CAFR FY 1993-1994COMPREHENSIVE
ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED
SEPTEMBER 30, 1994
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CITY OF SCHERTZ, TEXAS
CITY OF SCHERTZ, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 1994
CITY OFFICIALS
MAYOR HONORABLE HAROLD D. BALDWIN
CITY COUNCIL KENNETH GREENWALD
MAYOR PRO -TEM
(May, 1993 to October, 1993)
MARY MARSH
BARBARA STANHOPE
JOE POTEMPA
MAYOR PRO -TEM
(November, 1993 to November, 1994)
CHARLES MCDONALD
CITY MANAGER KERRY R. SWEATT
INDEPENDENT AUDITORS
Thompson, Williams, Biediger, Kastor & Young, L.C.
San Antonio, Texas
OFFICIALS ISSUING REPORT
Kerry R. Sweatt
City Manager
Debra Kline
Finance Director
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C O N T E N T S
INTRODUCTORY SECTION
PAGE
NUMBER
Letter of Transmittal
viii
Organization Chart
xv
GFOA Certificate of Achievement
Zvi
FINANCIAL SECTION
Independent Auditor's Report
3
General Purpose Financial Statements
Combined Balance Sheet - All Fund Types
and Account Groups
8
Combined Statement of Revenues, Expenditures
and Changes in Fund Balances - All Governmental
Fund Types
12
Combined Statement of Revenues, Expenditures
and Changes in Fund Balances - Budget and
Actual - General and Debt Service Fund Type
15
Combined Statement of Revenues, Expenses, and
Changes in Retained Earnings - All Proprietary
Fund Types
16
Combined Statement of Cash Flows - All Proprietary
Fund Types
17
Notes to Financial Statements
19
Combining, Individual Fund and Account Group
Statements and Schedules
General Fund
Comparative Balance Sheets
41
Comparative Schedules of Revenues,
Expenditures, and Changes in Fund Balances
(GAAP Basis) - Budget and Actual
42
Schedule of Revenues Compared to Budget
43
Schedule of Expenditures Compared to Budget
(GAAP Basis)
44
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C O N T E N T S
PAGE
TABLE NUMBER
Special Revenue Fund
Combining Balance Sheet
46
Combining Statement of Revenue, Expenditures
and Changes in Fund Balances
47
Debt Service Fund
Comparative Balance Sheets
50
Comparative Statements of Revenues,
Expenditures, and Changes in Fund
Balances - Budget and Actual
51
Capital Projects Funds
Combining Balance Sheet
54
Combining Statements of Revenue,
Expenditures, and Changes in Fund Balance
55
Enterprise Funds
Combining Balance Sheet
58
Combining Statement of Revenues, Expenses,
and Changes in Retained Earnings
60
Combining Statement of Cash Flows -
All Proprietary Fund Types
61
General Fixed Assets Account Group
Schedules of General Fixed Assets - By Source
65
Schedules of General Fixed Assets -
By Function and Activity
66
STATISTICAL INFORMATION
General Governmental Expenditures by Function
1
70
General Government Revenues by Source
2
71
Property Tax Levies and Collections
3
72
Assessed and Estimated Actual Value of Property
4
74
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C O N T E N T S
Property Tax Rates - Direct and Overlapping
Governments
Ratio of Net General Obligation Bonded Debt
to Assessed Value and Net General Bonded
Debt Per Capita
Computation of Direct and Overlapping Debt
Legal Debt Margin
Ratio of Annual Debt Service Expenditures for
General Obligation Bonded Debt to Total
General Expenditures - Last Ten Fiscal Years
Water and Sewer Fund Revenue Bond Coverage
Waterworks and Sewer System Fund Revenue
Bond Requirements and Restricted Funds
Demographic Statistics - Last Ten Fiscal Years
Property Value, Construction, and Bank
Deposits - Last Ten Fiscal Years
Principal Taxpayers
Miscellaneous Statistics
SINGLE AUDIT REPORTS
Independent Auditor's Report on Schedule
of Federal Financial Assistance
Schedule of Federal Financial Assistance
Notes to Schedule of Federal Financial
Assistance
Independent Auditor's Report on Internal
Control Structure Based on an Audit of
General Purpose Financial Statements
Performed in Accordance with Government
Auditing Standards
Independent Auditor's Report on Compliance
Based on an Audit of General Purpose
Financial Statements Performed in
Accordance with Government Auditing
Standards
iv
PAGE
TABLE NUMBER
5 75
6 76
7 77
8 78
9 79
10 80
11 82
12 83
13 84
14 86
15 87
91
92
94
95
99
C O N T E N T S
PAGE
TABLE NUMBER
Independent Auditor's Report on the City's
Internal Control Structure Used in
Administering Federal Financial Assistance
Programs 101
Independent Auditor's Report on Compliance
with the General Requirements Applicable to
Federal Financial Assistance Programs 107
Independent Auditor's Report on Compliance
with Specific Requirements Applicable to
Nonmajor Federal Financial Assistance
Program Transactions 109
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INTRODUCTORY SECTION
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1400 SCHERTZ PARKWAY
P. O. DRAWER I
SCHERTZ, TEXAS 78154 -0890
AC (210) 658 -3510
FAX (210) 659 -3204
Febxuary 20, 1995
To the Citizens of the City of Schertz, Texas
KERRY R. SWEATT
QTY MANAGER
The comprehensive annual financial report (CAFR). of the city of Schertz,
Texas, (The City) for the year ending September 30, 1994 is submitted herewith.
Responsibility for both the accuracy of the presentation including all disclosures
rests with the City. The data, as presented, is accurate to the best of our
ability in all material aspects. The report is presented in a manner . designed to
set forth the financial position of the City and a review of various funds. we
have attempted to provide all disclosures necessary to enable the reader to gain
maximum understanding of the City's financial activity.
The accompanying CAFR is presented in the following three (3) sections:
1. Introduction - Includes this letter of transmittal, Table of
Organization, comments regarding economic conditions and outlook, major
occurrences of fiscal year 1993 -94, and major initiatives for fiscal year
1994 -95.
2. Financial - This section consists of: The Independent Auditors' Report,
General Purpose Financial Statements including combined balance sheets
and combined statements of revenue and expenditures and changes in fund
balance, notes to financial statements, and individual fund statements
and account group with supplemental statements. Within information
contained in this section is a review of the accounting system, and
controls and includes commentary thereto.
3.. Statistical - This section includes selected financial and demographic
information, generally presented on a multi -year basis.
4. Single Audit Reports
This report includes all funds and account groups of the City of Schertz. The
City provides a full range, of services including: police, emergency medical
transportation, and fire protection; water and sewer services; waste collection;
code enforcement; comprehensive planning; street maintenance and recreational
activities as well as economic development efforts. while the Schertz Public
Library is an operating department of City government, the Library Board serves as
an advisory board and maintains a small amount of funds, derived from private
sources, as a means to fund specific improvements /additions to the library outside
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City resources. The Schertz Development Foundation is a nonprofit corporation
organized and operated for charitable purposes, including, but not limited to,
assisting the City of Schertz, Texas, develop and implement economic viability to
the City. The operations of the Development Foundation have been blended into the
' City's CAFR. The Schertz Volunteer Fire Department Board does not meet the
criteria for inclusion in the reporting entity, and accordingly, is excluded from
this report.
ECONOMIC CONDITION AND OUTLOOK
' The City is located near the center of the San Antonio standard statistical
metropolitan area which continues to rank as one of the highest tourist attraction
areas in the Southwest. The economic condition and outlook of the area has
improved substantially over the last year and signs of recovery appear in a number
' of areas. While housing starts indicated by 92 single family residential permits
issued this year through September are lower as compared to 245 for the comparable
period of 1993; and total permit values of $144,238,582 (commercial and
residential) as compared to $25,705,848 for 1993 indicate substantial capital
investment in the next year. Over 1,450 new single family lots recently master
planned clearly indicate major improvement in our economy and strength of the local
housing market.
CURRENT YEAR PROJECTS
' Recent new developments as well as enhancement of existing businesses shows
a renewed enthusiasm, and the attitude that "nothing breeds success like success"
seems to effect relocation and growth activity for our area. A positive outlook
' is shared by all involved in the community's Economic Development Commission
activities. The City is currently working with several substantial prospects to
relocate to the area. We continue to receive an ever larger number of inquiries
which is another positive economic sign. one of the major strengths of the City
' is an abundance of land available for development along the San Antonio /Austin
corridor of IH -35 and similarly available land for development along the corridor
between Houston /San Antonio of IH -10.
MAJOR EVENTS
' The major events for fiscal year 1993 -94 can be categorized into three major
areas. The first is housing construction and master planning. The City continues
to grow to a point where very few platted residential lots were available at mid-
year. By the end of the fiscal year over 1,079 additional residential lots had
t been master planned. Greenshire Unit II was completed, Dove Meadows Unit II began
construction, and Gxeenshire Unit III began construction. We continue to see a
strong trend toward residential construction as RAYCO homes has purchased property
' along Schertz Parkway and is expected to begin construction in the spring of 1995.
Finally, we have seen a significant interest in multi - family housing over the last
year. Several are in preliminary stages.
' Substantial increase in commercial construction has also occurred. Technos
Corporation has completed construction on a $500,000 building on FM 3009, and
opened for business in April, 1994. American Freightways broke ground on a 3.50
' million dollar facility, expected to be completed in May of 1995. Pro -Tech
Manufacturing also broke ground on a new facility in September. Wendy's opened on
FM 3009 as well as several smaller businesses in various locations throughout the
' City.
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Public Capital Projects - Several capital projects got underway this fiscal
year. The first was a major project in the Mobile Villa subdivision. The project
included installation of a new sanitary sewer system, replacement of the water
system, and reconstruction of the streets throughout the subdivision. This project
was funded in part by a CDBG grant from Bexar County, the balance by city bonds.
A major part of this project was the extension of sewer service across IH -35, which
will end up servicing a much larger area than Mobile Villa itself.
We also received $148,000 in CDBG funds to begin a major ADA project of curb
depression, and an upgrade of restrooms in the city park to meet ADA standards.
Several major streets in the city were repaved and in some cases
reconstructed. The repaving projects included parts of Schertz Parkway, Main
Street, and oak Street. oak Street required major work to improve drainage. Other
street work included complete reconstruction of Pfeil Road.
The City completed a water system looping project on Schertz Parkway and IH -35
and major utility system adjustments on both FM 78 and FM 3009 due to roadway
construction.
Several other capital additions of importance were the purchase of an
emergency generator for the Municipal Complex, a new ambulance unit for SAFES, and
continuation of the Police Replacement Vehicle Program. The public works building
was improved by redesigning office and work spaces. Finally, installation was
completed on a project to fence the softball fields at the city park.
MAJOR INITIATIVES
During the coming year we believe the City will benefit from the generally
positive outlook. Renewed interest and emphasis in community development in the
form of revisions to the City's comprehensive plan further enhance that sense of
optimism and tend to compliment economic development activities.
FINANCIAL INFORMATION
The City's accounting records for general governmental operations are
maintained on a modified accrual basis, with revenues being recognized when they
become both measurable and available and expenditures being recognized when the
services or goods are received and the liabilities are incurred. Accounting
records for the City's utilities and other enterprises are maintained on the
accrual basis of accounting.
In developing and altering the City's accounting systems, consideration has
been given to the adequacy of internal accounting controls. Internal accounting
controls have been designed to provide reasonable assurance regarding:
* The safeguarding of assets against loss from unauthorized use of
disposition and
* The reliability of financial records for preparing financial statements
and maintaining accountability for assets.
The concept of reasonable assurance recognizes that:
* The cost of control should not exceed the benefits likely to be derived '
and,
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* The evaluation of costs and benefits required estimates and judgments by
management.
All internal control evaluations occur within the above framework. The City's
internal accounting controls adequately safeguard assets and provide reasonable
assurance of proper recording of financial transactions.
Budgetary control is maintained by the use of purchase order procedures that
require encumbrance of the estimated purchase amounts prior to the release of
purchase orders to vendors. open encumbrances, if any, are reported as
reservations of fund balance at September 30, 1994.
General Governmental Functions - Revenues which include general, special
revenue, debt service, and capital projects for general governmental function
totaled $3,222,693 in 1994, an increase of 8.70% from 1993. Taxes produced 65.50%
of general revenues compared to 63.90% last year. The amount of revenues from
various sources and the increase /decrease from last year are shown in the following
tabulation:
PERCENT INCREASE
OF (DECREASE)
AMOUNT TOTAL FROM 1993
Taxes (Property, Sales, Etc.)
$2,109,202
65.50%
$213,869
Licenses and Permits
145,229
4.50
(28,081)
Charges for Services
343,731
10.70
16,297
Fines and Forfeitures
195,964
6.00
(236)
Other Revenues
428,567
13.30
55,832
$3,222,693 100.00% $257,681
Expenditures - For general governmental purposes, expenditures totaled
$2,943,764, an increase of 2.20% from 1993. Changes in levels of expenditures for
major functions of the City over the preceding year are shown in the following
tabulation:
$2,943,764 100.00% 6$ 4,469
As reflected in the financial statements, general fund revenues including
sales tax as well as ad valorem taxes have generally increased. Through
cooperative agreements with Guadalupe County, specific intergovernmental payments
for services such as library, fire, and SAFES have increased. Other major
fluctuations include: an increase in construction permits and related items due
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PERCENT
INCREASE
OF
(DECREASE)
FUNCTION
AMOUNT
TOTAL
FROM 1993
General Government
$ 744,801
25.30%
$ 3,496
Public Safety
978,121
33.20
53,899
Streets and Parks
308,126
10.50
(65,087)
Health Services
80,494
2.70
5,053
Recreation
161,095
5.50
23,867
Economic Development
52,476
1.80
15,050
Capital outlay
320,388
10.90
(73,753)
Debt Service
298,263
10.10
101,944
$2,943,764 100.00% 6$ 4,469
As reflected in the financial statements, general fund revenues including
sales tax as well as ad valorem taxes have generally increased. Through
cooperative agreements with Guadalupe County, specific intergovernmental payments
for services such as library, fire, and SAFES have increased. Other major
fluctuations include: an increase in construction permits and related items due
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to an increase in total construction. General Fund expenditures have increased in
a number of areas including overall personnel costs resulting from step increases
and related items. We believe overall realignments in budget accounts more
correctly reflect actual cost centers by activity and function than in years prior.
General obligation bonded debt data for the City of Schertz at the end of 1994
fiscal year was as follows:
AMOUNT
Net General Obligation Bonded
Debt (Principal) $1,132,128
General Obligation Bonds
Revenue Bonds
RATIO OF DEBT
TO ASSESSED
VALUE (100%)
OF PRESENT DEBT PER
MARKET CAPITA
.43% $90.57
MOODY'S
INVESTORS
SERVICE
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Property Taxes - Current tax collections are 98.4% of the tax levy. This is
the seventeenth consecutive year in which current property tax collections have
exceeded 97.0 %. The ratio of total collections (current and delinquent) to the
current tax levy was 99.6 %. Allocations of property tax levy by purpose for 1994
and the preceding two fiscal years are as follows (amounts per $100 assessed
value):
PURPOSE
General Fund
General Obligation Debt
1994 1993 1992
.3731 .3512 .3185
.0953 .0743 .0704
.4684 .4255 .3889
Cash Management - cash temporarily idle during the year was invested in short -
term time deposits. The interest earned on such deposits during the year was
$131,107, an increase of $49,477 interest compared to earnings during 1993. This
increase was due to additional funds from the 1992 bond issue being available.
Bank deposits and certificates of deposit are secured by FDIC insurance and
governmental securities pledged by Schertz Bank and Trust and held in safekeeping
by Frost Bank.
General Fixed Assets - The general fixed assets of the City are those fixed
assets used in the performance of general governmental functions and exclude the
fixed assets of Enterprise Funds. As of September 30, 1994, the general fixed
assets of the City amounted to $10,388,595. This amount represents the original
cost, or an estimate of the original cost of the assets. Depreciation of general
fixed assets is not recognized in the City's accounting system. Refer to
Notes 1 (I) and 5 in the notes to the financial statements.
The City is self - insured on physical damage to specific vehicles. In order
to provide coverage for this, risk funds are designated in the General Fund with
a balance of $45,000 at September 30, 1994.
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' Water and Sewer System - During the fiscal year ended September 30, 1994, net
revenues in the water -sewer system increased substantially with the adoption of an
inverted block rate. Comparative data for the past two fiscal years is presented
below:
1994 1993
' Total Operating Revenue _ $1,997,654 $1,617,768
Operating Income (Gross Revenues
Less Operating Expenses) 418,820 (159,272)
' Net Revenues (Operating Income Plus
Depreciation Less Solid Waste Revenues) 733,759 177,825
Average Annual Debt Requirements 273,227 279,458
' During the year, $95,000 of revenue bonds, $80,000 in certificates of
obligation, $4,000 in Public Facility HUD Bond, and $19,151 of a note payable (New
Braunfels Utilities) were retired in the Water and Sewer Fund.
Schertz Area Facility for Emergency Services (SAFES) - During the fiscal year
ended September 30, 1994, SAFES increased its revenue 20.3% and increased operating
' expensed by 2.1 %. SAFES is fully dependent on income fees generated from services
rendered and the contracted cities' support to cover operations costs. This year
SAFES had an operating income before depreciation of $127,326. This is net of a
charge for future uncollectible accounts of $71,660 that was taken against the
operating expenses fox the current year.
OTHER INFORMATION
Awards - 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 for its comprehensive annual financial report for the fiscal
year ended September 30, 1993. The Certificate of Achievement is the highest form
of recognition for excellence in state and local government financing reporting.
' In order to be awarded a Certificate of Achievement, a government unit must
publish an easily readable and efficiently organized comprehensive annual financial
report, whose contents conform to program standards. Such reports must satisfy both
' generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. The City
of Schertz has received a Certificate of Achievement for the last six (6)
consecutive years. We believe our current report continues to conform to the
Certificate of Achievement program requirements, and we are submitting it to GFOA.
' xiii
The City Council has selected the firm of Thompson, Williams, Biediger, Kastor
& Young, L. C. of San Antonio, Texas, to perform the independent audit for the fiscal
year 1993 -94. We find the background experience and interest of the firm will
assure the accomplishment of the audit function in an outstanding manner and will
provide educational training opportunities for our staff.
Acknowledgements - I want to extend my thanks to the Mayor and members of the
City council for their interest and support in planning and conducting the financial
operations of the city in an effective and efficient manner. Ms. Debra Kline of our
staff and representatives of the audit firm of Thompson, Williams, Biediger, Kastor
& Young, L.C. have provided a high degree of expertise and assistance for the
preparation of the report and I wish to express my personal thanks and appreciation
for their help.
Respectively Submitted,
Kerr R eatt
City Manager
DebrA Kline
Finance Officer
xiv
ANK, I
1. Planning
Secretary
Pt1oil WoWent.
I - Director
I - Asst. Director
I - Secretary
I - Clerk
I
90—MM 110", 11V
I - Supervisor 1 - Supervisor
I - Foreman I - Foreman
2 - Worker 11 3 - Servicemen 11
4 - Worker 1 4 - Servicemen I
I - PT Pool Mgr. I - Meter Reader 11
2 - PT Shift Chts 12 - Meter Reader I
6 - PT lifeguard
FarKwo,0010"
I - Foreman
I - Worker 11
I - Worker I
1 - Supervisor
I -A/C Officer
1 - Shelter Op.
1- Inspector
1 - Asst. Inspector
"'i,
1 - Supervisor
1 - Custodian
1 - PT Custodian
I - Facilities
Repair
1 - Mechanic
Services
F_
I - Finance Officer
2 - Finance Clerk
I - Dpty City Secretary
I - PT Finance Clark
1 - Librarian
2 - Clerks
2 - PT Clerks
I
SOWN
I - EMS Director
I - Asst. Director
3 - EMT Attendants
4 - PT Attendants
FIMPOW
I - Chief
3 - Lieutenant
3 - Firemen
I - Fire Inspector
9 - PT Fireflghter
I - Office Manager/
Data System Adm.
1 - Court Clerk
1 - Clerk Typist
1 - Receptionist
2 - Utility Clerk
MOWN
I - Tax Collector
1 - Tax Clerk
I - Chief
I - Lieutenant
3 - Sergeant
I - Sgt/Juvehlle Off.
I - Warrant Officer
13- Patrolmen
I - Office Manager
6 - Dispatcher
2 - PT Crossing Guard
97 - Full Time Employees
36 - Part Time Employees
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Schertz,
Texas
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 1993
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
President
Y
Executive Director
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FINANCIAL SECTION
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® NORTH TOWER
800 N.W. LOOP 410. SUITE 300
SAN ANTONIO, TEXAS 78P188611
1
FAX 2
FAX 2100/34/34
6P588
To the Honorable Mayor and
Members of the City Council
City of Schertz, Texas
Thompson,
Williams,
Biediger,
Kas or
Young,
L.C.
Independent Auditor's Report
CERTIFIED PUBLICACCOUNTANTS
MEMBERS AMERICAN INSTITUTE OF
CERTIFIED PUBLIC ACCOUNTANTS
We have audited the accompanying general purpose financial statements of the
City of Schertz, Texas, and the combining financial statements of the City of
Schertz, Texas, as of and for the year ended September 30, 1994, as listed in the
table of contents. These financial statements are the responsibility of the City's
management. Our responsibility is to express an opinion on these financial
statements based on our audit. The financial statements of the City of Schertz,
Texas, as of September 30, 1993 were audited by other auditors whose report dated
January 21, 1994, expressed an unqualified opinion on those statements.
We conducted our audit in accordance with generally accepted auditing standards
and Government Auditing Standards issued by the Comptroller General of the United
States and the provisions of Office of Management and Budget Circular A -128, Audits
of State and Local Governments. those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our
opinion.
In our opinion, the general purpose financial statements referred to above
present fairly, in all material respects, the financial position of the City of
Schertz, Texas, at September 30, 1994, and the results of its operations and cash
flows of its proprietary fund types for the year then ended, in conformity with
generally accepted accounting principles. Also, in our opinion, the combining
financial statements referred to above present fairly, in all material respects, the
financial position of each of the individual funds of the City of Schertz, Texas,
at September 30, 1994, and the results of operations of such funds and the changes
in individual proprietary funds for the year then ended, in conformity with
generally accepted accounting principles.
R.LARRYTHOMPSON,C.PA. / PAULE. WILLIAMS, CPA. / JAMES L. BIEDIGER,JR., C.P.A. / GTFD KASTOR, C.P.A. / CHARLIE E. YOUNG, JR., C. P. A.
JOHNLFIEC.PA, / H. LEE SCHWARTZMAN, C. P. k / F. GLENN CRAVFY, C.P.A. / FRED J. TIMMONS, C.P.A. / JOHN W GREEN, C.P.A.
JAMES T McCARTY, C. PA. (RETIRED) 3
THOMPSON, WILLIAMS, BIEDIGER. K.ASTOR `R YOUNG, L.C.
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4
Our audit was made for the purpose of forming an opinion on the general purpose
financial statements taken as a whole and on the combining financial statements.
The accompanying financial information listed as supporting schedules in the table
of contents is presented for purposes of additional analysis and is not a required
part of the financial statements of the City of Schertz, Texas. The information in
these schedules has been subjected to the auditing procedures applied in the audit
' of the general purpose and combining financial statements and, in our opinion, is
fairly stated in all material respects in relation to the financial statements of
each of the respective individual funds, taken as a whole.
I
' San Antonio, Texas
February 15, 1995
[]
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Public Accountants
'eee
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' GENERAL PURPOSE FINANCIAL STATEMENTS
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CITY OF SCHERT2, TEXAS
COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS
SEPTEMBER 30, 1994
ASSETS
Cash and Cash Equivalents
Investments
Receivables (Net of Allowances)
Interest
Taxes
Accounts
Due from Other Funds
Inventory of Supplies, at Cost
Other Receivables
Prepaid Costs
Restricted Assets
Cash and Cash Equivalents
Investments
Fixed Assets (Net of
Accumulated Depreciation)
Organization Costs (Net of
Accumulated Amortization)
Other Debits
Amount Available in Debt
Service Fund
Amount to be Provided fox
Retirement of General
Long -Term Debt
Amount to be Provided for
Employee Compensated
Absences
TOTAL ASSETS
GOVERNMENTAL FUND TYPES
SPECIAL DEBT CAPITAL
GENERAL REVENUE SERVICE PROJECTS
$431,772 $13,962 -
29,157 23,494 200,594 1,194,953
- - - 3,013
55,537 - 12,066 -
12,282 - - -
351,531 - - -
14,378 - - -
4,500 - -
$894.657 $41,956 $216,541 $1,197,966
(See Accompanying Notes to Financial Statements)
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PROPRIETARY
FUND TYPES
ACCOUNT
GROUPS
GENERAL
GENERAL
TOTALS
INTERNAL
FIXED
LONG -TERM
(MEMORANDUM ONLY)
'
ENTERPRISE
SERVICE
ASSETS
DEBT
1994
1993
'
$ 34,208
$ 89
$ -
$ -
$ 483,912
$ 469,964
253,362
1,701,560
1,869,724
t
-
-
-
-
3,013
3,013
67,603
81,582
336,672
-
-
-
348,954
294,118
15,690
1,083
=
=
368,304
93,415
'
118,848
3,085
136,311
103,291
-
-
-
-
-
33
4,500
'
19,851
-
-
-
19,851
29,021
1,211,302
-
-
-
1,211,302
712,691
5,543,283
60,993
10,388,595
-
15,992,871
15,263,175
'
763
-
-
-
763
811
1
-
-
-
61,872
61,872
43,965
-
-,
-
1,907,128
1,907,128
2,058,035
102,248
102,248
83,790
'
$7,533,979
$65,250
$10,388,595
$2,071,248
522,410,192
$21,106,628
(Continued)
'
9
CITY OF SCHERT2, TEXAS
COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS
SEPTEMBER 30, 1994
GOVERNMENTAL FUND TYPES
SPECIAL
DEBT CAPITAL
GENERAL
REVENUE
SERVICE PROJECTS
LIABILITIES AND FUND EQUITY
LIABILITIES
Vouchers Payable
$ 18,013
$ -
$ - $ -
Notes Payable
35,333
-
- -
Compensated Absences Payable
Payable from Restricted Assets
Deposits
-
-
- -
Revenue Bond
-
-
- -
Certificates of obligation
-
-
- -
Public Facility Loan
-
-
- -
Due to Other Funds
-
882
142,603 97,660
Deferred Revenue
55,537
-
12,066 -
General Obligation Bonds Payable
-
-
- -
Revenue Bonds Payable
-
-
- -
Certificates of Obligation Payable
-
-
- -
Contractual Obligations Bonds
Payable
-
-
- -
Public Facility Loan
-
-
- -
Note Payables (Less Current
Maturities)
-
-
- -
Accrued Expenses
-
2,645
- -
Total Liabilities
$108,083
3,527
$154,669 S 97,660
FUND EQUITY
Contributed Capital
$ -
-
Investment in General Fixed
Assets
-
-
- -
Retained Earnings
Reserved for Revenue Bond
Retirement
-
-
- -
Reserved for Equipment
Replacement
-
-
- -
Unreserved
-
-
- -
Fund Balances
Reserved for Park Improvements
13,293
-
- -
Reserved for Forfeited
Property
3,309
-
- -
Reserved fox Inventory of
Supplies
14,378
_
-
Reserved for Debt Service
-
-
61,872 -
Unreserved
—�
Designated for Economic
Development
18,821
-
- 1,100,306
Designated for Equipment
Replacement
15,144
-
- -
Designated for Self- Insurance
45,000
-
- -
Undesignated
675,829
38,429
-
Total Fund Equity
$785,774
$38,429
$ 61,872 $1,100,306
TOTAL LIABILITIES AND
FUND EQUITY
$894,657
$41,956
$216,541 $161976966
(See Accompanying Notes to Financial
Statements)
10
1
1
t
t
PROPRIETARY FUND TYPES
INTERNAL
ENTERPRISE SERVICE
ACCOUNT GROUPS
GENERAL GENERAL
FIXED LONG -TERM
ASSETS DEBT
TOTALS
(MEMORANDUM ONLY)
1994 1993
$ 90,479
$ -
$ - $ -
$ 108,492
$ 101,088
50,619
-
- -
85,952
55,114
23,318
1,470
- 102,248
127,036
107,692
119,539
-
- -
119,539
128,170
100,000
-
- -
100,000
95,000
85,000
-
- -
85,000
30,000
4,000
-
- -
4,000
4,000
111,469
15,690
- -
368,304
93,415
-
-
- -
67,603
81,582
-
-
- 1,194,000
1,194,000
1,252,000
1,455,000
-
- -
1,455,000
1,555,000
980,000
-
- 740,000
1,720,000
1,895,000
-
-
- 35,000
35,000
70,000
84,000
-
- -
84,000
88,000
196,017
-
- -
196,017
216,636
48,097
-
- -
50,742
47,575
$3,347,538
$17,160
$ -0- $2,071,248
$ 5,800,685
$ 5,820,272
$3,766,824
$63,577
$ - $ -
$ 3,830,401
$ 3,622,068
-
-
10,388,595 -
10,388,595
9,902,939
382,368
-
- -
382,368
341,141
100,667
-
- -
100,667
123,447
(63,418)
(15,487)
- -
(78,905)
(817,082)
-
-
- -
13,293
-
-
-
- -
3,309
-
-
-
- -
14,378
18,605
-
-
- -
61,872
43,965
1,119,127 18,821
15,144 15,144
- - - 45,000 45,000
714,258 1,972,308
$4,186, $48,090 $10,388,595 $ -0- $16,609,507 $15,286,356
$7,533,979 $65,250 $10,388,595 $2,071,248 $22,410,192 $21,106,628
11
CITY OF SCHERTZ, TEXAS
COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES
YEAR ENDED SEPTEMBER 30, 1994
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1993)
G O V E R N M E N T A L
GENERAL SPECIAL REVENUE
REVENUES
Taxes
$2,109,202
$ -
Licenses and Permits
145,229
-
Charges for Services
343,731
-
Fines and Forfeitures
195,964
-
Other Sources
133,344
61,687
Total Revenues
$2,927,470
$61,687
EXPENDITURES
Current
General Government
$ 744,801
$ -
Public Safety
978,121
-
Streets and Parks
305,633
2,493
Health
80,494
-
Recreation
157,437
3,658
Economic Development
41,887
10,589
Capital Outlay
133,229
-
Debt Service
Principal Retirement
-
-
Interest and Fiscal Charges
-
3,305
Total Expenditures
$2,441,602
$20,045
Excess (Deficiency) of Revenues
Over (Under) Expenditures
$ 485,868
$41,642
OTHER FINANCING SOURCES (USES)
Proceeds of Contractual Obligation
$ -
$ -
Operating Transfers In
-
-
operating Transfers (Out)
(245,176)
-
Total Other Financial Sources (Uses)
$ (245,176)
$ -0-
Excess of Revenues and Other
Financing Sources Over Expenditures
and Other Financing Uses
$ 240,692
$41,642
FUND BALANCES (DEFICIT) - OCTOBER 1, 1993
545,082
(3,213)
FUND BALANCES - SEPTEMBER 30, 1994
$ 785,774
$38,429
(See Accompanying Notes to Financial Statements)
12
I
1
1
$(294,669)
312,576
$ 312,576
$ 17,907
43,965
$ 61,872
$ 46,088 $ 278,929 $ 85,717
$ - $ - $ 620,000
312,576 384,792
(245,176) (184,792
$ -0- $ 67,400 $ 435,208
$ 46,088 $ 346,329 520,925
1.054.218 1.640,052 1,208,126
$1,100,306 $1,986,381 $1,7299051
13
TOTALS
F
U N D S
(MEMORANDUM
ONLY)
DEBT SERVICE
CAPITAL PROJECTS
1994
1993
$ -
$ -
$2,109,202
$1,895,333
-
-
145,229
173,310
-
-
343,731
327,434
-
-
195,964
196,200
289
233,247
428,567
372,735
$ 289
$ 233,247
$3,222,693
$2,965,012
$ -
$ -
$ 744,801
$ 741,305
-
- -
978,121
924,222
-
-
308,126
373,213
-
-
80,494
75,441
-
-
161,095
137,228
-
-
52,476
37,426
-
187,159
320,388
394,141
133,000
-
133,000
101,660
161,958
-
165,263
94,659
$ 294,958
$ 187,159
$2,943,764
$2,879,295
$(294,669)
312,576
$ 312,576
$ 17,907
43,965
$ 61,872
$ 46,088 $ 278,929 $ 85,717
$ - $ - $ 620,000
312,576 384,792
(245,176) (184,792
$ -0- $ 67,400 $ 435,208
$ 46,088 $ 346,329 520,925
1.054.218 1.640,052 1,208,126
$1,100,306 $1,986,381 $1,7299051
13
(This Page Intentionally Left Blank)
14
1
CITY OF 9CHERTE, TEXAS
' COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - GENERAL AND DEBT SERVICE FUND TYPE
' YEAR ENDED SEPTEMBER 30, 1994
1
REVENUES
' Tares
Licenses and Permits
Charges for Services
Fines and Forfeitures
Other
Total Revenues
'EXPENDITURES
Current
General Government
Public safety
' Streets and Parks
Health
Recreation
' Economic Development
Capital Outlay
Debt Service
Principal
' Interest
Total Expenditures
Excess of Revenues Over
$2,620,340 $2,441,602
(Under) Expenditures $ 248,938 $ 485,868
' OTHER FINANCING SOURCES (USES)
Operating Tramsfexa (Out) (241,885) (245,176)
' Excess (Deficiency) of
Revenues and Other Financing
Sources Over Expenditures and
' Other Financing Uses $ 7,053 $ 240,692
FUND BALANCES - OCTOBER 1, 1993 545,082 545,082
133,000 133,000 -
161,958 161,958 -
$178,738 $ 294,958 $ 294,958 $ -0-
$236,930 $(294,958) $(294,669) $ 289
(3,291) 241,885 312,576 70,691
$233,639 $ (53,073) $ 17,907
93,965 43,965
$70,980
' FUND BALANCES -
SEPTEMBER 30, 1994 $ 552,135 $ 785,774 $233,639 $ (9,108) $ 61,872 $70,980
[1
(See Accompanying Notes to Financial Statements)
15
GENERAL FUND
DEBT SERVICE
FUND
VARIANCE
VARIANCE
FAVORABLE
FAVORABLE
BUDGET
ACTUAL
(UNFAVORABLE) BUDGET
ACTUAL
(UNFAVORABLE)
$2,038,945
$2,109,202
$ 70,257 $ -
$ 289
$ 289
118,000
145,229
27,229 -
-
-
340,725
343,731
3,006 -
-
-
205,200
195,964
(9,236) -
-
-
166,408
133,344
(33,064) -
-
-
$2,869,278
$2,927,470
$ 58,192 $ -0-
$ 289
$ 289
$ 783,171
$ 744,801
6 38,370 $ -
6 -
$ -
1,045,896
978,121
67,775 -
-
-
360,099
305,633
54,466 -
-
-
84,967
80,494
4,473 -
-
-
168,784
157,437
11,347 -
-
-
39,707
41,887
(2,180) -
-
-
137,716
133,229
4,487 -
-
-
$2,620,340 $2,441,602
(Under) Expenditures $ 248,938 $ 485,868
' OTHER FINANCING SOURCES (USES)
Operating Tramsfexa (Out) (241,885) (245,176)
' Excess (Deficiency) of
Revenues and Other Financing
Sources Over Expenditures and
' Other Financing Uses $ 7,053 $ 240,692
FUND BALANCES - OCTOBER 1, 1993 545,082 545,082
133,000 133,000 -
161,958 161,958 -
$178,738 $ 294,958 $ 294,958 $ -0-
$236,930 $(294,958) $(294,669) $ 289
(3,291) 241,885 312,576 70,691
$233,639 $ (53,073) $ 17,907
93,965 43,965
$70,980
' FUND BALANCES -
SEPTEMBER 30, 1994 $ 552,135 $ 785,774 $233,639 $ (9,108) $ 61,872 $70,980
[1
(See Accompanying Notes to Financial Statements)
15
,
CITY
OF SCHERTZ,
TEXAS
COMBINED STATEMENT OF REVENUES,
EXPENSES, AND CHANGES IN
RETAINED EARNINGS
ALL PROPRIETARY FUND TYPES
'
YEAR ENDED SEPTEMBER
30, 1994
(WITH COMPARATIVE
TOTALS FOR SEPTEMBER 30,
1993)
TOTALS
.
ENTERPRISE
INTERNAL
SERVICE
(MEMORANDUM ONLY)
,
1994 1993
OPERATING REVENUE
Fees Charged to Users
$2,492,936
$ 61,104
$2,554,040
$2,059,938
'
OPERATING EXPENSES BEFORE
DEPRECIATION
Personal Services
$ 484,749
$ 21,938
$ 506,687
$ 516,182
'
Sewage Treatment
464,118
-
464,118
414,719
General and Administrative
Contractual Services
228,185
209,770
-
30,634
228,185
240,404
204,133
266,881
t
Supplies /Maintenance
116,144
31,555
147,699
343,987
Bad Debts
71,660
71,660
53,375
Total Operating Expenses
'
before Depreciation
$1,574,626
$ 84,127
$1,658,753
$1,799,277
Operating Income before
Depreciation
$ 918,310
$(23,023)
$ 895,287
$ 260,661
'
Depreciation
388,907
2,439
391,346
414,759
Operating Income (Loss)
$ 529,403
$(25,462)
$ 503,941
$ (154,098)
'
NONOPERATING REVENUES (EXPENSES)
Interest Income
$ 49,975
$ -
$ 49,975
$ 33,186
Interest Expense
(209,217)
-
(209,217)
(298,382)
Amortization
(48)
-
(48)
(48)
,
Reimbursements
31,293
-
31,293
48,568
Other
Total Nonoperating Revenues
1,198
-
1,198
-
'
(Expenses)
$ (126,799)
$ -0-
$ (126,799)
$ (216,567)
Net Income (Loss) before
Operating Interfund Transfers
$ 402,604
$(25,462)
$ 377,142
$ (370,665)
'
OPERATING TRANSFERS - IN (OUT)
(67,400)
-
(67,400)
(200 -,000)
Net Income (Loss)
$ 335,204
$(25,462)
$ 309,742
$ (570,665)
'
RETAINED EARNINGS (DEFICIT) -
OCTOBER 1, 1993
$ (362,469)
$ 9,975
$ (352,494)
$ 218,171
,
Prior Period Adjustment
446,882
-
446,882
Retained Earnings As Restated
$ 84,413
$ 9,975
S 94,388
$ 218,171
RETAINED EARNINGS (DEFICIT) -
SEPTEMBER 30, 1994
S 419,617
15 487)
S 404,130
S (352,994)
1
'
(See Accompanying Notes to Financial
Statements)
16
'
CITY OF SCHERTZ, TEXAS
COMBINED STATEMENT OF CASH FLOWS - ALL PROPRIETARY FUND TYPES
YEAR ENDED SEPTEMBER 30, 1994
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1993)
ENTERPRISE
FUNDS
CASH FLOWS FROM OPERATING
$ (633,775)
ACTIVITIES
$ (330,322)
Cash Received from Customers
$2,551,781
Cash Payments to Suppliers for
Goods and Services
(1,096,589)
Cash Payments to Employees
(169,523)
for Services
(484,155)
Other
32,449
Net Cash Provided by (Used in)
30,000
Operating Activities
$1,003,486
CASH FLOWS FROM NON- CAPITAL
FINANCING ACTIVITIES
Residual Equity Transfer
$ -
Operating Transfers in (Out)
(67,400)
Net Cash Provided by (Used in)
Non - Capital Financing
TOTALS
INTERNAL (MEMORANDUM ONLY)
SERVICE 1994 1993
$ 75,518 $2,627,299 $1,982,589
(62,657) (1,159,246) (1,427,143)
(21,646) (505,801) (516,546)
32,449 51,368
$ (8,785) $ 994,701 $ 90,268
(67,400) (200,000)
Activities $ (67,400) $ -0- S (67,400) $ (200,000)
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Acquisition and Construction
of Capital Assets
$ (633,775)
$ (1,611) $ (635,386)
$ (330,322)
Principal Payments on Long -
Term Debt
(198,151)
- (198,151)
(169,523)
Proceeds from Issuance of
Long -Term Debt
30,000
- 30,000
473,000
Interest Paid on Long -Term
Debt
(208,695)
- (208,695)
(298,382)
Capital Contributed for
Capital Assets
208,333
208,333
Net Cash Used in Capital and
Related Financing Activities
$ (802,288)
$ (1,611) $ (803,899)
$ (325,227)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on Investments $ 49,866
Net Increase (Decrease) in Cash $ 183,664
CASH AND CASH EQUIVALENTS -
OCTOBER 1, 1993 1,335,059
CASH AND CASH EQUIVALENTS -
SEPTEMBER 30, 1994 $16518,723
Comprised of
Current Assets $ 287,570
Restricted Assets 1,231,153
51,518,723
(See Accompanying Notes to Financial Statements)
17
$ $ 49,866 $ 33,186
$(10,396) $ 173,260 $ (401,773)
10,485 1,345,544 1,283,045
89 ILL. 8812 S 881,272
$ 89 $ 287,659 $ 139,560
1,231,153 741,712
89 $1,518,812 S 881,272
(Continued)
CITY OF SCHERTZ, TEXAS
COMBINED STATEMENT OF CASH FLOWS - ALL PROPRIETARY FUND TYPES
YEAR ENDED SEPTEMBER 30 1994
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1993)
RECONCILIATION OF OPERATING
INCOME (LOSS) TO NET CASH
PROVIDED BY OPERATING
ACTIVITIES
Operating Income (Loss)
Adjustments to Reconcile
Operating Income (Loss)
to Net Cash Provided by
Operating Activities
Depreciation /Amortization
Provision for Uncollectible
Accounts
Other
Change in Assets and
Liabilities
Decrease (Increase) in
Accounts Receivable
Increase in Inventory
Increase (Decrease) in
Vouchers Payable
Increase (Decrease) in
Due to Other Funds
Decrease (Increase) in
Due from Other Funds
Increase (Decrease) in
Accrued Vacation
Increase (Decrease) in Accrued
Interest Payable
Increase (Decrease) in
Customer Deposits
Supplemental Disclosure
Non -Cash Capital and Related
Financing Transactions
Equipment from Other Funds
Acquisition and Construction
of Capital Assets
Cost of Facility
Note Payable Issued
Federal Financial Assistance
Contributed Capital
TOTALS
ENTERPRISE INTERNAL (MEMORANDUM ONLY)
FUNDS SERVICE 1994 1993
$ 529,403 $(25,462) $503,941 $(154,098)
388,907 2,439 391,346 414,807
71,660 - 71,660 -
51,368
(111,752)
-
(111,752)
(33,790)
(36,779)
(468)
(37,247)
(10,914)
38,958
-
38,958
(7,696)
104,055
15,498
119,553
(209,610)
26,549
(1,084)
25,465
26,823
594
292
886
(366)
522
-
522
(2,626)
(8,631)
-
(8,631)
16,370
$1,003,486
$(8,785)
$994,701
$ 90,268
$ - $
- $ - $ 35,048
633,775
- 633,775 -
-
- - 273,000
(30,000)
- (30,000) (273,000)
(69,864)
- (69,864) -
(138,469)
- (138,469) -
18
P
11
n
P
L I
1
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1994
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the City of Schertz, Texas, (the City), have been prepared
in conformity with generally accepted accounting principles (GAAP) as applied to
government units. The Government 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
In evaluating how to define the city, for financial purposes, management has
considered all potential component units. The decision to include a potential
component unit in the reporting entity was made by applying the criteria set forth
in Governmental Accounting Standards Board (GASH) No. 14, "The Financial Reporting
Entity ". The basic, but not the only, criterion for including a potential component
unit with the reporting entity is the governing body's ability to exercise oversight
responsibility. The most significant manifestation of this ability is financial
interdependency. Other manifestations of the ability to exercise oversight
responsibility include, but are not limited to, the selection of governing
authority, the designation of management, the ability to significantly influence
operations, and accountability for fiscal matters. A second criterion used in
evaluating potential component units is the scope of public service. Application
of this criterion involves considering whether the activity benefits the city and /or
its citizens, or whether the activity is conducted within the geographic boundaries
of the city and is generally available to its citizens. A third criterion used to
evaluate potential component units for inclusion or exclusion from the reporting
entity is the existence of special financing relationships, regardless of whether
the city is able to exercise oversight responsibilities.
Based upon the applicability of these criteria, the following is a brief review of
each potential component unit addressed in defining the City's reporting entity.
Included within the reporting entity:
Schertz Public Library. Schertz Public Library governing board is appointed by the
Schertz City Council and provides the majority of its funding. The Library Fund
reflects the activity of this entity and has been reported in the Special Revenue
Fund of this report.
The Schertz Development Foundation is a nonprofit corporation organized and operated
for charitable purposes, including, but not limited to, assisting the City of
Schertz, Texas, develop and implement economic viability to the City. The
operations of the foundation are also reported as a Special Revenue Fund in the
' report. Annual reports of the Schertz Development Foundation for fiscal year ended
September 30, 1994 are available upon request from City Hall.
1 19
Excluded from the reporting entity:
Schertz
Volunteer Fire Department Board. This board of
local citizens works to
'
provide
private
private additional funding fox fire equipment.
citizens not appointed by the City Council and has
This board is made up of
no management control or
1 19
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1994
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
A. Reporting Entity (Continued)
direct influence over operations of the Schertz Volunteer Fire Department. All
funds obtained by the board are used as the board sees fit with the City having no
authority, responsibility, or obligation.
For the year ending September 30, 1994, the comprehensive annual financial report
for the City of Schertz, Texas, has been prepared in accordance with Governmental
Accounting Standards Board Statement (GASH) No. 14, "The Financial Reporting
Entity ".
B. Fund Accounting
The City uses funds and account groups to report on its financial position and the
results of its operations. Fund accounting is designed to demonstrate legal
compliance and to aid financial management by segregating transactions related to
certain City functions or activities.
A fund is a separate accounting entity with a self - balancing set of accounts. An
account group, on the other hand, is a financial reporting device designed to
provide accountability for certain assets and liabilities that are not recorded in
the funds because they do not directly affect net expendable available financial
resources.
Funds are classified into two categories: governmental and proprietary. Each
category, in turn, is divided into separate "fund types ".
Governmental funds are used to account for all or most of a government's general
activities, including the collection and disbursement of earmarked monies (Special
Revenue Funds), the acquisition or construction of general fixed assets (Capital
Project Funds), and the servicing of general long -term debt (Debt Service Funds).
The General Fund is used to account for all activities of the City not accounted for
in some other fund.
Proprietary funds are used to account for activities similar to those found in the
private sector, where the determination of net income is necessary or useful to
sound financial administration. Goods or services from such activities can be
provided either to outside parties (enterprise funds) or to other departments.
C. Basis of Accounting
The accounting and financial reporting treatment applied to a fund is determined by
its measurement focus. All governmental funds are accounted for using a current
financial resources measurement focus. With this measurement focus, only current
assets and current liabilities generally are included on the balance sheet.
Operating statements of these funds present increases (i.e., revenues and other
financing sources) and decreases (i.e., expenditures and other financing uses) in
net current assets.
20
' CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS
' SEPTEMBER 30, 1994
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Basis of Accounting (Continued)
All proprietary funds are accounted for on a flow of economic resources measurement
focus. With this measurement focus, all assets and all liabilities associated with
the opexation of these funds are included on the balance sheet. Fund equity (i.e.,
' net total assets) is segregated into contributed capital and retained earnings
components. Proprietary fund -type operating statements present increases (e.g.,
revenues) and decreases (e.g., expenses) in net total assets.
' The modified accrual basis of accounting is used by all governmental fund types.
Under the modified accrual basis of accounting, revenues are recognized when
susceptible to accrual (i.e., when they become both measurable and available).
"Measurable" means the amount of the transaction can be determined and "available"
means collectible within the current period or soon enough thereafter to be used to
pay liabilities of the current period. The City considers property taxes as
available if they are collected within sixty (60) days after year end. A one -year
availability period is used for revenue recognition for all other governmental fund
revenues. Expenditures are recorded when the related fund liability is incurred.
Principal and interest on general long -term debt are recorded as fund liabilities
when due or when amounts have been accumulated in the Debt Service Fund for payments
to be made early in the following year.
' Those revenues susceptible to accrual are property taxes, franchise taxes, special
assessments, interest revenue, and charges for services. Licenses, fines, and
permits are not susceptible to accrual because generally they axe not measurable
until received in cash.
The accrual basis of accounting is utilized by proprietary fund types. Under this
' method, revenues are recorded when earned and expenses are recorded at the time
liabilities are incurred.
The City reports deferred revenue on its combined balance sheet. Deferred revenues
arise when a potential revenue does not meet both the "measurable" and "available"
criteria for recognition in the current period. Delinquent taxes are reported as
deferred revenue as they are not available for current use.
D. Budgets
' The City Charter establishes requirements for the adoption of budgets and related
budgetary control. Budgetary preparation and control is exercised at the
departmental level. The City Council must approve over- expenditures of
appropriations or transfers of appropriated amounts between departments. Amendments
' to budget total are made only by the City Council. The city manager is authorized
to amend the budget without City council approval by transferring budget amounts
between line items within a department. During the year amendments were necessary,
' all complied with city charter requirements.
Annual appropriated budgets are adopted for the general and debt service funds. The
' budgets are prepared using the modified accrual basis of accounting. All annual
appropriations lapse at fiscal year end. Project - length financial plans are adopted
21
CITY OF SCHERT2, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1994
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Budgets (Continued)
for all capital projects funds. In addition, as part of the overall budget process,
budgets are adopted for the proprietary fund; however, the City does not require a
reporting as part of the comprehensive annual financial report.
Encumbrances represent commitments related to unperformed contracts for goods or
services. Encumbrance accounting - under which purchase orders, contracts and other
commitments for the expenditure of resources are recorded to reserve that portion
of the applicable appropriation - is utilized in the governmental funds. Any
encumbrances outstanding at year end are reported as reservations of fund balances
and do not constitute expenditures or liabilities because the commitments will be
honored during the subsequent year.
E. Cash and Investments
Cash includes amounts in demand deposits as well as short -term certificates of
deposit with a maturity date within three (3) months of the date acquired by the
City.
Investments generally consists of certificates of deposit with a maturity date
greater than three (3) months of the date acquired by the City and are recorded at
cost, which approximates market value.
F. Short -Term Interfund Receivables /Pavables
During the course of operations, numerous transactions occur between individual
funds for goods provided or services rendered. These receivables and payables are
classified as "due from other funds" or "due to other funds" on the balance sheet.
Short -term interfund loans are classified as "interfund receivables /payables ".
G. Inventories
Inventories are valued at cost, which approximates market, using the first -in first -
out (FIFO) method. The costs of governmental fund -type inventories are recorded as
expenditures when consumed rather than when purchased.
H. Restricted Assets
Certain proceeds of Enterprise Fund revenue bonds, as well as certain resources set
aside for their repayment are classified as restricted assets on the balance sheet
because their use is limited by applicable bond covenants. Funds are segregated to
report those proceeds of revenue bond issuances that are restricted for use in
construction. Funds are also segregated to provide for debt services as provided
under bond indenture agreements.
22
CITY OF SCHERTZ, TEXAS
' NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1994
' NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
I. Fixed Assets
' General fixed assets are not capitalized in the funds used to acquire or construct
them. Instead, capital acquisition and construction are reflected as expenditures
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 are
capitalized and depreciated over the remaining useful lives of the related fixed
assets, as applicable.
' Public domain ( "infrastructure ") general fixed assets consisting of roads, bridges,
curbs and gutters, streets and sidewalks, drainage system, and lighting systems are
capitalized.
Assets in the general fixed assets account group are not depreciated. Depreciation
of buildings, equipment, and vehicles in the proprietary fund types is computed
using the straight -line method.
Interest is capitalized on proprietary fund assets acquired with tax - exempt debt.
' The amount of interest to be capitalized is calculated by offsetting interest
expense incurred from the date of the borrowing until completion of the project with
interest earned on invested proceeds over the same period.
' J. Compensated Absences
Vested or accumulated vacation leave that is expected to be liquidated with
' expendable available financial resources is reported as an expenditure and a fund
liability of the governmental fund that will pay it. Amounts of vested or
accumulated vacation leave that are not expected to be liquidated with expendable
' available financial resources are reported in the general long -term debt account
group. No expenditure is reported for these amounts. Vested or accumulated
vacation leave of proprietary funds is recorded as an expense and liability of those
funds as the benefits accrue to employees. In accordance with the provisions of
' Statement of Financial Accounting Standards No. 43, "Accounting for Compensated
Absences ", no liability is recorded for nonvesting accumulating rights to receive
sick pay benefits.
K. Short -Term Obligation
' Short -term debt, debt of less than a year duration, is recognized as a liability of
the governmental fund that incurred the obligation when the intent is to liquidate
the obligation from expendable available resources.
1 23
in governmental funds, and the related
assets are reported in the
general fixed
assets account group. All purchased
fixed assets are valued
at cost where
historical records are available and at
an estimated historical
cost where no
historical records exist. Donated fixed
assets are valued at their
estimated fair
market value on the date received.
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 are
capitalized and depreciated over the remaining useful lives of the related fixed
assets, as applicable.
' Public domain ( "infrastructure ") general fixed assets consisting of roads, bridges,
curbs and gutters, streets and sidewalks, drainage system, and lighting systems are
capitalized.
Assets in the general fixed assets account group are not depreciated. Depreciation
of buildings, equipment, and vehicles in the proprietary fund types is computed
using the straight -line method.
Interest is capitalized on proprietary fund assets acquired with tax - exempt debt.
' The amount of interest to be capitalized is calculated by offsetting interest
expense incurred from the date of the borrowing until completion of the project with
interest earned on invested proceeds over the same period.
' J. Compensated Absences
Vested or accumulated vacation leave that is expected to be liquidated with
' expendable available financial resources is reported as an expenditure and a fund
liability of the governmental fund that will pay it. Amounts of vested or
accumulated vacation leave that are not expected to be liquidated with expendable
' available financial resources are reported in the general long -term debt account
group. No expenditure is reported for these amounts. Vested or accumulated
vacation leave of proprietary funds is recorded as an expense and liability of those
funds as the benefits accrue to employees. In accordance with the provisions of
' Statement of Financial Accounting Standards No. 43, "Accounting for Compensated
Absences ", no liability is recorded for nonvesting accumulating rights to receive
sick pay benefits.
K. Short -Term Obligation
' Short -term debt, debt of less than a year duration, is recognized as a liability of
the governmental fund that incurred the obligation when the intent is to liquidate
the obligation from expendable available resources.
1 23
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1994
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
L. Long -Term Obligation
Long -term debt is recognized as a liability of a governmental fund when due, or when
resources have been accumulated in the debt service fund for payment early in the
following year. For other long -term obligations, only that portion expected to be
financed from expendable available financial resources is reported as a fund
liability of a governmental fund. The remaining portion of such obligations is
reported in the general long -term debt account group. Long -term liabilities
expected to be financed from proprietary fund operations are accounted for in those
funds.
M. Fund Equity
Contributed capital is recorded in proprietary funds that have received capital
grants or contributions from developers, customers, or other funds. Reserves
represent those portions of fund equity not appropriate for expenditure or legally
segregated for a specific future use. Designated fund balances represent tentative
plans for future use of financial resources.
N. Bond Discounts /Issuance Costs
In governmental fund types, bond discounts and issuance costs are recognized in the
current period. Bond discounts and issuance costs for proprietary fund types are
deferred and amortized over the term of the bonds using the bonds - outstanding
method, which approximates the effective interest method. Bond discounts are
presented as a reduction of the face amount of bonds payable whereas issuance costs
are recorded as deferred charges.
O. Interfund Transactions
Quasi - external transactions are accounted for as revenues, expenditures or expenses.
Transactions that constitute reimbursements to a fund for expenditures /expenses
initially made from it that are properly applicable to another fund, are recorded
as expenditures /expenses in the reimbursing fund and as reductions of
expenditures /expenses in the fund that is reimbursed.
All other interfund transactions, except quasi - external transactions and
reimbursements, are reported as transfers. Nonrecurring or non - routine permanent
transfers of equity are reported as residual equity transfers. All other interfund
transfers are reported as operating transfers.
P. Cash Flows Statement
For purposes of the statement of cash flows, the City considers all highly liquid
investments with an original maturity of approximately ninety days or less to be
cash equivalents.
24
L
u
CITY OF SCHERT2, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1994
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Q. Memorandum Only - Total Columns
Total columns on the general purpose financial statements are captioned "memorandum
only" to indicate that they are presented only to facilitate financial analysis.
Data in these columns do not present financial position, results of operations or
changes in cash flows in conformity with generally accepted accounting principles.
Neither are such data comparable to a consolidation. Interfund eliminations have
not been made in the aggregation of this data.
R. Comparative Data
Comparative total data for the prior year has been presented in the accompanying
financial statements in order to provide an understanding of changes in the
government's financial position and operations.
S. Reclassification
Certain 1993 amounts have been reclassified to conform to 1994 presentations.
NOTE 2: LEGAL COMPLIANCE - BUDGETS
On or before July each year, all agencies of the City submit request for appropriation
to the City Manager so that a budget may be prepared. The budget is prepared by fund,
department, function, and activity, and includes information on the past year, current
year estimates and requested appropriations for the next fiscal year.
Before September 30, the proposed budget is presented to the City Council for review,
modification, and approval. By state statute budgeted expenditures may not exceed
budgeted revenues.
Expenditures may not legally exceed budgeted appropriations at the fund level.
NOTE 3: DEPOSITS WITH FINANCIAL INSTITUTIONS
The City maintains demand deposit and savings accounts that axe available for the
individual funds from which they are generated. The funds accounts are displayed on the
combined balance sheet under the captions "Cash and Cash Equivalents or Investments."
At September 30, 1994, the bank balance of the City's deposits was $3,546,098 and the
bank balance per books was $3,416,625. This entire amount was covered by $300,000
federal depository insurance and pledged assets.
The collateral for the City's deposits is categorized to give an indication of the level
of risk assumed by the City at year end. Category 1 includes deposits that are insured
or registered or for which the securities are held by the City or its agent in the
25
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1994
NOTE 3: DEPOSITS WITH FINANCIAL INSTITUTIONS (CONTINUED)
City's name. Category 2 includes uninsured and unregistered deposits for which the
securities are held by the counterparty's trust department or agent in the City's name.
Category 3 includes uninsured and unregistered deposits for which the securities are
held by the counterparty's trust department or agent, but not in the City's name.
BANK
COLLATERAL
DEPOSITS
CATEGORY
BANK
BANK
COVERED BY
1 2
3 BALANCE
VALUE
FDIC Insurance
$ 300,000 $ -0-
$ -0- $ 300,000
$ 300,000
U. S. Treasury Notes and
Municipal Bonds
3,116,625 -0-
-0- 3,116,625
4,131,157
TOTAL DEPOSITS - CASH AND
CASH EQUIVALENTS AND
$3,416,625 $ -0- $ _0_ $3,416,625 $4,431,157
The City is allowed 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 or the United States; (4) obligations of states,
agencies, counties, cities, and other political subdivisions of any state having been
rated as to investment quality by a nationally recognized investment rating firm and
having received a rating of not less than "AA" or its equivalent; (5) certificates of
deposits issued by state and national banks domiciled in Texas that are guaranteed or
insured by the Federal Deposit Insurance Corporation or its successor, or secured by
obligations mentioned above; and (6) fully collateralized direct repurchase agreements
having a defined termination date.
For fiscal year September 30, 1994, the City invested in demand deposits, U. S. Treasury
Notes, or certificates of deposit.
NOTE 4: RECEIVABLES
Receivables at September 30, 1994 consist of the following:
RECEIVABLES
Taxes
Account
Interest
Gross Receivables
Less: Allowance for
Uncollectible
NET TOTAL RECEIVABLES
DEBT CAPITAL
GENERAL SERVICE PROJECTS ENTERPRISE TOTAL
$58,460 $12,701 $ - $ - $ 71,161
12,282 - - 449,032 461,314
3,013 3,013
$70,742 $12,701 $3,013 $449,032 $535,488
2,923 635 112,360 115,918
67 819 JIL6066 $3,013 $336,672 $419,570
The delinquent taxes receivable account represents past years of uncollected tax levies
and is also reflected as a deferred revenue of equal amount.
26
I
U
I
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F
1
1
CITY OF SCHERT2, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30 1994
NOTE 4: RECEIVABLES (CONTINUED)
Property taxes are levied as of October 1 on property values assessed as of January 1.
Property taxes are payable on or before January 31 following the levy date without
penalty or interest. Unpaid property taxes attach as an enforceable lien on property
as of February 1 with penalty and interest. On July 1, unpaid taxes are forwarded fox
collection and are subject to additional penalties for collection expenses.
NOTE 5: GENERAL FIXED ASSETS
The following is a summary of changes in general fixed assets:
$9,924,652 $539,065 75,122
BALANCES AT
SEPTEMBER 30,
1994
$ 403,589
1,114,290
7,197,121
704,390
969,205
$10,388,595
*Adjusted to Include Land of $21,713 in the Schertz..Development Foundation
The following is a summary of the pxopexty, plant, and equipment of the Proprietary
Funds at September 30, 1994:
Buildings
Improvements Other than Buildings
Machinery and Equipment
Construction in Progress
Accumulated Depreciation
Land
ENTER]
WATER /SEWER
$ 195,724
8,980,331
501,946
88,602
$9,766,603
4,535,176
$5,231,427
160,521
)RISE INTERNAL
SAFES SERVICE TOTAL
$ 26,656 $58,804 $ 281,184
- - 8,980,331
357,910 23,076 882,932
88,602
$384,566 $81,880 $10,233,049
233,231 20,887 4,789,294
$151,335 $60,993 $ 5,443,755
- - 160,521
$5,391,948 $151,335 $60,993 S 5,604,276
In the proprietary and internal service funds, the following useful lives are used to
compute depreciation:
' Buildings
Sewer and Water Lines
Equipment
U
30 Years
50 Years
5 - 10 Years
27
BALANCES AT
OCTOBER 1,
1993
ADDITIONS
DEDUCTION:
Land
$ 409,563*
$ -
$ 5,974
Buildings
1,114,290
-
-
Improvements Other than
Buildings
6,822,748
374,373
-
Vehicles
698,940
51,460
46,010
Equipment
879,111
113,232
23,138
$9,924,652 $539,065 75,122
BALANCES AT
SEPTEMBER 30,
1994
$ 403,589
1,114,290
7,197,121
704,390
969,205
$10,388,595
*Adjusted to Include Land of $21,713 in the Schertz..Development Foundation
The following is a summary of the pxopexty, plant, and equipment of the Proprietary
Funds at September 30, 1994:
Buildings
Improvements Other than Buildings
Machinery and Equipment
Construction in Progress
Accumulated Depreciation
Land
ENTER]
WATER /SEWER
$ 195,724
8,980,331
501,946
88,602
$9,766,603
4,535,176
$5,231,427
160,521
)RISE INTERNAL
SAFES SERVICE TOTAL
$ 26,656 $58,804 $ 281,184
- - 8,980,331
357,910 23,076 882,932
88,602
$384,566 $81,880 $10,233,049
233,231 20,887 4,789,294
$151,335 $60,993 $ 5,443,755
- - 160,521
$5,391,948 $151,335 $60,993 S 5,604,276
In the proprietary and internal service funds, the following useful lives are used to
compute depreciation:
' Buildings
Sewer and Water Lines
Equipment
U
30 Years
50 Years
5 - 10 Years
27
CITY OF SCNERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1994
NOTE 6: LONG -TERM DEBT
A. General Long -Term Debt
The following is a summary of changes in general long -term debt for the year ended
September 30, 1994:
Certificates
of Obligation
1990 Series
Public Property
Finance
Contractual
Obligation
1991 Series
TOTAL GENERAL
OBLIGATION
BONDS,
CERTIFICATES
OF OBLIGA-
TION AND CON-
TRACTUAL
OBLIGATION
850,000 7 - 9.0% $ 780,000 $ _0_ $40,000 $ 740,000
125,000
Compensated Absences Payable
7.25% $ 70,000 $ -0- $ 35,000 $ 35,000
$2,102,000 $ -0- $133,000 $1,969,000
BALANCE
OUTSTANDING
OCTOBER 1,
1993 ADDITIONS
$83,790 $102,248
28
BALANCE
OUTSTANDING
SEPTEMBER 30,
DEDUCTIONS 1994
$83,790 $102,248
BALANCE
BALANCE
OUTSTANDING
OUTSTANDING
ORIGINAL
INTEREST
OCTOBER 1,
DURING
YEAR
SEPTEMBER 30,
AMOUNT
RATE
1993
ISSUED
RETIRED
1994
General Obligation
Bonds
1962
Series
$301,000
3.63%
$ 97,000
$ -
$11,000
$ 86,000
1972
Series
150,000
3.63%
25,000
-
12,000
13,000
1975
Series
175,000
6.2 - 7.0%
150,000
-
10,000
140,000
1987
Series
445,000
6.2 - 8.3%
360,000
-
25,000
335,000
1992
Series
620,000
5.2 - 7.2%
620,000
-
-
620,000
$1,252,000
$ -0-
$58,000
$1,194,000
Certificates
of Obligation
1990 Series
Public Property
Finance
Contractual
Obligation
1991 Series
TOTAL GENERAL
OBLIGATION
BONDS,
CERTIFICATES
OF OBLIGA-
TION AND CON-
TRACTUAL
OBLIGATION
850,000 7 - 9.0% $ 780,000 $ _0_ $40,000 $ 740,000
125,000
Compensated Absences Payable
7.25% $ 70,000 $ -0- $ 35,000 $ 35,000
$2,102,000 $ -0- $133,000 $1,969,000
BALANCE
OUTSTANDING
OCTOBER 1,
1993 ADDITIONS
$83,790 $102,248
28
BALANCE
OUTSTANDING
SEPTEMBER 30,
DEDUCTIONS 1994
$83,790 $102,248
1
CITY OF SCRERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30. 1994
' NOTE 6: LONG -TERM DEBT (CONTINUED)
1 29
A. General Long
-Term Debt
(Continued)
1
PUBLIC PROPERTY
FINANCE
'
YEAR ENDED
SEPTEMBER 30,
GENERAL
OBLIGATION
CERTIFICATE OF
OBLIGATION
CONTRACTUAL
OBLIGATION
1995
$ 159,139
$ 98,848
$36,269
'
1996
160,314
94,797
-
1997
154,435
95,523
1998
154,298
96,347
-
1999
152,736
97,293
-
t
2000 -2004
562,617
504,656
Thereafter
372,520
93,262
'
TOTAL
$1,716,059
$1,080,726
$36,269
Principal
$1,194,000
$ 740,000
$35,000
Interest
522,059
340,726
1,269
TOTAL
$1,716,059
$1,080,726
$36,269
'
B. Proprietary Long -Term Debt
The following
is a summary of
changes
in proprietary
long -term debt for the year ended
'
September 30,
1994:
BALANCE
BALANCE
OUTSTANDING
OUTSTANDING
'
ORIGINAL
INTEREST
OCTOBER 1,
SEPTEMBER 30,
AMOUNT
RATE
1993
ISSUED RETIRED
1994
Revenue Bonds
1968 Series $
579,000
4.0
- 5.75%
$ 75,000
$ - $35,000
$ 40,000
1973 Series
165,000
5.75
- 6.10%
165,000
- -
165,000
'
1975 Series
325,000
7.0
- 7.75%
225,000
- 10,000
215,000
1981 Series
475,000
9.0
- 10.0%
255,000
35,000
220,000
1980 Series
1,020,000
6.3
- 8.30%
930,000
15,000
915,000
'
$1,650,000
$ -0- $95,000
$1,555,000
'
Certificates
of Obliga-
tion
1981 Series $
150,000
9.3 -
10.00%
$ 75,000
$ - $10,000
$ 65,000
1983 Series
1,250,000
8.2 -
10.00%
870,000
- 60,000
810,000
1992 Series
200,000
200,000
10,000
190,000
'
$1,145,000
$ -0- $80,000
$1,065,000
1 29
1
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1994
NOTE 6: LONG -TERM DEBT (CONTINUED)
'
B: Proprietary
Long -Term Debt (Continued)
BALANCE
BALANCE
OUTSTANDING
OUTSTANDING
ORIGINAL
AMOUNT
INTEREST OCTOBER 1,
RATE 1993
ISSUED
SEPTEMBER 30,
RETIRED 1994
,
Public
Facility
Loan (HUD)
$ 142,000
5% $ 92,000
$ -0-
4,000
$ 88,000
'
Note Payable
$ 273,000
7.6% $ 235,787
$ -
$19,151
$ 216,636
Note Payable
$ 30,000
8.25% -
30,000
-
30,000
'
$ 235,787
$30,000
$19,151
$ 246,636
The annual requirements to
amortize all debt outstanding as
of September 30, 1994
'
including interest payments
are as follows:
HUD
CERTIFICATES
PUBLIC
YEAR ENDED
REVENUE
OF
FACILITY
NOTES
SEPTEMBER 30,
BONDS OBLIGATION
LOAN
PAYABLE
t
1995
$ 215,028 $
175,985
$ 8,400
$ 69,687
1996
- 207,587
183,338
8,200
37,212
1997
204,938
189,220
8,000
37,212
'
1998
196,832
193,870
7,800
37,212
1999
218,797
168,200
7,600
37,212
2000 -2004
894,813
601,090
35,000
111,636
Thereafter
453,162
-
63,600
-
'
$2,391,157 $1,511,703
$138,600
$330,171
,
Pxincipal
$1,555,000 $1,065,000
$ 88,000
$246,636
Interest
836,157
446,703
50,600
83,535
$2,391,157 $1,511,703 $138,600 $330,171
Bonded debt of the City consists of various series of general obligation bonds, revenue
bonds, certificates of obligation, public facility loan (HUD), public property finance
contractual obligations, and two notes payable. General obligation bonds are direct
obligations of the City for which its full faith and credit are pledged, and are payable
from taxes levied on all taxable property located within the City. Revenue bonds are
generally payable from pledged revenues generated by water and sewer fund. The debenture
agreement for water and sewer bonds require funds be available for 1 /12th the principal
and 1 /6th the interest requirements of the next fiscal year. Certificates of obligation
axe payable from a levy of ad valorem taxes upon all taxable property within the City, and
axe further payable from certain net revenues derived from the operation of the City's
combined water and sewer systems after payments of first lien revenue bonds. The public
30
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CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1994
NOTE 6: LONG -TERM DEBT (CONTINUED)
B: Proprietary Long -Term Debt (Continued)
loan is payable from gross revenue derived from operations of the water and sewer systems
and has equal status with first lien revenue bonds. Public property finance contractual
obligations are payable from a levy of ad valorem taxes upon all taxable property within
the City. The notes payable are payable from revenues generated by the water and sewer
fund.
The City is mandated to maintain revenue reserves at least 1.5 times the average annual
revenue bond debt service requirements. The City was in compliance.
NOTE 7: INTERFUND ASSETS /LIABILITIES
The following is a summary of amounts due from and due to other funds as of September 30,
1994:
DUE FROM DUE TO
OTHER FUNDS OTHER FUNDS
General Fund
$351,531
$ -
Special Revenue Funds
Library
-
115
Forestry
-
767
Debt Service
-
142,603
Capital Projects
16,743
388,907
Bond Issues
-
97,660
Enterprise Funds
Other Income (Expenses)
(131,595)
Water and Sewer System
15,690
109,736
SAFES
-
1,733
Internal Revenue Fund
1,083
15,690
$368,304 $368,304
NOTE 8: SEGMENT INFORMATION - ENTERPRISE FUNDS
The City has two (2) enterprise operations which provide water /sewer and emergency
ambulance services. Segment information for the twelve month period ended September 30,
1994, is as follows:
_
WATER /SEWER
SAFES
TOTAL
Operating Revenues
$1,997,654
$495,282
$2,492,936
Operating Expenses, Exclusive of Depreciation
1,206,670
367,956
1,574,626
Depreciation
372,164
16,743
388,907
Operating Income
$ 418,820
$110,583
$ 529,403
Other Income (Expenses)
(131,595)
4,796
(126,799)
Operating Transfers - Out
(67,400)
-
(67,400)
NET INCOME
31
$ 219,825 $115,379 $ 335,204
CITY OF SCRERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1994
NOTE 8: SEGMENT INFORMATION - ENTERPRISE FUNDS (CONTINUED)
Total Assets
- $7,087,843
$446,136
$7,533,979
Total Equity
$3,782,081
$404,360
$4,186,441
Working Capital
$ 229,870
$253,025
$ 482,895
Additions to Fixed Assets
$ 568,114
26,077
$ 594,191
Outstanding Long -Term Debt
$2,924,636
30,000
$2,954,636
NOTE 9: CONTRIBUTED CAPITAL
During the year, contributed capital increased by the following amounts:
SOURCE
Developers -
Federal Financial Assistance
Volunteers
Total Additions
Contributed Capital, October 1
CAPITAL, SEPTEMBER 30
NOTE 10: OPERATING TRANSFERS
WATER AND
SEWER SAFES
FUND FUND
$ 136,654 $ -
69,864 -
1,815
$ 206,518 $ 1,815
3,333,537 224,954
INTERNAL
SERVICE
FUND TOTAL
$ - $ 136,654
69,864
1,815
$ -0- $ 208,333
63,577 3,622,068
$3,540,055 226,769 $63,577 $3,830,401 '
Operating transfers are comprised as follows:
IN OUT
General Fund $ - $245,176
Debt Service Fund 312,576 -
Enterprise - Water and Sewer - 67,400
$312,576 JILL576
NOTE 11: DEFICIT RETAINED EARNINGS
For the year ended September 30, 1994, the Internal Service Fund has a deficit retained
earnings balance of $15,487. This occurred because sufficient transfers were not made
from other funds to supplement revenue in order to exceed expenditures. This will be
corrected in the coming fiscal year.
NOTE 12: PENSION PLAN
Description
The City provides pension benefits for all of its full -time employees through a
nontraditional, joint contributory, defined contribution plan in the state -wide Texas
Municipal Retirement System (TMRS), one of over 613 administered by TMRS, an agent
multiple - employer public employee retirement system. It is the opinion of the TMRS
management that the plans in TMRS are substantially defined contribution plans, but they
have elected to provide additional voluntary disclosure to help foster a better
understanding of some of the nontraditional characteristics of the plan.
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CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1994
NOTE 12: PENSION PLAN (CONTINUED)
Description (Continued)
Benefits depend upon the sum of the employee's contributions to the plan, with interest,
and the City- financed monetary credits, with interest. At the date the plan began, the
City granted monetary credits for service rendered before the plan began of a theoretical
amount equal to two times what would have been contributed by the employee, with interest,
prior to establishment of the plan. Monetary credits for service since the plan began are
a percent (100 %, 150%, or 200 %) of the employee's accumulated contributions. In addition,
the City can grant as often as annually another type of monetary credit referred to as an
updated service credit which is a theoretical amount which, when added to the employee's
accumulated contributions and the monetary credits for service since the plan began, would
be the total monetary credits and employee contribution accumulated with interest if the
current employee contribution rate and city matching percent had always been in existence
and if the employee's salary had always been the average of his salary in the last three
years that are one year before the effective date. At retirement, the benefit is
calculated as if the sum of the employee's accumulated contributions with interest and the
employer- financed monetary credits with interest were used to purchase an annuity.
Members can retire at ages sixty (60) and above with ten (10) or more years of service or
with twenty -five (25) years of service regardless of age. The plan also provides death
and disability benefits. A member is vested after ten (10) yeaxs, but he must leave his
accumulated contributions in the plan. If a member withdraws his own money, he is not
entitled to the employer- financed monetary credits, even if he was vested. The plan
provisions are adopted by the governing body of the City, within the options available in
the state statutes governing TMRS and within the actuarial constraints also in the
statutes.
Contributions
The contribution rate for the employees is 5 %, and the City matching percent is currently
100 %, both as adopted by the governing body of the City. Under the state law governing
TMRS, the City contribution rate is annually determined by the actuary. This rate
consists of the normal cost contribution rate and the prior service contribution rate,
both of which are calculated to be a level percent of payroll from year to year. The
normal cost contribution rate finances the currently accruing monetary credits due to City
matching percent, which are the obligation of the City as of an employee's retirement
date, not at the time the employee's contributions are made. The normal cost contribution
rate is the actuarially determined percent of payroll necessary to satisfy the obligation
of the City to each employee at the time his retirement becomes effective. The prior
service contribution rate amortizes the unfunded actuarial liability over the remainder
of the plan's twenty -five (25) year amortization period. When the City periodically
adopts updated service credits and increases in annuities in effect, the increased
unfunded actuarial liability is to be amortized over a new twenty -five (25) year period.
Currently, the unfunded actuarial liability is being amortized over the twenty -five (25)
year period which began February, 1993. The unit credit actuarial cost method is used for
determining the City contribution rate. Contributions are made monthly by both the
employees and the City. Since the City needs to know its contribution rate in advance to
budget for it, there is a one (1) year lag between the actuarial valuation that is the
basis for the rate and the calendar year when the rate goes into effect.
33
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1994
NOTE 12: PENSION PLAN (CONTINUED)
The City's total payroll in fiscal year 1994 was $1,736,372 and the City's contributions
were based on a payroll of $1,633,256. Both the City and the covered employees made the
required contributions, amounting to $70,991, (4.33% for the months in calendar year 1994,
2.45% normal cost plus 1.88% to amortize the unfunded actuarial liability) for the City
and $81,666 (5%) for the employees. There were no related -party transactions.
Funding Status and Progress
Even though the substance of the City's plan is not to provide a defined benefit in some
form, some additional voluntary disclosure is appropriate due to the nontraditional nature
of the defined contribution plan which had an initial unfunded pension benefit obligation
due to the monetary credits granted by the City for services rendered before the plan
began and which can have additions to the unfunded pension benefit obligation through the
periodic adoption of increases in benefit credits and benefits. Statement No. 5 of the
Governmental Accounting Standards Board (GASB 5) defines pension benefit obligation as a
standardized disclosure measure of the actuarial present value of pension benefits,
adjusted for the effects of projected salary increases, estimated to be payable in the
future as a result of employee service to date. The measure is intended to help users
assess the funding status of public employee pension plans, assess progress made in
accumulating sufficient assets to pay benefits when due, and make comparisons among public
employee pension plans.
The pension benefit obligation shown below is similar in nature to the standardized
disclosure measure required by GASB 5 for defined benefit plans except that there is no
need to project salary increases since the benefit credits earned for service to date are
not dependent upon future salaries. The calculations were made as part of the annual
actuarial valuation as of December 31, 1993. Because of the money- purchase nature of the
plan the interest rate assumption, currently 8.5% per year, does not have as much impact
on the results as it does for a defined benefit plan. Market value of assets is not
determined for each city's plan, but the market value of assets for TMRS as a whole was
118.0% of book value as of December 31, 1993.
Pension Benefit Obligation
Annuitants Currently Receiving Benefits $ 41,436
Terminated Employees -
Current Employees
Accumulated Employee Contributions Including
Allocated Invested Earnings 69,845
Employer- Financed Vested 387,674
Employer - Financed Nonvested 155.427
TOTAL JE1jJB2
Net Assets Available for Benefits, at Book Value $133,346
Unfunded Pension Benefit Obligation $521,036
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CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1994
NOTE 12: PENSION PLAN (CONTINUED)
The book value of assets is amortized cost for bonds and original cost for short -term
securities and stocks. The actuarial assumptions used to compute the actuarially
determined city contribution rate are the same as those used to compute the pension
benefit obligation.
Trend Information
The three (3) year historical trend information is being developed prospectively. Because
the City joined the Texas Municipal Retirement System (TMRS) during 1993, only information
for year ended September 30, 1994 is available as follows:
YEAR ENDED
SEPTEMBER 30,
1994
Net Assets Available for Benefits as a
Percentage of the Pension Benefit obligation 20.38%
Unfunded (Assets in Excess of) Pension Benefit
Obligation as a Percentage of covered Payroll 31.90%
Employer Contributions as a Percentage of
Covered Payroll 4.35%
The ten year historical trend information can be found in the annual reports of the TMRS
The TMRS annual report contains detailed pension information on each of its members.
NOTE 13: PRIOR PERIOD ADNSTMENT
Prior period adjustments occurred in two (2) funds. For the year ended September 30,
1994, the Water and Sewer System has been restated to include the Capital Recovery Fund
which in previous years had been reported as a capital projects fund. Capital recovery
revenues are earmarked for specific capital improvements in the Water and Sewer System.
For the statement of cash flows, cash and cash equivalents at October 1, 1993 has been
restated to include the Capital Recovery Funds of $464,272.
The SAFES fund was restated for the reconciliation of accounts receivable as of October 1,
1993.
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INDIVIDUAL FUND AND
' ACCOUNT GROUP STATEMENTS AND SCHEDULES
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FUND
t The General Fund accounts fox the resources used to finance the fundamental operations of
the City. It is the basic fund of the City and covers all activities for which a separate
fund has not been established.
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40
' CITY OF SCHERTZ, TEXAS
GENERAL FUND
COMPARATIVE BALANCE SHEETS
' SEPTEMBER 30, 1994 AND 1993
' (See Accompanying Notes to Financial Statements)
' 41
SEPTEMBER 30,
t1994
1993
ASSETS
'
Cash and Cash Equivalents
$431,772
$ 54,992
Investments
29,157
482,306
'
Accounts Receivable
Delinquent Taxes Receivable (Net of Allowances)
12,282
55,537
13,624
67,758
Due from Other Funds
351,531
51,176
Inventory of Supplies, at Cost
14,378
18,605
'
Other Receivables
-
33
TOTAL ASSETS
$894,657
$688,494
LIABILITIES AND FUND BALANCES
LIABILITIES
'
Vouchers Payable
$ 18,013
$ 39,691
Notes Payable
35,333
35,963
Deferred Revenue
55,537
67,758
'
Total Liabilities
$108,883
$143,412
FUND BALANCES
Reserved for Park Improvements
$ 13,293
$
'
Reserved for Forfeited Property
3,309
Reserved for Inventory of Supplies
14,378
18,605
Unreserved
'
Designated for Economic Development
18,821
18,821
Designated for Equipment Replacement
15,144
15,144
Designated for Self - Insurance
45,000
45,000
Undesignated
675,829
447,512
'
Total Fund Balances
$785,774
$545,082
TOTAL LIABILITIES AND FUND BALANCES
112it.657
$688,494
' (See Accompanying Notes to Financial Statements)
' 41
CITY OF SCHERTZ, TEXAS
GENERAL FUND
COMPARATIVE SCHEDULES. OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
(GAAP BASIS)
YEAR ENDED SEPTEMBER 30, 1994
REVENUES
Taxes
Licenses and Permits
Charges for Services
Fines and Forfeitures
Other Sources
Total Revenues
Current
General Government
Public Safety
Streets and Parks
Health
Recreation
Economic Development
Capital Outlay
Total Expenditures
Excess of Revenues over
Expenditures
OTHER FINANCIAL SOURCES (USES)
Operating Transfers - (Out)
Excess of Revenues and
Other Financing Sources
over Expenditures and
Other Financing Uses
FUND BALANCES - OCTOBER 1
FUND BALANCES
SEPTEMBER 30
$ 783,171
1994
$ 38,370
$ 741,305
1,045,896
978,121
VARIANCE
924,222
360,099
305,633
FAVORABLE
373,213
BUDGET
ACTUAL
(UNFAVORABLE)
1993
$2,038,945
$2,109,202
$ 70,257
$1,895,333
118,000
145,229
27,229
173,310
340,725
343,731
3,006
327,434
205,200
195,964
(9,236)
196,200
166,408
133,344
(33,064)
104,023
$2,869,278
$2,927,470
$ 58,192
$2,696,300
$ 783,171
$ 744,801
$ 38,370
$ 741,305
1,045,896
978,121
67,775
924,222
360,099
305,633
54,466
373,213
84,967
80,494
4,473
75,441
168,784
157,437
11,347
135,546
39,707
41,887
(2,180)
37,426
137,716
133,229
4,487
108,863
$2,620,340
$2,441,602
$178,738
$2,396,016
$ 248,938
$ 485,868
$236,930
$ 300,284
(241,885)
(245,176)
(3,291)
(184,792)
$ 7,053
$ 240,692
$233,639
$ 115,492
545,082
545,082
429,590
$ 552,135 $ 785,774 k233,639 $ 545,082
(See Accompanying Notes to Financial Statements)
42
' CITY OF SCHERTZ, TEXAS
' GENERAL FUND
SCHEDULE OF REVENUES COMPARED TO BUDGET
' YEAR ENDED SEPTEMBER 30, 1994
'
1994
VARIANCE
FAVORABLE
1993
'
BUDGET
ACTUAL
(UNFAVORABLE)
ACTUAL
REVENUES
Taxes
'
Ad Valorem
$1,213,507
$1,207,203
$ (6,304)
$1,100,837
Tax Penalty
13,000
11,235
(1,765)
10,519
City Sales Tax
590,000
653,126
63,126
563,677
Utility Franchise
221,038
225,839
4,801
217,103
other
1,400
11,799
10,399
3,197
Total Taxes
$2,030,945
$2,109,202
$ 70,257
$1,895,333
Licenses and Permits
$ 118,000
$ 145,229
$ 27,229
$ 173,310
Charges for Services
'
Utility Administration
$ 210,000
$ 210,0000
$ -
$ 198,333
Swimming Pool
31,375
28,421
(2,954)
29,156
Animal Shelter
3,000
4,166
1,166
3,036
'
Building Rental
7,500
8,835
1,335
6,782
Library and Fire
68,650
72,226
3,576
67,245
Other
20,200
20,083
(117)
22,882
'
Total Charges for Services $ 340,725
$ 343,731
$ 3,006
$ 327,434
Fines and Forfeitures
$ 205,200
$ 195,964
$ (9,236)
$ 196,200
'
Other Sources
Reimbursements
$ 15,000
$ -
$(15,000)
$ 11,002
Substance Abuse
21,000
22,661
1,661
20,480
Retirement Reversions
-
-
-
14,699
'
Cibolo Creek Municipal
Authority 6,200
6,560
360
5,.694
Interest
7,500
14,495
6,995
8,853
Emergency Management Coordinator 7,000
6,859
(141)
11,142
'
Sale of Assets
4,800
1,523
(3,277)
2,778
Insurance Proceeds
3,000
27,293
24,293
-
Miscellaneous
101,908
53,953
(47,955)
29,375
'
Total Other Sources
$ 166,408
$ 133,344
$(33,064)
$ 104,023
TOTAL REVENUES
$2,869,278
$2,927,470
5$ 8,192
- $2,696,300
(See Accompanying Notes to Financial Statements)
1 43
'
CITY OF SCHERTZ, TEXAS
GENERAL FUND
,
SCHEDULE
OF EXPENDITURES
COMPARED TO
BUDGET
(GAAP BASIS)
'
YEAR ENDED SEPTEMBER 30, 1994
1994
VARIANCE
'
FAVORABLE
1993
BUDGET
ACTUAL
(UNFAVORABLE)
ACTUAL
CURRENT
,
General Government
City Council
$ 19,000
$ 14,119
$ 4,881
$ 14,543
City Manager
151,450
155,059
(3,609)
138,735
'
Tax
79,988
78,089
1,899
89,213
Planning and Zoning
112,820
108,634
4,186
81,879
Legal
55,100
76,468
(21,368)
74,384
'
Municipal Court
59,122
52,619
6,503
53,239
Municipal Building
98,984
93,250
5,734
100,146
General Administration
97,887
95,901
1,986
96,668
Other - Unclassified
108,820
70,662
38,158
92,498
'
Total General Government
$ 783,171
$ 744,801
$ 38,370
$ 741,305
PUBLIC SAFETY
'
Police Department
$ 730,367
$ 681,915
$ 48,452
$ 655,303
Fire Department
260,268
244,413
15,855
215,640
Inspection
55,261
51,793
3,468
53,279
Total Public Safety
$1,045,896
$ 978,121
$ 67,775
$ 924,222
'
STREETS AND PARKS
Streets
$ 269,012
$ 220,829
$ 48,183
$ 280,292
,
Parks
91,087
84,804
6,283
92,921
Total Streets and Parks
$ 360,099
$ 305,633
$ 54,466
$ 373,213
'
HEALTH
Animal control
S 84,967
$ 80,494
$ 4,473
$ 75,441
RECREATION
'
Swimming Pool
$ 57,101
$ 46,416
$ 10,685
$ 53,564
Library
Total Recreation
111,683
S 168,784
111,021
662
$ 11,347
81,982
$ 135,546
$ 157,437
ECONOMIC DEVELOPMENT
S 39,707
$ 41,887
$ (2,180)
$ 37,426
$ 137,716
$ 133,229
$ 4,487
$ 108,863
'
CAPITAL OUTLAY
TOTAL EXPENDITURES
$2,620,340
52,441,602
.178,738
52,3964016
,
'
(See Accompanying Notes to Financial Statements)
44
'
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SPECIAL REVENUE FUNDS
Special Revenue Funds account for the proceeds of specific revenue sources (other than
expendable trusts or for major capital projects) that are legally restricted to
' expenditure for specified purposes.
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CITY OF SCHERTZ, TEXAS
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
YEAR ENDED SEPTEMBER 30, 1994
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1993)
ASSETS
Cash and Cash Equivalents
Investments
Prepaid Expenses
TOTAL ASSETS
LIABILITIES AND FUND BALANCES
LIABILITIES
Accrued Taxes
Due to Other Funds
Total Liabilities
FUND BALANCES
Unreserved
Undesignated
TOTAL LIABILITIES AND
FUND BALANCES
SCHERTZ
DEVELOPMENT TOTALS
LIBRARY FORESTRY FOUNDATION 1994 1993
$ 5,699
$ -
$ 8,263
$13,962
$ 4,753
12,620
780
10,094
23,494
12,216
4,500
4,500
$18,319
780
$22,857
$41,956
$16,969
$ -
$ -
$ 2,645
$ 2,645
$ -
115
767
882
115
$ 115
$767
$ 2,645
$ 3,527
$ 115
18,204 13 20,212 38,429 16,854
$18,319 $780 $22,857 $41,956 $16,969
(See Accompanying Notes to Financial Statements)
46
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CITY OF SCHERTZ, TEXAS
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES
YEAR ENDED SEPTEMBER 30, 1994
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1993)
REVENUES
Other
Donations
State Grant
Gain on Sale of Land
Interest
Total Revenues
General and Administrative
Contractual Services
Supplies /Maintenance
Interest
Total Expenditures
Excess of Revenues
Over Expenditures
FUND BALANCES
(DEFICIT) - OCTOBER 1
FUND BALANCES -
SEPTEMBER 30
SCHERTZ
DEVELOPMENT TOTALS
LIBRARY FORESTRY FOUNDATION 1994 1993
$ 4,600
$ -
$ -
$ 4,600
$ 4,723
-
2,500
-
2,500
-
-
-
53,894
53,894
-
408
6
279
693
5 008
$2,506
$54,173
$61,687
4,723
$ -
$ -
$ 3,949
$ 3,949
$ -
-
588
4,640
5,228
-
3,658
1,905
2,000
7,563
1,681
3,305
3,305
3,658
$2,493
$13,894
$20,045
1,681
$ 1,350
$ 13
$40,279
$41,642
$ 3,042
16,854
-
(20,067)
(3,213)
13,812
$18,204 S 13 $20,212 $38,429 $16,854
(See Accompanying Notes to Financial Statements)
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DEBT SERVICE FUND
' This fund is used to account for the accumulation of resources for and the payment of
principal, interest, and related costs on general long -term debt of the City.
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CITY OF SCHERTZ, TEXAS
DEBT SERVICE FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 1994
ASSETS
Cash and Cash Equivalents
Delinquent Taxes Receivable (Net of Allowances)
Investments
TOTAL ASSETS
LIABILITIES AND FUND BALANCE
LIABILITIES
Due to Other Funds
Deferred Revenue
Ad Valorem Taxes
Total Liabilities
FUND BALANCE
Reserved fox Debt Service
TOTAL LIABILITIES AND FUND BALANCE
(See Accompanying Notes to Financial Statements)
50
SEPTEMBER 30,
1994 1993
$ 3,881 $61,351
12,066 13,824
200,594
$216,541 $75,175
$142,603 $17,386
12,066 13,824
$154,669 $31,210
61,872 43,965
$216,541 $75,175
1
CITY OF SCHERTZ, TEXAS
DEBT SERVICE FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
YEAR ENDED SEPTEMBER 30, 1994
REVENUES
Interest Income
Debt Service
Bond Principal
-Bond Interest
Fiscal Agent Fees
Total Expenditures
Excess of Revenues Over
(Under) Expenditures
OTHER FINANCING SOURCES (USES)
Operating Transfers In
Excess of Revenues
(Deficiency) and Other
Financing Sources Over
(Under) Expenditures and
Other Financing Uses
FUND BALANCES - OCTOBER 1
FUND BALANCES -
SEPTEMBER 30
1994
VARIANCE
FAVORABLE
BUDGET ACTUAL (UNFAVORABLE) 1993
S S 289
$ 133,000 $ 133,000
158,972 158,972
2,986 2,986
$ 294,958 $ 294,958
289 $ 3,502
$ - $ 101,660
90,123
4,536
$ -0- $ 196,319
$(294,958) $(294,669) $ 289 $(192,817)
241,885 312,576
$ (53,073) $ 17,907
43,965 43,965
$ (9,108) $ 61,872
(See Accompanying Notes to Financial Statements)
51
70,691 184,792
$70,980 $ (8,025)
51,990
$70,980 $ 43,965
(This Page Intentionally Left Blank)
52
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CAPITAL PROJECTS FUNDS
The Capital Projects Fund accounts for financial resources to be used for the acquisition
' or construction of major capital facilities (other than those financed by proprietary fund
types.)
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CITY OF SCHERTZ, TEXAS
CAPITAL PROJECTS FUND
COMBINING BALANCE SHEET
SEPTEMBER 30, 1994
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1993)
ASSETS
Cash and Cash Equivalents
Investments
Accrued Interest
TOTAL ASSETS
LIABILITIES AND FUND BALANCES
LIABILITIES
Due to Other Funds
FUND BALANCES
Unreserved - Designated for
Capital Improvements
TOTAL LIABILITIES AND
FUND BALANCES
ANIMAL TOTALS
BOND ISSUES CONTROL 1994 1993
$ - $ - $ - $ 138,974
1,194,953 - 1,194,953 981,264
3,013 - 3,013 3,013
$1,197,966 $ -0- $1,197,966 $1,123,251
$ 97,660 $ - $ 97,660 $ 69,033
1,100,306 - 1,100,306 1,054,218
$1,197,966 $ -0- $1,197,966 $1,123,251
(See Accompanying Notes to Financial Statements)
54
CITY OF SCHERTZ, TEXAS
CAPITAL PROJECTS FUND
COMBINING STATEMENTS OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE
YEAR ENDED SEPTEMBER 30, 1994
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1993)
REVENUES
other
Private Grant
Interest Income
Litigation Settlement
Total Revenues
EXPENDITURES
Capital Outlay
Capital Projects
Animal Control
Total Expenditures
Excess of Revenues Over
(Under) Expenditures
OTHER FINANCING SOURCES (USES)
Certificate of Obligation
Proceeds
Operating Transfers - In
Total Other Financing
Sources (Uses)
Excess of Revenues
(Deficiency) and Other
Financing Sources Over
(Under) Expenditures and
Other Financing Uses
FUND BALANCES - OCTOBER 1. 1993
FUND BALANCES -
SEPTEMBER 30, 1994
ANIMAL TOTALS
BOND ISSUES CONTROL 1994 1993
$ - S - S - $ 49,200
65,655 - 65,655 25,763
167,592 167,592
$ 233,247 $ -0- $ 233,247 $ 74,963
$ 174,083 $ - $ 174,083 $ 215,559
13,076 13,076 36,124
$ 174,083 $ 13,076 $ 187,159 $ 251,683
$ 59,164 $(13,076) $ 46,088 $ (176,720)
$ - $ - $ - $ 620,000
- - 200,000
$ -0- $ -0- $ -0- S 820,000
$ 59,164 $(13,076) $ 46,008 $ 643,280
1,041,142 13,076 1,054,218 410,938
$1,100.306 $ -0- $1,100,306 $1.054,218
(See Accompanying Notes to Financial Statements)
55
(This Page Intentionally Left Blank)
56
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PROPRIETARY FUND TYPE
ENTERPRISE FUNDS
' Enterprise Funds are established to account for operations that are financed and operated
in a manner similar to private business enterprises - where the intent of the governing
body is that costs (expenses, including depreciation) of providing goods or services to
' the general public on a continuing basis be financed or recovered primarily through user
charges. The City operates the Water and Sewer System and the Schertz Area Facility for
Emergency Services (SAFES) on this basis.
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1 57
CITY OF SCHERTZ, TEXAS
ENTERPRISE FUND
COMBINING BALANCE SHEET
SEPTEMBER 30, 1994
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1993)
ASSETS
CURRENT ASSETS
Cash and Cash
Equivalents
Investments
Accounts Receivable
(Net)
Due from Other Funds
Inventory of Supplies,
at Cost
Total Current
Assets
RESTRICTED ASSETS
Cash and Cash
Equivalents
Investments
Total Restxicted
Assets
FIXED ASSETS
Land and Improvements
Buildings
Improvements Other
than Buildings
Machinery and
Equipment
Construction in
Progress
Totals
Less: Accumulated
Depreciation
Total Fixed Assets
WATER AND
SEWER
SYSTEM SAFES
I
C
TOTALS
1994 1993 '
$ 15,300
$ 18,908
$ 34,208
$ 62,085
68,813
184,549
253,362
66,990
276,988
59,684
336,672
280,494
15,690
-
15,690
42,239
87,188
31,660
118,848
82,069
$ 463,979
$294,801
$ 758,780
$ 533,877
$ 19,851
$ -
$ 19,851
$ 29,021
,
1,211,302
Organizational Costs
1,211,302
712,691
$ 1,900
$1,231,153
$ -0-
$ 1,231,153
$ 741,712
Amortization
(1,137)
-
$ 160,521
195,724
$ -
26,656
$ 160,521
222,380
$ 160,521
222,380
,
8,980,331
-
8,980,331
8,502,236
TOTAL ASSETS
501,946
357,910
859,856
817,799
,
88,602
88,602
14,563
$9,927,124
$384,566
$10,311,690
$9,717,499
4,535,176
233,231
4,768,407
4,419,083
t
$5,391,948
$151,335
$ 5,543,283
$5,298,416
u
OTHER ASSETS
Organizational Costs
$ 1,900
$ -
$ 1,900
$ 1,900
'
Accumulated
Amortization
(1,137)
-
(1,137)
(1,089)
Total Other Assets
5 763
$ -0-
$ 763
$ 811
'
TOTAL ASSETS
$7,087,843
446 136
J_7,533,..979
$6,574,816
1
(See Accompanying Notes to
Financial Statements)
58
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LIABILITIES AND EQUITY
CURRENT LIABILITIES
Vouchers Payable
Note Payable
Due to Other Funds
Accrued Vacation and
Sick Leave
Total Current
Liabilities
CURRENT LIABILITIES
PAYABLE FROM RESTRICTED
ASSETS
Customer Deposits
Revenue Bonds
Certificates of
Obligation
Public Facility Loan
Accrued Interest
Total Current
Liabilities
Payable from
Restricted Assets
NONCURRENT LIABILITIES
Revenue Bonds Payable
(Less Current
Maturities)
Certificate of
Obligation Payable
(Less Current
Maturities)
Public Facility Loan
Note Payable (Less
Current Maturities)
Total Noncurrent
Liabilities
Total Liabilities
EQUITY
Contributed Capital
Retained Earnings
Reserved for Revenue
Bond Retirement
Reserved for Equipment
Replacement and Capital
Improvements
Unreserved
Total Equity
TOTAL LIABILITIES AND EQUITY
WATER AND
SEWER TOTALS
SYSTEM SAFES 1994 1993
$ 87,156
$ 3,323
$ 90,479 $
51,397
20,619
30,000
50,619
19,151
109,736
1,733
111,469
6,141
16.598
6.720
23.318
22.724
$ 234.109 $ 41.776 $ 275.885 $ 99.413
$ 119,539 $ - $ 119,539 $ 128,170
100,000 - 100,000 95,000
85,000 - 85,000 30,000
4,000 - 4,000 4,000
48,097 - 48,097 47,575
$ 356,636 $ -0- $ 356,636 $ 304,745
$1,455,000 $ - $1,455,000 $1,555,000
980,000 - 980,000 1,115,000
84,000 - 84,000 88,000
196,017 196,017 216,636
$2,715,017 $ -0- $2,715,017 $2,974,636
$3,305,762 $ 41,776 $3,347,538 $3,378,794
$3,540,055 $226,769 $3,766,824 $3,558,491
302,368 - (j,3:68)
100,667 - 100,667
(241,009) 177,591 (63,418)
$3,782,081 $404,360 $4,186,441
$7,087,843 $446,136 $7,533,979
1 59
341,141
123,447
(827,057)
$3,196,022
$6,574,816
CITY OF SCHERTZ, TEXAS
ENTERPRISE FUND '
COMBINING STATEMENT OF REVENUES EXPENSES AND CHANGES IN RETAINED EARNINGS
YEAR ENDED SEPTEMBER 30, 1994
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1993) '
WATER AND TOTALS
SEWER SYSTEM SAFES 1994 1993 '
OPERATING REVENUES
Fees Charged to Users
OPERATING EXPENSES BEFORE
DEPRECIATION
Personal Services
Sewage Treatment
General and Administrative
Contractual Services
Supplies /Maintenance
Bad Debts
Total Operating Expenses
before Depreciation
Operating Income before
Depreciation
Depreciation
Operating Income (Loss)
NONOPERATING REVENUES (EXPENSES)
Interest Income
Interest Expenses
Amortization
Reimbursements
Other
Total Nonoperating Revenues
(Expenses)
Net Income (Loss) before
Operating Transfers
OPERATING TRANSFERS (OUT)
Net Income (Loss)
RETAINED EARNINGS (DEFICIT)
AT BEGINNING OF YEAR
Prior Period Adjustment
RETAINED EARNINGS AT BEGINNING
OF YEAR - AS RESTATED
RETAINED EARNINGS (DEFICIT)
AT END OF YEAR
$1,997,654 $495,282 $2,492,936 $2,029,454
$ 292,944
$191,805 $
484,749
$ 492,576
464,118
-
464,118
414,719
222,385
5,800
228,185
204,133
174,410
35,360
209,770
254,201
52,813
63,331
116,144
328,590
-
71.660
71.660
53.375
$1,206,670 $367,956 $1,574,626 $1,747,594
$ 790,984 $127,326 $ 918,310 $ 281,860
372,164
16,743
388,907
411,968
$ 418,820
$110,583
$ 529,403
$ (130,108)
$ 45,221
$ 4,754
$ 49,975
$ 33,186
(209,217)
-
(209,217)
(298,382)
(48)
-
(48)
(48)
31,293
-
31,293
48,568
1,156
42
11198
109
$ (131,595)
$ 4,796
$ (126,799)
$ (216,567)
$ 287,225
$115,379
$ 402,604
$ (346,675)
(67,400)
-
(67,400)
(227,341)
$ 219,825
$115,379
$ 335,204
$ (574,016)
$ (408,746)
$ 46,277
$ (362,469)
$ 211,547
430,947
15,935
446,882
-
$ 22,201
$ 62,212
$ 84,413
$ 211,547
S 242,026
177,591
2 419,617
$ (362,469)
(See Accompanying Notes to Financial Statements)
60
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CITY OF SCHERTZ, TEXAS
ENTERPRISE FUND
COMBINING STATEMENT OF CASH FLOWS - ALL PROPRIETARY FUND TYPES
YEAR ENDED SEPTEMBER 30, 1994
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1993)
CASH FLOWS FROM OPERATING
ACTIVITIES
Cash Received from Customers
Cash Payments to Suppliers
for Goods and Services
Cash Payments to Employees
for Services
Other
Net Cash Provided by
Operating Activities
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Operating Transfers out
to Other Funds
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Acquisition and Construction
of Capital Assets
Principal Payments on
Long -Term Debt
Proceeds from Issuance of
Long -Term Debt
Interest Paid on Long -Term
Debt
Capital Contributed for
Capital Assets
Net Cash Used in Capital
and Related Financing
Activities
CASH FLOWS FROM INVESTING
ACTIVITIES
Interest on Investments
Net Increase (Decrease)
in Cash
CASH AND CASH EQUIVALENTS -
OCTOBER 1, 1993
CASH AND CASH EQUIVALENTS -
SEPTEMBER 30, 1994
Comprised of
Current Assets
Restricted Assets
WATER AND
$ 92,287
TOTALS
SEWER SYSTEM
SAFES
1994
1993
$2,132,673
$419,108
$2,551,781
$1,952,105
(988,429)
(108,160)
(1,096,589)
(1,398,632)
(294,695)
(189,460)
(484,155)
(492,441)
32,449
516315,266
32,449
51,368
$ 881,998
$121,488
$1,003,486
$ 112,400
$ (67,400) $ - $ (67,400) $ (227,341)
$ (568,114) $(65,661) $ (633,775) $ (329,622)
(198,151) - (198,151) (169,523)
- 30,000 30,000 473,000
(208,695) - (208,695) (298,382)
206,518 11815 208,333
$ (768,442) $(33,846) $ (802,288) $ (324,527)
$ 45,221 $ 4,645 $ 49,866 $ 33,186
$ 91,377
$ 92,287
$ 183,664
$ (406,282)
1,223,889
111,170
1,335,059
1,277,069
$1,315,266
$203,457
$1,518,723
$ 870,787
$ 84,113
$203,457
$ 287,570
$ 129,075
1,231,153
-
1,231,153
741,712
516315,266
jjjj,6457
$1,518,723
$ 870,787
(Continued)
(See Accompanying Notes to Financial Statements)
61
CITY OF SCHERTZ, TEXAS
ENTERPRISE FUND
COMBINING STATEMENT OF CASH FLOWS - ALL PROPRIETARY FUND TYPES
YEAR ENDED SEPTEMBER 30, 1994
RECONCILIATION OF OPERATING
INCOME (LOSS) TO NET CASH
PROVIDED BY OPERATING
INCOME
Operating Income (Loss)
Adjustments to Reconcile
Operating Income (Loss)
to Net Cash Provided by
Operating Activities
Depreciation /Amortization
Provision for Uncollectible
Accounts
Other
Change in Assets and Liabilities
Decrease (Increase) in
Accounts Receivable
Increase in Inventory
Increase (Decrease) in
Vouchers Payable
Increase (Decrease) in
Due to Other Funds
Decrease (Increase) in
Due from Other Funds
Increase (Decrease) in
Accrued Vacation
Increase (Decrease) in Accrued
Interest Payable
Increase (Decrease) in
Customers Deposits
NET CASH PROVIDED BY
OPERATING ACTIVITIES
WATER AND TOTALS
SEWER SYSTEM SAFES 1994 1993
$ 418,820 $110,583 $ 529,403 $ (130,108)
372,164
16,743
388,907
412,016
-
71,660
71,660
53,375
-
-
-
51,368
(37,094)
(74,658)
(111,752)
(87,165)
(29,904)
(6,875)
(36,779)
(10,547)
35,752
3,206
38,958
(7,654)
105,571
(1,516)
104,055
(209,585)
26,549
-
26,549
26,823
(1,751)
2,345
594
133
522
-
522
(2,626)
(8,631)
-
(8,631)
16,370
$ 881,998 $121,488 $1,003,486 $ 112,400
Supplemental Disclosures
Non -Cash Capital and Related
Financing Transactions
Equipment from Other Funds $
Acquisition and Construction
of Capital Assets
Cost of Facility
Note Payable Issued
Federal Financial Assistance
Contributed Capital
568,114
(69,864)
(136,654)
62
- $ - $ 34,363
65,661 633,775 -
- - 273,000
(30,000) (30,000) (273,000)
- (69,864) -
(1,815) (208,333) -
I
GENERAL FIXED ASSETS
' This account group is established to account for the fixed assets owned by the City
exclusive of those relating to Proprietary Fund operations. Expenditure transactions
to acquire general fixed assets occur in the General Fund.
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64
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CITY OF SCHERTZ, TEXAS
SCHEDULES OF GENERAL FIXED ASSETS - BY SOURCE
GENERAL FIXED ASSETS
Land
Buildings
Improvements Other than Buildings
Vehicles
Equipment
Construction in Progress
TOTAL
INVESTMENT IN GENERAL FIXED ASSETS BY SOURCE
General Fund
Capital Projects
General Obligation Bonds
Certificates of Obligation
Time Warrants
Contractual Obligations
Grant
Contributed
Special Revenue - Development Foundation
TOTAL
(See Accompanying Notes to Financial Statements)
65
SEPTEMBER 30,
1994 1993
$ 403,589 $ 387,850
1,114,290 1,114,290
7,197,121 6,822,748
694,477 698,940
979,118 879,111
$10,388,595 $9,902,939
$ 1,978,599 $1,914,517
678,523
491,364
182,686
182,686
317,005
317,005
113,614
113,614
36,124
36,124
7,066,305
6,847,629
15.739
-
$10,388,595 $9,902,939
CITY OF SCHERTZ, TEXAS
SCHEDULES OF GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY
YEAR ENDED SEPTEMBER 30, 1994
(See Accompanying Notes to Financial Statements)
66
BALANCE
TRANSFERS
BALANCE
OCTOBER 1,
BETWEEN
SEPTEMBER 30,
1993
ADDITIONS
DEPARTMENTS
DEDUCTIONS
1994
General Government
$ 856,420
$ 52,776
$ 1,699
$ 160
$ 910,735
Public Safety
Police
337,535
62,872
(14,888)
44,810
340,709
Fire
598,414
33,173
-
8,200
623,387
inspection
21,302
-
13,866
11,113
24,055
Street and Park
Street
6,429,234
351,311
-
70
6,780,475
Pool
540,806
967
-
-
541,773
Parks
657,330
17,092
-
3,000
671,422
Health
Animal Control
204,336
20,874
(677)
1,795
222,738
Library
257,562
-
-
-
257,562
Development
Foundation
21,713
5,974
15,739
TOTALS
$9,924,652
$539,065
$ -0-
75 122
510,388,595
(See Accompanying Notes to Financial Statements)
66
COMPONENTS OF GENERAL FIXED ASSETS
IMPROVEMENTS
OTHER THAN
LAND BUILDINGS BUILDINGS VEHICLES EQUIPMENT
$ 63,769 $ 623,236 $ 48,310 $ 6,676 $168,744
-
-
-
190,569
150,140
12,000
65,000
5,670
309,366
231,351
-
-
139
18,031
5,885
83,227
400
6,309,646
145,109
242,093
-
-
- 530,309
-
11,464
182,662
195,159
202,906
17,998
72,697
23,161
106,071
- 65,274
6,728
21,504
23,031
124,424
34,867
-
75,240
15,739
k403,589
$1,1141290
$7,197,121
$694,477
$979,118
67
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STATISTICAL INFORMATION
69
CITY OF SCHERTZ, TEXAS
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION TABLE 1
FISCAL
GENERAL
PUBLIC
STREETS
TOTAL (1)
YEAR
GOVERNMENT
SAFETY
AND PARKS
HEALTH
OTHER
EXPENDITURE:
1985
$566,490
$353,023
$173,251
$45,076
$ 99,770
$1,237,610
1986
620,680
416,578
202,929
43,929
182,739
1,466,855
1987
715,242
488,536
318,719
55,657
188,193
1,766,347
1988
807,754
523,000
283,323
47,507
216,662
1,878,246
1989
934,517
582,673
289,539
50,243
189,199
2,046,171
1990
654,009
796,823
327,797
56,150
339,241
2,174,020
1991
659,815
836,031
342,974
65,816
436,419
2,341,055
1992
689,082
843,582
352,093
66,646
393,138
2,344,541
1993
741,305
924,222
373,213
75,441
479,836
2,594,017
1994
744,801
978,121
305,633
80,494
647,556
2,756,605.
(1) Includes General, Special Revenue
and Debt Service Funds
(See Accompanying Notes to Financial Statements)
70
CITY OF SCHERTZ, TEXAS
GENERAL GOVERNMENT REVENUES BY SOURCE TABLE 2
*Includes General, Special Revenue
and Debt Service Funds
* *Reclassification Among These Categories
Performed in 1991
(See Accompanying Notes to Financial Statements)
71
LICENSES
CHARGES
FINES
FISCAL
AND
FOR
AND
YEAR
TAXES
PERMITS
SERVICES
FORFEITURES
OTHER
TOTAL*
1985
$ 926,883
$ 73,521
$ 30,440
$ 92,437
$200,701
$1,323,982
1986
1,068,305
117,685
30,717
121,054
173,894
1,511,655
1987
1,152,108
76,821
32,459
159,837
203,837
1,625,062
1988
1,308,600
54,627
32,391
139,008
272,230
1,806,856
1989
1,360,611
53,045
31,235
145,830
305,348
1,896,069
1990
1,540,027
42,194
72,781
217,311
305,977
2,178,290
1991
1,746,053
43,826
276,508
201,512 **
156,737
2,424,636 **
1992
1,811,941
53,316
326,184
221,856
113,261
2,526,558
1993
1,895,333
173,310
327,434
196,200
112,248
2,704,525
1994
2,109,202
145,229
343,731
195,964
195,320
2,989,446
*Includes General, Special Revenue
and Debt Service Funds
* *Reclassification Among These Categories
Performed in 1991
(See Accompanying Notes to Financial Statements)
71
CITY OF SCHERTZ, TEXAS
PROPERTY TAX LEVIES AND COLLECTIONS
(See Accompanying Notes to Financial Statements)
72
% OF
TOTAL
CURRENT
CURRENT
TAX
TAX
LEVY
FISCAL
YEAR
LEVY
COLLECTIONS
COLLECTED
September
30,
1985
$ 486,515
$ 481,502
98.9%
September
30,
1986
545,931
532,537
97.5
September
30,
1987
610,784
592,291
97.0
September
30,
1988
706,369
674,931
95.6
September
30,
1989
748,602
715,970
95.6
September
30,
1990
914,388
864,723
94.6
September
30,
1991
1,005,598
975,352
97.0
September
30,
1992
1,042,914
1,014,564
97.0
September
30,
1993
1,102,209
1,083,800
98.3
September
30,
1994
1,212,063
1,192,569
98.4
(See Accompanying Notes to Financial Statements)
72
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DELINQUENT
COLLECTIONS
$ 2,629
4,193
7,083
18,548
14,943
19,324
37,972
19,995
17,037
14,634
TOTAL TAX
COLLECTION
$ 484,131
536,730
599,374
694,017
730,913
884,047
1,013,324
1,034,559
1,100,837
1,207,203
RATIO OF
TOTAL TAX
COLLECTIONS
TO TOTAL
TAX LEVY
73
99.5 %
98.3
100.3
98.25
97.64
96.7
101.0
99.0
99.9
99.6
TABLE 3
OUTSTANDING
RATES OF
STANDING
DELINQUENT
DELINQUENT
TAXES TO
TAXES
TAX LEVY
$14,165
2.9%
19,523
3.6
29,594
4.8
41,915
5.9
56,270
7.5
86,122
9.4
70,396
7.8
84,843
8.1
85,876
7.8
71,161
5.9
CITY OF SCHERTZ, TEXAS
ASSESSED AND ESTIMATED ACTUAL VALUE OF PROPERTY TABLE 4
(See Accompanying Notes to Financial Statements)
74
FISCAL
ESTIMATED
LEVY
YEAR
ACTUAL
ASSESSMENT
ASSESSED
TAX
TAX
YEAR
ENDED
VALUES
PERCENTAGE
VALUATIONS
RATE
LEVY
1985
09 -30 -85
$122,414,101
100%
$111,586,009
.436
$481,515
1986
09 -30 -86
132,968,582
100
125,018,837
.436
545,931
1987
09 -30 -87
153,457,116
100
147,961,601
.4128
610,784
1988
09 -30 -88
379,674,429
100
285,978,200
.24705
706,369
1989
09 -30 -89
284,253,725
100
290,606,339
.2576
748,602
1990
09 -30 -90
376,676,293
100
287,272,356
.3183
914,388
1991
09 -30 -91
340,903,727
100
272,593,690
.3689
1,005,598
1992
09 -30 -92
269,351,284
100
268,170,123
.3889
1,042,914
1993
09 -30 -93
256,861,608
100
259,038,486
.4255
1,102,209
1994
09 -30 -94
264,286,116
100
258,766,426
.4684
1,212,063
(See Accompanying Notes to Financial Statements)
74
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CITY OF SCHERTZ, TEXAS
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS TABLE 5
All rates shown are per $100 assessed valuation.
Year shown is the fiscal year of collection. Taxes
were levied the previous calendar year.
(See Accompanying Notes to Financial Statements)
75
COUNTY
YEAR **
CITY
SCHOOL
COUNTY
ROAD
100%
100%
100%
100%
ASSESSMENT
ASSESSMENT
ASSESSMENT
ASSESSMENT
RATE*
RATE*
RATE
RATE
1985
$.440
$ .97
$.2457
$.04
1986
.436
1.11
.3450
.0425
1987
.4128
1.14
.3875
.04
1988
.24705
.783
.2852
.0820
1989
.2576
.8882
.1522
.0950
1990
.3183
1.00561
.1418
.0977
1991
.3689
1.20513
.2720
.0850
1992
.3889
1.4777
.3599
.0850
1993
.4255
1.4499
.3036
.0950
1994
.4684
1.3095
.2995
.0867
All rates shown are per $100 assessed valuation.
Year shown is the fiscal year of collection. Taxes
were levied the previous calendar year.
(See Accompanying Notes to Financial Statements)
75
CITY OF SCNERTZ, TEXAS
RATIO OF NET GENERAL OBLIGATION BONDED DEBT
TO ASSESSED VALUE AND NET GENERAL BONDED DEBT PER CAPITA TABLE 6
*Based on Preliminary 1990 Census. This estimate has
been challenged by the City.
* *Includes General Bonded Debt Issued During Current Year
(See Accompanying Notes to Financial Statements)
76
NET
RATIO
GENERAL
OF NET
BONDED
BONDED DEBT
DEBT PER
FISCAL
YEAR
ESTIMATED
ASSESSED
NET GENERAL
TO ASSESSED
CAPITA
September
30,
1985
11,400
$ 11,586,009
$ 345,035
.31%
$30.27
September
30,
1986
12,500
125,213,487
324,351
.26
25.92
September
30,
1987
12,500
147,961,601
757,790
.51
60.62
September
30,
1988
12,580
285,978,200
758,401
.27
60.29
September
30,
1989
12,580
290,606,339
755,115
.26
60.03
September
30,
1990
10,681*
287,272,356
732,510
.25
68.58
September
30,
1991
10,900
272,593,690
715,300
.26
65.62
September
30,
1992
11,500
268,170,123
687,715
.26
59.80
September
30,
1993
12,000
259,038,486
1,190,649 **
.46
99.22
September
30,
1994
12,500
258,766,426
1,132,128
.43
90.57
*Based on Preliminary 1990 Census. This estimate has
been challenged by the City.
* *Includes General Bonded Debt Issued During Current Year
(See Accompanying Notes to Financial Statements)
76
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CITY OF SCHERTZ, TEXAS
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
YEAR ENDED SEPTEMBER 30, 1994
*Alamo Community College District
*Bexar County
*COmal County
*Comal Independent School District
*Guadalupe County
* Schertz- Cibolo- Universal
City Independent School District
*San Antonio River Authority
Total Net Overlapping Debt.
*City of Schertz
TOTAL DIRECT AND OVERLAPPING DEBT
(2.94% OF ASSESSED VALUE -
$713.80 PER CAPITA)
*Source of Data - Texas Municipal Repoxts,
City of Schertz, 1993 (Latest Available)
Compiled and Published by Municipal
Advisory Council of Texas
TABLE 7
(See Accompanying Notes to Financial Statements)
77
$7,534,097
NET DEBT
PERCENT
AMOUNT
AS OF
OVER-
OVER -
AMOUNT
08 -31 -93
LAPPING
LAPPING
$77,713,418
08 -31 -93
.02%
$ 15,543
155,605,436
07 -31 -93
.02
31,121
5,941,449
12 -31 -94
.09
5,347
26,754,568
08 -31 -93
.12
32,105
1,881,027
03 -31 -93
14.75
277,451
8,698,462
08 -31 -93
51.88
4,512,762
57,430,000
01 -01 -94
.02
11,486
$4,885,815
2,648,282
09 -30 -93
100.00
2,648,282
(See Accompanying Notes to Financial Statements)
77
$7,534,097
CITY OF SCHERTZ, TEXAS
LEGAL DEBT MARGIN
YEAR ENDED SEPTEMBER 30, 1994
I
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TABLE 8 '
Texas municipalities are not bound by any direct constitutional or statutory
maximums as to the amount of general obligation bonds which may be issued; however, all
local bonds must be submitted to and approved by the State Attorney General. It is the
established practice of the Attorney General not to approve prospective bond issue if
it will result in the levy of a tax for bonded debt of over $1.00 for cities under
5,000 population or $1.50 for cities over 5,000 population.
(See Accompanying Notes to Financial Statements)
78
CITY OF SCRERTZ, TEXAS
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR
GENERAL OBLIGATION BONDED DEBT TO TOTAL GENERAL EXPENDITURES
LAST TEN FISCAL YEARS
FISCAL YEAR
September 30, 1985
September 30, 1986
September 30, 1987
September 30, 1988
September 30, 1989
September 30, 1990
September 30, 1991
September 30, 1992
September 30, 1993
September 30, 1994
*Includes General, Special Revenue, and Debt Service Funds
(See Accompanying Notes to Financial Statements)
79
TABLE 9
RATIO
OF DEBT
SERVICE TO
GENERAL
3.9%
3.2
2.7
5.2
4.3
4.5
4.0
4.0
3.9
5.6
DEBT
SERVICE
PRINCIPAL
INTEREST
TOTAL
EXPENDITURES*
$21,000
$27,878
$48,878
$1,237,610
21,000
26,233
47,233
1,466,855
22,000
25,169
47,169
1,766,347
24,000
72,900
96,900
1,878,246
39,000
54,758
93,758
2,197,023
45,000
52,049
97,049
2,174,020
45,000
49,067
94,067
2,341,055
46,000
46,084
92,084
2,344,541
57,000
42,830
99,830
2,594,017
58,000
97,493
155,493
2,756,605
*Includes General, Special Revenue, and Debt Service Funds
(See Accompanying Notes to Financial Statements)
79
TABLE 9
RATIO
OF DEBT
SERVICE TO
GENERAL
3.9%
3.2
2.7
5.2
4.3
4.5
4.0
4.0
3.9
5.6
CITY OF SCHERTZ, TEXAS
WATER AND SEWER FUND
REVENUE BOND COVERAGE
(See Accompanying Notes to Financial Statements)
80
TOTAL
OPERATING
OPERATING
EXPENSES
INCOME
OPERATING
BEFORE
BEFORE
FISCAL
ENDED
REVENUE
DEPRECIATION
DEPRECIATI
September
30,
1985
$1,172,755
$ 815,805
$356,950
September
30,
1986
1,309,269
849,677
459,592
September
30,
1987
1,339,061
888,916
450,145
September
30,
1988
1,502,210
1,056,619
445,591
September
30,
1989
1,729,271
1,045,290
683,981
September
30,
1990
1,557,554
1,087,074
470,480
September
30,
1991
1,515,854
1,139,935
375,919
September
30,
1992
1,487,049
1,203,574
283,475
September
30,
1993
1,617,768
1,387,165
230,603
September
30,
1994
1,997,654
1,206,670
790,984
(See Accompanying Notes to Financial Statements)
80
DEBT
SERVICE
OF
REQUIREMENTS
CUSTOMERS
PRINCIPAL
INTEREST
TOTAL
$ 75,000
$224,036
$299,036
83,000
217,379
300,379
105,000
271,454
376,454
113,000
262,543
375,543
128,000
267,943
395,943
138,000
247,580
385,580
83,000
139,423
222,423
80,000
134,473
214,473
90,000
128,672
218,672
95,000
122,106
217,106
81
TABLE 10
NUMBER
OF
CUSTOMERS
COVERAGE
WATER
SEWER
1.19:1
2,877
2,231
1.53:1
3,208
2,333
1.20:1
3,498
2,639
1.19:1
3,692
2,662
1.73:1
3,859
2,906
1.22:1
3,712
3,028
1.69:1
3,751
3,086
1.32:1
3,859
3,177
1.06:1
4,074
3,377
3.64:1
4,231
3,488
CITY OF SCHERTZ, TEXAS
WATERWORKS AND SEWER SYSTEM FUND
REVENUE BOND REQUIREMENTS AND RESTRICTED FUNDS
YEAR ENDED SEPTEMBER 30, 1994
SERIES 1968
Principal Payment, Due September 1, 1995
Interest Payment, Due March 1, 1995
UTILITY SYSTEM REVENUE BONDS, SERIES 1973:
Principal Payment, Due September 1, 1995
Interest Payment, Due March 1, 1995
UTILITY SYSTEM REVENUE BONDS. SERIES 1975:
Principal Payment, Due September 1, 1995
Interest Payment, Due March 1, 1995
UTILITY SYSTEM REVENUE BONDS, SERIES 1981:
Principal Payment, Due September 1, 1995
Interest Payment, Due March 1, 1995
UTILITY SYSTEM REVENUE BONDS. SERIES 1987:
Principal Payment, Due September 1, 1995
Interest Payment, Due March 1, 1995
Total Requirements
CASH - RESTRICTED
UNDER REQUIREMENTS
1
TABLE 11 '
ANNUAL REQUIREMENT
PRINCIPAL/ AT
SEMI - ANNUAL SEPTEMBER 30,
INTEREST BASIS 1994
$40,000 1 /12th
1,150 1 /6th
- 1 /12th
4,884 1 /6th
$ 3,333
192
814
10,000
1 /12th
833
7,940
1 /6th
1,323
35,000
1 /12th
2,917
10,790
1 /6th
1,798
15,000
1 /12th
1,250
32,750
1 /6th
5,458
$ 17,918
6,915
$(11,003)
RESERVE FUND REQUIREMENT
The City is required to make monthly deposits sufficient to meet the total reserve
fund requirement within sixty (60) months of the closing date for the 1987 issue. City
monthly deposits through September 30, 1994 met these requirements.
1 '.2 Time Average Annual Principal and Interest
Requirement (Annual $183,912)
Cash and Investments
FUNDS AVAILABLE OVER (UNDER) REQUIREMENT
(See Accompanying Notes to Financial Statements)
82
$275,868
355,950
s5 0,082
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CITY OF SCHERTZ, TEXAS
Source:
(1) 1990 Bureau of the Census
Department of Planning, University of Texas
(2) Department of Economics, University of Texas
United States Department of Labor
(Information not Available for Odd Years)
(3) Texas Employment Commission
(4) Schertz - Cibolo- Universal City Independent School District
(See Accompanying Notes to Financial Statements)
83
LAST TEN
FISCAL YEARS
TABLE 12
LEVEL IN
PER.
YEARS OF
CAPITA
MEDIAN
FORMAL
SCHOOL
UNEMPLOYMENT
FISCAL
INCOME
AGE
EDUCATION
ENROLLMENT
RATE IN %
YEAR
POPULATION
(2)
(3)
(3)
(4)
(3)
1985
11,400
Est.
$ -
40
12
2,064
5.4%
1986
12,500
Est.
7,400
41
12
2,154
6.3
1987
12,500
Est.
-
41
12
2,306
5.7
1988
12,580
Est.
8,300
41
12
2,334
6.2
1989
12,580
Est.
8,300
41
12
3,980
7.3
1990
10,597
Act.
9,600
42
12
4,175
4.6
1991
10,900
Est.
13,436
35
14
4,309
6.3
1992
12yOOO
Est.
13,500
33
14
4,619
4.0
1993
12,000
Est.
13,500
32
14
4,700
3.9
1994
12,500
Est.
13,600
32
14
4,576
3.9
Source:
(1) 1990 Bureau of the Census
Department of Planning, University of Texas
(2) Department of Economics, University of Texas
United States Department of Labor
(Information not Available for Odd Years)
(3) Texas Employment Commission
(4) Schertz - Cibolo- Universal City Independent School District
(See Accompanying Notes to Financial Statements)
83
CITY OF SCHERTZ, TEXAS
PROPERTY VALUE, CONSTRUCTION, AND
BANK DEPOSITS
LAST TEN FISCAL YEARS
COMMERCIAL
CONSTRUCTION
NUMBER VALUE
CONSTRUCTION
NUMBER
OF
UNITS VALUE
1985
64
$2,779,063
132
$ 7,918,922
1986
15
1,600,154
229
14,590,154
1987
16
1,056,074
132
7,834,243
1988
17
325,577
78
5,726,906
1989
2
478,000
62
5,051,217
1990
22
1,988,605
37
3,408,220
1991
11
938,564
33
2,377,438
1992
11
664,016
50
4,140,140
1993
9
235,825
245
22,537,308
1994
21
4,868,688
92
8,323,846
Sources: City Building Inspection Records
City Tax Records
S. W. T. Research Center
Schertz State bank
Pacific Southwest
*Estimated Actual Value
(See Accompanying Notes to Financial Statements)
84
TABLE 13
TOTAL
P
R O P E R T Y V A L U E•
BANK DEPOSITS
COMMERCIAL
RESIDENTIAL
NONTAXABLE
$34,089,000
$15,006,912
$ 91,817,653
$10,828,092
40,357,000
15,205,126
95,683,981
10,828,092
56,924,876
15,348,150
102,787,953
10,828,092
64,197,486
53,591,069
148,425,176
10,828,092
62,102,393
64,778,035
202,135,618
4,556,627
81,995,393
50,527,552
205,228,770
498,074
62,714,417
32,198,188
177,354,060
430,425
61,074,204
30,327,586
178,353,991
5,086,170
63,487,855
31,626,493
182,817,263
5,360,890
65,363,928
33,775,788
216,454,372
5,374,948
85
CITY OF SCHERTZ, TEXAS
PRINCIPAL TAXPAYERS
YEAR ENDED SEPTEMBER 30, 1994
TABLE 14
86
_
1993
PERCENTAGE OF
ASSESSED
TOTAL ASSESSED
PRINCIPAL TAXPAYERS
TYPE OF BUSINESS
VALUATION
VALUATION
1.
Eric W. White
Real Estate
$ 6,461,781
22.00%
2.
PSPI Corp.
Machine Fabricating
4,149,170
14.12
3.
Sycamore Creek Partners
Apartments
3,100,000
10.55
4.
Negley Paint Co.
industrial
3,028,512
10.31
5.
Garden Ridge Pottery
Mercantile
2,508,724
8.54
6.
Riedel's Family Partners
Furniture Store/
Apartments
2,384,176
8.12
7.
Guadalupe Valley Electric
Utility
2,375,962
8.09
8.
Tri -Con Business and
Industrial Park
Commercial
2,205,578
7.51
9.
CHH Parks
Commercial
1,792,239
6.10
10.
Southwestern Bell
Telephone Utility
1,371,240
4.66
TOTAL (11.45% OF 1993
ASSESSED VALUATION
$29.377,382
100.00%
86
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CITY OF SCHERTZ, TEXAS
MISCELLANEOUS STATISTICS
YEAR ENDED SEPTEMBER 30, 1994 TABLE 15
Date of Incorporation: December, 1958
Date First Charter Adopted: April, 1974
Date Present Charter Adopted: Amended March, 1989
Form of Government: Council- Manager
YEAR SOUARE MILES
1994
24.15
1993
24.15
1992
24.15
1991
23.75
1989
22.42
1988
22.42
1987
22.38
1986
21.51
1985
13.14
1984
12.82
1983
10.53
Miles of Highways, Streets and
Alleys
Streets and Highways, Paved
G`
90.20 Miles
Streets, Unpaved
6.78 Miles
Alleys
/
3.44 Miles
Sidewalks
/
11.60 Miles
Miles of Sewer:
Storm
1.8 Miles
Sanitary
37.0 Miles
Building Permits:
VALUE OF
-SEAR -
1994
2,771
$18,917,416
1993
2,167
25,705,848
1992
873
6,702,823
1991
545
7,667,699
1990
392
6,652,769
1989
407
6,762,584
1988
368
7,752,335
1987
430
9,725,569
1986
270
16,349,884
1985
378
10,697,985
1984
367
14,218,408
1983
400
5,411,680
(Continued)
(See Accompanying Notes to Financial Statements)
87
CITY OF SCHERT2, TEXAS
MISCELLANEOUS STATISTICS
YEAR ENDED SEPTEMBER 30, 1994 TABLE 15
Fire Protection:
Number of Stations
1
Number of Employees (Full and Part -Time)
17
Number of Volunteers
30
Recreation:
Parks:
7
Playgrounds
64
Other Recreational Facilities:
Baseball Fields
3
Softball Fields
2
Large Pavilion
10,000 Square Feet Covered
Small Pavilion
600 Square Feet Covered
Picnic Tables:
Uncovered
50
Restrooms:
Male
6
Female
6
Concessions Stands
1
Community Center
1
City Employees:
September 30, 1994
124
Elections:
Number of Registered Voters
6,767
Number of Votes in:
Last Municipal Election
702
Percentage of Registered Voters Voting in:
Last Municipal Election
10.40%
Source: Municipal Election Records
Population:
Census Population Count
1992 (Estimate)
12,000
1990
10,597
1980
7,260
1970
4,061
1960
2,281
1950
1,200
1940
600
(See Accompanying Notes to Financial Statements)
88
SINGLE AUDIT REPORTS
89
(This Page Intentionally Left Blank)
90
d
H
11
1
H
H
11
The Honorable Mayor and
Members of the City Council
City of Schertz, Texas
Independent Auditor's Report
on Schedule of Federal Financial Assistance
We have audited the general purpose financial statements of City of Schertz, Texas,
as of and for the year ended June 30, 1994, and have issued our report thereon dated
February 15, 1995. These general purpose financial statements are the responsibility
of the City of Schertz, Texas, management. our responsibility is to express an opinion
on these general purpose statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and
Government Auditing Standards, issued by the Comptroller General of the United States
and the provisions of Office of Management and Budget (OMB) Circular A -1281 Audits of
State and Local Governments. Those standards and OMB Circular A -128 require that we
plan and perform the audit to obtain reasonable assurance about whether the general
purpose financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the
general purpose financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
Our audit was conducted for the purpose of forming an opinion on the general purpose
financial statements of City of Schertz, Texas, taken as a whole. The accompanying
Schedule of Federal Financial Assistance is presented for purposes of additional
analysis and is not a required part of the general purpose financial statements. The
information in this schedule has been subjected to the auditing procedures applied in
the audit of the general purpose financial statements and, in our opinion, is fairly
presented in all material respects in relation to the general purpose financial
statements taken as a whole.
Certified Public Accountants
San Antonio, Texas
February 15, 1995
R. LARRYTHOMPSON, C.P.A. / PAUL E. WILLIAMS, C.P.A. / JAMES L. BIEDIGER, JR., C.PA. / CTED KASTOR,CPA. / CHARLIE E.YOUNG, JR., C.P.A.
JOHNLEIEC.PA. / H. LEE SCHWARTZMAN, C. P.A. / F.GLENNCRAVEY,C.P.A. / FREDJ.TIMMONS,C.P.A. / JOHN W. GREEN,C.PA.
JAMES T McCARTY, C. RA. (RETIRED) 91
THOMPSON, WILLIAMS, MEDIGER, KASTOR0 YOUNG, L.C.
Thompson,
Williams,
Biediger,
NORTH TOWER
CERTIFIED PUBLICACCOUNTANTS
Kastor
800 SA TEXAS N.W. LOOP SUITE 300
SAN ANTONIO, TEXAS 78216 5611
581
®
MEMBERS AMERICAN INSTITUTE OF
FAX 210 /8912588
FAX PIO
CERTIFIED PUBLIC ACCOUNTANTS
Young,
L. C.
The Honorable Mayor and
Members of the City Council
City of Schertz, Texas
Independent Auditor's Report
on Schedule of Federal Financial Assistance
We have audited the general purpose financial statements of City of Schertz, Texas,
as of and for the year ended June 30, 1994, and have issued our report thereon dated
February 15, 1995. These general purpose financial statements are the responsibility
of the City of Schertz, Texas, management. our responsibility is to express an opinion
on these general purpose statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and
Government Auditing Standards, issued by the Comptroller General of the United States
and the provisions of Office of Management and Budget (OMB) Circular A -1281 Audits of
State and Local Governments. Those standards and OMB Circular A -128 require that we
plan and perform the audit to obtain reasonable assurance about whether the general
purpose financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the
general purpose financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
Our audit was conducted for the purpose of forming an opinion on the general purpose
financial statements of City of Schertz, Texas, taken as a whole. The accompanying
Schedule of Federal Financial Assistance is presented for purposes of additional
analysis and is not a required part of the general purpose financial statements. The
information in this schedule has been subjected to the auditing procedures applied in
the audit of the general purpose financial statements and, in our opinion, is fairly
presented in all material respects in relation to the general purpose financial
statements taken as a whole.
Certified Public Accountants
San Antonio, Texas
February 15, 1995
R. LARRYTHOMPSON, C.P.A. / PAUL E. WILLIAMS, C.P.A. / JAMES L. BIEDIGER, JR., C.PA. / CTED KASTOR,CPA. / CHARLIE E.YOUNG, JR., C.P.A.
JOHNLEIEC.PA. / H. LEE SCHWARTZMAN, C. P.A. / F.GLENNCRAVEY,C.P.A. / FREDJ.TIMMONS,C.P.A. / JOHN W. GREEN,C.PA.
JAMES T McCARTY, C. RA. (RETIRED) 91
THOMPSON, WILLIAMS, MEDIGER, KASTOR0 YOUNG, L.C.
CITY OF SCHERTZ. TEXAS
SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
YEAR ENDED SEPTEMBER 30, 1994
FEDERAL /GRANTOR/
PASS- THROUGH GRANTOR/
PROGRAM TITLE
Department of Housina and Urban Development
Texas Department of Housing and Community
Affairs Community Development Block Grant
Subrecipient of Bexar County, Texas
Project Number B- 93 -UC -48 -0500
RECONCILIATION OF GRANT REVENUES BY FUNDS
Water and Sewer System - Contributed Capital
92
FEDERAL PASS - THROUGH
CFDA GRANTORS PROGRAM
NUMBER NUMBER AMOUNT
14.228
$100,000
1
1
1
t
UNEXPENDED
FUNDS AT
OCTOBER 1, GRANT GRANT
1993 REVENUES EXPENDITURES
$ -0- $69,864 $69,864
$69,864
UNEXPENDED
FUNDS AT
SEPTEMBER 30,
1994
$ -0-
CITY OF SCHERTZ, TEXAS
NOTES TO SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
YEAR ENDED SEPTEMBER 30, 1994
1. GENERAL
The accompanying Schedule of Federal Financial Assistance presents the activity
of all federal financial assistance programs of the City of Schertz, Texas. The
City of Schertz, Texas, reporting entity is defined in Note 1 to the City's
general purpose financial statements. All federal financial assistance passed
through other government agencies are included on the schedule.
2. BASIS OF ACCOUNTING
The accompanying Schedule of Federal Financial Assistance is presented using the
modified accrual basis of accounting, which is described in Note 1 to the City's
general purpose financial statements.
u
11
The Honorable Mayor and
Members of the City Council
City of Schertz, Texas
Independent Auditor's Report on Internal Control Structure
Based on an Audit of General Purpose Financial Statements
Performed in Accordance with Government Auditing Standards
We have audited the general purpose financial statements of City of Schertz,
Texas, as of and for the year ended September 30, 1994, and have issued our report
thereon dated February 15, 1995.
We conducted our audit in accordance with generally accepted auditing standards
and Government Auditing Standards, issued by the Comptroller General of the United
States and the provisions of Office of Management and Budget (OMB) Circular A -128,
Audits of State and Local Governments. Those standards and OMB Circular A -128 require
that we plan and perform the audit to obtain reasonable assurance about whether the
general purpose financial statements are free of material misstatement.
In planning and performing our audit of the general purpose financial statements
of City of Schertz, Texas, for the year ended September 30, 1994, we considered this
internal control structure in order to determine our auditing procedures for the
purpose of expressing our opinion on the general purpose financial statements and not
to provide assurance of the internal control structure.
The management of City of Schertz, Texas, is responsible for establishing and
maintaining an internal control structure. In fulfilling this responsibility,
estimates and judgments by management are required to asses the expected benefits and
related costs of internal control structure policies and procedures. The objectives
of an internal control structure are to provide management with reasonable, but not
absolute, assurance that assets are safeguarded against loss from unauthorized use or
disposition, and that transactions are executed in accordance with management's
authorization and recorded properly to permit the preparation of financial statements
in accordance with generally accepted accounting principles. Because of inherent
limitations in any internal control structure, errors or irregularities may
nevertheless occur and not be detected. Also, projection of any evaluation of the
structure to future periods is subject to the risk that procedures may become
inadequate because of changes in conditions or that the effectiveness of the design and
operation of policies and procedures may deteriorate.
R. LA RRY THOMPSON, C. P.A. / PAUL E. WILLIAMS, C.P. A. / JAMES L. BIEDIGER, JR., C.P. A. / C. TED KASTOR, C. P. A. / CHARLIE E. YOUNG, JR., C. P. A.
JOHN LEIS C PA. / H. LEE SCHWARTZMAN. C. P. k / E GLENN CRAVEY, CPA. / FRED J. TIMMONS, C. PA. / JOHN W GREEN, C. P. A.
JAMES T McCARTY, C. PA. (RETIRED) 95
TI- IOMPSON. WILLIAMS. BIEDIGFR, KASTORWYOUNG, L.C.
Thompson,
Williams,
Biediger,
NORTH TOWER
CERTIFIED PUBLIC ACCOUNTANTS
Kastor
800 N.W. LOOP 410, SUITE 300
SAN ANTONIO, TEXAS 782185611
®
MEMBERS AMERICAN INSTITUTE OF
FAX 210/3412588
FAX210/54
Young CERTIFIED PUBLIC ACCOUNTANTS
L. C.
The Honorable Mayor and
Members of the City Council
City of Schertz, Texas
Independent Auditor's Report on Internal Control Structure
Based on an Audit of General Purpose Financial Statements
Performed in Accordance with Government Auditing Standards
We have audited the general purpose financial statements of City of Schertz,
Texas, as of and for the year ended September 30, 1994, and have issued our report
thereon dated February 15, 1995.
We conducted our audit in accordance with generally accepted auditing standards
and Government Auditing Standards, issued by the Comptroller General of the United
States and the provisions of Office of Management and Budget (OMB) Circular A -128,
Audits of State and Local Governments. Those standards and OMB Circular A -128 require
that we plan and perform the audit to obtain reasonable assurance about whether the
general purpose financial statements are free of material misstatement.
In planning and performing our audit of the general purpose financial statements
of City of Schertz, Texas, for the year ended September 30, 1994, we considered this
internal control structure in order to determine our auditing procedures for the
purpose of expressing our opinion on the general purpose financial statements and not
to provide assurance of the internal control structure.
The management of City of Schertz, Texas, is responsible for establishing and
maintaining an internal control structure. In fulfilling this responsibility,
estimates and judgments by management are required to asses the expected benefits and
related costs of internal control structure policies and procedures. The objectives
of an internal control structure are to provide management with reasonable, but not
absolute, assurance that assets are safeguarded against loss from unauthorized use or
disposition, and that transactions are executed in accordance with management's
authorization and recorded properly to permit the preparation of financial statements
in accordance with generally accepted accounting principles. Because of inherent
limitations in any internal control structure, errors or irregularities may
nevertheless occur and not be detected. Also, projection of any evaluation of the
structure to future periods is subject to the risk that procedures may become
inadequate because of changes in conditions or that the effectiveness of the design and
operation of policies and procedures may deteriorate.
R. LA RRY THOMPSON, C. P.A. / PAUL E. WILLIAMS, C.P. A. / JAMES L. BIEDIGER, JR., C.P. A. / C. TED KASTOR, C. P. A. / CHARLIE E. YOUNG, JR., C. P. A.
JOHN LEIS C PA. / H. LEE SCHWARTZMAN. C. P. k / E GLENN CRAVEY, CPA. / FRED J. TIMMONS, C. PA. / JOHN W GREEN, C. P. A.
JAMES T McCARTY, C. PA. (RETIRED) 95
TI- IOMPSON. WILLIAMS. BIEDIGFR, KASTORWYOUNG, L.C.
Independent Auditors Report on Internal Control Structure
Based on an Audit of General Purpose Financial Statements
Performed in Accordance with Government Audi.ti.n<r Standards (Continued)
For the purpose of this report, we have classified the significant internal
control structure policies and procedures in the following categories:
' Cash and Cash Equivalents Payables and Accrued Liabilities
• Receivables Debt
• Inventory Fund Balance
' Property and Equipment
For all of the control categories listed above, we obtained an understanding of the
design of relevant policies and procedures and whether they have been placed in
operation, and we assessed control risk.
Our consideration of the internal control structure would not necessarily disclose
all matters in the internal control structure that might be material weaknesses under
standards established by the American Institute of Certified Public Accountants. A
material weakness is a condition in which the design or operation of one or more of the
' specific internal control structure elements does not reduce to a relatively low level
the risk that errors and irregularities in amounts that would be material in relation
to the general purpose financial statements being audited may occur and not be detected
' within a timely period by employees in the normal course of performing their assigned
functions. We noted no matters involving the internal control structure and its
operations that we consider to be material weaknesses as defined above.
This report is intended for the information of management and the city council.
This restriction is not intended to limit the distribution of this report, which is a
matter of public record.
Certified Public Accountaat�i%
' San Antonio, Texas
February 15, 1995
1 97
d
The Honorable Mayor and
Members of the City Council
City of Schextz, Texas
Independent Auditor's Report on Compliance
Based on an Audit of General Purpose Financial Statements
Performed in Accordance with Government Auditinv Standards
We have audited the general purpose financial statements of City of Schertz, Texas,
as of and for the year ended September 30, 1994, and have issued our report thereon
dated February 15, 1995,
We conducted our audit in accordance with generally accepted auditing standards and
Government Auditing Standards, issued by the Comptroller General of the United States
and the provisions of Office of Management and Budget (OMB) Circular A -128, Audits of
State and local Governments. Those standards and OMB Circular A -128 require that we
plan and perform the audit to obtain reasonable assurance about whether the general
purpose financial statements are free of material misstatement.
Compliance with laws, regulations, contracts, and grants applicable to City of
Schertz, Texas, is the responsibility of the City's management. As part of obtaining
reasonable assurance about whether the financial statements are free of material
misstatement, we performed tests of the City's compliance with certain provisions of
laws, regulations, contracts, and grants. However, the objective of our audit of the
general purpose financial statements was not to provide an opinion on overall
compliance with such provisions. Accordingly, we do not express such an opinion.
The results of our tests indicate that, with respect to the items tested, City of
Schertz, Texas, complied, in all material respects, with the provisions referred to in
the preceding paragraph. With respect to items not tested, nothing came to our
attention that caused us to believe that City of Schertz, Texas, had not complied, in
all material respects, with those provisions.
This report is intended for the information of management and the city council.
This restriction is not intended to limit the distribution of this report, which is a
matter of public record.
Cert�.fied Public Accountants
San Antonio, Texas
February 15, 1995
R. LARRY THOMPSON, C.P.A. / PAUL E. WILLIAMS, C.P.A. / JAMES L. BIEDIGER, JR., C. PA. / C.TEDKASTOR,C.P.A. / CHARLIE E. YOUNG, JR., C.P.A.
JOHN LEIS C PA. / H. LEE SCHWARTZMAN, C. P.A. / F. GLENN CRAVEY, C.P.A. / FRED J. TIMMONS, C.P.A. / JOHN W. GREEN, C.P.A.
JAMES T. McCARTY, C.PA. (RETIRED) 99
THOMPSON, WILLIAMS. BIEDIGER KASTOR d7 YOUNG, L.C.
Thompson,
Williams,
Biediger,
NORTH TOWER
CERTIFIED PUBLIC ACCOUNTANTS
K s or
800 N.W. LOOP 410. SUITE 300
SAN ANTONIO, TEXAS 78216 -5611
210/3442581
MEMBERS AMERICAN INSTITUTE OF
FAX 210/341 -2588
491 CERTIFIED PUBLICACCOUNTANTS
The Honorable Mayor and
Members of the City Council
City of Schextz, Texas
Independent Auditor's Report on Compliance
Based on an Audit of General Purpose Financial Statements
Performed in Accordance with Government Auditinv Standards
We have audited the general purpose financial statements of City of Schertz, Texas,
as of and for the year ended September 30, 1994, and have issued our report thereon
dated February 15, 1995,
We conducted our audit in accordance with generally accepted auditing standards and
Government Auditing Standards, issued by the Comptroller General of the United States
and the provisions of Office of Management and Budget (OMB) Circular A -128, Audits of
State and local Governments. Those standards and OMB Circular A -128 require that we
plan and perform the audit to obtain reasonable assurance about whether the general
purpose financial statements are free of material misstatement.
Compliance with laws, regulations, contracts, and grants applicable to City of
Schertz, Texas, is the responsibility of the City's management. As part of obtaining
reasonable assurance about whether the financial statements are free of material
misstatement, we performed tests of the City's compliance with certain provisions of
laws, regulations, contracts, and grants. However, the objective of our audit of the
general purpose financial statements was not to provide an opinion on overall
compliance with such provisions. Accordingly, we do not express such an opinion.
The results of our tests indicate that, with respect to the items tested, City of
Schertz, Texas, complied, in all material respects, with the provisions referred to in
the preceding paragraph. With respect to items not tested, nothing came to our
attention that caused us to believe that City of Schertz, Texas, had not complied, in
all material respects, with those provisions.
This report is intended for the information of management and the city council.
This restriction is not intended to limit the distribution of this report, which is a
matter of public record.
Cert�.fied Public Accountants
San Antonio, Texas
February 15, 1995
R. LARRY THOMPSON, C.P.A. / PAUL E. WILLIAMS, C.P.A. / JAMES L. BIEDIGER, JR., C. PA. / C.TEDKASTOR,C.P.A. / CHARLIE E. YOUNG, JR., C.P.A.
JOHN LEIS C PA. / H. LEE SCHWARTZMAN, C. P.A. / F. GLENN CRAVEY, C.P.A. / FRED J. TIMMONS, C.P.A. / JOHN W. GREEN, C.P.A.
JAMES T. McCARTY, C.PA. (RETIRED) 99
THOMPSON, WILLIAMS. BIEDIGER KASTOR d7 YOUNG, L.C.
11
11
1
11
The Honorable Mayor and
Members of the City Council
City of Schertz, Texas
Independent Auditor's Report on the City's
Internal control Structure Used in Administering
Federal Financial Assistance Programs
We have audited the general purpose financial statements of City of Schertz, Texas,
as of and for the year ended September 30, 1994, and have issued our report thereon
dated February 15, 1995,
We conducted our audit in accordance with generally accepted auditing standards;
Government Auditing Standards, issued by the Comptroller General of the United States;
and Office of Management and Budget (OMB) Circular A -128, Audits of State and Local
Governments. Those standards and OMB Circular A -128 require that we plan and perform
the audit to obtain reasonable assurance about whether the general purpose financial
statements are free of material misstatement.
In planning and performing our audit for the year ended September 30, 1994, we
considered the City's internal control structure in order to determine our auditing
procedures for the purpose of expressing our opinion on the City's general purpose
financial statements and to report on the internal control structure in accordance with
OMB Circular A -128. This report addresses our consideration of internal control
structure policies and procedures relevant to compliance with requixements applicable
to federal financial assistance programs. We have addressed internal control structure
policies and procedures relevant to our audit of the general purpose financial
statements in a separate report dated February 15, 1995,
The management of City of Schertz, Texas, is responsible for establishing and
maintaining an internal control structure. In fulfilling this responsibility,
estimates and judgments by management are required to assess the expected benefits and
related costs of internal control structure policies and procedures. The objectives
of an internal control structure are to provide management with reasonable, but not
absolute, assurance that assets are safeguarded against loss from unauthorized use or
disposition, that transactions are executed in accordance with management's
authorization and recorded properly to permit the preparation of general purpose
financial statements in accordance with generally accepted accounting principles, and
that federal financial assistance programs are managed in compliance with applicable
laws and regulations. Because of inherent limitations in any internal control
structure, errors, irregularities, or instances of noncompliance may nevertheless occur
R. LARRY THOMPSON, C. P. A. / PAUL E. WILLIAMS, CPA. / JAMES L. BIEDIGER, JR., C. RA. / C. TED KASTOR, C. PA. / CHARLIE E. YOUNG, JR., C. PA.
JOHN LEIF, C. PA. / H. LEE SCHWARTZMAN, C. PA. / F. GLENN CRAVEY, C. PA. / FRED J. TIMMONS, C P. A. / JOHN W GREEN, C. P. A.
JAMES T MCCARTY, C, RA. (RE77RED) 101
THOMPSON, WILLIAMS. BIEDIGER. KASTOR A YOUNG, LC.
Thompson,
Williams,
Biediger,
NORTH TOWER
CERTIFIED PUBLICACCOUNTANTS
Kasstor
800 N.W. LOOP 410, SUITE 300
SAN ANTONIO, TEXAS 78216 56 11
MEMBERS AMERICAN INSTITUTE OF
Y You
CERTIFIED PUBLIC ACCOUNTANTS
FAX 210/341
FAX 210/341 -P888
Y
L.C.
The Honorable Mayor and
Members of the City Council
City of Schertz, Texas
Independent Auditor's Report on the City's
Internal control Structure Used in Administering
Federal Financial Assistance Programs
We have audited the general purpose financial statements of City of Schertz, Texas,
as of and for the year ended September 30, 1994, and have issued our report thereon
dated February 15, 1995,
We conducted our audit in accordance with generally accepted auditing standards;
Government Auditing Standards, issued by the Comptroller General of the United States;
and Office of Management and Budget (OMB) Circular A -128, Audits of State and Local
Governments. Those standards and OMB Circular A -128 require that we plan and perform
the audit to obtain reasonable assurance about whether the general purpose financial
statements are free of material misstatement.
In planning and performing our audit for the year ended September 30, 1994, we
considered the City's internal control structure in order to determine our auditing
procedures for the purpose of expressing our opinion on the City's general purpose
financial statements and to report on the internal control structure in accordance with
OMB Circular A -128. This report addresses our consideration of internal control
structure policies and procedures relevant to compliance with requixements applicable
to federal financial assistance programs. We have addressed internal control structure
policies and procedures relevant to our audit of the general purpose financial
statements in a separate report dated February 15, 1995,
The management of City of Schertz, Texas, is responsible for establishing and
maintaining an internal control structure. In fulfilling this responsibility,
estimates and judgments by management are required to assess the expected benefits and
related costs of internal control structure policies and procedures. The objectives
of an internal control structure are to provide management with reasonable, but not
absolute, assurance that assets are safeguarded against loss from unauthorized use or
disposition, that transactions are executed in accordance with management's
authorization and recorded properly to permit the preparation of general purpose
financial statements in accordance with generally accepted accounting principles, and
that federal financial assistance programs are managed in compliance with applicable
laws and regulations. Because of inherent limitations in any internal control
structure, errors, irregularities, or instances of noncompliance may nevertheless occur
R. LARRY THOMPSON, C. P. A. / PAUL E. WILLIAMS, CPA. / JAMES L. BIEDIGER, JR., C. RA. / C. TED KASTOR, C. PA. / CHARLIE E. YOUNG, JR., C. PA.
JOHN LEIF, C. PA. / H. LEE SCHWARTZMAN, C. PA. / F. GLENN CRAVEY, C. PA. / FRED J. TIMMONS, C P. A. / JOHN W GREEN, C. P. A.
JAMES T MCCARTY, C, RA. (RE77RED) 101
THOMPSON, WILLIAMS. BIEDIGER. KASTOR A YOUNG, LC.
11
Independent Auditor's Report on the City's
Internal Control Structure Used in Administering
Federal Financial Assistance Programs (Continued)
and not be detected. Also, projection of any evaluation of the structure to future
periods is subject to the risk that procedures may become inadequate because of changes
in conditions or that the effectiveness of the design and operation of policies and
procedures may deteriorate.
For the purpose of this report, we have classified the significant internal control
structure policies and procedures used in administering federal financial assistance
programs in the following categories:
Specific Requirements
• Types of Services
• Eligibility
General Requirements
• Political Activity
• Davis -Bacon Act
• Civil Rights
• Cash Management
• Federal Financial Reports
• Allowable Cost /Cost Principles
• Drug -Free Work -Place Act
• Administrative Requirements
For all of the internal control structure categories listed above, we obtained an
understanding of the design of relevant policies and procedures and determined whether
they have been placed in operation, and we assessed control risk.
During the year ended September 30, 1994, City of Schertz, Texas, had no major
federal financial assistance program and expended 100 percent of its total federal
financial assistance under its nonmajor federal financial assistance program:
• Texas Department of Rousing and Community Affairs
We performed tests of controls, as required by OMB Circular A -128, to evaluate the
effectiveness of the design and operation of internal control structure policies and
procedures that we have considered relevant to preventing or detecting material
noncompliance with specific requirements, general requirements, and requirements
governing claims for advances and reimbursements and amounts claimed or used for
matching that are applicable to the aforementioned nonmajor programs. our procedures
were less in scope than would be necessary to render an opinion on these internal
control structure policies and procedures. Accordingly, we do not express such an
opinion.
Our consideration of the internal control structure policies and procedures used
' in administering federal financial assistance would not necessarily disclose all
matters in the internal control structure that might constitute material weaknesses
under standards established by the American Institute of Certified Public Accountants.
' A material weakness is a condition in which the design or operation of one or more of
the internal control structure elements does not reduce to a relatively low level the
103
Independent Auditor's Report on the City's
Internal Control Structure Used in Administering
Federal Financial Assistance Programs (Continued)
risk that noncompliance with laws and regulations that would be material to a federal
financial assistance program may occur and not be detected within a timely period by
employees in the normal course of performing their assigned functions. We noted no
matters involving the internal control structure and its operations that we consider
to be material weaknesses as defined above.
This report in intended for the information of management and the city council.
This restriction is not intended to limit the distribution of this report, which is a
matter of public record.
San Antonio, Texas
February 15, 1995
[1
certified Accountants
"
105
Thompson,
Williams,
NORTH TOWER Biediger, CERTIFIED PUBLICACCOUNTANTS
K
800 N.W. LOOP 910, SUITE 300 I1aSt + r
SAN ANTONIO. TEXAS 782165811 �CD1lL MEMBERS AMERICAN INSTITUTE OF
210/341 -2581
FAX 210/341 -2588 You CERTIFIED PUBLIC ACCOUNTANTS
The Honorable Mayor and
Members of the City Council
City of Schertz, Texas
' Independent Auditor's Report on Compliance
with the General Requirements Applicable to
Federal Financial Assistance Programs
We have audited the general purpose financial statements of City of Schertz, Texas,
as of and for the year ended September 30, 1994, and have issued our report thereon
' dated February 15, 1995.
We have applied procedures to test City of Schertz, Texas, compliance with the
' following requirements applicable to its federal financial assistance programs which
are identified in the Schedule of Federal Financial Assistance for the year ended
September 30, 1994: political activity, Davis -Bacon Act, civil rights, cash
management, federal financial reports, allowable costs /cost principles, Drug -free Work-
' place Act, and administrative requirements.
Our procedures were limited to the applicable procedures described in the Office
' of Management and Budget's Compliance Supplement for Single Audits of State and Local
Governments. Our procedures were substantially less in scope than an audit, the
objective of which is the expression of an opinion of City of Schertz, Texas,
' compliance with the requirements listed in the preceding paragraph. Accordingly, we
do not express such an opinion.
With respect to the items tested, the results of those procedures disclosed no
material instances of noncompliance with the requirements listed in the second
paragraph of this report. With respect to items not tested, nothing came to our
attention that caused us to believe that City of Schertz, Texas, had not complied, in
all material respects, with those requirements.
This report is intended for the information of management and the city council.
' This restriction is not intended to limit the distribution of this report, which is a
matter of public record.
*al- qe�ay-, 61"f
Certified Public Accountants
' San Antonio, Texas
' February 15, 1995
R. LARRYTHOMPSON, C.P.A. / PAUL E. WILLIAMS, C.PA. / JAMFSL.BIFDIGER,JR.,C.P.A. / C.TFDKASTOR,CPA. / CHARLIE E. YOUNG, JR., CPA.
JOHNLEIEC.PA. / H.LFESCHWARTZMAN,C.P.A. / F. GLENN CRAVEY, C.P.A. / FRFDJ.TIMMONS,C.P.A. / JOHN W. GREEN, C.P.A.
' JAMFS T. MCCARTY, C.P.A. (RETIRFD) 107
THOMPSON, WILLIAMS, BIEDIGER, KASTOR'A> YOUNG. L.C.
Cl
1
11
1
H
® NORTH TOWER
800 N.W. LOOP 410. SUITE 300
SAN ANTONIO, TEXAS 782165611
1
FAX 2
FAX 210//3434
42588
To the Honorable Mayor and
Members of the City Council
City of Schertz, Texas
Thompson,
Williams,
Biediger,
Kastor
Young,
L.C.
MEMBERS AMERICAN INSTITUTE OF
CERTIFIED PUBLIC ACCOUNTANTS
We have audited the general purpose financial statements of the City of Schextz,
Texas, as of and for the year ended September 30, 1994, and have issued our report
thereon dated February 15, 1995.
In connection with our audit on the general purpose financial statements of the
City of Schertz, Texas, and with our consideration of the City of Schertz, Texas,
internal control structure used to administer federal financial assistance programs,
as required by Office of Management and Budget (OMB) Circular A -128, Audits of State
and Local Governments, we selected certain transactions applicable to certain nonmajor
federal financial assistance programs for the year ended September 30, 1994.
As required by OMB Circular A -128, we have performed auditing procedures to test
compliance with the requirements governing types of services allowed or unallowed and
eligibility that are applicable to those transactions. Our procedures were
substantially less in scope than an audit, the objective of which is the expression on
an opinion on the City of Schertz, Texas, with these requirements. Accordingly, we do
not express such an opinion.
With respect to the items tested, the results of those procedures disclosed no
material instances of noncompliance with the requirements listed in the preceding
paragraph. With respect to items not tested, nothing came to our attention that caused
us to believe that the City of Schertz, Texas, had not complied, in all material
respects, with those requirements.
This report is intended for the information of the management and city council.
This restriction is not intended to limit the distribution of this report which is a
matter of public record.
Certified Public Accountants
San Antonio, Texas
February 15, 1995
R. LARRYTHOMPSON, C.P.A. / PAULE. WILLIAMS, CPA. / JAMES L. BIEDIGER, JR.,C.PA. / C.TED KASTOR, C.P.A. / CHARLIE E. YOUNG,JR., C.P.A.
JOHN LFIF,C.PA. / H. LEESCHWARTZMAN, C.P.A. / F. GLENNCRAVEY, CPA. / FRED J. TIMMONS, C. P.A. / JOHN W GREEN,C.BA.
JAMES T. McCARTY, OPA. (RETIRED) 109
THOMPSON, W ILI,IAMS, BIEDIGER KASTOR W YOUNG, L..C.