FY 2017 Popular Annual Financial Report FY 2017 Popular Annual Financial Report | Page 21

Accounting Terminology
General Fund: The chief operating fund
of the City
Enterprise Funds: Water, Sewer and
Stormwater Utilities funded by fees
charged to users
Capital Outlay: Funds spent to purchase
or construct buildings, machinery,
vehicles, etc.
Total Fund Balance: The difference
between assets and deferred outflow
of resources and liabilities and deferred
inflow of resources of a fund
Nonspendable Fund Balance: The
portion of fund balance that cannot be
spent because the underlying resources
are not in spendable form
Restricted Fund Balance: The portion of
fund balance that represents resources
subject to externally enforceable
constraints
Committed Fund Balance: The portion
of fund balance that represents
resources whose use is subject to
legally binding constraints imposed by
the City itself
Assigned Fund Balance: The portion of
fund balance set aside by the City for a
particular purpose
Unassigned Fund Balance: The
difference between total fund balance
and its nonspendable, restricted,
committed and assigned components
Government-wide: The City as a whole
Governmental Activities: The City’s basic
services such as Police, Fire, Public
Works and Parks, which are mostly
funded by property tax, sales tax and
franchise fees
Infrastructure Assets: Stationary
assets of the City that include streets,
sidewalks, water, sewer and drainage
systems
Net Pension Liability: The difference
between the total pension liability (the
present value of projected benefit
payments to employees based on their
past service) and the assets (mostly
investments reported at fair value) set
aside in a trus t and restricted to paying
benefits to current employees, retirees,
and their beneficiaries
Net Position: The difference between
assets and deferred outflow of resources
and liabilities and deferred inflow of
resources for the City as a whole
TMRS: Texas Municipal Retirement
System
FY17 Important Facts
Trend Variances
Founded 1884
Incorporated 1887
County Tarrant
Assessed Property Values
$21.3 billion
City Tax Rate $0.6398 per $100 valuation
Sales Tax (in thousands)
$105,352
• The City’s increase in total net
position of $22.6 million for the
year was $52.1 million lower than
the $74.7-million increase in net position reported last year. The increase in the
current year is primarily related to increased revenues in excess of expenses in the
City’s business-type activities as well as an overall increase in the net investment in
capital assets compared to the prior period. The Water and Sewer and Stormwater
Utility’s net position increased by $26 million in fiscal year 2017 compared to $26
million in fiscal year 2016.
• Governmental activities revenue increased compared to the prior year, rising
overall by 4.4%. Sales and property tax revenue accounted for the majority of the
increase this year compared to last.
• Overall, expenditures increased approximately $30.9 million (6.5%) from the
prior year. Growth over all categories is primarily attributed to increased pension
expenses. In addition, in all categories (other than interest and fiscal charges) there
were salary increases ranging from 4.2% to 8.4%. Higher expenses in business-type
activities were primarily for the cost of purchasing water and sewage treatment.
• The 2017 General Fund assigned fund balance was $61.6 million with $.03 million
unassigned, an overall slight increase in the aggregate from prior year. In 2016,
the comparable balances were $60.9 million and $.48 million. Fund balance
assignment changes in the General Fund include increases in encumbrances,
working capital and subsequent years’ expenses of $.28 million, $.34 million and
$.30 million, respectively. Decreases in Park Performance and unassigned funds
balance of $.08 million and $.45 million were also noted.
• Total debt of $719.8 million increased $23.2 million during the year. Debt issues in
2017 include $58.4 million in Permanent Improvement Bonds and $18.2 million
in Permanent Improvement Refunding bonds, $6.1 million in Combination Tax
and Revenue Certificate of Obligation Bonds, $110.2 million in Senior Lien Special
Tax Revenue Refunding Bonds, $40.3 million in Water and Wastewater System
Revenue bonds, $9M in Municipal Drainage Utility System Revenue Bonds, and
$4.8 million bonds related to the Texas Water Development Board (TWDB) Clean
and Drinking Water Programs. Bond principal payments for 2017 total $224 million
on existing obligations with an additional $128.4 million in principal refunded.
Exclusive of special venue debt, City of Arlington debt is allocated 63% for general
government, with the remaining 37% to water, wastewater and stormwater
activities.
Popular Annual Financial Report
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