CAFR FY 2019-2020CITY OF SCHERTZ, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED
SEPTEMBER 30, 2020
OFFICIALS ISSUING REPORT
James M. Browne
City Manager
James Walters
Director of Finance
CITY OF SCHERTZ, TEXAS
FOR THE YEAR ENDED SEPTEMBER 30, 2020
TABLE OF CONTENTS
INTRODUCTORY SECTION
Page
Number
Letterof Transmittal ...................................................................... ............................... i - iv
CityOfficials .................................................................................. ............................... v
OrganizationalChart ...................................................................... ............................... vi
Certificate of Achievement .............................................................. ............................... vii
FINANCIAL SECTION
Independent Auditor's Report .......................................................... ............................... 1 - 3
Management Discussion and Analysis ............................................... ............................... 4- 12
Basic Financial Statements
Government -Wide Financial Statements:
Statement of Net Position .......................................................... ...............................
13- 14
Statement of Activities .............................................................. ...............................
15- 16
Fund Financial Statements:
Governmental Funds
BalanceSheet ....................................................................... ...............................
17- 18
Reconciliation of the Balance Sheet of Governmental
Funds to the Statement of Net Position ................................ ...............................
19
Statement of Revenues, Expenditures, and
Changes in Fund Balances .................................................. ...............................
20-21
Reconciliation of Revenues, Expenditures and Changes
In Fund Balances - Governmental Funds to the
Statement of Activities ....................................................... ...............................
22
Proprietary Funds
Statement of Net Position ....................................................... ...............................
23-24
Statement of Revenues, Expenses, and
Changes in Fund Net Position .............................................. ...............................
25
Statement of Cash Flows ........................................................ ...............................
26-27
Notes to the Financial Statements .............................................. ...............................
28- 54
Required Supplementary Information
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - General Fund - Budget and Actual ......................................................
55 56
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Economic Development Corporation - Budget and Actual .......................
57
NotestoBudgetarySchedu|es ----------------------------.
58
Schedule of Changes in Net Pension
Uabi|ityandKe|atedRabos -----------------------------
59-60
Schedule of Pension Contributions ................................................................................
61-62
Schodu|eofChangea - TMRSOtherPost-Emp|oymentBenofit
Uabi|ityandRe|atadRatios -----------------------------
63
Schedu|eofChangea - CityRetreeHealthOtherPost-Employment
Benefit Liability and Related Ratioa-------------------------.
64
Combining and Individual Fund Statements and Schedules
ComparabveBa|enceSheeto - Genera| Fund---------------------'
65
Comparative Schedules ofRevenues, Expenditures, and Changes in
Fund Balance - General Fund .................................................................................
66
Comparative Balance Sheets - Economic Development Corporation -----------
67
Comparative Schedules of Revenues, Expenditures, and Changes in
Fund Balance - Economic Development Corporation .................................................
68
ComparabveBa|anusSheeto - DabtSeniceFund -------------------.
69
Schedule nf Revenues, Expenditures, and Changes
in Fund Balance - Budget and Actual - Debt Service Fund .........................................
70
Comparative Balance Sheets -Capital PnjectsFund ------------------
71
Comparative Schedules of Revenues, Expenditures, and Changes in
Fund Ba|ance - CapiLa| ProjectsFund -----------------------.
72
Combining Balance Sheet -Nonmajor Governmental Funds ............................................
73-74
Combining Schedule of Revenues, Expenditures, and
Changes in Fund Balances - NonmajorGovernmenta| Funds------------..
75-76
Schedule of Revenues, Expenditures, and Changes
in Fund Balance - Budget and Actual - Hotel Occupancy Fund ...................................
77
Schedule of Revenues, Expenditures, and Changes
in Fund Balance - Budget and Actual - Park Fund-----------------..
78
Schedule of Revenues, Expenditures, and Changes
in Fund Balance - Budget and Actual - Tree Mitigation Fund ......................................
79
Schedule of Revenues, Expenditures and Changes
in Fund Balance -Traaaury Forfeitures Fund--------------------
80
Schedule of Revenues, Expenditures, and Changes
Schedule uf Revenues, Expenditures, and Changes
Schedule ofRevenues, Expenditures and Changes
in Fund Balance - Budget and Actual - Library Advisory Board Fund ........................... 83
Schedule ofRevenues, Expenditures and Changes
in Fund Balance - Budget and Actual - Historical Committee Fund---------- 84
Schedule uf Revenues, Expenditures, and Changes
STATISTICAL SECTION
NetPositionby[onnponent --------------------------
1
86-87
ChangainNatPosihon ----------------------------
2
88-91
Fund Balances uf Governmental Funds ..............................................................
3
92-93
Changes in Fund Balances, Governmental Funds----------------.
4
94-95
TaxRevenuebySource - Governmenta|Funds ----------------'
5
96-97
Total Water and Sewer Consumption and Rates ..................................................
6
98
Rindpa|VVaterandSewer[onsumers ---------------------
7
99
DirectandOvedappngPropertyTaxRates ------------------..
8
100
Phndpa|PropertyTaxpayers -------------------------.
g
101
PropertyTaxLevesandCo|bctions ----------------------
10
102
Taxable Assessed Value ................................ ----------....................
11
103-1O4
RaUosofOutstandingDettbyType ----------------------
12
105'106
RaUosofGenera|BondedDebtOutstanding ------------------.
13
107
DinectandOvedappngGovernnnenta|ActivibesDebt --------------
14
108
DebtMarginInformaton ---------------------------.
15
109
P|edgedRevenuoCoverage --------------------- -----
16
110
DemographioandEconunohcStatsbcs ---------------------.
17
111
Top Ten Principal Employers ................................ ----------..............
18
112
FuU-Urno Equivalent City Governmental Ennp|oyersbyFundion ---------.
10
113- 114
Operating Indicators by Function/Program .........................................................
20
115-118
Capital Asset Statistics by Fundion/Program------------------
21
119- 120
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INTRODUCTORY SECTION
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s
March 19, 2021
To the Honorable Mayor, City Council, and the Citizens of Schertz:
State law requires that local governments publish a complete set of financial statements presented in conformity
with generally accepted accounting principles in the United States of America (U.S. GAAP) and audited in
accordance with generally accepted auditing standards in the United States of America by a firm of licensed
certified public accountants. Pursuant to that requirement, we hereby issue the comprehensive annual financial
report of the City of Schertz for the fiscal year ended September 30, 2020.
This report consists of management's representations concerning the finances of the City of Schertz.
Consequently, management assumes full responsibility for the completeness and reliability of all the
information presented in this report. To provide a reasonable basis for making these representations,
management of the City of Schertz has established a comprehensive internal control framework that is designed
both to protect the government's assets from loss, theft, or misuse and to compile sufficient reliable information
for the preparation of the City of Schertz's financial statements in conformity with U.S. GAAP. Because the
cost of internal controls should not outweigh their benefits, the City of Schertz comprehensive framework of
internal controls has been designed to provide reasonable rather than absolute assurance that the financial
statements will be free from material misstatement. As management, we assert that, to the best of our
knowledge and belief, this financial report is complete and reliable in all material respects.
The City of Schertz's financial statements have been audited by Pattillo, Brown & Hill, LLP a firm of licensed
certified public accountants. The goal of the independent audit was to provide reasonable assurance that the
financial statements of the City of Schertz for the fiscal year ended September 30, 2020, are free of material
misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements; assessing the accounting principles used and significant estimates made
by management; and evaluating the overall financial statement presentation. The independent auditor
concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the
City of Schertz's financial statements for the fiscal year ended September 30, 2020, are fairly presented in
conformity with U.S. GAAP. The independent auditor's report is presented as the first component of the
financial section of this report.
GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the
basic financial statements in the form of Management's Discussion and Analysis (MD &A). This letter of
transmittal is designed to complement MD &A and should be read in conjunction with it. The City of Schertz's
MD &A can be found immediately following the report of the independent auditors.
Profile of the Government
The City of Schertz, incorporated in 1958, is located in the central part of Texas, which is considered to be a top
growth area in the state, and one of the top growth areas in the country. The City of Schertz currently occupies a
land area of 32.21 square miles with a population of 41,199 in 2019 according to the US Census Bureau. The
City of Schertz is empowered to levy a property tax on both real and personal properties located within its
boundaries. It also is empowered by state statue to extend its corporate limits by annexation, which occurs
periodically when deemed appropriate by the governing body.
The City of Schertz has operated under the council - manager form of government since November 30, 1972.
Policymaking and legislative authority are vested in a City Council consisting of the Mayor and seven at -large
1400 Schertz Parkway Schertz, Texas 78154 210.619.1000 scher:z.,.oyrf
a
INEMMANE,
couneilmembers. The City Council is responsible for establishing public policy on City matters by the passage
of appropriate ordinances and resolutions. The City Manager is responsible for overseeing the day -to -day
operations of the government, implementing policy established by City Council, and for appointing the heads of
the various departments. The council is elected on a non - partisan basis. Council members serve three -year
staggered terms, with two council members elected every three years and then three council members elected
the final three years in the cycle. The mayor is elected to serve a three -year term.
The City of Schertz provides a full range of services, including police and fire protection, EMS services, library
services, the construction and maintenance of streets, recreational facilities, cultural events, and water and sewer
services.
The annual budget and five -year forecast serve as the foundation for the City of Schertz's financial planning
and control. All city departments are required to submit requests for appropriation to the City Manager by June
of each year. The City Manager uses these requests as the starting point for developing a proposed budget. The
City Manager then presents the proposed budget to the council for review in early August. The council then
holds public hearings and community meetings on the proposed budget and to adopt a final budget by
September 30`i'. The fiscal year for Schertz is from October 1 through September 30. The appropriated budget is
prepared by each department (e.g. police). The City Manager may make transfers of appropriations within a
department. The City Manager may make transfers between departments and funds with City Council approval.
Budget to actual comparisons are provided in this report for each individual governmental fund for which an
appropriated annual budget has been adopted. For the general fund, this comparison is presented on pages 55 -56
as part of the required supplementary information.
Factors AffectinLy Financial Condition
The information presented in the financial statements is perhaps best understood when it is considered from the
broader perspective of the specific environment within which the City of Schertz operates.
Local economy. Economic growth in Schertz remained strong in 2020. The surrounding metro area saw some
contractions evidenced by the Federal Reserve Bank of Dallas reporting the San Antonio Business -Cycle Index
decreased 4.33% year over year for September 2020. This Index potentially indicates a new period of economic
contraction around the state. As of September 2020, the unemployment rate for Texas was 8.3% and several
metro areas including Austin, Dallas -Fort Worth, and San Antonio, are below the state average. Schertz in
particular had an unemployment rate of 6.2 percent during this time.
Despite these indicators for the surrounding area, the City of Schertz realized a 15.3% increase year - over -year
in sales tax collections during the fiscal year. Despite the pandemic, Schertz' retail outlets and restaurants
remained open and doing busines during the pandemic. The businesses in the industrial complex also remained
open, many of whom reworked their product lines to assist with creations of masks and other goods needed
during the pandemic.
Further showcasing Schertz' economic resilience, it also saw a diverse range of new products developed its real
estate and land markets with approximately 270,000 square feet of new commercial and industrial space. Nexus
Medical's new facility located on Schertz Parkway. The 36,450 sf building a project is host to 100 employees.
Other new facilities included Casa Mechanical's new facility (71,255 sf) located on 7770 FM 482 and Ryder
Truck's facility expansion (19,226 st) on 9993 Doerr Ln. The industrial vacancy rate decreased from 9.4% to
9.0% from the previous quarter.
Long -term financial planning. The community approved bond propositions in November 2010 for quality of
life projects which included an aquatics facility, improvements to the baseball fields and soccer fields, building
a new animal adoption facility, and improvements to Main Street. The only remaining project are the Main
Street improvements.
1400 Schertz Parkway Schertz, Texas 78154 210.619.1000 scheitz,co
COMMUNITY
("THERTZ I SERVICE
OPPORTUNITY
In November 2015, the City placed 2 bond propositions before the voters totaling $15 million. $7 million was
for FM roadways which the City will partner with the Texas Department of Transportation, who will provide
matching funds, and $8 million for a new Fire Station located in the southern portion of Schertz. $2 million for
the FM roadways have been issued and sent to the Texas Department of Transportation for improvements on
FM 1103 as of July 2018. In June 2018, the second $4 million was issued for the Fire Station to begin
construction. The fire station was completed in November 2020.
Current Year Budget Initiatives. For FY 2020 -21, the City is using the momentum from the previous year
and is putting an additional $500,000 into city infrastructure from the General Fund Fund Balance and
undergoing a new Comprehensive Land Use Plan. Due to growing needs the City will also hire a Police Captain
and Senior Planner.
Financial Information:
Internal Control. Management is responsible for establishing and maintaining internal controls designed to
ensure that assets of the City are protected from loss, theft or misuse and to provide adequate accounting
information compiled to allow for the preparation of financial statements in conformity with generally accepted
accounting principles for local governments as prescribed by the Governmental Accounting Standards Board
(GASB), the Financial Accounting Standards Board (FASB) and the American Institute of Certified Public
Accountants (AICPA). The internal control system is designed to provide reasonable, but not absolute assurance
that these objectives are met. The concept of reasonable assurance recognizes that the cost of an internal control
should not exceed the benefits derived from the internal control. The City utilizes financial accounting software
which is designed with a system of internal controls. These controls are continually being reevaluated to
provide reasonable, but not absolute, assurances.
Budget Controls. The City also utilizes budgetary controls. Legally expenditures cannot exceed the
appropriated amount. The objective of these budgetary controls is to ensure compliance with the adopted budget
approved by the City Council as mandated by the city charter and state law. The levels of budgetary control are
established at the line -item basis and at the fund level. Staff believes these controls help monitor and direct
approved expenditures to a level within the budget parameters which directly results in a strong financial
performance.
Financial Results. Assets and fund balances continue to grow as the City grows and financial results remain
strong. While additional debt was issued during the year, Staff closely monitors and plans the amount of
issuance to keep steady debt ratios per capita, per revenue, and per operations tax rate to the debt tax rate.
Examples of these ratios can be found in the Statistical Section on pages 121, 123, 125, and 127. A more
detailed summary of the City's Financial Performance is available in the Management Discussion and Analysis
section on page 4.
Independent Audit. Every year an independent audit is performed of the general ledger, accounts, financial
records, and transactions of all city departments. The audit is completed by an independent certified public
accounting firm selected by the City Council. The City is in compliance with this requirement and the
independent auditor's report by Pattillo, Brown & Hill, LLP. Certified Public Accountants, has been included in
this report.
Awards and Acknowledizements
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate
of Achievement for Excellence in Financial Reporting to the City of Schertz for its comprehensive annual
financial report for the fiscal year ended September 30, 2019. This was the 35th consecutive year that the City
has received this prestigious award. In order to be awarded a Certificate of Achievement, the City must publish
an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy
both generally accepted accounting principles and applicable legal requirements.
1400 Schertz Parkway Schertz, Texas 78154 210.619.1000 scheitz,co Sri
a
INEMMANS,
A Certificate of Achievement is valid for a period of one year only. We believe our current comprehensive
annual financial report continues to meet the Certificate of Achievement Program's requirements and we will be
submitting it to the GFOA to determine its eligibility for another certificate.
The preparation of this report would not have been possible without the efficient and dedicated services of the
entire staff of the finance department. We would like to express our appreciation to all members of the
department who assisted and contributed to the preparation of this report.
In conclusion, we would have none of the success we have enjoyed without the assistance of each and every
staff member, as well as the support and strategic direction from the Mayor and the City Council during the
strategic planning, pre- budget, and budget approval process.
Respectfully submitted,
James M. Browne
City Manager
':
James P. Walters
Finance Director
1400 Schertz Parkway Schertz, Texas 78154 210.619.1000 schertzxom
CITY OF SCHERTZ, TEXAS
CITY OFFICIALS
MAYOR RALPH GUTIERREZ
MAYOR PRO -TEM ROSEMARY SCOTT
CITY COUNCIL MARK E. DAVIS
SCOTTLARSON
MICHAEL DAHLE
DAVID SCAGLIOLA
ALLISON HEYWARD
TIM BROWN
CITY MANAGER JAMES M. BROWNE
DIRECTOR OF FINANCE JAMES WALTERS
CITY ATTORNEY CHARLES ZECH, DENTON, NAVARRO, ROCHA, BERNAL & ZECH, P.C.
v
CITY OF SCHERTZ
ORGANIZATIONAL
FY 2019-20
*Appointed by City Council vi
r 00 k
-io
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Schertz
Texas
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
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aL4��P*w:a
Executive Dir&ct6dCB0
Vii
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W��Slzl
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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, 2020, and the related notes to the financial statements, which
collectively comprise the City of Schertz, Texas' basic financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
The City of Schertz's management is responsible for the preparation and fair presentation of these
financial statements in accordance with accounting principles generally accepted in the United States of
America; this includes the design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of financial statements that are free from material misstatement, whether
due to fraud or error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We did not
audit the financial statements of the Schertz- Seguin Local Government Corporation or the Cibolo Valley Local
Government Corporation, which collectively represent 10.0 percent and 11.9 percent, respectively, of the
assets and net position of the Water and Sewer Fund, and 9.7 percent and 11.8 percent, respectively, of the
assets and net position of the business -type activities. Those statements were audited by other auditors
whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for
Schertz- Seguin Local Government Corporation and Cibolo Valley Local Government Corporation, is based
solely on the report of the other auditors. We conducted our audit in accordance with auditing standards
generally accepted in the United States of America and the standards applicable to financial audits contained
in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In
making those risk assessments, the auditor considers internal control relevant to the entity's preparation and
fair presentation of the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal
control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of significant accounting estimates made by management, as
well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinions.
1
OFFICE TI
TEXAS Waco i Temple 1 Hillsboro Houston AICPA
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, 2020, and the respective changes in financial position, and, where
applicable, cash flows thereof for the year then ended in accordance with accounting principles generally
accepted in the United States of America.
Report on Summarized Comparative Information
We have previously audited the City of Schertz, Texas' fiscal year 2019 financial statements, and we
expressed an unmodified audit opinion on those audited financial statements in our report dated March 18,
2020. In our opinion, the summarized comparative information presented herein as of and for the year ended
September 30, 2019 is consistent, in all material respects, with the audited financial statements from which it
has been derived.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis and required supplementary information, as listed in the table of
contents, be presented to supplement the basic financial statements. Such information, although not a part of
the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it
to be an essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with auditing standards generally accepted in the United States of
America, which consisted of inquiries of management about the methods of preparing the information and
comparing the information for consistency with management's responses to our inquiries, the basic financial
statements, and other knowledge we obtained during our audit of the basic financial statements. We do not
express an opinion or provide any assurance on the information because the limited procedures do not provide
us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Schertz, Texas' basic financial statements. The introductory section,
combining and individual nonmajor fund financial statements and schedules, and statistical section, are
presented for purposes of additional analysis and are not a required part of the basic financial statements.
The combining and individual nonmajor fund financial statements and schedules are the responsibility
of management and were derived from and relate directly to the underlying accounting and other records
used to prepare the basic financial statements. Such information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures, including
comparing and reconciling such information directly to the underlying accounting and other records used to
prepare the basic financial statements or to the basic financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States of America. In our
opinion, the combining and individual nonmajor fund financial statements and schedules are fairly stated, in
all material respects, in relation to the basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in
the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any
assurance on them.
2
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March 19,
2021, on our consideration of the City of Schertz, Texas' internal control over financial reporting and on our
tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on internal control over
financial reporting or on compliance. That report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the City of Schertz, Texas' internal control over financial
reporting and compliance.
Pa'4 XOorn � 4A ) L - L
Waco, Texas
March 19, 2021
3
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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 $243,392,976 (net position). Of this amount, $34,728,518 (unrestricted net position) may
be used to meet the City's ongoing obligations to citizens and creditors.
The City's total net position increased by $7,756,417. The primary reason for this increase was a decrease in the
City's net pension liability of approximately $4.1 million from the prior year.
As of the close of the current fiscal year, the City's governmental funds reported combined ending fund balances of
$50,993,654, a decrease of $5,840,724 in comparison with the prior year. The primary cause of this decrease was a
payment of $3.7 million by the City of Schertz Economic Development Corporation to Schertz 312, LLC related to an
economic development performance agreement.
At the end of the fiscal year, the combined total of the General Fund assigned and unassigned fund balances was
$12,098,536 which is 35.51% of the general fund expenditures not including capital outlay. The fund balance policy
is to reserve at least a 26% balance.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City's basic financial statements. The
City's basic financial statements comprise three components: 1) government -wide financial statements, 2) fund
financial statements, and 3) notes to the financial statements. This report also contains other supplementary
information in addition to the basic financial statements themselves.
Government -wide financial statements. The government -wide financial statements are designed to provide readers
with a broad overview of the City's finances, in a manner similar to a private- sector business.
The statement of net position presents information on all of the City's assets, 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 thirteen individual governmental funds. Information is presented separately
in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures,
and changes in fund balances for the general fund, the debt service fund, the economic development
corporation and the capital projects fund, all of which are considered to be major funds. Data from the
other seven governmental funds are combined into a single, aggregated presentation. Individual fund data
for each of these non -major governmental funds is provided in the form of combining statements
elsewhere in this report.
Proprietary funds. The City of Schertz maintains one type of proprietary fund. Enterprise funds are used to report
the same functions presented as business -type activities in the government -wide financial statements. The City of
Schertz uses enterprise funds to account for its water and sewer department and for its emergency medical services
department.
Proprietary funds provide the same type of information as the government -wide financial statements, only in more
detail. The proprietary fund financial statements provide separate information for the water and sewer department
and for the emergency medical services department, both of which are considered to be major funds of the City of
Schertz.
Notes to the financial statements. The notes provide additional information that is essential to a full
understanding of the data provided in the government -wide and fund financial statements.
Other information. In addition to the basic financial statements and accompanying notes, this report also presents
certain required supplementary information concerning the City's general fund budgetary schedule. The City of
Schertz adopts an annual appropriated budget for its general fund. A budgetary comparison schedule has been
provided for the general fund to demonstrate compliance with this budget. The economic development corporation
also adopts an annual budget, and a comparison schedule for it also is provided in the required supplementary
information.
The combining statements referred to earlier in connection with non -major governmental funds are presented
immediately following the required supplementary information.
Government -wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the
case of the City of Schertz, assets and deferred outflows exceeded liabilities and deferred inflows by $243,392,976
at the close of the most recent fiscal year. The largest portion of the City's total net position (68 %) reflects its net
investment in capital assets (e.g., land, buildings, machinery, and equipment) less any related debt used to acquire
those assets that is still outstanding, plus bond proceeds that have not yet been signed. The City of Schertz uses
these capital assets to provide services to citizens; consequently, these assets are not available for operational type
of future spending. Although the City's investment in its capital assets is reported net of related debt, it should be
noted that the resources needed to repay this debt must be provided from other sources, since the capital assets
themselves cannot be used to liquidate these liabilities.
I1
An additional portion of the City's total net position (18 %) represents resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net position, $34,728,518, may be
used to meet the government's ongoing obligations to citizens and creditors.
At the end of the current fiscal year, the City of Schertz is able to report positive balances in all three categories of
net position, both for the government as a whole, as well as for its separate
governmental and business -type
activities. The same situation held true for the prior fiscal year.
City of Schertz's Net Position
Government -Wide
Governmental Business -Type
Activities Activities
Tota 1
2020 2019 2020
2019
2020
2019
Current and other assets
$ 62,199,597 $ 62,483,126 $ 54,664,167 $
55,115,512 $
116,863,764 $
117,598,638
Capital assets
144,079,930 143,800,297 92,643,825
86,809,556
236,723,755
230,609,853
Total assets
206,279,527 206,283,423 147,307,992
141,925,068
353,587,519
348,208,491
Deferred outflows of resources
3,267,540 5,026,512 806,262
1,307,526
4,073,802
6,334,038
Current liabilities
12,527,345 8,595,801 5,245,378
4,792,951
17,772,723
13,388,752
Long -term liabilities
73,002,458 81,400,396 20,706,167
23,649,513
93,708,625
105,049,909
Total liabilities
85,529,803 89,996,197 25,951,545
28,442,464
111,481,348
118,438,661
Deferred inflows of resources
2,235,923 434,900 551,074
32,409
2,786,997
467,309
Net position:
Net investment in capital assets
88,959,102 89,869,766 75,969,319
68,271,075
164,928,421
158,140,841
Restricted
28,664,438 28,088,355 15,071,599
13,232,638
43,736,037
41,320,993
Unrestricted
4,157,801 2,920,717 30,570,717
33,254,008
34,728,518
36,174,725
Total net position
$ 121,781,341 $ 120,878,838 $ 121,611,635 $
114,757,721 $
243,392,976 $
235,636,559
I
The government's net position increased by $7,756,417 during the current fiscal year. Approximately $4.1 million of
this increase represents a decrease in the City's net pension liability from the previous year. The following table
indicates changes in net position for governmental and business -type activities followed by graphs displaying total
revenues and expenses by type:
Revenues:
Program revenues:
Charges for services
Operating grants & contributions
Capital contributions
General revenues:
Property taxes
Othertaxes
Investment earnings
Miscellaneous
Total revenues
Expenses:
General government
Public safety
Public environment
Parks and recreation
Cultural
Health
Administration
Interest and other fees
Water and sewer
EMS
Total expenses
Increase in net position
before transfers
Transfers
Change in net position
Net position - beginning of year
Prior period adjustment
Net position - end of year
City of Schertz's Changes in Net Position
Government -Wide
Governmental Business -Type
Activities Activities Total
2020 2019 2020 2019 2020 2019
$ 5,619,998
$ 5,080,958 $
35,824,170 $
33,930,093
$ 41,444,168
$ 39,011,051
2,113,673
692,042
-
-
2,113,673
692,042
531,096
1,319,793
292,408
1,975,524
823,504
3,295,317
19,844,912
19,151,005
-
-
19,844,912
19,151,005
17,076,462
15,439,226
-
-
17,076,462
15,439,226
804,674
1,470,258
431,555
855,216
1,236,229
2,325,474
767,799
984,257
706,296
267,788
1,474,095
1,252,045
46,758,614
44,137,539
37,254,429
37,028,621
84,013,043
81,166,160
10,310,363
6,534,013
-
-
10,310,363
6,534,013
16, 575,191
15,448,886
16, 575,191
15,448, 886
8,825,099
5,495,192
8,825,099
5,495,192
3,012,134
3,022,278
3,012,134
3,022,278
1,089,564
1,119, 650
1,089,564
1,119, 650
596,288
516,890
596,288
516,890
3,419,407
3,853,255
3,419,407
3,853,255
2,028,065
2,196,180
-
-
2,028,065
2,196,180
-
-
24,349,219
25,608,390
24,349,219
25,608,390
-
6,051,296
6,529,631
6,051,296
6,529,631
45,856,111
38,186,344
30,400,515
32,138,021
76,256,626
70,324,365
902,503
5,951,195
6,853,914
4,890,600
7,756,417
10,841,795
( 81,525)
-
81,525
-
-
902,503
5,869,670
6,853,914
4,972,125
7,756,417
10,841,795
120,878,838
115,009,168
114,757,721
98,368,826
235,636,559
213,377,994
-
-
-
11,416,770
-
11,416,770
$ 121,781,341
$ 120,878,838 $
121,611,635 $
114,757,721
$ 243,392,976
$ 235,636,559
N
TOTAL REVENUES — GOVERNMENT -WIDE
$18,000,000
$16,000,000
$14,000,000
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
I to] CAIN O'/» a 7►1uIa0hATiT /17
General Public Safety Public Parks and Cultural Health Administration Interest and
Government Environment Recreation Other Fees
2020 -2019
8
GENERAL REVENUE 8Y SOURCE — GOVERNMENTAL ACTIVITIES
roper `ax
x'm
TOTAL REVENUES AND EXPENSES — BUSINESS-TYPE ACTIVITIES
$40,000,000
*35,w0,00"
$30'vv0,mm
*o'vv0,mm
$20'vo0,mm
*15'uv0,mm
*10'uv0,mm
*5,mm,0vo
mm 2019
- Revenues a Expenses
�
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
�
BUSINESS-TYPE REVENUES AND EXPENSES
Water and Sewer Utilities EMS
Amsmnues owonopemun Revenues % Capital Contributions and Transfers Expenses
Financial Analysis of the Government's Funds
As noted earlier, the City nfSchertz uses fund accounting to ensure and demonstrate compliance with finance-
related legal requirements.
Governmental funds. The focus of the City's governmental funds is to provide information on near-term inflows,
outflows, and balances of spendable resources. Such information is useful in assessing the City's financing
requirements. In particular, unassigned fund balance may serve as a useful measure of government's net
resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the City's governmental funds reported combined ending fund
balances of $50,993,654. Of this total amount, $10,126,057 constitutes unassigned fund balance, which
is available for spending at the government's discretion. The remainder offund balance 1s non-spendable,
restricted, or assigned to indicate that it is not available for new spending because it has already been
committed to pay debt service, for capital improvement projects, and other assigned purposes.
The general fund is the chief operating fund of the City of Schertz. At the end of the current fiscal year,
unassigned fund balance of the general fund was $10,126,057, while total fund balance was $14,897,460,
a decrease of $2,568,208 from the prior year. Overall, the decrease was caused by a large budgeted transfer out for
capital projects, but the fund also experienced increases in property and sales tax revenues in spite of the COVID-19
pandemic. As a measure of the general fund's liquidity, it may be useful to compare both unassigned fund balance
and total fund balance Lo total fund expenditures. Unassigned fund balance represents 35.5196nf total general fund
expenditures, not including capital outlay.
The debt service fund has a total fund balance of $785,919, all of which is restricted for the payment of
debt service. The net decrease in fund balance during the current year in the debt service fund was $216,307. This
decrease was due to regular principal and interest payments on long-term debt exceeding interest and sinking
property tax revenue during the year. Over time, however, the debt service fund has sufficient cash and equivalents
on hand to remain liquid.
The capital projects fund has a total fund balance of $10,137,558, a decrease of $3,050,113. This decrease was
caused by the expenditure of accumulated funds for planned capital projects, which were supplemented by amounts
transferred from the general and Economic Development Corporation funds.
10
The Economic Development Fund presents the activities of the Schertz Economic Development Corporation (the
"EDC "), which promotes economic development activities using a portion of the City's sales tax revenue. At year
end, the EDC fund reported an ending fund balance of $21,018,626, which is a decrease of $758,630 compared to
the prior year. The primary cause of this change was a planned use of fund balance that was less than the $3 million
budgeted.
Proprietary funds. The City's proprietary funds provide the same type of information found in the government -
wide financial statements, but in more detail. Unrestricted net position of the water and sewer fund at the end of the
year amounted to $29,368,969 and those for the Schertz EMS fund amounted to $1,201,748, which are 124% and
20% of fund operating costs, respectively.
General Fund Budgetary Highlights
The General Fund expenditures were $2,129,055 less than the $31,816,758 budget. This was the result of cost
savings across most of the General Fund due to decreased demand for services. Generally, activities citywide
decreased because of the COVID -19 pandemic beginning in March 2020. Revenues were $592,075 more than
budgeted, primarily due to increased property and sales tax revenues over the budgeted amount. Overall, ending
fund balance in the general fund was $2,326,686 higher than budgeted.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capita/ assets. The City's investment in capital assets for its governmental and business -type activities as of
September 30, 2020, amounts to $236,723,755 (net of accumulated depreciation). Developers contributed
$823,504 in infrastructure during the year. The City also has several projects in progress from voter approved
bonds.
Significant capital asset activity for the year included continued construction on the Corbett Elevated Tank
project for $2.5 million, various sewer system improvements amounting to $3.6 million, and an additional $1
million spent on the new Fire Station 3.
Additional information on the City's capital assets can be found in the noes to the basic financial statements.
K07► [elk 4 7u0 7 ::31
At the end of the current fiscal year, the City of Schertz had total long -term debt outstanding of $79,905,573. The
related principal and interest payment for the bonds are backed by an annual ad valorem tax levied against all
taxable property within the City. The City of Schertz maintains a "AA +" rating from Standard and Poors.
Governmental
Business -Type
Activities
Activities
Total
2020
2019
2020
2019
2020
2019
Land
$ 8,074,199
$ 8,073,199
$ 1,844,488
$ 1,696,942
$ 9,918,687
$ 9,770,141
Water rights
-
-
70,245
70,245
70,245
70,245
Buildings and improvements
44,447,749
46,367,441
3,635,532
5,489,184
48,083,281
51,856,625
Machinery, equipment, and
1,216,809
1,562,538
TOTALS
$ 63,355,055 $ 68,675,395 $
16,550,518 $ 18,642,168 $
-
vehicles
14,552,416
12,958,097
5,976,040
6,007,550
20,528,456
18,965,647
Infrastructure
119,945,442
117,414,346
100,588,293
100,295,885
220,533,735
217,710,231
Construction in progress
24,826,910
21,045,668
17,266,273
9,248,439
42,093,183
30,294,107
Accumulated depreciation
( 67,766,786)
( 62,058,454)
( 36,737,046)
( 35,998,689}
( 104,503,832)
1_9 57 14 3)
TOTALS
$ 144,079,930
$ 143,800,297
$ 92,643,825
$ 86,809,556
$ 236,723,755
$ 230,609,853
Significant capital asset activity for the year included continued construction on the Corbett Elevated Tank
project for $2.5 million, various sewer system improvements amounting to $3.6 million, and an additional $1
million spent on the new Fire Station 3.
Additional information on the City's capital assets can be found in the noes to the basic financial statements.
K07► [elk 4 7u0 7 ::31
At the end of the current fiscal year, the City of Schertz had total long -term debt outstanding of $79,905,573. The
related principal and interest payment for the bonds are backed by an annual ad valorem tax levied against all
taxable property within the City. The City of Schertz maintains a "AA +" rating from Standard and Poors.
EIFI
Governmental
Business -Type
Activities
Activities
Total
2020 2019
2020 2019
2020
2019
General obligation bonds
$ 44,620,000 $ 48,320,000 $
3,685,000 $ 4,445,000 $
48,305,000 $
52,765,000
Certificates of obligation
15,235,000 16,235,000
11,505,000 12,330,000
26,740,000
28,565,000
Tax notes and leases
362,134 555,699
282,468 659,421
644,602
1,215,120
Premium on bonds
2,170,381 2,338,297
828,781 871,608
2,999,162
3,209,905
Compensated absences
967,540 1,226,399
249,269 336,139
1,216,809
1,562,538
TOTALS
$ 63,355,055 $ 68,675,395 $
16,550,518 $ 18,642,168 $
79,905,573 $
87,317,563
Total debt decreased compared to the prior year due to continued
payment on existing debt
without any
additional
issuances. Additional information on the City's long -term debt
can be found in the notes to the basic financial
statements.
EIFI
Economic Factors and Next Year's Budgets and Rates
At the end of the last fiscal year, the assigned and unassigned fund balance in the general fund increased to $14.2
million. The City of Schertz has appropriated $1.1 million of this amount for spending in the 2021 fiscal year budget
in accordance to the City's fund balance policy. The approved tax rate decreased from $0.5146 to $0.5087 per $100
of valuation.
The City also considered the effects of the ongoing COVID -19 pandemic. Although the pandemic has resulted in
an economic downturn and presents significant future uncertainty, the City's property tax revenues were not
significantly affected, as those tax revenues were due in January before the pandemic began. Each year the City
updates its five -year budgeting forecast and has implemented a long -term debt model to assist management in
making informed financial decisions that will impact the community now and in the future.
Requests for Information
This financial report is designed to provide a general overview of the City's finances for all those with an interest
in the government's finances. Questions concerning any of the information provided in this report or requests for
additional financial information should be addressed to the Office of the Finance Director, City of Schertz, 1400
Schertz Parkway, Schertz, Texas 78154.
i Vj
THIS PAGE LEFT BLANK INTENTIONALLY
BASIC
FINANCIAL STATEMENTS
CITY OF SCHERTZ, TEXAS
STATEMENT OF NET POSITION
SEPTEMBER 30, 2020
ASSETS
Cash and cash equivalents
Investments
Receivables, net of allowances:
Taxes
Accounts and other
Accrued interest
Inventories
Prepaids
Internal balances
Restricted assets:
Cash and cash equivalents
Investments
Service concession arrangement receivable:
Due within one year
Due in more than one year
Investment in joint venture
Capital assets:
Land
Water rights
Buildings and improvements
Equipment and vehicles
Infrastructure
Construction in progress
Accumulated depreciation
Total Assets
DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on debt refunding
Deferred OPEB related outflows
Deferred pension related outflows
Total Deferred Outflows of Resources
Primary Government
Governmental Business -Type
Activities Activities Total
$ 48,999,891 $ 13,084,856
4,677,758 1,139,981
3,332,944
3,420,493
6,538,364
-
6,324
99,871
236,682
14,916
2,311
16,139)
16,139
867,708
17,504,886
-
1,831,586
90,909 -
711,246 -
- 14,303,038
8,074,199
44,447, 749
14,552,416
119,945,442
24,826,910
( 67,766,786)
206,279,527
591,766
464,967
2,210,807
3,267,540
1,844,488
70,245
3,635,532
5,976,040
100,588,293
17,266,273
( 36,737,046)
147,307,992
40,743
133,129
632,390
806,262
$ 62,084,747
5,817,739
3,332,944
9,958,857
6,324
336,553
17,227
18,372,594
1,831,586
90,909
711,246
14,303,038
9,918,687
70,245
48,083,281
20,528,456
220,533,735
42,093,183
( 104,503,832)
353,587,519
632,509
598,096
2,843,197
4,073,802
LIABILITIES
Accounts payable
5,446,713
3,491,409
8,938,122
Accrued liabilities
1,209,493
321,460
1,530,953
Retainage payable
111,135
332,514
443,649
Due to other governments
123,911
-
123,911
Unearned revenue
39,159
444,762
483,921
Accrued interest payable
328,322
95,042
423,364
Customer deposits
7,040
560,191
567,231
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, 2020
Primary Government
Governmental
Business -Type
Activities
Activities
Total
$ 193,508
$ 56,048 $
249,556
49,258
14,087
63,345
55,241
-
55,241
4,963,565
1,856,953
6,820,518
774,032
2,263,331
12,108,954
432,191
57,423,950
85,529,803
314,723
390,190
1,531,010
2,235,923
L.I. —J. tlyj
2,008,135
807,140
2,116,464
21,018,626
755,464
906,735
1,051,874
4,157,801
$ 121,781,341
The accompanying notes are an integral part
of these financial statements. 14
224,190
647,333
3,463,260
14,444, 296
25,951,545
111,750
439,324
551,074
75,969,319
15,071,599
30,570,717
$ 121,611,635
998,222
2,910,664
15,572,214
432,191
71,868,246
111,481,348
314,723
501,940
1,970,334
2,786,997
164,928,421
2,008,135
807,140
2,116,464
21,018,626
755,464
906,735
1,051,874
15,071,599
34,728, 518
$ 243,392,976
CITY OF SCHERTZ, TEXAS
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2020
Business -type activities:
Water and sewer 24,349,219 29,709,279
EMS 6,051,296 6,114,891
Total Business -Type Activities 30,400,515 35,824,170
Total Primary Government $ 76,256,626 $ 41,444,168
General revenues:
Taxes:
Ad valorem
Sales
Franchise fees
Hotel /motel
Mixed drink
Investment earnings
Miscellaneous
Total General Revenues
Change in Net Position
Net Position - Beginning
Net Position - Ending
The accompanying notes are an integral part
of these financial statements. 15
292,408
- 292,408
$ 2,113,673 $ 823,504
Program Revenues
Operating
Capital
Charges for
Grants and
Grants and
Functions /Programs
Expenses
Services
Contributions
Contributions
Primary government:
Governmental activities:
General government
$ 10,310,363
$ 836,246
$ -
$ -
Public safety
16,575,191
3,276,129
2,100,164
-
Public environment
8,825,099
850,201
-
531,096
Parks and recreation
3,012,134
331,174
-
-
Cultural
1,089,564
299,944
13,509
-
Health
596,288
26,304
-
-
Administration
3,419,407
-
-
-
Interest
2,028,065
-
-
-
Total Governmental Activities
45,856,111
5,619,998
2,113,673
531,096
Business -type activities:
Water and sewer 24,349,219 29,709,279
EMS 6,051,296 6,114,891
Total Business -Type Activities 30,400,515 35,824,170
Total Primary Government $ 76,256,626 $ 41,444,168
General revenues:
Taxes:
Ad valorem
Sales
Franchise fees
Hotel /motel
Mixed drink
Investment earnings
Miscellaneous
Total General Revenues
Change in Net Position
Net Position - Beginning
Net Position - Ending
The accompanying notes are an integral part
of these financial statements. 15
292,408
- 292,408
$ 2,113,673 $ 823,504
Net (Expense) Revenue and Changes in Net Position
Primary Government
Governmental Business -Type
Activities Activities Total
$( 9,474,117)
( 11,198,898)
( 7,443,802)
( 2,680,960)
( 776,111)
( 569,984)
( 3,419,407)
( 2,028,065)
( 37,591,344)
( 37,591,344)
19, 844, 912
14,432,152
2,305,225
268,946
70,139
804,674
767,799
38,493,847
902,503
120,878,838
5,652,468
63,595
5,716,063
5,716,063
431,555
706,296
1,137,851
6,853,914
114,757,721
$ 121,781,341 $ 121,611,635
$( 9,474,117)
( 11,198,898)
( 7,443,802)
( 2,680,960)
( 776,111)
( 569,984)
( 3,419,407)
( 2,028,065)
( 37,591,344)
5,652,468
63,595
5,716,063
( 31,875,281)
19,844,912
14,432,152
2,305,225
268,946
70,139
1,236,229
1,474,095
39,631,698
7,756,417
235,636,559
$ 243,392,976
16
CITY OF SCHERTZ, TEXAS
BALANCE SHEET
GOVERNMENTALFUNDS
SEPTEMBER 30, 2020
General
Capital Projects
Debt Service
Fund
Fund
Fund
ASSETS
Cash and cash equivalents $
11,379,721
$ 10,677,080
$ 785,919
Investments
2,507,998
-
-
Receivables (net of allowances)
Taxes
2,393,311
-
120,816
Accounts and other
3,381,019
-
-
Inventory
99,871
-
-
Prepaid items
14,916
-
-
Restricted assets:
Cash and cash equivalents
867,708
-
-
Total Assets
20,644,544
10,677,080
906,735
LIABILITIES
Accounts payable
1,005,821
428,387
-
Accrued salaries and benefits
1,209,493
-
-
Retainage payable
-
111,135
-
Customer deposits
7,040
-
-
Due to other governments
123,911
-
-
Due to other funds
16,139
-
-
Unearned revenues
39,159
-
-
Total Liabilities
2,401,563
539,522
-
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
3,345,521
-
120,816
Total Deferred Inflows of Resources
3,345,521
-
120,816
FUND BALANCES
Nonspendable for:
Inventory
99,871
-
-
Prepaid items
14,916
-
-
Restricted for:
Police and public safety /municipal court
226,092
-
-
Municipal court
823,452
-
-
PEG capital fees
807,140
-
-
Capital improvement
-
6,065,616
-
Debt service
-
-
785,919
Tourism development
-
-
-
Parks and tree mitigation
-
-
-
Historical Committee and library
-
-
-
Economic development
-
-
-
Animal control
33,408
-
-
Veterans
2,109
-
-
Scholarships
104,156
-
-
Committed for:
Capital Projects
-
4,071,942
-
Civic Center /CIED
687,780
-
-
Assigned for:
Property replacement
891,319
-
-
Subsequent year's budget
1,081,160
-
-
Unassigned
10,126,057
-
-
Total Fund Balances
14,897,460
10,137,558
785,919
Total Liabilities, Deferred Inflows of Resources,
and Fund Balances $
20,644,544
$ 10,677,080
$ 906,735
The accompanying notes are an integral part
of these financial statements. 17
Economic Nonmajor Total
Development Governmental Governmental
Corporation Funds Funds
$ 22,032,946 $
2,169,760
818,817
7,949
4,010,846
4,124,225
31,525
1,659
$ 48,999,891
4,677,758
3,332,944
3,420,493
99,871
14,916
867,708
61,413,581
5,446,713
1,209,493
111,135
7,040
123,911
16,139
39,159
6,953,590
3,466,337
3,466,337
99,871
14,916
- 255,787
481,879
- -
823,452
- -
807,140
- 937,627
7,003,243
- -
785,919
- 2,116,464
2,116,464
- 755,464
755,464
- 88,749
88,749
21,018,626 -
21,018,626
- -
33,408
- -
2,109
- -
104,156
- -
4,071,942
- -
687,780
- -
891,319
- -
1,081,160
- -
10,126,057
21,018,626 4,154,091
50,993,654
$ 25,029,472 $ 4,155,750
$ 61,413,581
1$
THIS PAGE LEFT BLANK INTENTIONALLY
CITY OF SCHERTZ, TEXAS
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
SEPTEMBER 30, 2020
Total Fund Balances - Governmental Funds $ 50,993,654
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets used in governmental activities are not current financial resources
and, therefore, are not reported in the governmental funds balance sheet. 144,079,930
Bonds payable and accrued compensated absences will not be liquidated with
current financial resources and, therefore, have not been included in the fund
financial statements. ( 61,184,674)
Interest payable on long -term debt is accrued in the government -wide financial
statements, whereas in the fund financial statements, interest expenditures are
reported when due. (
328,322)
Premiums on bond issuances and deferred losses on bond refunding are
recorded as other financing sources and uses when paid in the fund financial
statements but are capitalized and amortized in the government -wide financial
statements over the life of the bonds.
Premiums (
2,170,381)
Deferred loss
591,766
Receivables from grants, property taxes and fines and fees are not available
soon enough to pay for the current period's expenditures and are, therefore,
deferred in the fund financial statements.
3,466,337
Included in the items related to debt is the recognition of the City's net pension
liability, total OPEB liability, and related deferred outflows and inflows of
resources.
Net pension liability (
12,108,954)
Deferred outflows related to pensions
2,210,807
Deferred inflows related to pensions (
1,531,010)
Total OPEB liability (
2,312,589)
Deferred outflows related to OPEB
464,967
Deferred inflows related to OPEB (
390,190)
Net Position of Governmental Activities $
121,781,341
The accompanying notes are an integral part
of these financial statements. 19
CITY OF SCHERTZ, TEXAS
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2020
REVENUES
Taxes
Permits and fees
Service fees
Fines and fees
Intergovernmental
Investment earnings
Miscellaneous
Total Revenues
EXPENDITURES
Current:
General government
Public safety
Public environment
Parks and recreation
Cultural
Health
Administration
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Bond issue costs
Total Expenditures
Excess (Deficiency) of Revenues
Over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCE
FUND BALANCES - BEGINNING
FUND BALANCES - ENDING
General Capital Projects Debt Service
Fund Fund Fund
$ 25,000,163
1,750,837
1,724,150
833,148
951,604
300,369
559.393
31,119,664
154,977
132,901
287,878
$ 6,714,516
19,900
75,000
6,809,416
5,381,790 - -
15,324,530 - -
1,270,894 - -
2,067,649 - -
1,034,435 - -
589,616 - -
2,799,004 - -
1,175,241 7,837,991 -
44,544 - 4,885,000
- - 2,136,523
- - 4,200
29,687,703 7,837,991 7,025,723
1,431,961 ( 7,550,113) ( 216,307)
( 4,000,169)
( 4,000,169)
( 2,568,208)
17,465,668
$ 14,897,460
The accompanying notes are an integral part
of these financial statements. 20
4,5UU,000
( 3,050,113)
13,187,671
$ 10,137,558
( 216,307)
1,002,226
$ 785,919
Economic
Nonmajor
Total
Development
Governmental
Governmental
Corporation
Funds
Funds
$ 4,819,288
$ 268,946
$ 36,802,913
-
56,427
1,807,264
-
859,448
2,583,598
-
47,509
880,657
-
-
951,604
288,740
40,688
804,674
-
505
767,799
5,108,028
1,273,523
44,598,509
4,886,456
480,202
5,366,658
96,123
42,063
34,434
10,456
74,428
263,654
521,158
10,364,369
15,366,593
1,270,894
2,102,083
1,044,891
589,616
3,353,634
9,276,886
4,929,544
2,136,523
4,200
50,439,233
( 258,630) 752,365 ( 5,840,724)
( 500,000)
( 500,000)
( 758,630)
21,777,256
$ 21,018,626
i.0
169
752,534
3,401,557
$ 4,154,091
4,500,169
( 4,500,169)
( 5,840,724)
56,834,378
$ 50,993,654
21
CITY OF SCHERTZ, TEXAS
RECONCILIATION OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2020
Net Changes in Fund Balances - Governmental Funds
Amounts reported for governmental activities in the statement of activities are
different because:
Governmental funds report capital outlays as expenditures. However, in the
governmental activities statement of activities, that cost of those assets is
allocated over their estimated useful lives and reported as depreciation expense.
Capital outlay
Depreciation expense
The net effect of miscellaneous transactions involving capital assets (i.e., sales,
trade -ins, or donations) is to decrease net position.
Revenues in the Statement of Activities that do not provide current financial
resources are not reported as revenues in the funds.
Grants
Property taxes
Court fines
The issuance of long -term debt (e.g. bonds) provides current financial resources to
governmental funds, while the repayment of the principal of long -term debt
consumes the current financial resources of governmental funds. Neither
transaction, however, has any effect on net position. Also, governmental funds
report the effect of premiums, discounts, and similar items when debt is first
issued, whereas the amounts are deferred and amortized in the Statement of
Activities.
Repayment of principal of long -term debt
Amortization of:
Loss on refunding
Current year changes in certain long -term liabilities do not require the use of
current financial resources and, therefore, are not reported as expenditures in
governmental funds.
Compensated Absences
Net pension liability
Total OPEB liability
$( 5,840,724)
6,893,784
( 6,612,811)
1,340)
1,526,256
( 15,708)
118,461
5,061,481
80,729)
258,859
263,110)
167,387)
Interest payable on long -term debt is accrued in the government -wide financial
statements, whereas in the fund financial statements, interest expenditures are
reported when due. 25,471
Change in Net Position of Governmental Activities
The accompanying notes are an integral part
of these financial statements. 22
$ 902,503
ASSETS
Current assets:
Cash and cash equivalents
Investments
Accounts receivable, net of allowance:
Customer accounts
Due from other funds
Accrued interest
Inventory
Prepaids
Total Current Assets
Noncurrent assets:
Restricted assets:
Cash and cash equivalents
Investments
Investment in joint ventures
Capital assets:
Land
Water rights
Buildings and improvements
Machinery, equipment, and vehicles
Infrastructure
Construction in progress
Less: accumulated depreciation
Total Noncurrent Assets
Total Assets
CITY OF SCHERTZ, TEXAS
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
SEPTEMBER 30, 2020
17,504,886 - 17,504,886
1,831,586 - 1,831,586
14,303,038 - 14,303,038
1,844,488
Business -Type
1,844,488
70,245
-
Activities
3,635,532
Governmental
3,635,532
Enterprise Funds
2,744,957
Activities
100,588,293
-
Total
17,266,273
Water and
Schertz
Enterprise
Internal
Sewer System
EMS
Fund
Service Fund
142,589,945
4,718,047
147,307,992
$ 11,686,996
$ 1,397,860 $
13,084,856
$ -
1,139,981
-
1,139,981
-
4,052,754
2,485,610
6,538,364
-
-
16,139
16,139
-
6,324
-
6,324
-
112,717
123,965
236,682
-
-
2,311
2,311
-
16,998,772
4,025,885
21,024,657
-
17,504,886 - 17,504,886
1,831,586 - 1,831,586
14,303,038 - 14,303,038
1,844,488
-
1,844,488
70,245
-
70,245
3,635,532
-
3,635,532
3,231,083
2,744,957
5,976,040
100,588,293
-
100,588,293
17,266,273
-
17,266,273
( 34,684,251)
( 2,052,795) (
36,737,046)
125,591,173
692,162
126,283,335
142,589,945
4,718,047
147,307,992
DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on refunding 40,743 - 40,743
Deferred OPEB related outflows 76,987 56,142 133,129
Deferred pension related outflows 235,622 396,768 632,390
Total Deferred Outflows of Resources 353,352 452,910 806,262
The accompanying notes are an integral part
of these financial statements. 23
CITY OF SCHERTZ, TEXAS
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
SEPTEMBER 30, 2020
The accompanying notes are an integral part
of these financial statements. 24
Business -Type
Activities
Governmental
Enterprise Funds
Activities
Total
Water and
Schertz
Enterprise
Internal
Sewer System
EMS
Fund
Service Fund
LIABILITIES
Current liabilities:
Accounts payable
$ 3,415,313
$ 76,096 $
3,491,409
$ -
Accrued liabilities
110,467
210,993
321,460
-
Retainage payable
332,514
-
332,514
-
Customer deposits
560,191
-
560,191
-
Accrued interest
92,897
2,145
95,042
-
Unearned revenue
444,738
24
444,762
-
Current portion of long -term liabilities:
Compensated absences
25,206
30,842
56,048
-
Total OPEB liability
5,289
8,798
14,087
Long -term debt
1,680,000
176,953
1,856,953
-
Total Current Liabilities
6,666,615
505,851
7,172,466
-
Noncurrent liabilities:
Compensated absences
100,823
123,367
224,190
-
Total OPEB liability
347,542
299,791
647,333
-
Net pension liability
1,300,280
2,162,980
3,463,260
-
Long -term debt
14,256,021
188,275
14,444,296
-
Total Noncurrent Liabilities
16,004,666
2,774,413
18,779,079
-
Total Liabilities
22,671,281
3,280,264
25,951,545
-
DEFERRED INFLOWS OF RESOURCES
Deferred OPEB related inflows
55,943
55,807
111,750
-
Deferred pension related inflows
133,120
306,204
439,324
-
Total Deferred Outflows of Resources
189,063
362,011
551,074
-
NET POSITION
Net investment in capital assets
75,642,385
326,934
75,969,319
-
Restricted for construction
15,071,599
-
15,071,599
-
Unrestricted
29,368,969
1,201,748
30,570,717
-
Total Net Position
$ 120,082,953
$ 1,528,682 $
121,611,635
$ -
The accompanying notes are an integral part
of these financial statements. 24
CITY OF SCHERTZ, TEXAS
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2020
OPERATING REVENUES
Fees charged to users
Charges for premiums
Other charges
Miscellaneous
Total Operating Revenues
OPERATING EXPENSES
Personnel services
General and administrative
Contractual services
Supplies and maintenance
Depreciation
Total Operating Costs
Operating Income (Loss)
NON - OPERATING REVENUES (EXPENSES)
Investment revenue
Lease revenue
Interest expense
Total Non - Operating Revenues (Expenses)
Income before contributions
Capital contributions
CHANGE IN NET POSITION
NET POSITION - BEGINNING
NET POSITION - END OF YEAR
The accompanying notes are an integral part
of these financial statements.
Business -Type
10,639
Activities
Governmental
Enterprise Funds
Activities
Total
Internal
Water and Schertz Enterprise
Service
Sewer System EMS Funds
Fund
$ 29,354,240 $
82,921
154,344
29,591,505
2,544,981
2,944,215
14,809,760
892,011
2.504.881
23,695,848
5,895,657
6,114,891 $
551,952
6,666,843
4,106,827
564,911
674,540
371,259
329.218
6,046,755
620,088
35,469,131 $
82,921
706,296
36,258,348
6,651,808
3,509,126
15,484,300
1,263,270
2.834.099
29,742,603
6,515,745
420,916
10,639
431,555
272,118
-
272,118
( 653,371)
( 4,541) (
657,912)
39,663
6,098
45,761
5,935,320
626,186
6,561,506
292,408
-
292,408
6,227,728
626,186
6,853,914
113,855,225
902,496
114,757,721
$ 120,082,953
$ 1,528,682 $
121,611,635 $
25
3,367,441
3,367,441
3,367,441
CITY OF SCHERTZ, TEXAS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers and users
Cash received from interfund services
Cash paid to employees for services
Cash paid to suppliers for goods and services
Net Cash Provided By operating Activities
CASH FLOWS FROM CAPITAL & RELATED FINANCING
ACTIVITIES
Acquisition and construction of capital assets
Interest paid on long -term debt
Principal paid on long -term debt
Net Cash Used in Capital and Related
Financing Activities
( 8,300,305) ( 84,138) ( 8,384,443)
( 394,102) 5,879 ( 388,223)
( 1,895,000) ( 360,133) ( 2,255,133)
( 10,589,407) ( 438,392) ( 11,027,799)
CASH FLOWS FROM INVESTING ACTIVITIES
Sale (purchase) of investments 27,577,692 616,919 28,194,611
Payments from leases 272,118 - 272,118
Interest and investment earnings 420,916 10,639 431,555
Net Cash Provided By (Used in) Investing Activities 28,270,726 627,558 28,898,284
Net (Decrease) Increase in Cash and Cash Equivalents
Cash and cash equivalents at beginning of year:
Cash and cash equivalents
Restricted cash and cash equivalents
Cash and cash equivalents at end of year
Cash and cash equivalents
Restricted cash and cash equivalents
The accompanying notes are an integral part
of these financial statements.
23,779,072 1,291,513 25,070,585
1,955,132 106,347 2,061,479
3,457,678 - 3,457,678
5,412,810 106,347 5,519,157
11,686,996 1,397,860 13,084,856
17,504,886 - 17,504,886
$ 29,191,882 $ 1,397,860 $ 30,589,742 $
26
Business -Type
Activities
Governmental
Enterprise Funds
Activities
Water and
Schertz
Total
Internal
Sewer System
EMS
Enterprise
Service Fund
$ 29,475,501
$ 7,028,440
$ 36,503,941
$ -
-
-
-
3,367,441
( 2,256,072)
( 4,301,834)
( 6,557,906)
( 3,367,441)
( 21,121,676)
( 1,624,259)
( 22,745,935)
-
6,097,753
1,102,347
7,200,100
-
CASH FLOWS FROM CAPITAL & RELATED FINANCING
ACTIVITIES
Acquisition and construction of capital assets
Interest paid on long -term debt
Principal paid on long -term debt
Net Cash Used in Capital and Related
Financing Activities
( 8,300,305) ( 84,138) ( 8,384,443)
( 394,102) 5,879 ( 388,223)
( 1,895,000) ( 360,133) ( 2,255,133)
( 10,589,407) ( 438,392) ( 11,027,799)
CASH FLOWS FROM INVESTING ACTIVITIES
Sale (purchase) of investments 27,577,692 616,919 28,194,611
Payments from leases 272,118 - 272,118
Interest and investment earnings 420,916 10,639 431,555
Net Cash Provided By (Used in) Investing Activities 28,270,726 627,558 28,898,284
Net (Decrease) Increase in Cash and Cash Equivalents
Cash and cash equivalents at beginning of year:
Cash and cash equivalents
Restricted cash and cash equivalents
Cash and cash equivalents at end of year
Cash and cash equivalents
Restricted cash and cash equivalents
The accompanying notes are an integral part
of these financial statements.
23,779,072 1,291,513 25,070,585
1,955,132 106,347 2,061,479
3,457,678 - 3,457,678
5,412,810 106,347 5,519,157
11,686,996 1,397,860 13,084,856
17,504,886 - 17,504,886
$ 29,191,882 $ 1,397,860 $ 30,589,742 $
26
CITY OF SCHERTZ, TEXAS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2020
Net cash provided by operating activities
SCHEDULE OF NON -CASH CAPITAL ACTIVITIES
Developer contributions of capital assets
$ 6,097,753 $ 1,102,347 $___7,200,100 $
292,408
The accompanying notes are an integral part
of these financial statements. 27
292,408
Business -Type
Activities
Governmental
Enterprise Funds
Activities
Water and
Schertz
Total Internal
Sewer System
EMS
Enterprise Service Fund
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED BY OPERATING ACTIVITIES
Operating income (loss)
$
5,895,657
$ 620,088
$ 6,515,745 $ -
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities:
Depreciation
2,504,881
329,218
2,834,099 -
Change in investment in joint venture
(
2,886,268)
-
( 2,886,268) -
Decrease (increase) in accounts receivable
(
57,065)
362,724
305,659 -
Decrease (increase) in inventory
(
27,702)
( 62,059)
( 89,761) -
Decrease (increase) in prepaids
-
( 2,311)
( 2,311) -
Increase (decrease) in deferred pension outflows
166,030
392,631
558,661 -
Increase (decrease) in deferred OPEB outflows
(
57,969)
( 18,764)
( 76,733) -
Increase (decrease) in accounts payable
438,280
50,821
489,101 -
Increase (decrease) in accrued liabilities
31,875
-
31,875 -
Increase (decrease) in customer deposits
(
72,589)
( 1,135)
( 73,724) -
Increase (decrease) in unearned revenue
13,650
8
13,658 -
Increase (decrease) in compensated absences
6,329
( 62,230)
( 55,901) -
Increase (decrease) in net pension liability
(
178,259)
( 742,911)
( 921,170) -
Increase (decrease) in deferred OPEB inflows
46,950
38,133
85,083 -
Increase (decrease) in deferred pension inflows
131,184
302,398
433,582 -
Increase (decrease) in total OPEB liability
142,769
( 104,264)
38,505 -
Net cash provided by operating activities
SCHEDULE OF NON -CASH CAPITAL ACTIVITIES
Developer contributions of capital assets
$ 6,097,753 $ 1,102,347 $___7,200,100 $
292,408
The accompanying notes are an integral part
of these financial statements. 27
292,408
CITY OF SCHERTZ, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Schertz is a municipal corporation governed by an elected mayor and five - member council. The financial
statements of the City have been prepared in conformity with generally accepted accounting principles (GAAP) as
applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard
setting body for establishing governmental accounting and financial reporting principles. The more significant of the
City's accounting policies are described below:
A. Reporting Entity
Component Units - As required by generally accepted accounting principles, these financial statements
present the government and its component units, entities for which the government is considered to be
financially accountable. Blended component units, although legally separate entities, are, in substance, part
of the government's operations; thus, data from these units are be combined with data of the primary
government. Discretely presented component units, on the other hand, are reported in a separate column in
the government -wide financial statements to emphasize it is legally separate from the government. The City
reports the following component unit:
Schertz Economic Development Corporation - The Corporation was organized for the purpose of promoting
economic development in order to eliminate unemployment and underemployment and to promote and
encourage employment and public welfare of, for, and on behalf of the City. The board of directors consists
of seven (7) members appointed by the city council. The City is financially accountable for the Corporation
because the city council approves the Corporation's budget and appoints all board members. For financial
reporting purposes, the SEDC is reported as a blended component unit due to the City having operational
responsibility for the component unit, and that any debt issued by SEDC would be expected to be paid using
City resources. Thus, SEDC is presented as a special revenue fund within the City's financial statements.
Complete financial statements for the Schertz Economic Development Corporation may be obtained from
City Hall.
Joint Ventures - A joint venture is a legally separate entity that results from a contractual arrangement and
that is owned, operated, or governed by two or more participating governments. The following entities meet
the criteria as joint ventures. Separate financial statements for these entities may be obtained at City Hall.
Schertz /Seguin Local Government Corporation - is a public, nonprofit corporation organized to aid, assist,
and act on behalf of the cities of Schertz and Seguin in acquiring, constructing, maintaining, and operating a
water utility system. The participating governments have an ongoing financial responsibility to fund the
operation of the corporation through either purchase of services or by subsidizing the operations.
Cibolo Valley Local Government Corporation - is a public, nonprofit corporation organized July 28, 2011 to
aid, assist, and act on behalf of the cities of Cibolo, Converse and Schertz in acquiring, constructing,
maintaining, and operating a water utility system. The participating governments have an ongoing financial
responsibility to fund the operation of the corporation through either purchase of services or by subsidizing
the operations.
B. Government -Wide and Fund Financial Statements
The government -wide financial statements (i.e., the statement of net position and the statement of
activities) report information on all of the activities of the primary government and its component units. For
the most part, the effect of interfund activity has been removed from these statements. Governmental
activities, which normally are supported by taxes and intergovernmental revenues, are reported separately
from business -type activities, which rely to a significant extent on fees and charges for support.
28
The statement of activities demonstrates the degree to which the direct expenses of a given function or
segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific
function or segment. Program revenues include 1) charges of customers or applicants who purchase, use, or
directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants
and contributions that are restricted to meeting the operational or capital requirements of a particular
function or segment. Taxes and other items not properly included among program revenues are reported
instead as general revenues.
Separate financial statements are provided for governmental funds and proprietary funds. Major individual
governmental funds and major individual enterprise funds are reported as separate columns in the fund
financial statements.
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government -wide financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded
when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash
flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar
items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been
met.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collectible within the
current period or soon thereafter to pay liabilities of the current period. For this purpose, the City considers
revenues to be available if they are collected within 60 days of the end of the current fiscal period.
Nonexchange revenues that are measurable but not available are recorded as unavailable revenue (a
deferred inflow of resources). These revenues are generally property taxes and warrants outstanding.
Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt
service expenditures, as well as expenditures related to compensated absences and claims and judgments,
are recorded only when payment is due.
Exchange revenues (payments for services) received in advance of the service being provided are recorded
as unearned revenue.
The City reports the following major governmental funds:
The General Fund is the City's primary operating fund which accounts for all financial resources of the
general government, except those required to be accounted for in another fund.
The Capital Projects Fund accounts for the acquisition and construction of major capital facilities
financed from bond proceeds, grants, and transfers from other funds.
The Debt Service Fund accounts for the resources accumulated and payments made for principal and
interest on long -term general obligation debt of governmental funds.
Economic Development Corporation collects sales taxes to support business development and
expansion within the City.
The City reports the following major enterprise funds:
The Water and Sewer System Fund accounts for the water and sewer services provided to the
citizens through user charges.
The EMS Fund accounts for the emergency medical services provided to the citizens of the City and
other participating governments through user charges.
Additionally, the City reports the following fund types:
Internal Service Fund accounts for the City's group medical insurance program.
As a general rule, the effect of interfund activity has been eliminated from the government -wide financial
statements. Exceptions to this are charges between the City's general government function and various
other functions of the City. Eliminations of these charges would distort the direct costs and program
revenues reported for the various functions concerned.
Amounts reported as program revenues include 1) charges to customers or applications for goods, services,
or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions.
General revenues include all taxes and investment earnings.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues
and expenses generally result from providing services and producing and delivering goods in connection with
a proprietary fund's principal ongoing operations. The principal operating revenues of the water and sewer
enterprise fund and the EMS enterprise fund are charges to customers for sales and services. Operating
expenses for enterprise funds include the cost of sales and services, administrative expenses, and
depreciation on capital assets. All revenues and expenses not meeting this definition are reported as
nonoperating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted
resources first, then unrestricted resources as they are needed.
D. Cash and Cash Eauivalents
The City's cash and cash equivalents are considered to be cash on hand and demand deposits. Cash is
reported as restricted when it has restrictions on its use narrower than the purpose of the fund in which it is
reported. This can result in differences in presentation between fund statements and government -wide
statements.
For purposes of the statement of cash flows, the City considers cash and other investments with maturities
of three months or less from the date of purchase to be cash and cash equivalents.
E. Investments
The City is authorized to invest in (1) obligations of the United States or its agencies and instrumentalities;
(2) direct obligations of the State of Texas or its agencies; (3) other obligations, the principal of and interest
on which are unconditionally guaranteed or insured by the State of Texas of the United States; (4)
obligations of states, agencies, counties, cities, and other political subdivisions of any state having been
rated of not less than "AA" or its equivalent; (5) certificates of deposit issued by state and national banks
domiciled in Texas that are guaranteed or insured by the Federal Deposit Insurance Corporation (FDIC) or its
successor, or secured by obligations mentioned above; and (6) fully collateralized direct repurchase
agreements having a defined termination date. In addition, the City is authorized to invest in local
government investment pools. The investment pools operate in accordance with appropriate state laws and
regulations and have regulatory oversight from the Texas Public Funds Investment Act Sec. 2256.0016.
Investments for the City are reported at fair value, except for the position in investment pools, which are
reported at net asset value per share (which approximates fair value) even though it is calculated using the
amortized cost method.
The City categorized its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. The fair value hierarchy, which has three levels, is based on the valuation
inputs used to measure an asset's fair value: Level 1 inputs are quotes prices in active markets for identical
assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable
inputs.
F. Receivables and Pavables
Activities between the funds that are representative of inter -fund loans outstanding at the end of the fiscal
year are referred to as due to /from other funds. Any residual balances outstanding between the
governmental activities and business -type activities are reported in the government -wide financial
statements as "internal balances ".
Accounts receivable are reported net of allowances for uncollectible accounts. The allowance account
represents management's estimate of uncollectible accounts based upon experience and historical trends.
30
Property taxes for the City are levied each October 1 on the taxable value as of the preceding January 1, the
date a lien attaches, for all taxable real and personal property located in the City. Taxes are due by January
31 following the October 1 assessment date and become delinquent on February 1, at which time they begin
accruing penalty and interest. The enforceable legal claim date for property taxes is the assessment date;
therefore, the City did not record a receivable for accrual of future taxes at year end. Accordingly, no current
taxes receivable are reported. Delinquent taxes have been reported in the financial statements net of the
allowance for uncollectible taxes. Tax revenues are recognized as they become available. Accordingly, an
amount equal to taxes not yet available has been reported as unavailable revenue (a deferred inflow of
resources) at the government fund level.
G. Inventories and Prepaid Items
All inventories are valued at cost using the first -in /first -out (FIFO) method. Inventories of governmental
funds are recorded as expenditures when consumed rather than when purchased.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items in both governmental -wide and fund financial statements and in the fund financial statements
are offset by a nonspendable fund balance which indicates they do not represent "available spendable
resources ".
H. Restricted Assets
Certain proceeds from bonds, resources set aside for their repayment, and other restrictive agreements are
classified as restricted assets on the balance sheet because they are maintained in separate bank accounts
and their use is limited by applicable bond covenants and /or contractual arrangements.
I. Capital Assets
Capital assets, which include land, buildings and improvements, machinery, equipment, vehicles, and
infrastructure assets (i.e., roads, bridges, sidewalks, and similar items), are reported in the applicable
governmental or business -type activities columns in the government -wide financial statements. Capital
assets are defined by the City as assets with an initial, individual cost of more than $5,000 and an estimated
useful life in excess of one year. When capital assets are purchased, they are capitalized and depreciated in
the government -wide financial statements and the proprietary fund statements. Capital assets are recorded
as expenditures of the current period in the governmental fund financial statements.
Capital assets are valued at cost where historical records are available and at an estimated cost where no
records exist. Donated capital assets, donated works of art and similar items received as part of a service
concession arrangement are reported at acquisition value, rather than fair value.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend
asset lives are not capitalized. Improvements to capital assets that materially extend the life of the asset or
add to the value are capitalized. Major outlays for capital assets and improvements are capitalized as
projects are constructed. Interest incurred during construction will not be capitalized in the governmental
activities on the government -wide financial statements; however, capitalization of interest is required for
business -type activities. There was no capitalized interest during the current fiscal year.
Capital assets are depreciated over their useful lives on a straight -line basis as follows:
Use Lives
Assets (Years)
Buildings and improvements 10- 50
Machinery, equipment, and vehicles 2 - 20
Infrastructure 15 - 30
31
J. Deferred Inflows/ Outflows of Resources
In addition to assets, the statement of financial position and /or balance sheet will sometimes report a
separate section for deferred outflows of resources. This separate financial statement element, deferred
outflows of resources, represents a consumption of net position that applies to a future period(s) and so
will not be recognized as an outflow of resources (expense /expenditure) until then. The City has the
following items that qualify for reporting in this category.
• Deferred charges on refunding - A deferred charge on refunding results from the difference in the
carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over
the shorter of the life of the refunded or refunding debt.
• Pension and OPEB contributions after measurement date - These contributions are deferred and
recognized in the following fiscal year.
• Difference in expected and actual pension and OPEB experience - This difference is deferred and
recognized over the estimated average remaining lives of all members determined as of the
measurement date.
• Changes in actuarial assumptions and other inputs - This difference is deferred and recognized over the
estimated average remaining lives of all members determined as of the measurement date.
In addition to liabilities, the statement of financial position and /or balance sheet will sometimes report a
separate section for deferred inflows of resources. This separate financial statement element, deferred
inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will
not be recognized as an inflow of resources (revenue) until that time. The City has the following types of
items that qualify for reporting in this category.
• Unavailable revenue is reported only in the governmental funds balance sheet. These amounts are
deferred and recognized as an inflow of resources in the period that the amounts become available.
• Difference in projected and actual earnings on pension assets - This difference is deferred and amortized
over a closed five -year period.
• Difference in expected and actual pension and OPEB experience - This difference is deferred and
recognized over the estimated average remaining lives of all members determined as of the
measurement date.
• Changes in actuarial assumptions and other inputs - This difference is deferred and recognized over the
estimated average remaining lives of all members determined as of the measurement date.
K. Compensated Absences
It is the City's policy to permit employees to accumulate earned but unused vacation and compensatory time
benefits. There is no liability for unpaid accumulated sick leave since the City does not have a policy to pay
any amounts when employees separate from service with the City. All vacation and compensatory time pay
is accrued when incurred in the government -wide and proprietary fund financial statements. A liability for
these amounts is reported in governmental funds only if they have matured, for example, as a result of
employee resignations and retirements. The general fund, water and sewer fund and the EMS fund are used
to liquidate compensated absences.
L. Pensions
The net pension liability, deferred inflows, and outflows of resources related to pensions, and pension
expense, information about the fiduciary net position of the Texas Municipal Retirement System (TMRS),
and additions to and deductions from TMRS's fiduciary net position have been determined on the same basis
as they are reported by TMRS. For this purpose, benefit payments (including refunds of employee
contributions) are recognized when due and payable in accordance with the benefit terms. Investments are
reported at fair value.
32
M. Other Post - Employment Benefits (OPEB)
Supplemental Death Benefits Fund. For purposes of measuring the total Texas Municipal Retirement
System Supplemental Death Benefit Fund (TMRS SDBF) OPEB liability, related deferred outflows and
inflows of resources, and expense, City specific information about its total TMRS SDBF liability and
additions to /deductions from the City's total TMRS SDBF liability have been determined on the same basis
as they are reported by TMRS. The TMRS SDBF expense and deferred (inflows) /outflows of resources
related to TMRS SDBF, primarily result from changes in the components of the total TMRS SDBF liability.
Most changes in the total TMRS SDBF liability will be included in TMRS SDBF expense in the period of the
change. For example, changes in the total TMRS SDBF liability resulting from current - period service cost,
interest on the TOL, and changes of benefit terms are required to be included in TMRS SDBF expense
immediately. Changes in the total TMRS SDBF liability that have not been included in TMRS SDBF expense
are required to be reported as deferred outflows of resources or deferred inflows of resources related to
TMRS SDBF.
Retiree Health Insurance. For purposes of measuring the total OPEB liability, OPEB related deferred
outflows and inflows of resources, and OPEB expense, benefit payments and refunds are recognized when
due and payable in accordance with the benefit terms. Contributions are not required but are measured as
payments by the City for benefits due and payable that are not reimbursed by plan assets. Information
regarding the City's total OPEB liability is obtained from a report prepared by a consulting actuary, Gabriel
Roeder Smith & Company.
N. Long -Term Obligations
In the government -wide financial statements, and proprietary fund types in the fund financial statements,
long -term debt and other long -term obligations are reported as liabilities in the applicable governmental
activities, business -type activities, or proprietary fund type statement of net position. Bond premiums,
discounts, and losses on defeasance are amortized over the life of the bonds using the straight -line method.
Bonds payable are reported net of the applicable bond premium or discount. Losses on defeasance are
reported as deferred outflows of resources. Bond issuance costs are expensed as incurred.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well
as bond issuance costs, during the current period. The face amount of debt issued is reported as other
financing sources. Premiums received on debt issuances are reported as other financing sources while
discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld
from the actual debt proceeds received, are reported as debt service expenditures.
O. Fund Balance
Fund balances in governmental funds are classified as follows:
Nonspendable - Represents amounts that cannot be spent because they are either not in spendable form
(such as inventory or prepaid items) or legally required to remain intact.
Restricted - Represents amounts that are constrained by external parties, constitutional provisions or
enabling legislation.
Committed - Represents amounts that can only be used for a specific purpose because of a formal action
by the government's highest level of decision- making authority: an ordinance adopted by City Council
prior to the end of the fiscal year. Once adopted, the limitation imposed by the ordinance remains in
place until a similar action is taken (the adoption of another ordinance) to remove or revise the
limitation.
Assigned - Represents amounts which the City intends to use for a specific purpose but do not meet the
criteria of restricted or committed. The City Council may make assignments through formal
documentation in the minutes. The City Council authorized (by way of policy) the City Manager to also
make assignments. The City Manager's assignments do not require formal action; however, the City
Manager has not assigned any funds at this time.
Unassigned - Represents the residual balance that may be spent on any other purpose of the City. Only
the General Fund reports positive unassigned fund balances; if another fund were to have unassigned
fund balance, it would be in the event of a deficit.
33
When an expenditure is incurred for a purpose in which multiple classifications are available, the City
considers restricted balances spent first, committed second, and assigned third.
P. Net Position
Net position represents the difference between assets plus deferred outflows of resources less liabilities and
deferred inflows of resources. Net investment in capital assets consists of capital assets, net of accumulated
depreciation, reduced by the outstanding balances of any borrowing used for the acquisition, construction
or improvements of those assets, and adding back unspent proceeds. Net position is reported as restricted
when there are limitations imposed by creditors, grantors, or laws or regulations of other governments.
Q. Estimates
The preparation of financial statements, in conformity with generally accepted accounting principles,
requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosures of contingent liabilities at the date of the financial statements and the reported
amounts of revenue and expenses during the reporting period. Actual amounts could differ from those
estimates.
R. Budgetary Information
Annual budgets are adopted on a basis consistent with generally accepted accounting principles for all
governmental funds except the library grant special revenue fund, police department forfeiture special
revenue fund and the capital projects fund, which adopts project - length budgets.
S. Reclassifications
Certain reclassifications have been made in the presentation of the September 30, 2020 financial
statements. All comparative information for prior periods has been reclassified to match the new
presentation. The changes in presentation had no impact on the changes in net position or fund balance.
II. DETAILED NOTES ON ALL FUNDS AND ACTIVITIES
A. Cash, Cash Equivalents and Investments
As of September 30, 2020, the City had the following cash, cash equivalents and investments:
LOGIC, Lone Star Investment Pool and Texas CLASS are recorded as cash equivalents in the financial
statements. All of the pools have redemption notice periods of one day and may redeem daily. The
investment pools' authorities may only impose restrictions on redemptions in the event of a general
suspension of trading on major securities markets, general banking moratorium or national state of
emergency that affects the pools' liquidity.
Interest Rate Risk. As a means of limiting its exposure to fair value losses arising from rising interest rates,
the City's investment policy limits the City's investment portfolio to highly liquid investments to meet
unanticipated cash requirements, and /or to redeploy cash into other investments expected to outperform
current holdings.
34
Reported
Weighted Average
Value
Maturity (days)
Investment type:
LOGIC
$ 16,517,388
52
Lone Star Investment Pool
26,805,191
40
Texas CLASS
28,316,948
56
Certificates of Deposit
4,352,113
111
U.S. Agency Securities
3,297,212
389
Subtotal
79,288,852
Plus: depository and petty cash
8,822,544
Total cash and investments
$_88 111 396
LOGIC, Lone Star Investment Pool and Texas CLASS are recorded as cash equivalents in the financial
statements. All of the pools have redemption notice periods of one day and may redeem daily. The
investment pools' authorities may only impose restrictions on redemptions in the event of a general
suspension of trading on major securities markets, general banking moratorium or national state of
emergency that affects the pools' liquidity.
Interest Rate Risk. As a means of limiting its exposure to fair value losses arising from rising interest rates,
the City's investment policy limits the City's investment portfolio to highly liquid investments to meet
unanticipated cash requirements, and /or to redeploy cash into other investments expected to outperform
current holdings.
34
Credit Risk. State law limits investments in certificates of deposit to guaranteed or insured by the Federal
Deposit Insurance Corporation, or its successor or the National Credit Union Share Insurance Fund, or its
successor and investment pools continuously rated no lower than AAA or an equivalent rating by at least
one nationally recognized rating service. The City's investment policy does not further limit its investment
choices. As of September 30, 2020, the City's investments in the pooled investment funds were rated
AAAm by Standard & Poor's. The City has also invested in debt securities provided by the Federal Home
Loan Bank, Federal National Mortgage Association, Federal Home Loan Mortgage Corporation, Federal Farm
Credit Banks, and U.S Treasury Notes. As of September 30, 2020, the City's investments in debt securities
were rated BBB+ by Standard & Poor's.
Custodial Credit Risk - Deposits. In the case of deposits, this is the risk that in the event of a bank failure,
the government's deposits may not be returned. As of September 30, 2020, the City's cash and cash
equivalents (including certificates of deposit, and component unit holdings) were fully collateralized by the
City's depository by a combination of pledged collateral and FDIC insurance. All collateral is held in the
City's name.
Custodial Credit Risk - Investments. For an investment, this is the risk that, in the event of the failure of
the counterparty, the government will not be able to recover the value of its investment or collateral
securities that are in the possession of an outside party. All of the government securities owned by the City
are held by its agent in the City's name.
Restricted Cash - Cash is restricted in the Proprietary fund for construction projects, impact fees and
customer deposits.
B. Property Taxes
Taxes are levied on and payable as of October 1. The City has contracted with the Guadalupe County Tax
Assessor - Collector to collect taxes on its behalf. Current taxes become delinquent February 1. Current year
delinquent taxes not paid by July 1 are turned over to attorneys for collection action. The total taxable
value as of October 1, 2019, upon which the fiscal 2020 levy was based, was $3,794,711,341 (i.e., market
value less exemptions). The estimated market value was $5,135,969,482, making the taxable value 73.9%
of the estimated market value.
The City is permitted by the Constitution of the State of Texas to levy taxes up to $2.50 per $100 of
taxable assessed valuation for all governmental purposes. Pursuant to a decision of the Attorney General of
the State of Texas, up to $1.50 per $100 of assessed valuation may be used for the payment of long -term
debt. The combined tax rate to finance general governmental services, including the payment of principal
and interest on long -term debt for the year ended September 30, 2020, was $0.5087 per $100 of assessed
value, which means that the City has a tax margin of $1.9913 for each $100 value and could increase its
annual tax levy by approximately $75,564,087 based upon the present assessed valuation before the limit
is reached.
However, the City may not adopt a tax rate that exceeds the tax rate calculated in accordance with the
Texas Property Tax Code without holding a public hearing. The Property Tax Code subjects an increase in
the effective tax rate to a referendum election, if petitioned by registered voters, when the effective tax
rate increase is more than eight percent (8 %) of the previous year's effective tax rate.
Property taxes are recorded as receivables and unearned revenues at the time the taxes are assessed. In
governmental funds, revenues are recognized as the related ad valorem taxes are collected. Additional
amounts estimated to be collectible in the time to be a resource for payment of obligations incurred during
the fiscal year and therefore susceptible to accrual in accordance with generally accepted accounting
principles have been recognized as revenue. In the government -wide financial statements, the entire levy
is recognized as revenue, net of estimated uncollectible amounts (if any), at the levy date.
C. Receivables
Receivables as September 30, 2020 for the government's individual major funds and nonmajor funds in the
aggregate, including the applicable allowances for uncollectible accounts, are as follows:
D. Deferred Inflows and Outflows of Resources
Governmental funds report unavailable revenue in connection with receivables for revenue that is not
considered to be available to liquidate liabilities of the current period. At the end of the current fiscal year,
the various components of unavailable revenue and unavailable revenue reported in the governmental funds
were as follows:
Unavailable
General Fund
Grants $ 1,526,256
Delinquent property taxes receivable 240,847
Court fines 1,578,418
Total General Fund 3,345,521
Debt Service Fund
Delinquent property taxes receivable 120,816
Total Debt Service Fund 120,816
Total Governmental Funds $ 3,466,337
36
Governmental Activities
Business -type
Activities
General
Economic
Debt
Nonmajor
Water and
Schertz
Fund
Development
Service
Funds
Sewer Fund
EMS
Receivables:
Property taxes
$ 256,219
$ -
$ 128,527
$ -
$ -
$ -
Sales tax
1,637,634
818,817
-
-
-
-
Occupancy taxes
-
-
-
31,525
-
-
Franchise taxes
493,400
-
-
-
-
-
Customers
2,236
-
-
-
4,183,673
4,850,568
Court fines
3,878,178
-
-
-
-
-
Grants
1,500,854
-
-
-
-
-
Other
328,344
7,949
-
-
-
112,189
Gross receivables
8,096,865
826,766
128,527
31,525
4,183,673
4,962,757
Less: allowance for
uncollectible accounts
( 2,322,535)
-
7,711)
-
( 35,029)
( 2,477,147)
Net receivables
$ 5,774,330
$ 826,766
$ 120,816
$ 31,525
$ 4,148,644
$_2,485 610
D. Deferred Inflows and Outflows of Resources
Governmental funds report unavailable revenue in connection with receivables for revenue that is not
considered to be available to liquidate liabilities of the current period. At the end of the current fiscal year,
the various components of unavailable revenue and unavailable revenue reported in the governmental funds
were as follows:
Unavailable
General Fund
Grants $ 1,526,256
Delinquent property taxes receivable 240,847
Court fines 1,578,418
Total General Fund 3,345,521
Debt Service Fund
Delinquent property taxes receivable 120,816
Total Debt Service Fund 120,816
Total Governmental Funds $ 3,466,337
36
Additionally, the proprietary funds and governmental activities statements of net position report various
deferred outflows and inflows of resources, primarily due to pensions and OPEB, that are summarized by
column. The following table presents the disaggregated amounts.
Deferred outflows:
Charge on refunding
Related to pensions
Related to OPEB - SDBF
Related to OPEB - Retiree
Health Plan
Total deferred outflow
Deferred inflows:
Service concession arrangement
Related to pensions
Related to OPEB - SDBF
Related to OPEB - Retiree
Health plan
Total deferred inflow
E. Interfund Balances and Transfers
Business -type Activities
Governmental Water/
Activities Sewer EMS Totals
$ 591,766 $ 40,743 $ - $ 632,509
2,210,807 235,622 396,768 2,843,197
176,022 17,839 32,554 226,415
288,945 28,962 53,774 371,681
$ 3,267,540 $ 323,166 $ 483,096 $ 4,073,802
$ 314,723 $ - $ - 314,723
1,531,010 133,120 306,204 1,970,334
100,508 10,039 18,741 129,288
289,682 28,533 54,437 372,652
$ 2,235,923 $ 171,692 $ 379,382 $ 2,786,997
The composition of interfund balances as of September 30, 2020 is as follows:
Due From Due To Amount Purpose
EMS General $ 16,139 Short -term pool cash loan
The following schedule briefly summarizes the City's transfer activity for the year ending September 30,
2020:
Transfer From Transfer To Amount Purpose
General Nonmajor governmental $ 169 Suplement funds sources
General Capital Projects 4,000,000 Funding for various capital projects
EDC Capital Projects 500,000 Funding for various capital projects
F. Capital Assets
Capital asset activity for the year ended September 30, 2020 was as follows:
Governmental activities:
Capital assets not being depreciated:
Land
Construction in progress
Total capital assets not
being depreciated
Capital assets being depreciated:
Buildings and improvements
Machinery, equipment, and vehicles
Street and infrastructure
Total assets being depreciated
Less accumulated depreciation for:
Buildings and improvements
Machinery, equipment, and vehicles
Street and infrastructure
Total accumulated depreciation
Total capital assets being
depreciated, net
Governmental activities capital
assets, net
Beginning Reclassifications / Ending
Balance Additions Retirements Balance
$ 8,073,199 $ 1,000 $ - $ 8,074,199
21,045,668 3,864,741 ( 83,499) 24,826,910
29,118,867 3,865,741 ( 83,499) 32,901,109
46,367,441
-
( 1,919,692)
44,447,749
12,958,097
2,496,947
( 902,628)
14,552,416
117,414,346
531,096
2,000,000
119,945,442
176,739,884
3,028,043
( 822,320)
178,945,607
( 15,113,305)
( 1,569,679)
( 140,652)
( 16,823,636)
( 7,142,846)
( 1,177,719)
889,747
( 7,430,818)
( 39,802,303)
( 3,865,413)
155,384
( 43,512,332)
( 62,058,454)
( 6,612,811)
904,479
( 67,766,786)
114,681,430
( 3,584,768)
82,159
111,178,821
$ 143,800,297 $ 280,973 $( 1,340) $ 144,079,930
37
Depreciation expense was charged to functions /programs of the primary government as follows:
Governmental activities:
Beginning
2021
Reclassifications /
Ending
685,676
Balance
Additions
Retirements
Balance
Business -type activities:
3,902,377
Parks and recreation
960.602
893,563
Capital assets, not being depreciated:
42,377
Administration
Land
$ 1,696,942
$ 147,546
$ -
$ 1,844,488
Water rights
70,245
-
-
70,245
Construction in progress
9,248,439
8,017,834
-
17,266,273
Total capital assets, not being
Total Depreciation
$
9,446,910
depreciated
11,015,626
8,165,380
-
19,181,006
Capital assets being depreciated:
Buildings and improvements
5,489,184
-
( 1,853,652)
3,635,532
Machinery, equipment, and vehicle<
6,007,550
237,865
( 269,375)
5,976,040
Infrastructure
100,295,885
292,408
-
100,588,293
Total assets being
depreciated
111,792,619
530,273
( 2,123,027)
110,199,865
Less accumulated depreciation for:
Buildings and improvements
( 2,696,375)
( 152,395)
1,880,059
( 968,711)
Machinery, equipment, and vehicleE
( 5,352,311)
( 622,266)
215,683
( 5,758,894)
Infrastructure
( 27,950,003)
( 2,059,438)
-
( 30,009,441)
Total accumulated depreciation
( 35,998,689)
( 2,834,099)
2,095,742
( 36,737,046)
Total capital assets being
depreciated, net
75,793,930
( 2,303,826)
( 27,285)
73,462,819
Business -type activities capital
assets, net
$__86 809 556
$ 5,861,554
$( 27,285)
$ 92,643,825
Depreciation expense was charged to functions /programs of the primary government as follows:
Governmental activities:
Total
2021
General government
$
685,676
Public safety
263,221
1,081,765
Public environment
2025
3,902,377
Parks and recreation
960.602
893,563
Cultural
42,377
Administration
7,053
Total
$
6,612,811
Business -type activities:
Water and sewer system
$
2,504,881
EMS
329,218
Total
$
2,834,099
Total Depreciation
$
9,446,910
G. Operating Leases
The City has agreements with several telecommunication companies to place cellular towers on City
water towers. The following schedule represents the future minimum lease payments.
Year Ending
September 30,
Total
2021
$ 238,749
2022
250,687
2023
263,221
2024
276,382
2025
290,201
2026 -2028
960.602
$_2,279 842
38
H. Lonci -Term Debt
Changes in long -term debt for the year ending September 30, 2020 are as follows:
Bonds Payable
The City issues a variety of long -term debt instruments in order to acquire and /or construct major capital
facilities and equipment for governmental activities. These instruments include general obligation bonds,
certificates of obligation, and tax notes. These debt obligations are secured by primarily future property tax
revenues. In some cases, these bonds are also secured by a pledge of net revenues from the utility system,
emergency medical services and economic development sales taxes. However, the amount of the formal
pledge is generally limited to $1,000. Proprietary operating revenues for the year exceeded $36.3 million and
sales tax revenue was $14.4 million.
Additionally, certain obligations that were marketed as private placements have been separately identified;
however, the terms of these obligations are not significantly different than other obligations and do not have
substantive acceleration clauses. Should the City default on these bonds, any registered owner of the
obligations is entitled to seek a writ of mandamus from a court of proper jurisdiction requiring the City to
make payment.
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, 2020, the City does
not have bonds considered defeased and outstanding.
39
Beginning
Refunded/
Ending
Amount Due
Balance
Issued
Retired
Balance
Within One Year
Governmental activities:
General Obligation Bonds
$ 36,965,000
$ -
$( 2,350,000)
$ 34,615,000
$
2,350,000
Certificates of Obligation
16,235,000
-
( 1,000,000)
15,235,000
1,035,000
General Obligation Bonds -
Private Placement
11,355,000
-
( 1,350,000)
10,005,000
1,380,000
Tax Notes -
Private Placement
530,000
-
( 185,000)
345,000
190,000
Premium from Debt
2,338,297
-
( 167,916)
2,170,381
-
Capital Lease
25,699
-
( 8,565)
17,134
8,565
Compensated Absences
1,226,399
182,752
( 441,611)
967,540
193,508
Total governmental
$ 68,675,395
$ 182,752
$( 5,503,092)
$ 63,355,055
$
5,157,073
Business -type activities:
General Obligation Bonds
$ 3,215,000
$ -
$( 570,000)
$ 2,645,000
$
590,000
Certificates of Obligation
12,330,000
-
( 825,000)
11,505,000
850,000
General Obligation Bonds -
Private Placement
1,230,000
-
( 190,000)
1,040,000
200,000
Tax Notes -
Private Placement
460,000
-
( 310,000)
150,000
150,000
Unamortized Premium
871,608
-
( 42,827)
828,781
-
Capital Lease
199,421
-
( 66,953)
132,468
66,953
Compensated Absences
336,139
47,894
( 134,764)
249,269
49,854
Total business -type
$ 18,642,168
$ 47,894
$( 2,139,544)
$ 16,550,518
$
1,906,807
Bonds Payable
The City issues a variety of long -term debt instruments in order to acquire and /or construct major capital
facilities and equipment for governmental activities. These instruments include general obligation bonds,
certificates of obligation, and tax notes. These debt obligations are secured by primarily future property tax
revenues. In some cases, these bonds are also secured by a pledge of net revenues from the utility system,
emergency medical services and economic development sales taxes. However, the amount of the formal
pledge is generally limited to $1,000. Proprietary operating revenues for the year exceeded $36.3 million and
sales tax revenue was $14.4 million.
Additionally, certain obligations that were marketed as private placements have been separately identified;
however, the terms of these obligations are not significantly different than other obligations and do not have
substantive acceleration clauses. Should the City default on these bonds, any registered owner of the
obligations is entitled to seek a writ of mandamus from a court of proper jurisdiction requiring the City to
make payment.
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, 2020, the City does
not have bonds considered defeased and outstanding.
39
A summary of the terms of long -term debt outstanding at September 30, 2020, is as follows:
Governmental Activities
General Obligation Bonds
2011 Series
2012 Series
2014 Series, Refunding
2015 Series, Refunding
2016 Series
2017 Series
2018 Series, Refunding
Private Placement obligations
2007 Series GO
2011A Series GO Refunding
2018 Series GO Refunding
2015 Tax Notes
2015A Tax Notes
Certificates of Obligation
2016 Series A
2016 Series B
2017 Series
2018 Series
2019 Series
Issue
Amount Maturity Rate Balance
$ 8,250,000
2036
3.0% -6.0% $
6,320,000
7,625,000
2032
2.00%
5,085,000
8,450,000
2030
2.0% -4.0%
7,900,000
4,185,000
2031
2.0% - 3.25%
1,830,000
5,880,000
2036
2.0% -4.0%
4,830,000
3,935,000
2037
2.0% -4.0%
3,495,000
5,830,000
2033
3.125% - 5%
5,155,000
6,000,000
6,745,000
6,035,000
245,000
1,020,000
2,375,000
1,475,000
4,935,000
4,845,000
4,015,000
Total Governmental Long -Term Obligations
Issue
Business -type Activities
4.07%
General Obligation Bonds
2024
2011 Series, Refunding
$ 2,675,000
2018 Series, Refunding
2,740,000
Certificates of Obligation
2021
2013 Series
4,965,000
2017 Series
540,000
2018 Series
5,595,000
2019 Series
3,480,000
Private Placement obligations
3.0% - 3.75%
2013 Series GO Refunding
2,130,000
2015 Tax Notes
1,880,000
Total Business -Type Long -Term Obligations
40
2027
4.07%
2,590,000
2024
2.33%
2,490,000
2028
2.12%
4,925,000
2021
1.75%
40,000
2023
1.54%
305,000
2036
2.0% -4.0%
1,685,000
2036
3.0% - 3.75%
1,250,000
2037
3.0% - 3.75%
4,120,000
2038
3.0% - 5.0%
4,415,000
2039
2.5% - 5%
3.765.000
$ 60,200,000
Maturity Rate Balance
2021
2.0% - 3.0% $
240,000
2026
3.125% - 5%
2,405,000
2033
2.0% -4.0%
2,690,000
2022
3.0% - 3.75%
225,000
2028
3.0% - 5.0%
5,235,000
2039
2.5% - 5%
3,355,000
2025
2.58%
1,040,000
2021
1.75%
150,000
$ 15,340,000
Annual future debt service requirements of bonded debt as of September 30, 2020, are as follows:
Governmental activities:
General Obligation Bonds Certificates of Obligation
Year Ended
September 30, Principal Interest Total Principal Interest Total
2021
2022
2023
2024
2025
2026 -2030
2031 -2035
2036 -2040
Total
$ 2,350,000 $ 1,199,709 $ 3,549,709
2,005,000
1,119,576
3,124,576
2,090,000
1,046,890
3,136,890
2,195,000
970,158
3,165,158
2,250,000
889,602
3,139,602
13,290,000
3,108,828
16,398,828
9,000,000
889,983
9,889,983
1.435.000
30.613
1.465.613
$ 34,615,000 $ 9,255,360 $ 43,870,360
$ 1,035,000 $ 510,519 $ 1,545,519
1,070,000
472,219
1,542,219
1,120,000
432,319
1,552,319
1,010,000
391,244
1,401,244
905,000
352,719
1,257,719
3,680,000
1,329,200
5,009,200
4,115,000
706,353
4,821,353
2,300,000
109,431
2,409,431
$ 15,235,000
$ 4,304,003
$ 19,539,003
Private Placement Debt
General Obligation Bonds Tax Notes
Year Ended
September 30,
Principal
Interest
Total
Principal
Interest
Total
2021
$ 1,380,000
$ 249,534
$ 1,629,534
$ 190,000
$ 5,397 $
195,397
2022
1,595,000
210,303
1,805,303
155,000
2,387
157,387
2023
1,625,000
167,982
1,792,982
-
-
-
2024
1,640,000
124,903
1,764,903
-
-
-
2025
1,010,000
88,758
1,098,758
-
-
-
2026 -2030
2,755,000
95,698
2,850,698
-
-
-
Total
$ 10,005,000
$ 937,178
$ 10,942,178
$ 345,000
$ 7,784 $__352,784
Business -type activities:
General Obligation Bonds Certificates of Obligation
Year Ended
September 30, Principal Interest Total Principal Interest Total
2021
2022
2023
2024
2025
2026 -2030
2031 -2035
2036 -2040
Total
$ 590,000 $ 118,700 $ 708,700
370,000 93,500 463,500
390,000 74,500 464,500
410,000 54,500 464,500
435,000 33,375 468,375
450,000 11,250 461,250
$_2,645,000 $ 385,825 $ 3,030,825
$ 850,000
$ 404,675
$ 1,254,675
605,000
378,775
983,775
510,000
356,300
866,300
530,000
333,613
863,613
550,000
310,250
860,250
3,155,000
1,165,962
4,320,962
3,290,000
547,025
3,837,025
2,015,000
89,944
2,104,944
$ 11,505,000
$ 3,586,544
$ 15,091,544
Private Placement Debt
General Obligation Bonds
Tax Notes
Year Ended
September 30, Principal Interest Total Principal Interest Total
2021 $ 200,000 $ 24,252 $ 224,252 $ 150,000 $ 2,625 $ 152,625
2022 205,000 19,028 224,028 - - -
2023 205,000 13,739 218,739 - - -
2024 215,000 8,321 223,321 - - -
2025 215,000 2,774 217,774 - - -
2026 -2030 - - - - - -
Total $_1,040,000 $ 68,112 $ 1,108,112 $ 150,000 $ 2,625 $ 152,625
41
Capital Leases
The City enters into various lease agreements to finance machinery and equipment; they are classified as
capital leases due to bargain - purchase options. Therefore, capital assets and a related capital lease
obligation have been recorded at the present value of the future minimum lease payments at the inception
date. The lease obligations are secured by the purchased equipment. The assets acquired through capital
lease are reported in capital assets with the following accumulated depreciation at September 30, 2020:
Assets:
Equipment
Less: accumulated depreciation
Tota I
Future minimum lease payments are as follows:
Year Ending September 30,
Governmental Business -type
Activities Activities
$ 54,275 $ 332,967
28,433) ( 198,305)
$ 25,842 $ 134,662
Governmental Business -type
Activities Activities
2021 $ 8,565 $ 67,313
2022 8,569 65,875
Total payments 17,134 133,188
Less: amount representing interest - ( 720)
Present value of minimum lease payments $ 17,134 $ 132,468
I. Net Pension and Total OPEB Liabilities and Expenses
Amounts are aggregated into a single net pension liability and total OPEB liability, and expenses for certain
columns. Below is the detail of net pension liability and total OPEB liability and expenses for governmental
and business -type activities.
Net pension liability
Total OPEB liability:
Due within one year:
TMRS SDBF
Retiree health plan
Total due within one year
Due in within more than one year:
TMRS SDBF
Retiree health plan
Total due in more than one year
Total OPEB liability
Pension expense
OPEB expense:
TMRS SDBF
Retiree Health Plan
Total OPEB expense
Business -type Activities
Governmental Water/
Activities Sewer EMS Totals
$_12 108 954 $ 1,300,280 $ 2,162,980 $ 15,572,214
$ 3,068 $ 329 $ 548 $ 3,945
46,190 4,960 8,250 59,400
49,258 5,289 8,798 63,345
626,855 171,814 7,472 806,141
1,636,476 175,728 292,319 2,104,523
2,263,331 347,542 299,791 2,910,664
$_2,312 589 $ 352,831 $ 308,589 $ 2,974,009
Business -type Activities
Governmental Water/
Activities Sewer EMS Totals
$_2,515,909 $__270 162 $ 449,408 $ 3,235,479
$ 61,569 $ 12,184 $ 5,169 $ 78,922
156,298 33,234 10,710 200,242
$ 217,867 $ 45,418 $ 15,879 $ 279,164
11 Pi
A. Retirement Plan
Plan Description. The City of Schertz participates as one of 888 plans in the nontraditional, joint
contributory, hybrid defined benefit pension plan administered by the Texas Municipal Retirement System
(TMRS). TMRS is an agency created by the state of Texas and administered in accordance with the TMRS
Act, Subtitle G, Title 8, Texas Government Code (the TMRS Act) as an agent multiple - employer retirement
system for municipal employees in the State of Texas. The TMRS Act places the general administration and
management of the system with a six- member Board of Trustees. Although the Governor, with the advice
and consent of the Senate, appoints the Board, TMRS is not fiscally dependent on the State of Texas. TMRS's
defined benefit pension plan is a tax - qualified plan under Section 401(a) of the Internal Service Code. TMRS
issues a publicly available comprehensive annual financial report (CAFR) that can be obtained at
www.tmrs.com.
All eligible employees of the City are required to participate in TMRS.
Benefits Provided. TMRS provides retirement, disability, and death benefits. Benefit provisions are adopted
by the governing body of the City, within the options available in the state statutes governing TMRS.
At retirement, the benefit is calculated as if the sum of the employee's contributions, with interest, and the
City- financed monetary credits with interest were used to purchase an annuity. Members may choose to
receive their retirement benefit in one of seven payment options. Members may also choose to receive a
portion of their benefit as a Partial Lump Sum Distribution in an amount equal to 12, 24, or 36 monthly
payments, which cannot exceed 75% of the member's deposits and interest.
The City grants monetary credits for service rendered of a theoretical amount equal to two times what would
have been contributed by the employee, with interest. Monetary credits, also known as the matching ratio,
are 200% of the employee's accumulated contributions and are only payable in the form of an annuity.
Beginning in 2008, the City granted an annually repeating (automatic) basis monetary credit referred to as
an updated service credit (USC) which is a theoretical amount that takes into account salary increases or
plan improvements. If at any time during their career an employee earns a USC, this amount remains in
their account earning interest at 5% until retirement. At retirement, the benefit is calculated as if the sum of
the employee's accumulated contributions with interest and the employer match plus employer- financed
monetary credits, such as USC, with interest were used to purchase an annuity. Additionally, initiated in
2008, the City provided on an annually repeating (automatic) basis cost of living adjustments (COLA) for
retirees equal to a percentage of the change in the consumer price index (CPI).
At the December 31, 2019 valuation and measurement date, the following employees were covered by the
benefit terms:
Inactive employees or beneficiaries currently receiving benefits 116
Inactive employees entitled to but not yet receiving benefits 209
Active employees 344
Total 669
Contributions. The contribution rates for employees in TMRS are either 5 %, 6 %, or 7% of employee gross
earnings, and the City matching percentages are either 100 %, 150 %, or 200 %, both as adopted by the
governing body of the City. Under the state law governing TMRS, the contribution rate for each city is
determined annually by the actuary, using the Entry Age Normal (EAN) actuarial cost method. The
actuarially determined rate is the estimated amount necessary to finance the cost of benefits earned by
employees during the year, with an additional amount to finance any unfunded accrued liability.
Employees for the City were required to contribute 7% of their annual gross earnings during the fiscal year.
The contribution rates for the City were 15.92% and 16.04% in calendar years 2020 and 2019, respectively.
The City's contributions to TMRS for the year ended September 30, 2020 were $3,235,479 and were equal
to the required contributions.
43
Net Pension Liability. The City's Net Pension Liability (NPL) was measured as of December 31, 2019, and
the Total Pension Liability JPQ used to calculate the Net Pension Liability was determined by an actuarial
valuation as of that date. The net pension liability is typically liquidated through the General Fund and
Enterprise Funds.
Actuarial Assumptions
The Total Pension Liability in the December 31, 2019 actuarial valuation was determined using the following
actuarial assumptions:
Inflation 2.SU% per year
Overall payroll growth 2.75% per year
Investment rate of return 6.75% net ofpension plan investment expense,
including inflation
Salary increases are based on a service-related table. Mortality rates for active members are based on the
PUB(10) mortality tables with the Public Safety table used for males and the General Employee table used
for females. Mortality rates for healthy retirees and beneficiaries are based on the Gender-distinct 2019
Municipal Retirees of Texas mortality tables. The rates for actives, healthy retirees and beneficiaries are
projected on a fully generational basis by Scale UMP to account for future mortality improvements. For
disabled annuitants, the same mortality tables for healthy retirees is used with a 4-year set-forward for
males and a 3-year set-forward for females. In addition, a 3.596 and 3.096 minimum mortality rate will be
applied to reflect the impairment for younger members who become disabled for males and females. The
rates are projected on a fully generational basis by Scale UMP to account for future mortality improvements
subject to the floor.
The actuarial assumptions were developed primarily from the actuarial investigation of the experience of
TMRS over the four-year period from December 31, 2014 to December 31, 2010. They were adopted in
2019 and first used in the December 31, 2019 actuarial valuation. The post-retirement mortality assumption
for healthy annuitants and Annuity Purchase Rate (APRs) are based on the Mortality Experience Investigation
Study covering 2009 through 2011 and dated December 31, 2013. In conjunction with these changes first
used in the December 31, 2013 valuation, the System adopted the Entry Age Normal actuarial cost method
and a one-time change to the amortization policy. Plan assets are managed on a total return basis with an
emphasis on both capital appreciation as well as the production of income, in order to satisfy the short-term
and long-term funding needs ofTMRS.
The long-term expected rate of return on pension plan investments was determined using a building-block
method in which best estimate ranges of expected future real rates of return (expected returns, net of
pension plan investment expense and inflation) are developed for each major asset class. These ranges are
combined to produce the long-term expected rate of return by weighting the expected future real rates of
return by the target asset allocation percentage and by adding expected inflation. In determining their best
estimate of recommended investment return assumption under the various alternative asset allocation
portfolios, GRS focused on the area between (1) arithmetic mean (aggressive) without an adjustment for
time (conservative) and (2) the geometric mean (conservative) with an adjustment for time (aggressive).
44
Long'TennExpected
Real Rate ofReturn
Asset Class
Target Allocation
(Arithmetic)
Global Equity
308096
53096
Core Fixed Income
10.0096
1.2596
Non-Core Fixed Income
20.0096
4.14%
Real Estate
10.0096
3.8596
Real Return
10.0096
4.0096
Absolute Return
10.0096
3.4896
Private Equity
10.00%z
7.7596
44
Discount Rate
The discount rate used to measure the Total Pension Liability was 6.75 %. The projection of cash flows used
to determine the discount rate assumed that employee and employer contributions will be made at the rates
specified in statute. Based on that assumption, the pension plan's Fiduciary Net Position was projected to be
available to make all projected future benefit payments of current active and inactive employees. Therefore,
the long -term expected rate of return on pension plan investments was applied to all periods of projected
benefit payments to determine the Total Pension Liability.
The below schedule presents the changes in the Net Pension Liability as of December 31, 2019:
Balance at 12/31/2018
Changes for the year:
Service cost
Interest
Difference between expected
and actual experience
Change in assumptions
Contributions - employer
Contributions - employee
Net investment income
Benefit payments, including refunds
of employee contributions
Administrative expense
Other changes
Net changes
Balance at 12/31/2019
Increase (Decease
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a) (b) (a) -(b)
$ 71,981,331 $ 52,293,723 $ 19,687,608
3,421,878 - 3,421,878
4,898,478 - 4,898,478
( 108,478)
-
( 108,478)
263,015
-
263,015
-
3,163,340
( 3,163,340)
-
1,380,585
( 1,380,585)
-
8,093,416
( 8,093,416)
( 2,244,447)
( 2,244,447)
-
-
( 45,681)
45,681
-
( 1,373)
1,373
6,230,446
10,345,840
( 4,115,394)
$ 78,211,777 $_62,.639 563 $ 15,572,214
The following presents the net pension liability of the City, calculated using the discount rate of 6.75 %, as
well as what the City's net pension liability would be if it were calculated using a discount rate that is 1-
percentage point lower (5.75 %) or 1- percentage point higher (7.75%) than the current rate:
1% Decrease in 1% Increase in
Discount Rate Discount Rate Discount Rate
(5.75 %) (6.75 %) (7.75 %)
Net pension liability $ 28,805,341 $ 15,572,214 $ 4,920,053
Pension Expense and Deferred Outflows /Inflows of Resources Related to Pensions. For the year
ended September 30, 2020, the City recognized pension expense of $3,569,490. Also, as of September 30,
2020, the City reported deferred outflows of resources and deferred inflows of resources related to pensions
from the following sources:
Differences between expected and actual
economic experience
Changes in actuarial assumptions
Difference between projected and actual
investment earnings
Contributions subsequent to the measurement date
Tota I
U�
Deferred Outflows Deferred Inflows
of Resources of Resources
$ 293,422 $ 94,103
222,869
- 11876,231
2,326,906 -
$ 2,843,197 $ 1,970,334
$2,326,906 reported as deferred outflows of resources related to pensions resulting from contributions
subsequent to the measurement date will be recognized as a reduction of the net pension liability for the
year ending September 30, 2021. Other amounts reported as deferred outflows and inflows of resources
related to pensions will be recognized in pension expense as follows:
For the Year
Ended September 30,
2021 $(
373,727)
2022 (
393,997)
2023
186,999
2024 (
879,260)
2025
5,942
B. Other Post - Employment Benefits
The City participates in two defined - benefit other post - employment benefit (OPEB) plans: the Texas
Municipal Retirement System Supplemental Death Benefits Fund (TMRS SDBF), and its own single - employer
retiree health plan. Both are described in detail below.
The total OPEB liabilities of both plans are typically liquidated through the General Fund and Enterprise
Funds.
TMRS Supplemental Death Benefits Fund
Plan Description. The City voluntarily participates in a single - employer other postemployment benefit
(OPEB) plan administered by TMRS. The Plan is a group -term life insurance plan known as the Supplemental
Death Benefits Fund (SDBF). The Plan is established and administered in accordance with the TMRS Act
identically to the City's pension plan. SDBF includes coverage for both active and retired members, and
assets are commingled for the payment of such benefits. Therefore, the Plan does not qualify as an OPEB
Trust in accordance with paragraph 4 of GASB Statement No. 75.
Benefits Provided. The SDBF provides group -term life insurance to City employees who are active
members in TMRS, including or not including retirees. The City Council opted into this program via an
ordinance, and may terminate coverage under, and discontinue participation in, the SDBF by adopting an
ordinance before November 1 of any year to be effective the following January 1.
Payments from this fund are similar to group -term life insurance benefits, and are paid to the designated
beneficiaries upon the receipt of an approved application for payment. The death benefit for active
employees provides a lump -sum payment approximately equal to the employee's annual salary (calculated
based on the employee's actual earnings for the 12 -month period preceding the month of death). The
death benefit for retirees is considered an other employment benefit and is a fixed amount of $7,500.
Membership in the plan at December 31, 2019, the valuation and measurement date, consisted of:
Inactive employees or beneficiaries currently receiving benefits 90
Inactive employees entitled to but not yet receiving benefits 59
Active employees 344
Tota 1 493
Contributions. The City contributes to the SDBF at a contractually required rate as determined by an
annual actuarial valuation, which was 0.12% for 2020 and 0.12% for 2019, of which 0.02% represented
the retiree -only portion for each year, as a percentage of annual covered payroll. The rate is equal to the
cost of providing one -year term life insurance. The funding policy for the SDBF program is to assure that
adequate resources are available to meet all death benefit payments for the upcoming year; the intent is
not to prefund retiree term life insurance during employees' entire careers. The City's contributions to the
SDBF for the years ended September 30, 2020 were $4,080 representing contributions for both active and
retiree coverage, which equaled the required contributions each year.
46
Total OPEB Liability. The Total OPEB Liability in the December 31, 2019 actuarial valuation was
determined using the following actuarial assumptions and inputs:
Measurement year ended December 31,
Inflation rate
Discount rate
Actuarial cost method
Projected salary increases
Administrative expenses
Mortality Rates - Service Retirees
2019
2.50% per annum
2.75%
Entry Age Normal Method
3.50% to 11.5% including inflation
All administrative expenses are paid through the
Pension Trust and accounted for under reporting
requirements under GASB Statement No. 68.
2019 Municipal Retirees of Texas Mortality Tables.
The rates are projeted on a fully generational bases
with scale UMP.
Mortality Rates - Disabled Retirees 2019 Municipal Retirees of Texas Mortality Tables
with a 4 year set forward for males and a 3 year set -
forward for females. In addition, a 3.5% and 3%
minimum mortality rate will be applied to reflect the
impairment for younger members who become
disabled for males and females, respectively. The
rates are projected on a fully generational basis with
scale UMP to account for future mortality
improvements subject to the floor.
Changes in assumptions reflect the annual change in the municipal bond rate. The actuarial assumptions
used in the December 31, 2019 valuation were based on the results of an actuarial experience study for the
period December 31, 2014 to December 31, 2018.
Discount Rate. The SDBF program is treated as an unfunded OPEB plan because the SDBF trust covers
both actives and retirees and the assets are not segregated for these groups. As such, a single discount rate
of 3.71% was used to measure the total OPEB liability. Because the plan is essentially a "pay -as- you -go"
plan, the single discount rate is equal to the prevailing municipal bond rate. The source of the municipal
bond rate was fixed - income municipal bonds with 20 years to maturity that include only federally tax -
exempt municipal bonds as reported in Fidelity Index's "20 -year Municipal GO AA Index" as of December 31,
2019.
Discount Rate Sensitivity Analysis. The following schedule shows the impact of the total OPEB liability
if the discount rate used was 1% less than and 1% greater than the discount rate that was used (2.75%)
in measuring the total OPEB liability.
1% Decrease in
Discount Rate
(1.75 %)
Discount Rate
(2.75 %)
Total SDB OPEB Liability $ 1,012,834 $ 810,086
Cl►
1% Increase in
Discount Rate
(3.75 %)
657,204
Changes in the Total OPEB Liability. Total City's Total OPEB Liability (TOL), based on the above actuarial
factors, as of December 31, 2019, the measurement and actuarial valuation date, was calculated as follows:
Changes in assumptions and other inputs reflect a change in the discount rate from 3.71% to 2.75 %.
OPEB Expense and Deferred Inflows and Outflows of Resources Related to OPEB. For the year
ended September 30, 2020, the City recognized OPEB expense of $78,922. Also, as of September 30, 2020,
the City reported deferred outflows and inflows of resources related to the TMRS OPEB from the following
sources:
Differences between expected and
actual economic experience
Changes in actuarial assumptions
Contributions subsequent to the measurement date
Tota I
Deferred Outflows
Total OPEB
of Resources
Liability
Balance at 12/31/2018
$ 710,387
Changes for the year:
$ 90,023
Service cost
33,528
Interest
26,904
Difference between expected and actual experience
( 105,282)
Changes of assumptions or other inputs
148,494
Benefit payments, including refunds of employee contributions
( 3,945)
Net changes
99,699
Balance at 12/31/2019
$ 810,086
Changes in assumptions and other inputs reflect a change in the discount rate from 3.71% to 2.75 %.
OPEB Expense and Deferred Inflows and Outflows of Resources Related to OPEB. For the year
ended September 30, 2020, the City recognized OPEB expense of $78,922. Also, as of September 30, 2020,
the City reported deferred outflows and inflows of resources related to the TMRS OPEB from the following
sources:
Differences between expected and
actual economic experience
Changes in actuarial assumptions
Contributions subsequent to the measurement date
Tota I
Deferred Outflows
Deferred Inflows
of Resources
of Resources
2021
$ 18,490
$ 62,704
$ 90,023
160,764
39,265
2,947
-
$ 226,415
$ 129,288
$2,947 reported as deferred outflows of resources related to OPEB resulting from contributions subsequent
to the measurement date will be recognized as a reduction of the Total OPEB liability for the year ending
September 30, 2021. Other amounts reported as deferred outflows and inflows of resources related to the
TMRS OPEB will be recognized in OPEB expense in future periods as follows:
For the Year
Ended September 30,
2021
$ 18,490
2022
18,490
2023
18,490
2024
18,490
2025
13,171
Thereafter
7,049
City of Schertz Retiree Health Other Post - Employment Benefit Plan
In addition to the TMRS OPEB, The City administers a single employer defined benefit healthcare plan for
retirees, established under legal authority of the City Charter. The City is the only employer participating in
the Plan. The Plan does not issue a publicly available financial report.
48
The City provides post - employment benefits for eligible participants enrolled in City- sponsored plans. The
benefits are provided in the form of an implicit rate subsidy where the City contributes towards the retiree
health premiums before achieving Medicare eligibility. While the Plan offers retiree only rates, a very small
implicit liability still exists. Membership in the plan as of December 31, 2019, the valuation date,
consisted of:
Inactive employees or beneficiaries currently receiving benefits 8
Inactive employees entitled to but not yet receiving benefits -
Active employees 332
Total 340
Current active employees must be eligible for service retirement under the Texas Municipal Retirement
System. To attain this eligibility active employees must be at least age 60 with 5 years of service or have at
least 20 years of employment with the City. When a regular, full -time employee retires, they are eligible to
maintain their coverage in the City's group health coverage. The City does not provide an explicit subsidy for
retiree medical insurance. The liability for the City is due to the implicit rate.
The City made no direct contributions for monthly premiums. The retirees pay 102% of the monthly
premiums which range based on the type of plan from $508 for retiree only to $1,796 for a retiree and their
family.
The City's Retiree Health OPEB Liability (TOL) as of December 31, 2019, was calculated as follows:
The actuarial valuation was performed as of December 31, 2019. Changes of assumptions reflect a change in
the discount rate from 3.71% as of December 31, 2018 to 2.75% as of December 31, 2019, revised TMRS
demographic assumptions, and updates to both the health care trend and participation assumptions.
The following presents the TOL of the City, calculated using the discount rate of 2.75% as well as what the
City's TOL would be if it were calculated using a discount rate that is 1- percentage point lower (1.75%) and
1- percentage point higher (3.75 %) than the current rate:
1% Decrease in 1% Increase in
Discount Rate Discount Rate Discount Rate
(1.75 %) (2.75 %) (3.75 %)
Total OPEB liability - retiree health $ 2,371,845 $ 2,163,923 $ 1,973,066
The following presents what the total OPEB liability of the City would be if it were calculated using healthcare
cost trend rates that are 1- percentage point lower (6% decreasing to 3.5 %) or 1- percentage point higher
(8% decreasing to 5.5 %) than the current healthcare cost trends:
Current Healthcare Cost
1% Decrease Trend Rate Assumption 1% Increase
Total OPEB liability - retiree health $ 1,906,398 $ 2,163,923 $ 2,469,777
49
Total OPEB
Liability
Balance at 12/31/2018
$ 2,086,718
Changes for the year:
Service cost
125,648
Interest
78,646
Difference between expected and actual experience
( 343,086)
Changes of assumptions or other inputs
275,398
Benefit payments, including refunds of employee contributions
( 59,401)
Net changes
77,205
Balance at 12/31/2019
$ 2,163,923
The actuarial valuation was performed as of December 31, 2019. Changes of assumptions reflect a change in
the discount rate from 3.71% as of December 31, 2018 to 2.75% as of December 31, 2019, revised TMRS
demographic assumptions, and updates to both the health care trend and participation assumptions.
The following presents the TOL of the City, calculated using the discount rate of 2.75% as well as what the
City's TOL would be if it were calculated using a discount rate that is 1- percentage point lower (1.75%) and
1- percentage point higher (3.75 %) than the current rate:
1% Decrease in 1% Increase in
Discount Rate Discount Rate Discount Rate
(1.75 %) (2.75 %) (3.75 %)
Total OPEB liability - retiree health $ 2,371,845 $ 2,163,923 $ 1,973,066
The following presents what the total OPEB liability of the City would be if it were calculated using healthcare
cost trend rates that are 1- percentage point lower (6% decreasing to 3.5 %) or 1- percentage point higher
(8% decreasing to 5.5 %) than the current healthcare cost trends:
Current Healthcare Cost
1% Decrease Trend Rate Assumption 1% Increase
Total OPEB liability - retiree health $ 1,906,398 $ 2,163,923 $ 2,469,777
49
For the year ended September 30, 2020, the City recognized OPEB expense of $200,242. Also, as of
September 30, 2020, the City reported deferred outflows of resources and deferred inflows of resources
related to OPEB from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual economic experience $ 12,008 $ 307,562
Changes in actuarial assumptions 314,511 65,090
Contributions subsequent to the measurement date 45,162 -
Total $ 371,681 $ 372,652
$45,162 reported as deferred outflows of resources related to OPEB resulting from contributions subsequent
to the measurement date will be recognized as a reduction of the Total OPEB liability for the year ending
September 30, 2021. Other amounts reported as deferred outflows and inflows of resources related to the
City's Retiree Health OPEB will be recognized in OPEB expense as follows:
For the Year
Ended September 30,
2021
$( 4,051)
2022
( 4,051)
2023
( 4,051)
2024
( 4,051)
2025
( 4,051)
Thereafter
( 25,878)
C. Joint Ventures
Schertz /Seguin Local Government Corporation
The Schertz /Seguin Local Government Corporation is a public, nonprofit corporation organized to aid, assist,
and act on behalf of the cities of Schertz and Seguin in acquiring, constructing, maintaining, and operating a
water utility system. The participating governments have an ongoing financial responsibility to fund the
operation of the corporation through either purchase of services or by subsidizing the operations.
Payments to the corporation are generally for the purchase of water treatment and for covering the
Corporation's debt service requirements; they are reflected as "operating expenses" in the water and sewer
fund and totaled $6,942,912 for the year ended September 30, 2020. Separate financial statements for the
Schertz /Seguin Local Government Corporation may be obtained from the City of Seguin, 210 East Gonzales
Street, Seguin, Texas 78156.
The City of Schertz is jointly liable, together with the City of Seguin, for operating deficits and long -term
debt of the Schertz /Seguin Local Government Corporation. The Corporation had net revenue bonds
outstanding in the amount of $161,747,682 (as of September 30, 2020) to provide funds to build, improve,
extend, enlarge and repair the Corporation's utility system, fund a reserve, and pay the costs of bond
issuance. The bond resolution pledges intergovernmental contract revenues from the cities of Schertz and
Seguin (the participating governments) to bond holders. Under the intergovernmental water supply contract,
the participating governments are unconditionally obligated to pay their respective shares of annual contract
revenue bond debt service from the operation of their respective utility systems.
The organizing documents for the Corporation provide that, in the event of dissolution, the net assets of the
Corporation will be equally divided among the Cities of Schertz and Seguin. As such, the City's net
investment in the joint venture has been recorded in the Water and Sewer Fund in the amount of
$13,189,181. This amount reflects the City's portion of the net position of SSLGC as of September 30, 2019,
the most recent fiscal year for which information is available.
[
Cibolo Valley Local Government Corporation
The Cibolo Valley Local Government Corporation (CVLGC) is a public nonprofit corporation incorporated
in March 2012 to assist and act on behalf of the cities of Schertz and Cibolo to obtain additional water
sources. The participating governments have an ongoing financial responsibility to fund the operation of the
corporation through either purchase of services or by subsidizing the operations. Payments to the
corporation are generally for the purchase of wastewater treatment and for covering the Corporation's debt
service requirements; they are reflected as "operating expenses" in the water and sewer fund and totaled
$100,000 for the year ended September 30, 2020. Separate financial statements for the CVLGC may be
obtained from the City of Seguin, 210 East Gonzales Street, Seguin, Texas 78156.
The City of Schertz is jointly liable, together with the City of Cibolo, for operating deficits and long -term debt
of CVLGC. In the event of dissolution, the net assets of the Corporation will be equally divided among the
Cities of Schertz and Cibolo. As such, the City's net investment in the joint venture has been recorded in the
Water and Sewer Fund in the amount of $1,113,857 as of September 30, 2020.
D. Commitments and Contingencies
Tax Increment Financing (the "Zone ")
The City is a principal in the City of Schertz Tax Increment Reinvestment Zone #2, pursuant to Chapter 311
of the Texas Tax Code. Under the terms of the Zone agreement, the City of Schertz, Bexar County, and San
Antonio River Authority are funding infrastructure improvements through tax increment financing to the
Sedona Development Project.
At the time the Zone was created, the property tax base was "frozen" and increment taxes resulting from the
increases to property tax base are being used to finance Zone improvements. The total projected cost is a
combined figure of $45,000,000. Project costs of the developer will be funded up to 100% of the tax
increment generated by the City of Schertz, Bexar County, and San Antonio River Authority (SARA). The
City of Schertz (combined with SARA) have committed up to $32,877,000 of the total $45,000,000. The
Zone has a statutory termination date of December 31, 2027. The TIRZ has collected $2,844,145 from
taxing entities (net of administrative reimbursements) and remitted $2,000,000 to the developer as of
September 30, 2020.
380 Agreements
The Chapter 380 Incentive program, authorized by Chapter 380 of the Texas Local Government Code,
enables the City of Schertz to provide grants or reimbursements from the City's general fund. To become
eligible for Chapter 380 Incentives, projects must: create at least of $100 million in new real and personal
property; or generate at least $35 million in gross sales that is subject to the collection of local sales and use
tax. Businesses that have a 380 Incentive agreement with the City are eligible to receive a reimbursement of
taxes paid for the year if they have met the requirements outlined in the agreement by a certain date each
year. For the fiscal year ended September 30, 2020, the City reimbursed $1,223,379 in property taxes paid.
Economic Development Incentive Agreements
The City of Schertz Economic Development Corporation (the SEDC) negotiates economic development
incentive agreement on behalf of the SEDC and the City of Schertz (the City) on an individual basis. As of
September 30, 2020, the City had nine active incentive agreements.
On May 2, 2017, the City and the Corporation approved the Schertz Incentive Policy which outlines the
City's primary tools to attract commercial investment and promote economic development. Projects are
selected on a case -by -case basis in accordance current policy and state laws at the discretion of the
governing body. All incentive agreements are formalized through a performance agreement with specified
terms and recapture criteria.
51
The SEDC Incentive program, authorized by Chapters 501, 502 and 505 of the Texas Local Government
Code, enables the Corporation to fund allowable projects from the collection of one -half of one percent of
sales tax proceeds collected in the City of Schertz. In accordance with state law, the SEDC Incentive Policy
establishes grants and loans for businesses that create Primary Jobs for the following categories: Existing
Businesses (3 years of operation within City), Small Businesses (fewer than 50 full -time jobs or annual sales
less than $10 million), Large Impact Businesses (Up to $100 million in taxable property), and Extra Large
Businesses (over $100 million in taxable property).
The City and Corporation's outstanding incentive agreement grants are as follows:
City of Schertz - LGC 380.001 $ 420,050 $ 200,000
SEDC - LGC 501.101 811,445 522,819
SEDC - LGC 201.103 4,722,292 3,534,167
Service Concession Arrangements
The City entered into an agreement with Young Men's Christian Association of Greater San Antonio
( "YMCA "), under which YMCA will operate and collect user fees from the Natatorium and Outdoor Pools for
the next 20 years. YMCA will pay the city $100,000 annually over the course of the arrangement to cover
costs of debt service related to the facility; the present value of these installment payments is estimated to
be $820,141. The City will approve the rates and services that YMCA will provide, however, YMCA will retain
all revenues earned from the operation of the Natatorium. The YMCA will remit all revenues received from
operating the Outdoor Pools to the City with the exception of revenues earned from YMCA specific programs.
As of September 30, 2019, the Natatorium is still under construction and is reported by the City as
Construction in Progress. The City reports the Outdoor Pools and related equipment as capital assets
recorded at historical cost. The City reports a receivable in the amount of $820,141 on the government -wide
statements at year -end pursuant to the service concession arrangement, and a liability of $498,361 for the
present value of maintenance costs estimated over the life of the Service Concession arrangement. The
balance of these two amounts is recorded as a deferred inflow of resources.
Litigation
The City is the subject of various claims and litigation that have arisen in the course of its operations.
Management is of the opinion that the City's liability in these cases, if decided adversely to the City, will not
have a material effect on the City's financial position.
Cibolo Creek Municipal Authority
The Cibolo Creek Municipal Authority (CCMA) provides sewage treatment forthe area in and around the City.
In Fiscal year 2014, the City entered into an agreement with CCMA to construct a sewage treatment facility
in the southern portion of the City to primarily serve citizens of the City but also neighboring Cities and
future development. Because the City would be the primary customer at this time, the agreement stipulates
that the City will pay all future debt service on the bonds issued by CCMA to finance the project. The City is
the sole member at this time, so it is responsible for 100% of the project costs. Should other members join,
the City's share of the costs would be reduced.
Future debt service on the CCMA bonds are as follows:
Year Ended
September 30, Principal Interest Total
2021
$ 160,000
$ 250,950
$ 410,950
2022
165,000
247,750
412,750
2023
170,000
242,800
412,800
2024
175,000
237,700
412,700
2025
180,000
232,450
412,450
2026 -2030
1,010,000
1,048,850
2,058,850
2031 -2035
1,225,000
830,250
2,055,250
2036 -2040
1,540,000
519,250
2,059,250
2041 -2044
1,490,000
152,000
1,642,000
Total
$ 6,115,000
$ 3,762,000
$ 9,877,000
Construction Commitments
The City of Schertz has entered into commitments for various projects as follows:
Primary Government:
Governmental Activities:
FM 78 and Main Street
Fire Station 3
Building Improvements
Main Street Improvements
FM 1518 Street Improvements
Pedestrian Routes Project
Senior Center
YMCA - Bathroom Reovation
Window Replacement- Recreation Center
Total Governmental Commitments
Business -Type Activities:
Woman Hollering WasteWater
Corbett Ground Storage Tank & Pumps
Corbett Elevated Water Tank
Trainer Hale Road Distribution Main
Scenic Hills /Greenridge
Oil -Water Separator
E Dietz Creek De- Silting
FM1103 Utility Relocation
Total Business -Type Activities
Total Estimated Future Commitments
Risk Management
Estimated Project Expended to Estimated Future
Cost to City
Date
Commitment
$ 1,000,000
$ 235,006
$ 764,994
8,480,775
8,480,775
-
1,600,000
72,560
1,527,440
407,057
-
407,057
5,000,000
600,656
4,399,344
350,000
149,234
200,766
800,000
793,181
6,819
540,500
505,707
34,793
1,152,264
792,198
360,066
19,330,596
11,629,317
7,701,279
5,940,424
1,211,157
4,729,267
1,650,000
930
1,649,070
5,500,000
4,892,528
607,472
500,000
-
500,000
73,252
12,495
60,757
120,000
79,883
40,117
573,055
508,834
64,221
1,315,000
1,265,958
49,042
15,671,731
7,971,785
7,699,946
$ 35,002,327
$_19,601 102
$ 15,401,225
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets;
errors and omissions; and natural disasters. The City contracts with the Texas Municipal League
Intergovernmental Risk Pool, a public entity risk pool currently operating as a common risk management and
insurance program providing insurance coverage in the following areas: general liability, automobile liability
and physical damage, law enforcement liability, worker's compensation, real and personal property, mobile
equipment, and errors and omissions liability. TML is a multi - employer group that provides for a
combination of risk sharing among pool participants and stop loss coverage. Contributions are set annually
by the provider. Liability by the City is generally limited to the contributed amounts. There were no
significant increases or decreases in coverage from the prior year. For the past three fiscal years, no claims
or settlements have exceeded deductible amounts.
53
E. Subseauent Event
In November 2020, the City issued General Obligation Refunding Bonds, Series 2020 in the amount of
$7,555,000. These bonds have interest rates ranging from 1.50% and 4.00% and will mature in February
2036. These bonds will be used to refund the General Obligation Refunding Bonds, Series 2011 to provide a
present value savings and are secured by the City's ad valorem tax revenue.
F. New Accounting Standards
Significant new accounting standards issued by the Governmental Accounting Standards Board (GASB) not
yet implemented by the City include the following:
Statement No. 84, Fiduciary Activities - This Statement improves guidance regarding the identification of
fiduciary activities for accounting and financial reporting purposes and how those activities should be
reported. The focus is generally on whether a government is controlling the assets of the fiduciary activity
and on the beneficiaries with whom a fiduciary relationship exists. This Statement will become effective for
the City in fiscal year 2021.
Statement No. 87, Leases - This Statement will improve the accounting and financial reporting for leases by
governments by requiring recognition of certain lease assets and liabilities previously classifies as operating
leases. It establishes a single model for lease accounting based on the principle that leases are financing the
right to use an underlying asset. Under the Statement a lessee is required to recognize a lease liability and
an intangible right -to -use asset, and a lessor is required to recognize a lease receivable and a deferred
inflow of resource, enhancing the relevance and consistency of information about leasing activities. This
Statement will become effective for the City in fiscal year 2022.
G. COVID -19
In early March 2020, the COVID-19 virus was declared a global pandemic, and it continues to cause market
fluctuations. Business continuity and financial markets, including supply chains and consumer demand
across a broad range of industries and countries, could be severely impacted for months or more, as
governments and their citizens take significant and unprecedented measures to mitigate the consequences
of the pandemic. Management is carefully monitoring the situation and evaluating its options during this
time.
54
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
GENERAL FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2020
w
Variance With
Final Budget
Original
Final
Actual
Positive
Budget
Budget
Amounts
(Negative)
REVENUES
Taxes
$ 24,085,050 $
24,085,050 $
25,000,163 $
915,113
Permits and fees
1,799,110
1,799,110
1,750,837 (
48,273)
Service fees
1,901,742
1,901,742
1,724,150 (
177,592)
Fines and fees
902,728
902,728
833,148 (
69,580)
Intergovernmental
756,100
756,100
951,604
195,504
Investment earnings
480,000
480,000
300,369 (
179,631)
Miscellaneous
570,760
602,859
559,393 (
43,466)
Total Revenues
30,495,490
30,527,589
31,119,664
592,075
EXPENDITURES
General government:
Council
108,837
129,542
110,886
18,656
City manager
1,194,870
1,194,870
1,168,026
26,844
Municipal court
340,383
340,383
324,431
15,952
311 customer relations
107,747
107,747
110,238 (
2,491)
Planning & zoning
253,322
253,322
182,849
70,473
Legal
150,000
150,000
107,721
42,279
City secretary
201,461
201,461
206,458 (
4,997)
Nondepartmental
2,015,010
1,851,617
1,446,148
405,469
Public affairs
596,624
596,625
557,107
39,518
Engineering
767,011
767,011
659,373
107,638
Geographic information systems
182,674
182,674
187,173 (
4,499)
Citizens assistance
330,000
330,000
287,962
42,038
Special events
24,510
29,510
31,690 (
2,180)
Total General Government
6,272,449
6,134,762
5,380,062
754,700
Public safety:
Police department
9,079,001
9,079,001
7,604,159
1,474,842
Fire department
5,458,243
5,595,724
5,056,610
539,114
Inspection
999,402
999,402
903,194
96,208
Total Public Safety
15,536,646
15,674,127
13,563,963
2,110,164
Public environment:
Streets
1,522,166
1,749,074
1,521,425
227,649
Total Public Environment
1,522,166
1,749,074
1,521,425
227,649
Parks and recreation:
Parks
1,553,939
1,620,028
1,312,154
307,874
Pools
569,878
569,878
471,528
98,350
Community /Civic Center
395,017
395,018
320,481
74,537
Total Parks and Recreation
2,518,834
2,584,924
2,104,163
480,761
Cultural:
Library
1,025,736
1,025,897
1,034,435 (
8,538)
Total Cultural
1,025,736
1,025,897
1,034,435 (
8,538)
w
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
GENERAL FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2020
EXPENDITURES (CONTINUED)
Health:
Animal control
Total Health
Administration:
Information technology
Human resources
Finance
Purchasing & asset management
Building maintenance
Fleet service
Interfund charges
Total Administration
Total Expenditures - general fund
Grant fund - sub -fund 405
Total Expenditures
Variance With
Final Budget
Original Final Actual Positive
Budget Budget Amounts (Negative)
$ 669,982 $
699,826 $
648,503 $
51,323
669,982
699,826
648,503
51,323
4,000,169)
10,581
Total Other Financing Sources (Uses) (
2,455,137
2,470,537
1,821,502
649,035
639,174
704,174
668,638
35,536
608,893
608,893
634,266 (
25,373)
233,183
233,183
235,505 (
2,322)
1,491,682
1,608,197
1,432,015
176,182
1,046,481
1,046,481
913,883
132,598
( 2,723,317) (
2,723,317) (
2,703,943) (
19,374)
3,751,233
3,948,148
3,001,866
946,282
31,297,046
31,816,758
27,254,417
4,562,341
-
-
2,433,286 (
2,433,286)
31,297,046
31,816,758
29,687,703
2,129,055
Excess of revenues over expenditures ( 801,556) ( 1,289,169) 1,431,961 2,721,130
OTHER FINANCING SOURCES (USES)
Transfers in
95,000
405,025
- (
405,025)
Transfers out (
4,010,750) (
4,010,750) (
4,000,169)
10,581
Total Other Financing Sources (Uses) (
3,915,750) (
3,605,725) (
4,000,169) (
394,444)
NET CHANGE IN FUND BALANCE (
4,717,306) (
4,894,894) (
2,568,208)
2,326,686
FUND BALANCE - BEGINNING
17,465,668
17,465,668
17,465,668
-
FUND BALANCE - ENDING $
12,748,362 $
12,570,774 $
14,897,460 $
2,326,686
M
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
ECONOMIC DEVELOPMENT CORPORATION
REVENUES
Taxes
Investment income
Total Revenues
EXPENDITURES
Current:
General government
Administration
Total Expenditures
FOR THE YEAR ENDED SEPTEMBER 30, 2020
6,922,995 6,929,900 4,886,456 2,043,444
529,936 523,031 480,202 42,829
7,452,931 7,452,931 5,366,658 2,086,273
OTHER FINANCING SOURCES (USES)
Transfers out ( 500,000) ( 500,000) ( 500,000)
Total Other Financing Sources (Uses) ( 500,000) ( 500,000) ( 500,000)
NET CHANGE IN FUND BALANCE
( 3,110,648)
( 3,110,648)
Variance With
FUND BALANCE - BEGINNING
21,777,256
21,777,256
Final Budget
Original
Final
Actual
Positive
Budget
Budget
Amounts
(Negative)
$ 4,412,283 $
4,412,283
$ 4,819,288
$ 407,005
430,000
430,000
288,740
( 141,260)
4,842,283
4,842,283
5,108,028
265,745
6,922,995 6,929,900 4,886,456 2,043,444
529,936 523,031 480,202 42,829
7,452,931 7,452,931 5,366,658 2,086,273
OTHER FINANCING SOURCES (USES)
Transfers out ( 500,000) ( 500,000) ( 500,000)
Total Other Financing Sources (Uses) ( 500,000) ( 500,000) ( 500,000)
NET CHANGE IN FUND BALANCE
( 3,110,648)
( 3,110,648)
( 758,630) 2,352,018
FUND BALANCE - BEGINNING
21,777,256
21,777,256
21,777,256 -
FUND BALANCE - ENDING
$ 18,666,608
$ 18,666,608
$ 21,018,626 $ 2,352,018
CITY OF SCHERTZ, TEXAS
NOTES TO BUDGETARY SCHEDULES
SEPTEMBER 30, 2020
Budgetary Information - The budget is prepared in accordance with accounting principles generally
accepted in the United States of America. The City maintains strict budgetary controls. The objective of these
controls is to ensure compliance with legal provision embodied in the annual appropriated budget approved by
the City Council and as such is a good management control device. Annual budgets are adopted for the
general fund; debt service fund; hotel motel tax, park fund, tree mitigation; police forfeiture fund, library
advisory board fund, and the historical committee fund. Project - length financial plans are adopted for capital
projects funds. Of these budgets, only the General Fund, Debt Service and Economic Development
Corporation are legally adopted. A Grant sub -fund is included in the General Fund for financial reporting
purposes, and was not included in the legally adopted budget of the General Fund. Therefore, the amount of
the Grant sub -fund is presented as a reconciling item between the budgetary General Fund actual amounts
and the General Fund amounts presented in the basic financial statements.
Budgetary preparation and control are exercised at the department level. Actual expenditures may not legally
exceed appropriations at the fund level. Appropriations lapse at year -end.
For the fiscal year ended September 30, 2020, actual expenditures did not exceed budgeted expenditures at
the fund level for any of the City's funds.
Encumbrance accounting, in which appropriations are recorded as budgetary expenditures, is not utilized by
the City.
58
CITY OF SCHERTZ, TEXAS
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
TEXAS MUNICIPAL RETIREMENT SYSTEM
FOR THE YEAR ENDED SEPTEMBER 30, 2020
Measurement Date December 31,
Total pension liability
Service cost
Interest on total pension liability
Difference between expected and actual
experience
Change of assumptions
Benefit payments /refunds of contributions
Net Change in Total Pension Liability
Total Pension Liability, Beginning
Total Pension Liability, Ending (a)
Plan fiduciary net position
Contributions - employer
Contributions - employee
Net investment income
Benefit payments /refunds of contributions
Administrative expenses
Other
Net Change in Fiduciary Position
Fiduciary Net Position, Beginning
Fiduciary Net Position, Ending (b)
Net pension liability = (a) -(b)
Fiduciary Net Position as a Percentage of
Total Pension Liability
Covered Payroll
Net Pension Liability as a Percentage of
Covered Payroll
2019
$ 3,421,878 $
4,898,478
( 108,478)
263,015
( 2,244,447)
6,230,446
71,981,331
2018 2017
3,301,265 $ 3,073,538
4,505,483
4,111,517
34,393
416,585
( 1,914,159)
( 1,843,774
5,926,982
5,757,866
66,054,349
60,296,483
$ 78,211,777 $ 71,981,331 $ 66,054,349
$ 3,163,340
$ 3,033,936
$ 2,793,644
1,380,585
1,326,518
1,232,232
8,093,416
( 1,540,890)
5,999,805
( 2,244,447)
( 1,914,159)
( 1,843,774)
( 45,681)
( 29,768)
( 31,080)
( 1,373)
( 1,554)
( 1,575)
10,345,840
874,083
8,149,252
52,293,723
51,419,640
43,270,388
62,639,563
52,293,723
51,419,640
$ 15,572,214
$ 19,687,608
$ 14,634,709
80.09%
72.65%
77.84%
$ 19,722,641 $ 18,896,766 $ 17,603,310
78.96% 104.19% 83.14%
Note: GASB Statement No. 68 requires 10 years of data to be provided in this schedule. As of year -end, all
years are not available. Additional years will be added in the future as the information becomes available.
59
2016 2015 2014
$ 2,855,745 $
3,763,562
139,216
( 1,581,272)
5,177,251
55,119,232
2,724,337 $
3,556,428
120,434
59,193
( 1,570,211)
4,890,181
50,229,051
2,558,743
3,245,266
( 122,286)
( 1,068,487)
4,613,236
45,615,815
$ 60,296,483 $ 55,119,232 $ 50,229,051
$ 2,627,335
$ 2,542,565
$ 2,403,929
1,152,864
1,095,260
1,077,097
2,602,572
53,742
1,841,586
( 1,581,272)
( 1,570,211)
( 1,068,487)
( 29,385)
( 32,727)
( 19,219)
( 1,583)
( 1,616)
( 1,580)
4,770,531
2,087,013
4,233,326
38,499,857
36,412,844
32,179,518
43,270,388
38,499,857
36,412,844
$ 17,026,095
$ 16,619,375
$ 13,816,207
71.76% 69.85%
$ 16,478,620 $ 15,648,114 $
103.32% 106.21%
72.49%
15,389,154
89.78%
60
CITY OF SCHERTZ, TEXAS
SCHEDULE OF EMPLOYER CONTRIBUTIONS
TEXAS MUNICIPAL RETIREMENT SYSTEM
FOR THE YEAR ENDED SEPTEMBER 30, 2020
Fiscal Year Ended September 30, 2020 2019
Actuarially determined contribution $ 3,235,479 $ 3,129,413
Contributions in relation to the actuarially
determined contribution 3,235,479 3,129,413
Contribution deficiency (excess)
Covered payroll 20,401,412 19,520,269
Contributions as a percentage of covered payroll 15.86% 16.03%
Note: GASB Statement No. 68 requires 10 years of data to be provided in this schedule. As of year -end, all
years are not available. Additional years will be added in the future as the information becomes available.
NOTES TO SCHEDULE OF CONTRIBUTIONS
Valuation Date:
Actuarially determined contribution rates are calculated as of December 31st and become effective on
January 1st, 13 months and a day later.
Methods and Assumptions Used to Determine Contribution Rates:
Actuarial cost method
Entry age normal
Amortization method
Level percentage of payroll, closed
Remaining amortization period
26 years
Asset valuation method
10 year smoothed market; 12% soft corridor
Inflation
2.50%
Salary increases
3.50% to 11.50% including inflation
Investment rate of return
6.75%
Retirement age
Experience -based table of rates that are specific to
the City's plan of benefits. Last updated for the 2019
valuation pursuant to an experience study of the
period 2014 -2018.
Mortality
Post- retirement: 2019 Municpal Retirees of Texas
Mortality Tables. The rates are projected on a fully
generational basis with scale UMP. Pre - retirement:
PUB(10) mortality tables, with the Public Safety table
used for males and the General Employee table used
for females. The rates are projected on a fully
generational basis with scale UMP.
61
2018 2017 2016 2015
$ 2,971,592 $ 2,756,511 $ 2,592,593 $ 2,487,856
2,971.592
18,605,654
15.97%
756,511 2,592,593
17, 347, 849
15.89%
16,175,988
16.03%
62
2.487,856
15,486,735
16.06%
CITY OF SCHERTZ, TEXAS
SCHEDULE OF CHANGES IN TMRS OTHER POST - EMPLOYMENT BENEFIT LIABILITY
AND RELATED RATIOS
FOR THE YEAR ENDED SEPTEMBER 30, 2020
Measurement Date December 31,
Total OPEB liability
Service cost
Interest on total OPEB liability
Differences in actuarial experience
Change of assumptions
Benefit payments
Net change in total OPEB liability
Total OPEB liability, beginning
Total OPEB liability, ending (a)
Covered - employee payroll
Total OPEB liability as a percentage of
covered - employee payroll
2019 2018 2017
$ 33,528 $ 37,794 $ 29,926
26,904 21,182 20,123
( 105,282) 86,276 -
148,494 ( 54,027) 57,257
( 3,945) ( 3,779) ( 3,521)
99,699 87,446 103,785
710,387 622,941 519,156
$ 810,086 $ 710,387 $ 622,941
$ 19,722,641 $ 18,896,766 $ 17,603,310
4.11% 3.76% 3.54%
Note: 10 years of data is required to be provided in this schedule. As of year -end, all years are not
available. Additional years will be added in the future as the information becomes available.
NOTES TO SCHEDULE
Valuation Date:
Actuarially determined contribution rates are calculated as of December 31st and become effective on
January 1st, 13 months and a day later.
Methods and Assumptions Used to Determine Contribution Rates:
Inflation 2.50%
Salary increases 3.50% to 11.50% including inflation
Discount rate 2.75%
Administrative expenses All administrative expenses are paid through the Pension Trust
and accounted for under reporting requirements under GASB
Statement No. 68.
Mortality rates - service retirees 2019 Municipal Retirees of Texas Mortality Tables. The rates
are projected on a fully generational basis with scale LIMP.
Mortality rates - disabled retirees 2019 Municipal Retirees of Texas Mortality Tables with a 4
year setforward for males and a 3 year set - forward for
females. In addition, a 3.5% and 3% minimum mortality rate
will be applied to reflect the impairment for younger members
who become disabled for males and females, respectively. The
rates are projected on a fully generational basis by Scale UMP
to account for future mortality improvements subject to the
3% floor.
Other information No assets are accumulated in a trust that meets the criteria in
paragraph 4 of Statement No. 75 to pay related benefits.
Changes in actuarial assumptions reflect changes in the
discount rate and, in 2019, changes in assumptions adopted
from review of plan provisions.
63
CITY OF SCHERTZ, TEXAS
SCHEDULE OF CHANGES IN CITY RETIREE HEALTH OTHER POST - EMPLOYMENT BENEFIT
LIABILITY AND RELATED RATIOS
FOR THE YEAR ENDED SEPTEMBER 30, 2020
Measurement Date December 31, 2020 2019 2018
Total OPEB liability
Service cost
Interest on total OPEB liability
Difference in actuarial experience
Change of assumptions
Benefit payments
Net change in total OPEB liability
Total OPEB liability, beginning
Total OPEB liability, ending (a)
Covered payroll
Total OPEB liability as a percentage of
covered payroll
$ 125,648
$ 121,821
$ 107,517
78,646
67,947
69,435
( 343,086)
14,962
Demographic assumptions
275,398
( 81,106)
96,092
( 59,401)
( 57,530)
( 42,189)
77,205
66,094
230,855
2,086,718
2,020,624
1,789,769
$ 2,163,923 $ 2,086,718 $ 2,020,624
$ 19,521,924 $ 18,974,951 $ 16,068,891
11.08% 11.00% 12.57%
Note: 10 years of data is required to be provided in this schedule. As of year -end, all years are not
available. Additional years will be added in the future as the information becomes available.
NOTES TO SCHEDULE
Valuation Date: December 31, 2020
Methods and Assumptions Used to Determine Contribution Rates:
Actuarial cost method
Individual entry -age
Discount rate
2.75% as of December 31, 2019
Inflation
2.50%
Salary increases
3.50% to 11.50% including inflation
Demographic assumptions
Based on the experience study covering the four -year period
ending December 31, 2018 as conducted for the Texas
Municipal Retirement System (TMRS).
Mortality
For healthy retirees, the gender- distinct 2019 Municipal Retirees
of Texas mortality tables are used. The rates are projected on a
fully generational basis using the ultimate mortality
improvement rates in the MP tables to account for future
mortality improvements.
Health care trend rates
Initial rate of 7.00% declining to an ultimate rate of 4.15% after
15 years.
Participation rates
For all non - Medicare retirees, 30% if retiring from age 50 to 59,
and 35% if retiring from age 60 to 64.
Other information The discount rate changed from 3.71% as of December 31,
2018 to 2.75% as of December 31, 2019. Additionally, the
demographic assumptions were updated to reflect the 2019
TMRS Experience Study. Both the participation assumption and
health care trend rates were updated to reflect the plan's
anticipated experience.
64
SUPPLEMENTARY INFORMATION
Comparative Schedules — Governmental Funds
General Fund
Economic Development Corporation
Debt Service Fund
Capital Projects Fund
Combining Statements and Individual Fund Schedules - Nonmaior Governmental Funds
Hotel Occupancy Fund - will account for proceeds of hotel occupancy taxes to be used strictly for those
kinds of programs that promote the tourism industry.
Park Fund - will account for revenues from developers' fees (in lieu of park land dedication), grants, and
donations and is designed to monitor and manage improvement of the City's park system.
Tree Mitigation Fund - will account for revenues from permits, grants and donations to preserve and replace
trees in the City.
Treasury Forfeitures Fund - will account for revenue received from drug related cases in conjunction with
other law enforcement agencies within the jurisdiction of the U.S. Treasury department.
Justice Forfeitures Fund - will account for revenue received from drug related cases in conjunction with
other law enforcement agencies within the jurisdiction of the US Department of Justice.
State Forfeitures Fund - will account for revenue received from drug related cases in conjunction with other
law enforcement agencies within the jurisdiction of the State Forfeiture Program.
Library Advisory Board - to account for certain fees generated at the library to be used by the Board for
general improvements to the Library.
Historical Committee Fund - will account for funds received for the preservation of the history of the City.
Capital Recovery Roadways Fund - to account for a fee assessed for capital recovery on new construction.
CITY OF SCHERTZ, TEXAS
COMPARATIVE BALANCE SHEETS
GENERAL FUND
SEPTEMBER 30, 2020
(WITH COMPARATIVE TOTALS FOR 2019)
ASSETS
Cash and cash equivalents
Investments
Receivables (net of allowances)
Taxes
Accounts and other
Inventory
Prepaids
Restricted assets:
Cash and cash equivalents
Total Assets
LIABILITIES
Accounts payable
Accrued salaries and benefits
Customer deposits
Due to other governments
Due to other funds
Unearned revenues
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total Deferred Inflows of Resources
FUND BALANCES
Nonspendable for:
Inventory
Restricted for:
Police and public safety /municipal court
Municipal court
PEG capital fees
Animal control
Veterans
Scholarships
Committed for:
Civic Center /CIED
Assigned for:
Property replacement
Subsequent year's budget
Unassigned
Total Fund Balances
Total Liabilities, Deferred inflows of Resources,
and Fund Balances
65
2020
2019
11,379,721
$ 1,211,660
2,507,998
15,105,396
2,393,311
2,134,563
3,381,019
1,775,482
99,871
117,009
14,916
14,916
867,708
785,708
20,644,544
21,144,734
1,005,821
685,560
1,209,493
970,679
7,040
22,251
123,911
123,116
16,139
16,139
39,159
33,314
2,401,563
1,851,059
3,345,521
1,754,646
3,345,521
1,754,646
114,787
131,925
226,092
226,093
823,452
823,451
807,140
723,353
33,408
33,408
2,109
2,109
104,156
101,673
687,780
687,779
891,319 891,321
1,081,160 4,689,305
10,126,057 9,228,612
14,897,460 17, 539,029
$ 20,644,544 $ 21,144,734
CITY OF SCHERTZ, TEXAS
COMPARATIVE SCHEDULES OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
GENERAL FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2020
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED 2019)
66
2020
2019
REVENUES
Taxes
$ 25,000,163
$ 23,488,223
Permits and fees
1,750,837
1,605,299
Service fees
1,724,150
1,909,300
Fines and fees
833,148
926,657
Intergovernmental
951,604
965,768
Investment earnings
300,369
489,051
Miscellaneous
559,393
684,882
Total Revenues
31,119,664
30,069,180
EXPENDITURES
Current:
General government
5,381,790
5,389,701
Public safety
15,324,530
13,926,364
Public environment
1,270,894
1,112,041
Parks and recreation
2,067,649
2,350,370
Cultural
1,034,435
998,445
Health
589,616
498,871
Administration
2,799,004
3,231,294
Capital outlay
1,175,241
649,055
Debt service:
Principal
44,544
-
Total Expenditures
29,687,703
28,156,141
Excess (Deficiency) of Revenues Over Expenditures
1,431,961
1,913,039
OTHER FINANCING SOURCES (USES)
Transfers out
( 4,000,169)
( 4,463)
Total Other Financing Sources (Uses)
( 4,000,169)
( 4,463)
NET CHANGE IN FUND BALANCE
( 2,568,208)
1,908,576
FUND BALANCES - BEGINNING
17,465,668
15,630,453
FUND BALANCES - ENDING
$ 14,897,460
$ 17,539,029
66
CITY OF SCHERTZ, TEXAS
COMPARATIVE BALANCE SHEETS
ECONOMIC DEVELOPMENT CORPORATION
SEPTEMBER 30,2020
(WITH COMPARATIVE TOTALS FOR 2019)
ASSETS
Cash and cash equivalents
Investments
Receivables, net of allowances:
Taxes
Accounts and other
Total Assets
LIABILITIES
Accounts payable
Total Liabilities
FUND BALANCES
Restricted for:
Economic development
Total Fund Balances
Total Liabilities and Fund Balances
67
2020
$ 22,032,946
2,169,760
818,817
7,949
25,029,472
4,010,846
4,010,846
21,018,626
21,018,626
$ 25,029,472
2019
$ 224,144
20,824,561
739,361
8,448
21,796,514
19,258
19,258
21,777,256
21,777,256
$ 21,796,514
CITY OF SCHERTZ, TEXAS
COMPARATIVE SCHEDULES OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
ECONOMIC DEVELOPMENT CORPORATION
FOR THE YEAR ENDED SEPTEMBER 30, 2020
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED 2019)
REVENUES
Taxes
Investment earnings
Miscellaneous
Total Revenues
EXPENDITURES
Current:
General government
Administration
Total Expenditures
Excess (Deficiency) of Revenues Over (Under) Expenditures
OTHER FINANCING SOURCES (USES)
Transfers out
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCE
FUND BALANCES - BEGINNING
FUND BALANCES - ENDING
68
2020 2019
$ 4,819,288 $ 4,172,238
288,740 452,214
- 196,003
5,108,028 4,820,455
4,886,456 358,810
480,202 496,357
5,366,658 855,167
( 258,630) 3,965,288
( 500,000) -
( 500,000) -
( 758,630) 3,965,288
21,777,256 17,811,968
$ 21,018,626 $ 21,777,256
CITY OF SCHERTZ, TEXAS
COMPARATIVE BALANCE SHEETS
DEBT SERVICE FUND
SEPTEMBER 30, 2020
(WITH COMPARATIVE TOTALS FOR 2019)
ASSETS
Cash and cash equivalents
Investments
Receivables, net of allowances:
Taxes
Total Assets
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total Deferred Inflows of Resources
FUND BALANCES
Restricted for:
Debt service
Total Fund Balances
Total Deferred Inflows of Resources and Fund
Balances
69
2020 2019
$ 785,919 $ 91,510
- 910,716
120,816 82,682
906,735 1,084,908
120,816
120,816
785,919
785,919
$ 906,735
1,002,226
1,002,226
$ 1,084,908
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
DEBT SERVICE FUND
BUDGET AND ACTUAL
FOR THE YEAR ENDED SEPTEMBER 30, 2020
(WITH COMPARATIVE ACTUAL TOTALS FOR 2019)
REVENUES
Property taxes
Investment income
Miscellaneous
Total Revenue
EXPENDITURES
Debt service:
Principal
Interest and fiscal charges
Bond issue costs
Payment to refunded bond escrow agent
Total Expenditures
4,952,413
4,952,413
4,885,000
Variance With
4,565,000
2,069,590
2,069,590
2020
Final Budget
2019
Original
Final
Actual
Positive
Actual
Budget
Budget
Amounts
(Negative)
Amounts
$ 6,733,000
$ 6,733,000
$ 6,714,516
$( 18,484) $
6,414,868
50,000
50,000
19,900
( 30,100)
70,318
100,000
100,000
75,000
( 25,000)
100,277
6,883,000
6,883,000
6,809,416
( 73,584)
6,585,463
4,952,413
4,952,413
4,885,000
67,413
4,565,000
2,069,590
2,069,590
2,136,523 (
66,933)
2,069,215
5,000
5,000
4,200
800
120,869
-
-
-
-
5,489,912
7,027,003
7,027,003
7,025,723
1,280
12,244,996
Excess (Deficiency) of Revenues over Expenditures ( 144,003) ( 144,003) ( 216,307) ( 74,864) ( 5,659,533)
OTHER FINANCING SOURCES (USES)
Issuance of refunding debt - - - - 5,225,000
Premiums from issuance of debt - - - - 336,901
Total Other Financing Sources (Uses) - - - - 5,561,901
NET CHANGE IN FUND BALANCE
( 144,003) (
144,003) (
216,307) ( 72,304) (
97,632)
FUND BALANCE - BEGINNING
1,002,226
1,002,226
1,002,226 -
1,099,858
FUND BALANCE - ENDING
$ 858,223 $
858,223 $
785,919 $( 72,304) $
1,002,226
70
CITY OF SCHERTZ, TEXAS
COMPARATIVE BALANCE SHEETS
CAPITAL PROJECTS FUND
SEPTEMBER 30, 2020
(WITH COMPARATIVE TOTALS FOR 2019)
71
2020
2019
ASSETS
Cash and cash equivalents
$ 10,677,080
$ 34,120
Investments
-
14,147,499
Accounts receivable
-
52,248
Total Assets
10,677,080
14,233,867
LIABILITIES
Accounts payable
428,387
825,769
Retainage payable
111,135
293,788
Total Liabilities
539,522
1,119,557
FUND BALANCES
Restricted for:
Capital improvement
6,065,616
13,114,310
Total Fund Balances
6,065,616
13,114,310
Total Liabilities and Fund Balance
$ 6,605,138
$ 14,233,867
71
THIS PAGE LEFT BLANK INTENTIONALLY
CITY OF SCHERTZ, TEXAS
COMPARATIVE SCHEDULES OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
CAPITAL PROJECTS FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2020
(WITH COMPARTIVE TOTALS FOR THE YEAR ENDED
2019)
2020
2019
REVENUES
Intergovernmental $
-
$ 91,913
Investment earnings
154,977
382,850
Miscellaneous
132,901
-
Total Revenues
287,878
474,763
EXPENDITURES
Capital outlay
7,837,991
8,308,326
Debt service:
Bond issue costs
-
68,213
Total Expenditures
7,837,991
8,376,539
Excess (Deficiency) of Revenues Over Expenditures (
7,550,113)
( 7,901,776)
OTHER FINANCING SOURCES (USES)
Issuance of debt
-
4,620,000
Premiums from issuance of debt
-
303,214
Transfers in
4,500,000
117,632
Transfers out
-
( 81,525)
Total Other Financing Sources (Uses)
4,500,000
4,959,321
NET CHANGE IN FUND BALANCE (
3,050,113)
( 2,942,455)
FUND BALANCES - BEGINNING
13,187,671
16,056,765
FUND BALANCES - ENDING $
10,137,558
$ 13,114,310
72
CITY OF SCHERTZ, TEXAS
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2020
FUND BALANCES
Restricted for:
Tourism development 2,116,464 - - -
Tree mitigation - - 463,228 -
Parks - 2921236 - -
Police forfeiture - - - 32,560
Roadways - - - -
Library - - - -
Historical committee - - - -
Total Fund Balances 2,116,464 292,236 463,228 32,560
Total Liabilities and Fund Balances $ 2,116,464 $ 292,236 $ 464,828 $ 32,560
W
Special Revenue Funds
Hotel
Occupancy
Park
Tree
Treasury
Fund
Fund
Mitigation
Forfeitures
ASSETS
Cash and cash equivalents
$ 2,084,939 $
292,236 $
464,828
$ 32,560
Accounts receivable, net of allowance
31,525
-
-
-
Total Assets
2,116,464
292,236
464,828
32,560
LIABILITIES
Accounts payable
-
-
1,600
-
Total Liabilities
-
-
1,600
-
FUND BALANCES
Restricted for:
Tourism development 2,116,464 - - -
Tree mitigation - - 463,228 -
Parks - 2921236 - -
Police forfeiture - - - 32,560
Roadways - - - -
Library - - - -
Historical committee - - - -
Total Fund Balances 2,116,464 292,236 463,228 32,560
Total Liabilities and Fund Balances $ 2,116,464 $ 292,236 $ 464,828 $ 32,560
W
- 2,116,464
- - 463,228
- - - - - 292,236
210,453 12,774 - - - 255,787
- - - - 937,627 937,627
75,044 - - 75,044
- - - 13,705 - 13,705
210,453 12,774 75,044 13,705 937,627 4,154,091
$ 210,453 $ 12,774 $ 75,103 $ 13,705 $ 937,627 $ 4,155,750
74
Capital
Special Revenue Funds
Projects Fund
Library
Historical
Capital
Total Nonmajor
Justice
State
Advisory
Committee
Recovery
Governmental
Forfeitures
Forfeitures
Board
Fund
Roadways
Funds
$ 210,453
$ 12,774 $
75,103
$ 13,705
$ 937,627
$ 4,124,225
-
-
-
-
-
31,525
210,453
12,774
75,103
13,705
937,627
4,155,750
-
-
59
-
-
1,659
-
-
59
-
-
1,659
- 2,116,464
- - 463,228
- - - - - 292,236
210,453 12,774 - - - 255,787
- - - - 937,627 937,627
75,044 - - 75,044
- - - 13,705 - 13,705
210,453 12,774 75,044 13,705 937,627 4,154,091
$ 210,453 $ 12,774 $ 75,103 $ 13,705 $ 937,627 $ 4,155,750
74
CITY OF SCHERTZ, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2020
REVENUES
Occupancy tax
Permits and fees
Service fees
Fines and fees
Investment earnings
Miscellaneous
Total Revenues
EXPENDITURES
Current:
General government
Public safety
Parks and recreation
Cultural
Administration
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenue
Over Expenditures
OTHER FINANCING SOURCES (USES)
Transfer in
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING
FUND BALANCES - ENDING
SDecial Revenue Funds
Hotel
Occupancy Park Tree Treasury
Fund Fund Mitigation Forfeiture
$ 268,946 $ - $ - $ -
- 4,000 52,427 -
- - - 4,400
26,224 3,325 5,569 -
95,954 - - -
5,760 28,674 -
74,428 - - -
223,189 - - -
393,571 5,760 28,674 -
( 98,401) 1,566 29,822 4,400
( 98,401)
1,566
29,822
4,400
2,214,865
290,670
433,406
28,160
$ 2,116,464 $
292,236 $
463,228 $
32,560
- - - 169 - 96,123
42,063 - - - - 42,063
- - - - - 34,434
10,456 - - 10,456
- - - - - 74,428
40,465 - - - - 263,654
82,528 - 10,456 169 - 521,158
( 44,337) 7,665 ( 398) ( 126) 852,174 752,365
169 - 169
( 44,337)
7,665
Capital
43
852,174
Special Revenue Funds
Projects Fund
Library
Historical Capital
Total Nonmajor
Justice
State Advisory
Committee Recovery
Governmental
Forfeitures
Forfeitures Board
Fund Roadways
Funds
$ 210,453 $
12,774
$ 75,044 $
$ -
$ - $ -
$ - $ -
$ 268,946
-
- -
- -
56,427
-
- 9,204
43 850,201
859,448
35,444
7,665 -
- -
47,509
2,747
- 850
- 1,973
40,688
- - - 169 - 96,123
42,063 - - - - 42,063
- - - - - 34,434
10,456 - - 10,456
- - - - - 74,428
40,465 - - - - 263,654
82,528 - 10,456 169 - 521,158
( 44,337) 7,665 ( 398) ( 126) 852,174 752,365
169 - 169
( 44,337)
7,665
( 398)
43
852,174
752,534
254,790
5,109
75,442
13,662
85,453
3,401,557
$ 210,453 $
12,774
$ 75,044 $
13,705 $
937,627 $
4,154,091
C
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
HOTEL OCCUPANCY FUND
REVENUES
Occupancy tax
Investment earnings
Miscellaneous
Total Revenues
EXPENDITURES
Current:
General government
Administration
Capital outlay
Total Expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING
FUND BALANCE - ENDING
FOR THE YEAR ENDED SEPTEMBER 30, 2020
(WITH COMPARATIVE ACTUAL TOTALS FOR 2019)
Original Final
Budget Budget
Variance With
2020 Final Budget 2019
Actual Positive Actual
Amounts (Negative) Amounts
$ 500,000 $ 500,000 $ 268,946 $( 231,054) $ 514,679
53,000 53,000 26,224 ( 26,776) 48,015
- - - - 3,071
553,000 553,000 295,170 ( 257,830) 565,765
181,466 181,466 95,954 85,512 130,265
74,428 74,428 74,428 - 67,582
250,000 250,000 223,189 26,811 -
505,894 505,894 393,571 112,323 197,847
47,106 47,106 ( 98,401) ( 145,507) 367,918
2,214,865 2,214,865 2,214,865 - 1,846,947
$ 2,261,971 $ 2,261,971 $ 2,116,464 $( 145,507) $ 2,214,865
EN
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
PARK FUND
REVENUES
Licenses and permits
Investment earnings
Investment earnings
Total Revenues
EXPENDITURES
Current:
Parks and recreation
Capital outlay
Total Expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING
FUND BALANCE - ENDING
FOR THE YEAR ENDED SEPTEMBER 30, 2020
(WITH COMPARATIVE ACTUAL TOTALS FOR 2019)
Original Final
Budget Budget
Variance With
2020 Final Budget 2019
Actual Positive Actual
Amounts (Negative) Amounts
$ 70,000 $ 70,000 $ 4,000 $( 66,000) $ 11,000
8,000 8,000 3,325 ( 4,675) 7,600
- - 1 1 7,600
78,000 78,000 7,326 ( 70,674) 18,600
- - 5,760 ( 5,760) 15,250
177,000 177,000 - 177,000 86,841
177,000 177,000 5,760 171,240 102,091
( 99,000) ( 99,000) 1,566 100,566 ( 83,491)
290,670 290,670 290,670 - 374,161
$ 191,670 $ 191,670 $ 292,236 $_____100,566 $______290,670
78
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
TREE MITITGATION FUND
REVENUES
Licenses and permits
Investment earnings
Miscellaneous
Total Revenues
EXPENDITURES
Current:
Parks and recreation
Total Expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING
FUND BALANCE - ENDING
FOR THE YEAR ENDED SEPTEMBER 30, 2020
(WITH COMPARATIVE ACTUAL TOTALS FOR 2019)
79
Variance With
2020
Final Budget
2019
Original
Final
Actual
Positive
Actual
Budget
Budget
Amounts
(Negative)
Amounts
$ 70,000 $
70,000
$ 52,427
$( 17,573) $
19,162
8,750
8,750
5,569
( 3,181)
10,306
-
-
500
500
-
78,750
78,750
58,496
( 20,254)
29,468
-
75,000
28,674
46,326
27,867
-
75,000
28,674
46,326
27,867
78,750
3,750
29,822
26,072
1,601
433,406
433,406
433,406
-
431,805
$ 512,156 $
437,156
$____463,228
$_____26_,072 $____433,406
79
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
TREASURY FORFEITURES FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2020
(WITH COMPARATIVE TOTALS FOR 2019)
REVENUES
Fines and fees
Investment earnings
Total Revenues
EXPENDITURES
Capital outlay
Total Expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING
FUND BALANCE - ENDING
80
2020 2019
$ 4,400 $ 900
206
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
JUSTICE FORFEITURES FUND
REVENUES
Fines and fees
Investment earnings
Total Revenues
EXPENDITURES
Current:
Public safety
Capital outlay
Total Expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING
FUND BALANCE - ENDING
FOR THE YEAR ENDED SEPTEMBER 30, 2020
(WITH COMPARATIVE ACTUAL TOTALS FOR 2019)
Original Final
Budget Budget
42,063 { 42,063) 50,306
40,465 { 40,465) 39,144
82,528 { 82,528) 89,450
( 44,337) ( 44,337) ( 59,341)
254,790 254,790 254,790 - 314,131
$ 254,790 $ 254,790 $ 210,453 ${ 44,337) $ 314,131
81
Variance With
2020
Final Budget
2019
Actual
Positive
Actual
Amounts
(Negative)
Amounts
$ 35,444
$ 35,444 $
23,509
2,747
2,747
6,600
38,191
38,191
30,109
42,063 { 42,063) 50,306
40,465 { 40,465) 39,144
82,528 { 82,528) 89,450
( 44,337) ( 44,337) ( 59,341)
254,790 254,790 254,790 - 314,131
$ 254,790 $ 254,790 $ 210,453 ${ 44,337) $ 314,131
81
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
STATE FORFEITURES FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2020
(WITH COMPARATIVE TOTALS FOR 2019)
REVENUES
Fines and fees
Investment earnings
Total Revenues
EXPENDITURES
Current:
Public safety
Total Expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING
FUND BALANCE - ENDING
82
2020 2019
$ 7,665 $ 2,548
8,773
- 8,773
7,665 ( 61225)
5,109 11,334
$ 12,774 $ 5,109
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPEDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
LIBRARY ADVISORY BOARD
FOR THE YEAR ENDED SEPTEMBER 30, 2020
(WITH COMPARATIVE ACTUAL TOTALS FOR 2019)
EXPENDITURES
Current:
Cultural 21,200 21,200 10,456 10,744 19,664
Total Expenditures 21,200 21,200 10,456 10,744 19,664
NET CHANGE IN FUND BALANCE
550
550
( 398)
Variance With
3,561
FUND BALANCE - BEGINNING
2020
Final Budget
2019
-
Original
Final
Actual
Positive
Actual
$ 75,992 $
Budget
Budget
Amounts
(Negative)
Amounts
REVENUES
Service fees
$ 20,000 $
20,000
$ 9,204
$( 10,796) $
21,365
Investment earnings
1,550
1,550
850
( 700)
1,853
Miscellaneous
200
200
4
( 196)
7
Total Revenues
21,750
21,750
10,058
( 11,692)
23,225
EXPENDITURES
Current:
Cultural 21,200 21,200 10,456 10,744 19,664
Total Expenditures 21,200 21,200 10,456 10,744 19,664
NET CHANGE IN FUND BALANCE
550
550
( 398)
( 948)
3,561
FUND BALANCE - BEGINNING
75,442
75,442
75,442
-
71,881
FUND BALANCE - ENDING
$ 75,992 $
75,992
$ 75,044
$( 948) $
75,442
83
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
HISTORICAL COMMITTEE FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2020
(WITH COMPARATIVE ACTUAL TOTALS FOR 2019)
REVENUES
Sale of merchandise
Miscellaneous
Total Revenues
EXPENDITURES
Current:
General government
Total Expenditures
Excess of Revenues Over Expenditures
OTHER FINANCING SOURCES (USES)
Original Final
Budget Budget
$ 1,000 $ 1,000 $
1,000 1,000
Variance With
2020 Final Budget 2019
Actual Positive Actual
Amounts (Negative) Amounts
43 $( 957) $ 708
- 17
43 ( 957) 725
11,750
11,750
169
11,581
2,871
11,750
11,750
169
11,581
2,871
( 10,581)
2,871
( 10,750)
( 10,750)
( 126)
10,624
( 2,146)
Transfers in
10,750
10,750
169
( 10,581)
2,871
Total Other Financing Sources (Uses)
10,750
10,750
169
( 10,581)
2,871
NET CHANGE IN FUND BALANCE
-
-
43
43
725
FUND BALANCE - BEGINNING
13,662
13,662
13,662
-
12,937
FUND BALANCE - ENDING $
13,662 $
13,662 $
13,705
$ 43 $
13,662
84
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
CAPITAL RECOVERY ROADWAYS
FOR THE YEAR ENDED SEPTEMBER 30, 2020
(WITH COMPARATIVE TOTALS FOR 2019)
REVENUES
Service fees
Investment earnings
Total Revenues
OTHER FINANCING SOURCES (USES)
Transfers out
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING
FUND BALANCE - ENDING
85
2020 2019
$ 850,201 $ 138,920
1,973 1,451
852,174 140,371
( 116,040)
( 116,040)
852,174 24,331
85,453 61,122
$ 937,627 $ 85,453
STATISTICAL SECTION
THIS PAGE LEFT BLANK INTENTIONALLY
STATISTICAL SECTION
(Unaudited)
This part of the City of Schertz, Texas Comprehensive Annual Financial Report presents detailed information
as a context for understanding what the information in the financial statements, note disclosures, and
required supplementary information says about the City's overall financial health.
Contents
�Z
Financial Trends
These schedules contain trend information to help the reader
understand how the City's financial performance and well -being have
changed over time. 86-95
Revenue Capacity
These schedules contain information to help the reader assess the
City's most significant local revenue sources. 96- 104
Debt Capacity
These schedules present information to help the reader assess the
affordability of the City's current levels of outstanding debt and the
City's ability to issue additional debt in the future. 105 - 110
Demographic and Economic Information
These schedules offer demographic and economic indicators to help
the reader understand the environment within which the City's
financial activities take place. 111-114
Operating Information
These schedules contain service and infrastructure data to help the
reader understand how the information in the City's financial report
relates to the services the City provides and the activities it performs. 115- 120
CITY OF SCHERTZ, TEXAS
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(UNAUDITED)
Business -type activities
Net investment in capital assets
$
Fiscal Year
$
50,161,157
$
2011
2012
2013
2014
Governmental activities
-
-
Net investment in capital assets $
55,415,699 $
56,616,809 $
57,543,618 $
62,792,671
Restricted
2,089,971
1,917,098
7,788,354
10,401,728
Unrestricted
7,370,101
8,907,326
6,645,418
8,613,239
Total Governmental Activities Net
Position $
64,875,771 $
67,441,233 $
71,977,390 $
81,807,638
Business -type activities
Net investment in capital assets
$
51,838,589
$
50,161,157
$
53,071,836
$
53,674,437
Restricted
-
-
-
-
Unrestricted
7,441,722
11,577,645
11,902,282
16,450,988
Total Business -Type Activities Net
Position
$
59,280,311
$
61,738,802
$
64,974,118
$
70,125,425
Primary government
Net investment in capital assets
$
107,254,288
$
106,777,966
$
110,615,454
$
116,467,108
Restricted
2,089,971
1,917,098
7,788,354
10,401,728
Unrestricted
14,811,823
20,484,971
18,547,700
25,064,227
Total Primary Government Net
Position
$
124,156,082
$
129,180,035
$
136,951,508
$
151,933,063
86
TABLE 1
Fiscal Year
2015 2016 2017 2018 2019 2020
$ 68,125,738 $ 74,237,004 $ 84,537,238 $ 89,266,885 $ 89,869,766 $ 88,959,102
13,343,280 17,095,325 20,437,116 23,391,047 28,088,355 28,664,438
1,640,519 2,231,341 1,673,567 2,351,236 2,920,717 4,157,801
$ 83,109,537 $ 93,563,670 $ 106,647,921 $ 115,009,168 $ 120,878,838 $ 121,781,341
$ 59,625,205 $ 64,210,231 $ 70,361,035 $ 64,871,629 $ 68,271,075 $ 75,969,319
- - 10,565,463 12,626,526 13,232,638 15,071,599
14,243,922 15,737,470 20,781,291 20,870,671 33,254,008 30,570,717
$ 73,869,127 $ 79,947,701 $ 101,707,789 $ 98,368,826 $ 114,757,721 $ 121,611,635
$ 127,750,943 $ 138,447,235 $ 154,898,273 $ 154,138,514 $ 158,140,841 $ 164,928,421
13,343,280 17,095,325 20,437,116 23,391,047 41,320,993 43,736,037
15,884,441 17,968,811 22,454,858 35,848,433 36,174,725 34,728,518
$ 156,978,664 $ 173,511,371 $ 197,790,247 $ 213,377,994 $ 235,636,559 $ 243,392,976
87
CITY OF SCHERTZ, TEXAS
CHANGE IN NET POSITION
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(UNAUDITED)
Expenses
Governmental activities:
General government
Public safety
Public environment
Parks and recreation
Cultural
Health
Administration
Interest and other fees
Total Governmental Activities Expenses
Fiscal Year
2011 2012 2013 2014
$ 8,112,954 $
7,802,092
$ 7,066,087 $
6,958,530
8,390,740
9,103,676
9,567,595
10,025,703
3,152,119
3,586,087
3,622,834
3,740,538
1,673,098
1,584,605
1,807,559
1,807,136
876,339
916,967
907,676
870,159
374,516
357,658
344,647
407,114
1,321,055
1,117,044
1,180,656
1,942,312
2,251,472
2,302,912
3,340,951
2,352,856
26,152,293
26,771,041
27,838,005
28,104,348
Business -type activities:
Water and sewer 15,280,871 16,349,967 16,954,871 17,762,116
EMS 3,659,031 3,758,425 3,959,445 4,268,125
Total Business -Type Activities Expenses 18,939,902 20,108,392 20,914,316 22,030,241
Total Primary Government Expenses
Program Revenues
Governmental activities:
Charges for services:
General government
Public safety
Public environment
Parks and recreation
Cultural
Health
Operating grants and contributions
Capital grants and contributions
Total Governmental
Activities Program Revenues
Business -type activities:
Charges for services:
Water and sewer
EMS
Capital grants and contributions
Total Business -Type Activities
Program Revenues
Total Primary Government
Program Revenues
45,092,195
1,495,563
2,815,029
524,443
228,242
39,743
717,105
2,998,115
46,879,433 48,752,321 50,134,589
2,286,488
2,216,385
541,512
279,267
36,746
764,997
1,178,573
2,230,800
2,516,547
721,222
305,932
38,149
234,084
1,531,740
1,974,637
2,536,476
917,639
309,897
32,429
220,264
5,756,456
8,818,240
7,303,968
7,578,474
11,747,798
17,073,075
17,411,568
17,696,327
19,147,872
3,564,852
3,561,114
4,459,600
4,533,753
2,175,889
828,853
1,301,235
2,809,110
22,813,816
21,801,535
23,457,162
26,490,735
31,632,056
29,105,503
31,035,636
38,238,533
Net(expense)revenue:
Governmental activities ( 17,334,053) ( 19,467,073) ( 20,259,531) ( 16,356,550)
Business -type activities 3,873,914 1,693,143 2,542,846 4,460,494
Total Primary Government Net Expense ( 13,460,139) ( 17,773,930) ( 17,716,685) ( 11,896,056)
88
TABLE 2
Fiscal Year
2015 2016 2017 2018 2019 2020
$ 6,443,227 $
10,836,712
3,876,644
2,164,604
892,194
470,468
1,845,877
2,226,635
28,756,361
18,440,959
4,719,526
23,160,485
51,916,846
1,840,547
2,603,476
794,003
325,178
26,744
336,252
5,509,530
6,557,778 $
6,253,926 $
7,421,918 $
6,534,013 $
10,310,363
12,141,968
13,061,120
13,899,278
15,448,886
16,575,191
4,147,653
4,460,540
4,930,723
5,495,192
8,825,099
2,034,964
2,859,974
2,707,292
3,022,278
3,012,134
954,871
1,004,747
1,042,085
1,119,650
1,089,564
570,204
776,494
724,780
516,890
596,288
1,954,276
3,052,102
3,067,983
3,853,255
3,419,407
2,240,783
2,355,714
2,125,687
2,196,180
2,028,065
30,602,497
33,824,617
35,919,746
38,186,344
45,856,111
18,964,445) (
17,317,357) (
24,297,877)
20,269,111
21,346,078
23,579,854
25,608,390
24,349,219
5,004,110
6,006,178
6,110,407
6,529,631
6,051,296
25,273,221
27,352,256
29,690,261
32,138,021
30,400,515
55,875,718
61,176,873
65,610,007
70,324,365
76,256,626
1,507,252
874,737
1,013,698
947,538
836,246
2,415,537
4,131,548
4,104,911
3,177,329
3,276,129
-
-
-
138,920
850,201
788,727
544,460
640,231
484,495
331,174
326,079
330,412
313,668
311,575
299,944
30,308
29,742
27,930
21,101
26,304
342,485
552,878
776,942
692,042
2,113,673
6,227,664
10,043,483
4,744,489
1,319,793
531,096
11.435.730 11.638.052 16.507.260 11.621.869 7.092.793 8.264.767
20,700,369
22,003,794
25,390,713
27,099,237
27,333,475
29,709,279
4,415,126
5,921,223
6,366,894
6,092,559
6,596,618
6,114,891
4,158,552
2,831,126
6,111,474
3,132,348
1,975,524
292,408
29,274,047
30,756,143
37,869,081
36,324,144
35,905,617
36,116,578
40,709,777
42,394,195
54,376,341
47,946,013
42,998,410
44,381,345
( 17,320,631) (
18,964,445) (
17,317,357) (
24,297,877)
( 31,093,551) (
37,591,344)
6,113,562
5,482,922
10,516,825
6,633,883
3,767,596
5,716,063
( 11,207,069) (
13,481,523) (
6,800,532) (
17,663,994)
( 27,325,955) (
31,875,281)
89
CITY OF SCHERTZ, TEXAS
CHANGE IN NET POSITION
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(UNAUDITED)
Source: City financial statements
90
Fiscal Year
2011
2012
2013
2014
General Revenues and
Other Changes in Net Position
Governmental activities:
Taxes
Ad valorem
$ 10,280,768
$ 11,298,204
$ 12,359,146
$ 12,794,172
Sales
7,054,394
7,968,212
9,637,097
10,553,382
Franchise fees
1,542,046
1,647,712
1,681,079
2,073,162
Hotel /motel
391,181
470,290
503,267
552,570
Mixed drink
33,630
28,586
30,421
39,917
Bingo
2,173
-
-
-
Investment income
48,235
60,265
54,270
43,279
Miscellaneous
316,840
621,560
505,268
180,316
Transfers
84,235
( 62,294)
25,140
( 50,000)
Total Governmental Activities
19,753,502
22,032,535
24,795,688
26,186,798
Business -type activities:
Interest and investment earnings
37,950
36,409
53,089
31,810
Miscellaneous
457,094
666,645
664,521
609,003
Transfers
( 84,235)
62,294
( 25,140)
50,000
Total Business -Type Activities
410,809
765,348
692,470
690,813
Total Primary Government
20,164,311
22,797,883
25,488,158
26,877,611
Change in Net Position
Governmental activities
2,419,449
2,565,462
4,536,157
9,830,248
Business -type activities
4,284,723
2,458,491
3,235,316
5,151,307
Total Primary Government
$ 6,704,172
$ 5,023,953
$ 7,771,473
$ 14,981,555
Source: City financial statements
90
TABLE 2
Fiscal Year
2015 2016 2017 2018 2019 2020
$ 14,139,037
10,315,125
2,263,783
563,734
43,656
56,820
197,881
( 42,235)
27,537,801
47,728
344,731
42,235
434,694
27,972,495
10,217,170
6,548,256
$ 16,765,426
$ 15,131,997
10,921,489
2,250,815
544,871
43,073
187,847
309,275
29,211
29.418.578
102,642
522,221
( 29,211)
595,652
$ 16,166,006
10, 844, 503
2,208,373
499,466
42,699
448,408
182,754
9.399
30,401,608
211,466
475,733
( 9,399)
677,800
30,014,230 31,079,408
10,454,133 13,084,251
6,078,574 11,194,625
$ 16,532,707 $ 24,278,876
91
$ 17,018,950
12,668,555
2,393,182
520,424
43,395
909,985
283,496
19.186
33,857,173
532,367
453,374
( 19,186)
966,555
34,823,728
9,559,296
7,600,438
$ 17,159,734
$ 19,151,005 $
12,506,879
2,357,150
514,679
60,518
1,470,258
984,257
( 81,525)
36,963,221
855,216
267,788
81,525
1,204,529
19, 844, 912
14,432,152
2,305,225
268,946
70,139
804,674
767,799
38,493,847
431,555
706,296
1, 137,851
38,167,750 39,631,698
5,869,670 902,503
4,972,125 6,853,914
$ 10,841,795 $ 7,756,417
CITY OF SCHERTZ, TEXAS
FUND BALANCES OF GOVERNMENTAL FUNDS
Committed Fund Balance:
Capital improvement
Total Nonspendable Fund Balance
Assigned Fund Balance:
Property replacement
Special events
Capital improvement
Historical Committee
Subsequent year's budget
Youth activities
Total Assigned Fund Balance
Unassigned Fund Balance
202,723
93,447
162,113
9,940
468,223
1,899,105
322,656
92,555
243,546
11,090
1 . 11 ��
165,000
456,034
99,770
145,167
700,971
4,206,734
31,718
31,718
694,916
31, 177
/ GV,VJJ
5,587,262
Total Governmental Funds $ 18,234,339 $ 27,154,580 $ 30,339,720 $ 27,418,729
Source: Balance Sheets - Governmental Funds in City's CAFRs.
92
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(UNAUDITED)
2011
2012
2013
2014
Nonspendable Fund Balance:
Inventory
$ 43,504 $
63,556 $
50,768 $
88,518
Prepaid items
-
2,367
754,443
21,735
Note receivable
120,080
120,080
120,080
-
Total Nonspendable Fund Balance
163,584
186,003
925,291
110,253
Restricted Fund Balance:
Police and public safety
403,799
338,118
496,890
529,264
Municipal court
459,244
527,513
646,422
628,459
PEG capital fees
317,453
409,870
456,175
489,509
Capital improvement
10,219,300
17,104,595
15,360,800
9,600,028
Debt service
117,250
227,674
517,199
625,435
Tourism development
301,517
390,561
470,250
501,996
Tree mitigation
173,999
217,600
157,659
359,205
Parks
84,329
90,718
136,647
304,655
Historical Committee & library
231,686
65,409
77,554
78,098
Economic Development Corporation
3,394,850
4,366,005
6,022,128
7,792,578
Animal control
-
-
-
-
Veterans
-
-
-
-
Scholarship
-
-
-
54,176
Total Restricted Fund Balance
15,703,427
23,738,063
24,341,724
20,963,403
Committed Fund Balance:
Capital improvement
Total Nonspendable Fund Balance
Assigned Fund Balance:
Property replacement
Special events
Capital improvement
Historical Committee
Subsequent year's budget
Youth activities
Total Assigned Fund Balance
Unassigned Fund Balance
202,723
93,447
162,113
9,940
468,223
1,899,105
322,656
92,555
243,546
11,090
1 . 11 ��
165,000
456,034
99,770
145,167
700,971
4,206,734
31,718
31,718
694,916
31, 177
/ GV,VJJ
5,587,262
Total Governmental Funds $ 18,234,339 $ 27,154,580 $ 30,339,720 $ 27,418,729
Source: Balance Sheets - Governmental Funds in City's CAFRs.
92
TABLE 3
2015
2016
2017
2018
2019
2020
$ 101,084 $
107,529 $
98,263 $
94,876 $
117,009 $
99,871
16,000
112,974
-
-
14,916
14,916
117,084
220,503
98,263
94,876
131,925
114,787
494,337
555,722
514,931
454,773
514,152
481,879
683,558
714,609
728,350
728,350
823,451
823,452
509,535
577,590
638,506
723,353
723,353
807,140
8,924,587
11,665,693
16,915,997
16,117,887
13,199,763
7,003,243
847,178
1,311,577
1,450,082
1,099,858
1,002,226
785,919
848,969
1,186,062
1,503,873
1,846,947
2,214,865
2,116,464
331,149
340,386
331,913
431,805
433,406
463,228
341,551
441,606
367,812
374,161
290,670
292,236
76,787
75,420
77,137
84,818
89, 104
88,749
9,821,747
12,227,179
15,069,421
17,811,968
21,777,256
21,018,626
-
18,667
35,660
35,660
33,408
33,408
-
4,985
4,796
4,796
2,109
2,109
60,944
63,048
77,458
84,989
101,673
104,156
22,940,342
29,182,544
37,715,936
39,799,365
41,205,436
34,020,609
-
342,519
454,376
454,376
687,779
4,759,722
-
342,519
454,376
454,376
687,779
4,759,722
785,005
752,503
854,198
854,198
891,321
891,319
6,657
6,743
-
-
-
-
-
-
-
2,226,359
4,689,305
1,081,160
791,662
759,246
854,198
3,080,557
5,580,626
1,972,479
7,280,240
8,509,467
9,976,169
12,548,013
9,228,612
10,126,057
$ 31,129,328 $
39,014,279 $
49,098,942 $
55,977,187 $
56,834,378 $
50,993,654
w
CITY OF SCHERTZ, TEXAS
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(UNAUDITED)
Revenues
Taxes
Permits and fees
Service fees
Fines and fees
Intergovernmental
Other revenue
Total Revenues
Expenditures
Current:
General government
Public safety
Public environment
Parks and recreation
Cultural
Health
Administration
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Bond issue costs
Payment to refund agent
Total Expenditures
Excess of Revenues Over (Under)
Expenditures
Other Financing Sources (Uses)
Bond & debt issuances
Refunding bond issuance
Premium (discount) on bond issue
Payment to refund agent
Transfer in
Transfer out
Net Other Financing Sources (Uses)
Net Change in Fund Balances
Debt Service as a Percentage of
Noncapital Expenditures
2011 2012 2013 2014
$ 19,309,675 $ 21,401,991 $ 24,181,863 $ 26,021,730
1,776,292
1,363,461
1,609,954
1,805,047
1,645,489
1,547,007
1,739,387
1,763,964
1,452,610
2,027,613
1,927,744
1,750,311
1,216,211
1,000,413
492,332
221,769
603,498
969,921
767,110
671,731
26,003,775
28,310,406
30,718,390
32,234,552
7,164,667
7,094,834
6,311,276
5,981,439
7,885,119
8,690,849
9,113,840
9,409,894
846,150
976,327
951,528
1,012,607
1,195,171
1,398,692
1,412,329
1,338,232
937,611
845,124
840,595
815,691
360,746
346,318
341,961
394,918
1,506,831
1,249,557
1,289,078
2,270,041
2,956,511
1,299,843
3,277,397
8,000,467
2,371,070
2,704,898
3,217,325
3,695,597
2,066,221
2,313,510
2,381,171
2,108,610
244,237
254,971
31,750
165,650
27,534,334
27,174,923
29,168,250
35,193,146
( 1,530,559)
8,206,572
283,000
348,846
( 264,611)
8,573,807
$ 7,043,248
17.4%
1,135,483
14,370,000
175,473
( 6,698,421)
139,635
( 201,929)
7,784.758
$ 8,920,241
19.5%
1,550,140 ( 2,958,594)
1,635,000
788,084
( 788,084)
1,635,000
$ 3,185,140
21.6%
8,583,715
686,137
( 9,182,250)
1,243,833
( 1,293,832)
37,603
$( 2,920,991)
Source: Statement of Revenues, Expenditures, and Changes in Fund Balance for Governmental Funds.
94
21.3%
2015 2016 2017 2018 2019
$ 27,348,297 $ 28,865,727 $ 29,720,578 $ 32,632,702 $ 34,590,008 $
1,731,302
1,493,336
2,540,045
2,557,056
1,635,461
1,797,151
1,789,321
2,132,299
2,159,193
2,070,293
1,534,588
1,441,474
1,217,621
1,049,989
953,614
393,607
401,494
397,073
609,131
1,057,681
689,805
1,741,436
1,897,153
1,761,285
2,454,515
33,494,750
35,732,788
37,904,769
40,769,356
42,761,572
TABLE 4
rS I
36,802,913
1,807,264
2,583,598
880,657
951,604
1,572,473
44,598,509
5,582,441
5,657,998
5,394,918
6,327,133
5,881,647
10,364,369
10,158,401
11,048,767
11,870,636
12,728,222
13,985,443
15,366,593
952,663
1,007,326
1,128,979
1,136,052
1,112,041
1,270,894
1,658,197
1,528,356
1,885,915
1,697,872
2,393,487
2,102,083
821,146
869,162
921,870
955,153
1,018,109
1,044,891
404,008
480,175
672,934
628,054
498,871
589,616
2,056,646
2,015,573
2,912,855
3,015,239
3,795,233
3,353,634
2,314,668
10,192,398
5,492,196
7,708,625
9,083,572
9,276,886
3,918,008 4,040,975 4,473,174 4,744,116
2,112,746 1,896,911 2,113,679 2,099,190
7,992 449,358 214,280 129,417
G 7,7V V,71V J7,1VV,777 J /,VV 1,`tJV `T 1,1V7,V /J
4,565,000
2,069,215
189,082
5,489,912
50,081,612
4,929,544
2,136,523
4,200
J V,`TJ 7, GJJ
3,507,834
( 3,454,211)
823,333
( 399,717) (
7,320,040)
( 5,840,724)
245,000
10,750,000
8,870,000
4,887,829
4,620,000
-
-
4,185,000
-
6,035,000
5,225,000
-
-
590,432
381,931
269,212
640,115
-
-
( 4,215,482)
-
( 6,159,623)
-
-
989,120
863,583
438,803
777,487
120,503
4,500,169
( 1,031,355)
( 834,371)
( 429,404)
( 758,302) (
202,028)
( 4,500,169)
202,765
11,339,162
9,261,330
5,051,603
10,403,590
-
$ 3,710,599
$ 7,884,951
$ 10,084,663
$ 4,651,886 $
3,083,550
$( 5,840,724)
21.3%
20.5%
20.4%
22.2%
17.3%
16.2%
m
CITY OF SCHERTZ, TEXAS
GOVERNMENTAL FUNDS TAX REVENUES BY SOURCE
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(UNAUDITED)
Fiscal Property Sales & Use Franchise
Year Tax Tax Tax
Mixed
Beverage
2011
$ 10,286,251
$ 7,054,394
$ 1,542,046 $
33,630
2012
11,287,191
7,968,212
1,647,712
28,586
2013
12,329,999
9,637,097
1,681,079
30,421
2014
12,802,668
10,553,382
2,073,162
39,917
2015
14,161,999
10,315,125
2,263,783
43,553
2016
15,105,480
10,921,489
2,250,815
43,072
2017
16,125,537
10,844,503
2,208,373
42,668
2018
17,007,148
12,668,555
2,393,182
43,384
2019
19,150,782
12,506,879
2,357,150
60,518
2020
19,726,451
14,432,152
2,305,225
70,139
M
Hotel
TABLE 5
Bingo
Occupancy
Total
$ 2,173
$ 391,181
$ 19,309,675
-
470,290
21,401,991
-
503,267
24,181,863
31
552,570
26,021,730
103
563,734
27,348,297
1
544,870
28,865,727
31
499,466
29,720,578
11
520,424
32,632,704
24
514,679
34,590,032
24
268,946
36,802,937
97
Fiscal
Year
Ended
September 30,
2020
2019
2018
2017
2016
2015
2014
2013
2012
3011
CITY OF SCHERTZ, TEXAS
TOTAL WATER AND SEWER CONSUMPTION AND RATES
LAST TEN FISCAL YEARS
Total Water &
Sewer Consumption
(In Gallons)
1,982,664,200
1,622,930,500
1,583,312,400
1,583,462,300
1,509,250,000
1,472,948,300
1,543,351,600
1,550,039,700
1,604,952,300
1,676,323,900
98
Water&
Sewer
Base Rate
]8.15
37.15
35.61
34.]5
30.11
26.54
24.38
22.69
22.69
22.69
TABLE 6
Water &Sewer
Initial Rate Per
1.000 Gallons
6.97
6.84
6.53
6.21
5.73
E43
5.17
4.84
4.84
4.75
CITY OF SCHERTZ, TEXAS TABLE 7
PRINCIPAL WATER AND SEWER CONSUMERS
LAST TEN FISCAL YEARS
2020 2011
99
Total
Percentage of
Total
Percentage of
Water
Total City
Water
Total City
Consumption
Water
Consumption
Water
TAXPAYERS
(In Gallons)
Rank
Consumption
(in Gallons)
Rank
Consumption
Caterpillar Inc.
169,429,600
1
8.55%
Beck Readymix Concrete
117,018,500
2
5.90%
87,304,700
1
Sycamore Creek Apartments
113,447,200
3
5.72%
0.00%
SA WFR Partners, LLC
84,070,100
4
4.24%
60,814,100
2
4.94%
IPT San Antonio Logistics CTR
82,032,700
5
4.14%
Sebastian Apartments
76,545,800
6
3.86%
35,899,500
3
2.92%
Val Verde 6561
66,374,900
7
3.35%
27,988,600
5
Sysco / Cooling Tower
65,618,600
8
331%
0.00%
Legacy Oaks Apartments
64,797,000
9
3.27%
Pecan Grove TXLLC
61,635,700
10
3.11%
24,208,400
6
1.97%
Wal -Mart Supermarket #3391 spk
23,437,100
7
1.90%
Sedona Master Community, INC
29,971,700
4
2.43%
Lowe's Home Improvement Warehouse
22,409,900
8
1.82%
CCMA
22,123,100
9
1.80%
20,585,900
10
1.67%
TOTAL
900,970,100
45.44%
354,743,000
19.45%
Total City Water Consumption
1,982,664,200
1,231,376,600
99
CITY OF SCHERTZ, TEXAS TABLE 8
DIRECT AND OVERLAPPING PROPERTY TAX RATES
LAST TEN FISCAL YEARS
(UNAUDITED)
100
City Direct
Rates
Overlapping
School Districts
Schertz-
Cibolo-
Fiscal
Basic
Debt
Universal
Comal
Year
Rate
Service
Total
City ISD
ISD
2020
0.3496
0.1650
0.5146
1.4200
1.3200
2019
0.3497
0.1649
0.5146
1.4900
1.3200
2018
0.3248
0.1662
0.4910
1.4900
1.3900
2017
0.3168
0.1743
0.4911
1.4700
1.3900
2016
0.3159
0.1752
0.4911
1.4900
1.3900
2015
0.3164
0.1810
0.4974
1.4900
1.3900
2014
0.3010
0.1964
0.4974
1.4900
1.4300
2013
0.2993
0.2006
0.4999
1.4600
1.4300
2012
0.2993
0.1850
0.4843
1.4350
1.4300
2011
0.2993
0.1500
0.4493
1.4350
1.3700
Overlapping
Counties
Bexar
Corral
Guadalupe
Community
Fiscal
Hospital
River
College
Year
County
District
Authority
District
County
County
2020
0.2774
0.2762
0.0186
0.1492
0.3224
0.3319
2019
0.2774
0.2762
0.0186
0.1492
0.2952
0.3319
2018
0.2928
0.2762
0.0173
0.1492
0.3078
0.3799
2017
0.2928
0.2762
0.0173
0.1492
0.2928
0.3851
2016
0.2929
0.2762
0.0173
0.1492
0.2929
0.3851
2015
0.2929
0.2762
0.0178
0.1492
0.2929
0.3941
2014
0.2782
0.2762
0.0174
0.1492
0.2782
0.3999
2013
03052
0.2762
0.0174
0.1416
0.3504
0.4036
2012
03269
0.2762
0.0167
0.1416
0.3340
0.4036
2011
03269
0.2662
0.0160
0.1359
0.3130
0.3999
100
CITY OF SCHERTZ, TEXAS TABLE 9
PRINCIPAL PROPERTY OF TAX PAYERS
CURRENT YEAR AND NINE YEARS AGO
2020 2011
101
Percentage
Percentage
of
of
Total City
Total City
Taxable
Taxable
Taxable
Taxable
Assessed
Assessed
Assessed
Assessed
Taxpayer
Value
Rank
Value
Value
Rank
Value
Caterpillar Inc.
$ 120,824,839
1
2.91%
SYSCO San Antonio, Inc.
107,425,724
2
2.59%
Amazon Com Services Inc
74,629,384
3
1.80%
US Real Estate LP
59,963,917
4
1.44%
Rebublic Beverage Company
58,711,000
5
1.41%
$ 51,762,770
1
2.21%
Colfin 2018 -3 Industrial Owner LLC
57,353,060
6
1.38%
Shell US Gas and Power LLC
37,942,000
7
0.91%
SA WFR Partners LLC
25,352,359
8
0.61%
EM Limited Partnership
22,655,200
9
0.55%
9,857,599
9
0.42%
GE Oil & Gas INC
19,515,060
10
0.47%
AOH- Vantage at Schertz LLC
17,367,333
2
0.74%
San Antonio MTA LP
17,153,935
3
0.73%
Wal -Mart Real Estate Business Trust
14,529,843
4
0.62%
City Bank
14,108,720
5
0.60%
Eye Care Centers of America Inc.
13,293,056
6
0.57%
H.E.Butt Grocery Co.
12,040,678
7
0.51%
Atlantic Financial Group LTD
10,313,859
8
0.44%
Lowe's Home Center Inc.
8,284,756
10
0.35%
TOTALS
$ 584,372,543
14.07%
$ 168,712,549
7.20%
TOTAL TAXABLE
ASSESSED VALUE
$ 4,152,459,607
$ 2,342,355,490
101
THIS PAGE LEFT BLANK INTENTIONALLY
CITY OF SCHERTZ, TEXAS TABLE 10
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(UNAUDITED)
102
Collected Within
Total Collections
Fiscal Year
Taxes Levied
Fiscal Year
of Levy
Collections In
To Date
Ended
for the
% of
Subsequent
% of
September 30,
Fiscal Year
Amount
Levy
Years
Amount
Levy
2020
$ 20,854,329
$ 20,758,493
99.54%
-
$ 20,758,493
99.54%
2019
19,922,568
19,825,244
99.51%
68,692
19,893,936
99.86%
2018
18,010,824
17,899,825
99.38%
85,062
17,984,887
99.86%
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
99M%
2015
14,793,867
14,738,760
99.63%
44,730
14,783,490
99.93%
2014
13,383,759
13,297,258
99.35%
68,412
13,365,670
99.86%
2013
12,536,540
12,455,336
99.35%
71,432
12,526,768
99.92%
2012
11,239,572
11,159,974
99.29%
71,740
11,231,714
99.93%
2011
9,978,430
9,895,240
99.17%
74,770
9,970,010
99.92%
102
CITY OF SCHERTZ, TEXAS
TAXABLE ASSESSED VALUE
LAST TEN FISCAL YEARS
(UNAUDITED)
Fiscal
Year Taxable
Ended Value Residential Commercial
September 30, January 1, Property Property
2020
2019
$ 3,004,686,341
$ 1,613,615,732
2019
2018
2,860,333,982
1,401,636,211
2018
2017
2,049,067,806
2,344,365,139
2017
2016
1,895,085,016
2,269,590,522
2016
2015
1,702,601,947
2,087,223,204
2015
2014
1,568,651,309
1,793,803,709
2014
2013
1,445,731,509
1,540,565,195
2013
2012
1,383,423,359
1,396,349,905
2012
2011
1,337,223,390
1,233,687,039
2011
2010
1,272,970,256
1,253,600,729
*Taxable Assessed Value is before any applicable freeze adjustments.
Source: Bexar, Comal and Guadalupe County Appraisal Districts.
103
TABLE 11
104
Total Taxable
Total
Tax - Exempt
Other
Assessed
Direct
Property
Property
Value*
Tax Rate
$( 716,028,336) $
250,185,870
$ 4,152,459,607
0.5146
( 621,773,006)
260,571,835
3,900,769,022
0.5146
( 757,265,921)
146,860,809
3,647,504,903
0.4911
( 649,173,041)
132,002,406
3,375,850,131
0.4911
( 544,328,535)
130,353,515
3,037,267,611
0.4974
( 460,271,461)
135,084,054
2,752,562,574
0.4974
( 340,747,650)
107,013,520
2,600,365,551
0.4999
( 285,245,142)
105,837,429
2,411,270,623
0.4843
( 262,591,896)
102,952,090
2,363,893,708
0.4493
( 280,015,063)
117,337,786
2,342,355,490
0.4342
104
Fiscal
Year
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
CITY OF SCHERTZ, TEXAS
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Governmental Activities
General
Certificates
Certificates
Obligation
of
Tax
Bonds
Obligation
Notes
$ 46,223,908
$ 15,801,473
$ 345,000
49,960,772
16,834,029
530,000
52,752,896
13,636,966
7151000
56,613,614
9,011,415
1,230,000
56,352,272
4,057,189
1,740,000
53,410,128
277,801
1,210,000
56,487,433
543,934
1,585,000
58,693,750
801,767
2,155,000
60,878,759
1,581,300
1901000
48,035,253
8,615,077
250,000
105
Certificates
Capital
Revenue
of
Lease
Bonds
Obligation
$ 17,134
$ -
$ 12,067,332
25,699
-
12,919,712
34,264
-
13,211,178
25,147
-
8,174,779
58,321
-
8,331,966
91,495
-
8,946,153
123,370
-
9,561,204
22,398
2,215,000
5,048,233
60,190
2,342,656
5,383,700
97,188
2,476,681
5,704,200
TABLE 12
Business -Type
Public
Facility
Loan
Activities
General
Obligation
Bonds
Capital
Lease
Tax
Notes
Total
Primary
Government
Percent
of Gross
Income
Per
Capita
$ -
$ 3,951,449
$ 132,468
$ 150,000
$ 78,688,764
5.60%
1,841
-
4,727,188
199,421
460,000
85,656,821
5.60%
2,042
-
2,127,657
289,553
765,000
83,532,514
5.98%
2,028
-
2,533,626
92,721
1,065,000
75,076,605
6.22%
1,996
-
3,014,595
162,262
1,360,000
75,076,605
6.39%
1,979
-
3,490,564
231,803
1,640,000
69,297,944
5.99%
1,830
-
3,966,533
347,705
65,000
72,680,179
6.35%
1,992
-
2,127,502
-
130,000
71,193,650
6.50%
1,982
-
2,413,471
-
190,000
73,040,076
8.15%
2,117
-
2,684,440
-
250,000
68,112,839
8.01%
2,031
106
CITY OF SCHERTZ, TEXAS TABLE 13
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
General Bonded Debt Outstanding
Percentage of
General Certificates Amounts Actual Taxable
Fiscal Obligation of Available for Value of Per
Year Bonds Obligation Debt Service Total Property Capita
2020
$ 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
2011
50,719,693
8,615,077 (
286,215)
59,048,555
2.52%
2,231
107
CITY OF SCHERTZ, TEXAS
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
CURRENT YEAR
Estimated
Debt Percentage
Governmental Unit Outstanding Applicable*
Debt repaid with property taxes:
LZ'L' -ice',
Estimated
Share of
Overlapping
Debt
Alamo CCD
$ 437,790,000
0.30% $
1,313,370
Bexar County
1,944,900,000
0.30%
5,834,700
Bexar County Hospital District
932,030,000
0.30%
2,796,090
Comal County
140,350,000
4.31%
6,049,085
Comal ISD
722,510,179
4.42%
31,934,950
Guadalupe County
9,405,000
20.03%
1,883,822
Schertz - Cibolo- Universal ISD
397,644,650
48.57%
193 136,006
Subtotal, Overlapping Debt
City Governmental Activities Direct Debt
TOTAL NET OVERLAPPING DEBT
242,948,022
62,387,515
$
305,335 537
NOTES: The overlapping debt was received from the Municipal Advisory Council of Texas. Details regarding
the City's outstanding debt can be found in the notes to the basic financial statements.
Overlapping debt is the proportionate share of the debts of local jurisdictions located wholly or in part within
the limits of the City of Shertz. This schedule is intended to demonstrate the total debt that the City of
Shertz property tax payers will be expected to repay. The amount of debt applicable to the City of Schertz is
computed by (a) determining what portion of total assessed value of the overlapping jurisdiction lies within
the limits of the City and (b) applying this percentage to the total governmental activities debt of the
overlapping jurisdiction.
108
Assessed Value, 2019 Tax Roll
Debt Limit - Texas statues do not
provide a legal debt limit for cities;
however, through accepted practice a
practical "economic" debt limit is
considered to be 10% of the assessed
value.
Amount of Applicable Debt:
General Bonded Debt
Less Debt Service Net Position
DEBT MARGIN
Total Net Debt as a Percentage
of Debt Margin
CITY OF SCHERTZ, TEXAS
DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
TABLE 15
$ 4,152,459,607
$ 415,245,961
$ 62,370,381
( 1,051,874) 61,318,507
$ 353,927,454
17.33%
109
Fiscal Year
2016
2017
2018
Assessed Value
$
3,375,850,131
$
3,647,504,903
$
3,783,027,833
Debt Limit
337,585,013
364,750,490
378,302,783
Total Net Debt Applicable to Limit
61,181,169
65,792,916
66,329,699
Total Debt Margin
$
276,403,844
$
298,957,574
$
311,973,084
2013
2014
2015
Assessed Value
$
2,600,365,551
$
2,752,562,574
$
3,037,267,611
Debt Limit
260,036,555
275,256,257
303,726,761
Total Net Debt Applicable to Limit
60,499,568
56,803,499
53,424,303
Total Debt Margin
$
199,536,987
$
218,452,758
$
250,302,458
2010
2011
2012
Assessed Value
$
2,363,893,708
$
2,411,270,623
$
2,600,365,551
Debt Limit
236,389,371
241,127,062
260,036,555
Total Net Debt Applicable to Limit
55,298,550
60,973,626
60,499,568
Total Debt Margin
$
181,090,821
$
180,153,436
$
199,536,987
109
CITY OF SCHERTZ, TEXAS TABLE 16
PLEDGED REVENUE COVERAGE
LAST TEN FISCAL YEARS
NOTE: Details regarding the City's outstanding debt can be found in the notes to the basic financial
statements. Operating expenses do not include the depreciation, interest, or amortization expenses.
110
Water Revenue Bonds
Utility
Less:
Net
Debt Service
Fiscal
Service
Operating
Available
Year
Charges
Expenses
Revenue
Principal
Interest
Coverage
2020 $
29,735,911
$ 24,032,772
5,703,139 $
1,961,953
$ 612,643
2.22
2019
27,246,250
22,622,986
4,623,264
1,845,132
561,880
1.92
2018
27,099,237
20,802,263
6,296,974
1,671,134
391,609
3.05
2017
25,390,713
18,697,162
6,693,551
1,554,541
368,390
3.48
2016
22,003,794
17,603,487
4,400,307
1,441,741
417,346
2.37
2015
20,700,369
15,916,597
4,783,772
1,448,407
428,912
2.55
2014
19,147,872
15,246,653
3,901,219
1,010,500
426,100
2.72
2013
17,696,327
14,553,274
3,143,053
728,800
359,680
2.89
2012
17,411,568
14,185,126
3,226,442
697,100
396,968
2.95
2011
16,843,780
13,229,037
3,614,743
577,824
409,801
3.66
NOTE: Details regarding the City's outstanding debt can be found in the notes to the basic financial
statements. Operating expenses do not include the depreciation, interest, or amortization expenses.
110
Sources: Population, personal income, median age and education level informaiton provided by City
Economic Development Corporation. School enrollment provided by Schertz- Cibolo- Universal City
Independent School District. Unemployment data provided by Texas Workforce Commission.
111
CITY OF SCHERTZ, TEXAS
TABLE 17
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL
YEARS
Education
Per Capita
Level in
Fiscal
Personal
Personal
Median
Years of
School
Unemployment
Year
Population
Income
Income
Age
Schooling
Enrollment
Rate
2020
42,734 $
1,680,129,944
$ 39,316
37.4
16.2
15,675
5.1%
2019
41,948
1,473,255,708
35,121
38.0
16.2
15,925
2.7%
2018
41,182
1,396,481,620
33,910
37.3
15.9
15,817
3.2%
2017
39,453
1,266,046,770
32,090
37.2
15.9
15,497
3.8%
2016
37,938
1,175,319,240
30,980
36.9
15.8
15,460
3.4%
2015
37,865
1,157,835,970
30,578
36.1
15.6
15,009
3.2%
2014
36,477
1,144,465,875
31,375
36.9
15.4
14,515
5.1%
2013
35,929
1,095,331,494
30,486
37.1
15.4
14,058
5.5%
2012
34,499
895,739,206
25,964
36.8
15.4
13,016
5.6%
2011
33,544
850,069,800
25,342
37.8
15.4
12,533
5.7%
Sources: Population, personal income, median age and education level informaiton provided by City
Economic Development Corporation. School enrollment provided by Schertz- Cibolo- Universal City
Independent School District. Unemployment data provided by Texas Workforce Commission.
111
CITY OF SCHERTZ, TEXAS
TOP TEN PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
TABLE 18
Source: City Economic Development Corporation
112
2020
2011
Percentage
Percentage
of Total City
of Total City
Employer
Employees
Employment
Employees
Employment
Amazon
2,000
10.67%
1,615
10.39%
Schertz-Cibolo- Universal City ISD
1,953
10.42%
Sysco
783
4.18%
Fed Ex Ground
600
3.20%
220
1.42%
Republic National Distributing Company
569
3.04%
Brandt Companies
408
2.18%
320
2.06%
City of Schertz
404
2.16%
120
0.77%
FedEx Freight
325
1.73%
Hollingsworth
262
1.40%
154
0.99%
Caterpillar
191
1.02%
Builders First Source
140
0.75%
Quality Custom Distribution
130
0.69%
120
0.77%
Manco
91
0.49%
350
2.25%
Wal -mart Stores
321
2.07%
EyeCare Centers of America
300
1.93%
H.E.B Grocery Co.
200
1.29%
Valero Energy
-
125
0.80%
Theis Distributing Co.
TOTAL
7,856
41.93%
3,845
24.74%
Source: City Economic Development Corporation
112
CITY OF SCHERTZ, TEXAS
FULL -TIME EQUIVALENT CITY GOVERNMENTAL EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
113
Full -Time Equivalent
Employees
as of September 30,
Function
2011
2012
2013 2014
General Government
City Manager
6
7
7
6
Court Support
-
-
-
-
Municipal Court
5
6
6
6
Customer Relations
5
5
5
5
Planning and Zoning
4
3
3
3
General Services
15
15
13
13
City Secretary
2
2
2
2
Public Affairs
3
4
4
4
Records Management
1
1
1
1
Schertz Magazine
2
2
2
2
Engineer
2
4
3
3
GIS
2
2
2
2
Information Technology
4
4
6
6
Human Resources
4
4
4
4
Finance
6
6
6
6
Purchasing
5
5
4
3
Fleet Service
4
4
4
4
Building Maintenance
-
-
2
2
Facility Services
-
-
-
-
Public Safety
Police
65
70
75
75
Fire
32
32
32
33
Inspections
7
7
7
8
Marshal Services
8
8
8
8
Health
Animal Control
6
6
6
7
Environmental Health
-
-
-
-
Parks and Culture
Parks
9
9
9
9
Pools
-
-
-
-
Event Facilities
1
1
1
1
Library
14
14
14
14
Public Environment
Streets
14
14
14
14
Public Works
Public Works
4
4
6
6
Business Office
10
10
10
10
Water and Sewer
17
17
16
16
Drainage
7
7
8
8
EMS
34
35
35
36
Economic Development
3
4
4
4
TOTAL
299
311
318
320
113
TABLE 19
Full -Time Equivalent Employees as of September 30,
2015 2016 2017 2018 2019 2020
6
5
5
5
5
5
6
6
6
6
4
4
5
5
5
5
3
3
3
4
4
4
3
3
13
-
-
-
-
-
2
2
2
2
2
2
4
4
4
5
5
5
1
1
1
-
-
-
2
2
2
-
-
-
3
7
7
7
7
8
2
2
2
2
2
2
6
6
7
8
8
8
4
5
5
5
5
5
8
8
8
8
7
7
3
3
3
3
3
3
6
6
6
6
7
8
3
-
-
-
-
-
-
16
16
17
10
10
75
78
81
86
86
87
33
36
39
45
45
46
9
8
8
11
12
12
8
8
5
-
-
-
7
8
8
7
7
8
-
3
3
4
4
4
9
9
10
12
11
11
1
1
1
1
5
5
14
14
14
15
14
14
14
14
14
14
14
17
6
4
4
4
4
4
10
10
10
10
9
9
16
16
16
19
19
19
8
6
6
8
8
8
37
39
41
45
45
45
4
4
4
4
4
4
327
339
346
366
357
365
114
CITY OF SCHERTZ, TEXAS
OPERATING INDICATORS BY FUNCTION /PROGRAM
LAST TEN FISCAL YEARS
115
Fiscal Year
Function
2011
2012
2013
2014
General Government
Building Permits Issued
4,950
2,643
3,054
2,869
Schertz Tales
Number of Magazines Printed
168,000
168,000
168,000
180,000
Police
CFS
26,205
19,434
19,894
19,067
Arrests
762
666
800
776
Traffic Violations
13,231
20,881
19,335
15,077
Accidents
1,575
1,665
1,960
1,823
Fire
Number of Rescue /Other Responses
1,657
1,799
2,046
1,759
Number of Fire Responses
110
74
108
110
Number of Inspections
616
429
332
252
Number of Training Classes Conducted
142
168
132
125
Number of Pre -Plan Inspections
536
714
729
735
EMS
Requests for Transport
7,443
7,545
8,391
8,840
Actual Transports
4,801
4,766
5,451
5,713
EMT Students
85
79
116
87
Marshal Service
Warrants Issued
4,141
2,888
3,344
2,354
Warrants Cleared
3,985
4,118
4,687
3,781
Food Establishment Permits
118
123
127
82
Food Establishment Inspection
244
180
281
218
Foster /Adoption Inspections
18
14
24
16
Parks
Facility Reservations
237
234
258
301
Community and Civic Centers
Civic Center
354
325
444
458
Community Center Rentals
666
816
735
437
North Community Center Rentals
241
307
288
244
115
Fiscal Year
2015 2016 2017
3,087
5,919
4,800
180,000
180,000
180,000
36,138
39,064
34,428
595
603
423
12,306
8,960
8,001
2,040
2,119
2,057
2,167
2,327
2,758
99
67
86
698
440
519
150
460
340
980
867
922
9,286
9,723
9,956
6,118
6,123
6,201
84
89
90
3,798
2,587
2,816
3,691
3,492
2,822
135
145
201
136
153
13
22
21
21
275
240
251
478
483
590
455
370
455
209
185
230
116
TABLE 20
2018 2019 2020
5,251
4,748
2,993
180,000
180,000
187,500
45,190
41,327
57,149
624
603
527
11,359
12,541
8,326
2,244
2,304
1,752
3,055
3,804
3,953
161
100
108
562
528
30
600
804
763
788
865
814
10,059
10,759
10,713
6,165
6,738
6,549
90
90
84
1,598
2,036
1,738
2,022
1,834
664
181
55
189
211
96
209
18
8
10
248
241
75
516
441
293
381
326
193
235
188
92
CITY OF SCHERTZ, TEXAS
OPERATING INDICATORS BY FUNCTION /PROGRAM
LAST TEN FISCAL YEARS
Function
Animal Services
Number of Animals Handled
Number of Adoptions
Number of Return to Owners
Number of Transfers
Library
Annual Circulation
Library Visits
Library Program Attendance
Registered Users
Water
New Connections
Water Main Breaks
Total Consumption
(Thousands of Gallons)
Daily Average Consumption
(Thousands of Gallons)
Peak Daily Consumption
(Thousands of Gallons)
Total Customers
Average Use Per Connection
Sewer
Total Customers
Facilities Maintenance
Number of Buildings Maintained
Square Footage
Fiscal Year
2011 2012 2013 2014
1,802
1,463
1,326
1,218
257
291
362
309
313
149
231
222
300
312
301
316
414,074
410,312
404,691
395,998
254,934
256,349
254,633
253,237
13,767
16,035
12,581
15,048
28,589
30,475
31,658
30,759
439
271
168
235
76
52
38
45
16,763,239
16,131,415
15,500,413
15,497,071
45,927
44,196
42,466
42,458
11,000
9,290
9,483
10,089
12,234
12,557
12,757
13,324
5,725
5,517
5,905
5,467
10,907
10,988
11,456
11,578
19
19
19
19
166,591
166,591
166,591
166,591
117
TABLE 20
Fiscal Year
2015
2016
2017
2018
2019
2020
1,304
1,313
1,283
926
1,157
1,015
357
410
348
319
366
450
213
205
228
218
233
335
296
316
326
297
227
188
394,766
399,622
385,206
414,790
447,379
254,643
259,413
255,109
235,428
258,695
237,821
102,297
13,825
15,282
16,814
16,945
18,412
6,524
31,138
30,702
31,432
30,806
33,104
31,296
369
213
303
235
300
357
45
45
45
50
52
65
14,757,134
16,097,931
15,222,373
15,833,124
17,602,330
1,976,687
40,431
43,942
41,705
43,378
48,225
54,155
8,385
10,985
11,000
9,083
11,094
14,011
13,570
13,877
14,124
14,678
16,434
13,683
5,135
5,352
5,244
5,294
4,587
5,600
11,413
12,282
12,398
12,866
12,853
13,112
21
21
21
25
26
27
234,202
234,202
234,202
245,218
257,218
301,656
118
CITY OF SCHERTZ, TEXAS
CAPITAL ASSET STATISTICS BY FUNCTION /PROGRAM
LAST TEN FISCAL YEARS
Fiscal Year
Function
2011
2012
2013
2014
Police
10
10
11
11
Stations
1
1
1
1
Patrol Units
42
42
42
42
Fire
3
3
3
3
Stations
2
2
2
2
Training Facility
-
-
-
-
Fire Vehicles
13
13
13
15
EMS
Ambulances
6
6
7
7
Marshal Service
Vehicles
8
8
7
7
Streets
Streets, Paved (Miles)
132
134
137
141
Streets, Unpaved (Miles)
5
5
5
5
Parks and Recreation
Parks - Developed
17
17
13
13
Parks - Undeveloped
4
4
8
8
Playground
15
15
16
16
Swimming Pools
2
2
2
2
Baby Pools
2
2
2
2
Baseball /Softball Diamonds
9
9
12
12
Soccer Fields
12
12
12
12
Community Centers
4
4
4
4
Animal Control
Control Vehicle
3
3
3
3
Library
Facility
1
1
1
1
Volumes in Collection
73,904
81,468
86,221
100,478
Water
Number of Reservoirs
-
-
-
-
Number of Pump Stations
5
5
5
5
Water Mains (Miles)
192
192
197
199
Sewer
Sanitary Sewers (Miles)
84
85
87
90
Storm Sewers (Miles)
10
10
11
11
Facilities Maintenance
Vehicles
5
4
5
5
Generators
3
3
3
3
119
TABLE 21
Fiscal Year
2015
2016
2017
2018
2019
2020
1
1
1
1
1
1
48
50
64
69
68
72
2
2
2
3
3
3
-
-
-
-
0
0
16
16
16
18
19
20
9
9
8
8
9
9
7
7
7
7
7
7
149
153
159
153
165.4
165
5
5
5
5
5
5
14
15
20
21
21
9
10
4
4
4
21
18
19
19
19
20
4
2
2
4
4
4
21
2
2
2
2
2
4
15
15
15
15
15
2
12
12
12
12
12
15
4
4
4
4
4
12
4
3
4
3
4
4
6
1
1
1
1
1
1
113,085
97,412
107,382
110,266
150,972
139,447
-
-
-
0
0
0
5
5
5
5
5
6
210
211
221
225
228
228.5
96
98
110
113
116
116.2
12
12
12
13.6
13.8
13.8
6
6
6
11
11
10
4
4
4
7
10
7
120
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