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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 - I I- I - :-- I :B :C I, - Ilr~ I:.... :5f.~ 5u - I i " C = i 11 C I . ... II ~ II II II IE :IE 'i:: ~ ; IE _ :~ !; i!! J .!! i!! is! .>o.a.gs :. ~ tn U ~= U I 3S1:i!!Ia.~ :~ =- c. =. - ;: 0_ = i C? uUG::) ~ .... .. ~ i!! 3~ ~-s _....su ~ aa!3 33il e e .- !IEU. --"'" u.u.c~ . . . . ....N...... --.M i>o (I):: .:aU S>o e- et .!c ~ . .... . . . . ............N .. o ~ i :l'>:~ _~ i: "J;; :Q -. r- :0 Bu Q: MM ! ~~ . . ... ... e · - I !.I .~ ! i!! U .as... Wi :;U~ . . . ...NN IJ . Ie -~. sf :. ; . . .... .... I.u.... J~ oas I Jiil I eCtnU . . . . ... ... ... ... -I 'E! :.. .. ! 03 3. ~ _ I c_!5ijJf ii. !i!c.5 ~e s .. f 3.~ ! g j !u I B~i=llaslL .....,:.... ........~................GN . ....c!! 00'1 e 11.1 sel= sj!ic wcwli: . . . cia ........~.... ~ ml ~;; III c Ii !e = _.~ce "ieiit B:;ii:itE: ..... ....~~....Ga e : . .. - : iii J" .....- 'E!~ ..11 " u - =t c fBIL ia: .- . .c u. I . . . . - .... .... .... .... " &I . ... - - -- .. =c;ll jellll i...a:a: i.YJi.... aSSl1 (l)u.(I)1I)2.- ...... ........~......... - II -I I -I . 2 .. . e38- .:.. 1;0. !ui .feci . . . .... .... .... - I c=- .ia Iii :.;.{ Ii ~ ~ "00 I:..w~ ~ ~ ~ ; .. ~ ~:c E iie=_2U! 'E.....oE.:a . I':': o.c:l a.......~tn- i~~~li:li:t: ....... ........N......NG 15 . . . .... .... .... .- I.: ol>>' aa EE WW CDCD EE i=i= 3. u.~ . . =~ 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 This page intentionally left blank. 17 FINANCIAL SECTION 18 This page intentionally left blank. 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 This page intentionally left blank. 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 This page intentionally left blank. 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 ---------------------------- ---------------------------- This page intentionally left blank. 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 This page intentionally left blank. 34 This page intentionally left blank. 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 This page intentionally left blank. 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 This page intentionally left blank. 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 This page intentionally left blank. 82 This page intentionally left blank. 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 This page intentionally left blank. 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 This page intentionally left blank. 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 This page intentionally left blank. 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 This page intentionally left blank. 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\ -------- -------- This page intentionally left blank. 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 This page intentionally left blank. 113 .It