23-R-19 ACFR-Annual Comprehensive Financial Report FY2021-2022RESOLUTION NO. 23-R-19
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF
SCHERTZ, TEXAS AUTHORIZING THE APPROVAL OF THE ANNUAL
COMPREHENSIVE FINANCIAL REPORT FOR FISCAL YEAR 2021-22,
AND OTHER MATTERS IN CONNECTION THEREWITH
WHEREAS, the City staff of the City of Schertz (the "City") has recommended that the
City Council approve the Annual Comprehensive Financial Report for Fiscal Year 2021-22; and
WHEREAS, the Audit Committee has recommended that it is in the best interest of the
City to approve the Annual Comprehensive Financial Report for Fiscal Year 2021-22; and
WHEREAS, the City Council has determined that it is in the best interest of the City to
approve the Annual Comprehensive Financial Report for Fiscal Year 2021-22.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
SCHERTZ, TEXAS THAT:
Section 1. The City Council hereby authorizes the approval of the Annual Comprehensive
Financial Report for Fiscal Year 2021-22.
Section 2. The recitals contained in the preamble hereof are hereby found to be true, and
such recitals are hereby made a part of this Resolution for all purposes and are adopted as
a part of the judgment and findings of the City Council.
Section 3. All resolutions, or parts thereof, which are in conflict or inconsistent with any
provision of this Resolution are hereby repealed to the extent of such conflict, and the
provisions of this Resolution shall be and remain controlling as to the matters resolved
herein.
Section 4. This Resolution shall be construed and enforced in accordance with the laws of
the State of Texas and the United States of America.
Section 5. If any provision of this Resolution or the application thereof to any person or
circumstance shall be held to be invalid, the remainder of this Resolution and the
application of such provision to other persons and circumstances shall nevertheless be
valid, and the City Council hereby declares that this Resolution would have been enacted
without such invalid provision.
Section 6. It is officially found, determined, and declared that the meeting at which this
Resolution is adopted was open to the public and public notice of the time, place, and
subject matter of the public business to be considered at such meeting, including this
Resolution, was given, all as required by Chapter 551, Texas Government Code, as
amended.
Section 7. This Resolution shall be in force and effect from and after its final passage, and
it is so resolved.
PASSED AND ADOPTED, this 28 h day of February 2023.
CITY OF SCHERTZ, TEXAS
- A4 �-1
R Guf err z, Mayor
ATTEST:
Sh ' a Edmondson, City Secretary
50506221.1 - 2 -
CITY OF SCHERTZ, TEXAS
SINGLE AUDIT REPORT
FOR THE YEAR ENDED SEPTEMBER 30, 2022
CITY OF SCHERTZ, TEXAS
TABLE OF CONTENTS
SEPTEMBER 30, 2022
Page
Number
Independent Auditor's Report on Compliance for Each Major
Federal Program, and Report on Internal Control Over
Compliance in Accordance with the Uniform Guidance ................................................. 1 - 3
Independent Auditor's Report on Internal Control Over
Financial Reporting and on Compliance and Other Matters
Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards....................................................... 4 - 5
Schedule of Expenditures of Federal Awards................................................................. 6
Notes to Schedule of Expenditure of Federal Awards ...................................................... 7
Scheduleof Findings and Questioned Costs................................................................... 8
Summary Schedule of Prior Audit Findings.................................................................... 9
PATTILLO, BROWN HILL, L.L.P
401 welt State FHgh,. vay 6
V:'aco, Te,•as 76710
254,772.4901 pbhcpa.com
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR
EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER
COMPLIANCE IN ACCORDANCE WITH THE UNIFORM GUIDANCE
Honorable Mayor and
Members of City Council
City of Schertz, Texas
Report on Compliance for Each Major Federal Program
We have audited the City of Schertz, Texas' (the "City") compliance with the types of compliance
requirements described in the U.S. Office of Management and Budget (OMB) Compliance Supplement that
could have a direct and material effect on each of the City's major federal programs for the year ended
September 30, 2022. The City's major federal programs are identified in the summary of auditor's results
section of the accompanying schedule of findings and questioned costs.
In our opinion, the City complied, in all material respects, with the compliance requirements referred
to above that could have a direct and material effect on each of its major federal programs for the year ended
September 30, 2022.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America (GAAS); the standards applicable to financial audits contained in Government
Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards);
and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our
responsibilities under those standards and the Uniform Guidance are further described in the Auditor's
Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of the City and to meet our other ethical responsibilities, in
accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major
federal program. Our audit does not provide a legal determination of the City's compliance with the
compliance requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design,
implementation, and maintenance of effective internal control over compliance with the requirements of laws,
statutes, regulations, rules and provisions of contracts or grant agreements applicable to the City's federal
programs.
OFFICE LOCATIONS
TEXAS ; Waco Temple s Hillsboro I Houston
NEW MEXICO Albuquerque
111AICPA
GAQC Member
Auditor's Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the
compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion
on the City's compliance based on our audit. Reasonable assurance is a high level of assurance but is not
absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS,
Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it
exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal control. Noncompliance with the compliance requirements referred to above is considered material,
if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made
by a reasonable user of the report on compliance about the City's compliance with the requirements of each
major federal program as a whole.
In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform
Guidance, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material noncompliance, whether due to fraud or error, and design
and perform audit procedures responsive to those risks. Such procedures include examining, on a test
basis, evidence regarding the City's compliance with the compliance requirements referred to above
and performing such other procedures as we considered necessary in the circumstances.
Obtain an understanding of the City's internal control over compliance relevant to the audit in order to
design audit procedures that are appropriate in the circumstances and to test and report on internal
control over compliance in accordance with the Uniform Guidance, but not for the purpose of
expressing an opinion on the effectiveness of the City's internal control over compliance. Accordingly,
no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in
internal control over compliance that we identified during the audit.
Report on Internal Control over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal
program on a timely basis. A material weakness in internal control over compliance is a deficiency, or
combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that
material noncompliance with a type of compliance requirement of a federal program will not be prevented, or
detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a
deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance
requirement of a federal program that is less severe than a material weakness in internal control over
compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over compliance
that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal
control over compliance that we consider to be material weaknesses. However, material weaknesses may
exist that have not been identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal
control over compliance. Accordingly, no such opinion is expressed.
The purpose of this report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements of the
Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
Report on Schedule of Expenditures of Federal Awards
We have audited the financial statements of the governmental activities, business -type activities, each
major fund, and the aggregate remaining fund information of the City of Schertz, Texas, as of and for the year
ended September 30, 2022, and the related notes to the financial statements, which collectively comprise the
City's basic financial statements. We issued our report thereon dated , 2023, which contained
unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming
opinions on the financial statements that collectively comprise the basic financial statements. The
accompanying Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as
required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements,
Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and is not a required part of
the basic financial statements. Such information is the responsibility of management and was derived from
and relates directly to the underlying accounting and other records used to prepare the basic financial
statements. The information has been subjected to the auditing procedures applied in the audit of the financial
statements and certain additional procedures, including comparing and reconciling such information directly to
the underlying accounting and other records used to prepare the basic financial statements or to the basic
financial statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, the Schedule of Expenditures of Federal
Awards is fairly stated in all material respects in relation to the basic financial statements as a whole.
The purpose of this report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements of the
Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
Waco, Texas
2023
3
PATTILLO, BROWN & HILL, L.L.P.
- 401 West State Highway 6
�y1 Waco, Texas 76710
254.772.4901 pbhqa.ccm
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS
PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Honorable Mayor and
Members of City Council
City of Schertz, Texas
We have audited in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards issued
by the Comptroller General of the United States, the financial statements of the governmental activities, the
business -type activities, each major fund, and the aggregate remaining fund information of the City of
Schertz, Texas (the "City") as of and for the year ended September 30, 2022, and the related notes to the
financial statements, which collectively comprise the City's basic financial statements, and have issued our
report thereon dated , 2023. Our report includes a reference to other auditors who audited the financial
statements of Schertz-Seguin Local Government Corporation e4W t-be Qbelo Valley dal r-^v@rpr,-rmmen}
Ccrrcraticr:, as described in our report on City of Schertz, Texas' financial statements. This report does not
include the results of the other auditors' testing of internal control over financial reporting or compliance and
other matters that are reported on separately by those auditors.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal
control over financial reporting (internal control) as a basis for determining audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but
not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we
do not express an opinion on the effectiveness of the City's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees in the normal course of performing their assigned functions, to prevent, or detect
and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of
deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the
entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant
deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a
material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of
this section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses
may exist that have not been identified.
C]
OFFICE LOCAMON.11'a
TEXAS I \Nato Temple Hillsboro I Houston
NEW MEXICO I Albuquerque
IN
�AICPA
GAQC Member
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free of
material misstatements, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have direct and material effect on the
financial statements. However, providing an opinion on compliance with those provisions was not an objective
of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no
instances of noncompliance or other matters that are required to be reported under Government Auditing
Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's
internal control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this
communication is not suitable for any other purpose.
Waco, Texas
, 2023
Pi
CITY OF SCHERTZ, TEXAS
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
Federal Grantor/
Assistance
Pass -Through
Pass -Through Grantor/
Listing
Entity Identifying
Federal
Program Title
Number
Number
Expenditures
U.S. Department of Justice
Direct Programs:
Equitable Sharing Agreement and Certification
16.922
N/A
9,273
Total Dlrect Programs
_ 9,273
Total U.S. Department of Justice
9,273
U.S. Department of Treasury
Direct Programs:
Equitable Sharing Agreement and Certification
21.016
N/A
77,996
Total Direct Programs
77,996
Passed through the Texas Division of Emergency Management:
COVID-19 - State and Local Fiscal Recovery Fund (ARP Act)
21.027
TX2511
2,422,438
Total Texas Division of Emergency Management
2,422,438
Total U.S. Department of Treasury
_ 2,500,434
National Endowment for the Humanities [NEH]
Passed through the Texas State Library and Archives Commission:
Grants to States - Interlibrary Loan Program (ILL)
45.310
902524
8,094
Total Texas State Library and Archives Commission
_ 8,094
Total National Endowment for the Humanities (NEH) 8,094
U.S. Department of Health and Human Services
Passed through the Texas Health and Human Services Commission:
Medicaid Cluster - Ambulance Services -
Uncompensated Care Costs 93.778 N/A __ 551835
Total Texas Health and Human Services Commission 55,835
Total U.S. Health and Human Services Commission 55,835
U.S. Depprtment of Homeland Security
Passed through Texas Division of Emergency Management:
Disaster Grants - Public Assistance 97.036 N/A 5619399
Total Texas Division of Emergency Management 561,399
Total U.S. Department of Homeland Security 561,399
Total Expenditures of Federal Awards $ 3,135,035
The accompanying notes are an integral part
of this schedule. 6
CITY OF SCHERTZ, TEXAS
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
1. GENERAL
The accompanying schedule of expenditures of federal awards presents the activity of all applicable federal
awards of the City of Schertz, Texas. The City's reporting entity is defined in Note I to the City's basic
financial statements. Federal awards received directly from federal and state agencies as well as federal
awards passed through other government agencies are included in the respective schedule.
2. BASIS OF ACCOUNTING
The accompanying schedule of expenditures of federal awards is presented using modified accrual basis of
accounting, which is described in Note I to the City's basic financial statements.
3. RELATIONSHIP TO FEDERAL FINANCIAL REPORTS
Grant expenditure reports as of September 30, 2022, which have been submitted to grantor agencies will,
in some cases, differ slightly from amounts disclosed herein. The reports prepared for grantor agencies are
typically prepared at a later date and often reflect refined estimates of year-end accruals. The reports will
agree at termination of the grant as the discrepancies noted are timing differences.
4. INDIRECT COSTS
The City has not elected to use the 10% de minimis indirect cost rate as allowed in the Uniform Guidance,
Section 414.
S. PASS -THROUGH EXPENDITURES
None of the federal programs expended by the City were passed through to subrecipients.
7
CITY OF SCHERTZ, TEXAS
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
Summary of the Auditor's Results
Financial Statements:
Type of auditor's report issued:
Internal control over financial reporting:
Material weakness(es) identified?
Significant deficiency(ies) identified that are
not considered a material weakness?
Noncompliance material to
financial statements noted?
Federal Awards:
Internal control over major programs:
Material weakness(es) identified?
Significant deficiency(ies) identified that are
not considered a material weakness?
Type of auditor's report issued on compliance for
major federal programs
Any audit findings disclosed that are required to be
reported in accordance with 2 CFR 200.516(a)?
Identification of major federal programs:
Assistance Listing Number(s):
21.027
The dollar threshold used to distinguish between
type A and type B federal programs.
Auditee qualified as low -risk auditee?
Findings Relating to the Financial Statements Which
are Required to be Reported in Accordance With
Generally Accepted Government Auditing Standards
None reported
Findings and Questioned Costs for Federal Awards
None reported
Unmodified
No
None reported
No
No
None reported
Unmodified
None
Name of Federal Program or Cluster:
COVID-19 - State and Local Fiscal
Recovery Fund (ARP Act)
$750,000
Yes
8
CITY OF SCHERTZ, TEXAS
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
None
PATTILLO, BROWN & HILL, L.L.P.
401 West state Highway 6
Waco, Texas 76710
254.772.4901 pbhcpa.com
Honorable Mayor and
Members of the City Council
City of Schertz, Texas
We have audited the financial statements of the City of Schertz, Texas (the "City") as of and for the
year ended September 30, 2022 and have issued our report thereon dated , 2023. Professional
standards require that we advise you of the following matters relating to our audit.
Our Responsibility in Relation to the Financial Statement Audit
As communicated in our engagement letter dated December 12, 2022, our responsibility, as described
by professional standards, is to form and express opinions about whether the financial statements that have
been prepared by management with your oversight are presented fairly, in all material respects, in accordance
with accounting principles generally accepted in the United States of America. Our audit of the financial
statements does not relieve you or management of your respective responsibilities.
Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain
reasonable, rather than absolute, assurance about whether the financial statements are free of material
misstatement. An audit of financial statements includes consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity's internal control over financial reporting.
Accordingly, as part of our audit, we considered the internal control of the City solely for the purpose of
determining our audit procedures and not to provide any assurance concerning such internal control.
We are also responsible for communicating significant matters related to the audit that are, in our
professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However,
we are not required to design procedures for the purpose of identifying other matters to communicate to you.
Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously communicated to
you.
Compliance with All Ethics Requirements Regarding Independence
The engagement team, others in our firm, and, as appropriate, our firm have complied with all
relevant ethical requirements regarding independence.
As a part of the engagement we assisted in preparing the financial statements, related notes to the
financial statements, and the schedule of expenditures of federal awards of the City in conformity with U.S.
generally accepted accounting principles and Uniform Guidance. These nonaudit services do not constitute an
audit under Government Auditing Standards and such services were not conducted in accordance with
Government Auditing Standards.
OFFICE LOCATIONS
TEXAS - VIaco Temple Hillsboro Houston
NEW MEXICO ; Albuquerque
O�N AICPA
GAQC Member
In order to reduce threats to our independence caused by these nonattest services to an acceptable level,
we applied certain safeguards. These safeguards include a concurring review, which is a review of the financial
statements and key audit areas which is performed by an individual who has adequate experience in audits of
local governments, but who was not involved in this audit engagement. The concurring reviewer serves as an
evaluator of the performance of the engagement team and the nonattest services provided.
In order to ensure we maintain our independence for performing these nonaudit services certain
safeguards were applied to this engagement. Management assumed responsibility for the financial statements,
related notes to the financial statements, and the schedule of expenditures of federal awards, and any other
nonaudit services we provided. Management acknowledged in the management representation letter our
assistance with the preparation of the financial statements, related notes to the financial statements, and the
schedule of expenditures of federal awards, and that these items were reviewed and approved prior to their
issuance and accepted responsibility for them. Further, the nonaudit services were overseen by an individual
within management that has the suitable skill, knowledge, or experience; evaluated the adequacy and results of
the services; and accepted responsibility for them.
Significant Risks Identified
We have identified the following significant risks during our audit process, which required special audit
consideration:
Significant Risk Identified Reasoning for Special Audit Consideration
1. Management override of controls Inherent fraud risk which is a risk for all entities
in accordance with generally accepted auditing
standards.
Qualitative Aspects of the Entity's Significant Accounting Practices
Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of
the significant accounting policies adopted by the City is included in Note I to the financial statements. There
have been no initial selection of accounting policies and no changes in significant accounting policies or their
application during the year. No matters have come to our attention that would require us, under professional
standards, to inform you about (1) the methods used to account for significant unusual transactions and (2)
the effect of significant accounting policies in controversial or emerging areas for which there is a lack of
authoritative guidance or consensus.
Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and
are based on management's current judgments. Those judgments are normally based on knowledge and
experience about past and current events and assumptions about future events. Certain accounting estimates
are particularly sensitive because of their significance to the financial statements and because of the
possibility that future events affecting them may differ markedly from management's current judgments.
The most sensitive accounting estimates affecting the financial statements are:
Management's estimate of the useful lives of capital assets is based on the expected lifespan of the asset
in accordance with standard guidelines. We evaluated the key factors and assumptions used to develop
the estimate of useful lives in determining that it is reasonable in relation to the financial statements
taken as a whole and in relation to the applicable opinion units.
Management's estimate of the allowance for uncollectible court fines and delinquent property taxes
receivable are based on historical collections. We evaluated the key factors and assumptions used to
develop the allowance for uncollectible court fines in determining that it is reasonable in relation to the
financial statements taken as a whole and in relation to the applicable opinion units.
2
Management's estimate of the allowance for uncollectible EMS receivable is based on historical
collections. We evaluated the key factors and assumptions used to develop the allowance for EMS
revenues in determining that it is reasonable in relation to the financial statements taken as a whole and
in relation to the applicable opinion units.
Management's estimate of the net pension and total OPEB liabilities and related expenses are based on
actuarial assumptions which are determined by the demographics of the plan and future projections that
the actuarial makes based on historical information of the plan and the investment market. We evaluated
the key factors and assumptions used to develop the net pension and total OPEB liabilities and pension
and OPEB expenses and determined that they are reasonable in relation to the basic financial statements
taken as a whole and in relation to the applicable opinion units.
Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive
because of their significance to financial statement users. The most sensitive disclosures affecting the City's
financial statements relate to the net pension and OPEB liabilities. The disclosures in the financial statements
are neutral, consistent, and clear.
Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance of
the audit.
Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known and
likely misstatements identified during the audit, other than those that we believe are trivial, and communicate
them to the appropriate level of management. Further, professional standards require us to also communicate
the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions,
account balances or disclosures, and the financial statements as a whole and each applicable opinion unit.
Management has corrected all identified misstatements.
In addition, professional standards require us to communicate to you all material, corrected
misstatements that were brought to the attention of management as a result of our audit procedures. None of
the misstatements identified by us as a result of our audit procedures and corrected by management were
material, either individually or in the aggregate, to the financial statements taken as a whole or applicable
opinion units.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a
matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing
matter, which could be significant to the City's financial statements or the auditor's report. No such
disagreements arose during the course of the audit.
Representations Requested from Management
We have requested certain written representations from management, which are included in the
management representation letter dated , 2023.
Management's Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and
accounting matters. Management informed us that, and to our knowledge, there were no consultations with
other accountants regarding auditing and accounting matters.
t3
Other Significant Matters, Findings, or Issues
In the normal course of our professional association with the City, we generally discuss a variety of
matters, including the application of accounting principles and auditing standards, operating and regulatory
conditions affecting the entity, and operational plans and strategies that may affect the risks of material
misstatement. None of the matters discussed resulted in a condition to our retention as the City's auditors.
New Accounting Pronouncements
Significant new accounting standards issued by the Governmental Accounting Standards Board (GASB)
not yet implemented by the City include the following:
Statement No. 94, Public -Private and Public -Public Partnerships and Availability Payment
Arrangements - The primary objective of this Statement is to improve financial reporting by addressing issues
related to public -private and public -public partnership arrangements (PPPs). As used in this Statement, a PPP
is an arrangement in which a government (the transferor) contracts with an operator (a governmental or
nongovernmental entity) to provide public services by conveying control of the right to operate or use a
nonfinancial asset, such as infrastructure or other capital asset (the underlying PPP asset), for a period of time
in an exchange or exchange -like transaction. GASB 94 will become effective for reporting periods beginning
after June 15, 2022, and the impact has not yet been determined.
Statement No. 96, Subscription -Based Information Technology Arrangements - This Statement
provides guidance on the accounting and financial reporting for subscription -based information technology
arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2)
establishes that a SBITA results in a right -to -use subscription asset —an intangible asset —and a corresponding
subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments,
including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. To the extent
relevant, the standards for SBITAs are based on the standards established in Statement No. 87, Leases, as
amended. This Statement will become effective for reporting periods beginning after June 15, 2022, and the
impact has not yet been determined.
GASB Statement No. 100, Accounting Changes and Error Corrections —an amendment of GASB
Statement No. 62 - The primary objective of this Statement is to enhance accounting and financial reporting
requirements for accounting changes and error corrections to provide more understandable, reliable, relevant,
consistent, and comparable information for making decisions or assessing accountability. This Statement will
become effective for reporting periods beginning after June 15, 2023, and the impact has not yet been
determined.
GASB Statement No. 101, Compensated Absences - The objective of this Statement is to better meet
the information needs of financial statement users by updating the recognition and measurement guidance for
compensated absences. That objective is achieved by aligning the recognition and measurement guidance
under a unified model and by amending certain previously required disclosures. This Statement will become
effective for reporting periods beginning after December 15, 2023, and the impact has not yet been
determined.
Other Information Included in the Annual Report
Pursuant to professional standards, our responsibility as auditors for other information, whether
financial or nonfinancial, included in the City's Annual Comprehensive Financial Report, does not extend
beyond the information identified in the audit report, and we are not required to perform any procedures to
corroborate such other information. However, in accordance with such standards, we have read the other
information and considered whether a material inconsistency exists between the other information and the
financial statements, or if the other information otherwise appears to be materially misstated.
Our responsibility also includes communicating to you any information which we believe is a material
misstatement of fact. Nothing came to our attention that caused us to believe that such information, or its
manner of presentation, is materially inconsistent with the information, or manner of its presentation,
appearing in the financial statements.
4
Restriction on Use
This report is intended solely for the information and use of the City Council and management of the
City and is not intended to be and should not be used by anyone other than these specified parties.
Waco, Texas
2023
CITY OF SCHERTZ, TEXAS
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED
SEPTEMBER 30, 2022
"CITY'
9
141,
1> l R AvT' e�
OFFICIALS ISSUING REPORT
Steve Williams
City Manager
James Walters
Director of Finance
CITY OF SCHERTZ, TEXAS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
TABLE OF CONTENTS
INTRODUCTORY SECTION
Page
Number
Letterof Transmittal..................................................................................................... i - iv
CityOfficials................................................................................................................. v
OrganizationalChart ..................................................................................................... vi
Certificateof Achievement............................................................................................. vii
FINANCIAL SECTION
IndependentAuditor's Report ......................................................................................... 1-3
ManagementDiscussion and Analysis.............................................................................. 4 - 12
Basic Financial Statements
Government -Wide Financial Statements:
Statement of Net Position......................................................................................... 13 - 14
Statementof Activities............................................................................................. 15 - 16
Fund Financial Statements:
Governmental Funds
BalanceSheet......................................................................................................
Reconciliation of the Balance Sheet of Governmental
Funds to the Statement of Net Position...............................................................
Statement of Revenues, Expenditures, and
Changesin Fund Balances.................................................................................
Reconciliation of Revenues, Expenditures and Changes
In Fund Balances - Governmental Funds to the
Statement of Activities......................................................................................
Proprietary Funds
Statement of Net Position......................................................................................
Statement of Revenues, Expenses, and
Changes in Fund Net Position.............................................................................
Statementof Cash Flows.......................................................................................
Notesto the Financial Statements.............................................................................
17 - 18
19
20-21
22
23 - 24
25
26 - 27
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
Notes to Budgetary Schedules..................................................................................... 58
Schedule of Changes in Net Pension
Liability and Related Ratios....................................................................................... 59 - 60
Schedule of Employer Contributions............................................................................. 61 - 62
Schedule of Changes - TMRS Other Post -Employment Benefit
Liabilityand Related Ratios....................................................................................... 63
Schedule of Changes - City Retiree Health Other Post -Employment
Benefit Liability and Related Ratios............................................................................ 64
Combining and Individual Fund Statements and Schedules
Comparative Balance Sheets - General Fund................................................................. 65
Comparative Schedules of Revenues, Expenditures, and Changes in
FundBalance - General Fund................................................................................. 66
Comparative Balance Sheets - Economic Development Corporation ................................. 67
Comparative Schedules of Revenues, Expenditures, and Changes in
FundBalance - Economic Development Corporation ................................................. 68
Comparative Balance Sheets - Debt Service Fund.......................................................... 69
Schedule of Revenues, Expenditures, and Changes
in Fund Balance - Budget and Actual - Debt Service Fund ......................................... 70
Comparative Balance Sheets - Capital Projects Fund ...................................................... 71
Comparative Schedules of Revenues, Expenditures, and Changes in
Fund Balance - Capital Projects Fund...................................................................... 72
Combining Balance Sheet - Nonmajor Governmental Funds ............................................ 73 - 74
Combining Schedule of Revenues, Expenditures, and
Changes in Fund Balances - Nonmajor Governmental 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
inFund Balance - Treasury Forfeitures Fund............................................................ 80
Schedule of Revenues, Expenditures, and Changes
in Fund Balance - Justice Forfeitures Fund............................................................... 81
Schedule of Revenues, Expenditures, and Changes
in Fund Balance - State Forfeitures Fund................................................................. 82
Schedule of Revenues, Expenditures, and Changes
in Fund Balance - Budget and Actual - Library Advisory Board Fund ........................... 83
Schedule of Revenues, Expenditures, and Changes
in Fund Balance - Budget and Actual - Historical Committee Fund .............................. 84
Schedule of Revenues, Expenditures, and Changes
in Fund Balance - Capital Recovery Roadways......................................................... 85
STATISTICAL SECTION
Net Position by Component..............................................................................
1
86 - 87
Change in Net Position....................................................................................
2
88 - 91
FundBalances of Governmental Funds..............................................................
3
92 - 93
Changes in Fund Balances, Governmental Funds .................................................
4
94 - 95
Tax Revenue by Source - Governmental Funds ..................................................
5
96 - 97
Total Water and Sewer Consumption and Rates ..................................................
6
98
Principal Water and Sewer Consumers...............................................................
7
99
Direct and Overlapping Property Tax Rates ........................................................
8
100
Principal Property Taxpayers............................................................................
9
101
Property Tax Levies and Collections..................................................................
10
102
TaxableAssessed Value...................................................................................
11
103 - 104
Ratios of Outstanding Debt by Type..................................................................
12
105 - 106
Ratios of General Bonded Debt Outstanding.......................................................
13
107
Direct and Overlapping Governmental Activities Debt ..........................................
14
108
Debt Margin Information..................................................................................
15
109
Pledged Revenue Coverage..............................................................................
16
110
Demographic and Economic Statistics................................................................
17
111
Top Ten Principal Employers.............................................................................
18
112
Full -Time Equivalent City Governmental Employers by Function ............................
19
113 - 114
Operating Indicators by Function/Program.........................................................
20
115 - 118
Capital Asset Statistics by Function/Program......................................................
21
119 - 120
INTRODUCTORY SECTION
SCHIERTZ q COMMUNITY
February 28, 2023
To the Honorable Mayor, City Council, and the Citizens of Schertz:
State law requires that local governments publish a complete set of financial statements presented in conformity
with generally accepted accounting principles in the United States of America (U.S. GAAP) and audited in
accordance with generally accepted auditing standards in the United States of America by a firm of licensed
certified public accountants. Pursuant to that requirement, we hereby issue the annual comprehensive financial
report of the City of Schertz for the fiscal year ended September 30, 2022.
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 fraemework 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, 2022, 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, 2022, 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 thebasic
financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal
is designed to complement MD&A and should be read in conjunction with it. The City of Schertz's MD&A can
be found immediately following the report of the independent auditors.
Profile of the Government
The City of Schertz, incorporated in 1958, is located in the central part of Texas, which is considered to be a top
growth area in the state, and one of the top growth areas in the country. The City of Schertz currently occupies a
land area of 32.21 square miles with a population of 42,622 in 2021 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 210.618.1000
COMMUNrTY
SCHIERTZ I SVICE
OPPORTUNITY
councilmembers. 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 301.
The fiscal year for Schertz is from October 1 through September 30. The appropriated budget is prepared by each
department (e.g. police). The City Manager may make transfers of appropriations within a department. The City
Manager may make transfers between departments and funds with City Council approval. Budget to actual
comparisons are provided in this report for each individual governmental fund for which an appropriated annual
budget has been adopted. For the general fund, this comparison is presented on pages 55-56 as part of the required
supplementary information.
Factors Affecting Financial Condition
The information presented in the financial statements is perhaps best understood when it is considered from the
broader perspective of the specific environment within which the City of Schertz operates.
Local economy.
Economic growth in Schertz remained strong in 2022. The surrounding metro area saw growth evidenced by the
Federal Reserve Bank of Dallas reporting the San Antonio Business -Cycle Index increase 7.25 % year over year
for September 2022. This Index potentially indicates a continued period of economic growth around the state.
As of September 2022, the unemployment rate for Texas was 3.8% and several metro areas including Austin,
Dallas -Fort Worth, and San Antonio, are below the state average. Schertz, as included in the San Antonio -New
Braunfels MSA, had an unemployment rate of3.5% during this time.
As another indicated of economic growth, the City of Schertz realized a 7.411% increase year -over -year in sales
tax collections during the fiscal year. The City's average longer term growth is 7% which indicates the City has
maintained its previous growth from the recent years and continued its growth at historic averages.
New residential construction has been slowing in the city the past few years, cutting revenue by 20% over last
year. Despite the downward trend in new residential permits, overall new taxable value has grown by the historic
average of 3% lead by commercial construction.
In the existing industrial park, Building 4 remains empty while Buildings 5,6 and 7 have all been leased.
Industrial development continued to push North along IH-35 across FM 3009 with Phelan -Bennet completing
and filling 169,525 sq ft of speculative warehouse distribution on Four Oaks Lane. Doerr Lane Logistics
Center is almost complete, with 2/3 of the building pre -leased. Another 112,000 square foot warehouse/
distribution center is set to begin construction this year off FM 3009.
In Northern Schertz, redevelopment, expansion, and significant speculative development characterized 2022. In
June 2021, Caterpillar again invested in Schertz with an estimated $24,000,000 adding an additional
1400 Schertz Parkway Schertz, Texas 78154 210.619.1000
COMMUNITY
SCHIERTZ
manufacturing line. Sysco Central Texas site was awarded economic development incentives to secure a 100,000
sq ft expansion of their existing facility, currently under construction.
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, which is currently in the planning and engineering phase.
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. The remaining $5 million for FM 1518 was issued in 2022 with the expected let date in
2023. In June 2018, the second $4 million was issued for the Fire Station to begin construction. The fire station
was completed in November 2021.
In November 2021, the City placed 1 bond proposition before voters totally $15.45 million for Fire Station number
4 which passed. The funds for the new fire station were issued in 2022 and purchase of the fire engine and the
land are underway.
Current Year Budget Initiatives. For FY 2022-23, the City has a host of new positions and initiatives approved
for this year. Council also approved a 3% across the board pay raise based on the Employment Cost Index (ECI)
as well as an additional increase based on tiers. The highest pay brackets received 1 %, the middle pay brackets
received 2% and the lowest bracket received4%.
There were 24 new positions approved in the General Fund and 8 in EMS. The General Fund included 3
Firefighters, a Fire Inspector, an Engineering Inspector, an Engineer, an IT Public Safety Tech, a GIS Specialist,
3 Parks Maintenance Techs, a Recreation Coordinator, a Plans Examiner, a Permit Technician, a Neighborhood
Services Officer, 2 School Police Officers, a Traffic Patrol Officer, a Records Specialist, a Parts Clerk, a Part-
time Library Programming Specialist, a conversion of 2 10-hour positions in the Library to 20-hour positions,
and a Event Attendant. EMS received 8 new ambulance staff to be phased in throughout the year.
In addition to the positions, the General Fund was also approved to create a new parking lot at Building 27 and
had additional street maintenance funds added. Other improvements to operations included, internet and fiber
upgrades, software for bid acceptance, an upgrade to the Police records management system, the return of the
Library Hotspot loan program, new and replacement security cameras at public facilities, an increase in contract
cleaning and mowing, an upgrade to inventory management software, Microsoft Office Training, and a hard drive
shredder.
New initiatives included in the budget were the start of annual trail development funding and the Cibolo Creek
Clean -Up program. These programs when combined with the new Parks and Neighborhood Services staff' will
help keep the city looking nice and provide for outdoor activities for citizens.
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
1400 Schertz Parkway Schertz, Texas 78154 210.619.1000
SCHEIRTZ I SERVICE
�
which is designed with a system of internal controls. These controls are continually being reevaluated to provide
reasonable, but not absolute, assurances.
Budget Controls. The City also utilizes budgetary controls. Legally expenditures cannot exceed the appropriated
amount. The objective of these budgetary controls is to ensure compliance with the adopted budget approved by
the City Council as mandated by the city charter and state law. The levels of budgetary control are established at
the line -item basis and at the fund level. Staff believes these controls help monitor and direct approved
expenditures to a level within the budget parameters which directly results in a strong financial performance.
Financial Results. Assets and fund balances continue to grow as the City grows and financial results remain
strong. While additional debt was issued during the year, Staff closely monitors and plans the amount of issuance
to keep steady debt ratios per capita, per revenue, and per operations tax rate to the debt tax rate. Examples of
these ratios can be found in the Statistical Section on pages 105-110. A more detailed summary of the City's
Financial Performance is available in the Management Discussion and Analysis section on page 4.
Independent Audit. Every year an independent audit is performed of the general ledger, accounts, financial
records, and transactions of all city departments. The audit is completed by an independent certified public
accounting firm selected by the City Council. The City is in compliance with this requirement and the independent
auditor's report by Pattillo, Brown & Hill, LLP. Certified Public Accountants, has been included in this report.
Awards and Acknowledy-ements
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, 2021. This was the 37th consecutive year that the City has received
this prestigious award. In order to be awarded a Certificate of Achievement, the City must publish an easily
readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally
accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe our current comprehensive annual
financial report continues to meet the Certificate of Achievement Program's requirements and we 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,
Steve Williams James P. Walters
City Manager Finance Director
1400 Schertz Parkway Schertz, Texas 78154 210.619.1000
CITY OF SCHERTZ, TEXAS
CITY OFFICIALS
MAYOR RALPH GUTIERREZ
MAYOR PRO-TEM ROSEMARY SCOTT
CITY COUNCIL MARK E. DAVIS
N IMILYA 0011■lf-0INai
MICHELLE WATSON
MICHAEL DAHLE
DAVID SCAGLIOLA
ALLISON HEYWARD
TIM BROWN
CITY MANAGER STEVE WILLIAMS
DIRECTOR OF FINANCE JAMES WALTERS
CITY ATTORNEY CHARLES ZECH, DENTON, NAVARRO, ROCHA, BERNAL & ZECH, P.C.
v
Prosecuting ■ City Secretary*
Attorney
Citizens
Mayor
& City Council
City Manager* Municipal Court City Attorney*
Judge
Assistant to the Assistant City Assistant City
City Manager Manager Manager
Operation I Development
Public Affairs I' Police �� Development
Services
Fire Rescue 1= Engineering
Parks, Recreation,
EMS and Community
Service
Public Works Information
Technology
Fleet & Facility 'n Library
Services
Geographic
Human Resources11 Information
Systems
Finance
Executive Director
Economic
Development
Schertz Economic
Development
Corporation
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Schertz
Texas
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
September 30, 2021
Executive Director/CEO
vii
FINANCIAL SECTION
PATTILLO, BROWN & HILL, L.L.P.
401 West State Highway 6
Waco, Texas 76710
254.772.4901 pbhcpa.com
INDEPENDENT AUDITOR'S REPORT
Honorable Mayor and
Members of the City Council
City of Schertz, Texas
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business -type activities,
each major fund, and the aggregate remaining fund information of the City of Schertz, Texas (the "City"), as
of and for the year ended September 30, 2022, and the related notes to the financial statements, which
collectively comprise the City's basic financial statements as listed in the table of contents.
In our opinion, the accompanying financial statements 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, as of September 30, 2022, 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.
We did not audit the financial statements of the Schertz-Seguin Local Government Corporation, which
represents 9.9 percent and 12.4 percent, respectively, of the assets and net position of the Water and Sewer
Fund, and 9.5 percent and 12.1 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, is
based solely on the report of the other auditors.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America (GAAS) and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards
are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our
report. We are required to be independent of the City and to meet our other ethical responsibilities, in
accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for 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.
In preparing the financial statements, management is required to evaluate whether there are
conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to
continue as a going concern for twelve months beyond the financial statement due date, including any
currently known information that may raise substantial doubt shortly thereafter.
1
OFFICE LOCATIONS
TEXAS 1 Waco • Temple Hillsboro Houstor
NEW MEXICO Albuquerque
_ AICPA
GAQC Member
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that
includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and
therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing
Standards will always detect a material misstatement when it exists. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are
considered material if there is a substantial likelihood that, individually or in the aggregate, they would
influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether
due to fraud or error, and design and perform audit procedures responsive to those risks.
Such procedures include examining, on a test basis, evidence regarding the amounts and
disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit 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 City's internal control. Accordingly, no such opinion is
expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of
the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the
aggregate, that raise substantial doubt about the City's ability to continue as a going concern
for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit, significant audit findings, and certain internal control -
related matters that we identified during the audit.
Report on Summarized Comparative Information
We have previously audited the City of Schertz, Texas' fiscal year 2021 financial statements, and we
expressed an unmodified audit opinion on those audited financial statements in our report dated March 4,
2022. In our opinion, the summarized comparative information presented herein as of and for the year ended
September 30, 2021 is consistent, in all material respects, with the audited financial statements from which it
has been derived.
2
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis, budgetary comparison information, and pension and OPEB information
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.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City's basic financial statements. The combining and individual nonmajor fund
financial statements and schedules are presented for purposes of additional analysis and are not a required
part of the basic financial statements. Such information is the responsibility of management and was derived
from and relates directly to the underlying accounting and other records used to prepare the basic financial
statements. 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.
Other Information
Management is responsible for the other information included in the annual comprehensive financial
report (ACFR). The other information comprises the introductory section and statistical section but does not
include the financial statements and our auditor's report thereon. Our opinions on the financial statements do
not cover the other information, and we do not express an opinion or any form of assurance thereon. In
connection with our audit of the financial statements, our responsibility is to read the other information and
consider whether a material inconsistency exists between the other information and the financial statements,
or the other information otherwise appears to be materially misstated. If, based on the work performed, we
conclude that an uncorrected material misstatement of the other information exists, we are required to
describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated , 2023,
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.
Waco, Texas
2023
3
MANAGEMENT'S
DISCUSSION AND ANALYSIS
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, 2022. 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 $296,744,906 (net position). Of this amount, $53,846,695 (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 $27,496,211. The primary reason for this increase was an increase in
capital contributions of approximately $13 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
$91,183,806, an increase of $34,064,774 in comparison with the prior year. The primary cause of this increase was
a increases in property and sales tax revenues that exceeded expenditure growth.
At the end of the fiscal year, the combined total of the General Fund assigned and unassigned fund balances was
$13,602,769 which is 36.27% of the general fund expenditures not including capital outlay. The fund balance policy
is to reserve at least a 26% balance.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City's basic financial statements. The
City's basic financial statements comprise three components: 1) government -wide financial statements, 2) fund
financial statements, and 3) notes to the financial statements. This report also contains other supplementary
information in addition to the basic financial statements themselves.
Government -wide financial statements. The government -wide financial statements are designed to provide readers
with a broad overview of the City's finances, in a manner similar to a private -sector business.
The statement of net position presents information on all of the City's assets, deferred outflows, liabilities, and
deferred inflows, with the difference between the former two and latter two reported as net position. Over time,
increases or decreases in net position may serve as a useful indicator of whether the financial position of the City of
Schertz is improving or deteriorating.
The statement of activities presents information showing how the City's net position changed during the most recent
fiscal year. All changes in net position are reported as soon as the underlying event giving to the change occurs,
regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some
items that will only result in cash flows in future fiscal periods (e.g. uncollected taxes and earned but unused
vacation leave).
Both of the government -wide financial statements distinguish functions of the City of Schertz that are
principally supported by taxes and intergovernmental revenues (governmental activities) from other
functions that are intended to recover all or a significant portion of their costs through user fees and
charges (business -type activities). The governmental activities of the City of Schertz include general
government, public safety, streets and parks, health, and culture and recreation. The business -type activities of the
City of Schertz include a water and sewer department and an emergency medical services department.
4
Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over
resources that have been segregated for specific activities or objectives. The City of Schertz, like other state and
local governments, uses fund accounting to ensure and demonstrate compliance with finance -related legal
requirements. The funds of the City of Schertz can be divided into two categories: governmental and proprietary.
Governmental funds. Governmental funds are used to account for essentially the same functions reported
as governmental activities in the government -wide financial statements. However, unlike the government -
wide financial statements, governmental fund financial statements focus on near term inflows and outflows
of spendable resources, as well as on balances of spendable resources available at the end of the fiscal
year. Such information is useful in evaluating a government's near -term financing requirements.
Because the focus of governmental funds is narrower than that of the government -wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government -wide financial statements. By doing
so, readers may better understand the long-term impact of the government's near -term financing decisions.
Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures,
and changes in fund balances provide a reconciliation to facilitate this comparison between governmental
funds and governmental activities.
The City of Schertz maintains fifteen individual governmental funds. Information is presented separately
in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures,
and changes in fund balances for the general fund, the debt service fund, the economic development
corporation, the capital projects fund, and the American Recovery Plan Act fund, all of which are considered to be
major funds. Data from the other ten governmental funds are combined into a single, aggregated presentation.
Individual fund data for each of these non -major governmental funds is provided in the form of combining
statements elsewhere in this report.
Proprietary funds. The City of Schertz maintains two types of proprietary funds. Enterprise funds are used to
report the same functions presented as business -type activities in the government -wide financial statements. The
City of Schertz uses enterprise funds to account for its water and sewer department and for its emergency medical
services department. The City also maintains an internal service fund to account for internal charges for medical
premiums.
Proprietary funds provide the same type of information as the government -wide financial statements, only in more
detail. The proprietary fund financial statements provide separate information for the water and sewer department
and for the emergency medical services department, both of which are considered to be major funds of the City of
Schertz, as well as the internal service fund.
Notes to the financial statements. The notes provide additional information that is essential to a full
understanding of the data provided in the government -wide and fund financial statements.
Other information. In addition to the basic financial statements and accompanying notes, this report also presents
certain required supplementary information concerning the City's general fund budgetary schedule. The City of
Schertz adopts an annual appropriated budget for its general fund. A budgetary comparison schedule has been
provided for the general fund to demonstrate compliance with this budget. The economic development corporation
also adopts an annual budget, and a comparison schedule for it also is provided in the required supplementary
information.
The combining statements referred to earlier in connection with non -major governmental funds are presented
immediately following the required supplementary information.
Government -wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the
case of the City of Schertz, assets and deferred outflows exceeded liabilities and deferred inflows by $296,744,906
at the close of the most recent fiscal year. The largest portion of the City's total net position (69%) reflects its net
investment in capital assets (e.g., land, buildings, machinery, and equipment) less any related debt used to acquire
those assets that is still outstanding, plus bond proceeds that have not yet been spent. The City of Schertz uses
these capital assets to provide services to citizens; consequently, these assets are not available for operational type
of future spending. Although the City's investment in its capital assets is reported net of related debt, it should be
noted that the resources needed to repay this debt must be provided from other sources, since the capital assets
themselves cannot be used to liquidate these liabilities.
5
An additional portion of the City's total net position (13%) represents resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net position, $53,846,695, may be
used to meet the government's ongoing obligations to citizens and creditors.
At the end of the current fiscal year, the City of Schertz is able to report positive balances in all three categories of
net position, both for the government as a whole, as well as for its separate governmental and business -type
activities. The same situation held true for the prior fiscal year.
City of Schertz's Net Position
Government -Wide
Governmental Business -Type
Activities Activities Total
2022 2021 2022 2021 2022 2021
Current and other assets
$ 105,714,129
$ 67,416,673
$ 73,186,420
$ 56,132,860
$ 178,900,549
$ 123,549,533
Capital assets
159.972.44
14%570,599
108,872,222
98,743,525
268,844,669
248,314,124
Total assets
265,686,576
216,987,272
182,058,642
154 876,385
447,745,218
371,863,657
Deferred outflows of resources
4,309,869
3,488.506
1,195,882
954,384
5,505,751
4,442,890
Current liabilities
18,382,113
12,946,000
6,911,108
5,316,572
25,293,221
18,262,572
Long-term liabilities
93,693,054
_ 67,867,628
31,871,137
18,214,795
125,564,191
86,082,423
Total liabilities
112,075,167
80,813,628
38,782,245
23,531,367
150,857 412
104�,.344�995
Deferred inflows of resources
4,374,235
2,130,871
1,274,416
581,986
5,648.651
2,712.857
Net position:
Net investment in capital assets
109,746,340
98,444,714
94,997,863
83,941,882
204,744,203
182,386,596
Restricted
32,745,688
28,342,438
5,408,320
8,368,736
38,154,008
36,711,174
Unrestricted
11,055,015
10,744,127
_42,791,680
39,406,798
53,846,695
50,150,925
Total net position
$ 153�
$ 137,531,279
$_ 143,197,863
$ 131,717,416
$ 296,744,906
$ 269,248,695
The government's net position increased by $27,496,211 during the current fiscal year. The primary cause for the
increase was increased revenues; the City recognized approximately $13 million of capital contribution revenue
related to dedicated infrastructure assets and also experienced sharp increases in property and sales taxes. These
increases stem from the City's continued rapid population growth; continued new housing and business
developments resulted in increased assessed value for property taxes and resulted in the creation of infrastructure
that was dedicated to the City. The related population increases resulted in increased economic activity that
increased sales tax revenues.
6
The following table indicates changes in net position for governmental and business -type activities followed by
graphs displaying total revenues and expenses by type:
City of Schertz's Changes in Net Position
Government -Wide
Governmental
Business -Type
Activities
Activities
Total
2022
2021
2022
2021
2022
2021
Revenues:
Program revenues:
Charges for services
$ 6,371,968
$ 5,448,546
$ 40,098,475
$ 35,433,956
$ 46,470,443
$ 40,882,502
Operating grants & contributions
3,970,029
1,925,939
-
-
3,970,029
1,925,939
Capital contributions
6,987,788
7,959,576
6,143,957
6,935,191
13,131,745
14,894,767
General revenues:
Property taxes
22,495,628
21,463,804
-
-
22,495,628
21,463,804
Other taxes
21,537,297
19,731,490
-
-
21,537,297
19,731,490
Investment earnings
709,898
104,613
314,546
68,354
1,024,444
172,967
Miscellaneous
1,138,775
1,408,270
675.739
754,268
1,814,514
2,162,538
Total revenues
63,211,383
58,042,238
47,232,717
_43-191,769
110,444,100
101,234,007
Expenses:
General government
7,093,652
7,298,193
-
-
7,093,652
7,298,193
Public safety
19,580,703
19,008,871
-
-
19,580,703
19,008,871
Public environment
8,545,834
5,364,408
-
-
8,545,834
5,364,408
Parks and recreation
3,543,978
3,395,458
-
-
3,543,978
3,395,458
Cultural
1,168,815
1,087,975
-
-
1,168,815
1,087,975
Health
-
-
-
-
-
Administration
4,455,947
4,360,229
4,455,947
4,360,229
Interest and other fees
2,490,474
1,797,520
-
-
2,490,474
1,797,520
water and sewer
-
-
27,833,986
25,280,964
27,833,986
25,280,964
EMS
-
-
8,234,500
7,784.670
8,234,500
77,784,670
Total expenses
46,879,403
42,312,654
36,068,486
33,065,634
82,947,889
75,378,288
Increase in net position
before transfers
16,331,980
15^ 7�584
11�231
10,126,135
27,496,211
25,855,719
Transfers
{ 316,216)
20,354
316,216
[ 20,354)
-
Change in net position
16,015,764
15,749,938
11,480,447
10,105,781
27,496,211
25,855,719
Net position - beginning of year
137,531,279
121,781,341
131,717,416
121.611,635
269,248,695
243,392,976
Net position - end of year
$ 153,547,043
$ 137, 331,279
$ 143,197,863
$ 131 717,416
$ 296,744,906
$ 269,248,695
TOTAL REVENUES - GOVERNMENT -WIDE
$25,000,000
$20,000,000
I
$15,000,000
$10,000,000
$5,000,000
0 L 1I1
�r
Charges for Operating Capital Grants Property Other Taxes Unrestricted Miscellaneous
Services Grants and and Taxes Investment
Contributions Contributions Earnings
■ 2022 2021
7
TOTAL EXPENSES - GOVERNMENT -WIDE
$20,000,000
$18,000,000
$16,000,000
$14,000,000
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
General Public Safety Public Parks and Cultural Health Administration Interest and
Government Environment Recreation Other Fees
■ 2022 s 2021
GENERAL REVENUE BY SOURCE - GOVERNMENTAL ACTIVITIES
Sales Tax
39%
Occupancy Tax Investment Earnings
Franchise Tax 2%- 1%
6%
Miscellaneous
rope rty Tax
49 %
8
TOTAL REVENUES AND EXPENSES - BUSINESS -TYPE ACTIVITIES
$50,000,000
$45,000,000
$40,000,000
$35,000,000
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$35,000,000
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
Revenues
2022 2021
Revenues Expenses
BUSINESS -TYPE REVENUES AND EXPENSES
Water and Sewer Utilities EMS
Nonope rating Revenues ■ Capital Contributions and Transfers
Expenses
9
Financial Analysis of the Government's Funds
As noted earlier, the City of Schertz uses fund accounting to ensure and demonstrate compliance with finance -
related legal requirements.
Governmental funds. The focus of the City's governmental funds is to provide information on near -term inflows,
outflows, and balances of spendable resources. Such information is useful in assessing the City's financing
requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net
resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the City's governmental funds reported combined ending fund
balances of $91,183,806. Of this total amount, $11,597,909 constitutes unassigned fund balance, which
is available for spending at the government's discretion. The remainder of fund balance is non -spendable,
restricted, committed, or assigned to indicate that it is not available for new spending because it has already been
committed to pay debt service, for capital improvement projects, and other assigned purposes.
The general fund is the chief operating fund of the City of Schertz. At the end of the current fiscal year,
unassigned fund balance of the general fund was $12,246,539, while total fund balance was $17,066,899,
an increase of ($588,332) from the prior year. Overall, the increase was caused by a large budgeted transfer out for
capital projects, but the fund also experienced increases in property and sales tax revenues in spite of the COVID-19
pandemic. As a measure of the general fund's liquidity, it may be useful to compare both unassigned fund balance
and total fund balance to total fund expenditures. Unassigned fund balance represents 36.27% of total general fund
expenditures, not including capital outlay.
The debt service fund has a total fund balance of $1,864,409, all of which is restricted for the payment of
debt service. The net increase in fund balance during the current year in the debt service fund was $777,033. This
increase was due to regular principal and interest payments on long-term debt being exceeded by interest and
sinking property tax revenue during the year. Over time, however, the debt service fund has sufficient cash and
equivalents on hand to remain liquid if tax revenues decrease.
The capital projects fund has a total fund balance of $41,406,516, an increase of $28,235,552. This was caused by
the issuance of multiple new bonds by the City during the year in order to fund future construction projects.
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 $26,043,128, which is an increase of $4,236,897 compared
to the prior year. The primary cause of this change was sales tax revenue growing faster than expenditures.
The American Rescue Plan Act Fund has a total fund balance of $34,618, which consists of interest earned on the
$7,816,119 received from the Coronavirus Local Fiscal Recovery Fund grant program. Amounts not spent as of year
end are presented as unearned revenue until spent in accordance with the terms of the grant agreement in future
years.
Proprietary funds. The City's proprietary funds provide the same type of information found in the government -
wide financial statements, but in more detail. Unrestricted net position of the water and sewer fund at the end of the
year amounted to $41,064,541 and those for the Schertz EMS fund amounted to $1,727,139, which are 153% and
21% of fund operating costs, respectively.
The water and sewer fund reported an increase in net position of $10 million. Approximately half of this increase
related to revenue recognized for contributed infrastructure assets; the remaining portion of the increase was from
operating income, which was consistent with the prior year. Management's intent is to accumulate operating surplus
to fund construction of new water and sewer infrastructure in future years with less reliance on bonded debt.
The Schertz EMS fund increased net position by $1.3 million. Revenues and expenses both increased by
approximately $1.6 million compared to the prior year. Revenues increased due to increased number of ambulance
runs caused by the growth in the population of the EMS service area. Expenses increased primarily from increased
salaries that resulted from the compensation study discussed previously.
10
General Fund Budgetary Highlights
The general fund expenditures were $2,743,503 more than the $37,155,522 budget. Overall activity in the General
Fund increased during the current year as the City emerged from the COVID-19 pandemic, although the amount of
growth was less than expected. Revenues were $1,144,325 more than budgeted, primarily due to increased
property and sales tax revenues. Overall, ending fund balance in the general fund was $3,284,862 higher than
budgeted.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital assets. The City's investment in capital assets for its governmental and business -type activities as of
September 30, 2022, amounts to $268,844,669 (net of accumulated depreciation), including several projects in
progress from voter approved bonds.
Governmental
Business -Type
Activities
Activities
Total
2022
2021
2022
2021
2022
2021
Land
$ 8,883,427
$ 8,310,986 $
2,415,017
$ 1,844,488
$ 11,298,444
$ 10,155,474
Water rights
-
-
70,245
70,245
70,245
70,245
Buildings and improvements
52,701,579
44,588,777
3,703,626
3,609,126
56,405,205
48,197,903
Machinery, equipment, and
-
vehicles
15,472,681
14,833,547
6,823,569
6,214,967
22,296,250
21,048,514
Infrastructure
136,194,073
129,206,285
115,715,584
105,832,113
251,909,657
235,038,398
Construction in progress
27,684,430
26,695,151
21,661,576
19,942,794
49,346,006
46,637,945
Accumulated depreciation
J 60,963,743}
[ 74,064,147} (
41,S1Jq�S
C 38,770,208]
t 122,481,138)
L112,834�355]
TOTALS
$ 159,972,447
$ 149,570,599 $_
108,872,222
$ 98,743,525
$ 268,844,669
$ _ 248,314,124
Significant capital asset activity for the year included improvements to streets and infrastructure of $16 million
and land purchases of $1.1 million.
Additional information on the City's capital assets can be found in note H.F. to the basic financial statements.
LONG TERM DEBT
At the end of the current fiscal year, the City of Schertz had total long-term debt outstanding of $118,036,445. 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
2022
2021
2022
2021
2022
2021
General obligation bonds
$ 55,070,000 $
40,390,000 $
4,265,000 $
2,895,000 $
59,335,000 $
43,285,000
Certificates of obligation
26,135,000
14,200,000
22,845,000
10,655,000
48,980,000
24,855,000
Financing arrangements
109,228
291,535
327,685
475,121
436,913
766,656
Premium on bonds
5,501,635
2,502,146
2,217,980
772,802
7,719,615
3,274,948
Compensated absences
1,200,065
1,178,062
364,852
364,852
1,564,917
1,542,914
TOTALS
$ 88,015,928 $
58,561,743 $
30,020,517 $
15,162,775 $�
1.18,036,445 $
73,724,518
Total debt increased compared to the prior year due to the issuance of multiple new bonds issued to fund future
construction and capital improvement projects throughout the City.
Additional information on the City's long-term debt can be found in note II.G. to the basic financial statements.
Economic Factors and Next Year's Budgets and Rates
At the end of the last fiscal year, the assigned and unassigned fund balance in the general fund increased to $13.6
million from $13.0 million. There was a decrease budgeted of $600 thousand in the original adopted budget but due
to the above expected performance of sales taxes and new commercial permits, the city was able to increase the
fund balance instead. The City of Schertz has appropriated $446,341 of this amount for spending in the 2023 fiscal
year budget in accordance to the City's fund balance policy. The approved tax rate decreased to $0.4950 from
$0.5121 per $100 of valuation.
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. The City's
property tax base continues to expand at around 3% per year while the long term sales taxes are growing at 7%
annually.
11
Through 2022 the Schertz industrial parks continued to see rising but competitive vacancy rates supporting brisk
speculative development, redevelopment and expansion in the existing industrial park, Northern Schertz, and
Southern Schertz.
In the existing industrial park, Building 4 remains empty while Buildings 5, 6 and 7 have all been leased. Industrial
development continued to push North along IH-35 across FM 3009 with Phelan -Bennet completing and filling
169,525 sq ft of speculative warehouse distribution on Four Oaks Lane. Doerr Lane Logistics Center is almost
complete, with 2/3 of the building pre -leased. Another 112,000 square foot warehouse/distribution center is set to
begin construction this year off FM 3009.
In Northern Schertz, redevelopment, expansion, and significant speculative development characterized 2022. In June
2021, Caterpillar again invested in Schertz with an estimated $24,000,000 adding an additional manufacturing line.
Sysco Central Texas site was awarded economic development incentives to secure a 100,000 sq ft expansion of their
existing facility, currently under construction.
In Southern Schertz, the SEDC and City staff continue to work with CORES on a 1.7M sq. ft. development of
speculative industrial product near the intersection of Loop 1604 and IH-10, kicking off industrial development along
IH-10.
Staff will continue to watch as the economy slows down. During COVID and the great recession, property values
continued to rise and no discernable impacts of foreclosures. Sales taxes have been recession resistant in Schertz
due to the business types and markets however, new residential development has slowed down over the past few
years. Staff is factoring this in its 5-year forecast for slower growth.
Overall, the City of Schertz continues to be an extremely attractive option as a center for logistics and distribution.
Accelerated by the rising demand for delivery to consumers and changes in supply chain management philosophy
moving from "just in time" to "just in case,"Schertz's location along IH-35 and IH-10 corridor continues to be a
strong advantage.
Requests for Information
This financial report is designed to provide a general overview of the City's finances for all those with an interest in
the government's finances. Questions concerning any of the information provided in this report or requests for
additional financial information should be addressed to the Office of the Finance Director, City of Schertz, 1400
Schertz Parkway, Schertz, Texas 78154.
12
BASIC
FINANCIAL STATEMENTS
CITY OF SCHERTZ, TEXAS
STATEMENT OF NET POSITION
SEPTEMBER 30, 2022
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
Primary Government
Governmental Business -Type
Activities Activities Total
$ 92,621,639 $ 28,415,782 $ 121,037,421
4,631,657 1,174,985 5,806,642
4,449, 274
-
4,449, 274
2,214,350
7,290,865
9,505,215
-
6,324
6,324
154,096
218,418
372,514
29,080
2,311
31,391
16,139)
16,139
-
869,564
16,041,389
16,910,953
-
1,839,607
1,839,607
90,909
-
90,909
669,699
-
669,699
-
18,180,600
18,180,600
8,883,427
52,701,579
15,472, 681
136,194, 073
27,684,430
80.963.743
265,686,576
2,415,017
70,245
3,703,626
6,823,569
115,715,584
21,661,576
41.517.395
182, 058, 642
11,298,444
70,245
56,405,205
22,296,250
251,909,657
49,346,006
( 122,481,138)
447, 745, 218
Deferred loss on debt refunding
506,739
6,756
513,495
Deferred OPEB related outflows
643,003
201,016
844,019
Deferred pension related outflows
3,160,127
988,110
4,148,237
Total Deferred Outflows of Resources
4,309,869
1,195,882
5,505,751
LIABILITIES
Accounts payable
2,839,420
3,436,486
6,275,906
Accrued liabilities
431,088
142,223
573,311
Retainage payable
344,364
266,714
611,078
Due to other governments
83,060
-
83,060
Unearned revenue
7,762,645
469,445
8,232,090
Accrued interest payable
486,669
189,147
675,816
Customer deposits
105,891
648,307
754,198
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, 2022
Primary Government
Governmental Business -Type
Activities Activities Total
$ 240,013 $ 72,971 $ 312,984
76,415 23,894 100,309
55,241 - 55,241
5,957,307 1,661,921 7,619,228
960,052
2,731,673
8,735,828
406,945
80.858.556
112,075,167
298,422
415,819
3,659, 994
4,374,235
109, 746, 340
447,481
967,885
1,646,618
26,077,746
969,581
1,550,080
1,086,297
11.055.015
$ 153,547,043
291,881
853,989
2,731,523
27, 993, 744
38,782,245
130,006
1,144,410
1,274,416
94,997,863
5,408,320
42, 791, 680
$ 143,197,863
1,251,933
3,585,662
11,467, 351
406,945
108.852.300
150,857,412
298,422
545,825
4,804,404
5, 648; 651
204, 744, 203
447,481
967,885
1,646,618
26,077,746
969,581
1,550,080
1,086,297
5,408,320
53.846.695
$ 296,744,906
14
CITY OF SCHERTZ, TEXAS
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2022
Program Revenues
Operating
Capital
Charges for
Grants and
Grants and
Functions/Programs
Expenses
Services
Contributions
Contributions
Primary government:
Governmental activities:
General government
$ 7,093,652
$ 686,470
$ 3,320,407
$ -
Public safety
19,580,703
3,922,957
641,528
-
Public environment
8,545,834
798,955
-
6,987,788
Parks and recreation
3,543,978
652,727
-
-
Cultural
1,168,815
310,859
8,094
-
Administration
4,455,947
-
-
Interest
2,490,474
-
-
-
Total Governmental Activities
46,879,403
6,371,968
3,970,029
6,987,788
Business -type activities:
Water and sewer 27,833,986 30,677,566 - 6,143,957
EMS 8,234,500 _ 9,420 909 - -
Total Business -Type Activities 36,0689486 40,098,475 - 6,143,957
Total Primary Government $ 82,947,889 $ 46,470,443 $ 3,970,029 $ 13,131,745
General revenues:
Taxes:
Ad valorem
Sales
Franchise fees
Hotel/motel
Mixed drink
Investment earnings
Miscellaneous
Transfers
Total General Revenues and Transfers
Change in Net Position
Net Position - Beginning
Net Position - Ending
The accompanying notes are an integral part
of these financial statements. is
Net !_Expensei Revenue and Changes in Net Position
Primary Government
Governmental Business -Type
Activities Activities
${ 3,086,775)
( 15,016,218)
( 759,091)
( 2,891,251)
( 849,862)
( 4,455,947)
{ 2,490,474}
( 29,549,618)
{ 29,549,618]
22,495,628
18,075,733
2,574,041
804,132
83,391
709,898
1,138,775
( 316,216}
45,565,382
16, 015, 764
137.531,279
8,987,537
1,186,409
10,173,946
10,173,946
314,546
675,739
316,216
1,306,501
11,480,447
131,717,416
$ 153,547,043 $ 143,197,863
Total
$( 3,086,775)
( 15,016,218)
( 759,091)
( 2,891,251)
( 849,862)
( 4,455,947)
2,490,474)
29, 549, 618)
8,987,537
1,186,409
10,173,946
{ 19,375,672)
22,495,628
18,075,733
2, 574, 041
804,132
83,391
1,024,444
1,814,514
46.871,883
27,496, 211
269, 248, 695
$ 296,744,906
16
CITY OF SCHERTZ, TEXAS
BALANCE SHEET
GOVERNMENTAL FUNDS
SEPTEMBER 30, 2022
General
Fund
ASSETS
Cash and cash equivalents $
12,128,331
Investments
2,404,552
Receivables (net of allowances)
Taxes
3,174,973
Accounts and other
2,128,452
Due from other funds
648,630
Inventory
154,096
Prepaid items
28,090
Restricted assets:
Cash and cash equivalents
869,564
Total Assets
21,536,688
LIABILITIES
Accounts payable
1,752,626
Accrued salaries and benefits
431,088
Retainage payable
-
Customer deposits
105,891
Due to other governments
83,060
Due to other funds
16,139
Unearned revenues
50,078
Total Liabilities
2,438,882
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
2,030,907
Total Deferred Inflows of Resources
2,030,907
FUND BALANCES
Nonspendable for:
Inventory
154,096
Prepaid items
28,090
Restricted for:
Police and public safety/municipal court
302,725
Municipal court
812,283
PEG capital fees
967,885
Capital improvement
-
Debt service
-
Tourism development
-
Parks and tree mitigation
-
Historical Committee and library
-
Economic development
-
Animal control
42,825
Scholarships
134,632
Committed for:
Capital Projects
-
Civic Center/CIED
1,021,594
Assigned for:
Property replacement
909,889
Subsequent year's budget
446,341
Unassigned
12,246,539
Total Fund Balances
17,066,899
Total Liabilities, Deferred Inflows of Resources,
and Fund Balances $
21,536,688
The accompanying notes are an integral part
of these financial statements. 17
Capital Projects Debt Service
Fund Fund
$ 42,594,424 $ 1,864,408
172,341
42,594,424 2;036,749
906,624 -
281,284 -
1,187,908 -
- 172,340
172,340
35,863,370 -
- 1,864,409
5,543,146 -
Y l,`tVOSJlO 1,00`-F, `FV7
$ 42,594,424 $ 2,036,749
Economic
American
Nonmajor
Development
Rescue Plan Act
Governmental
Corporation
Fund
Funds
$ 22,721,336
$ 7,816,119
$ 5,497,021
2,227,105
-
-
1,101,960
-
-
7,949
-
77,949
990
-
-
7,816,119
5,574,970
26,059,340
16,212
62,041
101,917
-
6,893
56,187
-
-
648,630
-
7,712,567
_ -
16,212
7,781,501
8062734
26,043,128
26,043,128
$ 26,059,340
34,618
34,618
$ 7,816,119
144,756
2,559,354
1,646,618
969,581
96,557
[ 648,630)
4,768,236
$ 5,574,970
18
Total
Governmental
Funds
$ 92,621,639
4,631,657
4,449, 274
2,214,350
648,630
154,096
29,080
869,564
105,618,290
2,839,420
431,088
344,364
105,891
83,060
664,769
7,762,645
12,231,237
2,203,247
2,203,247
154,096
28,090
447,481
812,283
967,885
38,422,724
1,864,409
1,646,618
969,581
96,557
26, 077, 746
42,825
134,632
5,543,146
1,021,594
909,889
446,341
11, 597,909
91,183,806
$ 105,618,290
CITY OF SCHERTZ, TEXAS
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
SEPTEMBER 30, 2022
Total Fund Balances - Governmental Funds $ 91,183,806
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.
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.
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.
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
Deferred loss
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.
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
Deferred outflows related to pensions
Deferred inflows related to pensions
Total OPEB liability
Deferred outflows related to OPEB
Deferred inflows related to OPEB
Net Position of Governmental Activities
159,972,447
82,514,293)
486,669)
( 5,501,635)
506,739
2,203,247
( 8,735,828)
3,160,127
( 3,659,994)
( 2,808,088)
643,003
( 415,819)
$ 153 .547 043
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, 2022
REVENUES
Taxes
Permits and fees
Service fees
Fines and fees
Intergovernmental
Investment earnings
Miscellaneous
Total Revenues
EXPENDITURES
Current:
General government
Public safety
Public environment
Parks and recreation
Cultural
Administration
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Bond issue costs
Total Expenditures
Excess (Deficiency) of Revenues
Over Expenditures
OTHER FINANCING SOURCES (USES)
Issuance of debt
Issuance of refunding debt
Premium on issuance of debt
Payment to refunding escrow agent
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
$ 29,892,435
2,204,543
2,134,517
657,480
1,730,576
90,883
613, 268
37, 323, 702
196,624
450,000
646,624
$ 7,182,900
143,428
75,000
7,401, 328
6,051,339 - -
18,243,849 - -
1,766,558 - -
2,567,764 - -
1,144,684 - -
3,991,262 - -
646,563 9,544,074 -
.i4,41G,U1y
468, 285
10, 012, 359
2,911,683 (_ 9365,735)
37,853
2,361,204]
( 2,323,351]
588,332
16,478, 567
$ 17,066,899
31, 540,000
2,778,912
3,285,112
2, 737'
37.601, 287
28,235,552
13,170,964
$ 41,406,516
4,805,000
1,779,157
90,626
6.674, 783
726,545
4,070,000
421,632
( 4,443,881)
2,737
50,488
777,033
1,087,376
$ 1,864,409
The accompanying notes are an integral part
of these financial statements. 20
Economic
Development
Corporation
$ 6,025,703
201,279
6,226,982
218,302
531,783
5,476,897
( 1,240,000]
1,240,000)
4,236,897
21,806,231
$ 26,043,128
American
Rescue Plan Act
Fund
2,422,438
34,375
2,456, 813
838,268
1,584,170
�i 2,422,438
34,375
34,375
243
$ 34,618
Nonmajor
Total
Governmental
Governmental
Funds
Funds
$ 804,132
$ 43,905,170
136,950
2,341,493
819,190
2,953,707
97,078
754,558
94,509
4,247,523
43,309
709,898
507
1,138,775
1,995,675
56,051,124
245,991
6,515,632
16,256
19,098,373
-
1,766,558
92,150
2,659,914
14,340
1,159,024
74,443
4,597,488
1,321,933
13,096,740
-
4,805,000
-
1,779,157
-
558,911
1,765.113
56.036.797
230r 562 14,327
31,540,000
4,070,000
3,200,544
( 4,443,881)
13,863 3,339,565
( 51,840} ( 3,655,781)
f 37.977) 34.050,447
192,585 34,064,774
4,575.651 57.119.032
$ 4,768,236 $. 91,183;806
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, 2022
Net Changes in Fund Balances - Governmental Funds $ 34,064,774
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 17,443,747
Depreciation expense ( 7,019,485)
The net effect of miscellaneous transactions involving capital assets (i.e., sales,
trade-ins, or donations) is to decrease net position. ( 22,414)
Revenues in the Statement of Activities that do not provide current financial
resources are not reported as revenues in the funds.
Property taxes 44,716
Court fines 127,755
The issuance of long-term debt (e.g. bonds) provides current financial resources to
governmental funds, while the repayment of the principal of long-term debt
consumes the current financial resources of governmental funds. Neither
transaction, however, has any effect on net position. Also, governmental funds
report the effect of premiums, discounts, and similar items when debt is first
issued, whereas the amounts are deferred and amortized in the Statement of
Activities.
Issuance of long-term debt ( 38,810,544)
Payment to escrow agent 4,443,881
Repayment of principal of long-term debt 4,937,587
Amortization of loss on refunding ( 60,378)
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 ( 22,003)
Net pension liability 1,305,763
Total OPEB liability ( 217,221)
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. ( 200,414)
Change in Net Position of Governmental Activities $ 16,015,764
The accompanying notes are an integral part
of these financial statements. 22
CITY OF SCHERTZ, TEXAS
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
SEPTEMBER 30, 2022
Business -Type
Activities
Governmental
Enterprise Funds
Activities
Total
Water and Schertz Enterprise
Internal
Sewer System EMS Fund
Service Fund
ASSETS
Current assets:
Cash and cash equivalents $
27,484,127 $
931,655 $
28,415,782 $ -
Investments
1,174,985
-
1,174,985 -
Accounts receivable, net of allowance:
Customer accounts
3,481,872
3,808,993
7,290,865 -
Due from other funds
-
16,139
16,139 -
Accrued interest
6,324
-
6,324 -
Inventory
99,102
119,316
218,418 -
Prepaids
-
2,311
2,311 -
Total Current Assets
32,246,410
4,878,414
37,124,824 -
Noncurrent assets:
Restricted assets:
Cash and cash equivalents
16,041,389
-
16,041,389 -
Investments
1,839,607
-
1,839,607 -
Investment in joint ventures
18,180,600
-
18,180,600 -
Capital assets:
Land
2,415,017
-
2,415,017 -
Water rights
70,245
-
70,245 -
Buildings and improvements
3,609,126
94,500
3,703,626 -
Machinery, equipment, and vehicles
3,400,352
3,423,217
6,823,569 -
Infrastructure
115,715,584
-
115,715,584 -
Construction in progress
21,661,576
-
21,661,576 -
Less: accumulated depreciation
39,523,557]
{ 1,993,838) [
41,517,395) -
Total Noncurrent Assets
143,409,939
1,523,879
144,933,818 -
Total Assets
175,656,349
6,402,293
182,058,642 -
DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on refunding
6,756
-
6,756 -
Deferred OPEB related outflows
61,922
139,094
201,016 -
Deferred pension related outflows
304,481
683,629
988,110 -
Total Deferred Outflows of Resources
373,159
822,723
1,195,882 -
The accompanying notes are an integral part
of these financial statements. 23
CITY OF SCHERTZ, TEXAS
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
SEPTEMBER 30, 2022
Business -Type
Activities
Governmental
Enterprise Funds
Activities
Total
Water and Schertz Enterprise
Internal
Sewer System EMS Fund
Service Fund
LIABILITIES
Current liabilities:
Accounts payable $
3,224,437 $
212,049 $
3,436,486 $ -
Accrued liabilities
-
142,223
142,223 -
Retainage payable
266,714
-
266,714 -
Customer deposits
648,307
-
648,307 -
Due to other funds
-
-
- -
Accrued interest
189,147
-
189,147 -
Unearned revenue
468,333
1,112
469,445 -
Current portion of long-term liabilities:
Compensated absences
25,045
47,926
72,971 -
Total OPEB liability
7,363
16,531
23,894 -
Long-term debt
1,580,000
81,921
1,661,921 -
Total Current Liabilities
6,409,346
501,762
6,911,108 -
Noncurrent liabilities:
Compensated absences
100,178
191,703
291,881 -
Total OPEB liability
263,072
590,917
853,989 -
Net pension liability
841,704
1,889,819
2,731,523 -
Long-term debt
27,747,980
245,764
27,993,744 -
Total Noncurrent Liabilities
28,952,934
2,918,203
31,871,137 -
Total Liabilities
35,362,280
3,419,965
38,782,245 -
DEFERRED INFLOWS OF RESOURCES
Deferred OPEB related inflows
40,054
89,952
130,006 -
Deferred pension related inflows
352,644
791,766
1,144,410 -
Total Deferred Inflows of Resources
392,698
881,718
1,274,416 -
NET POSITION
Net investment in capital assets
93,801,669
1,196,194
94,997,863 -
Restricted for construction
5,408,320
-
5,408,320 -
Unrestricted
41,064,541
1,727,139
42,791,680 -
Total Net Position $
140,274,530 $.
2�923,333 $
143,197,863 $ -
24
CITY OF SCHERTZ, TEXAS
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
Business -Type
Activities
Governmental
Enterprise Funds
_
Activities
Total
Internal
Water and
Schertz
Enterprise
Service
Sewer S, stem
EMS
Funds
Fund
OPERATING REVENUES
Fees charged to users
$ 30,298,038
$ 9,420,909
$ 39,718,947
$ -
Charges for premiums
-
-
-
4,292,996
Other charges
19,109
-
19,109
-
Miscellaneous
559,412
116,327
675,739
-
Total Operating Revenues
30,876,559
9,537,236
40,413,795
4,292,996
OPERATING EXPENSES
Personnel services
2,531,095
5,748,214
8,279,309
4,292,996
General and administrative
3,340,401
697,978
4,038,379
-
Contractual services
17,967,935
762,178
18,730,113
-
Supplies and maintenance
522,667
623,987
1,146,654
-
Depreciation
2,559,869
402,143
2,962,012
-
Total Operating Costs
26,921,967
8,234,500
35,156,467
4,292,996
Operating Income (Loss)
3,954,592
1,302,736
5,257,328
-
NON -OPERATING REVENUES (EXPENSES)
Investment revenue
307,487
7,059
314,546
-
Rent revenue
360,419
-
360,419
-
Interest expense
[ 912,019)
-
( 912,019)
-
Total Non -Operating Revenues (Expenses)
[ 244,113)
7,059
( 237,054]
-
Income before contributions and transfers
3,710,479
1,309,795
5,020,274
-
Transfers in
308,835
7,381
316,216
-
Capital contributions - impact fees
1,203,925
-
1,203,925
-
Capital contributions - dedicated assets
4,940,032
-
4,940,032
-
CHANGE IN NET POSITION
10,163,271
1,317,176
11,480,447_
-
NET POSITION - BEGINNING
130,111,259
1,606,157
131,717,416
-
NET POSITION - END OF YEAR
$ 140,274,530
$ 2,923,333
$ 143,197,863
$ -
The accompanying notes are an integral part
of these financial statements. 25
CITY OF SCHERTZ, TEXAS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers and users
Cash received from interfund services
Cash paid to employees for services
Cash paid to suppliers for goods and services
Net Cash Provided By Operating Activities
CASH FLOWS FROM NON -CAPITAL FINANCING
ACTIVITIES
Transfers from other funds
Net Cash Used in Non -Capital Financing Activities
CASH FLOWS FROM CAPITAL & RELATED FINANCING
ACTIVITIES
Acquisition and construction of capital assets
Capital contributions - impact fees
Proceeds from issuance of debt
Premium from issuance of debt
Interest paid on long-term debt
Principal paid on long-term debt
Net Cash Used in Capital and Related
Financing Activities
Business -Type
Activities
Governmental
Enterprise Funds
Activities
Water and Schertz Total
Internal
Sewer System EMS Enterprise
Service Fund
$ 30,702,467 $ 8,911,870 $ 39,614,337 $ -
- - - 4,292,996
( 2,637,637) ( 6,037,877) ( 8,675,514) ( 4,292,996)
( 22,047,319) [_ 2,142,119) ( 24,189,438} -
6,017,511 _ 731,874 6,749,385 -
308,835 7,381 316,216
308,835 7,381 316,216
( 7,350,994)
( 808,166) ( 8,159,160)
1,203,925
- 1,203,925
16,860,000
- 16,860,000
1,572,881
- 1,572,881
( 902,571)
( 3,880) ( 906,451)
[ 3,300,000]
{ 262,436) ( 3,562,436)
8,083,241 ( 1•,074,482) 7,008,759
CASH FLOWS FROM INVESTING ACTIVITIES
Sale (purchase) of investments ( 20,954) - ( 20,954)
Payments from rentals 360,419 - 360,419
Interest and investment earnings 307,487 7,059 314,546
Net Cash Provided By (Used in) Investing Activities 646,952 7,059 654,011
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
15,056,539
( 328,168) 14,728,371
8,197,023
1,259,823 9,456,846
20,271,954
- 20,271,954
28,468,977
1,259,823 29,728,800
27,484,127 931,655 28,415,782 -
16,041,389 - 16,041,389 -
$ 43,525,516 $ 931,655 $ 44,457,171 $ -
The accompanying notes are an integral part
of these financial statements.
26
CITY OF SCHERTZ, TEXAS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
Business -Type
Activities
Governmental
Enterprise Funds
Activities
Water and
Schertz
Total Internal
Sewer System
EMS
Enterprise Service Fund
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED BY OPERATING ACTIVITIES
Operating income (loss)
$ 3,954,592
$ 1,302,736 $
5,257,328 $ -
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities:
Depreciation
2,559,869
402,143
2,962,012 -
Change in investment in joint venture
( 1,438,934)
- (
1,438,934) -
Decrease (increase) in accounts receivable
( 208,117)
( 623,221) (
831,338) -
Decrease (increase) in inventory
( 16,219)
( 17,744) (
33,963) -
Increase (decrease) in deferred pension outflows
( 76,750)
( 176,851) (
253,601) -
Increase (decrease) in deferred OPEB outflows
646
( 6,814) (
6,168) -
Increase (decrease) in accounts payable
1,238,837
( 40,232)
1,198,605 -
Increase (decrease) in accrued liabilities
30,776
-
30,776 -
Increase (decrease) in customer deposits
21,155
( 2,145)
19,010 -
Increase (decrease)in unearned revenue
12,870
-
12,870 -
Increase (decrease) in compensated absences
-
-
- -
Increase (decrease) in net pension liability
{ 281,432)
( 609,531) (
890,963) -
Increase (decrease) in deferred OPEB inflows
7,090
16,596
23,686 -
Increase (decrease) in deferred pension inflows
205,166
463,578
668,744 -
Increase (decrease) in total OPEB liability
71962
23,359
31,321 -
Net cash provided by operating activities
$ 6,017,511
$ 731,874 $
6,749,385 $ -
SCHEDULE OF NON -CASH CAPITAL ACTIVITIES
Developer contributions of capital assets
$ 4,940,032
$ - $
4,940,032 $ -
Total non -cash capital activities
$ 4,940,032
$ - $
4,940,032 $ -
27
CITY OF SCHERTZ, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Schertz is a municipal corporation governed by an elected mayor and seven -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 Proiects Fund accounts for the acquisition and construction of major capital facilities
financed from bond proceeds, grants, and transfers from other funds.
The Debt Service Fund accounts for the resources accumulated and payments made for principal and
interest on long-term general obligation debt of governmental funds.
The Economic Development Corporation collects sales taxes to support business development and
expansion within the City.
The American Rescue Plan Act Fund records revenue and expenditures related to the City's COVID-
19 funding from the American Rescue Plan Act.
The City reports the following major enterprise funds:
The Water and Sewer System Fund accounts for the water and sewer services provided to the
citizens through user charges.
The EMS Fund accounts for the emergency medical services provided to the citizens of the City and
other participating governments through user charges.
Additionally, the City reports the following fund types:
The Internal Service Fund accounts for the City's group medical insurance program.
29
As a general rule, the effect of interfund activity has been eliminated from the government -wide financial
statements. Exceptions to this are charges between the City's general government function and various
other functions of the City. Eliminations of these charges would distort the direct costs and program
revenues reported for the various functions concerned.
Amounts reported as program revenues include 1) charges to customers or applications for goods, services,
or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions.
General revenues include all taxes and investment earnings.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues
and expenses generally result from providing services and producing and delivering goods in connection with
a proprietary fund's principal ongoing operations. The principal operating revenues of the water and sewer
enterprise fund and the EMS enterprise fund are charges to customers for sales and services. Operating
expenses for enterprise funds include the cost of sales and services, administrative expenses, and
depreciation on capital assets. All revenues and expenses not meeting this definition are reported as
nonoperating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted
resources first, then unrestricted resources as they are needed.
D. Cash and Cash Equivalents
The City's cash and cash equivalents are considered to be cash on hand and demand deposits. Cash is
reported as restricted when it has restrictions on its use narrower than the purpose of the fund in which it is
reported. This can result in differences in presentation between fund statements and government -wide
statements.
For purposes of the statement of cash flows, the City considers cash and other investments with maturities
of three months or less from the date of purchase to be cash and cash equivalents.
E. Investments
The City is authorized to invest in (1) obligations of the United States or its agencies and instrumentalities;
(2) direct obligations of the State of Texas or its agencies; (3) other obligations, the principal of and interest
on which are unconditionally guaranteed or insured by the State of Texas of the United States; (4)
obligations of states, agencies, counties, cities, and other political subdivisions of any state having been
rated of not less than "AA" or its equivalent; (5) certificates of deposit issued by state and national banks
domiciled in Texas that are guaranteed or insured by the Federal Deposit Insurance Corporation (FDIC) or its
successor, or secured by obligations mentioned above; and (6) fully collateralized direct repurchase
agreements having a defined termination date. In addition, the City is authorized to invest in local
government investment pools. The investment pools operate in accordance with appropriate state laws and
regulations and have regulatory oversight from the Texas Public Funds Investment Act Sec. 2256.0016.
Investments for the City are reported at fair value, except for the position in investment pools, which are
reported at net asset value per share (which approximates fair value) even though it is calculated using the
amortized cost method.
The City categorized its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. The fair value hierarchy, which has three levels, is based on the valuation
inputs used to measure an asset's fair value: Level 1 inputs are quotes prices in active markets for identical
assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable
inputs.
F. Receivables and Pavables
Activities between the funds that are representative of inter -fund loans outstanding at the end of the fiscal
year are referred to as due to/from other funds. Any residual balances outstanding between the
governmental activities and business -type activities are reported in the government -wide financial
statements as "internal balances".
Accounts receivable are reported net of allowances for uncollectible accounts. The allowance account
represents management's estimate of uncollectible accounts based upon experience and historical trends.
30
Property taxes for the City are levied each October 1 on the taxable value as of the preceding January 1, the
date a lien attaches, for all taxable real and personal property located in the City. Taxes are due by January
31 following the October 1 assessment date and become delinquent on February 1, at which time they begin
accruing penalty and interest. The enforceable legal claim date for property taxes is the assessment date;
therefore, the City did not record a receivable for accrual of future taxes at year end. Accordingly, no current
taxes receivable are reported. Delinquent taxes have been reported in the financial statements net of the
allowance for uncollectible taxes. Tax revenues are recognized as they become available. Accordingly, an
amount equal to taxes not yet available has been reported as unavailable revenue (a deferred inflow of
resources) at the government fund level.
G. Inventories and Prepaid Items
All inventories are valued at cost using the first-in/first-out (FIFO) method. Inventories of governmental
funds are recorded as expenditures when consumed rather than when purchased.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items in both governmental -wide and fund financial statements and in the fund financial statements
are offset by a nonspendable fund balance which indicates they do not represent "available spendable
resources". The cost of prepaid items is recorded as expenditures/expenses when consumed rather than
when purchased.
H. Restricted Assets
Certain proceeds from bonds, resources set aside for their repayment, and other restrictive agreements are
classified as restricted assets on the balance sheet because their use is limited by applicable bond covenants
and/or contractual arrangements.
I. Capital Assets
Capital assets, which include land, buildings and improvements, machinery, equipment, vehicles, and
infrastructure assets (i.e., roads, bridges, sidewalks, and similar items), are reported in the applicable
governmental or business -type activities columns in the government -wide financial statements. Capital
assets are defined by the City as assets with an initial, individual cost of more than $5,000 and an estimated
useful life in excess of one year. When capital assets are purchased, they are capitalized and depreciated in
the government -wide financial statements and the proprietary fund statements. Capital assets are recorded
as expenditures of the current period in the governmental fund financial statements.
Capital assets are valued at cost where historical records are available and at an estimated cost where no
records exist. Donated capital assets, donated works of art and similar items received as part of a service
concession arrangement are reported at acquisition value, rather than fair value.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend
asset lives are not capitalized. Improvements to capital assets that materially extend the life of the asset or
add to the value are capitalized. Major outlays for capital assets and improvements are capitalized as
projects are constructed.
Capital assets are depreciated over their useful lives on a straight-line basis as follows:
Use Lives
Assets Yea rs
Buildings and improvements 10 - 50
Machinery, equipment, and vehicles 2 - 20
Infrastructure 15 - 30
31
J. Deferred Inflows I 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 assets 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 assets that applies to a future period(s) and so will
not be recognized as an inflow of resources (revenue) until that time. The City has the following types of
items that qualify for reporting in this category.
• Unavailable revenue is reported only in the governmental funds balance sheet. These amounts are
deferred and recognized as an inflow of resources in the period that the amounts become available.
• Difference in projected and actual earnings on pension assets - This difference is deferred and amortized
over a closed five-year period.
• Difference in expected and actual pension and OPEB experience - This difference is deferred and
recognized over the estimated average remaining lives of all members determined as of the
measurement date.
• Changes in actuarial assumptions and other inputs -This difference is deferred and recognized overthe
estimated average remaining lives of all members determined as of the measurement date.
K. Compensated Absences
It is the City's policy to permit employees to accumulate earned but unused vacation and compensatory time
benefits. There is no liability for unpaid accumulated sick leave since the City does not have a policy to pay
any amounts when employees separate from service with the City. All vacation and compensatory time pay
is accrued when incurred in the government -wide and proprietary fund financial statements. A liability for
these amounts is reported in governmental funds only if they have matured, for example, as a result of
employee resignations and retirements. The general fund, water and sewer fund and the EMS fund are used
to liquidate compensated absences.
L. Pensions
The net pension liability, deferred inflows, and outflows of resources related to pensions, and pension
expense, information about the fiduciary net position of the Texas Municipal Retirement System (TMRS),
and additions to and deductions from TMRS's fiduciary net position have been determined on the same basis
as they are reported by TMRS. For this purpose, benefit payments (including refunds of employee
contributions) are recognized when due and payable in accordance with the benefit terms. Investments are
reported at fair value.
32
M. Other Post -Employment Benefits COPEB)
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.
• - � �1�7 •F1T�a
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. ettimates
The preparation of financial statements, in conformity with generally accepted accounting principles,
requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosures of contingent liabilities at the date of the financial statements and the reported
amounts of revenue and expenses during the reporting period. Actual amounts could differ from those
estimates.
R. Deficit Eauity
At September 30, 2022, the City has a deficit unassigned fund balance of $648,630 in the Grant Fund. This
deficit is due to timing differences between expenditures and reimbursements of grant funds.
S. Budgetary Information
Annual budgets are adopted on a basis consistent with generally accepted accounting principles for all
governmental funds except the American rescue plan act fund, library advisory board fund, grant special
revenue fund, police department forfeiture special revenue fund and the capital projects fund, which adopts
project -length budgets.
II. DETAILED NOTES ON ALL FUNDS AND ACTIVITIES
A. Cash, Cash Equivalents and Investments
As of September 30, 2022, the City had the following cash, cash equivalents and investments:
Reported Weighted Average
Value
Maturity (days)
Investment type:
LOGIC
$ 58,465,243
55
Lone Star Investment Pool
26,675,705
46
Texas CLASS
44,849,126
53
Certificates of Deposit
3,372,040
139
U.S. Agency Securities
3,235,363
535
Subtotal
136,597,477
Plus: depository and petty cash
9,027,493
Total cash and investments
$_ 145,624,970
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, 2022, 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, 2022, 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, 2022, 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 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, 2022, was $0.5121 per $100 of assessed
value.
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 3.5% of the previous year's effective tax rate.
Property taxes are recorded as receivables and unearned revenues at the time the taxes are assessed. In
governmental funds, revenues are recognized as the related ad valorem taxes are collected. Additional
amounts estimated to be collectible in the time to be a resource for payment of obligations incurred during
the fiscal year and therefore susceptible to accrual in accordance with generally accepted accounting
principles have been recognized as revenue. In the government -wide financial statements, the entire levy
is recognized as revenue, net of estimated uncollectible amounts (if any), at the levy date.
35
C. Receivables
Receivables as September 30, 2022 for the government's individual major funds and nonmajor funds in the
aggregate, including the applicable allowances for uncollectible accounts, are as follows:
Governmental Activities
Business -type
Activities
General
Economic
Debt
Nonmajor
Water and
Schertz
Fund
Development
Service
Funds
Sewer Fund
EMS
Receivables:
Property taxes
$ 385,410
$ -
$ 183,341
$ -
$ -
$ -
Sales tax
2,518,079
1,259,040
-
-
-
-
Occupancy taxes
-
-
-
77,949
-
Franchise taxes
587,337
-
-
-
-
-
Customers
-
-
-
-
3,555,135
9,379,959
Court fines
4,099,809
-
-
-
-
-
Other
488,356
7 949
-
-
-
Gross receivables
8,078,991
1,266,989
183,341
77,949
3,555,135
9,379,959
Less: allowance for
uncollectible accounts
( 2,461,407)
-
11,000)
-
( 73,263)
[ 5,570,966)
Net receivables $ 5,617,584 $ 1,266,989 $ 172,341 $ 77,949 $ 3,481,872 $ 3.808,993
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
Delinquent property taxes receivable $ 362,285
Court fines 1,668.622
Total General Fund 2.030.907
Debt Service Fund
Delinquent property taxes receivable 172,340
Total Debt Service Fund 172,340
Total Governmental Funds $ 2,203,247
Additionally, the proprietary funds and governmental activities statements of net position report various
deferred outflows and inflows of resources, primarily due to pensions and OPEB, that are summarized by
column. The following table presents the disaggregated amounts.
Deferred outflows:
Charge on refunding
Related to pensions
Related to OPEB - SDBF
Related to OPEB - Retiree
Health Plan
Total deferred outflow
Deferred inflows:
Service concession arrangement
Related to pensions
Related to OPEB - SDBF
Related to OPEB - Retiree
Health plan
Total deferred inflow
Business -type Activities
Governmental Water/
Activities Sewer EMS Totals
$ 506,739 $ 6,756 $ - $ 513,495
3,160,127 304,481 683,629 4,148,237
223,514 21,504 48,346 293,364
419,489 40.418 90,748 550,655
$ 4, 309, 869 $ 373,159 $ 822, 723 $ 5, 505, 751
$ 298,422 $ - $ - 298,422
3,659,994 352,643 791,766 4,804,403
67,267 6,472 14,550 88,289
348,552 33,583 75,402 457;537
$ 4.374,235 $ 392,698 $, 881,718 $ 1648,651
36
E. Interfund Balances and Transfers
The composition of interfund balances as of September 30, 2022 is as follows:
Due From Due To Amount Purpose
EMS General $ 16,139 Short-term pool cash loan
General Nonmajor Governmental 648,630 Short-term pool cash loan
The following schedule briefly summarizes the City's transfer activity for the year ending September 30,
2022:
Transfer From
Transfer To
Amount
General
Nonmajor governmental
$ 13,863
General
Capital Projects
2,045,112
General
Water and Sewer System
302,229
Nonmajor governmental
General
37,853
Nonmajor governmental
Water and Sewer System
6,606
Nonmajor governmental
EMS
7,381
EDC
Capital Projects
1,240,000
Capital Projects
Debt Service
2,737
F. Capital Assets
P
Suplement funds sources
Funding for various capital projects
Suplement funds sources
Close out completed grant into local funds
Close out completed grant into local funds
Close out completed grant into local funds
Funding for various capital projects
Suplement funds sources
Capital asset activity for the year ended September 30, 2022 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
$ 8,310,986 $ 572,441 $ - $ 8,883,427
26,695,151 9,056,294 { 8,067,015) 27,684,430
35,006,137 9,628,735 ( 8,067,015) 36,5671857
44,588,777 45,787 8,067,015 52,701,579
14,833,547 817,998 ( 178,864) 15,472,681
129,206,285 6,987,788 - 136,194,073
188,628,609 7,851,573 7,888,151 204,368,333
( 18,448,517) ( 1,612,535) - ( 20,061,052)
( 8,165,845) ( 1,241,549) 119,889 ( 9,287,505)
( 47,449,785) ( 4,165,401) - ( 51,615,186)
( 74,064,147) ( 7,019,485) 119,889 ( 80,963,743)
114,564 462 832,088 8,008,040 123_ _,404,590
$ 149,570,599 $ 10,460,823 $f 58,975) $ 159,972,447
37
Beginning
Balance
Reclassifications/ Ending
Additions Retirements Balance
Business -type activities:
Capital assets, not being depreciated:
Land
$ 1,844,488
Water rights
70,245
Construction in progress
19,942,794
Total capital assets, not being
depreciated
21,857,527
Capital assets being depreciated:
Buildings and improvements
3,609,126
Machinery, equipment, and vehicles
6,214,966
Infrastructure
105,832,113
Total assets being
depreciated
115,656,205
Less accumulated depreciation for:
Buildings and improvements
( 1,121,106)
Machinery, equipment, and vehicles
( 5,543,597)
Infrastructure
( 32,105,504)
Total accumulated depreciation
( 38,770,207)
Total capital assets being
depreciated, net
76.885,998
Business -type activities capital
assets, net
$ 98,743,525
$ 570,529 $ - $ 2,415,017
- - 70,245
6,662,221 ( 4,943,439) 21,661,576
7,232,750 ( 4,943,439) 24,1461838
94,500 - 3,703,626
823,427 ( 214,824) 6,823,569
9,883,471 - 115,715,584
10,801,398 [ 214,824) 126,242,779
( 158,786)
- ( 1,279,892)
{ 661,756)
214,824 ( 5,990,529)
( 2,141;470)
- [ 34,246,974)
{ 2,962,012)
214,824 ( 41,517,395)
7,839,386 - 84,725,384
$ 15,072,136 $( 4,943,439) $ 108,872,222
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:
General government
$
734,093
Public safety
1,131,288
Public environment
4,175,495
Parks and recreation
926,952
Cultural
44,286
Administration
7,371
Total
$
7,019,485
Business -type activities:
Water and sewer system
$
2,559,869
EMS
402,143
Total
$
2,962,012
Total Depreciation
$
9,981,497
G. Long -Term Debt
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 forthe year exceeded $50.4 million and
sales tax revenue was $18.5 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.
38
Changes in long-term debt for the year ending September 30, 2022 are as follows:
Beginning
Refunded/
Ending
Amount Due
Balance
Issued
Retired
Balance
Within One Year
Governmental activities:
General Obligation Bonds
$ 33,770,000
$ 22,605,000
$( 7,000,000)
$ 49,375,000
$ 3,330,000
Certificates of Obligation
14,200,000
13,005,000
( 1,070,000)
26,135,000
1,570,000
General Obligation Bonds -
Private Placement
6,620,000
-
( 925,000)
5,695,000
950,000
Tax Notes -
Private Placement
155,000
-
( 155,000)
-
-
Premium from Debt
2,502,146
3,200,544
( 201,055)
5,501,635
-
Financing Arrangement
136,535
-
( 27,307)
109,228
27,307
Compensated Absences
1.178,062
493,228
( 471,225)
1,200,065
240,013
Total governmental
$ 58,561.743
$_ 39,303,772
$( 9,849,587)
$ 88,015,928
$ 6,117,320
Business -type activities:
General Obligation Bonds
$ 2,055,000
$ 1,945,000
$( 370,000)
$ 3,630,000
$ 535,000
Certificates of Obligation
10,655,000
14,915,000
( 2,725,000)
22,845,000
840,000
General Obligation Bonds -
Private Placement
840,000
-
( 205,000)
635,000
205,000
Unamortized Premium
772,802
1,572,881
( 127,703)
2,217,980
-
Financing Arrangement
475,121
-
( 147,436)
327,685
81,921
Compensated Absences
364,852
145,941
{ 145,941
364,852
72,971
Total business -type $ 15,162,775 $ 18.578,822 $ 3 721 080) $ 30,020,517 $ 1,734,892
New Bonds Issued
In January 2022, the City issued Combination Tax and Limited Pledge Revenue Certificates of Obligation,
Series 2022 in the amount of $9,390,000. These certificates have interest rates ranging from 2.125% and
3.00% and will mature in February 2032. These certificates will be used to fund multiple public improvement
projects and are secured by the City's ad valorem tax revenue and utility system revenue.
In August 2022, the City issued Combination Tax and Limited Pledge Revenue Certificates of Obligation,
Series 2022A in the amount of $18,530,000. These certificates have interest rates ranging from 1.50% and
5,00% and will mature in February 2042. These certificates will be used to fund multiple public improvement
projects and are secured by the City's ad valorem tax revenue and utility system revenue.
In August 2022, the City issued General Obligation Bonds, Series 2022 in the amount of $18,535,000. These
certificates have interest rates ranging from 4.00% and 5.00% and will mature in February 2042. These
certificates will be used to fund multiple public improvement projects and are secured by the City's ad
valorem tax revenue and utility system revenue.
Refunding Bonds Issued (Current Refunding)
In October 2021, the City issued General Obligation Refunding Bonds, Series 2021 in the amount of
$6,015,000. These bonds have interest rates ranging from 2.00% and 3.00% and will mature in February
2028. These bonds will be used to refund the General Obligation Bonds, Series 2012 and the Tax and Limited
Pledge Revenue Certificates of Obligation, Series 2013 to provide a present value savings. The net proceeds
of $6,567,554 (net of costs of issuance, a premium of $623,125, and a cash contribution of $65,192) were
placed in an irrevocable escrow account to call the old bonds on the call date of February 1, 2022. The
refunding transaction reduced the City's total debt service payments by $710,634 and to obtain an economic
gain (difference between the present values of the debt service payments on the old and new debt) of
$668,440. The reacquisition price exceeded the book value of the old debt by $6,779, which was expensed in
the current year.
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, 2022, the City does
not have bonds considered defeased and outstanding.
39
A summary of the terms of long-term debt outstanding at September 30, 2022, is as follows:
Governmqntall
General Obligation Bonds
2014 Series, Refunding
2015 Series, Refunding
2016 Series
2017 Series
2018 Series, Refunding
2020 Series, Refunding
2021 Series, Refunding
2022 Series
Private Placement obligations
2007 Series GO
2018 Series GO Refunding
Certificates of Obligation
2016 Series A
2016 Series B
2017 Series
2018 Series
2019 Series
2022 Series
2022 Series A
Issue
Amount Maturity Rate Balance
8,450,000
2030
2.0% - 4.0%
7,050,000
4,185,000
2031
2.0% - 3.25%
1,140,000
5,880,000
2036
2.0% - 4.0%
4,350,000
3,935,000
2037
2.0% - 4.0%
3,170,000
5,830,000
2033
3.125% - 5%
4,440,000
7,555,000
2036
1.5% - 4%
6,620,000
4,070,000
2033
2% - 4%
4,070,000
18,535,000
2042
4% - 5%
18,535,000
6,000,000
2027
4.07%
1,925,000
6,035,000
2028
2.12%
3,770,000
2,375,000
2036
2.0% - 4.0%
1,300,000
1,475,000
2036
3.0% - 3.75%
1,130,000
4,935,000
2037
3.0% - 3.75%
3,520,000
4,845,000
2038
3.0% - 5.0%
3,935,000
4,015,000
2039
2.5% -5%
3,245,000
4,740,000
2042
2% - 5%
4,740,000
8,265,000
2042
4% - 5%
8,265,000
Total Governmental Long -Term Obligations
$ 81.205, 000
Issue
Amount
Maturity
Rate
Balance
Business -type Activities
General Obligation Bonds
2018 Series, Refunding
2,740,000
2026
3.125% - 5% $
1,685,000
2021 Series, Refunding
1,945,000
2033
2% - 3%
1,945,000
Certificates of Obligation
2018 Series
5,595,000
2028
3.0% - 5.0%
4,835,000
2019 Series
3,480,000
2039
2.5% - 5%
3,095,000
2022 Series
4,650,000
2042
2% - 5%
4,650,000
2022 Series A
10,265,000
2042
1.5% - 5%
10,265,000
Private Placement obligations
2013 Series GO Refunding
2,130,000
2025
2.58%
635.000
Total Business -Type Long -Term Obligations
$
27.110,000
40
Annual future debt service requirements of bonded debt as of September 30, 2022, are as follows:
Governmental activities:
General Obligation Bonds Certificates of Obligation
Year Ended
September 30. Principal Interest Total Principal Interest Total
2023 $ 3,330,000 $ 1,786,738 $ 5,116,738
2024
3,415,000
1,651,112
5,066,112
2025
2,845,000
1,523,238
4,368,238
2026
2,970,000
1,404,163
4,374,163
2027
3,090,000
1,280,663
4,370,663
2028-2032
17,490,000
4,442,890
21,932,890
2033-2037
9,985,000
2,044,744
12,029,744
2038-2042
6,250,000
645.000
6.895,000
Total $ 49,375,000 $ 14,778,547 $ 64,153,547
Private Placement Debt
General Obligation Bonds
Year Ended
September 30_ Principal Interest Total
2023
$ 950,000 $
144,740
$ 1,094,740
2024
980,000
117,214
1,097,214
2025
1,010,000
88,758
1,098,758
2026
1,035,000
59,428
1,094,428
2027
1,060,000
29,274
1,089,274
2028
660,000
6,996
666,996
Total
$ 5,695,000 $
446,410
$ 6,141�410
Business -type activities:
$ 1,570,000 $ 963,069 $ 2,533,069
1,455,000
899,619
2,354,619
1,375,000
838,219
2,213,219
1,310,000
780,719
2,090,719
1,195,000
727,356
1,922,356
6,735,000
2,839,534
9,574,534
7,910,000
1,467,100
9,377,100
4,585,000
370,988
4.955,988
$ 26,135,000 $ 8,886,603 $ 35,021,603
General Obligation Bonds Certificates of Obligation
Year Ended
September 30, Principal Interest Total Principal Interest Total
2023
$ 535,000 $
132,050
$ 667,050
2024
560,000
106,150
666,150
2025
595,000
78,825
673,825
2026
615,000
50,200
665,200
2027
175,000
32,150
207,150
2028-2032
980,000
76,125
1,056,125
2033-2037
170,000
1,700
171,700
2038-2042
-
-
-
Tota1
$ 3,630,000 $
477,200
$ 4,107,200
Private Placement Debt
General Obligation Bonds
Year Ended
September 30 Principal Interest Total
2023 $ 205,000 $ 13,739 $ 218,739
2024 215,000 8,321 223,321
2025 215,000 2,774 217,774
Total $ 63 5, 000 $ 24,833 $ 659,833
$ 840,000
$ 893,738
$ 1,733,738
855,000
852,713
1,707,713
890,000
809,813
1,699,813
945,000
765,438
1,710,438
985,000
718,763
1,703,763
5,665,000
2,850,288
8,515,288
6,910,000
1,609,481
8,519,481
5,755,000
461,931
6,216,931
$ 22,845,000
$ 8,962,163
$ 31,807,163
41
Financing Arrangements
The City enters into various agreements to finance machinery and equipment; they are classified as
financing arrangements due to the title of the financed assets transferring to the City. Therefore, capital
assets and a related financing arrangement obligation have been recorded at the present value of the
future minimum payments at the inception date. This private placement debt is secured by the purchased
equipment.
Future minimum payments on the financing arrangements are as follows:
Governmental Activities Business -type Activities
Year Ended
September 30,
Principal
Interest
2023 $
27,307
$ 819
2024
27,307
819
2025
27,307
819
2026
27,307
819
Total $
109,228
$ 3,276
Total Principal Interest Total
$ 28,126 $ 81,921 $ 2,458 $ 84,379
28,126 81,921 2,458 84,379
28,126 81,921 2,458 84,379
28,126 81L922 2,458 84,380
$ 112,504 $ 327,685 $ 91832 $_ 337,517
H. 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.
Business -type
Activities
Governmental
_
Water/
Activities
Sewer
EMS
Totals
Net pension liability
$
8,735,828
$
841,704
$ 1,889,819
$
11,467,351
Total OPEB liability:
Due within one year:
TMRS SDBF
$
8,943
$
862
$ 1,935
$
11,740
Retiree health plan
67,472
6,501
14,596
88,569
Total due within one year
76,415
7,363
16,531
100,309
Due in more than one year:
TMRS SDBF
870,037
83,702
188,189
1,141,928
Retiree health plan
1,861,636
179,370
402,728
2,443,734
Total due in more than one year
2,731,673
263,072
590,917
_3,585,662
Total OPEB liability
$
2,808,088
$
270,435
$ 607,448
$
3,685,971
Business -type
Activities
Governmental
Water/
Activities
Sewer
EMS
Totals
Pension expense
$[ 1,305,762]
$[ 153,016]
$( 322,806)
$( 1,781,584)
OPEB expense:
TMRS SDBF
99,151
7,840
19,043
126,034
Retiree Health Plan
118,071
7,860
14,099
140,030
Total OPEB expense
$
217,222
$
15,700
$ 33,142
$
266,064
42
III. OTHER INFORMATION
A. Retirement Plan
Plan Description. The City of Schertz participates as one of 901 plans in the nontraditional, joint
contributory, hybrid defined benefit pension plan administered by the Texas Municipal Retirement System
(TMRS). TMRS is an agency created by the state of Texas and administered in accordance with the TMRS
Act, Subtitle G, Title 8, Texas Government Code (the TMRS Act) as an agent multiple -employer retirement
system for municipal employees in the State of Texas. The TMRS Act places the general administration and
management of the system with a six -member Board of Trustees. Although the Governor, with the advice
and consent of the Senate, appoints the Board, TMRS is not fiscally dependent on the State of Texas. TMRS's
defined benefit pension plan is a tax -qualified plan under Section 401(a) of the Internal Service Code. TMRS
issues a publicly available annual comprehensive financial report (ACFR) that can be obtained at
www.tmrs.com.
All eligible employees of the City are required to participate in TMRS.
Benefits Provided. TMRS provides retirement, disability, and death benefits. Benefit provisions are adopted
by the governing body of the City, within the options available in the state statutes governing TMRS.
At retirement, the benefit is calculated as if the sum of the employee's contributions, with interest, and the
City -financed monetary credits with interest were used to purchase an annuity. Members may choose to
receive their retirement benefit in one of seven payment options. Members may also choose to receive a
portion of their benefit as a Partial Lump Sum Distribution in an amount equal to 12, 24, or 36 monthly
payments, which cannot exceed 75% of the member's deposits and interest.
The City grants monetary credits for service rendered of a theoretical amount equal to two times what would
have been contributed by the employee, with interest. Monetary credits, also known as the matching ratio,
are 200% of the employee's accumulated contributions and are only payable in the form of an annuity.
Beginning in 2008, the City granted an annually repeating (automatic) basis monetary credit referred to as
an updated service credit (USC) which is a theoretical amount that takes into account salary increases or
plan improvements. If at any time during their career an employee earns a USC, this amount remains in
their account earning interest at 5% until retirement. At retirement, the benefit is calculated as if the sum of
the employee's accumulated contributions with interest and the employer match plus employer -financed
monetary credits, such as USC, with interest were used to purchase an annuity. Additionally, initiated in
2008, the City provided on an annually repeating (automatic) basis cost of living adjustments (COLA) for
retirees equal to a percentage of the change in the consumer price index (CPI).
At the December 31, 2021 valuation and measurement date, the following employees were covered by the
benefit terms:
Inactive employees or beneficiaries currently receiving benefits 138
Inactive employees entitled to but not yet receiving benefits 267
Active employees 356
Total 761
Contributions. The contribution rates for employees in TMRS are either 5%, 6%, or 7% of employee gross
earnings, and the City matching percentages are either 100%, 150%, or 200%, both as adopted by the
governing body of the City. Under the state law governing TMRS, the contribution rate for each city is
determined annually by the actuary, using the Entry Age Normal (EAN) actuarial cost method. The
actuarially determined rate is the estimated amount necessary to finance the cost of benefits earned by
employees during the year, with an additional amount to finance any unfunded accrued liability.
Employees for the City were required to contribute 7% of their annual gross earnings during the fiscal year.
The contribution rates for the City were 16.45% and 16.36% in calendar years 2022 and 2021, respectively.
The City's contributions to TMRS for the year ended September 30, 2022 were $4,245,872 and were equal
to the required contributions.
Net Pension Liability. The City's Net Pension Liability (NPL) was measured as of December 31, 2021, and
the Total Pension Liability (TPL) used to calculate the Net Pension Liability was determined by an actuarial
valuation as of that date. The net pension liability is typically liquidated through the General Fund and
Enterprise Funds.
43
Actuarial Assumptions
The Total Pension Liability in the December 31, 2021 actuarial valuation was determined using the following
actuarial assumptions;
Inflation 2.50% per year
Overall payroll growth 2.75% per year
Investment rate of return 6.75% net of pension plan investment expense,
including inflation
Salary increases are based on a service -related table. Mortality rates for active members are based on the
PUB(10) mortality tables with the Public Safety table used for males and the General Employee table used
for females. Mortality rates for healthy retirees and beneficiaries are based on the Gender -distinct 2019
Municipal Retirees of Texas mortality tables. The rates for actives, healthy retirees and beneficiaries are
projected on a fully generational basis by Scale UMP to account for future mortality improvements. For
disabled annuitants, the same mortality tables for healthy retirees is used with a 4-year set -forward for
males and a 3-year set -forward for females. In addition, a 3.5% and 3.0% minimum mortality rate will be
applied to reflect the impairment for younger members who become disabled for males and females. The
rates are projected on a fully generational basis by Scale UMP to account for future mortality improvements
subject to the floor.
The actuarial assumptions were developed primarily from the actuarial investigation of the experience of
TMRS over the four-year period from December 31, 2014 to December 31, 2018. They were adopted in
2019 and first used in the December 31, 2019 actuarial valuation. The post -retirement mortality assumption
for healthy annuitants and Annuity Purchase Rate (APRs) are based on the Mortality Experience Investigation
Study covering 2009 through 2011 and dated December 31, 2013. In conjunction with these changes first
used in the December 31, 2013 valuation, the System adopted the Entry Age Normal actuarial cost method
and a one-time change to the amortization policy. Plan assets are managed on a total return basis with an
emphasis on both capital appreciation as well as the production of income, in order to satisfy the short-term
and long-term funding needs of TMRS.
The long-term expected rate of return on pension plan investments was determined using a building-block
method in which best estimate ranges of expected future real rates of return (expected returns, net of
pension plan investment expense and inflation) are developed for each major asset class. These ranges are
combined to produce the long-term expected rate of return by weighting the expected future real rates of
return by the target asset allocation percentage and by adding expected inflation. In determining their best
estimate of a recommended investment return assumption under the various alternative asset allocation
portfolios, GRS focused on the area between (1) arithmetic mean (aggressive) without an adjustment for
time (conservative) and (2) the geometric mean (conservative) with an adjustment for time (aggressive).
Asset Class
Long -Term Expected
Real Rate of Return
Target Allocation (Arithmetic)
Core Fixed Income
10.00%
5.30%
Non -Core Fixed Income
20.00%
1.25%
Global Public Equity
30.00%
4.14%
Real Estate
10.00%
3.85%
Real Return
10.00%
4.00%
Absolute Return
10.00%
3.48%
Private Equity
10.00%
7.75%
Tota 1 100.0%
44
Discount Rate
The discount rate used to measure the Total Pension Liability was 6.75%. The projection of cash flows used
to determine the discount rate assumed that employee and employer contributions will be made at the rates
specified in statute. Based on that assumption, the pension plan's Fiduciary Net Position was projected to be
available to make all projected future benefit payments of current active and inactive employees. Therefore,
the long-term expected rate of return on pension plan investments was applied to all periods of projected
benefit payments to determine the Total Pension Liability.
The below schedule presents the changes in the Net Pension Liability as of December 31, 2021:
Balance at 12/31/2020
Changes for the year:
Service cost
Interest
Difference between expected
and actual experience
Change in assumptions
Contributions - employer
Contributions - employee
Net investment income
Benefit payments, including refunds
of employee contributions
Administrative expense
Other changes
Netchanges
Balance at 12/31/2021
Increase (Decease)
Total Pension
Plan Fiduciary
Net Pension
Liability
Net Position
Liability
(a)
cbi
(a)-(b)
$ 84,773,362
$ 69,798,222
$ 14,975,140
4,211,795
-
4,211,795
5,766,957
-
5,766,957
1,060,260
-
1,060,260
-
3,831,461
( 3,831,461)
-
1,643,398
( 1,643,398)
-
9,113,755
( 9,113,755)
( 2,885,733)
( 2,885,733)
-
-
( 42,101)
42,101
-
288
288)
8,153,279
11,661,068
{ 3,507,789)
$, 92,926,641 $ 81,459,290 $ 11,467,351
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
(5.75W 16.75%) (7.75%)
Net pension liability $ 27,021,857 $ 11,467,351 $( 1,052,499)
Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions. For the year
ended September 30, 2022, the City recognized pension expense of $2,464,440. Also, as of September 30,
2022, the City reported deferred outflows of resources and deferred inflows of resources related to pensions
from the following sources:
Differences between expected and actual
economic experience
Changes in actuarial assumptions
Difference between projected and actual
investment earnings
Contributions subsequent to the measurement date
Total
Deferred Outflows Deferred Inflows
of Resources of Resources
$ 921,703 $ 139,864
111,275 -
- 4,664,539
3,115,259 -
$ 4,148,237 $ 4,804.403
�7
$3,115,259 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, 2023. 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,
2023
$( 620,349)
2024
( 1,686,611)
2025
( 801,407)
2026
( 673,554)
2027
10,496
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, 2021, the valuation and measurement date, consisted of:
Inactive employees or beneficiaries currently receiving benefits 107
Inactive employees entitled to but not yet receiving benefits 74
Active employees 356
Total 537
Contributions. The City contributes to the SDBF at a contractually required rate as determined by an
annual actuarial valuation, which was 0.14% for 2022 and 0.13% for 2021, of which 0.06% and 0.05%,
respectively, represented the retiree -only portion for each year, as a percentage of annual covered
payroll. The rate is equal to the cost of providing one-year term life insurance. The funding policy for the
SDBF program is to assure that adequate resources are available to meet all death benefit payments for
the upcoming year; the intent is not to prefund retiree term life insurance during employees' entire
careers. The City's contributions to the SDBF for the year ended September 30, 2021 were $5,233
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, 2021 actuarial valuation was
determined using the following actuarial assumptions and inputs:
Measurement year ended December 31,
Inflation rate
Discount rate
Actuarial cost method
Projected salary increases
Administrative expenses
Mortality Rates - Service Retirees
Mortality Rates - Disabled Retirees
2021
2.50% per annum
1.84%
Entry Age Normal Method
3.50% to 11.5% including inflation
All administrative expenses are paid through the
Pension Trust and accounted for under reporting
requirements under GASB Statement No. 68.
2019 Municipal Retirees of Texas Mortality Tables.
The rates are projeted on a fully generational bases
with scale UMP.
2019 Municipal Retirees of Texas Mortality Tables
with a 4 year set forward for males and a 3 year set -
forward for females. In addition, a 3.5% and 3%
minimum mortality rate will be applied to reflect the
impairment for younger members who become
disabled for males and females, respectively. The
rates are projected on a fully generational basis by
scale UMP to account for future mortality
improvements subject to the floor.
Changes in assumptions reflect the annual change in the municipal bond rate. The actuarial assumptions
used in the December 31, 2021 valuation were based on the results of an actuarial experience study for the
period December 31, 2014 to December 31, 2018.
Discount Rate. The SDBF program is treated as an unfunded OPEB plan because the SDBF trust covers
both actives and retirees and the assets are not segregated for these groups. As such, a single discount rate
of 2.00% was used to measure the total OPEB liability. Because the plan is essentially a "pay-as-you-go"
plan, the single discount rate is equal to the prevailing municipal bond rate. The source of the municipal
bond rate was fixed -income municipal bonds with 20 years to maturity that include only federally tax-
exempt municipal bonds as reported in Fidelity Index's "20-year Municipal GO AA Index" as of December 31,
2020.
Discount Rate Sensitivity Analysis. The following schedule shows the impact of the total OPEB liability
if the discount rate used was 1% less than and 1% greater than the discount rate that was used (1.84%)
in measuring the total OPEB liability.
1% Decrease in
Discount Rate
(0.84%)
Discount Rate
(1.84%)
Total SDB OPEB Liability $ 1,470,379 $ 1,153,668
1% Increase in
Discount Rate
2.84%)
920,379
47
Changes in the Total OPEB Liability. Total City's Total OPEB Liability (TOL), based on the above actuarial
factors, as of December 31, 2021, the measurement and actuarial valuation date, was calculated as follows:
Total OPEB
Liability
Balance at 12/31/2020
$ 1,033,078
Changes for the year:
Service cost
70,429
Interest
21,248
Difference between expected and actual experience
( 1,360)
Changes of assumptions or other inputs
42,012
Benefit payments, including refunds of employee contributions
11,739)
Net changes
120,590
Balance at 12/31/2021
$ 1,153,668
Changes in assumptions and other inputs reflect a change in the discount rate from 2.00% to 1.84%.
OPEB Expense and Deferred Inflows and Outflows of Resources Related to OPEB. For the year
ended September 30, 2022, the City recognized OPEB expense of $138,311. Also, as of September 30,
2022, the City reported deferred outflows and inflows of resources related to the TMRS OPEB from the
following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and
actual economic experience $ 39,131 $ 63,785
Changes in actuarial assumptions 250,387 24,504
Contributions subsequent to the measurement date 3,846 -
Tota l $ 293,364 $ 88,289
$3,846 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, 2023. 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,
2023
$ 46,633
2024
46,633
2025
41,314
2026
35,188
2027
26,365
Thereafter
5,096
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, 2021, the valuation date,
consisted of:
Inactive employees or beneficiaries currently receiving benefits 9
Inactive employees entitled to but not yet receiving benefits -
Active employees 314
Total
323
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 100% of the
monthly premiums which range based on the type of plan from $508 for a retiree only to $1,796 for a
retiree and their family.
The City's Retiree Health OPEB Liability (TOL) as of December 31, 2021, was calculated as follows:
Total OPEB
Liability
Balance at 12/31/2020
$ 2,466,556
Changes for the year:
Service cost
161,830
Interest
50,064
Difference between expected and actual experience
134,106
Changes of assumptions or other inputs
( 191,684)
Benefit payments, including refunds of employee contributions
( 88,569)
Net changes
65,747
Balance at 12/31/2021
$ 2,532,303
The actuarial valuation was performed as of December 31, 2021. Changes of assumptions reflect a change in
the discount rate from 2.00% as of December 31, 2020 to 1.84% as of December 31, 2021, 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 1.84% as well as what the
City's TOL would be if it were calculated using a discount rate that is 1-percentage point lower (0.84%) and
1-percentage point higher (2.84%) than the current rate:
1% Decrease in 1% Increase in
Discount Rate Discount Rate Discount Rate
(0.84%) (1.84%) (2.84%)
Total OPEB liability - retiree health $ 2,774,522 $ 2,532,303 $ 2,308,980
The following presents what the total OPEB liability of the City would be if it were calculated using healthcare
cost trend rates that are 1-percentage point lower or 1-percentage point higher than the current healthcare
cost trends:
Current Healthcare Cost
1% Decrease Trend Rate Assumption 1% Increase
Total OPEB liability - retiree health $ 2,218,593 $ 2,532,303 $ 2,905,944
49
For the year ended September 30, 2022, the City recognized OPEB expense of $219,176. Also, as of
September 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources
related to OPEB from the following sources:
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Differences between expected and actual economic experience $ 132,787 $ 236,516
Changes in actuarial assumptions 366,035 221,021
Contributions subsequent to the measurement date 51,833
Total $ 550,655 $ 457,537
$51,833 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, 2023. 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,
2023
$ 7,281
2024
7,281
2025
7,281
2026
7,281
2027
7,281
Thereafter
4,880
C. Joint Venture
Schertz/Seguin Local Government Corporation
The Schertz/Seguin Local Government Corporation is a public, nonprofit corporation organized to aid, assist,
and act on behalf of the cities of Schertz and Seguin in acquiring, constructing, maintaining, and operating a
water utility system. The participating governments have an ongoing financial responsibility to fund the
operation of the corporation through either purchase of services or by subsidizing the operations.
Payments to the corporation are generally for the purchase of water treatment and for covering the
Corporation's debt service requirements; they are reflected as "operating expenses" in the water and sewer
fund and totaled $3,913,110 for the year ended September 30, 2022. 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 $150,094,421 (as of September 30, 2021, the most recent year for which
information is available) to provide funds to build, improve, extend, enlarge and repair the Corporation's
utility system, fund a reserve, and pay the costs of bond issuance. The bond resolution pledges
intergovernmental contract revenues from the cities of Schertz and Seguin (the participating governments)
to bond holders. Under the intergovernmental water supply contract, the participating governments are
unconditionally obligated to pay their respective shares of annual contract revenue bond debt service from
the operation of their respective utility systems.
The organizing documents for the Corporation provide that, in the event of dissolution, the net assets of the
Corporation will be equally divided among the Cities of Schertz and Seguin. As such, the City's net
investment in the joint venture has been recorded in the Water and Sewer Fund in the amount of
$17,358,291. This amount reflects the City's portion of the net position of SSLGC as of September 30, 2021,
the most recent fiscal year for which information is available.
50
Cibolo Valley Local Government Corporation
The Cibolo Valley Local Government Corporation (CVLGC) is a public, nonprofit corporation organized to aid,
assist, and act on behalf of the cities of Schertz and Cibolo 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 $300,000 for the year ended September 30, 2022. Separate financial statements for the
CVLGC may be obtained from the City of Schertz, 1400 Schertz Parkway, Schertz, Texas 78154.
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 $822,309 as of September 30, 2021.
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 $4,093,278 from
taxing entities (net of administrative reimbursements) and remitted $3,325,000 to the developer as of
September 30, 2022.
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, 2022, the City did not reimburse any property taxes paid
under the terms of a Chapter 380 agreement.
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, 2022, 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:
SEDC - LGC 501.101
SEDC - LGC 501.103
Service Concession Arrangement
FY 2020-21 Amt. Est. Remaining Grant
555,554
2,940,000
The City entered into an agreement with Young Men's Christian Association of Greater San Antonio
("YMCA"), under which YMCA will operate and collect user fees from the Natatorium and Outdoor Pools for
the next 20 years. YMCA will pay the city $100,000 annually over the course of the arrangement to cover
costs of debt service related to the facility; the present value of these installment payments is estimated to
be $782,371. The City will approve the rates and services that YMCA will provide, however, YMCA will retain
all revenues earned from the operation of the Natatorium. The YMCA will remit all revenues received from
operating the Outdoor Pools to the City with the exception of revenues earned from YMCA specific programs.
As of September 30, 2022, 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 $760,608 on the government -wide
statements at year-end pursuant to the service concession arrangement, and a liability of $406,945 for the
present value of maintenance costs estimated over the life of the Service Concession arrangement. The
balance of these two amounts is recorded as a deferred inflow of resources.
Litigation
The City is the subject of various claims and litigation that have arisen in the course of its operations.
Management is of the opinion that the City's liability in these cases, if decided adversely to the City, will not
have a material effect on the City's financial position.
Cibolo Creek Municipal Authority
The Cibolo Creek Municipal Authority (CCMA) provides sewage treatment for the area in and around the City.
In Fiscal year 2014, the City entered into an agreement with CCMA to construct a sewage treatment facility
in the southern portion of the City to primarily serve citizens of the City but also neighboring Cities and
future development. Because the City would be the primary customer at this time, the agreement stipulates
that the City will pay all future debt service on the bonds issued by CCMA to finance the project. The City is
the sole member at this time, so it is responsible for 100% of the project costs. Should other members join,
the City's share of the costs would be reduced.
52
Future debt service on the CCMA bonds are as follows:
Year Ended
Se[)tember 30 Princi::al Interest Total
2023
$ 170,000
$ 242,800
$ 412,800
2024
175,000
237,700
412,700
2025
180,000
232,450
412,450
2026
185,000
225,250
410,250
2027
195,000
217,850
412,850
2028-2032
1,090,000
969,450
2,059,450
2033-2037
1,340,000
721,950
2,061,950
2038-2042
1,680,000
372,050
2,052,050
2043-2044
775,000
46 800
821,800
Total
$ 5,790,000
$ 3,266,300
$ 9,056,300
Construction Commitments
The City of Schertz has entered into commitments for various projects as follows:
Primary Government:
Estimated Project
Expended to
Estimated Future
Cost to City
Date
Commitment
Governmental Activities:
FM 78 and Main Street
$ 1,000,000
$ 235,006
$ 764,994
Fire Station 3
8,480,775
8,480,775
-
Building Improvements
1,600,000
72,560
1,527,440
Main Street Improvements
407,057
-
407,057
FM 1518 Street Improvements
5,000,000
600,656
4,399,344
Pedestrian Routes Project
350,000
149,234
200,766
Senior Center
800,000
793,181
6,819
YMCA -Bathroom Reovation
540,500
505,707
34,793
Window Replacement -Recreation Center
1,152,264
792,198
360,066
Total Governmental Commitments
19,330,596
11,629,317
7701.279
Business -Type Activities:
Woman Hollering WasteWater
5,940,424
1,211,157
4,729,267
Corbett Ground Storage Tank & Pumps
1,650,000
930
1,649,070
Corbett Elevated Water Tank
5,500,000
4,892,528
607,472
Trainer Hale Road Distribution Main
500,000
-
500,000
Scenic Hills/Greenridge
73,252
12,495
60,757
Oil -Water Separator
120,000
79,883
40,117
E Dietz Creek De -Silting
573,055
508,834
64,221
FM1103 Utility Relocation
1,315,000
1,265,958
�49,042
Total Business -Type Activities
15,671,731
7,971,785
7,699,946
Total Estimated Future Commitments
$ 35,002,327
$ 19,601,102
$ 15,401,225
Risk Management
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets;
errors and omissions; and natural disasters. The City contracts with the Texas Municipal League
Intergovernmental Risk Pool, a public entity risk pool currently operating as a common risk management and
insurance program providing insurance coverage in the following areas: general liability, automobile liability
and physical damage, law enforcement liability, worker's compensation, real and personal property, mobile
equipment, and errors and omissions liability. TML is a multi -employer group that provides for a
combination of risk sharing among pool participants and stop loss coverage. Contributions are set annually
by the provider. Liability by the City is generally limited to the contributed amounts. There were no
significant increases or decreases in coverage from the prior year. For the past three fiscal years, no claims
or settlements have exceeded deductible amounts.
53
E. 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. 94, Public -Private and Public -Public Partnerships and Availability Payment Arrangements -
The primary objective of this Statement is to improve financial reporting by addressing issues related to
public -private and public -public partnership arrangements (PPPs). As used in this Statement, a PPP is an
arrangement in which a government (the transferor) contracts with an operator (a governmental or
nongovernmental entity) to provide public services by conveying control of the right to operate or use a
nonfinancial asset, such as infrastructure or other capital asset (the underlying PPP asset), for a period of
time in an exchange or exchange -like transaction. GASB 94 will become effective for reporting periods
beginning after June 15, 2022, and the impact has not yet been determined.
Statement No. 96, Subscription -Based Information Technology Arrangements - This Statement provides
guidance on the accounting and financial reporting for subscription -based information technology
arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA;
(2) establishes that a SBITA results in a right -to -use subscription asset —an intangible asset —and a
corresponding subscription liability; (3) provides the capitalization criteria for outlays other than
subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures
regarding a SBITA. To the extent relevant, the standards for SBITAs are based on the standards
established in Statement No. 87, Leases, as amended. This Statement will become effective for reporting
periods beginning after June 15, 2022, and the impact has not yet been determined.
GASB Statement No. 100, Accounting Changes and Error Corrections —an amendment of GASB Statement
No. 62 - The primary objective of this Statement is to enhance accounting and financial reporting
requirements for accounting changes and error corrections to provide more understandable, reliable,
relevant, consistent, and comparable information for making decisions or assessing accountability. This
Statement will become effective for reporting periods beginning after June 15, 2023, and the impact has
not yet been determined.
GASB Statement No. 101, Compensated Absences - The objective of this Statement is to better meet the
information needs of financial statement users by updating the recognition and measurement guidance for
compensated absences. That objective is achieved by aligning the recognition and measurement guidance
under a unified model and by amending certain previously required disclosures. This Statement will
become effective for reporting periods beginning after December 15, 2023, and the impact has not yet
been determined.
S4
REQUIRED
SUPPLEMENTARY INFORMATION
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
GENERAL FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2022
Variance With
Final Budget
Original
Final
Actual
Positive
Budget
Budget
Amounts
(Negative)
REVENUES
Taxes
$ 28,327,000 $
28,799,800 $
29,892,435
$ 1,092,635
Permits and fees
1,767,470
1,767,470
2,204,543
437,073
Service fees
1,802,762
1,802,762
2,134,517
331,755
Fines and fees
832,281
832,281
657,480
( 174,801)
Intergovernmental
1,669,014
2,219,014
1,730,576
( 488,438)
Investment earnings
135,000
135,000
90,883
( 44,117)
Miscellaneous
623,050
623,050
613,268
L 9,782)
Total Revenues
35,156,577
36,179,377
37 323,702
1,144,325
EXPENDITURES
General government:
Council
City manager
Municipal court
311 customer relations
Planning & zoning
Legal
City secretary
Nondepartmental
Public affairs
Engineering
Citizens assistance
Special events
Total General Government
Public safety:
Police department
Fire department
Inspection
Total Public Safety
Public environment:
Streets
Total Public Environment
Parks and recreation:
Parks
Pools
Community/Civic Center
Total Parks and Recreation
Cultural:
Library
Total Cultural
129,252
1,333,588
388,838
117,235
326,153
140,000
216,259
1,874,372
642,486
946,519
342,666
24,000
6,481,368
129,252
1,397,729
404,538
124,385
677,715
140,000
224,159
2,099,804
681,986
991,034
312,666
24,000
7,207,268
100,694
1,341,557
372,395
118,400
230,653
110,717
221,127
1,699,984
632,794
904,710
282,518
29,568
6,045,117
28,558
56,172
32,143
5,985
447,062
29,283
3,032
399,820
49,192
86,324
30,148
5,568)
1,162,151
10,672,966
11,015,766
10,592,956
422,810
6,614,057
7,217,866
7,029,409
188,457
1,088,400
1,045,000
1,011,446
33,554
18, 375,423
19, 278,632
18,633,811
644,821
1,926,970
2,002,970
1,926,603
76,367
1,926,970
2,002,970
1,926,603
76,367
1,661,936
1,823,731
1,593,522
230,209
569,878
569,878
589,272 (
19,394)
384,945
414,245
395,000
19,245
2,616,759
2,807,854
2,577,794
230,060
1,161,611
1,189 773
1;144,684 _
45.,089
1,161,611
1,189, 773
1,144,684
45,089
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
GENERAL FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2022
Variance With
Final Budget
Original
Final
Actual
Positive
Budi:et
Budget
Amounts
(Negative)
EXPENDITURES (CONTINUED)
Administration:
Information technology
2,707,439
2,743,139
2,653,434
89,705
Human resources
738,019
755,469
654,569
100,900
Finance
704,969
738,569
728,343
10,226
Purchasing & asset management
257,714
281,914
277,858
4,056
Building maintenance
1,816,339
1,929,739
1,638,402
291,337
Fleet service
1,304,158
1,306,111
1,217,320
88,791
Interfund charges
( 3,085,916.. (
3,085,916)
( 3,085,910
-
Total Administration
4.442,722
4,669,025
4,084,010
585,015
Total Expenditures
35 004.853
37,155,522
34C412,019
2,743,503
Excess of revenues over expenditures
151,724 (
976,145)
2,911,683
3,887,828
OTHER FINANCING SOURCES (USES)
Transfers in
237,706
237,706
37,853
( 199,853)
Transfers out (
877,979)
( 1,958,091) (
2,361,204]
( 403,113)
Total Other Financing Sources (Uses) (
640,273)
( 1,720,385) (
2,323,351)
( 602,966)
NET CHANGE IN FUND BALANCE (
488,549)
( 2,696,530)
588,332
3,284,862
FUND BALANCE - BEGINNING
16,478,567
16,478,567
16 478.567
-
FUND BALANCE - ENDING $
15,990,018
$ 13,782,037 $_
17,066,899
$ 3,284,862
56
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
ECONOMIC DEVELOPMENT CORPORATION
FOR THE YEAR ENDED SEPTEMBER 30, 2022
Variance With
Final Budget
Original
Final
Actual
Positive
Budget
Budget
Amounts
Ne ,ative,
REVENUES
Taxes $
5,408,000 $
5,408,000 $
6,025,703
$ 617,703
Investment income
141,000
141,000
201,279
60,279
Total Revenues
5,549,000
5,549,000
6,2260982
677,982
EXPENDITURES
Current:
General government
3,726,923
3,725,423
218,302
3,507,121
Administration
573,784
575,284
531,783
43,501
Total Expenditures
4,300,707
4,300,707
750,085
3,550,622
OTHER FINANCING SOURCES (USES)
Transfers out
-
- (
1,240,000)
1,240,000)
Total Other Financing Sources (Uses)
-
- (
1,240,000)
1,240,000)
NET CHANGE IN FUND BALANCE
1,248,293
1,248,293
4,236,897
2,988,604
FUND BALANCE - BEGINNING
21,806,231
21,806,231
21,806,231
-
FUND BALANCE - ENDING $
23;OS4,524 $
23,054,524 $
26,043,128
$ 2,988,604
�*I
CITY OF SCHERTZ, TEXAS
NOTES TO BUDGETARY SCHEDULES
SEPTEMBER 30, 2022
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, economic development corporation fund, hotel occupancy tax fund, park fund,
tree mitigation, police forfeiture fund, library advisory board fund, and the historical committee fund. Project -
length financial plans are adopted for capital projects funds.
Budgetary preparation and control are exercised at the department level. Actual expenditures may not legally
exceed appropriations at the fund level. Appropriations lapse at year-end.
For the fiscal year ended September 30, 2022, 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, 2022
Measurement Date December 31,
2021
2020
2019
Total pension liability
Service cost
$ 4,211,795
$ 3,761,994
$ 3,421,878
Interest on total pension liability
5,766,957
5,326,206
4,898,478
Difference between expected and actual
experience
1,060,260
( 154,592)
( 108,478)
Change of assumptions
-
-
263,015
Benefit payments/refunds of contributions
2,885,733)
L 2,372,023)
�_ 2,244,447)
Net Change in Total Pension Liability
8,153,279
6,561,585
6,230,446
Total Pension Liability, Beginning
84,7731362
78,211,777
71,981,331
Total Pension Liability, Ending (a)
$ 92,926,641
$ 84,773,362
$ 78.211 777
Plan fiduciary net position
Contributions - employer
$ 3,831,461
$ 3,327,434
$ 3,163,340
Contributions - employee
1,643,398
1,474,466
1,380,585
Net investment income
9,113,755
4,760,749
8,093,416
Benefit payments/refunds of contributions
( 2,885,733)
( 2,372,023)
( 2,244,447)
Administrative expenses
( 42,101)
( 30,767)
( 45,681)
Other
288
L 1200
1,373)
Net Change in Fiduciary Position
11,661,068
7,158,659
10,345,840
Fiduciary Net Position, Beginning
_ 69,798,222
62,639,563
52,293,723
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
81,459,290 69,798,222 62,639,563
$ 11,467,351 $ 14,975,140 $_ 15,572,214
87.66% 82.34% 80.09%
$ 23,477,118 $ 21,063,794 $ 19,722,641
48.84% 71.09% 78.96%
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
2018 2017 2016 2015 2014
$ 3,301,265
$
3,073,538
$ 2,855,745
$
2,724,337
$ 2,558,743
4,505,483
4,111,517
3,763,562
3,556,428
3,245,266
34,393
416,585
139,216
120,434
( 122,286)
-
-
-
59,193
-
1.914,159)
(
1,843,774}
( 1,581,272}
1,570 211
[ 1,068,487}
5,926,982
5,757,866
5,177,251
4,890,181
4,613,236
66 054,349
60,296,483
55,119,232
50,229,051
45,615,815
$ 71.981,331
$
66,054,349
$ 60,296,483
$
55,119,232
$ 50,229,051
$ 3,033,936
$
2,793,644
$ 2,627,335
$
2,542,565
$ 2,403,929
1,326,518
1,232,232
1,152,864
1,095,260
1,077,097
( 1,540,890)
5,999,805
2,602,572
53,742
1,841,586
( 1,914,159)
(
1,843,774)
( 1,581,272)
(
1,570,211)
( 1,068,487)
( 29,768)
(
31,080)
( 29,385)
(
32,727)
( 19,219)
[ 1,554)
(
1,575}
( 1,583)
1,616)
t _ _ _ 1,580)
874,083
8,149,252
4,770,531
2,087,013
4,233,326
51,419,640
43,270,388
38,499,857
36.412,844
32.179,518
52.293,723
51,419,640
43,270,388
38,499,857
36.412,844
$ 19,687,608
$__
14,634,709
$ 17,026,095
$
16,619,375
$ 13,816,207
72.65% 77.84%
$ 18,896,766 $ 17,603,310 $
104.19% 83.14%
71.76%
16,478,620 $
103.32%
69.85%
15,648,114 $
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, 2022
Fiscal Year Ended September 30,
Actuarially determined contribution
Contributions in relation to the actuarially
determined contribution
Contribution deficiency (excess)
2022 2021 2020
$ 4,245,872 $ 3,700,948 $ 3,235,479
4,245,872 3,700,948 _ 3,235,479
Covered payroll 26,163,046 22,879,083 20,401,412
Contributions as a percentage of covered payroll 16.23% 16.18% 15.86%
Note: GASB Statement No. 68 requires 10 years of data to be provided in this schedule. As of year-end, all
years are not available. Additional years will be added in the future as the information becomes available.
NOTES TO SCHEDULE OF CONTRIBUTIONS
Valuation Date:
Actuarially determined contribution rates are calculated as of December 31st and become effective on
January 1st, 13 months and a day later.
Methods and Assumptions Used to Determine Contribution Rates:
Actuarial cost method
Entry age normal
Amortization method
Level percentage of payroll, closed
Remaining amortization period
25 years
Asset valuation method
10 year smoothed market; 12% soft corridor
Inflation
2.5%
Salary increases
3.50% to 11.50% including inflation
Investment rate of return
6.75%
Retirement age
Experience -based table of rates that are specific to
the City's plan of benefits. Last updated for the 2019
valuation pursuant to an experience study of the
period 2014-2018.
Mortality
Post -retirement: 2019 Municpal Retirees of Texas
Mortality Tables. The rates are projected on a fully
generational basis with scale 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 LIMP.
61
2019
2018
2017
2016
2015
3,129,413 $
2,971,592 $
2,756,511 $
2,592,593 $
2,487,856
3,129,413
2,971,592
2,756,511
2,592,593
2,487,856
19,520,269
18,605,654
17,347,849
16,175,988
15,486,735
16.03%
15.97%
15.89%
16.03%
16.06%
62
CITY OF SCHERTZ, TEXAS
SCHEDULE OF CHANGES IN TMRS OTHER POST -EMPLOYMENT BENEFIT LIABILITY
AND RELATED RATIOS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
Measurement Date December 31, 2021 2020 2019 2018 2017
Total OPEB liability
Service cost
$ 70,429
$ 50,554
$ 33,528
$ 37,794
$ 29,926
Interest on total OPEB liability
21,248
22,915
26,904
21,182
20,123
Differences in actuarial experience
( 1,360)
( 4,382)
( 105,282)
86,276
-
Change of assumptions
42,012
158,118
148,494
( 54,027)
57,257
Benefit payments
( 11,739.
4,213)
( 3,945)
( 3,779}
( 3,521)
Net change in total OPEB liability
120,590
222,992
99,699
87,446
103,785
Total OPEB liability, beginning
1,033,078
810,086
710,387
622,.941
519,156
Total OPEB liability, ending (a)
$ 1,1530668
$ 1,033,078
$ 810,086
$ 710,387
$_ 622,941
Covered -employee payroll
$ 23,477,118
$ 21,063,794
$ 19,722,641
$ 18,896,766
$ 17,603,310
Total OPEB liability as a percentage of
covered -employee payroll
4.91%
4.90%
4.11%
3.76%
3.54%
Note: 10 years of data is required to be provided in this schedule. As of year-end, all years are not available. Additional years will
be added in the future as the information becomes available.
NOTES TO SCHEDULE
Valuation Date:
Actuarially determined contribution rates are calculated as of December 31st and become effective on January 1st, 13 months
and a day later.
Methods and Assumptions Used to Determine Contribution Rates:
Inflation
2.50%
Salary increases
3.50% to 11.50% including inflation
Discount rate
2.00%
Administrative expenses
All administrative expenses are paid through the Pension Trust and
accounted for under reporting requirements under GASB Statement
No. 68.
Mortality rates - service retirees
2019 Municipal Retirees of Texas Mortality Tables. The rates are
projected on a fully generational basis with scale UMP.
Mortality rates - disabled retirees
2019 Municipal Retirees of Texas Mortality Tables with a 4 year
setforward for males and a 3 year set -forward for females. In addition,
a 3.5% and 3% minimum mortality rate will be applied to reflect the
impairment for younger members who become disabled for males and
females, respectively. The rates are projected on a fully generational
basis by Scale UMP to account for future mortality improvements
subject to the 3% floor.
Other information
No assets are accumulated in a trust that meets the criteria in
paragraph 4 of Statement No. 75 to pay related benefits.
Changes in actuarial assumptions reflect changes in the discount rate
and, in 2019, changes in assumptions adopted from review of plan
provisions.
63
CITY OF SCHERTZ, TEXAS
SCHEDULE OF CHANGES IN CITY RETIREE HEALTH OTHER POST -EMPLOYMENT BENEFIT
LIABILITY AND RELATED RATIOS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
Measurement Date December 31, 2021 2020 2019 2018 2017
Total OPEB liability
Service cost
Interest on total OPEB liability
Difference in actuarial experience
Change of assumptions
Benefit payments
Net change in total OPEB liability
Total OPEB liability, beginning
Total OPEB liability, ending (a)
Covered payroll
Total OPEB liability as a percentage of
covered payroll
$ 161,830 $
141,084 $
125,648 $
121,821 $ 107,517
50,064
60,561
78,646
67,947 69,435
134,106
4,341 (
343,086)
14,962 -
( 191,684)
161,146
275,398 (
81,106) 96,092
( 88,569} { 64,499) ( 59,401} ( 57,530) ( 42,189}
65,747 302,633 77,205 66,094 230,855
2,466,556 2,163,923 2,086,718 2,020,624 1,789,769
$ 2,532,303 $ 2,466,556 $ 2,163,923 $ 2,086,718 $ 2,020,624
$ 23,290,477 $ 20,870,983 $ 19,521,924 $ 18,974,951 $ 16,068,891
10.87% 11.82% 11.08% 11.00% 12.57%
Note: 10 years of data is required to be provided in this schedule. As of year-end, all years are not available. Additional years will
be added in the future as the information becomes available.
NOTES TO SCHEDULE
Valuation Date: December 31, 2021
Methods and Assumptions Used to Determine Contribution Rates:
Actuarial cost method
Individual entry -age
Discount rate
1.84% as of December 31, 2021
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 13
years.
Participation rates For all non -Medicare retirees, 30% if retiring from age 50 to 59, and
35% if retiring from age 60 to 64.
Other information The discount rate changed from 2.00% as of December 31, 2020 to
1.84% as of December 31, 2021. Additionally, the period of service
used for the allocation of service costs was changed to only reflect
service with the City of Schertz and the dependent coverage
assumption for males was increased.
64
SUPPLEMENTARY INFORMATION
Comparative Schedules — Governmental Funds
General Fund
Economic Development Corporation
Debt Service Fund
Capital Projects Fund
American Rescue Plan Act Fund
Combining Statements and Individual Fund Schedules - Nonmaior Governmental Funds
Hotel Occupancy Fund - will account for proceeds of hotel occupancy taxes to be used strictly for those
kinds of programs that promote the tourism industry.
Park Fund - will account for revenues from developers' fees (in lieu of park land dedication), grants, and
donations and is designed to monitor and manage improvement of the City's park system.
Tree Mitigation Fund - will account for revenues from permits, grants and donations to preserve and replace
trees in the City.
Treasury Forfeitures Fund - will account for revenue received from drug related cases in conjunction with
other law enforcement agencies within the jurisdiction of the U.S. Treasury department.
Justice Forfeitures Fund - will account for revenue received from drug related cases in conjunction with
other law enforcement agencies within the jurisdiction of the US Department of Justice.
State Forfeitures Fund - will account for revenue received from drug related cases in conjunction with other
law enforcement agencies within the jurisdiction of the State Forfeiture Program.
Grant Fund - will account for revenue and expenditures related to federal and state grant programs.
Library Advisory Board - to account for certain fees generated at the library to be used by the Board for
general improvements to the Library.
Historical Committee Fund - will account for funds received for the preservation of the history of the City.
Capital Recovery Roadways Fund - to account for a fee assessed for capital recovery on new construction.
CITY OF SCHERTZ, TEXAS
COMPARATIVE BALANCE SHEETS
GENERAL FUND
SEPTEMBER 30, 2022
(WITH COMPARATIVE TOTALS FOR 2021)
ASSETS
Cash and cash equivalents
Investments
Receivables (net of allowances)
Taxes
Accounts and other
Due from other funds
Inventory
Prepaid items
Restricted assets:
Cash and cash equivalents
Total Assets
LIABILITIES
Accounts payable
Accrued salaries and benefits
Retainage payable
Customer deposits
Due to other governments
Due to other funds
Unearned revenues
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total Deferred Inflows of Resources
FUND BALANCES
Nonspendable for:
Inventory
Prepaid items
Restricted for:
Police and public safety/municipal court
Municipal court
PEG capital fees
Animal control
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
2022
2021
$ 12,128,331 $
11,733,703
2,404,552
2,514,059
3,174,973
2,924,472
2,128,452
1,636,735
648,630
678,444
154,096
134,373
28,090
28,090
869,564
946,454
21,536,688
20,596,330
1,752,626
921,978
431,088
1,180,560
-
1,007
105,891
60,492
83,060
16,139
16,139
40,589
50,078
-
2,438,882
2,220,765
2,030,907 1,896,998
2,030,907_ 1,896,998
154,096 134,373
28,090 28,090
302,725
287,199
812,283
816,152
967,885
889,139
42,825
42,416
134,632
116,505
1,021,594 907,676
909,889 902,849
446,341 598,549
12, 246, 539 11, 755, 619
17,066 899 16,478,567
$_ 21,536,688 $ 20,596,330
65
CITY OF SCHERTZ, TEXAS
COMPARATIVE SCHEDULES OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
GENERAL FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2022
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED 2021)
2022
2021
REVENUES
Taxes
$ 29,892,435
$ 27,913,222
Permits and fees
2,204,543
1,593,382
Service fees
2,134,517
1,628,589
Fines and fees
657,480
637,638
Intergovernmental
1,730,576
1,623,282
Investment earnings
90,883
29,147
Miscellaneous
613,268
781,333
Total Revenues
37,323,702
_ 34,206,593
EXPENDITURES
Current:
General government
6,051,339
6,008,482
Public safety
18,243,849
17,166,400
Public environment
1,766,558
1,382,185
Parks and recreation
2,567,764
2,494,684
Cultural
1,144,684
1,040,276
Administration
3,991,262
3,858,317
Capital outlay
646,563
566,078
Total Expenditures
34,412,019
32,516,422
Excess (Deficiency) of Revenues Over Expenditures
2,911,683
1,690,171
OTHER FINANCING SOURCES (USES)
Proceeds from
-
136,535
37,853
-
Transfers in
{ 2,361,204}
2,317,117)
Total Other Financing Sources (Uses)
{ 2,323,351)
( 2,180,582)
NET CHANGE IN FUND BALANCE
588,332
( 490,411)
FUND BALANCES - BEGINNING
16,478,567
_16,968,978
FUND BALANCES - ENDING
$ 17,066,899
$ 16,478,567
66
CITY OF SCHERTZ, TEXAS
COMPARATIVE BALANCE SHEETS
ECONOMIC DEVELOPMENT CORPORATION
SEPTEMBER 30, 2022
(WITH COMPARATIVE TOTALS FOR 2021)
ASSETS
Cash and cash equivalents
Investments
Receivables, net of allowances;
Taxes
Accounts and other
Prepaid items
Total Assets
LIABILITIES
Accounts payable
Total Liabilities
FUND BALANCES
Restricted for:
Economic development
Total Fund Balances
Total Liabilities and Fund Balances
2022
$ 22,721,336
2,227,105
1,101,960
7,949
16,212
16,212
26, 043,128
26,043,128
$ 26,059,340
2021
$ 18,542,752
2,206,135
1,054,214
7,949
5,809
5,809
21, 806, 231
21,806,231
$_ 21,812,040
67
CITY OF SCHERTZ, TEXAS
COMPARATIVE SCHEDULES OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
ECONOMIC DEVELOPMENT CORPORATION
FOR THE YEAR ENDED SEPTEMBER 30, 2022
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED 2021)
REVENUES
Taxes
Investment earnings
Total Revenues
EXPENDITURES
Current:
General government
Administration
Total Expenditures
Excess (Deficiency) of Revenues Over (Under) Expenditures
OTHER FINANCING SOURCES (USES)
Transfers out
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCE
FUND BALANCES - BEGINNING
FUND BALANCES - ENDING
2022
$ 6,025,703
201,279
6,226,982
218,302
531,783
750,085
5,476,897
( 1,240,000)
( 1,240,000)
4,236,897
21 806, 231
$ 26,043,1.28_
2021
$ 5,615,928
56,144
5,672,072
306,025
_ 528,442
834,467
4,837,605
( 4,050,000)
{ 4,050,000)
787,605
21,018,626
$ 21806,231
68
CITY OF SCHERTZ, TEXAS
COMPARATIVE BALANCE SHEETS
DEBT SERVICE FUND
SEPTEMBER 30, 2022
(WITH COMPARATIVE TOTALS FOR 2021)
ASSETS
Cash and cash equivalents
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
2022 2021
$ 1,864,408 $ 1,087,376
172,341 133,778
2,036,749 1, 221,154
172,340 133,778
172,340 133,778
1,864,409 1.087, 376
1,864,409 1,087,376
$ 2,036,749 $ 1,221,154
69
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
DEBT SERVICE FUND
BUDGET AND ACTUAL
REVENUES
Property taxes
Investment income
Miscellaneous
Total Revenue
EXPENDITURES
Debt service:
Principal
Interest and fiscal charges
Bond issue costs
Total Expenditures
FOR THE YEAR ENDED SEPTEMBER 30, 2022
(WITH COMPARATIVE ACTUAL TOTALS FOR 2021)
Variance With
2022
Final Budget
2021
Original
Final
Actual
Positive
Actual
Budget
Budget
Amounts
(Negative)
Amounts
$ 7,329,862
$ 7,329,862
$ 7,182,900
$( 146,962) $
7,102,016
5,000
5,000
143,428
138,428
1,593
100,000
100,000
75,000
( 25,000)
125,000
7,434,862
7,434,862
7,401,328
{ 33,534)
7,228,609
4,920,000
4,920,000
4,805,000
115,000
4,955,000
1,706,915
1,706,915
1,779,157
( 72,242)
1,801,467
50,000
50,000
90,626
( 40,626)
140,140
6,676,915
6,676,915
6,674,783
2,132
6,896,607
Excess(Deficiency)of Revenues over Expenditures 757,947 757,947 726,545 ( 35,666) 332,002
OTHER FINANCING SOURCES (USES)
Issuance of debt
- - -
-
7,555,000
Issuance of refunding debt
- - 4,070,000
4,070,000
-
Premium on issuance of debt
- - 421,632
421,632
-
Payment to refunding escrow agent
- - ( 4,443,881)
( 4,443,881)
629,992
Transfers in
- - 2,737
2,737
( 8,223,452)
Transfers out
- - -
-
7,915
Total Other Financing Sources (Uses)
_ _ - 50,488
50,488
( 30,545)
NET CHANGE IN FUND BALANCE
757,947 757,947 777,033
19,086
301,457
FUND BALANCE - BEGINNING
1,087,376 1,087,376 1,087,376
_
785,919
FUND BALANCE - ENDING
$ 1,845,323 $ 1,845,323 $ 1,864,409
$ 19,.086
$ 1,087,376
70
CITY OF SCHERTZ, TEXAS
COMPARATIVE BALANCE SHEETS
CAPITAL PROJECTS FUND
SEPTEMBER 30, 2022
(WITH COMPARATIVE TOTALS FOR 2021)
2022 2021
ASSETS
Cash and cash equivalents $ 42,594,424 $ 13,229,954
Accounts receivable, net of allowance - 258,142
Total Assets 42.594,424 13,488,096
LIABILITIES
Accounts payable 906,624 162,695
Retainage payable 281,284 154,437
Total Liabilities 1,187,908 317,132
FUND BALANCES
Restricted for:
Capital improvement 35,863,370 5,185,166
Committed for:
Capital projects 5,543,146 7,985,798
Total Fund Balances 41,406,516 13.170.964
Total Liabilities and Fund Balance $ 42,594,424 $ 13,488,096
71
CITY OF SCHERTZ, TEXAS
COMPARATIVE SCHEDULES OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
CAPITAL PROJECTS FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2022
(WITH COMPARTIVE TOTALS FOR THE YEAR ENDED 2021)
REVENUES
Intergovernmental
Investment earnings
Miscellaneous
Total Revenues
EXPENDITURES
Capital outlay
Debt service;
Bond issue costs
Total Expenditures
Excess (Deficiency) of Revenues Over Expenditures
OTHER FINANCING SOURCES (USES)
Issuance of debt
Premium on issuance of debt
Transfers in
Transfers out
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCE
FUND BALANCES - BEGINNING
FUND BALANCES - ENDING
2022
196,624
450,000
646,624
9,544,074
468,285
10,012,359
( 9,365,735)
31,540,000
2,778,912
3,285,112
[ 2,737)
37,601,287
28,235,552
13,170, 964
$ 41,406,516
2021
$ 724,993
12,333
501,922
1,239,248
4,582,289
4,582,289
( 3,343,041)
6,384,362
( 7,915)
6,376,447
3,033,406
10,137,558
$ 13,170,964
72
CITY OF SCHERTZ, TEXAS
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2022
Special Revenue Funds
Hotel
Occupancy
Park
Tree
Treasury
Fund
Fund
Mitigation
Forfeitures
ASSETS
Cash and cash equivalents
$ 1,631,582 $
264,072
$ 722,434
$ 83,400
Accounts receivable, net of allowance
77,949
-
-
-
Total Assets
1,709,531
264,072
722,434
83.,400
LIABILITIES
Accounts payable
6,726
2,551
14,374
77,996
Retainage payable
56,187
-
-
-
Due to other funds
-
-
-
-
Total Liabilities
62,913
2,551
14,374
77,996
FUND BALANCES
Restricted for:
Tourism development 1,646,618 - - -
Parks and tree mitigation - 261,521 708,060 -
Police forfeiture - - - 5,404
Roadways - - - -
Historical Committee and library - - - -
Unassigned - - - -
Total Fund Balances 1,646,618 2614521 708,060 5,404
Total Liabilities and Fund Balances $ 1,709,531 $ 264,072 $ 722,434 $ 83,400
73
Capital
Special Revenue Funds
Projects Fund
Library
Historical
Capital
Total Nonmajor
Justice
State Grant
Advisory
Committee
Recovery
Governmental
Forfeitures
Forfeitures Fund
Board
Fund
Roadways
Funds
$ 134,573
$ 4,779 $ - $
69,839
$ 26,988
$ 2,559,354
$ 5,497,021
-
- -
-
-
-
77,949
1341573
4,779 -
69,839
26,988
2,559,354
5,574,970
270 - - 101,917
- - - - 56,187
648,630 - - - 648,630
- - 648,630 270 - - 806,734
- - 1,646,618
- - - - - - 969,581
134,573 4,779 - - - - 144,756
- - - - - 2,559,354 2,559,354
- - - 69,569 26,988 - 96,557
- - ( 648,630] - - - [ 648,630)
134,573 4,779 S 648,630] 69,569 26,988 2,559,354 4,768,236
$ 134,573 $ _41779 $ - $ 69,839 $ 26,988 $ 2,559,354 $ 5,574,970
74
CITY OF SCHERTZ, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
REVENUES
Occupancy tax
Permits and fees
Service fees
Fines and fees
Intergovernmental
Investment earnings
Miscellaneous
Total Revenues
EXPENDITURES
Current:
General government
Public safety
Parks and recreation
Cultural
Administration
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenue
Over Expenditures
OTHER FINANCING SOURCES (USES)
Transfer in
Transfer out
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING
FUND BALANCES - ENDING
Special Revenue Funds
Hotel
Occupancy
Park
Tree
Treasury
Fund
Fund
Mitigation
Forfeiture
$ 804,132 $
-
$ -
$ -
-
-
136,950
-
-
-
-
50,840
14,583
2,194
5,324
-
818.715
2,194
142,274
_ 50,840
242,875 - - -
10,040 82,110 -
74,443 - - -
1.156.495 17,650 - 77,996
1,473,813 27,690 82,110 77,996
{ 655,098} ( 25,496] 60,164 ( 27,156}
{ 655,098} ( 25,496} 60,164 L 27,156}
2,301,716 287,017 647,896 32,560
$ 1,646,618 $ 261,521 $ 708,060 $__ 5;404
75
SV:ecial Revenue Funds
Library
Justice State Grant Advisory
Forfeitures Forfeitures Fund Board
46,238 -
784 -
Historical
Committee
Fund
18,292 1,943
94,509 - -
- 546 -
Capital
Proiects Fund
Capital
Recovery
Roadways
Total Nonmajor
Governmental
Funds
$ -
$ 804,132
-
136,950
798,955
819,190
-
97,078
-
94,509
19,878
43,309
47,022 - 94,509 19345 1,943 818,833 1,995,675
- - 3,116 - 245,991
- - 16,256 - - - 16,256
- - - - - - 92,150
- - 14,340 - - 14,340
- - - - - - 74,443
9,273 - - - - 60,512 1,321,933
9,273 - 16,256_ 14,340 3,116 60,519 1,765,113
37,749 - 78,253 5,005 i 1,173] 758,314 230,562
- - - - 13,863 - 13,863
{ 51,840). - - - S 51,840)
- - { 51,840) - 13,863 - i 37,977}
37,749 - 26,413 5,005 12,690 758,314 192,585
96,824 4,779 675,043} 64,564 _ 14,298 1,801,040 4 575,651
$. 134,573 $4,779 $(. 648,630) $. 69 569 $ _._26r988 $ 2,559,354 $ _ 4,768,236
76
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
HOTEL OCCUPANCY FUND
REVENUES
Occupancy tax
Investment earnings
Total Revenues
EXPENDITURES
Current:
General government
Administration
Capital outlay
Total Expenditures
FOR THE YEAR ENDED SEPTEMBER 30, 2022
(WITH COMPARATIVE ACTUAL TOTALS FOR 2021)
Variance With
2022 Final Budget 2021
Original Final Actual Positive Actual
Budget Budget Amounts (Negative) Amounts
$ 520,000 $ 520,000 $ 804,132 $ 284,132 $ 518,921
5.250 5,250 14,583 9,333 2,095
525.250 525,250 818,715 293,465 521,016
196,966 335,354 242,875 92,479
74,443 74,443 74,443 -
20, 000 1,170,000 1,156,495 13,505
291,409 1,579,797 1,473, 813 105,984
263,300
72,464
33J, /b4
NET CHANGE IN FUND BALANCE
233,841
( 1,054,547]
( 655,098]
399,449 185,252
FUND BALANCE - BEGINNING
2,301,716
2,301,716
2,301,716
- 2,116,464
FUND BALANCE - ENDING $
2,535,557
$ 1,247,169
$ 1,646,618 $
399,449 $. 2,301,716
77
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
PARK FUND
REVENUES
Licenses and permits
Investment earnings
Total Revenues
EXPENDITURES
Current:
Parks and recreation
Capital outlay
Total Expenditures
it Z11 i4l: F12lei * 1210101111=7_1 A_10[a] =
FUND BALANCE - BEGINNING
FUND BALANCE - ENDING
FOR THE YEAR ENDED SEPTEMBER 30, 2022
(WITH COMPARATIVE ACTUAL TOTALS FOR 2021)
Variance With
2022 Final Budget 2021
Original Final Actual Positive Actual
Budget Budget Amounts (Negative) Amounts
$ 318,000 $ 318,000 $ - $( 318,000) $ -
1,025 1,025 2,194 1,169 293
319,025 319,025 2,194 ( 316,831} 293
25,000 25,000 10,040 14,960 4,500
100,000 _ 100,000 17,650 82,350 1,012
125,000 125,000 27,690 97,310 5,512
194,025 194,025 ( 25,496} ( 414,141) ( 5,219.}
287,017 287,017 287,017 - 292,236
$ 481,042 $ 481,042 $ 261,521 $( 219,521) $ 287,017
78
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
TREE MITITGATION FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2022
(WITH COMPARATIVE ACTUAL TOTALS FOR 2021)
Variance With
2022
Final Budget
2021
Original
Final
Actual
Positive
Actual
Budget
Budget
Amounts
(Negative)
Amounts
REVENUES
Licenses and permits
$ 70,000 $
70,000 $
136,950
$ 66,950 $
219,513
Investment earnings
1,400
1.400
5,324
3,924
650
Total Revenues
71,400
71.400
142,274
70,874
220,163
EXPENDITURES
Current:
Parks and recreation
70,000
70,000
82,110
( 12,110]
35,495
Total Expenditures
70,000
70,000
82,110
( 12,110)
35,495
NET CHANGE IN FUND BALANCE
1,400
1,400
60,164
58,764
184,668
FUND BALANCE - BEGINNING
647,896
647,896
647,896
-
463,228
FUND BALANCE - ENDING
$ 649,296 $
649,296 $
708,060
$ 58,764 $
647,896
79
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
TREASURY FORFEITURES FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2022
(WITH COMPARATIVE TOTALS FOR 2021)
REVENUES
Fines and fees
Total Revenues
EXPENDITURES
Capital outlay
Total Expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING
FUND BALANCE - ENDING
2022 2021
$ 50,840 $ -
50,840 -
77,996_ _ 77,996 -
[ 27,156
32, 560
32,560
$ 5,404 $ 32.560
80
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
JUSTICE FORFEITURES FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2022
(WITH COMPARATIVE TOTALS FOR 2021)
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
2022 2021
$ 46,238 $ 5,844
9.273
9,273
37,749
96,824
$ 134,573
94,899
24,750
119,649
113,629)
210,453
$ 96,824
81
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
STATE FORFEITURES FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2022
(WITH COMPARATIVE TOTALS FOR 2021)
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
2022 2021
7,995
7,995
7,995)
4,779 12,774
$ 4,779 $ 4,779
82
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, 2022
(WITH COMPARATIVE ACTUAL TOTALS FOR 2021)
REVENUES
Service fees
Investment earnings
Miscellaneous
Total Revenues
EXPENDITURES
Current:
Cultural
Total Expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING
FUND BALANCE - ENDING
Original Final
Bud -,-et Budget
$ 16,000 $ 16,000
200 200
1 O.tUV
$
Variance With
2022
Final Budget
2021
Actual
Positive
Actual
Amounts
Ne-ativer
Amounts
18,292
$ 2,292
$ 9,104
546
346
111
507
507
13
19,345
3■145
9■228
22,200 22,200 14,340 7,860 19,708
22,200 22,200 14,340 7,860 19,708
{ 6,000.} { 6,000} 5,005 11,005 I 10,480]
64,564 64,564 64,564 - 75,044
$ 58,564 $ 58,564 $!_ 69,569 $ 11,005 $ 64,564
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, 2022
(WITH COMPARATIVE ACTUAL TOTALS FOR 2021)
REVENUES
Sale of merchandise
Miscellaneous
Total Revenues
EXPENDITURES
Current:
General government
Total Expenditures
Excess of Revenues Over Expenditures
Variance With
2022 Final Budget
Original Final Actual Positive
Budget Budget Amounts (Negative)
$ 1,000 $ 1,000 $ 1,943 $ 943 $
l,uuu 1,uuu l,JYJ
2021
Actual
Amounts
590
2
592
11,750 11,750 3,116 8,634 3,108
11,750 11,750 3,116 8,634 3,108
1 10,750) ( 10,750) 1,173) 9,577 2,516)
OTHER FINANCING SOURCES (USES)
Transfers in 10250 10,750 13,863 3,113 3,109
Total Other Financing Sources (Uses) 10,750 10,750 _ 13,863 3,113 3,109
NET CHANGE IN FUND BALANCE - - 12,690 12,690 593
FUND BALANCE - BEGINNING 14,298 14,298 14,298 - 13,705
FUND BALANCE - ENDING $ 14,298 $ 14,298 $ 26,988 $ 12,690 $ 14,298
84
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
CAPITAL RECOVERY ROADWAYS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
(WITH COMPARATIVE TOTALS FOR 2021)
REVENUES
Service fees
Investment earnings
Total Revenues
EXPENDITURES
Capital outlay
Total Expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING
FUND BALANCE - ENDING
2022 2021
$ 798,955 $ 902,712
19,878 1,828
818,833 _ 904,540
60,519 41,127
60,519 41,127
758,314 863,413
1,801,040 937,627
$ 2,559,354 $1,801,040
85
STATISTICAL SECTION
STATISTICAL SECTION
(unaudited)
This part of the City of Schertz, Texas Annual Comprehensive Financial Report presents detailed information
as a context for understanding what the information in the financial statements, note disclosures, and
required supplementary information says about the City's overall financial health.
Contents
Page
Financial Trends
These schedules contain trend information to help the reader
understand how the City's financial performance and well-being have
changed over time. 86 - 95
Revenue Capacity
These schedules contain information to help the reader assess the
City's most significant local revenue sources. 96 - 104
Debt Capacity
These schedules present information to help the reader assess the
affordability of the City's current levels of outstanding debt and the
City's ability to issue additional debt in the future. 105 - 110
Demographic and Economic Information
These schedules offer demographic and economic indicators to help
the reader understand the environment within which the City's
financial activities take place. 111 - 114
Operating Information
These schedules contain service and infrastructure data to help the
reader understand how the information in the City's financial report
relates to the services the City provides and the activities it performs. 115 - 120
CITY OF SCHERTZ, TEXAS
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(UNAUDITED)
Fiscal Year
2013 2014 2015 2016
Governmental activities
Net investment in capital assets
$
57,543,618
$
62,792,671
$
68,125,738
$
74,237,004
Restricted
7,788,354
10,401,728
13,343,280
17,095,325
Unrestricted
6,645,418
8,613,239
1,640,519
2,231,341
Total Governmental Activities Net
Position
$
71,977,390
$
81,807,638
$
83,109,537
$
93,563,670
Business -type activities
Net investment in capital assets
$
53,071,836
$
53,674,437
$
59,625,205
$
64,210,231
Restricted
-
-
-
-
Unrestricted
11,902,282
16,450,988
14,243,922
15,737,470
Total Business -Type Activities Net
Position
$
64,974,118
$
70,125,425
$
73,869,127
$
791947,701
Primary government
Net investment in capital assets
$
110,615,454
$
116,467,108
$
127,750,943
$
138,447,235
Restricted
7,788,354
10,401,728
13,343,280
17,095,325
Unrestricted
18.,547,700
25,064,227
15,884,441
17,968,811
Total Primary Government Net
Position
$
136,951,508
$
151,933,063
$
156,9784664
$
173,511,371
86
TABLE 1
Fiscal Year
2017
2018
2019
2020
2021
2022
$ 84,537,238 $
89,266,885 $
89,869,766 $
88,959,102 $
98,444,714 $
109,746,340
20,437,116
23,391,047
28,088,355
28,664,438
28,342,438
32,745,688
1,673,567
2,351,236
2,920,717
4,157,801
10,744,127
11,055,015
$ 106, 647, 921 $ 115, 009,168 $ 120, 78.838 $ 121. 781, 341 $ 137, 531z279 $ 153, 547,043
$ 70,361,035 $ 64,871,629 $ 68,271,075 $ 75,969,319 $ 83,941,882 $ 94,997,863
10,565,463 12,626,526 13,232,638 15,071,599 5,408,320 5,408,320
20,781,291 20-870.671 33,254,008 30.570,717 39,406,798 42,791,680
$ 101,707,789 $ 98,368,826 $ 114,757 721 $ 121,611,635 $ 128,757,000 $ 143,197,863
$ 154,898,273 $ 154,138,514 $ 158,140,841 $ 164,928,421 $ 182,386,596 $
20,437,116 23,391,047 41,320,993 43,736,037 33,750,758
22,454,858 35,848,433 36,174,725 34,728,518 50,150,925
$ 197,790,247 $ 213,377,994 $ 235,636,559 $ 243,392,976 $ 266,288,279 $
204, 744, 203
38,154,008
53,846,695
296.744, 906
87
CITY OF SCHERTZ, TEXAS
CHANGE IN NET POSITION
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(UNAUDITED)
Fiscal Year
2013 2014 2015 2016
Expenses
Governmental activities:
General government
$ 7,066,087
Public safety
9,567,595
Public environment
3,622,834
Parks and recreation
1,807,559
Cultural
907,676
Health
344,647
Administration
1,180,656
Interest and other fees
3.340,951
Total Governmental Activities Expenses 27,838,005
$ 6,958,530 $ 6,443,227 $ 6,557,778
10, 025, 703 10, 836, 712 12,141, 968
3,740,538 3,876,644 4,147,653
1,807,136 2,164,604 2,034,964
870,159 892,194 954,871
407,114 470,468 570,204
1,942,312 1,845,877 1,954,276
2,352,856 2,226,635 2,240,783
28,104,348 28,756,361 30,602,497
Business -type activities:
Water and sewer 16,954,871 17,762,116 18,440,959 20,269,111
EMS 3,959,445 4,268,125 4,719,526 5,004,110
Total Business -Type Activities Expenses 20,914,316 22,030,241 23,160,485 25,273,221
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
48,752,321 50,134,589 51,916,846 55,875,718
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
1,840,547 1,507,252
2,603,476 2,415,537
794,003 788,727
325,178 326,079
26,744 30,308
336,252 342,485
5,509,530 6,227,664
7,578,474 11, 747,798 11,4351730 11,638,052
17,696,327 19,147,872 20,700,369 22,003,794
4,459,600 4,533,753 4,415,126 5,921,223
1,301,235 2,809,110 4,158,552 2,831,126
23,457,162 26,490,735 29,274,047 30,756,143
31,035.636 38,238,533 401709,777 42,394,195
Net (expense) revenue:
Governmental activities ( 20,259,531) ( 16,356,550) ( 17,320,631) ( 18,964,445)
Business -type activities _ 2,542,846 4,460,494 6,113,562 5,482,922
Total Primary Government Net Expense ( 17,716.,685} ( 11,896,056) ( 11,207,069) ( 13,481,523)
88
Business -type activities:
Water and sewer 16,954,871 17,762,116 18,440,959 20,269,111
EMS 3,959,445 4,268,125 4,719,526 5,004,110
Total Business -Type Activities Expenses 20,914,316 22,030,241 23,160,485 25,273,221
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
48,752,321 50,134,589 51,916,846 55,875,718
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
1,840,547 1,507,252
2,603,476 2,415,537
794,003 788,727
325,178 326,079
26,744 30,308
336,252 342,485
5,509,530 6,227,664
7,578,474 11, 747,798 11,4351730 11,638,052
17,696,327 19,147,872 20,700,369 22,003,794
4,459,600 4,533,753 4,415,126 5,921,223
1,301,235 2,809,110 4,158,552 2,831,126
23,457,162 26,490,735 29,274,047 30,756,143
31,035.636 38,238,533 401709,777 42,394,195
Net (expense) revenue:
Governmental activities ( 20,259,531) ( 16,356,550) ( 17,320,631) ( 18,964,445)
Business -type activities _ 2,542,846 4,460,494 6,113,562 5,482,922
Total Primary Government Net Expense ( 17,716.,685} ( 11,896,056) ( 11,207,069) ( 13,481,523)
88
Net (expense) revenue:
Governmental activities ( 20,259,531) ( 16,356,550) ( 17,320,631) ( 18,964,445)
Business -type activities _ 2,542,846 4,460,494 6,113,562 5,482,922
Total Primary Government Net Expense ( 17,716.,685} ( 11,896,056) ( 11,207,069) ( 13,481,523)
88
TABLE 2
Fiscal Year
2017 2018 2019 2020 2021 2022
$ 6,253,926 $
7,421,918 $
6,534,013 $
10,310,363 $
7,298,193 $
7,093,652
13,061,120
13,899,278
15,448,886
16,575,191
19,008,871
19, 580, 703
4,460,540
4,930,723
5,495,192
8,825,099
5,364,408
8,545,834
2,859,974
2,707,292
3,022,278
3,012,134
3,395,458
3,543,978
1,004,747
1,042,085
1,119,650
1,089, 564
1,087,975
1,168,815
776,494
724,780
516,890
596,288
-
-
3,052,102
3,067,983
3,853,255
3,419,407
4,360,229
4,455,947
2,355,714
2,125,687
2,196,180
2,028,065
1,797,520
2,490,474
33,824,617
35,919,746
38,186,344
45,856,111
42,312,654
46,879,403
21,346,078
23,579,854
25,608,390
24,349,219
25,280,964
27,833,986
6,006,178
6,110,407
6,529,631
6,051,296
7,784,670
8,234,500
27,352,256
29,690,261
32,138,021
30,400,515
33.065,634
36,068,486
61,176,873
65,610,007
70,324,365
76,256,626
75,378,288
82,947,889
874,737
1,013,698
947,538
836,246
651,211
686,470
4,131,548
4,104,911
3,177,329
3,276,129
3,079,945
3,922,957
-
-
138,920
850,201
902,712
798,955
544,460
640,231
484,495
331,174
528,886
652,727
330,412
313,668
311,575
299,944
285,792
310,859
29,742
27,930
21,101
26,304
-
-
552,878
776,942
692,042
2,113,673
1,925,939
3,970,029
10.043,483
4,744,489
1,319,793
531.096
7,959,576
6,987,788
16,507,260
11,621,869
7,092,793
8,264,767
15,334,061
17,329,785
25,390,713
27,099,237
27,333,475
29,709,279
27,724,929
30,677,566
6,366,894
6,092,559
6,596,618
6,114,891
7,709,027
9,420,909
69111.,474
3,132,348
1975,524
292,408
6,935,191
6,143,957
37,869,081
36,324,144
35.905,617
36,116,578
42,369,147
46,242,432
54,376,341
47,946,013
42,998,410
44,381,345
57,703,208
63,572,217
( 17,317,357) (
24,297,877)
( 31,093,551) (
37,591,344)
( 26,978,593)
( 29,549,618)
10,516,825
6,633,883
3,767,596
5,716,063
9,303,513
10,173,946
6,800,532} {
17,663,994}
S 27,325,955) (
31,875,281)
( 17,675,080)
( 19,375,672)
89
CITY OF SCHERTZ, TEXAS
General Revenues and
Other Changes in Net Position
Governmental activities:
Taxes
Ad valorem
Sales
Franchise fees
Hotel/motel
Mixed drink
Investment income
Miscellaneous
Transfers
Total Governmental Activities
Business -type activities:
Interest and investment earnings
Miscellaneous
Transfers
Total Business -Type Activities
Total Primary Government
Change in Net Position
Governmental activities
Business -type activities
Total Primary Government
Source: City financial statements
CHANGE IN NET POSITION
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(UNAUDITED)
Fiscal Year
2013 2014 2015 2016
$ 12,359,146
9,637,097
1,681,079
503,267
30,421
54,270
505,268
25,140
24,795,688
$ 12,794,172 $
14,139,037
10,553,382
10,315,125
2,073,162
2,263,783
552,570
563,734
39,917
43,656
43,279
56,820
180,316
197,881
[ 50,000) [ 42,235}
26,186,798 27,537,801
53,089 31,810
664,521 609,003
( 25,140) 50,000
692e470 690,813
$ 15,131,997
10,921,489
2,250,815
544,871
43,073
187,847
309,275
29.211
29, 418, 578
47,728 102,642
344,731 522,221
T 42,235 [ 29,211,
434,694 595,652
25,488,158
26,877,611
27,972,495
30,014,230
4,536,157
9,830,248
10,217,170
10,454,133
3,235,316
5,151,307
6,548,256
_ 6,078,574
$ 7,771,473 $
14,981,555 $
16,765,426
$ 16,532,707
90
TABLE 2
Fiscal Year
2017 2018 2019 2020 2021 2022
$ 16,166,006 $
17,018,950
$ 19,151,005 $
19,844,912 $
21,463,804
$ 22,495,628
10,844, 503
12,668,555
12,506,879
14,432,152
16,838,731
18,075,733
2,208,373
2,393,182
2,357,150
2,305,225
2,305,108
2,574,041
499,466
520,424
514,679
268,946
518,921
804,132
42,699
43,395
60,518
70,139
68,730
83,391
448,408
909,985
1,470,258
804,674
104,613
709,898
182,754
283,496
984,257
767,779
1,408,270
1,138,775
9,399
19,186
81,525]
-
-
( 316,216)
30,401,608
33 857 173
36,963,221
38,493,827
42,708,177
45,565,382
211,466
532,367
855,216
431,555
68,354
314,546
475,733
453,374
267,788
706,296
754,268
675,739
( 9,399] [
_ 19,16)
81,525
-
-
316,216
_ 677,800
966,555
1,204,529
1,137,851
822,622
_ 1,306,501
31,079,408
34,823,728
38,167,750
39,631,678
43,530,799
46,871,883
13,084,251
9,559,296
5,869,670
902,503
15,729,584
16,015,764
11,194,625
7,600,438
4,972,125
6,853,914
10,126,135
11,480,447
$ 24,278,876 $
17,159,734
$ 10,841,795 $.
7,756,417 $
25,855,719
$. 27,496,211
91
CITY OF SCHERTZ, TEXAS
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(UNAUDITED)
Fiscal Year
2013
2014
2015
2016
General fund
Non -spendable
$ 925,291 $
110,253 $
117,084
$ 220,503
Restricted
1,599,487
1,701,408
1,748,374
1,929,636
Committed
-
-
-
-
Assigned
456,034
694,916
785,005
752,503
Unassigned
4,206,734
5,587,262
7,280,240
8,509,467
Total general fund
$^ 7,187,546 $
8,093,839 $
9,930,703
$ 11,412,109
All other governmental funds
Restricted $ 22,742,237 $ 19,261,995 $ 21,191,968 $ 27,252,908
Committed 165,000 31,718 - 342,519
Assigned 244,937 31,177 6,657 6,743
Unassigned - - - -
Total all other governmental funds $_ 23,152,174_ $ 19,324,890 $ 21,198,625 $ 27,602,170
Source: Balance Sheets - Governmental Funds in City's ACFRs.
92
TABLE 3
Fiscal Year
2017 2018 2019 2020 2021 2022
$ 98,263 $ 94,876 $ 131,925 $ 114,787 $ 162,463 $ 182,186
1,994,905 2,027,125 2,196,037 1,996,357 2,151,411 2,260,350
- - - 687,780 907,676 1,021,594
854,198 3,080,557 5,580,626 1,972,479 1,501,398 1,356,230
9,976,169 12,548,013 9,228,612 12,197,575 11,755,619 12,246,539
$ 12,923,535 $_ 17,750,571 $ 17,137,200 $ 16,968,978 $ 16,478,567 $ 17,066,899
$ 35,721,031 $ 37,772,240 $ 39,009,399 $ 32,024,252 $ 33,329,710 $ 69,222,391
454,376 454,376 687,779 4,071,942 7,985,798 5,543,146
- - - [ 2,071,518) ( 675,043) 648,630
$ 36,175,407 $ 38,226,616 $ 39,697,178 $ 34,024,676 $ 40,640,465 $ __ 74,116,907
93
CITY OF SCHERTZ, TEXAS
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(UNAUDITED)
Revenues
Taxes
Permits and fees
Service fees
Fines and fees
Intergovernmental
Other revenue
Total Revenues
Expenditures
Current:
General government
Public safety
Public environment
Parks and recreation
Cultural
Health
Administration
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Bond issue costs
Payment to refund agent
Total Expenditures
Excess of Revenues Over (Under)
Expenditures
Other Financing Sources (Uses)
Bond & debt issuances
Refunding bond issuance
Premium (discount) on bond issue
Payment to refund agent
Transfer in
Transfer out
Net Other Financing Sources (Uses)
Net Change in Fund Balances
Debt Service as a Percentage of
Noncapital Expenditures
Fiscal Year
2013 2014 2015 2016
$ 24,181,863 $ 26,021,730 $ 27,348,297 $ 28,865,727
1,609,954
1,805,047
1,731,302
1,493,336
1,739,387
1,763,964
1,797,151
1,789,321
1,927,744
1,750,311
1,534,588
1,441,474
492,332
221,769
393,607
401,494
767,110
671,731
689,805
1,741,436
30,718,390
32,234,552
33,494,750
35,732,788
6,311,276
5,981,439
5,582,441
5,657,998
9,113,840
9,409,894
10,158,401
11,048,767
951,528
1,012,607
952,663
1,007,326
1,412,329
1,338,232
1,658,197
1,528,356
840,595
815,691
821,146
869,162
341,961
394,918
404,008
480,175
1,289,078
2,270,041
2,056,646
2,015,573
3,277,397
8,000,467
2,314,668
10,192,398
3,217,325
3,695,597
3,918,008
4,040,975
2,381,171
2,108,610
2,112,746
1,896,911
31,750
165,650
7,992
449,358
29,168,250
35,193,146
29, 986, 916
39,186,999
1,550,140 ( 2,958,594)
1,635,000
788,084
( 788,084)
1,635,000
$ 3,185,140
21.6%
8,583,715
686,137
( 9,182,250)
1,243,833
( 1,293,832)
37,603
$( 2,920,991)
21.3%
3,507,834 ( 3,454,211)
245,000
989,120
1,031,355)
202,765
$ 3,710,599
21.3%
10,750,000
4,185,000
590,432
( 4,215,482)
863,583
834,371)
11,339,162
$ 7,884,951
20.5%
Source: Statement of Revenues, Expenditures, and Changes in Fund Balance for Governmental Funds.
94
TABLE 4
Fiscal Year
2017
2018
2019
2020
2021
2022
$ 29,720,578
$ 32,632,702
$ 34,590,008 $
36,802,913 $
41,150,087 $
43,905,170
2,540,045
2,557,056
1,635,461
1,807,264
1,812,895
2,341,493
2,132,299
2,159,193
2,070,293
2,583,598
2,540,995
2,953,707
1,217,621
1,049,989
953,614
880,657
643,482
754,558
397,073
609,131
1,057,681
951,604
4,582,874
4,247,523
1,897,153
1,761,285
2,454,515
1,572,473
1,512,883
1,848,673
37,904,769
40,769,356
42,7619572
44,598,509
52,243,216
56,051,124
5,394,918
6,327,133
5,881,647
10,364,369
6,580,915
6,515,632
11,870,636
12,728,222
13,985,443
15,366, 593
18,107,418
19,098,373
1,128,979
1,136,052
1,112,041
1,270,894
1,382,185
1,766,558
1,885,915
1,697,872
2,393,487
2,102,083
2,534,679
2,659,914
921,870
955,153
1,018,109
1,044,891
1,059,984
1,159,024
672,934
628,054
498,871
589,616
-
-
2,912,855
3,015,239
3,795,233
3,353,634
4,459,223
4,597,488
5,492,196
7,708,625
9,083,572
9,276,886
5,215,256
13,096,740
4,473,174
4,744,116
4,565,000
4,929,544
4,955,000
4,805,000
2,113,679
2,099,190
2,069,215
2,136,523
1,801,467
1,779,157
214,280
129,417
189,082
4,200
140,140
558,911
-
-
5,489,912
-
-
-
37,081,436
41,169,073
50,081,612
50,439,233
46,236,267
56 036,797
823,333
( 399,717)
( 7,320,040)
( 5,840,724)
6,006,949
14,327
8,870,000
4,887,829
4,620,000
-
136,535
31,540,000
-
6,035,000
5,225,000
-
7,555,000
4,070,000
381,931
269,212
640,115
-
629,992
3,200,544
-
( 6,159,623)
-
-
( 8,223,452)
( 4,443,881)
438,803
777,487
120,503
4,500,169
6,395,386
3,339,565
( 429,404)
[ 758,302)
202,028)
{ 4,500,169}
[ 6,375,032)
( 3,655,781)
9,261,330
5,051,603
10,403 590
-
118,429
34,050,447
$ 10,084,663
$ 4,651,886
$_ 3,083,550
$( 5,840,724)
$ 6,125,378
$ 34.,064,774
20.4%
22.2%
17.3%
16.2%
19.9%
17.1%
95
CITY OF SCHERTZ, TEXAS
Fiscal
Year
GOVERNMENTAL FUNDS TAX REVENUES BY SOURCE
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(UNAUDITED)
Property Sales & Use Franchise
Tax Tax Tax
Mixed
Beverage
2013
$ 12,329,999
$ 9,637,097
$ 1,681,079
$ 30,421
2014
12,802,668
10,553,382
2,073,162
39,917
2015
14,161,999
10,315,125
2,263,783
43,553
2016
15,105,480
10,921,489
2,250,815
43,072
2017
16,125,537
10,844,503
2,208,373
42,668
2018
17,007,148
12,668,555
2,393,182
43,384
2019
19,150,782
12,506,879
2,357,150
60,518
2020
19,726,451
14,432,152
2,305,225
70,139
2021
21,418,597
16,838,731
2,305,108
68,730
2022
22,367,873
18,075,733
2,574,041
83,391
96
TABLE 5
Hotel
BinQo Occupancy
Total
$ -
$ 503,267
$ 24,181,863
31
552,570
26,021,730
103
563,734
27,348,297
1
544,870
28,865,727
31
499,466
29,720,578
11
520,424
32,632,704
24
514,679
34,590,032
24
268,946
36,802,937
24
518,921
41,150,111
24
804,132
43,905,194
97
CITY OF SCHERTZ, TEXAS
TABLE 6
TOTAL WATER AND SEWER CONSUMPTION AND RATES
LAST TEN FISCAL YEARS
Fiscal
Year
Total Water &
Water &
Ended
Sewer Consumption
Sewer
September 30,
i In Gallons-i
Base Rate
2022
1,700,418,300
39.04
2021
1,629,336,300
38.15
2020
1,982,664,200
38.15
2019
1,622,930,500
37.15
2018
1,583,312,400
35.61
2017
1,583,462,300
34.35
2016
1,509,250,000
30.11
2015
1,472,948,300
26.54
2014
1,543,351,600
24.38
2013
1,550,039,700
22.69
Water & Sewer
Initial Rate Per
1.000 Gallons
7.79
6.97
6.97
6.84
6.53
6.21
5.73
5.43
5.17
4.84
98
TAXPAYERS
City of Selma
City of Cibolo
Crossvine Master Community
WHC Schertz Apts, LLC
Pecan Grove
Sycamore Creek Apartments
Comal ISD Middle School
DDC Ashton, LTD
APG Texas 1LP
Sysco
Lions Fut Ball Club
Manco Structures
Big Time Management
Legacy Oaks Apartments
City of Schertz (Soccor Field)
YMCA/Splash Pad
TOTAL
CITY OF SCHERTZ, TEXAS
PRINCIPAL WATER AND SEWER CONSUMERS
LAST TEN FISCAL YEARS
2022
Percentage
Total
of
Water
Total City
Consumption
Water
(In Gallons)
Rank
Consumption
231,927,200
1
13.64%
21,715,000
2
1.28%
15,447,000
3
0.91%
11,787,500
4
0.69%
10,628,900
5
0.63%
8,381,500
6
0.49%
7,743,900
7
0.46%
6,534,100
8
0.38%
5,772,600
9
0.34%
5,059,800
10
0.30%
TABLE 7
2013
Percentage
Tota I
of
Water
Total City
Consumption
Water
(In Gallons)
Rank Consumption
8,567,600
6,447,400
6,766,200
20,104,300
25,141,000
6,304,900
6,275,400
4,554,000
4,444,100
4,196,400
324,997.500 19.11% 92,801,300
Total City Water Consumption 1,700,418,300
1,550,039,700
3
5
4
2
1
6
7
8
9
10
0.55%
0.42%
1.62%
0.41%
0.40%
0.29%
0.29%
0.27%
4.25%
99
CITY OF SCHERTZ, TEXAS TABLE 8
DIRECT AND OVERLAPPING PROPERTY TAX RATES
LAST TEN FISCAL YEARS
(UNAUDITED)
City Direct Rates
Overlapping
School Districts
Schertz-
Cibolo-
Fiscal
Basic
Debt
Universal
Comal
Year
Rate
Service
Total
City ISD
ISD
2022
0.3517
0.1604
0.5121
1.3950
1.2920
2021
0.3470
0.1651
0.5121
1.4106
1.2757
2020
0.3496
0.1650
0.5146
1.4200
1.3200
2019
0.3497
0.1649
0.5146
1.4900
1.3200
2018
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
Overlapping Counties
_
_
Bexar
Community
Fiscal
Bexar
Hospital
River
College
Comal
Guadalupe
Year
County _
District
Authority
District
County
County
2022
0.2763
0.2762
0.0186
0.1492
0.3140
0.3799
2021
0.2624
0.2762
0.0186
0.1492
0.3224
0.3854
2020
0.2774
0.2762
0.0186
0.1492
0.3224
0.3319
2019
0.2774
0.2762
0.0186
0.1492
0.2952
0.3319
2018
0.2928
0.2762
0.0173
0.1492
0.3078
0.3799
2017
0.2928
0.2762
0.0173
0.1492
0.2928
0.3851
2016
0.2929
0.2762
0.0173
0.1492
0.2929
0.3851
2015
0.2929
0.2762
0.0178
0.1492
0.2929
0.3941
2014
0.2782
0.2762
0.0174
0.1492
0.2782
0.3999
2013
0.3052
0.2762
0.0174
0.1416
0.3504
0.4036
100
CITY OF SCHERTZ, TEXAS
PRINCIPAL PROPERTY OF TAX PAYERS
CURRENT YEAR AND NINE YEARS AGO
2022
Percentage
of
Total City
Taxable
Taxable
Assessed
Assessed
Taxpayer
Value
Rank
Value
_
SYSCO Central Texas $
122,083,920
1
2.99%
Caterpillar Inc.
101,547,810
2
2.49%
Amazon Com Services Inc
74,629,384
3
1.83%
Texas Circle 161 LLC
59,963,917
4
1.47%
Rebublic Beverage Company
56,575,395
5
1.39%
Colfin 2018-3 Industrial Owner LLC
51,009,011
6
1.25%
Sun Life Assurance Company of Canada
28,164,560
7
0.69%
DG Industrial Portfolio II Property Owner LF
25,685,820
8
0.63%
SA WFR Partners LLC
23,400,000
9
0.57%
1290 Entertainment LLC
23,400,000
10
0.57%
SYSCO San Antonio, Inc.
Capital Group Companies Inc.
San Antonio MTA LP
SC Schertz LLC
Visionworks
Salof Properties II LLC
Wal-Mart Real Estate Business Trust
H.E.Butt Grocery Co.
Totals
Total Taxable
Assessed Value
$ 566,459,817
$ 4,084,425,464
TABLE 9
2013
Percentage
of
Total City
Taxable Taxable
Assessed Assessed
Value Rank Value
19,098,384 5 0.97%
47,821,320 1 2.43%
44,955,071 2
41,515,938 3
23,026,185 4
16,900,000 6
14,471,578 7
14,300,000 8
13,137,327 9
11,682,083 10
13.87% $ 246,907,_886
$ 1,968,808,829
2.28%
2.11%
1.17%
0.86%
0.74%
0.73%
0.67%
0.59%
12.54%
101
CITY OF SCHERTZ, TEXAS
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(UNAUDITED)
Collected Within
Fiscal Year Taxes Levied Fiscal Year of Levy Collections In
Ended for the % of Subsequent
September 30 Fiscal Year Amount Levy Years
2022
$ 22,951,478
$ 22,775,565
99.23%
$
2021
22,011,090
21,787,625
98.98%
2020
20,854,329
20,758,493
99.54%
2019
19,922,568
19,825,244
99.51%
2018
18,010,824
17,899,825
99.38%
2017
17,356,822
17,241,556
99.34%
2016
16,238,180
16,160,248
99.52%
2015
14,793,867
14,738,760
99.63%
2014
13,383,759
13,297,258
99.35%
2013
12,536,540
12,455,336
99.35%
40,262
68,692
85,062
71,342
72,675
57,835
44,730
68,412
71,432
TABLE 10
Total Collections
To Date
% of
Amount
Levy
$ 22,788,154
99.29%
21,827,887
99.17%
20,827,185
99.87%
19,910,306
99.94%
17,971,167
99.78%
17,314,231
99.75%
16,218,083
99.88%
14,783,490
99.93%
13,365,670
99.86%
12,526,768
99.92%
102
CITY OF SCHERTZ, TEXAS
Fiscal
Year
Ended
September 30
TAXABLE ASSESSED VALUE
LAST TEN FISCAL YEARS
(UNAUDITED)
Taxable
Value Residential Commercial
January 1, Property Property
2022
2021
$ 3,618,134,708 $
1,317,486,482
2021
2020
3,060,963,760
1,505,592,717
2020
2019
3,004,686,341
1,613,615,732
2019
2018
2,860,333,982
1,401,636,211
2018
2017
2,049,067,806
2,344,365,139
2017
2016
1,895,085,016
2,269,590,522
2016
2015
1,702,601,947
2,087,223,204
2015
2014
1,568,651,309
1,793,803,709
2014
2013
1,445,731,509
1,540,565,195
2013
2012
1,383,423,359
1,396,349,905
*Taxable Assessed Value is before any applicable freeze adjustments.
Source: Bexar, Comal and Guadalupe County Appraisal Districts.
103
TABLE it
Tax -Exempt Other
Propertv Property
Total Taxable
Assessed
Value*
Total
Direct
Tax Rate
(961,929,765) $
232,196,469
$ 4,205,887,894
0.5121
(716,028,336)
276,109,231
4,070,815,340
0.5121
(716,028,336)
250,185,870
4,152,459,607
0.5146
(621,773,006)
260,571,835
3,900,769,022
0.5146
(757,265,921)
146,860,809
3,647,504,903
0.4911
(649,173,041)
132,002,406
3,375,850,131
0.4911
(544,328,535)
130,353,515
3,037,267,611
0.4974
(460,271,461)
135,084,054
2,752,562,574
0.4974
(340,747,650)
107,013,520
2,600,365,551
0.4999
(285,245,142)
105,837,429
2,411,270,623
0.4843
104
CITY OF SCHERTZ, TEXAS
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Governmental Activities Business -Type Activities
General
Certificates
Certificates
Fiscal
Obligation
of
Tax
Financing Revenue
of
Year
Bonds
Obligation
Notes
Arrangement Bonds
Obligation
2022
$ 58,837,302
$ 27,869,333
$ -
$ 109,228 $ -
$ 24,216,388
2021
40,390,000
14,200,000
155,000
136,535 -
10,655,000
2020
44,620,000
15,415,000
345,000
25,695 -
11,200,000
2019
48,320,000
16,235,000
530,000
25,699 -
12,330,000
2018
52,752,896
13,636,966
715,000
34,264 -
13,211,178
2017
56,613,614
9,011,415
1,230,000
25,147 -
8,174,779
2016
56,352,272
4,057,189
1,740,000
58,321 -
8,331,966
2015
53,410,128
277,801
1,210,000
91,495 -
8,946,153
2014
56,487,433
543,934
1,585,000
123,370 -
9,561,204
2013
58,693,750
801,767
2,155,000
22,398 2,215,000
5,048,233
105
TABLE 12
Business -Type Activities
General
Obligation Financing
Bonds Arranoement
$ 5,111,592
$ 327,685 $
2,895,000
475,121
3,685,000
134,662
4,445,000
199,421
2,127,657
289,553
2,533,626
92,721
3,014,595
162,262
3,490,564
231,803
3,966,533
347,705
2,127, 502
-
Tax
Notes
Total
Primary
Government
Percent
of Gross
Income
Per
Capita
-
$ 116,471,528
5.24%
$ 2,034
-
68,906,656
4.25%
1,619
150,000
75,575,357
4.50%
1,769
460,000
82,545,120
5.60%
1,932
765,000
83,532,514
5.98%
2,028
1,065,000
75,076,605
6.22%
1,996
1,360,000
75,076,605
6.39%
1,979
1,640,000
69,297,944
5.99%
1,830
65,000
72,680,179
6.35%
1,992
130,000
71,193,650
6.50%
1,982
106
CITY OF SCHERTZ, TEXAS
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
TABLE 13
Fiscal
Year
General
Obligation
Bonds
General Bonded Debt Outstanding
Less:
Certificates Amounts
of Available for
Obligation Debt Service
Total
Percentage of
Actual Taxable
Value of
Property
Per
Capita
2022
$ 63,948,894
$ 52,085,721
$ (1,550,080)
$ 114,484,535
2.72%
$ 2,581
2021
43,285,000
24,855,000
( 934,899)
67,205,101
1.65%
1,558
2020
46,223,908
15,801,473
( 1,051,874)
60,973,507
1.47%
1,481
2019
54,687,960
16,834,029
( 1,084,908)
70,437,081
1.81%
1,785
2018
54,880,553
13,636,966
( 809,427)
67,708,092
1.86%
1,785
2017
59,147,240
9,011,415
( 924,989)
67,233,666
1.99%
1,776
2016
59,366,867
4,057,189
( 813,306)
62,610,750
2.06%
1,716
2015
56,900,692
277,801
( 847,178)
56,331,315
2.05%
1,568
2014
60,453,966
543,934
( 517,199)
60,480,701
2.33%
1,753
2013
60,821,252
801,767
( 227,674)
61,395,345
2.55%
1,830
107
CITY OF SCHERTZ, TEXAS
TABLE 14
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
Governmental Unit
Debt repaid with property taxes:
11.17q►11r1W_1N
Debt
Outstanding
Estimated
Percentage
Applicable*
Estimated
Share of
Overlapping
Debt
Alamo CCD
$ 538,300,000
0.32% $
1,722,560
Bexar County
2,006,080,000
0.32%
6,419,456
Bexar County Hospital District
874,490,000
0.32%
2,798,368
Comal County
122,040,000
4.18%
5,101,272
Comal ISD
1,049,362,848
4.42%
46,381,838
Guadalupe County
13,145,000
20.10%
2,642,145
Schertz-Cibolo-Universal ISD
378,843,715
48.29%
182,943,629
Subtotal, Overlapping Debt
City Governmental Activities Direct Debt
TOTAL NET OVERLAPPING DEBT
248,009,268
86,815,863
$ 334,825,131
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, 2021 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
Assessed Value
Debt Limit
Total Net Debt Applicable to Limit
Total Debt Margin
Assessed Value
Debt Limit
Total Net Debt Applicable to Limit
Total Debt Margir
CITY OF SCHERTZ, TEXAS
DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
2019
$ 3,900,769,022
390,076,902
66,019,954
$ 324,056,948
2016
TABLE 15
$ 4,070,8151340
$ 407,081,534
$ 86,815,863
( 934,899) 85,880,964
$ 321,200,570
Fiscal Year
2020
$ 4,152,459,607
415,245,961
61,318, 507
$ 353,927,454
2017
26.74%
2021
$ 4,070,815,340
407,081,534
53,946, 636
$ 353,134, 898
2018
$ 3,375,850,131 $ 3,647,504,903 $ 3,783,027,833
337,585,013 364,750,490 378,302,783
61,181,169 65,792,916 66,329,699
$ 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
109
CITY OF SCHERTZ, TEXAS
PLEDGED REVENUE COVERAGE
LAST TEN FISCAL YEARS
Water Revenue Bonds
Utility
Less:
Fiscal
Service
Operating
Year
Charges
Expenses
2022 $
30,876,559 $
24,362,098 $
2021
28,030,614
22,231,246
2020
29,735,911
24,032,772
2019
27,246,250
22,622,986
2018
27,099,237
20,802,263
2017
25,390,713
18,697,162
2016
221003,794
17,603,487
2015
201700,369
15,916,597
2014
19,147,872
15,246,653
2013
17,696,327
14,553,274
Net
Available
Debt Service
Revenue Principal
TABLE 16
Interest Coverage
6,514,461 $
1,180,000
$ 912,019
3.11
5,799,368
1,856,953
515,413
2.44
5,703,139
1,961,953
612,643
2.22
4,623,264
1,845,132
561,880
1.92
6,296,974
1,671,134
391,609
3.05
6,693,551
1,554,541
368,390
3.48
4,400,307
1,441,741
417,346
2.37
4,783,772
1,448,407
428,912
2.55
3,901,219
1,010,500
426,100
2.72
3,143,053
728,800
359,680
2.89
NOTE: Details regarding the City's outstanding debt can be found in the notes to the basic financial
statements. Operating expenses do not include the depreciation, interest, or amortization expenses.
110
CITY OF SCHERTZ, TEXAS TABLE 17
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
Fiscal
Year
Population
Personal
Income
Per Capita
Personal
Income
Median
Age
Education
Level in
Years of
Schooling
School
Enrollment
Unemployment
Rate
2022
44,360 $
1,722,143,920
$ 38,822
37.9
15.9
15,877
3.3%
2021
43,125
1,641,725,625
38,069
37.6
16.2
15,887
3.9%
2020
42,734
1,680,129,944
39,316
37.4
16.2
15,675
5.1%
2019
41,948
1,473,255,708
35,121
38.0
16.2
15,925
2.7%
2018
41,182
1,396,481,620
33,910
37.3
15.9
15,817
3.2%
2017
39,453
1,266,046,770
32,090
37.2
15.9
15,497
3.8%
2016
37,938
1,175,319,240
30,980
36.9
15.8
15,460
3.4%
2015
37,865
1,157,835,970
30,578
36.1
15.6
15,009
3.2%
2014
36,477
1,144,465,875
31,375
36.9
15.4
14,515
5.1%
2013
35,929
1,095,331,494
30,486
37.1
15.4
14,058
5.5%
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.
ill
CITY OF SCHERTZ, TEXAS
TABLE 18
TOP TEN PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
2022
2013
Percentage
Percentage
of Total City
of Total City
Employer
Employees
Employment
Employees
Employment
Schertz-Cibolo-Universal City ISD
1,890
9.00%
900
5.56%
Amazon
1,221
5.90%
-
-
Sysco Central Texas, Inc
843
4.00%
350
4.02%
Republic National Distributing Company
685
3.30%
250
1.55%
Brandt Companies
652
3.10%
350
2.16%
Fed Ex Ground - Doerr Lane, Schertz
600
1.40%
300
-
City of Schertz
404
1.90%
350
2.16%
FedEx Freight
350
1.70%
175
1.08%
Visionworks
350
1.70%
550
3.40%
Hollingsworth Logistics Group
275
1.30%
-
-
Wal-mart Stores
400
2.47%
H.E.B Grocery Co.
350
2.16%
CST Distribution
200
1.24%
TOTAL
7,270
33.30%
4,175
25.80%
Source: City Economic Development Corporation
112
Function
CITY OF SCHERTZ, TEXAS
FULL-TIME EQUIVALENT CITY GOVERNMENTAL EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
Full -Time Equivalent Employees as of September 30,
2013 2014 2015 2016
General Government
City Manager
7
6
6
5
Court Support
-
-
-
-
Municipal Court
6
6
6
6
Customer Relations
5
5
5
5
Planning and Zoning
3
3
3
4
General Services
13
13
13
-
City Secretary
2
2
2
2
Public Affairs
4
4
4
4
Records Management
1
1
1
1
Schertz Magazine
2
2
2
2
Engineer
3
3
3
7
GIS
2
2
2
2
Information Technology
6
6
6
6
Human Resources
4
4
4
5
Finance
6
6
8
8
Purchasing
4
3
3
3
Fleet Service
4
4
6
6
Building Maintenance
2
2
3
-
Facility Services
-
-
-
16
Public Safety
Police
75
75
75
78
Fire
32
33
33
36
Inspections
7
8
9
8
Marshal Services
8
8
8
8
Health
Animal Control
6
7
7
8
Environmental Health
-
-
-
3
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
6
6
6
4
Business Office
10
10
10
10
Water and Sewer
16
16
16
16
Drainage
8
8
8
6
EMS
35
36
37
39
Economic Development
4
4
4
4
TOTAL
318
320
327
339
113
TABLE 19
Full -Time Equivalent Employees as of September 30,
2017 2018 2019 2020 2021 2022
5
5
5
5
5
5
6
6
4
4
4
4
5
5
3
3
3
3
4
4
3
3
4
4
2
2
2
2
2
2
4
5
5
5
4
4
2
-
-
-
-
-
7
7
7
8
8
10
2
2
2
2
2
3
7
8
8
8
8
9
5
5
5
5
5
5
8
8
7
7
7
7
3
3
3
3
3
3
6
6
7
8
8
9
16
17
10
10
11
11
81
86
86
87
90
94
39
45
45
46
46
50
8
11
12
12
12
14
5
-
-
-
-
-
8
7
7
8
9
9
3
4
4
4
5
6
10
12
11
11
11
15
1
1
5
5
6
7
14
15
14
14
14
15
14
14
14
17
17
17
4
4
4
4
4
4
10
10
9
9
9
9
16
19
19
19
21
21
6
8
8
8
8
8
41
45
45
45
55
65
4
4
4
4
4
_ 4
346
366
357
365
384 _
_ 416
114
CITY OF SCHERTZ, TEXAS
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Fiscal Year
Function
2013
2014
2015
2016
General Government
Building Permits Issued
3,054
2,869
3,087
5,919
Schertz Tales
Number of Magazines Printed
168,000
180,000
180,000
180,000
Police
CFS
19,894
19,067
36,138
39,064
Arrests
800
776
595
603
Traffic Violations
19,335
15,077
12,306
8,960
Accidents
1,960
1,823
2,040
2,119
Fire
Number of Rescue/Other Responses
2,046
1,759
2,167
2,327
Number of Fire Responses
108
110
99
67
Number of Inspections
332
252
698
440
Number of Training Classes Conducted
132
125
150
460
Number of Pre -Plan Inspections
729
735
980
867
EMS
Requests for Transport
8,391
8,840
9,286
9,723
Actual Transports
5,451
5,713
6,118
6,123
EMT Students
116
87
84
89
Marshal Service
Warrants Issued
3,344
2,354
3,798
2,587
Warrants Cleared
4,687
3,781
3,691
3,492
Food Establishment Permits
127
82
135
145
Food Establishment Inspection
281
218
136
153
Foster/Adoption Inspections
24
16
22
21
Parks
Facility Reservations
258
301
275
240
Community and Civic Centers
Civic Center
444
458
478
483
Community Center Rentals
735
437
455
370
North Community Center Rentals
288
244
209
185
115
TABLE 20
Fiscal Year
2017
2018
2019
2020
2021
2022
4,800
5,251
4,748
2,993
4,474
4,000
180,000
180,000
180,000
187,500
189,700
191,700
34,428
45,190
41,327
57,149
29,007
32,170
423
624
603
527
416
326
8,001
11,359
12,541
8,326
6,980
6,504
2,057
2,244
2,304
1,752
2,076
2,341
2,758
3,055
3,804
3,953
4,837
4,895
86
161
100
108
205
232
519
562
528
500
548
547
340
600
804
763
770
632
922
788
865
814
848
324
9,956
10,059
10,759
10,713
12,251
13,520
6,201
6,165
6,738
6,549
7,444
8,332
90
90
90
84
123
154
2,816
1,598
2,036
1,738
2,095
1,708
2,822
2,022
1,834
664
1,451
1,373
201
181
55
189
142
173
13
211
96
209
172
142
21
18
8
10
12
5
251
248
241
75
237
294
590
516
441
293
253
354
455
381
326
193
291
299
230
235
188
92
153
197
116
CITY OF SCHERTZ, TEXAS
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Fiscal Year
Function
2013
2014
2015
2016
Animal Services
Number of Animals Handled
1,326
1,218
1,304
1,313
Number of Adoptions
362
309
357
410
Number of Return to Owners
231
222
213
205
Number of Transfers
301
316
296
316
Libra
Annual Circulation
404,691
395,998
394,766
399,622
Library Visits
254,633
253,237
259,413
255,109
Library Program Attendance
12,581
15,048
13,825
15,282
Registered Users
31,658
30,759
31,138
30,702
Water
New Connections
168
235
369
213
Water Main Breaks
38
45
45
45
Total Consumption
15,500,413
15,497,071
14,757,134
16,097,931
(Thousands of Gallons)
Daily Average Consumption
(Thousands of Gallons)
42,466
42,458
40,431
43,942
Peak Daily Consumption
(Thousands of Gallons)
9,483
10,089
8,385
10,985
Total Customers
12,757
13,324
13,570
13,877
Average Use Per Connection
5,905
5,467
5,135
5,352
Sewer
Total Customers
11,456
11,578
11,413
12,282
Facilities Maintenance
Number of Buildings Maintained
19
19
21
21
Square Footage
166,591
166,591
234,202
234,202
117
TABLE 20
Fiscal Year
2017
2018
2019
2020
2021
2022
1,283
926
1,157
1,015
1,070
1,125
348
319
366
450
329
371
228
218
233
335
284
252
326
297
227
188
152
205
385,206
414,790
447,379
254,643
281,659
359,272
235,428
258,695
237,821
102,297
91,291
157,428
16,814
16,945
18,412
6,524
2,541
11,357
31,432
30,806
33,104
31,296
30,291
29,612
303
235
300
357
342
291
45
50
52
65
38
64
15,222,373
15,833,124
17,602,330
1,976,687
1,617,120
21,606,589
41,705
43,378
48,225
54,155
59,377
5,919
11,000
9,083
11,094
14,011
9,160
8,429
14,124
14,678
16,434
13,683
15,861
16,228
5,244
5,294
4,587
5,600
101,955
133,143
12,398
12,866
12,853
13,112
14,128
14,295
21
25
26
27
26
28
234,202
245,218
257,218
301,656
257,218
257,218
118
CITY OF SCHERTZ, TEXAS
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Fiscal Year
Function
2013
2014
2015
2016
Police
Stations
1
1
1
1
Patrol Units
42
42
48
50
Fire
Stations
2
2
2
2
Fire Vehicles
13
15
16
16
EMS
Ambulances
7
7
9
9
Marshal Service
Vehicles
7
7
7
7
Streets
Streets, Paved (Miles)
137
141
149
153
Streets, Unpaved (Miles)
5
5
5
5
Parks and Recreation
Parks - Developed
13
13
14
15
Parks - Undeveloped
8
8
9
10
Playground
16
16
18
19
Swimming Pools
2
2
2
2
Baby Pools
2
2
2
2
Baseball/Softball Diamonds
12
12
15
15
Soccer Fields
12
12
12
12
Community Centers
4
4
4
4
Animal Control
Control Vehicle
3
3
3
4
Li bra
Facility
1
1
1
1
Volumes in Collection
86,221
100,478
113,085
97,412
Water
Number of Pump Stations
5
5
5
5
Water Mains (Miles)
197
199
210
211
Sewer
Sanitary Sewers (Miles)
87
90
96
98
Storm Sewers (Miles)
11
it
12
12
Facilities Maintenance
Vehicles
5
5
6
6
Fleet
Generators
3
3
4
4
Vehicles & Equipment
N/A
N/A
N/A
N/A
119
TABLE 21
Fiscal Year
2017
2018
2019
2020
2021
2022
1
1
1
1
1
1
64
69
68
72
66
76
2
3
3
3
3
3
16
18
19
20
20
24
8
8
9
9
10
11
7
7
7
7
7
3
159
153
165.4
165
167.5
172
5
5
5
5
5
5
20
21
21
21
21
21
4
4
4
4
5
5
19
19
20
21
21
36
4
4
4
4
4
3
2
2
2
2
2
1
15
15
15
15
15
15
12
12
12
12
12
12
4
4
4
4
4
4
3
4
4
6
6
8
1
1
1
1
1
1
107,382
110,266
150,972
139,447
149,965
155,715
5
5
5
6
7
6
221
225
228
228.5
231.4
236
110
113
116
116.2
119.5
124
12
13.6
13.8
13.8
14.7
16
6
11
11
10
8
10
4
7
10
7
8
8
N/A
384
352
341
376
373
120