CAFR FY 2009-2010CITY OF SCHERTZ, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED SEPTEMBER 30, 2010
OFFICIALS ISSUING REPORT
Don E. Taylor
City Manager
Juan F. Santoya
Director of Finance
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CITY OF SCHERTZ, TEXAS
TABLE OF CONTENTS
SEPTEMBER 30, 2010
PAGE
INTRODUCTORYSECTION ........................................................................... ...............................
v
LETTER OF TRANSMITTAL .................................................................................... ...............................
vi
CITYOFFICIALS ....................................................................................................... ...............................
ix
ORGANIZATIONAL CHART ..................................................................................... ...............................
x
2009 CERTIFICATE OF ACHIEVEMENT ................................................................. ...............................
xi
FINANCIAL SECTION
INDEPENDENT AUDITOR'S REPORT ..................................................................... ...............................
2
MANAGEMENTS DISCUSSION AND ANALYSIS ................................................... ...............................
4
BASIC FINANCIAL STATEMENTS ......................................................................... .............................13
STATEMENT OF NET ASSETS .................................................................................. .............................14
STATEMENT OF ACTIVITIES ................................................................................... .............................16
BALANCE SHEET - GOVERNMENTAL FUNDS ...................................................... .............................18
RECONCILIATION OF BALANCE SHEET ................................................................ .............................20
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -
GOVERNMENTALFUNDS ...................................................................................... .............................21
RECONCILIATION OF THE STATEMENT OF REVENUES, GOVERNMENTAL FUNDS TO THE
STATEMENT OF ACTIVITIES ................................................................................. .............................23
STATEMENT OF NET ASSETS - PROPRIETARY FUNDS ....................................... .............................24
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS -
PROPRIETARY FUNDS ........................................................................................... .............................26
STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS ...................................... .............................27
NOTES TO BASIC FINANCIAL STATEMENTS ........................................................ .............................29
REQUIRED SUPPLEMENTARY INFORMATION ................................................. .............................51
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -
BUDGETAND ACTUAL .......................................................................................... .............................52
NOTES TO SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
-
BUDGETAND ACTUAL .......................................................................................... .............................54
TEXAS MUNICIPAL RETIREMENT SYSTEM ANALYSIS OF FUNDING PROGRESS -
LAST SIX CALENDAR YEARS ............................................................................... .............................55
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CITY OF SCHERTZ, TEXAS
TABLE OF CONTENTS
SEPTEMBER 30, 2010
FINANCIAL SECTION (CONTINUED)
OTHER SUPPLEMENTARY INFORMATION
COMPARATIVE BALANCE SHEETS - GENERAL FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND
BALANCE - GENERAL FUND ....................................................................... ...............................
56
57
58
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET
TO ACTUAL - DEBT SERVICE FUND .................................................................... .............................59
COMBINING AND INDIVIDUAL FUND - STATEMENTS AND SCHEDULES ....... .............................60
NONMAJOR GOVERNMENTAL FUNDS
61
COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS ......... .............................62
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND
BALANCES - NONMAJOR GOVERNMENTAL FUNDS ........................................ .............................64
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET
TO ACTUAL - HOTEL OCCUPANCY FUND .......................................................... .............................66
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET
TO ACTUAL - PARK FUND ..................................................................................... .............................67
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET
TO ACTUAL - RECYCLING FUND ......................................................................... .............................68
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET
TO ACTUAL - POLICE FORFEITURES FUND ....................................................... .............................69
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET
TO ACTUAL - LIBRARY GRANT FUND ................................................................ .............................70
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET
TO ACTUAL - PARKS AND WILDLIFE FUND ...................................................... .............................71
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET
TO ACTUAL - HISTORICAL COMMITTEE FUND ................................................. .............................72
DISCRETELY PRESENTED COMPONENT UNITS
73
COMBINING BALANCE SHEET - DISCRETELY PRESENTED COMPONENT UNITS .......................74
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND
BALANCE - DISCRETELY PRESENTED COMPONENT UNITS ........................... .............................75
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CITY OF SCHERTZ, TEXAS
TABLE OF CONTENTS
SEPTEMBER 30, 2010
FINANCIAL SECTION (CONTINUED)
STATISTICAL SECTION
NET ASSETS, BY COMPONENT - LAST EIGHT FISCAL YEARS - (ACCRUAL BASIS OF
ACCOUNTING) ........................................................................................................ .............................78
CHANGE IN NET ASSETS - LAST EIGHT FISCAL YEARS - (ACCRUAL BASIS OF
ACCOUNTING) ....................................................................................................... .............................80
FUND BALANCES - GOVERNMENTAL FUNDS -LAST TEN FISCAL YEARS - (MODIFIED ACCRUAL
BASISOF ACCOUNTING) ....................................................................................... .............................84
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS - LAST TEN FISCAL YEARS -
(MODIFIED ACCRUAL BASIS OF ACCOUNTING) ............................................... .............................86
TAX REVENUE BY SOURCE - GOVERNMENTAL FUNDS
88
TOTAL WATER AND SEWER CONSUMPTION AND RATES - LAST TEN FISCAL YEARS ....89
PRINCIPAL WATER AND SEWER CONSUMERS ............................................... .............................90
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY - LAST TEN
FISCALYEARS ........................................................................................................ .............................91
DIRECT AND OVERLAPPING PROPERTY TAX RATES - LAST TEN FISCAL YEARS .....................92
PRINCIPAL PROPERTY TAX PAYERS - CURRENT YEAR AND NINE YEARS AGO ........................93
PROPERTY TAX LEVIES AND COLLECTIONS - LAST TEN FISCAL YEARS ...... .............................94
TAXABLE ASSESSED VALUE - LAST SEVEN FISCAL YEARS
95
RATIOS OF OUTSTANDING DEBT BY TYPE - LAST TEN FISCAL YEARS .......... .............................96
RATIOS OF GENERAL BONDED DEBT OUTSTANDING - LAST TEN FISCAL YEARS ........... 98
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT ........... .............................99
DEBT MARGIN INFORMATION - LAST TEN FISCAL YEARS
PLEDGED REVENUE COVERAGE - LAST TEN FISCAL YEARS
100
102
DEMOGRAPHIC AND ECONOMIC STATISTICS - LAST TEN FISCAL YEARS ... ............................103
TOP TEN PRINCIPAL EMPLOYERS - CURRENT YEAR AND NINE YEARS AGO ...........................104
III
CITY OF SCHERTZ, TEXAS
TABLE OF CONTENTS
SEPTEMBER 30, 2010
FINANCIAL SECTION (CONTINUED)
STATISTICAL SECTION
FULL -TIME EQUIVALENT CITY GOVERNMENTAL EMPLOYEES BY FUNCTION - LAST
NINEFISCAL YEARS .............................................................. ............................... ............................105
OPERATING INDICATORS BY FUNCTION /PROGRAM - LAST TEN FISCAL YEARS ....................106
CAPITAL ASSET STATISTICS BY FUNCTION /PROGRAM - LAST TEN FISCAL YEARS ...............108
COMPLIANCE SECTION
110
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE
AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH GO VERNMENT A UDITING STANDARDS ..................... ............................111
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February 25, 2011
1400 SC HERTZ PARKWAY
SCHERTZ, TEXAS 78154-1634
PHONE (210) 619-1000
FAX (210) 619 -1050 DON E. TAYLOR
CITY MANAGER
To the Honorable Mayor, City Council, and the Citizens of City of Schertz:
State law requires that local governments publish a complete set of financial statements presented in conformity
with generally accepted accounting principles in the United States of America (U.S. GAAP) and audited in
accordance with generally accepted auditing standards in the United States of America by a firm of licensed
certified public accountants. Pursuant to that requirement, we hereby issue the comprehensive annual financial
report of the City of Schertz for the fiscal year ended September 30, 2010.
This report consists of management's representations concerning the finances of the City of Schertz.
Consequently, management assumes full responsibility for the completeness and reliability of all the information
presented in this report. To provide a reasonable basis for making these representations, management of the City
of Schertz has established a comprehensive internal control framework that is designed both to protect the
government's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation
of the City of Schertz's financial statements in conformity with U.S. GAAP. Because the cost of internal controls
should not outweigh their benefits, the City of Schertz comprehensive framework of internal controls has been
designed to provide reasonable rather than absolute assurance that the financial statements will be free from
material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial
report is complete and reliable in all material respects.
The City of Schertz's financial statements have been audited by Armstrong, Vaughan & Associates P.C. a firm of
licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that
the financial statements of the City of Schertz for the fiscal year ended September 30, 2010, are free of material
misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements; assessing the accounting principles used and significant estimates made by
management; and evaluating the overall financial statement presentation. The independent auditor concluded,
based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the City of
Schertz's financial statements for the fiscal year ended September 30, 2010, are fairly presented in conformity
with U.S. GAAP. The independent auditor's report is presented as the first component of the financial section of
this report.
GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic
financial statements in the form of Management's Discussion and Analysis (MD &A). This letter of transmittal is
designed to complement MD &A and should be read in conjunction with it. The City of Schertz's MD &A can be
found immediately following the report of the independent auditors.
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Profile of the Government
The City of Schertz, incorporated in 1958, is located in the central part of Texas, which is considered to be a top
growth area in the state, and one of the top growth areas in the country. The City of Schertz currently occupies a
land area of 29.85 square miles and serves a population of 31,465. The City of Schertz is empowered to levy a
property tax on both real and personal properties located within its boundaries. It also is empowered by state
statue to extend its corporate limits by annexation, which occurs periodically when deemed appropriate by the
governing body.
The City of Schertz has operated under the council - manager form of government since 30 November 1972.
Policymaking and legislative authority are vested in a City Council consisting of the mayor and 5 other members.
The City Council is responsible for establishing public policy on City matters by the passage of appropriate
ordinances and resolutions. The City Manager is responsible for overseeing the day -to -day operations of the
government, implementing policy established by City Council, and for appointing the heads of the various
departments. The council is elected on a non - partisan basis. Council members serve two -year staggered terms,
with two council members elected every two years. The mayor is elected to serve a two -year term. The mayor and
all five council members are elected at large.
The City of Schertz provides a full range of services, including police and fire protection, the construction and
maintenance of streets, recreational facilities, cultural events, water and sewer services and EMS services.
The annual budget serves as the foundation for the City of Schertz's financial planning and control. All
departments of the City of Schertz are required to submit requests for appropriation to the City Manager by June
of each year. The City Manager uses these requests as the starting point for developing a proposed budget. The
City Manager then presents this proposed budget to the council for review prior to 1 August. The council then
holds public hearings on the proposed budget and to adopt a final budget by no later than September 30th, the
close of the City of Schertz's fiscal year. The appropriated budget is prepared by each department (e.g. police).
Department heads may make transfers of appropriations within a department. The City Manager may make
transfers between and among departments if the total single transfer does not exceed $50,000. If such a transfer
occurs the City Manager shall inform City Council within 30 days. In no case shall money be transferred between
funds without City Council approval. Budget to actual comparisons are provided in this report for each individual
governmental fund for which an appropriated annual budget has been adopted. For the general fund, this
comparison is presented on page 52 as part of the required supplementary information.
Factors Affecting Financial Condition
The information presented in the financial statements is perhaps best understood when it is considered from the
broader perspective of the specific environment within which the City of Schertz operates.
Local economy. The City of Schertz currently enjoys a favorable economic environment and local indicators
point to continued stability, despite the national recession in late 2009. In the housing market, local indicators
point to a strong and stable market. The region has a manufacturing and industrial base that adds to the relative
stability of the unemployment rate, which currently stands at 5.7 %. Employment in the area should continue to be
strong with the announcement in March 2010 that SYSCO would build a new regional distribution center in
Schertz with 600 jobs. In addition, Caterpillar announced it would build a new facility to accommodate its engine
business. The region has a labor force of approximately 990,000, and this number is expected to increase in the
next several years as the region continues to experience population and business growth. Businesses with
headquarters or divisions located within the city's boundaries or in close proximity include Eye Care Centers of
America, Brandt Engineering, Cal -Tex Protective Coatings, Inc., Valero, FedEx Freight, Marshall Shredding
Company, Kraft Nabisco and Republic National Distributing Company.
Long -term financial planning. In 2006, the citizens approved bond propositions for streets and drainage
improvements, a new library and additional recreational facilities. Streets and drainage improvements are ongoing.
The Recreation Center opened in April 2010 and the Library was completed in August 2009. Total projected cost
to the City of Schertz is $38,500,000.
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Cash management policies and practices. During the year, temporarily idle cash was invested through State
local investment pools. Cash available for longer term investments was invested in agency bonds and Certificates
of Deposit. Cash in the State local investment pools are essentially liquid. Longer term investments had an
average maturity of 3 years. The average yield on investments was about .75 percent. Active involvement in
investment vehicles was limited due to the continuation of extremely low interest rates and market uncertainty.
The rate of return was simply not sufficient to justify the management expense.
Risk Management. During 2010, the City continued a risk management program for worker's compensation.
Various control techniques, including employee accident prevention training, have been implemented during the
year to minimize accident - related losses. Third -parry coverage is currently maintained for individual worker's
compensation claims and all other potential losses. Additional information on the City of Schertz's risk
management activity can be found in the notes to the financial statements.
Pension bcnclits. The City of Schertz sponsors an agent multiple- employer defined benefit pension plan for its
employees. Each year, an independent actuary engaged by the pension plan calculates the amount of the annual
contribution the City of Schertz must make to the pension plan to ensure the plan will be able to fully meet its
obligations to retired employees on a timely basis. As a matter of policy, the City of Schertz fully funds each
year's annual required contribution to the pension plan as determined by the actuary. The remaining unfunded
amount is being systematically funded as part of the annual required contribution calculated by the actuary.
Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of
Achievement for Excellence in Financial Reporting to the City of Schertz for its comprehensive annual financial
report for the fiscal year ended September 30, 2009. This was the 22nd consecutive year that the City has
received this prestigious award. In order to be awarded a Certificate of Achievement, the City must publish an
easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both
generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe our current comprehensive annual
financial report continues to meet the Certificate of Achievement Program's requirements and we are submitting it
to the GFOA to determine its eligibility for another certificate.
The preparation of this report would not have been possible without the efficient and dedicated services of the
entire staff of the finance department. We would like to express our appreciation to all members of the
department who assisted and contributed to the preparation of this report.
In addition, without the assistance of each and every department head on staff, we would have none of the
successes we've enjoyed. Credit also must be given to the Mayor and the City Council for their unfailing support
for the City Manager and staff.
Respectfully submitted,
Don E. Taylor
City Manager
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MAYOR
MAYOR PRO -TEM
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CITY MANAGER
DIRECTOR OF FINANCE
CITY ATTORNEY
CITY AUDITOR
CITY OF SCHERTZ, TEXAS
CITY OFFICIALS
HONORABLE HAL BALDWIN
JIM FOWLER
DAVID SCAGLIOLA
GEORGE ANTUNA, JR.
CEDRIC EDWARDS, SR.
MICHAEL CARPENTER
DON E. TAYLOR
JUAN F. SANTOYA, JR.
MICHAEL SPAIN, FULBRIGHT & JAWORSKI, L.L.P
ARMSTRONG, VAUGHAN & ASSOCIATES, P.C.
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FINANCIAL SECTION
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INDEPENDENT AUDITOR'S REPORT
To the Honorable Mayor and
Members of the City Council
City of Schertz, Texas
We have audited the accompanying financial statements of the governmental activities, the business -
type activities, the aggregate discretely presented component units, each major fund, and the aggregate
remaining fund information of the City of Schertz, Texas, as of and for the year ended September 30, 2010,
which collectively comprise the City's basic financial statements, as listed in the table of contents. These
financial statements are the responsibility of the City of Schertz, Texas' management. Our responsibility is to
express opinions on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial statement presentation. We
believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business -type activities, the aggregate
discretely presented component units, each major fund, and the aggregate remaining fund information of the
City of Schertz, Texas, as of September 30, 2010, and the respective changes in financial position and cash
flows, where applicable, thereof for the year then ended in conformity with accounting principles generally
accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated
February 25, 2011 on our consideration of City of Schertz, Texas' internal control over financial reporting
and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant
agreements and other matters. The purpose of that report is to describe the scope of our testing of internal
control over financial reporting and compliance and the results of that testing and not to provide an opinion
on the internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards and should be considered in assessing the
results of our audit.
Accounting principles generally accepted in the United States of America require that management's
discussion and analysis, and budgetary comparison information and analysis of funding progress on pages 4
through 12 and 51 through 55 be presented to supplement the basic financial statements. Such information,
although not a part of the basic financial statements, is required by the Governmental Accounting Standards
Board, who considers it to be an essential part of financial reporting for placing the basic financial statements
in an appropriate operational, economic, or historical context. We have applied certain limited procedures to
the required supplementary information in accordance with auditing standards generally accepted in the
United States of America, which consisted of inquiries of management regarding the methods of preparing
the information and comparing the information for consistency with management's response to our inquiries,
the basic financial statements, and other knowledge we obtained during our audit of the basic financial
statements. We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City of Schertz, Texas, basic financial statements. The introductory section, combining and
individual nonmajor fund financial statements, other schedules, and statistical tables are presented for
purposes of additional analysis and are not a required part of the basic financial statements. The combining
and individual nonmajor fund financial statements and other schedules have been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures, including
comparing and reconciling such information directly to the underlying financial statements themselves, and
other additional procedures in accordance with auditing standards generally accepted in the United States of
America. In our opinion, the information is fairly stated in all material respects in relation to the basic
financial statements taken as a whole. The introductory section and statistical tables have not been subjected
to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we express
no opinion on them.
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Armstrong, Vaughan & Assoc., P.C.
February 25, 2011
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MANAGEMENTS DISCUSSION AND ANALYSIS
As management of the City of Schertz, we offer readers of the City's financial statements this narrative
overview and analysis of the financial activities of the City of Schertz for the fiscal year ended
September 30, 2010. We encourage readers to consider the information presented herein conjunction with
additional information that we have furnished in our letter of transmittal, which can be found in the
introductory section of this report.
Financial Highlights
The assets of the City of Schertz exceeded its liabilities at the close of the most recent fiscal year by
$116,049,440 (net assets). Of this amount, $10,193,212 (unrestricted net assets) may be used to meet the
City's ongoing obligations to citizens and creditors.
The City's total net assets increased by $1,856,050. All of the increase is attributable to capital
contributions from developers.
As of the close of the current fiscal year, the City's governmental funds reported combined ending fund
balances of $7,411,095, a decrease of $10,190,070 in comparison with the prior year.
At the end of the current fiscal year, unreserved fund balance for the general fund was $1,775,951 or
10.1% of total general fund expenditures, including capital outlay.
The City issued $1,580,000 in tax notes during 2010. The related principal and interest payment for the tax
notes are from an annual ad valorem tax levied against all taxable property within the City and revenues
from the EMS proprietary fund.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City's basic financial statements.
The City's basic financial statements comprise three components: 1) government -wide financial
statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains
other supplementary information in addition to the basic financial statements themselves.
Government -wide financial statements. The government -wide financial statements are designed to provide
readers with a broad overview of the City's finances, in a manner similar to a private- sector business.
The statement of net assets presents information on all of the City's assets and liabilities, with the
difference between the two reported as net assets. Over time, increases or decreases in net assets may
serve as a useful indicator of whether the financial position of the City of Schertz is improving or
deteriorating.
The statement of activities presents information showing how the City's net assets changed during the most
recent fiscal year. All changes in net assets are reported as soon as the underlying event giving to the
change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in
this statement for some items that will only result in cash flows in future fiscal periods (e.g. uncollected
taxes and earned but unused vacation leave).
Both of the government -wide financial statements distinguish functions of the City of Schertz that are
principally supported by taxes and intergovernmental revenues (governmental activities) from other
functions that are intended to recover all or a significant portion of their costs through user fees and
charges (business -type activities). The governmental activities of the City of Schertz include general
government, public safety, streets and parks, health, and culture and recreation. The business -type
activities of the City of Schertz include a water and sewer department and an emergency medical services
department.
The government -wide financial statements include not only the City of Schertz itself (known as the
primary government) but also legally separate component units for which the City is financially
accountable. Financial information for these component units is reported separately from the primary
government.
The government -wide financial statements can be found on pages 14 through 17 of this report.
Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over
resources that have been segregated for specific activities or objectives. The City of Schertz, like other
state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-
related legal requirements. The funds of the City of Schertz can be divided into two categories:
governmental and proprietary.
Governmental funds. Governmental funds are used to account for essentially the same functions reported
as governmental activities in the government -wide financial statements. However, unlike the government -
wide financial statements, governmental fund financial statements focus on near term inflows and outflows
of spendable resources, as well as on balances of spendable resources available at the end of the fiscal
year. Such information is useful in evaluating a government's near -term financing requirements.
Because the focus of governmental funds is narrower than that of the government -wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government -wide financial statements. By doing
so, readers may better understand the long -term impact of the government's near -term financing decisions.
Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures,
and changes in fund balances provide a reconciliation to facilitate this comparison between governmental
funds and governmental activities.
The City of Schertz maintains eleven individual governmental funds. Information is presented separately
in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures,
and changes in fund balances for the general fund, the debt service fund, and the capital projects fund, all
of which are considered to be major funds. Data from the other eight governmental funds are combined
into a single, aggregated presentation. Individual fund data for each of these non -major governmental
funds is provided in the form of combining statements elsewhere in this report.
The basic governmental fund financial statements can be found on pages 18 through 23 of this report.
Proprietary funds. The City of Schertz maintains one type of proprietary fund. Enterprise funds are used to
report the same functions presented as business -type activities in the government -wide financial
statements. The City of Schertz uses enterprise funds to account for its water and sewer department and
for its emergency medical services department.
Proprietary funds provide the same type of information as the government -wide financial statements, only
in more detail. The proprietary fund financial statements provide separate information for the water and
sewer department and for the emergency medical services department, both of which are considered to be
major funds of the City of Schertz.
5
The basic proprietary fund financial statements can be found on pages 24 through 28 of this report.
Notes to the financial statements. The notes provide additional information that is essential to a full
understanding of the data provided in the government -wide and fund financial statements. The notes to the
financial statements can be found on pages 29 through 50 of this report.
Other information. In addition to the basic financial statements and accompanying notes, this report also
presents certain required supplementary information concerning the City's general fund budgetary
schedule. The City of Schertz adopts an annual appropriated budget for its general fund. A budgetary
comparison schedule has been provided for the general fund to demonstrate compliance with this budget.
Required supplementary information can be found on pages 51 through 55 of this report.
The combining statements referred to earlier in connection with non -major governmental funds are
presented immediately following the required supplementary information. Combining and individual fund
statements and schedules can be found on pages 56 through 72 of this report.
Government -wide Financial Analysis
As noted earlier, net assets may serve over time as a useful indicator of a government's financial position.
In the case of the City of Schertz, assets exceeded liabilities by $116,049,440 at the close of the most
recent fiscal year.
The largest portion of the City's total net assets (90.3 %) reflects its investment in capital assets (e.g., land,
buildings, machinery, and equipment) less any related debt used to acquire those assets that is still
outstanding, plus bond proceeds that have not yet been signed. The City of Schertz uses these capital
assets to provide services to citizens; consequently, these assets are not available for operational type of
future spending. Although the City's investment in its capital assets is reported net of related debt, it
should be noted that the resources needed to repay this debt must be provided from other sources, since the
capital assets themselves cannot be used to liquidate these liabilities.
Current and Other Assets
Capital Assets
Total Assets
Long -Term Liabilities:
Outstanding
Other Liabilities
Total Liabilities
Net Assets:
Invested in Capital Assets,
Net of Related Debt
Restricted
Unrestricted
Total Net Assets
NET ASSETS
Governmental Activities
2010
2009
$ 12,518,142
$ 24,019,488
101,646,687
92,756,957
114,164, 829
116,776,445
Business -Type Activities
2010 2009
$ 11,316,172 $ 12,239,696
58,246,342 55,958,362
69,562,514 68,198,058
Total
2010
2009
$ 23,834,314
$ 36,259,184
159,893,029
148,715,319
183,727,343
184,974,503
48,038,998
49,832,864
11,165,385
11,739,156
59,204,383
61,572,020
5,180,308
6,430,736
3,293,212
2,777,357
8,473,520
9,208,093
53,219,306
56,263,600
14,458,597
14,516,513
67,677,903
70,780,113
54,010,139
57,324,482
50,778,490
50,047,301
104,788,629
107,371,783
1,067,599
1,170,786
-
-
1,067,599
1,170,786
5,867,785
2,017,577
4,325,427
3,633,244
10,193,212
5,650,821
$ 60,945,523
$ 60,512,845
$ 55,103,917
$ 53,680,545
$ 116,049,440
$ 114,193,390
Table A -1
An additional portion of the City's total net assets (.9 %) represents resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net assets, $10,193,212 may
be used to meet the government's ongoing obligations to citizens and creditors.
At the end of the current fiscal year, the City of Schertz is able to report positive balances in all three
categories of net assets, both for the government as a whole, as well as for its separate governmental and
business -type activities. The same situation held true for the prior fiscal year.
The government's net assets increased by $1,856,050 during the current fiscal year. One - hundred percent
of this increase represents capital contributions from developers.
The following table indicates changes in net assets for governmental and business -type activities:
Revenues:
Program Revenues:
Charges for Services
Operating Grants and Contributions
Capital Grants and Contributions
General Revenues
Property Taxes
Other Taxes
Unrestricted Investment Earnings
Miscellaneous
Total Revenues
Expenses:
General Government
Public Safety
Streets and Parks
Health
Culture and Recreation
Interest and Other Fees
Water and Sewer
EMS
Total Expenses
INCREASE IN NET ASSETS
BEFORE TRANSFERS
TRANSFERS
CHANGE IN NET ASSETS
NET ASSETS, BEGINNING
NET ASSETS, ENDING
Governmental Activities
Business -Type Activities
Total
2010
2009
2010
2009
2010
2009
$ 5,555,638
$ 4,521,705
$ 18,208,746
$ 17,557,655
$ 23,764,384
$ 22,079,360
534,267
797,659
-
-
534,267
797,659
1,248,646
6,184,328
973,437
2,241,726
2,222,083
8,426,054
9,715,645
8,980,102
-
-
9,715,645
8,980,102
5,994,057
5,816,022
-
-
5,994,057
5,816,022
92,208
339,403
36,824
128,233
129,032
467,636
648,169
605,503
236,173
110,516
884,342
716,019
23,788,630
27,244,722
19,455,180
20,038,130
43,243,810
47,282,852
7,996,952
7,695,768
-
-
7,996,952
7,695,768
7,829,350
7,697,131
7,829,350
7,697,131
4,113,949
3,815,342
4,113,949
3,815,342
344,588
360,604
344,588
360,604
897,946
800,305
897,946
800,305
2,188,588
1,780,791
-
-
2,188,588
1,780,791
-
-
14,434,709
13,568,065
14,434,709
13,568,065
-
-
3,581,678
3,365,544
3,581,678
3,365,544
23,371,373
22,149,941
18,016,387
16,933,609
41,387,760
39,083,550
417,257
5,094,781
1,438,793
3,104,521
1,856,050
8,199,302
15,421
1,060,607
(15,421)
(1,060,607)
-
-
432,678
6,155,388
1,423,372
2,043,914
1,856,050
8,199,302
60,512,845
54,357,457
53,680,545
51,636,631
114,193,390
105,994,088
$ 60,945,523
$ 60,512,845
$ 55,103,917
$ 53,680,545
$ 116,049,440
$ 114,193,390
Table A -2
7
$10,000,000
$9,000,000
$8,000,000
$7,000,000
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
Below is a graph showing total revenues by type for the City:
Total Revenues - Government -Wide
Charges for Operating Capital Property Other Taxes Unrestricted Miscellaneous
Services Grants and Grants and Taxes Investment
Contributions Contributions Earnings
2010
® 2009
Business -Type activities accounted for 76.7% of the growth in the net assets of the City of Schertz. Of this
increase, 68% is the result of capital contributions from developers. For the most part, increases in
expenses closely paralleled inflation and growth in the demand for services.
Total Expenses- Government -Wide
8
Revenues - Governmental Activities (Continued)
General Revenue by Source - Governmental Activities
Occupancy Tax, 2% � Miscellaneous, 4%
Franchise Tax, 9%
Sales Tax, 25%
Revenues - Business -Type Activities
Charges for services increased by $651,091. This increase was due to higher revenues from Water and
Sewer and EMS Operations. Capital grants and contributions decreased by $1,268,289. This decrease was
due to decreased capital contributions from developers.
20,500,000
20,000,000
19,500,000
19,000,000
18,500,000
18,000,000
17,500,000
17,000,000
16,500,000
16,000,000
15,500,000
15,000,000
2010 2009
I
$16,000,000
$14,000,000
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
Expenses- Business -Type Activities
Water and Sewer Utilities EMS
Financial Analysis of the Government's Funds
El Program Revenue
Program Expense
❑Nonoperating Revenues
0 Capital Contributions and Transfers
As noted earlier, the City of Schertz uses fund accounting to ensure and demonstrate compliance with
finance- related legal requirements.
Governmental funds. The focus of the City's governmental funds is to provide information on near -term
inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's
financing requirements. In particular, unreserved fund balance may serve as a useful measure of a
government's net resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the City's governmental funds reported combined ending fund
balances of $7,411,095. Of this total amount, $2,615,204 constitutes unreserved fund balance, which is
available for spending at the government's discretion. The remainder of fund balances is reserved of
designated to indicate that it is not available for new spending because it has already been committed to
pay debt service, for capital improvement projects, and other restricted purposes.
The general fund is the chief operating fund of the City of Schertz. At the end of the current fiscal year,
unreserved fund balance of the general fund was $1,775,951, while total fund balance was $2,386,902, an
increase of $359,309 from the prior year. The majority of this increase was from savings in budgeted
expenditures during the year. As a measure of the general fund's liquidity, it may be useful to compare
both unreserved fund balance and total fund balance to total fund expenditures. Unreserved fund balance
represents 10.1% of total general fund expenditures, including capital, while total fund balance represents
13.5% of that same amount.
The debt service fund has a total fund balance of $286,215 all of which is reserved for the payment of debt
service. The net decrease in fund balance during the current year in the debt service fund was $158,154.
10
The capital projects fund has a total fund balance of $3,734,301, a decrease of $10,608,252. This decrease
was from the expenditure of funds for various construction projects.
Proprietary funds. The City's proprietary funds provide the same type of information found in the
government -wide financial statements, but in more detail.
Unrestricted net assets of the water and sewer fund at the end of the year amounted to $4,109,970 and
those for the Schertz EMS fund amounted to $215,457.
General Fund Budgetary Highlights
Differences between the original budget and the final amended budget and the final budget and actual
expenditures can be briefly summarized as follows:
• The shortfall in City Manager's Office was due to a salary adjustment and training /travel.
• The shortfall in Other Departmental was due to approved tax abatements not being budgeted.
• The Police shortfall was due to replacement of a vehicle as a result of an accident.
• Parks Department shortfall was due mainly to water utility services being higher than expected.
• The Swimming Pool shortfall was due to higher than expected maintenance costs.
During the year, the over - expenditures were funded by the unrestricted fund balance, as intended.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital assets. The City's investment in capital assets for its governmental and business -type activities as
of September 30, 2010, amounts to $159,893,029 (net of accumulated depreciation).
Major capital asset events during the current fiscal year included the following:
The City completed construction of the Recreation Center, Schertz Parkway and Doerr Lane in 2010.
Land
Buildings and Improvements
Machinery, Equipment,
and Vehicles
Infrastructure
Construction in Progress
Accumulated Depreciation
TOTALS
CAPITAL ASSETS
(Net of Depreciation)
Governmental Business -Type
Activities Activities Total
2010 2009 2010 2009 2010 2009
$ 7,291,922 $ 6,975,895 $ 729,749 $ 608,638 $ 8,021,671 $ 7,584,533
34,508,230 27,260,602 62,872,054 62,653,319 97,380,284 89,913,921
5,590,437 4,977,910 2,440,753 2,380,609 8,031,190 7,358,519
66,274,863 59,399,055 - - 66,274,863 59,399,055
8,582,255 11,400,501 9,423,289 5,885,978 18,005,544 17,286,479
(20,601,020) (17,257,006) (17,219,503) (15,570,182) (37,820,523) (32,827,188)
$ 101,646,687 $ 92,756,957 $ 58,246,342 $ 55,958,362 $ 159,893,029 $ 148,715,319
Table A -3
Additional information on the City's capital assets can be found in Note 5 on pages 39 and 40 of this
report.
11
Long -Term Debt. At the end of the current fiscal year, the City of Schertz had total bonded debt
outstanding of $61,158,408. Of this amount, $55,255,000 comprises debt backed by the full faith and
credit of the government. The remainder of the City's debt represents bonds secured solely by specified
revenue sources, i.e., revenue bonds.
Table A -4
The City's total debt decreased by 3.3% during the current fiscal year from normally scheduled debt
service payments.
During 2010, the City issued $1,580,000 in tax notes during. The related principal and interest payment
for the tax notes are from an annual ad valorem tax levied against all taxable property within the City and
revenues from the EMS proprietary fund.
The City of Schertz's general fund maintains a "AA" rating and its water and sewer fund maintains an "A"
rating from Standard and Poor's.
Additional information on the City's long -term debt can be found in Note 9 on pages 42 through 44 of this
report.
Economic Factors and Next Year's Budgets and Rates
During the current fiscal year, unreserved fund balance in the general fund increased to $1,775,951. The
City of Schertz has not appropriated any portion of this amount for spending in the 2011 fiscal year
budget. The intention is to build up the unreserved fund balance to 3 to 6 months of operating expenses.
Water and sewer rates are expected to remain stable. A portion of the debt service fund balance will be
used to offset the debt service ad valorem rate.
Requests for Information
This financial report is designed to provide a general overview of the City's finances for all those with an
interest in the government's finances. Questions concerning any of the information provided in this report
or requests for additional financial information should be addressed to the Office of the Finance Director,
City of Schertz, 1400 Schertz Parkway, Schertz, Texas 78154.
12
Governmental
Business -Type
Activities
Activities
Total
2010 2009
2010
2009
2010
2009
General Obligation Bonds
$ 37,530,000 $ 38,485,000
$ - $
-
$ 37,530,000 $
38,485,000
Certificates of Obligation
11,575,650 12,373,850
6,149,350
6,571,150
17,725,000
18,945,000
Revenue Bonds
- -
5,460,000
5,805,000
5,460,000
5,805,000
Other Debt
133,408 -
310,000
7,000
443,408
7,000
TOTALS
$ 49.239.058 $ 50.858.850
$ 11.919.350 $
12.383.150
$ 61.158.408 $
63.242.000
Table A -4
The City's total debt decreased by 3.3% during the current fiscal year from normally scheduled debt
service payments.
During 2010, the City issued $1,580,000 in tax notes during. The related principal and interest payment
for the tax notes are from an annual ad valorem tax levied against all taxable property within the City and
revenues from the EMS proprietary fund.
The City of Schertz's general fund maintains a "AA" rating and its water and sewer fund maintains an "A"
rating from Standard and Poor's.
Additional information on the City's long -term debt can be found in Note 9 on pages 42 through 44 of this
report.
Economic Factors and Next Year's Budgets and Rates
During the current fiscal year, unreserved fund balance in the general fund increased to $1,775,951. The
City of Schertz has not appropriated any portion of this amount for spending in the 2011 fiscal year
budget. The intention is to build up the unreserved fund balance to 3 to 6 months of operating expenses.
Water and sewer rates are expected to remain stable. A portion of the debt service fund balance will be
used to offset the debt service ad valorem rate.
Requests for Information
This financial report is designed to provide a general overview of the City's finances for all those with an
interest in the government's finances. Questions concerning any of the information provided in this report
or requests for additional financial information should be addressed to the Office of the Finance Director,
City of Schertz, 1400 Schertz Parkway, Schertz, Texas 78154.
12
iv
5;
El
"CITp'
!V
BASIC FINANCIAL STATEMENTS
13
CITY OF SCHERTZ, TEXAS
STATEMENT OF NET ASSETS
SEPTEMBER 30, 2010
See Accompanying notes to basic financial statements.
14
Primary Government
Governmental
Business -Type
Component
ASSETS
Activities
Activities
Total
Units
Current Assets:
Cash and Cash Equivalents
$ 1,159,427
$ 895,260
$ 2,054,687
$ 675,590
Investments
2,136,379
3,516,388
5,652,767
2,588,603
Receivables
Delinquent Taxes, Net of
Allowance for Uncollectible
Accounts
1,233,532
-
1,233,532
334,703
Accounts and Other
1,654,953
2,981,364
4,636,317
138
Due from Primary Government
-
-
-
226,742
Accrued Interest Income
2,316
10,776
13,092
3,294
Inventories
46,473
137,483
183,956
-
Internal Balances
(1,020,140)
1,020,140
-
-
Total Current Assets
5,212,940
8,561,411
13,774,351
3,829,070
Noncurrent Assets:
Restricted Assets:
Cash and Cash Equivalents
492,297
2,014,375
2,506,672
-
Investments
6,226,800
554,186
6,780,986
-
Note Receivable
-
-
-
150,000
Deferred Charges
586,105
186,200
772,305
25,757
Capital Assets:
Land
7,291,922
729,749
8,021,671
-
Buildings and Improvements
34,508,230
62,872,054
97,380,284
-
Machinery, Equipment, and
Vehicles
5,590,437
2,440,753
8,031,190
-
Infrastructure
66,274,863
-
66,274,863
-
Construction in Progress
8,582,255
9,423,289
18,005,544
-
Accumulated Depreciation
(20,601,020)
(17,219,503)
(37,820,523)
-
Total Noncurrent Assets
108,951,889
61,001,103
169,952,992
175,757
TOTAL ASSETS
$ 114,164,829
$ 69,562,514
$183,727,343
$ 4,004,827
See Accompanying notes to basic financial statements.
14
CITY OF SCHERTZ, TEXAS
STATEMENT OF NET ASSETS (CONTINUED)
SEPTEMBER 30, 2010
LIABILITIES
Current Liabilities Payable from
Unrestricted Assets:
Withdrawals in Excess of Deposits
Accounts Payable
Accrued Liabilities
Due to Component Unit
Due to Other Governments
Unearned Revenue
Compensated Absences
Accrued Interest Payable
Current Portion of Long -Term Debt
Total Current Liabilities Payable
From Unrestricted Assets
Current Liabilities Payable, from
Restricted Assets:
Customer Deposits
Total Current Liabilities Payable
From Restricted Assets
Total Current Liabilities
Noncurrent Liabilities:
Long -Term Debt
Compensated Absences
Total Noncurrent Liabilities
TOTAL LIABILITIES
Net Assets:
Invested in Capital Assets,
Net of Related Debt
Restricted For:
Debt Service
Tree Mitigation
LEOSE
Technology
Court Security
Writing Next Chapter
Unrestricted
TOTAL NET ASSETS
TOTAL LIABILITIES &
NET ASSETS
Primary Government
Governmental Business -Type Component
Activities Activities Total Units
$ 58,366
$ 194,514
$ 252,880 $
-
1,655,410
1,575,164
3,230,574
201,069
566,690
210,415
777,105
7,752
226,742
-
226,742
-
234,504
-
234,504
-
-
48,255
48,255
-
119,072
33,147
152,219
3,654
353,218
71,733
424,951
10,135
1,939,183
863,326
2,802,509
370,000
5,153,185
2,996,554
8,149,739
592,610
27,123 296,658 323,781
27,123 296,658 323,781
5,180,308 3,293,212 8,473,520 592,610
47,562,709 11,032,797 58,595,506 1,740,000
476,289 132,588 608,877 -
48,038,998 11,165,385 59,204,383 1,740,000
53,219,306 14,458,597 67,677,903 2,332,610
54,010,139 50,778,490 104,788,629 -
338,697
- 338,697 -
164,424
- 164,424 -
12,353
- 12,353 -
269,739
- 269,739 -
133,005
- 133,005 -
149,381
- 149,381 -
5,867,785
4,325,427 10,193,212 1,672,217
60,945,523
55,103,917 116,049,440 1,672,217
S 114.164.829 S 69.562.514 S 183.727.343 S 4.004.827
See Accompanying notes to basic financial statements.
15
CITY OF SCHERTZ, TEXAS
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2010
Functions and Programs Expenses
Primary Government:
Governmental Activities:
General Government
Public Safety
Streets and Parks
Health
Culture and Recreation
Interest and Other Fees
Total Governmental Activities
Business -Type Activities
Water and Sewer
EMS
Total Business -Type Activities
Total Primary Government
Component Unit:
Program Revenues
Operating Capital
Charges for Grants and Grants and
Services Contributions Contributions
$ 7,996,952 $ 2,608,285 $ 73,542 $ 1,248,646
7,829,350 2,159,182 - -
4,113,949 511,641 - -
344,588 29,636 - -
897,946 246,894 10,426 -
2,188,588 - 450,299 -
23,371,373 5,555,638 534,267 1,248,646
14,434,709 15,147,332 - 973,437
3,581,678 3,061,414 - -
18,016,387 18,208,746 - 973,437
$ 41,387,760 $ 23,764,384 $ 534,267 $ 2,222,083
$ 2,483,553 $ 222,430 $ 36,119 $ -
General Revenues:
Taxes:
Ad Valorem
Sales
Franchise Fees
Hotel/Motel
Mixed Drink
Bingo
Unrestricted Investment Earnings
Gain (Loss) on Disposal of Capital Assets
Miscellaneous
Total General Revenues
Transfers
Change in Net Assets
Net Assets at Beginning of Year
Net Assets at End of Year
See Accompanying notes to basic financial statements.
16
Net (Expense) Revenue and
Changes in Net Assets
Primary Government
Governmental Business -Type
Activities Activities Total
$ (4,066,479)
(5,670,168)
(3,602,308)
(314,952)
(640,626)
(1,738,289)
(16,032,822)
$ (4,066,479)
(5,670,168)
(3,602,308)
(314,952)
(640,626)
(1,738,289)
(16,032,822)
- 1,686,060
1,686,060
- (520,264)
(520,264)
- 1,165,796
1,165,796
(16,032,822) 1,165,796
(14,867,026)
Component
Units
(2,225,004)
9,715,645
-
9,715,645
-
4,160,495
-
4,160,495
2,080,254
1,448,620
-
1,448,620
-
348,147
-
348,147
-
32,144
-
32,144
-
4,651
-
4,651
-
92,208
36,824
129,032
25,568
20,910
-
20,910
-
627,259
236,173
863,432
158,689
16,450,079
272,997
16,723,076
2,264,511
15,421
(15,421)
-
-
432,678
1,423,372
1,856,050
39,507
60,512,845
53,680,545
114,193,390
1,632,710
$ 60,945,523
$ 55,103,917
$ 116,049,440
$ 1,672,217
17
CITY OF SCHERTZ, TEXAS
BALANCE SHEET — GOVERNMENTAL FUNDS
SEPTEMBER 30, 2010
ASSETS
Cash and Cash Equivalents
Investments
Receivables
Taxes, Net
Accounts and Other
Due from Other Funds
Due from Component Unit
Accrued Interest
Inventory
Restricted Assets:
Cash and Cash Equivalents
Investments
TOTAL ASSETS
LIABILITIES AND FUND BALANCES
Liabilities:
Withdrawals in Excess of Deposits
Accounts Payable
Accrued Salaries and Benefits
Customer Deposits
Due to Other Governments
Due to Other Funds
Due to Component Unit
Unearned/ Deferred Revenues
Total Liabilities
Fund Balances:
Reserved for:
Inventory
Debt Service
Tree Mitigation
LEOSE
Technology
Court Security
Writing Next Chapter
Unreserved
Designated for Capital Improvement
Unreserved, Reported in
General Fund
Special Revenue Funds
Total Fund Balances
TOTAL LIABILITIES
AND FUND BALANCES
See Accompanying notes to basic financial statements.
General Capital Debt
Fund Projects Service
$ 981,538 $ - $ -
2,097,587 - -
1,146,914 - 52,482
1,608,411 46,542 -
15,977 16,615 -
2,316 - -
46,473 - -
- 112,039 126,922
- 5,518,784 159,293
$ 5.899216 $ 5.693.980 $ 338.697
984,372 670,226 -
566,690 - -
27,123 - -
234,504 - -
- 1,042,711 -
- 246,742 -
1,699,625 - 52,482
3,512,314 1,959,679 52,482
46,473 - -
- - 286,215
12,353 - -
269,739 - -
133,005 - -
149,381 - -
- 3,734,301
1,775,951 - -
2,386,902 3,734,301 286,215
$ 5.899216 $ 5.693.980 $ 338.697
18
Other
Nonmajor Total
Governmental Governmental
Funds Funds
$ 177,889
38,792
34,136
20,000
y 1,1J7,`TL/
2,136,379
1,233,532
1,654,953
32,592
20,000
2,316
46,473
253,336 492,297
548,723 6,226,800
$ 1.072.876 $ 13.004.769
$ 58,366
$ 58,366
812
1,655,410
-
566,690
-
27,123
-
234,504
10,021
1,052,732
-
246,742
-
1,752,107
69,199
5,593,674
- 46,473
- 286,215
164,424 164,424
- 12,353
- 269,739
- 133,005
- 149,381
- 3,734,301
- 1,775,951
839,253 839,253
1,003,677 7,411,095
$ 1.072.876 $ 13.004.769
19
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CITY OF SCHERTZ, TEXAS
RECONCILIATION OF BALANCE SHEET
SEPTEMBER 30, 2010
TOTAL FUND BALANCE - TOTAL GOVERNMENTAL FUNDS $ 7,411,095
Amounts reported for governmental activities in the Statement of Net Assets
are different because:
Capital Assets used in governmental activities are not financial resources
and, therefore, are not reported in the funds. 101,646,687
Other long -term assets are not available to pay for current- period expenditures
and, therefore, are deferred in the funds. 1,752,107
Deferred charges, consisting of debt issue costs, are amortized over the life
of the bond in the governmental activities, but were recognized in full in
the governmental funds. 586,105
Long -term liabilities, including bonds payable and capital leases, are not due and
payable in the current period and therefore, not reported in the funds:
Bonds Payable
(49,105,650)
Issuance Premium (to be Amortized as Interest Expense)
(274,450)
Issuance Discount (to be Amortized as Interest Expense)
11,616
Capital Lease Payable
(133,408)
Accrued Interest Payable
(353,218)
Compensated Absences
(595,361) (50,450,471)
TOTAL NET ASSETS OF GOVERNMENTAL ACTIVITIES
See accompanying notes to basic financial statements.
20
$ 60,945,523
CITY OF SCHERTZ, TEXAS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES —
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2010
REVENUES
Taxes
Permits and Fees
Service Fees
Fines and Fees
Sale of Property Forfeitures
Intergovernmental
Investment Earnings
Miscellaneous
TOTAL REVENUES
EXPENDITURES
Current:
General Government
Public Safety
Streets and Parks
Health
Culture and Recreation
Debt Service:
Principal
Interest and Fiscal Charges
Capital Outlay
TOTAL EXPENDITURES
Excess (Deficiency) of Revenues
Over (Under) Expenditures
OTHER FINANCING SOURCES (USES)
Proceeds from Issuance of Debt
Transfers In
Transfers (Out)
TOTAL OTHER FINANCING
SOURCES (USES)
Net Change in Fund Balance
Fund Balances at Beginning of Year
Fund Balances at End of Year
General
Fund
$ 12,020,100
1,056,716
2,296,451
1,655,183
50,000
34,228
514,653
17,627,331
Capital
Projects
101,361
52,779
261,707
415,847
Debt
Service
Fund
$ 3,363,046
372,480
3,364
3,738,890
6,665,308 130,666 -
7,409,720 - -
1,756,734 - -
331,860 - -
866,441 - -
14,886
1,311
602,398
17,648,658
(21,327)
148,294
232,430
(88)
380,636
359,309
2,027,593
$ 2,386,902
See accompanying notes to basic financial statements.
21
10,893,521
11,024,187
1,753,200
2,143,844
3,897,044
(10,608,340) (158,154)
88 -
88
(10,608,252)
14,342,553
$ 3,734,301
(158,154)
444,369
$ 286,215
Other
Nonmaj or
Governmental
Funds
$ 348,147
273,756
1,126
100,173
10,426
1,837
7,184
742,649
276,634
31,979
308,613
434,036
10,021
(227,030)
(217,009)
217,027
Total
Governmental
Funds
$ 15,731,293
1,330,472
2,297,577
1,655,183
100,173
534,267
92,208
783,544
22,524,717
7,072,608
7,409,720
1,756,734
331,860
866,441
1,768,086
2,145,155
11,527,898
32,878,502
(10,353,785)
148,294
242,539
(227,118)
163,715
(10,190,070)
786,650 17,601,165
$ 1,003,677
$ 7,411,095
22
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CITY OF SCHERTZ, TEXAS
RECONCILIATION OF THE STATEMENT OF REVENUES,
GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2010
10 1 W go I/,1►[0a1► all 0 111 :y_ \r/.6[oM`W WI kyl K W 11yJ1a 0411W, 0 a1101J.`�
Amounts reported for governmental activities in the Statement of Activities
are different because:
Governmental funds report capital outlays as expenditures. However, in the statement
of activities the cost of those assets is allocated over their estimated useful lives and
reported as depreciation expense. This is the amount by which capital outlays exceeded
depreciation in the current period.
Current Year Additions 26,322,537
Additions Previously Reported
as Construction in Progress (13,832,360)
Current Period Depreciation (3,460,868)
The net effect of various miscellaneous transactions involving capital assets (i.e., sales,
trade -ins, and donations) is to decrease net assets.
Revenues in the Statement of Activities that do not provide current financial resources
are not reported as revenues in the funds.
The issuance of long -term debt (e.g. bonds, leases) provides current financial resources
to governmental funds, which the repayment of the principal of long -term debt consumes
the current financial reources of governmental funds. Neither transaction, however, has
any affect on net assets. This amount is the net effect of these differences in the
treatment of long -term debt and related items.
Issuance of Debt (148,294)
Principal Repayments 1,768,086
Amortization of Premium, Discount
and Issuance Costs (21,654)
Some expenses reported in the Statement of Activities do not require the use of
current financial resources and, therefore, are not reported as expenditures in
governmental funds:
Compensated Absences
Accrued Interest
CHANGE IN NET ASSETS OF GOVERNMENTAL ACTIVITIES
See accompanying notes to basic financial statements.
23
(14,885)
(21,777)
$ (10,190,070)
9,029,309
(139,579)
171,542
1,598,138
(36,662)
$ 432,678
CITY OF SCHERTZ, TEXAS
STATEMENT OF NET ASSETS - PROPRIETARY FUNDS
SEPTEMBER 30, 2010
ASSETS
Current Assets:
Cash and Cash Equivalents
Investments
Accounts Receivable, Net of Allowance:
Customer Accounts
Due from Other Governments
Due from Other Funds
Accrued Interest
Inventory
Total Current Assets
Noncurrent Assets:
Restricted Assets:
Cash and Cash Equivalents
Investments
Deferred Charges
Capital Assets:
Land
Buildings and Improvements
Machinery, Equipment, and Vehicles
Construction in Progress
Less: Accumulated Depreciation
Total Noncurrent Assets
TOTAL ASSETS
See accompanying notes to basic financial statements.
Business -Type Activities - Enterprise Funds
Water
and Sewer Schertz
System EMS Total
$ 895,260
$ - $
895,260
3,216,195
300,193
3,516,388
1,476,456
683,908
2,160,364
821,000
-
821,000
1,011,298
31,413
1,042,711
10,776
-
10,776
67,007
70,476
137,483
7,497,992
1,085,990
8,583,982
2,014,375
-
2,014,375
554,186
-
554,186
172,577
13,623
186,200
729,749
-
729,749
62,865,554
6,500
62,872,054
1,203,080
1,237,673
2,440,753
9,423,289
-
9,423,289
(16,484,660)
(734,843)
(17,219,503)
60,478,150
522,953
61,001,103
$ 67,976,142
$ 1,608,943
$ 69,585,085
24
CITY OF SCHERTZ, TEXAS
STATEMENT OF NET ASSETS - PROPRIETARY FUNDS (CONTINUED)
SEPTEMBER 30, 2010
LIABILITIES
Current Liabilities:
Withdrawals in Excess of Deposits
Accounts Payable
Accrued Liabilities
Customer Deposits
Accrued Interest Payable
Due to Other Funds
Unearned Revenue
Compensated Absences
Revenue Bonds Payable - Current
Certificates of Obligation - Current
Tax Notes - Current
Total Current Liabilities
Noncurrent Liabilities:
Compensated Absences
Revenue Bonds Payable (Net of
Unamortized Discounts)
Certificates of Obligation
Tax Notes
Total Noncurrent Liabilities
TOTAL LIABILITIES
Net Assets:
Investment in Capital Assets
Unrestricted
Total Net Assets
TOTAL LIABILITIES & NET ASSETS
Business -Type Activities - Enterprise Funds
Water
and Sewer Schertz
System EMS Total
$ -
$ 194,514
$ 194,514
1,409,926
165,238
1,575,164
100,893
109,522
210,415
296,658
-
296,658
68,467
3,266
71,733
19,732
2,839
22,571
24,411
23,844
48,255
18,160
14,987
33,147
358,176
-
358,176
282,100
163,050
445,150
-
60,000
60,000
2,578,523
737,260
3,315,783
72,642
59,946
132,588
5,078,597
-
5,078,597
5,545,800
158,400
5,704,200
-
250,000
250,000
10,697,039
468,346
11,165,385
13,275,562 1,205,606
50,590,610 187,880
4,109,970 215,457
54,700,580 403,337
$ 67,976,142 $ 1,608.943
See accompanying notes to basic financial statements.
25
14,481,168
50,778,490
4,325,427
55,103,917
$ 69,585,085
CITY OF SCHERTZ, TEXAS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2010
OPERATING REVENUES
Fees Charged to Users
Other Charges
TOTAL OPERATING REVENUES
OPERATING EXPENSES
Personnel Services
Water Purchase
Sewage Treatment
General and Administrative
Contractual Services
Supplies and Maintenance
Depreciation
TOTAL OPERATING EXPENSES
OPERATING INCOME (LOSS)
NONOPERATING REVENUES (EXPENSES)
Investment Earnings
Lease Income
Miscellaneous
Interest Expense
Amortization of Bond Issue Costs
TOTAL NONOPERATING
REVENUES (EXPENSES)
INCOME BEFORE CONTRIBUTIONS
AND TRANSFERS
Transfers Out
Capital Contributions
CHANGE IN NET ASSETS
NET ASSETS AT BEGINNING OF YEAR
NET ASSETS AT END OF YEAR
See accompanying notes to basic financial statements.
Business -Type Activities - Enterprise Funds
Water
and Sewer Schertz
System EMS Total
$ 14,944,255
$ 3,061,414
$ 18,005,669
49,393
-
49,393
14,993,648
3,061,414
18,055,062
1,953,916
2,557,316
4,511,232
1,599,886
-
1,599,886
5,088,070
-
5,088,070
3,451,235
253,358
3,704,593
104,433
233,291
337,724
202,340
381,949
584,289
1,515,223
134,098
1,649,321
13,915,103
3,560,012
17,475,115
1,078,545
(498,598)
579,947
36,530
294
36,824
153,684
-
153,684
76,935
159,238
236,173
(504,389)
(19,314)
(523,703)
(15,217)
(2,352)
(17,569)
(252,457)
137,866
(114,591)
26
826,088
(15,421)
973,437
1,784,104
(360,732) 465,356
(15,421)
973,437
(360,732) 1,423,372
52,916,476 764,069 53,680,545
$ 54,700,580 $ 403,337 $ 55,103,917
CITY OF SCHERTZ, TEXAS
STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2010
Cash Flows From Operating Activities:
Cash Received From Customers and Users
Other Cash Received From Nonoperating Activity
Cash Paid to Employees for Services
Cash Paid to Supplier for Goods & Services
Net Cash Provided (Used) by
Operating Activities
Cash Flows From Noncapital Financing Activities:
Cash Advances From /(To) Other Funds
Net Cash Provided (Used) by
Noncapital Financing Activities
Cash Flows From Capital and Related
Financing Activities:
Acquisition and Construction of Capital Assets
Payments Toward Projects in Progress
Proceeds from Debt Issuance
Interest Payments paid on Long -Term Debt
Principal paid on Long -Term Debt
Net Cash Provided (Used) by Capital and
Related Financing Activities
Business -Type Activities - Enterprise Funds
Water
and Sewer Schertz
System EMS Total
$ 14,085,150
$ 3,226,193
$ 17,311,343
76,935
159,238
236,173
(1,967,927)
(2,580,867)
(4,548,794)
(10,219,151)
(706,464)
(10,925,615)
1,975,007
98,100
2,073,107
2,030,821
31,106
2,061,927
2,030,821
31,106
2,061,927
(339, 846)
(2,563,874)
(507,947)
(622,400)
(4,034,067)
Cash Flows From Investing Activities:
Proceeds from Sale/Maturity of Investments 1,808,663
Payments from Lease 153,684
Interest and Investment Earnings 47,804
Net Cash Provided (Used) by Investing Activities 2,010,151
Net Increase (Decrease) in Cash
and Cash Equivalents
See accompanying notes to basic financial statements.
27
$ 1,981,912
(60,144)
310,000
(29,223)
(151,400)
69,233
(198,733)
294
(198,439)
(399,990)
(2,563,874)
310,000
(537,170)
(773,800)
(3,964,834)
1,609,930
153,684
48,098
1,811,712
$ 1,981,912
CITY OF SCHERTZ, TEXAS
STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2010
Cash and Cash Equivalents at Beginning of Year:
Cash and Cash Equivalents
Restricted Cash and Cash Equivalents
Cash and Cash Equivalents at End of Year:
Cash and Cash Equivalents
Restricted Cash and Cash Equivalents
Reconciliation of Operating Income
to Net Cash Provided (Used) by
Operating Activities:
Operating Income
Adjustments to Reconcile Operating
Income to Net Cash Provided (Used)
by Operating Activities:
Depreciation
Miscellaneous Income from Nonoperating Activity
Changes in Assets and Liabilities:
Decrease (Increase) in Assets:
Customer Receivable
Inventory
Increase (Decrease) in Liabilities:
Withdrawals in Excess of Deposits
Accounts Payable
Accrued Liabilities
Customer Deposits
Unearned Revenue
Compensated Absences
NET CASH PROVIDED BY (USED FOR)
OPERATING ACTIVITIES
Transactions Not Affecting Cash and
Cash Equivalents:
Contributions - Capital Assets
See accompanying notes to basic financial statements.
28
Business -Type Activities - Enterprise Funds
Water
and Sewer Schertz
System EMS Total
$ 142,010
785,713
927,723
$ 142,010
785,713
927,723
895,260 - 895,260
2,014,375 - 2,014,375
$ 2,909,635 $ - $ 2,909,635
1,078,545 (498,598) 579,947
1,515,223
134,098
1,649,321
76,935
159,238
236,173
(897,849)
140,935
(756,914)
(31,059)
(11,888)
(42,947)
-
21,201
21,201
257,872
152,821
410,693
3,850
(15,855)
(12,005)
(35,060)
-
(35,060)
24,411
23,844
48,255
(17,861)
(7,696)
(25,557)
$_1,975 007
$ 98,100
$ 2,073,107
$ 152,437 $ - $ 152,437
NOTES TO BASIC FINANCIAL STATEMENTS
29
CITY OF SCHERTZ, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Rebortina Entit
The City of Schertz is a municipal corporation governed by an elected mayor and five- member council. The
accompanying financial statements present the City and its discretely presented component units, entities for
which the City is considered to be financially accountable. The discretely presented component units are
reported in a separate column in the government -wide financial statements to emphasize that they are legally
separate from the City.
Discretely presented component units - The component units' column in the government -wide financial
statements includes the financial data of the component units of the City of Schertz, Texas. The component
units are presented as governmental fund types. Following is a summary of the component units:
1. Schertz Economic Development Corporation - The Corporation was organized for the purpose of
promoting economic development in order to eliminate unemployment and underemployment and to
promote and encourage employment and public welfare of, for, and on behalf of the City. The board of
directors consists of seven (7) members appointed by the city council. The City is financially
accountable for the Corporation because the city council approves the corporation's budget.
2. Library Advisory Board - The library provides services to the citizens of the City of Schertz as well as
surrounding communities. The function of the library board is to work cooperatively with City
management to provide funding and oversight for special projects of the library. All projects must be
approved by the city council. The library's governing board is appointed by the city council.
Parks and Recreation Foundation — The Corporation was organized to improve and expand the
community parks, trails, venues, and recreational programs providing adventure and opportunities for all.
The majority of the foundation's governing board are employees of the City, the accounting records are
maintained by the finance department, cash is pooled with City funds, and the City provides financing
for the foundation and includes the Foundation as part of the City budget process. The City and its
citizens are the sole beneficiaries of the Foundation.
Complete financial statements for the Schertz Economic Development Corporation may be obtained at City
Hall located at 1400 Schertz Parkway, Schertz, Texas 78154. Separate financials are not issued for the
Library Advisory Board or Parks and Recreation Foundation.
B. Government -Wide and Fund Financial Statements
The government -wide financial statements (i.e., the statement of net assets and the statement of activities)
report information on all of the activities of the primary government and its component units. For the most
part, the effect of interfund activity has been removed from these statements. Governmental activities, which
normally are supported by taxes and intergovernmental revenues, are reported separately from business -type
activities, which rely to a significant extent on fees and charges for support. Likewise, the primary
government is reported separately from legally separate component units for which the primary government
is financially accountable.
30
CITY OF SCHERTZ, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2010
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
B. Government -Wide and Fund Financial Statements (Continued)
The statement of activities demonstrates the degree to which the direct expenses of a given function or
segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific
function or segment. Program revenues include 1) charges of customers or applicants who purchase, use, or
directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and
contributions that are restricted to meeting the operational or capital requirements of a particular function or
segment. Taxes and other items not properly included among program revenues are reported instead as
general revenues.
Separate financial statements are provided for governmental funds and proprietary funds. Major individual
governmental funds and major individual enterprise funds are reported as separate columns in the fund
financial statements.
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government -wide financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded
when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash
flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar
items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been
met.
Governmental fund financial statements are reported using the current financial resources measurement focus
and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable
and available. Revenues are considered to be available when they are collectible within the current period or
soon thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be
available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally
are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures,
as well as expenditures related to compensated absences and claims and judgments, are recorded only when
payment is due.
Property and sales taxes, utility franchises, and interest associated with the current fiscal period are all
considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period.
All other revenue items are considered to be measurable and available only when cash is received by the
City.
The City reports the following major governmental funds:
The General Fund is the City's primary operating fund which accounts for all financial
resources of the general government, except those required to be accounted for in another
fund.
The Debt Service Fund accounts for the resources accumulated and payments made for
principal and interest on long -term general obligation debt of governmental funds.
31
CITY OF SCHERTZ, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2010
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
The Capital Proiects Fund accounts for financial resources to be used for the acquisition
and construction of major capital facilities and is principally financed by the sale of bonds or
certificates of obligation and grants.
The government reports the following major proprietary funds:
The Water and Sewer System Fund accounts for the water and sewer services provided to
the citizens through user charges.
The EMS Fund accounts for the emergency medical services provided to the citizens of the
City and other participating governments through user charges.
Private - sector standards of accounting and financial reporting issued prior to December 1, 1989, generally
are followed in both the government -wide and proprietary fund financial statements to the extent that those
standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board
(GASB). Governments also have the option of following subsequent private- sector guidance for their
business -type activities and enterprise funds, subject to this same limitation. The City has elected not to
follow subsequent private- sector guidance.
As a general rule the effect of interfund activity has been eliminated from the government -wide financial
statements. Exceptions to this are charges between the City's general government function and various other
functions of the City. Eliminations of these charges would distort the direct costs and program revenues
reported for the various functions concerned.
Amounts reported as program revenues include 1) charges to customers or applications for goods, services,
or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions. General
revenues include all taxes and investment earnings.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues
and expenses generally result from providing services and producing and delivering goods in connection
with a proprietary fund's principal ongoing operations. The principal operating revenues of the water and
sewer enterprise fund and the EMS enterprise fund are charges to customers for sales and services.
Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and
depreciation on capital assets. All revenues and expenses not meeting this definition are reported as
nonoperating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted
resources first, then unrestricted resources as they are needed.
D. Cash and Cash Equivalents
The City's cash and cash equivalents are considered to be cash on hand and demand deposits
32
CITY OF SCHERTZ, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2010
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
E. Investments
The City is authorized to invest in (1) obligations of the United States or its agencies and instrumentalities;
(2) direct obligations of the State of Texas or its agencies; (3) other obligations, the principal of and interest
on which are unconditionally guaranteed or insured by the State of Texas of the United States; (4) obligations
of states, agencies, counties, cities, and other political subdivisions of any state having been rated of not less
than "AA" or its equivalent; (5) certificates of deposit issued by state and national banks domiciled in Texas
that are guaranteed or insured by the Federal Deposit Insurance Corporation (FDIC) or its successor, or
secured by obligations mentioned above; and (6) fully collateralized direct repurchase agreements having a
defined termination date. In addition, the City is authorized to invest in local government investment pools.
The investment pools operate in accordance with appropriate state laws and regulations and have regulatory
oversight from the Texas Public Funds Investment Act Sec. 2256.0016. The fair value of the City's position
in each pool is the same as the fair value of the pool shares.
F. Receivables and Pavables
Activities between the funds that are representative of interfund loans outstanding at the end of the fiscal year
are referred to as due to /from other funds. Any residual balances outstanding between the governmental
activities and business -type activities are reported in the government -wide financial statements as "internal
balances ".
Accounts receivable are reported net of allowances for uncollectible accounts. The allowance account
represents management's estimate of uncollectible accounts based upon experience and historical trends.
Property taxes for the City are levied each October 1 on the taxable value as of the preceding January 1, the
date a lien attaches, for all taxable real and personal property located in the City. Taxes are due by
January 31 following the October 1 assessment date and become delinquent on February 1, at which time
they begin accruing penalty and interest. The enforceable legal claim date for property taxes is the
assessment date; therefore, the City did not record a receivable for accrual of future taxes at year end.
Accordingly, no current taxes receivable are reported. Delinquent taxes have been reported in the financial
statements net of the allowance for uncollectible taxes. Tax revenues are recognized as they become
available. Accordingly, an amount equal to taxes not yet available has been reported as unearned revenue at
the government fund level.
G. Inventories
All inventories are valued at cost using the first -in /first -out (FIFO) method. Inventories of governmental
funds are recorded as expenditures when consumed rather than when purchased.
H. Restricted Assets
Certain proceeds of the City's enterprise fund revenue bonds, as well as certain resources set aside for their
repayment, are classified as restricted assets on the balance sheet because they are maintained in separate
bank accounts and their use is limited by applicable bond covenants.
33
CITY OF SCHERTZ, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2010
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
1. Capital Assets
Capital assets, which include land, buildings and improvements, machinery, equipment, vehicles, and
infrastructure assets (i.e., roads, bridges, sidewalks, and similar items), are reported in the applicable
governmental or business -type activities columns in the government -wide financial statements. Capital
assets are defined by the City as assets with an initial, individual cost of more than $5,000 and an estimated
useful life in excess of one year. When capital assets are purchased, they are capitalized and depreciated in
the government -wide financial statements and the proprietary fund statements. Capital assets are recorded as
expenditures of the current period in the governmental fund financial statements.
Capital assets are valued at cost where historical records are available and at an estimated cost where no
records exist. Donated capital assets are valued at their estimated fair market value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend
asset lives are not capitalized.
Improvements to capital assets that materially extend the life of the asset or add to the value are capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest
incurred during construction will not be capitalized in the governmental activities on the government -wide
financial statements; however capitalization of interest is required for business -type activities. There was no
capitalized interest during the current fiscal year.
Capital assets are depreciated over their useful lives on a straight -line basis as follows:
Assets
Buildings and Improvements
Machinery, Equipment, and Vehicles
Infrastructure
J. Compensated Absences
Useful Lives
(Years)
10 -50
2 -20
15 -30
It is the City's policy to permit employees to accumulate earned but unused vacation and compensatory time
benefits. There is no liability for unpaid accumulated sick leave since the City does not have a policy to pay
any amounts when employees separate from service with the City. All vacation and compensatory time pay
is accrued when incurred in the government -wide and proprietary fund financial statements. A liability for
these amounts is reported in governmental funds only if they have matured, for example, as a result of
employee resignations and retirements.
34
CITY OF SCHERTZ, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2010
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
K. Long -Term Obligations
In the government -wide financial statements, and proprietary fund types in the fund financial statements,
long -term debt and other long -term obligations are reported as liabilities in the applicable governmental
activities, business -type activities, or proprietary fund type statement of net assets. Bond premiums and
discounts, losses on defeasance, as well as issuance costs, are deferred and amortized over the life of the
bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or
discount and losses on defeasance. Bond issuance costs are reported as deferred charges and amortized over
the term of the related debt.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as
bond issuance costs, during the current period. The face amount of debt issued is reported as other financing
sources. Premiums received on debt issuances are reported as other financing sources while discounts on
debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual
debt proceeds received, are reported as debt service expenditures.
L. Fund Equitv
In the fund financial statements, governmental funds report reservations of fund balance for amounts that are
not available for appropriation or are legally restricted by outside parties for use for a specific purpose.
Designations of fund balance represent tentative management plans that are subject to change. As of
September 30, 2010, the Recycling Fund had a deficit fund balance of $58,366.
M. Net Assets
Net assets represent the difference between assets and liabilities. Net assets invested in capital assets, net of
related debt consist of capital assets, net of accumulated depreciation, reduced by the outstanding balances of
any borrowing used for the acquisition, construction or improvements of those assets, and adding back
unspent proceeds. Net assets are reported as restricted when there are limitations imposed by creditors,
grantors, or laws or regulations of other governments.
N. Estimates
The preparation of financial statements, in conformity with generally accepted accounting principles,
requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosures of contingent liabilities at the date of the financial statements and the reported
amounts of revenue and expenses during the reporting period. Actual amounts could differ from those
estimates.
O. Budgetary Information
Annual budgets are adopted on a basis consistent with generally accepted accounting principles for all
governmental funds except the library grant special revenue fund, police department forfeiture special
revenue fund and the capital projects fund, which adopts project - length budgets.
35
CITY OF SCHERTZ, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2010
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
P. Comparative Data/Reclassifications
Comparative data for the prior year has been provided for the General Fund and Utility Fund in the fund
financial statements in order to provide an understanding of the changes in financial position and operation
of these funds.
Certain reclassifications have been made to the 2009 financial statements to conform to the 2010 financial
statement presentation. The reclassifications had no effect on the changes in financial position.
NOTE 2 - CASH, CASH EQUIVALENTS AND INVESTMENTS
As of September 30, 2010, the City had the following pooled investment funds:
Interest Kate Risk As a means of limiting its exposure to fair value losses arising from rising interest rates,
the City's investment policy limits the City's investment portfolio to highly liquid investments to meet
unanticipated cash requirements, and /or to redeploy cash into other investments expected to outperform
current holdings.
Credit Risk. State law limits investments in certificates of deposit to guaranteed or insured by the Federal
Deposit Insurance Corporation, or its successor or the National Credit Union Share Insurance Fund, or its
successor and investment pools continuously rated no lower than AAA or an equivalent rating by at least one
nationally recognized rating service. The City's investment policy does not further limit its investment
choices. As of September 30, 2010, the City's investments in the pooled investment funds were rated AAA
by Standard & Poor's. The City has invested in Federal Home Loan Mortgage Corporation and Federal
National Mortgage Association.
Custodial Credit Risk - Deposits. In the case of deposits, this is the risk that in the event of a bank failure,
the government's deposits may not be returned to it. As of September 30, 2010, the City's petty cash on
hand was $2,780. The carrying amount of cash and cash equivalents (including withdrawals in excess of
deposits and certificates of deposit) were $4,305,699 and the bank balance was $5,389,649. Of the bank
balance, $250,000 was covered by federal deposit insurance at each Chase Bank and Schertz Bank and Trust
and the City's depository had pledged securities having a face value of $10,400,855 and a market value of
$9,795,645 as collateral for the City's deposits. Funds were fully insured and collateralized. All collateral is
held in the City's name.
36
Book Value
Fair Value
Weighted
Primary
Component
Primary
Component
Average
Investment Type
Government
Unit
Government
Unit
Maturity
LOGIC
$ 4,823,452
$ -
$ 4,823,452
$ -
1.000
Lone Star Investment Pool
2,740,381
-
2,740,381
-
1.000
MBIA Municipal Investors
645,157
1,536,173
645,157
1,536,173
1.000
Federated Money Market
1,870,885
30,620
1,870,885
30,620
1.000
Schertz Bank & Trust -
Certificate of Deposit
1,030,000
1,021,810
1,030,000
1,021,810
0.260
Capital One -
U.S. Agency Securities
1,323,878
-
1,323,878
-
2.270
Total
$ 12,433,753
$ 2,588,603
$ 12,433,753
$ 2,588,603
6.530
Interest Kate Risk As a means of limiting its exposure to fair value losses arising from rising interest rates,
the City's investment policy limits the City's investment portfolio to highly liquid investments to meet
unanticipated cash requirements, and /or to redeploy cash into other investments expected to outperform
current holdings.
Credit Risk. State law limits investments in certificates of deposit to guaranteed or insured by the Federal
Deposit Insurance Corporation, or its successor or the National Credit Union Share Insurance Fund, or its
successor and investment pools continuously rated no lower than AAA or an equivalent rating by at least one
nationally recognized rating service. The City's investment policy does not further limit its investment
choices. As of September 30, 2010, the City's investments in the pooled investment funds were rated AAA
by Standard & Poor's. The City has invested in Federal Home Loan Mortgage Corporation and Federal
National Mortgage Association.
Custodial Credit Risk - Deposits. In the case of deposits, this is the risk that in the event of a bank failure,
the government's deposits may not be returned to it. As of September 30, 2010, the City's petty cash on
hand was $2,780. The carrying amount of cash and cash equivalents (including withdrawals in excess of
deposits and certificates of deposit) were $4,305,699 and the bank balance was $5,389,649. Of the bank
balance, $250,000 was covered by federal deposit insurance at each Chase Bank and Schertz Bank and Trust
and the City's depository had pledged securities having a face value of $10,400,855 and a market value of
$9,795,645 as collateral for the City's deposits. Funds were fully insured and collateralized. All collateral is
held in the City's name.
36
CITY OF SCHERTZ, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2010
NOTE 2 - CASH, CASH EQUIVALENTS, AND INVESTMENTS (Continued)
As of September 30, 2010, the Economic Development Corporation (Component Unit) held funds of
$109,658 in the pooled cash of the primary government, $200 in petty cash on hand, and $503,953 in
certificates of deposit with a term less than three months. The Corporation's funds are fully secured under
City's pledged securities.
Custodial Credit Risk - Investments. For an investment, this is the risk that, in the event of the failure of the
counterparty, the government will not be able to recover the value of its investment or collateral securities
that are in the possession of an outside party. All of the government securities owned by the City are held by
its agent in the City's name.
NOTE 3 - RECEIVABLES
Receivables as of year -end for the government's individual major funds and nonmajor funds and enterprise
fund in the aggregate, including the applicable allowances for uncollectible accounts, are as follows:
Receivables:
Property Taxes
Sales Taxes
Occupancy Taxes
Franchise Taxes
Customer Accounts
Court Fines
Other
Gross Receivables
Less: Allowance for
Uncollectibles
Net Total Receivables
Governmental Funds
Other
General Funds
Proprietary Funds
Water and Schertz
Sewer Fund EMS Total
$ 115,412 $ 55,832 $ - $
669,406 - -
- 34,136 -
369,021 - -
17,273 - 1,525,387
3,909,429 - -
- 46,542 821,000 _
5,080,541 136,510 2,346,387
- $ 171,244
- 669,406
- 34,136
- 369,021
1,083,351 2,626,011
- 3,909,429
- 867,542
1,083,351 8,646,789
2,325,216 3,350 48,931 399,443 2,776,940
$ 2,755,325 $ 133,160 $ 2,297,456 $ 683,908 $ 5,869,849
Governmental funds report deferred revenue in connection with receivables for revenue that is not
considered to be available to liquidate liabilities of the current period. Governmental funds also defer
revenue recognition in connection with resources that have been received, but not yet earned. At the end of
the current fiscal year, the various components of unearned/ deferred revenue and unavailable revenue
reported in the governmental funds were as follows:
37
Unavailable
General Fund
Delinquent Property Taxes Receivable
$ 108,487
Court Fines
1,591,138
Total General Fund
1,699,625
Debt Service Fund
Delinquent Property Taxes Receivable
52,482
Total Debt Service Fund
52,482
Total Governmental Funds
$1.752.107
37
CITY OF SCHERTZ, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2010
NOTE 3 - RECEIVABLES (Continued)
The Schertz Economic Development Corporation approved a loan to SPV Ventures for $150,000 for twenty
years at 0 %. Management considers the loan to be fully collectible. Additionally, there is no imputed
interest included in the face amount of the Note Receivable.
NOTE 4 - PROPERTY TAX
Taxes are levied on and payable as of October 1. The City has contracted with the Guadalupe County Tax
Assessor - Collector to collect taxes on its behalf. Current taxes become delinquent February 1. Current year
delinquent taxes not paid by July 1 are turned over to attorneys for collection action. The total taxable value
as of October 1, 2009, upon which the fiscal 2010 levy was based, was $1,933,159,122 (i.e., market value
less exemptions). The estimated market value was $2,105,380,460, making the taxable value 91.82% of the
estimated market value.
The City is permitted by the Constitution of the State of Texas to levy taxes up to $2.50 per $100 of taxable
assessed valuation for all governmental purposes. Pursuant to a decision of the Attorney General of the State
of Texas, up to $1.50 per $100 of assessed valuation may be used for the payment of long -term debt. The
combined tax rate to finance general governmental services, including the payment of principal and interest
on long -term debt for the year ended September 30, 2010, was $0.4342 per $100 of assessed value, which
means that the City has a tax margin of $2.0658 for each $100 value and could increase its annual tax levy by
approximately $39,935,201 based upon the present assessed valuation of $1,933,159,122 before the limit is
reached. However, the City may not adopt a tax rate that exceeds the tax rate calculated in accordance with
the Texas Property Tax Code without holding a public hearing. The Property Tax Code subjects an increase
in the effective tax rate to a referendum election, if petitioned by registered voters, when the effective tax rate
increase is more than eight percent (8 %) of the previous year's effective tax rate.
Property taxes are recorded as receivables and unearned revenues at the time the taxes are assessed. In
governmental funds, revenues are recognized as the related ad valorem taxes are collected. Additional
amounts estimated to be collectible in the time to be a resource for payment of obligations incurred during
the fiscal year and therefore susceptible to accrual in accordance with generally accepted accounting
principles have been recognized as revenue. In the government -wide financial statements, the entire levy is
recognized as revenue, net of estimated uncollectible amounts (if any), at the levy date.
38
CITY OF SCHERTZ, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2010
NOTE 5 - CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2010 was as follows:
Beginning Transfers/ Ending
Balance Increases Deletions Balance
Governmental Activities:
Capital Assets, Not Being Depreciated:
Land $ 6,975,895 $ 316,527 $ (500) $ 7,291,922
Construction in Progress 11,400,501 11,014,114 (13,832,360) 8,582,255
Total Capital Assets Not Being Depreciated 18,376,396 11,330,641 (13,832,860) 15,874,177
Capital Assets, Being Depreciated:
Buildings and Improvements
Machinery, Equipment, and Vehicles
Streets and Infrastructure
Total Capital Assets Being Depreciated
Accumulated Depreciation:
Buildings and Improvements
Machinery, Equipment, and Vehicles
Streets and Infrastructure
Total Accumulated Depreciation
Total Capital Assets Being Depreciated, Net
Governmental Activities Capital Assets, Net
Business -Type Activities:
Capital Assets, Not Being Depreciated:
Land
Construction in Progress
Total Assets Not Being Depreciated
Capital Assets, Being Depreciated:
Buildings and Improvements
Machinery, Equipment, and Vehicles
Total Capital Assets Being Depreciated
Accumulated Depreciation:
Buildings and Improvements
Machinery, Equipment, and Vehicles
Total Accumulated Depreciation
Total Capital Assets Being Depreciated, Net
Business -Type Activities Capital Assets, Net
27,260,602 7,247,628 - 34,508,230
4,977,910 868,460 (255,933) 5,590,437
59,399,055 6,875,808 - 66,274,863
91,637,567 14,991,896 (255,933) 106,373,530
(3,950,267) (854,575) - (4,804,842)
(2,524,808) (518,284) 116,854 (2,926,238)
(10,781,931) (2,088,009) - (12,869,940)
(17,257,006) (3,460,868) 116,854 (20,601,020)
74,380,561 11,531,028 (139,079) 85,772,510
$92,756,957 $22,861,669 $(13,971,9391 $101,646,687
Beginning
Transfers/
Ending
Balance
Increases
Deletions
Balance
$ 608,638
$ 121,111
$ -
$ 729,749
5,885,978
3,720,437
(183,126)
9,423,289
6,494,616
3,841,548
(183,126)
10,153,038
62,653,319
218,735
-
62,872,054
2,380,609
60,144
-
2,440,753
65,033,928
278,879
-
65,312,807
(14,233,034)
(1,437,295)
-
(15,670,329)
(1,337,148)
(212,026)
-
(1,549,174)
(15,570,182)
(1,649,321)
-
(17,219,503)
49,463,746
(1,370,442)
-
48,093,304
$55,958,362
$ 2,471,106
$ (183,1261
$ 58,246,342
39
CITY OF SCHERTZ, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2010
NOTE 5 - CAPITAL ASSETS (Continued)
Depreciation expense was charged to functions /programs of the primary government as follows:
Governmental Activities:
General Government
Public Safety
Streets and Parks
Culture and Recreation
Health
Total Depreciation Expense - Governmental Activities
Business -Type Activities:
Water and Sewer System
EMS
Total Depreciation Expense - Business Type Activities
NOTE 6 - INTERFUND BALANCES AND TRANSFERS
The composition of interfund balances as of September 30, 2010 is as follows:
Receivable Fund
General Fund
General Fund
General Fund
Capital Projects Fund
Water & Sewer Fund
Schertz EMS
Payable Fund
Water & Sewer Fund
Schertz EMS
Nonmajor Governmental
Water & Sewer Fund
Capital Projects Fund
Capital Projects Fund
$ 651,968
412,388
2,354,671
29,684
12,157
$ 3,460.868
$ 1,515,223
134,098
$ 1,649,321
Amount
$ 3,117
2,839
10,021
16,615
1,011,298
31,413
Balances resulted from the lag time between dates that 1) interfund goods and services are provided or
reimbursable expenditures occur, and 2) transactions are recorded in the accounting system, and 3) payments
between funds are made.
The following schedule briefly summarizes the City's transfer activity:
Transfers In
Transfers Out
Amount
Purpose
General
Nonmajor Governmental
$ 217,009
Subsidy for Administrative Expenditures
Capital Projects
General
88
Funding for Previous Capital Projects
General
Water & Sewer
15,421
Funding for Previous Capital Projects
Nonmajor Governmental
Nonmajor Governmental
10,021
Funding for Previous Capital Projects
40
CITY OF SCHERTZ, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2010
NOTE 7 - OPERATING LEASE
The City made agreements with the following telecommunication companies for cellular tower space. The
following are the minimum lease receivables.
NOTE 8 - CAPITAL LEASE
Clearwire
AT &T
2011
$ 43,282
2012
44,580
2013
45,917
2014
-
$ 99,866
$ 133,779
NOTE 8 - CAPITAL LEASE
Clearwire
Sprint
$ 24,411
$ 25,462
24,412
26,225
25,144
27,012
25,899
-
$ 99,866
$ 78,699
X7-- "" - - -- '1` -1 -I
IV ✓u,viv w 1✓ uc✓
39,830 135,047
41,025 139,098
- 25,899
$ 119,525 $ 431,869
The City has entered into a lease agreement to finance the mowers. The lease agreement qualifies as a
capital lease for accounting purposes and, therefore, has been recorded at the present value of the future
minimum lease payments as of the inception date.
The assets acquired through capital leases are as follows:
Assets:
Mowers $ 148,294
Less Accumulated Depreciation (7,415)
Total 140,879
Future minimum obligations and the net present value of these minimum lease payments as of
September 30, 2010 are as follows:
Year Ending September 30,
2011
2012
2013
2014
Total Payments
Less: Amount Representing Interest
Present Value of Minimum Lease Payments
41
$ 38,705
38,705
38,705
22,578
138,693
5,285
$ 133,408
CITY OF SCHERTZ, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2010
h[171MILM [1WIV lNWINVIIII :3111
The City issues a variety of long -term debt instruments in order to acquire and /or construct major capital
facilities and equipment for governmental activities. These instruments include general obligation bonds,
certificates of obligation, and capital leases. These debt obligations are secured by either future property or
hotel tax revenue or liens on property and equipment.
A summary of the terms of general obligation bonds and combination of tax and revenue certificates of
obligation outstanding at September 30, 2010, follows:
Issue Amount
Primary Government
General Obligation Bonds
2006 Series
2007 Series
2008 Series
2009 Series
Maturity
$ 15,000,000
2031
6,000,000
2027
9,900,000
2028
9,500,000
2033
Rate Balance
4.0%-5.25%
4.07%
4.13%
2.0%-5.50%
$ 13,755,000
5,275,000
9,370,000
9,130,000
Certificates of Obligation
6,600,000
2026
4.01%
$ 5,680,000
2001 Series $
4,500,000
2021
4.1%-6.0%
3,050,000
2003 Series
3,360,000
2018
2.0%-3.9%
1,745,000
2004 Series
7,750,000
2023
4.0%-4.7%
6,115,000
2007 Series CIB 2
438,900
2016
4.01%
287,100
2007 Series CIB 4
569,500
2016
4.01%
378,550
Total Governmental Long -Term Obligations
$ 49,105,650
Revenue Bonds
2001 Series $
5,550,000
2021
3.4%-5.2%
$ 2,840,000
2005 Series
3,200,000
2025
3.0%-4.0%
2,620,000
Certificates of Obligation
2007 Series CIB 1 $
6,600,000
2026
4.01%
$ 5,680,000
2007 Series CIB 2
226,100
2016
4.01%
147,900
2007 Series CIB 3
500,000
2011
4.01%
135,000
2007 Series CIB 4
280,500
2016
4.01%
186,450
2010 Tax Notes $
310,000
2015
1.20% - 2.55%
310,000
Total Business -Type Long -Term Obligations
$ 11,919,350
Economic Development Corporation
Certificates of Obligation
2007 Series CIB 5 $
1,300,000
2016
4.01%
$ 840,000
2010 Tax Notes $
1,270,000
2015
1.20% - 2.55%
1,270,000
Total Economic Development Corporation Long
-Term Obligations
$ 2,110,000
42
CITY OF SCHERTZ, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2010
NOTE 9 - LONG -TERM DEBT (Continued)
Debt Service Requirements
Annual debt service requirements of bonded debt as of September 30, 2010, are as follows:
September 30,
2011
2012
2013
2014
2015
2016-2020
2021-2025
2026-2030
2031 -2033
Total
September 30,
2011
2012
2013
2014
2015
2016-2020
2021-2025
2026
Total
Fiscal Year Ending
September 30,
2011
2012
2013
2014
2015
2016
Total
Principal
$ 1,889,850
2,043,200
2,209,850
2,373,150
2,486,450
12,873,150
12,530,000
9,905,000
2,795,000
Interest
$ 2,085,953
2,012,621
1,933,376
1,848,442
1,756,800
7,235,292
4,437,049
1,794,025
164,122
Total
$ 3,975,803
4,055,821
4,143,226
4,221,592
4,243,250
20,108,442
16,967,049
11,699,025
2,959,122
$ 49,105.650 $ 23267,680 $ 72,373.330
Principal
$ 865,150
756,800
785,150
821,850
863,550
3,941,850
3,415,000
470,000
Interest
$ 496,563
462,467
432,217
400,121
366,065
1,307,234
484,909
18,847
Total
$ 1,361,713
1,219,267
1,217,367
1,221,971
1,229,615
5,249,084
3,899,909
488,847
$ 11,919.350 $ 3,968,423 $ 15,887.773
Economic Develonment Comoration
Principal Interest Total
$ 370,000 $ 58,107 $ 428,107
380,000 48,330 428,330
390,000 38,504 428,504
400,000 27,671 427,671
415,000 15,610 430,610
155,000 6,216 161,216
$ 2,110.000 $ 194,438 $ 2,304.438
43
CITY OF SCHERTZ, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2010
NOTE 9 - LONG -TERM DEBT (Continued)
Changes in Long -Term Debt
Total Economic Development $ 969,736 $ 1,273,654 $ 129,736 $ 2,113,654 $ 373,654
During the year, the City issued $1,580,000 of tax notes, with the payment of the related principal and
interest to be made from an annual ad valorem tax levied against all taxable property within the City and
revenues from the proprietary funds. The tax notes were issued to provide funds to purchase a new EMS
vehicle and make improvements for SYSCO in the amounts of $310,000 and $1,270,000, respectively. In
the government -wide financial statements, bond issuance costs are deferred and amortized over the life of the
bonds. Bond issuance costs are reported as deferred charges.
Bonded debt of the City consists of various series of general obligation bonds, revenue bonds, certificates of
obligation, and tax notes. General obligation bonds and certificates of obligation are direct obligations of the
City for which its full faith and credit are pledged, and are payable from taxes levied on all taxable property
located within the City. Revenue bonds are generally payable from pledged revenues generated by the water
and sewer fund. The debenture agreement for water and sewer bonds requires that funds be available for
1 /12th of the principal and 1 /6th of the interest requirements of the next fiscal year.
The City is required to accumulate a reserve fund in an amount equal to the average principal and interest on
the revenue bonds. The City has purchased a surety bond through MBIA Insurance Corporation to fund the
required reserve amount.
44
Balance
Balance
Due Within
9/30/2009
Additions
Reductions
9/30/2010
One Year
Governmental Activities:
General Obligation Bonds
$38,485,000
$ -
$ 955,000
$37,530,000
$1,065,000
Premium
288,456
-
14,006
274,450
14,006
Certificates of Obligation
12,373,850
-
798,200
11,575,650
824,850
Discount
(12,510)
-
(894)
(11,616)
(893)
Capital Lease
-
148,294
14,886
133,408
36,220
Compensated Absences
580,476
130,980
116,095
595,361
119,072
Total Governmental Activities
$ 51,715,272
$ 279,274
$1,897,293
$ 50,097,253
$2,058,255
Business -Type Activities:
Revenue Bonds
$ 5,805,000
$ -
$ 345,000
$ 5,460,000
$ 360,000
Unamortized Discount
(25,051)
-
(1,824)
(23,227)
(1,824)
Certificates of Obligation
6,571,150
-
421,800
6,149,350
445,150
Tax Notes
-
310,000
-
310,000
60,000
Public Facility Loan
7,000
-
7,000
-
-
Compensated Absences Payable
191,292
12,701
38,258
165,735
33,147
Total Business -Type Activities
$12,549,391
$ 322,701
$ 810,234
$12,061,858
$ 896,473
Economic Development Corporation:
Certificates of Obligation
$ 965,000
$ -
$ 125,000
$ 840,000
$ 125,000
Tax Notes
-
1,270,000
-
1,270,000
245,000
Compensated Absences
4,736
3,654
4,736
3,654
3,654
Total Economic Development $ 969,736 $ 1,273,654 $ 129,736 $ 2,113,654 $ 373,654
During the year, the City issued $1,580,000 of tax notes, with the payment of the related principal and
interest to be made from an annual ad valorem tax levied against all taxable property within the City and
revenues from the proprietary funds. The tax notes were issued to provide funds to purchase a new EMS
vehicle and make improvements for SYSCO in the amounts of $310,000 and $1,270,000, respectively. In
the government -wide financial statements, bond issuance costs are deferred and amortized over the life of the
bonds. Bond issuance costs are reported as deferred charges.
Bonded debt of the City consists of various series of general obligation bonds, revenue bonds, certificates of
obligation, and tax notes. General obligation bonds and certificates of obligation are direct obligations of the
City for which its full faith and credit are pledged, and are payable from taxes levied on all taxable property
located within the City. Revenue bonds are generally payable from pledged revenues generated by the water
and sewer fund. The debenture agreement for water and sewer bonds requires that funds be available for
1 /12th of the principal and 1 /6th of the interest requirements of the next fiscal year.
The City is required to accumulate a reserve fund in an amount equal to the average principal and interest on
the revenue bonds. The City has purchased a surety bond through MBIA Insurance Corporation to fund the
required reserve amount.
44
CITY OF SCHERTZ, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2010
NOTE 10 - RETIREMENT PLAN
A. Plan Description
The City provides pension benefits for its eligible employees through a nontraditional, joint contributory,
hybrid defined benefit plan in the state -wide Texas Municipal Retirement System (TMRS), an agent
multiple - employer public employee retirement system. The plan provisions that have been adopted by the
City are within the options available in the governing state statutes of TMRS.
TMRS issues publicly available comprehensive annual financial report that includes financial statements and
required supplementary information (RSI) for TMRS; the report also provides detailed explanations of the
contribution, benefits and actuarial methods and assumptions used by the System. This report may be
obtained by writing TMRS, P.O. Box 149153, Austin, Texas 78714 -9153 or by calling 800 - 924 -8677; in
addition, the report is available on TMRS' website at -,\Nv,%-.TMRS.com.
The plan provisions are adopted by the governing body of the City, within the options available in the state
statutes governing TMRS. Plan provisions for the City were as follows:
Employee deposit rate
Matching ratio (City to Employee)
Years required for vesting
Service retirement eligibilty (expressed as
age / years of service)
Updated Service Credit
Annuity Increase (to retirees)
B. Contributions
Plan Year 2009
7.0%
2 to 1
5
60/5,0/20
100% Repeating,
Transfers
70% of CPI Repeating
Plan Year 2010
7.0%
2 to 1
5
60/5,0/20
100% Repeating,
Transfers
70% of CPI Repeating
Under the state law governing TMRS, the contribution rate for each city is determined annually by the
actuary, using the Projected Unit Credit actuarial cost method. This rate consists of the normal cost
contribution rate and the prior service contribution rate, both of which are calculated to be a level percent of
payroll from year to year. The normal cost contribution rate finances the portion of an active member's
projected benefit allocated annually; the prior service contribution rate amortizes the unfunded (overfunded)
actuarial liability (asset) over the applicable period for the City. Both the normal cost and prior service
contribution rates include recognition of the projected impact of annually repeating benefits, such as Updated
Service Credits and Annuity Increases.
The City contributes to the TMRS Plan at an actuarially determined rate. Both the employees and the City
make contributions monthly. Since the City needs to know its contribution rate in advance for budgetary
purposes, there is a one -year delay between the actuarial valuation that is the basis for the rate and the
calendar year when the rate goes into effect. The annual pension cost and net pension obligation (asset) is as
follows:
Annual Actual Percentage of Net Pension
Fiscal Year Pension Cost Contribution Made APC Contribution Obligation
2010 1,926,623 1,926,623 100% -
2009 1,73 8,696 1,73 8,696 100% -
2008 1,380,930 1,380,930 100% -
45
CITY OF SCHERTZ, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2010
NOTE 10 - RETIREMENT PLAN (Continued)
B. Contributions (Continued)
The required contribution rates for fiscal year 2010 were determined as part of the December 31, 2007 and
2008 actuarial valuations. Additional information as of the latest actuarial valuation, December 31, 2009,
also follows:
Valuation Date
Acturial Cost Method
Amortization Method
Remaining Amortization Period
Asset Valuation Method
Acturial Assumptions:
Investment Rate of Return*
Projected Salary Increases*
* Includes Inflation at
Cost -of- Living Adjustments
December 31, 2007
Projected Unit Credit
Level Percent of Payroll
30 years - Closed Period
Amortized Cost
7.0%
Varies by age and service
3.0%
2.1%
December 31, 2008
Projected Unit Credit
Level Percent of Payroll
29 years - Closed Period
Amortized Cost
7.5%
Varies by age and service
3.0%
2.1%
December 31, 2009
Projected Unit Credit
Level Percent of Payroll
28 years - Closed Period
10 -year Smoothed Market
7.5%
Varies by age and service
3.0%
2.1%
The funded status as of December 31, 2009, the most recent actuarial valuation date, is as follows:
Actuarial UAAL as a
Actuarial Actuarial Accrued Unfunded Percentage of
Valuation Date Value of Assets Liability (AAL) Funded Ratio AAL (UAAL) Covered Payroll Covered Payroll
12/31/2009 $ 13,946,029 $ 25,584,067 54.5% $ 11,638,038 $ 12,321,349 94.5%
The schedule of funding progress, presented as Required Supplementary Information following the notes to
the financial statements, presents multi -year trend information about whether the actuarial value of plan
assets is increasing or decreasing over time relative to the actuarial accrued liability of benefits.
C. Other Post - Employment Benefits
The City also participates in the cost sharing multiple - employer defined benefit group -term life insurance
plan operated by TMRS known as Supplemental Death Benefits Fund (SDBF). The City elected, by
ordinance, to provide group -term life insurance coverage to both current and retired employees. The City
may terminate coverage under and discontinue participation in the SDBF by adopting an ordinance before
November 1 of any year to be effective the following January 1.
The death benefit for active employees provides a lump -sum payment approximately equal to the employee's
annual salary (calculated based on the employee's actual earnings, for the 12 -month period preceding the
month of death); retired employees are insured for $7,500; this coverage is an "other postemployment
benefit," or OPEB.
The City contributes to the SDBF at a contractually required rate as determined by an annual actuarial
valuation. The rate is equal to the cost of providing one -year term life insurance. The funding policy for the
SDBF program is to assure that adequate resources are available to meet all death benefit payments for the
upcoming year; the intent is not to pre -fund retiree life insurance during the employees' entire careers.
46
CITY OF SCHERTZ, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2010
NOTE 10 - RETIREMENT PLAN (Continued)
C. Other Post - Employment Benefits (Continued)
The City's contributions to the TMRS SDBF for the years ended 2010, 2009, and 2008 were $21,794,
$22,389, and $21,067, respectively, which equaled the required contributions each year.
NOTE 11 - JOINT VENTURE
A joint venture is a legally separate entity that results from a contractual arrangement and that is owned,
operated, or governed by two or more participating governments. The following entity meets the criteria as a
joint venture:
Schertz /Seguin Local Government Corporation
The Schertz /Seguin Local Government Corporation is a public, nonprofit corporation organized to aid, assist,
and act on behalf of the cities of Schertz and Seguin in acquiring, constructing, maintaining, and operating a
water utility system. The participating governments have an ongoing financial responsibility to fund the
operation of the corporation through either purchase of services or by subsidizing the operations.
Contributions to the corporation are reflected as "operating expenses" in the water and sewer fund and
totaled $1,599,886 for the year ended September 30, 2010.
Separate financial statements for the Schertz /Seguin Local Government Corporation may be obtained from
the City of Seguin, 210 East Gonzales Street, Seguin, Texas 78156.
The City of Schertz is jointly liable, together with the City of Seguin, for operating deficits and long -term
debt of the Schertz /Seguin Local Government Corporation. Following is a summary of financial data as
reported in the Corporation's audited financial statements dated September 30, 2009:
ASSETS
Current Assets $ 4,130,611
Restricted Cash and Cash Equivalents 4,554,952
Property, Plant & Equipment 49,631,688
Other Assets 1,989,747
TOTAL ASSETS $ 60.306.998
LIABILITIES & NET ASSETS:
Current Liabilities $ 2,254,223
Revenue Bonds (Less Current Maturities and Unamortized Discounts) 53,420,346
TOTAL LIABILITIES 55,674,569
NET ASSETS:
Invested in Capital Assets, Net of Related Debt -
Restricted 2,324,729
Unrestricted 2,307,700
TOTAL NET ASSETS 4,632,429
TOTAL LIABILITIES AND NET ASSETS $ 60.306.998
47
CITY OF SCHERTZ, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2010
NOTE 11 - JOINT VENTURE (Continued)
Schertz /Seguin Local Government Corporation (Continued)
The Corporation had revenue bonds outstanding in the amount of $57,180,000 (as of September 30, 2009) to
provide funds to build, improve, extend, enlarge and repair the Corporation's utility system, fund a reserve,
and pay the costs of bond issuance. The bond resolution pledges interngovernmental contract revenues from
the cities of Schertz and Seguin (the participating governments) to bond holders. Under the
intergovernmental water supply contract, the participating governments are unconditionally obligated to pay
their respective shares of annual contract revenue bond debt service from the operation of their respective
utility systems.
The Corporation issued additional contract revenue bonds on July 8, 2010 in the amount of $22,140,000.
The bonds were issued to fund construction costs of enlarging the current utility system, fund reserves, and
pay the costs of bond issuance. The issue required the Corporation to contribute $1,000,000 toward funding
the Debt Service Reserve Fund.
NOTE 12 - COMMITMENTS AND CONTINGENCIES
Tar Increment Financing (the "Zone')
The City is a principal in the City of Schertz Tax Increment Reinvestment Zone 42, pursuant to Chapter 311
of the Texas Tax Code. Under the terms of the Zone agreement, the City of Schertz, Bexar County, and San
Antonio River Authority are funding infrastructure improvements through tax increment financing to the
Sedona Development Project.
At the time the Zone was created, the property tax base was "frozen" and increment taxes resulting from the
increases to property tax base are being used to finance Zone improvements. The total projected cost is a
combined figure of $45,000,000. Project costs of the developer will be funded up to 100% of the tax
increment generated by the City of Schertz, Bexar County, and San Antonio River Authority. The Zone has
a statutory termination date of December 31, 2027. The TIRZ collected $15,838 in 2010, which will be used
to reimburse the developer for infrastructure improvements.
Litigation
The City is the subject of various claims and litigation that have arisen in the course of its operations.
Management is of the opinion that the City's liability in these cases, if decided adversely to the City, will not
have a material effect on the City's financial position.
48
CITY OF SCHERTZ, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2010
NOTE 12 - COMMITMENTS AND CONTINGENCIES (Continued)
Construction Commitments
The City of Schertz has entered into commitments for various projects as follows:
Primary Government:
Governmental Activities:
Rural Roads
Weiderstein- Chelsea
Northcliffe
Main Street
Loan Oak Emergency Exit
GreenValley Road
West Dietz Creek Upstream
Drainage Elbel
IH 35 / IH 10 Initiative
Total Governmental Commitments
Business -Type Activities:
East Live Oak Water Plant Improvements
Aviation Heights Waterline
FM 3009 W &S Relocation
Town Creek Project Ph2
Hillbrook Drive Project
Total Business -Type Activities
Total Estimated Future Commitments
Economic Development Corporation:
SYSCO Project
IH 35 / IH 10 Initiative
Total Estimated Future Commitments
RiskManagement
Estimated Project
Cost to City
$ 4,480,505
1,034,575
3,524,550
737,264
117,704
279,366
2,227,541
337,217
289,388
13,028,110
3,669,609
399,020
1,558,121
6,880,245
220,000
12,726,995
Expended to Estimated Future
Date Commitment
$ 2,257,656
1,031,796
2,230,666
16,782
12,704
277,336
2,203,005
46,526
8,076,471
2,813,960
69,039
1,546,327
3,452,116
23,936
7,905,378
$ 2,222,849
2,779
1,293,884
720,482
105,000
2,030
24,536
290,691
289,388
4,951,639
855,649
329,981
11,794
3,428,129
196,064
4,821,617
$ 25,755,105 $ 15,981,849 $ 9,773,256
$ 1,200,000 $ 505,782 $ 694,218
399,175 - 399,175
$ 1,599,175 $ 505,782 $ 1,093,393
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets;
errors and omissions; and natural disasters. The City contracts with the Texas Municipal League
Intergovernmental Risk Pool, a public entity risk pool currently operating as a common risk management and
insurance program providing insurance coverage in the following areas: general liability, automobile liability
and physical damage, law enforcement liability, worker's compensation, real and personal property, mobile
equipment, and errors and omissions liability. TML is a multi - employer group that provides for a
combination of risk sharing among pool participants and stop loss coverage. Contributions are set annually
by the provider. Liability by the City is generally limited to the contributed amounts. Annual contributions
for the year ended September 30, 2010 were $478,817 for property and casualty and workers compensation
coverage. There were no significant increases or decreases in coverage from fiscal year 2009.
49
CITY OF SCHERTZ, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2010
NOTE 13 - SUBSEQUENT EVENTS
Subsequent to year end, the following contracts for projects were awarded by the City:
Project
Northcliffe Street Reconstruction
Amount
$ 1,322,530
$ 1,322,530
The City also approved issuing City of Schertz, Texas General Obligation Refunding Bonds, Series 2010 for
$2,865,000 with an interest rate between 2 %and 4% to be paid over ten years.
During the November 2010 election, the following propositions were passed:
Proposition 1 - $6,625,000 for an 8 lane competition pool and aquatic facility as well as
relocation of and improvements to the Schertz Play - scape.
Proposition 2 - $6,000,000 for athletic /recreational sports field.
Proposition 3 - $2,250,000 for renovation of the 5,400 square foot Schertz animal services
facility.
Proposition 4 - $1,000,000 for improvements to jumpstart the downtown revitalization on or near
FM 78 and Main Street.
50
REQUIRED SUPPLEMENTARY INFORMATION
51
CITY OF SCHERTZ, TEXAS
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
YEAR ENDED SEPTEMBER 30, 2010
(WITH COMPARATIVE ACTUAL TOTALS FOR 2009)
Public Safety
Police Department
4,272,619
4,266,619
4,281,040
Variance With
4,091,859
Fire Department
2,500,652
2,507,652
2010
Final Budget -
2009
Inspection
Budgeted Amounts
Actual
Positive
Actual
436,003
Original
Final
Amounts
(Negative)
Amounts
REVENUES
Total Public Safety
$ 7,573,670
$ 7,574,670
S 7,409,720
$ 164,950
Property Taxes
$ 6,458,061
$ 6,458,061
S 6,374,190
$ (83,871)
$ 5,689,992
Sales Tax
4,370,000
4,370,000
4,160,495
(209,505)
4,011,855
Franchise Taxes
1,552,129
1,552,129
1,448,620
(103,509)
1,462,199
Beverage and Bingo Taxes
49,300
49,300
36,795
(12,505)
36,894
Permits and Fees
920,230
920,230
1,056,716
136,486
800,381
Service Fees
2,161,188
2,161,188
2,296,451
135,263
1,891,856
Fines and Fees
1,687,530
1,687,530
1,655,183
(32,347)
1,517,821
Intergovernmental
50,000
50,000
50,000
-
13,000
Investment Earnings
193,600
193,600
34,228
(159,372)
137,050
Miscellaneous
555,300
555,300
514,653
(40,647)
580,904
TOTAL REVENUES
17,997,338
17,997,338
17,627,331
(370,007)
16,141,952
EXPENDITURES
Current:
General Government:
City Council
48,469
48,469
36,922
11,547
31,111
City Manager
713,435
713,435
723,636
(10,201)
671,567
Planning and Zoning
162,125
162,125
159,693
2,432
188,602
Legal
257,000
257,000
213,812
43,188
331,154
Customer Relations
88,018
88,018
88,837
(819)
111,694
Municipal Court
326,790
326,790
287,414
39,376
238,217
Facilities Maintenance
881,977
880,277
850,784
29,493
734,277
Purchasing and Asset Management
298,857
250,197
237,246
12,951
202,476
City Secretary
179,208
179,208
173,120
6,088
166,405
Finance
455,137
456,137
419,397
36,740
430,266
Information Technology
779,914
779,914
760,106
19,808
502,923
Human Resources
333,370
333,370
285,402
47,968
231,872
Records Management
72,512
72,512
52,495
20,017
163,786
Engineering
201,486
201,486
175,767
25,719
178,284
Geographic Information Systems
129,050
129,050
113,757
15,293
109,405
Fleet Services
300,743
300,743
303,428
(2,685)
275,457
Special Events
154,344
154,344
91,153
63,191
67,934
Public Affairs
491,367
543,027
539,692
3,335
484,784
Other
1,007,496
984,568
1,152,647
(168,079)
1,003,527
Total General Government
6,881,298
6,860,670
6,665,308
195,362
6,123,741
Public Safety
Police Department
4,272,619
4,266,619
4,281,040
(14,421)
4,091,859
Fire Department
2,500,652
2,507,652
2,389,640
118,012
2,345,033
Inspection
403,038
403,038
361,847
41,191
436,003
Marshal Service
397,361
397,361
377,193
20,168
362,606
Total Public Safety
$ 7,573,670
$ 7,574,670
S 7,409,720
$ 164,950
$7,235,501
52
CITY OF SCHERTZ, TEXAS
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL (CONTINUED)
YEAR ENDED SEPTEMBER 30, 2010
(WITH COMPARATIVE ACTUAL TOTALS FOR 2009)
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
(127,812)
(51,379)
(21,327)
Variance With
(2,444,348)
OTHER FINANCING SOURCES (USES)
2010
Final Budget -
2009
Proceeds from Issuance of Debt
Budgeted Amounts
Actual
Positive
Actual
-
Original
Final
Amounts
(Negative)
Amounts
EXPENDITURES (Continued)
Transfers Out
(15,000)
(15,000)
(88)
14,912
Current: (Continued)
TOTAL OTHER FINANCING
Streets and Parks:
SOURCES (USES)
242,876
242,876
380,636
137,760
Streets
$ 963,157
$ 963,041
S 817,800
$ 145,241
$ 856,502
Parks
688,866
682,892
697,492
(14,600)
568,507
Swimming Pool
230,803
230,803
241,442
(10,639)
230,195
Total Streets and Parks
1,882,826
1,876,736
1,756,734
120,002
1,655,204
Health:
Animal Control
379,818
379,818
331,860
47,958
348,448
Total Health
379,818
379,818
331,860
47,958
348,448
Culture and Recreation:
Library
716,924
734,324
691,033
43,291
593,528
Civic Center
145,076
145,076
151,556
(6,480)
193,332
Senior Center
26,020
26,020
23,852
2,168
-
Total Culture and Recreation
888,020
905,420
866,441
38,979
786,860
Capital Outlay
519,518
451,403
602,398
(150,995)
2,436,546
Debt Service:
Principal
-
-
14,886
(14,886)
-
Interest and Fiscal Charges
-
-
1,311
(1,311)
-
TotalDebtService
-
-
16,197
(16,197)
-
TOTAL EXPENDITURES
18,125,150
18,048,717
17,648,658
400,059
18,586,300
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
(127,812)
(51,379)
(21,327)
30,052
(2,444,348)
OTHER FINANCING SOURCES (USES)
Proceeds from Issuance of Debt
-
-
148,294
148,294
-
Transfers In
257,876
257,876
232,430
(25,446)
567,951
Transfers Out
(15,000)
(15,000)
(88)
14,912
(1,150,035)
TOTAL OTHER FINANCING
SOURCES (USES)
242,876
242,876
380,636
137,760
(582,084)
NET CHANGE IN FUND BALANCE
115,064
191,497
359,309
167,812
(3,026,432)
FUND BALANCE - BEGINNING
2,027,593
2,027,593
2,027,593
-
5,054,025
FUND BALANCE - ENDING
$ 2,142,657
$ 21219,090
S 21386,902
$ 167,812
$ 2,027,593
53
CITY OF SCHERTZ, TEXAS
NOTES TO SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE — BUDGET AND ACTUAL
SEPTEMBER 30, 2010
Budgetary Information — The budget is prepared in accordance with accounting principles generally
accepted in the United States of America. The City maintains strict budgetary controls. The objective of
these controls is to ensure compliance with legal provision embodied in the annual appropriated budget
approved by the City Council and as such is a good management control device. Annual budgets are
adopted for the general fund; debt service fund; special revenue funds; hotel motel tax, park fund and the
recycling fund. There is no adopted budget for the police forfeiture fund, library grant fund, parks and
wildlife fund, and the historical committee fund. Project - length financial plans are adopted for capital
projects funds.
Budgetary preparation and control is exercised at the department level. Actual expenditures may not
legally exceed appropriations at the fund level. The City Manager may transfer budgeted amounts up to
$50,000 between and among departments within any fund without approval by City Council.
The City did not exceed the general fund budgeted expenditures during 2010.
Encumbrances represent commitments related to unperformed contracts for goods or services. Encumbrance
accounting, under which purchase orders, contracts and other commitments for the expenditure of resources
are recorded to reserve that portion of the applicable appropriation, is utilized in the governmental funds.
Encumbrances lapse at year -end and do not constitute expenditures or liabilities because the commitments
must be reappropriated and honored during the subsequent year.
54
CITY OF SCHERTZ, TEXAS
REQUIRED SUPPLEMENTARY INFORMATION
TEXAS MUNICIPAL RETIREMENT SYSTEM
ANALYSIS OF FUNDING PROGRESS
LAST SIX CALENDAR YEARS
*As of December 31 of the preceding year, the date of the actuarial valuation.
"Assets Assets are stated cost as of December 31 of the preceding year.
55
UNFUNDED
ACTUARIAL
ACCRUED
LIABILITY
UNFUNDED
ASA
ACTUARIAL
ACTUARIAL
FUNDING
ACTUARIAL
ANNUAL
PERCENTAGE
CALENDAR
VALUE OF
ACCRUED
RATIO
ACCRUED
COVERED
OF COVERED
YEAR
ASSETS"
LIABILITY*
(1)/(2)
LIABILITY
PAYROLL
PAYROLL
2004
$ 5,122,816
$ 7,950,619
64.4%
$ 2,827,803
$ 6,144,053
46.0%
2005
6,042,437
9,003,970
67.1%
2,961,533
7,662,928
38.6%
2006
7,290,175
11,798,002
61.8%
4,507,827
8,478,634
53.2%
2007
8,811,205
19,057,935
46.2%
10,246,730
10,047,726
102.0%
2008
11,216,663
22,068,312
50.8%
10,851,649
11,626,232
93.3%
2009
13,946,029
25,584,067
54.5%
11,638,038
12,321,349
94.5%
*As of December 31 of the preceding year, the date of the actuarial valuation.
"Assets Assets are stated cost as of December 31 of the preceding year.
55
OTHER SUPPLEMENTARY INFORMATION
56
CITY OF SCHERTZ, TEXAS
COMPARATIVE BALANCE SHEETS
GENERAL FUND
SEPTEMBER 30, 2010 AND 2009
LIABILITIES AND FUND BALANCE
Liabilities:
2010
2009
ASSETS
$ 984,372
$ 534,737
Cash and Cash Equivalents
$ 981,538
$ 846,717
Investments
2,097,587
1,568,165
Receivables:
234,504
244,662
Ad Valorem Taxes (Net of Allowance for
-
32,450
Uncollectibles of $6,925 and $7,842)
108,487
122,855
Sales Taxes
669,406
631,406
Franchise Taxes
369,021
344,857
Other (Net of Allowance for Uncollectibles
Reserved for:
of $2,318,291 and $2,036,909)
1,608,411
1,400,790
Due from Other Funds
15,977
2,742
Accrued Interest
2,316
5,569
Inventory
46,473
44,217
TOTAL ASSETS
S 5,8991216
$ 4,967,318
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts Payable
$ 984,372
$ 534,737
Accrued Liabilities
566,690
585,827
Customer Deposits
27,123
21,190
Due to Other Governments
234,504
244,662
Due to Other Funds
-
32,450
Unearned Revenue
1,699,625
1,520,859
Total Liabilities
3,512,314
2,939,725
Fund Balance:
Reserved for:
Inventory
46,473
44,217
LEOSE
12,353
11,832
Technology
269,739
236,842
Court Security
133,005
95,275
Writing Next Chapter
149,381
130,930
Unreserved:
Undesignated
1,775,951
1,508,497
Total Fund Balance
2,386,902
2,027,593
TOTAL LIABILITIES AND FUND BALANCE
$ 5,8992216
$ 4,967,318
57
CITY OF SCHERTZ, TEXAS
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
GENERAL FUND
FOR THE YEARS ENDED SEPTEMBER 30, 2010 AND 2009
EXPENDITURES
Current:
General Government
2010
2009
REVENUES
7,409,720
7,235,501
Property Taxes
$ 6,374,190
$ 5,689,992
Sales Taxes
4,160,495
4,011,855
Franchise Taxes
1,448,620
1,462,199
Beverage and Bingo Taxes
36,795
36,894
Permits and Fees
1,056,716
800,381
Service Fees
2,296,451
1,891,856
Fines and Fees
1,655,183
1,517,821
Intergovernmental
50,000
13,000
Investment Earnings
34,228
137,050
Miscellaneous
514,653
580,904
TOTAL REVENUES
17,627,331
16,141,952
EXPENDITURES
Current:
General Government
6,665,308
6,123,741
Public Safety
7,409,720
7,235,501
Streets and Parks
1,756,734
1,655,204
Health
331,860
348,448
Culture and Recreation
866,441
786,860
Capital Outlay
602,398
2,436,546
Debt Service:
Principal
14,886
-
Interest and Fiscal Charges
1,311
-
TOTAL EXPENDITURES
17,648,658
18,586,300
Excess (Deficiency) of Revenues
Over (Under) Expenditures
(21,327)
(2,444,348)
OTHER FINANCING SOURCES (USES)
Issuance of Debt 148,294 -
Transfers In 232,430 567,951
Transfers Out (88) (1,150,035)
TOTAL OTHER FINANCING
SOURCES (USES) 380,636 (582,084)
Net Change in Fund Balance 359,309 (3,026,432)
Fund Balance at Beginning of Year 2,027,593 5,054,025
Fund Balance at End of Year S 2,386,902 $ 2,027,593
58
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET TO ACTUAL
DEBT SERVICE FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2010
(WITH COMPARATIVE ACTUAL TOTALS FOR 2009)
REVENUES
Property Taxes
Intergovernmental
Investment Earnings
TOTAL REVENUES
EXPENDITURES
Debt Service:
Principal
Interest and Fiscal Charges
Bond Issue Costs
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF
REVENUES OVER (UNDER)
EXPENDITURES
OTHER FINANCING SOURCES
Transfers In
Issuance of Debt
TOTAL OTHER FINANCING
SOURCES
Net Change in Fund Balance
FUND BALANCE, BEGINNING
FUND BALANCE, ENDING
Variance with
2010 Final Budget- 2009
Budgeted Amounts Actual Positive Actual
Original Final Amounts (Negative) Amounts
$ 3,358,407 $ 3,358,407 $ 3,363,046 $ 4,639 $ 3,274,650
- - 372,480 372,480 485,767
24,700 24,700 3,364 (21,336) 11,337
3,383,107 3,383,107 3,738,890 355,783 3,771,754
1,462,934 1,462,934 1,753,200 (290,266) 4,696,928
2,104,308 2,104,308 2,143,844 (39,536) 1,950,358
- - - - 9,388
3,567,242 3,567,242 3,897,044 (329,802) 6,656,674
(184,135) (184,135) (158,154) 25,981 (2,884,920)
465,000 465,000
465,000 465,000
280,865 280,865 (158,154)
444,369 444,369 444,369
(465,000) -
- 2,900,000
(465,000) 2,900,000
(439,019) 15,080
- 429,289
$ 725,234 $ 725,234 1 $ 286,215 1 $ (439,019) $ 444,369
59
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
•1
I�[�]�1► /.�1�]�ZK�] %�1.�►1► I �1►� II.� A �I1�1 �3:
Nonmajor Governmental Funds (Special Revenue Funds) are used to account for the proceeds of specific
revenue sources that are legally restricted to expenditure for specified purposes.
Hotel Occut)ancy Fund - will account for proceeds of hotel occupancy taxes to be used strictly for those
kinds of programs that promote the tourism industry.
Park Fund - will account for revenues from developers' fees (in lieu of park land dedication), grants, and
donations and is designed to monitor and manage improvement of park system and tree mitigation.
Recycling Fund - will account for revenues received from the recycling fee on all residential water bills and
the sale of recyclable material used to buy down solid waste collection costs.
Police Forfeitures Fund - will account for revenue received from drug related cases in conjunction with other
law enforcement agencies.
Library Grant Fund - will account for funds from a state grant to be used for purchasing computers at the
library to be used for access to the internet.
Parks and Wildlife Fund - will account for funds received for the preservation of parks and wildlife.
Historical Committee Fund - will account for funds received for the preservation of the history of the city.
61
CITY OF SCHERTZ, TEXAS
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2010
ASSETS
Cash and Cash Equivalents
Investments
Accounts Receivable, Net of Allowance
Taxes
Due from Component Unit
Restricted Assets:
Cash and Cash Equivalents
Investments
TOTAL ASSETS
LIABILITIES AND FUND BALANCE
Liabilities
Withdrawals in Excess of Deposits
Accounts Payable
Due to Other Funds
Total Liabilities
Fund Balance
Reserved for:
Tree Mitigation
Unreserved:
Total Fund Balances
TOTAL LIABILITIES AND
FUND BALANCE
Special Revenue Funds
Hotel Police Library
Occupancy Park Recycling Forfeitures Grant
Fund Fund Fund Fund Fund
$ - $ 167,949 $ -
- 38,792 - - -
34,136 - - - -
20,000 - - - -
119,053 - - 130,380 3,903
78,002 192,189 - 278,532 -
$ 251,191 $ 398,930 $ - $ 408,912 $ 3,903
$ - $ - $ 58,366 $ - $ -
812 - - - -
- 10,021 - - -
812 10,021 58,366 - -
- 164,424 - - -
250,379 224,485 (58,366) 408,912 3,903
250,379 388,909 (58,366) 408,912 3,903
$ 251,191 $ 398,930 $ - $ 408,912 $ 3,903
62
Special Revenue Funds
Parks and Historical
Wildlife Committee
Fund Fund Totals
$ - $ 9,940 $ 177,889
- - 38,792
- - 34,136
- - 20,000
- - 253,336
- - 548,723
$ - $ 9,940 $ 1,072,876
$ 58,366
- - 812
- - 10,021
- - 69,199
- - 164,424
- 9,940 839,253
9,940 1,003,677
$ - $ 9,940 $ 1,072,876
63
CITY OF SCHERTZ, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2010
REVENUES
Occupancy Tax
Developer Fees
Tree Mitigation
Sale of Property Forfeitures
Sale of Merchandise
Operating Grants
Investment Earnings
Miscellaneous
TOTAL REVENUES
EXPENDITURES
Current:
General and Administrative
Contractual Services
Capital Outlay
TOTAL EXPENDITURES
Excess (Deficiency) of Revenues
Over (Under) Expenditures
OTHER FINANCING SOURCES (USES)
Transfers In
Transfers Out
TOTAL OTHER FINANCING
SOURCES (USES)
Net Change in Fund Balance
Fund Balances /Equity (Deficit), October I
Fund Balances /Equity (Deficit),
September 30
Special Revenue Funds
Hotel
Police
Library
Occupancy
Park Recycling
Forfeitures
Grant
Fund
Fund Fund
Fund
Fund
$ 348,147
$ - $ -
$ -
$ -
-
220,000 -
-
-
-
53,756 -
-
-
-
- -
100,173
-
-
- -
-
10,426
425
691 -
721
-
4,394
2,790 -
-
-
352,966 277,237 - 100,894 10,426
69,519 160,878 - 3,622 6,924
902 - 33,454 - -
- - - 31,979 -
70,421 160,878 33,454 35,601 6,924
282,545 116,359 (33,454) 65,293 3,502
(212,876) (14,154) - - -
(212,876) (14,154) - - -
69,669 102,205 (33,454) 65,293 3,502
180,710 286,704 (24,912) 343,619 401
$ 250,379 $ 388,909 $ (58,366) $ 408,912 $ 3,903
64
Special Revenue Funds
Parks and Historical
Wildlife Committee
Fund Fund
Totals
$ - $ -
$ 348,147
- -
220,000
- -
53,756
- -
100,173
- 1,126
1,126
- -
10,426
- -
1,837
- -
7,184
- 1,126 742,649
- 1,335 242,278
- - 34,356
-_ - 31,979
1,335 308,613
- (209) 434,036
10,021 - 10,021
- - (227,030)
10,021 - (217,009)
10,021 (209) 217,027
(10,021) 10,149 786,650
$ - $ 9,940 $ 1,003,677
65
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET TO ACTUAL
HOTEL OCCUPANCY FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2010
(WITH COMPARATIVE ACTUAL TOTALS FOR 2009)
REVENUES
Occupancy Tax
Investment Earnings
Miscellaneous
TOTAL REVENUES
EXPENDITURES
Current:
General and Administrative
Contractual Services
Capital Outlay
TOTAL EXPENDITURES
Excess (Deficiency) of Revenues
Over (Under) Expenses
OTHER FINANCING SOURCES
(USES)
Transfers Out
TOTAL OTHER FINANCING
SOURCES (USES)
Net Change in Fund Balance
FUND BALANCE, BEGINNING
FUND BALANCE, ENDING
154,943 69,519 85,424 18,637
2,500 902 1,598 75,444
- - - 46,754
157,443 70,421 87,022 140,835
260,367 282,545 22,178 166,824
(212,876) (212,876) - (488,997)
(212,876) (212,876) - (488,997)
47,491 69,669 22,178 (322,173)
180,710 180,710 - 502,883
$ 228,201 $ 250,379 $ 22,178 $ 180,710
e
Variance with
Original and
2010
Final Budget-
2009
Final
Actual
Positive
Actual
Budget
Amounts
(Negative)
Amounts
$ 413,910
$ 348,147
$ (65,763)
$ 305,073
3,900
425
(3,475)
2,586
-
4,394
4,394
-
417,810
352,966
(64,844)
307,659
154,943 69,519 85,424 18,637
2,500 902 1,598 75,444
- - - 46,754
157,443 70,421 87,022 140,835
260,367 282,545 22,178 166,824
(212,876) (212,876) - (488,997)
(212,876) (212,876) - (488,997)
47,491 69,669 22,178 (322,173)
180,710 180,710 - 502,883
$ 228,201 $ 250,379 $ 22,178 $ 180,710
e
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET TO ACTUAL
PARK FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2010
(WITH COMPARATIVE ACTUAL TOTALS FOR 2009)
OTHER FINANCING SOURCES
(USES)
Transfers Out - (14,154) (14,154) -
TOTAL OTHER FINANCING
SOURCES (USES) - (14,154) (14,154) -
Net Change in Fund Balance
5,600
102,205 96,605
Variance with
FUND BALANCE, BEGINNING
286,704
Original and
2010
Final Budget-
2009
$ 292,304
Final
Actual
Positive
Actual
Budget
Amounts
(Negative)
Amounts
REVENUES
Developer Fees
$ 5,000
$ 220,000
$ 215,000
$ 2,402
Tree Mitigation
30,000
53,756
23,756
19,322
Investment Earnings
4,100
691
(3,409)
3,537
Miscellaneous
-
2,790
2,790
55
TOTAL REVENUES
39,100
277,237
238,137
25,316
EXPENDITURES
Current:
General and Administrative
33,500
160,878
(127,378)
130,655
Capital Outlay
-
-
-
48,557
TOTAL EXPENDITURES
33,500
160,878
(127,378)
179,212
OTHER FINANCING SOURCES
(USES)
Transfers Out - (14,154) (14,154) -
TOTAL OTHER FINANCING
SOURCES (USES) - (14,154) (14,154) -
Net Change in Fund Balance
5,600
102,205 96,605
(153,896)
FUND BALANCE, BEGINNING
286,704
286,704 -
440,600
FUND BALANCE, ENDING
$ 292,304
$ 388,909 $ 96,605
$ 286,704
67
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET TO ACTUAL
RECYCLING FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2010
(WITH COMPARATIVE ACTUAL TOTALS FOR 2009)
EXPENDITURES
Current:
Contractual Services 46,000 33,454 12,546 45,472
TOTAL EXPENDITURES 46,000 33,454 12,546 45,472
Net Change in Fund Balance - (33,454) (33,454) (39,660)
FUND BALANCE (DEFICIT), BEGINNING (24,912) (24,912) - 14,748
FUND BALANCE (DEFICIT), ENDING $ (24,912) $ (58,366) $ (33,454) $ (24,912)
68
Variance with
Original and 2010
Final Budget-
2009
Final Actual
Positive
Actual
Budget Amounts
(Negative)
Amounts
REVENUES
Sale of Recycling Materials $ 46,000 $ -
$ (46,000)
$ 5,812
TOTAL REVENUES 46,000 -
(46,000)
5,812
EXPENDITURES
Current:
Contractual Services 46,000 33,454 12,546 45,472
TOTAL EXPENDITURES 46,000 33,454 12,546 45,472
Net Change in Fund Balance - (33,454) (33,454) (39,660)
FUND BALANCE (DEFICIT), BEGINNING (24,912) (24,912) - 14,748
FUND BALANCE (DEFICIT), ENDING $ (24,912) $ (58,366) $ (33,454) $ (24,912)
68
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET TO ACTUAL
POLICE FORFEITURES FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2010
(WITH COMPARATIVE ACTUAL TOTALS FOR 2009)
OTHER FINANCING SOURCES
(USES)
Transfers Out - - - (78,954)
TOTAL OTHER FINANCING
SOURCES (USES) - - - (78,954)
Net Change in Fund Balance - 65,293 65,293 (39,485)
FUND BALANCE, BEGINNING 343,619 343,619 - 383,104
FUND BALANCE, ENDING $ 343,619 $ 408,912 $ 65,293 $ 343,619
.•
Variance with
Original and 2010
Final Budget-
2009
Final Actual
Positive
Actual
Budget Amounts
(Negative)
Amounts
REVENUES
Sale of Property Forfeitures
$ - $ 100,173
$ 100,173
$ 104,741
Investment Earnings
- 721
721
2,806
TOTAL REVENUES
- 100,894
100,894
107,547
EXPENDITURES
General and Administrative
- 3,622
(3,622)
20,631
Capital Outlay
- 31,979
(31,979)
47,447
TOTAL EXPENDITURES
- 35,601
(35,601)
68,078
OTHER FINANCING SOURCES
(USES)
Transfers Out - - - (78,954)
TOTAL OTHER FINANCING
SOURCES (USES) - - - (78,954)
Net Change in Fund Balance - 65,293 65,293 (39,485)
FUND BALANCE, BEGINNING 343,619 343,619 - 383,104
FUND BALANCE, ENDING $ 343,619 $ 408,912 $ 65,293 $ 343,619
.•
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET TO ACTUAL
LIBRARY GRANT FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2010
(WITH COMPARATIVE ACTUAL TOTALS FOR 2009)
REVENUES
Operating Grants
TOTAL REVENUES
EXPENDITURES
Current:
General and Administrative
TOTAL EXPENDITURES
Net Change in Fund Balance
FUND BALANCE, BEGINNING
FUND BALANCE, ENDING
- 6,924 (6,924) 21,891
- 6,924 (6,924) 21,891
- 3,502 3,502 (13,903)
401 401 - 14,304
$ 401 $ 37903 $ 3,502 $ 401
70
Variance with
Original and 2010
Final Budget-
2009
Final Actual
Positive
Actual
Budget Amounts
(Negative)
Amounts
$ - $ 10,426
$ 10,426
$ 7,988
- 10,426
10,426
7,988
- 6,924 (6,924) 21,891
- 6,924 (6,924) 21,891
- 3,502 3,502 (13,903)
401 401 - 14,304
$ 401 $ 37903 $ 3,502 $ 401
70
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET TO ACTUAL
PARKS AND WILDLIFE FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2010
(WITH COMPARATIVE ACTUAL TOTALS FOR 2009)
REVENUES
Operating Grants
TOTAL REVENUES
EXPENDITURES
Capital Outlay
TOTAL EXPENDITURES
OTHER FINANCING SOURCES
(USES)
Transfers In
TOTAL OTHER FINANCING
SOURCES (USES)
Net Change in Fund Balance
FUND BALANCE (DEFICIT), BEGINNING
FUND BALANCE (DEFICIT), ENDING
2009
Actual
-_ $ 35,749
35,749
45,770
- 45,770
- 10,021 10,021 -
- 10,021 10,021 -
- 10,021 - (10,021)
(10,021) (10,021) - -
$ (10,021) $ - $ - $ (10,021)
71
Variance with
Original and
2010 Final Budget -
Final
Actual Positive
Budget
Amounts (Negative)
2009
Actual
-_ $ 35,749
35,749
45,770
- 45,770
- 10,021 10,021 -
- 10,021 10,021 -
- 10,021 - (10,021)
(10,021) (10,021) - -
$ (10,021) $ - $ - $ (10,021)
71
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET TO ACTUAL
HISTORICAL COMMITTEE FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2010
(WITH COMPARATIVE ACTUAL TOTALS FOR 2009)
EXPENDITURES
General and Administrative
12,650
Variance with
11,315
Original and
2010
Final Budget-
2009
Final
Actual
Positive
Actual
Budget
Amounts
(Negative)
Amounts
REVENUES
(USES)
Sale of Merchandise $ -
$ 1,126
$ 1,126
$ 7,035
TOTAL REVENUES -
1,126
1,126
7,035
EXPENDITURES
General and Administrative
12,650
1,335
11,315
6,886
TOTAL EXPENDITURES
12,650
1,335
11,315
6,886
OTHER FINANCING SOURCES
(USES)
Transfers In
15,000
-
(15,000)
10,000
TOTAL OTHER FINANCING
SOURCES (USES)
15,000
-
(15,000)
10,000
Net Change in Fund Balance
2,350
(209)
(2,559)
10,149
FUND BALANCE, BEGINNING
10,149
10,149
-
-
FUND BALANCE, ENDING
$ 12,499
$ 9,940
$ (2,559)
$ 10,149
72
iv
5;
El
"CITp'
!V
DISCRETELY PRESENTED COMPONENT UNITS
Discretely presented component units consist of separate entities whose governing bodies are not
substantively the same as the governing body of the primary government. The discretely presented
component units also provide services to areas other than the primary government.
73
CITY OF SCHERTZ, TEXAS
COMBINING BALANCE SHEET
DISCRETELY PRESENTED COMPONENT UNITS
SEPTEMBER 30, 2010
ASSETS
Cash and Cash Equivalents
Investments
Accounts Receivable - Sales Tax
Accounts Receivable - Other
Note Receivable
Accrued Interest Receivable
Due from Primary Government
TOTAL ASSETS
LIABILITIES AND FUND BALANCE
Liabilities
Accounts Payable
Accrued Liabilities
Due to Primary Government
Total Liabilities
Fund Balance
Reserved for Note Receivable
Unreserved
Total Fund Balances
TOTAL LIABILITIES
AND FUND BALANCE
Total Fund Balances
Amounts reported in the statement of net assets
are different because:
Deferred charges, consisting of debt issue costs, are
amortized over the life of the bond in the governmental
activities, but were recognized in full in the governmental
funds:
Schertz
The
Economic
Library
Development
Advisory
Corporation
Board
Parks and
Recreation
Foundation Total
$ 613,811 $
16,672 $ 45,107 $ 675,590
2,557,983
30,620 - 2,588,603
334,703
- - 334,703
138
- - 138
150,000
- - 150,000
3,294
- - 3,294
246,742
- - 246,742
$ 3,906,671 $
47,292 $ 45,107 $ 3,999,070
$ 200,852 $ 217 $ - $ 201,069
7,752 - - 7,752
- - 20,000 20,000
208,604 217 20,000 228,821
150,000 - - 150,000
3,548,067 47,075 25,107 3,620,249
3,698,067 47,075 25,107 3,770,249
$ 3,906,671 $ 47,292 $ 45,107 $ 3,999,070
$ 3,698,067 $ 47,075 $ 25,107 $ 3,770,249
25,757 - - 25,757
Long -term liabilities (including employee compensated
absences) are not payable in the current period and,
therefore, are deferred in the funds (2,123,789) - - (2,123,789)
Total Net Assets $ 1,600,035 $ 47,075 $ 25,107 $ 1,672,217
Net Assets are presented on pages 14 -15.
74
CITY OF SCHERTZ, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
DISCRETELY PRESENTED COMPONENT UNITS
FOR THE YEAR ENDED SEPTEMBER 30, 2010
REVENUES
Sales Taxes
Operating Grants and Contributions
Charges for Services
Investment Earnings
Miscellaneous Income
TOTAL REVENUES
EXPENDITURES
Current:
Administrative
Culture and Recreation
Economic Development
Debt Service:
Principal
Interest and Fiscal Charges
Bond Issue Costs
TOTAL EXPENDITURES
Excess (Deficiency) of Revenues
Over (Under) Expenditures
OTHER FINANCING SOURCES (USES)
Proceeds from Issuance of Debt
TOTAL OTHER FINANCING
SOURCES (USES)
NET CHANGE IN FUND BALANCE
FUND BALANCE, BEGINNING
FUND BALANCE, ENDING
Schertz
The
Economic
Library
Parks and
Development
Advisory
Recreation
Corporation
Board
Foundation
Total
$ 2,080,254
$ -
$ -
$ 2,080,254
-
925
35,194
36,119
-
19,946
202,484
222,430
25,381
101
86
25,568
158,317
-
372
158,689
2,263,952
20,972
238,136
2,523,060
476,205
-
-
476,205
-
6,227
238,660
244,887
1,718,993
-
-
1,718,993
125,000
-
-
125,000
38,697
-
-
38,697
20,000
-
-
20,000
2,378,895
6,227
238,660
2,623,782
(114,943)
14,745
(524)
(100,722)
1,270,000
-
-
1,270,000
1,270,000
-
-
1,270,000
1,155,057
14,745
(524)
1,169,278
2,543,010
32,330
25,631
2,600,971
$ 3,698,067
$ 47,075
$ 25,107
$ 3,770,249
75
CITY OF SCHERTZ, TEXAS
COMBINING STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
DISCRETELY PRESENTED COMPONENT UNITS (CONTINUED)
FOR THE YEAR ENDED SEPTEMBER 30, 2010
Net Change in Fund Balance
Amounts reported in the statement of activities are
different because:
The issuance of long -term debt provides current
financial resouces to governmental funds, which the
repayment of the principal of long -term debt consumes
the current financial resources of governmental
funds. Neither transaction, however has any affect
on net assets. This amount is the net effect of these
differences in the treatment of long -term debt and
related items.
Issuance of Bonds
Deferred Charge on Issuance Cost
Principal Repayments
Amortization of Bond Issue Costs
Some expenses reported in the Statement of Activities
do not require the use of current financial resources
and, therefore, are not reported as expenditures in
the funds (Accrued Compensated Absences)
Change in Net Assets
Change in Net Assets is presented on pages 16 -17.
Schertz
The
Economic
Library
Parks and
Development
Advisory
Recreation
Corporation
Board
Foundation Total
$ 1,155,057
$ 14,745
$ (524) $ 1,169,278
(1,270,000)
20,000
125,000
(2,167)
(2,604)
- - (1,270,000)
- - 20,000
- - 125,000
- - (2,167)
- (2,604)
$ 25286 $ 14,745 $ (5241 $ 39,507
76
iv
5;
El
"CITp'
!V
STATISTICAL SECTION
This part of the City of Schertz's annual financial report presents detailed information as a context for
understanding what the information in the financial statements, note disclosures, and required supplementary
information says about the City's overall financial health.
Financial Trends (Tables I through 4)
Net Assets by Component
Change in Net Assets
Fund Balances, Governmental Funds
Changes in Fund Balances, Governmental Funds
These schedules contain trend information to help reader understand how the City's financial
performance and well -being have changed over time.
Revenue Capacity (Tables S through 12)
Tax Revenues by Source, Governmental Funds
Total Water and Sewer Consumption and Rates
Principal Water and Sewer Consumers
Assessed Value and Estimated Actual Value of Taxable Property
Direct and Overlapping Property Tax Rates
Principal Property Taxpayers
Property Tax Levies and Collections
Taxable Assessed Value
These schedules contain information to help readers assess the factors affecting the City's ability to generate its property a;
Debt Capacity (Tables 13 through 17)
Ratios of Outstanding Debt by Type
Ratios of General Bonded Debt Outstanding
Direct and Overlapping Governmental Activities Debt
Debt Margin Information
Pledged Revenue Coverage
These schedules present information to help the reader assess the affordability of the City's current
levels of outstanding debt and the City's ability to issue additional debt in the future.
Demographic and Economic Information (Tables 18 through 19)
Demographic and Economic Statistics
Principal Employers
These schedules offer demographic and economic indicators to help the reader understand how the
City's financial activities take place and to help make comparisons over time and with other
governments.
Operatinglnformation (Tables 20 through 22)
Full -time Equivalent City Government Employees by Function
Operating Indicators by Function /Program
Capital Asset Statistics by Function /Program
These schedules contain information about the City's operations and resources to help the reader
understand how the City's financial information relates to the services the City provides and the
activities itperforms.
77
CITY OF SCHERTZ, TEXAS
NET ASSETS, BY COMPONENT
LAST EIGHT FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Governmental Activities
Invested in Capital Assets,
Net of Related Debt
Restricted
Unrestricted
Total Governmental Activities
Net Assets
Business -Type Activities
Invested in Capital Assets,
Net of Related Debt
Restricted
Unrestricted
Total Business -Type Activities
Net Assets
Primary Government
Invested in Capital Assets,
Net of Related Debt
Restricted
Unrestricted
Total Primary Government Net Assets
Fiscal Year
2003 2004 2005 2006
$ 11,380,173 $ 16,228,134 $ 17,699,797 $ 13,257,031
491,313 7,037,607 4,813,496 15,888,549
7,448,061 985,750 6,957,173 8,759,630
$ 19.319.547 $ 24251.491 $ 29.470.466 $ 37.905210
$ 21,806,626 $ 22,901,982 $ 24,970,976 $ 24,783,839
1,384,083 1,010,662 428,712 1,253,711
5,294,283 3,988,006 5,377,968 9,879,126
$ 28.484.992 $ 27.900.650 $ 30.777.656 $ 35.916.676
$ 33,186,799 $ 39,130,116 $ 42,670,773 $ 38,040,870
1,875,396 8,048,269 5,242,208 17,142,260
12,742,344 4,973,756 12,335,141 18,638,756
$ 47.804.539 $ 52.152.141 $ 60248.122 1 $ 73.821.886
NOTE: Financial data prior to fiscal year 2003 was not available.
78
Fiscal Year
TABLE 1
2007 2008 2009 2010
$ 32,932,355 $ 44,206,232 $ 57,324,482 $ 54,010,139
663,973 1,058,514 1,170,786 1,067,599
12,720,293 9,092,711 2,017,577 5,867,785
$ 46.316.621 $ 54.357.457 $ 60.512.845 $ 60.945.523
$ 18,788,933 $ 41,350,184 $ 50,047,301 $ 50,778,490
1,995,213 - - -
23,658,181 10,286,447 3,633,244 4,325,427
$ 44.442.327 $ 51.636.631 $ 53.680.545 $ 55.103.917
$ 51,721,288 $ 85,556,416 $ 107,371,783 $ 104,788,629
2,659,186 1,058,514 1,170,786 1,067,599
36,378,474 19,379,158 5,650,821 10,193,212
$ 90.758.948 $ 105.994.088 $ 114.193.390 $ 116.049.440
79
CITY OF SCHERTZ, TEXAS
CHANGE IN NET ASSETS
LAST EIGHT FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Fiscal Year
2003 2004 2005 2006
Expenses
Governmental Activities
General Government $ 2,630,450
Public Safety 3,705,722
Streets and Parks 1,182,993
Health 156,927
Culture and Recreation 451,215
Interest and Other Fees 499,011
Total Governmental Activities Expenses 8,626,318
Business -Type Activities
$ 2,873,573
4,586,498
1,019,101
192,506
310,013
707,090
9,688,781
$ 3,612,084
5,558,596
1,134,281
221,950
339,124
862,744
11,728,779
$ 3,957,693
6,403,122
1,240,956
231,149
396,078
823,818
13,052,816
Water and Sewer
8,300,590
8,302,505
8,937,553
9,821,823
EMS
2,248,651
2,509,858
3,789,791
3,474,249
Total Business -Type Activities
10,549,241
10,812,363
12,727,344
13,296,072
Total Primary Government Expenses
$ 19.175.559
$ 20.501.144
$ 24.456.123
$ 26.348.888
Program Revenues
Governmental Activities
Charges for Service:
General Government
Public Safety
Streets and Parks
Health
Culture and Recreation
Operating Grants and Contributions
Capital Grants and Contributions
Total Governmental Aactivities
Program Revenues
Business -Type Activities
Charges for Service:
Water and Sewer
EMS
Capital Grants and Contributions
Total Business -Type Activities
Program Revenues
Total Primary Government
Program Revenues
$ 1,461,361 $ 1,381,802
1,033,713
1,118,241
34,248
203,579
117,983
36,095
155,644
180,707
2,788,821
2,280,629
-
2,153,213
$ 1,575,236
1,475,618
141,523
44,611
146,429
1,789,763
3,808,133
$ 1,310,142
1,684,786
143,254
44,178
149,225
1,567,164
5,382,779
5,591,770
7,354,266
8,981,313
10,281,528
8,135,299
7,534,841
9,308,362
11,223,658
2,014,126
1,723,611
3,443,429
3,904,818
279,913
1,045,334
2,055,366
3,148,100
10,429,338
$ 16.021.108
10,303,786
$ 17.658.052
NOTE: Financial data prior to fiscal year 2003 was not available.
80
14,807,157
$ 23.788.470
18,276,576
$ 28.558.104
Fiscal Year
TABLE 2
2007 2008 2009 2010
$ 5,603,855
$ 7,305,112
$ 7,695,768
$ 7,996,952
5,920,046
7,093,301
7,697,131
7,829,350
2,702,102
3,177,145
3,815,342
4,113,949
272,730
306,764
360,604
344,588
450,974
681,440
800,305
897,946
1,412,066
1,982,984
1,780,791
2,188,588
16,361,773
20,546,746
22,149,941
23,371,373
10,995,554
13,424,086
11,503,692
9,502,039
12,379,584
13,568,065
14,434,709
5,114,911
2,976,112
3,365,544
3,581,678
14,616,950
15,355,696
16,933,609
18,016,387
$ 30.978.723
$ 35.902.442
$ 39.083.550
$ 41.387.760
$ 3,123,184
$ 1,968,046
$ 2,045,321
$ 2,608,285
1,307,295
1,760,063
2,026,108
2,159,182
196,436
170,872
213,758
511,641
33,148
37,096
28,875
29,636
201,779
210,311
207,643
246,894
493,281
526,839
797,659
534,267
5,640,431
8,750,859
6,184,328
1,248,646
10,995,554
13,424,086
11,503,692
7,338,551
13,007,618 13,620,440 14,668,137 15,147,332
5,017,343 3,150,428 2,889,518 3,061,414
2,755,376 5,190,039 2,241,726 973,437
20,780,337 21,960,907 19,799,381 19,182,183
$ 31.775.891 $ 35.384.993 $ 31.303.073 $ 26.520.734
81
CITY OF SCHERTZ, TEXAS
CHANGE IN NET ASSETS (CONTINUED)
LAST EIGHT FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Fiscal Year
2003 2004 2005 2006
Net (Expenses) Revenue
Governmental Activities $ (3,034,548) $ (2,334,515) $ (2,747,466) $ (2,771,288)
Business -Type Activities (119,903) (508,577) 2,079,813 4,980,504
Total Primary Government Net Expenses $ (3.154.451) $ (2.843.0921 $ (667.6531 $ 2,209,216
Governmental Revenues and Other
Changes in Net Assets
Governmental Activities
Taxes:
Ad Valorem
Sales
Franchise Fees
Hotel /Motel
Mixed Drink
Bingo
Unrestricted Investment Earnings
Gain Sale of Capital Asset
Miscellaneous
Transfers
Total Governmental Activities
Business -Type Activities
Interest and Investment Earnings
Gain Sale of Capital Asset
Miscellaneous
Transfers
Total Business -Type Activities
Total Primary Government
Changes In Net Assets
Government Activities
Business -Type Activities
Total Primary Government
$ 3,984,262
$ 4,410,567
$ 4,908,108
$ 5,705,805
2,035,655
1,703,994
2,227,282
3,136,970
671,009
659,847
786,298
961,462
43,177
37,688
42,982
202,108
4,243
5,064
6,437
20,068
4,528
4,749
4,946
5,124
93,690
114,323
356,080
552,091
16,028
58,770
83,337
112,306
410,802
584,733
199,123
510,098
7,263,394
7,579,735
8,614,593
11,206,032
94,731
158,372
(410,802)
(157,699)
$ 7.105.695
$ 4,228,846
(277,602)
_$_3,951,244
61,025
327,900
120,043
(584,733)
(75,765)
$ 7.503.970
$ 5,245,220
(584,342)
$ 4.660.878
NOTE: Financial data prior to fiscal year 2003 was not available.
82
170,610
177,554
(199,123)
149,041
$ 8.763.634
$ 5,867,127
2,228,854
$ 8.095.981
473,205
195,409
(510,098)
158,516
$ 11.364.548
$ 8,434,744
5,139,020
$ 13.573.764
Fiscal Year
TABLE 2 (Continued)
2007 2008 2009 2010
$ (5,366,219)
$ (7,122,660)
$(10,646,249)
$(16,032,822)
6,163,387
6,605,211
2,865,772
1,165,796
$ 797.168
$ (517.4491
$ (7.780.4771
$04.867.0261
$ 7,309,127
$ 7,841,928
$ 8,980,102
$ 9,715,645
4,016,381
4,117,173
4,011,855
4,160,495
1,004,116
1,240,642
1,462,199
1,448,620
259,176
273,558
305,073
348,147
29,451
32,364
31,790
32,144
6,781
4,751
5,105
4,651
1,453,645
1,310,310
339,403
92,208
-
23,706
17,714
20,910
923,574
319,064
587,789
627,259
(1,224,621)
-
1,060,607
15,421
13,777,630
15,163,496
16,801,637
16,465,500
976,595
409,972
128,233
36,824
-
57,527
(94,978)
-
161,048
121,594
205,494
236,173
1,224,621
-
(1,060,607)
(15,421)
2,362,264
589,093
(821,858)
257,576
$ 16.139.894
$ 15.752.589
-L i5
$ 16.723.076
$ 8,411,411
$ 8,040,836
$ 6,155,388
$ 432,678
8,525,651
7,194,304
2,043,914
1,423,372
$ 16.937.062
$ 15235.140
$ 8.199.302
$ 1.856.050
83
GENERAL FUND
Reserved
Unreserved
CITY OF SCHERTZ, TEXAS
FUND BALANCES - GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Fiscal Year
2001 2002 2003 2004
$ 163,210 $ 122,355 $ - $ 65,551
3,260,866 2,863,146 5,499,836 4,319,428
TOTAL GENERAL FUND $
3,424,076
$ 2,985,501
$ 5,499,836
$ 4,384,979
ALL OTHER GOVERNMENTAL FUNDS
Reserved $
156,200
$ 299,074
$ 491,313
$ 414,357
Unreserved, Reported In:
Special Revenue Funds
886,961
740,647
665,281
794,729
Capital Project Funds
4,632,762
1,939,678
1,212,118
8,792,947
Total All Other Governmental Funds $
5,675,923
$ 2,979,399
$ 2,368,712
$ 10,002,033
84
TABLE 3
Fiscal Year
2005 2006 2007 2008 2009 2010
$
10,571
$ 232,555
$ 269,806
$ 326,993
$ 519,096
$
610,951
4,864,647
7,202,709
9,583,890
4,727,032
1,508,497
1,775,951
$
4,875,218
$ 7,435,264
$ 9,853,696
$ 5,054,025
$ 2,027,593
$
2,386,902
$
590,007
$ 690,830
$ 556,884
$ 700,360
$ 636,203
$
450,639
660,151
871,305
1,276,891
1,084,568
594,816
839,253
5,135,834
15,134,814
17,612,092
17,448,323
14,342,553
3,734,301
$
6,385,992
$ 16,696,949
$ 19,445,867
$ 19,233,251
$ 15,573,572
$
5,024,193
85
CITY OF SCHERTZ, TEXAS
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
REVENUES
Taxes
Permits and Fees
Service Fees
Fines and Fees
Intergovernmental
Other Revenue
TOTAL REVENUES
EXPENDITURES
General Government
Public Safety
Streets and Parks
Health
Culture and Recreation
Management Services
Capital Outlay
Debt Service:
Principal
Interest and Fiscal Charges
TOTAL EXPENDITURES
Excess (Deficiency) of Revenues
Over (Under) Expenditures
OTHER FINANCING
SOURCES (USES)
Bonds Issued
Premium on Bond Issue
Discount on Bond Issue
Tax Notes Issued
Capital Lease
Bond Issue Costs
Transfers In
Transfers (Out)
TOTAL OTHER FINANCING
SOURCES (USES)
NET CHANGE IN FUND BALANCE
Debt Service as a percentage of
Noncapital Expenditures
Fiscal Year
2001 2002 2003 2004
$ 4,452,964
$ 5,305,902
$ 6,747,330
$ 7,322,727
620,652
663,682
941,515
852,577
659,145
883,126
944,506
793,096
749,201
538,831
646,613
842,322
186,382
45,362
2,003,743
1,710,277
368,260
877,544
287,865
490,266
7,036,604
8,314,447
11,571,572
12,011,265
1,792,396
2,735,142
2,554,675
2,772,024
2,561,055
2,963,924
3,530,470
3,833,243
627,110
689,150
675,687
942,942
175,048
120,530
156,927
181,074
270,437
328,404
415,834
298,179
98,683
-
-
-
1,688,451
4,079,385
4,767,695
3,827,879
257,410
937,000
783,000
1,233,000
280,774
511,811
508,166
609,522
7,751,364
12,365,346
13,392,454
13,697,863
(714,760) (4,050,899) (1,820,882) (1,686,598)
4,500,000 - 3,360,000 7,750,000
- - - (17,869)
- 400,000 - -
- - (46,272) (111,802)
388,542 551,720 467,502 2,275,896
- (31,156) (56,700) (1,691,163)
4,888,542 920,564 3,724,530 8,205,062
$ 4.173.782 $ (3.130.3351 $ 1.903.648 $ 6.518.464
::
8.9% 17.5% 14.9% 18.5%
TABLE 4
Fiscal Year
2005 2006 2007 2008 2009 2010
$ 8,569,435
$ 10,587,264
$ 13,083,505
$ 13,524,472
$ 14,780,663
$ 15,731,293
1,421,575
1,475,619
1,062,054
992,953
822,105
1,330,472
872,286
1,820,940
1,807,098
1,592,072
1,904,703
2,297,577
915,704
1,157,480
1,397,101
1,387,677
1,517,821
1,655,183
956,791
19,278
153,349
526,839
797,659
534,267
659,430
710,580
2,460,832
1,752,254
1,025,103
975,925
13,395,221
15,771,161
19,963,939
19,776,267
20,848,054
22,524,717
3,471,560
3,817,778
5,389,340
11,607,551
6,448,135
7,072,608
4,542,384
5,020,684
5,665,671
6,638,352
7,235,501
7,409,720
1,043,501
1,162,541
1,392,923
1,545,386
1,655,204
1,756,734
208,499
216,655
263,918
295,156
348,448
331,860
325,498
384,127
439,767
667,995
786,860
866,441
4,360,483
6,127,735
5,504,679
10,281,603
14,963,950
11,527,898
1,236,000
1,155,000
1,458,000
1,910,043
4,696,928
1,768,086
884,069
803,664
1,377,961
1,620,178
1,950,358
2,145,155
16,071,994
18,688,184
21,492,259
34,566,264
38,085,384
32,878,502
(2,676,773) (2,917,023) (1,528,320) (14,789,997) (17,237,330) (10,353,785)
- 15,000,000 8,076,733 9,900,000 9,681,678 -
- 123,057 - - - -
- 319,996 (104,142) - - 148,294
- (165,125) (52,300) (122,290) (191,066) -
583,126 529,598 354,150 593,294 2,778,593 242,539
(384,003) (19,500) (1,578,771) (593,294) (1,717,986) (227,118)
199,123 15,788,026 6,695,670 9,777,710 10,551,219 163,715
$ (2.477.6501 $ 12.871.003 $ 5.167.350 $ (5.0122871 $ (6.686.1111 $(10.190.070)
18.1% 15.4% 18.2% 14.0% 27.9% 18.3%
87
CITY OF SCHERTZ, TEXAS
TAX REVENUE BY SOURCE — GOVERNMENTAL FUNDS
LAST EIGHT FISCAL YEARS
TABLE 5
Fiscal
Mixed
Hotel
Total
Year
Property
Sales & Use
Franchise
Beverage
Bingo
Occupancy
Revenue
2010
$ 9,737,236
$ 4,160,495
$1,448,620
$ 32,144
$ 4,651
$ 348,147
$ 15,731,293
2009
8,964,642
4,011,855
1,462,199
31,790
5,105
305,073
14,780,664
2008
7,855,984
4,117,173
1,240,642
32,364
4,751
273,558
13,524,472
2007
7,767,600
4,016,381
1,004,116
29,451
6,781
259,176
13,083,505
2006
6,261,532
3,136,970
961,462
20,068
5,124
202,108
10,587,264
2005
5,501,490
2,227,282
786,298
6,437
4,946
42,982
8,569,435
2004
4,911,385
1,703,994
659,847
5,064
4,749
37,688
7,322,727
2003
3,988,718
2,035,655
671,009
4,243
4,528
43,177
6,747,330
*Property tax is the largest revenue source of the City.
NOTE: Financial data prior to fiscal year 2003 was not available.
88
CITY OF SCHERTZ, TEXAS
TOTAL WATER AND SEWER CONSUMPTION AND RATES
LAST TEN FISCAL YEARS
(UNAUDITED)
Fiscal
Year
Ended
September 30,
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
Total Water &
Sewer Consumption
(In Gallons)
12,313,766
15,115,679
8,557,792
6,145,081
7,142,304
5,287,665
4,894,003
4,941,716
3,774,089
3,234,262
89
Water &
Sewer
Base Rate
$ 18.94
18.94
15.94
15.94
15.94
15.94
13.70
13.70
11.70
7.70
TABLE 6
Water & Sewer
Rate Per
1,000 Gallons
$ 2.25
2.16
1.92
1.72
1.69
1.52
1.47
1.47
1.40
1.25
CITY OF SCHERTZ, TEXAS
PRINCIPAL WATER AND SEWER CONSUMERS
CURRENT YEAR AND NINE YEARS AGO
(UNAUDITED)
W
TABLE 7
2010
2001
Total
Percentage of
Total
Percentage of
Water
Total City
Water
Total City
Consumption
Water
Consumption
Water
TAXPAYERS
(In Hundreds)
Rank
Consumption
(In Hundreds)
Rank
Consumption
AOH- Vantage at Schertz, LLC
123,050
1
1.00%
-
Beck Readymix
78,796
2
0.64%
103,968
2
3.21%
Wal -Mart Supercenters
73,687
3
0.60%
-
Tri- County 35 Business Park
67,016
4
0.54%
-
Pecan Grove Investments
53,211
5
0.43%
-
Val Verde Apartments
47,937
6
0.39%
26,541
10
0.82%
Lennar/Newmark
46,749
7
0.38%
-
Legacy Oaks Apartments
42,288
8
0.34%
-
Sycamore Creek Apartment
39,791
9
0.32%
-
Landscape of Texas
37,914
10
0.31%
53,098
6
1.64%
Samuel Clemens High School
-
126,002
1
3.90%
Glenn Fey
-
100,917
3
3.12%
Greenshire HOA
-
100,010
4
3.09%
Lally, Garry & Debra
-
98,673
5
3.05%
Sebastian Apartments
-
52,031
7
1.61%
Prologis Trust
-
47,931
8
1.48%
Riedel's Apartments
-
29,159
9
0.90%
TOTAL
610,439
4.96%
738,330
22.83%
Total City Water Consumption
12,313,766
3,234,262
W
CITY OF SCHERTZ, TEXAS
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
(UNAUDITED)
TABLE 8
Fiscal
Year
Ended
September 30,
Total Taxable
Assessed Value
Total Direct
Tax Rate
2010
$ 1,933,159,122
0.4342
2009
1,891,409,716
0.4090
2008
1,939,016,982
0.4090
2007
1,423,205,878
0.4317
2006
1,397,297,729
0.3977
2005
1,292,156,353
0.3760
2004
1,139,992,157
0.3825
2003
1,024,412,713
0.3825
2002
827,142,321
0.3825
2001
731,305,433
0.3405
Source: Guadalupe County Tax Office
NOTES: Property in the City of Schertz is reassessed every year at estimated actual value. For this reason, assessed
value is equal to estimated actual value. Tax rates are per $100 of assessed value.
Property tax is the largest revenue source of the City.
91
CITY OF SCHERTZ, TEXAS
DIRECT AND OVERLAPPING PROPERTY TAX RATES
LAST TEN FISCAL YEARS
(UNAUDITED)
TABLE 9
Source: Guadalupe County Tax Office
NOTE: Overlapping rates are those of local and county governments that apply within the City of Schertz. Not all
overlapping rates apply to all City of Schertz property owners.
0
City Direct Rates
Overlapping Rates
Schertz-
Cibolo-
Fiscal
Basic
Debt
Universal
Guadalupe
County
Year
Rate
Service
Total
City ISD
County
Road
2010
0.2842
0.1500
0.4342
1.4200
0.3345
0.5500
2009
0.2590
0.1500
0.4090
1.3850
0.3295
0.0600
2008
0.2590
0.1500
0.4090
1.3150
0.3295
0.0600
2007
0.2805
0.1512
0.4317
1.6100
0.3481
0.0550
2006
0.3005
0.0972
0.3977
1.7200
0.3531
0.0500
2005
0.2888
0.0872
0.3760
1.7400
0.3531
0.0500
2004
0.2946
0.0879
0.3825
1.7800
0.3654
0.0477
2003
0.3091
0.0734
0.3825
1.7300
0.3668
0.0463
2002
0.3208
0.0617
0.3825
1.7100
0.3499
0.0420
2001
0.3147
0.0258
0.3405
1.6267
0.3193
0.0630
Source: Guadalupe County Tax Office
NOTE: Overlapping rates are those of local and county governments that apply within the City of Schertz. Not all
overlapping rates apply to all City of Schertz property owners.
0
CITY OF SCHERTZ, TEXAS
PRINCIPAL PROPERTY TAX PAYERS
CURRENT YEAR AND NINE YEARS AGO
(UNAUDITED)
TABLE 10
Source: Guadalupe County Tax Office
93
2010
2001
Percentage
Percentage
of
of
Total City
Total City
Taxable
Taxable
Taxable
Taxable
Assessed
Assessed
Assessed
Assessed
Taxpayer
Value
Rank
Value
Value
Rank
Value
Republic Beverage Co. Distribution
$ 44,558,524
1
2.30%
$ -
-
Lack Properties Inc.
22,970,530
2
1.19%
-
-
San Antonio MTA LP
22,115,750
3
1.14%
-
-
Eye Care Centers of America Inc.
16,572,315
4
0.86%
-
-
AOH- Vantage at Schertz LLC
16,560,000
5
0.86%
-
-
Wal -Mart Real Estate Business Trust
14,529,843
6
0.75%
-
-
Sprint Spectrum LP
12,051,870
7
0.62%
-
-
H.E.Butt Grocery Co.
11,876,268
8
0.61%
9,344,547
2
1.28%
EM Limited Partnership
10,992,086
9
0.57%
-
-
Mid Cities 35 Partners LTD
10,607,005
10
0.55%
-
Atlantic Financial Group LTD
-
-
11,363,120
1
1.55%
Prologis North American Properties Fund
-
-
7,189,892
3
0.98%
C & W Ranches LTD
-
-
6,027,928
4
0.82%
Sycamore Apartment LTD
-
-
5,003,434
5
0.68%
Distribution Funding Inc.
-
-
4,888,993
6
0.67%
Negley Paint Co. Inc.
-
-
4,193,891
7
0.57%
AER Manufacturing Inc.
-
-
4,146,431
8
0.57%
Schertz VP Partners LTD
-
-
3,773,124
9
0.52%
3009 Properties LLC
-
-
3,655,823
10
0.50%
TOTALS
$ 182,834,191
9.46%
$ 59,587,183
8.15%
TOTAL TAXABLE ASSESSED VALUE
$1,933,159,122
$ 731,305,433
Source: Guadalupe County Tax Office
93
CITY OF SCHERTZ, TEXAS
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(UNAUDITED)
Source: Guadalupe County Tax Office
94
TABLE 11
Total Collections
To Date
Amount
$ 9,559,899
8,767,499
7,781,117
7,032,650
5,637,881
4,852,409
4,355,635
3,915,783
3,161,554
2,488,668
% of
Levy
99.17%
99.62%
99.84%
99.77%
99.86%
99.87%
99.89%
99.93%
99.93%
99.94%
Collected Within
Fiscal Year
Taxes Levied
Fiscal Year of Levy
Collections In
Ended
for the
% of
Subsequent
September 30,
Fiscal Year
Amount
Levy
Years
2010
$ 9,639,945
$ 9,559,899
99.17%
$ -
2009
8,800,927
8,703,978
98.90%
63,521
2008
7,793,405
7,711,714
98.95%
69,403
2007
7,048,818
6,957,827
98.71%
74,823
2006
5,645,611
5,576,559
98.78%
61,322
2005
4,858,508
4,796,062
98.71%
56,347
2004
4,360,470
4,252,349
97.52%
103,286
2003
3,918,379
3,881,204
99.05%
34,579
2002
3,163,819
3,107,209
98.21%
54,345
2001
2,490,095
2,459,900
98.79%
28,768
Source: Guadalupe County Tax Office
94
TABLE 11
Total Collections
To Date
Amount
$ 9,559,899
8,767,499
7,781,117
7,032,650
5,637,881
4,852,409
4,355,635
3,915,783
3,161,554
2,488,668
% of
Levy
99.17%
99.62%
99.84%
99.77%
99.86%
99.87%
99.89%
99.93%
99.93%
99.94%
CITY OF SCHERTZ, TEXAS
TAXABLE ASSESSED VALUE
LAST SEVEN FISCAL YEARS
(UNAUDITED)
Fiscal
0.4342
1,891,409,716
0.4090
1,939,016,982
0.4090
Year
Taxable
1,870,979,126
0.3977
1,589,745,469
0.3760
Ended
Value
Residential
Commercial
Tax- Exempt
Other
September 30,
January 1
Property
Property
Property
Property
2010
2009
$1,193,345,347
$692,030,966
$(126,198,829)
$173,981,638
2009
2008
1,147,403,041
656,276,237
(86,062,834)
173,793,272
2008
2007
1,074,280,935
728,323,513
(125,049,238)
261,461,772
2007
2006
1,392,720,883
423,317,359
(21,195,965)
400,215,580
2006
2005
1,201,285,889
344,827,561
(16,046,859)
340,912,535
2005
2004
1,068,235,628
262,553,018
(11,646,100)
270,602,923
2004
2003
985,774,636
248,629,342
(10,777,023)
209,390,471
NOTE: Financial data prior to fiscal year 2004 was not available.
95
Total Taxable
Assessed
TABLE 12
Total
Direct
fax Rate
$1,933,159,122
0.4342
1,891,409,716
0.4090
1,939,016,982
0.4090
2,195,057,857
0.4317
1,870,979,126
0.3977
1,589,745,469
0.3760
1,433,017,426
0.3825
CITY OF SCHERTZ, TEXAS
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
(UNAUDITED)
NOTES: a Details regarding the City's outstanding debt can be found in Note 9 to the current financial statements.
b. See Table 18 for personal income and population data for the City. These ratios are calculated using
personal income and population for the prior calendar year.
No!
Governmental Activities
Business -Type Activities
General
Certificates
Certificates
Fiscal
Obligation
of
Tax
Capital
Revenue
of
Year
Bonds
Obligation
Notes
Lease
Bonds
Obligation
2010
$ 37,530,000
$11,575,650
$ -
$ 133,408
$ 5,460,000
$ 6,149,350
2009
38,485,000
12,373,850
-
-
5,805,000
6,571,150
2008
32,790,000
13,158,700
-
107,078
6,230,000
6,976,300
2007
23,950,000
14,032,893
-
215,854
6,645,000
7,237,107
2006
18,740,000
13,560,000
-
319,996
7,055,000
-
2005
4,045,000
14,250,000
160,000
-
7,445,000
-
2004
4,456,000
14,785,000
450,000
-
4,625,000
-
2003
4,844,000
7,600,000
730,000
-
4,990,000
-
2002
5,222,000
4,375,000
1,000,000
-
5,275,000
60,000
2001
5,129,000
4,585,000
-
-
5,550,000
120,000
NOTES: a Details regarding the City's outstanding debt can be found in Note 9 to the current financial statements.
b. See Table 18 for personal income and population data for the City. These ratios are calculated using
personal income and population for the prior calendar year.
No!
Business -Type Activities
Public
Facility Refunding Tax Note
Loan Bonds Notes Payable
$ - $ - $ 310,000
7,000 - -
14,000 - -
21,000 - -
28,000 - -
34,000 - -
40,000 64,000 -
46,000 126,000 -
52,000 193,000 -
57,000 211,000 -
34,564
97
TABLE 13
Total
Primary
Percent of
*Per
Government
Gross Income
Capita
$ 61,158,408
7.14%
1,944
63,242,000
6.92%
1,932
59,276,078
7.06%
1,849
52,101,854
5.88%
1,639
39,702,996
1.56%
1,262
25,934,000
1.35%
968
24,420,000
2.43%
923
18,336,000
2.01%
764
16,177,000
1.93%
703
15,686,564
1.95%
713
CITY OF SCHERTZ, TEXAS
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
(UNAUDITED)
General Bonded Debt Outstanding
TABLE 14
Percentage of
General
Certificates
Value of
Fiscal
Obligation
of
Tax
Year
Bonds
Obligation
Notes
Total
2010
$ 37,530,000
$ 11,575,650
$ -
$49,105,650
2009
38,485,000
12,373,850
-
50,858,850
2008
32,790,000
13,158,700
-
45,948,700
2007
23,950,000
14,032,893
-
37,982,893
2006
18,740,000
13,560,000
-
32,300,000
2005
4,045,000
14,250,000
160,000
18,455,000
2004
4,456,000
14,785,000
450,000
19,691,000
2003
4,844,000
7,600,000
730,000
13,174,000
2002
5,222,000
4,375,000
1,000,000
10,597,000
2001
5,129,000
4,585,000
-
9,714,000
TABLE 14
Percentage of
Actual Taxable
Value of
Per
Property
Capita
2.54%
1,561
2.69%
1,554
2.37%
1,433
1.73%
1,195
1.73%
1,027
1.16%
689
1.37%
744
1.29%
549
1.28%
461
1.33%
442
NOTE: Details regarding the City's outstanding debt can be found in Note 9 to the current financial statements. See
Table 8 for the City's property tax value data. City population data can be found in Table 18.
98
CITY OF SCHERTZ, TEXAS
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
(UNAUDITED)
Governmental Unit
Debt repaid with property taxes:
Debt
Outstanding
Estimated
Percentage
Applicable*
TABLE 15
Estimated
Share of
Overlapping
Debt
Alamo CCD
$ 519,743,778
0.09%
$ 467,769
Bexar County
511,188,144
0.09%
460,069
Bexar County Hospital District
756,795,000
0.09%
681,116
Comal County
36,929,140
2.71%
1,000,780
ComalISD
533,250,850
2.89%
15,410,950
Guadalupe County
18,680,000
20.14%
3,762,152
San Antonio River Authority
38,235,000
0.08%
30,588
Schertz - Cibolo- Universal
270,098,536
50.98%
137,696,233
Subtotal, Overlapping Debt
City Governmental Activities Direct Debt
TOTAL NET OVERLAPPING DEBT
159,509,657
48,819,435
$ 208,329,092
NOTES: The overlapping debt was received from the Municipal Advisory Council of Texas. Details regarding the City's
outstanding debt can be found in Note 9 to the current financial statements.
••
CITY OF SCHERTZ, TEXAS
DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
(UNAUDITED)
Assessed Value, 2009 Tax Roll
Debt Limit - Texas statues do not provide a
legal debt limit for cities; however, through
accepted practice a practical "economic" debt
limit is considered to be 10% of the assessed value.
Amount of Applicable Debt:
Bonded Debt - General Obligation Bonds
Less Debt Service Fund Balance
DEBT MARGIN
Total Net Debt as a Percentage
of Debt Margin
$1,933,159,122
$ 193,315,912
$ 49,105,650
(286,215) 48,819,435
$ 144,496,477
33.79%
100
Fiscal Year
2001
2002
2003
2004
Assessed Value
$ 731,305,433
$ 827,142,321
$1,024,412,713
$1,139,992,157
Debt Margin
$ 73,130,543
$ 82,714,232
$ 102,441,271
$ 113,999,216
Total Net Debt Applicable to Limit
4,972,800
4,922,926
4,520,834
4,208,707
Total Debt Margin
$ 68,157,743
$ 77,791,306
$ 97,920,437
$ 109,790,509
100
TABLE 16
Fiscal Year
2005 2006 2007 2008 2009 2010
$1,292,156,383 $ 1,397,297,729 $ 1,423,205,878 $ 1,939,016,982 $ 1,891,409,716 $ 1,933,159,122
$ 129,215,638 $ 139,729,773
3,781,530 18,392,261
$ 125,434,108 $ 121,337,512
$ 142,320,588 $ 193,901,698
23,488,500 45,466,903
$ 118,832,088 $ 148,434,795
101
$ 189,140,972 $ 193,315,912
50,414,481 48,819,435
$ 138,726,491 $ 144,496,477
CITY OF SCHERTZ, TEXAS
PLEDGED REVENUE COVERAGE
LAST TEN FISCAL YEARS
(UNAUDITED)
TABLE 17
NOTE: Details regarding the City's outstanding debt can be found in Note 9 to the current financial
statements. Operating expenses do not include depreciation, interest, amortization or joint venture
expenses.
102
Water Revenue Bonds
Utility
Less:
Net
Debt Service
Fiscal
Service
Operating
Available
Year
Charges
Expenses
Revenue
Principal
Interest
Coverage
2010
$14,993,648
$12,399,880
$ 2,593,768
$ 615,400
$ 502,629
2.32
2009
14,533,390
9,973,940
4,559,450
685,400
534,634
3.74
2008
13,620,440
9,040,264
4,580,176
665,400
558,569
3.74
2007
13,476,288
7,896,319
5,579,969
645,800
501,397
4.86
2006
11,289,876
6,955,000
4,334,876
390,000
354,965
5.82
2005
9,381,042
6,136,390
3,244,652
380,000
213,290
5.47
2004
7,583,136
5,653,184
1,929,952
365,000
226,795
3.26
2003
8,228,571
5,359,309
2,869,262
285,000
236,913
5.50
2002
4,663,584
3,061,327
1,602,257
275,000
246,263
3.07
2001
4,260,109
3,115,427
1,144,682
35,000
55,750
12.61
NOTE: Details regarding the City's outstanding debt can be found in Note 9 to the current financial
statements. Operating expenses do not include depreciation, interest, amortization or joint venture
expenses.
102
Year
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
Population
31,465
32,730
32,057
31,788
31,452
26,780
26,463
24,000
23,000
22,000
CITY OF SCHERTZ, TEXAS
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
(UNAUDITED)
Personal
Income
$ 856,236,720
913,919,790
839,701,058
885,836,196
2,543,051,460
1,926,713,880
1,005,594,000
912,000,000
838,994,000
802,516,000
TABLE 18
Unemployment
Rate
5.7%
5.1%
5.0%
4.0%
4.4%
3.6%
4.1%
2.4%
2.4%
2.4%
Sources: Population, personal income, median age and education level information provided by City Economic
Development Corporation. School enrollment provided by Schertz- Cibolo - Universal City Independent
School District. Unemployment data provided by the Texas Workforce Commission.
103
Education
Per Capita
Level In
Personal
Median
Years of
School
Income
Age
Schooling
Enrollment
$ 27,212
34.4
15.4
12,330
27,923
36.5
13.9
11,700
26,194
35.1
14.0
10,991
27,867
36.3
14.0
9,470
80,855
36.1
18.0
8,380
71,946
35.1
15.9
7,712
38,000
32.7
15.0
7,257
38,000
35.1
14.6
7,245
36,478
35.1
14.6
6,440
36,478
35.1
14.6
6,440
Unemployment
Rate
5.7%
5.1%
5.0%
4.0%
4.4%
3.6%
4.1%
2.4%
2.4%
2.4%
Sources: Population, personal income, median age and education level information provided by City Economic
Development Corporation. School enrollment provided by Schertz- Cibolo - Universal City Independent
School District. Unemployment data provided by the Texas Workforce Commission.
103
CITY OF SCHERTZ, TEXAS
TOP TEN PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
(UNAUDITED)
TABLE 19
Source: City Economic Development Corporation
Note: Nine year principal employer history is not available.
104
2010
2001
Percentage
Percentage
of Total City
of Total City
Employer
Employees
Employment
Employees
Employment
Schertz/Cibolo/UC ISD
1,615
11.71%
N/A
N/A
Wal -Mart Stores
350
2.54%
N/A
N/A
EyeCare Centers of America
321
2.33%
N/A
N/A
City of Schertz
320
2.32%
N/A
N/A
H.E.B. Grocery Co.
300
2.17%
N/A
N/A
Block
220
1.59%
N/A
N/A
Valero Energy
200
1.45%
N/A
N/A
Theis Distributing Co.
125
0.91%
N/A
N/A
Federal Express Freight
120
0.87%
N/A
N/A
Manco
120
0.87%
N/A
N/A
Source: City Economic Development Corporation
Note: Nine year principal employer history is not available.
104
CITY OF SCHERTZ, TEXAS
FULL -TIME EQUIVALENT CITY GOVERNMENTAL EMPLOYEES BY FUNCTION
LAST NINE FISCAL YEARS
(UNAUDITED)
TABLE 20
Full-Time Equivalent Employees as of September 30,
Function 2002 2003 2004 2005 2006 2007 2008 2009 2010
General Government
City Manager
4
3
4
4
3
4
7
7
6
Court Support
3
3
4
4
4
4
0
0
0
Municipal Court
2
2
2
2
3.5
5
6
4
5
Customer Relations
0
0
0
0
0
2
4
4
4
Planning and Zoning
3
2
2
2
3
4
5
4
4
Facility Maintenance
5
5
6
6
6.5
9
11
10
13.5
City Secretary
2
2
2
2
2
2
2
2
2
Media Relations
1
1
1
1
1
2
3
3
3
Records Management
0
0
1
15
2
2
3
3
1
Engineer
0
0
0
0
0
1
3
1
2
GIs
0
0
0
0
0
0
0
4
2
Information Tecynology
1
2
2
2
3
3
3
3
3
Human Resources
1
2
2
2
2
2
3
3
4
Finance
4
4
5
5
5
5
6
6
6
Purchasing
0
0
0
0
0
1
2
2
5
Fleet Service
2
2
2
3
3
3
3
3
3
Public Safetv
Police
44.5
46.5
50.5
53.5
62
66
69
70
67
Fire
24
24
30
31
32
32
32
32
32
Inspections
5
6
6
6
6
8
8
7
6
Marshal Services
0
0
0
0
0
0
0
5
5
Health
Animal Control 5 5.5 5 5 5 5 6 6 6
Parks and Culture
Parks
4
5
6
7
7
9
8
8
8
Pools
7.5
8
14.5
15
12.5
12.5
0
0
0
Civic and Community
Centers
0
0
0
0
0
1
1
1
1
Library
7.5
7
8.5
8.5
9.5
9.5
14
15
14
Public Environment
Streets
9
9
13
12
11
11
13
13
13
Public Works
Public Works
6
6
6
6
6
6
6
6
6
Business Office
11
12
11
9
10
9
10
10
10
Water and Sewer
11
14
15
15
17
19
14
16
15
Drainage
0
0
0
0
0
5
6
7
7
EMS
27
27.5
28
32
32.5
33.5
50
54
44
Economic Development
2
1
2
2
3
3
3
4
4
TOTAL
191.5
199.5
228.5
250
251.5
278.5
301
313
301.5
Source: City Adopted Budgets
NOTES: Less than 10 years of data is available. The information will be presented on a prospective basis
105
CITY OF SCHERTZ, TEXAS
OPERATING INDICATORS BY FUNCTION /PROGRAM
LAST TEN FISCAL YEARS
(UNAUDITED)
Source: Various City Departments
NOTE: Indicators are not available for the police or EMS function
106
Fiscal Year
Function
2001
2002
2003
2004
2005
General Government
Building Permits Issued
2,754
2,812
7,119
3,055
3,434
Schertz Tales
Number of Magazines printed
-
-
-
-
-
Police
CFS
N/A
10,743
11,089
11,875
12,770
Arrests
N/A
666
670
631
729
Traffic Violations
N/A
8,863
9,157
9,652
11,157
Accidents
N/A
857
875
1,127
1,169
N/A
Fire
N/A
Numer of Rescue /Other Responses
N/A
1,058
929
1,082
1,131
Number of Fire Responses
N/A
76
89
90
128
Number of Inspections
N/A
202
254
301
331
Number of Training Classes Conducted
N/A
87
186
213
136
Number of Pre -Plan Inspections
N/A
N/A
N/A
N/A
N/A
Marshal Service
Warrants Issued
N/A
N/A
N/A
N/A
N/A
Warrants Cleared
N/A
N/A
N/A
N/A
N/A
Food Establishment Permits
N/A
N/A
N/A
N/A
N/A
Food Establishment Inspection
N/A
N/A
N/A
N/A
N/A
Foster /Adoption Inspections
N/A
N/A
N/A
N/A
N/A
Parks
Facility Reservations
174
178
300
333
294
Community and Civic Centers
Civic Center
-
-
-
-
-
Community Center Rentals
Animal Services
Number of Animals Handled
N/A
N/A
N/A
N/A
N/A
Number of Adoptions
N/A
N/A
N/A
N/A
N/A
Number of Return to Owners
N/A
N/A
N/A
N/A
N/A
Number of Transfers
N/A
N/A
N/A
N/A
N/A
Library
Annual Circulation
131,293
183,467
225,573
238,602
257,765
Library Visits
99,541
142,258
162,263
171,811
175,976
Library Program Attendance
2,050
3,607
4,328
5,170
5,254
Registered Users
5,370
9,320
12,779
14,492
17,101
Water
New Connections
545
1,241
439
425
425
Water Main Breaks
35
21
18
26
39
Total Consumption (thousands of gallons)
10,977,327
10,177,465
10,747,349
10,373,621
11,030,621
Daily Average Consumption
(thousands of gallons)
30,492
28,271
29,854
28,816
30,639
Peak Daily Consumption
(thousands of gallons)
6,375
5,616
6,757
6,869
6,939
Total Customers
7,103
7,311
8,045
9,389
9,673
Average Use Per Connection
8,942
4,682
3,565
6,329
5,957
Sewer
Total Customers
6,185
6,511
7,261
7,887
8,664
Facilities Maintenance
Number of Buildings Maintained
8
8
8
9
9
Square Footage
73,505
73,505
73,505
89,452
89,452
Source: Various City Departments
NOTE: Indicators are not available for the police or EMS function
106
Fiscal Year
TABLE 21
2006
2007
2008
2009
2010
9,948
5,811
2,869
5,181
4,806
-
72,000
108,000
120,000
144,000
16,642
25,478
37,829
36,319
37,269
526
608
719
873
790
10,487
13,461
18,820
20,452
19,259
1,192
1,484
1,475
1,491
1,606
1,216
1,459
978
1,536
1,671
129
103
141
135
76
356
302
461
447
425
136
694
595
264
107
N/A
N/A
N/A
452
642
N/A
N/A
N/A
5,974
5,444
N/A
N/A
N/A
3,836
4,023
N/A
N/A
N/A
134
129
N/A
N/A
N/A
209
202
N/A
N/A
N/A
34
27
416
516
983
671
719
-
-
-
484
594
-
635
N/A
N/A
N/A
1,804
2,021
N/A
N/A
N/A
255
249
N/A
N/A
N/A
252
279
N/A
N/A
N/A
415
451
276,873
292,909
278,826
263,131
392,528
181,603
179,630
175,435
188,118
257,235
5,064
6,680
7,444
10,499
10,610
19,342
19,595
23,327
20,360
24,628
532
91
1,474
446
509
46
29
72
72
25
13,322,380
11,535,927
14,460,239
15,115,679
12,313,766
37,007
31,606
39,617
38,550
33,736
10,540
5,379
5,804
7,520
7,040
10,118
10,598
10,900
10,198
10,134
7,060
1,089
6,378
6,913
5,054
8,990
9,391
6,378
9,974
9,499
12
14
16
19
19
111,642
127,589
135,091
166,591
166,591
107
CITY OF SCHERTZ, TEXAS
CAPITAL ASSET STATISTICS BY FUNCTION /PROGRAM
LAST TEN FISCAL YEARS
(UNAUDITED)
108
Fiscal Year
Function
2001
2002
2003
2004
2005
Police
Stations
1
1
1
1
1
Patrol Units
8
11
21
26
27
Fire
Stations
1
1
1
1
2
Training Facility
1
1
1
1
1
Fire Vehicles
7
9
11
11
11
Marshal Service
Vehicles
N/A
N/A
N/A
N/A
N/A
Streets
Streeets, paved (miles)
100
100
102
102
102
Streets, unpaved (miles)
7
9
9
9
9
Sidewalks (miles)
17
17
17
17
21
Parks and Recreation
Parks
7
7
7
7
7
Playground
117
117
20
20
20
Swimming Pools
-
-
1
1
1
Baby Pools
-
-
1
1
1
Baseball/Softball Diamonds
8
8
12
12
12
Soccer Fields
-
-
-
-
-
Community Centers
1
1
1
1
1
Animal Control
Control Vehicle
1
1
2
2
2
Library
Facility
1
1
1
1
1
Volumes in Collection
36,259
39,062
41,275
46,961
49,289
Water
Number of Reservoirs
-
-
-
1
1
Number of Pump Stations
-
-
-
1
1
Water Mains (Miles)
144
149
155
159
166
Sewer
Sanitary Sewers (Miles)
51
54
54
54
54
Storm Sewers (Miles)
4
4
4
4
4
Facilities Maintenance
Vehicles
4
4
4
4
4
Generators
2
2
2
2
3
Source: Various City Departments
NOTES: No Capital Asset indicators are available for
the General
Government or EMS function.
108
TABLE 22
Fiscal Year
2006 2007 2008 2009 2010
1
1
1
1
1
34
33
33
38
40
2
2
2
2
2
1
1
1
-
-
12
12
14
13
13
N/A
N/A
N/A
5
7
102
107
122
124
125
9
9
7
7
7
32
32
50
50
50
7
7
7
11
12
20
20
20
20
19
1
1
2
2
2
1
1
2
2
2
12
12
12
12
12
-
-
-
12
12
1
1
2
2
4
2
3
3
3
3
1
1
1
1
1
52,818
56,282
60,650
64,400
71,929
1
-
-
-
-
1
2
-
5
5
171
177
182
188
190
54
59
71
78
78
4
6
8
9
9
4
4
4
5
5
3
3
3
3
3
109
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COMPLIANCE SECTION
110
4 IAKUIV
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• — I� n
e
REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND
OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL
STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT A UDITING STANDARDS
The Honorable Mayor and Members of the City Council
City of Schertz, Texas
We have audited the financial statements of the governmental activities, the business -type activities, the
discretely presented component unit, each major fund, and the aggregate remaining fund information of the
City of Schertz, Texas, as of and for the year ended September 30, 2010, which collectively comprise the
City of Schertz, Texas, basic financial statements and have issued our report thereon dated
February 25, 2011. We conducted our audit in accordance with generally accepted auditing standards and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the City of Schertz's internal control over financial
reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the
financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City of
Schertz's internal control over financial reporting. Accordingly, we do not express an opinion on the
effectiveness of the City of Schertz's internal control over financial reporting.
A deficiency in internal control exists when the design or operation of a control does not allow management
or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct
misstatements on a timely basis. A material weakness is a deficiency or a combination of deficiencies, in
internal control such that there is a reasonable possibility that a material misstatement of the entity's financial
statements will not be prevented, or detected and corrected on a timely basis.
Our consideration of the internal control over financial reporting was for the limited purpose described in the
first paragraph of this section and was not designed to identify all deficiencies in internal control over
financial reporting that might be deficiencies, significant deficiencies, or material weaknesses. We did not
identify any deficiencies in internal control over financial reporting that we consider to be material
weaknesses, as defined above.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City of Schertz's financial statements are free of
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material affect on the
determination of the financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be reported
under Government Auditing Standards.
a
We noted certain matters that we reported to management of the City of Schertz, Texas, in a separate letter
dated February 25, 2011.
This report is intended solely for the information and use of management, City Council and is not intended to
be and should not be used by anyone other than these specified parties.
�j ra4�� PG.
14ZO-1
Armstrong, Vaughan & Assoc., P.C.
February 25, 2011
112
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