CAFR FY 1999-00COMPREHENSIVE
ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED
SEPTEMBER 30, 2000
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CITY OF SCHERTZ. TEXAS
CITY OF SCHERTZ, TEXAS
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
FISCAL YEAR ENDED
SEPTEMBER 30, 2000
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CITY OF SCHERTZ, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED SEPTEMBER 30, 2000
TABLE OF CONTENTS
INTRODUCTORY SECTION
PAGE
TABLE OF CONTENTS i
LETTER OF TRANSMITTAL iv
CITY OFFICIALS x
ORGANIZATIONAL CHART xi
CERTIFICATE OF ACHIEVEMENT xii
FINANCIAL SECTION
INDEPENDENT AUDITOR'S REPORT .......................................................................... ............................... 1
GENERAL PURPOSE FINANCIAL STATEMENTS ...................................................... ............................... 3
COMBINED BALANCE SHEET - ALL FUND TYPES, ACCOUNT GROUPS AND DISCRETELY
PRESENTED COMPONENT UNITS ........................................................................... ............................... 4
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND
BALANCES -ALL GOVERNMENTAL FUND TYPES AND DISCRETELY PRESENTED
COMPONENTUNITS .................................................................................................. ............................... 8
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND
BALANCES - BUDGET AND ACTUAL - GENERAL, SPECIAL REVENUE, AND DEBT
SERVICEFUND TYPES ............................................................................................ ............................... 10
COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED
EARNINGS - ALL PROPRIETARY FUND TYPES .................................................. ............................... 12
COMBINED STATEMENT OF CASH FLOWS - ALL PROPRIETARY FUND TYPES ........................ 13
NOTES TO FINANCIAL STATEMENTS .................................................................... ............................... 15
COMBINING AND INDIVIDUAL FUND AND ACCOUNT GROUP FINANCIAL
STATEMENTSAND SCHEDULES ............................................................................... ............................... 38
GOVERNMENTAL FUND TYPES
GENERALFUND ............................................................................................................ ............................... 39
COMPARATIVE BALANCE SHEETS .......................................................................... .............................40
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL ........................................................... ............................... 41
SCHEDULE OF REVENUES COMPARED TO BUDGET ........................................... .............................42
SCHEDULE OF CURRENT EXPENDITURES COMPARED TO BUDGET ............ ............................... 43
1
SPECIAL REVENUE FUNDS ........................................................................................... .............................44
COMBINING BALANCE SHEET - SPECIAL REVENUE FUNDS ............................. .............................45
COMBINING STATEMENT OF REVENUE, EXPENDITURES, AND CHANGES IN FUND -
BALANCES, SPECIAL REVENUE FUNDS ............................................................. ............................... 47
PARK SPECIAL REVENUE FUND - STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL ............................... ............................... 49
RECYCLING SPECIAL REVENUE FUND - STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL ...................... ............................... 50
HOTEL OCCUPANCY TAX SPECIAL REVENUE FUND - STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL ..................... 51
DEBTSERVICE FUND ................................................................................................... ............................... 52
COMPARATIVE BALANCE SHEETS .......................................................................... .............................53
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL ...................................................... ............................... 54
CAPITAL PROJECTS FUND ............................................................................................ .............................55
COMPARATIVE BALANCE SHEETS .......................................................................... .............................56
COMPARATIVE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE ..................................................................... ............................... 57
PROPRIETARY FUND TYPE
ENTERPRISEFUNDS ....................................................................................................... .............................58
COMBINING BALANCE SHEET ................................................................................ ............................... 59
COMBINING STATEMENT OF REVENUES, EXPENSES, AND
CHANGES IN RETAINED EARNINGS .................................................................... ............................... 61
COMBINING STATEMENT OF CASH FLOWS - ALL
PROPRIETARY FUND TYPES .................................................................................. ............................... 62
GENERALFIXED ASSETS .............................................................................................. .............................64
COMPARATIVE SCHEDULE OF GENERAL FIXED ASSETS BY SOURCE ........ ............................... 65
SCHEDULE OF GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY . ............................... 66
DISCRETELY PRESENTED COMPONENT UNITS .................................................... ............................... 68
COMBININGBALANCE SHEET ................................................................................ ............................... 69
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
INFUND BALANCE .................................................................................................. ............................... 70
REPORT ON COMPLIANCE AND INTERNAL CONTROL OVER FINANCIAL REPORTING
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS ........................................................ ............................... 71
STATISTICAL SECTION
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION - LAST TEN FISCAL YEARS ..... 74
GENERAL GOVERNMENTAL REVENUES BY SOURCE - LAST TEN FISCAL YEARS .................. 75
PROPERTY TAX LEVIES AND COLLECTIONS - LAST TEN FISCAL YEARS ... ............................... 76
m
ASSESSED AND TAXABLE VALUE OF PROPERTY - LAST TEN FISCAL YEARS .......................... 78
PROPERTY TAX RATES - ALL OVERLAPPING GOVERNMENTS - LAST TEN FISCAL YEARS.. 79
RATIO OF NET GENERAL BONDED DEBT TO TAXABLE VALUE AND NET GENERAL
BONDED DEBT PER CAPITA - LAST TEN FISCAL YEARS ............................... ............................... 80
COMPUTATION OF DIRECT AND OVERLAPPING DEBT .................................... ............................... 81
LEGALDEBT MARGIN .............................................................................................. ............................... 82
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL OBLIGATION
BONDED DEBT TO TOTAL GENERAL FUND EXPENDITURES - LAST TEN FISCAL YEARS.... 83
REVENUE BOND COVERAGE - UTILITY SYSTEM BONDS - LAST TEN FISCAL YEARS............ 84
WATERWORKS AND SEWER SYSTEM FUNDS - REVENUE BOND REQUIREMENTS AND
RESTRICTEDFUNDS ................................................................................................ ............................... 86
DEMOGRAPHICSTATISTICS ................................................................................... ............................... 87
PROPERTY VALUE AND NEW CONSTRUCTION - LAST TEN FISCAL YEARS .............................. 88
PRINCIPALTAXPAYERS ........................................................................................... ............................... 90
MISCELLANEOUS STATISTICS .................................................................................. .............................91
iii
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January 26, 2001
1400 SCHERTZ PARKWAY STEVE SIMONSON
P.O. DRAWER I INTERIM CITY MANAGER
SCHERTZ, TEXAS 78154-0890
AC (210) 658 -3510
FAX (210) 659 -3204
To the Citizens of the City of Schertz, Texas:
The comprehensive annual financial report (CAFR) of the City of Schertz, Texas, (the City) for the year
ending September 30, 2000 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 provide a review of various funds. We have attempted to provide all disclosures
necessary to enable the reader to gain maximum understanding of the City's financial activity.
The accompanying CAFR is presented in the following three (3) sections:
1. Introduction - Includes this letter of transmittal, Organizational Chart, comments regarding
economic conditions and outlook, major occurrences of fiscal year 1999 -2000, and major
initiatives for fiscal year 2000 -01.
2. Financial - This section consists of: the independent auditor's report, general purpose financial
statements including combined balance sheets and combined statements of revenues,
expenditures, and changes in fund balance, notes to financial statements, and individual fund
statements and account groups with supplemental statements. Within information contained in
this section is a review of the accounting system and controls, and includes commentary
thereto.
3. Statistical - This section includes selected financial and demographic information, generally
presented on a multi -year basis.
No Single Audit Reports were required for this audit period because the City did not meet the $300,000
threshold, as required by The Single Audit Act, for issuance of this report.
This report includes all funds and account groups of the City of Schertz. The City provides a full range
of services including: police, emergency medical transportation, and fire protection; water and sewer
services; waste collection; code enforcement; comprehensive planning; street maintenance and
recreational activities as well as economic development efforts. While the Schertz Public Library is an
operating department of city government, the Library Board serves as an advisory board and maintains a
small amount of funds, derived from private sources, as a means to fund specific
improvements /additions to the library outside City resources. The Schertz Development Foundation is a
separate nonprofit corporation organized and operated for the charitable purpose of assisting the City of
Schertz, Texas, to develop and implement plans for economic viability to the City. The Schertz Economic
Development Corporation was created to promote economic development in our City. The library,
economic development corporation, and the foundation are reported as component units, discretely
presented. The Schertz Volunteer Fire Department Board does not meet the criteria for inclusion in the
reporting entity, and accordingly, is excluded from this report.
ECONOMIC CONDITION AND OUTLOOK
The City is located near the center of the San Antonio Standard Statistical Metropolitan Area (SMSA) that
continues to rank as one of the highest tourist attractions in the Southwest. The economic conditions and
outlook remain sound. Statistical data for fiscal year 1999 -2000 includes new housing starts of 332,
compared to 520 for 1998 -1999 and 537 for 1997 -1998. Total building permits were $59,100,348 for
1999 -2000 compared to $76,501,637 in 1998 -1999 and $82,872,572 in 1997 -1998.
10
The current economic conditions remain strong. Unemployment in the area remains at historically low
levels at 3 %. The City of Schertz is at the southern end of the Austin /San Antonio Corridor, which
remains one of the fastest growing regions in the country. The City of Schertz can draw from a labor pool
of over 750,000. We are, however, beginning to see signs of labor shortages in certain segments of the
economy.
The near -term remains very positive. Commercial inquiries are steady, and the size and scope of the
projects seem to be growing larger as higher profile companies look at this area. The long -term outlook
also remains positive because of the underlying fundamentals of the area economy: a sizable but often
under - employed work force; competitive taxes; excellent quality of life; improving infrastructure; space for
continued growth; political stability; and continued forward planning in both the near and long term. Our
economy seems to mirror the national economy, and is affected by changes in the national economy far
more than one would anticipate given our size, especially changes in interest rates. Nonetheless, we
remain optimistic that our growth will continue, albeit at a slower pace.
CURRENT YEAR PROJECTS
Recent new developments as well as enhancement of existing businesses and the attitude that "nothing
breeds success like success" seem to effect relocation and growth activity for our area. A positive outlook
is shared by all involved in the community's economic development activities. The City is currently
working with several substantial prospects to relocate to the area. We continue to receive an ever - larger
number of inquiries, which is another positive economic sign. One of the major strengths of the City is an
abundance of land available for development along the San Antonio /Austin corridor of IH -35 and similarly
available land for development along the corridor between Houston /San Antonio of IH -10. Construction
began on FM 78 in Schertz in January 2000. The project is scheduled to take approximately 24 months
and will cost $8.3 million. This long awaited re- construction includes a new bridge that meets the 100 -
year flood requirement.
Development of an alternative water supply in partnership with the City of Seguin has moved into high
gear. Various permits and approvals have been obtained and the test well has shown more and better
quality water source than had been anticipated. The pipeline design has been completed and major portion
of the right -of -way has been obtained. Additionally, enough land has been purchased or leased to assure
water for the two cities for the next half a century, with the potential to be able to provide for the needs
of the adjoining cities and townships, as well. Pipeline construction is scheduled to begin in April 2001
and scheduled to be completed by July 2002. The second -phase joint bond issuance to fund the project is
scheduled for third week of February 2001. With water availability from the Wilcox - Carrizo aquifer a
reality, the future growth of the City of Schertz and its residents is assured well into the future.
MAJOR EVENTS
The major event of 1999 -2000 continues to be that of growth; however, we now see the beginnings of
a more balanced growth pattern between retail, industrial, and residential. We have had 158 new
residential lots platted during the past twelve months. Ashley Place, Dove Meadows, and Woodland
Oaks, Unit 5A, 5B, 6A, 613, and 6C Subdivision have completed their build -out with a combined total of
1089 new homes. The Greenshire subdivision is now building in its last section, which will bring their
combined new residential units to 505 when completed. The subdivisions of Carolina Crossing, Forest
Ridge, Woodbridge, Oak Trails, and Arroyo Verde continue to grow with several more years of residential
growth projected. The Jonas woods Subdivision is underway and, when completed, will bring 315 new
residential lots. The Wynn Brook Subdivision infrastructure is underway and a breakout is projected in
the spring of 2001. It is interesting to note that between the years of 1993 and August 2000 there
were 3,191 new residential lots platted. There may be some reduction of housing units in the next five
years because much of the prime tree - covered residential land is already in production for residential lots.
It appears, however, that the developers will continue to produce residential lots on available open land
with tree planting incentives and other inducements for upscale housing in the $150K + market. With
several existing subdivisions still in production of residential lots and several developers actively seeking
additional land, the new platted lot count could very easily reach 3,750 within the next three to five
years.
v
During the coming year we believe the City will continue to benefit from a positive outlook and the
results of earlier planning. In December 1997, the City issued 4.9 million dollars of general obligation
bonds pursuant to an August, 1997 election. Bonds for police, fire, and EMS building construction and
specific library building improvements were rated "AAA" with FGIC insurance, with an underlying rating
of "A" sold at an average effective interest rate of 4.8233 %. The August, 1997 election included
approval of an additional 112 cent sales tax levy to provide debt service for specific capital
improvements including those emergency service building projects. Construction on the three
emergency service buildings was completed in mid -year 2000, and the new Safety Complex was
dedicated at an open house in August 2000. The remodel work on the library was finished in the latter
part of 1999, and the renovation of the municipal building has also been completed.
Tri- County Business and Industrial Park continues to be a prime location, as a fully developed business
park. This year Bordertown (a combination store housing Taco Bell, Pizza Hut and Kentucky Fried Chicken,
along with a video arcade game room) has opened retail outlets complementing the existing mix of quick
food outlets at the intersection of IH -35 and FM 3009.
While we do not have a single major industrial employer, our rapid growth as a large distribution hub puts
Schertz in a position to attract manufacturing activity. Several new warehousing, distribution and storage
facilities came on -line during 2000. At the end of 2000, the City Council heard a proposal for the
construction of a liquor and wine wholesale warehouse/ distributorship, the largest in southwest Texas.
Construction has started and the operations are expected to begin by fall of 2001.
INITIATIVES FOR FUTURE
In the spring of 2001, the City will begin work with a consulting firm on a new comprehensive land plan
for the new millennium. Major areas to be addressed will include, but not be limited to: transportation,
recreation, planned future growth and infrastructure enhancements. Schertz is now evolving from being
a mere bedroom community for a metropolitan area to having a significant role to play in servicing the
distribution channels along the San Antonio - Austin corridor along 1 -35 to the North -East and San
Antonio - Houston route along 1 -10 West. Schertz has the distinction of stretching across three
counties and being the second largest city in each county.
FINANCIAL INFORMATION
The City's accounting records for general governmental operations are maintained on a modified accrual
basis, with revenues being recognized when they become both measurable and available and expenditures
being recognized when the services or goods are received and the liabilities are incurred. Accounting
records for the City's utilities and other enterprises are maintained on the accrual basis of accounting.
In developing and altering the City's accounting systems, consideration has been given to the adequacy of
internal accounting controls. Internal accounting controls have been designed to provide reasonable
assurance regarding:
The safeguarding of assets against loss from unauthorized use of disposition and,
The reliability of financial records for preparing financial statements and
maintaining accountability for assets.
The concept of reasonable assurance recognizes that:
The cost of a control should not exceed the benefits likely to be derived and,
The evaluation of costs and benefits required estimates and judgments by management.
All internal control evaluations occur within the above framework. The City's internal accounting controls
adequately safeguard assets and provide reasonable assurance of proper recording of financial
transactions.
vi
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, 2000.
General Governmental Functions: Revenues include general, special revenue, debt service, and capital
projects for general governmental function totaled $6,593,500 in 2000, an increase of 0.17% from 1999.
Taxes produced 62.01 °% of general revenues compared to 55.78% last year. The amount of revenues
from various sources and the increase /decrease from last year are shown in the following tabulation:
PERCENT INCREASE
OF (DECREASE)
AMOUNT TOTAL FROM 1999
Taxes (Property, Sales, Etc.) $4,088,491 62.01% $ 416,975
Licenses and Permits 731,488 11.09 51,172
Charges for Services 626,464 9.50 67,560
Fines and Forfeitures 444,331 6.74 64,747
Other Revenues 702,726 10.66 (589,472)
$6,593,500 100.00% 10,982
Expenditures: For general governmental purposes, expenditures totaled $8,602,863, a decrease of
12% from 1999. Changes in levels of expenditures for major functions of the City over the preceding
year are shown in the following tabulation:
PERCENT INCREASE
OF (DECREASE)
FUNCTION AMOUNT TOTAL FROM 1999
General Government
$1,558,650
18.12%
$ 251,162
Public Safety
2,212,924
25.72
151,436
Streets and Parks
793,700
9.23
(12,329)
Health Services
155,814
1.81
13,527
Recreation
259,848
3.02
(15,017)
Management Services
83,273
0.97
(195,785)
Bond Issue Cost
-
0.00
-
Capital Outlay
2,870,723
33.37
(1,373,453)
Debt Service
667,931
7.76
2,211
$8,602,863 100.00% $(1,178,248)
As reflected in the financial statements, general fund revenuers iqcluding sales tax as well as ad Valorem
taxes enerall ed Through cooperative agreements with Guadalupe County, specific
intergovernmenta payments for services such as library, fire, and SAFES have increased. Other major
fluctuations include: an increase in construction permits and related items due to an increase in total
construction. Genal fund expenditures have increased in a number of areas incluung_ overall person
costs resulting from step increases an i ems. a ieve overa area
in budget accounts
ore correc y re c actua cos ce vi y function than in years prior.
General obligation bonded debt data for the City of Schertz at the end of the 1999 fiscal year was as
follows:
vii
Net General Obligation Bonded
Debt (Principal)
General Obligation Bonds
Revenue Bonds
RATIO OF DEBT
TO ASSESSED
VALUE (100 %)
OF PRESENT
MARKET
AMOUNT DEBT
PER CAPITA
$5,321,410 0.84 $287.64
STANDARD
R PnnR'.q
A
A
Property Taxes. Current tax collections are 98.0% of the tax levy. This is the eighteenth consecutive
year in which current property tax collections have exceeded 97.0 %. The ratio of total collections
(current and delinquent) to the current tax levy was 99.97 %. Allocations of property tax levy by purpose
for 2000 and the preceding two fiscal years are as follows (amounts per $100 assessed value):
PURPOSE
General Fund
General Obligation Debt
2000 1999 1998
.3152% .3169% .3049%
.0304% .0375% .0505%
.3456% .3544% .3554%
Cash Management. Cash temporarily idle during the year was invested in short -term time deposits and
investment pools. The interest earned on such deposits during the year was $587,985, an increase of
$13,438 interest compared to earnings during 1999. This increase was due to more funds being invested
in investment pools. Bank deposits and certificates of deposit are secured by FDIC insurance and
governmental securities pledged by Schertz Bank and Trust and held in safekeeping by Frost Bank.
General Fixed Assets. The general fixed assets of the City are those fixed assets used in the performance
of general governmental functions and exclude the fixed assets of enterprise funds. As of September 30,
2000, the general fixed assets of the City amounted to $19,617,100. This amount represents the current
cost, or an estimate of the original cost of the assets. Depreciation of general fixed assets is not generally
recognized in the City's accounting system.
The City is self- insured on physical damage to specific vehicles. In order to provide coverage for this, risk
funds are designated within the general fund with a balance of $45,000 at September 30, 2000 and an
allocation within the reserve of $345,700.
Water and Sewer System. Comparative data for the past two fiscal years is presented below:
Total Operating Revenue
Operating Income (Gross Revenues
Less Operating Expenses)
Net Revenues (Operating Income Plus
Depreciation Less Solid Waste Revenues)
Average Annual Bonded Debt Requirements
an
2000 1999
$3,958,054 $3,250,589
759,358
1,1 17,644
147,747
626,171
1,021,961
133,233
During the year, $35,000 of maturing revenue bonds and $5,000 in Public Facility HUD Bond and
$29,821 of a note payable (New Braunfels Utilities) were retired in the water and sewer fund.
City Of Schertz Emergency Services. During the fiscal year ended September 30, 2000, Emergency
Services operations revenues increased 9.7% and operating expenses were increased by 1.9 %. This
activity is fully dependent on income fees generated from services rendered and the contracted cities'
support to cover operations costs. This year there was an operating loss before depreciation of $29,582.
OTHER INFORMATION
Award The Government Finance Officers Association of the United States and Canada (GFOA) awarded
a ertificate of Achievement for Excellence in Financial Reporting to the City for its comprehensive annual
financial report for the fiscal year ended September 30, 1999. The Certificate of Achievement is the
highest form of recognition for excellence in state and local government financing reporting.
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 12 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 Armstrong, Vaughan & Associates, P. C., of Universal City, Texas,
to perform the independent audit for the fiscal year 1999 -2000. We find the background experience and
interest of the firm will assure the accomplishment of the audit function in an outstanding manner and will
provide educational training opportunities for our staff.
Acknowledgements. I want to extend my thanks to the Mayor and members of the City Council for their
interest and support in planning and conducting the financial operations of the City in an effective and
efficient manner. Mr. Vijay Jain of our staff and Ms. Nancy Vaughan, along with other representatives of
the audit firm of Armstrong, Vaughan & Associates, P. C., have provided a high degree of expertise and
assistance for the preparation of the report. I wish to express my personal thanks and appreciation to
everyone involved in the audit process for their help. I am especially appreciative of both City and the
audit firm staff working together to assure a smooth transition from our prior audit firm to Armstrong,
Vaughan & Associates. Also, I would like to commend Ms. Vaughan's patience in reviewing the financial
information that involved migration from City's old Financial Management software to a Y2K- compliant
integrated system.
Respectively Submitted,
Steve Simonson
Interim City Manager
ix
MAYOR
CITY COUNCIL
INTERIM CITY MANAGER
COMPTROLLER
CITY OF SCHERTZ, TEXAS
CITY OFFICIALS
HONORABLE HAL BALDWIN
REGINA AGEE
MAYOR PRO -TEM
(DECEMBER 21, 1999 TO AUGUST 15, 2000)
KENNETH GREENWALD
PIA JARMAN
(OCTOBER 1, 1999 —MAY 4, 2000)
NORMA HEAD
(MAY 4, 2000)
JOE POTEMPA
MAYOR PRO -TEM
(MAY 4, 1999 TO DECEMBER 21, 1999)
GLYN D. WILLIAMS
MAYOR PRO -TEM
STEVE SIMONSON
VIJAY JAIN
INDEPENDENT AUDITORS
Armstrong, Vaughan & Assoc., P.C.
Universal City, Texas
OFFICIALS ISSUING REPORT
Steve Simonson
Interim City Manager
Vijay Jain
Comptroller
x
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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, 1999
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.
3 wo
resident
Executive Director
X11
FINANCIAL SECTION
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ARMSTRONG, VAUGHAN & ASSOC., P.C.
................................................................... ...............................
CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITOR'S REPORT
The Honorable Mayor and
Members of the City Council
City of Schertz, Texas
We have audited the accompanying general - purpose financial statements of the City of Schertz, Texas, as of
and for the year ended September 30, 2000, as listed in the table of contents. These general- purpose
financial statements are the responsibility of the City of Schertz, Texas', management. Our responsibility is
to express an opinion on these general - purpose financial statements based on our audit. The general -
purpose financial statements of the City of Schertz as of September 30, 1999 were audited by other auditors
whose report dated February 10, 2000, expressed an unqualified opinion on those statements.
We conducted our audit in accordance with generally accepted auditing standards and the standards
applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller
General of the United States. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the general - purpose financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the general- purpose financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the general - purpose financial statements referred to above present fairly, in all material
respects, the financial position of the City of Schertz, Texas, as of September 30, 2000, and the results of its
operations and cash flows of its proprietary fund types and nonexpendable trust funds for the year then
ended in conformity with generally accepted accounting principles.
(As more fully described in Note N, subsequent to the issuance of the City of Schertz, Texas' 2000 general
purpose financial statements and our report thereon, dated December 20, 2000, we became aware of certain
errors resulting in an overstatement of accounts payable and current expenditures in the Capital Projects
Fund. Accordingly, the statements have been revised as of March 12, 2001 to correct the error. In our
original report, we exl�sed an unqualified opinion on the 2000 general- purpose financial statements, and
our opinion on the revised statements as expressed herein,.rema3n&�u- equal' fed.
In accordance with Government Auditing Standards, we have also issued a report dated December 20, 2000,
on our consideration of the City of Schertz, Texas', internal control over financial reporting and our tests of
its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral
part of an audit performed in accordance with Government Auditing Standards and should be read in
conjunction with this report in considering the results of our audit.
433 KITTY HAWK, SUITE 113 • UNIVERSAL CITY, TEXAS 78148 • (210) 658 -6229 • FAX (210) 659 -7611 • www.avacpa.com
Our audit was performed for the purpose of forming an opinion on the general - purpose financial statements
of the City of Schertz, Texas, taken as a whole. The combining and individual fund and account group
financial statements for the year ended September 30, 2000, and supplementary schedules listed in the table
of contents are presented for purposes of additional analysis and are not a required part of the general -
purpose financial statements. Such information has been subjected to the auditing procedures applied in the
audit 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, as listed in the table of contents herein, has been summarized from the City's records
and was not subjected to the auditing procedures applied in the audit of the general - purpose financial
statements of the City of Schertz, Texas. Accordingly, we do not express an opinion on such data.
A rwutr&Yt*, Vaugha vv FT Assorl , P.C.
Armstrong, Vaughan & Assoc., P.C.
December 20, 2000, except as to the fourth paragraph above and Note N, which are as of March 10, 2001.
2
GENERAL PURPOSE FINANCIAL STATEMENTS
CITY OF SCHERTZ, TEXAS
COMBINED BALANCE SHEET - ALL FUND TYPES, ACCOUNT GROUPS
AND DISCRETELY PRESENTED COMPONENT UNITS
SEPTEMBER 30, 2000
Governmental Fund Types Proprietary Fund Types
The accompanying notes are an integral part of these statements.
4
Special
Debt
Capital
Internal
ASSETS & OTHER DEBITS
General
Revenue
Service
Projects Enterprise
Service
Cash and Cash Equivalents
$2,988,694
$ 663,799
$ 184,999
$1,104,573 $ 3,287,811
$ 28,731
Receivables (Net of Allowances)
Taxes
81,041
-
9,086
- -
-
Accounts
233,609
36,419
-
- 773,213
-
Other
-
-
-
- 20,183
-
Due From Other Funds
130,440
11,083
-
- 163,780
-
Due From Component Units
50,695
-
-
- -
-
Inventory at Cost
14,315
-
-
- 88,931
1,414
Prepaid Expenses
47,975
-
-
- 18,306
737
Restricted Assets:
Cash and Cash Equivalents
-
-
-
- 1,927,162
-
Fixed Assets (Net of
Accumulated Depreciation)
-
-
-
- 5,497,802
53,862
Organization Costs (Net of
Accumulated Amortization)
-
-
-
- 477
-
Bond Issue Costs (Net of
Accumulated Amortization)
-
-
-
- 16,255
-
Deferred Loss on Early
Retirement of Debt (Net of
Accumulated Amortization)
-
-
-
- 43,630
-
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 Compensated
Absences and Salary
Reserve
-
-
-
- -
-
TOTAL ASSETS AND
OTHER DEBITS
$3,546,769
$ 711,301
$ 194,085
$1,104,573 $11,837,550
$ 84,744
The accompanying notes are an integral part of these statements.
4
Account Groups
Totals
- 358,548
233,351
$19,617,100 $5,829,958
(Memorandum
$ 719,266 $ 43,645,346
Totals
General
Only)
(Memorandum Only)
General Long -Term
Primary
Component
Reporting Entity
Fixed Assets Debt
Government
Units
2000 1999
$ - $ -
$ 8,258,607
$ 653,586
$ 8,912,193 $ 9,269,782
- -
90,127
-
90,127 100,918
- -
1,043,241
59,656
1,102,897 617,635
- -
20,183
-
20,183 742,798
- -
305,303
-
305,303 976,982
- -
50,695
-
50,695 43,206
- -
104,660
6,024
110,684 125,103
- -
67,018
-
67,018 -
- -
1,927,162
-
1,927,162 1,266,664
19,617,100 -
25,168,764
-
25,168,764 22,593,400
- -
477
-
477 525
- -
16,255
-
16,255 20,006
- -
43,630
-
43,630 53,699
105,019 105,019
- 5,366,391 5,366,391
- 105,019 170,444
-
5,366,391 5,666,786
- 358,548
358,548
- 358,548
233,351
$19,617,100 $5,829,958
$42,926,080
$ 719,266 $ 43,645,346
$ 41,881,299
Continued
5
CITY OF SCHERTZ, TEXAS
COMBINED BALANCE SHEET - ALL FUND TYPES, ACCOUNT GROUPS
AND DISCRETELY PRESENTED COMPONENT UNITS (CONTINUED)
SEPTEMBER 30, 2000
Governmental Fund Types Proprietary Fund Types
LIABILITIES AND EQUITY
AND OTHER CREDITS Special Debt Capital Internal
General Revenue Service Projects Enterprise Service
Liabilities:
Vouchers Payable $
226,350
$ 4,680 $ 225
$ 9,496 $ 466,280
$ 1,212
Notes Payable - Current
-
- -
- 32,106
-
Accrued Salaries and Benefits
57,608
- -
- 23,880
1,066
Bond Escrow
12,500
- -
- -
-
Salary Reserve
-
- -
- 49,229
1,871
Compensated Abscences Payable
-
- -
- 64,409
2,163
Payable from Restricted Assets:
Deposits
-
- -
- 213,655
-
Revenue Bonds
-
- -
- 35,000
-
Certificates of Obligation
-
- -
- 10,000
-
Refunding Bonds
-
- -
- 245,890
-
Public Facility Loan
-
- -
- 5,000
-
Accrued Interest
-
- -
- 11,540
-
Due to Other Funds
95,079
46,691 79,755
8,000 8,256
67,522
Due to Component Units
-
- -
- -
-
Due to Primary Government
-
- -
Deferred Revenue
81,041
- 9,086
- -
-
General Obligation Bonds Payable
-
- -
- -
-
Revenue Bonds Payable
-
- -
- 750,000
-
Certificates of Obligation Payable
-
- -
- 120,000
-
General Obligation Refunding Bonds
-
- -
- 297,700
-
Public Facility Loan
-
- -
- 57,000
-
Note Payable (Less Current Maturities
-
- -
- 34,564
-
Total Liabilities
472,578
51,371 89,066
17,496 2,424,509
73,834
Fund Equity and Other Credits:
Contributed Capital
-
- -
- 3,915,525
63,577
Investment in General Fixed Assets
-
- -
-
-
Retained Earnings (Deficit)
Reserved for Revenue Bond
Retirement
-
- -
- 374,586
-
Reserved for Equipment Replaceme
-
- -
- 40,000
-
Reserved for Contingencies
-
- -
- 972,500
-
Unreserved
-
- -
- 4,110,430
(52,667)
Fund Balances (Deficit)
Reserved for Forfeited Property
19,814
- -
- -
'
Reserved for Inventory
14,315
- -
- -
-
Reserved for Municipal Court
24,103
- -
-
Unreserved - Designated for:
Capital Improvement
-
- -
1,087,077 -
-
General Fund Projects
2,269,593
- -
- -
-
Special Revenues
-
659,930 -
- -
-
Component Units
-
- -
Undesignated
746,366
- 105,019
- -
-
Total Fund Equity (Deficit)
3,074,191
659,930 105,019
1,087,077 9,413,041
10,910
and Other Credits
TOTAL LIABILITIES, FUND
EQUITY AND OTHER CREDIT $3,546,769
$ 711,301 $ 194,085
$1,104,573 $ 11,837,550
$ 84,744
The accompanying notes are an integral part of these statements.
6
- - 1,087,077
Totals
2,077,276
- - 2,269,593
- 2,269,593
Account Groups
(Memorandum
- 659,930
Totals
- - -
General
Only)
- - 851,385
(Memorandum Only)
General Long -Term
Primary
Component
Reporting Entity
Fixed Assets Debt
Government
Units
2000
1999
$ - $ -
$ 708,243
$ 37
$ 708,280 $
1,422,005
- -
32,106
-
32,106
29,821
- -
82,554
-
82,554
65,756
- -
12,500
-
12,500
-
- 122,724
173,824
-
173,824
65,756
- 235,824
302,396
-
302,396
251,901
- -
213,655
-
213,655
166,597
- -
35,000
-
35,000
35,000
- -
10,000
-
10,000
10,000
- -
245,890
-
245,890
198,314
- -
5,000
-
5,000
5,000
- -
11,540
-
11,540
14,764
- -
305,303
-
305,303
976,982
- -
-
-
-
10,606
- -
-
50,695
50,695
32,600
- -
90,127
-
90,127
100,918
- 5,125,000
5,125,000
-
5,125,000
5,354,000
- -
750,000
-
750,000
785,000
- 150,000
270,000
-
270,000
345,000
- 196,410
494,110
-
494,110
811,686
- -
57,000
-
57,000
62,000
- -
34,564
-
34,564
66,671
- 5,829,958
8,958,812
50,732
9,009,544
10,810,377
- -
3,979,102
-
3,979,102
4,117,208
19,617,100 -
19,617,100
-
19,617,100
16,802,163
- -
374,586
-
374,586
412,488
- -
40,000
-
40,000
40,000
- -
972,500
-
972,500
-
- -
4,057,763
-
4,057,763
3,924,376
- -
19,814
-
19,814
19,814
- -
14,315
6,024
20,339
16,252
- -
24,103
-
24,103
-
- - 1,087,077
- 1,087,077
2,077,276
- - 2,269,593
- 2,269,593
271,237
- - 659,930
- 659,930
533,291
- - -
662,510 662,510
350,909
- - 851,385
- 851,385
2,505,908
19,617,100 - 33,967,268
668,534 34,635,802
31,070,922
$19,617,100 $ 5,829,958 $42,926,080 $ 7191266 $ 4356451346 $ 41,881,299
7
CITY OF SCHERTZ, TEXAS
COMBINED STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES -
ALL GOVERNMENTAL FUND TYPES AND DISCRETELY PRESENTED COMPONENT UNITS
FOR THE YEAR ENDED SEPTEMBER 30, 2000
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1999)
REVENUES
Taxes
Licenses and Permits
Charges for Services
Fines and Forfeits
Grants
Other Revenue
TOTAL REVENUES
EXPENDITURES
Current:
General Government
Public Safety
Streets and Parks
Health
Culture and Recreation
Management Services
Capital Outlay
Debt Service:
Principal Retirement
Interst and Fiscal Charges
TOTAL EXPENDITURES
Excess (Deficiency) of Revenues
Over (Under) Expenditures
OTHER FINANCING SOURCES (USES)
Operating Transfers In
Operating Transfers (Out)
Operating Transfers (to) from Primary
Government
Operating Transfers (to) from Component Unit
TOTAL OTHER FINANCING
SOURCES (USES)
Excess (Deficiency) of Revenues &
Other Sources Over (Under)
Expenditures & Other (Uses)
Fund Balances - Beginning
Prior Period Adjustment
Fund Balances - Beginning As Adjusted
Residual Equity Transfers In (Out)
Fund Balances - Ending
Governmental Fund Types
1,083 198,612 -
(199,695) (18,691) - -
10 606 - 388.104 -
(189,089) (17,608) 586,716 -
114 Qnl 126.619 (65.425) (990.199)
2,642,767 533,291 170,444 2,077,276
96,521 - - -
2,739,288 533,291 170,444 2,077,276
$ 3,074,191 $ 659,930 $ 105,019 $ 1,087,077
The accompanying notes are an integral part of these statements.
8
Special
Debt
Capital
General
Revenue
Service
Projects
$ 4,042,025
$ 46,466
$ -
$ -
587,565
143,923
-
-
626,464
-
-
-
435,574
8,757
-
-
17,558
262,468
-
273,185
56,840
15,790
76,885
5,982,371
518,454
15,790
76,885
1,452,638
26,858
-
79,154
2,172,342
277
-
40,305
671,725
121,975
-
-
155,814
-
-
-
253,008
-
-
6,840
83,273
-
-
-
669,579
225,097
-
940,785
-
-
365,820
-
-
-
302,111
-
5,458,379
374,207
667,931
1,067,084
523,992
144,247
(652,141)
(990,199)
1,083 198,612 -
(199,695) (18,691) - -
10 606 - 388.104 -
(189,089) (17,608) 586,716 -
114 Qnl 126.619 (65.425) (990.199)
2,642,767 533,291 170,444 2,077,276
96,521 - - -
2,739,288 533,291 170,444 2,077,276
$ 3,074,191 $ 659,930 $ 105,019 $ 1,087,077
The accompanying notes are an integral part of these statements.
8
Totals
-
1,558,650
(Memorandum
2,212,924
Totals
Only)
2,061,488
(Memorandum Only)
Primary
Component
Reporting Entity
Government
Units
2000 1999
$ 4,088,491
$ 679,161
$ 4,767,652 $ 4,292,518
731,488
-
731,488 680,316
626,464
-
626,464 558,904
444,331
-
444,331 379,584
280,026
-
280,026 783,582
422,700
38,927
461,627 523,954
6.593.500
71 R_ORR
7311 _SRR 7 ?1 R RSR
1,558,650
-
1,558,650
1,307,488
2,212,924
-
2,212,924
2,061,488
793,700
-
793,700
806,029
155,814
-
155,814
142,287
259,848
4,643
264,491
278,851
83,273
5,856
89,129
288,419
1,835,461
-
1,835,461
4,244,176
365,820
-
365,820
338,770
302,111
-
302,111
326,950
7,567,601
10,499
7,578,100
9,794,458
(974,101)
707,589
(266,512)
(2,575,600)
199,695
-
199,695
-
(218,386)
-
(218,386)
710,806
(686,032)
-
(398,710)
(398,710)
(379,130)
398,710
-
398,710
379,130
380,019
(398,710)
(18,691)
24,774
(594,082)
308,879
(285,203)
(2,550,826)
5,423,778
350,909
5,774,687
8,219,494
96,521
8,746
105,267
169,858
5,520,299
359,655
5,879,954
8,389,352
-
-
-
(63,839)
$ 4,926,217 $
668,534 $
5,594,751
$ 5,774,687
0
CITY OF SCHERTZ, TEXAS
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - GENERAL, SPECIAL REVENUE, AND DEBT SERVICE FUND TYPES
FOR THE YEAR ENDED SEPTEMBER 30, 2000
Fund Balances - October 1, 1999 2,642,767
Prior Period Adjustment 96,521
Fund Balances - September 30, 2000 $ 3,074,191
The accompanying notes are an integral part of these statements.
10
General Fund
Variance
Favorable
Budget
Actual
(Unfavorable)
REVENUES
Taxes
$ 3,886,247
$ 4,042,025
$ 155,778
Licenses and Permits
574,165
587,565
13,400
Charges for Services
625,466
626,464
998
Fines and Forfeits
380,000
435,574
55,574
Grants
14,800
17,558
2,758
Other Revenue
276,575
273,185
(3,390)
TOTAL REVENUES
5,757,253
5,982,371
225,118
EXPENDITURES
Current:
General Government
1,696,516
1,452,638
243,878
Public Safety
2,292,186
2,172,342
119,844
Streets and Parks
707,254
671,725
35,529
Health
175,979
155,814
20,165
Culture and Recreation
255,729
253,008
2,721
Management Services
88,376
83,273
5,103
Capital Outlay
449,398
669,579
(220,181)
Debt Service:
Principal Retirement
-
-
-
Interest and Fiscal Charges
-
-
-
TOTAL EXPENDITURES
5,665,438
5,458,379
207,059
Excess (Deficiency) of Revenues
Over (Under) Expenditures
91,815
523,992
432,177
OTHER FINANCING SOURCES (USES)
Operating Transfers In (Out)
(191,805)
(199,695)
(7,890)
Operating Transfers In (Out) from Component Units
-
10,606
10,606
TOTAL OTHER FINANCING SOURCES (USES)
(191,805)
(189,089)
2,716
Excess (Deficiency) of Revenues and Other
Sources Over (Under) Expenditures and
Other (Uses)
$ (99,990)
334,903
$ 434,893
Fund Balances - October 1, 1999 2,642,767
Prior Period Adjustment 96,521
Fund Balances - September 30, 2000 $ 3,074,191
The accompanying notes are an integral part of these statements.
10
$ 492,594
11
$ 105,019
Annually Budgeted
Special Revenue Funds
Debt Service Funds
Variance
Variance
Favorable
Favorable
Budget
Actual (Unfavorable)
Budget
Actual
(Unfavorable)
$ 26,000
$ 36,466 $
10,466
$ -
$ _
$ _
30,000
143,923
113,923
15,600
46,953
31,353
-
15,790
15,790
71,600
227,342
155,742
-
15,790
15,790
26,000
24,734
1,266
-
_
_
4,200
108
4,092
45,000
46,228
(1,228)
-
_
_
-
-
-
365,820
365,820
-
-
-
-
299,665
302,111
(2,446)
75,200
71,070
4,130
665,485
667,931
(2,446)
(3,600)
156,272
159,872
(665,485)
(652,141)
13,344
(1,500)
(18,691)
(17,191)
191,805
198,612
6,807
-
-
-
388,105
388,104
(1)
(1,500)
(18,691)
(17,191)
579,910
586,716
6,806
$ (5,100)
137,581 $
142,681
$ (85,575)
(65,425)
$ 20,150
355,013
I �n_aa4
$ 492,594
11
$ 105,019
CITY OF SCHERTZ, TEXAS
COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS -
ALL PROPRIETARY FUND TYPES
FOR THE YEAR ENDED SEPTEMBER 30, 2000
(With Comparative Totals for the Year Ended September 30, 1999)
OPERATING REVENUES
Fees Charged to Users
Reimbursements and Other
TOTAL OPERATING REVENUES
OPERATING EXPENSES BEFORE DEPRECIATION
Personnel Services
Sewage Treatment
General and Administrative
Contractual Services
Supplies /Maintenance
Bad Debts
TOTAL OPERATING EXPENSES
Operating Income (Loss) before
Depreciation and Amortization
Depreciation and Amortization
Operating Income (Loss)
NONOPERATING REVENUES (EXPENSES)
Interest Income
Interest Expense
TOTAL NONOPERATING
REVENUES (EXPENSES)
Net Income (Loss) Before Operating Transfers
Operating Transfers In (Out)
Net Income (Loss)
Add Back of Depreciation Closed to Contributed Capital
Total
Retained Earnings (Deficit) - October 1
Prior Period Adjustment
Retained Earnings (Deficit) - October 1 As Adjusted
Total
Transfers of Equity
Retained Earnings (Deficit) - September 30
1,275,661
59,592
Totals
-
Enterprise
Internal
(Memorandum Only)
Funds
Service
2000
1999
$ 4,545,439
$ 119,669
$ 4,665,108 $
3,952,044
297,858
-
297,858
203,569
4,843,297
119,669
4,962,966
4,155,613
1,275,661
59,592
820,724
-
362,956
-
833,446
15,686
268,981
28,647
32,412
-
3,594,180
103,925
1,335,253 1,379,783
820,724
550,647
362,956
274,806
849,132
494,026
297,628
375,655
32,412
1 ene I na
45,462
4 l )A '2-Al
1,249,1 17
15,744
1,264,861
1,035,234
519,341
2,818
522,159
522,155
729,776
12,926
742,702
513,079
271,680
818
272,498
191,000
(104,012)
-
(104,012)
(120,483)
167,668
818
168,486
70,517
897,444
13,744
911,188
583,596
18,691
-
18;691
(24,774)
916,135
13,744
929,879
558,822
138,106
-
138,106
138,106
1,054,241
13,744
1,067,985
696,928
4,443,275
(66,411)
4,376,864
3,785,955
-
_
-
(169,858)
4,443,275
(66,411)
4,376,864
3,616,097
5,497,516
(52,667)
5,444,849
4,313,025
- - 63,839
$ 5,497,516 $ (52,667) $ 5,444,849 $ 4,376,864
The accompanying notes are an integral part of these statements.
12
CITY OF SCHERTZ, TEXAS
COMBINED STATEMENT OF CASH FLOWS - ALL PROPRIETARY FUND TYPES
FOR THE YEAR ENDED SEPTEMBER 30, 2000
(With Comparative Totals for the Year Ended September 30, 1999)
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash Received From Customers
Cash Payments to Suppliers for Goods
and Services
Cash Payments to Employees for Services
Cash Received For Reimbursements and
Other
Net Cash Provided (Used) by Operating
Activities
CASH FLOWS FROM NON - CAPITAL
FINANCING ACTIVITIES
Operating Transfers in (Out)
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Acquisition and Construction of Capital
Assets
Principal Payments on Long -Tenn Debt
Interest Paid on Long -Tenn Debt
Capital (Advanced) Received from Joint Venture
Capital Received (Contributed) for
Capital Assets
Net Cash Provided (Used) by Capital
and Related Financing Activities
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on Investments
NET INCREASE (DECREASE) IN CASH
Cash and Cash Equivalents at October 1
Cash and Cash Equivalents at September 30
Cash Compromised of:
Current Assets
Restricted Assets
Cash and Cash Equivalents - End of Year
Enterprise Internal
Funds Service
Totals
(Memorandum Only)
2000 1999
$ 4,351,861 $ 119,669 $ 4,471,530 $ 3,898,865
(1,959,916)
(47,582) (2,007,498)
(2,095,419)
(1,236,780)
(59,359) (1,296,139)
(1,332,896)
297,858
- 297,858
203,569
1,453,023
12,728 1,465,751
674,119
4,139,733
$ 5,214,972 $
18,691
- 18,691
(24,774)
(262,955)
(5,765) (268,720)
(503,203)
(278,002)
(278,002)
(276,929)
(107,236)
- (107,236)
(123,064)
742,798
742,798
(742,798)
- 63,839
94,605 (5,765) 88,840 (1,582,155)
271,680
818
272,498
191,000
1,837,999
7,781
1,845,780
(741,810)
3,376,973
20,950
3,397,923
4,139,733
$ 5,214,972 $
28,731
$ 5,243,703
$ 3,397,923
$ 3,287,810 $
28,731
$ 3,316,541
$ 2,131,259
1,927,162
-
1,927,162
1,266,664
$ 5,214,972 $
28,731
$ 5,243,703
$ 3,397,923
Continued
The accompanying notes are an integral part of these statements.
13
CITY OF SCHERTZ, TEXAS
COMBINED STATEMENT OF CASH FLOWS - ALL PROPRIETARY FUND TYPES (CONTINUED)
FOR THE YEAR ENDED SEPTEMBER 30, 2000
(With Comparative Totals for the Year Ended September 30, 1999)
RECONCILIATION OF OPERATING INCOME 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
Depreciation Attributed to Contributed Capital
Provision for Uncollectible Accounts
(Increase) Decrease in the Following Assets
Accounts Receivable
Inventory
Prepaid Expenses
Due from Other Funds
Increase (Decrease) in the Following Liabilities:
Vouchers Payable
Due to Other Funds
Accrued Vacation
Accrued Salaries
Salary Reserve
Customer Deposit
Net Cash Provided (Used) by Operating Activities
$ 1,453,023 $ 12,728 $ 1,465,751 $ 674,119
The accompanying notes are an integral part of these statements.
14
Totals
Enterprise
Internal
(Memorandum
Only)
Funds
Service
2000
1999
729,776
12,926
742,702
513,079
381,235
2,818
384,053
384,049
138,106
-
138,106
138,106
32,391
-
32,391
2,620
(338,331)
-
(338,331)
(10,335)
18,506
-
18,506
8,494
(18,306)
(737)
(19,043)
-
444,058
-
444,058
(444,903)
252,876
1,212
254,088
(54,507)
(273,227)
(3,724)
(276,951)
132,196
2,442
(978)
1,464
8,491
5,545
203
5,748
19,198
30,894
1,008
31,902
19,198
47,058
-
47,058
(41,567)
$ 1,453,023 $ 12,728 $ 1,465,751 $ 674,119
The accompanying notes are an integral part of these statements.
14
NOTES TO FINANCIAL STATEMENTS
15
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2000
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the City of Schertz, Texas, 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 government accounting and
financial reporting principles. The more significant of the government's accounting policies are described
below.
REPORTING ENTITY
In evaluating how to define the government, 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 GASB Statement 14, "The Financial Reporting
Entity ". The definition of the reporting entity is based primarily on the concept of financial
accountability. A primary government is financially accountable for the organizations that make up
its legal entity. It is also financially accountable for legally separate organizations if its officials
appoint a voting majority of an organization's governing body and either it is able to impose its will
on that organization or there is a potential for the organization to provide specific financial benefits
to, or to impose specific financial burdens on, the primary government.
Individual Component Unit Disclosures
Discretely presented component units. The component units columns in the combined
financial statements include the financial data of the component units of the City of Schertz.
Following is a summary of the component units:
Schertz Economic Development Corporation: A non profit corporation
incorporated under the Development Corporation Act of 1979, Texas Revised Civil
Statutes Annotated, Article 5.90.6, Section 4A. The Corporation is organized
exclusively for the purpose of promoting economic development in order to
eliminate unemployment and underemployment and to promote and encourage
employment and public welfare of, for, and on behalf of the City. The Board of
Directors consists of seven (7) members appointed by the City Council.
2. Library: The library's governing board is appointed by the City Council. The
library provides services to the citizens of the City of Schertz as well as surrounding
communities. The function of the Library Board is to work cooperatively with city
management to provide funding and oversight for special projects of the Library.
Schertz Development Foundation: The Foundation was incorporated under the
Texas Non - profit Corporation Act to assist the City in developing and
implementing plans for economic viability for the City. The Board of Directors is
appointed by the City Council and the executive director is employed by the City.
Complete financial statements for each of the three component units may be obtained at City Hall.
The following pages present condensed financial statements for each of the discretely presented
component units.
lime
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL S"TA"TEMENTS (CONTINUED)
SEPTEMBER 30, 2000
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
1. REPORTING ENTITY (Continued)
CONDENSED BALANCE SHEET
Schertz
Economic Schertz
Development The Development
Corporation Library Foundation Total
ASSETS
Current Assets
TOTAL ASSETS
LIABILITIES
Current Liabilities
Due to Primary Government
TOTAL LIABILITIES
EQUITY
Fund Balance
TOTAL LIABILITIES AND
$ 587,638 $ 35,362 $ 96,266 $ 719,266
$ 587,638 $ 35,362 $ 96,266 $ 719,266
$ - $ 37 $
40,089
547,549
10,643
- $ 37
50,732
24,719 96,266 668,534
EQUITY $ 587,638 $ 35,362 $ 96,266 $ 719,266
CONDENSED STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
Revenues
$ 696,527
$ 6,469
$ 15,092
$ 718,088
Expenditures
(788)
(4,643)
(5,068)
(10,499)
Excess of Revenues Over
(Under) Expenditures
695,739
1,826
10,024
707,589
Transfers to Primary Government
(388,104)
(10,606)
-
(398,710)
Excess (Deficiency) of Revenues
and Other Sources Over (Under)
Expenditures and Other (Uses)
307,635
(8,780)
10,024
308,879
Fund Balance - Beginning
239,914
33,499
77,496
350,909
Prior Period Adjustment
-
-
8,746
8,746
Fund Balance - Ending
$ 547,549
$ 24,719
$ 96,266
$ 668,534
17
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2000
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
1. REPORTING ENTITY (Continued)
Joint Venture
A joint venture is a legally separate entity that results from a contractual arrangement and that is
owned, operated, or governed by two or more participating governments. The following entity
meets the criteria for joint ventures:
Schertz /Seguin Local Government Corporation: The Corporation is a public, nonprofit
corporation organized to aid, assist, and act on behalf of the cities of Schertz and Seguin in
acquiring, constructing, maintaining, and operating a water utility system. The participating
governments have an ongoing financial responsibility to fund the operation of the corporation
through either purchase of services or by subsidizing the operations. Separate financial statements
for the Schertz /Seguin Local Government Corporation may be obtained from the City of Seguin,
P.O. Box 591, Seguin, Texas 78156. Summarized financial data for the joint venture has been
provided in Note K.
2. FUND ACCOUNTING
The City's accounts are organized on the basis of funds and account groups, each of which is
considered to be a separate accounting entity. The operations of each fund are accounted for by
providing a separate set of self - balancing accounts which are comprised of each funds' assets,
liabilities, fund equity, revenues, and expenditures or expenses as appropriate. Governmental
resources are allocated to and accounted for in individual funds based upon the purpose for which
they are to be spent and the means by which spending activities are controlled. The various funds
are grouped, in the financial statements in this report, into six generic fund types and three broad
fund categories as follows:
Governmental Fund Types:
General Fund-
The General Fund accounts for the resources used to finance the fundamental operations of the
City. It is the basic fund of the City and covers all activities for which a separate fund has not
been established.
Special Revenue Funds:
These funds are used to account for specific revenue sources which are legally restricted to
expenditures for specified activities.
Debt Service Funds:
These funds are used to account for the accumulation of resources for and the payment of
principal and interest on general long -term debt of the City other than Revenue Bonds.
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2000
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
2. FUND ACCOUNTING (Continued)
Governmental Fund Types (Continued):
Capital Projects Funds:
These funds are established to account for major capital expenditures not financed by
proprietary or nonexpendable trust funds.
Proprietary Fund Type:
Enterprise Fund:
The Enterprise Fund accounts for operations which are intended to be self - supporting through
user charges. The City operates water and sewer services on this basis.
Internal Service Funds:
Internal service funds account for operations that provide services to other departments or
agencies of the government, or to other governments, on a cost - reimbursement basis.
Account Groups:
The accounting and reporting treatment applied to the fixed assets and long -term liabilities
associated with a fund are determined by its measurement focus. All governmental fund types are
accounted for on a spending "financial flow" measurement focus. This means that only current
assets and current liabilities are generally included on their balance sheets. Their reported fund
balance (net current assets) is considered a measure of "available spendable resources."
Governmental fund operating statements present increases (revenues and other financing sources)
and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are
said to present a summary of sources and uses of "available spendable resources" during a period.
Property, plant, and equipment used in governmental fund type operations are accounted for in the
General Fixed Assets Account Group, rather than in governmental funds.
Long -term liabilities expected to be financed from governmental fund types are accounted for in the
General Long -Term Debt Account Group, not in the governmental fund.
The two account groups are not "funds ". They are concerned only with the measurement of
financial position. They are not involved with measurement or results of operations.
Wt
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2000
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
3. BASIS OF ACCOUNTING
Governmental Funds (General, Special Revenue, Debt Service and Capital Projects) are accounted
for on a modified accrual basis using a current financial resources measurement focus. Revenues
are recognized in the period in which they are both measurable and available and expenditures are
recognized when incurred except for interest on general long -term debt which is recognized when
due. Sales and property taxes are considered "measurable" when in the hands of intermediary
collecting governments and are recognized as revenue at that time. Other revenues susceptible to
accrual are franchise taxes, interest, and charges for services. Licenses, fines, and permits are not
susceptible to accrual because generally they are not measurable until received in cash.
Proprietary Funds have an economic resources measurement focus and use the full accrual method
of accounting for both revenues and expenses similar to a commercial enterprise. The City has
elected not to follow any pronouncements issued by the Financial Accounting Standards Board
(FASB) subsequent to November 30, 1989.
4. CASH AND CASH EQUIVALENTS
Cash and cash equivalents include amounts in demand deposits, interest bearing accounts and
deposits in local government investment pools. The City is allowed to invest in (1) obligations of
the United States or its agencies and instrumentalities; (2) direct obligations of the State of Texas or
its agencies; (3) other obligations, the principal of and interest on which are unconditionally
guaranteed or insured by the State of Texas of the United States; (4) obligations of states, agencies,
counties, cities, and other political subdivisions of any state having been rated as to investment
quality by a nationally recognized investment rating firm and having received a rating of not less
than "AA" or its equivalent; (5) certificates of deposit issued by state and national banks domiciled
in Texas that are guaranteed or insured by the Federal Deposit Insurance Corporation (FDIC) or its
successor, or secured by obligations mentioned above; and (6) fully collateralized direct repurchase
agreements having a defined termination date. In addition the City invests in local government
investment pools.
For purposes of the statement of cash flows, the Enterprise Funds and Internal Service Fund
considers all highly liquid investments including cash in banks, cash on hand, money market
accounts, deposits in local government investment pools, and restricted cash and temporary
investments to be cash equivalents.
5. PROPERTY TAXES
Property taxes are levied on January 1 of each year on all taxable property within the City. The
taxes become due and payable on October 1 following the levy date and delinquent on February 1 of
the subsequent year. Penalties and interest are added for payments made after the February 1 due
date. The City contracts with the Guadalupe County Tax Assessor - Collector for the billing and
collection of the property taxes. Taxes receivable are shown net of the related allowance for
uncollectible taxes of $5,311.
20
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2000
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
5. PROPERTY TAXES (Continued)
For fiscal year 2000, the assessed tax rate for the City was $345572 per $100 on an assessed
valuation of $636,157,284. This is broken out as $315125 for general maintenance and operations
and $.030447 for debt retirement.
6. ACCOUNTS RECEIVABLE
Accounts receivable are reported net of allowances for uncollectible accounts. The allowance
account represents management's estimate of uncollectible accounts based upon experience and
historical trends.
7. INVENTORIES AND PREPAID ITEMS
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.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded
as prepaid items.
8. 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 convenants. 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.
9. FIXED ASSETS
Fixed assets are recorded at cost or estimated historical cost if purchased or constructed. Donated
fixed assets are recorded at their estimated fair value at the date of donation.
Costs incurred for the purchase or construction of general fixed assets are recorded as capital outlay
expenditures in the General, Special Revenue, and Capital Projects Funds. All such costs are
capitalized in the General Fixed Assets Account Group. Public domain, ( "infrastructure ") general
fixed assets consisting of certain improvements other than buildings, including roads, curbs, gutters,
streets, and sidewalks, drainage systems, and lighting systems are capitalized.
Amounts expended for property, plant, and equipment in the Enterprise Fund are capitalized in the
fixed asset accounts within that fund. Interest incurred during the construction phase of proprietary
fund fixed assets is reflected in the capitalized value of the asset constructed, net of interest earned
on the invested proceeds over the same period.
21
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2000
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
10. DEPRECIATION
Depreciation and amortization are provided for in the Enterprise Fund in amounts sufficient to relate
the cost of fixed assets to operations over their estimated service lives using the straight -line
method. Estimated useful lives for Enterprise Fund fixed assets are as follows:
Useful Lives
Fixed Asset (Years)
Buildings 30
Water and sewer lines and mains 50
Equipment 5 -10
No depreciation is provided for the general fixed assets of the City.
11. SALARY RESERVE
It is the policy of the City of Schertz to retain as a liability the first forty (40) hours of service for
each employee. The liability is to be paid upon termination at the rate of pay in existence at that
time. Amounts of salary reserve 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. Salary reserve of proprietary funds is recorded as an expense and
liability of those funds as the benefits accrue to employees
12. COMPENSATED ABSENCES
Vested or accumulated vacation leave and compensatory time that is expected to be liquidated with
expendable available resources is reported as an expenditure and fund liability of the governmental
fund that will pay for it. Amounts of vested or accumulated vacation leave and compensatory time
that are not expected to be liquidated with expendable available financial resources are reported in
the General Long -Term Debt Account Group. Vested or accumulated vacation leave and
compensatory time of the Proprietary Funds is recorded as an expense and liability of that fund as
the benefits accrue to employees. Accumulated vacation pay and compensatory time at September
30, 2000, of $64,409, $2,163 and $235,824 has been recorded in accrued liabilities of the Enterprise
Fund, Internal Service Fund, and General Long -Term Debt Account Group, respectively.
No liability is recorded for nonvesting accumulating rights to receive sick pay benefits.
13. DEFERRED REVENUE
Property tax revenues, are recognized when they become available. Available means when due, or
past due, and receivable within the current period and collected within the current period or
expected to be collected soon enough thereafter to be used to pay liabilities of the current period.
The City recognizes property tax revenues collected within sixty (60) days after year end.
22
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2000
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
14. SHORT -TERM OBLIGATION
Short-term debt, debt of less than a year duration, is recognized as a liability of the governmental
fund that incurred the obligation when the intent is to liquidate the obligation from expendable
available resources.
15. LONG -TERM OBLIGATION
Long -term debt is recognized as a liability of a governmental fund when due, or when resources
have been accumulated in the debt service fund for payment early in the following year. For other
long -term obligations, only that portion expected to be financed from expendable available financial
resources is reported as a fund liability of a governmental fund. The remaining portion of such
obligations is reported in the general long -term debt account group. Long -term liabilities expected
to be financed from proprietary fund operations are accounted for in those funds.
16. DEBT SERVICE
The ad valorem tax rate is allocated each year between the General Fund and the Debt Service Fund.
The full amount estimated to be required for debt service on General Obligation Debt is provided by
the debt service tax, together with interest earned within the Debt Service Fund.
17. REVENUE RECOGNITION
Water and sewer revenues are based on cycle billings rendered to customers on a monthly basis.
Unbilled water and sewer utility service receivables are recorded at year end and are included in
customer receivables.
18. FUND EQUITY
The unreserved fund balances for governmental funds represent the amount available for budgeting
future operations. The reserved fund balances for governmental funds represent the amount that has
been legally identified for specific purposes. Designations of fund balance represent tentative
management plans that are subject to change. Unreserved retained earnings for the proprietary fund
represents the net assets available for future operations or distribution. Reserved retained earnings
for the proprietary fund represents the net assets that have been legally identified for specific
purposes. The proprietary fund's contributed capital represents equity acquired through capital
grants and capital contributions from developers, customers, or other funds.
19. BOND DISCOUNTS /ISSUANCE COSTS
In governmental fund types, bond discounts and issuance costs are recognized in the current period.
Bond discounts and issuance costs for proprietary fund types are deferred and amortized over the
term of the bonds using the bonds - outstanding method, which approximates the effective interest
method. Bond discounts are presented as a reduction of the face amount of bonds payable whereas
issuance costs are recorded as deferred charges.
23
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2000
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
20. COMPARATIVE DATA
Comparative total data for the prior year have been presented in selected sections of the
accompanying financial statements in order to provide an understanding of the changes in the City's
financial position and operations.
21. 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.
22. BUDGETS
An operating budget is adopted each fiscal year for the general fund, hotel /motel tax (special
revenue) fund, park (special revenue) fund, recycling (special revenue) fund and debt service fund.
Annual budgets are not legally required for the other special revenue funds. For capital projects
funds, total estimated revenues and other financing sources and estimated expenditures are approved
at the inception of each project. Accordingly, no comparison of budget to actual is presented in the
annual financial statements for these funds. In addition, as part of the overall budget process,
budgets are adopted for the proprietary funds, however, the City does not require a reporting as part
of the comprehensive annual financial report. The budget is adopted on the same basis of
accounting as described in note A 3. Budgetary preparation and control is exercised at the
departmental level. The City Manager is authorized to transfer budget amounts between line items
within a department; however, any transfer or supplemental appropriation that amends the total
expenditures of a department or total budget requires City Council approval. During the year, the
City made various departmental and line item transfers to the budget for the general fund; which had
the following effect:
General Fund:
Revenues
Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Total
Original Final
Budget Amended Net
10/1/99 Budget Change
$ 5,565,666 $ 5,757,253 $ 191,587
5,473,861 5,665,438 191,577
$ 91,805
24
$ 91,815 $ 10
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2000
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
22. BUDGETS (Continued)
All appropriations lapse at the end of each year. Encumbrances represent commitments related to
unperformed contracts for goods or services. Encumbrance accounting, under which purchase
orders, contracts and other commitments for the expenditures of resources are recorded to reserve
that portion of the applicable appropriation, is utilized in the governmental funds. Encumbrances
lapse at year end and do not constitute expenditures or liabilities because the commitments must be
reappropriated and honored during the subsequent year.
23. TOTAL COLUMNS
Total columns on these 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. Such data is not comparable to a consolidation, as interfund
eliminations have not been made in the aggregation of this information.
24. USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the reporting period. Actual
results could differ from those estimates.
NOTE B - DEPOSITS WITH FINANCIAL INSTITUTIONS
Deposits consist of demand deposit accounts and interest - bearing accounts and are carried at cost.
There are three categories of credit risk that apply to the government's bank balance:
1. Insured or collateralized with securities held by the City or by the City's agent in the City's
name.
2. Collateralized with securities held by the pledging financial institution's trust department or the
City's agent in the City's name.
3. Uncollateralized.
25
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2000
NOTE B -- DEPOSITS WITH FINANCIAL INSTITUTIONS (Continued)
CASH AND CASH EQUIVALENTS
Balances held in each category as follows:
Insured (FDIC)
Unisured:
Collateral held by City's Agent
in City's Name
Total Cash in Banks
The book balance is made up as follows:
Petty Cash
Cash in Banks
Total Collaterlized /Insured Deposits
Deposits with Local Government
Investment Pools
Total
Primary Government
Book Bank
Balance Balance
$ 124,215 $ 124,215 $
Component Units
Book Bank
Balance Balance
1,481,839 1,829,877 307,740 327,009
$ 1,606,054 $ 1,954,092 $ 307,740 $ 327,009
The City held deposits in the following local government investment pools:
Primary Component
Government Units
$ 320 $ -
1,606,054 307,740
1,606,374 307,740
Q cIn lnc '2nc ono
�y iv,av✓,i vi W v ✓✓, ✓vv
Primary Component
Government Units
Local Government Investment Cooperative (LOGIC) $ 3,074,781 $ 88,319
MBIA Municipal Investors Service Corporation 483,683 257,527
Lone Star Investment Pool 5,020,931 -
Total $ 8,579,395 $ 345,846
All three investment pools have regulatory oversight from the Texas Public Funds Investment Act Sec.
2256.0016. The fair value of the City's position in each pool is the same as the value of the pool shares.
The City is authorized to make direct investments in U.S. Government, federal agency and instrumentality
obligations, certificates of deposit, and local government investment pools. Investments represented by
specific identifiable investment securities are classified as to credit risk by the three (3) categories described
below:
26
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2000
NOTE B -- DEPOSITS WITH FINANCIAL INSTITUTIONS (Continued)
Category 1 - Insured, or registered, or securities held by the City or its agent in the City's name.
Category 2 - Uninsured and unregistered, with securities held by the counterparty's trust department or
agent in the City's name.
Category 3 - Uninsured or unregistered, with securities held by the counterparty, or by its trust
department or agent, but not in the City's name.
As of September 30, 2000, no securities were held that would be subject to credit risk as defined above.
NOTE C -- CHANGES IN FIXED ASSETS
Activity for general fixed assets capitalized by the City is summarized below:
Balance Balance
10/1/1999 Adjustments Additions Deletions 9/30/2000
Land
$ 997,173
$ - $ 472,688 $
(4,480) $ 1,465,381
Buildings
4,216,586
- 1,383,360
- 5,599,946
Improvements
Other Than Buildings
8,555,316
- 1,224,315
- 9,779,631
Vehicles
1,394,066
(531,255) -
- -
Equipment
1,639,022
267,321 20,619
(17,631) 1,909,331
$ 16,802,163
$ (263,934) $ 3,100,982 $
(22,111) $ 19,617,100
Adjustments were made to the beginning fixed asset balances to reflect changes in capitalization policies,
disposition of assets in previous years, and re- classifications.
The following is a summary of the Enterprise Fund property plant, and equipment at September 30, 2000:
Enterprise Internal
Land and Improvements
Buildings
Improvements Other than Buildings
Machinery, Equipment, and Vehicles
Less Accumulated Depreciation
Net Property, Plant, and Equipment
$ 160,521 $ - $
195,724 26,656
10,964,007 7,642
1,020,300 625,108
12,340,552 659,406
27
- $ 160,521
58,804 281,184
1,142 10,972,791
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2000
NOTE D -- LONG -TERM DEBT
The City had the following changes in long -term debt outstanding for the year ended September 30, 2000:
Balance Balance
Outstanding Outstanding
Original Interest October 1, September 30.
Amount Rates 1999 Issued Retired 2000
General Long -Term Debt
General Obligation Bonds
1962 Series
1987 Series
1992 Series
1998 Series
1995 Refunding Bonds
Certificates of Obligation
1990 Series
Total General Obligation Debt
$ 301,000
3.63%
$ 24,000 $
454,000
6.2 -8.3%
45,000
620,000
5.2 -7.2%
495,000
4,930,000
4.37 - 5.375%
4,790,000
447,000
3.75 -5.00%
268,230
5,622,230
Compensated Absences Payable
Salary Reserve
Total General Long -Term Debt
Proprietary Fund Debt
Revenue Bonds:
1987 Series
Certificate of Obligation:
1992 Series
General Obligation Bonds:
1995 Refunding Bonds
Other Debt:
Public Facility Loan (HUD)
Note Payable
Total Proprietary Fund Debt
850,000 7.0 -9.0% 215,000
5,837,230
$ 14,000 $ 10,000
- 45,000
-
- 25,000
470,000
- 145,000
4,645,000
- 71,820
196,410
300,820
5,321,410
65,000 150,000
365,820 5,471,410
186,793 49,031 - 235,824
46,558 76,166 - 122,724
$ 6,070,581 $ 125,197 $ 365,820 $ 5,829,958
1,020,000 6.3 -8.3% $ 820,000 $ - $ 35,000 $ 785,000
200,000 5.0 -7.0% 140,000 - 10,000 130,000
1,253,000 3.75 -5.0 741,770 - 198,180 543,590
142,000 5.00% 67,000 - 5,000 62,000
273,000 7.60% 96,491 - 29,821 66,670
$ 1,865,261 $ - $ 278,001 $ 1,587,260
28
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2000
NOTE D -- LONG -TERM DEBT (Continued)
Debt Service Requirements
The following are summaries of debt service requirements to maturity for long -term bonds, certificates, and
notes for the General Long -Term and Proprietary Fund Debt:
SUMMARY OF DEBT SERVICE REQUIREMENTS TO MATURITY
FOR GENERAL LONG -TERM DEBT
Year Ending
September 30,
Principal
Interest
Total
2001
$ 343,680
$ 278,461
$ 622,141
2002
297,610
258,524
556,134
2003
254,260
241,959
496,219
2004
257,930
226,349
484,279
2005
272,930
210,064
482,994
2006
305,000
193,566
498,566
2007
315,000
171,928
486,928
2008
300,000
151,394
451,394
2009
240,000
133,933
373,933
2010
255,000
120,673
375,673
2011
270,000
109,156
379,156
2012
285,000
97,006
382,006
2013
300,000
84,209
384,209
2014
315,000
70,766
385,766
2015
335,000
56,547
391,547
2016
355,000
41,453
396,453
2017
375,000
25,484
400,484
2018
395,000
8,641
403,641
$ 5,471,410
$ 2,480,113
$ 7,951,523
Average annual requirements
$ 441,751
29
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2000
NOTE D -- LONG -TERM DEBT (Continued)
SUMMARY OF DEBT SERVICE REQUIREMENTS TO MATURITY
FOR PROPRIETARY FUND DEBT
Year Ending
September 30,
Principal
Interest
Total
2001
$ 328,426
$ 91,502
$ 419,928
2002
286,954
78,490
365,444
2003
270,740
58,168
328,908
2004
207,070
42,156
249,226
2005
207,070
29,652
236,722
2006
130,000
18,975
148,975
2007
130,000
10,163
140,163
2008
5,000
1,350
6,350
2009
5,000
1,100
6,100
2010
5,000
850
5,850
2011
5,000
600
5,600
2012
5,000
350
5,350
2013
2,000
100
2,100
$ 1,587,260
$ 333,456
$ 1,920,716
Average annual requirements
$ 147,747
Bonded debt of the City consists of various series of general obligation bonds, revenue bonds, certificates of
obligation, public facility loan (HUD), and a note payable. General obligation bonds are direct obligations
of the City for which its full faith and credit are pledged, and are payable from taxes levied on all taxable
property located within the City. Revenue bonds are generally payable from pledged revenues generated by
the water and sewer fund. The debenture agreement for water and sewer bonds require funds be available
for 1 /12th the principal and 1 /6th 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
operations of the water and sewer systems and has equal status with first lien revenue bonds. The note
payable is payable from revenues generated by the water and sewer fund.
The City is mandated to maintain revenue reserves at least 1.5 times the average annual revenue bond debt
service requirements. The City was in compliance.
As of September 30, 2000, outstanding general obligation bonds of $740,000 are considered to be defeased.
These are analyzed by fund types as follows:
Water and Sewer Fund
General Long -Term Debt Group
30
$ 543,590
196,410
$ 740,000
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2000
NOTE E -- RETIREMENT PLAN
Texas Municipal Retirement Fund:
Plan Description
The City provides pension benefits for all of its full -time employees through a nontraditional, joint
contributory, hybrid defined benefit plan in the state -wide Texas Municipal Retirement System (TMRS),
one of over 731 administered by TMRS, an agent multiple- employer public employee retirement system.
TMRS issues a publicly available financial report that includes financial statements and required
supplementary information for TMRS. That report may be obtained by writing to Texas Municipal
Retirement System, P.O. Box 149153, Austin, Texas 78714.
Benefits depend upon the sum of the employee's contributions to the plan, with interest, and the City -
financed monetary credits, with interest. At the date the plan began, the City granted monetary credits for
service rendered before the plan began of a theoretical amount equal to two times what would have been
contributed by the employee, with interest, prior to establishment of the plan. Monetary credits for service
since the plan began are a percent (100 %, 150 %, or 200 %) of the employee's accumulated contributions. In
addition, the City can grant, as often as annually, another type of monetary credit referred to as an updated
service credit which is a theoretical amount which, when added to the employee's accumulated
contributions and the monetary credits for service since the plan began, would be the total monetary credits
and employee contributions accumulated with interest if the current employee contribution rate and City
matching percent had always been in existence and if the employee's salary had always been the average of
his salary in the last three years that are one year before the effective date. At retirement, the benefit is
calculated as if the sum of the employee's accumulated contributions with interest and the employer -
financed monetary credits with interest were used to purchase an annuity.
Members can retire at age 60 and above with 10 or more years of service or with 25 years of service,
regardless of age. A member is vested after 10 years. The plan provisions are adopted by the governing
body of the City, within the options available in the state statutes governing TMRS and within the actuarial
constraints also in the statutes.
Contributions
The contribution rate for the employees is 5 %, and the City matching percent is currently 1.5 to 1, both as
adopted by the governing body of the City. Under the State law governing TMRS, the City contribution rate
is annually determined by the actuary. This rate consists of the normal cost contribution rate and the prior
service contribution rate, both of which are calculated to be a level percent of payroll from year to year. The
normal cost contribution rate finances the currently accruing monetary credits due to the City matching
percent, which are the obligation of the City as of an employee's retirement date, not at the time the
employee's contributions are made. The normal cost contribution rate is the actuarially determined percent
of payroll necessary to satisfy the obligation of the City to each employee at the time his /her retirement
becomes effective. The prior service contribution rate amortizes the unfunded (overfunded) actuarial
liability (asset) over the remainder of the plan's 25 -year amortization period. The unit credit actuarial cost
method is used for determining the City contribution rate. Contributions are made monthly by both the
employees and the City. Since the City needs to know its contribution rate in advance to budget for it, there
is a one -year delay between the actuarial valuation that is the basis for the rate and the calendar year when
the rate goes into effect (i.e., December 31, 1999 valuation is effective for rates beginning January 2001).
31
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2000
NOTE E -- RETIREMENT PLAN (Continued)
Texas Municipal Retirement Fund: (Continued)
Contributions (Continued)
For 1999, the City's annual pension cost of $252,975 was equal to the City's required and actual
contributions. The actuarial assumptions included (a) 8% investment rate of return, (b) no projected salary
increases, (c) no inflation component and (d) the amortization period is open. The actuarial value of TMRS
assets was determined based on market - related values.
Schedule of Actuarial Liabilities and Funding Progresi
Actuarial Valuation Date
Actuarial Value of Assets
Actuarial Accrued Liability
Percentage Funded
Unfunded (Overfunded) Actuarial Accrued
Liability (UAAL)
Annual Covered Payroll
UAAL as a Percentage of Covered Payroll
Net Pension Obligation (NPO) at the
Beginning of Period
Annual Pension Cost:
Annual Required Contribution (ARC)
Interest on NPO
Adjustment to the ARC
Contributions Made
Increase in NPO
NPO at the End of Period
Trend Information
The six year historical trend information is being developed prospectively. The information for the last six
years is as follows:
ACTUARIAL VALUATION DATE
DECEMBER 31,
1999 1998 1997 1996 1995 1994
Net Assets Available for Benefits
as a Percentage of the Pension
Benefit Obligation
Unfunded Pension Benefit Obligation
as a Percentage of Covered Payroll
Employer Contributions as a Percentage
of Covered Payroll
56.40% 53.26% 55.94% 50.75% 47.05% 36.51%
40.10% 36.03% 28.08% 25.09% 30.97% 30.18%
7.55% 7.20% 5.28% 5.46% 5.09% 4.97%
32
12/31/99
12/31/98
12/31/97
$
1,734,692
$
2,434,873
$
951,784
$
3,076,611
$
1,296,918
$
1,701,471
56.4%
53.3%
55.9%
$
1,341,919
$
1,137,955
$
749,687
$
3,349,515
$
3,158,499
$
2,669,695
40.1%
36.0%
28.1%
$
252,975
$
227,548
$
140,886
$
140,886
$
227,548
$
252,975
Trend Information
The six year historical trend information is being developed prospectively. The information for the last six
years is as follows:
ACTUARIAL VALUATION DATE
DECEMBER 31,
1999 1998 1997 1996 1995 1994
Net Assets Available for Benefits
as a Percentage of the Pension
Benefit Obligation
Unfunded Pension Benefit Obligation
as a Percentage of Covered Payroll
Employer Contributions as a Percentage
of Covered Payroll
56.40% 53.26% 55.94% 50.75% 47.05% 36.51%
40.10% 36.03% 28.08% 25.09% 30.97% 30.18%
7.55% 7.20% 5.28% 5.46% 5.09% 4.97%
32
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2000
NOTE F -- INTERFUND RECEIVABLES AND PAYABLES
Interfund balances as of September 30, 2000 consisted of the following receivables and payables:
Due From Due To
General Fund
Special Revenue Funds:
Library Grant Fund
$ 8,000 $
-
Police Department Forfeitures
-
1,083
Tax Increment Financing
-
10,000
Debt Service Fund
38,662
-
Capital Projects Funds
8,000
-
Proprietary Funds:
Water and Sewer Enterprise Fund
-
83,996
Safes Enterprise Fund
8,256
-
Fleet Services Internal Service Fund
67,522
-
130,440
95,079
Special Revenue Funds
Tax Increment Financing:
General
10,000
-
Library Grant Fund:
General
-
8,000
Police Department Forfeitures:
General
1,083
-
Recycling Fund:
Water and Sewer Enterprise Fund
-
18,691
1998 FEMA
Water and Sewer Enterprise Fund
-
20,000
11,083
46,691
Debt Service Fund
General Fund
-
38,662
Water and Sewer Enterprise Fund
-
41,093
-
79,755
Capital Projects Fund
General Fund
-
8,000
Enterprise Fund
Water and Sewer Enterprise Fund
General
83,996
-
Recycling (Special Revenues) Fund
18,691
-
1998 FEMA (Special Revenue) Fund
20,000
-
Debt Service Fund
41,093
-
Safes Enterprise Fund
General
-
8,256
163,780
8,256
Internal Service Fund
General
-
67,522
TOTAL INTERFUND RECEIVABLES
AND PAYABLES
$ 305,303 $
305,303
33
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2000
NOTE F -- INTERFUND RECEIVABLES AND PAYABLES (Continued)
Due From Due To
General Fund
Schertz Economic Development Corp
Library
Schertz Economic Development Corp
General Fund
Library
General Fund
TOTALS
NOTE G -- OPERATING TRANSFERS
Primary Government
$ 40,089 $ -
10,606 -
- 40,089
- 10,606
$ 50,695 $ 50,695
Transfers Transfers
General Fund
$
-
$
199,695
Special Revenue Funds:
Sewer
Safes
Service
Police Department Forfeiture Fund
Fund
1,083
Fund
-
Recycling Fund
$ (138,106)
-
$ -
18,691
Debt Service Fund
3,826,862
198,612
63,577
-
Proprietary Funds:
Water and Sewer Enterprise Fund
$ 3,688,756
18,691
$ 63,577
-
TOTALS
$
218,386
$
218,386
Primary Government and Component Unit
General Fund
$
10,606
$
-
Debt Service Fund
388,104
-
Library
-
10,606
Schertz Economic Development Corporation
-
388,104
TOTALS
$
398,710
$
398,710
NOTE H -- CONTRIBUTED CAPITAL
Changes to contributed capital during the year are as follows:
34
Water And
Internal
Sewer
Safes
Service
Fund
Fund
Fund
Total
Depreciation of Contributed Assets
$ (138,106)
$ -
$ -
$ (138,106)
Contributed Capital - October 1
3,826,862
226,769
63,577
$ 4,117,208
CONTRIBUTED CAPITAL -
SEPTEMBER 30
$ 3,688,756
$ 226,769
$ 63,577
$ 3,979,102
34
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2000
NOTE I -- SEGMENT INFORMATION — ENTERPRISE FUNDS
The City has two (2) enterprise operations which provide water /sewer and emergency ambulance services.
Segment information for the twelve month period ended September 30, 2000, is as follows:
Operating Revenues
Operating Expenses, Exclusive of Depreciation
and Amoritzation
Depreciation and Amortization
Operating Income
Other Income (Expense)
Operating Transfers In (Out)
Net Income
Total Assets
Total Equity
Working Capital
Additions to Fixed Assets
Outstanding Debt
NOTE J -- RISK MANAGEMENT
Water /Sewer Safes Total
$ 3,958,054 $ 885,243 $ 4,843,297
(2,717,774)
(876,406)
(3,594,180)
(480,922)
(38,419)
(519,341)
759,358
(29,582)
729,776
156,461
11,207
167,668
18,691
-
18,691
$ 934,510
$ (18,375)
$ 916,135
$ 11,186,676 $ 650,874 $ 11,837,550
$ 8,837,112 $ 575,929 $ 9,413,041
$
3,364,012
$ 344,052
$
3,708,064
$
201,486
$ 61,469
$
262,955
$
1,587,260
$ -
$
1,587,260
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets;
errors and omissions; injuries to employees; and natural disasters. The City contracts with the Texas
municipal League Intergovernmental Risk Pool, a public entity risk pool currently operating as a common
risk management and insurance program providing insurance coverage in the following areas: general
liability, automobile liability and physical damage, law enforcement liability, workers compensation, real
and personal property, mobile equipment, and errors and omissions liability. The agreement for formation
of the Texas Municipal League Intergovernmental Risk pool provides that the pool will be self - sustaining
through member premiums and will be adjusted annually through an experience modifier.
The City continues to carry commercial insurance for all other risks of loss including public official bond,
employee dishonesty blanket bond, and underground tank pollution liability. Settled claims resulting from
these risks have not exceeded commercial insurance coverage in any of the past three (3) fiscal years.
The pooling agreement requires the pool to be self - sustaining. It is not possible to estimate the amount of
any losses for which the City might be liable. The Texas Municipal League Intergovern mental Risk Pool
has published its own financial report for the year ended September 30, 2000, which can be obtained from
the Texas Municipal League.
35
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2000
NOTE J -- RISK MANAGEMENT (CONT.)
Vehicles owned by the City that are older than four (4) years are covered by liability insurance only. The
City has elected to supplement this coverage by designating $350,000 of general fund equity in the event it
is needed. To date no claims have been made on this reserve and none exists as of September 30, 2000.
NOTE K -- COMMITMENTS AND CONTINGENCIES
Schertz /Seguin Local Government Corporation
The City of Schertz is jointly liable, together with the City of Seguin, for operating deficits and long -term
debt of the Schertz /Seguin Local Government Corporation (See Note Al). Following is a summary of
financial data as reported in the Corporation's audited financial statements dated September 30, 2000:
ASSETS:
Current Assets
$ 3,612,244
Restricted Cash and Equivalents
525,720
Projects in Progress
1,809,604
Land
3,539,631
Other Assets
963,902
TOTAL ASSETS
$ 10,451,101
LIABILITIES & RETAINED EARNINGS
Current Liabilities
$ 520,431
Bonds Payable
10,000,000
TOTAL LIABILITIES
10,520,431
Retained Earnings (Deficit)
TOTAL LIABILITIES &
RETAINED EARNINGS
(69,330)
$ 10,451,101
The Corporation issued $10,000,000 in revenue bonds for the purpose of developing an alternate water
system. The bonds are backed by the revenues derived from existing water systems of the Cities of Schertz
and Seguin.
Contracts
The City has entered into construction contracts for the purpose of city hall renovations in the amount of
$315,636 (including contracted architectural fees). As of September 30, 2000, the City had incurred
$274,361 of the total contracts, with an estimated future commitment of $41,275.
Litigation
The City is the subject of various claims and litigation that have arisen in the course of its operations.
Management is of the opinion that the City's liability in these cars, if decided adversely to the City, will not
have a material effect on the City's financial position.
36
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2000
NOTE L - PRIOR PERIOD ADJUSTMENT
Primary Government
In the financial statements for the year ended September 30, 1999, an error was made in accounting for sales
tax revenue and receivables in the general fund. Sales tax receivable in the amount of $96,521 was not
recorded in the proper period. The error has been corrected and has had the following effect on the
beginning fund balance:
Beginning fund balance (as previously reported) $ 2,642,767
Adjustment of sales tax revenue /receivable 96,521
Beginning fund balance (as corrected) $ 2,739,288
Component Unit
In the financial statements for the year ended September 30, 1999 an error was made in accounting for
inventory of land held for sale in the Schertz Development Foundation. Land purchased by the Foundation
for the purpose of industrial development is held for sale at reduced prices to entice manufactures and other
employers to locate in Schertz, Texas. The error has been corrected and has had the following effect on the
beginning fund balance:
Beginning fund balance (as previously reported)
Adjustment of land inventory
Beginning fund balance (as corrected)
NOTE M -- DEFICIT RETAINED EARNINGS
$ 77,496
8,746
$ 86,242
For the year ended September 30, 2000, the Internal Service Fund has a deficit retained earnings balance of
$52,667. The deficit has occurred over several years as a result of insufficient transfers from user funds to
meet expenses of the fleet services provided by the Internal Service Fund. The City plans to adjust transfers
from other funds to offset deficits.
NOTE N -- SUBSEQUENT DISCOVERY OF FACTS
Subsequent to the issuance of the City of Schertz, Texas' general - purpose financial statements, management
became aware of certain errors resulting in an overstatement of accounts payable and current expenditures in
the Capital Projects Fund. The error occurred because the payments for contracted construction were
properly accrued at September 30, 1999, but were subsequently recorded as current expenditures in 2000.
The correction of the error in the revised financial statements has the effect of decreasing current liabilities
in the Capital Projects Fund by $1,035,262 at September 30, 2000, and increasing the fund balance for 2000
by $1,035,262.
37
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COMBINING AND INDIVIDUAL FUND AND ACCOUNT GROUP
FINANCIAL STATEMENTS AND SCHEDULES
38
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GENERALFUND
The General Fund accounts for the resources used to finance the fundamental operations of the City. It is
the basic fund of the City and covers all activities for which a separate fund has not been established.
39
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CITY OF SCHERTZ, TEXAS
GENERALFUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 2000 AND 1999
ASSETS
Cash and Cash Equivalents
Delinquent Taxes Receivable (Net of Allowances of $4,750)
Accounts Receivable
Due from Other Funds
Due from Component Unit
Inventory of Supplies, at Cost
Prepaid Items
TOTAL ASSETS
LIABILITIES AND FUND BALANCE
Liabilities
Vouchers Payable
Accrued Salaries and Benefits
Bond Escrow
Due to Other Funds
Deferred Revenue
Total Liabilities
Fund Balance
Reserved for Forfeited Property
Reserved for Inventory of Supplies
Reserved for Municipal Court
Unreserved:
Designated for Economic Development
Designated for Equipment Replacement
Designated for Self- Insurance
Designated for A/C Replacement
Designated for Street Repair
Designated for Vehicle Replacement
Designated for Contingencies
Designated for Police Building
Undesignated
Total Fund Balance
TOTAL LIABILITIES AND FUND BALANCE
40
September 30,
2000 1999
$ 2,988,694 $ 3,040,504
81,041
90,241
233,609
81,921
130,440
-
50,695
32,600
14,315
16,252
47,975 -
$ 3,546,769 $ 3,261,518
226,350
57,608
12,500
95,079
81,041
A l'7 C70
19,814
14,315
24,103
18,821
231,472
350,000
70,000
178,655
1,420,000
645
746,366
4 W7A 101
$ 80,728
46,558
401,224
90,241
618,751
19,814
16,252
18,821
16,144
45,000
121,710
69,562
$ 3,546,769 $ 3,261,518
CITY OF SCHERTZ, TEXAS
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
YEAR ENDED SEPTEMBER 30, 2000
(WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1999)
REVENUES
Taxes
Licenses and Permits
Charges for Services
Fines and Forfeits
Grants
Other Revenue
TOTAL REVENUES
EXPENDITURES
Current
General Government
Public Safety
Streets and Parks
Health
Culture and Recreation
Management Services
Capital Outlay
Debt Service
TOTAL EXPENDITURES
Excess (Deficiency) of Revenues
Over (Under) Expenditures
OTHER FINANCING
SOURCES (USES)
Operating Transfers In
Operating Transfers (Out)
Operating Tansfers (to) from
Component Unit
TOTAL OTHER FINANCING
SOURCES (USES)
Excess (Deficiency) of Revenues
and Other Sources Over (Under)
Expenditures and Other (Uses)
Fund Balance - October 1
Prior Period Adjustment
Fund Balance - September 30
2000
Variance
Favorable
Budget Actual (Unfavorable)
$ 3,886,247
$ 4,042,025
$ 155,778
574,165
587,565
13,400
625,466
626,464
998
380,000
435,574
55,574
14,800
17,558
2,758
276,575
273,185
(3,390)
5,757,253
5,982,371
225,118
1000
Aohinl
$ 3,565,950
680,316
558,904
369,255
470,100
7n7 R27
1,696,516
1,452,638
243,878
1,306,500
2,292,186
2,172,342
119,844
2,023,379
707,254
671,725
35,529
472,408
175,979
155,814
20,165
142,287
255,729
253,008
2,721
274,865
88,376
83,273
5,103
85,845
449,398
669,579
(220,181)
922,721
-
-
-
3,109
5,665,438
5,458,379
207,059
5,231,114
01 R 1 5
G71 007
A V) 177
(,7 1 7d2
- 4,800
(191,805) (199,695) (7,890) (681,232)
- 10,606 10,606 (13,059)
(191,805) (189,089) 2,716 (689,491)
$ (99,990) 334,903 $ 434,893 (68,248)
2,642,767 2,711,015
96,521 -
$ 3,074,191 $ 2,642,767
41
CITY OF SCHERTZ, TEXAS
GENERALFUND
SCHEDULE OF REVENUES COMPARED TO BUDGET
YEAR ENDED SEPTEMBER 30, 2000
(WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1999)
42
Variance
Favorable
REVENUES
Budget
Actual
(Unfavorable)
Actual
Taxes:
Ad Valorem
$ 2,205,972
$ 2,187,164
$ (18,808)
$ 1,932,632
Tax Penalty
24,100
26,244
2,144
30,673
City Sales Tax
1,200,000
1,361,537
161,537
1,219,983
Utility Franchise
448,475
459,495
11,020
378,341
Other
7,700
7,585
(115)
4,322
Total Taxes
3,886,247
4,042,025
155,778
3,565,951
Licenses and Permits
574,165
587,565
13,400
680,316
Charges for Services:
Utility Administration
362,956
362,956
-
265,000
Swimming Pool
30,350
30,335
(15)
33,942
Animal Shelter
79,000
79,282
282
21,760
Building Rental
12,775
13,217
442
9,299
Library and Fire
133,965
133,965
-
116,686
Other
6,420
6,709
289
112,217
Total Charges for Service
625,466
626,464
998
558,904
Fines and Forfeitures
380,000
435,574
55,574
369,255
Grants
14,800
17,558
2,758
470,100
Other Revenue:
Reimbursements
17,500
17,402
(98)
10,582
Proceeds from Litigation
30,000
30,217
217
-
Cibolo Creek Municipal Authority
6,200
6,169
(31)
5,954
Interest
200,000
199,990
(10)
152,561
Sale of Merchandise
600
588
(12)
25,497
Miscellaneous
22,275
18,819
(3,456)
13,238
Total Other Revenue
276,575
273,185
(3,390)
207,832
TOTAL REVENUES
$ 5,757,253
$ 5,982,371
$ 225,118
$ 5,852,358
42
CITY OF SCHERTZ, TEXAS
GENERAL FUND
SCHEDULE OF CURRENT EXPENDITURES COMPARED TO BUDGET
YEAR ENDED SEPTEMBER 30, 2000
(WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1999)
2000 1999
W
Variance
Favorable
Budget
Actual
(Unfavorable)
Actual
CURRENT
General Government
City Council
$ 18,800
$ 15,144
$ 3,656
$ 14,345
City Manager
229,284
228,752
532
137,187
Business Office
216,525
217,362
(837)
105,319
Planning and Zoning
137,548
132,319
5,229
128,939
Legal
99,000
82,990
16,010
100,266
Municipal Court
178,921
148,575
30,346
149,430
Municipal Building
179,550
182,055
(2,505)
174,332
General Administration
88,936
78,217
10,719
91,563
Finance
151,932
130,643
21,289
157,265
Other - Unclassified
396,020
236,581
159,439
247,854
Total General Government
1,696,516
1,452,638
243,878
1,306,500
Public Safety
Police Department
1,473,804
1,373,654
100,150
1,290,320
Fire Department
657,421
644,210
13,211
591,026
Inspection
160,961
154,478
6,483
142,033
Total Public Safety
2,292,186
2,172,342
119,844
2,023,379
Streets and Parks
Streets
587,613
571,690
15,923
372,134
Parks
119,641
100,035
19,606
100,274
Total Streets and Parks
707,254
671,725
35,529
472,408
Health
Animal Control
175,979
155,814
20,165
142,287
Culture and Recreation
Swimming Pool
65,915
65,702
213
66,325
Library
189,814
187,306
2,508
208,540
Total Culture and Recreation
255,729
253,008
2,721
274,865
Management Services
88,376
83,273
5,103
85,845
Capital Outlay
449,398
669,579
(220,181)
922,721
Debt Service
Interest
-
-
-
3,109
Total Expenditures
$ 5,665,438
$ 5,458,379
$ 207,059
$ 5,231,114
W
SPECIAL REVENUE FUNDS
Special Revenue funds account for the proceeds of specific revenues (other than expendable trusts or for
major capital projects) that are legally restricted to expenditure for specified purposes.
Park Fund - to account for revenues from developers' fees (in lieu of park land dedication), grants, and
donations and designed to monitor and manage improvement of park system.
Recycling Fund - to account for revenues received from the recycling fee on all residential water bills and
the sale of recyclable material and used to buy down solid waste collection costs.
Tax Increment Financing Fund — to account for the proceeds of designated property taxes to be used for
the widening of Schertz Parkway.
1998 FEMA Fund — to account for the funds received from the Federal Emergency Management
Association which are used to repair damages incurred in the flood of 1998.
Hotel Occupancy Tax Fund — to account for proceeds of hotel occupancy taxes to be used strictly for those
kinds of programs that promote the tourism industry.
Library Grant Fund — to account for funds from a state grant to be used for purchasing computers at the
library to be used for access to the internet.
Police Department Forfeitures Fund - to account for revenue received from drug related cases in
conjunction with other law enforcement agencies.
..
CITY OF SCHERTZ
COMBINING BALANCE SHEET
SPECIAL REVENUE FUNDS
SEPTEMBER 30, 2000
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1999)
ASSETS
Cash and Cash Equivalents
Accounts Receivable
Due from Other Funds
TOTAL ASSETS
LIABILITIES AND FUND BALANCE
Liabilities
Accounts Payable
Due to Other Funds
Total Liabilities
Fund Balance
Unreserved
Designated
TOTAL LIABILITIES AND
FUND BALANCE
45
Tax
Park Recycling Increment
$ 304,114 $ 50,948 $ 108,273
$ 304,114 $ 50,948 $ 118,273
$ 206 $ 1,677 $ -
206 20,368 -
303,908 30,580 118,273
$ 304,114 $ 50,948 $ 118,273
Police
Hotel Library Department
1998 Occupancy Grant Forfeitures
FEMA Tax Fund Fund
Totals
2000 1999
$ 4,430 $ 158,856 $ 20,447 $ 16,731 $ 6639799 $ 600,235
36,419 - - - 36,419 -
40,849 158,856 20,447 $ 17,814 $ 711,301 $ 689,870
$ 2,047 $ 750 $ - $ - $ 4,680 $ 92,611
20,000 - 8,000 - 46,691 63,968
22,047 750 8,000 - 51,371 156,579
18,802 158,106 12,447 17,814 659,930 533,291
40,849 $ 158,856 $ 20,447 $ 17,814 $ 711,301 $ 689,870
46
CITY OF SCHERTZ
COMBINING STATEMENT OF REVENUE, EXPENDITURES, AND CHANGES IN FUND -
BALANCES, SPECIAL REVENUE FUNDS
SEPTEMBER 30, 2000
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1999)
REVENUES
Other
Taxes
Developer Fees
Property Forfeitures
Grants
Donations
Sale of Recycling Materials
Interest
TOTAL REVENUES
EXPENDITURES
General and Administrative
Streets and Parks
Contractual Services
Capital Outlay
TOTAL EXPENDITURES
Excess (Deficency) of Revenues
Over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers In
Transfers (Out)
Total Expenditures
Excess (Deficency) of Revenues and
Other Sources Over (Under)
Expenditures and Other (Uses)
Fund Balance - October I
Residual Equity Transfer In (Out)
Fund Balances - September 30
47
Tax
Park Recycling Increment
$ - $ - $ 10,000
143,923 - -
30,256 -
0A T7 -
108 - -
- 19,770 1,716
46,228 - -
107,214 10,486 13,496
(18,691) -
(18,691) -
107,214 (8,205) 13,496
196,694 38,785 104,777
$ 303,908 $ 30,580 $ 118,273
Hotel
1998 Occupancy
FEMA Tax
$ - $ 36,466 $
224,841 -
Police
Library Department
Grant Forfeitures Totals
- $ - $ 46,466 $ 105,566
143,923 69,107
- 8,757 8,757 10,329
37,627 - 262,468 313,482
- - - 250
- - 30,256 7,839
$ 228,354
$ 43,536
$ 37,627 $
9,919
$ 518,454
$ 528,184
300
4,964
-
277
5,649
10,159
121,975
-
-
-
121,975
224,488
-
-
-
-
21,486
112,397
149,105
-
26,032
3,732
225,097
179,790
271,380
4,964
26,032
4,009
374,207
526,834
(43,026)
38,572
11,595
5,910
144,247
1,350
-
-
-
1,083
1,083
150,562
-
-
-
-
(18,691)
(4,800)
-
-
-
1,083
(17,608)
145,762
(43,026) 38,572 11,595 6,993 126,639 147,112
61,828 119,534 852 10,821 533,291 450,018
- - - - - (63,839)
$ 18,802 $ 158,106 $ 12,447 $ 17,814 $ 659,930 $ 533,291
.•
CITY OF SCHERTZ, TEXAS
PARK SPECIAL REVENUE FUND
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
YEAR ENDED SEPTEMBER 30, 2000
REVENUES
Developer Fees
Interest Income
TOTAL REVENUES
EXPENDITURES
Contractual Services
Capital Outlay
TOTAL EXPENDITURES
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Fund Balance - October 1, 1999
Fund Balance - September 30, 2000
Budget
$ 30,000
4,000
34,000
4,200
45,000
49,200
$ (15,200)
49
Actual
$ 143,923
9,627
153,550
108
46,228
46,336
107,214
196,694
$ 303,908
Variance
Favorable
(Unfavorable)
$ 113,923
5,627
119,550
4,092
(1,228)
2,864
$ 122,414
CITY OF SCHERTL
RECYCLING SPECIAL REVENUE FUND
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE — BUDGET AND ACTUAL
YEAR ENDED SEPTEMBER 30, 2000
50
Variance
Favorable
Budget
Actual
(Unfavorable)
REVENUES
Sale of Recycling Materials
$ 7,500
$ 30,256
$ 22,756
TOTAL REVENUES
7,500
30,256
22,756
EXPENDITURES
Contractual Services
6,000
19,770
(13,770)
TOTAL EXPENDITURES
6,000
19,770
(13,770)
Excess (Deficiency) of Revenues
Over (Under) Expenditures
1,500
10,486
8,986
OTHER FINANCING SOURCES (USES)
Operating Transfers In (Out)
(1,500)
(18,691)
(17,191)
TOTAL OTHER FINANCING
SOURCES (USES)
(1,500)
(18,691)
(17,191)
Excess (Deficiency) of Revenues
and Other Sources Over (Under)
Expenditures and Other (Uses)
$ -
(8,205)
$ (8,205)
Fund Balance - October 1, 1999
38,785
Fund Balance - September 30, 2000
$ 30,580
50
CITY OF SCHERTZ
HOTEL OCCUPANCY TAX SPECIAL REVENUE FUND
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE — BUDGET AND ACTUAL
YEAR ENDED SEPTEMBER 30, 2000
51
Variance
Favorable
Budget
Actual
(Unfavorable)
REVENUES
Sale of Recycling Materials
$ 26,000
$ 36,466
$ 10,466
Interest Income
4,100
7,070
2,970
TOTAL REVENUES
30,100
43,536
13,436
EXPENDITURES
Contractual Services
24,000
4,964
19,036
TOTAL EXPENDITURES
24,000
4,964
19,036
Excess (Deficiency) of Revenues
Over (Under) Expenditures
$ 6,100
38,572
$ 32,472
Fund Balance - October 1, 1999
119,534
Fund Balance - September 30, 2000
$ 158,106
51
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.
52
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CITY OF SCHERTZ, TEXAS
DEBT SERVICE FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 2000 AND 1999
ASSETS
Cash and Cash Equivalents
Delinquent Taxes Receivable (Net of Allowances)
TOTAL ASSETS
LIABILITIES AND FUND BALANCE
Liabilities
Accounts Payable
Due to Other Funds
Deferred Revenue
Ad Valorem Taxes
Total Liabilities
Fund Balance
Reserved for Debt Service
TOTAL LIABILITIES AND
FUND BALANCE
53
SEPTEMBER 30,
2000 1999
$ 184,999 $ 329,505
9,086 10,677
$ 194,085 $ 340,182
$ 225 $
-
79,755
159,061
9,086
10,677
89,066
169,738
105,019
170,444
$ 194,085 $
340,182
CITY OF SCHERTZ, TEXAS
DEBT SERVICE FUND
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES — BUDGET AND ACTUAL
SEPTEMBER 30, 2000
(WITH COMPARATIVE ACTUAL AMOUNTS FOR 1999)
Variance
Favorable
REVENUES
Interest Income
EXPENDITURES
Debt Service
Bond Principal
Bond Interest
Fiscal Agent Fees
TOTAL EXPENDITURES
Excess (Deficiency) of Revenues
Over (Under) Expenditures
OTHER FINANCING SOURCES
(USES)
Operating Transfers In
Operating Transfers from
Component Unit
TOTAL OTHER FINANCING
SOURCES (USES)
Excess (Deficiency) of Revenues
and Other Sources Over (Under)
Expenditures and Other (Uses)
Fund Balance - October 1
Fund Balance - September 30
1999
$ - $ 15,790 $ 15,790 $ 10,094
365,820
365,820
-
338,770
299,665
299,665
-
321,185
-
2,446
(2,446)
2,656
665,485
667,931
(2,446)
662,611
(665,485)
(652,141)
13,344
(652,517)
191,805
198,612
6,807
258,785
388,105
388,104
(1)
392,189
$ (85,575) (65,425) $ 20,150
54
$ 105,019
(1,543)
$ 170,444
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.)
55
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CITY OF SCIIERT7, TEXAS
CAPITAL PROJECTS FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 2000 AND 1999
601
TOTALS
2000
1999
ASSETS
Cash and Cash Equivalents
$
1,104,573
$
2,833,030
Due from Other Funds
-
279,508
TOTAL ASSETS
$
1,104,573
$
3,112,538
LIABILITIES AND FUND BALANCE
Liabilities
Accounts Payable
$
9,496
$
1,035,262
Due to Other Funds
8,000
-
Total Liabilities
17,496
1,035,262
Fund Balances
Unreserved
Designated
1,087,077
2,077,276
TOTAL LIABILITIES AND FUND BALANCE
$
1,104,573
$
3,112,538
601
CITY OF SCHERTZ, TEXAS
CAPITAL PROJECTS FUND
COMPARATIVE STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
YEAR ENDED SEPTEMBER 30, 2000 AND 1999
REVENUES
Other
Interest Income
TOTAL REVENUES
EXPENDITURES
General and Administrative
Professional and Contractual Services
Capital Outlay
TOTAL EXPENDITURES
Excess (Deficiency) of Revenues
Over (Under) Expenditures
OTHER FINANCING SOURCES
(USES)
Operating Transfers In (Out)
TOTAL OTHER FINANCING
SOURCES (USES)
Excess (Deficiency) of Revenues
and Other Sources Over (Under)
Expenditures and Other (Uses)
Fund Balance - October 1
Prior Period Adjustment
Fund Balance - October 1
As Adjusted
Fund Balance - September 30
57
TOTALS
2000
1999
$ 76,885
$ 191,883
76,885
191,883
$ -
$ 988
126,299
38,109
940,785
3,321,455
1,067,084
3,360,552
(990,199)
(3,168,669)
-
296,659
-
296,659
(990,199)
(2,872,010)
2,077,276
4,779,428
-
169,858
2,077,276
4,949,286
$ 1,087,077 $ 2,077,276
PROPRIETARY FUND TYPE
ENTERPRISE FUNDS
Enterprise Funds are established to account for operations that are financed and operated in a manner similar
to private business enterprises — where the intent of the governing body is that costs (expenses, including
depreciation) of providing goods or services to the general public on a continuing basis be financed or
recovered primarily through user charges. The City operates the Water and Sewer System and the Schertz
Area Facility for Emergency Services (SAFES) on this basis.
WO
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CITY OF SCIIERT7, TEXAS
ENTERPRISE FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 2000
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1999)
Other Assets:
Organizational Costs (Net of
Accumulated Amortization of
$1,423 and $1,375 for 2000 and 1999)
Bond Issuance Costs (Net of
Accumulated Amortization of
$18,755 and $15,004 for 2000 and 1999)
Deferred Loss on Early Retirement
of Debt (Net of Accumulated
Amortization of $50,345 and
$40,276 for 2000 and 1999)
Total Other Assets
TOTAL ASSETS
477
16,255
43,630
60,362
- 477
- 16,255
- 43,630
60,362
525
20,006
53,699
74,230
$ 11,186,676 $ 650,874 $ 11,837,550 $ 11,137,053
Continued
WN
WATER AND
SEWER
TOTALS
SYSTEM
SAFES
2000
1999
ASSETS
Current Assets:
Cash and Cash Equivalents
$ 3,135,472
$ 152,339
$ 3,287,811 $
2,110,309
Accounts Receivable (Net of Allowances
of $7,613 and $41,726 respectively)
536,762
236,451
773,213
487,454
Accounts Receivable - Other
20,183
-
20,183
742,798
Due from Other Funds
163,780
-
163,780
607,839
Inventory of Supplies, at Cost
68,870
20,061
88,931
107,437
Prepaid Expenses
8,160
10,146
18,306
-
Total Current Assets
3,933,227
418,997
4,352,224
4,055,837
Restricted Assets:
Cash and Cash Equivalents
1,927,162
-
1,927,162
1,266,664
Fixed Assets:
Land and Improvements
160,521
-
160,521
160,521
Buildings
195,724
26,656
222,380
222,380
Improvements Other than Buildings
10,964,007
7,642
10,971,649
10,800,124
Machinery, Equipment, and Vehicles
1,020,300
625,108
1,645,408
1,553,978
12,340,552
659,406
12,999,958
12,737,003
Less: Accumulated Depreciation
(7,074,627)
(427,529)
(7,502,156)
6,996,681
Total Fixed Assets
5,265,925
231,877
5,497,802
5,740,322
Other Assets:
Organizational Costs (Net of
Accumulated Amortization of
$1,423 and $1,375 for 2000 and 1999)
Bond Issuance Costs (Net of
Accumulated Amortization of
$18,755 and $15,004 for 2000 and 1999)
Deferred Loss on Early Retirement
of Debt (Net of Accumulated
Amortization of $50,345 and
$40,276 for 2000 and 1999)
Total Other Assets
TOTAL ASSETS
477
16,255
43,630
60,362
- 477
- 16,255
- 43,630
60,362
525
20,006
53,699
74,230
$ 11,186,676 $ 650,874 $ 11,837,550 $ 11,137,053
Continued
WN
CITY OF SCHERTZ, TEXAS
ENTERPRISE FUND
COMBINING BALANCE SHEET (CONTINUED)
SEPTEMBER 30, 2000
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1999)
WATER AND
.1'
SEWER
TOTALS
SYSTEM
SAFES
2000
1999
LIABILITIES AND EQUITY
Current Liabilities:
Vouchers Payable
$ 464,806
$ 1,474
$ 466,280
$ 213,404
Note Payable - Current Maturity
32,106
-
32,106
29,821
Due to Other Funds
-
8,256
8,256
281,483
Accrued Salaries and Benefits
11,300
12,580
23,880
18,335
Salary Reserve
21,859
27,370
49,229
18,335
Compensated Absences Payable
39,144
25,265
64,409
61,967
Total Current Liabilities
569,215
74,945
644,160
623,345
Current Liabilities Payable From
Restricted Assets
Customer Deposits
213,655
-
213,655
166,597
Revenue Bonds
35,000
-
35,000
35,000
Certificates of Obligation
10,000
-
10,000
10,000
Refunding Bonds
245,890
-
245,890
198,314
Public Facility Loan
5,000
-
5,000
5,000
Accrued Interest
11,540
-
11,540
14,764
Total Current Liabilities Payable
From Restricted Assets
521,085
-
521,085
429,675
Noncurrent Liabilities:
Revenue Bonds Payable (Less Current Maturities)
750,000
-
750,000
785,000
Certificate of Obligation Payable
(Less Current Maturities)
120,000
-
120,000
130,000
Refunding Bonds (Less Current Maturities)
297,700
-
297,700
543,456
Public Facility Loan
57,000
-
57,000
62,000
Note Payable (Less Current Maturities)
34,564
-
34,564
66,671
Total Noncurrent Liabilities
1,259,264
-
1,259,264
1,587,127
TOTAL LIABILITIES
2,349,564
74,945
2,424,509
2,640,147
EQUITY
Contributed Capital
3,688,756
226,769
3,915,525
4,053,631
Retained Earnings - Reserved:
Revenue Bond Retirement
374,586
-
374,586
412,488
Equipment Replacement
40,000
-
40,000
40,000
Contingencies
750,000
222,500
972,500
-
Unreserved
3,983,770
126,660
4,110,430
3,990,787
TOTAL EQUITY
8,837,112
575,929
9,413,041
8,496,906
TOTAL LIABILITIES AND EQUITY
$ 11,186,676
$ 650,874
$ 11,837,550
$ 11,137,053
.1'
CITY OF SCHERTZ, TEXAS
ENTERPRISE FUND
COMBINING STATEMENT OF REVENUES, EXPENSES, AND
CHANGES IN RETAINED EARNINGS
YEAR ENDED SEPTEMBER 30, 2000
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1999)
NONOPERATING REVENUES (EXPENSES)
Interest income 260,473 11,207 271,680 190,652
Interest Expenses (104,012) - (104,012) (120,483)
TOTAL NONOPERATING
REVENUE (EXPENSES) 156,461 11,207 167,668 70,169
NET INCOME (LOSS) BEFORE
OPERATING TRANSFERS
WATER AND
(18,375)
897,444
602,785
Operating Transfers In (Out)
SEWER
-
TOTALS
(24,774)
NET INCOME (LOSS)
SYSTEM
SAFES
2000
1999
OPERATING REVENUES
Fees Charged to Users
$ 3,663,091
$ 882,348
$ 4,545,439 $
3,854,059
Reimbursements and Other
294,963
2,895
297,858
203,403
TOTAL OPERATING REVENUE
3,958,054
885,243
4,843,297
4,057,462
OPERATING EXPENSES
-
-
-
(169,858)
Personnel Services
650,310
625,351
1,275,661
1,317,480
Sewage Treatment
820,724
-
820,724
550,647
General and Administrative
355,156
7,800
362,956
272,800
Contractual Services
731,960
101,486
833,446
493,123
Supplies /Maintenance
159,416
109,565
268,981
325,709
Bad Debts
208
32,204
32,412
45,462
TOTAL OPERATING EXPENSES
BEFORE DEPRECIATION
2,717,774
876,406
3,594,180
3,005,221
Operating Income (Loss) Before
Depreciation and Amortization
1,240,280
8,837
1,249,117
1,052,241
Depreciation and Amortization
480,922
38,419
519,341
519,625
OPERATING INCOME (LOSS)
759,358
(29,582)
729,776
532,616
NONOPERATING REVENUES (EXPENSES)
Interest income 260,473 11,207 271,680 190,652
Interest Expenses (104,012) - (104,012) (120,483)
TOTAL NONOPERATING
REVENUE (EXPENSES) 156,461 11,207 167,668 70,169
NET INCOME (LOSS) BEFORE
OPERATING TRANSFERS
915,819
(18,375)
897,444
602,785
Operating Transfers In (Out)
18,691
-
18,691
(24,774)
NET INCOME (LOSS)
934,510
(18,375)
916,135
578,011
Add Back of Depreciation Closed to
Contributed Capital
138,106
-
138,106
138,106
TOTAL
1,072,616
(18,375)
1,054,241
716,117
Retained Earnings - October 1
4,075,740
367,535
4,443,275
3,833,177
Prior Period Adjustment
-
-
-
(169,858)
Retained Earnings - October 1
As Adjusted
4,075,740
367,535
4,443,275
3,663,319
TOTAL
5,148,356
349,160
5,497,516
4,379,436
TRANSFERS OF EQUITY
-
-
-
63,839
Retained Earnings - September 30
$ 5,148,356 $
3491160
$ 5,497,516
$ 4,443,275
61
CITY OF SCHERTZ, TEXAS
ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS - ALL PROPRIETARY FUND TYPES
YEAR ENDED SEPTEMBER 30, 2000
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1999)
CASH FLOWS FROM OPERATING ACTVITIES:
Cash Received From Customers
Cash Payments to Suppliers
for Goods and Services
Cash Payments to Employees for Services
Cash Received From Reimbursements and Other
NET CASH PROVIDED BY (USED Ili
OPERATING ACTIVITIES
CASH FLOWS FROM NONCAPITAL
FINANCING ACTMTIES:
Operating Transfers In (Out) to /from
Other Funds
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Acquisition and Construction of
Capital Assets
Principal Payments on Long -Term Debt
Interest Paid on Long -Term Debt
Capital Advanced to Joint Venture
Capital Contributed for Capital Assets
NET CASH PROVIDED (USED) BY CAPITAL
AND RELATED FINANCING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest on Investments
WATER AND
SEWER
SYSTEM
TOTALS
SAFES 2000 1999
$ 3,554,960 $ 796,901 $ 4,351,861 $ 3,800,880
(1,735,809)
(224,107)
(1,959,916)
(2,063,289)
(635,362)
(601,418)
(1,236,780)
(1,272,949)
294,963
2,895
297,858
203,403
1,478,752
(25,729)
1,453,023
668,045
18,691 - 18,691 (24,774)
(201,486)
(61,469) (262,955)
(503,203)
(278,002)
- (278,002)
(276,929)
(107,236)
- (107,236)
(123,064)
742,798
- 742,798
(742,798)
-
- -
63,839
156,074
(61,469) 94,605
(1,582,155)
260,473
11,207 271,680
190,652
NET INCREASE (DECREASE) IN ACTIVITIES
1,913,990
(75,991)
1,837,999
(748,232)
CASH AND EQUIVALENTS AT BEGINNING OF YEAR:
3,148,643
228,330
3,376,973
4,125,205
CASH AND EQUIVALENTS AT END OF YEAR:
$ 5,062,633
$ 152,339
$ 5,214,972
$ 3,376,973
62
CITY OF SCHERTZ, TEXAS
ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS - ALL PROPRIETARY FUND TYPES (CONTINUED)
YEAR ENDED SEPTEMBER 30, 2000
(WITH COMPARATIVE TOTALS FROM SEPTEMBER 30, 1999)
Comprised of:
Current Assets
Restricted Assets
WATER AND
SEWER
$ 3,135,471
1,927,162
TOTALS
SAFES 2000 1999
$ 152,339 $ 3,287,810 $ 2,110,309
- 1,927,162 1,266,664
CASH AND CASH EQUIVALENTS
END OF YEAR $
5,062,633
$ 152,339
$ 5,214,972
$ 3,376,973
RECONCILIATION OF OPERATING INCOME
TO NET
CASH PROVIDED BY OPERATING INCOME:
Operating Income (Loss) $
759,358
$ (29,582)
$ 729,776
$ 532,616
Adjustments to Reconcile Operating Income to
Net CashProvided (Used) by Operating
Activities
Depreciation/Amortization
342,816
38,419
381,235
381,519
Depreciation Attributed to Contributed
Capital
138,106
-
138,106
138,106
Provision for Uncollectible Accounts
187
32,204
32,391
2,620
(Increase) Decrease in the Following Assets:
Accounts Receivable
(155,375)
(182,956)
(338,331)
(10,335)
Inventory
21,941
(3,435)
18,506
8,123
Prepaid Expenses
(8,160)
(10,146)
(18,306)
-
Due from Other Funds
346,548
97,510
444,058
(444,903)
Increase (Decrease) in the Following Liabilities:
Vouchers Payable
252,808
68
252,876
(54,066)
Due to Other Funds
(281,483)
8,256
(273,227)
111,401
Accrued Vacation
953
1,489
2,442
7,861
Accrued Salaries and Benefits
1,718
3,827
5,545
18,335
Salary Reserve
12,277
18,617
30,894
18,335
Customer Deposits
47,058
-
47,058
(41,567)
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES $ 1,478,752 $ (25,729) $ 1,453,023 $ 668,045
63
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GENERAL FIXED ASSETS
This account group is established to account for the fixed assets owned by the City exclusive of those
relating to Proprietary Fund operations. Expenditure transactions to acquire general fixed assets occur in the
General Fund.
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CITY OF SCHERTZ, TEXAS
COMPARATIVE SCHEDULE OF GENERAL FIXED ASSETS BY SOURCE
YEARS ENDED SEPTEMBER 30, 2000 AND 1999
GENERAL FIXED ASSETS
Land
Buildings
Improvements Other than Buildings
Vehicles
Equipment
TOTALS
INVESTMENT IN GENERAL
FIXED ASSETS BY SOURCE
General Fund
Capital Projects
General Obligation Bonds
Certificates of Obligation
Time Warrants
Contractual Obligations
Grant
Contributed
Special Revenue - Development Foundation
Component Unit
TOTALS
65
SEPTEMBER 30,
2000
$ 1,465,381
5,599,946
9,779,631
862,811
1,909,331
$ 19,617,100
1999
$ 997,173
4,216,586
8,555,316
1,394,066
1,639,022
$ 16,802,163
$ 3,506,087 $ 3,325,592
7,115,735
5,139,688
182,686
182,686
317,005
317,005
113,614
113,614
640,984
640,984
7,724,700
7,066,305
10,504
10,504
5,785
5,785
$ 19,617,100 $ 16,802,163
CITY OF SCHERTZ, TEXAS
SCHEDULE OF GENERAL FIXED ASSETS — BY FUNCTION AND ACTIVITY
YEAR ENDED SEPTEMBER 30, 2000
..
Balance
Balance
October 1,
Adjustments/
September 30,
1999
Transfers
Additions
Deductions
2000
General Government
$ 1,761,869
$ (123,880)
$ 449,398
$ (17,631)
$ 2,069,756
Public Safety
Police
2,075,856
(178,713)
337,152
-
2,234,295
Fire
1,944,664
(321,309)
270,714
-
1,894,069
EMS
844,315
21,084
166,816
-
1,032,215
Inspection
27,210
2,290
-
-
29,500
Streets and Park
Streets
8,228,304
-
1,579,144
-
9,807,448
Pool
543,300
56,700
-
-
600,000
Parks
712,900
139,583
219,239
-
1,071,722
Health
Animal Control
271,915
(46,821)
1,527
-
226,621
Library
378,940
187,132
76,992
-
643,064
Economic Development
Foundation
12,890
-
-
(4,480)
8,410
TOTALS
$ 16,802,163
$ (263,934)
$ 3,100,982
$ (22,111)
$ 19,617,100
..
COMPONENTS TO GENERAL FIXED ASSETS
Improvements
Other Than
Land Buildings Buildings Vehicles Equipment
$ 314,258 $ 1,082,741 $ - $ 55,756 $ 617,001
41,793 1,611,753 - 244,513 336,236
41,793 1,281,141 - 215,981 355,154
41,793 969,338 - - 21,084
- - - 20,460 9,040
304,669 - 8,924,331 245,795 332,653
- - 600,000 - -
656,860 186,472 100,300 49,090 79,000
23,161 106,071 30,000 31,216 36,173
35,030 362,430 125,000 - 120,604
6,024 - - - 2,386
1,465,381 $ 5,599,946 $ 9,779,631 $ 862,811 $ 1,909,331
67
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DISCRETELY PRESENTED COMPONENT UNITS
Discretely presented component units consist of separate entities whose governing bodies are not
substantively the same as the governing body of the primary government. The discretely presented
component units also provide services to areas other than the primary government.
68
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CITY OF SCHERTZ, TEXAS
DISCRETELY PRESENTED COMPONENT UNITS
COMBINING BALANCE SHEET
SEPTEMBER 30, 2000
ASSETS
Cash and Cash Equivalents
Accounts Receivable
Inventory
TOTAL ASSETS
LIABILITIES & FUND
BALANCE
Liabilities
Accounts Payable
Due to Primary Government
Total Liabilities
Fund Balances
Reserved for Inventory
Unreserved Designated
Total Fund Balance
TOTAL LIABILITIES &
FUND BALANCE
Schertz
Economic
Development
Schertz
The Development Totals
Library Foundation 2000
$ 527,982 $ 35,362 $ 90,242 $ 653,586
59,656 - - 59,656
$ 587,638 $ 35,362 $ 96,266 $ 719,266
$ - $ 37 $
40,089 10,606
547,549 24,719
547,549 24,719
- $ 37
50,732
6,024 6,024
96,266 668,534
$ 587,638 $ 35,362 $ 96,266 $ 719,266
m'
CITY OF SCHERTZ, TEXAS
DISCRETELY PRESENTED COMPONENT UNITS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
SEPTEMBER 30, 2000
Schertz
Economic Schertz
Development The Development Totals
Corporation Library Foundation 2000
REVENUES
Taxes $ 679,161 $ - $ - $ 679,161
Other
Net Land Sales - - 10,286 10,286
Donations - 5,451 - 5,451
Interest 17,366 1,018 4,806 231190
TOTAL REVENUES $ 696,527 $ 6,469 $ 15,092 $ 718,088
EXPENDITURES
Current
Culture and Recreation $ - $ 4,643 $ - $ 4,643
Economic Development 788 - 5,068 5,856
Total Expenditures 788 4,643
Excess (Deficiency) of
Revenues Over
Expenditures 695,739 1,826
OTHER FINANCING SOURCES (USES)
Transfers to Primary Government (388,104) (10,606)
Total Other Financing
Sources (Uses) (388,104)
Excess (Deficiency) of
Revenues and Other
Sources Over (Under)
Expenditures and Other
(Uses) 307,635
10,024 707,589
- (398,710)
- (398,710)
(8,780) 10,024 308,879
Fund Balances - October 1 239,914 33,499 77,496 350,909
Prior Period Adjustment - - 8,746 8,746
Fund Balances - September 30 $ 547,549 $ 24,719 $ 96,266 $ 668,534
70
ARMSTRONG, VAUGHAN & ASSOC., P.C.
.................................................................... ...............................
CERTIFIED PUBLIC ACCOUNTANTS
REPORT ON COMPLIANCE AND INTERNAL CONTROL OVER
FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL
STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT A UDITING STANDARDS
The Honorable Mayor and Members of the City Council
City of Schertz, Texas
We have audited the financial statements of the City of Schertz, Texas, as of and for the year ended
September 30, 2000, and have issued our report thereon dated December 20, 2000. We conducted our audit
in accordance with generally accepted auditing standards and the standards applicable to financial audits
contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Compliance
As part of obtaining reasonable assurance about whether the City of Schertz, Texas, general- purpose
financial statements are free of material misstatement, we performed tests of its compliance with certain
provisions of laws, regulations, contracts, and grants, noncompliance with which could have a direct and
material affect on the determination of the financial statement amounts. However, providing an opinion on
compliance with those provisions was not an objective of our audit and, accordingly, we do not express such
an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported
under Government Auditing Standards.
Internal Compliance Over Financial Reporting
In planning and performing our audit, we considered the City of Schertz, Texas, control over financial
reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the
general - purpose financial statements and not to provide assurance on the internal control over financial
reporting. Our consideration of the internal control over financial reporting would not necessarily disclose
all matters in the internal control over financial reporting that might be material weaknesses. A material
weakness is a condition in which the design or operation of one or more of the internal control components
does not reduce to a relatively low level the risk that misstatements in amounts that would be material in
relation to the general purpose financial statements being audited may occur and not be detected within a
timely period by employees in the normal course of performing their assigned functions. We noted no
matters involving the internal control over financial reporting and its operation that we consider to be
material weaknesses. However, we noted other matters involving the internal control over financial
reporting that we have reported to management of the City of Schertz in a separate letter dated December
20, 2000.
71
433 KITTY HAWK, SUITE 113 • UNIVERSAL CITY, TEXAS 78148 • (210) 658 -6229 • FAX (210) 659 -7611 • www.avacps.com
This report is intended for the information and use of management, others within the organization, and City
Council and is not intended to be and should not be used by anyone other than these specified parties.
Arwi4tYQVt*, Vaugha+V fr Asti, P.C.
Armstrong, Vaughan & Assoc., P.C.
December 20, 2000
72
STATISTICAL SECTION
73
CITY OF SCHERTZ, TEXAS
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION
LAST TEN FISCAL YEARS
TABLE 1
Fiscal
General
Public
Streets
Total
Period
Government
Safety
And Parks
Health
Other
Expenditures*
1991
$ 659,815
$ 836,031
$ 342,974
$ 65,816
$ 436,419
$ 2,341,055
1992
689,082
843,582
352,093
66,646
393,138
2,344,541
1993
741,305
924,222
373,213
75,441
479,836
2,594,017
1994
744,801
978,121
308,126
80,494
645,063
2,756,605
1995
813,789
1,059,331
349,659
80,324
633,582
2,936,685
1996
886,090
1,174,371
304,722
85,685
1,510,303
3,961,171
1997
976,032
1,472,534
397,807
102,293
798,071
3,746,737
1998
1,063,835
1,702,684
408,461
127,065
1,165,475
4,467,520
1999
1,306,500
2,023,379
806,029
142,287
2,142,364
6,420,559
2000
1,479,496
2,172,619
793,700
155,814
1,898,888
6,500,517
* Includes General, Special Revenue, and Debt Service Funds.
74
CITY OF SCHERTZ, TEXAS
GENERAL GOVERNMENTAL REVENUES BY SOURCE
LAST TEN FISCAL YEARS
TABLE 2
*Includes General, Special Revenue, and Debt Service Funds.
(1) 1999 Revenues have been revised to reflect the prior period adjustment
detailed in Note L.
75
Charges
Fiscal
Licenses and
for
Fines and
Period
Taxes
Permits
Services
Forfeits
Other
Total
1991
$ 1,746,053
$ 43,826
$ 276,508
$ 201,512
$ 156,737
$ 2,424,636
1992
1,811,941
53,316
326,184
221,856
113,261
2,526,558
1993
1,895,333
173,310
327,434
196,200
112,248
2,704,525
1994
2,109,202
145,229
343,731
195,964
195,320
2,989,446
1995
2,285,735
134,391
353,050
209,719
340,232
3,323,127
1996
2,389,765
394,841
375,767
317,403
244,638
3,722,414
1997
2,698,175
546,159
452,890
331,244
242,905
4,271,373
1998
3,168,926
610,943
472,366
343,943
654,095
5,250,273
1999
3,768,037
680,316
558,904
379,584
1,100,315
6,487,156 (�)
2000
4,088,491
731,488
626,464
444,331
625,841
6,516,615
*Includes General, Special Revenue, and Debt Service Funds.
(1) 1999 Revenues have been revised to reflect the prior period adjustment
detailed in Note L.
75
CITY OF SCHERTZ, TEXAS
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
TABLE 3
76
Percent of
Total
Fiscal
Total
Current Tax
Current Levy
Delinquent
Tax
Year
Tax Levy
Collections
Collected
Collections
Collections
September 30, 1991
$ 1,005,598
$ 975,352
97.0%
$ 37,972
$ 1,013,324
September 30, 1992
1,042,914
1,014,564
97.0%
19,995
1,034,559
September 30, 1993
1,102,209
1,083,800
98.3%
17,037
1,100,837
September 30, 1994
1,212,063
1,192,569
98.4%
14,634
1,207,203
September 30, 1995
1,337,010
1,290,283
96.5%
13,280
1,303,563
September 30, 1996
1,360,548
1,342,990
98.7%
13,194
1,356,184
September 30, 1997
1,408,699
1,384,497
98.3%
18,639
1,403,136
September 30, 1998
1,600,008
1,565,295
97.8%
18,922
1,584,217
September 30, 1999
1,892,640
1,869,557
98.8%
42,720
1,912,277
September 30, 2000
2,198,381
2,153,542
98.0%
43,622
2,197,164
76
Ratio of Total
Ratio of
Tax Collections
Outstanding
Delinquent
to Total
Delinquent
Taxes to Total
Tax Levy
Taxes
Tax Levy
101.0%
$ 78,396
7.8%
99.0%
84,843
8.1%
99.9%
85,876
7.8%
99.6%
71,161
5.9%
97.5%
81,404
6.1%
99.7%
89,860
6.6%
99.6%
97,394
6.9%
99.0%
111,856
7.0%
102.3%
106,230
5.6%
99.9%
95,438
4.3%
77
Levy
Year
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
CITY OF SCHERTZ, TEXAS
ASSESSED AND TAXABLE VALUE OF PROPERTY
LAST TEN FISCAL YEARS
Fiscal
Year
Ended
09 -30 -91
09 -30 -92
09 -30 -93
09 -30 -94
09 -30 -95
09 -30 -96
09 -30 -97
09 -30 -98
09 -30 -99
09 -30 -00
Estimated
Actual
Values
$340,903,727
269,351,284
256,861,608
264,286,116
362,247,758
346,130,091
369,917,233
452,163,752
545,742,286
636,157,284
Assessment Assessed
Percentage Valuations
W.
100% $272,593,690
100% 268,170,123
100% 259,038,486
100% 258,766,426
100% 312,676,505
100% 334,122,763
100% 378,784,051
100% 450,199,212
100% 534,039,183
100% 636,157,284
TABLE 4
Tax Tax
Rate Levy
.3689% $ 1,005,598
.3889% 1,042,914
.4255% 1,102,209
.4684% 1,212,063
.4275% 1,337,010
.4072% 1,360,548
.3719% 1,408,699
.3554% 1,600,008
.3544% 1,892,640
.3456% 2,198,381
CITY OF SCHERTZ, TEXAS
PROPERTY TAX RATES - ALL OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
TABLE 5
ra
City
School
County
County Road
100%
100%
100%
100%
Assessment Assessment
Assessment
Assessment
Year **
Rate*
Rate*
Rate
Rate
1991
.3689
1.0056
.1418
.0977
1992
.3889
1.2051
.2720
.0850
1993
.4255
1.4777
.3599
.0850
1994
.4684
1.4499
.3036
.0950
1995
.4275
1.3095
.2995
.0867
1996
.4072
1.3712
.3018
.0833
1997
.3719
1.4089
.2997
.0758
1998
.3554
1.4299
.3040
.0730
1999
.3544
1.6923
.3192
.0600
2000
.3455
1.4945
.3417
.0582
*All rates shown are
per $100 assessed valuation.
* *Year shown is the
fiscal year of collection.
Taxes
were levied the previous calendar year.
ra
CITY OF SCHERTZ, TEXAS
RATIO OF NET GENERAL BONDED DEBT TO TAXABLE VALUE
AND NET GENERAL BONDED DEBT PER CAPITA
LAST TEN FISCAL YEARS
TABLE 6
*Based on Preliminary 1990 Census. The estimate has
been challenged by the City.
:1
Ratio
Net
Net General
of Net
General
Fiscal
Bonded
Bonded Debt
Bonded Debt
Year
Estimated
Assessed
Debt
To Assessed
Per Capita
September 30, 1991
10,900*
$272,593,690
$ 715,300
.26
65.62
September 30, 1992
11,500
268,170,123
687,715
.26
59.80
September 30, 1993
12,000
259,038,486
1,190,645
.46
99.22
September 30, 1994
12,500
258,766,426
1,132,129
.43
90.57
September 30, 1995
13,500
312,676,405
1,056,611
.34
78.27
September 30, 1996
14,500
334,122,763
1,215,000
.36
83.79
September 30, 1997
15,000
378,784,051
1,095,000
.29
73.00
September 30, 1998
17,500
450,199,212
5,901,000
1.31
337.20
September 30, 1999
18,000
534,039,183
5,622,230
1.05
312.35
September 30, 2000
18,500
636,157,284
5,321,410
.84
287.64
*Based on Preliminary 1990 Census. The estimate has
been challenged by the City.
:1
CITY OF SCIIERTZ, TEXAS
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
YEAR ENDED SEPTEMBER 30, 2000
TABLE 7
Direct And
Net Estimated Estimated
Bonded Percent Overlapping
Debt Applicable Bonded Debt
*Bexar County $ 139,472,802
*Comal County 7,328,399
*Comal Independent School District 137,775,401
*Guadalupe County 15,525,000
*Schertz- Cibolo- Universal City 21,284,015
Independent School District
*San Antonio, RA
*Alamo Community College District
Total Net Overlapping Debt
*City of Schertz
TOTAL DIRECT AND OVERLAPPING DEBT
(3.22% OF ASSESSED VALUE -
$1,107.33 PER CAPITA)
*Source of Data - Texas Municipal Reports,
City of Schertz, April, 2000
Compiled and Published by Municipal
Advisory Council of Texas
57,865,000
46,470,795
81
6,930,000
0.02%
$ 27,895
0.09
8,596
0.12
166,330
14.75
2,289,938
51.88
11,042,147
0.02 11,573
0.02 9,204
13,555,683
100.00% 6,930,000
$ 20,485,683
CITY OF SCHERTZ, TEXAS
LEGAL DEBT MARGIN
YEAR ENDED SEPTEMBER 30, 2000
TABLE 8
Texas municipalities are not bound by and direct constitutional or statutory maximums as to the
amount of general obligation bonds which may be issued; however, all local bonds must be submitted to and
approved by the State Attorney General. It is the established practice of the Attorney General not to
approve a prospective bond issue if it will result in the levy of a tax for bonded debt of over $1.00 for cities
under 5,000 population or $1.50 for cities over 5,000 population.
82
CITY OF SCHERTZ, TEXAS
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR
GENERAL OBLIGATION BONDED DEBT TO
TOTAL GENERAL FUND EXPENDITURES
LAST TEN FISCAL YEARS
Fiscal
Year
September 30, 1991 $
September 30, 1992
September 30, 1993
September 30, 1994
September 30, 1995
September 30, 1996
September 30, 1997
September 30, 1998
September 30, 1999
September 30, 2000
Debt
Service
TABLE 9
Ratio of Debt
Service to
General
Expenditures
45,000 $
49,067 $
94,067
$ 2,341,055
4.0%
46,000
46,084
92,084
2,344,541
4.0%
57,000
42,830
99,830
2,594,017
3.9%
58,000
97,493
155,493
2,756,605
5.6%
85,000
74,139
159,139
2,936,945
5.4%
341,000
87,098
428,098
3,961,171
10.8%
120,000
65,540
185,540
3,746,737
5.0%
124,000
58,916
182,916
4,467,520
4.1%
278,770
303,468
582,238
6,420,559
11.0%
300,820
286,435
587,225
6,500,517
9.0%
* Includes General, Special Revenue, and Debt Service Funds
CITY OF SCHERTZ, TEXAS
REVENUE BOND COVERAGE — UTILITY SYSTEM BONDS
LAST TEN FISCAL YEARS
TABLE 10
.,
Total
Operating
Operating
Expenses
Income
Fiscal
Operating
Before
Before
Year
Revenues
Depreciation
Depreciation
September 30, 1991
$ 1,515,854
$ 1,139,935
$ 375,919
September 30, 1992
1,487,049
1,203,574
283,475
September 30, 1993
1,617,768
1,387,165
230,603
September 30, 1994
1,997,654
1,206,670
790,984
September 30, 1995
1,967,127
1,292,499
674,628
September 30, 1996
2,390,600
1,325,796
1,064,804
September 30, 1997
2,879,730
1,556,271
1,323,459
September 30, 1998
3,316,900
1,711,388
1,605,512
September 30, 1999
3,250,589
2,145,249
1,105,340
September 30, 2000
3,958,054
2,717,774
1,240,280
.,
85
Number of
Debt Service
Requirements
Customers
Principal
Interest
Total
Coverage
Water Sewer
$ 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
90,000
128,672
218,672
1.06:1
4,074
3,377
95,000
122,106
217,106
3.64:1
4,231
3,488
100,000
115,028
215,028
3.13:1
4,282
3,584
445,000
92,080
537,080
1.98:1
4,877
4,031
55,000
70,578
125,578
10.54:1
5,641
4,622
55,000
67,013
122,013
13.16:1
6,914
5,767
80,000
63,588
143,588
7.70:1
7,351
6,226
35,000
58,375
93,375
13.28:1
6,837
5,814
85
CITY OF SCHERTZ, TEXAS
WATERWORKS AND SEWER SYSTEM FUNDS
REVENUE BOND REQUIREMENTS AND RESTRICTED FUNDS
YEAR ENDED SEPTEMBER 30, 2000
UTILITY SYSTEM REVENUE BONDS, SERIES 1987
Principal Payment, Due September 1, 2001
Interest Payment, Due March 1, 2001
Total Requirements
Cash - Restricted
Over (Under) Requirements
RESERVE FUND REQUIREMENTS
TABLE 11
Annual
Requirement
Principal/
At
Semi - Annual
September 30,
Interest
Basis 2000
35,000
1/12 th $ 2,917
27,876
1/6 th 4,646
7,563
12,389
$ 4,826
The City is required to make monthly deposits sufficient to meet the total reserve fund requirement
within sixty (60) months of the closing date for the 1987 issue. City monthly deposits through September
30, 2000 met these requirements.
1 1/2 Time Average Annual Principal and Interest
Requirement (Annual $145,964) $ 218,946
Cash and Cash Equivalents
Funds Available Over (Under) Requirement
:.
$ 205,901
CITY OF SCHERTZ, TEXAS
DEMOGRAPHIC STATISTICS
LAST TEN FISCAL YEARS
87
Level In
Per
Years Of
Capita Median
Formal
School
Unemployment
Fiscal Population Income Age
Education
Enrollment
Rate in %
Year (1) (2) (3)
(3)
(4)
(3)
1991 10,900 Est. $ 13,436
35
14
4,309
6.3%
1992 12,000 Est. 13,500
33
14
4,619
4.0
1993 12,000 Est. 13,500
32
14
4,700
3.9
1994 12,500 Est. 13,600
32
14
4,576
3.9
1995 13,500 Est. 13,600
32
14
4,678
3.9
1996 14,500 Est. 13,600
32
14
4,841
3.9
1997 15,000 Est. 13,600
33
14
5,136
3.9
1998 17,500 Est. 16,500
32.6
14.6
5,951
3.9
1999 18,000 Est. 16,500
32.6
14.6
5,777
3.9
2000 18,500 Est. 39,757
32.6
14.6
6,407
3.3
Source:
(1) 1990 Bureau of the Census
Department of Planning, University of Texas
(2) Department of Economics, University of Texas
United States Department of Labor
(Information not Available for Odd Years)
(3) Texas Employment Commission
87
CITY OF SCHERTZ, TEXAS
PROPERTY VALUE AND NEW CONSTRUCTION
LAST TEN FISCAL YEARS
Commercial
Construction
Number Value
TABLE 13
Residential
Construction
Number Value
1991
11 $
938,564
33
$ 2,377,438
1992
11
664,016
50
4,140,140
1993
9
235,825
245
22,537,308
1994
21
4,868,688
92
8,323,846
1995
31
4,271,904
126
12,815,060
1996
25
14,758,928
468
48,959,088
1997
32
10,587,644
524
57,591,942
1998
22
17,173,013
537
60,529,538
1999
27
14,396,374
520
58,783,734
2000
21
13,169,373
353
43,092,362
Sources: City Building Inspection Records
City Tax Records
S. W. T. Research Center
Schertz State Bank
Surety Southwest
State Bank & Trust
Property Value*
Commercial
Residential
Nontaxable
$ 32,198,188
$ 177,354,060
$ 430,425
30,327,586
178,353,991
5,086,170
31,626,493
182,817,263
5,360,890
33,775,788
216,454,372
5,374,948
54,009,275
246,501,668
5,607,897
40,363,499
246,223,426
8,557,521
52,420,249
333,173,109
10,448,019
71,693,462
395,802,747
10,898,210
258,298,378
354,485,210
22,672,637
324,331,981
403,920,536
31,850,206
* Estimated Actual Value
:•
CITY OF SCHERTZ, TEXAS
PRINCIPAL TAXPAYERS
YEAR ENDED SEPTEMBER 30, 2000
TABLE 14
TOTAL ASSESSMENTS
.1
$ 636,157,284 100.00%
1999
Percentage Of
Assessed
Total Assessed
Principal Taxpayers
Type of Business
Valuation
Valuation
1.
H E Butt Grocery Co
Grocery Sales
$ 9,517,558
1.50%
2.
Erich W. White
Real Estate
5,769,582
.91
3.
Sycamore Apartments LTD
Apartment Complex
5,005,680
.79
4.
Coronado Paint, Inc.
Industrial
4,570,575
.72
5.
Garden Ridge Pottery
Mercantile
4,496,778
.71
6.
PSPI, Inc.
Machine Fabricating
4,347,106
.68
7.
CHM Parks Inc.
Real Estate
3,118,602
.49
8.
ARC SPEII, LLC
Real Estate
3,095,949
.49
9.
Guadalupe Valley Electric
Utility
3,052,440
.48
10.
American Standard
Industrial
2,427,121
.38
Other
Assessed Properties
590,755,893
92.85
TOTAL ASSESSMENTS
.1
$ 636,157,284 100.00%
CITY OF SCHERTZ, TEXAS
MISCELLANEOUS STATISTICS
YEAR ENDED SEPTEMBER 30, 2000
TABLE 15
Date of Incorporation: December, 1958
Date of First Charter Adopted: April, 1974
Date Present Charted Adopted: Amended May, 1997
Form of Government: Council - Manager
Year
Square Miles
2000
24.18
1999
24.15
1998
24.15
1997
24.15
1996
24.15
1995
24.15
1994
24.15
1993
24.15
1992
24.15
1991
23.75
Miles of highways, Streets, and Alleys
Streets and Highways, Paved 97.49 Miles
Streets, Unpaved 6.78 Miles
Alleys 3.44 Miles
Sidewalks 16.95 Miles
Miles of Sewer:
Storm 3.02 Miles
Sanitary 48.05 Miles
Building Permits:
Value Of
Year
Permits Issued
Buildings
2000
3,716
$61,864,013
1999
3,690
76,501,638
1998
3,767
82,800,348
1997
3,373
71 ,741,172
1996
2,559
64,267,503
1995
2,066
21,150,682
1994
2,771
18,917,416
1993
2,167
27,705,848
1992
873
6,702,848
1991
545
7,667,699
Continued
H
CITY OF SCHERTZ, TEXAS
MISCELLANEOUS STATISTICS (CONTINUED)
SEPTEMBER 30, 2000
TABLE 15
Fire Protection:
Number of Stations
I
Number of Employees (Full and Part -Time)
21
Number of Volunteers
10
Recreation:
17,500
Parks
7
Playgrounds
65
Other Recreational Facilities:
7,260
Baseball Fields
3
Softball Fields
2
Large Pavillion
10,000 Square Feet Covered
Small Pavillion
600 Square Feet Covered
Picnic Tables:
Uncovered
50
Restrooms:
Mate
6
Female
6
Concessions Stands
I
Community Center
I
City Employees:
September 30, 1999
154
Elections:
Number of Registered Voters
11,692
Number of Votes in:
Last Municipal Election
767
Percentage of Registered Voters Voting in:
Last Municipal Election
7%
Source: Municipal Election Records
Population:
Census Population Count
2000 (Estimate)
18,500
1999 (Estimate)
18,000
1998 (Estimate)
17,500
1997 (Estimate)
15,000
1990
10,597
1980
7,260
1970
4,061
1 960
2,281
1950
1,200
1940
600
92