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03-24-2015 Agenda with backupCity Council Agenda REGULAR SESSION CITY COUNCIL March 24,2015,6:00 P.M. HAL BALDWIN MUNICIPAL COMPLEX COUNCIL CHAMBERS 1400 SCHERTZ PARKWAY BUILDING #4 SCHERTZ, TEXAS 78154 Call to Order — City Council Regular Session Invocation and Pledges of Allegiance to the Flats of the United States and State of Texas. (Councilmember Thompson) City Events and Announcements • Announcements of upcoming City Events (J. Bierschwale/13. James) • Announcements and recognitions by City Manager (J. Kessel) Presentations • Awards presentation SCUCISD/Historical Preservation Committee Essay and Art Contest. (13. Dennis/D. Weirtz/J. Webb/13. Hall) • FY 2013-14 Comprehensive Annual Financial Report (CAFR) (J. Kessel/J. Santoya/R. Galindo/D. Fraser) Special Recognition Employee and Community Recognition (D. Wait) -Dallas Hopper, Schertz PD -Steve Rolison, Schertz PD -Jeffrey Krivacka, Schertz PD -Hayden Henshaw, Acadian EMS 03-24-2015 Council Agenda - Jessica Trevino, Acadian EMS Employee Recognition • New Employees Finance Department: Jessica Kurz, Purchasing and Asset Manager and Benjamin Juarez, Accountant I (B. Cantu /R. Galindo) Proclamation • Proclamation recognizing Arthur Mancinas. (Mayor Carpenter) Workshop Session • Discussion and possible action regarding "Council On The Move" Agenda meetings outside the Council Chambers. (Mayor /Council) • Discussion and possible action regarding a proposed Ordinance prohibiting the use of Hand -Held Mobile Communication Devices and Portable Electronic Devices while operating a motor vehicle. (J. Bierschwale /M. Hansen) Hearing of Residents This time is set aside for any person who wishes to address the City Council. Each person should fill out the speaker's register prior to the meeting. Presentations should be limited to no more than 3 minutes. All remarks shall be addressed to the Council as a body, and not to any individual member thereof. Any person making personal, impertinent, or slanderous remarks while addressing the Council may be requested to leave the meeting. Discussion by the Council of any item not on the agenda shall be limited to statements of specific f `actual information given in response to any inquiry, a recitation of existing policy in response to an inquiry, and /or a proposal to place the item on a future agenda. The presiding officer, during the Hearing of'Residents portion of the agenda, will call on those persons who have signed up to speak in the order they have registered. Consent Agenda Items The Consent Agenda is considered self - explanatory and will be enacted by the Council with one motion. There will be no separate discussion of these items unless they are removed from the Consent Agenda upon the request of the Mayor or a Councilmember. 1. Minutes - Consideration and/or action regarding the approval of the minutes the Special Workshop Meeting of March 6, 2015 and the Regular Meeting of March 10, 2015. . (J. Kessel /B. Dennis) 03 -24 -2015 City Council Agenda Page - 2 - 2. Ordinance No. 15 -T -09 — Consideration and /or action approving an Ordinance authorizing a budget adjustment for the Thoroughfare Plan and Roadway Impact Fee Study in the amount of $130,000.00. Final Reading (B. James /K. Woodlee) 3. Resolution No. 15 -R -24 - CAFR FY 2013 -14 — Consideration and/or action approving Resolution No. 15 -R -24 regarding the approval of the FY 2013 -14 Comprehensive Annual Financial Report (CAFR). (J. Kessel /J. Santoya & D. Fraser) 4. Resolution No. 15 -R -22 — Consideration and/or action approving a Resolution authorizing EMS Debt Revenue Adjustments for certain inactive outstanding accounts receivables. (J. Kessel/D. Wait) 5. Resolution No. 15 -R -23— Consideration and/or action approving a Resolution authorizing Utility Billing Debt Revenue Adjustments for certain inactive outstanding accounts receivables. (J. Bierschwale /C. Spence) Discussion and Action Items 6. Resolution No. 15 -R -25 — Consideration and/or action approving a Resolution . authorizing a Professional Services Agreement with Freese and Nichols, Inc., related to the City's Thoroughfare Plan Update and Roadway Impact Fee Study. (B. James /K. Woodlee) 7. Ordinance No. 15 -T -11 — Consideration and /or action approving an Ordinance authorizing a budget adjustment to fund the Crime Victim Liaison and the Communication Shift Supervisor positions. First Reading (J. Bierschwale /M. Hansen) Roll Call Vote Confirmation Requests and Announcements 8. Announcements by City Manager • Citizen Kudos • Recognition of City employee actions • New Departmental initiatives 9. Requests by Mayor and Councilmembers that items be placed on a future City Council agenda. 10. Requests by Mayor and Councilmembers to City Manager and Staff for information. 11. Announcements by Mayor and Councilmembers • City and community events attended and to be attended • City Council Committee and Liaison Assignments (see assignments below) • Continuing education events attended and to be attended • Recognition of actions by City employees 03 -24 -2015 City Council Agenda Page - 3 - • Recognition of actions by community volunteers • Upcoming City Council agenda items 12. Information available in City Council Packets - NO DISCUSSION TO OCCUR Schertz Economic Development Corporation 2014 Tax Year Reimbursement per the City's Development Agreement with Caterpillar 2014 Tax Year Reimbursement per the City's Development Agreement with Capital Group Executive Session 1.3. The City Council will meet in closed session under Section 551.072 of the Texas Government Code, Deliberation Regarding Real Property. • Project E -005 — Project Shelter 14. The City Council will meet in closed session under Texas Government Code Section 551.071 Consultation with Attorney and 551.074 Personnel Matters regarding whether a Council Member has a direct or indirect financial interest in a contract with the City. Reconvene into Regular Session 13a. Take any action based on discussions held in closed session under Agenda Item 13. 14a. Take any necessary action based on discussions held in closed session under Agenda Item number 1.4. Roll Call Vote Confirmation Adiournment CERTIFICATION I, BRENDA DENNIS, CITY SECRETARY OF THE CITY OF SCHERTZ, TEXAS, DO HEREBY CERTIFY THAT THE ABOVE AGENDA WAS PREPARED AND POSTED ON THE OFFICIAL BULLETIN BOARDS ON THIS THE 19TH DAY OF MARCH 2015 AT 4:30 P.M., WHICH IS A PLACE READILY ACCESSIBLE TO THE PUBLIC AT ALL TIMES AND THAT SAID NOTICE WAS POSTED IN ACCORDANCE WITH CHAPTER 551, TEXAS GOVERNMENT CODE. -?,revuG p I�,ev ups Brenda Dennis, City Secretar 03 -24 -2015 City Council Agenda Page - 4 - I CERTIFY THAT THE ATTACHED NOTICE AND AGENDA OF ITEMS TO BE CONSIDERED BY THE CITY COUNCIL WAS REMOVED BY ME FROM THE OFFICIAL BULLETIN BOARD ON DAY OF 2015. Title: This facility is accessible in accordance with the Americans with Disabilities Act. Handicapped parking spaces are available. If you require special assistance or have a request for sign interpretative services or other services please call 210 - 619 -1030. The City Council for the City of Schertz reserves the right to adjourn into executive session at any time during the course of this meeting to discuss any of the matters listed above, as authorized by the Texas Open Meetings Act. Executive Sessions Authorized: This agenda has been reviewed and approved by the City's legal counsel and the presence of any subject in any Executive Session portion of the agenda constitutes a written interpretation of Texas Government Code Chapter 551 by legal counsel for the governmental body and constitutes an opinion by the attorney that the items discussed therein may be legally discussed in the closed portion of the meeting considering available opinions of a court of record and opinions of the Texas Attorney General known to the attorney. This provision has been added to this agenda with the intent to meet all elements necessary to satisfy Texas Government Code Chapter 551.144(c) and the meeting is conducted by all participants in reliance on this opinion. COUNCIL COMMITTEE AND LIAISON ASSIGNMENTS Mayor Carpenter Mayor Pro -Tem Edwards — Place 4 Audit Committee Audit Committee Interview Committee for Boards and Commissions Hal. Baldwin Scholarship Committee Investment Advisory Committee Interview Committee for Boards and Commissions TIRZ II Board Cibolo Valley Local Government Corporation Councilmember Fowler — Place 1 Councilmember Azzoz — Place 2 Interview Committee for Boards and Commissions Animal Control Advisory Committee Schertz Housing Board Liaison Sweetheart Advisory Committee Randolph Joint Land Use Study (JLUS) Executive Committee Schertz Seguin Local Government Corporation Councilmember John — Place 3 Councilmember Thompson Place 5 Lone Star Rail District Audit Committee 03 -24 -2015 City Council Agenda Page - 5 - Agenda No. Workshop CITY COUNCIL MEMORANDUM City Council Meeting: March 24, 2015 Department: Subject: BACKGROUND Mayor / Council Discussion regarding "Council on the Move" Agenda meetings The City Council has discussed having Council meetings outside the normal. City Council Chambers and moving the meetings to different locations throughout the City. FISCAL IMPACT None RECOMMENDATION Staff recommends Council discuss the concept moving forward and direct staff accordingly. Workshop City Council Meeting: March 24, 2015 Department: Police Subject: Workshop discussion regarding a proposed Ordinance regulating the use of hand -held mobile communication devices and portable electronic devices BACKGROUND Goal To see direction from Council regarding a regulation on the use of hand -held mobile communication devices and portable electronic devices while operating a motor vehicle upon the streets and highways of the City with certain defenses. Community Benefit The use of hand -held communication devises while operating a motor vehicle has proven to be hazardous to drivers upon the roadways of this State. By prohibiting the use of these devices while operating a motor vehicle, with certain defenses, would further and protect the public health, safety and welfare of the City. Summary of Recommended Action The proposed ordinance was presented to the Transportation Safety Advisory Commission (TSAC) for their review, during their regular meeting February 5th It was again presented during their regular meeting March 5th for discussion. TSAC approved the ordinance as written and requested that it be presented to City Staff recommends that Council discuss the proposed ordinance and provide direction to staff. FISCAL IMPACT The fiscal impact would be in the creation and placement of signs notifying motorists of the passage of this section. It is believed that ten (10) signs should provide appropriate notice. At approximately $1.57 per sign, ten (10) signs would be under $1600. Staff recommends Council discuss and direct staff accordingly F,,T4 0 FXI* so 107 1 BILIN Draft Ordinance ORDINANCE NO. 2015- AN ORDINANCE PROHIBITING THE USE OF HAND -HELD MOBILE COMMUNICATION DEVICES AND PORTABLE ELECTRONIC DEVICES WHILE OPERATING A MOTOR VEHICLE BY ADDING ARTICLE X TO CHAPTER 86 OF THE CITY CODE OF ORDINANCES OF THE CITY OF SCHERTZ, TEXAS, PROVIDING FOR A FINE OF UP TO $200.00 PER VIOLATION, PROVIDING AN EFFECTIVE DATE, AND OTHER MATTERS IN CONNECTION THEREWITH WHEREAS, the City Council of the City of use of hand -held mobile communication devices any in a call, (2) send, read, or write a text message, transmitted by internet or other electronic means, (4' other use of the device while operating a motor veh public, which creates a particular danger or probabili WHEREAS, the City Council believes communication devices and port bl : electroi communication device while driving, with c public health, safety, and welfare of the City. rig the use of band -held mobile engage in any use of a mobile , would further and protect the NOW THEREFORE'* : BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS: SECTION 1. Chapter 86, "`Traffic and `Motor Vehicles" of the Code of Ordinances, City of Sch rt , Texas, is h r b rnend d by adding a new section and article, to be numbered Sec. 866; Article ;:which said section and article'to read as follows: Sec. 86'25`6 REGULATING" THE USE OF HAND -HELD MOBILE COMMUNICATION DEVICES AND PORTABLE ELECTRONIC DEVICES WHILE DRIVING (a) In (1) ENGAGING IN A CALL means talking to, dialing, or listening on a hand -held mobile communication device, but does not include holding a mobile communication device to activate or deactivate the device. (2) HAND -HELD MOBILE COMMUNICATION DEVICE means a text - messaging device or other electronic, two -way communication device that uses a commercial mobile service, as defined by 47 U.S.C.§ 332, that is designed to receive and transmit voice communication, text message or pictorial communication, or both, whether by internet or other electronic means. The term includes a mobile telephone and a personal digital assistant (PDA). (3) HANDS -FREE MOBILE TELEPHONE means a mobile telephone that has an internal feature or function or that is equipped with an attachment or addition, whether or not permanently part of the mobile telephone, by which a user engages in a call without the use of either hand (or prosthetic device or aid in the case of a physically disabled person) whether or not the use of either hand (or prosthetic device) is necessary to activate or deactivate the mobile telephone. (4) PARK OR PARKED shall mean foi the operator to completely cease movement of a motor vehicle in a lawful manner and location. For purposes of this Section, "Pafked" does not include or mean a vehicle stopped in a lane of traffi .due to either a lawful traffic control device, or the conditions on the roadway, or traffic congestion patterns then existing. (5) PORTABLE ELECTRONIC DEVICE shall mean an 'MP3 or other hand -held music, player, electronic-reading device, laptop computer, pager, global positioning: system or navigation system, electronic game device. or portable COMDutino, device. (b) ' person commits an offense if the person uses a hand -held mobile communication device and/or a portable electronic device to 1) engage in a call, 2) send, read,, or write a text message, 3) view pictures or written text whether transmitted by: iiztemet or other electronic means, 4) engage in gaming, or 5) engage in any other use of the device while operating a motor vehicle. (c) This section does not apply to an operator of a motor vehicle using a hand -held mobile communications device and /or portable electronic device: (1) while the vehicle is legally parked or is being driven on private property; (2) that is affixed to the vehicle and used as a global positioning or navigation system; N (3) that is used with a hands -free mobile communication telephone or other such device to engage in telephone communications or to listen to audio transmissions; (4) while operating an authorized emergency vehicle in an official capacity; or (5) who is licensed by the Federal Communications Commission while operating a radio frequency device,, other than a hand -held mobile communication device. (d) It shall be an affirmative d person was using a hand - electronic device for the bum (1) reporting illegal activity iecution under this section that the communication device or portable an emergency response operator, a fire department, geucy, a hospital,, a physician's office, or a health j icai car other emergency situation; or this section shall be punished by a fine section is jnot a moving violation and may not be made a tw record or insurance record. (g) To,, the extent this section conflicts with Texas Transportation Code Section 545.424, regarding the use of wireless communication devices while operating a motor vehicle by tninors, Texas Transportation Code Section 545.425, regarding the use o wireless communication devices in school crossing zones, or Texas Transportation Code Section 545.4252, regarding the use of wireless communication devices on school property, this section does not apply. SECTION 2. Chapter 86 of the Code of Ordinances, City of Schertz, Texas, as amended, will remain in full force and effect, except as amended by this Ordinance. SECTION 3. The City Council hereby authorizes the City Manager or his designee to have signs posted in designated areas in the City in accordance with Texas Transportation Code Section 545.425, as amended, that prohibit the use of wireless communication devices while operating a motor vehicle in the City. 3 SECTION 4. The recitals contained in the preamble hereof are hereby found to be true, and such recitals are hereby made a part of this Ordinance for all purposes and are adopted as a part of the judgment and findings of the City Council. SECTION 5. All ordinances, or parts thereof, which are in conflict or inconsistent with any provisions of this Ordinance are hereby repealed to the extent of such conflict, and the provisions of this Ordinance shall be and remain controlling as to the matters resolved herein. SECTION 6. This Ordinance shall be cc laws of the State of Texas and the United States of in accordance with the SECTION and any publication s Ordinance shall be i ffettive M date of final adoption hereof was intentionally left blank.] 0 PASSED and APPROVED on first reading this the _ day of 12015. PASSED, APPROVED and ADOPTED on second reading this the _ day of , 2015. City Secretary (Seal of the City) I APPROVED: Carpenter, Mayor CITY COUNCIL MEMORANDUM City Council Meeting: March 24, 2015 Department: Subject: City Secretary Minutes Agenda No. 1 The City Council held a Special meeting on March 6, 2015, and a Regular meeting on March 10, 2015. . FISCAL IMPACT None RECOMMENDATION Staff recommends Council approve the minutes of the special meeting of March 6, 2015 and regular meeting of March 10, 2015. ATTACHMENT Minutes — Special meeting March 6, 2015, Regular meeting March 10, 2015. MINUTES SPECIAL MEETING March 6, 2015 A Special Meeting was held by the Schertz City Council of the City of Schertz, Texas, on March. 6, 2015, at 9:00 a.m., in the GVEC Western Operation Center Meeting Room, 6400 I -H 10 West, Seguin, Texas. The following members present to -wit: Mayor Michael Carpenter Councilmember Jim Fowler Councilmember Robin. Thompson Staff Present: Deputy City Manager John Bierschwale City Attorney Charles Zech IT Director Myles Clauser Councilmember Azzoz was absent. Guests Present: Mr. Richard Dziewit Mr. Robert Brockman Ms. Hanna Hill Mayor Carpenter called at 9: Mayor Pro -Tem Cedric Edwards City Manager J T Secretary Brenda Assistant to City 1 Gonzalez Discussion and :direction 'in, preparation for pre- budget prioritization process, including but not limited to key growth and service provision indicators such as population growth, tax base development, staffing levels and structure, and how to apply, the information to assist in appropriate priority based decision making. (J. Mayor, Council;, and staff discussed the following topics: • Our Mission: Why do cities exist? What is the purpose that cities serve? • Why does "local government" exist? What service does "local government" provide our citizens? • Policy Values • Council's Mission: What is the role of the City Council with our form of local government? What is your role on the City Council? What do you bring to the team? • Council's Communication Style • Key Decisions 3 -6 -201.5 Minutes Page -1- • • • • • • • • • • • • • • Our "vision for Excellence" Process Essential Plans for Successful Cities Citizen Engagement Budget Framework — Economic Engine, Core Services, Quality of Life Performance Measurements Schertz Population Forecast Fund Balance (10 year history) Leadership Change John Bierschwale Transition Plan discussion Five Year Budget Forecast 30 Year Bond Capacity Forecast 2016 Budget Priorities June 2015 Council Retreat Recent Bond Measures Streets (New Capacity) Streets (Repair and Reconstruction) Buildings (New Capacity) Repair and Reconstruction (Buildings) Quality of Life (New Capacity and Remodel/Reco traction) Senior Staff'joined Council at 3: 00 p.m. Mayor, Council and staff further discus Adjournment Mayor Carpenter Michael R. Carpenter, Mayor Brenda 3 -6 -201.5 Minutes Page - 2 - MINUTES REGULAR MEETING March la, 2015 A Regular Meeting was held by the Schertz City Council of the City of Schertz, Texas, on March 10, 2015, at 6:00 p.m., in the Hal Baldwin Municipal Complex Council Chambers, 1400 Schertz Parkway, Building #4, Schertz, Texas. The following members present to -wit: Mayor Michael Carpenter Councilmember Jim Fowler Councilmember Daryl John Staff Present: Deputy City Manager John Bierschwale Executive Director Dudley Wait City Attorney Charles Zech Deputy City Secretary Donna Schmoekel Call to Order Mayor Pro -Tem Edwards called the Invocation and Pledges of Alle Texas (Mayor Pro -Tem Edwards) Mayor Pro -Tem Ed Flags of the United,, Mayor Pro -Tem I this evening. M Citizenshi -D in the • Announc to of Texas. at 6:00 by the Pledges of Allegiance to the •ec grtized,,Camerprt issner with Troop 51 who was in the audience Tern Edwards stated that he was here this evening working on his pity m6 it badge; Mayor Pro -Tem Edwards had Cameron stand to be of upcoming City Events (J. BierschwaleB. James) Mayor Pro - Teldwards recognized Director of Development Services Brian. James who provided the following announcements: • Friday, March 13, 2015, 10:30 a.m. City Manager Conference Room, first of a three part webinar covering bills and issues that affect our City. Other dates are Friday, April 17 and Friday, May 15Th • Tuesday, March 17, 2015, Northeast Partnership and Guadalupe Regional Mayor's Association trip to Austin - Capital, meet at the Livingway Christian Church, 13285 IH 03 -1.0 -2015 Minutes Page -1- 35 North, Live Oak, Texas. Representative Joe Farias has reserved the Member's Lounge for the group from 11:00 a.m. to 2:00 p.m. • Wednesday, March 18, 2015, Corbett Junior High, 6:30 p.m. — this is the first of three Community Budget Meetings. • Thursday, March 19, 2015, 6th Annual "The Taste" All American, Schertz Civic Center, tickets are on sale now. • Thursday, March 19, 2015, . Sippel Elementary School, 6:30 p.m., 2" d Community Budget Meeting. • Thursday, March 26, 2015, Schertz United Methodist:- Church, 6:30 p.m., 3rd Community Budget Meeting. • Announcements and recognitions by City Manager (J Mayor Pro -Tem Edwards recognized City Ma singularly send his appreciation to the PoliCIc they did on the missing child that we had Iasi Lt. Correu who helped organize all those d member of that department and did an outstau the City. Mr. Kessel stated that we actually enforcement agencies that were helping out cc Mr. Kessel also wanted to point out s wanted to use this opportunity as we h stated that we are working on the fa received most of the ihfortuation back we should have' ome initiatstaffina 1e are 50,000 in He is proud to , & where they spent Kessel stated look not itis e Job A staff will be .fillinc it on i allow iousekeeping items they are working on and ►rime olk's here to mention them. Mr. Kessel s' master plan. He stated we have actually staff on,this project. By the end of the week ojections and will also have some other early i much building space we will need when we to make good decisions on this. that we," also kicked off our employee class and compensation study. that we had 229 employees participate and attend the orientation to hour with a. company representative; this was a great turn out. Mr. for the JAT °s, if you are an employee you know exactly what this is, if sesrnent Tool; those will go out next week. This is a critical tool that out and turning back in for evaluation. Mr. Kessel stated, that we also have something that we do regularly which is make available to the . general public the abatements and refunds that we give to the different companies. He stated that what we want to do is put these into our Council books as an informational item so they are of record. These can be searched in our electronic Laser Fiche file on -line 24/7 through the website. He stated that we will have two (2) of these coming out for two (2) different projects: (1) Caterpillar and (2) the Capital Group. These will be available on March 24, 2015. He stated these are projects that were previously approved by Council. He stated that he wanted to make this announcement, normally we would be providing these on March 17, 2015, but that particular meeting is 03 -1.0 -201.5 Minutes Page - 2 - going to be cancelled. He just wanted to make sure that the general public is made aware of the financial transparency. Lastly Mr. Kessel stated that the final item is if you are somewhat bothered by the acoustics in this room, and it is bard to bear, our project does kick off to remodel the acoustics on the building on March 25, 2015. By the next meeting in April we should see that the sound system will be a lot better with a lot less echoing in the room. Mayor Carpen ter arrived at 6:0 7 p. m. Employee Recognition New Employee: Patrick Mays, Code Enforcement Officer, Marshal Services Department. Marshal Mike Harris introduced Patrick, stating he was born in Jackson, Mississippi and moved to Gary, Indiana when he was three years old. After graduating from Lew Wallace High School in 1995, he moved back to Mississippi to start a career in Law Enforcement with the Jackson Police Department where he served for seven years. In 2007 he graduated from Jackson Statue University with a bachelor's degree in criminal justice. He furthered his education by receiving a Master's Degree in counseling studies from Capella University in 2012. After moving to Texas in November 2012, Patrick worked for the Texas Department of Family and Protective Services as a child abuse investigator. Patrick now joins our staff as a Code Enforcement Officer. Patrick introduced his family members who were present this evening. Mayor and Council welcomed Patrick to the city staff. Employee Promotion: David Taylor, Part Time Kennel Tech to full time Shelter Tech, Animal Services Department. Marshal Harris introduced David stating he is married and has six children. He loves the outdoors, hunting and going camping when he can. He has worked security at a military ,installation in Ohio, and he also worked at the water department in Converse, Texas. He moved back to Schertz in 2009 to be near family and began working with the City of Scbertz in January 2015 as a part-time Kennel Tech. David has now accepted the position of Shelter Tech and is now part of our full-time staff. Mayor and Council welcomed David to the team. Employee Achievement: Lt. Steve Pulaski completed the Law Enforcement Management Institute of Texas Leadership Program and he also received his Masters Peace officer Certification from the Texas Commission on Law Enforcement, Marshal Services Department. Mayor Carpenter recognized Marshal Harris who introduced Steve stating that he began his career with the City of Schertz as a reserve officer in February 1995 and was hired full-time in May of 1995. In April of 2000 he left the City for a job with the Schertz Cibolo Universal City ISD Police Department and in 2003 returned as the City's warrant officer. In 2005 the City hired an additional warrant officer and Steve was promoted to 03-10-2015 Minutes Page - 3 - the rank of Corporal to oversee the Warrant Division. In 2007 Steve was promoted to Sergeant. Steve assisted in the creation of the Schertz Marshal's Office in 2008 and has since been promoted to his current rank of Lieutenant. On February 27, 2015, Steve graduated from the Law Enforcement Management Institute of Texas, Leadership Command College (LLC). In the 25 years of LCC's existence only 1,632 peace officers have completed the program out of approximately 76,000 Texas Peace Officers. Steve was awarded his Master Peace Officer certification on February 14, 2015. Steve introduced members of his family who were in the Mayor and Council congratulated Steve on his recent Presentations • Guadalupe Regional Medical Center — Bierschwale /Jerry Riggs) this evening. Assistance Program report. (J. Jerry Riggs who stated on t with Guadalupe Regional ;s program. This program sables them to purchase provision of a prescription cts these qualified citizens' The Hospital will provide prescription medications free of charge or at a low cost to citizens who qualify for assistance under the guidelines established by each drug manufacturer and as 4escrib,ed to the City by the Hospital. The Hospital will comply with all federal, state, county, "and ity, lawn rules, ordinances, and regulations which may A written report will, be provided by the Hospital to the City Council of the City on or about March 1 and September 1 of each year. This report will document that the payments made by the' City have primarily benefitted citizens of the City and will include such information as total number of resident patients served, number of prescriptions filled, retaildollar value of prescriptions, and sources of program funds. The fiscal impact to the City is $5,000 annually. This is a budgeted item. The City's contribution helps pay for the cost of administering the program. Mayor and Council thanked Mr. Riggs for his report and expressed appreciation for his work. Hearing of Residents No one spoke. Discussion and Action Items 03 -1.0 -2015 Minutes Page - 4 - 1. Minutes - Consideration and /or action regarding the approval of the minutes of the Regular Meeting of March 3, 2015. (J. Kessel/B. Dennis) Mayor Carpenter recognized Councilmember Fowler who moved, seconded by Mayor Pro -Tern Edwards to approve the minutes of the Regular Meeting of March 3, 2015. The vote was unanimous with Mayor Pro -Tem Edwards, Councilmembers Fowler, Azzoz, John and Thompson voting for and no one voting no. Motion passed. 2. Resolution No. 1.5 -R -20 — Consideration and/or action the 2014 Annual Racial Profiling Report. Q. Bierschwale The following was read into record: RESOLUTION NO. A RESOLUTION BY THE CITY SCHERTZ, TEXAS AUTHORIZING, RACIAL PROFILING REPORT, CONNECTION THEREWITH Mayor Carpenter recognized Polii Code of Criminal Procedure Articl enforcement agency to submit an ar to the governing body of the munii now being submitted for review and Annual Racial Profiling Retort. Mayor Carpenter, placed on the City we are a Mayor Pro- a Resolution accepting OF THE CITY OF LANCE OF THE 2014 ER MATTERS IN Michael Hansen who stated that the Texas requires the chief "administrator of the law iorf concerning data obtained on traffic stops served. The annual racial profiling report is ;ommend'nnnroval of the results of the 2014 who requested that this report be ve :Councilmember Fowler who stated that this report represents all people and stated that he appreciates all the efforts of the Police Mayor Carpenter recognized Mayor Pro-Tern Edwards who moved, seconded by Councilmember Azzcz to approve Resolution No. 15 -R -20. The vote was unanimous with Mayor Pro -Tem Edwards, Councilmembers Fowler, Azzoz, John and Thompson voting for and no one voting no. Motion passed. 3. Resolution No. 15 -R -21— Consideration and /or action approving a Resolution authorizing a Professional Services Agreement with Lockwood, Andrews & Newnam, Inc., relating to Engineering and Design for the Woodland Oaks Retaining Wall Project. (B. James /K. Woodlee) The following was read into record: 03 -1.0 -2015 Minutes Page - 5 - RESOLUTION NO. 15 -R -21 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING A PROFESSIONAL SERVICES AGREEMENT WITH LOCKWOOD, ANDREWS & NEWNAM, INC., RELATING TO ENGINEERING DESIGN SERVICES FOR THE WOODLAND OAKS RETAINING WALL, AND OTHER MATTERS IN CONNECTION THEREWITH Mayor Carpenter recognized City Engineer Kathy Woodlee who stated a retaining wall constructed of railroad ties exists along the right of way line At'the northwest corner of the intersection of Woodland Oaks and Woodbridge Way. A portion of the wall is currently failing and the remaining section of the wall: is in danger of failure at some point in the future. The wall was constructed between 1 949 and 2003; however no records of its construction are available. Staff engaged on -call engineering firm Lockwood, E perform a boundary survey and condition assssmer confirmed that the wall is primarily located within th assessment of the wall identified that a portion o currently and the remainder will likely fail in the fu1 attached to this memo. The asses meet also identi improper construction. It is uncertain if there was an ws & Newham; :Inc., (LAN) to he wall. The boundary survey ,'sl right of way. The condition wall is in a failure condition. The assessment and survey are khat the cause of the failure is iererl design of the wall. The existence of the retaining wall in its current failed state is an ongoing safety concern and a nuisance from an aesthetic and pedestrian perspective. Removal and replacement of the wall is imperative. Engineering design of a solution to the failing retaining wall is the first step to providing a durable and maintenance free community improvement. Engineering and design cost for the project in the amount of $23,100 to be paid for from the Engineering Department budget for Professional Services. Staff recommends Council approve hiring LAN, Inc., to engineer and design a replacement of the retaining wall on the northwest corner of the intersection of Woodland Oaks and Woodbridge Way. Mayor Carpenter recognized Executive Director Brian James who came forward answering questions from Councilmember Azzoz who expressed his concerns on whether 03 -1.0 -2015 Minutes Page - 6 - or not we were setting precedence and should we have another request of this type would the city be responsible? Mr. James and Ms. Woodlee also addressed corrective measures that are now in place to avoid this in the future. Ms. Woodlee addressed a concern from Mayor Pro -Tem Edwards regarding the use of rail road ties. Mayor Carpenter recognized Mayor Pro -Tem Edwards who moved, seconded by Councilmember Thompson to approve Resolution No. 15 7R -21. The vote was unanimous with Mayor Pro -Tem Edwards, Councilmembers Fowler, Azzoz, John and Thompson voting for and no one voting no. Motioxt passed. 4. Ordinance No. 15 -T -09 — Consideration and/or action approvirtg'an Ordinance authorizing a budget adjustment for the Thoroughfare Plan and Roadway Impact Fee Study in the amount of $130,000.00. First Reading (B. James/K. Woodlee) The following was read into record: ORDINANCE NO. 1 -T -09 A roadway impact fee program will provide a funding mechanism for the implementation of identified capital ;improvements over a 10 -year planning period. In addition to providing a revenue stream, the impact fee program will ensure that new development projects are assessed a fair share of costs for facilities necessitated by new growth. Staff is going to recommend that the City enter into a contract with Freese and Nichols, Inc. (FNI) to conduct this study. The City received responses to the RFQ from two well qualified professional engineering firms. Key City Staff reviewed the submissions and conducted interviews with both. After review of scoring, the City contacted FNI and requested a scope and cost proposal regarding the Thoroughfare Plan Update and Roadway Impact Fee Study. Final negotiations with FNI have been held and the City is ready to proceed with approval of the contract. 03 -1.0 -2015 Minutes Page - 7 - FNI will provide a functional roadway classification system, update the City's roadway design and development standards, review access management standards and provide recommendations for a capital improvements plan of short- and long -term roadway improvement needs. The Plan will be supported through a public process that includes the input of a Steering Committee, public meetings, and a public hearing process for plan adoption. Forecasts prepared during the preparation of the updated Thoroughfare Plan will be used to establish the impact fee Capital Improvement Plan as required by the Texas Local Government Code. A roadway impact fee credit analysis will also be conducted in order to determine the maximum possible cost per,ervice unit. FNI has prepared a proposal to complete the work and the task fees are as follows: roadway systems tt InTY 2013-14,,$,40,000 was`�set aside for this project out of the General Fund. To fully fund the General Fend portio'cif the study of $94,000, an additional $54,000 will need to lie authorized. The ,City is recommending Council recognize an additional $34,392 in collected property tax'ip§ and use $19,608 from the General Fund Contingency to fund the remaining $54,000. The property taxes do not reflect additional taxation on the citizens but the total collections authorized for FY 2014 -15 are coming in higher than expected. Overall there' is ' n ' o expected impact on the fund balance and the General Fund will still plan on returning 308,955 to the fund balance as in the original budget presentation. Another $40,000 was budgeted out of the Water & Sewer Fund in FY 2014 -15. This fund will no longer contribute toward the project and will show an additional $40,000 to be returned to its fund balance. In place of the Water & Sewer Funds contributions the Capital Recovery Water Fund will increase its budget by $116,000 for the Roadway Impact Fee Study in the form of a loan to be paid back by future roadway impact fee collections. 03 -1.0 -2015 Minutes Page - 8 - The cost of the project is $207,950 to be paid for from the Master Thoroughfare Plan and Roadway Impact Fee Study Project Account and the funding for this project will be transferred from the General Fund and the Capital Recovery Water Fund. Ms. Woodlee stated staff recommends Council approve the first reading of Ordinance 15- T-09 to budget an additional $130,000 from the General Fund and the Capital Recovery Water Fund for the Thoroughfare Plan Update and Roadway Impact Fee Study Project. If the Ordinance is approved on first reading, Staff will submit a resolution for awarding the contract with FNI to Council at the next council meeting , alop'with the second reading of this Ordinance. Mayor Carpenter recognized Councilmember A Pro -Tem Edwards to approve Ordinance No. 1. unanimous with Mayor Pro -Tem Edwards,. and Thompson voting for and no one voting ni Roll Call Vote Confirmation Deputy City Secretary Donna Schmoekel provided the roll items 1 through 4. Requests and Announcements 5. Announcements • Ci • Re • NE seconded by Mayor ding. The vote was owler, Azzoz, John passed. information for agenda Mayor Carpenter recognized. City Manager John Kessel who recognized EMS Director Dudley Wait. 1VIr, f�sse1 sate that he wanted to publically announce that Mr. Wait is tint next Executive Director and will be taking over on an interim basis some of the work that puty City Manager John Bierschwale has been doing in preparation of Mr. Bierschwale' s retirement. Mr. Wait will become Executive Director of Public Safety, which will: consist of Police, Fire and EMS and those departments will begin reporting directly to him. 11 He stated that this will take place no later than April I St. Mr. Kessel . stated that we art very pleased with this selection and announcement and congratulated Mr. Wait. Mayor and Council also congratulated Mr. Wait. b. Requests by Mayor and Councilmembers that items be placed on a future City Council agenda. No items requested. 7. Requests by Mayor and Councilmembers to City Manager and Staff for information. 03 -1.0 -2015 Minutes Page - 9 - Mayor Carpenter recognized Mayor Pro -Tem Edwards who stated that the Council had discussed a "Council on the Move Agenda" and we have not had a Council meeting outside of the Chambers in a while and believes it is time to consider this. Mayor Carpenter requested staff place this on the next available agenda for discussion and potential action on holding Council meetings outside the Council Chambers but within the City limits. 8. Announcements by Mayor and Councilmembers • City and community events attended and to be a • City Council Committee and Liaison Assignmez • Continuing education events attended and to be • Recognition of actions by City employees • Recognition of actions by community vo,hmteer; • Upcoming City Council agenda items Mayor Carpenter recognized Mayor Pro' -Tem dwar budget retreat on Friday and it turned into a strategic Pro -Tem Edwards stated it was a great job by all C Edwards also stated that the City ,is going to miss Mayor Pro -Tem Edwards continued in stating the i done a great job and he is looking forward in goi accomplishing the things we discussed; Mayor Pro -T Buffalos wil assignments below) who stated that they had a great anning and realignment. Mayor staff involved. Mayor Pro -Tem f Bierschwale when he retires. :at was great and everyone has out:and seeing that we will be rds also stated that this coming" Friday night our Samuel Clemens ing,,ahe Clear Lake Houston team for a chance to play in the the Alamo Dome for the State Championship. GO BUFFS!! r Pr6-Temn Edwards is being a little bit modest as his son is be playing on Friday. .rcilmember Thompson who concurred with Mayor Pro - the retreat. Compliments to all those involved. also stated that he wanted to recognize Mary Spence and the for their excellent work on the Wilenchik Walk this past Mayor Carpenter recessed the regular meeting at 6:46 p.m. into Executive Session. 9. City Council will meet in closed session under Texas Government Code Section 551.071 Consultation with Attorney to receive advice on legal issues associated with Section 4.07(a) of the City Charter. 03 -1.0 -201.5 Minutes Page - 10 - 1.0. City Council will meet in closed session under section 551.074 Evaluation of the City Secretary and Deputy City Secretary. Reconvene into Regular Session Mayor Carpenter reconvened into Regular session at 7:37 p.m. 9a. 1 Oa. Take any necessary action based on discussions held in closed session under Agenda Item number 9. No action taken. Take any necessary action based on discussions Item number 10 including possible increase in sal, No action taken. Adiournment in As there was no further business the meeting was adjourned t 7 :37 p.m. Brenda Dennis, City S 03 -1.0 -2015 Minutes Page - 11 - under Agenda R. Carpenter, Mayor Agenda No. 2 lei f M40111Ll[e I Ed 1 010 [Q17_1►`111/lu l City Council Meeting: February 24, 2015 Department: Engineering Subject: Ordinance No. 15 -T -09 — An ordinance by the city council of the city of Schertz, Texas authorizing a budget adjustment for the Thoroughfare Plan and Roadway Impact Fee Study in the amount of $130,000.00. (Final Reading) BACKGROUND The purpose of the Master Thoroughfare Plan is to provide a framework of land use and infrastructure which will serve as a guide for the efficient movement of vehicles throughout the growing City. The updated Plan will provide goals and objectives for achieving that efficient movement by providing for public input, evaluating projected growth patterns, and forecasting travel needs through travel demand modeling. A roadway impact fee program will provide a funding mechanism for the implementation of identified capital improvements over a 10 -year planning period. In addition to providing a revenue stream, the impact fee program will ensure that new development projects are assessed a fair share of costs for facilities necessitated by new growth. The City publicly requested qualifications from firms to provide the Professional Engineering services necessary to complete an update of the City's Master Thoroughfare Plan and Transportation Impact Fee Study. Staff is going to recommend that the City enter into a contract with Freese and Nichols, Inc. (FNI) to conduct this study. The City received responses to the RFQ from two well qualified professional engineering firms. Key City Staff reviewed the submissions and conducted interviews with both. After review of scoring, the City contacted FNI and requested a scope and cost proposal regarding the Thoroughfare Plan Update and Roadway Impact Fee Study. Final negotiations with FNI have been held and the City is ready to proceed with approval of the contract. FNI will provide a functional roadway classification system, update the City's roadway design and development standards, review access management standards and provide recommendations for a capital improvements plan of short- and long -term roadway improvement needs. The Plan will be supported through a public process that includes the input of a Steering Committee, public meetings, and a public hearing process for plan adoption. Forecasts prepared during the preparation of the updated Thoroughfare Plan will be used to establish the impact fee Capital Improvement Plan as required by the Texas Local Government Code. A roadway impact fee credit analysis will also be conducted in order to determine the maximum possible cost per service unit. FNI has prepared a proposal to complete the work and the task fees are as follows: Master Thoroughfare Plan: $ 91,910 Roadway Impact Fee Study: $116,040 Contingency: $ 2,050 Total: $210,000 The Capital Recovery Water Fund will provide funding for the Roadway Impact Fee Study portion in the form a loan program of $116,000. The remaining $94,000, the Master Thoroughfare Plan, will be funded through the General Fund. In FY 2013 -14 the General Fund allocated $40,000 toward this project and in FY 2014 -15 Water & Sewer allocated an additional $40,000 for a total of $80,000 that has already been approved. This ordinance will approve the remaining $130,000. City Council approved this on first reading at their meeting of March 1.0, 2015 by a unanimous vote. Goal Approve Ordinance 15 -T -09 to allocate an additional $130,000 for this project. Community Benefit Through proper planning, the City can generate revenue to be used for expansion and improvement of its roadway systems to serve the growing community. Summary of Recommended Action Staff recommends Council approve the first reading of Ordinance 15 -T -09 to budget an additional $130,000 from the General Fund and the Capital Recovery Water Fund for the Thoroughfare Plan Update and Roadway Impact Fee Study Project. FISCAL IMPACT In FY 2013 -14 $40,000 was set aside for this project out of the General Fund. To fully fund the General Fund portion of the study of $94,000, an additional $54,000 will need to be authorized. The City is recommending Council recognize an additional $34,392 in collected property taxes and use $19,608 from the General. Fund Contingency to fund the remaining $54,000. The property taxes do not reflect additional taxation on the citizens but the total collections authorized for FY 2014 -15 are coming in higher than expected. Overall there is no expected impact on the fund balance and the General Fund will still plan on returning $308,955 to fund balance as in the original budget presentation. Another $40,000 was budgeted out of the Water & Sewer Fund in FY 2014 -15. This fund will no longer contribute toward the project and will show an additional $40,000 to be returned to its fund balance. In place of the Water & Sewer Funds contributions the Capital Recovery Water Fund will increase its budget by $116,000 for the Roadway Impact Fee Study in the form of a loan to be paid back by future roadway impact fee collections. The cost of the project is $207,950 to be paid for from the Master Thoroughfare Plan and Roadway Impact Fee Study Project Account and the funding for this project will be transferred from the General Fund and the Capital Recovery Water Fund. RECOMMENDATION Staff recommends Council approve the final reading of Ordinance 1.5 -T -09 to budget an additional $130,000 for the Thoroughfare Plan Update and Roadway Impact Fee Study Project. The funding of which will come from the Genera] Fund and the Capital Recovery Water Fund. ATTACHMENTS Ordinance 15 -T -09 AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING A BUDGET ADJUSTMENT FOR THE THOROUGHFARE PLAN AND ROADWAY IMPACT FEE STUDY IN THE AMOUNT OF $130,000.00; REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT WITH THIS ORDINANCE; AND PROVIDING AN EFFECTIVE DATE WHEREAS, pursuant to Ordinance 14 -T -42, the City of Schertz (the "City") adopted the budget for the City for the fiscal year 2014 -2015 (the "Budge ), which provides funding for the City's operations throughout the 2014 -2015 fiscal year; and WHEREAS, the City needs to increase the funding for the Thoroughfare Plan and Roadway Impact Fee Study amount by $130,000.00 in order to make up the difference between the original budgeted amount of $80,000 and the actual cost negotiated with the professional firm selected for the project; and WHEREAS, the City will fund the Roadway Impact Fee Study as a loan from the Capital Recovery Water Fund instead of the Water & Sewer Fund in the amount of $116,000 to be paid back with a portion of the collected roadway impact fees; and WHERAS, the City will increase the General Fund Budget by $110,392 necessary to fund the remainder of the study and will recognize $34,392 in additional property tax collections and will recognize $76,000 in interfund transfers to cover the increase; and WHEARA, the City shall remove the interfund charge of $40,000 from the Water & Sewer Fund originally budgeted for the study that will now be covered by the Capital Recovery Water fund; and WHEREAS, City staff recommends that the City Council of the City adjust the Budget and approve the increase for FY 2014- 201.5; and WHEREAS, the City Council of the City has determined that it is in the best interest of the City to adjust the Budget and increase the funding amount for FY 2014 -2015; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS: Section 1. The City shall adjust the Budget and increase the General Fund budgeted amount for FY 2014 -201.5 by $110,392, reduce the Water & Sewer Fund budgeted amount by$40,000, and increase the Capital Recovery Water budgeted amount by $116,000. Section 2. The City shall approve a total budget for the Thoroughfare Plan and Roadway Impact Fee Study of $210,000 which will be set aside in the Capital Projects Fund. Section 3. The table below shows the corrected total for the FY 2014 -1.5 Budget: 2014 -2015 Budget General Fund $25,496,480 Water & Sewer $17,768,563 Capital Recovery $652,109 Section 4. The recitals contained in the preamble hereof are hereby found to be true, and such recitals are hereby made a part of this Ordinance for all purposes and are adopted as a part of the judgment and findings of the Council. Section 5. All ordinances and codes, or parts thereof, which are in conflict or inconsistent with any provision of this Ordinance are hereby repealed to the extent of such conflict, and the provisions of this Ordinance shall be and remain controlling as to the matters resolved herein. Section 6. This Ordinance shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. Section 7. If any provision of this Ordinance or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this Ordinance and the application of such provision to other persons and circumstances shall nevertheless be valid, and the City hereby declares that this Ordinance would have been enacted without such invalid provision. Section 8. It is officially found, determined, and declared that the meeting at which this Ordinance is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Ordinance, was given, all as required by Chapter 551, as amended, Texas Government Code. Section 9. This Ordinance shall be effective upon the date of final adoption hereof and any publication required by law. PASSED ON FIRST READING, the 1 Oth day of March, 2015. PASSED, APPROVED and ADOPTED ON SECOND READING, the 24th day of March, 2015. ATTEST: CITY OF SCHERTZ, TEXAS Michael Carpenter, Mayor M Brenda Dennis, City Secretary (CITY SEAL) -3- Agenda No. 3 CITY COUNCIL MEMORANDUM City Council Meeting: March 24, 2015 Department: Finance Department Subject: Resolution No. 15 -R -24 - Comprehensive Annual Financial Report - CAFR Fiscal Year 2013 -14 Presentation and consideration and /or action regarding the Fiscal Year 2013 -14 Comprehensive Annual Financial Report (CAFR) by Debbie Fraser, CPA of Armstrong, Vaughan & Associates. State law requires that local governments complete an annual audit by an independent licensed public accounting firm. COMMUNITY BENEFIT The annual audit provides the community assurance the city is in good financial standing and operating in compliance with generally accepted accounting principles and governmental accounting standards. FISCAL IMPACT None RECOMMENDATION Staff recommends approval of Resolution No. 15 -R -24 regarding the Fiscal Year 2013 -14 Comprehensive Annual Financial Report ATTACHMENTS Resolution No. 15 -R -24 Comprehensive Annual Financial Report 11114 sJuntimirom A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING THE APPROVAL OF THE COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR FISCAL YEAR 2013 -14, AND OTHER MATTERS IN CONNECTION THEREWITH WHEREAS, the City staff of the City of Schertz (the "City ") has recommended that the City Council approve the Comprehensive Annual Financial Report for Fiscal Year 2013 -14 ; and WHEREAS, the Audit Committee has recommended that it is in the best interest of the City to approve the Comprehensive Annual Financial Report for Fiscal Year 2013 -14; and WHEREAS, the City Council has determined that it is in the best interest of the City to approve the Comprehensive Annual Financial Report for Fiscal Year 2013 -14. 1.3711I8 9 a IYi]KFIa07 Al 11I no 1M E 1I11►• LK6I11 0[411wi]011:1aCsi Y1►•Le]MY41 la 1"711I I.1I�AI_ THAT: Section 1. The City Council hereby authorizes the approval of the Comprehensive Annual Financial Report for Fiscal Year 2013 -14. Section 2. The recitals contained in the preamble hereof are hereby found to be true, and such recitals are hereby made a part of this Resolution for all purposes and are adopted as a part of the judgment and findings of the City Council. Section 3. All resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Resolution are hereby repealed to the extent of such conflict, and the provisions of this Resolution shall be and remain controlling as to the matters resolved herein. Section 4. This Resolution shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. Section 5. If any provision of this Resolution or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this Resolution and the application of such provision to other persons and circumstances shall nevertheless be valid, and the City Council hereby declares that this Resolution would have been enacted without such invalid provision. Section 6. It is officially found, determined, and declared that the meeting at which this Resolution is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Resolution, was given, all as required by Chapter 551, Texas Government Code, as amended. Section 7. This Resolution shall be in force and effect from and after its final passage, and it is so resolved. PASSED AND ADOPTED, this 24th day of March, 2015. CITY OF SCHERTZ, TEXAS Michael R. Carpenter, Mayor City Secretary, Brenda Dennis (CITY SEAL) 50506221.1 - 2 - strARE tOLDERS Nancy L Vaughan, CPA Deborah 1°. Fraser, CPA Phil S. Vaughan, CPA To the Audit Committee City of Schertz, Texas e z� z t 1 �,. Vaughan& Associates, PC Certified Public Accountants Communication with Those Charged with Governance We have audited the basic financial statements of the City of Schertz, as of and for the year ended September 30, 2014, and have issued our report thereon dated March 03, 2015. Professional standards require that we advise you of the following matters relating to our audit. Our Responsibility under Generally Accepted Auditing Standards (and Government Auditing Standards) As communicated in our engagement letter dated August 25, 2014, our responsibility, as described by professional standards, is to plan and perform our audit to form and express an opinion about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in conformity with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities. Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control over financial reporting. Accordingly, as part of our audit, we considered the internal control of City of Schertz solely for the purpose of detennining our audit procedures and not to provide any assurance concerning such internal control. We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you. Planned Scope and Timing of the Audit We conducted our audit consistent with the planned scope we previously communicated to you. The timeline for completion of the audit was delayed waiting for the completion of the actuarial study of the City's retiree health insurance plan. Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, as appropriate, and our firm have complied with all relevant ethical requirements regarding independence. 941 West Byrd blvd., Suite 101 - Uni versal City, Texas 781=18 Phone: 210 - 658 -622 Fax 210-659-7611 - Email: vaughan avac a.coni wwiv.avacpa.co Qualitative Aspects of the Entity's Significant Accounting Practices Significant Accounting Policies Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by City of Schertz is included in Note 1 to the financial statements. There have been no initial selection of accounting policies and no changes in significant accounting policies or their application during 2014. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus. Significant Accounting Estimates Accounting estimates are an integral part of the financial statements prepared by management and are based on management's current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management's current judgments. The most sensitive accounting estimates affecting the financial statements are: • Useful lives of capital assets • Allowance for uncollectible receivables for - Water revenues - EMS billings - Property taxes We evaluated the key factors and assumptions used to develop the estimates and determined that they are reasonable in relation to the basic financial statements taken as a whole and in relation to the applicable opinion units. Financial Statement Disclosures Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting City of Schertz's financial statements relate to: Texas Municipal Retirement System. Significant Difficulties Encountered during the Audit We encountered no difficulties in dealing with management relating to the performance of the audit. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the City of Schertz' financial statements or the auditor's report. No such disagreements arose during the course of the audit. Uncorrected and Corrected Misstatements For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Summarized below are uncorrected financial statement misstatements whose effects, as determined by management, are immaterial, both individually and in the aggregate, to the financial statements taken as a whole and each applicable opinion unit. Estimates in the prior period for payables related to the CAD /RMS project with the City of San. Antonio varied from the final invoices received this fiscal year. The resulting differences were recorded in the current year rather than correcting the prior year. This resulted in General Fund administration expenditures being overstated by $94,806 and EMS miscellaneous revenues being overstated by $22,536. Prior year costs related to the City's retiree health insurance plan were recorded in the current year. This results in overstated health insurance expenses of $299,040 spread across multiple opinion units. In addition, professional standards require us to communicate to you all material, corrected misstatements that were brought to the attention of management as a result of our audit procedures. None of the misstatements identified by us as a result of our audit procedures and corrected by management were material, either individually or in the aggregate, to the financial statements taken as a whole or applicable opinion units. Representations Requested from Management We have requested certain written representations from management, which are included in a separate letter dated March 03, 2015. Management's Consultations with Other Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters. Other Matters As a result of our audit for the year ending September 30, 2013, . we had the following suggestions: EMS Revenue Interface: Discussions with City personnel revealed that there may be an interface between the City's EMS billing software (RescueNet) and the City's financial accounting software ( Incode). Currently, EMS billing personnel are entering transactions in triplicate: RescueNet, Incode and a spreadsheet which is necessary to adequately track and reconcile EMS receipts. An interface could eliminate some of this duplicate work, speed up financial reporting of EMS revenues, and provide more controls over EMS receipts. Management should evaluate the cost benefit of an interface with Incode. Status: Management is still evaluating this as an option. Cash Reconciling Items: The City is carrying a significant amount of uncleared items on its bank reconciliation and has additional reconciling items from the old operating account. The volume of oustanding items each month makes it more difficult to review the bank reconciliation for errors. In addition, some of these items may need to be sent to the State as unclaimed property. Management should review cash reconciling items and send unclaimed property to the State. Status: Management has plans to review these items in the Summer of 2015 and research the requirements for unclaimed property. In planning and performing our audit of the financial statements for the current year we became aware of an opporunity to strengthen the City's internal controls with the following suggestion: Water Adjustments: We reviewed a sample of water bill adjustments this year and noted that there was not a good audit trail or approval process for these adjustments. Most of the adjustments were easy to follow by reviewing the customer history; however, a few adjustments were more subjective. Without review, the risk of error or fraud increases. Procedures should be put in place to prevent any one individual from making adjustments without another individual agreeing to the adjustment. The City's accounting software has the capability for one person to create the adjustment and another person to review before it is posted. Public Funds Investment Act As a part of our audit, we review the City's compliance with the Public Funds Investment Act. Our procedures determined that the City is in compliance, in all material effects, with the provisions of the Act. Other Significant Findings or Issues In the nonnal course of our professional association with City of Schertz, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, operating and regulatory conditions affecting the entity, and operational plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as City of Schertz' auditors. Other Information in Documents Containing Audited Financial Statements Pursuant to professional standards, our responsibility as auditors for other information (statistical section) in documents containing City of Schertz' audited financial statements does not extend beyond the financial information identified in the audit report, and we are not required to perform any procedures to corroborate such other information. However, in accordance with such standards, we have read the information and considering whether such information, or the manner of its presentation, was materially inconsistent with its presentation in the financial statements. Our responsibility also includes communicating to you any information which we believe is a material misstatement of fact. Nothing came to our attention that caused us to believe that such information, or its manner of presentation, is materially inconsistent with the information, or manner of its presentation, appearing in the financial statements. 11 New Pronouncements — GASB Statement No. 68 The Governmental Accounting Standards Board has approved Statement No. 68, Accounting and Financial Reporting for Pensions — an amendment of GASB Statement No. 27, with implementation in periods beginning after June 15, 2014. The statement established accounting and financial reporting for employers with defined benefit pensions. For the first time, a net pension liability (or asset); defined as the net of assets held in trust for pension benefits net of a total pension liability; will be recognized on the statement of net assets (net position). For the most recent valuation at December 31, 2013, the total pension liability was $15.1 million. Any annual changes will flow to the statement of activities. There are many provisions of the statement that will affect the City of Schertz. Required note disclosures will include ten years of data as supplementary information. We recommend the City become familiar with the new statement provisions and the potential effect implementation will have on the government -wide statement of net assets (position). Trend Analysis We have prepared the attached "Trend Analysis" as a financial planning tool for council and staff. Sound financial management dictates that a minimum fund balance be maintained that is sufficient to ensure operations will continue uninterrupted and emergencies that arise from time to time will be met. A rule of thumb for a minimum fund balance for the general fund is three to six months average operating expenditures (exclusive of capital outlay and debt service expenditures). The attachment details the trends over the last five years. This is presented for additional analysis and as a planning tool. We make no recommendation regarding the analysis of this information. This report is intended solely for the information and use of the Audit Committee, City Council, and management of City of Schertz and is not intended to be and should not be used by anyone other than these specified parties. Armstrong, Vaughan & Associates, P.C. March 03, 2015 5 CITY OF SCHERTZ, TEXAS TREND ANALYSIS 9/30/10 9/30/11 9/30/12 9/30/13 9/30/14 GENERAL GOVERNMENT FUND BALANCE - GENERAL FUND (1) $ 1,372,779 $ 1,899,105 $ 2,560,667 $ 4,206,735 $ 5,587,262 AVERAGE MONTHLY OPERATING EXPENDITURES (2) 1,343,549 1,447,091 1,527,915 1,570,338 1,628,274 GROWTH RATE PER YEAR - AVERAGE MONTHLY OPERATING EXPENDITURES 5.8% 7.7% 5.6% 2.8% 3.7% # MONTHS AVERAGE EXPENDITURES IN FUND BALANCE 1.0 1.3 1.7 2.7 3.4 GENERAL BONDED DEBT (NET OF DEBT SERVICE RESERVES) 48,819,435 55,298,550 60,973,626 60,499,568 56,803,499 RATIO OF GENERAL BONDED DEBT TO FUND EQUITY 35.6/1 29.1/1 23.8/1 14.4/1 10.2/1 (1) Includes unassigned fund balance only (2) Exclusive of Capital Outlay and Debt Service Expenditure 9 CITY OF SCHERTZ, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED SEPTEMBER 30, 20]4 OFFICIALS ISSUING REPORT John C. Kessel City Manager Juan F. Santoya, Jr. Director of Finance rr CITY OF SC0FD{TZ,TEXA8 TABLE 0PCONTENTS SEPTEMBER 3O,2014 INTRODUCTORY SECTION ......................................................................................................... iii LETTER [)F TRANSMITTAL ----------------------------------------iv CITYOFFICIALS ............................................................................................................................................ ir ORGANIZATIONAL CruAu/ ----------------------------------------.x CERTIFICATE OF ACHIEVEMENT ------------------------------------.xi FINANCIAL SECTION B/\8[C FINANCIAL STATEMENTS ------------------------------------|4 STATl�D�By�T(}FyJET9()SlTl(}�� .]5 STATEMENT ()F ACTIVITIES ................................................................................................................. 17 BALANCE SHEET - GOVERNMENTAL FDN[)S---------------------------' 19 RECONCILIATION OF BALANCE SHEET ............................................................................................. 2] STATEMENT {)FREVENUES, EXPENDITURES, /\ND CHANGES IN FUND BALANCES - 9LNlJS.................................................................................................................... 22 RECONCILIATION OF THE STATEMENT OF REVENUES, GOVERNMENTAL FUNDS TO THE STATEMENT (}9 ACTIVITIES ...................................................................................................... 24 STATEMENT [)F NET POSITION - PROPRIETARY FUNDS ................................................................ 25 STATEMENT (}F REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION - PROPRIETARY FUNDS .......................................................................................................................... 27 NOTES TO BASIC FINANCIAL STATEMENTS ........................................................................................ 30 SCl{E[DJLB OF QB\/ENLUBB` EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - GENERAL FUND ...................................................................................... 57 SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - ECONOMIC DEVELOPMENT CORPORATION '''''''''''----'56 NOTES TO SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES BN FUND BALANCE - BUDGET AND ACTUAL .'''''''''''''''''''''''''''''''''''''''------0O TEXAS MUNICIPAL RETIREMENT SYSTEM - ANALYSIS OF FUNDING PROGRESS ..................6| RETIREE HEALTH INSURANCE PLAN - ANALYSIS OF FUNDING PROGRESS 62 SUPPLEMENTARY INFORMATION -----------------------------------.63 COMPARATIVE BALANCE SHEETS - GENERAL FUND .................................................................... 64 COMPARATIVE STATEMENTS ()pREVENUES, EXPENDITURES AND CHANGES IN FLDNTJ BALANCE-(]ENEB'ALF\TNI) ............................................................................................................... 65 COMPARATIVE BALANCE SHEETS - ECONOMIC DEVELOPMENT CORPORATION .................. 62 COMPARATIVE STATEMENTS (]F REVENUES, EXPENDITURES AND CHANGES DqFUND i CITY OF SCHERTZ, TEXAS TABLE OF CONTENTS (CONTINUED) SEPTEMBER 30, 2014 FINANCIAL SECTION (Continued) PAGE COMPARATIVE BALANCE SHEETS - DEBT SERVICE FUND ........................................................... 68 SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - FUND BALANCES - GOVERNMENTAL FUNDS .............................................................................................. BUDGET TO ACTUAL - DEBT SERVICE FUND ................................................................................... 69 COMPARATIVE BALANCE SHEETS - CAPITAL PROJECTS FUND .................................................. 66 COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND TOTAL WATER AND SEWER CONSUMPTION AND RATES .......................................................... BALANCE - CAPITAL PROJECTS FUND ............................................................................................ 67 COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS .................................... 72 COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND 98 BALANCES — NONMAJOR GOVERNMENTAL FUNDS .................................................................... 74 SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - 100 BUDGET TO ACTUAL - HOTEL OCCUPANCY FUND ...................................................................... 76 SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - 102 BUDGET TO ACTUAL - PARK FUND .................................................................................................. 77 SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL - TREE MITIGATION FUND .......................................................................... 78 SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - 107 BUDGET TO ACTUAL - POLICE FORFEITURES FUND ................................................................... 79 SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - 109 BUDGET TO ACTUAL - LIBRARY ADVISORY BOARD .................................................................. 80 SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL - HISTORICAL COMMITTEE FUND ............................................................ 81 SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL - PARKS AND RECREATION FOUNDATION ............................................ 78 STATISTICAL SECTION NET POSITION, BY COMPONENT ............................................................................................................ 84 CHANGEIN NET POSITION ....................................................................................................................... 86 FUND BALANCES - GOVERNMENTAL FUNDS .............................................................................................. 90 CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS .............................................................. 92 TAX REVENUE BY SOURCE — GOVERNMENTAL FUNDS ................................................................... 94 TOTAL WATER AND SEWER CONSUMPTION AND RATES .......................................................... 95 PRINCIPAL WATER AND SEWER CONSUMERS - ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY ........................................................................................ 97 DIRECT AND OVERLAPPING PROPERTY TAX RATES ....................................................................... 98 PRINCIPAL PROPERTY TAX PAYERS ...................................................................................................... 99 PROPERTY TAX LEVIES AND COLLECTIONS ..................................................................................... 100 TAXABLE ASSESSED VALUE .................................................................................................................. 101 RATIOS OF OUTSTANDING DEBT BY TYPE ........................................................................................ 102 RATIOS OF GENERAL BONDED DEBT OUTSTANDING ............................................................... 104 DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT - DEBT MARGIN INFORMATION........................................................................................................................................ 106 PLEDGED REVENUE COVERAGE ........................................................................................................... 107 DEMOGRAPHIC AND ECONOMIC STATISTICS ................................................................................... 108 TOP TEN PRINCIPAL EMPLOYERS ......................................................................................................... 109 FULL-TIME EQUIVALENT CITY GOVERNMENTAL EMPLOYEES BY FUNCTION ....................... 110 ii CITY OF SCHERTZ, TEXAS TABLE OF CONTENTS (CONTINUED) SEPTEMBER 30, 2014 STATISTICAL SECTION (Continued) PAGE OPERATING INDICATORS BY FUNCTION /PROGRAM ........................................ ............................... 111 CAPITAL ASSET STATISTICS BY FUNCTION/ PROGRAM ................................... ............................... 113 COMPLIANCE SECTION 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 AUDITING STANDARDS ................... ............................... 116 iii INTRODUCTORY SECTION IV March 03, 2015 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, 2014. 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, 2014, 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, 2014, 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. 1400 Schertz Parkway Schertz, Texas 78154 ° 210.619.1000 schermcom u 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 32.21 square miles with a population of 36,477 in 2014. 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, EMS services, the construction and maintenance of streets, recreational facilities, cultural events, water and sewer services. The annual budget and five -year forecast serve as the foundation for the City of Schertz's financial planning and control. All city departments 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 the proposed budget to the council . for review before August 1st. The council then holds public hearings and community meetings on the proposed budget and to adopt a final budget by September 30th. The fiscal year for Schertz is from October 1 through September 30. 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 departments and funds with 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 pages 57 -58 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. vi Local economy. The City of Schertz enjoys a favorable economic environment and leading indicators point to continued growth. In December 2014, the unemployment rate was 3.1 %. Within a 15 mile radius, the labor market includes a workforce of approximately 331,000 well trained workers and this number is expected to increase in the next several years as the region continues to experience population and business growth. Local indicators point to a strong and growing housing market. The City planned well and has an abundant water supply for meeting its future growth. In the last few years, four Fortune 1.00 companies have made major investments in Schertz. These four companies include General Electric, Caterpillar, Amazon.com and SYSCO. General Electric purchased Salof Companies which designs and manufactures small scale liquefied natural gas technologies and occupies a 390,935 square foot facility in Schertz. The purchase of Salof will allow General. Electric to expand their worldwide capabilities in the liquefied natural gas industry. Amazon.com completed construction of their $166 million fulfillment center on 96 acres in Schertz in time for the 2013 holiday season. The fulfillment center has 1.26 million square feet and is the largest facility in Schertz and in Guadalupe County. The new fulfillment center has 674 new full - time jobs with an annual payroll of $1.1 million. SYSCO completed their 630,000 square foot distribution facility in January 2012 and employs 810 full -time staff. This is a regional distribution center for SYSCO. In addition, Baptist Emerus Emergency Hospital completed construction on its new $11 million facility in April 2013. Businesses with headquarters or divisions located within the city or in close proximity include Vision Works, Brandt Engineering, Cal -Tex Protective Coatings, Inc., CST Distribution which was formerly Valero, FedEx Freight, Marshall Shredding Company, Kraft Nabisco, Republic National Distributing Company, Caterpillar, Wal -Mart, and H.E.B. Long -term financial planning. The community approved bond propositions in November 2010 for quality of life projects which included a swimming pool, improvements to the baseball fields and soccer fields, building a new animal adoption facility, and improvements to Main Street. The animal adoption facility was completed and operational in March 2014. The baseball field improvements were also completed in spring 2014. . Completion of the soccer fields is scheduled for the mid -year 2015. Design work was completed for the aquatic facility and selection of a Construction Manager at Risk was made in early 2015. Main Street improvements continue to be developed. Financial Information: Internal Control. Management is responsible for establishing and maintaining internal controls designed to ensure that assets of the City are protected from loss, theft or misuse and to provide adequate accounting information compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles for local governments as prescribed by the Governmental Accounting Standards Board (GASB), the Financial Accounting Standards Board (FASB) and the American Institute of Certified Public Accountants (AICPA). The internal control system is designed to provide reasonable, but not absolute assurance that these objectives are met. The concept of reasonable assurance recognizes that the cost of an internal control should not exceed the benefits derived from the internal control. The City utilizes financial accounting software which is designed with a system of internal controls. These controls are continually being reevaluated to provide reasonable, but not absolute, assurances. vli Budget Controls. The City also utilizes budgetary controls. Legally expenditures cannot exceed the appropriated amount. The objective of these budgetary controls is to ensure compliance with the adopted budget approved by the City Council as mandated by the city charter and state law. The levels of budgetary control are established at the line -item basis and at the fund level. 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 1.25 years. The average yield on the investment portfolio was .25 percent. Active involvement in investment instruments 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 2014, . 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 -party 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 benefits. The City of Schertz is a member city of the Texas Municipal Retirement System, referred to as TMRS. TMRS is one of the leading public pension funds in the nation. 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. Other Financial Information: Independent Audit. An independent audit is performed every year of the general ledger, accounts, financial records, and transactions of all city departments. The audit is completed by an independent certified public accounting firm selected by the City Council. The City is in compliance with this requirement and the independent auditor's report by Armstrong, Vaughan, P.C. Certified Public Accountants, has been included in this report. 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, 2013. . This was the 29th 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. viii 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, 00�voor John C. Kessel City Manager ix CITY OF SCHERTZ, TEXAS CITY OFFICIALS MAYOR MICHAEL CARPENTER. MAYOR PRO -TEM DARYL JOHN CITY COUNCIL DAVID SCAGLIOLA CEDRIC EDWARDS, SR. 1► krd Ism I WiA11 JIM FOWLER CITY MANAGER JOHN C. KESSEL DIRECTOR OF FINANCE JUAN F. SANTOYA, JR. CITY ATTORNEY CHARLES ZECH, DENTON, NAVARRO, ROCHA, BERNAL, HYDE & ZECH, P.C. .2111 %t41D1TO _?4TI`yYZM[f %rilil'. /_ \`►�F:?./_F.Y.Y�7 /_Ill f.` � x • *Appointed by City Council xi Govern, mere. Finance Officers Association Presented'to Financial Wport f6r tk Fiwal Ydw E�ded Executivc DirwtorICEO xii FINANCIAL SECTION StrARE tOLDERS Nancy 1.. Vaughan, CPA Deborah E Fraser, CPA Phil S. Vaughan, CPA To the Honorable Mayor and Members of the City Council City of Schertz, Texas e z� z t 1 �,. Vaughan& Associates, IBC: Report on the Financial Statements Certified Public Accountants We have audited the accompanying financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of City of Schertz, as of and for the year ended September 30, 2014, and the related notes to the financial statements, which collectively comprise City of Schertz's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements City of Schertz's management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express 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 from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 941 West Byrd Blvd., Smite 101, . Universal City, Texas 78148 Phone: 210 - 658 -6229 . Fax: 210 - 639 -7 11 - email: vaughan @avac a,com # wwwavacpa:xor 2 Opinions 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, each major fund, and the aggregate remaining fund information of City of Schertz, as of September 30, 2014, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that management's discussion and analysis, budgetary comparison information, and schedule of funding progress, as listed in the table of contents, 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. The budgetary comparison information is the responsibility of management and was derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has 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 accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the budgetary comparison information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. We have applied certain limited procedures to the management's discussion and analysis and schedule of funding progress in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the 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 management's discussion and analysis and schedule of funding progress because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise City of Schertz's basic financial statements. The combining and individual nonmajor fund financial statements, introductory section, and statistical section 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 are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has 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 accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 03, 2015 on our consideration of City of Schertz's 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 internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City of Schertz's internal control over financial reporting and compliance. Armstrong, Vaughan & Associates, P.C. March 03, 2015 29 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, 2014. We encourage readers to consider the information presented here in 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 $151.9 million (net position). Of this amount, $25.1 million (unrestricted net position) may be used to meet the City's ongoing obligations to citizens and creditors. The City's total net position increased by $15.0 million. A significant portion of this increase, 57 %, 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 $27.4 million, a decrease of $3.0 million in comparison with the prior year. At the end of the fiscal year, the combined total of the General Fund assigned and unassigned fund balances was $6.3 million which is 32% of the general fund expenditures not including capital outlay. The fund balance policy is to have a 25% balance. During the fiscal year, the City issued $10.6 million in general obligation refunding bonds and $5.0 million in certificates of obligation for water and sewer improvements. 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 position presents information on all of the City's assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position 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 position changed during the most recent fiscal year. All changes in net position 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. 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 fiends 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 fiend balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund, the debt service fund, the economic development corporation and the capital projects fund, all of which are considered to be major funds. Data from the other seven governmental funds are combined into a single, aggregated presentation. Individual fiend data for each of these non -major governmental funds is provided in the form of combining statements elsewhere in 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 fiends 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. 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. 0 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. The economic development corporation also adopts an annual budget, and a comparison schedule for it also is provided in the required supplementary information. The combining statements referred to earlier in connection with non -major governmental funds are presented immediately following the required supplementary information. Government -wide Financial Analysis As noted earlier, net position 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 $151.9 million at the close of the most recent fiscal year. The largest portion of the City's total net position (77 %) reflects its net 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. An additional portion of the City's total net position (7 %) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position, $25.1 million, 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 position, 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. TABLE A -1. NET POSITION 0 Governmental Activities Business -Type Activities Total 2014 2013 2014 2013 2014 2013 Current and Other Assets $ 32,058,111 $ 34,732,826 $ 22,393,677 $ 15,115,524 $ 54,451,788 $ 49,848,350 Capital Assets 111,550,067 102,042,076 64,553,475 61,785,399 176,103,542 163,827,475 Total Assets 143,608,178 136,774,902 86,947,152 76,900,923 230,555,330 213,675,825 Deferred Outflows 969,012 423,735 146,807 112,125 1,115,819 535,860 Current Liabilities 7,021,924 6,585,918 4,011,930 3,195,714 11,033,854 9,781,632 Long -Term Liabilities 55,747,628 58,635,329 12,956,604 8,843,216 68,704,232 67,478,545 Total Liabilities 62,769,552 65,221,247 16,968,534 12,038,930 79,738,086 77,260,177 Net Investment in Capital Assets 62,792,671 57,543,618 53,674,437 53,071,836 116,467,108 110,615,454 Restricted 10,401,728 7,788,354 - - 10,401,728 7,788,354 Unrestricted 8,613,239 6,645,418 16,450,988 11,902,282 25,064,227 18,547,700 Total Net Position $ 81,807,638 $ 71,977,390 $ 70,125,425 $ 64,974,118 $ 151,933,063 $ 136,951,508 0 The government's net position increased by $15.0 million during the current fiscal year. Fifty -seven percent of this increase represents capital contributions from developers. The following table indicates changes in net position for governmental and business -type activities followed by graphs displaying total revenues and expenses by type: TABLE A -2 CHANGES IN NET POSITION FOR GOVERNMENTAL AND BUSINESS -TYPE ACTIVITIES $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 TOTAL REVENUES- GOVERNMENT -WIDE Charges for Operating Capital Grants Property Taxes Other Taxes Unrestricted Miscellaneous Services Grants and and Investment Contributions Contributions Earnings ®iota ®ZOf Governmental Activities Business -Type Activities Total Revenues: 2014 2013 2014 2013 2014 2013 Program Revenues: Charges for Services $ 5,771,078 $ 5,812,650 $ 23,681,625 $ 22,401,117 $ 29,452,703 $ 28,213,767 Operating Contributions 220,264 234,084 - - 220,264 234,084 Capital Contributions 5,756,456 1,531,740 2,809,110 1,301,235 8,565,566 2,832,975 General Revenues - Property Taxes 12,794,172 12,359,146 - - 12,794,172 12,359,146 Other Taxes 13,219,031 11,851,864 - - 13,219,031 11,851,864 Investment Earnings 43,279 54,270 31,810 53,088 75,089 107,358 Miscellaneous 180,316 505,268 609,003 419,331 789,319 924,599 Total Revenues 37,984,596 32,349,022 27,131,548 24,174,771 65,116,144 56,523,793 Expenses: General Government 6,958,530 6,913,524 - - 6,958,530 6,913,524 Public Safety 10,025,703 9,567,595 - - 10,025,703 9,567,595 Public Environment 3,740,538 3,622,834 - - 3,740,538 3,622,834 Parks and Recreation 1,807,136 1,807,559 - - 1,807,136 1,807,559 Cultural 870,159 907,676 - - 870,159 907,676 Health 407,114 344,647 - - 407,114 344,647 Administration 1,942,312 1,333,219 - - 1,942,312 1,333,219 Interest and Other Fees 2,352,856 3,340,951 - - 2,352,856 3,340,951 Water and Sewer - - 17,762,116 16,954,870 17,762,116 16,954,870 EMS - - 4,268,125 3,959,445 4,268,125 3,959,445 Total Expenses 28,104,348 27,838,005 22,030,241 20,914,315 50,134,589 48,752,320 INCREASE IN NET POSITION BEFORE TRANSFERS 9,880,248 4,511,017 5,101,307 3,260,456 14,981,555 7,771,473 Transfers (50,000) 25,140 50,000 (25,140) - - CHANGE IN NET POSITION $ 9,830248 $_4,536 157 $ 5,151,307 $ 3,235,316 $ 14,981,555 $ 7,771,473 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 TOTAL REVENUES- GOVERNMENT -WIDE Charges for Operating Capital Grants Property Taxes Other Taxes Unrestricted Miscellaneous Services Grants and and Investment Contributions Contributions Earnings ®iota ®ZOf 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 TOTAL EXPENSES - GOVERNMENT -WIDE General Public Safety Public Parks and Cultural Health Interest and Government Environment Recreation Administration Other Fees Revenues- Governmental Activities (Continued) General Revenue by Source -Governmental Activities Misc< Occupancy Tay Franchise Tay M, 3% lnvestr� ^aj Earnin 0 Tay, 59% Business -Type Activities Business -Type activities accounted for 34% of the growth in the net position of the City of Schertz. Of this increase, 19% is the result of capital contributions from developers. For the most part, increases in expenses closely paralleled inflation and the change in revenues was primarily related to fluctuations in capital contributions from developers. 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 $20,000,000 $18,000,000 $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $(2,000,000) 2014 2013 Water and Sewer Utilities EMS 10 Financial Analysis of the Government's Funds 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, unassigned 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 $27.4 million. Of this total amount, $5.6 million constitutes unassigned fund balance, which is available for spending at the government's discretion. The remainder of fund balance is non - spendable, restricted, or assigned 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 assigned purposes. The general fund is the chief operating fund of the City of Schertz. At the end of the current fiscal year, unassigned fund balance of the general fund was $5.6 million, while total fund balance was $7.7 million, an increase of $1.7 million from the prior year. As a measure of the general fund's liquidity, it may be useful to compare both unassigned fund balance and total fiend balance to total fund expenditures. Unassigned fund balance represents 28% of total general fund expenditures, not including capital. The debt service fund has a total fund balance of $0.6 million all of which is restricted for the payment of debt service. The net increase in fund balance during the current year in the debt service fund was $0.1 million. The capital projects fund has a total fund balance of $9.6 million, a decrease of $6.8 million. No new governmental bonds were issued this year, so the activity in the capital projects fund is primarily the expenditures of prior bond issuances. 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 position of the water and sewer fund at the end of the year amounted to $15.3 million and those for the Schertz EMS fund amounted to $1.1 million. General Fund Budgetary Highlights The General Fund expenditures were $1.4 million less than the $21.3 million budget. This was the result of cost savings across most of the General Fund. Revenues were higher by $0.6 million than budgeted. Overall, the fund balance increased by $1.7 million higher than budgeted. The original budget was amended during the year to increase total expenditures by less than 2 %. 11 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, 2014, amounts to $176 million (net of accumulated depreciation). Developers contributed $8.6 million in infrastructure during the year. The City also has several projects in progress from voter approved bonds. Additional information on the City's capital assets can be found in the note 6 to the basic financial statements. TABLE A -3 CAPITAL ASSETS (Net of Depreciation) Governmental Activities Business -Type Activities Total Long -Term Debt. At the end of the current fiscal year, the City of Schertz had total bonded debt outstanding of $70.9 million. During the fiscal year, the City issued $10.0 million in refunding bonds and $5.0 million certificates for water and sewer improvements. The related principal and interest payment for the bonds are backed by an annual ad valorem tax levied against all taxable property within the City. The City of Schertz maintains a "AA" rating from Standard and Poors. Additional information on the City's long -term debt can be found in note 9 to the basic financial statements. TABLE A -4 2014 2013 2014 2013 2014 2013 Land $ 7,445,117 $ 7,445,117 $ 1,267,852 $ 1,254,524 $ 8,712,969 $ 8,699,641 Water Rights - - 70,245 70,245 70,245 70,245 Buildings and Improvements 39,116,202 35,471,337 4,660,001 4,660,001 43,776,203 40,131,338 Machinery, Equipment, - 2,215,000 - 2,215,000 Tax Notes and Leases 1,585,000 2,155,000 and Vehicles 8,162,722 6,354,680 3,640,274 3,051,206 11,802,996 9,405,886 Infrastructure 87,983,067 81,758,702 77,985,687 75,176,577 165,968,754 156,935,279 Construction in Progress 4,995,655 3,161,422 1,651,694 365,904 6,647,349 3,527,326 Accumulated Depreciation (36,152,696) (32,149,182) (24,722,278) (22,793,058) (60,874,974) (54,942,240) TOTALS $ 111,550,067 $102,042,076 $ 64,553,475 $ 61,785,399 $176,103,542 $ 163,827,475 Long -Term Debt. At the end of the current fiscal year, the City of Schertz had total bonded debt outstanding of $70.9 million. During the fiscal year, the City issued $10.0 million in refunding bonds and $5.0 million certificates for water and sewer improvements. The related principal and interest payment for the bonds are backed by an annual ad valorem tax levied against all taxable property within the City. The City of Schertz maintains a "AA" rating from Standard and Poors. Additional information on the City's long -term debt can be found in note 9 to the basic financial statements. TABLE A -4 12 Governmental Business -Type Activities Activities Total 2014 2013 2014 2013 2014 2013 General Obligation Bonds $55,300,000 $58,060,000 $ 3,960,000 $ 2,120,000 $59,260,000 $60,180,000 Certificates of Obligation 543,934 801,767 9,436,066 5,048,234 9,980,000 5,850,001 Revenue Bonds - - - 2,215,000 - 2,215,000 Tax Notes and Leases 1,585,000 2,155,000 65,000 130,000 1,650,000 2,285,000 TOTALS $57,428,934 $61,016,767 $13,461,066 $ 9,513,234 $70,890,000 $70,530,001 12 Economic Factors and Next Year's Budgets and Rates At the end of the last fiscal year, the assigned and unassigned fund balance in the general fund increased to $6.3 million. The City of Schertz has not appropriated any portion of this amount for spending in the 2015 fiscal year budget. The intention is to build up the assigned and unassigned fund balance to 3 to 6 months of operating expenses. Each year the City updates its five -year budgeting forecast and has implemented a long term debt model to assist management in making informed financial decisions that will impact the community now and in the future. 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. 13 rr BASIC FINANCIAL STATEMENTS 14 CITY OF SCHERTZ, TEXAS STATEMENT OF NET POSITION SEPTEMBER 30, 2014 ASSETS Current Assets: Cash and Cash Equivalents Investments Receivables (net of allowances) Taxes Accounts and Other Accrued Interest Income Prepaid Expenses Inventories Internal Balances Total Current Assets Noncurrent Assets: Restricted Assets: Cash and Cash Equivalents Investments Capital Assets: Land Water Rights Buildings and Improvements Equipment and Vehicles Infrastructure Construction in Progress Accumulated Depreciation Total Noncurrent Assets TOTAL ASSETS DEFERRED OUTFLOWS OF RESOURCES Deferred Loss on Debt Refundings TOTAL DEFERRED OUTFLOWS OF RESOURCES Primary Government Governmental Business -Type Activities Activities Total $ 2,992,700 25,054,620 2,399,734 1,987,983 1,888 21,735 88,518 (91 4,931) 31,632,247 425,864 7,445,117 39,1.1.6,202 8,1.62,722 87,983,067 4,995,655 (36,152,696) 111,975,931 143,608,178 $ 1,987,332 2,742,995 4,486,025 3,1.1.4 1,950 124,1.83 91.4,931 10,260,530 2,065,094 10,068,053 1,267,852 70,245 4,660,001 3,640,274 77,985,687 1,651,694 (24,722,278) 76,686,622 86,947,152 $ 4,980,032 27,797,615 2,399,734 6,474,008 5,002 23,685 212,701 41,892,777 2,490,958 1.0,068,053 8,712,969 70,245 43,776,203 1.1,802,996 165,968,754 6,647,349 (60,874,974) 188,662,553 230,555,330 969,012 146,807 1,115,819 $ 969,012 See Accompanying notes to basic financial statements. 15 $ 146,807 $ 1,115,819 CITY OF SCHERTZ, TEXAS STATEMENT OF NET POSITION (CONTINUED) SEPTEMBER 30, 2014 Noncurrent Liabilities: Compensated Absences 693,439 Primary Government 886,783 Net Other Post - Employment Benefit Payable Governmental Business -Type 364,906 Long -Term Debt Activities Activities Total LIABILITIES 55,747,628 1.2,956,604 68,704,232 Current Liabilities: TOTAL LIABILITIES 62,769,552 Accounts Payable $ 1,753,083 $ 1,729,321 $ 3,482,404 Accrued Liabilities 476,859 157,840 634,699 Due to Other Governments 205,303 - 205,303 Unearned Revenue 28,284 305,651 333,935 Accrued Interest Payable 377,209 68,004 445,213 Compensated Absences 173,360 48,336 221,696 Customer Deposits 42,513 486,814 529,327 Current Portion of Long -Term Debt 3,965,313 1,215,964 5,181,277 Total Current Liabilities 7,021,924 4,011,930 11,033,854 Noncurrent Liabilities: Compensated Absences 693,439 193,344 886,783 Net Other Post - Employment Benefit Payable 279,765 85,141 364,906 Long -Term Debt 54,774,424 1.2,678,119 67,452,543 Total Noncurrent Liabilities 55,747,628 1.2,956,604 68,704,232 TOTAL LIABILITIES 62,769,552 16,968,534 79,738,086 NET POSITION Net Investment In Capital Assets 62,792,671 53,674,437 116,467,108 Restricted For: Police and Municipal Court 1,157,723 - 1,157,723 PEG Capital Fees 489,509 - 489,509 Tourism Development 501,996 - 501,996 Economic Development 7,193,388 - 7,193,388 Parks and Tree Mitigation 663,860 - 663,860 Debt Service 317,1.54 - 317,1.54 Other Purposes 78,098 - 78,098 Unrestricted 8,613,239 16,450,988 25,064,227 TOTAL NET POSITION $ 81,807,638 $ 70,125,425 $ 1.51,933,063 See Accompanying notes to basic financial statements. 16 CITY OF SCHERTZ, TEXAS STATEMENT OF ACTIVITIES FOR THE YEAR ENDED SEPTEMBER 30, 2014 Functions and Programs Expenses Primary Government: Governmental Activities: General Government Public Safety Public Environment Parks and Recreation Cultural Health Administration Interest Total Governmental Activities Business -Type Activities Water and Sewer EMS Total Business -Type Activities Total Primary Government General Revenues: Taxes: Ad Valorem Sales Franchise Fees Hotel /Motel Mixed Drink Investment Earnings Miscellaneous Total General Revenues Transfers Change in Net Position Net Position at Beginning of Year Net Position at End of Year Program Revenues Operating Capital Charges for Grants and Grants and Services Contributions Contributions $ 6,958,530 $ 1,974,637 $ 6,725 $ 5,749,198 10,025,703 2,536,476 28,705 4,863 3,740,538 - - - 1,807,136 917,639 163,799 - 870,159 309,897 7,467 - 407,1.14 32,429 13,568 2,395 1,942,312 - - - 2,352,856 - - - 28,104,348 5,771,078 220,264 5,756,456 17,762,116 19,147,872 - 2,809,110 4,268,125 4,533,753 - - 22,030,241 23,681,625 - 2,809,110 $ 50,134,589 $ 29,452,703 $ 220,264 $ 8,565,566 See Accompanying notes to basic financial statements. 17 Net (Expense) Revenue and Changes in Net Position Primary Government Governmental Business -Type Activities Activities Total $ 772,030 (7,455,659) (3,740,538) (725,698) (552,795) (358,722) (1,942,312) (2,352,856) (16,356,550) $ 4,194,866 265,628 4,460,494 $ 772,030 (7,455,659) (3,740,538) (725,698) (552,795) (358,722) (1,942,312) (2,352,856) (16,356,550) 4,194,866 265,628 4,460,494 (16,356,550) 4,460,494 (11,896,056) 12,794,172 - 12,794,172 10,553,382 - 10,553,382 2,073,162 - 2,073,162 552,570 - 552,570 39,917 - 39,917 43,279 31,810 75,089 180,316 609,003 789,319 26,236,798 640,813 26,877,611 (50,000) 50,000 - 9,830,248 5,1.51,307 14,981,555 71,977,390 64,974,118 136,951,508 $ 81,807,638 $ 70,125,425 $ 151,933,063 18 CITY OF SCHERTZ, TEXAS BALANCE SHEET — GOVERNMENTAL FUNDS SEPTEMBER 30, 2014 Assigned for: Property Replacement 694,916 - Special Events 31,177 - Unassigned 5,587,262 - - Total Fund Balances 7,722,034 9,631,746 625,435 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES $ 11,865,702 $ 10,877,234 $ 728,105 See Accompanying notes to basic financial statements. 19 General Capital Debt Fund Projects Service ASSETS Cash and Cash Equivalents $ 734,684 $ 1,084,721 $ 34,988 Investments 6,895,148 9,792,513 624,189 Receivables (net of allowances) Taxes 1,725,512 - 68,928 Accounts and Other 1,987,843 - Inventory 88,518 - Prepaid Items 8,133 - Restricted Assets: Cash and Cash Equivalents 425,864 - - TOTAL ASSETS $ 11,865,702 $ 10,877,234 $ 728,105 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts Payable $ 1,241,009 $ 469,483 $ - Accrued Salaries and Benefits 456,962 - - Accrued Interest - 33,742 Customer Deposits 42,513 - Due to Other Governments 205,303 - - Due to Other Funds 138,926 776,005 - Unearned Revenues 28,285 - - Total Liabilities 2,112,998 1,245,488 33,742 Deferred Inflows of Resources: Unavailable Revenues 2,030,670 - 68,928 Fund Balances: Nonspendable: Inventory 88,518 - Prepaid Items 8,133 - Restricted for: Police and Public Safety 139,884 - Municipal Court 628,459 - PEG Capital Fees 489,509 - Capital Improvement - 9,600,028 - Debt Service - 625,435 Tourism Development - Parks and Tree Mitigation - Historical Committee and Library - Economic Development - - Scholarships 54,176 - - Committed for Capital Improvements - 31,718 - Assigned for: Property Replacement 694,916 - Special Events 31,177 - Unassigned 5,587,262 - - Total Fund Balances 7,722,034 9,631,746 625,435 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES $ 11,865,702 $ 10,877,234 $ 728,105 See Accompanying notes to basic financial statements. 19 Economic Nonmajor Total Development Governmental Governmental Corporation Funds Funds $ 293,205 $ 845,103 $ 2,992,701 6,961,045 781,725 25,054,620 567,202 38,093 2,399,735 1,888 140 1,989,871 - - 88,518 - 13,602 21,735 - - 425,864 $ 7,823,340 $ 1,678,663 $ 32,973,044 $ 9,658 $ 31,727 $ 1,751,877 21,104 - 478,066 - 33,742 - 42,513 205,303 914,931 - - 28,285 30,762 31,727 3,454,717 2,099,598 88,518 13,602 21,735 - 389,380 529,264 - - 628,459 - 489,509 - 9,600,028 - - 625,435 - 501,996 501,996 - 663,860 663,860 - 78,098 78,098 7,792,578 - 7,792,578 - 54,176 - 31,718 - 694,916 - 31,177 - - 5,587,262 7,792,578 1,646,936 27,418,729 $ 7,823,340 $ 1,678,663 $ 32,973,044 20 rr CITY OF SCHERTZ, TEXAS RECONCILIATION OF BALANCE SHEET SEPTEMBER 30, 2014 TOTAL FUND BALANCE - TOTAL GOVERNMENTAL FUNDS Amounts reported for governmental activities in the Statement of Net Position are different because: Capital Assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. Other long -term assets are not available to pay for current - period expenditures and, therefore, are not recognized as revenue in the funds. The governmental funds report other post- employement benefit contributions as expenditures when they become due and payable. However, in the statement of activities differences between other post - employment benefit contributions and actuarially determined costs are reported as an obligation. 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 Unamortized Premiums, Discounts, Losses on Refundings Capital Lease Payable Accrued Interest Payable Compensated Absences TOTAL NET POSITION - GOVERNMENTAL ACTIVITIES See accompanying notes to basic financial statements. 21 $ 27,418,729 111,550,067 2,099,598 (279,765) (57,428,934) (218,421) (123,370) (343,467) (866,799) (58,980,991) $ 81,807,638 CITY OF SCHERTZ, TEXAS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES — GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2014 EXPENDITURES Current: General Government 5,232,687 46,542 Debt Public Safety General Capital Service Public Environment Fund Projects Fund REVENUES 1,100,971 - - Taxes $ 16,652,245 $ - $ 5,295,577 Permits and Fees 1,365,624 - - Service Fees 1,592,851 - - Fines and Fees 1 ,712,562 - - Intergovernmental 218,081 3,688 - Investment Earnings 13,657 17,429 1,477 Miscellaneous 547,515 - - TOTAL REVENUES 22,102,535 21,117 5,297,054 EXPENDITURES Current: General Government 5,232,687 46,542 - Public Safety 9,398,845 - - Public Environment 1,012,607 - - Parks and Recreation 1,100,971 - - Cultural 794,434 - - Health 394,918 - - Administration 1,604,825 - - Capital Outlay 383,264 7,530,597 - Debt Service: Net Change in Fund Balance 1,704,828 Principal 32,764 - 3,262,833 Interest and Fiscal Charges 579 - 2,080,360 Bond Issue Costs - - 165,650 TOTAL EXPENDITURES 1.9,955,894 7,577,139 5,508,843 Excess (Deficiency) of Revenues Over (Under) Expenditures 2,146,641 (7,556,022) (211,789) OTHER FINANCING SOURCES (USES) Proceeds from Issuance of Debt - - 8,450,000 Premiums from Issuance of Debt - - 686,137 Proceeds from Capital Lease 133,715 - - Payments to Refunding Escrow Agent - - (9,182,250) Transfers In 89,416 762,358 366,138 Transfers Out (664,944) - - TOTAL OTHER FINANCING SOURCES (USES) (441,81.3) 762,358 320,025 Net Change in Fund Balance 1,704,828 (6,793,664) 108,236 Fund Balances at Beginning of Year 6,017,206 16,425,410 517,199 Fund Balances at End of Year $ 7,722,034 $ 9,631,746 $ 625,435 See accompanying notes to basic financial statements. 22 Economic Development Corporation Other Nonmaj or Governmental Funds Total Governmental Funds $ 3,521,338 $ 552,570 $ 26,021,730 - 439,423 1,805,047 - 171,113 1,763,964 - 37,749 1,750,311. - - 221,769 9,599 853 43,015 - 81,201 628,716 3,530,937 1,282,909 32,234,552 565,322 136,888 5,981,439 - 11,049 9,409,894 - - 1,012,607 - 237,261 1,338,232 - 21,257 815,691 - - 394,918 519,831 145,385 2,270,041 - 86,606 8,000,467 400,000 - 3,695,597 27,671 - 2,108,610 - - 165,650 1,512,824 638,446 35,193,146 2,018,113 644,463 (2,958,594) - - 8,450,000 - - 686,137 - - 133,715 - - (9,182,250) - 25,921 1,243,833 (367,743) (261,145) (1,293,832) (367,743) (235,224) 37,603 1,650,370 409,239 (2,920,991) 6,142,208 1,237,697 30,339,720 $ 7,792,578 $ 1,646,936 $ 27,418,729 23 rr CITY OF SCHERTZ, TEXAS RECONCILIATION OF THE STATEMENT OF REVENUES, GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED SEPTEMBER 30, 2014 NET CHANGE IN FUND BALANCES - GOVERNMENTAL FUNDS 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. In addition, capital assets contributed to governmental activities are not recorded on the fund statements. Capital Outlay 7,968,458 Capital Contributions 5,749,198 Depreciation Expense (4,209,665) 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 reourees of governmental funds. Neither transaction, however, has any affect on net position. This amount is the net effect of these differences in the treatment of long -term debt and related items. Proceeds from the Issuance of Debt (8,450,000) Premiums Received from the Issuance of Debt (686,137) Proceeds from Capital Leases (133,715) Payment to Refunding Escrow Agent 9,182,250 Principal Repayments 3,695,597 Amortization of Premiums, Discounts, Losses (81406) 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 Net Other Postemployment Benefits Accrued Interest CHANGE IN NET POSITION - GOVERNMENTAL ACTIVITIES See accompanying notes to basic financial statements. 24 (7,231) (279,765) (70,193) $ (2,920,991) 9,507,991 848 3,599,589 (357,189) $ 9,830,248 CITY OF SCHERTZ, TEXAS STATEMENT OF NET POSITION - PROPRIETARY FUNDS SEPTEMBER 30, 2014 ASSETS Current Assets: Cash and Cash Equivalents Investments Accounts Receivable, Net of Allowance: Customer Accounts Due from Other Funds Accrued Interest Prepaid Expenses Inventory Total Current Assets Noncurrent Assets: Restricted Assets: Cash and Cash Equivalents Investments Capital Assets: Land Water Rights Buildings and Improvements Machinery, Equipment, and Vehicles Infrastructure Construction in Progress Less: Accumulated Depreciation Total Noncurrent Assets TOTAL ASSETS Business -Type Activities - Enterprise Funds Water and Sewer Schertz System EMS Total $ 1,693,211 $ 294,121 $ 1,987,332 2,742,995 - 2,742,995 3,101,633 1,384,392 4,486,025 933,250 - 933,250 3,114 - 3,114 - 1,950 1,950 40,890 83,293 124,183 8,515,093 1,763,756 10,278, 849 2,065,094 - 2,065,094 10,068,053 - 10,068,053 1,267,852 - 1,267,852 70,245 - 70,245 4,653,501 6,500 4,660,001 1,917,786 1,722,488 3,640,274 77,985,687 - 77,985,687 1,651,694 - 1,651,694 (23,576,447) (1,145,831) (24,722,278) 76,103,465 583,157 76,686,622 84,618,558 2,346,913 86,965,471 Governmental Activities Internal Service Fund DEFERRED OUTFLOWS OF RESOURCES Deferred Loss on Refunding 146,807 - 146,807 - TOTAL DEFERRED OUTFLOWS $ 146,807 $ - $ 146,807 $ - See accompanying notes to basic financial statements. 25 CITY OF SCHERTZ, TEXAS STATEMENT OF NET POSITION - PROPRIETARY FUNDS (CONTINUED) SEPTEMBER 30, 2014 LIABILITIES Current Liabilities: Accounts Payable Accrued Liabilities Customer Deposits Accrued Interest Payable Due to Other Funds Unearned Revenue Current Portion of Compensated Absences Current Portion of Long -Term Debt Total Current Liabilities Noncurrent Liabilities: Compensated Absences Net Other Post- Employment Benefit Payable Long -Term Debt (Net of Current Portion) Total Noncurrent Liabilities TOTAL LIABILITIES NET POSITION Net Investment in Capital Assets Unrestricted TOTAL NET POSITION Business -Type Activities - Enterprise Funds Water and Sewer Schertz System EMS Total Governmental A,.,.,. mtemat Service Fund $ 1,427,474 $ 301,847 $ 1,729,321 $ - 55,203 102,637 157,840 - 486,814 - 486,814 - 67,282 722 68,004 - - 18,31.9 1.8,319 - 305,651 - 305,651 - 18,198 30,1.38 48,336 - 1,049,756 166,208 1,215,964 - 3,410,378 619,871 4,030,249 - 72,791 120,553 193,344 - 34,800 50,341 85,141 - 12,411,316 266,803 12,678,119 - 1.2,518,907 437,697 12,956,604 - 15,929,285 1,057,568 16,986,853 - 53,524,290 150,1.47 53,674,437 - 1.5,311,790 1,139,198 16,450,988 - $ 68,836,080 $ 1,289,345 $ 70,125,425 $ - See accompanying notes to basic financial statements. 26 CITY OF SCHERTZ, TEXAS STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2014 OPERATING REVENUES Fees Charged to Users Charges for Premiums Other Charges TOTAL OPERATING REVENUES OPERATING EXPENSES Personnel Services Contribution to Joint Ventures Water Purchase Garbage Contractor 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 and Bond Issue Costs TOTAL NONOPERATING REVENUES (EXPENSES) INCOME BEFORE CONTRIBUTIONS AND TRANSFERS Transfers In (Out) Capital Contributions Governmental Business -Type Activities - Enterprise Funds Activities Water Internal and Sewer Schertz Service System EMS Total Fund $ 19,110,332 $ 4,533,753 $ 23,644,085 $ - - - - 1,993,559 37,540 - 37,540 - 19,147,872 4,533,753 23,681,625 1,993,559 1,996,505 3,055,528 5,052,033 1,993,559 1,572,074 - 1,572,074 - 2,890,719 - 2,890,719 - 3,736,380 - 3,736,380 - 2,621,480 - 2,621,480 - 2,040,834 432,283 2,473,117 - 125,663 125,877 251,540 - 262,998 443,306 706,304 - 1,939,379 204,325 2,143,704 - 17,186,032 4,261,319 21,447,351 1,993,559 1,961,840 272,434 2,234,274 - 31,735 75 31,810 - 202,984 - 202,984 - 297,722 108,297 406,019 - (427,018) (6,806) (433,824) - (149,066) - (149,066) - (43,643) 101,566 57,923 - 1,918,197 374,000 2,292,197 - 50,000 - 50,000 - 2,809,110 - 2,809,110 - CHANGE IN NET POSITION 4,777,307 374,000 5,151,307 - NET POSITION AT BEGINNING OF YEAR 64,058,773 915,345 64,974,118 - NET POSITION AT END OF YEAR $ 68,836,080 $ 1,289,345 $ 70,125,425 $ - See accompanying notes to basic financial statements. 27 CITY OF SCHERTZ, TEXAS STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2014 Cash Flows From Operating Activities: Cash Received From Customers and Users Cash Received from Interfund Services 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 Interest Paid on Long -Term Debt Transfers from Other Funds for Projects Proceeds from Bonds Issued Premiums from Bonds Issued Bond Issuance Costs Paid Payment to Refunding Escrow Agent Principal Paid on Long -Term Debt Net Cash Provided (Used) by Capital and Related Financing Activities Cash Flows From Investing Activities: Purchase of Investments Payments from Leases Interest and Investment Earnings Net Cash Provided (Used) by Investing Activities Net Increase (Decrease) in Cash and Cash Equivalents 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 See accompanying notes to basic financial statements. Business -Type Activities - Enterprise Funds Water and Sewer Schertz System EMS Total Governmental 111 LG1 nai Service Fund $ 18,413,100 $ 4,648,155 $ 23,061,255 $ - - - - 1,993,559 (1,937,683) (2,959,582) (4,897,265) (1,993,559) (12,981,530) (1,045,269) (14,026,799) - 3,493,887 643,304 4,137,191 (227,564) (198,970) (426,534) (227,564) (198,970) (426,534) (1,734,647) - (1,734,647) (412,213) (7,259) (419,472) 50,000 - 50,000 7,125,000 - 7,125,000 131,725 - 131,725 (157,037) - (157,037) (2,113,216) - (2,113,216) (1,010,500) (143,029) (1,153,529) 1,879,112 (150,288) 1,728,824 (3,560,139) - (3,560,139) 202,984 - 202,984 31,723 75 31,798 (3,325,432) 75 (3,325,357) 1,820,003 294,121 2,114,124 1,152,953 - 1,152,953 785,349 - 785,349 1,938,302 - 1,938,302 1,693,211 294,121 1,987,332 - 2,065,094 - 2,065,094 - $ 3,758,305 $ 294,121 $ 4,052,426 $ - 28 CITY OF SCHERTZ, TEXAS STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS (CONTINUED) FOR THE YEAR ENDED SEPTEMBER 30, 2014 Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities: Operating Income Revenues from Other Sources Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Depreciation Decrease (Increase) in Assets: Accounts Receivable (net) Prepaid Expenses Inventory Increase (Decrease) in Liabilities: Accounts Payable Accrued Liabilities Customer Deposits Unearned Revenue Compensated Absences Net Other Post- employment Benefit Payable Net Cash Provided (Used) by Operating Activities Noneash Capital and Related Financing Transactions: Developer Contributions of Capital Assets Contribution of Capital Asset from General Fund Assets Purchased through Capital Lease See accompanying notes to basic financial statements. Governmental Business -Type Activities - Enterprise Funds Water and Sewer Schertz System EMS Total $ 1,961,840 $ 272,434 $ 2,234,274 $ 297,722 108,297 406,019 ui M 1 uai Service Fund 29 1,939,379 204,325 2,143,704 - (1,187,651) 6,105 (1,181,546) - 36,005 (31,803) 4,202 - 232,613 (12,000) 220,613 - 19,735 34,482 54,217 - (13,674) - (13,674) - 168,831 - 168,831 - 4,287 11,123 15,410 - 34,800 50,341 85,141 - $ 3,493,887 $ 643,304 $ 4,137,191 $ - $ 2,809,110 $ - $ - $ - $ 20,319 $ - $ - $ - $ - $ 347,705 $ - $ - 29 NOTES TO BASIC FINANCIAL STATEMENTS 30 CITY OF SCHERTZ, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2014 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Schertz is a municipal corporation governed by an elected mayor and five- member council. The financial statements of the City have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the City's accounting policies are described below: A. Reporting Entity Component Units - As required by generally accepted accounting principles, these financial statements present the government and its component units, entities for which the government is considered to be financially accountable. Blended component units, although legally separate entities, are, in substance, part of the government's operations; thus, data from these units are be combined with data of the primary government. Discretely presented component units, on the other hand, are reported in a separate column in the government -wide financial statements to emphasize it is legally separate from the government. The City reports the following blended component units: 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. Complete financial statements for the Schertz Economic Development Corporation may be obtained from City Hall. 2. Parks and Recreation Foundation — The Corporation was organized to improve and expand the community parks, trails, venues, and recreational programs providing fun leisure and healthy activities. The Foundation's governing board is comprised of Schertz residents and employees of the City, the accounting records are maintained by the finance department, cash is held by the City, and the City provides financing for the Foundation. In addition, the City includes the Foundation as part of the City budget process. The City and its citizens are the sole beneficiaries of the Foundation. Separate financials are not issued for the Parks and Recreation Foundation. Joint Ventures - 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 entities meet the criteria as joint ventures. Separate financial statements for these entities may be obtained at City Hall. 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. 2. Cibolo Valley Local Government Corporation — is a public, nonprofit corporation organized July 28, 2011 to aid, assist, and act on behalf of the cities of Cibolo, Converse and Schertz 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. 31 CITY OF SCHERTZ, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) SEPTEMBER 30, 2014 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Cibolo Creek Municipal Authority ( CCMA) — was created in 1971 and provides regional wastewater services to the area northeast of San Antonio. The City and CCMC entered into a joint project to develop a new treatment facility that will currently only serve the City. The project will have excess capacity to serve other users in the future. The City is solely responsible for funding the project until other users need capacity. B. Government -Wide and Fund Financial Statements The government -wide financial statements (i.e., the statement of net position 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. 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 fiends 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 fiend 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. Nonexchange revenues that are measurable but not available are recorded as unavailable revenue (a deferred inflow of resources). These revenues are generally property taxes and warrants outstanding. 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. Exchange revenues (payments for services) received in advance of the service being provided are recorded as unearned revenue. 32 CITY OF SCHERTZ, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) SEPTEMBER 30, 2014 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) 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. 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. Economic Development Corporation collects sales taxes to support business development and expansion within the City. 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. Internal Service Fund accounts for the City's group medical insurance program. 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. 33 CITY OF SCHERTZ, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) SEPTEMBER 30, 2014 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Measurement Focus. Basis of Accounting. and Financial Statement Presentation (Continued 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 Eauivalents The City's cash and cash equivalents are considered to be cash on hand and demand deposits. Cash is reported as restricted when it has restrictions on its use narrower than the purpose of the fund in which it is reported. This can result in differences in presentation between fund statements and government -wide statements. 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 Payables 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 unavailable revenue (a deferred inflow of resources) at the government fund level. 34 CITY OF SCHERTZ, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) SEPTEMBER 30, 2014 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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 from bonds, resources set aside for their repayment, and other restrictive agreements 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 and/or contractual arrangements. I. 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: Useful Lives Assets (Years) Buildings and Improvements 10-50 Machinery, Equipment, and Vehicles 2-20 Infrastructure 15-30 J. Deferred Inflows /Outflows of Resources A deferred outflow of resources is a consumption of net position by the government that is applicable to a future reporting period while a deferred inflow of resources is an acquisition of net position. These items are presented in separate sections following assets (deferred outflows) or liabilities (deferred inflows) on the statement of net position. 35 CITY OF SCHERTZ, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) SEPTEMBER 30, 2014 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) K. Compensated Absences 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 fiends only if they have matured, for example, as a result of employee resignations and retirements. L. 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 position. Bond premiums, discounts, and losses on defeasance are amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Losses on defeasance are reported as deferred outflows of resources. Bond issuance costs are expensed as incurred. 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. M. Fund Equity Fund balances in governmental funds are classified as follows: Nonspendable — Represents amounts that cannot be spent because they are either not in spendable form (such as inventory or prepaid items) or legally required to remain intact. Restricted — Represents amounts that are constrained by external parties, constitutional provisions or enabling legislation. Committed — Represents amounts that can only be used for a specific purpose because of a formal action by the government's highest level of decision making authority: an ordinance adopted by City Council prior to the end of the fiscal year. Once adopted, the limitation imposed by the ordinance remains in place until a similar action is taken (the adoption of another ordinance) to remove or revise the limitation. Assigned — Represents amounts which the City intends to use for a specific purpose but do not meet the criteria of restricted or committed. The City Council may make assignments through formal documentation in the minutes. The City Council authorized (by way of policy) the City Manager to also make assignments. The City Manager's assignments do not require formal action; however, the City Manager has not assigned any funds at this time. Unassigned — Represents the residual balance that may be spent on any other purpose of the City. 36 CITY OF SCHERTZ, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) SEPTEMBER 30, 2014 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) M. Fund Eauitv (Cont.) When an expenditure is incurred for a purpose in which multiple classifications are available, the City considers restricted balances spent first, committed second, and assigned third. N. Net Position Net position represents the difference between assets plus deferred outflows of resources less liabilities and deferred inflows of resources. Net investment in capital assets consists 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. O. 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. P. Budizetary 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. Q. Reclassifications Certain reclassifications have been made in the presentation of the September 30, 2014 . financial statements. All comparative information for prior periods has been reclassified to match the new presentation. The changes in presentation had no impact on the changes in net position or fund balance. 37 CITY OF SCHERTZ, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) SEPTEMBER 30, 2014 NOTE 2 - CASH, CASH EQUIVALENTS AND INVESTMENTS The City's operating deposits are held at one institution. The institution provides a combination of pledged collateral and FDIC insurance to completely collateralize the City's deposits. As of September 30, 2014, the City had the following pooled investment funds: Investment Type LOGIC Lone Star Investment Pool Texas CLASS Schertz Bank & Trust - Certificate of Deposit Capital One - U.S. Agency Securities Total Book Fair Value Value $ 6,562,212 $ 6,562,212 17,974,689 17,974,689 8,147,947 8,147,947 Weighted Average Maturity in Days 57 107 60 2,108,558 2,108,558 85 3,072,262 3,072,262 528 $ 37,865,668 $ 37,865,668 121 Interest Rate 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, 2014, the City's investments in the pooled investment funds were rated AAAm by Standard & Poor's. The City has also invested in debt securities provided by the Federal Home Loan Bank, Federal National Mortgage Association, Federal Home Loan Mortgage Corporation, Federal Farm Credit Banks, and U.S Treasury Notes. 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. As of September 30, 2014, the City's cash and cash equivalents (including certificates of deposit, and component unit holdings) were fully collateralized by the City's depository by a combination of pledged collateral and FDIC insurance. All collateral is held in the City's name. 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. 38 CITY OF SCHERTZ, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) SEPTEMBER 30, 2014 NOTE 3 - 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, 2013, upon which the fiscal 2014 levy was based, was $2,752,562,574 (i.e., market value less exemptions). The estimated market value was $3,093,310,224, making the taxable value 89% 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, 2014, was $0.4974 per $100 of assessed value, which means that the City has a tax margin of $2.0026 for each $100 value and could increase its annual tax levy by approximately $55,122,81.8 based upon the present assessed valuation 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. NOTE 4 - RECEIVABLES Receivables as September 30, 2014 for the government's individual major fiends and nonmajor funds in the aggregate, including the applicable allowances for uncollectible accounts, are as follows: Receivables: Property Taxes Sales Taxes Occupancy Taxes Franchise Taxes Customers Court Fines Grants Other Gross Receivables Less: Allowance for Uncollectibles Net Total Receivables 39 Governmental Funds Proprietary Funds Capital Economic Debt Nonmajor Water and Schertz General Projects Development Service Funds Sewer Fund EMS $ 125,772 $ - $ - $ 73,328 1,134,403 - 567,202 - - - - - - 38,093 472,883 - - - - - 50,398 - - - - 3,171,852 15,248,204 4,698,881 - - - - - - 25,000 46,542 1,888 - 140 - 5,301 6,507,337 46,542 569,090 73,328 38,233 3,171,852 15,253,505 2,793,982 46,542 - 4,400 - 70,219 13,869,113 —Lill $ _J_169 090 _J__68 ,928 38,233 3,101,633 $ 1,384,392 39 CITY OF SCHERTZ, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) SEPTEMBER 30, 2014 NOTE 4 — RECEIVABLES (Continued) Governmental funds report unavailable 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/ unavailable revenue and unavailable revenue reported in the governmental funds were as follows: Unavailable General Fund Delinquent Property Taxes Receivable $ 118,225 Court Fines 1,912,445 Total General Fund 2,030,670 Debt Service Fund Delinquent Property Taxes Receivable 68,928 Total Debt Service Fund 68,928 Total Governmental Funds $ 2,099,598 NOTE 5 - INTERFUND BALANCES AND TRANSFERS The composition of interfund balances as of September 30, 2014 is as follows: Due From Due To EMS Water & Sewer Capital Projects Water & Sewer General Fund Water & Sewer Amount Purpose $ 18,319 Structured loan between funds 776,005 Portion of bond proceeds for water projects 138,926 Property tax collections for TIRZ The following schedule briefly summarizes the City's transfer activity for the year ending September 30, 2014: Transfer From Transfer To Amount Purpose Nonmajor Governmental General $ 89,416 Hotel tax support of special events General Nonmajor Governmental 2,421 Supplement historical committee Nonmajor Governmental Nonmajor Governmental 23,500 Hotel tax support of parks and recreation Economic Development Debt Service 366,138 Pledge in support of debt service General Capital Projects 612,523 Supplement capital projects funding Nonmajor Governmental Capital Projects 148,229 Supplement capital projects funding General Water & Sewer 50,000 Supplement capital projects funding Economic Development Capital Projects 1,605 Supplement capital projects funding .m CITY OF SCHERTZ, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) SEPTEMBER 30, 2014 NOTE 6 - CAPITAL ASSETS Capital asset activity for the year ended September 30, 2014 was as follows: Accumulated Depreciation Buildings and Improvements Beginning (975,237) 63,182 97,571 Ending Machinery, Equipment, and Vehicles Balance Increases Deletions Transfers Balance Governmental Activities: (20,320,934) (2,708,664) - (97,571) (23,127,169) Capital Assets, Not Being Depreciated: (32,149,182) (4,209,665) 185,832 20,319 (36,152,696) Land $ 7,445,117 $ $ $ $ 7,445,117 Construction in Progress 3,161,422 6,835,613 $ (5,001,380) 4,995,655 Total Capital Assets Not Being Depreciated 10,606,539 6,835,613 (5,001,380) 12,440,772 Capital Assets, Being Depreciated: Balance Increases Deletions Transfers Balance Buildings and Improvements 35,471,337 - (63,182) 3,708,047 39,116,202 Machinery, Equipment, and Vehicles 6,354,680 1,132,844 (122,650) 797,848 8,162,722 Streets and Infrastructure 81,758,702 5,749,199 $ - 475,166 87,983,067 Total Capital Assets Being Depreciated 123,584,719 6,882,043 (185,832) 4,981,061 135,261,991 Accumulated Depreciation Buildings and Improvements (7,706,131) (975,237) 63,182 97,571 (8,520,615) Machinery, Equipment, and Vehicles (4,122,117) (525,764) 122,650 20,319 (4,504,912) Streets and Infrastructure (20,320,934) (2,708,664) - (97,571) (23,127,169) Total Accumulated Depreciation (32,149,182) (4,209,665) 185,832 20,319 (36,152,696) Total Capital Assets Being Depreciated, Net 91,435,537 2,672,378 - 5,001,380 99,109,295 Governmental Activities Capital Assets, Net $ 102,042,076 $ 9,507,991 $ $ - $ 111,550,067 Beginning Ending Balance Increases Deletions Transfers Balance Business -Type Activities: Capital Assets, Not Being Depreciated. Land $ 1,254,524 $ 13,328 $ - $ $ 1,267,852 Water Rights 70,245 - - 70,245 Construction in Progress 365,904 1,285,790 - 1,651,694 Total Assets Not Being Depreciated 1,690,673 1,299,118 - 2,989,791 Capital Assets, Being Depreciated: Buildings and Improvements 79,836,578 2,809,110 - (77,985,687) 4,660,001 Machinery, Equipment, and Vehicles 3,051,206 803,552 (234,803) 20,319 3,640,274 Infrastructure - - - 77,985,687 77,985,687 Total Capital Assets Being Depreciated 82,887,784 3,612,662 (234,803) 20,319 86,285,962 Accumulated Depreciation: Buildings and Improvements (20,604,422) (263,759) - - (20,868,181) Machinery, Equipment, and Vehicles (2,188,636) (334,358) 234,803 (20,319) (2,308,510) Infrastructure - (1,545,587) - (1,545,587) Total Accumulated Depreciation (22,793,058) (2,143,704) 234,803 (20,319) (24,722,278) Total Capital Assets Being Depreciated, Net 60,094,726 1,468,958 - 61,563,684 Business -Type Activities Capital Assets, Net $ 61,785,399 $ 2,768,076 $ - $ $ 64,553,475 41 CITY OF SCHERTZ, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) SEPTEMBER 30, 2014 NOTE 6 - CAPITAL ASSETS (Continued) Depreciation expense was charged to functions /programs of the primary government as follows: Governmental Activities: General Government $ 666,390 Public Safety 425,911 Public Environment 2,713,900 Parks and Recreation 318,140 Cultural 61,623 Health 5,953 Administration 17,748 Total Depreciation Expense - Governmental Activities $ 4,209,665 Business -Type Activities: Water and Sewer System $ 1,939,379 EMS 204,325 Total Depreciation Expense - Business Type Activities $ 2,143,704 NOTE 7 - OPERATING LEASE The City has agreements with several telecommunication companies to place cellular towers on City water towers. The following schedule represents the future minimum lease payments. Fiscal Year Ending September 30, Total 2015 $ 211,812 2016 220,285 2017 229,096 2018 238,260 2019 250,173 $ 1,149,626 NOTE 8 - CAPITAL LEASE In 2014, the City entered into two lease agreements qualifying as capital leases for accounting purposes based on a bargain purchase option. Therefore, capital assets and a related capital lease obligation has been recorded at the present value of the future minimum lease payments at the inception date. The assets acquired through capital lease are reported in capital assets with the following accumulated depreciation at September 30, 2014: Assets: Equipment Less Accumulated Depreciation Total 42 Governmental Business -type Activities Activities $ 133,715 $ 133,715 $ 347,705 (46,361) $ 301,344 CITY OF SCHERTZ, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) SEPTEMBER 30, 2014 NOTE 8 - CAPITAL LEASE (Continued) Future minimum lease payments are as follows: Year Ending September 30, 2015 2016 2017 2018 2019 Total Payments Less: Amount Representing Interest Present Value of Minimum Lease Payments Governmental Business -type Activities Activities $ 36,230 $ 69,541 36,230 69,541 36,230 69,541 24,153 69,541 - 23,180 132,843 301,344 (9,473) - $ 1.23,370 $ 301,344 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 primarily future property tax revenues. In some cases, these bonds are also secured by a pledge of net revenues from the utility system, emergency medical services and economic development sales taxes. However, the amount of the formal pledge is generally limited to $1,000. In October 2013, the City issued $4,965,000 in Combination Tax and Limited Pledge Revenue Certificates of Obligation Series 2013 for utility system improvements and a new public works building. The certificates are secured by a pledge of utility system revenues, which will be used to pay the entire debt service. In October 2013, the City also issued $2,160,000 in General Obligation Refunding Bonds Series 2013 to advance refund a portion of the Combination Tax and Subordinate Lien Revenue Certificates of Obligation Series 2005. The bonds were called on February 1, 2014. The refunding saved the City $155,573 in future debt service with a present value of $1.33,020. Utility system revenues will be used to service the debt on these refunding obligations. In. June 2014, the City issued $8,450,000 in General Obligation Refunding Bonds Series 2014 to advance refund a portion of General Obligation Bonds Series 2006. Proceeds from the bonds were placed with an escrow agent solely to repay the debt service related to the refunded obligations of $8,375,000 until the call date of February 1, 2016. The refunded obligations are considered defeased and are not shown as outstanding on these financial statements. The refunding resulted in gross debt service savings of $1,406,689 with a present value of $1,093,616. Future interest and sinking taxes will be used to service this debt. 43 CITY OF SCHERTZ, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) SEPTEMBER 30, 2014 NOTE 9 - LONG -TERM DEBT (Continued) A summary of the terms of general obligation bonds and combination of tax and revenue certificates of obligation outstanding at September 30, 2014, follows: .. Issue Amount Maturity Rate Balance Primary Government General Obligation Bonds 2006 Series $ 15,000,000 2031 4.0%-5.25% $ 4,880,000 2007 Series 6,000,000 2027 4.07% 4,295,000 2008 Series 9,900,000 2028 4.13% 7,830,000 2009 Series 9,500,000 2033 2.0%-5.50% 7,090,000 2010 Series, Refunding 2,865,000 2021 2.0%-4.0% 2,040,000 2011 Series 8,250,000 2036 3.0%-6.0% 7,750,000 2011A Series, Refunding 6,745,000 2024 2.33% 5,920,000 2012 . Series 7,625,000 2032 2.00% 7,045,000 2014 Series, Refunding 8,450,000 2030 2.0 % -4.0% 8,450,000 Tax Notes 2010 . Notes 1,270,000 2015 1.2%-2.55% 265,000 2013 Notes 835,000 2018 0.7%-1.7% 675,000 2013A Notes 800,000 2018 1.30% 645,000 Certificates of Obligation 2007 Series CIB 2 438,900 2016 4.01% 105,600 2007 Series CIB 4 569,500 2016 4.01% 133,334 2007 Series CIB 5 1,300,000 2016 4.01% 305,000 Total Governmental Long -Term Obligations $ 57,428,934 General Obligation Bonds 2011 Series, Refunding $ 2,675,000 2021 2.0%-3.0% $ 1,830,000 2013 Series, Refunding 2,130,000 2025 2.58% 2,130,000 Certificates of Obligation 2007 Series CIB 1 6,600,000 2026 4.01% 4,580,000 2007 Series CIB 2 226,100 2016 4.01% 54,400 2007 Series CIB 4 280,500 2016 4.01% 66,666 2013 Series 4,965,000 2033 2.0 % -4.0% 4,735,000 Tax Notes 2010 . Notes 31.0,000 2015 1.20% - 2.55% 65,000 Total Business -Type Long -Term Obligations $ 13,461,066 .. CITY OF SCHERTZ, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) SEPTEMBER 30, 2014 NOTE 9 - LONG -TERM DEBT (Continued) Changes in long -term debt for the year ending September 30, 2014 are as follows: Governmental Activities: General Obligation Bonds Unamortized Premium General Obligation Refunding Bonds Unamortized Premium Certificates of Obligation Tax Notes Capital Lease Compensated Absences Total Governmental Activities Business -Type Activities: Revenue Bonds Unamortized Discount General Obligation Refunding Bonds Unamortized Premium Certificates of Obligation Unamortized Premium Tax Notes Capital Lease Compensated Absences Payable Total Business -Type Activities Balance $ - $ (2,215,000) Balance Due Within 9/30/2013 Additions Reductions 9130/2014 One Year $ 49,225,000 $ - $ (10,335,000) $ 38,890,000 $ 2,075,000 542,651 - (79,381) 463,270 24,232 8,835,000 8,450,000 (875,000) 16,410,000 925,000 91,099 686,137 (53,073) 724,163 53,073 801,767 - (257,833) 543,934 266,133 2,155,000 - (570,000) 1,585,000 590,000 22,398 133,715 (32,743) 123,370 31,875 859,568 179,145 (171,914) 866,799 173,360 $ 62,532,483 $ 9,448,997 $ (12,374,944) $ 59,606,536 $ 4,138,673 $ 2,215,000 $ - $ (2,215,000) $ - $ - (11,369) - 11,369 - - 2,120,000 2,160,000 (320,000) 3,960,000 475,000 7,502 - (969) 6,533 969 5,048,234 4,965,000 (577,168) 9,436,066 598,867 - 131,725 (6,585) 125,140 6,587 130,000 - (65,000) 65,000 65,000 - 347,705 (46,361) 301,344 69,541 226,270 60,664 (45,254) 241,680 48,336 $ 9,735,637 $ 7,665,094 $ (3,264,968) $ 14,135,763 $ 1,264,300 Annual debt service requirements of bonded debt as of September 30, 2014, are as follows: Governmental Activities September 30, Principal Interest Total 2015 $ 3,856,133 $ 2,148,255 $ 6,004,388 2016 3,767,801 1,953,204 5,721,005 2017 3,605,000 1,830,686 5,435,686 2018 3,720,000 1,712,133 5,432,133 2019 3,145,000 1,597,258 4,742,258 2020 -2024 16,335,000 6,243,415 22,578,415 2025 -2029 13,930,000 3,443,810 17,373,810 2030 -2034 7,990,000 970,501 8,960,501 2034 -2036 1,080,000 54,750 1,134,750 Total $ 57,428,934 $ 19,954,012 $ 77,382,946 '. CITY OF SCHERTZ, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) SEPTEMBER 30, 2014 NOTE 9 - LONG -TERM DEBT (Continued) 10 0111a[11MHINIIRWTA111,1118aMWI 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 from TMRS' website at www.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 eligibility (expressed as age /years of service) Updated Service Credit Plan Year 2013 7.0% 2 to 1. 5 60/5,0/20 100% Repeating, Transfers Plan Year 2014 7.0% 2 to 1. 5 60/5,0/20 1.00% Repeating, Transfers Annuity Increase (to retirees) 70% of CPI Repeating 70% of CPI Repeating .m Business -Type Activities September 30, Principal Interest Total 2015 $ 1,138,867 $ 423,799 $ 1,562,666 2016 1,092,199 393,127 1,485,326 2017 1,190,000 361,236 1,551,236 2018 1,135,000 329,659 1,464,659 2019 1,170,000 297,846 1,467,846 2020 -2024 4,800,000 977,892 5,777,892 2025 -2029 2,060,000 326,976 2,386,976 2030 -2033 875,000 71,700 946,700 Total $ 13,461,066 $ 3,182,235 $ 16,643,301 10 0111a[11MHINIIRWTA111,1118aMWI 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 from TMRS' website at www.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 eligibility (expressed as age /years of service) Updated Service Credit Plan Year 2013 7.0% 2 to 1. 5 60/5,0/20 100% Repeating, Transfers Plan Year 2014 7.0% 2 to 1. 5 60/5,0/20 1.00% Repeating, Transfers Annuity Increase (to retirees) 70% of CPI Repeating 70% of CPI Repeating .m CITY OF SCHERTZ, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) SEPTEMBER 30, 2014 NOTE 10 - RETIREMENT PLAN (Continued) B. Contributions Under the state law governing TMRS, the contribution rate for each city is determined annually by the actuary, using the Entry Age Nonnal (EAN) cost method (EAN was first used in the December 31, 2013 valuation; previously, the Projected Unit Credit actuarial cost method had been used). This rate consists of the normal cost contribution rate and the prior service cost contribution rate, which is calculated to be a level percent of payroll from year to year. The normal cost contribution rate for an employee is the contribution rate which, if applied to a member's compensation throughout their period of anticipated covered service with the municipality, would be sufficient to meet all benefits payable on their behalf. The salary- weighted average of the individual rates is the total normal cost rate. The prior service contribution rate amortizes the unfunded (overfunded) actuarial liability (asset) over the applicable period for that 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) are as follows: Fiscal Year Annual Actual Percentage of Net Pension Pension Cost Contribution Made APC Contributed Obligation 2014 $ 2,277,278 $ 2,277,278 100% 2013 2,190,352 2,190,352 100% 2012 2,120,746 2,120,746 100% The required contribution rates for fiscal year 2014 . were determined as part of the December 31, 2011 . and 2012 actuarial valuations. Additional information as of the latest actuarial valuation, December 31, 2013, also follows: Actuarial Valuation Date Actuarial Cost Method Amortization Method Remaining Amortization Period Amortization of New Gains /Losses Asset Valuation Method Investment Rate of Return Projected Salary Increases Inflation Rate Cost -of- Living Adjustments December 31, 2011 Projected Unit Credit Level Percent of Payroll 26.1 years - Closed Period 30 years December 31, 2012 Projected Unit Credit Level Percent of Payroll 25.1 years - Closed Period 30 years December 31, 2013 Entry Age Normal Level Percent of Payroll 30.0 years - Closed Period 30 years 10 -year Smoothed Market 10 -year Smoothed Market 10 -year Smoothed Market 7.0% 7.0% 7.0% Varies by age and service Varies by age and service Varies by age and service 3.0% 2.1% IN 3.0% 2.1% 3.0% 2.1% CITY OF SCHERTZ, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) SEPTEMBER 30, 2014 NOTE 10 - RETIREMENT PLAN (Continued) C. Funded Status and Funding Progress In October 2013, the TMRS Board approved actuarial changes in (a) the funding method from Projected Unit Credit to Entry Age Normal, (b) the post - retirement mortality assumptions used in calculating liabilities and contribution rates and in the development of the Annuity Purchase Rate factors, and (c) the amortization policy. These actuarial changes were effective with the December 31, 2013 . actuarial valuation. For a complete description of the new actuarial cost method and assumptions, please see the December 31, 2013 TMRS Comprehensive Annual Financial Report (CAFR). The funded status as of December 31, 2013, the most recent actuarial valuation date, is as follows: Actuarial Actuarial Value Valuation Date of Assets 12/31/2013 $ 30,541,625 Actuarial UAAL as a Accrued Unfunded Percentage of Liability (AAL) Funded Ratio AAL (UAAL) Covered Payroll Covered Payroll $ 45,615,815 67.0% $ 15,074,190 $ 14,356,845 105.0% Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of events far into the future. Actuarially determined amounts are subject to continual revisions as actual results are compared to past expectations and new estimates are made about the future. Actuarial calculations are based on the benefits provided under the terms of the substantive plan in effect at the time of each valuation, and reflect a long -term perspective. Consistent with that perspective, actuarial methods and assumptions used to include techniques that are designed to reduce short -term volatility in actuarial accrued liabilities and the actuarial value of assets. The schedule of finding progress, presented as Required Supplementary Information following the notes to the financial statements, presents multi -year 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. The City's contributions to the TMRS SDBF for the years ended 2014, 2013, and 2012 were $20,815, $21,251, and $22,274, respectively, which equaled the required contributions each year. CITY OF SCHERTZ, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) SEPTEMBER 30, 2014 NOTE 11— RETIREE HEALTH INSURANCE PLAN A. Plan Description The City provides an other post - employment benefit to eligible retirees of the City whereby they can stay on the City's health insurance plan by paying the full premium. B. Contributions The City's annual other post - employment benefits (OPEB) cost is calculated based on the annual required contribution (ARC) of the employer, an amount actuarially determined in accordance with the parameters of GASB Statement No. 45. The ARC represents a level of accrual that, if paid on an ongoing basis, is projected to cover the normal cost each year and to amortize any unfunded actuarial liabilities (or funding excesses) over a period not to exceed thirty years. The City's annual OPEB cost for the fiscal year ending September 30, 2014 is as follows: Annual Required Contribution Interest on OPEB obligation Adjustment to ARC Annual OPEB cost Contributions Increase in net OPEB obligation Beginning Net OPEB Obligation Ending Net OPEB Obligation $ 78,523 1.3,457 (12,467) 79,513 (13,645) 65,868 299,038 $ 364,906 The City's annual OPEB cost, the amount contributed by the employer, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for fiscal year ending September 30, 2014 and the preceding two fiscal years were as follows: Fiscal Year Ending September 30, 2014 2013 2012 Annual OPEB Percent Cost Contributions Contributed $ 79,512 $ 13,645 17% 77,014 1 3,248 17% 74,590 1 2,862 17% Net OPEB Obligation $ 364,905 299,038 235,272 The Projected Unit Credit Cost Method is used to calculate the actuarial required contribution (ARC) for the City's retiree health care plan. Using the plan benefits, the present health premiums and a set of actuarial assumptions, the anticipated future payments are projected. The actuarial cost method then provides for a systematic funding for these anticipated payments. The yearly ARC is computed to cover the cost of benefits being earned by covered members as well as to amortize a portion of the unfunded accrued liability. .• CITY OF SCHERTZ, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) SEPTEMBER 30, 2014 NOTE 11— RETIREE HEALTH INSURANCE PLAN (Continued) B. Contributions (Continued) Projections of health benefits are based on the plan as understood by the City and include the types of benefits in force at the valuation date and the pattern of sharing benefit costs between the City and the City's employees to that point. Actuarial calculations reflect a long -term perspective and employ methods and assumptions that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets. Significant methods and assumptions were as follows: Inflation Rate 3.0% Investment Rate of Return 4.5 %, net of expenses Actuarial Cost Method Projected Unit of Credit Amortization Method Level as a percent of payroll Amortization Period 30 -year open period Payroll Growth 3.0% Medical Trend Initial rate of 7.25 %, declining to an ultimate rate of 4.5% after 11 years Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of events in the future. Amounts determined regarding the funded status and the annual required contributions of the City's retiree health care plan are subject to continual revision as actual results are compared to past expectations and new estimates are made about the future. The required schedule of funding progress presented as required supplementary information provides multiyear trend information that shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial . accrued liability for benefits. The funded status as of December 31, 2013, the most recent actuarial valuation date, is as follows: Actuarial UAAL as a Actuarial Actuarial Value Accrued Unfunded Percentage of Valuation Date of Assets Liability (AAL) Funded Ratio AAL (UAAL) Covered Payroll Covered Payroll 12/31/2013 $ - $ 493,114 0.0% $ 493,114 $ 14,356,845 3.4% Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of events far into the future. Actuarially determined amounts are subject to continual revisions as actual results are compared to past expectations and new estimates are made about the future. Actuarial calculations are based on the benefits provided under the terms of the substantive plan in effect at the time of each valuation, and reflect a long -term perspective. Consistent with that perspective, actuarial methods and assumptions used to include techniques that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets. The schedule of funding progress, presented as Required Supplementary Information following the notes to the financial statements, presents multi -year information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability of benefits. W CITY OF SCHERTZ, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) SEPTEMBER 30, 2014 NOTE 12 - JOINT VENTURES 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 fiend and totaled $1,432,074 for the year ended September 30, 2014. Separate financial statements for the Schertz /Seguin Local Government Corporation may be obtained from the City of Seguin, 210 East Gonzales Street, Seguin, Texas 781.56. 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, 2013: ASSETS: Current Assets $ 6,426,218 Restricted Cash and Cash Equivalents 23,684,301 Property, Plant & Equipment (net) 78,465,951 Other Assets 2,300,213 TOTAL ASSETS 110,876,683 LIABILITIES: Current Liabilities 9,463,232 Revenue Bonds (Less Current Maturities) 99,486,517 TOTAL LIABILITIES 108,949,749 NET POSITION: Net Investment in Capital Assets (4,723,901) Restricted 4,568,930 Unrestricted 2,081,905 TOTAL NET POSITION $ 1,926,934 The Corporation had revenue bonds outstanding in the amount of $101,176,000 (as of September 30, 2013) 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 intergovernmental 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. 51 CITY OF SCHERTZ, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) SEPTEMBER 30, 2014 NOTE 12 - JOINT VENTURES (Continued) Cibolo Valley Local Government Corporation The Cibolo Valley Local Government Corporation (CVLGC) is a public nonprofit corporation incorporated in March 2012 to assist and act on behalf of the cities of Schertz, Converse and Cibolo to obtain additional water sources. 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. Separate financial statements for the CVLGC 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, City of Converse, and City of Cibolo, for operating deficits and long -term debt of CVLGC. Following is a summary of financial data as reported in the Corporation's audited financial statements dated September 30, 2013: ASSETS: Current Assets $ 563,1.85 TOTAL ASSETS 563,185 LIABILITIES: Current Liabilities 26,401 TOTAL LIABILITIES 26,401 NET POSITION: Unrestricted 536,784 TOTAL NET POSITION $ 536,784 Cibolo Creek Municipal Authority Cibolo Creek Municipal Authority (COMA) provides sewage treatment for the area in and around the City. CCMA has agreed to construct a sewage treatment facility in the southern portion of the City to primarily serve citizens of the City but also neighboring Cities and future development. Because the City would be the primary customer at this time, the City agreed to enter into a regional wastewater treatment contract in September 2014. CCMA will issue bonds to finance the project and the City has agreed to make payments to CCMA to cover operation expenses, maintenance expenses, and debt service. The City is the sole member at this time, so it is responsible for 100% of the project costs. Should other members join, the City's share of the costs would be reduced. 52 CITY OF SCHERTZ, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) SEPTEMBER 30, 2014 NOTE 12 - JOINT VENTURES (Continued) Ciholo Creek Municipal Authority (Continued) In September 2014, CCMA issued bonds for the project in the amount of $6,950,000 with debt service requirements as follows: Fiscal Year Ending September 30, Principal 2015 $ 75,000 2016 . 1.45,000 2017 150,000 2018 1.50,000 2019 155,000 2020 -2024 830,000 2025 -2029 970,000 2030 -2034 1,180,000 2035 -2039 1,465,000 2040 -2044 1,830,000 $ 6,950,000 NOTE 13 - COMMITMENTS AND CONTINGENCIES Tax Increment Financing (the "Zone') Interest Total $ 267,650 266,1.50 263,250 260,250 257,250 1,233,350 1,087,650 877,450 592,500 225,200 $ 5,330,700 $ 342,650 411,1.50 413,250 410,250 412,250 2,063,350 2,057,650 2,057,450 2,057,500 2,055,200 $12,280,700 The City is a principal in the City of Schertz Tax Increment Reinvestment Zone #2, 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 (SARA). The City of Schertz (combined with SARA) have committed up to $32,877,000 of the total $45,000,000. The Zone has a statutory termination date of December 31, 2027. The TIRZ has collected $368,610 from taxing entities (net of administrative reimbursements) and remitted $50,376 to the developer as of September 30, 2014. 380 Agreements To encourage economic growth, the City has entered into various 380 agreements with businesses in the City. These agreements involve rebates of future ad valorem taxes and or sales taxes. These agreements are rebates of future taxes, and should not have a significant impact on current tax base in future years. Once the terms of the 380 agreements expire, the tax base of the City will be increased to include these new businesses. 53 CITY OF SCHERTZ, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) SEPTEMBER 30, 2014 NOTE 13 - COMMITMENTS AND CONTINGENCIES (Continued) Construction Commitments The City of Schertz has entered into commitments for various projects as follows: Primary Government: Governmental Activities: Ware Seguin Road Improvements Lower Seguin Road Improvements Lazy Oak Drive Laura Heights Projects Natatorium Project Soccer Fields Improvements Schertz Animal Adoption Center FM 78 and Main Street Woodland Oaks Detention Total Governmental Commitments Business -Type Activities: S. W.W. Treatment Plant Town Creek Sewer Project - Phase III East Live Oak Water Plan Upgrades SE Quad Elevated Tank Aviation Heights Waterline Replacement Northcliffe Waterline Upgrades Waterline at Maske Rd- FM1518 Commercial Place Project Total Business -Type Activities Total Estimated Future Commitments Estimated Project Cost to City $ 487,499 541,841 172,420 80,394 6,160,500 4,051,000 2,415,100 1,000,000 32,000 1.4,940,754 3,985,000 695,807 245,000 200,552 400,000 730,064 367,735 2,135,723 8,759,881. $ 23,700,635 El Expended to Date $ 472,516 134,215 103,610 40,043 320,152 3,652,109 2,383,806 20,430 5,830 7,132,711 223,811 76,414 22,847 14,346 32,481 700,634 337,295 1,783,485 3,191,313 $ 10,324,024 Estimated Future Commitment $ 14,983 407,626 68,810 40,351 5,840,348 398,891 31,294 979,570 26,170 7,808,043 3,761,189 619,393 222,153 186,206 367,519 29,430 30,440 352,238 5,568,568 $ 13,376,611 CITY OF SCHERTZ, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) SEPTEMBER 30, 2014 NOTE 13 - COMMITMENTS AND CONTINGENCIES (Continued) 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. Risk Management 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, 2014 were $379,140 for property and casualty and workers compensation coverage. There were no significant increases or decreases in coverage from fiscal year 2013. NOTE 14 - SUBSEQUENT EVENTS In January 2015, the City issued Tax Notes, Series 2015 for a principal amount of $2,125,000. The notes mature serially through 2021 and bear interest at 1.75 %. The notes were issued to purchase various vehicles and equipment. The debt service will be paid by the activities receiving the equipment. hC��IL�if�i�L� � ► � Y.Y�1�litZ.TKK� J1� ►MM1►[- • ._ ��[�1�1�[� � ►i ' ► y In June 2012, the GASB issued Statement 68, Accounting and Financial Reporting for Pensions — an Amendment of GASB Statement 27. The statement improves information provided by governments for defined benefit retirement plans. The Statement is effective for fiscal years beginning after June 15, 2014. Management is currently evaluating the impact of the adoption of this statement on the City's financial statements and it may be significant. W REQUIRED SUPPLEMENTARY INFORMATION m CITY OF SCHERTZ, TEXAS REQUIRED SUPPLEMENTARY INFORMATION GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL YEAR ENDED SEPTEMBER 30, 2014 Public Safety. Police Department 5,456,518 5,468,000 5,432,623 Variance With Fire Department 3,022,948 3,052,134 2014 Final Budget - Inspection Budgeted Amounts Actual Positive 41,466 Original Final Amounts (Negative) REVENUES Total Public Safety 9,602,221 9,672,931 9,568,062 Taxes $ 15,595,829 $ 16,120,391 $ 16,652,245 $ 531,854 Permits and Fees 1,077,162 1,275,162 1,365,624 90,462 Service Fees 1,338,588 1,491,998 1,592,851 1.00,853 Fines and Fees 2,188,680 1,871,680 1,712,562 (1.59,118) Intergovernmental 229,000 229,000 218,081 (10,919) Investment Earnings 19,575 19,575 13,657 (5,918) Miscellaneous 502,100 512,325 547,515 35,190 TOTAL REVENUES 20,950,934 21,520,131 22,102,535 582,404 EXPENDITURES General Government: Council 83,075 88,375 81,048 7,327 City Manager 984,533 950,368 939,236 1.1,132 Municipal Court 400,621 400,621 361,365 39,256 31.1 Customer Relations 1 12,272 1 12,790 112,771 19 Planning & Zoning 1 55,482 1 55,482 140,107 1.5,375 Legal 450,000 450,000 305,524 144,476 General Services 1,012,532 1,012,532 922,1.56 90,376 City Secretary 189,876 189,876 179,657 10,219 Nondepartmental 1,480,041 1,454,395 1,002,71.4 451,681 Community & Media Relations 343,115 269,690 220,717 48,973 Records Management 69,037 69,037 57,365 11,672 Schertz Magazine 406,684 406,684 363,659 43,025 Engineering 259,672 295,026 175,445 119,581 Geographic Information Systems 142,703 1.42,703 137,752 4,951 Citizens Assistance 74,000 74,000 87,648 (1.3,648) Special Events 1.41,950 1.94,807 155,676 39,131 Total General Government 6,305,593 6,266,386 5,242,840 1,023,546 Public Safety. Police Department 5,456,518 5,468,000 5,432,623 35,377 Fire Department 3,022,948 3,052,134 3,036,331 15,803 Inspection 471,768 501,810 460,344 41,466 Marshal Service 650,987 650,987 638,764 12,223 Total Public Safety 9,602,221 9,672,931 9,568,062 1.04,869 Public Environment: Streets 1,072,407 1,1.05,905 1,076,136 29,769 Total Public Environment $ 1,072,407 $ 1,105,905 $ 1,076,136 $ 29,769 IN CITY OF SCHERTZ, TEXAS REQUIRED SUPPLEMENTARY INFORMATION GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (CONTINUED) YEAR ENDED SEPTEMBER 30, 2014 Administration. Information Technology 1,261,414 1,452,402 1,490,941 Variance With Human Resources 414,508 414,508 2014 Final Budget - Finance Budgeted Amounts Actual Positive 7,163 Original Final Amounts (Negative) EXPENDITURES (Continued) Building Maintenance 298,529 338,529 224,414 Parks and Recreation: Fleet Service 490,646 490,646 531,903 Parks $ 834,854 $ 837,944 $ 873,978 $ (36,034) Pools 254,503 254,503 21.6,967 37,536 Community /Civic Center 142,522 142,522 126,693 15,829 Senior Center - 53,615 50,391 3,224 Total Parks and Recreation 1,231,879 11288,584 11268,029 20,555 Cultural: Library 874,697 836,476 794,434 42,042 Total Cultural 874,697 836,476 794,434 42,042 Health: Animal Control 454,136 454,136 394,918 59,218 Total Health 454,136 454,136 394,918 59,218 Administration. Information Technology 1,261,414 1,452,402 1,490,941 (38,539) Human Resources 414,508 414,508 400,035 14,473 Finance 470,977 473,301 466,1.38 7,163 Purchasing & Asset Management 267,159 267,1.59 249,651 1.7,508 Building Maintenance 298,529 338,529 224,414 114,115 Fleet Service 490,646 490,646 531,903 (41,257) Interfund Charges (1,753,162) (1,753,162) (1,751,607) (1,555) Total Administration 1,450,071 1,683,383 1,611,475 71,908 TOTAL EXPENDITURES 20,991,004 21,307,801 19,955,894 1,351,907 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (40,070) 212,330 2,1.46,641 1,934,311 OTHER FINANCING SOURCES (USES) Lease Proceeds - - 1.33,715 133,715 Transfers In 257,150 294,578 89,416 (205,162) Transfers Out (5,150) (483,400) (664,944) (181,544) TOTAL OTHER FINANCING SOURCES (USES) 252,000 (188,822) (441,813) (252,991) NET CHANGE IN FUND BALANCE 211,930 23,508 1,704,828 1,681,320 FUND BALANCE - BEGINNING 6,017,206 6,017,206 6,017,206 - FUND BALANCE - ENDING $ 6,229,136 $ 6,040,714 $ 7,722,034 $ 1,681,320 w CITY OF SCHERTZ, TEXAS REQUIRED SUPPLEMENTARY INFORMATION ECONOMIC DEVELOPMENT CORPORATION SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES — BUDGET AND ACTUAL YEAR ENDED SEPTEMBER 30, 2014 EXPENDITURES Current: Variance With General Government 2014 Final Budget - 565,322 Budgeted Amounts Actual Positive 1,063,544 Original Final Amounts (Negative) REVENUES Taxes $ 3,095,036 $ 3,440,944 $ 3,521,338 $ 80,394 Investment Earnings 10,175 10,175 9,599 (576) TOTAL REVENUES 3,105,211 3,451,119 3,530,937 79,818 EXPENDITURES Current: General Government 1,217,200 1,217,200 565,322 651,878 Administration 1,063,544 1,063,544 519,831 543,713 Debt Service: Principal 400,000 400,000 400,000 - Interest 27,672 27,672 27,671 1 TOTAL EXPENDITURES 2,708,416 2,708,416 1,512,824 1,195,592 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 396,795 742,703 2,018,113 1,275,410 OTHER FINANCING SOURCES (USES) Transfers Out (366,138) (366,138) (367,743) (1,605) TOTAL OTHER FINANCING SOURCES (USES) NET CHANGE IN FUND BALANCE FUND BALANCE - BEGINNING FUND BALANCE - ENDING (366,138) (366,138) (367,743) (1,605) 30,657 376,565 1,650,370 1,273,805 6,142,208 6,142,208 6,142,208 $ 6,1.72,865 $ 6,518,773 $ 7,792,578 $ 1,273,805 ®' CITY OF SCHERTZ, TEXAS NOTES TO SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE — BUDGET AND ACTUAL SEPTEMBER 30, 2014 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; hotel motel tax, park fund, tree mitigation; police forfeiture fund, library advisory board fund, and the historical committee fund. Project - length financial plans are adopted for capital projects funds. Of these budgets, only the General Fund, Debt Service and Economic Development Corporation are legally adopted. Budgetary preparation and control is exercised at the department level. Actual expenditures may not legally exceed appropriations at the fund level. The City did not exceed the budgeted expenditures in any funds with legally adopted budgets during 2014. The City does not use encumbrances. •1 CITY OF SCHERTZ, TEXAS REQUIRED SUPPLEMENTARY INFORMATION TEXAS MUNICIPAL RETIREMENT SYSTEM ANALYSIS OF FUNDING PROGRESS LAST TEN CALENDAR YEARS * As of December 31 of the preceding year, the date of the actuarial valuation. * * Assets are stated cost as of December 31 of the preceding year. 61 UNFUNDED ACTUARIAL ACCRUED LIABILITY UNFUNDED AS ACTUARIAL ACTUARIAL ACTUARIAL FUNDING ACTUARIAL ANNUAL PERCENTAGE VALUATION VALUE OF ACCRUED RATIO ACCRUED COVERED OF COVERED DATE ASSETS" LIABILITY* (1)/(2) LIABILITY PAYROLL PAYROLL 2013 $ 30,541,625 $ 45,615,815 67.0% $1.5,074,190 $ 1.4,356,845 105.0% 2012 26,273,784 38,771,665 67.8% 12,497,881 13,853,458 90.2% 2011 22,377,323 35,296,880 63.4% 12,919,557 13,125,349 98.4% 2010 18,696,437 31,792,634 58.8% 13,096,197 12,612,346 103.8% 2009 13,946,029 25,584,067 54.5% 11,638,038 12,321,349 94.5% 2008 11,216,663 22,068,312 50.8% 10,851,649 11,626,232 93.3% 2007 8,811,205 19,057,935 46.2% 10,246,730 10,047,726 102.0% 2006 7,290,175 11,798,002 61.8% 4,507,827 8,478,634 53.2% 2005 6,042,437 9,003,970 67.1% 2,961,533 7,662,928 38.6% 2004 5,122,816 7,950,619 64.4% 2,827,803 6,144,053 46.0% * As of December 31 of the preceding year, the date of the actuarial valuation. * * Assets are stated cost as of December 31 of the preceding year. 61 ACTUARIAL VALUATION r)ATF 12/31/2013 CITY OF SCHERTZ, TEXAS REQUIRED SUPPLEMENTARY INFORMATION RETIREE HEALTH INSURANCE PLAN ANALYSIS OF FUNDING PROGRESS LAST CALENDAR YEAR UNFUNDED ACTUARIAL ACCRUED LIABILITY AS A PERCENTAGE OF COVERED PAYROLL (b -a) /d 0.0% $ 14,356,845 3.4% The actuarial valuation conducted as of December 31, 2013 . was the first for the plan. 62 ANNUAL UNFUNDED ACTUARIAL ACTUARIAL ACTUARIAL VALUE OF ACCRUED ACCRUED ASSETS LIABILITY* LIABILITY (a) (b) (b -a) $ - $ 493,114 $ 493,114 UNFUNDED ACTUARIAL ACCRUED LIABILITY AS A PERCENTAGE OF COVERED PAYROLL (b -a) /d 0.0% $ 14,356,845 3.4% The actuarial valuation conducted as of December 31, 2013 . was the first for the plan. 62 ANNUAL FUNDING COVERED RATIO PAYROLL (a/b) (d) UNFUNDED ACTUARIAL ACCRUED LIABILITY AS A PERCENTAGE OF COVERED PAYROLL (b -a) /d 0.0% $ 14,356,845 3.4% The actuarial valuation conducted as of December 31, 2013 . was the first for the plan. 62 rr SUPPLEMENTARY INFORMATION • Comparative Statements • General Fund • Economic Development Corporation • Debt Service Fund • Capital Projects Fund Combining and Comparative Individual Fund Statements - Nonmajor Governmental Funds • Hotel Occupancy - will account for proceeds of hotel occupancy taxes to be used strictly for those kinds of programs that promote the tourism industry. • Tree Mitigation Fund - will account for revenues from permits, grants and donations to preserve and replace trees in the City. • 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. • Police Forfeitures Fund - will account for revenue received from drug related cases in conjunction with other law enforcement agencies. • Library Advisory Board — to account for certain fees generated at the library to be used by the Board for general improvements to the Library. • Historical Committee Fund - will account for funds received for the preservation of the history of the city. • Parks and Recreation Foundation — to account for revenues from events, fundraisers and donations to improve and maintain City parks. 63 CITY OF SCHERTZ, TEXAS COMPARATIVE BALANCE SHEETS GENERAL FUND SEPTEMBER 30, 2014 AND 2013 a 2014 2013 ASSETS Cash and Cash Equivalents $ 734,684 $ 169,823 Investments 6,895,148 4,884,186 Receivables (net of allowances): Taxes 1,725,512 1,640,179 Accounts and Other 1,987,843 1,986,715 Due from Other Funds - 467,407 Inventory 88,518 50,768 Prepaid Items 8,133 - Restricted Cash 425,864 443,360 TOTAL ASSETS $ 11,865,702 $ 9,642,438 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts Payable $ 1,241,009 $ 931,146 Accrued Salaries and Benefits 456,962 353,809 Customer Deposits 42,513 33,916 Due to Other Governments 205,303 231,399 Due to Other Funds 138,926 - Unearned Revenue 28,285 47,386 Total Liabilities 2,112,998 1,597,656 Deferred Inflows of Resources: Unavailable Revenue 2,030,670 2,027,576 Fund Balance: Nonspendable: Inventory 88,518 50,768 Prepaid Items 8,133 - Restricted for: Police and Public Safety 139,884 101,303 Municipal Court 628,459 646,422 PEG Capital Fees 489,509 456,175 Scholarships 54,176 - Assigned for: Property Replacement 694,916 456,034 Special Events 31,177 99,770 Unassigned 5,587,262 4,206,734 Total Fund Balance 7,722,034 6,017,206 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCE $ 11,865,702 $ 9,642,438 a CITY OF SCHERTZ, TEXAS COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GENERAL FUND FOR THE YEARS ENDED SEPTEMBER 30, 2014 AND 2013 REVENUES Taxes Permits and Fees Service Fees Fines and Fees Intergovernmental Investment Earnings Miscellaneous TOTAL REVENUES EXPENDITURES Current: General Government Public Safety Public Environment Parks and Recreation Cultural Health Administration Capital Outlay Debt Service: Principal Interest and Fiscal Charges TOTAL EXPENDITURES Excess (Deficiency) of Revenues Over (Under) Expenditures OTHER FINANCING SOURCES (USES) Lease Proceeds Transfers In Transfers Out TOTAL OTHER FINANCING SOURCES (USES) Net Change in Fund Balance Fund Balance at Beginning of Year Fund Balance at End of Year m 2014 2013 $ 16,652,245 1,365,624 1,592,851 1,712,562 218,081 13,657 547,515 22,102,535 5,232,687 9,398,845 1,012,607 1,100,971 794,434 394,918 1,604,825 383,264 32,764 579 19,955,894 S 15,411,501 1,398,781 1,541,839 1,870,825 464,979 10,247 584,214 21,282,386 5,552,150 9,113,840 951,528 1,120,724 830,149 341,961 933,705 221,562 37,792 913 19,104,324 2,146,641 2,178,062 133,715 89,416 (664,944) (441,813) 1,704,828 61,226 (198,899) (137,673) 2,040,389 6,017,206 3,976,817 $ 7,722,034 $ 6,017,206 CITY OF SCHERTZ, TEXAS COMPARATIVE BALANCE SHEETS ECONOMIC DEVELOPMENT CORPORATION SEPTEMBER 30, 2014 AND 2013 ASSETS Cash and Cash Equivalents Investments Receivables (net of allowances): Taxes Accounts and Other Note Receivable TOTAL ASSETS LIABILITIES AND FUND BALANCE Liabilities: Accounts Payable Accrued Salaries and Benefits Total Liabilities Fund Balance: Nonspendable: Note Receivable Restricted for: Economic Development Total Fund Balance TOTAL LIABILITIES AND FUND BALANCE 2014 2013 $ 293,205 $ 318,397 6,961,045 5,152,452 567,202 569,259 1,888 1,197 - 120,080 $ 7,823,340 $ 6,161,385 $ 9,658 $ 11,034 21,104 8,143 30,762 19,177 120,080 7,792,578 6,022,128 7,792,578 6,142,208 $ 7,823,340 $ 6,161,385 CITY OF SCHERTZ, TEXAS COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE ECONOMIC DEVELOPMENT CORPORATION FOR THE YEARS ENDED SEPTEMBER 30, 2014 AND 2013 REVENUES Taxes Investment Earnings TOTAL REVENUES EXPENDITURES Current: General Government Administration Debt Service: Principal Interest and Fiscal Charges TOTAL EXPENDITURES Excess (Deficiency) of Revenues Over (Under) Expenditures OTHER FINANCING SOURCES (USES) Transfers Out TOTAL OTHER FINANCING SOURCES (USES) Net Change in Fund Balance Fund Balance at Beginning of Year Fund Balance at End of Year M 2014 2013 . $ 3,521,338 $ 3,215,620 9,599 8,821 3,530,937 3,224,441 565,322 572,880 519,831 197,859 400,000 390,000 27,671 38,504 1,512,824 1,199,243 2,018,1.1.3 2,025,198 (367,743) (369,075) (367,743) (369,075) 1,650,370 1,656,123 6,142,208 4,486,085 $ 7,7927578 $ 6,142,208 CITY OF SCHERTZ, TEXAS COMPARATIVE BALANCE SHEETS DEBT SERVICE FUND SEPTEMBER 30, 2014 AND 2013 ASSETS Cash and Cash Equivalents Investments Receivables (net of allowances): Taxes TOTAL ASSETS LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCE Liabilities: Accounts Payable Accrued Interest Payable Total Liabilities Deferred Inflows of Resources: Unavailable Revenue Fund Balance: Restricted for: Debt Service Total Fund Balance TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCE • 2014 2013 . $ 34,988 $ 118,850 624,189 398,749 68,928 71,174 $ 728,105 $ 588,773 $ - $ 400 33,742 - 33,742 400 68,928 71,174 625,435 517,199 625,435 517,199 $ 728,1.05 $ 588,773 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, 2014 (WITH COMPARATIVE ACTUAL TOTALS FOR 2013) •• Variance with 2014 Final Budget- 2013 Budgeted Amounts Actual Positive Actual Original Final Amounts (Negative) Amounts REVENUES Property Taxes $ 5,204,493 $ 5,204,493 $ 5,295,577 $ 91,084 $ 5,051,475 Investment Earnings 25,075 25,075 1,477 (23,598) 2,012 TOTAL REVENUES 5,229,568 5,229,568 5,297,054 67,486 5,053,487 EXPENDITURES Debt Service: Principal 3,262,834 3,262,834 3,262,833 1 2,789,533 Interest and Fiscal Charges 2,291,591 2,291,591 2,080,360 211,231 2,341,754 Bond Issue Costs 42,350 42,350 165,650 (123,300) 1,750 TOTAL EXPENDITURES 5,596,775 5,596,775 5,508,843 87,932 5,133,037 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (367,207) (367,207) (211,789) 155,418 (79,550) OTHER FINANCING SOURCES Transfers In 367,207 367,207 366,138 (1,069) 369,075 Proceeds from Refunding Bonds - - 8,450,000 8,450,000 - Premiums from Refunding Bonds - - 686,137 686,137 - Payments to Refunding Escrow Agent - - (9,182,250) (9,182,250) - TOTAL OTHER FINANCING SOURCES 367,207 367,207 320,025 (47,182) 369,075 Net Change in Fund Balance - - 108,236 108,236 289,525 FUND BALANCE, BEGINNING 517,199 517,199 517,199 - 227,674 FUND BALANCE, ENDING $ 517,199 $ 517,199 $ 625,435 $ 108,236 $ 517,199 •• CITY OF SCHERTZ, TEXAS COMPARATIVE BALANCE SHEETS CAPITAL PROJECTS FUND SEPTEMBER 30, 2014 AND 2013 ASSETS Cash and Cash Equivalents Investments Receivables (net of allowances): Accounts and Other Prepaid Items TOTAL ASSETS LIABILITIES AND FUND BALANCE Liabilities: Accounts Payable Due to Other Funds Total Liabilities Fund Balance: Nonspendable Prepaid Items Restricted for Capital Improvement Committed for Capital Improvement Assigned for Capital Improvement Total Fund Balance TOTAL LIABILITIES AND FUND BALANCE HE 2014 2013 . $ 1,084,721 $ 259,881 9,792,513 16,797,740 - 73,895 - 754,443 $ 10,877,234 $ 1.7,885,959 $ 469,483 $ 664,745 776,005 795,804 1,245,488 1,460,549 - 754,443 9,600,028 15,360,800 31,718 165,000 - 145,167 9,631,746 1.6,425,41.0 $ 10,877,234 $ 17,885,959 CITY OF SCHERTZ, TEXAS COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE CAPITAL PROJECTS FUND FOR THE YEARS ENDED SEPTEMBER 30, 2014 AND 2013 REVENUES Intergovernmental Investment Earnings Miscellaneous TOTAL REVENUES EXPENDITURES Current: General Government Capital Outlay Debt Service: Bond Issue Costs TOTAL EXPENDITURES Excess (Deficiency) of Revenues Over (Under) Expenditures OTHER FINANCING SOURCES (USES) Proceeds from Issuances of Debt Transfers In TOTAL OTHER FINANCING SOURCES (USES) Net Change in Fund Balance Fund Balance at Beginning of Year Fund Balance at End of Year 71 2014 $ 3,688 $ 27,353 17,429 31,572 - 7,500 21,117 66,425 46,542 - 7,530,597 2,931,207 - 30,000 7,577,139 2,961,207 (7,556,022) (2,894,782) - 1,635,000 762,358 337,051 762,358 1,972,051. (6,793,664) (922,731) 16,425,41.0 17,348,141 $ 9,631.1746 $ 16,425,410 CITY OF SCHERTZ, TEXAS COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2014 . ASSETS Cash and Cash Equivalents Investments Accounts Receivable, Net of Allowance Taxes Other Prepaid Items TOTAL ASSETS LIABILITIES AND FUND BALANCE Liabilities Accounts Payable Total Liabilities Fund Balance Nonspendable Prcpaids Restricted for: Tourism Development Tree Mitigation Parks Police Forfeiture Library Historical Committee Total Fund Balances TOTAL LIABILITIES AND FUND BALANCE Special Revenue Funds Hotel Occupancy Park Tree Fund Fund Mitigation $ 165,308 $ 203,633 $ 261,866 299,187 1,355 97,339 38,093 - - 13,602 - - 516,190 $ 204,988 $ 359,205 $ 592 $ 1.2,840 $ - 592 12,840 - 13,602 - - 501,996 - - - - 359,205 192,148 - 515,598 1.92,1.48 359,205 $ 516,190 $ 204,988 $ 359,205 72 Special Revenue Funds Police Library Parks & Historical Forfeitures Advisory Recreation Committee Fund Board Foundation Fund Totals $ 53,737 $ 29,623 $ 121,369 $ 9,567 $ 845,103 338,989 44,855 - - 781,725 - - - - 38,093 140 - 140 - - - - 13,602 $ 392,726 $ 74,478 $ 121,509 $ 9,567 $ 1,678,663 $ 3,346 $ 5,947 $ 9,002 $ - $ 31,727 3,346 5,947 9,002 - 31,727 - - 13,602 - - 501,996 - - 359,205 - - 112,507 - 304,655 389,380 - - - 389,380 - 68,531 - - 68,531 - - - 9,567 9,567 389,380 68,531 112,507 9,567 1,646,936 $ 392,726 $ 74,478 $ 121,509 $ 9,567 $ 1,678,663 73 CITY OF SCHERTZ, TEXAS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES — NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2014 REVENUES Occupancy Tax Permits and Fees Service Fees Fines and Fees Investment Earnings Miscellaneous TOTAL REVENUES EXPENDITURES Current: General Government Public Safety Parks and Recreation Cultural Administration 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, Beginning Special Revenue Funds Hotel Occupancy Park Tree Fund Fund Mitigation $ 552,570 $ - $ - - 198,150 241,273 390 34 - 2,781 229 552,960 200,965 241,502 134,311 - - 12,840 39,956 145,385 - - 279,696 12,840 39,956 273,264 188,125 201,546 (227,916) - - (227,916) - - 45,348 188,125 201,546 470,250 4,023 1.57,659 Fund Balances, Ending $ 515,598 $ 192,148 $ 359,205 m Special Revenue Funds Police Library Parks & Historical Forfeitures Advisory Recreation Committee Fund Board Foundation Fund Totals - $ - $ - $ - $ 552,570 - 439,423 21,686 149,427 - 171,113 37,749 - - - 37,749 322 59 48 - 853 - 51 77,979 161 81,201 38,071 21,796 227,454 161 1,282,909 - - - 2,577 136,888 11,049 - - - 11,049 - - 184,465 - 237,261 21,257 - - 21,257 - - - 145,385 - - 86,606 - 86,606 11,049 21,257 271,071 2,577 638,446 27,022 539 (43,617) (2,416) 644,463 23,500 2,421 25,921 (33,229) - - - (261,145) (33,229) - 23,500 2,421 (235,224) (6,207) 539 (20,1.1.7) 5 409,239 395,587 67,992 132,624 9,562 1,237,697 $ 389,380 $ 68,531 $ 112,507 $ 9,567 $ 1,646,936 Is 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, 2014 (WITH COMPARATIVE ACTUAL TOTALS FOR 2013) . Excess (Deficiency) of Revenues Over (Under) Expenses 115,912 115,912 273,264 157,352 160,915 OTHER FINANCING SOURCES (USES) Transfers Out (138,650) (289,722) (227,916) 61,806 (81,226) TOTAL OTHER FINANCING SOURCES (USES) (138,650) (289,722) (227,916) 61,806 (81,226) Net Change in Fund Balance (22,738) (173,810) 45,348 219,158 79,689 FUND BALANCE, BEGINNING 470,250 470,250 470,250 - 390,561 FUND BALANCE, ENDING $ 447,512 $ 296,440 $ 515,598 $ 219,158 $ 470,250 m Variance with 2014 Final Budget- 2013 Budgeted Amounts Actual Positive Actual Original Final Amounts (Negative) Amounts REVENUES Occupancy Tax $ 485,000 $ 485,000 $ 552,570 $ 67,570 $ 503,267 Investment Earnings 550 550 390 (160) 512 TOTAL REVENUES 485,550 485,550 552,960 67,410 503,779 EXPENDITURES Current: General Government 204,253 204,253 134,311 69,942 185,347 Administration 145,385 145,385 145,385 - 157,517 Capital Outlay 20,000 20,000 - 20,000 - TOTAL EXPENDITURES 369,638 369,638 279,696 89,942 342,864 Excess (Deficiency) of Revenues Over (Under) Expenses 115,912 115,912 273,264 157,352 160,915 OTHER FINANCING SOURCES (USES) Transfers Out (138,650) (289,722) (227,916) 61,806 (81,226) TOTAL OTHER FINANCING SOURCES (USES) (138,650) (289,722) (227,916) 61,806 (81,226) Net Change in Fund Balance (22,738) (173,810) 45,348 219,158 79,689 FUND BALANCE, BEGINNING 470,250 470,250 470,250 - 390,561 FUND BALANCE, ENDING $ 447,512 $ 296,440 $ 515,598 $ 219,158 $ 470,250 m CITY OF SCHERTZ, TEXAS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET TO ACTUAL PARK FUND FOR THE YEAR ENDED SEPTEMBER 30, 2014 (WITH COMPARATIVE ACTUAL TOTALS FOR 2013) Excess (Deficiency) of Revenues Over (Under) Expenditures 110,300 110,300 188,125 Variance with OTHER FINANCING USES 2014 Final Budget- 2013 - Budgeted Amounts Actual Positive Actual - Original Final Amounts (Negative) Amounts REVENUES FUND BALANCE, BEGINNING 4,023 4,023 4,023 - (38,724) Licenses and Permits $ 150,000 $ 150,000 $ 198,150 $ 48,150 $ 192,000 Investment Earnings 300 300 34 (266) 225 Miscellaneous - - 2,781 2,781 - TOTAL REVENUES 150,300 150,300 200,965 50,665 192,225 EXPENDITURES Current: Parks and Recreation - 12,840 12,840 (12,840) 10,594 Capital Outlay 40,000 27,160 - 40,000 - TOTAL EXPENDITURES 40,000 40,000 12,840 27,160 10,594 Excess (Deficiency) of Revenues Over (Under) Expenditures 110,300 110,300 188,125 77,825 181,631 OTHER FINANCING USES Transfers Out - - - - (138,884) TOTAL OTHER FINANCING - - - - (138,884) Net Change in Fund Balance 110,300 110,300 188,125 77,825 42,747 FUND BALANCE, BEGINNING 4,023 4,023 4,023 - (38,724) FUND BALANCE, ENDING $ 114,323 $ 114,323 $ 192,148 $ 77,825 $ 4,023 M CITY OF SCHERTZ, TEXAS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET TO ACTUAL TREE MITIGATION FUND FOR THE YEAR ENDED SEPTEMBER 30, 2014 (WITH COMPARATIVE ACTUAL TOTALS FOR 2013) IN Variance with 2014 Final Budget- 2013 Budgeted Amounts Actual Positive Actual Original Final Amounts (Negative) Amounts REVENUES Licenses and Permits $ 35,000 $ 35,000 $ 241,273 $ 206,273 $ 19,173 Miscellaneous 200 200 229 29 1,842 TOTAL REVENUES 35,200 35,200 241,502 206,302 21,015 EXPENDITURES Current: Parks and Recreation 139,525 139,525 39,956 99,569 57,730 Capital Outlay - - - - 23,226 TOTAL EXPENDITURES 139,525 139,525 39,956 99,569 80,956 Net Change in Fund Balance (104,325) (104,325) 201,546 305,871 (59,941) FUND BALANCE, BEGINNING 157,659 157,659 157,659 - 217,600 FUND BALANCE, ENDING $ 53,334 $ 53,334 $ 359,205 $ 305,871 $ 157,659 IN 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, 2014 (WITH COMPARATIVE ACTUAL TOTALS FOR 2013) . REVENUES Fines and Fees Investment Earnings TOTAL REVENUES EXPENDITURES Current: Public Safety Capital Outlay TOTAL EXPENDITURES Excess (Deficiency) of Revenues Over (Under) Expenditures OTHER SOURCES (USES) Transfers Out TOTAL OTHER SOURCES Net Change in Fund Balance FUND BALANCE, BEGINNING FUND BALANCE, ENDING Variance with 2014 Final Budget- 2013 Budgeted Amounts Actual Positive Actual Original Final Amounts (Negative) Amounts $ 52,800 $ 52,800 $ 37,749 $ (15,051) $ 56,919 600 600 322 (278) 550 53,400 53,400 38,071 (15,329) 57,469 - - 11,049 (11,049) - 50,000 50,000 - 50,000 - 50,000 50,000 11,049 38,951 - 3,400 3,400 1 27,022 23,622 57,469 - 33,229 (33,229) (66,458) - - 33,229 (33,229) (66,458) - 3,400 36,629 (6,207) (42,836) 57,469 395,587 1 395,587 395,587 - 338,118 $ 398,987 $ 432,21.6 $ 389,380 $ (42,836) $ 395,587 m' CITY OF SCHERTZ, TEXAS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET TO ACTUAL LIBRARY ADVISORY BOARD FOR THE YEAR ENDED SEPTEMBER 30, 2014 (WITH COMPARATIVE ACTUAL TOTALS FOR 2013) EXPENDITURES Current: Cultural 34,500 34,500 21,257 1.3,243 1.0,446 TOTAL EXPENDITURES 34.500 34.500 21,257 1.3,243 10.446 Net Change in Fund Balance (9,240) (9,240) 539 Variance with FUND BALANCE, BEGINNING 67,992 67,992 67,992 2014 Final Budget- 2013 $ 58,752 Budgeted Amounts Actual Positive Actual Original Final Amounts (Negative) Amounts REVENUES Service Fees $ 21,200 $ 21,200 $ 21,686 $ 486 $ 20,772 Investment Earnings 60 60 59 (1) 61 Miscellaneous 4,000 4,000 51 (3,949) 1,764 TOTAL REVENUES 25,260 25,260 21,796 (3,464) 22,597 EXPENDITURES Current: Cultural 34,500 34,500 21,257 1.3,243 1.0,446 TOTAL EXPENDITURES 34.500 34.500 21,257 1.3,243 10.446 Net Change in Fund Balance (9,240) (9,240) 539 9,779 12,151 FUND BALANCE, BEGINNING 67,992 67,992 67,992 - 55,841 FUND BALANCE, ENDING $ 58,752 $ 58,752 $ 68,531 $ 9,779 $ 67,992 .E 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, 2014 (WITH COMPARATIVE ACTUAL TOTALS FOR 2013) REVENUES Sale of Merchandise TOTAL REVENUES EXPENDITURES Current General Government TOTAL EXPENDITURES Excess (Deficiency) of Revenues Over (Under) Expenditures Budgeted Amounts Original Final $ 500 $ 500 $ 5,650 5,650 2,577 3,073 5,650 5,650 2,577 3,073 2013 Actual 162 (5,150) (5,1.50) (2,416) 2,734 (737) OTHER FINANCING SOURCES (USES) Transfers In 5, 150 5,150 2,421 (2,729) 732 TOTAL OTHER FINANCING SOURCES (USES) 5,150 5,150 2,421 (2,729) 732 Net Change in Fund Balance - - 5 5 (5) FUND BALANCE, BEGINNING Variance with 2014 Final Budget - Actual Positive Amounts (Negative) $ 9,562 $ 9,562 $ 161 $ (339) $ 161 (339) _ 5,650 5,650 2,577 3,073 5,650 5,650 2,577 3,073 2013 Actual 162 (5,150) (5,1.50) (2,416) 2,734 (737) OTHER FINANCING SOURCES (USES) Transfers In 5, 150 5,150 2,421 (2,729) 732 TOTAL OTHER FINANCING SOURCES (USES) 5,150 5,150 2,421 (2,729) 732 Net Change in Fund Balance - - 5 5 (5) FUND BALANCE, BEGINNING 9,562 9,562 9,562 - 9,567 FUND BALANCE, ENDING $ 9,562 $ 9,562 $ 9,567 $ 5 $ 9,562 81 CITY OF SCHERTZ, TEXAS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET TO ACTUAL PARKS AND RECREATION FOUNDATION FOR THE YEAR ENDED SEPTEMBER 30, 2014 (WITH COMPARATIVE ACTUAL TOTALS FOR 2013) REVENUES Charges and Fees at Events Investment Earnings Miscellaneous Income and Donations TOTAL REVENUES EXPENDITURES Current Parks and Recreation Capital Outlay TOTAL EXPENDITURES Excess (Deficiency) of Revenues Over (Under) Expenditures OTHER FINANCING SOURCES (USES) Transfers In TOTAL OTHER FINANCING SOURCES (USES) Net Change in Fund Balance FUND BALANCE, BEGINNING FUND BALANCE, ENDING Budgeted Amounts Original Final 2014 Actual Amounts Variance with Final Budget- 2013 Positive Actual (Negative) Amounts $ 238,000 $ 238,000 $ 149,427 $ (88,573) $ 176,776 50 50 48 (2) 117 32,300 32,300 77,979 45,679 117,515 270,350 270,350 227,454 (42,896) 294,408 275,250 275,250 184,465 90,785 223,281 - - 86,606 (86,606) 101,402 275,250 275,250 271,071 4,179 324,683 (4,900) (4,900) (43,617) (38,717) (30,275) 23,500 23,500 23,500 - 20,000 23,500 23,500 23,500 - 20,000 18,600 18,600 (20,117) (38,717) (10,275) 132,624 132,624 132,624 - 142,899 $ 151,224 $ 151,224 $ 112,507 $ (38,717) $ 132,624 MN 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 Position by Component Change in Net Position 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 and sales tax. 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. Operating Information (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 it performs. CITY OF SCHERTZ, TEXAS NET POSITION, BY COMPONENT LAST TEN FISCAL YEARS Business -Type Activities Net Investment in Capital Assets $ Fiscal Year $ 24,783,839 2004 2005 2006 2008 Governmental Activities 428,712 1,253,711 Net Investment in Capital Assets $ 1.7,699,797 $ 13,257,031 $ 32,932,355 $ 47,327,175 Restricted 4,813,496 15,888,549 663,973 1,058,514 Unrestricted 8,014,574 1.0,373,267 13,763,070 11,029,326 Total Governmental Activities Net Position $ 30,527,867 $ 39,518,847 $ 47,359,398 $ 59,415,015 Business -Type Activities Net Investment in Capital Assets $ 24,970,976 $ 24,783,839 $ 18,788,933 $ 41,350,184 Restricted 428,712 1,253,711 1,995,213 - Unrestricted 5,377,968 9,879,126 23,658,181 10,286,447 Total Business -Type Activities Net Position $ 30,777,656 $ 35,916,676 $ 44,442,327 $ 51,636,631 Primary Government Net Investment in Capital Assets $ 42,670,773 $ 38,040,870 $ 51,721,288 $ 88,677,359 Restricted 5,242,208 17,142,260 2,659,186 1,058,514 Unrestricted 1.3,392,542 20,252,393 37,421,251 21,31.5,773 Total Primary Government Net Position $ 61,305,523 $ 75,435,523 $ 91,801,725 $ 111,051,646 ., TABLE 1 Fiscal Year 2009 2010 2011 2012 2013 2014 $ 57,324,482 $ 54,010,139 $ 55,415,699 $ 56,616,809 $ 57,543,618 $ 62,792,671 1,170,786 897,324 2,089,971 1,917,098 7,788,354 10,401,728 3,650,287 7,548,859 7,370,101 8,907,326 6,645,418 8,613,239 $ 62,145,555 $ 62,456,322 $ 64,875,771 $ 67,441,233 $ 71,977,390 $ 81,807,638 $ 50,047,301 $ 50,778,490 $ 51,838,589 $ 50,161,157 $ 53,071,836 $ 53,674,437 3,633,244 4,217,098 7,441,722 11,577,645 11,902,282 16,450,988 $ 53,680,545 $ 54,995,588 $ 59,280,311 $ 61,738,802 $ 64,974,118 $ 70,1.25,425 $ 107,371,783 $ 104,788,629 $ 107,254,288 $ 106,777,966 $ 110,615,454 $ 116,467,108 1,170,786 897,324 2,089,971 1,917,098 7,788,354 10,401,728 7,283,531 11,765,957 14,81.1,823 20,484,971 18,547,700 25,064,227 $ 115,826,100 $ 117,451,910 $ 124,156,082 $ 129,180,035 $ 136,951,508 $ 151,933,063 CITY OF SCHERTZ, TEXAS CHANGE IN NET POSITION LAST TEN FISCAL YEARS Business -Type Activities Fiscal Year 11. $ 3,982,768 6,403,122 856,260 384,696 400,630 231,149 547,206 823,818 13,629,649 2007 $ 5,808,552 5,920,046 1,864,450 944,529 454,662 272,730 897,628 1,420,086 17,582,683 11: $ 7,093,762 7,227,406 2,300,425 1,184, 866 492,991 330,736 1,364,194 1,984,151 21,978,531 Water and Sewer 2005 Expenses 9,502,039 Governmental Activities EMS General Government $ 3,707,036 Public Safety 5,558,596 Public Environment 782,654 Parks and Recreation 351,627 Cultural 341,957 Health 221,950 Administration 505,757 Interest and Other Fees 862,744 Total Governmental Activities Expenses 1.2,332,321 Business -Type Activities Fiscal Year 11. $ 3,982,768 6,403,122 856,260 384,696 400,630 231,149 547,206 823,818 13,629,649 2007 $ 5,808,552 5,920,046 1,864,450 944,529 454,662 272,730 897,628 1,420,086 17,582,683 11: $ 7,093,762 7,227,406 2,300,425 1,184, 866 492,991 330,736 1,364,194 1,984,151 21,978,531 Water and Sewer 8,937,553 9,821,823 9,502,039 12,379,584 EMS 3,789,791 3,474,249 5,114,911 2,976,112 Total Business -Type Activities 12,727,344 13,296,072 14,616,950 15,355,696 Total Primary Government Expenses $ 25,059,665 $ 26,925,721 $ 32,199,633 $ 37,334,227 Program Revenues Governmental Activities Charges for Service: General Government Public Safety Parks and Recreation Cultural Health 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 $ 1,125,236 1,475,618- 141,523 148,1.90 44,611 1,794,486 3,808,133 $ 810,142 1,684,786 143,254 151,028 44,178 1,573,944 5,382,779 $ 1,448,032 1,307,295 196,436 210,417 33,148 497,219 5,789,432 $ 1,497,472 1,643,635 155,168 219,749 41,390 595,401 12,595,635 8,537,797 9,790,111 9,481,979 16,748,450 9,308,362 11,223,658 13,007,618 13,620,440 3,443,429 3,904,818 5,017,343 3,1 50,428 2,055,366 3,148,100 2,755,376 5,190,039 14,807,1 57 $ 23,344,954 :• 1.8,276,576 $ 28,066,687 20,780,337 $ 30,262,316 21,960,907 $ 38,709,357 Fiscal Year 2009 2010 2011 2012 2013 . 2014 . $ 7,987,977 $ 7,892,516 $ 8,112,954 $ 7,802,092 $ 7,066,087 $ 6,958,530 7,755,056 7,897,298 8,390,740 9,103,676 9,567,595 10,025,703 2,740,755 2,966,642 3,152,119 3,586,087 3,622,834 3,740,538 1,193,525 1,593,075 1,673,098 1,584,605 1,807,559 1,807,136 769,928 809,323 876,339 916,967 907,676 870,159 377,125 345,455 374,516 357,658 344,647 407,114 734,584 1,084,430 1,321,055 1,117,044 1,180,656 1,942,312 1,818,984 2,230,452 2,251,472 2,302,912 3,340,951 2,352,856 23,377,934 24,819,191 26,152,293 26,771,041 27,838,005 28,104,348 1.3,568,065 1.4,434,709 15,280, 871 16,349,967 1.6,954,871 17,762,116 3,365,544 3,690,007 3,659,031 3,758,425 3,959,445 4,268,125 16,933,609 18,124,716 18,939,902 20,108,392 20,914,316 22,030,241 $ 40,311,543 $ 42,943,907 $ 45,092,195 $ 46,879,433 $ 48,752,321 $ 50,134,589 $ 1,720,279 $ 1,905,600 $ 1,495,563 $ 2,286,488 $ 2,230,800 $ 1,974,637 1,481,004 1,986,536 2,81.5,029 2,216,385 2,516,547 2,536,476 273,917 536,609 524,443 541,512 721,222 917,639 219,029 265,714 228,242 279,267 305,932 309,897 33,930 36,728 39,743 36,746 38,1.49 32,429 1,044,884 587,643 717,105 764,997 234,084 220,264 3,023,377 1,276,465 2,998,115 1,178,573 1,531,740 5,756,456 7,796,420 6,595,295 8,818,240 7,303,968 7,578,474 11,747,798 14,668,137 15,147,332 17,073,075 17,411,568 17,696,327 19,147,872 2,889,518 3,061,414 3,564,852 3,561,114 4,459,600 4,533,753 2,241,726 973,437 2,175,889 828,853 1,301,235 2,809,1.10 1.9,799,381 1.9,182,183 22,81.3,816 21,801,535 23,457,1.62 26,490,735 $ 27,595,801 $ 25,777,478 $ 31,632,056 $ 29,105,503 $ 31,035,636 $ 38,238,533 CITY OF SCHERTZ, TEXAS CHANGE IN NET POSITION (CONTINUED) LAST TEN FISCAL YEARS Fiscal Year 2005 2006 2007 2008 Net (Expenses) Revenue Governmental Activities $ (3,794,524) $ (3,839,538) $ (8,100,704) $ (5,230,081) Business -Type Activities 2,079,813 4,980,504 6,163,387 6,605,211 Total Primary Government Net Expenses $ (1,714,711) $ 1,140,966 $ (1,937,317) $ 1,375,130 Governmental Revenues and Other Changes in Net Position Governmental Activities Taxes: Ad Valorem Sales Franchise Fees Hotel /Motel Mixed Drink Bingo Unrestricted Investment Earnings Miscellaneous Transfers Total Governmental Activities Business -Type Activities Interest and Investment Earnings Miscellaneous Transfers Total Business -Type Activities Total Primary Government Changes In Net Position Government Activities Business -Type Activities Total Primary Government $ 4,908,108 $ 5,705,805 $ 7,309,127 $ 7,841,928 3,340,475 4,704,960 6,026,675 6,1 75,759 786,298 961,462 1,004,116 1,240,642 42,982 202,108 259,176 273,558 6,437 20,068 29,451 32,364 4,946 5,124 6,781 4,751 377,790 608,587 1,606,976 1,310,310 83,337 112,306 923,574 293,763 199,123 510,098 (1,224,621) - 9,749,496 12,830,518 15,941,255 17,173,075 170,610 473,205 976,595 522,595 177,554 195,409 161,048 1.79,121 (199,123) (510,098) 1,224,621 - 149,041 158,51.6 2,362,264 701,716 $ 9,898,537 $ 12,989,034 $ 18,303,519 $ 17,874,791 $ 5,954,972 $ 8,990,980 $ 7,840,551 $ 11,942,994 2,228,854 5,139,020 8,525,651 7,306,927 $ 8,183,826 $ 14,130,000 $ 16,366,202 $ 19,249,921 TABLE 2 (Continued) Fiscal Year 2009 2010 2011 2012 2013 . 2014 . $ (15,581,514) $ (18,223,896) $ (17,334,053) $ (19,467,073) $ (20,259,531) $ (16,356,550) 2,865,772 1,057,467 3,873,914 1,693,143 2,542,846 4,460,494 $ (12,715,742) $ (17,166,429) $ (13,460,139) $ (17,773,930) $ (17,716,685) $ (11,896,056) $ 8,980,102 $ 9,715,645 $ 10,280,768 $ 11,298,204 $ 12,359,146 $ 12,794,172 6,017,782 6,240,749 7,054,394 7,968,212 9,637,097 10,553,382 1,462,1.99 1,448,620 1,542,046 1,647,712 1,681,079 2,073,1.62 305,073 348,147 391,181 470,290 503,267 552,570 31,790 32,144 33,630 28,586 30,421 39,917 5,105 4,651 2,173 - - - 364,648 117,776 48,235 60,265 54,270 43,279 84,748 611,510 316,840 621,560 505,268 180,316 1,060 607 15,421 84,235 (62,294) 25,140 (50,000) 18,312,054 18,534,663 19,753,502 22,032,535 24,795,688 26,186,798 128,233 36,824 37,950 36,409 53,089 31,810 110,516 236,173 457,094 666,645 664,521 609,003 (1,060,607) (1.5,421) (84,235) 62,294 (25,140) 50,000 (821,858) 257,576 410,809 765,348 692,470 690,81.3 $ 17,490,196 $ 18,792,239 $ 20,164,311 $ 22,797,883 $ 25,488,158 $ 26,877,611 $ 2,730,540 $ 310,767 $ 2,419,449 $ 2,565,462 $ 4,536,157 $ 9,830,248 2,043,914 1,315,043 4,284,723 2,458,491 3,235,316 5,151,307 $ 4,774,454 $ 1,625,810 $ 6,704,172 $ 5,023,953 $ 7,771,473 $ 14,981,555 .. CITY OF SCHERTZ, TEXAS FUND BALANCES - GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS Nonspendable Fund Balance: Inventory Prepaid Items Note Receivable Total Nonspendable Fund Balance Restricted Fund Balance: Police and Public Safety Municipal Court PEG Capital Fees Capital Improvement Debt Service Tourism Development Tree Mitigation Parks Historical Committee & Library Economic Development Corporation Scholarships Total Restricted Fund Balance Committed Fund Balance: Capital Improvement Total Assigned Fund Balance Assigned Fund Balance: Property Replacement Special Events Capital Improvement Recycling Historical Committee Youth Activities Total Assigned Fund Balance Unassigned Fund Balance Total Governmental Funds •E Fiscal Year 2005 2006 2007 2008 $ 10,571 $ 16,706 $ 67,333 $ 46,014 10,571 16,706 67,333 46,014 327,21.2 304,378 352,791 394,122 - 205,344 191,663 269,961 5,135,834 15,134, 814 17,612,092 16,416,440 263,740 347,739 556,884 429,289 187,953 378,823 470,743 502,883 326,267 343,091 271,071 271,071 236,400 286,072 180,223 169,529 25,317 36,261 46,784 68,207 930,697 1,450,801 2,014,135 2,331,951 7,433,420 18,487,323 21,696,386 20,853,453 - - 579,708 400,247 - - 127,500 88,778 10,009 12,733 6,780 1.4,748 10,009 12,733 713,988 503,773 4,864,647 7,202,709 8,876,682 5,269,890 $ 12,318,647 $ 25,719,471 $ 31,354,389 $ 26,673,130 •E TABLE 3 Fiscal Year 1/1/1(1 1/11 /1 1/11 i 1m 1 1m '1m A $ 44,217 $ 46,473 $ 43,504 $ 63,556 $ 50,768 $ 88,518 - - - 2,367 754,443 21,735 - 150,000 120,080 120,080 120,080 - 44,217 1.96,473 1.63,584 186,003 925,291 110,253 355,451 421,265 403,799 338,11.8 496,890 529,264 332,117 402,744 459,244 527,513 646,422 628,459 - - 317,453 409,870 456,175 489,509 14,342,553 3,914,323 10,219,300 17,104,595 15,360,800 9,600,028 444,369 286,215 117,250 227,674 517,199 625,435 180,710 250,379 301,517 390,561 470,250 501,996 191,834 164,424 173,999 217,600 157,659 359,205 120,501 79,317 84,329 90,718 136,647 304,655 163,661 200,359 231,686 65,409 77,554 78,098 2,543,010 3,548,067 3,394,850 4,366,005 6,022,128 7,792,578 - - - - - 54,1.76 18,674,206 9,267,093 15,703,427 23,738,063 24,341,724 20,963,403 - - - - 165,000 31,718 - - - - 165,000 31,718 201,850 202,341 202,723 322,656 456,034 694,916 62,263 142,465 93,447 92,555 99,770 31,177 - - 162,113 243,546 145,167 - 10,149 9,940 9,940 - - - - - - 11,090 - - 274,262 354,746 468,223 669,847 700,971 726,093 1,209,451 1,372,779 1,899,105 2,560,667 4,206,734 5,587,262 $ 20,202,136 $ 11,191,091 $ 18,234,339 $ 27,154,580 $ 30,339,720 $ 27,418,729 91 CITY OF SCHERTZ, TEXAS CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS REVENUES Taxes Permits and Fees Service Fees Fines and Fees Intergovernmental Other Revenue TOTAL REVENUES EXPENDITURES Current: General Government Public Safety Public Environment Parks and Recreation Cultural Health Administration Capital Outlay 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 Bonds & Debt Issuances Premium (Discount) on Bond Issue Payment to Refund Agent Transfers In Transfers (Out) TOTAL OTHER FINANCING SOURCES (USES) NET CHANGE IN FUND BALANCE Debt Service as a percentage of Noncapital Expenditures Fiscal Year 2005 2006 2007 2008 $ 9,682,628 $ 1.2,122,079 $ 15,093,799 $ 15,583,058 1,421,575 1,475,61.9 1,062,054 992,953 424,047 1,322,743 1,230,634 1,018,197 915,704 1,157,480 1,397,101 1,387,677 961,514 26,058 267,420 4,376,072 681,140 767,075 2,510,021 1,864,877 14,086,608 16,871,054 21,561,029 25,222,834 2,758,576 2,934,800 4,994,598 6,184,705 4,542,384 5,020,684 5,665,671 6,638,352 500,880 558,020 655,930 745,307 542,621 604,521 843,870 800,079 328,331 388,679 443,455 667,995 208,499 216,655 263,918 295,156 760,905 903,154 1,115,737 1,517,785 4,360,483 6,127,735 5,504,679 19,189,505 1,236,000 885,838 16,124,517 1,499,270 1,586,092 2,025,043 799,738 1,3 80,444 1,617, 876 165,125 63,969 1.22,290 19,218,381 22,518,363 39,804,093 (2,037,909) (2,347,327) (957,334) (14,581,259) 1.5,319,996 8,306,805 9,900,000 123,057 - - 583,1.26 529,598 354,150 593,294 (934,986) (224,500) (2,068,703) (593,294) (351,860) 15,748,151 6,592,252 9,900,000 $ (2,389,769} $ 13,400,824 $ 5,634,918 $ (4,681,259) 18.0% 92 17.6% 16.1% 14.6% l Fiscal Year 2009 2010 2011 2012 2013 2014 $ 16,786,590 $ 17,811,547 $ 19,309,675 $ 21,401,991 $ 24,181,863 $ 26,021,730 822,105 1,160,197 1, 776, 292 1,363,461 1,609,954 1,805,047 973,781 1,492,130 1,645, 489 1,547,007 1,739,387 1,763,964 1,51.7,821 1,655,183 1,452,610 2,027,613 1,927,744 1,750,311 1,444,966 570,386 1,21.6,211 1,000,413 492,332 221,769 1,066,097 1,161,182 603,498 969,921 767,11.0 671,731 22,611,360 23,850,625 26,003,775 28,310,406 30,718,390 32,234,552 6,765,315 6,989,561 7,164,667 7,094,834 6,311,276 5,981,439 7,235,501 7,409,720 7,885,119 8,690,849 9,113,840 9,409,894 884,158 816,939 846,150 976,327 951,528 1,012,607 869,166 1,1 78,455 1,195,171 1,398,692 1,412,329 1,338,232 821,048 872,668 937,611 845,124 840,595 815,691 348,448 331,860 360,746 346,318 341,961 394,918 941,675 1,251,368 1,506,831 1,249,557 1,289,078 2,270,041 14,963,950 11,347,876 2,956,511 1,299,843 3,277,397 8,000,467 4,816,928 1,893,086 2,371,070 2,704,898 3,217,325 3,695,597 1,987,384 2,183,852 2,066,221 2,313,510 2,381,171 2,108,610 191,066 20,000 244,237 254,971 31,750 165,650 39,824,639 34,295,385 27,534,334 27,174,923 29,168,250 35,193,146 (17,213,279) (10,444,760) (1,530,559) 1,135,483 1,550,140 (2,958,594) 9,681,678 1,418,294 8,206,572 1.4,370,000 1,635,000 8,583,71.5 - - 283,000 175,473 - 686,137 - - - (6,698,421) - (9,182,250) 2,778,593 242,539 348,846 139,635 788,084 1,243,833 (1,71.7,986) (227,118) (264,611) (201,929) (788,084) (1,293,832) 10,742,285 1,433,715 8,573,807 7,784,758 1,635,000 37,603 $ (6,470,994) $ (9,011,045) $ 7,043,248 $ 8,920,241 $ 3,185,140 $ (2,920,991) 26.1% 17.7% 17.4% 19.5% 21.6% 21.3% 93 CITY OF SCHERTZ, TEXAS TAX REVENUE BY SOURCE — GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS Fiscal Year Property Sales & Use Franchise 2014 $ 12,802,668 $ 10,553,382 $ 2,073,162 2013 12,329,999 9,637,097 1,681,079 2012 11,287,191 7,968,212 1,647,712 2011 10,286,251 7,054,394 1,542,046 2010 9,737,236 6,240,749 1,448,620 2009 8,964,642 6,017,781 1,462,199 2008 7,855,984 6,175,759 1,240,642 2007 7,767,600 6,026,675 1,004,116 2006 6,261,532 4,671,785 961,462 2005 5,501,490 3,340,475 786,298 •, Mixed Hotel Total Beverage Bingo Occupancy Revenue $ 39,917 $ 31 $ 552,570 $ 26,021,730 30,421 - 503,267 24,181,863 28,586 - 470,290 21,401,991 33,630 2,173 391,181 19,309,675 32,144 4,651 348,147 17,811,547 31,790 5,105 305,073 16,786,590 32,364 4,751 273,558 15,583,058 29,451 6,781 259,176 15,093,799 20,068 5,124 202,108 12,122,079 6,437 4,946 42,982 9,682,628 CITY OF SCHERTZ, TEXAS TOTAL WATER AND SEWER CONSUMPTION AND RATES LAST TEN FISCAL YEARS Fiscal Year Ended September 30, 2014 2013 . 2012 2011 2010 2009 2008 2007 2006 2005 Total Water & Sewer Consumption (In Gallons) 1,549,888,700 1,550,039,700 1,604,952,300 1,676,323,900 1,231,376,600 1,511,567,900 855,779,200 614,508,100 714,230,400 528,766,500 a Water & Sewer Base Rate 19.32 18.94 18.94 18.94 18.94 18.94 15.94 15.94 15.94 15.94 Water & Sewer Initial Rate Per 1,000 Gallons $ 2.39 2.34 2.34 2.34 2.25 2.16 1.92 1.72 1.69 1.52 CITY OF SCHERTZ, TEXAS PRINCIPAL WATER AND SEWER CONSUMERS CURRENT YEAR AND NINE YEARS AGO w 2014 2005 Total Percentage of Total Percentage of Water Total City Water Total City Consumption Water Consumption Water Consumers (in Gallons) Rank Consumption (in Gallons) Rank Consumption SYSCO 23,384,500 1 1.51% Caterpillar Inc. 20,741,100 2 1.34% Sycamore Creek Apartments 10,869,700 3 0.70% Waterford Ridge Apartments 9,537,700 4 0.61% Beck Readymix 9,366,900 5 0.60% 4,930,800 1 0.88% Ray D. Corbett Jr High School 8,695,600 6 0.56% Big Time Management Properties 8,200,700 7 0.53% Pecan Grove TX LLC 7,725,100 8 0.50% 2,176,000 3 0.39% Val Verde 6,301,600 9 0.41% 1,787,900 6 0.32% YMCA /Splash Pad 5,281,200 10 0.34% Wal -mart Supercenter 3,052,600 2 0.54% Sprint PCS 2,073,200 4 0.37% Manco Structures LTD 1,812,600 5 0.32% H2 Auto Inc. 1,623,700 7 0.29% Diamond Shamrock 1,542,400 8 0.27% The Oak at Green Valley 1,365,300 9 0.24% Republic Beverage Company 1,340,800 10 0.24% TOTAL 110,104,100 7.09% 21,705,300 3.85% Total City Water Consumption 1,552,387,300 563,511,000 w CITY OF SCHERTZ, TEXAS ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS Fiscal Year Ended September 30, 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 Total Taxable Assessed Value Total Direct Tax Rate 2,752,562,574 0.4974 2,600,365,551 0.4999 2,41 1,270,623 0.4843 2,363,893,708 0.4493 2,342,355,490 0.4342 2,230,825,045 0.4090 2,221,073,744 0.4090 1,893,240,916 0.4317 1,621,059,759 0.3977 1,444,991,860 0.3760 Source: Bexar, Comal and Guadalupe County Appraisal Districts 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. Total taxable assessed value is before any applicable fi°eeze adjustments. .m Source NOTE: CITY OF SCHERTZ, TEXAS DIRECT AND OVERLAPPING PROPERTY TAX RATES LAST TEN FISCAL YEARS (UNAUDITED) Overlapping Counties Bexar Comal Guadalupe Fiscal Hospital River Year County District Authority Community College District County County 2013 . City Direct Rates 0.2762 Overlapping School Districts 0.3504 0.3999 2013 0.3269 Schertz - 0.01.74 0.1.492 0.3504 0.4036 2012 Cibolo- 0.2762 Fiscal Basic Debt 0.4036 Universal Coma] Year Rate Service Total City ISD ISD 0.3269 2014 0.3010 0.1964 0.4974 1.4900 1.4300 2013 0.2993 0.2006 0.4999 1.4600 1.4300 2012 0.2993 0.1850 0.4843 1.4350 1.4300 2011 0.2993 0.1.500 0.4493 1.4350 1.3700 2010 . 0.2842 0.1500 0.4342 1.4200 1.31.00 2009 0.2590 0.1.500 0.4090 1.3850 1.3100 2008 0.2590 0.1500 0.4090 1.31.50 1.31.00 2007 0.2805 0.1.512 0.4317 1.6100 1.6400 2006 0.3005 0.0972 0.3977 1.7200 1.8000 2005 0.2888 0.0872 0.3760 1.7400 1.8200 Overlapping Counties Bexar Comal Guadalupe Fiscal Hospital River Year County District Authority Community College District County County 2013 . 0.3269 0.2762 0.01.78 0.1492 0.3504 0.3999 2013 0.3269 0.2762 0.01.74 0.1.492 0.3504 0.4036 2012 0.3269 0.2762 0.01.74 0.1416 0.3504 0.4036 2011 0.3269 0.2762 0.0167 0.1416 0.3340 0.3999 2010 0.3269 0.2662 0.0160 0.1359 0.3130 0.3895 2009 0.3269 0.2610 0.0160 0.1359 0.3080 0.3895 2008 0.3269 0.2374 0.0160 0.1346 0.3180 0.3895 2007 0.3269 0.2439 0.0160 0.1371 0.3152 0.4031 2006 0.3312 0.2439 0.0164 0.1.071 0.3537 0.4031. 2005 0.3312 0.2439 0.0164 0.1071 0.3337 0.4031 Bexar, Comal and Guadalupe County Tax Offices 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. •• CITY OF SCHERTZ, TEXAS PRINCIPAL PROPERTY TAX PAYERS CURRENT YEAR AND NINE YEARS AGO Source: Bexar, Comal and Guadalupe County Appraisal Districts •• 2014 2005 Percentage Percentage of of Total City Total City Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Taxpayer Value Rank Value Value Rank Value Caterpillar Inc. $ 105,162,397 1 3.82% SYSCO San Antonio, Inc. 95,931,063 2 3.49% Republic Beverage Co. Distribution 46,370,700 3 1.68% Capital Group Companies, Inc 37,581,105 4 1.37% San Antonio MTA LP 22,907,035 5 0.83% $ 28,007,240 1 1.94% SC Schertz LLC 16,240,300 6 0.59% GE Oil & Gas Inc. 16,011,420 7 0.58% Wal -Mart Real Estate Business Trust 13,239,871 8 0.48% H.E.Butt Grocery Co. 11,650,124 9 0.42% 9,793,856 6 0.68% EM Limited Partnership 9,922,009 10 0.36% Block Distributing, Inc. 19,686,530 2 1.36% Sprint Spectrum, LP 13,846,660 3 0.96% Verde Tri County, LTD 12,570,214 4 0.87% Eye Care Centers of America, Inc. 11,081,946 5 0.77% Prologis North American Properties 8,157,730 7 0.56% Atlantic Financial Group LTD 8,072,983 8 0.56% Wal -Mart Real Estate Business Trust 7,897,206 9 0.55% Legacy Oaks Apartments, Ltd. 7,693,601 10 0.53% TOTALS $ 375,016,024 13.62% $ 126,807,966 8.78% TOTAL TAXABLE ASSESSED VALUE $ 2,752,562,574 $ 1,444,991,860 Source: Bexar, Comal and Guadalupe County Appraisal Districts •• CITY OF SCHERTZ, TEXAS PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS (UNAUDITED) Source: Guadalupe County Tax Office 100 Total Collections Collected Within Fiscal Year Taxes Levied Fiscal Year of Levy Ended for the Levy % of September 30, Fiscal Year Amount Levy 99.35% 2014 $ 13,383,759 $ 13,297,258 99.35% 2013 12,536,540 12,455,336 99.35% 2012 11,239,572 11,159,974 99.29% 2011 9,978,430 9,895,240 99.17% 2010 9,639,945 9,559,899 99.17% 2009 8,800,927 8,703,978 98.90% 2008 7,793,405 7,711 ,714 98.95% 2007 7,048,818 6,957,827 98.71% 2006 5,645,611 5,576,559 98.78% 2005 4,858,508 4,796,062 98.71% Source: Guadalupe County Tax Office 100 Total Collections Collections In To Date Subsequent % of Years Amount Levy $ - $ 13,297,258 99.35% 19,539 12,455,336 99.35% 67,632 11,159,974 99.29% 70,941 9,895,240 99.17% 68,763 9,628,662 99.88% 85,940 8,789,918 99.87% 74,257 7,785,971 99.90% 80,601 7,038,428 99.85% 63,505 5,640,064 99.90% 58,564 4,854,626 99.92% CITY OF SCHERTZ, TEXAS TAXABLE ASSESSED VALUE LAST TEN FISCAL YEARS (UNAUDITED) Fiscal Year Taxable Total Taxable Total Ended Value Residential Commercial Tax - Exempt Other Assessed Direct September 30, January 1, Property Property Property Property Value* Tax Rate 2014 2013 $ 1,445,731,509 $ 1,540,565,195 $ (340,747,650) $ 107,013,520 $ 2,752,562,574 0.4974 2013 2012 1,383,423,359 1,396,349,905 (285,245,142) 105,837,429 2,600,365,551 0.4999 2012 2011 1,337,223,390 1,233,687,039 (262,591,896) 102,952,090 2,411,270,623 0.4843 2011 2010 1,272,970,256 1,253,600,729 (280,015,063) 117,337,786 2,363,893,708 0.4493 2010 2009 1,234,950,439 1,237,284,878 (251,217,268) 121,337,441 2,342,355,490 0.4342 2009 2008 1,169,845,869 1,191,387,341 (248,544,582) 118,136,417 2,230,825,045 0.4090 2008 2007 1,096,587,777 1,276,925,393 (345,068,394) 192,628,968 2,221,073,744 0.4090 2007 2006 990,263,111 1,033,634,277 (271,404,640) 140,748,168 1,893,240,916 0.4317 2006 2005 901,544,236 810,987,398 (182,861,671) 91,389,796 1,621,059,759 0.3977 2005 2004 820,916,373 713,003,107 (173,247,011) 84,319,391 1,444,991,860 0.3760 *Taxable Assessed Value is before any applicable freeze adjustments. Source: Bexar, Comal, and Guadalupe County Appraisal Districts. 101 CITY OF SCHERTZ, TEXAS RATIOS OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS Governmental Activities NOTES: a Details regarding the City's outstanding debt can be found in the notes to the basic 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. 102 General Certificates Fiscal Obligation of Tax Capital Year Bonds Obligation Notes Lease 2014 $ 55,300,000 $ 543,934 $ 1,585,000 $ 123,370 2013 58,060,000 801,767 2,155,000 22,398 2012 60,205,000 1,581,300 190,000 60,190 2011 47,505,000 8,625,800 250,000 97,188 2010 37,530,000 12,415,650 310,000 133,408 2009 38,485,000 13,338,850 - - 2008 32,790,000 14,243,700 - 107,078 2007 23,950,000 15,232,893 - 215,854 2006 18,740,000 13,560,000 - 319,996 2005 4,045,000 14,250,000 160,000 - NOTES: a Details regarding the City's outstanding debt can be found in the notes to the basic 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. 102 TABLE 13 103 Business -Type Activities Certificates Public General Total Percent Revenue of Facility Obligation Capital Tax Primary of Gross Bonds Obligation Loan Bonds Lease Notes Government Income $ - $ 9,436,066 $ - $ 3,960,000 $ 347,705 $ 65,000 $ 71,361,075 6.24% 2,215,000 5,048,233 - 2,120,000 - 130,000 70,552,398 6.44% 2,355,000 5,383,700 - 2,405,000 - 190,000 72,370,190 8.08% 2,490,000 5,704,200 - 2,675,000 - 250,000 67,597,188 7.95% 5,460,000 6,149,350 - - - 310,000 62,308,408 7.28% 5,805,000 6,571,150 7,000 - - - 64,207,000 7.03% 6,230,000 6,976,300 14,000 - - - 60,361,078 7.19% 6,645,000 7,237,107 21,000 - - - 53,301,854 6.02% 7,055,000 - 28,000 - - - 39,702,996 4.82% 7,445,000 - 34,000 - - - 25,934,000 3.70% 103 CITY OF SCHERTZ, TEXAS RATIOS OF GENERAL BONDED DEBT OUTSTANDING LAST TEN FISCAL YEARS Percentage of General Bonded Debt Outstanding Value of General Certificates Capita 2.09% Fiscal Obligation of Tax 1,796 Year Bonds Obligation Notes Total 2014 $ 55,300,000 $ 543,934 $1,585,000 $ 57,428,934 2013 58,060,000 801,767 2,155,000 61,016,767 2012 60,205,000 1,581,300 190,000 61,976,300 2011 47,505,000 8,625,800 250,000 56,380,800 2010 37,530,000 12,415,650 310,000 50,255,650 2009 38,485,000 13,338,850 - 51,823,850 2008 32,790,000 14,243,700 - 47,033,700 2007 23,950,000 15,232,893 - 39,182,893 2006 18,740,000 13,560,000 - 32,300,000 2005 4,045,000 14,250,000 160,000 18,455,000 Percentage of Actual Taxable Value of Per Property Capita 2.09% 1,574 2.35% 1,698 2.57% 1,796 2.39% 1,681. 2.1.5% 1,545 2.32% 1,647 2.1.2% 1,467 2.07% 1,233 1.99% 1,027 1.28% 689 NOTE: Details regarding the City's outstanding debt can be found in the notes to the basic financial statements. See Table 8 for the City's property tax value data. City population data can be found in Table 18. 104 CITY OF SCHERTZ, TEXAS DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT CURRENT YEAR TABLE 15 Estimated Estimated Share of Debt Percentage Overlapping Governmental Unit Outstanding Applicable* Debt Debt repaid with property taxes: Alamo CCD $ 506,301,257 0.15% $ 759,452 Bexar County 1,023,238,620 0.15% 1,534,858 Bexar County Hospital District 721,615,000 0.15% 1,082,423 Comal County 59,095,100 3.23% 1,908,772 ComalISD 492,921,213 2.84% 13,998,962 Guadalupe County 19,181,414 18.63% 3,573,497 San Antonio River Authority 27,630,000 0.14% 38,682 Schertz- Cibolo- Universal ISD 287,979,356 52.85% 152,197,089 Subtotal, Overlapping Debt City Governmental Activities Direct Debt TOTAL NET OVERLAPPING DEBT 175,093,735 57,428,934 $ 232,522,669 NOTES: The overlapping debt was received from the Municipal Advisory Council of Texas. Details regarding the City's outstanding debt can be found in the notes to the basic financial statements. 105 CITY OF SCHERTZ, TEXAS DEBT MARGIN INFORMATION LAST TEN FISCAL YEARS Assessed Value, 2013 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: General Bonded Debt Less Debt Service Fund Balance Total Net Debt as a Percentage of Debt Margin $ 2,752,562,574 $ 275,256,257 $ 57,428,934 (625,435) 56,803,499 $ 218,452,758 26.00% 106 Fiscal Year 2011 2012 2013 Assessed Value $ 2,363,893,708 $ 2,411,270,623 $ 2,600,365,551 Debt Limit $ 236,389,371 $ 241,127,062 $ 260,036,555 Total Net Debt Applicable to Limit 55,298,550 60,973,626 60,499,568 Total Debt Margin $ 181,090,821 $ 1.80,153,436 $ 199,536,987 2008 2009 2010 Assessed Value $ 2,221,073,744 $ 2,230,825,045 $ 2,342,355,490 Debt Limit $ 222,107,374 $ 223,082,505 $ 234,235,549 Total Net Debt Applicable to Limit 45,466,903 50,414,481 48,819,435 Total Debt Margin $ 176,640,471 $ 172,668,024 $ 185,416,114 2005 2006 2007 Assessed Value $ 1,444,991,860 $ 1,621,059,759 $ 1,893,240,916 Debt Limit $ 144,499,186 $ 162,105,976 $ 189,324,092 Total Net Debt Applicable to Limit 3,781,530 18,392,261 23,488,500 Total Debt Margin $ 140,717,656 $ 143,713,715 $ 165,835,592 106 CITY OF SCHERTZ, TEXAS PLEDGED REVENUE COVERAGE LAST TEN FISCAL YEARS NOTE: Details regarding the City's outstanding debt can be found in the notes to the basic financial statements. Operating expenses do not include depreciation, interest, amortization or joint venture expenses. 107 Water Revenue Bonds Utility Less: Net Debt Service Fiscal Service Operating Available Year Charges Expenses Revenue Principal Interest Coverage 2014 $ 19,147,872 $ 15,246,653 $ 3,901,219 $ 1,010,500 $ 426,100 2.72 2013 17,696,327 14,553,274 3,143,053 728,800 359,680 2.89 2012 17,411,568 14,185,126 3,226,442 697,100 396,968 2.95 2011 16,843,780 13,229,037 3,614,743 577,824 409,801 3.66 2010 14,993,648 12,399,880 2,593,768 615,400 502,629 3.74 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 4.86 2007 13,476,288 7,896,319 5,579,969 645,800 501,397 5.82 2006 11,289,876 6,955,000 4,334,876 390,000 354,965 5.47 2005 9,381,042 6,136,390 3,244,652 380,000 213,290 3.26 NOTE: Details regarding the City's outstanding debt can be found in the notes to the basic financial statements. Operating expenses do not include depreciation, interest, amortization or joint venture expenses. 107 CITY OF SCHERTZ, TEXAS DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN FISCAL YEARS 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. 108 Education Per Capita Level In Personal Personal Median Years of School Unemployment Year Population Income Income Age Schooling Enrollment Rate 2014 36,477 $ 1,144,465,875 $ 31,375 36.9 15.4 14,515 3.2% 2013 35,929 1,095,331,494 30,486 37.1 15.4 1.4,058 5.1% 2012 34,499 895,739,206 25,964 36.8 15.4 1.3,016 5.5% 2011 33,544 850,069,800 25,342 37.8 15.4 12,533 5.6% 2010 32,523 856,236,720 26,327 34.4 15.4 12,330 5.7% 2009 31,465 913,919,790 29,046 36.5 13.9 11,700 5.1% 2008 32,057 839,701,058 26,194 35.1 14.0 10,991 5.0% 2007 31,788 885,836,196 27,867 36.3 14.0 9,470 4.0% 2006 31,452 823,539,168 26,184 36.1 18.0 8,380 4.4% 2005 26,780 701,207,520 26,184 35.1 15.9 7,712 3.6% 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. 108 CITY OF SCHERTZ, TEXAS TOP TEN PRINCIPAL EMPLOYERS CURRENT YEAR AND EIGHT YEARS AGO Employer Employees Schertz /Cibolo/IJC ISD 1,753 Sysco Central Texas 810 Amazon.com 674 Brandt Engineering 450 Vision Works 410 H.E.B. Grocery Co. 350 City of Schertz 345 Wal -Mart Stores 320 CST Distribution 305 Republic Beverage Company 250 Valero Diamond Distribution 5.04% Federal Express Freight Metro Ambulance LP 3 Manco Lowe's 4 5,667 2014 2007 Source: City Economic Development Corporation Note: Principal employer information is not available prior to 2007. 109 Percentage Percentage of Total City of Total City Rank Employment Employees Rank Employment 1 10.92% 1,300 1 9.47% 2 5.04% 3 4.20% 4 2.80% 5 2.55% 6 2.18% 220 4 1.60% 7 2.15% 232 3 1.69% 8 1.99% 420 2 3.06% 9 1.90% 10 1.56% 1.00 9 0.73% 167 5 1.22% 165 6 1.20% 110 7 0.80% 100 8 0.73% 83 10 0.60% 35.29% 2,897 21.11% Source: City Economic Development Corporation Note: Principal employer information is not available prior to 2007. 109 rr CITY OF SCHERTZ, TEXAS FULL -TIME EQUIVALENT CITY GOVERNMENTAL EMPLOYEES BY FUNCTION LAST TEN FISCAL YEARS 110 Full -Time Equivalent Employees as of September 30, Function 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 General Government City Manager 4 3 4 6 7 6 6 7 7 6 Court Support 4 4 4 0 0 0 0 0 0 0 Municipal Court 2 3.5 5 6 4 5 5 5 6 6 Customer Relations 0 0 2 4 4 4 4.5 4.5 4.5 4.5 Planning and Zoning 2 3 4 5 4 4 4 3 3 3 General Services 6 6.5 9 9 9.5 13.5 14.7 1.4.7 1.2.7 1.2.7 City Secretary 2 2 2 2 2 2 2 2 2 2 Public Affairs 1 1 2 3 3 3 3 4 4 4 Records Management 1.5 2 2 3 3 1 1 1 1 1 Schertz Magazine 0 0 0 0 0 0 2 2 2 2 Engineer 0 0 1 3 1 2 2 4 3 3 GIS 0 0 0 0 2 2 2 2 2 2 Information Technology 2 3 3 3 3 3 4 4 6 6 Human Resources 2 2 2 3 3 4 4 4 4 4 Accounting 5 5 5 6 6 6 6 6 6 6 Purchasing 0 0 1 2 2 5 5 5 5 5 Fleet Service 3 3 3 3 3 3 4 4 4 4 Building Maintenance 0 0 0 0 0 0 0 0 2 2 Public Safety Police 50.5 58.7 63.6 68.6 64.6 64.6 64.6 69.7 74.7 74.7 Fire 31 32 32 32 32 32 32 32 32 33 Inspections 6 6 8 8 7 6 7 7 7 8 Marshal Services 0 0 0 0 5 5 8 8 8 8 Health Animal Control 5 5 5 6 6 6 6 6 6 6.5 Parks and Culture Parks 7 7 8 8 8 8 9 9 9 9 Pools 15 12.5 12.5 0 0 0 0 0 0 0 Event Facilities 0 0 1 1 1 1 2 1 1 1 Library 8.5 9.5 9.5 10.5 11 13.5 13.5 14 14 14 Public Environment Streets 13 11 11 13 13 13 14 14 14 14 Public Works Public Works 6 6 6 6 6 5 4 4 6 6 Business Office 9 10 9 10 10 10 10 10 10 10 Water and Sewer 11 12 14 14 16 16 17 17 16 16 Drainage 4 5 5 6 7 7 7 7 8 8 EMS 22 22 23.5 30 34 34 34 35 35 36 Economic Development 2 3 3 3 4 4 3 4 4 4 TOTAL 224.5 237.7 260.1 274.1 281.1 288.6 300.3 309.9 318.9 321.4 Source: City Adopted Budgets Note: Full -time equivalent is based on the schedule hours of positions to a 40 hour work week. 110 CITY OF SCHERTZ, TEXAS OPERATING INDICATORS BY FUNCTIONTROGRAM LAST TEN FISCAL YEARS III Fiscal Year Function 2005 2006 2007 2008 2009 General Government Building Permits Issued 3,434 9,948 5,811 2,869 5,181 Schertz Tales Number of Magazines printed - - 72,000 108,000 120,000 Police CFS 12,770 16,642 25,478 37,829 36,319 Arrests 729 526 608 719 873 Traffic Violations 11,157 10,487 13,461 18,820 20,452 Accidents 1,169 1,192 1,484 1,475 1,491 Fire Number of Rescue /Other Responses 1,131 1,216 1,459 978 1,536 Number of Fire Responses 128 129 103 141 135 Number of Inspections 331 356 302 461 447 Number of Training Classes Conducted 136 136 694 595 264 Number of Pre -Plan Inspections 452 EMS Requests for Transport 4,966 5,171 6,256 6,619 7,061 Actual Transports 2,767 2,937 3,634 4,193 4,341 EMT Students - - 45 73 80 Marshal Service Warrants Issued - - 5,974 Warrants Cleared 3,836 Food Establishment Permits 134 Food Establishment Inspection 209 Foster /Adoption Inspections - - - - 34 Parks Facility Reservations 294 416 516 983 671 Community and Civic Centers Civic Center - - - - 484 Community Center Rentals - North Community Center Rentals - Animal Services Number of Animals Handled 1,804 Number of Adoptions 255 Number of Return to Owners 252 Number of Transfers - - - - 415 Library Annual Circulation 257,765 276,873 292,909 278,826 263,131 Library Visits 175,976 181,603 179,630 175,435 188,118 Library Program Attendance 5,254 5,064 6,680 7,444 10,499 Registered Users 17,101 19,342 19,595 23,327 20,360 Water New Connections 425 532 91 1,474 446 Water Main Breaks 39 46 29 72 72 Total Consumption (thousands of gallons) 11,030,621 13,322,380 11,535,927 14,460,239 15,115,679 Daily Average Consumption (thousands of gallons) 30,639 37,007 31,606 39,617 38,550 Peak Daily Consumption (thousands of gallons) 6,939 10,540 5,379 5,804 7,520 Total Customers 9,673 10,118 10,598 10,900 10,198 Average Use Per Connection 5,957 7,060 1,089 6,378 6,913 Sewer Total Customers 8,664 8,990 9,391 6,378 9,974 Facilities Maintenance Number of Buildings Maintained 9 12 14 16 19 Square Footage 89,452 111,642 127,589 135,091 166,591 Source: Various City Departments. Prior year information for some functions is not available. III 112 Fiscal Year 2010 2011 2012 2013 2014 4,806 4,950 2,643 3,054 2,869 144,000 168,000 168,000 168,000 180,000 37,269 26,205 19,434 19,894 19,067 790 762 666 800 776 19,259 13,231 20,881 19,335 15,077 1,606 1,575 1,665 1,960 1,823 1,671 1,657 1,799 2,046 1,759 76 110 74 108 110 425 616 429 332 252 107 142 168 132 125 642 536 714 729 735 7,281 7,443 7,545 8,391 8,840 4,575 4,801 4,766 5,451 5,713 80 85 79 116 87 5,444 4,141 2,888 3,344 2,354 4,023 3,985 4,118 4,687 3,781 129 118 123 127 82 202 244 180 281 218 27 18 14 24 16 719 237 234 258 301 594 354 325 444 458 635 666 816 735 437 - 241 307 288 244 2,021 1,802 1,463 1,326 1,218 249 257 291 362 309 279 313 149 231 222 451 300 312 301 316 392,528 414,074 410,312 404,691 395,998 257,235 254,934 256,349 254,633 253,237 10,610 13,767 16,035 12,581 15,048 24,628 28,589 30,475 31,658 30,759 509 439 271 168 235 25 76 52 38 45 12,313,766 16,763,239 16,131,415 15,500,413 15,497,071 33,736 45,927 44,196 42,466 42,458 7,040 11,000 9,290 9,483 10,089 10,134 12,234 12,557 12,757 13,324 5,054 5,725 5,517 5,905 5,467 9,499 10,907 10,988 11,456 11,578 19 19 19 19 19 166,591 166,591 166,591 166,591 166,591 112 CITY OF SCHERTZ, TEXAS CAPITAL ASSET STATISTICS BY FUNCTIONTROGRAM LAST TEN FISCAL YEARS 113 Fiscal Year Function 2005 2006 2007 2008 2009 Police Stations 1 1 1 1 1 Patrol Units 27 34 33 33 38 Fire Stations 2 2 2 2 2 Training Facility 1 1 1 1 - Fire Vehicles 11 12 12 14 13 EMS Ambulances 6 6 6 6 6 Marshal Service Vehicles - - - - 5 Streets Streects, paved (miles) 102 102 107 122 124 Streets, unpaved (miles) 9 9 9 7 7 Parks and Recreation Parks - Developed 7 7 7 7 11 Parks - Undeveloped 4 4 4 4 4 Playground 20 20 20 20 20 Swimming Pools 1 1 1 2 2 Baby Pools 1 1 1 2 2 Baseball /Softball Diamonds 12 12 12 12 12 Soccer Fields - - - - 12 Community Centers 1 1 1 2 2 Animal Control Control Vehicle 2 2 3 3 3 Library Facility 1 1 1 1 1 Volumes in Collection 49,289 52,818 56,282 60,650 64,400 Water Number of Reservoirs 1 1 - - - Number of Pump Stations 1 1 2 - 5 Water Mains (Miles) 166 171 177 182 188 Sewer Sanitary Sewers (Miles) 54 54 59 71 78 Storm Sewers (Miles) 4 4 6 8 9 Facilities Maintenance Vehicles 4 4 4 4 5 Generators 3 3 3 3 3 Source: Various City Departments 113 Fiscal Year TABLE 22 2010 2011 2012 2013 2014 1 1 1 1 1 40 42 42 42 42 2 2 2 2 2 13 13 13 13 15 6 6 6 7 7 7 8 8 7 7 125 132 134 137 141 7 5 5 5 5 12 17 17 13 13 4 4 4 8 8 19 15 15 16 16 2 2 2 2 2 2 2 2 2 2 12 9 9 12 12 12 12 12 12 12 4 4 4 4 4 3 3 3 3 3 1 1 1 1 1 71,929 73,904 81,468 86,221 100,478 5 5 5 5 5 190 192 192 197 199 78 84 85 87 90 9 10 10 11 11 5 5 4 5 5 3 3 3 3 3 114 rr COMPLIANCE SECTION 115 SHAREHOLDERS Nancy L Vaughan, CPA Armstrong, ughan Ass,ci to r PC Deborah E Fraser, CPA Certified Public Accountants Phil S. Vaughan, CPA 110111101 W 0191 " 01611 :11111YC�7ii. '� COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GO VERNMENT A UDITING STANDARDS To the City Council and management City of Schertz We have audited, 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, the financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund infonnation of City of Schertz as of and for the year ended September 30, 2014, and the related notes to the financial statements, which collectively comprise City of Schertz's basic financial statements, and have issued our report thereon dated March 03, 2015. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered City of Schertz's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of City of Schertz's internal control. Accordingly, we do not express an opinion on the effectiveness of City of Schertz's internal control. 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. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of 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 material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. 941 West Byrd Blvd., Smite 101, - Universal City, Texas 78148 Phone: 210-658-6229 - Fax: 210 -65 - 611 - email: vaughan @avac a,com # wwwavacpa:xor 116 Compliance and Other Matters As part of obtaining reasonable assurance about whether City of Schertz's financial statements are free from 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 effect on the determination of 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. We noted certain matters that we have reported to management of City of Schertz in a separate letter dated March 03, 2015. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Armstrong, Vaughan & Associates, P.C. March 03, 2015 117 rr lei II& W41110041IELVA101010]7_10111101 City Council Meeting: March 24, 2015 Department: EMS Agenda No. 4 Subject: Resolution No. 15-R-22 - EMS Accounts Receivables Adjustments BACKGROUND: Per City Policy, EMS is to bring our accounts receivables adjustments before City Council for proper accounting procedures to be accomplished by the Finance Department. FISCAL IMPACT The first adjustments we are requesting Council to make are on private pay accounts that have been referred to our collection agency (MVBA). These represent accounts that were sent to MVBA from September 1, 2014 through February 28, 2015. For this period we are requesting to remove $948,945.41 from our accounts receivables account. These funds, from 932 separate accounts will continue to be pursued and if recovered will be accounted for as miscellaneous revenue. The second adjustment comes from our internal billing procedures. Some of these are negotiated charge reductions, write -offs of co -pays for citizens in the cities we serve, bills of homeless patients who we cannot locate any longer, and bills of deceased patients who do not have insurance or estates from which to recover EMS charges for service. The amount of this category is $31,198.34. This period's total adjustments are $980,143.75. This is the first Account Receivable Adjustment of Fiscal Year 2015 out of a budgeted amount of $3,134,060. RECOMMENDATION Staff recommends Council approve Resolution No. 15 -R -22 ATTACHMENTS Resolution No. 15 -R -22 RESOLUTION NO. 15 -R -22 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING EMS DEBT REVENUE ADJUSTMENTS FOR INACTIVE OUTSTANDING ACCOUNTS RECEIVABLES AFTER 180 DAYS OF NON PAYMENT AND OTHER MATTERS IN CONNECTION THEREWITH WHEREAS, the City staff of the City of Schertz (the "City ") has recommended that the City maintains quarterly debt revenue adjustments for inactive outstanding accounts; and WHEREAS, the City Council has determined that it is in the best interest of the City that all inactive outstanding accounts after 180 days nonpayment will be sent to City Council for consideration of EMS Billing Debt Revenue Adjustments attached hereto as Exhibit A. (the "Account Receivable Adjustment Register "). BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS THAT: Section 1. The City Council hereby authorizes the EMS Billing Debt Revenue Adjustment on the write off audit register, in substantially the form set forth on Exhibit A Section 2. The recitals contained in the preamble hereof are hereby found to be true, and such recitals are hereby made a part of this Resolution for all purposes and are adopted as a part of the judgment and finding of the City Council. Section 3. All resolutions or parts thereof, which are in conflict or inconsistent with any provision of this Resolution are hereby repealed to the extent of such conflict, and the provisions of this Resolution shall be and remain controlling as to the matters resolved herein. Section 4. This Resolution shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. Section 5. If any provision of this Resolution or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this Resolution and the application of such provision to other persons and circumstances shall nevertheless be valid, and the City Council hereby declares that this Resolution would have been enacted without such invalid provision. Section 6. It is officially found, determined, and declared that the meeting at which this Resolution is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Resolution, was given, all as required by Chapter 551, Texas Section 7. This Resolution shall be in force and effect from and after its final passage, and it is so resolved. PASSED AND ADOPTED, this 24rd day of March, 2015. CITY OF SCHERTZ, TEXAS Mayor, Michael R. Carpenter City Secretary, Brenda :Dennis (CITY SEAL) Exhibit A EMS Account Receivable Adjustment Register September 1, 2014 — February 28, 2015 . PRIVATE PAY EMS COLLECTION ACCOUNTS: Collection accounts with Collection Agency (09/01/14 — 02/28115): $948,945.41 1plan-.11Na1►n o001 4111111 a n &VAp1►1i1Wn111Imya101►`11a Revenue adjustments by EMS Billing (09/01/14 — 02/28/15): $ 31,198.34 CITY COUNCIL MEMORANDUM City Council Meeting: March 24, 2015 Department: Subject: BACKGROUND Goal Agenda No. 5 Business Office /Utility Billing Resolution No. 15 -R -23 - Utility Billing Debt Revenue Adjustments Our goal is to ensure that our outstanding receivables are current. Community Benefit By exhausting all efforts to collect outstanding debts, this will insure the lowest possible rate to the community. Summary of Recommended Action It is the recommendation of the City Auditor, Debbie Fraser, to keep our receivables current. FISCAL IMPACT To ensure that our outstanding receivables are current, we are requesting to write -off $13,825.88 uncollectible Water, Sewer, Garbage, and Drainage Accounts. The amounts included in this request are for the period of March 1, 2014 through July 31, 2014. All collections efforts have been exhausted. Staff recommends City Council approve Resolution No. 15 -R -23 for the Write -Off amount of $13,825.88. ATTACHMENT Resolution No. 15 -R -23 Utility Billing Debt Revenue Adjustments RESOLUTION NO. 15 -R -23 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING UTILITY BILLING DEBT REVENUE ADJUSTMENTS FOR INACTIVE OUTSTANDING ACCOUNTS RECEIVABLES AFTER 180 DAYS OF NON PAYMENT AND OTHER MATTERS IN CONNECTION THEREWITH WHEREAS, the City staff of the City of Schertz (the "City ") has recommended that the City maintains quarterly debt revenue adjustments for inactive outstanding accounts; and WHEREAS, the City Council has determined that it is in the best interest of the City that all inactive outstanding accounts after 180 days non payment will be sent to City Council for consideration of Utility Billing Debt Revenue Adjustments attached hereto as `Exhibit A ". (the " Write Off Audit Register "). BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS THAT: Section 1. The City Council hereby authorizes Utility Billing Debt Revenue Adjustment on the write off audit register, in substantially the form set forth on "Exhibit A ". Section 2. The recitals contained in the preamble hereof are hereby found to be true, and such recitals are hereby made a part of this Resolution for all purposes and are adopted as a part of the judgment and finding of the City Council. Section 3. All resolutions or parts thereof, which are in conflict or inconsistent with any provision of this Resolution are hereby repealed to the extent of such conflict, and the provisions of this Resolution shall be and remain controlling as to the matters resolved herein. Section 4. This Resolution shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. Section 5. If any provision of this Resolution or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this Resolution and the application of such provision to other persons and circumstances shall nevertheless be valid, and the City Council hereby declares that this Resolution would have been enacted without such invalid provision. Section 6. It is officially found, determined, and declared that the meeting at which this Resolution is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Resolution, was given, all as required by Chapter 551, Texas Section 7. This Resolution shall be in force and effect from and after its final passage, and it is so resolved. PASSED AND ADOPTED, this 24th day of March, 2015. CITY OF SCHERTZ, TEXAS Mayor, Michael Carpenter ATTEST: City Secretary, Brenda Dennis (CITY SEAL) Agenda No. 6 lei f M40111Ll[e I Ed 1 010 [Q17_1►`111/lu l City Council Meeting: March 24, 2015 Department: Engineering Subject: Resolution No. 15 -R -25— A Resolution by the City Council of the City of Schertz, Texas authorizing a Professional Services Agreement with Freese And Nichols, Inc., related to the City's Thoroughfare Plan Update and Roadway Impact Fee Study and other matters in connection therewith BACKGROUND The City publicly requested qualifications from firms to provide the Professional Engineering services necessary to complete an update of the City's Master Thoroughfare Plan and Roadway Impact Fee Study. The purpose of the Master Thoroughfare Plan is to provide a framework of land use and infrastructure which will serve as a guide for the efficient movement of vehicles throughout the growing City. The updated Plan will provide goals and objectives for achieving that efficient movement by providing for public input, evaluating projected growth patterns, and forecasting travel needs through travel demand modeling. A roadway impact fee program will provide a funding mechanism for the implementation of identified capital improvements over a l0 -year planning period. In addition to providing a revenue stream, the impact fee program will ensure that new development projects are assessed a fair share of costs for facilities necessitated by new growth. Forecasts prepared during the preparation of the updated Thoroughfare Plan will be used to establish the impact fee Capital Improvement Plan as required by the Texas Local Government Code. A roadway impact fee credit analysis will also be conducted in order to determine the maximum possible cost per service unit. The City received responses to the RFQ from two well qualified professional engineering firms. Key City Staff reviewed the submissions and conducted interviews with both. After review of scoring, the City contacted Freese and Nichols, Inc., (FNI) and requested a scope and cost proposal regarding the Thoroughfare Plan Update and Roadway Impact Fee Study. Final negotiations with FNI have been held and the City is ready to proceed with approval of the contract. FNI will provide a functional roadway classification system, update the City's roadway design and development standards, review access management standards and provide recommendations for a capital improvements plan of short- and long -term roadway improvement needs. The Plan will be supported through a public process that includes the input of a Steering Committee, public meetings, and a public hearing process for plan adoption. FNI has prepared a proposal to complete the work and the task fees are as follows: Master Thoroughfare Plan: $ 91,910 Roadway Impact Fee Study: $1.16,040 Total $207,950 The City has budgeted a total of $210,000 for the Thoroughfare Plan Update and Impact Fee Study Project. Staff recommends entering into a Professional Services Agreement with Freese and Nichols, Inc., in the amount of $207,950. Goal Approve Resolution 15 -R -25 approving a Professional Services Agreement with Freese and Nichols, Inc., for the City of Schertz Thoroughfare Plan Update and Roadway Impact Fee Study Project. Community Benefit Through proper planning, the City can generate revenue to be used for expansion and improvement of its roadway systems to serve the growing community. Summary of Recommended Action Staff recommends Council approve entering into a Professional Services Agreement with Freese and Nichols, Inc., in the amount of $207,950 for the Thoroughfare Plan Update and Roadway Impact Fee Study Project. FISCAL IMPACT The cost of the project is $207,950 to be paid for from the Master Thoroughfare Plan and Roadway Impact Fee Study Project Account. RECOMMENDATION Staff recommends Council approval of Resolution 15 -R -25. ATTACHMENTS Resolution 15 -R -25 Exhibit 1 Professional Services Agreement including Scope of Services and Cost from Freese and Nichols, Inc., for the preparation of a Thoroughfare Plan Update and Roadway Impact Fee Study 11114 _• N-UnUMMIM 1 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING A PROFESSIONAL SERVICES AGREEMENT WITH FREESE AND NICHOLS, INC., RELATED TO THE CITY'S THOROUGHFARE PLAN UPDATE AND ROADWAY IMPACT FEE STUDY AND OTHER MATTERS IN CONNECTION THEREWITH WHEREAS, The City staff of the City of Schertz (the "City ") has recommended that the City accept the proposal from Freese and Nichols, Inc., related to the City's Thoroughfare Plan Update and Roadway Impact Fee Study; and WHEREAS, City staff has received qualifications indicating that Freese and Nichols, Inc., is qualified to provide such services for the City; and WHEREAS, the City Council has determined that it is in the best interest of the City to contract with Freese and Nichols, Inc., for the City's Thoroughfare Plan Update and Roadway Impact Fee Study Project. THAT: Section 1. The City Council hereby authorizes the City Manager to execute and deliver the contract with Freese and Nichols, Inc., for the City's Thoroughfare Plan Update and Roadway Impact Fee Study Project. Section 2. The recitals contained in the preamble hereof are hereby found to be true, and such recitals are hereby made a part of this Resolution for all purposes and are adopted as a part of the judgment and findings of the City Council. Section 3. All resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Resolution are hereby repealed to the extent of such conflict, and the provisions of this Resolution shall be and remain controlling as to the matters resolved herein. Section 4. This Resolution shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. Section 5. If any provision of this Resolution or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this Resolution and the application of such provision to other persons and circumstances shall nevertheless be valid, and the City Council hereby declares that this Resolution would have been enacted without such invalid provision. Section 6. It is officially found, determined, and declared that the meeting at which this Resolution is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Resolution, was given, all as required by Chapter 551, Texas Government Code, as amended. Section 7. This Resolution shall be in force and effect from and after its final passage, and it is so resolved. PASSED AND ADOPTED, this 24th day of March, 2015. Brenda Dennis, City Secretary (CITY SEAL) CITY OF SCHERTZ, TEXAS Michael R. Carpenter, Mayor -2- CITY OF SCHERTZ STANDARD PROFESSIONAL SERVICES AGREEMENT THE STATE OF TEXAS § GUADALUPE COUNTY § This Professional Services Agreement ( "Agreement ") is made and entered by and between the City of Schertz, Texas, (the "City ") a Texas municipality, and Freese and Nichols, Inc. ( "Professional "). Section 1. Duration, This Agreement shall become effective upon execution by the City and shall remain in effect until satisfactory completion of the Scope of Work unless terminated as provided for in this Agreement. Section 2. Scope of Work. (A) Professional shall perform the Services as more particularly described in the Scope of Work attached hereto as Exhibit "A ". The work as described in the Scope of Work constitutes the "Project ". Unless otherwise provided in the Scope of Work, the anticipated submittal of all Project deliverables is immediately upon completion of the Project. (B) The Quality of Services provided under this Agreement shall be of the level of professional quality performed by Professionals regularly rendering this type of service. (C) The Professional shall perform its Services for the Project in compliance with all statutory, regulatory and contractual requirements now or hereafter in effect as may be applicable to the rights and obligations set forth in the Agreement. (D) The Professional may rely upon the accuracy of reports and surveys provided to it by the City except when defects should have been apparent to a reasonably competent professional or when it has actual notice of any defects in the reports and surveys. Section 3. Compensation. (A) The Professional shall be paid in the manner set forth in Exhibit "A" and as provided herein. Item 6B Professional Services Agreement with FN Page 1 (B) Billing Period: The Professional may submit monthly, or less frequently, an invoice for payment based on the estimated completion of the described tasks and approved work schedule. Subject to Chapter 2251, Texas Government Code (the "Prompt Payment Act "), payment is due within thirty (30) days of the City's receipt of the Professional's invoice. Interest on overdue payments shall be calculated in accordance with the Prompt Payment Act. (C) Reimbursable Expenses: Any and all reimbursable expenses related to the Project shall be included in the scope of services (Exhibit A) and accounted for in the total contract amount in Exhibit "A ". If these items are not specifically accounted for in Exhibit A they shall be considered subsidiary to the total contract amount. Section 4. Changes to the Project Work; Additional Work. (A) Changes to Work: Professional shall make such revisions to any work that has been completed as are necessary to correct any errors or omissions as may appear in such work. If the City finds it necessary to make changes to previously satisfactorily completed work or parts thereof, the Professional shall make such revisions if requested and as directed by the City and such services will be considered as additional work and paid for as specified under following paragraph. (B) Additional Work: The City retains the right to make changes to the Scope of Work at any time by a written order. Work that is clearly not within the general description of the Scope of Work and does not otherwise constitute special services under this Agreement must be approved in writing by the City by supplemental agreement before the additional work is undertaken by the Professional. If the Professional is of the opinion that any work is beyond that contemplated in this Agreement and the Scope of Work governing the project and therefore constitutes additional work, the Professional shall promptly notify the City of that opinion, in writing. If the City agrees that such work does constitute additional work, then the City and the Professional shall execute a supplemental agreement for the additional work and the City shall compensate the Professional for the additional work on the basis of the rates contained in the Scope of Work. If the changes deduct from the extent of the Scope of Work, the contract sum shall be adjusted accordingly. All such changes shall be executed under the conditions of the original Agreement. Any work undertaken by Professional not previously approved as additional work shall be at risk of the Professional. Item 613 Professional Services Agreement with FN Page 2 Section 5. Time of Completion. The prompt completion of the services under the Scope of Work is critical to the City. Unnecessary delays in providing services under a Scope of Work shall be grounds for dismissal of the Professional and termination of this Agreement without any or further liability to the City other than a prorated payment for necessary, timely, and conforming work done by Professional prior to the time of termination. The Scope of Work shall provide, in either calendar days or by providing a final date, a time of completion prior to which the Professional shall have completed all tasks and services described in the Scope of Work. Section 6. Insurance. Before commencing work under this Agreement, Professional shall obtain and maintain the liability insurance provided for in attached Exhibit B throughout the term of this Agreement and thereafter as required herein. In addition to the insurance provided for in Exhibit B, Professional shall maintain the following limits and types of insurance: Professional Liability Insurance: professional errors and omissions liability insurance with limits of liability not less than $1,000,000 per occurrence covering all work performed by the Professional, its employees, sub - contractors, or independent contractors. If this coverage can only be obtained on a "claims made" basis, the certificate of insurance must clearly state coverage is on a "claims made" basis and coverage must remain in effect for at least two years after final payment with the Professional continuing to furnish the City certificates of insurance. Workers Compensation Insurance: The Professional shall carry and maintain during the term of this Agreement, workers compensation and employers liability insurance meeting the requirements of the State of Texas on all the Professional's employees carrying out the work involved in this contract. General Liability Insurance: The Professional shall carry and maintain during the term of this Agreement, general liability insurance on a per occurrence basis with limits of liability not less than $1,000,000 for each occurrence and for fire damage. For Bodily Injury and Property Damage, coverage shall be no less than $1,000,000. As a minimum, coverage for Premises, Operations, Products and Completed Operations shall be $2,000,000. This coverage shall protect the public or any person from injury or property damages sustained Item 6B Professional Services Agreement with FN Page 3 by reason of the Professional or its employees carrying out the work involved in this Agreement. The general aggregate shall be no less than $2,000,000. Automobile Liability Insurance: Professional shall carry and maintain during the term of this Agreement, automobile liability insurance with either a combined limit of at least $1,000,000 per occurrence for bodily injury and property damage or split limits of at least $1,000,000 for bodily injury per person per occurrence and $1,000,000 for property damage per occurrence. Coverage shall include all owned, hired, and non -owned motor vehicles used in the performance of this contract by the Professional or its employees. Subcontractor: In the case of any work sublet, the Professional shall require subcontractor and independent contractors working under the direction of either the Professional or a subcontractor to carry and maintain the same workers compensation and liability insurance required of the Professional. Qualifying Insurance: The insurance required by this Agreement shall be written by non - assessable insurance company licensed to do business in the State of Texas and currently rated "B +" or better by the A.M. Best Companies. All policies shall be written on a "per occurrence basis" and not a "claims made" form. Evidence of such insurance shall be attached as Exhibit "C ". Section 7. Miscellaneous Provisions. (A) Subletting. The Professional shall not sublet or transfer any portion of the work under this Agreement or any Scope of Work issued pursuant to this Agreement unless specifically approved in writing by the City, which approval shall not be unreasonably withheld. Subcontractors shall comply with all provisions of this Agreement and the applicable Scope of Work. The approval or acquiescence of the City in the subletting of any work shall not relieve the Professional of any responsibility for work done by such subcontractor. (B) Ownership of Documents. Upon completion or termination of this Agreement, all documents prepared by the Professional or furnished to the Professional by the City shall be delivered to and become the property of the City. All drawings, charts, calculations, plans, specifications and other data, including electronic files and raw data, prepared under or pursuant to this Agreement shall be made available, upon request, to the City without restriction or limitation on the further use of such materials PROVIDED, HOWEVER, THAT SUCH MATERIALS ARE NOT INTENDED OR REPRESENTED TO BE SUITABLE FOR REUSE BY THE CITY OR OTHERS. ANY REUSE WITHOUT PRIOR VERIFICATION OR ADAPTATION BY THE PROFESSIONAL FOR THE SPECIFIC PURPOSE INTENDED WILL BE AT THE CITY'S SOLE RISK AND WITHOUT LIABILITY TO THE Item 6B Professional Services Agreement with FN Page 4 PROFESSIONAL. Where applicable, Professional shall retain all pre- existing proprietary rights in the materials provided to the City but shall grant to the City a non - exclusive, perpetual, royalty -free license to use such proprietary information solely for the purposes for which the information was provided. The Professional may, at Professional's expense, have copies made of the documents or any other data furnished to the City under or pursuant to this Agreement. (C) Professional's Seal. To the extent that the Professional has a professional seal it shall be placed on all documents and data furnished by the Professional to the City. All work and services provided under this Agreement will be performed in a good and workmanlike fashion and shall conform to the accepted standards and practices of the Professional's industry. The plans, specifications and data provided by Professional shall be adequate and sufficient to enable those performing the actual work to perform the work as and within the time contemplated by the City and Professional. The City acknowledges that Professional has no control over the methods or means of work nor the costs of labor, materials or equipment. Unless otherwise agreed in writing, any estimates of costs by the Professional are for informational purposes only and are not guarantees. (D) Compliance with Laws. The Professional shall comply with all federal, state and local laws, statutes, ordinances, rules and regulations, and the orders and decrees of any courts, administrative, or regulatory bodies in any matter affecting the performance of this Agreement, including, without limitation, worker's compensation laws, minimum and maximum salary and wage statutes and regulations, and licensing laws and regulations. When required, the Professional shall furnish the City with satisfactory proof of compliance. (E) Independent Contractor. Professional acknowledges that Professional is an independent contractor of the City and is not an employee, agent, official or representative of the City. Professional shall not represent, either expressly or through implication, that Professional is an employee, agent, official or representative of the City. Income taxes, self - employment taxes, social security taxes and the like are the sole responsibility of the Professional. (F) Non - Collusion. Professional represents and warrants that Professional has not given, made, promised or paid, nor offered to give, make, promise or pay any gift, bonus, commission, money or other consideration to any person as an inducement to or in order to obtain the work to be provided to the City under this Agreement. Professional further agrees that Professional shall not accept any gift, bonus, commission, money, or other consideration from any person (other than from the City pursuant to this Agreement) for any of the services performed by Professional under or related to this Agreement. If any such gift, bonus, commission, money, or other consideration is received by or offered to Professional, Professional shall immediately report that fact to the City and, at the sole Item 6B Professional Services Agreement with FN Page 5 option of the City, the City may elect to accept the consideration for itself or to take the value of such consideration as a credit against the compensation otherwise owing to Professional under or pursuant to this Agreement. (G) Force Majeure. If the performance of any covenant or obligation to be performed hereunder by any party is delayed as a result of circumstances which are beyond the reasonable control of such party (which circumstances may include, without limitation, pending litigation, acts of God, war, acts of civil disobedience, fire or other casualty, shortage of materials, adverse weather conditions [such as, by way of illustration and not of limitation, severe rain storms or below freezing temperatures, or tornados] labor action, strikes or similar acts, moratoriums or regulations or actions by governmental authorities), the time for such performance shall be extended by the amount of time of such delay, but no longer than the amount of time reasonably occasioned by the delay. The party claiming delay of performance as a result of any of the foregoing force majeure events shall deliver written notice of the commencement of any such delay resulting from such force majeure event not later than seven (7) days after the claiming party becomes aware of the same, and if the claiming party fails to so notify the other party of the occurrence of a force majeure event causing such delay and the other party shall not otherwise be aware of such force majeure event, the claiming party shall not be entitled to avail itself of the provisions for the extension of performance contained in this subsection. (H) In the case of any conflicts between the terms of this Agreement and wording contained within the Scope of Services, this Agreement shall govern. The Scope of Services is intended to detail the technical scope of services, fee schedule, and contract time only and shall not dictate Agreement terms. Section 8. Termination. (A) This Agreement may be terminated: (1) By the mutual agreement and consent of both Professional and City; (2) By either party, upon the failure of the other party to fulfill its obligations as set forth in either this Agreement or a Scope of Work issued under this Agreement; (3) By the City, immediately upon notice in writing to the Professional, as consequence of the failure of Professional to perform the services contemplated by this Agreement in a timely or satisfactory manner; (4) By the City, at will and without cause upon not less than thirty (30) days written notice to the Professional. Item 613 Professional Services Agreement with FN Page 6 (B) If the City terminates this Agreement pursuant to Section 5 or subsection 8(A)(2) or (3), above, the Professional shall not be entitled to any fees or reimbursable expenses other than the fees and reimbursable expenses then due and payable as of the time of termination and only then for those services that have been timely and adequately performed by the Professional considering the actual costs incurred by the Professional in performing work to date of termination, the value of the work that is nonetheless usable to the City, the cost to the City of employing another Professional to complete the work required and the time required to do so, and other factors that affect the value to the City of the work performed at time of termination. In the event of termination that is not the fault of the Professional, the Professional shall be compensated for all basic, special, and additional services actually performed prior to termination, together with any reimbursable expenses then due. Section 9. Indemnification. Professional agrees to indemnify and hold the City of Schertz, Texas and all of its present, future and former agents, employees, officials and representatives harmless in their official, individual and representative capacities from any and all claims, demands, causes of action, judgments, liens and expenses (including reasonable attorney's fees, whether contractual or statutory), costs and damages (whether common law or statutory), costs and damages (whether common law or statutory, and whether actual, punitive, consequential or incidental), of any conceivable character, for injuries to persons (including death) or to property (both real and personal) created by, arising from or in any manner relating to the services or goods performed or provided by Professional in a negligent manner— expressly including those arising through strict liability or under the constitutions of the United States or Texas — BUT ONLY TO THE EXTENT ALLOWABLE BY SEC. 271.904(a) OF THE TEXAS LOCAL GOVERNMENT CODE AS APPLICABLE. Section 10. Notices. Any notice required or desired to be given from one party to the other party to this Agreement shall be in writing and shall be given and shall be deemed to have been served and received (whether actually received or not) if (i) delivered in person to the address set forth below; (ii) deposited in an official depository under the regular care and custody of the United States Postal Service located within the confines of the United States of America and sent by certified mail, return receipt requested, and addressed to such party at the address hereinafter specified; or (iii) delivered to such party by courier receipted delivery. Either party may designate another address within the confines of the continental United States of America for notice, but until written notice of such change is actually received by the other party, the last address of such party designated for notice shall remain such party's address for notice. Section 11. No Assignment. Neither party shall have the right to assign that party's Item 6B Professional Services Agreement with FN Page 7 interest in this Agreement without the prior written consent of the other party. Section 12. Severability. If any term or provision of this Agreement is held to be illegal, invalid or unenforceable, the legality, validity or enforceability of the remaining terms or provisions of this Agreement shall not be affected thereby, and in lieu of each such illegal, invalid or unenforceable term or provision, there shall be added automatically to this Agreement a legal, valid or enforceable term or provision as similar as possible to the term or provision declared illegal, invalid or unenforceable. Section 13. Waiver. Either City or the Professional shall have the right to waive any requirement contained in this Agreement that is intended for the waiving party's benefit, but, except as otherwise provided herein, such waiver shall be effective only if in writing executed by the party for whose benefit such requirement is intended. No waiver of any breach or violation of any term of this Agreement shall be deemed or construed to constitute a waiver of any other breach or violation, whether concurrent or subsequent, and whether of the same or of a different type of breach or violation. Section 14. Governing Law; Venue. This Agreement and all of the transactions contemplated herein shall be governed by and construed in accordance with the laws of the State of Texas. The provisions and obligations of this Agreement are performable in Guadalupe County, Texas such that exclusive venue for any action arising out of this Agreement shall be in Guadalupe County, Texas. Section 15. Paragraph Headings; Construction. The paragraph headings contained in this Agreement are for convenience only and shall in no way enlarge or limit the scope or meaning of the various and several paragraphs hereof. Both parties have participated in the negotiation and preparation of this Agreement and this Agreement shall not be construed either more or less strongly against or for either party. Section 16. Binding Effect. Except as limited herein, the terms and provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, devisees, personal and legal representatives, successors and assigns. Section 17. Gender. Within this Agreement, words of any gender shall be held and construed to include any other gender, and words in the singular number shall be held and construed to include the plural, unless the context otherwise requires. Section 18. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, and all of which shall constitute but one and the same instrument. Item 6B Professional Services Agreement with FN Page 8 Section 19. Exhibits. All exhibits to this Agreement are incorporated herein by reference for all purposes wherever reference is made to the same. Section 20. Entire Agreement. It is understood and agreed that this Agreement contains the entire agreement between the parties and supersedes any and all prior agreements, arrangements or understandings between the parties relating to the subject matter. No oral understandings, statements, promises or inducements contrary to the terms of this Agreement exist. This Agreement cannot be changed or terminated orally. Section 21. Relationship of Parties. Nothing contained in this Agreement shall be deemed or construed by the parties hereto or by any third party to create the relationship of principal and agent or of partnership or of joint venture or of any association whatsoever between the parties, it being expressly understood and agreed that no provision contained in this Agreement nor any act or acts of the parties hereto shall be deemed to create any relationship between the parties other than the relationship of independent parties contracting with each other solely for the purpose of effecting the provisions of this Agreement. Section 22. Right To Audit. City shall have the right to examine and audit the books and records of Professional with regards to the work described in Exhibit A, or any subsequent changes, at any reasonable time. Such books and records will be maintained in accordance with generally accepted principles of accounting and will be adequate to enable determination of: (1) the substantiation and accuracy of any payments required to be made under this Agreement; and (2) compliance with the provisions of this Agreement. 23. Dispute Resolution. In accordance with the provisions of Subchapter I, Chapter 271, TEX. LOCAL GOVT CODE, the parties agree that, prior to instituting any lawsuit or other proceeding arising from a dispute under this agreement, the parties will first attempt to resolve the dispute by taking the following steps: (1) A written notice substantially describing the nature of the dispute shall be delivered by the dissatisfied party to the other party, which notice shall request a written response to be delivered to the dissatisfied party not less than 5 days after receipt of the notice of dispute. (2) If the response does not reasonably resolve the dispute, in the opinion of the dissatisfied party, the dissatisfied party shall give notice to that effect to the other party whereupon each party shall appoint a person having authority over the activities of the respective parties who shall promptly meet, in person, in an effort to resolve the dispute. (3) If those persons cannot or do not resolve the dispute, then the parties shall each appoint a person from the highest tier of managerial responsibility within each respective party, who shall then promptly meet, in person, in an effort to resolve the dispute. Item 6B Professional Services Agreement with FN Page 9 24. Disclosure of Business Relationships /Affiliations; Conflict of Interest Questionnaire. Professional represents that it is in compliance with the applicable filing and disclosure requirements of Chapter 176 of the Texas Local Government Code. EXECUTED, by the City on this the CITY: By:_ Name Title: John C. Kessel City Manager ADDRESS FOR NOTICE: CITY City of Schertz Attn: John C. Kessel, City Manager 1400 Schertz Parkway Schertz, Texas 78154 with a copy to: City Attorney City of Schertz, Texas Attn: Charles E. Zech 2517 N. Main Avenue San Antonio, Texas 78212 Item 6B Professional Services Agreement with FN Page 10 day of , 20 PROFESSIONAL: By: Name: Title: PROFESSIONAL Freese and Nichols, Inc. 4055 International Plaza Suite 200 Fort Worth, Texas 76109 Exhibit "A" Scope of Services BASIC SERVICES: FNI shall render the following professional services in connection with the development of the Project: Phase 1 - Schertz Thoroughfare Plan The purpose of the Thoroughfare Plan is to provide a framework for land use and infrastructure which will serve as a guide for the efficient growth and movement of vehicles throughout Schertz and its extraterritorial jurisdiction. This Plan will provide goals and objectives for achieving safe and efficient flow of transportation facilities, provide for public input and dissemination of plan information via social media, prepare forecasts of travel needs through travel demand modeling, evaluate projected growth patterns, conduct special area planning, provide a functional classification system of roadway, establish roadway design and development standards, review of access management standards, and provide recommendations for a capital improvements plan of short and long -term roadway improvements needs. The development of the plan will be supported through a public process that includes the input of a Steering Committee Coordination, public meetings, and a public hearing process for plan adoption. Task 1 — Issues Identification and Policy Development The development of a set of broad - based, clearly stated thoroughfare plan policies will provide the City with a mechanism to meet objectives that support the achievement of an effective and efficient transportation system. The identification of issues and development of policies would be based on input from a public meeting, dialogue with a Thoroughfare Plan Steering Committee (Steering Committee) and City Staff input. The City shall decide the appointment of the Steering Committee as the coordinating committee for this phase of effort. Activities 1.1 Issues Identification. Seek input of thoroughfare system issues from City Staff and the Steering Committee. Obtain Steering Committee input on strengths, weaknesses, needs and opportunities of the transportation network. One (1) concurrent meeting will be conducted with City Staff and the Steering Committee. 1.2 Plan Goals and Objectives. Prepare broad - based, clearly stated thoroughfare plan strategies and policies to provide the City with a mechanism to meet objectives that support the achievement of an effective transportation system. Policies of the existing Thoroughfare Plan would serve as a basis for update as part of the plan development. Task Products Issues identification for plan development and development of plan goals and objective relating to: general mobility, regional planning coordination, roadway system connectivity, roadway standards and multi -modal considerations. Task 2 - Agency Coordination FNI will obtain input of other area thoroughfare planning efforts and /or studies within Schertz and the ETJ area to ensure that connectivity with other current and long -range regional system enhancements is considered. Data will be collected from Guadalupe, Comal and Bexar Counties, Alamo Area Metropolitan Planning Organization ( AAMPO), the Texas Department of Transportation (TXDOT) and adjacent municipalities. The Union Pacific Railroad and the Lone Star Rail District will also be contacted for long- term /timing of rail improvements. FNI will coordinate with the AAMPO for the transfer of available travel forecast model files, communicate City desires /outcome of the Plan effort and discuss incorporation of the Schertz Thoroughfare Plan into the MTP planning process. Activities 2.1 Review of existing thoroughfare plans and /or planning efforts from adjacent area agencies and municipalities to coordinate roadway system compatibility. 2.2 Obtain roadway planning initiatives by Guadalupe, Comal and Bexar County, AAMPO and TXDOT. 2.3 Obtain the latest travel forecasts from the Metropolitan Transportation Plan for comparison with travel forecasts to be prepared as part of Task 5.0. 2.4 Obtain UP Railroad and Lone Star District system plans and improvements. 2.5 Meeting with AAMPO to coordinate available travel forecast model data. Task Products Coordination of other transportation studies /efforts of other jurisdictions and agencies with the Schertz planning process. Task 3 — Analysis of Existing Thoroughfare System FNI will conduct a general overview of the existing thoroughfare system to serve as a basis for plan development. Elements included as part of this assessment will include: existing functional classification, existing traffic signal locations, existing and future major traffic generators, existing daily volumes, recent accident history and planned transportation improvements. Data of traffic volumes will be based on available information as compiled by the City, TxDOT, AAMPO and /or traffic volume count data compiled as part of the impact fee study. For other elements of the existing system evaluation, FNI will rely on data compiled as part of data collection conducted in Task 1 and other existing data as compiled by the City (such as traffic signal locations, accident summary reports and planned improvements). Activities 3.1 Data collection and analysis of existing thoroughfare network. 3.2 Summary of existing current and funded long -term roadway system improvements. Task Product Analysis of existing roadway system to serve as a basis for thoroughfare plan development. Task 4 — Future Land Use Growth Scenario Future land use serves as the basis from which the thoroughfare plan is based. The prior future land use plan was officially adopted in 2001 and supplemented in the 2011 Sector Plans. The future land use growth scenario is not intended to serve as the official Future Land Use Plan of the City, but rather a development scenario to serve as a basis for travel forecast modeling. The current future land use plan will serve as a starting point from which the development scenario will commence. Based on the results of the land planning, FNI will coordinate with the City on location and intensity of 10 and 20 -year growth patterns. FNI will rely on the City Planning Department to assist with defining these milestone parameters. Sub -Task 4.1— Planning Meeting FNI will conduct a planning meeting with key members of City Staff for the purpose of collectively confirming or defining an appropriate future land use scenario to serve as a basis for use in travel forecast modeling. FNI will prepare mapping for use in the conduct of the planning meeting and will utilize existing GIS data from the City for base mapping (existing future land use plan, streets, floodplain, city limits, ETJ, etc.). As a prelude to land planning, an overview of key issues identified as part Task 1 and growth trends /factors will be provided to the planning group. FNI will provide a summary of initial plan input as well as key elements of the transportation network. The City will assist FNI with an overview of population growth, housing trends, existing and anticipated growth areas, key land use considerations and pertinent environmental factors to be considered. Projections of 10 and 20 -year growth (growth rate and dwelling units) will be provided by the City. Activities 4.1 Conduct one planning meeting between City and FNI Staff for the development of a viable future land use scenario. 4.2 Summary map of the future land use growth scenario for use in travel forecast modeling (Phase 2 efforts). 4.3 Preparation of support materials (issues, transportation) for the planning meeting. (The City to support FNI with planning background and projected growth.) 4.4 FNI coordination with the City on 10 and 20 -year growth and associated development intensity within each time frame. Task Products Future land use growth scenario which will serve as a basis for the assessment of ultimate roadway needs. Task 5 — Development of the Thoroughfare Plan Based on plan input, future land use planning and travel demand modeling (Phase 2 impact fee study) FNI will update the Thoroughfare Plan to address long -term needs for community development. Data from the model will also be used for technical analyses for determination of roadway sizing and /or system improvements necessary to accommodate vehicular demands of planned future land uses. The Thoroughfare Plan will also incorporate considerations for multi -modal connectivity, as well as corridor and access management coordination. Based on projected needs, the FNI Team will update the thoroughfare network /functional classifications, as necessary to facilitate long -term mobility needs of the city. Plan recommendations will address both short (0 -10 years) and long -term (10 -20 years) timing. The plan will also consider regional connectivity with key corridors within the County. Based on review of existing standards, we will prepare updated guidelines to address functional class, roadway geometrics and general design parameters. The Plan will also address multi -modal connectivity with potential commuter rail and incorporation of bike /trail system plans. The FNI Team will identify strategies and system alternatives to address the system deficiencies and growth identified in previous task efforts, as well as transportation planning issues identified in discussions with the City, Steering Committee and public input. Thoroughfare Plan alternatives will be developed and based on feedback; strategies will then be refined, as appropriate. Strategies will be limited to large -scale system improvements. Sub -Task 5.1 Roadway Functional Street Classification Update the thoroughfare plan network for alignment and functional street classification. Develop a palette of roadway standards to consider alternative development standards or complete streets concepts. Alternative sections and general street dimensions will be graphically articulated. Sub -Task 5.2 Non - Motorized Mobility Planning Incorporate bike and pedestrian network systems into the thoroughfare plan. The introduction of such networks will be based on previously developed plans. These elements will be graphically displayed on the thoroughfare plan map and depict linkages for bike and pedestrian systems between key connection points of the City. City Staff will assist and identify key elements for connection within the city and or special areas (Task 6.3). Supporting text describing pedestrian /bike systems and cross - section needs will also be included. Sub -Task 5.3 Corridor and Access Management Standards FNI will review existing access management standards currently used by the city and provide recommendations for modification /update. Recommendations for modification will be summarily provided. Sub -Task 5.4 Thoroughfare Plan Document The Thoroughfare Plan will be summarized on a single map and depict roadway functional classes throughout the study area. Supporting roadway sections will detail the composition of each functional class facility. Technical documentation will be summarized in a concise report detailing: study overview, plan goals and objectives, existing transportation conditions, travel demand modeling, functional classification system, future needs and plan recommendations. FNI will provide the City website administrator with electronic files (PDF format) of materials for posting. The City will upload and maintain all media on its website. Activities 5.1 Develop thoroughfare functional classification system. 71dentify thoroughfare standards (roadway cross - sections, right -of -way requirements, provision for sidewalks, general roadway design parameters, intersection requirements). 5.2 Identify specific thoroughfare improvements for short term and long -term implementation. 5.3 Incorporate bike and pedestrian and network systems into thoroughfare plan. 5.4 Provide access management recommendations plan document. 5.5 Prepare Draft Thoroughfare Plan document and map and present to the Steering Committee. 5.6 Prepare Draft Final Thoroughfare Plan document and map and present to the Planning and Zoning Commission. 5.7 Forum for Public Input: Conduct one (1) public meeting to review the proposed Thoroughfare Plan. Task Products Draft and Final Thoroughfare Plan document and associated maps for consideration by the City. Task 6 — Plan Strategies and Capital Improvement Programming Plan goals and objectives derived in Task 1 set the stage for actionable outcomes for the thoroughfare plan. Plan strategies to support Thoroughfare Plan recommendations include: changes to city policies for plan implementation and development of a Capital Improvements Program (CIP). The development of the CIP will result in actions targeted for short (less than 10- years) and long -term (greater than 10- years) time frames. Projects may include roadway corridors for implementation, phased improvements, intersection or individual turn -lane improvements, or specific policy actions. This overall CIP will also serve as the umbrella of projects from which a ten -year impact fee CIP (Phase 2, Task 7) will be formed. Impact fee systems require a specific set of roadway projects that are typically separate from a traditional general CIP program. Activities 6.1 Identify changes to city policies to support plan implementation. 6.2 Prepare a project listing based on the proposed thoroughfare plan recommendations and collaborate with the City staff. 6.3 Attend a meeting with the City and /or Transportation Plan Steering Committee to facilitate selection of the CIP projects. 6.4 Identify specific roadway projects to be included for impact fee program consideration (Phase 2 effort). Task Products Policy changes and capital improvements programming for 10 and 20 -year project needs to support thoroughfare plan recommendations. Task 7 — Plan Adoption A draft of the thoroughfare plan will be prepared and submitted to the Steering Committee for review and comment. Based on a consolidated set of comments provided by the city, a revised draft ( "final draft ") will be prepared for final review and recommendation for consideration by the City Planning and Zoning Commission. Draft reports to the Steering Committee and Planning and Zoning Commission will be provided in electronic PDF format for the City to reproduce as appropriate during the planning process. Subject to final public approvals, one (1) final report will be prepared and submitted in electronic format to the City for further reproduction purposes, as desired. The FNI Team will support the Thoroughfare Plan during the public hearings process with presentations to the Planning and Zoning Commission and City Council. Activities 7.1 Preparation of initial draft, final draft and Final Report documentation. 7.2 Two public hearing meetings for adoption of Thoroughfare Plan. Task Products Draft and final plan reports and plan adoption. Summary of Phase 1 Meetings For this phase of effort, we have estimated that up to six (6) meetings will be held with the City/ Steering Committee. Meetings with the Steering Committee are anticipated to span across the duration of the project. Additionally, up to three (3) meetings are anticipated with the public and include one public input meetings (input to the draft thoroughfare plan) and two public hearings. For cost efficiencies, meetings will be combined with other city meeting to the extent possible. Phase 1 Reports and Mapping All documents will be prepared using Microsoft Word software. To ensure retention of proper formatting, submittals to the City will be made via PDF electronic file format. At the conclusion of the study, electronic files will be submitted to the City for use by the City as desired. All mapping will be created in ESRI ArcGIS software and copies of maps transmitted via PDF format. Phase 2 — Roadway Impact Fees The purpose of the roadway impact fee program is to provide a funding mechanism for the implementation of certain new capital improvements over a 10 -year planning period. In addition to providing a revenue stream, the impact fee program will ensure the new development is paying their fair share of facilities necessitated by new growth. This phase of effort is predicated on the requirements set forth in Chapter 395 and 212 of the Texas Local Government Code. Work Area A. Roadway Impact Fee System To develop and implement a roadway impact fee system by developing a service area structure, preparing an inventory of the existing roadway system, determining projected roadway demands for the 10 -year planning period, assisting in the preparation of a capital improvements program, calculating the maximum fee per service -unit per service area, developing a land -use equivalency table and providing a written report documenting methodology, findings and calculation of fees. An optional service allowing for the conduct of a Finance Study to determine the maximum chargeable amount allowable by the City is also highlighted. TASK 1 - PROJECT INITIATION /ORIENTATION FNI will meet with the Study Team (Consultant team and City staff) to discuss the study methodology and approach, coordination between the consultant team and city staff and schedule. This meeting will also serve to facilitate the transfer of all pertinent data for the conduct of the study. On this same meeting date, it is envisioned that FNI would also present the methodology and approach to the Roadway Impact Fee Advisory Committee. Activities 1.1 Hold project initiation meeting to discuss methodology and approach, coordination between the consultant team and schedule. 1.2 Review available traffic and roadway data. 1.3 Obtain any pertinent travel forecast data for the area. 1.4 Reduce data into impact fee database format. 1.5 Presentation of methodology and approach to Advisory Committee. Task Products: 1. Study Team and Advisory Committee meeting 2. Collection of relevant data TASK 2 - LAND USE ASSUMPTIONS Land use assumptions (LUA) for impact fees will be prepared based on 10 -year growth /data derived from the planning meeting conducted in Phase 1, Task4. Data of population and employment will for a base year (assumed to be 2015) and 10 -year scenario (assumed to be 2025) will be summarized by the service area structure prepared as part of Phase 2, Task4. The LUA will serve as the basis for impact fee calculations to be derived in Task 10 below and correlated with current city limits per statutory requirements of Chapter 395. Data of population and employment growth will be broken out in the following manner: population by dwelling unit and employment by industry (basic, service, retail) by roadway service areas for year 2015 and 2025 and compiled into a report for submittal to the city for review and comment. Subject to comments, the draft report will be forwarded to the CIAC for their review and a final report will be prepared for use in the initial public hearing required for impact fee (Land Use Assumptions and CIP). Task Products: Final report on the development and adoption of impact fee land use assumptions. TASK 3 - DATA COLLECTION FNI will assemble available roadway inventory, construction cost data (recent bid tab date for various type roadway cross - sections built and other available traffic count data from the City and /or collected as part of Phase 1 (Task 3) work efforts. FNI will supplement the data by conducting up to thirty (30) PM peak hour directional traffic volume counts throughout the city. If available, other recently collected traffic data or study information will be used to further supplement this effort. Estimates of other critical roadways throughout the city will be developed from volume data collected. City Staff will assist with the identification of traffic count locations. Data from the traffic volume counts will also be used in the travel demand process for the validation of the forecast model. This data will be reviewed and a list or additional data needs that are relevant to the study will be prepared and submitted to the City. Following completion of the data collection effort, we will compile the data into a database for use in subsequent analysis. Activities 3.1 Collect available data of existing roadway system (i.e., geometries and traffic count data). 3.2 Obtain historic unit cost information from the City for construction and right -of -way acquisition of various roadway facilities by facility type within the city. 3.3 Supplemental traffic volume counts (PM peak hour, direction) at up to thirty (30) locations. Task Products: Existing Conditions database for subsequent analysis. TASK 4 - DEVELOPMENT OF SERVICE AREA STRUCTURE FNI will develop a service area structure based on the review of the following information; city boundaries, conformance with legislative requirements (six -mile maximum), existing traffic survey zones (from available travel forecast), projected growth patterns, potential roadway projects, existing geographic features, existing thoroughfare system. Following the completion of this task, City Staff will review and approve the service area structure prior to commencement of supplemental tasks and analyses. Task Products: Service Area Structure and Boundary Map. TASK 5 - PREPARATION OF INVENTORY OF EXISTING ROADWAYS Based on the data assembled and collected in Task 3 and the service area boundaries developed in Task 4, FNI will prepare an inventory of existing roadways for each of the analysis areas. The existing inventory will contain the following information of collector and arterial status roadways by service area: • Roadway segment name. • Roadway segment limits. • Length (in miles). • Number of lanes. • Type (divided, undivided, minor arterial, major arterial, etc.). • Existing traffic volume (by direction during the peak hour). • Capacity supplied. • Existing deficiencies (in any). Task Products: 1 Inventory of existing roadway system by service area. TASK 6 - DETERMINATION OF PROJECTED ROADWAY DEMAND Atravel forecast model will be developed to serve as a technical tool for the determination of short and long -term roadway needs. The model will also be used for the determination of 10 -year (VMT) growth that will be aggregated by service area and reflect the net new growth as a result of development over the 10 -year planning period. Sub -Task 6.9 - Assessing and Preparing Travel Demand Model The FN Team will coordinate with City staff to obtain existing agency demand models, its associated zonal structure and socio- demographic files, trip generation and trip distribution program files, and network files. The FNI Team will review model documentation to determine network parameters, stationing and base validation year. Other tasks to be addressed: . Assess the traffic analysis zones, especially around the periphery of the study area, to determine if splitting zones would produce better trip assignments. The magnitude of households and employment and the extent of the roadway network within each zone will primarily drive this assessment. . Assess the current roadway networks for both base and future year scenarios and determine consistency with existing conditions and horizon year network and update accordingly. . Coordinate with MPO staff to obtain its most recently approved Traffic Survey Zone (TSZ) data (i.e., households, population, and employment by sector (basic, retail, service, and possibly education) and network for the outermost planning horizon year. . Update TSZ socio- demographics to represent the derived conceptual future land use scenario developed for the city for a 10 and 20 -year forecasting. Outside of the city, the regional portion of the TSZ data provided by AAMPO will be utilized. Sub -Task 6. 2 - Prepare Travel Demand Forecasts Projected traffic impacts are normally determined relative to a future base condition. The most common future base condition is a scenario based on implementation of the currently adopted Comprehensive Plan for a community. This scenario will normally not represent a "build -out' of the Comprehensive Plan, but rather a reasonable quantity of new development based on past trends, current development approvals and other pending approvals. We have assumed a horizon of 20- years. Sub -tasks to be performed include; . Prepare travel forecast for horizon year traffic on existing plus committed network. This analysis will provide insight to operation conditions on the network as it stands today, as well as level of needs relative to the existing network. . Prepare travel forecast of horizon year associated thoroughfare plan improvements. This analysis will determine the effectiveness of the proposed roadway network and associated range of improvements relative to anticipated growth in the 20 -year scenario. A 10 -year forecast will be prepared for use in impact fee CIP development. *Prepare up to two (2) additional travel forecasts with alternative system improvements, as desired. Activities 5.1 Obtain existing agency travel demand model; review and determine network and socio- demographic updates, as necessary. 5.2 Update model networks to reflect existing and horizon year conditions. 5.3 Update socio- demographic files to reflect the future land use scenario as derived in Task 4.0. 5.4 Prepare 20 -year travel forecast on existing plus committed network and thoroughfare conditions per a horizon year plan. Prepare a 10 -year forecast for use in the development of roadway impact fees. 5.5 Prepare up to two (2) additional alternate scenario travel forecasts. 5.6 Prepare associated mapping output depicting projected daily traffic volume and associated link level of service. 5.7 Calculate and aggregate VMT growth by service area for the 10 -year planning period. Task Products: Development and use of a sub -area travel demand model. Projected roadway demand generated by new development over the 10 -year planning period for impact fees. TASK 7 - PREPARATION OF ROADWAY CAPITAL IMPROVEMENTS PROGRAM Capital improvements planning prepared as part of the Thoroughfare Plan will serve as the basis defining the impact fee CIP. This task will define specific project limits and design characteristics and prepare associated cost estimates for individual projects. Cost estimates to be developed include, engineering, right -of -way, construction, and debt service. Unit cost data by roadway facility type will be developed and confirmed by City Staff at the outset of CIP preparation process and serve as a basis forthe development of project costs. It is assumed that City Staff will provide information related to any previous assessments collected from development for previously built roadway facilities and associated cost data (construction, engineering, right -of -way and debt service) for projects identified for system recoupment. The following information will be developed: • Roadway segment name ■ Proposed project limits • Number of lanes ■ Length ■ Project cost Task Products: Proposed roadway capital improvements program. TASK 8 - ROADWAY IMPACT FEE CREDIT ANALYSIS Impact fee legislation dictates that a plan for awarding a credit for the portion of ad valorem tax and utility service revenues generated by new service units during the program period be developed. In the alternative, a credit equal to 50% of the total projected cost of implementing the capital improvements plan may be given. To determine the appropriate credit due for facility improvements, an analysis of city financial reports will be conducted. The results of this analysis will be an impact fee (cost per service unit) that considers this credit. It is assumed that one (1) credit calculation of the roadway CIP identified in Task 7 will be conducted. The following tasks will be performed as part of this effort. 8.1 Data Collection: The Financial Consultant will meet with the City /Finance Department to discuss methodological approach and associated data needs for the analysis. Data to be obtained, at a minimum, includes the most recent adopted budget and the audited annual financial reports. No auditing will be conducted and the credit analysis will rely on the City for the accuracy of information provided. 8.2 Review Roadway Impact Fee Capital Improvements Plan: Review the roadway impact fee capital improvements plan for cost of proposed improvements, capacity provided, and percent of CIP attributable to growth over the 10 -year planning window. 8.3 Perform CreditAnalysis: Perform an analysis to determine the credit based on the portion of ad valorem tax generated by the new development during the program period and long term bond debt service related to the growth related street CIP projects. The credit will be applied to the cost of the impact fee CIP needed over the 10 -year planning period. The analysis will be conducted on a service area basis. 8.4 Prepare Memorandum and Present to City. A draft memorandum documenting methodology, associated calculations and credit results will be prepared and submitted to the City. A meeting to present the results and findings of the analysis will be held with the City and Steering Committee. A final memorandum will be provided electronically (PDF file format) for the City to provide and distribute copies, as appropriate. For this task, a total of two (2) meetings would be conducted. To reduce the cost of expenditures, a meeting with the Steering Committee would be held the same day as a City Staff meeting. Task Products: Credit analysis for the proposed roadway impact fee CIP by service area. TASK 9 - PREPARATION OF ROADWAY PROJECTS DATABASE FNI will utilize the information contained in the Capital Improvement Program and Credit Analysis to develop a roadway projects database for the impact fee system. This database will include for each service area the following information: • Roadway segment name • Roadway segment limits • Number of lanes • Length • Type • Cost ■ Number of vehicle miles of capacity supplied Task Products: 1 Proposed roadway projects by service area. TASK 10 - CALCULATION OF MAXIMUM COST PER SERVICE UNIT Based on the information developed in previous tasks, the maximum cost per service unit will be calculated for each service area of the impact fee system. Task Products: 1 Maximum fee per service unit by service area. TASK 11 - DEVELOPMENT OF LAND USE EQUIVALENCY TABLE FNI will prepare a listing of specific land use type (based on ITE land use categories) and develop a recommended service unit generation rate for each land use. The service unit generation rate will be based on the number of primary trips generated by the land use during the peak hour, and the average trip length of each trip. Trip generation data will based on published statistics contained in the ITE Trip Generation Manual, 9t" Edition. Trip length data from the travel forecast model (Phase 1, Task 5) will be used to serve as a basis for derived lengths for individual land uses. Task Products: 1 Land use Equivalency Table. TASK 12 - DOCUMENTATION FNI will prepare a draft report that documents the methodology, findings, and recommendations of the study. FNI will submit an electronic copy of the report to City Staff and Study Team for review. Subsequent to this review, revised electronic draft report will be submitted for presentation to the Advisory Committee. Based on comments received within two weeks from the presentation to the Advisory Committee, a final report will be prepared and one (1) electronic file (PDF format) will be submitted to the City for reproduction as appropriate. We will also transmit all final report and database materials to the City. FNI will also prepare a fee calculator spreadsheet enabling city staff and /or the general public of calculating roadway impact fees for developments of any size with land uses listed in the Land Use Equivalency Table (Task 11). Task Products: 1. Electronic copy of initial draft document for City and Team review. 2. Electronic draft final report for CIAC review. 3. Final report in PDF format. 4. Electronic files containing final report and impact fee database. 5. Fee calculator spreadsheet for use in calculating impact fees for specific land uses. TASK 12 - ROADWAY IMPACT FEE ORDINANCE SUPPORT The FNI Team will support the City in the development of the impact fee ordinance. The FNI Team will assist the City in the preparation of an impact fee ordinance through provision of examples from other Texas cities. FNI will be available at the public hearings to support the City legal staff in answering questions on the impact ordinance. Summary of Phase 2 Meetings Based on the tasks described above, up to seven (7) will be conducted for this phase (Phase 2 Work Area A) of effort: ■ 3 - Study Team Meetings (Initial kick -off and up to two Study Team meetings) ■ 3 - Advisory Committee Meetings (draft LUA/CIP and final LUA/CIP and impact fee) ■ 2 - Public Hearing /Adoption Meetings (LUA/CIP and impact fee) To reduce project costs, project meetings will be held on the same date where possible. Work Area B. Roadway Proportionality The purpose of this work area is to define a methodological approach capable for evaluating the appropriateness of proposed developer exactions relative to traffic impacts on the Schertz roadway system. Our approach to this assessment is an analysis of traffic utilization relative to capacity being provided by proposed development improvements. The vehicle -mile (defined in Phase 2 Work Area A of Roadway Impact Fees) will serve as the service unit of measure. The cost per service unit and the land use equivalency table defined in Phase 2 -Work Area A will be used in proportionality analyses. The City will lead efforts in the development of all ordinance language, associated meetings, and elements necessary for the implementation of proportionality assessments. Exhibit "B" REQUIREMENTS FOR ALL INSURANCE DOCUMENTS The Professional shall comply with each and every condition contained herein. The Professional shall provide and maintain the minimum insurance coverage set forth below during the term of its agreement with the City. Any Subcontractor(s) hired by the Professional shall maintain insurance coverage equal to that required of the Professional. It is the responsibility of the Professional to assure compliance with this provision. The City of Schertz accepts no responsibility_ arising from the conduct, or lack of conduct, of the Subcontractor. INSTRUCTIONS FOR COMPLETION OF INSURANCE DOCUMENT With reference to the foregoing insurance requirements, Professional shall specifically endorse applicable insurance policies as follows: 1. The City of Schertz shall be named as an additional insured with respect to General Liability and Automobile Liability on a separate endorsement. 2. A waiver of subrogation in favor of The City of Schertz shall be contained in the Workers Compensation and all liability policies and must be provided on a separate endorsement. 3. All insurance policies shall be endorsed to the effect that The City of Schertz will receive at least thirty (30) days written notice prior to cancellation or non - renewal of the insurance. 4. All insurance policies, which name The City of Schertz as an additional insured, must be endorsed to read as primary and non - contributory coverage regardless of the application of other insurance. 5. Chapter 1811 of the Texas Insurance Code, Senate Bill 425 82(R) of 2011, states that the above endorsements cannot be on the certificate of insurance. Separate endorsements must be provided for each of the above. 6. All insurance policies shall be endorsed to require the insurer to immediately notify The City of Schertz of any material change in the insurance coverage. 7. All liability policies shall contain no cross liability exclusions or insured versus insured restrictions. 8. Required limits may be satisfied by any combination of primary and umbrella liability insurances. 9. Professional may maintain reasonable and customary deductibles, subject to approval by The City of Schertz. 10. Insurance must be purchased from insurers having a minimum AmBest rating of B +. 11. All insurance must be written on forms filed with and approved by the Texas Department of Insurance. (ACORD 25 2010/05). Coverage must be written on an occurrence form. 12. Contractual Liability must be maintained covering the Professionals obligations contained in the contract. Certificates of Insurance shall be prepared and executed by the insurance company or its authorized agent and shall contain provisions representing and warranting all endorsements and insurance coverages according to requirements and instructions contained herein. 13. Upon request, Professional shall furnish The City of Schertz with certified copies of all insurance policies. 14. A valid certificate of insurance verifying each of the coverages required above shall be issued directly to the City of Schertz within ten (10) business days after contract award and prior to starting any work by the successful Professional's insurance agent of record or insurance company. Also, prior to the start of any work and at the same time that the Certificate of Insurance is issued and sent to the City of Schertz, all required endorsements identified in sections A, B, C and D, above shall be sent to the City of Schertz. The certificate of insurance and endorsements shall be sent to: City of Schertz emailed to: nLohnsonpschertz.com Purchasing Department Faxed to: 210 - 619 -1169 1400 Schertz Parkway Schertz, TX 78154 CERTIFICATE Wa LIAM LITY INSURANCE 'AIR Z W gl rq,a "ar �5. fo iHILAL!ABlurll, r _ i' rIIIIti s 9 MEI LLA L Li i•`f"ii'r�@,74'£:Y�rh t�tsx�� {41144 ,L...,r,dfittY 19�Iti�lf [ afklL Mll k t I ra 1LP5- 014n,I �kldtt Itiift � VISMOMEOP 0MRAMOM0 L SfWar3tUal,9.0JUA Nut, N 11PAM40.t0oftmKt o IMM14t C-0behe Jnrtuaq 1, 0,12 nwvt bo compliant left'h hapl 1811, ix, It , C044 ( CjA S anad4edbyyexas II f, Scheill 1,14a MOMMINO I OAIP, IM OP. hr rlu "1;. of, PELMMO IN 0 't wa 11 I H,r tt ! AGOORDANCKWITIN 111 M"OVIOMM& Schea?,U 78154 Mtn: Ptlroba55in D Pil, ISMS I 1 r =Ii SIONATUIRE REGU Ht -FCC: 10K.20,10 AGOAD CORPMATIOM, III rath r "U AG0RD 124 f261 (M 5) Tha AMID n amb and togo, two, toolaurod rrinl s 0 A00111,11 '" � �=` MEN m� $1 � 1 d ilQi�i i1P it #tiQ f' m . $ (instructions for completing and submitting ocertificate to the City of Complete the certificate of insurance with the information listed below: AJ Certificate of Insurance date B\ Producer (insurance Agency) Information —complete norna, addreee, telephone information, &mrnoi| address. C) |DSun8d"S (insurance Policy Holder) Information — complete name & address information []\ Insurer (name/names of insurance company) **(Rememberthe city requires all insurance companies to be Authorized to do business in the State of Texas be rated by A.M. Best with a rating of B+ (or better) Class V| (or higher) Orotherwise be acceptable tOthe City if not rated byA.M. B88U E) NA|C # (National /\aaooiaUun of Insurance Cornnniaaiungra. a #1hat is assigned by the State to all insurance companies) F) Insurer letter represents which insurance company provides which type of coverage from D G) General Liability Insurance Policy — must have Gn(x)in box. Also, ^[}cCurnenC8'' type policy — must have @n (x) iD the box (occurrence policy preferred but claims made policy can b8 accepted with special approval) H) This S8C1iOn Sh8|| be filled in with "`/" for yes under Additional Insured for all COv8r80eS, except for Professional Liability and Workers' Compensation. There shall also be a "Y" for yes under all coverages for subrogation waived. |\ Automobile Liability |DSU[8nCe — ODUSi be checked for Any Auto, All Owned AUiOS' Hired AUiOS J) Umbrella Coverage — must be checked in this section and by occurrence whenever it is required by written contract and in accordance with the contract value. K\ Worker's Compensation and Employers Liability Insurance — information must be completed in this section Of the certificate Of insurance form (if 8pp|iC@b|8}. L\ Builder's Risk Po|icy — forconetruotion projects as designated by the City of8chertz. Professional Liability Coverage —for professional services if required by the City ofGohertz. M) |DGu[8OCe Policy #'s N) Insurance policy effective dates (always check for current dates) 0\ Insurance Policy limits (See Insurance Requirements Checklist) P\ This section is to list projects, dates of projects, or |nooUon of project. Endorsements to the insurance policy(ies) must be provided separately and not in this section. The following endorsements are required by the City ufGohurtz. (1) Adding the City of Schertz as an additional insured. The "additional insured" endorsement is not required for professional liability and workers compensation insurance; and (2) Waiver ofSubrogation (3) Primary and Non-Contributory (4) C8nC8||81iOn Notice {J\ City Of8nhertz'n n8rn8 and address information must be |iSU3d in this section F|\ Notice of cancellation, non-renewal, or material change to the insurance policy(ies) must be provided to the City of Schertz in accordance with a cancellation notice endorsement to the policy and/or per the policy provisions based on the endorsement adding the city as an additional insured. (Sec. 1811.155, Tex. Ins. Code) 8\ The certificate must be signed by the Authorized Agent in this section of the certificate form. Exhibit "C" Evidence of Insurance City Council Meeting: Department: Subject: BACKGROUND Crime Victim Liaison Agenda No. 7 CITY COUNCIL MEMORANDUM March 24, 2015 Police Department Ordinance No. 1.5- T -1.1- Budget Adjustment Ordinance to fund the Crime Victim Liaison and the Communication Shift Supervisor positions. First Reading Texas Code of Criminal Procedure Chapter 56 governs the rights of crime victims. Article 56.04 of this chapter requires each law enforcement agency to designate one person to serve as the agency's crime victim liaison to ensure that a crime victim is afforded certain rights granted under Chapter 56 of the Texas Code of Criminal Procedure. The Police Department wishes to enter into an agreement with the cities of Cibolo and Live Oak to share the costs associated with hiring a crime victim liaison. To do so, the City would need to amend the adopted 2014 -2015 budget to authorize the expenditures associated with funding the new position and to increase revenue to reflect Cibolo's and Live Oak's contributions for the new position. Communications Supervisor The Police Department Communication Center is responsible for the emergency communications for all Schertz and Cibolo Public Safety agencies. This Center is in operation 24 hours per day, every day of the year. Currently the Communication Center has positions for three (3) supervisors and twelve (12) communication officers. However, there are currently two (2) openings. Often the Center is staffed with less than the desired minimums and without on -duty supervisors. City staff has identified the need to add a communications supervisor position to provide the appropriate staff coverage to better meet the demands of the City. Hiring an additional communications supervisor will help the City get closer to reaching the minimum number of 3 dispatchers on duty at all times as requested by Fire and EMS during the 2012/13 Budget. Goal The addition of two civilian positions in the Police Department Budget Crime Victim Liaison Create a fulltime position of crime victim liaison. Adding this position will allow the City to comply with Article 56.04 of the Texas Code of Criminal Procedure on a cost sharing basis with Cibolo and Live Oak. Cibolo and Live Oak will each contribute annually $25,000 for sharing the services of the crime victim liaison. Communications Supervisor Create an additional communications supervisor position. Adding this position will allow the Police Department to establish four (4) supervised shifts and provide more effective scheduling and supervision. Community Benefit The community benefits by ensuring (i) specific rights are afforded to crime victims and (ii) more communication officers are on -duty with better supervision. Summary of Recommended Action Recommendation that Ordinance 15 -T -11 be approved on first reading. FISCAL IMPACT Crime Victim Liaison Increase the Budget to authorize $12,500 for the mid -year funding of the crime victim liaison position in the General Fund. Increase revenue to recognize Cibolo's and Live Oak's contributions totaling $12,500 for the current fiscal year. The impact for future year(s) includes the cost of the program expected to be just over $75,000. The cities of Cibolo and Live Oak will each contribute $25,000 annually. Schertz will have ownership of all equipment. Communications Supervisor There is no fiscal impact for the communication supervisor in this budget year. There are funds available due to unfilled openings. To help offset the cost of the additional position, the City of Cibolo increased their payment for dispatch services by $26,695 annually. The weighted salary for a Communication Supervisor is $51,863. The net fiscal impact beginning the next budget year would be $25,168. RECOMMENDATION Approval of Ordinance No. 15 -T -11 first reading. ATTACHMENT(S) Ordinance No. 15 -T -11 AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING A BUDGET ADJUSTMENT TO FUND THE CRIME VICTIM LIAISON AND THE COMMUNICATION SHIFT SUPERVISOR; REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT WITH THIS ORDINANCE; AND PROVIDING AN EFFECTIVE DATE WHEREAS, pursuant to Ordinance 14-T-42, the City of Schertz (the "City") adopted the budget for the City for the fiscal year 2014-2015 (the "Budge ), which provides funding for the City's operations throughout the 2014-2015 fiscal year; and WHEREAS, the City needs to increase the Budget to authorize expenditures of $12,500 for the mid-year funding of the Crime Victim Liaison position in the General Fund; and WHEREAS, the City needs to increase revenue to recognize Cibolo's and Live Oak's contribution toward this position as laid out in the Interlocal agreement of $12,500; and WHEARAS, the City will use the current personnel budget for the Communication Shift Supervisor; and WHEREAS, City staff recommends that the City Council of the City adjust the Budget and approve the additional revenue and expense for the Crime Victim Liaison position and authorize the additional Communications Shift Supervisor; and WHEREAS, the City Council of the City has determined that it is in the best interest of the City to adjust the Budget and approve the budget adjustment for the General Fund for the Crime Victim Liaison position, as more fully set forth in this Ordinance. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS: Section 1. The City shall adjust the Budget by $12,500 for the Crime Victim Liaison position and authorize an additional Communication Shift Supervisor. Section 2. The City shall recognize the additional $12,500 in revenue from the interlocal agreement with the City of Cibolo and the City of Live Oak to help fund the Crime Victim Liaison. Section 3. The recitals contained in the preamble hereof are hereby found to be true, and such recitals are hereby made a part of this Ordinance for all purposes and are adopted as a part of the judgment and findings of the Council. Section 4. All ordinances and codes, or parts thereof, which are in conflict or inconsistent with any provision of this Ordinance are hereby repealed to the extent of such conflict, and the provisions of this Ordinance shall be and remain controlling as to the matters resolved herein. Section 5. This Ordinance shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. Section 6. If any provision of this Ordinance or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this Ordinance and the application of such provision to other persons and circumstances shall nevertheless be valid, and the City hereby declares that this Ordinance would have been enacted without such invalid provision. Section 7. It is officially found, determined, and declared that the meeting at which this Ordinance is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Ordinance, was given, all as required by Chapter 551, as amended, Texas Government Code. Section 8. This Ordinance shall be effective upon the date of final adoption hereof and any publication required by law. PASSED ON FIRST READING, the 24th day of March 2015. PASSED, APPROVED and ADOPTED ON SECOND READING, the day of 52015. CITY OF SCHERTZ, TEXAS Michael R. Carpenter, Mayor Brenda Dennis, City Secretary (CITY SEAL) 50558021.1 - 2 - I_►!i_I_ :_M M :?-A k I pill M DATE: March 10, 2015 TO: John Kessel, City Manager FROM: Colin Sherman, ED Specialist, Schertz Economic Development Corporation RE: Reimbursement per the City's Development Agreement with Caterpillar In October 2010, the City approved an Agreement with Caterpillar which established a performance -based tax incentive to develop their multi - phased manufacturing facility. In consideration of Caterpillar's investment, Caterpillar is eligible to receive an annual reimbursement of up to 75% of the personal property ad valorem taxes paid for each phase of the project for a period of eight years. In December 2013, the Agreement was amended to allow Caterpillar to earn the incentive for Year One of Phase 1 in Year Two. On February 27th, 2014, Caterpillar reported its compliance to both the Agreement and the Amendment. As result of Caterpillar's compliance, they have earned a total reimbursement of $338,639.18 for the 2012 and 2013 tax years, reported below. 2012 Total AV Value $ 36,599,711.00 25% City $ 24,307.28 75% PP Reimbursement* $ 72,921.83 100% RP City $ 85,732.85 Total AV Tax Payment $ 182,961.96 2013 Total AV Value $ 106,028,349.00 25% City $ 88,572.45 75% PP Reimbursement* $ 265,717.36 100% RP City $ 173,095.20 Total AV Tax Payment $ 527,385.01 *Reimbursement only on Personal Property AV Tax Page 1 of 2 For the 2014 tax year Caterpillar reported its compliance to the Agreement on February 10th, 2015. As result of Caterpillar's compliance, they have earned a total reimbursement of $466,059.39 for the 2014 tax year. 2014 Total AV Value 25% City 1. 75% PP Reimbursement* 100% RP City Total AV Tax Payment *Reimbursement only on Personal Property AV Tax Page 2 of 2 $ 124,932,150.00 $ 155,353.13 $ 466,059.39 $ 173,593.00 $ 795,005.52 I_►!i_I_ :_M M :?-A k I pill M DATE: March 10, 2015 TO: John Kessel, City Manager FROM: Colin Sherman, ED Specialist, Schertz Economic Development Corporation RE: Reimbursement per the City's Development Agreement with Capital Group In August 2010, the City approved an Agreement with Capital Group which established a performance -based tax incentive to develop their data center facility. In consideration of Capital Group's investment, Capital Group is eligible to receive an annual reimbursement of up to 75% of the real and personal property ad valorem taxes paid for a period of eight years. On February 5th, 2014, Capital Group reported its compliance to the Agreement. As result of Capital Group's compliance, the company earned a total reimbursement of $140,196.31 for the 2013 tax year. 2013 Total AV Value $ 37,581,105.00 25% City $ 46,732.10 75% Reimbursement $ 140,1.96.31. Total AV Tax Payment $ 186,928.41 For the 2014 tax year Capital Group reported its compliance to the Agreement on February 6th 2015. As result of Capital Group's compliance, they have earned a total reimbursement of the $105,692.09 for the 2014 tax year. 2014 Total AV Value 25% City 75% Reimbursement $ 28,331,884.00 $ 35,230.70 $ 105,692.09 Total AV Tax Payment $ 140,923.00