The URL can be used to link to this page

21-R-23 - CAFR for FY 2019-20A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING THE APPROVAL OF THE COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR FISCAL YEAR 2019-20, AND OTHER MATTERS IN CONNECTION THEREWITH AINAIWO 111211 WON 1611,2411NEWS 0 slot-isr.) 0 fa L"LWgi $11 tq ra Ed I I ra ist" m 8 rml oim a we is MW. I wawwwl VMEREAS, the City Council has determined that it is in the best interest of the City to i,pprove the Comprehensive Annual Financial Report for Fiscal Year 2019-20. Section 5. If any provision of this Resolution or the application thereof to any person • circumstance shall be held to be invalid, the remainder ♦ 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 is-zkt• tcf i %4kc-a-*tk-e*f —W-'1krA matter of the public business to be considered at such meeting, including this Resolution, was given, all as required • Chapter 5 5 1, Texas Government Code, as amended. i�• -me mrommmmsmn�o -, • i mmoscaffmi �f u acn# M- no I W4 Rafoitierr f,M—ayor- Cks 50506221.1 - 2 - Honorable Mayor and Members • the City Council City of Schertz, Texas RUTILL0, BROWN HILL, L,L.P, 0 pbhcpax*M We have audited the financial statements of the City of Schertz, Texas (the "City") as of and for the year ended September 30, 2020 and have issued our report thereon dated March 19, 2021. Professional standards require that we advise you of the following matters relating to our audit. 191401;V2 LOIN Planned Scope and Timing of the Audit F0jr6r*%rSffT4M'1Mff M WHOMi Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, and, as appropriate, our firm have complied with relevant ethical requirements regarding independence. i As a part of the engagement we assisted in preparing the financial statements, related notes to t financial statements, and the schedule of expenditures of federal awards of the City in conformity with U. generally accepted accounting principles and Uniform Guidance. These nonaudit services do not constitute audit under Government Auditing Standards and such services were not conducted in accordance wi Government Auditing Standards. I OFFICE LOCATTIONS A I CPA TEXAS I Waco i Temple Hillsboro Houston NEW MEXICO Albuquerque GAQC Member Significant Accounting Policies I a We encountered no significant difficulties in dealing with management relating to the performance of the audit. Uncorrected and Corrected Misstatements For purposes of this letter, professional standards define a disagreement with ma�agement a� matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditi matter, which could be significant to the City's financial statements or the auditor's report. No su disagreements arose during the course of the audit. I 1'OUJ!MjiF1 LPIIJALLAAL We have requested certain written representations from management, which are included in t management representation letter dated March 19, 2021. 1 In some cases, management may decide to consult with other accountants about auditing arlMs accounting matters. Management informed us that, and to our knowledge, there were no consultations wil other accountants regarding auditing and accounting matters. i 0 Restriction on Use �- I a-mm- IN-MaNalm" =-w- IN -9 M- PRO, - I. T T ME IYAr. I M ENZ 101 M I I lqJ I If L-16 EVIABIZOS I I IIW-3 ILDIN 116 M IPIM f17,ARFr4fMll',W I IV&M lIZA&IRRIA MIN MIN ill L-710 M IVIEW I- -?a,4 WMQ= MWAI-mr-M-OpAll 06cm Independent Auditor's Report • Compliance for Each Major Federal Program, and Report on Internal Control Over Independent Auditor's 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 ....................................................... 3 - 4 f ■ • PATTILLO, BROWN & HILL, L.L.P. 401 VIcel, State Highway 6 Mco, Texas 76710 254,772,49011 pbhcpa.com Pa MA M b will's �, Wig *J-1i V-11i, 116104114 AW MR ANA1411011111110i oM 9L1;J No LNOI* G NIF-1,1416161 � #01-1 1 %1014LAIP111, IM14�ffilaimi�VZILKC�tivftf#-V-IYA!�!IAY Honorable Mayor and Members Of the City Council and Citizens City of Schertz, Texas We have audited the City of Schertz, Texas' (the "City") compliance with the types of complian requirements described in the U.S. Office of Management and Budget (OMB) Compliance Supplement th could have a direct and material effect on each of the City's major federal programs for the year end September 30, 2020. The City's major federal programs are identified in the summary of auditor's resull section of the accompanying schedule of findings and questioned costs. I Management's Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs. We believe that our audit provides a reasonable basis for our opinion • compliance for each maj federal program. However, our audit does not provide a legal determination of the City's compliance. In our opinion, the City of Schertz, Texas, complied, in all material respects, with the types compliance requirements referred to above that could have a direct and material effect on each of its maj federal programs for the year ended September 30, 2020. OFFICE LOCAMONS AICPA 04 TEXAS I Waco I Temple ' Hillsboro I Houston t4l" NEWMEXICO 1 Albuquerque GAQC Member Our consideration • internal control over compliance 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 compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. IR ort on Schedule of Exoenditures of Federal Awards The purpose of this report • internal control over compliance is solely to describe the scope ► OLD testing of internal control over compliance and the results of that testing based on the requirements of t Uniform Guidance. Accordingly, this report is not suitable for any other purpose. I <71 ; P0�4+jj'oj V-I�k4owrn I � �- M IQFYOINIMIY44 M PAT'nLLO, BROWN & HILL, L.L,P. 401 West State Highway 6 Waco, Texas 76710 254,772,49011 p1shcpa.com F-1011OX610940 W 0WOU I alai* 14-10 1119 44-Y-11-14:416FAY a poll 48111419 'Qu km 1:1 :A 4 A161 N L 14 I'M 9 �IVAIKASJR 07-12 51313 s 1; • U. • �-d FUT 1 8 6 " 0 a I UNIVALWAS41,1101 141031 LOH UA • 11 6"R in planning and performing our audit of the financial statements, We considered the City's internal control over financial reporting (internal control) as a basis for determining 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 the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. Our consideration of internal control was for the limited purpose described in the first paragraph this section and was not designed to identify all deficiencies in internal control that might be mated weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify a deficiencies in internal control that we consider to be material weaknesses. However, material weakness may exist that have not been identified. I OFFICE LOCAMONS TEXAS I Waco Temple Hillsborro 1 Houston AICPA NEWMEXICO AlbUquerque GAQC Member As part of obtaining reasonable assurance about whether the City's financial statements are free of material misstatements, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective if 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. 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 City'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. OM � OFUR-NURNMIYON rd CITY OF SCHERTZ, TEXAS ViCHEDULE • EXPENDITURES • FEDERAL AWARDS I Lei VsH I wd;F-11 LMQ 0 1 P1.1 Total U.S. Department of 3ustice 82,528 Passed through the Texas Department of Emergency Management: COVID-19 - Coronavirus Relief Fund 21.019 451 64,521 COVID-19 - Coronavirus Relief Fund 21.019 452 1,777 301 j_ Total Texas Department of Emergency Management __1 „841 822 Passed through Bexar County, Texas: COVID-19 - Coronavirus Relief Fund 21.019 N/A _l13 775 Total Bexar County, Texas 113 7 75 Total CFDA Number 21.019 _JL9�55 597 Total U.S. Department of Treasury 1955597 Institute of Museum and U �lbrar -Services Passed through the Texas State Library and Archives Commission: Interlibrary Loan Program (ILL) 45.310 N/A l3 509 Total Texas State Library and Archives Commission 13 509 Total Institute of Museum and Library Services L3, "M Passed through Texas Department of Emergency Management: Disaster Grants - Public Assistance - TIFMAS 97.036 N/A 7_2j33 Total Texas Department of Emergency Management .... 72L533 I Ms. *t - =-j[ a, Security Total Expenditures of Federal Awards $__2,.124 ,167 0 • Riffff UPIT" OM J-T--j IpK#I AEXKK*I 1] 0 It 64, M raM01111141116" • The City has not elected to use the 10% de minimis indirect cost rate as allowed in the Uniform Guidance, Section 414. t11:44-1 '0 CITY OF SCHERTZ, TEXAS r • r r. . r r FOR THE YEAR ENDED SEPTEMBER 30, 2020 a r• -+ 0 Unmodified No None reported No No None reported Unmodified None .IID -19 - Coronavirus Relief Fund i� 0 CITY OF SCHERTZ, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020 OFFICIALS ISSUING REPORT James M. Browne City Manager James Walters Director of Finance CITY OF SCHERTZ, TEXAS FOR THE YEAR ENDED SEPTEMBER 30, 2020 TABLE OF CONTENTS INTRODUCTORY SECTION Page Number Letterof Transmittal ...................................................................... ............................... i - iv CityOfficials .................................................................................. ............................... v OrganizationalChart ...................................................................... ............................... vi Certificate of Achievement .............................................................. ............................... vii FINANCIAL SECTION Independent Auditor's Report .......................................................... ............................... 1 - 3 Management Discussion and Analysis ............................................... ............................... 4- 12 Basic Financial Statements Government -Wide Financial Statements: Statement of Net Position .......................................................... ............................... 13- 14 Statement of Activities .............................................................. ............................... 15- 16 Fund Financial Statements: Governmental Funds BalanceSheet ....................................................................... ............................... 17- 18 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ................................ ............................... 19 Statement of Revenues, Expenditures, and Changes in Fund Balances .................................................. ............................... 20-21 Reconciliation of Revenues, Expenditures and Changes In Fund Balances - Governmental Funds to the Statement of Activities ....................................................... ............................... 22 Proprietary Funds Statement of Net Position ....................................................... ............................... 23-24 Statement of Revenues, Expenses, and Changes in Fund Net Position .............................................. ............................... 25 Statement of Cash Flows ........................................................ ............................... 26-27 Notes to the Financial Statements .............................................. ............................... 28- 54 Required Supplementary Information Schedule of Revenues, Expenditures, and Changes in Fund Balance - General Fund - Budget and Actual ...................................................... 55 56 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Economic Development Corporation - Budget and Actual ....................... 57 NotestoBudgetarySchedu|es ----------------------------. 58 Schedule of Changes in Net Pension Uabi|ityandKe|atedRabos ----------------------------- 59-60 Schedule of Pension Contributions ................................................................................ 61-62 Schodu|eofChangea - TMRSOtherPost-Emp|oymentBenofit Uabi|ityandRe|atadRatios ----------------------------- 63 Schedu|eofChangea - CityRetreeHealthOtherPost-Employment Benefit Liability and Related Ratioa-------------------------. 64 Combining and Individual Fund Statements and Schedules ComparabveBa|enceSheeto - Genera| Fund---------------------' 65 Comparative Schedules ofRevenues, Expenditures, and Changes in Fund Balance - General Fund ................................................................................. 66 Comparative Balance Sheets - Economic Development Corporation ----------- 67 Comparative Schedules of Revenues, Expenditures, and Changes in Fund Balance - Economic Development Corporation ................................................. 68 ComparabveBa|anusSheeto - DabtSeniceFund -------------------. 69 Schedule nf Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - Debt Service Fund ......................................... 70 Comparative Balance Sheets -Capital PnjectsFund ------------------ 71 Comparative Schedules of Revenues, Expenditures, and Changes in Fund Ba|ance - CapiLa| ProjectsFund -----------------------. 72 Combining Balance Sheet -Nonmajor Governmental Funds ............................................ 73-74 Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances - NonmajorGovernmenta| Funds------------.. 75-76 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - Hotel Occupancy Fund ................................... 77 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - Park Fund-----------------.. 78 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - Tree Mitigation Fund ...................................... 79 Schedule of Revenues, Expenditures and Changes in Fund Balance -Traaaury Forfeitures Fund-------------------- 80 Schedule of Revenues, Expenditures, and Changes Schedule uf Revenues, Expenditures, and Changes Schedule ofRevenues, Expenditures and Changes in Fund Balance - Budget and Actual - Library Advisory Board Fund ........................... 83 Schedule ofRevenues, Expenditures and Changes in Fund Balance - Budget and Actual - Historical Committee Fund---------- 84 Schedule uf Revenues, Expenditures, and Changes STATISTICAL SECTION NetPositionby[onnponent -------------------------- 1 86-87 ChangainNatPosihon ---------------------------- 2 88-91 Fund Balances uf Governmental Funds .............................................................. 3 92-93 Changes in Fund Balances, Governmental Funds----------------. 4 94-95 TaxRevenuebySource - Governmenta|Funds ----------------' 5 96-97 Total Water and Sewer Consumption and Rates .................................................. 6 98 Rindpa|VVaterandSewer[onsumers --------------------- 7 99 DirectandOvedappngPropertyTaxRates ------------------.. 8 100 Phndpa|PropertyTaxpayers -------------------------. g 101 PropertyTaxLevesandCo|bctions ---------------------- 10 102 Taxable Assessed Value ................................ ----------.................... 11 103-1O4 RaUosofOutstandingDettbyType ---------------------- 12 105'106 RaUosofGenera|BondedDebtOutstanding ------------------. 13 107 DinectandOvedappngGovernnnenta|ActivibesDebt -------------- 14 108 DebtMarginInformaton ---------------------------. 15 109 P|edgedRevenuoCoverage --------------------- ----- 16 110 DemographioandEconunohcStatsbcs ---------------------. 17 111 Top Ten Principal Employers ................................ ----------.............. 18 112 FuU-Urno Equivalent City Governmental Ennp|oyersbyFundion ---------. 10 113- 114 Operating Indicators by Function/Program ......................................................... 20 115-118 Capital Asset Statistics by Fundion/Program------------------ 21 119- 120 THIS PAGE LEFT BLANK INTENTIONALLY INTRODUCTORY SECTION THIS PAGE LEFT BLANK INTENTIONALLY s March 19, 2021 To the Honorable Mayor, City Council, and the Citizens 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, 2020. 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 Pattillo, Brown & Hill, LLP 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, 2020, 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 unmodified opinion that the City of Schertz's financial statements for the fiscal year ended September 30, 2020, 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. 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 41,199 in 2019 according to the US Census Bureau. 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 November 30, 1972. Policymaking and legislative authority are vested in a City Council consisting of the Mayor and seven at -large 1400 Schertz Parkway Schertz, Texas 78154 210.619.1000 scher:z.,.oyrf a INEMMANE, couneilmembers. 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 three -year staggered terms, with two council members elected every three years and then three council members elected the final three years in the cycle. The mayor is elected to serve a three -year term. The City of Schertz provides a full range of services, including police and fire protection, EMS services, library services, the construction and maintenance of streets, recreational facilities, cultural events, and 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 in early August. The council then holds public hearings and community meetings on the proposed budget and to adopt a final budget by September 30`i'. The fiscal year for Schertz is from October 1 through September 30. The appropriated budget is prepared by each department (e.g. police). The City Manager 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 55 -56 as part of the required supplementary information. Factors AffectinLy Financial Condition The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City of Schertz operates. Local economy. Economic growth in Schertz remained strong in 2020. The surrounding metro area saw some contractions evidenced by the Federal Reserve Bank of Dallas reporting the San Antonio Business -Cycle Index decreased 4.33% year over year for September 2020. This Index potentially indicates a new period of economic contraction around the state. As of September 2020, the unemployment rate for Texas was 8.3% and several metro areas including Austin, Dallas -Fort Worth, and San Antonio, are below the state average. Schertz in particular had an unemployment rate of 6.2 percent during this time. Despite these indicators for the surrounding area, the City of Schertz realized a 15.3% increase year - over -year in sales tax collections during the fiscal year. Despite the pandemic, Schertz' retail outlets and restaurants remained open and doing busines during the pandemic. The businesses in the industrial complex also remained open, many of whom reworked their product lines to assist with creations of masks and other goods needed during the pandemic. Further showcasing Schertz' economic resilience, it also saw a diverse range of new products developed its real estate and land markets with approximately 270,000 square feet of new commercial and industrial space. Nexus Medical's new facility located on Schertz Parkway. The 36,450 sf building a project is host to 100 employees. Other new facilities included Casa Mechanical's new facility (71,255 sf) located on 7770 FM 482 and Ryder Truck's facility expansion (19,226 st) on 9993 Doerr Ln. The industrial vacancy rate decreased from 9.4% to 9.0% from the previous quarter. Long -term financial planning. The community approved bond propositions in November 2010 for quality of life projects which included an aquatics facility, improvements to the baseball fields and soccer fields, building a new animal adoption facility, and improvements to Main Street. The only remaining project are the Main Street improvements. 1400 Schertz Parkway Schertz, Texas 78154 210.619.1000 scheitz,co COMMUNITY ("THERTZ I SERVICE OPPORTUNITY In November 2015, the City placed 2 bond propositions before the voters totaling $15 million. $7 million was for FM roadways which the City will partner with the Texas Department of Transportation, who will provide matching funds, and $8 million for a new Fire Station located in the southern portion of Schertz. $2 million for the FM roadways have been issued and sent to the Texas Department of Transportation for improvements on FM 1103 as of July 2018. In June 2018, the second $4 million was issued for the Fire Station to begin construction. The fire station was completed in November 2020. Current Year Budget Initiatives. For FY 2020 -21, the City is using the momentum from the previous year and is putting an additional $500,000 into city infrastructure from the General Fund Fund Balance and undergoing a new Comprehensive Land Use Plan. Due to growing needs the City will also hire a Police Captain and Senior Planner. 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. 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. Staff believes these controls help monitor and direct approved expenditures to a level within the budget parameters which directly results in a strong financial performance. Financial Results. Assets and fund balances continue to grow as the City grows and financial results remain strong. While additional debt was issued during the year, Staff closely monitors and plans the amount of issuance to keep steady debt ratios per capita, per revenue, and per operations tax rate to the debt tax rate. Examples of these ratios can be found in the Statistical Section on pages 121, 123, 125, and 127. A more detailed summary of the City's Financial Performance is available in the Management Discussion and Analysis section on page 4. Independent Audit. Every year an independent audit is performed 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 Pattillo, Brown & Hill, LLP. Certified Public Accountants, has been included in this report. Awards and Acknowledizements 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, 2019. This was the 35th 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. 1400 Schertz Parkway Schertz, Texas 78154 210.619.1000 scheitz,co Sri SCHIEPUZ I OCOMMUNITY PPORTUNITY 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 will be 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 conclusion, we would have none of the success we have enjoyed without the assistance of each and every staff member, as well as the support and strategic direction from the Mayor and the City Council during the strategic planning, pre- budget, and budget approval process. Respectfully submitted, W�RkK-- James M. Browne City Manager James P. Walters Finance Director 1400 Schertz Parkway Schertz, Texas 78154 210.619.1000 * schertz.com CITY OF SCHERTZ, TEXAS CITY OFFICIALS MAYOR RALPH GUTIERREZ MAYOR PRO -TEM ROSEMARY SCOTT CITY COUNCIL MARK E. DAVIS SCOTTLARSON MICHAEL DAHLE DAVID SCAGLIOLA ALLISON HEYWARD TIM BROWN CITY MANAGER JAMES M. BROWNE DIRECTOR OF FINANCE JAMES WALTERS CITY ATTORNEY CHARLES ZECH, DENTON, NAVARRO, ROCHA, BERNAL & ZECH, P.C. v Prosecuting ■ City Secretary* Attorney Citizens Mayor & City Council City Manager* 0 Municipal Court City Attorney* Judge Assistant to the Assistant City Assistant City Executive Director City Manager Manager Manager Economic Operations Development Development Deveopment Schertz Economic Public Affairs Police Services Development Corporation Fire Rescue 1= Engineering Parks, Recreation, EMS a"Community Public Works Information Technology Fleet & Facility Is Library Services Geographic Human Resources Information Systems Finance r 0 L Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Schertz Texas For its Comprehensive Annual Financial Report for the Fiscal Year Ended September 30, 2019 olwtj-a� P. A Executive Director /CEO Vii THIS PAGE LEFT BLANK INTENTIONALLY FINANCIAL SECTION THIS PAGE LEFT BLANK INTENTIONALLY V 4 n�l I INDEPENDENT AUDITOR'S REPORT Honorable Mayor and Members of the City Council City of Schertz, Texas Report on the Financial Statements PATTILLO, BROWN & FALL, L.L.P. 401 west state Highway 6 Waco, Texas 76710 254.772.4901 pbhcpa.com 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, Texas, as of and for the year ended September 30, 2020, and the related notes to the financial statements, which collectively comprise the City of Schertz, Texas' basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements The 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 did not audit the financial statements of the Schertz- Seguin Local Government Corporation or the Cibolo Valley Local Government Corporation, which collectively represent 10.0 percent and 11.9 percent, respectively, of the assets and net position of the Water and Sewer Fund, and 9.7 percent and 11.8 percent, respectively, of the assets and net position of the business -type activities. Those statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for Schertz- Seguin Local Government Corporation and Cibolo Valley Local Government Corporation, is based solely on the report of the other auditors. 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. 1 OFFICE LOCATIONS TEXAS I Waco Temple I Hillsboro I Houston NEW MEXICO Albuquerque ilk) GAQC Member Opinions In our opinion, based on our audit and the reports of other auditors, 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 the City of Schertz, Texas, as of September 30, 2020, 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. Report on Summarized Comparative Information We have previously audited the City of Schertz, Texas' fiscal year 2019 financial statements, and we expressed an unmodified audit opinion on those audited financial statements in our report dated March 18, 2020. In our opinion, the summarized comparative information presented herein as of and for the year ended September 30, 2019 is consistent, in all material respects, with the audited financial statements from which it has been derived. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis and required supplementary information, 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. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Schertz, Texas' basic financial statements. The introductory section, combining and individual nonmajor fund financial statements and schedules, 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 and schedules 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 and schedules 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 them. 2 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 19, 2021, on our consideration of the City of Schertz, Texas' internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on 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 the City of Schertz, Texas' internal control over financial reporting and compliance. Pa'4 XOorn � 4A ) L - L Waco, Texas March 19, 2021 3 THIS PAGE LEFT BLANK INTENTIONALLY MANAGEMENT'S DISCUSSION AND ANALYSIS THIS PAGE LEFT BLANK INTENTIONALLY MANAGEMENT'S 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, 2020. 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 and deferred outflows of the City of Schertz exceeded its liabilities and deferred inflows at the close of the most recent fiscal year by $243,392,976 (net position). Of this amount, $34,728,518 (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 $7,756,417. The primary reason for this increase was a decrease in the City's net pension liability of approximately $4.1 million from the prior year. As of the close of the current fiscal year, the City's governmental funds reported combined ending fund balances of $50,993,654, a decrease of $5,840,724 in comparison with the prior year. The primary cause of this decrease was a payment of $3.7 million by the City of Schertz Economic Development Corporation to Schertz 312, LLC related to an economic development performance agreement. At the end of the fiscal year, the combined total of the General Fund assigned and unassigned fund balances was $12,098,536 which is 35.51% of the general fund expenditures not including capital outlay. The fund balance policy is to reserve at least a 26% balance. 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. 4 Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Schertz, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance - related legal requirements. The funds of the City of Schertz can be divided into two categories: governmental and proprietary. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide financial statements. However, unlike the government - wide financial statements, governmental fund financial statements focus on near term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information is useful in evaluating a government's near -term financing requirements. Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government -wide financial statements. By doing so, readers may better understand the long -term impact of the government's near -term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City of Schertz maintains thirteen individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund, the debt service fund, 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 fund 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 funds to account for its water and sewer department and for its emergency medical services department. Proprietary funds provide the same type of information as the government -wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the water and sewer department and for the emergency medical services department, both of which are considered to be major funds of the City of Schertz. 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. 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 and deferred outflows exceeded liabilities and deferred inflows by $243,392,976 at the close of the most recent fiscal year. The largest portion of the City's total net position (68 %) 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. I1 An additional portion of the City's total net position (18 %) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position, $34,728,518, 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. City of Schertz's Net Position Government -Wide Governmental Business -Type Activities Activities Total 2020 2019 2020 2019 2020 2019 Current and other assets $ 62,199,597 $ 62,483,126 $ 54,664,167 $ 55,115,512 $ 116,863,764 $ 117,598,638 Capital assets 144,079,930 143,800,297 92,643,825 86,809,556 236,723,755 230,609,853 Total assets 206,279,527 206,283,423 147,307,992 141,925,068 353,587,519 348,208,491 Deferred outflows of resources 3,267,540 5,026,512 806,262 1,307,526 4,073,802 6,334,038 Current liabilities 12,527,345 8,595,801 5,245,378 4,792,951 17,772,723 13,388,752 Long -term liabilities 73,002,458 81,400,396 20,706,167 23,649,513 93,708,625 105,049,909 Total liabilities 85,529,803 89,996,197 25,951,545 28,442,464 111,481,348 118,438,661 Deferred inflows of resources 2,235,923 434,900 551,074 32,409 2,786,997 467,309 Net position: Net investment in capital assets 88,959,102 89,869,766 75,969,319 68,271,075 164,928,421 158,140,841 Restricted 28,664,438 28,088,355 15,071,599 13,232,638 43,736,037 41,320,993 Unrestricted 4,157,801 2,920,717 30,570,717 33,254,008 34,728,518 36,174,725 Total net position $ 121,781,341 $ 120,878,838 $ 121,611,635 $ 114,757,721 $ 243,392,976 $ 235,636,559 �I The government's net position increased by $7,756,417 during the current fiscal year. Approximately $4.1 million of this increase represents a decrease in the City's net pension liability from the previous year. The following table indicates changes in net position for governmental and business -type activities followed by graphs displaying total revenues and expenses by type: City of Schertz's Changes in Net Position Government-Wide N Governmental Business -Type Activities Activities Total 2020 2019 2020 2019 2020 2019 Revenues: Program revenues: Charges for services $ 5,619,998 $ 5,080,958 $ 35,824,170 $ 33,930,093 $ 41,444,168 $ 39,011,051 Operating grants & contributions 2,113,673 692,042 - - 2,113,673 692,042 Capital contributions 531,096 1,319,793 292,408 1,975,524 823,504 3,295,317 General revenues: Property taxes 19,844,912 19,151,005 - - 19,844,912 19,151,005 Other taxes 17,076,462 15,439,226 - - 17,076,462 15,439,226 Investment earnings 804,674 1,470,258 431,555 855,216 1,236,229 2,325,474 Miscellaneous 767,799 984,257 706,296 267,788 1,474,095 1,252,045 Total revenues 46,758,614 44,137,539 37,254,429 37,028,621 84,013,043 81,166,160 Expenses: General government 10,310,363 6,534,013 - - 10,310,363 6,534,013 Public safety 16,575,191 15,448,886 16,575,191 15,448,886 Public environment 8,825,099 5,495,192 8,825,099 5,495,192 Parks and recreation 3,012,134 3,022,278 3,012,134 3,022,278 Cultural 1,089,564 1,119, 650 1,089,564 1,119, 650 Health 596,288 516,890 596,288 516,890 Administration 3,419,407 3,853,255 3,419,407 3,853,255 Interest and other fees 2,028,065 2,196,180 - - 2,028,065 2,196,180 Water and sewer - - 24,349,219 25,608,390 24,349,219 25,608,390 EMS - 6,051,296 6,529,631 6,051,296 6,529,631 Total expenses 45,856,111 38,186,344 30,400,515 32,138,021 76,256,626 70,324,365 Increase in net position before transfers 902,503 5,951,195 6,853,914 4,890,600 7,756,417 10,841,795 Transfers ( 81,525) 81,525 Change in net position 902,503 5,869,670 6,853,914 4,972,125 7,756,417 10,841,795 Net position - beginning of year 120,878,838 115,009,168 114,757,721 98,368,826 235,636,559 213,377,994 Prior period adjustment 11,416,770 11,416,770 Net position - end of year $ 121,781,341 $ 120,878,838 $ 121,611,635 $ 114,757,721 $ 243,392,976 $ 235,636,559 N TOTAL REVENUES - GOVERNMENT -WIDE $20,000,000 $18,000,000 Cultural Health Administration Interest and $16,000,000 Other Fees $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 Charges for Operating Capital Grants Property Other Taxes Unrestricted Miscellaneous Services Grants and and Taxes Investment Contributions Contributions Earnings ■2020 2019 TOTAL EXPENSES - GOVERNMENT -WIDE $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 General Public Safety Public Parks and Government Environment Recreation • 2020 •2019 8 Cultural Health Administration Interest and Other Fees Sales Tax 37% GENERAL REVENUE BY SOURCE - GOVERNMENTAL ACTIVITIES Franchise Tax Investment Earnings 6% Occupancy 2 Tax... Miscellaneous 3 °1a roperty Tax 51% TOTAL REVENUES AND EXPENSES - BUSINESS -TYPE ACTIVITIES $40,000,000 $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 2020 2019 • Revenues Expenses H� $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 � BUSINESS-TYPE REVENUES AND EXPENSES Water and Sewer Utilities EMS Amsmnues owonopemun Revenues % Capital Contributions and Transfers Expenses Financial Analysis of the Government's Funds As noted earlier, the City nfSchertz 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 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 $50,993,654. Of this total amount, $10,126,057 constitutes unassigned fund balance, which is available for spending at the government's discretion. The remainder offund balance 1s 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 $10,126,057, while total fund balance was $14,897,460, a decrease of $2,568,208 from the prior year. Overall, the decrease was caused by a large budgeted transfer out for capital projects, but the fund also experienced increases in property and sales tax revenues in spite of the COVID-19 pandemic. As a measure of the general fund's liquidity, it may be useful to compare both unassigned fund balance and total fund balance Lo total fund expenditures. Unassigned fund balance represents 35.5196nf total general fund expenditures, not including capital outlay. The debt service fund has a total fund balance of $785,919, all of which is restricted for the payment of debt service. The net decrease in fund balance during the current year in the debt service fund was $216,307. This decrease was due to regular principal and interest payments on long-term debt exceeding interest and sinking property tax revenue during the year. Over time, however, the debt service fund has sufficient cash and equivalents on hand to remain liquid. The capital projects fund has a total fund balance of $10,137,558, a decrease of $3,050,113. This decrease was caused by the expenditure of accumulated funds for planned capital projects, which were supplemented by amounts transferred from the general and Economic Development Corporation funds. 10 The Economic Development Fund presents the activities of the Schertz Economic Development Corporation (the "EDC "), which promotes economic development activities using a portion of the City's sales tax revenue. At year end, the EDC fund reported an ending fund balance of $21,018,626, which is a decrease of $758,630 compared to the prior year. The primary cause of this change was a planned use of fund balance that was less than the $3 million budgeted. 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 $29,368,969 and those for the Schertz EMS fund amounted to $1,201,748, which are 124% and 20% of fund operating costs, respectively. General Fund Budgetary Highlights The General Fund expenditures were $2,129,055 less than the $31,816,758 budget. This was the result of cost savings across most of the General Fund due to decreased demand for services. Generally, activities citywide decreased because of the COVID -19 pandemic beginning in March 2020. Revenues were $592,075 more than budgeted, primarily due to increased property and sales tax revenues over the budgeted amount. Overall, ending fund balance in the general fund was $2,326,686 higher than budgeted. CAPITAL ASSET AND DEBT ADMINISTRATION Capita/ assets. The City's investment in capital assets for its governmental and business -type activities as of September 30, 2020, amounts to $236,723,755 (net of accumulated depreciation). Developers contributed $823,504 in infrastructure during the year. The City also has several projects in progress from voter approved bonds. Significant capital asset activity for the year included continued construction on the Corbett Elevated Tank project for $2.5 million, various sewer system improvements amounting to $3.6 million, and an additional $1 million spent on the new Fire Station 3. Additional information on the City's capital assets can be found in the noes to the basic financial statements. K07► [elk 4 7u0 7 ::31 At the end of the current fiscal year, the City of Schertz had total long -term debt outstanding of $79,905,573. 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. Governmental Business -Type Activities Activities Total 2020 2019 2020 2019 2020 2019 Land $ 8,074,199 $ 8,073,199 $ 1,844,488 $ 1,696,942 $ 9,918,687 $ 9,770,141 Water rights - - 70,245 70,245 70,245 70,245 Buildings and improvements 44,447,749 46,367,441 3,635,532 5,489,184 48,083,281 51,856,625 Machinery, equipment, and 1,216,809 1,562,538 TOTALS $ 63,355,055 $ 68,675,395 $ 16,550,518 $ 18,642,168 $ - vehicles 14,552,416 12,958,097 5,976,040 6,007,550 20,528,456 18,965,647 Infrastructure 119,945,442 117,414,346 100,588,293 100,295,885 220,533,735 217,710,231 Construction in progress 24,826,910 21,045,668 17,266,273 9,248,439 42,093,183 30,294,107 Accumulated depreciation ( 67,766,786) ( 62,058,454) ( 36,737,046) ( 35,998,689} ( 104,503,832) 1_9 57 14 3) TOTALS $ 144,079,930 $ 143,800,297 $ 92,643,825 $ 86,809,556 $ 236,723,755 $ 230,609,853 Significant capital asset activity for the year included continued construction on the Corbett Elevated Tank project for $2.5 million, various sewer system improvements amounting to $3.6 million, and an additional $1 million spent on the new Fire Station 3. Additional information on the City's capital assets can be found in the noes to the basic financial statements. K07► [elk 4 7u0 7 ::31 At the end of the current fiscal year, the City of Schertz had total long -term debt outstanding of $79,905,573. 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. EIFI Governmental Business -Type Activities Activities Total 2020 2019 2020 2019 2020 2019 General obligation bonds $ 44,620,000 $ 48,320,000 $ 3,685,000 $ 4,445,000 $ 48,305,000 $ 52,765,000 Certificates of obligation 15,235,000 16,235,000 11,505,000 12,330,000 26,740,000 28,565,000 Tax notes and leases 362,134 555,699 282,468 659,421 644,602 1,215,120 Premium on bonds 2,170,381 2,338,297 828,781 871,608 2,999,162 3,209,905 Compensated absences 967,540 1,226,399 249,269 336,139 1,216,809 1,562,538 TOTALS $ 63,355,055 $ 68,675,395 $ 16,550,518 $ 18,642,168 $ 79,905,573 $ 87,317,563 Total debt decreased compared to the prior year due to continued payment on existing debt without any additional issuances. Additional information on the City's long -term debt can be found in the notes to the basic financial statements. EIFI 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 $14.2 million. The City of Schertz has appropriated $1.1 million of this amount for spending in the 2021 fiscal year budget in accordance to the City's fund balance policy. The approved tax rate decreased from $0.5146 to $0.5087 per $100 of valuation. The City also considered the effects of the ongoing COVID -19 pandemic. Although the pandemic has resulted in an economic downturn and presents significant future uncertainty, the City's property tax revenues were not significantly affected, as those tax revenues were due in January before the pandemic began. 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. i Vj THIS PAGE LEFT BLANK INTENTIONALLY BASIC FINANCIAL STATEMENTS CITY OF SCHERTZ, TEXAS STATEMENT OF NET POSITION SEPTEMBER 30, 2020 The accompanying notes are an integral part of these financial statements. 13 Primary Government Governmental Business -Type Activities Activities Total ASSETS Current assets: Cash and cash equivalents $ 48,999,891 $ 13,084,856 $ 62,084,747 Investments 4,677,758 1,139,981 5,817,739 Receivables, net of allowances: Taxes 3,332,944 - 3,332,944 Accounts and other 3,420,493 6,538,364 9,958,857 Service concession arrangement receivable 90,909 - 90,909 Accrued interest - 6,324 6,324 Inventories 99,871 236,682 336,553 Prepaids 14,916 2,311 17,227 Internal balances ( 16,139) 16,139 - Total Current Assets 60,620,643 21,024,657 81,645,300 Noncurrent assets: Restricted assets: Cash and cash equivalents 867,708 17,504,886 18,372,594 Investments - 1,831,586 1,831,586 Service concession arrangement receivable 711,246 - 711,246 Investment in joint venture - 14,303,038 14,303,038 Capital assets: Land 8,074,199 1,844,488 9,918,687 Water rights - 70,245 70,245 Buildings and improvements 44,447,749 3,635,532 48,083,281 Equipment and vehicles 14,552,416 5,976,040 20,528,456 Infrastructure 119,945,442 100,588,293 220,533,735 Construction in progress 24,826,910 17,266,273 42,093,183 Accumulated depreciation ( 67,766,786) ( 36,737,046) ( 104,503,832) Total Noncurrent Assets 145,658,884 126,283,335 271,942,219 Total Assets 206,279,527 147,307,992 353,587,519 DEFERRED OUTFLOWS OF RESOURCES Deferred loss on debt refunding 591,766 40,743 632,509 Deferred OPEB related outflows 464,967 133,129 598,096 Deferred pension related outflows 2,210,807 632,390 2,843,197 Total Deferred Outflows of Resources 3,267,540 806,262 4,073,802 LIABILITIES Current liabilities: Accounts payable 5,446,713 3,491,409 8,938,122 Accrued liabilities 1,209,493 321,460 1,530,953 Retainage payable 111,135 332,514 443,649 Due to other governments 123,911 - 123,911 Unearned revenue 39,159 444,762 483,921 Accrued interest payable 328,322 95,042 423,364 Customer deposits 7,040 560,191 567,231 Total Current Liabilities 7,265,773 5,245,378 12,511,151 The accompanying notes are an integral part of these financial statements. 13 CITY OF SCHERTZ, TEXAS STATEMENT OF NET POSITION LIABILITIES (continued) Noncurrent liabilities: Current Portion: Compensated absences Total OPEB liability Service concession arrangement Long -term debt Long -term liabilities: Compensated absences Total OPEB liability Net pension liability Service concession arrangement Long -term debt Total Non Current liabilities Total Liabilities DEFERRED INFLOWS OF RESOURCES Deferred service concession arrangement Deferred OPEB related inflows Deferred pension related inflows Total Deferred Inflows of Resources NET POSITION Net investment in capital assets Restricted for: Police and municipal court PEG capital fees Tourism development Economic development Parks and tree mitigation Debt service Scholarships and other purposes Construction Unrestricted Total Net Position The accompanying notes are an integral part of these financial statements. SEPTEMBER 30, 2020 Primary Government Governmental Business -Type 998,222 Activities Activities Total $ 193,508 $ 56,048 $ 249,556 49,258 14,087 63,345 55,241 - 55,241 4,963,565 1,856,953 6,820,518 774,032 224,190 998,222 2,263,331 647,333 2,910,664 12,108,954 3,463,260 15,572,214 432,191 - 432,191 57,423,950 14,444,296 71,868,246 78,264,030 20,706,167 98,970,197 85,529,803 25,951,545 111,481,348 314,723 - 314,723 390,190 111,750 501,940 1,531,010 439,324 1,970,334 2,235,923 551,074 2,786,997 88,959,102 75,969,319 164,928,421 2,008,135 - 2,008,135 807,140 - 807,140 2,116,464 - 2,116,464 21,018,626 - 21,018,626 755,464 - 755,464 906,735 - 906,735 1,051,874 - 1,051,874 - 15,071,599 15,071,599 4,157,801 30,570,717 34,728,518 $ 121,781,341 $ 121,611,635 $ 243,392,976 14 CITY OF SCHERTZ, TEXAS STATEMENT OF ACTIVITIES FOR THE YEAR ENDED SEPTEMBER 30, 2020 Business -type activities: Water and sewer 24,349,219 29,709,279 EMS 6,051,296 6,114,891 Total Business -Type Activities 30,400,515 35,824,170 Total Primary Government $ 76,256,626 $ 41,444,168 General revenues: Taxes: Ad valorem Sales Franchise fees Hotel /motel Mixed drink Investment earnings Miscellaneous Total General Revenues Change in Net Position Net Position - Beginning Net Position - Ending The accompanying notes are an integral part of these financial statements. 15 292,408 - 292,408 $ 2,113,673 $ 823,504 Program Revenues Operating Capital Charges for Grants and Grants and Functions /Programs Expenses Services Contributions Contributions Primary government: Governmental activities: General government $ 10,310,363 $ 836,246 $ - $ - Public safety 16,575,191 3,276,129 2,100,164 - Public environment 8,825,099 850,201 - 531,096 Parks and recreation 3,012,134 331,174 - - Cultural 1,089,564 299,944 13,509 - Health 596,288 26,304 - - Administration 3,419,407 - - - Interest 2,028,065 - - - Total Governmental Activities 45,856,111 5,619,998 2,113,673 531,096 Business -type activities: Water and sewer 24,349,219 29,709,279 EMS 6,051,296 6,114,891 Total Business -Type Activities 30,400,515 35,824,170 Total Primary Government $ 76,256,626 $ 41,444,168 General revenues: Taxes: Ad valorem Sales Franchise fees Hotel /motel Mixed drink Investment earnings Miscellaneous Total General Revenues Change in Net Position Net Position - Beginning Net Position - Ending The accompanying notes are an integral part of these financial statements. 15 292,408 - 292,408 $ 2,113,673 $ 823,504 Net (Expense) Revenue and Changes in Net Position Primary Government Governmental Business -Type Activities Activities Total $( 9,474,117) ( 11,198,898) ( 7,443,802) ( 2,680,960) ( 776,111) ( 569,984) ( 3,419,407) ( 2,028,065) ( 37,591,344) ( 37,591,344) 19, 844, 912 14,432,152 2,305,225 268,946 70,139 804,674 767,799 38,493,847 902,503 120,878,838 5,652,468 63,595 5,716,063 5,716,063 431,555 706,296 1,137,851 6,853,914 114,757,721 $ 121,781,341 $ 121,611,635 $( 9,474,117) ( 11,198,898) ( 7,443,802) ( 2,680,960) ( 776,111) ( 569,984) ( 3,419,407) ( 2,028,065) ( 37,591,344) 5,652,468 63,595 5,716,063 ( 31,875,281) 19,844,912 14,432,152 2,305,225 268,946 70,139 1,236,229 1,474,095 39,631,698 7,756,417 235,636,559 $ 243,392,976 16 CITY OF SCHERTZ, TEXAS BALANCE SHEET GOVERNMENTALFUNDS SEPTEMBER 30, 2020 General Capital Projects Debt Service Fund Fund Fund ASSETS Cash and cash equivalents $ 11,379,721 $ 10,677,080 $ 785,919 Investments 2,507,998 - - Receivables (net of allowances) Taxes 2,393,311 - 120,816 Accounts and other 3,381,019 - - Inventory 99,871 - - Prepaid items 14,916 - - Restricted assets: Cash and cash equivalents 867,708 - - Total Assets 20,644,544 10,677,080 906,735 LIABILITIES Accounts payable 1,005,821 428,387 - Accrued salaries and benefits 1,209,493 - - Retainage payable - 111,135 - Customer deposits 7,040 - - Due to other governments 123,911 - - Due to other funds 16,139 - - Unearned revenues 39,159 - - Total Liabilities 2,401,563 539,522 - DEFERRED INFLOWS OF RESOURCES Unavailable revenues 3,345,521 - 120,816 Total Deferred Inflows of Resources 3,345,521 - 120,816 FUND BALANCES Nonspendable for: Inventory 99,871 - - Prepaid items 14,916 - - Restricted for: Police and public safety /municipal court 226,092 - - Municipal court 823,452 - - PEG capital fees 807,140 - - Capital improvement - 6,065,616 - Debt service - - 785,919 Tourism development - - - Parks and tree mitigation - - - Historical Committee and library - - - Economic development - - - Animal control 33,408 - - Veterans 2,109 - - Scholarships 104,156 - - Committed for: Capital Projects - 4,071,942 - Civic Center /CIED 687,780 - - Assigned for: Property replacement 891,319 - - Subsequent year's budget 1,081,160 - - Unassigned 10,126,057 - - Total Fund Balances 14,897,460 10,137,558 785,919 Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 20,644,544 $ 10,677,080 $ 906,735 The accompanying notes are an integral part of these financial statements. 17 Economic Nonmajor Total Development Governmental Governmental Corporation Funds Funds $ 22,032,946 $ 2,169,760 818,817 7,949 4,010,846 4,124,225 31,525 1,659 $ 48,999,891 4,677,758 3,332,944 3,420,493 99,871 14,916 867,708 61,413,581 5,446,713 1,209,493 111,135 7,040 123,911 16,139 39,159 6,953,590 3,466,337 3,466,337 99,871 14,916 - 255,787 481,879 - - 823,452 - - 807,140 - 937,627 7,003,243 - - 785,919 - 2,116,464 2,116,464 - 755,464 755,464 - 88,749 88,749 21,018,626 - 21,018,626 - - 33,408 - - 2,109 - - 104,156 - - 4,071,942 - - 687,780 - - 891,319 - - 1,081,160 - - 10,126,057 21,018,626 4,154,091 50,993,654 $ 25,029,472 $ 4,155,750 $ 61,413,581 1$ THIS PAGE LEFT BLANK INTENTIONALLY CITY OF SCHERTZ, TEXAS RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION SEPTEMBER 30, 2020 Total Fund Balances - Governmental Funds $ 50,993,654 Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not current financial resources and, therefore, are not reported in the governmental funds balance sheet. 144,079,930 Bonds payable and accrued compensated absences will not be liquidated with current financial resources and, therefore, have not been included in the fund financial statements. ( 61,184,674) Interest payable on long -term debt is accrued in the government -wide financial statements, whereas in the fund financial statements, interest expenditures are reported when due. ( 328,322) Premiums on bond issuances and deferred losses on bond refunding are recorded as other financing sources and uses when paid in the fund financial statements but are capitalized and amortized in the government -wide financial statements over the life of the bonds. Premiums ( 2,170,381) Deferred loss 591,766 Receivables from grants, property taxes and fines and fees are not available soon enough to pay for the current period's expenditures and are, therefore, deferred in the fund financial statements. 3,466,337 Included in the items related to debt is the recognition of the City's net pension liability, total OPEB liability, and related deferred outflows and inflows of resources. Net pension liability ( 12,108,954) Deferred outflows related to pensions 2,210,807 Deferred inflows related to pensions ( 1,531,010) Total OPEB liability ( 2,312,589) Deferred outflows related to OPEB 464,967 Deferred inflows related to OPEB ( 390,190) Net Position of Governmental Activities $ 121,781,341 The accompanying notes are an integral part of these financial statements. 19 CITY OF SCHERTZ, TEXAS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2020 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 Bond issue costs Total Expenditures Excess (Deficiency) of Revenues Over Expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfers out Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCE FUND BALANCES - BEGINNING FUND BALANCES - ENDING General Capital Projects Debt Service Fund Fund Fund $ 25,000,163 1,750,837 1,724,150 833,148 951,604 300,369 559.393 31,119,664 154,977 132,901 287,878 $ 6,714,516 19,900 75,000 6,809,416 5,381,790 - - 15,324,530 - - 1,270,894 - - 2,067,649 - - 1,034,435 - - 589,616 - - 2,799,004 - - 1,175,241 7,837,991 - 44,544 - 4,885,000 - - 2,136,523 - - 4,200 29,687,703 7,837,991 7,025,723 1,431,961 ( 7,550,113) ( 216,307) ( 4,000,169) ( 4,000,169) ( 2,568,208) 17,465,668 $ 14,897,460 The accompanying notes are an integral part of these financial statements. 20 4,5UU,000 ( 3,050,113) 13,187,671 $ 10,137,558 ( 216,307) 1,002,226 $ 785,919 Economic Nonmajor Total Development Governmental Governmental Corporation Funds Funds $ 4,819,288 $ 268,946 $ 36,802,913 - 56,427 1,807,264 - 859,448 2,583,598 - 47,509 880,657 - - 951,604 288,740 40,688 804,674 - 505 767,799 5,108,028 1,273,523 44,598,509 4,886,456 480,202 5,366,658 96,123 42,063 34,434 10,456 74,428 263,654 521,158 10,364,369 15,366,593 1,270,894 2,102,083 1,044,891 589,616 3,353,634 9,276,886 4,929,544 2,136,523 4,200 50,439,233 ( 258,630) 752,365 ( 5,840,724) ( 500,000) ( 500,000) ( 758,630) 21,777,256 $ 21,018,626 i.0 169 752,534 3,401,557 $ 4,154,091 4,500,169 ( 4,500,169) ( 5,840,724) 56,834,378 $ 50,993,654 21 CITY OF SCHERTZ, TEXAS RECONCILIATION OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED SEPTEMBER 30, 2020 Net Changes 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 governmental activities statement of activities, that cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. Capital outlay Depreciation expense The net effect of miscellaneous transactions involving capital assets (i.e., sales, trade -ins, or donations) is to decrease net position. Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. Grants Property taxes Court fines The issuance of long -term debt (e.g. bonds) provides current financial resources to governmental funds, while the repayment of the principal of long -term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas the amounts are deferred and amortized in the Statement of Activities. Repayment of principal of long -term debt Amortization of: Loss on refunding Current year changes in certain long -term liabilities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Compensated Absences Net pension liability Total OPEB liability $( 5,840,724) 6,893,784 ( 6,612,811) 1,340) 1,526,256 ( 15,708) 118,461 5,061,481 80,729) 258,859 263,110) 167,387) Interest payable on long -term debt is accrued in the government -wide financial statements, whereas in the fund financial statements, interest expenditures are reported when due. 25,471 Change in Net Position of Governmental Activities The accompanying notes are an integral part of these financial statements. 22 $ 902,503 ASSETS Current assets: Cash and cash equivalents Investments Accounts receivable, net of allowance: Customer accounts Due from other funds Accrued interest Inventory Prepaids Total Current Assets Noncurrent assets: Restricted assets: Cash and cash equivalents Investments Investment in joint ventures Capital assets: Land Water rights Buildings and improvements Machinery, equipment, and vehicles Infrastructure Construction in progress Less: accumulated depreciation Total Noncurrent Assets Total Assets CITY OF SCHERTZ, TEXAS STATEMENT OF NET POSITION PROPRIETARY FUNDS SEPTEMBER 30, 2020 17,504,886 - 17,504,886 1,831,586 - 1,831,586 14,303,038 - 14,303,038 1,844,488 Business -Type 1,844,488 70,245 - Activities 3,635,532 Governmental 3,635,532 Enterprise Funds 2,744,957 Activities 100,588,293 - Total 17,266,273 Water and Schertz Enterprise Internal Sewer System EMS Fund Service Fund 142,589,945 4,718,047 147,307,992 $ 11,686,996 $ 1,397,860 $ 13,084,856 $ - 1,139,981 - 1,139,981 - 4,052,754 2,485,610 6,538,364 - - 16,139 16,139 - 6,324 - 6,324 - 112,717 123,965 236,682 - - 2,311 2,311 - 16,998,772 4,025,885 21,024,657 - 17,504,886 - 17,504,886 1,831,586 - 1,831,586 14,303,038 - 14,303,038 1,844,488 - 1,844,488 70,245 - 70,245 3,635,532 - 3,635,532 3,231,083 2,744,957 5,976,040 100,588,293 - 100,588,293 17,266,273 - 17,266,273 ( 34,684,251) ( 2,052,795) ( 36,737,046) 125,591,173 692,162 126,283,335 142,589,945 4,718,047 147,307,992 DEFERRED OUTFLOWS OF RESOURCES Deferred loss on refunding 40,743 - 40,743 Deferred OPEB related outflows 76,987 56,142 133,129 Deferred pension related outflows 235,622 396,768 632,390 Total Deferred Outflows of Resources 353,352 452,910 806,262 The accompanying notes are an integral part of these financial statements. 23 CITY OF SCHERTZ, TEXAS STATEMENT OF NET POSITION PROPRIETARY FUNDS SEPTEMBER 30, 2020 The accompanying notes are an integral part of these financial statements. 24 Business -Type Activities Governmental Enterprise Funds Activities Total Water and Schertz Enterprise Internal Sewer System EMS Fund Service Fund LIABILITIES Current liabilities: Accounts payable $ 3,415,313 $ 76,096 $ 3,491,409 $ - Accrued liabilities 110,467 210,993 321,460 - Retainage payable 332,514 - 332,514 - Customer deposits 560,191 - 560,191 - Accrued interest 92,897 2,145 95,042 - Unearned revenue 444,738 24 444,762 - Current portion of long -term liabilities: Compensated absences 25,206 30,842 56,048 - Total OPEB liability 5,289 8,798 14,087 Long -term debt 1,680,000 176,953 1,856,953 - Total Current Liabilities 6,666,615 505,851 7,172,466 - Noncurrent liabilities: Compensated absences 100,823 123,367 224,190 - Total OPEB liability 347,542 299,791 647,333 - Net pension liability 1,300,280 2,162,980 3,463,260 - Long -term debt 14,256,021 188,275 14,444,296 - Total Noncurrent Liabilities 16,004,666 2,774,413 18,779,079 - Total Liabilities 22,671,281 3,280,264 25,951,545 - DEFERRED INFLOWS OF RESOURCES Deferred OPEB related inflows 55,943 55,807 111,750 - Deferred pension related inflows 133,120 306,204 439,324 - Total Deferred Outflows of Resources 189,063 362,011 551,074 - NET POSITION Net investment in capital assets 75,642,385 326,934 75,969,319 - Restricted for construction 15,071,599 - 15,071,599 - Unrestricted 29,368,969 1,201,748 30,570,717 - Total Net Position $ 120,082,953 $ 1,528,682 $ 121,611,635 $ - The accompanying notes are an integral part of these financial statements. 24 CITY OF SCHERTZ, TEXAS STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2020 OPERATING REVENUES Fees charged to users Charges for premiums Other charges Miscellaneous Total Operating Revenues OPERATING EXPENSES Personnel services General and administrative Contractual services Supplies and maintenance Depreciation Total Operating Costs Operating Income (Loss) NON - OPERATING REVENUES (EXPENSES) Investment revenue Lease revenue Interest expense Total Non - Operating Revenues (Expenses) Income before contributions Capital contributions CHANGE IN NET POSITION NET POSITION - BEGINNING NET POSITION - END OF YEAR The accompanying notes are an integral part of these financial statements. Business -Type 10,639 Activities Governmental Enterprise Funds Activities Total Internal Water and Schertz Enterprise Service Sewer System EMS Funds Fund $ 29,354,240 $ 82,921 154,344 29,591,505 2,544,981 2,944,215 14,809,760 892,011 2.504.881 23,695,848 5,895,657 6,114,891 $ 551,952 6,666,843 4,106,827 564,911 674,540 371,259 329.218 6,046,755 620,088 35,469,131 $ 82,921 706,296 36,258,348 6,651,808 3,509,126 15,484,300 1,263,270 2.834.099 29,742,603 6,515,745 420,916 10,639 431,555 272,118 - 272,118 ( 653,371) ( 4,541) ( 657,912) 39,663 6,098 45,761 5,935,320 626,186 6,561,506 292,408 - 292,408 6,227,728 626,186 6,853,914 113,855,225 902,496 114,757,721 $ 120,082,953 $ 1,528,682 $ 121,611,635 $ 25 3,367,441 3,367,441 3,367,441 CITY OF SCHERTZ, TEXAS STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2020 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 suppliers for goods and services Net Cash Provided By operating Activities CASH FLOWS FROM CAPITAL & RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets Interest paid on long -term debt Principal paid on long -term debt Net Cash Used in Capital and Related Financing Activities ( 8,300,305) ( 84,138) ( 8,384,443) ( 394,102) 5,879 ( 388,223) ( 1,895,000) ( 360,133) ( 2,255,133) ( 10,589,407) ( 438,392) ( 11,027,799) CASH FLOWS FROM INVESTING ACTIVITIES Sale (purchase) of investments 27,577,692 616,919 28,194,611 Payments from leases 272,118 - 272,118 Interest and investment earnings 420,916 10,639 431,555 Net Cash Provided By (Used in) Investing Activities 28,270,726 627,558 28,898,284 Net (Decrease) Increase 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 The accompanying notes are an integral part of these financial statements. 23,779,072 1,291,513 25,070,585 1,955,132 106,347 2,061,479 3,457,678 - 3,457,678 5,412,810 106,347 5,519,157 11,686,996 1,397,860 13,084,856 17,504,886 - 17,504,886 $ 29,191,882 $ 1,397,860 $ 30,589,742 $ 26 Business -Type Activities Governmental Enterprise Funds Activities Water and Schertz Total Internal Sewer System EMS Enterprise Service Fund $ 29,475,501 $ 7,028,440 $ 36,503,941 $ - - - - 3,367,441 ( 2,256,072) ( 4,301,834) ( 6,557,906) ( 3,367,441) ( 21,121,676) ( 1,624,259) ( 22,745,935) - 6,097,753 1,102,347 7,200,100 - CASH FLOWS FROM CAPITAL & RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets Interest paid on long -term debt Principal paid on long -term debt Net Cash Used in Capital and Related Financing Activities ( 8,300,305) ( 84,138) ( 8,384,443) ( 394,102) 5,879 ( 388,223) ( 1,895,000) ( 360,133) ( 2,255,133) ( 10,589,407) ( 438,392) ( 11,027,799) CASH FLOWS FROM INVESTING ACTIVITIES Sale (purchase) of investments 27,577,692 616,919 28,194,611 Payments from leases 272,118 - 272,118 Interest and investment earnings 420,916 10,639 431,555 Net Cash Provided By (Used in) Investing Activities 28,270,726 627,558 28,898,284 Net (Decrease) Increase 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 The accompanying notes are an integral part of these financial statements. 23,779,072 1,291,513 25,070,585 1,955,132 106,347 2,061,479 3,457,678 - 3,457,678 5,412,810 106,347 5,519,157 11,686,996 1,397,860 13,084,856 17,504,886 - 17,504,886 $ 29,191,882 $ 1,397,860 $ 30,589,742 $ 26 CITY OF SCHERTZ, TEXAS STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2020 Net cash provided by operating activities SCHEDULE OF NON -CASH CAPITAL ACTIVITIES Developer contributions of capital assets $ 6,097,753 $ 1,102,347 $___7,200,100 $ 292,408 The accompanying notes are an integral part of these financial statements. 27 292,408 Business -Type Activities Governmental Enterprise Funds Activities Water and Schertz Total Internal Sewer System EMS Enterprise Service Fund RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating income (loss) $ 5,895,657 $ 620,088 $ 6,515,745 $ - Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation 2,504,881 329,218 2,834,099 - Change in investment in joint venture ( 2,886,268) - ( 2,886,268) - Decrease (increase) in accounts receivable ( 57,065) 362,724 305,659 - Decrease (increase) in inventory ( 27,702) ( 62,059) ( 89,761) - Decrease (increase) in prepaids - ( 2,311) ( 2,311) - Increase (decrease) in deferred pension outflows 166,030 392,631 558,661 - Increase (decrease) in deferred OPEB outflows ( 57,969) ( 18,764) ( 76,733) - Increase (decrease) in accounts payable 438,280 50,821 489,101 - Increase (decrease) in accrued liabilities 31,875 - 31,875 - Increase (decrease) in customer deposits ( 72,589) ( 1,135) ( 73,724) - Increase (decrease) in unearned revenue 13,650 8 13,658 - Increase (decrease) in compensated absences 6,329 ( 62,230) ( 55,901) - Increase (decrease) in net pension liability ( 178,259) ( 742,911) ( 921,170) - Increase (decrease) in deferred OPEB inflows 46,950 38,133 85,083 - Increase (decrease) in deferred pension inflows 131,184 302,398 433,582 - Increase (decrease) in total OPEB liability 142,769 ( 104,264) 38,505 - Net cash provided by operating activities SCHEDULE OF NON -CASH CAPITAL ACTIVITIES Developer contributions of capital assets $ 6,097,753 $ 1,102,347 $___7,200,100 $ 292,408 The accompanying notes are an integral part of these financial statements. 27 292,408 CITY OF SCHERTZ, TEXAS NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2020 I. 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 component unit: 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 and appoints all board members. For financial reporting purposes, the SEDC is reported as a blended component unit due to the City having operational responsibility for the component unit, and that any debt issued by SEDC would be expected to be paid using City resources. Thus, SEDC is presented as a special revenue fund within the City's financial statements. Complete financial statements for the Schertz Economic Development Corporation may be obtained from City Hall. 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. 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. 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. 28 The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges of customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. 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. 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 Capital Projects Fund accounts for the acquisition and construction of major capital facilities financed from bond proceeds, grants, and transfers from other funds. 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. Economic Development Corporation collects sales taxes to support business development and expansion within the City. The City reports the following major enterprise 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. Additionally, the City reports the following fund types: 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. 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. For purposes of the statement of cash flows, the City considers cash and other investments with maturities of three months or less from the date of purchase to be cash and cash equivalents. 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. Investments for the City are reported at fair value, except for the position in investment pools, which are reported at net asset value per share (which approximates fair value) even though it is calculated using the amortized cost method. The City categorized its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The fair value hierarchy, which has three levels, is based on the valuation inputs used to measure an asset's fair value: Level 1 inputs are quotes prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. F. Receivables and Pavables Activities between the funds that are representative of inter -fund 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. 30 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. G. Inventories and Prepaid Items 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. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both governmental -wide and fund financial statements and in the fund financial statements are offset by a nonspendable fund balance which indicates they do not represent "available spendable resources ". 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, donated works of art and similar items received as part of a service concession arrangement are reported at acquisition value, rather than fair value. 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: Use Lives Assets (Years) Buildings and improvements 10- 50 Machinery, equipment, and vehicles 2 - 20 Infrastructure 15 - 30 31 J. Deferred Inflows/ Outflows of Resources In addition to assets, the statement of financial position and /or balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense /expenditure) until then. The City has the following items that qualify for reporting in this category. • Deferred charges on refunding - A deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. • Pension and OPEB contributions after measurement date - These contributions are deferred and recognized in the following fiscal year. • Difference in expected and actual pension and OPEB experience - This difference is deferred and recognized over the estimated average remaining lives of all members determined as of the measurement date. • Changes in actuarial assumptions and other inputs - This difference is deferred and recognized over the estimated average remaining lives of all members determined as of the measurement date. In addition to liabilities, the statement of financial position and /or balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has the following types of items that qualify for reporting in this category. • Unavailable revenue is reported only in the governmental funds balance sheet. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. • Difference in projected and actual earnings on pension assets - This difference is deferred and amortized over a closed five -year period. • Difference in expected and actual pension and OPEB experience - This difference is deferred and recognized over the estimated average remaining lives of all members determined as of the measurement date. • Changes in actuarial assumptions and other inputs - This difference is deferred and recognized over the estimated average remaining lives of all members determined as of the measurement date. 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 funds only if they have matured, for example, as a result of employee resignations and retirements. The general fund, water and sewer fund and the EMS fund are used to liquidate compensated absences. L. Pensions The net pension liability, deferred inflows, and outflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Texas Municipal Retirement System (TMRS), and additions to and deductions from TMRS's fiduciary net position have been determined on the same basis as they are reported by TMRS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. 32 M. Other Post - Employment Benefits (OPEB) Supplemental Death Benefits Fund. For purposes of measuring the total Texas Municipal Retirement System Supplemental Death Benefit Fund (TMRS SDBF) OPEB liability, related deferred outflows and inflows of resources, and expense, City specific information about its total TMRS SDBF liability and additions to /deductions from the City's total TMRS SDBF liability have been determined on the same basis as they are reported by TMRS. The TMRS SDBF expense and deferred (inflows) /outflows of resources related to TMRS SDBF, primarily result from changes in the components of the total TMRS SDBF liability. Most changes in the total TMRS SDBF liability will be included in TMRS SDBF expense in the period of the change. For example, changes in the total TMRS SDBF liability resulting from current - period service cost, interest on the TOL, and changes of benefit terms are required to be included in TMRS SDBF expense immediately. Changes in the total TMRS SDBF liability that have not been included in TMRS SDBF expense are required to be reported as deferred outflows of resources or deferred inflows of resources related to TMRS SDBF. Retiree Health Insurance. For purposes of measuring the total OPEB liability, OPEB related deferred outflows and inflows of resources, and OPEB expense, benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Contributions are not required but are measured as payments by the City for benefits due and payable that are not reimbursed by plan assets. Information regarding the City's total OPEB liability is obtained from a report prepared by a consulting actuary, Gabriel Roeder Smith & Company. N. 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 straight -line 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. O. Fund Balance 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. Only the General Fund reports positive unassigned fund balances; if another fund were to have unassigned fund balance, it would be in the event of a deficit. 33 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. P. 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 position is reported as restricted when there are limitations imposed by creditors, grantors, or laws or regulations of other governments. Q. 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. R. Budgetary Information Annual budgets are adopted on a basis consistent with generally accepted accounting principles for all governmental funds except the library grant special revenue fund, police department forfeiture special revenue fund and the capital projects fund, which adopts project - length budgets. S. Reclassifications Certain reclassifications have been made in the presentation of the September 30, 2020 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. II. DETAILED NOTES ON ALL FUNDS AND ACTIVITIES A. Cash, Cash Equivalents and Investments As of September 30, 2020, the City had the following cash, cash equivalents and investments: LOGIC, Lone Star Investment Pool and Texas CLASS are recorded as cash equivalents in the financial statements. All of the pools have redemption notice periods of one day and may redeem daily. The investment pools' authorities may only impose restrictions on redemptions in the event of a general suspension of trading on major securities markets, general banking moratorium or national state of emergency that affects the pools' liquidity. 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. 34 Reported Weighted Average Value Maturity (days) Investment type: LOGIC $ 16,517,388 52 Lone Star Investment Pool 26,805,191 40 Texas CLASS 28,316,948 56 Certificates of Deposit 4,352,113 111 U.S. Agency Securities 3,297,212 389 Subtotal 79,288,852 Plus: depository and petty cash 8,822,544 Total cash and investments $_88 111 396 LOGIC, Lone Star Investment Pool and Texas CLASS are recorded as cash equivalents in the financial statements. All of the pools have redemption notice periods of one day and may redeem daily. The investment pools' authorities may only impose restrictions on redemptions in the event of a general suspension of trading on major securities markets, general banking moratorium or national state of emergency that affects the pools' liquidity. 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. 34 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, 2020, 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. As of September 30, 2020, the City's investments in debt securities were rated BBB+ by Standard & Poor's. 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, 2020, 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. Restricted Cash - Cash is restricted in the Proprietary fund for construction projects, impact fees and customer deposits. B. Property Taxes 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, 2019, upon which the fiscal 2020 levy was based, was $3,794,711,341 (i.e., market value less exemptions). The estimated market value was $5,135,969,482, making the taxable value 73.9% 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, 2020, was $0.5087 per $100 of assessed value, which means that the City has a tax margin of $1.9913 for each $100 value and could increase its annual tax levy by approximately $75,564,087 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. C. Receivables Receivables as September 30, 2020 for the government's individual major funds and nonmajor funds in the aggregate, including the applicable allowances for uncollectible accounts, are as follows: D. Deferred Inflows and Outflows of Resources 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. At the end of the current fiscal year, the various components of unavailable revenue and unavailable revenue reported in the governmental funds were as follows: Unavailable General Fund Grants $ 1,526,256 Delinquent property taxes receivable 240,847 Court fines 1,578,418 Total General Fund 3,345,521 Debt Service Fund Delinquent property taxes receivable 120,816 Total Debt Service Fund 120,816 Total Governmental Funds $ 3,466,337 36 Governmental Activities Business -type Activities General Economic Debt Nonmajor Water and Schertz Fund Development Service Funds Sewer Fund EMS Receivables: Property taxes $ 256,219 $ - $ 128,527 $ - $ - $ - Sales tax 1,637,634 818,817 - - - - Occupancy taxes - - - 31,525 - - Franchise taxes 493,400 - - - - - Customers 2,236 - - - 4,183,673 4,850,568 Court fines 3,878,178 - - - - - Grants 1,500,854 - - - - - Other 328,344 7,949 - - - 112,189 Gross receivables 8,096,865 826,766 128,527 31,525 4,183,673 4,962,757 Less: allowance for uncollectible accounts ( 2,322,535) - 7,711) - ( 35,029) ( 2,477,147) Net receivables $ 5,774,330 $ 826,766 $ 120,816 $ 31,525 $ 4,148,644 $_2,485 610 D. Deferred Inflows and Outflows of Resources 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. At the end of the current fiscal year, the various components of unavailable revenue and unavailable revenue reported in the governmental funds were as follows: Unavailable General Fund Grants $ 1,526,256 Delinquent property taxes receivable 240,847 Court fines 1,578,418 Total General Fund 3,345,521 Debt Service Fund Delinquent property taxes receivable 120,816 Total Debt Service Fund 120,816 Total Governmental Funds $ 3,466,337 36 Additionally, the proprietary funds and governmental activities statements of net position report various deferred outflows and inflows of resources, primarily due to pensions and OPEB, that are summarized by column. The following table presents the disaggregated amounts. Deferred outflows: Charge on refunding Related to pensions Related to OPEB - SDBF Related to OPEB - Retiree Health Plan Total deferred outflow Deferred inflows: Service concession arrangement Related to pensions Related to OPEB - SDBF Related to OPEB - Retiree Health plan Total deferred inflow E. Interfund Balances and Transfers Business -type Activities Governmental Water/ Activities Sewer EMS Totals $ 591,766 $ 40,743 $ - $ 632,509 2,210,807 235,622 396,768 2,843,197 176,022 17,839 32,554 226,415 288,945 28,962 53,774 371,681 $ 3,267,540 $ 323,166 $ 483,096 $ 4,073,802 $ 314,723 $ - $ - 314,723 1,531,010 133,120 306,204 1,970,334 100,508 10,039 18,741 129,288 289,682 28,533 54,437 372,652 $ 2,235,923 $ 171,692 $ 379,382 $ 2,786,997 The composition of interfund balances as of September 30, 2020 is as follows: Due From Due To Amount Purpose EMS General $ 16,139 Short -term pool cash loan The following schedule briefly summarizes the City's transfer activity for the year ending September 30, 2020: Transfer From Transfer To Amount Purpose General Nonmajor governmental $ 169 Suplement funds sources General Capital Projects 4,000,000 Funding for various capital projects EDC Capital Projects 500,000 Funding for various capital projects F. Capital Assets Capital asset activity for the year ended September 30, 2020 was as follows: Governmental activities: Capital assets not being depreciated: Land Construction in progress Total capital assets not being depreciated Capital assets being depreciated: Buildings and improvements Machinery, equipment, and vehicles Street and infrastructure Total assets being depreciated Less accumulated depreciation for: Buildings and improvements Machinery, equipment, and vehicles Street and infrastructure Total accumulated depreciation Total capital assets being depreciated, net Governmental activities capital assets, net Beginning Transfers/ Ending Balance Additions Retirements Balance $ 8,073,199 $ 1,000 $ - $ 8,074,199 21,045,668 3,864,741 ( 83,499) 24,826,910 29,118,867 3,865,741 ( 83,499) 32,901,109 46,367,441 - ( 1,919,692) 44,447,749 12,958,097 2,496,947 ( 902,628) 14,552,416 117,414,346 531,096 2,000,000 119,945,442 176,739,884 3,028,043 ( 822,320) 178,945,607 ( 15,113,305) ( 1,569,679) ( 140,652) ( 16,823,636) ( 7,142,846) ( 1,177,719) 889,747 ( 7,430,818) ( 39,802,303) ( 3,865,413) 155,384 ( 43,512,332) ( 62,058,454) ( 6,612,811) 904,479 ( 67,766,786) 114,681,430 ( 3,584,768) 82,159 111,178,821 $ 143,800,297 $ 280,973 $( 1,340) $ 144,079,930 37 Depreciation expense was charged to functions /programs of the primary government as follows: Governmental activities: Beginning 2021 Transfers/ Ending 685,676 Balance Additions Retirements Balance Business -type activities: 3,902,377 Parks and recreation 960.602 893,563 Capital assets, not being depreciated: 42,377 Administration Land $ 1,696,942 $ 147,546 $ - $ 1,844,488 Water rights 70,245 - - 70,245 Construction in progress 9,248,439 8,017,834 - 17,266,273 Total capital assets, not being Total Depreciation $ 9,446,910 depreciated 11,015,626 8,165,380 - 19,181,006 Capital assets being depreciated: Buildings and improvements 5,489,184 - ( 1,853,652) 3,635,532 Machinery, equipment, and vehicle< 6,007,550 237,865 ( 269,375) 5,976,040 Infrastructure 100,295,885 292,408 - 100,588,293 Total assets being depreciated 111,792,619 530,273 ( 2,123,027) 110,199,865 Less accumulated depreciation for: Buildings and improvements ( 2,696,375) ( 152,395) 1,880,059 ( 968,711) Machinery, equipment, and vehicleE ( 5,352,311) ( 622,266) 215,683 ( 5,758,894) Infrastructure ( 27,950,003) ( 2,059,438) - ( 30,009,441) Total accumulated depreciation ( 35,998,689) ( 2,834,099) 2,095,742 ( 36,737,046) Total capital assets being depreciated, net 75,793,930 ( 2,303,826) ( 27,285) 73,462,819 Business -type activities capital assets, net $__86 809 556 $ 5,861,554 $( 27,285) $ 92,643,825 Depreciation expense was charged to functions /programs of the primary government as follows: Governmental activities: Total 2021 General government $ 685,676 Public safety 263,221 1,081,765 Public environment 2025 3,902,377 Parks and recreation 960.602 893,563 Cultural 42,377 Administration 7,053 Total $ 6,612,811 Business -type activities: Water and sewer system $ 2,504,881 EMS 329,218 Total $ 2,834,099 Total Depreciation $ 9,446,910 G. Operating Leases 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. Year Ending September 30, Total 2021 $ 238,749 2022 250,687 2023 263,221 2024 276,382 2025 290,201 2026 -2028 960.602 $_2,279 842 38 H. Lonci-Term Debt Changes in long -term debt for the year ending September 30, 2020 are as follows: Bonds Payable 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 tax notes. 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. Proprietary operating revenues for the year exceeded $36.3 million and sales tax revenue was $14.4 million. Additionally, certain obligations that were marketed as private placements have been separately identified; however, the terms of these obligations are not significantly different than other obligations and do not have substantive acceleration clauses. Should the City default on these bonds, any registered owner of the obligations is entitled to seek a writ of mandamus from a court of proper jurisdiction requiring the City to make payment. 39 Beginning Refunded/ Ending Amount Due Balance Issued Retired Balance Within One Year Governmental activities: General Obligation Bonds $ 36,965,000 $ - $( 2,350,000) $ 34,615,000 $ 2,350,000 Certificates of Obligation 16,235,000 - ( 1,000,000) 15,235,000 1,035,000 General Obligation Bonds - Private Placement 11,355,000 - ( 1,350,000) 10,005,000 1,380,000 Tax Notes - Private Placement 530,000 - ( 185,000) 345,000 190,000 Premium from Debt 2,338,297 - ( 167,916) 2,170,381 - Capital Lease 25,699 - ( 8,565) 17,134 8,565 Compensated Absences 1,226,399 182,752 ( 441,611) 967,540 193,508 Total governmental $ 68,675,395 $ 182,752 $( 5,503,092) $ 63,355,055 $ 5,157,073 Business -type activities: General Obligation Bonds $ 3,215,000 $ - $( 570,000) $ 2,645,000 $ 590,000 Certificates of Obligation 12,330,000 - ( 825,000) 11,505,000 850,000 General Obligation Bonds - Private Placement 1,230,000 - ( 190,000) 1,040,000 200,000 Tax Notes - Private Placement 460,000 - ( 310,000) 150,000 150,000 Unamortized Premium 871,608 - ( 42,827) 828,781 - Capital Lease 199,421 - ( 66,953) 132,468 66,953 Compensated Absences 336,139 47,894 ( 134,764) 249,269 49,854 Total business -type $ 18,642,168 $ 47,894 $( 2,139,544) $ 16,550,518 $ 1,906,807 Bonds Payable 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 tax notes. 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. Proprietary operating revenues for the year exceeded $36.3 million and sales tax revenue was $14.4 million. Additionally, certain obligations that were marketed as private placements have been separately identified; however, the terms of these obligations are not significantly different than other obligations and do not have substantive acceleration clauses. Should the City default on these bonds, any registered owner of the obligations is entitled to seek a writ of mandamus from a court of proper jurisdiction requiring the City to make payment. 39 A summary of the terms of long -term debt outstanding at September 30, 2020, is as follows: Governmental Activities General Obligation Bonds 2011 Series 2012 Series 2014 Series, Refunding 2015 Series, Refunding 2016 Series 2017 Series 2018 Series, Refunding Private Placement obligations 2007 Series GO 2011A Series GO Refunding 2018 Series GO Refunding 2015 Tax Notes 2015A Tax Notes Certificates of Obligation 2016 Series A 2016 Series B 2017 Series 2018 Series 2019 Series Issue Amount Maturity Rate Balance $ 8,250,000 2036 3.0% -6.0% $ 6,320,000 7,625,000 2032 2.00% 5,085,000 8,450,000 2030 2.0% -4.0% 7,900,000 4,185,000 2031 2.0% - 3.25% 1,830,000 5,880,000 2036 2.0% -4.0% 4,830,000 3,935,000 2037 2.0% -4.0% 3,495,000 5,830,000 2033 3.125% - 5% 5,155,000 6,000,000 6,745,000 6,035,000 245,000 1,020,000 2,375,000 1,475,000 4,935,000 4,845,000 4,015,000 Total Governmental Long -Term Obligations Issue Business -type Activities 4.07% General Obligation Bonds 2024 2011 Series, Refunding $ 2,675,000 2018 Series, Refunding 2,740,000 Certificates of Obligation 2021 2013 Series 4,965,000 2017 Series 540,000 2018 Series 5,595,000 2019 Series 3,480,000 Private Placement obligations 3.0% - 3.75% 2013 Series GO Refunding 2,130,000 2015 Tax Notes 1,880,000 Total Business -Type Long -Term Obligations 40 2027 4.07% 2,590,000 2024 2.33% 2,490,000 2028 2.12% 4,925,000 2021 1.75% 40,000 2023 1.54% 305,000 2036 2.0% -4.0% 1,685,000 2036 3.0% - 3.75% 1,250,000 2037 3.0% - 3.75% 4,120,000 2038 3.0% - 5.0% 4,415,000 2039 2.5% - 5% 3.765.000 $ 60,200,000 Maturity Rate Balance 2021 2.0% - 3.0% $ 240,000 2026 3.125% - 5% 2,405,000 2033 2.0% -4.0% 2,690,000 2022 3.0% - 3.75% 225,000 2028 3.0% - 5.0% 5,235,000 2039 2.5% - 5% 3,355,000 2025 2.58% 1,040,000 2021 1.75% 150,000 $ 15,340,000 Annual future debt service requirements of bonded debt as of September 30, 2020, are as follows: Governmental activities: General Obligation Bonds Certificates of Obligation Year Ended September 30, Principal Interest Total Principal Interest Total 2021 2022 2023 2024 2025 2026 -2030 2031 -2035 2036 -2040 Total $ 2,350,000 $ 1,199,709 $ 3,549,709 2,005,000 1,119,576 3,124,576 2,090,000 1,046,890 3,136,890 2,195,000 970,158 3,165,158 2,250,000 889,602 3,139,602 13,290,000 3,108,828 16,398,828 9,000,000 889,983 9,889,983 1.435.000 30.613 1.465.613 $ 34,615,000 $ 9,255,360 $ 43,870,360 $ 1,035,000 $ 510,519 $ 1,545,519 1,070,000 472,219 1,542,219 1,120,000 432,319 1,552,319 1,010,000 391,244 1,401,244 905,000 352,719 1,257,719 3,680,000 1,329,200 5,009,200 4,115,000 706,353 4,821,353 2,300,000 109,431 2,409,431 $ 15,235,000 $ 4,304,003 $ 19,539,003 Private Placement Debt General Obligation Bonds Tax Notes Year Ended September 30, Principal Interest Total Principal Interest Total 2021 $ 1,380,000 $ 249,534 $ 1,629,534 $ 190,000 $ 5,397 $ 195,397 2022 1,595,000 210,303 1,805,303 155,000 2,387 157,387 2023 1,625,000 167,982 1,792,982 - - - 2024 1,640,000 124,903 1,764,903 - - - 2025 1,010,000 88,758 1,098,758 - - - 2026 -2030 2,755,000 95,698 2,850,698 - - - Total $ 10,005,000 $ 937,178 $ 10,942,178 $ 345,000 $ 7,784 $__352,784 Business -type activities: General Obligation Bonds Certificates of Obligation Year Ended September 30, Principal Interest Total Principal Interest Total 2021 2022 2023 2024 2025 2026 -2030 2031 -2035 2036 -2040 Total $ 590,000 $ 118,700 $ 708,700 370,000 93,500 463,500 390,000 74,500 464,500 410,000 54,500 464,500 435,000 33,375 468,375 450,000 11,250 461,250 $_2,645,000 $ 385,825 $ 3,030,825 $ 850,000 $ 404,675 $ 1,254,675 605,000 378,775 983,775 510,000 356,300 866,300 530,000 333,613 863,613 550,000 310,250 860,250 3,155,000 1,165,962 4,320,962 3,290,000 547,025 3,837,025 2,015,000 89,944 2,104,944 $ 11,505,000 $ 3,586,544 $ 15,091,544 Private Placement Debt General Obligation Bonds Tax Notes Year Ended September 30, Principal Interest Total Principal Interest Total 2021 $ 200,000 $ 24,252 $ 224,252 $ 150,000 $ 2,625 $ 152,625 2022 205,000 19,028 224,028 - - - 2023 205,000 13,739 218,739 - - - 2024 215,000 8,321 223,321 - - - 2025 215,000 2,774 217,774 - - - 2026 -2030 - - - - - - Total $_1,040,000 $ 68,112 $ 1,108,112 $ 150,000 $ 2,625 $ 152,625 41 Capital Leases The City enters into various lease agreements to finance machinery and equipment; they are classified as capital leases due to bargain - purchase options. Therefore, capital assets and a related capital lease obligation have been recorded at the present value of the future minimum lease payments at the inception date. The lease obligations are secured by the purchased equipment. The assets acquired through capital lease are reported in capital assets with the following accumulated depreciation at September 30, 2020: Assets: Equipment Less: accumulated depreciation Tota I Future minimum lease payments are as follows: Year Ending September 30, Governmental Business -type Activities Activities $ 54,275 $ 332,967 28,433) ( 198,305) $ 25,842 $ 134,662 Governmental Business -type Activities Activities 2021 $ 8,565 $ 67,313 2022 8,569 65,875 Total payments 17,134 133,188 Less: amount representing interest - ( 720) Present value of minimum lease payments $ 17,134 $ 132,468 I. Net Pension and Total OPEB Liabilities and Expenses Amounts are aggregated into a single net pension liability and total OPEB liability, and expenses for certain columns. Below is the detail of net pension liability and total OPEB liability and expenses for governmental and business -type activities. Net pension liability Total OPEB liability: Due within one year: TMRS SDBF Retiree health plan Total due within one year Due in within more than one year: TMRS SDBF Retiree health plan Total due in more than one year Total OPEB liability Pension expense OPEB expense: TMRS SDBF Retiree Health Plan Total OPEB expense Business -type Activities Governmental Water/ Activities Sewer EMS Totals $_12 108 954 $ 1,300,280 $ 2,162,980 $ 15,572,214 $ 3,068 $ 329 $ 548 $ 3,945 46,190 4,960 8,250 59,400 49,258 5,289 8,798 63,345 626,855 171,814 7,472 806,141 1,636,476 175,728 292,319 2,104,523 2,263,331 347,542 299,791 2,910,664 $_2,312 589 $ 352,831 $ 308,589 $ 2,974,009 Business -type Activities Governmental Water/ Activities Sewer EMS Totals $_2,515,909 $__270 162 $ 449,408 $ 3,235,479 $ 61,569 $ 12,184 $ 5,169 $ 78,922 156,298 33,234 10,710 200,242 $ 217,867 $ 45,418 $ 15,879 $ 279,164 11 Pi A. Retirement Plan Plan Description. The City of Schertz participates as one of 888 plans in the nontraditional, joint contributory, hybrid defined benefit pension plan administered by the Texas Municipal Retirement System (TMRS). TMRS is an agency created by the state of Texas and administered in accordance with the TMRS Act, Subtitle G, Title 8, Texas Government Code (the TMRS Act) as an agent multiple - employer retirement system for municipal employees in the State of Texas. The TMRS Act places the general administration and management of the system with a six- member Board of Trustees. Although the Governor, with the advice and consent of the Senate, appoints the Board, TMRS is not fiscally dependent on the State of Texas. TMRS's defined benefit pension plan is a tax - qualified plan under Section 401(a) of the Internal Service Code. TMRS issues a publicly available comprehensive annual financial report (CAFR) that can be obtained at www.tmrs.com. All eligible employees of the City are required to participate in TMRS. Benefits Provided. TMRS provides retirement, disability, and death benefits. Benefit provisions are adopted by the governing body of the City, within the options available in the state statutes governing TMRS. At retirement, the benefit is calculated as if the sum of the employee's contributions, with interest, and the City- financed monetary credits with interest were used to purchase an annuity. Members may choose to receive their retirement benefit in one of seven payment options. Members may also choose to receive a portion of their benefit as a Partial Lump Sum Distribution in an amount equal to 12, 24, or 36 monthly payments, which cannot exceed 75% of the member's deposits and interest. The City grants monetary credits for service rendered of a theoretical amount equal to two times what would have been contributed by the employee, with interest. Monetary credits, also known as the matching ratio, are 200% of the employee's accumulated contributions and are only payable in the form of an annuity. Beginning in 2008, the City granted an annually repeating (automatic) basis monetary credit referred to as an updated service credit (USC) which is a theoretical amount that takes into account salary increases or plan improvements. If at any time during their career an employee earns a USC, this amount remains in their account earning interest at 5% until retirement. At retirement, the benefit is calculated as if the sum of the employee's accumulated contributions with interest and the employer match plus employer- financed monetary credits, such as USC, with interest were used to purchase an annuity. Additionally, initiated in 2008, the City provided on an annually repeating (automatic) basis cost of living adjustments (COLA) for retirees equal to a percentage of the change in the consumer price index (CPI). At the December 31, 2019 valuation and measurement date, the following employees were covered by the benefit terms: Inactive employees or beneficiaries currently receiving benefits 116 Inactive employees entitled to but not yet receiving benefits 209 Active employees 344 Total 669 Contributions. The contribution rates for employees in TMRS are either 5 %, 6 %, or 7% of employee gross earnings, and the City matching percentages are either 100 %, 150 %, or 200 %, both as adopted by the governing body of the City. Under the state law governing TMRS, the contribution rate for each city is determined annually by the actuary, using the Entry Age Normal (EAN) actuarial cost method. The actuarially determined rate is the estimated amount necessary to finance the cost of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees for the City were required to contribute 7% of their annual gross earnings during the fiscal year. The contribution rates for the City were 15.92% and 16.04% in calendar years 2020 and 2019, respectively. The City's contributions to TMRS for the year ended September 30, 2020 were $3,235,479 and were equal to the required contributions. 43 Net Pension Liability. The City's Net Pension Liability (NPL) was measured as of December 31, 2019, and the Total Pension Liability JPQ used to calculate the Net Pension Liability was determined by an actuarial valuation as of that date. The net pension liability is typically liquidated through the General Fund and Enterprise Funds. Actuarial Assumptions The Total Pension Liability in the December 31, 2019 actuarial valuation was determined using the following actuarial assumptions: Inflation 2.SU% per year Overall payroll growth 2.75% per year Investment rate of return 6.75% net ofpension plan investment expense, including inflation Salary increases are based on a service-related table. Mortality rates for active members are based on the PUB(10) mortality tables with the Public Safety table used for males and the General Employee table used for females. Mortality rates for healthy retirees and beneficiaries are based on the Gender-distinct 2019 Municipal Retirees of Texas mortality tables. The rates for actives, healthy retirees and beneficiaries are projected on a fully generational basis by Scale UMP to account for future mortality improvements. For disabled annuitants, the same mortality tables for healthy retirees is used with a 4-year set-forward for males and a 3-year set-forward for females. In addition, a 3.596 and 3.096 minimum mortality rate will be applied to reflect the impairment for younger members who become disabled for males and females. The rates are projected on a fully generational basis by Scale UMP to account for future mortality improvements subject to the floor. The actuarial assumptions were developed primarily from the actuarial investigation of the experience of TMRS over the four-year period from December 31, 2014 to December 31, 2010. They were adopted in 2019 and first used in the December 31, 2019 actuarial valuation. The post-retirement mortality assumption for healthy annuitants and Annuity Purchase Rate (APRs) are based on the Mortality Experience Investigation Study covering 2009 through 2011 and dated December 31, 2013. In conjunction with these changes first used in the December 31, 2013 valuation, the System adopted the Entry Age Normal actuarial cost method and a one-time change to the amortization policy. Plan assets are managed on a total return basis with an emphasis on both capital appreciation as well as the production of income, in order to satisfy the short-term and long-term funding needs ofTMRS. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. In determining their best estimate of recommended investment return assumption under the various alternative asset allocation portfolios, GRS focused on the area between (1) arithmetic mean (aggressive) without an adjustment for time (conservative) and (2) the geometric mean (conservative) with an adjustment for time (aggressive). 44 Long'TennExpected Real Rate ofReturn Asset Class Target Allocation (Arithmetic) Global Equity 308096 53096 Core Fixed Income 10.0096 1.2596 Non-Core Fixed Income 20.0096 4.14% Real Estate 10.0096 3.8596 Real Return 10.0096 4.0096 Absolute Return 10.0096 3.4896 Private Equity 10.00%z 7.7596 44 Discount Rate The discount rate used to measure the Total Pension Liability was 6.75 %. The projection of cash flows used to determine the discount rate assumed that employee and employer contributions will be made at the rates specified in statute. Based on that assumption, the pension plan's Fiduciary Net Position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the long -term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the Total Pension Liability. The below schedule presents the changes in the Net Pension Liability as of December 31, 2019: Balance at 12/31/2018 Changes for the year: Service cost Interest Difference between expected and actual experience Change in assumptions Contributions - employer Contributions - employee Net investment income Benefit payments, including refunds of employee contributions Administrative expense Other changes Net changes Balance at 12/31/2019 Increase (Decease Total Pension Plan Fiduciary Net Pension Liability Net Position Liability (a) (b) (a) -(b) $ 71,981,331 $ 52,293,723 $ 19,687,608 3,421,878 - 3,421,878 4,898,478 - 4,898,478 ( 108,478) - ( 108,478) 263,015 - 263,015 - 3,163,340 ( 3,163,340) - 1,380,585 ( 1,380,585) - 8,093,416 ( 8,093,416) ( 2,244,447) ( 2,244,447) - - ( 45,681) 45,681 - ( 1,373) 1,373 6,230,446 10,345,840 ( 4,115,394) $ 78,211,777 $_62,.639 563 $ 15,572,214 The following presents the net pension liability of the City, calculated using the discount rate of 6.75 %, as well as what the City's net pension liability would be if it were calculated using a discount rate that is 1- percentage point lower (5.75 %) or 1- percentage point higher (7.75%) than the current rate: 1% Decrease in 1% Increase in Discount Rate Discount Rate Discount Rate (5.75 %) (6.75 %) (7.75 %) Net pension liability $ 28,805,341 $ 15,572,214 $ 4,920,053 Pension Expense and Deferred Outflows /Inflows of Resources Related to Pensions. For the year ended September 30, 2020, the City recognized pension expense of $3,569,490. Also, as of September 30, 2020, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Differences between expected and actual economic experience Changes in actuarial assumptions Difference between projected and actual investment earnings Contributions subsequent to the measurement date Tota I U� Deferred Outflows Deferred Inflows of Resources of Resources $ 293,422 $ 94,103 222,869 - 11876,231 2,326,906 - $ 2,843,197 $ 1,970,334 $2,326,906 reported as deferred outflows of resources related to pensions resulting from contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability for the year ending September 30, 2021. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: For the Year Ended September 30, 2021 $( 373,727) 2022 ( 393,997) 2023 186,999 2024 ( 879,260) 2025 5,942 B. Other Post - Employment Benefits The City participates in two defined - benefit other post - employment benefit (OPEB) plans: the Texas Municipal Retirement System Supplemental Death Benefits Fund (TMRS SDBF), and its own single - employer retiree health plan. Both are described in detail below. The total OPEB liabilities of both plans are typically liquidated through the General Fund and Enterprise Funds. TMRS Supplemental Death Benefits Fund Plan Description. The City voluntarily participates in a single - employer other postemployment benefit (OPEB) plan administered by TMRS. The Plan is a group -term life insurance plan known as the Supplemental Death Benefits Fund (SDBF). The Plan is established and administered in accordance with the TMRS Act identically to the City's pension plan. SDBF includes coverage for both active and retired members, and assets are commingled for the payment of such benefits. Therefore, the Plan does not qualify as an OPEB Trust in accordance with paragraph 4 of GASB Statement No. 75. Benefits Provided. The SDBF provides group -term life insurance to City employees who are active members in TMRS, including or not including retirees. The City Council opted into this program via an ordinance, and 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. Payments from this fund are similar to group -term life insurance benefits, and are paid to the designated beneficiaries upon the receipt of an approved application for payment. 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). The death benefit for retirees is considered an other employment benefit and is a fixed amount of $7,500. Membership in the plan at December 31, 2019, the valuation and measurement date, consisted of: Inactive employees or beneficiaries currently receiving benefits 90 Inactive employees entitled to but not yet receiving benefits 59 Active employees 344 Tota 1 493 Contributions. The City contributes to the SDBF at a contractually required rate as determined by an annual actuarial valuation, which was 0.12% for 2020 and 0.12% for 2019, of which 0.02% represented the retiree -only portion for each year, as a percentage of annual covered payroll. 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 prefund retiree term life insurance during employees' entire careers. The City's contributions to the SDBF for the years ended September 30, 2020 were $4,080 representing contributions for both active and retiree coverage, which equaled the required contributions each year. 46 Total OPEB Liability. The Total OPEB Liability in the December 31, 2019 actuarial valuation was determined using the following actuarial assumptions and inputs: Measurement year ended December 31, Inflation rate Discount rate Actuarial cost method Projected salary increases Administrative expenses Mortality Rates - Service Retirees 2019 2.50% per annum 2.75% Entry Age Normal Method 3.50% to 11.5% including inflation All administrative expenses are paid through the Pension Trust and accounted for under reporting requirements under GASB Statement No. 68. 2019 Municipal Retirees of Texas Mortality Tables. The rates are projeted on a fully generational bases with scale UMP. Mortality Rates - Disabled Retirees 2019 Municipal Retirees of Texas Mortality Tables with a 4 year set forward for males and a 3 year set - forward for females. In addition, a 3.5% and 3% minimum mortality rate will be applied to reflect the impairment for younger members who become disabled for males and females, respectively. The rates are projected on a fully generational basis with scale UMP to account for future mortality improvements subject to the floor. Changes in assumptions reflect the annual change in the municipal bond rate. The actuarial assumptions used in the December 31, 2019 valuation were based on the results of an actuarial experience study for the period December 31, 2014 to December 31, 2018. Discount Rate. The SDBF program is treated as an unfunded OPEB plan because the SDBF trust covers both actives and retirees and the assets are not segregated for these groups. As such, a single discount rate of 3.71% was used to measure the total OPEB liability. Because the plan is essentially a "pay -as- you -go" plan, the single discount rate is equal to the prevailing municipal bond rate. The source of the municipal bond rate was fixed - income municipal bonds with 20 years to maturity that include only federally tax - exempt municipal bonds as reported in Fidelity Index's "20 -year Municipal GO AA Index" as of December 31, 2019. Discount Rate Sensitivity Analysis. The following schedule shows the impact of the total OPEB liability if the discount rate used was 1% less than and 1% greater than the discount rate that was used (2.75%) in measuring the total OPEB liability. 1% Decrease in Discount Rate (1.75 %) Discount Rate (2.75 %) Total SDB OPEB Liability $ 1,012,834 $ 810,086 Cl► 1% Increase in Discount Rate (3.75 %) 657,204 Changes in the Total OPEB Liability. Total City's Total OPEB Liability (TOL), based on the above actuarial factors, as of December 31, 2019, the measurement and actuarial valuation date, was calculated as follows: Changes in assumptions and other inputs reflect a change in the discount rate from 3.71% to 2.75 %. OPEB Expense and Deferred Inflows and Outflows of Resources Related to OPEB. For the year ended September 30, 2020, the City recognized OPEB expense of $78,922. Also, as of September 30, 2020, the City reported deferred outflows and inflows of resources related to the TMRS OPEB from the following sources: Differences between expected and actual economic experience Changes in actuarial assumptions Contributions subsequent to the measurement date Tota I Deferred Outflows Total OPEB of Resources Liability Balance at 12/31/2018 $ 710,387 Changes for the year: $ 90,023 Service cost 33,528 Interest 26,904 Difference between expected and actual experience ( 105,282) Changes of assumptions or other inputs 148,494 Benefit payments, including refunds of employee contributions ( 3,945) Net changes 99,699 Balance at 12/31/2019 $ 810,086 Changes in assumptions and other inputs reflect a change in the discount rate from 3.71% to 2.75 %. OPEB Expense and Deferred Inflows and Outflows of Resources Related to OPEB. For the year ended September 30, 2020, the City recognized OPEB expense of $78,922. Also, as of September 30, 2020, the City reported deferred outflows and inflows of resources related to the TMRS OPEB from the following sources: Differences between expected and actual economic experience Changes in actuarial assumptions Contributions subsequent to the measurement date Tota I Deferred Outflows Deferred Inflows of Resources of Resources 2021 $ 18,490 $ 62,704 $ 90,023 160,764 39,265 2,947 - $ 226,415 $ 129,288 $2,947 reported as deferred outflows of resources related to OPEB resulting from contributions subsequent to the measurement date will be recognized as a reduction of the Total OPEB liability for the year ending September 30, 2021. Other amounts reported as deferred outflows and inflows of resources related to the TMRS OPEB will be recognized in OPEB expense in future periods as follows: For the Year Ended September 30, 2021 $ 18,490 2022 18,490 2023 18,490 2024 18,490 2025 13,171 Thereafter 7,049 City of Schertz Retiree Health Other Post - Employment Benefit Plan In addition to the TMRS OPEB, The City administers a single employer defined benefit healthcare plan for retirees, established under legal authority of the City Charter. The City is the only employer participating in the Plan. The Plan does not issue a publicly available financial report. 48 The City provides post - employment benefits for eligible participants enrolled in City- sponsored plans. The benefits are provided in the form of an implicit rate subsidy where the City contributes towards the retiree health premiums before achieving Medicare eligibility. While the Plan offers retiree only rates, a very small implicit liability still exists. Membership in the plan as of December 31, 2019, the valuation date, consisted of: Inactive employees or beneficiaries currently receiving benefits 8 Inactive employees entitled to but not yet receiving benefits - Active employees 332 Total 340 Current active employees must be eligible for service retirement under the Texas Municipal Retirement System. To attain this eligibility active employees must be at least age 60 with 5 years of service or have at least 20 years of employment with the City. When a regular, full -time employee retires, they are eligible to maintain their coverage in the City's group health coverage. The City does not provide an explicit subsidy for retiree medical insurance. The liability for the City is due to the implicit rate. The City made no direct contributions for monthly premiums. The retirees pay 102% of the monthly premiums which range based on the type of plan from $508 for retiree only to $1,796 for a retiree and their family. The City's Retiree Health OPEB Liability (TOL) as of December 31, 2019, was calculated as follows: The actuarial valuation was performed as of December 31, 2019. Changes of assumptions reflect a change in the discount rate from 3.71% as of December 31, 2018 to 2.75% as of December 31, 2019, revised TMRS demographic assumptions, and updates to both the health care trend and participation assumptions. The following presents the TOL of the City, calculated using the discount rate of 2.75% as well as what the City's TOL would be if it were calculated using a discount rate that is 1- percentage point lower (1.75%) and 1- percentage point higher (3.75 %) than the current rate: 1% Decrease in 1% Increase in Discount Rate Discount Rate Discount Rate (1.75 %) (2.75 %) (3.75 %) Total OPEB liability - retiree health $ 2,371,845 $ 2,163,923 $ 1,973,066 The following presents what the total OPEB liability of the City would be if it were calculated using healthcare cost trend rates that are 1- percentage point lower (6% decreasing to 3.5 %) or 1- percentage point higher (8% decreasing to 5.5 %) than the current healthcare cost trends: Current Healthcare Cost 1% Decrease Trend Rate Assumption 1% Increase Total OPEB liability - retiree health $ 1,906,398 $ 2,163,923 $ 2,469,777 49 Total OPEB Liability Balance at 12/31/2018 $ 2,086,718 Changes for the year: Service cost 125,648 Interest 78,646 Difference between expected and actual experience ( 343,086) Changes of assumptions or other inputs 275,398 Benefit payments, including refunds of employee contributions ( 59,401) Net changes 77,205 Balance at 12/31/2019 $ 2,163,923 The actuarial valuation was performed as of December 31, 2019. Changes of assumptions reflect a change in the discount rate from 3.71% as of December 31, 2018 to 2.75% as of December 31, 2019, revised TMRS demographic assumptions, and updates to both the health care trend and participation assumptions. The following presents the TOL of the City, calculated using the discount rate of 2.75% as well as what the City's TOL would be if it were calculated using a discount rate that is 1- percentage point lower (1.75%) and 1- percentage point higher (3.75 %) than the current rate: 1% Decrease in 1% Increase in Discount Rate Discount Rate Discount Rate (1.75 %) (2.75 %) (3.75 %) Total OPEB liability - retiree health $ 2,371,845 $ 2,163,923 $ 1,973,066 The following presents what the total OPEB liability of the City would be if it were calculated using healthcare cost trend rates that are 1- percentage point lower (6% decreasing to 3.5 %) or 1- percentage point higher (8% decreasing to 5.5 %) than the current healthcare cost trends: Current Healthcare Cost 1% Decrease Trend Rate Assumption 1% Increase Total OPEB liability - retiree health $ 1,906,398 $ 2,163,923 $ 2,469,777 49 For the year ended September 30, 2020, the City recognized OPEB expense of $200,242. Also, as of September 30, 2020, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual economic experience $ 12,008 $ 307,562 Changes in actuarial assumptions 314,511 65,090 Contributions subsequent to the measurement date 45,162 - Total $ 371,681 $ 372,652 $45,162 reported as deferred outflows of resources related to OPEB resulting from contributions subsequent to the measurement date will be recognized as a reduction of the Total OPEB liability for the year ending September 30, 2021. Other amounts reported as deferred outflows and inflows of resources related to the City's Retiree Health OPEB will be recognized in OPEB expense as follows: For the Year Ended September 30, 2021 $( 4,051) 2022 ( 4,051) 2023 ( 4,051) 2024 ( 4,051) 2025 ( 4,051) Thereafter ( 25,878) C. 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. Payments to the corporation are generally for the purchase of water treatment and for covering the Corporation's debt service requirements; they are reflected as "operating expenses" in the water and sewer fund and totaled $6,942,912 for the year ended September 30, 2020. Separate financial statements for the Schertz /Seguin Local Government Corporation may be obtained from the City of Seguin, 210 East Gonzales Street, Seguin, Texas 78156. The City of Schertz is jointly liable, together with the City of Seguin, for operating deficits and long -term debt of the Schertz /Seguin Local Government Corporation. The Corporation had net revenue bonds outstanding in the amount of $161,747,682 (as of September 30, 2020) 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. The organizing documents for the Corporation provide that, in the event of dissolution, the net assets of the Corporation will be equally divided among the Cities of Schertz and Seguin. As such, the City's net investment in the joint venture has been recorded in the Water and Sewer Fund in the amount of $13,189,181. This amount reflects the City's portion of the net position of SSLGC as of September 30, 2019, the most recent fiscal year for which information is available. [ 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 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. Payments to the corporation are generally for the purchase of wastewater treatment and for covering the Corporation's debt service requirements; they are reflected as "operating expenses" in the water and sewer fund and totaled $100,000 for the year ended September 30, 2020. 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 Cibolo, for operating deficits and long -term debt of CVLGC. In the event of dissolution, the net assets of the Corporation will be equally divided among the Cities of Schertz and Cibolo. As such, the City's net investment in the joint venture has been recorded in the Water and Sewer Fund in the amount of $1,113,857 as of September 30, 2020. D. Commitments and Contingencies Tax Increment Financing (the "Zone ") 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 $2,844,145 from taxing entities (net of administrative reimbursements) and remitted $2,000,000 to the developer as of September 30, 2020. 380 Agreements The Chapter 380 Incentive program, authorized by Chapter 380 of the Texas Local Government Code, enables the City of Schertz to provide grants or reimbursements from the City's general fund. To become eligible for Chapter 380 Incentives, projects must: create at least of $100 million in new real and personal property; or generate at least $35 million in gross sales that is subject to the collection of local sales and use tax. Businesses that have a 380 Incentive agreement with the City are eligible to receive a reimbursement of taxes paid for the year if they have met the requirements outlined in the agreement by a certain date each year. For the fiscal year ended September 30, 2020, the City reimbursed $1,223,379 in property taxes paid. Economic Development Incentive Agreements The City of Schertz Economic Development Corporation (the SEDC) negotiates economic development incentive agreement on behalf of the SEDC and the City of Schertz (the City) on an individual basis. As of September 30, 2020, the City had nine active incentive agreements. On May 2, 2017, the City and the Corporation approved the Schertz Incentive Policy which outlines the City's primary tools to attract commercial investment and promote economic development. Projects are selected on a case -by -case basis in accordance current policy and state laws at the discretion of the governing body. All incentive agreements are formalized through a performance agreement with specified terms and recapture criteria. 51 The SEDC Incentive program, authorized by Chapters 501, 502 and 505 of the Texas Local Government Code, enables the Corporation to fund allowable projects from the collection of one -half of one percent of sales tax proceeds collected in the City of Schertz. In accordance with state law, the SEDC Incentive Policy establishes grants and loans for businesses that create Primary Jobs for the following categories: Existing Businesses (3 years of operation within City), Small Businesses (fewer than 50 full -time jobs or annual sales less than $10 million), Large Impact Businesses (Up to $100 million in taxable property), and Extra Large Businesses (over $100 million in taxable property). The City and Corporation's outstanding incentive agreement grants are as follows: City of Schertz - LGC 380.001 $ 420,050 $ 200,000 SEDC - LGC 501.101 811,445 522,819 SEDC - LGC 201.103 4,722,292 3,534,167 Service Concession Arrangements The City entered into an agreement with Young Men's Christian Association of Greater San Antonio ( "YMCA "), under which YMCA will operate and collect user fees from the Natatorium and Outdoor Pools for the next 20 years. YMCA will pay the city $100,000 annually over the course of the arrangement to cover costs of debt service related to the facility; the present value of these installment payments is estimated to be $820,141. The City will approve the rates and services that YMCA will provide, however, YMCA will retain all revenues earned from the operation of the Natatorium. The YMCA will remit all revenues received from operating the Outdoor Pools to the City with the exception of revenues earned from YMCA specific programs. As of September 30, 2019, the Natatorium is still under construction and is reported by the City as Construction in Progress. The City reports the Outdoor Pools and related equipment as capital assets recorded at historical cost. The City reports a receivable in the amount of $820,141 on the government -wide statements at year -end pursuant to the service concession arrangement, and a liability of $498,361 for the present value of maintenance costs estimated over the life of the Service Concession arrangement. The balance of these two amounts is recorded as a deferred inflow of resources. 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. Cibolo Creek Municipal Authority The Cibolo Creek Municipal Authority (CCMA) provides sewage treatment forthe area in and around the City. In Fiscal year 2014, the City entered into an agreement with CCMA 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 agreement stipulates that the City will pay all future debt service on the bonds issued by CCMA to finance the project. 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. Future debt service on the CCMA bonds are as follows: Year Ended September 30, Principal Interest Total 2021 $ 160,000 $ 250,950 $ 410,950 2022 165,000 247,750 412,750 2023 170,000 242,800 412,800 2024 175,000 237,700 412,700 2025 180,000 232,450 412,450 2026 -2030 1,010,000 1,048,850 2,058,850 2031 -2035 1,225,000 830,250 2,055,250 2036 -2040 1,540,000 519,250 2,059,250 2041 -2044 1,490,000 152,000 1,642,000 Total $ 6,115,000 $ 3,762,000 $ 9,877,000 Construction Commitments The City of Schertz has entered into commitments for various projects as follows: Primary Government: Governmental Activities: FM 78 and Main Street Fire Station 3 Building Improvements Main Street Improvements FM 1518 Street Improvements Pedestrian Routes Project Senior Center YMCA - Bathroom Reovation Window Replacement- Recreation Center Total Governmental Commitments Business -Type Activities: Woman Hollering WasteWater Corbett Ground Storage Tank & Pumps Corbett Elevated Water Tank Trainer Hale Road Distribution Main Scenic Hills /Greenridge Oil -Water Separator E Dietz Creek De- Silting FM1103 Utility Relocation Total Business -Type Activities Total Estimated Future Commitments Risk Management Estimated Project Expended to Estimated Future Cost to City Date Commitment $ 1,000,000 $ 235,006 $ 764,994 8,480,775 8,480,775 - 1,600,000 72,560 1,527,440 407,057 - 407,057 5,000,000 600,656 4,399,344 350,000 149,234 200,766 800,000 793,181 6,819 540,500 505,707 34,793 1,152,264 792,198 360,066 19,330,596 11,629,317 7,701,279 5,940,424 1,211,157 4,729,267 1,650,000 930 1,649,070 5,500,000 4,892,528 607,472 500,000 - 500,000 73,252 12,495 60,757 120,000 79,883 40,117 573,055 508,834 64,221 1,315,000 1,265,958 49,042 15,671,731 7,971,785 7,699,946 $ 35,002,327 $_19,601 102 $ 15,401,225 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. There were no significant increases or decreases in coverage from the prior year. For the past three fiscal years, no claims or settlements have exceeded deductible amounts. 53 E. Subseauent Event In November 2020, the City issued General Obligation Refunding Bonds, Series 2020 in the amount of $7,555,000. These bonds have interest rates ranging from 1.50% and 4.00% and will mature in February 2036. These bonds will be used to refund the General Obligation Refunding Bonds, Series 2011 to provide a present value savings and are secured by the City's ad valorem tax revenue. F. New Accounting Standards Significant new accounting standards issued by the Governmental Accounting Standards Board (GASB) not yet implemented by the City include the following: Statement No. 84, Fiduciary Activities - This Statement improves guidance regarding the identification of fiduciary activities for accounting and financial reporting purposes and how those activities should be reported. The focus is generally on whether a government is controlling the assets of the fiduciary activity and on the beneficiaries with whom a fiduciary relationship exists. This Statement will become effective for the City in fiscal year 2021. Statement No. 87, Leases - This Statement will improve the accounting and financial reporting for leases by governments by requiring recognition of certain lease assets and liabilities previously classifies as operating leases. It establishes a single model for lease accounting based on the principle that leases are financing the right to use an underlying asset. Under the Statement a lessee is required to recognize a lease liability and an intangible right -to -use asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resource, enhancing the relevance and consistency of information about leasing activities. This Statement will become effective for the City in fiscal year 2022. G. COVID -19 In early March 2020, the COVID-19 virus was declared a global pandemic, and it continues to cause market fluctuations. Business continuity and financial markets, including supply chains and consumer demand across a broad range of industries and countries, could be severely impacted for months or more, as governments and their citizens take significant and unprecedented measures to mitigate the consequences of the pandemic. Management is carefully monitoring the situation and evaluating its options during this time. 54 CITY OF SCHERTZ, TEXAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL GENERAL FUND FOR THE YEAR ENDED SEPTEMBER 30, 2020 w Variance With Final Budget Original Final Actual Positive Budget Budget Amounts (Negative) REVENUES Taxes $ 24,085,050 $ 24,085,050 $ 25,000,163 $ 915,113 Permits and fees 1,799,110 1,799,110 1,750,837 ( 48,273) Service fees 1,901,742 1,901,742 1,724,150 ( 177,592) Fines and fees 902,728 902,728 833,148 ( 69,580) Intergovernmental 756,100 756,100 951,604 195,504 Investment earnings 480,000 480,000 300,369 ( 179,631) Miscellaneous 570,760 602,859 559,393 ( 43,466) Total Revenues 30,495,490 30,527,589 31,119,664 592,075 EXPENDITURES General government: Council 108,837 129,542 110,886 18,656 City manager 1,194,870 1,194,870 1,168,026 26,844 Municipal court 340,383 340,383 324,431 15,952 311 customer relations 107,747 107,747 110,238 ( 2,491) Planning & zoning 253,322 253,322 182,849 70,473 Legal 150,000 150,000 107,721 42,279 City secretary 201,461 201,461 206,458 ( 4,997) Nondepartmental 2,015,010 1,851,617 1,446,148 405,469 Public affairs 596,624 596,625 557,107 39,518 Engineering 767,011 767,011 659,373 107,638 Geographic information systems 182,674 182,674 187,173 ( 4,499) Citizens assistance 330,000 330,000 287,962 42,038 Special events 24,510 29,510 31,690 ( 2,180) Total General Government 6,272,449 6,134,762 5,380,062 754,700 Public safety: Police department 9,079,001 9,079,001 7,604,159 1,474,842 Fire department 5,458,243 5,595,724 5,056,610 539,114 Inspection 999,402 999,402 903,194 96,208 Total Public Safety 15,536,646 15,674,127 13,563,963 2,110,164 Public environment: Streets 1,522,166 1,749,074 1,521,425 227,649 Total Public Environment 1,522,166 1,749,074 1,521,425 227,649 Parks and recreation: Parks 1,553,939 1,620,028 1,312,154 307,874 Pools 569,878 569,878 471,528 98,350 Community /Civic Center 395,017 395,018 320,481 74,537 Total Parks and Recreation 2,518,834 2,584,924 2,104,163 480,761 Cultural: Library 1,025,736 1,025,897 1,034,435 ( 8,538) Total Cultural 1,025,736 1,025,897 1,034,435 ( 8,538) w CITY OF SCHERTZ, TEXAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL GENERAL FUND FOR THE YEAR ENDED SEPTEMBER 30, 2020 EXPENDITURES (CONTINUED) Health: Animal control Total Health Administration: Information technology Human resources Finance Purchasing & asset management Building maintenance Fleet service Interfund charges Total Administration Total Expenditures - general fund Grant fund - sub -fund 405 Total Expenditures Variance With Final Budget Original Final Actual Positive Budget Budget Amounts (Negative) $ 669,982 $ 699,826 $ 648,503 $ 51,323 669,982 699,826 648,503 51,323 4,000,169) 10,581 Total Other Financing Sources (Uses) ( 2,455,137 2,470,537 1,821,502 649,035 639,174 704,174 668,638 35,536 608,893 608,893 634,266 ( 25,373) 233,183 233,183 235,505 ( 2,322) 1,491,682 1,608,197 1,432,015 176,182 1,046,481 1,046,481 913,883 132,598 ( 2,723,317) ( 2,723,317) ( 2,703,943) ( 19,374) 3,751,233 3,948,148 3,001,866 946,282 31,297,046 31,816,758 27,254,417 4,562,341 - - 2,433,286 ( 2,433,286) 31,297,046 31,816,758 29,687,703 2,129,055 Excess of revenues over expenditures ( 801,556) ( 1,289,169) 1,431,961 2,721,130 OTHER FINANCING SOURCES (USES) Transfers in 95,000 405,025 - ( 405,025) Transfers out ( 4,010,750) ( 4,010,750) ( 4,000,169) 10,581 Total Other Financing Sources (Uses) ( 3,915,750) ( 3,605,725) ( 4,000,169) ( 394,444) NET CHANGE IN FUND BALANCE ( 4,717,306) ( 4,894,894) ( 2,568,208) 2,326,686 FUND BALANCE - BEGINNING 17,465,668 17,465,668 17,465,668 - FUND BALANCE - ENDING $ 12,748,362 $ 12,570,774 $ 14,897,460 $ 2,326,686 M CITY OF SCHERTZ, TEXAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL ECONOMIC DEVELOPMENT CORPORATION REVENUES Taxes Investment income Total Revenues EXPENDITURES Current: General government Administration Total Expenditures FOR THE YEAR ENDED SEPTEMBER 30, 2020 6,922,995 6,929,900 4,886,456 2,043,444 529,936 523,031 480,202 42,829 7,452,931 7,452,931 5,366,658 2,086,273 OTHER FINANCING SOURCES (USES) Transfers out ( 500,000) ( 500,000) ( 500,000) Total Other Financing Sources (Uses) ( 500,000) ( 500,000) ( 500,000) NET CHANGE IN FUND BALANCE ( 3,110,648) ( 3,110,648) Variance With FUND BALANCE - BEGINNING 21,777,256 21,777,256 Final Budget Original Final Actual Positive Budget Budget Amounts (Negative) $ 4,412,283 $ 4,412,283 $ 4,819,288 $ 407,005 430,000 430,000 288,740 ( 141,260) 4,842,283 4,842,283 5,108,028 265,745 6,922,995 6,929,900 4,886,456 2,043,444 529,936 523,031 480,202 42,829 7,452,931 7,452,931 5,366,658 2,086,273 OTHER FINANCING SOURCES (USES) Transfers out ( 500,000) ( 500,000) ( 500,000) Total Other Financing Sources (Uses) ( 500,000) ( 500,000) ( 500,000) NET CHANGE IN FUND BALANCE ( 3,110,648) ( 3,110,648) ( 758,630) 2,352,018 FUND BALANCE - BEGINNING 21,777,256 21,777,256 21,777,256 - FUND BALANCE - ENDING $ 18,666,608 $ 18,666,608 $ 21,018,626 $ 2,352,018 CITY OF SCHERTZ, TEXAS NOTES TO BUDGETARY SCHEDULES SEPTEMBER 30, 2020 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. A Grant sub -fund is included in the General Fund for financial reporting purposes, and was not included in the legally adopted budget of the General Fund. Therefore, the amount of the Grant sub -fund is presented as a reconciling item between the budgetary General Fund actual amounts and the General Fund amounts presented in the basic financial statements. Budgetary preparation and control are exercised at the department level. Actual expenditures may not legally exceed appropriations at the fund level. Appropriations lapse at year -end. For the fiscal year ended September 30, 2020, actual expenditures did not exceed budgeted expenditures at the fund level for any of the City's funds. Encumbrance accounting, in which appropriations are recorded as budgetary expenditures, is not utilized by the City. 58 CITY OF SCHERTZ, TEXAS SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS TEXAS MUNICIPAL RETIREMENT SYSTEM FOR THE YEAR ENDED SEPTEMBER 30, 2020 Measurement Date December 31, Total pension liability Service cost Interest on total pension liability Difference between expected and actual experience Change of assumptions Benefit payments /refunds of contributions Net Change in Total Pension Liability Total Pension Liability, Beginning Total Pension Liability, Ending (a) Plan fiduciary net position Contributions - employer Contributions - employee Net investment income Benefit payments /refunds of contributions Administrative expenses Other Net Change in Fiduciary Position Fiduciary Net Position, Beginning Fiduciary Net Position, Ending (b) Net pension liability = (a) -(b) Fiduciary Net Position as a Percentage of Total Pension Liability Covered Payroll Net Pension Liability as a Percentage of Covered Payroll 2019 $ 3,421,878 $ 4,898,478 ( 108,478) 263,015 ( 2,244,447) 6,230,446 71,981,331 2018 2017 3,301,265 $ 3,073,538 4,505,483 4,111,517 34,393 416,585 ( 1,914,159) ( 1,843,774 5,926,982 5,757,866 66,054,349 60,296,483 $ 78,211,777 $ 71,981,331 $ 66,054,349 $ 3,163,340 $ 3,033,936 $ 2,793,644 1,380,585 1,326,518 1,232,232 8,093,416 ( 1,540,890) 5,999,805 ( 2,244,447) ( 1,914,159) ( 1,843,774) ( 45,681) ( 29,768) ( 31,080) ( 1,373) ( 1,554) ( 1,575) 10,345,840 874,083 8,149,252 52,293,723 51,419,640 43,270,388 62,639,563 52,293,723 51,419,640 $ 15,572,214 $ 19,687,608 $ 14,634,709 80.09% 72.65% 77.84% $ 19,722,641 $ 18,896,766 $ 17,603,310 78.96% 104.19% 83.14% Note: GASB Statement No. 68 requires 10 years of data to be provided in this schedule. As of year -end, all years are not available. Additional years will be added in the future as the information becomes available. 59 2016 2015 2014 $ 2,855,745 $ 3,763,562 139,216 ( 1,581,272) 5,177,251 55,119,232 2,724,337 $ 3,556,428 120,434 59,193 ( 1,570,211) 4,890,181 50,229,051 2,558,743 3,245,266 ( 122,286) ( 1,068,487) 4,613,236 45,615,815 $ 60,296,483 $ 55,119,232 $ 50,229,051 $ 2,627,335 $ 2,542,565 $ 2,403,929 1,152,864 1,095,260 1,077,097 2,602,572 53,742 1,841,586 ( 1,581,272) ( 1,570,211) ( 1,068,487) ( 29,385) ( 32,727) ( 19,219) ( 1,583) ( 1,616) ( 1,580) 4,770,531 2,087,013 4,233,326 38,499,857 36,412,844 32,179,518 43,270,388 38,499,857 36,412,844 $ 17,026,095 $ 16,619,375 $ 13,816,207 71.76% 69.85% $ 16,478,620 $ 15,648,114 $ 103.32% 106.21% 72.49% 15,389,154 89.78% 60 CITY OF SCHERTZ, TEXAS SCHEDULE OF EMPLOYER CONTRIBUTIONS TEXAS MUNICIPAL RETIREMENT SYSTEM FOR THE YEAR ENDED SEPTEMBER 30, 2020 Fiscal Year Ended September 30, 2020 2019 Actuarially determined contribution $ 3,235,479 $ 3,129,413 Contributions in relation to the actuarially determined contribution 3,235,479 3,129,413 Contribution deficiency (excess) Covered payroll 20,401,412 19,520,269 Contributions as a percentage of covered payroll 15.86% 16.03% Note: GASB Statement No. 68 requires 10 years of data to be provided in this schedule. As of year -end, all years are not available. Additional years will be added in the future as the information becomes available. NOTES TO SCHEDULE OF CONTRIBUTIONS Valuation Date: Actuarially determined contribution rates are calculated as of December 31st and become effective on January 1st, 13 months and a day later. Methods and Assumptions Used to Determine Contribution Rates: Actuarial cost method Entry age normal Amortization method Level percentage of payroll, closed Remaining amortization period 26 years Asset valuation method 10 year smoothed market; 12% soft corridor Inflation 2.50% Salary increases 3.50% to 11.50% including inflation Investment rate of return 6.75% Retirement age Experience -based table of rates that are specific to the City's plan of benefits. Last updated for the 2019 valuation pursuant to an experience study of the period 2014 -2018. Mortality Post- retirement: 2019 Municpal Retirees of Texas Mortality Tables. The rates are projected on a fully generational basis with scale UMP. Pre - retirement: PUB(10) mortality tables, with the Public Safety table used for males and the General Employee table used for females. The rates are projected on a fully generational basis with scale UMP. 61 2018 2017 2016 2015 $ 2,971,592 $ 2,756,511 $ 2,592,593 $ 2,487,856 2,971.592 18,605,654 15.97% 756,511 2,592,593 17, 347, 849 15.89% 16,175,988 16.03% 62 2.487,856 15,486,735 16.06% CITY OF SCHERTZ, TEXAS SCHEDULE OF CHANGES IN TMRS OTHER POST - EMPLOYMENT BENEFIT LIABILITY AND RELATED RATIOS FOR THE YEAR ENDED SEPTEMBER 30, 2020 Measurement Date December 31, Total OPEB liability Service cost Interest on total OPEB liability Differences in actuarial experience Change of assumptions Benefit payments Net change in total OPEB liability Total OPEB liability, beginning Total OPEB liability, ending (a) Covered - employee payroll Total OPEB liability as a percentage of covered - employee payroll 2019 2018 2017 $ 33,528 $ 37,794 $ 29,926 26,904 21,182 20,123 ( 105,282) 86,276 - 148,494 ( 54,027) 57,257 ( 3,945) ( 3,779) ( 3,521) 99,699 87,446 103,785 710,387 622,941 519,156 $ 810,086 $ 710,387 $ 622,941 $ 19,722,641 $ 18,896,766 $ 17,603,310 4.11% 3.76% 3.54% Note: 10 years of data is required to be provided in this schedule. As of year -end, all years are not available. Additional years will be added in the future as the information becomes available. NOTES TO SCHEDULE Valuation Date: Actuarially determined contribution rates are calculated as of December 31st and become effective on January 1st, 13 months and a day later. Methods and Assumptions Used to Determine Contribution Rates: Inflation 2.50% Salary increases 3.50% to 11.50% including inflation Discount rate 2.75% Administrative expenses All administrative expenses are paid through the Pension Trust and accounted for under reporting requirements under GASB Statement No. 68. Mortality rates - service retirees 2019 Municipal Retirees of Texas Mortality Tables. The rates are projected on a fully generational basis with scale LIMP. Mortality rates - disabled retirees 2019 Municipal Retirees of Texas Mortality Tables with a 4 year setforward for males and a 3 year set - forward for females. In addition, a 3.5% and 3% minimum mortality rate will be applied to reflect the impairment for younger members who become disabled for males and females, respectively. The rates are projected on a fully generational basis by Scale UMP to account for future mortality improvements subject to the 3% floor. Other information No assets are accumulated in a trust that meets the criteria in paragraph 4 of Statement No. 75 to pay related benefits. Changes in actuarial assumptions reflect changes in the discount rate and, in 2019, changes in assumptions adopted from review of plan provisions. 63 CITY OF SCHERTZ, TEXAS SCHEDULE OF CHANGES IN CITY RETIREE HEALTH OTHER POST - EMPLOYMENT BENEFIT LIABILITY AND RELATED RATIOS FOR THE YEAR ENDED SEPTEMBER 30, 2020 Measurement Date December 31, 2020 2019 2018 Total OPEB liability Service cost Interest on total OPEB liability Difference in actuarial experience Change of assumptions Benefit payments Net change in total OPEB liability Total OPEB liability, beginning Total OPEB liability, ending (a) Covered payroll Total OPEB liability as a percentage of covered payroll $ 125,648 $ 121,821 $ 107,517 78,646 67,947 69,435 ( 343,086) 14,962 Demographic assumptions 275,398 ( 81,106) 96,092 ( 59,401) ( 57,530) ( 42,189) 77,205 66,094 230,855 2,086,718 2,020,624 1,789,769 $ 2,163,923 $ 2,086,718 $ 2,020,624 $ 19,521,924 $ 18,974,951 $ 16,068,891 11.08% 11.00% 12.57% Note: 10 years of data is required to be provided in this schedule. As of year -end, all years are not available. Additional years will be added in the future as the information becomes available. NOTES TO SCHEDULE Valuation Date: December 31, 2020 Methods and Assumptions Used to Determine Contribution Rates: Actuarial cost method Individual entry -age Discount rate 2.75% as of December 31, 2019 Inflation 2.50% Salary increases 3.50% to 11.50% including inflation Demographic assumptions Based on the experience study covering the four -year period ending December 31, 2018 as conducted for the Texas Municipal Retirement System (TMRS). Mortality For healthy retirees, the gender- distinct 2019 Municipal Retirees of Texas mortality tables are used. The rates are projected on a fully generational basis using the ultimate mortality improvement rates in the MP tables to account for future mortality improvements. Health care trend rates Initial rate of 7.00% declining to an ultimate rate of 4.15% after 15 years. Participation rates For all non - Medicare retirees, 30% if retiring from age 50 to 59, and 35% if retiring from age 60 to 64. Other information The discount rate changed from 3.71% as of December 31, 2018 to 2.75% as of December 31, 2019. Additionally, the demographic assumptions were updated to reflect the 2019 TMRS Experience Study. Both the participation assumption and health care trend rates were updated to reflect the plan's anticipated experience. 64 SUPPLEMENTARY INFORMATION Comparative Schedules — Governmental Funds General Fund Economic Development Corporation Debt Service Fund Capital Projects Fund Combining Statements and Individual Fund Schedules - Nonmaior Governmental Funds Hotel Occupancy Fund - will account for proceeds of hotel occupancy taxes to be used strictly for those kinds of programs that promote the tourism industry. Park Fund - will account for revenues from developers' fees (in lieu of park land dedication), grants, and donations and is designed to monitor and manage improvement of the City's park system. Tree Mitigation Fund - will account for revenues from permits, grants and donations to preserve and replace trees in the City. Treasury Forfeitures Fund - will account for revenue received from drug related cases in conjunction with other law enforcement agencies within the jurisdiction of the U.S. Treasury department. Justice Forfeitures Fund - will account for revenue received from drug related cases in conjunction with other law enforcement agencies within the jurisdiction of the US Department of Justice. State Forfeitures Fund - will account for revenue received from drug related cases in conjunction with other law enforcement agencies within the jurisdiction of the State Forfeiture Program. 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. Capital Recovery Roadways Fund - to account for a fee assessed for capital recovery on new construction. CITY OF SCHERTZ, TEXAS COMPARATIVE BALANCE SHEETS GENERAL FUND SEPTEMBER 30, 2020 (WITH COMPARATIVE TOTALS FOR 2019) ASSETS Cash and cash equivalents Investments Receivables (net of allowances) Taxes Accounts and other Inventory Prepaids Restricted assets: Cash and cash equivalents Total Assets LIABILITIES Accounts payable Accrued salaries and benefits Customer deposits Due to other governments Due to other funds Unearned revenues Total Liabilities DEFERRED INFLOWS OF RESOURCES Unavailable revenues Total Deferred Inflows of Resources FUND BALANCES Nonspendable for: Inventory Restricted for: Police and public safety /municipal court Municipal court PEG capital fees Animal control Veterans Scholarships Committed for: Civic Center /CIED Assigned for: Property replacement Subsequent year's budget Unassigned Total Fund Balances Total Liabilities, Deferred inflows of Resources, and Fund Balances 65 2020 2019 11,379,721 $ 1,211,660 2,507,998 15,105,396 2,393,311 2,134,563 3,381,019 1,775,482 99,871 117,009 14,916 14,916 867,708 785,708 20,644,544 21,144,734 1,005,821 685,560 1,209,493 970,679 7,040 22,251 123,911 123,116 16,139 16,139 39,159 33,314 2,401,563 1,851,059 3,345,521 1,754,646 3,345,521 1,754,646 114,787 131,925 226,092 226,093 823,452 823,451 807,140 723,353 33,408 33,408 2,109 2,109 104,156 101,673 687,780 687,779 891,319 891,321 1,081,160 4,689,305 10,126,057 9,228,612 14,897,460 17, 539,029 $ 20,644,544 $ 21,144,734 CITY OF SCHERTZ, TEXAS COMPARATIVE SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GENERAL FUND FOR THE YEAR ENDED SEPTEMBER 30, 2020 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED 2019) 66 2020 2019 REVENUES Taxes $ 25,000,163 $ 23,488,223 Permits and fees 1,750,837 1,605,299 Service fees 1,724,150 1,909,300 Fines and fees 833,148 926,657 Intergovernmental 951,604 965,768 Investment earnings 300,369 489,051 Miscellaneous 559,393 684,882 Total Revenues 31,119,664 30,069,180 EXPENDITURES Current: General government 5,381,790 5,389,701 Public safety 15,324,530 13,926,364 Public environment 1,270,894 1,112,041 Parks and recreation 2,067,649 2,350,370 Cultural 1,034,435 998,445 Health 589,616 498,871 Administration 2,799,004 3,231,294 Capital outlay 1,175,241 649,055 Debt service: Principal 44,544 - Total Expenditures 29,687,703 28,156,141 Excess (Deficiency) of Revenues Over Expenditures 1,431,961 1,913,039 OTHER FINANCING SOURCES (USES) Transfers out ( 4,000,169) ( 4,463) Total Other Financing Sources (Uses) ( 4,000,169) ( 4,463) NET CHANGE IN FUND BALANCE ( 2,568,208) 1,908,576 FUND BALANCES - BEGINNING 17,465,668 15,630,453 FUND BALANCES - ENDING $ 14,897,460 $ 17,539,029 66 CITY OF SCHERTZ, TEXAS COMPARATIVE BALANCE SHEETS ECONOMIC DEVELOPMENT CORPORATION SEPTEMBER 30,2020 (WITH COMPARATIVE TOTALS FOR 2019) ASSETS Cash and cash equivalents Investments Receivables, net of allowances: Taxes Accounts and other Total Assets LIABILITIES Accounts payable Total Liabilities FUND BALANCES Restricted for: Economic development Total Fund Balances Total Liabilities and Fund Balances 67 2020 $ 22,032,946 2,169,760 818,817 7,949 25,029,472 4,010,846 4,010,846 21,018,626 21,018,626 $ 25,029,472 2019 $ 224,144 20,824,561 739,361 8,448 21,796,514 19,258 19,258 21,777,256 21,777,256 $ 21,796,514 CITY OF SCHERTZ, TEXAS COMPARATIVE SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE ECONOMIC DEVELOPMENT CORPORATION FOR THE YEAR ENDED SEPTEMBER 30, 2020 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED 2019) REVENUES Taxes Investment earnings Miscellaneous Total Revenues EXPENDITURES Current: General government Administration 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 BALANCES - BEGINNING FUND BALANCES - ENDING 68 2020 2019 $ 4,819,288 $ 4,172,238 288,740 452,214 - 196,003 5,108,028 4,820,455 4,886,456 358,810 480,202 496,357 5,366,658 855,167 ( 258,630) 3,965,288 ( 500,000) - ( 500,000) - ( 758,630) 3,965,288 21,777,256 17,811,968 $ 21,018,626 $ 21,777,256 CITY OF SCHERTZ, TEXAS COMPARATIVE BALANCE SHEETS DEBT SERVICE FUND SEPTEMBER 30, 2020 (WITH COMPARATIVE TOTALS FOR 2019) ASSETS Cash and cash equivalents Investments Receivables, net of allowances: Taxes Total Assets DEFERRED INFLOWS OF RESOURCES Unavailable revenues Total Deferred Inflows of Resources FUND BALANCES Restricted for: Debt service Total Fund Balances Total Deferred Inflows of Resources and Fund Balances 69 2020 2019 $ 785,919 $ 91,510 - 910,716 120,816 82,682 906,735 1,084,908 120,816 120,816 785,919 785,919 $ 906,735 1,002,226 1,002,226 $ 1,084,908 CITY OF SCHERTZ, TEXAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE DEBT SERVICE FUND BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 2020 (WITH COMPARATIVE ACTUAL TOTALS FOR 2019) REVENUES Property taxes Investment income Miscellaneous Total Revenue EXPENDITURES Debt service: Principal Interest and fiscal charges Bond issue costs Payment to refunded bond escrow agent Total Expenditures 4,952,413 4,952,413 4,885,000 Variance With 4,565,000 2,069,590 2,069,590 2020 Final Budget 2019 Original Final Actual Positive Actual Budget Budget Amounts (Negative) Amounts $ 6,733,000 $ 6,733,000 $ 6,714,516 $( 18,484) $ 6,414,868 50,000 50,000 19,900 ( 30,100) 70,318 100,000 100,000 75,000 ( 25,000) 100,277 6,883,000 6,883,000 6,809,416 ( 73,584) 6,585,463 4,952,413 4,952,413 4,885,000 67,413 4,565,000 2,069,590 2,069,590 2,136,523 ( 66,933) 2,069,215 5,000 5,000 4,200 800 120,869 - - - - 5,489,912 7,027,003 7,027,003 7,025,723 1,280 12,244,996 Excess (Deficiency) of Revenues over Expenditures ( 144,003) ( 144,003) ( 216,307) ( 74,864) ( 5,659,533) OTHER FINANCING SOURCES (USES) Issuance of refunding debt - - - - 5,225,000 Premiums from issuance of debt - - - - 336,901 Total Other Financing Sources (Uses) - - - - 5,561,901 NET CHANGE IN FUND BALANCE ( 144,003) ( 144,003) ( 216,307) ( 72,304) ( 97,632) FUND BALANCE - BEGINNING 1,002,226 1,002,226 1,002,226 - 1,099,858 FUND BALANCE - ENDING $ 858,223 $ 858,223 $ 785,919 $( 72,304) $ 1,002,226 70 CITY OF SCHERTZ, TEXAS COMPARATIVE BALANCE SHEETS CAPITAL PROJECTS FUND SEPTEMBER 30, 2020 (WITH COMPARATIVE TOTALS FOR 2019) 71 2020 2019 ASSETS Cash and cash equivalents $ 10,677,080 $ 34,120 Investments - 14,147,499 Accounts receivable - 52,248 Total Assets 10,677,080 14,233,867 LIABILITIES Accounts payable 428,387 825,769 Retainage payable 111,135 293,788 Total Liabilities 539,522 1,119,557 FUND BALANCES Restricted for: Capital improvement 6,065,616 13,114,310 Total Fund Balances 6,065,616 13,114,310 Total Liabilities and Fund Balance $ 6,605,138 $ 14,233,867 71 THIS PAGE LEFT BLANK INTENTIONALLY CITY OF SCHERTZ, TEXAS COMPARATIVE SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE CAPITAL PROJECTS FUND FOR THE YEAR ENDED SEPTEMBER 30, 2020 (WITH COMPARTIVE TOTALS FOR THE YEAR ENDED 2019) 2020 2019 REVENUES Intergovernmental $ - $ 91,913 Investment earnings 154,977 382,850 Miscellaneous 132,901 - Total Revenues 287,878 474,763 EXPENDITURES Capital outlay 7,837,991 8,308,326 Debt service: Bond issue costs - 68,213 Total Expenditures 7,837,991 8,376,539 Excess (Deficiency) of Revenues Over Expenditures ( 7,550,113) ( 7,901,776) OTHER FINANCING SOURCES (USES) Issuance of debt - 4,620,000 Premiums from issuance of debt - 303,214 Transfers in 4,500,000 117,632 Transfers out - ( 81,525) Total Other Financing Sources (Uses) 4,500,000 4,959,321 NET CHANGE IN FUND BALANCE ( 3,050,113) ( 2,942,455) FUND BALANCES - BEGINNING 13,187,671 16,056,765 FUND BALANCES - ENDING $ 10,137,558 $ 13,114,310 72 CITY OF SCHERTZ, TEXAS COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2020 FUND BALANCES Restricted for: Tourism development 2,116,464 - - - Tree mitigation - - 463,228 - Parks - 2921236 - - Police forfeiture - - - 32,560 Roadways - - - - Library - - - - Historical committee - - - - Total Fund Balances 2,116,464 292,236 463,228 32,560 Total Liabilities and Fund Balances $ 2,116,464 $ 292,236 $ 464,828 $ 32,560 W Special Revenue Funds Hotel Occupancy Park Tree Treasury Fund Fund Mitigation Forfeitures ASSETS Cash and cash equivalents $ 2,084,939 $ 292,236 $ 464,828 $ 32,560 Accounts receivable, net of allowance 31,525 - - - Total Assets 2,116,464 292,236 464,828 32,560 LIABILITIES Accounts payable - - 1,600 - Total Liabilities - - 1,600 - FUND BALANCES Restricted for: Tourism development 2,116,464 - - - Tree mitigation - - 463,228 - Parks - 2921236 - - Police forfeiture - - - 32,560 Roadways - - - - Library - - - - Historical committee - - - - Total Fund Balances 2,116,464 292,236 463,228 32,560 Total Liabilities and Fund Balances $ 2,116,464 $ 292,236 $ 464,828 $ 32,560 W - 2,116,464 - - 463,228 - - - - - 292,236 210,453 12,774 - - - 255,787 - - - - 937,627 937,627 75,044 - - 75,044 - - - 13,705 - 13,705 210,453 12,774 75,044 13,705 937,627 4,154,091 $ 210,453 $ 12,774 $ 75,103 $ 13,705 $ 937,627 $ 4,155,750 74 Capital Special Revenue Funds Projects Fund Library Historical Capital Total Nonmajor Justice State Advisory Committee Recovery Governmental Forfeitures Forfeitures Board Fund Roadways Funds $ 210,453 $ 12,774 $ 75,103 $ 13,705 $ 937,627 $ 4,124,225 - - - - - 31,525 210,453 12,774 75,103 13,705 937,627 4,155,750 - - 59 - - 1,659 - - 59 - - 1,659 - 2,116,464 - - 463,228 - - - - - 292,236 210,453 12,774 - - - 255,787 - - - - 937,627 937,627 75,044 - - 75,044 - - - 13,705 - 13,705 210,453 12,774 75,044 13,705 937,627 4,154,091 $ 210,453 $ 12,774 $ 75,103 $ 13,705 $ 937,627 $ 4,155,750 74 CITY OF SCHERTZ, TEXAS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2020 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 Revenue Over Expenditures OTHER FINANCING SOURCES (USES) Transfer in Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCES - BEGINNING FUND BALANCES - ENDING SDecial Revenue Funds Hotel Occupancy Park Tree Treasury Fund Fund Mitigation Forfeiture $ 268,946 $ - $ - $ - - 4,000 52,427 - - - - 4,400 26,224 3,325 5,569 - 95,954 - - - 5,760 28,674 - 74,428 - - - 223,189 - - - 393,571 5,760 28,674 - ( 98,401) 1,566 29,822 4,400 ( 98,401) 1,566 29,822 4,400 2,214,865 290,670 433,406 28,160 $ 2,116,464 $ 292,236 $ 463,228 $ 32,560 - - - 169 - 96,123 42,063 - - - - 42,063 - - - - - 34,434 10,456 - - 10,456 - - - - - 74,428 40,465 - - - - 263,654 82,528 - 10,456 169 - 521,158 ( 44,337) 7,665 ( 398) ( 126) 852,174 752,365 169 - 169 ( 44,337) 7,665 Capital 43 852,174 Special Revenue Funds Projects Fund Library Historical Capital Total Nonmajor Justice State Advisory Committee Recovery Governmental Forfeitures Forfeitures Board Fund Roadways Funds $ 210,453 $ 12,774 $ 75,044 $ $ - $ - $ - $ - $ - $ 268,946 - - - - - 56,427 - - 9,204 43 850,201 859,448 35,444 7,665 - - - 47,509 2,747 - 850 - 1,973 40,688 - - - 169 - 96,123 42,063 - - - - 42,063 - - - - - 34,434 10,456 - - 10,456 - - - - - 74,428 40,465 - - - - 263,654 82,528 - 10,456 169 - 521,158 ( 44,337) 7,665 ( 398) ( 126) 852,174 752,365 169 - 169 ( 44,337) 7,665 ( 398) 43 852,174 752,534 254,790 5,109 75,442 13,662 85,453 3,401,557 $ 210,453 $ 12,774 $ 75,044 $ 13,705 $ 937,627 $ 4,154,091 C CITY OF SCHERTZ, TEXAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL HOTEL OCCUPANCY FUND REVENUES Occupancy tax Investment earnings Miscellaneous Total Revenues EXPENDITURES Current: General government Administration Capital outlay Total Expenditures NET CHANGE IN FUND BALANCE FUND BALANCE - BEGINNING FUND BALANCE - ENDING FOR THE YEAR ENDED SEPTEMBER 30, 2020 (WITH COMPARATIVE ACTUAL TOTALS FOR 2019) Original Final Budget Budget Variance With 2020 Final Budget 2019 Actual Positive Actual Amounts (Negative) Amounts $ 500,000 $ 500,000 $ 268,946 $( 231,054) $ 514,679 53,000 53,000 26,224 ( 26,776) 48,015 - - - - 3,071 553,000 553,000 295,170 ( 257,830) 565,765 181,466 181,466 95,954 85,512 130,265 74,428 74,428 74,428 - 67,582 250,000 250,000 223,189 26,811 - 505,894 505,894 393,571 112,323 197,847 47,106 47,106 ( 98,401) ( 145,507) 367,918 2,214,865 2,214,865 2,214,865 - 1,846,947 $ 2,261,971 $ 2,261,971 $ 2,116,464 $( 145,507) $ 2,214,865 EN CITY OF SCHERTZ, TEXAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL PARK FUND REVENUES Licenses and permits Investment earnings Investment earnings Total Revenues EXPENDITURES Current: Parks and recreation Capital outlay Total Expenditures NET CHANGE IN FUND BALANCE FUND BALANCE - BEGINNING FUND BALANCE - ENDING FOR THE YEAR ENDED SEPTEMBER 30, 2020 (WITH COMPARATIVE ACTUAL TOTALS FOR 2019) Original Final Budget Budget Variance With 2020 Final Budget 2019 Actual Positive Actual Amounts (Negative) Amounts $ 70,000 $ 70,000 $ 4,000 $( 66,000) $ 11,000 8,000 8,000 3,325 ( 4,675) 7,600 - - 1 1 7,600 78,000 78,000 7,326 ( 70,674) 18,600 - - 5,760 ( 5,760) 15,250 177,000 177,000 - 177,000 86,841 177,000 177,000 5,760 171,240 102,091 ( 99,000) ( 99,000) 1,566 100,566 ( 83,491) 290,670 290,670 290,670 - 374,161 $ 191,670 $ 191,670 $ 292,236 $_____100,566 $______290,670 78 CITY OF SCHERTZ, TEXAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL TREE MITITGATION FUND REVENUES Licenses and permits Investment earnings Miscellaneous Total Revenues EXPENDITURES Current: Parks and recreation Total Expenditures NET CHANGE IN FUND BALANCE FUND BALANCE - BEGINNING FUND BALANCE - ENDING FOR THE YEAR ENDED SEPTEMBER 30, 2020 (WITH COMPARATIVE ACTUAL TOTALS FOR 2019) 79 Variance With 2020 Final Budget 2019 Original Final Actual Positive Actual Budget Budget Amounts (Negative) Amounts $ 70,000 $ 70,000 $ 52,427 $( 17,573) $ 19,162 8,750 8,750 5,569 ( 3,181) 10,306 - - 500 500 - 78,750 78,750 58,496 ( 20,254) 29,468 - 75,000 28,674 46,326 27,867 - 75,000 28,674 46,326 27,867 78,750 3,750 29,822 26,072 1,601 433,406 433,406 433,406 - 431,805 $ 512,156 $ 437,156 $____463,228 $_____26_,072 $____433,406 79 CITY OF SCHERTZ, TEXAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE TREASURY FORFEITURES FUND FOR THE YEAR ENDED SEPTEMBER 30, 2020 (WITH COMPARATIVE TOTALS FOR 2019) REVENUES Fines and fees Investment earnings Total Revenues EXPENDITURES Capital outlay Total Expenditures NET CHANGE IN FUND BALANCE FUND BALANCE - BEGINNING FUND BALANCE - ENDING 80 2020 2019 $ 4,400 $ 900 206 CITY OF SCHERTZ, TEXAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL JUSTICE FORFEITURES FUND REVENUES Fines and fees Investment earnings Total Revenues EXPENDITURES Current: Public safety Capital outlay Total Expenditures NET CHANGE IN FUND BALANCE FUND BALANCE - BEGINNING FUND BALANCE - ENDING FOR THE YEAR ENDED SEPTEMBER 30, 2020 (WITH COMPARATIVE ACTUAL TOTALS FOR 2019) Original Final Budget Budget 42,063 { 42,063) 50,306 40,465 { 40,465) 39,144 82,528 { 82,528) 89,450 ( 44,337) ( 44,337) ( 59,341) 254,790 254,790 254,790 - 314,131 $ 254,790 $ 254,790 $ 210,453 ${ 44,337) $ 314,131 81 Variance With 2020 Final Budget 2019 Actual Positive Actual Amounts (Negative) Amounts $ 35,444 $ 35,444 $ 23,509 2,747 2,747 6,600 38,191 38,191 30,109 42,063 { 42,063) 50,306 40,465 { 40,465) 39,144 82,528 { 82,528) 89,450 ( 44,337) ( 44,337) ( 59,341) 254,790 254,790 254,790 - 314,131 $ 254,790 $ 254,790 $ 210,453 ${ 44,337) $ 314,131 81 CITY OF SCHERTZ, TEXAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE STATE FORFEITURES FUND FOR THE YEAR ENDED SEPTEMBER 30, 2020 (WITH COMPARATIVE TOTALS FOR 2019) REVENUES Fines and fees Investment earnings Total Revenues EXPENDITURES Current: Public safety Total Expenditures NET CHANGE IN FUND BALANCE FUND BALANCE - BEGINNING FUND BALANCE - ENDING 82 2020 2019 $ 7,665 $ 2,548 8,773 - 8,773 7,665 ( 61225) 5,109 11,334 $ 12,774 $ 5,109 CITY OF SCHERTZ, TEXAS SCHEDULE OF REVENUES, EXPEDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL LIBRARY ADVISORY BOARD FOR THE YEAR ENDED SEPTEMBER 30, 2020 (WITH COMPARATIVE ACTUAL TOTALS FOR 2019) EXPENDITURES Current: Cultural 21,200 21,200 10,456 10,744 19,664 Total Expenditures 21,200 21,200 10,456 10,744 19,664 NET CHANGE IN FUND BALANCE 550 550 ( 398) Variance With 3,561 FUND BALANCE - BEGINNING 2020 Final Budget 2019 - Original Final Actual Positive Actual $ 75,992 $ Budget Budget Amounts (Negative) Amounts REVENUES Service fees $ 20,000 $ 20,000 $ 9,204 $( 10,796) $ 21,365 Investment earnings 1,550 1,550 850 ( 700) 1,853 Miscellaneous 200 200 4 ( 196) 7 Total Revenues 21,750 21,750 10,058 ( 11,692) 23,225 EXPENDITURES Current: Cultural 21,200 21,200 10,456 10,744 19,664 Total Expenditures 21,200 21,200 10,456 10,744 19,664 NET CHANGE IN FUND BALANCE 550 550 ( 398) ( 948) 3,561 FUND BALANCE - BEGINNING 75,442 75,442 75,442 - 71,881 FUND BALANCE - ENDING $ 75,992 $ 75,992 $ 75,044 $( 948) $ 75,442 83 CITY OF SCHERTZ, TEXAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL HISTORICAL COMMITTEE FUND FOR THE YEAR ENDED SEPTEMBER 30, 2020 (WITH COMPARATIVE ACTUAL TOTALS FOR 2019) REVENUES Sale of merchandise Miscellaneous Total Revenues EXPENDITURES Current: General government Total Expenditures Excess of Revenues Over Expenditures OTHER FINANCING SOURCES (USES) Original Final Budget Budget $ 1,000 $ 1,000 $ 1,000 1,000 Variance With 2020 Final Budget 2019 Actual Positive Actual Amounts (Negative) Amounts 43 $( 957) $ 708 - 17 43 ( 957) 725 11,750 11,750 169 11,581 2,871 11,750 11,750 169 11,581 2,871 ( 10,581) 2,871 ( 10,750) ( 10,750) ( 126) 10,624 ( 2,146) Transfers in 10,750 10,750 169 ( 10,581) 2,871 Total Other Financing Sources (Uses) 10,750 10,750 169 ( 10,581) 2,871 NET CHANGE IN FUND BALANCE - - 43 43 725 FUND BALANCE - BEGINNING 13,662 13,662 13,662 - 12,937 FUND BALANCE - ENDING $ 13,662 $ 13,662 $ 13,705 $ 43 $ 13,662 84 CITY OF SCHERTZ, TEXAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE CAPITAL RECOVERY ROADWAYS FOR THE YEAR ENDED SEPTEMBER 30, 2020 (WITH COMPARATIVE TOTALS FOR 2019) REVENUES Service fees Investment earnings Total Revenues OTHER FINANCING SOURCES (USES) Transfers out Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCE FUND BALANCE - BEGINNING FUND BALANCE - ENDING 85 2020 2019 $ 850,201 $ 138,920 1,973 1,451 852,174 140,371 ( 116,040) ( 116,040) 852,174 24,331 85,453 61,122 $ 937,627 $ 85,453 STATISTICAL SECTION THIS PAGE LEFT BLANK INTENTIONALLY STATISTICAL SECTION (Unaudited) This part of the City of Schertz, Texas Comprehensive 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. Contents �Z Financial Trends These schedules contain trend information to help the reader understand how the City's financial performance and well -being have changed over time. 86-95 Revenue Capacity These schedules contain information to help the reader assess the City's most significant local revenue sources. 96- 104 Debt Capacity 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. 105 - 110 Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place. 111-114 Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides and the activities it performs. 115- 120 CITY OF SCHERTZ, TEXAS NET POSITION BY COMPONENT LAST TEN FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) (UNAUDITED) Business -type activities Net investment in capital assets $ Fiscal Year $ 50,161,157 $ 2011 2012 2013 2014 Governmental activities - - Net investment in capital assets $ 55,415,699 $ 56,616,809 $ 57,543,618 $ 62,792,671 Restricted 2,089,971 1,917,098 7,788,354 10,401,728 Unrestricted 7,370,101 8,907,326 6,645,418 8,613,239 Total Governmental Activities Net Position $ 64,875,771 $ 67,441,233 $ 71,977,390 $ 81,807,638 Business -type activities Net investment in capital assets $ 51,838,589 $ 50,161,157 $ 53,071,836 $ 53,674,437 Restricted - - - - Unrestricted 7,441,722 11,577,645 11,902,282 16,450,988 Total Business -Type Activities Net Position $ 59,280,311 $ 61,738,802 $ 64,974,118 $ 70,125,425 Primary government Net investment in capital assets $ 107,254,288 $ 106,777,966 $ 110,615,454 $ 116,467,108 Restricted 2,089,971 1,917,098 7,788,354 10,401,728 Unrestricted 14,811,823 20,484,971 18,547,700 25,064,227 Total Primary Government Net Position $ 124,156,082 $ 129,180,035 $ 136,951,508 $ 151,933,063 86 TABLE 1 Fiscal Year 2015 2016 2017 2018 2019 2020 $ 68,125,738 $ 74,237,004 $ 84,537,238 $ 89,266,885 $ 89,869,766 $ 88,959,102 13,343,280 17,095,325 20,437,116 23,391,047 28,088,355 28,664,438 1,640,519 2,231,341 1,673,567 2,351,236 2,920,717 4,157,801 $ 83,109,537 $ 93,563,670 $ 106,647,921 $ 115,009,168 $ 120,878,838 $ 121,781,341 $ 59,625,205 $ 64,210,231 $ 70,361,035 $ 64,871,629 $ 68,271,075 $ 75,969,319 - - 10,565,463 12,626,526 13,232,638 15,071,599 14,243,922 15,737,470 20,781,291 20,870,671 33,254,008 30,570,717 $ 73,869,127 $ 79,947,701 $ 101,707,789 $ 98,368,826 $ 114,757,721 $ 121,611,635 $ 127,750,943 $ 138,447,235 $ 154,898,273 $ 154,138,514 $ 158,140,841 $ 164,928,421 13,343,280 17,095,325 20,437,116 23,391,047 41,320,993 43,736,037 15,884,441 17,968,811 22,454,858 35,848,433 36,174,725 34,728,518 $ 156,978,664 $ 173,511,371 $ 197,790,247 $ 213,377,994 $ 235,636,559 $ 243,392,976 87 CITY OF SCHERTZ, TEXAS CHANGE IN NET POSITION LAST TEN FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) (UNAUDITED) Expenses Governmental activities: General government Public safety Public environment Parks and recreation Cultural Health Administration Interest and other fees Total Governmental Activities Expenses Fiscal Year 2011 2012 2013 2014 $ 8,112,954 $ 7,802,092 $ 7,066,087 $ 6,958,530 8,390,740 9,103,676 9,567,595 10,025,703 3,152,119 3,586,087 3,622,834 3,740,538 1,673,098 1,584,605 1,807,559 1,807,136 876,339 916,967 907,676 870,159 374,516 357,658 344,647 407,114 1,321,055 1,117,044 1,180,656 1,942,312 2,251,472 2,302,912 3,340,951 2,352,856 26,152,293 26,771,041 27,838,005 28,104,348 Business -type activities: Water and sewer 15,280,871 16,349,967 16,954,871 17,762,116 EMS 3,659,031 3,758,425 3,959,445 4,268,125 Total Business -Type Activities Expenses 18,939,902 20,108,392 20,914,316 22,030,241 Total Primary Government Expenses Program Revenues Governmental activities: Charges for services: General government Public safety Public environment Parks and recreation Cultural Health Operating grants and contributions Capital grants and contributions Total Governmental Activities Program Revenues Business -type activities: Charges for services: Water and sewer EMS Capital grants and contributions Total Business -Type Activities Program Revenues Total Primary Government Program Revenues 45,092,195 1,495,563 2,815,029 524,443 228,242 39,743 717,105 2,998,115 46,879,433 48,752,321 50,134,589 2,286,488 2,216,385 541,512 279,267 36,746 764,997 1,178,573 2,230,800 2,516,547 721,222 305,932 38,149 234,084 1,531,740 1,974,637 2,536,476 917,639 309,897 32,429 220,264 5,756,456 8,818,240 7,303,968 7,578,474 11,747,798 17,073,075 17,411,568 17,696,327 19,147,872 3,564,852 3,561,114 4,459,600 4,533,753 2,175,889 828,853 1,301,235 2,809,110 22,813,816 21,801,535 23,457,162 26,490,735 31,632,056 29,105,503 31,035,636 38,238,533 Net(expense)revenue: Governmental activities ( 17,334,053) ( 19,467,073) ( 20,259,531) ( 16,356,550) Business -type activities 3,873,914 1,693,143 2,542,846 4,460,494 Total Primary Government Net Expense ( 13,460,139) ( 17,773,930) ( 17,716,685) ( 11,896,056) 88 TABLE 2 Fiscal Year 2015 2016 2017 2018 2019 2020 $ 6,443,227 $ 10,836,712 3,876,644 2,164,604 892,194 470,468 1,845,877 2,226,635 28,756,361 18,440,959 4,719,526 23,160,485 51,916,846 1,840,547 2,603,476 794,003 325,178 26,744 336,252 5,509,530 6,557,778 $ 6,253,926 $ 7,421,918 $ 6,534,013 $ 10,310,363 12,141,968 13,061,120 13,899,278 15,448,886 16,575,191 4,147,653 4,460,540 4,930,723 5,495,192 8,825,099 2,034,964 2,859,974 2,707,292 3,022,278 3,012,134 954,871 1,004,747 1,042,085 1,119,650 1,089,564 570,204 776,494 724,780 516,890 596,288 1,954,276 3,052,102 3,067,983 3,853,255 3,419,407 2,240,783 2,355,714 2,125,687 2,196,180 2,028,065 30,602,497 33,824,617 35,919,746 38,186,344 45,856,111 18,964,445) ( 17,317,357) ( 24,297,877) 20,269,111 21,346,078 23,579,854 25,608,390 24,349,219 5,004,110 6,006,178 6,110,407 6,529,631 6,051,296 25,273,221 27,352,256 29,690,261 32,138,021 30,400,515 55,875,718 61,176,873 65,610,007 70,324,365 76,256,626 1,507,252 874,737 1,013,698 947,538 836,246 2,415,537 4,131,548 4,104,911 3,177,329 3,276,129 - - - 138,920 850,201 788,727 544,460 640,231 484,495 331,174 326,079 330,412 313,668 311,575 299,944 30,308 29,742 27,930 21,101 26,304 342,485 552,878 776,942 692,042 2,113,673 6,227,664 10,043,483 4,744,489 1,319,793 531,096 11.435.730 11.638.052 16.507.260 11.621.869 7.092.793 8.264.767 20,700,369 22,003,794 25,390,713 27,099,237 27,333,475 29,709,279 4,415,126 5,921,223 6,366,894 6,092,559 6,596,618 6,114,891 4,158,552 2,831,126 6,111,474 3,132,348 1,975,524 292,408 29,274,047 30,756,143 37,869,081 36,324,144 35,905,617 36,116,578 40,709,777 42,394,195 54,376,341 47,946,013 42,998,410 44,381,345 ( 17,320,631) ( 18,964,445) ( 17,317,357) ( 24,297,877) ( 31,093,551) ( 37,591,344) 6,113,562 5,482,922 10,516,825 6,633,883 3,767,596 5,716,063 ( 11,207,069) ( 13,481,523) ( 6,800,532) ( 17,663,994) ( 27,325,955) ( 31,875,281) 89 CITY OF SCHERTZ, TEXAS CHANGE IN NET POSITION LAST TEN FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) (UNAUDITED) Source: City financial statements 90 Fiscal Year 2011 2012 2013 2014 General Revenues and Other Changes in Net Position Governmental activities: Taxes Ad valorem $ 10,280,768 $ 11,298,204 $ 12,359,146 $ 12,794,172 Sales 7,054,394 7,968,212 9,637,097 10,553,382 Franchise fees 1,542,046 1,647,712 1,681,079 2,073,162 Hotel /motel 391,181 470,290 503,267 552,570 Mixed drink 33,630 28,586 30,421 39,917 Bingo 2,173 - - - Investment income 48,235 60,265 54,270 43,279 Miscellaneous 316,840 621,560 505,268 180,316 Transfers 84,235 ( 62,294) 25,140 ( 50,000) Total Governmental Activities 19,753,502 22,032,535 24,795,688 26,186,798 Business -type activities: Interest and investment earnings 37,950 36,409 53,089 31,810 Miscellaneous 457,094 666,645 664,521 609,003 Transfers ( 84,235) 62,294 ( 25,140) 50,000 Total Business -Type Activities 410,809 765,348 692,470 690,813 Total Primary Government 20,164,311 22,797,883 25,488,158 26,877,611 Change in Net Position Governmental activities 2,419,449 2,565,462 4,536,157 9,830,248 Business -type activities 4,284,723 2,458,491 3,235,316 5,151,307 Total Primary Government $ 6,704,172 $ 5,023,953 $ 7,771,473 $ 14,981,555 Source: City financial statements 90 TABLE 2 Fiscal Year 2015 2016 2017 2018 2019 2020 $ 14,139,037 10,315,125 2,263,783 563,734 43,656 56,820 197,881 ( 42,235) 27,537,801 47,728 344,731 42,235 434,694 27,972,495 10,217,170 6,548,256 $ 16,765,426 $ 15,131,997 10,921,489 2,250,815 544,871 43,073 187,847 309,275 29,211 29.418.578 102,642 522,221 ( 29,211) 595,652 $ 16,166,006 10, 844, 503 2,208,373 499,466 42,699 448,408 182,754 9.399 30,401,608 211,466 475,733 ( 9,399) 677,800 30,014,230 31,079,408 10,454,133 13,084,251 6,078,574 11,194,625 $ 16,532,707 $ 24,278,876 91 $ 17,018,950 12,668,555 2,393,182 520,424 43,395 909,985 283,496 19.186 33,857,173 532,367 453,374 ( 19,186) 966,555 34,823,728 9,559,296 7,600,438 $ 17,159,734 $ 19,151,005 $ 12,506,879 2,357,150 514,679 60,518 1,470,258 984,257 ( 81,525) 36,963,221 855,216 267,788 81,525 1,204,529 19, 844, 912 14,432,152 2,305,225 268,946 70,139 804,674 767,799 38,493,847 431,555 706,296 1, 137,851 38,167,750 39,631,698 5,869,670 902,503 4,972,125 6,853,914 $ 10,841,795 $ 7,756,417 CITY OF SCHERTZ, TEXAS FUND BALANCES OF GOVERNMENTAL FUNDS Committed Fund Balance: Capital improvement Total Nonspendable Fund Balance Assigned Fund Balance: Property replacement Special events Capital improvement Historical Committee Subsequent year's budget Youth activities Total Assigned Fund Balance Unassigned Fund Balance 202,723 93,447 162,113 9,940 468,223 1,899,105 322,656 92,555 243,546 11,090 1 . 11 �� 165,000 456,034 99,770 145,167 700,971 4,206,734 31,718 31,718 694,916 31, 177 / GV,VJJ 5,587,262 Total Governmental Funds $ 18,234,339 $ 27,154,580 $ 30,339,720 $ 27,418,729 Source: Balance Sheets - Governmental Funds in City's CAFRs. 92 LAST TEN FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) (UNAUDITED) 2011 2012 2013 2014 Nonspendable Fund Balance: Inventory $ 43,504 $ 63,556 $ 50,768 $ 88,518 Prepaid items - 2,367 754,443 21,735 Note receivable 120,080 120,080 120,080 - Total Nonspendable Fund Balance 163,584 186,003 925,291 110,253 Restricted Fund Balance: Police and public safety 403,799 338,118 496,890 529,264 Municipal court 459,244 527,513 646,422 628,459 PEG capital fees 317,453 409,870 456,175 489,509 Capital improvement 10,219,300 17,104,595 15,360,800 9,600,028 Debt service 117,250 227,674 517,199 625,435 Tourism development 301,517 390,561 470,250 501,996 Tree mitigation 173,999 217,600 157,659 359,205 Parks 84,329 90,718 136,647 304,655 Historical Committee & library 231,686 65,409 77,554 78,098 Economic Development Corporation 3,394,850 4,366,005 6,022,128 7,792,578 Animal control - - - - Veterans - - - - Scholarship - - - 54,176 Total Restricted Fund Balance 15,703,427 23,738,063 24,341,724 20,963,403 Committed Fund Balance: Capital improvement Total Nonspendable Fund Balance Assigned Fund Balance: Property replacement Special events Capital improvement Historical Committee Subsequent year's budget Youth activities Total Assigned Fund Balance Unassigned Fund Balance 202,723 93,447 162,113 9,940 468,223 1,899,105 322,656 92,555 243,546 11,090 1 . 11 �� 165,000 456,034 99,770 145,167 700,971 4,206,734 31,718 31,718 694,916 31, 177 / GV,VJJ 5,587,262 Total Governmental Funds $ 18,234,339 $ 27,154,580 $ 30,339,720 $ 27,418,729 Source: Balance Sheets - Governmental Funds in City's CAFRs. 92 TABLE 3 2015 2016 2017 2018 2019 2020 $ 101,084 $ 107,529 $ 98,263 $ 94,876 $ 117,009 $ 99,871 16,000 112,974 - - 14,916 14,916 117,084 220,503 98,263 94,876 131,925 114,787 494,337 555,722 514,931 454,773 514,152 481,879 683,558 714,609 728,350 728,350 823,451 823,452 509,535 577,590 638,506 723,353 723,353 807,140 8,924,587 11,665,693 16,915,997 16,117,887 13,199,763 7,003,243 847,178 1,311,577 1,450,082 1,099,858 1,002,226 785,919 848,969 1,186,062 1,503,873 1,846,947 2,214,865 2,116,464 331,149 340,386 331,913 431,805 433,406 463,228 341,551 441,606 367,812 374,161 290,670 292,236 76,787 75,420 77,137 84,818 89, 104 88,749 9,821,747 12,227,179 15,069,421 17,811,968 21,777,256 21,018,626 - 18,667 35,660 35,660 33,408 33,408 - 4,985 4,796 4,796 2,109 2,109 60,944 63,048 77,458 84,989 101,673 104,156 22,940,342 29,182,544 37,715,936 39,799,365 41,205,436 34,020,609 - 342,519 454,376 454,376 687,779 4,759,722 - 342,519 454,376 454,376 687,779 4,759,722 785,005 752,503 854,198 854,198 891,321 891,319 6,657 6,743 - - - - - - - 2,226,359 4,689,305 1,081,160 791,662 759,246 854,198 3,080,557 5,580,626 1,972,479 7,280,240 8,509,467 9,976,169 12,548,013 9,228,612 10,126,057 $ 31,129,328 $ 39,014,279 $ 49,098,942 $ 55,977,187 $ 56,834,378 $ 50,993,654 w CITY OF SCHERTZ, TEXAS CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) (UNAUDITED) 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 Payment to refund agent Total Expenditures Excess of Revenues Over (Under) Expenditures Other Financing Sources (Uses) Bond & debt issuances Refunding bond issuance Premium (discount) on bond issue Payment to refund agent Transfer in Transfer out Net Other Financing Sources (Uses) Net Change in Fund Balances Debt Service as a Percentage of Noncapital Expenditures 2011 2012 2013 2014 $ 19,309,675 $ 21,401,991 $ 24,181,863 $ 26,021,730 1,776,292 1,363,461 1,609,954 1,805,047 1,645,489 1,547,007 1,739,387 1,763,964 1,452,610 2,027,613 1,927,744 1,750,311 1,216,211 1,000,413 492,332 221,769 603,498 969,921 767,110 671,731 26,003,775 28,310,406 30,718,390 32,234,552 7,164,667 7,094,834 6,311,276 5,981,439 7,885,119 8,690,849 9,113,840 9,409,894 846,150 976,327 951,528 1,012,607 1,195,171 1,398,692 1,412,329 1,338,232 937,611 845,124 840,595 815,691 360,746 346,318 341,961 394,918 1,506,831 1,249,557 1,289,078 2,270,041 2,956,511 1,299,843 3,277,397 8,000,467 2,371,070 2,704,898 3,217,325 3,695,597 2,066,221 2,313,510 2,381,171 2,108,610 244,237 254,971 31,750 165,650 27,534,334 27,174,923 29,168,250 35,193,146 ( 1,530,559) 8,206,572 283,000 348,846 ( 264,611) 8,573,807 $ 7,043,248 17.4% 1,135,483 14,370,000 175,473 ( 6,698,421) 139,635 ( 201,929) 7,784.758 $ 8,920,241 19.5% 1,550,140 ( 2,958,594) 1,635,000 788,084 ( 788,084) 1,635,000 $ 3,185,140 21.6% 8,583,715 686,137 ( 9,182,250) 1,243,833 ( 1,293,832) 37,603 $( 2,920,991) Source: Statement of Revenues, Expenditures, and Changes in Fund Balance for Governmental Funds. 94 21.3% 2015 2016 2017 2018 2019 $ 27,348,297 $ 28,865,727 $ 29,720,578 $ 32,632,702 $ 34,590,008 $ 1,731,302 1,493,336 2,540,045 2,557,056 1,635,461 1,797,151 1,789,321 2,132,299 2,159,193 2,070,293 1,534,588 1,441,474 1,217,621 1,049,989 953,614 393,607 401,494 397,073 609,131 1,057,681 689,805 1,741,436 1,897,153 1,761,285 2,454,515 33,494,750 35,732,788 37,904,769 40,769,356 42,761,572 TABLE 4 rS I 36,802,913 1,807,264 2,583,598 880,657 951,604 1,572,473 44,598,509 5,582,441 5,657,998 5,394,918 6,327,133 5,881,647 10,364,369 10,158,401 11,048,767 11,870,636 12,728,222 13,985,443 15,366,593 952,663 1,007,326 1,128,979 1,136,052 1,112,041 1,270,894 1,658,197 1,528,356 1,885,915 1,697,872 2,393,487 2,102,083 821,146 869,162 921,870 955,153 1,018,109 1,044,891 404,008 480,175 672,934 628,054 498,871 589,616 2,056,646 2,015,573 2,912,855 3,015,239 3,795,233 3,353,634 2,314,668 10,192,398 5,492,196 7,708,625 9,083,572 9,276,886 3,918,008 4,040,975 4,473,174 4,744,116 2,112,746 1,896,911 2,113,679 2,099,190 7,992 449,358 214,280 129,417 G 7,7V V,71V J7,1VV,777 J /,VV 1,`tJV `T 1,1V7,V /J 4,565,000 2,069,215 189,082 5,489,912 50,081,612 4,929,544 2,136,523 4,200 J V,`TJ 7, GJJ 3,507,834 ( 3,454,211) 823,333 ( 399,717) ( 7,320,040) ( 5,840,724) 245,000 10,750,000 8,870,000 4,887,829 4,620,000 - - 4,185,000 - 6,035,000 5,225,000 - - 590,432 381,931 269,212 640,115 - - ( 4,215,482) - ( 6,159,623) - - 989,120 863,583 438,803 777,487 120,503 4,500,169 ( 1,031,355) ( 834,371) ( 429,404) ( 758,302) ( 202,028) ( 4,500,169) 202,765 11,339,162 9,261,330 5,051,603 10,403,590 - $ 3,710,599 $ 7,884,951 $ 10,084,663 $ 4,651,886 $ 3,083,550 $( 5,840,724) 21.3% 20.5% 20.4% 22.2% 17.3% 16.2% m CITY OF SCHERTZ, TEXAS GOVERNMENTAL FUNDS TAX REVENUES BY SOURCE LAST TEN FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) (UNAUDITED) Fiscal Property Sales & Use Franchise Year Tax Tax Tax Mixed Beverage 2011 $ 10,286,251 $ 7,054,394 $ 1,542,046 $ 33,630 2012 11,287,191 7,968,212 1,647,712 28,586 2013 12,329,999 9,637,097 1,681,079 30,421 2014 12,802,668 10,553,382 2,073,162 39,917 2015 14,161,999 10,315,125 2,263,783 43,553 2016 15,105,480 10,921,489 2,250,815 43,072 2017 16,125,537 10,844,503 2,208,373 42,668 2018 17,007,148 12,668,555 2,393,182 43,384 2019 19,150,782 12,506,879 2,357,150 60,518 2020 19,726,451 14,432,152 2,305,225 70,139 M Hotel TABLE 5 Bingo Occupancy Total $ 2,173 $ 391,181 $ 19,309,675 - 470,290 21,401,991 - 503,267 24,181,863 31 552,570 26,021,730 103 563,734 27,348,297 1 544,870 28,865,727 31 499,466 29,720,578 11 520,424 32,632,704 24 514,679 34,590,032 24 268,946 36,802,937 97 Fiscal Year Ended September 30, 2020 2019 2018 2017 2016 2015 2014 2013 2012 3011 CITY OF SCHERTZ, TEXAS TOTAL WATER AND SEWER CONSUMPTION AND RATES LAST TEN FISCAL YEARS Total Water & Sewer Consumption (In Gallons) 1,982,664,200 1,622,930,500 1,583,312,400 1,583,462,300 1,509,250,000 1,472,948,300 1,543,351,600 1,550,039,700 1,604,952,300 1,676,323,900 98 Water& Sewer Base Rate ]8.15 37.15 35.61 34.]5 30.11 26.54 24.38 22.69 22.69 22.69 TABLE 6 Water &Sewer Initial Rate Per 1.000 Gallons 6.97 6.84 6.53 6.21 5.73 E43 5.17 4.84 4.84 4.75 CITY OF SCHERTZ, TEXAS TABLE 7 PRINCIPAL WATER AND SEWER CONSUMERS LAST TEN FISCAL YEARS 2020 2011 99 Total Percentage of Total Percentage of Water Total City Water Total City Consumption Water Consumption Water TAXPAYERS (In Gallons) Rank Consumption (in Gallons) Rank Consumption Caterpillar Inc. 169,429,600 1 8.55% Beck Readymix Concrete 117,018,500 2 5.90% 87,304,700 1 Sycamore Creek Apartments 113,447,200 3 5.72% 0.00% SA WFR Partners, LLC 84,070,100 4 4.24% 60,814,100 2 4.94% IPT San Antonio Logistics CTR 82,032,700 5 4.14% Sebastian Apartments 76,545,800 6 3.86% 35,899,500 3 2.92% Val Verde 6561 66,374,900 7 3.35% 27,988,600 5 Sysco / Cooling Tower 65,618,600 8 331% 0.00% Legacy Oaks Apartments 64,797,000 9 3.27% Pecan Grove TXLLC 61,635,700 10 3.11% 24,208,400 6 1.97% Wal -Mart Supermarket #3391 spk 23,437,100 7 1.90% Sedona Master Community, INC 29,971,700 4 2.43% Lowe's Home Improvement Warehouse 22,409,900 8 1.82% CCMA 22,123,100 9 1.80% 20,585,900 10 1.67% TOTAL 900,970,100 45.44% 354,743,000 19.45% Total City Water Consumption 1,982,664,200 1,231,376,600 99 CITY OF SCHERTZ, TEXAS TABLE 8 DIRECT AND OVERLAPPING PROPERTY TAX RATES LAST TEN FISCAL YEARS (UNAUDITED) 100 City Direct Rates Overlapping School Districts Schertz- Cibolo- Fiscal Basic Debt Universal Comal Year Rate Service Total City ISD ISD 2020 0.3496 0.1650 0.5146 1.4200 1.3200 2019 0.3497 0.1649 0.5146 1.4900 1.3200 2018 0.3248 0.1662 0.4910 1.4900 1.3900 2017 0.3168 0.1743 0.4911 1.4700 1.3900 2016 0.3159 0.1752 0.4911 1.4900 1.3900 2015 0.3164 0.1810 0.4974 1.4900 1.3900 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 0.1500 0.4493 1.4350 1.3700 Overlapping Counties Bexar Corral Guadalupe Community Fiscal Hospital River College Year County District Authority District County County 2020 0.2774 0.2762 0.0186 0.1492 0.3224 0.3319 2019 0.2774 0.2762 0.0186 0.1492 0.2952 0.3319 2018 0.2928 0.2762 0.0173 0.1492 0.3078 0.3799 2017 0.2928 0.2762 0.0173 0.1492 0.2928 0.3851 2016 0.2929 0.2762 0.0173 0.1492 0.2929 0.3851 2015 0.2929 0.2762 0.0178 0.1492 0.2929 0.3941 2014 0.2782 0.2762 0.0174 0.1492 0.2782 0.3999 2013 03052 0.2762 0.0174 0.1416 0.3504 0.4036 2012 03269 0.2762 0.0167 0.1416 0.3340 0.4036 2011 03269 0.2662 0.0160 0.1359 0.3130 0.3999 100 CITY OF SCHERTZ, TEXAS TABLE 9 PRINCIPAL PROPERTY OF TAX PAYERS CURRENT YEAR AND NINE YEARS AGO 2020 2011 101 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. $ 120,824,839 1 2.91% SYSCO San Antonio, Inc. 107,425,724 2 2.59% Amazon Com Services Inc 74,629,384 3 1.80% US Real Estate LP 59,963,917 4 1.44% Rebublic Beverage Company 58,711,000 5 1.41% $ 51,762,770 1 2.21% Colfin 2018 -3 Industrial Owner LLC 57,353,060 6 1.38% Shell US Gas and Power LLC 37,942,000 7 0.91% SA WFR Partners LLC 25,352,359 8 0.61% EM Limited Partnership 22,655,200 9 0.55% 9,857,599 9 0.42% GE Oil & Gas INC 19,515,060 10 0.47% AOH- Vantage at Schertz LLC 17,367,333 2 0.74% San Antonio MTA LP 17,153,935 3 0.73% Wal -Mart Real Estate Business Trust 14,529,843 4 0.62% City Bank 14,108,720 5 0.60% Eye Care Centers of America Inc. 13,293,056 6 0.57% H.E.Butt Grocery Co. 12,040,678 7 0.51% Atlantic Financial Group LTD 10,313,859 8 0.44% Lowe's Home Center Inc. 8,284,756 10 0.35% TOTALS $ 584,372,543 14.07% $ 168,712,549 7.20% TOTAL TAXABLE ASSESSED VALUE $ 4,152,459,607 $ 2,342,355,490 101 THIS PAGE LEFT BLANK INTENTIONALLY CITY OF SCHERTZ, TEXAS TABLE 10 PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS (UNAUDITED) 102 Collected Within Total Collections Fiscal Year Taxes Levied Fiscal Year of Levy Collections In To Date Ended for the % of Subsequent % of September 30, Fiscal Year Amount Levy Years Amount Levy 2020 $ 20,854,329 $ 20,758,493 99.54% 68,692 $ 20,827,185 99.87% 2019 19,922,568 19,825,244 99.51% 85,062 19,910,306 99.94% 2018 18,010,824 17,899,825 99.38% - 17,899,825 99.38% 2017 17,356,822 17,241,556 99.34% 72,675 17,314,231 99.75% 2016 16,238,180 16,160,248 99.52% 57,835 16,218,083 99.88% 2015 14,793,867 14,738,760 99.63% 44,730 14,783,490 99.93% 2014 13,383,759 13,297,258 99.35% 68,412 13,365,670 99.86% 2013 12,536,540 12,455,336 99.35% 71,432 12,526,768 99.92% 2012 11,239,572 11,159,974 99.29% 71,740 11,231,714 99.93% 2011 9,978,430 9,895,240 99.17% 74,770 9,970,010 99.92% 102 CITY OF SCHERTZ, TEXAS TAXABLE ASSESSED VALUE LAST TEN FISCAL YEARS (UNAUDITED) Fiscal Year Taxable Ended Value Residential Commercial September 30, January 1, Property Property 2020 2019 $ 3,004,686,341 $ 1,613,615,732 2019 2018 2,860,333,982 1,401,636,211 2018 2017 2,049,067,806 2,344,365,139 2017 2016 1,895,085,016 2,269,590,522 2016 2015 1,702,601,947 2,087,223,204 2015 2014 1,568,651,309 1,793,803,709 2014 2013 1,445,731,509 1,540,565,195 2013 2012 1,383,423,359 1,396,349,905 2012 2011 1,337,223,390 1,233,687,039 2011 2010 1,272,970,256 1,253,600,729 *Taxable Assessed Value is before any applicable freeze adjustments. Source: Bexar, Comal and Guadalupe County Appraisal Districts. 103 TABLE 11 104 Total Taxable Total Tax - Exempt Other Assessed Direct Property Property Value* Tax Rate $( 716,028,336) $ 250,185,870 $ 4,152,459,607 0.5146 ( 621,773,006) 260,571,835 3,900,769,022 0.5146 ( 757,265,921) 146,860,809 3,647,504,903 0.4911 ( 649,173,041) 132,002,406 3,375,850,131 0.4911 ( 544,328,535) 130,353,515 3,037,267,611 0.4974 ( 460,271,461) 135,084,054 2,752,562,574 0.4974 ( 340,747,650) 107,013,520 2,600,365,551 0.4999 ( 285,245,142) 105,837,429 2,411,270,623 0.4843 ( 262,591,896) 102,952,090 2,363,893,708 0.4493 ( 280,015,063) 117,337,786 2,342,355,490 0.4342 104 Fiscal Year 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 CITY OF SCHERTZ, TEXAS RATIOS OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS Governmental Activities General Certificates Certificates Obligation of Tax Bonds Obligation Notes $ 46,223,908 $ 15,801,473 $ 345,000 49,960,772 16,834,029 530,000 52,752,896 13,636,966 7151000 56,613,614 9,011,415 1,230,000 56,352,272 4,057,189 1,740,000 53,410,128 277,801 1,210,000 56,487,433 543,934 1,585,000 58,693,750 801,767 2,155,000 60,878,759 1,581,300 1901000 48,035,253 8,615,077 250,000 105 Certificates Capital Revenue of Lease Bonds Obligation $ 17,134 $ - $ 12,067,332 25,699 - 12,919,712 34,264 - 13,211,178 25,147 - 8,174,779 58,321 - 8,331,966 91,495 - 8,946,153 123,370 - 9,561,204 22,398 2,215,000 5,048,233 60,190 2,342,656 5,383,700 97,188 2,476,681 5,704,200 TABLE 12 Business -Type Public Facility Loan Activities General Obligation Bonds Capital Lease Tax Notes Total Primary Government Percent of Gross Income Per Capita $ - $ 3,951,449 $ 132,468 $ 150,000 $ 78,688,764 5.60% 1,841 - 4,727,188 199,421 460,000 85,656,821 5.60% 2,042 - 2,127,657 289,553 765,000 83,532,514 5.98% 2,028 - 2,533,626 92,721 1,065,000 75,076,605 6.22% 1,996 - 3,014,595 162,262 1,360,000 75,076,605 6.39% 1,979 - 3,490,564 231,803 1,640,000 69,297,944 5.99% 1,830 - 3,966,533 347,705 65,000 72,680,179 6.35% 1,992 - 2,127,502 - 130,000 71,193,650 6.50% 1,982 - 2,413,471 - 190,000 73,040,076 8.15% 2,117 - 2,684,440 - 250,000 68,112,839 8.01% 2,031 106 CITY OF SCHERTZ, TEXAS TABLE 13 RATIOS OF GENERAL BONDED DEBT OUTSTANDING LAST TEN FISCAL YEARS General Bonded Debt Outstanding Percentage of General Certificates Amounts Actual Taxable Fiscal Obligation of Available for Value of Per Year Bonds Obligation Debt Service Total Property Capita 2020 $ 50,175,357 $ 15,801,473 $( 1,051,874) $ 64,924,956 1.56% 1,577 2019 54,687,960 16,834,029 ( 1,084,908) 70,437,081 1.81% 1,785 2018 54,880,553 13,636,966 ( 809,427) 67,708,092 1.86% 1,785 2017 59,147,240 9,011,415 ( 924,989) 67,233,666 1.99% 1,776 2016 59,366,867 4,057,189 ( 813,306) 62,610,750 2.06% 1,716 2015 56,900,692 277,801 ( 847,178) 56,331,315 2.05% 1,568 2014 60,453,966 543,934 ( 517,199) 60,480,701 2.33% 1,753 2013 60,821,252 801,767 ( 227,674) 61,395,345 2.55% 1,830 2012 63,292,230 1,581,300 ( 117,250) 64,756,280 2.74% 2,418 2011 50,719,693 8,615,077 ( 286,215) 59,048,555 2.52% 2,231 107 CITY OF SCHERTZ, TEXAS TABLE 14 DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT [aIl] 10:1►1i�11ye\ 7 Estimated Estimated Share of Debt Percentage Overlapping Governmental Unit Outstanding Applicable* Debt Debt repaid with property taxes: Alamo CCD $ 437,790,000 0.30% $ 1,313,370 Bexar County 1,944,900,000 0.30% 5,834,700 Bexar County Hospital District 932,030,000 0.30% 2,796,090 Comal County 140,350,000 4.31% 6,049,085 Comal ISD 722,510,179 4.42% 31,934,950 Guadalupe County 9,405,000 20.03% 1,883,822 Schertz- Cibolo- Universal ISD 397,644,650 48.57% 193,136,006 Subtotal, Overlapping Debt City Governmental Activities Direct Debt TOTAL NET OVERLAPPING DEBT 242,948,022 62,370,381 $ 305,318,403 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. Overlapping debt is the proportionate share of the debts of local jurisdictions located wholly or in part within the limits of the City of Shertz. This schedule is intended to demonstrate the total debt that the City of Shertz property tax payers will be expected to repay. The amount of debt applicable to the City of Schertz is computed by (a) determining what portion of total assessed value of the overlapping jurisdiction lies within the limits of the City and (b) applying this percentage to the total governmental activities debt of the overlapping jurisdiction. 108 Assessed Value, 2019 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 Net Position DEBT MARGIN Total Net Debt as a Percentage of Debt Margin CITY OF SCHERTZ, TEXAS DEBT MARGIN INFORMATION LAST TEN FISCAL YEARS TABLE 15 $ 4,152,459,607 $ 415,245,961 $ 62,370,381 ( 1,051,874) 61,318,507 $ 353,927,454 17.33% 109 Fiscal Year 2016 2017 2018 Assessed Value $ 3,375,850,131 $ 3,647,504,903 $ 3,783,027,833 Debt Limit 337,585,013 364,750,490 378,302,783 Total Net Debt Applicable to Limit 61,181,169 65,792,916 66,329,699 Total Debt Margin $ 276,403,844 $ 298,957,574 $ 311,973,084 2013 2014 2015 Assessed Value $ 2,600,365,551 $ 2,752,562,574 $ 3,037,267,611 Debt Limit 260,036,555 275,256,257 303,726,761 Total Net Debt Applicable to Limit 60,499,568 56,803,499 53,424,303 Total Debt Margin $ 199,536,987 $ 218,452,758 $ 250,302,458 2010 2011 2012 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 $ 180,153,436 $ 199,536,987 109 CITY OF SCHERTZ, TEXAS TABLE 16 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 the depreciation, interest, or amortization expenses. 110 Water Revenue Bonds Utility Less: Net Debt Service Fiscal Service Operating Available Year Charges Expenses Revenue Principal Interest Coverage 2020 $ 29,735,911 $ 24,032,772 5,703,139 $ 1,961,953 $ 612,643 2.22 2019 27,246,250 22,622,986 4,623,264 1,845,132 561,880 1.92 2018 27,099,237 20,802,263 6,296,974 1,671,134 391,609 3.05 2017 25,390,713 18,697,162 6,693,551 1,554,541 368,390 3.48 2016 22,003,794 17,603,487 4,400,307 1,441,741 417,346 2.37 2015 20,700,369 15,916,597 4,783,772 1,448,407 428,912 2.55 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 NOTE: Details regarding the City's outstanding debt can be found in the notes to the basic financial statements. Operating expenses do not include the depreciation, interest, or amortization expenses. 110 Sources: Population, personal income, median age and education level informaiton provided by City Economic Development Corporation. School enrollment provided by Schertz- Cibolo- Universal City Independent School District. Unemployment data provided by Texas Workforce Commission. 111 CITY OF SCHERTZ, TEXAS TABLE 17 DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN FISCAL YEARS Education Per Capita Level in Fiscal Personal Personal Median Years of School Unemployment Year Population Income Income Age Schooling Enrollment Rate 2020 42,734 $ 1,680,129,944 $ 39,316 37.4 16.2 15,675 5.1% 2019 41,948 1,473,255,708 35,121 38.0 16.2 15,925 2.7% 2018 41,182 1,396,481,620 33,910 37.3 15.9 15,817 3.2% 2017 39,453 1,266,046,770 32,090 37.2 15.9 15,497 3.8% 2016 37,938 1,175,319,240 30,980 36.9 15.8 15,460 3.4% 2015 37,865 1,157,835,970 30,578 36.1 15.6 15,009 3.2% 2014 36,477 1,144,465,875 31,375 36.9 15.4 14,515 5.1% 2013 35,929 1,095,331,494 30,486 37.1 15.4 14,058 5.5% 2012 34,499 895,739,206 25,964 36.8 15.4 13,016 5.6% 2011 33,544 850,069,800 25,342 37.8 15.4 12,533 5.7% Sources: Population, personal income, median age and education level informaiton provided by City Economic Development Corporation. School enrollment provided by Schertz- Cibolo- Universal City Independent School District. Unemployment data provided by Texas Workforce Commission. 111 CITY OF SCHERTZ, TEXAS TOP TEN PRINCIPAL EMPLOYERS CURRENT YEAR AND NINE YEARS AGO TABLE 18 Source: City Economic Development Corporation 112 2020 2011 Percentage Percentage of Total City of Total City Employer Employees Employment Employees Employment Amazon 2,000 10.67% 1,615 10.39% Schertz-Cibolo- Universal City ISD 1,953 10.42% Sysco 783 4.18% Fed Ex Ground 600 3.20% 220 1.42% Republic National Distributing Company 569 3.04% Brandt Companies 408 2.18% 320 2.06% City of Schertz 404 2.16% 120 0.77% FedEx Freight 325 1.73% Hollingsworth 262 1.40% 154 0.99% Caterpillar 191 1.02% Builders First Source 140 0.75% Quality Custom Distribution 130 0.69% 120 0.77% Manco 91 0.49% 350 2.25% Wal -mart Stores 321 2.07% EyeCare Centers of America 300 1.93% H.E.B Grocery Co. 200 1.29% Valero Energy - 125 0.80% Theis Distributing Co. TOTAL 7,856 41.93% 3,845 24.74% Source: City Economic Development Corporation 112 CITY OF SCHERTZ, TEXAS FULL -TIME EQUIVALENT CITY GOVERNMENTAL EMPLOYEES BY FUNCTION LAST TEN FISCAL YEARS 113 Full -Time Equivalent Employees as of September 30, Function 2011 2012 2013 2014 General Government City Manager 6 7 7 6 Court Support - - - - Municipal Court 5 6 6 6 Customer Relations 5 5 5 5 Planning and Zoning 4 3 3 3 General Services 15 15 13 13 City Secretary 2 2 2 2 Public Affairs 3 4 4 4 Records Management 1 1 1 1 Schertz Magazine 2 2 2 2 Engineer 2 4 3 3 GIS 2 2 2 2 Information Technology 4 4 6 6 Human Resources 4 4 4 4 Finance 6 6 6 6 Purchasing 5 5 4 3 Fleet Service 4 4 4 4 Building Maintenance - - 2 2 Facility Services - - - - Public Safety Police 65 70 75 75 Fire 32 32 32 33 Inspections 7 7 7 8 Marshal Services 8 8 8 8 Health Animal Control 6 6 6 7 Environmental Health - - - - Parks and Culture Parks 9 9 9 9 Pools - - - - Event Facilities 1 1 1 1 Library 14 14 14 14 Public Environment Streets 14 14 14 14 Public Works Public Works 4 4 6 6 Business Office 10 10 10 10 Water and Sewer 17 17 16 16 Drainage 7 7 8 8 EMS 34 35 35 36 Economic Development 3 4 4 4 TOTAL 299 311 318 320 113 TABLE 19 Full -Time Equivalent Employees as of September 30, 2015 2016 2017 2018 2019 2020 6 5 5 5 5 5 6 6 6 6 4 4 5 5 5 5 3 3 3 4 4 4 3 3 13 - - - - - 2 2 2 2 2 2 4 4 4 5 5 5 1 1 1 - - - 2 2 2 - - - 3 7 7 7 7 8 2 2 2 2 2 2 6 6 7 8 8 8 4 5 5 5 5 5 8 8 8 8 7 7 3 3 3 3 3 3 6 6 6 6 7 8 3 - - - - - - 16 16 17 10 10 75 78 81 86 86 87 33 36 39 45 45 46 9 8 8 11 12 12 8 8 5 - - - 7 8 8 7 7 8 - 3 3 4 4 4 9 9 10 12 11 11 1 1 1 1 5 5 14 14 14 15 14 14 14 14 14 14 14 17 6 4 4 4 4 4 10 10 10 10 9 9 16 16 16 19 19 19 8 6 6 8 8 8 37 39 41 45 45 45 4 4 4 4 4 4 327 339 346 366 357 365 114 CITY OF SCHERTZ, TEXAS OPERATING INDICATORS BY FUNCTION /PROGRAM LAST TEN FISCAL YEARS 115 Fiscal Year Function 2011 2012 2013 2014 General Government Building Permits Issued 4,950 2,643 3,054 2,869 Schertz Tales Number of Magazines Printed 168,000 168,000 168,000 180,000 Police CFS 26,205 19,434 19,894 19,067 Arrests 762 666 800 776 Traffic Violations 13,231 20,881 19,335 15,077 Accidents 1,575 1,665 1,960 1,823 Fire Number of Rescue /Other Responses 1,657 1,799 2,046 1,759 Number of Fire Responses 110 74 108 110 Number of Inspections 616 429 332 252 Number of Training Classes Conducted 142 168 132 125 Number of Pre -Plan Inspections 536 714 729 735 EMS Requests for Transport 7,443 7,545 8,391 8,840 Actual Transports 4,801 4,766 5,451 5,713 EMT Students 85 79 116 87 Marshal Service Warrants Issued 4,141 2,888 3,344 2,354 Warrants Cleared 3,985 4,118 4,687 3,781 Food Establishment Permits 118 123 127 82 Food Establishment Inspection 244 180 281 218 Foster /Adoption Inspections 18 14 24 16 Parks Facility Reservations 237 234 258 301 Community and Civic Centers Civic Center 354 325 444 458 Community Center Rentals 666 816 735 437 North Community Center Rentals 241 307 288 244 115 Fiscal Year 2015 2016 2017 3,087 5,919 4,800 180,000 180,000 180,000 36,138 39,064 34,428 595 603 423 12,306 8,960 8,001 2,040 2,119 2,057 2,167 2,327 2,758 99 67 86 698 440 519 150 460 340 980 867 922 9,286 9,723 9,956 6,118 6,123 6,201 84 89 90 3,798 2,587 2,816 3,691 3,492 2,822 135 145 201 136 153 13 22 21 21 275 240 251 478 483 590 455 370 455 209 185 230 116 TABLE 20 2018 2019 2020 5,251 4,748 2,993 180,000 180,000 187,500 45,190 41,327 57,149 624 603 527 11,359 12,541 8,326 2,244 2,304 1,752 3,055 3,804 3,953 161 100 108 562 528 30 600 804 763 788 865 814 10,059 10,759 10,713 6,165 6,738 6,549 90 90 84 1,598 2,036 1,738 2,022 1,834 664 181 55 189 211 96 209 18 8 10 248 241 75 516 441 293 381 326 193 235 188 92 CITY OF SCHERTZ, TEXAS OPERATING INDICATORS BY FUNCTION /PROGRAM LAST TEN FISCAL YEARS Function Animal Services Number of Animals Handled Number of Adoptions Number of Return to Owners Number of Transfers Library Annual Circulation Library Visits Library Program Attendance Registered Users Water New Connections Water Main Breaks Total Consumption (Thousands of Gallons) Daily Average Consumption (Thousands of Gallons) Peak Daily Consumption (Thousands of Gallons) Total Customers Average Use Per Connection Sewer Total Customers Facilities Maintenance Number of Buildings Maintained Square Footage Fiscal Year 2011 2012 2013 2014 1,802 1,463 1,326 1,218 257 291 362 309 313 149 231 222 300 312 301 316 414,074 410,312 404,691 395,998 254,934 256,349 254,633 253,237 13,767 16,035 12,581 15,048 28,589 30,475 31,658 30,759 439 271 168 235 76 52 38 45 16,763,239 16,131,415 15,500,413 15,497,071 45,927 44,196 42,466 42,458 11,000 9,290 9,483 10,089 12,234 12,557 12,757 13,324 5,725 5,517 5,905 5,467 10,907 10,988 11,456 11,578 19 19 19 19 166,591 166,591 166,591 166,591 117 TABLE 20 Fiscal Year 2015 2016 2017 2018 2019 2020 1,304 1,313 1,283 926 1,157 1,015 357 410 348 319 366 450 213 205 228 218 233 335 296 316 326 297 227 188 394,766 399,622 385,206 414,790 447,379 254,643 259,413 255,109 235,428 258,695 237,821 102,297 13,825 15,282 16,814 16,945 18,412 6,524 31,138 30,702 31,432 30,806 33,104 31,296 369 213 303 235 300 357 45 45 45 50 52 65 14,757,134 16,097,931 15,222,373 15,833,124 17,602,330 1,976,687 40,431 43,942 41,705 43,378 48,225 54,155 8,385 10,985 11,000 9,083 11,094 14,011 13,570 13,877 14,124 14,678 16,434 13,683 5,135 5,352 5,244 5,294 4,587 5,600 11,413 12,282 12,398 12,866 12,853 13,112 21 21 21 25 26 27 234,202 234,202 234,202 245,218 257,218 301,656 118 CITY OF SCHERTZ, TEXAS CAPITAL ASSET STATISTICS BY FUNCTION /PROGRAM LAST TEN FISCAL YEARS Fiscal Year Function 2011 2012 2013 2014 Police 10 10 11 11 Stations 1 1 1 1 Patrol Units 42 42 42 42 Fire 3 3 3 3 Stations 2 2 2 2 Training Facility - - - - Fire Vehicles 13 13 13 15 EMS Ambulances 6 6 7 7 Marshal Service Vehicles 8 8 7 7 Streets Streets, Paved (Miles) 132 134 137 141 Streets, Unpaved (Miles) 5 5 5 5 Parks and Recreation Parks - Developed 17 17 13 13 Parks - Undeveloped 4 4 8 8 Playground 15 15 16 16 Swimming Pools 2 2 2 2 Baby Pools 2 2 2 2 Baseball /Softball Diamonds 9 9 12 12 Soccer Fields 12 12 12 12 Community Centers 4 4 4 4 Animal Control Control Vehicle 3 3 3 3 Library Facility 1 1 1 1 Volumes in Collection 73,904 81,468 86,221 100,478 Water Number of Reservoirs - - - - Number of Pump Stations 5 5 5 5 Water Mains (Miles) 192 192 197 199 Sewer Sanitary Sewers (Miles) 84 85 87 90 Storm Sewers (Miles) 10 10 11 11 Facilities Maintenance Vehicles 5 4 5 5 Generators 3 3 3 3 119 TABLE 21 Fiscal Year 2015 2016 2017 2018 2019 2020 1 1 1 1 1 1 48 50 64 69 68 72 2 2 2 3 3 3 - - - - 0 0 16 16 16 18 19 20 9 9 8 8 9 9 7 7 7 7 7 7 149 153 159 153 165.4 165 5 5 5 5 5 5 14 15 20 21 21 9 10 4 4 4 21 18 19 19 19 20 4 2 2 4 4 4 21 2 2 2 2 2 4 15 15 15 15 15 2 12 12 12 12 12 15 4 4 4 4 4 12 4 3 4 3 4 4 6 1 1 1 1 1 1 113,085 97,412 107,382 110,266 150,972 139,447 - - - 0 0 0 5 5 5 5 5 6 210 211 221 225 228 228.5 96 98 110 113 116 116.2 12 12 12 13.6 13.8 13.8 6 6 6 11 11 10 4 4 4 7 10 7 120 THIS PAGE LEFT BLANK INTENTIONALLY