FY 2018 Popular Annual Financial Report FY 2018 Popular Annual Financial Report | Page 21

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Accounting Terminology
FY18 Important Facts
General Fund: The chief operating fund of the
City
Founded 1884
Incorporated 1887
County Tarrant
Assessed Property Values
$23.5 billion
City Tax Rate $0.6348 per $100 valuation
Sales Tax (in thousands)
$109,645
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
Trend Variances
Committed Fund Balance: The portion of fund
balance that represents resources whose use is
subject to legally binding constraints imposed
by the City itself • The City’s overall decrease in total net position of $1M for the year was
$23.6M lower than the $22.6M increase in net position reported last year.
The decrease in the current year is primarily related to the recording
of the total OPEB liability. The decrease in Governmental Activities
(governmental) net position of $30M was offset by Water and Sewer and
Stormwater Utility’s (water) net position increase of $29M in the current
year. This compares to prior-year net position decrease of $3.7M in
governmental and increase of $26.3M in water in FY17.
Assigned Fund Balance: The portion of fund
balance set aside by the City for a particular
purpose • Governmental activities general revenue increased compared to the
prior year, increasing overall by 8.4%. Sales and property tax revenue
accounted for the majority of the increase this year compared to last.
Unassigned Fund Balance: The difference
between total fund balance and its
nonspendable, restricted, committed and
assigned components • Overall, expenditures increased approximately $72M (14.1%) from the
prior year. Increases over all categories are primarily attributed to
recording OPEB expenses. Public welfare expenses increased primarily
due to increased capital outlay compared to the prior year. Interest and
fiscal charges increased due to higher interest and increase in bond-
related expenses. Increases in expenses in business-type activities were
primarily for the cost of purchasing water and sewage treatment.
Restricted Fund Balance: The portion of fund
balance that represents resources subject to
externally enforceable constraints
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
trust and restricted to paying benefits to current
employees, retirees, and their beneficiaries
Other Post Employment Benefit (OPEB) Liability:
Benefits other than pensions that state and local
governments provide their retired employees.
Beginning in FY18, the liability is required to be
recorded on the government-wide statement of
net position.
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
Financial
• The 2018 General Fund assigned fund balance was $61.6M with $3.4M
unassigned, an overall slight increase in the aggregate from prior year. In
2017, the comparable balances were $61.6M and $.03M. Fund balance
assignment changes in the General Fund include increases in working
capital and subsequent years’ expenses of $1.1M and $8.0M. Decreases
in dispatch and information technology unassigned fund balance of
$.39M and $.13M were also noted.
• Total debt of $1.24B increased $552M during the year. Debt issues
in 2018 include $54.2M in Permanent Improvement Bonds, $5.1M
in Combination Tax and Revenue Certificate of Obligation Bonds,
$465.4M in Senior Lien Special Tax Revenue Bonds, $32.7M in Water and
Wastewater System Revenue bonds, $5.5M in Municipal Drainage Utility
System Revenue Bonds, and $16.1M bonds related to the Texas Water
Development Board (TWDB) Clean and Drinking Water Programs. Bond
principal payments for 2018 totaled $55.9M on existing obligations.
Exclusive of special venue debt, City of Arlington debt is allocated 61%
for general government, with the remaining 39% to water, wastewater,
and stormwater activities.
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