2013
The City of Lewisville maintains one enterprise fund to account for water and sewer services
provided to the City’s retail and wholesale customers. All activities associated with providing
such services are accounted for in this fund, including administration, operation, maintenance,
debt service, capital improvements, billing and collection. The City’s intent is that costs of
providing the services to the general public on a continuing basis are financed through user
charges in a manner similar to a private business enterprise.
The City of Lewisville maintains three internal service funds to account for funds accumulated to
self-insure for health, liability, property and casualty losses, worker compensation claims, life
insurance, long-term disability, vehicle and equipment replacement and fleet maintenance.
Individual fund data for each of these non-major business-type funds is provided in the form of
combining statements elsewhere in this report.
The City as Trustee
Reporting the City’s Fiduciary Responsibilities
Fiduciary funds are used to account for resources held for the benefit of parties outside the
government. The City’s fiduciary activities are reported in separate Statements of Fiduciary Net
Assets and Changes in Fiduciary Net Assets. The activities of these funds are excluded from the
City’s other financial statements because the City cannot use these assets to finance its
operations. The City is responsible for ensuring that the assets reported in these funds are used
for its intended purpose.
Other Information
In addition to the basic financial statements and accompanying notes, this report presents certain
required supplementary information and a statistical section that is intended to assist users in
assessing the economic condition of the City.
THE CITY AS A WHOLE – Government-Wide Financial Analysis
The City’s combined net position was $583,277,351 as of September 30, 2013. Analyzing the net
position and net expenses of governmental and business-type activities separately, the business
type activities net position is $223,682,558. This analysis focuses on the net position (Table 1)
and changes in general revenues (Table 2) and significant expenses of the City’s governmental
and business-type activities.
By far the largest portion of the City’s net position (86.0 percent) reflects its investment in
capital assets (i.e., land, buildings, machinery, equipment, and infrastructure) less any related
debt used to acquire those assets that is still outstanding. The City uses these capital assets to
provide services to citizens; consequently, these assets are not available for future spending.
Although the City’s investment in its capital assets is reported net of related debt, it should be
noted that the resources needed to repay this debt must be provided from other sources, since the
capital assets themselves cannot be used to liquidate these liabilities.
19
SEPTEMBER 30, 2013
Table 1: Net Position
Governmental Activities
2013
2012
Current and other assets
Capital assets
Business-Type Activities
2013
2012
$ 187,904,483
333,359,679
$ 156,769,991
336,486,504
Total assets
521,264,162
493,256,495
280,251,517
Noncurrent liabilities
Other liabilities
115,183,853
46,485,516
87,467,367
47,078,779
Total liabilities
161,669,369
Net position:
Net investment in capital assets
Restricted
Unestricted
Total net position
$
$
72,115,442
197,534,583
$
2012
267,090,258
534,425,421
$ 228,885,433
534,021,087
269,650,025
801,515,679
762,906,520
52,571,018
3,997,941
47,383,217
3,583,771
167,754,871
50,483,457
134,850,584
50,662,550
134,546,146
56,568,959
50,966,988
218,238,328
185,513,134
314,990,028
10,755,866
33,848,899
298,329,672
1,012,020
59,368,657
186,611,050
1,688,303
35,383,205
181,437,600
1,975,308
35,270,129
501,601,078
12,444,169
69,232,104
479,767,272
2,987,328
94,638,786
$ 359,594,793
$ 358,710,349
223,682,558
$ 218,683,037
583,277,351
$ 577,393,386
$
79,185,775
201,065,742
Total
2013
$
The City’s general revenues increased when compared to the prior year by 10.6% or $6,858,058.
The primary reasons for this increase were sales tax and property tax revenues. Sales tax
revenue increased $4,784,189 (21.1%) from the prior year. Of this increase, $2,946,717 (61.6%)
can be attributed to the voter approved Lewisville Crime Control and Prevention District and the
Lewisville Fire Control, Prevention, and Emergency Medical Services District. Both districts
began collecting one-eighth cent sales tax in April of 2012. Fiscal year 2013 was the first full
year of tax collections for both districts. Assessed valuation of properties in the City increased by
$199.7 million or 3.2% as compared to the prior year while the tax rate remained the same as
2012 at $0.44021 per $100 assessed valuation. Intergovernmental revenues in 2013 represent
interest payments from the City’s component unit for a long term note receivable. The changes in
the City’s general revenues are as follows (Table 2):
Table 2: General Revenues and Transfers
2013
Increase
(decrease)
2012
Property taxes
Sales taxes
Hotel/motel taxes
Other taxes
Franchise taxes
Investment earnings
Intergovernmental
Gain on disposal of assets
Miscellaneous
Transfers
$
29,734,268
27,451,139
2,065,363
1,200,502
5,814,797
210,934
624,125
3,477
817,291
3,735,515
$
28,968,709
22,666,950
1,960,910
1,011,328
5,436,197
365,045
8,525
396,641
3,985,048
$
765,559
4,784,189
104,453
189,174
378,600
(154,111)
624,125
(5,048)
420,650
(249,533)
Total general revenues
$
71,657,411
$
64,799,353
$
6,858,058
20
SEPTEMBER 30, 2013
Governmental activities increased the City’s net position by $884,444. The key elements of this
increase are as follows:
Table 3: Changes in Net Position
2013
2012
Revenues:
Program revenues:
Charges for services
Operating grants and contributions
Capital grants and contributions
General revenues:
Property taxes
Other taxes
Other
$
13,124,152
2,415,909
4,745,018
$
11,965,843
2,497,973
15,109,861
2013
2012
$
27,797,951
2,851,893
$
28,375,842
4,254,018
Total
2013
$
2012
40,922,103
2,415,909
7,596,911
$
40,341,685
2,497,973
19,363,879
29,734,268
36,531,801
1,655,827
28,968,709
31,075,385
770,211
324,102
312,851
29,734,268
36,531,801
1,979,929
28,968,709
31,075,385
1,083,062
Total revenues
88,206,975
90,387,982
30,973,946
32,942,711
119,180,921
123,330,693
Expenses:
General government
Culture, parks, and recreation
Public safety
Public services
Interest on long term debt
13,005,019
9,377,831
40,983,264
25,089,041
2,602,891
11,987,014
9,487,780
39,275,855
25,527,286
2,666,807
22,238,910
-
22,170,962
-
13,005,019
9,377,831
40,983,264
47,327,951
2,602,891
11,987,014
9,487,780
39,275,855
47,698,248
2,666,807
Total expenses
91,058,046
88,944,742
22,238,910
22,170,962
113,296,956
111,115,704
Increase in
net position before transfers
(2,851,071)
1,443,240
8,735,036
10,771,749
5,883,965
12,214,989
3,735,515
3,985,048
(3,735,515)
(3,985,048)
884,444
5,428,288
4,999,521
6,786,701
Transfers
Increase in net position
Net position—beginning
Net position—ending
$
358,710,349
359,594,793
$
353,282,061
358,710,349
$
218,683,037
223,682,558
$
211,896,336
218,683,037
-
-
5,883,965
$
577,393,386
583,277,351
12,214,989
$
565,178,397
577,393,386
The decrease in capital grants and contributions revenue in 2013 was primarily due to two items.
In 2012, there was a bond sale that provided funding for infrastructure improvements in the
Castle Hills Public Improvement Districts located in the City’s extraterritorial jurisdiction ($8.3
million). In 2013, there were fewer commercially developed projects dedicating infrastructure
and right-of-way to the City. These revenues decreased $2.8 million from 2012.
The most significant governmental expense for the City is personnel cost. For the year, payroll
costs were $52,568,082 or 57.7% of total expenses. Payroll costs were closely monitored and
came in $1,644,401 less than budgeted.
For activities, public safety incurred expenses of $40,983,264. These expenses were offset by
revenues of $6,021,116, which were collected from a variety of sources, with the largest being
from fines and forfeitures. The largest portion of public safety is the cost of personnel which is
$34,923,007. Other significant governmental expenses for the City include public services which
incurred $25,089,041 in expenses, of which $7,309,171 represents personnel charges and the
general government activity which incurred $13,005,019 in expenses, of which $5,976,254
represents personnel charges.
General government encompasses mayor and council,
administration, legal, finance, human resources, information technology services, tourism,
economic development and general government departments. The Parks and Leisure Services
Department incurred $9,377,831 in expenses, of which $4,359,650 represents personnel charges.
21
SEPTEMBER 30, 2013
Business-type Activities
Business-type activities increased the City’s net position by $4,999,521. The increase in net
revenues is the result of several factors, including the following:

The City’s water and sewer system recorded charges for services of $27,797,951. Non-cash
capital contributions from developers and cash receipts in the form of development impact
fees amounted to $2,851,893. Developer contributions are public improvement infrastructure
projects that are completed by the developer. Prior to transfers, the charges for services
exceeded expenses by $5.559 million.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
At the end of fiscal year 2013, the City had $534.4 million invested in a broad range of capital
assets, including police and fire equipment, buildings, park facilities, roads, bridges, and water
and sewer lines.
Table 4: Capital Assets at Year End
Capital Assets at Year-end
Net of Depreciation
2013
2012
Improvements
Land
Buildings
Machinery and equipment
Construction in progress
Water system
Sewer system
Total
$
$
211,839,564
49,219,037
47,040,088
11,280,058
13,980,932
333,359,679
$
$
2013
2012
211,952,153
48,557,117
49,208,722
11,619,750
15,148,762
336,486,504
$
$
22
454,604
2,368,892
716,967
976,299
12,904,268
115,801,687
67,843,025
201,065,742
$
$
500,377
2,368,892
745,813
965,193
25,903,371
99,391,326
67,659,611
197,534,583
Total
2013
$
$
212,294,168
51,587,929
47,757,055
12,256,357
26,885,200
115,801,687
67,843,025
534,425,421
2012
$
$
212,452,530
50,926,009
49,954,535
12,584,943
41,052,133
99,391,326
67,659,611
534,021,087
SEPTEMBER 30, 2013
Major capital asset projects completed during 2012-2013 include:
Midway Pump Station
Purnell Street
paving, drainage, and water line improvements
Railroad Street
paving and drainage improvements
Bellaire Heights
paving, drainage, and sidewalk improvements
Corporate Drive Extension
Waters Ridge to DGNO railroad
Midway Ground Storage Reservoir
(2) 2012 F-450 Type 1 Horton Ambulance
Walters Street Land Purchase (for parking lot)
Audio/Visual Equipment Upgrades
Council conference room and chambers
Palisades Lift Station
City Wide Fiber Optic Extension Project
Fire Station # 7
ADA Inclusive Playground Equipment for Memorial Park
Diamond Hill Estates screening wall
$
16,728,625
4,960,619
4,234,903
2,481,737
2,307,740
1,399,940
407,689
274,233
218,111
215,606
178,736
$
150,000
144,544
33,702,483
The City’s fiscal year 2013 capital improvement program authorizes it to spend $151 million for
capital projects. These improvements are in the following categories: water and sewer, street,
drainage, park, municipal/technology and public safety. The aforementioned amount of $151
million is made up of both current year appropriations, as well as carryover amounts
appropriated but not yet expended.
To support the capital improvement program, funds are obtained from the issuance of bonds,
interest earnings, transfers from operating funds, developer contributions, or a combination of
these sources. To illustrate, water and sewer system improvements for 2013-2014 consist of
$4.902 million in transfers from water and sewer operating funds for water lines, sewer lines,
painting the elevated storage tanks, a corrosion control and odor abatement program, and inflow
and infiltration repairs. General Fund transfers for 2013-2014 include $3.413 million to fund
concrete, asphalt, and sidewalk repairs. Municipal/technology improvements for 2013-2014
include $1.198 million for fiber expansions, network upgrades, and miscellaneous printer, phone,
and computer replacements.
Additional information on the City of Lewisville’s capital assets can be found in Note 5 of the
Notes to Financial Statements included in this report.
23
SEPTEMBER 30, 2013
Debt
At year end, the City had $149.5 million in general obligation bonds, certificates of obligation,
and revenue bonds outstanding as compared to $144.2 million at the end of the prior fiscal year,
an increase of 3.7% percent as shown in Table 5.
Table 5: Outstanding Debt at Year End
(In Thousands)
2013
2012
General obligation bonds and
certificates of obligation
(backed by the City)
General obligation and revenue bonds
(backed by fee revenues)
Totals
$
99,520
$
-
$
99,520
94,085
Business-type Activities
2013
2012
$
-
$
94,085
$
-
$
-
Totals
2013
2012
$ 99,520
$ 94,085
50,005
50,115
50,005
50,115
50,005
$ 50,115
$149,525
$144,200
During the current fiscal year, the City issued General Obligation Bonds in the amount of
$12.455 million and Waterworks and Sewer System Revenue Bonds in the amount of $5.205
million. The General Obligation debt provided funds for constructing improvements to the
City’s streets, sidewalks and related drainage improvements. The Waterworks and Sewer
System Revenue debt provided funds for constructing, acquiring and installing improvements,
additions and extensions to the City’s waterworks and sewer system. For more detailed
information on long-term debt activity, refer to Note 11 in the Notes to Financial Statements.
The City’s General Obligation Bonds and Water and Sewer – Revenue Bonds carry an AAA
rating from Standard and Poor’s and Fitch Ratings. Both of these entities are national rating
agencies. The City is permitted by Article XI, Section 5, of the State of Texas Constitution to
levy taxes up to $2.50 per $100 of assessed valuation for general governmental services
including the payment of principal and interest on general obligation long-term debt. The current
ratio of tax-supported debt to assessed value of all taxable property is 1.57%.
THE CITY’S FUNDS
At the close of the City’s fiscal year on September 30, 2013 the governmental funds of the City
reported a combined fund balance of $91.0 million, a $12.2 million increase over the previous
year.
24
SEPTEMBER 30, 2013
The City’s General Fund balance was $31.5 million which was $418,431 more than the prior
year fund balance mainly due to an increase in sales tax collections. Current year’s activity
resulted in a positive variance of $6.7 million when compared to the estimated ending fund
balance of $24.8 million per the final amended budget. Significant budgetary variances between
the final amended budget and the actual results can be summarized as follows:

Tax revenue was $2,907,142 more than estimated. The primary reason was sales tax
revenue, which was $2,023,124 more than estimated and $1,906,143 more than prior year
receipts of which the conservative budget is based. Property tax revenues were favorable
to budget by146,326.

Licenses and Permits revenue was $747,586 higher than budgeted primarily due to
increased building-related permit revenue. This category of revenue is susceptible to
current economic conditions and changes in planned construction.

Charges for services was $352,347 higher than budgeted primarily due to land host fee
receipts being higher than anticipated.

When combined, Police, Fire, Public Services, Community Development and Parks and
Leisure Services departments had lower than expected expenditures resulting in a
favorable variance of $1,436,287. This variance is primarily due to salary savings.

General government expenditures were $420,431 lower than budget. Legal expenditures
($140,176) and contractual obligations ($122,496) were both favorable to budgeted
expenditures this year.
The City’s Water and Sewer Fund net position of $223.6 million increased by $5.0 million over
the prior year net position balance. The increase is primarily due to operating revenues and
dedicated infrastructure continuing to remain well above operating expenses.
The City’s Internal Service Funds net position of $17.8 million decreased by $50,290 from the
prior year net position balance. This is primarily due to the Maintenance and Replacement
Fund’s $275,453 decrease in net position from planned capital replacement costs exceeding one
year’s lease payments.
General Fund Budgetary Highlights
During fiscal year 2012-13, the City Council amended the budget for the General Fund on five
separate occasions, in May for the Old Town Park Plaza, in August for the Timber Creek Stream
Bank Stabilization Improvements, in November for FEMA Assistance to Firefighters grant
program City match, and in December for the purchase of New World Financial and Human
Resources software and for the routine supplement completed each year for prior year
encumbrances (purchases) that overlap into the next fiscal year.
Staff reviewed the supplemental appropriations and determined that reserves were sufficient to
recommend approval. The net decrease to the General Fund for the year was $2,811,802.
25
SEPTEMBER 30, 2013
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES
The City’s elected and appointed officials considered many factors when setting the fiscal year
2014 budget, tax rates, and fees that will be charged for the business-type activities. One of those
factors is the economy. The population growth experienced by the City has stimulated local
business and development activity. Lewisville’s current population is estimated at 99,453 with a
population at build-out at approximately 111,000. The economic climate in Lewisville is stable
with low unemployment and as a result Lewisville enjoys an above-average income level per
household. This in combination with the City’s proximity to two major highways, the Dallas Fort
Worth International Airport, and an active economic development program have made
Lewisville a leader in the regional retail market. The City continues to attract new and existing
companies due to the strategy of working diligently with businesses on relocation incentives.
These factors are taken into consideration when adopting the General Fund budget for fiscal year
2014. The combined budget appropriation for fiscal year 2013-14 totals $117.5 million for
twenty-one operating funds. Another $14.9 million is appropriated in the City’s three internal
service funds.
Ad valorem tax revenue is determined by two major factors: the total assessed value established
by the Denton County Central Appraisal District and the tax rate established by the Lewisville
City Council. The Lewisville City Council chose to hold the tax rate steady for the current fiscal
year at .44021 cents per $100 assessed valuation. This tax rate brings in more tax revenue
($1.358 million) for the 2013-14 fiscal year due to the new tax rate being applied to an increased
tax base. Property values increased $403 million or 6.24%. This brings the property tax revenue
budgeted for FY 2013-14 to $22.880 million making it the single largest General Fund revenue
source.
The General Fund’s second largest revenue source in fiscal year 2013-2014 is sales tax receipts.
Due to the volatility of the sales tax revenue source, the City has been very conservative in
projecting sales tax revenue. This conservative philosophy was formalized in the City’s written
Revenue Policy adopted by the City Council. Under this policy sales tax revenue budget for
subsequent fiscal years is limited to the estimated receipts for the current fiscal year. This
practice effectively mitigates to a large degree the volatile nature of the sales tax revenue source.
The City’s budgeted sales tax revenue is $21.063 million.
Budgeted operating expenditures in the General Fund are expected to increase $3.2 million from
the 2012-2013 fiscal year re-estimated budget. These expenditures are offset by increases in
revenue. The only change in fund balance is the $3.082 million in transfers out for one time
expenditures.
26
SEPTEMBER 30, 2013
As for the City’s business type activities, the City budgeted a decrease of $4.185 million for the
Water and Sewer Fund’s net assets. The primary item contributing to this is the increase in the
amount of the transfers to capital improvement projects for water lines, sewer lines, and inflow
and infiltration repairs.
Water and sewer rates were reviewed by the City Council for fiscal year 2013-2014. There was
a 1.5% increase in water rates and no change to sewer rates.
CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, investors and
creditors with a general overview of the City’s finances and reflect the City’s accountability for
the resources it receives. If you have questions about this report or need additional financial
information, contact the Director of Finance, City of Lewisville, 151 West Church Street,
Lewisville, Texas 75057.
27
BASIC FINANCIAL
STATEMENTS
STATEMENT OF NET POSITION
SEPTEMBER 30, 2013
EXHIBIT 1
Governmental
Activities
Primary Government
Business-type
Activities
Total
Component
Units
ASSETS
Cash
$ 20,884,709
Investments
116,823,385
Receivables (net of allowances for uncollectibles)
10,325,670
Internal balances
(45,525)
Note receivable from component units
36,455,000
Inventory of supplies
105,708
Prepaid items
2,727,501
Restricted assets:
Cash
Investments
Interest receivable
Deferred charges
628,035
Capital assets:
Non-depreciable
63,199,969
Depreciable (net of accumulated depreciation)
270,159,710
Total assets
$
4,022,495
24,704,267
4,573,424
45,525
3,810
$
7,095,940
38,138,068
27,956
574,290
24,907,204
141,527,652
14,899,094
36,455,000
105,708
2,731,311
$
1,624,976
9,239,232
1,019,719
892
15,273,160
185,792,582
7,095,940
38,138,068
27,956
1,202,325
78,473,129
455,952,292
228,715
$ 521,264,162
$ 280,251,517
$ 801,515,679
$
19,777,956
$
$
$
$
59,779
20,503
136,720
-
125,908
7,538,514
LIABILITIES AND NET POSITION
Liabilities:
Accounts payable
Incurred but not reported claim reserve
Retainage payable
Accrued liabilities
Accrued interest payable
Contracts and retainage payable
Deposits payable
Unearned revenue
Escrow payable
Noncurrent liabilities:
Due within one year
Due in more than one year
Total liabilities
Net Position:
Restricted for debt service
Restricted for other purposes
Restricted for tax increment reinvestment zone
Unrestricted
Total net position
Total liabilities and net position
2,753,305
1,318,794
277,475
1,755,866
454,252
14,685
38,800,555
1,110,584
1,277,674
204,828
261,641
733,297
1,489,877
30,624
4,030,979
1,318,794
277,475
1,960,694
715,893
733,297
1,504,562
38,800,555
1,141,208
12,060,061
103,123,792
5,573,595
46,997,423
17,633,656
150,121,215
1,748,319
35,500,520
161,669,369
56,568,959
218,238,328
37,465,841
314,990,028
1,216,415
9,539,451
33,848,899
186,611,050
1,688,303
35,383,205
501,601,078
2,904,718
9,539,451
69,232,104
74,796
1,344,538
(19,107,219)
359,594,793
223,682,558
583,277,351
(17,687,885)
$ 521,264,162
$ 280,251,517
$ 801,515,679
The Notes to Financial Statements are
an integral part of these statements.
28
$
19,777,956
STATEMENT OF ACTIVITIES
Functions/Programs
Primary government:
Governmental activities:
General government
Culture, parks and recreation
Public safety
Public services
Interest on long-term debt
Expenses
$ 13,005,019
9,377,831
40,983,264
25,089,041
2,602,891
Charges for
Services
$
3,383,721
1,558,232
6,021,116
2,161,083
-
Total governmental activities
91,058,046
13,124,152
Business-type activities:
Water & sewer
Total business-type activities
22,238,910
22,238,910
27,797,951
27,797,951
113,296,956
40,922,103
3,850,517
235,759
Total primary government
Program Revenues
Operating
Capital
Grants and
Grants and
Contributions
Contributions
$
321,365
83,620
1,053,375
957,549
-
$
2,415,909
767,867
3,977,151
4,745,018
-
2,851,893
2,851,893
2,415,909
7,596,911
Component units
Lewisville Parks and Library
Development Corporation
Tax increment reinvestment zone
(Old Town)
Total component units
726,823
$
4,577,340
-
$
235,759
$
GENERAL REVENUES AND TRANSFERS:
Taxes:
Property taxes, levied for general purposes
Sales taxes
Other taxes
Franchise taxes
Hotel motel taxes
Penalties and interest
Intergovernmental
Investment earnings
Gain on sale of assets
Miscellaneous
Transfers
Total general revenues and transfers
Change in Net Position
NET POSITION, beginning of year
NET POSITION, end of year
29
-
-
$
-
EXHIBIT 2
Net (Expenses) Revenue and
Changes in Net Position
Primary Government
Governmental
Business - Type
Activities
Activities
$
(9,299,933)
(6,968,112)
(33,908,773)
(17,993,258)
(2,602,891)
$
(70,772,967)
(70,772,967)
-
$
$
-
8,410,934
8,410,934
8,410,934
8,410,934
-
8,410,934
(62,362,033)
-
-
-
-
71,657,411
$
-
-
$
(9,299,933)
(6,968,112)
(33,908,773)
(17,993,258)
(2,602,891)
(70,772,967)
-
29,579,363
27,451,139
1,200,502
5,814,797
2,065,363
154,905
624,125
210,934
3,477
817,291
3,735,515
$
-
-
$
-
Component
Units
Total
120,530
203,572
(3,735,515)
-
(3,614,758)
$
$
(726,823)
-
29,579,363
27,451,139
1,200,502
5,814,797
2,065,363
154,905
624,125
331,464
3,477
1,020,863
-
$
(4,341,581)
$
581,198
5,685,240
19,499
1,500
-
(3,411,413)
68,245,998
6,287,437
884,444
4,999,521
5,883,965
1,945,856
358,710,349
218,683,037
577,393,386
359,594,793
$
223,682,558
$
583,277,351
30
(19,633,741)
$
(17,687,885)
GOVERNMENTAL FUNDS
BALANCE SHEET
SEPTEMBER 30, 2013
EXHIBIT 3
General
Other
Total
Debt
Capital
Governmental
Governmental
Service
Projects
Funds
Funds
ASSETS
Cash
Investments
Receivables (net of
allowances for uncollectibles)
Taxes
Accounts
Unbilled accounts
Interest
Court
Due from other funds
Note receivable from component units
Prepaid items
Total assets
$
3,996,021
22,694,424
$
200,741
1,425,957
$ 12,956,590
73,683,794
6,065,578
1,906,351
269,311
19,012
298,558
238,910
381,982
$ 35,870,147
47,781
741
36,455,000
$ 38,130,220
60,716
$ 86,701,100
1,269,494
1,589,353
9,200
1,427,315
83,507
4,378,869
4,553
36,502,781
36,507,334
1,226,684
38,800,554
1,027,077
277,475
41,331,790
$
$
1,519,624
7,679,456
924,955
699,158
6,315
2,265,652
13,095,160
$
$
18,672,976
105,483,631
7,038,314
2,605,509
269,311
86,784
298,558
238,910
36,455,000
2,647,634
173,796,627
LIABILITIES AND FUND BALANCES
Liabilities
Accounts and contracts payable
Accrued liabilities
Deposits payable
Deferred revenue
Money held in escrow
Retainage
Due to other funds
Total liabilities
221,081
84,615
5,485
28,662
238,910
578,753
2,717,259
1,673,968
4,553
14,685
76,759,312
1,110,584
277,475
238,910
82,796,746
2,265,652
2,647,634
31,849,522
-
50,541
9,488,910
1,622,886
31,900,063
9,488,910
6,380,350
-
684,724
6,380,350
684,724
26,580
12,516,407
7,139,438
564,870
30,571,006
90,999,881
Fund Balances:
Nonspendable
Restricted for:
Debt service
Capital projects
Other purposes
Committed to:
Capital projects
Other purposes
Assigned to:
Capital projects
Other purposes
Unassigned
Total fund balances
Total liabilities and fund balances
381,982
-
1,622,886
-
-
-
-
538,290
30,571,006
31,491,278
1,622,886
7,139,438
45,369,310
$ 35,870,147
$ 38,130,220
$ 86,701,100
31
$
13,095,160
$
173,796,627
RECONCILIATION OF GOVERNMENTAL FUNDS BALANCE SHEET
TO THE GOVERNMENT WIDE STATEMENT OF NET POSITION
SEPTEMBER 30, 2013
Total fund balances -- governmental funds
EXHIBIT 4
$
90,999,881
Amounts reported for governmental activities in the statement of net position
are different because:
Costs associated with the issuance of governmental long term debt are expensed
when incurred in the fund statements and capitalized and amortized over the life
of the debt in the government-wide statements.
628,035
Capital assets used in governmental activities are not financial resources
and therefore are not reported as assets in governmental funds.
327,912,188
Interest payable on long term debt does not require current financial resources,
therefore interest payable is not reported as a liability in the governmental funds
balance sheet.
(449,699)
Revenues earned but not available within sixty days of the year
end are not recognized as revenue on the fund financial statements.
37,958,757
Long-term liabilities, including bonds payable, are not due and payable in the current
period and therefore are not reported in the fund financial statements.
(115,183,853)
An internal service fund is used by management to charge the costs of certain
activities, including insurance and vehicle fleet management, to individual funds.
The assets and liabilities of the internal service fund are included in
governmental activities in the government-wide statement of net position, net of
amounts charged to enterprise funds of $45,525.
Total net position--governmental activities
17,729,484
$
32
359,594,793
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
General
REVENUES:
Property and other taxes
Licenses and permits
Intergovernmental
Recreation
Fines
Investment earnings
Grants
Public safety
Public services
Contributions and donations
Miscellaneous
Total revenues
$
EXPENDITURES:
Current
General government
Culture, parks recreation
Public safety
Public services
Debt service
Principal
Interest and fiscal charges
Bond issuance costs
Capital outlay
Total expenditures
EXHIBIT 5
General
Other
Total
Debt
Capital
Governmental
Governmental
Service
Projects
Funds
Funds
50,753,584
2,375,771
6,051,283
1,093,266
2,954,961
48,905
$ 7,923,410
624,125
5,425
882,124
64,159,894
15,457
8,568,417
7,908,960
5,971,888
36,449,811
9,435,481
-
$
1,147,163
141,568
$
851,500
2,140,231
7,602,737
287,645
15,036
$
66,279,731
2,375,771
1,771,288
6,051,283
1,380,911
2,954,961
210,934
515,834
945,453
583,019
1,360,957
11,310,681
515,834
945,453
1,434,519
2,258,538
86,179,223
2,441,098
317,100
3,037,992
1,161,152
10,350,058
6,288,988
39,487,803
10,596,633
201,220
14,239,974
14,441,194
1,336,614
8,293,956
5,410,000
2,942,234
201,220
16,208,343
91,485,279
3,016,725
(5,306,056)
-
631,755
60,397,895
5,410,000
2,942,234
8,352,234
3,761,999
216,183
(12,300,963)
3,936,467
(7,280,035)
-
(50,000)
-
7,255,678
12,455,000
1,276,220
131,102
(257,697)
-
11,323,247
(7,587,732)
12,455,000
1,276,220
(3,343,568)
(50,000)
20,986,898
3,477
(123,118)
3,477
17,470,212
166,183
8,685,935
Excess (deficiency) of revenues over
(under) expenditures
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
Issuance of general obligation bonds
Premium (discount) on
issuance of general obligation bonds
Proceeds from sale of assets
Net other financing sources (uses)
Net change in fund balances
418,431
FUND BALANCES, beginning of year
FUND BALANCES, end of year
$
31,072,847
1,456,703
36,683,375
31,491,278
$ 1,622,886
$ 45,369,310
33
2,893,607
12,164,156
9,622,800
$
12,516,407
78,835,725
$
90,999,881
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE GOVERNMENT WIDE STATEMENT OF ACTIVITIES
Net changes in fund balances, total governmental funds
EXHIBIT 6
$ 12,164,156
Amounts reported for governmental activities in the statement of activities
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. Dispositions of capital assets decrease net
position. This amount is the net of capital outlay of $12,537,926, less dispositions
of $142,075.
12,395,851
Governmental funds do not recognize assets contributed by developers. However,
in the statement of activities the fair market value of those assets are recognized as
revenue, then allocated over their estimated useful lives and reported as depreciation
expense.
2,163,336
Depreciation expense on capital assets is reported in the government-wide statement of
activities and changes in net position, but they do not require the use of current
financial resources. Therefore, depreciation expense is not reported as expenditures
in the governmental funds.
(17,194,352)
The issuance of long term debt (e.g. bonds) provides current financial resources to
governmental funds, while the repayment of the principal of long-term debt consumes
the current financial resources of governmental funds. Neither transaction, however,
has any effect on net position. Also, governmental funds report the effect of issuance
costs, premiums, discounts, and similar items when debt is first issued, whereas the
the amounts are deferred and amortized in the statement of activities. This amount
(bond principal payments of $5,410,000, $210,720 of issuance costs and $231,545 of
amortization of premium less bond proceeds of $12,455,000, premium paid of $1,276,220,
and the amortization of deferred loss on refunding of $82,465 and of issuance costs of $67,360)
is the net effect of these differences in the treatment of long term debt and related items.
(8,028,780)
Current year changes in the long term liability for compensated absences do not require
the use of current financial resources; therefore, are not reported as expenditures in
governmental funds.
(342,195)
Current year changes in the long term liability for net pension benefit obligations
do not require the use of current financial resources; therefore, are not reported as
expenditures in the governmental funds.
(132,151)
Current year changes in accrued interest payable do not require the use of current
financial resources; therefore, are not reported as expenditures in governmental
funds.
46,903
Certain revenues in the government-wide statement of activities that do not provide
current financial resources are not reported as revenue in the governmental funds.
(139,061)
Internal service funds are used by management to charge the costs of certain activities,
such as the purchase of equipment and insurance, to individual funds. The change in net
position of certain internal service funds is reported with governmental activities. This is
the amount of the change in net position allocated to governmental activities.
Change in net position of governmental activities
(49,263)
$
34
884,444
PROPRIETARY FUNDS
SEPTEMBER 30, 2013
Governmental
Activities Internal
Service Funds
Business-Type
Activities Enterprise Fund
ASSETS
Current Assets
Cash
Investments
Receivables (net of allowance for uncollectibles
of $354,961)
Accounts
Unbilled trade accounts
Interest receivable
Other
Inventory of supplies, at cost
Prepaid items
Restricted assets
Cash
Investments
Interest receivable
$
4,022,495
24,704,267
$
1,409,207
3,140,895
23,322
3,810
9,457
17,737
105,708
79,867
7,095,940
38,138,068
27,956
Total current assets
-
78,565,960
Noncurrent Assets
Deferred bond issuance costs, net of amortization
Capital assets
Land
Land improvements
Buildings
Other improvements
Water system
Sewer system
Motor vehicles
Total capital assets
Less accumulated depreciation
Capital assets, net of accumulated depreciation
Total assets
$
35
13,764,256
574,290
Total noncurrent assets
2,211,733
11,339,754
-
2,368,892
106,700
1,131,504
658,008
159,796,481
103,029,886
4,561,671
12,904,268
284,557,410
(83,491,668)
201,065,742
274,272
5,492,375
20,040,167
25,806,814
(20,359,323)
5,447,491
201,640,032
5,447,491
280,205,992
$
19,211,747
EXHIBIT 7
Current Liabilities
Current liabilities payable from restricted assets
Deposits payable
Escrow payable
Current maturities of bonds payable
$
Total current liabilities payable from restricted
1,489,877
261,641
733,297
30,624
5,140,000
$
7,655,439
-
Accounts payable
Accrued liabilities
Compensated absences
1,277,674
204,828
433,595
36,046
1,318,794
81,898
-
Total current liabilities
1,916,097
1,436,738
Noncurrent Liabilities
Bonds payable
Deferred loss on refunding
Net pension obligation
46,313,497
(347,267)
343,274
687,919
-
Total noncurrent liabilities
46,997,423
-
Total liabilities
56,568,959
1,436,738
186,611,050
1,688,303
35,337,680
5,447,491
12,327,518
-
NET POSITION:
Restricted for bond requirements
Unrestricted
Total net position
$
36
223,637,033
$
17,775,009
RECONCILIATION OF ENTERPRISE FUND STATEMENT OF NET POSITION
TO THE GOVERNMENT WIDE STATEMENT OF NET POSITION
SEPTEMBER 30, 2013
Total net position -- enterprise fund
EXHIBIT 8
$
223,637,033
Amounts reported for business-type activities in the statement of net position
An internal service fund is used by management to charge the costs of certain
activities, including insurance and vehicle fleet management, to individual funds.
The assets and liabilities of the internal service fund are included in
governmental activities in the government-wide statement of net position. The
amount shown as the accumulated amount is allocated to business type
activities since the adoption of GASB 34.
Total net position--business-type activities
45,525
$
37
223,682,558
PROPRIETARY FUNDS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
OPERATING REVENUES:
Charges for sales and services
Miscellaneous
EXHIBIT 9
Business-Type
Governmental
Activities Internal
Service Funds
$
$
Total operating revenues
OPERATING EXPENSES:
Cost of sales and services, net of reimbursements
Administrative
Depreciation
Total operating expenses
Total operating income (loss)
27,797,951
203,572
11,706,983
5,536
28,001,523
11,712,519
7,690,196
7,563,584
5,674,577
8,460,902
1,698,574
1,886,989
20,928,357
12,046,465
7,073,166
(333,946)
NONOPERATING REVENUES (EXPENSES):
Investment earnings
Interest expense
Amortization
Gain on disposal of capital assets
120,530
(1,344,808)
35,282
-
22,128
79,509
Total nonoperating revenues (expenses)
(1,188,996)
101,637
5,884,170
(232,309)
INCOME (LOSS) BEFORE TRANSFERS
AND CAPITAL CONTRIBUTIONS
TRANSFERS AND CAPITAL CONTRIBUTIONS:
Transfers in
Transfers out
Contributions from other funds
Contributions from developers
Contributions - impact fees
50,000
(3,785,515)
976,952
1,874,941
Total transfers and capital contributions
1,000,000
(1,000,000)
182,019
-
(883,622)
182,019
5,000,548
CHANGE IN NET POSITION
(50,290)
218,636,485
NET POSITION, beginning of year
$
NET POSITION, end of year
38
223,637,033
17,825,299
$
17,775,009
EXHIBIT 10
RECONCILIATION OF THE ENTERPRISE FUND
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
TO THE GOVERNMENT WIDE STATEMENT OF ACTIVITIES
Net changes in fund net position-proprietary funds
$ 5,000,548
Amounts reported for business-type activities in the statement of activities
Internal service funds are used by management to charge the costs of certain
activities, such as the purchase of equipment and insurance,
to individual funds. The change in net position of certain internal service
funds is reported with governmental activities. The amount shown represents
the change in net position allocated to business-type activities.
Change in net position of business-type activities
(1,027)
$ 4,999,521
39
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
Governmental
Activities Internal
Service Funds
Business-Type
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers
Cash received (paid) from transactions with other funds
Cash paid to employees for services
Cash paid for goods and services
Cash paid for claims
Cash received from miscellaneous items
$
Net cash provided by operating activities
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers from other funds
Transfers to other funds
Net cash used in noncapital financing activities
28,388,323
(166,372)
(7,581,421)
(7,319,274)
-
$
13,321,256
3,142,628
50,000
(3,785,515)
1,000,000
(1,000,000)
(3,735,515)
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Acquisition and construction of capital assets
Proceeds from the sale of revenue bonds
Proceeds from sale of equipment
Principal paid on revenue bond maturities
Impact fees
Interest paid
Premium on issuance of bonds
Bond issuance costs
13,208,960
(384,956)
(2,541,841)
(7,145,071)
5,536
-
(8,228,782)
5,205,000
(5,315,000)
1,874,941
(1,289,765)
481,262
(135,441)
(1,213,309)
79,509
-
(7,407,785)
(1,133,800)
(14,926,376)
22,072,869
127,433
(8,529,681)
5,833,603
23,852
7,273,926
(2,672,226)
NET INCREASE IN CASH
9,451,882
(663,398)
CASH, beginning of year
1,666,553
2,875,131
11,118,435
2,211,733
Net cash used in capital and related financing activities
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of investments
Proceeds from sale and maturities of investments
Interest received
Net cash provided by investing activities
CASH, end of year
Classified as:
Unrestricted cash and cash equivalents at end of year
Restricted cash and cash equivalents at end of year
TOTAL CASH AT END OF YEAR
40
$
$
4,022,495
7,095,940
11,118,435
$
$
2,211,733
2,211,733
(Continued)
EXHIBIT 11
Governmental
Activities Internal
Service Funds
Business-Type
RECONCILIATION OF OPERATING INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES:
Operating income (loss)
Adjustments to reconcile operating income to net cash
provided by operating activities:
Depreciation
Change in assets and liabilities(Increase) decrease in receivables
(Increase) decrease in inventory
(Increase) decrease in prepaid expenses
Increase (decrease) in accounts and contracts payable
Increase (decrease) in accrued liabilities
Increase (decrease) in deposits payable
Increase (decrease) in compensated absences
Increase (decrease) in due to other funds
$
7,073,166
$
5,674,577
1,886,989
386,800
(3,056)
305,029
18,624
50,325
(17,837)
(166,372)
Total adjustments
1,979
(1,036)
(18,635)
99,305
7,972
1,500,000
6,248,090
Net cash provided by operating activities
NON CASH INVESTING AND FINANCING ACTIVITIES:
From developer contributions of capital assets
Intragovernmental contributions
Increase (decrease) in fair value of investments
41
(333,946)
3,476,574
$
13,321,256
$
$
976,952
63,287
$
3,142,628
182,019
(7,984)
FIDUCIARY FUNDS
STATEMENT OF FIDUCIARY NET POSITION
SEPTEMBER 30, 2013
EXHIBIT 12
Castle Hills PID
Debt Service
Agency Fund
Lewisville OPEB
Liability Trust
Fund
$
$
ASSETS
ASSETS
Cash
Investments
Mutual funds - equity
Mutual funds - fixed income
Interest receivable
Total assets
11,030,057
9,299
22
11,030,079
2,587,841
1,145,380
3,742,520
11,030,079
11,030,079
2,535
2,535
LIABILITIES
LIABILITIES
Accounts payable
Due to debt holders
Total liabilities
NET POSITION
Held in trust for retiree health benefits
$
42
-
$
3,739,985
FIDUCIARY FUNDS
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
EXHIBIT 13
Lewisville OPEB
Liability Trust Fund
ADDITIONS
Employer contributions
Investment earnings
Unrealized/realized gain(loss), net
Total additions
$
DEDUCTIONS
Benefits
366,600
66,781
342,221
775,602
368,800
Total deductions
368,800
406,802
3,333,183
NET POSITION, beginning
$
NET POSITION, ending
43
3,739,985
DISCRETELY PRESENTED COMPONENT UNITS
SEPTEMBER 30, 2013
Lewisville
Housing
Finance
Corporation
ASSETS
Cash
Investments
Receivables
Accounts
Taxes
Interest
Deferred charges
Prepaid items
Capital assets
Non-depreciable
Depreciable (net of accum depr)
Total assets
$
Lewisville
Industrial
Development
Authority,
Inc.
$
-
1,020
5,799
$
NET POSITION (DEFICIT):
Restricted for tax increment reinvestment zone
Unrestricted
Total net position (deficit)
$
Lewisville
Tax
Parks and
Increment
Library
Reinvestment
Development
Zone
Corporation
(Old Town)
$
-
1,422,870
8,089,848
5
-
-
103
1,011,524
7,140
181,459
892
5,892
6,824
10,713,836
4
LIABILITIES
Current
Accrued liabilities
Noncurrent Liabilities
Due within one year
Due within more than one year
Total liabilities
Total liabilities and net position (deficit)
881
5,007
EXHIBIT 14
$
$
$
$
185,972
1,057,633
Increment
Reinvestment
Zone #2
$
14,233
80,945
Total
Component
Units
$
1,624,976
9,239,232
876
47,256
-
67
-
103
1,011,524
8,092
228,715
892
125,908
7,538,514
8,956,159
95,245
125,908
7,538,514
19,777,956
$
$
-
-
59,779
20,503
94,276
42,444
-
59,779
20,503
136,720
-
-
1,543,319
28,115,894
29,833,771
205,000
7,384,626
7,632,070
-
1,748,319
35,500,520
37,465,841
5,892
5,892
6,824
6,824
(19,119,935)
(19,119,935)
74,796
1,249,293
1,324,089
95,245
95,245
74,796
1,344,538
(19,107,219)
(17,687,885)
5,892
$
6,824
44
$
10,713,836
$
8,956,159
$
95,245
$
19,777,956
DISCRETELY PRESENTED COMPONENT UNITS
STATEMENT OF ACTIVITIES
Lewisville
Housing
Finance
Corporation
EXPENSES
General government
Interest on long term debt
Depreciation
Total expenses
$
PROGRAM REVENUES
Total program revenues
GENERAL REVENUES
Property taxes
Sales taxes
Investment earnings
Miscellaneous
Total general revenues
-
Lewisville
Industrial
Development
Authority,
Inc.
$
$
-
-
12
12
11
1,500
1,511
CHANGE IN NET POSITION (DEFICIT)
1,511
12
4,381
6,812
$
5,892
$
2,498,300
1,352,217
3,850,517
$
235,759
235,759
Net position (deficit), beginning
Net position (deficit), ending
Lewisville
Tax
Parks and
Increment
Library
Reinvestment
Development
Zone
Corporation
(Old Town)
-
-
EXHIBIT 15
6,824
45
2,087,537
(216,389)
1,324,089
$
$
5,631
2,498,300
1,697,433
375,976
4,577,340
235,759
235,759
73,058
127
73,185
1,540,478
$
-
Total
Component
Units
-
508,140
2,294
510,434
(21,207,472)
(19,119,935)
$
-
5,685,240
17,055
5,702,295
$
5,631
345,216
375,976
726,823
Increment
Reinvestment
Zone #2
581,198
5,685,240
19,499
1,500
6,287,437
73,185
1,945,856
22,060
(19,633,741)
95,245
$
(17,687,885)
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2013
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
A. Reporting Entity
The City of Lewisville is a municipal corporation governed by an elected mayor and a fivemember council. The accompanying financial statements present the government and its
component units, entities for which the government is considered to be financially accountable.
Discretely presented component units are reported in a separate column in the government-wide
financial statements (see note below for description) to emphasize that they are legally separate
from the government.
Blended Component Units

The Lewisville Health Benefit Trust was established by the City under the Texas Political
Subdivision Employees Uniform Group Benefits Act (Chapter 172 Texas Local Government
Code) to account for health insurance of employees, retirees and dependents. The City
Council appoints a board and board members are removable by the City Council. The City
Council approves the trust’s annual budget. The activities of the Lewisville Health Benefit
Trust are accounted for as a blended component unit and included with the internal service
funds as the Health Insurance Risk Pool Fund. The Health Benefit Trust is reported as a
blended component unit since it provides services exclusively for the City of Lewisville.

The Local Government Corporation was established July 2006 to assist in economic
development initiatives. Allowable under Chapter 431 of the Texas Transportation Code,
this corporation cannot incur any debt without City Council approval. The City Council
appoints a board and board members are removable by the City Council. The existing four
person board is comprised of current City Council members. The City Council approves the
corporation’s annual budget. In the event of dissolution, title to all assets transfer to the City.
The activities of the Lewisville Local Government Corporation are accounted for as a
blended component unit and included with the non-major governmental funds. The Local
Government Corporation is reported as a blended component unit since its governing body is
substantially the same as the City’s.

In November 2011, the City of Lewisville voters approved, in special election, the creation of
the Lewisville Crime Control and Prevention District. The District was formed for the
purpose of providing crime control and prevention programs derived from one-eighth cent
sales tax within the City of Lewisville. Allowable under Chapter 363 of the Texas Local
Government Code, the City Council appointed their own membership as the board of
directors of the District. The City Council approves the district’s annual budget. In the event
of dissolution, title to all assets transfer to the City. The activities of the Lewisville Crime
Control and Prevention District are accounted for as a blended component unit and included
with the non-major governmental funds. The District is reported as a blended component
unit since its governing body is the same as the City’s.
46
SEPTEMBER 30, 2013

In November 2011, the City of Lewisville voters approved, in special election, the creation of
the Lewisville Fire Control, Prevention, and Emergency Medical Services District. The
District was formed for the purpose of providing fire safety and emergency medical service
programs derived from one-eighth cent sales tax within the City of Lewisville. Allowable
under Chapter 344 of the Texas Local Government Code, the City Council appointed their
own membership as the board of directors of the District. The City Council approves the
district’s annual budget. In the event of dissolution, title to all assets transfer to the City.
The activities of the Lewisville Fire Control, Prevention, and Emergency Medical Services
District are accounted for as a blended component unit and included with the non-major
governmental funds. The District is reported as a blended component unit since its
governing body is the same as the City’s.
Discretely Presented Component Units
The following entities are accounted for as discretely presented component units since the
services provided are not entirely or exclusively for the City.

The Lewisville Housing Finance Corporation has been established to assist in evaluating
housing needs within the City. The City Council appoints a board and board members are
removable by City Council. The City Council approves the corporation’s annual budget. In
the event of dissolution, title to all assets transfer to the City. Financial statement
information can be obtained by contacting the Lewisville Housing Finance Corporation, P.O.
Box 299002, Lewisville, Texas 75029.

The Lewisville Industrial Development Authority, Inc. has been established to assist in
evaluating and considering approval of applications for financial participation by the
Authority in commercial development projects. The City Council appoints a board and board
members are removable by City Council. The City Council approves the authority’s annual
budget. In the event of dissolution, title to all assets transfer to the City. Financial statement
information can be obtained by contacting the Lewisville Industrial Development Authority,
P.O. Box 299002, Lewisville, Texas 75029.

The City of Lewisville, in conjunction with Denton County, created the Tax Increment
Reinvestment Zone Number 1, City of Lewisville, Texas, to provide additional financing
resources to further enhance the redevelopment of the Old Town area of the City. The City
Council appoints a board, and board members are removable by the City Council. The City
Council approves the zone’s annual budget. In the event of dissolution, title of all assets
transfer to the City. Financial statement information can be obtained by contacting the
Lewisville Tax Increment Reinvestment Zone Number 1, P. O. Box 299002, Lewisville,
Texas 75029.
47
SEPTEMBER 30, 2013

The City of Lewisville, in conjunction with Denton County, created the Tax Increment
Reinvestment Zone Number 2, City of Lewisville, Texas, to provide additional financing
resources to pay for infrastructure costs to facilitate a mixed-use development project on
approximately 427 acres at the intersection of I-35 and SH121. The City Council appoints
five members of the board and an additional two positions are reserved for appointment by
other taxing units levying taxes within the Zone. The City Council may remove board
members and approves the zone’s annual budget. Financial statement information can be
obtained by contacting the Lewisville Tax Increment Reinvestment Zone Number 2, P. O.
Box 299002, Lewisville, Texas 75029.

In September 2002 the City of Lewisville voters approved, in a special election, the creation
of the Lewisville Parks and Library Development Corporation. The Corporation was formed
for the purpose of funding public parks, recreation projects, and library projects from
revenues derived from a one-quarter cent sales tax within the City of Lewisville. The City
Council appoints a board and board members are removable by the City Council. The City
Council approves the corporation’s annual budget. In the event of dissolution, title of all
assets transfer to the City. Financial statement information can be obtained by contacting the
Lewisville Parks and Library Development Corporation, P. O. Box 299002, Lewisville,
Texas 75029.
B. Government-wide and Fund Financial Statements
The government-wide financial statements (i.e., the Statement of Net Position and the Statement
of Activities) report information on all of the non-fiduciary activities of the City 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 revenues, are reported separately from business-type activities, which rely to a
significant extent on fees and charges for support. Likewise, the primary government is reported
separately from certain legally separate component units for which the primary government is
financially accountable.
The statement of activities demonstrates the degree to which the direct expenses of a given
function or segment are offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or segment. Program revenues include 1) charges to
customers or applicants who purchase, use, or directly benefit from goods, services, or privileges
provided by a given function or segment and 2) grants and contributions that are restricted to
meeting the operational or capital requirements of a particular function or segment. Taxes and
other items not properly included among program revenues are reported instead as general
revenues.
Separate financial statements are provided for governmental funds, 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.
48
SEPTEMBER 30, 2013
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. 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 revenues in the year for which they are levied. Grants and similar items are recognized as
revenue as soon as all eligibility requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as
soon as they are both measurable and available. Revenues are considered to be available when
they are collectible within the current period or soon enough thereafter to pay liabilities of the
current period. For this purpose, the City considers revenues to be available if they are collected
within 60 days of the end of the current fiscal period. Expenditures generally are recorded when
a liability is incurred, as under accrual accounting.
However, debt service expenditures, as well as expenditures related to compensated absences
and claims and judgments, are recorded only when payment is due.
Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are
all considered to be susceptible to accrual and so have been recognized as revenues of the current
fiscal period. All other revenue items are considered to be measurable and available only when
cash is received by the City.
The City reports the following major governmental funds:
General Fund – The General Fund is the general operating fund of the City. It is used to
account for all financial resources except those required to be accounted for in another
fund.
Debt Service Fund – The City’s Debt Service Fund accounts for the resources accumulated
and payments made for principal and interest on long-term general obligation debt of
governmental funds.
General Capital Projects Fund – The General Capital Projects Fund is used to account for
the acquisition and construction of major capital facilities other than those financed by
proprietary funds and trust funds.
49
SEPTEMBER 30, 2013
The City reports the following non-major governmental funds:
Special Revenue Funds – The City’s Special Revenue Funds are used to account for
revenue sources that are legally restricted to expenditures for specified purposes. They
include the Hotel/Motel Tax Fund, Recreation Activity Fund, Grant Fund, Public
Improvement District Tax Fund, Municipal Court Security Fund, Municipal Court
Technology Fund, Police Asset Forfeiture Fund, Employee Benevolent Fund, Fire and
Police Training Fund, Law Enforcement Officer Standard Education Fund (LEOSE),
Donations Fund, Police Federal Forfeiture Fund, Juvenile Case Manager Fund, Lewisville
Local Government Corporation, Public, Education and Government (PEG) Programming
Fund, Lewisville Crime Control and Prevention District, and Lewisville Fire Control,
Prevention, and Emergency Medical Services District.
Castle Hills PID Capital Projects Fund – The City’s Castle Hills PID Capital Projects
Fund accounts for the acquisition and construction of major capital facilities financed by
the Castle Hills Public Improvement District.
The City reports the following major proprietary fund:
Water and Sewer Utility Enterprise Fund – The City’s Enterprise Fund is used to account
for operations of the City’s sale of treated water and the disposal of sewage and solid waste
for its citizens.
Additionally, the government reports the following fund types:
Internal Service Funds – The City’s Internal Service Funds are used to account for the
financing of goods or services provided by one department to other departments within the
City.

Self-Insurance Risk Fund – The City’s Self-Insurance Risk Fund accounts for
revenues from premium charges to the departments. Expenses include claim
payments, administrative costs, and reinsurance premiums for workers’
compensation, unemployment, and liability/property casualty programs.

Health Insurance Risk Pool Fund – The City’s Health Insurance Risk Pool Fund
accounts for revenues from premium charges to the departments, employee and
retirees for insurance coverage. Expenses include claims payments, administrative
costs, and reinsurance premiums for health and dental programs.

Maintenance and Replacement Fund – The City’s Maintenance and Replacement
Fund provides fleet maintenance services for City departments and accounts for the
purchase of all vehicles and major equipment operated by the City. Departments
pay monthly charges to provide funds for future replacement of capital outlay as
well as to reimburse the fund for current fleet repairs and maintenance.
50
SEPTEMBER 30, 2013
Agency and Trust Funds – The City’s agency fund is custodial in nature and does not
involve measurement of results of operations. The City’s trust fund is used to account for
assets held by the City in a trustee capacity.

Castle Hills Public Improvement District Debt Service Agency Fund – The City’s
Castle Hills Public Improvement District Debt Service Agency Fund accounts for
bond proceeds and related debt associated with the issuance of bonds held by the
City as an agent for the Public Improvement District.

Lewisville OPEB Liability Trust Fund – The City’s OPEB Liability Trust Fund
accounts for the funding of post-employment healthcare benefits for retirees of the
City and their dependents.
As a general rule, the effect of interfund activity has been eliminated from the government-wide
financial statements. Exceptions to this general rule are charges between the City's water and
sewer function and various other functions of the City and charges of the internal service funds
to the water and sewer funds. Elimination of these charges would distort the direct costs and
program revenues reported for the various functions concerned.
Program revenues include: 1) charges to customers or applicants for goods, services, or
privileges provided; 2) operating grants and contributions; and 3) capital grants and
contributions, including special assessments. Internally dedicated resources are reported as
general revenues rather than as program revenues. Likewise, general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from non-operating items.
Operating revenues and expenses generally result from providing services and producing and
delivering goods in connection with a proprietary fund's principal ongoing operations. The
principal operating revenues of the Enterprise Fund and of the City’s Internal Service Funds are
charges to customers for sales and services. The City also recognizes as operating revenue the
portion of tap fees intended to recover the cost of connecting new customers to the system.
Operating expenses for Enterprise Funds and Internal Service Funds include the cost of sales and
services, administrative expenses, and depreciation on capital assets. All revenues and expenses
not meeting this definition are reported as non-operating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the City’s policy to use
restricted resources first, then unrestricted resources as they are needed.
D. Cash, Investments, and Deposits
The government’s cash is considered to be cash on hand and demand deposits. The City pools
idle cash from all funds for the purpose of increasing income through coordinated investment
activities. The City follows GASB 31, Accounting and Financial Reporting for Certain
Investments and for External Investment Pools. Investments held by the City are reported at fair
value. Interest earnings are allocated to the respective funds based upon each fund’s relative
balance in the pool.
51
SEPTEMBER 30, 2013
E. 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” or “interfund
receivable/payable.”
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 government funds indicating that they are not available for
appropriation and are not expendable, available financial resources.
F. Property Taxes
Property taxes attach as an enforceable lien on property located in the City as of January 1.
Taxes are levied on October 1 and are due and payable on or before January 31 of the following
year. The Denton County Tax Assessor/Collector’s office bills and collects the City’s property
taxes. City property tax revenues are deferred when levied and are recognized as revenue when
collected.
The statutes of the State of Texas do not prescribe a legal limit. However, Article XI, Section 5
of the Texas Constitution, applicable to cities of more than 5,000 population that have adopted a
Home Rule charter, limits the ad valorem tax rate to $2.50 per $100 assessed valuation. For the
fiscal year ended September 30, 2013, the City had a tax margin of $2.05979 per $100 assessed
valuation based upon the maximum rates described above.
G. Inventories of Supplies
Inventories of supplies are valued at weighted average cost and consist of warehouse supplies,
postage and gasoline purchased by the City to use in its vehicles. The cost of the inventories is
recorded as an expense when consumed rather than when purchased.
H. Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are
recorded as prepaid in the government-wide and fund financial statements, as the City utilizes
the consumption method of accounting. These items consist primarily of software support,
training registration, subscriptions, and prepaid insurance.
I. Restricted Assets
Certain proceeds of Enterprise Fund Revenue Bonds and other amounts designated for capital
improvements as well as certain resources set aside for their repayment are classified as
restricted assets on the statement of net assets because their use is limited by applicable bond
covenants.
52
SEPTEMBER 30, 2013
J. Property, Plant, and Equipment
Capital assets, which include property, plant, equipment and infrastructure assets, are reported in
the applicable governmental or business-type activities columns in the government-wide
financial statements. Capital assets are defined by the City as assets with an initial, individual
cost of $5,000 or more and an estimated useful life in excess of one year. All purchased capital
assets are valued at cost where historical records are available and at an estimated historical cost
where no historical records exist. Donated capital assets are recorded at estimated fair market
value at the date of the donation. The cost 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.
Interest incurred during the construction phase of capital assets of business-type activities is
included as part of the capitalized value of the assets constructed. The total interest expense
capitalized by the City during the current fiscal year was $500,521.
The City has established the Maintenance and Replacement Internal Service Fund to account for
all City-owned vehicles. Charges for use of the vehicle in the form of lease payments are made
by the City departments to the Maintenance and Replacement Internal Service Fund to provide
for future acquisitions and replacement of City-owned vehicles.
Property, plant, and equipment of the City, is depreciated using the straight line method over the
following estimated useful lives:
Assets
Years
Water and sewer system
Infrastructure
Buildings
Other improvements
Vehicles
Servers
50
30
33
4-50
3-50
2-20
3
K. Compensated Absences
It is the City’s policy to permit employees to accumulate certain earned but unused vacation,
comp time, and sick pay benefits. Sick leave can be accrued up to 200 days but the City will
compensate only for hours in excess of 30 days up to a maximum of 90 days upon termination.
All vacation pay is accrued when incurred in the government-wide, proprietary, and component
unit fund financial statements. A liability for these amounts is reported in governmental funds
only if they have matured. Typically, the General Fund has been used in prior years to liquidate
such amounts in governmental funds.
53
SEPTEMBER 30, 2013
L. Long-Term Obligations
In the government-wide financial statements and proprietary fund statements, long-term debt and
other long-term obligations are reported as liabilities in the applicable governmental activities,
business-type activities, or proprietary fund statement of net assets. Bond premiums and
discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using
the straight line method, which approximates the effective interest rate method. Bonds payable
are reported net of the applicable bond premium or discount. Bond issuance costs are reported as
deferred charges and amortized over the term of the related debt.
In the fund financial statements, governmental funds recognize bond premiums and discounts, as
well as bond issuance costs, during the current period. The face amount of debt issued is
reported as other financing sources. Premiums and discounts received on debt issuances are
reported as other financing sources or uses. Issuance costs, whether or not withheld from the
actual debt proceeds received, are reported as debt service expenditures.
M. Fund Equity
In the fund financial statements, governmental funds establish fund balance classifications that
are comprised of a hierarchy based primarily on the extent to which a government is bound to
observe constraints imposed upon the use of resources reported.
Fund balances classified as non-spendable represent amounts that are not in a spendable form
(such as inventory). Fund balances classified as restricted are balances with constraints placed
on the use of resources by creditors, grantors, contributors, or laws and regulations of other
governments. Fund balances classified as committed can only be used for specific purposes
pursuant to constraints imposed by the City Council through an ordinance. Assigned fund
balances are constrained by the intent to be used for specific purposes but are neither restricted
nor committed. Assignments are made by City management based on council direction.
Unassigned fund balance is available for any purpose but is only reported in the General Fund.
For the classification of Governmental Fund balances, the City considers an expenditure to be
made from the most restrictive first when more than one classification is available.
For further details of the various fund balance classifications refer to Note 13.
54
SEPTEMBER 30, 2013
N. Budgets
Budgets are adopted on a basis consistent with GAAP. Annual appropriated budgets are adopted
for the General, Hotel/Motel Tax Special Revenue, Recreation Activity Special Revenue, Grant
Special Revenue, Public Improvement District Tax Special Revenue, Municipal Court Security
Special Revenue, Municipal Court Technology Special Revenue, Police Asset Forfeiture Special
Revenue (State and Federal), Fire and Police Training Special Revenue, Law Enforcement
Officer Standards and Education Special Revenue, Donations Special Revenue, Juvenile Case
Manager Special Revenue, PEG Programming Special Revenue, Lewisville Crime Control and
Prevention District, Lewisville Fire Control, Prevention, and Emergency Medical Services
District, Debt Service, Water and Sewer Utility Enterprise, Self-Insurance Risk Internal Service,
Health Insurance Risk Pool Internal Service, Maintenance and Replacement Internal Service,
Lewisville Parks and Library Development Corporation (4B Sales Tax), OPEB Liability Trust,
Old Town Tax Increment Reinvestment Zone, and Tax Increment Reinvestment Zone #2 Funds.
All annual appropriations lapse at fiscal year-end. Long range financial plans are adopted for all
capital project funds with all capital project appropriation balances to roll forward.
O. Deficit Net Position
The Lewisville Parks and Library Development Corporation has an agreement with the City of
Lewisville regarding the construction, maintenance and operation of improvements for public
park and library projects that states all capital assets shall be owned and operated by the City.
Therefore, all of the Corporation’s capital assets are transferred to the City annually and recorded
as contribution expense. The cumulative effects of these annual transfers along with results of
operations have resulted in a deficit net position balance of $19,119,935 at September 30, 2013.
2. CASH, INVESTMENTS, AND DEPOSITS
At year end, the government’s carrying amount of deposits was $32,003,144 and the bank
balance was $33,724,298. All bank balances, including the bank balance of the discretely
presented component units, were covered by Federal Depository Insurance or by collateral held
by a third-party custodian. The custodian serves contractually as the City’s agent.
Additionally, the City has an account under a safekeeping agreement with J.P. Morgan Chase
Bank, NA. The U.S. Government Treasury and Agency investments clear via the Federal
Reserve System through this account upon purchase, sale, or maturity. All assets in the account
are held in the City’s name.
55
SEPTEMBER 30, 2013
The City is authorized to make direct investments in the following:
1. U.S. Treasury securities maturing in less than three years;
2. Short-term obligations of U.S. Government agencies which are guaranteed by the full
faith and credit of the United States of America as to principal and interest;
3. Fully insured or collateralized certificates of deposits at commercial banks;
4. Repurchase agreements collateralized by U.S. Treasury or U.S. Government agency
securities in accordance with a master repurchase agreement approved by the
Investment Committee;
5. Direct or unconditionally guaranteed obligations of the State of Texas; and
6. Common trusts administered by Texas banks with assets consisting of all of the above
except certificates of deposit.
Investments at September 30, 2013 consisted of U.S. Government securities held by the City’s
agent in the City’s name. The carrying amount of these investments at September 30, 2013 was
$127,884,691. At September 30, 2013, the City also had $51,781,029 invested with TexPool, an
investment pool for state and local governments in Texas. The City’s portfolio average yield,
including TexPool, was 0.32290% in 2013.
The State Comptroller of Public Accounts exercises oversight responsibilities over TexPool, the
Texas Local Government Investment Pool. Oversight includes the ability to significantly
influence operations, designation of management, and accountability for fiscal matters.
Additionally, the State Comptroller has established an advisory board composed of both
participants in TexPool and other persons who do not have a business relationship with TexPool.
The Advisory Board members review the investment policy and management fee structure.
Finally, TexPool is rated AAAm by Standard & Poors. As a requirement to maintain the weekly
rating portfolio, information must be submitted to Standard & Poors, as well as the office of the
Comptroller of Public Accounts for review.
TexPool operates in a manner consistent with the SEC’s Rule 2a7 of the Investment Company
Act of 1940. TexPool uses amortized cost rather than market value to report net assets to
compute share prices. Accordingly, the fair value of the position in TexPool is the same as the
value of TexPool shares.
At year end, the City’s investment balances were as follows:
Carrying
Amount
U.S. Government Agency
securities
$
Investment in TexPool
Total investments
Fair
Value
127,884,691
$
51,781,029
$
179,665,720
56
$
Weighted Average
Maturity (Days)
127,884,691
617
51,781,029
1
179,665,720
375
SEPTEMBER 30, 2013
Interest Rate Risk
Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an
investment or a deposit. Generally, the longer the maturity of an investment the greater the
sensitivity of its fair value to changes in market interest rates. As a means of limiting its
exposure to fair value losses arising from rising interest rates, the City’s investments with
TexPool have maturities of less than one year or in U.S. government securities that are not highly
sensitive to changes in interest rates. In accordance with its investment policy, the City further
manages its exposure to declines in fair values by limiting the weighted average maturity of its
investment portfolio to less than one and one-half years.
Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the
holder of the investment. This is measured by the assignment of a rating by a nationally
recognized statistical rating organization (NRSROs). All investment pools policies require a
rating of AA or better from a nationally recognized rating agency. While State law allows
investments in commercial paper and corporate bonds that meet rating guidelines issued by
NRSROs, the City’s policy further restricts investments purchases, aside from those managed by
pools, to obligations of the United States or its agencies and instrumentalities; direct obligations of
the State of Texas or its agencies and instrumentalities; and other obligations, the principal of and
interest on which are unconditionally guaranteed or insured by, or backed by, the full faith and
credit of the State of Texas or the United States or its agencies and instrumentalities. The City’s
investments in U.S. Government Agency securities (Federal Home Loan Bank, Federal National
Mortgage Association, Federal Home Loan Mortgage Corporation, and Federal Farm Credit
Bank) are rated AA+ by Standard & Poors, and AAA and Aaa by Fitch and Moody’s,
respectively. The investment in Texas Local Government Pools (TexPool) carried a credit rating
of AAAm by Standard and Poor’s as of September 30, 2013.
Concentration of Credit Risk
In accordance with the City’s investment policy, investments are issued or explicitly guaranteed
by the U.S. Government or in external investment pools which are not considered to provide a
concentration of credit risk.
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository
financial institution, a government will not be able to recover its deposits or will not be able to
recover collateral securities that are in the possession of an outside party. The custodial credit
risk for investments is the risk that, in the event of the failure of the counterparty to a transaction,
a government will not be able to recover the value of its investment or collateral securities that
are in the possession of another party.
57
SEPTEMBER 30, 2013
The Public Funds Investment Act of Texas and the City’s investment policy requires that a
financial institution secure deposits made by state or local government entities by pledging
securities in an undivided collateral pool held by a depository regulated under state law (unless
so waived by the government unit). The market value of the pledged securities in the collateral
pool must equal at least the bank balances less FDIC insurance at all times. The City’s
investment policy further limits exposure to custodial risk on investments through the use of
third party safekeeping agreements, delivery versus payment, and limiting types of investments
listed earlier in this note.
3. RECEIVABLES
Government-wide receivables as of year end, including the applicable allowances for
uncollectable accounts, are as follows:
General
Receivables
Property taxes
Franchise taxes
Sales taxes
Mixed drink taxes
Accounts
Interest
Court
Grants
Ambulance
Gross total receivables
Less: allowance
Net total receivables
$
430,750
1,774,502
4,046,096
122,579
1,430,571
269,311
19,012
1,378,578
1,450,051
10,921,450
(2,362,640)
$ 8,558,810
$
$
Water
and
Sewer
Receivables
Property taxes
Franchise taxes
Sales taxes
Mixed drink taxes
Accounts
Interest
Court
Grants
Ambulance
Gross total receivables
Less: allowance
Net total receivables
$
$
1,764,168
3,140,895
51,278
4,956,341
(354,961)
4,601,380
General
Capital
Projects
Debt
Service
168,148
741
168,889
(120,367)
48,522
$
$
$
17,737
9,457
27,194
27,194
58
$
$
Total
Proprietary
Funds
Internal
Service
$
60,716
60,716
60,716
Non-Major
and Other
Funds
$
$
1,781,905
3,140,895
60,735
4,983,535
(354,961)
4,628,574
924,955
409,462
6,315
303,547
1,644,279
(13,851)
1,630,428
Total
All
Funds
$
$
598,898
1,774,502
4,971,051
122,579
3,621,938
3,410,206
147,519
1,378,578
303,547
1,450,051
17,778,869
(2,851,819)
14,927,050
Total
Governmental
Funds
$
$
598,898
1,774,502
4,971,051
122,579
1,840,033
269,311
86,784
1,378,578
303,547
1,450,051
12,795,334
(2,496,858)
10,298,476
SEPTEMBER 30, 2013
4. INTERFUND TRANSACTIONS
Interfund transactions and balances for the fiscal year 2013 were as follows:
Due to/from other funds
Receivable Fund
General Fund
Payable Fund
Non-major Governmental
$
Amount
238,910
Purpose
Short-term funding of deficit cash
Interfund Transfers
Transfers In
General
Transfers Out
Water and Sewer Utility
General
Nonmajor Governmental
150,952
Water and Sewer Utility
General Capital Projects
General Capital Projects
Internal Service
Debt Service
General
General
Internal Service
50,000
7,157,216
98,462
8,283
122,819
1,000,000
12,373,247
$
$
59
Amount
3,785,515
Purpose
Payments in lieu of taxes, franchise fee,
and indirect cost reimbursement
Indirect cost reimbursement and
excess funds transfer
Reimburse debt service
Financing of capital improvements
Financing of capital improvements
Excess fund consolidation
Matching funds
Excess funds transfer
SEPTEMBER 30, 2013
5. CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2013 was as follows:
Beginning
Balance
Gove rnmental Activitie s:
Governmental Funds
Capital assets, not being
depreciated:
Land
Total capital assets, not
being depreciated
Capital assets, being
depreciated:
Land improvements
Buildings
Other improvements
being depreciated
Accumulated depreciation:
Land improvements
Buildings
Other improvements
Total accumulated depreciation
Total capital assets being
depreciated, net
Total governmental funds
capital assets, net
$
Internal service funds
depreciated:
Other improvements
Total internal service
assets being depreciated
Other improvements
Total internal services funds
capital assets, net
Governmental activities
capital assets, net
Increases
Ending
Balance
Transfers
48,557,117
15,148,762
439,675
11,270,740
(142,075)
222,245
(12,296,495)
63,705,879
11,710,415
(142,075)
(12,074,250)
63,199,969
335,232,709
72,104,908
24,206,426
25,724,148
2,117,514
873,333
(9,725)
11,145,502
(29,651)
291,220
667,179
348,495,725
72,075,257
24,497,646
27,254,935
457,268,191
2,990,847
(9,725)
12,074,250
472,323,563
(139,143,478)
(22,896,186)
(8,518,393)
(19,868,660)
(190,426,717)
(11,621,695)
(2,138,983)
(2,025,005)
(1,408,669)
(17,194,352)
9,725
9,725
266,841,474
(14,203,505)
-
330,547,353
(2,493,090)
(142,075)
-
327,912,188
274,272
24,706,564
1,414,907
(588,929)
-
274,272
25,532,542
24,980,836
1,414,907
(588,929)
-
25,806,814
(99,383)
(18,942,302)
(19,041,685)
(20,125)
(1,866,864)
(1,886,989)
569,351
569,351
-
(119,508)
(20,239,815)
(20,359,323)
(19,578)
-
5,447,491
5,939,151
$
Decreases
336,486,504
(472,082)
$
(2,965,172)
60
$
(161,653)
$
-
(150,765,173)
(25,035,169)
(10,543,398)
(21,267,604)
(207,611,344)
12,074,250
$
49,219,037
13,980,932
-
264,712,219
$
333,359,679
SEPTEMBER 30, 2013
Beginning
Balance
Busine ss-type activities:
Capital assets, not being
depreciated:
Land
Total capital assets, not
being depreciated
$
2,368,892
25,903,371
Increases
$
8,317,323
Decreases
$
-
Ending
Balance
Transfers
$
(21,316,426)
$
2,368,892
12,904,268
28,272,263
8,317,323
-
(21,316,426)
15,273,160
depreciated:
Land improvements
Buildings
Other improvements
Water system
Sewer system
being depreciated
106,700
1,131,504
658,008
140,191,934
100,766,762
4,224,505
505,604
158,333
224,474
-
19,098,943
2,104,791
112,692
106,700
1,131,504
658,008
159,796,481
103,029,886
4,561,671
247,079,413
888,411
-
21,316,426
269,284,250
Land improvements
Buildings
Other improvements
Water system
Sewer system
(78,352)
(385,691)
(185,979)
(40,800,608)
(33,107,151)
(3,259,312)
(77,817,093)
Business-type activities
capital assets, net
Total capital assets being
depreciated, net
Total capital assets, net
$
169,262,320
197,534,583
(2,379)
(28,846)
(43,394)
(3,194,186)
(2,079,710)
(326,060)
(5,674,575)
$
(4,786,164)
3,531,159
-
$
-
-
$
(80,731)
(414,537)
(229,373)
(43,994,794)
(35,186,861)
(3,585,372)
(83,491,668)
21,316,426
-
$
185,792,582
201,065,742
Depreciation expense was charged to functions/programs of the primary government as follows:
General government
Finance
Community relations/tourism
Human resources
Municipal court
Information technology
Police
Fire
Public works
Parks and leisure
Community development
Internal service funds
Total depreciation expense - governmental activities
Business-type activities:
Water and sewer
61
$
$
2,305,218
3,851
120,572
719
8,697
194,631
708,805
322,887
10,287,864
3,049,860
191,248
1,886,989
19,081,341
$
5,674,575
SEPTEMBER 30, 2013
Outstanding commitments at September 30, 2013 under authorized construction contracts were
approximately $7.0 million. These outstanding commitments are to be financed by available
cash and investment balances, which include proceeds from previous bond issuances.
6. EMPLOYEE RETIREMENT PLAN
Plan Description
The City provides pension benefits for all its full-time employees through a non-traditional, joint
contributory, hybrid defined benefit plan in the state-wide 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 statues
of TMRS.
Upon retirement, benefits depend upon the sum of the employee’s contributions, with interest,
and the City-financed monetary credits, with interest. City-financed monetary credits are
composed of three sources: prior service credits, current service credits, and updated service
credits. At the inception of the City’s plan, the City granted monetary credits for service
rendered before the plan began (or prior service credits) of a theoretical amount at least equal to
two times what would have been contributed by the employee, with interest (3% annual), prior to
establishment of the plan. Monetary credits for service since the plan began (or current service
credits) are 200% of the employee’s accumulated contributions. In addition, the City has granted
on an annually repeating basis another type of monetary credit referred to as an updated service
credit. The updated service credit is calculated by taking the difference between this
hypothetical account balance and the actual reserve balance. It is then increased by 3% each
year, not the actual interest credited to member accounts in previous years, and increased by the
City 2 to 1 match currently in effect. The resulting sum is then multiplied by 75% and compared
to the member’s prior year updated service credit balance increased by the actual City match and
actual interest credited. If the hypothetical calculation exceeds the actual calculation, the
member is granted a monetary credit (or updated service credit) equal to the difference between
the hypothetical calculation and the actual calculation. At retirement, the benefit is calculated as
if the sum of the employee’s contributions with interest and the City-financed monetary credits
with interest were used to purchase an annuity.
Members may choose to receive their retirement benefit in one of seven payment options: retiree
life only; one of three lifetime survivor options; or one of three guaranteed term options.
Members may also choose to receive a portion of their benefit as a Partial Lump Sum
distribution (PLSD) in an amount equal to 12, 24, or 36 monthly payments under the retiree life
only option, which cannot exceed 75% of the total member deposits and interest.
62
SEPTEMBER 30, 2013
The City elected to increase the annuities (annuity increases) of its retirees, either annually or on
an annually repeating basis, effective January 1 of a calendar year. The City has adopted annuity
increases at the rate of 70% of the increase (if any) in the Consumer Price Index—all Urban
Consumers (CPI-U) between the December preceding the member’s retirement date and the
December one year before the effective date of the increase, minus any previously granted
increases.
A member is vested after five years and can retire at age 60 and above with five or more years of
service or at any age with 20 years of service. The plan provisions are adopted by the governing
body of the City, within the options available in the state statutes governing TMRS and within
the actuarial constraints also in the statutes.
Contributions
The contribution rate for employees is 7% of employee gross earnings and the City’s matching
ratio is currently 2 to 1, both as adopted by the governing body of the City. Under the state law
governing TMRS, the contribution rate for each city is determined annually by the actuary, using
the Projected Unit Credit actuarial cost method (effective with the December 31, 2007 actuarial
valuation). 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 finances the portion of an active member’s projected benefit
allocated annually; the prior service contribution rate amortizes the unfunded (overfunded)
actuarial liability (asset) over the applicable period for the 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. Contributions are made
monthly by both the employees and the City. Since the City must 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 (i.e.
December 31, 2012 valuation is effective for rates beginning January 2014).
63
SEPTEMBER 30, 2013
The annual pension costs and net pension obligation is as follows:
Net Pension Obligation
FY 2012-13
Annual required contribution (ARC)
Interest on net pension obligation
Adjustment to the ARC
Annual pension costs (APC)
Contributions made
Increase (decrease) in net pension obligation
Net pension obligation, beginning of year
Net pension obligation, end of year
Actuarial valuation date
$
FY 2011-12
7,552,936
433,870
(379,131)
7,607,675
(7,459,191)
148,484
6,198,140
6,346,624
$
$
$
FY 2010-11
7,838,904
382,287
(309,105)
7,912,086
(6,811,107)
1,100,979
5,097,161
6,198,140
Three-Year Trend Information
FY 2012-13
FY 2011-12
12/31/2012
12/31/2011
Annual pension cost (APC)
Actual contributions made
Percentage of APC contributed
$
$
7,607,675
7,459,191
98.0%
6,346,624
64
$
$
7,912,083
6,811,107
86.1%
6,198,140
$
$
8,535,905
249,810
(205,863)
8,579,852
(6,813,495)
1,766,357
3,330,804
5,097,161
FY 2010-11
12/31/2010
$
$
8,579,852
6,813,495
79.4%
5,097,161
SEPTEMBER 30, 2013
The required contribution rates for fiscal year 2013 were determined as part of the December 31,
2010 and 2011 actuarial valuations. Additional information as of the latest actuarial valuation,
December 31, 2012, also follows:
Valuation date
Schedule of Actuarial Assumptions and Valuations
FY 2012-13
FY 2011-12
12/31/2012
12/31/2011
FY 2010-11
12/31/2010
Actuarial cost method
Projected Unit Credit
Amortization method
Level Percent of
Payroll
Level Percent of
Payroll
Level Percent of
Payroll
Remaining amortization period
25.3 years; closed
period
26.2 years; closed
period
27.2 years; closed
period
30 years
30 years
30 years
10-year Smoothed
Market
10-year Smoothed
Market
10-year Smoothed
Market
Investment rate of return *
7.00%
7.00%
7.00%
Projected salary increases *
Varies by age and
service
Varies by age and
service
Varies by age and
service
2.10%
2.10%
2.10%
3.00%
3.00%
3.00%
Amortization Period for new Gains/Losses
Asset valuation method
Actuarial assumptions:
Cost-of-living adjustments
* Includes inflation at
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.
65
SEPTEMBER 30, 2013
The schedule of funding progress below 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.
Actuarial valuation date
Schedule of Actuarial Liabilities and Funding Progress
FY 2012-13
FY 2011-12
12/31/2012
12/31/2011
Actuarial value of assets
Actuarial accrued liability
Funded ratio
Unfunded actuarial accrued liability (UAAL)
Annual covered payroll
UAAL as a percentage of covered payroll
$
172,168,275
211,137,970
81.5%
38,969,695
40,454,089
96.3%
$
157,296,848
198,973,790
79.1%
41,676,942
39,830,706
104.6%
FY 2010-11
12/31/2010
$
144,080,655
191,546,520
75.2%
47,465,865
39,819,534
119.2%
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 by writing to TMRS, P.O. Box 149153, Austin, TX
78714-9153 or by calling 800-924-8677. In addition, the report is available on TMRS’ website
at www.TMRS.com.
7. COMMITMENTS AND CONTINGENCIES
Water Contract
The City purchases all of its raw water from the City of Dallas. The raw water rate for this
contract during the fiscal year was $0.4587 per 1,000 gallons. The City of Dallas reserves the
right and power during the term of this contract to set reasonable revised rates from time to time.
Legal
The City is a defendant in various lawsuits. Although the outcome of these lawsuits is presently
not determinable, it is the opinion of the City’s attorney that the resolution of these matters will
not have a materially adverse effect on the financial condition of the City.
Grant Audit
The City receives federal and state grants for specific purposes that are subject to review and
audit by federal and state agencies. Such audits could result in a request for reimbursement by
the federal and state agencies for expenditures disallowed under the terms and conditions of the
appropriate agreement. In the opinion of City management, such disallowances, if any, will not
be significant to the City’s financial position.
66
SEPTEMBER 30, 2013
8. OTHER POST EMPLOYMENT BENEFITS
The City provides a $15,000 fully paid life insurance policy upon retirement with ten years of
service with the City of Lewisville. The City pays 100 percent of the premium cost for the life
insurance policy. Expenditures for this benefit are recognized as employees retire and the
insurance policy is purchased. The City recognized expenditures of $114,600 for the year ended
September 30, 2013 to purchase life insurance policies for sixteen eligible retirees.
Lewisville OPEB Liability Trust Fund
The City established an irrevocable trust in 2008 for the systematic funding of post-employment
health benefits as a single-employer, defined benefit plan. Plan assets may be used only for the
payment or reimbursement of benefits provided to retirees, in accordance with the terms of the
plan.
Summary of Significant Accounting Policies
Financial statements are prepared using the accrual basis of accounting. Plan member
contributions are recognized when due. The City’s contributions are recognized when due and
the City has made a formal commitment to provide the contributions. Benefits and refunds are
recognized when due and payable in accordance with the terms of the plan. Investments are
reported at fair value.
Plan Descriptions and Contribution Information
The City provides comprehensive group medical benefits for employees at retirement who meet
the eligibility requirements for postretirement benefits. Eligibility requirements are (1) age 60
and 5 years of service with the City, or (2) 20 years of service with Texas Municipal Retirement
System, the City’s pension provider. Election must be made at time of retirement to remain in
the plan. Continuation of coverage is subject to the payment of required contributions by
participating retirees and dependents. The City contributes a fixed amount toward each retiree’s
monthly premium, based on the tenure with the City. The City’s substantive plan places a zero
percent (0%) cap on future contribution increases. The employee remains on the plan until age
65 when they are moved to a fully insured Medicare supplement plan. The City contributes a flat
$50 per month toward the retiree’s fully insured premium.
Membership of the plan consists of the following at October 1, 2012, the date of the latest
actuarial valuation:
Number of retirees and beneficiaries receiving benefits
Active plan members
67
79
631
SEPTEMBER 30, 2013
Funding Status and Funding Progress
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality, and the health care cost trend. Actuarially
determined amounts are subject to continual revision as actual results are compared with past
expectations and new estimates are made about the future.
The schedule of funding progress presents multiyear trend information about whether the
actuarial values of plan assets are increasing or decreasing over time relative to the actuarial
accrued liabilities for benefits.
Schedule of Funding Status and Funding Progress
Actuarial Valuation Date
10/1/2012
10/1/2011
Actuarial Value of Assets
$
3,333,200
$
2,738,100
Actuarial Accrued Liability (AAL)
4,787,900
5,118,100
Unfunded AAL (UAAL)
1,454,700
2,380,000
Funded Ratio
69.6%
53.5%
Fiscal Year Covered Payroll
$
40,159,835
$ 41,107,984
UAAL as a Percentage of Covered Payroll
3.6%
5.8%
$
$
10/1/2010
2,637,000
4,732,000
2,095,000
55.7%
39,581,047
5.3%
The schedule of employer contributions present trend information about the amounts contributed
to the plan by the City in comparison to the ARC, an amount that is actuarially determined in
accordance with the parameters of GASB Statement 43. The ARC represents a level of funding
that, if paid on an ongoing basis, is projected to cover normal cost for each year and amortize any
unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years.
Schedule of Employer Contributions and Net OPEB Obligation
Contribution Year
Annual Required Contribution
Interest on net OPEB obligation
Adjustment to annual required contribution
Annual OPEB cost
Contributions made
Change in OPEB obligation
Net OPEB obligation (asset), beginning of year
Net OPEB obligation (asset), end of year
$
$
$
$
Percentage of annual OPEB cost contributed
9/30/2013
366,600
366,600
366,600
100.0%
$
$
$
$
9/30/2012
359,300
359,300
359,300
100.0%
$
$
$
$
9/30/2011
494,600
494,600
494,600
100.0%
Projections of benefits for financial reporting purposes are based on the substantive plan (the
plan as understood by the employer and plan members) and include the types of benefits
provided at the time of each valuation and the historical pattern of sharing of benefit costs
between the employer and plan members to that point.
68
SEPTEMBER 30, 2013
The actuarial methods and assumptions used include techniques that are designed to reduce the
effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets
consistent with the long-term perspectives of the calculations.
Schedule of Actuarial Assumptions and Valuations
Valuation date
Actuarial cost method
Amortization method
Amortization period
Asset valuation method
Actuarial assumptions:
Investment rate of return
General inflation
10/1/2012
Level dollar, open
30 years
Market
10/1/2011
Level dollar, open
30 years
Market
10/1/2010
Level dollar, open
30 years
Market
7.50%
3.00%
7.50%
3.00%
7.50%
3.00%
Healthcare cost trend rate is assumed to be greater than 3.0% annually, however is not applicable
for purposes of this valuation, since the City’s future costs are set at a fixed amount.
The Lewisville OPEB Liability Trust Fund does not issue a separate financial report. Additional
information can be found in the Agency and Trust Funds section of this report.
9. COMPONENTS OF RESTRICTED ASSETS
Restricted assets reported in the Enterprise Funds statement of net position at September 30,
2013 are comprised of the following:
Deposits
Money held in escrow
Revenue bond current debt service accounts
Revenue bond future debt service accounts
Revenue bond construction accounts
Total
$
1,489,877
30,583
3,430,343
3,659,601
36,651,560
$
45,261,964
The related liabilities payable from restricted assets at September 30, 2013 are as follows:
Deposits payable
Escrow payable
$
1,489,877
30,624
261,641
733,297
5,140,000
Total
$
7,655,439
The ordinance authorizing the Waterworks and Sewer System Revenue Bonds requires that the
City establish a sinking fund (recorded in the revenue bond current debt service accounts) in an
amount not less than the amount required to fully pay principal and interest payments as they
come due.
69
SEPTEMBER 30, 2013
In addition, the ordinance requires that the City establish a reserve fund (recorded in the revenue
bond future debt service accounts) to provide for payment of principal and interest in the event
that other funds available for such purposes are insufficient. At September 30, 2013, the
balances in both the sinking and reserve funds are sufficient to satisfy such bond ordinance
requirements.
The ordinance further requires that the proceeds from the sale of the Revenue Bonds be
expended for making improvements and extensions to the City’s combined waterworks and
sanitary sewer system. The proceeds are maintained in the revenue bond and capital projects
construction accounts until such time as needed to fund the construction program.
The amount of net position restricted for revenue bond retirements is detailed as follows:
Revenue bond current debt service accounts
Revenue bond future debt service accounts
$
$
3,430,343
3,659,601
7,089,944
Less:
$
261,641
5,140,000
5,401,641
Restricted for bond retirement
$
1,688,303
10. DEFERRED COMPENSATION PLAN
The City offers its employees a choice between two deferred compensation plans (the Plan)
created in accordance with Internal Revenue Code Section 457. One Plan is administered and
investments managed by Nationwide Retirement Solutions (NRS). The second Plan is
administered by AIG Valic. The assets and liabilities amounted to $26,886,475 for Nationwide
and $34,430,335 for AIG Valic at September 30, 2013. The plans include numerous types of
investments as participants elect how their salary deferrals are invested. Investment options
include the following: fixed annuities, variable annuities, and life insurance.
The Plans are available to all City employees and permit them to defer a portion of their salary
until future years. The deferred compensation is not available to employees until termination,
retirement, death, or an unforeseeable emergency.
All amounts of compensation deferred under the Plan, all property and rights purchased with
those amounts, and all income attributable to those amounts, property, or rights are held in trust
for the exclusive benefit of the participants and their beneficiaries.
70
SEPTEMBER 30, 2013
It is the opinion of the City’s management that the City has no liability for those losses under the
Plan but does have the duty of due care that would be required of an ordinary prudent investor.
The City provides limited administrative duties.
In accordance with GASB Statement No. 32, the deferred compensation plans are not included in
the financial statements of the City.
11. LONG TERM LIABILITIES
General Obligation Bonds
General Obligation Bonds are direct obligations and pledge the full faith and credit of the City.
Bonds generally are issued as 16-year serial bonds, except for refunding issues, with level debt
service requirements each year. General Obligation Bonds outstanding as of September 30, 2013
are as follows:
Purpose
General Government
Interest Rates
1.50% - 5.00%
Governmental
Activities
Amount
$
75,555,000
Business-Type
Activities
Amount
$
3,955,000
Certificates of Obligation
Certificates of Obligation are direct obligations of the City, payable from a combination of ad
valorem taxes and a limited pledge of surplus revenues of the City’s waterworks and sewer
system. Certificates of Obligation outstanding as of September 30, 2013 are as follows:
Purpose
Park and Library Improvements
Arts Activity Center and Improvements
Interest Rates
4.00% - 5.00%
4.00% - 5.00%
Total
Governmental
Activities
Amount
$
16,390,000
$
7,575,000
$
71
23,965,000
SEPTEMBER 30, 2013
Annual debt service requirements to maturity for Government Activities General Obligation
Bonds and Certificates of Obligation, including interest of $30,173,150 are as follows:
Year Ended
September 30
2014
2015
2016
2017
2018
2019-2023
2024-2028
2029-2032
Principal
Interest
Total
$
7,130,000
7,425,000
7,810,000
7,645,000
7,720,000
36,125,000
20,145,000
5,520,000
$
4,107,824
3,736,773
3,402,094
3,070,783
2,766,762
9,359,131
3,278,958
451,025
$
11,237,824
11,161,773
11,212,094
10,715,783
10,486,762
45,484,131
23,423,958
5,971,025
$
99,520,000
$
30,173,350
$
129,693,350
During the year, the City issued $12,455,000 of General Obligation Bonds, Series 2013.
Proceeds from the sale of the bonds will be used to provide funds for constructing improvements
to the City’s streets, sidewalks, and related drainage improvements.
Revenue Bonds
The City also issues bonds where the City pledges income derived from acquired or constructed
assets to pay debt service. Revenue Bonds outstanding, at September 30, 2013, are as follows:
Purpose
Water supply and waste water treatment
Less-Current maturities payable from restricted assets
72
Interest Rates
1.00% - 5.00%
Amount
$
46,050,000
5,140,000
$
40,910,000
SEPTEMBER 30, 2013
Annual debt service requirements to maturity, for Business-type Activities Revenue Bonds and
General Obligation Bonds, including interest of $11,208,876 are as follows:
Year Ended
September 30
2014
2015
2016
2017
2018
2019-2023
2024-2028
2029
Interest
Principal
Total
$
5,140,000
4,970,000
4,930,000
4,460,000
4,625,000
16,630,000
8,820,000
430,000
$
1,808,775
1,594,938
1,404,955
1,230,945
1,065,739
3,312,809
779,965
10,750
$
6,948,775
6,564,938
6,334,955
5,690,945
5,690,739
19,942,809
9,599,965
440,750
$
50,005,000
$
11,208,876
$
61,213,876
There are a number of limitations and restrictions contained in the various bond indentures. As
of September 30, 2013, the City was in compliance with all limitations and restrictions.
During the year, the City issued $5,205,000 of Waterworks and Sewer System Revenue Bonds,
Series 2013. Proceeds from the sale of the bonds will be used for the purpose of constructing,
acquiring, and installing improvements, additions and extensions to the City’s waterworks and
sewer system.
In previous years, the City has defeased certain general obligation, certificates of obligation, and
revenue bonds by placing funds into an irrevocable trust to provide for all future debt service
payments on the old bonds. Accordingly, the trust account assets and liability for the defeased
bonds are not included in the City’s financial statements. At September 30, 2013, $3,160,000 of
outstanding general obligation bonds and $13,085,000 of certificates of obligations are
considered defeased.
73
SEPTEMBER 30, 2013
Changes in Long-Term Liabilities
Long-term liability activity for the year ended September 30, 2013 was as follows:
Beginning
Balance
Bonds payable and
Certificates of obligation
Less deferred amount on
refunding
Premium
long-term liabilities
Business type activities:
Bonds payable
Less deferred amount
on refunding
Premium
Discount
Business type activities
long-term liabilities
$
Additions
$ 12,455,000
(726,214)
2,161,421
7,150,006
5,477,154
1,276,220
4,848,156
132,151
82,465
(231,545)
(4,505,961)
-
$ 18,711,527
$ (11,675,041)
$
115,183,853
$
12,060,061
$
$
$
50,005,000
$
5,140,000
108,147,367
$
50,115,000
(392,802)
1,156,801
(68,559)
794,706
673,071
52,278,217
5,205,000
$
481,262
451,333
14,848
$
6,152,443
(7,020,000)
(5,315,000)
$
(5,859,642)
$
(643,749)
3,206,096
7,492,201
5,609,305
45,535
(127,275)
6,268
(469,170)
$
99,520,000
Due Within
One Year
94,085,000
$
$
Ending
Balance
Reductions
4,930,061
-
(347,267)
1,510,788
(62,291)
776,869
687,919
$
52,571,018
7,130,000
433,595
$
5,573,595
In general, the General fund has been used in prior years to liquidate other long-term liabilities
for the governmental activities of the City.
Component Unit Bonded Indebtedness
On September 14, 2002 voters approved the imposition of an additional sales and use tax of onequarter of one (0.25%) percent for parks and library purposes. The tax became effective on
January 1, 2003 and collections began in March 2003. The sales tax is collected solely for the
benefit of the Lewisville Parks and Library Development Corporation (a non-profit corporation)
established by the City to administer sales tax collections and projects.
Proceeds of Certificates of Obligation issued by the City in 2004 were utilized to finance the
construction of park facilities and library improvements. Certificates of Obligation issued by the
City in 2007 for the Lewisville Parks and Library Development Corporation and the Tax
Increment Reinvestment Zone Number 1 (TIRZ, also known as Old Town) component units
were utilized for constructing an athletic complex, an arts activity center, parking lot and related
improvements.
74
SEPTEMBER 30, 2013
Note Payable to Primary Government / Note Receivable From Component Unit
The Lewisville Parks and Library Development Corporation (“LPLDC”) has entered into an
agreement with the City to reimburse the City for annual debt service costs associated with the
Series 2004 and Series 2007A Combination Tax and Revenue Certificates of Obligation. In
addition, the LPLDC entered into an additional agreement to repay $12,490,000 advanced to the
LPLDC in 2012 to defease certain previously issued certificates of obligation. The Tax
Increment Reinvestment Zone (“TIRZ”) has entered into an agreement with the City to
reimburse the City for annual debt service costs associated with the Series 2007B Combination
Tax and Revenue Certificates of Obligation. The outstanding obligations as of September 30,
2013, $28,880,000 and $7,575,000, respectively, have been recorded as a non-current liability of
the LPLDC and TIRZ and as a non-current asset of the governmental activities in the statement
of net position.
Annual debt service requirements on the aforementioned Note Payable for the LPLDC are as
follows:
Year Ended
September 30
2014
2015
2016
2017
2018
2019-2023
2024-2028
2029-2032
Principal
LPLDC - Note Payable
Interest
Total
$
1,525,000
1,590,000
1,655,000
1,725,000
1,795,000
10,160,000
5,965,000
4,465,000
$
1,218,259
1,149,834
1,080,659
1,010,159
939,759
3,524,013
1,666,919
424,650
$
2,743,259
2,739,834
2,735,659
2,735,159
2,734,759
13,684,013
7,631,919
4,889,650
$
28,880,000
$
11,014,252
$
39,894,252
Annual debt service requirements on the aforementioned Note Payable for the TIRZ are as
follows:
Year Ended
September 30
2014
Principal
$
2015
2016
2017
2018
2019-2023
2024-2028
TIRZ - Note Payable
Interest
205,000
$
245,000
295,000
330,000
380,000
2,715,000
3,405,000
$
334,941
Total
$
324,816
312,666
298,604
283,579
1,118,990
351,547
7,575,000
$
75
3,025,143
539,941
569,816
607,666
628,604
663,579
3,833,990
3,756,547
$
10,600,143
SEPTEMBER 30, 2013
A summary of changes in discretely presented component unit long-term debt follows:
Beginning
Balance
LPLDC activities:
Notes payable:
Notes payable to Primary Government
Premium
Less deferred amount on
refunding
LPLDC activites total:
TIRZ activities:
Notes payable:
Notes payable to Primary Government
Premium
TIRZ activities total:
Component unit long-term liabilities
$ 30,325,000
1,747,044
Additions
$
-
(980,042)
31,807
47,915
31,171,724
41,521
1,485
43,006
7,740,000
15,692
7,755,692
-
$ 38,927,416
$
43,006
Ending
Balance
Reductions
$ (1,445,000)
(148,744)
$
83,715
(45,488)
(1,555,517)
$
(896,327)
27,840
49,400
29,659,213
(165,000)
(1,066)
(166,066)
$ (1,721,583)
28,880,000
1,598,300
Due Within
One Year
1,525,000
18,319
1,543,319
7,575,000
14,626
7,589,626
$
37,248,839
205,000
205,000
$
1,748,319
Bonded Indebtedness of Which the City Has No Liability
In addition to the outstanding General Obligation Bonds and Certificates of Obligation of the
City and the Water and Sewer System Revenue Bonds, all of which are included in the financial
statements of the City, the City is the Issuer of the following Public Improvement Bond issues:
$19,000,000 City of Lewisville, Texas Combination Contract Revenue and Special
Assessment Refunding and Capital Improvement Bonds, Series 1998
Assessment Capital Improvement Bonds, Series 2005
Assessment Capital Improvement Bonds, Series 2008
Assessment Refunding and Utility System Bonds, Series 2011
Assessment Utility System Bonds, Series 2011
76
SEPTEMBER 30, 2013
Assessment Road System Bonds, Series 2011
Assessment Refunding Bonds, Series 2013
These issues are not direct obligations of the City of Lewisville. They are Revenue Bonds issued
for the Castle Hills Public Improvement District located in the City’s extraterritorial jurisdiction.
For all issues except the 2008 bond issue, the principal and interest payment on the bonds is from
ad valorem taxes (contract revenues, billed and collected by the Denton County Fresh Water
District). For the 2008 bond issue, no more than 90% of the principal and interest payment on
the bonds is from ad valorem taxes (contract revenues) and no less than 10% is payable from
special assessment revenues and subject to special mandatory redemption prior to maturity.
In the event contract revenues were ever insufficient to pay principal and interest, the City would
levy and collect special assessments from property owners in the public improvement district.
At September 30, 2013, City of Lewisville, Texas Contract Revenue and Special Assessment
Improvement Bonds outstanding aggregated was $90,395,000.
12. RISK MANAGEMENT
The City established a limited risk management program for workers’ compensation and
healthcare coverage in 1988. Beginning September 1, 1990, liability and property and casualty
risk funding was established within the Self-Insurance Internal Service Fund. Life, accidental
death and dismemberment and long-term disability coverage are fully insured but accounted for
within the fund. Premiums are transferred into the Self-Insurance Internal Service Fund from all
other operating funds and are available to pay claims, claim reserves, reinsurance excess
coverage premiums, and any other premiums or administrative costs associated with the
programs. During FY 2012-13, a total of $1,124,841 was paid in life insurance and long-term
disability premiums, reinsurance premiums, and administrative costs for workers’ compensation,
liability, and property/casualty claims. Workers’ compensation liabilities include the reserve for
unpaid claims and a calculated reserve for incurred but not reported claims. The workers’
compensation reinsurance provided excess coverage of $500,000 per occurrence for all positions.
Settled claims have not exceeded this commercial coverage in any of the past several years. In
July 1999, the property and casualty and liability insurance coverages were moved to a
deductible program. Each line of coverage has a deductible per occurrence ranging from
$500-$50,000.
77
SEPTEMBER 30, 2013
During FY 2001-02, the City established a Health Insurance Risk Pool under Chapter 172 of the
Texas Local Government Code. Since the establishment of the Risk Pool, premiums for
healthcare have been transferred into the Risk Pool from all other operating funds and are
available to pay claims, claim reserves, reinsurance excess coverage premiums, and the
administrative costs of the medical/dental plan. For the plan year beginning October 1, 2012, the
healthcare reinsurance provided excess coverage (beyond $135,000 per occurrence) and an
annual aggregate stop loss of approximately $5,937,988 per plan year limit. The healthcare
liabilities include the reserve for unpaid claims and a calculated reserve for incurred but not
reported claims. During FY 2012-13, total expenses for claims, reinsurance premiums, and
administrative costs for healthcare amounted to $7,724,072 .
Claims expenditures and liabilities are reported when it is probable that a loss has occurred and
the amount of that loss can be reasonably estimated. These losses include an estimate of claims
that have been incurred but not reported. Because actual claims liabilities depend on such
complex factors as inflation, changes in legal doctrines, and damage awards, the process used in
computing claims liability does not necessarily result in an exact amount. Claims liabilities are
re-evaluated annually by an outside actuary who takes into consideration recently settled claims,
the frequency of claims, and other economic and social factors.
Changes in the balances of claims liabilities for the years ended September 30, 2013 and 2012
are as follows:
2013
2012
Claims payable, beginning of year
Incurred claims
Claims payments
$
1,208,652
7,255,213
(7,145,071)
$
1,348,807
7,205,588
(7,345,743)
Claims payable, end of year
$
1,318,794
$
1,208,652
78
SEPTEMBER 30, 2013
13. FUND BALANCE CLASSIFICATIONS
The following fund balance classifications describe the relative strength of the spending
constraints placed on the purposes for which resources can be used:
• Non Spendable Fund Balance
This represents the portion of fund balance that is not in a spendable form (such as
inventory or prepaid items) or is required to be maintained intact pursuant to legal or
contractual requirements.
• Restricted Fund Balance
This represents the portion of fund balance that is subject to externally enforceable legal
restrictions. These restrictions are typically imposed by parties outside the government
such as grantors, creditors, or other government entities through laws and regulations.
• Committed Fund Balance
This represents the portion of fund balance that is constrained by limitations that the
governing body imposed upon itself at the highest level of decision making (City
Council) and remains binding unless removed in the same manner. Any changes must
take place before the end of the reporting period.
• Assigned Fund Balance
This portion of fund balance reflects the government’s intended use of resources. Such
intent must presently be established at the highest level of decision making (Council
vote), with the exception of the employee benevolent fund. The authority to assign
benevolent fund balance has been granted to the employee committees via Administrative
Directive 1.7.0. Amounts in excess of non-spendable, restricted, and committed fund
balance in funds other than the General Fund would automatically be assigned here.
• Unassigned Fund Balance
Only the General Fund can have a positive “unassigned” fund balance. This balance
represents any residual which has not been classified within the other above mentioned
categories. Unassigned fund balance may also include negative balances for any
governmental fund if expenditures exceed amounts restricted, committed, or assigned for
those specific purposes.
79
SEPTEMBER 30, 2013
The following is a detailed schedule of Governmental Fund Balances as of September 30, 2013.
GOVERNMENTAL FUNDS
General
Debt
Capital
Other
Service
Projects
Governmental
Fund
Fund
Funds
General
Fund
FUND BALANCE:
Non Spendable:
Prepaid expenses
$
Spendable:
Restricted for:
Debt service
Capital projects - Streets
Capital projects - Drainage
Capital projects - Other
Hotel/Motel Tax Fund
Grant Funds
Public Improvement District Fund
Municipal Court Security Fund
Municipal Court Technology Fund
Police Forfeitures Fund (State)
Police Forfeitures Fund (Federal)
Juvenile Case Manager Fund
PEG Programming Fund
Crime Control & Prenvention District
Fire Control, Prevention, and Emergency
Medical Services District
Castle Hills Capital Projects
Total Restricted
Committed to:
Capital projects - Parks
Recreation Fund
Fire and Police Training Fund
Donations Fund
Lewisville Local Government
Corporation
Total Committed
Assigned to:
Capital projects - Riverside Road & Bridge
Other
Employee Benevolent Fund
Total Assigned
Unassigned:
TOTAL FUND BALANCES:
381,982
$
$
-
$
2,265,652
$
2,647,634
-
1,622,886
-
18,134,430
4,732,527
8,982,565
-
3,723,249
65,257
234,473
72,233
183,734
165,534
677,802
95,000
229,197
1,365,271
1,622,886
18,134,430
4,732,527
8,982,565
3,723,249
65,257
234,473
72,233
183,734
165,534
677,802
95,000
229,197
1,365,271
-
1,622,886
31,849,522
2,677,160
50,541
9,539,451 *
2,677,160
50,541
43,011,859
-
-
2,916,568
395,724
3,068,058
-
279,131
154,219
246,308
-
-
6,380,350
5,066
684,724
2,916,568
395,724
3,068,058
279,131
154,219
246,308
5,066
7,065,074
-
2,231,995
1,954,153
2,953,290
7,139,438
-
26,580
26,580
-
2,231,995
1,954,153
2,953,290
538,290
26,580
7,704,308
30,571,006
538,290
538,290
30,571,006
$
-
Total
Governmental
Funds
31,491,278
$
1,622,886
$
45,369,310
*NOTE: These restrictions are also reflected as restrictions of net position on the Statement of Net Position.
80
$
12,516,407
$
90,999,881
REQUIRED
SUPPLEMENTARY
INFORMATION
EXHIBIT A-1
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – BUDGET
(GAAP BASIS) AND ACTUAL
Budgeted Amounts
Original
Final
REVENUES:
Taxes
Recreation
Fines and forfeitures
Interest
Miscellaneous
Actual
Variance with
Final Budget
Positive
(Negative)
$ 2,907,142
747,586
352,347
3,506
32,473
(91,838)
156,512
$ 47,846,442
1,628,185
5,698,936
1,089,760
2,922,488
140,743
725,612
$ 47,846,442
1,628,185
5,698,936
1,089,760
2,922,488
140,743
725,612
$ 50,753,584
2,375,771
6,051,283
1,093,266
2,954,961
48,905
882,124
60,052,166
60,052,166
64,159,894
4,107,728
1,791,297
66,850
2,154,792
735,118
19,995,157
16,381,725
4,478,677
6,154,664
5,379,870
1,306,469
717,197
1,991,376
889,564
307,593
1,457,968
66,850
2,169,360
735,118
19,998,957
16,393,414
4,495,433
6,157,664
5,369,505
1,306,469
717,197
1,991,376
889,564
868,213
1,037,537
58,749
2,137,540
734,229
19,461,171
16,110,146
4,311,378
5,971,888
5,124,103
1,274,041
700,099
1,966,765
878,494
631,755
420,431
8,101
31,820
889
537,786
283,268
184,055
185,776
245,402
32,428
17,098
24,611
11,070
236,458
62,350,349
62,617,088
60,397,895
2,219,193
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
(2,298,183)
(2,564,922)
3,761,999
6,326,921
Transfers in
Transfers out
3,879,107
(5,041,145)
3,879,107
(7,586,208)
3,936,467
(7,280,035)
57,360
306,173
(1,162,038)
(3,707,101)
(3,343,568)
363,533
EXCESS (DEFICIENCY) OF REVENUES AND OTHER
FINANCING SOURCES OVER (UNDER) EXPENDITURES
AND OTHER FINANCING USES
(3,460,221)
(6,272,023)
FUND BALANCES, beginning
31,072,847
31,072,847
31,072,847
$ 27,612,626
$ $ 24,800,824
$ 31,491,278
Total revenues
EXPENDITURES:
General government
Mayor and council
Administrative and legal
Community relations and tourism
Police
Fire
Public services
Parks and leisure
Community development
Finance
Human resources
Information technology services
Municipal court
Capital outlay
Total expenditures
Total other financing sources (uses)
FUND BALANCES, ending
81
418,431
6,690,454
$ 6,690,454
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
SEPTEMBER 30, 2013
EXHIBIT A-2
BUDGET BASIS ACCOUNTING
The City adopts its budget of the General Fund on the modified accrual basis of accounting by
department
82
COMBINING AND
INDIVIDUAL FUND
STATEMENTS
AND SCHEDULES
MAJOR GOVERNMENTAL FUNDS
DEBT SERVICE FUND
The Debt Service Fund is used to account for the accumulation of resources for, and payment
of, general obligation and certificates of obligation principal, and interest indebtedness for
general governmental resources.
83
EXHIBIT B-1
DEBT SERVICE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – BUDGET
Budgeted Amounts
Original
Final
REVENUES:
Taxes
Intergovernmental
Investment earnings
Miscellaneous
$
Total revenues
7,648,012
9,842
228,189
$
Variance with
Final Budget
Positive
(Negative)
Actual
7,648,012
9,842
228,189
$
7,923,410
624,125
5,425
15,457
$
275,398
624,125
(4,417)
(212,732)
7,886,043
7,886,043
8,568,417
682,374
EXPENDITURES:
Debt servicePrincipal
6,350,000
3,134,038
6,350,000
3,134,038
5,410,000
2,942,234
940,000
191,804
Total expenditures
9,484,038
9,484,038
8,352,234
1,131,804
(1,597,995)
(1,597,995)
216,183
1,814,178
1,682,273
-
1,682,273
-
(50,000)
(1,682,273)
(50,000)
1,682,273
1,682,273
(50,000)
(1,732,273)
84,278
84,278
166,183
1,456,703
1,456,703
1,456,703
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES
Transfer in
Transfers out
NET CHANGE IN FUND BALANCES
$
1,540,981
84
$
1,540,981
$
1,622,886
81,905
$
81,905
NON-MAJOR GOVERNMENTAL FUNDS
Special Revenue funds are used to account for the proceeds of specific revenue sources (other
than major capital projects) that are legally or otherwise restricted to expenditures for particular
purposes. The City has fourteen Special Revenue Funds as follows:
HOTEL/MOTEL TAX FUND
To account for tax revenue collected as a percentage of gross receipts for all temporary room
rentals in all hotel and motel establishments within the City. Funds are expended to promote
tourism and culture in the City.
RECREATION ACTIVITY FUND
To account for revenues collected from recreation users for specific events. Funds are
expended on costs associated with the specific events’ operations.
GRANT FUND
To account for revenues derived from federal and state granting agencies. The funds are
expended for grant-related purposes.
PUBLIC IMPROVEMENT DISTRICT TAX FUND
To account for special revenue for an area-specific purpose. Funds are expended on costs
associated with the specified improvements.
MUNICIPAL COURT SECURITY FUND
To account for Municipal Court fees assessed to provide for court security.
MUNICIPAL COURT TECHNOLOGY FUND
To account for Municipal Court fees assessed to finance the purchase of technological
enhancements for Municipal Court.
POLICE ASSET FORFEITURE FUND
To account for funds received under the Controlled Substances Act of the State of Texas with
expenditures restricted to use solely in the investigation of any alleged violations of the criminal
laws of the state and donations for the same purpose.
EMPLOYEE BENEVOLENT FUND
To account for funds received from employee concessions with expenditures controlled by
employee committee.
FIRE AND POLICE TRAINING FUND
To allocate revenue from training tower rentals to ongoing maintenance of the facility as well as
police firearms simulator rentals and maintenance costs.
LAW ENFORCEMENT OFFICER STANDARDS AND EDUCATION FUND (LEOSE)
To account for grant revenue received from the Comptroller’s Office exclusively for the training
of police officers. Uses can include materials, classes, registration costs, etc.
85
NON-MAJOR GOVERNMENTAL FUNDS
DONATIONS FUND
To account for revenues derived from the solicitation and acceptance of donations. Funds are
expended for donation-related purposes only.
POLICE FEDERAL FORFEITURE FUND
To account for federally forfeited cash, property, proceeds, and any interest earned thereon
received as part of the Federal Equitable Sharing Agreement between local law enforcement
agencies, the Department of Justice, and the Department of Treasury for cooperating in
investigations with respect to asset forfeiture and money laundering investigations and
prosecutions.
JUVENILE CASE MANAGER FUND
To account for Municipal Court fees used to fund a portion of the juvenile case manager
position.
PEG PROGRAMMING FUND
To account for Public, Education and Government (PEG) programming fees received by cable
franchise entities used for capital costs associated with PEG production.
Additionally, three blended component units and one capital project fund are included as a NonMajor Governmental Funds:
LEWISVILLE LOCAL GOVERNMENT CORPORATION FUND
To account for assistance efforts in economic development initiatives.
LEWISVILLE CRIME CONTROL AND PREVENTION DISTRICT
To account for one-eighth cent sales tax revenues to fund crime control and prevention
programs.
LEWISVILLE FIRE CONTROL, PREVENTION, AND EMERGENCY MEDICAL
SERVICES DISTRICT
To account for one-eighth cent sales tax revenues to fund fire safety and emergency medical
service programs.
CASTLE HILLS PUBLIC IMPROVEMENT DISTRICT CAPITAL PROJECTS FUND
To account for acquisition and construction of major capital facilities financed by the Castle Hills
Public Improvement District.
86
NON MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 2013
Special Revenues
Hotel/Motel
Tax
ASSETS
Cash
Investments
Receivables:
Taxes
Accounts
Interest
Prepaid items
Total assets
$
523,891
2,979,350
Recreation
Activity
$
301,946
2,562
2,259,047
44,373
252,353
Public
Improvement
District
Grant
$
12,500
211
1,088
2,688
15,273
$
35,787
203,517
303,547
13
1,155
Municipal
Court
Security
$
169
-
10,891
61,935
Municipal
Court
Technology
$
51
-
29,784
153,804
Police
Asset
Forfeiture
$
146
-
$
6,066,796
$
310,525
$
322,676
$
239,473
$
72,877
$
$
70,638
13,862
-
$
17,555
251
12,500
$
2,751
7,642
238,910
6,961
$
5,000
-
$
644
-
$
$
5,000
644
234,473
-
72,233
-
183,734
67,700
136,320
Fire and
Police
Training
Employee
Benevolent
$
1,608
113
-
3,979
22,635
$
-
23,256
132,245
109
-
21
-
$
205,741
$
26,635
$
155,610
$
40,207
-
$
55
-
$
1,391
-
LIABILITIES AND FUND BALANCES
LIABILITIES:
Accrued liabilities
Due to other funds
Deposits
Deferred revenue
Total liabilities
FUND BALANCES
Nonspendable
Restricted
Committed
Assigned
30,306
256,264
2,259,047
3,723,249
-
1,088
279,131
1,155
65,257
-
-
Total fund balances
Total liabilities and fund balances
84,500
-
5,982,296
$
6,066,796
-
280,219
$
310,525
-
66,412
$
322,676
$
239,473
87
-
72,877
183,734
205,741
154,219
26,580
165,534
$
1,391
-
-
183,734
$
55
165,534
-
-
72,233
$
40,207
183,734
-
-
234,473
-
-
26,580
$
26,635
154,219
$
155,610
EXHIBIT C-1
LEOSE
$
Police
Federal
Forfeiture
Donations
-
$
-
37,520
213,390
$
11,031
156
-
-
$
262,097
$
$
-
$
390
713
5,485
9,201
$
15,789
-
246,308
-
-
262,097
-
$
68,526
115
-
-
757
4,305
$
-
143,086
813,726
$
460,708
674
471
4
-
333,206
1,894,931
Castle
Hills (PID)
Capital
Projects
$
464,247
1,426
3,891
122,795
-
Total
Non-Major
Governmental
Funds
$
-
1,519,624
7,679,456
924,955
699,158
6,315
2,265,652
96,415
$
230,552
$
5,066
$
1,418,665
$
2,697,701
$
122,795
$
13,095,160
$
44
1,371
-
$
1,355
-
$
-
$
4,518
48,405
-
$
4,279
12,371
-
$
72,254
-
$
1,415
1,355
95,000
-
229,197
-
-
677,802
677,802
24,213
137,698
Fire Control
Prevention and
Emergency
Medical Services
$
-
$
$
68
677,802
-
246,308
$
677,802
14,408
81,939
Crime Control
and
Prevention
District
Lewisville Local
Government
Corporation
PEG
Programming
-
-
-
$
$
477
-
$
-
101,290
576,035
Juveline
Case
Manager
96,415
5,066
-
95,000
$
-
-
229,197
$
230,552
88
5,066
52,923
16,650
72,254
578,753
471
1,365,271
-
3,891
2,677,160
-
50,541
-
2,265,652
9,539,451
684,724
-
5,066
$
-
221,081
84,615
238,910
5,485
28,662
-
1,365,742
$
1,418,665
-
2,681,051
$
2,697,701
26,580
50,541
$
122,795
12,516,407
$
13,095,160
NON MAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES
Special Revenues
Hotel/Motel
Tax
REVENUES:
Taxes
Recreation
Investment earnings
Grants
Public safety
Public services
Contributions from property owners
Miscellaneous
$
Total revenues
EXPENDITURES:
CurrentGeneral government
Public safety
Public services
Capital outlay
Total expenditures
Transfers in
Transfers out
$
$
$
387
127,570
515,834
945,453
-
2,132,829
415,820
1,558,434
-
$
15,173
426
Municipal
Court
Security
$
108
Municipal
Court
Technology
$
325
Police
Asset
Forfeiture
$
249
Fire and
Police
Training
Employee
Benevolent
$
41
$
253
-
59,503
79,343
66,097
4,190
88,326
1,461,674
15,599
59,611
79,668
66,346
4,231
88,579
315,100
-
473,950
970,322
136,425
6,685
-
20,359
-
34,308
-
7,465
-
2,808
-
61,103
-
1,558,434
315,100
1,580,697
6,685
20,359
34,308
7,465
2,808
61,103
574,395
100,720
(119,023)
8,914
39,252
45,360
58,881
1,423
27,476
-
8,283
(98,462)
-
122,819
-
-
(33,514)
-
(40,000)
-
3,477
-
-
-
(90,179)
122,819
-
(33,514)
(40,000)
10,541
5,407,901
287,645
605
Grant
61,271
574,395
2,065,363
6,195
Recreation
Activity
Public
Improvement
District
5,982,296
3,796
269,678
$
280,219
8,914
62,616
$
66,412
5,738
225,559
$
234,473
89
5,360
66,495
$
72,233
178,374
$
183,734
3,477
-
-
62,358
1,423
27,476
103,176
$
165,534
25,157
$
26,580
126,743
$
154,219
EXHIBIT C-2
LEOSE
$
Donations
-
$
518
$
1,053
Juveline
Case
Manager
$
127
$
271,395
552
Crime Control
and
Prevention
District
Lewisville Local
Government
Corporation
PEG
Programming
$
-
-
8
$
2,614,154
1,428
3,910
840
-
419,768
371,222
78,917
-
420,286
372,275
79,044
271,947
3,918
2,616,422
2,636
-
357,222
2,000
10,032
-
301,541
55,165
52,679
-
17,774
218,111
-
2,636
369,254
356,706
52,679
235,885
-
(2,636)
51,032
15,569
26,365
36,062
-
(8,283)
-
-
(17,438)
-
-
434,459
777,145
2,441,098
317,100
3,037,992
1,161,152
1,336,614
1,758,741
719,492
1,211,604
8,293,956
3,918
857,681
1,919,909
-
(30,000)
-
-
-
(30,000)
8,927
36,062
3,918
827,681
662,233
677,802
86,073
$
95,000
193,135
$
229,197
1,148
$
5,066
90
7,602,737
287,645
15,036
719,492
-
(17,438)
$
$
63,716
1,364,459
180,798
149,768
-
-
12
11,310,681
15,569
246,308
$
583,031
(8,283)
203,559
2,636,652
2,749
Total
Non-Major
Governmental
Funds
2,639,401
42,749
$
$
Castle
Hills (PID)
Capital
Projects
515,834
945,453
583,019
1,360,957
-
-
Fire Control
Prevention and
Emergency
Medical Services
583,019
-
(2,636)
2,636
$
Police
Federal
Forfeiture
(30,000)
-
1,365,742
(30,000)
2,681,051
131,102
(257,697)
3,477
-
(123,118)
(628,573)
791,142
$
3,016,725
-
1,889,909
538,061
$
(628,573)
2,893,607
679,114
$
50,541
9,622,800
$
12,516,407
EXHIBIT C-3
HOTEL/MOTEL TAX SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES-BUDGET
Budgeted Amounts
Original
Final
REVENUES:
Taxes
Investment earnings
Miscellaneous
$
Total revenues
1,963,922
10,529
1,450,000
$
1,963,922
10,529
1,450,000
Variance with
Final Budget
Positive
(Negative)
Actual
$
2,065,363
6,195
61,271
$
101,441
(4,334)
(1,388,729)
3,424,451
3,424,451
2,132,829
(1,291,622)
EXPENDITURES:
1,323,324
1,414,848
1,558,434
(143,586)
Total expenditures
1,323,324
1,414,848
1,558,434
(143,586)
2,101,127
2,009,603
574,395
(1,435,208)
(1,500,000)
(1,500,000)
-
1,500,000
(1,500,000)
(1,500,000)
-
1,500,000
OVER EXPENDITURES
OTHER FINANCING USES:
Transfers out
Total other financing uses
$
601,127
509,603
574,395
5,407,901
5,407,901
5,407,901
6,009,028
$
91
5,917,504
$
5,982,296
64,792
$
64,792
EXHIBIT C-4
RECREATION ACTIVITY SPECIAL REVENUE FUND
Budgeted Amounts
Original
Final
REVENUES:
Recreation
Investment earnings
Miscellaneous
$
Total revenues
EXPENDITURES:
CurrentCulture, parks and recreation
Total expenditures
EXCESS OF REVENUES OVER
EXPENDITURES
Transfers in
Transfers out
NET CHANGES IN FUND BALANCES
$
360,429
1,077
131,795
$
Variance with
Final Budget
Positive
(Negative)
Actual
360,429
1,077
131,795
$
287,645
605
127,570
$
(72,784)
(472)
(4,225)
493,301
493,301
415,820
(77,481)
376,319
394,357
315,100
79,257
376,319
394,357
315,100
79,257
116,982
98,944
100,720
1,776
(116,500)
(98,462)
8,283
(98,462)
8,283
-
(116,500)
(98,462)
(90,179)
8,283
482
482
10,541
10,059
269,678
269,678
269,678
-
270,160
$
92
270,160
$
280,219
$
10,059
EXHIBIT C-5
GRANT SPECIAL REVENUE FUND
Budgeted Amounts
Original
Final
REVENUES:
Investment earnings
Grants:
Public safety
Public services
$
Total revenues
EXPENDITURES:
CurrentPublic safety
Public services
Capital outlay
Total expenditures
4,887
$
4,887
Actual
$
387
Variance with
Final Budget
Positive
(Negative)
$
(4,500)
396,011
947,154
812,826
947,154
515,834
945,453
(296,992)
(1,701)
1,348,052
1,764,867
1,461,674
(303,193)
433,234
949,172
-
701,240
1,907,869
174,738
473,950
970,322
136,425
227,290
937,547
38,313
1,382,406
2,783,847
1,580,697
1,203,150
(34,354)
(1,018,980)
(119,023)
899,957
OTHER FINANCING SOURCES:
Transfers in
34,836
59,751
122,819
63,068
Total other financing sources
34,836
59,751
122,819
63,068
3,796
963,025
482
62,616
(959,229)
$
63,098
93
62,616
$
(896,613)
62,616
$
66,412
$
963,025
EXHIBIT C-6
PUBLIC IMPROVEMENT DISTRICT TAX SPECIAL REVENUE FUND
Budgeted Amounts
Original
Final
REVENUES:
Taxes
Investment earnings
Total revenues
$
15,174
938
$
15,174
938
Actual
$
15,173
426
Variance with
Final Budget
Positive
(Negative)
$
(1)
(512)
16,112
16,112
15,599
EXPENDITURES:
15,000
15,000
6,685
8,315
Total expenditures
15,000
15,000
6,685
8,315
EXCESS OF REVENUES
OVER EXPENDITURES
1,112
1,112
8,914
7,802
1,112
1,112
8,914
7,802
225,559
225,559
225,559
-
$ 226,671
$ 226,671
$ 234,473
94
(513)
$
7,802
EXHIBIT C-7
MUNICIPAL COURT SECURITY SPECIAL REVENUE FUND
Budgeted Amounts
Original
Final
REVENUES:
Miscellaneous
Interest
$
Total revenues
61,118
258
$
61,118
258
Actual
$
59,503
108
Variance with
Final Budget
Positive
(Negative)
$
(1,615)
(150)
61,376
61,376
59,611
(1,765)
26,100
26,100
20,359
5,741
26,100
26,100
20,359
5,741
35,276
35,276
39,252
3,976
(33,513)
(33,513)
(33,514)
(1)
(33,513)
(33,513)
(33,514)
(1)
1,763
1,763
5,738
3,975
66,495
66,495
66,495
-
EXPENDITURES:
Total expenditures
EXCESS OF REVENUES
OVER EXPENDITURES
Transfers out
$
68,258
95
$
68,258
$
72,233
$
3,975
EXHIBIT C-8
MUNICIPAL COURT TECHNOLOGY SPECIAL REVENUE FUND
Budgeted Amounts
Original
Final
REVENUES:
Miscellaneous
Investment earnings
$
Total revenues
81,482
838
$
81,482
838
Actual
$
79,343
325
Variance with
Final Budget
Positive
(Negative)
$
(2,139)
(513)
82,320
82,320
79,668
(2,652)
42,320
44,633
34,308
10,325
42,320
44,633
34,308
10,325
40,000
37,687
45,360
7,673
(40,000)
(40,000)
(40,000)
-
(40,000)
(40,000)
(40,000)
-
-
(2,313)
5,360
7,673
EXPENDITURES:
Total expenditures
EXCESS OF REVENUES OVER
EXPENDITURES
Transfers out
178,374
$
178,374
96
178,374
$
176,061
178,374
$
183,734
$
7,673
EXHIBIT C-9
POLICE ASSET FORFEITURE SPECIAL REVENUE FUND
Budgeted Amounts
Original
Final
REVENUES:
Investment earnings
Miscellaneous
$
Total revenues
708
18,500
$
Actual
708
18,500
$
249
66,097
Variance with
Final Budget
Positive
(Negative)
$
(459)
47,597
19,208
19,208
66,346
47,138
35,000
35,000
7,465
27,535
35,000
35,000
7,465
27,535
(15,792)
(15,792)
58,881
74,673
OTHER FINANCING SOURCES:
-
-
3,477
3,477
Total other financing sources
-
-
3,477
3,477
(15,792)
(15,792)
62,358
78,150
103,176
103,176
103,176
-
EXPENDITURES:
Total expenditures
$
87,384
97
$
87,384
$
165,534
$
78,150
EXHIBIT C-10
FIRE AND POLICE TRAINING SPECIAL REVENUE FUND
Budgeted Amounts
Original
Final
REVENUES:
Investment earnings
Miscellaneous
Total revenues
EXPENDITURES:
Total expenditures
$
503
73,122
$
503
73,122
Actual
$
253
88,326
Variance with
Final Budget
Positive
(Negative)
$
(250)
15,204
73,625
73,625
88,579
14,954
83,573
83,573
61,103
22,470
83,573
83,573
61,103
22,470
(9,948)
(9,948)
27,476
37,424
-
126,743
126,743
126,743
$ 116,795
$ 116,795
$ 154,219
98
$
37,424
EXHIBIT C-11
LAW ENFORCEMENT OFFICER STANDARDS AND EDUCATION SPECIAL REVENUE FUND
Budgeted Amounts
Original
Final
REVENUES:
Investment earnings
$
Total revenues
EXPENDITURES:
Total expenditures
$
21
$
Actual
21
21
21
2,855
$
-
Variance with
Final Budget
Positive
(Negative)
$
(21)
-
(21)
2,855
2,636
219
2,855
2,855
2,636
219
(2,834)
(2,834)
(2,636)
198
2,636
2,636
2,636
(198)
99
$
(198)
$
-
$
198
EXHIBIT C-12
DONATIONS SPECIAL REVENUE FUND
Budgeted Amounts
Original
Final
REVENUES:
Investment earnings
Miscellaneous
$
Total revenues
1,044
369,272
$
1,044
369,272
Actual
$
518
419,768
Variance with
Final Budget
Positive
(Negative)
$
(526)
50,496
370,316
370,316
420,286
49,970
359,907
-
359,907
4,000
-
357,222
2,000
10,032
2,685
2,000
(10,032)
359,907
363,907
369,254
(5,347)
10,409
6,409
51,032
44,623
-
-
(8,283)
(8,283)
-
-
(8,283)
(8,283)
10,409
6,409
42,749
36,340
203,559
203,559
203,559
-
EXPENDITURES:
Culture, parks, and recreation
Public services
Total expenditures
EXCESS OF REVENUES
OVER EXPENDITURES
Transfers out
$
213,968
100
$
209,968
$
246,308
$
36,340
EXHIBIT C-13
POLICE FEDERAL FORFEITURE SPECIAL REVENUE FUND
Budgeted Amounts
Original
Final
REVENUES:
Investment earnings
Miscellaneous
Total revenues
EXPENDITURES:
Capital outlay
Total expenditures
$
1,272
112,000
$
1,272
112,000
Actual
$
1,053
371,222
Variance with
Final Budget
Positive
(Negative)
$
(219)
259,222
113,272
113,272
372,275
259,003
433,663
-
309,208
133,874
301,541
55,165
7,667
78,709
433,663
443,082
356,706
86,376
(320,391)
(329,810)
15,569
345,379
662,233
662,233
662,233
$ 341,842
$ 332,423
$ 677,802
101
$
345,379
EXHIBIT C-14
JUVENILE CASE MANAGER SPECIAL REVENUE FUND
Budgeted Amounts
Original
Final
REVENUES:
Investment earnings
Miscellaneous
$
Total revenues
EXPENDITURES:
Total expenditures
EXCESS OF REVENUES
OVER EXPENDITURES
Transfers out
$
309
80,903
$
Actual
309
80,903
$
127
78,917
Variance with
Final Budget
Positive
(Negative)
$
(182)
(1,986)
81,212
81,212
79,044
(2,168)
63,748
63,748
52,679
11,069
63,748
63,748
52,679
11,069
17,464
17,464
26,365
8,901
(17,438)
(17,438)
(17,438)
-
(17,438)
(17,438)
(17,438)
-
26
26
8,927
8,901
86,073
86,073
86,073
-
86,099
102
$
86,099
$
95,000
$
8,901
EXHIBIT C-15
PEG PROGRAMMING
Budgeted Amounts
Original
Final
REVENUES:
Investment earnings
Taxes
Total revenues
EXPENDITURES:
Capital outlay
Total expenditures
$
2,145
214,527
$
2,145
214,527
Actual
$
552
271,395
Variance with
Final Budget
Positive
(Negative)
$
(1,593)
56,868
216,672
216,672
271,947
55,275
48,000
130,000
31,701
206,493
17,774
218,111
13,927
(11,618)
178,000
238,194
235,885
2,309
38,672
(21,522)
36,062
57,584
193,135
193,135
193,135
-
$ 231,807
$ 171,613
$ 229,197
103
$
57,584
EXHIBIT C-16
CRIME CONTROL AND PREVENTION DISTRICT
Budgeted Amounts
Original
Final
REVENUES:
Investment earnings
Taxes
Miscellaneous
$
Total revenues
26,106
2,622,034
-
$
26,106
2,622,034
-
Actual
$
1,428
2,614,154
840
Variance with
Final Budget
Positive
(Negative)
$
(24,678)
(7,880)
840
2,648,140
2,648,140
2,616,422
(31,718)
72,181
2,027,254
197,752
64,648
72,181
2,002,189
197,752
149,768
63,716
1,364,459
180,798
149,768
8,465
637,730
16,954
-
2,361,835
2,421,890
1,758,741
663,149
EXCESS OF REVENUES
OVER EXPENDITURES
286,305
226,250
857,681
631,431
Transfers out
(30,000)
(30,000)
(30,000)
-
(30,000)
(30,000)
(30,000)
-
256,305
196,250
827,681
631,431
538,061
538,061
538,061
-
734,311
$ 1,365,742
EXPENDITURES:
General government
Public safety
Public services
Capital outlay
Total expenditures
$
794,366
104
$
$
631,431
EXHIBIT C-17
FIRE CONTROL, PREVENTION AND EMERGENCY MEDICAL SERVICES DISTRICT
Budgeted Amounts
Original
Final
REVENUES:
Investment earnings
Taxes
Total revenues
EXPENDITURES:
Public safety
Capital outlay
Total expenditures
EXCESS OF REVENUES
OVER EXPENDITURES
Transfers out
$
26,106
2,610,616
$
26,106
2,610,616
Actual
$
2,749
2,636,652
Variance with
Final Budget
Positive
(Negative)
$
(23,357)
26,036
2,636,722
2,636,722
2,639,401
2,679
879,532
13,130
892,662
325
719,492
-
173,170
325
892,662
892,987
719,492
173,495
1,744,060
1,743,735
1,919,909
176,174
(30,000)
(30,000)
(30,000)
-
(30,000)
(30,000)
(30,000)
-
1,714,060
1,713,735
1,889,909
176,174
791,142
791,142
791,142
-
$ 2,505,202
$ 2,504,877
$ 2,681,051
105
$
176,174
INTERNAL SERVICE FUNDS
Internal Service funds are used to account for the financing of goods or services provided by one
department to other departments within the City, on a user charge basis.
SELF-INSURANCE RISK FUND
To account for the funds accumulated for defined risk of workers’ compensation, unemployment,
and liability/property casualty programs. Revenues are from premiums charged to department
and funds are disbursed accordingly to program expenses such as claim payments, administrative
cost and reinsurance premiums.
HEALTH INSURANCE RISK POOL FUND
To account for the funds accumulated from premium charges to department and employees for
health and dental coverage programs. Expenses include claim payments, administrative costs,
and reinsurance premiums.
MAINTENANCE AND REPLACEMNT FUND
To provide for fleet maintenance services for City departments and account for the purchase of
all vehicles and major equipment operated by the City. Departments pay monthly charges to
provide the funds for future replacement of capital assets as well as reimburse fund for current
fleet repairs and maintenance.
106
COMBINING STATEMENT OF NET POSITION
SEPTEMBER 30, 2013
EXHIBIT D-1
Self
Insurance
Risk
ASSETS
Cash
Investments
ReceivablesInterest
Other
Inventory of supplies, at cost
Prepaid items
Total current assets
Non current assets
Capital assets
Other improvements
Vehicles
Accumulated depreciation
Capital assets, net of accumulated depreciation
Total assets
Current liabilities
Accounts payable
Accrued liabilities
Total liabilities
NET POSITION
Unrestricted
Total net position
$
881,365
4,870,136
Health
Insurance
Risk Pool
$
479,637
1,631,520
Maintenance
and
Replacement
$
850,731
4,838,098
Total
$
2,211,733
11,339,754
4,218
48,389
1,250
17,737
19,718
3,989
105,708
11,760
9,457
17,737
105,708
79,867
5,804,108
2,149,862
5,810,286
13,764,256
274,272
635,926
(618,760)
-
4,856,449
20,040,167
(19,740,563)
274,272
5,492,375
20,040,167
(20,359,323)
291,438
-
5,156,053
5,447,491
6,095,546
2,149,862
10,966,339
19,211,747
12,832
516,364
-
802,430
-
23,214
81,898
36,046
1,318,794
81,898
529,196
802,430
105,112
1,436,738
291,438
5,274,912
1,347,432
5,156,053
5,705,174
5,447,491
12,327,518
$ 5,566,350
$ 1,347,432
10,861,227
17,775,009
107
$
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND NET POSITION
OPERATING REVENUES:
Charges for sales and services
Miscellaneous
Total operating revenues
OPERATING EXPENSES:
Cost of sales and services, net of reimbursements
Administrative
Depreciation
Total operating expenses
Operating income (loss)
NONOPERATING REVENUES:
Investment earnings
Gain (loss) on disposal of capital assets
Total nonoperating revenues
INCOME (LOSS) BEFORE TRANSFERS
AND CAPITAL CONTRIBUTIONS
EXHIBIT D-2
Self
Insurance
Risk
Health
Insurance
Risk Pool
$ 1,522,570
-
$ 8,036,268
5,413
1,522,570
8,041,681
2,148,268
11,712,519
1,581,508
44,826
6,671,040
1,053,032
-
208,354
645,542
1,842,163
8,460,902
1,698,574
1,886,989
1,626,334
7,724,072
2,696,059
12,046,465
(103,764)
317,609
Maintenance
and
Replacement
$
2,148,145
123
Total
$
11,706,983
5,536
(547,791)
(333,946)
9,304
-
2,014
-
10,810
79,509
22,128
79,509
9,304
2,014
90,319
101,637
(457,472)
(232,309)
(94,460)
319,623
TRANSFERS AND CAPITAL CONTRIBUTIONS:
Transfers in
Transfers out
Contributions from other funds
(1,000,000)
-
1,000,000
-
182,019
Total transfers and capital contributions
(1,000,000)
1,000,000
182,019
182,019
(1,094,460)
1,319,623
(275,453)
(50,290)
NET POSITION, beginning
6,660,810
27,809
11,136,680
$ 5,566,350
$ 1,347,432
$ 10,861,227
NET POSITION, ending
108
1,000,000
(1,000,000)
182,019
17,825,299
$
17,775,009
COMBINING STATEMENT OF CASH FLOWS
EXHIBIT D-3
Self
Insurance
Risk
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from transactions with other funds
Cash paid to employees for services
Cash paid for goods and services
Cash paid for claims
Cash received from miscellaneous items
$
1,525,544
(1,057,120)
(501,493)
-
Net cash provided by (used in) operating activities
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES:
Transfers in from other funds
Transfers out to other funds
Net cash provided by (used in) non-capital financing activities
-
(1,000,000)
1,000,000
-
$
$
1,000,000
(1,000,000)
-
-
-
(1,133,800)
(1,133,800)
(1,918,408)
321,473
764
(3,294,728)
1,516,293
10,810
(8,529,681)
5,833,603
23,852
(1,596,171)
(1,767,625)
(2,672,226)
881,365
$
(237,019)
(84,880)
716,656
935,611
479,637
$
317,609
850,731
(663,398)
2,875,131
$
(547,791)
2,211,733
(333,946)
44,826
-
1,842,163
1,886,989
2,974
(13,017)
35,912
-
(724)
805
41,462
-
(271)
(1,036)
(6,423)
21,931
7,972
1,500,000
1,979
(1,036)
(18,635)
99,305
7,972
1,500,000
70,695
41,543
3,364,336
3,476,574
(33,069)
-
(5,102)
109
3,142,628
(1,213,309)
79,509
(103,764)
Total adjustments
2,816,545
13,208,960
(384,956)
(2,541,841)
(7,145,071)
5,536
(1,213,309)
79,509
(341,499)
$
$
-
1,222,864
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:
Net operating income (loss)
Adjustments to reconcile net operating income (loss) to net cash
provided by (used in) operating activitiesDepreciation
Change in assets and liabilities:
(Increase) decrease in accounts receivable
(Increase) decrease in inventory
(Increase) decrease in prepaid expenses
Increase (decrease) in accounts and claims payable
Increase (decrease) in accrued liabilities
Increase (decrease) in due to other funds
Total
-
691,570
NET DECREASE IN CASH
NON CASH INVESTING AND FINANCING ACTIVITIES
From intragovernmental contributions
Increase (decrease) in fair value of investments
3,647,872
(384,956)
(446,494)
123
1,000,000
-
Net cash provided by (used in) investing activities
Net cash provided by (used in) operating activities
$
(1,000,000)
(3,316,545)
3,995,837
12,278
CASH AT BEGINNING OF YEAR
8,035,544
(1,038,227)
(6,643,578)
5,413
359,152
Net cash used in capital and related financing activities
CASH AT END OF YEAR
$
Maintenance
and
Replacement
(33,069)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Acquisition and construction of capital assets
Proceeds from sale of equipment
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of investments
Proceeds from sale and maturities of investments
Interest received
Health
Insurance
Risk Pool
$
$
359,152
-
1,250
$
2,816,545
$
$
182,019
$
(4,132)
3,142,628
182,019
(7,984)
DISCRETELY PRESENTED
COMPONENT UNITS
LEWISVILLE PARKS AND LIBRARY DEVELOPMENT CORPORATION
BALANCE SHEET
SEPTEMBER 30, 2013
EXHIBIT E-1
Lewisville
Parks and
Library
Development
Corporation
ASSETS
Cash
Investments
Receivables
Prepaid items
Total assets
LIABILITIES
Accrued liabilities
$
1,422,870
8,089,848
1,018,767
892
$
10,532,377
$
59,779
20,503
94,276
174,558
Total liabilities
FUND BALANCE
Unassigned
10,357,819
10,357,819
Total fund balance
Total liabilities
and fund balance
$
110
10,532,377
RECONCILIATION OF FUND BALANCE TO NET POSITION
SEPTEMBER 30, 2013
EXHIBIT E-2
Total fund balance - governmental funds
$ 10,357,819
Amounts reported in the Statement of Net Position
NET POSITION OF LEWISVILLE PARKS AND LIBRARY DEVELOPMENT CORPORATION
111
181,459
(29,659,213)
$ (19,119,935)
EXHIBIT E-3
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
YEAR ENDED SEPTEMBER 30, 2013
Lewisville
Parks and
Library
Development
Corporation
Revenues:
Taxes
General sales and use taxes
Charges for service
Interest
Total revenues
$
Expenditures:
Current:
Debt service:
Principal
Interest and other fiscal charges
Total expenditures
5,685,240
235,759
17,055
5,938,054
2,500,782
1,445,000
1,400,809
5,346,591
591,463
Net changes in fund balance
Fund balance, beginning of year
9,766,356
$
Fund balance, end of year
112
10,357,819
RECONCILIATION OF CHANGES IN FUND BALANCE TO THE CHANGE IN
NET POSITION IN THE STATEMENT OF ACTIVITIES
Net change in fund balances - Lewisville Parks and Library Development Corporation
EXHIBIT E-4
$
591,463
Amounts reported for component unit funds in the statement of
activities are different because:
The issuance of long term debt (e.g. bonds) provides current financial resources to
governmental funds, while the repayment of the principal of long-term debt consumes
the current finanical resources of governmental funds. Neither transaction, however,
has any effect on net position. Also, governmental funds report the effect of issuance
costs, premiums, discounts, and similar items when debt is first issued, whereas the
the amounts are deferred and amortized in the statement of activities. This amount
(bond principal payments of $1,445,000 plus $148,744 amortization of premium, less
$83,715 amortization of deferred refunding amount less $16,437 amortization of
issuance costs is the net effect of these differences in the treatment of long term
debt and related items.
Current year changes in the long term liability for compensated absences do not require
the use of current financial resources; therefore, are not reported as expenditures in
governmental funds.
Current year changes in the long term liability for net pension benefit obligations
do not require the use of current financial resources; therefore, are not reported as
expenditures in the governmental funds.
CHANGE IN NET POSITION OF LEWISVILLE PARKS AND
LIBRARY DEVELOPMENT CORPORATION
113
1,493,592
3,967
(1,485)
$ 2,087,537
TAX INCREMENT REINVESTMENT ZONE (OLD TOWN)
BALANCE SHEET
SEPTEMBER 30, 2013
EXHIBIT E-5
Tax
Increment
Reinvestment
Zone
(Old Town)
ASSETS
Cash
Investments
Receivables
Total assets
LIABILITIES
$
185,972
1,057,633
876
$
1,244,481
$
42,444
42,444
Total liabilities
FUND BALANCE
Restricted
1,202,037
1,202,037
Total fund balance
Total liabilities
and fund balance
$
114
1,244,481
RECONCILIATION OF FUND BALANCE TO NET POSITION
Total fund balance - governmental funds
EXHIBIT E-6
$
1,202,037
Amounts reported in the Statement of Net Position
47,256
Capital assets used in governmental activities are not financial resources
and therefore are not reported as assets in governmental funds.
7,664,422
NET POSITION OF TAX INCREMENT REINVESTMENT ZONE (OLD TOWN)
115
(7,589,626)
$
1,324,089
EXHIBIT E-7
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
Tax
Increment
Reinvestment
Zone
(Old Town)
Revenues:
Taxes
General sales and use taxes
Interest
Total revenues
$
Expenditures:
Current:
General government
Debt service:
Principal
Interest and other fiscal charges
Total expenditures
508,140
2,294
510,434
5,631
165,000
343,766
514,397
D
Net changes in fund balance
(3,963)
Fund balance, beginning of year
1,206,000
$
Fund balance, end of year
116
1,202,037
RECONCILIATION OF CHANGES IN FUND BALANCE TO THE CHANGE IN
NET POSITION IN THE STATEMENT OF ACTIVITIES
Net change in fund balances - Tax Increment Reinvestment Zone (Old Town)
EXHIBIT E-8
$
(3,963)
Amounts reported for component unit funds in the statement of
activities are different because:
Repayment of bond principal is an expenditure in the governmental funds,
but the repayment reduces long-term liabilities in the statement of net position.
$
Depreciation expense on capital assets is reported in the government-wide statement of
activities and changes in net assets, but they do not require the use of current
financial resources. Therefore, depreciation expense is not reported as expenditures
in the governmental funds.
(375,976)
Governmental funds report the effect of issuance costs, premiums, discounts,
and similar items when debt is first issued, whereas the amounts are deferred
and amortized in the statement of activities. This amount is the net effect of
the amortization of issuance costs, ($3,444), and premium, $1,066.
(2,378)
Current year changes in accrued interest payable do not require the use of current
financial resources; therefore, are not reported as expenditures in governmental
funds.
CHANGE IN NET POSITION OF TAX INCREMENT
REINVESTMENT ZONE (OLD TOWN)
117
165,000
928
$
(216,389)
STATISTICAL
SECTION
STATISTICAL SECTION
This part of the City of Lewisville's 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
Table
Financial Trends
These schedules contain trend information to help the reader understand
how the government's financial performance and well-being have changed
over time. ......................................................................................................................... 1-4
Revenue Capacity
These schedules contain information to help the reader assess the
government's most significant local revenue source, property and sales tax. ............... 5-11
Debt Capacity
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. ........................................... 12-16
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the
reader understand the environment within which the government's financial
activities take place. ..................................................................................................... 17-18
Operating Information
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. ...................... 19-21
118
NET POSITION BY COMPONENT
Last Ten Fiscal Years (accrual basis of accounting)
(Unaudited)
Fiscal Year
2004
2005
Restricted
Unrestricted
Total governmental activities net assets
$ 188,596,925
3,158,418
34,498,004
$ 226,253,347
$ 215,782,928
2,954,825
41,578,455
$ 260,316,208
$
Restricted
Unrestricted
$ 117,454,232
2,132,858
34,124,375
$ 153,711,465
$ 130,190,472
1,845,879
33,789,667
$ 165,826,018
$
Primary government
Restricted
Unrestricted
$ 306,051,157
5,291,276
68,622,379
$ 379,964,812
$ 345,973,400
4,800,704
75,368,122
$ 426,142,226
$
Source: Comprehensive Annual Financial Reports
119
2006
$
$
$
2007
239,332,939
1,446,727
46,779,350
287,559,016
$
137,038,948
1,576,475
37,687,853
176,303,276
$
376,371,887
3,023,202
84,467,203
463,862,292
$
$
$
$
256,515,336
1,725,352
44,731,063
302,971,751
145,843,454
2,075,929
36,677,712
184,597,095
402,358,790
3,801,281
81,408,775
487,568,846
TABLE-1
Fiscal Year
2008
$
$
$
$
$
$
2009
287,096,412
1,756,591
50,443,168
339,296,171
$
159,684,492
2,024,478
38,090,009
199,798,979
$
446,780,904
3,781,069
88,533,177
539,095,150
$
$
$
$
2010
308,190,669
1,867,844
49,358,449
359,416,962
$
166,895,435
1,914,446
35,940,547
204,750,428
$
475,086,104
3,782,290
85,298,996
564,167,390
$
$
$
$
2011
311,014,889
1,324,264
48,721,698
361,060,851
$
172,162,748
2,147,527
33,568,393
207,878,668
$
483,177,637
3,471,791
82,290,091
568,939,519
$
$
$
$
305,260,721
1,016,096
47,005,244
353,282,061
181,476,154
1,939,786
28,480,396
211,896,336
486,736,875
2,955,882
75,485,640
565,178,397
120
2012
$
298,329,672
1,012,020
59,368,657
358,710,349
$
181,437,600
1,975,308
35,270,129
218,683,037
$
$
479,767,272
2,987,328
94,638,786
577,393,386
2013
$
314,990,028
10,755,866
33,848,899
359,594,793
$
186,611,050
1,688,303
35,383,205
223,682,558
$
$
501,601,078
12,444,169
69,232,104
583,277,351
CHANGES IN NET POSITION
(Unaudited)
Fiscal Year
2004
2005
2006
8,320,410
6,266,618
25,824,358
15,564,147
2,738,681
58,714,214
$ 9,767,189
6,309,552
27,664,557
15,182,968
3,300,061
62,224,327
$ 13,392,249
6,199,881
28,182,352
13,667,907
2,202,454
63,644,843
Business-type activites
Water and sewer
Total business-type activites expenses
16,708,528
16,708,528
17,108,879
17,108,879
19,556,158
19,556,158
19,676,760
19,676,760
Total primary government expenses
75,422,742
79,333,206
83,201,001
87,983,162
Program Revenues
General government
Culture, parks & recreation
Public safety
Public services
Operating grants and contributions
Total governmental activites program revenues
2,379,433
1,489,037
3,666,332
1,542,101
8,440,210
7,643,587
25,160,700
2,769,731
1,511,722
4,500,082
1,524,658
13,842,626
23,363,428
47,512,247
3,309,296
1,612,039
4,695,193
1,816,495
1,281,838
17,673,122
30,387,983
3,622,179
1,537,244
4,560,499
2,118,574
2,109,623
12,977,908
26,926,027
Water and sewer
Total business-type activities program revenues
21,677,904
2,243,826
23,921,730
22,653,761
5,006,041
27,659,802
26,184,466
4,495,510
30,679,976
23,449,079
4,608,716
28,057,795
Total primary government program revenues
49,082,430
75,172,049
61,067,959
54,983,822
(33,553,514)
7,213,202
$ (26,340,312)
(14,712,080)
10,550,923
$ (4,161,157)
Expenses
General government
Public safety
Public services
Interest on long-term debt
Total governmental activities expenses
Net (Expense)/Revenue
Total primary government net expense
$
121
(33,256,860)
11,123,818
$ (22,133,042)
2007
$
9,848,489
7,139,298
30,491,917
18,569,013
2,257,685
68,306,402
(41,380,375)
8,381,035
$ (32,999,340)
TABLE-2
(Continued)
Fiscal Year
2008
2010
2011
2012
2013
10,746,552
8,667,117
35,349,800
20,313,784
2,673,325
77,750,578
$ 10,760,138
9,299,504
37,628,477
22,404,173
2,753,817
82,846,109
$ 10,997,464
9,585,769
38,558,345
24,634,802
2,603,426
86,379,806
$ 11,987,014
9,487,780
39,275,855
25,527,286
2,666,807
88,944,742
$ 13,005,019
9,377,831
40,983,264
25,089,041
2,602,891
91,058,046
20,378,432
20,378,432
20,822,278
20,822,278
21,521,566
21,521,566
23,055,596
23,055,596
22,170,962
22,170,962
22,238,910
22,238,910
95,714,513
98,572,856
104,367,675
109,435,402
111,115,704
113,296,956
3,995,292
1,794,574
5,422,367
2,067,879
1,136,855
35,595,714
50,012,681
3,386,580
1,741,591
5,929,457
1,516,232
1,202,143
23,865,801
37,641,804
3,306,827
1,696,101
5,000,197
1,656,995
2,228,626
11,183,861
25,072,607
3,348,523
1,631,629
5,665,379
1,947,382
2,190,754
3,579,450
18,363,117
3,447,957
1,615,228
5,390,583
1,512,075
2,517,289
15,090,545
29,573,677
3,383,721
1,558,232
6,021,116
2,161,083
2,415,909
4,745,018
20,285,079
25,340,886
11,228,765
36,569,651
25,657,454
1,823,269
27,480,723
26,146,670
1,470,699
27,617,369
28,072,610
2,643,208
30,715,818
28,375,842
4,254,018
32,629,860
27,797,951
2,851,893
30,649,844
86,582,332
65,122,527
52,689,976
49,078,935
62,203,537
50,934,923
(25,323,400)
16,191,219
$ (9,132,181)
(40,108,774)
6,658,445
$ (33,450,329)
(57,773,502)
6,095,803
$ (51,677,699)
(68,016,689)
7,660,222
$ (60,356,467)
(59,371,065)
10,458,898
$ (48,912,167)
(70,772,967)
8,410,934
$ (62,362,033)
$ 10,697,346
7,927,455
33,721,041
19,409,072
3,581,167
75,336,081
2009
$
(Continued)
122
CHANGES IN NET POSITION
(Unaudited)
Fiscal Year
General Revenues and
Other Changes in Net Position
Taxes
Property taxes
Sales taxes
Other taxes
Franchise taxes
Occupancy taxes
Penalties and interest
Intergovernmental
Investment earnings
Gain (loss) on disposal of assets
Miscellaneous
Transfers
Total governmental activities
2004
2005
2006
$ 22,737,306
16,970,465
179,804
4,276,869
1,178,478
202,683
699,017
43,925
336,007
2,617,820
49,242,374
$ 23,305,174
17,284,149
201,297
4,485,406
1,348,761
252,204
1,518,114
77,563
589,133
(286,860)
48,774,941
$ 25,125,486
18,113,568
1,074,299
4,599,447
1,480,548
231,016
2,350,326
470
4,558,898
2,965,612
60,499,670
2007
$
26,257,705
19,216,744
1,043,749
4,435,578
1,606,115
209,514
3,614,454
(2,424,552)
243,839
2,943,135
57,146,281
Investment earnings
Intergovernmental contributions
Gain (loss) on disposal of assets
Miscellaneous
Transfers
626,967
300,467
529,186
(2,617,820)
(1,161,200)
1,225,226
51,544
286,860
1,563,630
2,313,351
5,701
(2,965,612)
(646,560)
2,775,365
33,103
47,451
(2,943,135)
(87,216)
48,081,174
50,338,571
59,853,110
57,059,065
Change in Net Position
15,688,860
6,052,002
$ 21,740,862
34,062,861
12,114,553
$ 46,177,414
27,242,810
10,477,258
$ 37,720,068
15,765,906
8,293,819
24,059,725
123
$
TABLE-2
(Continued)
Fiscal Year
2008
$ 27,936,176
18,932,595
1,119,792
4,803,626
1,830,230
238,428
3,287,167
9,682
416,282
3,073,842
61,647,820
2009
$
29,580,192
17,686,496
1,095,822
4,635,238
1,554,826
219,250
2,051,754
5,560
291,772
3,108,655
60,229,565
2010
2011
2012
2013
$ 28,898,185
18,605,874
1,046,346
5,055,711
1,551,355
186,231
526,984
13,118
272,693
3,260,894
59,417,391
$ 27,774,848
18,677,965
1,038,923
5,272,499
1,862,191
146,689
459,600
3,075
1,077,579
3,924,530
60,237,899
$ 28,739,963
22,666,950
1,011,328
5,436,197
1,960,910
228,746
365,045
8,525
396,641
3,985,048
64,799,353
$ 29,579,363
27,451,139
1,200,502
5,814,797
2,065,363
154,905
624,125
210,934
3,477
817,291
3,735,515
71,657,411
2,015,797
4,385
64,325
(3,073,842)
(989,335)
1,344,073
57,586
(3,108,655)
(1,706,996)
211,973
81,358
(3,260,894)
(2,967,563)
269,639
12,337
(3,924,530)
(3,642,554)
286,958
25,893
(3,985,048)
(3,672,197)
120,530
203,572
(3,735,515)
(3,411,413)
60,658,485
58,522,569
56,449,828
56,595,345
61,127,156
68,245,998
36,324,420
15,201,884
$ 51,526,304
20,120,791
4,951,449
25,072,240
1,643,889
3,128,240
4,772,129
5,428,288
6,786,701
$ 12,214,989
884,444
4,999,521
5,883,965
$
$
(7,778,790)
4,017,668
$ (3,761,122)
124
$
FUND BALANCES, GOVERNMENTAL FUNDS
(Unaudited)
2004
2005
Fiscal Year
2006
2007
General fund
Nonspendable
Assigned
Unassigned
Total general fund
$
132,518
618,052
17,363,344
$18,113,914
$
262,563
250,242
19,371,265
$19,884,070
$
252,581
209,551
26,212,925
$26,675,057
271,000
222,778
26,272,130
$ 26,765,908
All other governmental funds
Nonspendable
Restricted
Committed
Assigned
Total all other governmental funds
10,379
28,556,129
5,194,857
5,767,714
$39,529,079
3,764,412
21,955,942
5,406,239
4,874,817
$36,001,410
$ 3,774,672
19,247,971
5,672,381
7,289,482
$35,984,506
$
125
$
3,736,550
30,231,341
7,578,509
11,025,342
$ 52,571,742
TABLE-3
Fiscal Year
2008
2009
2010
2011
2012
2013
$
196,935
156,790
31,175,630
$ 31,529,355
$
228,411
121,575
31,658,380
$32,008,366
$
201,588
136,854
26,429,898
$ 26,768,340
$
230,316
100,680
28,989,043
$ 29,320,039
$
234,127
222,738
30,615,982
$ 31,072,847
$
$
$ 3,244,870
31,570,851
8,589,094
7,827,143
$51,231,958
$
$
$
$
3,489,874
35,273,808
8,365,004
12,433,089
$ 59,561,775
3,245,372
26,443,792
7,687,555
14,681,969
$ 52,058,688
2,758,852
22,563,101
7,705,016
10,335,218
$ 43,362,187
126
2,518,104
31,447,210
6,812,474
6,985,090
$ 47,762,878
381,982
538,290
30,571,006
$ 31,491,278
2,265,652
43,011,859
7,065,074
7,166,018
$ 59,508,603
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS
(Unaudited)
Fiscal Year
2004
Revenues
Property and other taxes
Recreation
Fines
Investment earnings
Intergovenrmental
Grants
Public safety
Public services
Contributions and donations
Miscellaneous
Total revenues
$
2005
45,587,753
1,632,628
4,048,211
1,290,580
2,488,340
538,541
-
$
2006
47,035,823
1,578,864
4,140,027
1,332,438
2,686,299
1,154,775
-
$
2007
50,547,358
2,070,156
4,858,787
1,426,331
2,826,234
2,350,327
-
$
52,886,457
2,393,345
5,212,302
1,385,188
2,680,535
3,614,458
-
9,749
199,699
1,029,873
10,689,358
601,293
68,116,025
9,741
559,031
1,557,993
12,803,249
1,084,302
73,942,542
10,512
384,964
730,845
3,499,030
4,961,341
73,665,885
10,305
588,798
1,256,152
3,205,708
761,399
73,994,647
Expenditures
General government
Public safety
Public services
Capital outlay
Debit service:
Principal
Total expenditures
6,958,931
5,783,662
25,422,485
8,525,945
15,030,177
8,181,298
5,689,354
26,960,074
9,101,845
26,532,611
7,543,722
6,058,682
28,400,718
9,049,144
16,527,094
8,505,159
6,118,753
30,221,744
9,696,518
14,848,067
7,608,634
2,413,005
71,742,839
4,846,032
2,376,104
83,687,318
7,163,197
2,674,752
77,417,309
5,335,000
2,294,160
77,019,401
Excess (deficiency) of revenues
over (under) expenditures
(3,626,814)
(9,744,776)
(3,751,424)
(3,024,754)
Other financing sources (uses)
Transfers in
Transfers out
Proceeds from refunding bonds
Proceeds from general obligation bonds
Proceeds from certificates of obligation
Payments to refunding bond escrow agent
Premium (discount) on issuance of general obligation bonds
Contributions from other sources
6,523,247
(3,801,884)
6,860,000
2,475,000
27,941
12,084,304
6,192,216
(3,210,986)
9,655,000
4,790,000
(10,201,721)
762,754
7,987,263
7,780,970
(4,815,817)
6,805,000
755,354
10,525,507
16,364,425
(10,308,842)
5,070,000
13,655,000
(5,398,353)
658,892
14,890
20,056,012
Net change in fund balances
$
8,457,490
Debt service as a percentage
of noncapital expenditures
17.5%
$
(1,757,513)
$
11.8%
Notes: Debt service percentage is based on noncapital expenditures to the extent of capital outlay capitalized for the
government-wide statement of net assets. See Exhibit 6 of CAFRs for further information.
127
6,774,083
16.0%
$
17,031,258
12.3%
TABLE-4
Fiscal Year
2008
$
$
2009
54,828,308
2,328,846
5,603,449
1,591,676
2,916,566
3,287,167
-
$
2010
54,752,225
1,767,049
5,702,288
1,536,596
2,950,843
2,051,749
-
$
2011
55,411,805
1,894,107
5,522,540
1,502,618
2,946,204
526,987
-
$
2012
54,800,940
2,210,218
5,543,470
1,432,238
2,752,316
459,604
-
$
2013
60,070,877
1,741,153
5,680,893
1,448,853
2,874,525
365,043
-
$
66,279,731
2,375,771
6,051,283
1,380,911
2,954,961
210,934
1,771,288
1,061,894
220,857
708,082
27,641,031
975,687
101,163,563
312,057
238,649
686,616
5,072,965
1,026,729
76,097,766
29,634
1,247,926
1,038,782
4,018,465
1,080,387
75,219,455
24,424
538,837
934,516
1,922,304
2,109,044
72,727,911
25,936
580,182
875,473
10,100,624
1,880,771
85,644,330
515,834
945,453
1,434,519
2,258,538
86,179,223
8,956,950
6,640,069
32,450,887
9,724,646
36,317,662
9,334,801
6,458,408
33,755,435
9,998,112
24,862,380
9,115,750
6,207,016
35,016,553
9,492,466
14,505,465
9,404,791
6,300,265
35,209,021
9,591,553
14,330,533
9,933,848
6,318,868
36,816,688
9,687,620
23,658,611
10,350,058
6,288,988
39,487,803
10,596,633
16,208,343
4,995,000
3,494,604
102,579,818
5,205,000
2,869,614
92,483,750
5,695,000
2,849,017
82,881,267
6,590,000
2,604,989
84,031,152
6,325,000
2,405,624
95,146,259
5,410,000
3,143,454
91,485,279
(1,416,255)
(16,385,984)
(7,661,812)
(11,303,241)
(9,501,929)
(5,306,056)
12,103,060
(7,652,635)
8,715,000
(5,372)
9,682
13,169,735
7,478,048
(4,369,393)
5,430,000
(9,037.00)
5,560
8,535,178
13,622,782
(10,397,384)
2,565,000
(2,555,000)
13,118
3,248,516
8,015,843
(4,099,531)
1,605,000
(1,610,846)
24,898
3,075
1,220,000
5,158,439
8,778,083
(4,072,035)
16,490,000
9,260,000
(16,969,925)
1,240,780
8,525
920,000
15,655,428
11,323,247
(7,587,732)
12,455,000
11,753,480
11.7%
$
(7,850,806)
11.9%
$
(4,413,296)
12.1%
$
(6,144,802)
12.5%
128
$
6,153,499
11.4%
1,276,220
3,477
17,470,212
$
12,164,156
10.8%
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
Last Ten Fiscal Years
(Unaudited)
Less:
Tax-Exempt
Property
TABLE-5
Less:
Property
Under Freeze
Less:
TIRZ Zones
Property
Total Taxable
Assessed
Value
Total
Direct
Tax
Rate
Fiscal
Year
Estimated Market Value
Real
Personal
Property
Property & Other
2004
4,707,742,831
848,715,965
522,296,755
-
29,866,358
5,004,295,683
0.45050
2005
4,821,098,766
978,286,841
573,637,347
-
35,297,446
5,190,450,814
0.45050
2006
5,111,584,596
988,050,320
635,339,154
109,383,097
50,036,866
5,304,875,799
0.45679
2007
5,303,672,869
1,017,510,806
677,304,019
131,762,437
65,376,309
5,446,740,910
0.45679
2008
6,040,730,857
1,129,555,348
774,550,122
150,432,444
88,496,443
6,156,807,196
0.44050
2009
6,446,207,177
1,191,217,048
839,703,836
164,430,210
107,112,885
6,526,177,294
0.44021
2010
6,375,044,714
1,255,326,502
1,007,324,631
178,908,241
79,708,452
6,364,429,892
0.44021
2011
6,149,759,302
1,187,121,672
988,851,847
190,869,769
78,909,810
6,078,249,548
0.44021
2012
6,314,259,228
1,355,266,675
1,121,735,174
205,892,126
70,665,418
6,271,233,185
0.44021
2013
6,484,331,621
1,469,479,781
1,187,401,591
209,556,944
85,932,250
6,470,920,617
0.44021
Source: Denton Central Appraisal District, Certified Valuations
129
DIRECT AND OVERLAPPING PROPERTY TAX RATES
(per $100 of assessed value)
(Unaudited)
Fiscal
Year
Operating/
General
Rate
City Direct Rates
General
Obligation
Debt
Service
TABLE-6
Total
Direct
Overlapping Rates
Lewisville
Independent
School
Denton
District
County
Total
Direct &
Overlapping
Rates
2004
0.31581
0.13469
0.45050
1.7700
0.24717
2.4677
2005
0.31641
0.13409
0.45050
1.7700
0.25480
2.4753
2006
0.32107
0.13572
0.45679
1.7700
0.24648
2.4733
2007
0.32184
0.13495
0.45679
1.6400
0.23192
2.3287
2008
0.32184
0.11866
0.44050
1.3700
0.23589
2.0464
2009
0.32156
0.11865
0.44021
1.3800
0.23577
2.0560
2010
0.32156
0.11865
0.44021
1.4087
0.24980
2.0987
2011
0.32289
0.11732
0.44021
1.4267
0.27390
2.1408
2012
0.32289
0.11732
0.44021
1.4260
0.27736
2.1436
2013
0.32289
0.11732
0.44021
1.4530
0.28287
2.1761
Source: City of Lewisville, Denton County Tax Assessor
130
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
(Unaudited)
TABLE-7
2013
2004
Taxable
Assessed
Valuation
Taxpayer
Digital Lewisville LLC
Taxable
Assessed
Valuation
Taxpayer
94,943,258
1.47%
Verizon Southwest
Vista Ridge Joint Venture
66,948,339
1.04%
Alcatel-Lucent USA Inc
63,483,991
TIC Lago Vista LP etal
1.46%
Southwest Prop LP P/S
59,241,288
1.18%
0.98%
Teachers Insurance Annuity Association
52,121,567
1.04%
51,699,375
0.80%
Vista Ridge Joint Venture
44,873,885
0.90%
Bella Madera Apartments LLC
44,027,483
0.68%
Columbia Medical Center Lewisville
39,725,510
0.79%
Teachers Insurance Annuity Assoc
43,347,722
0.67%
Texas New Mexico Power Company
39,365,633
0.79%
Columbia Medical Center Lewisville
39,572,557
0.61%
Vista Ridge OP&F Inc
36,467,166
0.73%
Verizon Southwest
38,550,790
0.60%
Kir Lewisville LP P/S
34,749,158
0.69%
GRE Vista Ridge LP
38,500,000
0.60%
DDR Lakepointe Crossing LLC
26,408,433
0.53%
DFW Lewisville Partners Group
37,453,194
0.58%
Realty Association Fund IV LP
26,146,395
0.52%
$ 518,526,709
8.03%
$ 431,977,261
8.63%
TOTAL
Source: Denton Central Appraisal District
131
$
Percentage
of Total City
Taxable
Assessed
Value
72,878,226
TOTAL
$
Percentage
of Total City
Taxable
Assessed
Value
PROPERTY TAX LEVIES AND COLLECTIONS
(Unaudited)
Adjustments
to Levy in
Subsequent
Years
TABLE-8
Fiscal
Year
Taxes Levied
Within the
Fiscal Year
of the Levy
Adjusted
Taxes Levied
for the
Fiscal Year
2004
22,831,246
57,486
22,888,732
22,541,885
98.73%
294,884
22,836,769
99.77%
2005
23,542,373
42,500
23,584,873
23,292,813
98.94%
249,040
23,541,853
99.82%
2006
25,246,156
(26,081)
25,220,075
24,949,844
98.83%
227,709
25,177,553
99.83%
2007
26,677,093
30,356
26,707,449
26,470,497
99.23%
199,327
26,669,824
99.86%
2008
28,264,833
(27,972)
28,236,861
28,029,846
99.17%
173,138
28,202,984
99.88%
2009
29,966,864
(58,630)
29,908,234
29,762,422
99.32%
94,127
29,856,549
99.83%
2010
29,389,678
(121,823)
29,267,855
29,115,450
99.07%
97,493
29,212,943
99.81%
2011
28,228,960
7,401
28,236,361
28,084,210
99.49%
107,571
28,191,781
99.84%
2012
28,925,178
(22,432)
28,902,746
28,814,980
99.62%
31,812
28,846,792
99.81%
2013
29,949,696
-
29,949,696
29,838,761
99.63%
-
29,838,761
99.63%
Collected Within the
Fiscal Year of the Levy
Percentage of
Amount
Fiscal Year Levy
Source: Denton County Appraisal District and Denton County Tax Office
132
Collections
in Subsequent
Years
Total Collections to Date
Percentage of
Amount
Adjusted Levy
GROSS SALES BY CATEGORY
Last Ten Calendar Years
(Unaudited)
Calendar Year
2004
Construction
$
2005
269,407,092
$
2006
271,345,345
$
2007
325,521,361
$
428,975,430
Manufacturing
577,502,805
651,749,063
891,564,228
829,222,026
Transportation, Warehousing
495,269,595
355,601,064
22,331,869
25,941,784
Wholesale Trade
334,301,142
374,468,902
492,483,851
546,277,231
1,844,092,385
1,919,947,937
2,027,046,759
2,091,888,382
Finance, Insurance and Information
77,259,548
69,693,167
72,708,565
58,684,886
Real Estate, Rental and Leasing
32,156,100
54,857,322
39,287,358
55,201,502
Professional, Scientific and Technical Services
72,626,579
88,493,369
150,989,059
151,893,983
Admin, Support, Waste Mgmt, Remediation Services
97,175,211
200,665,461
292,811,541
158,959,087
Educational Services
1,221,464
1,300,212
3,510,020
7,222,172
Health Care and Social Assistance
4,280,367
5,698,121
5,586,377
5,232,521
Arts, Entertainment and Recreation
32,702,023
38,462,571
46,842,409
56,154,449
Accommodation and Food Services
165,856,056
178,596,005
199,071,846
203,938,455
76,483,948
76,126,157
81,208,086
91,832,953
78,305,983
$ 4,158,640,298
76,944,820
$ 4,363,949,516
79,133,007
$ 4,730,096,336
55,438,461
$ 4,766,863,322
Retail Trade
Other Services
Other, including industries with less than four entities
Total
City direct sales tax rate
1.25%
1.25%
1.25%
1.25%
Notes:
The Comptrollers Office is prohibited from releasing information as to the amount of sales of particular taxpayers in the State of Texas.
The Other category above represents those North American Industry Classification System (NAICS)categories with fewer than
four (4) taxpayers in an industry and industries with small gross sales.
Among the industries included in the Other category are Agriculture, Forestry, Fishing, Hunting, Mining, Quarrying, Oil and
Gas Extraction,Utilities, Management of Companies & Enterprises and Public Administration.
Source: Texas Comptroller of Public Accounts, quarterly historical reports of gross sales.
133
TABLE-9
Calendar Year
2008
$
2009
389,267,507
$
2010
426,073,490
$
2011
315,604,945
$
2012
508,276,308
$
2013
521,804,800
$
583,295,010
891,125,270
751,857,471
753,995,737
761,594,169
876,625,971
914,284,411
650,786,731
710,880,556
691,150,901
747,819,849
818,329,058
511,874,252
623,518,433
745,420,584
801,433,783
998,636,961
1,041,654,476
975,236,076
2,075,807,503
1,927,414,046
1,878,956,373
1,931,419,742
2,111,473,213
2,183,666,702
53,044,625
53,996,484
57,425,359
70,840,042
69,075,343
66,652,294
49,024,728
34,973,325
19,078,930
22,216,520
35,585,520
41,154,276
159,409,613
194,403,930
211,806,495
275,395,584
288,679,219
412,722,141
166,466,814
163,933,681
166,933,359
166,911,144
178,166,862
178,468,571
6,159,101
5,983,619
7,033,934
6,969,123
7,194,735
6,649,409
9,610,245
6,350,766
5,141,407
8,672,569
35,890,987
35,015,715
30,144,139
41,445,461
25,715,214
26,861,732
30,244,591
34,052,488
207,232,660
209,960,645
209,744,109
215,936,485
242,533,721
258,035,281
100,185,148
93,452,124
126,406,332
130,789,356
195,709,795
149,266,942
62,016,500
$ 5,473,799,017
56,823,976
$ 5,422,970,158
51,936,646
$ 5,322,363,524
55,951,821
$ 5,928,291,405
64,611,945
$ 6,517,580,236
64,288,526
$ 6,414,662,094
1.25%
1.25%
1.25%
1.25%
134
1.50%
1.50%
DIRECT AND OVERLAPPING SALES TAX RATES
(Unaudited)
TABLE-10
Overlapping
Rates
City Direct Rates
Fire Control,
Prevention, and
Emergency
Medical Services
District
Fiscal
Year
General
Fund
Parks and
Library
Development
Corporation
2004
1.00%
0.25%
-
-
0.50%
1.75%
2005
1.00%
0.25%
-
-
0.50%
1.75%
2006
1.00%
0.25%
-
-
0.50%
1.75%
2007
1.00%
0.25%
-
-
0.50%
1.75%
2008
1.00%
0.25%
-
-
0.50%
1.75%
2009
1.00%
0.25%
-
-
0.50%
1.75%
2010
1.00%
0.25%
-
-
0.50%
1.75%
2011
1.00%
0.25%
-
-
0.50%
1.75%
2012
1.00%
0.25%
0.125%
0.125%
0.50%
2.00%
2013
1.00%
0.25%
0.125%
0.125%
0.50%
2.00%
Crime Control
and Prevention
District
Denton Co.
Transit
Authority
Total
Direct &
Overlapping
Rates
Source: Texas Comptroller of Public Accounts
Notes:
The Lewisville Crime Control and Prevention District and the Lewisville Fire Control, Prevention, and Emergency Medical Services District
were created by the voters in November 2011. Each district's levy of a 1/8% sales tax took effect on April 1, 2012.
135
PRINCIPAL SALES TAX PAYERS
Current Year and Nine Years Ago
(Unaudited)
Calendar year 2013
Number
of Filers
OTHER
810
Discount Department Stores
9
Full-Service Restaurants
142
Department Stores (except Discount Department Stores)
17
Wireless Telecommunications carriers (except satellite)
59
Electric Power Distribution
50
Limited-Service Restaurants
102
Radio, Television, and Other Electronics Stores
33
Home Centers
4
General Warehouse and Storage
4
Industry
Total
Notes:
1,230
Percentage
of Total
8.91%
0.10%
1.56%
0.19%
0.65%
0.55%
1.12%
0.36%
0.04%
0.04%
Tax Liability
$ 2,247,632
1,759,722
1,518,688
1,113,890
886,871
858,629
845,333
573,367
522,344
501,396
Percentage of
Total
7.88%
6.17%
5.33%
3.91%
3.11%
3.01%
2.96%
2.01%
1.83%
1.76%
13.52%
$ 10,827,872
37.97%
The Comptrollers Office is prohibited from releasing information as to the amounts of sales
or use tax paid by a particular taxpayer in the State of Texas. Therefore, the categories presented
above are intended to provide alternative information regarding the sources of the City's
sales tax revenue. The OTHER category above represents those NAICS classifications with fewer
than four (4) taxpapers in a classification. In order to keep the identity of these taxpayers confidential,
classifications with fewer than four (4) taxpayers are combined as "OTHER" and represented
together as one classification.
Source: Texas Comptroller of Public Accounts
136
TABLE-11
Calendar Year 2004
Industry
OTHER
Department Stores (except Discount Department Stores)
Department Stores
Full-Service Restaurants
Home Centers
Hydroelectric Power Generation
Household Appliance Stores
Miscellaneous Retail Stores, Not Elsewhere Classified
Limited-Service Restaurants
Discount Department Stores
Number
of Filers
850
11
4
87
6
5
30
434
60
4
Percentage
of Total
11.04%
0.14%
0.05%
1.13%
0.08%
0.06%
0.39%
5.64%
0.78%
0.05%
Tax Liability
$ 2,285,098
1,206,787
1,063,299
987,176
930,147
812,460
601,861
538,875
522,122
516,542
Percentage
of Total
10.72%
5.66%
4.99%
4.63%
4.36%
3.81%
2.82%
2.53%
2.45%
2.42%
1,491
19.36%
$ 9,464,367
44.39%
Total
137
COMBINED SCHEDULE OF BONDS
September 30, 2013
(Unaudited)
Issue
General Obligation BondsSeries 2004
Series 2005 Refunding & Improvement
Series 2006
Series 2008
Series 2009
Series 2010 Refunding
Series 2011 Refunding
Series 2013
Rates
Interest
Payment Dates
Date
Issued
Maturity
Annual Serial
Payments
4.13 - 4.13
4.00 - 5.00
4.00 - 5.00
4.00 - 5.00
4.00 - 4.38
3.00 - 4.25
2.67 - 2.67
2.00 - 2.00
2.00 - 4.00
1.50 - 5.00
02/15 & 08/15
02/15 & 08/15
02/15 & 08/15
02/15 & 08/15
02/15 & 08/15
02/15 & 08/15
02/15 & 08/15
02/15 & 08/15
02/15 & 08/15
02/15 & 08/15
06/01/04
04/15/05
05/15/06
05/15/07
05/15/08
06/01/09
03/01/10
04/01/11
05/15/12
05/15/13
02/15/2014
02/15/2021
02/15/2022
02/15/2023
02/15/2024
02/15/2025
02/15/2019
02/15/2014
02/15/2028
02/15/2029
450,000
365,000
415,000
980,000
405,000
265,000
600,000
545,000
90,000
255,000
450,000
1,410,000
595,000
2,235,000
830,000
405,000
895,000
545,000
2,685,000
1,055,000
3.00 - 5.25
4.00 - 5.00
4.00 - 5.00
02/15 & 08/15
02/15 & 08/15
02/15 & 08/15
06/01/04
05/15/07
05/15/07
02/15/2024
02/15/2032
02/15/2027
980,000
530,000
205,000
980,000
1,195,000
980,000
4.00 - 5.00
4.00 - 4.63
02/15 & 08/15
02/15 & 08/15
04/15/05
05/15/06
02/15/2021
02/15/2022
290,000
240,000
-
1,235,000
340,000
Series 2008
3.88 - 4.25
02/15 & 08/15
05/15/08
02/15/2024
515,000
-
775,000
Series 2009
2.75 - 4.30
02/15 & 08/15
06/01/09
02/15/2025
645,000
-
975,000
3.00 - 5.00
02/15 & 08/15
04/01/11
02/15/2027
565,000
-
1,220,000
Total General Obligation Bonds
Certificates of ObligationSeries 2004
Series 2007A
Series 2007B
Total Certificates of Obligation
Revenue BondsSeries 2005 Refunding & Improvement
Series 2006
2.00 - 4.00
02/15 & 08/15
05/15/12
02/15/2028
245,000
-
595,000
Series 2013
1.00 - 5.00
02/15 & 08/15
05/15/13
02/15/2029
245,000
-
430,000
Total Revenue Bonds
Total Bonds Payable
NC = Non-Callable
CC = Currently Callable
138
TABLE-12
Bonds
Retired/
Defeased
Issued
Outstanding
Principal
Interest
Option
Date
6,860,000
14,445,000
6,805,000
18,725,000
8,715,000
5,430,000
9,600,000
1,605,000
25,750,000
12,455,000
6,410,000
8,730,000
2,320,000
3,965,000
1,430,000
1,475,000
5,490,000
1,060,000
-
450,000
5,715,000
4,485,000
14,760,000
7,285,000
3,955,000
4,110,000
545,000
25,750,000
12,455,000
450,000
1,410,000
415,000
1,375,000
455,000
265,000
895,000
545,000
90,000
255,000
9,281
234,728
195,986
671,050
293,006
145,100
97,789
5,450
998,850
498,253
110,390,000
30,880,000
79,510,000
6,155,000
3,149,493
23,690,000
18,180,000
8,040,000
22,710,000
2,770,000
465,000
980,000
15,410,000
7,575,000
980,000
530,000
205,000
24,500
694,609
334,941
49,910,000
25,945,000
23,965,000
1,715,000
1,054,050
11,475,000
4,000,000
6,855,000
1,430,000
4,620,000
2,570,000
1,235,000
240,000
183,013
108,123
02/15/15
02/15/16
10,300,000
3,305,000
6,995,000
515,000
275,144
02/15/18
11,900,000
2,430,000
9,470,000
645,000
350,673
02/15/19
13,465,000
2,000,000
11,465,000
1,020,000
429,675
02/15/21
5,925,000
200,000
5,725,000
500,000
171,831
02/15/22
5,205,000
245,000
194,598
02/15/23
46,050,000
4,400,000
1,713,057
5,205,000
-
62,270,000
$
Requirements Fiscal
Year Ended
September 30, 2013
222,570,000
16,220,000
$
73,045,000
$
149,525,000
$
12,270,000
139
$
5,916,600
02/15/14
02/15/15
02/15/16
02/15/17
02/15/18
02/15/19
CC
NC
02/15/22
02/15/23
02/15/14
02/15/17
02/15/17
RATIO OF OUTSTANDING DEBT BY TYPE
(Unaudited)
TABLE-13
Governmental Activities Business-Type Activities
Fiscal
Year
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Notes:
General
Obligation
Bonds
49,216,146
49,213,197
51,330,000
59,515,000
63,235,000
63,460,000
64,810,000
58,235,000
73,405,000
79,510,000
Certificates
of
Obligation
23,690,000
23,170,000
19,955,000
45,175,000
43,975,000
42,730,000
41,445,000
40,090,000
25,575,000
23,965,000
Water and
Sewer Revenue
Bonds
54,340,000
51,635,000
49,300,000
42,510,000
46,190,000
53,115,000
40,740,000
45,780,000
45,220,000
46,050,000
Total
Primary
Government
127,246,146
124,018,197
120,585,000
147,200,000
153,400,000
159,305,000
146,995,000
144,105,000
144,200,000
149,525,000
Percentage
of Personal
Income*
Per
Capita*
6.40%
5.92%
4.95%
5.47%
6.14%
6.27%
5.23%
5.12%
5.79%
5.39%
1,480
1,404
1,353
1,608
1,652
1,693
1,543
1,511
1,502
1,503
Details regarding the City's outstanding debt can be found in the notes to the financial statements and on Table 12.
*See Table 17 for personal income and population data.
140
RATIO OF NET GENERAL BONDED DEBT OUTSTANDING
(Unaudited)
TABLE-14
General Bonded Debt Outstanding
Fiscal
Year
General
Obligation
Bonds
Certificates
of
Obligation
Total
Less Available
Debt Service
Funds
Net General
Bonded
Debt
Percentage of
Taxable Assessed
Value of Property*
Per
Capita**
2004
49,216,146
23,690,000
72,906,146
3,574,856
69,331,290
1.39%
807
2005
49,213,197
23,170,000
72,383,197
3,595,602
68,787,595
1.33%
779
2006
51,330,000
19,955,000
71,285,000
1,654,816
69,630,184
1.31%
781
2007
59,515,000
45,175,000
104,690,000
2,065,205
102,624,795
1.88%
1,121
2008
63,235,000
43,975,000
107,210,000
2,063,119
105,146,881
1.71%
1,132
2009
63,460,000
42,730,000
106,190,000
2,157,818
104,032,182
1.59%
1,106
2010
64,810,000
41,445,000
106,255,000
1,575,726
104,679,274
1.64%
1,099
2011
58,235,000
40,090,000
98,325,000
1,270,236
97,054,764
1.60%
1,017
2012
73,405,000
25,575,000
98,980,000
1,456,703
97,523,297
1.56%
1,016
2013
79,510,000
23,965,000
103,475,000
1,622,886
101,852,114
1.57%
1,024
Notes:
Details regarding the City's outstanding debt can be found in the notes to the financial statements.
No general obligation debt limitation is imposed on the City under current State law or the City's Home Rule Charter.
* See Table 5 for property value data.
** See Table 17 for population data.
141
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
As of September 30, 2013
(Unaudited)
Government Unit
TABLE-15
Debt
Outstanding
Estimated
Share of
Overlapping
Debt
Estimated
Percentage
Applicable
Debt repaid with property taxes
Lewisville Independent School District
Coppell Independent School District
Denton County
Dallas County
Dallas County Community College District
Dallas County Hospital District
Dallas County Schools
Denton County Levee Improvement District #1
Denton County RUD #1
$ 1,113,538,429
174,797,888
596,245,000
136,430,000
355,880,000
705,000,000
67,675,000
9,780,000
-
27.89%
0.72%
12.06%
0.03%
0.03%
0.03%
0.03%
69.21%
0.00%
$
Subtotal, overlapping debt
310,565,868
1,258,545
71,907,147
40,929
106,764
211,500
20,303
6,768,738
390,879,793
103,475,000
City of Lewisville (direct debt)
100.00%
103,475,000
$
Total direct and overlapping debt
494,354,793
Source: Non-City debt information provided by First Southwest Company and the Municipal Advisory Council of Texas (MAC)
Notes: MAC calculates the overlapping percentages by determining the estimated shared assessed valuations of the overlapping taxing
bodies and the City and then by dividing that shared value by the total assessed value of the overlapping taxing body.
142
PLEDGED-REVENUE COVERAGE
(Unaudited)
Fiscal
Year
Total
Revenues
TABLE-16
Less:
Operating
Expenses
Waterworks and Sewer System Revenue Bonds
Net
Average
Available
Annual
Times
Revenue
Requirement
Coverage
Maximum
P&I
Requirement
Times
Coverage
2004
23,973,197
11,605,378
12,367,819
4,583,375
2.698
9,168,901
1.349
2005
25,215,347
12,002,786
13,212,561
4,041,010
3.270
8,520,251
1.551
2006
30,306,218
13,484,511
16,821,707
3,855,683
4.363
8,855,999
1.899
2007
28,553,142
13,205,679
15,347,463
3,522,329
4.357
7,424,561
2.067
2008
29,198,493
13,715,038
15,483,455
3,629,359
4.266
6,919,927
2.238
2009
27,978,220
14,157,311
13,820,909
4,191,171
3.298
7,498,648
1.843
2010
27,321,265
14,294,307
13,026,958
3,408,059
3.822
5,512,848
2.363
2011
29,627,081
16,082,970
13,544,111
3,584,741
3.778
6,189,089
2.188
2012
29,773,149
15,333,608
14,439,541
3,498,676
4.127
6,060,147
2.383
2013
29,996,994
15,253,780
14,743,214
3,559,577
4.142
6,113,056
2.412
Source: Comprehensive Annual Financial Reports and Fiscal Year Operating Budgets
143
DEMOGRAPHIC AND ECONOMIC STATISTICS
Last Ten Calendar Years
(Unaudited)
Year
Estimated
Population
Personal
Income
(thousands
of dollars)
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
85,950
88,350
89,100
91,550
92,850
94,070
95,290
95,390
96,000
99,453
1,989,405
2,093,188
2,437,241
2,691,387
2,497,665
2,542,430
2,811,055
2,814,005
2,491,392
2,775,137
TABLE-17
Per
Capita
Personal
Income
23,146
23,692
27,354
29,398
26,900
27,027
29,500
29,500
25,952
27,904
Median
Age
31.6
32.3
32.6
30.6
31.4
32.5
32.5
32.5
32.2
School
Enrollment
Unemployment
Rate
13,272
13,513
13,676
14,702
15,233
15,780
15,678
16,084
17,238
17,619
3.7%
4.1%
4.0%
3.6%
4.0%
6.7%
6.4%
6.7%
5.1%
4.9%
Sources: Estimated population provided by the North Central Texas Council of Governments; US Census population used in census years.
Personal income (total effective buying income) provided yearly from Sales and Marketing Management, "Survey of Buying Power."
Beginning in 2005, per capita income provided by the American Community Survey.
Current year personal income estimated from 2012 amount.
School enrollment (for schools located in Lewisville) provided by Lewisville Independent School District.
Unemployment rates provided on the Texas Workforce Commission website, annual rate, current year estimated as of September.
Median age, previously, only available in census years. Beginning 2005, provided by the American Community Survey.
Current year median age estimated from 2012 amount.
144
PRINCIPAL EMPLOYERS
Current Year and Nine Years Ago
(Unaudited)
TABLE-18
2013
Employer
2004
Employees
Percentage
of Total City
Employment
JP Morgan Chase
(Lewisville employment only)
Vista Ridge Mall (all outlets)
Nationstar Mortgage
Wal-Mart (all City locations)
Xerox
Medical Center of Lewisville
City of Lewisville
Ally
Orthofix
4,350
7.64%
2,061
1,980
1,440
845
800
750
725
700
596
Total
14,247
Employer
3.62%
3.48%
2.53%
1.48%
1.41%
1.32%
1.27%
1.23%
1.05%
Vista Ridge Mall (all outlets)
(Lewisville employment only)
Centex Home Equity
Xerox Corporation
Medical Center of Lewisville
SYSCO Foods
Household Automotive Finance
City of Lewisville
Wal-Mart
Huffines Auto Group
25.03%
Total
Employees
Percentage
of Total City
Employment
2,288
4.47%
1,803
1,400
1,318
800
750
700
631
430
375
3.52%
2.74%
2.58%
1.56%
1.47%
1.37%
1.23%
0.84%
0.73%
10,495
20.51%
Source: City of Lewisville Economic Development & Budget Departments, Texas Workforce Commission, North Central Texas Council of Governments
145
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY
FUNCTION / PROGRAM
(Unaudited)
Function/Program
Administration and Legal
2004
2005
2006
TABLE-19
2007
Fiscal Year
2008
2009
2010
2011
2012
2013
55.0
59.0
62.0
64.0
67.0
68.0
67.0
68.0
68.0
68.0
Public Safety
324.0
325.0
338.0
341.0
350.0
349.0
348.0
349.0
359.0
384.0
Public Services
123.0
123.0
124.0
123.0
124.0
126.0
123.0
123.0
123.0
123.0
61.0
63.0
62.0
63.0
63.0
66.0
64.0
65.0
68.0
69.0
Parks and Leisure
68.0
67.0
71.0
71.0
72.0
72.0
78.0
81.0
81.0
81.0
631.0
637.0
657.0
662.0
676.0
681.0
680.0
686.0
699.0
725.0
Total
`
Source: City Budget Office, authorized positions
146
OPERATING INDICATORS BY FUNCTION/PROGRAM
(Unaudited)
Fiscal Year
2004
General government
Public Records
Number of telephone information requests
Birth and death certificates issued
Parks and Leisure
Number registered for recreation programs
Public swim admissions
Library visits
Library volumes circulated
Lake Park day use area attendance
Public safety
Police
Calls for service
Part 1 crimes
Number of accidents
2005
2006
2007
8,743
5,490
11,747
6,398
17,879
6,141
12,953
6,896
3,912
21,292
297,676
495,406
110,572
2,723
55,329
295,255
463,666
171,007
2,749
63,915
291,141
447,449
160,113
3,752
59,422
398,160
719,620
119,781
62,597
4,478
2,870
63,570
4,305
2,838
63,813
3,610
2,863
61,949
3,238
2,695
2,910
4,674
2,909
5,153
3,258
5,373
3,098
5,557
1,475
319
426
1,279
420
81
1,225
709
83
1,211
457
100
922
844
948
766
19,630
12.43
32
73
19,955
13.86
38
93
20,560
16.04
38
212
20,781
13.35
38
106
12
12
15
15
31,846
120,535
27,523
112,205
27,691
104,929
28,765
108,242
Fire
Number of fire incidents
Number of EMS incidents
Public services
Public Services
Concrete paving repair (cubic yards)
Concrete utility cut repair (cubic yards)
Asphalt pothole repair (tons)
Building permits issued
Municipal Water System
Number of customers (meters)
Average daily water consumption (MGD)
System capacity (MGD)
Number of water main breaks
Sewer System
System treatment capacity (MGD)
Sanitation (residential)
Residential refuse collected (tons)
Commercial refuse collected (tons)
Source: City Departments
Notes:
The decrease in tonnage for pothole repairs is due to the volume of asphalt street rehabilitation projects completed
from 2003-2005. In the summer of 2005, the City's two existing pools were remodeled to water parks with
pools and related amenities. For 2007, Lake Park attendance was down due to park being closed two summer
months due to flooding. The Library was expanded during the 2006 and 2007 fiscal years. The System
capacity of the municipal water system increased 15MGD with the Midway Pump Station in 2012.
147
TABLE-20
Fiscal Year
2008
2009
2010
2011
2012
12,074
6,455
13,868
6,336
13,138
4,691
12,169
3,540
9,627
2,917
8,007
2,569
4,412
51,322
398,568
766,182
193,690
4,336
48,028
383,836
815,191
191,721
5,277
43,888
451,015
774,629
131,667
7,459
42,021
424,079
692,066
127,382
6,591
39,304
403,308
686,804
137,507
7,070
38,672
377,915
637,083
140,626
66,358
3,577
2,482
74,658
4,039
2,458
66,751
4,038
2,409
61,514
3,448
2,318
63,014
3,272
2,490
58,675
2,903
2,457
3,007
5,771
3,246
6,088
3,107
6,069
3,395
6,529
3,083
6,855
3,206
6,622
1,187
415
54
966
393
38
830
221
78
716
306
39
694
300
88
500
284
209
698
552
509
439
379
520
21,233
14.71
38
120
21,987
14.75
38.4
113
21,912
14.44
38.4
75
21,342
16.84
38.4
96
21,427
16.06
53.4
99
21,662
15.11
53.4
105
15
15
15
15
15
15
27,528
107,798
27,732
106,084
27,179
109,773
25,302
104,528
25,418
76,119
26,119
73,589
148
2013
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
(Unaudited)
Fiscal Year
2004
2005
2006
2007
Function/Program
Parks and Leisure
Number of Parks
Parks (acres)
Swimming Pools
Lighted Athletic Fields
Lighted Tennis Courts
Recreation Centers
Senior Citizens Center
Public safety
Police Stations
Police Vehicles
Fire Stations
Public services
Public Services
Streets - Paved (miles)
Alleys - Paved (miles)
Number of Street Lights
Water and Sewer
Water Mains (miles)
Fire Hydrants
Sanitary Sewer (miles)
32
1,240
2
23
4
2
1
32
1,240
2
23
4
2
1
32
1,240
2
23
4
2
1
32
1,240
2
23
4
2
1
1
N/A
6
1
N/A
6
1
85
6
1
95
6
538
80
2,600
565
83
2,600
573
85
2,600
573
85
2,600
N/A
N/A
N/A
N/A
N/A
N/A
385
2,295
305
387
2,376
307
Source: City Departments
Notes:
N/A - Data not available.
In recent years, Public Services has been utilizing more accurate technology, such as GPS,
for the statistics provided.
149
TABLE-21
Fiscal Year
2008
2009
2010
2011
2012
2013
32
1,240
2
23
4
2
1
33
1,240
2
37
4
2
1
33
1,240
2
37
4
2
1
33
1,240
2
37
4
2
1
33
1,240
2
37
4
2
1
33
1,240
2
37
4
2
1
1
94
6
1
96
7
1
94
7
1
95
7
1
93
7
1
96
7
571
85
2,600
571
85
2,773
573
85
2,983
573
85
2,911
573
91
2,894
650
97
2,898
390
3,096
310
393
3,188
312
397
3,261
315
381
3,110
318
381
3,105
318
381
3,079
318
150
FEDERAL SINGLE AUDIT REPORTS
CONTENTS
Page
Independent Auditor's Report on Internal Control over Financial Reporting
and on Compliance and Other Matters Based on an Audit of Financial
Statements Performed in Accordance with Government Auditing Standards
1
Independent Auditor's Report on Compliance for Each Major Program, on
Internal Control over Compliance, and on the Schedule of Expenditures
of Federal Awards Required by OMB Circular A-133
3
Schedule of Findings and Questioned Costs
6
Summary of Prior Audit Findings
9
Schedule of Expenditures of Federal Awards
10
Notes to Schedule of Expenditures of Federal Awards
11
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT
AUDITING STANDARDS
The Honorable Mayor and City Council
We have audited, in accordance with the auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards issued by the Comptroller General of the United States, the financial
statements of the governmental activities, the business-type activities, the aggregate discretely
presented component units, each major fund, and the aggregate remaining fund information of
City of Lewisville, Texas (the City), as of and for the year ended September 30, 2013, and the
related notes to the financial statements, which collectively comprise the City’s basic financial
statements and have issued our report thereon dated March 12, 2014.
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.
Our consideration of internal control was for the limited purpose described in the first paragraph
of this section and was not designed to identify all deficiencies in internal control that might be
material weaknesses or significant deficiencies and therefore, material weaknesses or
significant deficiencies may exist that were not identified. 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. We did
identify a certain deficiency in internal control, described in the accompanying schedule of
findings and questioned costs as Finding 13-01 that we consider to be a significant deficiency.
1
Page 2
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are
free of 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.
City’s Response to Findings
The City’s response to the findings identified in our audit is described in the accompanying
schedule of findings and questioned costs. The City’s response was not subjected to the
auditing procedures applied in the audit of the financial statements and, accordingly, we express
no opinion on it.
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.
WEAVER AND TIDWELL, L.L.P.
Dallas, Texas
March 12, 2014
2
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM,
ON INTERNAL CONTROL OVER COMPLIANCE, AND ON THE SCHEDULE OF
EXPENDITURES OF FEDERAL AWARDS REQUIRED BY OMB CIRCULAR A-133
The Honorable Mayor and City Council
Report on Compliance for Each Major Federal Program
We have audited the City of Lewisville, Texas (the City)’s compliance with the types of
compliance requirements described in the OMB Circular A-133 Compliance Supplement that
could have a direct and material effect on each of the City’s major federal programs for the year
ended September 30, 2013. The City’s major federal programs are identified in the summary of
auditor’s results section of the accompanying schedule of findings and questioned costs.
Management’s Responsibility
Management is responsible for compliance with the requirements of laws, regulations,
contracts, and grants applicable to its federal programs.
Auditor’s Responsibility
Our responsibility is to express an opinion on compliance for each of the City’s major federal
programs based on our audit of the types of compliance requirements referred to above. We
conducted our audit of compliance in accordance with auditing standards generally accepted in
the United States of America; the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States; and
OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those
standards and OMB Circular A-133 require that we plan and perform the audit to obtain
reasonable assurance about whether noncompliance with the types of compliance requirements
referred to above that could have a direct and material effect on a major federal program
occurred. An audit includes examining, on a test basis, evidence about the City’s compliance
with those requirements and performing such other procedures as we considered necessary in
the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each
major federal program. However, our audit does not provide a legal determination of the City’s
compliance.
Opinion on Each Major Federal Program
In our opinion, the City complied, in all material respects, with the types of compliance
requirements referred to above that could have a direct and material effect on its major federal
program for the year ended September 30, 2013.
3
Page 4
Report on Internal Control Over Compliance
Management of the City is responsible for establishing and maintaining effective internal control
over compliance with the types of compliance requirements referred to above. In planning and
performing our audit of compliance, we considered the City’s internal control over compliance
with the types of requirements that could have a direct and material effect on each major federal
program to determine the auditing procedures that are appropriate in the circumstances for the
purpose of expressing an opinion on compliance for each major federal program and to test and
report on internal control over compliance in accordance with OMB Circular A-133, but not for
the purpose of expressing an opinion on the effectiveness of internal control over compliance.
Accordingly, we do not express an opinion on the effectiveness of the City’s internal control over
compliance.
A deficiency in internal control over compliance exists when the design or operation of a control
over compliance does not allow management or employees, in the normal course of performing
their assigned functions, to prevent, or detect and correct, noncompliance with a type of
compliance requirement of a federal program on a timely basis. A material weakness in internal
control over compliance is a deficiency, or combination of deficiencies, in internal control over
compliance, such that there is a reasonable possibility that material noncompliance with a type
of compliance requirement of a federal program will not be prevented, or detected and
corrected, on a timely basis. A significant deficiency in internal control over compliance is a
deficiency, or a combination of deficiencies, in internal control over compliance with a type of
compliance requirement of a federal program that is less severe than a material weakness in
internal control over compliance, yet important enough to merit attention by those charged with
governance.
Our consideration of internal control over compliance was for the limited purpose described in
the first paragraph of this section and was not designed to identify all deficiencies in internal
control over compliance that might be material weaknesses or significant deficiencies. We did
not identify any deficiencies in internal control over compliance that we consider to be material
weaknesses. However, material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of
our testing of internal control over compliance and the results of that testing based on the
requirements of OMB Circular A-133. Accordingly, this report is not suitable for any other
purpose.
4
Page 5
Report on Schedule of Expenditures of Federal Awards Required by OMB Circular A-133
We have audited the financial statements of the governmental activities, business-type
activities, the aggregate discretely presented component units, each major fund and the
aggregate remaining fund information of the City of Lewisville, as of and for the year ended
September 30, 2013, and the related notes to the financial statements, which collectively
comprise the City’s basic financial statements. We have issued our report thereon dated
March 12, 2014 which contained unmodified opinions on those financial statements. Our audit
was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the basic financial statements. The accompanying schedule of expenditures of federal
awards is presented for purposes of additional analysis as required by OMB Circular A-133 and
is not a required part of the basic financial statements. Such information is the responsibility of
management and was derived from and relates directly to the underlying accounting and other
records used to prepare the basic financial statements. The information has been subjected to
the auditing procedures applied in the audit of the financial statements and certain additional
procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the basic financial statements or to the basic
financial statements themselves, and other additional procedures in accordance with auditing
standards generally accepted in the United States of America. In our opinion, the schedule of
expenditures of federal awards is fairly stated in all material respects in relation to the basic
financial statements as a whole.
WEAVER AND TIDWELL, L.L.P
Dallas, Texas
March 12, 2014
5
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED SEPTEMBER 30, 2013
I. Summary of the Auditor's Results:
Financial Statements
a. An unmodified opinion was issued on the financial statements.
b. Internal control over financial reporting:
Material weakness(es) identified?
Yes
Significant deficiency(ies) identified that are not
considered a material weakness?
c. Noncompliance material to financial
statements noted
X
X
Yes
No
None Reported
Yes
X No
Material weakness(es) identified?
Yes
X No
Significant deficiency (ies) identified that are not
considered a material weakness?
reported
Yes
X None Reported
Major Programs
d. Internal control over major programs:
e. An unmodified opinion was issued on compliance for major programs.
f.
Any audit findings disclosed that were required to be
reported under Section 510(a) or OMB Circular
A-133.
Yes
X No
g. Identification of major program:
Program/Cluster Name
CDBG Progam
CFDA #
14.218
h. The dollar threshold used to distinguish between type
$ 300,000
A and type B programs.
i.
Auditee qualified as a low-risk auditee.
6
Yes
X No
II. Findings Relating to the Financial Statements Which Are Required To Be Reported in
Accordance with Generally Accepted Government Auditing Standards.
Finding 13-01
Improve Controls over Fire Department Payroll
Type: Internal control finding.
Criteria: Internal controls over payroll are necessary to help ensure that only authorized
charges for time worked are recorded in the City’s general ledger.
Condition: Key control activities involving Fire Department payroll are not functioning as
intended and monitoring of these activities is not occurring.
Context: During our testing of controls over payroll, we noted that none of the eleven Fire
Department employees selected for testing completed timesheets, which are required to be
completed and signed by each employee and reviewed and signed by the employee’s
supervisor, as called for under Administrative Directive 2.8.4.
Cause: Fire Department employees have not been recording their time on timesheets and
Human Resources has not been performing monitoring activities as called for in the
Directive. Instead, the Fire Department has been utilizing shift attendance forms, which are
not signed by the employee or their supervisor.
Effect: There is an increased risk that unauthorized or erroneous payroll charges could be
incurred by the City and recorded in the general ledger.
Recommendation: The City should improve controls over payroll and ensure that the
monitoring called for in Administrative Directive 2.8.4 occurs on a regular basis.
Management Response: The Fire Department is creating a time sheet that will be signed by
both the employee and the employee’s supervisor. In addition, the City of Lewisville is
converting payroll systems effective August 2014. The new system includes a time and
attendance program integrated with payroll. This system provides the capability to use
electronic time sheets that offer employees and supervisors the ability to approve the
submitted time using an electronic signature.
The Human Resources Department has also implemented an internal policy which includes
a quarterly audit of employee time sheets. The first audit is scheduled for the end of March
2014.
7
III. Findings and Questioned Costs for Federal Awards Including Audit Findings as
Described in I.f Above
None
8
SCHEDULE OF PRIOR AUDIT FINDINGS
IV. Summary of Prior year Findings.
None
9
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Federal and State/
Pass-Through Grantor/
Program Title
Federal
CFDA
Number
U.S. ENVIRONMENTAL PROTECTION AGENCY
Brownfield Assessment Program/Petroleum
Brownfield Assessment Program/Hazardous Materials
66.818
66.818
Federal
Expenditures
Grant Number
BF-96695301-0
BF-96696101-0
$
Total U.S. Environmental Protection Agency
84,306
106,773
191,079
U.S. DEPARTMENT OF HOMELAND SECURITY:
Passed Through Governor's Division of Emergency Management
HSGP/UASI (2012)
HSGP (2010)
HSGP//UASI/UASI LETPA (2011)
Assistance to Firefighters Grant (2011)
97.008
97.073
97.067
97.044
EMW-2012-SS-00018-S01
2010-SS-T0-0008
EMW-2011-SS-00019
EMW-2011-FO-09099
61,589
20,472
119,345
99,612
Total U.S. Department of Homeland Security
301,018
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT:
CDBG Program
CDBG Program
14.218
14.218
B-10-MC-48-0039
B-11-MC-48-0039
266,006
484,847
Total U.S. Department of Housing and Urban Development
750,853
U. S. DEPARTMENT OF JUSTICE:
Passed Through the Office of Justice Programs
Edward Byrne Memorial JAG Program 2011
Edward Byrne Memorial JAG Program 2012
Edward Byrne Memorial JAG Program - SOAP
Bulletproof Vest Partnership
16.738
16.738
16.738
16.607
2011-H5567-TX-DJ
2012-H1744-TX-DJ
DJ-10-A10-24607-02
2013BUBX13067997
16,320
15,029
10,780
13,966
16.588
WF-10-V30-23610-03
57,183
Passed Through the Texas Governor's Office - Criminal
Justice Division
Family Violence
Total U.S. Department of Justice
113,278
U.S. DEPARTMENT OF TRANSPORTATION:
Passed Through the Texas Department Of Transportation
Step CIOT
Step Speed
Step IDM
Highway Planning and Construction Cluster
Texas Department of Transportation - Main Street
Texas Department of Transportation - SH-121 Business
20.600
20.600
20.601
2013-LewisvPD-CIOT-00024
2013-LewisvPD-S-1YG-0096
2013-LewisvPD-IDM-00012
5,961
44,080
10,117
20.205
20.205
CSJ: 1311-01-050
CSJ: 0364-03-093
24,728
25,916
Total U.S. Department of Transportation
110,802
Total Federal Financial Assistance
$
10
1,467,030
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
1. BASIS OF PRESENTATION
The City accounts for its grants in Special Revenue Funds. Special Revenue Funds are
governmental funds which can be used to account for resources restricted to, or
designated for, specific purposes by a grantor. Generally, unused balances are returned
to the grantor at the close of specified project periods.
The accompanying Schedule of Expenditures of Federal Awards includes the federal
grant activity of the City, and is presented on the modified accrual basis of accounting as
described in Note 1 to the basic financial statements for the year ended September 30,
2013.
2. AMOUNTS PASSED THROUGH THE SUBRECIPIENTS
Of the federal expenditures presented in the schedule, the City provided federal awards
to subrecipients as follows:
Program/Cluster Name
CDBG Progam
CFDA #
14.218
11
$
Amount
189,411
MEMORANDUM
TO:
FROM:
Eric Ferris, Director of Community Development
DATE:
March 17, 2014
SUBJECT:
Consideration of Variance Requests to the Lewisville City Code Section 6-92
(j) Turning Lanes, Section 6-123 (b) Landscape Strip, and Section 2-201 Fees,
Related to New Construction for the Lee Walker Government Center, as
Requested by Bobbie J. Mitchell, Denton County Commissioner Precinct 3,
Located at 190 North Valley Parkway.
BACKGROUND
Denton County is proposing to construct a new Government Center located on their existing
property on Valley Parkway. Two new buildings are proposed for the project. Phase One of the
project includes a 40,700 square foot building at the northwest corner of Valley Parkway and Civic
Circle. Phase Two of the project consists of a 26,450 square foot building to be constructed on the
southwest corner of Valley Parkway and Civic Circle. Phase Two will take place after demolition
of the existing building. An Engineering Site Plan has been submitted for Phase One and Two that
includes three variances: a) provide modified right turn lanes on Valley Parkway to Civic Circle
and Civic Circle to Valley Parkway, b) provide modified landscape strips along Valley Parkway
and along Civic Circle, and c) to waive development fees in the amount of $41,863.
Denton County representatives have indicated that their intent is to build Phase One on the north
side of Civic Circle first and then relocate personnel into that building from the existing buildings
on the south side of Civic. Once demolition of the south side buildings begins, Phase Two of the
project will go to construction.
ANALYSIS
The following variances are required for construction of Phase One and Two of the Lee Walker
Government Center:
Variance A: Provide modified right turn lanes on Valley Parkway to Civic Circle and
Civic Circle to Valley Parkway. Staff Comments: The proposed right turn lane from
Valley Parkway to Civic Circle is proposed at a total length of 156 feet in length as
opposed to 210 feet as outlined in the City Code. Stacking distance for this modified turn
lane is 110 feet with a 56 foot transition. A longer transition could not be achieved due to
the two requested driveways located north along the site frontage.
The proposed right turn lane from Civic Circle to Valley Parkway is approximately 114
feet in length as opposed to 210 feet in length. This turn lane could not be extended due to
the location of the main entry into the County site.
Subject: Fence Ordinance
March 17, 2014
Page 2 of 2
Staff has no major concerns with this request should Council wish to approve this request.
Variance B: Provide modified landscape strips along the north side of Valley Parkway
and along the south side of Civic Circle. Staff Comments: Ten foot landscape strips are
provided along Valley Parkway and Civic Circle as required by City Code except where
marked on the variance B exhibit (see attached). A small portion along Civic Circle and at
the intersection of Civic and Valley Parkway do not meet the 10 foot width requirement. In
addition, a 102 foot segment along Valley Parkway does not meet the 10 width requirement
as well. These reductions are mainly due to the requirement for the turn lanes on both
streets. Required parking is another reason for the requested variance. Both sites meet
requirements for landscaping except for these particular areas.
Due to the turn lanes, required parking, and considering that this is a redevelopment site for
the County, staff has no major concerns should Council wish to approve this request.
Variance C: To waive certain development fees in the amount of $41,863.00. Staff
Comments: A summary of required fees that are being requested to be waived are as
follows:
Building Permit Fees Phase 1
Building Permit Fees Phase 2
Plan Review Fees Phase 1
Plan Review Fees Phase 2
Fire Protection Permits
3.5% Eng. Insp Fees
Total Fees:
$11,803
$ 6,221
$ 5,116
$ 3,111
$ 2,500
$13,112
$41,863
On June 19, 1995, the City Council waived building permit and engineering inspection fees
related to the proposed Denton County Child Protective Services building located at the
northwest corner of Valley Parkway and Civic Circle.
RECOMMENDATION
It is City staff’s recommendation that the City Council approve the variances as set forth in the
caption above.
Bobbie J. Mitchell
DENTON COUNTY COMMISSIONER
PRECINCT 3
ESTABLISHED 1846
February 28, 2014 City of Lewisville 151 W. Church St Lewisville, Texas 75057 RE: Denton County Lewisville Government Center/ Lee Walker Government Center We are formally requesting that the building permit fees, plan review fees and inspection fees be waived for Denton County’s upcoming construction project. Denton County is another government entity which shares the same tax base with the City of Lewisville. This facility will better serve the citizens of Lewisville and the surrounding cities by replacing old buildings that are no longer efficient for providing services to the citizens.. As good neighbors, Denton County is making improvements on the City’s property and has not requested funds to do this work. The project budget is very thin and the money saved will go directly into the construction budget. By waiving the fees, we will be able to provide a better product for the citizens of Lewisville. Sincerely, Lee Walker Government Center*190 N. Valley Parkway, Suite 120. Lewisville, TX 75067*Metro 972‐434‐4780 Courthouse‐on‐the‐Square∙ 110 W. Hickory, Denton, TX 76201∙ Fax 972‐434‐4781 emai1: [email protected] MEMORANDUM
TO:
FROM:
Cleve Joiner, Building Official
VIA:
Eric Ferris, Director of Community Development
DATE:
March 17, 2014
SUBJECT:
Consideration of an Ordinance Amending the Lewisville City Code Chapter 4,
Article X Fences, Section 4-453 General Requirements Amending Certain
Single Family Residential Fence Configurations.
BACKGROUND
The City of Lewisville Fence Ordinance, Section 4-453 General Requirements and Restrictions (j)
states: No fence shall be constructed in the required front yard building setback area of R, DU,
TH, PH, OD or MD zoning districts, except that a decorative fence may be constructed to a height
no greater than 3½ feet above the finished lot grade and the solid area of such fence shall not
exceed 50 percent of the total. The following amendment is being requested: “Where a single
family residence on a corner lot has two front yards as required by city ordinance and the residence
is constructed facing one of the two front yards, the second front yard may be fenced in the same
manner as any other side yard provided that the adjoining lot does not have a residence that fronts
the same setback.”
A new fence diagram will accompany the change to demonstrate (attached).
ANALYSIS
The requirement for fencing within a front yard setback is only allowed if the fence is 3-1/2 feet in
height or less and 50% open. Basically, these fences are picket style or chain link. In the case of a
corner lot, a majority of lots zoned residential requiring two fronts have existing solid fences six
(6) to ten (10) feet in height that were either built prior to the zoning change, issued a permit in
error or built without a permit. Since the adoption of the 2012 Property Maintenance Code which
has more restriction as to the condition of existing fencing, the Code Enforcement Division has
been issuing notices for repair or replacement of aging or poorly maintained fencing. Currently
there are seven (7) fence replacement permit applications that have two fronts with one of the
(side) front yards fenced in pending the outcome of this ordinance change request. In most cases,
those residential properties would no longer have backyards for pets or children. Prior to this
request these cases would go before the Zoning Board of Adjustment (ZBOA). It is the opinion of
staff that there are going to be a number of these cases in the future due to enforcement efforts and
feel that it is not good business to issue notice while at the same time advise the owners an
additional application, fee and hearing need to take place before they repair the fences, along with
the possibility they may not get approval which will result in the loss of a yard they have been
using, all the while knowing that the neighboring property can fence in the entire side yards
without penalty or loss of a fenced area.
Subject: Fence Ordinance
March 17, 2014
Page 2 of 2
As stated in the proposed amendment, “when a house on a corner lot is constructed facing one of
two front yards, the second front yard may be fenced in the same manner as any other side yard
provided that the adjoining lot does not have a residence that fronts the same setback”. In that
case, the two fronts would not be allowed to be built upon with a solid fence. Any variance from
that would still go to the ZBOA for determination.
RECOMMENDATION
It is City staff’s recommendation that the City Council approve the ordinance as set forth in the
caption above.
q
a. Existing fence not in compliance
with current ordinance
b. Existing fence allowed by proposed
ordinance change
SCALE: 1''=20'
SE
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AP
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Existing fence as allowed
by current ordinance
LOCATION MAP
FOR
1131 SETTLERS WAY
SET
T
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SW
AY
ordinance change
ordinance change
GL
EN
IR
CA
D
AY
LW
SO
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LOCATION MAP
FOR
1625 SOLWAY DR
NL
N
q
SCALE: 1''=20'
ordinance change
ORDINANCE NO. ______________
OF
LEWISVILLE,
TEXAS,
AMENDING
THE
LEWISVILLE CITY CODE, CHAPTER 4, ARTICLE X,
FENCES, SECTION 4-453, GENERAL REQUIREMENTS &
RESTRICTIONS, ALLOWING RESIDENTIAL CORNER
LOTS WITH TWO FRONTS BY ZONING ORDINANCE TO
FENCE
IN
THE
SIDE
YARD
WITH
SOME
RESTRICTIONS; PROVIDING FOR A REPEALER;
PROVIDING FOR SEVERABILITY; PROVIDING A
PENALTY; PROVIDING AN EFFECTIVE DATE; AND
DECLARING AN EMERGENCY.
WHEREAS, the City Council of the City of Lewisville has determined that for
the health, welfare and safety of its citizens certain amendments to the Lewisville City Code,
Chapter 4, Article X., Fencing, are necessary;
CITY OF LEWISVILLE, TEXAS, THAT:
SECTION 1. Chapter 4, Article X., Section 4-453 (j) of the Lewisville City Code is
hereby amended by deleting the current language in its entirety and in its place inserting the
following new language:
No fence shall be constructed in the required front yard building setback area of
R, DU, TH, PH, OD or MD zoning districts, except that a decorative fence may
be constructed to a height no greater than 3½ feet above the finished lot grade and
the solid area of such fence shall not exceed 50 percent of the total. Where a
single family residence on a corner lot has two front yards as required by city
ordinance and the residence is constructed facing one of the two front yards, the
second front yard may be fenced in the same manner as any other side yard
provided that the adjoining lot does not have a residence that fronts the same
setback.
SECTION 2. REPEALER. Every ordinance or parts of ordinances found to be in
conflict herewith are hereby repealed.
ORDINANCE NO. ______________
Page 2
SECTION 3. SEVERABILITY. If any section, sentence, clause, or phrase of this
ordinance shall for any reason be held to be invalid, such decision shall not affect the validity of
the remaining sections, sentences, clauses, or phrases of this ordinance, but they shall remain in
effect.
SECTION 4. PENALTY. Any person, firm or corporation who violates any provisions
of this Ordinance shall be deemed guilty of a misdemeanor and, upon conviction thereof in the
Municipal Court, shall be subject to a fine of not more than $500.00 for each offense, and each
and every day such offense is continued shall constitute a new and separate offense.
SECTION 5. EFFECTIVE DATE. This Ordinance shall take effect and be in full
force and effect from and after the date of its passage and publication as required by law.
SECTION 6. EMERGENCY. It being for the public welfare that this Ordinance be
passed creates an emergency and public necessity and the rule requiring this Ordinance be read
on three separate occasions be, and the same is hereby, waived and this Ordinance shall be in full
force and effect from and after its passage and approval and publication, as the law in such cases
provides.
LEWISVILLE, TEXAS, BY A VOTE OF _____ TO _____, ON THIS THE 17TH DAY OF
MARCH, 2014.
ORDINANCE NO. ______________
Page 3
APPROVED:
____________________________________
Dean Ueckert, MAYOR
ATTEST:
__________________________________________
__________________________________________
Liz Plaster, CITY ATTORNEY
MEMORANDUM
TO:
FROM:
Nika Reinecke, Economic Development Director
DATE:
March 17, 2014
SUBJECT:
Consideration of an Ordinance Approving a Finance Plan for the Tax
Previously Approved Finance Plan.
BACKGROUND AND ANALYSIS
Council adopted Ordinance 3441-05-2007 adopting the Finance Plan for the TIRZ #1 in May of
2007. Staff has discovered some discrepancies which need to be corrected. In our review, we
had noticed a scrivener's error and thus relabeled the heading and renumbered. Changes made
were non-substantive but made the document clearer and easier to read.
The TIRZ #1 Board recommended approval of the changes at their meeting on March 6, 2014.
RECOMMENDATION
It is City staff’s recommendation that the City Council approve the amended ordinance as set
forth in the caption above.
LEWISVILLE TAX INCREMENT REINVESTMENT ZONE, NUMBER ONE
MINUTES
March 6, 2014
1. Call To Order And Announce That A Quorum Present.
The Lewisville Tax Increment Reinvestment Zone, Number One meeting was called to order
by Kellie Stokes at 5:35 PM with the following members present:
Amanda Ferguson
Bill Peck
Steve Kuzmich
Kellie Stokes
Tamela Bowie
Absent: Scott Strange, Donna Kearns
Staff members: Nika Reinecke
1.
Consideration of an Amendment to the Project Plan and Financing Plan for Tax
Increment Reinvestment Zone, Number One.
Staff reviewed the proposed changes to the Project Plan and Finance Plan and answered
questions from the Board. The current and future projects for the Zone that would increase
property value in the Zone were discussed.
Steve Kuzmich moved and Tamela Bowie seconded that the amendments to the Project Plan
and Finance Plan for Tax Increment Reinvestment Zone, Number One be approved. The
motion passed 5-0.
2.
Adjournment.
Approved,
______________________________
Nika Reinecke
Director of Economic Development & Planning
______________________________
Kellie Stokes
Chairperson
Page 1 of 1
Tax Increment Reinvestment Zone Number One
Second Amendment
Finance Plan
As set forth in Section 311.011 in the Tax Increment Financing Act of the Tax Code, the Finance
Plan for the Tax Increment Reinvestment Zone, Number One, City of Lewisville, Texas must
include the following elements:
1.
A detailed list describing the estimated project costs of the zone, including administrative
expenses; and a statement listing the kind, number and location of all proposed public
works or public improvements in the zone.
The City will construct or cause to be constructed the public improvements
necessary to develop the property in the Zone which constitute Project Costs, as
defined in the Act. The City will finance the Project Costs through either the
issuance of bonds secured by the tax increment generated by the City and the
County, each at their respective participation level and/or by utilizing a pay-asyou-go method. Project Costs to be reimbursed consist of costs associated with
the design and construction of the public improvements necessary for the
development of the Project, as described below:
a.
Capital Costs
The proposed public improvements in the zone fall into seven general
categories: streetscaping, sidewalk improvements, signage, parking
facilities and beautification, facilities and administration. However, all
eligible expenditures as allowed in the Act shall be permissible.
Streetscaping
 Landscaping
 Brick paver crosswalks
 Decorative Street Lighting
$3,000,000
Signage
 Implementation
Program
$400,000
of
Wayfinding
Sidewalk Improvements
 Various Locations
$1,000,000
Beautification
$3,000,000
Parking Lots
$2,000,000
2.
Facilities
 Arts Recreation Facility
$8,000,000
Administrative Costs
$2,000,000
TOTAL PUBLIC IMPROVEMENTS
$19,400,000
b.
Design, Architectural, and Engineering Fees
Professional services rendered for design and engineering of public
improvements, including inspecting/testing of soils and construction
materials and overseeing construction operations, architectural services for
public facilities and design services for public art. Additionally, certain
studies, including an economic feasibility study, may be prepared.
c.
Professional Services - Zone Administration
Services such as land planning, accounting, legal, engineering, feasibility
analysis, and other related services associated with the administration of
the Zone.
d.
Zone Administration - Over Life of Zone
Services involved with the ongoing administration of the Zone including,
but not limited to, such services as accountants and bookkeepers,
engineers, legal counsel, planners or other administrative services deemed
necessary by the Board to implement this Plan.
An economic feasibility study and finding.
The current commercial property values in the TIRZ area had seen little positive change
prior to the creation of the Zone in 2001. Many areas within the Zone have seen a
decrease in improvement values and an increase in land values demonstrating a need to
begin revitalization efforts to stabilize the area. With the recent activities taking place
west of IH35E and on the S.H. 121 corridor, it is unlikely that this trend will change
through the efforts of the private sector alone. The proposed infrastructure improvements
will not only enhance the area, both aesthetically and financially, but will also serve as a
catalyst for the private sector to capitalize on these efforts. This is being demonstrated by
the increased development activity around the Medical Center of Lewisville due to the
reconstruction of F.M. 1171 through the heart of the TIRZ. The resultant redevelopment,
mixed with potential new development, will serve to increase the assessed property
values, which, in turn, creates additional revenue for the taxing entities involved. The
spin-off into the adjacent areas of Old Town will also be a benefit to the City and the
taxing entities as well.
3.
The estimated amount of bonded indebtedness to be incurred.
It is expected that Tax Increment Bonds will be sold to finance the public improvements
not initially exceeding ($10,000,000) and will be solely payable from the Tax Increment
Fund in an amount not to exceed the total cost of implementing the project plan for the
reinvestment zone as outlined in Section 311.015 of the Tax Code.
4.
The time when related costs or monetary obligations are to be incurred.
It is anticipated that initial bonds will be sold in 2007. The repayment term on the bonds
to be issued is estimated at twenty (20) years, or until 2027. Debt service and cash flow
projections, will be performed prior to issuance of any bonds which may be sold in
several series.
5.
A description of the methods of financing all estimated project costs and the expected
sources of revenue to finance or pay project costs, including the percentage of tax
increment to be derived from the property taxes of each taxing unit on real property in the
zone.
The Tax Increment Bonds issued by the City will be secured by ad valorem taxes
collected by the City and the County on the incremental increase in the assessed value of
real property located within the Zone.
The City of Lewisville will participate in the Zone at a participation level of one-hundred
percent (100%) of their total increment collection for the life of the Zone and the County
will participate in the Zone at the participation levels shown below:
Years
2002-2005
2006-2010
2011-2015
2016-2020
2021 – expiration of
term
Percentage
100%
90%
85%
80%
75%
The City has established a Tax Increment Fund (the "Fund") for the Zone in the
ordinance designating the Zone. In accordance with Section 311.013 of the Act, each
participating taxing jurisdiction will pay into the Fund the amount of increment generated
by the taxing jurisdiction. The tax increment deposited into the Fund will be used to pay
debt service on the Tax Increment Revenue Bonds which financed the construction of
infrastructure of approved Project Costs along with maintaining, operating and
administering the Zone. Additionally, grants and other forms of external sources (private
and public) will be pursued to offset some of the infrastructure costs.
6.
The current total appraised value of taxable real property in the zone.
The Plan will be implemented in part through the Zone's ability to capture and utilize
incremental ad valorem tax revenue generated from real property in the Zone, known as
the captured appraised value. For the year in which the Zone was created, 2001, the total
appraised ad valorem value of property within the Zone was $69,240,597 according to
the Denton County Appraisal District. These values are referred to as the Base Year
Value for the respective jurisdictions.
As the redevelopment process takes place in phases over many years, the projected
captured appraised value will increase as development continues.
7.
The estimated captured appraised value of the zone during each year of its existence.
The estimated appraised value of the improvements in the zone per year is listed below.
The value of the zone calculates no new projects and a conservative annual growth in the
appraised value of 3%. Tax years 2001 through 2006 are actual numbers, and 2007
through 2028 are estimates.
Year
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
TIRZ Value
$ 69,240,597
$ 74,488,561
$ 100,328,196
$ 104,538,043
$ 108,586,756
$ 134,616,906
$ 137,538,577
$ 140,777,399
$ 143,748,292
$ 147,068,481
$ 151,141,086
$ 171,967,826
$ 177,126,861
$ 182,440,667
$ 187,913,887
$ 193,551,303
$ 199,357,842
$ 205,338,578
$ 211,498,735
$ 217,843,697
$ 224,379,008
$ 231,110,378
$ 238,043,690
$ 245,185,000
$ 252,540,550
$ 260,116,767
$ 267,920,270
$ 275,957,878
TIRZ Captured
Value
$
$
5,247,964
$ 31,087,599
$ 35,297,446
$ 39,346,159
$ 65,376,309
$ 68,297,980
$ 71,536,802
$ 74,507,695
$ 77,827,884
$ 81,900,489
$ 102,727,229
$ 107,886,264
$ 113,200,070
$ 118,673,290
$ 124,310,706
$ 130,117,245
$ 136,097,981
$ 142,258,138
$ 148,603,100
$ 155,138,411
$ 161,869,781
$ 168,803,093
$ 175,944,403
$ 183,299,953
$ 190,876,170
$ 198,679,673
$ 206,717,281
Total Increment
Total
Contribution
$
36,708
$ 217,954
$ 250,075
$ 278,009
$ 436,213
$ 457,502
$ 480,479
$ 502,477
$ 526,323
$ 543,881
$ 671,756
$ 705,492
$ 740,240
$ 776,031
$ 798,480
$ 835,777
$ 874,193
$ 913,761
$ 954,516
$ 978,504
$ 1,020,961
$ 1,064,692
$ 1,109,734
$ 1,156,128
$ 1,203,913
$ 1,253,132
$ 1,303,828
$20,090,757
8. The duration of the zone.
The Zone became effective on December 10, 2001 and shall remain in effect until (i)
December 31, 2028, or (ii) December 31 the year immediately following any outstanding
encumbrances of the Tax Increment Fund have been paid in full, whichever is later. In
no event will Denton County be liable for payment of ad valorem tax collections on the
captured appraised value of real property in the Reinvestment Zone after December 31,
2030.
ORDINANCE NO. ________ __
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
LEWISVILLE, TEXAS APPROVING A FINANCE PLAN OF THE
TAX INCREMENT REINVESTMENT ZONE NUMBER ONE,
LEWISVILLE, TEXAS; REPEALING PREVIOUSLY APPROVED
FINANCE PLAN; PROVIDING A REPEALER; PROVIDING FOR
SEVERABILITY; PROVIDING AN EFFECTIVE DATE; AND
DECLARING AN EMERGENCY
WHEREAS, the City Council of the City of Lewisville, Texas (the “City”), on
December 17, 2001 created the Tax Increment Reinvestment Zone Number One to promote the
development of a certain contiguous geographic area within its jurisdiction, as authorized by the
Tax Increment Financing Act, Chapter 311 of the Texas Tax Code (the “Act”); and
WHEREAS, on May 7, 2007, the City Council adopted the First Amended Reinvestment
Zone Finance Plan in accordance with the Act; and
WHEREAS, on March 6, 2014, the Board of Directors for Tax Increment Reinvestment
Zone, Number One, met in regular session and approved and adopted the Second Amended
Reinvestment Zone Finance Plan in accordance with the Act.
CITY OF LEWISVILLE, TEXAS:
SECTION 1. The facts and recitations contained in the findings of this ordinance are
hereby found and declared to be true and correct and incorporated herein.
SECTION 2. The Finance Plan as shown on Attachment A of this Ordinance shall be
adopted and shall replace any previous Finance Plan adopted by the City.
conflict herewith are here by repealed.
ORDINANCE NO. ______________
Page 2
effect.
provides.
MARCH, 2014.
APPROVED:
___________________________________
Dean Ueckert, MAYOR
ORDINANCE NO. ______________
ATTEST:
____________________________
_____________________________
Page 3
ORDINANCE NO. ______________
Exhibit A
Second Amended Finance Plan
Page 4
Second Amendment
Finance Plan
As set forth in Section 311.011 in the Tax Increment Financing Act of the Tax Code, the Finance
Plan for the Tax Increment Reinvestment Zone, Number One, City of Lewisville, Texas must
include the following elements:
1.
A detailed list describing the estimated project costs of the zone, including administrative
expenses; and a statement listing the kind, number and location of all proposed public
works or public improvements in the zone.
The City will construct or cause to be constructed the public improvements
necessary to develop the property in the Zone which constitute Project Costs, as
defined in the Act. The City will finance the Project Costs through either the
issuance of bonds secured by the tax increment generated by the City and the
County, each at their respective participation level and/or by utilizing a pay-asyou-go method. Project Costs to be reimbursed consist of costs associated with
the design and construction of the public improvements necessary for the
development of the Project, as described below:
a.
Capital Costs
The proposed public improvements in the zone fall into seven general
categories: streetscaping, sidewalk improvements, signage, parking
facilities and beautification, facilities and administration. However, all
eligible expenditures as allowed in the Act shall be permissible.
Streetscaping
 Landscaping
 Brick paver crosswalks
 Decorative Street Lighting
$3,000,000
Signage
 Implementation
Program
$400,000
of
Wayfinding
Sidewalk Improvements
$1,000,000
Beautification
$3,000,000
Parking Lots
$2,000,000
2.
Facilities
 Arts Recreation Facility
$8,000,000
Administrative Costs
$2,000,000
TOTAL PUBLIC IMPROVEMENTS
$19,400,000
b.
Design, Architectural, and Engineering Fees
Professional services rendered for design and engineering of public
improvements, including inspecting/testing of soils and construction
materials and overseeing construction operations, architectural services for
public facilities and design services for public art. Additionally, certain
studies, including an economic feasibility study, may be prepared.
c.
Professional Services - Zone Administration
Services such as land planning, accounting, legal, engineering, feasibility
analysis, and other related services associated with the administration of
the Zone.
d.
Zone Administration - Over Life of Zone
Services involved with the ongoing administration of the Zone including,
but not limited to, such services as accountants and bookkeepers,
engineers, legal counsel, planners or other administrative services deemed
necessary by the Board to implement this Plan.
An economic feasibility study and finding.
The current commercial property values in the TIRZ area had seen little positive change
prior to the creation of the Zone in 2001. Many areas within the Zone have seen a
decrease in improvement values and an increase in land values demonstrating a need to
begin revitalization efforts to stabilize the area. With the recent activities taking place
west of IH35E and on the S.H. 121 corridor, it is unlikely that this trend will change
through the efforts of the private sector alone. The proposed infrastructure improvements
will not only enhance the area, both aesthetically and financially, but will also serve as a
catalyst for the private sector to capitalize on these efforts. This is being demonstrated by
the increased development activity around the Medical Center of Lewisville due to the
reconstruction of F.M. 1171 through the heart of the TIRZ. The resultant redevelopment,
mixed with potential new development, will serve to increase the assessed property
values, which, in turn, creates additional revenue for the taxing entities involved. The
spin-off into the adjacent areas of Old Town will also be a benefit to the City and the
taxing entities as well.
3.
The estimated amount of bonded indebtedness to be incurred.
It is expected that Tax Increment Bonds will be sold to finance the public improvements
not initially exceeding ($10,000,000) and will be solely payable from the Tax Increment
Fund in an amount not to exceed the total cost of implementing the project plan for the
reinvestment zone as outlined in Section 311.015 of the Tax Code.
4.
The time when related costs or monetary obligations are to be incurred.
It is anticipated that initial bonds will be sold in 2007. The repayment term on the bonds
to be issued is estimated at twenty (20) years, or until 2027. Debt service and cash flow
projections, will be performed prior to issuance of any bonds which may be sold in
several series.
5.
A description of the methods of financing all estimated project costs and the expected
sources of revenue to finance or pay project costs, including the percentage of tax
increment to be derived from the property taxes of each taxing unit on real property in the
zone.
The Tax Increment Bonds issued by the City will be secured by ad valorem taxes
collected by the City and the County on the incremental increase in the assessed value of
real property located within the Zone.
The City of Lewisville will participate in the Zone at a participation level of one-hundred
percent (100%) of their total increment collection for the life of the Zone and the County
will participate in the Zone at the participation levels shown below:
Years
2002-2005
2006-2010
2011-2015
2016-2020
2021 – expiration of
term
Percentage
100%
90%
85%
80%
75%
The City has established a Tax Increment Fund (the "Fund") for the Zone in the
ordinance designating the Zone. In accordance with Section 311.013 of the Act, each
participating taxing jurisdiction will pay into the Fund the amount of increment generated
by the taxing jurisdiction. The tax increment deposited into the Fund will be used to pay
debt service on the Tax Increment Revenue Bonds which financed the construction of
infrastructure of approved Project Costs along with maintaining, operating and
administering the Zone. Additionally, grants and other forms of external sources (private
and public) will be pursued to offset some of the infrastructure costs.
6.
The current total appraised value of taxable real property in the zone.
The Plan will be implemented in part through the Zone's ability to capture and utilize
incremental ad valorem tax revenue generated from real property in the Zone, known as
the captured appraised value. For the year in which the Zone was created, 2001, the total
appraised ad valorem value of property within the Zone was $69,240,597 according to
the Denton County Appraisal District. These values are referred to as the Base Year
Value for the respective jurisdictions.
As the redevelopment process takes place in phases over many years, the projected
captured appraised value will increase as development continues.
7.
The estimated captured appraised value of the zone during each year of its existence.
The estimated appraised value of the improvements in the zone per year is listed below.
The value of the zone calculates no new projects and a conservative annual growth in the
appraised value of 3%. Tax years 2001 through 2006 are actual numbers, and 2007
through 2028 are estimates.
Year
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
TIRZ Value
$ 69,240,597
$ 74,488,561
$ 100,328,196
$ 104,538,043
$ 108,586,756
$ 134,616,906
$ 137,538,577
$ 140,777,399
$ 143,748,292
$ 147,068,481
$ 151,141,086
$ 171,967,826
$ 177,126,861
$ 182,440,667
$ 187,913,887
$ 193,551,303
$ 199,357,842
$ 205,338,578
$ 211,498,735
$ 217,843,697
$ 224,379,008
$ 231,110,378
$ 238,043,690
$ 245,185,000
$ 252,540,550
$ 260,116,767
$ 267,920,270
$ 275,957,878
TIRZ Captured
Value
$
$
5,247,964
$ 31,087,599
$ 35,297,446
$ 39,346,159
$ 65,376,309
$ 68,297,980
$ 71,536,802
$ 74,507,695
$ 77,827,884
$ 81,900,489
$ 102,727,229
$ 107,886,264
$ 113,200,070
$ 118,673,290
$ 124,310,706
$ 130,117,245
$ 136,097,981
$ 142,258,138
$ 148,603,100
$ 155,138,411
$ 161,869,781
$ 168,803,093
$ 175,944,403
$ 183,299,953
$ 190,876,170
$ 198,679,673
$ 206,717,281
Total Increment
Total
Contribution
$
36,708
$ 217,954
$ 250,075
$ 278,009
$ 436,213
$ 457,502
$ 480,479
$ 502,477
$ 526,323
$ 543,881
$ 671,756
$ 705,492
$ 740,240
$ 776,031
$ 798,480
$ 835,777
$ 874,193
$ 913,761
$ 954,516
$ 978,504
$ 1,020,961
$ 1,064,692
$ 1,109,734
$ 1,156,128
$ 1,203,913
$ 1,253,132
$ 1,303,828
$20,090,757
8. The duration of the zone.
The Zone became effective on December 10, 2001 and shall remain in effect until (i)
December 31, 2028, or (ii) December 31 the year immediately following any outstanding
encumbrances of the Tax Increment Fund have been paid in full, whichever is later. In
no event will Denton County be liable for payment of ad valorem tax collections on the
captured appraised value of real property in the Reinvestment Zone after December 31,
2030.
MEMORANDUM
TO:
FROM:
Nika Reinecke, Economic Development Director
DATE:
March 17, 2014
SUBJECT:
Consideration of an Ordinance Approving a Project Plan for the Tax
Previously Approved Project Plan.
BACKGROUND AND ANALYSIS
Council adopted Ordinance 3442-05-2007 adopting the Project Plan for the TIRZ #1 in May of
2007. In light of projects proposed in the TIRZ #1 District, Staff has reviewed the Project Plan
and is recommending a few clean up items and to clarify the language for allowable projects in
accordance with the state statute. An example would be adding a goal for sale of a city owned
property for a project in the TIRZ in order to attract new private investment to the district.
The following is a summary of changes proposed:
Project Plan:

Added general goals;

Deleted the current non-project costs because they were listed as project costs in the
Finance Plan. This fixes that conflict;

Added new non-project costs because a list and estimate of the non-project costs is
something that is required by statute;

Added project costs to the project plan (which is required by statute) by listing the project
costs in the Financing Plan. This allows us to amend the finance plan in the future
without having to also amend the project plan, thus streamlining future amendments;

Reorganized the document to improve readability.
The TIRZ #1 Board recommended approval of the changes at their meeting on March 6, 2014.
Denton County will be notified of these changes to the plan.
RECOMMENDATION
It is City staff’s recommendation that the City Council approve the amended ordinance as set
forth in the caption above.
LEWISVILLE TAX INCREMENT REINVESTMENT ZONE, NUMBER ONE
MINUTES
March 6, 2014
1. Call To Order And Announce That A Quorum Present.
The Lewisville Tax Increment Reinvestment Zone, Number One meeting was called to order
by Kellie Stokes at 5:35 PM with the following members present:
Amanda Ferguson
Bill Peck
Steve Kuzmich
Kellie Stokes
Tamela Bowie
Absent: Scott Strange, Donna Kearns
Staff members: Nika Reinecke
1.
Consideration of an Amendment to the Project Plan and Financing Plan for Tax
Increment Reinvestment Zone, Number One.
Staff reviewed the proposed changes to the Project Plan and Finance Plan and answered
questions from the Board. The current and future projects for the Zone that would increase
property value in the Zone were discussed.
Steve Kuzmich moved and Tamela Bowie seconded that the amendments to the Project Plan
and Finance Plan for Tax Increment Reinvestment Zone, Number One be approved. The
motion passed 5-0.
2.
Adjournment.
Approved,
______________________________
Nika Reinecke
Director of Economic Development & Planning
______________________________
Kellie Stokes
Chairperson
Page 1 of 1
ORDINANCE NO. ________ __
OF LEWISVILLE, TEXAS APPROVING A PROJECT
PLAN OF THE TAX INCREMENT REINVESTMENT
ZONE
NUBMER
ONE,
LEWISVILLE,
TEXAS;
REPEALING PREVIOUSLY APPROVED PROJECT PLAN;
PROVIDING
A
REPEALER;
PROVIDING
FOR
SEVERABILTY; PROVIDING AN EFFECTIVE DATE;
AND DECLARING AN EMERGENCY.
WHEREAS, the City Council of the City of Lewisville, Texas (the “City”), on
December 17, 2001, created the Tax Increment Reinvestment Zone Number One to promote the
development of a certain contiguous geographic area within its jurisdiction, as authorized by the
Tax Increment Financing act, Chapter 311 of the Texas Tax Code (the “Act”); and
WHEREAS, on May 7, 2007, the City Council met in regular session and adopted the
First Amended Reinvestment Zone Project Plan in accordance with the Act; and
WHEREAS, on March 6, 2014, the Board of Directors for the Tax Increment
Reinvestment Zone, Number One, met in regular session and approved and adopted a Second
Amendment to the Reinvestment Zone Project Plan in accordance with the Act.
CITY OF LEWISVILLE, TEXAS:
SECTION 1. The facts and recitations contained in the findings of this ordinance are
hereby found and declared to be true and correct and incorporated herein.
SECTION 2. The Project Plan as shown on Attachment A of this Ordinance shall be
adopted and shall replace any previous Project Plan adopted by the City.
conflict herewith are here by repealed.
ORDINANCE NO. ______________
Page 2
effect.
provides.
MARCH, 2014.
APPROVED:
___________________________________
Dean Ueckert, MAYOR
ATTEST:
____________________________
_____________________________
ORDINANCE NO. ______________
Exhibit A
Second Amended Project Plan
Page 3
Second Amendment
Project Plan
Tax Increment Financing provides an opportunity to increase the tax base of a defined area by
generating funding for needed infrastructure and further generating new development. This
Project Plan is adopted and amended pursuant to and in accordance with Section 311.011 of the
Tax Increment Financing Act of the Texas Tax Code.
1. Map and Boundaries. The City has designated approximately 215 acres as Reinvestment
Zone Number One, City of Lewisville, Texas (the “Zone”), which is more specifically
described and depicted in Attachment A.
2. Background and Description of Zone. Prior to the creation of the Zone, a majority of the
land within the area impairs the sound growth of the City in its present condition because of
the presence of a substantial number of deteriorated or deteriorating structures and the
predominance of defective or inadequate sidewalks and street layout. The overall intention of
the Zone is to revitalize the area within the Zone; to make public improvements that will
attract and support the development/redevelopment of new residential and commercial uses,
entertainment venues, and other similarly compatible uses within the Zone; to develop
additional business, commercial, and tourist activity in the Zone, to promote the renovation
of aging structures and the development of undeveloped parcels of land; and to create parks,
open space, and trails to provide accessibility between uses throughout the Zone.
3. Existing Uses. Existing Uses are listed in Attachment B.
4. Project Costs. Project Costs shall be those defined and listed out in the Finance Plan for the
Zone, as amended. Those Project Costs detailed in the Finance Plan for the Zone are hereby
incorporated into this Project Plan as if fully written out verbatim. Project Costs shall also
include any other capital improvements, infrastructure development, and other eligible
project costs as allowed under Section 311.002 of the Texas Tax Code.
5. Non-Project Costs. Non-Project Costs are those not reimbursed or funded by the TIRZ. A
list of the estimated non-project costs are provided below:
Old Town Park Plaza construction and
design funded by City’s general fund
City Funded
$4,000,000
Portions of Main/Mill Streetscape
Improvements funded by City’s general
fund and grant funding
City Funded
$3,750,000
Old Town TOD Plan funded by City’s
general fund
City Funded
$250,000
Portions of Main Street Streetscape
Improvements funded by City’s general
fund
City Funded
$1,200,000
Uptown Village Residential at Kealy
Street
Developer
Funded
$15,698,000
Main Street Village Residential at Main
Street
Developer
Funded
$18,000,000
Restaurant Project at Church Street
Developer
Funded
Developer
Funded
$2,500,000
Mixed Use Project at Mill Street
$30,000,000
6. Development Goals and Objectives. The following development goals meet the specific
needs of the Zone:
○
Create additional taxable value attributed to new private investment in projects in
the Zone.
○
Attract new private development in the Zone including increased retail space,
office space, restaurant space, and new residential units including lofts, condos,
and townhomes.
○
Increase the connectivity and improve access to the DCTA rail system adjacent to
the Zone.
○
Support the conversion of the portions of the Zone to a mixed-use neighborhood
that complements the adjacent Medical Center, the adjacent DCTA rail system,
and still promotes the harmonious adjacency of institutional, residential, and
commercial uses found in the Zone.
○
Increase recreational opportunities and improve pedestrian connections within the
Zone.
○
Diversify the retail and commercial uses in the Zone.
○
Encourage the redevelopment of property, including the possible sale of cityowned property located in the Zone and possible abandonment of right-of-way to
create more developable sites.
○
Improve the pedestrian environment through
landscaping, lighting, and design standards.
sidewalk
improvements,
○
Encourage development of new residential and retail uses to complement the
Zone.
○
Upgrade basic infrastructure including storm drainage, water/wastewater lines,
and burial of overhead utilities to support redevelopment in the Zone.
○
Rehabilitate and mitigate aging and deteriorating structures within the Zone.
7. Zoning Ordinances. There are currently no proposed changes to the zoning ordinances, the
master plan, the building codes, or any other municipal ordinances relating to the zone that
would affect the anticipating implementation of this Project Plan by the Board.
8. Relocation of Persons. There are no relocations anticipated or expected within the proposed
Zone as the result of the projects within the Zone.
Attachment A
Boundaries of the TIRZ
Attachment B
Existing uses
Single-Family Residential
Restaurant
Multi-Family Residential
Retail
Medical
Industrial
Office
Institutional
Automotive
Vacant
Existing Land Use
MEMORANDUM
TO:
FROM:
Nika Reinecke, Director of Economic Development & Planning
DATE:
March 17, 2014
SUBJECT:
Consideration of an Economic Development Agreement by and Between the
City of Lewisville and Old Town Development Lewisville, LLC; Approval of
a Supplemental Appropriation in the Amount of $500,000 From General
Fund Reserves; and Authorization for the City Manager to Execute the
Contract.
BACKGROUND
Old Town Development Lewisville, LLC, has submitted a proposal to develop the 1.76 acre City
owned property at the N.W. corner of Charles and Church Streets. The proposal calls for the
construction of three high quality restaurants and associated improvements that represent the
peak of market demand for destination dining. The development will incorporate local
architectural features to give the development a historic feel that represents the unique aesthetics
of Old Town Lewisville. Old Town Development will invest approximately two-million, five
hundred thousand dollars ($2,500,000) to develop the restaurant sites and will reimburse the City
for the value of land through sales and property tax payments. Cash payments will be required
beginning the 6th year if the value of the land has not been reimbursed. The proposed agreement
is for 15 years and includes a rebate of sales and property tax, as well as reimbursement for
building permit fees.
Also as part of the agreement, the City will provide a start-up grant in an amount not to exceed
$500,000. Therefore, a supplemental appropriation in that amount is now being requested. This
does not include funding for utility relocations. Staff is still working on costs associated with
overhead and underground utility relocations options and will hopefully have the costs available
at the meeting.
Attached is a summary of the economic incentives included in the agreement.
RECOMMENDATION
It is City staff’s recommendation that the City Council consider the agreement and supplemental
appropriation as set forth in the caption above.
Old Town Development Lewisville, LLC
Summary of Economic Incentives
FOUR INCENTIVES:
1. Land Sale
a. Purchase price of $860,000 which will be reduced by offsets (credits) in amounts
equal to 100% of the 1.5% Sales and Use taxes and Property taxes for 5 years
after the issuance of the first certificate of occupancy.
b. Beginning the 6th year after the issuance of the first certificate of occupancy, the
Developer will pay $60,000 per year for 15 years or until the purchase price is
paid.
c. The purchase price is secured by a deed of trust and promissory note in the
amount of $860,000.
d. The use of the property for restaurants only is protected by a deed restriction
which expires 15 years after the issuance of the first certificate of occupancy.
2. Start-Up Grant
a. Not to exceed $500,000
b. Used for permit fees, parking lot construction and other public infrastructure
3. Tax Revenue Grant
a. Beginning the 6th year after the issuance of the first certificate of occupancy, the
Developer will receive an amount equal to 40% of the 1% Sales and Use tax and
Property tax. The City will keep the other 60%.
b. Once the City has recouped $500,000 (the amount of the Start-Up Grant) from its
60% split AND the purchase price of the property has been paid, the Developer
will receive an amount equal to 60% of the 1% of the Sales and Use tax and
Property tax. The City will keep the other 40%. This split will continue until the
remainder of the term of the agreement or December 31, 2030, whichever occurs
first.
4. Relocation of Utility Lines
a. The City will use “every effort” to relocate the utilities underground.
b. If the utilities are not relocated underground, the City, at our cost, shall relocate
the utilities, overhead, to the rear of the property.
c. The Developer will provide all necessary easements for either relocation.
ECONOMIC DEVELOPMENT AGREEMENT
THIS ECONOMIC DEVELOPMENT AGREEMENT (“Agreement”) is entered into by
and between the City of Lewisville, Texas, a home rule municipality duly acting by and through
its City Manager, (hereinafter called “City”), and Old Town Development Lewisville, LLC, a
Texas limited liability company (hereinafter called “the Developer”), and both entities
collectively referred to as Parties in this Agreement (“Parties”).
W I T N E S S E T H:
WHEREAS, pursuant to Chapter 380 of the Texas Local Government Code (hereinafter
referred to as "Statute"), the City adopted an Economic Incentive Policy for making economic
development incentives and grants on August 16, 2010 (hereinafter referred to as "the Policy
Statement"); and
WHEREAS, the Policy Statement constitutes appropriate guidelines and criteria
governing economic development agreements to be entered into by the City as contemplated by
the Statute; and
WHEREAS, in order to maintain and/or enhance the commercial economic and
employment base of the Lewisville area to the long-term interest and benefit of the City, in
accordance with said Statute, the City desires to enter into this Agreement; and
WHEREAS, on the ------ day of --------- 2014, the City Council of the City of
Lewisville, Texas, authorized this Agreement pursuant to Chapter 380 of the Texas Local
Government Code (“CHAPTER 380”);
WHEREAS, the City currently owns property at ---------------------------- Street
(“Property” or “Premises”) (more fully described in Attachment “A”, attached hereto and made a
part hereof) that is the subject of this Agreement;
WHEREAS, the Property is located within Tax Increment Reinvestment Zone Number
One;
WHEREAS, the Developer intends to purchase and develop the Property that is the
subject of this Agreement;
WHEREAS, the Parties desire to enter into this Agreement pursuant to Chapter 380;
WHEREAS, the City desires to provide, pursuant to Chapter 380, an incentive to the
Developer to develop the Property;
WHEREAS, the Developer agrees to develop the Property in a manner consistent with
an approved development plan as described in Attachment “B”, attached hereto and made a part
hereof, or as amended in accordance with all provisions of the City;
WHEREAS, the City finds that the administration of an economic development
agreement to provide incentives to the Developer, in return for developing the Property would
promote local economic development and stimulate business and commercial activity within the
municipality and would directly establish a public purpose, and;
WHEREAS, the City has determined that the this Agreement contains sufficient controls
to ensure that the above-mentioned public purposes are carried out in all transactions involving
the use of public funds and resources in the establishment and administration of the Agreement;
NOW, THEREFORE, in consideration of the foregoing, and on the terms and
conditions hereinafter set forth, the Parties do mutually agree as follows:
ARTICLE I
TERM
1.1
This Agreement shall be effective on the date that this Agreement is executed by
the Parties (“Effective Date”) and shall continue for 15 years from the date of the issuance of
certificate of occupancy for the first building on the Property, unless sooner terminated as
provided herein.
ARTICLE II
DEFINITIONS
2.1
Wherever used in this Agreement, the following terms shall have the meanings
ascribed to them:
“Agreement” has the meaning set forth in the introductory paragraph of this Agreement.
“City” has the meaning set forth in the introductory paragraph of this Agreement.
“Construction Costs” means the costs of all construction, including but not limited to,
hard construction, construction equipment charges, the costs of construction materials and the
delivery thereof, contractor fees, surveying and engineering costs and fees, insurance, bonding,
marketing, fees for required bonds, or City fees, including but not limited to inspection fees,
impact fees and park development fees, related to the development of the Improvements and any
parking, landscaping and lighting related to same.
“Developer” has the meaning set forth in the introductory paragraph of this Agreement.
“Effective Date” means the date established in Article I of this Agreement.
Page 2
“Force Majeure” shall mean any contingency or cause beyond the reasonable control of
Developer, including without limitation, acts of God or the public enemy, war, riot, terrorism,
civil commotion, insurrection, governmental or de facto governmental action including, but not
limited to, government actions pertaining to the determination of flood zones or FEMA actions
(unless caused by acts or omissions of Developer), fire, explosion or flood, and strikes.
“Start-Up Grant” shall mean an economic development grant as defined in Article IV.
“Offset” means an amount of money equal to the amount of annual Property Tax and
Sales and Use Tax generated from the Property and paid to the City which is used to reduce the
balance of the Purchase Price of the Property, as more fully set forth in Article IV.
“Payments” means monetary payments made to the City by the Developer for the
Purchase Price of the Property.
“Promissory Note” means that certain Promissory Note from the Developer to the City
in the amount of Eight Hundred Sixty Thousand and 00/100 Dollars ($860,000.00) for the
purchase of the Property, due and payable in accordance with the terms and conditions set forth
therein, and attached hereto as Attachment “C” and made a part hereof.
“Property Taxes” means all real property ad valorem taxes payable to the City from the
Property. For purposes of calculating the annual Offset or annual Grant amount as provided for
herein, the applicable year’s taxes shall be used.
“Property Improvement(s)” shall mean three (3) high quality restaurants which are
acceptable to the City (such approval not to be unreasonably withheld) including all ancillary
improvements such as required parking and landscaping, more fully described in Attachment
“B”.
“Property” or “Premises” shall mean that property as described in Attachment “A” and
described by metes and bounds, lot and block or abstract and survey attached hereto, and made a
part hereof, and the improvements located or to be located thereon.
“Public Improvements” means the public streets, public infrastructure (including, but
not limited to, all lighting and parking infrastructure) and related public facilities to be
constructed on or benefiting the Property.
“Purchase Price” has the meaning set forth in Article IV of this Agreement.
“Sales And Use Tax” means all of the sales and use tax imposed by the City pursuant to
Chapter 321 of the Texas Tax Code, as amended on the sale of Taxable Items consummated on
the Property.
Page 3
“1% Sales Tax Receipts” means the 1% Sales and Use Tax annually received from the
State of Texas and designated to the City’s general fund from the collection of Sales and Use
Tax from the Property as a result of the sale of Taxable Items on the Property.
“1.5% Sales Tax Receipts” means the 1.5% Sales and Use Tax annually received from
the State of Texas from the collection of Sales and Use Tax from the Property as a result of the
sale of Taxable Items on the Property.
“Substantial Completion” means with regard to the Public Improvements, the date the
City issues a Letter of Acceptance for the Public Improvements.
“Tax Certificate” (“Certificate”) means a certificate or other statement in a form
reasonably acceptable to the City setting forth the collection of Sales and Use Tax and Property
Tax received by the City, for Property Tax and the sale of Taxable Items on the Property
consummated on the Property for the applicable period which are to be used to determine the 1%
Sales Tax Receipts and 1.5% Sales Tax Receipts, respectively, together with such supporting
documentation as the City may reasonably request.
“Taxable Items” shall have the same meaning assigned by Chapter 151, TEX. TAX
CODE ANN., as amended.
ARTICLE III
GENERAL PROVISIONS
3.1
As soon as practical after the Effective Date of this Agreement, the Developer
shall commence construction of the Property Improvements on the Premises in accordance with
the City approved plans and in substantial conformance with Attachment “B”.
3.1.1 The Developer shall submit or cause to be submitted to the City for its
review and approval final plans for the design of the Property Improvements in
accordance with all City ordinances and regulations. Property Improvements shall
include the construction of three (3) high quality restaurants which are acceptable to the
City (such approval not be unreasonably withheld) and associated improvements as
shown on Attachment “B” and further approved final site plan and construction plans on
the Premises.
3.1.2 The total investment on the Property, including any of Developer’s loans
on the Property, construction of improvements and public infrastructure, and tenant
improvements, or, alternatively, the appraised value of the Property following the
improvements described herein, shall be approximately Two Million Five Hundred
Thousand and 00/100 Dollars ($2,500,000).
3.2
Within twenty-four (24) months after the Effective Date of this Agreement,
Developer shall have obtained a certificate of occupancy for two (2) restaurants and, within
thirty (30) months after the Effective Date of this Agreement, shall have obtained a certificate of
Page 4
occupancy for the third restaurant on the Premises.
3.2.1 In the event of Force Majeure or, if in the reasonable opinion of the City,
the Developer has made substantial progress toward completion of construction,
renovation and installation of the Property Improvements additional time may be granted
by the City as may be required.
3.2.2 The date of substantial completion of construction, renovation and
installation of the Property Improvements shall be defined as the date that Developer
receives a certificate of occupancy for the Property Improvements.
ARTICLE IV
ECONOMIC DEVELOPMENT INCENTIVES
4.1. Sale of Property. Subject to the terms and conditions of this Agreement, the
Developer agrees to purchase the Property from the City at an agreed price of Eight Hundred
Sixty Thousand and 00/100 Dollars ($860,000) (the “Purchase Price”).
4.1.1 Annual Offset Amount. The City shall apply an annual offset to the
Purchase Price of the Property by crediting an amount equal to the annual collection of
100% of the 1.5% Sales Tax Receipts and Property Tax revenues received by the City
from the Premises until the full amount of the Purchase Price is paid or the end of five (5)
years from the date of issuance of the first certificate of occupancy for a building on the
Premises, whichever is sooner. The Developer shall, within thirty (30) days following the
anniversary of the date of the receipt of the first certificate of occupancy for a building on
the Premises, submit a Tax Certificate with all supporting documents needed to verify the
amount of Sales and Use Taxes and Property Taxes that were paid to the City.
4.1.2 Annual Payment Amount. If after five (5) years from the date of issuance
of the first certificate of occupancy for a building on the Premises, the City has not been
paid in full for the Purchase Price of the Property, the Developer shall pay the City an
annual payment of Sixty Thousand and 00/100 Dollars ($60,000.00) for fifteen (15) years
or until the full Purchase Price is paid, whichever is sooner. This payment shall be made
annually within thirty (30) days following the anniversary of the date of the receipt of the
first certificate of occupancy for a building on the Premises in the year following each
applicable year. By way of example only, if the first certificate of occupancy is obtained
on July 15, 2015, the first Annual Payment would be due on August 15, 2021.
4.2.
Start-Up Grant. Subject to the Parties’ continued satisfaction of the terms and
conditions of this Agreement, the City shall offset or reimburse the Developer for certain
expenses, as set forth below, up to Five Hundred Thousand and 00/100 Dollars ($500,000) (the
“Start-Up Grant”).
Page 5
4.2.1 The Start-Up Grant is for the purpose of (1) offsetting all building permitrelated costs associated with the Property Improvements including, but not limited to,
impact fees, inspection fees, plan review fees and any other fee normally charged by the
City for development projects; (2) reimbursing costs for the construction of a public
parking lot on the Premises; and (3) reimbursing costs for the construction of any other
Public Improvements needed to facilitate the Property Improvements on the Premises.
4.2.2 City shall consolidate all permit-related fees prior to issuance of the first
building permit on the Premises and deduct said fees from the Start-Up Grant. Any
remaining balance from the Start-Up Grant may be applied to invoices received from
Developer on the above-stated construction-related items. Invoices received from the
Developer will be reimbursed by the City within 30 days after verification of completed
work to the full satisfaction of the City.
4.3
Annual Grant Equal to the Amount of Tax Revenue.
4.3.1 Starting from the 6th year after the date of the first certificate of occupancy
of a building on the Premises, the City shall pay Developer an amount equal to forty
percent (40%) of the 1% Sales Tax Receipts and the Property Tax revenues received by
the City from the Premises.
4.3.2 After the Purchase Price is paid in full and the amount of the Start-Up
Grant has been recouped by the City through an amount equal to the City’s share of
Property Tax and the 1% Sales Tax Receipts, the City shall pay Developer an amount
equal to sixty percent (60%) of the 1% Sales Tax Receipts and the Property Tax revenues
received by the City from the Premises for the remainder of the term of this Agreement or
December 31, 2030, whichever occurs first.
4.3.3 Developer will be paid the above amounts on an annual basis on or before
thirty (30) days following the anniversary of the date of the receipt of the first certificate
of occupancy for a building on the Premises, provided that by the anniversary of the date
of the receipt of the first certificate of occupancy for a building on the Premises of each
year, the Developer submits a Tax Certificate with all supporting documents needed to
verify the amount of Sales and Use Taxes and Property Taxes that were paid to the City.
4.4
Relocation of Existing Overhead Franchise Utilities. The City agrees to make
every effort to remove the existing overhead utilities located in front of the Property on Church
Street and relocate the utilities underground. This will be in conjunction with another public
improvement project in the area and is subject to the availability of funds. If the utilities are
relocated underground, the City shall be directly responsible for the costs and construction
required to bury these utilities in front of the Property. The City agrees to coordinate the burial
of such utilities with Developer so that the location of same shall be in accordance with
Developer’s approved plans and specifications.
4.4.1
Should the relocation of utilities underground cause any undue delay to
Page 6
Developer in constructing the Improvements on the Property, the timeframes set forth in
this Agreement for the construction of Property Improvements, shall be extended
accordingly.
4.4.2 The Developer shall give the City all necessary easements and rights to
access to relocate the utilities underground or to the rear of the Premises under 4.4.3
below.
4.4.3 If the City is unable to bury the existing utilities due to funding shortages,
the City agrees to, alternatively, coordinate and move the overhead utilities to the rear of
the Premises to a specific location agreed to between the City and Developer.
ARTICLE V
REFUNDS AND ADJUSTMENTS
5.1
In the event the State of Texas determines that the City erroneously received
either the 1% Sales Tax Receipts or 1.5% Sales Tax Receipts, or that the amount of Sales and
Use Tax paid by the State of Texas to the City exceeds the correct amount of Sales and Use Tax
applicable to this Agreement, the Developer shall, within thirty (30) days after receipt of
notification thereof from the City specifying the amount by which such amount exceeded the
amount to which the Developer was entitled pursuant to such State of Texas determination, pay
such amount to the City. As a condition precedent to payment of such refund, the City shall
provide Developer with a copy of such determination by the State of Texas.
5.2
In the event the Developer’s vendor files an amended Sales and Use Tax return,
or report with the State of Texas, or if additional Sales and Use Tax is due and owing, as
determined or approved by the State of Texas, affecting either the 1% Sales Tax Receipts or
1.5% Sales Tax Receipts, the City shall pay to the Developer any underpayment, provided the
City has received the respective Sales Tax Receipts attributed to such adjustment. As a condition
precedent to payment of such adjustment, the Developer shall provide the City with a copy of
any Developer’s vendor amended Sales and Use Tax report or return made available to the
Developer, any relevant receipts, or any relevant direct payment and self-assessment returns.
5.3
The provisions of this Section 5.1 shall survive termination of this Agreement.
ARTICLE VI
AGREEMENT CONDITIONS
6.1
Security. To insure Developer’s obligation for payment pursuant to Article IV,
the Developer shall provide to the City a Promissory Note in the amount of Eight Hundred Sixty
Thousand and 00/100 Dollars ($860,000). The Promissory Note shall be initially secured by
Developer’s grant to the City, at the time of closing of the acquisition of the Premises, of a deed
of trust secured by a lien on the Premises. The Promissory Note and deed of trust shall be
attached hereto as Attachment “C”.
Page 7
6.1.1 The City shall be secured by the deed of trust until such a time as the
Developer closes on a construction loan to develop the Property. Upon closing of the
construction loan, the City will release the lien of the deed of trust but not the Promissory
Note. The Developer shall remain liable on the Promissory Note until full payment of
$860,000 for purchase of the Property is met by the Developer in accordance with this
Agreement. Offsets and payments made in accordance with this Agreement shall be
credited against the indebtedness described in said Promissory Note.
6.1.2 Following the closing of a construction loan, if any, the Developer shall
secure its obligation for payment on the Promissory Note by providing the City a lien
position subordinate only to the construction loan.
6.1.3
Agreement.
The provisions of this Section 6.1 shall survive termination of this
6.1.4 Upon full payment (or offset) of the Promissory Note amount, any lien
held by the City shall be immediately released in full.
6.2
Minimum Use Condition. During the term of this Agreement following the
issuance of a certificate of occupancy for Developer’s occupancy of the Property Improvements
on the Premises and continuing thereafter until expiration of this Agreement or earlier
termination of same, the Developer agrees to occupy a minimum of 15,000 square feet of
indoor/outdoor restaurant space and ancillary facilities.
6.2.1 To insure Developer’s obligation to develop and use the Property as
provided in Article III, the deed to the Property shall include a deed restriction, attached
hereto as Attachment “D” and made a part hereof.
6.3
Compliance with the Agreement. The Developer must certify annually to the
governing body of the City as to its attainment of the stated performance measures described
herein by submitting an annual compliance report and appropriate support documentation, no
later than January 15th of each year after the issuance of the certificate of occupancy and
continuing until the expiration of the Agreement to the City’s Director of Economic
Development.
ARTICLE VII
TERMINATION
This Agreement may be terminated upon any one of the following:
1. By written agreement of the parties;
2. Expiration of the Term;
3. By either party in the event the other party breaches any of the terms or conditions
of this Agreement and such breach is not cured within sixty (60) days after written
notice thereof;
Page 8
4. By City, if Developer suffers an Event of Bankruptcy; and
5. By City, if any taxes, assessments or payments owed to the City or the State of
Texas by Developer shall become delinquent and not cured within sixty (60) days
after written notice thereof (provided, however the Developer retains the right to
timely and properly protest and contest any such taxes or assessments).
In the event the Agreement is terminated by the City pursuant to this Article (3), (4), or (5), the
Developer shall be ineligible for further grants pursuant to this Agreement and shall be liable to
pay any remaining amounts left on the Purchase Price ($860,000) for the Property within 60 days
of notice from the City.
ARTICLE VIII
MISCELLANEOUS
8.1
The terms and conditions of this Agreement are binding upon the successors and
assigns of all parties hereto. This Agreement cannot be assigned by the Developer unless written
permission is first granted by the City, which consent shall not be unreasonably withheld, so long
as the Developer’s assignee agrees to be bound by all terms and conditions of this Agreement It
is understood and agreed between the parties that the Developer, in performing its obligations
thereunder, is acting independently, and the City assumes no responsibility or liabilities in
connection therewith to third parties; it is further understood and agreed between the parties that
the City, in performing its obligations hereunder, is acting independently, and the Developer
assumes no responsibilities in connection therewith to third parties.
8.2
The Developer further agrees that the City, its agents and employees, shall have
reasonable rights of access to the Premises to inspect the Premises in order to ensure that the
construction of the improvements to the Premises is in accordance with all applicable agreements
with the City, including this Agreement, and all applicable state and local laws and regulations,
as well as the continuing right, subject to Developer’s reasonable security requirements, to
inspect the Premises to ensure that the Premises are thereafter maintained, operated, and
occupied in accordance with all applicable agreements with the City, provided that with respect
to matters concerning this Agreement (i) the City must give the Developer reasonable prior
telephone or written notice of any such inspection, and (ii) a representative of the Developer
shall have the right to accompany the agent or employee of the City who is conducting such
inspection. The City represents and warrants that the Premises does not include any property
that is owned by a member of the City Council having responsibility for the approval of this
Agreement.
8.3
Notices required to be given to any party to this Agreement shall be given
personally or by certified mail, return receipt requested, postage prepaid, addressed to the party
at its address as set forth below, and, if given by mail, shall be deemed delivered three (3) days
after the date deposited in the United States’ mail:
Page 9
For City by notice to:
City of Lewisville
Attn: Economic Development Director
151 W. Church Street
P.O. Box 299002
Lewisville, Texas 75057
For Developer by notice to:
Attn: Chris Gordon
2241 Veranda Avenue
Trophy Club, Texas 76262
With a copy to:
Murphy, Mahon Keffler & Farrier, L.L.P.
Attn: Chris Baker
Tindall Square Building No. 2
505 Pecan Street, Suite 101
Fort Worth, Texas 76102
Any party may change the address to which notices are to be sent by giving the other parties
written notice in the manner provided in this paragraph.
8.4
No claim or right arising out of a breach of this Agreement can be discharged in
whole or in part by a waiver or renunciation of the claim or right unless the waiver or
renunciation is supported by consideration and is in writing signed by the aggrieved.
8.5
This Agreement may be modified or rescinded only by a writing signed by both of
the parties or their duly authorized agents.
8.6
Venue for any litigation arising from this Agreement shall lie in Denton County,
Texas.
8.7
Developer agrees to defend, indemnify and hold City, its officers, agents and
employees, harmless against any and all claims, lawsuits, judgments, costs and expenses for
personal injury (including death), property damage or other harm for which recovery of
damages is sought, suffered by any person or persons, that may arise out of or be
occasioned by Company's breach of this Agreement or by any negligent or strictly liable
act or omission of Company, its officers, agents, employees or subcontractors, in the
performance of this Agreement. The provisions of this paragraph are solely for the benefit
of the parties hereto and not intended to create or grant any rights, contractual or
Page 10
otherwise, to any other person or entity. This paragraph shall survive the termination of
this Agreement.
8.8
This Agreement may be executed in multiple counterparts, each of which shall
constitute an original, but all of which in the aggregate shall constitute one agreement.
8.9
If any provision contained in this Agreement is held to be invalid, illegal, or
unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any
other provision hereof. In lieu of each invalid, illegal or unenforceable provision, there shall be
added a new provision by agreement of the parties as similar in terms to such invalid, illegal or
unenforceable provision as may be possible and yet be valid, legal and enforceable.
8.10 Whenever the context requires, all words herein shall be deemed to include the
male, female, and neuter gender, singular words shall include the plural, and vice versa.
8.11 This Agreement was authorized by action of the City Council, authorizing the
City Manager to execute the Agreement on behalf of the City.
ATTEST:
Julie Heinze, City Secretary
APPROVED TO FORM:
Lizbeth Plaster, City Attorney
OLD TOWN DEVELOPMENT LEWISVILLE, LLC
a Texas limited liability company
By:
Name:
Title:
Page 11
Attachment “A”
LEGAL DESCRIPTION
Being a tract of land out of J. W. King Survey, Abstract No. 696 and situated in the City of Lewisville, Denton
County, Texas, and surveyed by Miller Surveying, Inc. of Hurst, Texas in January 2014, said tract being the same
tract of land described as “Tract 2” in the deed to City of Lewisville recorded in Volume 4845, Page 26 in the Deed
Records of Denton County, Texas and being more particularly described by metes and bounds as follows:
Beginning at a TxDOT monument found for the most westerly southwest corner of said Tract 2, said monument
being in the easterly right-of-way line of Herod Street;
Thence North 00 degrees 04 minutes 16 seconds East with the westerly boundary line of said Tract 2 and with said
easterly right-of-way line a distance of 116.96 feet to a 1/2 inch steel rod found for the northwest corner of said
Tract 2;
Thence North 89 degrees 31 minutes 37 seconds East with the northerly boundary line of said Tract 2 a distance of
347.97 feet to a nail found;
Thence South 00 degrees 00 minutes 47 seconds West continuing with said northerly boundary line a distance of
11.95 feet to a 1/2 inch steel rod found;
Thence North 89 degrees 31 minutes 37 seconds East continuing with said northerly boundary line a distance of
103.99 feet to a 1/2 inch capped steel rod found;
Thence North 00 degrees 13 minutes 44 seconds West continuing with said northerly boundary line a distance of
Thence South 89 degrees 30 minutes 38 seconds East continuing with said northerly boundary line a distance of
107.24 feet to a PK nail found for the northeast corner of said Tract 2, said nail being in the westerly right-of-way
line of N Charles Street;
Thence South 00 degrees 18 minutes 25 seconds East with the easterly boundary line of said Tract 2 and with said
westerly right-of-way line a distance of 163.45 feet to a 1/2 inch "MILLER 5665" capped steel rod set for the most
easterly southeast corner of said Tract 2;
Thence South 44 degrees 46 minutes 12 seconds West continuing with said easterly boundary line and said westerly
right-of-way line a distance of 14.20 feet to a 1/2 inch "MILLER 5665" capped steel rod set for the most southerly
southeast corner of said Tract 2, said rod being in the northerly right-of-way line of W Church Street;
Thence South 89 degrees 31 minutes 37 seconds West with the southerly boundary line of said Tract 2 and with said
northerly right-of-way line a distance of 535.00 feet to a TxDOT monument found for the most southerly southwest
corner of said Tract 2;
Thence North 45 degrees 13 minutes 48 seconds West continuing with said southerly boundary line and said
northerly right-of-way line a distance of 21.12 feet to the point of beginning and containing 1.7673 acres of land,
more or less.
Page 12
Attachment “B”
CONCEPT PLAN
Page 13
Attachment “C”
PROMISSORY NOTE and DEED OF TRUST
(attached)
Page 14
Promissory Note
Date:
____________, 2014
Borrower:
Borrower’s Mailing Address:
2241 Veranda Avenue
Lender:
City of Lewisville
Place for Payment:
__________________
__________________
Principal Amount:
$860,000.00
Annual Interest Rate:
NONE (0%)
Maturity Date:
Fifteen (15) years following the Construction Period, as described below
Annual Interest Rate on Matured, Unpaid Amounts:
8%
Terms of Payment (principal and interest):
Beginning five (5) years after the conclusion of the Construction Period, as that term is defined
herein, the Principal Amount and any accrued interest will be due and payable in fourteen (14)
successive annual installments of $60,000.00 and the fifteenth (15th) and final installment being in
an amount equal to the entire unpaid balance of the Principal Amount plus any accrued interest.
Annual installments will be due within thirty (30) days following anniversary of the Construction
Period in the year following the applicable year, after any and all Offsets, as that term is defined
herein, from Lender have been applied. By way of example only, if the Construction Period
expires on July 15, 2015, the July 15, 2020 year payment shall be made by August 15, 2021.
“Construction Period” means the time period commencing on the effective date of this note and
ending on the first (1st) day of the month following the issuance of the first Certificate of
Occupancy for a restaurant building to be constructed by Borrower on the real property
described on Exhibit A.
“Offset” means amounts due and owing by Lender to Borrower in accordance with that certain
Economic Development Agreement, executed ____________, 2014.
Security for Payment:
This note is secured by a deed of trust of even date herewith from Old Town Development
Lewisville, LLC, to Kellie Fister Stokes, Trustee, which covers the real property described on
Exhibit A.
Other Security for Payment/Promise to Pay:
Borrower promises to pay to the order of Lender the Principal Amount plus interest at the
Annual Interest Rate. This note is payable at the Place for Payment and according to the Terms of
Payment. All unpaid amounts are due by the Maturity Date. After maturity, Borrower promises
to pay any unpaid principal balance plus interest at the Annual Interest Rate on Matured, Unpaid
Amounts.
Defaults & Remedies:
If Borrower defaults in the payment of this note, and the continuance of any such non-payment (in
whole or in part) for a period of thirty (30) calendar days from and after notice is received by Borrower
from Lender describing such default, or in the performance of any obligation in any instrument
securing the collateral to this note, and which, given the opportunity, has not cured such default
as provided under any such instrument, Lender may declare the unpaid principal balance,
earned interest, and any other amounts owed on the note immediately due. Borrower waives all
demand for payment, presentation for payment, notice of intention to accelerate maturity, notice
of acceleration of maturity, protest, and notice of protest, to the extent permitted by law.
A default exists under this note if (1) Borrower or any other person liable on any part of this note
or who grants a lien or security interest on the property as security for any part of this note (an
“Other Obligated Party”) fails to timely pay or perform any obligation or covenant in any written
agreement between Lender and Borrower or any Other Obligated Party; (2) any warranty,
covenant, or representation in this note or in any other written agreement between Lender and
Borrower or any Other Obligated Party is materially false when made; (3) a receiver is appointed
for Borrower, any Other Obligated Party, or any property on which a lien or security interest is
created as security (the “Collateral Security”) for any part of this note; (4) any Collateral Security
is assigned for the benefit of creditors; (5) a bankruptcy or insolvency proceeding is commenced
by Borrower, a partnership of which Borrower is a general partner, or an Other Obligated Party;
(6) a bankruptcy or insolvency proceeding is commenced against Borrower, a partnership of
which Borrower is a general partner, or an Other Obligated Party and the proceeding continues
without dismissal for sixty days, the party against whom the proceeding is commenced admits
the material allegations of the petition against it, or an order for relief is entered; (7) any of the
following parties is dissolved, begins to wind up its affairs, is authorized to dissolve or wind up
its affairs by its governing body or persons, or any event occurs or condition exists that permits
the dissolution or winding up of the affairs of any of the following parties: Borrower, a
partnership of which Borrower is a general partner, or an Other Obligated Party; or (8) any
Collateral Security is impaired by loss, theft, damage, levy and execution, issuance of an official
writ or order of seizure, or destruction, unless it is promptly replaced with collateral security of
like kind and quality or restored to its former condition.
Attorney’s Fees:
Borrower also promises to pay reasonable attorney’s fees and court and other costs if this note is
placed in the hands of an attorney to collect or enforce the note. These expenses will bear interest
from the date of advance at the Annual Interest Rate on Matured, Unpaid Amounts. Borrower
will pay Lender these expenses and interest on demand at the Place for Payment. These expenses
and interest will become part of the debt evidenced by the note and will be secured by any
security for payment.
Prepayment:
Borrower may prepay this note in any amount at any time before the Maturity Date without
penalty or premium.
Usury Savings:
Interest on the debt evidenced by this note will not exceed the maximum rate or amount of
nonusurious interest that may be contracted for, taken, reserved, charged, or received under law.
Any interest in excess of that maximum amount will be credited on the Principal Amount or, if
the Principal Amount has been paid, refunded. On any acceleration or required or permitted
prepayment, any excess interest will be canceled automatically as of the acceleration or
prepayment or, if the excess interest has already been paid, credited on the Principal Amount or,
if the Principal Amount has been paid, refunded. This provision overrides any conflicting
provisions in this note and all other instruments concerning the debt.
Other Clauses:
This note will be construed under the laws of the state of Texas, without regard to choice-of-law
rules of any jurisdiction.
When the context requires, singular nouns and pronouns include the plural.
The provisions of this Note shall be binding upon and for the benefit of the successors, assigns,
heirs, executors and administrators for Lender and Borrower.
If any installment becomes overdue for more than ten days, at Lender’s option a late payment
charge of 5% of the amount of the payment may be charged in order to defray the expense of
handling the delinquent payment.
If any provision of this note conflicts with any provision of a loan agreement, deed of trust, or
security agreement of the same transaction between Lender and Borrower, the provisions of the
deed of trust will govern to the extent of the conflict.
This note represents the final agreement between the parties and may not be contradicted by
evidence of prior, contemporaneous or subsequent oral agreements of the parties. There are no
unwritten oral agreements between the parties.
By:
_______________, _________
Exhibit A
Legal Description
Tract 2;
more or less.
Deed of Trust
Notice of confidentiality rights: If you are a natural person, you may remove or strike any or all of the
following information from any instrument that transfers an interest in real property before it is filed
for record in the public records: your Social Security number or your driver’s license number.
Terms
Date:
____________, 2014
Grantor:
Grantor’s Mailing Address:
2241 Veranda Avenue
Trustee:
________________
Trustee’s Mailing Address:
________________
________________
Lender:
City of Lewisville
Lender’s Mailing Address:
________________
________________
Obligation:
Note:
Date:
_______________, 2014
Original principal amount:
$860,000.00
Borrower:
Lender:
City of Lewisville
Maturity date:
As further set out therein
Property (including any improvements):
Described on Exhibit A.
Other Exceptions to Conveyance and Warranty:
For value received and to secure payment of the Obligation, Grantor conveys the Property to
Trustee in trust. Grantor warrants and agrees to defend the title to the Property, subject to the
Other Exceptions to Conveyance and Warranty. On payment of the Obligation and all other
amounts secured by this deed of trust, this deed of trust will have no further effect, and Lender
will release it at Grantor’s expense.
Clauses and Covenants
Grantor, in consideration of the debt and trust herein mentioned, does hereby GRANT, BARGAIN,
SELL, TRANSFER, ASSIGN and CONVEY unto Kellie Fister Stokes, as Trustee, the Property in
TRUST to secure payment of the Obligation evidenced by that certain Note of even date herewith,
incorporated herein by reference, executed by Grantor and payable to the order of Lender, TO HAVE
AND TO HOLD the Property, together with the rights, privileges, and appurtenances thereto, unto the
said Trustee, and to his substitutes or successors forever. And Grantor does hereby bind itself, and
Grantor's successors and assigns to warrant and forever defend the Property unto the said Trustee, his
substitutes or successors and assigns forever, against the claim or claims of all persons claiming or to
claim the Property or any part thereof, by, through or under Grantor, but not otherwise. The Grantor
hereby agrees as follows:
A.
Grantor’s Obligations
Grantor agrees to—
1.
keep the Property in good repair and condition;
2.
pay all taxes and assessments on the Property before delinquency;
3.
defend title to the Property subject to the Other Exceptions to Conveyance and Warranty
and preserve the lien’s priority as it is established in this deed of trust;
4.
if the lien of this deed of trust is not a first lien, pay or cause to be paid all prior lien notes
and abide by or cause to be abided by all prior lien instruments; and
5.
notify Lender of any change of address.
B.
Lender’s Rights and Duties
1.
Lender or Lender’s mortgage servicer may appoint in writing one or more substitute
trustees, succeeding to all rights and responsibilities of Trustee.
2.
If the proceeds of the Obligation are used to pay any debt secured by prior liens, Lender
is subrogated to all the rights and liens of the holders of any debt so paid.
3.
Notwithstanding the terms of the Note to the contrary, and unless applicable law
prohibits, all payments received by Lender from Grantor with respect to the Obligation
or this deed of trust may, at Lender’s discretion, be applied first to amounts payable
under this deed of trust and then to amounts due and payable to Lender with respect to
the Obligation, to be applied to late charges, principal, or interest in the order Lender in
its discretion determines.
5.
If Grantor fails to perform any of Grantor’s obligations, Lender may perform those
obligations and be reimbursed by Grantor on demand for any amounts so paid,
including attorney’s fees, plus interest on those amounts from the dates of payment at
the rate stated in the Note for matured, unpaid amounts. The amount to be reimbursed
will be secured by this deed of trust.
6.
If there is a default on the Obligation or if Grantor fails to perform any of Grantor’s
obligations and the default continues following any applicable Cure Period, as defined
herein, Lender may—
a.
declare the unpaid principal balance and earned interest on the Obligation
immediately due;
b.
direct Trustee to foreclose this lien after appropriate written notice to Grantor
and Grantor’s lenders, in which case Lender or Lender’s agent will cause notice
of the foreclosure sale to be given as provided by the Texas Property Code as
then in effect; and
c.
purchase the Property at any foreclosure sale by offering the highest bid and
7.
8.
then have the bid credited on the Obligation.
Lender may remedy any default without waiving it and may waive any default without
waiving any prior or subsequent default.
Written notice of any default under this deed of trust and written notice of the
commencement of any action to foreclose or otherwise enforce the provisions hereof
must be given to the holder of a Construction Lien (as defined herein), if any,
concurrently with or immediately after the occurrence of any such default or
commencement.
C.
Trustee’s Rights and Duties
If directed by Lender to foreclose this lien, Trustee will—
1.
either personally or by agent give notice of the foreclosure sale as required by the Texas
Property Code as then in effect;
2.
sell and convey all or part of the Property “AS IS” to the highest bidder for cash with a
general warranty binding Grantor, subject to any prior lien and to the Other Exceptions
to Conveyance and Warranty and without representation or warranty, express or
implied, by Trustee;
3.
from the proceeds of the sale, pay, in this order—
a.
expenses of foreclosure, including a reasonable commission to Trustee;
b.
to Lender, the full amount of principal, interest, attorney’s fees, and other
charges due and unpaid;
c.
any amounts required by law to be paid before payment to Grantor; and
d.
to Grantor, any balance; and
4.
be, to the extent allowed by law, indemnified, held harmless, and defended by Lender
against all costs, expenses, and liabilities incurred by Trustee for acting in the execution
or enforcement of the trust created by this deed of trust, which includes all court and
other costs, including attorney’s fees, incurred by Trustee in defense of any action or
proceeding taken against Trustee in that capacity.
D.
General Provisions
1.
If any of the Property is sold under this deed of trust, Grantor must immediately
surrender possession to the purchaser, subject to a right of redemption and subject to all
liens. If Grantor fails to do so, Grantor will become a tenant at sufferance of the
purchaser, subject to an action for forcible detainer.
2.
Grantor and any lender that has a secured interest in any improvements on the Property
(“Grantor Lender”) shall have a right of redemption for one year from the foreclosure
date. The right of redemption shall be exercised by Grantor or Grantor Lender within
one year by notifying the then owner of the Property in writing it exercises its
redemption option and paying the then owner 110% of the price it was sold for at the
foreclosure sale.
3.
Proceeding under this deed of trust, filing suit for foreclosure, or pursuing any other
remedy will not constitute an election of remedies.
4.
If any portion of the Obligation cannot be lawfully secured by this deed of trust,
payments will be applied first to discharge that portion.
5.
Grantor assigns to Lender all amounts payable to or received by Grantor from
condemnation of all or part of the Property, from private sale in lieu of condemnation,
and from damages caused by public works or construction on or near the Property. After
deducting any expenses incurred, including attorney’s fees and court and other costs,
Lender will either release any remaining amounts to Grantor or apply such amounts to
reduce the Obligation. Lender will not be liable for failure to collect or to exercise
diligence in collecting any such amounts. Grantor will immediately give Lender notice of
any actual or threatened proceedings for condemnation of all or part of the Property.
6.
Interest on the debt secured by this deed of trust will not exceed the maximum amount of
7.
nonusurious interest that may be contracted for, taken, reserved, charged, or received
under law. Any interest in excess of that maximum amount will be credited on the
principal of the debt or, if that has been paid, refunded. On any acceleration or required
or permitted prepayment, any such excess will be canceled automatically as of the
acceleration or prepayment or, if already paid, credited on the principal of the debt or, if
the principal of the debt has been paid, refunded. This provision overrides any
conflicting provisions in this and all other instruments concerning the debt.
In no event may this deed of trust secure payment of any debt that may not lawfully be
secured by a lien on real estate or create a lien otherwise prohibited by law.
8.
Grantor may sell, transfer, or otherwise dispose of any Property, without the
prior written consent of Lender and the new owner of the Property shall assume
this loan.
10.
As used herein, the term “Cure Period” shall mean (i) with respect to a payment default,
thirty (30) days after written notice of such default is given to Grantor, (ii) sixty (60) days
after written notice of default is given with respect to non-monetary defaults which can
reasonably be cured within sixty (60) days, and (iii) for non-payment defaults which
cannot reasonably be cured within sixty (60) days, such additional period of time as may
be reasonably necessary to complete the cure so long as Grantor commences the cure and
diligently prosecutes it to completion within 180 days after written notice of default is
given to Grantor. All notices of default will be deemed to be given when deposited in the
U.S. Mail, certified mail, return receipt requested, postage prepaid, addressed to Grantor
at its address set forth in this deed of trust, or to such other address as Grantor may
hereafter notify Lender as its address for notices under this deed of trust.
When the context requires, singular nouns and pronouns include the plural.
The term “Note” includes all extensions, modifications, and renewals of the Note and all
amounts secured by this deed of trust.
This deed of trust binds, benefits, and may be enforced by the successors in interest of all
parties.
If Grantor and Borrower are not the same person, the term “Grantor” includes Borrower.
Grantor and each surety, endorser, and guarantor of the Obligation waive all demand for
payment, presentation for payment, notice of intention to accelerate maturity, notice of
acceleration of maturity, protest, and notice of protest, to the extent permitted by law.
Grantor agrees to pay reasonable attorney’s fees, trustee’s fees, and court and other costs
of enforcing Lender’s rights under this deed of trust if this deed of trust is placed in the
hands of an attorney for enforcement.
If any provision of this deed of trust is determined to be invalid or unenforceable, the
validity or enforceability of any other provision will not be affected.
The term “Lender” includes any mortgage servicer for Lender.
The debt evidenced by the Note is in payment of the purchase price of the Property.
Provided that a Default has not occurred and is continuing, Grantor shall be entitled to
request a release of any platted lot located in the Property described in Exhibit A
attached hereto from the lien of this Deed of Trust upon satisfaction of the following
terms and conditions:
(a)
Grantor shall deliver to Lender a written request for the release of a platted lot
together with payment to Lender of the Release Price (herein so called) for the lot
to be released, which Release Price shall be a pro-rata proportion of the
outstanding Obligation equal to the proportion of the Property being released;
(b)
Grantor shall pay all expenses arising in connection with the release of such lot,
including, without limitation, reasonable attorneys' fees incurred by Beneficiary
in connection with such release; and
(c)
Grantor shall satisfy any other reasonable requirements of Beneficiary.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
Grantor:
By:
___________, ___________
THE STATE OF TEXAS
COUNTY OF TARRANT
§
§
§
This instrument was acknowledged before me on this the ___ day of ____________, 2014 by
_________________, ___________ of Old Town Development Lewisville, LLC.
______________________________
NOTARY PUBLIC, STATE OF TEXAS
Personalized Notary Seal
AFTER RECORDING RETURN TO:
___________________
___________________
___________________
Exhibit A
Legal Description
Tract 2;
more or less.
Attachment “D”
DEED RESTRICTION
The Property conveyed herein shall not be used for any purpose other than indoor/outdoor
restaurant space and ancillary facilities with a minimum of 15,000 square feet.
The restriction on the Property shall not be altered, amended, or terminated unless such
alteration, amendment or termination is approved by a majority vote of the City Council of the
City of Lewisville, Denton County, Texas.
The restriction contained herein inures to the benefit of the City of Lewisville, Denton County,
Texas and Grantee does hereby grant to the City of Lewisville, Texas, the right to prosecute, at
law and in equity, against the person or entity violating or attempting to violate such restriction,
either to prevent him, her or it from so doing or to correct such violation and for further remedy
the City of Lewisville, Denton County, Texas may withhold the building permit or certificate of
occupancy necessary for the lawful use of the applicable lot or lots within the Property until such
restriction described herein is fully complied with as determined in the sole opinion of the City
of Lewisville, Denton County, Texas.
The City of Lewisville, Denton County, Texas, its successors, and assigns have the right to
enforce by any proceeding at law or in equity the restriction imposed upon the Property. Failure
to enforce the restriction herein contained shall in no event be deemed a waiver of the right to do
so thereafter.
The restriction herein contained shall run with and bind the Property and shall inure to the
benefit of and be enforceable by the City of Lewisville, its successors and assigns and shall be
effective for a term of fifteen (15) years from the date of the issuance of a certificate of
occupancy for the first building on the Property.
Page 25

Lewisville City Council

Transcription

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