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21-R-54 Bexar Metro 911 FY 2022 Budget and annual report041M a Itat, )WHEREAS, Bexar Metro 911 provides 911 telephone access for Bexar, Comal, and Guadalupe Counties by developing and maintaining a reliable emergency communication telephone network; and VVHEREAS, since its inception in 1987, the Bexar Metro 911 authority has operated with the same fees for wired phone lines without any increase in those fees for thirty years; and )WHEREAS, the City Council has determined that it is in the best interest of the City to support the growth and expansion of the 911 telephone access systems as planned for in the 2022 budget attached hereto as Exhibit A, for the public safety of Schertz citizens. "861FIN Section 5. If any provision of this Resolution or the application thereof to any person ir circumstance shall be held to be invalid, the remainder of this Resolution and the applicatim *f such provision to other persons and circumstances shall nevertheless be valid, and the City Council hereby declares that this Resolution would have been enacted without such invalid provision. Section 6. It is officially found, determined, and declared that the meeting at which this Resolution is adopted was open to the public and public notice • the time, place, and subject matter of the public business to be considered at such meeting, including this Resolution, was given, all as required by Chapter 5 5 1, Texas Government Code, as amended. Section 7. This Resolution shall be in force and effect and after its final passage, and it is so resolved. ATTEST: -nnis 50506221.1 - 2 - On behalf of the Bexar Metro 9 -1 -1 Network Board of Managers and staff, I am proud to present to you the Bexar Metro Fiscal Year 2020 Annual Report. This publication provides accounting of Bexar Metro's Fiscal Year 2020 revenues, required expenditures, and an overview of the critical services the District provided to our forty (40) participating jurisdictions during the year. I believe you will be impressed with the breadth and quality of emergency communication services the District provides to the citizens of Bexar, Comal, and Guadalupe Counties. The Quarry Run Regional Operations Center continues to support not only its anchor tenant, Bexar County Public Safety Communications, but stands ready to serve as a backup to the twenty (20) Emergency Communications Centers (ECCs) providing 9 -1 -1 services within the District. The readiness and viability of this critical facility were tested several times in 2020 through a combination of planned ECC relocations supporting building remodels, pilot projects testing split 9 -1 -1 call handling operations, and contingency relocations due to equipment or power failure. Bexar Metro welcomes your feedback and any questions on the information presented in both the Annual Report and Audit Report. Please do not hesitate to contact Brett Schneider, Executive Director, at the District offices with questions concerning the reports or any services provided by the District. He can be reached at (210) 408 -3911 or via email at bschneider bexarmetro.or . Thank you for your continued support of the Bexar Metro 9 -1 -1 Network. The authority for the Bexar Metro 9-1-1 Network ie Texas Health and Safety Code, Chapter 772.Subchapter D. Section 772.301 —formerly Vernon's Annotated Civil Statutes Article 1432e, as approved by the Texas 09"' Regular Legislative Session in Senate Bill 750 on May 21, 1985, and subsequently approved by local election 0n January 17.1987. The BexarMetro Board is the governing body appointed by member counties and municipalities and has the statutory authority to control and manage the District by providing oversight of policy and fiscal matters. The Executive Director ufBexar Metro is appointed by the Board and is responsible for the overall management Of District matters. The following is8list of the 2020 Board of Managers and the entities that they represent: James C.Haee|ooher(Chainnan) Stephen R.Schneider Judge Sherman Krause Dudley Wait Heb8rt0GuUSrnez Chief William K4CK8@OUS Cathy C. Tu|oott Suzanne de Leon James C. Stephen R. Judge Sherman Hasslocher Schneider Krause BexarCountv Bgx8rCOuntv Coma|Countv Guadalupe County City of San Antonio City of San Antonio City VfNew Braunfels Bexar County Council of Mayors Dudley oebertn Chief William Cathy C. Suzanne Wait Gutierrez McManus Talcott de Leon The mission of the Bexar Metro 9 -1 -1 Network (Bexar Metro or District) is to ensure the citizens of Bexar, Coma[, and Guadalupe Counties have immediate access to emergency services regardless of technology or type of device. In 2020, the District's 9 -1 -1 system processed approximately 1.8 million emergency requests. To ensure we remain in a position to provide the highest caliber of service to our citizens, participating jurisdictions, and the Emergency Communications Centers (ECCs) we support, it is imperative we continue to evolve with technology and provide the resources — in both equipment and training — to guarantee the ECCs have the tools necessary to facilitate a quality public safety response. The 9 -1 -1 technology we provide, coupled with the six hundred and twelve (612) dedicated 9 -1 -1 professionals serving at the front -line of the emergency response cycle, serve as the public's lifeline to Police, Fire, and Emergency Medical services. After several years of planning and design, we will soon begin the systematic transition of all twenty -one (21) ECCs from the current digital 9 -1 -1 selective routing system to the new, IP -Based Next Generation Core Services (NGCS) platform. We anticipate the transition to begin in September, with all locations on the new system by end of year. The next phase of the project, the rehome and further diversification of over two hundred (200) wireline central office, Voice over IP (VoIP), and wireless carrier interconnection points, will begin in early 2022. Once complete, the NGCS architecture will set the foundation for the integration of future technologies and, more importantly, achieve a greater level of system redundancy and diversity than available in today's 9 -1 -1 network. This annual report provides a summary of revenues and expenses incurred by Bexar Metro during 2020 in support of our mission to provide quality Enhanced 9 -1 -1 service. In addition to the financial aspect, a synopsis of major accomplishments and system enhancements, many related to the aforementioned NGCS project, are included. The overarching goal of each system enhancement or project initiated by the district is to further strengthen, safeguard, and improve upon the 9 -1 -1 lifeline serving the 2.3 million citizens residing within the district. Bexar Metro remains committed to providing our citizens with one of the most technologically advanced and resilient emergency communications systems in the nation. Please do not hesitate to contact me at (210) 408 -3911 for additional information on our programs or if I can be of service. Respectfully, Brett Schneider, ENP Executive Director DISTRICT AccomPLISHMENTS • Enhanced network diversity and redundancy between the Vesta Host Systems and ECCs with the transition from a network auto - failover to a dual path, diverse access design • Created a Network Operations Center (NOC) for 9 -1 -1 technicians and staff to monitor 9 -1 -1 network, core equipment, and call activity to proactively address potential issues before they impact emergency call delivery • Next Generation 9 -1 -1 - Initiated project to transition twenty -one (21) Emergency Communications Centers (ECCs) to the AT &T Next Generation Core Service (NGCS) platform, providing greater 9 -1 -1 selective routing resiliency and diversity through a nationwide core of six selective routing systems • Began transition of current tertiary LTE back -up solution to FirstNet • Increased Quarry Run fiber and copper infrastructure by 50% to enhance capacity and diversity between building demarcation points, data centers, and areas housing public safety infrastructure • Created an Incident Security Operations Center (ISOC) at the Saddletree headquarters equipped to monitor, detect, and mitigate cyber - attacks on the 9 -1 -1 administrative and critical networks supporting public safety operations at Quarry Run • Redesign of proposed Bexar Metro network to NGCS interconnection to increase 9 -1 -1 call ingress and egress paths for enhanced diversity and redundancy • Created an implementation plan to transition 9 -1 -1 routing core infrastructure to an Ether Channel, high availability design in conjunction with NGCS deployment • Achieved 99.75% match rate, exceeding the National Emergency Number Association (NENA) standard for data synchronization between the Master Street Address Guide (MSAG), Automatic Location Information (ALI) Database, and Geographic Information Systems (GIS) data • Executed a contract with Sanborn for high accuracy oblique and ortho imagery data and developed interim solution to support z -axis (vertical) location accuracy requirements mandated by the Federal Communications Commission (FCC) • Renovated the former Regional Emergency Operations Center space at : Saddletree to support ISOC operations • Upgraded Data Center B power and HVAC to accommodate increased customer data center presence and expanded footprint • Implemented new policies, procedures, equipment, and services to mitigate the spread of COVID -19, not only in the Bexar Metro facilities, but, also the ECCs as well. As many of us know, we have had quite a year in the network and cyber security realm. This includes not only the build -out of our Network Operations Center (NOC) at Quarry Run and the Incident Security Operations Center (ISOC) at Saddletree, but also the stand -up of the monitoring and reporting software (SolarWinds) for observing both the 9 -1 -1 and administrative networks. The NOC at Quarry Run has seen the biggest transformation, both physically and functionally. The WebEx Room Kit doubles as NOC display boards. When not functioning as display units for meetings, the screens display vital network maps and Vesta Activity View dashboards. The physical layout of the room further serves the purpose of a NOC allowing individual workstation views of the dashboards and interaction via WebEx in the event of remote collaboration. Saddletree has also seen a metamorphosis in the old Regional Emergency Operations Center (REOC) area. The addition of these WebEx Room Kits and interactive boards has also enabled this space to serve as a Incident Security Operations Center (ISOC) while simultaneously leveraging WebEx collaboration. The large open area further enables collaboration within the room while facilitating interaction with remote users during incident response. When not using the WebEx meeting capabilities, the screens display vital network statistics, cyber security incidents, and traffic analysis data. Much of this newfound data being displayed in the NOC and ISOC are a result of the newly implemented network monitoring and alerting solution called SolarWinds. SolarWinds is gathering information from not only Bexar Metro's internal systems, but also from the 9 -1 -1 network infrastructure. This platform can see into network devices and report on a myriad of information, including utilization of individual links, system processing capabilities, any errors or misconfigurations, and traffic flow data. Having all this information in a central place allows Bexar Metro to analyze traffic and system information, to receive alerts on any anomalies, and even to plot growth patterns for predictive forecasting. Expanding the capability to monitor 9 -1 -1 systems, network traffic, and security events represents Bexar Metro's commitment to not only provide unprecedented service to our residents and the ECCs that service them, but also position the District as a leader in the nation for 9 -1 -1 service and network operations and security. TRANSITIONING O NEXT GENERATION • What is Next Generation 9 -1 -1? Next Generation 9 -1 -1 (NG9 -1 -1) replaces Enhanced 9 -1 -1 by adding additional capabilities to support changes for current and new types of Originating Service Providers. NG9 -1 -1 adds flexibility for Emergency Communications Centers (ECCs) and 9 -1 -1 Authorities, as well as adding features to integrate and interoperate with emergency entities beyond the ECC. There are various reasons why migration to Next Generation 9 -1 -1 is essential. There is a fundamental shift in the telecommunications landscape, moving away from the older technology of central offices and the circuit switch infrastructure. This architecture was primarily designed for voice communications and interconnecting voice callers. With the advent of computer broadband, data networks have evolved differently, because this data has different demands. Furthermore, communications are becoming more and more mobile, resulting in the old circuit - switched landlines being phased out. The telecommunication carriers are replacing their old infrastructure with new IP -based switches that can simultaneously handle voice and data within the infrastructure across the shared network. As a consequence, the legacy selective routers are nearing the end of their life cycles. Bexar Metro and AT &T signed a contract to begin the rollout of one of Texas' first Emergency Services Internet Protocol Networks (ESlnet), and staff began working on the deployment of this network during the first quarter of 2020. NG9 -1 -1 utilizes an ESlnet, IP based services and applications, Databases and Data Management which connect to ECCs by employing spatial routing to deliver emergency calls. Deployment of an ESlnet will allow the caller to transmit text messages, images, video, and vital related data to the ECCs. NG9 -1 -1's intention is to be a system of systems interconnected at local, regional, state, federal, national, and international levels to form an IP -based inter - network (network of networks). There may be several ESlnets deployed within the State of Texas that can service many ECCs and allow for sharing of cost and resources. The ESlnet is the transport mechanism, so rather than having a Centralized Automatic Message Accounting (CAMA) trunk from point A to point B, in the future we will have an IP network - but not just any IP network. The network will be secure, reliable, private, and managed for emergency communications services. It will be public safety grade, meaning that its uptime should be 99.999 %. The network will be shared by all public safety agencies. By adopting the same networking standards as most of the other industries, which is known as i3, we will be essentially paving the way for features and abilities that traditional trunking cannot do. The ESlnet is not i3 architecture or NG9 -1 -1 but will provide infrastructure for i3 core functional processes, NG9 -1 -1 services, and interoperable agencies. Current call delivery to 9 -1 -1 ECCs utilizes central offices, regulated telecommunications service providers, and known networks. As we transition to NG9 -1 -1, the network will become an IP -based network with additional security known as a Border Control Function (BCF). The BCF acts as a gateway or firewall into the Next Generation system. The current call location data consists of the customer address, the Emergency Service Zones (ESZs) and the Master Street Address Guide (MSAG), which collectively form the Automatic Location Information (ALI) displayed at the ECCs. In NG9 -1 -1, the MSAG function will be replaced by the Location Validation Function, which will more efficiently validate an address. The Location Database effectively does the roles of both the ALI database and the Location Information Server, which is a functional element providing locations of endpoints (i.e., calling device) in an IP- capable originating network. The current Selective Router will be replaced with an Emergency Service Routing Proxy, while our Selective Router Database will be replaced with an Emergency Call Routing Function (ECRF) and Policy Routing Function (PRF). The ECRF is a functional element that returns a route to the appropriate ECC for the caller's location (either civic address or geo- coordinates). Should that ECC be busy, the PRF determines the next hop in the path so those calls can be answered by the alternate ECC. A large component of spatially routing the 9 -1 -1 calls in an ESlnet involves a Geographic Information System (GIS), which is a system for capturing, storing, displaying, analyzing, and managing geographically referenced information and the associated attributes. A GIS is not a map, but a relational database. For years, Bexar Metro staff have maintained GIS data layers for our ECCs. The GIS data was put to rigorous comparisons to validate topology features of the datasets against the MSAG and ALI data. The National Emergency Number Association (NENA) recommends that MSAG and GIS data reach a 98% or greater match rate before using GIS data for NG9 -1 -1. Bexar Metro has maintained an in -house 99% match rate by comparing our ALI and MSAG data to our GIS data. Upon the initial load of Bexar Metro's GIS data layers to the Enterprise Geospatial Database Management System (EGDMS), 99.75% of the features were loaded without any critical errors. Next Generation 9-1-1 Geographic Information s FIRE fPQLYCON) Strongly Recommended: EMI (POLYGON) ' • Site/Structure Address Points Road (carne Alias Table PSAP IPOL9'CON) Cell Site and Sectors Municipal, Coun% State Boundaries The ESlnet is virtually engineered from the ground up to carry these various data types, along with traditional voice, while being exceptionally secure and available. New ways to share information across the public safety network is poised to change the way we do business more than any other advances in the past. There will be significant human resource impacts to the 9 -1 -1 call takers, who may experience increased workloads and the need for new training to respond to these new communication types. As the District transitions to NG9 -1 -1 and experiences significant changes to our network and business model, Bexar Metro staff continue to utilize national industry standards as guidance for deployment. TRAINING & EDUCATION As the Bexar Metro Training Program continues to grow, develop, and implement various training and educational programs, it is also expanding into the virtual training world. In 2020, 561 telecommunicators attended various types of training, utilizing web -based programs to communicate. COVID -19 shutdown all in- person training presenting many challenges. However, we managed to accomplish and provide 3,915 training hours. Below are some of the training courses we were able to complete utilizing virtual instruction: 1. Denise Amber Lee: A Victim's Plea 2. HOPE IN THE MIDST OF CHAOS: The Las Vegas Shooting 3. Communications Training Officer 4. Customer Service and the COVID Connection 5. Domestic Violence — Isolation with Your Abuser 6. Suicide and Crisis in the COVID era 7. 9 -1 -1 Stress Strategies —A Heroes Choice Texas Commission on Law Enforcement (TCOLE), is the governing entity overseeing training, amongst other areas of law enforcement. Some of the rules implemented by the TCOLE are as follows: 1. All training courses must be approved by the TCOLE prior to implementation. 2. No licensure course training, no exceptions. 3. No cellular telephone training: all training must be received on a laptop or desktop computer with a camera so the instructor has visual contact with students at all times. Bexar Metro accomplished an important milestone with the Department of Public Safety (DPS). Our training department was the only one out of the entire state approved to train the state mandated TCICITLETS. This accolade was due to several factors, including: 1. Training record history and course critiques over the course of 23 years. 2. Knowledge and enforcement of course policies. 3. Using the paid version of WebEx meetings. Bexar Metro also launched a training website, a first at Bexar Metro. This resource is limited to only those currently employed at the agencies in our three - county service area, Bexar, Comal, and Guadalupe Counties. Our trainer, Denera White, has the task of confirming employment rosters with each agency every 6 to 8 weeks. All agencies are aware that if an employee is terminated, Bexar Metro is to be notified immediately so that access to the affected account may be suspended. New employees must be registered into for access. Bexar Metro maintains ultimate control over access to the training system. This new website allows us to post courses, take registrations, maintain a waiting list for classes, provide automated course critiques, certificates and more. We are excited about this new adventure and cannot wait to expand and host courses elsewhere as well. The website allows for keeping track of that also! Beiar MetTnn911 Educ on and Nvdopment I s In conclusion, despite COVID challenges, the Training department was able to find other ways to implement training via virtual technologies, accomplishing and even exceeding our goals for the year. More than 95 percent of the total funding for the Bexar Metro 9 -1 -1 Network ( Bexar Metro or District) is generated by emergency service fees on telephone services, including traditional wireline, wireless, private switch and Voice over Internet Protocol (VoIP). These small monthly service fees collected on behalf of the District by telephone service providers in Bexar, Comal, and Guadalupe counties fund the planning and implementation as well as the operations and maintenance of one of the premier Enhanced 9 -1 -1 systems in the nation. The Bexar Metro annual budget is adopted by its Board of Managers each year after the governing bodies of each of the 40- member jurisdictions have had the opportunity to review, consider, and approve a draft version. Budget expenditures required for the 9 -1 -1 operation is divided into two primary sections: the Operations and Maintenance (O &M) expenditures and the Capital expenditures. The O &M expenditures provide for the ongoing management of existing operations while the Capital expenditures, including funds transferred from the capital reserve fund, provide for current and future enhancements to District Operations. The District's Capital Reserve Fund is set aside for those enhancements. Currently, the majority of the Bexar Metro Capital Reserve Fund is dedicated to the cost associated with the current NGCS project and a 9 -1 -1 core, call - handling, and mapping system refresh planned for 2024 -2025. Bexar Metro has, from the start, adhered to a policy of sound fiscal planning and management and has never borrowed funds. Because of strong leadership, the District is in a strong fiscal position to meet its future obligations while continuing to enhance the services it provides to the citizens it serves. } 1 { r ry+s LEGEND f� ;•� tee' � yv �' ,I,t j` 6 Y S4 )i {il 4 4 iJ1 i, § NEW BRAUNFELS PD C4STLE HELLS PD SAN ANTONIO PCP FIRE /EMS COMALCOUNTYSHERIFF Tom SCHERTZPD GUADALUPE COUNTY SHERIFF SEQUIN PD HELI?TES PD = UNIVERSAL CITY PCP ' " 7BSA FT. SAM HOUSTON UTSA PD 17 BSA LACKLAND `+ INDCREST PCP =I BSA RAN DOLPH >�i}7J 1l tiffs tltt s + };tt nt�`!4 {1 {�f l,'i i„ S5 irltf.4ui {ij it !sf }�4 S`tt it,t £: s } 1 { r ry+s LEGEND Emer5gencV Communications Centers (ECLs ALAiMO HEIGHTS PCP KIRBY PD BALCONE5 HEIGHTS PD ". LIFE OAK PD BEXAR COUNTY SHERIFF NEW BRAUNFELS PD C4STLE HELLS PD SAN ANTONIO PCP FIRE /EMS COMALCOUNTYSHERIFF Tom SCHERTZPD GUADALUPE COUNTY SHERIFF SEQUIN PD HELI?TES PD = UNIVERSAL CITY PCP ' " 7BSA FT. SAM HOUSTON UTSA PD 17 BSA LACKLAND `+ INDCREST PCP =I BSA RAN DOLPH Bexar Metro 9-1-1 Network Fiscal Year 2020 Budget Summary FY 2020 Budget Revenue 9-1-1 Service Fee Revenue $ 15,417,508 Interest Income $ 228,500 Miscellaneous $ 312,500 Total Revenue $ 15,958,508 Planned Reserve Transfer $ 1,012,645 Previous Year Carry-Over $ - Total Funds Available $ 16,971,153 Expenditures FY 2020 Actual $ 15,352,532 $ 143,027 $ 325,894 $ 15,821,453 $ 15,821,453 Personnel Services $ 3,164,046 $ 3,033,708 Operations $ 7,936,782 $ 4,579,364 Facilities $ 1,715,525 $ 1,478,669 Education and Training $ 163,500 $ 63,430 Contingencies $ 500,000 $ 250,000 Total O&M Expenses $ 13,479,853 $ 9,405,171 Capital Expense Capital Reserve Total Capital Expense $ 1,556,300 $ 1,935,000 $ 3,491,300 $ 1,330,308 _$ 5,085,974 $ 6,416,282 Total Expenditures $ 16,971,153 $ 15,821,453 The Budget Summary utilizes a cash basis for accounting. The accompanying Audit Report differs slightly because it utilizes an accrual basis. STATE OF TEXAS COUNTY OF BEXAR Before me, the undersigned personally appeared ark stated-I Dire0or 0 #�o Boor wtro 9-14 Ntbwk db 66166WY Swam 'toand sv,4 115 day this 2021 E, J, yn l , yn J, t N Po0c, in a d for the Staa of Texas My C m— mission Expires: September 6_2.023 KHI w �, � �h ,,r Bexar Metro 9 -1 -1 Network Independent Auditor's Report and Basic Financial Statements September 30, 2020 Bexar Metro 9 -1 -1 Network September 30, 2020 Contents Independent Auditor's Report ............................................................... ..............................1 IntroductorySection .............................................................................. ..............................3 Management's Discussion and Analysis .............................................. ..............................5 Basic Financial Statements Statementof Net Position .................................................................................. ............................... 12 Statement of Revenues, Expenses and Changes in Net Position ....................... ............................... 13 Statementof Cash Flows ................................................................................... ............................... 14 Notes to Basic Financial Statements ................................................................. ............................... 15 Required Supplementary Information Schedule of Changes in the Net Pension (Asset) Liability and Related Ratios . ............................... 26 Schedule of Employer Contributions ................................................................ ............................... 27 BKO CPAs & Advisors Board of Directors Bexar Metro 9 -1 -1 Network San Antonio, Texas 8200W. Interstate 10, Suite 900 1 San Antonio „; TX 782303 -3806 21 11.341.9400 € Fax 210.341.9434 1 bkd.com Independent Auditor's Report We have audited the accompanying financial statements of Bexar Metro 9 -1 -1 Network ( Bexar Metro or District) as of and for the year ended September 30, 2020, and the related notes to the financial statements, which collectively comprise the District'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 an opinion 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. 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 opinion. a Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Bexar Metro 9 -1 -1 Network as of September 30, 2020, and the changes in financial position and cash flows 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 pension information as listed in the table of contents be presented to supplement the financial statements. Such information, although not part of the financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the 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 financial statements and other knowledge we obtained during our audit of the 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 an opinion on the financial statements that collectively comprise Bexar Metro 9 -1 -1 Network's basic financial statements. The introductory section is presented for purposes of additional analysis and is not a required part of the basic financial statements. The introductory section has 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 it. ? c. c San Antonio, Texas April 13, 2021. Introductory Section The Texas Emergency Response System has two separate, yet equally important components: the 9 -1 -1 administrative entity that ensures the timely and accurate delivery of all emergency telecommunication requests, and the municipality, county, or other jurisdiction that dispatches and renders the specifically required emergency service. This separation of "Call Delivery" and "Service Delivery" responsibility serves the public well because it enables two technically different and challenging professions to complement each other while ensuring all citizens receive a high - quality, low -cost response to their emergencies. The Bexar Metro 9 -1 -1 Network is a 9 -1 -1 administrative entity. Bexar Metro 9 -1 -1 Network (Bexar Metro or District) is a Special Purpose District created by the Texas Legislature. The authority for Bexar Metro is the Texas Health and Safety Code, Chapter 772, Subchapter D, Section 772.301 — formerly Vernon's Annotated Civil Statutes Article 1432e, as approved by the Texas 691h Regular Legislative Session in Senate Bill 750 on May 21, 1985. This legislation's purpose is to establish affordable, high - quality countywide Enhanced 9 -1 -1 service by creating emergency communication districts. On September 22, 1986, the Alamo Area Council of Governments (AACOG) agreed to pursue establishment of an emergency communication district and, on October 31, 1986, a six - member board of directors, representing Bexar County and the twenty -five municipalities located within Bexar County, crafted the framework for the formation of a 9 -1 -1 district. On January 17, 1987, per provisions of Senate Bill 750, the citizens of Bexar County voted to approve establishing the Bexar Metro 9 -1 -1 Network and, on August 8, 1988, Coma] and Guadalupe counties petitioned for and received membership in the District. Bexar Metro currently provides Enhanced 9 -1 -1 call delivery services to approximately three million landline, Voice over Internet Protocol (VolP) and wireless telephone subscribers in the three counties, which include the major cities of San Antonio, New Braunfels, and Seguin. The District's mission is to deploy and maintain a state -of -the -art 9 -1 -1 emergency communication system that provides citizens in distress the ability to quickly communicate their request for police, fire or emergency medical assistance; and to ensure member jurisdictions have the appropriate 9 -1 -1 tools necessary to efficiently and accurately receive and process those requests. To successfully accomplish the mission, the District must: deploy and manage a technology - neutral network that routes all 9 -1 -1 requests to the appropriate municipal or county Emergency Communications Center (ECC); create and maintain a time - sensitive, highly accurate database that displays the location, callback number, and owner's name of the specific instrument used to access 9 -1 -1; procure, install, and maintain the specialized 9 -1 -1 equipment utilized by each authorized ECC; coordinate with municipal and county addressing authorities to ensure the database contains accurate, standardized, and logical location information to ensure each citizen is easily and quickly locatable during time - critical emergencies; and construct, deploy, and maintain a spatially accurate geographic digital map to support various location determination technologies and enhance multi - vendor computer -aided dispatch systems. The District's number one priority, its single largest resource expenditure, and its core mission responsibility is the provisioning, operational management, and technical oversight of the 9 -1 -1 network, database, and specialized call handling equipment. This effort requires continuous monitoring and control to ensure 9 -1 -1 service is routinely available and sufficiently redundant to survive service disruptions, whether minimal or catastrophic. Bexar Metro must also ensure that new technologies do not diminish the functionality of 9 -1 -1 service; therefore, as a member of the Texas 9 -1 -1 Alliance (Alliance), the District maintains a continuous interaction with national standards organizations as well as state and federal regulatory and legislative bodies. A prime example was the introduction of wireless telephone service. Originally viewed as having minimal impact on 9 -1 -1 service, the rapid growth of wireless telephone service quickly became a serious impediment to the successful and efficient delivery of all 9 -1 -1 calls. Enhanced landline 9 -1 -1 is a success because the system routes the 9 -1 -1 request to the proper jurisdiction, provides the callback information, reports the exact geographic location of the device used to initiate the request, and identifies the subscriber's name. Technical issues prevented these attributes from being originally available with wireless calls. Consequently, the District worked with state and national officials seeking a solution and the result is the Federal Communications Commission's multi -year transition plan that requires wireless providers to meet the same Enhanced 9 -1 -1 standards as landline providers. The District's transition to this plan began in late 1997 and achieved full operational capability— including the ability to accurately locate a wireless handset —in late 2002. Currently, there are approximately 2.2 million wireless telephone subscribers throughout the District's area of responsibility, each with comparable Enhanced 9 -1 -1 capabilities as landline telephones. Eighty -nine percent of the District's total 9 -1 -1 call volume in fiscal year 2020 was generated by wireless telephones. The introduction of VoIP and text messaging telephone service presented many of the same technical and business case issues as wireless and the District again worked at all levels to develop and deploy solutions that ensured VoIP and text messaging technology is transparent to the 9 -1 -1 system. Bexar Metro has phased in VoIP 9 -1 -1 technology and Text to 9 -1 -1 service across the District, providing comparable services to those citizens seeking emergency assistance through the 9 -1 -1 network utilizing VoIP and text technology. Numerous other new technologies are being evaluated and each will require similar levels of effort to ensure the delivery of Enhanced and Next Generation 9 -1 -1 services. Another example of collaboration among emergency communication districts through the Alliance was the creation of a website for Multi Line Tenant System (MLTS) providers throughout Texas to file for waivers in response to "Karl's Law" that was approved by the Texas Legislature during the 2015 legislative session, signed by the governor and became effective September 1, 2016. Kari's Law was in response to a tragic incident at a motel in East Texas in 2013 where Kari Hunt was attacked and murdered while her daughter tried to reach help by calling 9 -1 -1. The call never went through because the MLTS phone system at the motel required dialing "9" to get an outside line. Kari's law required MLTS providers to program their systems to access emergency services by dialing the three digits 9 -1 -1. Most hotels and motels, along with businesses and schools, have been able to make changes to their telephone systems to allow direct access to 9 -1 -1 with the three digits. Businesses unable to configure their MLTS platforms to meet the requirements due to a technical or financial hinderance may continue to operate under a State- approved waiver. One of the District's primary sources of revenue is the wireline 9 -1 -1 emergency service fee applied to specified telephone access lines located in Bexar, Comal, and Guadalupe Counties. The Texas Health and Safety Code, Chapter 772, Section 772.314, authorizes the board to impose a 9 -1 -1 emergency service fee not exceeding 6 percent of the monthly base rate charged by the principal service supplier. The fee applies to all residential lines and up to the first 100 business lines at any one location. The fee does not apply to state and federal lines. The service fee schedule imposed on each residential or business local access line, or equivalent, is $0.50 and $1.00, respectively. A second primary source of revenue is the wireless 9 -1 -1 service fee of $0.50 per month per wireless subscriber, collected by the wireless service providers and remitted to the state of Texas. The state distributes the revenue to each 9 -1 -1 administrative entity based on its jurisdiction's pro rata share of the total population of Texas. Each year the board projects the total service fee revenue in conjunction with development and approval of the annual budget. By law, the fee revenue has uniform application in each participating jurisdiction and must generate revenue sufficient to match current and programmed operational expenses directly related to the District's mission and responsibilities, as well as providing reserves for service enhancements, contingencies, and equipment replacement. Management's Discussion and Analysis The objective of the Management's Discussion and Analysis is to provide a comprehensive analysis of financial, operating and other activities for the fiscal year ended September 30, 2020, as compared to those for the fiscal year ended September 30, 2019. This discussion and analysis is in accordance with Governmental Accounting Standards Board (GASB) Statement No. 34, Basic Financial Statements and Management's Discussion and Analysis for State and Local Governments (as amended). All financial information displayed herein is in the accompanying periodically required financial statements and notes to those financial statements. Financial Statements All financial statements use the accrual basis of accounting. The statement of net position presents data in a classified format as of the end of 2020. Assets are current assets, net property and equipment, and net pension asset. Current assets include cash and cash equivalents, investments, and service fees receivable. Current liabilities consist of accounts payable and accrued expenses. Until fiscal year 2016, the District had never obtained external financing. The District's net position is comprised of net investment in capital assets, restricted and unrestricted net position. The District's deferred outflows of resources consist of pension- related contributions, investment losses, actuarial losses, and changes in assumptions. The District's deferred inflows of resources consist of pension - related actuarial gains. The statement of revenues, expenses, and changes in net position presents the District on an operating basis versus a nonoperating basis format. Nonoperating revenues consist of interest income received from the District's operating and investment accounts, federal grants and lease income. Thus, all other activity is operating. Revenues consist of 9 -1 -1 service fees collected by telecommunication and private switch service providers and remitted to the District. The statement of cash flows presents the changes in cash for 2020 as net cash provided by (used in) operating, capital or investing activities. The direct method of presentation is used as required by GASB No. 34. Financial Position Composition of Assets -2020 Composition of Assets -2019 Net Property and Equipment Fa -i Sery ice Fees Receivable 1% : Pension Asset 1% Cash & Cash quiv alents 29% Net Property and Equipment law Cash& Cash Equivalents 23% ice Fees Receivable 1% During 2020, the District's total assets and deferred outflows of resources increased to $85.1 million from $82.2 million in 2019. The significant changes in asset composition are in Cash & Cash Equivalents due to a decrease in expenses. Liabilities consisted of accounts payable for operating expenses, and accrued expenses for earned vacation accrued by the District's employee. $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 Liability Comparison 2020 2019 ®Accrued Expenses ®Accounts Payable ® Capital Lease Obligation Accounts payable in 2020 increased to approximately $192,000 from approximately $82,000 in 2019. This increase was due to timing of bill payment in 2020 versus 2019. Accrued expenses represent salaries and vacation pay earned but not yet paid and remained consistent with prior year. Coinciding with the total asset composition, the total net position of the District increased during 2020. The composition consisted of net investment in capital assets, restricted net position and unrestricted net position including funds designated by the Board for capital expenditures. Net Position Comparison it 111 111 $80,000,000 $60,000,000 $40,000,000 $20,000,000 2020 2019 Restricted pensions Unrestricted - Undesignated Net investment in capital assets 7 Within unrestricted net position, the District's Board designates net position for capital expenditures approved annually with the adoption of the fiscal budget. Results of Operations Revenues and Other Income — The District's overall revenue increased 1 percent over the prior year due to an increase in income from wireless fees, offsetting the continued decline in landline revenue. Landline Wireless Private switch Total Service Fees Comparison of Revenues 2020 % of Total 2019 $ 3,941,216 11,623,366 9,010 $ 15,573,592 25.3% $ 4,253,779 74.6% 11,116,886 0.1% 10,327 % of Total 27.7% 72.2% 0.1% 100.0% $ 15,380,992 100.0% The District collects 9 -1 -1 service fees on each Landline within Bexar, Comal and Guadalupe counties. Fees range from $0.50 to $1.00 per line, depending on the type of access. Landline and VoIP service providers pay fees directly to the District, less a 1 percent administrative fee. Revenue from these sources decreased by 7 percent in 2020 due to the continued decline in landline service revenue as consumers disconnect service and opt to use wireless services as their sole telecommunications source. Wireless service providers with operations in Texas collect a monthly $0.50 fee from their subscribers and then remit to the Texas Comptroller who then allocates to each 9 -1 -1 entity an amount based on a population formula using annual estimates provided by the Texas State Data Center. The wireless service providers retain 1 percent of the total collected to cover administrative costs. Wireless service fee revenue increased by 5 percent in 2020 over the prior year. All other fees collected are attributable to private switch emergency service fees, network fees, and special jurisdiction fees imposed upon special entities, such as colleges and universities. Income from these fees remained comparable to 2019. Other income consists of interest income earned on the District's cash, cash equivalents and investments. Data Center lease payments are also included in other income, as well as federal grant revenues. During 2020, the District earned approximately $458,000 in interest and lease income as compared to approximately $580,000 during 2019. This decrease was due to lower than anticipated rates of return on deposit accounts due to the change in market conditions. Also during 2020, approximately $202,000 in federal grant revenues were earned, compared to $ -0- in 2019. This increase was due to a grant award received to reimburse the District cost incurred for the net generation 9 -1 -1 network project. Operating Expenses — Operating expenses for 2020 and 2019 were: Personnel Services — This expense includes the salaries and benefits paid to the District's employees. In 2020, Bexar Metro did not hire any new staff members. Network Operations and Maintenance — The most significant operating expenses are network operations and maintenance of the 9 -1 -1 system. There was a significant increase in these expenses of approximately 25 percent in 2020 from 2019 due to the refund from the overpayment of AT &T charges during fiscal year 2019, not recurring in fiscal year 2020. Professional Services — The District requires the professional services of outside agencies and personnel in areas where it is not economical to hire in -house experts or where the specialized services provided are beyond the District's capability. Education and Training — The first person involved in emergency response is the Telecommunicator who answers the citizen's call for help. The District's goal is to ensure this person has all the necessary tools, obtained through a task - focused education and training program, necessary to provide a high - quality response. The District works closely with each jurisdiction to provide specialized training at an ECC, virtually or at the District's Quarry Run training facility. When required, the District supplements this training through the use of outside professional educators or training grants. The training program also includes funds for area firefighters to attend the Texas A &M Municipal Fire School and Emergency Medical Dispatch (EMD) certification training for telecommunicators. Facility and Administrative Maintenance — This expense includes maintenance of the District's administrative office and Quarry Run Regional Operations Center, furniture and office administrative equipment, software licensing and computer hardware and software maintenance agreements. 2020 % of Total 2019 % of Total Personnel services $ 2,716,105 19.5% $ 2,453,347 19.6% Network operations and maintenance 4,141,059 29.8% 3,305,883 26.4% Professional services 364,900 2.6% 366,1.01 2.9% Facility and administrative maintenance 63,246 0.5% 83,258 0.7% Supplies and materials 60,693 0.4% 271,314 2.2% Public education and training 37,588 0.3% 152,612 1.2% Furniture and equipment 1,955,565 14.1% 1,314,167 10.5% Retirement expense 430,638 3.1% 489,237 3.9% Depreciation and amortization expense 4,125,899 29.7% 4,091,110 32.6% Total Operating Expenses $ 13,895,693 100.0% $ 12,527,029 100.0% Personnel Services — This expense includes the salaries and benefits paid to the District's employees. In 2020, Bexar Metro did not hire any new staff members. Network Operations and Maintenance — The most significant operating expenses are network operations and maintenance of the 9 -1 -1 system. There was a significant increase in these expenses of approximately 25 percent in 2020 from 2019 due to the refund from the overpayment of AT &T charges during fiscal year 2019, not recurring in fiscal year 2020. Professional Services — The District requires the professional services of outside agencies and personnel in areas where it is not economical to hire in -house experts or where the specialized services provided are beyond the District's capability. Education and Training — The first person involved in emergency response is the Telecommunicator who answers the citizen's call for help. The District's goal is to ensure this person has all the necessary tools, obtained through a task - focused education and training program, necessary to provide a high - quality response. The District works closely with each jurisdiction to provide specialized training at an ECC, virtually or at the District's Quarry Run training facility. When required, the District supplements this training through the use of outside professional educators or training grants. The training program also includes funds for area firefighters to attend the Texas A &M Municipal Fire School and Emergency Medical Dispatch (EMD) certification training for telecommunicators. Facility and Administrative Maintenance — This expense includes maintenance of the District's administrative office and Quarry Run Regional Operations Center, furniture and office administrative equipment, software licensing and computer hardware and software maintenance agreements. Supplies and Materials — Office supplies include routine expendable office supplies and commercially available technical and business - oriented software. Also included are printing, copying, and shipping expenditures. Public Education — The District recognizes the importance of public education and the impact on the citizen's expectation of 9 -1 -1 service. Educational materials are made available free of charge to public safety entities and schools. District personnel are also available for presentations both in the schools and other public forums. Furniture and Equipment — This expense is routine replacement of District furniture and equipment. The increase over 2019 is associated with enhancements made to the Quarry Run security systems, to include expansion of video security measures, and the addition of a visitor management system. Retirement Expense — The District participates in the Texas County and District Retirement System (TCDRS). TCDRS is a non - profit organization established by the State of Texas that provides pension benefits to participating county and district employees. Funding for the plan consists of employee deposits and employer contributions. For 2020, the District employees contributed 7 percent of pre -tax income to TCDRS. Monthly, the District contributed 10 percent of total salaries to TCDRS. For 2020 and 2019, these contributions amounted to approximately $249,000 and $226,000, respectively. The District's funding rate adjusts annually based on the plan's funding status actuarial accrued liability or asset. The rate of funding remains at 10 percent through September 30, 2020. The District also participates in the United States Conference of Mayors Deferred Compensation Program. The total expense incurred by the District on behalf of its employees in this plan totaled approximately $104,000 and $95,000 in 2020 and 2019, respectively. A year -end, lump -sum contribution of $250,000 was made to the TCDRS Plan to protect against a potential decline in investment return and ensure the pension plan remains fully funded. The Plan was funded at 122.1 percent for the previous year. Budget Comparison — Annually, the District provides a proposed budget to the 40 participating jurisdictions within Bexar, Comal and Guadalupe counties. Once approved by the jurisdictions, the Board of Directors reviews and adopts the proposed budget for the upcoming fiscal year. The budget is prepared on a cash basis; thus, differences occur with the amounts presented in the financial statements. During the budgeting process, the District budgets for capital expenditures to add or replace facility and equipment, network elements, databases, customer premise equipment, and other activities that enhance the provision of 9 -1 -1 service. The District recognizes capital expenditures as an expense at the time of acquisition; however, for financial statement purposes, these expenses are capitalized and depreciated or amortized over their estimated useful lives. Additionally, depreciation and amortization expenses are not budgeted using the cash basis model. Revenues — Total service fee revenue increased by 1 percent in 2020 over the prior year. Expenses — For 2020 and 2019, total operating and maintenance expenses were 34 percent below budget and 16 percent below budget, respectively. The largest single budgeted expense in the 2019 and 2020 budget cycles was directly related to the planned implementation and deployment of a new 9 -1 -1 selective routing core architecture. Unfortunately, resolution of technical issues identified in late 2019, . followed by the COVID -19 outbreak in 2020, prevented positive movement on this project; thus, monies allocated for the project were not spent. Nonoperating Revenues — Interest income results from the cash management procedures implemented by the District. Lease income earned is related to the rental of the Quarry Run facility. W Significant Trends and Expectations New Technologies — Bexar Metro has historically adapted to changing communication technical challenges through comprehensive strategic planning and implementation. In addition to its continuing support of the existing Enhanced 9 -1 -1 system, Bexar Metro has been actively pursuing completion of a Next Generation 9 -1 -1 (NG9 -1 -1) system by interconnecting the district's regional Emergency Services Integrated Network (ESInet) with a Next Generation Core Solution (NGCS). This multiphase project includes rehoming twenty (20) ECCs and one - hundred and sixty -nine (169) operating service providers (OSPs) from the current 9 -1 -1 selective router to a nationwide, multi -node 9 -1 -1 selective routing architecture. The transition from the legacy 9 -1 -1 selective router to the feature rich NGCS began in January 2020, with an anticipated Phase I ECC transition target completion of third quarter 2021. Phase II transition of OSP interconnection will occur in various stages beginning in late 2021 and into 2022. The final NG9 -1 -1 configuration will consist of two fully geographically diverse and redundant host systems, with multiple, diverse interconnection points into the NGCS. This robust, high - availability architecture is supported by a fully redundant Internet Protocol (IP) diverse access network with a tertiary FirstNet over - the -air backup solution connecting the ECCs and host locations. Current operating and reserve sources provided the funding for this initiative, as well as the 9 -1 -1 system upgrade and building of the Quarry Run facility. The Federal Communications Commission (FCC) mandate for wireless service providers to deliver z -axis (vertical) location information with the 9 -1 -1 call beginning in April 2021 may require the procurement of additional geospatial applications in the interim to ensure the information presented is "actionable" to the 9 -1 -1 telecommunicator. A multiphase implementation plan will ensure the ECCs have the tools they need to receive and process vertical data. Ultimately, the district may be required to replace the current 9 -1 -1 mapping system outside the normal equipment refresh period to further enhance mapping of vertical data and streamline the processes required to leverage the information provided into an actionable value for first responders. The role of regulators, at both the state and federal level, is changing because of deregulation and a more competitive market. Therefore, it is necessary to be proactive, knowledgeable and articulate in representing 9 -1 -1 system requirements. The District, both on its own and through the Texas 9 -1 -1 Alliance, is actively involved with the regulatory process at the state and federal level. The goal is to ensure decision makers understand the necessity to embrace 9 -1 -1 service in a manner that provides continuation of a robust and affordable 9 -1 -1 system. In addition, it is important regulators understand the challenge for 9 -1 -1 administrative entities to compel both traditional and nontraditional carriers to interconnect their networks to provide a seamless 9 -1 -1 network to better serve the public. It is important that all communication service providers consider the provision of the best 9 -1 -1 service available as the cost of business. 11 Bexar Metro 9 -1 -1 Network Statement of Net Position September 30, 2020 Assets Current Assets Cash and cash equivalents Accounts receivable Federal grant receivable Total current assets Property and Equipment Furniture Office equipment Computer equipment Software Building Land and land improvements Vehicle Construction in progress Less accumulated depreciation and amortization Net property and equipment Other Assets Net pension asset Prepaid software and maintenance costs, net of accumulated amortization of $56,335 Total assets Deferred Outflows of Resources Contributions - pensions Investment loss - pensions Change in assumptions - pensions Actuarial gain - pensions Total deferred outflows of resources Total assets and deferred outflows of resources See Notes to Financial Statements $ 23,849,447 1,1.42,033 201,930 25,193,41.0 1,600,040 2,380,011 10,995,106 732,666 53,557,01.0 3,548,232 1 52,702 31,474 72,997,241 15,580,122 57,417,119 831,112 44,696 83,486,337 186,249 1,217,149 16,244 189,902 1,609,544 $ 85,095,881 Liabilities Current Liabilities Accounts payable Accrued expenses 192,250 41 6,906 Total current liabilities 609,156 Deferred Inflows of Resources Investment gain - pensions 1,465,740 Change in assumptions - pensions 67,960 Actuarial loss - pensions 65,201 Total deferred inflows of resources 1,598,901 Net Position Net investment in property and equipment 57,417,119 Restricted for pension assets 831,112 Unrestricted net position 24,639,593 Total net position 82,887,824 Total liabilities, deferred inflows of resources and net position $ 85,095,881 12 Bexar Metro 9 -1 -1 Network Statement of Revenues, Expenses and Changes in Net Position Year Ended September 30, 2020 Operating Revenues 9 -1 -1 service fees $ 15,573,592 Operating Expenses Personnel services 2,716,105 Network operations and maintenance 4,141,059 Professional services 364,900 Facility and administrative maintenance 63,246 Supplies and materials 60,693 Public education and training 37,588 Furniture and equipment 1,955,565 Retirement expense 430,638 Depreciation and amortization expense 4,125,899 Total operating expenses 13,895,693 Operating Income 1,677,899 Nonoperating Revenues Interest income 143,026 Federal grant revenue 201,930 Lease income and other 314,869 Total nonoperating revenues 659,825 Increase in Net Position 2,337,724 Total Net Position, Beginning of Year 80,550,100 Total Net Position, End of Year $ 82,887,824 See Notes to Financial Statements 13 Bexar Metro 9 -1 -1 Network Statement of Cash Flows Year Ended September 30, 2020 Operating Activities Receipts from service providers $ 15,473,226 Payments for goods and services (6,613,509) Payments to employees (3,311,233) Net cash provided by operating activities 5,548,484 Capital and Related Financing Activities Purchase of property and equipment (344,073) Principal payments under capital lease obligation (576,954) Net cash used in capital and related financing activities (921,027) Investing Activities Proceeds from maturing investments 143,026 Proceeds from rental property 314,869 Net cash provided by investing activities 457,895 Increase in Cash and Cash Equivalents 5,085,352 Cash and Cash Equivalents, Beginning of Year 18,764,095 Cash and Cash Equivalents, End of Year $ 23,849,447 Reconciliation of Operating Income to Net Cash Provided By Operating Activities Operating income $ 1,677,899 Adjustments to Reconcile Operating Income to Net Cash Provided By Operating Activities Depreciation expense 3,231,381 Amortization expense 894,518 Change in Assets, Deferred Outflows and Liabilities Receivables (100,366) Prepaid expenses (101,031) Pension asset (967,070) Accounts payable 110,573 Accrued expenses 19,210 Restricted cash - Deferred outflows / Deferred inflows 783,370 Net cash provided by operating activities $ 5,548,484 See Notes to Financial Statements 14 Bexar Metro 9 -1 -1 Network Notes to Basic Financial Statements September 30, 2020 Note 1: Nature of Activities and Summary of Significant Accounting Policies Nature of Activities The Bexar Metro 9 -1 -1 Network (District) is a special purpose emergency communication district authorized by the Texas Health and Safety Code, Chapter 772, Subchapter D. The purpose of the District is to establish the number 9 -1 -1 as the primary emergency telephone number in Bexar, Comal and Guadalupe counties, thereby, facilitating a response to any person seeking police, fire, medical and other emergency services. Basis of Accounting The accompanying financial statements and required supplementary information have been prepared using the economic resources measurement focus and the accrual basis of accounting as a business -type activity in conformity with the applicable pronouncements of the Governmental Accounting Standards Board (GASB). Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and deferred inflows and outflows of resources and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash Equivalents The District considers all liquid investments with original maturities of three months or less to be cash equivalents. The District considers uninvested cash held in investment accounts as cash or cash equivalents. At September 30, 2020, cash equivalents consisted primarily of money market accounts with brokers and highly liquid short-term investments. Accounts Receivable Accounts receivable are stated at the amount billed to customers plus any accrued and unpaid interest. This includes service fee receivables that are earned when the service is performed and paid subsequent to year -end. The District provides an allowance for doubtful accounts, which is based upon a review of outstanding receivables, historical collection information and existing economic conditions. Accounts receivable are ordinarily due 30 days after the issuance of the invoice. Accounts that are unpaid after the due date bear interest at 1 percent per month. Accounts past due more than 120 days are considered delinquent. Interest continues to accrue on delinquent accounts until the account is past due more than one year, at which time interest accrual ceases and does not resume until the account is no longer classified as delinquent. Delinquent receivables are written off based on individual credit evaluation and specific circumstances of the customer. 15 Bexar Metro 9 -1 -1 Network Notes to Basic Financial Statements September 30, 2020 Property and Equipment Acquisitions of property and equipment in excess of $5,000 are capitalized. Property and equipment are recorded at cost. Depreciation is computed using the straight -line method over the estimated useful life of each asset. The following estimated useful lives are used by the District: Furniture 7 years Office equipment 5 years Computer equipment 3 years Software 2 years Building 39 years Land improvements 15 years Vehicles 3 years Compensated Absences The District's policies permit most employees to accumulate vacation and sick leave benefits that may be realized as paid time off or, in limited circumstances, as a cash payment. Expense and the related liability are recognized as vacation benefits are earned whether the employee is expected to realize the benefit as time off or in cash. Expense and the related liability for sick leave benefits are recognized when earned to the extent the employee is expected to realize the benefit in cash determined using the termination payment method. Sick leave benefits expected to be realized as paid time off are recognized as expense when the time off occurs and no liability is accrued for such benefits employees have earned but not yet realized. Compensated absence liabilities are computed using the regular pay and termination pay rates in effect at statement of net position date plus an additional amount for compensation- related payments such as social security and Medicare taxes computed using rates in effect at that date. The estimated compensated absences liability expected to be paid more than one year after the statements of net position date is included in other long -term liabilities. Deferred Inflows and Outflows of Resources The District defers recognition of gains and losses incurred on net differences on projected and actual earnings associated with its pension investments held with its pension plan and reports such losses as deferred outflows of resources in the statement of net position. The District also defers recognition of actuarial gains and losses based on the assumptions used to compute the District's net pension liability /asset. These differences are recognized over a seven -year and five -year period, respectively. The District also defers recognition of contributions to its pension plan made between the measurement date of the pension liability /asset and the District's fiscal year -end. Deferred pension contributions are reported as deferred outflows in the statement of net position. U01 Bexar Metro 9 -1 -1 Network Notes to Basic Financial Statements September 30, 2020 Net Position Net position of the District is comprised of three components. Net investment in property and equipment consists of capital assets, net of accumulated depreciation, reduced by any outstanding balances of borrowings used to finance the construction /acquisition of those assets. Restricted - pensions represents resources restricted for pension items relating to the District's pension plan. Unrestricted represents the net amount of the assets, deferred outflows of resources, liabilities and deferred inflows of resources that are not included in the determination of net investments in property and equipment or the restricted component of net position, including board - designated amounts. The District first applies restricted net position when an expense or outlay is incurred for purposes for which both restricted and unrestricted net position are available. Operating and Nonoperating Revenues Operating revenues of the District include 9 -1 -1 service fees. Operating expenses include expenses incurred for activities relating to the provision of 9 -1 -1 services. Nonoperating revenues /expenses include nonexchange and exchange -like transactions, which include transactions for which cash flows are generally reported as capital and related financing activities, noncapital financing activities or investing activities on the statement of cash flows. Income Tax The District is exempt from federal income taxes under Section 115 of the Internal Revenue Code (IRC). Defined Benefit Pension Plan The District's defined benefit pension plan, Bexar Metro 9 -1 -1 Network Retirement Plan (Pension. Plan), provides retirement, disability and death benefits to plan members and beneficiaries. The Pension Plan participates in the Texas County and District Retirement System Retirement Plan (TCDRS Retirement Plan), an agent multiple employer defined benefit pension plan administered by the Texas County and District Retirement System (TCDRS) that serves 252 Texas counties and 425 diverse districts. TCDRS was established by the Texas Legislature pursuant to Section 67 of Article XVI of the Texas Constitution. The governing statute that permits the participation and that dictates the provisions and any amendment thereof is Subtitle F, Title 8, Government Code (TCDRS Act). The authority for the Pension Plan lies with the District's Board of Directors. TCDRS issues a publicly available actuarial valuation report of the TCDRS Retirement Plan that includes financial information and the required supplementary information. A separate report is publicly available for each participating county and district, including the Pension Plan and its financial information and required supplementary information. These reports may be obtained from the TCDRS website. 17 Bexar Metro 9 -1 -1 Network Notes to Basic Financial Statements September 30, 2020 Pension Plan members are required to contribute 7 percent of their annual covered salary. The District is required to contribute at an actuarially determined rate consisting of a normal cost rate and unfunded actuarially accrued liability rate. For purposes of measuring the net pension liability /asset, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Plan and additions to /deductions from the Plan's fiduciary net position have been detennined on the same basis as they are reported by the Plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Revenue Recognition Service fee revenues are recognized when earned for both landline and wireless fees. Risk Management The District is exposed to various risks of loss from torts; theft of, damage to and destruction of assets; errors and omissions; employee injuries and illnesses; natural disasters; and employee health, dental and accident benefits. Commercial insurance coverage is purchased for claims arising from such matters. Claims have not exceeded insured limits in any of the previous three years. Note 2: Economic Dependency and Concentration of Credit Risk Service fees are levied by the District on telephone customers within the participating jurisdictions. These fees are collected from customers and remitted to the District by the telephone companies providing services to the area. All service fees receivable is derived from these sources and management believes all are fully collectible. There are currently four incumbent local exchange carriers serving the District as well as numerous competitive local exchange carriers and private switch providers. For the year ended September 30, 2020, the landline service fees were standardized across all three counties at $0.50 for residential, $1.00 for business lines and $1.00 for business trunks. The telephone companies were permitted to retain 1 percent of the fees as an administrative fee. For the year ended September 30, 2020, all wireless telephone service providers were required to collect a monthly service fee in the amount of $0.50, per subscriber, which is remitted to the comptroller and then distributed by the Commission on State Emergency Communications (CSEC). CSEC distributes these fees to 9 -1 -1 jurisdictions using a calculation based upon the jurisdiction's population as a percentage of the entire population of the state of Texas. The wireless telephone companies were permitted to retain 1 percent of these fees as an administrative fee. For the year ended September 30, 2020, approximately 75 percent of revenues were derived from wireless service fees. U Bexar Metro 9 -1 -1 Network Notes to Basic Financial Statements September 30, 2020 Maintenance on the networks and databases requires significant expense. For the year ended September 30, 2020, approximately 30 percent of the total expenses incurred were for operating and maintaining the networks and databases necessary for continued operation of the District. Note 3: Property and Equipment For the year ended September 30, 2020, the amount of property and equipment purchased and the amount of assets disposed of was as follows: For the year ended September 30, 2020, the accumulated depreciation and the amount of expense recorded were as follows: Asset Class Balance Additions Disposals Balance Asset Class at 2019 Additions Disposals at 2020 Furniture $ 724,492 $ 222,768 $ - $ 947,260 Assets being depreciated 1,434,368 277,524 - 1,711,892 Furniture $ 1,600,040 $ - $ - $ 1,600,040 Office equipment 2,365,011 15,000 - 2,380,011 Computer equipment 10,809,642 185,464 - 10,995,106 Software 628,007 104,659 - 732,666 Building 53,518,060 38,950 - 53,557,010 Land and land improvements 3,548,232 - - 3,548,232 Vehicle 152,702 - - 152,702 Construction in progress 31,474 - - 31,474 Total $ 72,653,168 $ 344,073 $ - $ 72,997,241 For the year ended September 30, 2020, the accumulated depreciation and the amount of expense recorded were as follows: Asset Class Balance at 2019 Additions Disposals Balance at 2020 Assets being depreciated Furniture $ 724,492 $ 222,768 $ - $ 947,260 Office equipment 1,434,368 277,524 - 1,711,892 Computer equipment 4,892,025 2,127,896 - 7,019,921 Software 521,981 35,1.61 - 557,142 Building 3,633,919 1,379,804 - 5,013,723 Land and land improvements 1.71,057 6,425 - 177,482 Vehicle 132,716 19,986 - 152,702 Total $ 11.510.558 S 4.069.564 $ - S 15.580.122 FA Bexar Metro 9 -1 -1 Network Notes to Basic Financial Statements September 30, 2020 Note 4: Retirement Savings Plan Eligible District employees may participate in the United States Conference of Mayors Deferred Compensation Program (Plan). The Plan is qualified under Section 457 of the IRC. The Plan provides municipal employees with an officially sponsored and monitored supplemental retirement and savings plan. Under the Plan, employees may contribute and defer a portion of their salary before federal income taxes. Voluntary contributions may be made at the discretion of the District. For the year ended September 30, 2020, the District made contributions to the Plan of $104,445. Note 5: Pension Plan Plan Description The District's agent multi- employer defined benefit pension plan is separately administered by the Texas County District Retirement System (TCDRS). TCDRS is governed by a nine - member board comprised of system members and retirees appointed by the Governor of the State of Texas and confirmed by the Texas Senate. TCDRS acts as a common, independent investment and administrative agent for the District. In a defined benefit plan, pension benefits are actuarially determined by a member's age at retirement, number of years of service credit and final compensation as calculated under the TCDRS Retirement Plan document. The TCDRS Retirement Plan does not issue a separate report that includes financial statements and required supplementary information for the TCDRS Retirement Plan. TCDRS in the aggregate issues a comprehensive annual financial report (CAFR) on a calendar year basis. The CAFR is available upon written request from the TCDRS Board of Trustees, P.O. Box 2034, Austin, Texas 78768 -2034 or from the website www.tcdrs.org. Benefits Provided During employment, employees contribute 7 percent compensation to the TCDRS Retirement Plan. At the time a pension benefit is payable, a member's accumulated personal contribution and accrued interest are matched by the District at a 200 percent level. This matching is only activated at death, disability or retirement. Benefits are payable based on the member's election of eight payout options. Payments, once elected, are guaranteed for life. Members are fully vested in their contribution to the TCDRS Retirement Plan. Contributions The District's contribution is actuarially determined to provide a specific level of benefit. The employees contribution rate is set at 7 percent, with the District's rate determined through actuarial valuation. The District's elected contribution rate was 10 percent for 2020 as a percentage of covered payroll, which exceeded the rate determined actuarially. Employee contributions for the fiscal year ended September 30, 2020, were $1.74,281. Employer contributions for the fiscal year ended September 30, 2020, were $499,332. N Bexar Metro 9 -1 -1 Network Notes to Basic Financial Statements September 30, 2020 Membership Membership in the Plan by membership class at the measurement date of December 31, 2019, is as follows: Inactive employees or beneficiaries currently receiving benefits 6 Active employees 22 28 Net Pension Liability The District's net pension liability was measured at December 31, 2019, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. Assumptions As of the latest measurement date of December 31, 2019, the significant actuarially assumptions used in the valuation included: Investment rate of return (net of administrative expenses) Discount rate Projected salary increases Inflation adjustment Mortality 8.0% 8.1% 4.9% 2.75% RP -2014 Active Employee Mortality Table The actuarial assumptions used in the December 31, 2019; valuation was based on the results of an actuarial experience study for the period January 1, 2013 through December 31, 2016. The pension Plan's unfunded actuarial accrued liability or asset is being amortized as a level percentage of covered payroll on an open basis. The amortization period as of January 1, 2020, is 30 years. 21 Bexar Metro 9 -1 -1 Network Notes to Basic Financial Statements September 30, 2020 Changes in the total pension liability, Plan fiduciary net position and the net pension (asset) liability were as follows: 22 Increase /(Decrease) Changes in Net Total Pension Fiduciary Net Net Pension Pension Liability Liability (a) Position (b) (Asset) Liability (a)-(b) Balances as of beginning of year $ 9,854,553 $ 9,718,595 $ 135,958 Changes for the year Service cost 367,288 - 367,288 Interest on total pension liability 820,076 - 820,076 Effect of Plan changes (17,448) - (17,448) Effect of economic/ demographic gains or losses 109,482 - 109,482 Benefit payments (198,770) (198,770) - Administrative expenses - (8,965) 8,965 Member contributions - 161,843 (161,843) Net investment income - 1,595,536 (1,595,536) Employer contributions - 481,205 (481,205) Other - 16,849 (1.6,849) Balances as of end of year $ 10,935,181 $ 11,766,293 $ (831,112) 22 Bexar Metro 9 -1 -1 Network Notes to Basic Financial Statements September 30, 2020 Rate of Return on Pension Plan Investments The long -term expected rate of return on TCDRS assets is determined by adding expected inflation to expected long -term real returns and reflecting expected volatility and correlation. The capital market assumptions and information shown below are provided by TCDRS' investment consultant. The numbers shown are based on April 2020 information for a 10 -year time horizon. The target allocations and best estimates of rates of return for each major asset class are summarized below: Geometric Real Target Rate of Return Asset Class Allocation Minus Inflation U.S. Equities 14.50% 5.20% Private Equity 20.00% 8.20% Global Equities 2.50% 5.50% International Equities - Developed 7.00% 5.20% International Equities - Emerging 7.00% 5.70% Investment Grade Bonds 3.00% -0.20% Strategic Credit 12.00% 3.14% Direct Lending 11.00% 7.16% Distressed Debt 4.00% 6.90% REIT Equities 3.00% 4.50% Master Limited Partnerships 2.00% 8.40% Private Real Estate Partnerships 6.00% 5.50% Hedge Funds 8.00% 2.30% Discount Rate The discount rate used to measure the total pension asset was 8.1 percent. Based on Plan funding expectations, the projected fiduciary net position is projected to be sufficient to pay projected benefit payments in all future years. Based on this assumption, the discount rate for purposes of calculating the total pension asset/liability and net pension asset/liability is equal to the long -term assumed rate of return on investments. Sensitivity to Interest Rate Change The following presents the resulting net pension (asset) liability calculated using the discount rate of 8.1 percent, as well as what the District's net pension asset would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate: 1% Current 1% Decrease Discount Rate Increase 7.10% 8.10% 9.10% District's net pension (asset) liability $ 608,653 $ (831,112) $ (2,041,320) WA Bexar Metro 9 -1 -1 Network Notes to Basic Financial Statements September 30, 2020 Pension Expense For the year ended September 30, 2020, the District reported pension expense as follows: Service cost $ 367,288 Interest on total pension liability 820,076 Effect of Plan changes (17,448) Administrative expenses 8,965 Member contributions (161,843) Expected investment return net of investment expenses (805,162) Recognition of economic /demographic gains or losses 11,899 Recognition of assumption changes or inputs (8,869) Recognition of investment gains or losses 117,577 Other (16,849) Pension income $ 315,634 Deferred Outflows and Inflows of Resources As of September 30, 2020, deferred outflows of resources are as follows: Differences between expected and actual experience Changes in assumptions Investment loss - pensions Contributions made subsequent to the measurement date As of September 30, 2020, deferred inflows of resources are as follows: Differences between expected and actual experience Changes in assumptions Investment gains - pensions $ 189,902 16,244 1,217,149 186,249 $ 1,609,544 $ 65,201 67,960 1,465,740 $ 1,598,901 24 Bexar Metro 9 -1 -1 Network Notes to Basic Financial Statements September 30, 2020 Amounts currently reported as deferred outflows of resources related to the pension Plan, excluding contributions made subsequent to the measurement date, will be recognized in pension expense as follows: Year ended September 30, 2020 2021 2022 2023 2024 Thereafter $ (52,202) (71,737) 44,542 (156,266) 23,184 36,870 $ (175,609) At September 30, 2020, the District reported $186,249 as deferred outflows relating to pension contributions subsequent to the measurement date and prior to year -end. This amount will be recognized as a reduction to the net pension liability at September 30, 2020. Note 6: Operating Leases The District leases office and storage space under the Quarry Run Regional Operations Center. These leases expire in various years through 2025. These leases contain five one -year renewal options, each commencing on the anniversaries of the effective dates of the leases. Rental receipts include minimum rentals based on the number of storage cabinets utilized. Future minimum lease receipts at September 30, 2020, were: 2021 $ 338,400 2022 338,400 2023 243,200 2024 130,400 2025 19,200 $ 1,069,600 Note 7: Contingencies As a result of the spread of the SARS -CoV -2 virus and the incidence of COVID-19, economic uncertainties have arisen which may negatively affect the financial position, results of operations and cash flows of the District. The duration of these uncertainties and the ultimate financial effects cannot be reasonably estimated at this time. P47 Bexar Metro 9 -1 -1 Network Schedule of Changes in the Net Pension (Asset) Liability and Related Ratios Total Pension Liability Service cost Interest (includes interest on service cost) Effect of Plan changes Effect of economic /demographic (gains) or losses Effect of assumptions changes or inputs Benefit payments, including refunds of member contributions Net change in total pension liability Total pension liability - beginning Total pension liability - ending Plan Fiduciary Net Position Contributions - employer Contributions - employee Net investment income Benefit payments, including refunds of member contributions Administrative expense Other Net change in Plan fiduciary net position Plan fiduciary net position - beginning of year Plan fiduciary net position - end of year 2019 2018 2017 2016 2015 2014 $ 367,288 $ 318,976 $ 262,145 $ 199,303 $ 175,284 $ 172,766 820,076 740,685 586,665 500,717 447,716 399,293 (17,448) (17,427) 1,311,329 511,203 (13,339) - - 75,991 (30,691) 70,634 (166,819) 47,876 109,482 - (118,930) - 56,849 - (198,770) (174,516) (157,551) (11.2,478) (61,381) (28,61.1) 1,080,628 943,709 1,852,967 1,169,379 438,310 591,324 9,854,553 8,910,844 7,057,877 5,888,498 5,450,187 4,858,863 $ 10,935,181 $ 9,854,553 $ 8,910,844 $ 7,057,877 $ 5,888,497 $ 5,450,187 $ 481,205 $ 464,826 $ 431,281 $ 418,452 $ 393,575 $ 395,313 161,843 150,378 126,897 117,917 100,503 101,719 1,595,536 (170,992) 1,157,454 514,616 (292,879) 384,709 (198,770) (174,516) (157,551) (112,478) (61,381) (28,611) (8,966) (7,806) (6,280) (5,591) (4,955) (4,921) 16,849 14,078 5,310 40,842 (7,252) (5,442) 2,047,697 275,968 1,557,111 973,758 127,611 842,767 9,718,596 9,442,628 7,885,517 6,911,759 6,784,149 5,941,382 $ 11,766,293 $ 9,718,596 $ 9,442,628 $ 7,885,517 $ 6,911,760 $ 6,784,149 $ (831,112) $ 135,957 $ (531,784) $ (827,640) $ (1,023,263) $ (1,333,962) Plan fiduciary net position as a percentage of the total pension liability 108% 99% 106% 112% 117% 124% Covered employee payroll $ 2,312,046 $ 2,148,259 $ 1,812,811 $ 1,684,522 $ 1,435,750 $ 1,453,127 District's net pension liability as a percentage of covered employee payroll - 35.95% 6.33% - 29.33% - 49.13% - 71.27% 91.80% Note to schedule: This schedule is intended to display the most recent 10 years of data for annual changes in the net pension asset. Until such time has elapsed after implementing GASB Statement No. 68, this schedule will only present information from those years that are available. 26 Bexar Metro 9 -1 -1 Network Schedule of Employer Contributions Retirement Age — Members who are eligible for service retirement are assumed to commence receiving benefit payments based on age. The average age at service retirement for recent retirees is 61. Mortality — In the 2019 actuarial valuation, 130% of RP -2014 Healthy Annuitant Mortality Table for males and 110% of the RP -2014 Healthy Annuitant Mortality Table for females, both projected with 110% of the MP -2014 Ultimate scale after 2014. Changes in Plan Provisions Reflected in the Schedule — Effective with the 2018 calendar year, employer contributions reflect that a 2 percent flat COLA was adopted. 27 Actual Actuarially Contribution Pensionable Contribution as a Determined Actual Employer Deficiency Covered Payroll % of Covered Year Ended September 30 Contribution Contribution (Excess) (1) Payroll 2020 $ - $ 499,332 $ (499,332) $ 2,312,046 21.6% 2019 $ - $ 475,848 $ (475,848) $ 2,148,259 22.2% 2018 $ - $ 455,791 $ (455,791) $ 2,306,273 19.8% 2017 $ - $ 426,697 $ (426,697) $ 1,931,977 22.1% 2016 $ 13,622 $ 157,935 $ (144,313) $ 1,661,228 9.5% 2015 $ 76,380 $ 392,390 $ 66,010 $ 1,506,490 9.5% Notes to Schedule: (1) Payroll is calculated based on contributions as reported to TCDRS This schedule is presented to illustrate the requirement to show information for 10 years. However, until a full 10 -year trend is compiled, the District will present information for those years for which information is available. Information presented in this schedule has been determined as of the District's fiscal year- end (September 30) in accordance with GASB 68. Valuation Date: Actuarially determined contribution rates are calculated as of December 31, two years prior to the end of the fiscal year in which the contributions are reported. Methods and Assumptions Used to Determine Contribution Rates: Actuarial cost method Entry Age Normal Amortization method Level percentage of covered payroll, closed period Remaining amortization period 0.0 years Asset valuation method 5 -year smoothed market Inflation 2.75% Salary increases Varies by age and service. 4.9% average over career including inflation Investment rate of return 8.00 %, net of investment expenses, including inflation Retirement Age — Members who are eligible for service retirement are assumed to commence receiving benefit payments based on age. The average age at service retirement for recent retirees is 61. Mortality — In the 2019 actuarial valuation, 130% of RP -2014 Healthy Annuitant Mortality Table for males and 110% of the RP -2014 Healthy Annuitant Mortality Table for females, both projected with 110% of the MP -2014 Ultimate scale after 2014. Changes in Plan Provisions Reflected in the Schedule — Effective with the 2018 calendar year, employer contributions reflect that a 2 percent flat COLA was adopted. 27 BEXAR METRO 9-1 -1 Network TO: Bo Metro 9-1-1 Network Participating Jurisdictions FROM: Brett M. Schneider, Executive Director SUBJECT: Proposed Fiscal Year 2022 Financial Plan and Budget DATE: May 25, 2021 Enclosed for your review and comment is the Bexar Metro 9-1-1 Network's Proposed Fiscal Year 2022 Financial Plan and Budget. The Bexar Metro Board approved this proposed budget at their regularly scheduled and properly noticed meeting held on May 18,2021. Please address your written comments to the Chairman of the Board at the address on the bottom • this memorandum. The Bexar Metro Board will review your comments, make changes as necessary, and adopt the Fiscal Year 2022 Budget during the August Board Meeting. Please forward your comments to ensure arrival at the Bexar Metro office not later than 4:00 p.m. on July 31, 2021. Copies of our Fiscal Year 2020 Independent Auditor's Report and 2020 Annual Report are also enclosed for your information. BEXAR WAM fIN dg ITi I g g K7jgL;LC!7qt7 Z! U&MM .0 4 #0 -00 wo MANAGEMENT 101*1INTAMAIM WOMOVIMMItIfling Eddie L. Taylor, Deputy Executive Director 21 Page 124-ligeli Alamo Heights Converse Hollywood Park Olmos Park Somerset Ralcones Heights Elmendorf Kingsbury San Antonio Spring Branch Bexar County Fair Oaks Ranch Kirby Sandy Oaks St Hedwig Bulverde Garden Ridge Leon Valley Santa Clara Staples Castle Hills Grey Forest Live Oak Schertz Terrell Hills China Grove Guadalupe County Marion Seguin Universal City Cibolo Helotes New Braunfels Selma Von Ormy Comal County Hill County Village New Berlin Shavano Park Windcrest EmorgeneV Communications Centers -ALAMO HEIGHTS PO KIRBY PO BALCONES HEIGHTS PD -LIVE OAK PD BEXAR COUNTY SHERIFF NEW BRAUNFELS PD -CASTLE HILLS PO SAN ANTONIO PD FIRE/ENS COMAL COUNTY SHERIFF - SCHERTZ PO GUADALUPE COUNTY SHERIFF ­SEGUIN PO HELOTES PO -UNIVERSAL CITY PD JOSA FT. SAN HOUSTON - UTSA PD --JOSA LACKLAND -WINDCREST PO wJBSA RANDOLPH QUARRY RUN REGIONAL 3 P g I VAM4 UP] w*111--letil [gall 1010---raq Rol mr.1 Residential Lines: $ 0.50 Business Lines: $ 1.00 [:IRK-1w1; a, ANTICIPATED REVENUE 69,922, Wireless service fee revenue accounts for approximately 72.13% of total income. Wireline service fee revenue, comprised of traditional incumbent wireline and Voice over Internet Protocol (VOIP) services, accounts for 23.32% of total revenue. Additional revenue, totaling 4.55%, is generated on income from lease agreements, interest, and miscellaneous sources, such as special jurisdiction fees and grani. disbursements. Total revenues for fiscal year 2022 are projected to increase by $598,739 to $16,682,060. This reflects a 3.59% increase over the previous fiscal year. 4 1 P a g e r. • r . � ' Pry �� � ti.�k NOT • 1 :*A 2 4 z I-Iii FISCAL YEAR 2022 0 & M EXPENDITURES mcms ,� OPERATIONS $7,968,560, 56.07% Ot I M.ip: M!, IT�JPFJW m opop— TRAINING M $185,000,1303 CONTINGENCY $700,000,4.93% + r- lre--m , is projec-tea 6 1 Page ADMINISTRATIVE'' SERVICES 2 $3,065,500, 21.57% OPERATIONS $7,968,560, 56.07% Ot I M.ip: M!, IT�JPFJW m opop— TRAINING M $185,000,1303 CONTINGENCY $700,000,4.93% + r- lre--m , is projec-tea 6 1 Page OEM rM Mrs rs M_ A INNER MS. F M-otali-m', � W_* I I I I i 101 i 01 01 * 1 -0 1 ftij- I,' lielill-1,11,11. to- T W0101 I d At I e T RO;t d L; I I W d L eNt 41*1t 1 e I 11`1 rg eon UW! 13 Ali a Fir pur r Rep I RM! 1 We n 10 T c r 111 c a quipm nt. This year's budget allocates $820,000 to fund capital improvement projects supporting the enhancement or replacement of mission critical / 9-1-1 system equipment, network infrastructure, and maintenance of district facilities. Improvements for fiscal year 2022 include: JUTM-75THIOMMIMMUM o New Braunfels Police Degartment: Buildout of 9-1 -1 network, demarcation, and dedicat 9-1-1 system power infrastructure at the new City of New Braunfels Police Headquarte Procurement of an additional Vesta 9-1 -1 console is included in the project scope. WOR 0,011 M-111101IMS all M-1111411#11: MMMNN I 1101. 1 .0. 0.4, OF I I I i 1, 01011"W"JETAIWAF 1;1J (if] SIMIN E IN M o Quar[y Run Operations: Design and implementation of an Azure cloud-based netwon architecture at Quarry Run to better accommodate ECC remote access to Computer Aid Dispatch (CAD) and other agency resources during ECC contingent events. I 3wmlim- - TaIMM-11"T ]�_ 9 9r4r_.1K$1Ii� �M SM 9 1 Page The Fiscal Year 2022 Financial Plan and Budget, totaling $16,682,060 is sufficient to fund all projected program expenditures for the fiscal year. The plan includes $14,212,060 for Operations & Maintenance and $2,470,000 for Capital Improvements. The figures presented reflect a net increase of $596,740, or 3.58%, when compared to the Fiscal Year 2021 Adopted Budget. 10 1 F'-1 a g e Bexar Metro 9Network Proposed Fiscal Year 2022 Budget # � #" • # M i# t M ►; r ♦ =*-, Approved by the B x r e r Board o Managers this Eighteenth ay o y 2021. Y' Name: a C. aloer Title: Chairman 11 1 P