Annual Comprehensive Financial Report 2022CITY OF SCHERTZ, TEXAS
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED
SEPTEMBER 30, 2022
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
Page
Number
INTRODUCTORY SECTION
Letter of Transmittal ..................................................................................................... i - iv
City Officials ................................................................................................................. v
Organizational Chart ..................................................................................................... vi
Certificate of Achievement ............................................................................................. vii
FINANCIAL SECTION
Independent Auditor’s Report ......................................................................................... 1 – 3
Management Discussion and Analysis .............................................................................. 4 – 12
Basic Financial Statements
Government-Wide Financial Statements:
Statement of Net Position ......................................................................................... 13 - 14
Statement of Activities ............................................................................................. 15 – 16
Fund Financial Statements:
Governmental Funds
Balance Sheet ...................................................................................................... 17 – 18
Reconciliation of the Balance Sheet of Governmental
Funds to the Statement of Net Position ............................................................... 19
Statement of Revenues, Expenditures, and
Changes in Fund Balances ................................................................................. 20 – 21
Reconciliation of Revenues, Expenditures and Changes
In Fund Balances – Governmental Funds to the
Statement of Activities ...................................................................................... 22
Proprietary Funds
Statement of Net Position ...................................................................................... 23 - 24
Statement of Revenues, Expenses, and
Changes in Fund Net Position ............................................................................. 25
Statement of Cash Flows ....................................................................................... 26 - 27
Notes to the Financial Statements ............................................................................. 28 – 54
Required Supplementary Information
Schedule of Revenues, Expenditures, and Changes in
Fund Balance – General Fund – Budget and Actual ...................................................... 55 - 56
Schedule of Revenues, Expenditures, and Changes in
Fund Balance – Economic Development Corporation – Budget and Actual ....................... 57
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 Liability and 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
Fund Balance – General Fund ................................................................................. 66
Comparative Balance Sheets – Economic Development Corporation ................................. 67
Comparative Schedules of Revenues, Expenditures, and Changes in
Fund Balance – Economic Development Corporation ................................................. 68
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
in Fund 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
Fund Balances 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
Taxable Assessed 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
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INTRODUCTORY SECTION
§CC1HllElRlrZ COMMUNITY SERVICE OPPORTUNITY February 28, 2023 To the Honorable Mayor, City Council, and the Citizens·ofSchertz: 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 fmancial report of the City of Schertz for the fiscal year ended September 30, 2022. This report consists of management's representations concerning the fmances of the City of Schertz. Consequently, management assumes full responsibility for the completeness and reliability of all the information presented in this report. To provide a reasonable basis for making these representations, management of the City of Schertz has established a comprehensive internal control framework that 1s 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 fmancial 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 fmancial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this fmancial report is complete and reliable in all material respects. The City of Schertz's fmancial 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 fmancial 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 fmancial stat�ments; 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 fmancial 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 fmancial section of this report. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic fmancial 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 •210.619, 1000 Ill
§CClHl[lRTZ I COMMUNITYSERVICE 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 30th.
The fiscal year for Schertz is from October 1 through September 30. The appropriated budget is prepared by each department ( e.g. police). The City Manager may make transfers of appropriations within a department. The City Manager may make transfers between departments and funds with City Council approval. Budget to actual comparisons are provided in this report for each individual governmental fund for which an appropriated annual budget has been adopted. For the general fund, this comparison is presented on pages 55-56 as part of the required supplementary information.
Factors Affecting Financial Condition
The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City of Schertz operates.
Local economy. Economic growth in Schertz remained strong in 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, DallasFort Worth, and San Antonio, are below the state average. Schertz, as included in the San Antonio-New Braunfels MSA, had an unemployment rate of 3.5% during this time.
As another indicated of economic growth, the City of Schertz realized a 7.4% 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 •
§<C]H[]E]R.l[l COMMUNITY SERVICE OPPORTUNITY 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 received 4%. 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 Parttime 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 (F ASB) and the American Institute of Certified Public Acqountants (AICP A). 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 fmancial accounting software 1400 Schertz Parkway Schertz, Texas 78154 210.619.1000
§<CJH[]CRlCl I COMMUNITYSERVICE OPPORTUNITY
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 fmancial results remain strong. While additional debt was issued during the year, Staff closely monitors and plans the amount of issuance
to keep steady debt ratios per capita, per revenue, and per operations tax rate to the debt tax rate. Examples of these ratios can be found in the Statistical Section on pages 105-110. A more detailed summary of the City's
Financial Performance is available in the Management Discussion and Analysis section on page 4.
Independent Audit. Every year an independent audit is performed of the general ledger, accounts, financial records, and transactions of all city departments. The audit is completed by an independent certified public accounting firm selected by the City Council. The City is in compliance with this requirement and the independent auditor's report by Pattillo, Brown & Hill, LLP. Certified Public Accountants, has been included in this report.
Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Schertz for its 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 fmancial 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 fmancial 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 City Manager
1400 Schertz Parkway Schertz, Texas 78154 210.619.1000
James P. Walters Finance Director
v
CITY OF SCHERTZ, TEXAS
CITY OFFICIALS
MAYOR RALPH GUTIERREZ
MAYOR PRO-TEM ALLISON HEYWARD
CITY COUNCIL MARK E. DAVIS
JILL WHITTAKER
MICHAEL DAHLE
DAVID SCAGLIOLA
TIM BROWN
CITY MANAGER STEVE WILLIAMS
DIRECTOR OF FINANCE JAMES WALTERS
CITY ATTORNEY CHARLES ZECH, DENTON, NAVARRO, ROCHA, BERNAL & ZECH, P.C.
CITY OF SCHERTZ
ORGANIZATIONAL CHART
FY 2021-22
*Appointed by City Council
Citizens
Mayor
& City Council
Prosecuting
Attorney*City Secretary*City Manager*
Assistant to the
City Manager
Public Affairs
Assistant City
Manager
Operations
Police
Fire Rescue
EMS
Public Works
Fleet & Facility
Services
Human Resources
Assistant City
Manager
Development
Development
Services
Engineering
Parks, Recreation,
and Community
Service
Information
Technology
Library
Geographic
Information
Systems
Finance
Executive Director
Economic
Development
Schertz Economic
Development
Corporation
Municipal Court
Judge*City Attorney*
vi
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Schertz
Texas
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
September 30, 2021
Executive Director/CEO
vii
FINANCIAL SECTION
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INDEPENDENT AUDITOR’S REPORT
Honorable Mayor and
Members of the City Council
City of Schertz, Texas
Report on the 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
2
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.
3
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 February
28, 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
February 28, 2023
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MANAGEMENT’S
DISCUSSION AND ANALYSIS
4
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.
5
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.
6
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, $53,846,695, may be
used to meet the government's ongoing obligations to citizens and creditors.
At the end of the current fiscal year, the City of Schertz is able to report positive balances in all three categories of
net position, both for the government as a whole, as well as for its separate governmental and business-type
activities. The same situation held true for the prior fiscal year.
2022 2021 2022 2021 2022 2021
Current and other assets 105,714,129$ 67,416,673$ 73,186,420$ 56,132,860$ 178,900,549$ 123,549,533$
Capital assets 159,972,447 149,570,599 108,872,222 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 153,547,043$ 137,531,279$ 143,197,863$ 131,717,416$ 296,744,906$ 269,248,695$
Government-Wide
City of Schertz's Net Position
Activities Activities Total
Governmental Business-Type
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 $13 million of capital contribution revenue
related to dedicated infrastructure assets and also experienced sharp increases in property and sales taxes. These
increases stem from the City’s continued rapid population growth; continued new housing and business
developments resulted in increased assessed value for property taxes and resulted in the creation of infrastructure
that was dedicated to the City. The related population increases resulted in increased economic activity that
increased sales tax revenues.
7
The following table indicates changes in net position for governmental and business-type activities followed by
graphs displaying total revenues and expenses by type:
2022 2021 2022 2021 2022 2021
Revenues:Program revenues:
Charges for services 6,371,968$ 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 7,784,670
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 15,729,584 11,164,231 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$ 137,531,279$ 143,197,863$ 131,717,416$ 296,744,906$ 269,248,695$
Government-Wide
City of Schertz's Changes in Net Position
Activities Activities Total
Business-TypeGovernmental
TOTAL REVENUES – GOVERNMENT-WIDE
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
Charges forServices OperatingGrants andContributions
Capital GrantsandContributions
PropertyTaxes Other Taxes UnrestrictedInvestmentEarnings
Miscellaneous
2022 2021
8
TOTAL EXPENSES – GOVERNMENT-WIDE
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
$20,000,000
GeneralGovernment Public Safety PublicEnvironment Parks andRecreation Cultural Health Administration Interest andOther Fees
2022 2021
GENERAL REVENUE BY SOURCE – GOVERNMENTAL ACTIVITIES
Property Tax49%Sales Tax39%
Franchise Tax6%
Occupancy Tax2%Investment Earnings1%
Miscellaneous3%
9
TOTAL REVENUES AND EXPENSES – BUSINESS-TYPE ACTIVITIES
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
$45,000,000
$50,000,000
2022 2021
Revenues Expenses
BUSINESS-TYPE REVENUES AND EXPENSES
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
Water and Sewer Utilities EMS
Revenues Nonoperating Revenues Capital Contributions and Transfers Expenses
10
Financial Analysis of the Government's Funds
As noted earlier, the City of Schertz uses fund accounting to ensure and demonstrate compliance with finance-
related legal requirements.
Governmental funds. The focus of the City's governmental funds is to provide information on near-term inflows,
outflows, and balances of spendable resources. Such information is useful in assessing the City's financing
requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net
resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the City's governmental funds reported combined ending fund
balances of $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.
11
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 $268,844,669 (net of accumulated depreciation), including several projects in
progress from voter approved bonds.
2022 2021 2022 2021 2022 2021
Land 8,883,427$ 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 80,963,743)( 74,064,147)( 41,517,395)( 38,770,208)( 122,481,138)( 112,834,355)(
TOTALS 159,972,447$ 149,570,599$ 108,872,222$ 98,743,525$ 268,844,669$ 248,314,124$
Activities Activities Total
Governmental Business-Type
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 II.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 $118,036,445. The
related principal and interest payment for the bonds are backed by an annual ad valorem tax levied against all
taxable property within the City. The City of Schertz maintains a "AA+" rating from Standard and Poors.
2022 2021 2022 2021 2022 2021
General obligation bonds 55,070,000$ 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$ 118,036,445$ 73,724,518$
Activities Activities TotalGovernmentalBusiness-Type
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.
12
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 $24,000,000 adding an additional manufacturing line.
Sysco Central Texas site was awarded economic development incentives to secure a 100,000 sq ft expansion of their
existing facility, currently under construction.
In Southern Schertz, the SEDC and City staff continue to work with CORE5 on a 1.7M sq. ft. development of speculative industrial product near the intersection of Loop 1604 and IH-10, kicking off industrial development along
IH-10.
Staff will continue to watch as the economy slows down. During COVID and the great recession, property values
continued to rise and no discernable impacts of foreclosures. Sales taxes have been recession resistant in Schertz
due to the business types and markets however, new residential development has slowed down over the past few
years. Staff is factoring this in its 5-year forecast for slower growth.
Overall, the City of Schertz continues to be an extremely attractive option as a center for logistics and distribution.
Accelerated by the rising demand for delivery to consumers and changes in supply chain management philosophy
moving from “just in time” to “just in case,” Schertz’s location along IH-35 and IH-10 corridor continues to be a
strong advantage.
Requests for Information
This financial report is designed to provide a general overview of the City's finances for all those with an interest in
the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Office of the Finance Director, City of Schertz, 1400 Schertz Parkway, Schertz, Texas 78154.
BASIC
FINANCIAL STATEMENTS
Governmental Business-Type
Activities Activities Total
ASSETSCash and cash equivalents 92,621,639$ 28,415,782$ 121,037,421$
Investments 4,631,657 1,174,985 5,806,642 Receivables, net of allowances:
Taxes 4,449,274 - 4,449,274 Accounts and other 2,214,350 7,290,865 9,505,215
Accrued interest - 6,324 6,324 Inventories 154,096 218,418 372,514 Prepaids 29,080 2,311 31,391
Internal balances 16,139)( 16,139 -
Restricted assets:Cash and cash equivalents 869,564 16,041,389 16,910,953
Investments - 1,839,607 1,839,607 Service concession arrangement receivable: Due within one year 90,909 - 90,909
Due in more than one year 669,699 - 669,699 Investment in joint venture - 18,180,600 18,180,600
Capital assets:Land 8,883,427 2,415,017 11,298,444
Water rights - 70,245 70,245 Buildings and improvements 52,701,579 3,703,626 56,405,205
Equipment and vehicles 15,472,681 6,823,569 22,296,250 Infrastructure 136,194,073 115,715,584 251,909,657 Construction in progress 27,684,430 21,661,576 49,346,006
Accumulated depreciation 80,963,743)( 41,517,395)( 122,481,138)(
Total Assets 265,686,576 182,058,642 447,745,218
DEFERRED OUTFLOWS OF RESOURCESDeferred 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
LIABILITIESAccounts 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
Primary Government
CITY OF SCHERTZ, TEXAS
STATEMENT OF NET POSITION
SEPTEMBER 30, 2022
The accompanying notes are an integral part
of these financial statements.13
Governmental Business-Type
Activities Activities Total
LIABILITIES (continued)
Noncurrent liabilities:
Due within one year:Compensated absences 240,013$ 72,971$ 312,984$
Total OPEB liability 76,415 23,894 100,309 Service concession arrangement 55,241 - 55,241
Long-term debt 5,957,307 1,661,921 7,619,228
Due in more than one year:
Compensated absences 960,052 291,881 1,251,933 Total OPEB liability 2,731,673 853,989 3,585,662 Net pension liability 8,735,828 2,731,523 11,467,351
Service concession arrangement 406,945 - 406,945
Long-term debt 80,858,556 27,993,744 108,852,300
Total Liabilities 112,075,167 38,782,245 150,857,412
DEFERRED INFLOWS OF RESOURCES
Deferred service concession arrangement 298,422 - 298,422
Deferred OPEB related inflows 415,819 130,006 545,825 Deferred pension related inflows 3,659,994 1,144,410 4,804,404
Total Deferred Inflows of Resources 4,374,235 1,274,416 5,648,651
NET POSITIONNet investment in capital assets 109,746,340 94,997,863 204,744,203
Restricted for:Police and municipal court 447,481 - 447,481
PEG capital fees 967,885 - 967,885 Tourism development 1,646,618 - 1,646,618 Economic development 26,077,746 - 26,077,746 Parks and tree mitigation 969,581 - 969,581 Debt service 1,550,080 - 1,550,080
Scholarships and other purposes 1,086,297 - 1,086,297 Construction - 5,408,320 5,408,320
Unrestricted 11,055,015 42,791,680 53,846,695
Total Net Position 153,547,043$ 143,197,863$ 296,744,906$
Primary Government
CITY OF SCHERTZ, TEXAS
STATEMENT OF NET POSITION
SEPTEMBER 30, 2022
14
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 36,068,486 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
SalesFranchise fees
Hotel/motel
Mixed drink
Investment earnings
MiscellaneousTransfers
Total General Revenues and Transfers
Change in Net Position
Net Position - Beginning
Net Position - Ending
Program Revenues
CITY OF SCHERTZ, TEXAS
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2022
The accompanying notes are an integral part
of these financial statements.15
Governmental Business-Type
Activities Activities Total
3,086,775)$( -$ 3,086,775)$(
15,016,218)( - 15,016,218)(
759,091)( - 759,091)(
2,891,251)( - 2,891,251)(
849,862)( - 849,862)(
4,455,947)( - 4,455,947)( 2,490,474)( - 2,490,474)(
29,549,618)( - 29,549,618)(
- 8,987,537 8,987,537 - 1,186,409 1,186,409
- 10,173,946 10,173,946
29,549,618)( 10,173,946 19,375,672)(
22,495,628 - 22,495,628
18,075,733 - 18,075,733 2,574,041 - 2,574,041
804,132 - 804,132
83,391 - 83,391
709,898 314,546 1,024,444
1,138,775 675,739 1,814,514 316,216)( 316,216 -
45,565,382 1,306,501 46,871,883
16,015,764 11,480,447 27,496,211
137,531,279 131,717,416 269,248,695
153,547,043$ 143,197,863$ 296,744,906$
Primary Government
Net (Expense) Revenue and Changes in Net Position
16
General Capital Projects Debt Service
Fund Fund Fund
ASSETS
Cash and cash equivalents 12,128,331$ 42,594,424$ 1,864,408$
Investments 2,404,552 - -
Receivables (net of allowances)
Taxes 3,174,973 - 172,341
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 42,594,424 2,036,749
LIABILITIES
Accounts payable 1,752,626 906,624 -
Accrued salaries and benefits 431,088 - -
Retainage payable - 281,284 -
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 1,187,908 -
DEFERRED INFLOWS OF RESOURCESUnavailable revenues 2,030,907 - 172,340
Total Deferred Inflows of Resources 2,030,907 - 172,340
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 - 35,863,370 -
Debt service - - 1,864,409
Tourism development - - -
Parks and tree mitigation - - -
Historical Committee and library - - -
Economic development - - -
Animal control 42,825 - -
Scholarships 134,632 - -
Committed for:Capital Projects - 5,543,146 -
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 41,406,516 1,864,409
Total Liabilities, Deferred Inflows of Resources,
and Fund Balances 21,536,688$ 42,594,424$ 2,036,749$
CITY OF SCHERTZ, TEXAS
BALANCE SHEET
GOVERNMENTAL FUNDS
SEPTEMBER 30, 2022
The accompanying notes are an integral part
of these financial statements.17
Economic American Nonmajor Total
Development Rescue Plan Act Governmental Governmental
Corporation Fund Funds Funds
22,721,336$ 7,816,119$ 5,497,021$ 92,621,639$
2,227,105 - - 4,631,657
1,101,960 - - 4,449,274
7,949 - 77,949 2,214,350
- - - 648,630
- - - 154,096
990 - - 29,080
- - - 869,564
26,059,340 7,816,119 5,574,970 105,618,290
16,212 62,041 101,917 2,839,420
- - - 431,088
- 6,893 56,187 344,364
- - - 105,891
- - - 83,060
- - 648,630 664,769 - 7,712,567 - 7,762,645
16,212 7,781,501 806,734 12,231,237
- - - 2,203,247
- - - 2,203,247
- - - 154,096
- - - 28,090
- - 144,756 447,481
- - - 812,283
- - - 967,885
- - 2,559,354 38,422,724
- - - 1,864,409
- - 1,646,618 1,646,618
- - 969,581 969,581
- - 96,557 96,557
26,043,128 34,618 - 26,077,746
- - - 42,825
- - - 134,632
- - - 5,543,146
- - - 1,021,594
- - - 909,889
- - - 446,341
- - 648,630)( 11,597,909
26,043,128 34,618 4,768,236 91,183,806
26,059,340$ 7,816,119$ 5,574,970$ 105,618,290$
18
THIS PAGE LEFT BLANK INTENTIONALLY
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.159,972,447
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.82,514,293)(
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.486,669)(
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 5,501,635)(
Deferred loss 506,739
Receivables from grants,property taxes and fines and fees are not available
soon enough to pay for the current period's expenditures and are,therefore,
deferred in the fund financial statements.2,203,247
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 8,735,828)(
Deferred outflows related to pensions 3,160,127
Deferred inflows related to pensions 3,659,994)(
Total OPEB liability 2,808,088)(
Deferred outflows related to OPEB 643,003
Deferred inflows related to OPEB 415,819)(
Net Position of Governmental Activities 153,547,043$
CITY OF SCHERTZ, TEXAS
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
SEPTEMBER 30, 2022
The accompanying notes are an integral part
of these financial statements.19
General Capital Projects Debt Service
Fund Fund FundREVENUES
Taxes 29,892,435$ -$ 7,182,900$
Permits and fees 2,204,543 - -
Service fees 2,134,517 - -
Fines and fees 657,480 - - Intergovernmental 1,730,576 - -
Investment earnings 90,883 196,624 143,428
Miscellaneous 613,268 450,000 75,000
Total Revenues 37,323,702 646,624 7,401,328
EXPENDITURES
Current:
General government 6,051,339 - -
Public safety 18,243,849 - - Public environment 1,766,558 - -
Parks and recreation 2,567,764 - -
Cultural 1,144,684 - -
Administration 3,991,262 - -
Capital outlay 646,563 9,544,074 - Debt service:
Principal - - 4,805,000
Interest and fiscal charges - - 1,779,157
Bond issue costs - 468,285 90,626
Total Expenditures 34,412,019 10,012,359 6,674,783
Excess (Deficiency) of Revenues
Over Expenditures 2,911,683 9,365,735)( 726,545
OTHER FINANCING SOURCES (USES)
Issuance of debt - 31,540,000 - Issuance of refunding debt - - 4,070,000
Premium on issuance of debt - 2,778,912 421,632
Payment to refunding escrow agent - - 4,443,881)(
Transfers in 37,853 3,285,112 2,737 Transfers out 2,361,204)( 2,737)( -
Total Other Financing Sources (Uses)2,323,351)( 37,601,287 50,488
NET CHANGE IN FUND BALANCE 588,332 28,235,552 777,033
FUND BALANCES - BEGINNING 16,478,567 13,170,964 1,087,376
FUND BALANCES - ENDING 17,066,899$ 41,406,516$ 1,864,409$
CITY OF SCHERTZ, TEXAS
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
The accompanying notes are an integral part
of these financial statements.20
Economic American Nonmajor Total
Development Rescue Plan Act Governmental Governmental
Corporation Fund Funds Funds
6,025,703$ -$ 804,132$ 43,905,170$
- - 136,950 2,341,493
- - 819,190 2,953,707
- - 97,078 754,558 - 2,422,438 94,509 4,247,523
201,279 34,375 43,309 709,898
- - 507 1,138,775
6,226,982 2,456,813 1,995,675 56,051,124
218,302 - 245,991 6,515,632
- 838,268 16,256 19,098,373 - - - 1,766,558
- - 92,150 2,659,914
- - 14,340 1,159,024
531,783 - 74,443 4,597,488
- 1,584,170 1,321,933 13,096,740
- - - 4,805,000
- - - 1,779,157
- - - 558,911
750,085 2,422,438 1,765,113 56,036,797
5,476,897 34,375 230,562 14,327
- - - 31,540,000 - - - 4,070,000
- - - 3,200,544
- - - 4,443,881)(
- - 13,863 3,339,565 1,240,000)( - 51,840)( 3,655,781)(
1,240,000)( - 37,977)( 34,050,447
4,236,897 34,375 192,585 34,064,774
21,806,231 243 4,575,651 57,119,032
26,043,128$ 34,618$ 4,768,236$ 91,183,806$
21
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Net Changes in Fund Balances - Governmental Funds 34,064,774$
Amounts reported for governmental activities in the statement of activities aredifferent 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$
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
The accompanying notes are an integral part
of these financial statements.22
Governmental
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 -
CITY OF SCHERTZ, TEXAS
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
SEPTEMBER 30, 2022
Business-Type
Activities
Enterprise Funds
The accompanying notes are an integral part
of these financial statements.23
GovernmentalActivities
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$ -$
CITY OF SCHERTZ, TEXAS
Business-Type
Activities Enterprise Funds
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
SEPTEMBER 30, 2022
24
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Governmental
Activities
Total Internal
Water and Schertz Enterprise Service
Sewer System 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$ -$
Business-Type
Activities
Enterprise Funds
CITY OF SCHERTZ, TEXAS
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
The accompanying notes are an integral part
of these financial statements.25
Governmental
Activities
Water and Schertz Total Internal
Sewer System EMS Enterprise Service Fund
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers and users 30,702,467$ 8,911,870$ 39,614,337$ -$
Cash received from interfund services - - - 4,292,996
Cash paid to employees for services 2,637,637)( 6,037,877)( 8,675,514)( 4,292,996)(
Cash paid to suppliers for goods and services 22,047,319)( 2,142,119)( 24,189,438)( -
Net Cash Provided By Operating Activities 6,017,511 731,874 6,749,385 -
CASH FLOWS FROM NON-CAPITAL FINANCING
ACTIVITIES
Transfers from other funds 308,835 7,381 316,216 -
Net Cash Used in Non-Capital Financing Activities 308,835 7,381 316,216 -
CASH FLOWS FROM CAPITAL & RELATED FINANCING
ACTIVITIES
Acquisition and construction of capital assets 7,350,994)( 808,166)( 8,159,160)( -
Capital contributions - impact fees 1,203,925 - 1,203,925 -
Proceeds from issuance of debt 16,860,000 - 16,860,000 -
Premium from issuance of debt 1,572,881 - 1,572,881 -
Interest paid on long-term debt 902,571)( 3,880)( 906,451)( -
Principal paid on long-term debt 3,300,000)( 262,436)( 3,562,436)( -
Net Cash Used in Capital and Related
Financing Activities 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 15,056,539 328,168)( 14,728,371 -
Cash and cash equivalents at beginning of year:
Cash and cash equivalents 8,197,023 1,259,823 9,456,846 -
Restricted cash and cash equivalents 20,271,954 - 20,271,954 -
28,468,977 1,259,823 29,728,800 -
Cash and cash equivalents at end of year
Cash and cash equivalents 27,484,127 931,655 28,415,782 -
Restricted cash and cash equivalents 16,041,389 - 16,041,389 -
43,525,516$ 931,655$ 44,457,171$ -$
Enterprise Funds
CITY OF SCHERTZ, TEXAS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
Business-Type
Activities
The accompanying notes are an integral part
of these financial statements.26
Governmental
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 7,962 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$ -$
Activities
Enterprise Funds
FOR THE YEAR ENDED SEPTEMBER 30, 2022
Business-Type
CITY OF SCHERTZ, TEXAS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
27
28
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.
29
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific
function or segment. Program revenues include 1) charges of customers or applicants who purchase, use, or
directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants
and contributions that are restricted to meeting the operational or capital requirements of a particular
function or segment. Taxes and other items not properly included among program revenues are reported
instead as general revenues.
Separate financial statements are provided for governmental funds and proprietary funds. Major individual
governmental funds and major individual enterprise funds are reported as separate columns in the fund
financial statements.
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded
when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash
flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar
items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been
met.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collectible within the
current period or soon thereafter to pay liabilities of the current period. For this purpose, the City considers
revenues to be available if they are collected within 60 days of the end of the current fiscal period.
Nonexchange revenues that are measurable but not available are recorded as unavailable revenue (a
deferred inflow of resources). These revenues are generally property taxes and warrants outstanding.
Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt
service expenditures, as well as expenditures related to compensated absences and claims and judgments,
are recorded only when payment is due.
Exchange revenues (payments for services) received in advance of the service being provided are recorded
as unearned revenue.
The City reports the following major governmental funds:
The General Fund is the City's primary operating fund which accounts for all financial resources of the
general government, except those required to be accounted for in another fund.
The Capital Projects Fund accounts for the acquisition and construction of major capital facilities
financed from bond proceeds, grants, and transfers from other funds.
The Debt Service Fund accounts for the resources accumulated and payments made for principal and
interest on long-term general obligation debt of governmental funds.
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.
30
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 Payables
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.
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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 (Years)
Buildings and improvements 10 - 50
Machinery, equipment, and vehicles 2 - 20
Infrastructure 15 - 30
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J. Deferred Inflows/Outflows of Resources
In addition to assets, the statement of financial position and/or balance sheet will sometimes report a
separate section for deferred outflows of resources. This separate financial statement element, deferred
outflows of resources, represents a consumption of net 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 over the
estimated average remaining lives of all members determined as of the measurement date.
K. Compensated Absences
It is the City's policy to permit employees to accumulate earned but unused vacation and compensatory time
benefits. There is no liability for unpaid accumulated sick leave since the City does not have a policy to pay
any amounts when employees separate from service with the City. All vacation and compensatory time pay
is accrued when incurred in the government-wide and proprietary fund financial statements. A liability for
these amounts is reported in governmental funds only if they have matured, for example, as a result of
employee resignations and retirements. The general fund, water and sewer fund and the EMS fund are used
to liquidate compensated absences.
L. Pensions
The net pension liability, deferred inflows, and outflows of resources related to pensions, and pension
expense, information about the fiduciary net position of the Texas Municipal Retirement System (TMRS),
and additions to and deductions from TMRS’s fiduciary net position have been determined on the same basis
as they are reported by TMRS. For this purpose, benefit payments (including refunds of employee
contributions) are recognized when due and payable in accordance with the benefit terms. Investments are
reported at fair value.
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M. Other Post-Employment Benefits (OPEB)
Supplemental Death Benefits Fund. For purposes of measuring the total Texas Municipal Retirement
System Supplemental Death Benefit Fund (TMRS SDBF) OPEB liability, related deferred outflows and
inflows of resources, and expense, City specific information about its total TMRS SDBF liability and
additions to/deductions from the City’s total TMRS SDBF liability have been determined on the same basis
as they are reported by TMRS. The TMRS SDBF expense and deferred (inflows)/outflows of resources
related to TMRS SDBF, primarily result from changes in the components of the total TMRS SDBF liability.
Most changes in the total TMRS SDBF liability will be included in TMRS SDBF expense in the period of the
change. For example, changes in the total TMRS SDBF liability resulting from current-period service cost,
interest on the TOL, and changes of benefit terms are required to be included in TMRS SDBF expense
immediately. Changes in the total TMRS SDBF liability that have not been included in TMRS SDBF expense
are required to be reported as deferred outflows of resources or deferred inflows of resources related to
TMRS SDBF.
Retiree Health Insurance. For purposes of measuring the total OPEB liability, OPEB related deferred
outflows and inflows of resources, and OPEB expense, benefit payments and refunds are recognized when
due and payable in accordance with the benefit terms. Contributions are not required but are measured as
payments by the City for benefits due and payable that are not reimbursed by plan assets. Information
regarding the City’s total OPEB liability is obtained from a report prepared by a consulting actuary, Gabriel
Roeder Smith & Company.
N. Long-Term Obligations
In the government-wide financial statements, and proprietary fund types in the fund financial statements,
long-term debt and other long-term obligations are reported as liabilities in the applicable governmental
activities, business-type activities, or proprietary fund type statement of net position. Bond premiums,
discounts, and losses on defeasance are amortized over the life of the bonds using the straight-line method.
Bonds payable are reported net of the applicable bond premium or discount. Losses on defeasance are
reported as deferred outflows of resources. Bond issuance costs are expensed as incurred.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well
as bond issuance costs, during the current period. The face amount of debt issued is reported as other
financing sources. Premiums received on debt issuances are reported as other financing sources while
discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld
from the actual debt proceeds received, are reported as debt service expenditures.
O. Fund Balance
Fund balances in governmental funds are classified as follows:
Nonspendable - Represents amounts that cannot be spent because they are either not in spendable form
(such as inventory or prepaid items) or legally required to remain intact.
Restricted - Represents amounts that are constrained by external parties, constitutional provisions or
enabling legislation.
Committed - Represents amounts that can only be used for a specific purpose because of a formal action
by the government’s highest level of decision-making authority: an ordinance adopted by City Council
prior to the end of the fiscal year. Once adopted, the limitation imposed by the ordinance remains in
place until a similar action is taken (the adoption of another ordinance) to remove or revise the
limitation.
Assigned - Represents amounts which the City intends to use for a specific purpose but do not meet the
criteria of restricted or committed. The City Council may make assignments through formal
documentation in the minutes. The City Council authorized (by way of policy) the City Manager to also
make assignments. The City Manager’s assignments do not require formal action; however, the City
Manager has not assigned any funds at this time.
Unassigned - Represents the residual balance that may be spent on any other purpose of the City. Only
the General Fund reports positive unassigned fund balances; if another fund were to have unassigned
fund balance, it would be in the event of a deficit.
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When an expenditure is incurred for a purpose in which multiple classifications are available, the City considers restricted balances spent first, committed second, and assigned third.
P. Net Position
Net position represents the difference between assets plus deferred outflows of resources less liabilities and
deferred inflows of resources. Net investment in capital assets consists of capital assets, net of accumulated
depreciation, reduced by the outstanding balances of any borrowing used for the acquisition, construction
or improvements of those assets, and adding back unspent proceeds. Net position is reported as restricted
when there are limitations imposed by creditors, grantors, or laws or regulations of other governments.
Q. Estimates
The preparation of financial statements, in conformity with generally accepted accounting principles,
requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosures of contingent liabilities at the date of the financial statements and the reported
amounts of revenue and expenses during the reporting period. Actual amounts could differ from those
estimates.
R. Deficit Equity
At September 30, 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.
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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 $100 of assessed
value.
However, the City may not adopt a tax rate that exceeds the tax rate calculated in accordance with the
Texas Property Tax Code without holding a public hearing. The Property Tax Code subjects an increase in
the effective tax rate to a referendum election, if petitioned by registered voters, when the effective tax
rate increase is more than 3.5% of the previous year’s effective tax rate.
Property taxes are recorded as receivables and unearned revenues at the time the taxes are assessed. In
governmental funds, revenues are recognized as the related ad valorem taxes are collected. Additional
amounts estimated to be collectible in the time to be a resource for payment of obligations incurred during
the fiscal year and therefore susceptible to accrual in accordance with generally accepted accounting
principles have been recognized as revenue. In the government-wide financial statements, the entire levy
is recognized as revenue, net of estimated uncollectible amounts (if any), at the levy date.
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C. Receivables
Receivables as September 30, 2022 for the government’s individual major funds and nonmajor funds in the
aggregate, including the applicable allowances for uncollectible accounts, are as follows:
General Economic Debt Nonmajor Water and SchertzFundDevelopmentServiceFundsSewer Fund EMS
Receivables:
Property taxes 385,410$ -$ 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$
Governmental Activities Business-type Activities
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.
Governmental Water/
Activities Sewer EMS Totals
Deferred outflows:
Charge on refunding 506,739$ 6,756$ -$ 513,495$
Related to pensions 3,160,127 304,481 683,629 4,148,237
Related to OPEB - SDBF 223,514 21,504 48,346 293,364
Related to OPEB - Retiree
Health Plan 419,489 40,418 90,748 550,655
Total deferred outflow 4,309,869$ 373,159$ 822,723$ 5,505,751$
Deferred inflows:
Service concession arrangement 298,422$ -$ -$ 298,422
Related to pensions 3,659,994 352,643 791,766 4,804,403
Related to OPEB - SDBF 67,267 6,472 14,550 88,289
Related to OPEB - Retiree
Health plan 348,552 33,583 75,402 457,537
Total deferred inflow 4,374,235$ 392,698$ 881,718$ 5,648,651$
Business-type Activities
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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 Purpose
General Nonmajor governmental 13,863$ Suplement funds sources
General Capital Projects 2,045,112 Funding for various capital projects
General Water and Sewer System 302,229 Suplement funds sources
Nonmajor governmental General 37,853 Close out completed grant into local funds
Nonmajor governmental Water and Sewer System 6,606 Close out completed grant into local funds
Nonmajor governmental EMS 7,381 Close out completed grant into local funds
EDC Capital Projects 1,240,000 Funding for various capital projects
Capital Projects Debt Service 2,737 Suplement funds sources
F. Capital Assets
Capital asset activity for the year ended September 30, 2022 was as follows:
Beginning Reclassifications/Ending
Balance Additions Retirements Balance
Governmental activities:
Capital assets not being depreciated:
Land 8,310,986$ 572,441$ -$ 8,883,427$
Construction in progress 26,695,151 9,056,294 8,067,015)( 27,684,430
Total capital assets not
being depreciated 35,006,137 9,628,735 8,067,015)( 36,567,857
Capital assets being depreciated:
Buildings and improvements 44,588,777 45,787 8,067,015 52,701,579
Machinery, equipment, and vehicles 14,833,547 817,998 178,864)( 15,472,681
Street and infrastructure 129,206,285 6,987,788 - 136,194,073
Total assets being depreciated 188,628,609 7,851,573 7,888,151 204,368,333
Less accumulated depreciation for:
Buildings and improvements 18,448,517)( 1,612,535)( - 20,061,052)(
Machinery, equipment, and vehicles 8,165,845)( 1,241,549)( 119,889 9,287,505)(
Street and infrastructure 47,449,785)( 4,165,401)( - 51,615,186)(
Total accumulated depreciation 74,064,147)( 7,019,485)( 119,889 80,963,743)(
Total capital assets being
depreciated, net 114,564,462 832,088 8,008,040 123,404,590
Governmental activities capital
assets, net 149,570,599$ 10,460,823$ 58,975)$( 159,972,447$
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Beginning Reclassifications/Ending
Balance Additions Retirements Balance
Business-type activities:
Capital assets, not being depreciated:
Land 1,844,488$ 570,529$ -$ 2,415,017$
Water rights 70,245 - - 70,245
Construction in progress 19,942,794 6,662,221 4,943,439)( 21,661,576
Total capital assets, not being
depreciated 21,857,527 7,232,750 4,943,439)( 24,146,838
Capital assets being depreciated:
Buildings and improvements 3,609,126 94,500 - 3,703,626
Machinery, equipment, and vehicles 6,214,966 823,427 214,824)( 6,823,569
Infrastructure 105,832,113 9,883,471 - 115,715,584
Total assets being
depreciated 115,656,205 10,801,398 214,824)( 126,242,779
Less accumulated depreciation for:
Buildings and improvements 1,121,106)( 158,786)( - 1,279,892)(
Machinery, equipment, and vehicles 5,543,597)( 661,756)( 214,824 5,990,529)(
Infrastructure 32,105,504)( 2,141,470)( - 34,246,974)(
Total accumulated depreciation 38,770,207)( 2,962,012)( 214,824 41,517,395)(
Total capital assets being
depreciated, net 76,885,998 7,839,386 - 84,725,384
Business-type activities capital
assets, net 98,743,525$ 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 for the year exceeded $50.4 million and
sales tax revenue was $18.5 million.
Additionally, certain obligations that were marketed as private placements have been separately identified;
however, the terms of these obligations are not significantly different than other obligations and do not have
substantive acceleration clauses. Should the City default on these bonds, any registered owner of the
obligations is entitled to seek a writ of mandamus from a court of proper jurisdiction requiring the City to
make payment.
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Changes in long-term debt for the year ending September 30, 2022 are as follows:
Beginning Refunded/Ending Amount Due
Balance Issued Retired Balance Within One Year
Governmental activities:
General Obligation Bonds 33,770,000$ 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 $6,779, which was expensed in
the current year.
Prior Year Refunding of Debt
The City defeased certain outstanding bonds by placing proceeds of new bonds in irrevocable trusts to
provide for all future debt service payments. Accordingly, the respective trust accounts and liability for the
defeased bonds are not included in the City’s financial statements. As of September 30, 2022, the City does
not have bonds considered defeased and outstanding.
40
A summary of the terms of long-term debt outstanding at September 30, 2022, is as follows:
Issue
Amount Maturity Rate Balance
Governmental Activities
General Obligation Bonds
2014 Series, Refunding 8,450,000 2030 2.0% - 4.0%7,050,000
2015 Series, Refunding 4,185,000 2031 2.0% - 3.25%1,140,000
2016 Series 5,880,000 2036 2.0% - 4.0%4,350,000
2017 Series 3,935,000 2037 2.0% - 4.0%3,170,000
2018 Series, Refunding 5,830,000 2033 3.125% - 5%4,440,000
2020 Series, Refunding 7,555,000 2036 1.5% - 4%6,620,000
2021 Series, Refunding 4,070,000 2033 2% - 4%4,070,000
2022 Series 18,535,000 2042 4% - 5%18,535,000
Private Placement obligations
2007 Series GO 6,000,000 2027 4.07%1,925,000
2018 Series GO Refunding 6,035,000 2028 2.12%3,770,000
Certificates of Obligation
2016 Series A 2,375,000 2036 2.0% - 4.0%1,300,000
2016 Series B 1,475,000 2036 3.0% - 3.75%1,130,000
2017 Series 4,935,000 2037 3.0% - 3.75%3,520,000
2018 Series 4,845,000 2038 3.0% - 5.0%3,935,000
2019 Series 4,015,000 2039 2.5% - 5%3,245,000
2022 Series 4,740,000 2042 2% - 5%4,740,000
2022 Series A 8,265,000 2042 4% - 5%8,265,000
Total Governmental Long-Term Obligations 81,205,000$
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$
41
Annual future debt service requirements of bonded debt as of September 30, 2022, are as follows:
Governmental activities:
Year Ended
September 30,Principal Interest Total Principal Interest Total
2023 3,330,000$ 1,786,738$ 5,116,738$ 1,570,000$ 963,069$ 2,533,069$
2024 3,415,000 1,651,112 5,066,112 1,455,000 899,619 2,354,619
2025 2,845,000 1,523,238 4,368,238 1,375,000 838,219 2,213,219
2026 2,970,000 1,404,163 4,374,163 1,310,000 780,719 2,090,719
2027 3,090,000 1,280,663 4,370,663 1,195,000 727,356 1,922,356
2028-2032 17,490,000 4,442,890 21,932,890 6,735,000 2,839,534 9,574,534
2033-2037 9,985,000 2,044,744 12,029,744 7,910,000 1,467,100 9,377,100
2038-2042 6,250,000 645,000 6,895,000 4,585,000 370,988 4,955,988
Total 49,375,000$ 14,778,547$ 64,153,547$ 26,135,000$ 8,886,603$ 35,021,603$
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$
Certificates of Obligation
Private Placement Debt
General Obligation Bonds
General Obligation Bonds
Business-type activities:
Year Ended
September 30,Principal Interest Total Principal Interest Total
2023 535,000$ 132,050$ 667,050$ 840,000$ 893,738$ 1,733,738$
2024 560,000 106,150 666,150 855,000 852,713 1,707,713
2025 595,000 78,825 673,825 890,000 809,813 1,699,813
2026 615,000 50,200 665,200 945,000 765,438 1,710,438
2027 175,000 32,150 207,150 985,000 718,763 1,703,763
2028-2032 980,000 76,125 1,056,125 5,665,000 2,850,288 8,515,288
2033-2037 170,000 1,700 171,700 6,910,000 1,609,481 8,519,481
2038-2042 - - - 5,755,000 461,931 6,216,931
Total 3,630,000$ 477,200$ 4,107,200$ 22,845,000$ 8,962,163$ 31,807,163$
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 635,000$ 24,833$ 659,833$
Certificates of Obligation
General Obligation Bonds
Private Placement Debt
General Obligation Bonds
42
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:
Year Ended
September 30,Principal Interest Total Principal Interest Total
2023 27,307$ 819$ 28,126$ 81,921$ 2,458$ 84,379$
2024 27,307 819 28,126 81,921 2,458 84,379
2025 27,307 819 28,126 81,921 2,458 84,379
2026 27,307 819 28,126 81,922 2,458 84,380
Total 109,228$ 3,276$ 112,504$ 327,685$ 9,832$ 337,517$
Governmental Activities Business-type Activities
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.
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$
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$
Business-type Activities
Business-type Activities
43
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.
44
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 Target Allocation
Long-Term Expected
Real Rate of Return
(Arithmetic)
Core Fixed Income 10.00%5.30%
Non-Core Fixed Income 20.00%1.25%
Global Public Equity 30.00%4.14%
Real Estate 10.00%3.85%
Real Return 10.00%4.00%
Absolute Return 10.00%3.48%
Private Equity 10.00%7.75%
Total 100.0%
45
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:
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a)(b)(a)-(b)
Balance at 12/31/2020 84,773,362$ 69,798,222$ 14,975,140$
Changes for the year:
Service cost 4,211,795 - 4,211,795
Interest 5,766,957 - 5,766,957
Difference between expected
and actual experience 1,060,260 - 1,060,260
Change in assumptions - - -
Contributions - employer - 3,831,461 3,831,461)(
Contributions - employee - 1,643,398 1,643,398)(
Net investment income - 9,113,755 9,113,755)(
Benefit payments, including refunds 2,885,733)( 2,885,733)( -
of employee contributions
Administrative expense - 42,101)( 42,101
Other changes - 288 288)(
Net changes 8,153,279 11,661,068 3,507,789)(
Balance at 12/31/2021 92,926,641$ 81,459,290$ 11,467,351$
Increase (Decease)
The following presents the net pension liability of the City, calculated using the discount rate of 6.75%, as
well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1-
percentage point lower (5.75%) or 1-percentage point higher (7.75%) than the current rate:
1% Decrease in 1% Increase in
Discount Rate Discount Rate Discount Rate
(5.75%)(6.75%)(7.75%)
Net pension liability 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 $2,464,440. Also, as of September 30,
2022, the City reported deferred outflows of resources and deferred inflows of resources related to pensions
from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual
economic experience 921,703$ 139,864$
Changes in actuarial assumptions 111,275 -
Difference between projected and actual
investment earnings - 4,664,539
Contributions subsequent to the measurement date 3,115,259 -
Total 4,148,237$ 4,804,403$
46
$3,115,259 reported as deferred outflows of resources related to pensions resulting from contributions
subsequent to the measurement date will be recognized as a reduction of the net pension liability for the
year ending September 30, 2023. Other amounts reported as deferred outflows and inflows of resources
related to pensions will be recognized in pension expense as follows:
For the Year
Ended September 30,
2023 620,349)$(
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.
47
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 31,2021
Inflation rate 2.50% per annum
Discount rate 1.84%
Actuarial cost method Entry Age Normal Method
Projected salary increases 3.50% to 11.5% including inflation
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 projeted on a fully generational bases
with scale UMP.
Mortality Rates - Disabled Retirees 2019 Municipal Retirees of Texas Mortality Tables
with a 4 year set forward for males and a 3 year set-
forward for females.In addition,a 3.5%and 3%
minimum mortality rate will be applied to reflect the
impairment for younger members who become
disabled for males and females,respectively.The
rates are projected on a fully generational basis 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 1% Increase in
Discount Rate Discount Rate Discount Rate
(0.84%)(1.84%)(2.84%)
Total SDB OPEB Liability 1,470,379$ 1,153,668$ 920,379$
48
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 -
Total 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.
49
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$
50
For the year ended September 30, 2022, the City recognized OPEB expense of $219,176. Also, as of
September 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources
related to OPEB from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual economic experience 132,787$ 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 Ventures
Schertz/Seguin Local Government Corporation
The Schertz/Seguin Local Government Corporation is a public, nonprofit corporation organized to aid, assist,
and act on behalf of the cities of Schertz and Seguin in acquiring, constructing, maintaining, and operating a
water utility system. The participating governments have an ongoing financial responsibility to fund the
operation of the corporation through either purchase of services or by subsidizing the operations.
Payments to the corporation are generally for the purchase of water treatment and for covering the
Corporation’s debt service requirements; they are reflected as “operating expenses” in the water and sewer
fund and totaled $3,913,110 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.
51
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.
52
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 $100 million in taxable property).
The City and Corporation’s outstanding incentive agreement grants are as follows:
FY 2020-21 Amt.Est. Remaining Grant
SEDC - LGC 501.101 -$ 555,554$
SEDC - LGC 501.103 - 2,940,000
Service Concession Arrangement
The City entered into an agreement with Young Men’s Christian Association of Greater San Antonio
(“YMCA”), under which YMCA will operate and collect user fees from the Natatorium and Outdoor Pools for
the next 20 years. YMCA will pay the city $100,000 annually over the course of the arrangement to cover
costs of debt service related to the facility; the present value of these installment payments is estimated to
be $782,371. The City will approve the rates and services that YMCA will provide, however, YMCA will retain
all revenues earned from the operation of the Natatorium. The YMCA will remit all revenues received from
operating the Outdoor Pools to the City with the exception of revenues earned from YMCA specific programs.
As of September 30, 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 $406,945 for the
present value of maintenance costs estimated over the life of the Service Concession arrangement. The
balance of these two amounts is recorded as a deferred inflow of resources.
Litigation
The City is the subject of various claims and litigation that have arisen in the course of its operations.
Management is of the opinion that the City’s liability in these cases, if decided adversely to the City, will not
have a material effect on the City’s financial position.
Cibolo Creek Municipal Authority
The Cibolo Creek Municipal Authority (CCMA) provides sewage treatment for the area in and around the City.
In Fiscal year 2014, the City entered into an agreement with CCMA to construct a sewage treatment facility
in the southern portion of the City to primarily serve citizens of the City but also neighboring Cities and
future development. Because the City would be the primary customer at this time, the agreement stipulates
that the City will pay all future debt service on the bonds issued by CCMA to finance the project. The City is
the sole member at this time, so it is responsible for 100% of the project costs. Should other members join,
the City’s share of the costs would be reduced.
53
Future debt service on the CCMA bonds are as follows:
Year Ended
September 30,Principal Interest Total
2023 170,000$ 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 7,701,279
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.
54
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.
REQUIRED
SUPPLEMENTARY INFORMATION
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 9,782)(
Total Revenues 35,156,577 36,179,377 37,323,702 1,144,325
EXPENDITURES
General government:
Council 129,252 129,252 100,694 28,558
City manager 1,333,588 1,397,729 1,341,557 56,172
Municipal court 388,838 404,538 372,395 32,143
311 customer relations 117,235 124,385 118,400 5,985
Planning & zoning 326,153 677,715 230,653 447,062
Legal 140,000 140,000 110,717 29,283
City secretary 216,259 224,159 221,127 3,032
Nondepartmental 1,874,372 2,099,804 1,699,984 399,820
Public affairs 642,486 681,986 632,794 49,192
Engineering 946,519 991,034 904,710 86,324
Citizens assistance 342,666 312,666 282,518 30,148
Special events 24,000 24,000 29,568 5,568)(
Total General Government 6,481,368 7,207,268 6,045,117 1,162,151
Public safety:
Police department 10,672,966 11,015,766 10,592,956 422,810
Fire department 6,614,057 7,217,866 7,029,409 188,457
Inspection 1,088,400 1,045,000 1,011,446 33,554
Total Public Safety 18,375,423 19,278,632 18,633,811 644,821
Public environment:
Streets 1,926,970 2,002,970 1,926,603 76,367
Total Public Environment 1,926,970 2,002,970 1,926,603 76,367
Parks and recreation:
Parks 1,661,936 1,823,731 1,593,522 230,209
Pools 569,878 569,878 589,272 19,394)(
Community/Civic Center 384,945 414,245 395,000 19,245
Total Parks and Recreation 2,616,759 2,807,854 2,577,794 230,060
Cultural:
Library 1,161,611 1,189,773 1,144,684 45,089
Total Cultural 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
55
Variance With
Final Budget
Original Final Actual Positive
Budget 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)( 3,085,916)( -
Total Administration 4,442,722 4,669,025 4,084,010 585,015
Total Expenditures 35,004,853 37,155,522 34,412,019 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$
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
GENERAL FUND
BUDGET AND ACTUAL
FOR THE YEAR ENDED SEPTEMBER 30, 2022
56
Variance With
Final Budget
Original Final Actual Positive
Budget Budget Amounts (Negative)
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 6,226,982 677,982
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 23,054,524$ 23,054,524$ 26,043,128$ 2,988,604$
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
57
58
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.
Measurement Date December 31,2021 2020 2019
Total pension liabilityService 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)( 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 84,773,362 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 1,200)( 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)81,459,290 69,798,222 62,639,563
Net pension liability = (a)-(b)11,467,351$ 14,975,140$ 15,572,214$
Fiduciary Net Position as a Percentage ofTotal Pension Liability 87.66%82.34%80.09%
Covered Payroll 23,477,118$ 21,063,794$ 19,722,641$
Net Pension Liability as a Percentage ofCovered Payroll 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.
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
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)( 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%71.76%69.85%72.49%
18,896,766$ 17,603,310$ 16,478,620$ 15,648,114$ 15,389,154$
104.19%83.14%103.32%106.21%89.78%
60
Fiscal Year Ended September 30,2022 2021 2020
Actuarially determined contribution 4,245,872$ 3,700,948$ 3,235,479$
Contributions in relation to the actuarially
determined contribution 4,245,872 3,700,948 3,235,479
Contribution deficiency (excess)- - -
Covered payroll 26,163,046 22,879,083 20,401,412
Contributions as a percentage of covered payroll 16.23%16.18%15.86%
Valuation Date:
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
Mortality Post-retirement:2019 Municpal Retirees of Texas
Mortality Tables.The rates are projected on a fully
generational basis with scale UMP.Pre-retirement:
PUB(10)mortality tables,with the Public Safety table
used for males and the General Employee table used
for females.The rates are projected on a fully
generational basis with scale UMP.
CITY OF SCHERTZ, TEXAS
SCHEDULE OF EMPLOYER CONTRIBUTIONS
TEXAS MUNICIPAL RETIREMENT SYSTEM
FOR THE YEAR ENDED SEPTEMBER 30, 2022
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.
Actuarially determined contribution rates are calculated as of December 31st and become effective on
January 1st, 13 months and a day later.
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.
NOTES TO SCHEDULE OF CONTRIBUTIONS
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
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)1,153,668$ 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%
Valuation Date:
Methods and Assumptions Used to Determine Contribution Rates:
Inflation 2.50%
Salary increases
Discount rate
Administrative expenses
Mortality rates - service retirees
Mortality rates - disabled retirees
Other information
Changes in actuarial assumptions reflect changes in the discount rate
and,in 2019,changes in assumptions adopted from review of plan
provisions.
CITY OF SCHERTZ, TEXAS
SCHEDULE OF CHANGES IN TMRS OTHER POST-EMPLOYMENT BENEFIT LIABILITY
AND RELATED RATIOS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
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
No assets are accumulated in a trust that meets the criteria in
paragraph 4 of Statement No. 75 to pay related benefits.
Actuarially determined contribution rates are calculated as of December 31st and become effective on January 1st,13 months
and a day later.
All administrative expenses are paid through the Pension Trust and
accounted for under reporting requirements under GASB Statement
No. 68.
3.50% to 11.50% including inflation
2.00%
2019 Municipal Retirees of Texas Mortality Tables.The rates are
projected on a fully generational basis with scale UMP.
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.
63
Measurement Date December 31,2021 2020 2019 2018 2017
Total OPEB liability
Service cost 161,830$ 141,084$ 125,648$ 121,821$ 107,517$
Interest on total OPEB liability 50,064 60,561 78,646 67,947 69,435
Difference in actuarial experience 134,106 4,341 343,086)( 14,962 -
Change of assumptions 191,684)( 161,146 275,398 81,106)( 96,092
Benefit payments 88,569)( 64,499)( 59,401)( 57,530)( 42,189)(
Net change in total OPEB liability 65,747 302,633 77,205 66,094 230,855
Total OPEB liability, beginning 2,466,556 2,163,923 2,086,718 2,020,624 1,789,769
Total OPEB liability, ending (a)2,532,303$ 2,466,556$ 2,163,923$ 2,086,718$ 2,020,624$
Covered payroll 23,290,477$ 20,870,983$ 19,521,924$ 18,974,951$ 16,068,891$
Total OPEB liability as a percentage of
covered payroll 10.87%11.82%11.08%11.00%12.57%
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
Mortality
Health care trend rates
Participation rates
Other information
CITY OF SCHERTZ, TEXAS
SCHEDULE OF CHANGES IN CITY RETIREE HEALTH OTHER POST-EMPLOYMENT BENEFITLIABILITY AND RELATED RATIOS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
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.
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
Based on the experience study covering the four-year period ending
December 31,2018 as conducted for the Texas Municipal Retirement
System (TMRS).
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.
Initial rate of 7.00%declining to an ultimate rate of 4.15%after 13
years.
For all non-Medicare retirees, 30% if retiring from age 50 to 59, and
35% if retiring from age 60 to 64.
64
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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 - Nonmajor 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.
2022 2021
ASSETS
Cash and cash equivalents 12,128,331$ 11,733,703$
Investments 2,404,552 2,514,059
Receivables (net of allowances)
Taxes 3,174,973 2,924,472
Accounts and other 2,128,452 1,636,735
Due from other funds 648,630 678,444
Inventory 154,096 134,373
Prepaid items 28,090 28,090
Restricted assets:Cash and cash equivalents 869,564 946,454
Total Assets 21,536,688 20,596,330
LIABILITIES
Accounts payable 1,752,626 921,978
Accrued salaries and benefits 431,088 1,180,560
Retainage payable - 1,007
Customer deposits 105,891 60,492
Due to other governments 83,060 16,139 Due to other funds 16,139 40,589
Unearned revenues 50,078 -
Total Liabilities 2,438,882 2,220,765
DEFERRED INFLOWS OF RESOURCESUnavailable revenues 2,030,907 1,896,998
Total Deferred Inflows of Resources 2,030,907 1,896,998
FUND BALANCES
Nonspendable for:
Inventory 154,096 134,373
Prepaid items 28,090 28,090
Restricted for:
Police and public safety/municipal court 302,725 287,199
Municipal court 812,283 816,152
PEG capital fees 967,885 889,139
Animal control 42,825 42,416
Scholarships 134,632 116,505
Committed for:
Civic Center/CIED 1,021,594 907,676
Assigned for:
Property replacement 909,889 902,849
Subsequent year's budget 446,341 598,549
Unassigned 12,246,539 11,755,619
Total Fund Balances 17,066,899 16,478,567
Total Liabilities, Deferred inflows of Resources,
and Fund Balances 21,536,688$ 20,596,330$
CITY OF SCHERTZ, TEXAS
COMPARATIVE BALANCE SHEETS
GENERAL FUND
SEPTEMBER 30, 2022
(WITH COMPARATIVE TOTALS FOR 2021)
65
2022 2021
REVENUESTaxes 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$
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED 2021)
CITY OF SCHERTZ, TEXAS
COMPARATIVE SCHEDULES OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
GENERAL FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2022
66
2022 2021
ASSETSCash and cash equivalents 22,721,336$ 18,542,752$
Investments 2,227,105 2,206,135
Receivables, net of allowances:
Taxes 1,101,960 1,054,214
Accounts and other 7,949 7,949 Prepaid items 990 990
Total Assets 26,059,340 21,812,040
LIABILITIESAccounts payable 16,212 5,809
Total Liabilities 16,212 5,809
FUND BALANCES
Restricted for:
Economic development 26,043,128 21,806,231
Total Fund Balances 26,043,128 21,806,231
Total Liabilities and Fund Balances 26,059,340$ 21,812,040$
CITY OF SCHERTZ, TEXAS
COMPARATIVE BALANCE SHEETS
ECONOMIC DEVELOPMENT CORPORATION
SEPTEMBER 30, 2022
(WITH COMPARATIVE TOTALS FOR 2021)
67
2022 2021
REVENUESTaxes 6,025,703$ 5,615,928$
Investment earnings 201,279 56,144
Total Revenues 6,226,982 5,672,072
EXPENDITURES
Current:
General government 218,302 306,025
Administration 531,783 528,442
Total Expenditures 750,085 834,467
Excess (Deficiency) of Revenues Over (Under) Expenditures 5,476,897 4,837,605
OTHER FINANCING SOURCES (USES)
Transfers out 1,240,000)( 4,050,000)(
Total Other Financing Sources (Uses)1,240,000)( 4,050,000)(
NET CHANGE IN FUND BALANCE 4,236,897 787,605
FUND BALANCES - BEGINNING 21,806,231 21,018,626
FUND BALANCES - ENDING 26,043,128$ 21,806,231$
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED 2021)
CITY OF SCHERTZ, TEXAS
COMPARATIVE SCHEDULES OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
ECONOMIC DEVELOPMENT CORPORATION
FOR THE YEAR ENDED SEPTEMBER 30, 2022
68
2022 2021
ASSETSCash and cash equivalents 1,864,408$ 1,087,376$
Receivables, net of allowances:
Taxes 172,341 133,778
Total Assets 2,036,749 1,221,154
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues 172,340 133,778
Total Deferred Inflows of Resources 172,340 133,778
FUND BALANCES
Restricted for:
Debt service 1,864,409 1,087,376
Total Fund Balances 1,864,409 1,087,376
Total Deferred Inflows of Resources and Fund
Balances 2,036,749$ 1,221,154$
CITY OF SCHERTZ, TEXAS
COMPARATIVE BALANCE SHEETS
DEBT SERVICE FUND
SEPTEMBER 30, 2022
(WITH COMPARATIVE TOTALS FOR 2021)
69
Variance With
2022 Final Budget 2021
Original Final Actual Positive Actual
Budget Budget Amounts (Negative)Amounts
REVENUES
Property taxes 7,329,862$ 7,329,862$ 7,182,900$ 146,962)$( 7,102,016$
Investment income 5,000 5,000 143,428 138,428 1,593
Miscellaneous 100,000 100,000 75,000 25,000)( 125,000
Total Revenue 7,434,862 7,434,862 7,401,328 33,534)( 7,228,609
EXPENDITURES
Debt service:
Principal 4,920,000 4,920,000 4,805,000 115,000 4,955,000
Interest and fiscal charges 1,706,915 1,706,915 1,779,157 72,242)( 1,801,467
Bond issue costs 50,000 50,000 90,626 40,626)( 140,140
Total Expenditures 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$
(WITH COMPARATIVE ACTUAL TOTALS FOR 2021)
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
DEBT SERVICE FUND
BUDGET AND ACTUAL
FOR THE YEAR ENDED SEPTEMBER 30, 2022
70
2022 2021
ASSETSCash 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$
CITY OF SCHERTZ, TEXAS
COMPARATIVE BALANCE SHEETS
CAPITAL PROJECTS FUND
SEPTEMBER 30, 2022
(WITH COMPARATIVE TOTALS FOR 2021)
71
2022 2021
REVENUESIntergovernmental -$ 724,993$
Investment earnings 196,624 12,333
Miscellaneous 450,000 501,922
Total Revenues 646,624 1,239,248
EXPENDITURES
Capital outlay 9,544,074 4,582,289
Debt service:
Bond issue costs 468,285 -
Total Expenditures 10,012,359 4,582,289
Excess (Deficiency) of Revenues Over Expenditures 9,365,735)( 3,343,041)(
OTHER FINANCING SOURCES (USES)Issuance of debt 31,540,000 6,384,362
Premium on issuance of debt 2,778,912 -
Transfers in 3,285,112 -
Transfers out 2,737)( 7,915)(
Total Other Financing Sources (Uses)37,601,287 6,376,447
NET CHANGE IN FUND BALANCE 28,235,552 3,033,406
FUND BALANCES - BEGINNING 13,170,964 10,137,558
FUND BALANCES - ENDING 41,406,516$ 13,170,964$
(WITH COMPARTIVE TOTALS FOR THE YEAR ENDED 2021)
CITY OF SCHERTZ, TEXAS
COMPARATIVE SCHEDULES OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
CAPITAL PROJECTS FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2022
72
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 1,646,618 261,521 708,060 5,404
Total Liabilities and Fund Balances 1,709,531$ 264,072$ 722,434$ 83,400$
Special Revenue Funds
CITY OF SCHERTZ, TEXAS
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2022
73
Capital
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
134,573 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 4,779 648,630)( 69,569 26,988 2,559,354 4,768,236
134,573$ 4,779$ -$ 69,839$ 26,988$ 2,559,354$ 5,574,970$
Special Revenue Funds
74
Hotel
Occupancy Park Tree Treasury
Fund Fund Mitigation Forfeiture
REVENUES
Occupancy tax 804,132$ -$ -$ -$
Permits and fees - - 136,950 -
Service fees - - - -
Fines and fees - - - 50,840
Intergovernmental - - - -
Investment earnings 14,583 2,194 5,324 -
Miscellaneous - - - -
Total Revenues 818,715 2,194 142,274 50,840
EXPENDITURES
Current:
General government 242,875 - - -
Public safety - - - -
Parks and recreation - 10,040 82,110 -
Cultural - - - -
Administration 74,443 - - -
Capital outlay 1,156,495 17,650 - 77,996
Total Expenditures 1,473,813 27,690 82,110 77,996
Excess (Deficiency) of Revenue
Over Expenditures 655,098)( 25,496)( 60,164 27,156)(
OTHER FINANCING SOURCES (USES)
Transfer in - - - -
Transfer out - - - -
Total Other Financing Sources (Uses)- - - -
NET CHANGE IN FUND BALANCES 655,098)( 25,496)( 60,164 27,156)(
FUND BALANCES - BEGINNING 2,301,716 287,017 647,896 32,560
FUND BALANCES - ENDING 1,646,618$ 261,521$ 708,060$ 5,404$
Special Revenue Funds
CITY OF SCHERTZ, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
75
Capital
Projects Fund
Library Historical Capital Total Nonmajor
Justice State Grant Advisory Committee Recovery Governmental
Forfeitures Forfeitures Fund Board Fund Roadways Funds
-$ -$ -$ -$ -$ -$ 804,132$
- - - - - - 136,950
- - - 18,292 1,943 798,955 819,190
46,238 - - - - - 97,078
- - 94,509 - - - 94,509
784 - - 546 - 19,878 43,309
- - - 507 - - 507
47,022 - 94,509 19,345 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 - - - - 60,519 1,321,933
9,273 - 16,256 14,340 3,116 60,519 1,765,113
37,749 - 78,253 5,005 1,173)( 758,314 230,562
- - - - 13,863 - 13,863
- - 51,840)( - - - 51,840)(
- - 51,840)( - 13,863 - 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)$( 69,569$ 26,988$ 2,559,354$ 4,768,236$
Special Revenue Funds
76
Variance With
2022 Final Budget 2021
Original Final Actual Positive Actual
Budget Budget Amounts (Negative)Amounts
REVENUES
Occupancy tax 520,000$ 520,000$ 804,132$ 284,132$ 518,921$
Investment earnings 5,250 5,250 14,583 9,333 2,095
Total Revenues 525,250 525,250 818,715 293,465 521,016
EXPENDITURES
Current:
General government 196,966 335,354 242,875 92,479 263,300
Administration 74,443 74,443 74,443 - 72,464
Capital outlay 20,000 1,170,000 1,156,495 13,505 -
Total Expenditures 291,409 1,579,797 1,473,813 105,984 335,764
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$
(WITH COMPARATIVE ACTUAL TOTALS FOR 2021)
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
HOTEL OCCUPANCY FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2022
77
Variance With
2022 Final Budget 2021
Original Final Actual Positive Actual
Budget Budget Amounts (Negative)Amounts
REVENUES
Licenses and permits 318,000$ 318,000$ -$ 318,000)$( -$
Investment earnings 1,025 1,025 2,194 1,169 293
Total Revenues 319,025 319,025 2,194 316,831)( 293
EXPENDITURES
Current:
Parks and recreation 25,000 25,000 10,040 14,960 4,500
Capital outlay 100,000 100,000 17,650 82,350 1,012
Total Expenditures 125,000 125,000 27,690 97,310 5,512
NET CHANGE IN FUND BALANCE 194,025 194,025 25,496)( 414,141)( 5,219)(
FUND BALANCE - BEGINNING 287,017 287,017 287,017 - 292,236
FUND BALANCE - ENDING 481,042$ 481,042$ 261,521$ 219,521)$( 287,017$
(WITH COMPARATIVE ACTUAL TOTALS FOR 2021)
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
PARK FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2022
78
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$
(WITH COMPARATIVE ACTUAL TOTALS FOR 2021)
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
79
2022 2021
REVENUESFines and fees 50,840$ -$
Total Revenues 50,840 -
EXPENDITURES
Capital outlay 77,996 -
Total Expenditures 77,996 -
NET CHANGE IN FUND BALANCE 27,156)( -
FUND BALANCE - BEGINNING 32,560 32,560
FUND BALANCE - ENDING 5,404$ 32,560$
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES
TREASURY FORFEITURES FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2022
(WITH COMPARATIVE TOTALS FOR 2021)
AND CHANGES IN FUND BALANCE
80
2022 2021
REVENUESFines and fees 46,238$ 5,844$
Investment earnings 784 176
Total Revenues 47,022 6,020
EXPENDITURES
Current:
Public safety - 94,899 Capital outlay 9,273 24,750
Total Expenditures 9,273 119,649
NET CHANGE IN FUND BALANCE 37,749 113,629)(
FUND BALANCE - BEGINNING 96,824 210,453
FUND BALANCE - ENDING 134,573$ 96,824$
(WITH COMPARATIVE TOTALS FOR 2021)
FOR THE YEAR ENDED SEPTEMBER 30, 2022
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES
JUSTICE FORFEITURES FUND
AND CHANGES IN FUND BALANCE
81
2022 2021REVENUES
Fines and fees -$ -$
Investment earnings - -
Total Revenues - -
EXPENDITURES
Current:Public safety - 7,995
Total Expenditures - 7,995
NET CHANGE IN FUND BALANCE - 7,995)(
FUND BALANCE - BEGINNING 4,779 12,774
FUND BALANCE - ENDING 4,779$ 4,779$
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES
STATE FORFEITURES FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2022
(WITH COMPARATIVE TOTALS FOR 2021)
AND CHANGES IN FUND BALANCE
82
Variance With
2022 Final Budget 2021
Original Final Actual Positive Actual
Budget Budget Amounts (Negative)Amounts
REVENUES
Service fees 16,000$ 16,000$ 18,292$ 2,292$ 9,104$
Investment earnings 200 200 546 346 111
Miscellaneous - - 507 507 13
Total Revenues 16,200 16,200 19,345 3,145 9,228
EXPENDITURES
Current:
Cultural 22,200 22,200 14,340 7,860 19,708
Total Expenditures 22,200 22,200 14,340 7,860 19,708
NET CHANGE IN FUND BALANCE 6,000)( 6,000)( 5,005 11,005 10,480)(
FUND BALANCE - BEGINNING 64,564 64,564 64,564 - 75,044
FUND BALANCE - ENDING 58,564$ 58,564$ 69,569$ 11,005$ 64,564$
(WITH COMPARATIVE ACTUAL TOTALS FOR 2021)
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
83
Variance With
2022 Final Budget 2021
Original Final Actual Positive Actual
Budget Budget Amounts (Negative)Amounts
REVENUES
Sale of merchandise 1,000$ 1,000$ 1,943$ 943$ 590$
Miscellaneous - - - - 2
Total Revenues 1,000 1,000 1,943 943 592
EXPENDITURES
Current:
General government 11,750 11,750 3,116 8,634 3,108
Total Expenditures 11,750 11,750 3,116 8,634 3,108
Excess of Revenues Over Expenditures 10,750)( 10,750)( 1,173)( 9,577 2,516)(
OTHER FINANCING SOURCES (USES)
Transfers in 10,750 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$
(WITH COMPARATIVE ACTUAL TOTALS FOR 2021)
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
84
2022 2021
REVENUESService fees 798,955$ 902,712$
Investment earnings 19,878 1,828
Total Revenues 818,833 904,540
EXPENDITURES
Capital outlay 60,519 41,127
Total Expenditures 60,519 41,127
NET CHANGE IN FUND BALANCE 758,314 863,413
FUND BALANCE - BEGINNING 1,801,040 937,627
FUND BALANCE - ENDING 2,559,354$ 1,801,040$
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES
CAPITAL RECOVERY ROADWAYS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
(WITH COMPARATIVE TOTALS FOR 2021)
AND CHANGES IN FUND BALANCE
85
STATISTICAL SECTION
THIS PAGE LEFT BLANK INTENTIONALLY
STATISTICAL SECTION
(Unaudited)
This part of the City of Schertz, Texas Annual Comprehensive Financial Report presents detailed information
as a context for understanding what the information in the financial statements, note disclosures, and
required supplementary information says about the City’s overall financial health.
Contents Page Financial Trends These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time. 86 – 95 Revenue Capacity These schedules contain information to help the reader assess the
City’s most significant local revenue sources. 96 – 104
Debt Capacity
These schedules present information to help the reader assess the
affordability of the City’s current levels of outstanding debt and the
City’s ability to issue additional debt in the future. 105 – 110
Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place. 111 – 114 Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs. 115 – 120
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$ 79,947,701$
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$ 156,978,664$ 173,511,371$
Fiscal Year
CITY OF SCHERTZ, TEXAS
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(UNAUDITED)
86
TABLE 1
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$ 120,878,838$ 121,781,341$ 137,531,279$ 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$ 204,744,203$
20,437,116 23,391,047 41,320,993 43,736,037 33,750,758 38,154,008
22,454,858 35,848,433 36,174,725 34,728,518 50,150,925 53,846,695
197,790,247$ 213,377,994$ 235,636,559$ 243,392,976$ 266,288,279$ 296,744,906$
Fiscal Year
87
2013 2014 2015 2016
Expenses
Governmental activities:
General government 7,066,087$ 6,958,530$ 6,443,227$ 6,557,778$
Public safety 9,567,595 10,025,703 10,836,712 12,141,968
Public environment 3,622,834 3,740,538 3,876,644 4,147,653
Parks and recreation 1,807,559 1,807,136 2,164,604 2,034,964
Cultural 907,676 870,159 892,194 954,871
Health 344,647 407,114 470,468 570,204
Administration 1,180,656 1,942,312 1,845,877 1,954,276
Interest and other fees 3,340,951 2,352,856 2,226,635 2,240,783
Total Governmental Activities Expenses 27,838,005 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 48,752,321 50,134,589 51,916,846 55,875,718
Program Revenues
Governmental activities:
Charges for services:
General government 2,230,800 1,974,637 1,840,547 1,507,252
Public safety 2,516,547 2,536,476 2,603,476 2,415,537
Public environment - - - -
Parks and recreation 721,222 917,639 794,003 788,727
Cultural 305,932 309,897 325,178 326,079
Health 38,149 32,429 26,744 30,308
Operating grants and contributions 234,084 220,264 336,252 342,485
Capital grants and contributions 1,531,740 5,756,456 5,509,530 6,227,664
Total Governmental
Activities Program Revenues 7,578,474 11,747,798 11,435,730 11,638,052
Business-type activities:
Charges for services:
Water and sewer 17,696,327 19,147,872 20,700,369 22,003,794
EMS 4,459,600 4,533,753 4,415,126 5,921,223
Capital grants and contributions 1,301,235 2,809,110 4,158,552 2,831,126
Total Business-Type Activities
Program Revenues 23,457,162 26,490,735 29,274,047 30,756,143
Total Primary Government
Program Revenues 31,035,636 38,238,533 40,709,777 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)(
Fiscal Year
CITY OF SCHERTZ, TEXAS
CHANGE IN NET POSITION
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(UNAUDITED)
88
TABLE 2
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
6,111,474 3,132,348 1,975,524 292,408 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)( 27,325,955)( 31,875,281)( 17,675,080)( 19,375,672)(
Fiscal Year
CHANGE IN NET POSITION
89
2013 2014 2015 2016
General Revenues and
Other Changes in Net Position
Governmental activities:
Taxes
Ad valorem 12,359,146$ 12,794,172$ 14,139,037$ 15,131,997$
Sales 9,637,097 10,553,382 10,315,125 10,921,489
Franchise fees 1,681,079 2,073,162 2,263,783 2,250,815
Hotel/motel 503,267 552,570 563,734 544,871
Mixed drink 30,421 39,917 43,656 43,073
Investment income 54,270 43,279 56,820 187,847
Miscellaneous 505,268 180,316 197,881 309,275
Transfers 25,140 50,000)( 42,235)( 29,211
Total Governmental Activities 24,795,688 26,186,798 27,537,801 29,418,578
Business-type activities:
Interest and investment earnings 53,089 31,810 47,728 102,642
Miscellaneous 664,521 609,003 344,731 522,221
Transfers 25,140)( 50,000 42,235 29,211)(
Total Business-Type Activities 692,470 690,813 434,694 595,652
Total Primary Government 25,488,158 26,877,611 27,972,495 30,014,230
Change in Net Position
Governmental activities 4,536,157 9,830,248 10,217,170 10,454,133
Business-type activities 3,235,316 5,151,307 6,548,256 6,078,574
Total Primary Government 7,771,473$ 14,981,555$ 16,765,426$ 16,532,707$
Source: City financial statements
Fiscal Year
CITY OF SCHERTZ, TEXAS
CHANGE IN NET POSITION
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(UNAUDITED)
90
TABLE 2
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)( 19,186)( 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$
Fiscal Year
CHANGE IN NET POSITION
91
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.
Fiscal Year
CITY OF SCHERTZ, TEXAS
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(UNAUDITED)
92
TABLE 3
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$
Fiscal Year
93
2013 2014 2015 2016
Revenues
Taxes 24,181,863$ 26,021,730$ 27,348,297$ 28,865,727$
Permits and fees 1,609,954 1,805,047 1,731,302 1,493,336
Service fees 1,739,387 1,763,964 1,797,151 1,789,321
Fines and fees 1,927,744 1,750,311 1,534,588 1,441,474
Intergovernmental 492,332 221,769 393,607 401,494
Other revenue 767,110 671,731 689,805 1,741,436
Total Revenues 30,718,390 32,234,552 33,494,750 35,732,788
Expenditures
Current:
General government 6,311,276 5,981,439 5,582,441 5,657,998
Public safety 9,113,840 9,409,894 10,158,401 11,048,767
Public environment 951,528 1,012,607 952,663 1,007,326
Parks and recreation 1,412,329 1,338,232 1,658,197 1,528,356
Cultural 840,595 815,691 821,146 869,162
Health 341,961 394,918 404,008 480,175
Administration 1,289,078 2,270,041 2,056,646 2,015,573
Capital outlay 3,277,397 8,000,467 2,314,668 10,192,398
Debt service:
Principal 3,217,325 3,695,597 3,918,008 4,040,975
Interest and fiscal charges 2,381,171 2,108,610 2,112,746 1,896,911
Bond issue costs 31,750 165,650 7,992 449,358
Payment to refund agent - - - -
Total Expenditures 29,168,250 35,193,146 29,986,916 39,186,999
Excess of Revenues Over (Under)
Expenditures 1,550,140 2,958,594)( 3,507,834 3,454,211)(
Other Financing Sources (Uses)
Bond & debt issuances 1,635,000 8,583,715 245,000 10,750,000
Refunding bond issuance - - - 4,185,000
Premium (discount) on bond issue - 686,137 - 590,432
Payment to refund agent - 9,182,250)( - 4,215,482)(
Transfer in 788,084 1,243,833 989,120 863,583
Transfer out 788,084)( 1,293,832)( 1,031,355)( 834,371)(
Net Other Financing Sources (Uses)1,635,000 37,603 202,765 11,339,162
Net Change in Fund Balances 3,185,140$ 2,920,991)$( 3,710,599$ 7,884,951$
Debt Service as a Percentage of
Noncapital Expenditures 21.6% 21.3% 21.3% 20.5%
Source: Statement of Revenues, Expenditures, and Changes in Fund Balance for Governmental Funds.
Fiscal Year
CITY OF SCHERTZ, TEXAS
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(UNAUDITED)
94
TABLE 4
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 42,761,572 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%
Fiscal Year
95
Fiscal Property Sales & Use Franchise Mixed
Year Tax Tax Tax 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
CITY OF SCHERTZ, TEXAS
GOVERNMENTAL FUNDS TAX REVENUES BY SOURCE
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(UNAUDITED)
96
TABLE 5
Hotel
Bingo 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
TABLE 6
FiscalYear Total Water &Water & Water & Sewer
Ended Sewer Consumption Sewer Initial Rate PerSeptember 30, (In Gallons)Base Rate 1,000 Gallons20221,700,418,300 39.04 7.79 2021 1,629,336,300 38.15 6.97
2020 1,982,664,200 38.15 6.97
2019 1,622,930,500 37.15 6.84
2018 1,583,312,400 35.61 6.53
2017 1,583,462,300 34.35 6.21
2016 1,509,250,000 30.11 5.73
2015 1,472,948,300 26.54 5.43
2014 1,543,351,600 24.38 5.17
2013 1,550,039,700 22.69 4.84
CITY OF SCHERTZ, TEXAS
TOTAL WATER AND SEWER CONSUMPTION AND RATES
LAST TEN FISCAL YEARS
98
TABLE 7
TAXPAYERS
Total
Water
Consumption
(In Gallons)Rank
Percentage
of
Total City
Water
Consumption
Total
Water
Consumption
(In Gallons)Rank
Percentage
of
Total City
Water
Consumption
City of Selma 231,927,200 1 13.64%
City of Cibolo 21,715,000 2 1.28%
Crossvine Master Community 15,447,000 3 0.91%
WHC Schertz Apts, LLC 11,787,500 4 0.69%
Pecan Grove 10,628,900 5 0.63%8,567,600 3 0.55%
Sycamore Creek Apartments 8,381,500 6 0.49%6,447,400 5 0.42%
Comal ISD Middle School 7,743,900 7 0.46%
DDC Ashton, LTD 6,534,100 8 0.38%
APG Texas 1LP 5,772,600 9 0.34%6,766,200 4
Sysco 5,059,800 10 0.30%20,104,300 2
Lions Fut Ball Club 25,141,000 1 1.62%
Manco Structures 6,304,900 6 0.41%
Big Time Management 6,275,400 7 0.40%
Legacy Oaks Apartments 4,554,000 8 0.29%
City of Schertz (Soccor Field)4,444,100 9 0.29%
YMCA/Splash Pad 4,196,400 10 0.27%
TOTAL 324,997,500 19.11%92,801,300 4.25%
Total City Water Consumption 1,700,418,300 1,550,039,700
2022 2013
CITY OF SCHERTZ, TEXAS
PRINCIPAL WATER AND SEWER CONSUMERS
LAST TEN FISCAL YEARS
99
TABLE 8
Schertz-
Cibolo-Fiscal Basic Debt Universal Comal
Year Rate Service Total City ISD ISD20220.3517 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
Community
Fiscal Bexar Hospital River College Comal GuadalupeYearCountyDistrictAuthorityDistrictCountyCounty
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
Overlapping CountiesBexar
City Direct Rates Overlapping School Districts
CITY OF SCHERTZ, TEXAS
DIRECT AND OVERLAPPING PROPERTY TAX RATES
LAST TEN FISCAL YEARS (UNAUDITED)
100
TABLE 9
Percentage Percentage
of of
Total City Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
SYSCO Central Texas 122,083,920$ 1 2.99%
Caterpillar Inc.101,547,810 2 2.49%19,098,384 5 0.97%
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%47,821,320 1 2.43%
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 LP 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.44,955,071 2 2.28%
Capital Group Companies Inc.41,515,938 3 2.11%
San Antonio MTA LP 23,026,185 4 1.17%
SC Schertz LLC 16,900,000 6 0.86%
Visionworks 14,471,578 7 0.74%
Salof Properties II LLC 14,300,000 8 0.73%
Wal-Mart Real Estate Business Trust 13,137,327 9 0.67%
H.E.Butt Grocery Co.11,682,083 10 0.59%
Totals 566,459,817$ 13.87% 246,907,886$ 12.54%
Total Taxable
Assessed Value 4,084,425,464$ 1,968,808,829$
2022 2013
CITY OF SCHERTZ, TEXAS
PRINCIPAL PROPERTY OF TAX PAYERS
CURRENT YEAR AND NINE YEARS AGO
101
THIS PAGE LEFT BLANK INTENTIONALLY
TABLE 10
Fiscal Year Taxes Levied Collections In
Ended for the % of Subsequent % of
September 30,Fiscal Year Amount Levy Years Amount Levy
2022 22,951,478$ 22,775,565$ 99.23%-$ 22,788,154$ 99.29%
2021 22,011,090 21,787,625 98.98%40,262 21,827,887 99.17%
2020 20,854,329 20,758,493 99.54%68,692 20,827,185 99.87%
2019 19,922,568 19,825,244 99.51%85,062 19,910,306 99.94%
2018 18,010,824 17,899,825 99.38%71,342 17,971,167 99.78%
2017 17,356,822 17,241,556 99.34%72,675 17,314,231 99.75%
2016 16,238,180 16,160,248 99.52%57,835 16,218,083 99.88%
2015 14,793,867 14,738,760 99.63%44,730 14,783,490 99.93%
2014 13,383,759 13,297,258 99.35%68,412 13,365,670 99.86%
2013 12,536,540 12,455,336 99.35%71,432 12,526,768 99.92%
Collected Within Total Collections
Fiscal Year of Levy To Date
CITY OF SCHERTZ, TEXAS
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(UNAUDITED)
102
FiscalYear TaxableEndedValue Residential Commercial
September 30,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.
CITY OF SCHERTZ, TEXAS
TAXABLE ASSESSED VALUE
LAST TEN FISCAL YEARS(UNAUDITED)
103
TABLE 11
Total Taxable TotalTax-Exempt Other Assessed Direct
Property Property Value*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
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
Governmental Activities
CITY OF SCHERTZ, TEXAS
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Business-Type Activities
105
TABLE 12
General Total Percent
Obligation Financing Tax Primary of Gross Per
Bonds Arrangement Notes Government Income Capita
5,111,592$ 327,685$ -$ 116,471,528$ 5.24%2,034$
2,895,000 475,121 - 68,906,656 4.25%1,619
3,685,000 134,662 150,000 75,575,357 4.50%1,769
4,445,000 199,421 460,000 82,545,120 5.60%1,932
2,127,657 289,553 765,000 83,532,514 5.98%2,028
2,533,626 92,721 1,065,000 75,076,605 6.22%1,996
3,014,595 162,262 1,360,000 75,076,605 6.39%1,979
3,490,564 231,803 1,640,000 69,297,944 5.99%1,830
3,966,533 347,705 65,000 72,680,179 6.35%1,992
2,127,502 - 130,000 71,193,650 6.50%1,982
Business-Type Activities
106
TABLE 13
Less:Percentage of
General Certificates Amounts Actual Taxable
Fiscal Obligation of Available for Value of Per
Year Bonds Obligation Debt Service Total Property 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
General Bonded Debt Outstanding
CITY OF SCHERTZ, TEXAS
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
107
TABLE 14
Estimated
Estimated Share of
Debt Percentage Overlapping
Governmental Unit Outstanding Applicable*Debt
Debt repaid with property taxes:
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 248,009,268
City Governmental Activities Direct Debt 86,815,863
TOTAL NET OVERLAPPING DEBT 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.
CITY OF SCHERTZ, TEXAS
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
CURRENT YEAR
108
TABLE 15
Assessed Value, 2021 Tax Roll 4,070,815,340$
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. 407,081,534$
Amount of Applicable Debt:
General Bonded Debt 86,815,863$
Less Debt Service Net Position 934,899)( 85,880,964
DEBT MARGIN 321,200,570$
Total Net Debt as a Percentage
of Debt Margin 26.74%
2019 2020 2021
Assessed Value 3,900,769,022$ 4,152,459,607$ 4,070,815,340$
Debt Limit 390,076,902 415,245,961 407,081,534
Total Net Debt Applicable to Limit 66,019,954 61,318,507 53,946,636
Total Debt Margin 324,056,948$ 353,927,454$ 353,134,898$
2016 2017 2018
Assessed Value 3,375,850,131$ 3,647,504,903$ 3,783,027,833$
Debt Limit 337,585,013 364,750,490 378,302,783
Total Net Debt Applicable to Limit 61,181,169 65,792,916 66,329,699
Total Debt Margin 276,403,844$ 298,957,574$ 311,973,084$
2013 2014 2015
Assessed Value 2,600,365,551$ 2,752,562,574$ 3,037,267,611$
Debt Limit 260,036,555 275,256,257 303,726,761
Total Net Debt Applicable to Limit 60,499,568 56,803,499 53,424,303
Total Debt Margin 199,536,987$ 218,452,758$ 250,302,458$
Fiscal Year
CITY OF SCHERTZ, TEXAS
DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
109
TABLE 16
Utility Less: Net
Fiscal Service Operating Available
Year Charges Expenses Revenue Principal Interest Coverage
2022 30,876,559$ 24,362,098$ 6,514,461$ 1,180,000$ 912,019$ 3.11
2021 28,030,614 22,231,246 5,799,368 1,856,953 515,413 2.44
2020 29,735,911 24,032,772 5,703,139 1,961,953 612,643 2.22
2019 27,246,250 22,622,986 4,623,264 1,845,132 561,880 1.92
2018 27,099,237 20,802,263 6,296,974 1,671,134 391,609 3.05
2017 25,390,713 18,697,162 6,693,551 1,554,541 368,390 3.48
2016 22,003,794 17,603,487 4,400,307 1,441,741 417,346 2.37
2015 20,700,369 15,916,597 4,783,772 1,448,407 428,912 2.55
2014 19,147,872 15,246,653 3,901,219 1,010,500 426,100 2.72
2013 17,696,327 14,553,274 3,143,053 728,800 359,680 2.89
Water Revenue Bonds
Debt Service
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.
CITY OF SCHERTZ, TEXAS
PLEDGED REVENUE COVERAGE
LAST TEN FISCAL YEARS
110
TABLE 17
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.
CITY OF SCHERTZ, TEXAS
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
111
TABLE 18
2022
Employer Employees
Percentage
of Total City
Employment Employees
Percentage
of Total City
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
2013
CITY OF SCHERTZ, TEXAS
TOP TEN PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
112
Function 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
Full-Time Equivalent Employees as of September 30,
CITY OF SCHERTZ, TEXAS
FULL-TIME EQUIVALENT CITY GOVERNMENTAL EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
113
TABLE 19
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
1 - - - - -
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
Full-Time Equivalent Employees as of September 30,
114
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
CITY OF SCHERTZ, TEXAS
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Fiscal Year
115
TABLE 20
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
Fiscal Year
116
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
Library
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
Fiscal YearFiscal Year
CITY OF SCHERTZ, TEXAS
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
117
TABLE 20
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
Fiscal Year
118
Function 2013 2014 2015 2016
Police
Stations 1 1 11
Patrol Units 42 42 48 50
Fire
Stations 2 2 22
Fire Vehicles 13 15 16 16
EMS
Ambulances 7 7 99
Marshal Service
Vehicles 7 7 77
Streets
Streets, Paved (Miles) 137 141 149 153
Streets, Unpaved (Miles) 5 5 55
Parks and Recreation
Parks - Developed 13 13 14 15
Parks - Undeveloped 8 8 910
Playground 16 16 18 19
Swimming Pools 2 2 22
Baby Pools 2 2 22
Baseball/Softball Diamonds 12 12 15 15
Soccer Fields 12 12 12 12
Community Centers 4 4 44
Animal Control
Control Vehicle 3 3 34
Library
Facility 1 1 11
Volumes in Collection 86,221 100,478 113,085 97,412
Water
Number of Pump Stations 5 5 55
Water Mains (Miles) 197 199 210 211
Sewer
Sanitary Sewers (Miles) 87 90 96 98
Storm Sewers (Miles) 11 11 12 12
Facilities Maintenance
Vehicles 5 5 66
Fleet
Generators 3 3 44
Vehicles & Equipment N/A N/A N/A N/A
CITY OF SCHERTZ, TEXAS
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Fiscal Year
119
TABLE 21
2017 2018 2019 2020 2021 2022
111111
64 69 68 72 66 76
233333
16 18 19 20 20 24
88991011
777773
159 153 165.4 165 167.5 172
555555
20 21 21 21 21 21
444455
19 19 20 21 21 36
444443
222221
15 15 15 15 15 15
12 12 12 12 12 12
444444
344668
111111
107,382 110,266 150,972 139,447 149,965 155,715
555676
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
6111110 810
4710788
N/A 384 352 341 376 373
Fiscal Year
120
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