City of Schertz ACFR FY23
CITY OF SCHERTZ, TEXAS
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED
SEPTEMBER 30, 2023
OFFICIALS ISSUING REPORT
Steve Williams
City Manager
James Walters
Director of Finance
CITY OF SCHERTZ, TEXAS
FOR THE YEAR ENDED SEPTEMBER 30, 2023
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
§C]H[]ERTZ I
March 19, 2024
COMMUNITY SERVICE OPPORTUNITY
To the Honorable Mayor, City Council, and the Citizens of Schertz:
State law requires that local governments publish a complete set of financial statements presented in conformity with generally accepted accounting principles in the United States of America (U.S. GAAP) and audited in accordance with generally accepted auditing standards in the United States of America by a firm of licensed certified public accountants. Pursuant to that requirement, we hereby issue the annual comprehensive financial report of the City of Schertz for the fiscal year ended September 30, 2023.
This report consists of management's representations concerning the finances of the City of Schertz. Consequently, management assumes full responsibility for the completeness and reliability of all the information presented in this report. To provide a reasonable basis for making these representations, management of the City of Schertz has established a comprehensive internal control framework that is designed both to protect the government's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City ofSchertz'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 financial 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, 2023, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the fmancial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall fmancial 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, 2023, 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 43,010 in 2022 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
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§ClHllElR{lrZ 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 2023. The surrounding metro area saw growth evidenced by the Federal Reserve Bank of Dallas reporting the San Antonio Business-Cycle Index increase 3.98% year over year for September 2023. This Index has normalized to its log term trend and continues to potentially indicates a continued period of economic growth for the region. As of September 2023, the unemployment rate for Texas was 3.9% and San Antonio-New Braunfels area matched at 3.9%. Schertz, as included in the San Antonio-New Braunfels MSA, had an unemployment rate of 3.6% during this time.
As another indicated of economic growth, the City of Schertz realized a 10.4 % increase year-over-year in sales tax collections during the fiscal year. The City's average longer term growth is 7.2% which indicates the City has maintained its previous growth from the recent years and continued its growth above historic averages.
New residential construction has been slowing in the city the past few years, cutting revenue by 30.6% over last year. Despite the downward trend in new residential permits, overall new taxable value has grown by the historic average of 2.6%.
Industrial development continued to push North along IH-35 across FM 3009 with Phelan-Bennet filling 169,525 sq ft of speculative warehouse distribution on Four Oaks Lane. Doerr Lane Logistics Center is complete and leased and another Cavender and Hill Project, 3009 Distribution Center will add another 112,000 square foot warehouse/distribution to the city, conveniently located off of FM 3009 near IH 35.
In Northern Schertz, redevelopment, expansion, and significant speculative development characterized 2023. Caterpillar again invested in Schertz bringing the total investment to an estimated $70,000,000 and settling on 194 jobs total with two new manufacturing lines. Sysco Central Texas site continued to produce for Schertz, taking advantage of the economic development incentives to secure their 100,000 sq ft expansion of their existing
facility, currently under construction. The Economic Development Corporation also took steps to secure the
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§CJHllElR{lrZ I COMMUNITYSERVICE OPPORTUNITY
funding for waste water infrastructure for a large portion of Schertz, on the north side of 1H 35 and close to our border with New Braunfels.
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 and all funds have been paid to the Texas Department of Transportation as in April 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. All funds have been spent
for this bond election.
In November 2021, the City placed 1 bond proposition before voters totally $15 .4 5 million for Fire Station number 4 which passed. The funds for the new fire station were issued in 2022 and the fire engine and the land have been
purchased with engineering and design for the building are underway.
Current Year Budget Initiatives. For FY 2023-24, the city has made employee wages and benefits a priority. The City Council identified $3.6 million citywide to address concerns of below average compensation. $1.4 million is for an across-the-board employment cost index (ECI), $1.9 million to implement recommendations on the 3rd party classification and compensation study, and $344,700 to cover insurance premium increases.
There were 5 new positions approved in the General Fund, 1 position in Water & Sewer, and 4 in EMS. The General Fund included 3 Firefighters, an Engineering Administration Assistant, and a Part Time Records Clerk. Water & Sewer was approved for a second Senior Billing Clerk and EMS was approved for 4 new EMTs.
Other initiatives include $1.2 million for additional street maintenance, $675,000 for a new Vacuum Truck, $550,000 replacement of all police cameras and TASERs annually for 5 years, and career progression
adjustments.
Financial Information:
Internal Control. Management is responsible for establishing and maintaining internal controls designed to ensure that assets of the City are protected from loss, theft or misuse and to provide adequate accounting information compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles for local governments as prescribed by the Governmental Accounting Standards Board (GASB), the Financial Accounting Standards Board (FASB) and the American Institute of Certified Public Accountants (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 financial accounting software which is designed with a system of internal controls. These controls are continually being reevaluated to provide
reasonable, but not absolute, assurances.
Budget Controls. The City also utilizes budgetary controls. Legally expenditures cannot exceed the appropriated amount. The objective of these budgetary controls is to ensure compliance with the adopted budget approved by
the City Council as mandated by the city charter and state law. The levels of budgetary control are established at the line-item basis and at the fund level. Staff believes these controls help monitor and direct approved
expenditures to a level within the budget parameters which directly results in a strong financial performance.
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CITY OF SCHERTZ, TEXAS
CITY OFFICIALS
MAYOR RALPH GUTIERREZ
MAYOR PRO-TEM ALLISON HEYWARD
CITY COUNCIL MARK E. DAVIS
MICHELLE WATSON
PAUL MACALUSO
TIFFANY GIBSON
ROBERT WESTBROOK
ALLISON HEYWARD
TIM BROWN
CITY MANAGER STEVE WILLIAMS
DIRECTOR OF FINANCE JAMES WALTERS
CITY ATTORNEY CHARLES ZECH, DENTON, NAVARRO, ROCHA, BERNAL & ZECH, P.C.
FY 2022-2023
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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, 2022
Executive Director/CEO
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FINANCIAL SECTION
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INDEPENDENT AUDITOR’S REPORT
Honorable Mayor and
Members of the City Council
City of Schertz, Texas
Report on the 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, 2023, 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, 2023, 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 9.7 percent and 11.8 percent, respectively, of the assets and net position of the Water and Sewer
Fund, and 9.3 percent and 11.7 percent, respectively, of the assets and net position of the business-type
activities. Those statements were audited by other auditors whose report has been furnished to us, and our
opinion, insofar as it relates to the amounts included for Schertz-Seguin Local Government Corporation, 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.
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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 2022 financial statements, and we
expressed an unmodified audit opinion on those audited financial statements in our report dated February 28, 2023. In our opinion, the summarized comparative information presented herein as of and for the year ended
September 30, 2022, is consistent, in all material respects, with the audited financial statements from which it
has been derived.
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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 March 19,
2024, 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
March 19, 2024
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MANAGEMENT’S
DISCUSSION AND ANALYSIS
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MANAGEMENT’S DISCUSSION AND ANALYSIS
As management of the City of Schertz, we offer readers of the City's financial statements this narrative overview and
analysis of the financial activities of the City of Schertz for the fiscal year ended September 30, 2023. 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 $345,135,343 (net position). Of this amount, $46,909,951 (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 $48,390,437. The primary reason for this increase was an increase in
capital contributions of approximately $32.6 million.
As of the close of the current fiscal year, the City's governmental funds reported combined ending fund balances of $82,693,803, a decrease of ($8,490,003) in comparison with the prior year. The primary cause of this decrease was
an increase in property and sales tax revenues that exceeded expenditure growth, coupled with spending of bond
proceeds on capital projects.
At the end of the fiscal year, the combined total of the General Fund assigned and unassigned fund balances was
$15,519,596 which is 32.29% 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.
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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 $345,135,343
at the close of the most recent fiscal year. The largest portion of the City's total net position (73%) 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 (14%) represents resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net position, $46,909,951, may be
used to meet the government's ongoing obligations to citizens and creditors.
At the end of the current fiscal year, the City of Schertz is able to report positive balances in all three categories of
net position, both for the government as a whole, as well as for its separate governmental and business-type
activities. The same situation held true for the prior fiscal year.
2023 2022 2023 2022 2023 2022
Current and other assets 97,512,162$ 105,714,129$ 64,573,716$ 73,186,420$ 162,085,878$ 178,900,549$ Capital assets 194,268,903 159,972,447 135,961,908 108,872,222 330,230,811 268,844,669
Total assets 291,781,065 265,686,576 200,535,624 182,058,642 492,316,689 447,745,218
Deferred outflows of resources 9,428,168 4,309,869 3,008,848 1,195,882 12,437,016 5,505,751
Current liabilities 18,488,692 18,382,113 9,086,822 6,911,108 27,575,514 25,293,221
Long-term liabilities 96,863,509 93,693,054 33,494,784 31,871,137 130,358,293 125,564,191
Total liabilities 115,352,201 112,075,167 42,581,606 38,782,245 157,933,807 150,857,412
Deferred inflows of resources 1,334,836 4,374,235 349,719 1,274,416 1,684,555 5,648,651
Net position:
Net investment in capital assets 136,442,093 109,746,340 114,831,425 94,997,863 251,273,518 204,744,203
Restricted 40,311,118 32,745,688 6,640,756 5,408,320 46,951,874 38,154,008
Unrestricted 7,768,985 11,055,015 39,140,966 42,791,680 46,909,951 53,846,695
Total net position 184,522,196$ 153,547,043$ 160,613,147$ 143,197,863$ 345,135,343$ 296,744,906$
Government-Wide
City of Schertz's Net Position
Activities Activities TotalGovernmentalBusiness-Type
The government's net position increased by $48,390,437 during the current fiscal year. The primary cause for the
increase was increased revenues; the City recognized approximately $32.6 million of capital contribution revenue
related to dedicated infrastructure assets and also experienced sharp increases in property and sales taxes. These
increases stem from the City’s continued rapid population growth; continued new housing and business
developments resulted in increased assessed value for property taxes and resulted in the creation of infrastructure
that was dedicated to the City. The related population increases resulted in increased economic activity that
increased sales tax revenues.
7
The following table indicates changes in net position for governmental and business-type activities followed by
graphs displaying total revenues and expenses by type:
2023 2022 2023 2022 2023 2022
Revenues:
Program revenues:Charges for services 6,267,868$ 6,371,968$ 41,093,604$ 40,098,475$ 47,361,472$ 46,470,443$
Operating grants & contributions 2,425,937 3,970,029 - - 2,425,937 3,970,029
Capital contributions 18,456,911 6,987,788 14,180,619 6,143,957 32,637,530 13,131,745
General revenues:Property taxes 25,118,429 22,495,628 - - 25,118,429 22,495,628
Other taxes 23,388,656 21,537,297 - - 23,388,656 21,537,297
Investment earnings 4,678,690 709,898 1,927,277 314,546 6,605,967 1,024,444
Miscellaneous 820,465 1,138,775 479,479 675,739 1,299,944 1,814,514
Total revenues 81,156,956 63,211,383 57,680,979 47,232,717 138,837,935 110,444,100
Expenses:
General government 8,244,956 7,093,652 - - 8,244,956 7,093,652
Public safety 22,195,399 19,580,703 - - 22,195,399 19,580,703 Public environment 6,188,351 8,545,834 - - 6,188,351 8,545,834
Parks and recreation 4,253,278 3,543,978 - - 4,253,278 3,543,978
Cultural 1,380,793 1,168,815 - - 1,380,793 1,168,815
Administration 5,363,700 4,455,947 - - 5,363,700 4,455,947 Interest and other fees 2,555,917 2,490,474 - - 2,555,917 2,490,474
Water and sewer - - 30,088,159 27,833,986 30,088,159 27,833,986
EMS - - 10,176,945 8,234,500 10,176,945 8,234,500
Total expenses 50,182,394 46,879,403 40,265,104 36,068,486 90,447,498 82,947,889
Increase in net position
before transfers 30,974,562 16,331,980 17,415,875 11,164,231 48,390,437 27,496,211
Transfers 591 (316,216) (591) 316,216 - -
Change in net position 30,975,153 16,015,764 17,415,284 11,480,447 48,390,437 27,496,211
Net position - beginning of year 153,547,043 137,531,279 143,197,863 131,717,416 296,744,906 269,248,695
Net position - end of year 184,522,196$ 153,547,043$ 160,613,147$ 143,197,863$ 345,135,343$ 296,744,906$
Government-Wide
City of Schertz's Changes in Net Position
Activities Activities TotalBusiness-TypeGovernmental
TOTAL REVENUES – GOVERNMENT-WIDE
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
Charges forServices OperatingGrants andContributions
Capital GrantsandContributions
PropertyTaxes Other Taxes UnrestrictedInvestmentEarnings
Miscellaneous
2023 2022
8
TOTAL EXPENSES – GOVERNMENT-WIDE
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
GeneralGovernment Public Safety PublicEnvironment Parks andRecreation Cultural Administration Interest andOther Fees
2023 2022
9
GENERAL REVENUE BY SOURCE – GOVERNMENTAL ACTIVITIES
Property Tax46%
Sales Tax36%
Franchise Tax5%
Occupancy Tax2%Investment Earnings9%
Miscellaneous2%
TOTAL REVENUES AND EXPENSES – BUSINESS-TYPE ACTIVITIES
$-
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
2023 2022
Revenues Expenses
10
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 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 $82,693,803. Of this total amount, $11,355,967 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 $12,000,941, while total fund balance was $19,237,616,
an increase of $2,170,717 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 investment earnings, property, and sales tax
revenues. 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 32.29% of total general fund
expenditures, not including capital outlay.
The debt service fund has a total fund balance of $1,113,858, all of which is restricted for the payment of debt service. The net decrease in fund balance during the current year in the debt service fund was $750,551. This decrease was due to regular principal and interest payments on long-term debt exceeding interest and sinking
property tax revenue during the year. Over time, however, the debt service fund has sufficient cash and equivalents
on hand to remain liquid if tax revenues decrease.
The capital projects fund has a total fund balance of $22,753,182, a decrease of $18,653,334. This was caused by
using bond proceeds during the year to fund construction projects.
11
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 $32,995,834, which is an increase of $6,952,706 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 $$399,681, 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 $37,906,916 and those for the Schertz EMS fund amounted to $1,234,050, which are 130% and
12% of fund operating costs, respectively.
The water and sewer fund reported an increase in net position of $17.8 million. Approximately three quarters 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 decreased net position by $403,518. Expenses increased by approximately $1.9 million
compared to the prior year. Revenues were consistent to the prior year as a result of approximately the same
number of ambulance runs in the prior year. Expenses increased primarily from increased salaries that resulted from
the compensation study discussed previously.
General Fund Budgetary Highlights
The general fund expenditures were $2,734,590 more than the $41,488,769 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 $1,379,545 more than budgeted, primarily due to increased
property and sales tax revenues. Overall, ending fund balance in the general fund was $4,113,646 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, 2023, amounts to $330,230,811 (net of accumulated depreciation), including several projects in
progress from voter approved bonds.
2023 2022 2023 2022 2023 2022
Land 15,214,261$ 8,883,427$ 2,415,102$ 2,415,017$ 17,629,363$ 11,298,444$ Water rights - - 70,245 70,245 70,245 70,245
Buildings and improvements 53,420,797 52,701,579 3,725,152 3,703,626 57,145,949 56,405,205
Machinery, equipment, and - vehicles 16,277,025 15,472,681 7,339,679 6,823,569 23,616,704 22,296,250
Infrastructure 175,473,306 136,194,073 137,700,969 115,715,584 313,174,275 251,909,657
Construction in progress 22,189,761 27,684,430 29,149,047 21,661,576 51,338,808 49,346,006 Accumulated depreciation (88,306,247) (80,963,743) (44,438,286) (41,517,395) (132,744,533) (122,481,138)
TOTALS 194,268,903$ 159,972,447$ 135,961,908$ 108,872,222$ 330,230,811$ 268,844,669$
Activities Activities Total
Governmental Business-Type
Significant capital asset activity for the year included improvements to streets and infrastructure of $66.5 million and land purchases of $6.3 million.
Additional information on the City's capital assets can be found in note II.F. to the basic financial statements.
12
LONG TERM DEBT
At the end of the current fiscal year, the City of Schertz had total long-term debt outstanding of $110,190,670. The
related principal and interest payment for the bonds are backed by an annual ad valorem tax levied against all
taxable property within the City. The City of Schertz maintains an "AA+" rating from Standard and Poor’s.
2023 2022 2023 2022 2023 2022
General obligation bonds 50,790,000$ 55,070,000$ 3,525,000$ 4,265,000$ 54,315,000$ 59,335,000$
Certificates of obligation 24,565,000 26,135,000 22,005,000 22,845,000 46,570,000 48,980,000
Financing arrangements 81,921 109,228 245,764 327,685 327,685 436,913
Premium on bonds 5,133,058 5,501,635 2,086,300 2,217,980 7,219,358 7,719,615
Compensated absences 1,259,918 1,200,065 498,709 364,852 1,758,627 1,564,917
TOTALS 81,829,897$ 88,015,928$ 28,360,773$ 30,020,517$ 110,190,670$ 118,036,445$
Activities Activities TotalGovernmentalBusiness-Type
Total debt decreased compared to the prior year due to scheduled bond principal payments.
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 fiscal year, the assigned and unassigned fund balance in the general fund increased to $15.5
million from $13.6 million. There was a decrease in fund balance budgeted of $1.1 million in the original adopted
budget but due to the above expected performance of investment income, commercial permits and sales taxes, the
city was able to increase the fund balance instead. The City of Schertz has appropriated $2.5 million of this increase
for spending in the 2024 fiscal year budget in accordance to the City’s fund balance policy. These funds will be spent
on street maintenance programs and front loading new operational programs. The approved tax rate decreased to
$0.4572 from $0.4950 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.
Industrial development continued to push North along IH-35 across FM 3009 with Phelan-Bennet filling 169,525 sq ft
of speculative warehouse distribution on Four Oaks Lane. Doerr Lane Logistics Center is complete and leased and
another Cavender and Hill Project, 3009 Distribution Center will add another 112,000 square foot
warehouse/distribution to the city, conveniently located off of FM 3009 near IH 35.
In Northern Schertz, redevelopment, expansion, and significant speculative development characterized 2023.
Caterpillar again invested in Schertz bringing the total investment to an estimated $70,000,000 and settling on 194
jobs total with two new manufacturing lines. Sysco Central Texas site continued to produce for Schertz, taking
advantage of the economic development incentives to secure their 100,000 sq ft expansion of their existing facility,
currently under construction. The Economic Development Corporation also took steps to secure the funding for
waste water infrastructure for a large portion of Schertz, on the north side of IH 35 and close to our border with New
Braunfels.
Staff will continue to watch as the economy slows down. During COVID and the great recession, property values
continued to rise and no discernable impacts of foreclosures. Sales taxes have been recession resistant in Schertz
due to the business types and markets however, new residential development has slowed down over the past few years. Staff is factoring this in its 5-year forecast for slower growth.
Overall, the City of Schertz continues to be an extremely attractive option as a center for logistics and distribution.
Accelerated by the rising demand for delivery to consumers and changes in supply chain management philosophy
moving from “just in time” to “just in case,” Schertz’ location along IH-35 and IH-10 corridor continues to be a
strong advantage.
Requests for Information
This financial report is designed to provide a general overview of the City's finances for all those with an interest in
the government's finances. Questions concerning any of the information provided in this report or requests for
additional financial information should be addressed to the Office of the Finance Director, City of Schertz, 1400
Schertz Parkway, Schertz, Texas 78154.
BASIC
FINANCIAL STATEMENTS
Governmental Business-Type
Activities Activities Total
ASSETSCash and cash equivalents 84,610,716$ 22,402,988$ 107,013,704$
Investments 4,691,975 1,183,797 5,875,772 Internal balances (91,499) 91,499 -
Receivables, net of allowances:Taxes 4,700,323 - 4,700,323
Accounts and other 1,923,618 7,717,829 9,641,447 Accrued interest - 6,324 6,324 Inventories 342,248 225,637 567,885
Restricted assets:Cash and cash equivalents 598,112 13,352,366 13,950,478
Service concession arrangement receivable: Due within one year 90,909 - 90,909
Due in more than one year 645,760 - 645,760 Investment in joint venture - 19,593,276 19,593,276
Capital assets:Land 15,214,261 2,415,102 17,629,363 Water rights - 70,245 70,245
Buildings and improvements 53,420,797 3,725,152 57,145,949 Equipment and vehicles 16,277,025 7,339,679 23,616,704
Infrastructure 175,473,306 137,700,969 313,174,275 Construction in progress 22,189,761 29,149,047 51,338,808
Accumulated depreciation (88,306,247) (44,438,286) (132,744,533)
Total Assets 291,781,065 200,535,624 492,316,689
DEFERRED OUTFLOWS OF RESOURCESDeferred loss on debt refunding 449,467 6,363 455,830
Deferred OPEB related outflows 543,637 181,794 725,431 Deferred pension related outflows 8,435,064 2,820,691 11,255,755
Total Deferred Outflows of Resources 9,428,168 3,008,848 12,437,016
LIABILITIESAccounts payable 3,924,413 5,326,209 9,250,622
Accrued liabilities 529,285 173,298 702,583 Retainage payable 36,284 468,045 504,329
Due to other governments 31,357 - 31,357 Unearned revenue 7,260,753 495,361 7,756,114 Accrued interest payable 455,705 167,430 623,135 Customer deposits 6,652 624,849 631,501
Primary Government
CITY OF SCHERTZ, TEXAS
STATEMENT OF NET POSITION
SEPTEMBER 30, 2023
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 251,984$ 99,742$ 351,726$
Total OPEB liability 59,711 19,967 79,678 Service concession arrangement 55,241 - 55,241
Long-term debt 5,877,307 1,711,921 7,589,228
Due in more than one year:
Compensated absences 1,007,934 398,967 1,406,901 Total OPEB liability 2,195,760 734,264 2,930,024 Net pension liability 18,574,745 6,211,410 24,786,155 Service concession arrangement 392,398 - 392,398
Long-term debt 74,692,672 26,150,143 100,842,815
Total Liabilities 115,352,201 42,581,606 157,933,807
DEFERRED INFLOWS OF RESOURCES
Deferred service concession arrangement 289,030 - 289,030
Deferred OPEB related inflows 979,343 327,493 1,306,836 Deferred pension related inflows 66,463 22,226 88,689
Total Deferred Inflows of Resources 1,334,836 349,719 1,684,555
NET POSITIONNet investment in capital assets 136,442,093 114,831,425 251,273,518
Restricted for:Police and municipal court 674,628 - 674,628
PEG capital fees 884,536 - 884,536 Tourism development 2,616,414 - 2,616,414 Economic development 33,395,515 - 33,395,515 Parks and tree mitigation 785,703 - 785,703 Debt service 867,965 - 867,965
Scholarships and other purposes 1,086,357 - 1,086,357 Construction - 6,640,756 6,640,756
Unrestricted 7,768,985 39,140,966 46,909,951
Total Net Position 184,522,196$ 160,613,147$ 345,135,343$
Primary Government
CITY OF SCHERTZ, TEXAS
STATEMENT OF NET POSITION
SEPTEMBER 30, 2023
14
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions
Primary government:
Governmental activities:
General government 8,244,956$ 470,879$ 1,683,811$ -$
Public safety 22,195,399 4,067,387 734,606 -
Public environment 6,188,351 661,078 - 18,456,911
Parks and recreation 4,253,278 753,302 - -
Cultural 1,380,793 315,222 7,520 -
Administration 5,363,700 - - - Interest 2,555,917 - - -
Total Governmental Activities 50,182,394 6,267,868 2,425,937 18,456,911
Business-type activities:
Water and sewer 30,088,159 31,589,783 - 14,180,619 EMS 10,176,945 9,503,821 - -
Total Business-Type Activities 40,265,104 41,093,604 - 14,180,619
Total Primary Government 90,447,498$ 47,361,472$ 2,425,937$ 32,637,530$
General revenues:
Taxes:
Ad valorem
SalesFranchise fees
Hotel/motel
Mixed drink
Investment earnings
Miscellaneous
Transfers
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, 2023
The accompanying notes are an integral part
of these financial statements.15
Governmental Business-Type
Activities Activities Total
(6,090,266)$ -$ (6,090,266)$
(17,393,406) - (17,393,406)
12,929,638 - 12,929,638
(3,499,976) - (3,499,976)
(1,058,051) - (1,058,051)
(5,363,700) - (5,363,700) (2,555,917) - (2,555,917)
(23,031,678) - (23,031,678)
- 15,682,243 15,682,243 - (673,124) (673,124)
- 15,009,119 15,009,119
(23,031,678) 15,009,119 (8,022,559)
25,118,429 - 25,118,429
19,646,841 - 19,646,841 2,593,660 - 2,593,660
1,059,808 - 1,059,808
88,347 - 88,347
4,678,690 1,927,277 6,605,967
820,465 479,479 1,299,944
591 (591) -
54,006,831 2,406,165 56,412,996
30,975,153 17,415,284 48,390,437
153,547,043 143,197,863 296,744,906
184,522,196$ 160,613,147$ 345,135,343$
Primary Government
Net (Expense) Revenue and Changes in Net Position
16
General Capital Projects Debt Service
Fund Fund Fund
ASSETS
Cash and cash equivalents 16,338,407$ 23,012,099$ 1,159,250$
Investments 2,438,934 - -
Receivables (net of allowances)
Taxes 3,352,850 - 164,420
Accounts and other 1,840,329 - -
Due from other funds 644,353 - -
Inventory 342,248 - -
Restricted assets:Cash and cash equivalents 598,112 - -
Total Assets 25,555,233 23,012,099 1,323,670
LIABILITIES
Accounts payable 3,522,925 253,110 -
Accrued salaries and benefits 529,285 - -
Retainage payable - 5,807 -
Customer deposits 6,652 - -
Due to other governments 31,357 - -
Due to other funds 91,499 - -
Unearned revenues 52,765 - -
Total Liabilities 4,234,483 258,917 -
DEFERRED INFLOWS OF RESOURCESUnavailable revenues 2,083,134 - 209,812
Total Deferred Inflows of Resources 2,083,134 - 209,812
FUND BALANCES
Nonspendable for:
Inventory 342,248 - -
Restricted for:
Police and public safety/municipal court 355,469 - -
Municipal court 786,902 - -
PEG capital fees 884,536 - -
Capital improvement - 19,318,324 -
Debt service - - 1,113,858
Tourism development - - -
Parks and tree mitigation - - -
Historical Committee and library - - -
Economic development - - -
Animal control 44,690 - -
Scholarships 149,097 - -
Committed for:
Capital Projects - 3,434,858 - Civic Center/SIED 1,155,078 - -
Assigned for:
Property replacement 954,151 - -
Subsequent year's budget 2,564,504 - -
Unassigned 12,000,941 - -
Total Fund Balances 19,237,616 22,753,182 1,113,858
Total Liabilities, Deferred Inflows of Resources,
and Fund Balances 25,555,233$ 23,012,099$ 1,323,670$
SEPTEMBER 30, 2023
GOVERNMENTAL FUNDS
BALANCE SHEET
CITY OF SCHERTZ, TEXAS
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
29,560,533$ 7,723,892$ 6,816,535$ 84,610,716$
2,253,041 - - 4,691,975
1,183,053 - - 4,700,323
7,949 - 75,340 1,923,618
- - - 644,353
- - - 342,248
- - - 598,112
33,004,576 7,723,892 6,891,875 97,511,345
8,742 85,746 53,890 3,924,413
- - - 529,285
- 30,477 - 36,284
- - - 6,652
- - - 31,357
- - 644,353 735,852
- 7,207,988 - 7,260,753
8,742 7,324,211 698,243 12,524,596
- - - 2,292,946
- - - 2,292,946
- - - 342,248
- - 319,159 674,628
- - - 786,902
- - - 884,536
- - 3,011,662 22,329,986
- - - 1,113,858
- - 2,616,414 2,616,414
- - 785,703 785,703
- - 105,668 105,668
32,995,834 399,681 - 33,395,515
- - - 44,690
- - - 149,097
- - - 3,434,858 - - - 1,155,078
- - - 954,151
- - - 2,564,504
- - (644,974) 11,355,967
32,995,834 399,681 6,193,632 82,693,803
33,004,576$ 7,723,892$ 6,891,875$ 97,511,345$
18
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Total Fund Balances - Governmental Funds 82,693,803$
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.194,268,903
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.(76,696,839)
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.(455,705)
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 (5,133,058)
Deferred loss 449,467
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.2,292,946
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 (18,574,745)
Deferred outflows related to pensions 8,435,064
Deferred inflows related to pensions (66,463)
Total OPEB liability (2,255,471)
Deferred outflows related to OPEB 543,637
Deferred inflows related to OPEB (979,343)
Net Position of Governmental Activities 184,522,196$
CITY OF SCHERTZ, TEXAS
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
SEPTEMBER 30, 2023
The accompanying notes are an integral part
of these financial statements.19
General Capital Projects Debt Service
Fund Fund FundREVENUES
Taxes 33,136,640$ -$ 7,710,299$
Permits and fees 2,077,759 - -
Service fees 2,124,689 - -
Fines and fees 448,805 - - Intergovernmental 2,319,760 201,621 -
Investment earnings 1,050,211 1,601,296 105,398
Miscellaneous 636,278 - 181,935
Total Revenues 41,794,142 1,802,917 7,997,632
EXPENDITURES
Current:
General government 6,943,385 - -
Public safety 19,492,971 - - Public environment 1,782,809 - -
Parks and recreation 3,134,333 - -
Cultural 1,277,825 - -
Administration 4,538,699 - -
Capital outlay 1,584,157 21,307,128 - Debt service:
Principal - - 5,850,000
Interest and fiscal charges - - 2,893,986
Bond issue costs - - 4,200
Total Expenditures 38,754,179 21,307,128 8,748,186
Excess (Deficiency) of Revenues
Over Expenditures 3,039,963 (19,504,211) (750,554)
OTHER FINANCING SOURCES (USES)
Transfers in - 850,880 3 Transfers out (869,246) (3) -
Total Other Financing Sources (Uses)(869,246) 850,877 3
NET CHANGE IN FUND BALANCE 2,170,717 (18,653,334) (750,551)
FUND BALANCES - BEGINNING 17,066,899 41,406,516 1,864,409
FUND BALANCES - ENDING 19,237,616$ 22,753,182$ 1,113,858$
FOR THE YEAR ENDED SEPTEMBER 30, 2023
GOVERNMENTAL FUNDS
AND CHANGES IN FUND BALANCES
STATEMENT OF REVENUES, EXPENDITURES
CITY OF SCHERTZ, TEXAS
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
6,548,941$ -$ 1,059,808$ 48,455,688$
- - 251,565 2,329,324
- - 681,595 2,806,284
- - 211,080 659,885 - 504,579 35,671 3,061,631
1,262,346 376,272 283,167 4,678,690
- - 2,252 820,465
7,811,287 880,851 2,525,138 62,811,967
264,776 - 116,815 7,324,976
- - 86,793 19,579,764 - - - 1,782,809
- - 93,032 3,227,365
- - 17,123 1,294,948
593,805 - 69,915 5,202,419
- 515,788 735,021 24,142,094
- - - 5,850,000
- - - 2,893,986
- - - 4,200
858,581 515,788 1,118,699 71,302,561
6,952,706 365,063 1,406,439 (8,490,594)
- - 18,957 869,840 - - - (869,249)
- - 18,957 591
6,952,706 365,063 1,425,396 (8,490,003)
26,043,128 34,618 4,768,236 91,183,806
32,995,834$ 399,681$ 6,193,632$ 82,693,803$
21
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Net Changes in Fund Balances - Governmental Funds (8,490,003)$
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 42,437,393 Depreciation expense (7,342,504)
The net effect of miscellaneous transactions involving capital assets (i.e.,sales,
trade-ins, or donations) is to decrease net position.(798,433)
Revenues in the Statement of Activities that do not provide current financial
resources are not reported as revenues in the funds.
Property taxes 38,302
Court fines 51,397
The issuance of long-term debt (e.g.bonds)provides current financial resources to
governmental funds,while the repayment of the principal of long-term debt
consumes the current financial resources of governmental funds.Neither
transaction,however,has any effect on net position.Also,governmental funds
report the effect of premiums,discounts,and similar items when debt is first
issued,whereas the amounts are deferred and amortized in the Statement of
Activities.
Repayment of principal of long-term debt 6,245,884
Amortization of loss on refunding (57,272)
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 (59,853)
Net pension liability (970,449)
Total OPEB liability (110,273)
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.30,964
Change in Net Position of Governmental Activities 30,975,153$
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, 2023
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 21,699,922$ 703,066$ 22,402,988$ -$
Investments 1,183,797 - 1,183,797 -
Accounts receivable, net of allowance:
Customer accounts 3,524,433 4,193,396 7,717,829 -
Due from other funds 91,499 - 91,499 -
Accrued interest 6,324 - 6,324 -
Inventory 126,636 99,001 225,637 -
Total Current Assets 26,632,611 4,995,463 31,628,074 -
Noncurrent assets:
Restricted assets:
Cash and cash equivalents 13,352,366 - 13,352,366 -
Investment in joint ventures 19,593,276 - 19,593,276 -
Capital assets:
Land 2,415,102 - 2,415,102 -
Water rights 70,245 - 70,245 -
Buildings and improvements 3,630,652 94,500 3,725,152 -
Machinery, equipment, and vehicles 3,705,968 3,633,711 7,339,679 -
Infrastructure 137,700,969 - 137,700,969 -
Construction in progress 29,149,047 - 29,149,047 -
Less: accumulated depreciation (42,241,604) (2,196,682) (44,438,286) -
Total Noncurrent Assets 167,376,021 1,531,529 168,907,550 -
Total Assets 194,008,632 6,526,992 200,535,624 -
DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on refunding 6,363 - 6,363 -
Deferred OPEB related outflows 53,973 127,821 181,794 -
Deferred pension related outflows 837,427 1,983,264 2,820,691 -
Total Deferred Outflows of Resources 897,763 2,111,085 3,008,848 -
Business-Type
Activities
Enterprise Funds
CITY OF SCHERTZ, TEXAS
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
SEPTEMBER 30, 2023
The accompanying notes are an integral part
of these financial statements.23
Governmental
Activities
Total
Water and Schertz Enterprise Internal
Sewer System EMS Fund Service FundLIABILITIES
Current liabilities:
Accounts payable 5,090,731$ 235,478$ 5,326,209$ -$
Accrued liabilities 38,046 135,252 173,298 -
Retainage payable 468,045 - 468,045 -
Customer deposits 624,849 - 624,849 -
Accrued interest 167,430 - 167,430 -
Unearned revenue 493,926 1,435 495,361 -
Current portion of long-term liabilities:
Compensated absences 28,379 71,363 99,742 -
Total OPEB liability 5,928 14,039 19,967 -
Long-term debt 1,630,000 81,921 1,711,921 -
Total Current Liabilities 8,547,334 539,488 9,086,822 -
Noncurrent liabilities:
Compensated absences 113,517 285,450 398,967 -
Total OPEB liability 217,994 516,270 734,264 -
Net pension liability 1,844,090 4,367,320 6,211,410 -
Long-term debt 25,986,300 163,843 26,150,143 -
Total Noncurrent Liabilities 28,161,901 5,332,883 33,494,784 -
Total Liabilities 36,709,235 5,872,371 42,581,606 -
DEFERRED INFLOWS OF RESOURCES
Deferred OPEB related inflows 97,229 230,264 327,493 -
Deferred pension related inflows 6,599 15,627 22,226 -
Total Deferred Inflows of Resources 103,828 245,891 349,719 -
NET POSITION
Net investment in capital assets 113,545,660 1,285,765 114,831,425 -
Restricted for construction 6,640,756 - 6,640,756 -
Unrestricted 37,906,916 1,234,050 39,140,966 -
Total Net Position 158,093,332$ 2,519,815$ 160,613,147$ -$
Business-Type
Activities
Enterprise Funds
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
SEPTEMBER 30, 2023
CITY OF SCHERTZ, TEXAS
24
Governmental
Activities
Total Internal
Water and Schertz Enterprise Service
Sewer System EMS Funds Fund
OPERATING REVENUES
Fees charged to users 31,283,976$ 9,503,821$ 40,787,797$ -$
Charges for premiums - - - 4,916,591
Other charges 22,365 - 22,365 -
Miscellaneous 252,624 226,855 479,479 -
Total Operating Revenues 31,558,965 9,730,676 41,289,641 4,916,591
OPERATING EXPENSES
Personnel services 3,133,344 7,495,019 10,628,363 4,916,591
General and administrative 3,437,318 826,089 4,263,407 -
Contractual services 19,339,339 725,326 20,064,665 -
Supplies and maintenance 484,010 684,047 1,168,057 -
Depreciation 2,806,641 446,464 3,253,105 -
Total Operating Costs 29,200,652 10,176,945 39,377,597 4,916,591
Operating Income (Loss)2,358,313 (446,269) 1,912,044 -
NON-OPERATING REVENUES (EXPENSES)
Investment revenue 1,884,526 42,751 1,927,277 -
Rent revenue 283,442 - 283,442 -
Interest expense (887,507) - (887,507) -
Total Non-Operating Revenues (Expenses)1,280,461 42,751 1,323,212 -
Income before contributions and transfers 3,638,774 (403,518) 3,235,256 -
Transfers out (591) - (591) -
Capital contributions - impact fees 1,198,349 - 1,198,349 -
Capital contributions - dedicated assets 12,982,270 - 12,982,270 -
CHANGE IN NET POSITION 17,818,802 (403,518) 17,415,284 -
NET POSITION - BEGINNING 140,274,530 2,923,333 143,197,863 -
NET POSITION - END OF YEAR 158,093,332$ 2,519,815$ 160,613,147$ -$
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, 2023
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 31,518,539$ 9,346,596$ 40,865,135$ -$
Cash received from interfund services - - - 4,916,591
Cash paid to employees for services (2,958,336) (6,901,662) (9,859,998) (4,916,591)
Cash paid to suppliers for goods and services (22,633,252) (2,196,378) (24,829,630) -
Net Cash Provided By Operating Activities 5,926,951 248,556 6,175,507 -
CASH FLOWS FROM NON-CAPITAL FINANCING
ACTIVITIES
Transfers from other funds - 16,139 16,139 -
Transfers to other funds (92,090) - (92,090) -
Net Cash Used in Non-Capital Financing Activities (92,090) 16,139 (75,951) -
CASH FLOWS FROM CAPITAL & RELATED FINANCING
ACTIVITIES
Acquisition and construction of capital assets (16,906,407) (454,114) (17,360,521) -
Capital contributions - impact fees 1,198,349 - 1,198,349 -
Interest paid on long-term debt (1,018,794) - (1,018,794) -
Principal paid on long-term debt (1,580,000) (81,921) (1,661,921) -
Net Cash Used in Capital and Related
Financing Activities (18,306,852) (536,035) (18,842,887) -
CASH FLOWS FROM INVESTING ACTIVITIES
Sale of investments 1,830,795 - 1,830,795 -
Payments from rentals 283,442 - 283,442 -
Interest and investment earnings 1,884,526 42,751 1,927,277 -
Net Cash Provided By (Used in) Investing Activities 3,998,763 42,751 4,041,514 -
Net (Decrease) Increase in Cash and Cash Equivalents (8,473,228) (228,589) (8,701,817) -
Cash and cash equivalents at beginning 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 -
Cash and cash equivalents at end of year
Cash and cash equivalents 21,699,922 703,066 22,402,988 -
Restricted cash and cash equivalents 13,352,366 - 13,352,366 -
35,052,288$ 703,066$ 35,755,354$ -$
Enterprise Funds
CITY OF SCHERTZ, TEXAS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2023
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)2,358,313$ (446,269)$ 1,912,044$ -$
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities:
Depreciation 2,806,641 446,464 3,253,105 -
Change in investment in joint venture (1,412,676) - (1,412,676) -
Decrease (increase) in accounts receivable (42,561) (384,403) (426,964) -
Decrease (increase) in inventory (27,534) 20,315 (7,219) -
Decrease (increase) in accounts receivable - 2,311 2,311 -
Decrease (increase) in inventory (532,946) (1,299,635) (1,832,581) -
Decrease (increase) in accounts receivable 7,949 11,273 19,222 -
Increase (decrease) in accounts payable 2,067,625 16,458 2,084,083 -
Increase (decrease) in accrued liabilities 16,329 - 16,329 -
Increase (decrease) in customer deposits (23,458) - (23,458) -
Increase (decrease) in unearned revenue 25,593 323 25,916 -
Increase (decrease) in compensated absences 16,673 117,184 133,857 -
Increase (decrease) in net pension liability 1,002,386 2,477,501 3,479,887 -
Increase (decrease) in deferred OPEB inflows 57,175 140,312 197,487 -
Increase (decrease) in deferred pension inflows (346,045) (776,139) (1,122,184) -
Increase (decrease) in total OPEB liability (46,513) (77,139) (123,652) -
Net cash provided by operating activities 5,926,951$ 248,556$ 6,175,507$ -$
SCHEDULE OF NON-CASH CAPITAL ACTIVITIES
Developer contributions of capital assets 12,982,270 - 12,982,270 -
Total non-cash capital activities 12,982,270$ -$ 12,982,270$ -$
Activities
Enterprise Funds
FOR THE YEAR ENDED SEPTEMBER 30, 2023
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, 2023
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. Elimination 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 receivables are reported net of allowances for uncollectible accounts. The allowance account
represents management's estimate of uncollectible accounts based upon experience and historical trends.
31
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
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.
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
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.
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• 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.
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.
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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.
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.
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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, 2023, the City has a deficit unassigned fund balance of $644,974 in the Grant Fund. This
deficit is due to timing differences between expenditures and reimbursements of grant funds.
S. Budgetary Information
Annual budgets are adopted on a basis consistent with generally accepted accounting principles for all
governmental funds except the American rescue plan act fund, library advisory board fund, grant special
revenue fund, police department forfeiture special revenue fund and the capital projects fund, which adopts
project-length budgets.
II. DETAILED NOTES ON ALL FUNDS AND ACTIVITIES
A. Cash, Cash Equivalents and Investments
As of September 30, 2023, the City had the following cash, cash equivalents and investments:
Reported Weighted Average
Value Maturity (days)
Investment type:
LOGIC 45,184,902$ 39
Lone Star Investment Pool 28,596,255 21
Texas CLASS 43,105,965 23
Certificates of Deposit 3,436,837 79
U.S. Agency Securities 2,402,680 487
Subtotal 122,726,639
Plus: depository and petty cash 4,113,315
Total cash and investments 126,839,954$
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.
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, 2023, 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, 2023, the City’s investments in debt securities
were rated BBB+ by Standard & Poor’s.
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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, 2023, 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, 2023, was $0.4950 per $100 of assessed
value.
However, the City may not adopt a tax rate that exceeds the tax rate calculated in accordance with the
Texas Property Tax Code without holding a public hearing. The Property Tax Code subjects an increase in
the effective tax rate to a referendum election, if petitioned by registered voters, when the effective tax
rate increase is more than 3.5% of the previous year’s effective tax rate.
Property taxes are recorded as receivables and unearned revenues at the time the taxes are assessed. In
governmental funds, revenues are recognized as the related ad valorem taxes are collected. Additional
amounts estimated to be collectible in the time to be a resource for payment of obligations incurred during
the fiscal year and therefore susceptible to accrual in accordance with generally accepted accounting
principles have been recognized as revenue. In the government-wide financial statements, the entire levy
is recognized as revenue, net of estimated uncollectible amounts (if any), at the levy date.
C. Receivables
Receivables as September 30, 2023 for the government’s individual major funds and nonmajor funds in the
aggregate, including the applicable allowances for uncollectible accounts, are as follows:
General Economic Debt Nonmajor Water and SchertzFundDevelopmentServiceFundsSewer Fund EMSReceivables:
Property taxes 360,851$ -$ 174,915$ -$ -$ -$
Sales tax 2,366,106 1,183,053 - - - -
Occupancy taxes - - - 75,340 - -
Franchise taxes 622,754 - - - - -
Customers - - - - 3,610,656 11,773,966
Court fines 4,193,913 - - - - -
Other 165,240 7,949 - - - -
Gross receivables 7,708,864 1,191,002 174,915 75,340 3,610,656 11,773,966
Less: allowance for
uncollectible accounts (2,515,685) - (10,495) - (86,223) (7,580,570)
Net receivables 5,193,179$ 1,191,002$ 164,420$ 75,340$ 3,524,433$ 4,193,396$
Governmental Activities Business-type Activities
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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 376,210$
Court fines 1,706,924
Total General Fund 2,083,134
Debt Service Fund
Delinquent property taxes receivable 209,812
Total Debt Service Fund 209,812
Total Governmental Funds 2,292,946$
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 449,467$ 6,363$ -$ 455,830$
Related to pensions 8,435,064 837,427 1,983,264 11,255,755
Related to OPEB - SDBF 173,543 17,230 40,803 231,576
Related to OPEB - Retiree
Health Plan 370,094 36,743 87,018 493,855
Total deferred outflow 9,428,168$ 897,763$ 2,111,085$ 12,437,016$
Deferred inflows:
Service concession arrangement 289,030$ -$ -$ 289,030
Related to pensions 66,463 6,599 15,627 88,689
Related to OPEB - SDBF 347,248 34,475 81,645 463,368
Related to OPEB - Retiree
Health plan 632,095 62,754 148,619 843,468
Total deferred inflow 1,334,836$ 103,828$ 245,891$ 1,684,555$
Business-type Activities
E. Interfund Balances and Transfers
The composition of interfund balances as of September 30, 2023, is as follows:
Due From Due To Amount Purpose
Nonmajor Governmental General 644,353$ Short-term pool cash loan
The following schedule briefly summarizes the City’s transfer activity for the year ending September 30,
2023:
Transfer From Transfer To Amount Purpose
General Nonmajor governmental 18,957$ Suplement funds sources
General Capital Projects 850,204 Funding for various capital projects
Capital Projects Debt Service 3 Suplement funds sources
General Capital Projects 85 Suplement funds sources
Water and Sewer System Capital Projects 591 Suplement funds sources
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F. Capital Assets Capital asset activity for the year ended September 30, 2023 was as follows:
Beginning Reclassifications/ EndingBalanceAdditions Retirements BalanceGovernmental activities:
Capital assets not being depreciated:Land 8,883,427$ 6,330,834$ -$ 15,214,261$ Construction in progress 27,684,430 19,536,469 (25,031,138) 22,189,761
Total capital assets not
being depreciated 36,567,857 25,867,303 (25,031,138) 37,404,022
Capital assets being depreciated:
Buildings and improvements 52,701,579 764,218 (45,000) 53,420,797 Machinery, equipment, and vehicles 15,472,681 1,133,948 (329,604) 16,277,025 Street and infrastructure 136,194,073 39,703,062 (423,829) 175,473,306
Total assets being depreciated 204,368,333 41,601,228 (798,433) 245,171,128
Less accumulated depreciation for:
Buildings and improvements (20,061,052) (1,688,963) - (21,750,015) Machinery, equipment, and vehicles (9,287,505) (1,268,419) - (10,555,924) Street and infrastructure (51,615,186) (4,385,122) - (56,000,308)
Total accumulated depreciation (80,963,743) (7,342,504) - (88,306,247)
Total capital assets being
depreciated, net 123,404,590 34,258,724 (798,433) 156,864,881
Governmental activities capital
assets, net 159,972,447$ 60,126,027$ (25,829,571)$ 194,268,903$
Beginning Reclassifications/ EndingBalanceAdditions Retirements BalanceBusiness-type activities:
Capital assets, not being depreciated:Land 2,415,017$ 85$ -$ 2,415,102$ Water rights 70,245 - - 70,245
Construction in progress 21,661,576 17,775,847 (10,288,376) 29,149,047
Total capital assets, not being
depreciated 24,146,838 17,775,932 (10,288,376) 31,634,394
Capital assets being depreciated:Buildings and improvements 3,703,626 21,526 - 3,725,152
Machinery, equipment, and vehicles 6,823,569 892,452 (376,342) 7,339,679
Infrastructure 115,715,584 21,985,385 - 137,700,969
Total assets being
depreciated 126,242,779 22,899,363 (376,342) 148,765,800
Less accumulated depreciation for:Buildings and improvements (1,279,892) (157,670) - (1,437,562)
Machinery, equipment, and vehicles (5,990,529) (728,555) 315,511 (6,403,573) Infrastructure (34,246,974) (2,350,177) - (36,597,151)
Total accumulated depreciation (41,517,395) (3,236,402) 315,511 (44,438,286)
Total capital assets being
depreciated, net 84,725,384 19,662,961 (60,831) 104,327,514
Business-type activities capital
assets, net 108,872,222$ 37,438,893$ (10,349,207)$ 135,961,908$
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Depreciation expense was charged to functions/programs of the primary government as follows: Governmental activities:
General government 767,874$ Public safety 1,183,347 Public environment 4,367,641
Parks and recreation 969,608
Cultural 46,324 Administration 7,710
Total 7,342,504$
Business-type activities:Water and sewer system 2,792,230$ EMS 444,172
Total 3,236,402$
Total Depreciation 10,578,906$
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 primarily by 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 $18.5 million. Additionally, certain obligations that were marketed as private placements have been separately identified; however, the terms of these obligations are not significantly different than other obligations and do not have substantive acceleration clauses. Should the City default on these bonds, any registered owner of the obligations is entitled to seek a writ of mandamus from a court of proper jurisdiction requiring the City to make payment.
Changes in long-term debt for the year ending September 30, 2023 are as follows:
Beginning Refunded/Ending Amount DueBalanceIssuedRetiredBalanceWithin One YearGovernmental activities:
General Obligation Bonds 49,375,000$ -$ (3,330,000)$ 46,045,000$ 3,415,000$ Certificates of Obligation 26,135,000 - (1,570,000) 24,565,000 1,455,000 General Obligation Bonds-Private Placement 5,695,000 - (950,000) 4,745,000 980,000
Premium from Debt 5,501,635 - (368,577) 5,133,058 - Financing Arrangement 109,228 - (27,307) 81,921 27,307 Compensated Absences 1,200,065 539,879 (480,026) 1,259,918 251,984
Total governmental 88,015,928$ 539,879$ (6,725,910)$ 81,829,897$ 6,129,291$
Business-type activities:General Obligation Bonds 3,630,000$ -$ (535,000)$ 3,095,000$ 560,000$
Certificates of Obligation 22,845,000 - (840,000) 22,005,000 855,000
General Obligation Bonds-
Private Placement 635,000 - (205,000) 430,000 215,000 Unamortized Premium 2,217,980 - (131,680) 2,086,300 - Financing Arrangement 327,685 - (81,921) 245,764 81,921
Compensated Absences 364,852 279,798 (145,941) 498,709 99,743
Total business-type 30,020,517$ 279,798$ (1,939,542)$ 28,360,773$ 1,811,664$
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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, 2023, the City does
not have bonds considered defeased and outstanding.
A summary of the terms of long-term debt outstanding at September 30, 2023, is as follows:
Issue
Amount Maturity Rate Balance
Governmental Activities
General Obligation Bonds
2014 Series, Refunding 8,450,000 2030 2.0% - 4.0%6,275,000
2015 Series, Refunding 4,185,000 2031 2.0% - 3.25%1,140,000
2016 Series 5,880,000 2036 2.0% - 4.0%4,095,000
2017 Series 3,935,000 2037 2.0% - 4.0%3,000,000
2018 Series, Refunding 5,830,000 2033 3.125% - 5%4,235,000
2020 Series, Refunding 7,555,000 2036 1.5% - 4%5,660,000
2021 Series, Refunding 4,070,000 2033 2% - 4%3,720,000
2022 Series 18,535,000 2042 4% - 5%17,920,000
Private Placement obligations
2007 Series GO 6,000,000 2027 4.07%1,570,000
2018 Series GO Refunding 6,035,000 2028 2.12%3,175,000
Certificates of Obligation
2016 Series A 2,375,000 2036 2.0% - 4.0%1,095,000
2016 Series B 1,475,000 2036 3.0% - 3.75%1,065,000
2017 Series 4,935,000 2037 3.0% - 3.75%3,205,000
2018 Series 4,845,000 2038 3.0% - 5.0%3,675,000
2019 Series 4,015,000 2039 2.5% - 5%2,970,000
2022 Series 4,740,000 2042 2% - 5%4,565,000
2022 Series A 8,265,000 2042 4% - 5%7,990,000
Total Governmental Long-Term Obligations 75,355,000$
Issue
Amount Maturity Rate Balance
Business-type Activities
General Obligation Bonds
2018 Series, Refunding 2,740,000 2026 3.125% - 5%1,295,000$
2021 Series, Refunding 1,945,000 2033 2% - 3%1,800,000
Certificates of Obligation
2018 Series 5,595,000 2028 3.0% - 5.0%4,620,000
2019 Series 3,480,000 2039 2.5% - 5%2,960,000
2022 Series 4,650,000 2042 2% - 5%4,500,000
2022 Series A 10,265,000 2042 1.5% - 5%9,925,000
Private Placement obligations2013 Series GO Refunding 2,130,000 2025 2.58%430,000
Total Business-Type Long-Term Obligations 25,530,000$
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Annual future debt service requirements of bonded debt as of September 30, 2023, are as follows:
Governmental activities:
Year EndedSeptember 30,Principal Interest Total Principal Interest Total
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 3,510,000 1,150,263 4,660,263 1,235,000 675,456 1,910,456
2029-2033 16,460,000 3,846,984 20,306,984 7,015,000 2,569,272 9,584,272
2034-2038 8,655,000 1,717,388 10,372,388 7,600,000 1,199,806 8,799,806
2039-2042 5,100,000 418,000 5,518,000 3,380,000 233,088 3,613,088
Total 46,045,000$ 12,991,810$ 59,036,810$ 24,565,000$ 7,923,535$ 32,488,535$
Year Ended
September 30,Principal Interest Total
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 4,745,000$ 301,670$ 5,046,670$
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
2024 560,000$ 106,150$ 666,150$ 855,000$ 846,313$ 1,701,313$
2025 595,000 78,825 673,825 890,000 803,813 1,693,813
2026 615,000 50,200 665,200 945,000 759,138 1,704,138
2027 175,000 32,150 207,150 985,000 712,263 1,697,263
2028 180,000 25,950 205,950 1,035,000 664,463 1,699,463
2029-2033 970,000 51,875 1,021,875 5,915,000 2,574,931 8,489,931
2034-2038 - - - 7,160,000 1,327,738 8,487,738
2039-2042 - - - 4,220,000 286,269 4,506,269
Total 3,095,000$ 345,150$ 3,440,150$ 22,005,000$ 7,974,926$ 29,979,926$
Year Ended
September 30, Principal Interest Total
2024 215,000$ 8,321$ 223,321$
2025 215,000 2,774 217,774
Total 430,000$ 11,095$ 441,095$
Certificates of Obligation
General Obligation Bonds
Private Placement Debt
General Obligation Bonds
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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
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 81,921$ 2,457$ 84,378$ 245,764$ 7,374$ 253,138$
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 18,574,745$ 1,844,090$ 4,367,320$ 24,786,155$
Total OPEB liability:
Due within one year:
TMRS SDBF 11,458$ 1,138$ 2,694$ 15,290$
Retiree health plan 48,253 4,790 11,345 64,388
Total due within one year 59,711 5,928 14,039 79,678
Due in more than one year:
TMRS SDBF 561,041 55,699 131,913 748,653
Retiree health plan 1,634,719 162,295 384,357 2,181,371
Total due in more than one year 2,195,760 217,994 516,270 2,930,024
Total OPEB liability 2,255,471$ 223,922$ 530,309$ 3,009,702$
Governmental Water/
Activities Sewer EMS Totals
Pension expense 970,449$ 123,395$ 401,727$ 1,495,571$
OPEB expense:
TMRS SDBF 23,471 4,551 19,120 47,142
Retiree Health Plan 86,802 14,060 55,326 156,188
Total OPEB expense 110,273$ 18,611$ 74,446$ 203,330$
Business-type Activities
Business-type Activities
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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, 2022 valuation and measurement date, the following employees were covered by the
benefit terms:
Inactive employees or beneficiaries currently receiving benefits 145
Inactive employees entitled to but not yet receiving benefits 294
Active employees 379
Total 818
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 16.36% and 16.40% in calendar years 2022 and 2023, respectively.
The City’s contributions to TMRS for the year ended September 30, 2023 were $4,349,322 and were equal
to the required contributions.
Net Pension Liability. The City’s Net Pension Liability (NPL) was measured as of December 31, 2022, and
the Total Pension Liability (TPL) used to calculate the Net Pension Liability was determined by an actuarial
valuation as of that date. The net pension liability is typically liquidated through the General Fund and
Enterprise Funds.
43
Actuarial Assumptions
The Total Pension Liability in the December 31, 2022, 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 weighing 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)
Global Equity 35.00%7.70%
Core fixed income 6.00%4.90%
Non-core fixed income 20.00%8.70%
Other Public and Private Markets 12.00%8.10%
Real estate 12.00%5.80%
Hedge Funds 5.00%6.90%
Private Equity 10.00%11.80%
Total 100.0%
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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, 2022:
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a)(b)(a)-(b)
Balance at 12/31/2021 92,926,641$ 81,459,290$ 11,467,351$
Changes for the year:
Service cost 4,576,714 - 4,576,714
Interest 6,323,215 - 6,323,215
Difference between expected
and actual experience 2,387,281 - 2,387,281
Change in assumptions - - -
Contributions - employer - 4,133,310 (4,133,310)
Contributions - employee - 1,783,798 (1,783,798)
Net investment income - (5,958,648) 5,958,648
Benefit payments, including refunds (3,075,473) (3,075,473) -
of employee contributions
Administrative expense - (51,455) 51,455
Other changes - 61,401 (61,401)
Net changes 10,211,737 (3,107,067) 13,318,804
Balance at 12/31/2022 103,138,378$ 78,352,223$ 24,786,155$
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 41,973,780$ 24,786,155$ 10,942,330$
Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions. For the year
ended September 30, 2023, the City recognized pension expense of $5,793,266. Also, as of September 30,
2023, the City reported deferred outflows of resources and deferred inflows of resources related to pensions
from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual
economic experience 2,516,875$ 88,689$
Changes in actuarial assumptions 60,695 -
Difference between projected and actual
investment earnings 5,398,546 -
Contributions subsequent to the measurement date 3,279,639 -
Total 11,255,755$ 88,689$
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$3,279,639 reported as deferred outflows of resources related to pensions resulting from contributions
subsequent to the measurement date will be recognized as a reduction of the net pension liability for the
year ending September 30, 2024. Other amounts reported as deferred outflows and inflows of resources
related to pensions will be recognized in pension expense as follows:
For the Year
Ended September 30,
2024 1,119,319$
2025 2,004,523
2026 2,132,376
2027 2,631,209
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, 2022, the valuation and measurement date, consisted of:
Inactive employees or beneficiaries currently receiving benefits 113
Inactive employees entitled to but not yet receiving benefits 78
Active employees 379
Total 570
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Contributions. The City contributes to the SDBF at a contractually required rate as determined by an
annual actuarial valuation, which was 0.22% for 2023 and 0.14% for 2022, of which 0.06% 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, 2023, were $15,299 representing contributions for both active
and retiree coverage, which equaled the required contributions each year.
Total OPEB Liability. The Total OPEB Liability in the December 31, 2022 actuarial valuation was
determined using the following actuarial assumptions and inputs:
Measurement year ended December 31,2022
Inflation rate 2.50% per annum
Discount rate 4.05%
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, 2022, 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 4.05% 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,
2022.
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 (4.05%)
in measuring the total OPEB liability.
1% Decrease in 1% Increase in
Discount Rate Discount Rate Discount Rate
(3.05%)(4.05%)(5.05%)
Total SDB OPEB Liability 937,388$ 763,943$ 631,700$
47
Changes in the Total OPEB Liability. Total City’s Total OPEB Liability (TOL), based on the above actuarial
factors, as of December 31, 2022, the measurement and actuarial valuation date, was calculated as follows:
Total OPEB
Liability
Balance at 12/31/2021 1,153,668$
Changes for the year:
Service cost 73,900
Interest 21,768
Difference between expected and actual experience (7,347)
Changes of assumptions or other inputs (462,756)
Benefit payments, including refunds of employee contributions (15,290)
Net changes (389,725)
Balance at 12/31/2022 763,943$
Changes in assumptions and other inputs reflect a change in the discount rate from 1.84% to 4.05%.
OPEB Expense and Deferred Inflows and Outflows of Resources Related to OPEB. For the year
ended September 30, 2023, the City recognized OPEB expense of $70,745. Also, as of September 30, 2023,
the City reported deferred outflows and inflows of resources related to the TMRS OPEB from the following
sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and
actual economic experience 27,345$ 53,924$
Changes in actuarial assumptions 192,069 409,444
Contributions subsequent to the measurement date 12,162 -
Total 231,576$ 463,368$
$12,162 reported as deferred outflows of resources related to OPEB resulting from contributions subsequent
to the measurement date will be recognized as a reduction of the Total OPEB liability for the year ending
September 30, 2024. Other amounts reported as deferred outflows and inflows of resources related to the
TMRS OPEB will be recognized in OPEB expense in future periods as follows:
For the Year
Ended September 30,
2024 (24,920)$
2025 (30,239)
2026 (36,365)
2027 (45,188)
2028 (66,457)
Thereafter (40,785)
City of Schertz Retiree Health Other Post-Employment Benefit Plan
In addition to the TMRS OPEB, The City administers a single employer defined benefit healthcare plan for
retirees, established under legal authority of the City Charter. The City is the only employer participating in
the Plan. The Plan does not issue a publicly available financial report.
48
The City provides post-employment benefits for eligible participants enrolled in City-sponsored plans. The
benefits are provided in the form of an implicit rate subsidy where the City contributes towards the retiree
health premiums before achieving Medicare eligibility. While the Plan offers retiree only rates, a very small
implicit liability still exists. Membership in the plan as of December 31, 2022, 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 $582 for retiree only to $2,056 for a retiree and their
family.
The City’s Retiree Health OPEB Liability (TOL) as of December 31, 2022, was calculated as follows:
Total OPEB
Liability
Balance at 12/31/2021 2,532,303$
Changes for the year:
Service cost 230,479
Interest 48,122
Difference between expected and actual experience (4,764)
Changes of assumptions or other inputs (495,992)
Benefit payments, including refunds of employee contributions (64,389)
Net changes (286,544)
Balance at 12/31/2022 2,245,759$
The actuarial valuation was performed as of December 31, 2021. Changes of assumptions reflect a change in
the discount rate from 1.84% as of December 31, 2021 to 4.05% as of December 31, 2022, 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 4.05% as well as what the
City’s TOL would be if it were calculated using a discount rate that is 1-percentage point lower (3.05%) and
1-percentage point higher (5.05%) than the current rate:
1% Decrease in 1% Increase in
Discount Rate Discount Rate Discount Rate
(3.05%)(4.05%)(5.05%)
Total OPEB liability - retiree health 2,458,112$ 2,245,759$ 2,053,109$
49
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 1,974,182$ 2,245,759$ 2,568,257$
For the year ended September 30, 2023, the City recognized OPEB expense of $234,324. Also, as of
September 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources
related to OPEB from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual economic experience 117,049$ 205,267$
Changes in actuarial assumptions 311,224 638,201
Contributions subsequent to the measurement date 65,582 -
Total 493,855$ 843,468$
$65,582 reported as deferred outflows of resources related to OPEB resulting from contributions subsequent
to the measurement date will be recognized as a reduction of the Total OPEB liability for the year ending
September 30, 2024. Other amounts reported as deferred outflows and inflows of resources related to the
City’s Retiree Health OPEB will be recognized in OPEB expense as follows:
For the Year
Ended September 30,
2024 (44,278)$
2025 (44,278)
2026 (44,278)
2027 (44,278)
2028 (52,557)
Thereafter (185,526)
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 4,128,161 for the year ended September 30, 2023. 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.
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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 $154,757,663 (as of September 30, 2022, 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
$18,725,100. This amount reflects the City’s portion of the net position of SSLGC as of September 30, 2022,
the most recent fiscal year for which information is available.
Cibolo Valley Local Government Corporation
The Cibolo Valley Local Government Corporation (CVLGC) is a public, nonprofit corporation 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, 2023. 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 $868,176 as of September 30, 2022.
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 $32,186,700 of the total $45,000,000. The
Zone has a statutory termination date of December 31, 2027. The TIRZ has collected $5,309,333 from
taxing entities (net of administrative reimbursements) and remitted $4,100,000 to the developer as of
September 30, 2023.
51
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, 2023, 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, 2023, the City had nine active incentive agreements.
On May 2, 2017, the City and the Corporation approved the Schertz Incentive Policy which outlines the
City’s primary tools to attract commercial investment and promote economic development. Projects are
selected on a case-by-case basis in accordance current policy and state laws at the discretion of the
governing body. All incentive agreements are formalized through a performance agreement with specified
terms and recapture criteria.
The SEDC Incentive program, authorized by Chapters 501, 502 and 505 of the Texas Local Government
Code, enables the Corporation to fund allowable projects from the collection of one-half of one percent of
sales tax proceeds collected in the City of Schertz. In accordance with state law, the SEDC Incentive Policy
establishes grants and loans for businesses that create Primary Jobs for the following categories: Existing
Businesses (3 years of operation within City), Small Businesses (fewer than 50 full-time jobs or annual sales
less than $10 million), Large Impact Businesses (Up to $100 million in taxable property), and Extra-Large
Businesses (over $100 million in taxable property).
The City and Corporation’s outstanding incentive agreement grants are as follows:
FY 2022-23 Amt. Est. Remaining Grant
SEDC - LGC 501.101 71,944$ 509,704$
SEDC - LGC 501.103 50,000 13,028,000
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 $736,669. 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, 2023, 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 $736,669 on the government-wide
statements at year-end pursuant to the service concession arrangement, and a liability of $392,398 for the
present value of maintenance costs estimated over the life of the Service Concession arrangement. The
balance of these two amounts is recorded as a deferred inflow of resources.
52
Litigation
The City is the subject of various claims and litigation that have arisen in the course of its operations.
Management is of the opinion that the City’s liability in these cases, if decided adversely to the City, will not
have a material effect on the City’s financial position.
Cibolo Creek Municipal Authority
The Cibolo Creek Municipal Authority (CCMA) provides sewage treatment for the area in and around the City.
In fiscal year 2014, the City entered into an agreement with CCMA to construct a sewage treatment facility
in the southern portion of the City to primarily serve citizens of the City but also neighboring Cities and
future development. Because the City would be the primary customer at this time, the agreement stipulates
that the City will pay all future debt service on the bonds issued by CCMA to finance the project. The City is
the sole member at this time, so it is responsible for 100% of the project costs. Should other members join,
the City’s share of the costs would be reduced.
Future commitments to CCMA are as follows:
Year Ended
September 30,
2024 715,050$
2025 714,050
2026 710,850
2027 717,200
2028 712,650
2029-2033 3,569,100
2034-2038 3,567,950
2039-2043 3,571,600
2044 712,400
Total 14,990,850$
53
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 CommitmentGovernmental Activities:
FM 78 and Main Street 3,283,216$ 1,237,979$ 2,045,237$ FM 2252 Water Relocation 275,000 235,844 39,156
SCADA Upgrade 189,000 18,725 170,275
Lookout Rd Signalization 60,000 42,233 17,767
Lookout Rd Reconstruction 330,000 222,959 107,041
Fire Station 4 762,168 755,952 6,216 Badge Access Upgrade 65,639 44,280 21,359
Great N Trail 2 160,000 56,911 103,089 Energy Efficient Projects 1,264,323 14,323 1,250,000
Total Governmental Commitments 6,389,346 2,629,206 3,760,140
Business-Type Activities:
Woman Hollering WasteWater 13,252,837 10,864,028 2,388,809
E Live Oak Pump Additions 1,603,509 1,602,509 1,000 Corbett Ground Storage 8,673,060 1,305,635 7,367,425
Riata Lift Station Relocation 143,000 131,541 11,459
E Live Oak -IH35 24" Line 1,806,076 1,330,233 475,843
FM1518 Utility Relocation 2,128,920 1,789,828 339,092
Loop Lines Project 1 200,000 121,265 78,735
Total Business-Type Activities 27,807,402 17,145,039 10,662,363
Total Estimated Future Commitments 34,196,748$ 19,774,245$ 14,422,503$
Risk Management
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets;
errors and omissions; and natural disasters. The City contracts with the Texas Municipal League
Intergovernmental Risk Pool, a public entity risk pool currently operating as a common risk management and
insurance program providing insurance coverage in the following areas: general liability, automobile liability
and physical damage, law enforcement liability, worker's compensation, real and personal property, mobile
equipment, and errors and omissions liability. TML is a multi-employer group that provides for a
combination of risk sharing among pool participants and stop loss coverage. Contributions are set annually
by the provider. Liability by the City is generally limited to the contributed amounts. There were no
significant increases or decreases in coverage from the prior year. For the past three fiscal years, no claims
or settlements have exceeded deductible amounts. E. New Accounting Guidance
Significant new accounting guidance issued by the Governmental Accounting Standards Board (GASB) not
yet implemented by the City include the following:
The Government Accounting Standards Board (GASB) has amended the existing standards regarding
capitalization thresholds for assets. The amended guidance for the capitalization threshold comes from GASB
Implementation Guide 2021-1, Question 5.1. Capitalization policies adopted by governments include many
considerations such as finding an appropriate balance between ensuring that all significant capital assets,
collectively, are capitalized and minimizing the cost of recordkeeping for capital assets. A government should
capitalize assets whose individual acquisition costs are less than the threshold for an individual asset if those
assets in the aggregate are significant. Computers, classroom furniture and library books are examples of
asset types that may not meet a capitalization policy on an individual basis yet could be significantly
collectively. In this example, if the $150,000 aggregate amount (100 computers costing $1,500 each) is
significant, the government should capitalize the computers. The amended guidance is effective for reporting
periods beginning after June 15, 2023, and the impact has not yet been determined.
54
GASB Statement No. 99, Omnibus 2022 – The objective of this Statement is to correct practice issues
identified during implementation and application of certain GASB Statements and financial reporting for
financial guarantees. There are various effective dates 1.) upon issuance 2.) fiscal years beginning after June
15, 2022, and 3.) fiscal years beginning after June 15, 2023.
GASB Statement No. 100, Accounting Changes and Error Corrections—an amendment of GASB Statement
No. 62 - The primary objective of this Statement is to enhance accounting and financial reporting
requirements for accounting changes and error corrections to provide more understandable, reliable,
relevant, consistent, and comparable information for making decisions or assessing accountability. This
Statement will become effective for reporting periods beginning after June 15, 2023, and the impact has
not yet been determined.
GASB Statement No. 101, Compensated Absences - The objective of this Statement is to better meet the
information needs of financial statement users by updating the recognition and measurement guidance for
compensated absences. That objective is achieved by aligning the recognition and measurement guidance
under a unified model and by amending certain previously required disclosures. This Statement will
become effective for reporting periods beginning after December 15, 2023, and the impact has not yet
been determined.
THIS PAGE LEFT BLANK INTENTIONALLY
REQUIRED
SUPPLEMENTARY INFORMATION
Variance With
Final Budget
Original Final Actual Positive
Budget Budget Amounts (Negative)
REVENUES
Taxes 33,237,400$ 33,237,400$ 33,136,640$ (100,760)$
Permits and fees 1,763,420 1,763,420 2,077,759 314,339
Service fees 1,896,334 1,896,334 2,124,689 228,355
Fines and fees 694,450 694,450 448,805 (245,645)
Intergovernmental 1,934,268 1,934,268 2,319,760 385,492
Investment earnings 275,000 275,000 1,050,211 775,211
Miscellaneous 613,725 613,725 636,278 22,553
Total Revenues 40,414,597 40,414,597 41,794,142 1,379,545
EXPENDITURES
General government:
Council 133,870 133,870 119,967 13,903
City manager 1,379,658 1,379,658 1,217,444 162,214
Municipal court 416,604 416,702 414,254 2,448
311 customer relations 121,062 121,062 130,382 (9,320)
Planning & zoning 376,096 376,096 339,307 36,789
Legal 137,200 137,200 69,233 67,967
City secretary 233,574 265,574 199,001 66,573
Nondepartmental 2,846,352 2,846,352 2,522,461 323,891
Public affairs 662,484 662,484 612,060 50,424
Engineering 1,263,845 1,263,845 1,065,116 198,729
Citizens assistance 339,806 339,806 288,081 51,725
Special events 24,000 24,000 47,750 (23,750)
Total General Government 7,934,551 7,966,649 7,025,056 941,593
Public safety:
Police department 12,279,644 12,279,644 11,422,254 857,390
Fire department 7,653,804 7,653,804 7,756,540 (102,736)
Inspection 1,271,297 1,271,297 1,141,246 130,051
Total Public Safety 21,204,745 21,204,745 20,320,040 884,705
Public environment:
Streets 2,587,507 2,587,507 2,278,233 309,274
Total Public Environment 2,587,507 2,587,507 2,278,233 309,274
Parks and recreation:
Parks 2,312,157 2,312,157 2,064,222 247,935
Pools 580,824 580,824 562,063 18,761
Community/Civic Center 466,985 466,985 523,587 (56,602)
Total Parks and Recreation 3,359,966 3,359,966 3,149,872 210,094
Cultural:
Library 1,292,795 1,292,795 1,277,825 14,970
Total Cultural 1,292,795 1,292,795 1,277,825 14,970
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
GENERAL FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2023
55
Variance With
Final Budget
Original Final Actual Positive
Budget Budget Amounts (Negative)
EXPENDITURES (CONTINUED)
Administration:
Information technology 3,063,097 3,063,097 2,884,167 178,930
Human resources 768,340 768,340 750,341 17,999
Finance 755,468 755,468 729,239 26,229
Purchasing & asset management 295,370 295,370 282,934 12,436
Building maintenance 1,956,575 1,956,575 2,000,292 (43,717)
Fleet service 1,351,130 1,351,130 1,212,819 138,311
Interfund charges (3,112,873) (3,112,873) (3,156,639) 43,766
Total Administration 5,077,107 5,077,107 4,703,153 373,954
Total Expenditures 41,456,671 41,488,769 38,754,179 2,734,590
Excess of revenues over expenditures (1,042,074) (1,074,172) 3,039,963 4,114,135
OTHER FINANCING SOURCES (USES)
Transfers in 9,000 9,000 - (9,000)
Transfers out (877,757) (877,757) (869,246) 8,511
Total Other Financing Sources (Uses)(868,757) (868,757) (869,246) (489)
NET CHANGE IN FUND BALANCE (1,910,831) (1,942,929) 2,170,717 4,113,646
FUND BALANCE - BEGINNING 17,066,899 17,066,899 17,066,899 -
FUND BALANCE - ENDING 15,156,068$ 15,123,970$ 19,237,616$ 4,113,646$
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
GENERAL FUND
BUDGET AND ACTUAL
FOR THE YEAR ENDED SEPTEMBER 30, 2023
56
Variance With
Final Budget
Original Final Actual Positive
Budget Budget Amounts (Negative)
REVENUES
Taxes 6,548,000$ 6,548,000$ 6,548,941$ 941$
Investment income 182,000 182,000 1,262,346 1,080,346
Total Revenues 6,730,000 6,730,000 7,811,287 1,081,287
EXPENDITURES
Current:
General government 3,687,439 3,685,798 264,776 3,421,022
Administration 613,521 615,162 593,805 21,357
Total Expenditures 4,300,960 4,300,960 858,581 3,442,379
OTHER FINANCING SOURCES (USES)
Transfers out (5,750,000) (5,750,000) - 5,750,000
Total Other Financing Sources (Uses)(5,750,000) (5,750,000) - 5,750,000
NET CHANGE IN FUND BALANCE (3,320,960) (3,320,960) 6,952,706 10,273,666
FUND BALANCE - BEGINNING 26,043,128 26,043,128 26,043,128 -
FUND BALANCE - ENDING 22,722,168$ 22,722,168$ 32,995,834$ 10,273,666$
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, 2023
57
58
CITY OF SCHERTZ, TEXAS
NOTES TO BUDGETARY SCHEDULES
SEPTEMBER 30, 2023
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, 2023, 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 31,2022 2021 2020
Total pension liability
Service cost 4,576,714$ 4,211,795$ 3,761,994$
Interest on total pension liability 6,323,215 5,766,957 5,326,206
Difference between expected and actual
experience 2,387,281 1,060,260 (154,592)
Change of assumptions - - -
Benefit payments/refunds of contributions (3,075,473) (2,885,733) (2,372,023)
Net Change in Total Pension Liability 10,211,737 8,153,279 6,561,585
Total Pension Liability, Beginning 92,926,641 84,773,362 78,211,777
Total Pension Liability, Ending (a)103,138,378$ 92,926,641$ 84,773,362$
Plan fiduciary net position
Contributions - employer 4,133,310$ 3,831,461$ 3,327,434$
Contributions - employee 1,783,798 1,643,398 1,474,466
Net investment income (5,958,648) 9,113,755 4,760,749
Benefit payments/refunds of contributions (3,075,473) (2,885,733) (2,372,023)
Administrative expenses (51,455) (42,101) (30,767)
Other 61,401 288 (1,200)
Net Change in Fiduciary Position (3,107,067) 11,661,068 7,158,659
Fiduciary Net Position, Beginning 81,459,290 69,798,222 62,639,563
Fiduciary Net Position, Ending (b)78,352,223 81,459,290 69,798,222
Net pension liability = (a)-(b)24,786,155$ 11,467,351$ 14,975,140$
Fiduciary Net Position as a Percentage of
Total Pension Liability 75.97%87.66%82.34%
Covered Payroll 25,497,946$ 23,477,118$ 21,063,794$
Net Pension Liability as a Percentage of
Covered Payroll 97.21%48.84%71.09%
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.
FOR THE YEAR ENDED SEPTEMBER 30, 2023
TEXAS MUNICIPAL RETIREMENT SYSTEM
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
CITY OF SCHERTZ, TEXAS
59
2019 2018 2017 2016 2015 2014
3,421,878$ 3,301,265$ 3,073,538$ 2,855,745$ 2,724,337$ 2,558,743$
4,898,478 4,505,483 4,111,517 3,763,562 3,556,428 3,245,266
(108,478) 34,393 416,585 139,216 120,434 (122,286)
263,015 - - - 59,193 -
(2,244,447) (1,914,159) (1,843,774) (1,581,272) (1,570,211) (1,068,487)
6,230,446 5,926,982 5,757,866 5,177,251 4,890,181 4,613,236
71,981,331 66,054,349 60,296,483 55,119,232 50,229,051 45,615,815
78,211,777$ 71,981,331$ 66,054,349$ 60,296,483$ 55,119,232$ 50,229,051$
3,163,340$ 3,033,936$ 2,793,644$ 2,627,335$ 2,542,565$ 2,403,929$
1,380,585 1,326,518 1,232,232 1,152,864 1,095,260 1,077,097
8,093,416 (1,540,890) 5,999,805 2,602,572 53,742 1,841,586
(2,244,447) (1,914,159) (1,843,774) (1,581,272) (1,570,211) (1,068,487)
(45,681) (29,768) (31,080) (29,385) (32,727) (19,219)
(1,373) (1,554) (1,575) (1,583) (1,616) (1,580)
10,345,840 874,083 8,149,252 4,770,531 2,087,013 4,233,326
52,293,723 51,419,640 43,270,388 38,499,857 36,412,844 32,179,518
62,639,563 52,293,723 51,419,640 43,270,388 38,499,857 36,412,844
15,572,214$ 19,687,608$ 14,634,709$ 17,026,095$ 16,619,375$ 13,816,207$
80.09%72.65%77.84%71.76%69.85%72.49%
19,722,641$ 18,896,766$ 17,603,310$ 16,478,620$ 15,648,114$ 15,389,154$
78.96%104.19%83.14%103.32%106.21%89.78%
60
Fiscal Year Ended September 30,2023 2022 2021
Actuarially determined contribution 4,349,322$ 4,245,872$ 3,700,948$
Contributions in relation to the actuarially
determined contribution 4,349,322 4,245,872 3,700,948
Contribution deficiency (excess)- - -
Covered payroll 26,535,541 26,163,046 22,879,083
Contributions as a percentage of covered payroll 16.39%16.23%16.18%
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 23 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
CITY OF SCHERTZ, TEXAS
NOTES TO SCHEDULE OF CONTRIBUTIONS
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.
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.
FOR THE YEAR ENDED SEPTEMBER 30, 2023
TEXAS MUNICIPAL RETIREMENT SYSTEM
SCHEDULE OF EMPLOYER CONTRIBUTIONS
61
2020 2019 2018 2017 2016 2015
3,235,479$ 3,129,413$ 2,971,592$ 2,756,511$ 2,592,593$ 2,487,856$
3,235,479 3,129,413 2,971,592 2,756,511 2,592,593 2,487,856
- - - - - -
20,401,412 19,520,269 18,605,654 17,347,849 16,175,988 15,486,735
15.86%16.03%15.97%15.89%16.03%16.06%
NOTES TO SCHEDULE OF CONTRIBUTIONS
62
Measurement Date December 31,2022 2021 2020 2019 2018 2017
Total OPEB liability
Service cost 73,900$ 70,429$ 50,554$ 33,528$ 37,794$ 29,926$
Interest on total OPEB liability 21,768 21,248 22,915 26,904 21,182 20,123
Differences in actuarial experience (7,347) (1,360) (4,382) (105,282) 86,276 -
Change of assumptions (462,756) 42,012 158,118 148,494 (54,027) 57,257
Benefit payments (15,290) (11,739) (4,213) (3,945) (3,779) (3,521)
Net change in total OPEB liability (389,725) 120,590 222,992 99,699 87,446 103,785
Total OPEB liability, beginning 1,153,668 1,033,078 810,086 710,387 622,941 519,156
Total OPEB liability, ending (a)763,943$ 1,153,668$ 1,033,078$ 810,086$ 710,387$ 622,941$
Covered-employee payroll 25,497,946$ 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 3.00%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
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.
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.
No assets are accumulated in a trust that meets the criteria in paragraph 4 of
Statement No. 75 to pay related benefits.
CITY OF SCHERTZ, TEXAS
SCHEDULE OF CHANGES IN TMRS OTHER POST-EMPLOYMENT BENEFIT LIABILITY
AND RELATED RATIOS
FOR THE YEAR ENDED SEPTEMBER 30, 2023
NOTES TO SCHEDULE
3.50% to 11.50% including inflation
4.05%
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.
63
Measurement Date December 31,2022 2021 2020 2019 #2018
Total OPEB liability
Service cost 230,479$ 161,830$ 141,084$ 125,648$ 121,821$
Interest on total OPEB liability 48,122 50,064 60,561 78,646 67,947
Difference in actuarial experience (4,764) 134,106 4,341 (343,086) 14,962
Change of assumptions (495,992) (191,684) 161,146 275,398 (81,106)
Benefit payments (64,389) (88,569) (64,499) (59,401) (57,530)
Net change in total OPEB liability (286,544) 65,747 302,633 77,205 66,094
Total OPEB liability, beginning 2,532,303 2,466,556 2,163,923 2,086,718 2,020,624
Total OPEB liability, ending (a)2,245,759$ 2,532,303$ 2,466,556$ 2,163,923$ 2,086,718$
Covered payroll 25,255,936$ 23,290,477$ 20,870,983$ 19,521,924$ 18,974,951$
Total OPEB liability as a percentage of
covered payroll 8.89%10.87%11.82%11.08%11.00%
Valuation Date:December 31, 2021
Methods and Assumptions Used to Determine Contribution Rates:
Actuarial cost method Individual entry-age
Discount rate 4.05% 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 BENEFIT
LIABILITY AND RELATED RATIOS
FOR THE YEAR ENDED SEPTEMBER 30, 2023
The discount rate changed from 1.84%as of December 31, 2021 to
4.05% as of December 31, 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
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 Recovery Program 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.
2023 2022
ASSETS
Cash and cash equivalents 16,338,407$ 12,128,331$
Investments 2,438,934 2,404,552
Receivables (net of allowances)
Taxes 3,352,850 3,174,973
Accounts and other 1,840,329 2,128,452
Due from other funds 644,353 648,630
Inventory 342,248 154,096
Prepaid items - 28,090
Restricted assets:Cash and cash equivalents 598,112 869,564
Total Assets 25,555,233 21,536,688
LIABILITIES
Accounts payable 3,522,925 1,752,626
Accrued salaries and benefits 529,285 431,088
Customer deposits 6,652 105,891
Due to other governments 31,357 83,060
Due to other funds 91,499 16,139
Unearned revenues 52,765 50,078
Total Liabilities 4,234,483 2,438,882
DEFERRED INFLOWS OF RESOURCESUnavailable revenues 2,083,134 2,030,907
Total Deferred Inflows of Resources 2,083,134 2,030,907
FUND BALANCES
Nonspendable for:
Inventory 342,248 154,096
Prepaid items - 28,090
Restricted for:
Police and public safety/municipal court 355,469 302,725
Municipal court 786,902 812,283
PEG capital fees 884,536 967,885
Animal control 44,690 42,825
Scholarships 149,097 134,632
Committed for:
Civic Center/CIED 1,155,078 1,021,594
Assigned for:
Property replacement 954,151 909,889
Subsequent year's budget 2,564,504 446,341 Unassigned 12,000,941 12,246,539
Total Fund Balances 19,237,616 17,066,899
Total Liabilities, Deferred inflows of Resources,
and Fund Balances 25,555,233$ 21,536,688$
CITY OF SCHERTZ, TEXAS
COMPARATIVE BALANCE SHEETS
GENERAL FUND
SEPTEMBER 30, 2023
(WITH COMPARATIVE TOTALS FOR 2022)
65
2023 2022
REVENUESTaxes 33,136,640$ 29,892,435$
Permits and fees 2,077,759 2,204,543
Service fees 2,124,689 2,134,517
Fines and fees 448,805 657,480
Intergovernmental 2,319,760 1,730,576 Investment earnings 1,050,211 90,883
Miscellaneous 636,278 613,268
Total Revenues 41,794,142 37,323,702
EXPENDITURES
Current:
General government 6,943,385 6,051,339
Public safety 19,492,971 18,243,849
Public environment 1,782,809 1,766,558 Parks and recreation 3,134,333 2,567,764
Cultural 1,277,825 1,144,684
Administration 4,538,699 3,991,262
Capital outlay 1,584,157 646,563
Total Expenditures 38,754,179 34,412,019
Excess (Deficiency) of Revenues Over Expenditures 3,039,963 2,911,683
OTHER FINANCING SOURCES (USES)
Transfers in - 37,853
Transfers out (869,246) (2,361,204)
Total Other Financing Sources (Uses)(869,246) (2,323,351)
NET CHANGE IN FUND BALANCE 2,170,717 588,332
FUND BALANCES - BEGINNING 17,066,899 16,478,567
FUND BALANCES - ENDING 19,237,616$ 17,066,899$
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED 2022)
CITY OF SCHERTZ, TEXAS
COMPARATIVE SCHEDULES OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
GENERAL FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2023
66
2023 2022
ASSETS
Cash and cash equivalents 29,560,533$ 22,721,336$
Investments 2,253,041 2,227,105
Receivables, net of allowances:
Taxes 1,183,053 1,101,960
Accounts and other 7,949 7,949
Prepaid items - 990
Total Assets 33,004,576 26,059,340
LIABILITIES
Accounts payable 8,742 16,212
Total Liabilities 8,742 16,212
FUND BALANCES
Restricted for:
Economic development 32,995,834 26,043,128
Total Fund Balances 32,995,834 26,043,128
Total Liabilities and Fund Balances 33,004,576$ 26,059,340$
CITY OF SCHERTZ, TEXAS
COMPARATIVE BALANCE SHEETS
ECONOMIC DEVELOPMENT CORPORATION
SEPTEMBER 30, 2023
(WITH COMPARATIVE TOTALS FOR 2022)
67
2023 2022
REVENUES
Taxes 6,548,941$ 6,025,703$
Investment earnings 1,262,346 201,279
Total Revenues 7,811,287 6,226,982
EXPENDITURES
Current:
General government 264,776 218,302
Administration 593,805 531,783
Total Expenditures 858,581 750,085
Excess (Deficiency) of Revenues Over (Under) Expenditures 6,952,706 5,476,897
OTHER FINANCING SOURCES (USES)
Transfers out - (1,240,000)
Total Other Financing Sources (Uses)- (1,240,000)
NET CHANGE IN FUND BALANCE 6,952,706 4,236,897
FUND BALANCES - BEGINNING 26,043,128 21,806,231
FUND BALANCES - ENDING 32,995,834$ 26,043,128$
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED 2022)
CITY OF SCHERTZ, TEXAS
COMPARATIVE SCHEDULES OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
ECONOMIC DEVELOPMENT CORPORATION
FOR THE YEAR ENDED SEPTEMBER 30, 2023
68
2023 2022
ASSETS
Cash and cash equivalents 1,159,250$ 1,864,408$
Receivables, net of allowances:
Taxes 164,420 172,341
Total Assets 1,323,670 2,036,749
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues 209,812 172,340
Total Deferred Inflows of Resources 209,812 172,340
FUND BALANCES
Restricted for:
Debt service 1,113,858 1,864,409
Total Fund Balances 1,113,858 1,864,409
Total Deferred Inflows of Resources and Fund
Balances 1,323,670$ 2,036,749$
CITY OF SCHERTZ, TEXAS
COMPARATIVE BALANCE SHEETS
DEBT SERVICE FUND
SEPTEMBER 30, 2023
(WITH COMPARATIVE TOTALS FOR 2022)
69
Variance With
2023 Final Budget 2022
Original Final Actual Positive Actual
Budget Budget Amounts (Negative)Amounts
REVENUES
Property taxes 7,696,355$ 7,696,355$ 7,710,299$ 13,944$ 7,182,900$
Investment income 75,750 75,750 105,398 29,648 143,428
Miscellaneous 100,000 100,000 181,935 81,935 75,000
Total Revenue 7,872,105 7,872,105 7,997,632 125,527 7,401,328
EXPENDITURES
Debt service:
Principal 6,888,900 6,888,900 5,850,000 1,038,900 4,805,000
Interest and fiscal charges 1,713,348 1,713,348 2,893,986 (1,180,638) 1,779,157
Bond issue costs 84,000 84,000 4,200 79,800 90,626
Total Expenditures 8,686,248 8,686,248 8,748,186 (61,938) 6,674,783
Excess (Deficiency) of Revenues over Expenditures (814,143) (814,143) (750,554) 187,465 726,545
OTHER FINANCING SOURCES (USES)
Issuance of refunding debt - - - - 4,070,000
Premium on issuance of debt - - - - 421,632
Payment to refunding escrow agent - - - - (4,443,881)
Transfers in - - 3 3 2,737
Total Other Financing Sources (Uses)- - 3 3 50,488
NET CHANGE IN FUND BALANCE (814,143) (814,143) (750,551) 63,592 777,033
FUND BALANCE - BEGINNING 1,864,409 1,864,409 1,864,409 - 1,087,376
FUND BALANCE - ENDING 1,050,266$ 1,050,266$ 1,113,858$ 63,592$ 1,864,409$
(WITH COMPARATIVE ACTUAL TOTALS FOR 2022)
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, 2023
70
2023 2022
ASSETS
Cash and cash equivalents 23,012,099$ 42,594,424$
Total Assets 23,012,099 42,594,424
LIABILITIES
Accounts payable 253,110 906,624
Retainage payable 5,807 281,284
Total Liabilities 258,917 1,187,908
FUND BALANCES
Restricted for:
Capital improvement 19,318,324 35,863,370
Committed for:
Capital projects 3,434,858 5,543,146
Total Fund Balances 22,753,182 41,406,516
Total Liabilities and Fund Balance 23,012,099$ 42,594,424$
CITY OF SCHERTZ, TEXAS
COMPARATIVE BALANCE SHEETS
CAPITAL PROJECTS FUND
SEPTEMBER 30, 2023
(WITH COMPARATIVE TOTALS FOR 2022)
71
2023 2022
REVENUES
Intergovernmental 201,621$ -$
Investment earnings 1,601,296 196,624
Miscellaneous - 450,000
Total Revenues 1,802,917 646,624
EXPENDITURES
Capital outlay 21,307,128 9,544,074
Debt service:
Bond issue costs - 468,285
Total Expenditures 21,307,128 10,012,359
Excess (Deficiency) of Revenues Over Expenditures (19,504,211) (9,365,735)
OTHER FINANCING SOURCES (USES)
Issuance of debt - 31,540,000
Premium on issuance of debt - 2,778,912
Transfers in 850,880 3,285,112
Transfers out (3) (2,737)
Total Other Financing Sources (Uses)850,877 37,601,287
NET CHANGE IN FUND BALANCE (18,653,334) 28,235,552
FUND BALANCES - BEGINNING 41,406,516 13,170,964
FUND BALANCES - ENDING 22,753,182$ 41,406,516$
(WITH COMPARTIVE TOTALS FOR THE YEAR ENDED 2022)
CITY OF SCHERTZ, TEXAS
COMPARATIVE SCHEDULES OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
CAPITAL PROJECTS FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2023
72
Hotel
Occupancy Park Tree Treasury
Fund Fund Mitigation Forfeitures
ASSETS
Cash and cash equivalents 2,542,360$ 89,126$ 748,523$ 5,404$
Accounts receivable, net of allowance 75,247 - - -
Total Assets 2,617,607 89,126 748,523 5,404
LIABILITIES
Accounts payable 1,193 2,116 49,830 -
Due to other funds - - - -
Total Liabilities 1,193 2,116 49,830 -
FUND BALANCES
Restricted for:
Tourism development 2,616,414 - - -
Parks and tree mitigation - 87,010 698,693 -
Police forfeiture - - - 5,404
Roadways - - - -
Historical Committee and library - - - -
Unassigned - - - -
Total Fund Balances 2,616,414 87,010 698,693 5,404
Total Liabilities and Fund Balances 2,617,607$ 89,126$ 748,523$ 5,404$
Special Revenue Funds
CITY OF SCHERTZ, TEXAS
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2023
73
Capital
Projects Fund
Library Historical Capital Total Nonmajor
Justice State Grant Advisory Committee Recovery Governmental
Forfeitures Forfeitures Fund Board Fund Roadways Funds
239,435$ 74,320$ -$ 76,365$ 29,340$ 3,011,662$ 6,816,535$
- - - - 93 - 75,340
239,435 74,320 - 76,365 29,433 3,011,662 6,891,875
- - 621 130 - - 53,890
- - 644,353 - - - 644,353
- - 644,974 130 - - 698,243
- - - - - - 2,616,414
- - - - - - 785,703
239,435 74,320 - - - - 319,159
- - - - - 3,011,662 3,011,662
- - - 76,235 29,433 - 105,668
- - (644,974) - - - (644,974)
239,435 74,320 (644,974) 76,235 29,433 3,011,662 6,193,632
239,435$ 74,320$ -$ 76,365$ 29,433$ 3,011,662$ 6,891,875$
Special Revenue Funds
74
Hotel
Occupancy Park Tree Treasury
Fund Fund Mitigation Forfeiture
REVENUES
Occupancy tax 1,059,808$ -$ -$ -$
Permits and fees - 203,500 48,065 -
Service fees - - - -
Fines and fees - - - -
Intergovernmental - - - -
Investment earnings 92,825 9,057 35,600 -
Miscellaneous - - - -
Total Revenues 1,152,633 212,557 83,665 -
EXPENDITURES
Current:
General government 107,656 - - -
Public safety - - - -
Parks and recreation - - 93,032 -
Cultural - - - -
Administration 69,915 - - -
Capital outlay 5,266 387,068 - -
Total Expenditures 182,837 387,068 93,032 -
Excess (Deficiency) of Revenue
Over Expenditures 969,796 (174,511) (9,367) -
OTHER FINANCING SOURCES (USES)
Transfer in - - - -
Total Other Financing Sources (Uses)- - - -
NET CHANGE IN FUND BALANCES 969,796 (174,511) (9,367) -
FUND BALANCES - BEGINNING 1,646,618 261,521 708,060 5,404
FUND BALANCES - ENDING 2,616,414$ 87,010$ 698,693$ 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, 2023
75
Capital
Projects Fund
Library Historical Capital Total Nonmajor
Justice State Grant Advisory Committee Recovery Governmental
Forfeitures Forfeitures Fund Board Fund Roadways Funds
-$ -$ -$ -$ -$ -$ 1,059,808$
- - - - - - 251,565
- - - 20,318 199 661,078 681,595
141,539 69,541 - - - - 211,080
- - 35,671 - - - 35,671
8,305 - - 3,463 - 133,917 283,167
- - - 8 2,244 - 2,252
149,844 69,541 35,671 23,789 2,443 794,995 2,525,138
- - - - 9,159 - 116,815
44,982 - 41,811 - - - 86,793
- - - - - - 93,032
- - - 17,123 - - 17,123
- - - - - - 69,915
- - - - - 342,687 735,021
44,982 - 41,811 17,123 9,159 342,687 1,118,699
104,862 69,541 (6,140) 6,666 (6,716) 452,308 1,406,439
- - 9,796 - 9,161 - 18,957
- - 9,796 - 9,161 - 18,957
104,862 69,541 3,656 6,666 2,445 452,308 1,425,396
134,573 4,779 (648,630) 69,569 26,988 2,559,354 4,768,236
239,435$ 74,320$ (644,974)$ 76,235$ 29,433$ 3,011,662$ 6,193,632$
Special Revenue Funds
76
Variance With
2023 Final Budget 2022
Original Final Actual Positive Actual
Budget Budget Amounts (Negative)Amounts
REVENUES
Occupancy tax 640,000$ 640,000$ 1,059,808$ 419,808$ 804,132$
Investment earnings 8,500 8,500 92,825 84,325 14,583
Total Revenues 648,500 648,500 1,152,633 504,133 818,715
EXPENDITURES
Current:
General government 197,700 197,700 107,656 90,044 242,875
Administration 69,915 69,915 69,915 - 74,443
Capital outlay 5,300 5,300 5,266 34 1,156,495
Total Expenditures 272,915 272,915 182,837 90,078 1,473,813
NET CHANGE IN FUND BALANCE 375,585 375,585 969,796 594,211 (655,098)
FUND BALANCE - BEGINNING 1,646,618 1,646,618 1,646,618 - 2,301,716
FUND BALANCE - ENDING 2,022,203$ 2,022,203$ 2,616,414$ 594,211$ 1,646,618$
(WITH COMPARATIVE ACTUAL TOTALS FOR 2022)
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, 2023
77
Variance With
2023 Final Budget 2022
Original Final Actual Positive Actual
Budget Budget Amounts (Negative)Amounts
REVENUES
Licenses and permits 318,000$ 318,000$ 203,500$ (114,500)$ -$
Investment earnings 1,025 1,025 9,057 8,032 2,194
Total Revenues 319,025 319,025 212,557 (106,468) 2,194
EXPENDITURES
Current:
Parks and recreation 25,000 25,000 - 25,000 10,040
Capital outlay 362,068 362,068 387,068 (25,000) 17,650
Total Expenditures 387,068 387,068 387,068 - 27,690
NET CHANGE IN FUND BALANCE (68,043) (68,043) (174,511) (106,468) (25,496)
FUND BALANCE - BEGINNING 261,521 261,521 261,521 - 287,017
FUND BALANCE - ENDING 193,478$ 193,478$ 87,010$ (106,468)$ 261,521$
(WITH COMPARATIVE ACTUAL TOTALS FOR 2022)
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
PARK FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2023
78
Variance With
2023 Final Budget 2022
Original Final Actual Positive Actual
Budget Budget Amounts (Negative)Amounts
REVENUES
Licenses and permits 70,000$ 70,000$ 48,065$ (21,935)$ 136,950$
Investment earnings 1,400 1,400 35,600 34,200 5,324
Total Revenues 71,400 71,400 83,665 12,265 142,274
EXPENDITURES
Current:
Parks and recreation 70,000 70,000 93,032 (23,032) 82,110
Total Expenditures 70,000 70,000 93,032 (23,032) 82,110
NET CHANGE IN FUND BALANCE 1,400 1,400 (9,367) (10,767) 60,164
FUND BALANCE - BEGINNING 708,060 708,060 708,060 - 647,896
FUND BALANCE - ENDING 709,460$ 709,460$ 698,693$ (10,767)$ 708,060$
(WITH COMPARATIVE ACTUAL TOTALS FOR 2022)
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, 2023
79
2023 2022
REVENUES
Fines 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 5,404 32,560
FUND BALANCE - ENDING 5,404$ 5,404$
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES
TREASURY FORFEITURES FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2023
(WITH COMPARATIVE TOTALS FOR 2022)
AND CHANGES IN FUND BALANCE
80
2023 2022
REVENUES
Fines and fees 141,539$ 46,238$
Investment earnings 8,305 784
Total Revenues 149,844 47,022
EXPENDITURES
Current:
Public safety 44,982 -
Capital outlay - 9,273
Total Expenditures 44,982 9,273
NET CHANGE IN FUND BALANCE 104,862 37,749
FUND BALANCE - BEGINNING 134,573 96,824
FUND BALANCE - ENDING 239,435$ 134,573$
(WITH COMPARATIVE TOTALS FOR 2022)
FOR THE YEAR ENDED SEPTEMBER 30, 2023
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES
JUSTICE FORFEITURES FUND
AND CHANGES IN FUND BALANCE
81
2023 2022
REVENUES
Fines and fees 69,541$ -$
Total Revenues 69,541 -
EXPENDITURES
Current:
Public safety - -
Total Expenditures - -
NET CHANGE IN FUND BALANCE 69,541 -
FUND BALANCE - BEGINNING 4,779 4,779
FUND BALANCE - ENDING 74,320$ 4,779$
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES
STATE FORFEITURES FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2023
(WITH COMPARATIVE TOTALS FOR 2022)
AND CHANGES IN FUND BALANCE
82
Variance With
2023 Final Budget 2022
Original Final Actual Positive Actual
Budget Budget Amounts (Negative)Amounts
REVENUES
Service fees 17,000$ 17,000$ 20,318$ 3,318$ 18,292$
Investment earnings 35 35 3,463 3,428 546
Miscellaneous - - 8 8 507
Total Revenues 17,035 17,035 23,789 6,754 19,345
EXPENDITURES
Current:
Cultural 22,200 22,200 17,123 5,077 14,340
Total Expenditures 22,200 22,200 17,123 5,077 14,340
NET CHANGE IN FUND BALANCE (5,165) (5,165) 6,666 11,831 5,005
FUND BALANCE - BEGINNING 69,569 69,569 69,569 - 64,564
FUND BALANCE - ENDING 64,404$ 64,404$ 76,235$ 11,831$ 69,569$
(WITH COMPARATIVE ACTUAL TOTALS FOR 2022)
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, 2023
83
Variance With
2023 Final Budget 2022
Original Final Actual Positive Actual
Budget Budget Amounts (Negative)Amounts
REVENUES
Sale of merchandise 1,000$ 1,000$ 199$ (801)$ 1,943$
Miscellaneous - - 2,244 2,244 -
Total Revenues 1,000 1,000 2,443 1,443 1,943
EXPENDITURES
Current:
General government 11,750 11,750 9,159 2,591 3,116
Total Expenditures 11,750 11,750 9,159 2,591 3,116
Excess of Revenues Over Expenditures (10,750) (10,750) (6,716) 4,034 (1,173)
OTHER FINANCING SOURCES (USES)
Transfers in 10,750 10,750 9,161 (1,589) 13,863
Total Other Financing Sources (Uses)10,750 10,750 9,161 (1,589) 13,863
NET CHANGE IN FUND BALANCE - - 2,445 2,445 12,690
FUND BALANCE - BEGINNING 26,988 26,988 26,988 - 14,298
FUND BALANCE - ENDING 26,988$ 26,988$ 29,433$ 2,445$ 26,988$
(WITH COMPARATIVE ACTUAL TOTALS FOR 2022)
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, 2023
84
2023 2022
REVENUES
Service fees 661,078$ 798,955$
Investment earnings 133,917 19,878
Total Revenues 794,995 818,833
EXPENDITURES
Capital outlay 342,687 60,519
Total Expenditures 342,687 60,519
NET CHANGE IN FUND BALANCE 452,308 758,314
FUND BALANCE - BEGINNING 2,559,354 1,801,040
FUND BALANCE - ENDING 3,011,662$ 2,559,354$
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES
CAPITAL RECOVERY ROADWAYS
FOR THE YEAR ENDED SEPTEMBER 30, 2023
(WITH COMPARATIVE TOTALS FOR 2022)
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
2014 2015 2016 2017
Governmental activities
Net investment in capital assets 62,792,671$ 68,125,738$ 74,237,004$ 84,537,238$
Restricted 10,401,728 13,343,280 17,095,325 20,437,116
Unrestricted 8,613,239 1,640,519 2,231,341 1,673,567
Total Governmental Activities Net
Position 81,807,638$ 83,109,537$ 93,563,670$ 106,647,921$
Business-type activities
Net investment in capital assets 53,674,437$ 59,625,205$ 64,210,231$ 70,361,035$
Restricted - - - 10,565,463
Unrestricted 16,450,988 14,243,922 15,737,470 20,781,291
Total Business-Type Activities Net
Position 70,125,425$ 73,869,127$ 79,947,701$ 101,707,789$
Primary government
Net investment in capital assets 116,467,108$ 127,750,943$ 138,447,235$ 154,898,273$
Restricted 10,401,728 13,343,280 17,095,325 20,437,116
Unrestricted 25,064,227 15,884,441 17,968,811 22,454,858
Total Primary Government Net
Position 151,933,063$ 156,978,664$ 173,511,371$ 197,790,247$
Fiscal Year
CITY OF SCHERTZ, TEXAS
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS(ACCRUAL BASIS OF ACCOUNTING)
(UNAUDITED)
86
TABLE 1
2018 2019 2020 2021 2022 2023
89,266,885$ 89,869,766$ 88,959,102$ 98,444,714$ 109,746,340$ 136,442,093$
23,391,047 28,088,355 28,664,438 28,342,438 32,745,688 40,311,118
2,351,236 2,920,717 4,157,801 10,744,127 11,055,015 7,768,985
115,009,168$ 120,878,838$ 121,781,341$ 137,531,279$ 153,547,043$ 184,522,196$
64,871,629$ 68,271,075$ 75,969,319$ 83,941,882$ 94,997,863$ 114,831,425$
12,626,526 13,232,638 15,071,599 5,408,320 5,408,320 6,640,756
20,870,671 33,254,008 30,570,717 39,406,798 42,791,680 39,140,966
98,368,826$ 114,757,721$ 121,611,635$ 128,757,000$ 143,197,863$ 160,613,147$
154,138,514$ 158,140,841$ 164,928,421$ 182,386,596$ 204,744,203$ 251,273,518$
23,391,047 41,320,993 43,736,037 33,750,758 38,154,008 46,951,874
35,848,433 36,174,725 34,728,518 50,150,925 53,846,695 46,909,951
213,377,994$ 235,636,559$ 243,392,976$ 266,288,279$ 296,744,906$ 345,135,343$
Fiscal Year
87
2014 2015 2016 2017
Expenses
Governmental activities:
General government 6,958,530$ 6,443,227$ 6,557,778$ 6,253,926$
Public safety 10,025,703 10,836,712 12,141,968 13,061,120
Public environment 3,740,538 3,876,644 4,147,653 4,460,540
Parks and recreation 1,807,136 2,164,604 2,034,964 2,859,974
Cultural 870,159 892,194 954,871 1,004,747
Health 407,114 470,468 570,204 776,494
Administration 1,942,312 1,845,877 1,954,276 3,052,102
Interest and other fees 2,352,856 2,226,635 2,240,783 2,355,714
Total Governmental Activities Expenses 28,104,348 28,756,361 30,602,497 33,824,617
Business-type activities:
Water and sewer 17,762,116 18,440,959 20,269,111 21,346,078
EMS 4,268,125 4,719,526 5,004,110 6,006,178
Total Business-Type Activities Expenses 22,030,241 23,160,485 25,273,221 27,352,256
Total Primary Government Expenses 50,134,589 51,916,846 55,875,718 61,176,873
Program Revenues
Governmental activities:Charges for services:
General government 1,974,637 1,840,547 1,507,252 874,737
Public safety 2,536,476 2,603,476 2,415,537 4,131,548 Public environment - - - -
Parks and recreation 917,639 794,003 788,727 544,460
Cultural 309,897 325,178 326,079 330,412 Health 32,429 26,744 30,308 29,742
Operating grants and contributions 220,264 336,252 342,485 552,878
Capital grants and contributions 5,756,456 5,509,530 6,227,664 10,043,483
Total Governmental
Activities Program Revenues 11,747,798 11,435,730 11,638,052 16,507,260
Business-type activities:
Charges for services:Water and sewer 19,147,872 20,700,369 22,003,794 25,390,713
EMS 4,533,753 4,415,126 5,921,223 6,366,894
Capital grants and contributions 2,809,110 4,158,552 2,831,126 6,111,474
Total Business-Type Activities
Program Revenues 26,490,735 29,274,047 30,756,143 37,869,081
Total Primary Government Program Revenues 38,238,533 40,709,777 42,394,195 54,376,341
Net (expense) revenue:Governmental activities (16,356,550) (17,320,631) (18,964,445) (17,317,357)
Business-type activities 4,460,494 6,113,562 5,482,922 10,516,825
Total Primary Government Net Expense (11,896,056) (11,207,069) (13,481,523) (6,800,532)
Fiscal Year
CITY OF SCHERTZ, TEXAS
CHANGE IN NET POSITION LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(UNAUDITED)
88
TABLE 2
2018 2019 2020 2021 2022 2023
7,421,918$ 6,534,013$ 10,310,363$ 7,298,193$ 7,093,652$ 8,244,956$
13,899,278 15,448,886 16,575,191 19,008,871 19,580,703 22,195,399
4,930,723 5,495,192 8,825,099 5,364,408 8,545,834 6,188,351
2,707,292 3,022,278 3,012,134 3,395,458 3,543,978 4,253,278
1,042,085 1,119,650 1,089,564 1,087,975 1,168,815 1,380,793
724,780 516,890 596,288 - - -
3,067,983 3,853,255 3,419,407 4,360,229 4,455,947 5,363,700
2,125,687 2,196,180 2,028,065 1,797,520 2,490,474 2,555,917
35,919,746 38,186,344 45,856,111 42,312,654 46,879,403 50,182,394
23,579,854 25,608,390 24,349,219 25,280,964 27,833,986 30,088,159
6,110,407 6,529,631 6,051,296 7,784,670 8,234,500 10,176,945
29,690,261 32,138,021 30,400,515 33,065,634 36,068,486 40,265,104
65,610,007 70,324,365 76,256,626 75,378,288 82,947,889 90,447,498
1,013,698 947,538 836,246 651,211 686,470 470,879
4,104,911 3,177,329 3,276,129 3,079,945 3,922,957 4,067,387 - 138,920 850,201 902,712 798,955 661,078
640,231 484,495 331,174 528,886 652,727 753,302
313,668 311,575 299,944 285,792 310,859 315,222 27,930 21,101 26,304 - - -
776,942 692,042 2,113,673 1,925,939 3,970,029 2,425,937
4,744,489 1,319,793 531,096 7,959,576 6,987,788 18,456,911
11,621,869 7,092,793 8,264,767 15,334,061 17,329,785 27,150,716
27,099,237 27,333,475 29,709,279 27,724,929 30,677,566 31,589,783
6,092,559 6,596,618 6,114,891 7,709,027 9,420,909 9,503,821
3,132,348 1,975,524 292,408 6,935,191 6,143,957 14,180,619
36,324,144 35,905,617 36,116,578 42,369,147 46,242,432 55,274,223
47,946,013 42,998,410 44,381,345 57,703,208 63,572,217 82,424,939
(24,297,877) (31,093,551) (37,591,344) (26,978,593) (29,549,618) (23,031,678)
6,633,883 3,767,596 5,716,063 9,303,513 10,173,946 15,009,119
(17,663,994) (27,325,955) (31,875,281) (17,675,080) (19,375,672) (8,022,559)
Fiscal Year
CHANGE IN NET POSITION
89
2014 2015 2016 2017
General Revenues and
Other Changes in Net PositionGovernmental activities:
Taxes
Ad valorem 12,794,172$ 14,139,037$ 15,131,997$ 16,166,006$ Sales 10,553,382 10,315,125 10,921,489 10,844,503
Franchise fees 2,073,162 2,263,783 2,250,815 2,208,373
Hotel/motel 552,570 563,734 544,871 499,466 Mixed drink 39,917 43,656 43,073 42,699
Investment income 43,279 56,820 187,847 448,408
Miscellaneous 180,316 197,881 309,275 182,754
Transfers (50,000) (42,235) 29,211 9,399
Total Governmental Activities 26,186,798 27,537,801 29,418,578 30,401,608
Business-type activities:
Interest and investment earnings 31,810 47,728 102,642 211,466
Miscellaneous 609,003 344,731 522,221 475,733
Transfers 50,000 42,235 (29,211) (9,399)
Total Business-Type Activities 690,813 434,694 595,652 677,800
Total Primary Government 26,877,611 27,972,495 30,014,230 31,079,408
Change in Net Position
Governmental activities 9,830,248 10,217,170 10,454,133 13,084,251
Business-type activities 5,151,307 6,548,256 6,078,574 11,194,625
Total Primary Government 14,981,555$ 16,765,426$ 16,532,707$ 24,278,876$
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
2018 2019 2020 2021 2022 2023
17,018,950$ 19,151,005$ 19,844,912$ 21,463,804$ 22,495,628$ 25,118,429$ 12,668,555 12,506,879 14,432,152 16,838,731 18,075,733 19,646,841
2,393,182 2,357,150 2,305,225 2,305,108 2,574,041 2,593,660
520,424 514,679 268,946 518,921 804,132 1,059,808 43,395 60,518 70,139 68,730 83,391 88,347
909,985 1,470,258 804,674 104,613 709,898 4,678,690
283,496 984,257 767,779 1,408,270 1,138,775 820,465
19,186 (81,525) - - (316,216) -
33,857,173 36,963,221 38,493,827 42,708,177 45,565,382 54,006,240
532,367 855,216 431,555 68,354 314,546 1,927,277
453,374 267,788 706,296 754,268 675,739 479,479
(19,186) 81,525 - - 316,216 -
966,555 1,204,529 1,137,851 822,622 1,306,501 2,406,756
34,823,728 38,167,750 39,631,678 43,530,799 46,871,883 56,412,996
9,559,296 5,869,670 902,503 15,729,584 16,015,764 30,975,153
7,600,438 4,972,125 6,853,914 10,126,135 11,480,447 17,415,284
17,159,734$ 10,841,795$ 7,756,417$ 25,855,719$ 27,496,211$ 48,390,437$
Fiscal Year
CHANGE IN NET POSITION
91
2014 2015 2016 2017
General fund
Non-spendable 110,253$ 117,084$ 220,503$ 98,263$
Restricted 1,701,408 1,748,374 1,929,636 1,994,905
Committed - - - -
Assigned 694,916 785,005 752,503 854,198
Unassigned 5,587,262 7,280,240 8,509,467 9,976,169
Total general fund 8,093,839$ 9,930,703$ 11,412,109$ 12,923,535$
All other governmental funds
Restricted 19,261,995$ 21,191,968$ 27,252,908$ 35,721,031$
Committed 31,718 - 342,519 454,376
Assigned 31,177 6,657 6,743 -
Unassigned - - - -
Total all other governmental funds 19,324,890$ 21,198,625$ 27,602,170$ 36,175,407$
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
2018 2019 2020 2021 2022 2023
94,876$ 131,925$ 114,787$ 162,463$ 182,186$ 342,248$
2,027,125 2,196,037 1,996,357 2,151,411 2,260,350 2,220,694
- - 687,780 907,676 1,021,594 1,155,078
3,080,557 5,580,626 1,972,479 1,501,398 1,356,230 3,518,655
12,548,013 9,228,612 12,197,575 11,755,619 12,246,539 12,000,941
17,750,571$ 17,137,200$ 16,968,978$ 16,478,567$ 17,066,899$ 19,237,616$
37,772,240$ 39,009,399$ 32,024,252$ 33,329,710$ 69,222,391$ 60,666,303$
454,376 687,779 4,071,942 7,985,798 5,543,146 3,434,858
- - - - - -
- - (2,071,518) (675,043) (648,630) (644,974)
38,226,616$ 39,697,178$ 34,024,676$ 40,640,465$ 74,116,907$ 63,456,187$
Fiscal Year
93
2014 2015 2016 2017
Revenues
Taxes 26,021,730$ 27,348,297$ 28,865,727$ 29,720,578$
Permits and fees 1,805,047 1,731,302 1,493,336 2,540,045
Service fees 1,763,964 1,797,151 1,789,321 2,132,299
Fines and fees 1,750,311 1,534,588 1,441,474 1,217,621
Intergovernmental 221,769 393,607 401,494 397,073
Other revenue 671,731 689,805 1,741,436 1,897,153
Total Revenues 32,234,552 33,494,750 35,732,788 37,904,769
Expenditures
Current:
General government 5,981,439 5,582,441 5,657,998 5,394,918
Public safety 9,409,894 10,158,401 11,048,767 11,870,636
Public environment 1,012,607 952,663 1,007,326 1,128,979
Parks and recreation 1,338,232 1,658,197 1,528,356 1,885,915
Cultural 815,691 821,146 869,162 921,870
Health 394,918 404,008 480,175 672,934
Administration 2,270,041 2,056,646 2,015,573 2,912,855
Capital outlay 8,000,467 2,314,668 10,192,398 5,492,196
Debt service:
Principal 3,695,597 3,918,008 4,040,975 4,473,174
Interest and fiscal charges 2,108,610 2,112,746 1,896,911 2,113,679
Bond issue costs 165,650 7,992 449,358 214,280
Payment to refund agent - - - -
Total Expenditures 35,193,146 29,986,916 39,186,999 37,081,436
Excess of Revenues Over (Under)
Expenditures (2,958,594) 3,507,834 (3,454,211) 823,333
Other Financing Sources (Uses)
Bond & debt issuances 8,583,715 245,000 10,750,000 8,870,000
Refunding bond issuance - - 4,185,000 -
Premium (discount) on bond issue 686,137 - 590,432 381,931
Payment to refund agent (9,182,250) - (4,215,482) -
Transfer in 1,243,833 989,120 863,583 438,803
Transfer out (1,293,832) (1,031,355) (834,371) (429,404)
Net Other Financing Sources (Uses)37,603 202,765 11,339,162 9,261,330
Net Change in Fund Balances (2,920,991)$ 3,710,599$ 7,884,951$ 10,084,663$
Debt Service as a Percentage of
Noncapital Expenditures 21.3% 21.3% 20.5% 20.4%
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
2018 2019 2020 2021 2022 2023
32,632,702$ 34,590,008$ 36,802,913$ 41,150,087$ 43,905,170$ 48,455,688$
2,557,056 1,635,461 1,807,264 1,812,895 2,341,493 2,329,324
2,159,193 2,070,293 2,583,598 2,540,995 2,953,707 2,806,284
1,049,989 953,614 880,657 643,482 754,558 659,885
609,131 1,057,681 951,604 4,582,874 4,247,523 3,061,631
1,761,285 2,454,515 1,572,473 1,512,883 1,848,673 5,499,155
40,769,356 42,761,572 44,598,509 52,243,216 56,051,124 62,811,967
6,327,133 5,881,647 10,364,369 6,580,915 6,515,632 7,324,976
12,728,222 13,985,443 15,366,593 18,107,418 19,098,373 19,579,764
1,136,052 1,112,041 1,270,894 1,382,185 1,766,558 1,782,809
1,697,872 2,393,487 2,102,083 2,534,679 2,659,914 3,227,365
955,153 1,018,109 1,044,891 1,059,984 1,159,024 1,294,948
628,054 498,871 589,616 - - -
3,015,239 3,795,233 3,353,634 4,459,223 4,597,488 5,202,419
7,708,625 9,083,572 9,276,886 5,215,256 13,096,740 24,142,094
4,744,116 4,565,000 4,929,544 4,955,000 4,805,000 5,850,000
2,099,190 2,069,215 2,136,523 1,801,467 1,779,157 2,893,986
129,417 189,082 4,200 140,140 558,911 4,200
- 5,489,912 - - - -
41,169,073 50,081,612 50,439,233 46,236,267 56,036,797 71,302,561
(399,717) (7,320,040) (5,840,724) 6,006,949 14,327 (8,490,594)
4,887,829 4,620,000 - 136,535 31,540,000 -
6,035,000 5,225,000 - 7,555,000 4,070,000 -
269,212 640,115 - 629,992 3,200,544 -
(6,159,623) - - (8,223,452) (4,443,881) -
777,487 120,503 4,500,169 6,395,386 3,339,565 869,840
(758,302) (202,028) (4,500,169) (6,375,032) (3,655,781) (869,249)
5,051,603 10,403,590 - 118,429 34,050,447 591
4,651,886$ 3,083,550$ (5,840,724)$ 6,125,378$ 34,064,774$ (8,490,003)$
22.2% 17.3% 16.2% 19.9% 17.1% 30.3%
Fiscal Year
95
Fiscal Property Sales & Use Franchise Mixed
Year Tax Tax Tax Beverage
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
2023 25,067,032 19,646,841 2,593,660 88,347
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
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
- 1,059,808 48,455,688
97
TABLE 6
FiscalYear Total Water &Water & Water & Sewer
Ended Sewer Consumption Sewer Initial Rate PerSeptember 30, (In Gallons)Base Rate 1,000 Gallons
2023 2,363,742,000 40.85 8.13 2022 1,700,418,300 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
Source: Schertz Utility System
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 312,077,500 1 13.20%
Scenic Hills Lawn Care 15,758,800 2 0.67%
WHC Schertz Apts, LLC 14,287,200 3 0.60%
City of Cibolo 12,822,500 4 0.54%
Crossvine Master Community 12,051,600 5 0.51%
Pecan Grove 9,768,200 6 0.41% 7,725,100 8 0.50%
Sycamore Creek Apartments 8,581,900 7 0.36% 10,869,700 3 0.70%
Comal ISD 7,150,300 8 0.30%
APG Texas 1LP 6,158,400 9 0.26%
City of Schertz (Soccor Field)6,095,200 10 0.26%
SYSCO 23,384,500 1 1.52%
Caterpillar 20,741,100 2 1.34%
Waterford Ridge Apartments 9,537,700 4 0.62%
Beck Readymix 9,366,900 5 0.61%
Ray D. Corbett Jr High School 8,695,600 6 0.56%
Big Time Management 8,200,700 7 0.53%
Val Verde 6,301,600 9 0.41%
YMCA/Splash Pad 5,281,200 10 0.34%
TOTAL 404,751,600 17.12% 110,104,100 7.13%
Total City Water Consumption 2,363,742,000 1,543,351,600
Source: Schertz Utility System
2023 2014
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 ISD
2023 0.3470 0.1480 0.4950 1.3246 1.2746
2022 0.3517 0.1604 0.5121 1.3950 1.2920
2021 0.3470 0.1651 0.5121 1.4106 1.2757
2020 0.3496 0.1650 0.5146 1.4200 1.3200
2019 0.3497 0.1649 0.5146 1.4900 1.3200
2018 0.3248 0.1662 0.4910 1.4900 1.3900
2017 0.3168 0.1743 0.4911 1.4700 1.3900
2016 0.3159 0.1752 0.4911 1.4900 1.3900
2015 0.3164 0.1810 0.4974 1.4900 1.3900
2014 0.3010 0.1964 0.4974 1.4900 1.4300
2013 0.2993 0.2006 0.4999 1.4600 1.4300
CommunityFiscalBexarHospitalRiverCollege Comal GuadalupeYearCountyDistrictAuthorityDistrictCountyCounty
2023 0.2624 0.2762 0.0184 0.1492 0.2847 0.3439
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
Source: Guadalupe, Bexar, and Comal Appraisal Districts
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 140,910,461$ 1 2.09%95,931,063$ 2 3.49%
Sun Life Assurance Company of Canada 103,976,267 2 1.54%
Caterpillar Inc.100,507,470 3 1.49%105,162,397 1 3.82%
Rebublic Beverage Company 68,123,480 4 1.01%46,370,700 3 1.68%
Amazon Com Services Inc 62,136,947 5 0.92%
HGIT Schertz Parkway LP 59,349,999 6 0.88%
Eastgroup Properties LP 48,116,511 7 0.71%
DG Industrial Portfolio II Property Owner LP 29,719,290 8 0.44%
WHC Schertz Apts LLC 28,500,000 9 0.42%
QR AMZ 1150 Schwab RD LLC 22,222,590 10 0.33%
Capital Group Companies Inc.37,581,105 4 1.37%
San Antonio MTA LP 22,907,035 5 0.83%
SC Schertz LLC 16,240,300 6 0.59%
GE Oil & Gas Inc.16,011,420 7 0.58%
Wal-Mart Real Estate Business Trust 13,239,871 8 0.48%
H.E.Butt Grocery Co.11,650,124 9 0.42%
EM Limited Partnership 9,922,009 10 0.36%
Totals 663,563,015$ 9.84% 375,016,024$ 13.62%
Total Taxable
Assessed Value 6,740,344,392$ 2,752,562,574$
*Source: Guadalupe, Bexar, and Comal Appraisal Districts
2023 2014
CITY OF SCHERTZ, TEXAS
PRINCIPAL PROPERTY OF TAX PAYERS
CURRENT YEAR AND NINE YEARS AGO
101
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TABLE 10
Fiscal Year Taxes Levied Collections In
Ended for the % of Subsequent % ofSeptember 30,Fiscal Year Amount Levy Years Amount Levy
2023 26,144,518$ 25,757,953$ 98.52%-$ 25,924,108$ 99.16%
2022 22,951,478 22,775,565 99.23%137,846 22,788,154 99.29%
2021 22,011,090 21,787,625 98.98%42,135 21,829,760 99.18%
2020 20,854,329 20,758,493 99.54%83,627 20,842,120 99.94%
2019 19,922,568 19,825,244 99.51%87,805 19,913,049 99.95%
2018 18,010,824 17,899,825 99.38%74,548 17,974,373 99.80%
2017 17,356,822 17,241,556 99.34%74,294 17,314,231 99.75%
2016 16,238,180 16,160,248 99.52%59,072 16,218,083 99.88%
2015 14,793,867 14,738,760 99.63%45,615 14,783,490 99.93%
2014 13,383,759 13,297,258 99.35%68,652 13,365,670 99.86%
Collected Within Total CollectionsFiscal 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
2023 2022 4,734,929,478$ 2,047,253,554$
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
*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
(784,132,143)$ 742,293,503$ 6,740,344,392$ 0.4950
(961,929,765) 232,196,469 4,205,887,894 0.5121 (716,028,336) 276,109,231 4,126,637,372 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 3,783,027,833 0.4911
(649,173,041) 132,002,406 3,647,504,903 0.4911 (544,328,535) 130,353,515 3,375,850,131 0.4974
(460,271,461) 135,084,054 3,037,267,611 0.4974 (340,747,650) 107,013,520 2,752,562,574 0.4999
104
General Certificates Certificates General
Fiscal Obligation of Tax Financing of Obligation
Year Bonds Obligation Notes Arrangement Obligation Bonds
2023 54,504,618$ 25,983,440$ -$ 113,779$ 23,529,237$ 4,087,062$
2022 58,837,302 27,869,333 - 109,228 24,216,388 5,111,592
2021 40,390,000 14,200,000 155,000 136,535 10,655,000 2,895,000
2020 44,620,000 15,415,000 345,000 25,695 11,200,000 3,685,000
2019 48,320,000 16,235,000 530,000 25,699 12,330,000 4,445,000
2018 52,752,896 13,636,966 715,000 34,264 13,211,178 2,127,657
2017 56,613,614 9,011,415 1,230,000 25,147 8,174,779 2,533,626
2016 56,352,272 4,057,189 1,740,000 58,321 8,331,966 3,014,595
2015 53,410,128 277,801 1,210,000 91,495 8,946,153 3,490,564
2014 56,487,433 543,934 1,585,000 123,370 9,561,204 3,966,533
Governmental Activities
CITY OF SCHERTZ, TEXAS
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Business-Type Activities
105
TABLE 12
Total Percent
Financing Tax Primary of Gross Per
Arrangement Notes Government Income Capita
410,877$ -$ 108,629,013$ 5.82%2,526$
327,685 - 116,471,528 5.24%2,034
475,121 - 68,906,656 4.25%1,619
134,662 150,000 75,575,357 4.50%1,769
199,421 460,000 82,545,120 5.60%1,932
289,553 765,000 83,532,514 5.98%2,028
92,721 1,065,000 78,746,302 6.22%1,996
162,262 1,360,000 75,076,605 6.39%1,979
231,803 1,640,000 69,297,944 5.99%1,830
347,705 65,000 72,680,179 6.35%1,992
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
2023 58,591,680$ 49,512,677$ (867,965)$ 107,236,392$ 1.59%2,493$
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 1.63%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
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 809,962,090$ 0.38%3,077,856$
Bexar County 2,207,225,000 0.38%8,387,455
Bexar County Hospital District 1,168,200,000 0.38%4,439,160
Comal County 121,175,000 3.59%4,350,183
Comal ISD 1,049,362,848 3.98%41,764,641
East Central ISD 101,935,155 3.34%3,404,634
Guadalupe County 13,145,000 18.29%2,404,221
Judson ISD 552,986,085 0.03%165,896
Schertz-Cibolo-Universal ISD 374,839,507 46.55%174,487,790
Subtotal, Overlapping Debt 242,481,835
City Governmental Activities Direct Debt 80,601,837
TOTAL NET OVERLAPPING DEBT 323,083,672$
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, 2022 Tax Roll 6,740,344,392$
674,034,439$
Amount of Applicable Debt:
General Bonded Debt 75,468,779$
Less Debt Service Net Position (867,965) 74,600,814
DEBT MARGIN 599,433,625$
Total Net Debt as a Percentage
of Debt Margin 12.45%
2019 2020 2021 2022
Assessed Value 3,900,769,022$ 4,152,459,607$ 4,070,815,340$ 6,740,344,392$
Debt Limit 390,076,902 415,245,961 407,081,534 674,034,439
Total Net Debt Applicable to Limit 66,019,954 61,318,507 53,946,636 74,600,814
Total Debt Margin 324,056,948$ 353,927,454$ 353,134,898$ 599,433,625$
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
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.
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
2023 31,283,976$ 29,200,652$ 2,083,324$ 1,580,000$ 1,017,794$ 0.80
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
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
2023 43,010 1,734,335,240$ 40,324$ 39.0 15.9 15,573 3.6%
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%
CITY OF SCHERTZ, TEXAS
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
Sources:Population, personal income, median age and education level informaiton provided by City
Economic Development Corporation. School enrollment provided by Schertz-Cibolo-Universal City
Independent School District. Unemployment data provided by Texas Workforce Commission.
111
TABLE 18
2023
Employer Employees
Percentage
of Total City
Employment Employees
Percentage
of Total City
Employment
Schertz-Cibolo-Universal City ISD 1,900 8.33% 1,753 10.92%
Amazon 1,061 4.65% 674 4.20%
Sysco Central Texas, Inc 827 3.62% 810 5.04%
FedEx Ground - Doerr Lane, Schertz 700 3.07% - -
Republic National Distributing Company 639 2.80% 250 1.56%
Brandt Companies 527 2.31% 450 2.80%
Visionworks 450 1.97% 410 2.55%
City of Schertz 437 1.92% 345 2.15%
Hollingsworth Logistics Group 400 1.75% - -
FedEx Freight 300 1.31% - -
H.E.B Grocery Co.350 2.18%
Wal-mart Stores 320 1.99%
CST Distribution 305 1.90%
TOTAL 7,241 31.74% 5,667 35.29%
Source: City Economic Development Corporation
2014
CITY OF SCHERTZ, TEXAS
TOP TEN PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
112
Function 2014 2015 2016 2017
General Government
City Manager 6 6 5 5
Court Support - - - -
Municipal Court 6 6 6 6
Customer Relations 5 5 5 5
Planning and Zoning 3 3 4 4
General Services 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 7 7
GIS 2 2 2 2
Information Technology 6 6 6 7
Human Resources 4 4 5 5
Finance 6 8 8 8
Purchasing 3 3 3 3
Fleet Service 4 6 6 6
Building Maintenance 2 3 - -
Facility Services - - 16 16
Public Safety
Police 75 75 78 81
Fire 33 33 36 39
Inspections 8 9 8 8
Marshal Services 8 8 8 5
Health
Animal Control 7 7 8 8
Environmental Health - - 3 3
Parks and Culture
Parks 9 9 9 10
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 4 4
Business Office 10 10 10 10
Water and Sewer 16 16 16 16
Drainage 8 8 6 6
EMS 36 37 39 41
Economic Development 4 4 4 4
TOTAL 321 328 340 347
Source: City Adopted Budgets
LAST TEN FISCAL YEARS
FULL-TIME EQUIVALENT CITY GOVERNMENTAL EMPLOYEES BY FUNCTION
CITY OF SCHERTZ, TEXAS
Full-Time Equivalent Employees as of September 30,
113
TABLE 19
2018 2019 2020 2021 2022 2023
5 5 5 5 5 5
- - - - - -
6 4 4 4 4 4
5 3 3 3 3 3
4 3 3 4 4 4
- - - - - -
2 2 2 2 2 2
5 5 5 4 4 4
- - - - - -
- - - - - -
7 7 8 8 10 10
2 2 2 2 3 3
8 8 8 8 9 9
5 5 5 5 5 5
8 7 7 7 7 7
3 3 3 3 3 3
6 7 8 8 9 9
- - - - - -
17 10 10 11 11 11
86 86 87 90 94 94
45 45 46 46 50 50
11 12 12 12 14 14
- - - - - -
7 7 8 9 9 9
4 4 4 5 6 6
12 11 11 11 15 15
- - - - - -
1 5 5 6 7 7
15 14 14 14 15 15
14 14 17 17 17 17
4 4 4 4 4 4
10 9 9 9 9 9
19 19 19 21 21 21
8 8 8 8 8 8
45 45 45 55 65 65
4 4 4 4 4 4
368 358 366 385 417 416
Full-Time Equivalent Employees as of September 30,
114
Function 2014 2015 2016 2017General Government Building Project Permits Issued 2,869 3,087 5,919 4,800
Food Establishment Permits 82 135 145 201
Food Establishment Inspection 218 136 153 133 Foster/Adoption Inspections 16 22 21 21
Schertz Magazine
Number of Magazines printed 180,000 180,000 180,000 180,000
Police
CFS 19,067 36,138 39,064 34,428
Arrests 686 595 603 423
Traffic Violations 15,077 12,306 8,960 8,001
Accidents 1,823 2,040 2,119 2,057
Fire Number of Rescue/Other Responses 1,759 2,167 2,327 2,758
Number of Fire Responses 110 99 67 86
Number of Inspections 252 698 440 519
Number of Training Classes Conducted 125 150 460 340
Number of Pre-Plan Inspections 735 980 867 922
EMS
Requests for Transport 8,840 9,286 9,723 9,956
Actual Transports 5,713 6,118 6,123 6,201 EMT Students 87 84 89 90
Marshal's Office
Warrants Issues 2,354 3,798 2,587 2,816
Warrants Cleared 3,781 3,691 3,492 2,822
Parks
Facility Reservations 301 275 240 251
Community and Civic Centers
Civic Center Reservations 458 478 483 590
Community Center Reservations 437 455 370 455
North Community Center Reservations 244 209 185 230
Animal Services
Number of Animals Handled 1,218 1,304 1,313 1,283
Number of Adoptions 309 357 410 348
Number of Return to Owners 222 213 205 228 Number of Transfers 316 296 316 326
Library
Annual Circulation 395,998 394,766 399,622 385,206
Library Visits 253,237 259,413 255,109 235,428
Library Program Attendance 15,048 13,825 15,282 16,814
Registered Users 30,759 31,138 30,702 31,432
CITY OF SCHERTZ, TEXAS
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Fiscal Year
115
TABLE 20
2018 2019 2020 2021 2022 2023
5,251 4,748 2,993 4,474 4,000 3,500
181 55 189 159 173 172
211 96 209 192 142 146188101159
180,000 180,000 187,500 189,700 191,700 192,000
45,190 41,327 57,149 29,007 32,170 30,667
624 603 527 416 326 355
11,359 12,541 8,326 6,980 6,504 5,924
2,244 2,304 1,752 2,076 2,341 2,085
3,055 3,804 3,953 4,837 4,895 4,994
161 100 108 205 232 182
562 528 500 548 547 674
600 804 763 770 632 1,032
788 865 814 848 324 320
10,059 10,759 10,713 12,251 13,520 14,495
6,165 6,738 6,549 7,444 8,332 9,154909084123154136
1,598 2,036 1,738 2,095 1,708 1,083
2,022 1,834 664 1,451 1,373 4,243
248 241 75 237 294 334
516 441 293 353 354 416
381 326 193 291 299 276
235 188 92 153 197 196
926 1,157 1,015 1,070 1,125 1,217
319 366 450 329 371 419
218 233 335 284 252 279297227188152205202
414,790 447,379 254,643 281,659 359,272 397,156
258,695 237,821 102,297 91,291 157,428 194,260
16,945 18,412 6,524 2,541 11,357 14,700
30,806 33,104 31,296 30,291 29,612 28,734
Fiscal Year
116
Function 2014 2015 2016 2017
CITY OF SCHERTZ, TEXAS
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Fiscal Year
Water
New Connections 235 369 213 303
Water Main Breaks 45 45 45 45
Total Consumption (hundreds of gallons)15,497,071 14,757,134 16,097,931 15,222,373
Daily Average Consumption
(thousands of gallons)42,458 40,431 43,942 41,705 Peak Daily Consumption (thousands of gallons)10,089 8,385 10,985 11,000 Total Customers 13,324 13,570 13,877 14,124 Average Use Per Connection 5,467 5,135 5,352 5,244
Sewer Total Customers 11,748 12,058 12,282 12,398
Facilities Maintenance Number of Buildings Maintained 19 21 21 21 Square Footage 166,591 234,202 234,202 234,202
Source: Various City Department
117
TABLE 20
2018 2019 2020 2021 2022 2023
Fiscal Year
235 300 357 342 291 460
50 52 65 38 64
15,833,124 17,602,330 19,766,870 16,171,200 21,606,589 23,637,420
43,378 48,225 54,155 59,377 59,190 64,760
9,083 11,094 14,011 9,160 8,42914,678 16,434 13,683 15,861 16,228 16,0375,294 4,587 5,600 101,955 133,143 5,156
12,866 12,853 13,112 14,128 14,295 14,334
25 26 27 26 28 24245,218 257,218 257,218 257,218 257,218 273,970
118
Function 2014 2015 2016 2017Police
Stations 1 1 1 1
Police Vehicles 42 48 50 64
Fire
Stations 2 2 2 2
Training Facility - - - -
Fire Vehicles 15 16 16 16
EMS
Ambulances 7 9 9 8
Marshal's Office
Vehicles 7 7 7 7
Streets Streets, paved (miles)141 149 153 159
Streets, unpaved (miles)5 5 5 5
Sidewalks (miles)
Parks and Recreation
Parks - Developed 13 14 15 20
Parks - Undeveloped 8 9 10 4
Playground 16 18 19 19
Swimming Pools 2 2 2 4 Baby Pools 2 2 2 2
Baseball/Softball Diamonds 12 15 15 15
Soccer Fields 12 12 12 12
Community Centers 4 4 4 4
Splash Pads
Animal Services
Control Vehicle 3 3 4 3
Library
Facility 1 1 1 1
Volumes in Collection 100,478 113,085 97,412 107,382
Water
Number of Reservoirs - - - -
Number of Pump Stations 5 5 5 5
Water Mains (miles)199 210 213 221
Sewer
Sanitary Sewers (miles)90 96 98 110
Storm Sewers (miles)11 12 12 12
Facilites Services
Vehicles 5 6 6 6
Fleet
Generators 3 4 4 4
Vehicles & Equipment NA NA NA NA
Source: Various City DepartmentNotes: No Capital Asset indicators are available for the General Government or EMS function.
CITY OF SCHERTZ, TEXAS
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Fiscal Year
119
TABLE 21
2018 2019 2020 2021 2022 2023
1 1 1 1 1 1
69 68 72 66 76 90
3 3 3 3 3 3
- - - - - -
18 19 20 20 24 24
8 9 9 10 11 12
7 7 7 7 3 NA
153 165 165 168 172 180
5 5 5 5 5 5
21 21 21 21 21 21
4 4 4 5 5 5
19 20 21 21 36 36
4 4 4 4 3 3 2 2 2 2 1 1
15 15 15 15 15 15
12 12 12 12 12 12
4 4 4 4 4 4
2
4 4 6 6 8 8
1 1 1 1 1 1
110,266 150,972 139,447 149,965 155,715 160,533
- - - - - -
5 5 6 7 6 6
225 228 229 231 236 246
113 116 116 120 124 133
14 14 14 15 16 17
11 11 10 8 10 9
7 10 7 8 11 11
384 352 341 376 373 420
Fiscal Year
120
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