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CAFR FY 1991-19921 CITY OF SCHERTZ, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT l YEAR ENDED SEPTEMBER 30, 1992 LEAL, CARTER & ROCHA, P.C. CERTIFIED PUBLIC ACCOUNTANTS SAN ANTONIO, TEXAS I 1 1 D F 1 CITY OF SCHERTZ, TEXAS 1 COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 1992 i r 1 1 1 I I CITY OF SCHERTZ, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 1992 CITY OFFICIALS MAYOR Earl W. Sawyer CITY COUNCIL Barbara Stanhope, Mayor Pro -Tem (May to September 1992) Harold D. Baldwin, Mayor Pro -Tem (November 1991 to April 1992) Joe Potempa, Mayor Pro -Tem (June to October 1991) Kenneth Greenwald Mary Marsh CITY MANAGER Kerry R. Sweatt INDEPENDENT AUDITORS Leal, Carter & Rocha, P.C. OFFICIALS ISSUING REPORT Kerry R. Sweatt City Manager Debra Kline Finance Director i U CITY OF SCHERTZ, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT ' FOR THE YEAR ENDED SEPTEMBER 30, 1992 TABLE OF CONTENTS ' Page. No. INTRODUCTORY SECTION 1 ' Letter of Transmittal 2 -11 Organization Chart 12 GFOA Certificate of Achievement 13 ' FINANCIAL SECTION Independent Auditor's Report 17 ' General Purpose Financial Statements Combined Balance Sheet - All Fund Types ' and Account Groups 20 -25 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types 26 -29 ' Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - General and Debt Service Fund Types 30 -33 Combined Statement of Revenues, Expenses ' and Changes in Retained Earnings - All proprietary Fund Types 34 -35 tCombined Statement of Cash Flows - All Proprietary Fund Types 36 -38 tNotes to the Financial Statements 41 -63 U H ii Page No. Supplemental Information Combining, Individual Fund and Account Group Statements and Schedules: General Fund: Comparative Balance Sheets 68 Comparative Statements of Revenues, Expenditures and Changes in Fund Balances 69 Comparative Statements of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 70 -73 Debt Service Fund: Comparative Balance Sheet 76 Comparative Statements of Revenues, Expenditures and Changes in Fund Balances 77 Comparative Statements of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 78 Capital Projects Funds: Comparative Balance Sheet 82 Comparative Statement of Revenues, Expenditures and Changes in Fund Balances 83 Enterprise Funds: Combining Balance Sheet 86 -88 Combining Statement of Revenues, Expenses and Changes in Retained Earnings 89 -90 Combining Statement of Cash Flows 91 -93 iii tTable Page ' No. No. General Fixed Assets Account Group: Comparative Schedule of General Fixed Assets - By Source 97 Schedule of General Fixed Assets By Function and Activity 98 -99 STATISTICAL SECTION ' General Government Expenditures by Function 1 102 IGeneral Government Revenues by Source 2 103 Property Tax Levies and Collections 3 104 ' Assessed and Estimated Actual Value of Property 4 105 ' Property Tax Rates - Direct and Overlapping Governments 5 106 Ration of Net General Obligation Bonded Debt to Assessed Value and Net General Obligation Bonded Debt Per Capita 6 107 ' Computation of Direct and Overlapping Debt 7 108 Legal Debt Margin 8 109 Ratio of Annual Debt Service Expenditures for General Obligation Bonded Debt to Total General Expenditures - Last Ten Fiscal Years 9 110 Revenue Bond Coverage ' Water and Sewer Fund Schedule 10 -1 112 -113 Waterworks and Sewer System Fund Revenue Bond Requirements and Restricted Funds 10 -2 114 -115 iv Table Page No. No. Demographic Statistics - Last Ten Fiscal Years 11 116 Property Value, Construction, and Bank Deposits - Last Ten Fiscal Years 12 118 -119 Principal Taxpayers 13 120 Miscellaneous Statistics 14 121 -122 v H H u 1 Lam' LJ F LJ I INTRODUCTORY SECTION I .ate 1400 SCHERTZ PARKWAY , P. 0. DRAWER I SCHERTZ, TEXAS 78154 -0890 AC (210) 658 -7477 FAX (210) 659 -3204 March 23, 1993 To the Citizens of the City of Schertz, Texas KERRY R. S'WFATT ' CITY MANAGER The comprehensive annual financial report (CAFR) of the City of Schertz, Texas, (The City) for the year ending September 30, 1992 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 report is presented in the following three sections: 1. Introduction - Includes this letter of transmittal, Table of Organization, comments regarding economic conditions and outlook, major occurrences of FY 91 -92, and major initiatives for FY 92 -93. D I I I I I I I I I J i I I lJ 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 muti- year basis. ' This report includes all funds and account groups of the City of Schertz. The City provides a full range of services including: police and fire protection; water and sewer services; waste collection; code enforcement; comprehensive planning; street maintenance and recreational activities and accordingly, are excluded from this report. H I� 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 City resources. The Schertz Volunteer Fire Department Board has not met the criteria for inclusion in the reporting entity, and accordingly, are excluded from this report. H I� LI 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. While the economic condition and outlook of the area has improved , over the last year and signs of recovery appear, we are not "booming ", nor do we expect the kind "boom" experienced in the mid 80's. Nonetheless, we are optimistic the local economy is moving in a positive way, given the recent activity in housing starts. However, in a national election year, forecasting in the short term is difficult. ' CURRENT YEAR PROJECTS With a continuing interest in economical development , initiatives, expect new development opportunities as well as enhancement of existing businesses. We enjoyed a measurable improvement in the community economy over the last year and ' anticipate similar incremental growth over the next several years. A positive outlook is shared by all persons involved in the community's Economic Development Task Force 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 I -35 and similarly available land for development along the corridor between Houston /San Antonio , of IH -10. 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. J I� 1 J 1 The comprehensive plan initiative and the continuing visions long range views reflects the positive outlook with the emphasis on goals and objectives in the long term. Specific ' initiatives, include: increased emphasis and awareness of code enforcement activities, public information programs such as the establishment of an after -hours telephone message service, and the encouragement of greater citizen participation. Accomplishments during FY 92 -93 include: Expansion of IH -35 and F.M. 3009 will provide major improvements to our local roadway infrastructure and stimulate additional economic activity by improved traffic flow. The Schertz Development Foundation has purchased land and has developed marketing plans for a Icommercial /industrial area. 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, I 5 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 or disposition and ' * The reliability of financial records for preparing financial statements and maintaining accountability for assets. 1 The concept of reasonable assurance recognizes that: ' * The cost of a control should not exceed the benefits likely to be derived and, ' * The evaluation of costs and benefits required estimates and judgments by management. I 5 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, 1992. General Governmental Functions. Revenues which include General, Special Revenue, Debt Service and Capital Projects for general governmental function totaled $2,623,070 in 1992, an increase of 7.7% from 1991. Taxes produced 69.1% of general revenues compared to 71.3% last year. The amount of revenues from various sources and the increase /decrease from last year are shown in the following tabulation: Taxes (property, sales, etc.) Licenses and permits Charges for Services Fines and forfeits other revenues Percent Increase of (Decrease) Amount Total From 1991 $ 1,811,941 69.1% $ 65,888 53,316 2.0% 9,490 326,184 12.4% 49,676 221,856 8.5% 20,344 209,773 8.0% - 27,706 --- - - - - -- ----- - - - - -- $ 2,623,070 - - -- 100.0 $ 173,104 0 H I I P [1 U I I r, i ' Expenditures. For general governmental purposes, expenditures totaled $2,494,366, a decrease of 1.2% from 1991. Changes in levels of expenditures for major functions of the City over the preceding year are shown in the following tabulation: ' As reflected in the financial statements, general fund revenues including sales tax have generally increased with ad valorem ' taxes, which increased as a result of a tax rate increase of 2.00 cents per $100 value being one of the most significant areas. Through cooperative agreements with Guadalupe County, ' specific intergovernmental payments for services such as library, fire and S.A.F.E.S. have increased. Other major fluctuations include: a decrease in construction permit related items due to a slow down in single family home construction. General Fund expenditures have increased in a number of areas including overall personnel costs resulting from step increase and in areas of insurance premiums resulting from experience modification. A major shift in expenditures from the previous year as a result of a systematic plan to realign expenditures to more accurately reflect actual cost for specific functions and demonstrate true cost centers by activity or function has resulted in an overall lowering of General Fund Expenditures, I 1 Percent Increase of (Decrease) ' Function Amount Total From 1991 General Government $ 689,082 27.6% $ 29,267 Public Safety 843,582 33.8% 7,551 Streets and Parks 352,093 14.1% 9,119 Health Services 66,646 2.7% 830 Recreation 123,337 4.9% (27,715) Economic Development 36,728 1.5% 15,733 ' Capital Outlay 199,327 8.0% 16,405 Debt Service 183,571 7.4% (80,801) --- - - - - -- --------- $2_494_366- ----- 100_0 $- (29_611) ' As reflected in the financial statements, general fund revenues including sales tax have generally increased with ad valorem ' taxes, which increased as a result of a tax rate increase of 2.00 cents per $100 value being one of the most significant areas. Through cooperative agreements with Guadalupe County, ' specific intergovernmental payments for services such as library, fire and S.A.F.E.S. have increased. Other major fluctuations include: a decrease in construction permit related items due to a slow down in single family home construction. General Fund expenditures have increased in a number of areas including overall personnel costs resulting from step increase and in areas of insurance premiums resulting from experience modification. A major shift in expenditures from the previous year as a result of a systematic plan to realign expenditures to more accurately reflect actual cost for specific functions and demonstrate true cost centers by activity or function has resulted in an overall lowering of General Fund Expenditures, I 1 J Debt Administration. The ratio of net bonded debt to assessed ' valuation and the amount of bonded debt per capita are useful ' indicators of the City's debt position for municipal management, citizens, and investors. Bonded debt data for the ' City of Schertz at the end of 1992 fiscal year were as follows: Ratio of Debt ' To Assessed Value (100 %) Of Present Debt Per , Amount Market Capita_ Net Bonded Debt $ 687,715 .26 % $ 59.80 1 I Property Taxes. Current tax collections are 97.0% of the tax levy. This is the sixteenth consecutive year in which current , property tax collections have exceeded 96 %. The ratio of total collections (current and delinquent) to the current tax levy was 99.0 %. Allocations of property tax levy by purpose for 1992 and the preceding two fiscal years are as follows (amounts per $100 assessed value): 1992 1991 1990 , Purpose , General Fund .3185 .3063 .2706 General Obligation Debt .0704 .0626 .0477_ .3889 .3689 .3183 I 8 , Moody's Investors Service ' General Obligation Bonds Baa -1 Revenue Bonds A ' I Property Taxes. Current tax collections are 97.0% of the tax levy. This is the sixteenth consecutive year in which current , property tax collections have exceeded 96 %. The ratio of total collections (current and delinquent) to the current tax levy was 99.0 %. Allocations of property tax levy by purpose for 1992 and the preceding two fiscal years are as follows (amounts per $100 assessed value): 1992 1991 1990 , Purpose , General Fund .3185 .3063 .2706 General Obligation Debt .0704 .0626 .0477_ .3889 .3689 .3183 I 8 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 $ 91,044, a decrease of $51,009 interest earned on temporary investments during 1991. The decrease is again attributable to the lower overall interest rate available. Bank deposits and certificates of deposits are secured by governmental securities pledged by Schertz Bank and Trust and held in safe keeping 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, 1992, the general fixed ' assets of the City amounted to $ 9,517,621. 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 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, 1992. ' Water and Sewer System. During the fiscal year ended September 30, 1992, net revenues in the water -sewer system decreased. ' The coverage ratio of 7.9% continues to meet the revenue bond debenture agreement requirement that net revenues be at least 1.5 times the average annual debt requirement. Net revenues, ' is an amount derived in accordance with the bond indenture agreement. Comparative data for the past two fiscal years is presented below: ' 1992 1991 Total operating revenue $1,487,049 $1,515,854 ' Operating income (gross revenues less operating expenses) 283,475 29,946 Net revenues (operating income plus depreciation less solid waste revenues) 628,236 332,307 Average annual debt requirements 79,961 110,914 Coverage ratio 7.9 3.0 1 9 During the year, $80,000 of regularly maturing revenue bonds and $65,000 in certificates of obligation and $3,000 in Public ' Facility Bond from HUD were retired in the Water and Sewer Fund. Schertz Area Facility for Emergency Services (SAFES). During ' the fiscal year ended September 30, 1992, SAFES increased its revenue 12.8 % and increased operating expenses by 16.1 %. ' 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 loss before ' depreciation of $(5,498). $41,374 of that loss is attributable to provisions for future uncollectible accounts. 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, 1991. 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 three consecutive years. We believe , our current report continues to conform to the Certificate of Achievement Program requirements, and we are submitting it to GFOA. , The City Council has selected the firm of Leal, Carter and Rocha, P.C. to perform the independent audit for the FY 1991- 1992. 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. , 10 11 1 1 1 1 1 1 1 1 1 1 LJ 1 1 1 1 i 1 Acknowledgments. 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 Leal, Carter & Rocha, P.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, Kerry weatt ag City aner 11 AmAa Debra Kline Finance officer I CITY MANAGER I ASST. CITY MANAGER/ ECONOMIC DEVELOPMENT 1- Finance Officer PLANNING COORDINATOR I-Finan,e Clerk 7— I - Adminie tretive Assb. 1 -Adm. Secretary 1 -PT Finance Clerk 1 - Planning Secretary _ STREETS /PARRS DEPT. N 1 - Superintendent 1 - Asst. Superint. Z - Worker III 3 - Worker II 6 - Worker I 1 - PT Pool Manager T - PT Shift Chiefs 6 - PT Lifeguards LIBRARY 1 - Librarian 2 - Clerks 2 - PT Clerks 1 - Superintendent 1 - Asst. Superint. 1 - Foreman 3 - Serviceman II a - serviceman I 1 - Meter Reader II 1 - Meter Reader I 1 - Apprentice 1 - Sec /Dispatcher SAFES 1 - EMS Director 1 - Asst. Director 3 - EMT Attendants 19- PT Attendants INSPECTION DEPT. 1 - Inspector 1 - Asat. Inspect FLEET SERVICES 1 - Mechanic FIRE DEPT. 1 - Fire Chief 5 - Firemen 1 - PT Fire Inspect. 9 - PT Firefighters ANIMAL CONTROL 1 - Foramen 1 - A/C Officer 1 - Shelter Op. TAX DEPT. Tax Collector 1 Tax Clerk IDEPUTY CITY MANAGER /CITY SECRETARYI ADMINISTRATION DEPT. 1 - Office Manager/ Dep.City Sec. 1 - Dep. Court Clerk Z - Clerk Typist 1 - Receptionist 1 - Utility Clerk 90 - Full Time Employees 44 - Part Time Employees M MIM mmm M M M M M �rilfT�i�Ti1� MUNICIPAL BUILDING 1 - Old. Maintenance Supervisor 1 - Custodian 1 - PT Cust. Helper I - Police Chief 1 - Lieutenant 3 - Sergeants 1 - Sgt. /Juvenile Officer 1 - Warrant Officer 11 - Patrolmen 1 - Office Manager 5 - Dispatchers 2 - PT Crossing Guards i D 1 1 D D 1 1 1 1 1 i 1 1 1 1 1 11 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, 1991 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. �cE nrx�� iwrt MTB co wain s President 9� Ms°. ACutive Director 13 P! 1 11 1 u 1 1 I u This page intentionally left blank. , 14 1 LJ LJ 11 n [1 FINANCIAL SECTION 15 11 1 1 1 i D i 1 1 1 0 11 1 1 1 This page intentionally left blank. 1 1 11 16 F opinion on these financial statements based on our audit. ' We conducted our audit in accordance with generally accepted auditing standards. 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 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, at September 30, 1992, and the results of ' its operations and cash flows of its proprietary types for the year then ended, in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining, individual funds, and individual account group financial statements and schedules are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the City. Such information has been subjected to the auditing procedures applied in the examination of the general purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. The statistical data listed in the table of contents was not audited by us and, accordingly, we do not express an opinion thereon. March 23, 1993 17 LEAL, CARTER & ROCHA, P.C. CERTIFIED PUBLIC ACCOUNTANTS 8002 WEST AVENUE. SUITE 4 FRANK J. LEAL. C.P.A. SAN ANTONIO. TEXAS 78213-1865 TELEPHONE: (210) 342 -3562 ROBERTO CARTER. C.P.A. FAX, 12101 3427931 ' BILL C. ROCHA. C.P.A MEMBERS: AMERICAN INSTITUTE OF ROBERT V. HERRERA CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITORS' REPORT To the City Council and audit committee of the City of Schertz, ' Texas: We have audited the accompanying general purpose financial statements of the City of Schertz, Texas (The City), as of and for the year ended September 30, 1992, 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. ' We conducted our audit in accordance with generally accepted auditing standards. 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 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, at September 30, 1992, and the results of ' its operations and cash flows of its proprietary types for the year then ended, in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining, individual funds, and individual account group financial statements and schedules are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the City. Such information has been subjected to the auditing procedures applied in the examination of the general purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. The statistical data listed in the table of contents was not audited by us and, accordingly, we do not express an opinion thereon. March 23, 1993 17 I E F n This page intentionally left blank. ' 18 I n u 1 E 11 GENERAL PURPOSE FINANCIAL STATEMENTS 19 City of Schertz, Texas Combined Balance Sheet - All Fund Types and Account Groups September 30, 1992 compensated absences - - - - - -- - - - - -- - - - - - -- - - - - - -- -- - - - - -- Total assets $526,639 $15,428 $143,955 $768,955 -- - - - - -- - - - - --- - -- -- -- - - - - - - -- -------- - - - - - -- - - - - - -- -- - - - - -- The accompanying notes are an integral part of these statments. 20 Governmental Fund Types ------------------------------------ Special Debt Capital Assets and other debits General - - - - - -- Revenue Service Projects -- - - - - -- -- - -- - -- -- - - - - -- Assets: Cash and cash equivalents $148,533 $3,491 $1,385 $88,631 Investments 147,100 11,937 - 677,311 Receivables (net of allowances): Interest - - - 3,013 Taxes 66,838 13,764 - Accounts 8,234 - - - Due from other funds 143,046 - 128,806 - Inventory of supllies, at cost 12,855 - - - Other Receivables 33 - - - Restricted assets Cash and cash equivalents - - - - Investments - - - - Fixed assets (net, where applicable of accumulated depreciation) - - - - Organization costs (net, where applicable of accumulated amortization) - - - - Other debits: Amount available in debt service fund - - - Amount to be provided for retirement of general long term debt - - - - Amount to be provided for employee long -term compensated absences - - - - - -- - - - - -- - - - - - -- - - - - - -- -- - - - - -- Total assets $526,639 $15,428 $143,955 $768,955 -- - - - - -- - - - - --- - -- -- -- - - - - - - -- -------- - - - - - -- - - - - - -- -- - - - - -- The accompanying notes are an integral part of these statments. 20 21 Totals Proprietary Fund Types - Account Groups - -- -- - - - - - -- (Memorandum Only) ---------------- - - - - -- ---------------------- General General Internal Fixed Long -Term Enterprise ----- - - - - -- Service ----- - - - - -- Assets - - - - - -- Debt - - - - - -- 1992 - -- - -- 1991 - - - - -- $98,552 $5,976 $ - $ - $346,568 $299,009 521,348 - - - 1,357,696 864,594 - - - - 3,013 3,164 - - - - 80,602 74,477 246,704 - - - 254,938 307,990 85,910 - - - 357,762 121,446 71,522 2,250 - - 86,627 72,813 - - - - 33 8,267 - - - - - 119,775 657,169 - - - 657,169 1,052,909 5,331,873 63,226 9,517,621 - 14,912,720 14,910,953 859 - - - 859 907 - - - 51,990 51,990 (30,759) - - - 1,552,010 1,552,010 1,740,759 - - - 77,632 77,632 69,586 $7,013,937 $71,452 $9,517,621 $1,681,632 $19,739,619 $19,615,890 (Continued) 21 City of Schertz, Texas ' Combined Balance Sheet - All Fund Types and Account Groups September 30, 1992 ' Liabilities, equity and other credits Liabilities: Vouchers payables Note payable Compensated absences payable Payable from restricted assets: Deposits Revenue bond Certificates of obligation Public facility loan (HUD) Due to other funds Accrued vacation and sick leave Deferred revenue General obligation bonds payable Revenue bonds payable Certificates of obligation payable Contractual obligations Public facility loan (HUD) Accrued interest Total liabilities u - -- -- Governmental Fund Types , - - - -- -------------- - - - - -- Special Debt Capital General Revenue Service Projects ' -- - - - - -- - - - - - -- -- - - - - -- -- - - - - -- $29,417 $ - $ - $11,771 794 1,615 78,201 44,451 66,838 - 13,764 - -- - - - - -- - - - - - -- - - - - - -- - - - - -- $97,049 $1,615 $91,965 $56,222 -- - - - - -- - - - - - -- - - - - - -- - - - - -- The accompanying notes are an integral part of these statments. 22 Proprietary Fund Types Account Groups -- -------------- - - - - -- ------ - - - - -- General Internal Fixed Long -term Enterprise Service - Assets Debt $59,141 $42 $ - 111,800 - - 90,000 - - 65,000 - - 3,000 - - 232,484 217 - 22,589 1,677 - 1,650,000 - - 945,000 - - 93,000 - - 50,201 - - ---- - - - - -- - - - - - -- $3,322,215 $1,936 $ - ---- - - - - -- ---- - - - - -- - - - - - -- Totals (Memorandum Only) ----------- - - - - -- -1992- -1991- $ - $100,371 $42,299 77,632 77,632 69,586 - 111,800 114,244 - 90,000 80,000 - 65,000 65,000 - 3,000 3,000 - 357,762 121,446 - 24,266 12,500 - 80,602 74,476 689,000 689,000 735,000 - 1,650,000 1,740,000 815,000 1,760,000 11860,000 100,000 100,000 125,000 - 93,000 96,000 - 50,201 52,929 $1,681,632 $5,252,634 $5,191,480 --- - - - - -- --- - - - - -- ---- - - - - -- (Continued) 23 City of Schertz, Texas Combined Balance Sheet - All Fund Types and Account Groups September 30, 1992 Equity and other credits Contributed capital Investment in general Fixed assets Retained earnings: Reserved for revenue bond retirement Reserved for equipment replacement Reserved for capital recovery Unreserved Fund balances: Reserved for forfeited property Reserved for inventory of supplies Reserved for debt service Unreserved: Designated for economic development Designated for equipment replacement Designated for self insurance Undesignated Total retained earnings/ fund balances Total fund equity and Governmental Fund Types --------------------------------------- Special Debt Capital General Revenue Service Projects - - - - - -- - - - - - -- - - - - - -- -- - - - - -- $ 3,159 - - - 12,855 - - - - 51,990 - 21,324 - - - 45,000 - - - 347,252 13,813 - 712,733 -- - - - --- -- - - - - -- -- - - - - -- -- - - - - -- 429,590 13,813 51,990 712,733 other credits 429,590 13,813 51,990 712,733 - - - - - - -- -- - - - - -- - -- - - - -- -- - - - - -- Total liabilities and fund equity $526,639 $15,428 $143,955 $768,955 - - - - - - -- - - - - - -- -- - - - -- - - - - - - -- -------- - - - - - -- - -- - - -- -- -- - - -- The accompanying notes are an integral part of these statments. 24 t Proprietary Fund Types Account Groups ------ ---- ------ - - - - -- --- - - - - -- General General Internal Fixed Long -term Enterprise service Assets Debt ----- - - - - -- ---- - - - - -- - - - - - -- - - - - -- Totals (Memorandum Only) --------- --- ------ - - - - -- 1992 1991 $3,480,175 $62,892 $ - $ - $3,543,067 $3,174,685 - - 9,517,621 - 9,517,621 9,531,905 331,390 - - - 331,390 415,395 84,517 - - - 84,517 80,128 - - - - - 344,899 (204,360) 6,624 - - (197,736) 222,795 - - 3,159 - - - - 12,855 12,855 - - - 51,990 (30,759) - - - - 21,324 55,440 - 15,144 - - - - 45,000 45,000 - - - 1,073,798 556,923 --- - - - - -- --- - - - - -- - - - - - -- - - - - - -- ----- - - - - -- ---- - - - - -- 211,547 61624 - - 1,426,297 1,717,820 --- - - - - -- --- - - - --- - - - - - -- - - - - - -- ----- - - -- -- -- -- - - - - -- 3,691,722 69,516 9,517,621 - 14,486,985 14,424,410 --- - - - - -- -- - - -- - -- --- - - - - -- - - - -- -- --- -- - - - - -- ---- - - - - -- $7,013,937 $71,452 $9,517,621 $1,681,632 $19,739,619 $19,615,890 ---------- ---- - - - - -- ---- - - - - -- ---- - - - - -- ----- - - - - -- ----- - - - - -- 25 F The accompanying notes are an integral part of these statments. 26 1 ' City of Schertz, Texas Combined Statment of Revenue, Expenditures and Changes in Fund Balances All Governmental Fund Types ' For the Year Ended September 30, 1992 (With comparative totals for the year ended September 30, 1991) - - -- Governmental -- ' Special General Revenue Revenues: Taxes $1,811,941 $ - Licenses and permits 53,316 - Charges for services 326,184 - ' Fines and forfeits 221,856 - other sources - -- 106,937 -- 4,179 ' Total revenues 2,520,234 4,179 Expenditures: ---- - -- - -- - - -- - - -- ' Current: General government 689,082 - Public safety 843,582 - Streets and parks 352,093 - , Health 66,646 - Recreation Economic development 117,164 36,728 6,173 - ' Capital outlay 49,502 - Debt service: Principal retirement - Interest and fiscal charges - - Total expenditures --- - - - - -- 2,154,797 - - - - - -- - -6,173 ' Excess (deficiency) of revenues over (under) expenditures 365,437 (1,994) --- - - - - -- - - -- - -- ' F The accompanying notes are an integral part of these statments. 26 1 1 1 Totals Fund (Memorandum Only) Debt Capital Service Projects 1992 1991 - - - - - -- --- - - - - -- - - - - -- - - - - -- $ - $ - $1,811,941 $1,746,053 - - 53,316 43,826 - - 326,184 276,508 - 221,856 201,512 2,145 96,512 209,773 182,067 2,145 96,512 2,623,070 2,449,966 - - - -- - - - - - -- --- - - - - -- --- - - - - -- - - 689,082 - - 843,582 - - 352,093 - - 66,646 - - 123,337 - - 36,728 - 149,825 199,327 116,000 - 116,000 67,571 - 67,571 659,815 836,031 342,974 65,816 151,052 20,995 182,922 70,000 194,372 183,571 149,825 2,494,366 2,523,977 -- - - - - -- -- - - - --- --- - - - - -- - -- - - - - -- (.181,426) (53,313) 128,704 (74,011) -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- (Continued) 27 U City of Schertz, Texas ' Combined Statment of Revenue, Expenditures and Changes in Fund Balances All Governmental Fund Types For the Year Ended September 30, 1992 ' (With comparative totals for the year ended September 30, 1991) Governmental , ---------------- - - - - -- Special General Revenue - - - - - -- - - - - - -- Other financing sources (uses): Proceeds of contractual obligation - - ' operating transfers in 1,129 - operating transfers (out) (181,214) -- (1,129) ' Total other financial sources (uses) (180,085) - - - -- (1,129) --- - - - - -- Excess (deficiency) of revenues and other ---- - ' financing sources over (under) expenditures and other financing uses 185,352 (3,123) Fund balances, October 1, 244,238 16,936 ' Residual equity transfers from other funds - - ' Fund balances, September 30, $429,590 $13,813 I J 1 The accompanying notes are an integral part of these statments. ' 28 1 1 29 Totals Fund (Memorandum Only) ------------ Debt ---- - - - - -- Capital -------------------- Service - - - - - -- Projects --- - - - - -- 1992 - - - - -- 1991 - - - - -- - 125,327 264,175 - 265,304 160,262 - - (182,343) (160,262) 264,175 --- - - - - -- - ---- - -- - -- 82,961 -- - - - - - -- 125,327 --- - - - - -- 82,749 (53,313) 211,665 51,316 (30,759) 424,188 654,603 603,287 - 341,858 341,858 - $51,990 $712,733 $1,208,126 $654,603 29 n d City of Schertz, Texas ' Combined Statement of Revenue, Expenditures and Changes in Fund Balances - Budget and Actual - General and Debt Service Fund Type ' For the Year Ended September 30, 1992 -- General Fund -- - - - - °- ------ ----- --------------- Variance Favorable ' Budget Actual (Unfavorable) --- - - - - -- --- - - - - -- -- ----- - - - - -- Revenues: Taxes $1,772,127 $1,811,941 $39,814 , Licenses and permits 38,113 53,316 15,203 Charges for services 322,622 326,184 3,562 Fines and forfeits 231,507 221,856 (9,651) , Other 112,487 106,937 --- - - (51550) ---- - - - - -- Total revenues --- - - - - -- 2,476,856 -- -- 2,520,234 - - -- 43,378 ' Expenditures: Current: , General government 742,605 689,082 53,523 Public safety 889,814 843,582 46,232 Streets and parks 361,211 352,093 9,118 Health 73,646 66,646 7,000 ' Recreation 134,894 117,164 17,730 Economic development 36,867 36,728 139 Capital outlay 54,387 49,502 4,885 , Debt service: Principal - - - Interest - - - - -- --- -- - - -- - --- - - - - -- Total expenditures --- 2,293,424 2,154,797 138,627 Excess of revenues over --- - - - - -- --- - - - - -- ---- - - - - -- (under) expenditures 183,432 365,437 182,005 I 1 The accompanying notes are an integral part of these statments. 30 1 -Debt Service Fund ------------------------------ Variance Favorable Budget Actual (Unfavorable) -- - - - - -- --- - - - - -- ----- - - - - -- S 2,145 2,145 - -- - - -- -- - - - - -- - - - - - -- 2,145 2,145 - - - - - -- -- - - - - -- - - - - - -- 116,000 116,000 - 67,571- -- 67,571 - 183,571 --- - - - - -- 183,571 - --- - - - - -- --- - - - - -- (183,571) --- - - - - -- (181,426) 2,145 --- - - - - -- --- - - - - -- (Continued) 31 City of Schertz, Texas Combined Statement of Revenue, Expenditures and Changes in Fund Balances - Budget and Actual - General and Debt Service Fund Type For the Year Ended September 30, 1991 General Fund ------------------------------------- Variance Favorable Budget Actual (Unfavorable) --- - - - - -- --- - - - - -- ------- - - - - -- Other financing sources (uses): Operating transfers in $ - $1,129 $1,129 Operating transfers (out) (183,414) (181,214) 2,200 --- - - - - -- --- - - - - -- ---- - - - - -- Total other financing sources (uses) (183,414) (180,085) 3,329 --- - - - - -- --- - - - - -- -- -- - --- -- Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses 18 185,352 185,334 Fund balances, October 1, 244,238 244,238 - Residual equity transfers from other funds - - - --- - - - - -- --- - - - - -- ---- - - - - -- Fund balances, September 30, $244,256 $429,590 $185,334 --- - - - - -- --- - - - - -- --- - - - - - -- --------- --- - - - - -- ---- - -- - -- The accompanying notes are an integral part of these statments. 32 1 Debt Service Fund ----------------- - - ---- variance Favorable Budget Actual (Unfavorable) -- - - - - -- --- - - - - -- ----- - - - - -- $264,175 $264,175 $ - --- - - - - -- --- - - -- -- ---- - - - - -- 264,175 264,175 - --- - - - - -- --- - - - - -- ---- - - - - -- 80,604 82,749 (30,759) (30,759) $49,845 $51,990 2,145 $2,145 33 City of Schertx, Texas Combined Statement of Revenues, Expenses and Changes in Retained Earnings - All Proprietary Fund Types For the Year Ended September 30, 1992 (with comparative totals for the year ended September 30, 1991) Operating revenue: Fees charged to users Total operating revenue: Operating expenses before depreciation: Personal services Sewage treatment General and administrative expenses Contractual services supplies/maintenance Bad debts Total operating expenses before depreciation Operating income before depreciation Depreciation operating incomei(loss) (Continued) The accompanying notes are an integral part of these statments, 34 Totals (Memorandum only) Internal --------------------------- Enterprise - ---- -- - --- Service --- -- - -- --- 1992 -- --- --- - -- 1991 --- --- - - --- $1,833,283 ---- - --- -- $56,568 - --- --- --- $1489,851 ------ - --- $1,822,736 -- -- ------ 1,833,283 56,568 11889,851 1,822,736 469,942 25,994 495,936 458,834 405,282 405,282 440,665 243,386 - 243,386 180,808 174,842 8,390 183,232 197,901 220,480 13,450 233,930 126,726 41,314 -- -- -- - --- - ------ ---- 41,374 ------ ---- 38,000 -- -- - - - - -- 1,555,306 47,834 1,603,140 1,442,934 277,977 8,734 286,711 379,802 411,098 2,110 -- - - --- 413,208 --- -- --- 382,363 --------- -- - -- - --- ($133,121) - - -- -- $6,624 --- -- - - -- ($126,497) --- - -- - -- ($2,561) (Continued) The accompanying notes are an integral part of these statments, 34 City of Scherts, Texas Combined Statement of Revenues, Expenses and Changes in Retained Earnings - All Proprietary Fund Types For the Year Ended September 30, 1992 (with comparative totals for the year ended September 30, 1991) Enterprise Nonoperating revenue (expenses): Interest income $56,188 Interest expense (296,210) Amortisation (48) Loss an trade or sale of assets (12,591) Reimbursements 16,847 Total nonoperating revenues (expense) (233,814) Net income (loss) before operating interfund transfers (366,935) Operating transfers in (78,561) Net incame((loss) (445,496) Retained earnings, October 1, 1,953,217 Residual equity transfers out (406,174) Retained earnings, September 30, $211,547 35 Totals (Memorandum Only) Internal ------------------ - - - - -- Service 1992 1991 S $58,188 $112,990 (296,210) (200,316) (48) (48) (12,591) 16,847 38,676 (233,814) (48,698) 6,624 (360,311) (51,159) (78,561) - ----- - -- - -- - --- -- ------- 6,624 (438,872) (51,259) 1,063,217 1,114,476 (406,174) - - - -- ---------- ----- - - - -- $6,624 $218,171 $1,063,217 City of Schertx, Texas Combined Statement of Cash Flows - All Proprietary Fund Types For The Year Ended September 30, 1992 Cash flows from non-capital financing activities: Residual equity transfer (341,859) (341,859) - - ---- - -- --- -- ---- - - -- -- -- -- ---- - --- ------ Cash flows from capital and related Totals financing activities: (Memorandum Acquisition and construction Only) of capital assets Enterprise Internal ------------------ - - - --- Principal payments on long -term Funds Service 1992 1991 Cash flows from operating ---- - ------ ---- ----- ------ - --- -- activities: (296,210) (296,210) (202,623) Cash received from customers $1,882,078 $56,568 1,936,646 $1,785,745 Cash payments to suppliers for 1,100 --- --- ----- 1,100 225,229 goods and services (1,036,491) (23,831) (1,060,322) (950,383) Cash payments to employees for services (459,853) (24,317) (484,170) (458,834) Other 18,807 ----- ------ 18,807 38,676 Net cash provided by operating - -- ---- - -- ------ ---- ---- - --- -- activities 404,541 ----- - - -- -- 8,420 ------ - - -- 412,961 415,204 --- --- - --- ---- - - -- -- Cash flows from non-capital financing activities: Residual equity transfer (341,859) (341,859) - - ---- - -- --- -- ---- - - -- -- -- -- ---- - --- ------ Cash flows from capital and related financing activities: Acquisition and construction of capital assets (148,326) (2,444) (150,770) (380,026) Principal payments on long -term debt (138,000) (138,000) (138,000) Interest paid on long -term debt (296,210) (296,210) (202,623) Capital contributed for capital assets 1,100 --- --- ----- 1,100 225,229 Net cash used for capital -- -- - --- -- - --- ------ --- -- - -- -- and related financing activities (581,436) -- -- - - - - --- (2,444) (583,880) ---- --- --- --- - - - - - -- (495,420) ---- - - - - -- (continued) The accompanying notes are an integral part of these statments, 36 City of Scharts, Texas Combined Statement of Cash Flows - All Proprietary Fund Types For The Year Ended September 30, 1992 Cash flews from non- capital financing activities; Residual equity transfer (341,859) (341,859) - ----- - ----- --- ------ --- - --- - -- - ---- Cash flows from capital and related Totals financing activities: (Memorandum Acquisition and construction only) of capital assets Enterprise Internal ------------------ - - - - -- Principal payments on long-term Funds Service 1992 1991 Cash flows from operating --- -- - ----- - ---- - - - - -- - - - --- -- - - -- activities; (296,210) (296,210) (202,623) Cash received from customers $1,882,078 $56,566 1,938,646 $1,705,745 Cash payments to suppliers for 11100 -- ------ --- 1,100 - 225,229 goods and services (1,036,491) (23,831) (1,060,322) (950,383) Cash payments to employees for services (459,853) (24,317) (484,170) (458,834) Other 18,807 ----- ------ 18,807 38,676 Net cash provided by operating - --- --- - -- ---- ------ --- --- - - -- activities 404,541 --- -- - - ---- 8,420 - -- ---- - -- 412,961 415,204 ---- --- - -- ---- ---- -- Cash flews from non- capital financing activities; Residual equity transfer (341,859) (341,859) - ----- - ----- --- ------ --- - --- - -- - ---- Cash flows from capital and related financing activities: Acquisition and construction of capital assets (148,326) (2,444) (150,770) (380,026) Principal payments on long-term debt (138,000) (138,000) (138,000) Interest paid on long -term debt (296,210) (296,210) (202,623) Capital contributed for capital assets 11100 -- ------ --- 1,100 - 225,229 Net cash used for capital -- ------- ---------- ---- -- - --- and related financing activities (581,436) ----- --- - -- (2,444) (583,880) ---- - - -- -- --- - - -- - -- (495,420) --- ----- -- (continued) The accompanying notes are an integral part of these statments, 36 City of Schertx, Texas Combined Statement of Cash Flows - All Proprietary Fund Types For The Year Ended September 30, 1992 Cash flaws from investing activities: Proceeds from sale and maturities of investments Interest on investments Net cash provided by investing activities Net increase in cash Cash, October 1, 1991 Cash, September 30, 1992 Totals (Hemorandum only) Enterprise Interual --------------- - ----- Funds Service 1992 1991 ----- - - - - -- --- -- - -- - -- - --- -- - -- --- 749 58,188 _ 58,188 129,352 58,188 58,188 130,101 ------- - --- -- -- - --- - -- -- --- - -- - -- - --- -- -- --- (460,566) 5,976 (454,590) 49,885 1,737,635 1,737,635 1,687,750 ----- -- ---- ----- - - - --- - ---- - - - - -- ---- -- --- -- $1.277.069 $5,976 $1,283,045 $1= 737.635 37 (continued) L L City of Schertz, Texas ' Combined Statement of Cash Flaws - All Proprietary Fund Types For The Year Ended September 30, 1992 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 uncoliectible accounts Loss on sale of assets Other Change in assets and liabilities: Decrease (increase) in accounts receivable Increase in inventory increase in accounts payable Increase in due to other funds Increase in due from other funds Increase in accrued vacation and sick leave Decrease in interest receivable Decrease in accrued interest payable Decrease in customer deposits I i Totals (Memorandum ' Only) Internal ------------------------ Enterprise ----------- Service ---- - - - --- 1992 ------ 1991 - -- - -- , ($133,121) $6,624 ($126,497) ($2,561) 411,146 2,110 413,256 382,357 41,374 41,374 6,381 (121) (121) , 18,807 18,807 ' 19,912 19,912 (36,991) (11,564) (2,250) (13,814) (8,729) 23,630 42 23,672 3,OB5 ' 108,487 217 108,704 39,095 (79,077) (79,077) (6,833) 10,089 1,677 11,766 724 , 151 - 151 (2,728) `2,444) - (2,728) (2,444) $404,541 $8,420 $412,961 $376,528 i I ' NOTES TO FINANCIAL STATEMENTS ' The notes to the financial statements contain a summary of significant accounting policies and other notes considered necessary for a clear understanding of these statments. I I 1 L 1 r 1 41 CITY OF SCHERTZ, TEXAS , NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 1992 ' I" 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 GAAP. 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 applicable of these criteria, the following is a brief review of each potential component unit addressed in ' defining the City's reporting entity. F 42 [1 1 1 JF CITY OF SCHERTZ, TEXAS NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 1992 Note 1. Summary of Significant Accounting Policies (continued) A. Reporting Entity (continued) 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 as the only fund it has been reported in the special revenue fund of this report. Excluded from the reporting entity: Schertz Volunteer Fire Department Board. This board of local citizens works to provide private additional funding for fire equipment. This board is made up of private citizens not appointed by the City Council and has no management control or 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. 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." u 43 Note 1 CITY OF SCHERTZ, TEXAS ' NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 1992 Summary of Significant Accounting Policies (continued) B. Fund Accounting (continued) I 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. 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 operation of these funds are , included on the balance sheet. Fund equity ( i.e., net total assets) is segregated into contributed ca ital and retained earnings components. Proprietary fund -type operating statements present increases (e.g., revenues) , and decreases (e.g., expenses) in net total assets. 44 1 i.e., net total assets) is segregated into contributed ca ital and retained earnings components. Proprietary fund -type operating statements present increases (e.g., revenues) , and decreases (e.g., expenses) in net total assets. 44 1 ' CITY OF SCHERTZ, TEXAS NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 1992 ' Note 1. Summary of Significant Accounting Policies (continued) C. Basis of Accounting (continued) 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 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 franchise taxes, susceptible to accrual are special assessments, interest property taxes, revenue and charges ' for services. Licenses, fines and permits are not susceptible to accrual because generally they are not measurable until received ' in cash. period. Delinquent taxes are reported as deferred ' 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. 45 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. 45 CITY OF SCHERTZ, TEXAS ' NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 1992 , Note 1. Summary of Significant Accounting Policies (continued) 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 overexpenditures 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 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 Deposits with a maturity date within three months of the date acquired by the City. ' Investments generally consists of certificates of deposit with a maturity date greater than three months of the date acquired by the City and are recorded at cost, which approximates market value. ' 1 46 1 11 CI U 11 U I E 1 U I CITY OF SCHERTZ, TEXAS NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 1992 Note 1. Summary of Significant Accounting Policies (continued) F. Short -term Interfund Receivables / Payables During the course of operations, numerous between individual funds for goods provided or These receivables and payables are classified a funds" or "due to other funds" on the balance interfund loans are classified receivables / payables." G. Inventories transactions occur services rendered. s due from other sheet. Short -term as "interfund 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. 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 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. 47 CITY OF SCHERTZ, TEXAS ' NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 1992 [1 48 1 1 Note 1. Summary of Significant Accounting Policies (continued) ' I. Fixed Assets (Continued) 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. [1 48 1 F CITY OF SCHERTZ, TEXAS NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 1992 tNote 1. Summary of Significant Accounting Policies (continued) ' K. Long -term obligation Long -term debt is recognized as a liability of a governmental fund ' when aue, 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. L. 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. M. Bond Discounts /Issuance Costs L_ -I U n 49 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. L_ -I U n 49 CITY OF SCHERTZ, TEXAS NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 1992 Note 1. Summary of Significant Accounting Policies (continued) N. 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 nonroutine permanent transfers of equity are reported as residual equity transfers. All other interfund transfers are reported as operating transfers. 0. 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. P. 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 financial position 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. Q. Comparative Data Comparative total data for the prior year have been presented in the accompanying financial statements in order to provide an understanding of changes in the government's financial position and operations. R. Reclassifications Certain 1991 amounts have been reclassified to conform to 1992 presentations. 50 �J E LJ k 1 11 H U U I H I 1 U 1 F 1 H H U U 0 F 11 E CITY OF SCHERTZ, TEXAS NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 1992 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 At year end, the carrying amount of the City's deposits, including investments, was $2,361,433 and the bank balance was $2,346,254. Of the bank balance, $300,000 was covered by federal depository insurance and $2,046,254 was collateralized with securities held by the pledging financial institution's trust department or agent in the City's name. State statute authorizes the City to invest in obligations of the U. S. Treasury and certificates of deposit. The City's investments are certificates of deposit. Certificates of deposit must and are collateralized by U.S. Government securities. 51 CITY OF SCHERTZ, TEXAS ' NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 1992 Note 4. Receivables of October 1st on property values assessed as of January 1st. ' Receivables at September 30, 1992 consist of the following: the levy date without penalty or interest. Unpaid property taxes attach as an ' on Debt Capital penalty and interest. On July 1, General Service Projects Enterprise Total Receivables: expenses. Taxes $ 70,356 $ 14,489 $ - $ - $ 84,845 ' Account 8,234 - - 298,922 307,156 Interest - - -- -3,013 - 3,013 ' Gross Rec 78,590 14,489 3,013 298,922 395,014 Less: , allowance for uncollectible (3,518) (725) - (52,218) (56,461) Nettotal -- - - - - -- -- - - - - -- -- - - - - -- - - - - - -- - - - - - -- ' receivables $ 75,072 $ 13,764 $ 3,013 $246,704 $338,553 -- - - - - -- -- - - - - -- -- - - - - -- -- ---- -- -- - - - - -- The deliquent taxes receivable account represents past years of uncollected tax levies and is also reflected as a deferred revenue ' of equal amount. Property taxes are levied as of October 1st on property values assessed as of January 1st. 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 for collection and are subject to additional penalties for collection expenses. L F 52 D CITY OF SCHERTZ, TEXAS NOTES TO THE FINANCIAL STATEMENTS ' SEPTEMBER 30, 1992 ' Note 5. General Fixed Assets ' The following is a summary of changes in general fixed assets. Balances Balances at at ' 10101/91 Additions Deductions 9/30/92 Land $ 326,001 $ - $ _ $ 326,001 ' Buildings 1,013,103 400 1,013,503 Improvements other than ' buildings 6,763,193 11,126 - 6,774,319 Vehicles 599,091 - (4,165) 594,926 Equipment 830,517 28,663 (70,301) 788,879 Contruction in progress - 19,993 - - - -- ---- 19,993 - - - - -- ' ---- - - - - -- $9_531_905 -- - - - - -- $60_182- $(74_466) -- - - $9_517_621 The following is a summary of the property plant, and equipment of the Proprietary Funds at September 30, 1992. ' Enterprise Internal Water /Sewer SAFES Service Total ' Buildings $ 195,724 $ 26,656 $ 58,804 $ 281,184 Improvements other than buildings 8,204,098 - - 8,204,098 Machinery and equipment 468,467 312,856 13,809 795,132 8,868,289 339,512 72,613 9,280,414 ' Accumulated depreciation (3,799,612) (236,837) (9,387) -- - - - - -- (4,045,836) ---- - - - - -- ' ---- - - - - -- 5,068,677 -- - - - - -- 102,675 63,226 5,234,578 Land 160,521 ---- - - - - -- - - -- - -- -- - - - - -- 160,521 --- - - - - -- ' $5,229,198 ---------- $102,675 - - - - - -- $ 63,226 -- - - - - -- $5,395,099 --- -- - - - -- 53 CITY OF SCHERTZ, TEXAS NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 1992 Note 5. General Fixed Assets In the proprietary and useful lives are used to Buildings Sewer & Water Equipment internal service funds, compute depreciation: 30 years amines 50 years 5 -10 years 54 the following 1 1 t CITY OF SCBERTZ, TEXAS NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 1992 Nate 6. Long -Term Debt A. General Lang -Tern Debt The following is a summary of changes in general long term debt for the year ended September 30, 1992: 735,000 (46,000) 689,000 Certificates of Obligation: 1990 Series 850,000 7 - 9,0 1 850,000 Public Property Finance Contractual Obligation: 1991 Series 125,000 Total 0.0„ Certificates of Obligation, Contractual Obligation and Note Payable ($35,000) 815,000 -------- --------- 7,251 125,000 ($25,000) 100,000 ---- ---- -------- -- ------ -- ------- $1,710,000 ($106,000)$1,604,000 55 Balance Balance Outstand- Outstand- ing During Year ing Original Interest October 1, ---- ------------ --- October 1, Amount Rate 1991 Issued Retired - ------ ....... 1992 °----- G. 0. Bonds: -- ----- -- --- -- - - - ---- 1962 Series $301,000 3.63% $118,000 $ - ($10,000) $108,000 1972 Series 1501000 3.631 47,000 - (11,000) 36,000 1975 Series 175,000 6.2 -7.0 % 165,000 - (51000) 160,000 1987 Series 445,000 6.2 -8.3 1 405,000 (20,000) 385,000 735,000 (46,000) 689,000 Certificates of Obligation: 1990 Series 850,000 7 - 9,0 1 850,000 Public Property Finance Contractual Obligation: 1991 Series 125,000 Total 0.0„ Certificates of Obligation, Contractual Obligation and Note Payable ($35,000) 815,000 -------- --------- 7,251 125,000 ($25,000) 100,000 ---- ---- -------- -- ------ -- ------- $1,710,000 ($106,000)$1,604,000 55 CITY OF SCHERTZ, TEXAS NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 1992 Note 6. Lonq -Term Debt A. General Long-Term Debt (Continued) Balance Balance Outstand- Outstand- ing ing October 1, October 1, 1991 Additions Deductions 1992 - - ----- ------- ....... ----- -- Compensated Absences Payable $69,586 $77,632 ($69,586) $77,632 --- - ---- ------ - -- - -------- -- ----- -- D, Proprietary Loaq-Term Debt The following is a summary of changes in proprietary long term debt for the year ended September 30, 1992: Public Facility Loan (HOD): 142,000 5% 99,000 (3,000) 96,000 ........ --- -- -- ------ -- 56 Balance Balance Outstand- Outstand- ing ing Original Interest October 1, October 1, Amount Rate 1991 Retired ------- 1992 -- - - - -- Resenue Bonds; ....... . ...... ....... 1968 Series $579,000 4.0 -5.758 $140,000 ($30,000) $110,000 1973 Series 165,000 5.75 -6.10% 165,000 165,000 1975 Series 325,000 7.0 -7,751 245,000 (10,000) 235,000 1981 Series 475,000 9.0 -10.0% 310,000 (25,000) 285,000 1988 Series 1,020,000 6.3 -8.301 960,000 (15,000) -- ------ 945,000 --------- --- ------ 1,820,000 (80,000) 1,740,000 Certificates of - °-- -------- --------- obligation: 1981 Series . 150,000 9.3 -10.1 95,000 (10,000) $5,000 1983 Series 1,250,000 8.2 10.% 980,000 (55,000) 925,000 ------ --------- 1,075,000 -------- (65,000) --- 11010,000 Public Facility Loan (HOD): 142,000 5% 99,000 (3,000) 96,000 ........ --- -- -- ------ -- 56 I CITY OF SCBERTX, TEXAS NOTES TO THE FINANCIAL STATEMENTS ' SEPTEMBER 30, 1992 I I [I I Principal $605,000 $1,740,000 $1,825,000 $96,000 $100,000 Interest 239,201 1,086,936 1,009,778 50,800 11,238 $928,201 $2,826,936 $2,834,778 $146,800 $111,238 57 Note 6, Lang -Term Debt H. Proprietary Long -Term Debt (Continued) The annual requirements to amortize all debt outstanding as of September 30, 1991 ' including interest payments are as follows: Public Year ended General Revenue Certificates Facility Contractual September 30, Obligation Bonds of Oblig Loan (BUD) -------- Obligation -- --- --- ----- ----- 1993 1994 ------ -- -- 99,830 96,976 - -------- 218,672 217,105 ---------- 252,653 253,718 81800 8,600 36,163 38,806 1995 95,127 215,028 253,773 8,400 36,269 1996 98,115 207,587 250,843 81200 1997 94,049 204,938 258,421 8,200 t Thereafter 444,iO4 1,763,606 1,565,370 104,600 -- ----- - --- - -- ' -- -- -- - --- $928,201 -- ------- $2,826,936 ---------- $2,834,778 - $146,a00 $111_238 I I [I I Principal $605,000 $1,740,000 $1,825,000 $96,000 $100,000 Interest 239,201 1,086,936 1,009,778 50,800 11,238 $928,201 $2,826,936 $2,834,778 $146,800 $111,238 57 CITY OF SCHERTZ, TEXAS NOTES TO THE FINANCIAL STATEMENTS ' SEPTEMBER 30, 1992 I 11 58 Note 6. Long Term -Debt (Continued) Bonded debt of the City consists of various series of General Obligation Bonds, Revenue Bonds, Certificates of Obligation, Public Facility Loan (H.U.D.) and Public Property Finance Contractual Obligations. 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 are payable from a levy of ad valorem taxes upon all taxable property within the ' City, and are 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 Loan is ' payable from gross revenue derived from operations of the Water and Sewer Systems and has equal status with first lien revenue ponds. Public Property Finance Contractual Obligations are payable from a levy of ad valorem taxes upon all taxable property , within the City. I 11 58 1 1 CITY OF SCHERTZ, TEXAS NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 1992 Note 7. I:.terfund Assets /Liabilities The following is a summary of amounts due from and due to other funds as of September 30, 1992: 59 Due From Due To General Fund: Capital Projects $ 2,666 $ - Enterprise Funds 103,678 794 Internal Service 217 - Debt Service 34,870 - Library 11615 - Special Revenue General Fund - 11615 Debt Service: General Fund - 34,870 Enterprise Funds 128,806 43,331 Capital Projects Fund General Fund - 2,666 Enterprise - 41,785 Enterprise Funds General Fund 794 103,678 Debt Service 43,331 128,806 Capital Projects 41,785 - Internal Service Fund General Fund - 217 Total All Funds $357,762 -- - - - - -- -------- $357,762 - - - - - -- - - - - --- 59 I CITY OF SCHERTZ, TEXAS ' NOTES TO THE FINANCIAL STATEMENTS ' SEPTEMBER 30, 1992 I I , Note 8. Segment Information - Enterprise Funds The City has two enterprise operations which provide water /sewer ' and emergency ambulance services. Segment information for the twelve month period ended September 30, 1992, is as follows: Water /Sewer SAFES Total , Operating Revenues $1,487,049 $ 346,234 $ 1,833,283 Operating Expenses, , Exclusive of Depreciation 1,203,574 351,732 1,555,306 Depreciation 392,507 18,591 411,098 Operating Income (Loss) (109,032) (24,089) (133,121) Other Income (Expenses) (235,889) 2,075 (48,698) , Net Income (344,921) (22,014) (233,814) Operating transfers - out (78,561) - (78,561) Total Assets 6,753,690 260,247 7,013,937 ' Total Equity 3,461,447 230,275 3,691,722 Working Capital 582,222 127,600 709,822 Additions To Fixed Assets 322,801 5,897 328,698 Outstanding Long -Term Debt 2,688,000 - 2,688,000 I i 1 i i 1 i 1 i CITY OF SCHERTZ, TEXAS NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 1992 Note 9. Contributed Capital During the year, contributed capital increased by the following amounts: Water Internal and Sewer SAFES Service Source Fund Fund Fund Total Donation - Pipeline Construction $160,248 $ - Schertz SAFES Volunteer From To Association - stretcher - 11100 Enterprise Fund - $341,858 $ - Initial Capital Equipment - - Government - - 341,858 General Fund -Fixed Assets 11,621 - General Fund -Bond Payment 10,000 - Capital Projects Fund 122,521 - Total additions 304,390 11100 Contributed Capital, October 1 2,960,435 214,250 - - - - -- Contributed Capital, --- - - - - -- - September 30 $3,264,825 ---- - - - - -- ---------- $215,350 - - - - -- -- -- - - - - -- Note 10. Residual equity S - 62,892 $160,248 1,100 62,892 11,621 - 10,000 122,521 62,892 368,382 3,174,685 -- - - - - -- ---- - - - - -- $62,892 $3,543,067 - - - - -- ---- - --- -- ------ - --- - - - - -- Residual equity transfers are comprised as follows: From To Enterprise Fund - Capital recovery cash $341,858 $ - Equipment 64,316 - Capital Projects Fund - 341,858 Internal Service Fund - 62,892 General Fixed Assets - 1,424 $406,174 $406,174 61 CITY OF SCHERTZ, TEXAS NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 1992 Note 11. Commitments to Contingencies During the year the Schertz Fire Department Volunteers renewed a previous outstanding note with a balance of $7,991. The original proceeds of this note were used to purchase a fire truck. The vehicle is pledged as collateral. The volunteers subsequently donated the vehicle to the City. The City has guaranteed payment of this note if the fire department volunteers cannot generate sufficient funds to honor the note when it becomes due in August 1994. In a prior year the Schertz SAFES Volunteer Association purchased an ambulance and pledged the vehicle as collateral on the outstanding balance. The association donated the vehicle to the City. The City has guaranteed payment of a $41,760 note if the association cannot generate sufficient funds to honor the note when it becomes due. During the year the City paid on behalf of the association a $24,858 ($20,000 principal, $3,978 interest) note payment. The Association was given a new note for the remaining balance of $20,880 due September 1993. Note 12. Pension Plan substantially all full time employees of the City are covered by a defined contribution pension trust. Under this single employer plan, the City's only responsibility is to contribute 4% of each employee's salary on a monthly basis to the insurance company having complete fiduciary responsibility. Accordingly, the contributions were not actuarially computed and an actuary is not engaged by the City. The City's contribution for employees vested are as follows: Less than Five Years At Five Years Six to Ten Years Eleven to Fifteen Years Fifteen Years and after -0- 25% 5% additional per year 10% additional per year 100% vested 1 d 11 LEI F J [_J I 62 An employee who quits before the five year initial vesting period is.entitled only to his own contributions. Nonvested amounts contributed by the City are used to offset future payments. Total ' contributions (city and employee share) for the year ended September 30, 1992, were $75,765 with $17,821 and $57,944 charged to the Enterprise Funds, Fleet Service and General respectively. I 62 CITY OF SCHERTZ, TEXAS NOTES TO THE FINANCIAL STATEMENTS ISEPTEMBER 30, 1992 Note 12. Pension Plan {continued} The covered payroll for employees on the pension plan was $1,262,700 for the year ended September 30, 1992, and the city's t total payroll was $1,442,651. The City's and employees' required and paid contribution was $50,508 and $25,254 respectively or 4% and 2% of covered payroll. Note 13. Subsequent Events On November 1, 1992 the City issued $620,000 "City of Schertz, ' Texas General Obligation Bonds, Series 1992" for street improvements and drainage. I I I 1 I On November 1, 1992 the City issued $200,000 "City of Schertz. Texas Combination Tax and Junior Lien Revenue Certificates of Obligation, Series 1992" for construction of public works. 63 I ' COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS AND SCHEDULES SUPPLEMENTAL STATEMENTS CJ I I I I 1 65 I 1 GENERAL FUND 1 The General Fund accounts for the resources used to financial 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. 1 1 1 1 i 1 1 1 1 1 1 1 1 1 i 67 City of Schertz, Texas General Fund Comparative Balance Sheet September 30, 1992 and 1991 Assets Cash and cash equivalents Investments Accounts receivable Deliquent taxes receivable (net of allowances) Due from other funds Inventory of supplies, at cost Other receivables Total assets Liabilities and fund balances Liabilities: Vouchers payable Deferred revenue Due to other funds Total libilities Fund balances: Reserved for forfeited property Reserved for inventory of supplies Unreserved: Designated for economic development Designated for equipment replacement Designated for self insurance Undesignated Total fund balances Total liabilities and fund balances .: 1992 $148,533 147,.100 8,234 66,838 143,046 12,855 33 $526,639 $29,417 66,838 794 97,049 3,159 12,855 $526,639 1991 $129,123 9,000 61,815 99,032 12,855 8,267 $320,092 $6,788 61,815 7,251 75,854 12,855 55,440 15,144 45,000 115,799 244,238 $320,092 I 1 i I I I 1 Li � 11 i I I 21,324 45,000 j- 347,252 429,590 $526,639 1991 $129,123 9,000 61,815 99,032 12,855 8,267 $320,092 $6,788 61,815 7,251 75,854 12,855 55,440 15,144 45,000 115,799 244,238 $320,092 I 1 i I I I 1 Li � 11 i I I City of Schertz, Texas General Fund Comparative Statements of Revenue, Expenditures and Changes in Fund Balances For the Years Ended September 30, 1992 and 1991 1992 1991 Reveaues: -- - - - - -- -- - - - - -- Taxes $1,811,941 $1,746,053 Licenses and permits 53,316 43,826 Charges for services 326,184 276,508 ' Fines and forfeits 221,856 201,512 Other sources 106,937 149,759 ' Total revenues -- - - - - - -- 2,520,234 --- - - - - -- 2_417,658 Expenditures: Current: ' General government 689,082 659,815 Public safety 843,582 836,031 Streets and parks 352,093 342,974 Health 66,646 65,816 Recreation 117,164 146,413 Economic development 36,728 20,995 Debt service: Principal 25,000 Interest - 274 ' Capital outlay - -- 49,502 - - -- Total expenditures 2,154,797 2,097,318 Excess of revenues over (under) --- - - - - -- --- - - - - -- expenditures 365,437 --- - - - - -- 320,340 --- - - - - -- IOther financing sources (uses): Operating transfers - in 1,129 - ' Operating transfers - (out) - (181,214) (160,262) Total other financing sources (uses) (180,085) (160,262) - - Excess of revenues (deficiency) and other financing sources over (under) expenditures and other financing uses 185,352 160,078 Fund balances, October 1, 244,238 84,160 Fund balances, September 30, $429,590 $244,238 _ - - - - -- - - - - - -- 69 City of Schertz, Texas General Fund Comparative Statements of Revenue, Expenditures and Changes in Fund Balances - Budget and Actual For the Year Ended September 30, 1992 (With comparative actual amounts for the year ended September 30, 1991) Revenues: Taxes: Ad valorem Tax penalty City sales tax Utility franchise Other Total taxes Licenses and permits Charges for services: Utility administration Swimming pool Animal shelter Building rental Library and fire Other Total charges for services Fines and forfeitures Variance 1992 1992 Favorable 1991 1991 Budget Actual (Unfavorable) Budget Actual -- - - - --- - -- - - - - -- --- - ----- --- - ----- - - --- -- $1,043,394 $1,034,560 12,500 13,598 508,126 554,372 204,644 207,729 3,463 1,682 1,772,127 1,811,941 38,113 53,316 ($8,834) $968,838 $1,014,129 1,098 10,500 17,760 46,246 473,550 508,774 3,085 191,000 203,121 (1,781) 3,000 2,269 39,814 1,646,888 1,746,053 - - - - -- ----- ---- --- -- - --- 15,203 47,950 43,826 207,070 207,070 - 180,808 8 29,375 28,351 (1,024) 28,064 (8,536) 2,000 2,071 71 4,211 911 5,600 6,603 1,003 3,600 2,585 62,487 65,586 3,099 52,725 (5,275) 16,090 - - --- -- 16,503 --- ----- 413 -- ---- -- 10,700 -- ---- -- 100 - -- - -- -- 322,622 326,184 3,562 - - -- ---- 280,108 -- - - - - -- (10,207) -- -- - --- -- ---- -- 231,507 ---- ---- -- - - - - -- 221,856 -- --- - -- (9,651) --- - - - -- 201,512 -- ------ (114,503) -- - - - - -- 70 I City of Scherti, Texas 1 General Fund Comparative Statements of Revenue, Expenditures and Changes in Fund Balances - Budget and Actual ' For the Year Ended September 30, 1992 (With comparative actual amounts for the year ended September 30, 1991) 1 71 Variance variance 1991 1991 Favorable 1991 1991 Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) Other. sources - -- -- - - -- --- - - - - -- --- - - - --- --- - - - - -- -- -- ----- --------- Reimbursements 11,266 18,859 7,593 4,500 24,842 20,342 Substance abuse Retirement reversions 21,831 15,000 18,728 10,865 (3,103) (4,135) - 15,000 - 45,326 - 30,326 Cibolo Creek Muncipal Authority 6,200 5,498 (702) 6,200 6,103 (97) Interest 6,000 5,873 (127) 81000 10,608 2,608 Emerg Manag Coordinator 11,000 12,045 1,045 12,000 (12,000) Sale of assets 71000 2,994 (4,006) 1,000 4,013 ' Miscellaneous 34,190 32,075 (2,115) ------- 55,451 ---- ----- 56,282 -- ------- 831 -- - - - - -- Total other sources 112,487 106,937 (5,550) 650,796 19,874 (630,922) Total revenues --- - -- - - -- $2,476.856 -- -- ------ $2,520,234 -- ----- --------- $43,378 $2,827,254 --------- $1,685,043 - ---- --- (51,142,211) (Continued) 1 71 (Continued) 72 City of Schertz, Texas General Fund Comparative Statements of Revenue, Expenditures and Changes in Fund Balances - Budget and Actual For the Year Ended September 30, 1992 (With comparative actual amounts for the year ended September 30, 1991) Variance Variance 1992 1992 Favorable 1991 1991 Favorable - Budget - - - - --- Actual - -- --- -- (Unfavorable) ---- -- - - --- Budget - - -- - - -- Actual -- - - - --- (Unfavorable) ---- -- - - - -- Current General government: City council $16,248 $14,979 $1,269 $21,523 $12,945 $8,578 City manager 129,367 127,014 2,353 122,861 120,550 2,311 Tax 66,958 65,786 1,172 60,259 65,599 (5,340) Planning and zoning 81,345 81,316 29 72,007 69,056 2,951 Legal 33,800 47,393 (13,593) 27,300 39,444 (12,144) Municipal court 46,415 43,997 2,418 43,477 41,058 2,419 Municipal building 118,810 98,353 20,457 115,554 105,959 9,595 General administration 91,195 70,270 20,925 86,748 85,019 1,729 Other - unclassified 158,467 - ---- --- 139,974 ----- --- 18,493 -------- --- 120,757 -- ---- -- 120,185 --- ----- (27,997) --- -- -- -- Total general government 742,605 --- ----- 689,082 ---- ---- 53,523 ---- - -- -- -- 670,486 -------- 659,815 - --- ---- 10,671 --- -- ---- Public safety: Police department 636,211 600,637 35,574 663,873 599,544 64,329 Fire department 197,946 190,164 7,782 197,709 189,074 8,635 Inspection . 55,657 --- - - - -- 52,781 -------- 2,876 -- -- ----- 53,111 -- - -- --- 47,413 ---- ---- 5,698 -- ------- Total public safety 889,814 - -- - - -- 843,582 -- -- - --- 46,232 --- - - ---- 914,693 - - - - - --- 836,031 ----- --- 78,662 --- - --- -- Streets and parks: Streets 252,477 266,992 (14,515) 289,389 247,265 42,124 Parks 108,734 85,101 -- 23,633 - --- --- -- 102,244 -- -- - - -- 95,709 ---- ---- 6,535 - ------ -- Total streets and parks -- - - ---- 361,211 --- -- - -- ------ 352,093 -- - - - - -- 9,118 ----- - - ---- 391,633 -- --- - -- 342,974 - - - - - - -- 48,659 -- ------- Health: Animal control 73,646 - ---- --- 66,646 - - - - ---- 7,000 --- ---- -- -- 72,212 -- -- - --- 65,816 -- ------ 6,396 ------ --- Recreation: Swimming pool 61,335 46,487 14,848 64,606 53,583 11,023 Library 73,559 -- -- ---- 70,677 -- -- ---- 2,882 --- ---- - - -- 94,291 -- - --- -- 92,830 --- ----- 1,461 - ---- - -- Total recreation 134,894 -- - - - --- 117,164 - -- -- --- 17,730 --- -- ------ 158,897 -- ------ 146,413 -- ---- -- 12,484 -- - - - --- (Continued) 72 City of Schertz, Texas General Fund Comparative Statements of Revenue, Expenditures and Changes in Fund Balances - Budget and Actual For the Year Ended September 30, 1992 (With comparative actual amounts for the year ended September 30, 1991) variance Variance 1992 1992 Favorable 1991 1991 Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) -- - - - --- -- --- - -- ----- --- - -- - - - -- --- - - - -- - -- - ------- - -- Economic development $36,867 836,728 $139 $24,180 $20,995 $3,185 -- - - - - -- - --- - --- -------- -------- -------- --------- capital outlay 54,387 49,502 4,685 8,269 8,269 - - - - - - -- - ------ ----- - -- -- - - - - -- -------- --- - - - - -- Debt service; Principal 25,000 (25,000) Interest 274 (274) -- - - - --- -- --- - -- -- - - - --- -- ------ -------- --------- Total debt service 25,274 (25,274) -- - ----- -- - - - --- -- ---- -- -- - - ---- -- ------ --- ------ Total expenditures 2,293,424 2,154,797 Excess of revenues (deficiency) over expenditures 183,432 365,437 Other financing.sources (uses): Operating transfers in 1,129 Operating transfers (out) (183,414) (181,214) Total other financing sources (uses) (183,414) (180,085) Excess of revenues (deficiency) and other financing sources over (under) expenditures and other financing uses 18 185,352 Fund balances, Oct. 1, 244,238 244,238 - - - ---- - - - ---- Fund balances, Sept. 30, $244,256 $429,590 138,627 2,240,370 2,097,318 143,052 182,005 165,534 320,340 154,806 --- -- -- ---- - --- --- -- - -- -- ------- (1,129) (2,200) (160,262) (160,262) (3,329) (160,262) (160,262) - --- - -- -- - ----- -- -- - - -- --- - -- - -- 185,334 5,272 160,078 154,806 - 84,160 84,160 - - - ----- --- - -- -- - -- - ---- - - - -- 3185,334 $89,432 $244,238 $154,806 73 ' 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. [1 I I I 75 City of Schertz, Texas Debt Service Fund Comparative Balance Sheet September 30, 1992 and 1991 Assets Cash and cash equivalents Investments Deliquent taxes receivable (net of allowances) Due from other funds. Total assets Liabilities and fund balances Liabilities: Due to general fund Deferred revenue: Ad valorem taxes Total.libilities Fund balances: Reserved for debt service Total fund balances Total liabilities and fund balances 76 1992 1991 $1,385 $19,700 13,764 12,662 128,806 15,163 - - - - - -- $143,955 - -- - - -- ------- - - -- - -- $47,525 - - - -- -- - - - - - -- $78,201 65,623 13,764 - - - - -- 12,661 -- - - - - -- -- 91,965 78,284 51,990 -- - - - - -- (30,759) -- - - - - -- 51,990 -- - - - - -- (30,759) -- -- - - -- $143,955 $47,525 City of Schertz, Texas ' Debt Service Fund Comparative Statements of Revenue, Expenditures and Changes in Fund Balances ' For the Years Ended September 30, 1992 and 1991 J 77 1992 1991 Revenues: Interest income $2,145 $587 ' Total revenues 2,145 587 - - - - - - -- -- -- - - -- ' Expenditures: Debt service: Bond principal 116,000 45,000 Bond interest 64,413 193,816 Fiscal agent fees 3,158 282 Total expenditures -- - - - - -- - 183,571 -- - - - - -- 239,098 Excess of revenues over (under) expenditures (181,426) (238,511) Other financing sources (uses): tOperating transfers in 264,175 160,262 Operating transfers (out) - - ' Total other financing sources (uses) 264_175 160_262 Excess of revenues (deficiency) and other - - financing sources over (under) expenditures and other financing uses 82,749 (78,249) ' Fund balances, October 1, (30,759) 47,490 Fund balances, September 30, $51,990 ($30,759) J 77 City of Scherts, Texas Debt Service Fund Comparative Statements of Revenue, Expenditures and Changes in Fund Balances - Budget and Actual For the Year Ended September 30, 1992 (With comparative actual amounts for the year.eaded September 30, 1991) Revenues: Other: Interest income Total revenues Expenditures: Debt service: Bond principal Bond interest Fiscal agent fees Total expenditures Excess of revenues over (under) expenditures Other financing sources (uses): Variance 1992 1992 Favorable 1991 Budget Actual (Unfavorable) Budget -- - - - -- - -- --- -- -- - ---- ----- -- Variance 1991 Favorable Actual (Unfavorable) - - --- -- - -- - - -- -- $ $2,145 - - ---- -- $2,145 $ -- -- - ` -- -- -------- - $587 -- ---- -- ----- $587 -- ----- 2,145 •------- -------• 2,145 --- --- ---- -- ------ 587 ---- ---- --•-- 587 °-- --- 116,000 116,000 45,000 45,000 64,413 64,413 114,980 193,816 (78,836) 3,158 3,158 ---- --••--•- 282 -•- -------- 282 --- ----- -- --- - - - ---- -- -- ---- 183,571 - •----•- - --- 183,571 -------- ---- --- 160,262 - -- -- - - - --- 239,098 - - - ----- ------ ------ (183,571) (181,426) 2,145 (160,262) (238,511) 587 --- ° °- -------- ----- - --- -- ----- --- -- - - - --- - --- --- ----- Operating transfers in 264,175 264,175 160,262 160,262 Operating transfers (out) - ----- --- - -------- - - ---- ---- -- - -- - ---- -------- ---------- -- Total other financing sources (uses) 264,175 264,175 160,262 - - 160,262 -------- -- ---- -- -- -- Excess of revenues (deficiency) and -- ------ --- -- - -- --------- -- - -- --- other financing sources over (under) expenditures and other financing uses 80,604 82,749 21145 (78,249) 587 Fund balances, October 1, - (30,759) -- (30,759) - ------ -- 47,490 ---- --- -- -- --- -- 47,490 - ------ ------- -- - -- Fund balances, September 30, - ---- $49,845 $51,990 $2,145 $47,498 ($30,759) ($4,994) I ' CAPITAL PROJECTS FUND ' 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.) r 1 I 1 U I City of Schertz, Texas Capital Projects Fund Comparative Balance Sheet September 30, 1992 and 1991 Assets Cash and cash equivalents Investments Accrued interest Due from other funds Total assets Liabilities and fund balances Liabilities: Vouchers payable Due to other funds Fund balances: Unreserved - undesignated Total liabilities and fund balances I 1992 1991 $88,631 $54,598 677,311 369,295 3,013 3,013 - 418 $768,955 $427,324 -- - - - - -- -- - - --- -------- - - - - - -- $11,771 $ - 44,451 3,136 712,733 424,188 $768,955 $427,324 -- -- - - -- - - - - - -- -------- - - - - - -- I i U n 11 City of Schertz, Texas Capital Projects Fund Comparative Statements of Revenue, Expenditures and Changes in Fund Balances For the Years Ended September 30, 1992 and 1991 Revenues: other Capital recovery Interest income Total revenues, Expenditures: Capital outlay: Capital projects Total expenditures Excess of revenues over (under) expenditures Other financing sources (uses): Certificate of obligation proceeds Contractual obligation proceeds Total other financing sources (uses) ' Excess of revenues (deficiency) and other financing sources over (under) expenditures and other financing uses ' Fund balances, October 1, Residual equity transfers from other funds Fund balances, September 30, I 1992 $68,674 - -- 27,838 96,512 -- 149,825 149,825 1991 - -- 25,330 25,330 -- 182,922 182,922 (53,313) (157,592) --- - - - - -- --- - - - - -- (53,313) 424,188 341,858 $712,733 125,327 125,327 (32,265) 456,453 $424,188 ' PROPRIETARY FUND TYPES ' ENTERPRISE FUNDS 1] n 1 1 Enterprise Funds are established to account for operations which are intended to be self - supporting through user charges. The City operates the Water /Sewer System and the Schertz Area Facility for Emergency Services (SAFES) on this basis. on 5 I 11 City of Schertz, Texas Enterprise Fund Combining Balance Sheet t September 30, 1992 (With comparative totals for the year ended September 30, 1991) Enterprise Funds Water /Sewer Totals , System SAFES 1992 1991 --= - - - - -- --- - - - - -- --- - - - - -- --- - - - - -- Assets Current assets: Cash and cash equivalents Investments Accounts receivable (net) Accrued interest receivable Due from other funds Inventory of supplies, at cost Total current assets Restricted assets: Cash and cash equivalents Investments Total restricted assets Fixed assets: Land and improvements Buildings Improvements other than buildings Machinery and equipment Accumulated depreciation Construction in progress Other assets: Organizational costs Accumulated amortization Total fixed assets Total assets 8,204,098 - 8,204,098 7,757,475 468,467 312,856 781,323 800,632 (3,799,612) (236,837)(4,036,449)(3,663,092) - 42,328 , 1,900 - 1,900 1,900 ' $73,624 $24,928 $98,552 $92,549 -- 102,675 5,332,732 452,050 69,298 521,348 472,402 206,818 39,886 246,704 307,990 ' - - - 151 85,630 280 85,910 6,833 48,342 23,180 71,522 -- - - - - -- 59,958 -- - - - - -- , -- - - - - -- 866,464 -- - - - - -- -- - - - - -- 157,572 -- - - - - -- 1,024,036 -- - - - - -- 939,883 -- - - - - -- - - - 119,775 657,169 - 657,169 1,052,909 ' -- - - - - -- - 657_169 - - - - -- -- - -- - - - - -- -- - - - - -- 657,169 -- - - - - -- -- - - - - -- 1,172,684 -- - - - - -- , 160,521 - 160,521 160,521 , 195,724 26,656 222,380 281,184 8,204,098 - 8,204,098 7,757,475 468,467 312,856 781,323 800,632 (3,799,612) (236,837)(4,036,449)(3,663,092) - 42,328 , 1,900 - 1,900 1,900 (1,041) - - -- (1,041) - - - - -- (993) -- - - - - -- ' - -- 5,230,057 -- 102,675 5,332,732 5,379,955 , $6,753,690 $260,247 $7,013,937 $7,492,522 --------- ---- -- - - - - - -- --- - - - - -- --- - - - - -- --- - - - - -- ---- - - - - -- C�I ' City of Schertz, Texas Enterprise Fund Combining Balance Sheet ' September 30, 1992 (With comparative totals for the year ended September 30, 1991) E 1 11 Noncurrent liabilities: Revenue bonds payable, less current maturities 1,650,000 Cert. of obligation, payable less current maturities 945,000 Public facility loan 93,000 Total noncurrent liabilities Total liabilities 2,688,000 - 1,650,000 1,740,000 945,000 93,000 2,688,000 1,010,000 96,000 2,846,000 $3,292,243 $29,972 $3,322,215 $3,254,620 -- - - - - -- -- - - - - -- - - - - -- -- - - - - -- 87 (Continued) Enterprise Funds Water /Sewer Totals ' System SAFES- 1992 1991- Liabilities and equity - - Current liabilities: Vouchers payable $58,032 $1,109 $59,141 $35,511 Due to other funds 210,158 22,326 232,484. 45,436 Accrued vacation and ' sick leave 16,052 6,537 22,589 12,500 Total current liabilities - 284,242 -- - 29,972 - -- - ----- 314,214 -- 93,447 ' -- - - - - -- -- - - - - -- -- - - - - -- -- - - - - -- Current liabilities payable ' from restricted assets: Customer deposits 111,800 111,800 114,244 Revenue bonds 90,000 - 90,000 80,000 Cert. of obligation 65,000 - 65,000 65,000 ' Public facility loan 31000 _ 3,000 3,000 Accrued interest 50,201 - - -- 50,201 -- -- -- -- -- 52,929 - - - - -- Total current liabilities -- - - - - -- -- - - ' payable from restricted assets 320,001 -- - - - - -- -- - - - - --- 320,001 -- -- - - -- -- 315,173 - - - - -- E 1 11 Noncurrent liabilities: Revenue bonds payable, less current maturities 1,650,000 Cert. of obligation, payable less current maturities 945,000 Public facility loan 93,000 Total noncurrent liabilities Total liabilities 2,688,000 - 1,650,000 1,740,000 945,000 93,000 2,688,000 1,010,000 96,000 2,846,000 $3,292,243 $29,972 $3,322,215 $3,254,620 -- - - - - -- -- - - - - -- - - - - -- -- - - - - -- 87 (Continued) 7 I 11 City of Schertz, Texas Enterprise Fund , Combining Balance Sheet September 30, 1992 (With comparative totals for the year ended September 30, 1991) , Enterprise Funds Water /Sewer Totals System - SAFES -- -1992 - 1991 ' Equity: Contributed capital Retained earnings: $3,264,825 $215,350 $3,480,175 $3,174,685 ' Reserved for revenue bond retirement 331,390 - 331,390 415,395 Reserved for equipment ' replacement and capital improvements 84,517 - 84,517 80,128 Reserved for capital recovery - - - 344,899 ' Unreserved (219,285) 14,925 (204,360) 222,795 Total retained earnings --- - - - - -- - 196,622 --- - - - - -- --- -- - - -- -- 14,925 - - - - -- --- - - - - -- 211,547 - °- - - - - -- - -- - - -- -- 1,063,217 --- - - - - -- , Total equity 3,461,447 230,275 3,691,722 4,237,902 Total liabilities and equity $6,753,690 $260,247 $7,013,937 $7,492,522 --- - - - - -- --- - - - - -- --- -- - - -- --- - - - - -- I 11 I 1 F 1 J 1 I i 1 I City of Schertz, Texas Enterprise Fund Combining Statement of Revenues, Expenses and Changes in Retained Earnings For the Year Ended September 30, 1992 (with comparative totals for the year ended September 30, 1991) Operating revenues: Fees charged to users Total revenues 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) Enterprise Funds i4ater /Sewer System SAFES 1992 1991 --- - - - - -- --- - - - - -- --- - - - - -- --- - - - - -- $1,487,049 $346,234 $1,833,283 $1,822,736 1,487,049 --- - - -- -- 346,234 --- - - - - -- $1,833,283 --- - - - - -- 1,822,736 --- - - - - -- 278,365 405,282 237,586 137,676 144,665 191,577 5,800 37,166 75,815 41,374 469,942 405,282 0 243,386 174,842 220,480 41,374 458,834 440,665 0 180,808 197,901 126,726 38,000 1,203,574 351,732 1,555,306 1,442,934 --- - - -- -- --- - -- - -- --- - - - - -- --- - - - - -- 283,475 (5,498) 277,977 379,802 392,507 18,591 411,098 382,363 --- - - - - -- --- - - - - -- (109,032) --- - - - - -- (24,089) --- - - - - -- (133,121) (2,561) 89 (Continued) City of Schertz, Texas Enterprise Fund Combining Statement of Revenues, Expenses and Changes in Retained Earnings For the Year Ended September 30, 1992 (With comparative totals for the year ended September 30, 1991) 0 k 90 Enterprise Funds Water /Sewer ' System SAFES 1992 1991 Nonoperating revenues --- - - - - -- --- - - - - -- --- - - - - -- --- - - - - -- ' (expenses): Interest income $56,113 $2,075 $58,188 $112,990 Interest expenses (296,210) - (296,210) (200,316) ' Amortization (48) - (48) (48) Loss on trade or sale of assets (12,591) - (12,591) - ' Reimbursements 16,847 - 16,847 38,676 Other - - - - ' Total nonoperating revenues (expenses) (235,889) 2,075 (233,814) (48,698) --- -- - - -- --- - - - - -- -- -- - - - -- - -- - - - - -- '. Net income (loss) before operating transfers (344,921) (22,014) (366,935) (51,259) ' Operating transfers out (78,561) - (78,561) - Net income (loss) --- - -- --- --- (423,482) - - - - -- (22,014) --- - - - - -- (445,496) --- - - - - -- (51,259) , Retained earnings, October 1, 1,026,278 36,939 1,063,217 1,114,476 , Residual equity transfers out (406,174) - (406,174) - ' Retained earnings, September 30, $196,622 $14,925 $211,547 $1,063,217 --- --- - -- --- - - - - -- --- - - - - -- --- - - -- -- 0 k 90 1 1 City of Scherta, Texas Enterprise Fund Combining Statement of Cash Flaws - All Proprietary Fund Types For The Year Ended September 30, 1992 (With comparative totals for the year ended September 30, 1991) 91 Enterprise Funds Water /$ewer Total Total System SAFES 1992 1991 Cash flows from operating activities; Cash received from customers $1,572,054 $310,024 $1,882,078 $1,785,745 Cash payments to suppliers for goads and services (915,775) (120,716) (1,036,491) (950,383) Cash payments to employees for services (270,181) (189,672) (459,853) (458,834) Other 18,807 18,807 Net cash provided by operating activities 404,905 - ---- -- - - - -- (364) - °---------- 404,541 - ---- ------- 376,528 ----- -- - --- Cash flaws from non- capitai financing activities: Residual equity transfer (341.859) - -- - (341.859) -- -- ---- --- Cash flows from capital and related financing activities: Acquisition and construction of capital assets (143,742) (4,584) (148,326) (380,026) Principal payments on long-term debt (138,000) (138,000) (138,000) Interest paid on long-term debt (296,210) - (296,210) (202,623) Capital contributed for capital assets 1,100 1,100 - ---- ----- 225,229 - ----- - ----- Net cash used for capital - -- --- ------ ---- --- and related financing activities (577,952) - - - ---- (3,484) ------ - - -- (581,436) -- ------- --- (495,420) -------' ---- (continued) 91 City of Scherts, Texas Enterprise Fund Combining Statement of Cash Flows - All Proprietary Fund Types For The Year Ended September 30, 1992 (With comparative totals for the year ended September 30, 1991) Enterprise Funds Water /Sewer Totals Totals System SAFES 1992 1991 --------- --- ------ °----- -- --- ----- Cash flows from investing activities: Proceeds from sale and maturities of investments - - 749 Interest on investments 56,113 2,075 58,188 129,352 ----- --- - - -- ------ --- --- ----- ---- --- - ----- - ----- Met cash provided by investing activities 56,113 21075 581168 130,101 Met increase (decrease) in cash ------------ --------- (458,793) --- (11773) ------ --- --- (460,566) --- --- ------ 49,885 Cash, October 1, 1991 1,641,636 ---- --- - --- ---- 95,999 -- - ---- 1,737,635 --- - --- ----- 1,687,75o ------ - ----- Cash, September 30, 1992 - $1,182,843 $94,226 $1,277,069 $1,737,635 (continued) 92 I 1 E 1 93 ' City of Schertx, Texas Enterprise Fund Combining Statement of Cash Flows - All Proprietary Fund Types For The Year Ended September 30, 1992 ' (With comparative totals for the year ended September 30, 1991) ' Enterprise Funds Water /Sewer System SAFES Total 1992 Total 1991 Reconciliation of operating income (loss) ' to net cash provided by operating activities; Operating income (loss) ($109;032) ($24,089) ($133,121) ($2,561) Adjustments to reconcile operating income (loss) to net cash provided by operating activities; Depreciation/amortization 392,555 18,591 411,146 382,357 Provision for uncollectible accounts 41,374 41,374 6,381 Loss on sale of assets (121) (121) Other 18,807 18,80T Change in assets and liabilities; ' Decrease (increase) in accounts receivable 68,891 (481979) 19,912 (36,991) Increase in inventory Increase in accounts payable (5,860) 22,521 (5,704) 11109 (11,564) 23,630 (8,729) 31085 Increase in due to other funds 92,929 15,558 108,487 39,095 Decrease (increase) in due from ' other funds (78,797) (280) (79,077) (61833) increase in accrued vacation and sick leave 81184 11905 10,089 724 Decrease in interest receivable - 151 151 ' Decrease in accrued interest payable (2,728) {2,728) Decrease in customers deposits (2,444) (2,444) -------- ---- -- ---- ---- - -- - - - -- $404,905 ($364) $404,541 $376,528 E 1 93 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. U F I I n I 95 City of Schertz, Texas Comparative Schedule of General Fixed Assets - By Source September 30, 1992 and 1991 ASSETS General fixed assets: Land Buildings Improvements other than buildings vehicles Equipment Construction in progress Investment in general fixed assets by source: General fund Capital projects: General obligation bonds Cerificates of obligation Time warrants Contractual obligations Contributed 97 - -1992 $326,001 1,013,503 6,774,319 594,926 788,879 19,993 $9_517_621 $1,751,212 491,364 61,906 317,005 113,614 6,782,520 $9,517,621 1991 $326,001 1,013,103 6,763,193 599,091 830,517 $9_531,905 $1,787,402 491,364 41,913 317,005 113,614 6,780,607 $9,531,905 City of Schertz, Texas Schedule of General Fixed Assets - By Function and Activity For the Year Ended September 30, 1992 0 Transfers Balance Between Balance October 1, Depart- Deduc- September 30, 1991 Additions ments - -- tions - - - - - -- 1992 ----- - -- - -- General government -- - - - - -- $845,282 --- - - - - -- $6,133 -- - -- ($20,361) ($19,795) $811,259 Public safety: Police 312,915 1,906 6,581 (40,509) 280,893 Fire 500,182 2,570 (3,745) - 499,007 Inspection 22,121 - 475 - 22,596 Street: 6,378,671 11,002 1,560 - 6,391,233 Pool 541,036 0 - - 541,036 Parks 642,256 2,295 1,349 - 645,900 Health: Animal control 42,024 2,768 - - 44,792 Library 247,418 13,494 - - 260,912 Construction in progrss - 19,993 - - -- 19,993 $9,531,905 $60,161 ($14,141) ($60,304)$9,517,621 0 Components of General Fixed Assets - Improvements Other Than Land Buildings Buildings Vehicles Equipment - - - - - -- -- -- - - - - -- ---- - - - - -- -- - - - - -- --- - - - - -- $21,913 $623,236 $46,554 $6,676 $112,879 - - - 136,822 144,071 12,000 65,000 2,318 264,366 155,323 - - 139 11,113 11,344 83,227 400 51966,988. 151,223 189,396 - - 527,492 - 13,544 182,662 195,159 184,962 17,998 65,119 3,168 5,284 11,000 6,728 18,612 23,031 124,424 34,867 - 78,590 -- - - - - -- ---- - - - - -- - --- - - - - -- -- - - - - -- $326,001 $1,013,503 $6,774,320 $594,926 $788,878 I 17 I I 1 I I STATISTICAL SECTION 101 City of Schertz, Texas TABLE 1 General Governmental Expenditures By Function - - - - - -- Fiscal General Public Streets 99,770 Year - - -- Government ---- - - - - -- Safety -- - - - - -- And Parks --- - - - - -- Health - - - - - -- 1983 402,757 245,926 132,088 26,786 1984 486,178 310,000 167,002 30,885 1985 566,490 353,023 173,251 45,076 1986 620,680 416,578 202,929 43,929 1987 715,242 488,536 318,719 55,657 1988 807,754 523,000 283,323 47,507 1989 934,517 582,673 289,539 50,243 1990 654,009 796,823 327,797 56,150 1991 659,815 836,031 342,974 65,816 1992 689,082 843,582 352,093 66,646 (1) Includes general, special revenue and debt service funds 102 Total (1) Other Expenditures - - - - - -- ------ - - - - -- 105,525 913,082 105,455 1,099,520 99,770 1,237,610 182,739 1,466,855 188,193 1,766,347 216,662 1,878,246 189,199 2,046,171 339,241 2,174,020 436,419 2,341,055 393,138 2,344,541 City of Schertz, Texas General Government Revenues By Source Licenses Charges Fines Fiscal I And For And Year Taxes Permits Services Forfeitures Other 1983 688,169 31,434 29,691 60,581 221,900 1984 799,876 76,517 33,959 78,149 228,838 1985 926,883 73,521 30,440 92,437 200,701 1986 1,068,305 117,685 30,717 121,054 173,894 1987 1,152,108 76,821 32,459 159,837 203,837 1988 1,308,600 54,627 32,391 139,008 272,230 1989 1,360,611 53,045 31,235 145,830 305,348 1990 1,540,027 42,194 72,781 217,311 305,977 (2) (2) 1991 1,746,053 43,826 276,508 201,512 156,737 1992 1,811,941 53,316 326,184 221,856 113,261 TABLE 2 Total (1) 1,031,775 1,217,339 1,323,982 1,511,655 1,625,062 1,806,856 1,896,069 2,178,290 2,424,636 2,526,558 (1) Includes general, special revenue and debt service funds (2) Reclassification among these catagories performed in 1991 103 City of Schertx, Texas Property Tax Levies and Collections Bel in- quent Col lec- tions 1,379 10,977 2,629 4,193 7,083 18,548 14,943 19,324 37,972 19,995 104 TABLR 3 Ratio Percent Of Current Of Total Tax Current Fiscal Tax Collec- Levy Year . - ----- Levy -- -------- - tions --- -- ...... Collected .......... 1983 420,897 414,341 98,48 1984 448,860 443,070 98.79 1985 486,515 481,502 98.98 1986 545,931 532,537 97,59 1987 610,784 592,291 91.08 1988 706,369 674,931 95.68 1989 748,602 715,970 95.69 1990 914,388 864,723 94.68 1991 1,005,598 975,352 VA 1992 1,642,914 11014,564 97.08 Bel in- quent Col lec- tions 1,379 10,977 2,629 4,193 7,083 18,548 14,943 19,324 37,972 19,995 104 TABLR 3 Ratio Rates Of Of Total Out Belin- Tax stand- quent Total Collec- inq Taxes Tax tions Belin- To Callao- To Total quent Tax tions ________ Tax Levy ________ Taxes ...... Levy ....... 415,720 98.88 7,610 1.99 454,047 101.18 9,497 2.19 484,131 99.59 14,165 2198 536,730 98,39 19,523 3.68 599,374 100.38 29,594 4.88 694,017 98,258 41,915 5.98 730,913 97.648 56,270 7.59 884,047 96.78 86,122 9.49 1,013,324 101.09 78,396 7.88 1,034,559 49.08 84,843 8.18 City of Schertz, Texas TABLE 4 Assessed and Estimated Actual Value of Property - - - - - -- Fiscal Estimated Levy Year Actual Assessment Assessed Year Ended Values Percentage Valuations 1983 9 -30 -83 95,658,409 100% 95,658,409 1984 9 -30 -84 111,263,473 100% 106,871,357 1985 9 -30 -85 122,414,101 100% 111,586,009 1986 9 -30 -86 132,968,586 100% 125,018,837 1987 9 -30 -87 153,457,116 100% 147,961,601 1988 9 -30 -88 379,674,429 100% 285,978,200 1989 9 -30 -89 284,253,725 100% 290,606,339 1990 9 -30 -90 376,676,293 100% 287,272,356 1991 9 -30 -91 340,903,727 100% 272,593,690 1992 9 -30 -92 269,351,284 100% 268,170,123 105 Tax Tax Rate Levy .44 420,897 .42 448,860 .436 481,515 .436 545,931 .4128 610,784 24705 706,369 .2576 748,602 .3183 914,388 .3689 1,005,598 .3889 1,042,914 City of Schertz, Texas Property Tax Rates - Direct and overlapping Governments TABLE 5 * All rate shown are per $100 assessed valuation. ** Year shown is the fiscal year of collection. Taxes were levied the previous calender year. 1o6 County City School County Road Year ** -- -- - - - - -- - - - - -- - - -- 100% 100% 100% 100% Assessment Assessment Assessment Assessment Rate* -- - - -- -- Rate* -- - - - - -- Rate -- - - - - -- Rate -- -- - - -- 1983 .44 .76 .25 - 1984 .42 .74 .24 .04 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 TABLE 5 * All rate shown are per $100 assessed valuation. ** Year shown is the fiscal year of collection. Taxes were levied the previous calender year. 1o6 TABLE 6 City of Schertz, Texas - - - - - -- Ratio of Net General Obligation Bonded Debt to Assessed Value and Net General Bonded Debt Per Capita * Based on preliminary 1990 Census. This estimate has been challenged by the City. 107 Ratio Net Of Net General Fiscal Bonded Debt Bonded Year Estimated Assessed Net General ----- - - -- To Assessed - - Debt Per - - - - -- - - - -- 9-30-83 -- --- - - - - -- 9,250 - - - -- 95,658,409 - - 493,450 - -- .523 53.35 9 -30 -84 91600 106,871,357 423,009 .403 44.06 9 -30 -85 11,400 11,586,009 345,035 .313 30.27 9 -30 -86 12,500 125,213,487 324,351 .263 25.92 9 -30 -87 12,500 147,961,601 757,798 .513 60.62 9 -30 -88 12,580 285,978,200 758,401 .273 60.29 9 -30 -89 12,580 290,606,339 755,115 .263 60.03 9 -30 -90 10,681* 287,272,356 732,510 .253 68.58 9 -30 -91 10,900 272,593,690 715,300 .263 65.62 9 -30 -92 11,500 268,170,123 687,715 .263 59.80 * Based on preliminary 1990 Census. This estimate has been challenged by the City. 107 City of Schertz, Texas Computation of Direct and Overlapping Debt For the Year Ended September 30, 1992 Taping Body • Alamo Comm. College Dist • Bexar County • Comal County • Comal Independent School District • Guadalupe County' • Schertz - Cibolo- Universal City Independent • San Antonio River Auth. Net Amount $81,600,000 139,607,692 6,726,449 28,153,675 2,150,769 )ebt Percent ---- - - - - -- Over - As of Lapping 8 -31 -92 0.02% 3 -31 -92 0.02% 12 -31 -92 0.09% 8 -05 -92 0.12% 8 -01 -90 14.75% 9,455,000 8 -31 -92 27,989,384 6 -30 -90 Total Net Overlapping Debt * City of Schertz 1,691,444 9 -30 -92 Total Direct and Overlapping debt (2.73$ of Assessed Value - $663.90 Per Capita) TABLE 7 Amount Over - Lapping $16,320 27,922 6,054 33,784 317,238 51.88% 4,905,254 0.02% 9,473 $5,316,045 100.00% 1,691,444 $7,007,489 * Source of Data - Texas Municipal Reports, City of Schertz, 1992 compiled and published by Municipal Advisory Council of Texas. 108 ' City of Schert2, Texas TABLE S Legal Debt Margin - - - - - -- For the Year Ended September 30,1992 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 ' 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. 109 City of Schertz, Texas TABLE 9 Ratio of Annual Debt Service Expenditures for - - - - - -- General Obligation Bonded Debt to Total General Expenditures Last Ten Fiscal Years * Includes General, Special Revenue, and Debt Service Funds. 110 Ratio Debt Service Of Debt ------------------------ - - - - -- Service To Fiscal Total General Ended Principal Interest Debt Expenditures* ------- - - - - -- Expenditures ------ - - - --- -- - - - - -- 9-30-83 --- ---- -- 19,000 - - - - -- -- 29,227 - - - - -- 48,227 913,082 5.3% 9 -30 -84 20,000 28,577 48,577 1,099,520 4.4% 9 -30 -85 21,000 27,878 48,878 1,237,610 3.9% 9 -30 -86 21,000 26,233 47,233 1,466,855 3.2% 9 -30 -87 22,000 25,169 47,169 1,766,347 2.7% 9 -30 -88 24,000 72,900 96,900 1,878,246 5.2% 9 -30 -89 39,000 54,758 93,758 2,197,023 4.3% 9 -30 -90 45,000 52,049 97,049 2,174,020 4.5% 9 -30 -91 45,000 49,067 94,067 2,341,055 4.0% 9 -30 -92 46,000 46,084 92,084 2,344,541 4.1% * Includes General, Special Revenue, and Debt Service Funds. 110 Fiscal Ended 9 -30 -83 9 -30 -84 9 -30 -85 9 -30 -86 9 -30 -87 9 -30 -88 9 -30 -89 9 -30 -90 9 -30 -91 9 -30 -92 City of Schertz, Texas Water and Sewer Fund Revenue Bond Coverage Operating Revenue 793,279 997,997 1,172,755 1,309,269 1,339,061 1,502,210 1,729,271 1,557,554 1,515,854 1,487,049 Total Operating Expenses Before Depreciation --------------- 493,880 607,424 815,805 849,677 888,916 1,056,619 1,045,290 1,087,074 1,139,935 1,203,574 112 TABLE 10 -1 Operating Income Before Depreciation -- ------ - - - - -- 299,399 390,573 356,950 459,592 450,145 445,591 683,981 470,480 375,919 283,475 1 TABLE 10 -1 Debt Service Requirements Number of Customers Principal Interest Total Coverage Water Sewer 40,000 111,360 151,360 1.98:1 2,246 2,055 70,000 274,977 344,977 1.13:1 2,785 2,133 75,000 224,036 299,036 1.19:1 2,877 2,231 ' 83,000 217,379 300,379 1.53:1 3,208 2,333 105,000 271,454 376,454 1.20:1 3,498 2,639 ' 113,000 262,543 375,543 1.19:1 3,692 2,662 ' 128,000 267,943 395,943 1.73:1 3,859 2,906 138,000 247,580 385,580 1.22:1 3,712 3,028 83,000 139,423 222,423 1.69:1 3,751 3,086 80,000 134,473 214,473 1.32:1 3,859 3,177 113 City of Schertz, Texas TABLE 10 -2 ' Waterworks and Sewer System Fund ------- - - - - -- Revenue Band Requirements and Restricted Funds , For the Year Ended September 30, 1992 Series 1968: Principal Payment,.Due 9 -1 -93 Interest Payment, Due 3 -1 -93 Utility System Revenue Bonds, Series 1973: Principal Payment, Due 9 -1 -93 Interest Payment, Due 3 -1 -93 Utility System Revenue Bonds, Series 1975: Principal Payment, Due 9 -1 -93 Interest Payment, Due 3 -1 -93 Utility System Revenue Bonds, Series 1981: Principal Payment, Due 9 -1 -93 Interest Payment, Due 3 -1 -93 Utility System Revenue Bonds, Series 1987: Principal Payment, Due 9 -1 -93 Interest Payment, Due 3 -1 -93 Cash - restricted Funds Available Over Requirements 114 27,220 ' -- $9_000 , (Continued) ' Annual Requirement Principal/ At , Semi - Annual September 30, Interest Basis 1992 -- - - - - -- - - - -- - - - - -- ' , $35,000 1 /12th $2,917 3,163 1 /6th 527 1 /6th , 4,884 1 /6th 814 10,000 1 /12th 833 8,650 1 /6th 1,441 , 30,000 1 /12th 2,500 13,765 1 /6th 2,294 ' , 15,000 1 /12th 1,250 33,875 1 /6th 5,644 ' TOTAL REQUIREMENTS 18,220 Cash - restricted Funds Available Over Requirements 114 27,220 ' -- $9_000 , (Continued) ' I City of Schertz, Texas TABLE 10 -2 Waterworks and Sewer System Fund ----- - - - - -- ' Revenue Bond Requirements and Restricted Funds For the Year Ended September 30, 1992 1 Reserve Fund Requirement ------------------------ The City is required to make monthly deposits sufficient to meet the total reseeve fund requirement within 60 months of the closing date for the 1987 issue. City monthly deposits through September 30, 1992 ' met these requirements. ' 1 1/2 Time Average Annual Principal and Interest ' Requirement $53,307 $79,961 115 NCNB - CD $58,873 ' CDs at Schertz Bank & Trust 269,271 Cash 8 328,152 Funds Available Over (Under) Requirement $248,191 r REVENUE BOND COVERAGE - --------------------- Deduct Bonded Add Solid Debt Year Operating Depre- Waste "Net Require- Coverage Ended Income ciation Revenue Revenue" ment Ratio ' - - - -- --- - - - - -- -- - - - - -- -- - ----- - -- - - -- -- - - - - -- -- - -- - -- 1992 $283,475 $392,507 $47,746 $628,236 $79,961 7.9% 115 City of Schertz, Texas TABLE 11 Demographic Statistics -- - - - - -- Last Ten Fiscal Years Source: (1) (2) (3) (4) 1990 Bureau of the Census Department of Planning, University of Texas Department of Economics, University of Texas U.S. Department of Labor (Information not available for odd years) Texas Employment Commission Schertz - Cibolo- Universal City Independent School District 116 Level In Per Years Of Capita Median Formal School Unemployment Fiscal Income Age Education Enrollment Rate in Year - --- Population ---- - - - - -- (2) - - - - - -- (3) - -- - -- (3) - - - - - -- (4) - - - - - -- (3) -- - - - - -- 1983 9,180 est. $ - 40 12 2,092 6.7% 1984 9,600 est. 7,240 40 12 2,049 5.7% 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 10,555 9,600 42 12 4,175 4.6% 1991 10,900 13,436 35 14 4,309 6.3% Source: (1) (2) (3) (4) 1990 Bureau of the Census Department of Planning, University of Texas Department of Economics, University of Texas U.S. Department of Labor (Information not available for odd years) Texas Employment Commission Schertz - Cibolo- Universal City Independent School District 116 City of Schertz, Texas Property Value, Construction, and Bank Deposits Last Ten Fiscal Years 118 TABLE 12 Residential Commercial Construction ----------------- Construction - - - - -- Fiscal Number Value - - -- 1983 -- - - - - 56 -- $1,283,600 1984 37 6,213,816 1985 64 2,779,063 1986 15 1,600,154 1987 16 1,056,074 1988 17 325,577 1989 2 478,000 1990 22 1,988,605 1991 11 938,564 1992 11 664,016 118 TABLE 12 Residential Construction -------------------------- Number of units Value 24 $1,655,000 330 8,004,622 132 7,918,922 229 14,590,154 132 7,834,243 78 5,726,906 62 5,051,217 37 3,408,220 33 2,377,438 50 4,140,140 I ' TABLE 12 Sources: City Building Inspection Records City Tax Records ' S. W. T. Research Center Schertz State Bank Pacific Southwest * Estimated Actual Value [1 119 Property Value =� ---------------------------------------------- Bank Deposits Commercial Residential Nontaxable ' $29,743,000 $13,249,751 $50,960,220 $4,120,300 31,842,000 14,285,782 91,817,653 10,457,515 ' 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 Sources: City Building Inspection Records City Tax Records ' S. W. T. Research Center Schertz State Bank Pacific Southwest * Estimated Actual Value [1 119 City of Schertz, Texas Principal Taxpayers For the Year Ended'September 30, 1992 Type of Taxpayer Business White, Eric Commerical Garden Ridge Pottery Mercantile Sycamore.Partner's Furn. /Apts/ Mobile Park Negley Paint Co. Paint Company PSPI Industries /Corp Industrial Old Dominion Electric Co -Op Industrial Virginia Electric Power Co. Industrial Guadalupe Electric Co-Op Commerical Southwestern Bell Utility 120 1991 Assessed Valuation $5,667,669 3,422,797 3,100,000 3,028,512 2,647,943 2,504,020 2,504,020 2,256,630 1,078,510 $26,210,101 TABLE 13 Percentage Of Total Assessed Valuation 2.114% 1.280% 1.150% 1.130% 0.980% 0.930% 0.930% 0.840% 0.400% 9.754% ' City of Schertz, Texas TABLE 14 Miscellaneous Statistics -- - - - - -- For the Year Ended September 30, 1992 ' Date Incorporation: December 1958 of Date Firs`. Chapter Adopted: April 1974 Date Present Chapter Adopted: Amended March 1989 ' Form of Government: Council- Manager 1992 24.15 1991 23.75 ' 1989 22.42 1988 22.42 ' 1987 1986 22.38 21.51 1985 13.14 1984 12.82 1983 10.53 1980 8.99 Miles of Highways, Streets and Alleys: ' Streets and Highways, paved 88.95 miles Streets, unpaved 6.78 miles ' Alleys Sidewalks 3.44 miles 11.60 miles Miles of Sewer: Storm 1.8 miles ' Sanitary 35.0 miles Building Permits: Value ' Year Permits Issued of Buildings 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 1984 367 10,697,985 14,218,408 1983 400 5,411,680 1982 375 2,470,000 (Continued) 121 City of Schertz, Texas Miscellaneous Statistics Year Ended September 30, 1992 Fire Protection: Number of stations Number of employees (full and part -time) Number of volunteers Recreation: Parks: Playgrounds Other recreational facilities: Baseball fields Softball fields Large pavilion Small pavilion Picnic tables: Uncovered Restrooms: Male Female Concessions stands Community center City Employees: 30 September 1992 TABLE 14 ' 1 12 30 5 ' 64 10,597 3 2 10,000 sq. ft. covered 600 sq. ft. covered 50 6 6 1 1 m Elections: Number of registered voters 5,024 Number of votes in: Last municipal election 470 Percentage of registered voters voting in: Last municipal election 11.4% source: Municipal election records Population: Census population count 1991 (Estimate) 11,500 1990 10,597 1980 7,260 1970 4,061 1960 2, -281 1950 1,200 1940 600 122 1400 SCH ERTZ PARKWAY P. O: DRAWER I SCHERTZ, TEXAS 78154 -0890 AC (210) 658 -7477 FAX (210) 659 -3204 KERRY R. SWEATT QTY MANAGER March 23, 1993 Leal, Carter and Rocha, P.C. Certified Public Accountants 8002 West Avenue San Antonio, Texas 78213 -1865 Gentlemen: We are writing at your request to confirm our understanding that your audit of the general purpose financial statements of the City of Schertz, Texas (the City) as of and for the year ended September 30, 1992 was made for the purpose of expressing an opinion on whether the general purpose financial statements present fairly, in all material respects, the financial position of the City and the results of its operations, and the cash flows of its proprietary types in conformity with generally accepted accounting principles, we confirm, to the best of our knowledge and belief, the following representations made to you during your audit. 1. We are responsible for the fair presentation in the general purpose financial statements of financial position and results of operations of the City and the changes in financial position of its proprietary fund types in conformity with generally accepted accounting principles. The general purpose financial statements include all properly classified funds and account groups of the oversight and components units required by generally accepted accounting principles to be included in the financial reporting entity. 2. We have made available to you: a. Financial records and related data. b. Minutes of the meetings of the City Council and council committee meetings or summaries of actions of recent meetings for which minutes have not been prepared. Leal, Carter and Rocha, P.C. Page Two 3. To the best of our knowledge there have been no: a. Irregularities involving management or employees who have significant roles in the internal accounting and administrative control structure. b. Irregularities involving other employees that could have a material effect on the financial statements. C. Communications from governmental entities or agencies thereof concerning noncompliance with, or deficiencies in, financial accounting or reporting practices that could have a material effect on the financial statements. d. Violations or possible violations of budget ordinances, or laws or regulations (including those pertaining to adopting and amending budgets) whose effects should be considered for disclosure in the financial statements or as a basis for recording a loss contingency. e. Reservations or designations of fund equity that were not properly authorized and approved. 4. We have identified to you: a. All related legal, regulatory, and contractual provisions. 5. We have disclosed to you all Civil Rights complaints filed against us or investigations completed or in process, of which we are aware. 6. We have no plans or intentions that may materially affect the carrying value of classification of assets, liabilities, or fund balances. 7. The following have been properly recorded or disclosed in the financial statements: a. Joint ventures and related party transactions and related accounts payable or receivable, including revenues, expenditures, loans, transfers, leasing arrangements, and guarantees. b. Arrangements with financial institutions involving repurchase or reverse repurchase agreements, compensating balances, or other arrangements involving restrictions on cash balances and line -of- credit or similar arrangements. Leal, Carter and Rocha, P.C. Page Three C. Related party transactions and related amounts receivable or payable, including revenues, expenditures, loans, transfers, leasing arrangements, and guarantees. 8. There are no: a. Unasserted claims or assessments that our lawyer has advised us are probable of assertion and must be discloded in accordance with Statement of Financial Accounting Standards No. 5. b. Material transactions that have not been recorded in the accounting records underlying the financial statements. c. Material liabilities or gain or loss contingencies that are required to be accrued or disclosed by Statement of Financial Accounting Standards No. 5. 12. The City has no: a. Commitments for the purchase or sales of services or assets at prices involving probable material loss. b. Material amounts of obsolete, damaged, or unusable items included in the inventories at greater than salvage values. 13. The City has satisfactory title to all owned assets, and there are no leins or encumbrances on such assets nor has any asset been pledged except as disclosed in the general purpose financial statements or footnotes to the financial statements. 14. We have complied with all aspects of contractual agreements that would have a material effect on the financial statements. 15. We have identified all accounting estimates that could be material to the financial statements, including the key factors and significant assumptions underlying those estimates, and we believe the estimates are reasonable in the circumstances. 16. We have accounted for all general fixed assets sold, destroyed or abandoned, or considered to be obsolete and of no further use. Leal, Carter.and Rocha, P.C. Page Four 17. The City has committed to honor two outstanding notes of $7,991. and $20,880. for the Schertz Fire Department Volunteers and Schertz S.A.F.E.S. Volunteer Association, respectively. The commitment takes effect only if these organizations have not generated sufficient private funds to honor the notes as they mature in August and September 1993, respectively. It is anticipated that if the notes are not fully paid, a renewal arrangement will be attempted with the City guarantee to continue. During the current year (9- 30 -92) the city paid on the S.A.F.E.S. note $24,858 ($20,000 principal, #3,978 interest) due 9- 30 -92. 18. Subsequent Events On November 1, 1992 the city issued $620,000 "City of Schertz, Texas General Obligation Bonds, Series 1992" for street improvements and drainage. On November 1, 1992 the City issued $200,000 "City of Schertz, Texas Combination Tax and Junior Lien Revenue Certificates of Obligation, Series 1992" for construction of Public Works. Sincerely, 9� ---- , � /, 6 4Z 7 Z - , " � City Manager Financ Office