Statement of Net Position

C I T Y O F F O R N E Y

March 1, 2022

Honorable Mayor and City Council City of Forney Forney, Texas

Dear Mayor and Council Members,

The Annual Comprehensive Financial Report (“ACFR”) of the City of Forney, Texas, for the year ended September 30, 2021, is submitted herewith.

Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal control that is established for this purpose. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements.

Pattillo, Brown & Hill, LLP., have issued an unmodified (“clean”) opinion on the City of Forney’s financial statements for the year ended September 30, 2021. The independent auditor’s report is located in the beginning of the financial section of the ACFR.

This letter of transmittal is designed to compliment Management’s Discussion and Analysis (“MD&A”) and should be read in conjunction with it. The City’s MD&A can be found immediately following the independent auditors’ report and provides a narrative introduction, overview and analysis of the basic financial statements.

General Information – City of Forney The City of Forney (“City”) was incorporated in 1910 and currently has an estimated population of 26,820. The City operates as a Home Rule City, under a Council-Manager form of government with the Mayor and six Council members elected at large.

The City’s major operations include police and fire protection, planning, building inspections, finance, parks and recreation, public works, and general administrative services. In addition, the City owns and operates a water and sewer system.

Economic Conditions and Outlook Forney, Texas is one of the fastest growing communities in the DFW area. Strategically located between Highway 80 and Interstate 20, population has increased 75% in the last decade. Despite the increasing population, the city has managed to maintain a vibrant, family-centered lifestyle 101 E. Main Street.  P.O. Box 826  Forney, Texas 75126  972.564.7300  cityofforney.org

C I T Y O F F O R N E Y

and community leaders carefully weigh growth opportunities against quality of life issues and sustainability. The City continues to work with developers to expand and diversify available retail opportunities with the Forney Marketplace and Gateway developments.

Economic conditions continue to present challenges in budget development and forecasting. However, moderate growth continues in several key indicators. Sales tax continues to trend upward and ended the year with a 24.53% increase over the previous year’s collections. New construction remains very active. These factors coupled with planned projects scheduled to begin in the near future, cause us to remain optimistic regarding Forney’s future opportunities.

Major Initiatives The City Council has identified Strategic Plan Objectives, and most of the major initiatives are directly related to those objectives. Major initiatives for 2021 focused on reconstructing or repairing streets, improving parks and recreation opportunities, and expanding City office space and parking for additional personnel. Additionally, sewer infrastructure was expanded to encourage commercial growth.

Accounting Procedures and Budgetary Controls The City’s accounting records for general government 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.

The budgetary process begins each year with the preparation of both current and proposed year revenue estimates by the City Manager’s Office, and expenditure estimates by each City department. Budgets are reviewed by the City Manager who makes final decisions and submits a recommended budget to the City Council.

As part of each year’s budget development process, departments are required to update expenditure estimates for the current fiscal year. These estimates are reviewed by the City Manager’s Office and the City Council concurrent with review of the proposed budget. The reestimated 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.

In an effort to stay within budget, the Assistant Finance Director reviews expenses weekly and provides each department director their departments expense report. Each department director reviews their report and directs any questions to the Assistant Finance Director for further review.

101 E. Main Street.  P.O. Box 826  Forney, Texas 75126  972.564.7300  cityofforney.org