City of Schertz ACFR FY 2023-2024
CITY OF SCHERTZ, TEXAS
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED
SEPTEMBER 30, 2024
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 ..................................................................................................... i - iv
City Officials ................................................................................................................. v
Organizational Chart ..................................................................................................... vi
Certificate of Achievement ............................................................................................. vii
FINANCIAL SECTION
Independent Auditor’s Report ......................................................................................... 1 – 3
Management Discussion and Analysis .............................................................................. 4 – 12
Basic Financial Statements
Government-Wide Financial Statements:
Statement of Net Position ......................................................................................... 13 – 14
Statement of Activities ............................................................................................. 15 – 16
Fund Financial Statements:
Governmental Funds
Balance Sheet ...................................................................................................... 17 – 18
Reconciliation of the Balance Sheet of Governmental
Funds to the Statement of Net Position ............................................................... 19
Statement of Revenues, Expenditures, and
Changes in Fund Balances ................................................................................. 20 – 21
Reconciliation of Revenues, Expenditures and Changes
In Fund Balances – Governmental Funds to the
Statement of Activities ...................................................................................... 22
Proprietary Funds
Statement of Net Position ...................................................................................... 23 - 24
Statement of Revenues, Expenses, and
Changes in Fund Net Position ............................................................................. 25
Statement of Cash Flows ....................................................................................... 26 – 27
Notes to the Financial Statements ............................................................................. 28 – 54
Required Supplementary Information
Schedule of Revenues, Expenditures, and Changes in
Fund Balance – General Fund – Budget and Actual ...................................................... 55 – 56
Schedule of Revenues, Expenditures, and Changes in
Fund Balance – Economic Development Corporation – Budget and Actual ....................... 57
Notes to Budgetary Schedules ..................................................................................... 58
Schedule of Changes in Net Pension
Liability and Related Ratios ....................................................................................... 59 – 60
Schedule of Employer Contributions ............................................................................. 61 – 62
Schedule of Changes – TMRS Other Post-Employment Benefit Liability and Related Ratios ......................................................................................... 63 – 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
Change in 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 ................................................................................... 11 105 – 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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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.
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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 30th.
The fiscal year for Schertz is from October 1 through September 30. The appropriated budget is prepared by each
department (e.g. police). The City Manager may make transfers of appropriations within a department. The City
Manager may make transfers between departments and funds with City Council approval. Budget to actual
comparisons are provided in this report for each individual governmental fund for which an appropriated annual
budget has been adopted. For the general fund, this comparison is presented on pages 55-56 as part of the required
supplementary information.
Factors Affecting Financial Condition
The information presented in the financial statements is perhaps best understood when it is considered from the
broader perspective of the specific environment within which the City of Schertz operates.
Local economy.
Economic growth in Schertz remained strong in 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.
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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 1 bond proposition before voters totally $15.45 million for Fire Station number
4 which passed. The funds for the new fire station were issued in 2022 and 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.
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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 James P. Walters
City Manager Finance Director
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CITY OF SCHERTZ, TEXAS
CITY OFFICIALS
MAYOR RALPH GUTIERREZ
MAYOR PRO-TEM ROBERT WESTBROOK
CITY COUNCIL MARK E. DAVIS
MICHELLE WATSON
PAUL MACALUSO
TIFFANY GIBSON
ROBERT WESTBROOK
ALLISON HEYWARD
TIM BROWN
CITY MANAGER STEVE WILLIAMS
DIRECTOR OF FINANCE JAMES WALTERS
CITY ATTORNEY DAN SANTEE
FY 2023-2024
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Schertz
Texas
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
September 30, 2023
Executive Director/CEO
vii
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FINANCIAL SECTION
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INDEPENDENT AUDITOR’S REPORT
Honorable Mayor and
Members of the City Council
City of Schertz, Texas
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business-type activities,
each major fund, and the aggregate remaining fund information of the City of Schertz, Texas (the “City”), as of and for the year ended September 30, 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.
1
2
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and
therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing
Standards will always detect a material misstatement when it exists. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are
considered material if there is a substantial likelihood that, individually or in the aggregate, they would
influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether
due to fraud or error, and design and perform audit procedures responsive to those risks.
Such procedures include examining, on a test basis, evidence regarding the amounts and
disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of
the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the
aggregate, that raise substantial doubt about the City’s ability to continue as a going concern
for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–
related matters that we identified during the audit.
Report on Summarized Comparative Information
We have previously audited the City of Schertz, Texas’ fiscal year 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.
3
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis, budgetary comparison information, and pension and OPEB information
be presented to supplement the basic financial statements. Such information, although not a part of the basic
financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an
essential part of financial reporting for placing the basic financial statements in an appropriate operational,
economic, or historical context. We have applied certain limited procedures to the required supplementary
information in accordance with auditing standards generally accepted in the United States of America, which
consisted of inquiries of management about the methods of preparing the information and comparing the
information for consistency with management’s responses to our inquiries, the basic financial statements, and
other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion
or provide any assurance on the information because the limited procedures do not provide us with sufficient
evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual nonmajor fund
financial statements and schedules are presented for purposes of additional analysis and are not a required
part of the basic financial statements. Such information is the responsibility of management and was derived
from and relates directly to the underlying accounting and other records used to prepare the basic financial
statements. Such information has been subjected to the auditing procedures applied in the audit of the basic
financial statements and certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepare the basic financial statements or to
the basic financial statements themselves, and other additional procedures in accordance with auditing
standards generally accepted in the United States of America. In our opinion, the combining and individual
nonmajor fund financial statements and schedules are fairly stated, in all material respects, in relation to the
basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual comprehensive financial report (ACFR). The other information comprises the introductory section and statistical section but does not include the financial statements and our auditor's report thereon. Our opinions on the financial statements do
not cover the other information, and we do not express an opinion or any form of assurance thereon. In
connection with our audit of the financial statements, our responsibility is to read the other information and
consider whether a material inconsistency exists between the other information and the financial statements,
or the other information otherwise appears to be materially misstated. If, based on the work performed, we
conclude that an uncorrected material misstatement of the other information exists, we are required to
describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated 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.
Waco, Texas
March 17, 2025
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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.
5
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, $48,225,235, may be
used to meet the government's ongoing obligations to citizens and creditors.
6
At the end of the current fiscal year, the City of Schertz is able to report positive balances in all three categories of
net position, both for the government as a whole, as well as for its separate governmental and business-type
activities. The same situation held true for the prior fiscal year.
2024 2023 2024 2023 2024 2023
Current and other assets 125,153,191$ 97,512,162$ 66,639,490$ 64,573,716$ 191,792,681$ 162,085,878$
Capital assets 194,684,599 194,268,903 144,205,606 135,961,908 338,890,205 330,230,811
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 125,342,606 115,352,201 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 200,296,128$ 184,522,196$ 173,541,652$ 160,613,147$ 373,837,780$ 345,135,343$
Government-Wide
City of Schertz's Net Position
Activities Activities Total
Governmental Business-Type
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 $11.7 million of capital contribution revenue
related to dedicated infrastructure assets and also experienced sharp increases in property and sales taxes. These
increases stem from the City’s continued rapid population growth; continued new housing and business developments resulted in increased assessed value for property taxes and resulted in the creation of infrastructure that was dedicated to the City. The related population increases resulted in increased economic activity that
increased sales tax revenues.
The following table indicates changes in net position for governmental and business-type activities followed by
graphs displaying total revenues and expenses by type:
2024 2023 2024 2023 2024 2023
Revenues:
Program revenues:Charges for services 7,782,686$ 6,267,868$ 42,793,475$ 41,093,604$ 50,576,161$ 47,361,472$ Operating grants & contributions 3,579,794 2,425,937 - - 3,579,794 2,425,937
Capital contributions 3,293,373 18,456,911 8,431,343 14,180,619 11,724,716 32,637,530
General revenues:
Property taxes 27,147,745 25,118,429 - - 27,147,745 25,118,429
Other taxes 23,393,401 23,388,656 - - 23,393,401 23,388,656
Investment earnings 5,569,055 4,678,690 4,535,559 1,927,277 10,104,614 6,605,967
Miscellaneous 1,119,844 820,465 974,786 479,479 2,094,630 1,299,944
Total revenues 71,885,898 81,156,956 56,735,163 57,680,979 128,621,061 138,837,935
Expenses:
General government 8,678,145 8,244,956 - - 8,678,145 8,244,956
Public safety 22,719,864 22,195,399 - - 22,719,864 22,195,399
Public environment 8,802,846 6,188,351 - - 8,802,846 6,188,351
Parks and recreation 5,539,108 4,253,278 - - 5,539,108 4,253,278
Cultural 1,520,759 1,380,793 - - 1,520,759 1,380,793
Administration 6,343,146 5,363,700 - - 6,343,146 5,363,700 Interest and other fees 2,508,098 2,555,917 - - 2,508,098 2,555,917 Water and sewer - - 32,088,184 30,088,159 32,088,184 30,088,159
EMS - - 11,718,474 10,176,945 11,718,474 10,176,945
Total expenses 56,111,966 50,182,394 43,806,658 40,265,104 99,918,624 90,447,498
Increase in net position
before transfers 15,773,932 30,974,562 12,928,505 17,415,875 28,702,437 48,390,437
Transfers - 591 - (591) - -
Change in net position 15,773,932 30,975,153 12,928,505 17,415,284 28,702,437 48,390,437
Net position - beginning of year 184,522,196 153,547,043 160,613,147 143,197,863 345,135,343 296,744,906
Net position - end of year 200,296,128$ 184,522,196$ 173,541,652$ 160,613,147$ 373,837,780$ 345,135,343$
Government-Wide
City of Schertz's Changes in Net Position
Activities Activities Total
Business-TypeGovernmental
7
TOTAL REVENUES – GOVERNMENT-WIDE
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
Charges forServices OperatingGrants andContributions
Capital GrantsandContributions
PropertyTaxes Other Taxes UnrestrictedInvestmentEarnings
Miscellaneous
2024 2023
TOTAL EXPENSES – GOVERNMENT-WIDE
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
GeneralGovernment Public Safety PublicEnvironment Parks andRecreation Cultural Administration Interest andOther Fees
2024 2023
8
GENERAL REVENUE BY SOURCE – GOVERNMENTAL ACTIVITIES
Property Tax
47%
Sales Tax
35%
Franchise Tax
4%
Occupancy Tax
2%
Investment Earnings10%
Miscellaneous
2%
TOTAL REVENUES AND EXPENSES – BUSINESS-TYPE ACTIVITIES
$-
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
2024 2023
Revenues Expenses
9
BUSINESS-TYPE REVENUES AND EXPENSES
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
Water and Sewer Utilities EMS
Revenues Nonoperating Revenues Capital Contributions and Transfers Expenses
Financial Analysis of the Government's Funds
As noted earlier, the City of Schertz uses fund accounting to ensure and demonstrate compliance with finance-
related legal requirements.
Governmental funds. The focus of the City's governmental funds is to provide information on near-term inflows,
outflows, and balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net
resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the City's governmental funds reported combined ending fund
balances of $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.
10
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
Capital assets. The City's investment in capital assets for its governmental and business-type activities as of
September 30, 2024, amounts to $338,890,205 (net of accumulated depreciation), including several projects in
progress from voter approved bonds.
2024 2023 2024 2023 2024 2023
Land 15,450,585$ 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 (98,720,552) (88,306,247) (49,137,161) (44,438,286) (147,857,713) (132,744,533)
TOTALS 194,684,599$ 194,268,903$ 144,205,606$ 135,961,908$ 338,890,205$ 330,230,811$
Activities Activities Total
Governmental Business-Type
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.
11
LONG TERM DEBT
At the end of the current fiscal year, the City of Schertz had total long-term debt outstanding of $122,484,521. The
related principal and interest payment for the bonds are backed by an annual ad valorem tax levied against all
taxable property within the City. The City of Schertz maintains an "AA+" rating from Standard and Poor’s.
2024 2023 2024 2023 2024 2023
General obligation bonds 46,395,000$ 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 95,893,426$ 81,829,897$ 26,591,095$ 28,360,773$ 122,484,521$ 110,190,670$
Activities Activities Total
Governmental Business-Type
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.
12
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.
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BASIC
FINANCIAL STATEMENTS
Governmental Business-Type
Activities Activities Total
ASSETSCash and cash equivalents 112,611,161$ 24,837,104$ 137,448,265$
Investments 4,829,710 1,222,270 6,051,980
Internal balances 732,091 (732,091) - Receivables, net of allowances:
Taxes 4,630,649 - 4,630,649
Accounts and other 1,242,882 8,590,258 9,833,140 Accrued interest - 6,324 6,324
Inventories 285,571 231,031 516,602
Restricted assets:Cash and cash equivalents 110,791 10,275,888 10,386,679 Service concession arrangement receivable:
Due within one year 90,909 - 90,909
Due in more than one year 619,427 - 619,427 Investment in joint venture - 22,208,706 22,208,706
Capital assets:
Land 15,450,585 2,415,103 17,865,688 Water rights - 70,245 70,245
Buildings and improvements 67,671,372 3,725,152 71,396,524
Equipment and vehicles 19,506,533 7,895,394 27,401,927 Infrastructure 175,820,607 143,743,449 319,564,056
Construction in progress 14,956,054 35,493,424 50,449,478
Accumulated depreciation (98,720,552) (49,137,161) (147,857,713)
Total Assets 319,837,790 210,845,096 530,682,886
DEFERRED OUTFLOWS OF RESOURCESDeferred loss on debt refunding 392,195 - 392,195
OPEB related 472,800 164,140 636,940
Pension related 6,291,741 2,184,268 8,476,009
Total Deferred Outflows of Resources 7,156,736 2,348,408 9,505,144
Primary Government
CITY OF SCHERTZ, TEXAS
STATEMENT OF NET POSITION
SEPTEMBER 30, 2024
The accompanying notes are an integral part
of these financial statements.13
Governmental Business-Type
Activities Activities Total
LIABILITIESAccounts payable 2,539,257$ 4,153,880$ 6,693,137$
Accrued liabilities 777,467 289,202 1,066,669
Retainage payable 6,893 718,963 725,856 Due to other governments 50,043 - 50,043
Unearned revenue 6,544,945 302,260 6,847,205
Accrued interest payable 438,634 154,964 593,598
Customer deposits 33,027 600,837 633,864 Noncurrent liabilities:
Due within one year:
Compensated absences 281,144 114,526 395,670 Total OPEB liability 86,507 29,892 116,399
Service concession arrangement 55,241 - 55,241
Long-term debt 7,042,307 1,781,921 8,824,228
Due in more than one year:
Compensated absences 1,124,574 458,106 1,582,680 Total OPEB liability 2,214,732 769,014 2,983,746
Net pension liability 16,326,037 5,667,815 21,993,852
Service concession arrangement 376,397 - 376,397 Long-term debt 87,445,401 24,236,542 111,681,943
Total Liabilities 125,342,606 39,277,922 164,620,528
DEFERRED INFLOWS OF RESOURCES
Deferred service concession arrangement 278,698 - 278,698
OPEB related 972,045 337,461 1,309,506 Pension related 105,049 36,469 141,518
Total Deferred Inflows of Resources 1,355,792 373,930 1,729,722
NET POSITIONNet investment in capital assets 142,891,901 125,867,091 268,758,992
Restricted for:
Police and municipal court 920,715 - 920,715 PEG capital fees 136,899 - 136,899
Tourism development 3,439,858 - 3,439,858
Economic development 41,137,588 - 41,137,588 Parks and tree mitigation 1,777,495 - 1,777,495 Debt service 1,786,712 - 1,786,712
Scholarships and other purposes 1,013,530 - 1,013,530
Construction - 6,640,756 6,640,756 Unrestricted 7,191,430 41,033,805 48,225,235
Total Net Position 200,296,128$ 173,541,652$ 373,837,780$
Primary Government
CITY OF SCHERTZ, TEXAS
STATEMENT OF NET POSITION
SEPTEMBER 30, 2024
14
Operating Capital
Charges for Grants and Grants and
Functions/Programs 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 - 8,431,343 EMS 11,718,474 10,231,081 - -
Total Business-Type Activities 43,806,658 42,793,475 - 8,431,343
Total Primary Government 99,918,624$ 50,576,161$ 3,579,794$ 11,724,716$
General revenues:
Taxes:
Ad valorem
SalesFranchise fees
Hotel/motel
Mixed drink
Investment earningsMiscellaneous
Total General Revenues
Change in Net Position
Net Position - Beginning
Net Position - Ending
Program Revenues
CITY OF SCHERTZ, TEXAS
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2024
The accompanying notes are an integral part
of these financial statements.15
Governmental Business-Type
Activities Activities Total
(6,696,598)$ -$ (6,696,598)$
(16,639,470) - (16,639,470)
(3,471,054) - (3,471,054)
(4,606,671) - (4,606,671)
(1,191,076) - (1,191,076)
(6,343,146) - (6,343,146) (2,508,098) - (2,508,098)
(41,456,113) - (41,456,113)
- 8,905,553 8,905,553 - (1,487,393) (1,487,393)
- 7,418,160 7,418,160
(41,456,113) 7,418,160 (34,037,953)
27,147,745 - 27,147,745
20,095,955 - 20,095,955 2,354,657 - 2,354,657
849,265 - 849,265
93,524 - 93,524
5,569,055 4,535,559 10,104,614 1,119,844 974,786 2,094,630
57,230,045 5,510,345 62,740,390
15,773,932 12,928,505 28,702,437
184,522,196 160,613,147 345,135,343
200,296,128$ 173,541,652$ 373,837,780$
Primary Government
Net (Expense) Revenue and Changes in Net Position
16
General Capital Projects Debt ServiceFundFundFund
ASSETS
Cash and cash equivalents 14,004,790$ 41,622,628$ 2,029,913$
Investments 2,499,161 - -
Receivables (net of allowances)
Taxes 3,293,402 - 195,433
Accounts and other 1,134,923 - -
Due from other funds 1,376,444 - -
Inventory 285,571 - -
Restricted assets:
Cash and cash equivalents 110,791 - -
Total Assets 22,705,082 41,622,628 2,225,346
LIABILITIES
Accounts payable 2,446,518 78,995 -
Accrued salaries and benefits 777,467 - -
Retainage payable - - -
Customer deposits 33,027 - -
Due to other governments 50,043 - -
Due to other funds - - - Unearned revenues 31,498 - -
Total Liabilities 3,338,553 78,995 -
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues 1,418,826 - 195,433
Total Deferred Inflows of Resources 1,418,826 - 195,433
FUND BALANCES
Nonspendable for:
Inventory 285,571 - -
Restricted for:
Police and public safety/municipal court 409,637 - -
Municipal court 715,579 - -
PEG capital fees 136,899 - -
Capital improvement - 37,654,911 -
Debt service - - 2,029,913
Tourism development - - -
Parks and tree mitigation - - -
Historical Committee and library - - -
Economic development - - -
Animal control 47,461 - -
Scholarships 149,097 - -
Committed for:
Capital Projects - 3,888,722 - Civic Center/SIED 1,260,939 - -
Assigned for:
Property replacement 1,007,626 - -
Subsequent year's budget 2,596,149 - - Unassigned 11,338,745 - -
Total Fund Balances 17,947,703 41,543,633 2,029,913
Total Liabilities, Deferred Inflows of Resources,
and Fund Balances 22,705,082$ 41,622,628$ 2,225,346$
SEPTEMBER 30, 2024
GOVERNMENTAL FUNDS
BALANCE SHEET
CITY OF SCHERTZ, TEXAS
The accompanying notes are an integral part
of these financial statements.17
Economic American Nonmajor Total
Development Rescue Plan Act Governmental GovernmentalCorporationFundFundsFunds
36,851,691$ 7,334,732$ 10,767,407$ 112,611,161$
2,330,549 - - 4,829,710
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 - 6,544,945
8,807 6,520,340 649,290 10,595,985
- - - 1,614,259
- - - 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$ 7,334,732$ 10,867,417$ 125,087,208$
18
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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 200,296,128$
CITY OF SCHERTZ, TEXAS
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
SEPTEMBER 30, 2024
The accompanying notes are an integral part
of these financial statements.19
General Capital Projects Debt Service
Fund Fund FundREVENUES
Taxes 34,041,974$ -$ 8,917,461$
Permits and fees 2,627,370 - -
Service fees 2,339,769 - -
Fines and fees 366,823 - - Intergovernmental 2,940,640 - -
Investment earnings 1,251,166 1,379,778 195,912
Miscellaneous 897,538 - 221,136
Total Revenues 44,465,280 1,379,778 9,334,509
EXPENDITURES
Current:
General government 7,106,636 - -
Public safety 23,365,331 - - Public environment 2,518,012 - -
Parks and recreation 4,161,603 - -
Cultural 1,429,406 - -
Administration 5,688,426 - -
Capital outlay 1,771,018 2,497,812 - Debt service:
Principal - - 5,850,000
Interest and fiscal charges - - 2,667,861
Bond issue costs - 163,613 5,000
Total Expenditures 46,040,432 2,661,425 8,522,861
Excess (Deficiency) of Revenues
Over Expenditures (1,575,152) (1,281,647) 811,648
OTHER FINANCING SOURCES (USES)
Issuance of bonds - 19,165,000 - Premium on issuance of bonds - 998,613 -
Transfers in 285,239 12,892 104,407
Transfers out - (104,407) -
Total Other Financing Sources (Uses)285,239 20,072,098 104,407
NET CHANGE IN FUND BALANCE (1,289,913) 18,790,451 916,055
FUND BALANCES - BEGINNING 19,237,616 22,753,182 1,113,858
FUND BALANCES - ENDING 17,947,703$ 41,543,633$ 2,029,913$
FOR THE YEAR ENDED SEPTEMBER 30, 2024
GOVERNMENTAL FUNDS
AND CHANGES IN FUND BALANCES
STATEMENT OF REVENUES, EXPENDITURES
CITY OF SCHERTZ, TEXAS
The accompanying notes are an integral part
of these financial statements.20
Economic American Nonmajor Total
Development Rescue Plan Act Governmental Governmental
Corporation Fund Funds Funds
6,698,059$ -$ 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
1,868,124 414,711 459,364 5,569,055
1,101 - 69 1,119,844
8,567,284 1,109,252 4,415,109 69,271,212
384,286 - 56,535 7,547,457
- - 43,544 23,408,875 - - 81,429 2,599,441
- - - 4,161,603
- - 16,880 1,446,286
557,505 - 80,265 6,326,196
- 694,541 111,961 5,075,332
- - - 5,850,000
- - - 2,667,861
- - - 168,613
941,791 694,541 390,614 59,251,664
7,625,493 414,711 4,024,495 10,019,548
- - - 19,165,000 - - - 998,613
- - - 402,538
(298,131) - - (402,538)
(298,131) - - 20,163,613
7,327,362 414,711 4,024,495 30,183,161
32,995,834 399,681 6,193,632 82,693,803
40,323,196$ 814,392$ 10,218,127$ 112,876,964$
21
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Net Changes in Fund Balances - Governmental Funds 30,183,161$
Amounts reported for governmental activities in the statement of activities aredifferent because:
Governmental funds report capital outlays as expenditures.However,in the
governmental activities statement of activities,that cost of those assets is allocated
over their estimated useful lives and reported as depreciation expense.
Capital outlay 10,830,001 Depreciation expense (10,414,305)
Revenues in the Statement of Activities that do not provide current financial
resources are not reported as revenues in the funds.
Property taxes 25,404 Court fines (704,091)
The issuance of long-term debt (e.g.bonds)provides current financial resources to
governmental funds,while the repayment of the principal of long-term debt
consumes the current financial resources of governmental funds.Neither
transaction,however,has any effect on net position.Also,governmental funds
report the effect of premiums,discounts,and similar items when debt is first
issued,whereas the amounts are deferred and amortized in the Statement of
Activities.
Repayment of principal of long-term debt 6,245,884
Amortization of loss on refunding (57,272)
Current year changes in certain long-term liabilities do not require the use of
current financial resources and,therefore,are not reported as expenditures in
governmental funds.
Issuance of bonds (19,165,000)
Premium on issuance of bonds (998,613)
Compensated Absences (145,800)
Net pension liability 66,799
Total OPEB liability (109,307)
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.17,071
Change in Net Position of Governmental Activities 15,773,932$
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
The accompanying notes are an integral part
of these financial statements.22
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 109,750 121,281 231,031
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
CITY OF SCHERTZ, TEXAS
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
SEPTEMBER 30, 2024
Business-Type
Activities
Enterprise Funds
The accompanying notes are an integral part
of these financial statements.23
Total
Water and Schertz Enterprise
Sewer System EMS FundLIABILITIES
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 POSITION
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$
Business-Type
Activities
Enterprise Funds
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
SEPTEMBER 30, 2024
CITY OF SCHERTZ, TEXAS
24
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Total
Water and Schertz Enterprise
Sewer System EMS Funds
OPERATING REVENUES
Fees charged to users 32,041,277$ 10,231,081$ 42,272,358$
Other charges 46,362 - 46,362
Miscellaneous 724,281 250,505 974,786
Total Operating Revenues 32,811,920 10,481,586 43,293,506
OPERATING EXPENSES
Personnel services 3,425,187 8,901,006 12,326,193
General and administrative 3,422,149 898,961 4,321,110
Contractual services 19,137,379 761,544 19,898,923
Supplies and maintenance 678,498 683,702 1,362,200
Depreciation 4,593,817 473,261 5,067,078
Total Operating Costs 31,257,030 11,718,474 42,975,504
Operating Income (Loss)1,554,890 (1,236,888) 318,002
NON-OPERATING REVENUES (EXPENSES)
Investment revenue 4,511,317 24,242 4,535,559
Rent revenue 474,755 - 474,755 Interest expense (831,154) - (831,154)
Total Non-Operating Revenues (Expenses)4,154,918 24,242 4,179,160
Income before contributions and transfers 5,709,808 (1,212,646) 4,497,162
Capital contributions - impact fees 2,388,863 - 2,388,863
Capital contributions - dedicated assets 6,042,480 - 6,042,480
CHANGE IN NET POSITION 14,141,151 (1,212,646) 12,928,505
NET POSITION - BEGINNING 158,093,332 2,519,815 160,613,147
NET POSITION - END OF YEAR 172,234,483$ 1,307,169$ 173,541,652$
Business-Type
Activities
Enterprise Funds
CITY OF SCHERTZ, TEXAS
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2024
The accompanying notes are an integral part
of these financial statements.25
Water and Schertz Total
Sewer System EMS Enterprise
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers and users 32,184,917$ 10,019,047$ 42,203,964$
Cash paid to employees for services (3,408,428) (8,635,878) (12,044,306)
Cash paid to suppliers for goods and services (26,955,306) (2,094,320) (29,049,626)
Net Cash Provided By Operating Activities 1,821,183 (711,151) 1,110,032
CASH FLOWS FROM NON-CAPITAL FINANCING
ACTIVITIES
Transfers from other funds 91,499 732,091 823,590
Net Cash Used in Non-Capital Financing Activities 91,499 732,091 823,590
CASH FLOWS FROM CAPITAL & RELATED FINANCING
ACTIVITIES
Acquisition and construction of capital assets (6,602,442) (665,856) (7,268,298)
Capital contributions - impact fees 2,388,863 - 2,388,863
Interest paid on long-term debt (956,469) - (956,469)
Principal paid on long-term debt (1,630,000) (81,921) (1,711,921)
Net Cash Used in Capital and Related
Financing Activities (6,800,048) (747,777) (7,547,825)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investments (38,473) - (38,473)
Payments from rentals 474,755 - 474,755
Interest and investment earnings 4,511,317 24,242 4,535,559
Net Cash Provided By (Used in) Investing Activities 4,947,599 24,242 4,971,841
Net (Decrease) Increase in Cash and Cash Equivalents 60,233 (702,595) (642,362)
Cash and cash equivalents at beginning of year:
Cash and cash equivalents 21,699,922 703,066 22,402,988
Restricted cash and cash equivalents 13,352,366 - 13,352,366
35,052,288 703,066 35,755,354
Cash and cash equivalents at end of year
Cash and cash equivalents 24,836,633 471 24,837,104
Restricted cash and cash equivalents 10,275,888 - 10,275,888
35,112,521$ 471$ 35,112,992$
Enterprise Funds
CITY OF SCHERTZ, TEXAS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2024
Business-Type
Activities
The accompanying notes are an integral part
of these financial statements.26
Water and Schertz Total
Sewer System EMS Enterprise
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED BY OPERATING ACTIVITIES
Operating income (loss)1,554,890$ (1,236,888)$ 318,002$
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities:
Depreciation 4,593,817 473,261 5,067,078
Change in investment in joint venture (2,615,430) - (2,615,430)
Decrease (increase) in accounts receivable (409,065) (463,364) (872,429)
Decrease (increase) in inventory 16,886 (22,280) (5,394)
Decrease (increase) in inventory 219,527 416,896 636,423
Decrease (increase) in accounts receivable 7,540 10,114 17,654
Increase (decrease) in accounts payable (1,118,736) 272,167 (846,569)
Increase (decrease) in accrued liabilities 28,596 - 28,596
Increase (decrease) in customer deposits (24,012) - (24,012)
Increase (decrease) in unearned revenue (193,926) 825 (193,101)
Increase (decrease) in compensated absences (2,195) 76,118 73,923
Increase (decrease) in net pension liability (240,739) (302,856) (543,595)
Increase (decrease) in deferred OPEB inflows (1,765) 11,733 9,968
Increase (decrease) in deferred pension inflows 3,717 10,526 14,243
Increase (decrease) in total OPEB liability 2,078 42,597 44,675
Net cash provided by operating activities 1,821,183$ (711,151)$ 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$
Activities
Enterprise Funds
FOR THE YEAR ENDED SEPTEMBER 30, 2024
Business-Type
CITY OF SCHERTZ, TEXAS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
27
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28
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 Corporation - is a public, nonprofit corporation organized July 28, 2011 to
aid, assist, and act on behalf of the cities of Cibolo, Converse and Schertz in acquiring, constructing,
maintaining, and operating a water utility system. The participating governments have an ongoing financial
responsibility to fund the operation of the corporation through either purchase of services or by subsidizing
the operations.
29
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 Projects Fund accounts for the acquisition and construction of major capital facilities
financed from bond proceeds, grants, and transfers from other funds.
The Debt Service Fund accounts for the resources accumulated and payments made for principal and
interest on long-term general obligation debt of governmental funds.
The Economic Development Corporation collects sales taxes to support business development and
expansion within the City.
The American Rescue Plan Act Fund records revenue and expenditures related to the City’s COVID-
19 funding from the American Rescue Plan Act.
30
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.
31
F. Receivables and Payables
Activities between the funds that are representative of inter-fund loans outstanding at the end of the fiscal
year are referred to as due to/from other funds. Any residual balances outstanding between the
governmental activities and business-type activities are reported in the government-wide financial
statements as "internal balances".
Accounts receivables are reported net of allowances for uncollectible accounts. The allowance account
represents management's estimate of uncollectible accounts based upon experience and historical trends.
Property taxes for the City are levied each October 1 on the taxable value as of the preceding January 1, the
date a lien attaches, for all taxable real and personal property located in the City. Taxes are due by January
31 following the October 1 assessment date and become delinquent on February 1, at which time they begin
accruing penalty and interest. The enforceable legal claim date for property taxes is the assessment date;
therefore, the City did not record a receivable for accrual of future taxes at year end. Accordingly, no current
taxes receivable are reported. Delinquent taxes have been reported in the financial statements net of the
allowance for uncollectible taxes. Tax revenues are recognized as they become available. Accordingly, an
amount equal to taxes not yet available has been reported as unavailable revenue (a deferred inflow of
resources) at the government fund level.
G. Inventories
All inventories are valued at cost using the first-in/first-out (FIFO) method. Inventories of governmental
funds are recorded as expenditures when consumed rather than when purchased.
H. Restricted Assets
Certain proceeds from bonds, resources set aside for their repayment, and other restrictive agreements are
classified as restricted assets on the balance sheet because their use is limited by applicable bond covenants
and/or contractual arrangements.
I. Capital Assets
Capital assets, which include land, buildings and improvements, machinery, equipment, vehicles, and
infrastructure assets (i.e., roads, bridges, sidewalks, and similar items), are reported in the applicable
governmental or business-type activities columns in the government-wide financial statements. Capital
assets are defined by the City as assets with an initial, individual cost of more than $5,000 and an estimated
useful life in excess of one year. When capital assets are purchased, they are capitalized and depreciated in
the government-wide financial statements and the proprietary fund statements. Capital assets are recorded
as expenditures of the current period in the governmental fund financial statements.
Capital assets are valued at cost where historical records are available and at an estimated cost where no
records exist. Donated capital assets, donated works of art and similar items received as part of a service
concession arrangement are reported at acquisition value, rather than fair value.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend
asset lives are not capitalized. Improvements to capital assets that materially extend the life of the asset or
add to the value are capitalized. Major outlays for capital assets and improvements are capitalized as
projects are constructed.
Capital assets are depreciated over their useful lives on a straight-line basis as follows:
Use Lives
Assets (Years)
Buildings and improvements 10 - 50
Machinery, equipment, and vehicles 2 - 20
Infrastructure 15 - 30
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J. Deferred Inflows/Outflows of Resources
In addition to assets, the statement of financial position and/or balance sheet will sometimes report a
separate section for deferred outflows of resources. This separate financial statement element, deferred
outflows of resources, represents a consumption of net assets that applies to a future period(s) and so will
not be recognized as an outflow of resources (expense/expenditure) until then. The City has the following
items that qualify for reporting in this category.
• Deferred charges on refunding – A deferred charge on refunding results from the difference in the
carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over
the shorter of the life of the refunded or refunding debt.
• Pension and OPEB contributions after measurement date – These contributions are deferred and
recognized in the following fiscal year.
• Difference in expected and actual pension and OPEB experience - This difference is deferred and
recognized over the estimated average remaining lives of all members determined as of the
measurement date.
• Changes in actuarial assumptions and other inputs – This difference is deferred and recognized over the
estimated average remaining lives of all members determined as of the measurement date.
In addition to liabilities, the statement of financial position and/or balance sheet will sometimes report a
separate section for deferred inflows of resources. This separate financial statement element, deferred
inflows of resources, represents an acquisition of net assets that applies to a future period(s) and so will
not be recognized as an inflow of resources (revenue) until that time. The City has the following types of
items that qualify for reporting in this category.
• Unavailable revenue is reported only in the governmental funds balance sheet. These amounts are
deferred and recognized as an inflow of resources in the period that the amounts become available.
• Difference in projected and actual earnings on pension assets – This difference is deferred and amortized
over a closed five-year period.
• Difference in expected and actual pension and OPEB experience - This difference is deferred and
recognized over the estimated average remaining lives of all members determined as of the
measurement date.
• Changes in actuarial assumptions and other inputs – This difference is deferred and recognized over the
estimated average remaining lives of all members determined as of the measurement date.
K. Compensated Absences
It is the City's policy to permit employees to accumulate earned but unused vacation and compensatory time
benefits. There is no liability for unpaid accumulated sick leave since the City does not have a policy to pay
any amounts when employees separate from service with the City. All vacation and compensatory time pay
is accrued when incurred in the government-wide and proprietary fund financial statements. A liability for
these amounts is reported in governmental funds only if they have matured, for example, as a result of
employee resignations and retirements. The general fund, water and sewer fund and the EMS fund are used
to liquidate compensated absences.
L. Pensions
The net pension liability, deferred inflows, and outflows of resources related to pensions, and pension
expense, information about the fiduciary net position of the Texas Municipal Retirement System (TMRS),
and additions to and deductions from TMRS’s fiduciary net position have been determined on the same basis
as they are reported by TMRS. For this purpose, benefit payments (including refunds of employee
contributions) are recognized when due and payable in accordance with the benefit terms. Investments are
reported at fair value.
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M. Other Post-Employment Benefits (OPEB)
Supplemental Death Benefits Fund. For purposes of measuring the total Texas Municipal Retirement
System Supplemental Death Benefit Fund (TMRS SDBF) OPEB liability, related deferred outflows and
inflows of resources, and expense, City specific information about its total TMRS SDBF liability and
additions to/deductions from the City’s total TMRS SDBF liability have been determined on the same basis
as they are reported by TMRS. The TMRS SDBF expense and deferred (inflows)/outflows of resources
related to TMRS SDBF, primarily result from changes in the components of the total TMRS SDBF liability.
Most changes in the total TMRS SDBF liability will be included in TMRS SDBF expense in the period of the
change. For example, changes in the total TMRS SDBF liability resulting from current-period service cost,
interest on the TOL, and changes of benefit terms are required to be included in TMRS SDBF expense
immediately. Changes in the total TMRS SDBF liability that have not been included in TMRS SDBF expense
are required to be reported as deferred outflows of resources or deferred inflows of resources related to
TMRS SDBF.
Retiree Health Insurance. For purposes of measuring the total OPEB liability, OPEB related deferred
outflows and inflows of resources, and OPEB expense, benefit payments and refunds are recognized when
due and payable in accordance with the benefit terms. Contributions are not required but are measured as
payments by the City for benefits due and payable that are not reimbursed by plan assets. Information
regarding the City’s total OPEB liability is obtained from a report prepared by a consulting actuary, Gabriel
Roeder Smith & Company.
N. Long-Term Obligations
In the government-wide financial statements, and proprietary fund types in the fund financial statements,
long-term debt and other long-term obligations are reported as liabilities in the applicable governmental
activities, business-type activities, or proprietary fund type statement of net position. Bond premiums,
discounts, and losses on defeasance are amortized over the life of the bonds using the straight-line method.
Bonds payable are reported net of the applicable bond premium or discount. Losses on defeasance are
reported as deferred outflows of resources. Bond issuance costs are expensed as incurred.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well
as bond issuance costs, during the current period. The face amount of debt issued is reported as other
financing sources. Premiums received on debt issuances are reported as other financing sources while
discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld
from the actual debt proceeds received, are reported as debt service expenditures.
O. Fund Balance
Fund balances in governmental funds are classified as follows:
Nonspendable - Represents amounts that cannot be spent because they are either not in spendable form
(such as inventory or prepaid items) or legally required to remain intact.
Restricted - Represents amounts that are constrained by external parties, constitutional provisions or
enabling legislation.
Committed - Represents amounts that can only be used for a specific purpose because of a formal action
by the government’s highest level of decision-making authority: an ordinance adopted by City Council
prior to the end of the fiscal year. Once adopted, the limitation imposed by the ordinance remains in
place until a similar action is taken (the adoption of another ordinance) to remove or revise the
limitation.
Assigned - Represents amounts which the City intends to use for a specific purpose but do not meet the
criteria of restricted or committed. The City Council may make assignments through formal
documentation in the minutes. The City Council authorized (by way of policy) the City Manager to also
make assignments. The City Manager’s assignments do not require formal action; however, the City
Manager has not assigned any funds at this time.
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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 $266,464 in the Grant Fund. This
deficit is due to timing differences between expenditures and reimbursements of grant funds.
S. Budgetary Information
Annual budgets are adopted on a basis consistent with generally accepted accounting principles for all
governmental funds except the American rescue plan act fund, library advisory board fund, grant special
revenue fund, police department forfeiture special revenue fund and the capital projects fund, which adopts
project-length budgets.
II. DETAILED NOTES ON ALL FUNDS AND ACTIVITIES
A. Cash, Cash Equivalents and Investments
As of September 30, 2024, the City had the following cash, cash equivalents and investments:
Fair Value
Reported Weighted Average Measurements
Value Maturity (days)Using - Level 2
Investment type:
LOGIC 39,529,875$ 48 -$
Lone Star Investment Pool 29,060,228 21 -
Texas CLASS 72,231,881 34 -
Certificates of Deposit 4,529,802 79 -
U.S. Agency Securities 1,522,178 487 1,522,178
Subtotal 146,873,964 1,522,178$
Plus: depository and petty cash 960,980
Total cash and investments 147,834,944$
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.
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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 $100 of assessed
value.
However, the City may not adopt a tax rate that exceeds the tax rate calculated in accordance with the
Texas Property Tax Code without holding a public hearing. The Property Tax Code subjects an increase in
the effective tax rate to a referendum election, if petitioned by registered voters, when the effective tax
rate increase is more than 3.5% of the previous year’s effective tax rate.
Property taxes are recorded as receivables and unearned revenues at the time the taxes are assessed. In
governmental funds, revenues are recognized as the related ad valorem taxes are collected. Additional
amounts estimated to be collectible in the time to be a resource for payment of obligations incurred during
the fiscal year and therefore susceptible to accrual in accordance with generally accepted accounting
principles have been recognized as revenue. In the government-wide financial statements, the entire levy
is recognized as revenue, net of estimated uncollectible amounts (if any), at the levy date.
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C. Receivables
Receivables as September 30, 2024 for the government’s individual major funds and nonmajor funds in the
aggregate, including the applicable allowances for uncollectible accounts, are as follows:
General Economic Debt Nonmajor Water and Schertz
Fund Development Service Funds Sewer Fund EMS
Receivables:
Property taxes 442,546$ -$ 207,907$ -$ -$ -$
Sales tax 2,283,629 1,141,814 - - - -
Occupancy taxes - - - 100,010 - -
Franchise taxes 572,349 - - - - -
Customers - - - - 3,712,290 9,589,341
Court fines 2,463,962 - - - - -
Other 160,557 7,949 - - 364,093 -
Gross receivables 5,923,043 1,149,763 207,907 100,010 4,076,383 9,589,341
Less: allowance for
uncollectible accounts (1,494,718) - (12,474) - (142,885) (4,932,581)
Net receivables 4,428,325$ 1,149,763$ 195,433$ 100,010$ 3,933,498$ 4,656,760$
Governmental Activities Business-type Activities
D. Deferred Inflows and Outflows of Resources
Governmental funds report unavailable revenue in connection with receivables for revenue that is not
considered to be available to liquidate liabilities of the current period. At the end of the current fiscal year,
the various components of unavailable revenue and unavailable revenue reported in the governmental funds
were as follows:
Unavailable
General Fund
Delinquent property taxes receivable 415,993$
Court fines 1,002,833
Total General Fund 1,418,826
Debt Service Fund
Delinquent property taxes receivable 195,433
Total Debt Service Fund 195,433
Total Governmental Funds 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.
Governmental Water/
Activities Sewer EMS Totals
Deferred outflows:
Charge on refunding 392,195$ 5,965$ -$ 398,160$
Related to pensions 6,291,741 617,900 1,566,368 8,476,009
Related to OPEB - SDBF 150,518 14,782 37,473 202,773
Related to OPEB - Retiree
Health Plan 322,282 31,651 80,234 434,167
Total deferred outflow 7,156,736$ 670,298$ 1,684,075$ 9,511,109$
Deferred inflows:
Service concession arrangement 278,698$ -$ -$ 278,698$
Related to pensions 105,049 10,316 26,153 141,518
Related to OPEB - SDBF 276,823 27,187 68,917 372,927
Related to OPEB - Retiree
Health plan 695,222 68,277 173,080 936,579
Total deferred inflow 1,355,792$ 105,780$ 268,150$ 1,729,722$
Business-type Activities
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E. Interfund Balances and Transfers
The composition of interfund balances as of September 30, 2024, is as follows:
Due From Due To Amount Purpose
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 15,214,261$ 236,324$ -$ 15,450,585$
Construction in progress 22,189,761 6,917,581 (14,151,288) 14,956,054
Total capital assets not
being depreciated 37,404,022 7,153,905 (14,151,288) 30,406,639
Capital assets being depreciated:
Buildings and improvements 53,420,797 99,287 14,151,288 67,671,372
Machinery, equipment, and vehicles 16,277,025 3,229,508 - 19,506,533
Street and infrastructure 175,473,306 347,301 - 175,820,607
Total assets being depreciated 245,171,128 3,676,096 14,151,288 262,998,512
Less accumulated depreciation for:
Buildings and improvements (21,750,015) (3,636,002) - (25,386,017)
Machinery, equipment, and vehicles (10,555,924) (1,214,065) - (11,769,989)
Street and infrastructure (56,000,308) (5,564,238) - (61,564,546)
Total accumulated depreciation (88,306,247) (10,414,305) - (98,720,552)
Total capital assets being
depreciated, net 156,864,881 (6,738,209) 14,151,288 164,277,960
Governmental activities capital
assets, net 194,268,903$ 415,696$ -$ 194,684,599$
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Beginning Reclassifications/Ending
Balance Additions Retirements Balance
Business-type activities:
Capital assets, not being depreciated:
Land 2,415,103$ -$ -$ 2,415,103$
Water rights 70,245 - - 70,245
Construction in progress 29,149,047 6,344,377 - 35,493,424
Total capital assets, not being
depreciated 31,634,395 6,344,377 - 37,978,772
Capital assets being depreciated:
Buildings and improvements 3,725,152 - - 3,725,152
Machinery, equipment, and vehicles 7,339,679 923,919 (368,204) 7,895,394
Infrastructure 137,700,969 6,042,480 - 143,743,449
Total assets being
depreciated 148,765,800 6,966,399 (368,204) 155,363,995
Less accumulated depreciation for:
Buildings and improvements (1,437,563) (163,917) - (1,601,480)
Machinery, equipment, and vehicles (6,403,573) (730,168) 368,204 (6,765,537)
Infrastructure (36,597,151) (4,172,993) - (40,770,144)
Total accumulated depreciation (44,438,287) (5,067,078) 368,204 (49,137,161)
Total capital assets being
depreciated, net 104,327,513 1,899,321 - 106,226,834
Business-type activities capital
assets, net 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. Long-Term Debt
The City issues a variety of long-term debt instruments in order to acquire and/or construct major capital
facilities and equipment for governmental activities. These instruments include general obligation bonds,
certificates of obligation, and tax notes. These debt obligations are secured primarily by future property tax
revenues. In some cases, these bonds are also secured by a pledge of net revenues from the utility system,
emergency medical services and economic development sales taxes. However, the amount of the formal
pledge is generally limited to $1,000. Proprietary operating revenues for the year exceeded $43.2 million and
sales tax revenue was $20 million.
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Additionally, certain obligations that were marketed as private placements have been separately identified; however, the terms of these obligations are not significantly different than other obligations and do not have
substantive acceleration clauses. Should the City default on these bonds, any registered owner of the
obligations is entitled to seek a writ of mandamus from a court of proper jurisdiction requiring the City to
make payment.
Changes in long-term debt for the year ending September 30, 2024 are as follows:
Beginning Refunded/Ending Amount Due
Balance Issued Retired Balance Within One Year
Governmental activities:
General Obligation Bonds 46,045,000$ -$ (3,415,000)$ 42,630,000$ 2,845,000$
Certificates of Obligation 24,565,000 19,165,000 (1,455,000) 42,275,000 3,160,000
General Obligation Bonds-
Private Placement 4,745,000 - (980,000) 3,765,000 1,010,000
Premium from Debt 5,133,058 998,613 (368,577) 5,763,094 -
Financing Arrangement 81,921 - (27,307) 54,614 27,307
Compensated Absences 1,259,918 649,767 (503,967) 1,405,718 281,144
Total governmental 81,829,897$ 20,813,380$ (6,749,851)$ 95,893,426$ 7,323,451$
Business-type activities:
General Obligation Bonds 3,095,000$ -$ (560,000)$ 2,535,000$ 595,000$
Certificates of Obligation 22,005,000 - (855,000) 21,150,000 890,000
General Obligation Bonds-Private Placement 430,000 - (215,000) 215,000 215,000
Unamortized Premium 2,086,300 - (131,680) 1,954,620 -
Financing Arrangement 245,764 - (81,921) 163,843 81,921
Compensated Absences 498,709 273,407 (199,484) 572,632 114,526
Total business-type 28,360,773$ 273,407$ (2,043,085)$ 26,591,095$ 1,896,447$
Prior Year Refunding of Debt
The City defeased certain outstanding bonds by placing proceeds of new bonds in irrevocable trusts to
provide for all future debt service payments. Accordingly, the respective trust accounts and liability for the
defeased bonds are not included in the City’s financial statements. As of September 30, 2024, the City does
not have bonds considered defeased and outstanding.
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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$
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Annual future debt service requirements of bonded debt as of September 30, 2024, are as follows:
Governmental activities:
Year Ended
September 30, Principal Interest Total Principal Interest Total
2025 2,845,000$ 1,539,229$ 4,384,229$ 3,160,000$ 1,610,435$ 4,770,435$
2026 2,970,000 1,438,288 4,408,288 3,050,000 1,539,069 4,589,069
2027 3,090,000 1,291,038 4,381,038 1,750,000 1,428,331 3,178,331
2028 3,510,000 1,167,513 4,677,513 1,820,000 1,347,931 3,167,931
2029 3,540,000 1,038,322 4,578,322 1,910,000 1,264,756 3,174,756
2030-2034 14,895,000 3,548,668 18,443,668 10,860,000 5,002,316 15,862,316
2035-2039 7,880,000 1,765,256 9,645,256 11,585,000 2,645,244 14,230,244
2040-2044 3,900,000 588,900 4,488,900 8,140,000 720,275 8,860,275
Total 42,630,000$ 12,377,214$ 55,007,214$ 42,275,000$ 15,558,357$ 57,833,357$
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 660,000 6,996 666,996
Total 3,765,000$ 184,456$ 3,949,456$
Certificates of Obligation
Private Placement Debt
General Obligation Bonds
General Obligation Bonds
Business-type activities:
Year Ended
September 30, Principal Interest Total Principal Interest Total
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$ 28,282,065$
Year Ended
September 30, Principal Interest Total
2025 215,000$ 2,774$ 217,774$
Total 215,000$ 2,774$ 217,774$
Certificates of Obligation
General Obligation Bonds
Private Placement Debt
General Obligation Bonds
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.
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Future minimum payments on the financing arrangements are as follows:
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$ 56,252$ 163,843$ 4,916$ 168,758$
Governmental Activities Business-type Activities
H. Net Pension and Total OPEB Liabilities and Expenses
Amounts are aggregated into a single net pension liability and total OPEB liability, and expenses for certain
columns. Below is the detail of net pension liability and total OPEB liability and expenses for governmental
and business-type activities.
Governmental Water/
Activities Sewer EMS Totals
Net pension liability 16,326,037$ 1,603,351$ 4,064,464$ 21,993,852$
Total OPEB liability:
Due within one year:
TMRS SDBF 12,057$ 1,184$ 2,862$ 16,103$
Retiree health plan 74,450 7,311 18,535 100,296
Total due within one year 86,507 8,495 21,397 116,399
Due in more than one year:
TMRS SDBF 624,415 61,321 155,591 841,327
Retiree health plan 1,590,317 156,184 395,918 2,142,419
Total due in more than one year 2,214,732 217,505 551,509 2,983,746
Total OPEB liability 2,301,239$ 226,000$ 572,906$ 3,100,145$
Governmental Water/
Activities Sewer EMS Totals
Pension expense 3,874,984$ 380,556$ 964,701$ 5,220,241$
OPEB expense:
TMRS SDBF 37,503 3,683 9,337 50,523
Retiree Health Plan 174,665 17,153 43,484 235,302
Total OPEB expense 212,168$ 20,836$ 52,821$ 285,825$
Business-type Activities
Business-type Activities
III. OTHER INFORMATION
A. Retirement Plan
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.
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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
44
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:
Asset Class Target Allocation
Long-Term Expected
Real Rate of Return
(Arithmetic)
Global Equity 35.00%7.70%
Core fixed income 6.00%4.90%
Non-core fixed income 20.00%8.70%
Other Public and Private Markets 12.00%8.10%
Real estate 12.00%5.80%
Hedge Funds 5.00%6.90%
Private Equity 10.00%11.80%
Total 100.0%
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.
45
The below schedule presents the changes in the Net Pension Liability as of December 31, 2023:
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a)(b)(a)-(b)
Balance at 12/31/2022 103,138,378$ 78,352,223$ 24,786,155$
Changes for the year:
Service cost 4,835,113 - 4,835,113
Interest 7,004,394 - 7,004,394
Difference between expected
and actual experience 820,236 - 820,236
Change in assumptions (133,135) - (133,135)
Contributions - employer - 4,384,538 (4,384,538)
Contributions - employee - 1,896,896 (1,896,896)
Net investment income - 9,095,570 (9,095,570)
Benefit payments, including refunds (3,574,272) (3,574,272) -
of employee contributions
Administrative expense - (57,691) 57,691
Other changes - (402) 402
Net changes 8,952,336 11,744,639 (2,792,303)
Balance at 12/31/2023 112,090,714$ 90,096,862$ 21,993,852$
Increase (Decease)
The following presents the net pension liability of the City, calculated using the discount rate of 6.75%, as
well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1-
percentage point lower (5.75%) or 1-percentage point higher (7.75%) than the current rate:
1% Decrease in 1% Increase in
Discount Rate Discount Rate Discount Rate
(5.75%)(6.75%)(7.75%)
Net pension liability 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 $5,220,241. Also, as of September 30,
2024, the City reported deferred outflows of resources and deferred inflows of resources related to pensions
from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual
economic experience 2,429,435$ 37,516$
Changes in actuarial assumptions 10,134 104,002
Difference between projected and actual
investment earnings 1,961,371 -
Contributions subsequent to the measurement date 4,075,069 -
Total 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)
46
B. Other Post-Employment Benefits
The City participates in two defined-benefit other post-employment benefit (OPEB) plans: the Texas
Municipal Retirement System Supplemental Death Benefits Fund (TMRS SDBF), and its own single-employer
retiree health plan. Both are described in detail below.
The total OPEB liabilities of both plans are typically liquidated through the General Fund and Enterprise
Funds.
TMRS Supplemental Death Benefits Fund
Plan Description. The City voluntarily participates in a single-employer other postemployment benefit
(OPEB) plan administered by TMRS. The Plan is a group-term life insurance plan known as the Supplemental
Death Benefits Fund (SDBF). The Plan is established and administered in accordance with the TMRS Act
identically to the City’s pension plan. SDBF includes coverage for both active and retired members, and
assets are commingled for the payment of such benefits. Therefore, the Plan does not qualify as an OPEB
Trust in accordance with paragraph 4 of GASB Statement No. 75.
Benefits Provided. The SDBF provides group-term life insurance to City employees who are active
members in TMRS, including or not including retirees. The City Council opted into this program via an
ordinance, and may terminate coverage under, and discontinue participation in, the SDBF by adopting an
ordinance before November 1 of any year to be effective the following January 1.
Payments from this fund are similar to group-term life insurance benefits and are paid to the designated
beneficiaries upon the receipt of an approved application for payment. The death benefit for active
employees provides a lump-sum payment approximately equal to the employee’s annual salary (calculated
based on the employee’s actual earnings for the 12-month period preceding the month of death). The
death benefit for retirees is considered an other employment benefit and is a fixed amount of $7,500.
Membership in the plan at December 31, 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.
47
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 31,2023
Inflation rate 2.50%
Discount rate 3.77%
Actuarial cost method Entry Age Normal Method
Projected salary increases 3.60% to 11.85% including inflation
Administrative expenses All administrative expenses are paid through the Pension
Trust and accounted for under reporting requirements
under GASB Statement No. 68.
Mortality Rates - Service Retirees 2019 Municipal Retirees of Texas Mortality Tables.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).
Mortality Rates - Disabled Retirees 2019 Municipal Retirees of Texas Mortality Tables with a 4
year set-forward for males and a 3 year set-forward for
females.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.
1% Decrease in 1% Increase in
Discount Rate Discount Rate Discount Rate
(2.77%)(3.77%)(4.77%)
Total SDB OPEB Liability 1,047,274$ 857,430$ 711,542$
48
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 $50,523. Also, as of September 30, 2024,
the City reported deferred outflows and inflows of resources related to the TMRS OPEB from the following
sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and
actual economic experience 15,610$ 41,298$
Changes in actuarial assumptions 172,618 331,629
Contributions subsequent to the measurement date 14,545 -
Total 202,773$ 372,927$
$14,545 reported as deferred outflows of resources related to OPEB resulting from contributions subsequent
to the measurement date will be recognized as a reduction of the Total OPEB liability for the year ending
September 30, 2025. Other amounts reported as deferred outflows and inflows of resources related to the
TMRS OPEB will be recognized in OPEB expense in future periods as follows:
For the Year
Ended September 30,
2025 (24,033)$
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.
49
The City provides post-employment benefits for eligible participants enrolled in City-sponsored plans. The
benefits are provided in the form of an implicit rate subsidy where the City contributes towards the retiree
health premiums before achieving Medicare eligibility. While the Plan offers retiree only rates, a very small
implicit liability still exists. Membership in the plan as of December 31, 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$
50
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.
51
Cibolo Valley Local Government Corporation
The Cibolo Valley Local Government Corporation (CVLGC) is a public, nonprofit corporation organized to aid,
assist, and act on behalf of the cities of Schertz and Cibolo in acquiring, constructing, maintaining, and
operating a water utility system. The participating governments have an ongoing financial responsibility to
fund the operation of the corporation through either purchase of services or by subsidizing the operations.
Payments to the corporation are generally for the purchase of water treatment and for covering the
Corporation’s debt service requirements; they are reflected as “operating expenses” in the water and sewer
fund and totaled $300,000 for the year ended September 30, 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 Contingencies
Tax Increment Financing (the “Zone”)
The City is a principal in the City of Schertz Tax Increment Reinvestment Zone #2, pursuant to Chapter 311
of the Texas Tax Code. Under the terms of the Zone agreement, the City of Schertz, Bexar County, and San
Antonio River Authority are funding infrastructure improvements through tax increment financing to the
Sedona Development Project.
At the time the Zone was created, the property tax base was “frozen” and increment taxes resulting from
the increases to property tax base are being used to finance Zone improvements. The total projected cost is
a combined figure of $45,000,000. Project costs of the developer will be funded up to 100% of the tax
increment generated by the City of Schertz, Bexar County, and San Antonio River Authority (SARA). The
City of Schertz (combined with SARA) have committed up to $32,186,700 of the total $45,000,000. The
Zone has a statutory termination date of December 31, 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.
52
The SEDC Incentive program, authorized by Chapters 501, 502 and 505 of the Texas Local Government
Code, enables the Corporation to fund allowable projects from the collection of one-half of one percent of
sales tax proceeds collected in the City of Schertz. In accordance with state law, the SEDC Incentive Policy
establishes grants and loans for businesses that create Primary Jobs for the following categories: Existing
Businesses (3 years of operation within City), Small Businesses (fewer than 50 full-time jobs or annual sales
less than $10 million), Large Impact Businesses (Up to $100 million in taxable property), and Extra-Large
Businesses (over $100 million in taxable property).
The City and Corporation’s outstanding incentive agreement grants are as follows:
FY 2023-24 Amt. Est. Remaining Grant
SEDC - LGC 501.101 (Bolster Primary Jobs):
Ace Mart 33,985$ -$
Caterpillar Hydra 25,000 25,000
Caterpillar Aquos - 361,559
Schertz RE 25,000 1,633,870
Mile Hi - 2,167,364
Totals 83,985$ 4,187,793$
SEDC - LGC 501.103 (Infrastructure):
Core 5 -$ 350,000$
Kellum - 350,000
Schertz 312 - 2,500,000
Mob - 40,000
Boom Connect - 6,500,000
Schertz Station - 8,000,000
Palapas Johns - 154,100
Freckles - 50,000
Totals -$ 17,944,100$
Service Concession Arrangement
The City entered into an agreement with Young Men’s Christian Association of Greater San Antonio
(“YMCA”), under which YMCA will operate and collect user fees from the Natatorium and Outdoor Pools
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 $278,698 for the present value of
maintenance costs estimated over the life of the Service Concession arrangement. The balance of these two
amounts is recorded as a deferred inflow of resources.
Litigation
The City is the subject of various claims and litigation that have arisen in the course of its operations.
Management is of the opinion that the City’s liability in these cases, if decided adversely to the City, will not
have a material effect on the City’s financial position.
53
Cibolo Creek Municipal Authority
The Cibolo Creek Municipal Authority (CCMA) provides sewage treatment for the area in and around the City.
In fiscal year 2014, the City entered into an agreement with CCMA to construct a sewage treatment facility
in the southern portion of the City to primarily serve citizens of the City but also neighboring Cities and
future development. Because the City would be the primary customer at this time, the agreement stipulates
that the City will pay all future debt service on the bonds issued by CCMA to finance the project. During the
fiscal year the City of Cibolo joined the CCMA and will begin sharing costs of the project. Should additional
members join, the City’s share of the costs would be reduced.
Future commitments to CCMA are as follows:
Year Ended
September 30,
2025 714,050$
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$
54
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.
THIS PAGE LEFT BLANK INTENTIONALLY
REQUIRED
SUPPLEMENTARY INFORMATION
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 587,407 587,407 897,538 310,131
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 1,370,411 1,302,905 67,506
Total Public Safety 23,553,629 25,000,444 24,563,740 436,704
Public environment:
Streets 2,720,161 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
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
55
Variance With
Final Budget
Original Final Actual Positive
Budget Budget Amounts (Negative)
EXPENDITURES (CONTINUED)
Administration:
Information technology 3,355,379 3,382,118 3,378,929 3,189
Human resources 854,880 914,880 887,441 27,439
Finance 792,929 792,929 775,346 17,583
Purchasing & asset management 328,466 328,466 250,623 77,843
Building maintenance 2,062,642 2,162,134 2,123,596 38,538
Fleet service 1,486,000 1,790,387 1,944,815 (154,428)
Interfund charges (3,195,837) (3,195,837) (3,193,251) (2,586)
Total Administration 5,684,459 6,175,077 6,167,499 7,578
Total Expenditures 44,564,206 47,322,463 46,040,432 1,282,031
Excess of revenues over expenditures (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 1,553,996
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$ 15,846,289$ 17,947,703$ 2,101,414$
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
GENERAL FUND
BUDGET AND ACTUAL
FOR THE YEAR ENDED SEPTEMBER 30, 2024
56
Variance With
Final Budget
Original Final Actual Positive
Budget Budget Amounts (Negative)
REVENUES
Taxes 7,092,000$ 7,092,000$ 6,698,059$ (393,941)$
Investment income 1,315,000 1,315,000 1,868,124 553,124
Miscellaneous - - 1,101 1,101
Total Revenues 8,407,000 8,407,000 8,567,284 159,183
EXPENDITURES
Current:
General government 3,716,870 3,716,870 384,286 3,332,584
Administration 618,183 618,183 557,505 60,678
Total Expenditures 4,335,053 4,335,053 941,791 3,393,262
Excess of revenues over expenditures 4,071,947 4,071,947 7,625,493 3,553,546
OTHER FINANCING SOURCES (USES)
Transfers out - - (298,131) (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 37,067,781$ 37,067,781$ 40,323,196$ 3,255,415$
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
57
58
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.
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$ 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%
FOR THE YEAR ENDED SEPTEMBER 30, 2024
TEXAS MUNICIPAL RETIREMENT SYSTEM
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
CITY OF SCHERTZ, TEXAS
59
2019 2018 2017 2016 2015 2014
3,421,878$ 3,301,265$ 3,073,538$ 2,855,745$ 2,724,337$ 2,558,743$
4,898,478 4,505,483 4,111,517 3,763,562 3,556,428 3,245,266
(108,478) 34,393 416,585 139,216 120,434 (122,286)
263,015 - - - 59,193 -
(2,244,447) (1,914,159) (1,843,774) (1,581,272) (1,570,211) (1,068,487)
6,230,446 5,926,982 5,757,866 5,177,251 4,890,181 4,613,236
71,981,331 66,054,349 60,296,483 55,119,232 50,229,051 45,615,815
78,211,777$ 71,981,331$ 66,054,349$ 60,296,483$ 55,119,232$ 50,229,051$
3,163,340$ 3,033,936$ 2,793,644$ 2,627,335$ 2,542,565$ 2,403,929$
1,380,585 1,326,518 1,232,232 1,152,864 1,095,260 1,077,097
8,093,416 (1,540,890) 5,999,805 2,602,572 53,742 1,841,586
(2,244,447) (1,914,159) (1,843,774) (1,581,272) (1,570,211) (1,068,487)
(45,681) (29,768) (31,080) (29,385) (32,727) (19,219)
(1,373) (1,554) (1,575) (1,583) (1,616) (1,580)
10,345,840 874,083 8,149,252 4,770,531 2,087,013 4,233,326
52,293,723 51,419,640 43,270,388 38,499,857 36,412,844 32,179,518
62,639,563 52,293,723 51,419,640 43,270,388 38,499,857 36,412,844
15,572,214$ 19,687,608$ 14,634,709$ 17,026,095$ 16,619,375$ 13,816,207$
80.09%72.65%77.84%71.76%69.85%72.49%
19,722,641$ 18,896,766$ 17,603,310$ 16,478,620$ 15,648,114$ 15,389,154$
78.96%104.19%83.14%103.32%106.21%89.78%
60
Fiscal Year Ended September 30,2024 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%
Valuation Date:
Methods and Assumptions Used to Determine Contribution Rates:
Actuarial cost method Entry age normal
Amortization method Level percentage of payroll, closed
Remaining amortization period 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
Mortality
Other Information:There were no benefit changes during the year.
NOTES TO SCHEDULE OF CONTRIBUTIONS
Actuarially determined contribution rates are calculated as of December 31st and become
effective on January 1st, 13 months and a day later.
Experience-based table of rates that are specific to the
City's plan of benefits. Last updated for the 2013 valuation
pursuant to an experience study of the period ending 2022.
Post-retirement:2019 Municpal Retirees of Texas Mortality
Tables. The rates are projected on a fully generational basis
with scale UMP. Pre-retirement: PUB(10) mortality tables,
with the Public Safety table used for males and the General
Employee table used for females. The rates are projected
on a fully generational basis with scale UMP.
CITY OF SCHERTZ, TEXAS
SCHEDULE OF EMPLOYER CONTRIBUTIONS
TEXAS MUNICIPAL RETIREMENT SYSTEM
FOR THE YEAR ENDED SEPTEMBER 30, 2024
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
Measurement Date December 31,2023 2022 2021 2020
Total OPEB liability
Service cost 37,901$ 73,900$ 70,429$ 50,554$
Interest on total OPEB liability 31,378 21,768 21,248 22,915
Differences in actuarial experience (5,407) (7,347) (1,360) (4,382)
Change of assumptions 45,858 (462,756) 42,012 158,118
Benefit payments (16,243) (15,290) (11,739) (4,213)
Net change in total OPEB liability 93,487 (389,725) 120,590 222,992
Total OPEB liability, beginning 763,943 1,153,668 1,033,078 810,086
Total OPEB liability, ending (a)857,430$ 763,943$ 1,153,668$ 1,033,078$
Covered-employee payroll 27,072,303$ 25,497,946$ 23,477,118$ 21,063,794$
Total OPEB liability as a percentage of
covered-employee payroll 3.17%3.00%4.91%4.90%
Valuation Date:
Methods and Assumptions Used to Determine Contribution Rates:
Inflation
Salary increases
Discount rate
Administrative expenses
Mortality rates - service retirees
Mortality rates - disabled retirees
Other information
FOR THE YEAR ENDED SEPTEMBER 30, 2024
SCHEDULE OF CHANGES IN TMRS OTHER POST-EMPLOYMENT BENEFIT LIABILITY
CITY OF SCHERTZ, TEXAS
AND RELATED RATIOS
All administrative expenses are paid through
the Pension Trust and accounted for under
reporting requirements under GASB Statement
No. 68.
2.50%
3.50% to 11.50% including inflation
4.05%
2019 Municipal Retirees of Texas Mortality
Tables. The rates are projected on a fully
generational basis with scale UMP.
2019 Municipal Retirees of Texas Mortality
Tables with a 4 year setforward for males and a
3 year set-forward for females.In addition, a
3.5% and 3%minimum mortality rate will be
applied to reflect the impairment for younger
members who become disabled for males and
females, respectively. The rates are projected
on a fully generational basis by Scale UMP to
account for future mortality improvements
subject to the 3% floor.
No assets are accumulated in a trust that
meets the criteria in paragraph 4 of Statement
No. 75 to pay related benefits.
Actuarially determined contribution rates are calculated as of December 31st and become effective on
January 1st, 13 months and a day later.
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
63
2019 2018 2017
33,528$ 37,794$ 29,926$
26,904 21,182 20,123
(105,282) 86,276 -
148,494 (54,027) 57,257
(3,945) (3,779) (3,521)
99,699 87,446 103,785
710,387 622,941 519,156
810,086$ 710,387$ 622,941$
19,722,641$ 18,896,766$ 17,603,310$
4.11%3.76%3.54%
64
Measurement Date December 31,2023 2022 2021 2020
Total OPEB liability
Service cost 207,231$ 230,479$ 161,830$ 141,084$
Interest on total OPEB liability 93,119 48,122 50,064 60,561
Difference in actuarial experience 28,527 (4,764) 134,106 4,341
Change of assumptions (231,625) (495,992) (191,684) 161,146
Benefit payments (100,296) (64,389) (88,569) (64,499)
Net change in total OPEB liability (3,044) (286,544) 65,747 302,633
Total OPEB liability, beginning 2,245,759 2,532,303 2,466,556 2,163,923
Total OPEB liability, ending (a)2,242,715$ 2,245,759$ 2,532,303$ 2,466,556$
Covered-employee payroll 26,795,229$ 25,255,936$ 23,290,477$ 20,870,983$
Total OPEB liability as a percentage of
covered-employee payroll 8.37%8.89%10.87%11.82%
Valuation Date:
Methods and Assumptions Used to Determine Contribution Rates:
Actuarial cost method
Discount rate
Inflation
Salary increases
Demographic assumptions
Mortality
Health care trend rates
Participation rates
Other information
LIABILITY AND RELATED RATIOS
CITY OF SCHERTZ, TEXAS
SCHEDULE OF CHANGES IN CITY RETIREE HEALTH OTHER POST-EMPLOYMENT BENEFIT
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.
Initial rate of 7.20% declining to an ultimate rate of
4.25% after 15 years.
NOTES TO SCHEDULE
December 31, 2023
Based on the 2023 experience study conducted for
the Texas Municipal Retirement System (TMRS).
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.
FOR THE YEAR ENDED SEPTEMBER 30, 2024
No assets are accumulated in a trust that meets the
criteria in paragraph 4 of Statement No.75 to pay
related benefits.
For all non-Medicare retirees,25%if retiring from
age 50 to 64.
The discount rate changed from 4.05%as of
December 31, 2022 to 3.77%as of December 31,
2023.
Individual entry-age
3.77% as of December 31, 2023
2.50%
3.60% to 11.85% including inflation
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
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 - Nonmajor Governmental Funds
Hotel Occupancy Fund - will account for proceeds of hotel occupancy taxes to be used strictly for those
kinds of programs that promote the tourism industry.
Park Fund - will account for revenues from developers' fees (in lieu of park land dedication), grants, and
donations and is designed to monitor and manage improvement of the City’s park system.
Tree Mitigation Fund - will account for revenues from permits, grants and donations to preserve and replace
trees in the City.
Treasury Forfeitures Fund - will account for revenue received from drug related cases in conjunction with other law enforcement agencies within the jurisdiction of the U.S. Treasury department.
Justice Forfeitures Fund - will account for revenue received from drug related cases in conjunction with
other law enforcement agencies within the jurisdiction of the US Department of Justice.
State Forfeitures Fund - will account for revenue received from drug related cases in conjunction with other
law enforcement agencies within the jurisdiction of the State Forfeiture Program.
Grant Fund - will account for revenue and expenditures related to federal and state grant programs.
Library Advisory Board - to account for certain fees generated at the library to be used by the Board for general improvements to the Library.
Historical Committee Fund - will account for funds received for the preservation of the history of the City.
Capital Recovery Roadways Fund - to account for a fee assessed for capital recovery on new construction.
2024 2023
ASSETS
Cash and cash equivalents 14,004,790$ 16,338,407$
Investments 2,499,161 2,438,934
Receivables (net of allowances)
Taxes 3,293,402 3,352,850
Accounts and other 1,134,923 1,840,329
Due from other funds 1,376,444 644,353
Inventory 285,571 342,248
Restricted assets:
Cash and cash equivalents 110,791 598,112
Total Assets 22,705,082 25,555,233
LIABILITIES
Accounts payable 2,446,518 3,522,925
Accrued salaries and benefits 777,467 529,285
Customer deposits 33,027 6,652
Due to other governments 50,043 31,357 Due to other funds - 91,499
Unearned revenues 31,498 52,765
Total Liabilities 3,338,553 4,234,483
DEFERRED INFLOWS OF RESOURCESUnavailable revenues 1,418,826 2,083,134
Total Deferred Inflows of Resources 1,418,826 2,083,134
FUND BALANCES
Nonspendable for:
Inventory 285,571 342,248
Restricted for:
Police and public safety/municipal court 409,637 355,469
Municipal court 715,579 786,902
PEG capital fees 136,899 884,536
Animal control 47,461 44,690
Scholarships 149,097 149,097
Committed for:
Civic Center/CIED 1,260,939 1,155,078
Assigned for:
Property replacement 1,007,626 954,151
Subsequent year's budget 2,596,149 2,564,504
Unassigned 11,338,745 12,000,941
Total Fund Balances 17,947,703 19,237,616
Total Liabilities, Deferred inflows of Resources,
and Fund Balances 22,705,082$ 25,555,233$
CITY OF SCHERTZ, TEXAS
COMPARATIVE BALANCE SHEETS
GENERAL FUND
SEPTEMBER 30, 2024
(WITH COMPARATIVE TOTALS FOR 2023)
67
2024 2023
REVENUES
Taxes 34,041,974$ 33,136,640$
Permits and fees 2,627,370 2,077,759
Service fees 2,339,769 2,124,689
Fines and fees 366,823 448,805
Intergovernmental 2,940,640 2,319,760
Investment earnings 1,251,166 1,050,211
Miscellaneous 897,538 636,278
Total Revenues 44,465,280 41,794,142
EXPENDITURES
Current:
General government 7,106,636 6,943,385
Public safety 23,365,331 19,492,971
Public environment 2,518,012 1,782,809
Parks and recreation 4,161,603 3,134,333
Cultural 1,429,406 1,277,825
Administration 5,688,426 4,538,699
Capital outlay 1,771,018 1,584,157
Total Expenditures 46,040,432 38,754,179
Excess (Deficiency) of Revenues Over Expenditures (1,575,152) 3,039,963
OTHER FINANCING SOURCES (USES)
Transfers in 285,239 -
Transfers out - (869,246)
Total Other Financing Sources (Uses)285,239 (869,246)
NET CHANGE IN FUND BALANCE (1,289,913) 2,170,717
FUND BALANCES - BEGINNING 19,237,616 17,066,899
FUND BALANCES - ENDING 17,947,703$ 19,237,616$
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED 2023)
CITY OF SCHERTZ, TEXAS
COMPARATIVE SCHEDULES OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
GENERAL FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2024
68
2024 2023
ASSETS
Cash and cash equivalents 36,851,691$ 29,560,533$
Investments 2,330,549 2,253,041
Receivables, net of allowances:
Taxes 1,141,814 1,183,053
Accounts and other 7,949 7,949
Total Assets 40,332,003 33,004,576
LIABILITIES
Accounts payable 8,807 8,742
Total Liabilities 8,807 8,742
FUND BALANCES
Restricted for:
Economic development 40,323,196 32,995,834
Total Fund Balances 40,323,196 32,995,834
Total Liabilities and Fund Balances 40,332,003$ 33,004,576$
CITY OF SCHERTZ, TEXAS
COMPARATIVE BALANCE SHEETS
ECONOMIC DEVELOPMENT CORPORATION
SEPTEMBER 30, 2024
(WITH COMPARATIVE TOTALS FOR 2023)
69
2024 2023
REVENUES
Taxes 6,698,059$ 6,548,941$
Investment earnings 1,868,124 1,262,346
Miscellaneous 1,101 -
Total Revenues 8,567,284 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 40,323,196$ 32,995,834$
(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED 2023)
CITY OF SCHERTZ, TEXAS
COMPARATIVE SCHEDULES OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
ECONOMIC DEVELOPMENT CORPORATION
FOR THE YEAR ENDED SEPTEMBER 30, 2024
70
2024 2023
ASSETS
Cash and cash equivalents 2,029,913$ 1,159,250$
Receivables, net of allowances:
Taxes 195,433 164,420
Total Assets 2,225,346 1,323,670
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues 195,433 209,812
Total Deferred Inflows of Resources 195,433 209,812
FUND BALANCES
Restricted for:
Debt service 2,029,913 1,113,858
Total Fund Balances 2,029,913 1,113,858
Total Deferred Inflows of Resources and Fund
Balances 2,225,346$ 1,323,670$
CITY OF SCHERTZ, TEXAS
COMPARATIVE BALANCE SHEETS
DEBT SERVICE FUND
SEPTEMBER 30, 2024
(WITH COMPARATIVE TOTALS FOR 2023)
71
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 8,602,747 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$
(WITH COMPARATIVE ACTUAL TOTALS FOR 2023)
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
72
2024 2023
ASSETS
Cash and cash equivalents 41,622,628$ 23,012,099$
Total Assets 41,622,628 23,012,099
LIABILITIES
Accounts payable 78,995 253,110
Retainage payable - 5,807
Total Liabilities 78,995 258,917
FUND BALANCES
Restricted for:
Capital improvement 37,654,911 19,318,324
Committed for:
Capital projects 3,888,722 3,434,858
Total Fund Balances 41,543,633 22,753,182
Total Liabilities and Fund Balance 41,622,628$ 23,012,099$
CITY OF SCHERTZ, TEXAS
COMPARATIVE BALANCE SHEETS
CAPITAL PROJECTS FUND
SEPTEMBER 30, 2024
(WITH COMPARATIVE TOTALS FOR 2023)
73
2024 2023
REVENUES
Intergovernmental -$ 201,621$
Investment earnings 1,379,778 1,601,296
Total Revenues 1,379,778 1,802,917
EXPENDITURES
Capital outlay 2,497,812 21,307,128
Debt service:
Bond issue costs 163,613 -
Total Expenditures 2,661,425 21,307,128
Excess (Deficiency) of Revenues Over Expenditures (1,281,647) (19,504,211)
OTHER FINANCING SOURCES (USES)
Issuance of debt 19,165,000 -
Premium on issuance of debt 998,613 -
Transfers in 12,892 850,880
Transfers out (104,407) (3)
Total Other Financing Sources (Uses)20,072,098 850,877
NET CHANGE IN FUND BALANCE 18,790,451 (18,653,334)
FUND BALANCES - BEGINNING 22,753,182 41,406,516
FUND BALANCES - ENDING 41,543,633$ 22,753,182$
(WITH COMPARTIVE TOTALS FOR THE YEAR ENDED 2023)
CITY OF SCHERTZ, TEXAS
COMPARATIVE SCHEDULES OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
CAPITAL PROJECTS FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2024
74
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$ 542,123$ 1,238,872$ 201,329$
Special Revenue Funds
CITY OF SCHERTZ, TEXAS
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2024
75
Capital
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
- - (266,494) - - - (266,494)
230,722 79,027 (266,494) 75,962 25,431 4,654,797 10,218,127
230,722$ 79,027$ 377,859$ 75,962$ 26,868$ 4,654,797$ 10,867,417$
Special Revenue Funds
76
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 1,004,098 455,113 618,108 195,925
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$
Special Revenue Funds
CITY OF SCHERTZ, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2024
77
Capital
Projects 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) 4,707 378,480 (273) (4,002) 1,643,135 4,024,495
239,435 74,320 (644,974) 76,235 29,433 3,011,662 6,193,632
230,722$ 79,027$ (266,494)$ 75,962$ 25,431$ 4,654,797$ 10,218,127$
Special Revenue Funds
78
Variance With
2024 Final Budget 2023
Original Final Actual Positive Actual
Budget Budget Amounts (Negative)Amounts
REVENUES
Occupancy tax 800,000$ 800,000$ 849,265$ 49,265$ 1,059,808$
Investment earnings 101,500 101,500 154,833 53,333 92,825
Total Revenues 901,500 901,500 1,004,098 102,598 1,152,633
EXPENDITURES
Current:
General government 180,600 137,600 52,318 85,282 107,656
Administration 80,265 80,265 80,265 - 69,915
Capital outlay - 43,000 48,071 (5,071) 5,266
Total Expenditures 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 - 1,646,618
FUND BALANCE - ENDING 3,257,049$ 3,257,049$ 3,439,858$ 182,809$ 2,616,414$
(WITH COMPARATIVE ACTUAL TOTALS FOR 2023)
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
HOTEL OCCUPANCY FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2024
79
Variance With
2024 Final Budget 2023
Original Final Actual Positive Actual
Budget Budget 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 87,010 87,010 87,010 - 261,521
FUND BALANCE - ENDING 87,010$ 87,010$ 542,123$ 455,113$ 87,010$
(WITH COMPARATIVE ACTUAL TOTALS FOR 2023)
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
80
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 -708,060
FUND BALANCE - ENDING 709,443$ 709,443$ 1,235,372$ 525,929$ 698,693$
(WITH COMPARATIVE ACTUAL TOTALS FOR 2023)
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
81
2024 2023
REVENUES
Fines and fees 195,925$ -$
Total Revenues 195,925 -
EXPENDITURES
Total Expenditures - -
NET CHANGE IN FUND BALANCE 195,925 -
FUND BALANCE - BEGINNING 5,404 5,404
FUND BALANCE - ENDING 201,329$ 5,404$
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES
TREASURY FORFEITURES FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2024
(WITH COMPARATIVE TOTALS FOR 2023)
AND CHANGES IN FUND BALANCE
82
2024 2023
REVENUES
Fines and fees 23,519$ 141,539$
Investment earnings 11,312 8,305
Total Revenues 34,831 149,844
EXPENDITURES
Current:
Public safety 43,544 44,982
Total Expenditures 43,544 44,982
NET CHANGE IN FUND BALANCE (8,713) 104,862
FUND BALANCE - BEGINNING 239,435 134,573
FUND BALANCE - ENDING 230,722$ 239,435$
(WITH COMPARATIVE TOTALS FOR 2023)
FOR THE YEAR ENDED SEPTEMBER 30, 2024
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES
JUSTICE FORFEITURES FUND
AND CHANGES IN FUND BALANCE
83
2024 2023
REVENUES
Fines and fees 4,707$ 69,541$
Total Revenues 4,707 69,541
EXPENDITURES
Total Expenditures - -
NET CHANGE IN FUND BALANCE 4,707 69,541
FUND BALANCE - BEGINNING 74,320 4,779
FUND BALANCE - ENDING 79,027$ 74,320$
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES
STATE FORFEITURES FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2024
(WITH COMPARATIVE TOTALS FOR 2023)
AND CHANGES IN FUND BALANCE
84
Variance With
2024 Final Budget 2023
Original Final Actual Positive Actual
Budget Budget Amounts (Negative)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) (273) 7,727 6,666
FUND BALANCE - BEGINNING 76,235 76,235 76,235 - 69,569
FUND BALANCE - ENDING 68,235$ 68,235$ 75,962$ 7,727$ 76,235$
(WITH COMPARATIVE ACTUAL TOTALS FOR 2023)
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
85
Variance With
2024 Final Budget 2023
Original Final Actual Positive Actual
Budget Budget Amounts (Negative)Amounts
REVENUES
Sale of merchandise 1,000$ 1,000$ 215$ (785)$ 199$
Miscellaneous - - - - 2,244
Total Revenues 1,000 1,000 215 (785) 2,443
EXPENDITURES
Current:
General government 9,250 9,250 4,217 5,033 9,159
Total Expenditures 9,250 9,250 4,217 5,033 9,159
Excess of Revenues Over Expenditures (8,250) (8,250) (4,002) 4,248 (6,716)
OTHER FINANCING SOURCES (USES)
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$ 25,431$ (6,502)$ 29,433$
(WITH COMPARATIVE ACTUAL TOTALS FOR 2023)
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
86
2024 2023
REVENUES
Service fees 1,483,039$ 661,078$
Investment earnings 217,401 133,917
Total Revenues 1,700,440 794,995
EXPENDITURES
Capital outlay 57,305 342,687
Total Expenditures 57,305 342,687
NET CHANGE IN FUND BALANCE 1,643,135 452,308
FUND BALANCE - BEGINNING 3,011,662 2,559,354
FUND BALANCE - ENDING 4,654,797$ 3,011,662$
CITY OF SCHERTZ, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES
CAPITAL RECOVERY ROADWAYS
FOR THE YEAR ENDED SEPTEMBER 30, 2024
(WITH COMPARATIVE TOTALS FOR 2023)
AND CHANGES IN FUND BALANCE
87
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
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 20,870,671
Total Business-Type Activities Net
Position 73,869,127$ 79,947,701$ 101,707,789$ 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$
NET POSITION BY COMPONENT
CITY OF SCHERTZ, TEXAS
Fiscal Year
(UNAUDITED)
(ACCRUAL BASIS OF ACCOUNTING)LAST TEN FISCAL YEARS
88
TABLE 1
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$ 121,781,341$ 137,531,279$ 153,547,043$ 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$ 173,541,652$
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$ 345,135,343$ 373,837,780$
Fiscal Year
89
2015 2016 2017 2018
Expenses
Governmental activities:General government 6,443,227$ 6,557,778$ 6,253,926$ 7,421,918$
Public safety 10,836,712 12,141,968 13,061,120 13,899,278
Public environment 3,876,644 4,147,653 4,460,540 4,930,723 Parks and recreation 2,164,604 2,034,964 2,859,974 2,707,292
Cultural 892,194 954,871 1,004,747 1,042,085
Health 470,468 570,204 776,494 724,780 Administration 1,845,877 1,954,276 3,052,102 3,067,983 Interest and other fees 2,226,635 2,240,783 2,355,714 2,125,687
Total Governmental Activities Expenses 28,756,361 30,602,497 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 6,110,407
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 1,840,547 1,507,252 874,737 1,013,698
Public safety 2,603,476 2,415,537 4,131,548 4,104,911 Public environment - - - -
Parks and recreation 794,003 788,727 544,460 640,231
Cultural 325,178 326,079 330,412 313,668 Health 26,744 30,308 29,742 27,930
Operating grants and contributions 336,252 342,485 552,878 776,942
Capital grants and contributions 5,509,530 6,227,664 10,043,483 4,744,489
Total Governmental
Activities Program Revenues 11,435,730 11,638,052 16,507,260 11,621,869
Business-type activities:
Charges for services:Water and sewer 20,700,369 22,003,794 25,390,713 27,099,237
EMS 4,415,126 5,921,223 6,366,894 6,092,559
Capital grants and contributions 4,158,552 2,831,126 6,111,474 3,132,348
Total Business-Type Activities
Program Revenues 29,274,047 30,756,143 37,869,081 36,324,144
Total Primary Government Program Revenues 40,709,777 42,394,195 54,376,341 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)$
Fiscal Year
CITY OF SCHERTZ, TEXAS
CHANGE IN NET POSITION LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(UNAUDITED)
90
TABLE 2
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 8,234,500 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)$ (8,022,559)$ (34,037,953)$
Fiscal Year
91
2015 2016 2017 2018
General Revenues and
Other Changes in Net PositionGovernmental 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 27,972,495 30,014,230 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
Fiscal Year
(UNAUDITED)
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
CHANGE IN NET POSITION
CITY OF SCHERTZ, TEXAS
92
TABLE 2
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 56,412,996 62,740,390
5,869,670 902,503 15,729,584 16,015,764 30,975,153 15,773,932
4,972,125 6,853,914 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$
Fiscal Year
93
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.
CITY OF SCHERTZ, TEXAS
LAST TEN FISCAL YEARS
Fiscal Year Fiscal Year
(UNAUDITED)
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
FUND BALANCES OF GOVERNMENTAL FUNDS
94
TABLE 3
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$ 17,947,703$
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$ 74,116,907$ 63,910,051$ 94,929,261$
Fiscal Year
95
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) (834,371) (429,404) (758,302)
Net Other Financing Sources (Uses)202,765 11,339,162 9,261,330 5,051,603
Net Change in Fund Balances 3,710,599$ 7,884,951$ 10,084,663$ 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.
Fiscal Year
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
CITY OF SCHERTZ, TEXAS
(UNAUDITED)(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
LAST TEN FISCAL YEARS
96
TABLE 4
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%
Fiscal Year
97
Fiscal Property Sales & Use Franchise Mixed
Year Tax Tax Tax 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
CITY OF SCHERTZ, TEXAS
GOVERNMENTAL FUNDS TAX REVENUES BY SOURCE
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING) (UNAUDITED)
98
TABLE 5
Hotel
Bingo Occupancy Total
103$ 563,734$ 27,348,297$
1 544,870 28,865,727
31 499,466 29,720,578
11 520,424 32,632,704
24 514,679 34,590,032
24 268,946 36,802,937
24 518,921 41,150,111
24 804,132 43,905,194
- 1,059,808 48,455,688
- 849,265 50,515,742
99
TABLE 6
FiscalYear Total Water &Water & Water & Sewer
Ended Sewer Consumption Sewer Initial Rate PerSeptember 30, (In Gallons)Base Rate 1,000 Gallons
2024 2,425,608,700 42.35 8.41 2023 2,363,742,000 40.85 8.13 2022 1,700,418,300 39.04 7.79
2021 1,629,336,300 38.15 6.97
2020 1,982,664,200 38.15 6.97
2019 1,622,930,500 37.15 6.84
2018 1,583,312,400 35.61 6.53
2017 1,583,462,300 34.35 6.21
2016 1,509,250,000 30.11 5.73
2015 1,472,948,300 26.54 5.43
*Source: Schertz Utility System
CITY OF SCHERTZ, TEXAS
TOTAL WATER AND SEWER CONSUMPTION AND RATES
LAST TEN FISCAL YEARS
100
TABLE 7
TAXPAYERS
Total
Water
Consumption
(In Gallons)Rank
Percentage of
Total City
Water
Consumption
Total
Water
Consumption
(In Gallons)Rank
Percentage of
Total City
Water
Consumption
City of Cibolo 15,596,800 1 0.64%
WHC Schertz Apts, LLC 14,016,600 2 0.47%
Ranger Excavating 11,362,000 3 0.45%
Crossvine Master Community 10,860,900 4 0.39%
Sycamore Creek Apartments 9,379,300 5 0.33%9,908,400 4
Comal ISD School 8,121,500 8 0.33%
Pecan Grove TxLLC 8,072,100 9 0.33%7,717,900 8 0.50%
Homestead Residential Master 7,712,300 10 0.32%0.00%
Caterpillar Inc 15,705,500 1 1.01%
Schertz 1518 11,373,500 2 0.73%
Beck Readymix 9,916,200 3 0.64%
SYSCO 8,754,100 5 0.56%
Big Time Management Properties 8,497,800 6 0.55%
Sebastian Apartments 8,002,100 7 0.52%
City of Schertz (Ball Park)7,271,400 9 0.47%
Caterpillar Inc 6,426,400 10 0.41%
TOTAL 85,121,500 3.27%93,573,300 5.39%
Total City Water Consumption 2,425,608,700 1,552,387,300
*Source: Schertz Utility System
2024 2015
CITY OF SCHERTZ, TEXAS
PRINCIPAL WATER AND SEWER CONSUMERS
CURRENT YEAR AND NINE YEARS AGO
101
TABLE 8
Schertz-
Cibolo-Fiscal Basic Debt Universal Comal
Year Rate Service Total City ISD ISD20240.3324 0.1548 0.4872 1.1392 1.2746
2023 0.3470 0.1480 0.4950 1.3246 1.2746 2022 0.3517 0.1604 0.5121 1.3950 1.2920
2021 0.3470 0.1651 0.5121 1.4106 1.2757
2020 0.3496 0.1650 0.5146 1.4200 1.3200
2019 0.3497 0.1649 0.5146 1.4900 1.3200
2018 0.3248 0.1662 0.4910 1.4900 1.3900
2017 0.3168 0.1743 0.4911 1.4700 1.3900
2016 0.3159 0.1752 0.4911 1.4900 1.3900
2015 0.3164 0.1810 0.4974 1.4900 1.3900
Community
Fiscal Bexar Hospital River College Comal GuadalupeYearCountyDistrictAuthorityDistrictCountyCounty
2024 0.2763 0.2762 0.0184 0.1492 0.2262 0.2731
2023 0.2624 0.2762 0.0184 0.1492 0.2847 0.3439
2022 0.2763 0.2762 0.0186 0.1492 0.3140 0.3799
2021 0.2624 0.2762 0.0186 0.1492 0.3224 0.3854
2020 0.2774 0.2762 0.0186 0.1492 0.3224 0.3319
2019 0.2774 0.2762 0.0186 0.1492 0.2952 0.3319
2018 0.2928 0.2762 0.0173 0.1492 0.3078 0.3799
2017 0.2928 0.2762 0.0173 0.1492 0.2928 0.3851
2016 0.2929 0.2762 0.0173 0.1492 0.2929 0.3851
2015 0.2929 0.2762 0.0178 0.1492 0.2929 0.3941
*Source: Guadalupe, Bexar, and Comal Appraisal Districts
Overlapping CountiesBexar
City Direct Rates Overlapping School Districts
CITY OF SCHERTZ, TEXAS
DIRECT AND OVERLAPPING PROPERTY TAX RATES
LAST TEN FISCAL YEARS (UNAUDITED)
102
TABLE 9
Percentage Percentage
of of
Total City Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
SYSCO Central Texas 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 LP 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
2024 2015
CITY OF SCHERTZ, TEXAS
PRINCIPAL PROPERTY OF TAX PAYERS
CURRENT YEAR AND NINE YEARS AGO
103
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TABLE 10
Fiscal Year Taxes Levied Collections In
Ended for the % of Subsequent % ofSeptember 30,Fiscal Year Amount Levy Years Amount Levy
2024 28,354,039$ 28,023,427$ 98.83%- 28,023,427$ 98.83%2023 26,144,518 25,757,953 98.52%57,110 25,815,063 98.74%
2022 22,951,478 22,775,565 99.23%110,107 22,885,672 99.71%
2021 22,011,090 21,787,625 98.98%24,329 21,811,954 99.10%
2020 20,854,329 20,758,493 99.54%82,648 20,841,141 99.94%
2019 19,922,568 19,825,244 99.51%91,224 19,916,468 99.97%
2018 18,010,824 17,899,825 99.38%74,732 17,974,557 99.80%
2017 17,356,822 17,241,556 99.34%74,366 17,314,231 99.75%
2016 16,238,180 16,160,248 99.52%59,084 16,218,083 99.88%
2015 14,793,867 14,738,760 99.63%45,622 14,783,490 99.93%
Collected Within Total CollectionsFiscal Year of Levy To Date
CITY OF SCHERTZ, TEXAS
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS(UNAUDITED)
104
FiscalYear TaxableEndedValue 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.
CITY OF SCHERTZ, TEXAS
TAXABLE ASSESSED VALUE
LAST TEN FISCAL YEARS(UNAUDITED)
105
TABLE 11
Total Taxable TotalTax-Exempt Other Assessed Direct
Property Property 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
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
CITY OF SCHERTZ, TEXAS
Governmental Activities Business-Type Activities
LAST TEN FISCAL YEARS
RATIOS OF OUTSTANDING DEBT BY TYPE
107
TABLE 12
General Total Percent
Obligation Financing Tax Primary of Gross Per
Bonds Arrangement Notes Government Income 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
Business-Type Activities
108
Less:Percentage of
General Certificates Amounts Actual Taxable
Fiscal Obligation of Available for Value of Per
Year Bonds Obligation Debt Service Total Property 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
General Bonded Debt Outstanding
CITY OF SCHERTZ, TEXAS
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
109
TABLE 13
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 14
Estimated
Estimated Share of
Debt Percentage Overlapping
Governmental Unit Outstanding Applicable*Debt
Debt repaid with property taxes:
Alamo CCD 809,962,090$ 0.38%3,077,856$
Bexar County 2,207,225,000 0.38%8,387,455
Bexar County Hospital District 1,168,200,000 0.38%4,439,160
Comal County 121,175,000 3.59%4,350,183
Comal ISD 1,049,362,848 3.98%41,764,641
East Central ISD 101,935,155 3.34%3,404,634
Guadalupe County 13,145,000 18.29%2,404,221
Judson ISD 552,986,085 0.03%165,896
Schertz-Cibolo-Universal ISD 374,839,507 46.55%174,487,790
Subtotal, Overlapping Debt 242,481,835
City Governmental Activities Direct Debt 94,527,708
TOTAL NET OVERLAPPING DEBT 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.
CITY OF SCHERTZ, TEXAS
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
CURRENT YEAR
111
TABLE 15
Assessed Value, 2023 Tax Roll 6,740,344,392$
674,034,439$
Amount of Applicable Debt:
General Bonded Debt 94,527,708$
Less Debt Service Net Position (867,965) 93,659,743
Debt Margin 580,374,696$
Total Net Debt as a Percentage
of Debt Margin 16.14%
2019 2020 2021 2022
Assessed Value 3,900,769,022$ 4,152,459,607$ 4,070,815,340$ 6,740,344,392$
Debt Limit 390,076,902 415,245,961 407,081,534 674,034,439
Total Net Debt Applicable to Limit 66,019,954 61,318,507 53,946,636 74,600,814
Total Debt Margin 324,056,948$ 353,927,454$ 353,134,898$ 599,433,625$
2016 2017 2018
Assessed Value 3,375,850,131$ 3,647,504,903$ 3,783,027,833$
Debt Limit 337,585,013 364,750,490 378,302,783
Total Net Debt Applicable to Limit 61,181,169 65,792,916 66,329,699
Total Debt Margin 276,403,844$ 298,957,574$ 311,973,084$
2013 2014 2015
Assessed Value 2,600,365,551$ 2,752,562,574$ 3,037,267,611$
Debt Limit 260,036,555 275,256,257 303,726,761
Total Net Debt Applicable to Limit 60,499,568 56,803,499 53,424,303
Total Debt Margin 199,536,987$ 218,452,758$ 250,302,458$
Fiscal Year
CITY OF SCHERTZ, TEXAS
DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
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.
112
TABLE 16
Utility Less: Net
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
Water Revenue Bonds
Debt Service
NOTE: Details regarding the City's outstanding debt can be found in the notes to the basic financial
statements. Operating expenses do not include the depreciation, interest, or amortization expenses.
CITY OF SCHERTZ, TEXAS
PLEDGED REVENUE COVERAGE
LAST TEN FISCAL YEARS
113
TABLE 17
Fiscal
Year Population
Personal
Income
Per Capita
Personal
Income
Median
Age
Education
Level in
Years of
Schooling
School
Enrollment
Unemployment
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%
CITY OF SCHERTZ, TEXAS
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
Sources:Population, personal income, median age and education level informaiton provided by City
Economic Development Corporation. School enrollment provided by Schertz-Cibolo-Universal City
Independent School District. Unemployment data provided by Texas Workforce Commission.
114
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TABLE 18
2024
Employer Employees
Percentage
of Total City
Employment Employees
Percentage
of Total City
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
2015
CITY OF SCHERTZ, TEXAS
TOP TEN PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
115
Function 2015 2016 2017 2018
General Government
City Manager 6 5 5 5
Municipal Court 6 6 6 6
Customer Relations 5 5 5 5
Planning and Zoning 3 4 4 4
General Services 13 - - -
City Secretary 2 2 2 2
Public Affairs 4 4 4 5
Records Management 1 1 1 -
Schertz Magazine 2 2 2 -
Engineer 3 7 7 7
GIS 2 2 2 2
Information Technology 6 6 7 8
Human Resources 4 5 5 5
Finance 8 8 8 8
Purchasing 3 3 3 3
Fleet Service 6 6 6 6
Building Maintenance 3 - - -
Facility Services - 16 16 17
Public Safety
Police 75 78 81 86
Fire 33 36 39 45
Inspections 9 8 8 11
Marshal Services 8 8 5 -
Health
Animal Control 7 8 8 7
Environmental Health - 3 3 4
Parks and Culture
Parks 9 9 10 12
Pools - - - -
Event Facilities 1 1 1 1
Library 14 14 14 15
Public Environment
Streets 14 14 14 14
Public Works
Public Works 6 4 4 4
Business Office 10 10 10 10
Water and Sewer 16 16 16 19
Drainage 8 6 6 8
EMS 37 39 41 45
Economic Development 4 4 4 4
TOTAL 328 340 347 368
Source: City Adopted Budgets
Full-Time Equivalent Employees as of September 30,
LAST TEN FISCAL YEARS
FULL-TIME EQUIVALENT CITY GOVERNMENTAL EMPLOYEES BY FUNCTION
CITY OF SCHERTZ, TEXAS
116
TABLE 19
2019 2020 2021 2022 2023 2024
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
Full-Time Equivalent Employees as of September 30,
117
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 Conducted 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
Fiscal Year Fiscal Year
LAST TEN FISCAL YEARS
OPERATING INDICATORS BY FUNCTION/PROGRAM
CITY OF SCHERTZ, TEXAS
118
TABLE 20
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
Fiscal Year
119
Function 2015 2016 2017 2018
Fiscal Year Fiscal Year
LAST TEN FISCAL YEARS
OPERATING INDICATORS BY FUNCTION/PROGRAM
CITY OF SCHERTZ, TEXAS
Water
New Connections 369 213 303 235
Water Main Breaks 45 45 45 50
Total Consumption (hundreds of gallons)14,757,134 16,097,931 15,222,373 15,833,124 Daily Average Consumption (thousands of gallons)40,431 43,942 41,705 43,378
Peak Daily Consumption (thousands of gallons)8,385 10,985 11,000 9,083
Total Customers 13,570 13,877 14,124 14,678 Average Use Per Connection 5,135 5,352 5,244 5,294
Sewer
Total Customers 12,058 12,282 12,398 12,866
Facilities Maintenance
Number of Buildings Maintained 21 21 21 25 Square Footage 234,202 234,202 234,202 245,218
Source: Various City Department
120
TABLE 20
2019 2020 2021 2022 2023 2024
Fiscal Year
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 16,5044,587 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 24257,218 257,218 257,218 257,218 273,970 273,970
121
Function 2015 2016 2017 2018
Police
Stations 1 1 1 1
Police Vehicles 48 50 64 69
Fire
Stations 2 2 2 3
Training Facility - - - -
Fire Vehicles 16 16 16 18
EMS
Ambulances 9 9 8 8
Marshal's Office
Vehicles 7 7 7 7
Streets
Streets, paved (miles)149 153 159 153
Streets, unpaved (miles)5 5 5 5
Sidewalks (miles)
Parks and Recreation
Parks - Developed 14 15 20 21
Parks - Undeveloped 9 10 4 4
Playground 18 19 19 19
Swimming Pools 2 2 4 4
Baby Pools 2 2 2 2
Baseball/Softball Diamonds 15 15 15 15
Soccer Fields 12 12 12 12
Community Centers 4 4 4 4
Splash Pads
Animal Services
Control Vehicle 3 4 3 4
Library
Facility 1 1 1 1
Volumes in Collection 113,085 97,412 107,382 110,266
Water
Number of Reservoirs - - - -
Number of Pump Stations 5 5 5 5
Water Mains (miles)210 213 221 225
Sewer
Sanitary Sewers (miles)96 98 110 113
Storm Sewers (miles)12 12 12 14
Facilites Services
Vehicles 6 6 6 11
Fleet
Generators 4 4 4 7
Vehicles & Equipment NA NA NA 384
Source: Various City DepartmentNotes: No Capital Asset indicators are available for the General Government or EMS function.
Fiscal Year
LAST TEN FISCAL YEARS
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
CITY OF SCHERTZ, TEXAS
122
TABLE 21
2019 2020 2021 2022 2023 2024
1 1 1 1 1 1
68 72 66 76 90 97
3 3 3 3 3 3
- - - - - -
19 20 20 24 24 25
9 9 10 11 12 13
7 7 7 3 NA NA
165 165 168 172 180 182
5 5 5 5 5 5
21 21 21 21 21 21
4 4 5 5 5 5
20 21 21 36 36 36
4 4 4 3 3 3
2 2 2 1 1 1
15 15 15 15 15 15
12 12 12 12 12 12
4 4 4 4 4 4
2 2
4 6 6 8 8 8
1 1 1 1 1 1
150,972 139,447 149,965 155,715 160,533 170,265
- - - - - -
5 6 7 6 6 6
228 229 231 236 246 251
116 116 120 124 133 142
14 14 15 16 17 18
11 10 8 10 9 10
10 7 8 11 11 13
352 341 376 373 420 428
Fiscal Year
123
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