CAFR FY 1992-93
.
I
COMPREHENSIVE
-ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED
SEPTEMBER 30, 1993
CITY OF SCHERTZ, TEXAS
CITY OF SCHERTZ, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 1993
CITY OF SCHERTZ, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 1993
CITY OFFICIALS
MAYOR
Honorable Earl W. Sawyer
CITY COUNCIL
Kenneth Greenwa ld - Mayor Pro-Tern
(May to September 1993)
Mary Marsh - Mayor Pro-Tern
(November 1992 to April 1993)
Barbara Stanhope - Mayor Pro-Tern
(June to October 1992)
Harold D. Baldwin
Joe Potempa
CITY MANAGER
Kerry R. Sweatt
INDEPENDENT AUDITORS
Leal, Carter & Rocha, P.C.
San Antonio, Texas
OFFICIALS ISSOING REPORT
Kerry R, Sweatt
City Manager
Debra Kline
Finance Director
1
CITY OF SCHERTZ, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED SEPTEMBER 30, 1993
TABLE OF CONTENTS
Paqe No.
INTRODUCTORY SECTION:
Letter of Transmittal
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7-14
Organization Chart ................................... lS
GFOA Certificate of Achievement ...................... 16
FINANCIAL SECTION:
Independent Auditor's Report ......................... 20
General Purpose Financial Statements:
Combined Balance Sheet - All Fund Types
and Account Groups ...............................
23-26
Combined Statement of Revenues, Expenditures
and Changes in Fund Balances - All
Governmental Fund Types ..........................
28
Combined statement of Revenues, Expenditures
and Changes in Fund Balances - Budget and
Actual - General and Debt Service Fund Types
30
Combined Statement of Revenues, Expenses
and Changes in Retained Earnings -
All proprietary Fund Types .......................
31
Combined Statement of Cash Flows -
All Proprietary Fund Types .....................
32-33
Notes to the Financial Statements ..................
36-59
2
Paae No.
SUDDlemental Information
Combining, Individual Fund and Account Group
statements and Schedules:
General Fund:
Comparative Balance Sheets ......................... 63
Comparative Statements of Revenues,
Expenditures and Changes in Fund Balances
64
Schedule of Revenues Compared to Budget ............ 65
Schedule of Expenditures Compared to Budget ........ 66
Debt Service Fund:
Comparative Balance Sheet
. . . . . . . . . . . . . . . . . . . . . . . . . .
69
Comparative Statements of Revenues,
Expenditures and Changes in Fund Balances -
Budget and Actual ................................ 70
capital Projects Funds:
Combining Balance Sheet
. . . . . . . . . . . . . . . . . . . . . . . . . . . .
73
Combining Statement of Revenues,
Expenditures and Changes in Fund Balances ........ 74
Enterprise Funds:
Combining Balance Sheet ............................
77-78
Combining Statement of Revenues, Expenses and
Changes in Retained Earnings .....................
79
Combining Statement of Cash Flows ..................
80-81
3
General Fixed Assets Account Group:
Schedule of General Fixed Assets -
By Source ....................................
Schedule of General Fixed Assets -
By Function and Activity.....................
STATISTICAL SECTION:
General Government 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 ....................................
Ration of Net General Obligation Bonded
Debt to Assessed Value and Net General
Obligation 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 ...................................
Revenue Bond Coverage
Water and Sewer Fund
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 yeras ................
4
Table
No.
page
No.
86
87-88
1
89
2
92
3
93
4
94
5
95
6
96
7
97
8
98
9
99
10-1 101-102
10-2
103-104
11
105
12
107-108
Principal Taxpayers ..............................
Miscellaneous statistics .........................
5
Table paqe
No. No.
13
109
14
111-112
INTRODUCTORY SECTION
6
KERRY R. SWEAlT
crrv MANAGER
January 21, 1994
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, 1993 is
submitted herewith. Responsibility for both the accuracy of the
presentation including all disclosures rests with the city. The
data, as presented, is accurate to the best of our ability in all
material aspects. The report is presented in a manner designed to
set forth the financial position of the City and a review of various
funds. We have attempted to provide all disclosures necessary to
enable the reader to gain maximum understanding of the City's
financial activity.
The accompanying CAFR report is presented in the following three
sections:
1. Introduction - Includes this letter of transmittal, Table of
organization, comments regarding economic conditions and
outlook, major occurrences of FY 92-93, and major
initiatives for FY 93-94.
7
2. Financial - This section consists of: The Independent Auditors
Report, General Purpose Financial statements including combined
balance sheets and combined statements of revenue and
expenditures and changes in fund balance, notes to financial
statements, and individual fund statements and account group
with supplemental statements. Within information contained in
this section is a review of the accounting system, and controls
and includes commentary thereto.
3. stat.istical - This section includes selected financial and
demographic information, generally presented on a muti-year
basis.
This report includes all funds and account groups of the City of
Schertz. The City provides a full range of services including:
police and fire protection; water and sewer services; waste
collection; code enforcement; comprehensive planning; street
maintenance and recreational activities as well as economic
development efforts. While the Schertz Public library is an
operating department of city government, the Library Board serves as
an advisory board and maintains a small amount of funds, derived
from private sources, as a means to fund specific
improvements/additions to the Library outside City resources. The
Schertz Volunteer Fire Department Board has not met the criteria for
inclusion in the reporting entity, and accordingly, are excluded
from this report.
8
ECONOMIC CONDITION AND OUTLOOK
The City is located near the center of the San Antonio standard
statistical metropolitan area which continues to rank as one of the
highest tourist attraction areas in the Southwest. The economic
condition and outlook of the area has improved substantially over
the last year and signs of recovery appear in a number of areas.
Housing starts, indicated by 245 single family residential permits
issued this year through September 30 as compared to 50 for the
comparable period of 1992; and total permit values of $25,705,848
(commercial and residential) as compared to $6,702,823 for 1992 will
have a significant impact in the next year. Over 500 new single
family lots recently master planned clearly indicate major
improvement in our economy and strength of the local housing market.
CURRENT YEAR PROJECTS
Recent new developments as well as enhancement of existing
businesses shows a renewed enthusiasm, and the attitude that
"nothing breeds success like success" seems to effect relocation and
growth activity for our area. A positive outlook is shared by all
involved in the community's Economic Development Task Force
activities. The City is currently working with several substantial
prospects to relocate to the area. We continue to receive an
ever larger number of inquiries which is another positive economic
sign. One of the major strengths of the City is an abundance of land
available for development along the San Antonio/Austin corridor of
I-35 and similarly available land for development along the corridor
between Houston/San Antonio of IH-10.
MAJOR INITIATIVES
During the coming year we believe the City will benefit from the
generally positive outlook. Renewed interest and emphasis in
community development in the form of revisions to the City's
comprehensive plan further enhance that sense of optimism and tend
to compliment economic development activities.
Several street and water improvement projects; implementation of 24
hour, full-time Fire Department staffing; establishment of a Public
Works Department; and a number of capi tal item purchases are
anticipated for the upcoming fiscal year.
Accomplishments during FY 92-93 include: Recently completed
expansion of IH-35 and expansion of F.M. 3009 currently underway,
each provide major improvements to our local roadway infrastructure
and stimulates additional economic activity through improved traffic
flow. The Schertz Development Foundation is marketing land in a
foundation commercial/ industrial area. The establishment of an
after-hours message system has proven to be of benefit in
encouragement of citizen participation.
9
FINANCIAL INFORMATION
The City's accounting records for general governmental operations
are maintained on a modified accrual basis, with revenues being
recognized when they become both measurable and available and
expenditures being recognized when the services or goods are
received and the liabilities are incurred. Accounting records for
the City's utilities and other enterprises are maintained on the
accrual basis of accounting.
In developing and altering the City's accounting systems,
consideration has been given to the adequacy of internal accounting
controls. Internal accounting controls have been designed to
provide reasonable assurance regarding:
* The safeguarding of assets against loss from unauthorized
use or 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, 1993.
General Governmental Functions. Revenues which include General,
Special Revenue, Debt Service and Capi tal proj ects for general
governmental function totaled $2,965,012 in 1993, an increase of
13.0% from 1992. Taxes produced 63.9% of general revenues compared
to 69.1% last year. The amount of revenues from various sources and
the increase/decrease from last year are shown in the following
tabulation:
10
Amount
Percent
of
Total
Increase
(Decrease)
From 1992
Taxes (property, sales, etc.)
Licenses and permits
Charges for Services
Fines and forfeits
other revenues
$1,895,333
173,310
327,434
196,200
372.735
$2,965.012
63.9%
5.9%
11.0%
6.6%
12.6%
100.0
$ 83,392
119,994
1,250
(25,656)
162.962
$341.942
Expenditures. For general governmental purposes, expenditures
totaled $2,879,295, an increase of 15.4% from 1992. Changes in
levels of expenditures for major functions of the City over the
preceding year are shown in the following tabulation:
Percent Increase
of (Decrease)
Function Amount Total From 1992
General Government $ 741,305 25.8% $ 52,223
Public Safety 924,222 32.1% 80,640
Streets and Parks 373,213 13.0% 21,120
Health Services 75,441 2.6% 8,795
Recreation 137,228 4.8% 13,891
Economic Development 37,426 1.3% 698
Capital outlay 394,141 13.7% 194,814
Debt Service 196.319 6.7% 12.748
$2.879.295 100.0 $ 384,929
As reflected in the financial statements, general fund revenues
including sales tax have generally increased with ad valorem taxes,
which increased as a result of a tax rate increase of 2.00 cents per
$100 value being one of the most significant areas. Through
cooperative agreements with Guadalupe County, specific
intergovernmental payments for services such as library, fire and
S.A.F.E.S. have increased. other major fluctuations include: a
decrease in construction permit related items due to a slow down in
single family home construction. General Fund expenditures have
increased in a number of areas including overall personnel costs
resulting from step increase and in areas of insurance premiums
resulting from experience modification. A major shift in
expenditures from the previous year as a result of a systematic plan
to realign expenditures to more accurately reflect actual cost for
specific functions and demonstrate true cost centers by activity or
function has resulted in an overall slight increase of General Fund
Expenditures.
11
Debt Administration. The ratio of net bonded debt to assessed
valuation and the amount of bonded debt per capita are useful
indicators of the City's debt position for municipal
management, citizens, and invest~:s~Bonded debt data for the
City of Schertz at the end of 19~iscal year were as follows:
,,/
I (J j,.j.A.~I-;~
er .(l//"'-../ , C
Amount
Ratio of Debt
To Assessed
Value (100%)
Of Present
Market
Debt Per
Cat'ita
Net Bonded Debt
$1,190,649
.46%
$99.22
Moody's
Investors
Service
General obligation Bonds
Revenue Bonds
Baa-1
A
Property Taxes. Current tax collections are 98.3% 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 99.9%.
Allocations of property tax levy by purpose for 1993 and the
preceding two fiscal years are as follows (amounts per $100 assessed
value) :
Purpose
General Fund
General Obligation Debt
1993
.3512
.0743
.4255
1992
.3185
.0704
.3889
1991
.3063
.0626
.3689
Cash Management. Cash temporarily idle during the year was invested
in short term time deposits. The interest earned on such deposits
during the year was $81,630, a decrease of $9,414 interest earned on
temporary investments during 1992. The decrease is again
attributable to the lower overall interest rate available. Bank
deposits and certificates of deposits are secured by FDIC Insurance
and governmental securities pledged by Schertz Bank and Trust and
held in safe keeping by Frost Bank.
12
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, 1993, the general fixed assets of the City amounted to
$9,902,939. 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 l{I) and 5 to the financial statements.
The City is self insured on physical damage to specific vehicles.
In order to provide coverage for this, risk funds are designated in
the general fund with a balance of $45,000 at September 30, 1993.
Water and Sewer System. During the fiscal year ended September
30, 1993, net revenues in the water-sewer system decreased.
However, the City met all required debt indenture revenue bond
reserves. Comparative data for the past two fiscal years is
presented below:
1993
1992
Total operating revenue
Operating income (gross revenues
less operating expenses)
Net revenues (operating income
plus depreciation less solid
waste revenues)
Average annual debt requirements
$1,617,768
$1,487,049
(159,272)
(109,032)
177,825
279,458
126,697
79,961
During the year, $90,000 of regularly maturing revenue bonds and
$65,000 in certificates of obligation, $4,000 in Public Facility
Bond from HOD and $37,213 of a Note Payable were retired in the
Water and Sewer Fund.
Schertz Area Facility for Emergency Services (SAFES). During the
fiscal year ended September 30, 1993, SAFES increased its revenue
19% and increased operating expenses by 2.5%. SAFES is fully
dependent on income fees generated from services rendered and the
contracted cities' support to cover operations costs. This year
SAFES had an operating income before depreciation of $51,257, this
is net of a charge for future uncollectible accounts of $53,375 that
was taken against the operating expenses for the current year.
13
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,
1992. 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
uni t 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 five consecutive years. We believe our current report
continues to conform to the certificate of Achievement Program
requirements, and we are submitting it to GFOA.
The City Council has selected the firm of Leal, Carter and Rocha,
P.C. of San Antonio, Texas to perform the independent audit for the
FY 1992-1993. 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.
Acknowledgments. I want to extend my thanks to the Mayor and
members of the City Council for their interest and support in
planning and conducting the financial operations of the City in an
effective and efficient manner. Ms. Debra Kline of our staff and
representatives of the audit firm of Leal, Carter & Rocha, P.C.
have provided a high degree of expertise and assistance for the
preparation of the report and I wish to express my personal thanks
and appreciation for their help.
Respectively Submitted,
--1.J~ ~fft.v
Debra Kline
Finance Officer
14
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Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Schertz,
Texas
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 1992
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
~da~ingovenunentaccounting
and financial reporting.
~~
President
tfh/~
Executive Director
16
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17
FINANCIAL SECTION
18
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19
LEAL, CARTER Be ROCHA, P.C.
CERTIFIED PUBUC ACCOUNTANTS
FRANK J. LEAl- C.P.A.
RoBERTO CARTER. C.P.A.
BILL C. RocHA. C.P.A.
8002 WEST AVENUE. SUITE 4
SAN ANTONIO. TEXAS 78213- 1 865
TELEPHONE. <2101 342.3562
FAX (2101342-7931
RoBERT V. HERRERA
MEMBERS:
AMERICAN INSTITUTE OF
CERTIFIED PuBLIC ACCOUNTANTS
IndeDendent Auditor'S ReDort
To the City Council and audit committee of the City of Schertz,
Texas:
We have audited the accompanying general purpose financial statements of
the City of Schertz, Texas (The City), as of and for the year ended
September 30, 1993, as listed in the table of contents. These financial
statements are the responsibility of the City'S management. Our
responsibility is to express an opinion on these financial statements based
on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements. An audit includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
In our opinion, the general purpose financial statements referred to above
present fairly, in all material respects, the financial position of the
City, at September 30, 1993, and the results of its operations and cash
flows of its proprietary types for the year then ended, in conformity with
generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the general
purpose financial statements taken as a whole. The combining, individual
funds, and individual account group financial statements and schedules are
presented for purposes of additional analysis and are not a required part
of the general purpose financial statements of the City. Such information
has been subjected to the auditing procedures applied in the examination
of the general purpose financial statements and, in our opinion, is fairly
stated in all material respects in relation to the general purpose
financial statements taken as a whole.
The information included in the Statistical Data ,as listed in the table
of contents, has been summarized from the City'S records and was not
subjected to the audit procedures that were applied in the audit of the
general purpose financial statements. Accordingly, we express no opinion
on such information.
thereon.
~ I ~ <t ;(.-c.-4, ;J. ~ .
January 21, 1994
20
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21
GENERAL PURPOSE FINANCIAL STATEMENTS
22
City of Schertz, Texas
Combined Balance Sheet - All Fund Types and Account Groups
September 30, 1993
Governmental Fund Types
Assets and other debits
General
Assets:
Cash and cash equivalents
Investments
Receivables (net of allowances):
Interest
Taxes
ACCOU"lts
Due from other funds
Inventory of supplies, at cost
Other Receivables
$54,992
482,306
67,758
13,624
51,176
18.605
33
Restricted assets:
Cash and cash equivalents
Investments
Fixed assets (net of accumulated depreciation)
Organization costs (net of accumulated amortization)
Other debits:
Amount available in debt service fund
AmoU"lt to be provided for retirement of general
long term debt
AmoU"lt to be provided for ~loyee c~ated
absences
Total assets
S688,494
--------------------------------------------
--------------------------------------------
The accompanying notes are an integral part of these statments.
23
Special
Revenue
$4,753
12.216
$16,969
Debt
Service
Capi tal
Projects
161,351 $276,298
1,308,212
13,824
3,013
$75,175 $1,587,523
Proprietary Fund Types Account Groups
Enterprise
$62,085
66,990
280,494
42,239
82,069
29,021
712,691
5,298,416
811
$6,574,816
Internal
Service
$10,485
2,617
61,820
$74,922
General Fixed
Assets
$
9,902,939
$9,902,939
General Long
Term Debt
$
43,965
2,058,035
83,790
$2,185,790
Totals
(Memorandum Only)
1993
$469,964
1,869, n4
3,013
81.582
294,118
93,415
103,291
33
29,021
712,691
15,263,175
811
43,965
2,058,035
83.790
$21,106,628
1992
$346,568
1,357,696
3,013
80,602
254,938
357,762
86,627
33
657,169
14,912,nO
859
51 ,990
1,552,010
n,632
$19,739,619
============================ =============================== ============== ==============
(Continued)
24
City of Schertz, Texas
Combined Balance Sheet - All Fund Types and Account Groups
September 30, 1993
Governmental Fund Types
--------------------------------------------
Special
Revenue
Debt
Service
Capital
Projects
liabilities, equity and other credits
General
--------------------------------------------
liabiL ities:
Vouchers Payable
Notes Payable
Compensated absences payable
Payable from restricted assets:
Deposits
Revenue bond
Certificates of obligation
Public facility loan (HUD)
Due to other funds
Accrued vacation and sick leave
Deferred revenue
General obl igation bonds payable
Revenue bonds payable
Certificates of obligation payable
Contractual obligations bonds payable
Public facility loan (HUD)
Note Payables (less current maturities)
Accrued interest
139,691
35,963
$ $
$10,000
115 17,386
69,581
67,758
13,824
Total liabilities
143.412
115
31,210
79,581
Equity and other credits:
Contributed capital
Investment in general fixed assets
Retained earnings:
Reserved for revenue bond retirement
Reserved for equipment replacement
Unreserved
FI.I'ld ba lances:
Reserved for forfeited property
Reserved for inventory of supplies
Reserved for debt service
Unreserved:
Designated for economic development
Designated for equipment reLacement
Designated for self-insurance
Undesignated
18,605
43,965
18,821
15,144
45,000
447,512
16,854
1.507,942
Total retained earnings (deficit) I fund balances
545,082
16,854
43,965 1,507,942
Total fund equity and other credits
545,082
16,854
43,965 1,507,942
Total liabilities and fund equity
$688,494
$16,969
$75,175 $1,587,523
============================================
The accompanying notes are an integral part of these statments.
25
Proprietary Fund Types Account Groups
Enterprise
Internal
Service
$51,397
19,151
$
128,170
95,000
30,000
4,000
6,141 192
22,724 1,178
1,555,000
1,115,000
88,000
216,636
47,575
3,378,794
1,370
3,558,491
63,577
341,141
123,447
(827,057) 9,975
(362,469) 9,975
3,196,022
73,552
$6,574,816
$74,922
============================
General Fixed
Assets
$
9,902,939
9,902,939
$9,902,939
General Long
Term Debt
$
83,790
1,252,000
780,000
70,000
2,185,790
-------------------------------
-------------------------------
$2,185,790
Totals
(Memorandum Only)
1993 1992
$101,088
55,114
83,790
$100,371
77,632
128,170 111,800
95 , 000 90,000
30.000 65,000
4,000 3,000
93,415 357,762
23,902 24,266
81,582 80,602
1,252,000 689,000
1,555,000 1,650,000
1,895,000 1 ,760 ,000
70,000 100,000
88,000 93,000
216,636
47,575 50,201
-------------- ----------...---
5,820,272 5,252,634
-------------- --------------
3,622,068 3,543,067
9,902,939 9,517,621
341,141 $331,390
123,447 84,517
(817,082) (197,736)
3,159
18,605 12,855
43,965 51 ,990
18,821 21,324
15,144
45,000 45,000
1,972,308 1,073,798
-..------------ ----..---------
1,761,349 1,426,297
-------------- --------------
15,286,356 14,486,985
-------------- ----....--------
$21,106,628 $19,739,619
-------------- --------------
------------- --------------
26
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27
City of Schertz, Texas
Combined Statment of Revenue, Expenditures and Changes in Fund Balances
All Governmental Fund Types
For the Year Ended September 3D, 1993
(With comparative totals for September 30, 1992)
Revenues:
Taxes
Licenses and permits
Charges for services
Fines and forfeits
Other sources
Total revenues
Expenditures:
Current:
General government
Public safety
Streets and parks
Health
Recreation
Economic development
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses):
Proceeds of contractual obligation
Operating transfers in
Operating transfers (out)
Total other financial sources (uses)
Excess (deficiency) of revenues and other
financing sources over (under)
expenditures and other financing uses
Fund balances, October 1, 1992
General
$1,895,333
173,310
327,434
196,200
104,023
2,696,300
741,305
924,222
373,213
75,441
135,546
37,426
108,863
2,396,016
300,284
(184,792)
(184,792)
115,492
429,590
Totals
Governmental Funds (Memorandum Only)
Special
Revenue
$
4,n3
4,n3
1,682
1,682
3,041
3,041
13,813
Debt
Service
$
3,502
3,502
101,660
94,659
196,319
Capital
Projects
$
260,487
260,487
285,278
285,278
(192,817) (24,791)
184,792
184,792
620,000
200,000
820,000
(8.025) 795,209
51,990 712,733
1993
$1,895,333
173,310
327,434
196,200
3n,735
2,965,012
1992
$1,811,941
53,316
326,184
221,856
209,m
2,623,070
741,305 689,082
924,222 843,582
373,213 352,093
75,441 66,646
137,228 123,337
37,426 36,na
394,141 199,327
101,660 116,000
94,659 67,571
2,879,295
85,717
620,000
384,792
(184,792)
435,208
520,925
1,208,126
2,494,366
128,704
265,304
(182,343)
82,961
211,665
654,603
Residual equity transfers from other funds 341,858
$1,208,126
Fund balances, September 30, 1993
$545,082
$16,854
$43,965 $1,507,942
============================================
The accompanying notes are an integral part of these statments.
28
$1,n9,051
----------------------------
----------------------------
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29
City of Schertz, Texas
Combined Statement of Revenue, Expenditures and Changes in Fund Balances
Budget and Actual . General and Debt Service Fund Type
For the Year Ended September 30, 1993
Revenues:
Taxes
licenses and permits
Charges for services
Fines and forfeits
Other
Total revenues
Expenditures:
Current:
General government
Public safety
Streets and parks
Health
Recreation
Economic development
Capital outlay
Debt service:
Principal
Interest
Total expenditures
Excess of revenues over
(under) expenditures
Other financing sources (uses):
Operating transfers in
Operating transfers (out)
Total other financing sources (uses)
Excess (deficiency) of revenues and other
financing sources over expenditures
and other financing uses
Fund balances, October 1, 1992
Fund balances, September 30, 1993
Budget
General Fund
Vari ance
Favorable
Actual (Unfavorable)
Budget
$1,871,962 $1,895,333 $23,371 $
104,750 173,310 68,560
333,470 327,434 (6,036)
210,400 196,200 (14,200)
109,228 104,023 (5,205)
2,629,810 2,696,300
738,522
948,871
405,891
79,097
149,451
40,604
113,012
741,305
924,222
373,213
75,441
135,546
37,426
108,863
2,475,448 2,396,016
154,362
300,284
(184,792) (184,792)
(184,792) (184,792)
(30,430)
429,590
$399,160
115,492
429,590
$545,082
66,490
(2,783)
24,649
32.678
3,656
13,905
3,178
4,149
79 ,432
145,922
145,922
=====================================
$145,922
The accompanying notes are an integral part of these statments.
30
101,660
94,659
196,319
Debt Service Fund
Actual
$
3,502
3,502
101,660
94,659
196,319
(196,319) (192,817)
$184,792
184,792
(11,527)
51 ,990
$40,463
$184,792
184,792
(8,025)
51,990
$43,965
Variance
Favorable
(Unfavorable)
$
3,502
3,502
3,502
3,502
-------------------------------------
-------------------------------------
$3,502
City of Schertz, Texas
Combined Statement of Revenues, Expenses and Changes
in Retained Earnings. All Proprietary Fund Types
For the Year Ended September 30, 1993
(With comparative totals for September 30. 1992)
Enterprise
Operating revenue:
Fees charged to users
$2,029,454
Internal
Service
$30,484
Operating expenses before depreciation:
Personal services
Sewage treatment
General and administrative
Contractual services
Supplies/maintenance
Bad debts
2.029,454 30,484
492,576 23 , 606
414,719
204,133
254.201 12.680
328,590 15,397
53,375
Total operating revenue:
Total operating expenses before depreciation
1,747.594
Operating income before depreciation
281,860
Depreciation
411,968
Operating income/Closs)
(130,108)
Nonoperating revenue (expenses):
Interest income
Interest expense
Amortization
Loss on trade or sale of assets
Reimbursements
Other
33, 186
(298.382)
(48)
48,568
109
Total nonoperating revenues (expense)
(216.567>
Net income (loss) before operating interfund transfers
(346,675)
Operating transfers . in (out)
(227,341)
Net income/Closs)
(574,016)
Retained earnings, October 1, 1992
211,547
Residual equity transfers out
Retained earnings (deficit), September 30, 1993
(5362,469)
======-=====================
59,975
The accompanying notes are an integral part of these statments.
31
51.683
(21,199)
2,791
(23.990)
(23,990)
27,341
3,351
6,624
Totals
(Memorandum Only)
1993
1992
$2,059,938 $1,889,851
-------------- --------------
2.059,938 1,889,851
516,182 495,936
414,719 405,282
204,133 243,386
266,881 183,232
343,987 233.930
53,375 41 ,374
-------------- --------------
1 ,799,277 1,603,140
260,661 286,711
414,759 413,208
-------------- --------------
(154,098) (126,497>
-------------- --..-----------
33. 186 58,188
(298,382) (296,210)
(48) (48)
(12,591)
48,568 16,847
----..--------- --------------
(216,567> (233,814)
-------------- --------------
(370,665) (360,311)
(200.000) (78,561)
-------------- ----------..-..-
(570.665) (438,872)
218,171 1.063,217
(406,174)
-------------- --------------
(5352.494) 5218,171
============== --------------
--------------
City of Schertz, Texas
Combined Statement of Cash Flows - All Proprietary Fund Types
For The Year Ended September 30, 1993
(With comparative totals for September 30. 1992)
Enterprise
Funds
Cash flows from operating activities:
Cash received from customers
Cash payments to suppliers for
goods and services
Cash payments to employees
for services
Other
$1,952,105
(1,398,632)
(492,441)
51,368
Net cash provided by operating activities
112,400
Cash flows from non-capital financing activities:
Residual equity transfer
Operating transfers in (out)
(227,341)
Net cash provided from non-capital financing
activities:
(227,341)
Cash flows from capital and related financing
activities:
Acquisition and construction
of capital assets
Principal payments on long-term
debt
Proceeds from issuance of long-term debt
Interest paid on long-term debt
Capital contributed for capital
assets
(329,622)
(169,523)
473,000
(298,382)
Net cash used for capital and related financing
activities
(324,527>
Cash flows from investing activities:
Interest on investments
33, 186
Net increase in cash
(406,282)
Cash and cash equivalents, October 1, 1992
1,277,069
Cash and cash equivalents, September 30, 1993
$870, 787
====================================================
$10,485
S881,272 $1,283,045
C~rised of:
Current assets
Restricted assets
$129,075
741,712
$870,787
(Totals Memorandum Only)
Internal
Service
1993 1992
$30,484 $1,982,589 $1,938,646
(28,511) (1,427,143) (1,060,322)
(24,105) (516,546)
51,368
(484,170)
18,807
(22,132)
90,268
412,961
(341,859)
27,341
(200,000)
27,341
(200,000) (341,859)
(700) (330,322) (150,770)
(169,523) (138,000)
(298,382) (296,210)
1,100
(700) (798,227) (583,880)
33, 186
58,188
4,509 (401,773) (454,590)
5,976 1,283,045 1,737,635
$10,485
$139,560
741,712
$625,876
657,169
$10,485
S881,272 $1,283,045
====================================================
(continued)
The acc~anying notes are an integral part of these statments.
32
City of Schertz. Texas
Combined Statement of Cash Flows - All Proprietary Fund Types
For The Year Ended September 30. 1993
(~ith comparative totals for September 30, 1992)
Totals
(Memorandun
Only)
Internal
Enterprise Service
1993 1992
----------------------- ----------- -----------
Reconciliation of operating income (loss)
to net cash provided by operating activities:
Operating income (loss)
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities:
Depreciation/amortization
Provision for uncollectible accounts
Loss on sale of assets
Other
Change in assets and liabilities:
Decrease (increase) in accounts receivable
Increase in inventory
Increase (decrease) in accounts payable
Increase (decrease) in due to other funds
Derease (increase) in due from other funds
Increase (decrease)in accrued vacation
Decrease in interest receivable
Decrease in accrued interest payable
Decrease (increase) in customer deposits
(5130,108) (523,990) (5154,098) (5126,497)
412,016 2,791 414,807 413,256
41 .374
(121)
51,368 51,368 18,807
(33.790) (33.790) 19.912
(10,547) (367) (10,914) (13,814)
<7.654) (42) <7,696) 23,6n
(209,585) (25) (209,610) 108,704
26.823 26,823 (79 .077)
133 (499) (366) 11 , 766
151
(2.626) (2,626) (2,n8)
16,370 16,370 (2,444)
----..------ ----------- ----------- -----------
5112.400 ($22,132) 590,268 5412,961
=========== =========== =========== ===========
Supplemental disclosure:
Noncash capital and related financing transactions
Equipment from other funds
Acquisition and construction of capital asset
Cost of faci lhy
Note payable issued
534.363
5685
535,048
5
273,000
(273,000)
273,000
(273,000)
33
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34
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35
NOTES TO FINANCIAL STATEMENTS
The notes to the financial statements contain a summary of
significant accounting policies and other notes considered
necessary for a clear understanding of these statements.
36
CITY OF SCHERTZ, TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 1993
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. ReDortina Entitv
In evaluating how to define the City, for financial purposes,
management has considered all potential component units. The
decision to include a potential component unit in the reporting
entity was made by applying the criteria set forth in GAAP (NCGA
Statement #3 and #7 codified by GASB). The basic-but not the
only-criterion for including a potential component unit with the
reporting entity is the governing body's ability to exercise
oversight responsibility. The most significant manifestation of
this ability is financial interdependency. Other manifestations of
the ability to exercise oversight responsibility include, but are
not limited to, the selection of governing authority, the
designation of management, the ability to significantly influence
operations, and accountability for fiscal matters. A second
criterion used in evaluating potential component units is the scope
of public service. Application of this criterion involves
considering whether the activity benefits the City and/or its
citizens, or whether the activity is conducted within the
geographic boundaries of the City and is generally available to its
citizens. A third criterion used to evaluate potential component
units for inclusion or exclusion from the reporting entity is the
existence of special financing relationships, regardless of whether
the City is able to exercise oversight responsibilities.
NCGA statement #3 and #7 will be superseded by Governmental
Accounting Standards Board Statement (GASB) #14, "The Financial
Reporting Entity", effective for financial statements for periods
beginning after December 15, 1992. The City has elected not to
early implement this statement for the year ended September 30,
1993. The standard is required to be adopted no later than the year
ended September 30, 1994. This statement establishes new standards
for determining and reporting on the financial reporting entity.
37
CITY OF SCHERTZ, TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 1993
Note 1. Summary of significant Accounting Policies (continued)
A. Reoortinq Entitv (continued)
Based upon the applicable of these criteria, the following is a
brief review of each potential component unit addressed in defining
the City's reporting entity.
Included within the reporting entity:
Schertz Public Library. Schertz Public Library governing board is
appointed by the Schertz City Council and provides the majority of
its funding. The Library Fund ref lects the acti vi ty of this entity
and as the only fund it has been reported in the special revenue
fund of this report.
Excluded from the reporting entity:
Schertz Volunteer Fire Department Board. This board of local
citizens works to provide private additional funding for fire
equipment. This board is made up of private citizens not appointed
by the City Council and has no management control or direct
influence over operations of the Schertz Volunteer Fire Department.
All funds obtained by the board are used as the board sees fit with
the City having no authority, responsibility or obligation.
B. Fund Accountinq
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."
38
CITY OF SCHERTZ, TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 1993
Note 1. Summary of Significant Accountinq Policies (continued)
B. Fund Accountina (continued)
Governmental funds are used to account for all or most of a
government's general activities, including the collection and
disbursement of earmarked monies (special revenue funds), the
acquisition or construction of general fixed assets (capital
project funds), and the servicing of general long-term debt (debt
service funds). The general fund is used to account for all
activities of the City not accounted for in some other
fund.
Proprietary funds are used to account for activities similar to
those found in the private sector, where the determination of net
income is necessary or useful to sound financial administration.
Goods or services from such activities can be provided either to
outside parties (enterprise funds) or to other departments.
C. Basis of Accountina
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.
39
CITY OF SCHERTZ, TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 1993
Note 1. Summary of significant Accounting Policies (continued)
C. Basis of Accountinq (continued)
The modified accrual basis of accounting is used by all
governmental fund types. Under the modified accrual basis of
accounting, revenues are recognized when susceptible to accrual
(i.e., when they become both measurable and available).
"Measurable" means the amount of the transaction can be determined
and "available" means collectible within the current period or
soon enough thereafter to be used to pay liabilities of the
current period. The City considers property taxes as available if
they are collected within 60 days after year end. A one-year
availability period is used for revenue recognition for all other
governmental fund revenues. Expenditures are recorded when the
related fund liability is incurred. Principal and interest on
general long-term debt are recorded as fund liabilities when due
or when amounts have been accumulated in the debt service fund for
payments to be made early in the following year.
Those revenues 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.
40
CITY OF SCHERTZ, TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 1993
Note 1. Summary of Significant Accounting Policies (continued)
D. Budaets
The ci ty charter establishes requirements for the adoption of
budgets and related budgetary control. Budgetary preparation and
control is exercised at the departmental level. The City Council
must approve over-expenditures of appropriations or transfers of
appropriated amounts between departments. Amendments to budget
total are made only by the City Council. The city manager is
authorized to amend the budget without City Council approval by
transferring budget amounts between line items within a
department. During the year amendments were necessary, all
complied with city charter requirements.
Annual appropriated budgets are adopted for the general and debt
service funds. The budgets are prepared using the modified accrual
basis of accounting. All annual appropriations lapse at fiscal
year end. Project-length financial plans are adopted for all
capital projects funds. In addition, as part of the overall
budget process , budgets are adopted for the proprietary fund,
however, the City does not require a reporting as part of the
comprehensive annual financial report.
Encumbrances represent commitments related to unperformed
contracts for goods or services. Encumbrance accounting-under
which purchase orders, contracts and other commitments for the
expenditure of resources are recorded to reserve that portion of
the applicable appropriation-is utilized in the governmental
funds. Any encumbrances outstanding at year end are reported as
reservations of fund balances and do not constitute expenditures
or liabilities because the commitments will be honored during the
subsequent year.
E. Cash and Investments
Cash includes amounts in demand deposits as well as short-term
Certificates of Deposits with a maturity date within three months
of the date acquired by the City.
Investments generally consists of certificates of deposit with a
maturity date greater than three months of the date acquired by
the City and are recorded at cost, which approximates market
value.
41
CITY OF SCHERTZ, TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 1993
Note 1. Summary of significant Accounting Policies (continued)
F. Short-term Interfund Receivables/Pavables
During the course of operations, numerous transactions occur
between individual funds for goods provided or services rendered.
These receivables and payables are classified as "due from other
funds" or "due to other funds" on the balance sheet. Short-term
interfund loans are classified as "interfund
receivables/payables."
G. Inventories
Inventories are valued at cost, which
the first-in/first-out (FIFO) method.
fund-type inventories are recorded as
rather than when purchased.
approximates market, using
The costs of governmental
expenditures when consumed
H. Restricted Assets
Certain proceeds of enterprise fund revenue bonds, as well as
certain resources set aside for their repayment are classified as
restricted assets on the balance sheet because their use is
limited by applicable bond covenants. Funds are segregated to
report those proceeds of revenue bond issuances that are
restricted for use in construction. Funds are also segregated to
provide for debt services as provided under bond indenture
agreements.
I. Fixed Assets
General fixed assets are not capitalized in the funds used to
acquire or construct them. Instead, capital acquisition and
construction are reflected as expenditures in governmental funds,
and the related assets are reported in the general fixed assets
account group. All purchased fixed assets are valued at cost
where historical records are available and at an estimated
historical cost where no historical records exist. Donated fixed
assets are valued at their estimated fair market value on the date
received.
42
CITY OF SCHERTZ, TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 1993
Note 1. Summary of significant Accounting Policies (continued)
I. Fixed Assets (Continued)
The costs of normal maintenance and repairs that do not add to the
value of the asset or materially extend asset lives are not
capitalized. Improvements are capitalized and depreciated over
the remaining useful lives of the related fixed assets, as
applicable.
Public domain ("infrastructure") general fixed assets consisting
of roads, bridges, curbs and gutters, streets and sidewalks,
drainage system, and lighting systems are capitalized.
Assets in the general fixed assets account group are not
depreciated. Depreciation of buildings, equipment and vehicles in
the proprietary fund types is computed using the straight-line
method.
Interest is capitalized on proprietary fund assets acquired with
tax-exempt debt. The amount of interest to be capitalized is
calculated by offsetting interest expense incurred from the date
of the borrowing until completion of the project with interest
earned on invested proceeds over the same period.
J. ComDensated Absences
Vested or accumulated vacation leave that is expected to be
liquidated with expendable available financial resources is
reported as an expenditure and a fund liability of the governmental
fund that will pay it. Amounts of vested or accumulated vacation
leave that are not expected to be liquidated with expendable
available financial resources are reported in the general long-term
debt account group. No expenditure is reported for these amounts.
Vested or accumulated vacation leave of proprietary funds is
recorded as an expense and liability of those funds as the benefits
accrue to employees. In accordance with the provisions of
Statement of Financial Accounting standards No. 43, Accounting for
Compensated Absences, no liability is recorded for nonvesting
accumulating rights to receive sick pay benefits.
43
CITY OF SCHERTZ, TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 1993
Note 1. Summary of significant Accounting Policies (continued)
K. Short-term Obliqation
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.
L. Lonq-term Obliqation
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 Equitv
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.
44
CITY OF SCHERTZ, TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 1993
Note 1. Summary of Significant Accounting POlicies (continued)
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 inter fund
transfers are reported as operating transfers.
P. Cash Flows Statement
For purposes of the statement of cash flows, the City considers all
highly liquid investments with an original maturity of
approximately ninety days or less to be cash equivalents.
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 financial position in conformity with generally accepted
accounting principles. Neither are such data comparable to a
consolidation. Interfund eliminations have not been made in the
aggregation of this data.
R. ComDarative Data
Comparative total data for the prior year have been presented in
the accompanying financial statements in order to provide an
understanding of changes in the government's financial position
and operations.
S. Reclassification
Certain 1992 amounts have been reclassified to conform to 1993
presentations.
45
CITY OF SCHERTZ, TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 1993
Note 2. Leqal Compliance - Budqets
On or before July each year, all agencies of the Ci ty submit
request for appropriation to the City Manager so that a
budget may be prepared. The budget is prepared by fund,
department, function and activity, and includes information
on the past year, current year estimates and requested
appropriations for the next fiscal year.
Before September 30, the proposed budget is presented to the
City Council for review, modification and approval. By state
statute budgeted expenditures may not exceed budgeted revenues.
Expenditures may not legally exceed budgeted appropriations
at the fund level.
Note 3. Deposits
At year end, the carrying amount of the City's deposits, including
investments, was $3,081,400 and the bank balance was $3,138,121.
Of the bank balance, $300,000 was covered by federal depository
insurance and $2,838,121 was collateralized with securities held by
the pledging financial institution's trust department or agent in
the City's name. State statute authorizes the City to invest in
obligations of the U. S. Treasury and certificates of deposit. The
City's investments are certificates of deposit. Certificates of
deposit must and are collateralized by u.S. Government
securities.
46
CITY OF SCHERTZ, TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 1993
Note 4. Receivables
Receivables at September 30, 1993 consist of the following:
Debt Capital
General Service proiects Enterorise Total
Receivables:
Taxes $ 71,324 $ 14,552 $ $ $ 85,876
Account 13,624 376,789 390,413
Interest 3.013 3.013
Gross Rec 84,948 14,552 3,013 376,789 479,302
Less:
allowance for
uncollectible (3.566) (728 ) (96.295) (100.589)
Net total
receivables $ 81. 382 $ 13.824 $ 3.013 $280.494 $378,713
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 1st on property values
assessed as of January 1st. Property taxes are payable on or
before January 31 following the levy date without penalty or
interest. Unpaid property taxes attach as an enforceable lien on
property as of February 1 with penalty and interest. On July 1,
unpaid taxes are forwarded for collection and are subject to
additional penalties for collection expenses.
47
CITY OF SCHERTZ, TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 1993
Note 5. General Fixed Assets
The following is a summary of changes in general fixed assets.
Balances Balances
at at
10/01/92 Additions Deductions 9/30/93
Land $ 326,001 $ 61,849 $ $ 387,850
Buildings 1,013,503 100,787 1,114,290
Improvements
other than Bldgs 6,774,319 58,429 (10,000) 6,822,748
Vehicles 594,926 66,922 37,092 698,940
Equipment 788,879 95,648 (5,416) 879,111
Construction in
progress 19.993 (19.993)
$ 9.517.621 $ 383.635 $ 1. 683 $9.902.939
The following is a summary of the property plant, and equipment
of the Proprietary Funds at September 30, 1993.
Enterprise
Water/Sewer SAFES
Buildings
Improvements other than
buildings
Machinery and equipment
Const in Progress
$ 195,724
8,502,236
485,966
14.563
9,198,489
Accumulated
depreciation
(4,163.011)
5,035,478
160.521
$5.195.999
Land
Internal
Service
$ 26,656
$ 58,804
Total
$ 281,184
8,502,236
839,264
14.563
9,637,247
(4.437.532)
5,199,715
160.521
$5.360.236
In the proprietary and internal service funds, the following
useful lives are used to compute depreciation:
Buildings
Sewer & Water Lines
Equipment
331,833 21,465
358,489 80,269
(256.072) (18.449)
102,417 61,820
$102.417 $ 61. 820
30 years
50 years
5-10 years
48
CITY OF SCHERTZ, TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 1993
Note 6. Long-Term Debt
A. General Long-Term Debt
The following is a summary of changes in general long term debt for the year
ended September 30, 1993:
Original
Amount
Interest
Rate
Balance
Outstand-
ing
October 1,
1992
During
Year
Issued
Retired
Balance
Outstand-
ing
October 1,
1993
--------------------------------------------------------------------
G. o. Bonds:
1962 Series $301,000 3.63% $108,000 $ ($11,000) $97,000
1972 Series 150,000 3.63% 36,000 (11,000) 25,000
1975 Series 175,000 6.2 -7.0 % 160,000 (10,000) 150,000
1987 Series 445,000 6.2 -8.3 % 385,000 (25,000) 360,000
1992 Series 620,000 5.2 -7.2 % 620,000 620,000
---------------------------------------------
689,000
620,000
(57,000) 1,252,000
Certificates of
Obligation:
1990 Series 850,000
7 - 9.0 %
815,000
(35,000)
780,000
Public Property
Finance Contractual
Obligation:
1991 Series 125,000
7.25%
100,000
(30,000)
70,000
Total G.O., c.o.
and Contractual Obligation
$1,604,000
$620,000 ($122,000)$2,102,000
=============================================
49
CITY OF SCHERTZ, TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 1993
Note 6. Long-Term Debt
A. General Long-Term Debt (Continued)
Balance
Outstand-
ing
October 1,
1992
Balance
Outstand-
ing
October 1,
Additions Deductions 1993
---------------------------------------------
Compensated Absences Payable
$69,586
$77,632 ($69,586)
$77,632
---------------------------------------------
B. Proprietary Long-Term Debt
The following is a summary of changes in proprietary long term debt for the
year ended September 30, 1993:
Original
Amount
Balance
Outstand-
ing
Interest October 1,
Rate 1992
Issued
Balance
Outstand-
ing
October 1,
Retired 1993
--------------------------------------------------------------------
Revenue Bonds:
1968 Series $579,000 4.0 -5.75% $110,000 $ ($35,000) $75,000
1973 Series 165,000 5.75-6.10% 165,000 165,000
1975 Series 325,000 7.0 -7.75% 235,000 (10,000) 225,000
1981 Series 475,000 9.0 -10.0% 285,000 (30,000) 255,000
1988 Series 1,020,000 6.3 -8.30% 945,000 (15,000) 930,000
---------------------------------------------
1,740,000
(90,000) 1,650,000
Certificates of
Obligation:
1981 Series
1983 Series
1992 Series
150,000
1,250,000
200,000
9.3-10.%
8.2-10.%
85,000
925,000
(10,000)
(55,000)
75,000
870,000
200,000
200,000
1,010,000
200,000
(65,000) 1,145,000
Public Facility
Loan (HUD): 142,000
5%
96,000
(4,000)
92,000
Note Payble
273,000
7.6%
273,000
(37,213)
235,787
50
CITY OF SCHERTZ, TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 1993
Note 6. Long-Term Debt
B. Proprietary Long-Term Debt (Continued)
The annual requirements to amortize all debt outstanding as of
September 30, 1993 including interest payments are as follows:
(HUD)
Public
Revenue Certificates Facility Contractual
Bonds of Oblig Loan Oblig
General
Obligation
Note
Payable
Year ended
Sept 30,
-------------------------------------------------------------------------------
1994 $155,493 $217,106 $275,498 $8,400 $38,806 $37,212
1995 159,139 215,028 274,833 8,200 36,268 37,212
1996 160,314 207,588 278,136 8,000 37,212
1997 154,435 204,938 284,743 7,800 37,212
1998 154,298 196,833 290,217 7,600 37,212
Thereafter 1,087,872 1,566,773 1,464,502 102,600 148,848
$1,871,551 $2,608,266
$2,867,929 $142,600
$75,074 $334,908
===========================_=__==___z____=========================
Principal
Interest
$1,252,000 $1,650,000
619,551 958,266
$1,925,000
942,929
$92,000
50,600
$70,000
5,074
235,787
99,121
$1,871,551 $2,608,266
$2,867,929 $142,600
$75,074 $334,908
==================================================================
51
CITY OF SCHERTZ, TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 1993
Note 6. Long Term-Debt (continued)
Bonded debt of the City consists of various series of General
Obligation Bonds, Revenue Bonds, Certificates of Obligation,
Public Facility Loan (H.U.D.), Public Property Finance
Contractual Obligations 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 City's
combined Water and Sewer systems after payments of first lien
revenue bonds. The Public Loan is payable from gross revenue
derived from operations of the Water and Sewer Systems and has
equal status with first lien revenue bonds. Public Property
Finance Contractual Obligations are payable from a levy of ad
valorem taxes upon all taxable property within the City. 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.
52
CITY OF SCHERTZ, TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 1993
Note 7. Interfund Assets/Liabilities
The following is a summary of amounts due from and due to other
funds as of September 30, 1993:
Due From Due To
General Fund:
Capital Projects $44,728 $
Enterprise Funds 6,141
Internal Service 192
Library 115
Special Revenue:
General Fund 115
Debt Service:
General Fund 17,386
Capital Proiects:
General Fund 44,728
Enterprise 24,853
Enterprise:
General Fund 6,141
Debt Service 17,386
Capital Projects 24,853
Internal Service:
General Fund 192
Total All Funds $ 93.415 $ 93.415
53
CITY OF SCHERTZ, TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 1993
Note 8. Segment Information - Enterprise Funds
The City has two enterprise operations which provide water/sewer
and emergency ambulance services. Segment information for the
twelve month period ended September 30, 1993, is as follows:
Water/Sewer SAFES Total
Operating Revenues $1,617,768 $ 411,686 $2,029,454
Operating Expenses,
Exclusive of Depreciation 1,387,165 360,429 1,747,594
Depreciation 389,875 22,093 411,968
Operating Income (Loss) (159,272) 29,164 (130,108)
Other Income (Expenses) (218,755) 2,188 (216,567)
Operating transfers - out (227,341) (227,341)
Net Income (loss) S (605,368) S 31.352 S (574,016)
Total Assets $6,295,844 $278,972 $6,574,816
Total Equity 2,924,791 271,231 3,196,022
Working capital 265,650 168,814 434,464
Additions To Fixed Assets 316,283 13,339 329,622
Outstanding Long-Term Debt 2,974,636 2,974,636
54
CITY OF SCHERTZ, TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 1993
Note 9. contributed capital
During the year, contributed capital increased by the following
amounts:
Source
Water
& Sewer
Fund
SAFES
Fund
Internal
Service
Fund
Total
Government -
General Fund-Fixed Assets
General Fund-Bond Payment
Capital Projects Fund
$ 27,459
26,690
14,563
$9,604
$
685
$37,748
26,690
14.563
Total additions
68,712
9,604
685 79,001
Contributed Capital,
October 1
3.264.825
215.350
62.892 3.543.067
Contributed Capital,
September 30
$3.333.537
$224.954
$63,577 $3.622.068
Note 10. Operatinq Transfers
Operating transfers are comprised as follows:
In
out
$(184,792)
General fund
$
Debt service fund
184,792
Capital projects Fund
200,000
Internal Service Fund
27,341
Enterprise
Water & sewer
$412.133
(227.341)
$(412.133)
55
CITY OF SCHERTZ, TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 1993
Note 11. Commitments to continqencies
During the year the Schertz Fire Department Volunteers renewed a
previous outstanding note with a balance of $3,884. The original
proceeds of this note were used to purchase a fire truck. The
vehicle is pledged as collateral. The volunteers subsequently
donated the vehicle to the City. The City has guaranteed payment
of this note if the fire department volunteers cannot generate
sufficient funds to honor the note when it becomes due in August
1994.
Note 12. Pension Plan
Description:
The City provides pension benefits for all of its full-time
employees through a nontraditional, joint contributory, defined
contribution plan in the state-wide Texas Municipal Retirement
System (TMRS), one of over 613 administered by TMRS, an agent
multiple-employer public employee retirement system. It is the
opinion of the TMRS management that the plans in TMRS are
substantially defined contribution plans, but they have elected to
provide additional voluntary disclosure to help foster a better
understanding of some of the nontraditional characteristics of the
plan.
Benefits depend upon the sum of the employee's contributions to the
plan, with interest, and the City-financed monetary credits, with
interest. At the date the plan began, the City granted monetary
credits for service rendered before the plan began of a theoretical
amount equal to two times what would have been contributed by the
employee, with interest, prior to establishment of the plan.
Monetary credits for service since the plan began are a percent
(100%),150%, or 200%) of the employee's accumulated contributions.
In addition, the City can grant as often as annually another type
of monetary credit referred to as an updated service credit which
is a theoretical amount which, when added to the employee's
accumulated contributions and the monetary credits for service
since the plan began, would be the total monetary credits and
employee contribution accumulated with interest if the current
employee contribution rate and city matching percent had always
been in existence and if the employee's salary had always been the
average of his salary in the last three years that are one year
56
CITY OF SCHERTZ, TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 1993
Note 12. Pension Plan (continued)
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 60 and above with 10 or more years of
service or with 25 years of service regardless of age. The plan
also provides death and disability benefits. A member is vested
after 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 employees 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
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 25-year period. Currently, the unfunded actuarial liability is
being amortized over the 25-year period which began February, 1993.
The unit credit actuarial cost method is used for determine the
City contribution rate. Contributions are made monthly by both the
employees and the Ci ty . Since the City needs to know its
contribution rate in advance to budget for it, there is a one-year
lag between the actuarial valuation that is the basis for the rate
and the calendar year when the rate goes into effect.
57
CITY OF SCHERTZ, TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 1993
Note 12. Pension Plan (continued)
The City's total payroll in fiscal year 1993 was $1,672,964 and the
City's contributions were based on a payroll of $1,033,051. Both
the city and the covered employees made the required contributions,
amounting to $51,354, (4.33% for the months in calendar year 1993,
2.45% normal cost plus 1.88% to amortize the unfunded actuarial
liability) for the City and $44,373 (5%) for the employees. There
were no related-party transactions.
Fundinq Status and Proqress
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 plan.
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, 1992.
Because of the money-purchase nature of the plan, the interest rate
assumption, currently 8.5% per year, does not have as much impact
on the results as it does for a defined benefit plan. Market value
of assets is not determined for each City's plan, but the market
value of assets for TMRS as a whole was 112.3% of book
value as of December 31, 1992.
58
CITY OF SCHERTZ, TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 1993
Note 12. Pension Plan (continued)
Pension Benefit Obliaation
Because the City joined the TMRS plan during 1993 it was not part
of the annual actuarial valuation as of December 31, 1992, there
was no pension benefit obligation as of that date.
Note 13. Subsequent Event
In fiscal year 1993-94, the City increased water and sewer rates.
59
COMBINING, INDIVIDUAL FUND AND
ACCOUNT GROUP STATEMENTS AND SCHEDULES
SUPPLEMENTAL STATEMENTS
60
This page intentionally left blank.
61
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.
62
City of Schertz, Texas
General FI.I'ld
Comparative Balance Sheets
september 30, 1993 and 1992
Assets
Cash and cash equivalents
Investments
Accounts receivable
Deliquent taxes receivable
(net of allowances)
Due from other funds
Inventory of supplies, at cost
Other receivables
Total assets
Liabilities and fl.l'ld balances
Liabi l ities:
Vouchers payable
Notes Payable
Deferred Revenue
Due to other fl.l'lds
Total liabilities
Fund balances:
Reserved for forfeited property
Reserved for inventory of supplies
Unreserved:
Designated for economic development
Designated for equipment replacement
Designated for self insurance
Undesignated
Total fl.l'ld balances
Total liabilities and fl.l'ld balances
63
1993
1992
$54,992
482,306
13,624
$148,533
147,100
8,234
67.758
51.176
18.605
33
66,838
143,046
12,855
33
S688,494
$526,639
==-=a=-_..=..=
a=====:=::===
$39,691 $29,417
35,963
67,758 66,838
794
------------ ------------
143,412 97,049
------------ ------------
3,159
18,605 12,855
18,821 21,324
15.144
45,000 45,000
447,512 347,252
-----..------ ------------
545,082 429,590
------------ ------...-----
S688,494 $526,639
============ ------------
------------
City of Schertz, Texas
General Fund
Comparative Schedules of Revenue, EXpenditures and
Changes in Fund Balances - Budget and Actual
(GAAP Basis)
For the Year Ended September 30, 1993
1993
-------------------------------------
Budget
Actual
Variance
Favorable
(Unfavorable)
-------------------------------------------------
1992
Revenues:
Taxes
Licenses and permits
Charges for services
Fines and forfeits
Other sources
$1,871,962
104,750
333,470
210,400
109,228
$1,895,333
173,310
327,434
196,200
104,023
$23,371
68,560
(6,036)
(14,200)
(5,205)
$1,811,941
53,316
326,184
221,856
106,937
Total revenues
-------------------------------------------------
2,629,810 2,696,300
66,490 2,520,234
-------------------------------------------------
Expenditures:
Current:
General government
Public safety
Streets and parks
Health
Recreation
Economic development
Capital outlay
738,522
948,871
405,891
79 ,097
149,451
40,604
113,012
741,305
924,222
373,213
75,441
135,546
37,426
108,863
(2,783)
24,649
32,678
3,656
13,905
3,178
4,149
689,082
843,582
352,093
66,646
117,164
36,728
49,502
Total expenditures
-------------------------------------------------
2,475,448 2,396,016
79,432 2,154,797
Excess of revenues over (under)
expenditures
154,362
-------------------------------------------------
300,284
145,922
-------------------------------------------------
365,437
Other financing sources (uses):
Operating transfers - (out)
Total other financing sources (uses)
(184,792) (184,792)
(180,085)
-------------------------------------------------
(184,792) (184,792)
(180,085)
-------------------------------------------------
Excess of revenues (deficiency) and other
financing sources over (under)
expenditures and other financing uses
(30,430)
Fund balances, October 1,
429,590
-------------------------------------------------
$429,590
Fund balances, September 30,
$399,160
-------------------------------------------------
-------------------------------------------------
64
115,492
429,590
$545,082
145,922
$145,922
185,352
244,238
Revenues:
Taxes:
Ad valorem
Tax penalty
City sales tax
Utility franchise
Other
Total taxes
Licenses and penni ts
Charges for services:
Utility administration
Swinming pool
Animal shelter
Building rental
Library and fire
Other
Total charges for
services
Fines and forfeitures
Other sources:
ReinbJrsements
Substance Abuse
Retirement reversions
Cibolo Creek Ml.nCipal
Authori ty
Interest
Emerg Mgmnt Coordinator
Sale of assets
Miscellaneous
Total other sources
TotaL revenues
City of Schertz, Texas
General Fund
Schedule of Revenues Compared to Budget
For the Year Ended September 30. 1993
Budget
1993
Variance
Favorable 1992
Actual (Unfavorable) Actual
51,118,09451,100,837
13,000 10.519
525,000 563,677
213,118 217,103
2,750 3.197
104,750
1,871,962 1.895,333
173,310
210,000
30,375
3,900
7,600
66,295
15,300
333,470
210.400
198,333
29,156
3,036
6.782
67,245
22,882
327,434
196,200
(517,257)51,034,560
(2,481) 13,598
38,677 554,372
3,985 207,729
447 1,682
23.371 1,811,941
68,560
53,316
(11,667)
(1,219)
(864)
(818)
950
7,582
207,070
28,351
2,071
6,603
65,586
16,503
(6,036) 326,184
(14.200) 221,856
15,000 11 .002 (3,998) 18,859
21,000 20,480 (520) 18,728
14,699 14.699 10,865
6,200 5,694 (506) 5,498
6,500 8,853 2,353 5,873
12,000 11,142 (858) 12,045
5,000 2,778 (2.222) 2,994
28,829 29,375 546 32,075
---------------------------------------------.
109,228
52,629,810 52.696.300
104,023
(5,205) 106,937
==-=============================-=============
166,490 52,520,234
65
Current:
General government:
Ci ty counci l
City manager
Tax
Planning and zoning
Legal
Municipal court
Municipal building
General administration
Other - unclassified
Total general government
Public safety:
Police department
Fire department
Inspection
Total public safety
Streets and parks:
Streets
Parks
Total streets and parks
Health:
Animal control
Recreation:
Swirrming pool
Library
Total recreation
Economic development
Capital outlay
Total expenditures
City of Schertz, Texas
General Fund
Schedule of Expendi tures CQq)8red to Budget
(GAAP Basis)
For the Year Ended September 30, 1993
1993
------------------------------------
Budget
Variance
Favorable 1992
Actual (Unfavorable) Actual
-----------------------------------------------
$17,800
143,017
81,015
86,458
55,000
51,345
108,270
99,449
96,168
$14,543
138,735
89,213
81,879
74,384
53,239
100,146
96,668
92,498
$3,257
4,282
(1,894)
4,579
(19,384)
(1,894)
8,124
2,781
3,670
$14,979
127,014
65,786
81,316
47,393
43,997
98,353
70,270
139,974
738,522
-----------------------------------------------
741,305
(2,783) 689,082
-----------------------------------------------
675,275
221,268
52,328
655,303
215,640
53,279
19,972
5,628
(951)
600,637
190,164
52,781
948,871
-----------------------------------------------
843,582
924,222
24,649
-----------------------------------------------
294,634
111,257
280,292
92,921
14,342
18,336
266,992
85,101
405,891
-----------------------------------------------
352,093
373,213
32,678
79 , 097
-----------------------------------------------
75,441
3,656
-----------------------------------------------
66,646
65,097
84,354
53,564
81,982
11,533
2,372
46,487
70,6n
149,451
---------------------------------------~----~~-
117,164
135,546
13,905
40,604
~----------------------------------------------
36,n8
37,426
3,178
----------------------~------------------------
113,012
108,863
4,149
49,502
~------------------------~---------------------
$2,475,448 $2,396,016
$79,432 $2,154,797
===============================================
66
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67
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.
68
City of Schertz, Texas
Debt Service Fund
Comparative Balance Sheet
September 30, 1993 and 1992
1993 1992
------------ ------------
Assets
Cash and cash equivalents 561,351 $1,385
Del iquent taxes receivable
(net of allowances) 13,824 13,764
Due from other funds 128,806
------------ ------------
Total assets $75,175 $143,955
============ ------------
------------
Liabilities and fund balances
L iabi l ities:
Due to general fund
Deferred revenue:
Ad valorem taxes
$17,386
$78,201
13,824
13,764
Total libilities
31,210
91,965
Fund balances:
Reserved for debt service
43,965
51,990
Total fund balances
43,965
51 ,990
Total liabilities and fund balances
$75,175
$143,955
------------
------------
------------
------------
69
City of Schertz, Texas
Debt Service Fund
Comparative Statements of Revenue, Expenditures and Changes in Fund Balances _
Budget and Actual
For the Year Ended September 30, 1993
1993
-----------------------------------
Budget
Actual
Variance
Favorable
(Unfavorable) 1992
----------------------------------------------
Revenues:
Interest income
$
$3,502
$3,502
$2, 145
----------------------------------------------
Total revenues
3,502
3,502
2,145
----------------------------------------------
Expenditures:
Debt service:
Bond principal
Bond interest
Fiscal agent fees
101,660
90,123
4,536
101,660
90,123
4,536
116,000
64,413
3,158
----------------------------------------------
Total expenditures
196,319
196,319
183,571
----------------------------------------------
Excess of revenues over (under)
expenditures
(196,319) (192,817)
3,502 (181,426)
----------------------------------------------
Other financing sources (uses):
Operating transfers in
184,792
184,792
264,175
----------------------------------------------
Total other financing sources (uses)
184,792
184,792
264,175
----------------------------------------------
Excess of revenues (deficiency) and other
financing sources over (under)
expenditures and other financing uses
(11,527)
(8,025)
3,502
82,749
Fund balances, October 1,
51,990
51,990
(30,759)
----------------------------------------------
Fund balances, September 30,
540,463
543,965
$3,502
$51,990
----------------------------------------------
----------------------------------------------
70
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71
CAPITAL PROJECTS FUND
The Capital Projects Fund accounts for financial resources to be used
for the acquisition or construction of major capital facilities (other
than those financed by proprietary fund types.)
72
Assets
Cash and cash equivalents
Investments
Accrued interest
Due from other funds
Total assets
Liabilities and fund balances
Liabi l ities:
Vouchers payable
Oue to other funds
Fund balances:
Unreserved - undesignated
City of Schertz, Texas
Capital Projects Fund
Combining Balance Sheet
September 30, 1993
(With comparative totals for September 30, 1992)
Capital
Bond Issues Recovery
5125,898
981,264
3,013
$1,110,175
5137,324
326,948
5464,2n
Animal
Control
$13,076
1993
$276,298
1,308,212
3,013
====================================
$13,076 $1,587,523
-----------
-----------
$
69,033
Total liabilities and fund balances $1,110,175
1,041,142
$10,000
548
453,724
5464,2n
$
13,076
$10,000
69,581
1,507,942
$13,076 $1,587,523
-----------
-----------
====================================
73
Totals
1992
saa,631
6n,311
3,013
5768,955
-----------
-----------
511,n1
44,451
712,733
5768,955
-----------
-----------
City of Schertz, Texas
Capital Projects Fund
Combining Statements of Revenue, Expenditures and Changes in Fund Balance
For the Years Ended September 30, 1993
(With comparative totals for September 30, 1992)
Revenues:
Other
Capital recovery
Private grant
Interest income
Total revenues
Expenditures:
Capi tal outlay:
Capital projects
Capital recovery
Animal control
Total expenditures
Excess of revenues over (under)
expenditures
Other financing sources (uses):
Certificate of obligation proceeds
Operating transfers - in
Total other financing sources (uses)
Excess of revenues (deficiency) and other
financing sources over (under)
expenditures and other financing uses
Fund balances, October 1, 1992
Residual equity transfers from other funds
Fund balances, September 30, 1993
Capital
Bond Issues Recovery
Animal
Control
1993
Totals
------------------------------------ ----------- -----------
1992
$
25,763
$175,198 $
10,326
49,200
$175,198
49,200
36,089
S68,674
27,838
------------------------------------ ----------- -----------
96,512
25,763
185,524
49,200
260,487
------------------------------------ ----------- -----------
215,559
33,595
36,124
215,559
33,595
36,124
28,790
121,035
215,559
------------------------------------ ----------- -----------
149,825
33,595
36,124
285,278
------------------------------------ ----------- -----------
(189,796)
151,929
13,076
(24,791)
------------------------------------ ----------- -----------
(53,313)
620,000
200,000
620,000
200,000
820,000
------------------------------------ ----------- -----------
820,000
------------------------------------ ----------- -----------
630,204
410,938
151,929
301,795
13,076
795,209
712,733
(53,313)
424,188
341,858
$1,041,142
------------------------------------ ----------- -----------
-----------
-----------
5453,724
====================================
$13,076 $1,507,942
-----------
-----------
74
$712,733
This page intentionally left blank.
75
PROPRIETARY FUND TYPE
ENTERPRISE FUNDS
Enterprise Funds are established to account for operations which are
intended to be self-supporting through user charges. The City operates
the Water/Sewer System and the Schertz Area Facility for Emergency
Services (SAFES) on this basis.
76
City of Schertz, Texas
Enterprise Flrd
Cori>ining Balance Sheet
September 30, 1993
(With comparative totals for September 30, 1992)
Totals
Water and
Sewer System
SAFES
1993
1992
Assets
Current assets:
Cash and cash equivalents
Investments
Accounts receivable (net)
Due from other funds
Inventory of supplies, at cost
Total current assets
$17,905 544,180 562,085 S98,552
66,990 66,990 521,348
239,894 40,600 280,494 246,704
42,239 42,239 85,910
57,284 24,785 82,069 71,522
---------------------------- ----------- -----------
357,322 176,555 533,8n 1,024,036
---------------------------- ----------- -----------
Restricted assets:
Cash and cash equivalents
Investments
Total restricted assets
29,021 29,021
712,691 712,691 657,169
---------------------------- ----------- -----------
741,712 741 ,712 657,169
---------------------------- ----------- -----------
160,521 160,521 160,521
195,n4 26,656 222,380 222,380
8,502,236 8,502,236 8,204,098
485,966 331,833 817,799 781,323
(4,163,011> (256,072) (4,419,083) (4,036,449)
14,563 14,563
Fixed assets:
Land and ilJ1)rovements
Bui ldings
IlJ1)rovements other than buildings
Machinery and equipment
Accumulated depreciation
Construction in progress
Other assets:
Organizational costs
Accumulated amortization
1,900
(1,089)
1,900
(1,089)
1,900
(1,041 )
Total fixed assets
5,196,810
102,417
5,299,227
5,332,732
Total assets
$6,295 , 844
$278,9n $6,574,816 $7,013,937
=.===-====z=...=-....======. .....====== ===========
77
City of Schertz, Texas
Enterprise Fund
Combining Balance Sheet
September 30, 1993
(With comparative totals for September 30, 1992)
Liabilities and equity
Current liabilities:
Vouchers payable
Note payable
Due to other funds
Accrued vacation and sick leave
Total current liabilities
Current liabilities payable from restricted assets:
Customer deposits
Revenue bonds
Certificates of obligation
Public facility loan
Accrued interest
Total current liabilities payable from restricted assets
Noncurrent liabilities:
Revenue bonds payable (less current maturities)
Certificate of obligation payable (less current maturities)
Public facility loan
Note Payable (less current maturities)
Total noncurrent liabilities
Total liabilities
Equity:
Contributed capital
Retained earnings:
Reserved for revenue bond retirement
Reserved for equipment replacement and capital improvements
Unreserved
Total retained earnings
Total equity
Total liabilities and equity
Water and
Sewer System
SAFES
Totals
1993
1992
---------------------------- ----------- -----------
$51,280 $117 $51,397 $59,141
19,151 19,151
2,892 3,249 6,141 232,484
18,349 4,375 22,n4 22,589
---------------------------- ----------- -------....--
91,672 7,741 99,413 314,214
---------------------------- -..--------- -----------
128,170
95,000
30,000
4,000
47,575
128,170
95,000
30,000
4,000
47,575
111,800
90,000
65,000
3,000
50,201
304,745
---------------------------- ----------- -----------
320,001
304,745
---------------------------- ----------- ----------..
1,555,000
1,115,000
88,000
216,636
2,974,636
----------------------------
----------------------------
$3,371,053
$7,741
----------------------------
$3,333,537
341,141
123,447
(873,334)
1,555,000 1,650,000
1,115,000 945,000
88,000 93,000
216,636
-----..----- ..----.......---
2,974,636 2,688,000
----------- -....-----..--
3,378,794 $3,322,215
----------- ---------..-
$224,954 $3,558,491 $3,480,175
46,2n
(408,746)
----------------------------
46,2n
----------------------------
2,924,791
271,231
----------------------------
56,295,844
$278,972
============================
78
341,141 331,390
123,447 84,517
(827,057> (204,360)
--..-------- -----------
(362,469) 211,547
----------- ------...----
3,196,022 3,691,n2
---------...- -----------
56,574,816 $7,013,937
----------- -----------
----------- -----------
City of Schertz, Texas
Enterprise FU'ld
Combining Statement of Revenues, Expenses and Changes in Retained Earnings
For the Year Ended September 30, 1993
(With Comparative Totals for September 30, 1992)
Operating revenues:
Fees charged to users
Total revenues
Operating expenses before depreciation:
Personal services
Sewage treatment
General and administrative
Contractual services
Supplies/maintenance
Bad debts
Total operating expenses before depreciation
Operating income before depreciation
Depreciation
Operating income (loss)
Nonoperating revenues (expenses):
Interest income
Interest expenses
Amortization
Loss on trade or sale of assets
Reintlursements
Other
Total nonoperating revenues (expenses)
Net income (loss) before operating transfers
Operating transfers out
Net income (loss)
Retained earnings, October 1, 1992
Residual equity transfers
Retained earnings, September 30, 1993
Water and
Sewer System
$1,617,768
1,617,768
306,154
414,719
198,333
199,835
268,124
1,387,165
230,603
389,875
(159,2n)
31,082
(298,382)
(48)
48,568
25
(218,755)
(378,027>
(227,341)
(605,368)
196,622
($408,746)
SAFES
$411,686
411,686
186,422
5,800
54,366
60 , 466
53,375
360,429
51,257
22,093
29,164
2,104
84
2,188
31,352
31,352
14,925
S46,2n
Totals
1993
$2,029,454
2,029,454
492,576
414,719
204,133
254,201
328,590
53,375
1,747,594
281,860
411,968
(130,108)
33, 186
(298,382)
(48)
48,568
109
(216,567)
(346,675)
(227,341)
(574,016)
211,547
============================== ================
($362,469)
79
1992
$1,833,283
1,833,283
469,942
405,282
243,386
174,842
220,480
41,374
1,555,306
2n,9n
411,098
(133,121 )
58,188
(296,210)
(48)
(12,591)
16,847
(233,814)
(366,935)
(78,561)
(445,496)
1,063,217
(406,174)
$211,547
----------------
----------------
City of Schertz, Texas
Enterprise Fund
Combining Statement of Cash Flows - All Proprietary Fund Types
For The Year Ended September 30, 1993
(With Comparative Totals for September 30, 1992)
Cash flows from operating activities:
Cash received from customers
Cash payments to suppliers for goods and services
Cash payments to employees for services
Other
Net cash provided by operating activities
Cash flows from non-capital financing activities:
Residual equity transfer
Operating transfers out to other funds
Net cash provided by non-capital financing activities
Cash flows from capital and related financing activities:
Acquisition and construction of capital assets
Principal payments on long-term debt
Proceeds from issuance of long-term debt
Interest paid on long-term debt
Capital contributed for capital assets
Net cash used for capital and related financing activities
Cash flows from investing activities:
Interest on investments
Net increase (decrease) in cash
Cash and cash equivalents, October 1, 1992
Cash and cash equivalents, September 30, 1993
Comprised of:
Current assets
Restricted assets
Water and
Sewer System
$1,589,862
(1,251,958)
(303,857>
50,174
84,221
(227,341)
(227,341)
(316,283)
(169,523)
473,000
(298,382)
(311,188)
31,082
(423,226)
1,182,843
$759,617
SAFES
$362,243
(146,674)
(188,584)
1,194
28, 179
(13,339)
(13,339)
2,104
16,944
94,226
-------------------------
-------------------------
$111,170
$17,905
741,712
$759,617
$111,170
-------------------------
-------------------------
$111,170
80
$129,075
741,712
$619,900
657,169
$870,787 $1,277,069
----------- -----------
----------- -----------
(continued)
City of Schertz, Texas
Combining Statement of Cash Flows - All Proprietary Fund Types
Enterprise Fund
For The Year Ended September 30, 1993
(With Comparative Totals for September 30, 1992)
Reconciliation of operating income (loss) to net cash
provided by (used for) operating activities:
Operating income (loss)
Adjustments to reconcile operating income (loss) to
net cash provided by operating activites
by operating activities:
Depreciation/amortization
Provision for uncollectible accounts
Loss on sale of assets
Other
Change in assets and liabilities:
Decrease (increase) in accounts receivable
Increase in inventory
Increase (decrease)in vouchers payable
Increase (decrease) in due to other funds
Decrease (increase) in due from other funds
Increase (decrease) in accrued vacation
Decrease in interest receivable
Decrease in accrued interest payable
Decrease (increase) in customers deposits
Net cash provided by operating activities
Supplemental disclosures:
Noncash capital and related financing transactions
Equipment from other funds
Acquisition and construction of capital asset
Cost of facility
Note payable issued
Totals
Water and
Sewer System SAFES
1993 1992
($159,272)
$29,164
($130,108) ($133,121)
389,923 22,093 412,016 411,146
53,375 53,375 41 ,374
(121)
50,174 1,194 51,368 18,807
(33,076) (54,089) (87,165) 19,912
(8,942) (1,605) (10,547> (11,564)
(6,662) (992) (7,654) 23 , 630
(190,508) (19,On) (209,585) 108,487
26,543 280 26,823 (79,On)
2,297 (2,164) 133 10,089
151
(2,626) (2,626) (2,728)
16,370 16,370 (2,444)
------------------------ ----------- -----------
$84,221 $28,179 $112,400. $404,541
======================== ----------- -----------
----------- -----------
$27,459
$34,363
$
56,904
273,000
(273,000)
273,000
(273,000)
81
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82
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83
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.
84
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85
City of Schertz, Texas
Schedule of General Fixed Assets - By Source
Septenber 30, 1993 and 1992
1993 1992
-----...----- ---...---...----
General fixed assets:
Land $387,850 $326,001
Buildings 1,114,290 1,013,503
In.,rovements other than buildings 6,822,748 6,n4,319
Vehicles 698,940 594,926
Equipment 879, 111 788,879
Construction in progress 19,993
----------- ------------
Total $9,902,939 $9,517,621
----------- ------------
----------- ------------
Investment in general fixed assets by source:
General fund
$1,914,517
$1,751,212
Capital projects:
General obligation bonds
Total
491,364 491,364
182,686 61,906
317,005 317,005
113,614 113,614
36,124
6,847,629 6,782,520
----------- ------------
$9,902,939 $9,517,621
----------- ------------
----------- ------------
Cerificates of obligation
Time warrants
Contractual obligations
Grant
Contributed
86
City of Schertz, Texas
Schedule of General Fixed Assets - By Function and Activity
For the Year Ended September 30, 1993
Transfers
Balance Between Balance
OCtober 1, 1992 Add it i ens Departments Deductions September 30, 1993
---------------- ---------------- ---------------- ---------------- ------------------
General government $811,259 $44,311 $2,400 ($1,550) $856,420
Public safety:
Po lice 280,893 69,538 (2,502) (10,394) 337, 535
Fire 499,007 83,375 45,820 (29,788) 598,414
Inspection 22,596 1,706 (3,000) 21,302
Street and Park:
Street 6,391,233 20,346 40,573 (22,918) 6,429,234
Pool 541,036 4,104 (159) (4,175) 540,806
Parks 645,900 3,151 8,496 (217) 657,330
Health:
Animal control 44,792 158,808 2,124 (1,388) 204,336
Library 260,912 (100) (3,250) 257,562
Construction in progress 19,993 (19,993)
---------------- ---------------- ---------------- ---------------- ------------------
Total $9,517,621 $383,633 $98,358 ($96,673) $9,902,939
================ ================ ================ ================ ==================
87
Components of General Fixed Assets
a_________________________________________________________________________________________________________
I ""rovements
Other Than Construction
Land Buildings Buildings Vehicles Equipment in progress
---------.------ ---------------- ---------------- ---------------- ---------------- ----------------
$63,769 $623,236 548,310 $6,676 $114,429 $
197,785 139,750
12,000 65,000 5,670 309,366 206,378
139 15,278 5,885
83,227 400 5,962,465 145,109 238,033
530,309 10,495
182,662 195,159 193,864 17,998 67,647
23,161
106,071
47,124
6,n8
21,252
23,031
124,424
34,867
75 , 242
5387,850
51,114,290
56,822,748
5698,940
$879, 111
$
================
----------------
----------------
================
----------------
----------------
----------------
----------------
----------------
----------------
88
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89
STATISTICAL SECTION
90
City of Schertz, Texas
TABLE 1
General Governmental Expenditures By Function
Fiscal General Public streets Total (1 )
Year Government Safety And Parks Health other Expenditures
----------------------------------------------------------------------------
1984 $486,178 $310,000 $167,002 $30,885 $105,455 $1,099,520
1985 566,490 353,023 173,251 45,076 99,770 1,237,610
1986 620,680 416,578 202,929 43,929 182,739 1,466,855
1987 715,242 488,536 318,719 55,657 188,193 1,766,347
1988 807,754 523,000 283,323 47,507 216,662 1,878,246
1989 934,517 582,673 289,539 50,243 189,199 2,046,171
1990 654,009 796,823 327,797 56,150 339,241 2,174,020
1991 659,815 836,031 342,974 65,816 436,419 2,341,055
1992 689,082 843,582 352,093 66,646 393,138 2,344,541
1993 741,305 924,222 373,213 75,441 479,836 2,594,017
(1) Includes general, special revenue
and debt service funds
91
City of Schertz, Texas
TABLE 2
General Government Revenues By Source
Licenses Charges Fines
Fiscal And For And
Year Taxes Permits Services Forfeitures Other Total ( 1)
---------------------------------------------------------------------------
1984 $799,876 $76,517 $33,959 $78,149 $228,838 $1,217,339
1985 926,883 73,521 30,440 92,437 200,701 1,323,982
1986 1,068,305 117,685 30,717 121,054 173,894 1,511,655
1987 1,152,108 76,821 32,459 159,837 203,837 1,625,062
1988 1,308,600 54,627 32,391 139,008 272,230 1,806,856
1989 1,360,611 53,045 31,235 145,830 305,348 1,896,069
1990 1,540,027 42,194 72,781 217,311 305,977 2,178,290
(2) (2)
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
(1) Includes general, special revenue
and debt service funds
(2) Reclassification among these catagories performed in 1991
92
City of Schertz, Texas
TABLE 3
Property Tax Levies and Collections
Ratio of
Total
% of Tax OUtstanding Rates of
Total Current Current Collections Standing Del inquent
Fiscal Tax Tax Levy Oel inquent Total Tax To Total Delinquent Taxes to
Year Levy Collections Collected Collections Collections Tax Levy Taxes Tax Levy
---------------------------------------------------------------------------------------------------
1984 5448,860 5443,070 98.7% $10,9n 5454,047 101.1% $9,497 2.1%
1985 486,515 481,502 98.9% 2,629 484,131 99.5% 14,165 2.9%
1986 545,931 532,537 97.5" 4,193 536,730 98.3" 19,523 3.6"
1987 610,784 592,291 97.0% 7,083 599,374 100.3% 29,594 4.8%
1988 706,369 674,931 95.6% 18,548 694,017 98.25% 41,915 5.9%
1989 748,602 715,970 95.6% 14,943 730,913 97.64% 56,270 7.5%
1990 914,388 864, n3 94.6% 19,324 884,047 96.7% 86,122 9.4%
1991 1,005,598 975 ,352 97.0% 37,9n 1,013,324 101.0% 78,396 7.8%
1992 1,042,914 1,014,564 97.0% 19,995 1,034,559 99.0% 84,843 8.1%
1993 1,102,209 1,083,800 98.3% 17,037 1,100,837 99.9% 85,876 7.8%
93
city of Schertz, Texas
TABLE 4
Assessed and Estimated Actual Value of Property
Fiscal Estimated
Levy Year Actual Assessment Assessed Tax Tax
Year Ended Values Percentage Valuations Rate Levy
----------------------------------------------------------------------
1984 9-30-84 $111,263,473 100% $106,871,357 .42 $448,860
1985 9-30-85 122,414,101 100% 111,586,009 .436 481,515
1986 9-30-86 132,968,586 100% 125,018,837 .436 545,931
1987 9-30-87 153,457,116 100% 147,961,601 .4128 610,784
1988 9-30-88 379,674,429 100% 285,978,200 .24705 706,369
1989 9-30-89 284,253,725 100% 290,606,339 .2576 748,602
1990 9-30-90 376,676,293 100% 287,272,356 .3183 914,388
1991 9-30-91 340,903,727 100% 272,593,690 .3689 1,005,598
1992 9-30-92 269,351,284 100% 268,170,123 .3889 1,042,914
1993 9-30-93 256,861,608 100% 259,038,486 .4255 1,102,209
94
City of Schertz, Texas
TABLE 5
Property Tax Rates - Direct and
Overlapping Governments
County
City School County Road
Year** ------ ------
100% 100% 100% 100%
Assessment Assessment Assessment Assessment
Rate* Rate* Rate Rate
-------- -------- -------- --------
1984 $ .42 $ .74 $ .24 $ .04
1985 .440 .97 .2457 .04
1986 .436 1.11 .3450 .0425
1987 .4128 1.14 .3875 .04
1988 .24705 .783 .2852 .0820
1989 .2576 .8882 .1522 .0950
1990 .3183 1. 00561 .1418 .0977
1991 .3689 1. 20513 .2720 .0850
1992 .3889 1.4777 .3599 .0850
1993 .4684 1. 4499 .3036 .0950
* All rate shown are per $100 assessed valuation.
** Year shown is the fiscal year of collection. Taxes
were levied the previous calender year.
95
TABLE 6
City of Schertz, Texas
Ratio of Net General Obligation Bonded Debt
to Assessed Value and Net General Bonded Debt Per Capita
Ratio Net
Of Net General
Fiscal Bonded Debt Bonded
Year Estimated Assessed Net General To Assessed Debt Per
--------------------------------------------------------------------
9-30-84 9,600 $106,871,357 $423,009 .40% $ 44.06
9-30-85 11,400 11,586,009 345,035 .31% 30.27
9-30-86 12,500 125,213,487 324,351 .26% 25.92
9-30-87 12,500 147,961,601 757,798 .51% 60.62
9-30-88 12,580 285,978,200 758,401 .27% 60.29
9-30-89 12,580 290,606,339 755,115 .26% 60.03
9-30-90 10,681* 287,272,356 732,510 .25% 68.58
9-30-91 10,900 272,593,690 715,300 .26% 65.62
9-30-92 11,500 268,170,123 687,715 .26% 59.80
9-30-93 12,000 259,038,486 1,190,649 .46% 99.22
(1)
* Based on preliminary 1990 Census. This estimate has
been challenged by the City.
(1) Includes general bonded debt issued during current year
96
City of Schertz, Texas
Computation of Direct and Overlapping Debt
For the Year Ended September 30, 1993
Taxing Body
Net Debt
* Alamo Corom. College Dist. $81,600,000 8-31-92
Amount
As of
* Bexar County
* Comal County
* Comal Independent School
District
* Guadalupe county
* Schertz-Cibolo-Universal
City Independent
* San Antonio River Auth.
139,607,692
6,726,449
3-31-92
12-31-92
28,153,675
8-05-92
2,150,769 8-01-90
9,455,000 8-31-92
27,989,384 6-30-90
*
City of Schertz
Total Net Overlapping Debt
1,691,444 9-30-92
Total Direct and overlapping debt
(2.73\ of Assessed Value-
$663.90 Per Capita)
Percent
OVer-
Lapping
0.02\
0.02\
0.09\
0.12\
TABLE 7
Amount
Over-
Lapping
$16,320
27,922
6,054
14.75\ 317,238
33,784
51.88\ 4,905,254
0.02\ 9,473
100.00\ 1,691,444
$5,316,045
* Source of Data - Texas Municipal Reports, City of Schertz,
1992 (latest available) compiled and published by Municipal
Advisory Council of Texas.
97
$7,007,489
-----------
-----------
City of Schertz, Texas
TABLE 8
Legal Debt Margin
For the Year Ended September 30, 1993
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.
98
city of Schertz, Texas
TABLE 9
Ratio of Annual Debt Service Expenditures for
General obligation Bonded Debt to Total General Expenditures
Last Ten Fiscal Years
Ratio
Of Debt
Debt Service Service To
Fiscal ------------------------------ General
Ended Principal Interest Total Expenditures* Expenditures
----------------------------------------------------------------------
9-30-84 $20,000 $28,577 $48,577 $1,099,520 4.4%
9-30-85 21,000 27,878 48,878 1,237,610 3.9%
9-30-86 21,000 26,233 47,233 1,466,855 3.2%
9-30-87 22,000 25,169 47,169 1,766,347 2.7%
9-30-88 24,000 72,900 96,900 1,878,246 5.2%
9-30-89 39,000 54,758 93,758 2,197,023 4.3%
9-30-90 45,000 52,049 97,049 2,174,020 4.5%
9-30-91 45,000 49,067 94,067 2,341,055 4.0%
9-30-:92 46,000 46,084 92,084 2,344,541 4.0%
9-30-93 57,000 42,830 99,830 2,594,017 3.9%
* Includes General, Special Revenue, and Debt Service Funds.
99
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100
City of Schertz, Texas
TABLE 10-1
Water and Sewer Fund
Revenue Bond coverage
Fiscal
Ended
Operating
Revenue
Total
Operating
Expenses
Before
Depreciation
Operating
Income
Before
Depreciation
9-30-84 $997,997 $607,424 $390,573
9-30-85 1,172,755 815,805 356,950
9-30-86 1,309,269 849,677 459,592
9-30-87 1,339,061 888,916 450,145
9-30-88 1,502,210 1,056,619 445,591
9-30-89 1,729,271 1,045,290 683,981
9-30-90 1,557,554 1,087,074 470,480
9-30-91 1,515,854 1,139,935 375,919
9-30-92 1,487,049 1,203,574 283,475
9-30-93 1,617,768 1,387,165 230,603
101
TABLE 10-1
Debt Service Requirements Number of Customers
Principal Interest Total Coverage Water Sewer
-----------------------------------------------------------------------
$70,000 $274,977 $344,977 1. 13 : 1 2,785 2,133
75,000 224,036 299,036 1.19: 1 2,877 2,231
83,000 217,379 300,379 1. 53 : 1 3,208 2,333
105,000 271,454 376,454 1. 20: 1 3,498 2,639
113,000 262,543 375,543 1.19: 1 3,692 2,662
128,000 267,943 395,943 1. 73: 1 3,859 2,906
138,000 247,580 385,580 1. 22: 1 3,712 3,028
83,000 139,423 222,423 1. 69 : 1 3,751 3,086
80,000 134,473 214,473 1. 32: 1 3,859 3,177
90,000 128,672 218,672 1. 06: 1 4,074 3,377
102
City of Schertz, Texas
Waterworks and Sewer System Fund
Revenue Bond Requirements and Restricted Funds
For the Year Ended September 30, 1993
Series 1968:
Principal Payment, Due 9-1-94
Interest Payment, Due 3-1-94
Utility System Revenue Bonds,
Series 1973:
Principal Payment, Due 9-1-94
Interest Payment, Due 3-1-94
Utility System Revenue Bonds,
Series 1975:
Principal Payment, Due 9-1-94
Interest Payment, Due 3-1-94
Utility System Revenue Bonds,
Series 1981:
Principal Payment, Due 9-1-94
Interest Payment, Due 3-1-94
Utility System Revenue Bonds,
Series 1987:
Principal Payment, Due 9-1-94
Interest Payment, Due 3-1-94
Cash - restricted
Under Requirements
Annual
Principal/
Semi-Annual
Interest
$35,000
2,157
4,884
10,000
8,300
35,000
12,400
15,000
33,313
TABLE 10-2
Requirement
At
September 30,
Basis 1993
1/12th
1/6th
1/6th
1/6th
1/12th
1/6th
1/12th
1/6th
1/12th
1/6th
TOTAL REQUIREMENTS
103
$2,917
360
814
833
1,383
2,917
2,067
1,250
5,552
18,093
5,480
($12,613)
--------
--------
(Continued)
City of Schertz, Texas
TABLE 10-2
Waterworks and Sewer System Fund
Revenue Bond Requirements and Restricted Funds
For the Year Ended September 30, 1993
Reserve Fund Requirement
The City is required to make monthly deposits sufficient to meet the
total reserve fund requirement within 60 months of the closing date
for the 1987 issue. City monthly deposits through September 30, 1993
met these requirements.
1 1/2 Time Average Annual Principal and Interest
Requirement (Annual $186,305)
$279,458
Cash and Investments
448,164
Funds Available Over (Under) Requirement
$168,706
--------
--------
104
City of Schertz, Texas
TABLE 11
Demographic Statistics
Last Ten Fiscal Years
Level In
Per Years Of
Capita Median Formal School Unemployment
Fiscal Income Age Education Enrollment Rate in \
Year population (2) (3) (3) (4) (3 )
----------- ------- ------ --------- ----------- ------------
1984 9,600 est. $7,240 40 12 2,049 5.7\
1985 11,400 est. 40 12 2,064 5.4\
1986 12,500 est. 7,400 41 12 2,154 6.3\
1987 12,500 est. 41 12 2,306 5.7\
1988 12,580 est. 8,300 41 12 2,334 6.2\
1989 12,580 est. 8,300 41 12 3,980 7.3\
1990 10,597 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\
Source:
(1) 1990 Bureau of the Census
Department of planning, University of Texas
(2) Department of Economics, University of Texas
U.S. Department of Labor
(Information not available for odd years)
(3) Texas Employment Commission
(4) Schertz-Cibolo-Universal City Independent School District
105
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106
City of Schertz, Texas
TABLE 12
Property Value, Construction, and
Bank Deposits
Last Ten Fiscal Years
Commercial Residential
Construction Construction
----------------------- --------------------------
Number
Fiscal Number Value of Units Value
--------------------------------- --------------------------
1984 37 $6,213,816 330 $8,004,622
1985 64 2,779,063 132 7,918,922
1986 15 1,600,154 229 14,590,154
1987 16 1,056,074 132 7,834,243
1988 17 325,577 78 5,726,906
1989 2 478,000 62 5,051,217
1990 22 1,988,605 37 3,408,220
1991 11 938,564 33 2,377,438
1992 11 664,016 50 4,140,140
1993 9 235,825 245 22,537,308
107
TABLE 12
Property Value *
Total ------------------------------------------------
Bank Deposits Conunercial Residential Nontaxable
------------- ----------------------------------------------
$31,842,000 $14,285,782 $91,817,653 $10,457,515
34,089,000 15,006,912 91,817,653 10,828,092
40,357,000 15,205,126 95,683,981 10,828,092
56,924,876 15,348,150 102,787,953 10,828,092
64,197,486 53,591,069 148,425,176 10,828,092
62,102,393 64,778,035 202,135,618 4,556,627
81,995,393 50,527,552 205,228,770 498,074
62,714,417 32,198,188 177,354,060 430,425
61,074,204 30,327,586 178,353,991 5,086,170
63,487,855 31,626,493 182,817,263 5,360,890
Sources:
City Building Inspection Records
City Tax Records
S. W. T. Research Center
Schertz State Bank
Pacific Southwest
* Estimated Actual Value
108
city of Schertz, Texas
Principal Taxpayers
For the Year Ended September 30, 1993
Taxpayer
Type of
Business
1992
Assessed
Valuation
TABLE 13
Percentage
Of Total
Assessed
Valuation
White, Eric
Conunerical
---------------------------------------------------------------------
2.188\
PSPI Industries/corp
Industrial
Sycamore Partner's
Furn./Apts/
Negley Paint Co.
Industrial
Garden Ridge Pottery
Mercantile
Guadalupe Electric Co-Op
Conunerical
Southwestern Bell
Utility
CHM Parks
Conunerical
Val Verde Limited ptrs
Industrial
Paragon Cablevision
Industrial
109
$5,667,669
3,922,970
3,100,000
3,028,512
2,908,724
1,978,640
1,134,090
1,040,659
834,616
696,500
$24,312,380
--=---=====
1. 514\
1.197\
1.169\
1.123\
0.764\
0.438\
0.402\
0.322\
0.269\
9.386\
--------
--------
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110
City of schertz, Texas
Miscellaneous Statistics
For the Year Ended September 30, 1993
Date of Incorporation:
Date First Chapter Adopted:
Date Present Chapter Adopted:
Form of Government:
1993
1992
1991
1989
1988
1987
1986
1985
1984
1983
Miles of Highways, Streets and Alleys:
Streets and Highways, paved
Streets, unpaved
Alleys
Sidewalks
Miles of Sewer:
Storm
Sanitary
Building Permits:
Year
Permits Issued
1993
1992
1991
1990
1989
1988
1987
1986
1985
1984
1983
2,167
873
545
392
407
368
430
270
378
367
400
111
TABLE 14
December 1958
April 1974
Amended March 1989
Council-Manager
24.15
24.15
23.75
22.42
22.42
22.38
21. 51
13.14
12.82
10.53
88.95 miles
6.78 miles
3.44 miles
11.60 miles
1.8 miles
35.0 miles
Value
of Buildings
$25,705,848
6,702,823
7,667,699
6,652,769
6,762,584
7,752,335
9,725,569
16,349,884
10,697,985
14,218,408
5,411,680
(Continued)
city of Schertz, Texas
TABLE 14
Miscellaneous Statistics
Year Ended September 30, 1993
Fire Protection:
Number of stations
Number of employess (full and part-time)
Number of volunteers
1
17
30
Recreation:
Parks:
Playgrounds
Other recreational facilities:
Baseball fields
Softball fields
Large pavilion
Small pavilion
Picnic tables:
Uncovered
Restrooms:
Male
Female
Concessions stands
Community center
6
64
3
2
10,000 sq. ft. covered
600 sq. ft. covered
50
6
6
1
1
City Employees:
September 30, 1993
89
Elections:
Number of registered voters
Number of votes in:
Last municipal election
Percentage of registered voters voting in:
Last municipal election
5,024
470
11. 4%
Source: Municipal election records
Population:
Census population count
1992 (Estimate)
1990
1980
1970
1960
1950
1940
12,000
10,597
7,260
4,061
2,281
1,200
600
112
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113
.It