25-R-034 FY23-24 Annual Comprehensive Financial ReportRESOLUTION 25-R-034
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF
SCHERTZ, TEXAS AUTHORIZING THE APPROVAL OF THE ANNUAL
COMPREHENSIVE FINANCIAL REPORT FOR FISCAL YEAR 2023-24.
WHEREAS, the City staff of the City of Schertz (the "City") has recommended that the
City Council approve the Annual Comprehensive Financial Report(ACFR) for Fiscal Year 2023-
24 ; and
WHEREAS, the Audit Committee has recommended that it is in the best interest of the
City to approve the Annual Comprehensive Financial Report for Fiscal Year 2023-24; and
WHEREAS, the City Council has determined that it is in the best interest of the City to
approve the Annual Comprehensive Financial Report for Fiscal Year 2023-24.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SCHERTZ, TEXAS THAT:
Section 1. The City Council hereby authorizes the approval of the Annual
Comprehensive Financial Report for Fiscal Year 2023-24, Exhibit A.
Section 2. The recitals contained in the preamble hereof are hereby found to be true,
and such recitals are hereby made a part of this Resolution for all purposes and are
adopted as a part of the judgment and findings of the City Council.
Section 3. All resolutions, or parts thereof, which are in conflict or inconsistent with
any provision of this Resolution are hereby repealed to the extent of such conflict, and the
provisions of this Resolution shall be and remain controlling as to the matters resolved
herein.
Section 4. This Resolution shall be construed and enforced in accordance with the
laws of the State of Texas and the United States of America.
Section 5. If any provision of this Resolution or the application thereof to any person
or circumstance shall be held to be invalid, the remainder of this Resolution and the
application of such provision to other persons and circumstances shall nevertheless be
valid, and the City Council hereby declares that this Resolution would have been enacted
without such invalid provision.
Section 6. It is officially found, determined, and declared that the meeting at which
this Resolution is adopted was open to the public and public notice of the time, place, and
subject matter of the public business to be considered at such meeting, including this
Resolution, was given, all as required by Chapter 551, Texas Government Code, as
amended.
Section 7. This Resolution shall be in force and effect from and after its final
passage, and it is so resolved.
PASSED AND ADOPTED, this day of Me,,NC'�,2 025.
CITY OF SCHERTZ, TEXAS
Rafae G tierr z ay or
ATTEST:
Sheree Courney, Deputy City Secretary C �
Exhibit A
Annual Comprehensive Financial Report
September 30, 2024
CITY OF SCHERTZ, TEXAS
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED
SEPTEMBER 30, 2024
rCITY"'
*1114"l
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RAI
OFFICIALS ISSUING REPORT
Steve Williams
City Manager
James Walters
Director of Finance
CITY OF SCHERTZ, TEXAS
FOR THE YEAR ENDED SEPTEMBER 30, 2024
TABLE OF CONTENTS
Page
Number
INTRODUCTORY SECTION
Letter of Transmittal ' - '
CityOfficials................................................................................................................. v
OrganizationalChart..................................................................................................... vi
Certificate of Achievement............................................................................................. vii
FINANCIAL SECTION
Independent Auditor's Report. -
Management Discussion and Analysis.............................................................................. 4 - 12
Basic Financial Statements
Government -Wide Financial Statements:
Statement of Net Position......................................................................................... 13 - 14
Statementof Activities.............................................................................................
15 - 16
Fund Financial Statements:
Governmental Funds
BalanceSheet........................................................................ ................
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 ........................................................
Notes to the Financial Statements.............................................................................
28 - 54
Required Supplementary Information
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - General Fund - Budget and Actual - 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 - 64
Schedule of Changes - City Retiree Health Other Post -Employment
Benefit Liability and Related Ratios............................................................................ 65 - 66
Combining and Individual Fund Statements and Schedules
Comparative Balance Sheets - General Fund................................................................. 67
Comparative Schedules of Revenues, Expenditures, and Changes in
Fund Balance - General Fund................................................................................. 68
Comparative Balance Sheets - Economic Development Corporation ................................. 69
Comparative Schedules of Revenues, Expenditures, and Changes in
Fund Balance - Economic Development Corporation ................................................. 70
Comparative Balance Sheets - Debt Service Fund.......................................................... 71
Schedule of Revenues, Expenditures, and Changes
in Fund Balance - Budget and Actual - Debt Service Fund ......................................... 72
Comparative Balance Sheets - Capital Projects Fund ...................................................... 73
Comparative Schedules of Revenues, Expenditures, and Changes in
Fund Balance - Capital Projects Fund ........................................ ....... 74
.......................
Combining Balance Sheet - Nonmajor Governmental Funds ............................................ 75 - 76
Combining Schedule of Revenues, Expenditures, and
Changes in Fund Balances - Nonmajor Governmental Funds ...................................... 77 - 78
Schedule of Revenues, Expenditures, and Changes
in Fund Balance - Budget and Actual - Hotel Occupancy Fund ................................... 79
Schedule of Revenues, Expenditures, and Changes
in Fund Balance - Budget and Actual - Park Fund ..................................................... 80
Schedule of Revenues, Expenditures, and Changes
in Fund Balance - Budget and Actual - Tree Mitigation Fund ...................................... 81
Schedule of Revenues, Expenditures, and Changes
in Fund Balance - Treasury Forfeitures Fund............................................................ 82
Schedule of Revenues, Expenditures, and Changes
in Fund Balance - Justice Forfeitures Fund............................................................... 83
Schedule of Revenues, Expenditures, and Changes
in Fund Balance - State Forfeitures Fund................................................................. 84
Schedule of Revenues, Expenditures, and Changes
in Fund Balance - Budget and Actual - Library Advisory Board Fund ........................... 85
Schedule of Revenues, Expenditures, and Changes
in Fund Balance - Budget and Actual - Historical Committee Fund .............................. 86
Schedule of Revenues, Expenditures, and Changes
in Fund Balance - Capital Recovery Roadways ......................................................... 87
STATISTICAL SECTION
Net Position by Component..............................................................................
1
88 - 89
Changein Net Position....................................................................................
2
90 - 93
Fund Balances of Governmental Funds..............................................................
3
94 - 95
Changes in Fund Balances, Governmental Funds .................................................
4
96 - 97
Tax Revenue by Source - Governmental Funds ..................................................
5
98 - 99
Total Water and Sewer Consumption and Rates ..................................................
6
100
Principal Water and Sewer Consumers...............................................................
7
101
Direct and Overlapping Property Tax Rates ........................................................
8
102
Principal Property Taxpayers............................................................................
9
103
Property Tax Levies and Collections..................................................................
10
104
Taxable Assessed Value...................................................................................
it
105 - 106
Ratios of Outstanding Debt by Type..................................................................
12
107 - 108
Ratios of General Bonded Debt Outstanding.......................................................
13
109 - 110
Direct and Overlapping Governmental Activities Debt ..........................................
14
111
Debt Margin Information..................................................................................
15
112
Pledged Revenue Coverage..............................................................................
16
113
Demographic and Economic Statistics................................................................
17
114
Top Ten Principal Employers.............................................................................
18
115
Full -Time Equivalent City Governmental Employers by Function ............................
19
116 - 117
Operating Indicators by Function/Program.........................................................
20
118 - 121
Capital Asset Statistics by Function/Program......................................................
21
122 - 123
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INTRODUCTORY SECTION
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COMMUNITY
SCHIERTZ I o po Tu n
March 18, 2025
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, 2024.
This report consists of management's representations concerning the finances of the City of Schertz.
Consequently, management assumes full responsibility for the completeness and reliability of all the information
presented in this report. To provide a reasonable basis for making these representations, management of the City
of Schertz has established a comprehensive internal control framework that is designed both to protect the
government's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation
of the City of Schertz's financial statements in conformity with U.S. GAAP. Because the cost of internal controls
should not outweigh their benefits, the City of Schertz comprehensive framework of internal controls has been
designed to provide reasonable rather than absolute assurance that the financial statements will be free from
material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial
report is complete and reliable in all material respects.
The City of Schertz's financial statements have been audited by Pattillo, Brown & Hill, LLP a firm of licensed
certified public accountants. The goal of the independent audit was to provide reasonable assurance that the
financial statements of the City of Schertz for the fiscal year ended September 30, 2024, are free of material
misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements; assessing the accounting principles used and significant estimates made
by management; and evaluating the overall financial statement presentation. The independent auditor concluded,
based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the City of
Schertz's financial statements for the fiscal year ended September 30, 2024, are fairly presented in conformity
with U.S. GAAP. The independent auditor's report is presented as the first component of the financial section of
this report.
GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic
financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal
is designed to complement MD&A and should be read in conjunction with it. The City of Schertz's MD&A can
be found immediately following the report of the independent auditors.
Profile of the Government
The City of Schertz, incorporated in 1958, is located in the central part of Texas, which is considered to be a top
growth area in the state, and one of the top growth areas in the country. The City of Schertz currently occupies a
land area of 32.21 square miles with a population of 43,239 in 2023 according to the US Census Bureau. The City
of Schertz is empowered to levy a property tax on both real and personal properties located within its boundaries.
It also is empowered by state statue to extend its corporate limits by annexation, which occurs periodically when
deemed appropriate by the governing body.
1400 Schertz Parkway * Schertz, Texas 78154 210.619.1000 r schertz.com
COMMUNITY
SCHIERTZ I SERVICE
OPPORTUNITY
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
councilmembers. The City Council is responsible for establishing public policy on City matters by the passage of
appropriate ordinances and resolutions. The City Manager is responsible for overseeing the day-to-day operations
of the government, implementing policy established by City Council, and for appointing the heads of the various
departments. The council is elected on a non -partisan basis. Council members serve three-year staggered terms,
with two council members elected every three years and then three council members elected the final three years
in the cycle. The mayor is elected to serve a three-year term.
The City of Schertz provides a full range of services, including police and fire protection, EMS services, library
services, the construction and maintenance of streets, recreational facilities, cultural events, and water and sewer
services.
The annual budget and five-year forecast serve as the foundation for the City of Schertz's financial planning and
control. All city departments are required to submit requests for appropriation to the City Manager by June of
each year. The City Manager uses these requests as the starting point for developing a proposed budget. The City
Manager then presents the proposed budget to the council for review in early August. The council then holds
public hearings and community meetings on the proposed budget and to adopt a final budget by September 301.
The fiscal year for Schertz is from October 1 through September 30. The appropriated budget is prepared by each
department (e.g. police). The City Manager may make transfers of appropriations within a department. The City
Manager may make transfers between departments and funds with City Council approval. Budget to actual
comparisons are provided in this report for each individual governmental fund for which an appropriated annual
budget has been adopted. For the general fund, this comparison is presented on pages 55-56 as part of the required
supplementary information.
Factors Affectine 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 2024. The surrounding metro area saw growth evidenced by the
Federal Reserve Bank of Dallas reporting the San Antonio Business -Cycle Index increase 2.17% year over year
for September 2024. This Index has decreased below its long term trend and continues to indicate economic
expansion, however the rate of expansion is slowing as markets had started to expect an economic downturn
nationwide. As of September 2024, the unemployment rate for Texas was 4.1% and San Antonio -New Braunfels
area was lower at 3.8%. Schertz mirrors the local area unemployment rate still indicating full employment.
As another indicator of economic growth, the City of Schertz realized a 2.3% 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. This data
mirrors the slowdown seen in the Business Cycle index for the local economy is growing but at a reduced rate.
The Schertz economy may be starting to pick back up as new residential construction was strong in 2024, more
than doubling the amount of permit revenue on new home construction from 2023 and new commercial permit
revenue grew 22.4%. Development indicates population growth and business growth could improve the Schertz
economy in the coming years.
Industrial development continued along IH 35 with an additional 773,343 sq ft of spec industrial space under
construction at 22867 IH 35. Other development includes Royal Manufacturing Phase III for an additional
196,560 sq ft of industrial space.
1400 Schertz Parkway Schertz, Texas 78164 * 210.619.1000 * schertz.com
IE
COMMUNITY
SCHHERTZ I SERVICE
OPPORTUNITY
A new retail development has begun with the Schertz Sation Shopping Center, the first major retail development
in 20 years. The development at Cibolo Valley Drive and IH 35 will include 250,0000 sq ft of shopping anchored
by Home Depot and several restaurants and serve -related businesses.
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 2021, the City placed I bond proposition before voters totally $15.45 million for Fire Station number
4 which passed. The funds for the new fire station were issued in 2022 and the fire engine and the land have been
purchased with engineering and design for the building are underway.
Current Year Budget Initiatives. For FY 2024-25, the city had $700,000 in non -discretionary items that include
utility costs and IT upgrades for Police and Public Safety to maintain Federal security guidelines.
Expanded programs included a pay increases for employees totaling $1.3 million based on rising public sector
wages, performance, and tenure.
There were 6 new positions approved in the Water & Sewer Fund, 3 in EMS, and no positions in the General
Fund. The Water & Sewer Fund was approved for 5 Water/Wastewater Worker I positions and a Meter
Technician. EMS was approved for 2 paramedics and a Battalion Chief.
Other initiatives include $3,000,000 transfer to the capital project fund for infrastructure projects and $480,000
for equipment replacements in Water & Sewer including a minidump truck and worker vehicles.
Financial Information:
Internal Control. Management is responsible for establishing and maintaining internal controls designed to
ensure that assets of the City are protected from loss, theft or misuse and to provide adequate accounting
information compiled to allow for the preparation of financial statements in conformity with generally accepted
accounting principles for local governments as prescribed by the Governmental Accounting Standards Board
(GASB), the Financial Accounting Standards Board (FASB) and the American Institute of Certified Public
Accountants (AICPA). The internal control system is designed to provide reasonable, but not absolute assurance
that these objectives are met. The concept of reasonable assurance recognizes that the cost of an internal control
should not exceed the benefits derived from the internal control. The City utilizes financial accounting software
which is designed with a system of internal controls. These controls are continually being reevaluated to provide
reasonable, but not absolute, assurances.
Budget Controls. The City also utilizes budgetary controls. Legally expenditures cannot exceed the appropriated
amount. The objective of these budgetary controls is to ensure compliance with the adopted budget approved by
the City Council as mandated by the city charter and state law. The levels of budgetary control are established at
the line -item basis and at the fund level. Staff believes these controls help monitor and direct approved
expenditures to a level within the budget parameters which directly results in a strong financial performance.
Financial Results. Assets and fund balances continue to grow as the City grows and financial results remain
strong. While additional debt was issued during the year, Staff closely monitors and plans the amount of issuance
to keep steady debt ratios per capita, per revenue, and per operations tax rate to the debt tax rate. Examples of
these ratios can be found in the Statistical Section on pages 105-110. A more detailed summary of the City's
Financial Performance is available in the Management Discussion and Analysis section on page 4.
1400 Schertz Parkway Schertz, Texas 78164 210.619.1000 * schertz.com
H
COMMUNITY
SCHIERTZ I SERVICE
OPPORTUNITY
Independent Audit. Every year an independent audit is performed of the general ledger, accounts, financial
records, and transactions of all city departments. The audit is completed by an independent certified public
accounting firm selected by the City Council. The City is in compliance with this requirement and the independent
auditor's report by Pattillo, Brown & Hill, LLP. Certified Public Accountants, has been included in this report.
Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of
Achievement for Excellence in Financial Reporting to the City of Schertz for its annual comprehensive financial
report for the fiscal year ended September 30, 2023. This was the 38th consecutive year that the City has received
this prestigious award. In order to be awarded a Certificate of Achievement, the City must publish an easily
readable and efficiently organized annual comprehensive financial report. This report must satisfy both generally
accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe our current annual comprehensive
financial report continues to meet the Certificate of Achievement Program's requirements and we will be
submitting it to the GFOA to determine its eligibility for another certificate.
The preparation of this report would not have been possible without the efficient and dedicated services of the
entire staff of the finance department. We would like to express our appreciation to all members of the department
who assisted and contributed to the preparation of this report.
In conclusion, we would have none of the success we have enjoyed without the assistance of each and every staff
member, as well as the support and strategic direction from the Mayor and the City Council during the strategic
planning, pre -budget, and budget approval process.
Respectfully submitted,
Steve Williams
City Manager
1400 Schertz Parkway
James P. Walters
Finance Director
Schertz, Texas 78164 210.619.1000 schertz.com
iv
CITY OF SCHERTZ, TEXAS
MAYOR
MAYOR PRO-TEM
CITY COUNCIL
CITY MANAGER
DIRECTOR OF FINANCE
CITY ATTORNEY
CITY OFFICIALS
v
RALPH GUTIERREZ
ROBERT WESTBROOK
MARK E. DAVIS
MICHELLE WATSON
PAUL MACALUSO
TIFFANY GIBSON
ROBERT WESTBROOK
ALLISON HEYWARD
TIM BROWN
STEVE WILLIAMS
JAMES WALTERS
DAN SANTEE
City Mana@
Steve Willia
Executive Assistant
Fire Deputy City
Manager
Greg Rodgers Brian James
Economic
Development Engineering
Planning & Internal Services
Development
EMS Assistant City Police
Manager
Jason Mabbitt Sarah Gonzalez Jim Lowery
Finance . Park & Recreation
Utility Billing
Planning ZMIMi Fleet M Municipal Court
Civic Center
Building Inspections Facilities Library Public Affairs
Neighborhood Information Customer Care/311
Services Technology
Geographic
Information Human Resources
Systems
Public Works
Streets & Drainage
Water & Sewer
Purchasing
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, 2023
Executive Director/CEO
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FINANCIAL SECTION
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PATTILLO, BROWN & HILL, L.L.P.
401 West State Highway 6
Waco, Texas 76710
254.772.4901 I phhcpa com
INDEPENDENT AUDITOR'S REPORT
Honorable Mayor and
Members of the City Council
City of Schertz, Texas
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business -type activities,
each major fund, and the aggregate remaining fund information of the City of Schertz, Texas (the "City"), as
of and for the year ended September 30, 2024, 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, 2024, 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 10.6 percent and 12.6 percent, respectively, of the assets and net position of the Water and Sewer
Fund, and 10.4 percent and 12.5 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.
OFFICE LOCATIONS
TEXAS i 1'i/aco Temple ! Hillsboro ! Houston
NEW MEXICO 1 Albuquerque
1 AICPA
GAQC Member
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that
includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and
therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing
Standards will always detect a material misstatement when it exists. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are
considered material if there is a substantial likelihood that, individually or in the aggregate, they would
influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether
due to fraud or error, and design and perform audit procedures responsive to those risks.
Such procedures include examining, on a test basis, evidence regarding the amounts and
disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the City's internal control. Accordingly, no such opinion is
expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of
the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the
aggregate, that raise substantial doubt about the City's ability to continue as a going concern
for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit, significant audit findings, and certain internal control -
related matters that we identified during the audit.
Report on Summarized Comparative Information
We have previously audited the City of Schertz, Texas' fiscal year 2023 financial statements, and we
expressed an unmodified audit opinion on those audited financial statements in our report dated March 17,
2024. In our opinion, the summarized comparative information presented herein as of and for the year ended
September 30, 2023, is consistent, in all material respects, with the audited financial statements from which it
has been derived.
2
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis, budgetary comparison information, and pension and OPEB information
be presented to supplement the basic financial statements. Such information, although not a part of the basic
financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an
essential part of financial reporting for placing the basic financial statements in an appropriate operational,
economic, or historical context. We have applied certain limited procedures to the required supplementary
information in accordance with auditing standards generally accepted in the United States of America, which
consisted of inquiries of management about the methods of preparing the information and comparing the
information for consistency with management's responses to our inquiries, the basic financial statements, and
other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion
or provide any assurance on the information because the limited procedures do not provide us with sufficient
evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City's basic financial statements. The combining and individual nonmajor fund
financial statements and schedules are presented for purposes of additional analysis and are not a required
part of the basic financial statements. Such information is the responsibility of management and was derived
from and relates directly to the underlying accounting and other records used to prepare the basic financial
statements. Such information has been subjected to the auditing procedures applied in the audit of the basic
financial statements and certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepare the basic financial statements or to
the basic financial statements themselves, and other additional procedures in accordance with auditing
standards generally accepted in the United States of America. In our opinion, the combining and individual
nonmajor fund financial statements and schedules are fairly stated, in all material respects, in relation to the
basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual comprehensive financial
report (ACFR). The other information comprises the introductory section and statistical section but does not
include the financial statements and our auditor's report thereon. Our opinions on the financial statements do
not cover the other information, and we do not express an opinion or any form of assurance thereon. In
connection with our audit of the financial statements, our responsibility is to read the other information and
consider whether a material inconsistency exists between the other information and the financial statements,
or the other information otherwise appears to be materially misstated. If, based on the work performed, we
conclude that an uncorrected material misstatement of the other information exists, we are required to
describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March 17,
2025, 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. j
.1
Waco, Texas
March 17, 2025
3
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MANAGEMENT'S
DISCUSSION AND ANALYSIS
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MANAGEMENT'S DISCUSSION AND ANALYSIS
As management of the City of Schertz, we offer readers of the City's financial statements this narrative overview and
analysis of the financial activities of the City of Schertz for the fiscal year ended September 30, 2024. 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 $373,837,780 (net position). Of this amount, $48,225,235 (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 $28,702,437. This was less than the increase of $48,390,437 in the prior
year due to reduced revenue from capital contributions.
As of the close of the current fiscal year, the City's governmental funds reported combined ending fund balances of
$112,876,964, an increase of $30,183,161 in comparison with the prior year. The primary cause of this increase was
an increase in property and sales tax revenues that exceeded expenditure growth.
At the end of the fiscal year, the combined total of the General Fund assigned and unassigned fund balances was
$14,942,520 which is 33.75% 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.
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.
4
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 $373,837,780
at the close of the most recent fiscal year. The largest portion of the City's total net position (72%) 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.
An additional portion of the City's total net position (15%) represents resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net position, $48,225,235, may be
used to meet the government's ongoing obligations to citizens and creditors.
5
At the end of the current fiscal year, the City of Schertz is able to report positive balances in all three categories of
net position, both for the government as a whole, as well as for its separate governmental and business -type
activities. The same situation held true for the prior fiscal year.
City of schertz's Net Position
Government -Wide
Governmental
Business -Type
Activities
Activities
Total
2024
2023
2024
2023
2024
2023
Current and other assets
$ 125,153,191
$ 97,512,162 $
66,639,490
$ 64,573,716
$191,792,681
$162,085,878
Capital assets
194,684,592
194,268,903
144,205,606
_135,961,908
338,890,205
330,230,811
Total assets
319,837,790
291,781,065
210,845,096
200,535,624
530,682,886
492,316,689
Deferred outflows of resources
7,156,736
9,428,168
2,348,408
3,008,848
9,505,144
12,437,016
Current liabilities
17,855,465
18,488,692
8,146,445
9,086,822
26,001,910
27,575,514
Long-term liabilities
107,487,141
96,863,509
31,131,477
33,494,784
138,618,618
130,358,293
Total liabilities
12�2-,606
115,352,201
39,277,922
42,581,606
164,620,528
157,933,807
Deferred inflows of resources
1,355,792
1,334,836
373,930
349,719
1,729.722
_1,684,555
Net position:
Net investment in capital assets
142,891,901
136,442,093
125,867,091
114,831,425
268,758,992
251,273,518
Restricted
50,212,797
40,311,118
6,640,756
6,640,756
56,853,553
46,951,874
Unrestricted
7,191,430
7,768,985
41,033,805
39,140,966
48,225,235
46,909.951
Total net position
S 200.296.128
$184,522,196 s
173.541.6�52
5160, 113,147
373,837,780
.345,135,343
The government's net position increased by $28,702,437 during the current fiscal year. The primary cause for the
increase was increased revenues; the City recognized approximately $11.7 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.
The following table indicates changes in net position for governmental and business -type activities followed by
graphs displaying total revenues and expenses by type:
Revenues:
Program revenues:
Charges for services
Operating grants & contributions
Capital contributions
General revenues:
Property taxes
Other taxes
Investment earnings
Miscellaneous
Total revenues
Expenses:
General government
Public safety
Public environment
Parks and recreation
Cultural
Administration
Interest and other fees
Water and sewer
EMS
Total expenses
Increase in net position
before transfers
Transfers
Change in net position
Net position - beginning of year
Net position - end of year
City of schertz's Changes in Net Position
Government -Wide
Governmental Business -Type
Activities Activities Total
2024 2023 2024 2023 2024 2023
$ 7,782,686
$ 6,267,868
$ 42,793,475
$ 41,093,604
$ 50,576,161
$ 47,361,472
3,579,794
2,425,937
-
-
3,579,794
2,425,937
3,293,373
18,456,911
8,431,343
14,180,619
11,724,716
32,637,530
27,147,745
25,118,429
-
27,147,745
25,118,429
23,393,401
23,388,656
-
-
23,393,401
23,388,656
5,569,055
4,678,690
4,535,559
1,927,277
10,104,614
6,605,967
1,119,844
820,465
974,786
479,479
2094,630
1� 299,944
71,885,898
81,156,956
56 735.163
57,680,979
12%621,061
138,837,935
8,678,145
8,244,956
-
-
8,678,145
8,244,956
22,719,864
22,195,399
22,719,864
22,195,399
8,802,846
6,188,351
8,802,846
6,188,351
5,539,108
4,253,278
5,539,108
4,253,278
1,520,759
1,380,793
1,520,759
1,380, 793
6,343,146
5,363,700
6,343,146
5,363,700
2,508,098
2,555,917
2,508,098
2,555,917
-
-
32,088,184
30,088,159
32,088,184
30,088,159
11, 718, 474
10,176, 945
11, 718, 474
10�, 945
56,111,966
50,182,394
43,806,658
40r265,104
99,918,624
90,447,498
15,773,932
30,974,562
12,928.505
17,415,875
28,702,437
48,390,437
-
591
I591)
15,773,932
30,975,153
12,928,505
17,415,284
28,702,437
48,390,437
184,522,196
153,547,043
160,613,147
143197,863
345,135.343
296,744,906
S 200,296,128
1184, 522,196
L173, 541.652
c 160.6�13 147
s 373 837,780
345�,135, 333
6
TOTAL REVENUES - GOVERNMENT -WIDE
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
1 6 j
Charges for Operating Capital Grants Property
Services Grants and and Taxes
Contributions Contributions
■ 2024 ■ 2023
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
General
Government
Other Taxes Unrestricted Miscellaneous
Investment
Earnings
TOTAL EXPENSES - GOVERNMENT -WIDE
I k h = 1 0
Public Safety Public Parks and Cultural Administration Interest and
Environment Recreation Other Fees
■ 2024 r 2023
7
GENERAL REVENUE BY SOURCE — GOVERNMENTAL ACTIVITIES
Occupancy Tax, Investment Earnings
2% 10%
Franchise Tax_ Miscellaneous
Sales Tax
35%
$60,000,000
$50,000,000
$40,000,000
$30,000,000
$20,000,000
$10,000,000
TOTAL REVENUES AND EXPENSES — BUSINESS -TYPE ACTIVITIES
2024 2023
■ Revenues ■ Expenses
8
operty Tax
47%
BUSINESS -TYPE REVENUES AND EXPENSES
$35,000,000
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
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 $112,876,964. Of this total amount, $11,072,251 constitutes unassigned fund balance, which
is available for spending at the government's discretion. The remainder of fund balance is non -spendable,
restricted, committed, or assigned to indicate that it is not available for new spending because it has already been
committed to pay debt service, for capital improvement projects, and other assigned purposes.
The general fund is the chief operating fund of the City of Schertz. At the end of the current fiscal year,
unassigned fund balance of the general fund was $11,338,745, while total fund balance was $17,947,703,
a decrease of $1,289,913 from the prior year. Overall, the decrease was caused by budgeted increases in public
safety expenditures that were partially offset by 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 25.61% of total general fund
expenditures, not including capital outlay.
The debt service fund has a total fund balance of $2,029,913, all of which is restricted for the payment of
debt service. The net increase in fund balance during the current year in the debt service fund was $916,055. This
increase 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.
9
The capital projects fund has a total fund balance of $41,543,633, an increase of $18,790,451. This was caused by
the issuance of the City's Series 2024 Certificates of Obligation.
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 $40,323,196, which is an increase of $7,327,362 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 $814,392, which consists of interest earned on the
$7,816,119 received from the Coronavirus Local Fiscal Recovery Fund grant program. Amounts not spent as of year-
end are presented as unearned revenue until spent in accordance with the terms of the grant agreement in future
years.
Proprietary funds. The City's proprietary funds provide the same type of information found in the government -
wide financial statements, but in more detail. Unrestricted net position of the water and sewer fund at the end of the
year amounted to $41,286,917 and those for the Schertz EMS fund amounted to a deficit of $253,112, which are
132% and 2% of fund operating costs, respectively.
The water and sewer fund reported an increase in net position of $7.6 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 $1,877,201. Expenses increased by approximately $2.1 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 $1,282,031 less than the $47,322,463 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 $734,613 less than budgeted, primarily due to property tax revenue
increasing less than expected. Overall, ending fund balance in the general fund was $2,101,414 higher than
budgeted.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capita/ assets. The City's investment in capital assets for its governmental and business -type activities as of
September 30, 2024, amounts to $338,890,205 (net of accumulated depreciation), including several projects in
progress from voter approved bonds.
Governmental
Business -Type
Activities
Activities
Total
2024
2023
2024
2023
2024
2023
Land
$ 15,450,585
$ 15,214,261
$ 2,415,103
$ 2,415,102
$ 17,865,688
$ 17,629,363
Water rights
-
-
70,245
70,245
70,245
70,245
Buildings and improvements
67,671,372
53,420,797
3,725,152
3,725,152
71,396,524
57,145,949
Machinery, equipment, and
vehicles
19,506,533
16,277,025
7,895,394
7,339,679
27,401,927
23,616,704
Infrastructure
175,820,607
175,473,306
143,743,449
137,700,969
319,564,056
313,174,275
Construction in progress
14,956,054
22,189,761
35,493,424
29,149,047
50,449,478
51,338,808
Accumulated depreciation
(98,720,55D
(88,306,247}
(49,137,161)
_(44,438,286)
(147,857,713)
132 744 533
TOTALS
5194,684599
1194,268,903
144�
$135,961,9�08
�338,890,205
S332230811
Significant capital asset activity for the year included improvements to streets and infrastructure of $6.2 million
and construction projects of $7.2 million.
Additional information on the City's capital assets can be found in note II.F. to the basic financial statements.
10
LONG TERM DEBT
At the end of the current fiscal year, the City of Schertz had total long-term debt outstanding of $122,484,521. 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.
Governmental
Business -Type
Activities
Activities
Total
2024
2023
2024
2023
2024
2023
General obligation bonds
$46,395,000
$50,790,000
$ 2,750,000
$ 3,525,000 $
49,145,000 $
54,315,000
Certificates of obligation
42,275,000
24,565,000
21,150,000
22,005,000
63,425,000
46,570,000
Financing arrangements
54,614
81,921
163,843
245,764
218,457
327,685
Premium on bonds
5,763,094
5,133,058
1,954,620
2,086,300
7,717,714
7,219,358
Compensated absences
1,405,718
1,259.918
572.632
498,709
1,978,350
1,758,627
Totals
195.893.426
5 81.829.897
6 26, 591,095
1, 28.360.773
122, 484, 521 5
110.190 670
Total debt increased compared to the prior year due to the issuance of the City's Series 2024 Certificates of Obligation.
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 decreased to $15.0
million from $15.5 million. There was a decrease in fund balance budgeted of $2.5 million in the original adopted
budget but due to the above expected performance of taxes collected and interlocal agreement updates combined
with savings in streets made up $2 million. The City of Schertz has appropriated $2.5 million of the fund balance for
spending in the 2025 fiscal year budget in accordance to the City's fund balance policy in an effort to reduce the
fund balance level. The approved tax rate decreased to $0.4872 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.
During the Fiscal year of 2023-24, the City and the Schertz Economic Development Corporation (SEDC) partnered
for a study to determine the feasibility of extending a sewer line through this region known as the Town Creek
Sewershed which is the area north of IH 35, along the City's border with Garden Ridge and New Braunfels. The
plan was completed and the SEDC partnered with two companies to construct this sewer line.
Boomerang and Lovett, both Houston companies, are planning two projects to construct over 800,000 square feet
of warehouse and cold storage in the area of FM 2252. These projects will extend the sewer from their projects to
a manhole and existing sewer at Abby Road. This project to extend nearly 6,600 linear feet of 24-inch sewer line.
In 2024-25 staff is planning for a second project to complete the second leg of over 9,000 linear feet of sewer for
this watershed, finally providing service to the entire region. There are a lot of exciting things happening and on
the horizon in Schertz.
Other development along IH 35 includes construction starting on buildings 2, 4, 5, and 6 at 22867 IH 35 that will
be a combined 773,343 sq ft of industrial spec space and Royal Manufacturing starting Phase III for an additional
196,560 sq ft of industrial space.
For nearly two years, Schertz has worked on finalizing an agreement with Merit Real Estate for the development
of the Schertz Station Shopping Center, Schertz' first major retail development in 20 years. The SEDC partnered
with developers of that area to assist with public infrastructure for the extension of Ripps Kreusler Rd, and some
signalization improvements on Cibolo Valley Drive and IH 35 access Rd. The development at that location will
make way for a 250,000 square feet shopping center anchored by a Home Depot and several restaurants and
service -related businesses. Some of the businesses coming to the center, CAVA, Chipolte, Panera, Jersey Mikes
and Dave's Hot Chicken have been actively recruited by the city for many years. In addition, Portillo's Restaurant,
the Chicago icon that was founded in 1963 will make its first appearance into the San Antonio market with a store
in the Schertz Station. This development promises cranes on the horizon and ribbon cuttings for many years to
come.
11
For residential development, City also has a 300 unit residential multifamily apartment complex totaling 383,481sq
ft. In addition to having the highest annual revenue on new residential building permits since 2015.
Overall, the City of Schertz continues to be an extremely attractive option as a center for logistics and distribution
being along the west side IH 35 where the current industrial development is centered with residential and
residential businesses located along the east side. Continued development reinforces the City's projection of
continued growth in both the residential and commercial sectors of 3% and 7%, respectively.
Requests for Information
This financial report is designed to provide a general overview of the City's finances for all those with an interest in
the government's finances. Questions concerning any of the information provided in this report or requests for
additional financial information should be addressed to the Office of the Finance Director, City of Schertz, 1400
Schertz Parkway, Schertz, Texas 78154.
12
THIS PAGE LEFT BLANK INTENTIONALLY
BASIC
FINANCIAL STATEMENTS
CITY OF SCHERTZ, TEXAS
STATEMENT OF NET POSITION
SEPTEMBER 30, 2024
ASSETS
Cash and cash equivalents
Investments
Internal balances
Receivables, net of allowances:
Taxes
Accounts and other
Accrued interest
Inventories
Restricted assets:
Cash and cash equivalents
Service concession arrangement receivable:
Due within one year
Due in more than one year
Investment in joint venture
Capital assets:
Land
Water rights
Buildings and improvements
Equipment and vehicles
Infrastructure
Construction in progress
Accumulated depreciation
Total Assets
DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on debt refunding
OPEB related
Pension related
Total Deferred Outflows of Resources
Primary Government
Governmental
Activities
Business -Type
Activities
Total
$ 112,611,161
$ 24,837,104
$ 137,448,265
4,829,710
1,222,270
6,051,980
732,091
(732,091)
-
4,630,649
-
4,630,649
1,242,882
8,590,258
9,833,140
-
6,324
6,324
285,571
231,031
516,602
110,791
10,275,888
10, 386, 679
90,909
-
90,909
619,427
-
619,427
-
22,208,706
22,208,706
15,450,585
2,415,103
17,865,688
-
70,245
70,245
67,671,372
3,725,152
71,396,524
19,506,533
7,895,394
27,401,927
175,820,607
143,743,449
319,564,056
14,956,054
35,493,424
50,449,478
The accompanying notes are an integral part
of these financial statements. 13
(98,720,552) (49.,137,161} 147 857 713
_ 319,837,790 210,845,096 530 682.886
392,195 - 392,195
472,800 164,140 636,940
6,291,741 2,184,268 8,476,009
7,156,736 2,348,408 9,505,144
CITY OF SCHERTZ, TEXAS
STATEMENT OF NET POSITION
LIABILITIES
Accounts payable
Accrued liabilities
Retainage payable
Due to other governments
Unearned revenue
Accrued interest payable
Customer deposits
Noncurrent liabilities:
Due within one year:
Compensated absences
Total OPEB liability
Service concession arrangement
Long-term debt
Due in more than one year:
Compensated absences
Total OPEB liability
Net pension liability
Service concession arrangement
Long-term debt
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Deferred service concession arrangement
OPEB related
Pension related
Total Deferred Inflows of Resources
NET POSITION
Net investment in capital assets
Restricted for:
Police and municipal court
PEG capital fees
Tourism development
Economic development
Parks and tree mitigation
Debt service
Scholarships and other purposes
Construction
Unrestricted
Total Net Position
SEPTEMBER 30, 2024
Primary Government
Governmental
Activities
Business -Type
Activities
Total
$ 2,539,257
$ 4,153,880 $
6,693,137
777,467
289,202
1,066,669
6,893
718,963
725,856
50,043
-
50,043
6,544,945
302,260
6,847,205
438,634
154,964
593,598
33,027
600,837
633,864
281,144
114,526
395,670
86,507
29,892
116,399
5 5, 241
-
55,241
7,042,307
1,781,921
8,824,228
1,124,574
458,106
1,582,680
2,214,732
769,014
2,983,746
16,326,037
5,667,815
21,993,852
376,397
-
376,397
87,445,401
24, 236, 542
111,681,943
125,342,606
39,2771922
164,620,528
278,698
-
278,698
972,045
337,461
1,309,506
105,049
36,469
141518
11355,792
373,930
1,729,722
142,891,901 125,867, 091 268,758,992
920,715
- 920,715
136,899
- 136,899
3,439,858
- 3,439,858
41,137,588
- 41,137,588
1,777,495
- 1,777,495
1,786,712
- 1,786,712
1,013,530
- 1,013,530
-
6,640,756 6,640,756
7,191,430
41,033,805 48.225,235
14
$ 200, 296,128 $ 173, 541, 652 $ 373, 837, 780
CITY OF SCHERTZ, TEXAS
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2024
Program Revenues
Operating
Capital
Charges for
Grants and
Grants and
Functions/Prog rams
Expenses
Services
Contributions
Contributions
Primary government:
Governmental activities:
General government
$ 8,678,145
$ 418,302
$ 1,563,245
$ -
Public safety
22,719,864
4,068,931
2,011,463
-
Public environment
8,802,846
2,038,419
-
3,293,373
Parks and recreation
5,539,108
932,437
-
-
Cultural
1,520,759
324,597
5,086
-
Administration
6,343,146
-
-
-
Interest
_ 2,508,098
-
-
-
Total Governmental Activities
56,111,966
7,782,686
3,579,794
3,293,373
Business -type activities:
Water and sewer
32,088,184
32,562,394
EMS
_ 11,718,474
10,231,081
Total Business -Type Activities
43,806,658
_42,793,475
Total Primary Government
$ 99,918,624
$ 50,576,161
General revenues:
Taxes:
Ad valorem
Sales
Franchise fees
Hotel/motel
Mixed drink
Investment earnings
Miscellaneous
Total General Revenues
Change in Net Position
Net Position - Beginning
Net Position - Ending
The accompanying notes are an integral part
of these financial statements. 15
$ 3,579,794
8,431,343
8,431,343
$ 11, 724, 716
Net Expense) Revenue and Changes in Net Position
Primary Government
Governmental
Activities
$ (6,696,598)
(16,639,470)
(3,471,054)
(4,606,671)
(1,191,076)
(6,343,146)
(2,508098)
(41,456,113)
(41,456, 113)
27,147,745
20,095,955
2,354,657
849,265
93,524
5,569,055
1,119, 844
57,230,045
15,773,932
184, 522;196
$ 200,296,128
Business -Type
Activities
8,905,553
(1,487, 393;
7,418,160
7.418.160
4,535,559
974,786
5,510,345
12,928, 505
160, 613,147
$ 173,_541,652
Total
$ (6,696,598)
(16,639,470)
(3,471,054)
(4,606,671)
(1,191,076)
(6,343,146)
(2,508,098)
(41,456,113j
8,905,553
(1,487,393)
7,418,160
(34,037,953)
27,147,745
20,095,955
2,354,657
849,265
93,524
10,104,614
2,094,630
62, 740, 390
28,702,437
345.135.343
$ 373,837,780
16
CITY OF SCHERTZ, TEXAS
BALANCE SHEET
GOVERNMENTALFUNDS
SEPTEMBER 30, 2024
ASSETS
Cash and cash equivalents
Investments
Receivables (net of allowances)
Taxes
Accounts and other
Due from other funds
Inventory
Restricted assets:
Cash and cash equivalents
Total Assets
LIABILITIES
Accounts payable
Accrued salaries and benefits
Retainage payable
Customer deposits
Due to other governments
Due to other funds
Unearned revenues
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total Deferred Inflows of Resources
FUND BALANCES
Nonspendable for:
Inventory
Restricted for:
Police and public safety/municipal court
Municipal court
PEG capital fees
Capital improvement
Debt service
Tourism development
Parks and tree mitigation
Historical Committee and library
Economic development
Animal control
Scholarships
Committed for:
Capital Projects
Civic Center/SIED
Assigned for:
Property replacement
Subsequent year's budget
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of Resources,
and Fund Balances
The accompanying notes are an integral part
of these financial statements. 17
General Capital Projects Debt Service
Fund Fund Fund
$ 14,004,790 $ 41,622,628 $ 2,029,913
2,499,161 - -
3,293,402 - 195,433
1,134,923 - -
1,376,444 - -
285,571 - -
110,791 - -
22,705,082 41,622,628 2,225,346
2,446,518 78,995 -
777,467 - -
33,027 - -
50,043 - -
31,498 - -
3,338,553 78,995 -
1,418,826 - 195,433
1,418,826 - 195,433
285,571 -
409,637 - -
715,579 - -
136,899 - -
- 37,654,911 -
- 2,029,913
47,461 - -
149,097 - -
- 3,888,722 -
1,260,939 - -
1,007,626 - 2,596,149 - -
11,338,745 - -
17,947,703 41,543,633 2,029;913
$ 22,705,082 $ 41,622,628 2,225,346
Economic
Development
Corporation
American
Rescue Plan Act
Fund
Nonmajor
Governmental
Funds
Total
Governmental
Funds
$ 36,851,691
$ 7,334,732
$ 10,767,407
$ 112,611,161
2,330,549
-
-
41829,710
1,141,814
-
-
4,630,649
7,949
-
100,010
1,242,882
-
-
-
1,376,444
-
-
-
285,571
-
-
-
110,791
40,332,003
7,334,732
_ 10,867,417
125,087,208
8,807
-
4,937
2,539,257
-
-
-
777,467
-
6,893
-
6,893
-
-
-
33,027
-
-
-
50,043
-
-
644,353
644,353
-
6,513,447
-
6,544r945
8,807
6,520,340
649,290
M595.985
1,614,25
1,614,259
285,571
- - 511,078
920,715
- - -
715,579
- - -
136,899
- - 4,654,797
42,309,708
- - -
2,029,913
- - 3,439,858
3,439,858
- - 1,777,495
1,777,495
- - 101,393
101,393
40,323,196 814,392 -
41,137,588
- - -
47,461
- - -
149,097
- - -
3,888,722
- - -
1,260,939
- - -
1,007,626
- - -
2,596,149
- - _ (266,494)
11,072,251
40, 323,196 814,392 10, 218,127
112.876.964
40,332,003 $ 7,3341732 $ 10,867,417 $ 125,087,208
18
THIS PAGE LEFT BLANK INTENTIONALLY
CITY OF SCHERTZ, TEXAS
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
SEPTEMBER 30, 2024
Total Fund Balances - Governmental Funds $
112,876,964
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.
194,684,599
Bonds payable and accrued compensated absences will not be liquidated with
current financial resources and, therefore, have not been included in the fund
financial statements.
(90,130,332)
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.
(438,634)
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
(5,763,094)
Deferred loss
392,195
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.
1,614,259
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
(16,326,037)
Deferred outflows related to pensions
6,291,741
Deferred inflows related to pensions
(105,049)
Total OPEB liability
(2,301,239)
Deferred outflows related to OPEB
472,800
Deferred inflows related to OPEB
(972,045)
Net Position of Governmental Activities $
2004296,128
The accompanying notes are an integral part
of these financial statements. 19
CITY OF SCHERTZ, TEXAS
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2024
REVENUES
Taxes
Permits and fees
Service fees
Fines and fees
Intergovernmental
Investment earnings
Miscellaneous
Total Revenues
EXPENDITURES
Current:
General government
Public safety
Public environment
Parks and recreation
Cultural
Administration
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Bond issue costs
Total Expenditures
Excess (Deficiency) of Revenues
Over Expenditures
OTHER FINANCING SOURCES (USES)
Issuance of bonds
Premium on issuance of bonds
Transfers in
Transfers out
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCE
FUND BALANCES - BEGINNING
FUND BALANCES - ENDING
The accompanying notes are an integral part
of these financial statements. 20
General
Capital Projects
Debt Service
Fund
Fund
Fund
$ 34,041,974
$ -
$ 8,917,461
2,627,370
-
-
2,339,769
-
-
366,823
-
-
2,940,640
-
-
1,251,166
1,379,778
195,912
897,538
-
221,136
441465,280
1,379,778
_ 9,334,509
7,106,636
-
-
23,365,331
-
-
2,518,012
-
-
4,161,603
-
-
1,429,406
-
-
5, 688,426
-
-
1,771,018
2,497,812
-
-
-
5,850,000
-
-
2,667,861
-
_ 163,613
5,000
46,040,432
2,661,425
8,522,861
_(1,575,152)
(1,281,647}
811,648
-
19,165,000
-
-
998,613
-
285, 239
12,892
104,407
-
(104,407)
-
285,239
20,072,098
104,407
(1,289,913)
18,790,451
916,055
19.,237,616
22,753,182
1,1131858
$ 17,947,703_
41,543,633
2,029,913
Economic
Development
Corporation
$ 6,698,059
1,868,124
1,101
8,567,284
384,286
557,505
7,625,493
(298,131}
(298,131}
7,327,362
32,995,834
$ 40,323,196
American
Nonmajor
Total
Rescue Plan Act
Governmental
Governmental
Fund
Funds
Funds
$ -
$ 849,265
$ 50,506,759
-
1,001,518
3,628,888
-
1,502,262
3,842,031
-
224,151
590,974
694,541
378,480
4,013,661
414,711
459,364
5,569,055
- _
69
1,119, 844
1,109,252
4,415,109
69,271,212
-
56,535
7,547,457
-
43,544
23,408,875
-
81,429
2,599,441
-
-
4,161,603
-
16,880
1,446,286
-
80,265
6,326,196
694,541
111,961
5,075,332
-
-
5,850,000
-
-
2,667,861
-
-
168,613
694,541
390,614
59, 251, 664
414,711
4,024,495
10, 019, 548
19,165,000
998,613
- - 402,538
(402,538)
- - _ 20,163,613
414,711 4,024,495 30,183,161
399,681 6.193,632 82,693,803
814,392 $- 10,218,127 $ 112,876,964
21
THIS PAGE LEFT BLANK INTENTIONALLY
CITY OF SCHERTZ, TEXAS
RECONCILIATION OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2024
Net Changes in Fund Balances - Governmental Funds
Amounts reported for governmental activities in the statement of activities are
different because:
Governmental funds report capital outlays as expenditures. However, in the
governmental activities statement of activities, that cost of those assets is allocated
over their estimated useful lives and reported as depreciation expense.
Capital outlay
Depreciation expense
Revenues in the Statement of Activities that do not provide current financial
resources are not reported as revenues in the funds.
Property taxes
Court fines
The issuance of long-term debt (e.g. bonds) provides current financial resources to
governmental funds, while the repayment of the principal of long-term debt
consumes the current financial resources of governmental funds. Neither
transaction, however, has any effect on net position. Also, governmental funds
report the effect of premiums, discounts, and similar items when debt is first
issued, whereas the amounts are deferred and amortized in the Statement of
Activities.
Repayment of principal of long-term debt
Amortization of loss on refunding
Current year changes in certain long-term liabilities do not require the use of
current financial resources and, therefore, are not reported as expenditures in
governmental funds.
Issuance of bonds
Premium on issuance of bonds
Compensated Absences
Net pension liability
Total OPEB liability
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.
Change in Net Position of Governmental Activities
The accompanying notes are an integral part
of these financial statements. 22
$ 30,183,161
10,830,001
(10,414,305)
25,404
(704,091)
6,245,884
(57,272)
(19,165,000)
(998,613)
(145,800)
66,799
(109,307)
17,071
5 15,773.932
CITY OF SCHERTZ, TEXAS
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
SEPTEMBER 30, 2024
Business -Type
Activities
Enterprise Funds
Total
Water and
Schertz
Enterprise
Sewer System
EMS
Funds
ASSETS
Current assets:
Cash and cash equivalents
$ 24,836,633
$ 471
$ 24,837,104
Investments
1,222,270
-
1,222,270
Accounts receivable, net of allowance:
Customer accounts
3,933,498
4,656,760
8,590,258
Accrued interest
6,324
-
6,324
Inventory
109,750
121.281
231031
Total Current Assets
30,108,475
_ 4,778,512
34,886,987
Noncurrent assets:
Restricted assets:
Cash and cash equivalents
10,275,888
-
10,275,888
Investment in joint ventures
22,208,706
-
22,208,706
Capital assets:
Land
2,415,103
-
2,415,103
Water rights
70,245
-
70,245
Buildings and improvements
3,630,652
94,500
3,725,152
Machinery, equipment, and vehicles
3,794,513
4,100,881
7,895,394
Infrastructure
143,743,449
-
143,743,449
Construction in progress
35,493,424
-
35,493,424
Less: accumulated depreciation
(46,665,904]
_ (2,471,257)
49 137 161
Total Noncurrent Assets
174,966,076
_ 1,724.,124
176,690,200
Total Assets
205,074,551
6,502,636
211,577,187
DEFERRED OUTFLOWS OF RESOURCES
Related to OPEB
46,433
117,707
164,140
Related to pension
617,900
1,566,368
2,184,268
Total Deferred Outflows of Resources
664,333
1,684,075
2 348 408
The accompanying notes are an integral part
of these financial statements. 23
CITY OF SCHERTZ, TEXAS
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
SEPTEMBER 30, 2024
Business -Type
Activities
Enterprise Funds
_
Total
Water and
Schertz
Enterprise
Sewer System
EMS
Fund
LIABILITIES
Current liabilities:
Accounts payable
$ 3,721,077
$ 432,803
$ 4,153,880
Accrued liabilities
79,108
210,094
289,202
Retainage payable
718,963
-
718,963
Customer deposits
600,837
-
600,837
Accrued interest
154,964
-
154,964
Due to other funds
-
732,091
732,091
Unearned revenue
300,000
2,260
302,260
Current portion of long-term liabilities:
Compensated absences
27,940
86,586
114,526
Total OPEB liability
8,495
21,397
29,892
Long-term debt
1,700,000
81,921
1,781,921
Total Current Liabilities
7,311,384
1,567,152
8,878, 536
Noncurrent liabilities:
Compensated absences
111,761
346,345
458,106
Total OPEB liability
217,505
551,509
769,014
Net pension liability
1,603,351
4,064,464
5,667,815
Long-term debt
24,154,620
81,922
24,236,542
Total Noncurrent Liabilities
26,087,237
5,044,240
31 ,131 477
Total Liabilities
33,398,621
6,611,392
40,010,013
DEFERRED INFLOWS OF RESOURCES
Related to OPEB
95,464
241,997
337,461
Related to pension
10,316
26,153
36,469
Total Deferred Inflows of Resources
105,780
268,150
373,930
Net investment in capital assets
124,306,810
1,560,281
125,867,091
Restricted for construction
6,640,756
-
6,640,756
Unrestricted
41,286,917
(253,112)
41,033,805
Total Net Position
$ 172,234,483
$ 1,307,169
$ 173,541,652
24
THIS PAGE LEFT BLANK INTENTIONALLY
CITY OF SCHERTZ, TEXAS
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2024
OPERATING REVENUES
Fees charged to users
Other charges
Miscellaneous
Total Operating Revenues
OPERATING EXPENSES
Personnel services
General and administrative
Contractual services
Supplies and maintenance
Depreciation
Total Operating Costs
Operating Income (Loss)
NON -OPERATING REVENUES (EXPENSES)
Investment revenue
Rentrevenue
Interest expense
Total Non -Operating Revenues (Expenses)
Income before contributions and transfers
Capital contributions - impact fees
Capital contributions - dedicated assets
CHANGE IN NET POSITION
NET POSITION - BEGINNING
NET POSITION - END OF YEAR
Business -Type
Activities
Enterprise Funds
Total
Water and Schertz Enterprise
Sewer System EMS Funds
$ 32,041,277
$ 10,231,081
$ 42,272,358
46,362
-
46,362
724,281
250,505
974,786
32,811,920
10,4814586
43,293,506
3,425,187
8,901,006
12,326,193
3,422,149
898,961
4,321,110
19,137,379
761,544
19,898,923
678,498
683,702
1,362,200
4,593,817
473,261
5 067 078
31,257,030
11,718,474
42,975,504
1,554,890
(1,236,888)
318,002
4,511,317
24,242
4,535,559
474,755
-
474,755
(831,154)
-
(831,154)
4,154,918
24,242
4,179 160
5,709,808
(1,212,646)
4,497,162
2,388,863
-
2,388,863
6,042,480
-
6,042,480
14,141,151
(1,212,646)
12,928,505
158,093,332
2,519,815
160,613,147
1724234,483,
$ 1,307,169
$ 173,541,652
The accompanying notes are an integral part
of these financial statements. 25
CITY OF SCHERTZ, TEXAS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2024
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers and users
Cash paid to employees for services
Cash paid to suppliers for goods and services
Net Cash Provided By Operating Activities
CASH FLOWS FROM NON -CAPITAL FINANCING
ACTIVITIES
Transfers from other funds
Net Cash Used in Non -Capital Financing Activities
CASH FLOWS FROM CAPITAL & RELATED FINANCING
ACTIVITIES
Capital contributions - impact fees
Interest paid on long-term debt
Principal paid on long-term debt
Net Cash Used in Capital and Related
Financing Activities
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investments
Payments from rentals
Interest and investment earnings
Net Cash Provided By (Used in) Investing Activities
Net (Decrease) Increase in Cash and Cash Equivalents
Cash and cash equivalents at beginning of year:
Cash and cash equivalents
Restricted cash and cash equivalents
Cash and cash equivalents at end of year
Cash and cash equivalents
Restricted cash and cash equivalents
The accompanying notes are an integral part
of these financial statements.
26
Business -Type
Activities
Enterprise Funds
Water and Schertz Total
Sewer System EMS Enterprise
$ 32,184,917 $ 10,019,047 $ 42,203,964
(3,408,428) (8,635,878) (12,044,306)
(26,955,306) (2,094,320) [29,049,626]
1,,821,183 (711,151}. 1 110 032
91,499 732,091 823,590
91,499 732,091 823,590
2,388,863 - 2,388,863
(956,469) - (956,469)
(1,630,000} (81,921) (1,711,921)
(6,800,2L8) (747,777] 7 547 825
(38,473) - (38,473)
474,755 - 474,755
4,511,317 24,242 4,535,559
4,947,599 24,242 4,971,841
60,233 (702,595) (642,362)
21,699,922 703,066 22,402,988
13,352,366 - 13,352,366
35,052,288 703,066 35,755,354
24,836,633 471 24,837,104
10,275,888 - 10,275,888
$ 35,112,521 $ 471 $ 35,112,992
CITY OF SCHERTZ, TEXAS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2024
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED BY OPERATING ACTIVITIES
Operating income (loss)
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities:
Depreciation
Change in investment in joint venture
Decrease (increase) in accounts receivable
Decrease (increase) in inventory
Decrease (increase) in inventory
Decrease (increase) in accounts receivable
Increase (decrease) in accounts payable
Increase (decrease) in accrued liabilities
Increase (decrease) in customer deposits
Increase (decrease)in unearned revenue
Increase (decrease) in compensated absences
Increase (decrease) in net pension liability
Increase (decrease) in deferred OPEB inflows
Increase (decrease) in deferred pension inflows
Increase (decrease) in total OPEB liability
Net cash provided by operating activities
Business -Type
Activities
Enterprise Funds
Water and Schertz Total
Sewer System EMS Enterprise
1,554,890 $ (1,236,888) $
4,593,817
(2,615,430)
(409,065)
16,886
219,527
7,540
(1,118,736)
28,596
(24,012)
(193,926)
(2,195)
(240,739)
(1,765)
3,717
2,078
$ 1,821,183
473,261
(463,364)
(22,280)
416,896
10,114
272,167
825
76,118
(302,856)
11,733
10,526
42,597
$ (711,151)
318,002
5,067,078
(2,615,430)
(872,429)
(5,394)
636,423
17,654
(846,569)
28,596
(24,012)
(193,101)
73,923
(543,595)
9,968
14,243
44,675
1 110,032
SCHEDULE OF NON -CASH CAPITAL ACTIVITIES
Developer contributions of capital assets 6,042,480 - 6,042,480
Total non -cash capital activities 6,042,480- 6,042,480
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THIS PAGE LEFT BLANK INTENTIONALLY
CITY OF SCHERTZ, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2024
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 Co orati n - 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.
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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.
The statement of activities demonstrates the degree to which the direct expenses of a given function or
segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific
function or segment. Program revenues include 1) charges of customers or applicants who purchase, use, or
directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants
and contributions that are restricted to meeting the operational or capital requirements of a particular
function or segment. Taxes and other items not properly included among program revenues are reported
instead as general revenues.
Separate financial statements are provided for governmental funds and proprietary funds. Major individual
governmental funds and major individual enterprise funds are reported as separate columns in the fund
financial statements.
C. Measurement Focus. Basis of Accounting, and Financial Statement Presentation
The government -wide financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded
when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash
flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar
items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been
met.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collectible within the
current period or soon thereafter to pay liabilities of the current period. For this purpose, the City considers
revenues to be available if they are collected within 60 days of the end of the current fiscal period.
Nonexchange revenues that are measurable but not available are recorded as unavailable revenue (a
deferred inflow of resources). These revenues are generally property taxes and warrants outstanding.
Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt
service expenditures, as well as expenditures related to compensated absences and claims and judgments,
are recorded only when payment is due.
Exchange revenues (payments for services) received in advance of the service being provided are recorded
as unearned revenue.
The City reports the following major governmental funds:
The General Fund is the City's primary operating fund which accounts for all financial resources of the
general government, except those required to be accounted for in another fund.
The Capital Proiects Fund accounts for the acquisition and construction of major capital facilities
financed from bond proceeds, grants, and transfers from other funds.
The Debt Service Fund accounts for the resources accumulated and payments made for principal and
interest on long-term general obligation debt of governmental funds.
The Economic Development Corporation collects sales taxes to support business development and
expansion within the City.
The American Rescue Plan Act Fund records revenue and expenditures related to the City's COVID-
19 funding from the American Rescue Plan Act.
29
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.
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.
30
F. Receivables and Pavables
Activities between the funds that are representative of inter -fund loans outstanding at the end of the fiscal
year are referred to as due to/from other funds. Any residual balances outstanding between the
governmental activities and business -type activities are reported in the government -wide financial
statements as "internal balances".
Accounts 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.
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. Inventoried
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
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J. Deferred Inflows/Outflows of Resources
In addition to assets, the statement of financial position and/or balance sheet will sometimes report a
separate section for deferred outflows of resources. This separate financial statement element, deferred
outflows of resources, represents a consumption of net assets that applies to a future period(s) and so will
not be recognized as an outflow of resources (expense/expenditure) until then. The City has the following
items that qualify for reporting in this category.
• Deferred charges on refunding - A deferred charge on refunding results from the difference in the
carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over
the shorter of the life of the refunded or refunding debt.
• Pension and OPEB contributions after measurement date - These contributions are deferred and
recognized in the following fiscal year.
• Difference in expected and actual pension and OPEB experience - This difference is deferred and
recognized over the estimated average remaining lives of all members determined as of the
measurement date.
• Changes in actuarial assumptions and other inputs - This difference is deferred and recognized over the
estimated average remaining lives of all members determined as of the measurement date.
In addition to liabilities, the statement of financial position and/or balance sheet will sometimes report a
separate section for deferred inflows of resources. This separate financial statement element, deferred
inflows of resources, represents an acquisition of net assets that applies to a future period(s) and so will
not be recognized as an inflow of resources (revenue) until that time. The City has the following types of
items that qualify for reporting in this category.
• Unavailable revenue is reported only in the governmental funds balance sheet. These amounts are
deferred and recognized as an inflow of resources in the period that the amounts become available.
• Difference in projected and actual earnings on pension assets - This difference is deferred and amortized
over a closed five-year period.
• Difference in expected and actual pension and OPEB experience - This difference is deferred and
recognized over the estimated average remaining lives of all members determined as of the
measurement date.
• Changes in actuarial assumptions and other inputs - This difference is deferred and recognized over the
estimated average remaining lives of all members determined as of the measurement date.
K. Compensated Absences
It is the City's policy to permit employees to accumulate earned but unused vacation and compensatory time
benefits. There is no liability for unpaid accumulated sick leave since the City does not have a policy to pay
any amounts when employees separate from service with the City. All vacation and compensatory time pay
is accrued when incurred in the government -wide and proprietary fund financial statements. A liability for
these amounts is reported in governmental funds only if they have matured, for example, as a result of
employee resignations and retirements. The general fund, water and sewer fund and the EMS fund are used
to liquidate compensated absences.
L. Pensions
The net pension liability, deferred inflows, and outflows of resources related to pensions, and pension
expense, information about the fiduciary net position of the Texas Municipal Retirement System (TMRS),
and additions to and deductions from TMRS's fiduciary net position have been determined on the same basis
as they are reported by TMRS. For this purpose, benefit payments (including refunds of employee
contributions) are recognized when due and payable in accordance with the benefit terms. Investments are
reported at fair value.
W
M. Other Post -Employment Benefits (OPES
Supplemental Death Benefits Fund. For purposes of measuring the total Texas Municipal Retirement
System Supplemental Death Benefit Fund (TMRS SDBF) OPEB liability, related deferred outflows and
inflows of resources, and expense, City specific information about its total TMRS SDBF liability and
additions to/deductions from the City's total TMRS SDBF liability have been determined on the same basis
as they are reported by TMRS. The TMRS SDBF expense and deferred (inflows)/outflows of resources
related to TMRS SDBF, primarily result from changes in the components of the total TMRS SDBF liability.
Most changes in the total TMRS SDBF liability will be included in TMRS SDBF expense in the period of the
change. For example, changes in the total TMRS SDBF liability resulting from current -period service cost,
interest on the TOL, and changes of benefit terms are required to be included in TMRS SDBF expense
immediately. Changes in the total TMRS SDBF liability that have not been included in TMRS SDBF expense
are required to be reported as deferred outflows of resources or deferred inflows of resources related to
TMRS SDBF.
Retiree Health Insurance. For purposes of measuring the total OPEB liability, OPEB related deferred
outflows and inflows of resources, and OPEB expense, benefit payments and refunds are recognized when
due and payable in accordance with the benefit terms. Contributions are not required but are measured as
payments by the City for benefits due and payable that are not reimbursed by plan assets. Information
regarding the City's total OPEB liability is obtained from a report prepared by a consulting actuary, Gabriel
Roeder Smith & Company.
N. Long -Term Obligations
In the government -wide financial statements, and proprietary fund types in the fund financial statements,
long-term debt and other long-term obligations are reported as liabilities in the applicable governmental
activities, business -type activities, or proprietary fund type statement of net position. Bond premiums,
discounts, and losses on defeasance are amortized over the life of the bonds using the straight-line method.
Bonds payable are reported net of the applicable bond premium or discount. Losses on defeasance are
reported as deferred outflows of resources. Bond issuance costs are expensed as incurred.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well
as bond issuance costs, during the current period. The face amount of debt issued is reported as other
financing sources. Premiums received on debt issuances are reported as other financing sources while
discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld
from the actual debt proceeds received, are reported as debt service expenditures.
O. Fund Balance
Fund balances in governmental funds are classified as follows:
Nonspendable - Represents amounts that cannot be spent because they are either not in spendable form
(such as inventory or prepaid items) or legally required to remain intact.
Restricted - Represents amounts that are constrained by external parties, constitutional provisions or
enabling legislation.
Committed - Represents amounts that can only be used for a specific purpose because of a formal action
by the government's highest level of decision -making authority: an ordinance adopted by City Council
prior to the end of the fiscal year. Once adopted, the limitation imposed by the ordinance remains in
place until a similar action is taken (the adoption of another ordinance) to remove or revise the
limitation.
Assigned - Represents amounts which the City intends to use for a specific purpose but do not meet the
criteria of restricted or committed. The City Council may make assignments through formal
documentation in the minutes. The City Council authorized (by way of policy) the City Manager to also
make assignments. The City Manager's assignments do not require formal action; however, the City
Manager has not assigned any funds at this time.
W
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.
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, 2024, the City has a deficit unassigned fund balance of $266,464 in the Grant Fund. This
deficit is due to timing differences between expenditures and reimbursements of grant funds.
S. Buclicietary 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, 2024, the City had the following cash, cash equivalents and investments:
Reported
Value
Investment type:
LOGIC
$ 39,529,875
Lone Star Investment Pool
29,060,228
Texas CLASS
72,231,881
Certificates of Deposit
4,529,802
U.S. Agency Securities
1,522,178
Subtotal
146,873,964
Plus: depository and petty cash
960,980
Total cash and investments
147,834,944
Fair Value
Weighted Average Measurements
Maturity {days}_ Usinn - Level 2
48 $ -
21 -
34 -
79 -
487 1,522,178
$ 1,522,178
LOGIC, Lone Star Investment Pool and Texas CLASS are recorded as cash equivalents in the financial
statements. All of the pools have redemption notice periods of one day and may redeem daily. The
investment pools' authorities may only impose restrictions on redemptions in the event of a general
suspension of trading on major securities markets, general banking moratorium or national state of
emergency that affects the pools' liquidity.
34
The County categorizes its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value
of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are
significant observable inputs other than quoted market prices for similar assets; Level 3 inputs are significant
unobservable inputs. All of the County's fair value investments were valued using either documented trade
history in exact security pricing, option -adjusted discounted cash flow, or present value of expected future
cash flow pricing models (Level 2 inputs).
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, 2024, 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, 2024, the City's investments in debt securities
were rated BBB+ by Standard & Poor's.
Custodial Credit Risk - Deposits. In the case of deposits, this is the risk that in the event of a bank failure,
the government's deposits may not be returned. As of September 30, 2024, 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, 2024, was $0.4990 per $100 of assessed
value.
However, the City may not adopt a tax rate that exceeds the tax rate calculated in accordance with the
Texas Property Tax Code without holding a public hearing. The Property Tax Code subjects an increase in
the effective tax rate to a referendum election, if petitioned by registered voters, when the effective tax
rate increase is more than 3.5% of the previous year's effective tax rate.
Property taxes are recorded as receivables and unearned revenues at the time the taxes are assessed. In
governmental funds, revenues are recognized as the related ad valorem taxes are collected. Additional
amounts estimated to be collectible in the time to be a resource for payment of obligations incurred during
the fiscal year and therefore susceptible to accrual in accordance with generally accepted accounting
principles have been recognized as revenue. In the government -wide financial statements, the entire levy
is recognized as revenue, net of estimated uncollectible amounts (if any), at the levy date.
35
C. Rpr,!@ivgbIes
Receivables as September 30, 2024 for the government's individual major funds and nonmajor funds in the
aggregate, including the applicable allowances for uncollectible accounts, are as follows:
Receivables:
Property taxes
Sales tax
Occupancy taxes
Franchise taxes
Customers
Court fines
Other
Gross receivables
Less: allowance for
uncollectible accounts
Net receivables
Governmental Activities Business -type Activities
General Economc Debt Nonmajor Water and Schertz
Fund Development Service Funds Sewer Fund EMS
$ 442,546 $ - $ 207,907 $ $ - $
2,283,629 1,141,814 -
- - 100,010
572,349 -
2,463,962
160 557 7,949 -
5,923,043 1,149,763 207,907 100,010
(1,494.718) - (12,474)
4,428,325 1.149,763 195 433 $ 100,010
D. Deferred Inflows and Outflows of Resourc
3,712,290 9,589,341
364,093 -
4,076,383 9,589,341
(142,885) (4,932,581)
5 3,933.498 5 4,656.760
Governmental funds report unavailable revenue in connection with receivables for revenue that is not
considered to be available to liquidate liabilities of the current period. At the end of the current fiscal year,
the various components of unavailable revenue and unavailable revenue reported in the governmental funds
were as follows:
General Fund
Delinquent property taxes receivable
Court fines
Total General Fund
Debt Service Fund
Delinquent property taxes receivable
Total Debt Service Fund
Total Governmental Funds
Unavailable
$ 415,993
1,002,833
1,418,826
195,433
195.433
$ 1,614,259
Additionally, the proprietary funds and governmental activities statements of net position report various
deferred outflows and inflows of resources, primarily due to pensions and OPEB, that are summarized by
column. The following table presents the disaggregated amounts.
Deferred outflows:
Charge on refunding
Related to pensions
Related to OPEB - SDBF
Related to OPEB - Retiree
Health Plan
Total deferred outflow
Deferred inflows:
Service concession arrangement
Related to pensions
Related to OPEB - SDBF
Related to OPEB - Retiree
Health plan
Total deferred inflow
Business -type Activities
Governmental Water/
Activities Sewer EMS Totals
$ 392,195 $ 5,965 $ - $ 398,160
6,291,741 617,900 1,566,368 8,476,009
150,518 14,782 37,473 202,773
322,282 31,651 80,234 434,167
7,156, 736 $ 670, 298 $ 1,684,075 9,511,109
$ 278,698 $ - $ - $ 278,698
105,049 10,316 26,153 141,518
276,823 27,187 68,917 372,927
695,222 68,277 173,080 936,579
S 1,355,792 $ 105,78 $ 268,150 S 1,729,722
36
E. Interfund Balances and Transfer
The composition of interfund balances as of September 30, 2024, is as follows:
Due From Due To Amount Purriose
Schertz EMS General $ 732,091 Short-term pool cash loan
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,
2024:
Transfer From
Transfer To
Amount
Purpose
Economic Development Corporation
General
$ 285,239
Funding for various capital projects
Economic Development Corporation
Capital Projects
12,892
Funding for various capital projects
Capital Projects
Debt Service
104,407
Suplement funds sources
F. Capital Assets
Capital asset activity for the year
ended September 30, 2024 was as follows:
Beginning
Reclassifications/ Ending
Balance
Additions
Retirements Balance
Governmental activities:
Capital assets not being depreciated:
Land
Construction in progress
Total capital assets not
being depreciated
Capital assets being depreciated:
Buildings and improvements
Machinery, equipment, and vehicles
Street and infrastructure
Total assets being depreciated
Less accumulated depreciation for:
Buildings and improvements
Machinery, equipment, and vehicles
Street and infrastructure
Total accumulated depreciation
Total capital assets being
depreciated, net
Governmental activities capital
assets, net
$ 15,214,261 $ 236,324 $ - $ 15,450,585
22,189, 761 6,917, 581 (14,151, 288) 14,956, 054
37,404,022 7,153,905 (14,151,288) 30,406�639
53,420,797 99,287 14,151,288 67,671,372
16,277,025 3,229,508 - 19,506,533
175, 473, 306 347,301 - 175,820,607
245,171,128 3,676,096 14,151, 288 262, 998, 512
(21,750,015) (3,636,002) - (25,386,017)
(10,555,924) (1,214,065) (11,769,989)
(56,000,308) 5 564 238) (61,564,546)
(88,306,247) (10,414,305) - 98 720 552)
156, 864, 881 (6,738,209) 14,151,288! 164, 277, 960
$ 194, 268. 903 $ 415,696 $ 1 194, 684, 599
37
Business -type activities:
Capital assets, not being depreciated:
Land
Water rights
Construction in progress
Total capital assets, not being
depreciated
Capital assets being depreciated:
Buildings and improvements
Machinery, equipment, and vehicles
Infrastructure
Total assets being
depreciated
Less accumulated depreciation for:
Buildings and improvements
Machinery, equipment, and vehicles
Infrastructure
Total accumulated depreciation
Total capital assets being
depreciated, net
Business -type activities capital
assets, net
Beginning Reclassifications/ Ending
Balance Additions Retirements Balance
$ 2,415,103 $ $
70,245 -
29,149,047 6,344,377
31,634,395 6,344,37
3,725,152 -
7,339,679 923,919
137,700,969 6,042,480
$ 2,415,103
- 70,245
35,493,424
37, 978, 772
3,725,152
(368,204) 7,895,394
143,743,449
148, 765, 800 6,966,399 (368,204) 155,363,995
(1,437,563) (163,917) - (1,601,480)
(6,403,573) (730,168) 368,204 (6,765,537)
(36,597,151) (41172,993) 40,770 144)
(44, 438, 287) (5,067,078) 368,204 49,137 161)
104,327,513 1,899,321 - 106,226,834
135,961,908 $ 8,243,698 $ - $ 144,205,606
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:
General government
$ 1,089,121
Public safety
1,678,411
Public environment
6,194,882
Parks and recreation
1,375,252
Cultural
65,704
Administration
10.935
Total $ _ 10,414,305
Business -type activities:
Water and sewer system $ 4,593,817
EMS 473,261
Total $ 5,067,078
Total Depreciation $ 15,481,383
G. Lona-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 $43.2 million and
sales tax revenue was $20 million.
38
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, 2024 are as follows:
Beginning
Balance
Issued
Governmental activities:
General Obligation Bonds
$ 46,045,000
$ -
Certificates of Obligation
24,565,000
19,165,000
General Obligation Bonds -
Private Placement
4,745,000
-
Premium from Debt
5,133,058
998,613
Financing Arrangement
81,921
-
Compensated Absences
1,259,918
649,767
Total governmental
$ 81•,829,897
20,813,380
Business -type activities:
General Obligation Bonds
$ 3,095,000
$ -
Certificates of Obligation
22,005,000
General Obligation Bonds -
Private Placement
430,000
Unamortized Premium
2,086,300
Financing Arrangement
245,764
-
Compensated Absences
498,709
273,407
Total business -type
$ 28,360,773
$ 273,407
Prior Year Refunding of Debt
Refunded/
Retired
Ending
Balance
Amount Due
Within One Year
$ (3,415,000) $
42,630,000
$ 2,845,000
(1,455,000)
42,275,000
3,160,000
(980,000)
3,765,000
1,010,000
(368,577)
5,763,094
-
(27,307)
54,614
27,307
_ (503, 967)
1,405,718
281,144
$ (6,749,851) 95,893,426 $ 7,323,451
$ (560,000) $ 2,535,000 $ 595,000
(855,000) 21,150,000 890,000
(215,000) 215,000 215,000
(131,680) 1,954,620 -
(81,921) 163,843 81,921
(199,484) 572,632 114,526
$ (2,043,085) $ 26,591.095 $ 1,896,447
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, 2024, the City does
not have bonds considered defeased and outstanding.
39
A summary of the terms of long-term debt outstanding at September 30, 2024, is as follows:
Issue
Amount
Maturity
_ Rate
Balance
Governmental Activities
General Obligation Bonds
2014 Series, Refunding
8,450,000
2030
2.0% - 4.0% $
5,475,000
2015 Series, Refunding
4,185,000
2031
2.0% - 3.25%
1,140,000
2016 Series
5,880,000
2036
2.0% - 4.0%
3,830,000
2017 Series
3,935,000
2037
2.0% - 4.0%
2,825,000
2018 Series, Refunding
5,830,000
2033
3.125% - 5%
3,985,000
2020 Series, Refunding
7,555,000
2036
1.5% - 4%
4,690,000
2021 Series, Refunding
4,070,000
2033
2% - 4%
3,360,000
2022 Series
18,535,000
2042
4%- 5%
17,325,000
Private Placement obligations
2007 Series GO
6,000,000
2027
4.07%
1,200,000
2018 Series GO Refunding
6,035,000
2028
2.12%
2,565,000
Certificates of Obligation
2016 Series A
2,375,000
2036
2.0% - 4.0%
1,025,000
2016 Series B
1,475,000
2036
3.0% - 3.75%
1,000,000
2017 Series
4,935,000
2037
3.0% - 3.75%
2,880,000
2018 Series
4,845,000
2038
3.0% - 5.0%
3,405,000
2019 Series
4,015,000
2039
2.5% - 5%
2,690,000
2022 Series
4,740,000
2042
2% - 5%
4,385,000
2022 Series A
8,265,000
2042
4%- 5%
7,725,000
2024 Series
19,165,000
2044
4%- 5%
19,165,000
Total Governmental Long -Term Obligations
$
88,670,000
Issue
Amount
Maturity
Rate
Balance
_Business -type Activities
General Obligation Bonds
2018 Series, Refunding
2,740,000
2026
3.125% - 5% $
885,000
2021 Series, Refunding
1,945,000
2033
2% - 3%
1,650,000
Certificates of Obligation
2018 Series
5,595,000
2028
3.0% - 5.0%
4,395,000
2019 Series
3,480,000
2039
2.5% - 5%
2,820,000
2022 Series
4,650,000
2042
2% - 5%
4,340,000
2022 Series A
10,265,000
2042
1.5% - 5%
9,595,000
Private Placement obligations
2013 Series GO Refunding
2,130,000
2025
2.58%
215,000
Total Business -Type Long -Term Obligations
$
23,900,000
40
Annual future debt service requirements of bonded debt as of September 30, 2024, are as follows:
Governmental activities:
Year Ended
September 30,
2025
2026
2027
2028
2029
2030-2034
2035-2039
2040-2044
Total
General Obligation Bonds
Principal Interest Total Princ
$ 2,845,000 $ 1,539,229 $ 4,384,229
2,970,000
1,438,288
4,408,288
3,090,000
1,291,038
4,381,038
3,510,000
1,167,513
4,677,513
3,540,000
1,038,322
4,578,322
14,895,000
3,548,668
18,443,668
7,880,000
1,765,256
9,645,256
3,900,000
588;900
4,488,900
$ 42,630,000
$ 12,377,214 $
55,007,214
Private Placement Debt
General Obligation Bonds
Year Ended
September 30,
Principal
Interest
Total
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
6601000
6,996
666,996
Total
$ 3,765,000
$ 184,456 $
3,949,456
Business -type activities:
Certificates of
Interest
ion
$ 3,160,000 $ 1,610,435 $ 4,770,435
3,050,000
1,539,069
4,589,069
1,750, 000
1,428, 331
3,178, 331
1,820,000
1,347,931
3,167,931
1,910,000
1,264,756
3,174,756
10,860,000
5,002,316
15,862,316
11,585,000
2,645,244
14,230,244
8,140;000
7200275
8,860,275
$ 42,275,000 $ 15,558,357 $ 57,833,357
General Obligation Bonds
Certificates of Obligation
Year Ended
September 30,
Prime
Interest
Total
Principal
Interest
Total
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
190,000
20,400
210,400
1,085,000
615,088
1,700,088
2030-2034
780,000
31,475
811,475
6,160,000
2,325,069
8,485,069
2035-2039
-
-
-
7,010,000
1,089,147
8,099,147
2040-2044
-
3,040,000
163,084
3,203,084
Total
$ 2,535,000
$ 239,000
$ 2, 774, 000
$ 21,150, 000
$ _ 7,132, 065 $
28282 065
Private Placement Debt
General Obligation Bonds
Year Ended
September 30, Principal Interest Total
2025 $ 215,000 $ 2,774 $ 217,774
Total 5 215,000 1 2,774 $ 217,774
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.
41
Future minimum payments on the financing arrangements are as follows:
Governmental Activities
Business -type Activities
Year Ended
September 30,
Principal Interest
Total
Principal Interest
Total
2025
$ 27,307 $ 819 $
28,126
_
$ 81,921 $ 2,458
$ 84,379
2026
27,307 819
28,126
81,922 2,458
84,379
Total
$ 54,614 $ 1,638 $
56,25
$ 1636843 $ 4,91
168 758
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.
Net pension liability
Total OPEB liability:
Due within one year:
TMRS SDBF
Retiree health plan
Total due within one year
Due in more than one year:
TMRS SDBF
Retiree health plan
Total due in more than one year
Total OPEB liability
Pension expense
OPEB expense:
TMRS SDBF
Retiree Health Plan
Total OPEB expense
III. OTHER INFORMATION
A. Retirement Plan
Business -type Activities
Governmental Water/ _
Activities Sewer EMS Totals
$ 16. 326, 037 1 1,603,351 4,064.464 $ 21, 993,852
$ 12,057 $
1,184
$ 2,862 $
16,103
74,450
7,311
18,535
100.,296
86, 507
8,49
21,397
116; 399
624,415
61,321
155,591
841,327
1,590,317
156,.184
395,918
2,142,419
2,214,732
217,.505
551,509
2 98, 3; 746
$ 2,301,239 $
226,000
$ 572,906 5
3,100,145
Business -type Activities
Governmental Water/
Activities Sewer EMS Totals
$ 3.874.984 $ 380,556 $ 964,701 1 _ 5,220,241
37,503 3,683 9,337 50,523
174.665 17,153 43,484 235,302
$ 212,168 $ 20,836 $ 52,821 $ 285,825
Plan Description. The City of Schertz participates as one of 934 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.
42
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, 2023 valuation and measurement date, the following employees were covered by the
benefit terms:
Inactive employees or beneficiaries currently receiving benefits 158
Inactive employees entitled to but not yet receiving benefits 326
Active employees 394
Total 878
Contributions. Member contribution rates in TMRS are either 5%, 6% or 7% of the Member's total
compensation, 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 city's
contribution rate is based on the liabilities created from the benefit plan options selected by the city and any
changes in benefits or actual experience over time.
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 16.40% and 16.81% in calendar years 2023 and 2024, respectively.
The City's contributions to TMRS for the year ended September 30, 2024 were $5,206,428 and were equal
to the required contributions.
Net Pension Liability. The City's Net Pension Liability (NPL) was measured as of December 31, 2023, 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.
Actuarial Assumptions
The Total Pension Liability in the December 31, 2023, 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
43
Salary increases are based on a service -related table. Mortality rates for active members are based on the
PUB(10) mortality tables with 110% of the Public Safety table used for males and 100% of 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. Male rates are multiplied by 103% and
female rates are multiplied by 105%. The rates for actives, healthy retirees and beneficiaries are projected
on a fully generational basis by the most recent Scale MP-2021 to account for future mortality
improvements. For disabled annuitants, the same mortality tables for healthy retirees are 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 is applied, for males and females respectively, to reflect the impairment for younger members
who become disabled. The rates are projected on a fully generational basis by the most recent Scale MP-
2021 to account for future mortality improvements subject to the 3% floor.
The actuarial assumptions were developed primarily from the actuarial investigation of the experience of
TMRS over the four-year period from December 31, 2018, to December 31, 2022. The assumptions were
adopted in 2023 and first used in the December 31, 2023, actuarial valuation. The post -retirement mortality
assumption for Annuity Purchase Rates (APRs) is based on the Mortality Experience Investigation Study
covering 2009 through 2011 and dated December 31, 2013. Plan assets are managed on a total return basis
with an emphasis on both capital appreciation as well as the production of income 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 by best estimate ranges
of expected returns for each major asset class. The long-term expected rate of return is determined by
weighting the expected return for each major asset class by the respective target asset allocation
percentage. The target allocation and best estimates of the expected return for each major asset class in
fiscal year 2023 are summarized in the following table:
Long -Term Expected
Real Rate of Return
Asset Class
Target Allocation
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%
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.
44
The below schedule presents the changes in the Net Pension Liability as of December 31, 2023:
Balance at 12/31/2022
Changes for the year:
Service cost
Interest
Difference between expected
and actual experience
Change in assumptions
Contributions - employer
Contributions - employee
Net investment income
Benefit payments, including refunds
of employee contributions
Administrative expense
Other changes
Net changes
Balance at 12/31/2023
Increase i Decease
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a) b (a)-(b)
$ 103,138,378 $ 78,352,223 $ 24,786,155
4,835,113
7,004,394
820,236
(133,135)
(3,574,272)
8,952,336
4,384,538
1,896,896
9,095,570
(3,574,272)
(57,691)
_(402)
_11,744,639
4,835,113
7,004,394
820,236
(133,135)
(4,384,538)
(1,896,896)
(9,095,570)
57,691
402
2, 792, 303)
$ 112, 090, 714 $ 90, 096, 862 $ 21, 993, 852
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 $ 40,198,160 $ 21,993,852 $ 7,264,962
Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions. For the year
ended September 30, 2024, the City recognized pension expense of $5,220,241. Also, as of September 30,
2024, the City reported deferred outflows of resources and deferred inflows of resources related to pensions
from the following sources:
Differences between expected and actual
economic experience
Changes in actuarial assumptions
Difference between projected and actual
investment earnings
Contributions subsequent to the measurement date
Total
Deferred Outflows Deferred Inflows
of Resources of Resources
$ 2,429,435 $ 37,516
10,134 104,002
1,961,371 -
4,075,069 -
$ 8,476,009 $ 141,518
$4,075,069 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, 2025. 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,
2025
$ 1,393,514
2026
1,521,367
2027
2,020,199
2028
(675,658)
45
B. Other Post-EmMovment 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, 2023, the valuation and measurement date, consisted of:
Inactive employees or beneficiaries currently receiving benefits 125
Inactive employees entitled to but not yet receiving benefits 79
Active employees 394
Total 598
Contributions. The City contributes to the SDBF at a contractually required rate as determined by an
annual actuarial valuation, which was 0.22% for 2024 and 2023, 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, 2024, were $18,684 representing contributions for both active
and retiree coverage, which equaled the required contributions each year.
46
Total OPEB Liability. The Total OPEB Liability in the December 31, 2023 actuarial valuation was
determined using the following actuarial assumptions and inputs:
Measurement year ended December 31,
Inflation rate
Discount rate
Actuarial cost method
Projected salary increases
Administrative expenses
Mortality Rates - Service Retirees
Mortality Rates - Disabled Retirees
2023
2.50%
3.77%
Entry Age Normal Method
3.60%to 11.85%including inflation
All administrative expenses are paid through the Pension
Trust and accounted for under reporting requirements
under GASB Statement No. 68.
2019 Municipal Retirees of Texas Mortality Tables. Male
rates are multiplied by 103% and female rates are multiplied
by 105%. The rates are projected on a fully generational
basis by the most recent Scale MP-2021 (with immediate
convergence).
2019 Municipal Retirees of Texas Mortality Tables with a 4
year set -forward for males and a 3 year set -forward for
females. Inforward 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 the most recent Scale MP-2021 (with
immediate convergence) 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, 2023, valuation were based on the results of an actuarial experience study for the
period December 31, 2014 to December 31, 2018.
Discount Rate. The SDBF program is treated as an unfunded OPEB plan because the SDBF trust covers
both actives and retirees, and the assets are not segregated for these groups. As such, a single discount rate
of 3.77% 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,
2023.
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 (3.77%)
in measuring the total OPEB liability.
Total SDB OPEB Liability
1% Decrease in
Discount Rate
(2.77%)
1,047,274
47
Discount Rate
(3.77%)
$ 857,430
1% Increase in
Discount Rate
(4.77%)
711,542
Changes in the Total OPEB Liability. Total City's Total OPEB Liability (TOL), based on the above actuarial
factors, as of December 31, 2023, the measurement and actuarial valuation date, was calculated as follows:
Total OPEB
Liability
Balance at 12/31/2022 $ 763,943
Changes for the year:
Service cost 37,901
Interest 31,378
Difference between expected and actual experience (5,407)
Changes of assumptions or other inputs 45,858
Benefit payments, including refunds of employee contributions (16,243)
Net changes 93,487
Balance at 12/31/2023 $ 857,430
Changes in assumptions and other inputs reflect a change in the discount rate from 4.05% to 3.77%.
OPEB Expense and Deferred Inflows and Outflows of Resources Related to OPEB. For the year
ended September 30, 2024, the City recognized OPEB expense of $50,523. Also, as of September 30, 2024,
the City reported deferred outflows and inflows of resources related to the TMRS OPEB from the following
sources:
Differences between expected and
actual economic experience
Changes in actuarial assumptions
Contributions subsequent to the measurement date
Total
Deferred Outflows Deferred Inflows
of Resources of Resources
15,610 $ 41,298
172,618 331,629
14,545
202,773
$ 3721927
$14,545 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, 2025. 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,
2025 $
(24,033)
2026
(30,186)
2027
(39,022)
2028
(60,290)
2029
(34,619)
Thereafter
3,451
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. No assets are accumulated in a trust
that meets the criteria in paragraph 4 of GASB Statement No. 75.
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, 2023, the valuation date,
consisted of:
Inactive employees or beneficiaries currently receiving benefits 8
Inactive employees entitled to but not yet receiving benefits -
Active employees 376
Total 384
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 a City participating in TMRS.. 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 $5 for retiree only to $1,737 for a retiree and their
family.
The City's Retiree Health OPEB Liability (TOL) as of December 31, 2023, was calculated as follows:
Total OPEB
Liability
Balance at 12/31/2022
$ 2,245,759
Changes for the year:
Service cost
207,231
Interest
93,119
Difference between expected and actual experience
28,527
Changes of assumptions or other inputs
(231,625)
Benefit payments, including refunds of employee contributions
(100,296)
Net changes
(3,044)
Balance at 12/31/2023
$ 2,242,715
Changes of assumptions reflect a change in the discount rate from 4.05% as of December 31, 2022, to
3.77% as of December 31, 2023. Additionally, the demographic and salary increase assumptions were
updated to reflect the 2023 TMRS Experience Study, and both the participation assumption and health care
trend rates assumptions were updated to reflect the plan's anticipated experience.
The following presents the TOL of the City, calculated using the discount rate of 3.77% as well as what the
City's TOL would be if it were calculated using a discount rate that is 1-percentage point lower (2.77%) and
1-percentage point higher (4.77%) than the current rate:
1% Decrease in 1% Increase in
Discount Rate Discount Rate Discount Rate
(2.77%) (3.77%) (4.77%)
Total OPEB liability - retiree health $ 2,457,825 $ 2,242,715 $ 2,047,267
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 $ 1,985,880 $ 2,242,715 $ 2,545,770
49
For the year ended September 30, 2024, the City recognized OPEB expense of $235,302. Also, as of
September 30, 2024, 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 $ 126,921 $ 169,253
Changes in actuarial assumptions 256,412 767,326
Contributions subsequent to the measurement date 50,834 -
Total $ 434,167 $ 936,579
$50,834 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, 2025. 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
$ (65,049)
2025
(65,049)
2026
(65,049)
2027
(73,327)
2028
(66,442)
Thereafter
(218,330)
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, 2024. Separate financial statements for the
Schertz/Seguin Local Government Corporation may be obtained from the City of Seguin, 210 East Gonzales
Street, Seguin, Texas 78156.
The City of Schertz is jointly liable, together with the City of Seguin, for operating deficits and long-term
debt of the Schertz/Seguin Local Government Corporation. The Corporation had net revenue bonds
outstanding in the amount of $150,143,684 (as of September 30, 2023, 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
$21,186,897. This amount reflects the City's portion of the net position of SSLGC as of September 30, 2023,
the most recent fiscal year for which information is available.
so
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, 2024. 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 $1,021,809 as of September 30, 2024.
D. Commitments and Contin encie
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, 2041. The TIRZ has collected $6,981,398 from
taxing entities (net of administrative reimbursements) and remitted $5,325,000 to the developer as of
September 30, 2024.
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, 2024, 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, 2024, the City had nine active incentive agreements.
On May 2, 2017, the City and the Corporation approved the Schertz Incentive Policy which outlines the
City's primary tools to attract commercial investment and promote economic development. Projects are
selected on a case -by -case basis in accordance current policy and state laws at the discretion of the
governing body. All incentive agreements are formalized through a performance agreement with specified
terms and recapture criteria.
51
The SEDC Incentive program, authorized by Chapters 501, 502 and 505 of the Texas Local Government
Code, enables the Corporation to fund allowable projects from the collection of one-half of one percent of
sales tax proceeds collected in the City of Schertz. In accordance with state law, the SEDC Incentive Policy
establishes grants and loans for businesses that create Primary Jobs for the following categories: Existing
Businesses (3 years of operation within City), Small Businesses (fewer than 50 full-time jobs or annual sales
less than $10 million), Large Impact Businesses (Up to $100 million in taxable property), and Extra -Large
Businesses (over $100 million in taxable property).
The City and Corporation's outstanding incentive agreement grants are as follows:
SEDC - LGC 501.101 (Bolster Primary Jobs):
Ace Mart
Caterpillar Hydra
Caterpillar Aquos
Schertz RE
Mile Hi
Totals
SEDC - LGC 501.103 (Infrastructure):
Core 5
Kellum
Schertz 312
Mob
Boom Connect
Schertz Station
Palapas Johns
Freckles
Totals
Service Concession Arrangement
FY 2023-24 Amt. Est. Remaining Grant
$ 33,985 $ -
25, 000 25,000
- 361,559
25,000 1,633,870
- 2,167. 364
$ 83,985 $ 4.187,793
$ 350,000
350,000
2,500,000
40,000
6,500,000
8,000,000
154,100
50,000
17, 944,100
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
through 2037. 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
$710,336. 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.
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 $710,336 on the government -wide statements at year-end
pursuant to the service concession arrangement, and a deferred inflow of $278,698 for the present value of
maintenance costs estimated over the life of the Service Concession arrangement. The balance of these two
amounts is recorded as a deferred inflow of resources.
Litigation
The City is the subject of various claims and litigation that have arisen in the course of its operations.
Management is of the opinion that the City's liability in these cases, if decided adversely to the City, will not
have a material effect on the City's financial position.
52
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. During the
fiscal year the City of Cibolo joined the CCMA and will begin sharing costs of the project. Should additional
members join, the City's share of the costs would be reduced.
Future commitments to CCMA are as follows:
Year Ended
September 30,
2025
$ 714,050
2026
710,850
2027
717,200
2028
712,650
2029
712,650
2030-2034
3,568,200
2035-2039
3,569,000
2040-2043
2,858,800
2044
712,400
Total $ 14,275,800
Construction Commitments
The City of Schertz has entered into commitments for various projects as follows:
Primary Government:
Estimated Project
Expended to
Estimated Future
Cost to City
Date
Commitment
Governmental Activities:
FM 78 and Main Street
$ 25,668,537
$ 2,442,331
$ 23,226,206
FM 2252 Water Relocation
275,000
247,054
27,946
SCADA Upgrade
189,000
43,489
145,511
Lookout Rd Signalization
60,000
-
60,000
Lookout Rd Reconstruction
5,710,000
-
5,710,000
Fire Station 4
12,297,056
360,878
11,936,178
Badge Access Upgrade
477,313
440,801
36,512
Great N Trail 2
160,000
80,937
79,063
Energy Efficient Projects
1,264,323
14,323
1,250,000
Total Governmental Commitments
46,101,229
_ 3,629,813
42,471,416
Business -Type Activities:
Woman Hollering WasteWater
12,724,305
11,696,303
1,028,002
Corbett Ground Storage
8,606,911
4,644,216
3,962,695
Riata Lift Station
2,791,680
416,766
2,374,914
E Live Oak - IH35 24" Line
6,299,350
1,327,060
4,972,290
FM1518 Utility Relocation
10,600,000
10,179,575
420,425
Loop Lines Project 1
825,000
134,388
690,612
Total Business -Type Activities
41,847,246
28,398,308
13,448,938
Total Estimated Future Commitments
$ 87,948,475
$ 32,028,121
$ 55,920,354
53
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:
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.
GASB Statement No. 102, Certain Risk Disclosures - The objective of this Statement is to provide users of
government financial statements with information about risks related to a government's vulnerabilities due
to certain concentrations or constraints that is essential to their analyses for making decisions or assessing
accountability. This Statement will become effective for reporting periods beginning after June 15, 2024,
and the impact has not yet been determined.
GASB Statement No. 103, Financial Reporting Model Improvements - The objective of this Statement is to
improve key components of the financial reporting model to enhance its effectiveness in providing
information that is essential for decision making and assessing a government's accountability. This
Statement also addresses certain application issues. This Statement will become effective for reporting
periods beginning after June 15, 2025, and the impact has not yet been determined.
GASB Statement No. 104, Disclosure of Certain Capital Assets - The objective of this Statement is to
provide users of government financial statements with essential information about certain types of capital
assets. This Statement requires certain types of capital assets to be presented separately in the note
disclosures, including right -to -use assets related to leases, Subscription -Based Information Technology
Arrangements, and public -private or public -public partnerships. Other intangible assets are also required
to be presented separately by major class. Additional disclosures have also been required for capital
assets held for sale. This Statement will become effective for reporting periods beginning after June 15,
2025, and the impact has not yet been determined.
54
THIS PAGE LEFT BLANK INTENTIONALLY
REQUIRED
SUPPLEMENTARY INFORMATION
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
GENERAL FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2024
Variance With
Final Budget
Original
Final
Actual
Positive
Budget
Budget
Amounts
(Negative)
REVENUES
Taxes
$ 35,380,000
$ 35,299,242
$ 34,041,974
$ (1,257,268)
Permits and fees
1,428,420
2,413,420
2,627,370
213,950
Service fees
1,940,844
2,140,844
2,339,769
198,925
Fines and fees
402,980
402,980
366,823
(36,157)
Intergovernmental
2,356,000
3,156,000
2,940,640
(215,360)
Investment earnings
1,200,000
1,200,000
1,251,166
51,166
Miscellaneous
587,407
587,407
897,538
310131
Total Revenues
43,295,651
45,199,893
44,465,280
734,613)
EXPENDITURES
General government:
Council
151,565
151,565
140,502
11,063
City manager
977,360
999,288
1,137,261
(137,973)
Municipal court
447,441
447,441
421,103
26,338
311 customer service
138,257
150,006
150,511
(505)
Planning & zoning
450,686
450,686
443,834
6,852
Legal
90,000
140,000
138,639
1,361
City secretary
240,733
267,971
247,316
20,655
Nondepartmental
2,231,529
1,806,310
1,953,880
(147,570)
Public affairs
674,912
674,912
632,389
42,523
Engineering
1,371,896
1,371,896
1,169,769
202,127
Economic development
526,840
526,840
401,155
125,685
Citizens assistance
317,666
317,666
309,556
8,110
Special events
45,000
45,000
_ 54,404
_ (9,404}
Total General Government
7,663;885
7,349,581
7,200,319
149,262
Public safety:
Police department
13,798,202
14,445,017
14,231,945
213,072
Fire department
8,385,016
9,185,016
9,028,890
156,126
Inspection
1,370,411
1,3701411
1,302,905
67,506
Total Public Safety
23,553,629
25,000,444
24,563,740
436,704
Public environment:
Streets
29720,161
3,373,851
2,502,886
870,965
Total Public Environment
2.,720,161.
3,373,851
2,502,886
870,965
Parks and recreation:
Parks
2,384,461
2,624,215
2,821,887
(197,672)
Pools
594,552
669,552
671,771
(2,219)
Community/Civic Center
576,841
692,841
682,924
9,917
Total Parks and Recreation
3,555,854
3,986,608
4,176,582
189 974
Cultural:
Library _ _ 1,386,218 1,436,902 1,429,406 7,496
Total Cultural 1,386,218 1,436,902 1,429,406 7,496
55
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
GENERAL FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2024
EXPENDITURES (CONTINUED)
Administration:
Information technology
Human resources
Finance
Purchasing & asset management
Building maintenance
Fleet service
Interfund charges
Total Administration
Total Expenditures
Excess of revenues over expenditures
Original Final
Budget Budget
Variance With
Final Budget
Actual Positive
Amounts (Negative)
3,355,379
3,382,118
3,378,929
3,189
854,880
914,880
887,441
27,439
792,929
792,929
775,346
17,583
328,466
328,466
250,623
77,843
2,062,642
2,162,134
2,123,596
38,538
1,486,000
1,790,387
1,944,815
(154,428)
(3,195,837)
3 195 837
(3,193,251)
(2,4586)
5,684,459
6,175,077
6,167,499
7,578
44,564,206
47,322,463
46,040,432
1,282,031
(1,268,555)
(2,122,570)
(1,575,152)
547,418
OTHER FINANCING SOURCES (USES)
Transfers in
9,000
9,000
285,239
276,239
Transfers out
(1,277,757)
(1,277.757)
-
_ 1,277,757
Total Other Financing Sources (Uses)
(1,268,757)
(1,268,757)
285,239
14553,996
NET CHANGE IN FUND BALANCE
(2,537,312)
(3,391,327)
(1,289,913)
2,101,414
FUND BALANCE - BEGINNING
19,237,616
19,237,616
19,237,616
-
FUND BALANCE - ENDING
$ 16,700,304
151846,289
$ 17,947,703
2,101,414
56
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
ECONOMIC DEVELOPMENT CORPORATION
FOR THE YEAR ENDED SEPTEMBER 30, 2024
REVENUES
Taxes
Investment income
Miscellaneous
Total Revenues
EXPENDITURES
Current:
General government
Administration
Total Expenditures
Excess of revenues over expenditures
Variance With
Final Budget
Original
Final
Actual
Positive
Budget
Budget
Amounts
(Negative)
$ 7,092,000
$ 7,092,000
$ 6,698,059
$ (393,941)
1,315,000
1,315,000
1,868,124
553,124
-
-
1,101
1,101
8,407,000
8,407,000
8,567,284
159,183
3,716,870 3,716,870 384,286 3,332,584
618,183 618,183 557,505 60,678
4,3351053 4` 3�,053 941,791 3,393,262
4,,071,947 4,071,947 7,625,493 3,553,546
OTHER FINANCING SOURCES (USES)
Transfers out = - (298jMj (298,131]
Total Other Financing Sources (Uses) - - (298,131) (298,131)
NET CHANGE IN FUND BALANCE 4,071,947 4,071,947 7,327,362 3,255,415
FUND BALANCE - BEGINNING 32,995,834 32,995,834 32,995,834 -
FUND BALANCE - ENDING S 37,067,781 $ 37,067,781 40.323,196 3,255,415
57
CITY OF SCHERTZ, TEXAS
NOTES TO BUDGETARY SCHEDULES
SEPTEMBER 30, 2024
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, 2024, actual expenditures did not exceed budgeted expenditures at
the fund level for any of the City's funds.
Encumbrance accounting, in which appropriations are recorded as budgetary expenditures, is not utilized by
the City.
58
CITY OF SCHERTZ, TEXAS
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
TEXAS MUNICIPAL RETIREMENT SYSTEM
FOR THE YEAR ENDED SEPTEMBER 30, 2024
Measurement Date December 31, 2023 2022 2021 2020
Total pension liability
Service cost
$ 4,835,113
$ 4,576,714 $
4,211,795
$ 3,761,994
Interest on total pension liability
7,004,394
6,323,215
5,766,957
5,326,206
Difference between expected and actual
experience
820,236
2,387,281
1,060,260
(154,592)
Change of assumptions
(133,135)
-
-
-
Benefit payments/refunds of contributions
(3,574,272)
_ _ (3,075,473)
(2,885,733)
(2,372,023
Net Change in Total Pension Liability
8,952,336
10,211,737
8,153,279
6,561,585
Total Pension Liability, Beginning
103,138,378
92,926,641
84,773,362
78,211,777
Total Pension Liability, Ending (a) 112 090 714 103 138,378 $ 92,926,641 1 84,773,362
Plan fiduciary net position
Contributions - employer
$ 4,384,538 $
4,133,310 $
3,831,461
$ 3,327,434
Contributions - employee
1,896,896
1,783,798
1,643,398
1,474,466
Net investment income
9,095,570
(5,958,648)
9,113,755
4,760,749
Benefit payments/refunds of contributions
(3,574,272)
(3,075,473)
(2,885,733)
(2,372,023)
Administrative expenses
(57,691)
(51,455)
(42,101)
(30,767)
Other
(402)
61,401
288
(1,200)
Net Change in Fiduciary Position
11,744,639
(3,107,067)
11,661,068
7,158,659
Fiduciary Net Position, Beginning
78,352,223
81,459,290 _
69,798,222
62,639,563
Fiduciary Net Position, Ending (b)
90,096,862
78,352,223
81,459,290
69,798,222
Net pension liability = (a)-(b)
$ 21,993,852
24,786,.155 _
11,467,351
14,975,140
Fiduciary Net Position as a Percentage of
Total Pension Liability
80.38%
75.97%
87.66%
82.34%
Covered Payroll
$ 27,072,303 $
25,497,946 $
23,477,118
$ 21,063,794
Net Pension Liability as a Percentage of
Covered Payroll
81.24%
97.21%
48.84%
71.09%
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 j 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
11095,260
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
36412844
$ 15,572,214 $
199687,608
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
CITY OF SCHERTZ, TEXAS
SCHEDULE OF EMPLOYER CONTRIBUTIONS
TEXAS MUNICIPAL RETIREMENT SYSTEM
FOR THE YEAR ENDED SEPTEMBER 30, 2024
Fiscal Year Ended September 30, 2024 2023 2022 2021
Actuarially determined contribution $ 5,206,428 $ 4,349,322 $ 4,245,872 $ 3,700,948
Contributions in relation to the actuarially
determined contribution 5,206,428 4,349,322 4,245,.872 3,700,948
Contribution deficiency (excess) - - - -
Covered payroll 31,140,466 26,535,541 26,163,046 22,879,083
Contributions as a percentage of covered payroll 16.72% 16.39% 16.23% 16.18%
NOTES TO SCHEDULE OF CONTRIBUTIONS
Valuation Date:
Actuarially determined contribution rates are calculated as of December 31st and become
effective on January 1st, 13 months and a day later.
Methods and Assumptions Used to Determine Contribution Rates:
Actuarial cost method Entry age normal
Amortization method Level percentage of payroll, closed
Remaining amortization period 22 Years
Asset valuation method 10 year smoothed market; 12% soft corridor
Inflation 2.5%
Salary increases 3.60% to 11.85% including inflation
Investment rate of return 6.75%
Retirement age Experience -based table of rates that are specific to the
City's plan of benefits. Last updated for the 2013 valuation
pursuant to an experience study of the period ending 2022.
Mortality Post -retirement: 2019 Municpal Retirees of Texas Mortality
Tables. The rates are projected on a fully generational basis
with scale UMP. Pre -retirement: PUB(10) mortality tables,
with the Public Safety table used for males and the General
Employee table used for females. The rates are projected
on a fully generational basis with scale UMP.
Other Information: There were no benefit changes during the year.
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%
62
CITY OF SCHERTZ, TEXAS
SCHEDULE OF CHANGES IN TMRS OTHER POST -EMPLOYMENT BENEFIT LIABILITY
AND RELATED RATIOS
FOR THE YEAR ENDED SEPTEMBER 30, 2024
Measurement Date December 31,
Total OPEB liability
Service cost
Interest on total OPEB liability
Differences in actuarial experience
Change of assumptions
Benefit payments
Net change in total OPEB liability
Total OPEB liability, beginning
Total OPEB liability, ending (a)
Covered -employee payroll
Total OPEB liability as a percentage of
covered -employee payroll
2023 2022
$ 37,901
$ 73,900
31,378
21,768
(5,407)
(7,347)
45,858
(462,756)
(16,243}
(15,290)
93,487
(389,725)
2021
2020
$ 70,429
$ 50,554
21,248
22,915
(1,360)
(4,382)
42,012
158,118
(11,739
_ (44213)
120,590
222,992
763,943 1,153,668 1,033,078 810,086
$. 857,430 $ 763,943 $ 1153f668 $$ 1,033,078
$ 27,072,303 $ 25,497,946 $ 23,477,118 $ 21,063,794
3.17% 3.00% 4.91% 4.90%
Note: 10 years of data is required to be provided in this schedule. As of year-end, all years are not available.
Additional years will be added in the future as the information becomes available.
NOTES TO SCHEDULE
Valuation Date:
Actuarially determined contribution rates are calculated as of December 31st and become effective on
January 1st, 13 months and a day later.
Methods and Assumptions Used to Determine Contribution Rates:
Inflation 2.50%
Salary increases 3.50% to 11.50% including inflation
Discount rate 4.05%
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
Mortality rates - disabled retirees
Other information
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
63 No. 75 to pay related benefits.
2019
2018
$ 33,528
$ 37,794
26,904
21,182
(105,282)
86,276
148,494
(54,027)
(3,945)
(3,779]
99,699
87,446
2017
$ 29,926
20,123
57,257
(3,521)
103,785
710,.387 622,941 519,156
$ 810,086 $ 710,387 $ 622,941
$19,722,641 $18,896,766 $17,603,310
4.11% 3.76% 3.54%
64
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, 2024
Measurement Date December 31, 2023 2022 2021 2020
Total OPEB liability
Service cost
Interest on total OPEB liability
Difference in actuarial experience
Change of assumptions
Benefit payments
Net change in total OPEB liability
Total OPEB liability, beginning
Total OPEB liability, ending (a)
Covered -employee payroll
Total OPEB liability as a percentage of
covered -employee payroll
$ 207,231 $ 230,479 $ 161,830 $ 141,084
93,119 48,122 50,064 60,561
28,527 (4,764) 134,106 4,341
(231,625) (495,992) (191,684) 161,146
(100,296] (64.,389) (88,569) (64,499]
(3,044) (286,544) 65,747 302,633
2,245,759 _ 2,532,303 2,466,556 2,163,923
$ 2,242,715 $ 2,245,759 $ 2,532,303 $ 2,466,,556
$ 26,795,229 $ 25,255,936 $ 23,290,477 $ 20,870,983
8.37% 8.89% 10.87% 11.82%
Note: 10 years of data is required to be provided in this schedule. As of year-end, all years are not available. Additional
years will be added in the future as the information becomes available.
NOTES TO SCHEDULE
Valuation Date: December 31, 2023
Methods and Assumptions Used to Determine Contribution Rates:
Actuarial cost method
Individual entry -age
Discount rate
3.77% as of December 31, 2023
Inflation
2.50%
Salary increases
3.60% to 11.85% including inflation
Demographic assumptions
Based on the 2023 experience study conducted for
the Texas Municipal Retirement System (TMRS).
Mortality
For healthy retirees, the gender -distinct 2019
Municipal Retirees of Texas mortality tables are used,
with male rates multiplied by 103% and female rates
multiplied by 105%. The rates are projected on a
fully generational basis using the ultimate mortality
improvement rates in the MP-2021 table to account
for future mortality improvements.
Health care trend rates
Initial rate of 7.20% declining to an ultimate rate of
4.25% after 15 years.
Participation rates
For all non -Medicare retirees, 25% if retiring from
age 50 to 64.
Other information
The discount rate changed from 4.05% as of
December 31, 2022 to 3.77% as of December 31,
2023.
No assets are accumulated in a trust that meets the
criteria in paragraph 4 of Statement No. 75 to pay
related benefits.
65
2019 2018 2017
$ 125,648 $ 121,821 $ 107,517
78,646 67,947 69,435
(343,086) 14,962 -
275,398 (81,106) 96,092
(59,401) (57,530} (42,189]
77,205 66,094 230,855
2,086,718 2,020,624 1,789,769
1 2,163,923 $ 2,086,718 $ 2,020,624
$ 19,521,924 $ 18,974,951 $ 16,068,891
11.08% 11.00% 12.57%
66
THIS PAGE LEFT BLANK INTENTIONALLY
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 - Nonma'or Governmental Funds
Hotel Occupancy Fund - will account for proceeds of hotel occupancy taxes to be used strictly for those
kinds of programs that promote the tourism industry.
Park Fund - will account for revenues from developers' fees (in lieu of park land dedication), grants, and
donations and is designed to monitor and manage improvement of the City's park system.
Tree Mitigation Fund - will account for revenues from permits, grants and donations to preserve and replace
trees in the City.
Treasury Forfeitures Fund - will account for revenue received from drug related cases in conjunction with
other law enforcement agencies within the jurisdiction of the U.S. Treasury department.
Justice Forfeitures Fund - will account for revenue received from drug related cases in conjunction with
other law enforcement agencies within the jurisdiction of the US Department of Justice.
State Forfeitures Fund - will account for revenue received from drug related cases in conjunction with other
law enforcement agencies within the jurisdiction of the State Forfeiture Program.
Grant Fund - will account for revenue and expenditures related to federal and state grant programs.
Library Advisory Board - to account for certain fees generated at the library to be used by the Board for
general improvements to the Library.
Historical Committee Fund - will account for funds received for the preservation of the history of the City.
Capital Recovery Roadways Fund - to account for a fee assessed for capital recovery on new construction.
CITY OF SCHERTZ, TEXAS
COMPARATIVE BALANCE SHEETS
GENERAL FUND
SEPTEMBER 30, 2024
(WITH COMPARATIVE TOTALS FOR 2023)
ASSETS
Cash and cash equivalents
Investments
Receivables (net of allowances)
Taxes
Accounts and other
Due from other funds
Inventory
Restricted assets:
Cash and cash equivalents
Total Assets
LIABILITIES
Accounts payable
Accrued salaries and benefits
Customer deposits
Due to other governments
Due to other funds
Unearned revenues
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total Deferred Inflows of Resources
FUND BALANCES
Nonspendable for:
Inventory
Restricted for:
Police and public safety/municipal court
Municipal court
PEG capital fees
Animal control
Scholarships
Committed for:
Civic Center/CIED
Assigned for:
Property replacement
Subsequent year's budget
Unassigned
Total Fund Balances
Total Liabilities, Deferred inflows of Resources,
and Fund Balances
67
2024
$ 14,004,790
2,499,161
3,293,402
1,134,923
1,376,444
285,571
2023
$ 16,338,407
2,438,934
3,352,850
1,840,329
644,353
342,248
110.,791 598,112
22,705,082 25,555,233
2,446,518
3,522,925
777,467
529,285
33,027
6,652
50,043
31,357
-
91,499
31,498
52,765
3,338,553
4,234,483
1,418,826 2,083,134
1,418,826 2.083134
285,571 342,248
409,637
355,469
715,579
786,902
136,899
884,536
47,461
44,690
149,097
149,097
1,260,939 1,155,078
1,007,626 954,151
2,596,149 2,564,504
11, 338, 745 12, 000,941
17,947,703 19,237,616
1 22,705,082 $259555,233
CITY OF SCHERTZ, TEXAS
COMPARATIVE SCHEDULES OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
GENERAL FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2024
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED 2023)
REVENUES
Taxes
Permits and fees
Service fees
Fines and fees
Intergovernmental
Investment earnings
Miscellaneous
Total Revenues
EXPENDITURES
Current:
General government
Public safety
Public environment
Parks and recreation
Cultural
Administration
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues Over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCE
FUND BALANCES - BEGINNING
FUND BALANCES - ENDING
68
2024
$ 34,041,974
2,627,370
2,339,769
366,823
2,940,640
1,251,166
897,538
44,465, 280
7,106,636
23,365,331
2,518,012
4,161,603
1,429,406
5,688,426
1,771,018
46.040.432
(1,575,152)
285,239
285,239
(1,289,913)
19, 2371616
$ 17,947,703
2023
$ 33,136,640
2,077,759
2,124,689
448,805
2,319,760
1,050,211
636,278
41, 794,142
6,943,385
19,492,971
1,782,809
3,134,333
1,277,825
4,538,699
1,584,157
38,754,179
3,039,963
869.246
(869,246
2,170,717
17,066,899
$ 19.,237,616
CITY OF SCHERTZ, TEXAS
COMPARATIVE BALANCE SHEETS
ECONOMIC DEVELOPMENT CORPORATION
SEPTEMBER 30, 2024
(WITH COMPARATIVE TOTALS FOR 2023)
ASSETS
Cash and cash equivalents
Investments
Receivables, net of allowances:
Taxes
Accounts and other
Total Assets
LIABILITIES
Accounts payable
Total Liabilities
FUND BALANCES
Restricted for:
Economic development
Total Fund Balances
Total Liabilities and Fund Balances
69
2024 2023
$ 36,851,691 $ 29,560,533
2,330,549 2,253,041
1,141,814 1,183,053
7,949 7,949
401.332,003 33,004,576
8,807 8,742
8,807 8,742
40,323,196
32,995,834
40,323,196
32,995,834
40,332,003
33,004,576
CITY OF SCHERTZ, TEXAS
COMPARATIVE SCHEDULES OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
ECONOMIC DEVELOPMENT CORPORATION
FOR THE YEAR ENDED SEPTEMBER 30, 2024
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED 2023)
2024
2023
REVENUES
Taxes
$ 6,698,059
$ 6,548,941
Investment earnings
1,868,124
1,262,346
Miscellaneous
11101
-
Total Revenues
8,5671284
7,811,287
EXPENDITURES
Current:
General government
384,286
264,776
Administration
557,505
593,805
Total Expenditures
941,791
858.581
Excess of Revenues Over Expenditures
7,625,493
6,952,706
OTHER FINANCING SOURCES (USES)
Transfers out
(298,131)
-
Total Other Financing Sources (Uses)
(298,131}
-
NET CHANGE IN FUND BALANCE
7,327,362
6,952,706
FUND BALANCES - BEGINNING
32,995,834
_ 26,043,128
FUND BALANCES - ENDING
40t3231196
$ 32,995,834
70
CITY OF SCHERTZ, TEXAS
COMPARATIVE BALANCE SHEETS
DEBT SERVICE FUND
SEPTEMBER 30, 2024
(WITH COMPARATIVE TOTALS FOR 2023)
ASSETS
Cash and cash equivalents
Receivables, net of allowances:
Taxes
Total Assets
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total Deferred Inflows of Resources
FUND BALANCES
Restricted for:
Debt service
Total Fund Balances
Total Deferred Inflows of Resources and Fund
Balances
71
2024 2023
$ 2,029,913 $ 1,159,250
195,433 i 164,420
2,225,346 1,323,670
195,433 209,812
195 433 209,812
2,029,913 1.113.858
2,029,913 1.113, 858
2, 225, 346 1,323,670
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, 2024
(WITH COMPARATIVE ACTUAL TOTALS FOR 2023)
Variance With
2024
Final Budget
2023
Original
Final
Actual
Positive
Actual
Budget _
Budget
Amounts
(Negative)
Amounts
REVENUES
Property taxes
$ 9,050,000
$ 9,050,000
$ 8,917,461
$ (132,539)
$ 7,710,299
Investment income
185,000
185,000
195,912
10,912
105,398
Miscellaneous
100,000
100,000
221,136
121,136
_ 181,935
Total Revenue
9,335,000
9,335,000
9,334,509
(491]
7,997,632
EXPENDITURES
Debt service:
Principal
5,850,000
5,850,000
5,850,000
-
5,850,000
Interest and fiscal charges
2,667,947
2,667,947
2,667,861
86
2,893,986
Bond issue costs
_ 84,800
84,800
5,000
79,800
_ 4,200
Total Expenditures
8,602,747
8 6�747
8,522,861
_ 79,886
_8,748,186
Excess (Deficiency) of Revenues over Expenditures
732,253
732,253
811,648
(80,377)
(750,554)
OTHER FINANCING SOURCES (USES)
Transfers in
-
_ -
104.407
104,407
3
Total Other Financing Sources (Uses)
-
-
104.407
104,407
3
NET CHANGE IN FUND BALANCE
732,253
732,253
916,055
183,802
(750,551)
FUND BALANCE - BEGINNING
1,113,858
1,113,858
1,113,858
-
_ 1,864,409
FUND BALANCE - ENDING
$ 1,846,111
1,846,111
$ 2,029,913
$ 183,802
$ 1,113,858
72
CITY OF SCHERTZ, TEXAS
COMPARATIVE BALANCE SHEETS
CAPITAL PROJECTS FUND
SEPTEMBER 30, 2024
(WITH COMPARATIVE TOTALS FOR 2023)
ASSETS
Cash and cash equivalents
Total Assets
LIABILITIES
Accounts payable
Retainage payable
Total Liabilities
FUND BALANCES
Restricted for:
Capital improvement
Committed for:
Capital projects
Total Fund Balances
Total Liabilities and Fund Balance
73
2024
2023
41,622,628 23,012,099
41,622,628 23,012,099
78,995
78,995
37,654,911
253,110
5,807
258.917
19, 318, 324
3,888,722 3,434,85
419543,633 22, 753,182
$ 41, 622, 628 23, 012, 099
CITY OF SCHERTZ, TEXAS
COMPARATIVE SCHEDULES OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
CAPITAL PROJECTS FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2024
(WITH COMPARTIVE TOTALS FOR THE YEAR ENDED 2023)
REVENUES
Intergovernmental
Investment earnings
Total Revenues
EXPENDITURES
Capital outlay
Debt service:
Bond issue costs
Total Expenditures
Excess (Deficiency) of Revenues Over Expenditures
OTHER FINANCING SOURCES (USES)
Issuance of debt
Premium on issuance of debt
Transfers in
Transfers out
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCE
FUND BALANCES - BEGINNING
FUND BALANCES - ENDING
74
2024 2023
$ - $ 201,621
1,379, 778 _ 1, 601, 296
1,379,778 1,802,917
2,497,812 21,307,128
163,613 -
2,661,425 21307128
(1,281,647)
19,165,000
998,613
12,892
(104.407
20,072,098
18,790,451
_22,753,182
41,543,633
(19,504,211)
850,880
L3]
850,877
(18,653,334)
41,406,516
2-2, 753,182
CITY OF SCHERTZ, TEXAS
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2024
Special Revenue Funds
Hotel
Occupancy
Park
Tree
Treasury
Fund
Fund
Mitigation
Forfeitures
ASSETS
Cash and cash equivalents
$ 3,339,848 $
542,123
$ 1,238,872
$ 201,329
Accounts receivable, net of allowance
100,010
-
-
-
Total Assets
3,439,858
542,123
1,238,872
201,329
LIABILITIES
Accounts payable - - 3,500 -
Due to other funds - - - -
Total Liabilities - - 3,500 -
FUND BALANCES
Restricted for:
Tourism development 3,439,858 - - -
Parks and tree mitigation - 542,123 1,235,372 -
Police forfeiture - - - 201,329
Roadways - - - -
Historical Committee and library - - - -
Unassigned - - - -
Total Fund Balances 3,439,858 542,123 1,235,372 _ 201,329
Total Liabilities and Fund Balances $ 3 439,858 1 _ 5421123 $ 1,238,872 201,329
75
Capital
Special Revenue Funds Projects Fund
Library Historical Capital Total Nonmajor
Justice State Grant Advisory Committee Recovery Governmental
Forfeitures Forfeitures Fund Board Fund Roadways Funds
$ 230,722 $ 79,027 $ 377,859 $ 75,962 $ 26,868 $ 4,654,797 $ 10,767,407
- - - - - - _ 100,010
230,722 79,027 377,859 75,962 26,868 4,654,797 _ 10,867,417
- - - 1,437 - 4,937
644,353 - - - 644,353
- 644,353 - 1,437 - 649,290
- - - 3,439,858
- - - - - - 1,777,495
230,722 79,027 - - - - 511,078
- - - - - 4,654,797 4,654,797
- 75,962 25,431 - 101,393
- - {266,494j - - - (266,494)
230,722 79,027 (266,494) 75j962 25,431 4,654,797 10,218,127
$ 230,722 $ 79;.027 $ 377,859 $_ 754962 $ 26,868 $ 4,654,797 $ 10,867,417
76
CITY OF SCHERTZ, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2024
Special Revenue Funds
Hotel
Occupancy
Park
Tree
Treasury
Fund
Fund
Mitigation
Forfeiture
REVENUES
Occupancy tax
$ 849,265
$ -
$ -
$ -
Permits and fees
-
446,138
555,380
-
Service fees
-
-
-
_
Fines and fees
-
-
-
195,925
Intergovernmental
-
-
-
_
Investment earnings
154,833
8,975
62,728
-
Miscellaneous
-
-
-
_
Total Revenues
1,00�
455,113
618,108
195,925
EXPENDITURES
Current:
General government
52,318
-
-
-
Public safety
-
-
-
_
Public environment
-
-
81,429
-
Cultural
-
-
_
_
Administration
80,265
-
-
-
Capital outlay
48,071
-
-
_
Total Expenditures
180,654
-
81,429
-
NET CHANGE IN FUND BALANCES
823,444
455,113
536,679
195,925
FUND BALANCES - BEGINNING
2,616,414
87,010
698,693
5,404
FUND BALANCES - ENDING
$ 3,439,858
$ 542,123
$ 1,235,372.
201,329
77
Capital
Special Revenue Funds
Pro_ iects Fund
Library
Historical
Capital
Total Nonmajor
Justice
State Grant
Advisory
Committee
Recovery
Governmental
Forfeitures
Forfeitures Fund
Board
Fund
Roadways
Funds
$ -
$ - $ - $
-
$ -
$ -
$ 849,265
-
- -
-
-
-
1,001,518
-
- -
19,008
215
1,483,039
1,502,262
23,519
4,707 -
-
-
-
224,151
-
- 378,480
-
-
-
378,480
11,312
- -
4,115
-
217,401
459,364
-
- -
69
-
-
69
- 34,831
4,707 378,480
23,192
215
1,700,440
_ 4,415,109
- - - - 4,217 - 56,535
43,544 - - - - - 43,544
- - - - - - 81,429
- - - 16,880 - - 16,880
- - - 80,265
- - - 6,585 - 57,305 _ 111,961
43,544 - - 23,465 4,217 _ 57,305 390,614
(8,713 4` _ 378,480 _(273] (4,002) 1,643,135 4` 0�
239,435 74,320 (644,974) 76,235 _ 29,433 3,011,662 6,193,632
$_ 230,722 $ 791027 $ (266,494) $ 75,962 $_ _25,431 $ 4,654,797 10,218,127
78
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
HOTEL OCCUPANCY FUND
REVENUES
Occupancy tax
Investment earnings
Total Revenues
EXPENDITURES
Current:
General government
Administration
Capital outlay
Total Expenditures
FOR THE YEAR ENDED SEPTEMBER 30, 2024
(WITH COMPARATIVE ACTUAL TOTALS FOR 2023)
Variance With
2024
Final Budget
2023
Original
Final
Actual
Positive
Actual
Bud•,,et
Budget
Amounts
(Negative_
Amounts
$ 800,000
$ 800,000
$ 849,265
$ 49,265
$ 1,059,808
101,500
101,500
154,833
53,333
92 ,825
901,500
901,500
1,004,098.
102,598
1,152,633
180,600 137,600 52,318 85,282 107,656
80,265 80,265 80,265 - 69,915
- 43,000 48,071 (5,M) 5,266
260,865 260{865 180,654 80,211 182,837
NET CHANGE IN FUND BALANCE 640,635 640,635 _ 823.444 182,809 969,796
FUND BALANCE - BEGINNING 2,616,414 2.616,414 2.616.414 - 1` 646`
FUND BALANCE -ENDING $ 3,257,049 L 3,257,049 3,439,858 $ 182,809 $ 2,616,414
r2
79
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
PARK FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2024
(WITH COMPARATIVE ACTUAL TOTALS FOR 2023)
Variance With
2024
Final Budget
2023
Original
Final
Actual
Positive
Actual
Budget
Buds.-iet
Amounts
(Negative)
Amounts
REVENUES
Licenses and permits
$ 100,000
$ 100,000
$ 446,138
$ 346,138
$ 203,500
Investment earnings
-
-
8,975
8,975
9,057
Total Revenues
100,000
100,000
455,113
355,113
212,557
EXPENDITURES
Capital outlay
100,000
100,000
-
100,000
387,068
Total Expenditures
100;000
100,000
-
100,000
387,068
NET CHANGE IN FUND BALANCE
-
-
455.113
255;113
_ (174,511)
FUND BALANCE - BEGINNING
FUND BALANCE - ENDING
87,010 87,010 87,010 - 261,521
87,010 $ 87,010 ;�-_ 542,123 $ 455,113 $ 87,010
80
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, 2024
(WITH COMPARATIVE ACTUAL TOTALS FOR 2023)
Variance With
2024
Final Budget
2023
Original
Final
Actual
Positive
Actual
Budget
Budget
Amounts
(Negative)
Amounts
REVENUES
Licenses and permits
$ 50,000
$ 50,000
$ 555,380
$ 505,380
$ 48,065
Investment earnings
35,750
35,750
62,728
26,978
35,600
Total Revenues
85,750
85,750
618,108
532,358
83,665
EXPENDITURES
Current:
Parks and recreation 75,000 75,000 81,429 (6,429) _93,032
Total Expenditures 75,000 75,000 81,429 (6,429) 93,.032
NET CHANGE IN FUND BALANCE
10,750
10,750
536,679 525.929
(9,367}
FUND BALANCE - BEGINNING
698,693
698,693
698,693 i
708,060
_
FUND BALANCE - ENDING
$ 709,443
709,443
$ 1,235,372 $ 525,929
$ 698,693
81
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
TREASURY FORFEITURES FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2024
(WITH COMPARATIVE TOTALS FOR 2023)
REVENUES
Fines and fees
Total Revenues
EXPENDITURES
Total Expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING
FUND BALANCE - ENDING
82
2024
195,925
195.925
195,925
5,404
2023
5,404
- _ 201,329 $ 5,404
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
JUSTICE FORFEITURES FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2024
(WITH COMPARATIVE TOTALS FOR 2023)
REVENUES
Fines and fees
Investment earnings
Total Revenues
EXPENDITURES
Current:
Public safety
Total Expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING
FUND BALANCE - ENDING
83
2024
$ 23,519
11,312
34,831
2023
$ 141,539
8,305
149.844
43,544
44,982
43,544
44,982
(8,71a
104.862
2391435
134,573
230,722
$ 239,435
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
STATE FORFEITURES FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2024
(WITH COMPARATIVE TOTALS FOR 2023)
REVENUES
Fines and fees
Total Revenues
EXPENDITURES
Total Expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING
FUND BALANCE - ENDING
84
2024
2023
4,707 69,541
4,707 69,541
4,707 69,541
74,320 4.779
$ 79,027 74,320
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, 2024
(WITH COMPARATIVE ACTUAL TOTALS FOR 2023)
Variance With
2024
Final Budget
2023
Original
Final
Actual
Positive
Actual
Bud. -!et
Bud_iet
Amounts
(Ne,rative)
Amounts
REVENUES
Service fees
$ 20,000
$ 20,000
$ 19,008
$ (992)
$ 20,318
Investment earnings
1,200
1,200
4,115
2,915
3,463
Miscellaneous
-
-
69
69
8
Total Revenues
21,200
21.200
23,192
1.992
23,789
EXPENDITURES
Current:
Cultural
22,200
22,200
16,880
5,320
17,123
Capital outlay
7,000
7 000
6,585
415
-
Total Expenditures
29,200
29,200
23,465
5,735
17,123
NET CHANGE IN FUND BALANCE
(8,000)
_ (8,000}
(2731
7,727
_ 6,666
FUND BALANCE - BEGINNING
76,235
76,235
76,235
-
69,569
_
FUND BALANCE - ENDING
$ 681235
$ 68,235
$ 75,962
$ 7,727
$ 76C235
85
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, 2024
(WITH COMPARATIVE ACTUAL TOTALS FOR 2023)
REVENUES
Sale of merchandise
Miscellaneous
Total Revenues
EXPENDITURES
Current:
General government
Total Expenditures
Excess of Revenues Over Expenditures
OTHER FINANCING SOURCES (USES)
Variance With
2024
Final Budget
2023
Original
Final
Actual
Positive
Actual
Budget
Budget
Amounts
(Negative)
Amounts
$ 1,000
$ 1,000
$ 215
$ (785)
$ 199
-
-
-
-
2,244
1,000
1,000
215
(785)
2,443
9,250
9,250
4,217
5,033
_ 9,159
9,250
9,250
4,217
_ 5,033
_ 9,159
(8,250) (8,250) (4,002) 4,248 {6,716)
Transfers in
_ 10,750
10,750
- (10,750)
9,161
Total Other Financing Sources (Uses)
10,750
10,750
- (10,750)
9,161
NET CHANGE IN FUND BALANCE
2,500
2,500
(4,002} (6,502)
2,445
FUND BALANCE - BEGINNING
29,433
_ 29,433
29,433 -
26,988
FUND BALANCE - ENDING
31,933
$ 31,933
$ 25631 $ (6,502)
29,433
86
REVENUES
Service fees
Investment earnings
Total Revenues
EXPENDITURES
Capital outlay
Total Expenditures
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING
FUND BALANCE - ENDING
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
CAPITAL RECOVERY ROADWAYS
FOR THE YEAR ENDED SEPTEMBER 30, 2024
(WITH COMPARATIVE TOTALS FOR 2023)
87
2024
$ 1,483,039
217,401
1,700,440
57,305
57,305
2023
$ 661,078
133,917
794,995
342,687
342.687
1,643,135 452,308
3,011,662 29559,3S4
4,654,797, 3,011,662
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. 88 - 97
Revenue Capacity
These schedules contain information to help the reader assess the
City's most significant local revenue sources. 98 - 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 - 113
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. 114 - 115
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. 116 - 123
CITY OF SCHERTZ, TEXAS
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(UNAUDITED)
Fiscal Year
2015
2016
2017
2018
Governmental activities
Net investment in capital assets
$ 68,125,738
$ 74,237,004
$ 84,537,238
$ 89,266,885
Restricted
13,343,280
17,095,325
20,437,116
23,391,047
Unrestricted
1,640,519
2,231,341
1,673,567
2,351,_236
Total Governmental Activities Net
Position
$ 83,109,537
$ 93,563,670
106,647,921
$ 115,009,168
Business -type activities
Net investment in capital assets
$ 59,625,205
$ 64,210,231
$ 70,361,035
$ 64,871,629
Restricted
-
-
10,565,463
12,626,526
Unrestricted
14,243.922
15,737,470
20,781,291
201870,671
Total Business -Type Activities Net
Position 73,869,127 $ 79,947,701 $ 101,707,789 1 98,368 826
Primary government
Net investment in capital assets
$ 127,750,943
$ 138,447,235
$ 154,898,273
$ 154,138,514
Restricted
13,343,280
17,095,325
20,437,116
23,391,047
Unrestricted
15,884,441
17,968,811
22,454,858
35,848 433
Total Primary Government Net
Position
$ 156,978,664
$ 173,511,371
$ 197,790,247
$ 213,377,994
88
TABLE 1
Fiscal Year
2019
2020
2021
2022
2023
2024
$ 89,869,766
$ 88,959,102
$ 98,444,714
$ 109,746,340
$ 136,442,093
$ 142,891,901
28,088,355
28,664,438
28,342,438
32,745,688
40,311,118
50,212,797
2,920,717
4,157,801
10,744,127
11,055,015
7,768,985
7,191,430
$ 120,878,838
$ 121,7819341
$ 137,531,279
$ 153,547,043
S 184,522,196
200,296,128
$ 68,271,075 $ 75,969,319 $ 83,941,882 $ 94,997,863 $ 114,831,425 $ 125,867,091
13,232,638 15,071,599 5,408,320 5,408,320 6,640,756 6,640,756
33,254,008 30,570,717 39,406,798 42,791,680 39,140,966 41,033,805
$ 114,757,721 $ 121,611,635 $ 128,757,000 $ 143,197,863 $ 160,613,147 $1173,541,652
$ 158,140,841
$ 164,928,421
$ 182,386,596
$ 204,744,203
$ 251,273,518
$ 268,758,992
41,320,993
43,736,037
33,750,758
38,154,008
46,951,874
56,853,553
36,174,725
34,728,518
50,150,925
53,846,695
46,909,951
48,225,235
$ 235,636,559
$ 243,392,976
$ 266,288,279
$ 296,744,906
5 345,135,343 343
373,837r780
89
CITY OF SCHERTZ, TEXAS
CHANGE IN NET POSITION
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(UNAUDITED)
Fiscal Year
2015 2016 2017 2018
Expenses
Governmental activities:
General government
$ 6,443,227
Public safety
10,836,712
Public environment
3,876,644
Parks and recreation
2,164,604
Cultural
892,194
Health
470,468
Administration
1,845,877
Interest and other fees
2,226,635
Total Governmental Activities Expenses
28,756,361
$ 6,557,778
$ 6,253,926 $
7,421,918
12,141,968
13,061,120
13,899,278
4,147,653
4,460,540
4,930,723
2,034,964
2,859,974
2,707,292
954,871
1,004,747
1,042,085
570,204
776,494
724,780
1,954,276
3,052,102
3,067,983
2,240,783
2,355,714
2,125,687
30_ 09602,497
33,824,617
35,919,746
Business -type activities:
Water and sewer
18,440,959
20,269,111
21,346,078
23,579,854
EMS
4,719,526
5,004,110
6,006,178
6,1104407
Total Business -Type Activities Expenses
23,160,485
25,273,221
27,352,256
29,690,261
Total Primary Government Expenses
51,916,846
55,875,718
61,176,873
65,610,007
Program Revenues
Governmental activities:
Charges for services:
General government
Public safety
Public environment
Parks and recreation
Cultural
Health
Operating grants and contributions
Capital grants and contributions
Total Governmental
Activities Program Revenues
Business -type activities:
Charges for services:
Water and sewer
EMS
Capital grants and contributions
Total Business -Type Activities
Program Revenues
Total Primary Government
Program Revenues
1,840,547
1,507,252
874,737
1,013,698
2,603,476
2,415,537
4,131,548
4,104,911
794,003
788,727
544,460
640,231
325,178
326,079
330,412
313,668
26,744
30,308
29,742
27,930
336,252
342,485
552,878
776,942
5,509,530
6,227,664
10,043,483
4,744,489
11,435,730
11,638,052
16,507,260
11,621,869
20,700,369
22,003,794
25,390,713
27,099,237
4,415,126
5,921,223
6,366,894
6,092,559
4,158, 552
2,831,126
6,111, 474
3,132,348
29,274,047
30, 756,143
37,869, 081
36,324,144
40,709, 777
42, 394,195
544376,341
47, 946, 013
Net (expense) revenue:
Governmental activities (17,320,631) (18,964,445) (17,317,357) (24,297,877)
Business -type activities 6,113,562 5,482,922 _10,516,825 6,633,883
Total Primary Government Net Expense $ (11,207,069) $ (13,481,523) $ (6,800,532) $ (17,663,994)
90
TABLE 2
Fiscal Year
2019 2020 2021 2022 2023 2024
$ 6,534,013 $
10,310,363 $
7,298,193 $
7,093,652 $
8,244,956 $
8,678,145
15,448,886
16,575,191
19,008,871
19,580,703
22,195,399
22,719,864
5,495,192
8,825,099
5,364,408
8,545,834
6,188,351
8,802,846
3,022,278
3,012,134
3,395,458
3,543,978
4,253,278
5,539,108
1,119,650
1,089,564
1,087,975
1,168,815
1,380,793
1,520,759
516,890
596,288
-
-
-
-
3,853,255
3,419,407
4,360,229
4,455,947
5,363,700
6,343,146
_ 2,196,180 _
2,028,065
1,797,520
2,490,474
2,555,917
2,508,098
38,186,344 _
45,856,111
42,312,654
46,879,403
50,182,394
56,111,966
25,608,390
24,349,219
25,280,964
27,833,986
30,088,159
32,088,184
6,529,631
6,051,296
7,784,670
84234,500
10,176,945
11,718,474
32,138,021
30,400,515
33,065,634
36,068,486
40,265,104
43,806,658
70,324,365
76,256,626
75,378,288
82,947,889
90,447,498
99,918,624
947,538
836,246
651,211
686,470
470,879
418,302
3,177,329
3,276,129
3,079,945
3,922,957
4,067,387
4,068,931
138,920
850,201
902,712
798,955
661,078
2,038,419
484,495
331,174
528,886
652,727
753,302
932,437
311,575
299,944
285,792
310,859
315,222
324,597
21,101
26,304
-
-
-
-
692,042
2,113,673
1,925,939
3,970,029
2,425,937
3,579,794
1,319,793
531,096
7,959,576
6,987,788
18,456,911
3,293,373
7,092,793
8,264,767
15,334,061
17,329,785
27,150,716
14,655,853
27,333,475
29,709,279
27,724,929
30,677,566
31,589,783
32,562,394
6,596,618
6,114,891
7,709,027
9,420,909
9,503,821
10,231,081
1,975,524
292,408
6,935,191
6,143,957
14,180,619
8,431,343
35,905,617
36,116,578
42,369,147
46,242,432
55,274,223
51,224,818
42,998,410
44,381,345
57,703,208
63,572,217
82,424,939
65,880,671
(31,093,551)
(37,591,344)
(26,978,593)
(29,549,618)
(23,031,678)
(41,456,113)
3,767,596
5,716,063
9,303,513
10,173,946
15,009,119
7,418,160
$ (27,325,955)
$ (31,875,281)
(17,675,080)
$ (19,375,672)
$ (8,022,552)
$ (34,037,953)
91
CITY OF SCHERTZ, TEXAS
CHANGE IN NET POSITION
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(UNAUDITED)
Fiscal Year
2015
2016
2017
2018
General Revenues and
Other Changes in Net Position
Governmental activities:
Taxes
Ad valorem
$ 14,139,037
$ 15,131,997
$ 16,166,006
$ 17,018,950
Sales
10,315,125
10,921,489
10,844,503
12,668,555
Franchise fees
2,263,783
2,250,815
2,208,373
2,393,182
Hotel/motel
563,734
544,871
499,466
520,424
Mixed drink
43,656
43,073
42,699
43,395
Investment income
56,820
187,847
448,408
909,985
Miscellaneous
197,881
309,275
182,754
283,496
Transfers
(42,235)
29,211
9,399
19,186
Total Governmental Activities
27,537,801
29,418,578
30,401,608
33,857,173
Business -type activities:
Interest and investment earnings
47,728
102,642
211,466
532,367
Miscellaneous
344,731
522,221
475,733
453,374
Transfers
42,235
(29,211)
(9,399)
(19,186)
Total Business -Type Activities
434,694
595,652
_ 677,800
966,555
Total Primary Government
27�495
30,0144230
31,079,408
34,823,728
Change in Net Position
Governmental activities
10,217,170
10,454,133
13,084,251
9,559,296
Business -type activities
6,548,256
6,078,574
11,194,625
7,600,438
Total Primary Government
. 16,765,426
$ 16,532,707
$24,278,876
$17,159,734
Source: City financial statements
92
TABLE 2
Fiscal Year
2019 2020 2021 2022 2023 2024
$ 19,151,005 $
19,844,912
$ 21,463,804
$ 22,495,628
$ 25,118,429
$ 27,147,745
12,506,879
14,432,152
16,838,731
18,075,733
19,646,841
20,095,955
2,357,150
2,305,225
2,305,108
2,574,041
2,593,660
2,354,657
514,679
268,946
518,921
804,132
1,059,808
849,265
60,518
70,139
68,730
83,391
88,347
93,524
1,470,258
804,674
104,613
709,898
4,678,690
5,569,055
984,257
767,779
1,408,270
1,138,775
820,465
1,119,844
(81,525)
-
-
(316,216)
-
-
36,963,221
38,493,827
42,708,177
45,565,.382
54,006,240
57,230,045
855,216
431,555
68,354
314,546
1,927,277
4,535,559
267,788
706,296
754,268
675,739
479,479
974,786
81,525
-
-
316,216
-
-
1,204,529
1,137,851
822,622
1,306,501
2,406,756
5,510,345
38,167,750
39,631,678
43,530,799
46 871,883
56,412j996
62,740,390
5,869,670
902,503
15,729,584
16,015,764
30,975,153
15,773,932
4,972,125
6,8531914
10,126,135
11,480,447
17,415,284
12,928,505
10,841 795 $
7,756,417
25 855 719
$ 27,496,211
$ 48,390,437
$ 28,702,437
93
CITY OF SCHERTZ, TEXAS
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(UNAUDITED)
Fiscal Year
2015
2016
2017
2018
General fund
Non -spendable
$ 117,084
$ 220,503 $
98,263
$ 94,876
Restricted
1,748,374
1,929,636
1,994,905
2,027,125
Committed
-
-
-
_
Assigned
785,005
752,503
854,198
3,080,557
Unassigned
7,280,240
8,509,467 _
9.976.169
12,548,013
Total general fund
$ 9,930,703
$ 11,412,109 $
12,923,535
17,750,571
All other governmental funds
Restricted $ 21,191,968 $ 27,252,908 $ 35,721,031 $ 37,772,240
Committed - 342,519 454,376 454,376
Assigned 6,657 6,743 - -
Unassigned - - - -
Total all other governmental funds $ 21,198,625 $ 27,602,170 36,175,407 $_ 38,226,616
Source: Balance Sheets - Governmental Funds in City's ACFRs.
94
TABLE 3
Fiscal Year
2019
2020
2021
2022
2023
2024
$ 131,925 $
114,787 $
162,463 $
182,186
$ 342,248
$ 285,571
2,196,037
1,996,357
2,151,411
2,260,350
2,220,694
1,458,673
-
687,780
907,676
1,021,594
1,155,078
1,260,939
5,580,626
1,972,479
1,501,398
1,356,230
3,518,655
3,603,775
9,228,612
12,197, 575
11,755,619
12, 246, 539
12, 000, 941
11, 338, 745
$ 17,137,200 $
16,968,978 $
16,478,567 $
17,066,899
19,237,616
$_ 17k947,703
$ 39,009,399 $
32,024,252 $
33,329,710 $
69,222,391
$ 60,666,303
$ 91,307,033
687,779
4,071,942
7,985,798
5,543,146
3,888,722
3,888,722
-
(2,071,518)
(675,043)
(648,630)
(644,974)
(266,494)
39,697,178 $
34,024,676 $
40,640,465 5
74,116,907
$ 63,910,051
1 94,929,261
95
CITY OF SCHERTZ, TEXAS
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(UNAUDITED)
Fiscal Year
2015
2016
2017
2018
Revenues
Taxes
$ 27,348,297
$ 28,865,727
$ 29,720,578
$ 32,632,702
Permits and fees
1,731,302
1,493,336
2,540,045
2,557,056
Service fees
1,797,151
1,789,321
2,132,299
2,159,193
Fines and fees
1,534,588
1,441,474
1,217,621
1,049,989
Intergovernmental
393,607
401,494
397,073
609,131
Other revenue
689,805
1,741,436
1,897,153
1,761,285
Total Revenues
33,494,750
35,732,788
37,904,769
40,769,356
Expenditures
Current:
General government
5,582,441
5,657,998
5,394,918
6,327,133
Public safety
10,158,401
11,048,767
11,870,636
12,728,222
Public environment
952,663
1,007,326
1,128,979
1,136,052
Parks and recreation
1,658,197
1,528,356
1,885,915
1,697,872
Cultural
821,146
869,162
921,870
955,153
Health
404,008
480,175
672,934
628,054
Administration
2,056,646
2,015,573
2,912,855
3,015,239
Capital outlay
2,314,668
10,192,398
5,492,196
7,708,625
Debt service:
Principal
3,918,008
4,040,975
4,473,174
4,744,116
Interest and fiscal charges
2,112,746
1,896,911
2,113,679
2,099,190
Bond issue costs
7,992
449,358
214,280
129,417
Payment to refund agent
-
-
-
-
Total Expenditures
29,986,916
39 186 999
37,081,436
41,169,073
Excess of Revenues Over (Under)
Expenditures
3,507,834
(3,454,211)
823,333
(399,717)
Other Financing Sources (Uses)
Bond & debt issuances
245,000
10,750,000
8,870,000
4,887,829
Refunding bond issuance
-
4,185,000
-
6,035,000
Premium (discount) on bond issue
-
590,432
381,931
269,212
Payment to refund agent
-
(4,215,482)
-
(6,159,623)
Transfer in
989,120
863,583
438,803
777,487
Transfer out
(1,031,355)
834371
(429,404)
_(758,302)
Net Other Financing Sources (Uses)
202,765
119339,162
9,261,330
5,051,603
Net Change in Fund Balances
$ 3,710,599
$ 7,884,951
$ 10,0K663
4,651,886
Debt Service as a Percentage of
Noncapital Expenditures
21.3%
20.5%
20.4%
22.2%
Source: Statement of Revenues, Expenditures, and Changes in Fund Balance for Governmental Funds.
i Z-1
TABLE 4
Fiscal Year
2019
2020
2021
2022
2023
2024
$ 34,590,008
$ 36,802,913
$ 41,150,087
$ 43,905,170 $
48,455,688
$ 50,506,759
1,635,461
1,807,264
1,812,895
2,341,493
2,329,324
3,628,888
2,070,293
2,583,598
2,540,995
2,953,707
2,806,284
3,842,031
953,614
880,657
643,482
754,558
659,885
590,974
1,057,681
951,604
4,582,874
4,247,523
3,061,631
4,013,661
2,454,515
1,572,473
1,512,883
1,848,673
5,499,155
6,688,899
42,761,572
44,598,509
52,243,216
56,051,124
62,811,967
69,271,212
5,881,647
10,364,369
6,580,915
6,515,632
7,324,976
7,547,457
13,985,443
15,366,593
18,107,418
19,098,373
19,579,764
23,408,875
1,112,041
1,270,894
1,382,185
1,766,558
1,782,809
2,599,441
2,393,487
2,102,083
2,534,679
2,659,914
3,227,365
4,161,603
1,018,109
1,044,891
1,059,984
1,159,024
1,294,948
1,446,286
498,871
589,616
-
-
-
-
3,795,233
3,353,634
4,459,223
4,597,488
5,202,419
6,326,196
9,083,572
9,276,886
5,215,256
13,096,740
24,142,094
5,075,332
4,565,000
4,929,544
4,955,000
4,805,000
5,850,000
5,850,000
2,069,215
2,136,523
1,801,467
1,779,157
2,893,986
2,667,861
189,082
4,200
140,140
558,911
4,200
168,613
5,489,912
-
-
-
-
-
50,081,612
50,439,.233
46 236 267
56,036,797
71,302,561
59,251,664
(7,320,040)
(5,840,724)
6,006,949
14,327
(8,490,594)
10,019,548
4,620,000
-
136,535
31,540,000
-
19,165,000
5,225,000
-
7,555,000
4,070,000
-
-
640,115
-
629,992
3,200,544
-
998,613
-
-
(8,223,452)
(4,443,881)
-
-
120,503
4,500,169
6,395,386
3,339,565
869,840
402,538
(202,028)
(4,500,169)
(6,375,032)
(3,655,781)
(869,249)
(402,538)
10,403,590
-
118,429
34,050,447
591
20,163,613
$ _ 3,083,550
$ (5,840,724)
$ 6,125,378
$ 34,064,774
8 490 003
$ 30,183,161
17.3%
16.2%
19.9%
17.1%
30.3%
17.6%
97
CITY OF SCHERTZ, TEXAS
Fiscal
Year
GOVERNMENTAL FUNDS TAX REVENUES BY SOURCE
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(UNAUDITED)
Property
Tax
Sales & Use
Tax
Franchise
Tax
Mixed
Beverage
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
2024
27,122,341
20,095,955
2,354,657
93,524
98
Bin-;o
Hotel
Occupancy
103
$ 563,734
1
544,870
31
499,466
11
520,424
24
514,679
24
268,946
24
518,921
24
804,132
-
1,059,808
-
849,265
Total
27,348,297
28,865,727
29,720,578
32,632,704
34,590,032
36,802,937
41,150,111
43,905,194
48,455,688
50,515,742
99
TABLE 5
Fiscal
Year
Ended
September 30,
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
CITY OF SCHERTZ, TEXAS
TOTAL WATER AND SEWER CONSUMPTION AND RATES
LAST TEN FISCAL YEARS
Total Water &
Sewer Consumption
[In Gallons].
2,425,608,700
2,363,742,000
1,700,418,300
1,629,336,300
1,982,664,200
1,622,930,500
1, 583, 312,400
1,583,462,300
1,509,250,000
1,472,948,300
*Source: Schertz Utility System
100
Water &
Sewer
Base Rate
42.35
40.85
39.04
38.15
38.15
37.15
35.61
34.35
30.11
26.54
TABLE 6
Water & Sewer
Initial Rate Per
1,000 Gallons
8.41
8.13
7.79
6.97
6.97
6.84
6.53
6.21
5.73
5.43
TAXPAYERS
City of Cibolo
WHC Schertz Apts, LLC
Ranger Excavating
Crossvine Master Community
Sycamore Creek Apartments
Comal ISD School
Pecan Grove TxLLC
Homestead Residential Master
Caterpillar Inc
Schertz 1518
Beck Readymix
SYSCO
Big Time Management Properties
Sebastian Apartments
City of Schertz (Ball Park)
Caterpillar Inc
CITY OF SCHERTZ, TEXAS
PRINCIPAL WATER AND SEWER CONSUMERS
LAST TEN FISCAL YEARS
2024 2015
Total
Percentage of
Total
Water
Total City
Water
Consumption
Water
Consumption
(In Gallons)
Rank
Consumption
(In Gallons)
Rank
15,596,800
1
0.64%
14,016,600
2
0.47%
11,362,000
3
0.45%
10,860,900
4
0.39%
9,379,300
5
0.33%
9,908,400
4
8,121,500
8
0.33%
8,072,100
9
0.33%
7,717,900
8
7,712,300
10
0.32%
15,705,500
1
11,373,500
2
9,916,200
3
8,754,100
5
8,497,800
6
8,002,100
7
7,271,400
9
6,426,400
10
TOTAL 85,121, 500
Total City Water Consumption 2,425,608,700
*Source: Schertz Utility System
101
3.27% 93,573,300
1,552,387,300
TABLE 7
Percentage of
Total City
Water
0.50%
0.00%
1.01%
0.73%
0.64%
0.56%
0.55%
0.52%
0.47%
0.41%
5.39%
CITY OF SCHERTZ, TEXAS
DIRECT AND OVERLAPPING PROPERTY TAX RATES
LAST TEN FISCAL YEARS
(UNAUDITED)
City Direct Rates
Fiscal
Basic
Debt
Year
Rate
Service
Total
2024
0.3324
0.1548
0.4872
2023
0.3470
0.1480
0.4950
2022
0.3517
0.1604
0.5121
2021
0.3470
0.1651
0.5121
2020
0.3496
0.1650
0.5146
2019
0.3497
0.1649
0.5146
2018
0.3248
0.1662
0.4910
2017
0.3168
0.1743
0.4911
2016
0.3159
0.1752
0.4911
2015
0.3164
0.1810
0.4974
Overlapping School Districts
Schertz-
Cibolo-
Universal
Comal
City ISD
ISD
1.1392
1.2746
1.3246
1.2746
1.3950
1.2920
1.4106
1.2757
1.4200
1.3200
1.4900
1.3200
1.4900
1.3900
1.4700
1.3900
1.4900
1.3900
1.4900
1.3900
Overlapping Counties
Bexar
Fiscal
Bexar
Hospital
Year
County
District
2024
0.2763
0.2762
2023
0.2624
0.2762
2022
0.2763
0.2762
2021
0.2624
0.2762
2020
0.2774
0.2762
2019
0.2774
0.2762
2018
0.2928
0.2762
2017
0.2928
0.2762
2016
0.2929
0.2762
2015
0.2929
0.2762
TABLE 8
Community
River
College
Comal
Guadalupe
Authority
District
County _
County
0.0184
0.1492
0.2262
0.2731
0.0184
0.1492
0.2847
0.3439
0.0186
0.1492
0.3140
0.3799
0.0186
0.1492
0.3224
0.3854
0.0186
0.1492
0.3224
0.3319
0.0186
0.1492
0.2952
0.3319
0.0173
0.1492
0.3078
0.3799
0.0173
0.1492
0.2928
0.3851
0.0173
0.1492
0.2929
0.3851
0.0178
0.1492
0.2929
0.3941
*Source: Guadalupe, Bexar, and Comal Appraisal Districts
102
CITY OF SCHERTZ, TEXAS TABLE 9
PRINCIPAL PROPERTY OF TAX PAYERS
CURRENT YEAR AND NINE YEARS AGO
2024
2015
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 $
156,322,530
1
2.32% $
100,587,449
2
3.31%
Sun Life Assurance Company of Canada
112,840,728
2
1.67%
Caterpillar Inc.
106,594,902
3
1.58%
157,733,450
1
5.19%
Amazon Com Services Inc
80,229,218
4
1.19%
Rebublic Beverage Company
68,123,480
5
1.01%
48,082,040
3
1.58%
HGIT Schertz Parkway LP
61,550,582
6
0.91%
Eastgroup Properties LP
43,686,637
7
0.65%
WHC Schertz Apts LLC
35,174,800
8
0.52%
DG Industrial Portfolio II Property Owner LF
32,374,472
9
0.48%
AR AMZ 1150 Schwab RD LLC
28,910,120
10
0.43%
San Antonio MTA LP
23,253,974
4
0.77%
GE Oil & Gas Inc.
19,500,000
5
0.64%
Visionary Properties
18,058,140
6
0.59%
Wal-Mart Real Estate Business Trust
12,459,300
7
0.41%
H.E.Butt Grocery Co.
11,301,240
8
0.37%
EM Limited Partnership
9,875,405
9
0.33%
Case Cameron LLC
5,878,860
10
0.19%
Totals $
725,807,469
10.77% $
406,729,858
13.39%
Total Taxable
Assessed Value $_ 6,740,344,392 $ 3,037,267,611
*Source: Guadalupe, Bexar, and Comal Appraisal Districts
103
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CITY OF SCHERTZ, TEXAS
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(UNAUDITED)
Collected Within
Fiscal Year
Taxes Levied
Fiscal Year
of Lev
Ended
for the
% of
September 30,
Fiscal Year
Amount
Levy
2024
$ 28,354,039
$ 28,023,427
98.83%
2023
26,144,518
25,757,953
98.52%
2022
22,951,478
22,775,565
99.23%
2021
22,011,090
21,787,625
98.98%
2020
20,854,329
20,758,493
99.54%
2019
19,922,568
19,825,244
99.51%
2018
18,010,824
17,899,825
99.38%
2017
17,356,822
17,241,556
99.34%
2016
16,238,180
16,160,248
99.52%
2015
14,793,867
14,738,760
99.63%
104
TABLE10
Total Collections
Collections In
To Date
Subsequent
% of
Years
Amount
_Levy
- $
28,023,427
98.83%
57,110
25,815,063
98.74%
110,107
22,885,672
99.71%
24,329
21,811,954
99.10%
82,648
20,841,141
99.94%
91,224
19,916,468
99.97%
74,732
17,974,557
99.80%
74,366
17,314,231
99.75%
59,084
16,218,083
99.88%
45,622
14,783,490
99.93%
CITY OF SCHERTZ, TEXAS
TAXABLE ASSESSED VALUE
LAST TEN FISCAL YEARS
(UNAUDITED)
Fiscal
Year Taxable
Ended Value Residential Commercial
September 30, January 1. Property Property
2024
2023
$ 4,664,462,438 $
2,345,387,513
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
*Taxable Assessed Value is before any applicable freeze adjustments.
Source: Bexar, Comal and Guadalupe County Appraisal Districts.
105
Tax -Exempt Other
Property Property
TABLE 11
Total Taxable Total
Assessed Direct
Value* Tax Rate
(386,038,551) $
222,037,649
$ 7,617,926,151 $
0.4872
(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
106
CITY OF SCHERTZ, TEXAS
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Governmental Activities
Business -Type Activities
General
Certificates
Certificates
Fiscal
Obligation
of
Tax
Financing
Revenue of
Year
Bonds
Obligation
Notes
Arrangement
Bonds Obligation
2024
$ 49,860,745
$ 44,612,349
$ -
$ 54,614
$ - $ 22,590,898
2023
54,504,618
25,983,440
-
81,921
- 23,529,237
2022
58,837,302
27,869,333
-
109,228
- 24,216,388
2021
40,390,000
14,200,000
155,000
136,535
- 10,655,000
2020
44,620,000
15,415,000
345,000
25,695
- 11,200,000
2019
48,320,000
16,235,000
530,000
25,699
- 12,330,000
2018
52,752,896
13,636,966
715,000
34,264
- 13,211,178
2017
56,613,614
9,011,415
1,230,000
25,147
- 8,174,779
2016
56,352,272
4,057,189
1,740,000
58,321
- 8,331,966
2015
53,410,128
277,801
1,210,000
91,495
- 8,946,153
107
Business -Type Activities
TABLE 12
General
Obligation
Bonds
Financing
Arrangement
Tax
Notes
Total
Primary
Government
Percent
of Gross
Income
Per
Capita
$ 3,263,722
$ 163,843
$ -
$ 120,546,171
6.73%
2,742
4,087,062
245,764
-
108,432,042
5.82%
2,521
5,111,592
327,685
-
116,471,528
5.24%
2,729
2,895,000
475,121
-
68,906,656
4.25%
1,628
3,685,000
134,662
150,000
75,575,357
4.50%
1,799
4,445,000
199,421
460,000
82,545,120
5.60%
1,932
2,127,657
289,553
765,000
83,532,514
5.98%
2,028
2,533,626
92,721
1,065,000
78,746,302
6.22%
1,996
3,014,595
162,262
1,360,000
75,076,605
6.39%
1,979
3,490,564
231,803
1,640,000
69,297,944
5.99%
1,830
108
CITY OF SCHERTZ, TEXAS
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
Fiscal
Year
General
Obligation
Bonds
General Bonded Debt Outstanding
Less:
Certificates Amounts
of Available for
Obligation Debt Service
Total
Percentage of
Actual Taxable
Value of
Property
Per
_ Capita
2024
$ 53,124,467
$ 67,203,247
$ (1,786,712) $
118,541,002
1.56%
$ 2,742
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%
2,683
2021
43,285,000
24,855,000
(934,899)
67,205,101
1.63%
1,587
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
109
Taxable
Population Assessed Value
43,239 $ 7,617,926,151
43,010
6, 740, 344, 392
42,673
4,205,887,894
42,337
4,306,840,068
42,000
4,152,459,607
41,948
3,900,769,022
41,182
3,647,504,903
39,453
3,375,850,131
37,938
3,037,267,611
37,865
2,752,562,574
110
TABLE 13
CITY OF SCHERTZ, TEXAS
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
Governmental Unit
Debt repaid with property taxes:
CURRENT YEAR
Estimated
Debt Percentage
Outstandinn Applicable*
TABLE 14
Estimated
Share of
Overlapping
Debt
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
City Governmental Activities Direct Debt
TOTAL NET OVERLAPPING DEBT
242,481,835
94, 527, 708
$ 337 009 543
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.
111
CITY OF SCHERTZ, TEXAS
DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
Assessed Value, 2023 Tax Roll
Debt Limit - Texas statues do not provide a legal debt
limit for cities; however, through accepted practice a
practical "economic" debt limit is considered to be 10%
of the assessed value.
Amount of Applicable Debt:
General Bonded Debt
Less Debt Service Net Position
Debt Margin
Total Net Debt as a Percentage
of Debt Margin
$ 6, 740, 344, 392
$ 674,034,439
$ 94,527,708
(867,965) 93,659,743
$ 580,374,696
16.14%
TABLE 15
Fiscal Year
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
3$ 53,134,898
$ 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
_ 66,329f699
Total Debt Margin
s 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
112
CITY OF SCHERTZ, TEXAS
PLEDGED REVENUE COVERAGE
LAST TEN FISCAL YEARS
TABLE 16
Water Revenue Bonds
Utility
Less:
Net
Debt Service
Fiscal
Service
Operating
Available
Year
Charges
Expenses
Revenue
Principal
Interest
Coverage
2024
$ 32,811,920
$ 31,257,030
$ 1,554,890
$ 1,630,000
$ 967,183
0.60
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
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.
113
CITY OF SCHERTZ, TEXAS TABLE 17
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
Education
Per Capita
Level in
Fiscal
Personal
Personal
Median
Years of
School
Unemployment
Year
Population
Income
Income
Age
Schooling
Enrollment
Rate
2024
43,239 $
1,790,872,902
$ 41,418
42.0
16.0
15,758
3.2%
2023
43,010
1,734,335,240
40,324
39.0
15.9
15,573
3.6%
2022
42,673
1,656,664,147
38,822
37.9
15.9
15,877
3.3%
2021
42,337
1,611,714,563
38,069
37.6
16.2
15,887
3.9%
2020
42,000
1,651,272,000
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%
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.
114
THIS PAGE LEFT BLANK INTENTIONALLY
CITY OF SCHERTZ, TEXAS
TOP TEN PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
TABLE 18
2024
2015
Percentage
Percentage
of Total City
of Total City
Employer
Employees
_Employment
Employees
Employment
Schertz-Cibolo-Universal City ISD
2,032
8.70%
1,810
10.46%
Amazon
800
3.43%
1,073
6.20%
Sysco Central Texas, Inc
800
3.43%
837
4.84%
FedEx Ground - Doerr Lane, Schertz
650
2.78%
Republic National Distributing Company
600
2.57%
382
2.21%
Brandt Companies
500
2.14%
437
2.53%
City of Schertz
480
2.06%
341
1.97%
Visionworks
403
1.73%
Hollingsworth Logistics Group
400
1.71%
H.E.B Grocery Co.
350
1.50%
350
2.02%
GE Oil & Gas
600
3.47%
Wal-mart Stores
323
1.87%
HVHC
400
2.31%
TOTAL
7,015
30.05%
6,553
37.88%
Source: City Economic Development Corporation
115
CITY OF SCHERTZ, TEXAS
FULL-TIME EQUIVALENT CITY GOVERNMENTAL EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
Function
General Government
City Manager
Municipal Court
Customer Relations
Planning and Zoning
General Services
City Secretary
Public Affairs
Records Management
Schertz Magazine
Engineer
GIS
Information Technology
Human Resources
Finance
Purchasing
Fleet Service
Building Maintenance
Facility Services
Public Safety
Police
Fire
Inspections
Marshal Services
Health
Animal Control
Environmental Health
Parks and Culture
Parks
Pools
Event Facilities
Library
Public Environment
Streets
Public Works
Public Works
Business Office
Water and Sewer
Drainage
EMS
Economic Development
TOTAL
Source: City Adopted Budgets
Full -Time Equivalent Emi--doyees as of September 30,
2015 2016 2017 2018
6
6
5
3
13
2
4
1
2
3
2
6
4
8
3
6
3
75
33
9
8
7
0A
1
14
14
6
10
16
8
37
328
116
5
6
5
4
2
4
1
2
7
2
6
5
8
3
6
16
78
36
8
8
8
3
9
1
14
14
4
10
16
6
39
4
5
6
5
4
2
4
1
2
7
2
7
5
8
3
6
16
81
39
8
5
8
3
10
1
14
14
4
10
16
6
41
5
6
5
4
2
5
7
2
8
5
8
3
6
17
86
45
11
7
4
12
1
15
14
4
10
19
8
45
368
TABLE 19
Full -Time Equivalent Employees as of September 30,
5
5
5
5
5
4
4
4
4
4
4
4
3
3
3
3
2.5
2.5
3
3
4
4
4
4
-
-
-
-
0
0
2
2
2
2
2
3
5
5
4
4
4
3
-
-
-
-
0
0
-
-
-
-
0
0
7
8
8
8
10
11
2
2
2
2
3
3
8
8
8
8
9
9
5
5
5
5
5
5
7
7
7
7
7
7
3
3
3
3
3
3
7
8
8
8
9
9
-
-
-
-
0
0
10
10
11
11
11
11
86
87
88
90
94
95
45
46
46
46
50
53
12
12
12
12
14
14
-
-
-
-
0
0
7
8
9
9
9
9
4
4
5
5
6
6
11
11
11
11
15
16
-
-
-
-
0
0
5
5
6
6
6.5
6.5
14
14
14
14
15
15
14
17
17
17
17
17
4
4
4
4
4
4
9
9
9
9
9
10
19
19
21
21
21
21
8
8
8
8
8
8
45
45
55
55
65
70
4
4
4
4
4
4
358
366
383
384
416
427
117
CITY OF SCHERTZ, TEXAS
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Fiscal Year
Function
2015
2016
2017
2018
General Government
Building Project Permits Issued
3,087
5,919
4,800
5,251
Food Establishment Permits
135
145
201
181
Food Establishment Inspection
136
153
133
211
Foster/Adoption Inspections
22
21
21
18
Schertz Magazine
Number of Magazines printed
180,000
180,000
180,000
180,000
Police
CFS
36,138
39,064
34,428
45,190
Arrests
595
603
423
624
Traffic Violations
12,306
8,960
8,001
11,359
Accidents
2,040
2,119
2,057
2,244
Fire
Number of Rescue/Other Responses
2,167
2,327
2,758
3,055
Number of Fire Responses
99
67
86
161
Number of Inspections
698
440
519
562
Number of Training Classes Conductec
150
460
340
600
Number of Pre -Plan Inspections
980
867
922
788
EMS
Requests for Transport
9,286
9,723
9,956
10,059
Actual Transports
6,118
6,123
6,201
6,165
EMT Students
84
89
90
90
Marshal's Office
Warrants Issues
3,798
2,587
2,816
1,598
Warrants Cleared
3,691
3,492
2,822
2,022
Parks
Facility Reservations
275
240
251
248
Community and Civic Centers
Civic Center Reservations
478
483
590
516
Community Center Reservations
455
370
455
381
North Community Center Reservations
209
185
230
235
Animal Services
Number of Animals Handled
1,304
1,313
1,283
926
Number of Adoptions
357
410
348
319
Number of Return to Owners
213
205
228
218
Number of Transfers
296
316
326
297
Library
Annual Circulation
394,766
399,622
385,206
414,790
Library Visits
259,413
255,109
235,428
258,695
Library Program Attendance
13,825
15,282
16,814
16,945
Registered Users
31,138
30,702
31,432
30,806
118
TABLE 20
Fiscal Year
2019
2020
2021
2022
2023
2024
4,748
2,993
4,474
4,000
3,500
4,000
55
189
159
173
172
189
96
209
192
142
146
237
8
10
11
5
9
0
180,000
187,500
189,700
191,700
192,000
192,000
41,327
57,149
29,007
32,170
30,667
32,622
603
527
416
326
355
456
12,541
8,326
6,980
6,504
5,924
5,159
2,304
1,752
2,076
2,341
2,085
2,143
3,804
3,953
4,837
4,895
4,994
5,296
100
108
205
232
182
234
528
500
548
547
674
599
804
763
770
632
1,032
698
865
814
848
324
320
1,007
10,759
10,713
12,251
13,520
14,495
14,997
6,738
6,549
7,444
8,332
9,154
9,612
90
84
123
154
136
141
2,036
1,738
2,095
1,708
1,083
810
1,834
664
1,451
1,373
4,243
877
241
75
237
294
334
441
441
293
353
354
416
430
326
193
291
299
276
299
188
92
153
197
196
199
1,157
1,015
1,070
1,125
1,217
1,275
366
450
329
371
419
377
233
335
284
252
279
228
227
188
152
205
202
317
447,379
254,643
281,659
359,272
397,156
411,073
237,821
102,297
91,291
157,428
194,260
223,391
18,412
6,524
2,541
11,357
14,700
19,686
33,104
31,296
30,291
29,612
28,734
30,788
119
CITY OF SCHERTZ, TEXAS
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Function
Water
New Connections
Water Main Breaks
Total Consumption (hundreds of gallo
Daily Average Consumption
(thousands of gallons)
Peak Daily Consumption
(thousands of gallons)
Total Customers
Average Use Per Connection
Sewer
Total Customers
Facilities Maintenance
Number of Buildings Maintained
Square Footage
Source: Various City Department
r
Fiscal Year
2015
2016
2017
2018
369
213
303
235
45
45
45
50
14,757,134
16,097,931
15,222,373
15,833,124
40,431
43,942
41,705
43,378
8,385
10,985
11,000
9,083
13,570
13,877
14,124
14,678
5,135
5,352
5,244
5,294
12,058
12,282
12,398
12,866
21
21
21
25
234,202
234,202
234,202
245,218
120
TABLE 20
Fiscal Year
2019
2020
2021
2022
2023
2024
300
357
342
291
460
257
52
65
38
64
63
17,602,330
19,766,870
16,171,200
21,606,589
23,637,420
19,724,748
48,225
54,155
59,377
59,190
64,760
54,040
11,094
14,011
9,160
8,429
14,309
10,730
16,434
13,683
15,524
15,719
15,869
16,504
4,587
5,600
101,955
133,143
5,156
1,195
12,853
13,112
10,879
11,954
13,016
14,181
26
27
26
28
24
24
257,218
257,218
257,218
257,218
273,970
273,970
121
Function
Police
Stations
Police Vehicles
Fire
Stations
Training Facility
Fire Vehicles
EMS
Ambulances
Marshal's Office
Vehicles
Streets
Streets, paved (miles)
Streets, unpaved (miles)
Sidewalks (miles)
Parks and Recreation
Parks - Developed
Parks - Undeveloped
Playground
Swimming Pools
Baby Pools
Baseball/Softball Diamonds
Soccer Fields
Community Centers
Splash Pads
Animal Services
Control Vehicle
Library
Facility
Volumes in Collection
Water
Number of Reservoirs
Number of Pump Stations
Water Mains (miles)
Sewer
Sanitary Sewers (miles)
Storm Sewers (miles)
Facilites Services
Vehicles
Fleet
Generators
Vehicles & Equipment
CITY OF SCHERTZ, TEXAS
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
2015
1
48
2
16
9
7
149
5
Fiscal Year
2016
2017
2018
1
1
1
50
64
69
2
2
3
16
16
18
9
8
8
7
7
7
153
159
153
5
5
5
14
15
20
21
9
10
4
4
18
19
19
19
2
2
4
4
2
2
2
2
15
15
15
15
12
12
12
12
4
4
4
4
3
4
3
4
1
1
1
1
113,085
97,412
107,382
110,266
5
5
5
5
210
213
221
225
96
98
110
113
12
12
12
14
6
6
6
11
4
4
4
7
NA
NA
NA
384
Source: Various City Department
Notes: No Capital Asset indicators are available for the General Government or EMS function.
122
2019
1
68
3
19
9
7
165
5
2020
1
72
3
20
9
7
165
5
Fiscal Year
2021
1
66
3
20
10
7
168
5
2022
2023
1
1
76
90
3
3
24
24
11
12
3
NA
172
180
5
5
21
21
21
21
4
4
5
5
20
21
21
36
4
4
4
3
2
2
2
1
15
15
15
15
12
12
12
12
4
4
4
4
4
6
6
8
1
1
1
1
150,972
139,447
149,965
155,715
5
6
7
6
228
229
231
236
116
116
120
124
14
14
15
16
11
10
8
10
10
7
8
11
352
341
376
373
123
21
5
36
3
1
15
12
4
2
8
1
160,533
6
246
133
17
9
11
420
2024
NA
TABLE 21
1
97
3
25
13
182
5
21
5
36
3
1
15
12
4
2
8
1
170,265
6
251
142
18
10
13
428
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CITY OF SCHERTZ, TEXAS
SINGLE AUDIT REPORT
FOR THE YEAR ENDED SEPTEMBER 30, 2024
CITY OF SCHERTZ, TEXAS
TABLE OF CONTENTS
SEPTEMBER 30, 2024
Page
Number
Independent Auditor's Report on Compliance for Each Major
Federal Program, and Report on Internal Control Over
Compliance in Accordance with the Uniform Guidance ................................................. 1 - 3
Independent Auditor's Report on Internal Control Over
Financial Reporting and on Compliance and Other Matters
Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards....................................................... 4 - 5
Schedule of Expenditures of Federal Awards................................................................. 6
Notes to Schedule of Expenditure of Federal Awards ...................................................... 7
Schedule of Findings and Questioned Costs................................................................... 8
Summary Schedule of Prior Audit Findings.................................................................... 9
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I ; i
PATTILLO, BROWN & HILL, L.L.P.
401 West State Highway 6
Waco, Texas 76710
254,772.4901' pbhcpa.com
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR
EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER
COMPLIANCE IN ACCORDANCE WITH THE UNIFORM GUIDANCE
Honorable Mayor and
Members of City Council
City of Schertz, Texas
Report on Compliance for Each Major Federal Program
We have audited the City of Schertz, Texas' (the "City") compliance with the types of compliance
requirements described in the U.S. Office of Management and Budget (OMB) Compliance Supplement that
could have a direct and material effect on each of the City's major federal programs for the year ended
September 30, 2024. The City's major federal programs are identified in the summary of auditor's results
section of the accompanying schedule of findings and questioned costs.
In our opinion, the City complied, in all material respects, with the compliance requirements referred
to above that could have a direct and material effect on each of its major federal programs for the year ended
September 30, 2024.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America (GARS); the standards applicable to financial audits contained in Government
Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards);
and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our
responsibilities under those standards and the Uniform Guidance are further described in the Auditor's
Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of the City and to meet our other ethical responsibilities, in
accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major
federal program. Our audit does not provide a legal determination of the City's compliance with the
compliance requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design,
implementation, and maintenance of effective internal control over compliance with the requirements of laws,
statutes, regulations, rules and provisions of contracts or grant agreements applicable to the City's federal
programs.
OFFICE LOCATIONS
TEXAS i Waco ( Temple f Hillsboro 1 Houston AICPA
NEW MEXICO Albuquerque GAQC Member
Auditor's Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the
compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion
on the City's compliance based on our audit. Reasonable assurance is a high level of assurance but is not
absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS,
Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it
exists. The risk of not detecting material noncompliance resulting from fraud is higher than that resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control. Noncompliance with the compliance requirements referred to above is considered material, if
there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by
a reasonable user of the report on compliance about the City's compliance with the requirements of each
major federal program as a whole.
In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform
Guidance, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material noncompliance, whether due to fraud or error, and design
and perform audit procedures responsive to those risks. Such procedures include examining, on a test
basis, evidence regarding the City's compliance with the compliance requirements referred to above
and performing such other procedures as we considered necessary in the circumstances.
• Obtain an understanding of the City's internal control over compliance relevant to the audit in order to
design audit procedures that are appropriate in the circumstances and to test and report on internal
control over compliance in accordance with the Uniform Guidance, but not for the purpose of
expressing an opinion on the effectiveness of the City's internal control over compliance. Accordingly,
no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in
internal control over compliance that we identified during the audit.
Report on Internal Control over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal
program on a timely basis. A material weakness in internal control over compliance is a deficiency, or
combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that
material noncompliance with a type of compliance requirement of a federal program will not be prevented, or
detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a
deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance
requirement of a federal program that is less severe than a material weakness in internal control over
compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over compliance
that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal
control over compliance that we consider to be material weaknesses. However, material weaknesses may
exist that have not been identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal
control over compliance. Accordingly, no such opinion is expressed.
The purpose of this report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements of the
Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
2
Report on Schedule of Expenditures of Federal Awards
We have audited the financial statements of the governmental activities, business -type activities, each
major fund, and the aggregate remaining fund information of the City of Schertz, Texas, as of and for the year
ended September 30, 2024, and the related notes to the financial statements, which collectively comprise the
City's basic financial statements. We issued our report thereon dated March 17, 2025, which contained
unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming
opinions on the financial statements that collectively comprise the basic financial statements. The
accompanying Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as
required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements,
Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and is not a required part of
the basic financial statements. Such information is the responsibility of management and was derived from
and relates directly to the underlying accounting and other records used to prepare the basic financial
statements. The information has been subjected to the auditing procedures applied in the audit of the financial
statements and certain additional procedures, including comparing and reconciling such information directly to
the underlying accounting and other records used to prepare the basic financial statements or to the basic
financial statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, the Schedule of Expenditures of Federal
Awards is fairly stated in all material respects in relation to the basic financial statements as a whole.
The purpose of this report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements of the
Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
PCIA, � � a
1
Waco, Texas
March 17, 2025
3
MM-
PATTILLO, BROWN & HILL, L.L.P.
401 West State Highway 6
Waco, Texas 76710
254.772.4901 1 pkhcpa.cam
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS
PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Honorable Mayor and
Members of City Council
City of Schertz, Texas
We have audited in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards issued
by the Comptroller General of the United States, the financial statements of the governmental activities, the
business -type activities, each major fund, and the aggregate remaining fund information of the City of
Schertz, Texas (the "City") as of and for the year ended September 30, 2024, and the related notes to the
financial statements, which collectively comprise the City's basic financial statements, and have issued our
report thereon dated March 17, 2025. Our report includes a reference to other auditors who audited the
financial statements of Schertz-Seguin Local Government Corporation, as described in our report on City of
Schertz, Texas' financial statements. This report does not include the results of the other auditors' testing of
internal control over financial reporting or compliance and other matters that are reported on separately by
those auditors.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal
control over financial reporting (internal control) as a basis for determining audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but
not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we
do not express an opinion on the effectiveness of the City's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees in the normal course of performing their assigned functions, to prevent, or detect
and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of
deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the
entity's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant
deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a
material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of
this section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or
significant deficiencies may exist that have not been identified.
4
OFFICE: LOCAMONS
TEXAS 1 Waco I Temple I Hilisboro I Houston
NEW MEXICO I Albuquerque
`1 AICPA
GAQC Member
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free of
material misstatements, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have direct and material effect on the
financial statements. However, providing an opinion on compliance with those provisions was not an objective
of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no
instances of noncompliance or other matters that are required to be reported under Government Auditing
Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's
internal control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this
communication is not suitable for any other purpose.
',.:
Waco, Texas
March 17, 2025
E
CITY OF SCHERTZ, TEXAS
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED SEPTEMBER 30, 2024
Federal Grantor/ Assistance Pass -Through
Pass -Through Grantor/ Listing Entity Identifying Federal
Program Title Number Number Expenditures
U.S. Department of Justice
Direct Programs:
Equitable Sharing Agreement and Certification 16.922 N/A $ 43,544
Total Direct Programs _ 43,544
Total U.S. Department of Justice _ 43,544
U.S. Department of Treasury
Passed through the Texas Division of Emergency Management:
COVID-19 - State and Local Fiscal Recovery Fund (ARP Act)
21.027 TX2511
694,541
Total Texas Division of Emergency Management
_ 694,541
Total U.S. Department of Treasury
`694,541
National Endowment for the Humanities (NEH)
Passed through the Texas State Library and Archives Commission:
Grants to States - Interlibrary Loan Program (ILL)
45.310 902524
5,086
Total Texas State Library and Archives Commission
5,086
Total National Endowment for the Humanities (NEH)
5,086
U.S. Department of Health and Human Services
Passed through the Texas Health and Human Services Commission:
Medicaid Cluster - Ambulance Services -
Uncompensated Care Costs
93.778 N/A
_0j141
Total Texas Health and Human Services Commission
90,141
Total U.S. Health and Human Services Commission
90,141
U.S. Department of Homeland Security
Passed through Texas Division of Emergency Management:
Disaster Grants - Public Assistance
97.036 N/A
378,480,
Total Texas Division of Emergency Management
378,480
Total U.S. Department of Homeland Security
378,480
Total Expenditures of Federal Awards
1,211,792
The accompanying notes are an integral part
of this schedule. 6
CITY OF SCHERTZ, TEXAS
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED SEPTEMBER 30, 2024
1. GENERAL
The accompanying schedule of expenditures of federal awards presents the activity of all applicable federal
awards of the City of Schertz, Texas. The City's reporting entity is defined in Note I to the City's basic
financial statements. Federal awards received directly from federal and state agencies as well as federal
awards passed through other government agencies are included in the respective schedule.
2. BASIS OF ACCOUNTING
The accompanying schedule of expenditures of federal awards is presented using modified accrual basis of
accounting, which is described in Note I to the City's basic financial statements.
3. RELATIONSHIP TO FEDERAL FINANCIAL REPORTS
Grant expenditure reports as of September 30, 2024, which have been submitted to grantor agencies will,
in some cases, differ slightly from amounts disclosed herein. The reports prepared for grantor agencies are
typically prepared at a later date and often reflect refined estimates of year-end accruals. The reports will
agree at termination of the grant as the discrepancies noted are timing differences.
4. INDIRECT COSTS
The City has not elected to use the de minimis indirect cost rate as allowed in the Uniform Guidance, Section
414.
5. PASS -THROUGH EXPENDITURES
None of the federal programs expended by the City were passed through to subrecipients.
7
CITY OF SCHERTZ, TEXAS
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED SEPTEMBER 30, 2024
Summary of the Auditor's Results
Financial Statements:
Type of auditor's report issued:
Internal control over financial reporting:
Material weakness(es) identified?
Significant deficiency(ies) identified that are
not considered a material weakness?
Noncompliance material to
financial statements noted?
Federal Awards:
Internal control over major programs:
Material weakness(es) identified?
Significant deficiency(ies) identified that are
not considered a material weakness?
Type of auditor's report issued on compliance for
major federal programs
Any audit findings disclosed that are required to be
reported in accordance with 2 CFR 200.516(a)?
Identification of major federal programs:
Assistance Listing Numbers :
21.027
The dollar threshold used to distinguish between
type A and type B federal programs.
Auditee qualified as low -risk auditee?
Findings Relating to the Financial Statements Which
are Required to be Reported in Accordance With
Generally Accepted Government Auditing Standards
None reported
Findings and Questioned Costs for Federal Awards
None reported
8
Unmodified
No
None reported
No
No
None reported
Unmodified
None
Name of Federal Program or Cluster:
COVID-19 - State and Local Fiscal
Recovery Fund (ARP Act)
$750,000
Yes
CITY OF SCHERTZ, TEXAS
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
FOR THE YEAR ENDED SEPTEMBER 30, 2024
None
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