CAFR FY 1998-99COMPREHENSIVE
ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED
SEPTEMBER 30, 1999
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CITY OF SCHERTZ, TEXAS
CITY OF SCHERTZ, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 1999
CITY OFFICIALS
MAYOR HONORABLE HAL BALDWIN
CITY COUNCIL KENNETH GREENWALD
MAYOR PRO -TEM
(MAY 19, 1998 TO NOVEMBER 17, 1998)
GLYN D. WILLAMS
REGINA AGEE
JOE POTEMPA
MAYOR PRO -TEM
(MAY 4, 1999 TO DECEMBER 21, 1999)
PIA JARMAN
MAYOR PRO -TEM
(NOVEMBER 17, 1998 TO MAY 4, 1999)
CITY MANAGER KERRY R. SWEATT
COMPTROLLER VIJAY JAIN
INDEPENDENT AUDITORS
Thompson, Williams, Biediger, Kastor & Young, L.C.
San Antonio, Texas
OFFICIALS ISSUING REPORT
Kerry R. Sweatt
City Manager
Vijay Jain
Comptroller
(This Page Intentionally Left Blank)
CONTENTS
PAGE
NUMBER
INTRODUCTORY SECTION
Letter of Transmittal ix
Organizational Chart xvii
Certificate of Achievement xviii
FINANCIAL SECTION
Independent Auditor's Report 3
General Purpose Financial Statements
Combined Balance Sheet — All Fund Types
and Account Groups and Discretely Presented
Component Units 8
Combined Statement of Revenues, Expenditures,
and Changes in Fund Balances — All Governmental
Fund Types and Discretely Presented Component Units 10
Combined Statement of Revenues, Expenditures,
and Changes in Fund Balances — Budget and
Actual — General and Debt Service Fund Types 11
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, Individual Fund and Account Group
Statements and Schedules
General Fund
Comparative Balance Sheets
KZ:
Comparative Schedules of Revenues,
Expenditures, and Changes in Fund Balances -
Budget and Actual 37
Schedule of Revenues Compared to Budget
38
Schedule of Expenditures Compared to Budget 39
CONTENTS
ry
PAGE
TABLE NUMBER
Special Revenue Funds
Combining Balance Sheet
42
Combining Statement of Revenue, Expenditures
and Changes in Fund Balances
44
Debt Service Fund
Comparative Balance Sheets
48
Comparative Statements of Revenues, Expenditures,
and Changes in Fund Balances — Budget and Actual
49
Capital Projects Fund
Comparative Balance Sheets
52
Comparative Statements of Revenue, Expenses,
and Changes in Fund Balances
53
Enterprise Funds
Combining Balance Sheet
56
Combining Statement of Revenues, Expenses, and
Changes in Retained Earnings
58
Combining Statement of Cash Flows — All
Proprietary Fund Types
59
General Fixed Assets
Schedules of General Fixed Assets — By Source
63
Schedules of General Fixed Assets — By Function
and Activity
64
Discretely Presented Component Units
Combining Balance Sheet
69
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
70
STATISTICAL INFORMATION
General Governmental Expenditures by Function
1 72
General Government Revenues by Source
2 73
ry
CONTENTS
v
PAGE
TABLE
NUMBER
STATISTICAL INFORMATION (CONTINUED)
Property Tax Levies and Collections
3
75
Assessed and Estimated Actual Value of Property
4
76
Property Tax Rates — Direct and Overlapping Governments
5
77
Ratio of Net General Obligation Bonded Debt to Assessed
Value and Net General Bonded Debt Per Capita
6
78
Computation of Direct and Overlapping Debt
7
79
Legal Debt Margin
8
80
Ratio of Annual Debt Service Expenditures for General
Obligation Bonded Debt to Total General Expenditures -
Last Ten Fiscal Years
9
81
Water and Sewer Fund Revenue Bond Coverage
10
82
Waterworks and Sewer System Fund Revenue
Bond Requirements and Restricted Funds
11
83
Demographic Statistics — Last Ten Fiscal Years
12
84
Property Value, Construction, and Bank Deposits
- Last Ten Fiscal Years
13
85
Principal Taxpayers
14
86
Miscellaneous Statistics
15
87
SINGLE AUDIT REPORTS
Report on Compliance and on Internal Control
Over Financial Reporting Based on an Audit of
Financial Statements Performed in Accordance
with Government Auditing Standards
91
Report on Compliance with Requirements Applicable
to each Major Program and Internal Control Over
Compliance in Accordance with OMB Circular A -133
95
Schedule of Expenditures of Federal Awards
98
Schedule of Findings and Questioned Costs
100
v
INTRODUCTORY SECTION
vii
(This Page Intentionally Left Blank)
viii
SC�RT�
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December 31, 1999
. 1400 SCHERTZ PARKWAY
P. O. DRAWER I
SCHERTZ, TEXAS 78154 -0890
AC (210) 658 -3510
FAX (210) 659 -3204
To the Citizens of the City of Schertz, Texas:
KERRY R. SWEATT
CITY MANAGER
The comprehensive annual financial report (CAFR) of the City of Schertz, Texas, (the City) for the year
ending September 30, 1999 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 four (4) sections:
1. Introduction - Includes this letter of transmittal, Organizational Chart, comments regarding
economic conditions and outlook, major occurrences of fiscal year 1998 -99, and major
initiatives for fiscal year 1999 -2000.
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.
4. Single Audit Reports - This section consists of the two (2) reports and two (2) schedules as
required by The Single Audit Act.
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
ix
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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 1998 -1999 include housing starts for 1998-
1999 of 491, compared to 537 for 1997 -1998 and 534 for 1996 -1997. Total building permits were
$76,501,638 for 1998 -1999 compared to $60,529,520 in 1997 -1998 and $57,591,942 in 1996 -1997.
The current economic conditions remain strong. Unemployment in the area remains at historically low
levels at 3% or under. 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 will be 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 will begin 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 will include a new
bridge that meets the 100 -year flood requirement. Development of an alternative water supply with the
City of Seguin continues to be one of the major activities for the next several years.
MAJOR EVENTS
The major event of 1998 -99 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 468 new
residential lots platted during the past twelve months. Ashley Place, Dove Meadows, and Woodland
xi
Oaks, Unit 5A, 56, 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. It is interesting to note that between the years of 1993 and 2000 there
were 2,916 new residential lots platted. Although 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 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.
Tri- County Business and Industrial Park continues to be a prime location, as a fully developed business
park. This year Taco Cabana and Schlotsky's have opened retail outlets complementing the existing mix
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. AER Manufacturing, Alamo Packaging,
Interplastic, Lone Star Pet Supply, and Theiss Distributing all completed their new buildings this year
adding over 250,000 square feet of industrial space in Tri- County Business and Industrial Park.
Other industrial activity in the Tri- County Business Park includes the announcement of ground breaking for
three new buildings. S.P. Richards, a subsidiary of Genuine Parts has broken ground on a 137,000
square foot building; Keaco Inc. has broken ground on a 30,000 square foot building; and Victory
Packaging has broken ground on a 132,000 square foot building. Pro Logis Trust has also continued its
investment in our community with the announcement and ground breaking for a 160,000 square foot
building, and the purchase of property for a 211,000 square foot "inventory" building. The park now has
over 1 million square feet of "covered space" in distribution and other facilities.
In addition, a long -time Schertz business, Coronado Paint completed a 30,000 square foot expansion.
Expansions are a very positive indicator of our recent success as the companies are telling us they are
prosperous and are treated well.
MAJOR INITIATIVES
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 1/2 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 will soon be finished, the remodel work on the library is finished, and the
renovation of the municipal building will begin soon. Establishment of the Schertz /Seguin Local
Government Corporation and that activity is designed to assure a dependable, drought resistant water
supply independent of the Edwards Aquifer for the next 50 years.
xii
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.
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, 1999.
General Governmental Functions: Revenues which include general, special revenue, debt service, and
capital projects for general governmental function totaled $6,582,518 in 1999, an increase of 21.13%
from 1998. Taxes produced 55.78% of general revenues compared to 58.32% last year. The amount of
revenues from various sources and the increase /decrease from last year are shown in the following
tabulation:
$6,582,518 100.00% $1,148,423
xiii
PERCENT
INCREASE
OF
(DECREASE)
AMOUNT
TOTAL
FROM 1998
Taxes (Property, Sales, Etc.)
$3,671,516
55.78%
$ 502,590
Licenses and Permits
680,316
10.33
69,373
Charges for Services
558,904
8.49
86,538
Fines and Forfeitures
379,584
5.77
35,641
Other Revenues
1,292,198
19.63
454,281
$6,582,518 100.00% $1,148,423
xiii
Expenditures. For general governmental purposes, expenditures totaled $9,781,111, an increase of
90.01 % from 1998. Changes in levels of expenditures for major functions of the City over the preceding
year are shown in the following tabulation:
$9,781,111 $100.00% $4,633,473
As reflected in the financial statements, general fund revenues including sales tax as well as ad valorem
taxes have generally increased. Through cooperative agreements with Guadalupe County, specific
intergovernmental payments for services such as library, fire, and SAFES have increased. Other major
fluctuations include: an increase in construction permits and related items due to an increase in total
construction. General fund expenditures have increased in a number of areas including overall personnel
costs resulting from step increases and related items. We believe overall realignments in budget
accounts more correctly reflect actual cost centers by activity and function than in years prior.
General obligation bonded debt data for the City of Schertz at the end of the 1999 fiscal year was as
follows:
Net General Obligation Bonded
Debt (Principal)
General Obligation Bonds
Revenue Bonds
xiv
AMOUNT
$5,622,230
RATIO OF DEBT
TO ASSESSED
VALUE (100 %)
OF PRESENT
MARKET
1.05
DEBT
PER CAPITA
$312.35
STANDARD
& POOR'S
I1
PERCENT
INCREASE
OF
(DECREASE)
FUNCTION
AMOUNT
TOTAL
FROM 1998
General Government
$1,307,488
13.37%
$ 240,040
Public Safety
2,061,488
21.08
207,706
Streets and Parks
806,029
8.24
397,568
Health Services
142,287
1.45
15,222
Recreation
274,865
2.81
14,861
Economic Development
279,058
2.85
10,288
Bond Issue Cost
-
0.00
(53,943)
Capital Outlay
4,244,176
43.39
3,570,934
Debt Service
665,720
6.81
230,797
$9,781,111 $100.00% $4,633,473
As reflected in the financial statements, general fund revenues including sales tax as well as ad valorem
taxes have generally increased. Through cooperative agreements with Guadalupe County, specific
intergovernmental payments for services such as library, fire, and SAFES have increased. Other major
fluctuations include: an increase in construction permits and related items due to an increase in total
construction. General fund expenditures have increased in a number of areas including overall personnel
costs resulting from step increases and related items. We believe overall realignments in budget
accounts more correctly reflect actual cost centers by activity and function than in years prior.
General obligation bonded debt data for the City of Schertz at the end of the 1999 fiscal year was as
follows:
Net General Obligation Bonded
Debt (Principal)
General Obligation Bonds
Revenue Bonds
xiv
AMOUNT
$5,622,230
RATIO OF DEBT
TO ASSESSED
VALUE (100 %)
OF PRESENT
MARKET
1.05
DEBT
PER CAPITA
$312.35
STANDARD
& POOR'S
I1
Property Taxes. Current tax collections are 98.8% of the tax levy. This is the seventeenth consecutive
year in which current property tax collections have exceeded 97.0 %. The ratio of total collections
(current and delinquent) to the current tax levy was 102.3 %. Allocations of property tax levy by purpose
for 1999 and the preceding two fiscal years are as follows (amounts per $100 assessed value):
PURPOSE
General Fund
General Obligation Debt
1999 1998 1997
.3169% .3049% .3117%
.0375 .0505 .0602
.3544% .3554% .3719%
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 $574,547, an increase of
$6,361 interest compared to earnings during 1998. 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 Norwest.
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, 1999, the general fixed assets of the City amounted to $16,802,163. This amount
represents the original cost, or an estimate of the original cost of the assets. Depreciation of general
fixed assets is not recognized in the City's accounting system. Refer to Notes 1 (j) and 5 in the notes to
the financial statements.
The City is self- insured on physical damage to specific vehicles. In order to provide coverage for this, risk
funds are designated within the general fund with a balance of $45,000 at September 30, 1999 and an
allocation within the reserve of $300,000.
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
1999 1998
$3,250,589 $3,316,900
626,171
1,021,961
133,233
1,300,095
1,516,412
142,811
During the year, $80,000 of maturing revenue bonds and $5,000 in Public Facility HUD Bond and
$27,700 of a note payable (New Braunfels Utilities) were retired in the water and sewer fund.
Schertz Area Facility for Emergency Services (SAFES). During the fiscal year ended September 30,
1999, SAFES increased its revenue 6.33% but operating expenses were increased by 25.9 %. SAFES is
fully dependent on income fees generated from services rendered and the contracted cities' support to
cover operations costs. This year SAFES had an operating loss before depreciation of $(53,099).
xv
OTHER INFORMATION
Awards. The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its
comprehensive annual financial report for the fiscal year ended September 30, 1998. The Certificate of
Achievement is the highest form of recognition for excellence in state and local government financing
reporting.
In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable
and efficiently organized comprehensive annual financial report, whose contents conform to program
standards. Such reports must satisfy both generally accepted accounting principles and applicable legal
requirements.
A Certificate of Achievement is valid for a period of one year only. The City of Schertz has received a
Certificate of Achievement for the last 11 consecutive years. We believe our current report continues to
conform to the Certificate of Achievement program requirements, and we are submitting it to GFOA.
The City Council has selected the firm of Thompson, Williams, Biediger, Kastor & Young, L.C. of San
Antonio, Texas, to perform the independent audit for the fiscal year 1998 -99. 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 representatives of the audit firm of Thompson, Williams,
Biediger, Kastor & Young, L.C. have provided a high degree of expertise and assistance for the
preparation of the report and I wish to express my personal thanks and appreciation for their help.
Respectively Submitted,
Lzlg5�� �-
Kerry R. Pgaer
att
City Man
xvi
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xvii
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, 1998
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.
��E OFp,Y�J
s c e
N,r„ d M r President
sg SIAL ~
yz�(7 a� or • C�
Executive Director
xviii
FINANCIAL SECTION
(This Page Intentionally Left Blank)
NORTH TOWER
800 N.W. LOOP 410, SUITE 30ON
SAN ANTONIO, TEXAS 78216 -5611
210/341 -2581
FAX 210/341 -2588
To the Honorable Mayor and
Members of the City Council
City of Schertz, Texas
Thompson,
Williams,
Biediger,
K for
Young,
L.C.
Independent Auditor's Report
CERTIFIED PUBLIC ACCOUNTANTS
MEMBERS AMERICAN INSTITUTE OF
CERTIFIED PUBLIC ACCOUNTANTS
We have audited the accompanying general purpose financial statements of the City
of Schertz, Texas, as of and for the year ended September 30, 1999, 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.
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 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 general
purpose 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, 1999, and the results of its operations and the cash flows of its proprietary
fund types for the year then ended, in conformity with generally accepted accounting
principles.
In accordance with Government Auditing Standards, we have also issued a report
dated February 10, 2000 on our consideration of City of Schertz' internal control over
financial reporting and our tests of its compliance with certain provisions of laws,
regulations, contracts and grants.
R. LARRY THOMPSON, C.P.A. / PAUL E. WILLIAMS. C.P.A. / JAMES L. BIEDIGER. JR.. C.P.A. / C. TED KASTOR, C.P.A. / CHARLIE E. YOUNG. JR.. C.P.A.
H. LEE SCHWARTZMAN, C.P.A. / F. GLENN CRAVEY, C.P.A. / FRED J. TIMMONS. C.P.A. / JOHN W GREEN, C.P.A. 3
JAMES T. McCARTY, C.P.A. (RETIRED)
(This Page Intentionally Left Blank)
Our audit was performed for the purpose of forming an opinion on the general
purpose financial statements taken as a whole. The combining and individual fund and
account group financial statements and schedules listed in the table of contents are
presented for the purposes of additional analysis and are not a required part of the general
purpose financial statements of the City of Schertz, Texas. The accompanying schedule of
expenditures of federal awards is presented for purposes of additional analysis as required
by U. S. Office of Management and Budget Circular A -133, Audits of States, Local
Governments, and Non - Profit Organizations, and is not a required part of the general
purpose financial statements of the City of Schertz, Texas. 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.
San Antonio, Texas
February 10, 2000
Certified Public Accountants
(This Page Intentionally Left Blank)
GENERAL PURPOSE FINANCIAL STATEMENTS
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CITY OF SCHERTZ, TEXAS
COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - GENERAL AND DEBT SERVICE FUND TYPES
YEAR ENDED SEPTEMBER 30, 1999
FUND BALANCES -
OCTOBER 1, 1998 2,71 1,015 171,987
FUND
BALANCES -
SEPTEMBER 30,
1999 $2,642,767 $170,444
(See Accompanying Notes to Financial Statements)
11
GENERAL FUND
DEBT SERVICE FUND
VARIANCE
VARIANCE
FAVORABLE
FAVORABLE
BUDGET
ACTUAL
(UNFAVORABLE)
BUDGET
ACTUAL
(UNFAVORABLE)
REVENUES
Taxes
$3,110,811
$3,565,950
$ 455,139
$ -
$ -
$ -
Licenses and Permits
526,300
680,316
154,016
-
-
-
Charges for Services
602,563
558,904
(43,659)
-
-
-
Fines and Forfeitures
351,750
369,255
17,505
-
-
-
Other Revenue
140,050
677,932
537,882
10,094
10,094
Total Revenues
4,731,474
5,852,357
1,120,883
10,094
10,094
EXPENDITURES
Current
General Government
1,239,304
1,306,500
(67,196)
-
-
-
Public Safety
1,951,787
2,023,379
(71,592)
-
-
-
Streets and Parks
598,521
472,408
126,113
-
-
-
Health
153,512
142,287
11,225
-
-
-
Recreation
234,242
274,865
(40,623)
-
-
-
Economic Development
85,734
85,845
(111)
-
-
-
CapitalOutlay
359,791
922,721
(562,930)
-
-
-
Debt Service
Principal
-
-
-
98,414
338,770
(240,356)
Interest and Fees
3,109
3,109
98,414
323,841
(225,427)
Total Expenditures
4,626,000
5,231,114
(605,114)
196,828
662,611
(465,783)
Excess (Deficiency)
of Revenues Over
(Under)
Expenditures
105,474
621,243
515,769
(196,828)
(652,517)
(455,689)
OTHER FINANCING
SOURCES (USES)
Operating Transfers
In (Out)
(196,828)
(676,432)
(479,604)
196,828
258,785
61,957
Operating Transfers In
(Out) from Component
Units
(13,059)
(13,059)
392,189
392,189
Total Other Financing
Sources (Uses)
(196,828)
(689,491)
(492,663)
196,828
650,974
454,146
Excess (Deficiency)
of Revenues and
Other Financing
Sources Over
(Under)
Expenditures and
Other Financing
Uses
$ 191,354)
(68,248)
$ 23,106
$ -
(1,543)
S 11,543)
FUND BALANCES -
OCTOBER 1, 1998 2,71 1,015 171,987
FUND
BALANCES -
SEPTEMBER 30,
1999 $2,642,767 $170,444
(See Accompanying Notes to Financial Statements)
11
OPERATING REVENUE
Fees Charged to Users
Reimbursements and Other
Total Operating Revenue
OPERATING EXPENSES BEFORE
DEPRECIATION
Personnel Services
Sewage Treatment
General and Administrative
Contractual Services
Supplies /Maintenance
Bad Debts
Total Operating Expenses
before Depreciation
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
3,005,221 115,158 3,120,379 2,486,788
1,052,241 (17,007) 1,035,234 1,679,466
519,625 2,530
532,616 (19,537)
190,652 348
(120,483) -
70,169 348
602,785 (19,189)
522,155 347,933
513,079 1,331,533
191,000 223,279
(120,483) (138,523)
70,517 84,756
583,596 1,416,289
(24,774) - (24,774) 129,169
578,011 (19,189) 558,822 1,545,458
138,106 - 138,106 -
716,117 (19,189) 696,928 1,545,458
3,833,177 (47,222) 3,785,955 2,240,497
(169,858) - (169,858) -
3,663,319 (47,222) 3,616,097 2,240,497
4,379,436 (66,411) 4,313,025 3,785,955
63,839 - 63,839 -
$4,443,275 $ 61 6,411) $4,376,864 $3,785,955_
(See Accompanying Notes to Financial Statements)
12
TOTALS
ENTERPRISE
INTERNAL
(MEMORANDUM ONLY)
FUNDS
SERVICE
1999
1998
$3,854,059
$ 97,985
$3,952,044
$4,089,900
203,403
166
203,569
76,354
4,057,462
98,151
4,155,613
4,166,254
1,317,480
62,303
1,379,783
1,01 1,612
550,647
-
550,647
503,139
272,800
2,006
274,806
275,455
493,123
903
494,026
361,313
325,709
49,946
375,655
304,535
45,462
-
45,462
30,734
3,005,221 115,158 3,120,379 2,486,788
1,052,241 (17,007) 1,035,234 1,679,466
519,625 2,530
532,616 (19,537)
190,652 348
(120,483) -
70,169 348
602,785 (19,189)
522,155 347,933
513,079 1,331,533
191,000 223,279
(120,483) (138,523)
70,517 84,756
583,596 1,416,289
(24,774) - (24,774) 129,169
578,011 (19,189) 558,822 1,545,458
138,106 - 138,106 -
716,117 (19,189) 696,928 1,545,458
3,833,177 (47,222) 3,785,955 2,240,497
(169,858) - (169,858) -
3,663,319 (47,222) 3,616,097 2,240,497
4,379,436 (66,411) 4,313,025 3,785,955
63,839 - 63,839 -
$4,443,275 $ 61 6,411) $4,376,864 $3,785,955_
(See Accompanying Notes to Financial Statements)
12
CITY OF SCHERTZ, TEXAS
COMBINED STATEMENT OF CASH FLOWS - ALL PROPRIETARY FUND TYPES
YEAR ENDED SEPTEMBER 30, 1999
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1998)
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 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 -Term Debt
Interest Paid on Long -Term Debt
Capital Advanced to Joint Venture
Capital Received (Contributed) for
Capital Assets
Net Cash Used in Capital and Related
Financing Activities
CASH FLOWS FROM INVESTING ACTIVITIEa,
Interest on Investments
Net Increase (Decrease) in Cash
CASH AND CASH EQUIVALENTS
BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS -
END OF YEAR
Comprised of
Current Assets
Restricted Assets
CASH AND CASH EQUIVALENTS -
END OF YEAR
TOTALS
ENTERPRISE INTERNAL (MEMORANDUM ONLY)
FUNDS SERVICE 1999 1998
$3,800,880 $97,985 $3,898,865 $4,181,835
(2,063,289) (32,130) (2,095,419) (2,452,279)
(1,272,949) (59,947) (1,332,896) (1,005,407)
203,403 166 203,569 76,354
668,045 6,074 674,119 800,503
(24,774) - (24,774) 129,169
(503,203)
- (503,203) (855,163)
(276,929)
- (276,929) (278,729)
(123,064)
- (123,064) (147,049)
(742,798)
- (742,798) -
63,839 - 63,839 (43,461)
(1,582,155) - (1,582,155) (1,324,402)
190,652
348
191,000
223,279
(748,232)
6,422
(741,810)
(171,451)
4,125,205
14,528
4,139,733
4,311,184
$ 3,376,973
$20,950
$3,397,923
$4,139,733
$2,110,309
$20,950
$2,131,259
$1,697,182
1,266,664
-
1,266,664
2,442,551
$3,376,973 $20,950 $3,397,923 $4,139,733
(See Accompanying Notes to Financial Statements)
13
(Continued)
RECONCILIATION OF OPERATING INCOME
INCOME (LOSS) TO NET CASH PROVIDED
BY OPERATING ACTIVITIES
Operating Income (Loss)
Adjustments to Reconcile Operating
Income (Loss) to Net Cash Provided by
Operating Activities
Depreciation /Amortization
Depreciation Attributed to Contributed
Capital
Provision for Uncollectible Accounts
(Increase) Decrease in the Following
Assets
Accounts Receivable
Inventory
Due from Other Funds
Increase (Decrease) in the Following
Liabilities
Vouchers Payable
Due to Other Funds
Accrued Vacation
Accrued Salaries
Salary Reserve
Customer Deposits
NET CASH PROVIDED BY
OPERATING ACTIVITIES
(See Accompanying Notes to Financial Statements)
TOTALS
ENTERPRISE INTERNAL (MEMORANDUM ONLY)
FUNDS SERVICE 1999 1998
$ 532,616 $(19,537) $ 513,079 $1,342,579
381,519 2,530
138,106• -
2,620 -
(10,335) -
8,123 371
(444,903) -
(54,066)
(441)
111,401
20,795
7,861
630
18,335
863
18,335
863
(41,567)
=
384,049 347,933
138,106 138,106
2,620 (49,272)
(10,335) 141,207
8,494 (2,913)
(444,903)
(54,507)
64,453
132,196
(1,221,308)
8,491
6,205
19,198
-
19,198
-
(41,567)
33,513
S 668,045 $ 6,074 $ 674,119 $ 800,503
14
CITY OF SCHERTZ, TEXAS ; \
NOTES TO FINANCIAL STATEMENTS l
SEPTEMBER 30, 1999
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the City of Schertz, Texas, (the City), have been prepared in conformity
with generally accepted accounting principles (GAAP) as applied to government units. The Government
Accounting Standards Board (GASB) is the accepted standard - setting body for establishing
governmental accounting and financial reporting principles. The more significant of the City's
accounting policies are described below.
A. Financial Reporting Entity
The City of Schertz is a city in which citizens elect the mayor and council members at large. The
accompanying financial statements present the City's primary government and component units
over which the City exercises significant influence. Significant influence or accountability is based
primarily on operational or financial relationships with the City.
Discretely presented component units consist of the following:
1. Schertz Development Foundation: The foundation is a nonprofit corporation organized and
operated for charitable purposes, including, but not limited to, assisting the City of Schertz, Texas,
to develop and implement plans for economic viability for the City. The foundation board is chosen
by the City Council and the executive director is employed by the City. The books and records are
kept by city personnel. Annual reports of the Schertz Development Foundation for fiscal year
ended September 30, 1999 are available upon request from City Hall.
2. Library: The library's governing board is appointed by the Schertz City Council and provides the
majority of its funding. The library provides a service to citizens outside of the City of Schertz.
Annual reports of the library fund for fiscal year ended September 30, 1999 are available upon
request from City Hall.
3. Schertz Economic Development Corporation: 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 will consist of seven (7) persons appointed by the city
council and four (4) of the directors must be members of the council. Annual reports of Schertz
Economic Development Corporation for the fiscal year ended September 30, 1999 are available
upon request from City Hall.
B. Fund Accounting
The City uses funds and account groups to report on its financial position and the results of its
operations. Fund accounting is designed to demonstrate legal compliance and to aid financial
management by segregating transactions related to certain City functions or activities.
A fund is a separate accounting entity with a self - balancing set of accounts. An account group, on
the other hand, is a financial reporting device designed to provide accountability for certain assets
and liabilities that are not recorded in the funds because they do not directly affect net expendable
available financial resources.
Funds are classified into two categories: governmental and proprietary. Each category, in turn, is
divided into separate "fund types."
15
CITY OF SCHERTZ TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER _30,1 999
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
B. Fund Accounting (Continued)
Governmental funds are used to account for all or most of a government's general activities,
including the collection and disbursement of earmarked monies (Special Revenue Fund), the
acquisition or construction of general fixed assets (Capital Projects Fund), and the servicing of
general long -term debt (Debt Service Fund). The General Fund is used to account for all activities
of the City not accounted for in some other fund.
Proprietary funds are used to account for activities similar to those found in the private sector,
where the determination of net income is necessary or useful to sound financial administration.
Goods or services from such activities can be provided either to outside parties (Enterprise Fund) or
to other departments.
C. Basis of Accounting
The accounting and financial reporting treatment applied to a fund is determined by its
measurement focus. All governmental funds are accounted for using a current financial resources
measurement focus. With this measurement focus, only current assets and current liabilities
generally are included on the balance sheet. Operating statements of these funds present
increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other
financing uses) in net current assets.
All proprietary funds are accounted for on a flow of economic resources measurement focus. With
this measurement focus, all assets and all liabilities associated with the operation of these funds
are included on the balance sheet. Fund equity (i.e., net total assets) is segregated into contributed
capital and retained earnings components. Proprietary fund -type operating statements present
increases (e.g., revenues) and decreases (e.g., expenses) in net total assets.
The modified accrual basis of accounting is used by all governmental fund types. Under the
modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e.,
when they become both measurable and available). "Measurable" means the amount of the
transaction can be determined and "available" means collectible within the current period or soon
enough thereafter to be used to pay liabilities of the current period. The City considers property
taxes as available if they are collected within sixty (60) days after year end. A one -year availability
period is used for revenue recognition for all other governmental fund revenues. Expenditures are
recorded when the related fund liability is incurred. Principal and interest on general long -term debt
are recorded as fund liabilities when due or when amounts have been accumulated in the Debt
Service Fund for payments to be made early in the following year.
Those revenues susceptible to accrual are property taxes, franchise taxes, special assessments,
interest revenue, and charges for services. Licenses, fines, and permits are not susceptible to
accrual because generally they are not measurable until received in cash.
The accrual basis of accounting is utilized by proprietary fund types. Under this method, revenues
are recorded when earned and expenses are recorded at the time liabilities are incurred.
The City reports deferred revenue on its combined balance sheet. Deferred revenues arise when a
potential revenue does not meet both the "measurable" and "available" criteria for recognition in
the current period. Delinquent taxes are reported as deferred revenue as they are not available for
current use.
16
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1999
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Fund Structure
The City uses funds and account groups to report its financial position and the results of its
operations. A fund is a separate accounting entity with a self - balancing set of accounts. An
account group is a financial reporting device designed to provide accountability for certain assets
and liabilities that are not recorded in the funds because they do not directly effect net expendable
available financial resources.
The financial activities of the City are recorded in the fund types and account groups identified
below.
Governmental Fund Types
General Fund - is the primary operating fund of the City used to account for all financial
transactions except those required to be accounted for in another fund.
Special Revenue Funds - used to account for proceeds of specific revenue sources that are legally
restricted for specified purposes.
Capital Projects Funds — used to account for the acquisition or construction of major city -owned
capital facilities.
Debt Service Funds — used to account for the accumulation of resources for, and the payment of,
principal, interest, and related costs of general long -term obligations.
Proprietary Fund Types
Enterprise Funds - used to account for those operations where the City's intent is that the cost of
providing goods or services to the general public be financed or recovered primarily through user
charges or where the periodic determination of net income is appropriate for capital maintenance,
management control, public policy, accountability, or other purposes.
Internal Service Funds — used to account for the operations of City agencies which render services
or provide goods to other City units on a cost - reimbursement basis.
Account Groups
General Fixed Assets Account Group - used to account for fixed assets of the City not accounted
for in specific proprietary funds.
General Long -term Debt Account Group — used to account for the unmatured general long -term
liabilities of the City, except for debt accounted for directly in proprietary funds.
E. Budgets
The City Charter establishes requirements for the adoption of budgets and related budgetary
control. Budgetary preparation and control is exercised at the departmental level. Amendments to
budget total are made only by the City Council. The city manager is authorized to amend the
budget without City Council approval by transferring budget amounts between line items within a
department.
17
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1999
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. Budgets (Continued)
Annual appropriated budgets are adopted for the general and debt service funds. The budgets are
prepared using the modified accrual basis of accounting. All annual appropriations lapse at fiscal
year end. Project - length financial plans are adopted for all capital projects funds. In addition, as
part of the overall budget process, budgets are adopted for the proprietary fund; however, the City
does not require a reporting as part of the comprehensive annual financial report.
Encumbrances represent commitments related to unperformed contracts for goods or services.
Encumbrance accounting - under which purchase orders, contracts and other commitments for the
expenditure of resources are recorded to reserve that portion of the applicable appropriation - is
utilized in the governmental funds. Any encumbrances outstanding at year end are reported as
reservations of fund balances and do not constitute expenditures or liabilities because the
commitments will be honored during the subsequent year.
F. Cash and Cash Equivalents
Cash and cash equivalents include amounts in demand deposits, short-term certificates of deposit
with a maturity date within three (3) months of the date acquired by the City, and investment
pools.
G. Short -Term Interfund Receivables /Pavables
During the course of operations, numerous transactions occur between individual funds for goods
provided or services rendered. These receivables and payables are classified as "due from other
funds" or "due to other funds" on the balance sheet. Short-term interfund loans are classified as
"interfund receivables /payables."
H. Inventories
Inventories are valued at cost, which approximates market, using the first -in first -out (FIFO)
method. The costs of governmental fund -type inventories are recorded as expenditures when
consumed rather than when purchased.
Restricted Assets
Certain proceeds of Enterprise Fund revenue bonds, as well as certain resources set aside for their
repayment are classified as restricted assets on the balance sheet because their use is limited by
applicable bond covenants. Funds are segregated to report those proceeds of revenue bond
issuances that are restricted for use in construction. Funds are also segregated to provide for debt
services as provided under bond indenture agreements.
J. Fixed Assets
General fixed assets are not capitalized in the funds used to acquire or construct them. Instead,
capital acquisition and construction are reflected as expenditures in governmental funds, and the
related assets are reported in the general fixed assets account group. All purchased fixed assets
are valued at cost where historical records are available and at an estimated historical cost where
no historical records exist. Donated fixed assets are valued at their estimated fair market value on
the date received.
18
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1999
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
J. Fixed Assets (Continued)
The costs of normal maintenance and repairs that do not add to the value of the asset or materially
extend asset lives are not capitalized. Improvements are capitalized and depreciated over the
remaining useful lives of the related fixed assets, as applicable.
Public domain ( "infrastructure ") general fixed assets consisting of roads, bridges, curbs and
gutters, streets and sidewalks, drainage system, and lighting systems are capitalized.
Assets in the general fixed assets account group are not depreciated. Depreciation of buildings,
equipment, and vehicles in the proprietary fund types is computed using the straight -line method.
Interest is capitalized on proprietary fund assets acquired with tax - exempt debt. The amount of
interest to be capitalized is calculated by offsetting interest expense incurred from the date of the
borrowing until completion of the project with interest earned on invested proceeds over the same
period.
K. Compensated Absences
Vested or accumulated vacation leave that is expected to be liquidated with expendable available
financial resources is reported as an expenditure and a fund liability of the governmental fund that
will pay it. Amounts of vested or accumulated vacation leave that are not expected to be
liquidated with expendable available financial resources are reported in the general long -term debt
account group. No expenditure is reported for these amounts. Vested or accumulated vacation
leave of proprietary funds is recorded as an expense and liability of those funds as the benefits
accrue to employees. In accordance with the provisions of GASB Statement No. 16, "Accounting
for Compensated Absences," no liability is recorded for nonvesting accumulating rights to receive
sick pay benefits.
L. 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.
M. 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.
N. Fund Equity
Contributed capital is recorded in proprietary funds that have received capital grants or
contributions from developers, customers, or other funds. Reserves represent those portions of
fund equity not appropriate for expenditure or legally segregated for a specific future use.
Designated fund balances represent tentative plans for future use of financial resources.
19
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1999
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
0. 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.
P. Interfund Transactions
Quasi - external transactions are accounted for as revenues, expenditures, or expenses.
Transactions that constitute reimbursements to a fund for expenditures /expenses initially made
from it that are properly applicable to another fund, are recorded as expenditures /expenses in the
reimbursing fund and as reductions of expenditures /expenses in the fund that is reimbursed.
All other interfund transactions, except quasi- external transactions and reimbursements, are
reported as transfers. Nonrecurring or non - routine permanent transfers of equity are reported as
residual equity transfers. All other interfund transfers are reported as operating transfers.
Q. Cash Flows Statement
For purposes of the statement of cash flows, the City considers all highly liquid investments
(including restricted assets) with an original maturity of approximately ninety days or less when
purchased to be cash equivalents.
R. Memorandum Only — Total Columns
S.
T.
Total columns on the general purpose financial statements are captioned "memorandum only" to
indicate that they are presented only to facilitate financial analysis. Data in these columns do not
present financial position, results of operations, or changes in cash flows in conformity with
generally accepted accounting principles. Neither are such data comparable to a consolidation.
Interfund eliminations have not been made in the aggregation of this data.
Comparative Data
Comparative total data for the prior year has been presented in the accompanying financial
statements in order to provide an understanding of changes in the government's financial position
and operations.
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.
20
CITY OF SCHERTZ. TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1999
NOTE 2: COMPLIANCE - BUDGETS
On or before July each year, all agencies of the City submit request for appropriation to the city
manager so that a budget may be prepared. The budget is prepared by fund, department, function, and
activity, and includes information on the past year, current year estimates, and requested appropriations
for the next fiscal year.
Before September 30, the proposed budget is presented to the City Council for review, modification,
and approval. By state statute budgeted expenditures may not exceed budgeted revenues.
Expenditures may not legally exceed budgeted appropriations at the fund level.
NOTE 3: DEPOSITS WITH FINANCIAL INSTITUTIONS
The City maintains demand deposit accounts, savings accounts, certificates of deposit, and investment
pools that are available for the individual funds from which they are generated. The fund accounts are
displayed on the combined balance sheet under the captions "Cash and Cash Equivalents."
The City's bank balances and the bank balances of the discretely presented component units were
entirely covered by federal depository insurance and collateral held in safekeeping in the City's name.
Also for liquidity purposes, the City invests in the Logic Investment Pool, Lone Star Investment Pool,
and MBIA Investment Pool.
The City is allowed to invest in (1) obligations of the United States or its agencies and instrumentalities;
(2) direct obligations of the State of Texas or its agencies; (3) other obligations, the principal of and
interest on which are unconditionally guaranteed or insured by the State of Texas or the United States;
(4) obligations of states, agencies, counties, cities, an 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.
The City had demand deposits with a carrying value of $319,943 and bank balances of these accounts
totaled $772,469.
The City had temporary investments in the Logic Investment Pool, the Lone Star Investment Pool, and
MBIA Investment Pool totaling $9,881,254.
The discretely presented component units of the City had demand deposits with carrying values and
bank balances of $6,689 and temporary investments in the Investment Pools totaling $328,560.
21
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1999
NOTE 4: RECEIVABLES
Receivables at September 30, 1999 consist of the following:
The delinquent taxes receivable account represents past years of uncollected tax levies and is also
reflected as a deferred revenue of equal amount.
Property taxes are levied as of October 1 on property values assessed as of January 1. Property taxes
are payable on or before January 31 following the levy date without penalty or interest.
Unpaid property taxes attach as an enforceable lien on property as of February 1 with penalty and
interest. On July 1, unpaid taxes are forwarded for collection and are subject to additional penalties for
collection expenses.
NOTE 5: GENERAL FIXED ASSETS
The following is a summary of changes in general fixed assets:
BALANCES AT
DEBT
BALANCES AT
OCTOBER 1,
GENERAL
SERVICE
ENTERPRISE
TOTAL
RECEIVABLES
DEDUCTIONS 1999
Land*
$ 501,994
$ 495,179
Taxes
$ 94,991
$11,239
$ -
$106,230
Account
81,921
-
504,402
586,323
Gross Receivables
176,912
11,239
504,402
692,553
Less: Allowance for Uncollectible
4,750
562
16,948
22,260
NET TOTAL RECEIVABLES
$172,162
$10,677
$478,454
$670,293
The delinquent taxes receivable account represents past years of uncollected tax levies and is also
reflected as a deferred revenue of equal amount.
Property taxes are levied as of October 1 on property values assessed as of January 1. Property taxes
are payable on or before January 31 following the levy date without penalty or interest.
Unpaid property taxes attach as an enforceable lien on property as of February 1 with penalty and
interest. On July 1, unpaid taxes are forwarded for collection and are subject to additional penalties for
collection expenses.
NOTE 5: GENERAL FIXED ASSETS
The following is a summary of changes in general fixed assets:
*Adjusted to Include Land of $10,688 in Schertz Development Foundation
22
BALANCES AT
BALANCES AT
OCTOBER 1,
SEPTEMBER 30,
1998
ADDITIONS
DEDUCTIONS 1999
Land*
$ 501,994
$ 495,179
$ - $ 997,173
Buildings
1,226,466
2,990,120
- 4,216,586
Improvements Other than Buildings
8,265,774
289,542
- 8,555,316
Vehicles
1,277,090
116,976
- 1,394,066
Equipment
1,286,663
352,359
- 1,639,022
$12,557,987
$4,244,176
$ - $16,802,163
*Adjusted to Include Land of $10,688 in Schertz Development Foundation
22
CITY OF SCHERTZ. TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1999
NOTE 6: FIXED ASSETS - PROPRIETARY FUND TYPES
Buildings 30 Years
Sewer and Water Lines 50 Years
Equipment 5 - 10 Years
NOTE 7: LONG -TERM DEBT
A. General Long -Term Debt
The following is a summary of changes in general long -term debt:
BALANCE BALANCE
OUTSTANDING OUTSTANDING
ORIGINAL INTEREST OCTOBER 1, DURING YEAR SEPTEMBER 30,
AMOUNT RATE 1998 ISSUED RETIRED 1999
General
Obligation Bonds
1962 Series $ 301,000
1987 Series 454,000
1992 Series 620,000
1998 Series 4,930,000
Certificates
of Obligation
1990 Series
General
Obligation
Refunding Bonds
1995 Series
850,000
3.63%
ENTERPRISE
INTERNAL
$ 24,000
6.2-8.3
WATER /SEWER
SAFES
SERVICE
TOTAL
Buildings
$ 195,724
$ 26,656
$58,804
$ 281,184
Improvement Other than Buildings
10,792,482
7,642
1,142
10,801,266
Machinery and Equipment
990,339
563,639
25,198
1,579.176
11,978,545
597,937
85,144
12,661,626
Accumulated Depreciation
6,607,572
389,109
34,229
7,030,910
5,370,973
208,828
50,915
5,630,716
Land
160,521
-
-
160,521
TOTALS
$ 5,531,494
$208,828
$50,915
$ 5,791,237
In the proprietary and internal service
funds, the following useful
lives are used
to compute
depreciation:
Buildings 30 Years
Sewer and Water Lines 50 Years
Equipment 5 - 10 Years
NOTE 7: LONG -TERM DEBT
A. General Long -Term Debt
The following is a summary of changes in general long -term debt:
BALANCE BALANCE
OUTSTANDING OUTSTANDING
ORIGINAL INTEREST OCTOBER 1, DURING YEAR SEPTEMBER 30,
AMOUNT RATE 1998 ISSUED RETIRED 1999
General
Obligation Bonds
1962 Series $ 301,000
1987 Series 454,000
1992 Series 620,000
1998 Series 4,930,000
Certificates
of Obligation
1990 Series
General
Obligation
Refunding Bonds
1995 Series
850,000
3.63%
$ 37,000 $ -
$ 13,000
$ 24,000
6.2-8.3
90,000 -
45,000
45,000
5.2-7.2
520,000 -
25,000
495,000
4.37 -5.375
4,930,000 -
140,000
4,790,000
5,577,000 -
223,000
5,354,000
7-9.0
275,000 -
60,000
215,000
447,000 3.75 -5.00
TOTAL GENERAL OBLIGATION,
CERTIFICATES OF OBLIGATION,
AND GENERAL OBLIGATION
REFUNDING BONDS
324,000 - 55,770 268,230
$6,176,000 $ - $338,770 $5,837,230
23
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1999
NOTE 7: LONG -TERM DEBT (CONTINUED)
A. General Long -Term Debt (Continued)
BALANCE
OUTSTANDING
OCTOBER 1,
1998 ADDITIONS
BALANCE
OUTSTANDING
SEPTEMBER 30,
DEDUCTIONS 1999
Compensated Absences Payable
$216,905 $ -
$30,112
$186,793
Salary Reserve
- 46,558
-
46,558
$216,905 $46,558
$30,112
$233,351
GENERAL
OBLIGATION
GENERAL
YEAR ENDED
REFUNDING
OBLIGATION
CERTIFICATE OF
SEPTEMBER 30,
BONDS
BONDS
OBLIGATION
2000
$ 38,661
$ 504,479
$ 78,231
2001
91,265
452,635
73,519
2002
74,834
440,722
88,081
2003
48,200
463,484
-
2004 -2008
88,128
2,349,522
-
Thereafter
-
3,872,886
-
TOTALS
$341,088
$8,083,728
$239,831
Principal
$268,230
$5,354,000
$215,000
Interest
72,858
2,729,728
24,831
TOTALS
$341,088
$8,083,728
$239,831
B. Proprietary
Long -Term Debt
The following is a summary
of changes in proprietary long -term debt:
BALANCE
BALANCE
OUTSTANDING
OUTSTANDING
ORIGINAL
INTEREST OCTOBER 1,
SEPTEMBER 30,
AMOUNT
RATE 1998 ISSUED RETIRED
1999
Revenue Bonds
1973 Series
$ 165,000
5.75 -6.10% $ 45,000 $ -
$ 45,000
$ -
1987 Series
1,020,000
6.30 -8.30 855,000 -
35,000
820,000
$ 900,000 $ -
$ 80,000
$820,000
24
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1999
NOTE 7: LONG -TERM DEBT (CONTINUED)
B. Proprietary Long -Term Debt (Continued)
Certificates of
Obligation
1992 Series
General
Obligation
Refunding Bonds
1995 Series
Public Facility
BALANCE BALANCE
OUTSTANDING OUTSTANDING
ORIGINAL INTEREST OCTOBER 1, SEPTEMBER 30,
AMOUNT RATE 1998 ISSUED RETIRED 1999
$ 200,000 5.00 -7.00% $ 150,000 $ -
1,253,000 3.75 -5.00 $ 896,000 $ -
$ 10,000
$154,230
$140,000
$741,770
Loan (HUD) 142,000 5.00 $ 72,000 $ - $ 5,000 $ 67,000
Note Payable 273,000 7.60 $ 124,191 $ - $ 27,700 $ 96,491
The annual requirements to amortize all debt outstanding as of September 30, 1999, including
interest payments, are as follows:
25
GENERAL
OBLIGATION
CERTIFICATES
PUBLIC
YEAR ENDED
REFUNDING
REVENUE
OF
FACILITY
NOTES
SEPTEMBER 30,
BONDS
BONDS
OBLIGATION
LOAN
PAYABLE
2000
$228,924
$ 93,375
$ 17,890
$ 8,350
$ 37,212
2001
266,444
90,750
17,380
8,100
37,212
2002
75,617
178,125
66,840
7,850
37,213
2003
90,493
167,500
63,480
7,600
-
2004
82,926
159,063
-
7,350
-
2005 -2009
79,063
426,312
-
33,000
-
Thereafter
-
-
-
18,900
-
TOTALS
$823,467
$1,115,125
$165,590
$91,150
$111,637
Principal
$741,770
$ 820,000
$140,000
$67,000
$ 96,492
Interest
81,697
295,125
25,590
24,150
15,145
TOTALS
$823,467
$1,115,125
$165,590
$91,150
$11 1,637
25
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1999
NOTE 7: LONG -TERM DEBT (CONTINUED)
B. Proprietary Long -Term Debt (Continued)
Bonded debt of the City consists of various series of general obligation bonds, revenue bonds,
certificates of obligation public facility loan (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 1/12" the principal and 1/61'
the interest requirements of the next fiscal year. Certificates of obligation are payable from a levy
of ad valorem taxes upon all taxable property within the City, and are further payable from certain
net revenues derived from the operation of the City's combined water and sewer systems after
payments of first lien revenue bonds. The public loan is payable from gross revenue derived from
operations of the water and sewer systems and has equal status with first lien revenue 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, 1999, outstanding general obligation bonds of $1,010,000 are considered to
be defeased. These are analyzed by fund types as follows:
Water and Sewer Fund
General Long -Term Debt Group
NOTE 8: INTERFUND ASSETS /LIABILITIES
$ 741,770
268,230
$1,010,000
Following is a summary of amounts due from/ due to primary government as of September 30, 1999:
26
DUE FROM
DUE TO
OTHER FUNDS
OTHER FUNDS
General Fund
$ -
$401,224
Special Revenue Funds
Park Fund
57,640
-
1998 FEMA
-
47,169
Tax Increment Financing
31,995
-
Police Department Forfeitures
-
16,799
Debt Service
-
159,061
Capital Projects
279,508
-
Enterprise Funds
-
281,483
Water and Sewer System
510,329
-
SAFES
97,510
-
Internal Service Fund
-
71,246
TOTALS
$976,982
$976,982
26
CITY OF SCHERTZ, TEXAS
_NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1999
NOTE 8: INTERFUND ASSETS /LIABILITIES (CONTINUED)
Following is a summary of amounts due to /due from primary government and discretely presented
component units:
DUE FROM DUE TO
General Fund $32,600 $
The Library 10,606 -
Schertz Development Foundation - 3,117
Schertz Economic Development Corporation - 40,089
TOTALS $43,206 $43,206
NOTE 9: 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, 1999, is as follows:
Operating Revenues
Operating Expenses, Exclusive of Depreciation
and Amortization
Depreciation and Amortization
Operating Income
Other Income (Expense)
NET INCOME
Total Assets
Total Equity
Working Capital
Additions to Fixed Assets
Outstanding Debt
NOTE 10: CONTRIBUTED CAPITAL
WATER /SEWER SAFES TOTAL
$ 3,250,589 $ 806,873 $ 4,057,462
(2,145,249) (859,972) (3,005,221)
(341,063) (40,456) (381,519)
764,277 (93,555) 670,722
32,177 13,218 45,395
$ 796,454 $ (80,337) $ 716,117
$10,500,061 $1,481,307 $11,981,368
$ 7,902,602 $1,438,619 $ 9,341,221
$ 3,047,016 $ 385.476 $ 3,432,492
$ 499,046
$
4,157 $
503,203
$ 1,865,262
$
- $
1,865,262
During the year, contributed capital increased by the following amounts:
Depreciation on Contribution
Contributed Capital - October 1
CONTRIBUTED CAPITAL - SEPTEMBER 30
WATER AND INTERNAL
SEWER SAFES SERVICE
FUND FUND FUND TOTAL
$ (138,106) $ - $ - $ (138,106)
3,964,968 226,769 63,577 4,255,314
$3,826,862 $226,769 $63,577 $4,117,208
27
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1999
NOTE 11: OPERATING TRANSFERS
Operating transfers are comprised as follows:
PRIMARY GOVERNMENT
IN
OUT
General Fund
$ 4,800
$681,232
Water and Sewer Fund
-
24,774
Debt Service Fund
258,785
-
SAFES Fund
Special Revenue Funds
150,562
4,800
Capital Project Funds
296,659
-
TOTALS
$710,806
$710,806
PRIMARY GOVERNMENT AND COMPONENT UNITS
IN
OUT
General Fund
$ -
$ 13,059
Debt Service Fund
392,189
-
Schertz Economic Development Corporation
-
392,189
Library Fund
13,059
-
TOTALS
$405,248
$405,248
NOTE 12: SEGMENT INFORMATION - COMPONENT UNITS
Segment Information for component units is as follows:
Revenues
Expenditures
Excess of Revenues Over Expenditures
Other Financing (Uses)
Excess of Revenues Over
Expenditures and Other
Financing Uses
TOTAL ASSETS
NOTE 13: DEFICIT RETAINED EARNINGS
SCHERTZ
ECONOMIC SCHERTZ
DEVELOPMENT THE DEVELOPMENT
CORPORATION LIBRARY FOUNDATION TOTAL
$ 622,810 $ 9,244
- 3,986
622,810 5,258
(392,189) 13,059
$230,621
$ 280,003
$18,317
$33,499
$ 4,286 $ 636,340
9,361 13,347
(5,075) 622,993
(379,130)
$ (5,075)
$243.863
$80,613
$394,115
For the year ended September 30, 1999, the Internal Service Fund has a deficit retained earnings
balance of $66,411. This occurred again because sufficient transfers were not made from other funds
to supplement revenue in order to exceed expenditures. Transfers from other funds will be adjusted in
1999 to offset this deficit balance.
28
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1999
NOTE 14: PENSION PLAN
Plan Description
The City provides pension benefits for all of its full -time employees through a non - traditional, joint
contributory, defined benefit plan in the state -wide Texas Municipal Retirement System (TMRS), one of
717 administered by TMRS, an agent multiple - employer public employee retirement system.
Benefits depend upon the sum of the employee's contributions to the plan, with interest, and the City -
financed monetary credit, 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 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 effective
date. At retirement, the benefit is calculated as if the sum of the employee's accumulated
contributions with interest and the employer- financed monetary credits with interest were used to
purchase an annuity.
Members can retire at ages 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 ratio is currently 1 '/2 to 1, both
as adopted by the governing body of the City. Under the state law governing TMRS, the actuary
annually determines the City contribution rate. 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 become effective. The prior service contribution rate amortizes the unfunded
(overfunded) actuarial liability (asset) over the remainder of the plan's 25 -year amortization period.
When the City periodically adopts updated service credits and increases its annuities in effect, the
increased unfunded actuarial liability is to be amortized over a new 25 -year period. The unit credit
actuarial cost method is used for determining the City contribution rate. Both the employees and the
City make contributions monthly. 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, 1998 valuation is effective for
rates beginning January 2000)
29
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1999
NOTE 14: PENSION PLAN (CONTINUED)
Schedule of Actuarial Liabilities and Funding Progress
Actuarial Valuation Date
Actuarial Value of Assets
Actuarial Accrued Liability
Percentage Funded
Unfunded (Over - Funded) 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 the Period
December 31, 1998
$1,296,918
$2,434,873
53.3%
$1,137,955
$3,158,499
36.0%
$227,548
227,548
227,548
S -
Trend Information
The five year historical trend information is being developed prospectively. The information for the last
five years is as follows:
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
ACTUARIAL VALUATION DATE
DECEMBER 31,
1998 1997 1996 1995 1994
53.26% 55.94% 50.75% 47.05% 36.51%
36.03 28.08 25.09 30.97 30.18
7.20 5.28 5.46 5.09 4.97
30
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1999
NOTE 14: PENSION PLAN (CONTINUED)
Actuarial Assumptions
Actuarial Cost Method
Amortization Method
Remaining Amortization Period
Asset Valuation Method
Investment Rate of Return
Projected Salary Increases
Includes Inflation at
Cost -of- Living Adjustments
NOTE 15: PRIOR PERIOD ADJUSTMENT
Unit Credit
Level Percent of Payroll
25 years
Market Related
8%
None
None
None
In fiscal year 1998, the SAFES Fund recorded income of $ 169,858 as a transfer in and an increase in
assets as construction in progress. For the year ended September 30 1999, that transfer was
determined to be incorrect. Therefore, the prior period adjustment is the reversal of the previous year's
transaction.
NOTE 16: RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of
assets; errors and omissions; injuries to employees; and natural disasters. During October 1991, the
City was unable to obtain insurance at a cost it considered economically justifiable. In October 1991,
the City entered into a contractual agreement 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 Intergovernmental Risk Pool has published its own financial report for the
year ended September 30, 1999, which can be obtained from the Texas Municipal League.
31
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1999
NOTE 17: COMMITMENTS AND CONTINGENCIES
Vehicles owned by the City that are older than four (4) years are covered only by liability insurance.
The City has designated $45,000 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, 1999.
The City entered into one contract for computer hardware and training and a second contract for
software. The total estimated cost of the installation is $405,000. As of September 30, 1999,
approximately $280,000 of the two (2) contracts had been installed and billed.
In fiscal year 1998, the City began construction on the emergency services buildings project which was
financed by a bond issue. This construction is reported in the Capital Projects Fund. As of September
30, 1999, the City had been billed approximately $2,900,00 of the total $3,865,206 contract.
The City entered into an agreement with the City of Seguin to create a nonprofit corporation, the
Schertz /Seguin Local Government Corporation, for the purpose of acquiring an additional water source.
The corporation will be purchasing 1,158 acres. The estimated cost to the City for the land is
$650,000. As of September 30, 1999, the City had advanced funds to the corporation totaling
$742,000.
The City contracted with two (2) entities for the lease of ground water. One contract calls for
payments of $17,000 per year and expires on December 31, 2000. The other contract requires a
payment of $17,442 per year and expires on December 31, 2001.
NOTE 18: YEAR 2000 ISSUES
The City has entered into contracts totaling $405,000 for computer hardware, training, and software to
address its year 2000 issues. As of February 10, 2000, the City was in the.remediation stage for its
water and sewer fund. All other areas had reached the validation /testing stage in implementing its year
2000 compliant system. However, completion of the remaining necessary stages (validation and
testing for the water and sewer systems) is not a guarantee that systems and equipment will be year
2000 compliant.
32
COMBINING, INDIVIDUAL FUND AND
ACCOUNT GROUP STATEMENTS AND SCHEDULES
33
(This Page Intentionally Left Blank)
34
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.
35
CITY OF SCHERTZ, TEXAS
GENERAL FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 1999 AND 1998
ASSETS
SEPTEMBER 30,
1999 1998
Cash and Cash Equivalents $3,040,504 $2,533,399
Accounts Receivable 81,921 51,992
Delinquent Taxes Receivable (Net of Allowances) 90,241 91,164
Due from Other Funds - 175,501
Due from Component Units 32,600 -
Inventory of Supplies, at Cost 16,252 9,529
TOTAL ASSETS $3,261,518 $2,861,585
LIABILITIES AND FUND BALANCES
LIABILITIES
Vouchers Payable
$ 80,728 $ 59,406
Accrued Salaries
46,558 -
Due to Other Funds
401,224 -
Deferred Revenue
90,241 91,164
Total Liabilities
618,751 150,570
FUND BALANCES
Reserved for Forfeited Property
19,814
49,186
Reserved for Inventory of Supplies
16,252
9,018
Unreserved
Designated for Economic Development
18,821
18,821
Designated for Equipment Replacement
16,144
16,144
Designated for Self- Insurance
45,000
45,000
Designated for Animal Control
121,710
-
Designated for Street Repair
69,562
-
Undesignated
2,335,464
2,572,846
Total Fund Balances
2,642,767
2,71 1,015
TOTAL LIABILITIES AND FUND BALANCES $3,261,518 $2,861,585
(See Accompanying Notes to Financial Statements)
36
CITY OF SCHERTZ, TEXAS
GENERAL FUND
(See Accompanying Notes to Financial Statements)
37
1999
VARIANCE
FAVORABLE
1998
BUDGET
ACTUAL
(UNFAVORABLE)
ACTUAL
REVENUES
Taxes
$3,110,811
$3,565,950
$ 455,139
$3,015,347
Licenses and Permits
526,300
680,316
154,016
610,943
Charges for Services
602,563
558,904
(43,659)
472,366
Fines and Forfeitures
351,750
369,255
17,505
343,943
Other Revenue
140,050
677,932
537,882
400,090
Total Revenues
4,731,474
5,852,357
1,120,883
4,842,689
EXPENDITURES
Current
General Government
1,239,304
1,306,500
(67,196)
1,063,835
Public Safety
1,951,787
2,023,379
(71,592)
1,702,684
Streets and Parks
598,521
472,408
126,113
408,461
Health
153,512
142,287
11,225
127,065
Recreation
234,242
274,865
(40,623)
260,004
Economic Development
85,734
85,845
(111)
76,491
Capital Outlay
359,791
922,721
(562,930)
201,778
Debt Service
3,109
3,109
-
-
Total Expenditures
4,626,000
5,231,114
(605,114)
3,840,318
Excess of Revenues over
Expenditures
105,474
621,243
515,769
1,002,371
OTHER FINANCING SOURCES (USES)
Operating Transfers - In
-
4,800
4,800
(300,084)
Operating Transfers - (Out)
(196,828)
(681,232)
(484,404)
-
Operating Transfer to Component
Unit
-
(13,059)
(13,059)
-
Total Other Financing Sources
(Uses)
(196,828)
(689,491)
(492,663)
(300,084)
Excess (Deficiency) of Revenues
and Other Financing Sources
Over (Under) Expenditures and
Other Financing (Uses)
$ (91,354)
(68,248)
$ 23,106
702,287
FUND BALANCES - OCTOBER 1
2,711,015
2,038,728
RESIDUAL EQUITY TRANSFER (OUT)
-
(30,000)
FUND BALANCES - SEPTEMBER 30
$2,642,767
$2,711,015
(See Accompanying Notes to Financial Statements)
37
CITY OF SCHERTZ, TEXAS
GENERAL FUND
SCHEDULE OF REVENUES COMPARED TO BUDGET
YEAR ENDED SEPTEMBER 30, 1999
Charges for Services
Utility Administration
265,000
1999
-
$ 265,000
Swimming Pool
39,150
33,942
VARIANCE
34,511
Animal Shelter
18,500
21,760
FAVORABLE
1998
Building Rental
BUDGET
ACTUAL
(UNFAVORABLE)
ACTUAL
Library and Fire
117,913
REVENUES
(1,227)
108,511
Other
150,200
Taxes
(37,983)
29,243
Total Charges for Services
602,563
Ad Valorem
$1,857,011
$1,932,631
$ 75,620
$1,582,244
Tax Penalty
12,500
30,673
18,173
17,527
City Sales Tax
902,000
1,219,983
317,983
1,069,112
Utility Franchise
334,800
378,341
43,541
342,143
Other
4,500
4,322
(178)
4,321
Total Taxes
3,110,811
3,565,950
455,139
3,015,347
Licenses and Permits
526,300
680,316
154,016
$ 610,943
Charges for Services
Utility Administration
265,000
265,000
-
$ 265,000
Swimming Pool
39,150
33,942
(5,208)
34,511
Animal Shelter
18,500
21,760
3,260
21,587
Building Rental
11,800
9,299
(2,501)
13,514
Library and Fire
117,913
116,686
(1,227)
108,511
Other
150,200
112,217
(37,983)
29,243
Total Charges for Services
602,563
558,904
(43,659)
$ 472,366
Fines and Forfeitures
351,750
369,255
17,505 -
$ 343,943
Other Revenue
Reimbursements
26,500
10,582
(15,918)
$ 37,056
Proceeds from Litigation
-
-
-
2,144
Cibolo Creek Municipal Authority
6,200
5,954
(246)
6,153
Interest
65,000
152,561
87,561
110,552
Sale of Merchandise
5,700
25,497
19,797
643
Sale of Police Forfeitures
-
-
-
2,100
Miscellaneous
10,350
13,238
2,888
20,603
State and Federal Grants
26,300
470,100
443,800
220,839
Total Other Revenue
140,050
677,932
537,882
$ 400,090
TOTAL REVENUES
$4,731,474
$5,852,357
$1,120,883
$4,842,689
(See Accompanying Notes to Financial Statements)
38
CITY OF SCHERTZ, TEXAS
GENERAL FUND
SCHEDULE OF EXPENDITURES COMPARED TO BUDGET
YEAR ENDED SEPTEMBER 30, 1999
CURRENT
General Government
City Council
City Manager
Tax
Planning and Zoning
Legal
Municipal Court
Municipal Building
General Administration
Finance
Other - Unclassified
Total General Government
Public Safety
Police Department
Fire Department
Inspection
Total Public Safety
Streets and Parks
Streets
Parks
Total Streets and Parks
Health
Animal Control
Recreation
Swimming Pool
Library
Total Recreation
Economic Development
CAPITAL OUTLAY
DEBT SERVICE
Interest
TOTAL EXPENDITURES
73,798
160,444
234,242
85,734
359,791
66,325
208,540
274,865
85,845
922,721
3,109 3,109
$4,626,000 $5,231,114
(See Accompanying Notes to Financial Statements)
39
7,473
(48,096)
(40,623)
(111)
88,664
171,340
260,004
76,491
(562,930) 201,778
$(605,114) $3,840,318
1999
VARIANCE
FAVORABLE
1998
BUDGET
ACTUAL
(UNFAVORABLE)
ACTUAL
$ 14,750
$ 14,345
$ 405
$ 13,757
127,115
137,187
(10,072)
127,127
105,070
105,319
(249)
94,901
151,158
128,939
22,219
102,866
52,500
100,266
(47,766)
77,220
172,338
149,430
22,908
102,682
158,469
174,332
(15,863}
139,303
88,234
91,563
(3,329)
96,953
138,480
157,265
(18,785)
128,916
231,190
247,854
(16, 664)
180,110
1,239,304
1,306,500
(67,196)
1,063,835
1,251,323
1,290,320
(38,997)
1,125,683
570,022
591,026
(21,004)
479,383
130,442
142,033
(11,591)
97,618
1,951,787
2,023,379
(71,592)
1,702,684
501,814
372,134
129,680
319,894
96,707
100,274
(3,567)
88,567
598,521
472,408
126,113
408,461
153,512
142,287
11,225
127,065
73,798
160,444
234,242
85,734
359,791
66,325
208,540
274,865
85,845
922,721
3,109 3,109
$4,626,000 $5,231,114
(See Accompanying Notes to Financial Statements)
39
7,473
(48,096)
(40,623)
(111)
88,664
171,340
260,004
76,491
(562,930) 201,778
$(605,114) $3,840,318
(This Page Intentionally Left Blank)
40
SPECIAL REVENUE FUNDS
Special Revenue Funds account for the proceeds of specific revenue sources (other than
expendable trusts or for major capital projects) that are legally restricted to expenditure for
specified purposes.
Park Fund - will 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 - will 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 - will account for the proceeds of designated property taxes
to be used for the widening of Schertz Parkway.
1998 FEMA Fund - will 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 - will account for proceeds of hotel occupancy taxes to be
used strictly for those kinds of programs that promote the tourism industry.
Library Grant Fund - will 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 - will account for revenue received from drug related
cases in conjunction with other law enforcement agencies.
41
CITY OF SCHERTZ, TEXAS
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 1999
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1998)
ASSETS
Cash and Cash Equivalents
Account Receivable
Due from Other Funds
TOTAL ASSETS
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts Payable
Due to Other Funds
Total Liabilities
FUND BALANCES
Unreserved
Designated
TOTAL LIABILITIES
AND FUND BALANCES
PARK
FUND
$139,054
57,640
$196,694
RECYCLING
FUND
$40,462
$40,462
TAX
INCREMENT
FINANCING
$ 72,782
31,995
$104,777
$ - $ 1,677 $ -
1,677 -
196,694
$196,694
(See Accompanying Notes to Financial Statements)
42
38,785
$40,462
104,777
$104,777
HOTEL LIBRARY
1998 OCCUPANCY GRANT
FEMA TAX FUND
POLICE
DEPARTMENT
FORFEITURES
FUND
TOTALS
1999 1998
$199,931 $119,534 $852 $27,620 $600,235 $314,692
- - - - - 16,555
- - - 89,635 137,247
$199,931 $119,534 $852 $27,620 $689,870 $468,494
$ 90,934 $ - $ - $ - $ 96,611 $ 1,677
47,169 - - 16,799 63,968 16,799
138,103 - - 16,799 156,579 $ 18,476
61,828
119,534
852
10,821
533,291
450,018
$199,931
$119,534
$852
$27,620
$689870
$468,494
(See Accompanying Notes to Financial Statements)
43
REVENUES
Other
Grant
Developer Fees
Property Forfeitures
Donations
Tax Revenue
Sale of Recycling /Materials
Interest
Total Revenues
EXPENDITURES
General and Administrative
Streets and Parks
Contractual Services
Infrastructure
Total Expenditures
Excess (Deficit) of Revenues
Over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers In
Transfers Out
Total Other Financing Sources (Uses)
Excess (Deficit) of Revenues and
Other Financing Sources Over
(Under) Expenditures and Other
Financing Uses
FUND BALANCES - OCTOBER 1
RESIDUAL EQUITY TRANSFER IN (OUT)
FUND BALANCES - SEPTEMBER 30
(See Accompanying Notes to Financial Statements)
GUADCO TAX
PARK RECYCLING MUD #2 INCREMENT
FUND FUND FUND FINANCING
69,107 - -
250 - - -
- - - 69,816
- 7,839 - -
6,380 - - 3,250
75,737 7,839 - 73,066
201 - - 297
- 6,057 - 87,795
49,952 - - -
50,153 6,057 - 88,092
25,584 1, 782 - 1( 5,026)
2,707 30,682 - -
2,707 30,682 - -
28,291 32,464 - (15,026)
168,403 6,321 21,617 119,803
(21,617) -
$196,694 $38,785 $ - $104,777
44
POLICE
HOTEL GUADCO LIBRARY DEPARTMENT
1998 OCCUPANCY MUD #1 GRANT FORFEITURES TOTALS
FEMA TAX FUND FUND FUND 1999 1998
$313,482 $ - $
35,750
5,267 5,765 _
318,749 41,515 _
371 8,243
224,488 -
129,838 -
354,697 8,243
(35,948) 33,272
- $ - $ - $313,482
$ 27,128
- - - 69,107
100,850
- - 10,329 10,329
55,541
- - - 250
600
- - - 105,566
153,579
- - - 7,839
15,868
- 949 21,611
9,308
- 11,278 528,184
362,874
- - 1,047
18,545 -
18,545 1,047
z (18,545) 10,231
10,159
11,681
224,488
-
1 12,397
113,025
179,790
67,573
526,834
192,279
1,350 170,595
97,776
-
- 19,397 -
150,562
33,659
-
(4,800)
- - -
(4,800)
-
97,776
(4,800)
- 19,397 -
145,762
33,659
61,828
28,472
- 852 10,231
147,112
204,254
-
91,062
42,222 - 590
450,018
215,764
-
-
(42,222) - -
(63,839)
30,000
$ 61,828
$119,534
$ - $ 852 $10,821
$533,291
$450,018
(See Accompanying Notes to Financial Statements)
45
(This Page Intentionally Left Blank)
46
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.
CfA
CITY OF SCHERTZ, TEXAS
DEBT SERVICE FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 1999 AND 1998
ASSETS
Cash and Cash Equivalents
Delinquent Taxes Receivable (Net of Allowances)
TOTAL ASSETS
LIABILITIES AND FUND BALANCES
LIABILITIES
Due to Other Funds
Deferred Revenue
Ad Valorem Taxes
Total Liabilities
FUND BALANCES
Reserved for Debt Service
TOTAL LIABILITIES AND FUND BALANCES
SEPTEMBER 30,
1999 1998
$329,505
10,677
$340,182
$300,855
15,099
$315,954
$159,061 $128,868
10,677
169,738
170,444
$340,182
(See Accompanying Notes to Financial Statements)
48
15,099
143,967
171,987
$315,954
CITY OF SCHERTZ, TEXAS
DEBT SERVICE FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
YEAR ENDED SEPTEMBER 30, 1999
(See Accompanying Notes to Financial Statements)
49
1999
VARIANCE
FAVORABLE
1998
BUDGET
ACTUAL
(UNFAVORABLE)
ACTUAL
REVENUES
Interest Income
$ -
$ 10,094
$ 10,094
$ 44,710
EXPENDITURES
Debt Service
Bond Principal
98,414
338,770
(240,356)
179,000
Bond Interest
98,414
321,185
(222,771)
251,790
Fiscal Agent Fees
-
2,656
(2,656)
4,133
Total Expenditures
196,828
662,611
(465,783)
434,923
Excess of Revenues Over
(Under) Expenditures
(196,828)
(652,517)
(455,689)
(390,213)
OTHER FINANCING SOURCES
Operating Transfers In
196,828
258,785
61,957
591,791
Operating Transfer from
Component Unit
-
392,189
392,189
-
Total Other Financing Sources
196,828
650,974
454,146
591,791
Excess (Deficiency) of
Revenues and Other
Financing Sources Over
(Under) Expenditures
$ -
(1,543)
$ (1,543)
201,578
FUND BALANCES - OCTOBER 1
171,987
(29,591)
FUND BALANCES -
SEPTEMBER 30
$170,444
$ 171,987
(See Accompanying Notes to Financial Statements)
49
(This Page Intentionally Left Blank)
50
CAPITAL PROJECTS FUNDS
The Capital Projects Fund accounts for financial resources to be used for the acquisition or
construction of major capital facilities (other than those financed by proprietary fund
types.)
51
CITY OF SCHERTZ, TEXAS
CAPITAL PROJECTS FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 1999 AND 1998
ASSETS
Cash and Cash Equivalents
Due from Other Funds
TOTAL ASSETS
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts Payable
Due to Other Funds
Total Liabilities
FUND BALANCES
Unreserved
Designated
TOTAL LIABILITIES AND FUND BALANCES
TOTALS
1999 1998
$2,833,030 $4,846,221
279,508 -
$3,112,538 $4,846,221
$1,035,262 $ 28,003
- 38,790
1,035,262 66,793
2,077,276 4,779,428
$3,112,538 $4,846,221
(See Accompanying Notes to Financial Statements)
52
CITY OF SCHERTZ, TEXAS
CAPITAL PROJECTS FUND
COMPARATIVE STATEMENTS OF REVENUE EXPENDITURES AND CHANGES IN FUND BALANCES
YEARS ENDED SEPTEMBER 30 1999 AND 1998
REVENUES
Other
Interest Income
Other
Total Revenues
EXPENDITURES
Bond Issue Costs
General and Administrative
Professional and Contractual Services
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
OTHER FINANCING SOURCES (USES)
Proceeds from Bond Issue
Operating Transfers In (Out)
Total Other Financing Sources (Uses)
Excess (Deficiency) of Revenues and
Other Financing Sources Over (Under)
Expenditures and Other Financing (Uses)
FUND BALANCES - BEGINNING OF YEAR
PRIOR PERIOD ADJUSTMENT
FUND BALANCES - BEGINNING OF YEAR
AS ADJUSTED
FUND BALANCES - END OF YEAR
TOTALS
1999 1998
$ 191,883 $ 183,191
- 631
191,883 183,822
53,943
988 3,613
38,109 151,098
3,321,455 471,464
3,360,552 680,118
(3,168,669) (496,296)
- 4,930,000
296,659 (169,858)
296,659 4,760,142
(2,872,010) 4,263,846
4,779,428 515,582
169,858 -
4,949,286 515,582
$ 2,077,276 $4,779,428
(See Accompanying Notes to Financial Statements)
53
(This Page Intentionally Left Blank)
54
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.
55
CITY OF SCHERTZ, TEXAS
ENTERPRISE FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 1999
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1998)
FIXED ASSETS
Land and Improvements
WATER AND
-
160,521
160,521
Buildings
SEWER
26,656
TOTALS
222,380
Improvements Other than
SYSTEM
SAFES
1999
1998
Buildings
ASSETS
7,642
10,800,124
10,367,569
Machinery, Equipment,
CURRENT ASSETS
and Vehicles
Cash and Cash Equivalents
$ 1,881,979
$228,330
$ 2,110,309 $
1,682,654
Accounts Receivable (Net of
-
-
169,858
Totals
Allowances)
401,756
85,698
487,454
479,739
Accounts Receivable - Other
742,798
-
742,798
-
Due from Other Funds
510,329
97,510
607,839
113,878
Inventory of Supplies, at Cost
90,811
16,626
107,437
115,560
Total Current Assets
3,627,673
428,164
4,055,837
2,391,831
RESTRICTED ASSETS
$1,375 and $1,328 for 1999
Cash and Cash Equivalents
1,266,664
-
1,266,664
2,442,551
FIXED ASSETS
Land and Improvements
160,521
-
160,521
160,521
Buildings
195,724
26,656
222,380
222,380
Improvements Other than
Buildings
10,792,482
7,642
10,800,124
10,367,569
Machinery, Equipment,
and Vehicles
990,339
563,639
1,553,978
1,483,329
Construction in Progress
-
-
-
169,858
Totals
12,139,066
597,937
12,737,003
12,403,657
Less: Accumulated Depreciation
6,607,572
389,109
6,996,681
6,490,924
Total Fixed Assets
5,531,494
208,828
5,740,322
5,912,733
OTHER ASSETS
Organizational Costs (Net Of
Accumulated Amortization of
$1,375 and $1,328 for 1999
and 1998)
525
-
525
572
Bond Issuance Costs (Net of
Accumulated Amortization of
$15,004 and $11,253 for 1999
and 1998)
20,006
-
20,006
23,757
Deferred Loss on Early Retirement
of Debt (Net of Accumulated
Amortization of $40,276 and
$30,207 for 1999 and 1998)
53,699
-
53,699
63,768
Total Other Assets
74,230
-
74,230
88,097
TOTAL ASSETS
$10,500,061
$636,992
$11,137,053
$10,835,212
(See Accompanying Notes to Financial Statements)
56
CITY OF SCHERTZ, TEXAS
ENTERPRISE FUND
COMBINING BALANCE SHEET
SEPTEMBER 30,1999
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1998)
EQUITY
Contributed Capital
WATER AND
226,769
4,053,631
4,191,737
Retained Earnings - Reserved for
SEWER
TOTALS
SYSTEM
SAFES
1999
1998
LIABILITIES AND EQUITY
Equipment Replacement
CURRENT LIABILITIES
and Capital Improvements
40,000
-
40,000
Vouchers Payable
$ 211,998
$ 1,406
$ 213,404
$ 199,510
Note Payable
29,821
-
29,821
27,700
Due to Other Funds
281,483
-
281,483
188,982
Accrued Salaries
9,582
8,753
18,335
-
Salary Reserve
9,582
8,753
18,335
-
Compensated Absences Payable
38,191
23,776
61,967
54,106
Total Current Liabilities
580,657
42,688
623,345
470,298
CURRENT LIABILITIES PAYABLE
FROM RESTRICTED ASSETS
Customer Deposits
166,597
-
166,597
208,164
Revenue Bonds
35,000
-
35,000
80,000
Certificates of Obligation
10,000
-
10,000
10,000
Refunding Bonds
198,314
-
198,314
185,000
Public Facility Loan
5,000
-
5,000
4,000
Accrued Interest
14,764
-
14,764
17,345
Total Current Liabilities
Payable from Restricted
Assets
429,675
-
429,675
504,509
NONCURRENT LIABILITIES
Revenue Bonds Payable (Less
Current Maturities)
785,000
-
785,000
820,000
Certificate of Obligation Payable
(Less Current Maturities)
130,000
-
130,000
140,000
Refunding Bonds (Less
Current Maturities)
543,456
-
543,456
711,000
Public Facility Loan
62,000
-
62,000
68,000
Note Payable (Less Current
Maturities)
66,671
-
66,671
96,491
Total Noncurrent Liabilities
1,587,127
-
1,587,127
1,835,491
Total Liabilities
2,597,459
42,688
2,640,147
2,810,298
EQUITY
Contributed Capital
3,826,862
226,769
4,053,631
4,191,737
Retained Earnings - Reserved for
Revenue Bond Retirement
412,488
-
412,488
412,488
Equipment Replacement
and Capital Improvements
40,000
-
40,000
40,000
Unreserved
3,623,252
367,535
3,990,787
3,380,689
Total Equity
7,902,602
594,304
8,496,906
8,024,914
TOTAL LIABILITIES
AND EQUITY
$10,500,061
$636,992
$11,137,053
$10,835,212
(See Accompanying Notes to Financial Statements)
57
OPERATING REVENUES
Fees Charged to Users
Reimbursements and Other
Total Operating Revenues
OPERATING EXPENSES
Personnel Services
Sewage Treatment
General and Administrative
Contractual Services
Supplies /Maintenance
Bad Debts
Total Operating Expenses
before Depreciation
Operating Income (Loss) before
Depreciation and Amortization
Depreciation and Amortization
Operating Income (Loss)
NONOPERATING REVENUES (EXPENSES)
Interest Income
Interest Expenses
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 AT BEGINNING
OF YEAR
PRIOR PERIOD ADJUSTMENT
RETAINED EARNINGS AT BEGINNING
OF YEAR AS ADJUSTED
Total
TRANSFERS OF EQUITY
RETAINED EARNINGS
AT END OF YEAR $4,075,740
(See Accompanying Notes to Financial Statements)
WATER AND
SEWER TOTALS
SYSTEM SAFES 1999 1998
$3,049,449 $804,610 $3,854,059 $3,999,657
201,140 2,263 _ 203,403 76,079
3,250,589 806,873 4,057,462 4,075,736
710,103 607,377
5 50, 647 -
265,000 7,800
408,209 84,914
208,670 117,039
2,620 42,842
1,317,480 964,145
550,647 503,139
272,800 272,800
493,123 360,430
325,709 255,101
45,462 30,734
2,145,249 859,972 3,005,221 2,386,349
1,105,340
479,169
626,171
177,434
(120,483)
56,951
683,122
(24,774)
658,348
138,106
796,454
3,215,447
3,215,447
4,011,901
63,839
58
(53,099)
1,052,241
1,689,387
40,456
519,625
345,403
(93,555)
532,616
1,343,984
13,218
190,652
223,279
-
(120,483)
(138,523)
13,218
70,169
84,756
(80,337)
602,785
1,428,740
-
(24,774)
129,169
(80,337
578,011
1,557,909
-
138,106
-
80,337
716,117
1,557,909
617,730
3,833,177
2,275,268
(169,858)
(169,858)
-
447,872
3,663,319
2,275,268
367,535
4,379,436
3,383,177
-
63,839
-
$367,535
$4,443,275
$3,833,177
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 from
Reimbursements and Other
Net Cash Provided by (Used
in) Operating Activities
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Operating Transfers Out to Other
Funds
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Acquisition and Construction of
Capital Assets
Principal Payments on Long -Term
Debt
Interest Paid on Long -Term Debt
Capital Advanced to Joint Venture
Capital Contributed for Capital
Assets
Net Cash Used in Capital and
Related Financing Activities
CASH FLOWS FROM INVESTING
ACTIVITIES
Interest on Investments
Net Increase (Decrease) in
Cash
CASH AND CASH EQUIVALENTS -
BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS -
END OF YEAR
CITY OF SCHERTZ, TEXAS
ENTERPRISE FUNDS
nF cncu m nwq - AI 1 PF
WATER AND
SEWER TOTALS
SYSTEM SAFES 1999 1998
$2,987,430 $813,450 $3,800,880 $ 4,091,592
(1,782,341) (280,948)
(685,209) (587,740)
201,140 2,263
721,020 (52,975)
(24,774) -
(499,046) (4,157)
(276,929) -
(123,064) -
(742,798) -
(2,063,289)
(1,272,949)
203,403
668,045
(2,418,410)
(958,137)
76,079
791,124
(24,774) 129,169
(503,203)
(276,929)
(123,064)
(742,798)
(855,163)
(278,729)
(147,049)
63,839
-
63,839
(43,461)
(1,577,998)
(4,157)
(1,582,155)
(1,324,402)
177,434
13,218
190,652
223,279
(704,318)
(43,914)
(748,232)
(180,830)
3,852,961
272,244
4,125,205
4,306,035
$3,148,643
$228,330
$3,376,973
$ 4,125,205
(Continued)
(See Accompanying Notes to Financial Statements)
M
CITY OF SCHERTZ, TEXAS
WATER AND
(See Accompanying Notes to Financial Statements)
60
SEWER
TOTALS
SYSTEM
SAFES
1999
1998
Comprised of
Current Assets
$1,881,979
$228,330
$2,110,309
$1,682,654
Restricted Assets
1,266,664
-
1,266,664
2,442,551
CASH AND CASH EQUIVALENTS -
END OF YEAR
$3,148,643
$228,330
$3,376,973
$4,125,205
RECONCILIATION OF OPERATING
INCOME TO NET CASH PROVIDED
BY OPERATING INCOME
Operating Income (Loss)
$ 626,171
$ (93,555)
$ 532,616
$1,355,030
Adjustments to Reconcile
Operating Income to Net
Cash Provided by Operating
Activities
Depreciation /Amortization
341,063
40,456
381,519
345,403
Depreciation Attributed to
Contributed Capital
138,106
-
138,106
138,106
Provision for Uncollectible
Accounts
2,620
-
2,620
(49,272)
(Increase) Decrease in the
Following Assets
Accounts Receivable
(62,018)
51,683
(10,335)
141,207
Inventory
8,123
-
8,123
(2,852)
Due from Other Funds
(442,371)
(2,532)
(444,903)
-
Increase (Decrease) in the
Following Liabilities
Vouchers Payable
14,598
(68,664)
(54,066)
64,012
Due to Other Funds
111,401
-
111,401
(1, 240,031)
Accrued Vacation
5,730
2,131
7,861
6,008
Accrued Salaries
9,582
8,753
18,335
-
Salary Reserve
9,582
8,753
18,335
-
Customers Deposits
(41,567)
-
(41,567)
33,513
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES
$ 721,020
$ (52,975)
$ 668,045
$ 791,124
(See Accompanying Notes to Financial Statements)
60
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.
61
(This Page Intentionally Left Blank)
62
CITY OF SCHERTZ, TEXAS
SCHEDULES OF GENERAL FIXED ASSETS - BY SOURCE
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
63
SEPTEMBER 30,
1999 1998
$ 997,173 $ 501,994
4,216,586
226,466
8,555,316
8,265,774
1,394,066
1,277,090
1,639,022
1,286,663
$16,802,163 $12,557,987
$ 3,325,592 $ 2,862,871
5,139,688
182,686
317,005
113,614
640,984
7,066,305
10,504
5,785
$16,802,163
1,818,233
182,686
317,005
113,614
180,984
7,066,305
10,504
5,785
$ 12,557,987
CITY OF SCHERTZ, TEXAS
SCHEDULES OF GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY
YEAR ENDED SEPTEMBER 30, 1999
64
BALANCE
BALANCE
OCTOBER 1,
SEPTEMBER 30,
1998
ADDITIONS
DEDUCTIONS 1999
General Government
$ 1,035,094
$ 726,775
$ - $ 1,761,869
Public Safety
Police
770,248
1,305,608
- 2,075,856
Fire
1,035,593
909,071
- 1,944,664
EMS
-
844,315
- 844,315
Inspection
27,210
-
- 27,210
Street and Park
Street
7,861,962
366,342
- 8,228,304
Pool
543,300
-
- 543,300
Parks
696,849
16,051
- 712,900
Health
Animal Control
271,915
-
- 271,915
Library
302,926
76,014
- 378,940
Economic Development Foundation
12,890
-
- 12,890
TOTALS
$12,557,987
$4,244,176
$ - $16,802,163
64
COMPONENTS OF GENERAL FIXED ASSETS
IMPROVEMENTS
OTHER THAN
LAND BUILDINGS BUILDINGS VEHICLES EQUIPMENT
$512,104 $ 623,236 $ 77,089 $ 6,676 $ 542,764
41,793 1,278,333 7,646 576,958 171,126
53,792 1,010,427 13,317 545,100 322,028
41,793 802,522 - - -
- - 139 18,031 9,040
108,333 400 7,618,819 168,099 332,653
- - 530,309 - 12,991
182,662 195,159 202,906 42,916 89,257
23,161 106,071 70,224 36,286 36,173
23,031 200,438 34,867 - 120,604
10,504 - - - 2,386
$997,173 $4,216,586 $8,555,316 $1,394,066 $1,639,022
65
(This Page Intentionally Left Blank)
..
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.
67
(This Page Intentionally Left Blank)
m
CITY OF SCHERTZ, TEXAS
DISCRETELY PRESENTED COMPONENT UNITS
COMBINING BALANCE SHEET
SEPTEMBER 30, 1999
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30 1998)
ASSETS
Cash and Cash Equivalents
Accounts Receivable
Due from Component Units
TOTAL ASSETS
LIABILITIES AND
FUND BALANCES
LIABILITIES
Due to Primary Government
Due to Component Units
Total Liabilities
FUND BALANCES
Unreserved
Designated
TOTAL LIABILITIES
AND FUND BALANCES
SCHERTZ
ECONOMIC SCHERTZ
DEVELOPMENT THE DEVELOPMENT TOTALS
CORPORATION LIBRARY FOUNDATION 1999 1998
$231,743 $22,893
$80,613
$335,249
$109,782
48,260 -
-
48,260
-
- 10,606
-
10,606
381
$280,003 $33,499
$80,613
$394,115
$110,163
$ 32,600 $ -
$ -
$ 32,600
$ 3,117
7.489 -
3,117
10,606
-
40,089 -
3,117
43,206
3,117
239,914
33,499
77,496
350,909
107,046
$280,003
$33,499
$80,613
$394,115
$110,163
.•
CITY OF SCHERTZ, TEXAS
DISCRETELY PRESENTED COMPONENT UNITS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
SEPTEMBER 30, 1999
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1998)
SCHERTZ
ECONOMIC SCHERTZ
DEVELOPMENT THE DEVELOPMENT TOTALS
CORPORATION LIBRARY FOUNDATION 1999 1998
-*kVL :111 *?
Taxes
$ 621,002
$ -
$ -
$ 621,002
$ 299,660
Other
Donations
-
6,736
-
6,736
5,472
Reimbursements
-
2,138
400
2,538
5,365
Interest
1,808
370
3,886
6,064
4,333
Total Revenues
622,810
9,244
4,286
636,340
314,830
EXPENDITURES
Current
Recreation
-
3,986
-
3,986
3,670
Economic Development
-
-
9,361
9,361
10,755
Total Expenditures
-
3,986
9,361
13,347
14,425
Excess (Deficiency)
of Revenues Over
Expenditures
622,810
5,258
(5,075)
622,993
300,405
OTHER FINANCING SOURCES
(USES)
Transfers from Primary
Government
-
13,059
-
13,059
-
Transfers to Primary
Government
(392,189)
-
-
(392,189)
(284,677)
Total Other Financing
Sources (Uses)
(392,189)
13,059
-
(379,130)
(284,677)
Excess (Deficit) of
Revenues and Other
Financing Sources Over
Expenditures and
Other Financing (Uses)
230,621
18,317
(5,075)
243,863
15,728
FUND BALANCES - OCTOBER 1
9,293
15,182
82,571
107,046
91,318
FUND BALANCES -
SEPTEMBER 30
$ 239,914
$33,499
$77,496
$ 350,909
$ 107,046
70
STATISTICAL INFORMATION
71
CITY OF SCHERTZ, TEXAS
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION TABLE 1
FISCAL
GENERAL
PUBLIC
STREETS
TOTAL (1)
YEAR
GOVERNMENT
SAFETY
AND PARKS
HEALTH
OTHER
EXPENDITURES
1990
$654,009
$ 796,823
$327,797
$ 56,150
$ 339,241
$2,174,020
1991
659,815
836,031
342,974
65,816
436,419
2,341,055
1992
689,082
843,582
352,093
66,646
393,138
2,344,541
1993
741,305
924,222
373,213
75,441
479,836
2,594,017
1994
744,801
978,121
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
(1) Includes General, Special Revenue and Debt Service Funds
72
CITY OF SCHERTZ, TEXAS
GENERAL GOVERNMENT REVENUES BY SOURCE TABLE 2
*Includes General, Special Revenue, and Debt Service Funds
* *Reclassification Among These Categories Performed in 1991
73
LICENSES
CHARGES
FINES
FISCAL
AND
FOR
AND
YEAR
TAXES
PERMITS
SERVICES
FORFEITURES
OTHER
TOTAL*
1990
$1,360,611
$ 53,045
$ 31,235
$145,830
$305,348
$1,896,069
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
3,671,516
680,316
558,904
379,584
1,100,315
6,390,635
*Includes General, Special Revenue, and Debt Service Funds
* *Reclassification Among These Categories Performed in 1991
73
(This Page Intentionally Left Blank)
74
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CITY OF SCHERTZ, TEXAS
ASSESSED AND ESTIMATED ACTUAL VALUE OF PROPERTY TABLE 4
76
FISCAL
ESTIMATED
LEVY
YEAR
ACTUAL
ASSESSMENT
ASSESSED
TAX
TAX
YEAR
ENDED
VALUES
PERCENTAGE
VALUATIONS
RATE
LEVY
1990
09 -30 -90
$376,676,293
100%
$287,272,356
.3183%
$ 914,388
1991
09 -30 -91
340,903,727
100
272,593,690
.3689
1,005,598
1992
09 -30 -92
269,351,284
100
268,170,123
.3889
1,042,914
1993
09 -30 -93
256,861,608
100
259,038,486
.4255
1,102,209
1994
09 -30 -94
264,286,116
100
258,766,426
.4684
1,212,063
1995
09 -30 -95
362,247,758
100
312,676,505
.4275
1,337,010
1996
09 -30 -96
346,130,091
100
334,122,763
.4072
1,360,548
1997
09 -30 -97
396,917,233
100
378,784,051
.3719
1,408,699
1998
09 -30 -98
452,163,752
100
450,199,212
.3554
1,600,008
1999
09 -30 -99
545,742,286
100
534,039,183
.3544
1,892,640
76
CITY OF SCHERTZ, TEXAS
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS TABLE 5
YEAR
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
*All rates shown are per $ 100 assessed valuation
"Year shown is the fiscal year of collection. Taxes
were levied the previous calendar year.
.4684
1.3095
.2995
COUNTY
CITY
SCHOOL
COUNTY
ROAD
.4072
1.4089
.2997
.0758
100%
100%
100%
100%
ASSESSMENT
ASSESSMENT
ASSESSMENT
ASSESSMENT
RATE*
RATE*
RATE
RATE
.3183 %
1.00561 %
.1418 %
.0977 %
.3689
1.20513
.2720
.0850
.3889
1.4777
.3599
.0850
.4255
1.4499
.3036
.0950
1999
*All rates shown are per $ 100 assessed valuation
"Year shown is the fiscal year of collection. Taxes
were levied the previous calendar year.
.4684
1.3095
.2995
.0867
.4275
1.3712
.3018
.0833
.4072
1.4089
.2997
.0758
.3554
1.4299
.3040
.0730
.3544
1.6923
.3192
.0600
3455
1.4945
.3417
.0582
77
CITY OF SCHERTZ, TEXAS
RATIO OF NET GENERAL OBLIGATION BONDED DEBT
TO ASSESSED VALUE AND NET GENERAL BONDED DEBT PER CAPITA TABLE 6
*Based on Preliminary 1990 Census. This estimate has
been challenged by the City.
"Includes General Bonded Debt Issued During Current Year
78
NET
RATIO
GENERAL
OF NET
BONDED
BONDED DEBT
DEBT PER
FISCAL YEAR
ESTIMATED
ASSESSED
NET GENERAL
TO ASSESSED
CAPITA
September 30,
1990
10,681 *
$287,272,356
$ 732,510
.25
$ 68.58
September 30,
1991
10,900
272,593,690
715,300
.26
65.62
September 30,
1992
11,500
268,170,123
687,715
.26
59.80
September 30,
1993
12,000
259,038,486
1,190,649 **
•.46
99.22
September 30,
1994
12,500
258,766,426
1,132,129
.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
*Based on Preliminary 1990 Census. This estimate has
been challenged by the City.
"Includes General Bonded Debt Issued During Current Year
78
CITY OF SCHERTZ, TEXAS
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
YEAR ENDED SEPTEMBER 30, 1999
*Bexar County
*Coma) County
*Coma) Independent School District
*Guadalupe County
* Schertz- Cibolo- Universal
City Independent School District
*Alamo Community College District
Total Net Overlapping Debt
*City of Schertz
TOTAL DIRECT AND OVERLAPPING DEBT
(4.07% OF ASSESSED VALUE -
$1, 208.42 PER CAPITA)
*Source of Data - Texas Municipal Reports,
City of Schertz, November, 1999
Compiled and Published by Municipal
Advisory Council of Texas
79
TABLE 7
$21,751,642
DIRECT AND
NET
ESTIMATED
ESTIMATED
BONDED
PERCENT
OVERLAPPING
DEBT
APPLICABLE
BONDED DEBT
$152,063,246
0.02%
$ 30,413
7,877,958
0.09
7,090
81,912,874
0.12
62,177
15,845,000
14.75
2,337,138
22,679,015
51.88
11,765,873
40,756,577
0.02
9,951
14, 212, 642
7,539,000
100.00%
7,539,000
$21,751,642
CITY OF SCHERTZ, TEXAS
LEGAL DEBT MARGIN
YEAR ENDED SEPTEMBER 30.1999 TABLE 8
Texas municipalities are not bound by any direct constitutional or statutory maximums as to the
amount of general obligation bonds which may be issued; however, all local bonds must be submitted
to and approved by the State Attorney General. It is the established practice of the Attorney General
not to approve prospective bond issue if it will result in the levy of a tax for bonded debt of over $ 1.00
for cities under 5,000 population or $ 1.50 for cities over 5,000 population.
W
CITY OF SCHERTZ, TEXAS
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR
GENERAL OBLIGATION BONDED DEBT TO TOTAL GENERAL EXPENDITURES
LAST TEN FISCAL YEARS TABLE 9
*Includes General, Special Revenue, and Debt Service Funds
81
PERCENT
OF DEBT
DEBT
SERVICE TO
SERVICE
GENERAL
FISCAL YEAR
PRINCIPAL
INTEREST
TOTAL
EXPENDITURES*
EXPENDITURES
September 30, 1990
$ 45,000
$52,049
$97,049
$2,174,020
4.5%
September 30, 1991
45,000
49,067
94,067
2,341,055
4.0
September 30, 1992
46,000
46,084
92,084
2,344,541
4.0
September 30, 1993
57,000
42,830
99,830
2,594,017
3.9
September 30, 1994
58,000
97,493
155,493
2,756,605
5.6
September 30, 1995
85,000
74,139
159,139
2,936,945
5.4
September 30, 1996
341,000
87,098
428,098
3,961,171
10.81
September 30, 1997
120,000
65,540
185,540
3,746,737
4.95
September 30, 1998
124,000
58,916
182,916
4,467,520
4.09
September 30, 1999
278,770
303,468
582,238
6,420,559
11.03
*Includes General, Special Revenue, and Debt Service Funds
81
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CITY OF SCHERTZ, TEXAS
WATERWORKS AND SEWER SYSTEM FUND
REVENUE BOND REQUIREMENTS AND RESTRICTED FUNDS
YEAR ENDED SEPTEMBER 30, 1999
ANNUAL
PRINCIPAL/
SEMI - ANNUAL
INTEREST
UTILITY SYSTEM REVENUE BONDS, SERIES 1987:
Principal Payment, Due September 1, 2000 35,000
Interest Payment, Due March 1, 2000 29,188
Total Requirements
CASH - RESTRICTED
OVER (UNDER) REQUIREMENTS
RESERVE FUND REQUIREMENTS
BASIS
TABLE 11
REQUIREMENT
AT
SEPTEMBER 30,
1999
1/12 TH $ 2,917
1/6TH 4,865
7,782
26,418
$18,636
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, 1999 met these requirements.
1 '/z Time Average Annual Principal and Interest
Requirement (Annual $135,578)
Cash and Cash Equivalents
FUNDS AVAILABLE OVER (UNDER) REQUIREMENT
83
$203,367
390,701
$187,334
CITY OF SCHERTZ, TEXAS
DEMOGRAPHIC STATISTICS
LAST TEN FISCAL YEARS
TABLE 12
Source:
(1) 1990 Bureau of the Census
Department of Planning, University of Texas
(2) Department of Economics, University of Texas
United States Department of Labor
(Information not Available for Odd Years)
(3) Texas Employment Commission
(4) Schertz- Cibolo- Universal City Independent School District
84
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)
1990
10,597 Act.
$ 9,600
42
12
4,175
4.6%
1991
10,900 Est.
13,436
35
14
4,309
6.3
1992
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.
15,000
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
Source:
(1) 1990 Bureau of the Census
Department of Planning, University of Texas
(2) Department of Economics, University of Texas
United States Department of Labor
(Information not Available for Odd Years)
(3) Texas Employment Commission
(4) Schertz- Cibolo- Universal City Independent School District
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PRINCIPAL TAXPAYERS
1. Eric W. White
2. H.E.B. Grocery Co.
3. Negley Paint Co., Inc.
4. Garden Ridge Pottery
5. Sycamore Creek Partners
6. Guadalupe Valley Electric
7. PSPI, Inc.
8. Intel Southwest
9. Corridor Properties, Ltd.
10. Bridgestone Firestone, Inc.
Other Assessed Properties
TOTAL ASSESSMENTS
_CITY OF SCHERTZ, TEXAS
PRINCIPAL TAXPAYERS
YEAR ENDED SEPTEMBER 30, 1999
TABLE 14
A-1
1998
PERCENTAGE OF
ASSESSED
TOTAL ASSESSED
TYPE OF BUSINESS
VALUATION
VALUATION
Real Estate
$ 6,024,869
1.13%
Grocery Sales
5,180,963
.97
Industrial
4,885,521
.91
Mercantile
3,902,412
.73
Apartments
3,476,934
.65
Utility
3,316,838
.62
Machine Fabricating
2,710,376
.51
2,624,579
.49
2,487,184
.47
2,386,860
.45
497,042,647
93.07
$534,039,183
100.00%
A-1
CITY OF SCHERTZ, TEXAS
MISCELLANEOUS STATISTICS
YEAR ENDED SEPTEMBER 30, 1999
Date of Incorporation
Date of First Charter Adopted
Date Present Charter Adopted:
Form of Government:
YEAR
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
Miles of Highways, Streets, and Alleys
Streets and Highways, Paved
Streets, Unpaved
Alleys
Sidewalks
Miles of Sewer:
Storm
Sanitary
Building Permits:
YEAR
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
PERMITS ISSUED
3,690
3,767
3,373
2,559
2,066
2,771
2,167
873
545
392
M
TABLE 15
December, 1958
April, 1974
Amended March, 1989
Council- Manager
SQUARE MILES
24.15
24.15
24.15
24.15
24.15
24.15
24.15
24.15
23.75
23.75
94.62 Miles
6.78 Miles
3.44 Miles
16.95 Miles
2.18 Miles
41.04 Miles
VALUE OF
BUILDINGS
$76,501,638
82,800,348
71,741,172
64, 267, 503
21,150,682
18,917,416
27,705,848
6,702,823
7,667,699
6,652,769
(Continued)
CITY OF SCHERTZ, TEXAS
MISCELLANEOUS STATISTICS
YEAR ENDED SEPTEMBER 30, 1999 TABLE 15
Fire Protection:
Number of Stations 1
Number of Employees (Full and Part -Time) 10
Number of Volunteers 30
Recreation:
Parks
7
Playgrounds
65
Other Recreational Facilities:
18,000
Baseball Fields
3
Softball Fields
2
Large Pavillion
10,000 Square Feet Covered
Small Pavillion
600 Square Feet Covered
Picnic Tables:
4,061
Uncovered
50
Restrooms:
1,200
Male
6
Female
6
Concessions Stands
1
Community Center
1
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
1999 (Estimate)
18,000
1998 (Estimate)
17,500
1997
15,000
1990
10,597
1980
7,260
1970
4,061
1960
2,281
1950
1,200
1940
600
M
SINGLE AUDIT REPORTS
99
(This Page Intentionally Left Blank)
w
NORTH TOWER
800 N.W. LOOP 410, SUITE 3WN
SAN ANTONIO. TEXAS 78216-5611
210/341 -2581
FAX 210/341 -2588
The Honorable Mayor and
Members of the City Council
City of Schertz, Texas
Thompson,
Williams,
Biediger,
K for
Young,
L.C.
CERTIFIED PUBLIC ACCOUNTANTS
MEMBERS AMERICAN INSTITUTE OF
CERTIFIED PUBLIC ACCOUNTANTS
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL
REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
We have audited the general purpose financial statements of City of Schertz, Texas, as of
and for the year ended September 30, 1999, and have issued our report thereon dated
February 10, 2000. We conducted our audit in accordance with generally accepted
auditing standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the Untied States.
Compliance
As part of obtaining reasonable assurance about whether 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 effect on the determination of
financial statement amounts. However, providing an opinion on compliance with the
provisions was not an objective of our audit and, accordingly, we do not express such an
opinion. The results of our test disclosed no instances of noncompliance that are required
to be reported under Government Auditing Standards.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered 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
R. LARRY THOMPSON, C.P.A. / PAUL E. WILLIAMS, C.P.A. / JAMES L. BIEDIGER, JR., C.P.A. / C. TED KASTOR, C.P.A. / CHARLIE E. YOUNG, JR.. C.P.A.
H. LEE SCHWARTZMAN, C.P.A. / F. GLENN CRAVEY, C.P.A. / FRED J. TIMMONS. C.P.A. / JOHN W. GREEN, C.P.A.
JAMES T McCARTY. C.P.A. (RETIRES 91
(This Page Intentionally Left Blank)
M
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL
REPORTING ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED]
IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS (CONTINUED)
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.
This report is intended for the information of the audit committee, management, and
federal awarding agencies and pass- through entities. However, this report is a matter of
public record and its distribution is not limited.
February 10, 2000
San Antonio, Texas
IM
Certified Public Accountants
(This Page Intentionally Left Blank)
WH
NORTH TOWER
800 N.W. LOOP 410, SUITE 30ON
SAN ANTONIO, TEXAS 78216 -5611
210/341 -2581
FAX 210/341 -2588
The Honorable Mayor and
Members of the City Council
City of Schertz, Texas
Compliance
Thompson,
Williams,
Biediger,
Kadss or
Young,
L.C.
CERTIFIED PUBLIC ACCOUNTANTS
MEMBERS AMERICAN INSTITUTE OF
CERTIFIED PUBLIC ACCOUNTANTS
REPORT ON COMPLIANCE WITH REQUIREMENTS
APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL
OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A -133
We have audited the compliance of City of Schertz, Texas, with the types of compliance
requirements described in the U. S. Office of Management and Budget (OMB) Circular
A -133 Compliance Supplement that are applicable to each of its major federal programs for
the year ended September 30, 1999. City of Schertz, Texas', major federal programs are
identified in the summary of auditor's results section of the accompanying schedule of
findings and questioned costs. Compliance with the requirements of laws, regulations,
contracts, and grants applicable to each of its major federal programs is the responsibility
of City of Schertz, Texas' management. Our responsibility is to express an opinion on City
of Schertz, Texas' compliance based on our audit.
We conducted our audit of compliance in accordance with generally accepted auditing
standards; the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; and OMB Circular
A -133, Audits of States, Local Governments, and Non - Profit Organizations. Those
standards and OMB A -133 require that we plan and perform the audit to obtain reasonable
assurance about whether noncompliance with the types of compliance requirements
referred to above that could have a direct and material effect on a major federal program
occurred. An audit includes examining, on a test basis, evidence about City of Schertz,
Texas', compliance with those requirements and performing such other procedures as we
considered necessary in the circumstances. We believe that our audit provides a
reasonable basis or our opinion. Our audit does not provide a legal determination on City
of Schertz, Text ', compliance with those requirements.
In our opinion, City of Schertz, Texas, complied, in all material respects, with the
requirements referred to above that are applicable to each of its major federal programs for
the year ended September 30, 1999.
R. LARRY THOMPSON. C.P.A. / PAUL E. WILLIAMS. C.P.A. / JAMES L. BIEDIGER JR.. C.P.A. / C. TED KASTOR. C.P.A. / CHARLIE E. YOUNG. JR.. C.P.A.
H. LEE SCHWARTZMAN, C.P.A. / F. GLENN CRAVEY C.P.A. D J. TIMMONS. PC A / JOHN W. GREEN, C.P.A. 95
JAMES T McCARTY. C.P.A. (RETIRED)
��t.. ,�,� ?.'
(This Page Intentionally Left Blank)
REPORT ON COMPLIANCE WITH REQUIREMENTS
APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL
OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A -133 (CONTINUED)
Internal Control Over Compliance
The management of City of Schertz, Texas, is responsible for establishing and maintaining
effective internal control over compliance with requirements of laws, regulations,
contracts, and grants applicable to federal programs. In planning and performing our audit,
we considered City of Schertz, Texas', internal control over compliance with requirements
that could have a direct and material effect on a major federal program in order to
determine our auditing procedures for the purpose of expressing our opinion on compliance
and to test and report on the internal control over compliance in accordance with OMB
Circular A -133.
Our consideration of the internal control over compliance would not necessarily disclose all
matters in the internal control 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 noncompliance with
applicable requirements of laws, regulations, contracts, and grants that would be material
in relation to a major federal program 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 compliance and its operation that
we consider to be material weaknesses.
This report is intended solely for the information and use of the audit committee,
management, others within the organization, City Council, and federal awarding agencies
and pass- through entities and is not intended to be and should not be used by anyone
other than these specified parties.
San Antonio, Texas
February 10, 2000
/ �/
i
'� � TI I ,
Certified Public Accountants
97
CITY OF SCHERTZ
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED SEPTEMBER 30, 1999
PASS - THROUGH
FEDERAL ENTITY
FEDERAL GRANTOR/ PASS - THROUGH CFDA IDENTIFYING
GRANTOR /PROGRAM OR CLUSTER TITLE NUMBER NUMBER
Federal Emergency Management
Division of Emergency Management
Federal Emergency Management
Division of Emergency Management
Federal U. S. Housing and Urban
Development
Texas Department of
Housing and Community Affairs
83.546
83.546
83.516 828007
FEDERAL
EXPENDITURES
$345,000
313,482
115,000
Federal Surplus Property Program 39.003 21,839
$795,321
m
CITY OF SCHERTZ
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED SEPTEMBER 30, 1999
NOTE 1: BASIS OF PRESENTATION
The accompanying schedule of expenditures of federal awards includes the federal grant activity of the
City of Schertz and is presented on the accrual basis of accounting. The information in this schedule is
presented in accordance with the requirements of OMB Circular A -133, Audits of States, Local
Governments, and Non - Profit Organizations. Therefore, some amounts presented in this schedule may
differ from amounts presented in, or used in the preparation of, the basic financial statements.
NOTE 2: PURCHASE OF SURPLUS PROPERTY
Nonmonetary assistance
received and disbursed.
market value of $21,839.
is reported in the schedule at the fair market value of the commodities
The City purchased surplus property at a cost of $2,841 but having a fair
..
CITY OF SCHERTZ
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED SEPTEMBER 30, 1999
SUMMARY OF AUDIT RESULTS
1. The auditor's report expresses an unqualified opinion on the general purpose financial
statements of City of Schertz.
2. No instances of noncompliance material to the general purpose financial statements of
City of Schertz were disclosed during the audit.
3. The auditor's report on compliance for the major federal award programs for City of
Schertz expresses an unqualified opinion on all major federal programs.
4. Audit findings relative to the major federal award programs for City of Schertz are
reported in this Schedule.
5. The programs tested as major programs included: Federal Emergency Management.
6. The threshold for distinguishing Types A and B programs was $300,000.
FINDINGS - FINANCIAL STATEMENTS AUDIT
REPORTABLE CONDITIONS: NONE
100