CAFR FY 1996-971
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COMPREHENSIVE
ANNUAL FINANCIAL REPORT
FOR THE FISCAL; YEAR ENDED
SEPTEMBER 30, 1997
SCREPPza
F35 [ -]f
CITY OF SCHERTZ, TENIZ"AS
MAYOR
CITY COUNCIL
CITY OF SCHERTZ, TEXAS
COMPREHENSIVE ANNUM, FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 1997
CITY OFFICIALS
HONORABLE HAROLD D. BALDWIN
KENNETH GREENWALD
TIMOTHY SWINNEY
NORMAN AGEE, SR.
MAYOR PRO -TEM
(May 1, 1997 to September 30, 1997)
JOE POTEMPA
MAYOR PRO -TEM
(November 1, 1996 to April 30, 1997)
CHARLES MCDONALD
MAYOR PRO -TEM
(October, 1996)
CITY MANAGER KERRY R. SWEATT
COMPTROLLER L. J. COTT
INDEPENDENT AUDITORS
Thompson, Williams, Biediger, Kastor & Young, L.C.
San Antonio, Texas
OFFICIALS ISSUING REPORT
Kerry R. Sweatt
City Manager
L. J. Cott
Comptroller
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ii
C O N T E N T S
PAGE
NUMBER
INTRODUCTORY SECTION
Letter of Transmittal ix
Organization Chart xvii
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 s
Combined Statement of Revenues, Expenditures,
and Changes in Fund Balances - All Governmental
Fund Types and Discretely Presented Component Units it
Combined Statement of Revenues, Expenditures,
and Changes in Fund Balances - Budget and
Actual - General and Debt Service Fund Type 13
Combined Statement of Revenues, Expenses, and
Changes in Retained Earnings - All Proprietary
Fund Types
15
Combined Statement of Cash Flows - All Proprietary
Fund Types 16
Notes to Financial Statements is
Combining, Individual Fund and Account Group
Statements and Schedules
General Fund
Comparative Balance Sheets 41
Comparative Schedules of Revenues,
Expenditures, and Changes in Fund Balances
- Budget and Actual 42
Schedule of Revenues Compared to Budget
43
Schedule of Expenditures Compared to Budget 44
iii
C 0 N T E N T S
Special Revenue Funds
PAGE
TABLE NUMBER
Combining Balance Sheet
47
Combining Statement of Revenue, Expenditures
and Changes in Fund Balances
48
Debt Service Fund
Comparative Balance Sheets
51
Comparative Statements of Revenues,
Expenditures, and Changes in Fund
Balances - Budget and Actual
52
Capital Projects Funds
Comparative Balance Sheets
55
Comparative Statements of Revenue,
Expenditures, and Changes in Fund Balances
56
Enterprise Funds
Combining Balance Sheet
58
Combining Statement of Revenues, Expenses,
and Changes in Retained Earnings
60
Combining Statement of Cash Flows -
All Proprietary Fund Types
61
General Fixed Assets
Schedules of General Fixed Assets - By Source
65
Schedules of General Fixed Assets -
By Function and Activity
66
Discretely Presented Component Units
Combining Balance Sheet
71
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
72
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C O N T E N T S
STATISTICAL INFORMATION
General Governmental Expenditures by Function
General Government Revenues by Source
Property Tax Levies and Collections
Assessed and Estimated Actual Value of Property
Property Tax Rates - Direct and Overlapping
Governments
Ratio of Net General Obligation Bonded Debt
to Assessed Value and Net General Bonded
Debt Per Capita
Computation of Direct and Overlapping Debt
Legal Debt Margin
Ratio of Annual Debt Service Expenditures for
General Obligation Bonded Debt to Total
General Expenditures - Last Ten Fiscal Years
Water and Sewer Fund Revenue Bond Coverage
Waterworks and Sewer System Fund Revenue
Bond Requirements and Restricted Funds
Demographic Statistics - Last Ten Fiscal Years
Property Value, Construction, and Bank
Deposits - Last Ten Fiscal Years
Principal Taxpayers
Miscellaneous Statistics
GENERALLY ACCEPTED GOVERNMENTAL AUDITING
STANDARD REPORTS
Independent Auditor's Report on Internal Control
Structure Based on an Audit of General Purpose
Financial Statements Performed in Accordance
with Government Auditing Standards
Independent Auditor's Report on Compliance Based
on an Audit of General Purpose Financial Statements
Performed in Accordance with Government Auditing
Standards
PAGE
TABLE NUMBER
1 74
2 75
3 77
4 78
5 79
6 80
7 81
8 82
9 83
10 85
11 86
12 87
13 89
14 90
15 91
95
99
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INTRODUCTORY SECTION
vii
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Nl TO T
1400 SCHERTZ PARKWAY
P. O. DRAWER I
SCHERTZ, TEXAS 78154 -0890
AC (210) 658 -3510 KERRY R. SWEATT
FAX (210) 659 -3204 CITY MANAGER
December 31, 1997
To the Citizens of the City of Schertz, Texas
The comprehensive annual financial report (CAFR) of the City of Schertz,
Texas, (The City) for the year ending September 30, 1997 is submitted herewith.
Responsibility for both the accuracy of the presentation including all disclosures
rests with the City. The data, as presented, is accurate to the best of our
ability in all material aspects. The report is presented in a manner designed to
set forth the financial position of the City and provide a review of various funds.
We have attempted to provide all disclosures necessary to enable the reader to gain
maximum understanding of the City's financial activity.
The accompanying CAFR is presented in the following three (3) sections:
1. Introduction - Includes this letter of transmittal, Table of
Organization, comments regarding economic conditions and outlook, major
occurrences of fiscal year 1996 -97, and major initiatives for fiscal year
1997 -98.
2. Financial - This section consists of: the independent auditors' report,
general purpose financial statements including combined balance sheets
and combined statements of revenue and expenditures and changes in fund
balance, notes to financial statements, and individual fund statements
and account 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. Generally Accepted Governmental Auditing Standards Reports - This section
consists of the two (2) reports as required by the Yellow Book.
This report includes all funds and account groups of the City of Schertz. The
City provides a full range of services including: police, emergency medical
transportation, and fire protection; water and sewer services; waste collection;
code enforcement; comprehensive planning; street maintenance and recreational
activities as well as economic development efforts. While the Schertz Public
Library is an operating department of city government, the Library Board serves as
an advisory board and maintains a small amount of funds, derived from private
sources, as a means to fund specific improvements /additions to the library outside
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city resources. The Schertz Development Foundation is a separate nonprofit
corporation organized and operated for the charitable purpose of assisting the City
of Schertz, Texas, to develop and implement plans for economic viability to the
City. Both the library 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 which continues to rank as one of the highest tourist attraction
areas in the Southwest. The economic condition and outlook of the area continues
to improve and statistical data for fiscal year 1996 -97 economic indicators
include: Housing starts were 524 for 1996 -97 as compared to 460 for 1995 -96 and
126 for the 1994 -95 fiscal year. Total permits were valued at $57,591,942 for
1996 -97 compared to $48,959,088 for 1995 -96 and $21,150,682 for 1994 -95.
The current economic condition in the area and region remains strong. Year-
end unemployment figures for Guadalupe County remain steady at about 3 %, down from
last year's 4.1%. The City of Schertz is at the southern end of the Austin /San
Antonio corridor which rates in the top 10 of the fastest growing regions in the
country. The City of Schertz can draw from a labor pool of over 700,000. As of
yet, we see no evidence of difficulties in employers finding productive workers.
The near -term outlook remains very positive. Commercial inquiries remain
high, and the size and scope reflect the strength of the local labor market as well
as the economic viability of this area to absorb high levels of growth. The long-
term outlook is also positive as this region in general and the City of Schertz in
particular should remain strong because of the fundamental strengths of the area:
good work force; competitive taxes; excellent quality of life; transportation
infrastructure; space for growth; political stability; and continual forward
planning in both the near term and long term. Barring major changes in the
national economy, we expect these growth patterns to continue.
CURRENT YEAR PROJECTS
Recent new developments as well as enhancement of existing businesses shows
a renewed enthusiasm, and the attitude that "nothing breeds success like success"
seems to effect relocation and growth activity for our area. A positive outlook
is shared by all involved in the community's Economic Development Commission
activities. The City is currently working with several substantial prospects to
relocate to the area. We continue to receive an ever larger number of inquiries
which is another positive economic sign. One of the major strengths of the City
is an abundance of land available for development along the San Antonio /Austin
corridor of IH -35 and similarly available land for development along the corridor
between Houston /San Antonio of IH -10.
MAJOR EVENTS
The major event of 1996 -97 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 546 new residential lots platted during this time period.
Ashley Place and Dove Meadows expect to finish building their remaining lots by the
end of 1998. These two subdivisions alone will bring 863 new homes into our city
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with an average occupancy of 3+ people per household. Dove Meadows and Ashley
Place Subdivisions added to the growth and platting of Woodland Oaks Units 5B and
6B, Carolina Crossing Units 2 and 3, Forest Ridge Unit 2, Berry Creek Unit 2, and
Greenshire Units 7 and 8, (construction already underway or will be so in early
1998), indicate our growth projects should be revised. The history of Schertz home
building growth patterns usually peak in a period of 3 to 5 years; however, this
current strong home building pattern shows no indication of slowing down. To
further illustrate this, since the 1990 -93 time period when 368 new homes were
built in the original subdivisions of Woodland Oaks and Savannah Square filling the
empty lots from the 19801s, we have had an unprecedented sustained growth that will
exceed 2,200 new homes and with new subdivisions about to come on line, this number
could well exceed 3,000 new homes sometime early in the year 2000/2001 time frame.
Although our city has no major industry, we have realized a substantial]
increase in commercial construction. Ez sting retail development was enhance y
g awa to 00 square foot H.E.B. main store. In addition, the H.E.B.
w� act r6l complex has also built a 12,500 square foot strip center that is substantially
leased. This complex still has the capacity to expand another 12,500 feet in strip
center retail as well as two pad sites equaling about 20,000 square feet.
The Randolph- Brooks Federal Credit Union and State Bank have been completed
and the Schertz Bank on Schertz Parkway and I -35 access is under construction. The
opening of the Security Capital Building was also of major importance to the City.
The leasing of the Security Capital Building was closely watched by the industrial
community both in terms of industrial space absorption rates as well as the
viability of the area to attract clients. Full leasing of the building within six
months is a major plus. The announcement of the relocation of Lone Star Pet
Supply, Interplastic, and AER are other major accomplishments in the economic
development arena.
MAJOR INITIATIVES
During the coming year we believe the City will continue to benefit from a
positive outlook and the groundwork in place. 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, rated A2 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. Land purchase and architectural
services are being selected as this report is being completed.
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.
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In developing and altering the Cityfs 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, 1997.
General Governmental Functions: Revenues which include General, Special
Revenue, Debt Service, and Capital Projects for general governmental function
totaled $4,298,599 in 1997, an increase of 13.54% from 1996. Taxes produced 62.77%
of general revenues compared to 63.12% last year. The amount of revenues from
various sources and the increase /decrease from last year are shown in the following
tabulation:
Taxes (Property, Sales, Etc.)
Licenses and Permits
Charges for Services
Fines and Forfeitures
Other Revenues
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PERCENT INCREASE
OF (DECREASE)
AMOUNT TOTAL FROM 1996
$2,698,175
62.77%
$308,410
546,159
12.71
151,318
452,890
10.54
77,123
331,244
7.70
13,841
270,131
6.28
(37,950)
$4,298,599 100.00%
$512.742
Expenditures. For general governmental purposes, expenditures totaled
$3,783,422, a decrease of 5.30% from 1996. Changes in levels of expenditures for
major functions of the City over the preceding year are shown in the following
tabulation:
$3,783,422 1120.00% $(211,896)
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 1997
fiscal year was as follows:
RATIO OF DEBT
TO ASSESSED
VALUE (100%)
OF PRESENT DEBT
AMOUNT MARKET PER CAPITA
Net General Obligation Bonded
Debt (Principal) $1.095,000 .29 113
MOODY'S
INVESTORS
SERVICE
General Obligation Bonds Baa -1
Revenue Bonds A
In October 1995, the City issued $1,700,000 of general obligation refunding
bonds. This refunding bond issue replaced a total of seven bond issues from the
water and sewer fund and general long -term debt account group. The issuance of
these bonds was given an A rating.
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PERCENT
INCREASE
OF
(DECREASE)
FUNCTION
AMOUNT
TOTAL
FROM 1996
General Government
$ 976,032
25.79%
$ 89,942
Public Safety
1,472,534
38.92
298,163
Streets and Parks
405,713
10.72
100,991
Health Services
102,293
2.70
16,608
Recreation
226,655
5.99
70,554
Economic Development
122,278
3.23
54,332
Capital Outlay
168,530
4.45
(318,412)
Debt Service
309,387
8.20
(524,074)
$3,783,422 1120.00% $(211,896)
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 1997
fiscal year was as follows:
RATIO OF DEBT
TO ASSESSED
VALUE (100%)
OF PRESENT DEBT
AMOUNT MARKET PER CAPITA
Net General Obligation Bonded
Debt (Principal) $1.095,000 .29 113
MOODY'S
INVESTORS
SERVICE
General Obligation Bonds Baa -1
Revenue Bonds A
In October 1995, the City issued $1,700,000 of general obligation refunding
bonds. This refunding bond issue replaced a total of seven bond issues from the
water and sewer fund and general long -term debt account group. The issuance of
these bonds was given an A rating.
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Property Taxes. Current tax collections are 97.1% of the tax levy. This is
the sixteenth 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 98.3 %. Allocations of property tax levy by purpose for 1997
and the preceding two fiscal years are as follows (amounts per $100 assessed value):
PURPOSE
POSE
General Fund
General Obligation Debt
1997 19_ 96 1995
.3117 .3472 .3478
.0602 .0600 .0797
.3719 .4� 072 .4275
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 $256,005, an increase of $70,354 interest compared to earnings
during 1996. This increase was due to additional funds from the 1992 bond issue
being available. Bank deposits and certificates of deposit are secured by FDIC
insurance and governmental securities pledged by Schertz Bank and Trust and held in
safekeeping by Frost Bank.
General Fixed Assets. The general fixed assets of the City are those fixed
assets used in the performance of general governmental functions and exclude the
fixed assets of Enterprise Funds. As of September 30, 1997, the general fixed
assets of the City amounted to $11,884,745. This amount represents the original
cost, or an estimate of the original cost of the assets. Depreciation of general
fixed assets is not recognized in the City's accounting system. Refer to
Notes 1 (I) and 5 in the notes to the financial statements.
The City is self- insured on physical damage to specific vehicles. In order to
Provide coverage for this, risk funds are designated in the General Fund with a
balance of $45,000 at September 30, 1997.
Water and Sewer System. During the fiscal year ended September 30, 1997, net
revenues in the water -sewer system increased substantially with the adoption of an
inverted block rate. Comparative data for the past two fiscal years is presented
below:
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
1997 1996
$2,879,730 $2,390,600
1,046,257 667,185
1,226,894 998,010
219,500 289,392
During the year, $55,000 of maturing revenue bonds and $4,000 in Public
Facility HUD Bond, and $29,899 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, 1997, SAFES increased its revenue 28.77% and increased operating
expenses by 34.42 %. SAFES is fully dependent on income fees generated from services
rendered and the contracted cities' support to cover operations costs. This year
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SAFES had an operating income before depreciation of $681,503. A net charge for
future uncollectible accounts of $76,853 reduced operating expenses for the current
year.
OTHER INFORMATION
Awards. The Government Finance Officers Association of the United States and
Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial
Reporting to the City for its comprehensive annual financial report for the fiscal
year ended September 30, 1996. The Certificate of Achievement is the highest form
of recognition for excellence in state and local government financing reporting.
In order to be awarded a Certificate of Achievement, a government unit must
publish an easily readable and efficiently organized comprehensive annual financial
report, whose contents conform to program standards. Such reports must satisfy both
generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. The City
of Schertz has received a Certificate of Achievement for the last six (6)
consecutive years. We believe our current report continues to conform to the
Certificate of Achievement program requirements, and we are submitting it to GFOA.
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 1996 -97. 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. L. J. Cott 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,
Kerry R. Sweat
City Manager
L. J. Cott
Comptroller
xvi
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zviii
FINANCIAL SECTION
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NORTH TOWER
800 N.W. LOOP 410. SUITE 30ON
SAN ANTONIO, TEXAS 78216 -5611
210/541 -2581
FAX 210/341 -2588
To the Honorable Mayor and
Members of the City Council
City of Schertz, Texas
Thompson,
Williams,
Biediger,
Ka�sstor
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, and the combining financial statements of the City of
Schertz, Texas, as of and for the year ended September 30, 1997, as listed in the
table of contents. These financial statements are the responsibility of the City's
management. Our responsibility is to express an opinion on these financial
statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards
and 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 financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We
believe that our audit provides a reasonable basis for our opinion.
In our opinion, the general purpose financial statements referred to above
present fairly, in all material respects, the financial position of the City of
Schertz, Texas, at September 30, 1997, and the results of its operations and cash
flows of its proprietary fund types for the year then ended, in conformity with
generally accepted accounting principles. Also, in our opinion, the combining
financial statements referred to above present fairly, in all material respects, the
financial position of each of the individual funds of the City of Schertz, Texas,
at September 30, 1997, and the results of operations of such funds and the changes
in individual proprietary funds for the year then ended, in conformity with
generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued a report dated
December 23, 1997 on our consideration of City of Schertz' internal control
structure and a report dated December 23, 1997 on its compliance with laws and
regulations.
i
r
r
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.
JOHN LEIF. 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)
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Our audit was made for the purpose of forming an opinion on the general purpose
financial statements taken as a whole and on the combining financial statements.
The accompanying financial information listed as supporting schedules in the table
of contents is presented for purposes of additional analysis and is not a required
part of the financial statements of the City of Schertz, Texas. The information in
these schedules has been subjected to the auditing procedures applied in the audit
of the general purpose and combining financial statements and, in our opinion, is
fairly stated in all material respects in relation to the financial statements of
each of the respective individual funds, taken as a whole.
San Antonio, Texas
December 23, 1997
Certified Public Accountants
5
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(This Page Intentionally Left Blank)
12
CITY OF SCHERTZ, TEXAS
COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - GENERAL AND DEBT SERVICE FUND TYPE
YEAR ENDED SEPTEMBER 30, 1997
REVENUES
Taxes
Licenses and Permits
Charges for Services
Pines and Forfeitures
Other Revenue
Total Revenues
EXPENDITURES
Current
General Government
Public Safety
Streets and Parks
Health
Recreation
Economic Development
Capital Outlay
Debt Service
Principal
Interest
Total Expenditures
Excess (Deficiency) of
Revenues Over (Under)
Expenditures
OTHER FINANCING SOURCES (USES)
Operating Transfers In (Out)
Excess (Deficiency) of
Revenues and Other Financing
Sources over (Under)
Expenditures and Other
Financing Uses
FUND BALANCES (DEFICIT) -
OCTOBER 1, 1996
RESIDUAL EQUITY TRANSFERS IN (OUT)
FUND BALANCES (DEFICIT) -
SEPTEMBER 30, 1997
GENERAL FUND DEBT SERVICE FUND
VARIANCE VARIANCE
FAVORABLE FAVORABLE
BUDGET ACTUAL (UNFAVORABLE) BUDGET ACTUAL (UNFAVORABLE)
$2,483,068
$2,577,659
$ 94,791 $ - $ - $ -
364,250
546,159
181,909 - - -
446,900
452,690
5,990 - - -
271,500
331,244
59,744 - - -
174,718
181,377
6,659
$3,740,436
$4,089,529
$349,093 $ -0- $ -0- $ -0-
$ 960,760
$ 976,032
1,535,892
1,472,534
414,485
397,807
115,615
102,293
226,897
226,655
72,790
67,910
203,008
139,751
45,000
45,000
2,841
2,357
$3,577,288
$3,430,339
$ 163,148 $ 659,190
(221,235) (226,534)
$(15,272)
-
63,358 - -
-
16,678 - -
-
13,322 - -
-
242 - -
-
4,880 - -
-
63,257 - -
-
- 143,535 170,000
(26,465)
484 77,700 92,030
(14,330)
$146,949 $ 221,235 $ 262,030
$(40,795)
$496,042 $(221,235) $(262,030) $(40,795)
(5,299) 221,235 266,786 45,551
$$ () $ 432,656 1122j.743 $ -0- $ 4,756 1_16756
(See Accompanying Notes to Financial Statements)
1,689,206 (34,347)
(83,134)
$2,038,7 $ (29,591)
13
(This Page Intentionally Left Blank)
14
CITY OF SCHERTZ, TEXAS
COMBINED STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS -
ALL PROPRIETARY FUND TYPES
YEAR ENDED SEPTEMBER 30, 1997
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1996)
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
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 Other
Financing Sources (Uses)
OTHER FINANCING SOURCES (USES)
Transfers Out
Net Income (Loss)
RETAINED EARNINGS (DEFICIT) -
OCTOBER 1
TOTALS
ENTERPRISE INTERNAL (MEMORANDUM ONLY)
FUNDS SERVICE 1997 1996
$3,609,525 $ 76,539 $3,686,064 $2,985,084
24,350 - 24,350 50,297
$3,633,875 $ 76,539 $3,710,414 $3,035,381
$ 849,168
$ 29,095
$ 878,263
$ 623,561
474,389
-
474,389
414,065
272,800
-
272,800
227,600
307,427
9,670
317,097
298,802
249,458
35,701
285,159
259,038
84,532
-
84,532
78,422
$2,237,774
$ 74,466
$2,312,240
$1,901,488
$1,396,101
$ 2,073
$1,398,174
$1,133,893
(310,915) (2,758) (313,673) 432,355
$1,085,186 $ (685) $1,084,501 $ 701,538
$ 179,323 $ - $ 179,323 $ 123,232
(138,558) - (138,558) (200,652)
$ 40,765 S -0- $ 40,765 $ (77,420)
$1,125,951 $ (685) $1,125,266 $ 624,118
(40,252) - (40,252) (159,258)
$1,085,699 $ (685) $1,085,014 $ 464,860
1,189,569 _(34,086) 1,155,483 690,623
RETAINED EARNINGS (DEFICIT) -
SEPTEMBER 30 $2,275,268 $04,771) $2,240,497 $1,155,483
(See Accompanying Notes to Financial Statements)
15
CITY OF SCHERTZ, TEXAS
COMBINED STATEMENT OF CASH FLOWS - ALL PROPRIETARY FUND TYPES
YEAR ENDED_ SEPTEMBER 30, 1997
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30 1996)
TOTALS
ENTERPRISE INTERNAL (MEMORANDUM ONLY1
FUNDS SERVICE 1997 1996
CASH FLOWS FROM OPERATING
ACTIVITIES
Cash Received from Customers
$4,490,000
Cash Payments to Suppliers for
Goods and Services
(1,492,558)
Cash Payments to Employees
for Services
(831,033)
Cash Received for Reimbursements
and Other
24,350
Net Cash Provided by
Operating Activities
$2,190,759
CASH FLOWS FROM NON - CAPITAL
FINANCING ACTIVITIES
Operating Transfers in (Out)
$ (40,252)
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Acquisition and Construction
of Capital Assets
$ (553,829)
Bond Issue Costs
_
Principal Payments on Long -
Term Debt
(259,899)
Proceeds from Issuance of
Long -Term Debt
_
Interest Paid on Long -Term
Debt
(155,428)
Capital Contributed for
Capital Assets
221,341
Net Cash Used in Capital and
Related Financing Activities
$ (747,815)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Investment
$ 601,663
Interest on Investments
179,323
Net Cash Provided by (Used in)
Investing Activities
$ 780,986
Net Increase in Cash
$2,183,678
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
$76,601 $4,566,601 $2,814,131
(43,226) (1,535,784) (370,172)
(28,316) (859,349) (619,820)
- 24,350 50,297
5,059 $2,195,818 $1,874,436
$ (40,252) $ (159,258)
$ - $ (553,829) $ (503,172)
(128,985)
(259,899) (1,317,218)
1,253,000
(155,428) (194,139)
221,341 236,908
$ $ (747,815) $ (653,606)
$ - $ 601,663 $ (601,663)
179,323 123,232
$$ -0- $ 780,986 $ (478,431)
$ 5,059 $2,188,737 $ 583,141
2,122,357 90
$4,306,035 5,149
$2,952,486 $ 5,149
1,353,549 -
$4,306,035 5,149
(See Accompanying Notes to Financial Statements)
16
2,122,447 1,539,306
$4,311,184 $2,122,447
$2,957,635
1,353,549
$4,311.184
$1,281,693
840,754
$2,122,447
(Continued)
CITY OF SCHERTZ, TEXAS
COMBINED STATEMENT OF CASH FLOWS - ALL PROPRIETARY FUND TYPES
YEAR ENDED SEPTEMBER 30. 1997
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30. 1996)
RECONCILIATION OF OPERATING
INCOME (LOSS) TO NET CASH
PROVIDED BY OPERATING
ACTIVITIES
Operating Income (Loss)
Adjustments to Reconcile
Operating Income (Loss)
to Net Cash Provided by
Operating Activities
Depreciation /Amortization
Depreciation Attributed to
Contributed Capital
.Provision for Uncollectible
Accounts
(Increase) Decrease in the
Following Assets
Accounts Receivable
Inventory
Due from Other Funds
Prepaid Costs
Increase (Decrease) in the
Following Liabilities
Vouchers Payable
Due to Other Funds
Accrued Vacation
Customer Deposits
NET CASH PROVIDED BY
OPERATING ACTIVITIES
TOTALS
ENTERPRISE INTERNAL (MEMORANDUM ONLY)
FUNDS SERVICE 1997 1996
$1,085,186 $ (685) $1,084,501 $701,538
310,915
2,758
313,673
432,355
132,213
-
132,213
2,533
82,285
-
82,285
78,422
(264,812)
-
(264,812)
(54,671)
(26,199)
960
(25,239)
7,817
1,063,002
62
1,063,064
(194,704)
-
310
310
(310)
(25,821)
-
(25,821)
121,575
(214,981)
875
(214,106)
752,010
18,135
779
18,914
3,741
30,836
-
30,836
24.130
$2,190,759 $5,059 $2,195,818 $1,874,436
(See Accompanying Notes to Financial Statements)
17
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1997
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.
1. Discretely Presented Component Unit: The Schertz Development Foundation is a
nonprofit corporation organized and operated for charitable purposes, including, but
not limited to, assisting the City of Schertz, Texas, 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, 1997 are available upon request from City Hall.
2. Discretely Presented Component Unit: The Library Fund'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, 1997 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 ".
Governmental funds are used to account for all or most of a government's general
activities, including the collection and disbursement of earmarked monies (Special
Revenue Funds), the acquisition or construction of general fixed assets (Capital
Projects Funds), and the servicing of general long -term debt (Debt Service Funds).
The General Fund is used to account for all activities of the City not accounted for
in some other fund.
18
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1997
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
B. Fund Accounting (Continued)
Proprietary funds are used to account for activities similar to those found in the
private sector, where the determination of net income is necessary or useful to
sound financial administration. Goods or services from such activities can be
provided either to outside parties (enterprise funds) or to other departments.
C. Basis of Accounting
The accounting and financial reporting treatment applied to a fund is determined by
its measurement focus. All governmental funds are accounted for using a current
financial resources measurement focus. With this measurement focus, only current
assets and current liabilities generally are included on the balance sheet.
Operating statements of these funds present increases (i.e., revenues and other
financing sources) and decreases (i.e., expenditures and other financing uses) in
net current assets.
All proprietary funds are accounted for on a flow of economic resources measurement
focus. With this measurement focus, all assets and all liabilities associated with
the operation of these funds are included on the balance sheet. Fund equity (i.e.,
net total assets) is segregated into contributed 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.
19
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1997
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Basis of Accounting (Continued)
Government funds include the following fund types:
The general fund is the government ,'s primary operating fund. It
accounts for all financial resources of the general government,
except those required to be accounted for in another fund.
The special revenue funds account for revenue sources that are legally
restricted to expenditure for specific purposes (not including expendable
trusts or major capital projects).
The debt service fund accounts for the servicing of general long -term
debt not being financed by proprietary or nonexpendable trust funds.
The capital projects funds account for the acquisition of fixed assets or
construction of major capital projects not being financed by proprietary
or nonexpendable trust funds.
Enterprise funds are used to account for those operations that are
financed and operated in a manner similar to private business or where the
board has decided that the determination of revenues earned, costs
incurred, and /or net income is necessary for management accountability.
Internal service funds account for the operations that provide services to
other departments or agencies of the government, or to other governments,
on a cost - reimbursement basis.
Proprietary Funds - The proprietary funds consist of Water and Sewer Fund, SAFES
Fund, and the Fleet Service Fund. The proprietary activities apply to all FASB
statements and interpretations issued after November 30, 1989 except for those that
conflict with or contradict GASB pronouncements.
Account Group. The general fixed assets account group is used to account for fixed
assets not accounted for in proprietary or trust funds. The general long -term debt
account group is used to account for general long -term debt and certain other
liabilities that are not specific liabilities of proprietary or trust funds.
D. Budgets
The City Charter establishes requirements for the adoption of budgets and related
budgetary control. Budgetary preparation and control is exercised at the
departmental level. Amendments to budget total are made only by the City Council.
The city manager is authorized to amend the budget without City Council approval by
transferring budget amounts between line items within a department. During the year
amendments were necessary, all complied with city charter requirements.
20
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1997
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. 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.
E. 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.
F. Short -Term Interfund Receivables /PaYables
During the course of operations, numerous transactions occur between individual
funds for goods provided or services rendered. These receivables and payables are
classified as "due from other funds" or "due to other funds" on the balance sheet.
Short -term interfund loans are classified as "interfund receivables /payables ".
G. Inventories
Inventories are valued at cost, which approximates market, using the first -in first -
out (FIFO) method. The costs of governmental fund -type inventories are recorded as
expenditures when consumed rather than when purchased.
H. Restricted Assets
Certain proceeds of Enterprise Fund revenue bonds, as well as certain resources set
aside for their repayment are classified as restricted assets on the balance sheet
because their use is limited by applicable bond covenants. Funds are segregated to
report those proceeds of revenue bond issuances that are restricted for use in
construction. Funds are also segregated to provide for debt services as provided
under bond indenture agreements.
21
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1997
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
I. Fixed Assets
General fixed assets are not capitalized in the funds used to acquire or construct
them. Instead, capital acquisition and construction are reflected as expenditures
in governmental funds, and the related assets are reported in the general fixed
assets account group. All purchased fixed assets are valued at cost where
historical records are available and at an estimated historical cost where no
historical records exist. Donated fixed assets are valued at their estimated fair
market value on the date received.
The costs of normal maintenance and repairs that do not add to the value of the
asset or materially extend asset lives are not capitalized. Improvements are
capitalized and depreciated over the remaining useful lives of the related fixed
assets, as applicable.
Public domain ( "infrastructure ") general fixed assets consisting of roads, bridges,
curbs and gutters, streets and sidewalks, drainage system, and lighting systems are
capitalized.
Assets in the general fixed assets account group are not depreciated. Depreciation
of buildings, equipment, and vehicles in the proprietary fund types is computed
using the straight -line method.
Interest is capitalized on proprietary fund assets acquired with tax - exempt debt.
The amount of interest to be capitalized is calculated by offsetting interest
expense incurred from the date of the borrowing until completion of the project with
interest earned on invested proceeds over the same period.
J. Compensated Absences
Vested or accumulated vacation leave that is expected to be liquidated with
expendable available financial resources is reported as an expenditure and a fund
liability of the governmental fund that will pay it. Amounts of vested or
accumulated vacation leave that are not expected to be liquidated with expendable
available financial resources are reported in the general long -term debt account
group. No expenditure is reported for these amounts. Vested or accumulated
vacation leave of proprietary funds is recorded as an expense and liability of those
funds as the benefits accrue to employees. In accordance with the provisions of
GASB Statement No. 16, "Accounting for Compensated Absences ", no liability is
recorded for nonvesting accumulating rights to receive sick pay benefits.
K. Short -Term Obligation
Short -term debt, debt of less than a year duration, is recognized as a liability of
the governmental fund that incurred the obligation when the intent is to liquidate
the obligation from expendable available resources.
22
CITY OF SC$ERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1997
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
L. Long -Term Obligation
Long -term debt is recognized as a liability of a governmental fund when due, or when
resources have been accumulated in the debt service fund for payment early in the
following year. For other long -term obligations, only that portion expected to be
financed from expendable available financial resources is reported as a fund
liability of a governmental fund. The remaining portion of such obligations is
reported in the general long -term debt account group. Long -term liabilities
expected to be financed from proprietary fund operations are accounted for in those
funds.
M. Fund Equity
Contributed capital is recorded in proprietary funds that have received capital
grants or contributions from developers, customers, or other funds. Reserves
represent those portions of fund equity not appropriate for expenditure or legally
segregated for a specific future use. Designated fund balances represent tentative
plans for future use of financial resources.
N. Bond Discounts /Issuance Costs
In governmental fund types, bond discounts and issuance costs are recognized in the
current period. Bond discounts and issuance costs for proprietary fund types are
deferred and amortized over the term of the bonds using the bonds - outstanding
method, which approximates the effective interest method. Bond discounts are
presented as a reduction of the face amount of bonds payable whereas issuance costs
are recorded as deferred charges.
O. Interfund Transactions
Quasi - external transactions are accounted for as revenues, expenditures or expenses.
Transactions that constitute reimbursements to a fund for expenditures /expenses
initially made from it that are properly applicable to another fund, are recorded
as expenditures /expenses in the reimbursing fund and as reductions of
expenditures /expenses in the fund that is reimbursed.
All other interfund transactions, except quasi - external transactions and
reimbursements, are reported as transfers. Nonrecurring or non - routine permanent
transfers of equity are reported as residual equity transfers. All other interfund
transfers are reported as operating transfers.
P. Cash Flows Statement
For purposes of the statement of cash flows, the City considers all highly liquid
investments (including restricted assets) with an original maturity of approximately
ninety days or less when purchased to be cash equivalents.
23
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1997
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Q. Memorandum Only - Total Columns
Total columns on the general purpose financial statements are captioned "memorandum
only" to indicate that they are presented only to facilitate financial analysis.
Data in these columns do not present financial position, results of operations or
changes in cash flows in conformity with generally accepted accounting principles.
Neither are such data comparable to a consolidation. Interfund eliminations have
not been made in the aggregation of this data.
R. Comparative Data
Comparative total data for the prior year has been presented in the accompanying
financial statements in order to provide an understanding of changes in the
government's financial position and operations.
S. 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.
T. Reclassifications
Certain reclassifications have been made to the 1996 comparative totals to conform
to the 1997 presentation.
NOTE 2: LEGAL COMPLIANCE - BUDGETS
On or before July each year, all agencies of the City submit request for appropriation
to the City Manager so that a budget may be prepared. The budget is prepared by fund,
department, function, and activity, and includes information on the past year, current
year estimates and requested appropriations for the next fiscal year.
Before September 30, the proposed budget is presented to the City Council for review,
modification, and approval. By state statute budgeted expenditures may not exceed
budgeted revenues.
Expenditures may not legally exceed budgeted appropriations at the fund level.
NOTE 3: DEPOSITS WITH FINANCIAL INSTITUTIONS
The City maintains demand deposit accounts, savings accounts, certificates of deposit,
and investment pools that are available for the individual funds from which they are
generated. The funds accounts are displayed on the combined balance sheet under the
captions "Cash and Cash Equivalents."
24
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1997
NOTE 3: DEPOSITS WITH FINANCIAL INSTITUTIONS (CONTINUED)
At September 30, 1997, cash deposits with financial institutions amounted to $5,974,112.
Bank balances of $5,844,514 consisted of funds held in investment pools of $3,830,556
and demand deposits and certificate of deposit totaling $2,013,958. Collateral pledged
applied only to demand deposits and certificate of deposit.
There are three (3) categories of risk that apply to the City's bank balances:
1. Insured or collateralized with securities held by the City or by the City's
agent in the City's name.
2. Collateralized with securities held by pledging financial institution's trust
department of the City's agent in the City's name.
3. Uncollateralized.
Deposits, categorized by level of risk are:
PRIMARY GOVERNMENT
Cash and Cash Equivalents
COMPONENT UNIT
Cash and Cash Equivalents
COLLATERAL
CATEGORY CARRYING MARKET
1 2 3 AMOUNT VALUE
$2,143,556 $ - $3,830,556 $5,974,112 $5,891,390
13,415 - - 13,415 13,523
The City is allowed to invest in (1) obligations of the United States or its agencies
and instrumentalities; (2) direct obligations of the State of Texas or its agencies; (3)
other obligations, the principal of and interest on which are unconditionally guaranteed
or insured by the State of Texas or the United States; (4) obligations of states,
agencies, counties, cities, and other political subdivisions of any state having been
rated as to investment quality by a nationally recognized investment rating firm and
having received a rating of not less than "AA" or its equivalent; (5) certificates of
deposits issued by state and national banks domiciled in Texas that are guaranteed or
insured by the Federal Deposit Insurance Corporation or its successor, or secured by
obligations mentioned above; and (6) fully collateralized direct repurchase agreements
having a defined termination date.
For fiscal year September 30, 1997, the City invested in demand deposits, certificates
of deposit, Logic Investment Pool, and Lone Star Investment Pool.
25
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1997
NOTE 4: RECEIVABLES
Receivables at September 30, 1997 consist of the following:
RECEIVABLES
Taxes
Account
Gross Receivables
Less: Allowance for
Uncollectible
NET TOTAL RECEIVABLES
SPECIAL DEBT
GENERAL REVENUE SERVICE ENTERPRISE TOTAL
$ 80,898 $ - $16,496
43,027 2,478
$123,925 $2,478 $16,496
4,045 825
$119,880 $2,478 $15,671
$ - $ 97,394
770,745 816,250
$770,745 $913,644
199,070 203,940
$571,675 $709,704
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 the Schertz Development Foundation
`L-1
BALANCES AT
BALANCES AT
OCTOBER 1,
SEPTEMBER 30,
1996
ADDITIONS DEDUCTIONS
1997
Land*
$ 423,460
$ - $5,051
$ 418,409
Buildings
1,114,290
- -
1,114,290
Improvements Other than
Buildings
7,956,342
28,779 -
7,985,121
Vehicles
1,092,935
74,088 -
1,167,023
Equipment
1,134,239
65,663 -
1.199,902
$11,721,266
$168,530 $5,051
$11,884,745
*Adjusted to Include Land of $10,688 in the Schertz Development Foundation
`L-1
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1997
NOTE 6: FIXED ASSETS - PROPRIETARY FUND TYPES
The following is a summary of the property, plant, and equipment of the Proprietary
Funds at Septembe; 30, 1997:
Buildings
Improvements Other than Buildings
Machinery and Equipment
Accumulated Depreciation
Land
TOTALS
ENTERPRISE
INTERNAL
WATER /SEWER
SAFES
SERVICE
TOTAL
$ 195,724
$ 26,656
$58,804
$ 281,184
9,930,033
7,642
1,142
9,938,817
705,417
522,501
25,198
1,253,116
$10,831,174
$556,799
$85,144
$11,473,117
5,713,956
308,667
29,169
6,051,792
$ 5,117,218
$248,132
$55,975
$ 5,421,325
160,521
General Obligation
160,521
$ 5,277,739 $248,132 $55,975 $ 5,581,846
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 for the year ended
September 30, 1997:
General Obligation
Refunding Bonds
1995 Series 447,000 3.75 -
5.00%
$418,000 $ -0- $ 48,000
27
$ 370,000
BALANCE
BALANCE
OUTSTANDING
OUTSTANDING
ORIGINAL
INTEREST
OCTOBER 1,
DURING YEAR
SEPTEMBER 30,
AMOUNT
RATE
1996
ISSUED
RETIRED
1997
General Obligation
Bonds
1962 Series
$301,000
3.63%
$ 62,000
$ -
$ 12,000
$ 50,000
1987 Series
445,000
6.2 - 8.3%
165,000
-
35,000
130,000
1992 Series
620,000
5.2 - 7.2%
570,000
-
25,000
545,000
$797,000
$ -0-
$ 72,000
$ 725,000
Certificates
of Obligation
1990 Series
850,000
7 - 9.0%
$380,000
$ -0-
$ 50,000
$ 330,000
General Obligation
Refunding Bonds
1995 Series 447,000 3.75 -
5.00%
$418,000 $ -0- $ 48,000
27
$ 370,000
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1997
NOTE 7: LONG -TERM DEBT (CONTINUED)
A. GENERAL LONG -TERM DEBT (CONTINUED)
Note Payable -
Bank
Due November,
1996
Note Payable -
Bank
Due September,
1997
TOTAL GENERAL
OBLIGATION
BONDS,
CERTIFICATES
OF OBLIGA-
TION, GENERAL
OBLIGATION
REFUNDING
BONDS, AND
NOTES PAYABLE
BALANCE BALANCE
OUTSTANDING OUTSTANDING
ORIGINAL INTEREST OCTOBER 1, DURING YEAR SEPTEMBER 30,
AMOUNT RATE 1996 ISSUED RETIRED 1997
42,891
45,000
Compensated Absences Payable
YEAR ENDED
SEPTEMBER 30.
1998
1999
2000
2001
2002
2003 -2007
Thereafter
TOTAL
Principal
Interest
TOTALS
9.25% $ 42,891 $ -0-
8.00% 45,000
S 87,891 $ -0-
$ 42,891
45,000
$ 87,891
$ -0-
$1,682,891 $ -0-
$257,891
$1,425,0000
BALANCE
BALANCE
OUTSTANDING
OUTSTANDING
OCTOBER 1,
SEPTEMBER 30,
1996
ADDITIONS
DEDUCTIONS
1997
$129.473
$16,566
$ -0-
$146,039
GENERAL
OBLIGATION
GENERAL
NOTES
REFUNDING OBLIGATION CERTIFICATE OF
PAYABLE
BONDS
BONDS
OBLIGATION
$ -
$ 62,248
$120,669
$ 76,772
-
39,755
120,546
77,718
-
38,661
116,375
78,231
-
91,265
64,093
73,519
-
74,834
52,380
88,081
-
136,328
447,100
-
-
74,480
$ -0-
$443.091
$995,643
$394,321
$ -
$370,000
$725,000
$330,000
-
73,091
270,643
64,321
$ -0- $443.091 $995,643 $394,321
28
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1997
NOTE 7: LONG -TERM DEBT (CONTINUED)
B. Proprietary Long -Term Debt
The following is a summary of changes in proprietary long -term debt for the year ended
September 30, 1997:
BALANCE BALANCE
OUTSTANDING OUTSTANDING
ORIGINAL INTEREST OCTOBER 1, SEPTEMBER 30,
AMOUNT RATE 1996 ISSUED RETIRED 1997
Revenue Bonds
1973 Series $ 165,000
5.75 - 6.10%
$ 125,000
$ -
$40,000
$ 85,000
1987 Series 1,020,000
6.30 - 8.30%
885,000
-
15,000
870,000
$1,010,000
$ -0-
$55,000
$955,000
BALANCE
1995 Series
$1,253,000 3.75
BALANCE
$1,162,000
$ -0-
OUTSTANDING
$1,080,000
OUTSTANDING
ORIGINAL
INTEREST
OCTOBER 1,
BALANCE
SEPTEMBER 30,
AMOUNT
RATE
1996
ISSUED
RETIRED
1997
Certificates
of Obliga-
tion
1983 Series $1,250,000 8.20 - 10.00% $ 85,000 $ - $85,000 $ -
1992 Series 200,000 5.00 - 7.00 170,000 - 10,000 160,000
$ 255,000 $_ $95,000 $ 160,000
General Obliga-
tion Refunding
Bonds
1995 Series
$1,253,000 3.75
- 5.00%
$1,162,000
$ -0-
$82,000
$1,080,000
BALANCE
BALANCE
OUTSTANDING
OUTSTANDING
ORIGINAL
INTEREST
OCTOBER 1,
SEPTEMBER 30,
AMOUNT
RATE
1996
ISSUED
RETIRED
1997
Public
Facility
Loan (HUD)
$142,000
5.00%
80,000
$ -0-
4,000
$ 6,
Note Payable
$273,000
7.60%
$173.819,
$ -0-
$23,899
$149,920
29
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1997
NOTE 7: LONG -TERM DEBT (CONTINUED)
B. Proprietary Long -Term Debt (Continued)
The annual requirements to amortize all debt outstanding as of September 30, 1997
including interest payments are as follows:
Bonded debt of the City consists of various series of general obligation bonds, revenue
bonds, certificates of obligation, public facility loan (BUD), 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
water and sewer fund. The debenture agreement for water and sewer bonds require funds be
available for 1 /12th the principal and 1 /6th the interest requirements of the next fiscal
year. Certificates of obligation are payable from a levy of ad valorem taxes upon all
taxable property within the City, and are further payable from certain net revenues
derived from the operation of the CityFs 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.
30
GENERAL
OBLIGATION
CERTIFICATES
PUBLIC
YEAR ENDED
REFUNDING
REVENUE
OF
FACILITY
NOTES
SEPTEMBER 30,
BONDS
BONDS
OBLIGATION
LOAN
PAYABLE
1998
$ 228,748
$ '122,012
$ 18,960
$ 7,800
$ 37,212
1999
221,953
143,588
18,390
7,600
37,212
2000
272,524
93,375
17,890
7,400
37,212
2001
271,207
90,750
17,380
7,200
37,212
2002
27,915
178,125
66,840
7,000
37,213
2003 -2007
207,182
752,875
63,480
32,000
-
Thereafter
-
-
-
45,000
TOTALS
$1,229,529
$1,380,725
$202,940
$114,000
$186,061
GENERAL
OBLIGATION
CERTIFICATES
PUBLIC
REFUNDING
REVENUE
OF
FACILITY
NOTES
BONDS
BONDS
OBLIGATION
LOAN
PAYABLE
Principal
$1,080,000
$ 955,000
$160,000
$ 76,000
$149,920
Interest
149,529
425,725
42,940
38,000
36,141
TOTALS
$1,229,529
$1,380,725
$202,940
$114,000
$186,061
Bonded debt of the City consists of various series of general obligation bonds, revenue
bonds, certificates of obligation, public facility loan (BUD), 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
water and sewer fund. The debenture agreement for water and sewer bonds require funds be
available for 1 /12th the principal and 1 /6th the interest requirements of the next fiscal
year. Certificates of obligation are payable from a levy of ad valorem taxes upon all
taxable property within the City, and are further payable from certain net revenues
derived from the operation of the CityFs 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.
30
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1997
NOTE 8: INTERFUND ASSETS /LIABILITIES
The following is a summary of amounts due from and due to primary government and blended
component units as of September 30, 1997:
General Fund
Special Revenue Funds
Park Fund
Forestry
Debt Service
Capital Projects
Enterprise Funds
Guadco MUD
Water and Sewer System
SAFES
Internal Service Fund
TOTALS
DUE FROM DUE TO
OTHER FUNDS OTHER FUNDS
$1,559,439 $ 109,888
66,148
202
758
264,604
23,458
1,060,929
134,424
31,728
$1,625,789 $1,625,789
The following is a summary of amounts due to and due from primary government and
discretely presented component units.
DUE FROM DUE TO
COMPONENT PRIMARY
UNIT GOVERNMENT
General Fund $234 $ -
Library Fund - 115
Schertz Development Foundation - 119
TOTALS 234 234
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,
1997, is as follows:
Operating Revenues
Operating Expenses, Exclusive of
Depreciation and Amortization
Depreciation and Amortization
Operating Income
Other Income (Expenses)
Net Income before Transfers
Transfers Out
NET INCOME
01
WATER /SEWER SAFES TOTAL
$2,879,730 $754,145 $3,633,875
(1,556,271)
(277,202)
$1,046,257
26,106
$1,072,363
(40,252)
$1,0
(681,503)
(33,713)
$ 38,929
14,659
$ 53,588
53.588
(2,237,774)
(310,915)
$1,,085,186
40,765
$1,125,951
(40,252)
$1,085,699
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1997
NOTE 9:_ SEGMENT INFORMATION - ENTERPRISE FUNDS (CONTINUED)
NOTE 10: CONTRIBUTED CAPITAL
During the year, contributed capital increased by the following amounts:
SOURCE
Developers
State
Less: Depreciation on Contribution
Totals
Contributed Capital, October 1
CONTRIBUTED CAPITAL, SEPTEMBER 30
NOTE 11: OPERATING TRANSFERS
WATER AND INTERNAL
SEWER SAFES SERVICE
FUND FUND FUND TOTAL
$ 37,569 $ - $ - $ 37,569
315,985 - - 315,985
(132,213) - - (132,213)
$ 221,341 $ -0- $ -0- $ 221,341
3,787,088 226,769 63,577 4,077,434
$4,029 $226,769 $63,577 $4,298,775
Operating transfers are comprised as follows:
IN OUT
General Fund $ - $226,534
Water and Sewer Fund - 40,252
Debt Service Fund 266,786
$266,786 $266,786
NOTE 12: DEFICIT RETAINED EARNINGS
For the year ended September 30, 1997, the Internal Service Fund has a deficit retained
earnings balance of $34,771. 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 1998 to offset this deficit balance. The Debt
Service Fund had a deficit fund balance of $29,591. Transfers from the General Fund and
Water and Sewer Fund have been adjusted to correct this deficit in the future.
NOTE 13: PENSION PLAN
Description
The City provides pension benefits for all of its full -time employees through a
nontraditional, joint contributory, defined contribution plan in the state -wide Texas
Municipal Retirement System (TMRS), one of over 688 administered by TMRS, an agent
32
WATER /SEWER
SAFES
TOTAL
Total Assets
$9,8� 49,732
$769,863
$10,061,959
Total Equity
$5,896.67
1$613,7951
$ 6,5104466
Working Capital
$1,7i 4644
$365,663
$ 2,112,407
Additions to Fixed Assets
$ 413,932
59,985
$ 473,917
Outstanding Debt
$2,4422_0,9920
$ -0
$ 2,420,920
NOTE 10: CONTRIBUTED CAPITAL
During the year, contributed capital increased by the following amounts:
SOURCE
Developers
State
Less: Depreciation on Contribution
Totals
Contributed Capital, October 1
CONTRIBUTED CAPITAL, SEPTEMBER 30
NOTE 11: OPERATING TRANSFERS
WATER AND INTERNAL
SEWER SAFES SERVICE
FUND FUND FUND TOTAL
$ 37,569 $ - $ - $ 37,569
315,985 - - 315,985
(132,213) - - (132,213)
$ 221,341 $ -0- $ -0- $ 221,341
3,787,088 226,769 63,577 4,077,434
$4,029 $226,769 $63,577 $4,298,775
Operating transfers are comprised as follows:
IN OUT
General Fund $ - $226,534
Water and Sewer Fund - 40,252
Debt Service Fund 266,786
$266,786 $266,786
NOTE 12: DEFICIT RETAINED EARNINGS
For the year ended September 30, 1997, the Internal Service Fund has a deficit retained
earnings balance of $34,771. 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 1998 to offset this deficit balance. The Debt
Service Fund had a deficit fund balance of $29,591. Transfers from the General Fund and
Water and Sewer Fund have been adjusted to correct this deficit in the future.
NOTE 13: PENSION PLAN
Description
The City provides pension benefits for all of its full -time employees through a
nontraditional, joint contributory, defined contribution plan in the state -wide Texas
Municipal Retirement System (TMRS), one of over 688 administered by TMRS, an agent
32
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1997
NOTE 13: PENSION PLAN (CONTINUED)
Description (Continued)
multiple - employer public employee retirement system. It is the opinion of the TMRS
management that the plans in TMRS are substantially defined contribution plans, but they
have elected to provide additional voluntary disclosure to help foster a better
understanding of some of the nontraditional characteristics of the plan.
Benefits depend upon the sum of the employee's contributions to the plan, with interest,
and the City- financed monetary credits, with interest. At the date the plan began, the
City granted monetary credits for service rendered before the plan began of a theoretical
amount equal to two times what would have been contributed by the employee, with interest,
prior to establishment of the plan. Monetary credits for service since the plan began are
a percent of the employee's accumulated contributions. In addition, the City can grant
as often as annually another type of monetary credit referred to as an updated service
credit which is a theoretical amount which, when added to the employee's accumulated
contributions and the monetary credits for service since the plan began, would be the
total monetary credits and employee contribution accumulated with interest if the current -
employee contribution rate and city matching percent had always been in existence and if
the employee's salary had always been the average of his salary in the last three years
that are one year before the effective date. At retirement, the benefit is calculated as
if the sum of the employee's accumulated contributions with interest and the employer -
financed monetary credits with interest were used to purchase an annuity.
Members can retire at ages sixty (60) and above with ten (10) or more years of service or
with twenty -five (25) years of service regardless of age. The plan also provides death
and disability benefits. A member is vested after ten (10) years, but he must leave his
accumulated contributions in the plan. If a member withdraws his own money, he is not
entitled to the employer- financed monetary credits, even if he was vested. The plan
provisions are adopted by the governing body of the City, within the options available in
the state statutes governing TMRS and within the actuarial constraints also in the
statutes.
Contributions
The contribution rate for the employees is 5 %, and the City matching percent is currently
100 %, both as adopted by the governing body of the City. Under the state law governing
TMRS, the City contribution rate is annually determined by the actuary. This rate
consists of the normal cost contribution rate and the prior service contribution rate,
both of which are calculated to be a level percent of payroll from year to year. The
normal cost contribution rate finances the currently accruing monetary credits due to City
matching percent, which are the obligation of the City as of an employee's retirement
date, not at the time the employee's contributions are made. The normal cost contribution
rate is the actuarially determined percent of payroll necessary to satisfy the obligation
of the City to each employee at the time his retirement becomes effective. The prior
service contribution rate amortizes the unfunded actuarial liability over the remainder
of the plan's twenty -five (25) year amortization period. When the City periodically
adopts updated service credits and increases in annuities in effect, the increased
unfunded actuarial liability is to be amortized over a new twenty -five (25) year period.
Currently, the unfunded actuarial liability is being amortized over the twenty -five (25)
year period which began January, 1997. The unit credit actuarial cost method is used for
33
CITY OF SCHERT2, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1997
NOTE 13: PENSION PLAN (CONTINUED)
Contributions (Continued)
determining the City contribution rate. Contributions are made monthly by both the
employees and the City. Since the City needs to know its contribution rate in advance to
budget for it, there is a one (1) year lag between the actuarial valuation that is the
basis for the rate and the calendar year when the rate goes into effect.
Funding Status and Progress
The City's total payroll in fiscal year 1997 was $2,701,448 and the City's contributions
were based on a payroll of $2,573,705. Both the City and the covered employees made the
required contributions, amounting to $140,535, (5.08% for the months in calendar year
1996, 3.23% normal cost plus 1.85% to amortize the unfunded actuarial liability and 5.37%
for the months in calendar year 1997, 3.34% normal cost plus 2.03% to amortize the
unfunded actuarial liability) for the City and $124,599 (5%) for the employees. The City
adopted changes in the plan since the previous actuarial valuation which had the effect
of increasing the City's contribution rate for 1997 by 0.26% of payroll. There were no
related -party transactions.
Even though the substance of the City's plan is not to provide a defined benefit in some
form, some additional voluntary disclosure is appropriate due to the nontraditional nature
of the defined contribution plan which had an initial unfunded pension benefit obligation
due to the monetary credits granted by the City for services rendered before the plan
began and which can have additions to the unfunded pension benefit obligation through the
periodic adoption of increases in benefit credits and benefits. Statement No. 5 of the
Governmental Accounting Standards Board (GASB 5) defines pension benefit obligation as a
standardized disclosure measure of the actuarial present value of pension benefits,
adjusted for the effects of projected salary increases, estimated to be payable in the
future as a result of employee service to date. The measure is intended to help users
assess the funding status of public employee pension plans, assess progress made in
accumulating sufficient assets to pay benefits when due, and make comparisons among public
employee pension plans.
The pension benefit obligation shown below is similar in nature to the standardized
disclosure measure required by GASB 5 for defined benefit plans except that there is no
need to project salary increases since the benefit credits earned for service to date are
not dependent upon future salaries. The calculations were made as part of the annual
actuarial valuation as of December 31, 1996. Because of the money - purchase nature of the
plan the interest rate assumption, currently 8.0% per year, does not have as much impact
on the results as it does for a defined benefit plan. Market value of assets is not
determined for each city's plan, but the market value of assets for TMRS as a whole was
102.7% of book value as of December 31, 1996.
Pension Benefit Obligation
Annuitants Currently Receiving Benefits $ 180,107
Terminated Employees 92,026
Current Employees
Accumulated Employee Contributions Including
Allocated Invested Earnings 326,177
34
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1997
NOTE 13: PENSION PLAN (CONTINUED)
Pension Benefit Obligation (Continued)
Employer- Financed Vested 536,120
Employer - Financed Nonvested 176,871
TOTAi
$1,311,301
Net Assets Available for Benefits, at Book Value $ 665,528
Unfunded Pension Benefit Obligation $ 645,773
The book value of assets is amortized cost for bonds and original cost for short -term
securities and stocks. The actuarial assumptions used to compute the actuarially
determined city contribution rate are the same as those used to compute the pension
benefit obligation. The numbers above reflect the adoption of changes in the plan
since the previous actuarial valuation, which had the effect of increasing the pension
benefit obligation by $82,535.
Trend Information
The ten (10) year historical trend information is being developed prospectively.
Because the City joined the Texas Municipal Retirement System (TMRS) during 1993, only
information for the last four (4) years is available as follows:
Unfunded (Assets in
Excess of) Pension
Benefit Obligation $ 645,773 $ 555,681 $ 556,744 $ 521,030
Annual Covered Payroll $2,573,705 $1,794,550 $1,844,503 $1,633,320
Unfunded Pension
Benefit Obligation
as a % to Payroll 25.09% 30.97% 30.18% 31.90%
City Contribution
to TMRS $ 140,535 $ 91,335 $91,702 $ 70,991
Average City Rate 5.46% 5.09% 4.97% 4.35%
35
YEAR ENDED SEPTEMBER 30,
1997
1996
1995
1994
Net Assets Available
for Benefits
$ 665,528
$ 493,745 $
320,126 $
133,346
Pension Benefit
Obligation
$1,311,301
$1,049,426 $
876,870 $
654,382
Percentage Funded
50.75%
47.05%
36.51%
20.38%
Unfunded (Assets in
Excess of) Pension
Benefit Obligation $ 645,773 $ 555,681 $ 556,744 $ 521,030
Annual Covered Payroll $2,573,705 $1,794,550 $1,844,503 $1,633,320
Unfunded Pension
Benefit Obligation
as a % to Payroll 25.09% 30.97% 30.18% 31.90%
City Contribution
to TMRS $ 140,535 $ 91,335 $91,702 $ 70,991
Average City Rate 5.46% 5.09% 4.97% 4.35%
35
CITY OF SCHERTZ, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1997
NOTE 14: 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, 1997, which can be obtained from the Texas
Municipal League.
NOTE 15: COMMITMENTS AND CONTINGENCIES
Vehicles owned by the City that are older than four 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, 1997.
NOTE 16: SUBSEOUENT EVENT
During the year ended September 30, 1997, the City incurred expenses relating to
emergency services provided during a severe flood. These additional expenses of
$46,421 are reflected in the operations of the City. After year end, the City received
reimbursements from the Federal Emergency Management Administration of $43,819 for
disaster relief.
In December of 1997, the City Council approved the sale of $4,930,000 of bonds for
delivery in January of 1998. These bonds will be repaid through 1/2 cent sales tax
increase approved by voters August 9, 1997.
36
COMBINING, INDIVIDUAL FUND AND
ACCOUNT GROUP STATEMENTS AND SCHEDULES
37
(This Page Intentionally Left Blank)
38
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.
39
(This Page Intentionally Left Blank)
40
CITY OF SCHERTZ, TEXAS
GENERAL FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 1997 AND 1996
ASSETS
Cash and Cash Equivalents
Accounts Receivable
Delinquent Taxes Receivable (Net of Allowances)
Due from Other Funds
Due from Component Units
Inventory of Supplies, at Cost
TOTAL ASSETS
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts Payable
Due to Other Funds
Deferred Revenue
Total Liabilities
FUND BALANCES
Reserved for Park Improvements
Reserved for Forfeited Property
Reserved for Inventory of Supplies
Unreserved
Designated for Economic Development
Designated for Equipment Replacement
Designated for Self- Insurance
Undesignated
Total Fund Balances
TOTAL LIABILITIES AND FUND BALANCES
(See Accompanying Notes to Financial Statements)
41
SEPTEMBER 30,
1997 1996
$ 667,992 $ 714,563
43,027 30,334
76,853 70,854
1,559,439 1,821,814
234 333
91018 12,398
$2,356,563 $2,650,296
$ 31,100 $ 30,727
109,888 859,509
176,847 70,854
$ 317,835 $ 961,090
$ - $ 83,134
44,638 19,980
9,018 12,398
18,821 18,821
16,144 15,144
45,000 45,000
1,905,107 1,494,729
$2,038,728 $1,689,206
$2,356,563 $2,650,296
CITY OF SCHERTZ, TEXAS
GENERAL FUND
COMPARATIVE SCHEDULES OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
YEAR ENDED SEPTEMBER 30, 1997
RESIDUAL EQUITY TRANSFER OUT (83,134)
FUND BALANCES -
SEPTEMBER 30 $2,0 $1,689,206
(See Accompanying Notes to Financial Statements)
42
1997
VARIANCE
FAVORABLE
1996
BUDGET
ACTUAL
(UNFAVORABLE)
ACTUAL
REVENUES
Taxes
$2,483,068
$2,577,859
$ 94,791
$2,384,706
Licenses and Permits
364,250
546,159
181,909.
394,841
Charges for Services
446,900
452,890
5,990
375,767
Fines and Forfeitures
271,500
331,244
59,744
317,403
Other Revenue
174,718
181,377
6,659
231,297
Total Revenues
$3,740,436
$4,089,529
$349,093
$3,704,014
EXPENDITURES
Current
General Government
$ 960,760
$ 976,032
$(15,272)
$ 837,540
Public Safety
1,535,892
1,472,534
63,358
1,174,371
Streets and Parks
414,485
397,807
16,678
304,722
Health
115,615
102,293
13,322
85,685
Recreation
226,897
226,655
242
156,101
Economic Development
72,790
67,910
4,880
57,374
Capital Outlay
203,008
139,751
63,257
452,795
Debt Service
47,841
47,357
484
Total Expenditures
$3,577,288
$3,430,339
$146,949
$3,068,588
Excess of Revenues over
Expenditures
$ 163,148
$ 659,190
$496,042
$ 635,426
OTHER FINANCIAL SOURCES (USES)
Loan Proceeds
$ -
$ -
$ -
$ 87,891
Operating Transfers - (Out)
(221,235)
(226,534)
(5,299)
(224,612)
Total Other Financial
Sources (Uses)
$ (221,235)
$ (226,534)
S (5,299)
$ (136,721)
Excess of Revenues and
Other Financing Sources
over Expenditures and
Other Financing Uses
$ (58,087)
432,656
$490,743
$ 498,705
FUND BALANCES - OCTOBER 1
1,689,206
1,190,501
RESIDUAL EQUITY TRANSFER OUT (83,134)
FUND BALANCES -
SEPTEMBER 30 $2,0 $1,689,206
(See Accompanying Notes to Financial Statements)
42
CITY OF SCHERTZ, TEXAS
GENERAL FUND
SCHEDULE OF REVENUES COMPARED TO BUDGET
YEAR ENDED SEPTEMBER 30, 1997
REVENUES
Taxes
Ad Valorem
Tax Penalty
City Sales Tax
Utility Franchise
Other
Total Taxes
Licenses and Permits
Charges for Services
Utility Administration
Swimming Pool
Animal Shelter
Building Rental
Library and Fire
Other
Total Charges for Services
Fines and Forfeitures
Other Revenue
Reimbursements
Proceeds from Litigation
Cibolo Creek Municipal Authority
Interest
Sale of Assets
Sale of Recycled Materials
Miscellaneous
State and Federal Grants
Total Other Revenue
TOTAL REVENUES
1997
VARIANCE
FAVORABLE 1996
BUDGET ACTUAL (UNFAVORABLE) ACTUAL
$1,387,033
$1,385,099
$ (1,934)
$1,356,184
12,000
12,622
622
10,304
786,797
876,369
89,572
760,667
283,238
294,421
11,183
243,403
14,000
9,348
(4,652)
14,148
$2,483,068
$2,577,859
$ 94,791
$2,384,706
$ 364,250 $ 546,159 $181,909 $ 394,841
$ 265,000
$ 265,000
$ -
$ 225,000
34,000
29,902
(4,098)
29,796
15,800
20,395
4,595
4,925
7,300
10,156
2,856
7,342
86,700
92,497
5,797
85,436
38,100
34,940
(3,160)
23,268
$ 446,900
$ 452,890
$ 51990
$ 375,767
$ 271,500
$ 331,244
$ 59,744
$ 317,403
$ 15,000
$ 29,182
$ 14,182
$ 43,355
-
-
-
16,850
6,200
5,922
(278)
6,106
30,831
50,234
19,403
31,703
15,897
15,963
66
-
-
-
-
22,323
73,990
20,915
(53,075)
85,690
32,800
59,161
26,361
25,270
S 174,718
$ 181,377
$ 6,659
$ 231,297
$3,740,436
$4,089,529
$349,093
$3,7
(See Accompanying Notes to Financial Statements)
43
CITY OF SCHERTZ, TEXAS
GENERAL FUND
SCHEDULE OF EXPENDITURES COMPARED TO BUDGET
YEAR ENDED SEPTEMBER 30, 1997
(See Accompanying Notes to Financial Statements)
44
1997
VARIANCE
FAVORABLE
1996
BUDGET
ACTUAL
(UNFAVORABLE),
ACTUAL
CURRENT
General Government
City Council
$ 27,460
$ 23,588
$ 3,872
$ 16,795
City Manager
224,299
220,418
3,881
201,206
Tax
92,691
89,803
2,888
78,777
Planning and Zoning
135,281
139,586
(4,305)
126,716
Legal
43,500
64,905
(21,405)
56,922
Municipal Court
81,452
80,280
1,172
67,059
Municipal Building
137,739
129,401
8,338
109,006
General Administration
93,681
94,171
(490)
87,772
Other - Unclassified
124,657
133,880
(9,223)
93,287
Total General Government
$ 960,760
S 976,032
$(15,272)
$ 837,540
Public Safety
Police Department
$1,044,112
$1,013,453
$ 30,659
$ 826,494
Fire Department
408,215
383,274
24,941
291,330
Inspection
83,565
75,807
7,758
56,547
Total Public Safety
$1,535,892
$1,472,534
$ 63,358
_
$1,174,371
Streets and Parks
Streets
$ 322,024
$ 315,911
$ 6,113
$ 223,082
Parks
92,461
81,896
10,565
81,640
Total Streets and Parks
$ 414,485
$ 397,807
$ 16,678
$ 304,722
Health
Animal Control
$ 115,615
$ 102,293
$ 13,322
$ 85,685
Recreation
Swimming Pool
$ 62,660
$ 63,136
$ (476)
$ 50,794
Library
164,237
163,519
718
105,307
Total Recreation
$ 226,897
$ 226,655
$ 242
$ 156,101
Economic Development
$ 72,790
$ 67,910
$ 4,880
$ 57,374
CAPITAL OUTLAY
$ 203,008
$ 139,751
$ 63,257
$ 452,795
DEBT SERVICE
Principal
$ 45,000
$ 45,000
$ -
$ -
Interest
2,841
2,357
484
Total Debt Service
$ 47,841
$ 47,357
$ 484
$ -0-
TOTAL EXPENDITURES
$3,577,288
$3,44330,3339
$146,949
$3,068
(See Accompanying Notes to Financial Statements)
44
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.
Guadco MUD Fund - will account for revenues received for the billing and collecting from
residential and commercial customers within the district.
Tax Increment Financing Fund - will account for the proceeds of designated property taxes
to be used for the widening of Schertz Parkway.
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.
Forestry Fund. - will account for funds from a state grant to be used for purchasing trees
and shrubs for City parks.
45
(This Page Intentionally Left Blank)
46
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DEBT SERVICE FUND
This fund is used to account for the accumulation of resources for and the payment of
principal, interest, and related costs on general long -term debt of the City.
49
(This Page Intentionally Left Blank)
50
CITY OF SCHERTZ, TEXAS
DEBT SERVICE FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 1997 AND 1996
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 (DEFICIT)
Reserved for Debt Service
TOTAL LIABILITIES AND FUND BALANCES
(See Accompanying Notes to Financial Statements)
51
SEPTEMBER 30,
1997 1996
$235,013 $235,013
15,671 14,512
$250.684, $249,525
$264,604 $269,360
15,671 14,512
$280,275 $283,872
(29,591) (34,347)
$250,684 $249,525
CITY OF SCHERTZ, TEXAS
DEBT SERVICE FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
YEAR ENDED SEPTEMBER 30, 1997
REVENUES
Interest Income
EXPENDITURES
Debt Service
Bond Principal
Bond Interest
Bond Issue Costs
Fiscal Agent Fees
Total Expenditures
Excess of Revenues Over
(Under) Expenditures
OTHER FINANCING SOURCES (USES)
Operating Transfers In
Proceeds from Bond Issue
Total Other Financing
Sources (Uses)
Excess of Revenues
(Deficiency) and Other
Financing Sources Over
(Under) Expenditures and
Other Financing Uses
FUND BALANCES (DEFICIT) - OCTOBER 1
FUND BALANCES (DEFICIT) -
SEPTEMBER 30
1997
VARIANCE
FAVORABLE 1996
BUDGET ACTUAL (UNFAVORABLE) ACTUAL
$ 1,794
$ 143,535 $ 170,000 $(26,465) $ 656,000
77,700 91,486 (13,786) 177,461
- - - 46,016
- 544 (544) 2,534
$ 221,235 $ 262,030 $(40,795) $ 882,011
$(221,235) $(262,030) $(40,795) $(880,217)
$ 221,235 $266,786
$ 221,235 $266,786
$ 4,756
(34,347)
$(29,591)
(See Accompanying Notes to Financial Statements)
52
$ 40,795
$ 40,795
$ 383,870
447,000
S 830,870
�0- $ (49,347)
15,000
$$ (347)
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.)
53
(This Page Intentionally Left Blank)
54
CITY OF SCHERTZ, TEXAS
CAPITAL PROJECTS FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 1997 AND 1996
ASSETS
Cash and Cash Equivalents
Due from Other Funds
TOTAL ASSETS
LIABILITIES AND FUND BALANCES
LIABILITIES
Due to Other Funds
FUND BALANCES
Unreserved - Designated for
Capital Improvements
TOTAL LIABILITIES AND
FUND BALANCES
TOTALS
1997 1996
$539,040 $ 719,889
- 376,668
$539,040 $1,096,557
$ 23,458 $ 571,516
515,582 525,041
$539,040 $1,096,557
(See Accompanying Notes to Financial Statements)
55
CITY OF SCHERTZ, TEXAS
CAPITAL PROJECTS FUND
COMPARATIVE_ STATEMENTS OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCES
YEARS ENDED SEPTEMBER 30, 1997 AND 1996
REVENUES
Other
Federal Financial Assistance
Interest Income
Other
Total Revenues
EXPENDITURES
Professional and Contractual Services
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
FUND BALANCES - BEGINNING OF YEAR
FUND BALANCES - END OF YEAR
TOTALS
1997 1996
$ - $ 36,765
26,939 26,678
287
$ 27,226 $ 63,443
$ 7,906 $ -
28,779 34,147
$ 36,685 $ 34,147
$ (9,459) $ 29,296
525,041 495,745
$515,582 $525,041
(See Accompanying Notes to Financial Statements)
Z -1
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.
57
CITY OF SCHERTZ, TEXAS
ENTERPRISE FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 1997
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1996)
ASSETS
CURRENT ASSETS
Cash and Cash
Equivalents
Investments
Accounts Receivable
(Net of Allowances)
Due from Other Funds
Inventory of Supplies,
at Cost
Total Current
Assets
RESTRICTED ASSETS
Cash and Cash
Equivalents
FIXED ASSETS
Land and Improvements
Buildings
Improvements Other
than Buildings
Machinery, Equipment,
and Vehicles
Construction in
Progress
Totals
Less: Accumulated
Depreciation
Total Fixed Assets
OTHER ASSETS
Organizational Costs
(Net of Accumulated
Amortization of $1,281
and $1,233 for 1997
and 1996)
Bond Issue Costs
(Net of Accumulated
Amortization of $7,138
and $3,387 for 1997 and
1996)
Deferred Loss on Early
Retirement of Debt (Net
of Accumulated Amortization
of $19,161 and $9,092 for
1997 and 1996)
Total Other Assets
TOTAL ASSETS
WATER AND
SEWER TOTALS
SYSTEM SAFES 1997 1996
$ 2,637,120 $315,366 $ 2,952,486 $ 1,281,603
- - - 601,663
381,936 189,739 571,675 389,147
- - - 1,063,002
96,082 16,126 112,708 86,509
$ 3,115,138 $521,731 $ 3,636,869 $ 3,421,924
$ 1,353,549 $ -0- $ 1,353,549 $ 840,754
$ 160,521
$ -
$ 160,521
$ 160,521
195,724
26,656
222,380
222,380
9,930,033
7,642
9,937,675
9,505,982
705,417
522,501
1,227,918
1,085,204
-
-
100,490
$10,991,695
$556,799
$11,548,494
$11,074,577
5,713,956
308,667
6,022,623
5,606,094
$ 5,277,739
$248,132
$ 5,525,871
$ 5,468,483
$ 620
$ -
$ 620
$ 667
27,872
74,814
$ 103,306
$ 9,849,732
(See Accompanying Notes to Financial Statements)
58
27,872 31,623
74,814 84,883
$ -0- $ 103,306 $ 117,173
$769 $10,619,595 $ 9,848,334
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Vouchers Payable
Note Payable
Due to Other Funds
Compensated Absences Payable
Total Current Liabilities
CURRENT LIABILITIES PAYABLE
FROM RESTRICTED ASSETS
Customer Deposits
Revenue Bonds
Certificates of
Obligation
Refunding Bonds
Public Facility Loan
Accrued Interest
Total Current Liabilities Payable
from Restricted Assets
WATER AND
SEWER TOTALS
SYSTEM SAFES 1997 1996
$ 254,512 $ 771
25,729 -
1,060,929 134,423
27,224 20,874
$1,368,394 $156,068
$ 255,283 $ 218,561
25,729 23,899
1,195,352 1,529,986
48,098 29,963
$ 1,524,462 $1,802,409
$ 174,651 $ - $ 174,651 $ 143,815
55,000 - 55,000 55,000
10,000 - 10,000 95,000
184,000 - 184,000 82,000
4,000 - 4,000 4,000
14,825 - 14,825 41,764
$ 442,476 $ -0- $ 442,476 $ 421,579
NONCURRENT LIABILITIES
Revenue Bonds Payable (Less
Current Maturities)
$ 900,000 $ -
$ 900,000
$ 955,000
Certificate of Obligation Payable
(Less Current Maturities)
150,000 -
150,000
160,000
Refunding Bonds (Less
Current Maturities)
896,000 -
896,000
1,080,000
Public Facility Loan
72,000 -
72,000
76,000
Note Payable (Less Current Maturities)
124,191 -
124,191
149,920
Total Noncurrent Liabilities
$2,142,191 $ -0-
$ 2,142,191
$2,420,920
Total Liabilities
EQUITY
Contributed Capital
Retained Earnings
Reserved for Revenue
Bond Retirement
Reserved for Equipment
Replacement and Capital
Improvements
Unreserved
Total Equity
$3,953,061 $156,068 $ 4,109,129 $4,644,908
$4,008,429 $226,769 $ 4,235,198 $4,013,857
382,368 - 382,368 382,368
40,000 - 40,000 40,000
1,465,874 387,026 1,852,900 767,201
$5,896,671 $613,795 $ 6,510,466 $5,203,426
TOTAL LIABILITIES AND EQUITY $9,849,732 $769,863 $10,619,595 $9,834
59
CITY OF SCHERTZ, TEXAS
ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS
YEAR ENDED SEPTEMBER 30, 1997
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1996)
OPERATING REVENUES
Fees Charged to Users
Reimbursements and Other
Total Operating Revenues
OPERATING EXPENSES BEFORE
DEPRECIATION
Personnel Services
Sewage Treatment
General and Administrative
Contractual Services
Supplies /Maintenance
Bad Debts
Total Operating Expenses
before Depreciation
Operating Income before
Depreciation and Amortization
Depreciation and Amortization
Operating Income
NONOPERATING REVENUES (EXPENSES)
Interest Income
Interest Expenses
Total Nonoperating Revenues
(Expenses)
Net Income before Other
Financing Sources (Uses)
OTHER FINANCING SOURCES (USES)
Transfers Out
Net Income
RETAINED EARNINGS AT BEGINNING
OF YEAR
RETAINED EARNINGS
AT END OF YEAR
WATER AND TOTALS
SEWER SYSTEM SAFES 1997 1996
$2,856,192 $753,333 $3,609,525 $2,932,642
23,538 812 24,350 43,597
$2,879,730 $754,145 $3,633,875 $2,976,239
$ 442,740
$406,428
$ 849,168
$ 601,270
474,389
-
474,389
414,065
265,000
7,800
272,800
227,600
228,454
78,973
307,427
282,712
143,131
106,327
249,458
228,707
2,557
81,975
84,532
78,422
$1,5560271 $681,503 $2,237,774 $1,832,776
$1,323,459 $ 72,642 $1,396,101 $1,143,463
(277,202) (33,713) (310,915) (429,596)
$1,046,257 $ 38,929 $1,085,186 $ 713,867
$ 164,664 $ 14,659 $ 179,323 $ 123,232
(138,558) - (138,558) (200,652)
$ 26,106 $ 14,659 $ 40,765 $ (77,420)
$1,072,363 $ 53,588 $1,125,951 $ 636,447
(40,252) - (40,252) (159,258)
$1,032,111 $ 53,588 $1,085,699 $ 477,189
856,131 333,438 1,189,569 712,380
$1,888,242 $387,026 $2,275,268 $1,189,569
(See Accompanying Notes to Financial Statements)
60
CITY OF SCHERTZ, TEXAS
ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS - ALL PROPRIETARY FUND TYPES
YEAR ENDED SEPTEMBER 30, 1997
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1996)
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
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
Bond Issue Costs
Principal Payments on
Long -Term Debt
Proceeds from Issuance of
Long -Term Debt
Interest Paid on Long -Term
Debt
Capital Contributed for
Capital Assets
Net Cash Used in Capital
and Related Financing
Activities
CASH FLOWS FROM INVESTING
ACTIVITIES
Purchase of Investment
Interest on Investments
Net Cash Provided by
(Used in) Investing
Activities
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
WATER AND
359,896
TOTALS
SEWER SYSTEM
SAFES
1997
1996
$3,860,844
$629,156
$4,490,000
$2,761,751
(1,277,767)
(214,791)
(1,492,558)
(334,585)
(439,452)
(391,581)
(831,033)
(597,469)
23,538
812
24,350
43,597
$2,167,163
$ 23,596
$2,190,759
$1,873,294
$ (40,252) $ -0- $ (40,252) $ (159,258)
$ (471,044) $(82,785) $ (553,829) $ (502,030)
- - - (128,985)
(259,899) - (259,899) (1,317,218)
1,253,000
(155,428) - (155,428) (194,139)
221,341 - 221,341 236,908
$ (665,030) $(82,785) $ (747,815) $ (652,464)
$ 601,663 $ - $ 601,663 $ (601,663)
164,664 14,659 179,323 123,232
$ 766,327 $ 14,659 $ 780,986 $ (478,431)
$2,228,208 $(44,530) $2,183,678 $ 583,141
1,762,461
359,896
2,122,357
1,539,216
$3,990,669
$315,366
$4,306,035
$2,122,357
$2,637,120
$315,366
$2,952,486
$1,281,603
1,353,549
1,353,549
840,754
CASH AND CASH EQUIVALENTS -
END OF YEAR $3,990,669 $315,366 $4,306,035 $2,122,357
(See Accompanying Notes to Financial Statements) (Continued)
61
CITY OF SCHERTZ, TEXAS
ENTERPRISE FUND
COMBINING STATEMENT OF CASH FLOWS - ALL PROPRIETARY FUND TYPES
YEAR ENDED SEPTEMBER 30, 1997
RECONCILIATION OF OPERATING
INCOME (LOSS) TO NET CASH
PROVIDED BY OPERATING
INCOME
Operating Income (Loss)
Adjustments to Reconcile
Operating Income (Loss)
to Net Cash Provided by
Operating Activities
Depreciation /Amortization
Provision for Uncollectible
Accounts
(Increase) Decrease in the
Followqing Assets
Accounts Receivable
Inventory
Due from Other Funds
Increase (Decrease) in the
Following Liabilities
Vouchers Payable
Due to Other Funds
Accrued Vacation
Customers Deposits
NET CASH PROVIDED BY
OPERATING ACTIVITIES
WATER AND TOTALS
SEWER SYSTEM SAFES 1997 1996
$1,036,188 $ 38,929 $1,075,117 $ 704,775
419,484
33,713
453,197
441,221
310
81,975
82,285
78,422
(56,749)
(208,063)
(264,812)
(54,671)
(29,123)
2,924
(26,199)
7,202
1,061,091
11911
1,063,002
(194,642)
(19,369)
(6,452)
(25,821)
121,575
(278,793)
63,812
(214,981)
741,481
3,288
14,847
18,135
3,801
30,836
-
30,836
24,130
$2,167,163 23,596 $2,190,759 $1,873,294
(See Accompanying Notes to Financial Statements)
62
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.
63
(This Page Intentionally Left Blank)
64
CITY OF SCHERT2, 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
65
SEPTEMBER 30,
1997 1996
$ 418,409 $ 423,460
1,114,290 1,114,290
7,985,121 7,956,342
1,158,583 1,092,935
1,208,342 1,134,239
$11,884,745 $11,721,266
$ 2,661,093 $ 2,526,393
1,346,769
182,686
317,005
113,614
180,984
7,066,305
10,504
5,785
$11,884,745
1,317,990
182,686
317,005
113,614
180,984
7,066,305
10,504
5,785
$11,721,266
CITY OF SCHERTZ, TEXAS
SCHEDULES OF GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY
YEAR ENDED SEPTEMBER 30, 1997
General Government
Public Safety
Police
Fire
Inspection
Street and Park
Street
Pool
Parks
Health
Animal Control
Library
BALANCE
BALANCE
OCTOBER 1,
SEPTEMBER 30,
1996
ADDITIONS
DEDUCTIONS 1997
$ 932,352
$ 43,727
$5,051 $ 971,028
573,494
6,112
- 579,606
828,937
55,276
- 884,213
24,955
2,255
- 27,210
7,586,302
15,250
- 7,601,552
5431300
-
- 543,300
687,982
8,867
- 696,849
232,708
34,257
- 266,965
300,732
400
- 301,132
Economic Development Foundation 10,504 2,386
TOTALS $11,721,266 $168.530
66
12,890
$5,051 $11,884,745
COMPONENTS OF GENERAL FIXED ASSETS
IMPROVEMENTS
OTHER THAN
LAND BUILDINGS BUILDINGS VEHICLES EQUIPMENT
$ 58,718 $ 623,236 $ 77,089 $ 6,676 $ 205,309
-
-
-
422,339
157,267
12,000
65,000
5,670
511,717
289,826
-
-
139
18,031
9,040
108,333
400
7,068,867
145,109
278,843
-
-
530,309
-
12,991
182,662
195,159
202,906
26,865
89,257
23,161
106,071
65,274
36,286
36,173
23,031
124,424
34,867
-
118,810
10,504 - 2,386
$418,409 $1,114,290 $7,985,121 $1,167,023 $1,199,902
M
(This Page Intentionally Left Blank)
68
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.
69
(This Page Intentionally Left Blank)
70
CITY OF SCHERTZ, TEXAS
DISCRETELY PRESENTED COMPONENT UNITS
COMBINING BALANCE SHEET
SEPTEMBER 30, 1997
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1996)
ASSETS
Cash and Cash Equivalents
Due from Other Funds
TOTAL ASSETS
LIABILITIES AND FUND BALANCES
LIABILITIES
Due to Primary Government
Due to Other Funds
Total Liabilities
FUND BALANCES
Unreserved
Designated for Special Revenue Purposes
TOTAL LIABILITIES AND
FUND BALANCES
SCHERTZ
LIBRARY DEVELOPMENT TOTALS
FUND FOUNDATION 1997 1996
$13,415
$78,137
$91,552
$59,695
-
-
243
$13,415
$78,137
$91,552
$59,938
$ 115
$ 119
$ 234
$ -
-
-
140
$ 115
$ 119
$ 234
$ 140
13,300 78,018 91,318 59,798
$13,415
(See Accompanying Notes to Financial Statements)
71
$78,137
$91,552 $59,938
CITY OF SCHERTZ, TEXAS
DISCRETELY PRESENTED COMPONENT UNITS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
YEAR ENDED SEPTEMBER 30, 1997
(_WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1996)
REVENUES
Other
Donations
Reimbursements
Interest
Total Revenues
EXPENDITURES
Current
Recreation
Economic Development
Capital Outlay
Total Expenditures
Excess (Deficit) of Revenues
Over Expenditures
FUND BALANCES - OCTOBER 1
FUND BALANCES (DEFICIT) -
SEPTEMBER 30
SCHERTZ
LIBRARY DEVELOPMENT TOTALS
FUND FOUNDATION 1997 1996
$ 5,328 $ - $ 5,328 $13,536
- 36,079 36,079 -
313 2,693 3,006 2,105
5,641 $38,772 $44,413 $15,641
$ 2,707
$ -
$ 2,707
$ 937
-
10,186
10,186
10,572
-
-
5,785
2,707
$10,186
$12,893
$17,294
$ 2,934
$28,586
$31,520
$(1,653)
10,366
49,432
59,798
61,451
$13.300 $78,018 $91,318 $59,798
(See Accompanying Notes to Financial Statements)
72
STATISTICAL INFORMATION
73
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
1988
$807,754
$523,000
$283,323
$47,507
$216,662
$1,878,246
1989
934,517
582,673
289,539
50,243
189,199
2,046,171
1990
654,009
796,823
327,797
56,150
339,241
2,174,020
1991
659,815
836,031
342,974
65,816
436,419
2,341,055
1992
689,082
843,582
352,093
66,646
393,138
2,344,541
1993
741,305
924,222
373,213
75,441
479,836
2,594,017
1994
744,801
978,121
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
(1) Includes General, Special Revenue
and Debt Service Funds
74
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
75
LICENSES
CHARGES
FINES
FISCAL
AND
FOR
AND
YEAR
TAXES
PERMITS
SERVICES
FORFEITURES
OTHER
TOTAL*
1988
$1,308,600
$54,627
$32,391
$139,008
$272,230
$1,806,856
1989
1,360,611
53,045
31,235
145,830
305,348
1,896,069
1990
1,540,027
42,194
72,781
217,311
305,977
2,178,290
1991
1,746,053
43,826
276,508
201,512 **
156,737
2,424,636 **
1992
1,811,941
53,316
326,184
221,856
113,261
2,526,558
1993
1,895,333
173,310
327,434
196,200
112,248
2,704,525
1994
2,109,202
145,229
343,731
195,964
195,320
2,989,446
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
*Includes General, Special Revenue
and Debt Service Funds
* *Reclassification Among These Categories
Performed in 1991
75
(This Page Intentionally Left Blank)
76
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CITY OF SCHERTZ, TEXAS
ASSESSED AND ESTIMATED ACTUAL VALUE OF PROPERTY TABLE 4
78
FISCAL
ESTIMATED
LEVY
YEAR
ACTUAL
ASSESSMENT
ASSESSED
TAX
TAX
YEAR
ENDED
VALUES
PERCENTAGE
VALUATIONS
RATE
LEVY
1988
09 -30 -88
$379,674,429
100`k
$285,978,200
.24705%
$ 76,369
1989
09 -30 -89
284,253,725
100
290,606,339
.2576
748,602
1990
09 -30 -90
376,676,293
100
287,272,356
.3183
914,388
1991
09 -30 -91
340,903,727
100
272,593,690
.3689
1,005,598
1992
09 -30 -92
269,351,284
100
268,170,123
.3889
1,042,914
1993
09 -30 -93
256,861,608
100
259,038,486
.4255
1,102,209
1994
09 -30 -94
264,286,116
100
258,766,426
.4684
1,212,063
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
78
CITY OF SCHERTZ, TEXAS
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS TABLE 5
79
COUNTY
YEAR **
CITY
SCHOOL
COUNTY
ROAD
100`b
100%
100`b
100%
ASSESSMENT
ASSESSMENT
ASSESSMENT
ASSESSMENT
RATE*
RATE*
RATE
RATE
1988
.24705%
.783 %
.2852%
.0820`b
1989
.2576
.8882
.1522
.0950
1990
.3183
1.00561
.1418
.0977
1991
.3689
1.20513
.2720
.0850
1992
.3889
1.4777
.3599
.0850
1993
.4255
1.4499
.3036
.0950
1994
.4684
1.3095
.2995
.0867
1995
.4275
1.3712
.3018
.0833
1996
.4072
1.4089
.2997
.0758
1997
.3554
1.4299
.3040
.0730
*All
rates shown are per $100 assessed valuation.
* *Year
shown is the fiscal year of collection.
Taxes
were
levied the previous calendar year.
79
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
80
NET
RATIO
GENERAL
OF NET
BONDED
BONDED DEBT
DEBT PER
FISCAL
YEAR
ESTIMATED
ASSESSED
NET GENERAL
TO ASSESSED
CAPITA
September
30,
1988
12,580
$285,978,200
$758,401
.27
$60.29
September
30,
1989
12,580
290,606,339
755,115
.26
60.03
September
30,
1990
10,681*
287,272,356
732,510
.25
68.58
September
30,
1991
10,900
272,593,690
715,300
.26
65.62
September
30,
1992
11,500
268,170,123
687,715
.26
59.80
September
30,
1993
12,000
259,038,486
' 1,190,649 **
.46
99.22
September
30,
1994
12,500
258,766,426
1,132,128
.43
90.57
September
30,
1995
13,500
312,676,505
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
*Based on Preliminary 1990 Census. This estimate has
been challenged by the City.
* *Includes General Bonded Debt Issued During Current Year
80
CITY OF SCHERT2, TEXAS
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
YEAR ENDED SEPTEMBER 30, 1997
*Bexar County
*Comal County
*Comal 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
(3.98`b OF ASSESSED VALUE -
$1,163.03 PER CAPITA)
*Source of Data - Texas Municipal Reports,
City of Schertz, November, 1997
Compiled and Published by Municipal
Advisory Council of Texas
81
TABLE 7
$17,445,424
DIRECT AND
NET
ESTIMMED
ESTIMATED
BONDED
PERCENT
OVERLAPPING
DEBT
APPLICABLE
BONDED DEBT
$137,517,269
.02%
$ 27,503
3,366,449
.09
3,030
57,339,148
.12
68,807
2,435,000
14.75
359,163
20,449,015
51.88
10,608,949
58,835,000
.02
11,767
$11,079,219
6,366,205
100.00%
6,366,205
$17,445,424
CITY OF SCHERTZ, TEXAS
LEGAL DEBT MARGIN
YEAR ENDED SEPTEMBER 30, 1997 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.
82
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
83
PERCENT
OF DEBT
DEBT
SERVICE TO
SERVICE
GENERAL
FISCAL
YEAR
PRINCIPAL
INTEREST
TOTAL
EXPENDITURES*
EXPENDITURES
September
30,
1988
$ 24,000
$72,900
$96,900
$1,878,246
5.2%
September
30,
1989
39,000
54,758
93,758
2,046,171
4.3
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
1.20,000
65,540
185,540
3,746,737
4.95
*Includes General, Special Revenue, and Debt Service Funds
83
(This Page Intentionally Left Blank)
84
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CITY OF SCHERTZ, TEXAS
WATERWORKS AND SEWER SYSTEM FUND
REVENUE BOND REQUIREMENTS AND RESTRICTED FUNDS
YEAR ENDED SEPTEMBER 30, 1997
UTILITY SYSTEM REVENUE BONDS, SERIES 1973:
Principal Payment, Due September 1, 1998
Interest Payment, Due March 1, 1998
UTILITY SYSTEM REVENUE BONDS, SERIES 1987:
Principal Payment, Due September 1, 1998
Interest Payment, Due March 1, 1998
Total Requirements
CASH - RESTRICTED
OVER (UNDER) REQUIREMENTS
RESERVE FUND REQUIREMENT
ANNUAL
PRINCIPAL/
SEMI - ANNUAL
INTEREST
$40,000
2,444
15,000
31,063
TABLE 11
REQUIREMENT
AT
SEPTEMBER 30,
BASIS 1997
1 /12th $ 3,333
1 /6th 407
1 /12th 1,250
1 /6th 5,177
$10,167
26,418
$16,251
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, 1997 met these requirements.
1 ;1 Time Average Annual Principal and Interest
Requirement (Annual $138,073)
Cash and Cash Equivalents
FUNDS AVAILABLE OVER (UNDER) REQUIREMENT
86
$207,110
434,413
$227,303
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
87
LEVEL IN
PER
YEARS OF
CAPITA
MEDIAN
FORMAL
SCHOOL
UNEMPLOYMENT
FISCAL
POPULATION
INCOME
AGE
EDUCATION
ENROLLMENT
RATE IN $
YEAR
(1)
(2)
(3)
(3)
(4)
(3)
1988
12,580
Est.
$ 8,300
41
12
2,334
6.2%
1989
12,580
Est.
8,300
41
12
3,980
7.3
1990
10,597
Act.
9,600
42
12
4,175
4.6
1991
10,900
Est.
13,436
35
14
4,309
6.3
1992
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
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
87
(This Page Intentionally Left Blank)
88
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CITY OF SCHERTZ, TEXAS
PRINCIPAL TAXPAYERS
YEAR ENDED SEPTEMBER 30, 1997
TABLE 14
90
1996
PERCENTAGE OF
ASSESSED
TOTAL ASSESSED
PRINCIPAL TAXPAYERS
TYPE OF BUSINESS
VALUATION
VALUATION
1.
Eric W. White
Real Estate
$ 5,720,267
1.51%
2.
PSPI, Inc.
Machine Fabricating
4,597,492
1.21
3.
Negley Paint Co., Inc.
Industrial
3,599,250
0.95
4.
American Freightways Corp.
Transportation
3,424,614
0.90
S.
Sycamore Creek Partners
Apartments
3,359,231
0.89
6.
Garden Ridge Pottery
Mercantile
3,059,174
0.81
7.
Guadalupe Valley Electric
Utility
2,453,730
0.65
8.
Riedel Family Partners, Ltd.
Investment
Properties
2,403,202
0.64
9.
CMH Parks, Inc.
Mobile Home Park
2,289,493
0.60
10.
Southwestern Bell
Telephone Co.
Telephone Utility
2,023,510
0.53
$ 32,929,963
8.69%
Other Assessed Properties
345,854,088
91.31
TOTAL ASSESSMENTS
$378,784,051
100.00%
90
CITY OF SCHERTZ, TEXAS
MISCELLANEOUS STATISTICS
YEAR ENDED SEPTEMBER 30, 1997 TABLE 15
Date of Incorporation:
December, 1958
Date First Charter Adopted:
April, 1974
Date Present Charter Adopted:
Amended March, 1989
Form of Government:
Council- Manager
YEAR
SQUARE MILES
1997
24.15
1996
24.15
1995
24.15
1994
24.15
1993
24.15
1 992
24.15
1 991
23.75
1 990
23.75
1 989
22.42
1 988
22.42
Miles of Highways, Streets and Alleys
Streets and Highways, Paved
93.69 Miles
Streets, Unpaved
6.78 Miles
Alleys
3.44 Miles
Sidewalks
15.09 Miles
Miles of Sewer:
Storm
2.18 Miles
Sanitary
41.04 Miles
Building Permits:
VALUE OF
YEAR PERMITS ISSUED
BUILDINGS
1997
3,373
$71,741,172
1996
2,559
64,267,503
1995
2,066
21,150,682
1994
2,771
18,917,416
1993
2,167
25,705,848
1992
873
6,702,823
1991
545
7,667,699
1990
392
6,652,769
1989
407
6,762,584
1988
368
7,752,335
(Continued)
91
CITY OF SCHERTZ, TEXAS
MISCELLANEOUS STATISTICS
YEAR ENDED SEPTEMBER 30, 1997 TABLE 15
Fire Protection:
Number of Stations 1
Number of Employees (Full and Part -Time) 17
Number of Volunteers 30
Recreation:
Parks
7
Playgrounds
65
Other Recreational Facilities:
10,597
Baseball Fields
3
Softball Fields
2
Large Pavilion
10,000 Square Feet Covered
Small Pavilion
600 Square Feet Covered
Picnic Tables:
600
Uncovered
50
Restrooms:
Male
6
Female
6
Concessions Stands
1
Community Center
1
City Employees:
September 30, 1997 157
Elections:
Number of Registered Voters 9,000
Number of Votes in:
Last Municipal Election 1,378
Percentage of Registered Voters Voting in:
Last Municipal Election 15.0%
Source: Municipal Election Records
Population:
Census Population Count
1997 (Estimate)
15,000
1990
10,597
1980
7,260
1970
4,061
1960
2,281
1950
1,200
1940
600
92
GENERALLY ACCEPTED GOVERNMENTAL
AUDITING STANDARD REPORTS
93
(This Page Intentionally Left Blank)
94
The Honorable Mayor and
Members of the City Council
City of Schertz, Texas
Independent Auditor's Report on Internal Control Structure
Based on an Audit of General Purpose Financial Statements
Performed in Accordance with Government Auditing Standards
We have audited the general purpose financial statements of the City of Schertz,
Texas, as of and for the year ended September 30, 1997, and have issued our report
thereon dated December 23, 1997.
We conducted our audit in accordance with generally accepted auditing standards
and Government Auditing Standards, issued by the Comptroller General of the United
States. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the general purpose financial statements are free
of material misstatement.
The management of the City of Schertz, Texas, is responsible for establishing and
maintaining an internal control structure. In fulfilling this responsibility,
estimates and judgments by management are required to assess the expected benefits and
related costs of internal control structure policies and procedures. The objectives
of an internal control structure are to provide management with reasonable, but not
absolute, assurance that assets are safeguarded against loss from unauthorized use or
disposition, and that transactions are executed in accordance with management's
authorization and recorded properly to permit the preparation of financial statements
in accordance with generally accepted accounting principles. Because of inherent
limitations in any internal control structure, errors or irregularities may
nevertheless occur and not be detected. Also, projection of any evaluation of the
structure to future periods is subject to the risk that procedures may become
inadequate because of changes in conditions or that the effectiveness of the design and
operation of policies and procedures may deteriorate.
In planning and performing our audit of the general purpose financial statements
of the City of Schertz, Texas, for the year ended September 30, 1997, we obtained an
understanding of the internal control structure. With respect to the internal control
structure, we obtained an understanding of the design of relevant policies and
procedures and whether they have been placed in operation, and we assessed control risk
in order to determine our auditing procedures for the purpose of expressing our opinion
on the general purpose financial statements and not to provide an opinion on the
internal control structure. Accordingly, we do not express such an opinion.
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
JOHN LEIF. 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. (RETIRED) 95
Thompson,
Williams,
er, dig
Bie ie ig
NORTH TOWER
r CERTIFIED PUBLIC ACCOUNTANTS
800 N.W. LOOP 410, SUITE 30ON
SAN ANTONIO, TEXAS 78216 -5611
210/341 -2581
FAX 210/341 -2588
MEMBERS AMERICAN INSTITUTE OF
Young, CERTIFIED PUBLIC ACCOUNTANTS
L.C.
The Honorable Mayor and
Members of the City Council
City of Schertz, Texas
Independent Auditor's Report on Internal Control Structure
Based on an Audit of General Purpose Financial Statements
Performed in Accordance with Government Auditing Standards
We have audited the general purpose financial statements of the City of Schertz,
Texas, as of and for the year ended September 30, 1997, and have issued our report
thereon dated December 23, 1997.
We conducted our audit in accordance with generally accepted auditing standards
and Government Auditing Standards, issued by the Comptroller General of the United
States. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the general purpose financial statements are free
of material misstatement.
The management of the City of Schertz, Texas, is responsible for establishing and
maintaining an internal control structure. In fulfilling this responsibility,
estimates and judgments by management are required to assess the expected benefits and
related costs of internal control structure policies and procedures. The objectives
of an internal control structure are to provide management with reasonable, but not
absolute, assurance that assets are safeguarded against loss from unauthorized use or
disposition, and that transactions are executed in accordance with management's
authorization and recorded properly to permit the preparation of financial statements
in accordance with generally accepted accounting principles. Because of inherent
limitations in any internal control structure, errors or irregularities may
nevertheless occur and not be detected. Also, projection of any evaluation of the
structure to future periods is subject to the risk that procedures may become
inadequate because of changes in conditions or that the effectiveness of the design and
operation of policies and procedures may deteriorate.
In planning and performing our audit of the general purpose financial statements
of the City of Schertz, Texas, for the year ended September 30, 1997, we obtained an
understanding of the internal control structure. With respect to the internal control
structure, we obtained an understanding of the design of relevant policies and
procedures and whether they have been placed in operation, and we assessed control risk
in order to determine our auditing procedures for the purpose of expressing our opinion
on the general purpose financial statements and not to provide an opinion on the
internal control structure. Accordingly, we do not express such an opinion.
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
JOHN LEIF. 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. (RETIRED) 95
(This Page Intentionally Left Blank)
96
Independent Auditor's Report on Internal Control Structure
Based on an Audit of General Purpose Financial Statements
Performed in Accordance with Government Auditing Standards (Continued)
Reportable conditions involve matters coming to our attention relating to
significant deficiencies in the design or operation of the internal control structure
that, in our judgment, could adversely affect the entity's ability to record, process,
summarize, and report financial statements.
A material weakness is a reportable condition in which the design or operation of
one or more of the specific internal control structure elements does not reduce to a
relatively low level the risk that errors or irregularities in amounts that would be
material in relation to the general purpose financial statements being audited may
occur and not be detected within a timely period by employees in the normal course of
performing their assigned functions. We noted no matters involving the internal
control structure and its operations that we consider to be material weaknesses as
defined above.
Our consideration of the internal control structure would not necessarily disclose
all matters in the internal control structure that might be material weaknesses as
defined above.
This report is intended for the information of the City of Schertz, Texas'
management and city council. However, this report is a matter of public record, and
its distribution is not limited.
San Antonio, Texas
December 23, 1997
u6�
Certified Public Accountants
97
(This Page Intentionally Left Blank)
98
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
Thompson,
Williams,
Biediger,
K for
Young,
L.C.
CERTIFIED PUBLIC ACCOUNTANTS
MEMBERS AMERICAN INSTITUTE OF
CERTIFIED PUBLIC ACCOUNTANTS
Independent Auditor's Report on Compliance
Based on an Audit of General Purpose Financial Statements
Performed in Accordance with Government Auditing Standards
We have audited the general purpose financial statements of the City of Schertz,
Texas, as of and for the year ended September 30, 1997, and have issued our report
thereon dated December 23, 1997.
We conducted our audit in accordance with generally accepted auditing standards
and Government Auditing Standards, issued by the Comptroller General of the United
States. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the general purpose financial statements are free
of material misstatement.
Compliance with laws, regulations, contracts, and grants applicable to the City
of Schertz, Texas, is the responsibility of the City's management. As part of
obtaining reasonable assurance about whether the financial statements are free of
material misstatement, we performed tests of the City's compliance with certain
provisions of laws, regulations, contracts, and grants. However, the objective of our
audit of the general purpose financial statements was not to provide an opinion on
overall compliance with such provisions. Accordingly, we do not express such an
opinion.
The results of our tests disclosed no instances of noncompliance that are required
to be reported under Government Auditing Standards.
This report is intended for the information of the City of Schertz, Texas'
management and city council. However, this report is a matter of public record and its
distribution is not limited.
Certified Public Accountants
San Antonio, Texas
December 23, 1997
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.
JOHN LEIF, 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. 99
JAMES T. McCARTY C.P.A. (RETIRED)