22-R-31 FY2020-21 CAFRA RESOLUTION BY THE CITY COUNCIL OF THE CITY OF
SCHERTZ, TEXAS AUTHORIZING THE APPROVAL OF THE
COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR FISCAL
YEAR 2020-21, AND OTHER MATTERS IN CONNECTION
THEREWITH
FORM
VMEREAS, the City Council has determined that it is in the best interest of the City
approve the Comprehensive Annual Financial Report for Fiscal Year 2020-2 1. 1
Section 5. If any provision of this Resolution or the application thereof to any person
or circumstance shall be held to be invalid, the remainder of this Resolution and the application
of such provision to other persons and circumstances shall nevertheless be valid, and the City
Council hereby declares that this Resolution would have been enacted without such invalid
provision.
Section 6. It is officially found, determined, and declared that the meeting at whi
matter of the public business to be considered at such meeting, including this Resolution, w
given, all as required by Chapter 55 1, Texas Government Code, as amended.
Section 7. This Resolution shall be in force and effect from and after its final
passage, and it is so resolved.
ATTEST:
City Secretary, Brenda Dennis
af4 Gutierrez, Mayor
CITY OF SCHERTZ, TEXAS
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED
SEPTEMBER 30, 2021
Col :4!![— L��7i;*1J ►`LdU4101:4
James M. Browne
City Manager
James Walters
Director of Finance
CITY OF SCHERTZ, TEXAS
FOR THE YEAR ENDED SEPTEMBER 30, 2021
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|lections ----------------------
10
102
Taxable Assessed Value ................................ ----------....................
11
103-1O4
RaUosofOutstandingDettbyType ----------------------
12
105'106
RaUosofGenera|BondedDebtOutstanding ------------------.
13
107
DinectandOvedappngGovernnnenta|ActivibesDebt --------------
14
108
DebtMarginInfonnaUon ---------------------------.
15
109
P|edgedRevonuoCoverage --------------------- -----
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 Funcbon/Program------------------
21
119- 120
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INTRODUCTORY SECTION
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March 08, 2022
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 annual comprehensive financial
report of the City of Schertz for the fiscal year ended September 30, 2021.
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, 2021, 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, 2021, 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 42,002 in 2020 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.
1400 Schertz Parkway Schertz, Texas 78154 210.619.1000 schert xo
The City of Schertz has operated under the council - manager form of government since November 30, 1972.
Polieymaking and legislative authority are vested in a City Council consisting of the Mayor and seven at -large
eouncilmembers. 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 30th
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 Affecting Financial Condition
The information presented in the financial statements is perhaps best understood when it is considered from the
broader perspective of the specific environment within which the City of Schertz operates.
Local economy.
Economic growth in Schertz remained strong in 2021. The surrounding metro area saw growth evidenced by the
Federal Reserve Bank of Dallas reporting the San Antonio Business -Cycle Index increase 6.1% year over year
for September 2021. This Index potentially indicates a new period of economic growth around the state. As of
September 2021, the unemployment rate for Texas was 4.9% 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
3.8% during this time.
As another indicated of economic growth, the City of Schertz realized a 16.7% increase year -over -year in sales
tax collections during the fiscal year. While Schertz continued to see growth during the pandemic, as other
economies start to recover Schertz continues strong.
Further showcasing Schertz' economic fortitude, it also saw a diverse range of new products developed its real
estate and land markets with approximately 2,373,899 square feet of new commercial and industrial space that
will become available. CORES is working with the City to provide 1.7 million sq ft of speculative industrial space
in the southern area of Schertz. In the North, Titan Development, EastGroup, and Phelan- Bennet are adding
573,899 sq ft of industrial warehouse space that is currently under development.
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 ° s c ert e. oai
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 2021 -22, the City is using the momentum from the previous year and
is putting an additional $500,000 into replacing the City's financial software and funding an estimated $350,000
to fix the HVAC system in the Animal Adoption Facility. Due to growing needs the City will also hire a Police
Officer, an Evidence Technician and a Plumber as well as expand the existing facilities cleaning contract to
include public safety buildings and parks restrooms. The EMS Fund will hire an additional 2 Paramedics and the
Water & Sewer Fund will hire a SCADA Technician.
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 105 -110. 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 Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate
of Achievement for Excellence in Financial Reporting to the City of Schertz for its annual comprehensive
financial report for the fiscal year ended September 30, 2020. This was the 36th 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 annual comprehensive financial report. This report must satisfy both
generally accepted accounting principles and applicable legal requirements.
Im
1400 Schertz Parkway Schertz, Texas 78154 210.619.1000 schert ,cmri
A Certificate of Achievement is valid for a period of one year only. We believe our current annual comprehensive
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,
p
James M. Browne
City Manager
1400 Schertz Parkway
James P. Walters
Finance Director
iv
Sehertz, Texas 78154 210.619.1000 Or .ychertzxorr°
CITY OF SCHERTZ, TEXAS
CITY OFFICIALS
MAYOR RALPH GUTIERREZ
MAYOR PRO -TEM ROSEMARY SCOTT
CITY COUNCIL MARK E. DAVIS
JILL WHITTAKER
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
CITY OF SCHERTZ
ORGANIZATIONAL
FY 2020-21
*Appointed by City Council vi
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Schertz
Texas
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
September 30, 2020
rWe',.�W M�M
Executive Director /CEO
Vii
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FINANCIAL SECTION
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INDEPENDENT AUDITOR'S REPORT
Honorable Mayor and
Members of the City Council
City of Schertz, Texas
Report on the Financial Statements
ATTILL. „ BROWN & HILL, L.L.P..
401 'Nest State Kgh ;.Yay 6
Waco Texas 76717
254.772.4901 pbhcpaxom
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, 2021, 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 11.2 percent and 12.9 percent, respectively, of the
assets and net position of the Water and Sewer Fund, and 10.8 percent and 12.7 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 Waco i Temple i Hillsboro Houston AlCPA
NEWMEXICO Albuquerque 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, 2021, 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 2020 financial statements, and we
expressed an unmodified audit opinion on those audited financial statements in our report dated March 19,
2021. In our opinion, the summarized comparative information presented herein as of and for the year ended
September 30, 2020 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 4,
2022, 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 4, 2022
3
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MANAGEMENT'S
DISCUSSION AND ANALYSIS
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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 $269,248,695 (net position). Of this amount, $50,150,925 (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 $25,855,719. The primary reason for this increase was an increase in
capital contributions of approximately $12 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
$57,119,032, an increase of $6,125,378 in comparison with the prior year. The primary cause of this increase was a
increases in property and sales tax revenues that exceeded expenditure growth.
At the end of the fiscal year, the combined total of the General Fund assigned and unassigned fund balances was
$13,257,017 which is 36.79% 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, deferred outflows, liabilities, and
deferred inflows, with the difference between the former two and latter 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 fifteen 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, the capital projects fund, and the American Recovery Plan Act fund, all of which are considered to be
major funds. Data from the other ten 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 two types of proprietary funds. 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. The City also maintains an internal service fund to account for internal charges for medical
premiums.
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, as well as the internal service fund.
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 $269,248,695
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 spent. 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.
�1
An additional portion of the City's total net position (14 %) represents resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net position, $50,150,925, 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
2021 2020 2021
2020
2021
2020
Current and other assets
$ 67,416,673 $ 62,199,597 $ 56,132,860 $
54,664,167 $
123,549,533 $
116,863,764
Capital assets
149,570,599 144,079,930 98,743,525
92,643,825
248,314,124
236,723,755
Total assets
216,987,272 206,279,527 154,876,385
147,307,992
371,863,657
353,587,519
Deferred outflows of resources
3,488,506 3,267,540 954,384
806,262
4,442,890
4,073,802
Current liabilities
12,946,000 12,527,345 5,316,572
5,245,378
18,262,572
17,772,723
Long -term liabilities
67,867,628 73,002,458 18,214,795
20,706,167
86,082,423
93,708,625
Total liabilities
80,813,628 85,529,803 23,531,367
25,951,545
104,344,995
111,481,348
Deferred inflows of resources
2,130,871 2,235,923 581,986
551,074
2,712,857
2,786,997
Net position:
Net investment in capital assets
98,444,714 88,959,102 83,941,882
75,969,319
182,386,596
164,928,421
Restricted
28,342,438 28,664,438 8,368,736
15,071,599
36,711,174
43,736,037
Unrestricted
10,744,127 4,157,801 39,406,798
30,570,717
50,150,925
34,728,518
Total net position
$ 137,531,279 $ 121,781,341 $ 131,717,416 $
121,611,635 $
269,248,695 $
243,392,976
The government's net position increased by $25,855,719 during the current fiscal year. The primary cause for the
increase was increased revenues; the City recognized approximately $12 million of capital contribution revenue
related to dedicated infrastructure assets and also experienced sharp increases in property and sales taxes. These
increases stem from the City's continued rapid population growth; continued new housing and business
developments resulted in increased assessed value for property taxes and resulted in the creation of infrastructure
that was dedicated to the City. The related population increases resulted in increased economic activity that
increased sales tax revenues.
Additionally, expenses influenced the change in net position from the following notable factors:
• General government expenses decreased compared to the prior year; in fiscal year 2020, Schertz EDC made a
planned $3.7 million incentive payment for developers meeting performance obligations.
• Public Safety expenses increased over $2 million due to increases to police and fire salaries. In 2020, the City
completed a comprehensive compensation study that resulted in significant pay raises to maintain
competitive against market wages.
• Public works expenses decreased over $3.5 million, primarily due to one -time project expenditures in the prior
year that did not qualify as capital construction.
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
Governmental
Business -Type
Activities
Activities
Total
2021
2020
2021
2020
2021
2020
Revenues:
Program revenues:
Charges for services
$ 5,448,546 $
5,619,998
$ 35,433,956 $
35,824,170 $
40,882,502 $
41,444,168
Operating grants & contributions
1,925,939
2,113,673
-
-
1,925,939
2,113,673
Capital contributions
7,959,576
531,096
6,935,191
292,408
14,894,767
823,504
General revenues:
Property taxes
21,463,804
19,844,912
-
-
21,463,804
19,844,912
Other taxes
19,731,490
17,076,462
-
-
19,731,490
17,076,462
Investment earnings
104,613
804,674
68,354
431,555
172,967
1,236,229
Miscellaneous
1,408,270
767,799
754,268
706,296
2,162,538
1,474,095
Total revenues
58,042,238
46,758,614
43,191,769
37,254,429
101,234,007
84,013,043
Expenses:
General government
7,298,193
10,310,363
-
-
7,298,193
10,310,363
Public safety
19,008,871
16,575,191
19,008,871
16,575,191
Public environment
5,364,408
8,825,099
5,364,408
8,825,099
Parks and recreation
3,395,458
3,012,134
3,395,458
3,012,134
Cultural
1,087,975
1,089,564
1,087,975
1,089,564
Health
-
596,288
-
596,288
Administration
4,360,229
3,419,407
4,360,229
3,419,407
Interest and other fees
1,797,520
2,028,065
-
-
1,797,520
2,028,065
Water and sewer
-
-
25,280,964
24,349,219
25,280,964
24,349,219
EMS
-
-
7,784,670
6,051,296
7,784,670
6,051,296
Total expenses
42,312,654
45,856,111
33,065,634
30,400,515
75,378,288
76,256,626
Increase in net position
before transfers
15,729,584
902,503
10,126,135
6,853,914
25,855,719
7,756,417
Transfers
20,354
( 20,354}
Change in net position
15,749,938
902,503
10,105,781
6,853,914
25,855,719
7,756,417
Net position - beginning of year
121,781,341
120,878,838
121,611,635
114,757,721
243,392,976
235,636,559
Net position - end of year
$ 137,531,279 $
121,781,341
$ 131,717,416 $
121,611,635 $
269,248,695 $
243,392,976
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
TOTAL REVENUES - GOVERNMENT -WIDE
Charges for Operating Capital Grants Property Other Taxes Unrestricted Miscellaneous
Services Grants and and Taxes Investment
Contributions Contributions Earnings
-2021 c,2020
N
$20,000,000
$18,000,000
$16,000,000
$14,000,000
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
Sales T
40%
TOTAL EXPENSES - GOVERNMENT -WIDE
General Public Safety Public Parks and Cultural Health Administration Interest and
Government Environment Recreation Other Fees
-2021 -2020
GENERAL REVENUE BY SOURCE - GOVERNMENTAL ACTIVITIES
r.�asr_�r_r_�rrecn
8
-operty Tax
50%
TOTAL REVENUES AND EXPENSES - BUSINESS -TYPE ACTIVITIES
$45,000,000
$40,000,000
$35,000,000
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
2021 2020
w Revenues �, Expenses
BUSINESS -TYPE REVENUES AND EXPENSES
Water and Sewer Utilities EMS
Revenues mNonoperating Revenues w, Capital Contributions and Transfers Expenses
7
Financial Analysis of the Government's Funds
As noted earlier, the City of Schertz uses fund accounting to ensure and demonstrate compliance with finance -
related legal requirements.
Governmental funds. The focus of the City's governmental funds is to provide information on near -term inflows,
outflows, and balances of spendable resources. Such information is useful in assessing the City's financing
requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net
resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the City's governmental funds reported combined ending fund
balances of $57,119,032. Of this total amount, $11,080,576 constitutes unassigned fund balance, which
is available for spending at the government's discretion. The remainder of fund balance is non - spendable,
restricted, committed, 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 $11,755,619, while total fund balance was $16,478,567,
a decrease of $490,411 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 to total fund expenditures. Unassigned fund balance represents 36.79% of total general fund
expenditures, not including capital outlay.
The debt service fund has a total fund balance of $1,087,376, all of which is restricted for the payment of
debt service. The net increase in fund balance during the current year in the debt service fund was $301,457. This
increase was due to regular principal and interest payments on long -term debt being exceeded by 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 if tax revenues decrease.
The capital projects fund has a total fund balance of $13,170,964, an increase of $3,033,406. This was caused by
the supplementation of revenue by amounts transferred from the general and Economic Development Corporation
funds.
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 $21,806,231, which is an increase of $787,605 compared to
the prior year. The primary cause of this change was sales tax revenue growing faster than expenditures.
The American Rescue Plan Act Fund has a total fund balance of $243, which consists of interest earned on the
$5,208,951 received from the first tranche of the Coronavirus Local Fiscal Recovery Fund grant program. The City
had spent $303,000 of this amount as of yearend, and the remaining $4,905,708 is presented as unearned revenue
until it is spent in accordance with the terms of the grant agreement in future years.
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 $38,332,979 and those for the Schertz EMS fund amounted to $1,073,819, which are 155% and
14% of fund operating costs, respectively.
The water and sewer fund reported an increase in net position of $10 million. Approximately half of this increase
related to revenue recognized for contributed infrastructure assets; the remaining portion of the increase was from
operating income, which was consistent with the prior year. Management's intent is to accumulate operating surplus
to fund construction of new water and sewer infrastructure in future years with less reliance on bonded debt.
The Schertz EMS fund increased net position by $77,921. Revenues and expenses both increased by approximately
$1.6 million compared to the prior year. Revenues increased due to increased number of ambulance runs caused by
the the growth in the population of the EMS service area. Expenses increased primarily from increased salaries that
resulted from the compensation study discussed previously.
w
General Fund Budgetary Highlights
The general fund expenditures were $1,738,423 less than the $34,254,845 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 $1,519,574 less than
budgeted, primarily due to increased property and sales tax revenues that fell short of the budgeted amount.
Overall, ending fund balance in the general fund was $3,241,694 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, 2021, amounts to $248,314,124 (net of accumulated depreciation), including several projects in
progress from voter approved bonds.
Significant capital asset activity for the year included improvements to streets and infrastructure of $9.2 million
and various equipment and technology purchases of $726,000, including $344,000 of vehicles.
Additional information on the City's capital assets can be found in note II.F. to the basic financial statements.
K01L[elk 142 wr0914 311
At the end of the current fiscal year, the City of Schertz had total long -term debt outstanding of $73,724,518. 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
2021
2020
2021
2020
2021
2020
Land
$ 8,310,986 $
8,074,199 $
1,844,488 $
1,844,488 $
10,155,474 $
9,918,687
Water rights
-
-
70,245
70,245
70,245
70,245
Buildings and improvements
44,588,777
44,447,749
3,609,126
3,635,532
48,197,903
48,083,281
Machinery, equipment, and
2,502,146
2,170,381
772,802
828,781
3,274,948
-
vehicles
14,833,547
14,552,416
6,214,967
5,976,040
21,048,514
20,528,456
Infrastructure
129,206,285
119,945,442
105,832,113
100,588,293
235,038,398
220,533,735
Construction in progress
26,695,151
24,826,910
19,942,794
17,266,273
46,637,945
42,093,183
Accumulated depreciation
( 74,064,147) (
67,766,786) (
38,770,208) (
36,737,046) (
112,834,355) (
104,503,832)
TOTALS
$149,570,599 $ ____144
_..
079 930 $
_ _L____J__
98,743,525 $
92,643,825_ $248,314,124
$
_236,723,755
Significant capital asset activity for the year included improvements to streets and infrastructure of $9.2 million
and various equipment and technology purchases of $726,000, including $344,000 of vehicles.
Additional information on the City's capital assets can be found in note II.F. to the basic financial statements.
K01L[elk 142 wr0914 311
At the end of the current fiscal year, the City of Schertz had total long -term debt outstanding of $73,724,518. 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.
Total debt decreased compared to the prior year due to continued payment on existing debt without any additional new
issuances. However, the City did issue refunding debt of $7,555,000 in the current year to pay off existing bonds and
reduce future debt service.
Additional information on the City's long -term debt can be found in note II.H. to the basic financial statements.
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 decreased to $13.2
million in a planned decrease of fund balance. The decrease was $490,411 but was budgeted to be $1 million in the
original adopted budget. The City of Schertz has appropriated $598,549 of this amount for spending in the 2022
fiscal year budget in accordance to the City's fund balance policy. The approved tax rate remained the same at
$0.5121 per $100 of valuation.
Ell
Governmental
Business -Type
Activities
Activities
Total
2021
2020
2021
2020
2021
2020
General obligation bonds
$ 40,390,000 $
44,620,000 $
2,895,000 $
3,685,000 $
43,285,000 $
48,305,000
Certificates of obligation
14,200,000
15,235,000
10,655,000
11,505,000
24,855,000
26,740,000
Tax notes and leases
291,535
362,134
475,121
282,468
766,656
644,602
Premium on bonds
2,502,146
2,170,381
772,802
828,781
3,274,948
2,999,162
Compensated absences
1,178,062
967,540
364,852
249,269
1,542,914
1,216,809
TOTALS
$ 58,561,743 $
63,355,055 $
15,162,775 $
16,550,518 $
73,724,518 $
79,905,573
Total debt decreased compared to the prior year due to continued payment on existing debt without any additional new
issuances. However, the City did issue refunding debt of $7,555,000 in the current year to pay off existing bonds and
reduce future debt service.
Additional information on the City's long -term debt can be found in note II.H. to the basic financial statements.
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 decreased to $13.2
million in a planned decrease of fund balance. The decrease was $490,411 but was budgeted to be $1 million in the
original adopted budget. The City of Schertz has appropriated $598,549 of this amount for spending in the 2022
fiscal year budget in accordance to the City's fund balance policy. The approved tax rate remained the same at
$0.5121 per $100 of valuation.
Ell
The City has not seen lasting effects of the ongoing COVID -19 pandemic. The City's property tax revenues were not
negatively affected, with rising property values and continued construction of new homes and business showing
growth in the tax base instead. 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.
E Vj
THIS PAGE LEFT BLANK INTENTIONALLY
BASIC
FINANCIAL STATEMENTS
CITY OF SCHERTZ, TEXAS
STATEMENT OF NET POSITION
SEPTEMBER 30, 2021
DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on debt refunding
564,011
Primary Government
589,038
Deferred OPEB related outflows
Governmental
Business -Type
817,436
Deferred pension related outflows
Activities
Activities
Total
ASSETS
3,488,506
954,384
4,442,890
Cash and cash equivalents
$ 54,740,108
$ 9,456,846
$ 64,196,954
Investments
4,720,194
1,163,351
5,883,545
Receivables, net of allowances:
1,180,560
370,077
1,550,637
Taxes
4,112,464
-
4,112,464
Accounts and other
1,967,768
6,459,527
8,427,295
Accrued interest
-
6,324
6,324
Inventories
134,373
184,455
318,828
Prepaids
29,080
2,311
31,391
Internal balances
( 16,139)
16,139
-
Restricted assets:
Cash and cash equivalents
946,454
20,271,954
21,218,408
Investments
-
1,830,287
1,830,287
Service concession arrangement receivable:
Due within one year
90,909
-
90,909
Due in more than one year
691,462
-
691,462
Investment in joint venture
-
16,741,666
16,741,666
Capital assets:
Land
8,310,986
1,844,488
10,155,474
Water rights
-
70,245
70,245
Buildings and improvements
44,588,777
3,609,126
48,197,903
Equipment and vehicles
14,833,547
6,214,967
21,048,514
Infrastructure
129,206,285
105,832,113
235,038,398
Construction in progress
26,695,151
19,942,794
46,637,945
Accumulated depreciation
( 74,064,147)
( 38,770,208)
( 112,834,355)
Total Assets
216,987,272
154,876,385
371,863,657
DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on debt refunding
564,011
25,027
589,038
Deferred OPEB related outflows
622,588
194,848
817,436
Deferred pension related outflows
2,301,907
734,509
3,036,416
Total Deferred Outflows of Resources
3,488,506
954,384
4,442,890
LIABILITIES
Accounts payable
1,141,700
2,356,880
3,498,580
Accrued liabilities
1,180,560
370,077
1,550,637
Retainage payable
154,437
28,747
183,184
Due to other governments
60,492
-
60,492
Unearned revenue
4,946,298
456,575
5,402,873
Accrued interest payable
286,255
60,113
346,368
Customer deposits
1,007
627,152
628,159
The accompanying notes are an integral part
of these financial statements. 13
CITY OF SCHERTZ, TEXAS
STATEMENT OF NET POSITION
LIABILITIES (continued)
Noncurrent liabilities:
Due within one year:
Compensated absences
Total OPEB liability
Service concession arrangement
Long -term debt
Due in more than one year:
Compensated absences
Total OPEB liability
Net pension liability
Service concession arrangement
Long -term debt
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
SEPTEMBER 30, 2021
Primary Government
Governmental Business -Type
Activities Activities Total
$ 235,612 $ 72,971
52,091 16,621
55,241 -
4,832,307 1,327,436
942,450
2,600,981
11,352,654
420,169
52,551,374
80,813,628
306,961
333,199
1,490,711
2,130,871
98,444,714
421,362
889,139
2,301,716
21,806,474
934,913
934,899
1,053,935
10,744,127
$ 137,531,279
14
291,881
829,941
3,622,486
13,470,487
23,531,367
106,320
475,666
581,986
::
8,368,736
39,406,798
$ 131,717,416
$ 308,583
68,712
55,241
6,159, 743
1,234,331
3,430,922
14,975,140
420,169
66,021,861
104, 344, 99 5
306,961
439,519
1,966,377
2,712,857
182,386,596
421,362
889,139
2,301,716
21,806,474
934,913
934,899
1,053,935
8,368,736
50,150,925
$ 269,248,695
CITY OF S0HERTZ, TEXAS
STATEMENT OFACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2021
Business-type activities:
Water and sewer 25,280,964 27,724,429 - 6,935,191
EMS 7,784,670 7,709,027 - -
Total Business-Type Activities -__' 6,435^191�
Total Primary Government $ 75,378,288 $ 40,882,502 $1925,939 $ 14
General revenues:
/axes:
Ad valorem
Sales
Franchise fees
Hotel/motel
Mixed drink
Investment earnings
Miscellaneous
Transfers
Total General Revenues and Transfers
Change in Net Position
Net Position -Beginning
Net Position - Ending
The accompanying notes are an integral part
of these financial statements. is
Progra Revenues
Operating
Capital
Charges for
Grants and
Grants and
Functions/Prog rams
Expenses
Services
Contributions
Contributions
Primary government:
Governmental activities:
General government
$ 7,298,193
$ 651,211
$ 1,367,592
$ -
Public safety
19,008,871
3,079,945
538,523
-
Public environment
5,364,408
902,712
-
7,959,576
Parks and recreation
3,305,458
528,886
-
-
Cultural
1,087,975
285,792
19,824
-
Administration
4,360,229
-
-
-
Interest
1797520
-
-
-
Total Governmental Activities
42,312,654
1=925/I39}
7,959,576
Business-type activities:
Water and sewer 25,280,964 27,724,429 - 6,935,191
EMS 7,784,670 7,709,027 - -
Total Business-Type Activities -__' 6,435^191�
Total Primary Government $ 75,378,288 $ 40,882,502 $1925,939 $ 14
General revenues:
/axes:
Ad valorem
Sales
Franchise fees
Hotel/motel
Mixed drink
Investment earnings
Miscellaneous
Transfers
Total General Revenues and Transfers
Change in Net Position
Net Position -Beginning
Net Position - Ending
The accompanying notes are an integral part
of these financial statements. is
Net (Expense) Revenue and Changes in Net Position
Primary Government
Governmental Business -Type
Activities Activities Total
$( 5,279,390)
( 15,390,403)
3,497,880
( 2,866,572)
( 782,359)
( 4,360,229)
( 1,797,520)
( 26,978,593)
( 26,978,593
21,463,804
16,838,731
2,305,108
518,921
68,730
104,613
1,408,270
20,354
42,728,531
15,749,938
121,781,341
$ 137,531,279
9,379,156
( 75,643)
9,303,513
9,303,513
68,354
754,268
( 20,354)
802,268
10,105,781
121,611,635
$ 131,717,416
$( 5,279,390)
( 15,390,403)
3,497,880
( 2,866,572)
( 782,359)
( 4,360,229)
( 1,797,520)
( 26,978,593)
9,379,156
( 75,643)
9,303,513
( 17,675,080)
21,463,804
16,838,731
2,305,108
518,921
68,730
172,967
2,162,538
43,530,799
25,855,719
243,392,976
$ 269,248,695
16
CITY OF SCHERTZ, TEXAS
BALANCE SHEET
GOVERNMENTAL FUNDS
SEPTEMBER 30, 2021
General
Capital Projects
Debt Service
Fund
Fund
Fund
ASSETS
Cash and cash equivalents $
11,733,703
$ 13,229,954
$ 1,087,376
Investments
2,514,059
-
-
Receivables (net of allowances)
Taxes
2,924,472
-
133,778
Accounts and other
1,636,735
258,142
-
Due from other funds
678,444
-
-
Inventory
134,373
-
-
Prepaid items
28,090
-
-
Restricted assets:
Cash and cash equivalents
946,454
-
-
Total Assets
20,596,330
13,488,096
1,221,154
LIABILITIES
Accounts payable
921,978
162,695
-
Accrued salaries and benefits
1,180,560
-
-
Retainage payable
-
154,437
-
Customer deposits
1,007
-
-
Due to other governments
60,492
-
-
Due to other funds
16,139
-
-
Unearned revenues
40,589
-
-
Total Liabilities
2,220,765
317,132
-
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
1,896,998
-
133,778
Total Deferred Inflows of Resources
1,896,998
-
133,778
FUND BALANCES
Nonspendable for:
Inventory
134,373
-
-
Prepaid items
28,090
-
-
Restricted for:
Police and public safety /municipal court
287,199
-
-
Municipal court
816,152
-
-
PEG capital fees
889,139
-
-
Capital improvement
-
5,185,166
-
Debt service
-
-
1,087,376
Tourism development
-
-
-
Parks and tree mitigation
-
-
-
Historical Committee and library
-
-
-
Economic development
-
-
-
Animal control
42,416
-
-
Scholarships
116,505
-
-
Committed for:
Capital Projects
-
7,985,798
-
Civic Center /CIED
907,676
-
-
Assigned for:
Property replacement
902,849
-
-
Subsequent year's budget
598,549
-
-
Unassigned
11,755,619
-
-
Total Fund Balances
16,478,567
13,170,964
1,087,376
Total Liabilities, Deferred Inflows of Resources,
and Fund Balances $
20,596,330
$ 13,488,096
$ 1,221,154
The accompanying notes are an integral part
of these financial statements. 17
Economic
American
Nonmajor
Total
Development
Rescue Plan Act
Governmental
Governmental
Corporation
Fund
Funds
Funds
$ 18,542,752
$ 4,905,952
$ 5,240,371
$ 54,740,108
2,206,135
-
-
4,720,194
1,054,214
-
-
4,112,464
7,949
-
64,942
1,967,768
-
-
-
678,444
-
-
-
134,373
990
-
-
29,080
-
-
-
946,454
21,812,040
4,905,952
5,305,313
67,328,885
5,809
-
51,218
1,141,700
-
-
-
1,180,560
-
-
-
154,437
-
-
-
1,007
-
-
-
60,492
-
-
678,444
694,583
-
4,905,709
-
4,946,298
5,809
4,905,709
729,662
8,179,077
134,163
1,801,040
2,301,716
934,913
- - 78,862
21,806,231 243 -
21,806,231
$ 21,812,040
243
$ 4,905,952
( 675,043)
4,575,651
$ 5,305,313
18
2,030,776
2,030,776
134,373
28,090
421,362
816,152
889,139
6,986,206
1,087,376
2,301,716
934,913
78,862
21,806,474
42,416
116,505
7,985,798
907,676
902,849
598,549
11,080,576
57,119,032
$ 67,328,885
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, 2021
Total Fund Balances - Governmental Funds $ 57,119,032
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. 149,570,599
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. ( 56,059,597)
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. (
286,255)
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 (
2,502,146)
Deferred loss
564,011
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.
2,030,776
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 (
11,352,654)
Deferred outflows related to pensions
2,301,907
Deferred inflows related to pensions (
1,490,711)
Total OPEB liability (
2,653,072)
Deferred outflows related to OPEB
622,588
Deferred inflows related to OPEB (
333,199)
Net Position of Governmental Activities $
137,531,279
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, 2021
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
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)
Issuance of refunding debt
Premium on refunding debt
Payment to refunding escrow agent
Issuance of capital lease
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
$ 27,913,222
1,593,382
1,628,589
637,638
1,623,282
29,147
781,333
34,206,593
724,993
12,333
501.922
1,239,248
$ 7,102,016
1,593
125,000
7,228,609
6,008,482 - -
17,166,400 - -
1,382,185 - -
2,494,684 - -
1,040,276 - -
3,858,317 - -
566,078 4,582,289 -
4,955,000
1,801,467
- - 140,140
32,516,422 4,582,289 6,896,607
1,690,171 ( 3,343,041) 332,002
136,535
( 2,317,117)
( 2,180,582)
( 490,411)
16,968,978
$ 16,478,567
The accompanying notes are an integral part
of these financial statements. 20
6,384,362
( 7,915)
6.376.447
3,033,406
10,137,558
$ 13,170,964
7,555,000
629,992
( 8,223,452)
7,915
( .5 U, 545)
301,457
785,919
$ 1,087,376
Economic
American
Nonmajor
Total
Development
Rescue Plan Act
Governmental
Governmental
Corporation
Fund
Funds
Funds
$ 5,615,928
$ -
$ 518,921
$ 41,150,087
-
-
219,513
1,812,895
-
-
912,406
2,540,995
-
-
5,844
643,482
-
303,000
1,931,599
4,582,874
56,144
243
5,153
104,613
-
-
15
1,408,270
5,672,072
303,243
3,593,451
52,243,216
306,025
-
266,408
6,580,915
-
303,000
638,018
18,107,418
-
-
-
1,382,185
-
-
39,995
2,534,679
-
-
19,708
1,059,984
528,442
-
72,464
4,459,223
-
-
66,889
5,215,256
-
-
-
4,955,000
-
-
-
1,801,467
-
-
-
140,140
834,467
303,000
1,103,482
46,236,267
4,837,605
243
2,489,969
6,006,949
-
-
-
7,555,000
-
-
-
629,992
-
-
-
( 8,223,452)
-
-
-
136,535
-
-
3,109
6,395,386
( 4,050,000)
-
-
( 6,375,032)
( 4,050,000)
-
3,109
118,429
787,605
243
2,493,078
6,125,378
21,018,626
-
2,082,573
50,993,654
$ 21,806,231
$ 243
$ 4,575,651
$ 57,119,032
21
THIS PAGE LEFT BLANK INTENTIONALLY
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, 2021
Net Changes in Fund Balances - Governmental Funds $ 6,125,378
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 12,233,480
Depreciation expense ( 6,716,836)
The net effect of miscellaneous transactions involving capital assets (i.e., sales,
trade -ins, or donations) is to decrease net position. ( 25,975)
Revenues in the Statement of Activities that do not provide current financial
resources are not reported as revenues in the funds.
Grants ( 1,526,256)
Property taxes 45,488
Court fines 45,207
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.
Issuance of long -term debt ( 8,321,527)
Payment to escrow agent 8,223,452
Repayment of principal of long -term debt 5,173,199
Amortization of loss on refunding ( 99,045)
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 ( 210,522)
Net pension liability 887,699
Total OPEB liability ( 125,871)
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. 42,067
Change in Net Position of Governmental Activities $ 15,749,938
The accompanying notes are an integral part
of these financial statements. 22
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, 2021
Business -Type
1,259,823 $
Activities
Governmental
Enterprise Funds
Activities
Total
3,185,772
Water and Schertz Enterprise
Internal
Sewer System EMS Fund
Service Fund
$ 8,197,023 $
1,259,823 $
9,456,846 $
1,163,351
-
1,163,351
3,273,755
3,185,772
6,459,527
-
16,139
16,139
6,324
-
6,324
82,883
101,572
184,455
-
2,311
2,311
12,723,336
4,565,617
17,288,953
20,271,954 - 20,271,954
1,830,287 - 1,830,287
16,741,666 - 16,741,666
1,844,488
-
1,844,488
70,245
-
70,245
3,609,126
-
3,609,126
3,282,108
2,932,859
6,214,967
105,832,113
-
105,832,113
19,942,794
-
19,942,794
( 36,963,688)
( 1,806,520) (
38,770,208)
136,461,093
1,126,339
137,587,432
149,184,429
5,691,956
154,876,385
DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on refunding 25,027 - 25,027
Deferred OPEB related outflows 62,568 132,280 194,848
Deferred pension related outflows 227,731 506,778 734,509
Total Deferred Outflows of Resources 315,326 639,058 954,384
The accompanying notes are an integral part
of these financial statements. 23
LIABILITIES
Current liabilities:
Accounts payable
Accrued liabilities
Retainage payable
Customer deposits
Accrued interest
Unearned revenue
Current portion of long -term liabilities:
Compensated absences
Total OPEB liability
Long -term debt
Total Current Liabilities
Noncurrent liabilities:
Compensated absences
Total OPEB liability
Net pension liability
Long -term debt
Total Noncurrent Liabilities
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Deferred OPEB related inflows
Deferred pension related inflows
Total Deferred Inflows of Resources
NET POSITION
Net investment in capital assets
Restricted for construction
Unrestricted
Total Net Position
CITY OF SCHERTZ, TEXAS
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
SEPTEMBER 30, 2021
Business -Type
133,313 $
Activities
Governmental
Enterprise Funds
Activities
Total
-
Water and Schertz Enterprise
Internal
Sewer System EMS Fund
Service Fund
$ 2,223,567 $
133,313 $
2,356,880 $ -
100,403
269,674
370,077 -
28,747
-
28,747 -
627,152
-
627,152 -
57,968
2,145
60,113 -
455,463
1,112
456,575 -
25,045
47,926
72,971 -
5,153
11,468
16,621 -
1,065,000
262,436
1,327,436 -
4,588,498
728,074
5,316,572 -
100,178
191,703
291,881 -
257,320
572,621
829,941 -
1,123,136
2,499,350
3,622,486 -
13,138,922
331,565
13,470,487 -
14,619,556
3,595,239
18,214,795 -
19,208,054
4,323,313
23,531,367 -
32,964
73,356
106,320 -
147,478
328,188
475,666 -
180,442
401,544
581,986 -
83,409,544
532,338
83,941,882 -
8,368,736
-
8,368,736 -
38,332,979
1,073,819
39,406,798 -
$ 130,111,259 $
1,606,157 $
131,717,416 $ -
24
THIS PAGE LEFT BLANK INTENTIONALLY
CITY OF SCHERTZ, TEXAS
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2021
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 and transfers
Transfers out
Capital contributions - impact fees
Capital contributions - dedicated assets
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
Activities
Governmental
Enterprise Funds
Activities
Total
Internal
Water and Schertz Enterprise
Service
Sewer System EMS Funds
Fund
$ 27,245,602 $ 7,709,027 $ 34,954,629 $
182,414 - 182,414
602,598 151,670 754,268
28,030,614 7,860,697 35,891,311
2,432,081
3,280,186
15,987,246
531,733
2.534.305
24,765,551
3,265,063
5,552,786
737,866
721,572
486,102
286.344
7,784,670
76,027
66,906 1,448
296,913 -
( 515,413) -
( 151,594) 1,448
3,113,469 77,475
( 20,354) -
1,691,371 -
5,243,820 -
7,984,867
4,018,052
16,708,818
1,017,835
2.820.649
32,550,221
3,341,090
68,354
296,913
515,413
150.146
3,916,301
3,ylb,JU1
3,916,301
3,916,301
3,190,944 -
( 20,354) -
1,691,371 -
5,243,820 -
10,028,306
77,475
10,105,781
120,082,953
1,528,682
121,611,635
$ 130,111,259
$
1,606,157
$
131,717,416
$
25
CITY OF SCHERTZ, TEXAS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2021
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 NON - CAPITAL FINANCING
ACTIVITIES
Transfers to other funds
Net Cash Used in Non - Capital Financing Activities
CASH FLOWS FROM CAPITAL & RELATED FINANCING
ACTIVITIES
Acquisition and construction of capital assets
Capital contributions - impact fees
Interest paid on long -term debt
Principal paid on long -term debt
Net Cash Used in Capital and Related
Financing Activities
( 3,496,433} ( 500,231) ( 3,996,664}
CASH FLOWS FROM INVESTING ACTIVITIES
Business -Type
Sale (purchase) of investments
( 22,071)
Activities
Payments from leases
Governmental
- 296,913
Enterprise Funds
66,906
Activities
Water and
Schertz
Total
Internal
Sewer System
EMS
Enterprise
Service Fund
$ 28,887,299
$ 7,161,623
$ 36,048,922
$ -
-
-
-
3,916,301
( 2,731,693)
( 5,213,104)
( 7,944,797)
( 3,916,301)
( 23,703,472)
( 1,587,773)
( 25,291,245)
-
2,452,134
360,746
2,812,880
-
( 20,354)
-
( 20,354)
-
( 20,354)
-
( 20,354)
-
( 2,956,008)
( 319,398)
( 3,275,406)
-
1,691,371
-
1,691,371
-
( 701,796)
( 3,880)
( 705,676)
-
( 1,530,000)
( 176,953)
( 1,706,953)
-
( 3,496,433} ( 500,231) ( 3,996,664}
CASH FLOWS FROM INVESTING ACTIVITIES
Sale (purchase) of investments
( 22,071)
- ( 22,071)
Payments from leases
296,913
- 296,913
Interest and investment earnings
66,906
1,448 68,354
Net Cash Provided By (Used in) Investing Activities
341,748
1,448 343,196
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.
( 722,905) ( 138,037) ( 860,942)
11,686,996 1,397,860 13,084,856
17,504,886 - 17,504,886
29,191,882 1,397,860 30,589,742
8,197,023 1,259,823 9,456,846
20,271,954 - 20,271,954
$ 28,468,977 $ 1,259,823 $ 29,728,800 $
26
CITY OF SCHERTZ, TEXAS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2021
Net cash provided by operating activities
SCHEDULE OF NON -CASH CAPITAL ACTIVITIES
Issuance of capital lease
Developer contributions of capital assets
$ 2,452,134 $ 360,746 $ 2,812,880 $
- $ 409,606 $ 409,606 $
5,243,820 - 5,243,820
Total non -cash capital activities $___5,243 820 $ 409,606 $ 5,653,426 $
27
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)
$ 3,265,063
$ 76,027 $
3,341,090 $ -
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities:
Depreciation
2,534,305
286,344
2,820,649 -
Change in investment in joint venture
( 2,438,628)
- (
2,438,628) -
Decrease (increase) in accounts receivable
778,999
( 700,162)
78,837 -
Decrease (increase) in inventory
29,834
22,393
52,227 -
Increase (decrease) in deferred pension outflows
7,891
( 110,010) (
102,119) -
Increase (decrease) in deferred OPEB outflows
14,419
( 76,138) (
61,719) -
Increase (decrease) in accounts payable
( 1,495,513)
335,374 (
1,160,139) -
Increase (decrease) in accrued liabilities
( 44,993)
( 210,993) (
255,986) -
Increase (decrease) in customer deposits
66,961
-
66,961 -
Increase (decrease) in unearned revenue
10,725
1,088
11,813 -
Increase (decrease) in compensated absences
( 806)
85,420
84,614 -
Increase (decrease) in net pension liability
( 177,144)
336,370
159,226 -
Increase (decrease) in deferred OPEB inflows
( 22,979)
17,549 (
5,430) -
Increase (decrease) in deferred pension inflows
14,358
21,984
36,342 -
Increase (decrease) in total OPEB liability
( 90,358)
275,500
185,142 -
Net cash provided by operating activities
SCHEDULE OF NON -CASH CAPITAL ACTIVITIES
Issuance of capital lease
Developer contributions of capital assets
$ 2,452,134 $ 360,746 $ 2,812,880 $
- $ 409,606 $ 409,606 $
5,243,820 - 5,243,820
Total non -cash capital activities $___5,243 820 $ 409,606 $ 5,653,426 $
27
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CITY OF SCHERTZ, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2021
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.
r
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 Proiects 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 American Rescue Plan Act Fund records revenue and expenditures related to the City's COVID-
19 funding from the American Rescue Plan Act.
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.
OITVJ
As a general rule, the effect of interfund activity has been eliminated from the government -wide financial
statements. Exceptions to this are charges between the City's general government function and various
other functions of the City. Eliminations of these charges would distort the direct costs and program
revenues reported for the various functions concerned.
Amounts reported as program revenues include 1) charges to customers or applications for goods, services,
or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions.
General revenues include all taxes and investment earnings.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues
and expenses generally result from providing services and producing and delivering goods in connection with
a proprietary fund's principal ongoing operations. The principal operating revenues of the water and sewer
enterprise fund and the EMS enterprise fund are charges to customers for sales and services. Operating
expenses for enterprise funds include the cost of sales and services, administrative expenses, and
depreciation on capital assets. All revenues and expenses not meeting this definition are reported as
nonoperating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted
resources first, then unrestricted resources as they are needed.
D. Cash and Cash Equivalents
The City's cash and cash equivalents are considered to be cash on hand and demand deposits. 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 ". The cost of prepaid items is recorded as expenditures /expenses when consumed rather than
when purchased.
H. Restricted Assets
Certain proceeds from bonds, resources set aside for their repayment, and other restrictive agreements are
classified as restricted assets on the balance sheet because they are maintained in separate bank accounts
and their use is limited by applicable bond covenants and /or contractual arrangements.
I. Capital Assets
Capital assets, which include land, buildings and improvements, machinery, equipment, vehicles, and
infrastructure assets (i.e., roads, bridges, sidewalks, and similar items), are reported in the applicable
governmental or business -type activities columns in the government -wide financial statements. Capital
assets are defined by the City as assets with an initial, individual cost of more than $5,000 and an estimated
useful life in excess of one year. When capital assets are purchased, they are capitalized and depreciated in
the government -wide financial statements and the proprietary fund statements. Capital assets are recorded
as expenditures of the current period in the governmental fund financial statements.
Capital assets are valued at cost where historical records are available and at an estimated cost where no
records exist. Donated capital assets, 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.
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 overthe
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. Deficit Equity
At September 30, 2021, the City has a deficit unassigned fund balance of $681,330 in the Grant Fund. This
deficit is due to timing differences between expenditures and reimbursements of grant funds.
S. Budgetary Information
Annual budgets are adopted on a basis consistent with generally accepted accounting principles for all
governmental funds except the American rescue plan act fund, library advisory board fund, grant special
revenue fund, police department forfeiture special revenue fund and the capital projects fund, which adopts
project - length budgets.
T. Reclassifications
Certain reclassifications have been made in the presentation of the September 30, 2021 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, 2021, the City had the following cash, cash equivalents and investments:
Investment type:
LOGIC
Lone Star Investment Pool
Texas CLASS
Certificates of Deposit
U.S. Agency Securities
Subtotal
Plus: depository and petty cash
Total cash and investments
Reported Weighted Average
Value Maturity (days)
$ 19,151,617
55
26,991,728
46
29,362,606
53
4,416,598
118
3.269.952
404
83,192,501
9,936,693
$ 93,129,194
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.
34
Interest Rate Risk. As a means of limiting its exposure to fair value losses arising from rising interest rates,
the City's investment policy limits the City's investment portfolio to highly liquid investments to meet
unanticipated cash requirements, and /or to redeploy cash into other investments expected to outperform
current holdings.
Credit Risk. State law limits investments in certificates of deposit to guaranteed or insured by the Federal
Deposit Insurance Corporation, or its successor or the National Credit Union Share Insurance Fund, or its
successor and investment pools continuously rated no lower than AAA or an equivalent rating by at least
one nationally recognized rating service. The City's investment policy does not further limit its investment
choices. As of September 30, 2021, 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, 2021, 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, 2021, 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, 2020, upon which the fiscal year 2021 levy was based, was $4,070,815,340 (i.e.,
market value less exemptions).
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, 2021, was $0.5121 per $100 of assessed
value, which means that the City has a tax margin of $1.9879 for each $100 value and could increase its
annual tax levy by approximately $80,923,738 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.
35
C. Receivables
Receivables as September 30, 2021 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:
General Fund
Delinquent property taxes receivable
Court fines
Total General Fund
Debt Service Fund
Delinquent property taxes receivable
Total Debt Service Fund
Total Governmental Funds
Unavailable
$ 273,092
1,623,906
1,896,998
133,778
133,778
$ 2,030,776
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
Business -type Activities
Governmental Water/
Activities Sewer EMS Totals
$ 564,011 $ 25,027 $ - $ 589,038
2,301,907 227,731 506,778 3,036,416
243,287 24,069 53,561 320,917
379,301 38,499 78,719 496,519
$ 3,488,506 $ 315,326 $ 639,058 $ 4,442,890
$ 306,961 $ - $ - 306,961
1,490,711 147,478 328,188 1,966,377
83,693 8,280 18,426 110,399
249,506 24,684 54,930 329,120
$ 2,130,871 $ 180,442 $ 401,544 $ 2,712,857
36
Governmental Activities
Business -type
Activities
General
Capital
Economic
Debt
Nonmajor
Water and
Schertz
Fund
Projects
Development
Service
Funds
Sewer Fund
EMS
Receivables:
Property taxes
$ 290,523 $
$ -
$ 142,317
$
$
$
Sales tax
2,108,428
1,054,213
-
Occupancy taxes
-
-
64,942
Franchise taxes
521,521
-
Customers
-
3,306,756
7,081,986
Court fines
3,989,942
-
-
Grants
-
258,142
-
Other
41,394
-
7,949
-
-
-
-
Gross receivables
6,951,808
258,142
1,062,162
142,317
64,942
3,306,756
7,081,986
Less: allowance for
uncollectible accounts
( 2,390,601}
-
-
( 8,539)
-
( 33,001)
( 3,896,214)
Net receivables
$ 4,561,207 $
258,142
$ 1,062,162
$ 133,778
$ 64,942
$ 3,273,755
$ 3,185,772
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:
General Fund
Delinquent property taxes receivable
Court fines
Total General Fund
Debt Service Fund
Delinquent property taxes receivable
Total Debt Service Fund
Total Governmental Funds
Unavailable
$ 273,092
1,623,906
1,896,998
133,778
133,778
$ 2,030,776
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
Business -type Activities
Governmental Water/
Activities Sewer EMS Totals
$ 564,011 $ 25,027 $ - $ 589,038
2,301,907 227,731 506,778 3,036,416
243,287 24,069 53,561 320,917
379,301 38,499 78,719 496,519
$ 3,488,506 $ 315,326 $ 639,058 $ 4,442,890
$ 306,961 $ - $ - 306,961
1,490,711 147,478 328,188 1,966,377
83,693 8,280 18,426 110,399
249,506 24,684 54,930 329,120
$ 2,130,871 $ 180,442 $ 401,544 $ 2,712,857
36
E. Interfund Balances and Transfers
The composition of interfund balances as of September 30, 2021 is as follows:
Due From Due To Amount Purpose
EMS General $ 16,139 Short -term pool cash loan
General Nonmajor Governmental 678,444 Short -term pool cash loan
The following schedule briefly summarizes the City's transfer activity for the year ending September 30,
2021:
Transfer From
Transfer To
Amount
Purpose
General
Nonmajor governmental
$ 3,109
Suplement funds sources
General
Capital Projects
2,314,008
Funding for various capital projects
Capital Projects
Debt Service
7,915
Suplement funds sources
EDC
Capital Projects
4,050,000
Funding for various capital projects
Water and Sewer System
Capital Projects
20,354
Funding for various capital projects
F. Capital Assets
Capital asset activity for the year ended September 30, 2021 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 Reclassifications / Ending
Balance Additions Retirements Balance
$ 8,074,199 $ 236,787 $ - $ 8,310,986
24,826,910 4,024,285 ( 2,156,044) 26,695,151
32,901,109 4,261,072 ( 2,156,044) 35,006,137
44,447,749 141,028 - 44,588,777
14,552,416 726,581 ( 445,450) 14,833,547
119,945,442 7,104,799 2,156,044 129,206,285
178,945,607 7,972,408 1,710,594 188,628,609
( 16,823,636) ( 1,624,881) - ( 18,448,517)
( 7,430,818) ( 1,180,477) 445,450 ( 8,165,845)
( 43,512,332) ( 3,937,453) - ( 47,449,785)
( 67,766,786) ( 6,742,811) 445,450 ( 74,064,147)
111,178,821 1,229,597 2,156,044 114,564,462
$ 144,079,930 $ 5,490,669 $ - $ 149,570,599
37
Business -type activities:
Capital assets, not being depreciated:
Land
Water rights
Construction in progress
Total capital assets, not being
depreciated
Capital assets being depreciated:
Buildings and improvements
Machinery, equipment, and vehicles
Infrastructure
Total assets being
depreciated
Less accumulated depreciation for:
Buildings and improvements
Machinery, equipment, and vehicles
Infrastructure
Total accumulated depreciation
Total capital assets being
depreciated, net
Business -type activities capital
assets, net
Beginning Reclassifications / Ending
Balance Additions Retirements Balance
$ 1,844,488 $ - $ - $ 1,844,488
70,245 - - 70,245
17,266,273 2,773,773 ( 97,252) 19,942,794
19,181,006 2,773,773 ( 97,252) 21,857,527
3,635,532 - ( 26,406) 3,609,126
5,976,040 1,062,704 ( 823,778) 6,214,966
100,588,293 5,243,820 - 105,832,113
110,199.865 6.306.524 ( 850.184) 115.656.205
968,711) ( 152,395) - ( 1,121,106)
5,758,894) ( 572,191) 787,488 ( 5,543,597)
30,009,441) ( 2,096,063) - ( 32,105,504)
36.737.046) ( 2.820.649) 787.488 ( 38.770.207)
73,462,819 3,485,875 ( 62,696) 76,885,998
$ 92,643,825 $ 6,259,648 $( 159,948) $ 98,743,525
Depreciation expense was charged to functions /programs of the primary government as follows:
Governmental activities:
$
General government
$ 702,442
Public safety
1,108,487
Public environment
3,995,466
Parks and recreation
886,986
Cultural
42,377
Administration
7,053
Total
$ 6,742,811
Business -type activities:
Water and sewer system
$
2,534,305
EMS
2022
286,344
Total
$
2,820,649
Total Depreciation
$
9,563,460
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
2022
$ 250,687
2023
263,221
2024
276,382
2025
290,201
2026
304,711
2027 -2028
655,891
$ 2,041,093
38
H. Lonci -Term Debt
Changes in long -term debt for the year ending September 30, 2021 are as follows:
Governmental activities:
General Obligation Bonds
Certificates of Obligation
General Obligation Bonds -
Private Placement
Tax Notes -
Private Placement
Premium from Debt
Capital Lease
Compensated Absences
Total governmental
Business -type activities:
General Obligation Bonds
Certificates of Obligation
General Obligation Bonds -
Private Placement
Tax Notes -
Private Placement
Unamortized Premium
Capital Lease
Compensated Absences
Total business -type
Bonds Payable
Beginning Refunded/ Ending Amount Due
Balance Issued Retired Balance Within One Year
$ 34,615,000
$
7,555,000
$( 8,400,000)
$ 33,770,000
$
2,655,000
15,235,000
-
( 1,035,000)
14,200,000
1,070,000
10,005,000
-
( 3,385,000)
6,620,000
925,000
345,000
-
( 190,000)
155,000
155,000
2,170,381
629,992
( 298,227)
2,502,146
-
17,134
136,535
( 17,134)
136,535
27,307
967,540
597,538
( 387,016)
1,178,062
235,612
$ 63,355,055
$
8,919,065
$L 13,712,377)
$ 58,561,743
$
5,067,919
$ 2,645,000
$
-
$( 590,000)
$ 2,055,000
$
370,000
11,505,000
-
( 850,000)
10,655,000
605,000
1,040,000
-
( 200,000)
840,000
205,000
150,000
-
( 150,000)
-
-
828,781
-
( 55,979)
772,802
-
132,468
409,606
( 66,953)
475,121
147,436
249,269
215,291
( 99,708)
364,852
72,971
$ 16,550,518
$
624,897
$( 2,012,640)
$ 15,162,775
$____1,400,407
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 $37.5 million and
sales tax revenue was $16.8 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.
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 form 1.50% to 4.00% and will mature in February
2036. These bonds refunded the General Obligation Refunding Bonds, Series 2011 to provide net present
value savings of $1,777,441, including the City's cash contribution of $174,800. The bonds are secured by
the City's ad valorem tax revenue.
Prior Year Refunding of Debt
The City defeased certain outstanding bonds by placing proceeds of new bonds in irrevocable trusts to
provide for all future debt service payments. Accordingly, the respective trust accounts and liability for the
defeased bonds are not included in the City's financial statements. As of September 30, 2021, the City does
not have bonds considered defeased and outstanding.
39
A summary of the terms of long-term debt outstanding at September 30, 2021, is as follows:
Total Business-Type Long-Term Obligations
40
$ 13,550,000
Issue
Amount
Maturity
Rate
Balance
Governmental Activities
General Obligation Bonds
2012 Series $
7,625,080
2032
2.00v+
*,720,000
aUz1 Series, Refunding
8,450,000
2030
2.0% -4.0%
7,800,000
aOzs Series, Refunding
4,185,000
2031
2.0%-3.25v+
1,140,000
2016 Series
5,880,000
2036
2.0% -4.0%
*,595,000
2017 Series
3,935,000
2037
2.0%-4.0%
3,335,000
2Oz8 Series, Refunding
5,830,000
2033
3.125%-5%
4,635,000
2020 Series, Refunding
7,555,000
2036
1.5% -4%
7,555,000
Private Placement obligations
aOO7 Series GO
6,000,000
2027
*.07%
2,265,000
au18 Series GO Refunding
6,035,000
2028
2.12%
4,355,000
au1sx Tax Notes
1'020.000
2023
1s4%
zss'onu
Certificates ofObligation
2nz6 Series A
2'375.000
2036
M%-4.O%
1.495'000
2oz6 Series e
1'175.000
2036
3.0va-3.75m
1.190'000
2017 Series
*'yas.nun
2037
3um-3.75%
a.ozs'oon
2018 Series
*'845'000
2038
s�om sn%
4.180.000
2019 Series
*'ozs'nno
zoso
zs% s%
Total Governmental Long-Term Obligations
$
54,745,000
Issue
Amount
Maturity
Rate
Balance
Business-type Activities
General Obligation Bonds
zO18 Series, Refunding
2,740,000
2026
3.125vm'5% $
2,055,000
Certificates ofObligation
2013 Series
4'965'000
2033
2.0%-4,09a
2.275.000
2017 Series
510'000
znzz
3.O%-3.7s%
115'000
2018 Series
s'sys'non
2028
3.0m-5,0n"
5.040.000
2019 Series
a'*ao'nnn
znas
2.5m-5%
3.225.000
Private Placement obligations
2013 Series GO Refunding
z'zsn'ouo
2025
2.58m
Total Business-Type Long-Term Obligations
40
$ 13,550,000
Annual future debt service requirements of bonded debt as of September 30, 2021, are as follows:
Governmental activities:
General Obligation Bonds
Certificates of Obligation
Year Ended
General Obligation Bonds
Certificates of Obligation
Year Ended
September 30,
Principal
Interest
Total
September 30,
Principal
Principal
Interest
Interest
Total
Total
Principal
Interest
Total
2022
$
2,655,000
$
1,341,539
$
3,996,539
$
1,070,000
$
472,219
$
1,542,219
2023
$
2,750,000
$
1,046,890
$
3,796,890
2023
1,120,000
390,000
432,319
74,500
1,552,319
2024
2,850,000
970,158
3,820,158
2024
1,010,000
410,000
391,244
54,500
1,401,244
2025
2,250,000
889,602
3,139,602
2025
905,000
435,000
352,719
33,375
1,257,719
2026
2,340,000
808,430
3,148,430
2026
825,000
450,000
319,094
11,250
1,144,094
2027 -2031
14,020,000
2,619,068
16,639,068
2027 -2031
3,630,000
-
1,201,041
-
4,831,041
2032 -2036
6,645,000
597,699
7,242,699
2032 -2036
4,245,000
-
575,234
-
4,820,234
2037 -2040
260,000
4,225
264,225
2037 -2040
1,395,000
-
49,616
-
1,444,616
Total
$
33,770,000
$
8,277,612
$
42,047,612
$
14,200,000
$
3,793,485
$
17,993,485
2,322,125
$
10,655,000
$
3,181,869
$
13,836,869
Private Placement Debt
Private Placement Debt
General Obligation Bonds
Tax Notes
General
Year Ended
Tax Notes
Year Ended
September 30,
Principal
Interest
Total
Principal
Interest
Total
Total
Principal
Interest
Total
2022
$
925,000
$
171,392
$
1,096,392
$
155,000
$
2,387
$
157,387
2023
224,028
950,000
-
144,740
1,094,740
-
-
-
-
2024
218,739
980,000
-
117,214
-
1,097,214
-
-
-
-
2025
223,321
1,010,000
-
88,758
1,098,758
-
-
-
-
2026
217,774
1,035,000
-
59,428
1,094,428
-
-
$
-
$
-
2027 -2028
883,860
1,720,000
-
36,270
1,756,270
-
-
-
Total
$
6,620,000
$
617,801
$
7,237,801
$
155,000
$
2,387
$
157,387
Business -type activities:
CFI
General Obligation Bonds
Certificates of Obligation
Year Ended
September 30,
Principal
Interest
Total
Principal
Interest
Total
2022
$
370,000
$
93,500
$
463,500
$
605,000
$
378,775
$
983,775
2023
390,000
74,500
464,500
510,000
356,300
866,300
2024
410,000
54,500
464,500
530,000
333,613
863,613
2025
435,000
33,375
468,375
550,000
310,250
860,250
2026
450,000
11,250
461,250
580,000
285,788
865,788
2027 -2031
-
-
-
3,280,000
1,035,775
4,315,775
2032 -2036
-
-
-
3,160,000
440,841
3,600,841
2037 -2040
-
-
-
1,440,000
40,528
1,480,528
Total
$
2,055,000
$
267,125
$
2,322,125
$
10,655,000
$
3,181,869
$
13,836,869
Private Placement Debt
General
Obligation Bonds
Tax Notes
Year Ended
September 30,
Principal
Interest
Total
Principal
Interest
Total
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
-
-
Total
$
840,000
$
43,860
$
883,860
$
-
$
$
CFI
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, 2021:
Assets:
Equipment
Less: accumulated depreciation
Total
Future minimum lease payments are as follows:
Governmental Business -type
Activities Activities
$ 136,535 $ 742,573
( 22,756) ( 331,696)
$ 113,779 $____410,877
Governmental Business -type
Year Ending September 30,
Activities
Activities
2022
$ 27,307
$ 147,796
2023
27,307
81,921
2024
27,307
81,921
2025
27,307
81,921
2026
27,307
81,922
Total payments
136,535
475,481
Less: amount representing interest
-
( 360)
Present value of minimum lease payments
$ 136,535
$ 475,121
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
$ 11,352,654 $ 1,123,136 $ 2,499,350 $ 14,975,140
$ 3,194 $ 316 $ 703 $ 4,213
48,897 4,837 10,765 64,499
52,091 5,153 11,468 68,712
779,982 77,165 171,718 1,028,865
1,820,999 180,155 400,903 2,402,057
2,600,981 257,320 572,621 3,430,922
$ 2,653,072 $ 262,473 $ 584,089 $ 3,499,634
Business -type Activities
Governmental Water/
Activities Sewer EMS Totals
$ 2,203,776
$ 218,023 $
485,174 $
2,906,973
71,476
1,990
40,710
114,176
121,849
( 1,772)
94,777
214,854
$ 193,325
$ 218 $
135,487 $
329,030
C 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 annual comprehensive financial report (ACFR) 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, 2020 valuation and measurement date, the following employees were covered by the
benefit terms:
Inactive employees or beneficiaries currently receiving benefits 126
Inactive employees entitled to but not yet receiving benefits 223
Active employees 354
Total 703
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 16.32% and 15.92% in calendar years 2021 and 2020, respectively.
The City's contributions to TMRS for the year ended September 30, 2021 were $3,700,948 and were equal
to the required contributions.
Net Pension Liability. The City's Net Pension Liability (NPL) was measured as of December 31, 2020, and
the Total Pension Liability (TPL) 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.
43
Actuarial Assumptions
The Total Pension Liability in the December 31, 2020 actuarial valuation was determined using the following
actuarial assumptions:
Inflation 2.50% per year
Overall payroll growth 2.75% per year
Investment rate of return 6.75% net of pension 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 3.5% and 3.0% 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, 2018. 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 of TMRS.
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 a 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).
Asset Class
Long -Term Expected
Real Rate of Return
Target Allocation (Arithmetic)
Core Fixed Income
10.00%
5.30%
Non -Core Fixed Income
20.00%
1.25%
Global Public Equity
30.00%
4.14%
Real Estate
10.00%
3.85%
Real Return
10.00%
4.00%
Absolute Return
10.00%
3.48%
Private Equity
10.00%
7.75%
Total 100.0%
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, 2020:
Balance at 12/31/2019
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
Netchanges
Balance at 12/31/2020
Increase (Decease)
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a) (b) (a) -(b)
$ 78,211,777 $ 62,639,563 $ 15,572,214
3,761,994 - 3,761,994
5,326,206 - 5,326,206
154,592) - ( 154,592)
3,327,434
- 1,474,466
- 4,760,749
2,372,023) ( 2,372,023)
- ( 30,767)
- ( 1,200)
6.561.585 7.158.659
( 3,327,434)
( 1,474,466)
( 4,760,749)
30,767
1,200
( 597,074)
$ 84,773,362 $ 69,798,222 $ 14,975,140
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 $ 29,246,356 $ 14,975,140
$ 3,486,611
Pension Expense and Deferred Outflows /Inflows of Resources Related to Pensions. For the year
ended September 30, 2021, the City recognized pension expense of $2,906,973. Also, as of September 30,
2021, 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
Total
C 1-1
Deferred Outflows Deferred Inflows
of Resources of Resources
$ 173,183 $ 191,035
162,538
2,700,695
$ 3,036,416
1,775,342
$ 1,966,377
$2,700,695 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, 2022. 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,
2022
$( 530,825)
2023
50,171
2024
( 1,016,088)
2025
( 130,884)
2026
( 3,030)
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, 2020, the valuation and measurement date, consisted of:
Inactive employees or beneficiaries currently receiving benefits 98
Inactive employees entitled to but not yet receiving benefits 65
Active employees 354
Total 517
Contributions. The City contributes to the SDBF at a contractually required rate as determined by an
annual actuarial valuation, which was 0.13% for 2021 and 0.12% for 2020, of which 0.05% and 0.02 %,
respectively, 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 year ended September 30, 2021 were $4,575
representing contributions for both active and retiree coverage, which equaled the required contributions
each year.
C r
Total OPEB Liability. The Total OPEB Liability in the December 31, 2020 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
Mortality Rates - Disabled Retirees
2020
2.50% per annum
2.00%
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.
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 by 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, 2020 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 2.00% 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,
2020.
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
(1.00 %)
Discount Rate
(2.00 %)
Total SDB OPEB Liability $ 1,306,428 $ 1,033,078
C f1
1% Increase in
Discount Rate
(3.00 %)
829,320
Changes in the Total OPEB Liability. Total City's Total OPEB Liability (TOL), based on the above actuarial
factors, as of December 31, 2020, 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 2.00 %.
OPEB Expense and Deferred Inflows and Outflows of Resources Related to OPEB. For the year
ended September 30, 2021, the City recognized OPEB expense of $114,175. Also, as of September 30,
2021, 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
Deferred Outflows Deferred Inflows
of Resources of Resources
50,917 $ 78,515
266,690 31,884
3,310 -
Total $ 320,917 $ 110,399
$3,310 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, 2022. 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
Total OPEB
Ended September 30,
Liability
Balance at 12/31/2019
$ 810,086
Changes for the year:
40,707
Service cost
50,554
Interest
22,915
Difference between expected and actual experience
( 4,382)
Changes of assumptions or other inputs
158,118
Benefit payments, including refunds of employee contributions
( 4,213)
Net changes
222,992
Balance at 12/31/2020
$ 1,033,078
Changes in assumptions and other inputs reflect a change in the discount rate from 3.71% to 2.00 %.
OPEB Expense and Deferred Inflows and Outflows of Resources Related to OPEB. For the year
ended September 30, 2021, the City recognized OPEB expense of $114,175. Also, as of September 30,
2021, 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
Deferred Outflows Deferred Inflows
of Resources of Resources
50,917 $ 78,515
266,690 31,884
3,310 -
Total $ 320,917 $ 110,399
$3,310 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, 2022. 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,
2022
$ 40,707
2023
40,707
2024
40,707
2025
35,388
2026
29,262
Thereafter
20,437
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.
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, 2020, 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
48
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, 2020, was calculated as follows:
The actuarial valuation was performed as of December 31, 2019, and update procedures were used to roll
forward the TOL to December 31, 2020. Changes of assumptions reflect a change in the discount rate from
2.75% as of December 31, 2019 to 2.00% as of December 31, 2020, 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 2.00% as well as what the
City's TOL would be if it were calculated using a discount rate that is 1- percentage point lower (1.00 %) and
1- percentage point higher (3.00%) than the current rate:
1% Decrease in
Total OPEB
Discount Rate
Liability
Balance at 12/31/2019
$ 2,163,923
Changes for the year:
$ 2,466,556 $ 2,253,746
Service cost
141,084
Interest
60,561
Difference between expected and actual experience
4,341
Changes of assumptions or other inputs
161,146
Benefit payments, including refunds of employee contributions
( 64,499)
Netchanges
302,633
Balance at 12/31/2020
$ 2,466,556
The actuarial valuation was performed as of December 31, 2019, and update procedures were used to roll
forward the TOL to December 31, 2020. Changes of assumptions reflect a change in the discount rate from
2.75% as of December 31, 2019 to 2.00% as of December 31, 2020, 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 2.00% as well as what the
City's TOL would be if it were calculated using a discount rate that is 1- percentage point lower (1.00 %) and
1- percentage point higher (3.00%) than the current rate:
1% Decrease in
1% Increase in
Discount Rate
Discount Rate Discount Rate
(1.00 %)
(2.00 %) (3.00 %)
Total OPEB liability - retiree health $ 2,697,077
$ 2,466,556 $ 2,253,746
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 or 1- percentage point higher than the current healthcare
cost trends:
10% Decrease
Total OPEB liability - retiree health $ 2,150,561
Current Healthcare Cost
Trend Rate Assumption 1% Increase
2,466,556 $ 2,844,413
For the year ended September 30, 2021, the City recognized OPEB expense of $214,856. Also, as of
September 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources
related to OPEB from the following sources:
Differences between expected and actual economic experience
Changes in actuarial assumptions
Contributions subsequent to the measurement date
Total
49
Deferred Outflows Deferred Inflows
of Resources of Resources
$ 14,419
420,846
61,254
$ 496,519
$ 272,039
57,081
$ 329,120
$61,254 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, 2022. 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,
2022
$ 13,209
2023
13,209
2024
13,209
2025
13,209
2026
13,209
Thereafter
40,100
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 $3,908,231 for the year ended September 30, 2021. 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 $158,006,349 (as of September 30, 2020, the most recent year for which
information is available) 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
$15,780,946. This amount reflects the City's portion of the net position of SSLGC as of September 30, 2020,
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, 2021. 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 $960,720 as of September 30, 2021.
so
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 $3,514,642 from
taxing entities (net of administrative reimbursements) and remitted $2,625,000 to the developer as of
September 30, 2021.
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, 2021, the City reimbursed $621,736 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, 2021, 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.
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
SEDC - LGC 501.101
SEDC - LGC 501.103
1-7 1
FY 2020 -21 Amt.
Est. Remaining Grant
99,784 $ 99,000
224,384 192,150
- 3,158,000
Service Concession Arrangement
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 $782,371. 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, 2021, 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 $782,371 on the government -wide
statements at year -end pursuant to the service concession arrangement, and a liability of $475,410 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 for the 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
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
185,000
225,250
410,250
2027 -2031
1,050,000
1,008,450
2,058,450
2032 -2036
1,280,000
778,600
2,058,600
2037 -2041
1,610,000
445,650
2,055,650
2042 -2044
1,140,000
92,400
1,232,400
Total
$ 5,955,000
$ 3,511,050 $
9,466,050
i- J
Construction Commitments
The City of Schertz has entered into commitments for various projects as follows:
Primary Government:
Estimated Project
Expended to
Estimated Future
Cost to City
Date
Commitment
Governmental Activities:
FM 78 and Main Street
$ 1,000,000
$ 457,027
$ 542,973
Fire Station 3
8,601,639
8,601,639
-
Pedestrian Routes Project
1,214,002
1,214,002
-
YMCA- Bathroom Reovation
549,746
549,746
-
Elbel Road Rehabilitation
1,783,000
125,133
1,657,867
Total Governmental Commitments
13,148,387
10,947,547
2,200,840
Business -Type Activities:
Woman Hollering Wastewater
5,940,424
1,227,281
4,713,143
Corbett Elevated Water Tank
5,500,000
5,156,942
343,058
FM1103 Utility Relocation
1,351,645
1,351,645
-
Crest Oak Sewer Line
1,000,000
16,555
983,445
Corbett Ground Storage
4,965,545
114,254
4,851,291
Aviation Heights WL Replacement
2,185,484
88,123
2,097,362
Transmission Main 16"
2,500,000
417,795
2,082,205
FM1518 Utility Relocation
600,000
410,081
189,919
Total Business -Type Activities
24,043,098
8,782,675
15,260,423
Total Estimated Future Commitments
$ 37,191,485
$ 19,730,222
$ 17,461,263
Risk Management
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets;
errors and omissions; and natural disasters. The City contracts with the Texas Municipal League
Intergovernmental Risk Pool, a public entity risk pool currently operating as a common risk management and
insurance program providing insurance coverage in the following areas: general liability, automobile liability
and physical damage, law enforcement liability, worker's compensation, real and personal property, mobile
equipment, and errors and omissions liability. TML is a multi - employer group that provides for a
combination of risk sharing among pool participants and stop loss coverage. Contributions are set annually
by the provider. Liability by the City is generally limited to the contributed amounts. 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.
E. Subsequent Events
In October 2021, the City issued General Obligation Refunding Bonds, Series 2021 in the amount of
$6,015,000. These bonds have interest rates ranging from 2.00% and 3.00% and will mature in February
2028. These bonds will be used to refund the General Obligation Bonds, Series 2012 and the Tax and
Limited Pledge Revenue Certificates of Obligation, Series 2013 to provide a present value savings and are
secured by the City's ad valorem tax revenue.
In January 2022, the City issued Combination Tax and Limited Pledge Revenue Certificates of Obligation,
Series 2022 in the amount of $9,390,000. These certificates have interest rates ranging from 2.125% and
3.00% and will mature in February 2032. These certificates will be used to fund multiple public improvement
projects and are secured by the City's ad valorem tax revenue and utility system revenue.
53
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. 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.
Statement No. 96, Subscription -Based Information Technology Arrangements - This Statement provides
guidance on the accounting and financial reporting for subscription -based information technology
arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2)
establishes that a SBITA results in a right -to -use subscription asset —an intangible asset —and a
corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription
payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA.
To the extent relevant, the standards for SBITAs are based on the standards established in Statement No.
87, Leases, as amended. This Statement will become effective for the City in fiscal year 2023.
54
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REQUIRED
SUPPLEMENTARY INFORMATION
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
GENERAL FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2021
w
Variance With
Final Budget
Original
Final
Actual
Positive
Budget
Budget
Amounts
(Negative)
REVENUES
Taxes
$ 26,282,550 $
26,282,550 $
27,913,222
$ 1,630,672
Permits and fees
1,824,110
1,824,110
1,593,382
( 230,728)
Service fees
1,834,581
1,834,581
1,628,589
( 205,992)
Fines and fees
904,028
904,028
637,638
( 266,390)
Intergovernmental
1,127,550
1,127,550
1,623,282
495,732
Investment earnings
135,000
135,000
29,147
( 105,853)
Miscellaneous
579,200
579,200
781,333
202,133
Total Revenues
32,687,019
32,687,019
34,206,593
1,519,574
EXPENDITURES
General government:
Council
134,488
134,988
105,990
28,998
City manager
1,276,356
1,279,134
1,249,953
29,181
Municipal court
367,740
368,465
343,557
24,908
311 customer relations
113,869
115,869
115,149
720
Planning & zoning
696,149
664,403
220,518
443,885
Legal
150,000
170,000
158,366
11,634
City secretary
208,840
211,340
204,992
6,348
Nondepartmental
1,974,475
1,627,428
1,831,744
( 204,316)
Public affairs
628,421
639,026
603,791
35,235
Engineering
878,126
921,126
870,161
50,965
Citizens assistance
330,000
330,000
290,617
39,383
Special events
32,100
32,100
20,915
11,185
Total General Government
6,790,564
6,493,879
6,015,753
478,126
Public safety:
Police department
10,172,679
10,298,956
9,955,404
343,552
Fire department
6,150,356
6,684,628
6,696,315
( 11,687)
Inspection
1,023,497
1,024,222
974,333
49,889
Total Public Safety
17,346,532
18,007,806
17,626,052
381,754
Public environment:
Streets
1,567,620
1,569,740
1,413,808
155,932
Total Public Environment
1,567,620
1,569,740
1,413,808
155,932
Parks and recreation:
Parks
1,586,590
1,753,716
1,661,873
91,843
Pools
569,878
569,878
536,674
33,204
Community /Civic Center
393,047
393,047
307,776
85,271
Total Parks and Recreation
2,549,515
2,716,641
2,506,323
210,318
Cultural:
Library
1,062,442
1,074,255
1,040,276
33,979
Total Cultural
1,062,442
1,074,255
1,040,276
33,979
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, 2021
M
Variance With
Final Budget
Original
Final
Actual
Positive
Budget
Budget
Amounts
(Negative)
EXPENDITURES (CONTINUED)
Administration:
Information technology
2,637,316
2,638,646
2,517,578
121,068
Human resources
717,584
761,719
666,390
95,329
Finance
651,798
693,967
687,036
6,931
Purchasing & asset management
243,431
244,519
247,912
( 3,393)
Building maintenance
1,631,808
1,863,808
1,663,631
200,177
Fleet service
1,061,752
1,083,597
1,025,477
58,120
Interfund charges (
2,893,732) (
2,893,732) (
2,893,814)
82
Total Administration
4,049,957
4,392,524
3,914,210
478,314
Total Expenditures
33,366,630
34,254,845
32,516,422
1,738,423
Excess of revenues over expenditures (
679,611) (
1,567,826)
1,690,171
3,257,997
OTHER FINANCING SOURCES (USES)
Proceeds from capital lease
-
-
136,535
136,535
Transfers in
95,000
95,000
-
( 95,000)
Transfers out (
592,050) (
2,259,279) (
2,317,117)
( 57,838)
Total Other Financing Sources (Uses) (
497,050) (
2,164,279) (
2,180,582)
( 16,303)
NET CHANGE IN FUND BALANCE (
1,176,661) (
3,732,105) (
490,411)
3,241,694
FUND BALANCE - BEGINNING
16,968,978
16,968,978
16,968,978
-
FUND BALANCE - ENDING $
15,792,317 $
13,236,873 $
16,478,567
$ 3,241,694
M
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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, 2021
3,521,830 3,521,330 306,025 3,215,305
572,969 573,469 528,442 45,027
4,094,799 4,094,799 834,467 3,260,332
OTHER FINANCING SOURCES (USES)
Variance With
Transfers out (
4,050,000) (
4,050,000) (
Final Budget
Original
Final
Actual
Positive
Budget
Budget
Amounts
(Negative)
$ 4,507,371 $
4,507,371 $
5,615,928
$ 1,108,557
141,000
141,000
56,144
( 84,856)
4,648,371
4,648,371
5,672,072
1,023,701
3,521,830 3,521,330 306,025 3,215,305
572,969 573,469 528,442 45,027
4,094,799 4,094,799 834,467 3,260,332
OTHER FINANCING SOURCES (USES)
Transfers out (
4,050,000) (
4,050,000) (
4,050,000) -
Total Other Financing Sources (Uses) (
4,050,000) (
4,050,000) (
4,050,000) -
NET CHANGE IN FUND BALANCE (
3,496,428) (
3,496,428)
787,605 4,284,033
FUND BALANCE - BEGINNING
21,018,626
21,018,626
21,018,626 -
FUND BALANCE - ENDING $
17,522,198 $
17,522,198 $
21,806,231 $ 4,284,033
PE
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CITY OF SCHERTZ, TEXAS
NOTES TO BUDGETARY SCHEDULES
SEPTEMBER 30, 2021
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 occupancy 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.
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, 2021, 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, 2021
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
2020 2019 2018
$ 3,761,994
$ 3,421,878
$ 3,301,265
5,326,206
4,898,478
4,505,483
( 154,592)
( 108,478)
34,393
-
263,015
-
( 2,372,023)
( 2,244,447)
( 1,914,159)
6,561,585
6,230,446
5,926,982
78,211,777
71,981,331
66,054,349
$ 84,773,362 $ 78,211,777 $ 71,981,331
$ 3,327,434
$ 3,163,340
$ 3,033,936
1,474,466
1,380,585
1,326,518
4,760,749
8,093,416
( 1,540,890)
( 2,372,023)
( 2,244,447)
( 1,914,159)
( 30,767)
( 45,681)
( 29,768)
( 1,200)
( 1,373)
( 1,554)
7,158,659
10,345,840
874,083
62,639,563
52,293,723
51,419,640
69,798,222
62,639,563
52,293,723
$ 14,975,140
$ 15,572,214
$ 19,687,608
82.34%
80.09%
72.65%
$ 21,063,794 $ 19,722,641 $ 18,896,766
71.09% 78.96% 104.19%
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
2017 2016 2015 2014
$ 3,073,538
$ 2,855,745 $
4,111,517
3,763,562
416,585
139,216
( 1,843,774)
( 1,581,272)
5,757,866
5,177,251
60,296,483
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
$ 66,054,349 $ 60,296,483 $ 55,119,232 $ 50,229,051
$ 2,793,644
$ 2,627,335 $
1,232,232
1,152,864
5,999,805
2,602,572
( 1,843,774)
( 1,581,272)
( 31,080)
( 29,385)
( 1,575)
( 1,583)
8,149,252
4,770,531
43,270,388 38,499,857
2,542,565 $ 2,403,929
1,095,260
1,077,097
53,742
1,841,586
( 1,570,211)
( 1,068,487)
( 32,727)
( 19,219)
( 1,616)
( 1,580)
2,087,013
4,233,326
36,412,844
32,179,518
51,419,640 43,270,388 38,499,857 36,412,844
$ 14,634,709 $ 17,026,095 $ 16,619,375 $ 13,816,207
77.84% 71.76% 69.85% 72.49%
$ 17,603,310 $ 16,478,620 $ 15,648,114 $ 15,389,154
83.14% 103.32% 106.21%
60
89.78%
CITY OF SCHERTZ, TEXAS
SCHEDULE OF EMPLOYER CONTRIBUTIONS
TEXAS MUNICIPAL RETIREMENT SYSTEM
FOR THE YEAR ENDED SEPTEMBER 30, 2021
Fiscal Year Ended September 30,
Actuarially determined contribution
Contributions in relation to the actuarially
determined contribution
Contribution deficiency (excess)
Covered payroll
Contributions as a percentage of covered payroll
2021 2020 2019
$ 3,700,948 $ 3,235,479 $ 3,129,413
3,700,948 3,235,479 3,129,413
22,879,083 20,401,412 19,520,269
16.18% 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
25 years
Asset valuation method
10 year smoothed market; 12% soft corridor
Inflation
2.5%
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 LIMP. 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 LIMP.
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, 2021
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
2020 2019 2018 2017
$ 50,554
$
33,528
$ 37,794
$
29,926
22,915
26,904
21,182
20,123
( 4,382)
(
105,282)
86,276
-
158,118
148,494
( 54,027)
57,257
( 4,213)
(
3,945)
( 3,779)
(
3,521)
222,992
99,699
87,446
103,785
810,086
710,387
622,941
519,156
$ 1,033,078
$
810,086
$ 710,387
$
622,941
$ 21,063,794
$
19,722,641
$ 18,896,766
$
17,603,310
4.90%
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 2.00%
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 UMP.
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, 2021
Measurement Date December 31, 2020 2019 2018 2017
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
$ 141,084 $
125,648 $
121,821 $
107,517
60,561
78,646
67,947
69,435
4,341 (
343,086)
14,962
-
161,146
275,398 (
81,106)
96,092
( 64,499) (
59,401) (
57,530) (
42,189)
302,633
77,205
66,094
230,855
2,163,923
2,086,718
2,020,624
1,789,769
$ 2,466,556 $
2,163,923 $
2,086,718 $
2,020,624
$ 20,870,983 $
19,521,924 $
18,974,951 $
16,068,891
11.82%
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.
Valuation Date:
NOTES TO SCHEDULE
December 31, 2020
Methods and Assumptions Used to Determine Contribution Rates:
Actuarial cost method Individual entry -age
Discount rate 2.00% as of December 31, 2020
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 2.75% as of December 31, 2019 to 2.00% as
of December 31, 2020.
64
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SUPPLEMENTARY INFORMATION
Comparative Schedules — Governmental Funds
General Fund
Economic Development Corporation
Debt Service Fund
Capital Projects Fund
American Recovery Program Act 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.
Grant Fund - will account for revenue and expenditures related to federal and state grant programs.
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.
THIS PAGE LEFT BLANK INTENTIONALLY
CITY OF SCHERTZ, TEXAS
COMPARATIVE BALANCE SHEETS
GENERAL FUND
SEPTEMBER 30, 2021
(WITH COMPARATIVE TOTALS FOR 2020)
ASSETS
Cash and cash equivalents
Investments
Receivables (net of allowances)
Taxes
Accounts and other
Due from other funds
Inventory
Prepaid items
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
Prepaid items
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
2021
2020
816,152
11,733,703
$ 13,417,484
2,514,059
2,507,998
2,924,472
2,393,311
1,636,735
1,854,763
678,444
-
134,373
99,871
28,090
14,916
946,454 867,708
20,596,330 21,156,051
921,978
1,180,560
1,007
60,492
16,139
40,589
2,220,765
972,066
1,074,546
141,987
123,911
16,139
39,159
2,367,808
1,896,998 1,819,265
1,896,998 1,819,265
134,373 99,871
28,090 14,916
287,199
226,092
816,152
823,452
889,139
807,140
42,416
33,408
-
2,109
116,505
104,156
907,676 687,780
902,849 891,319
598,549 1,081,160
11,755,619 12,197,575
16,478, 567 16,968,978
$ 20,596,330 $ 21,156,051
CITY OF SCHERTZ, TEXAS
COMPARATIVE SCHEDULES OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
GENERAL FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2021
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED 2020)
66
2021
2020
REVENUES
Taxes
$ 27,913,222
$ 25,000,163
Permits and fees
1,593,382
1,750,837
Service fees
1,628,589
1,724,150
Fines and fees
637,638
833,148
Intergovernmental
1,623,282
516,475
Investment earnings
29,147
300,369
Miscellaneous
781,333
559,393
Total Revenues
34,206,593
30,684,535
EXPENDITURES
Current:
General government
6,008,482
5,381,790
Public safety
17,166,400
15,690,248
Public environment
1,382,185
1,270,894
Parks and recreation
2,494,684
2,067,649
Cultural
1,040,276
1,034,435
Administration
3,858,317
2,799,004
Capital outlay
566,078
1,175,241
Debt service:
Principal
-
44,544
Total Expenditures
32,516,422
29,463,805
Excess (Deficiency) of Revenues Over Expenditures
1,690,171
1,220,730
OTHER FINANCING SOURCES (USES)
Proceeds from capital lease
136,535
-
Transfers out
( 2,317,117)
( 4,000,169)
Total Other Financing Sources (Uses)
( 2,180,582)
( 4,000,169)
NET CHANGE IN FUND BALANCE
( 490,411)
( 2,779,439)
FUND BALANCES - BEGINNING
16,968,978
19,748,417
FUND BALANCES - ENDING
$ 16,478,567
$ 16,968,978
66
CITY OF SCHERTZ, TEXAS
COMPARATIVE BALANCE SHEETS
ECONOMIC DEVELOPMENT CORPORATION
SEPTEMBER 30, 2021
(WITH COMPARATIVE TOTALS FOR 2020)
67
2021
2020
ASSETS
Cash and cash equivalents
$ 18,542,752
$ 22,032,946
Investments
2,206,135
2,169,760
Receivables, net of allowances:
Taxes
1,054,214
818,817
Accounts and other
7,949
7,949
Prepaid items
990
-
Total Assets
21,812,040
25,029,472
LIABILITIES
Accounts payable
5,809
4,010,846
Total Liabilities
5,809
4,010,846
FUND BALANCES
Restricted for:
Economic development
21,806,231
21,018,626
Total Fund Balances
21,806,231
21,018,626
Total Liabilities and Fund Balances
$ 21,812,040
$ 25,029,472
67
CITY OF SCHERTZ, TEXAS
COMPARATIVE SCHEDULES OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
ECONOMIC DEVELOPMENT CORPORATION
FOR THE YEAR ENDED SEPTEMBER 30, 2021
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED 2020)
REVENUES
Taxes
Investment earnings
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
2021
$ 5,615,928
56,144
5,672,072
306,025
528,442
834,467
4,837,605
( 4,050,000)
( 4,050,000)
787,605
21,018,626
$ 21,806,231
2020
::
288,740
5,108,028
4,886,456
480,202
5,366,658
( 258,630)
( 500,000)
( 500,000)
( 758,630)
21,777,256
$ 21,018,626
CITY OF SCHERTZ, TEXAS
COMPARATIVE BALANCE SHEETS
DEBT SERVICE FUND
SEPTEMBER 30, 2021
(WITH COMPARATIVE TOTALS FOR 2020)
69
2021
2020
ASSETS
Cash and cash equivalents
$ 1,087,376
$ 785,919
Receivables, net of allowances:
Taxes
133,778
120,816
Total Assets
1,221,154
906,735
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
133,778
120,816
Total Deferred Inflows of Resources
133,778
120,816
FUND BALANCES
Restricted for:
Debt service
1,087,376
785,919
Total Fund Balances
1,087,376
785,919
Total Deferred Inflows of Resources and Fund
Balances
$ 1,221,154
$ 906,735
69
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, 2021
(WITH COMPARATIVE ACTUAL TOTALS FOR 2020)
OTHER FINANCING SOURCES (USES)
Issuance of refunding debt
- - 7,555,000
7,555,000 -
Premium on refunding debt
Variance With
629,992 -
Payment to refunding escrow agent
- - ( 8,223,452)
( 8,223,452) -
2021
Final Budget
2020
Total Other Financing Sources (Uses)
Original
Final
Actual
Positive
Actual
FUND BALANCE - BEGINNING
Budget
Budget
Amounts
(Negative)
Amounts
REVENUES
Property taxes $
6,980,821
$ 6,980,821
$ 7,102,016
$ 121,195 $
6,714,516
Investment income
15,000
15,000
1,593
( 13,407)
19,900
Miscellaneous
100,000
100,000
125,000
25,000
75,000
Total Revenue
7,095,821
7,095,821
7,228,609
132,788
6,809,416
EXPENDITURES
Debt service:
Principal
5,065,000
5,065,000
4,955,000
110,000
4,885,000
Interest and fiscal charges
1,979,861
1,979,861
1,801,467
178,394
2,136,523
Bond issue costs
50,000
50,000
140,140
( 90,140)
4,200
Total Expenditures
7,094,861
7,094,861
6,896,607
198,254
7,025,723
Excess (Deficiency) of Revenues over Expenditures
960
960
332,002
( 65,466) (
216,307)
OTHER FINANCING SOURCES (USES)
Issuance of refunding debt
- - 7,555,000
7,555,000 -
Premium on refunding debt
- - 629,992
629,992 -
Payment to refunding escrow agent
- - ( 8,223,452)
( 8,223,452) -
Transfers in
- - 7,915
7,915 -
Total Other Financing Sources (Uses)
- - ( 30,545)
( 30,545) -
NET CHANGE IN FUND BALANCE
960 960 301,457
300,497 ( 216,307)
FUND BALANCE - BEGINNING
785,919 785,919 785,919
- 1,002,226
FUND BALANCE - ENDING
$ 786,879 $ 786,879 $ 1,087,376
$ 300,497 $ 785,919
70
CITY OF SCHERTZ, TEXAS
COMPARATIVE BALANCE SHEETS
CAPITAL PROJECTS FUND
SEPTEMBER 30, 2021
(WITH COMPARATIVE TOTALS FOR 2020)
ASSETS
Cash and cash equivalents
Accounts receivable, net of allowance
Total Assets
LIABILITIES
Accounts payable
Retainage payable
Total Liabilities
FUND BALANCES
Restricted for:
Capital improvement
Committed for:
Capital projects
Total Fund Balances
Total Liabilities and Fund Balance
71
2021
$ 13,229,954
258,142
13,488,096
162,695
154,437
317,132
I1 E
$ 10,677,080
10,677,080
428,387
111,135
539,522
5,185,166 6,065,616
7,985,798
13,170,964
$ 13,488,096
4,071,942
10,137,558
$ 10,677,080
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, 2021
(WITH COMPARTIVE TOTALS FOR THE YEAR ENDED 2020)
72
2021
2020
REVENUES
Intergovernmental
$ 724,993
$ -
Investment earnings
12,333
154,977
Miscellaneous
501,922
132,901
Total Revenues
1,239,248
287,878
EXPENDITURES
Capital outlay
4,582,289
7,837,991
Total Expenditures
4,582,289
7,837,991
Excess (Deficiency) of Revenues Over Expenditures
( 3,343,041)
( 7,550,113)
OTHER FINANCING SOURCES (USES)
Transfers in
6,384,362
4,500,000
Transfers out
( 7,915)
-
Total Other Financing Sources (Uses)
6,376,447
4,500,000
NET CHANGE IN FUND BALANCE
3,033,406
( 3,050,113)
FUND BALANCES - BEGINNING
10,137,558
13,187,671
FUND BALANCES - ENDING
$ 13,170,964
$ 10,137,558
72
CITY OF SCHERTZ, TEXAS
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2021
LIABILITIES
Accounts payable 3,613 - 13,000 -
Due to other funds - - - -
Total Liabilities 3,613 - 13,000 -
FUND BALANCES
Restricted for:
Tourism development 2,301,716 - - -
Parks and tree mitigation - 287,017 647,896 -
Police forfeiture - - - 32,560
Roadways - - - -
Historical Committee and library - - - -
Unassigned - - - -
Total Fund Balances 2,301,716 287,017 647,896 32,560
Total Liabilities and Fund Balances $ 2,305,329 $____287,_017 $____660,896 $_____32,_560
W
Special Revenue Funds
Hotel
Occupancy
Park
Tree
Treasury
Fund
Fund
Mitigation
Forfeitures
ASSETS
Cash and cash equivalents
$ 2,240,387 $
287,017
$ 660,896
$ 32,560
Accounts receivable, net of allowance
64,942
-
-
-
Total Assets
2,305,329
287,017
660,896
32,560
LIABILITIES
Accounts payable 3,613 - 13,000 -
Due to other funds - - - -
Total Liabilities 3,613 - 13,000 -
FUND BALANCES
Restricted for:
Tourism development 2,301,716 - - -
Parks and tree mitigation - 287,017 647,896 -
Police forfeiture - - - 32,560
Roadways - - - -
Historical Committee and library - - - -
Unassigned - - - -
Total Fund Balances 2,301,716 287,017 647,896 32,560
Total Liabilities and Fund Balances $ 2,305,329 $____287,_017 $____660,896 $_____32,_560
W
96,824 4,779 - -
- - - 64,564
- - ( 675,043) -
96,824 4,779 ( 675,043} 64,564
- 2,301,716
- - 934,913
- 134,163
- 1,801,040 1,801,040
14,298 - 78,862
- - ( 675,043)
14,298 1,801,040 4,575,651
$____128,310 $ 4,779 $______6,287 $ 64,697 $ 14,398 $ 1,801,040 $ 5,305,313
74
Capital
Special Revenue Funds
Projects Fund
Library
Historical
Capital
Total Nonmajor
Justice
State Grant
Advisory
Committee
Recovery
Governmental
Forfeitures
Forfeitures Fund
Board
Fund
Roadways
Funds
$ 128,310
$ 4,779 $ 6,287 $
64,697
$ 14,398
$ 1,801,040
$ 5,240,371
-
- -
-
-
-
64,942
128,310
4,779 6,287
64,697
14,398
1,801,040
5,305,313
31,486
- 2,886
133
100
-
51,218
-
- 678,444
-
-
-
678,444
31,486
- 681,330
133
100
-
729,662
96,824 4,779 - -
- - - 64,564
- - ( 675,043) -
96,824 4,779 ( 675,043} 64,564
- 2,301,716
- - 934,913
- 134,163
- 1,801,040 1,801,040
14,298 - 78,862
- - ( 675,043)
14,298 1,801,040 4,575,651
$____128,310 $ 4,779 $______6,287 $ 64,697 $ 14,398 $ 1,801,040 $ 5,305,313
74
CITY OF SCHERTZ, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2021
REVENUES
Occupancy tax
Permits and fees
Service fees
Fines and fees
Intergovernmental
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
Special Revenue Funds
Hotel
Occupancy Park Tree Treasury
Fund Fund Mitigation Forfeiture
$ 518,921 $ - $ - $ -
- - 219,513 -
2,095 293 650 -
521,016 293 220,163 -
263,300 - - -
- 4,500 35,495 -
72,464 - - -
- 1,012 - -
335,764 5,512 35,495 -
185,252 ( 5,219} 184,668 -
185,252
( 5,219)
184,668
-
2,116,464
292,236
463,228
32,560
$ 2,301,716
$ 287,017 $
647,896
$ 32,560
M
Capital
Special Revenue Funds
Projects Fund
Library
Historical
Capital
Total Nonmajor
Justice
State
Grant
Advisory
Committee
Recovery
Governmental
Forfeitures
Forfeitures
Fund
Board
Fund
Roadways
Funds
$ -
$ -
$ -
$ -
$ -
$ -
$ 518,921
-
-
-
-
-
-
219,513
-
-
-
9,104
590
902,712
912,406
5,844
-
-
-
-
-
5,844
-
-
1,931,599
-
-
-
1,931,599
176
-
-
111
-
1,828
5,153
-
-
-
13
2
-
15
6,020
-
1,931,599
9,228
592
904,540
3,593,451
-
-
-
-
3,108
-
266,408
94,899
7,995
535,124
-
-
-
638,018
-
-
-
-
-
-
39,995
-
-
-
19,708
-
-
19,708
-
-
-
-
-
-
72,464
24,750
-
-
-
-
41,127
66,889
119,649
7,995
535,124
19,708
3,108
41,127
1,103,482
( 113,629)
( 7,995)
1,396,475
( 10,480)
( 2,516}
863,413
2,489,969
-
-
-
-
3,109
-
3,109
-
-
-
-
3,109
-
3,109
( 113,629)
( 7,995)
1,396,475
( 10,480}
593
863,413
2,493,078
210,453
12,774
( 2,071,518)
75,044
13,705
937,627
2,082,573
$ 96,824
$ 4,779
$( 675,043)
$ 64,564
$ 14,298
$ 1,801,040
$ 4,575,651
M
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
HOTEL OCCUPANCY FUND
REVENUES
Occupancy tax
Investment earnings
Total Revenues
EXPENDITURES
Current:
General government
Administration
Capital outlay
Total Expenditures
FOR THE YEAR ENDED SEPTEMBER 30, 2021
(WITH COMPARATIVE ACTUAL TOTALS FOR 2020)
181,466 226,354 263,300 ( 36,946) 95,954
72,464 72,464 72,464 - 74,428
- - - - 223,189
253,930 298,818 335,764 ( 36,946) 393,571
NET CHANGE IN FUND BALANCE 286,820 241,932 185,252 ( 56,680) ( 98,401)
FUND BALANCE - BEGINNING
FUND BALANCE - ENDING
2,116,464 2,116,464 2,116,464 - 2,214,865
$ 2,403,284 $ 2,358,396 $___2,301,716 $( 56,680) $ 2,116,464
EN
Variance With
2021
Final Budget
2020
Original
Final
Actual
Positive
Actual
Budget
Budget
Amounts
(Negative)
Amounts
$ 520,000 $
520,000 $
518,921
$( 1,079) $
268,946
20,750
20,750
2,095
( 18,655)
26,224
540,750
540,750
521,016
( 19,734)
295,170
181,466 226,354 263,300 ( 36,946) 95,954
72,464 72,464 72,464 - 74,428
- - - - 223,189
253,930 298,818 335,764 ( 36,946) 393,571
NET CHANGE IN FUND BALANCE 286,820 241,932 185,252 ( 56,680) ( 98,401)
FUND BALANCE - BEGINNING
FUND BALANCE - ENDING
2,116,464 2,116,464 2,116,464 - 2,214,865
$ 2,403,284 $ 2,358,396 $___2,301,716 $( 56,680) $ 2,116,464
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, 2021
(WITH COMPARATIVE ACTUAL TOTALS FOR 2020)
25,000 25,000 4,500 20,500 5,760
100,000 100,000 1,012 98,988 -
125,000 125,000 5,512 119,488 5,760
( 51,500) ( 51,500) ( 5,219) ( 192,695) 1,566
292,236 292,236 292,236 - 290,670
$ 240,736 $_____240,736 $ 287,017 $ 46,281 $ 292,236
78
Variance With
2021 Final Budget
2020
Original
Final
Actual Positive
Actual
Budget
Budget
Amounts (Negative)
Amounts
$ 70,000 $
70,000
$ - $( 70,000) $
4,000
3,500
3,500
293 ( 3,207)
3,325
-
-
- -
1
73,500
73,500
293 ( 73,207)
7,326
25,000 25,000 4,500 20,500 5,760
100,000 100,000 1,012 98,988 -
125,000 125,000 5,512 119,488 5,760
( 51,500) ( 51,500) ( 5,219) ( 192,695) 1,566
292,236 292,236 292,236 - 290,670
$ 240,736 $_____240,736 $ 287,017 $ 46,281 $ 292,236
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, 2021
(WITH COMPARATIVE ACTUAL TOTALS FOR 2020)
70,000 70,000 35,495 34,505 28,674
70,000 70,000 35,495 34,505 28,674
4,500 4,500 184,668 180,168 29,822
463,228 463,228 463,228 - 433,406
$___467 728 $ 467,728 $ 647,896 $ 180,168 $ 463,228
79
Variance With
2021
Final Budget
2020
Original
Final
Actual
Positive
Actual
Budget
Budget
Amounts
(Negative)
Amounts
$ 70,000 $
70,000
$ 219,513
$ 149,513 $
52,427
4,500
4,500
650
( 3,850)
5,569
-
-
-
-
500
74,500
74,500
220,163
145,663
58,496
70,000 70,000 35,495 34,505 28,674
70,000 70,000 35,495 34,505 28,674
4,500 4,500 184,668 180,168 29,822
463,228 463,228 463,228 - 433,406
$___467 728 $ 467,728 $ 647,896 $ 180,168 $ 463,228
79
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
TREASURY FORFEITURES FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2021
(WITH COMPARATIVE TOTALS FOR 2020)
REVENUES
Fines and fees
Total Revenues
EXPENDITURES
Capital outlay
Total Expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING
FUND BALANCE - ENDING
80
2021 2020
$ - $ 4,400
4,400
206
206
- 4,194
32,560 28,160
$ 32,560 $ 32,354
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
JUSTICE FORFEITURES FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2021
(WITH COMPARATIVE TOTALS FOR 2020)
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
81
2021 2020
$ 5,844 $ 35,444
176 2,747
6,020 38,191
94,899 42,063
24,750 40,465
119,649 82,528
( 113,629) ( 44,337)
210,453 254,790
$ 96,824 $ 210,453
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
STATE FORFEITURES FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2021
(WITH COMPARATIVE TOTALS FOR 2020)
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
2021 2020
$ - $ 7,665
7,665
7,995 -
7,995 -
( 7,995) 7,665
12,774 5,109
$ 4,779 $ 12,774
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPEDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
LIBRARY ADVISORY BOARD
REVENUES
Service fees
Investment earnings
Miscellaneous
Total Revenues
EXPENDITURES
Current:
Cultural
Total Expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING
FUND BALANCE - ENDING
FOR THE YEAR ENDED SEPTEMBER 30, 2021
(WITH COMPARATIVE ACTUAL TOTALS FOR 2020)
21,200 21,200 19,708 1,492 10,456
21,200 21,200 19,708 1,492 10,456
( 10,480) ( 10,480) ( 398)
75,044 75,044 75,044 - 75,442
$ 75,044 $ 75,044 $ 64,564 $( 10,480) $ 75,044
83
Variance With
2021
Final Budget
2020
Original
Final
Actual
Positive
Actual
Budget
Budget
Amounts
(Negative)
Amounts
$ 20,000 $
20,000
$ 9,104
$( 10,896) $
9,204
1,000
1,000
111
( 889)
850
200
200
13
( 187)
4
21,200
21,200
9,228
( 11,972)
10,058
21,200 21,200 19,708 1,492 10,456
21,200 21,200 19,708 1,492 10,456
( 10,480) ( 10,480) ( 398)
75,044 75,044 75,044 - 75,442
$ 75,044 $ 75,044 $ 64,564 $( 10,480) $ 75,044
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, 2021
(WITH COMPARATIVE ACTUAL TOTALS FOR 2020)
REVENUES
Sale of merchandise
Miscellaneous
Total Revenues
EXPENDITURES
Current:
General government
Total Expenditures
Excess of Revenues Over Expenditures
OTHER FINANCING SOURCES (USES)
Variance With
2021 Final Budget
Original Final Actual Positive
Budget Budget Amounts (Negative)
$ 1,000 $ 1,000 $ 590 $( 410) $
2 2
1,000 1,000 592 ( 408)
2020
Actual
Amounts
43
43
11,750
11,750
3,108
8,642
169
11,750
11,750
3,108
8,642
169
( 7,641)
169
( 10,750)
( 10,750)
( 2,516)
8,234
( 126)
Transfers in
10,750
10,750
3,109
( 7,641)
169
Total Other Financing Sources (Uses)
10,750
10,750
3,109
( 7,641)
169
NET CHANGE IN FUND BALANCE
-
-
593
593
43
FUND BALANCE - BEGINNING
13,705
13,705
13,705
-
13,662
FUND BALANCE - ENDING $
13,705 $
13,705 $
14,298
$ 593 $
13,705
84
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
CAPITAL RECOVERY ROADWAYS
FOR THE YEAR ENDED SEPTEMBER 30, 2021
(WITH COMPARATIVE TOTALS FOR 2020)
REVENUES
Service fees
Investment earnings
Total Revenues
EXPENDITURES
Capital outlay
Total Expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING
FUND BALANCE - ENDING
85
2021 2020
$ 902,712 $ 850,201
1,828 1,973
904,540 852,174
41,127 -
41,127 -
863,413 852,174
937,627 85,453
$ 1,801,040 $ 937,627
STATISTICAL SECTION
THIS PAGE LEFT BLANK INTENTIONALLY
STATISTICAL SECTION
(Unaudited)
This part of the City of Schertz, Texas Annual Comprehensive 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
Page
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
$
53,071,836
$
2012
2013
2014
2015
Governmental activities
-
-
Net investment in capital assets $
56,616,809 $
57,543,618 $
62,792,671 $
68,125,738
Restricted
1,917,098
7,788,354
10,401,728
13,343,280
Unrestricted
8,907,326
6,645,418
8,613,239
1,640,519
Total Governmental Activities Net
Position $
67,441,233 $
71,977,390 $
81,807,638 $
83,109,537
Business -type activities
Net investment in capital assets
$
50,161,157
$
53,071,836
$
53,674,437
$
59,625,205
Restricted
-
-
-
-
Unrestricted
11,577,645
11,902,282
16,450,988
14,243,922
Total Business -Type Activities Net
Position
$
61,738,802
$
64,974,118
$
70,125,425
$
73,869,127
Primary government
Net investment in capital assets
$
106,777,966
$
110,615,454
$
116,467,108
$
127,750,943
Restricted
1,917,098
7,788,354
10,401,728
13,343,280
Unrestricted
20,484,971
18,547,700
25,064,227
15,884,441
Total Primary Government Net
Position
$
129,180,035
$
136,951,508
$
151,933,063
$
156,978,664
86
TABLE 1
Fiscal Year
2016 2017 2018 2019 2020 2021
$ 74,237,004 $ 84,537,238 $ 89,266,885 $ 89,869,766 $ 88,959,102 $ 98,444,714
17,095,325 20,437,116 23,391,047 28,088,355 28,664,438 28,342,438
2,231,341 1,673,567 2,351,236 2,920,717 4,157,801 10,744,127
$ 93,563,670 $ 106,647,921 $ 115,009,168 $ 120,878,838 $ 121,781,341 $ 137,531,279
$ 64,210,231 $ 70,361,035 $ 64,871,629 $ 68,271,075 $ 75,969,319 $ 83,941,882
- 10,565,463 12,626,526 13,232,638 15,071,599 8,368,736
15,737,470 20,781,291 20,870,671 33,254,008 30,570,717 39,406,798
$ 79,947,701 $ 101,707,789 $ 98,368,826 $ 114,757,721 $ 121,611,635 $ 131,717,416
$ 138,447,235 $ 154,898,273 $ 154,138,514 $ 158,140,841 $ 164,928,421 $ 182,386,596
17,095,325 20,437,116 23,391,047 41,320,993 43,736,037 36,711,174
17,968,811 22,454,858 35,848,433 36,174,725 34,728,518 50,150,925
$ 173,511,371 $ 197,790,247 $ 213,377,994 $ 235,636,559 $ 243,392,976 $ 269,248,695
87
CITY OF SCHERTZ, TEXAS
CHANGE IN NET POSITION
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(UNAUDITED)
Fiscal Year
2012 2013 2014 2015
Expenses
2,230,800
1,974,637
1,840,547
2,216,385
Governmental activities:
16,349,967
16,954,871
17,762,116
18,440,959
General government
$ 7,802,092 $
7,066,087
$ 6,958,530
$ 6,443,227
Public safety
9,103,676
9,567,595
10,025,703
10,836,712
Public environment
3,586,087
3,622,834
3,740,538
3,876,644
Parks and recreation
1,584,605
1,807,559
1,807,136
2,164,604
Cultural
916,967
907,676
870,159
892,194
Health
357,658
344,647
407,114
470,468
Administration
1,117,044
1,180,656
1,942,312
1,845,877
Interest and other fees
2,302,912
3,340,951
2,352,856
2,226,635
Total Governmental Activities Expenses
26,771,041
27,838,005
28,104,348
28,756,361
Business -type activities:
2,230,800
1,974,637
1,840,547
2,216,385
Water and sewer
16,349,967
16,954,871
17,762,116
18,440,959
EMS
3,758,425
3,959,445
4,268,125
4,719,526
Total Business -Type Activities Expenses
20,108,392
20,914,316
22,030,241
23,160,485
764,997
234,084
220,264
336,252
Total Primary Government Expenses
46,879,433
48,752,321
50,134,589
51,916,846
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
2,286,488
2,230,800
1,974,637
1,840,547
2,216,385
2,516,547
2,536,476
2,603,476
541,512
721,222
917,639
794,003
279,267
305,932
309,897
325,178
36,746
38,149
32,429
26,744
764,997
234,084
220,264
336,252
1,178,573
1,531,740
5,756,456
5,509,530
7,303,968
7,578,474
11,747,798
11,435,730
17,411,568
17,696,327
19,147,872
20,700,369
3,561,114
4,459,600
4,533,753
4,415,126
828,853
1,301,235
2,809,110
4,158,552
21,801,535
23,457,162
26,490,735
29,274,047
29,105,503
31,035,636
38,238,533
40,709,777
Net(expense)revenue:
Governmental activities ( 19,467,073) ( 20,259,531) ( 16,356,550) ( 17,320,631)
Business -type activities 1,693,143 2,542,846 4,460,494 6,113,562
Total Primary Government Net Expense ( 17,773,930) ( 17,716,685) ( 11,896,056) ( 11,207,069)
88
TABLE 2
Fiscal Year
2016 2017 2018 2019 2020 2021
$ 6,557,778 $
6,253,926 $
7,421,918 $
6,534,013 $
10,310,363 $
7,298,193
12,141,968
13,061,120
13,899,278
15,448,886
16,575,191
19,008,871
4,147,653
4,460,540
4,930,723
5,495,192
8,825,099
5,364,408
2,034,964
2,859,974
2,707,292
3,022,278
3,012,134
3,395,458
954,871
1,004,747
1,042,085
1,119,650
1,089,564
1,087,975
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
4,360,229
2,240,783
2,355,714
2,125,687
2,196,180
2,028,065
1,797,520
30,602,497
33,824,617
35,919,746
38,186,344
45,856,111
42,312,654
20,269,111
21,346,078
23,579,854
25,608,390
24,349,219
25,280,964
5,004,110
6,006,178
6,110,407
6,529,631
6,051,296
7,784,670
25,273,221
27,352,256
29,690,261
32,138,021
30,400,515
33,065,634
55.875.718
61.176.873
65.610.007
70.324.365
76.256.626
75.378.288
1,507,252
874,737
1,013,698
947,538
836,246
651,211
2,415,537
4,131,548
4,104,911
3,177,329
3,276,129
3,079,945
-
-
-
138,920
850,201
902,712
788,727
544,460
640,231
484,495
331,174
528,886
326,079
330,412
313,668
311,575
299,944
285,792
30,308
29,742
27,930
21,101
26,304
-
342,485
552,878
776,942
692,042
2,113,673
1,925,939
6,227,664
10,043,483
4,744,489
1,319,793
531,096
7,959,576
11,638,052
16,507,260
11,621,869
7,092,793
8,264,767
15,334,061
22,003,794
25,390,713
27,099,237
27,333,475
29,709,279
27,724,929
5,921,223
6,366,894
6,092,559
6,596,618
6,114,891
7,709,027
2,831,126
6,111,474
3,132,348
1,975,524
292,408
6,935,191
30,756,143
37,869,081
36,324,144
35,905,617
36,116,578
42,369,147
42,394,195
54,376,341
47,946,013
42,998,410
44,381,345
57,703,208
( 18,964,445) (
17,317,357) (
24,297,877) (
31,093,551)
( 37,591,344) (
26,978,593)
5,482,922
10,516,825
6,633,883
3,767,596
5,716,063
9,303,513
( 13,481,523) (
6,800,532) (
17,663,994) (
27,325,955)
( 31,875,281) (
17,675,080)
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
2012
2013
2014
2015
General Revenues and
Other Changes in Net Position
Governmental activities:
Taxes
Ad valorem
$ 11,298,204
$ 12,359,146
$ 12,794,172
$ 14,139,037
Sales
7,968,212
9,637,097
10,553,382
10,315,125
Franchise fees
1,647,712
1,681,079
2,073,162
2,263,783
Hotel /motel
470,290
503,267
552,570
563,734
Mixed drink
28,586
30,421
39,917
43,656
Investment income
60,265
54,270
43,279
56,820
Miscellaneous
621,560
505,268
180,316
197,881
Transfers
( 62,294)
25,140
( 50,000)
( 42,235)
Total Governmental Activities
22,032,535
24,795,688
26,186,798
27,537,801
Business -type activities:
Interest and investment earnings
36,409
53,089
31,810
47,728
Miscellaneous
666,645
664,521
609,003
344,731
Transfers
62,294
( 25,140)
50,000
42,235
Total Business -Type Activities
765,348
692,470
690,813
434,694
Total Primary Government
22,797,883
25,488,158
26,877,611
27,972,495
Change in Net Position
Governmental activities
2,565,462
4,536,157
9,830,248
10,217,170
Business -type activities
2,458,491
3,235,316
5,151,307
6,548,256
Total Primary Government
$ 5,023,953
$ 7,771,473
$ 14,981,555
$ 16,765,426
Source: City financial statements
90
TABLE 2
Fiscal Year
2016 2017 2018 2019 2020 2021
$ 15,131,997
10,921,489
2,250,815
544,871
43,073
187,847
309,275
29,211
29,418,578
$ 16,166,006
10, 844, 503
2,208,373
499,466
42,699
448,408
182,754
9,399
30,401,608
$ 17,018,950
12,668,555
2,393,182
520,424
43,395
909,985
283,496
19,186
33,857,173
102,642 211,466 532,367
522,221 475,733 453,374
( 29,211) ( 9,399) ( 19,186
595.652 677,800 966,555
30,014,230 31,079,408 34,823,728
10,454,133 13, 084, 251 9,559,296
6,078,574 11,194,625 7,600,438
$ 16,532,707 $ 24,278,876 $ 17,159,734
91
$ 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
767,779
21,463,804
16,838,731
2,305,108
518,921
68,730
104,613
1,408,270
38,493,827 42,708,177
431,555 68,354
706,296 754,268
1,137,851 822,622
38,167,750 39,631,678 43,530,799
5,869,670 902,503 15,729,584
4,972,125 6,853,914 10,126,135
$ 10,841,795 $ 7,756,417 $ 25,855,719
CITY OF SCHERTZ, TEXAS
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(UNAUDITED)
All other governmental funds
Restricted $ 22,462,562 $ 22,742,237 $ 19,261,995 $ 21,191,968
Committed - 165,000 31,718 -
Assigned 347,191 244,937 31,177 6,657
Unassigned - - - -
Total all other governmental funds $ 22,809,753 $ 23,152,174 $ 19,324,890 $ 21,198,625
Source: Balance Sheets - Governmental Funds in City's ACFRs.
92
2012
2013
2014
2015
General fund
Non - spendable
$ 186,003 $
925,291 $
110,253 $
117,084
Restricted
1,275,501
1,599,487
1,701,408
1,748,374
Committed
-
-
-
-
Assigned
322,656
456,034
694,916
785,005
Unassigned
2,560,667
4,206,734
5,587,262
7,280,240
Total general fund
$ 4,344,827 $
7,187,546 $
8,093,839 $
9,930,703
All other governmental funds
Restricted $ 22,462,562 $ 22,742,237 $ 19,261,995 $ 21,191,968
Committed - 165,000 31,718 -
Assigned 347,191 244,937 31,177 6,657
Unassigned - - - -
Total all other governmental funds $ 22,809,753 $ 23,152,174 $ 19,324,890 $ 21,198,625
Source: Balance Sheets - Governmental Funds in City's ACFRs.
92
TABLE 3
2016 2017 2018 2019 2020 2021
$ 220,503 $
98,263 $
94,876 $
131,925 $
114,787 $
162,463
1,929,636
1,994,905
2,027,125
2,196,037
1,996,357
2,151,411
-
-
-
-
687,780
907,676
752,503
854,198
3,080,557
5,580,626
1,972,479
1,501,398
8,509,467
9,976,169
12,548,013
9,228,612
12,197,575
11,755,619
$ 11,412,109 $
12,923,535 $
17,750,571 $
17,137,200 $
16,968,978 $
16,478,567
$ 27,252,908 $ 35,721,031 $ 37,772,240 $ 39,009,399 $ 32,024,252 $ 33,329,710
342,519 454,376 454,376 687,779 4,071,942 7,985,798
6,743 - - - - -
- - - - ( 2,071,518) ( 675,043)
$ 27,602,170 $ 36,175,407 $ 38,226,616 $ 39,697,178 $ 34,024,676 $ 40,640,465
93
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
2012 2013 2014 2015
$ 21,401,991 $ 24,181,863 $ 26,021,730 $ 27,348,297
1,363,461
1,609,954
1,805,047
1,731,302
1,547,007
1,739,387
1,763,964
1,797,151
2,027,613
1,927,744
1,750,311
1,534,588
1,000,413
492,332
221,769
393,607
969,921
767,110
671,731
689,805
28,310,406
30,718,390
32,234,552
33,494,750
7,094,834
6,311,276
5,981,439
5,582,441
8,690,849
9,113,840
9,409,894
10,158,401
976,327
951,528
1,012,607
952,663
1,398,692
1,412,329
1,338,232
1,658,197
845,124
840,595
815,691
821,146
346,318
341,961
394,918
404,008
1,249,557
1,289,078
2,270,041
2,056,646
1,299,843
3,277,397
8,000,467
2,314,668
2,704,898
3,217,325
3,695,597
3,918,008
2,313,510
2,381,171
2,108,610
2,112,746
254,971
31,750
165,650
7,992
27,174,923
29,168,250
35,193,146
29,986,916
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)
21.3%
3,507,834
245,000
989,120
( 1,031,355)
202,765
$ 3,710,599
Source: Statement of Revenues, Expenditures, and Changes in Fund Balance for Governmental Funds.
94
21.3%
TABLE 4
2016 2017 2018 2019 2020 2021
$ 28,865,727 $ 29,720,578 $ 32,632,702 $ 34,590,008 $ 36,802,913 $ 41,150,087
1,493,336
2,540,045
2,557,056
1,635,461
1,807,264
1,812,895
1,789,321
2,132,299
2,159,193
2,070,293
2,583,598
2,540,995
1,441,474
1,217,621
1,049,989
953,614
880,657
643,482
401,494
397,073
609,131
1,057,681
951,604
4,582,874
1,741,436
1,897,153
1,761,285
2,454,515
1,572,473
1,512,883
35,732,788
37,904,769
40,769,356
42,761,572
44,598,509
52,243,216
5,657,998
5,394,918
6,327,133
5,881,647
10,364,369
6,580,915
11,048,767
11,870,636
12,728,222
13,985,443
15,366,593
18,107,418
1,007,326
1,128,979
1,136,052
1,112,041
1,270,894
1,382,185
1,528,356
1,885,915
1,697,872
2,393,487
2,102,083
2,534,679
869,162
921,870
955,153
1,018,109
1,044,891
1,059,984
480,175
672,934
628,054
498,871
589,616
-
2,015,573
2,912,855
3,015,239
3,795,233
3,353,634
4,459,223
10,192,398
5,492,196
7,708,625
9,083,572
9,276,886
5,215,256
4,040,975
4,473,174
4,744,116
4,565,000
4,929,544
4,955,000
1,896,911
2,113,679
2,099,190
2,069,215
2,136,523
1,801,467
449,358
214,280
129,417
189,082
4,200
140,140
-
-
-
5,489,912
-
-
39,186,999
37,081,436
41,169,073
50,081,612
50,439,233
46,236,267
( 3,454,211)
823,333
( 399,717)
( 7,320,040)
( 5,840,724)
6,006,949
10,750,000
8,870,000
4,887,829
4,620,000
-
136,535
4,185,000
-
6,035,000
5,225,000
-
7,555,000
590,432
381,931
269,212
6401115
-
629,992
( 4,215,482)
-
( 6,159,623)
-
-
( 8,223,452)
863,583
438,803
777,487
120,503
4,500,169
6,395,386
( 834,371)
( 429,404)
( 758,302)
( 202,028)
( 4,500,169)
( 6,375,032)
11,339,162
9,261,330
5,051,603
10,403,590
-
118,429
$ 7,884,951
$ 10,084,663
$ 4,651,886
$ 3,083,550
$( 5,840,724)
$ 6,125,378
20.5%
20.4%
22.2%
17.3%
16.2%
19.9%
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
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
2021
21,418,597
16,838,731
2,305, 108
68,730
M
Hotel
TABLE 5
Bingo
Occupancy
Total
$ -
$ 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
24
518,921
41,150,111
97
Fiscal
Year
Ended
September 30,
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
CITY OF SCHERTZ, TEXAS
TOTAL WATER AND SEWER CONSUMPTION AND RATES
LAST TEN FISCAL YEARS
Total Water &
Sewer Consumption
(In Gallons)
1,629,336,300
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
98
Water &
Sewer
Base Rate
38.15
38.15
37.15
35.61
34.35
30.11
26.54
24.38
22.69
22.69
TABLE 6
Water & Sewer
Initial Rate Per
1.000 Gallons
6.97
6.97
6.84
6.53
6.21
5.73
5.43
5.17
4.84
4.84
CITY OF SCHERTZ, TEXAS TABLE 7
PRINCIPAL WATER AND SEWER CONSUMERS
LAST TEN FISCAL YEARS
TOTAL 76,208,600 4.68% 92,272,800 5.75%
Total City Water Consumption 1,629,336,300 1,604,952,300
99
2021
2012
Percentage
Percentage
Total
of
Total
of
Water
Total City
Water
Total City
Consumption
Water
Consumption
Water
TAXPAYERS
(In Gallons)
Rank
Consumption
(In Gallons)
Rank
Consumption
Caterpillar
20,975,100
1
1.29%
City of Cibolo
17,972,200
2
1.10%
Republic Beverage Company
5,824,300
3
0.36%
Sysco
8,056,600
4
0.49%
18,163,300
2
1.13%
Colgate Inc.
4,209,200
5
0.26%
6,766,200
4
0.42%
Silver Tree Nursing Rehab.
4,203,100
6
0.26%
6,304,900
6
0.39%
IPT San Antonio Logistics
4,173,400
7
0.26%
4,444,100
9
0.28%
YMCA
4,067,200
8
0.25%
Atrium Inn
3,396,200
9
0.21%
Manco Structures
3,331,300
10
0.20%
Lions Fut Ball Club
25,141,000
1
1.57%
Beck Readymix Concrete
8,567,600
3
0.53%
IPT San Antonio Logistics
6,447,400
5
0.40%
Manco Structures
6,275,400
7
0.39%
Big Time Management
5,966,500
8
0.37%
City of Schertz (Soccor Field)
4,196,400
10
0.26%
TOTAL 76,208,600 4.68% 92,272,800 5.75%
Total City Water Consumption 1,629,336,300 1,604,952,300
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
2021
0.3470
0.1651
0.5121
1.4106
1.2757
2020
0.3496
0.1650
0.5146
1.4200
1.3200
2019
0.3497
0.1649
0.5146
1.4900
1.3200
2018
03248
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
03164
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
Overlapping
Counties
Bexar
Community
Fiscal
Bexar
Hospital
River
College
Corral
Guadalupe
Year
County
District
Authority
District
County
County
2021
0.2624
0.2762
0.0186
0.1492
0.3224
0.3854
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
0.3052
0.2762
0.0174
0.1416
0.3504
0.4036
2012
0.3269
0.2762
0.0167
0.1416
0.3340
0.4036
100
CITY OF SCHERTZ, TEXAS TABLE 9
PRINCIPAL PROPERTY OF TAX PAYERS
CURRENT YEAR AND NINE YEARS AGO
2021 2012
Taxpayer
Taxable
Assessed
Value
Rank
Percentage
of
Total City
Taxable
Assessed
Value
Taxable
Assessed
Value
Rank
Percentage
of
Total City
Taxable
Assessed
Value
SYSCO San Antonio, Inc. $
141,147,340
1
3.28%
$ 44,955,071
2
2.28%
Caterpillar Inc.
107,425,724
2
2.49%
39,710,625
3
2.02%
Amazon Com Services Inc
83,888,434
3
1.95%
Texas Circle 161 LLC
58,777,703
4
1.36%
Rebublic Beverage Company
57,556,210
5
1.34%
47,821,320
1
2.43%
Colfin 2018 -3 Industrial Owner LLC
51,009,011
6
1.18%
1290 Entertainment LLC
19,923,909
7
0.46%
H.E.Butt Grocery Co.
18,099,778
8
0.42%
EM Limited Partnership
17,800,000
9
0.41%
Piret(Doer Lane) Holdings LLC
17,536,180
10
0.41%
Capital Group Companies Inc.
23,928,015
4
1.22%
San Antonio MTA Lp
23,026,185
5
1.17%
Capital Group Companies Inc.
17,587,923
6
0.89%
SC Schertz LLC
16,900,000
7
0.86%
Eye Care Centers of America Inc.
14,471,578
8
0.74%
Salof Properties II LLC
14,300,000
9
0.73%
Wal -Mart Real Estate Business Trust
13,137,327
10
0.67%
Totals $ 573,164,289 13.31% $ 255,838,044 12.99%
Total Taxable
Assessed Value $ 4,306,840,068 $ 1,968,808,829
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
2021
$ 22,011,090
$ 21,787,625
98.98%
$ -
$ 21,787,625
98.98%
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%
71,342
17,971,167
99.78%
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%
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
2021
2020
$ 3,060,963,760 $
1,505,592,717
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
*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)
$ 276,109,231
$ 4,070,815,340
0.5121
(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
104
General
Fiscal Obligation
Year Bonds
2021
40,390,000
2020
44,620,000
2019
48,320,000
2018
52,752,896
2017
56,613,614
2016
56,352,272
2015
53,410,128
2014
56,487,433
2013
58,693,750
2012
60,878,759
CITY OF SCHERTZ, TEXAS
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Governmental Activities
Certificates
of
Obliaation
14,200,000
15,415,000
16,235,000
13,636,966
9,011,415
4,057,189
277,801
543,934
801,767
1,581,300
Tax Capital
Notes Lease
155,000
345,000
530,000
715,000
1,230,000
1,740,000
1,210,000
1,585,000
2,155,000
190,000
105
136,535
25,695
25,699
34,264
25,147
58,321
91,495
123,370
22,398
60,190
Business -TVDe Activities
Certificates
Revenue
of
Bonds
Obligation
-
$ 10,655,000
-
11,200,000
-
12,330,000
-
13,211,178
-
8,174,779
-
8,331,966
-
8,946,153
-
9,561,204
2,215,000
5,048,233
2,342,656
5,383,700
Business -Type Activities
TABLE 12
General
Obligation
Bonds
Capital
Lease
Tax
Notes
Total
Primary
Government
Percent
of Gross
Income
Per
Capita
$ 2,895,000
$ 475,121
$ -
$ 68,906,656
4.25%
1,619
3,685,000
134,662
150,000
75,575,357
4.50%
1,769
4,445,000
199,421
460,000
82,545,120
5.60%
1,932
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
106
CITY OF SCHERTZ, TEXAS
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
TABLE 13
General Bonded Debt Outstanding
$ 43,285,000
Less:
Percentage of
General Certificates Amounts
Actual Taxable
Fiscal Obligation of Available for
Value of Per
Year Bonds Obligation Debt Service Total
Property Capita
2021
$ 43,285,000
$ 24,855,000
$ (934,899) $
67,205,101
1.65%
1,558
2020
46,223,908
15,801,473
( 1,051,874)
60,973,507
1.47%
1,481
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
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
0.32% $
1,400,928
Bexar County
1,541,429,243
0.32%
4,932,574
Bexar County Hospital District
916,855,010
0.32%
2,933,936
Comal County
130,723,964
4.18%
5,464,262
Comal ISD
725,695,179
4.42%
32,075,727
Guadalupe County
17,905,000
20.10%
3,598,905
Schertz- Cibolo- Universal ISD
384,573,190
48.29%
185,710,393
Subtotal, Overlapping Debt
City Governmental Activities Direct Debt
TOTAL NET OVERLAPPING DEBT
236,116,724
54,881,535
$ 290,998,259
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, 2020 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
$ 4,070,815,340
$ 407,081,534
$ 54,881,535
( 934,899) 53,946,636
$ 353,134,898
15.28%
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
2021 $
28,030,614
$ 22,231,246
$ 5,799,368 $
1,856,953
$ 515,413
2.44
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
41783,772
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
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
CITY OF SCHERTZ, TEXAS TABLE 17
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
Fiscal
Year
Population
Personal
Income
Per Capita
Personal
Income
Median
Age
Education
Level in
Years of
Schooling
School
Enrollment
Unemployment
Rate
2021
43,125 $
1,641,725,625
$ 38,069
37.6
16.2
15,887
3.9%
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%
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
2021
2012
Percentage
Percentage
of Total City
of Total City
Employer
Employees
Employment
Employees
Employment
Schertz- Cibolo- Universal City ISD
2,000
10.40%
944
5.86%
Amazon
1,302
6.80%
Sysco Central Texas, Inc
827
4.30%
582
3.62%
Republic National Distributing Company
639
3.30%
250
1.55%
Fed Ex Ground - Doerr Lane, Schertz
580
3.00%
Brandt Companies
527
2.70%
300
1.86%
City of Schertz
400
2.10%
344
2.14%
FedEx Freight
340
1.80%
141
0.88%
Visionworks
300
1.60%
542
3.37%
Hollingsworth Logistics Group
286
1.50%
Wal -mart Stores
385
2.39%
H.E.B Grocery Co.
346
2.15%
Valero Diamond Distribution
170
1.06%
TOTAL
7,201
37.50%
4,004
24.88%
Source: City Economic Development Corporation
CITY OF SCHERTZ, TEXAS
FULL-TIME EQUIVALENT CITY GOVERNMENTAL EMPLOYEES BYFUNCTION
LAST TEN FISCAL YEARS
Full-Time Equivalent | of September ]O
Function 2012 2013 2014 2015
General Government
City Manager
Court Support
Municipal Court
Customer Relations
Planning and Zoning
General Services
City Secretary
Public Affairs
Records Management
Schertz Magazine
Engineer
GTS
Information Technology
Human Resources
Finance
Purchasing
Fleet Service
Building Maintenance
Facility Services
Public Safety
Police
Fine
Inspections
Marshal Services
Health
Animal Control
Environmental Health
Parks and Culture
Parks
Pools
Event Facilities
Library
Public Environment
Streets
Public Works
Public Works
Business Office
Water and Sewer
Drainage
EMS
EcononnicDeve|oonnent
TOTAL
7
7
6
6
-
6
-
6
-
6
-
6
5
5
5
5
3
3
3
3
15
13
13
13
2
I
2
2
4
4
4
4
1
1
1
1
2
2
2
2
4
3
3
3
2
2
2
2
4
6
6
6
4
4
4
4
6
6
6
8
5
4
3
3
4
4
4
6
-
-
2
-
2
-
3
-
70
75
75
75
32
32
33
33
7
7
8
9
8
8
8
8
6
-
6
-
7
-
7
-
y
y
y
y
-
1
-
1
-
1
-
1
14
14
14
14
14
14
14
14
4
6
6
6
10
10
10
10
17
16
16
16
7
8
8
8
35
35
36
37
4
4
4
4
311
318
320
327
113
TABLE 19
114
Full -Time Equivalent
Employees
as of September 30,
2016
2017
2018
2019 2020
2021
5
5
5
5
5
5
6
6
6
4
4
4
5
5
5
3
3
3
4
4
4
3
3
4
2
2
2
2
2
2
4
4
5
5
5
4
1
1
-
-
-
-
2
2
-
-
-
-
7
7
7
7
8
8
2
2
2
2
2
2
6
7
8
8
8
8
5
5
5
5
5
5
8
8
8
7
7
7
3
3
3
3
3
3
6
6
6
7
8
8
16
16
17
10
10
11
78
81
86
86
87
90
36
39
45
45
46
46
8
8
11
12
12
12
8
5
-
-
-
-
8
8
7
7
8
9
3
3
4
4
4
5
9
10
12
11
11
11
1
1
1
5
5
6
14
14
15
14
14
14
14
14
14
14
17
17
4
4
4
4
4
4
10
10
10
9
9
9
16
16
19
19
19
21
6
6
8
8
8
8
39
41
45
45
45
55
4
4
4
4
4
4
339
346
366
357
365
384
114
CITY OF SCHERTZ, TEXAS
OPERATING INDICATORS BY FUNCTION /PROGRAM
LAST TEN FISCAL YEARS
115
Fiscal Year
Function
2012
2013
2014
2015
General Government
Building Permits Issued
2,643
3,054
2,869
3,087
Schertz Tales
Number of Magazines Printed
168,000
168,000
180,000
180,000
Police
CFS
19,434
19,894
19,067
36,138
Arrests
666
800
776
595
Traffic Violations
20,881
19,335
15,077
12,306
Accidents
1,665
1,960
1,823
2,040
Fire
Number of Rescue /Other Responses
1,799
2,046
1,759
2,167
Number of Fire Responses
74
108
110
99
Number of Inspections
429
332
252
698
Number of Training Classes Conducted
168
132
125
150
Number of Pre -Plan Inspections
714
729
735
980
EMS
Requests for Transport
7,545
8,391
8,840
9,286
Actual Transports
4,766
5,451
5,713
6,118
EMT Students
79
116
87
84
Marshal Service
Warrants Issued
2,888
3,344
2,354
3,798
Warrants Cleared
4,118
4,687
3,781
3,691
Food Establishment Permits
123
127
82
135
Food Establishment Inspection
180
281
218
136
Foster /Adoption Inspections
14
24
16
22
Parks
Facility Reservations
234
258
301
275
Community and Civic Centers
Civic Center
325
444
458
478
Community Center Rentals
816
735
437
455
North Community Center Rentals
307
288
244
209
115
TABLE 20
116
Fiscal Year
2016
2017
2018 2019
2020
2021
5,919
4,800
5,251
4,748
2,993
4,474
180,000
1801000
180,000
180,000
187,500
189,700
39,064
34,428
45,190
41,327
57,149
29,007
603
423
624
603
527
416
8,960
81001
11,359
12,541
8,326
6,980
2,119
2,057
2,244
2,304
1,752
2,076
2,327
21758
3,055
3,804
3,953
4,837
67
86
161
100
108
205
440
519
562
528
500
548
460
340
600
804
763
770
867
922
788
865
814
848
9,723
9,956
10,059
10,759
10,713
12,251
6,123
6,201
6,165
6,738
6,549
7,444
89
90
90
90
84
123
2,587
2,816
1,598
2,036
1,738
2,095
3,492
2,822
2,022
1,834
664
1,451
145
201
181
55
189
142
153
13
211
96
209
172
21
21
18
8
10
12
240
251
248
241
75
237
483
590
516
441
293
253
370
455
381
326
193
291
185
230
235
188
92
153
116
CITY OF SCHERTZ, TEXAS
OPERATING INDICATORS BY FUNCTION /PROGRAM
LAST TEN FISCAL YEARS
117
Fiscal Year
Function
2012
2013
2014
2015
Animal Services
Number of Animals Handled
1,463
1,326
1,218
1,304
Number of Adoptions
291
362
309
357
Number of Return to Owners
149
231
222
213
Number of Transfers
312
301
316
296
Library
Annual Circulation
410,312
404,691
395,998
394,766
Library Visits
256,349
254,633
253,237
259,413
Library Program Attendance
16,035
12,581
15,048
13,825
Registered Users
30,475
31,658
30,759
31,138
Water
New Connections
271
168
235
369
Water Main Breaks
52
38
45
45
Total Consumption
16,131,415
15,500,413
15,497,071
14,757,134
(Thousands of Gallons)
Daily Average Consumption
(Thousands of Gallons)
44,196
42,466
42,458
40,431
Peak Daily Consumption
(Thousands of Gallons)
9,290
9,483
10,089
8,385
Total Customers
12,557
12,757
13,324
13,570
Average Use Per Connection
5,517
5,905
5,467
5,135
Sewer
Total Customers
10,988
11,456
11,578
11,413
Facilities Maintenance
Number of Buildings Maintained
19
19
19
21
Square Footage
166,591
166,591
166,591
234,202
117
Fiscal Year
TABLE 20
2016
2017
2018
2019
2020
2021
1,313
11283
926
1,157
1,015
1,070
410
348
319
366
450
329
205
228
218
233
335
284
316
326
297
227
188
152
399,622
3851206
414,790
447,379
254,643
281,659
255,109
235,428
258,695
237,821
102,297
91,291
15,282
161814
16,945
18,412
6,524
2,541
30,702
311432
30,806
33,104
31,296
30,291
213
303
235
300
357
342
45
45
50
52
65
38
16,097,931
15,222,373
15,833,124
17,602,330
1,976,687
1,617,120
43,942
411705
43,378
48,225
54,155
59,377
10,985
111000
9,083
11,094
14,011
9,160
13,877
14,124
14,678
16,434
13,683
151861
5,352
5,244
5,294
4,587
5,600
101,955
12,282
121398
12,866
12,853
13,112
14,128
21
21
25
26
27
26
234,202
2341202
245,218
257,218
301,656
257,218
118
CITY OF SCHERTZ, TEXAS
CAPITAL ASSET STATISTICS BY FUNCTION /PROGRAM
LAST TEN FISCAL YEARS
Sewer
Sanitary Sewers (Miles)
85
Fiscal Year
90
96
Function
2012
2013
2014
2015
Police
Stations
1
1
1
1
Patrol Units
42
42
42
48
Fire
3
3
3
4
Stations
2
2
2
2
Fire Vehicles
13
13
15
16
EMS
Ambulances
6
7
7
9
Marshal Service
Vehicles
8
7
7
7
Streets
Streets, Paved (Miles)
134
137
141
149
Streets, Unpaved (Miles)
5
5
5
5
Parks and Recreation
Parks - Developed
17
13
13
14
Parks - Undeveloped
4
8
8
9
Playground
15
16
16
18
Swimming Pools
2
2
2
2
Baby Pools
2
2
2
2
Baseball /Softball Diamonds
9
12
12
15
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
81,468
86,221
100,478
113,085
Water
Number of Pump Stations
5
5
5
5
Water Mains (Miles)
192
197
199
210
Sewer
Sanitary Sewers (Miles)
85
87
90
96
Storm Sewers (Miles)
10
11
11
12
Facilities Maintenance
Vehicles
4
5
5
6
Fleet
Generators
3
3
3
4
Vehicles & Equipment
119
TABLE 21
Fiscal Year
2016
2017
2018
2019
2020
2021
1
1
1
1
1
1
50
64
69
68
72
66
2
2
3
3
3
3
16
16
18
19
20
20
9
8
8
9
9
10
7
7
7
7
7
7
153
159
153
165.4
165
167.5
5
5
5
5
5
5
15
20
21
21
21
21
10
4
4
4
4
5
19
19
19
20
21
21
2
4
4
4
4
4
2
2
2
2
2
2
15
15
15
15
15
15
12
12
12
12
12
12
4
4
4
4
4
4
4
3
4
4
6
6
1
1
1
1
1
1
97,412
107,382
110,266
150,972
139,447
149,965
5
5
5
5
6
7
211
221
225
228
228.5
231.4
98
110
113
116
116.2
119.5
12
12
13.6
13.8
13.8
14.7
6
6
11
11
10
8
4
4
7
10
7
8
384
352
341
376
120
THIS PAGE LEFT BLANK INTENTIONALLY
CITY OF SCHERTZ, TEXAS
SINGLE AUDIT REPORT
CITY OF SCHERTZ, TEXAS
TABLE OF CONTENTS
SEPTEMBER 30,2O21
ElLi um
Independent Auditor's Report on Compliance for Each Major
Federal Program, and Report on Internal Control Over
Independent Auditor's Report un Internal Control Over
Financial Reporting and on Compliance and Other Matters
Based onan Audit of Financial Statements Performed in
Accordance with Government Auditing Standards .......... 3-4
Schedule of Expenditures of Federal Awards .................................................................
NoteotoSchedu|eofExpendhoreofFedera|Awards—
-----------------
Schedu|eofFlndingsandDuesUonodCosts ----------------------.
SunnmarySchedubofRiorAuditFlndings ----------------------..
THIS PAGE LEFT BLANK INTENTIONALLY
ATTILL. „ BROWN & HILL, L.L.P..
401 'Nest State Kghwayr 6
Waco, Texas 76710
254.772.4901 pbhcpaxom
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
Honorable Mayor and
Members of City Council
City of Schertz, Texas
We have audited in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards issued
by the Comptroller General of the United States, the financial statements of the governmental activities, the
business -type activities, each major fund, and the aggregate remaining fund information of the City of
Schertz, Texas (the "City ") as of and for the year ended September 30, 2021, and the related notes to the
financial statements, which collectively comprise the City's basic financial statements, and have issued our
report thereon dated March 4, 2022. Our report includes a reference to other auditors who audited the
financial statements of Schertz- Seguin Local Government Corporation and the Cibolo Valley Local Government
Corporation, as described in our report on City of Schertz, Texas' financial statements. This report does not
include the results of the other auditors' testing of internal control over financial reporting or compliance and
other matters that are reported on separately by those auditors.
Internal Control Over Financial Reporting
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.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees in the normal course of performing their assigned functions, to prevent, or detect
and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of
deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the
entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant
deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a
material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of
this section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses
may exist that have not been identified.
3
LOCATIONS OFFICE
TEXAS Waco Temple Hillsboro I Houston AICPA
NEWMEXIC0 I Albuquerque GAQC Member
Compliance and Other Matters
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
of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no
instances of noncompliance or other matters that are required to be reported under Government Auditing
Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the 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.
Waco, Texas
March 4, 2022
L L-P
4
PATTILLO, BROWN & HILL, L..L, .
6671 West State Highway 6
Waco, Texas 76710
254.772.4901 pbhcpaxom
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR
EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER
COMPLIANCE IN ACCORDANCE WITH THE UNIFORM GUIDANCE
Honorable Mayor and
Members of City Council
City of Schertz, Texas
Report on Compliance for Each Major Federal Program
We have audited the City of Schertz, Texas' (the 'City") compliance with the types of compliance
requirements described in the U.S. Office of Management and Budget (OMB) Compliance Supplement that
could have a direct and material effect on each of the City's major federal programs for the year ended
September 30, 2021. The City's major federal programs are identified in the summary of auditor's results
section of the accompanying schedule of findings and questioned costs.
Management's Responsibility
Management is responsible for compliance with the requirements of laws, regulations, contracts, and
grants applicable to its federal programs.
Auditor's Responsibility
Our responsibility is to express an opinion on compliance for each of the City's major federal programs
based on our audit of the types of compliance requirements referred to above. We conducted our audit of
compliance in accordance with auditing standards generally accepted in the United States of America; the
standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal
Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Awards ( "Uniform Guidance "). Those standards and the Uniform Guidance require that we plan and
perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance
requirements referred to above that could have a direct and material effect on a major federal program
occurred. An audit includes examining, on a test basis, evidence about the City's compliance with those
requirements and performing such other procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major
federal program. However, our audit does not provide a legal determination of the City's compliance.
Opinion on Each Major Federal Program
In our opinion, the City of Schertz, Texas, complied, in all material respects, with the types of
compliance requirements referred to above that could have a direct and material effect on each of its major
federal programs for the year ended September 30, 2021.
0
OFFICE LOCATIONS
TEXAS r Waco Temple Hillsboro r Houston AICPA
NEWMEXICO ( Albuquerque GAQC Member
Report on Internal Control over Compliance
Management of the City is responsible for establishing and maintaining effective internal control over
compliance with the types of compliance requirements referred to above. In planning and performing our audit
of compliance, we considered the City's internal control over compliance with the types of requirements that
could have a direct and material effect on each major federal program to determine the auditing procedures
that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each
major federal program and to test and report on internal control over compliance in accordance with Uniform
Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over
compliance. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over
compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal
program on a timely basis. A material weakness in internal control over compliance is a deficiency, or
combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that
material noncompliance with a type of compliance requirement of a federal program will not be prevented, or
detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a
deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance
requirement of a federal program that is less severe than a material weakness in internal control over
compliance, yet important enough to merit attention by those charged with governance.
Our consideration of 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.
Report on Schedule of Expenditures of Federal Awards
We have audited the financial statements of the governmental activities, business -type activities, each
major fund, and the aggregate remaining fund information of the City of Schertz, Texas, as of and for the year
ended September 30, 2021, and the related notes to the financial statements, which collectively comprise the
City's basic financial statements. We issued our report thereon dated March 4, 2022, which contained
unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming
opinions on the financial statements that collectively comprise the basic financial statements. The
accompanying Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as
required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements,
Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and is not a required part of
the basic financial statements. Such information is the responsibility of management and was derived from
and relates directly to the underlying accounting and other records used to prepare the basic financial
statements. The information has been subjected to the auditing procedures applied in the audit of the 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 Schedule of Expenditures of Federal
Awards is fairly stated in all material respects in relation to the basic financial statements as a whole.
The purpose of this report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements of the
Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
e?o"4 XOorn ` 4A L . L.
Waco, Texas
March 4, 2022
2
CITY OF SCHERTZ, TEXAS
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED SEPTEMBER 30, 2021
Federal Grantor/
Assistance
Pass- Through
Pass - Through Grantor/
listing
Entity Identifying
Federal
Program Title
Number
Number
Expenditures
U.S. Department of Justice
Direct Programs:
Equitable Sharing Agreement and Certification
16.922
N/A
119,649
Total Direct Programs
119,649
Total U.S. Department of Justice
U.S. Department of Transportation
Passed through the Texas Department of Transportation:
Highway Planning and Construction Cluster 20.205
Total Texas Department of Transportation
Total U.S. Department of Transportation
U.S. Department of Treasury
Passed through the Texas Division of Emergency Management:
COVID-19 - State and Local Fiscal Recovery Fund (ARP Act) 21.027
Total Texas Division of Emergency Management
Total U.S. Department of Treasury
National Endowment for the Humanities (NEH)
Passed through the Texas State Library and Archives Commission:
Grants to States - Interlibrary Loan Program (ILL) 45310
COVID -19 - National Leadership Grants - CARES Act
Grant for Museums and Libraries 45312
Total Texas State Library and Archives Commission
Total National Endowment for the Humanities (NEH)
U.S. Department of Health and Human Services
Passed through the Texas Health and Human Services Commission:
Medicaid Cluster - Ambulance Services -
Uncompensated Care Costs 93.778
Total Texas Health and Human Services Commission
Total U.S. Health and Human Services Commission
U.S. Department of Homeland Security
Passed through Texas Division of Emergency Management:
Disaster Grants - Public Assistance - TIFMAS
Total Texas Division of Emergency Management
Passed through Texas Office of the Governor:
Homeland Security Grant Program
Total Texas Office of the Governor
Total U.S. Department of Homeland Security
Total Expenditures of Federal Awards
The accompanying notes are an integral part
of this schedule. 5
97.036
0915 -17 -065
TX2511
902524
CARL -21034
119,649
724,993
724,993
724,993
303,000
303,000
303,000
19,824
24,491
44,315
44,315
N/A 466,757
466,757
466,757
N/A 88,294
88,294
NIA 78,398
78,398
166,692
$ 1,825,406
CITY OF SCHERTZ, TEXAS
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED SEPTEMBER 30, 2021
1. GENERAL
The accompanying schedule of expenditures of federal awards presents the activity of all applicable federal
awards of the City of Schertz, Texas. The City's reporting entity is defined in Note I to the City's basic
financial statements. Federal awards received directly from federal and state agencies as well as federal
awards passed through other government agencies are included in the respective schedule.
P #- 3_F -)!
CITY OF SCHERTZ, TEXAS
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED SEPTEMBER 30, 2021
Summary of the Auditor's Results
Financial Statements:
Type of auditor's report issued:
Internal control over financial reporting:
Material weakness(es) identified?
Significant deficiency(ies) identified that are
not considered a material weakness?
Noncompliance material to
financial statements noted?
Federal Awards:
Internal control over major programs:
Material weakness(es) identified?
Significant deficiency(ies) identified that are
not considered a material weakness?
Type of auditor's report issued on compliance for
major federal programs
Any audit findings disclosed that are required to be
reported in accordance with 2 CFR 200.516(a)?
Identification of major federal programs:
Assistance Listing Number(s):
20.205
►]i�iT►�
The dollar threshold used to distinguish between
type A and type B federal programs.
Auditee qualified as low -risk auditee?
Findings Relating to the Financial Statements Which
are Required to be Reported in Accordance With
Generally Accepted Government Auditing Standards
None reported
Findings and Questioned Costs for Federal Awards
None reported
0
Unmodified
No
None reported
No
No
None reported
Unmodified
None
Name of Federal Program or Cluster:
Highway Planning and Construction
Cluster
COVID -19 - State and Local Fiscal
Recovery Fund (ARP Act)
$750,000
No
CITY OF SCHERTZ, TEXAS
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
FOR THE YEAR ENDED SEPTEMBER 30, 2021
None