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FY 2001-2002 -- Comprehensive Annual Financial ReportCITY OF COLLEGE STATION, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 PREPARED BY THE CITY OF COLLEGE STATION FISCAL SERVICES DEPARTMENT CHARLES CRYAN, DIRECTOR OF FISCAL SERVICES KATHLEEN HUBBARD, ASSISTANT DIRECTOR OF FISCAL SERVICES/ACCOUNTING MANAGER PHILLIP GUILLEN, INVESTMENT OFFICER -i- CITY OF COLLEGE STATION, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 Table of Contents Page INTRODUCTORY SECTION..................................................................................................................1 Letter of Transmittal .......................................................................................................................3 GFOA Certificate of Achievement for Excellence in Financial Reporting.............................................18 Organizational Chart .....................................................................................................................19 Principal City Officials ..................................................................................................................20 FINANCIAL SECTION ........................................................................................................................21 Independent Auditors' Report .........................................................................................................23 General Purpose Financial Statements for the Fiscal Year Ended September 30, 2002: Combined Balance Sheet - All Fund Types and Account Groups ...............................................26 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types .....................................................................................................................30 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual (Budgetary Basis) - General, Special Revenue, Debt Service and Capital Projects Funds 32 Combined Statement of Revenues, Expenses and Changes in Retained Earnings/Fund Balance - All Proprietary and Fiduciary Fund Types ............................................................36 Combined Statement of Cash Flows - All Proprietary and Fiduciary Fund Types ..........................38 Notes to General Purpose Financial Statements ......................................................................41 Supplemental Combining, Individual Fund and Account Group Statements and Schedules for the Fiscal Year ended September 30, 2002: General Fund Schedule of Revenues and Other Financing Sources - Budget and Actual (Budgetary Basis).....................................................................................................74 Schedule of Expenditures - Budget and Actual (Budgetary Basis)........................................78 CITY OF COLLEGE STATION, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 Table of Contents (Continued) - ii - Spec ial Revenue Funds Combining Balance Sheet ................................................................................................92 Combining Statement of Revenues, Expenditures and Changes in Fund Balances .................94 Community Development Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual (B udgetary Basis).....................................................................................96 Convention Center Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual (Budgetary Basis).....................................................................................97 Hotel/Motel Tax Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual (Budgetary Basis).....................................................................................98 Melrose Apartment Tax Increment Financing District Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual (Budgetary Basis).....................................................................................99 Parks Escrow Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual (Budgetary Basis)...................................................................................100 Wolf Pen Creek Tax Increment Financing District Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual (Budgetary Basis) 101 Debt Service Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual (Budgetary Basis).........................................................................................105 Capital Projects Funds Combining Balance Sheet ..............................................................................................108 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ...............110 Business Park Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual (Budgetary Basis)...................................................................................112 Drainage Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual (Budgetary Basis)...................................................................................113 CITY OF COLLEGE STATION, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 Table of Contents (Continued) - iii - General Government Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual (Budgetary Basis)...................................................................................114 Parks Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual (Budgetary Basis)...................................................................................115 Streets Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual (Budgetary Basis)...................................................................................116 Enterprise Funds Combining Balance Sheet ..............................................................................................118 Combining Statement of Revenues, Expenses and Changes in Retained Earnings ..............122 Combining Statement of Cash Flows ...............................................................................124 Electric Fund Schedule of Revenues - Budget and Actual (Budgetary Basis).....................................128 Schedule of Expenses - Budget and Actual (Budgetary Basis)....................................129 Water Fund Schedule of Revenues - Budget and Actual (Budgetary Basis).....................................130 Schedule of Expenses - Budget and Actual (Budgetary Basis)....................................131 Sewer Fund Schedule of Revenues - Budget and Actual (Budgetary Basis).....................................133 Schedule of Expenses - Budget and Actual (Budgetary Basis)....................................134 Sanitation Fund Schedule of Revenues - Budget and Actual (Budgetary Basis).....................................136 Schedule of Expenses - Budget and Actual (Budgetary Basis)....................................137 Northgate Parking Fund Schedule of Revenues and Expenses - Budget and Actual (Budgetary Basis)...............138 Enterprise Funds Schedule for Reconciliation of Revenues and Expenses (Budgetary Basis) to GAAP Basis Statement of Income ................................................................................139 Internal Service Funds Combining Balance Sheet ..............................................................................................142 Combining Statement of Revenues, Expenses and Changes in Retained Earnings (Deficits).....................................................................................144 CITY OF COLLEGE STATION, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 Table of Contents (Continued) - iv - Combining Statement of Cash Flows ...............................................................................146 Communication Services Fund Schedule of Revenues and Expenses - Budget and Actual (Budgetary Basis)...............148 Employee Benefits Fund Schedule of Revenues and Expenses - Budget and Actual (Budgetary Basis)...............149 Equipment Replacement Fund Schedule of Revenues and Expenses - Budget and Actual (Budgetary Basis)...............150 Fleet Maintenance Fund Schedule of Revenues and Expenses - Budget and Actual (Budgetary Basis)...............151 Print/Mail Services Fund Schedule of Revenues and Expenses - Budget and Actual (Budgetary Basis)...............152 Property and Casualty Fund Schedule of Revenues and Expenses - Budget and Actual (Budgetary Basis)...............153 Unemployment Fund Schedule of Revenues and Expenses - Budget and Actual (Budgetary Basis)...............154 Utility Billing Fund Schedule of Revenues and Expenses - Budget and Actual (Budgetary Basis)...............155 Workers' Compensation Fund Schedule of Revenues and Expenses - Budget and Actual (Budgetary Basis)...............156 Internal Service Funds Schedule for Reconciliation of Revenues and Expenses (Budgetary Basis) to GAAP Basis Statement of Income ........................................................................158 Trust Funds Cemetery Perpetual Care Fund Balance Sheet .................................................................162 Cemetery Perpetual Care Fund Statement of Revenues, Expenses and Changes in Fund Balances ..................................................................163 Cemetery Perpetual Care Fund Statement of Cash Flows .................................................164 General Fixed Assets Account Group Schedule of General Fixed Assets by Source ..................................................................167 Schedule of General Fixed Assets by Source, Function and Activity ..................................168 CITY OF COLLEGE STATION, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 Table of Contents (Continued) - v - Schedule of Changes in General Fixed Assets by Function and Activity .............................170 STATISTICAL SECTION General Governmental Revenues and Other Financing Sources ......................................................172 General Governmental Expenditures and Other Uses by Function ..................................................174 Property Tax Levies and Collections ............................................................................................176 Assessed Value of Taxable Properties .........................................................................................179 Property Tax Rates, Ratios and Levies - All Direct and Overlapping Governments ............................180 Paving Assessment Collections ..................................................................................................182 Computation of Legal Debt Margin ...............................................................................................183 Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt Per Capita ..................184 Schedule of Direct and Estimated Overlapping Debt ......................................................................186 Ratio of Annual Debt Service Expenditures for General Obligation Debt to Total General Governmental Expenditures and Other Uses ..........................................................................187 Utility Funds - Schedule of Revenue Bond Coverage ......................................................................188 Construction Permits..................................................................................................................189 Principal Taxpayers ....................................................................................................................190 Principal Utility Customers ..........................................................................................................191 Summary of Insurance Coverage .................................................................................................192 Miscellaneous Statistical and Demographic Data..........................................................................193 - 1 - 1 INTRODUCTORY SECTION 2 3 January 17, 2003 Honorable Mayor Members of the City Council City of College Station, Texas The Comprehensive Annual Financial Report of the City of College Station, Texas ("City"), for the fiscal year ended September 30, 2002, is submitted herewith as mandated by the City’s Charter and state statutes. The charter and statutes require that the City annually issue a report on its financial position and activity and that this report be audited by qualified public accountants. The City employs Ingram, Wallis & Company to audit the financial section of this report. The City’s Accounting Division of the Fiscal Services Department prepares this financial report. Responsibility for the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the City. Both City Staff and the auditors believe that the data, as presented, is accurate in all material respects; that it is presented in a manner designed to fairly set forth the financial position of the City's various funds and account groups; and that all disclosures necessary to enable the reader to gain the maximum understanding of the City's financial affairs are included. The Comprehensive Annual Financial Report is presented in three major sections: introductory, financial, and statistical. The introductory section, which is unaudited, includes this transmittal letter, the City's organizational chart and a list of principal elected and appointed officials of the City. The financial section includes the general purpose financial statements, the combining and individual fund and account group financial statements and schedules, as well as the auditors' report on the financial statements and schedules. The statistical section, which is unaudited, includes selected financial and demographic information, generally presented on a multi-year basis to allow for trend analysis of the finances of the City. The City is required to undergo an annual single audit in conformity with the provisions of the Federal Single Audit Act of 1986, as amended, and U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations . Information related to this single audit, including the supplementary schedule of expenditures of federal and state awards, findings and recommendations, and auditors' reports on the system of internal control and compliance with applicable laws and regulations, are reported separately. This report includes all funds and account groups of the City. The City provides a full range of municipal services. These services include police and fire protection; the construction and maintenance of streets, storm drainage, and other infrastructure; municipal utilities in the areas of electricity, water, sewer, and sanitation; and recreational and cultural activities. The College Station Independent School District is administered by a separately elected board and operates with its own funding sources; therefore, it is not included in this report. 4 THE CITY OF COLLEGE STATION The City of College Station is in East Central Texas, approximately 140 miles north of the Gulf of Mexico, conveniently located in Brazos County 90 miles northwest of Houston, 165 miles south of Dallas, and 100 miles east of Austin. The City currently has a land area of 40.8 square miles and a 2001 estimated population of 70,075. The City has the power, by state statute, to extend its corporate limits by annexation, which it has done periodically. The City of College Station is governed under a home rule charter, has a Council-Manager form of government, and is organized under the Constitution and Laws of the State of Texas. The City is a home-rule city and was incorporated in 1938. The City Council is comprised of six members and a Mayor. All are elected at-large. The Council appoints the City Manager, the City Attorney, the City Secretary, and the Municipal Court Judge. Almost all other staff members work under the direction of the City Manager. Of major importance to the City of College Station is Texas A&M University, located on a 5,200 acre campus within the corporate limits of the City. Texas A&M University has a significant economic impact on the City, contributing an estimated $812.6 million annually to the local economy. Texas A&M University has consistently ranked in the top ten nationally among public institutions of higher education in both enrollment and research grants. Research dollars totaled approximately $407 million for 2002. The University has approximately 20,760 permanent and part-time employees with a payroll of $458 million and has a physical plant valued in excess of $1.5 billion. Student enrollment at Texas A&M University was 45,143 for the fall of 2002. In addition to the University, local employment is provided by more than 85 manufacturing industries, located in or adjacent to the City, which produce such products as aluminum windows, furniture, chemicals, dairy products, feeds and fertilizers, modular homes, bronze castings, and geophysical survey sensors. A research park is located within the University's campus. Major tenants include Hewlett Packard, Schlumberger, the Offshore Technology Research Center, and the Food Safety Inspection School National Training Center. Additionally, Lynntech is expanding in the Research Park. Automated Management Systems provides a major automated accounting service for independent property and casualty insurance agents. The City has also developed the College Station Business Center, a 200-acre business park. Tenants within the park include Universal Computer Systems (UCS), which will eventually employ approximately 1,200 people; Cabletime; SourceNet, a graphics advertising business, which will employ 350 people; Prodigene, a biotechnology research business; Heat Transfer Research, Inc., a software research and distribution business; and Stata Corporation, a software development business. Businesses either under construction or in place account for approximately 500,000 square feet of buildings and employ approximately 1,000 people. The 1,000,000 square feet of space in Post Oak Mall anchors retail business in the City. Major tenants of the mall shopping center are Sears-Roebuck, Dillard's, Foley's, Bealls, and J.C. Penney. Currently, a 105,000 square foot Home Depot store is under construction. Brazos County and the City of College Station are a major medical center for the Brazos Valley area. Scott and White opened its first medical clinic in College Station in 1986 and completed a major expansion in 1994 that increased the size of that clinic by some 70,000 square feet to 125,000 square feet. College Station Medical Center operates a 100 bed full service hospital, with a major trauma center added in 1998. Two multi-story professional buildings are included in the medical complex. 5 The taxable property values in the City increased more than 100 percent from 1993 to 2002 from $1.2 billion to $2.45 billion. Total taxable ad valorem valuations in 2002 increased by approximately $177 million, or 7.8% over 2001. Additions to the local economy included residential and commercial development. The local job market continues to be strong with Brazos County having a net increase of approximately 356 jobs in 2002 over 2001 to approximately 79,756 total jobs. The Bryan-College Station area has led the state and the nation with one of the lowest unemployment levels for the past seven years. For the quarter ending December 2002, the unemployment rate was 2.1 percent versus the Texas unemployment rate of 6.1 percent and the national unemployment of 6.0 percent. College Station is the site of the George Bush Presidential Library, Museum and School of Government and Public Service. The Library and associated facilities are located on the campus of Texas A&M University. Texas A&M provides additional programs and facilities such as research and instructional programs related to the library and museum, a conference center, communications center, educational museum/library center, and family-oriented facilities such as a park surrounding the presidential library and museum. During 2002, the presidential library and related facilities attracted more than 150,000 visitors to the community. As a result, the room occupancy rate for local hotels and motels for 2002 was in excess of 70 percent. The increase in tourism has spurred the construction of several new hotels. In addition, the City is currently under contract for a public/private venture to construct a 300-room full service hotel to be associated with a City owned 45,000 square foot conference center and a 270,000 square foot office complex. This project is planned for completion by early 2005. MAJOR INITIATIVES For The Year The City Council developed and approved a revised mission statement and a strategic plan that serve as general guidelines and provide current and long-term goals for the City. Major initiatives during the last fiscal year included infrastructure improvements in the Northgate area, implementation of the Wolf Pen Creek corridor plan, and the recruiting of businesses into the College Station Business Center. The City continues to devote significant attention to its municipal infrastructure. In November 1998, the citizens approved $24.2 million of general obligation bonds, approximately $6.4 million of which was issued in 2002, with a total issued to date of approximately $18.6 million leaving approximately $5.6 million of authorized bonds from the 1998 authorization. It is anticipated that an additional $4.8 million is planned for issuance in 2003. The voters approved $8.5 million in bonds for street improvements, $3.0 million for traffic signal and traffic management improvements, $2.5 million for fire station improvements, $1.8 million for acquisition of land for future public uses and cemetery, $4.9 million for parks improvements, and $3.6 million for acquisition of greenbelt/drainage land. A major park project completed during FY 2002 was the first phase of Veterans Park, a 150-acre regional park located between University Drive and Harvey Road east of Earl Rudder Freeway. The project includes soccer fields; softball fields and a memorial that was built through privately raised contributions. The major park project scheduled for FY 2003 is to begin development of the 515.5-acre Lick Creek Park. Both the Texas Department of Transportation (TXDOT) and the City maintain the City’s roadway system. The majority of the thoroughfares in the City are State owned and maintained. Those include: University Drive (State Highway 60), Wellborn Road, Texas Avenue (State Highway 6), Harvey Road (State Highway 30), George Bush Drive, Harvey Mitchell Parkway (FM 2818) and Highway 47. During FY 2002 the City completed an extension of George Bush East from just 6 south of Harvey Road to Holleman Drive, an extension of Dartmouth from Southwest Parkway to Krenek Tap Road, rebuilt Cherry Street in the Northgate area, and converted a portion of Second Street into a pedestrian Promenade in Northgate. The City is also purchasing right of way for an expansion of George Bush Drive east from its intersection with Texas Avenue to Dominik. This project will begin construction by the middle of FY 2003. Another street project planned for FY 2003 is an extension of Longmire between Graham Road and Birmingham. Several reconstruction projects are nearing construction: 1st and Maple Streets in Northgate, Tarrow from University to Lincoln, and Dominik Street. A joint project for the City, Texas A&M and TxDOT will provide sidewalks that will completely surround the Texas A&M campus. The Drainage Utility District was established by the City Council in October 1996 to provide resources to improve the City’s vast drainage system. Using funds generated by the drainage utility fee and bonds authorized by the voters for the acquisition of greenways, the City is expected to begin or complete approximately $5.1 million in improvements and land acquisitions during fiscal year 2003. “Floodsafe," the designation given to these projects, is intended to reduce the potential for property damage due to flooding. The City has a multi-year series of projects to replace wastewater collection lines in the Eastgate and Northgate areas. In addition, a project to install a major wastewater interceptor in the northeast portion of the city to support additional development North of University Drive is planned. The City completed a 2.0 million-gallon per day (MGD) plant for Lick Creek Wastewater Treatment facility and removed the original one-half MGD plant. Additionally, the utility will begin work to move lines out of the right-of-way along the planned widening of Texas Avenue south of Dominik to Harvey Mitchell Parkway. The City plans to complete approximately $4.1 million in projects during FY 2003 without issuing any additional debt. The major capital initiatives for the water utility include an additional well and a phased parallel water transmission line. The City has hired a firm to design a parallel water transmission line from the well field to the Dowling Road storage area. The new line will add capacity and increase the reliability of the water transmission system. The utility plans to spend approximately $9.3 million and will use funds from existing bonds or accumulated cash. There is no plan to issue any debt for water capital projects in FY 2003. Electric projects include system distribution additions and underground conversion projects in conjunction with major thoroughfare construction and reconstruction. The City’s electric utility continues to enhance street lighting on thoroughfares within the City and to enhance the appearance of the community by placing more lines underground or moving the lines to less visible locations. During 2002, the City sent out requests for proposals for purchased power. In September 2002, the City entered into an agreement with American Electric Power Company. The contract is for five years and sets the price of fuel during the course of the contract. The contract goes into effect as of February 2, 2003. The City's cost is effectively fixed for the next five years, which puts the utility in a strong position relative to other utilities in the state. The City of College Station is pleased with its citizens' response to the waste reduction and recycling programs. The efforts initiated by the City, combined with continued citizen participation have made constant improvements to sanitation service. In fiscal year 2002, 3,977 tons of waste were recycled; an 11.7% increase from the previous year. Despite a decrease of 875 gallons, the City's oil recycling center collected 5,125 gallons of oil during 2002. In addition, citizens recycled a total of 1,510 Christmas trees in 2002. Statistics indicate that through the recycling program College Station residents diverted 26.7% of their waste from the landfill. The growth of College 7 Station brings with it an increase in the amount of waste produced in both residential and commercial areas. In 2002 alone, 47,113 tons of waste was collected, a 4.2% rise over the past fiscal year. Overall community cooperation in the recycling program and waste reduction efforts is vital to helping the City manage this increase. For The Future The City continues to experience and project increasing revenues for fiscal year 2003 and beyond, with projected growth in sales tax revenue, franchise fees, utility revenues, and continued growth in taxable property values. Based on overall economic trends, the city's forecast of revenue growth from year to year has been reduced somewhat. As one instrument to meet the high service levels currently offered to the citizens, Departments are encouraged to continue to find ways to improve productivity. The economic slowdown both nationally and within the state does not seem to have affected College Station as yet. The City Council has set aside existing cash from the General Fund unreserved fund balance for the following purposes: $500,000 for the City’s portion of the Texas Avenue Phase II streetscape, and $350,000 for the City’s portion of George Bush Drive medians. These funds along with the planned use of utility revenues and unreserved cash help reduce the need for debt issues for capital projects. The Council authorized the use of utility cash reserves for the acquisition of land for additional business park space and the construction of additional office space to be located near the Office of Information and Technology offices on Krenek Tap Road. The new office building and municipal court will be open for business in July of 2003. The Cities of College Station and Bryan jointly formed the Brazos Valley Solid Waste Management Agency ("BVSWMA") in 1990 in order to achieve economies of scale in the joint operation, management and planning of a regional landfill facility. BVSWMA has located and plans to acquire a new landfill site. As a result, BVSWMA is in the process of procuring studies and design work and applying for necessary permits for the site. It is anticipated that the new site will meet the waste needs of the area for up to 50 years. The Agency intends to acquire and permit the site prior to using up the available space at its current Rock Prairie Road Landfill (“RPRL”) site. The RPRL is projected to have a capacity sufficient to last until 2006. Staff is working on plans to expand the existing site onto neighboring property, which is already owned by the two cities and is currently used for excavation to provide cover for the existing landfill area. The plan is to extend the life of the existing site to ensure adequate capacity is provided until a new site is permitted. Phase I and II of the Bike Loop project, a multi-agency project between the City and the Texas Department of Transportation, are complete while Phase III is in the engineering design stages. This project is a part of the City’s Bikeway Master Plan, which is intended to bring a more bike- friendly environment to the community. Activities are well underway in Northgate with the facade improvement program, where businesses have received financial assistance to bring their buildings up to standards set by the Northgate Revitalization Committee. Northgate revitalization also includes the completed pedestrian promenade and parking lot in the Patricia Street area. A Second Street Promenade was constructed during 2002 to add to the pedestrian friendly environment the City has as a vision for that area. The Cherry Street reconstruction was also completed during 2002 while First and Maple Streets are scheduled for reconstruction during 2003. The revitalization of the Southside and the Northgate areas is a high priority for the City of College Station. 8 Economic development in College Station takes several forms. Tourism is expected to continue to play an important role in College Station’s economy. Several new hotels opened during 2002 providing for additional hotel rooms and increased hotel/motel tax revenues. The City has agreements and is in design for a public/private hotel/conference center. The City created a tax increment revitalization zone to cover the area of the hotel, conference center, an office building to be used as Adam Corporation’s home office and adjoining land anticipated to develop as a commercial industrial district. It is hoped that the new convention center will be open by early 2005. FINANCIAL INFORMATION The City is responsible for establishing and maintaining a system of internal controls. The controls are designed to ensure that the assets of the City are protected from loss, theft or misuse and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The system of internal controls is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management. Single Audit The City receives federal financial assistance and is responsible for ensuring that an adequate system of internal control is in place to ensure compliance with applicable laws and regulations related to those programs. This system of internal control is subject to periodic evaluation by management. Tests are made to determine the adequacy of the system of internal control, including that portion related to federal financial assistance programs, as well as to determine that the City has complied with applicable laws and regulations. The results of the City’s single audit for the fiscal year ended September 30, 2002, provided no significant violations of applicable laws or regulations relating to federal financial assistance programs of the City. Budgetary Controls The City maintains a system of budgetary controls. The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annual budget appropriations ordinance approved by the City Council. Activities of the General Fund, Debt Service Fund, Special Revenue Funds, Capital Projects Funds, Utility Enterprise Funds, and the Internal Service Funds are included in the budget appropriations ordinance. The level of budgetary control, that is the level at which expenditures cannot legally exceed appropriations, is established at department level within the General Fund and at the fund level for all other funds. The City's Office of Budget and Strategic Planning monitors expenditure activity on a monthly basis against budgeted amounts and reports significant variances to the City Manager. The City continues to meet its responsibility for sound financial management. General Fund and Debt Service Fund Revenues and other Financing Sources The following schedule presents a summary of General Fund and Debt Service Fund revenues and other various financing sources for the fiscal year ended September 30, 2002. Comparisons to the previous fiscal year have been included. 9 Revenue Source Fiscal Year Ended 9/30/02 Percent of Total Fiscal Year Ended 9/30/01 Increase (Decrease) General Fund Property Tax $4,555,346 11.11 %$3,813,167 $742,179 Sales and Mixed Drink Tax 13,634,978 33.25 13,031,079 603,899 Franchise Fees 1,714,241 4.18 1,644,627 69,614 Licenses and Permits 870,636 2.12 779,159 91,477 Fines, Forfeits and Penalties 2,225,354 5.43 1,796,203 429,151 Charges for Services 2,067,813 5.04 1,892,964 174,849 Operating Transfers In 7,288,572 17.77 6,895,193 393,379 Miscellaneous Revenues 1,462,443 3.57 1,750,703 (288,260) Other Financing Sources 30,106 0.07 24,329 5,777 Debt Service Property Tax 7,160,962 17.46 5,986,114 1,174,848 Total Revenues and Other Financing Sources $41,010,451 100.00 %$37,613,538 $3,396,913 Almost all revenues were up in fiscal year 2002 over fiscal year 2001, increasing by more than $3.39 million or 9.0%. The most significant absolute change in revenue sources from 2001 to 2002 was Debt Service Property Tax, which increased by approximately $1.2 million or 19.6%. The increase was due primarily to anticipated debt service increases resulting from issuing almost $9 million in certificates for four transportation projects: Dartmouth extension, Greens Prairie Road widening, design for Highway 60 east widening, and Barron Road grade separation at Highway 6. Ad valorem taxes to the General Fund increased by $742,179, a year to year change of 19.5%. The increase was due to both increases in value and a tax rate increase to fund additional costs for health care insurance, additional staffing for a new fire station and additional operating costs for Veterans Park. The next largest increase in revenues occurred in Sales and Mixed Drink Taxes that increased by $603,899 or 4.6%. Fines, Forfeits and Penalties increased by $429,151 or 23.9% due to increased enforcement activity by police, increased fines and improved collections in Municipal Court. Operating Transfers In increased by $393,379 or 5.7%. These transfers relate to the revenues of the various Enterprise Funds of the City and tend to grow as those revenues grow. Charges for Services increased on a year to year basis by $174,849 or 9.2 % due to continued strong building activity and increased building and planning related fees. Miscellaneous revenues were down primarily due to drops in investment income related to the overall economic slowdown and reductions in interest rates earned by the City. REVENUES BY SOURCE GENERAL AND DEBT SERVICE FUNDS FISCAL YEAR 2002 $ 41,010,451 33.25% Sales Tax & Mixed Drink 20.41% Other 17.77% Operating Transfers In 28.57% Property Tax 10 Property taxes received during fiscal year 2002 were based on a tax levy of 47.77 cents per $100 of assessed valuation. Under Texas statutes, assessed valuation represents 100 percent of market value. The total assessed valuation of taxable properties was $2,450,180,223, which represents a 7.8 percent increase from fiscal year 2001. Ad valorem taxes also increased as a result of an increase in the tax rate of $0.0484 or 11.3 %. The increase in property value resulted from the completion of several major retail stores along with strong building activity in the single family and multifamily residential sector. Distribution of property tax rates for the last five years is as follows: Purpose 2002 2001 2000 1999 1998 General Fund $0.1846 $0.1662 $0.1631 $0.1618 $0.1516 Debt Service Fund 0.2931 0.2631 0.2662 0.2675 0.2777 Total Ad Valorem Tax Rate $0.4777 $0.4293 $0.4293 $0.4293 $0.4293 General Fund and Debt Service Fund Expenditures and Other Financing Uses The following schedule presents a summary of General Fund and Debt Service Fund expenditures for the fiscal year ended September 30, 2002. Comparisons to the previous fiscal year are included. Function Fiscal Year Ended 9/30/02 Percent of Total Fiscal Year Ended 9/30/01 Increase (Decrease) Current: General Government $9,731,964 23.43 %$8,783,263 $948,701 Police 8,914,893 21.46 8,273,632 641,261 Fire 6,405,874 15.42 5,702,804 703,070 Public Works 5,211,720 12.55 4,583,796 627,924 Parks and Recreation 6,045,622 14.55 5,185,737 859,885 Library Services 734,083 1.77 581,768 152,315 Less: Reimbursed Administrative Costs (5,823,852)(14.02)(5,287,928)(535,924) Other 305,049 0.73 606,757 (301,708) Debt Service: Principal 5,950,000 14.32 4,475,000 1,475,000 Interest and Fiscal Charges 3,425,390 8.25 3,213,770 211,620 Debt Issuance Costs 0 0.00 38 (38) Other 8,752 0.02 11,426 (2,674) Capital Outlay 150,000 0.36 376,328 (226,328) Operating Transfers Out 480,807 1.16 767,000 (286,193) Total Expenditures and Other Financing Uses $41,540,302 100.00 %$37,273,391 $ 4,266,911 Year to year expenditure changes for the General and Debt Services Funds can be attributed to a number of general factors and a few specific decisions. The general factors include salary and benefit changes and increases related to policies that set aside funds for future replacements. These changes affect all departments. The City's decision to substantially increase its funding for health insurance and to continue pay adjustments for employees accounted for more than $400,000 in increased costs to the General Fund. The Council gave the direction to focus on staff salaries to bring salaries in line with similar employees in similar cities. The salary increases are the single most significant change affecting expenditures over the past several years. New positions in Police (1), Fire (4), Development Services (4), and Parks (4) contributed to the year to year changes in expenditures. Additional authorization for street and drainage maintenance also 11 contributed to the total increase. Debt Service increases resulted from issuing additional debt based on voter approved bonds and other debt issued for capital projects. The net change in Reimbursed Administrative Costs was associated with services provided to other operations of the City and relates to normal increases in costs. General and Administrative costs are reviewed annually, and costs are distributed to each of the operating funds based on that review. The item listed as "Other" is related to the non-departmental expenditures of the City and is used for funding of non-City activities and certain one-time projects not related to a particular department. The decrease in expenditures from fiscal year 2001 to fiscal year 2002 is due to fewer funds being allocated for one-time projects that are funded from the General Fund one-time funds. General Fund Balance The unreserved and undesignated fund balance of the General Fund increased by $349,985 in 2002, a 4.0% increase from fiscal year 2001. The City Council policy on reserve levels requires that the undesignated fund balance be at least equal to 15 percent of expenditures. The undesignated fund balance of $9,122,197 is approximately 28.8 % of fiscal year 2002 expenditures and exceeds the minimum requirement set by the Council policy. Utility Enterprise Funds The City of College Station operates electric, water, sewer and solid waste services for the benefit of its citizens. The City purchases 100 percent of its electric power requirement from Texas Utilities. The City is served through two 138 kVA transmission lines tied to a ring bus at the City switching station, four substations, and 290 miles of distribution lines. The electric utility ended the fiscal year with working capital of $14,265,880 a decrease of $517,983 or 3.5 % from fiscal year 2001. Much of the decrease was due in large part to the City’s decision to use current resources to provide for capital requirements for the electric system and certain other capital acquisitions. This strategy will help to maintain a low debt to equity ratio, maintain relatively low annual debt service payments, and to be more flexible as it faces the challenges of deregulation within the electric utility industry. The City’s policy with regard to its enterprise funds is to maintain at least 15 percent of annual operating expenses in working capital. At September 30, 2002, Electric Fund working capital equalled approximately 35.6%. EXPENDITURES BY FUNCTION GENERAL AND DEBT SERVICE FUNDS FISCAL YEAR 2002 $ 41,540,302 22.59% Debt Service 14.55% Parks and Recreation 12.55% Public Service 9.41% General Government 4.02% Other 36.88% Public Safety 12 Since 1981, the City has had the capability to produce and deliver 100 percent of its water needs through its own water well and transmission system. The water production and transmission system includes five wells with a combined capacity of 19 million gallons per day (MGD), and a delivery system of 14 miles of 30-inch diameter pipeline with two pumping s tations. A sixth well will add an additional 5 MGD to capacity. Working capital in the Water Fund at the end of fiscal year 2002 was $11,117,811, an increase of approximately 16.1% from fiscal year 2001. Water Fund working capital was 190.7% of total operating expense and exceeds the minimum requirement under the Council's adopted policy. In fiscal year 2002, the City issued approximately $7.4 million in bonds for capital projects. There are no additional bonds anticipated for 2003. The Carter Creek Treatment Plant has a rated treatment capacity of 9.5 million gallons per day (MGD). The Lick Creek Treatment Plant, the newer of the two plants, came on-line during 2002 and has a 2.0 MGD treatment capacity. The two plants have a combined treatment capacity of 11.5 MGD as compared to average current daily demand of 6 MGD. The Sewer Fund ended the fiscal year with a working capital balance of $3,757,038, which was 23.9% above fiscal year 2001. Wastewater Fund working capital was 71.3 percent of total operating expenses and is well above the minimum requirement for the fund. Sanitation services are provided to the citizens through a combination of residential curbside pick-ups and commercial container services. For fiscal year 2002, the Sanitation Fund ended the fiscal year with a working capital balance of $1,305,126, a decrease of 21.6% from fiscal year 2001. This decrease resulted from a combination of increased spending due to an additional commercial route, a one-time purchase of equipment, and lower than expected revenues. Summary financial information of the combined utility enterprise operations for the fiscal year ended September 30, 2002 with comparison to the previous fiscal year, is as follows: Fiscal Year Ended 9/30/02 Fiscal Year Ended 9/30/01 Operating Revenues: Charges for Services: Electric $44,238,340 $42,290,635 Water 8,144,195 8,072,508 Sewer 7,880,400 7,045,955 Sanitation 4,280,436 4,035,385 Other 1,904,236 1,775,758 Operating Expenses: Electric Operations 37,679,409 37,299,928 Salaries and Benefits 4,249,839 3,734,612 Supplies, Maintenance and Services 6,038,164 5,674,097 Reimbursed Administrative 2,587,846 2,604,178 Depreciation 4,915,869 3,676,882 Other 98,073 310,465 Non-operating Revenues (Expenses): Investment Income 1,896,883 2,886,561 Interest Expense (3,989,558)(2,402,956) Other, Net 3,998,099 1,374,888 Operating Transfers Out (6,534,900)(14,057,673) Net Income (Loss)$6,248,931 $(2,279,101) Electric, Water, Wastewater and Sanitation Enterprise Fund revenues increased in fiscal year 2002 from the previous fiscal year. Commercial sanitation rates were increased, as were wastewater rates 13 for most classes of customers. Other revenue increases were due to additional customers and related increased usage. Electric revenues were up due to increased costs of purchased power, which is passed directly to customers. The reduction in water revenues was due to milder temperatures and more rain than in the previous couple of years. The increase in Other Non- operating Revenues is primarily due to the application of GASB 33 which requires that developer contributions be recorded as revenues. Expenses were up approximately 4.3% in fiscal year 2002 over fiscal year 2001. The largest increase occurred in depreciation expense as a result of large capital projects that were completed during fiscal year 2002 and recognition of the depreciation of those new assets. Operating transfers for the enterprise funds were down by approximately $7.5 million due to some one-time transfers made during fiscal year 2001. The change in net income is approximately $5.3 million going from a net loss to net income. Northgate Parking Fund The Northgate Parking Fund was created to account for the activities of a parking garage completed in August 2001, a parking lot completed in 1997, on-street parking meters, and parking enforcement activities in Northgate. Revenues for the fund were $452,061 with total operating expense of $598,220. The largest single item in expense is depreciation, which did not use current assets. Working capital for the fund ended at approximately $833,322, which is 139.3% of operating expense. This is the first year of operations for the garage and the system as a whole. It is anticipated that the operating revenues will increase with increased acceptance of a user paid parking system in the area, which will result in greater utilization of the facilities. Communication Services Fund The Communication Services Fund was established to provide a means of charging the various departments for the support received to provide radio, telephone, and pager services through the various means available to the City. Charges are based on the number and types of services a department requires. The fund ended fiscal year 2002 with a net loss of $112,416. More than 90% of the loss was due to depreciation which does not require cash. Working capital at fiscal year end was a negative $68,783. The deficit will be made up in future years as rates are adjusted to provide the necessary cash to bring the fund into balance. Typically internal service funds do not require large working capital balances since funding is a part of the ongoing expenses of the various operating funds. Employee Benefits Fund The City of College Station has a partially self-insured employee benefits plan providing medical and dental insurance to employees and their families. The City purchased a fully insured health insurance plan for its employees and their dependents during fiscal year 2002. The plan is funded through monthly premiums charged per employee to the various operating departments. Employees who choose to include family members are charged an additional fee to pay most of the additional cost to the City. During fiscal year 2002, the plan had a net income of $621,375. Working capital is approximately $759,285 or 24.4% of operating expense for fiscal year 2002. The City has changed its insurer again for 2003; however, it has remained in a fully insured plan. Equipment Replacement Fund The Fleet Replacement Fund was established October 1, 1991. In fiscal year 1994, the name of the fund was changed to the Equipment Replacement Fund. The revenues of the fund are derived from charges to the departments for the various pieces of equipment used, the telephone system, and the 800 MHz radio system. The fund is used to purchase and replace many types of equipment where charges have been identified for the various departments. Net income of the fund was $969,888 for fiscal year 2002 versus $1,016,973 for fiscal year 2001. Staff reviews the individual charges and funding requirements to determine where and what changes may need to be made to keep the fund capable of replacing equipment when needed. 14 Fleet Maintenance Fund The Fleet Maintenance Fund was established October 1, 1996. The fund is designed to account for the expenses related to maintenance of the various pieces of mobile equipment owned by the City. The revenues of the fund are derived from charges to the departments based on the costs for maintaining various types of equipment due to usage. Expenses are derived primarily from personnel costs and the cost of purchasing supplies for repairs or maintenance to the various pieces of equipment. The fund showed an additional net loss of $29,533 for fiscal year 2002. Working capital in the Fleet Maintenance fund was $2,133, which is sufficient for this type of fund. Print/Mail Fund The Print/Mail Fund was established October 1, 1998. The revenues of the fund are derived from charges to the departments for the various printing services and a prorated portion of mail handling and delivery services. The fund showed a net loss of $4,363 in fiscal year 2002 as compared to a net income of $14,313 in fiscal year 2001. Working capital for the fund at year-end was $39,074, which is sufficient for this fund. Property and Casualty Fund The Property and Casualty Fund is funded through property/casualty insurance premiums charged to the various departments and divisions for a self-insured program of the City. Premiums are adjusted annually to meet the expenses of the fund and are based on review of the impact the various City departments have on claims and insurance costs. The fund had a net decrease in retained earnings of $70,009 in fiscal year 2002 as compared to a net increase of $133,443 in fiscal year 2001. Working capital in the fund is $512,289. The recent changes in the program indicate that the working capital balance should be increased to approximately $900,000 for this fund. Unemployment Fund The City's Unemployment Fund is a fully self-insured fund used to account for expenses related to claims from persons who become unemployed. No contributions have been made to this fund for the last four fiscal years. The fund showed a net loss of $4,527 for fiscal year 2002 versus a net loss of $26,510 for fiscal year 2001. The retained earnings of this fund, $112,631, have been intentionally reduced to a level that more nearly reflects the actuarial needs of the fund. Utility Billing Fund Utility Billing is responsible for meter reading, billing, and collections for more than 33,000 electric accounts and also bills for water, sewer, sanitation, and drainage utility fees. In the 1989 fiscal year budget, the Utility Billing Fund was authorized as an Internal Service Fund and is financed with user charges from the various utilities operating funds. In fiscal year 2002, the fund experienced a net increase in retained earnings of $48,678 following a net decrease in retained earnings of $21,307 in fiscal year 2001. Remaining working capital, $168,569, is sufficient to meet the needs of the fund. Workers' Compensation Fund The City of College Station has a self-insured workers' compensation fund that is used to account for the costs of employee claims for injuries/illnesses resulting at or from the workplace. The revenues of the fund are derived from premium charges to the various departments based on actuarial analysis of risks. The fund had a net decrease of $1,099 in retained earnings for fiscal year 2002 as compared to a net decrease of $215,828 in fiscal year 2001. Working capital in the fund has been reduced due to transfers to the Employee Benefits Fund. It is anticipated that the working capital balance will need to be increased in the future to approximately $800,000. 15 Debt Administration As of September 30, 2002, the City had a total of $74,945,000 in General Obligation Bonds, Certificates of Obligation and other debt relating to Governmental Fund and Special Revenue Fund types. That debt equals approximately $1,034 per capita. Debt service comes from revenues generated by the local property tax, hotel/motel tax, a tax increment district in the City and inter-fund transfers when appropriate. Under current state statutes, the City's ability to increase the levy for property taxation is subject to a maximum rate of $2.50 per $100 valuation versus the current total ad valorem rate of $0.4777. The Utility Funds have $78,235,000 in revenue bonds that are to be repaid from the revenues of the electric, water and sewer utilities. Cash Management All investment activity of the City is handled in accordance with Resolution 4-11- 2002-11.04 adopted in April 2002, approving and authorizing the implementation of the City of College Station Investment Policy. The investment policy is established as required by state law and conforms to state investment statutes. It ensures the safety of all funds entrusted to the City, ensures the availability of those funds for the payment of all necessary obligations of the City, and provides for the investment of funds in securities that earn returns for the City. The policy includes the three guiding principles for investment of funds by the City: safety, liquidity and yield. Safety, that is the certainty that the City will get its investment back, is the most important of those principles. The City separates the investment activities from traditional banking services. Regular banking services are handled under a three-year depository agreement effective October 1, 2000, with First American Bank. The City pays fees based on the activity level for the various services provided by its depository bank. The City currently invests funds in a range of investments allowable under state law. The City establishes accounts with major brokerages for the purchase and sale of U.S. Government and Agency obligations. All purchases and sales of securities are on a delivery-versus -payment basis through a safekeeping account at the City's third-party bank. As of September 30, 2002, the City's investment portfolio consisted of the following: Bank Demand Accounts $ 1,503,297 Money Market Account 9,090,204 Flex Repurchase Agreement 22,310,636 State Investment Pool 35,494,843 U.S. Treasury Securities 1,819,018 U.S. Government Agencies and Instrumentality Securities 56,006,455 Total $126,224,453 The City earned $5,439,992 on an average investment balance of approximately $130 million, a rate of return of 4.17 percent, for the year ended September 30, 2002. Compared to prior years' earnings of $6,481,436 and a market benchmark of 4.05 percent, the City's investment yield was: 16 Investment results on the portfolio are compared to U.S. Treasury note with a maturity that most closely matches the portfolio’s dollar-weighted average maturity. Every Thursday a T-Bill matures and proceeds are reinvested alternately in three-month and six-month T-Bills. This rolling index provides a benchmark for evaluating risk-free cash management portfolios with short-term liquidity needs for payroll and accounts payable. Risk Management The City's property/casualty and workers' compensation insurance programs are administered by the Risk Management Division in the Fiscal Services Department. The City's workers' compensation claims are reviewed and paid, when appropriate, by Hammerman and Gainer as the City's third party administrator. Claims are paid from a self-insurance reserve fund carried to provide for claims of $250,000 or less with third party carriers providing excess insurance for claims in excess of that amount up to $5,000,000/$15,000,000. Safety programs are coordinated on an ongoing basis by the Risk Manager. OTHER INFORMATION Independent Audit State statutes require an annual audit by independent certified public accountants. The accounting firm of Ingram, Wallis & Company, P. C. has been retained by the City Council for this function. In addition to meeting the requirements set forth in state statutes, the audit also was designed to meet the requirements of the Federal Single Audit Act, as amended, of 1996 and related OMB Circular A-133. The independent auditors' report on the general purpose financial statements and combining, individual fund and account group statements and schedules is included in the financial section of this report. The auditors' reports related specifically to the single audit are issued separately. 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 of College Station for its Comprehensive Annual Financial Report ("CAFR") for the fiscal year ended September 30, 2001. The Certificate of Achievement is a prestigious national award that recognizes conformance with the highest standards for preparation of state and local government financial reports. 0% 2% 4% 6% 8% 10% '98 '99 '00 '01 '02 RATES OF RETURN City ROR Benchmark ROR 17 In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized comprehensive annual financial report, whose contents conform to program standards. Such CAFR 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 College Station has received a Certificate of Achievement twenty-one out of the last twenty-two years. We believe our current report continues to conform to the Certificate of Achievement program requirements, and we are submitting it to the GFOA. Acknowledgments The preparation of this report on a timely basis could not have been accomplished without the efficient and dedicated services of the entire staff of the Fiscal Services Department. We would like to express our appreciation to all members of the department who assisted and contributed to its preparation. We would also like to thank the Mayor and City Council for their interest and support in planning and conducting the financial operations of the City in a responsible and progressive manner. Finally, we would like to thank our auditors, Ingram, Wallis & Company, P. C., whose professional expertise and advice have resulted in continuing improvements in the quality of the City's financial reporting. Respectfully submitted, Thomas E. Brymer Charles Cryan City Manager Director of Fiscal Services 20 CITY OF COLLEGE STATION, TEXAS PRINCIPAL CITY OFFICIALS September 30, 2002 Elected Officials: Mayor....................................................................................................................................Ron Silvia Council Member, Place 1 .................................................................................................James Massey Council Member, Place 2 .......................................................................................................John Happ Council Member, Place 3 ..................................................................................................Winnie Garner Council Member, Place 4 .....................................................................................................Scott Mears Council Member, Place 5 ...............................................................................................Dennis Maloney Council Member, Place 6 .....................................................................................................Anne Hazen City Administration: City Manager ................................................................................................................Thomas Brymer Director of Public Utilities ......................................................................................................John Woody Director of the Office of Technology and Information Services ..............................................Olivia Burnside Director of Fiscal Services .................................................................................................Charles Cryan Director of Economic Development Services .............................................................................Kim Foutz Director of Development Services ........................................................................................Kelly Templin Fire Chief .......................................................................................................................David Giordano Director of Parks and Recreation .....................................................................................Stephen Beachy Director of Human Resources ...........................................................................................Julie O’Connell Police Chief ....................................................................................................................Edgar Feldman Director of Public Works ........................................................................................................Mark Smith City Attorney .............................................................................................................Marshall Cargill, Jr. City Secretary ..................................................................................................................Connie Hooks Director of Budget and Strategic Planning .........................................................................Jeffrey Kersten Public Relations and Marketing Manager.................................................................................Kelley Cole 21 FINANCIAL SECTION CITY OF COLLEGE STATION, TEXAS COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS SEPTEMBER 30, 2002 (With comparative totals for the fiscal year ended September 30, 2001) Governmental Fund Types General Special Revenue Debt Service Capital Projects Assets and Other Debits Assets Equity in Cash and Cash Equivalents 5,772,290$ 8,504,056$ 1,287,038$ 20,761,465$ Equity in Investment 4,876,881 7,186,084 1,087,571 17,543,820 Receivables Accrued Interest 61,348 79,649 13,874 207,320 Grants 47,201 184,321 0 37,743 Letter of Credit 25,000 0 0 0 Accounts 440,124 6,669 0 369,458 Escrow 0 0 0 0 Special Assessments 21,796 0 0 0 Taxes 1,313,154 0 204,055 0 Notes and Loans 0 85,393 0 0 Other 5,755 0 0 0 Less Allowance for Uncollectable Accounts (25,721)(860)0 (10,340) Due from Other Funds 0 0 0 0 Inventories 66,308 0 0 0 Prepaid Costs 0 0 0 0 Restricted Assets Equity in Cash and Cash Equivalents 240,748 0 0 0 Equity in Investments 203,436 0 0 0 Receivables Accrued Interest 0 0 0 0 Accounts 0 0 0 0 Advances to Other Funds 0 0 0 0 Equity in Joint Venture 0 0 0 0 Deferred Charges, Net 0 0 0 0 Property and Equipment, Net 0 0 0 0 Other Debits Amount Available for Retirement of Bonded Indebtedness 0 0 0 0 Amount to be Provided for Accrued Vacation Leave 0 0 0 0 Retirement of Bonded Indebtedness 0 0 0 0 Total Assets 13,048,320$ 16,045,312$ 2,592,538$ 38,909,466$ The notes to the general purpose financial statements are an integral part of this statement. 26 Fiduciary Totals Proprietary Fund Types Fund Types Account Groups (Memorandum Only) Enterprise Internal Service Trust General Fixed Assets General Long- Term Debt 2002 2001 14,904,342$ 4,715,260$ 398,446$ 0$ 0$ 56,342,897$ 43,430,100$ 12,622,330 3,984,481 336,694 0 0 47,637,861 45,780,767 142,620 43,153 3,771 0 0 551,735 997,969 0 0 0 0 0 269,265 394,905 0 0 0 0 0 25,000 25,000 9,457,850 161,626 3,191 0 0 10,438,918 9,362,384 200,469 0 0 0 0 200,469 197,989 0 0 0 0 0 21,796 21,796 0 0 0 0 0 1,517,209 1,667,948 12,522 0 0 0 0 97,915 107,047 1,117,669 11,240 0 0 0 1,134,664 1,163,988 (1,616,044)(15,513)(679)0 0 (1,669,157)(1,593,544) 0 69,504 0 0 0 69,504 97,680 1,299,184 108,516 3,226 0 0 1,477,234 2,061,874 0 68,211 0 0 0 68,211 41,346 11,815,335 0 0 0 0 12,056,083 11,622,593 9,984,176 0 0 0 0 10,187,612 12,886,353 129,752 0 0 0 0 129,752 232,002 422 0 0 0 0 422 0 200,000 0 0 0 0 200,000 200,000 6,289,525 0 0 0 0 6,289,525 5,447,202 762,602 0 0 0 0 762,602 705,759 160,790,112 9,511,334 0 140,353,195 0 310,654,641 273,486,912 0 0 0 0 2,355,213 2,355,213 3,563,589 0 0 0 0 1,433,495 1,433,495 1,288,346 0 0 0 0 72,589,788 72,589,788 56,406,411 228,112,866$ 18,657,812$ 744,649$ 140,353,195$ 76,378,496$ 534,842,654$ 469,596,416$ (Continued) The notes to the general purpose financial statements are an integral part of this statement. 27 CITY OF COLLEGE STATION, TEXAS COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS SEPTEMBER 30, 2002 (With comparative totals for the fiscal year ended September 30, 2001) (Continued) Governmental Fund Types General Special Revenue Debt Service Capital Projects Liabilities, Equity and Other Credits Liabilities Accounts Payable 786,260$ 97,429$ 0$ 816,416$ Due to Other Funds 0 0 0 0 Accrued Interest Payable 0 0 0 0 Retainage Payable 157 25,342 0 361,977 Advance from Other Funds 0 200,000 0 0 Refundable Deposits 5,763 19,044 0 0 Claims Payable 0 0 0 0 Accrued Liabilities 1,218,055 (2,447)33,270 244 Customer Construction Advances 29,963 0 0 25,000 Other Deferred Revenues 896,897 89,338 204,055 0 Liabilities Payable from Restricted Assets Accounts Payable 0 0 0 0 Accrued Interest Payable 0 0 0 0 Retainage Payable 0 0 0 0 Accrued Liabilities 0 0 0 0 Refundable Deposits 0 0 0 0 Revenue Bonds 0 0 0 0 Long-Term Debt Revenue Bonds 0 0 0 0 Unamortized Premium on Bonds 0 0 0 0 General Obligation Bonds 0 0 0 0 Certificates of Obligation 0 0 0 0 Accrued Vacation 0 0 0 0 Total Liabilities 2,937,095 428,706 237,325 1,203,637 Equities and Other Credits Contributed Capital 0 0 0 0 Investment in General Fixed Assets 0 0 0 0 Retained Earnings Reserved 0 0 0 0 Unreserved 0 0 0 0 Fund Balances Reserved 989,028 3,156,451 2,355,213 4,430,607 Unreserved Designated for Subsequent Years Expenditures 0 0 0 0 Undesignated 9,122,197 12,460,155 0 33,275,222 Total Equity and Other Credits 10,111,225 15,616,606 2,355,213 37,705,829 Total Liabilities, Equity and Other Credits 13,048,320$ 16,045,312$ 2,592,538$ 38,909,466$ The notes to the general purpose financial statements are an integral part of this statement. 28 Fiduciary Totals Proprietary Fund Types Fund Types Account Groups (Memorandum Only) Enterprise Internal Service Trust General Fixed Assets General Long- Term Debt 2002 2001 5,857,070$ 630,949$ 1,582$ 0$ 0$ 8,189,706$ 7,265,608$ 0 69,504 0 0 0 69,504 97,680 3,942 0 0 0 0 3,942 3,940 16,817 0 0 0 0 404,293 407,066 0 0 0 0 0 200,000 200,000 0 0 0 0 0 24,807 25,350 0 151,495 0 0 0 151,495 412,677 587,726 69,680 0 0 0 1,906,528 1,752,612 92,152 0 0 0 0 147,115 236,754 822 0 0 0 0 1,191,112 1,258,747 5,140,809 0 0 0 0 5,140,809 5,655,401 814,201 0 0 0 0 814,201 446,457 857,256 0 0 0 0 857,256 485,247 9,238 0 0 0 0 9,238 32,738 1,036,699 0 0 0 0 1,036,699 1,214,475 3,815,000 0 0 0 0 3,815,000 3,165,000 74,420,000 0 0 0 0 74,420,000 60,020,000 (110,471)0 0 0 0 (110,471)(131,666) 0 0 0 0 41,665,000 41,665,000 39,375,000 0 0 0 0 33,280,000 33,280,000 20,595,000 257,454 84,300 0 0 1,433,496 1,775,250 1,601,528 92,798,715 1,005,928 1,582 0 76,378,496 174,991,484 144,119,614 38,716,016 4,164,452 0 0 0 42,880,468 42,011,668 0 0 0 140,353,195 0 140,353,195 123,674,551 22,281,569 0 0 0 0 22,281,569 20,600,566 74,316,566 13,487,432 0 0 0 87,803,998 82,169,024 0 0 743,067 0 0 11,674,366 10,056,109 0 0 0 0 0 0 12,749,505 0 0 0 0 0 54,857,574 34,215,379 135,314,151 17,651,884 743,067 140,353,195 0 359,851,170 325,476,802 228,112,866$ 18,657,812$ 744,649$ 140,353,195$ 76,378,496$ 534,842,654$ 469,596,416$ The notes to the general purpose financial statements are an integral part of this statement. 29 CITY OF COLLEGE STATION, TEXAS COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES For the Fiscal Year Ended September 30, 2002 (With comparative totals for the fiscal year ended September 30, 2001) (Continued)Totals (Memorandum Only) General Special Revenue Debt Service Capital Projects 2002 2001 Revenues Taxes 19,904,565$ 2,434,117$ 7,160,962$ 0$ 29,499,644$ 27,254,701$ Licenses and Permits 870,636 0 0 0 870,636 779,159 Intergovernmental 423,126 2,139,541 0 9,761 2,572,428 3,221,851 Charges for Services 2,067,813 25,341 0 67,525 2,160,679 1,953,899 Fines, Forfeits and Penalties 2,225,354 0 0 0 2,225,354 1,798,870 Special Assessments 0 0 0 982,760 982,760 944,636 Investment Income 438,885 579,448 260,119 1,312,057 2,590,509 3,451,470 Rents and Royalties 113,724 114,668 0 0 228,392 213,832 Loan Repayments 0 9,626 0 0 9,626 9,979 Contributions 21,475 0 0 329,769 351,244 432,814 Reimbursed Expenditures 32,803 0 0 0 32,803 531,307 Other 171,298 264,524 1,013 524 437,359 549,639 Total Revenues 26,269,679 5,567,265 7,422,094 2,702,396 41,961,434 41,142,157 Expenditures Current General Government 3,279,715 202,860 0 318,675 3,801,250 2,909,436 Fiscal Services 2,153,217 5,031 0 0 2,158,248 1,889,611 Police 8,914,893 0 0 0 8,914,893 8,273,632 Fire 6,405,874 0 0 0 6,405,874 5,702,804 Development Services 1,883,224 0 0 0 1,883,224 1,887,378 Public Works 5,211,720 0 0 0 5,211,720 4,583,796 Economic and Community Development 122,074 0 0 0 122,074 41,623 Parks and Recreation 6,045,622 0 0 0 6,045,622 5,196,309 Office of Technology and Information Services 2,293,734 0 0 0 2,293,734 2,229,600 Library 734,083 0 0 0 734,083 581,768 Community Development Block Grant 0 538,901 0 0 538,901 0 Home Grant 0 626,848 0 0 626,848 0 Housing Rehabilitation 0 0 0 0 0 64,708 Optional Relocation 0 0 0 0 0 382,066 Clearance and Demolition 0 0 0 0 0 7,500 Acquisitions 0 0 0 0 0 53,188 Interim Assistance 0 0 0 0 0 1,941 Homebuyer's Assistance 0 0 0 0 0 83,561 Commercial Rehabilitation 0 0 0 0 0 8,217 Community Development Housing Organization 0 0 0 0 0 32,122 External Public Facilities 0 0 0 0 0 130,000 Reimbursed Administrative (5,823,852)1,264,296 0 1,000,000 (3,559,556)(3,538,877) Contributions 208,485 1,140,400 0 0 1,348,885 1,541,173 Other 96,564 31,739 0 55,147 183,450 577,606 Capital Outlay 150,000 1,341,625 0 11,700,964 13,192,589 9,885,474 (Continued) The notes to the general purpose financial statements are an integral part of this statement. 30 CITY OF COLLEGE STATION, TEXAS COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES For the Fiscal Year Ended September 30, 2002 (With comparative totals for the fiscal year ended September 30, 2001) (Continued)Totals (Memorandum Only) General Special Revenue Debt Service Capital Projects 2002 2001 Debt Service Principal Retirement 0 0 5,950,000 0 5,950,000 4,475,000 Interest Payments 0 0 3,425,390 0 3,425,390 3,213,770 Issuance Costs 0 12,000 0 103,500 115,500 77,244 Fiscal Charges 0 0 8,752 0 8,752 8,926 Total Expenditures 31,675,353 5,163,700 9,384,142 13,178,286 59,401,481 50,299,576 Excess (Deficiency) of Revenues Over (Under) Expenditures (5,405,674)403,565 (1,962,048)(10,475,890)(17,440,047)(9,157,419) Other Financing Sources (Uses) Proceeds from Long-Term Debt 0 2,316,800 0 17,739,400 20,056,200 7,292,870 Sale of General Fixed Assets 30,106 0 0 0 30,106 580,909 Operating Transfers In 6,534,900 120,000 753,672 1,355,678 8,764,250 14,945,966 Operating Transfer Out (480,807)(1,437,259)0 (89,000)(2,007,066)(1,550,693) Total Other Financing Sources (Uses)6,084,199 999,541 753,672 19,006,078 26,843,490 21,269,052 Excess (Deficiency) of Revenues and Other Financing Sources Over (Under) Expenditures and Other Financing Uses 678,525 1,403,106 (1,208,376)8,530,188 9,403,443 12,111,633 Fund Balances, October 1 9,432,700 14,213,500 3,563,589 29,175,641 56,385,430 44,273,797 Fund Balances, September 30 10,111,225$ 15,616,606$ 2,355,213$ 37,705,829$ 65,788,873$ 56,385,430$ (Continued) The notes to the general purpose financial statements are an integral part of this statement. 31 CITY OF COLLEGE STATION, TEXAS COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) GENERAL, SPECIAL REVENUE, DEBT SERVICE, AND CAPITAL PROJECTS FUNDS For the Fiscal Year Ended September 30, 2002 (Continued) General Fund Special Revenue Funds Budget Actual Variance Over (Under)Budget Actual Variance Over (Under) Revenues Taxes 19,670,172$ 19,918,422$ 248,250$ 2,502,419$ 2,434,117$ (68,302)$ Licenses and Permits 725,500 870,636 145,136 0 0 0 Intergovernmental 330,317 423,126 92,809 4,621,509 2,139,541 (2,481,968) Charges for Services 1,987,600 2,067,813 80,213 13,000 25,341 12,341 Fines, Forfeits and Penalties 1,690,000 2,330,648 640,648 0 0 0 Special Assessments 1,000 0 (1,000)0 0 0 Investment Income 540,400 519,327 (21,073)541,200 717,311 176,111 Rents and Royalties 74,000 113,724 39,724 116,000 114,668 (1,332) Loan Repayments 0 0 0 0 9,626 9,626 Contributions 27,000 21,475 (5,525)0 0 0 Reimbursed Expenditures 6,000 32,803 26,803 0 0 0 Other 131,000 166,268 35,268 91,000 263,850 172,850 Total Revenues 25,182,989 26,464,242 1,281,253 7,885,128 5,704,454 (2,180,674) Expenditures Current General Government 3,387,370 3,258,999 (128,371)6,200 7,746 1,546 Fiscal Services 2,101,216 2,094,637 (6,579)0 5,031 5,031 Police 8,863,571 8,774,619 (88,952)0 0 0 Fire 6,535,090 6,294,174 (240,916)0 0 0 Development Services 1,965,544 1,869,605 (95,939)267,600 201,672 (65,928) Public Works 5,379,475 5,341,650 (37,825)0 0 0 Economic and Community Development 0 31,857 31,857 0 0 0 Parks and Recreation 6,127,775 5,714,596 (413,179)1,400 518 (882) Office of Technology and Information Services 2,245,869 2,233,199 (12,670)0 0 0 Library 716,394 670,817 (45,577)0 0 0 Nondepartmental Community Development Block Grant 0 0 0 2,339,397 538,901 (1,800,496) Home Grant 0 0 0 1,623,439 626,848 (996,591) Reimbursed Admin.(5,805,123)(5,816,877)(11,754)1,333,929 1,264,296 (69,633) Contributions 207,998 331,851 123,853 1,140,400 1,140,400 0 Other 1,221,275 134,978 (1,086,297)318,127 17,125 (301,002) Capital Outlay 1,296,985 664,288 (632,697)7,292,689 1,339,064 (5,953,625) Debt Service Principal Retirement 0 0 0 270,000 0 (270,000) Interest Payments 0 0 0 0 0 0 Issuance Costs 0 0 0 0 12,000 12,000 Fiscal Charges 0 0 0 0 0 0 Total Expenditures 34,243,439 31,598,393 (2,645,046)14,593,181 5,153,601 (9,439,580) (Continued) The notes to the general purpose financial statements are an integral part of this statement. 32 Debt Service Capital Projects Funds Budget Actual Variance Over (Under)Budget Actual Variance Over (Under) 7,265,601$ 7,160,962$ (104,639)$ 0$ 0$ 0 0 0 0 0 0 0 0 0 0 272,000 (4,311)(276,311) 0 0 0 50,000 67,525 17,525 0 0 0 0 0 0 0 0 0 987,300 981,673 (5,627) 350,000 186,750 (163,250)620,000 1,618,864 998,864 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 328,389 328,389 0 0 0 0 0 0 0 111,482 111,482 0 524 524 7,615,601 7,459,194 (156,407)1,929,300 2,992,664 1,063,364 0 0 0 0 356,419 356,419 0 0 0 50,000 1,517 (48,483) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 8,360 8,360 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,000,000 1,000,000 0 0 0 0 0 0 0 0 0 0 330,000 23,950 (306,050) 0 0 0 16,525,932 11,566,807 (4,959,125) 5,880,000 5,950,000 70,000 0 0 0 3,168,263 3,425,391 257,128 0 0 0 9,000 0 (9,000)93,500 103,500 10,000 6,000 8,753 2,753 0 0 0 9,063,263 9,384,144 320,881 17,999,432 13,060,553 (4,938,879) (Continued) The notes to the general purpose financial statements are an integral part of this statement. 33 CITY OF COLLEGE STATION, TEXAS COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) GENERAL, SPECIAL REVENUE, DEBT SERVICE, AND CAPITAL PROJECTS FUNDS For the Fiscal Year Ended September 30, 2002 (Continued) General Fund Special Revenue Funds Budget Actual Variance Over (Under)Budget Actual Variance Over (Under) Excess (Deficiency) of Revenues Over (Under) Expenditures (9,060,450)(5,134,151)3,926,299 (6,708,053)550,853 7,258,906 Other Financing Sources (Uses) Proceeds from Long-Term Debt 0 0 0 2,300,000 2,316,800 16,800 Sale of General Fixed Assets 41,000 30,106 (10,894)0 0 0 Operating Transfers In 6,485,000 6,536,693 51,693 120,000 120,000 0 Operating Transfer Out (478,091)(480,190)(2,099)(868,052)(1,437,259)(569,207) Total Other Financing Sources (Uses)6,047,909 6,086,609 38,700 1,551,948 999,541 (552,407) Excess (Deficiency) of Revenues and Other Financing Sources Over (Under) Expenditures and Other Financing Uses (3,012,541)952,458 3,964,999 (5,156,105)1,550,394 6,706,499 Fund Balances, October 1 9,395,239 9,395,239 0 14,051,801 14,051,801 0 Fund Balances, September 30 6,382,698$ 10,347,697$ 3,964,999$ 8,895,696$ 15,602,195$ 6,706,499$ (Continued) The notes to the general purpose financial statements are an integral part of this statement. 34 Debt Service Capital Projects Funds Budget Actual Variance Over (Under)Budget Actual Variance Over (Under) (1,447,662)(1,924,950)(477,288)(16,070,132)(10,067,889)6,002,243 0 0 0 16,560,000 17,739,400 1,179,400 0 0 0 0 0 0 1,023,410 753,672 (269,738)721,325 1,355,678 634,353 0 0 0 0 (89,000)(89,000) 1,023,410 753,672 (269,738)17,281,325 19,006,078 1,724,753 (424,252)(1,171,278)(747,026)1,211,193 8,938,189 7,726,996 3,548,004 3,548,004 0 29,062,991 29,062,991 0 3,123,752$ 2,376,726$ (747,026)$ 30,274,184$ 38,001,180$ 7,726,996$ (Continued) The notes to the general purpose financial statements are an integral part of this statement. 35 CITY OF COLLEGE STATION, TEXAS COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS/FUND BALANCE ALL PROPRIETARY AND FIDUCIARY FUND TYPES For the Fiscal Year Ended September 30, 2002 (With comparative totals for the fiscal year ended September 30, 2001) Fiduciary Proprietary Fund Types Fund Types Enterprise Internal Service Nonexpendable Trust Operating Revenues Charges for Services 64,995,432$ 7,154,358$ 0$ Sale of Cemetery Lots 0 0 90,618 Premiums 0 4,427,725 0 Investment Income 0 0 25,289 Contributions 0 0 5,125 Other 1,904,236 160,099 0 Total Operating Revenues 66,899,668 11,742,182 121,032 Operating Expenses Electric Operations 37,679,409 0 0 Salaries and Benefits 4,404,293 2,176,030 0 Supplies 651,620 707,466 0 Maintenance 1,364,163 170,626 6,094 Purchased Professional Services 557,906 17,563 0 Purchased Property Services 2,338,067 104,523 0 Other Purchased Services 1,320,132 262,574 0 Claims 0 1,258,813 0 Administration Fees 0 134,712 0 Premiums 0 2,492,559 0 Reimbursed Administrative 2,600,846 993,495 0 Depreciation 5,076,319 2,385,808 0 Other 174,665 72,069 7,434 Total Operating Expenses 56,167,420 10,776,238 13,528 Operating Income 10,732,248 965,944 107,504 Nonoperating Revenues (Expenses) Investment Income 1,932,675 280,509 0 Reimbursed Expenses 96,376 162,562 0 Grants 0 0 0 Earnings in Joint Venture 842,323 0 0 Interest Expense (3,989,558)0 0 Other, Net 3,134,806 7,504 0 Total Nonoperating Revenues (Expenses)2,016,622 450,575 0 Income Before Operating Transfers 12,748,870 1,416,519 107,504 Operating Transfers Operating Transfers In 1,241 1,475 0 Operating Transfers Out (6,759,900)0 0 Total Operating Transfers (6,758,659)1,475 0 Net Income (Loss)5,990,211 1,417,994 107,504 Retained Earnings (Restated)/Fund Balance, October 1 90,607,924 12,069,438 635,563 Retained Earnings/Fund Balance, September 30 96,598,135$ 13,487,432$ 743,067$ The notes to the general purpose financial statements are an integral part of this statement. 36 Totals (Memorandum Only) 2002 2001 72,149,790$ 68,015,784$ 90,618 84,523 4,427,725 3,663,439 25,289 36,344 5,125 16,135 2,064,335 1,957,893 78,762,882 73,774,118 37,679,409 37,038,395 6,580,323 5,871,424 1,359,086 1,213,738 1,540,883 1,212,902 575,469 516,352 2,442,590 2,491,842 1,582,706 1,566,835 1,258,813 3,286,950 134,712 179,403 2,492,559 588,445 3,594,341 3,809,373 7,462,127 5,875,061 254,168 371,111 66,957,186 64,021,831 11,805,696 9,752,287 2,213,184 3,537,395 258,938 157,059 0 14,800 842,323 664,692 (3,989,558)(2,402,956) 3,142,310 622,812 2,467,197 2,593,802 14,272,893 12,346,089 2,716 995,200 (6,759,900)(14,390,473) (6,757,184)(13,395,273) 7,515,709 (1,049,184) 103,312,925 104,362,109 110,828,634$ 103,312,925$ The notes to the general purpose financial statements are an integral part of this statement. 37 CITY OF COLLEGE STATION, TEXAS COMBINED STATEMENT OF CASH FLOWS ALL PROPRIETARY AND FIDUCIARY FUND TYPES For the Fiscal Year Ended September 30, 2002 (With comparative totals for the fiscal year ended September 30, 2001) (Continued)Totals Internal Nonexpendable (Memorandum Only) Enterprise Service Trust 2002 2001 Cash Flows from Operating Activities: Cash Received from Customers 65,959,669$ 11,741,352$ 104,001$ 77,805,022$ 73,424,857$ Cash Payments to Suppliers for Goods and Services (43,924,633)(5,881,505)(13,540)(49,819,678)(49,666,915) Cash Payments to Employees for Services (6,434,882)(2,159,701)0 (8,594,583)(8,031,278) Customer Deposits Received 1,475 0 0 1,475 228,240 Customer Deposits Returned (179,251)0 0 (179,251)(825,381) Cash Received from Contributions 0 0 5,125 5,125 16,135 Cash Received for Reimbursed Expenses 96,376 125,674 0 222,050 157,059 Cash Received from Sale of Scrap 0 0 0 0 16,024 Cash Received from Collection Fees 0 0 0 0 8,653 Cash Received from Grants 0 0 0 0 14,800 Cash Received for Miscellaneous Revenues 285,581 21,407 0 306,988 193,887 Cash Received From Other Funds 0 79,262 0 79,262 43,835 Cash Paid to Other Funds 0 (35,760)0 (35,760)(43,835) Cash Paid for Miscellaneous Expenses (30,079)(57,698)0 (87,777)(69,157) Net Cash Provided by Operating Activities 15,774,256 3,833,031 95,586 19,702,873 15,466,924 Cash Flows from Noncapital Financing Activities: Operating Transfers In from Other Funds 1,241 1,475 0 2,716 882,800 Operating Transfers Out to Other Funds (6,759,900)0 0 (6,759,900)(14,278,073) Cash Paid to Other Funds 0 0 0 0 (200,000) Cash Paid to Public Agencies (261,951)0 0 (261,951)(283,967) Net Cash Provided (Used) by Noncapital Financing Activities (7,020,610)1,475 0 (7,019,135)(13,879,240) Cash Flows from Capital and Related Financing Activities: Acquisition and Construction of Capital Assets (23,079,205)(2,025,537)0 (25,104,742)(26,315,664) Proceeds from Sale of Assets 0 3,647 0 3,647 872,308 Capital Contributed by Developers 0 0 0 0 93,464 Principal Paid on Revenue Bonds (3,165,000)868,800 0 (2,296,200)(3,185,000) Interest Paid on Revenue Bonds (3,623,814)0 0 (3,623,814)(2,521,280) Fees Paid to Fiscal Agent (3,121)0 0 (3,121)(9,660) Proceeds from Revenue Bonds 18,115,000 0 0 18,115,000 23,997,130 Issuance Costs Paid on Revenue Bonds (99,682)0 0 (99,682)0 Cash Received from Other Funds 0 0 0 0 (101,475) Net Cash Used by Capital and Related Financing Activities (11,855,822)(1,153,090)0 (13,008,912)(7,170,177) Cash Flows from Investing Activities: Purchase of Investments (33,626,285)$ (6,313,073)$ (517,684)$ (40,457,042)$ (28,968,253)$ Proceeds from Sale and Maturities of Investment Securities 36,936,541 5,278,695 496,358 42,711,594 35,629,067 Investment Income 2,190,528 299,962 28,257 2,518,747 3,774,464 Net Cash Provided by Investing Activities:5,500,784 (734,416)6,931 4,773,299 10,435,278 Net Increase in Cash and Cash Equivalents 2,398,608 1,947,000 102,517 4,448,125 4,852,785 Cash and Cash Equivalents, October 1 24,321,069 2,768,260 295,929 27,385,258 22,532,473 Cash and Cash Equivalents, September 30 26,719,677 4,715,260 398,446 31,833,383 27,385,258 (Continued) The notes to the general purpose financial statements are an integral part of this statement. 38 CITY OF COLLEGE STATION, TEXAS COMBINED STATEMENT OF CASH FLOWS ALL PROPRIETARY AND FIDUCIARY FUND TYPES For the Fiscal Year Ended September 30, 2002 (With comparative totals for the fiscal year ended September 30, 2001) (Continued)Totals Internal Nonexpendable (Memorandum Only) Enterprise Service Trust 2002 2001 Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Operating Income (Loss)10,732,248 965,944 107,504 11,805,696 9,844,515 Adjustment to Reconcile Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Depreciation 5,076,319 2,385,808 0 7,462,127 5,521,300 Provision for Uncollectable Accounts 74,513 0 0 74,513 0 Investment Income Reported as Operating Income 0 0 (25,289)(25,289)(36,344) Miscellaneous Nonoperating Revenues 381,963 152,047 0 534,010 475,472 Miscellaneous Nonoperating Expenses (30,079)(13,512)0 (43,591)(119,592) Change in Assets and Liabilities: Change in Accounts Receivable (950,970)27,829 14,062 (909,079)(292,272) Change in Other Receivables 10,971 0 0 10,971 10,909 Change in Due From Other Funds 0 71,679 0 71,679 (33,708) Change in Inventory 483,482 109,111 0 592,593 (47,379) Change in Prepaid Costs 0 (27,865)0 (27,865)(759) Change in Accounts Payable 96,341 436,131 (691)531,781 865,736 Change in Due to Other Funds 0 (28,177)0 (28,177)33,708 Change in Claims Payable 0 (261,180)0 (261,180)(288,376) Change in Accrued Liabilities 50,329 13,559 0 63,888 112,772 Change in Deferred Revenue 0 0 0 0 3,696 Change in Refundable Deposits (177,776)0 0 (177,776)(596,667) Change in Accrued Vacation 26,915 1,657 0 28,572 13,913 Total Adjustments 5,042,008 2,867,087 (11,918)7,897,177 5,622,409 Net Cash Provided by Operating Activities 15,774,256$ 3,833,031$ 95,586$ 19,702,873$ 15,466,924$ Noncash Operating Financing, Capital and Investing Activities: During the Fiscal year the Enterprise Fund Added contributed capital in the amount of $3,265,782. Adjustments at 9/30/02 to investments to record income accrual and fair value changes were as follows: Enterprise Fund ($257,853); Internal Service Funds, $19,453; and Nonexpendable Trust Funds, $2,968. In addition, billed customer refundable deposits in the amount of $562 were reflected in the Enterprise Funds 9/30/02 Accounts Receivable and Refundable Deposit Balances. (Continued) The notes to the general purpose financial statements are an integral part of this statement. 39 CITY OF COLLEGE STATION, TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 41 I.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The general purpose financial statements of the City of College Station, Texas ("City"), have been prepared in conformity with generally accepted accounting principles ("GAAP") as applied to governmental units. The Governmental 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.REPORTING ENTITY The financial reporting entity is defined as (1) the primary government and (2) those component units for which the primary government is financially accountable. A primary government is financially accountable for the organizations that make up its legal entity. It is also financially accountable for legally separate organizations if its officials appoint a voting majority of an organization's governing body and one or both of the following conditions are met: (a) the primary government is able to impose its will on the component unit or (b) the primary government's relationship with the component unit poses a real or potential financial benefit or burden for the primary government. Moreover, financial accountability is also deemed to exist even in the absence of simple "accountability" (i.e., the appointment of a voting majority of the organization's governing body) if the component unit is financially dependent upon the primary government. A primary government has the ability to impose its will on an organization if it can significantly influence the programs, projects, or activities of, or level of services performed or provided by, the organization. A financial benefit or burden relationship exists if the primary government is: (a) entitled to the organization's resources; (b) legally obligated or has otherwise assumed the obligation to finance the deficits of, or provide financial support to, the organization; or (c) obligated in some manner for the debt of the organization. If an organization is unable to adopt its budget, levy taxes, or set rates or charges, or issue bonded debt without approval by the primary government, then it is deemed to be fiscally dependent on the primary government and is included as a component unit. There are no entities that meet the criteria as a component unit of the City. Included within the reporting entity as a joint venture for the City is the Brazos Valley Solid Waste Management Agency. The Brazos Valley Solid Waste Management Agency ("BVSWMA") was created May 8, 1990, by the Cities of Bryan and College Station, Texas, to achieve economies of scale savings for the participants through joint ownership and use of regional waste management facilities. BVSWMA is governed by an Administrative Board of Trustees ("Board") comprised of the City Manager and a staff person from each city. In addition, the Mayors of each city serve alternating two-year terms on the Board, which has complete responsibility for the daily operating activities of BVSWMA. The BVSWMA annual budget is first approved by the BVSWMA Board and is then submitted for approval by both cities as a part of their regular budget process. CITY OF COLLEGE STATION, TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 42 I.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) B.MEASUREMENT FOCUS, BASIS OF ACCOUNTING AND BASIS OF PRESENTATION The accounts of the City are organized and operated on the basis of funds and account groups. A fund is an independent fiscal and accounting entity with a self-balancing set of accounts. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minimum number of funds are maintained consistent with legal and managerial requirements. Account groups are a reporting device to account for certain assets and liabilities of the governmental funds not recorded directly in those funds. The City has the following fund types and account groups: Governmental funds are used to account for the City’s general government activities. Governmental fund types use the flow of current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they are “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 pay liabilities of the current period. Expenditures are recorded when the related fund liability is incurred, except for unmatured interest on general long-term debt which is recognized when due, and certain compensated absences and claims and judgements such as accrued vacation leave which are recognized when the obligations are expected to be liquidated with expendable available financial resources. Property taxes, franchise taxes, licenses, interest, charges for services and special assessments are susceptible to accrual. Sales taxes collected and held by the State at year end on behalf of the City are also recognized as revenue. Other receipts and taxes become measurable and available when cash is received by the City and are recognized as revenue at the time. Entitlement and shared revenues are recorded at the time of receipt or earlier if the accrual criteria are met. Expenditure-driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other grant requirements have been met. Governmental funds include the following fund types: The general fund is the City’s primary operating fund. It accounts for all financial resources of general government, except those required to be accounted for in another fund. The special revenue funds account for revenue sources that are legally restricted to expenditure for specific purposes (not including expendable trusts or major capital projects). The debt service fund accounts for the servicing of general long-term debt not being financed by proprietary or nonexpendable trust funds. The capital projects funds account for the acquisition of fixed assets or construction of major capital projects not being financed by proprietary or nonexpendable trust funds. CITY OF COLLEGE STATION, TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 43 I.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) B. MEASUREMENT FOCUS, BASIS OF ACCOUNTING AND BASIS OF PRESENTATION (Continued) Proprietary funds are accounted for on the flow of economic resources measurement focus and use the accrual basis of accounting. Under this method, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. The City applies all applicable GASB pronouncements in accounting and reporting for its proprietary operations and all Financial Accounting Standards Board (“FASB”) Statements and interpretations issued after November 30, 1989, except for those that conflict or contradict GASB pronouncements. Proprietary funds include the following fund types: Enterprise funds are used to account for those operations that are financed and operated in a manner similar to private business or where the City has decided that the determination of revenues earned, costs incurred and/or net income is necessary for management accountability. Internal service funds account for operations that provide services to other departments or agencies of the City on a cost-reimbursement basis. Fiduciary funds account for assets held by the City in a trustee capacity or as an agent on behalf of others. Nonexpendable trust funds are used to account for assets of which principal may not be spent and are accounted for using the same measurement focus and basis of accounting used by the proprietary funds. Account Groups. The general fixed assets account group is used to account for fixed assets not accounted for in proprietary or trust funds. The general long-term debt account group is used to account for general long-term debt and certain other liabilities that are not specific liabilities of proprietary or trust funds. C.ASSETS, LIABILITIES AND EQUITY 1.Cash and Cash Equivalents Cash and cash equivalents are short term highly liquid investments that are: (a) readily convertible to known amounts of cash and (b) so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Therefore, for purposes of the statement of cash flows, cash and cash equivalents (including restricted assets) include demand accounts, repurchase agreements, and government securities and agency notes with original maturities of three months or less when purchased. All cash, except for petty cash accounts, is deposited with the City's depository bank (First American Bank, Bryan, Texas) in interest bearing accounts or is invested. CITY OF COLLEGE STATION, TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 44 I.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C.ASSETS, LIABILITIES AND EQUITY (Continued) 1. Cash and Cash Equivalents (Continued) The City uses a pooling method to account for cash and cash equivalents. Equity in cash and cash equivalents and interest income from the cash pool is allocated to the participating funds on a monthly basis. The amount of the allocation is determined by calculating a ratio of each fund's equity in the pool to the total pool. 2.Investments Investments are made in accordance with the City's Investment Policy which was adopted by the City Council in March 2002. This policy is applicable to all City funds and permits investment in obligations of the U.S. Government or its agencies, repurchase agreements, commercial paper, certificates of deposit, guaranteed investment contracts, public funds investment pools, and money market mutual funds. This policy states that the Director of Fiscal Services shall designate the City’s Investment Officer with whom responsibility and authority for investment transactions reside. The investments purchased under the provisions of the Investment Policy are managed to maintain liquidity for meeting the City's needs for cash and to limit potential market risks in periods of rising interest rates which depress the market value of securities. As a guideline, maturity of securities should not exceed five years for cash management purposes, with an optimum weighted average maturity of less than two years. Investments in securities of a longer maturity than two years are considered prudent for funds maintained for capital construction and debt service funds, if necessary to meet projected disbursement schedules. As a general guideline, the City’s cash management portfolio is designed with the objective of meeting, over the course of full market cycles, the average return on three-month U.S. Treasury Bills, or the average rate of federal funds, whichever is higher. These indices are considered benchmarks for riskless investment transactions and therefore comprise a standard for the portfolio's rate of return. The investment program seeks to augment rates of return above this level. In a diversified portfolio, measured losses are inevitable and must be considered within the context of the overall portfolio. The objective in investment of construction funds is at least to match inflation increases in construction costs. Active portfolio management includes the practice of selling securities prior to maturity and using the proceeds to purchase other securities. Such "swaps" are performed for a variety of valid reasons: to lengthen maturities as interest rates rise, to secure market profits and shorten maturities as interest rates fall, and to take advantage of the differences in relative yield between different types of securities and varying maturities. "Swap" analysis is the responsibility of the City Investment Officer and the decision to execute the "swap" rests with him. To protect the portfolio from imprudent trading, no security may be sold until such time as the current market value of the security plus interest earned from date of purchase is at least equal to the purchase price of that security. State statutes authorize the City to invest in fully-insured time deposits, direct debt securities of the United States or its agencies, and fully collateralized repurchase agreements. The repurchase agreements must be purchased pursuant to a master repurchase agreement which specifies that the transaction be held in a safekeeping account subject to the control and custody of the City. CITY OF COLLEGE STATION, TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 45 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. ASSETS, LIABILITIES AND EQUITY (Continued) 2. Investments (Continued) Investments in security repurchase agreements may be made only with the City's depository bank, with state or national banks domiciled in the state of Texas, or with securities dealers reporting to the Federal Reserve Bank of New York ("Primary I. Dealers"). All securities are purchased delivery -vs.-payment and held in the City's name in a safekeeping account at Chase Bank. Investments of all funds consist mainly of U. S. Treasury and Agency securities, flexible repurchase agreements, and investments in public funds investment pools (TexPool). Investments are stated at fair value in accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools. The City also uses a pooling method to account for investments. Equity in investments and interest income from the investment pool is allocated to the participating funds on a monthly basis and is determined by calculating a ratio of each fund's equity in the investment pool to the total pool. 3.Inventory Inventory is valued at cost, which approximates market, using the first-in, first -out method. The costs of governmental fund type and proprietary fund inventories are recorded as expenditures/expenses when consumed rather than when purchased. 4.Prepaid Costs Payments made to vendors for services that will benefit periods beyond September 30, 2002, are recorded as prepaid costs. 5.Restricted Assets In the Enterprise Funds, proceeds of utility revenue bonds, as well as resources set aside for their repayment, are classified as restricted assets on the balance sheet because their use is limited by applicable bond covenants. In addition, customer utility deposits are classified as restricted assets because the deposit remains the property of the customer and is not available for operations. In the General Fund, restricted assets are comprised of Municipal Court cash bonds, and police seizure funds, all of which are not available for operations. 6.Investment in Joint Venture The Proprietary Funds' investment in joint venture is recorded using the equity method of accounting. Required disclosures concerning the joint venture are presented in Note IV-D. CITY OF COLLEGE STATION, TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 46 I.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. ASSETS, LIABILITIES AND EQUITY (Continued) 7.Fixed Assets General fixed assets have been acquired for general government purposes. Asset purchases are recorded as expenditures in the governmental fund types and capitalized in the General Fixed Assets Account Group 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. Public domain fixed assets consisting of improvements other than buildings are also included in the General Fixed Assets Account Group. No depreciation has been provided on general fixed assets, nor has interest been capitalized. Property and equipment owned by the Enterprise Funds and the Internal Service Funds is stated at the historical cost of acquisition, construction or, with respect to contributions of construction from third parties (principally developers), at fair market value. In accordance with Financial Accounting Standards Board Statement No. 71, interest is not capitalized during construction because interest is recovered currently in the City's established rate. Maintenance, repairs and minor renewals are charged to operating expense; major property replacements are capitalized. Depreciation is recorded in the above funds on a straight -line basis over the following estimated service lives: Utility Systems 25 - 40 years Buildings and Improvements 5 - 50 years Equipment 3 - 10 years 8.Compensated Absences Employees are credited with vacation at rates of 10 to 20 days per year, depending up on length of service. Carryover of unused vacation time from one year to the next is allowed for a maximum of two years. Upon termination, the respective employees are paid for any accrued vacation not taken (up to the two-year maximum). Accumulated vac ation leave that is expected to be liquidated with expendable available financial resources is reported as an expenditure and a liability of the General Fund. Amounts of 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. Employees are credited with sick leave at the rate of one day per month. There is no maximum to the number of sick days that each employee can accumulate. Payment for unused accumulated sick leave is not made to employees by the City and, accordingly, no liability has been recorded in the financial statements. CITY OF COLLEGE STATION, TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 47 I.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. ASSETS, LIABILITIES AND EQUITY (Continued) 9.Long-Term Obligations 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 portions of such obligations are reported in the General Long-Term Debt Account Group. Long-term liabilities directly related to and financed from proprietary fund operations are accounted for in those funds. All other unmatured long-term indebtedness of the City is accounted for in the General Long-Term Debt Account Group. 10.Encumbrances Encumbrance accounting, under which purchase orders, contracts and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of formal budgetary integration in the governmental fund types. Encumbrances outstanding at year end are reported as reservations of fund balances since they do not constitute expenditures or liabilities in the general purpose financial statements. 11.Fund Equity Contributed capital is recorded in proprietary funds that have received capital grants or contributions from developers, customers or other funds. Reserved balances represent those portions of fund equity not appropriable for expenditure or legally segregated for a specific future use. Designated fund balances represent tentative plans for future use of financial resources. 12.Bond Discounts/Issuance Costs In governmental fund types, bond discounts and issuance costs are recognized as expenditures 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 straight -line method. Bond discounts are presented as a reduction of the face amount of bonds payable, and issuance costs are recorded as deferred charges. 13.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 that fund, which 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. Interfund transactions other than quasi-external transactions and reimbursements are reported as operating transfers. CITY OF COLLEGE STATION, TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 48 I.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C.ASSETS, LIABILITIES AND EQUITY (Continued) 14.Statements of Cash Flows The City has elected to use the direct method in presenting the Statements of Cash Flows for each of the Proprietary Fund types and Non-Expendable Trust Fund. 15.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 does not present financial position, results of operations, or cash flows in conformity with generally accepted accounting principles. Neither is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. 16.Comparative Data/Reclassifications 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 City's financial position and operations. However, comparative data have not been presented in all statements because their inclusion would make certain statements unduly complex and difficult to understand. Also, certain amounts presented in the prior year data have been reclassified in order to be consistent with the current year's presentation. II.STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY A.BUDGETARY INFORMATION The City follows these procedures in establishing the budgetary data reflected in the financial statements: 1)Prior to September 1, the City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following October 1. The operating budget includes proposed expenditures and the means of financing them. 2)All budget requests are compiled by the Office of Management and Budget and presented with comparative and supporting data to the Mayor and City Council for review. 3)Public hearings are properly advertised and conducted at City Hall for taxpayer comments. 4)Prior to September 27, the budget is legally enacted through passage of an ordinance. 5)The City Council must approve all transfers of budgeted amounts between departments within any fund and any revision that alters the total expenditure of any fund. An amount is also budgeted each year for contingencies which may arise. The Council has authorized the City Manager to make budget transfers for contingencies if the amount does not exceed $50,000. All other transfers must be approved by City Council. City Council may transfer amounts among individual budget line items within major expenditure categories during the year, but no such transfer may increase the overall total budget. Budgeted amounts as originally adopted were not significantly changed by such transfers during the year. CITY OF COLLEGE STATION, TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 49 II. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (Continued) A. BUDGETARY INFORMATION (Continued) 6) In accordance with the City Charter, the budget may be amended after the following conditions are met: a) The City Manager certifies that there are available revenues in excess of those estimated in the budget. b) The City Council holds a public hearing on the supplemental appropriation. c) The City Council approves the supplemental appropriation. Management may not amend the budget without seeking the approval of the City Council. 7)Budget appropriations are adopted at the fund level for all funds except the General Fund. In the General Fund, budget appropriations are adopted at the department level. Expenditures in excess of appropriations for each fund are prohibited by the City Charter. Appropriations which have not been expended or lawfully encumbered lapse at the end of the budget year. 8)Formal budgetary integration is legally enacted and employed as a management control device during the year for all funds. B.BUDGET/GAAP RECONCILIATION General Fund budgetary amounts do not include provisions for adjustments in inventory, the allowance for uncollectible accounts receivable, the capitalization of salaries for capital improvements projects, accrued vacation, accrued payroll or adjustments to fair value for investments. Adjustments necessary to convert the General Fund revenues and other financing sources at September 30, 2002 on the budgetary basis to the GAAP basis are as follows: Revenues and Other Financing Sources - Budget (Non-GAAP Basis)$33,031,041 Reconciling Items:20,245,143 Adjust Investments to Fair Value 9,373 Inventory Adjustment 5,030 Reverse FY01 Investment Earnings Accrual (89,815) Municipal Court Bond Adjustment (105,294) Accrue Sales Tax (13,857) Reclass (1,793) Total Reconciling Items (196,356) Total Revenues and Other Financing Sources - GAAP Basis $32,834,685 CITY OF COLLEGE STATION, TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 50 II. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (Continued) B.BUDGET/GAAP RECONCILIATION (Continued) Adjustments necessary to convert the General Fund expenditures and other financing uses at September 30, 2002 on the budgetary basis to the GAAP basis are as follows: Expenditures and Other Financing Uses - Budget (Non-GAAP Basis)$32,078,583 Reconciling Items:18,923,083 Capitalized Salaries (140,319) Bad Debt 20,030 Accrue Payroll Expense FY02 644,780 Reverse FY01 Payroll Accrual (459,780) Adjust Accrued Vacation 13,909 Reclass (1,793) Other 750 Total Reconciling Items 77,577 Total Expenditures and Other Financing Uses - GAAP Basis $32,156,160 The budgets for the Special Revenue Funds and Capital Projects Funds are adopted on a basis consistent with GAAP, except for the following significant items: a) Principal payments are included in the budget as an expenditure item. b) Budgetary amounts do not include provisions for adjustments in the allowance for uncollectible accounts receivable. c) Budgeted expenditure amounts do not include a provision for the capitalization of salaries for capital improvement projects. d) Budgeted revenue amounts do not include a provision for adjusting investments to fair value. e) Budgeted revenue amounts do not include utility revenues earned but not billed. CITY OF COLLEGE STATION, TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 51 II. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (Continued) B. BUDGET/GAAP RECONCILIATION (Continued) Adjustments necessary to convert the Special Revenue Funds and Capital Projects Funds revenues and other financing sources at September 30, 2002 on the budgetary basis to the GAAP basis are as follows: Special Revenue Funds Capital Projects Funds Revenues and Other Financing Sources - Budget (Non GAAP Basis)$8,141,254 $22,087,742 Reconciling Items:18,923,083 Adjust Investments to Fair Value 12,164 31,669 Accrue FY02 Utility Revenue 0 40,501 Reverse FY01 Utility Accrual 0 (39,415) Reverse FY01 Investment Accrual (150,031)(324,450) Reclass 0 15,452 Other 678 (14,025) Total Reconciling Items (137,189)(290,268) Revenues and Other Financing Sources - GAAP Basis $8,004,065 $21,797,474 Adjustments necessary to convert the Special Revenue Funds and Capital Projects Funds expenditures and other financing uses at September 30, 2002 on the budgetary basis to the GAAP basis are as follows: Special Revenue Funds Capital Projects Funds Expenditures and Other Financing Uses- Budget (Non-GAAP Basis)$6,590,860 $13,149,553 Reconciling Items: FY02 Bad Debt 0 7,244 Capitalized Salaries 10,093 134,157 Reclass FY02 Expenditure 0 (23,671) Other 6 3 Total Reconciling Items 10,099 117,733 Expenditures and Other Financing Uses - GAAP Basis $6,600,959 $13,267,286 CITY OF COLLEGE STATION, TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 52 II. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (Continued) B. BUDGET/GAAP RECONCILIATION (Continued) The Budget for the Debt Service Fund is adopted on a basis consistent with GAAP except for budgeted revenue amounts which do not include a provision for investment accrual or adjusting investments to fair value. For fiscal year 2002, these amounts combined were a negative $37,100. Budgets for the Enterprise Funds are adopted on a basis consistent with GAAP, except for the following significant items: a) Capital outlay is included in the budget as an expense item. b) The budget treats principal payments for General Obligation Bonds and Certificates of Obligation serviced by the Electric, Water, and Sewer Funds and for Utility Revenue Bonds as an expense item. Principal payments for Advances from Other Funds in the Solid Waste Collection Fund are also treated as expense items in the budget. c) Enterprise Funds budgetary amounts do not include provisions for adjustments in inventory or the allowance for uncollectible accounts receivable. d) Budgeted revenue amounts do not include a provision for revenue accruals. e) Budgeted expense amounts do not include a provision for depreciation expense. f) Budgeted salaries do not include a provision for accrued vacation or accrued payroll. g) Budgeted revenue amounts do not include a provision for adjusting investments to fair value. The budgets for the Internal Service Funds are adopted on a basis consistent with GAAP, except for the following significant items: a) Capital outlay is included in the budget as an expense item. b) Budgeted salaries do not include a provision for accrued vacation, claims payable, or accrued payroll. c) Budgetary amounts do not include provisions for adjustments in inventory or the allowance for uncollectible accounts receivable. d) Budgeted expense amounts do not include a provision for depreciation expense. e) Budgeted revenue amounts do not include a provision for adjusting investments to fair value. In fiscal year 2002, budgets for the Cedar Creek Condominium and the Cemetery Perpetual Care were not adopted. Budgetary comparisons presented in the report are on the aforementioned budgetary basis. CITY OF COLLEGE STATION, TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 53 II. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (Continued) B. BUDGET/GAAP RECONCILIATION (Continued) Budgetary amounts are as originally adopted, or as amended by the City Council. Individual amendments were not material in relation to the original appropriations which were amended. C.EXPENDITURES/EXPENSES IN EXCESS OF APPROPRIATIONS The amounts of any excesses of expenditures/expenses over appropriations during fiscal year 2002, and the funds in which they occurred are as follows: Fund Amount Debt Service $320,881 Parks Projects 2,711,091 Electric 144,725 Fleet Maintenance 42,611 Print/Mail 46,553 Property and Casualty 93,994 Unbudgeted interest expense on both the 2002 GO and CO led to the $320,881 excess in the Debt Service Fund. Capital outlay related to the Veterans Park & Athletic Complex generated the $2,711,091 excess in the Parks Projects Fund, and higher than expected operating expenses generated the $144,725 excess in the Electric Fund. Higher than expected expenses for Supplies resulted in the $42,611 excess in the Fleet Maintenance Fund, and the $46,553 excess in the Print/Mail Services Fund is a result of higher than expected salaries and benefits, supplies and capital outlay expenditures. In the Property and Casualty Fund, higher than expected expenses for claims, administration fees and premiums resulted in the $93,994 excess. D.DEFICIT RETAINED EARNINGS The Communication Services Fund and the Fleet Maintenance Fund ended the fiscal year with an Unreserved Retained Earnings deficit. The $621,366 deficit in the Communication Services Fund is primarily due to unbudgeted depreciation expense, and the $159,236 deficit in the Fleet Maintenance Fund is due to unbudgeted depreciation and interest expenses. CITY OF COLLEGE STATION, TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 54 III. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS A.DEPOSITS AND INVESTMENTS At year-end, the carrying amount of the City's cash and time deposits was $68,398,980 and the bank balance was $1,503,297. Cash and time deposits included investments in the state investment pool amounting to $35,494,843, in a Fidelity money market mutual fund amounting to $9,090,204 and in a flexible repurchase agreement with a balance totaling $22,310,636. Balance sheet amounts for unrestricted and restricted cash and cash equivalents at September 30, 2002, are as follows: Unrestricted Cash and Cash Equivalents $ 56,342,897 Restricted Cash and Cash Equivalents 12,056,083 Total Cash and Cash Equivalents $ 68,398,980 The bank balance was entirely covered by federal depository insurance or by pledged collateral held by the City's third-party cus todian in the City's name. The state investment pool represents short term investments in a pool managed by another government for which risk categorization is not appropriate because the City's investment is not evidenced by securities that exist in physical or book entry form. The City's investments at September 30, 2002, are categorized below to give an indication of the level of risk assumed by the City at year end. The carrying amount is at fair value. U.S. Treasury Securities $ 1,819,018 U.S. Government Agencies and Instrumentalities Securities 56,006,455 Total Direct Investments 57,825,473 Investment in Texas Local Government Investment Pool 35,494,843 Investment in Fidelity Money Market Mutual Fund 9,090,204 Investment in Flexible Repurchase Agreement 22,310,636 Total Indirect Investments 66,895,683 Total Investments $ 124,721,156 While cas h and cash equivalents are inclusive of investments with original maturities of three months or less, the above schedules are inclusive of all investments. The City invests the long-term portion of its portfolio in various U.S. Government and agency securities that offer higher yields but are sensitive to changes in interest rates and other market conditions. Timely payment of interest and principal are guaranteed directly or indirectly by the U.S. Government. If it becomes necessary for the City to sell a portion or all of the long-term portfolio, the proceeds realized by the City from such a sale would depend on the market conditions in existence at the time of such sale, as the fair value of the securities in the City's long-term portfolio will fluctuate due to interest rate trends and other market factors. CITY OF COLLEGE STATION, TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 55 III. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) A. DEPOSITS AND INVESTMENTS (Continued) "Texpool" is a local government investment pool created and managed by the Texas Comptroller of Public Accounts to invest funds on behalf of Texas political subdivisions. This pool and the Fidelity Money Market Mutual Fund operate on a $1.00 net asset value basis and allow same day or next day redemptions and deposits. Interest on both is allocated daily based on portfolio earnings and participant account balances. The City's investments in Texpool and the Fidelity Money Market Mutual Fund are stated at fair value which was 100% of the book values as of September 30, 2002. Neither the Texpool account nor the Fidelity Money Market Mutual Fund account are managed by the City; therefore, the City does not possess securities that exist in physical or book entry form. Consequently, these securities have not been classified. All of the City's investments consist of U.S. Government Securities and repurchase agreements of U.S. Government Securities and are held by its agent in the City's name (Category One credit risk). The reporting of investments at fair value resulted in an unrealized gain of $113,693 at September 30, 2002. This unrealized gain was allocated to the participating funds by calculating a ratio of each fund’s equity in the investment pool to the total pool. B.NOTES RECEIVABLE Special Revenue Funds : In 1988, the City initiated a Community Development Loan Program which provides loans to eligible applicants from Community Development Block Grant funds. The $85,393 balance in the Special Revenue Funds represents the outstanding principal for these loans at September 30, 2002. CITY OF COLLEGE STATION, TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 56 III. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) C.FIXED ASSETS A summary of changes in general fixed assets for the year ended September 30, 2002, is as follows: Beginning Balance Additions and Transfers In Retirements And Transfers Out Ending Balance Land $ 18,240,824 $0 $0 $18,240,824 Buildings and BuildingImprovements 19,259,899 20,303 0 19,280,202 Improvements 52,287,484 5,842,067 0 58,129,551 Machinery, Tools andEquipment 11,588,981 523,091 152,738 11,959,334 Parks System 14,321,778 421,291 0 14,743,069 Construction inProgress 7,975,585 13,246,439 3,221,809 18,000,215 Total $ 123,674,551 $20,053,191 $ 3,374,547 $140,353,195 A summary of proprietary fund type property and equipment at September 30, 2002, is as follows: EnterpriseFunds InternalService Funds Total Electric System $ 63,286,640 $0 $ 63,286,640 Water System 54,503,955 0 54,503,955 Sewer System 53,951,532 0 53,951,532 Machinery & Equipment 3,954,605 19,556,725 23,511,330 Buildings & Improvements 7,330,401 746,575 8,076,976 Land 1,789,828 0 1,789,828 Construction in Progress 28,078,744 0 28,078,744 Total 212,895,705 20,303,300 233,199,005 Less Accumulated Depreciation (52,105,593)(10,791,966) (62,897,559) Net $ 160,790,112 $ 9,511,334 $170,301,446 D.INTERFUND ASSETS/LIABILITIES 1.Due To/Due From Other Funds The composition of due to/due from balances as of September 30, 2002, is as follows: Due To Due From Amount Equipment Replacement Fleet Maintenance $ 51,419 Equipment Replacement Communication Services 18,085 CITY OF COLLEGE STATION, TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 57 III. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) E.DEFERRED CHARGES Deferred charges totaling $762,602 at September 30, 2002, consist of the following: Prepaid Water Costs On November 8, 1978, the City entered into an agreement with Texas A&M University whereby the City would construct water system improvements for Texas A&M University. This water system was to provide the City with an additional water source until its own system could be constructed beginning in January 1979. The original agreement was for a period not to exceed five years. However, an addendum to the contract extends the period indefinitely. The costs of the system are being repaid by Texas A&M University at a rate of $0.20 per 1,000 gallons of City water usage. Termination of the agreements provides for absolute title to the system to be conveyed to Texas A&M University by the City. A summary of the unrecovered cost of the water system at September 30, 2002, is as follows: Total Project Cost $ 1,167,075 Less Accumulated Water Usage Credits (1,037,952) Prepaid Water Costs, September 30, 2002 $ 129,123 Bond Issuance Costs A summary of the bond issuance costs along with the accumulated amortization for the Electric, Water, and Sewer Funds as of September 30, 2002, is as follows: Electric Water Sewer Total Bond Issuance Costs $240,272 $262,472 $436,631 $939,375 Accumulated Amortization (90,400)(69,506)(145,990)(305,896) Bond Issuance Costs, Net $149,872 $192,966 $290,641 $633,479 F. LONG-TERM DEBT General Obligation Bonds The City issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds are direct obligations and pledge the full faith and credit of the City, and such bonds have been issued for both general government and proprietary activities. Bonds issued for proprietary activities are reported in the proprietary funds if they are expected to be repaid from proprietary fund revenues. CITY OF COLLEGE STATION, TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 58 III. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) F. LONG-TERM DE BT (Continued) On April 11, 2002 the City issued $6.445 million in General Obligation Bonds with a true interest cost of 4.93% percent. The proceeds from the sale of the bonds will be used for street projects, traffic management projects, park projects, drainage projects, land acquisition, fire station improvements and to pay the costs incurred in connection with the issuance of the bonds. Revenue Bonds The City from time to time also issues bonds for which the City pledges income derived from the acquired or constructed assets to pay debt service. On April 11, 2002 the City issued $18.215 million in utility revenue bonds with a true interest cost of 5.01% percent. Proceeds from the sale of the bonds will be used for electric, water and wastewater system improvements. In addition, proceeds will be used to pay the costs incurred in connection with the issuance of the bonds. Certificates of Obligation On occasion, the City issues certificates of obligation for which the City pledges not only the income derived from the acquired or constructed assets but also the full faith and credit of the City. On April 11, 2002 the City issued $14.48 million tax certificates of obligation with a true interest cost of 4.75% percent. The proceeds from this debt issuance will be used for the acquisition of equipment, street improvements, and the construction of a Municipal Court Building. The proceeds will also be used for construction of sidewalks, pedestrian bridges, and hiking trails, the acquisition of land, the reconstruction of a fire station and to pay the costs incurred in connection with the issuance of the Certificates. CITY OF COLLEGE STATION, TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 59 III. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) F. LONG-TERM DEBT (Continued) The following is a summary of long-term debt transactions for the year ended September 30, 2002. Beginning Balance Incurred/ Issued Matured/ Retired Ending Balance Governmental Fund Types General Obligation Bonds $ 39,375,000 $6,445,000 $ 4,155,000 $ 41,665,000 Certificates of Obligation 20,595,000 14,480,000 1,795,000 33,280,000 Accrued Vacation 1,288,346 1,039,061 893,911 1,433,496 Subtotal 61,258,346 21,964,061 6,843,911 76,378,496 Proprietary Fund Types Utility Revenue Bonds 63,185,000 18,215,000 3,165,000 78,235,000 Accrued Vacation: Electric Fund 95,332 138,062 114,729 118,665 Water Fund 49,722 53,927 50,876 52,773 Sewer Fund 55,983 51,994 48,070 59,907 Solid Waste Collection 28,454 38,202 40,981 25,675 Communication Fund 11,412 3,961 7,040 8,333 Parking Garage Fund 1,050 2,587 3,203 434 Fleet Maintenance Fund 17,892 25,634 21,099 22,427 Print/Mail Fund 6,056 6,728 6,307 6,477 Utility Billing Fund 47,281 48,642 48,860 47,063 Subtotal 63,498,182 18,584,737 3,506,165 78,576,754 Total Long-Term Debt $124,756,528 $40,548,798 $ 10,350,076 $154,955,250 III. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) CITY OF COLLEGE STATION, TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 60 F. LONG-TERM DEBT (Continued) Long-term debt outstanding as of September 30, 2002, consisted primarily of bonds maturing serially and is summarized as follows: Interest Rates (%) Series Matures Principal Balance General Obligation Bonds:0 1991 Issue 6.00-8.00 2012 $975,000 1994 Issue 5.50-7.50 2014 3,350,000 1995 Issue 5.10-7.00 2013 3,500,000 1996 Issue and Refunding 4.70-7.50 2017 6,275,000 1998 Issue 4.50-6.50 2017 5,515,000 1999 Issue 3.40-5.40 2017 5,595,000 2000 Issue 5.00-7.00 2018 7,210,000 2001 Issue 5.00-7.00 2017 2,800,000 2002 Issue 4.25-6.25 2021 6,445,000 Subtotal 41,665,000 Certificates of Obligation: 1998 Issue 4.55-7.30 2017 4,890,000 2000 Issue 5.00-7.00 2018 3,445,000 2000A Issue 4.75-6.75 2020 7,300,000 2001 Issue 3.50-5.00 2020 3,165,000 2002 Issue 3.50-5.125 2020 14,480,000 Subtotal 33,280,000 Utility Revenue Bonds: 1993 Issue 4.20-5.60 2013 2,750,000 1994 Issue 5.40-6.40 2014 9,900,000 1995 Issue 5.25-6.25 2016 4,200,000 1996 Issue and Refunding 4.15-5.60 2017 7,965,000 1998 Issue 4.55-6.50 2017 2,385,000 2000 Issue 5.00-7.00 2018 9,930,000 2001 Issue 3.50-5.50 2021 22,890,000 2002 Issue 4.00-6.00 2022 18,215,000 Subtotal 78,235,000 Total $153,180,000 CITY OF COLLEGE STATION, TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 61 III. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) F. LONG-TERM DEBT (Continued) Debt service requirements to maturity for all long-term debt is summarized as follows: General Obligation Bonds Utility Revenue Bonds Year Principal Interest Principal Interest 2003 $3,285,000 $2,049,490 $3,815,000 $3,944,756 2004 2,875,000 1,827,876 3,910,000 3,752,750 2005 2,460,000 1,685,364 4,120,000 3,547,429 2006 2,295,000 1,562,097 4,235,000 3,330,288 2007 2,400,000 1,447,345 3,870,000 3,125,368 2008-2012 13,620,000 5,438,710 21,565,000 12,405,547 2013-2017 12,285,000 2,125,273 22,365,000 6,420,552 2018-2022 2,445,000 205,560 14,355,000 1,606,703 TOTAL $ 41,665,000 $16,341,715 $ 78,235,000 $38,133,393 Certificates of Obligation Year Principal Interest 2003 $2,535,000 $1,578,566 2004 2,615,000 1,448,660 2005 2,715,000 1,311,641 2006 2,175,000 1,194,933 2007 1,840,000 1,103,525 2008-2012 7,435,000 4,457,226 2013-2017 9,185,000 2,475,328 2018-2020 4,780,000 369,213 TOTAL $ 33,280,000 $ 13,939,092 CITY OF COLLEGE STATION, TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 62 III. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) G. RESERVATIONS OF FUND BALANCES AND RETAINED EARNINGS Fund balances have been reserved at September 30, 2002, as follows: General Fund: Reserved for Encumbrances $900,465 Reserved for Inventory 66,308 Reserved for Police Seizure 22,255 Total General Fund Reserved 989,028 Special Revenue Funds: Reserved for Encumbrances 3,156,451 Total Special Revenue Funds Reserved 3,156,451 Debt Service Fund: Reserved for Debt Service 2,355,213 1,867,714Capital Projects Funds: Reserved for Encumbrances 4,430,607 Cemetery Perpetual Care Fund: Reserved for Perpetual Care 743,067 Total Reserved Fund Balances $11,674,366 Reserved retained earnings for the Enterprise Funds at September 30, 2002, are as follows: Res erved for Debt Service $ 5,643,783 Reserved for Capital Projects 16,637,786 Total Reserved Retained Earnings $ 22,281,569 H. CONTRIBUTED CAPITAL The changes during fiscal year 2002 in the City's contributed capital account for the Equipment Replacement Fund was as follows: Sources Equipment Replacement Contributed Capital, October 1 $ 1,279,100 Contributing Sources: Government 868,800 Contributed Capital, September 30 $ 2,147,900 CITY OF COLLEGE STATION, TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 63 III. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) H. CONTRIBUTED CAPITAL (Continued) There were no changes in contributed capital in the Electric, Water, Sewer, Solid Waste Collection, Cedar Creek Condominium, Northgate Parking Garage, or Internal Service Funds, excluding Equipment Replacement, during fiscal year 2002. I. OPERATING TRANSFERS Individual fund operating and other transfers out and corresponding operating transfers in for fiscal year 2002 were as follows: Operating Transfers Out Operating Transfers In Amount General Debt Service $ 478,091 General Electric 1,241 General Equipment Replacement 617 General Fleet Maintenance 858 Community Development Streets Projects 524,447 Community Development General Government Projects 12,231 Convention Center Debt Service 127,529 Hotel/Motel Debt Service 148,052 Parks Escrow Wolf Pen Creek TIF 120,000 Wolf Pen Creek TIF Streets Projects 505,000 General Government Projects Parks Projects 89,000 Electric General 4,574,900 Water General 923,800 Sewer General 729,500 Sanitation General 306,700 Northgate Parking Garage Streets Projects 225,000 J.RESTATEMENT OF RETAINED EARNINGS Electric Fund Retained Earnings, October 1, 2001 $39,922,630 Prior Period Adjustment 1 (353,761) Prior Period Adjustment 2 261,533 Retained Earnings (Restated) October 1, 2002 $39,830,402 CITY OF COLLEGE STATION, TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 64 III. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued) J. RESTATEMENT OF RETAINED EARNINGS (Continued) Retained Earnings in the Electric Fund has been restated due to prior period adjustments. Both adjustments are due to errors that occurred in FY 2001 when the Electric Fund began using a new system to track its fixed assets. Prior period adjustment 1 relates to an error in set-up that caused depreciation expense to be calculated incorrectly. The $353,761 adjustment represents an amount that should have been included in depreciation expense in FY 2001. Prior period adjustment 2 relates to an error in transferring construction in progress balances from the old system to the new system. The $261,533 adjustment brings the construction in progress balances on the new system in line with the general ledger. IV. OTHER INFORMATION A. PROPERTY TA XES Property is appraised and a lien on such property becomes enforceable as of January 1. Taxes are levied and payable on October 1. The Brazos County Tax Office bills and collects property taxes for the City. City property tax revenues are recognized when levied to the extent that they are collected in the current year. The balance is reported as deferred revenues. Taxes become delinquent February 1 of the following year and are subject to interest and penalty charges. The City is permitted by the State of Texas to levy taxes up to $2.50 per $100 of assessed valuation for general governmental services and for the payment of principal and interest on general long-term debt. The combined current tax rate to finance general government services including debt service for the year ended September 30, 2002, was $.4777 per $100 of assessed valuation. The Brazos County Appraisal District ("Appraisal District") is responsible for the recording and appraisal of property for all taxing units in Brazos County. The Appraisal District is required to assess property at 100% of its appraised value. Real property must be reappraised at least every four years. The City may, at its own expense, require annual reviews by the Appraisal District through various appeals and, if necessary, legal action. Under this system if the rate, excluding tax rates for bonds and other contractual obligations adjusted for new improvements, exceeds the rate for the previous year by more than 8%, qualified voters of the City may petition for an election to determine whether to limit the tax rate to no more than 8% above the tax rate of the previous year. B.COMMITMENTS AND CONTINGENCIES Construction Commitments At September 30, 2002, the City had a number of active construction projects. At year-end the City’s commitments with contractors were as follows: Project Type Remaining Commitment General Government Projects $ 3,766,524 Parks Projects 1,188,004 Sewer Projects 1,079,239 Streets Projects 1,385,019 Water Projects 1,831,621 Total $ 9,250,407 CITY OF COLLEGE STATION, TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 65 IV. OTHER INFORMATION (Continued) B. COMMITMENTS AND CONTINGENCIES (Continued) Other Commitments and Contingencies Prior to January 1, 1996, the City purchased electric power and energy from four cities (Bryan, Denton, Garland and Greenville) of the Texas Municipal Power Agency (TMPA) which was delivered through the TMPA and Bryan transmission facilities. On January 1, 1996, the City of College Station began purchasing its power through Texas Utilities (TU) Corporation. Bryan and TMPA alleged that College Station and TU were not authorized to use their respective facilities to deliver power to the City of College Station system and were thus trespassing on those facilities. Bryan and TMPA are seeking unspecified money damages for the alleged trespass. The Texas Public Utility Commission (TPUC) adopted rates and charges effective January 1, 1996. The rates and charges so established were to remain in effect until the TPUC adopted transmission rates for use throughout the Electric Reliability Council of Texas (ERCOT). TMPA and Bryan appealed those rates and charges. The TPUC established rates and charges in a similar manner for the period January 1, 1997 through August 31, 1999. TMPA and Bryan appealed those charges each year through the TPUC and various state district courts. In addition, the City is a party to an action before the Federal Energy Regulatory Commission (FERC) regarding rate issues for the same period. On June 18, 2001, the Texas Supreme Court invalidated the rate setting portions of TPUC Substantive Rules 23.67 and 23.70. The court held that the TPUC lacked authority to establish transmission rates and charges for the period September 1, 1995 through August 31, 1999 for municipally owned transmission facilities. The TPUC and FERC had previously set rates for the City based on the methodology used by the TPUC. At this point, it is not clear the effect these actions will have on the City’s general purpose financial statements. Due to the complexity of the rate setting methodologies and the legal issues involved, management is unable to make a determination of loss contingency, if any; therefore, no provision has been made in the accompanying general purpose financial statements. Management intends to vigorously defend the City’s position in regard to these actions . The City is contingently liable for lawsuits and other claims in the ordinary course of its operations. The settlement of such contingencies under the budgetary process would require appropriation of revenues yet to be realized and would not materially affect the financial position of the City at September 30, 2002. C. RISK MANAGEMENT A government entity, such as the City, is faced with the possibility of various losses which can result from natural disasters; theft of, damage to, or destruction of assets; human errors and omissions; and torts. In order to minimize its exposure to such losses, the City is engaged in the following risk management activities: The City is self-insured for the first $100,000 on property losses such as stolen, damaged, destroyed, vandalized, and lost assets and for liability losses filed by persons claiming personal or property damages. This coverage is provided through a Property and Casualty Fund that is funded by calculated contributions from the City’s operating funds. The fund includes an annual aggregate loss limit of $150,000. All claims are subject to review by the Risk Manager and the City Loss Review Committee, as necessary. CITY OF COLLEGE STATION, TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 66 IV. OTHER INFORMATION (Continued) C. RISK MANAGEMENT (Continued) The City retains the first $250,000 on the following lines of insurance coverage: Auto Liability, General Liability, Law Enforcement Liability, and Public Officials Liability. These property and casualty coverages are provided through TML Intergovernmental Risk Pool (“TML/IRP”), which is funded by calculated contributions from the City’s operating funds. TML/IRP provides all of the claims handling for these lines of coverage. The City reimburses TML/IRP on all paid claims which are settled within the $25,000 retention. The City’s Unemployment Fund is used to account for self-insurance activity involving claims filed under unemployment compensation laws. Monthly contributions based on a percentage of payroll are determined each year during the budget process and are used to fund this activity. The City is also self-insured for workers' compensation benefits, and the plan is administered by TML/IRP. In the City’s contract with TML, TML agrees to provide certain workers’ compensation services for the City such as paying claims, establishing claim reserves, processing filings with the Texas Worker’s Compensation Commission, conducting disability investigations, scheduling physical examinations, attending hearings, and printing claims reports. The City is required to process and provide to TML initial paperwork on any covered employee eligible to receive worker’s compensation benefits. The City pays a fixed contribution for administrative costs and maintains a deposit for any claims runoff in the event that the contract is canceled. The City also reimburses TML for all claims paid on the City’s behalf up to a maximum of $100,000 per claim. Additionally, the City has a stop-loss insurance policy that limits its liability per employee to $500,000 per incident. The amount for estimated outstanding losses for claims incurred but not reported is not material. The City retains the first $100,000 on it’s Workers Compensation coverage. The City obtains this coverage through TML Intergovernmental Risk Pool, who is responsible for all costs in excess of the City’s $100,000 retention. TML/IRP provides complete claims administration over all workers compensation claims. The City reimburses TML/IRP on all paid claims which are settled within the $100,000 retention. The amount for estimated outstanding losses for claims incurred but not reported (IBNR) is not material. The amount of settlements in each of the above self-insurance funds has not exceeded insurance coverage for each of the past three years Changes in the balances of claims liabilities for the self-insurance funds which are accounted for as Internal Service Funds are as follows: 2002 2001 Unpaid Claims, October 1 $412,677 $701,053 Incurred Claims (including IBNR’s)852,136 2,630,192 Claims Paid (1,107,316)(2,918,568) Unpaid Claims, September 30 $157,497 $412,677 The City uses Internal Service Funds to account for its risk-management activities. In addition, interfund premiums are reported as quasi-external transactions. CITY OF COLLEGE STATION, TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 67 D.JOINT VENTURE In May 1990, the City of College Station joined the City of Bryan in creating BVSWMA. The primary purpose of BVSWMA is to achieve economy of scale savings for the participants through joint ownership and use of regional waste management facilities. Each city holds a 50% interest and ownership in BVSWMA. BVSWMA is governed by an Administrative Board of Trustees ("Board") comprised of the City Manager and a staff person from each city; in addition, the Mayors of each city serve alternating two-year terms on the Board. The Board has complete responsibility for the daily operating activities of BVSWMA. After Board approval, the BVSWMA annual budget is presented for approval by both cities as a part of their regular budget. The City's share of BVSWMA's net income for fiscal 2002 was $842,323. The following is a summary of information from the audited financial statements of BVSWMA as of September 30, 2002 and 2001: 2002 2001 Assets: Current Assets $11,471,225 $10,444,228 Property, Plant and Equipment (Net of $3,886,369 Accumulated Depreciation at 2002 and $3,265,871 at 2001)4,773,722 4,024,545 Other Assets 238,048 77,148 Total Assets $16,482,995 $14,545,921 Liabilities: Current Liabilities $506,635 $489,989 Noncurrent Liabilities: Accrued Vacation 48,492 37,548 Accrued Post Closure Maintenance Costs 3,348,818 3,123,980 Total Liabilities 3,903,945 3,651,517 Fund Equity: Contributed Equity 170,200 170,200 Retained Earnings 12,408,850 10,724,204 Total Fund Equity 12,579,050 10,894,404 Total Liabilities and Fund Equity $16,482,995 $14,545,921 Total Operating Revenues $5,396,098 $5,237,840 Total Operating Expenses 4,138,398 4,176,440 Operating Income 1,257,700 1,061,400 Net Nonoperating Revenues (Expenses)426,946 267,984 Net Income $1,684,646 $1,329,384 A copy of BVSWMA's separate audited financial statements may be obtained from the City's Fiscal Services Department. CITY OF COLLEGE STATION, TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 68 IV. OTHER INFORMATION (Continued) E.RETIREMENT PLAN The City has adopted GASB Statement No. 27, Accounting for Pensions by State and Local Government Employees. This statement requires the following disclosures: Plan Description The City provides pension benefits for all of its full-time employees through a nontraditional, joint contributory, hybrid defined benefit plan in the state-wide Texas Municipal Retirement System ("TMRS"), one of 758 administered by TMRS, an agent multiple-employer public employee retirement system. Benefits depend upon the sum of the employee's contributions to the plan, with interest, and the City-financed monetary 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 200 percent of the employee's accumulated contributions. In addition, the City can grant as often as annually another type of monetary credit referred to as an updated service credit which is a theoretical amount which, when added to the employee's accumulated contributions and the monetary credits for service since the plan began, would be the total monetary credits and employee contributions accumulated with interest if the current employee contribution rate and City matching percent had always been in existence and if the employee's salary had always been the average of his salary in the last three years that are one year before 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. The plan provisions are adopted by the governing body of the City, within the options available in the state statutes governing TMRS and within actuarial constraints also in the statutes. Plan provisions for the City were as follows: Deposit Rate: 6% Matching Ratio (City to Employee): 2-1 Actuarial Assumptions The City of College Station is one of 758 municipalities having the benefit plan administered by TMRS. Each of the 758 municipalities has an annual, individual actuarial valuation performed. Actuarial assumptions as of the latest actuarial valuation are as follows: Actuarial Cost Method:Unit Credit Amortization Method:Level Percent of Payroll Remaining Amortization Period:25 years- Open Period Asset Valuation Method:Amortized Cost (To accurately reflect the requirements of GASB Statement No. 25, paragraphs 36e and 138) Actuarial Assumptions: Investment Rate of Return:8% Projected Salary Increases:None Includes Inflation at:None Cost-of-Living Adjustments:None CITY OF COLLEGE STATION, TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 69 IV.OTHER INFORMATION (Continued) E.RETIREMENT PLAN (Continued) Members can retire at age 60 and above with 5 or more years of service or with 20 years of service regardless of age. A member is vested after 5 years. The plan provisions are adopted by the governing body of the City, within the options available in the state statutes governing TMRS and within the actuarial constraints also in the statutes. Contributions Under the state law governing TMRS, the actuary annually determines the City contribution rate. This rate consists of the normal cost contribution rate and the prior service contribution rate, both of which are calculated to be a level percent of payroll from year to year. The normal cost contribution rate finances the currently accruing monetary credits due to the City matching percent, which are the obligation of the City as of an employee’s retirement date, not at the time the employee’s contributions are made. The normal cost contribution rate is the actuarially determined percent of payroll necessary to satisfy the obligation of the City to each employee at the time his/her retirement becomes effective. The prior service contribution rate amortizes the unfunded (overfunded) actuarial liability (asset) over the remainder of the plan’s 25-year amortization period. The unit credit actuarial cost method is used for determining the City contribution rate. Both the employees and the City make contributions monthly. Since the City needs to know its contribution rate in advance for budgetary purposes, there is one-year delay between the actuarial valuation that is the basis for the rate and the calendar year when the rate goes into effect. (i.e. December 31, 2001 valuation is effective for rates beginning January 2003). The City of College Station is one of 758 municipalities having the benefit plan administered by TMRS. Each of the 758 Municipalities have an annual, individual actuarial valuation performed. All assumptions for the 12-31-01 valuations are contained in the 2001 TMRS Comprehensive Annual Financial Report, a copy of which may be obtained by writing to P.O. Box 149153, Austin, Texas 78714-9153. Trend Information Trend information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due. Applicable historical trend information concerning this plan is presented below and on the next page: Fiscal Year Ending Annual Required Contribution (ARC) Contributions Made Net Pension Obligation 1994 980,194 980,194 0 1995 1,028,586 1,028,586 0 1996 1,107,037 1,107,037 0 1997 1,299,737 1,299,737 0 1998 1,662,022 1,662,022 0 1999 1,965,749 1,965,749 0 2000 2,154,204 2,154,204 0 2001 2,272,217 2,272,217 0 2002 2,511,159 2,511,159 0 CITY OF COLLEGE STATION, TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 70 IV. OTHER INFORMATION (Continued) E.RETIREMENT PLAN (Continued) Schedule of Funding Progress Actuarial Valuation Date Actuarial Value of Assets Accrued Actuarial Liability (AAL) Unfunded Actuarial Accrued Liability (UAAL) Net Assets Available as a Percent of Pension Benefit Obligation 12/31/92 16,151,960 18,618,664 2,466,704 87% 12/31/93 19,345,662 22,717,522 3,371,860 85% 12/31/94 21,969,264 26,863,012 4,893,748 82% 12/31/95 26,004,146 31,518,807 5,514,661 83% 12/31/96 30,332,645 36,941,994 6,609,349 82% 12/31/97 34,566,021 42,100,099 7,534,078 82% 12/31/98 38,759,223 45,574,205 6,814,982 85% 12/31/99 43,010,803 49,987,308 6,976,505 86% 12/31/00 47,880,750 55,811,761 7,931,011 86% 12/31/01 52,927,528 61,856,550 8,929,022 86% Actuarial Valuation Date Covered Payroll UAAL as a Percentage of Annual Covered Payroll 12/31/92 14,658,546 17% 12/31/93 16,049,130 21% 12/31/94 17,086,936 29% 12/31/95 17,581,968 31% 12/31/96 18,001,720 37% 12/31/97 17,839,856 42% 12/31/98 19,339,128 35% 12/31/99 20,803,862 34% 12/31/00 23,651,256 34% 12/31/01 25,422,558 35% Post Retirement Benefits In addition to providing pension benefits, the City provides certain health care benefits for retired employees as established by City Resolution No. 9-13-90-5.10, which was passed and approved by the City Council on September 13, 1990. According to this resolution, employees who retire while working for the City and their dependents are eligible to remain on the City’s health plan as long as the employee makes monthly premium payments. During fiscal year 2002, twelve former employees were covered under this arrangement. Prior to the passage of this resolution, employees who reached retirement while working for the City were eligible to remain on the City’s self-insured health plan and have their monthly premiums paid for by the City. During fiscal year 2002, one retiree was covered under this plan; however, claims filed by this retiree were not material. CITY OF COLLEGE STATION, TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 71 IV.OTHER INFORMATION (Continued) F.SEGMENT INFORMATION OF ENTERPRISE FUN DS The City maintains six enterprise funds. Segment information for the year ended September 30, 2002, is as follows (amounts in thousands): Electric Fund Water Fund Sewer Fund Solid Waste Collection Fund Cedar Creek Condominium Fund Northgate Parking Garage Total Operating Revenues $45,252 $8,686 $8,203 $4,307 $0 $452 $66,900 Operating Expenses (Excluding Depreciation)37,679 4,566 4,030 4,379 0 438 51,092 Depreciation 2,399 1,264 1,239 14 0 160 5,076 Operating Income 5,174 2,856 2,935 (86)0 (146)10,733 Operating Transfers, Net (4,574)(924)(730)(307)0 (225)(6,760) Net Income (Loss)357 1,335 820 470 2 (261)2,723 Property and Equipment Additions 23,297 15,205 13,241 0 0 222 51,965 Net Working Capital 14,266 11,118 3,757 1,305 303 833 31,582 Total Assets 70,089 72,765 69,857 7,757 446 7,198 228,112 Bonds and Other Long-Term Liabilities (Excluding Current Portion) 13,713 27,239 33,588 26 0 0 74,566 Total Equity 44,731 42,654 32,850 7,589 303 7,187 135,314 G.DEFERRED COMPENSATION PLAN The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan is available to all City employees and permits them to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency. It is the opinion of the City's legal counsel that the City has no liability for losses under the plan. CITY OF COLLEGE STATION, TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2002 72 IV. OTHER INFORMATION (Continued) H.POWER COST RECOVERY The City is allowed to recover purchased power costs as power cost adjustments. This power cost recovery allows for the pass-through of power costs to the customers and has no impact on net income. The amount of any under or over recovered purchased power costs at year-end was not material. I.REVENUE BOND COVERAGE All the net revenues of the Electric, Water, and Sewer Funds are pledged for the payment of debt service of the revenue bonds and other indebtedness payable from those revenues. Net revenues, as defined by the revenue bond resolutions, include substantially all of the revenues and expenses of the above named funds other than certain interest income and expense, and depreciation and amortization. These bond resolutions further require that the net revenues, as defined, equal at least 1.40 times the average annual debt service on all revenue bonds and other indebtedness payable from those revenues and 1.25 times the maximum annual debt service on all revenue bonds and other indebtedness payable from those revenues. The maximum annual debt service is defined as the maximum principal and interest payments to be paid in any one year remaining in the life of the bonds, and the average annual debt service is defined as the sum of all principal and interest payments due over the remaining life of the bonds divided by the remaining life of the bonds. The City is in compliance with these requirements. J.BONDS AVAILABLE FOR SALE Authorized general obligation bonds available for future issue are as follows: Year Authorized Unissued Amount Public Buildings 1984 $700,000 Street Improvements 1984 500,000 Street Improvements 1998 973,000 Traffic Management 1998 720,000 Fire Station Improvements 1998 1,317,000 City Facilities 1998 780,000 Drainage Improvements 1998 1,855,000 TOTAL $6,845,000 K. RECENT ACCOUNTING PRONOUNCEMENT – GOVERNMENTAL ACCOUTING STANDARDS BOARD STATEMENT 34 – “BASIC FINANCIAL STATEMENTS – AND MANAGEMENT DISCUSSION AND ANALYSIS – FOR STATE AND LOCAL GOVERNMENTS” With the fiscal year ending September 30, 2003, the City will implement the provisions of Governmental Accounting Standards Board Statement 34. The City has not completed the process of evaluating the impact that will result from adopting Statement 34. The City is therefore unable to disclose the impact that adopting The New Reporting Model will have on the financial position and results of operations of the City when such statement is adopted. 73 GENERAL FUND The General Fund is used to account for resources traditionally associated with government which are not required legally or by sound financial management to be accounted for in another fund. CITY OF COLLEGE STATION, TEXAS GENERAL FUND SCHEDULE OF REVENUES AND OTHER FINANCING SOURCES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2002 (Continued) Original Budget Revised Budget Actual Variance Over (Under) Taxes Current Property 4,525,172$ 4,525,172$ 4,489,864$ (35,308)$ Delinquent Property 25,000 25,000 36,567 11,567 Tax Penalty and Interest 13,000 13,000 28,915 15,915 General Sales 13,168,000 13,168,000 13,413,911 245,911 Mixed Drinks 206,000 206,000 234,924 28,924 Franchise 1,733,000 1,733,000 1,714,241 (18,759) Total Taxes 19,670,172 19,670,172 19,918,422 248,250 Licenses and Permits: Mixed Drinks 16,000 16,000 28,220 12,220 Game Machines 1,000 1,000 660 (340) Professional/Occupational 30,500 30,500 30,943 443 Builders Permits 480,000 480,000 504,695 24,695 Electrical Permits 38,000 38,000 61,154 23,154 Plumbing Permits 62,000 62,000 100,658 38,658 Mechanical Permits 26,000 26,000 54,147 28,147 Other 72,000 72,000 90,159 18,159 Total Licenses and Permits 725,500 725,500 870,636 145,136 Intergovernmental 305,317 330,317 414,767 84,450 Charges for Services: Parks Concessions 16,000 16,000 7,389 (8,611) Pool Admissions 233,000 233,000 250,094 17,094 Sports Instruction 111,000 111,000 133,272 22,272 Sports Programs 189,000 189,000 200,761 11,761 Special Events 0 0 569 569 Teen Center 8,000 8,000 6,827 (1,173) Other Parks 25,000 25,000 20,282 (4,718) Finger Printing 4,000 4,000 3,152 (848) Police Reports and Records Checks 16,000 16,000 11,658 (4,342) Arrest Fees 134,000 134,000 97,478 (36,522) Warrant Service Fees 74,000 74,000 104,992 30,992 Police Escort Services 29,000 29,000 31,214 2,214 False Alarms 23,000 23,000 23,750 750 Other Police 222,000 222,000 185,266 (36,734) EMS Transport and Standbys 389,000 389,000 464,497 75,497 (Continued) 74 CITY OF COLLEGE STATION, TEXAS GENERAL FUND SCHEDULE OF REVENUES AND OTHER FINANCING SOURCES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2002 (Continued) Original Budget Revised Budget Actual Variance Over (Under) Fire Inspections 7,000$ 7,000$ 5,710$ (1,290)$ Code Enforcement Fees 3,000 3,000 9,975 6,975 Other Fire 3,000 3,000 125 (2,875) Fire Hazardous Material Response 5,000 5,000 0 (5,000) Street Sweeps and Repairs 1,000 1,000 1,075 75 Municipal Court Fees 111,000 111,000 68,818 (42,182) Building Inspection Fees 12,000 12,000 25,442 13,442 Planning Fees 60,000 60,000 120,868 60,868 Engineering Fees 66,000 66,000 53,272 (12,728) Other Development Service Fees 0 0 60 60 Certificate Searches 13,000 13,000 12,169 (831) Other 1,000 1,000 1,052 52 Total Charges for Services 1,755,000 1,755,000 1,839,767 84,767 Fines, Forfeits and Penalties Municipal Court Fines 1,690,000 1,690,000 2,324,073 634,073 Other Fines and Penalties 0 0 6,575 6,575 Total Fines, Forfeits and Penalties 1,690,000 1,690,000 2,330,648 640,648 Special Assessments 1,000 1,000 0 (1,000) Use of Money and Property Investment Income 477,000 477,000 467,152 (9,848) Rents and Royalties 74,000 74,000 113,724 39,724 Total Use of Money and Property 551,000 551,000 580,876 29,876 Miscellaneous Contributions 27,000 27,000 21,475 (5,525) Reimbursed Expenditures 6,000 6,000 32,803 26,803 Collections Service Fees 97,000 97,000 97,552 552 Other 34,000 34,000 68,716 34,716 Total Miscellaneous 164,000 164,000 220,546 56,546 Total Revenues 24,861,989 24,886,989 26,175,662 1,288,673 (Continued) 75 CITY OF COLLEGE STATION, TEXAS GENERAL FUND SCHEDULE OF REVENUES AND OTHER FINANCING SOURCES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2002 (Continued) Original Budget Revised Budget Actual Variance Over (Under) Other Financing Sources Operating Transfers In 6,235,000$ 6,235,000$ 6,236,793$ 1,793$ Sale of General Fixed Assets 41,000 41,000 30,106 (10,894) Total Other Financing Sources 6,276,000 6,276,000 6,266,899 (9,101) Total General Fund Revenues and Other Financing Sources 31,137,989 31,162,989 32,442,561 1,279,572 Economic Development Fund Investment Income 43,600 43,600 36,444 (7,156) Operating Transfers In 250,000 250,000 299,900 49,900 Total Economic Development Fund 293,600 293,600 336,344 42,744 Parks Xtra Education Fund Charges for Services 55,100 55,100 90,444 35,344 Investment Income 5,200 5,200 2,986 (2,214) Total Parks Xtra Education Fund 60,300 60,300 93,430 33,130 Police Seizure Fund Intergovernmental Revenue 0 0 8,359 8,359 Investment Income 1,200 1,200 957 (243) Total Police Seizure Fund 1,200 1,200 9,316 8,116 Court Technology Fee Fund Charges For Services 103,000 103,000 76,153 (26,847) Investment Income 6,800 6,800 5,931 (869) Total Court Technology Fee Fund 109,800 109,800 82,084 (27,716) Court Security Fee Fund Charges For Services 74,500 74,500 57,487 (17,013) Investment Income 6,600 6,600 5,175 (1,425) Total Court Security Fee Fund 81,100 81,100 62,662 (18,438) Court Efficiency Time Payment Fee Fund Charges For Services 0 0 3,962 3,962 Investment Income 0 0 604 604 Total Court Efficiency Time Payment Fee Fund 0 0 4,566 4,566 (Continued) 76 CITY OF COLLEGE STATION, TEXAS GENERAL FUND SCHEDULE OF REVENUES AND OTHER FINANCING SOURCES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2002 (Continued) Original Budget Revised Budget Actual Variance Over (Under) Thoroughfare Rehabilitation Fund Investment Income 0$ 0$ 78$ 78$ Total Thoroughfare Rehabilitation Fund 0 0 78 78 Total All General Fund Revenues and Other Financing Sources 31,683,989$ 31,708,989$ 33,031,041$ 1,322,052$ (Continued) 77 CITY OF COLLEGE STATION, TEXAS GENERAL FUND SCHEDULE OF EXPENDITURES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2002 (Continued) Original Budget Revised Budget Actual Variance Over (Under) General Government City Secretary Salaries and Benefits 169,050$ 170,047$ 176,515$ 6,468$ Supplies 22,463 22,463 21,990 (473) Maintenance 4,529 4,529 4,762 233 Purchased Professional Services 19,681 19,681 20,282 601 Purchased Property Services 4,433 4,433 5,295 862 Other Purchased Services 81,116 73,772 67,729 (6,043) Total City Secretary 301,272 294,925 296,573 1,648 City Manager Salaries and Benefits 552,839 573,065 581,038 7,973 Supplies 19,339 19,339 16,787 (2,552) Maintenance 9,290 9,290 9,290 0 Purchased Professional Services 0 0 5,789 5,789 Purchased Property Services 3,790 3,790 4,924 1,134 Other Purchased Services 38,163 38,163 41,831 3,668 Total City Manager 623,421 643,647 659,659 16,012 Legal Salaries and Benefits 518,435 541,500 554,727 13,227 Supplies 37,831 37,831 45,149 7,318 Maintenance 6,230 6,230 6,551 321 Purchased Professional Services 40 40 57 17 Purchased Property Services 2,990 2,990 3,682 692 Other Purchased Services 29,678 29,678 20,486 (9,192) Total Legal 595,204 618,269 630,652 12,383 Economic Development Salaries and Benefits 170,771 171,436 169,643 (1,793) Supplies 5,680 5,680 3,720 (1,960) Maintenance 1,550 1,550 1,550 0 Purchased Professional Services 94,980 130,475 16,524 (113,951) Purchased Property Services 1,650 1,650 1,160 (490) Other Purchased Services 29,015 29,015 16,870 (12,145) Total Economic Development 303,646 339,806 209,467 (130,339) (Continued) 78 CITY OF COLLEGE STATION, TEXAS GENERAL FUND SCHEDULE OF EXPENDITURES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2002 (Continued) Original Budget Revised Budget Actual Variance Over (Under) Community Development Salaries and Benefits 442,320$ 444,648$ 450,116$ 5,468$ Supplies 11,989 11,989 5,547 (6,442) Maintenance 12,831 12,831 10,941 (1,890) Purchased Professional Services 31,377 31,377 32,951 1,574 Purchased Property Services 52,931 52,931 54,911 1,980 Other Purchased Services 33,379 33,379 17,294 (16,085) Total Community Development 584,827 587,155 571,760 (15,395) Public Relations Salaries and Benefits 122,063 122,728 125,094 2,366 Supplies 6,068 6,068 3,597 (2,471) Maintenance 2,730 2,730 2,123 (607) Purchased Professional Services 1,990 1,990 193 (1,797) Purchased Property Services 790 790 1,455 665 Other Purchased Services 75,029 82,373 70,960 (11,413) Total Public Relations 208,670 216,679 203,422 (13,257) Human Resources Salaries and Benefits 310,146 311,813 327,188 15,375 Supplies 27,665 31,065 29,319 (1,746) Maintenance 5,730 5,730 5,730 0 Purchased Professional Services 0 0 324 324 Purchased Property Services 3,780 3,780 4,747 967 Other Purchased Services 40,779 42,600 38,977 (3,623) Total Human Resources 388,100 394,988 406,285 11,297 Budget/Research Division Salaries and Benefits 230,704 231,701 222,957 (8,744) Supplies 2,600 2,600 2,435 (165) Maintenance 2,590 2,590 2,590 0 Purchased Professional Services 36,400 36,400 28,719 (7,681) Purchased Property Services 800 800 1,108 308 Other Purchased Services 17,810 17,810 23,372 5,562 Total Budget/Research Division 290,904 291,901 281,181 (10,720) Total General Government 3,296,044 3,387,370 3,258,999 (128,371) (Continued) 79 CITY OF COLLEGE STATION, TEXAS GENERAL FUND SCHEDULE OF EXPENDITURES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2002 (Continued) Original Budget Revised Budget Actual Variance Over (Under) Fiscal Services Financial Administration Salaries and Benefits 170,585$ 171,250$ 170,134$ (1,116)$ Supplies 10,000 10,000 8,340 (1,660) Maintenance 2,070 2,070 2,262 192 Purchased Professional Services 114,530 129,411 128,392 (1,019) Purchased Property Services 870 870 1,127 257 Other Purchased Services 14,885 14,885 11,962 (2,923) Total Financial Administration 312,940 328,486 322,217 (6,269) Accounting Salaries and Benefits 501,176 504,336 480,785 (23,551) Supplies 16,844 16,844 15,518 (1,326) Maintenance 6,760 6,760 7,508 748 Purchased Professional Services 82,945 82,945 78,038 (4,907) Purchased Property Services 6,040 6,040 4,134 (1,906) Other Purchased Services 99,690 99,690 88,838 (10,852) Total Accounting 713,455 716,615 674,821 (41,794) Purchasing Salaries and Benefits 230,063 231,393 230,045 (1,348) Supplies 1,250 1,250 1,282 32 Maintenance 3,100 3,100 3,100 0 Purchased Professional Services 16,300 16,300 6,638 (9,662) Purchased Property Services 1,580 1,580 2,403 823 Other Purchased Services 20,810 20,810 14,171 (6,639) Total Purchasing 273,103 274,433 257,639 (16,794) Municipal Court Salaries and Benefits 495,295 513,676 556,009 42,333 Supplies 15,250 15,250 15,592 342 Maintenance 8,510 8,510 9,455 945 Purchased Professional Services 19,835 19,835 39,396 19,561 Purchased Property Services 5,080 5,080 9,563 4,483 Other Purchased Services 64,545 64,545 50,051 (14,494) Total Municipal Court 608,515 626,896 680,066 53,170 (Continued) 80 CITY OF COLLEGE STATION, TEXAS GENERAL FUND SCHEDULE OF EXPENDITURES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2002 (Continued) Original Budget Revised Budget Actual Variance Over (Under) Risk Management Salaries and Benefits 139,860$ 140,359$ 143,328$ 2,969$ Supplies 3,170 3,170 1,080 (2,090) Maintenance 1,590 1,590 1,540 (50) Purchased Professional Services 150 150 433 283 Purchased Property Services 1,210 1,210 1,575 365 Other Purchased Services 8,307 8,307 9,354 1,047 Total Risk Management 154,287 154,786 157,310 2,524 Total Fiscal Services 2,062,300 2,101,216 2,092,053 (9,163) Police Police Administration Salaries and Benefits 618,212 620,208 659,974 39,766 Supplies 7,616 7,616 10,963 3,347 Maintenance 2,050 2,050 2,695 645 Purchased Professional Services 100 100 4,712 4,612 Other Purchased Services 23,120 24,516 35,447 10,931 Total Police Administration 651,098 654,490 713,791 59,301 Uniform Patrol Salaries and Benefits 3,664,938 3,685,951 3,781,552 95,601 Supplies 81,782 81,782 27,987 (53,795) Maintenance 55,780 55,780 56,155 375 Purchased Professional Service 31,955 31,955 31,983 28 Purchased Property Services 650 650 0 (650) Other Purchased Services 143,315 146,184 148,634 2,450 Capital Outlay 0 14,780 51,016 36,236 Total Uniform Patrol 3,978,420 4,017,082 4,097,327 80,245 Criminal Investigation Salaries and Benefits 827,448 831,202 778,447 (52,755) Supplies 10,419 10,419 9,078 (1,341) Maintenance 8,864 8,864 8,760 (104) Purchased Professional Services 18,689 18,689 19,735 1,046 Purchased Property Services 585 585 520 (65) Other Purchased Services 37,024 37,024 35,447 (1,577) Capital Outlay 0 0 14,995 14,995 (Continued) 81 CITY OF COLLEGE STATION, TEXAS GENERAL FUND SCHEDULE OF EXPENDITURES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2002 (Continued) Original Budget Revised Budget Actual Variance Over (Under) Total Criminal Investigation 903,029$ 906,783$ 866,982$ (39,801)$ Personnel Services Salaries and Benefits 247,309 248,668 201,570 (47,098) Supplies 23,480 23,480 19,269 (4,211) Maintenance 1,800 1,800 1,800 0 Purchased Professional Service 23,240 23,240 22,968 (272) Other Purchased Services 15,301 16,186 11,191 (4,995) Total Personnel Services 311,130 313,374 256,798 (56,576) Quartermaster Salaries and Benefits 29,886 30,219 29,986 (233) Supplies 167,682 170,082 150,334 (19,748) Maintenance 238,536 238,536 242,394 3,858 Purchased Professional Services 11,996 11,996 9,874 (2,122) Purchased Property Services 104,070 104,070 102,645 (1,425) Other Purchased Services 197,125 197,125 220,905 23,780 Total Quartermaster 749,295 752,028 756,138 4,110 Communications/Jail Salaries and Benefits 1,026,976 1,034,451 1,053,253 18,802 Supplies 8,662 8,662 10,992 2,330 Maintenance 43,023 33,773 27,515 (6,258) Purchased Professional Services 6,818 16,068 11,377 (4,691) Other Purchased Services 37,524 40,234 37,942 (2,292) Capital Outlay 19,500 19,500 15,792 (3,708) Total Communications/Jail 1,142,503 1,152,688 1,156,871 4,183 Special Services Salaries and Benefits 574,789 577,829 603,550 25,721 Supplies 15,747 15,747 22,069 6,322 Maintenance 7,933 7,933 7,746 (187) Purchased Professional Services 57,432 57,432 46,597 (10,835) Purchased Property Services 430 430 750 320 Other Purchased Services 37,650 42,959 37,398 (5,561) Capital Outlay 27,925 27,925 0 (27,925) Total Special Services 721,906 730,255 718,110 (12,145) (Continued) 82 CITY OF COLLEGE STATION, TEXAS GENERAL FUND SCHEDULE OF EXPENDITURES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2002 (Continued) Original Budget Revised Budget Actual Variance Over (Under) Technical Services Salaries and Benefits 366,733$ 369,079$ 265,173$ (103,906)$ Supplies 4,780 4,780 2,462 (2,318) Maintenance 690 690 690 0 Purchased Professional Services 0 0 8 8 Other Purchased Services 17,527 17,527 8,735 (8,792) Total Technical Services 389,730 392,076 277,068 (115,008) Total Police 8,847,111 8,918,776 8,843,085 (75,691) Fire Fire Administration Salaries and Benefits 299,664 301,329 309,767 8,438 Supplies 12,320 12,320 11,806 (514) Maintenance 30,146 30,146 28,697 (1,449) Purchased Professional Services 523 523 0 (523) Purchased Property Services 36,999 36,999 36,609 (390) Other Purchased Services 31,375 31,375 29,950 (1,425) Capital Outlay 3,400 43,770 40,370 (3,400) Total Fire Administration 414,427 456,462 457,199 737 Fire Suppression Salaries and Benefits 3,066,371 3,081,838 2,846,037 (235,801) Supplies 158,895 158,895 117,618 (41,277) Maintenance 115,991 115,991 121,272 5,281 Purchased Professional Services 2,637 2,637 1,573 (1,064) Purchased Property Services 55,510 55,510 48,913 (6,597) Other Purchased Services 189,907 189,907 171,132 (18,775) Capital Outlay 90,607 90,607 6,638 (83,969) Total Fire Suppression 3,679,918 3,695,385 3,313,183 (382,202) Fire Prevention Salaries and Benefits 504,983 508,005 533,846 25,841 Supplies 33,162 33,162 40,530 7,368 Maintenance 18,782 18,782 18,370 (412) Purchased Professional Services 7,768 7,768 8,195 427 Purchased Property Services 2,802 2,802 2,064 (738) Other Purchased Services 38,024 38,024 67,032 29,008 (Continued) 83 CITY OF COLLEGE STATION, TEXAS GENERAL FUND SCHEDULE OF EXPENDITURES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2002 (Continued) Original Budget Revised Budget Actual Variance Over (Under) Capital Outlay 24,000$ 24,000$ 0$ (24,000)$ Total Fire Prevention 629,521 632,543 670,037 37,494 Emergency Medical Services Salaries and Benefits 1,625,537 1,660,425 1,661,377 952 Supplies 109,733 109,733 101,611 (8,122) Maintenance 47,863 47,863 49,568 1,705 Purchased Professional Services 15,891 15,891 10,896 (4,995) Purchased Property Services 9,219 9,219 10,621 1,402 Other Purchased Services 65,946 65,946 66,690 744 Capital Outlay 20,000 20,000 19,158 (842) Total Emergency Medical Services 1,894,189 1,929,077 1,919,921 (9,156) Total Fire 6,618,055 6,713,467 6,360,340 (353,127) Development Services Development Services Administration Salaries and Benefits 578,905 582,244 576,595 (5,649) Supplies 16,328 16,328 40,691 24,363 Maintenance 11,109 11,109 17,558 6,449 Purchased Professional Services 17,383 17,383 54,317 36,934 Purchased Property Services 3,305 3,305 1,536 (1,769) Other Purchased Services 55,671 55,671 49,839 (5,832) Total Development Services Administration 682,701 686,040 740,536 54,496 Engineering Salaries and Benefits 192,002 192,667 120,756 (71,911) Supplies 1,100 1,100 17,334 16,234 Maintenance 1,610 1,610 1,610 0 Purchased Professional Services 8,000 8,000 2,624 (5,376) Purchased Property Services 1,690 1,690 1,181 (509) Other Purchased Services 8,115 8,115 4,469 (3,646) Total Engineering 212,517 213,182 147,974 (65,208) (Continued) 84 CITY OF COLLEGE STATION, TEXAS GENERAL FUND SCHEDULE OF EXPENDITURES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2002 (Continued) Original Budget Revised Budget Actual Variance Over (Under) Planning Salaries and Benefits 854,339$ 857,678$ 822,724$ (34,954)$ Supplies 22,531 22,741 30,043 7,302 Maintenance 24,382 24,382 26,506 2,124 Purchased Professional Services 16,378 54,991 10,019 (44,972) Purchased Property Services 4,784 4,784 5,921 1,137 Other Purchased Services 101,746 101,746 85,882 (15,864) Total Planning 1,024,160 1,066,322 981,095 (85,227) Total Development Services 1,919,378 1,965,544 1,869,605 (95,939) Public Works Public Works Administration Salaries and Benefits 426,687 428,685 443,018 14,333 Supplies 15,675 15,675 12,999 (2,676) Maintenance 7,580 7,580 7,634 54 Purchased Property Services 27,860 27,860 27,496 (364) Other Purchased Services 15,005 15,005 18,803 3,798 Total Public Works Administration 492,807 494,805 509,950 15,145 Facilities Maintenance Salaries and Benefits 282,513 284,187 299,664 15,477 Supplies 18,894 18,894 14,544 (4,350) Maintenance 418,930 451,279 391,372 (59,907) Purchased Professional Services 174,157 174,157 158,229 (15,928) Purchased Property Services 70,410 70,410 73,429 3,019 Other Purchased Services 24,514 24,514 23,772 (742) Total Facilities Maintenance 989,418 1,023,441 961,010 (62,431) Streets Maintenance Salaries and Benefits 811,576 816,278 751,007 (65,271) Supplies 58,170 58,170 54,581 (3,589) Maintenance 1,066,516 1,066,516 1,110,845 44,329 Purchased Professional Services 17,150 17,150 5,213 (11,937) Purchased Property Services 25,744 25,744 28,574 2,830 Other Purchased Services 176,773 176,773 344,899 168,126 Capital Outlay 172,500 172,500 0 (172,500) Total Streets Maintenance 2,328,429 2,333,131 2,295,119 (38,012) (Continued) 85 CITY OF COLLEGE STATION, TEXAS GENERAL FUND SCHEDULE OF EXPENDITURES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2002 (Continued) Original Budget Revised Budget Actual Variance Over (Under) Drainage Maintenance Salaries and Benefits 197,739$ 199,427$ 207,233$ 7,806$ Supplies 8,460 8,460 9,160 700 Maintenance 97,460 97,460 105,852 8,392 Purchased Professional Services 0 0 61 61 Purchased Property Services 7,624 7,624 5,487 (2,137) Other Purchased Services 40,058 40,058 40,061 3 Total Drainage Maintenance 351,341 353,029 367,854 14,825 Traffic Signs/Markings Salaries and Benefits 75,907 76,261 64,536 (11,725) Supplies 64,934 64,934 64,969 35 Maintenance 15,039 15,039 7,601 (7,438) Purchased Professional Services 0 0 44 44 Purchased Property Services 704 704 145 (559) Other Purchased Services 5,301 5,301 5,047 (254) Total Traffic Signs/Markings 161,885 162,239 142,342 (19,897) Traffic Signals Salaries and Benefits 275,453 277,141 290,123 12,982 Supplies 8,203 8,203 5,864 (2,339) Maintenance 61,608 61,608 59,000 (2,608) Purchased Professional Services 1,560 1,560 43 (1,517) Purchased Property Services 103,173 103,173 83,877 (19,296) Other Purchased Services 23,986 23,986 21,415 (2,571) Total Traffic Signals 473,983 475,671 460,322 (15,349) Engineering Salaries and Benefits 568,450 571,129 500,096 (71,033) Supplies 5,255 5,255 15,574 10,319 Maintenance 13,230 13,230 10,160 (3,070) Purchased Professional Services 84,198 84,198 45,932 (38,266) Purchased Property Services 8,998 8,998 7,380 (1,618) Other Purchased Services 26,849 26,849 25,911 (938) Capital Outlay 0 0 4,619 4,619 Total Engineering 706,980 709,659 609,672 (99,987) (Continued) 86 CITY OF COLLEGE STATION, TEXAS GENERAL FUND SCHEDULE OF EXPENDITURES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2002 (Continued) Original Budget Revised Budget Actual Variance Over (Under) Total Public Works 5,504,843$ 5,551,975$ 5,346,269$ (205,706)$ Parks and Recreation Parks Administration Salaries and Benefits 497,099 500,098 513,048 12,950 Supplies 16,510 16,510 16,146 (364) Maintenance 11,330 11,330 11,071 (259) Purchased Professional Services 0 8,000 5,400 (2,600) Purchased Property Services 2,330 2,330 2,876 546 Other Purchased Services 35,870 35,870 34,144 (1,726) Capital Outlay 0 80,000 0 (80,000) Contributions 0 0 73,366 73,366 Total Parks Administration 563,139 654,138 656,051 1,913 Recreation Salaries and Benefits 466,875 468,377 486,223 17,846 Supplies 132,097 132,097 113,801 (18,296) Maintenance 15,207 15,207 14,878 (329) Purchased Professional Service 129,410 129,410 103,322 (26,088) Purchased Property Services 105,280 105,280 87,261 (18,019) Other Purchased Services 121,504 121,504 121,456 (48) Other 21,710 21,710 18,462 (3,248) Total Recreation 992,083 993,585 945,403 (48,182) Special Facilities Salaries and Benefits 1,116,040 1,119,889 1,202,329 82,440 Supplies 136,450 138,550 129,130 (9,420) Maintenance 331,788 417,866 169,708 (248,158) Purchased Professional Services 43,076 46,606 23,613 (22,993) Purchased Property Services 129,098 130,298 119,037 (11,261) Other Purchased Services 111,503 111,503 103,501 (8,002) Capital Outlay 4,000 4,000 3,560 (440) Total Special Facilities 1,871,955 1,968,712 1,750,878 (217,834) (Continued) 87 CITY OF COLLEGE STATION, TEXAS GENERAL FUND SCHEDULE OF EXPENDITURES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2002 (Continued) Original Budget Revised Budget Actual Variance Over (Under) Parks Maintenance Salaries and Benefits 1,025,055$ 1,032,813$ 1,009,440$ (23,373)$ Supplies 160,740 160,740 99,405 (61,335) Maintenance 166,790 166,790 169,219 2,429 Purchased Professional Services 2,442 2,442 2,495 53 Purchased Property Services 190,276 190,276 199,941 9,665 Other Purchased Services 86,775 86,775 84,012 (2,763) Capital Outlay 142,290 173,528 192,653 19,125 Total Parks Maintenance 1,774,368 1,813,364 1,757,165 (56,199) Forestry Salaries and Benefits 464,701 468,369 479,892 11,523 Supplies 23,072 23,072 27,328 4,256 Maintenance 58,961 58,961 58,396 (565) Purchased Professional Services 271,788 271,788 204,692 (67,096) Purchased Property Services 44,102 44,102 30,829 (13,273) Other Purchased Services 32,292 32,292 34,549 2,257 Total Forestry 894,916 898,584 835,686 (62,898) Total Parks and Recreation 6,096,461 6,328,383 5,945,183 (383,200) Office of Technology and Information Services Administration Salaries and Benefits 327,802 329,473 323,655 (5,818) Supplies 6,400 6,400 8,668 2,268 Maintenance 7,020 7,020 7,020 0 Purchased Professional Services 152,000 152,000 42,619 (109,381) Purchased Property Services 8,419 8,419 13,139 4,720 Other Purchased Services 36,195 36,195 34,443 (1,752) Total Administration 537,836 539,507 429,544 (109,963) Geographic Information Systems Salaries and Benefits 119,497 120,162 109,537 (10,625) Supplies 3,612 3,612 22,236 18,624 Maintenance 1,040 1,040 1,040 0 Purchased Professional Services 77,944 77,944 55,131 (22,813) Purchased Property Services 651 651 689 38 Other Purchased Services 9,647 9,647 16,470 6,823 (Continued) 88 CITY OF COLLEGE STATION, TEXAS GENERAL FUND SCHEDULE OF EXPENDITURES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2002 (Continued) Original Budget Revised Budget Actual Variance Over (Under) Capital Outlay 0$ 0$ 6,675$ 6,675$ Total Geographic Information Services 212,391 213,056 211,778 (1,278) Management Information Services Salaries and Benefits 892,612 897,671 907,612 9,941 Supplies 114,938 114,938 227,352 112,414 Maintenance 416,082 416,082 397,491 (18,591) Purchased Professional Services 10,000 10,000 12,603 2,603 Purchased Property Services 15,118 15,118 16,850 1,732 Other Purchased Services 39,497 39,497 36,644 (2,853) Capital Outlay 186,275 186,275 55,921 (130,354) Total Management Information Services 1,674,522 1,679,581 1,654,473 (25,108) Total Office of Technology and Information Services 2,424,749 2,432,144 2,295,795 (136,349) Library Services Supplies 350 350 318 (32) Maintenance 5,670 5,670 5,605 (65) Purchased Professional Services 671,865 671,865 622,843 (49,022) Purchased Property Services 33,984 33,984 32,446 (1,538) Other Purchased Services 4,525 4,525 9,605 5,080 Capital Outlay 68,000 68,000 63,265 (4,735) Total Library Services 784,394 784,394 734,082 (50,312) Nondepartmental Operating Transfers Out 0 478,091 480,190 2,099 Contributions 207,998 207,998 208,485 487 Other 210,000 210,000 76,299 (133,701) Capital Outlay 150,500 150,500 150,000 (500) Contingency 225,000 89,565 0 (89,565) Total Nondepartmental 793,498 1,136,154 914,974 (221,180) Subtotal 38,346,833 39,319,423 37,660,385 (1,659,038) Less Reimbursed Administrative (5,897,958)(5,897,958)(5,875,968)21,990 General Fund Expenditures and Other Financing uses 32,448,875 33,421,465 31,784,417 (1,637,048) (Continued) 89 CITY OF COLLEGE STATION, TEXAS GENERAL FUND SCHEDULE OF EXPENDITURES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2002 (Continued) Original Budget Revised Budget Actual Variance Over (Under) Economic Development Fund Purchased Professional Services 0$ 0$ 24,152$ 24,152$ Other Purchased Services 0 0 7,705 7,705 Contributions 0 0 50,000 50,000 Other 900,000 900,000 40,217 (859,783) Total Economic Development Fund 900,000 900,000 122,074 (777,926) Parks Xtra Education Fund Supplies 12,980 12,980 6,689 (6,291) Purchased Professional Services 40,000 40,000 34,449 (5,551) Purchased Property Services 2,000 2,000 1,139 (861) Other Purchased Services 23,650 23,650 15,177 (8,473) Reimbursed Administrative 26,735 26,735 26,735 0 Total Parks Xtra Education Fund 105,365 105,365 84,189 (21,176) Police Seizure Fund Supplies 7,000 7,000 7,259 259 Purchased Professional Services 0 0 6,000 6,000 Other Purchased Services 0 0 78 78 Capital Outlay 4,000 4,000 4,030 30 Total Police Seizure Fund 11,000 11,000 17,367 6,367 Court Technology Fee Fund Supplies 0 0 2,084 2,084 Capital Outlay 192,000 202,600 35,596 (167,004) Total Court Technology Fee Fund 192,000 202,600 37,680 (164,920) Court Security Fee Fund Capital Outlay 15,000 15,000 0 (15,000) Reimbursed Administrative 66,100 66,100 32,356 (33,744) Total Court Security Fee Fund 81,100 81,100 32,356 (48,744) Court Efficiency Time Payment Fee Fund Purchased Professional Services 0 0 500 500 Total Court Efficiency Time Payment Fee Fund 0 0 500 500 Total General Fund Expenditures and Other Financing Uses 33,738,340$ 34,721,530$ 32,078,583$ (2,642,947)$ (Continued) 90 91 SPECIAL REVENUE FUNDS Special revenue funds are used to account for specific revenues that are legally restricted to expenditures for particular purposes. Community Development - to account for funds granted to the City by the Federal Department of Housing and Urban Development for use on various community improvement projects. Convention Center - to account for the receipt and expenditure of funds received by the City in the operation and maintenance of a convention center. Revenues associated with this fund are derived from the hotel and motel occupancy tax and convention center rentals. Hotel/Motel Tax - to account for the receipt and expenditure of funds received by the City from the assessment of hotel and motel occupancy tax. Usage of funds is restricted to the construction and maintenance of convention and civic facilities and to the promotion of tourism and arts within the City. Melrose Apartment Tax Increment Financing District - to account for the receipt and expenditure of funds received by the City from the creation of a tax increment financing district for the Melrose Apartments. Parks Escrow - to account for the receipt and expenditure of funds received by the City from residential land developers, who dedicate land, or money in lieu of land, for use in the development of neighborhood parks in residential areas. Wolf Pen Creek Tax Increment Financing District - to account for the receipt and expenditure of funds received by the City from the creation of a tax increment financing district for the Wolf Pen Creek area. CITY OF COLLEGE STATION, TEXAS SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET SEPTEMBER 30, 2002 (With comparative totals for the fiscal year ended September 30, 2001) Melrose Apartment Tax Increment Community Development Convention Center Hotel/Motel Financing District Current Assets Equity in Cash and Cash Equivalents 305,296$ 4,766,566$ 911,829$ 51,224$ Equity in Investment 257,981 4,027,836 770,512 43,285 Receivables Accrued Interest 0 46,823 9,047 315 Grants 184,321 0 0 0 Accounts 0 0 6,669 0 Loans 85,393 0 0 0 Less Allowance for Uncollectable Accounts 0 0 (860)0 Total Assets 832,991$ 8,841,225$ 1,697,197$ 94,824$ Liabilities and Fund Balances Liabilities Accounts Payable 32,315$ 24,196$ 21,000$ 0$ Retainage Payable 11,221 0 0 0 Advance from Other Funds 0 0 200,000 0 Refundable Deposits 0 0 19,044 0 Accrued Liabilities (2,528)0 81 0 Other Deferred Revenues 85,379 0 3,959 0 Total Liabilities 126,387 24,196 244,084 0 Fund Balances Reserved Reserved for Encumbrances 397,848 1,681,719 82,124 0 Unreserved Undesignated 308,756 7,135,310 1,370,989 94,824 Total Fund Balances 706,604 8,817,029 1,453,113 94,824 Total Liabilities and Fund Balances 832,991$ 8,841,225$ 1,697,197$ 94,824$ 92 Wolf Pen Creek Tax Increment Totals Parks Escrow Financing District 2002 2001 711,411$ 1,757,730$ 8,504,056$ 6,905,374$ 601,156 1,485,314 7,186,084 7,358,980 7,507 15,957 79,649 150,031 0 0 184,321 187,977 0 0 6,669 11,463 0 0 85,393 94,525 0 0 (860)(2,698) 1,320,074$ 3,259,001$ 16,045,312$ 14,705,652$ 0$ 19,918$ 97,429$ 176,830$ 0 14,121 25,342 0 0 0 200,000 200,000 0 0 19,044 17,387 0 0 (2,447)(535) 0 0 89,338 98,470 0 34,039 428,706 492,152 2,950 991,810 3,156,451 1,463,995 1,317,124 2,233,152 12,460,155 12,749,505 1,320,074 3,224,962 15,616,606 14,213,500 1,320,074$ 3,259,001$ 16,045,312$ 14,705,652$ 93 CITY OF COLLEGE STATION, TEXAS SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES For the Fiscal Year Ended September 30, 2002 (With comparative totals for the fiscal year ended September 30, 2001) Melrose Community Development Convention Center Hotel/Motel Tax Apartment Tax Increment Financing District Revenues Taxes 0$ 0$ 1,926,009$ 77,875$ Charges for Services 0 0 25,341 0 Intergovernmental 2,139,541 0 0 0 Fines, Forfeits and Penalties 0 0 0 0 Investment Income 0 329,134 61,893 3,824 Rents and Royalties 0 0 114,668 0 Loan Repayments 9,626 0 0 0 Other 36,683 0 18,494 0 Total Revenues 2,185,850 329,134 2,146,405 81,699 Expenditures Current General Government 0 0 202,860 0 Development Services 0 0 5,031 0 Parks and Recreation 0 0 0 0 Community Development Block Grant 538,901 0 0 0 Home Grant 626,848 0 0 0 Housing Rehabilitation 0 0 0 0 Optional Relocation 0 0 0 0 Clearance and Demolition 0 0 0 0 Acquisitions 0 0 0 0 Interim Assistance 0 0 0 0 Homebuyer's Assistance 0 0 0 0 Commercial Rehabilitation 0 0 0 0 Commercial Development Housing Organization 0 0 0 0 External Public Facilities 0 0 0 0 Reimbursed Administrative 649,434 50,000 549,862 0 Contributions 0 0 1,140,400 0 Other 0 6,549 16,438 0 Capital Outlay 0 567,220 0 200,000 Debt Service Debt Issuance Cost 0 0 0 0 Total Expenditures 1,815,183 623,769 1,914,591 200,000 Excess (Deficiency) of Revenues Over (Under) Expenditures 370,667 (294,635)231,814 (118,301) Other Financing Sources (Uses) Proceeds from Long-Term Debt Issuance 0 0 0 0 Operating Transfers In 0 0 0 0 Operating Transfer Out (536,678)(127,529)(148,052)0 Total Other Financing Sources (Uses)(536,678)(127,529)(148,052)0 Excess (Deficiency) of Revenues and Other Financing Sources Over (Under) Expenditures and Other Financing Uses (166,011)(422,164)83,762 (118,301) Fund Balances, October 1 872,615 9,239,193 1,369,351 213,125 Fund Balances, September 30 706,604$ 8,817,029$ 1,453,113$ 94,824$ 94 Wolf Pen Totals Parks Escrow Creek Tax Increment Financing District 2002 2001 0$ 430,233$ 2,434,117$ 2,779,714$ 0 0 25,341 9,900 0 0 2,139,541 1,874,595 0 0 0 2,667 94,750 89,847 579,448 678,272 0 0 114,668 118,791 0 0 9,626 9,979 209,347 0 264,524 392,439 304,097 520,080 5,567,265 5,866,357 0 0 202,860 0 0 0 5,031 174,385 0 0 0 10,572 0 0 538,901 0 0 0 626,848 0 0 0 0 64,708 0 0 0 382,066 0 0 0 7,500 0 0 0 53,188 0 0 0 1,941 0 0 0 83,561 0 0 0 8,217 0 0 0 32,122 0 0 0 130,000 15,000 0 1,264,296 1,126,284 0 0 1,140,400 1,250,529 8,233 519 31,739 4,214 53,317 521,088 1,341,625 418,248 0 12,000 12,000 0 76,550 533,607 5,163,700 3,747,535 227,547 (13,527)403,565 2,118,822 0 2,316,800 2,316,800 0 0 120,000 120,000 3,650,000 (120,000)(505,000)(1,437,259)(478,693) (120,000)1,931,800 999,541 3,171,307 107,547 1,918,273 1,403,106 5,290,129 1,212,527 1,306,689 14,213,500 8,923,371 1,320,074$ 3,224,962$ 15,616,606$ 14,213,500$ 95 CITY OF COLLEGE STATION, TEXAS COMMUNITY DEVELOPMENT FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2002 Original Budget Revised Budget Actual Variance Over (Under) Revenues Intergovernmental Community Development Block Grant 2,799,889$ 2,799,889$ 1,410,624$ (1,389,265)$ Home Grant 1,821,620 1,821,620 728,917 (1,092,703) Loan Repayments 0 0 8,762 8,762 Interest on Loans 0 0 864 864 Other 20,000 20,000 36,681 16,681 Total Revenues 4,641,509 4,641,509 2,185,848 (2,455,661) Expenditures Community Development Block Grant 2,339,397 2,339,397 538,901 (1,800,496) Reimbursed Administrative 460,492 460,492 0 (460,492) Home Grant 1,623,439 1,623,439 626,848 (996,591) Reimbursed Administrative 200,181 200,181 649,434 449,253 Affordable Housing 198,127 198,127 0 (198,127) Total Expenditures 4,821,636 4,821,636 1,815,183 (3,006,453) Excess (Deficiency) of Revenues Over (Under) Expenditures (180,127)(180,127)370,665 550,792 Other Financing Uses Operating Transfers Out 0 0 (536,678)(536,678) Total Other Financing Uses 0 0 (536,678)(536,678) Excess (Deficiency) of Revenues and Other Financing Sources Over (Under) Expenditures (180,127)(180,127)(166,013)14,114 Fund Balances, October 1 261,448 261,448 442,105 180,657 Fund Balances, September 30 81,321$ 81,321$ 276,092$ 194,771$ 96 97 CITY OF COLLEGE STATION, TEXAS CONVENTION CENTER FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2002 Original Budget Revised Budget Actual Variance Over (Under) Revenues Investment Income 400,000$ 400,000$ 423,104$ 23,104$ Total Revenues 400,000 400,000 423,104 23,104 Expenditures Current Purchased Professional Services 0 0 6,210 6,210 Other Purchased Services 0 0 338 338 Reimbursed Administrative 50,000 50,000 50,000 0 Debt Service Principal Retirement 230,000 230,000 0 (230,000) Capital Outlay 3,500,000 3,500,000 567,220 (2,932,780) Total Expenditures 3,780,000 3,780,000 623,768 (3,156,232) Excess (Deficiency) of Revenues Over (Under) Expenditures (3,380,000)(3,380,000)(200,664)3,179,336 Other Financing Uses Operating Transfers Out 0 0 (127,529)(127,529) Total Other Financing Uses 0 0 (127,529)(127,529) Excess (Deficiency) of Revenues Over (Under) Expenditures and Other Financing Uses (3,380,000)(3,380,000)(328,193)3,051,807 Fund Balances, October 1 5,636,497 5,636,497 9,124,542 3,488,045 Fund Balances, September 30 2,256,497$ 2,256,497$ 8,796,349$ 6,539,852$ 97 CITY OF COLLEGE STATION, TEXAS HOTEL/MOTEL TAX FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2002 Original Budget Revised Budget Actual Variance Over (Under) Revenues Taxes 0$ 1,876,000$ 1,926,009$ 50,009$ Charges for Services 0 13,000 25,341 12,341 Investment Income 0 82,000 79,577 (2,423) Rents and Royalties 0 116,000 114,668 (1,332) Other 0 21,000 17,822 (3,178) Total Revenues 0 2,108,000 2,163,417 55,417 Expenditures Current Development Services 0 267,600 196,062 (71,538) Public Relations 0 6,200 6,798 598 Financial Services 0 0 5,031 5,031 Reimbursed Administrative 0 608,256 549,862 (58,394) Contributions 0 1,140,400 1,140,400 0 Other 0 100,000 16,435 (83,565) Debt Service Principal Retirement 0 40,000 0 (40,000) Contingency 0 20,000 0 (20,000) Total Expenditures 0 2,182,456 1,914,588 (267,868) Excess (Deficiency) of Revenues Over (Under) Expenditures 0 (74,456)248,829 323,285 Other Financing Uses Operating Transfers Out 0 (748,052)(148,052)(600,000) Total Other Financing Uses 0 (748,052)(148,052)600,000 Excess (Deficiency) of Revenues Over (Under) Expenditures and Other Financing Uses 0 (822,508)100,777 923,285 Fund Balances, October 1 0 400,618 1,353,645 953,027 Fund Balances (Deficits), September 30 0$ (421,890)$ 1,454,422$ 1,876,312$ 98 CITY OF COLLEGE STATION, TEXAS MELROSE APARTMENT TAX INCREMENT FINANCING DISTRICT FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2002 Original Budget Revised Budget Actual Variance Over (Under) Revenues Taxes 204,419$ 204,419$ 77,875$ (126,544)$ Investment Income 7,700 7,700 5,558 (2,142) Total Revenues 212,119 212,119 83,433 (128,686) Expenditures Capital Outlay 225,000 225,000 200,000 (25,000) Total Expenditures 225,000 225,000 200,000 (25,000) Deficiency of Revenues Under Expenditures (12,881)(12,881)(116,567)(103,686) Fund Balances (Deficits), October 1 (50,000)(50,000)209,727 259,727 Fund Balances (Deficits), September 30 (62,881)$ (62,881)$ 93,160$ 156,041$ 99 CITY OF COLLEGE STATION, TEXAS PARKS ESCROW FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2002 Original Budget Revised Budget Actual Variance Over (Under) Revenues Investment Income 35,000$ 35,000$ 106,822$ 71,822$ Other 50,000 50,000 209,347 159,347 Total Revenues 85,000 85,000 316,169 231,169 Expenditures Current Reimbursed Administrative 15,000 15,000 15,000 0 Other 0 0 700 700 Capital Outlay 281,389 281,389 60,697 (220,692) Total Expenditures 296,389 296,389 76,397 (219,992) Excess (Deficiency) of Revenues Over (Under ) Expenditures (211,389)(211,389)239,772 451,161 Other Financing Uses: Operating Transfers Out (120,000)(120,000)(120,000)0 Total Other Financing Uses (120,000)(120,000)(120,000)0 Excess (Deficiency) of Revenues Over (Under) Expenditures and Other Financing Uses (331,389)(331,389)119,772 451,161 Fund Balances, October 1 75,229 74,529 1,200,086 1,125,557 Fund Balances, September 30 (256,160)$ (256,860)$ 1,319,858$ 1,576,718$ 100 CITY OF COLLEGE STATION WOLF PEN CREEK TAX INCREMENT FINANCING DISTRICT FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2002 Original Budget Revised Budget Actual Variance Over (Under) Revenues Taxes 422,000$ 422,000$ 430,233$ 8,233$ Investment Income 16,500 16,500 102,250 85,750 Total Revenues 438,500 438,500 532,483 93,983 Expenditures Current: Parks and Recreation 1,400 1,400 518 (882) Debt Issuance Cost 0 0 12,000 12,000 Capital Outlay 3,286,300 3,286,300 511,147 (2,775,153) Total Expenditures 3,287,700 3,287,700 523,665 (2,764,035) Excess (Deficiency) of Revenues Over (Under) Expenditures (2,849,200)(2,849,200)8,818 2,858,018 Other Financing sources (Uses): Proceeds from Long Term Debt Issuance 2,300,000 2,300,000 2,316,800 16,800 Operating Transfers In 120,000 120,000 120,000 0 Operating Transfers Out 0 0 (505,000)(505,000) Total Other Financing Sources (Uses)2,420,000 2,420,000 1,931,800 (488,200) Excess (Deficiency) of Revenues and Other Financing Sources Over (Under) Expenditures and Other Financing Uses (429,200)(429,200)1,940,618 2,369,818 Fund Balances, October 1 83,889 83,889 1,290,945 1,207,056 Fund Balances, September 30 (345,311)$ (345,311)$ 3,231,563$ 3,576,874$ 101 103 DEBT SERVICE FUND The Debt Service Fund is used to account for the accumulation of resources and payment of general obligation bond principal and interest from governmental resources and special assessment bond principal and interest from special assessment levies when the government is obligated in some manner for the payment. CITY OF COLLEGE STATION, TEXAS DEBT SERVICE FUND SCHEDULE OF REVENUES AND EXPENDITURES CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2002 Original Budget Revised Budget Actual Variance Over (Under) Revenues Taxes 7,265,601$ 7,265,601$ 7,160,962$ (104,639)$ Investment Income 350,000 350,000 186,750 (163,250) Accrued Bond Interest 0 0 110,469 110,469 Other 0 0 1,013 1,013 Total Revenues 7,615,601 7,615,601 7,459,194 (156,407) Expenditures Debt Service Principal Payments 5,880,000 5,880,000 5,950,000 70,000 Interest Payments 3,168,263 3,168,263 3,425,391 257,128 Fiscal Charges 6,000 6,000 8,753 2,753 Debt Issuance Cost 9,000 9,000 0 (9,000) Total Expenditures 9,063,263 9,063,263 9,384,144 320,881 Excess (Deficiency) of Revenues Over (Under) Expenditures (1,447,662)(1,447,662)(1,924,950)(477,288) Other Financing Sources Operating Transfers In 1,023,410 1,023,410 753,672 (269,738) Total Other Financing Sources 1,023,410 1,023,410 753,672 (269,738) Deficiency of Revenues and Other Financing Sources Under Expenditures (424,252)(424,252)(1,171,278)(747,026) Fund Balances, October 1 3,657,717 3,657,717 3,548,004 (109,713) Fund Balances, September 1 3,233,465$ 3,233,465$ 2,376,726$ (856,739)$ 105 107 CAPITAL PROJECTS FUNDS Capital Projects Funds are used to account for the acquisition and construction of major capital improvements other than those financed by proprietary funds and trust funds. Business Park - to account for the cost of street, water, and sewer improvements at the College Station Business Park. Drainage Projects - to account for the cost of drainage improvements made with funds provided by a drainage utility fee and proceeds from the sale of general obligation funds. General Government Projects - to account for the cost of new building construction and building improvements made with funds provided by proceeds from the sale of general obligation bonds. Parks Projects - to account for the costs of new parks and improvements to existing parks made with funds provided from the sale of general obligation bonds. Streets Projects - to account for the costs of new street construction, street improvements, and traffic signalization made with funds provided by proceeds from the sale of general obligation bonds. CITY OF COLLEGE STATION, TEXAS CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET SEPTEMBER 30, 2002 (With comparative totals for the fiscal year ended September 30, 2001) Business Park Drainage Projects General Government Projects Parks Projects Current Assets Equity in Cash and Cash Equivalents 1,255,673$ 3,498,273$ 3,514,028$ 508,575$ Equity in Investment 1,061,066 2,956,105 2,969,418 429,756 Receivables Accrued Interest 12,267 33,883 35,907 5,265 Grants 0 0 0 0 Accounts 0 122,684 0 0 Less Allowance for Uncollectible Accounts 0 (10,340)0 0 Total Assets 2,329,006$ 6,600,605$ 6,519,353$ 943,596$ Liabilities and Fund Balances Liabilities Accounts Payable 19,742$ 21,257$ 224,428$ 37,630$ Retainage Payable 0 18,755 35,475 147,744 Accrued Liabilities 0 0 0 244 Customer Construction Advances 0 0 0 0 Total Liabilities 19,742 40,012 259,903 185,618 Fund Balances Reserved Reserved for Encumbrances 12,583 305,619 2,900,528 30,325 Reserved for Capital Projects 2,296,681 6,254,974 3,358,922 727,653 Total Fund Balances 2,309,264 6,560,593 6,259,450 757,978 Total Liabilities and Fund Balances 2,329,006$ 6,600,605$ 6,519,353$ 943,596$ 108 Totals Streets Projects 2002 2001 11,984,916$ 20,761,465$ 14,192,278$ 10,127,475 17,543,820 15,124,554 119,998 207,320 338,477 37,743 37,743 178,512 246,774 369,458 116,025 0 (10,340)(8,209) 22,516,906$ 38,909,466$ 29,941,637$ 513,359$ 816,416$ 574,813$ 160,003 361,977 121,443 0 244 244 25,000 25,000 69,496 698,362 1,203,637 765,996 1,181,552 4,430,607 3,732,474 20,636,992 33,275,222 25,443,167 21,818,544 37,705,829 29,175,641 22,516,906$ 38,909,466$ 29,941,637$ 109 CITY OF COLLEGE STATION, TEXAS CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES For the Fiscal Year Ended September 30, 2002 (With comparative totals for the fiscal year ended September 30, 2001) Business Park Drainage Projects General Government Projects Parks Projects Revenues Charges for Services 0$ 0$ 0$ 67,525$ Intergovernmental 0 0 0 0 Special Assessment 0 982,760 0 0 Investment Income 84,138 232,168 218,820 74,057 Contributions 0 0 105 0 Reimbursed Expenditures 0 0 0 0 Other 74 0 450 0 Total Revenues 84,212 1,214,928 219,375 141,582 Expenditures Current General Government 0 0 0 0 Reimbursed Administrative 70,000 560,000 55,000 55,000 Other 501 15,606 13,749 0 Capital Outlay 139,626 622,820 1,608,050 3,841,110 Debt Service Issuance Costs 0 5,400 19,200 900 Total Expenditures 210,127 1,203,826 1,695,999 3,897,010 Excess (Deficiency) of Revenues Over (Under) Expenditures (125,915)11,102 (1,476,624)(3,755,428) Other Financing Sources (Uses) Proceeds from Long Term Debt Issuance 0 785,000 3,346,800 129,000 Sale of General Fixed Assets 0 0 0 0 Operating Transfers In 0 0 12,231 89,000 Operating Transfer Out 0 0 (89,000)0 Total Other Financing Sources (Uses)0 785,000 3,270,031 218,000 Excess (Deficiency) of Revenues and Other Financing Sources Over (Under) Expenditures and Other Financing Uses (125,915)796,102 1,793,407 (3,537,428) Fund Balances, October 1 2,435,179 5,764,491 4,466,043 4,295,406 Fund Balances, September 30 2,309,264$ 6,560,593$ 6,259,450$ 757,978$ 110 Totals Streets Projects 2002 2001 0$ 67,525$ 51,035$ 9,761 9,761 879,648 0 982,760 944,286 702,874 1,312,057 1,791,185 329,664 329,769 379,920 0 0 527,500 0 524 8,210 1,042,299 2,702,396 4,581,784 318,675 318,675 0 260,000 1,000,000 622,767 25,291 55,147 254,779 5,489,358 11,700,964 9,090,898 78,000 103,500 77,206 6,171,324 13,178,286 10,045,650 (5,129,025)(10,475,890)(5,463,866) 13,478,600 17,739,400 7,292,870 0 0 556,580 1,254,447 1,355,678 4,400,773 0 (89,000)(305,000) 14,733,047 19,006,078 11,945,223 9,604,022 8,530,188 6,481,357 12,214,522 29,175,641 22,694,284 21,818,544$ 37,705,829$ 29,175,641$ 111 CITY OF COLLEGE STATION, TEXAS BUSINESS PARK FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (DEFICITS) BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2002 Original Budget Revised Budget Actual Variance Over (Under) Revenues Investment Income 35,000$ 35,000$ 109,719$ 74,719$ Other 0 0 74 74 Total Revenues 35,000 35,000 109,793 74,793 Expenditures Current Reimbursed Administrative 70,000 70,000 70,000 0 Other 0 0 500 500 Capital Outlay 225,000 225,000 139,626 (85,374) Total Expenditures 295,000 295,000 210,126 (84,874) Excess (Deficiency) of Revenues Over (Under) Expenditures (260,000)(260,000)(100,333)159,667 Fund Balances, October 1 41,392 41,392 2,399,652 2,358,260 Fund Balances (Deficits), September 30 (218,608)$ (218,608)$ 2,299,319$ 2,517,927$ 112 CITY OF COLLEGE STATION, TEXAS DRAINAGE PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2002 Original Budget Revised Budget Actual Variance Over (Under) Revenues Special Assessment 987,300$ 987,300$ 981,673$ (5,627)$ Investment Income 200,000 200,000 289,286 89,286 Total Revenue 1,187,300 1,187,300 1,270,959 83,659 Expenditures Current Purchased Professional Services 0 0 8,360 8,360 Reimbursed Administrative 560,000 560,000 560,000 0 Debt Issuance Costs 10,000 10,000 5,400 (4,600) Capital Outlay 835,000 835,000 616,982 (218,018) Total Expenditures 1,405,000 1,405,000 1,190,742 (214,258) Excess (Deficiency) of Revenues Over (Under) Expenditures (217,700)(217,700)80,217 297,917 Other Financing Sources Proceeds from Long Term Debt Issuance 785,000 785,000 785,000 0 Total Other Financing Sources 785,000 785,000 785,000 0 Excess of Revenues Over Expenditures and Other Financing Sources 567,300 567,300 865,217 297,917 Fund Balances, October 1 18,024 18,024 5,719,258 5,701,234 Fund Balances, September 30 585,324$ 585,324$ 6,584,475$ 5,999,151$ 113 CITY OF COLLEGE STATION, TEXAS GENERAL GOVERNMENT PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2002 Original Budget Revised Budget Actual Variance Over (Under) Revenues Investment Income 75,000$ 75,000$ 264,409$ 189,409$ Contributions 0 0 105 105 Other 0 0 450 450 Total Revenues 75,000 75,000 264,964 189,964 Expenditures Current Fiscal Services 0 0 1,517 1,517 Reimbursed Administrative 55,000 55,000 55,000 0 Other 0 0 12,231 12,231 Capital Outlay 1,097,000 1,778,000 1,600,560 (177,440) Debt Service Issuance Costs 23,500 23,500 19,200 (4,300) Total Expenditures 1,175,500 1,856,500 1,688,508 (167,992) Excess (Deficiency) of Revenues Over (Under) Expenditures (1,100,500)(1,781,500)(1,423,544)357,956 Other Financing Sources (Uses) Proceeds from Long Term Debt Issuance 1,877,000 1,877,000 3,346,800 1,469,800 Operating Transfers In 0 0 12,231 12,231 Operating Transfers Out 0 0 (89,000)(89,000) Total Other Financing Sources (Uses)1,877,000 1,877,000 3,270,031 1,393,031 Excess of Revenues Over Expenditures and Other Financing Sources 776,500 95,500 1,846,487 1,750,987 Fund Balances, October 1 4,469,697 4,469,697 4,469,697 0 Fund Balances, September 30 5,246,197$ 4,565,197$ 6,316,184$ 1,750,987$ 114 CITY OF COLLEGE STATION, TEXAS PARKS PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2002 Original Budget Revised Budget Actual Variance Over (Under) Revenues Charges for Services 50,000$ 50,000$ 67,525$ 17,525$ Investment Income 30,000 30,000 120,473 90,473 Total Revenues 80,000 80,000 187,998 107,998 Expenditures Current Reimbursed Administrative 55,000 55,000 55,000 0 Capital Outlay 910,000 1,108,000 3,828,191 2,720,191 Debt Service Issuance Cost 10,000 10,000 900 (9,100) Total Expenditures 975,000 1,173,000 3,884,091 2,711,091 Deficiency of Revenues Under Expenditures (895,000)(1,093,000)(3,696,093)(2,603,093) Other Financing Sources Proceeds from Long Term Debt Issuance 129,000 129,000 129,000 0 Operating Transfers In 0 0 89,000 89,000 Total Other Financing Sources 129,000 129,000 218,000 89,000 Deficiency of Revenues and Other Financing Sources Under Expenditures (766,000)(964,000)(3,478,093)(2,514,093) Fund Balances, October 1 4,249,032 4,249,032 4,249,032 0 Fund Balances, September 30 3,483,032$ 3,285,032$ 770,939$ (2,514,093)$ 115 CITY OF COLLEGE STATION, TEXAS STREETS PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2002 Original Budget Revised Budget Actual Variance Over (Under) Revenues Intergovernmental 272,000$ 272,000$ (4,311)$ (276,311)$ Investment Income 250,000 250,000 834,977 584,977 Contributions 0 0 328,284 328,284 Total Revenues 522,000 522,000 1,158,950 636,950 Expenditures Current General Government 0 50,000 356,419 306,419 Reimbursed Administrative 260,000 260,000 260,000 0 Other 240,000 330,000 11,219 (318,781) Capital Outlay 2,972,575 12,579,932 5,381,448 (7,198,484) Debt Service Issuance Costs 50,000 50,000 78,000 28,000 Total Expenditures 3,522,575 13,269,932 6,087,086 (7,182,846) Excess (Deficiency) of Revenues Over (Under) Expenditures (3,000,575)(12,747,932)(4,928,136)7,819,796 Other Financing Sources Proceeds form Long Term Debt Issuance 13,769,000 13,769,000 13,478,600 (290,400) Operating Transfers In 721,325 721,325 1,254,447 533,122 Total Other Financing Sources 14,490,325 14,490,325 14,733,047 242,722 Excess of Revenues and Other Financing Sources Over Expenditures 11,489,750 1,742,393 9,804,911 8,062,518 Fund Balances, October 1 12,225,352 12,225,352 12,225,352 0 Fund Balances, September 30 23,715,102$ 13,967,745$ 22,030,263$ 8,062,518$ 116 117 ENTERPRISE FUNDS Enterprise funds are used to account for operations that are financed and operated in a manner similar to private business enterprises. In these funds, the intent of the government's council is that costs of providing goods or services to the general public on a continuing basis will be financed or recovered primarily through user charges, or where the government's council has decided that periodic determination of net income is appropriate for accountability purposes. Electric - to account for revenues and expenses related to the operation and maintenance of the electric systems of the City. All activities necessary to provide such services are accounted for in this fund and include, but are not limited to, administration, operations, maintenance, utility billing and collections, meter reading, and financing and related debt service. Water - to account for revenues and expenses related to the operation and maintenance of the water systems of the City. All activities necessary to provide such services are accounted for in this fund and include, but are not limited to, administration, operations, maintenance, and financing and related debt service. Sewer - to account for revenues and expenses related to the operation and maintenance of the sewer systems of the City. All activities necessary to provide such services are accounted for in this fund and include, but are not limited to, administration, operations, maintenance, and financing and related debt service. Sanitation - to account for all sanitation collection and disposal activities by the City for both residential and commercial residents. Cedar Creek Condominiums - to account for revenues and expenses related to the operation and maintenance of the Cedar Creek Condominiums. Northgate Parking - to account for revenues and expenses related to the operation and maintenance of the Northgate parking garage and parking lot. CITY OF COLLEGE STATION, TEXAS ENTERPRISE FUNDS COMBINING BALANCE SHEET SEPTEMBER 30, 2002 (With comparative totals for the fiscal year ended September 30, 2001) Electric Water Sewer Current Assets Equity in Cash and Cash Equivalents 6,567,188$ 5,573,519$ 1,721,749$ Equity in Investment 5,577,281 4,709,726 1,454,910 Receivables Accrued Interest 64,462 51,392 16,116 Accounts 6,661,457 1,134,855 1,029,921 Escrow 0 0 0 Notes 0 0 0 Other 1,117,669 0 0 Less Allowance for Uncollectable Accounts (1,462,657)(38,325)(70,930) Inventories 947,723 331,485 17,160 Total Current Assets 19,473,123 11,762,652 4,168,926 Restricted Assets Equity in Cash and Cash Equivalents 1,762,637 5,320,980 4,731,718 Equity in Investments 1,489,461 4,496,326 3,998,389 Receivables Accrued Interest 26,671 55,799 47,282 Accounts 422 0 0 Total Restricted Assets 3,279,191 9,873,105 8,777,389 Advance to Other Funds 200,000 0 0 Equity in Joint Venture 0 0 0 Deferred Charges Water Well 0 1,167,075 0 Bond Issuance Costs 240,272 262,472 436,631 Accumulated Amortization (90,400)(1,107,458)(145,990) Total Deferred Charges 149,872 322,089 290,641 Property and Equipment Utility Plant 63,286,640 54,503,955 53,951,532 Buildings 0 898,760 822,954 Machinery and Equipment 225,801 1,030,289 1,357,147 Accumulated Depreciation (19,376,295)(17,593,108)(13,728,525) Construction in Progress 2,851,026 11,452,499 13,614,468 Land 0 514,500 602,517 Total Property and Equipment 46,987,172 50,806,895 56,620,093 Total Assets 70,089,358$ 72,764,741$ 69,857,049$ 118 Totals Sanitation Cedar Creek Condominium Northgate Parking Garage 2002 2001 487,987$ 133,197$ 420,702$ 14,904,342$ 12,946,607$ 412,358 112,554 355,501 12,622,330 13,797,055 5,783 0 4,867 142,620 310,704 570,323 0 61,294 9,457,850 8,506,880 0 200,469 0 200,469 197,989 12,522 0 0 12,522 12,522 0 0 0 1,117,669 1,128,640 (44,082)0 (50)(1,616,044)(1,541,531) 2,816 0 0 1,299,184 1,782,666 1,447,707 446,220 842,314 38,140,942 37,141,532 0 0 0 11,815,335 11,374,462 0 0 0 9,984,176 12,119,706 0 0 0 129,752 232,002 0 0 0 422 0 0 0 0 21,929,685 23,726,170 0 0 0 200,000 200,000 6,289,525 0 0 6,289,525 5,447,202 0 0 0 1,167,075 1,167,075 0 0 0 939,375 839,693 0 0 0 (1,343,848)(1,301,009) 0 0 0 762,602 705,759 0 0 0 171,742,127 150,993,984 0 0 5,608,687 7,330,401 7,324,324 1,259,439 0 81,928 3,954,604 3,927,632 (1,239,598)0 (168,066)(52,105,592)(46,975,789) 0 0 160,751 28,078,744 22,953,489 0 0 672,811 1,789,828 1,745,390 19,841 0 6,356,111 160,790,112 139,969,030 7,757,073$ 446,220$ 7,198,425$ 228,112,866$ 207,189,693$ (Continued) 119 CITY OF COLLEGE STATION, TEXAS ENTERPRISE FUNDS COMBINING BALANCE SHEET SEPTEMBER 30, 2002 (With comparative totals for the fiscal year ended September 30, 2001) (Continued) Electric Water Sewer Liabilities and Fund Equity Current Liabilities Accounts Payable 4,797,457$ 518,478$ 343,142$ Accrued Interest Payable 0 0 0 Retainage Payable 0 16,817 0 Accrued Liabilities 384,582 53,906 56,616 Customer Construction Advances 24,382 55,640 12,130 Other Deferred Revenues 822 0 0 Total Current Liabilities 5,207,243 644,841 411,888 Current Liabilities Payable from Restricted Assets Accounts Payable 4,392,735 331,155 416,919 Accrued Interest Payable 156,741 283,645 373,815 Retainage Payable 0 349,179 508,077 Accrued Liabilities 13,174 0 (3,936) Refundable Deposits 914,409 120,340 0 Revenue Bonds 960,350 1,142,300 1,712,350 Total Current Liabilities Payable from Restricted Assets 6,437,409 2,226,619 3,007,225 Noncurrent Liabilities Revenue Bonds 13,636,500 27,219,150 33,564,350 Unamortized Premium on Bonds (41,757)(32,661)(36,053) Accrued Vacation 118,665 52,773 59,907 Total Noncurrent Liabilities 13,713,408 27,239,262 33,588,204 Total Liabilities 25,358,060 30,110,722 37,007,317 Fund Equity Contributed Capital 3,696,637 14,831,529 13,169,515 Retained Earnings Reserved for Debt Service 3,709,978 613,726 1,320,079 Reserved for Capital Projects 1,652,634 8,544,589 6,440,563 Unreserved 35,672,049 18,664,175 11,919,575 Total Fund Equity 44,731,298 42,654,019 32,849,732 Total Liabilities and Fund Equity 70,089,358$ 72,764,741$ 69,857,049$ 120 Totals Sanitation Cedar Creek Condominium Northgate Parking Garage 2002 2001 53,783$ 142,981$ 1,229$ 5,857,070$ 5,760,729$ 3,942 0 0 3,942 3,940 0 0 0 16,817 271,771 84,859 0 7,763 587,726 537,391 0 0 0 92,152 100,245 0 0 0 822 822 142,584 142,981 8,992 6,558,529 6,674,898 0 0 0 5,140,809 5,655,401 0 0 0 814,201 446,457 0 0 0 857,256 485,247 0 0 0 9,238 13,174 0 0 1,950 1,036,699 1,214,475 0 0 0 3,815,000 3,165,000 0 0 1,950 11,673,203 10,979,754 0 0 0 74,420,000 60,020,000 0 0 0 (110,471)(131,666) 25,675 0 434 257,454 230,539 25,675 0 434 74,566,983 60,118,873 168,259 142,981 11,376 92,798,715 77,773,525 54,900 0 6,963,435 38,716,016 38,716,016 0 0 0 5,643,783 2,606,880 0 0 0 16,637,786 17,993,686 7,533,914 303,239 223,614 74,316,566 70,099,586 7,588,814 303,239 7,187,049 135,314,151 129,416,168 7,757,073$ 446,220$ 7,198,425$ 228,112,866$ 207,189,693$ 121 CITY OF COLLEGE STATION, TEXAS ENTERPRISE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For the Fiscal Year Ended September 30, 2002 (With comparative totals for the fiscal year ended September 30, 2001) Electric Water Sewer Operating Revenues Electric Sales 44,238,340$ 0$ 0$ Water Sales 0 8,144,195 0 Sewer Service 0 0 7,880,400 Garbage Collection Fees 0 0 0 Charges for Services 0 0 0 Other 1,013,497 541,580 323,054 Total Operating Revenues 45,251,837 8,685,775 8,203,454 Operating Expenses Electric Operations 37,679,409 0 0 Salaries and Benefits 0 1,427,944 1,534,905 Supplies 0 131,270 290,885 Maintenance 0 376,735 368,329 Purchased Professional Services 0 204,193 203,489 Purchased Property Services 0 873,488 300,156 Other Purchased Services 0 377,256 218,854 Reimbursed Administrative 0 1,140,615 1,057,500 Depreciation 2,398,907 1,264,261 1,238,525 Other 0 34,140 55,387 Total Operating Expenses 40,078,316 5,829,902 5,268,030 Operating Income 5,173,521 2,855,873 2,935,424 Nonoperating Revenues (Expenses) Investment Income 606,125 779,697 472,723 Reimbursed Expenses 54,031 42,345 0 Grants 0 0 0 Earnings in Joint Venture 0 0 0 Interest Expense (745,655)(1,401,851)(1,842,052) Other, Net 689,896 1,017,912 1,367,487 Total Nonoperating Revenues (Expenses)604,397 438,103 (1,842) Income Before Operating Transfers 5,777,918 3,293,976 2,933,582 Operating Transfers Operating Transfers In 1,241 0 0 Operating Transfers Out (4,574,900)(923,800)(729,500) Total Operating Transfers (4,573,659)(923,800)(729,500) Net Income (Loss)1,204,259 2,370,176 2,204,082 Retained Earnings, October 1 (Restated)39,830,402 25,452,314 17,476,135 Retained Earnings, September 30 41,034,661$ 27,822,490$ 19,680,217$ 122 Totals Sanitation Cedar Creek Condominiums Northgate Parking Garage 2002 2001 0$ 0$ 0$ 44,238,340$ 42,290,635$ 0 0 0 8,144,195 8,072,508 0 0 0 7,880,400 7,045,955 4,280,436 0 0 4,280,436 4,035,385 0 0 452,061 452,061 147,605 26,105 0 0 1,904,236 1,775,758 4,306,541 0 452,061 66,899,668 63,367,846 0 0 0 37,679,409 37,038,395 1,286,990 0 154,454 4,404,293 3,809,295 193,530 0 35,935 651,620 501,632 615,327 0 3,772 1,364,163 1,087,371 101,164 0 49,060 557,906 489,301 1,125,165 0 39,258 2,338,067 2,406,727 658,323 0 65,699 1,320,132 1,285,405 389,731 0 13,000 2,600,846 2,682,178 14,176 0 160,450 5,076,319 4,036,773 8,546 0 76,592 174,665 310,465 4,392,952 0 598,220 56,167,420 53,647,542 (86,411)0 (146,159)10,732,248 9,720,304 38,338 2,481 33,311 1,932,675 3,221,838 0 0 0 96,376 64,716 0 0 0 0 14,800 842,323 0 0 842,323 664,692 0 0 0 (3,989,558)(2,402,956) (17,136)0 76,647 3,134,806 709,883 863,525 2,481 109,958 2,016,622 2,272,973 777,114 2,481 (36,201)12,748,870 11,993,277 0 0 0 1,241 225,000 (306,700)0 (225,000)(6,759,900)(14,278,073) (306,700)0 (225,000)(6,758,659)(14,053,073) 470,414 2,481 (261,201)5,990,211 (2,059,796) 7,063,500 300,758 484,815 90,607,924 92,667,720 7,533,914$ 303,239$ 223,614$ 96,598,135$ 90,607,924$ 123 CITY OF COLLEGE STATION, TEXAS ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS For the Fiscal Year Ended September 30, 2002 (With comparative totals for the fiscal year ended September 30, 2001) (Continued) Electric Water Sewer Cash Flows from Operating Activities: Cash Received from Customers 44,557,992$ 8,640,896$ 8,041,242$ Cash Payments to Suppliers for Goods and Services (35,035,024)(2,945,572)(2,171,825) Cash Payments to Employees for Services (2,064,962)(1,415,890)(1,519,023) Customer Deposits Received 0 0 0 Customer Deposits Returned (172,602)(6,649)0 Cash Received for Reimbursed Expenses 54,031 42,345 0 Cash Received from Sale of Scrap 0 0 0 Cash Received from Collection Fees 0 0 0 Cash Received from Grants 0 0 0 Cash Received for Miscellaneous Revenues 172,869 36,065 0 Cash Paid for Miscellaneous Expenses (2,808)0 (25,137) Net Cash Provided (Used) by Operating Activities 7,509,496 4,351,195 4,325,257 Cash Flows from Noncapital Financing Activities: Operating Transfers In from Other Funds 1,241 0 0 Operating Transfers Out to Other Funds (4,574,900)(923,800)(729,500) Cash Paid to Other Funds 0 0 0 Cash Paid to Public Agencies (246,951)0 0 Net Cash Used by Noncapital Financing Activities (4,820,610)(923,800)(729,500) Cash Flows from Capital and Related Financing Activities: Acquisition and Construction of Capital Assets (5,726,992)(7,835,932)(9,086,166) Proceeds from Sale of Assets 0 0 0 Capital Contributed by Developers 0 0 0 Principal Paid on Revenue Bonds (825,650)(864,150)(1,475,200) Interest Paid on Revenue Bonds (681,417)(1,234,162)(1,708,235) Fees Paid to Fiscal Agent 0 0 (3,121) Proceeds from Revenue Bonds 4,528,750 7,427,150 6,159,100 Issuance Costs Paid on Revenue Bonds (24,920)(40,870)(33,892) Net Cash Used by Capital and Related Financing Activities (2,730,229)(2,547,964)(6,147,514) Cash Flows from Investing Activities: Purchase of Investments (10,626,411)(13,952,675)(7,892,853) Proceeds from Sale and Maturities of Investment Securities 11,179,960 14,215,912 9,607,313 Investment Income 667,041 864,415 564,825 Net Cash Provided by Investing Activities 1,220,590 1,127,652 2,279,285 (Continued) 124 Totals Cedar Creek Northgate Sanitation Condominiums Parking 2002 2001 4,252,169$ 0$ 467,370$ 65,959,669$ $63,101,086 (3,100,393)0 (671,819)(43,924,633)(42,889,642) (1,281,091)0 (153,916)(6,434,882)(5,968,699) 0 0 1,475 1,475 228,240 0 0 0 (179,251)(825,381) 0 0 0 96,376 64,716 0 0 0 0 16,024 0 0 0 0 8,653 0 0 0 0 14,800 0 0 76,647 285,581 189,625 (2,134)0 0 (30,079)(54,139) (131,449)0 (280,243)15,774,256 13,885,283 0 0 0 1,241 225,000 (306,700)0 (225,000)(6,759,900)(14,278,073) 0 0 0 0 (200,000) (15,000)0 0 (261,951)(283,967) (321,700)0 (225,000)(7,020,610) (14,537,040) 0 0 (430,115)(23,079,205)(24,293,661) 0 0 0 0 821,970 0 0 0 0 93,464 0 0 0 (3,165,000)(3,185,000) 0 0 0 (3,623,814)(2,521,280) 0 0 0 (3,121)(9,660) 0 0 0 18,115,000 23,997,130 0 0 0 (99,682)(101,475) 0 0 (430,115)(11,855,822) (5,198,512) (565,381)(167,957)(421,008)(33,626,285)(25,516,986) 826,716 182,186 924,454 36,936,541 31,927,562 47,635 0 46,612 2,190,528 3,410,178 308,970 14,229 550,058 5,500,784 9,820,754 (Continued) 125 CITY OF COLLEGE STATION, TEXAS ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS For the Fiscal Year Ended September 30, 2002 (With comparative totals for the fiscal year ended September 30, 2001) (Continued) Electric Water Sewer Net Increase (Decrease) in Cash and Cash Equivalents 1,179,247$ 2,007,083$ (272,472)$ Cash and Cash Equivalents, Oct. 1 7,150,578 8,887,416 6,725,939 Cash and Cash Equivalents, Sept. 30 8,329,825 10,894,499 6,453,467 Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Operating Income (Loss)5,173,521 2,855,873 2,935,424 Adjustment to Reconcile Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Depreciation 2,398,907 1,264,261 1,238,525 Provision for Uncollectible Accounts 40,874 7,625 14,769 Miscellaneous Nonoperating Revenues 226,906 78,410 0 Miscellaneous Nonoperating Expenses (2,808)0 (25,137) Changes in Assets and Liabilities: Change in Accounts Receivable (704,816)(44,879)(162,212) Change in Other Receivables 10,971 0 0 Change in Inventory 484,663 (4,158)4,251 Change in Accounts Payable 18,276 185,394 300,369 Change in Accrued Liabilities 12,272 12,267 15,343 Change in Deferred Revenue 0 0 0 Change in Refundable Deposits (172,602)(6,649)0 Change in Accrued Vacation 23,332 3,051 3,925 Total Adjustments 2,335,975 1,495,322 1,389,833 Net Cash Provided (Used) by Operating Activities 7,509,496$ 4,351,195$ 4,325,257$ (Continued) 126 Totals Cedar Creek Northgate Sanitation Condominiums Parking 2002 2001 (144,179)$ 14,229$ (385,300)$ 2,398,608$ 3,970,485$ 632,166 118,968 806,002 24,321,069 20,350,584 487,987 133,197 420,702 26,719,677 24,321,069 (86,411)0 (146,159)10,732,248 9,812,532 14,176 0 160,450 5,076,319 3,683,012 11,195 0 50 74,513 0 0 0 76,647 381,963 380,508 (2,134)0 0 (30,079)(104,921) (54,372)0 15,309 (950,970)(241,029) 0 0 0 10,971 10,909 (1,274)0 0 483,482 (36,819) (20,347)0 (387,351)96,341 863,788 10,496 0 (49)50,329 88,376 0 0 0 0 3,696 0 0 1,475 (177,776)(596,667) (2,778)0 (615)26,915 21,898 (45,038)0 (134,084)5,042,008 4,072,751 (131,449)$ 0$ (280,243)$ 15,774,256$ $13,885,283 (Continued) 127 CITY OF COLLEGE STATION ELECTRIC FUND SCHEDULE OF REVENUES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2002 Original Budget Revised Budget Actual Variance Over (Under) Operating Revenues Electric Sales 42,582,300$ 42,582,300$ 44,058,644$ 1,476,344$ Forfeits, Discounts and Penalties 762,200 762,200 768,488 6,288 Electric Property Rentals 53,600 53,600 33,653 (19,947) Connect Fees 200,900 200,900 204,895 3,995 Miscellaneous 10,300 10,300 4,595 (5,705) Total Operating Revenues 43,609,300 43,609,300 45,070,275 1,460,975 Nonoperating Revenues Investment Income 1,200,000 1,200,000 593,283 (606,717) Reimbursed Expenses 23,000 23,000 54,031 31,031 Contributions 6,100 6,100 13,697 7,597 Operating Transfers In 0 0 1,241 1,241 Other 85,700 85,700 93,534 7,834 Total Nonoperating Revenues 1,314,800 1,314,800 755,786 (559,014) Revenue Bond I&S Fund Investment Income 0 0 62,610 62,610 Operating Transfers In 1,417,139 1,417,139 1,417,139 0 Total Revenue Bond I&S Fund 1,417,139 1,417,139 1,479,749 62,610 Electric Revenue Bond Funds Investment Income 0 0 98,360 98,360 Proceeds from Long-Term Debt 4,440,000 4,440,000 4,528,750 88,750 Total Electric Revenue Bond Fund 4,440,000 4,440,000 4,627,110 187,110 Total Electric Fund Revenues 50,781,239$ 50,781,239$ 51,932,920$ 1,151,681$ See reconciliation to GAAP on page 139. 128 CITY OF COLLEGE STATION, TEXAS ELECTRIC FUND SCHEDULE OF EXPENSES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2002 Original Budget Revised Budget Actual Variance Over (Under) Operating Expenses Electric Operations 37,061,757$ 37,075,751$ 39,030,972$ 1,955,221$ Capital Outlay 20,400 20,400 0 (20,400) Total Administration 37,082,157 37,096,151 39,030,972 1,934,821 Nondepartmental Reimbursed Administrative 1,536,430 1,536,430 1,599,132 62,702 Other Expenses 0 0 (2,855)(2,855) Public Agency Funding 246,951 246,951 246,951 0 Return on Investment 4,360,000 4,360,000 4,360,000 0 Operating Transfers Out 1,632,039 1,632,039 1,632,039 0 Capital Outlay 5,719,887 5,832,465 4,068,271 (1,764,194) Contingency 170,000 170,480 0 (170,480) Total Nondepartmental 13,665,307 13,778,365 11,903,538 (1,874,827) Revenue Bond I&S Fund Principal Payments 832,500 832,500 825,650 (6,850) Interest Expense 584,639 584,639 673,490 88,851 Fiscal Agent's Fee 0 0 2,730 2,730 Total Revenue Bond I&S Fund 1,417,139 1,417,139 1,501,870 84,731 Total Electric Fund Expenses 52,164,603$ 52,291,655$ 52,436,380$ 144,725$ See reconciliation to GAAP on page 139. 129 CITY OF COLLEGE STATION, TEXAS WATER FUND SCHEDULE OF REVENUES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2002 Original Budget Revised Budget Actual Variance Over (Under) Operating Revenues Water Sales 8,194,000$ 8,194,000$ 8,130,637$ (63,363)$ Water Taps 391,400 391,400 484,910 93,510 Connect Fees 25,800 25,800 52,030 26,230 Miscellaneous Operating Revenue 1,500 1,500 4,762 3,262 Total Operating Revenues 8,612,700 8,612,700 8,672,339 59,639 Nonoperating Revenues Investment Income 545,900 545,900 426,223 (119,677) Reimbursed Expenses 17,500 17,500 33,245 15,745 Other 200 200 10,886 10,686 Total Nonoperating Revenues 563,600 563,600 470,354 (93,246) Revenue Bond I&S Fund Investment Income 0 0 82,545 82,545 Operating Transfers In 2,054,563 2,054,563 2,054,563 0 Total Water Revenue I&S Fund 2,054,563 2,054,563 2,137,108 82,545 Water Revenue Bond Funds Investment Income 160,000 160,000 453,166 293,166 Other 0 0 9,100 9,100 Operating Transfers In 7,750,000 7,750,000 0 (7,750,000) Proceeds from Long-Term Debt 6,300,000 6,300,000 7,427,150 1,127,150 Total Water Revenue Bond Fund 14,210,000 14,210,000 7,889,416 (6,320,584) Total Water Fund Revenues 25,440,863$ 25,440,863$ 19,169,217$ (6,271,646)$ See reconciliation to GAAP on page 139. 130 CITY OF COLLEGE STATION, TEXAS WATER FUND SCHEDULE OF EXPENSES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2002 (Continued) Original Budget Revised Budget Actual Variance Over (Under) Water Production Salaries and Benefits 262,291$ 264,023$ 269,653$ 5,630$ Supplies 65,354 65,354 61,536 (3,818) Maintenance 138,072 138,072 98,052 (40,020) Purchased Professional Services 99,636 99,636 73,933 (25,703) Purchased Property Services 1,223,330 1,223,330 858,462 (364,868) Other Purchased Services 36,109 36,109 29,667 (6,442) Capital Outlay 75,000 75,000 52,380 (22,620) Other 160,828 160,828 75,069 (85,759) Total Water Production 2,060,620 2,062,352 1,518,752 (543,600) Water Distribution Salaries and Benefits 652,751 657,513 684,494 26,981 Supplies 31,911 31,911 50,992 19,081 Maintenance 200,744 200,744 264,374 63,630 Purchased Professional Services 76,467 287,717 118,966 (168,751) Purchased Property Services 7,921 7,921 10,206 2,285 Other Purchased Services 72,973 72,973 224,728 151,755 Capital Outlay 230,966 230,966 146,700 (84,266) Total Water Distribution 1,273,733 1,489,745 1,500,460 10,715 Engineering Salaries and Benefits 479,056 481,756 466,364 (15,392) Supplies 19,538 19,538 18,742 (796) Maintenance 16,784 16,784 14,309 (2,475) Purchased Professional Services 738 738 11,294 10,556 Purchased Property Services 4,984 4,984 4,820 (164) Other Purchased Services 44,492 44,492 47,792 3,300 Total Engineering 565,592 568,292 563,321 (4,971) Nondepartmental Reimbursed Administrative 839,243 839,243 873,643 34,400 Other Operating Expenses 0 0 6,469 6,469 Other Nonoperating Expenses 0 0 130 130 Operating Transfers Out 10,678,363 10,678,363 2,978,363 (7,700,000) Contingency 70,000 63,050 0 (63,050) Total Nondepartmental 11,587,606 11,580,656 3,858,605 (7,722,051) (Continued) 131 CITY OF COLLEGE STATION, TEXAS WATER FUND SCHEDULE OF EXPENSES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2002 (Continued) Original Budget Revised Budget Actual Variance Over (Under) Revenue Bond I&S Fund Principal Payments 890,171$ 890,171$ 864,150$ (26,021)$ Interest Expense 1,164,393 1,164,393 1,230,148 65,755 Fiscal Agent's Fees 0 0 1,146 1,146 Total Revenue Bond I&S Fund 2,054,564 2,054,564 2,095,444 40,880 Water Revenue Bond Fund Reimbursed Administrative 275,000 275,000 275,000 0 Capital Outlay 11,803,000 11,803,000 7,447,928 (4,355,072) Debt Issuance Costs 100,000 100,000 0 (100,000) Total Water Revenue Bond Fund 12,178,000 12,178,000 7,722,928 (4,455,072) Total Water Fund Expenses 29,720,115$ 29,933,609$ 17,259,510$ (12,674,099)$ See reconciliation to GAAP on page 139. (Continued) 132 CITY OF COLLEGE STATION, TEXAS SEWER FUND SCHEDULE OF REVENUES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2002 Original Budget Revised Budget Actual Variance Over (Under) Operating Revenues Sewer Service 7,447,000$ 7,447,000$ 7,839,545$ 392,545$ Sewer Taps 221,500 221,500 323,038 101,538 Total Operating Revenues 7,668,500 7,668,500 8,162,583 494,083 Nonoperating Revenues Investment Income 154,500 154,500 127,439 (27,061) Other 0 0 25,951 25,951 Total Nonoperating Revenues 154,500 154,500 153,390 (1,110) Revenue Bond I&S Fund Investment Income 0 0 102,864 102,864 Operating Transfers In 3,166,265 3,166,265 3,166,265 0 Total Sewer Revenue I&S Fund 3,166,265 3,166,265 3,269,129 102,864 Sewer Revenue Bond Funds Investment Income 200,000 200,000 375,195 175,195 Other 0 270,000 12,130 (257,870) Proceeds from Long-Term Debt 10,000,000 10,000,000 6,159,100 (3,840,900) Total Sewer Revenue Bond Funds 10,200,000 10,470,000 6,546,425 (3,923,575) Sewer Impact Fee Funds Investment Income 0 0 13,040 13,040 Special Assessments 0 0 107,296 107,296 Total Sewer Impact Fee Funds 0 0 120,336 120,336 Total Sewer Fund Revenues 21,189,265$ 21,459,265$ 18,251,863$ (3,207,402)$ See reconciliation to GAAP on page 139. 133 CITY OF COLLEGE STATION, TEXAS SEWER FUND SCHEDULE OF EXPENSES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2002 (Continued) Original Budget Revised Budget Actual Variance Over (Under) Sewer Treatment Salaries and Benefits 833,995$ 840,070$ 885,469$ 45,399$ Supplies 214,328 214,328 200,118 (14,210) Maintenance 230,526 230,526 256,096 25,570 Purchased Professional Services 99,135 109,400 62,944 (46,456) Purchased Property Services 349,635 349,635 284,544 (65,091) Other Purchased Services 111,338 111,338 114,798 3,460 Capital Outlay 29,250 29,250 9,750 (19,500) Total Sewer Treatment 1,868,207 1,884,547 1,813,719 (70,828) Sewer Collection Salaries and Benefits 655,224 658,951 641,467 (17,484) Supplies 50,605 50,605 90,767 40,162 Maintenance 133,425 133,425 112,233 (21,192) Purchased Professional Services 137,519 342,019 140,545 (201,474) Purchased Property Services 19,724 19,724 15,612 (4,112) Other Purchased Services 106,496 106,496 104,130 (2,366) Capital Outlay 0 0 13,050 13,050 Total Sewer Collection 1,102,993 1,311,220 1,117,804 (193,416) Nondepartmental Reimbursed Administrative 742,025 742,025 746,025 4,000 Other Operating Expenses 0 0 2,289 2,289 Return on Investment 719,500 719,500 719,500 0 Other Operating Transfers Out 3,176,265 3,176,265 3,176,265 0 Contingency 60,000 52,790 0 (52,790) Total Nondepartmental 4,697,790 4,690,580 4,644,079 (46,501) Revenue Bond I&S Fund Principal Payments 1,507,330 1,507,330 1,475,200 (32,130) Interest Expense 1,658,936 1,658,936 1,699,057 40,121 Fiscal Agent's Fee 0 0 3,121 3,121 Total Revenue Bond I&S Fund 3,166,266 3,166,266 3,177,378 11,112 (Continued) 134 CITY OF COLLEGE STATION, TEXAS SEWER FUND SCHEDULE OF EXPENSES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2002 (Continued) Original Budget Revised Budget Actual Variance Over (Under) Sewer Revenue Bond Fund Reimbursed Administrative 325,000$ 325,000$ 325,000$ 0$ Capital Outlay 2,450,694 2,750,694 9,217,111 6,466,417 Debt Issuance Costs 60,000 60,000 0 (60,000) Total Sewer Revenue Bond Fund 2,835,694 3,135,694 9,542,111 6,406,417 Total Sewer Fund Expenses 13,670,950$ 14,188,307$ 20,295,091$ 6,106,784$ See reconciliation to GAAP on page 139. (Continued) 135 CITY OF COLLEGE STATION, TEXAS SANITATION FUND SCHEDULE OF REVENUES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2002 Original Budget Revised Budget Actual Variance Over (Under) Operating Revenues Residential Collection 2,657,400$ 2,657,400$ 2,575,734$ (81,666)$ Commercial Collection 1,654,500 1,654,500 1,669,082 14,582 Other Charges for Services 21,400 21,400 24,148 2,748 Recycling 30,900 30,900 24,201 (6,699) Other 2,200 2,200 1,904 (296) Total Operating Revenues 4,366,400 4,366,400 4,295,069 (71,331) Nondepartmental Revenues Investment Income 118,400 118,400 52,535 (65,865) Other 3,600 3,600 25,253 21,653 Total Nonoperating Revenues 122,000 122,000 77,788 (44,212) Total Sanitation Fund Revenues 4,488,400$ 4,488,400$ 4,372,857$ (115,543)$ See reconciliation to GAAP on page 139. 136 CITY OF COLLEGE STATION, TEXAS SANITATION FUND SCHEDULE OF EXPENSES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2002 Original Budget Revised Budget Actual Variance Over (Under) Residential Collection Salaries and Benefits 879,003$ 885,519$ 886,538$ 1,019$ Supplies 97,360 97,360 127,062 29,702 Maintenance 183,240 183,240 389,878 206,638 Purchased Professional Services 341,740 341,740 100,716 (241,024) Purchased Property Services 320,012 320,012 362,317 42,305 Other Purchased Services 225,636 225,636 221,969 (3,667) Total Residential Collection 2,046,991 2,053,507 2,088,480 34,973 Commercial Collection Salaries and Benefits 404,884 408,004 394,552 (13,452) Supplies 96,720 96,720 66,468 (30,252) Maintenance 226,370 226,370 225,449 (921) Purchased Professional Services 270 270 448 178 Purchased Property Services 723,480 723,480 762,848 39,368 Other Purchased Services 265,441 265,441 436,354 170,913 Capital Outlay 186,650 186,650 0 (186,650) Total Commercial Collections 1,903,815 1,906,935 1,886,119 (20,816) Nondepartmental Reimbursed Administrative 385,731 385,731 389,731 4,000 Public Agency Funding 40,000 40,000 15,000 (25,000) Return on Investment 294,200 294,200 294,200 0 Operating Transfers Out 12,500 12,500 12,500 0 Contingency 50,000 50,108 0 (50,108) Total Nondepartmental 782,431 782,539 711,431 (71,108) Total Sanitation Fund Expenses 4,733,237$ 4,742,981$ 4,686,030$ (56,951)$ See reconciliation to GAAP on page 139. 137 CITY OF COLLEGE STATION, TEXAS NORTHGATE PARKING GARAGE FUND SCHEDULE OF REVENUES AND EXPENSES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2002 Original Budget Revised Budget Actual Variance Over (Under) Operating Revenues Charges for Services 1,198,800$ 1,198,800$ 452,061$ (746,739)$ Total Operating Revenues 1,198,800 1,198,800 452,061 (746,739) Operating Expenses Salaries and Benefits 218,414 219,086 153,916 (65,170) Supplies 18,738 18,738 35,935 17,197 Maintenance 8,945 8,945 3,772 (5,173) Purchased Professional Services 61,793 72,973 49,060 (23,913) Purchased Property Services 779 779 39,258 38,479 Other Services 5,497 5,497 65,699 60,202 Capital Outlay 406,022 (225,143)175,597 400,740 Total Operating Expenses 720,188 100,875 523,237 422,362 Net Operating Income (Loss)478,612 1,097,925 (71,176)(1,169,101) Nonoperating Revenues (Expenses) Investment Income 21,300 21,300 50,736 29,436 Contributions 0 0 76,542 76,542 Reimbursed Administrative (13,000)(13,000)(13,000)0 Other, Net 0 0 104 104 Total Nonoperating Revenues (Expenses)8,300 8,300 114,382 106,082 Net Income Before Operating Transfers 486,912 1,106,225 43,206 (1,063,019) Operating Transfers Operating Transfers In 225,000 225,000 0 (225,000) Operating Transfers Out 645,358 645,358 225,000 (420,358) Net Operating Transfers (420,358)(420,358)(225,000)195,358 Net Income 66,554$ 685,867$ (181,794)$ (867,661)$ See reconciliation to GAAP on page 139. 138 CITY OF COLLEGE STATION, TEXAS ENTERPRISE FUNDS SCHEDULE FOR RECONCILIATION OF REVENUES AND EXPENSES (BUDGETARY BASIS) TO GAAP BASIS STATEMENT OF INCOME For the Fiscal Year Ended September 30, 2002 Solid Waste Northgate Electric Water Sewer Collection Parking Total Revenues Per Budget - Actual 51,932,920$ 19,169,217$ 18,251,863$ 4,372,857$ 579,443$ Less Total Expenses Per Budget - Actual 52,436,380 17,259,510 20,295,091 4,686,030 761,237 Net Income (Loss), Budgetary Basis (503,460)1,909,707 (2,043,228)(313,173)(181,794) Add (Subtract) - Expenses (Revenues) Related to Balance Sheet: Reclass Principal Payment 825,650 864,150 1,475,200 0 0 Reverse Capital Outlay 4,068,271 7,647,008 9,239,911 0 175,597 Reclass Contributed Capital 0 0 (12,130)0 0 Reclass Salaries, Benefits and Overhead to Construction in Progress 1,636,239 4,621 7,909 0 0 Adjust Accrued Vacation (23,332)(3,051)(3,925)2,778 614 Add (Subtract) - Unbudgeted Revenue (Expenses) Adjustments FY'02 Depreciation (2,398,907)(1,264,261)(1,238,525)(14,176)(160,450) Current Year Revenue Accrual 1,924,892 360,580 375,686 180,784 0 Adjust Accrued Interest Payable (72,165)(167,689)(142,995)0 0 FY'02 Bond Amortization Issuance Cost (17,904)(16,283)(30,258)0 0 Prior Year Revenue Accrual (1,743,330)(347,144)(334,930)(169,317)0 FY'02 Bad Debt Expense (207,271)(27,671)(49,977)(32,405)(76,592) Inventory Adjustment 1,334 (14,542)2,895 (3,529)0 Earnings in Joint Venture 0 0 0 842,323 0 Reclass Proceeds From Long Term Debt (4,528,750)(7,427,150)(6,159,100)0 0 Investment Accrual and FV Adjustment (148,128)(182,237)(145,815)(14,197)(17,425) Accrue FY'02 Expense (40,952)0 (24,386)0 0 Reclass Impact Fees 0 0 (107,296)0 0 FY'02 Payroll Adjustment (20,997)(9,002)5,987 (8,676)(1,152) Power Charge Adjustment 1,601,630 0 0 0 0 Other, Net 4,536 8,099 5,221 2 1 Net Income (Loss), GAAP Basis 357,356$ 1,335,135$ 820,244$ 470,414$ (261,201)$ 139 141 INTERNAL SERVICE FUNDS Internal service funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the government and to other government units, on a cost reimbursement basis. Communication Services - to account for the activities related to the operation and maintenance of the City’s radio and telephone systems. Employee Benefits - to account for self-insurance activity related to administration of the City's health benefits plan. Equipment Replacement - to account for the purchase of City equipment such as vehicles and large motorized equipment, the telephone and radio systems, and replacement assets for existing technological infrastructure equipment not budgeted in other funds. Fleet Maintenance - to account for all activities related to the management of the City’s vehicles and heavy equipment, including preventive maintenance and vehicle repair activities. Print-Mail Services - to account for the activities related to the City’s printing and mailing operations. Property and Casualty - to account for insurance activity relating to all claims filed for liability cases (both injury and property) and property losses incurred for City property. Unemployment - to account for self-insurance activity on claims filed under unemployment compensation laws. Utility Billing - to account for the billing and collection activities relating to the City’s electric, water, and sewer utilities and residential and commercial garbage collection. Workers' Compensation - to account for self-insurance activity relating to administration of the City's workers' compensation plan. CITY OF COLLEGE STATION, TEXAS INTERNAL SERVICE FUNDS COMBINING BALANCE SHEET SEPTEMBER 30, 2002 (With comparative totals for the fiscal year ended September 30, 2001) Communication Services Employee Benefits Equipment Replacement Fleet Maintenance Current Assets Equity in Cash and Cash Equivalents 0$ 627,145$ 3,462,627$ 0$ Equity in Investment 0 529,949 2,925,983 0 Receivables Accrued Interest (439)5,713 32,819 (508) Accounts 0 2,629 0 2,652 Other 0 0 0 0 Less Allowance for Uncollectable Accounts 0 0 0 0 Due from Other Funds 0 0 69,504 0 Inventories 0 0 0 79,971 Prepaid Costs 0 0 0 0 Total Current Assets (439)1,165,436 6,490,933 82,115 Property and Equipment Buildings 0 0 0 746,575 Machinery and Equipment 1,195,420 0 16,495,178 208,820 Accumulated Depreciation (878,998)0 (8,705,457)(366,069) Construction in Progress 0 0 0 0 Total Property and Equipment 316,422 0 7,789,721 589,326 Total Assets 315,983$ 1,165,436$ 14,280,654$ 671,441$ Liabilities and Fund Equity Current Liabilities Accounts Payable 6,139$ 406,151$ 27,118$ 42,937$ Due to Other Funds 51,419 0 0 18,085 Claims Payable 0 0 0 0 Accrued Liabilities 10,786 0 0 18,960 Total Current Liabilities 68,344 406,151 27,118 79,982 Noncurrent Liabilities Accrued Vacation 8,333 0 0 22,427 Total Noncurrent Liabilities 8,333 0 0 22,427 Total Liabilities 76,677 406,151 27,118 102,409 Fund Equity Contributed Capital 860,672 0 2,147,900 728,268 Unreserved Retained Earnings (Deficits)(621,366)759,285 12,105,636 (159,236) Total Fund Equity 239,306 759,285 14,253,536 569,032 Total Liabilities and Fund Equity 315,983$ 1,165,436$ 14,280,654$ 671,441$ 142 Totals Print/Mail Services Property and Casualty Unemployment Utility Billing Workers' Compensation 2002 2001 7,490$ 297,992$ 63,408$ 106,010$ 150,588$ 4,715,260$ 2,768,260$ 6,329 251,809 53,581 89,581 127,249 3,984,481 2,950,103 (58)2,623 613 789 1,601 43,153 62,999 0 138,629 0 17,716 0 161,626 228,273 0 0 0 11,240 0 11,240 13,382 0 0 0 (15,513)0 (15,513)(12,971) 0 0 0 0 0 69,504 97,680 28,545 0 0 0 0 108,516 217,627 14,211 0 0 0 54,000 68,211 40,346 56,517 691,053 117,602 209,823 333,438 9,146,478 6,365,699 0 0 0 0 0 746,575 746,575 141,290 0 0 1,516,017 0 19,556,725 16,107,287 (108,872)0 0 (732,570)0 (10,791,966)(8,531,649) 0 0 0 0 0 0 1,521,118 32,418 0 0 783,447 0 9,511,334 9,843,331 88,935$ 691,053$ 117,602$ 993,270$ 333,438$ 18,657,812$ 16,209,030$ 10,411$ 124,870$ 4,971$ 8,352$ 0$ 630,949$ 194,819$ 0 0 0 0 0 69,504 97,680 0 53,894 0 0 97,601 151,495 412,677 7,032 0 0 32,902 0 69,680 56,121 17,443 178,764 4,971 41,254 97,601 921,628 761,297 6,477 0 0 47,063 0 84,300 82,643 6,477 0 0 47,063 0 84,300 82,643 23,920 178,764 4,971 88,317 97,601 1,005,928 843,940 46,475 0 0 381,137 0 4,164,452 3,295,652 18,540 512,289 112,631 523,816 235,837 13,487,432 12,069,438 65,015 512,289 112,631 904,953 235,837 17,651,884 15,365,090 88,935$ 691,053$ 117,602$ 993,270$ 333,438$ 18,657,812$ 16,209,030$ 143 CITY OF COLLEGE STATION, TEXAS INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS (DEFICITS) For the Fiscal Year Ended September 30, 2002 (With comparative totals for the fiscal year ended September 30, 2001) Communication Services Employee Benefits Equipment Replacement Fleet Maintenance Operating Revenues Charges for Services 607,557$ 0$ 2,881,093$ 1,298,220$ Premiums 0 3,699,794 0 0 Other 0 0 0 171 Total Operating Revenues 607,557 3,699,794 2,881,093 1,298,391 Operating Expenses Salaries and Benefits 277,439 0 0 597,058 Supplies 92,488 0 1,135 454,322 Maintenance 107,796 0 0 20,585 Purchased Professional Services 11,665 0 0 2,095 Purchased Property Services 10,231 0 0 15,677 Other Purchased Services 28,795 0 0 24,540 Claims 0 809,658 0 0 Administration Fees 0 129,737 0 0 Premiums 0 2,170,034 0 0 Reimbursed Administrative 85,000 345 0 130,397 Depreciation 102,925 0 2,194,671 25,851 Other 0 0 0 68,889 Total Operating Expenses 716,339 3,109,774 2,195,806 1,339,414 Operating Income (Loss)(108,782)590,020 685,287 (41,023) Nonoperating Revenues (Expenses) Investment Income (3,634)31,747 221,949 (3,822) Reimbursed Expenses 0 0 55,595 0 Other, Net 0 (392)6,440 14,454 Total Nonoperating Revenues (Expenses)(3,634)31,355 283,984 10,632 Income Before Operating Transfers (112,416)621,375 969,271 (30,391) Operating Transfers Operating Transfers In 0 0 617 858 Operating Transfers Out 0 0 0 0 Total Operating Transfers 0 0 617 858 Net Income (Loss)(112,416)621,375 969,888 (29,533) Retained Earnings (Deficits), October 1 (508,950)137,910 11,135,748 (129,703) Retained Earnings (Deficits), September 30 (621,366)$ 759,285$ 12,105,636$ (159,236)$ 144 Totals Print/Mail Property and Casualty Unemployment Utility Billing Workers' Compensation 2002 2001 372,288$ 0$ 0$ 1,995,200$ 0$ 7,154,358$ 6,423,696$ 0 418,997 0 0 308,934 4,427,725 3,663,439 0 0 0 159,928 0 160,099 180,494 372,288 418,997 0 2,155,128 308,934 11,742,182 10,267,629 185,353 0 0 1,116,180 0 2,176,030 2,062,129 104,432 0 0 55,089 0 707,466 712,106 5,708 0 0 36,537 0 170,626 125,531 48 0 0 3,755 0 17,563 22,551 41,208 0 0 37,407 0 104,523 85,115 5,484 0 0 203,755 0 262,574 281,430 0 291,830 8,711 0 148,614 1,258,813 3,286,950 0 3,500 0 0 1,475 134,712 179,403 0 236,529 0 0 85,996 2,492,559 588,445 41,138 70,564 0 595,487 70,564 993,495 1,127,195 10,705 0 0 51,656 0 2,385,808 1,838,288 (17,935)8,507 0 12,608 0 72,069 60,646 376,141 610,930 8,711 2,112,474 306,649 10,776,238 10,369,789 (3,853)(191,933)(8,711)42,654 2,285 965,944 (102,160) (510)14,957 4,184 5,512 10,126 280,509 315,557 0 106,967 0 0 0 162,562 92,343 0 0 0 512 (13,510)7,504 (87,071) (510)121,924 4,184 6,024 (3,384)450,575 320,829 (4,363)(70,009)(4,527)48,678 (1,099)1,416,519 218,669 0 0 0 0 0 1,475 770,200 0 0 0 0 0 0 (112,400) 0 0 0 0 0 1,475 657,800 (4,363)(70,009)(4,527)48,678 (1,099)1,417,994 876,469 22,903 582,298 117,158 475,138 236,936 12,069,438 11,192,969 18,540$ 512,289$ 112,631$ 523,816$ 235,837$ 13,487,432$ 12,069,438$ 145 CITY OF COLLEGE STATION, TEXAS INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS For the Fiscal Year Ended September 30, 2002 (With comparative totals for the fiscal year ended September 30, 2001) Communication Employee Equipment Fleet Services Benefits Replacement Maintenance Cash Flows from Operating Activities Cash Received from Customers 607,557$ 3,699,794$ 2,881,093$ 1,297,459$ Cash Payments to Suppliers for Goods and Services (337,988)(2,969,557)56,820 (674,056) Cash Payments to Employees for Services (277,065)0 0 (588,417) Cash Received for Reimbursed Expenses 0 0 18,707 0 Cash Received for Miscellaneous Revenues 0 0 6,440 14,454 Cash Received from Other Funds 7,583 43,502 28,177 0 Cash Paid to Other Funds 0 0 0 (35,760) Cash Paid for Miscellaneous Expenses 0 0 0 0 Net Cash Provided (Used) by Operating Activities 87 773,739 2,991,237 13,680 Cash Flows from Noncapital Financing Activities: Operating Transfers In from Other Funds 0 0 617 858 Operating Transfers Out to Other Funds 0 0 0 0 Net Cash Provided by Noncapital Financing Activities 0 0 617 858 Cash Flows from Capital and Related Financing Activities: Acquisition of Capital Assets 0 0 (2,002,353)(10,589) Proceeds from Sale of Assets 3,647 0 0 0 Proceeds from Revenue Bonds 0 0 868,800 0 Net Cash Provided (Used) by Capital and Related Financing Activities:3,647 0 (1,133,553)(10,589) Cash Flows from Investing Activities: Purchase of Investments 0 (889,801)(4,624,452)0 Proceeds from Sale and Maturities of Investment Securities 0 542,239 3,913,110 0 Investment Income (3,734)29,823 237,537 (3,949) Net Cash Provided (Used) by Investing Activities:(3,734)(317,739)(473,805)(3,949) Net Increase (Decrease) in Cash and Cash Equivalents 0 456,000 1,384,496 0 Cash and Cash Equivalents, Oct. 1 0 171,145 2,078,131 0 Cash and Cash Equivalents, Sept. 30 0 627,145 3,462,627 0 Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Operating Income (Loss)(108,782)590,020 685,287 (41,023) Adjustment to Reconcile Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Depreciation 102,925 0 2,194,671 25,851 Miscellaneous Nonoperating Revenues 0 0 30,113 14,454 Miscellaneous Nonoperating Expenses 0 0 0 0 Change in Assets and Liabilities: Change in Accounts Receivable 0 0 26,117 (932) Change in Due from Other Funds 0 43,502 28,177 0 Change in Inventories 0 0 0 113,357 Change in Prepaid Costs 0 0 0 0 Change in Accounts Payable (364)402,198 26,872 (71,742) Change in Due to Other Funds 7,583 0 0 (35,760) Change in Claims Payable 0 (261,981)0 0 Change in Accrued Liabilities 1,804 0 0 4,940 Change in Accrued Vacation (3,079)0 0 4,535 Total Adjustments 108,869 183,719 2,305,950 54,703 Net Cash Provided (Used) by Operating Activities 87$ 773,739$ 2,991,237$ 13,680$ 146 Totals Print/Mail Property and Utility Workers' Services Casualty Unemployment Billing Compensation 2002 2001 372,288$ 417,257$ 0$ 2,156,970$ 308,934$ 11,741,352$ 10,242,960$ (182,788)(499,313)(12,302)(944,611)(317,710)(5,881,505)(6,771,422) (183,690)0 0 (1,110,529)0 (2,159,701)(2,062,579) 0 106,967 0 0 0 125,674 92,343 0 0 0 513 0 21,407 2,621 0 0 0 0 0 79,262 43,835 0 0 0 0 0 (35,760)(43,835) 0 0 0 0 (57,698)(57,698)(15,018) 5,810 24,911 (12,302)102,343 (66,474)3,833,031 1,488,905 0 0 0 0 0 1,475 770,200 0 0 0 0 0 0 (112,400) 0 0 0 0 0 1,475 657,800 (12,595)0 0 0 0 (2,025,537)(2,022,003) 0 0 0 0 0 3,647 50,338 0 0 0 0 0 868,800 0 (12,595)0 0 0 0 (1,153,090)(1,971,665) (8,566)(381,036)(79,049)(146,971)(183,198)(6,313,073)(3,097,618) 13,043 390,771 89,620 102,620 227,292 5,278,695 3,369,007 (342)17,923 4,942 5,576 12,186 299,962 327,890 4,135 27,658 15,513 (38,775)56,280 (734,416) 599,279 (2,650)52,569 3,211 63,568 (10,194)1,947,000 774,319 10,140 245,423 60,197 42,442 160,782 2,768,260 1,993,941 7,490 297,992 63,408 106,010 150,588 4,715,260 2,768,260 (3,853)(191,933)(8,711)42,654 2,285 965,944 (102,160) 10,705 0 0 51,656 0 2,385,808 1,838,288 0 106,967 0 513 0 152,047 94,964 0 0 0 (13,512)(13,512)(14,671) 0 (1,740)0 4,384 0 27,829 (46,988) 0 0 0 0 0 71,679 (33,708) (4,246)0 0 0 0 109,111 (9,461) 4,135 0 0 0 (32,000)(27,865)(759) (2,546)88,723 (3,591)(2,265)(1,154)436,131 1,657 0 0 0 0 0 (28,177)33,708 0 22,894 0 0 (22,093)(261,180)(288,376) 1,195 0 0 5,620 0 13,559 24,396 420 0 0 (219)0 1,657 (7,985) 9,663 216,844 (3,591)59,689 (68,759)2,867,087 1,591,065 5,810$ 24,911$ (12,302)$ 102,343$ (66,474)$ 3,833,031$ 1,488,905$ 147 CITY OF COLLEGE STATION, TEXAS COMMUNICATIONS SERVICES FUND SCHEDULE OF REVENUES AND EXPENSES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2002 Original Budget Revised Budget Actual Variance Over (Under) Operating Revenues Charges for Services 630,890$ 630,890$ 607,557$ (23,333)$ Total Operating Revenues 630,890 630,890 607,557 (23,333) Operating Expenses Salaries and Benefits 276,097 277,489 281,262 3,773 Supplies 84,415 84,415 92,488 8,073 Maintenance 118,740 118,740 107,796 (10,944) Purchased Professional Services 18,000 18,000 11,665 (6,335) Purchased Property Services 9,804 9,804 10,231 427 Other Services 26,551 26,551 28,795 2,244 Reimbursed Administrative 85,000 85,000 85,000 0 Total Operating Expenses 618,607 619,999 617,237 (2,762) Operating Income (Loss)12,283 10,891 (9,680)(20,571) Nonoperating Revenue Investment Income 0 0 (4,108)(4,108) Total Nonoperating Revenue 0 0 (4,108)(4,108) Net Income (Loss)12,283$ 10,891$ (13,788)$ (24,679)$ See reconciliation to GAAP on page 158. 148 CITY OF COLLEGE STATION, TEXAS EMPLOYEE BENEFITS FUND SCHEDULE OF REVENUES AND EXPENSES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2002 Original Budget Revised Budget Actual Variance Over (Under) Operating Revenues Premiums 3,738,100$ 3,738,100$ 3,699,794$ (38,306)$ Total Operating Revenues 3,738,100 3,738,100 3,699,794 (38,306) Operating Expenses Claims 3,194,800 3,194,800 1,071,639 (2,123,161) Administrative Fees 201,500 201,500 129,737 (71,763) Premiums 323,000 323,000 2,170,034 1,847,034 Reimbursed Administrative 16,000 16,000 345 (15,655) Total Operating Expenses 3,735,300 3,735,300 3,371,755 (363,545) Operating Income 2,800 2,800 328,039 325,239 Nonoperating Revenues (Expenses) Investment Income 100 100 35,054 34,954 Other, Net (6,000)(6,000)(392)5,608 Total Nonoperating Revenues (Expenses)(5,900)(5,900)34,662 40,562 Net Income (Loss)(3,100)$ (3,100)$ 362,701$ 365,801$ See reconciliation to GAAP on page 158. 149 CITY OF COLLEGE STATION, TEXAS EQUIPMENT REPLACEMENT FUND SCHEDULE OF REVENUES AND EXPENSES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2002 Original Budget Revised Budget Actual Variance Over (Under) Operating Revenues Charges for Goods and Services 2,831,552$ 2,831,552$ 2,881,093$ 49,541$ Total Operating Revenues 2,831,552 2,831,552 2,881,093 49,541 Operating Expenses Supplies 0 0 1,135 1,135 Capital Outlay 2,071,975 2,464,153 2,003,738 (460,415) Total Operating Expenses 2,071,975 2,464,153 2,004,873 (459,280) Operating Income 759,577 367,399 876,220 508,821 Nonoperating Revenues (Expenses) Investment Income 235,000 235,000 265,344 30,344 Damage Reimbursement 0 0 55,595 55,595 Proceeds from Long-Term Debt 0 0 868,800 868,800 Debt Issuance Cost 0 0 (4,500)(4,500) Other, Net 0 0 21,650 21,650 Total Nonoperating Revenues (Expenses)235,000 235,000 1,206,889 971,889 Net Income 994,577$ 602,399$ 2,083,109$ 1,480,710$ See reconciliation to GAAP on page 158. 150 CITY OF COLLEGE STATION, TEXAS FLEET MAINTENANCE FUND SCHEDULE OF REVENUES AND EXPENSES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2002 Original Budget Revised Budget Actual Variance Over (Under) Operating Revenues Charges for Goods and Services 1,245,765$ 1,245,765$ 1,295,567$ 49,802$ Total Operating Revenues 1,245,765 1,245,765 1,295,567 49,802 Operating Expenses Salaries and Benefits 617,607 622,268 591,057 (31,211) Supplies 410,476 410,476 454,322 43,846 Maintenance 25,781 25,781 20,585 (5,196) Purchased Professional Services 3,996 3,996 2,095 (1,901) Purchased Property Services 20,609 20,609 15,677 (4,932) Other Services 28,412 28,412 24,540 (3,872) Reimbursed Administrative 130,397 130,397 130,397 0 Capital Outlay 13,000 13,000 10,589 (2,411) Other 0 0 64,999 64,999 Contingency 16,500 16,711 0 (16,711) Total Operating Expenses 1,266,778 1,271,650 1,314,261 42,611 Operating Income (Loss)(21,013)(25,885)(18,694)7,191 Nonoperating Revenues (Expenses) Investment Income 0 0 (4,379)(4,379) Other, Net 0 0 (1,079)(1,079) Total Nonoperating Revenues (Expenses)0 0 (5,458)(5,458) Net Income (Loss) Before Operating Transfers (21,013)(25,885)(24,152)1,733 Operating Transfers In 0 0 858 858 Net Income (Loss)(21,013)$ (25,885)$ (23,294)$ 2,591$ See reconciliation to GAAP on page 158. 151 CITY OF COLLEGE STATION, TEXAS PRINT/MAIL SERVICES FUND SCHEDULE OF REVENUES AND EXPENSES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2002 Original Budget Revised Budget Actual Variance Under (Over) Operating Revenues Charges for Goods and Services 344,489$ 344,489$ 372,288$ 27,799$ Total Operating Revenues 344,489 344,489 372,288 27,799 Operating Expenses Salaries and Benefits 166,004 167,195 183,690 16,495 Supplies 72,310 72,310 104,432 32,122 Maintenance 9,089 9,089 5,708 (3,381) Purchased Professional Services 0 0 48 48 Purchased Property Services 49,235 49,235 41,208 (8,027) Other Services 8,784 8,784 5,484 (3,300) Reimbursed Administrative 41,138 41,138 41,138 0 Capital Outlay 0 0 12,596 12,596 Total Operating Expenses 346,560 347,751 394,304 46,553 Operating Loss (2,071)(3,262)(22,016)(18,754) Nonoperating Revenues (Expenses) Investment Income 0 0 (390)(390) Other, Net 0 201 17,935 17,734 Total Nonoperating Revenues (Expenses)0 201 17,545 17,344 Net Loss (2,071)$ (3,061)$ (4,471)$ (1,410)$ See reconciliation to GAAP on page 158. 152 CITY OF COLLEGE STATION, TEXAS PROPERTY AND CASUALTY FUND SCHEDULE OF REVENUES AND EXPENSES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2002 Original Budget Revised Budget Actual Variance Over (Under) Operating Revenues Premiums 416,670$ 416,670$ 418,997$ 2,327$ Total Operating Revenues 416,670 416,670 418,997 2,327 Operating Expenses Claims 180,000 180,000 272,657 92,657 Administrative Fees 0 0 3,500 3,500 Premiums 235,200 235,200 236,529 1,329 Reimbursed Administrative 70,564 70,564 70,564 0 Contingency 12,000 12,000 0 (12,000) Other 0 0 8,508 8,508 Total Operating Expenses 497,764 497,764 591,758 93,994 Operating Loss (81,094)(81,094)(172,761)(91,667) Nonoperating Revenues (Expenses) Investment Income 28,000 28,000 20,146 (7,854) Reimbursed Expenses 75,000 75,000 106,967 31,967 Other, Net 4,000 4,000 0 (4,000) Total Nonoperating Revenues (Expenses)107,000 107,000 127,113 20,113 Net Income (Loss)25,906$ 25,906$ (45,648)$ (71,554)$ See reconciliation to GAAP on page 158. 153 CITY OF COLLEGE STATION, TEXAS UNEMPLOYMENT FUND SCHEDULE OF REVENUES AND EXPENSES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2002 Original Budget Revised Budget Actual Variance Over (Under) Operating Expenses Claims 25,000$ 25,000$ 8,711$ (16,289)$ Total Operating Expenses 25,000 25,000 8,711 (16,289) Operating Income (Loss)(25,000)(25,000)(8,711)16,289 Nonoperating Revenues Investment Income 6,000 6,000 5,461 (539) Total Nonoperating Revenues 6,000 6,000 5,461 (539) Net Income (Loss)(19,000)$ (19,000)$ (3,250)$ 15,750$ See reconciliation to GAAP on page 158. 154 CITY OF COLLEGE STATION, TEXAS UTILITY BILLING FUND SCHEDULE OF REVENUES AND EXPENSES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2002 Original Budget Revised Budget Actual Variance Over (Under) Operating Revenues Charges for Goods and Services 1,995,200$ 1,995,200$ 1,995,200$ 0$ Miscellaneous 175,100 175,100 162,260 (12,840) Total Operating Revenues 2,170,300 2,170,300 2,157,460 (12,840) Operating Expenses Salaries and Benefits 1,136,440 1,144,817 1,110,531 (34,286) Supplies 62,440 62,440 55,089 (7,351) Maintenance 39,200 39,200 36,537 (2,663) Purchased Professional Services 3,820 3,820 3,755 (65) Purchased Property Services 30,088 30,088 37,407 7,319 Other Services 278,195 278,195 203,755 (74,440) Reimbursed Administrative 595,487 595,487 595,487 0 Capital Outlay 0 49,664 0 (49,664) Contingency 30,000 30,671 0 (30,671) Total Operating Expenses 2,175,670 2,234,382 2,042,561 (191,821) Operating Income (Loss)(5,370)(64,082)114,899 178,981 Nonoperating Revenues Investment Income 4,200 4,200 6,244 2,044 Other, Net 0 0 514 514 Total Nonoperating Revenues 4,200 4,200 6,758 2,558 Net Income (Loss)(1,170)$ (59,882)$ 121,657$ 181,539$ See reconciliation to GAAP on page 158. 155 CITY OF COLLEGE STATION, TEXAS WORKERS' COMPENSATION FUND SCHEDULE OF REVENUES AND EXPENSES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2002 Original Budget Revised Budget Actual Variance Over (Under) Operating Revenues Premiums 213,767$ 213,767$ 308,934$ 95,167$ Total Operating Revenues 213,767 213,767 308,934 95,167 Operating Expenses Administrative Fees 70,000 70,000 1,475 (68,525) Claims 250,000 250,000 172,707 (77,293) Premiums 0 0 85,996 85,996 Reimbursed Administrative 70,564 70,564 70,564 0 Contingency 10,000 10,000 0 (10,000) Total Operating Expenses 400,564 400,564 330,742 (69,822) Operating Income (Loss)(186,797)(186,797)(21,808)164,989 Nonoperating Revenues (Expenses) Investment Income 5,172 5,172 13,542 8,370 Other, Net 0 0 (13,510)(13,510) Total Nonoperating Revenues (Expenses)5,172 5,172 32 (5,140) Net Income (Loss)(181,625)$ (181,625)$ (21,776)$ 159,849$ See reconciliation to GAAP on page 158. 156 CITY OF COLLEGE STATION, TEXAS INTERNAL SERVICE FUNDS SCHEDULE FOR RECONCILIATION OF REVENUES AND EXPENSES (BUDGETARY BASIS) TO GAAP BASIS STATEMENT OF INCOME For the Fiscal Year Ended September 30, 2002 Communication Employee Equipment Fleet Print/Mail Services Benefits Replacement Maintenance Services Total Revenues Per Budget - Actual 603,449$ 3,734,848$ 4,092,482$ 1,292,046$ 389,833$ Less Total Expenses Per Budget - Actual 617,237 3,372,147 2,009,373 1,315,340 394,304 Net Income (Loss), Budgetary Basis (13,788)362,701 2,083,109 (23,294)(4,471) Add (Subtract) - Expenses (Revenues) Related to Balance Sheet: Reverse Capital Outlay 2,546 0 2,003,738 10,589 12,596 Adjust Accrued Vacation 3,078 0 0 (4,535)(420) Add (Subtract) - Unbudgeted Revenues (Expenses) Adjustments FY'01 Depreciation (102,925)0 (2,194,671)(25,851)(10,705) Current Year Revenue Accrual 0 0 0 0 0 Adjust Claims Payable 0 261,981 0 0 0 Prior Year Revenue Accrual 0 0 0 0 0 FY'01 Bad Debt Expense 0 0 0 0 0 Inventory Adjustment 0 0 0 14,457 0 Investment Accrual and FV Adjustment 474 (3,307)(43,395)557 (109) Reclass Proceeds from Long Term Debt 0 0 (868,800)0 0 Accrue FY'02 Revenue 0 0 0 2,653 0 Loss on Sale of Equipment 0 0 (10,710)0 0 Net Payroll Adjustment (1,803)0 0 (4,106)(1,243) Other, Net 2 0 617 (3)(11) Net Income (Loss), GAAP Basis (112,416)$ 621,375$ 969,888$ (29,533)$ (4,363)$ 158 Property and Workers' Casualty Unemployment Utility Billing Compensation 546,110$ 5,461$ 2,164,218$ 322,476$ 591,758 8,711 2,042,561 344,252 (45,648)(3,250)121,657 (21,776) 0 0 0 0 0 0 219 0 0 0 (51,656)0 0 0 4,252 0 (19,173)0 0 24,093 0 0 (6,585)0 0 0 (12,608)0 0 0 0 0 (5,188)(1,277)731 (3,416) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 (6,584)0 0 0 (748)0 (70,009)$ (4,527)$ 48,678$ (1,099)$ 159 161 TRUST FUNDS Trust Funds are used to account for assets held by the City in a trustee capacity. Cemetery Perpetual Care Non-Expendable Trust Fund - to account for principal trust amounts received and related interest income for the College Station cemetery. CITY OF COLLEGE STATION, TEXAS CEMETERY PERPETUAL CARE FUND BALANCE SHEET SEPTEMBER 30, 2002 Current Assets Equity in Cash and Cash Equivalents 398,446$ Equity in Investments 336,694 Receivables Accrued Interest 3,771 Accounts 3,191 Less Allowance for Uncollectible Accounts (679) Inventories 3,226 Total Assets 744,649$ Liabilities and Fund Balances Liabilities Accounts Payable 1,582$ Total Liabilities 1,582 Fund Balances Reserved Reserved for Perpetual Care 743,067 Total Fund Balances 743,067 Total Liabilities and Fund Balances 744,649$ 162 CITY OF COLLEGE STATION, TEXAS CEMETERY PERPETUAL CARE FUND STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCE For the Fiscal Year Ended September 30, 2002 Revenues Sale of Cemetery Lots 90,618$ Investment Income 25,289 Contributions 5,125 Other 0 Total Revenues 121,032 Operating Expenses Maintenance 6,094 Other 7,434 Total Operating Expenses 13,528 Net Income 107,504 Fund Balances, October 1 635,563 Fund Balances, September 30 743,067$ 163 CITY OF COLLEGE STATION, TEXAS CEMETERY PERPETUAL CARE FUND STATEMENT OF CASH FLOWS For the Fiscal Year Ended September 30, 2002 Nonexpendable Trust Cash Flows from Operating Activities: Cash Received from Customers 104,001$ Cash Payments to Suppliers for Goods and Services (13,540) Cash Received from Contributions 5,125 Cash Received for Miscellaneous Revenues 0 Net Cash Provided by Operating Activities 95,586 Cash Flows from Investing Activities: Purchase of Investments (517,684) Proceeds from Sale and Maturities of Investment Securities 496,358 Investment Income 28,257 Net Cash Provided by Investing Activities 6,931 Net Increase in Cash and Cash Equivalents 102,517 Cash and Cash Equivalents, October 1 295,929 Cash and Cash Equivalents, September 30 398,446$ Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities: Operating Income 107,504$ Adjustment to Reconcile Operating Income to Net Cash Provided (Used) by Operating Activities: Investment Income (25,289) Change in Assets and Liabilities: Change in Accounts Receivable 14,062 Change in Inventory 0 Change in Accounts Payable (691) Total Adjustments (11,918) Net Cash Provided by Operating Activities 95,586$ 164 165 GENERAL FIXED ASSETS ACCOUNT GROUP To account for fixed assets not used in proprietary fund operations. General Fixed Assets: Building and Building Improvements 19,280,202$ Improvements 58,129,551 Machinery and Equipment 11,959,334 Parks System 14,743,069 Construction in Progress 18,000,215 Land 18,240,824 Total General Fixed Assets 140,353,195$ Investment in General Fixed Assets from: Capital Projects 98,903,932$ General Fund Revenues 8,943,070 Special Revenue Funds 5,850,624 Contributions 19,733,532 Acquisitions Prior to July 1, 1979 - Source Undetermined 6,922,037 Total Investment in General Fixed Assets 140,353,195$ CITY OF COLLEGE STATION, TEXAS GENERAL FIXED ASSETS ACCOUNT GROUP SCHEDULE OF GENERAL FIXED ASSETS BY SOURCE September 30, 2002 167 Buildings and Machinery Building Tools and Total Land Improvements Equipment General Fund: General Government 776,466$ $0 101,868$ 516,965$ Fiscal/Human Resources 545,519 0 10,654 534,865 Public Services 800,746 1,500 45,028 700,673 Police 699,902 0 18,571 681,331 Fire 1,075,317 0 3,869 1,071,448 Development Services 419,361 0 11,140 407,725 Parks 1,410,678 0 283,803 564,769 Management Services 1,208,383 0 9,223 1,199,160 Other 1,404,091 1,404,091 0 0 Library 303,265 40,000 0 263,265 Economic Development 245,693 14,470 180,404 0 Total General Fund 8,889,421 1,460,061 664,560 5,940,201 Special Revenue Funds: Parks Escrow 495,712 39,667 0 1,300 Federal Grants 3,897,770 349,062 514,205 57,601 Hotel/Motel 115,358 115,358 0 0 Other 1,185,621 33,413 1,099,647 32,509 Total Special Revenue Funds 5,694,461 537,500 1,613,852 91,410 Capital Projects Funds: Certificate of Obligation 1,732,352 637,168 400,000 695,184 Capital Equipment 3,450,574 0 274,985 3,076,077 Southwest Parkway 642,231 0 0 0 1971 Bond Fund 172,838 0 0 0 1976 Bond Fund 126,377 0 1,495 0 1978 Bond Fund 533,706 0 25,141 0 1978II Bond Fund 2,803,997 485,325 579,005 13,967 1981 Bond Fund 1,904,043 224,979 1,114,176 930 1982 Bond Fund 3,898,839 372,834 1,237,290 284,443 1982II Bond Fund 10,458,784 1,734,849 1,488,468 694,379 1984 Bond Fund 9,656,153 799,116 4,136,771 170,717 1989 Bond Fund 2,506,805 91,112 583,492 14,561 1991 Bond Fund 6,236,990 13,794 0 0 1995 Bond Fund 5,420,628 776,854 2,353,744 0 General Government Projects 3,531,386 1,613,889 1,682,636 191,511 Parks Project Fund 5,154,962 1,503,117 0 0 Streets Project Fund 11,987,841 1,383,851 0 244,108 College Station Business Park Fund 9,244,649 4,828,797 1,045,793 0 Northgate Revitalization 1,214,451 257,854 126,937 0 Drainage Fund 435,925 63,117 0 0 Total Capital Projects Funds 81,113,531 14,786,656 15,049,933 5,385,877 Contributions/Donations 19,733,532 0 0 3,890 Acquisitions Prior to July 1, 1979 - Source Undetermined 6,922,035 1,456,607 1,951,857 537,956 Total General Fixed Assets Allocated to Functions 122,352,980 18,240,824 19,280,202 11,959,334 Contruction in Progress 18,000,215 0 3,432,739 621,324 Total General Fixed Assets 140,353,195$ 18,240,824$ 22,712,941$ 12,580,658$ CITY OF COLLEGE STATION, TEXAS GENERAL FIXED ASSET ACCOUNT GROUP SCHEDULE OF GENERAL FIXED ASSETS BY SOURCE, FUNCTION AND ACTIVITY September 30, 2002 168 Parks System Improvements 7,633$ $150,000 0 0 53,545 0 0 0 0 0 0 496 562,106 0 0 0 0 0 0 0 0 50,819 623,284 201,315 454,745 0 373,866 2,603,036 0 0 0 20,052 828,611 2,623,088 0 0 89,835 9,677 0 642,231 0 172,838 13,249 111,633 162,399 346,166 1,070,353 655,347 22,568 541,390 423,381 1,580,891 4,633,604 1,907,484 589,711 3,959,838 5,574 1,812,066 1,591,370 4,631,826 225,076 2,064,954 0 43,350 3,651,845 0 0 10,359,882 0 3,370,059 0 829,660 0 372,808 12,478,965 33,412,100 0 19,729,642 812,209 2,163,406 14,743,069 58,129,551 4,101,361 9,844,791 18,844,430$ 67,974,342$ 169 General Fixed General Fixed Assets Transfers/Assets 09/30/01 Additions Retirements Other 09/30/02 Function and Activity General Fund: General Government 626,466$ 150,000$ $0 $0 776,466$ Fiscal and Human Resources 505,065 40,454 0 0 545,519 Public Services 864,573 4,617 (68,444)0 800,746 Police 628,542 85,834 (14,474)0 699,902 Fire 1,060,127 65,099 (49,909)0 1,075,317 Development Services 419,361 0 0 0 419,361 Parks 1,248,360 182,228 (19,910)0 1,410,678 Management Services 1,147,620 60,763 0 0 1,208,383 Other 1,404,091 0 0 0 1,404,091 Library 240,000 63,265 0 0 303,265 Economic Development 245,693 0 0 0 245,693 Total General Fund 8,389,898 652,260 (152,737)0 8,889,421 Special Revenue Funds: Federal Grants 3,897,282 488 0 0 3,897,770 Parks Escrow 453,241 42,471 0 0 495,712 Other 1,300,979 0 0 0 1,300,979 Total Special Revenue Funds 5,651,502 42,959 0 0 5,694,461 Capital Projects Funds: Certificates of Obligation 1,732,352 0 0 0 1,732,352 Southwest Parkway 642,231 0 0 0 642,231 1971 Bond Funds 172,838 0 0 0 172,838 1976 Bond Funds 126,377 0 0 0 126,377 1978 Bond Funds 533,706 0 0 0 533,706 1978 II Bond Funds 2,803,997 0 0 0 2,803,997 1981 Bond Funds 1,904,043 0 0 0 1,904,043 1982 Bond Funds 3,898,839 0 0 0 3,898,839 1982 II Bond Funds 10,458,784 0 0 0 10,458,784 1984 Bond Funds 9,656,153 0 0 0 9,656,153 1989 Bond Funds 2,506,805 0 0 0 2,506,805 1991 Bond Funds 6,236,990 0 0 0 6,236,990 1995 Bond Funds 5,420,628 0 0 0 5,420,628 General Government Projects 3,344,732 186,654 0 0 3,531,386 Parks Projects Fund 4,958,370 196,592 0 0 5,154,962 Streets Projects Fund 10,075,515 1,912,326 0 0 11,987,841 College Station Business Park 9,188,447 56,202 0 0 9,244,649 Northgate Revitalization 1,214,451 0 0 0 1,214,451 Drainage Fund 210,817 225,108 0 0 435,925 Capital Equipment 3,417,757 32,817 0 0 3,450,574 Total Capital Projects Funds 78,503,832 2,609,699 0 0 81,113,531 Contributions/Donations 16,231,699 3,501,833 0 0 19,733,532 Acquisitions Prior to July 1, 1979 - Source Undetermined 6,922,035 0 0 0 6,922,035 Construction in Progress 7,975,585 13,246,440 (3,221,810)0 18,000,215 Total General Fixed Assets 123,674,551$ 20,053,191$ (3,374,547)$ $0 140,353,195$ CITY OF COLLEGE STATION, TEXAS GENERAL FIXED ASSET ACCOUNT GROUP SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY For the Fiscal Year Ended September 30, 2002 170 171 STATISTICAL SECTION 172 CITY OF COLLEGE STATION, TEXAS GENERAL GOVERNMENTAL REVENUES AND OTHER FINANCING SOURCES (1) LAST TEN FISCAL YEARS Fiscal Year General Property Tax Franchise Fees Sales & Mixed Drink Tax Licenses & Permits Fines, Forfeits & Penalties 1993 $1,627,228 $407,168 $7,995,877 $445,585 $893,649 1994 2,086,274 358,392 8,776,093 557,440 915,126 1995 2,365,740 485,368 9,008,363 523,725 1,003,547 1996 2,632,408 1,876,572 (2)9,605,208 513,624 1,342,865 1997 2,733,016 1,088,349 9,929,157 487,300 1,177,057 1998 2,753,863 1,415,464 11,107,446 577,032 1,233,604 1999 3,139,361 1,523,736 11,662,546 643,968 1,208,499 2000 3,420,720 1,577,815 12,759,591 680,776 1,393,505 2001 3,813,167 1,644,627 13,031,079 779,159 1,796,203 2002 4,555,345 1,714,241 13,634,978 870,636 2,225,354 (1)Revenues presented include the General and Debt Service Funds. (2) Increase due to a one-time recovery of back franchise fees in the amount of $1.2 million. Source: City of College Station 10.0 20.0 30.0 40.0 Dollars (millions)'93 '94 '95 '96 '97 '98 '99 '00 '01 '02S1 Fiscal Year Total General Governmental Revenues & Other Financing Sources (for the last ten fiscal years) 173 GENERAL GOVERNMENTAL REVENUES AND OTHER FINANCING SOURCES (1) LAST TEN FISCAL YEARS Charges for Services Operating Transfers All Other Other Financing Sources Debt Service Property Tax Total $904,004 $4,266,504 $800,690 $68,213 $3,351,369 $20,760,287 1,066,268 4,407,529 760,676 2,731,232 3,634,353 25,293,383 1,181,703 4,915,000 1,009,282 3,478,224 4,124,236 28,095,188 1,249,491 5,523,091 962,608 199,300 4,583,665 28,488,832 1,250,952 5,387,075 1,304,713 6,828,120 4,801,894 34,987,633 1,368,883 5,396,700 1,324,899 32,375 5,024,027 30,234,293 1,463,432 5,664,744 1,414,194 22,082 5,133,118 31,875,680 1,681,877 6,303,785 1,622,967 55,403 5,546,863 35,043,302 1,892,964 6,895,193 1,750,703 24,329 5,986,114 37,613,538 2,160,678 7,288572 1,369,579 30,106 7,160,962 41,010,751 174 CITY OF COLLEGE STATION, TEXAS GENERAL GOVERNMENTAL EXPENDITURES AND OTHER USES BY FUNCTION (1) LAST TEN FISCAL YEARS Fiscal Year General Government Police Fire Public Works Parks and Recreation 1993 $5,289,911 $4,054,244 $3,331,309 $2,266,145 $2,838,541 1994 5,923,568 4,715,064 3,454,391 2,533,983 3,083,389 1995 6,832,606 5,041,596 3,827,835 2,428,727 3,629,244 1996 6,669,982 5,357,437 3,887,596 3,554,664 3,820,477 1997 7,005,557 5,860,586 3,898,305 3,142,284 4,146,567 1998 6,264,446 6,289,005 4,195,334 3,821,635 4,263,428 1999 7,045,038 6,903,838 4,841,832 3,923,009 4,592,990 2000 7,812,664 7,567,620 5,179,104 4,353,073 5,168,231 2001 8,783,263 8,273,632 5,702,804 4,583,796 5,185,737 2002 9,731,964 8,914,893 6,405,874 5,211,720 6,045,622 (1)Expenditures presented include the General and Debt Service Funds. (2)Includes refunding of $3,460,000 of short term debt. Source: City of College Station 10.0 20.0 30.0 40.0 Dollars (millions)'93 '94 '95 '96 '97 '98 '99 '00 '01 '02 Fiscal Year Total General Governmental Expenditures and Other Uses (for the last ten fiscal years) 175 CITY OF COLLEGE STATION, TEXAS GENERAL GOVERNMENTAL EXPENDITURES AND OTHER USES BY FUNCTION (1) LAST TEN FISCAL YEARS Library Services Capital Outlay Reimbursed Administrative All Other Debt Service Operating Transfers Out Total $283,478 $412,314 $(2,843,580)$398,100 $3,508,905 $0 $19,539,367 282,255 1,120,536 (2,886,557)251,454 3,320,922 445,000 22,244,005 327,393 480,470 (2,966,008)298,041 7,364,085 (2)2,438,668 29,702,657 326,310 593,796 (3,371,737)314,767 5,601,567 80,500 26,835,359 367,545 365,591 (3,240,805)336,410 4,517,030 6,761,040 33,160,110 546,437 641,779 (3,683,731)448,263 4,607,064 2,478,117 29,871,777 571,742 659,861 (4,034,541)344,589 4,997,131 757,030 30,602,519 600,778 397,312 (4,645,701)544,170 5,582,927 1,115,376 33,675,554 581,768 376,328 (5,287,928)606,757 7,700,234 767,000 37,273,391 734,083 150,000 (5,823,852)305,049 9,384,142 480,807 41,540,302 176 CITY OF COLLEGE STATION, TEXAS PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS Fiscal Year Total Tax Levy Tax Collections Percent of Levy Collected Delinquent Tax Collections 1993 $4,902,798 $4,816,407 98.24 %$107,407 1994 5,681,754 5,591,040 98.40 129,587 1995 6,471,493 6,403,250 98.95 86,727 1996 7,171,715 7,086,990 98.82 74,982 1997 7,506,754 7,433,046 99.02 60,133 1998 7,758,131 7,688,127 99.10 50,005 1999 8,292,212 8,164,162 98.46 59,095 2000 9,068,352 8,866,966 97.78 47,940 2001 9,939,852 9,684,038 97.43 62,887 2002 11,892,629 11,570,787 97.29 80,751 Source: City of College Station 3.5 4.5 5.5 6.5 7.5 8.5 9.5 10.5 11.5 Dollars (millions)'93 '94 '95 '96 '97 '98 '99 '00 '01 '02 Fiscal Year Total Tax Collections (for the last ten fiscal years) 177 CITY OF COLLEGE STATION, TEXAS PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS Total Tax Collections Total Collections as a Percent of Current Levy Outstanding Delinquent Taxes Outstanding Delinquent Taxes as a Percent of Current Levy $4,923,814 100.43 %$324,685 6.62 % 5,720,627 100.68 282,137 4.97 6,489,977 100.29 249,879 3.86 7,161,972 99.86 233,927 3.26 7,493,179 99.82 215,100 2.87 7,738,132 99.74 233,548 3.01 8,223,257 99.17 200,077 2.41 8,914,906 98.31 134,418 1.48 9,746,925 98.06 248,883 2.50 11,651,538 97.97 328,666 2.76 178 179 CITY OF COLLEGE STATION, TEXAS ASSESSED VALUE OF TAXABLE PROPERTIES (1) LAST TEN FISCAL YEARS Fiscal Year Land and Improvements Personal Property and Minerals Less Exemptions and Abatements Less TIF (2) Captured Value Total 1993 $1,184,748,445 $168,378,927 $164,570,381 0 $1,188,556,991 1994 1,145,143,509 172,473,765 41,945,080 0 1,275,672,194 1995 1,315,229,397 183,852,688 44,813,941 0 1,454,268,144 1996 1,500,298,696 158,694,184 47,371,511 0 1,611,621,369 1997 1,699,990,449 235,332,211 234,121,234 5,526,343 1,695,675,083 1998 1,813,136,426 251,996,841 245,085,209 12,889,738 1,807,158,320 1999 1,946,701,852 261,317,181 276,453,209 18,504,453 1,913,061,371 2000 2,134,828,786 285,990,138 308,471,247 37,318,353 2,075,029,324 2001 2,357,679,796 303,435,454 345,752,888 41,698,188 2,273,664,174 2002 2,565,933,396 304,577,588 380,950,901 39,379,860 2,450,180,223 (1) Assessed Value is 100% of the estimated actual value. (2) Tax Increment Financing District (TIF) Sources:Brazos County Appraisal District 2001 Certified Appraisal Roll 1.00 1.20 1.40 1.60 1.80 2.00 2.20 2.40 Dollars (billions)'93 '94 '95 '96 '97 '98 '99 '00 '01 '02 Fiscal Year Assessed Value of Taxable Properties (for the last ten fiscal years) 180 CITY OF COLLEGE STATION, TEXAS PROPERTY TAX RATES, RATIOS AND LEVIES ALL DIRECT AND OVERLAPPING GOVERNMENTS LAST TEN FISCAL YEARS Tax Rates (2) (Per $100 of Assessed Value) Fiscal Year (1)City School County Total (3) 1993 $.4125 $1.680 $.439 $2.5315 1994 .4450 1.630 .434 2.5090 1995 .4450 1.610 .418 2.4730 1996 .4450 1.610 .410 2.4650 1997 .4427 1.690 .418 2.5507 1998 .4293 1.740 .417 2.5863 1999 .4293 1.750 .417 2.5963 2000 .4293 1.750 .417 2.5963 2001 .4293 1.750 .410 2.5893 2002 .4777 1.790 .420 2.6877 (1)Tax rates are established by each taxing jurisdiction on an annual basis for revenues to be collected in the following fiscal year. (2)The date that taxes are due for all jurisdictions is October 1. Taxes for all jurisdictions become delinquent on February 1. The penalty is set by state law at 6% in February, and an additional 1% per month up to 12%. The interest is accrued at 1% per month. (3)The upper limit of the tax rate is set at $2.50/$100 of assessed value for each jurisdiction by State Statute. This limit is for both operations and debt service combined. Source: Brazos County Appraisal District 181 CITY OF COLLEGE STATION, TEXAS PROPERTY TAX RATES, RATIOS AND LEVIES ALL DIRECT AND OVERLAPPING GOVERNMENTS LAST TEN FISCAL YEARS Tax Ratios Original Tax Levies City School County City School County 100 %100 %100 %$4,902,806 $21,608,259 $12,789,846 100 100 100 5,681,754 23,390,262 13,374,336 100 100 100 6,471,498 26,261,015 14,211,900 100 100 100 7,171,715 28,663,937 15,071,727 100 100 100 7,506,754 31,524,892 15,968,203 100 100 100 7,758,131 33,969,261 17,043,370 100 100 100 8,292,212 36,786,152 17,749,813 100 100 100 9,068,352 39,822,571 18,917,599 100 100 100 9,939,852 44,121,783 20,283,475 100 100 100 11,892,630 48,527,735 22,629,312 0.0 0.5 1.0 1.5 2.0 2.5 Dollars(per $100 of Assessed Value)'93 '94 '95 '96 '97 '98 '99 '00 '01 '02 Fiscal Year Property Tax Rates (for the last ten fiscal years) City School County 182 CITY OF COLLEGE STATION, TEXAS PAVING ASSESSMENT COLLECTIONS LAST TEN FISCAL YEARS Fiscal Year Current Assessment Assessment s Collected Percentage of Assessments Collected (%) Total Outstanding Assessments 1993 $0 58,358 28.95%$143,250 1994 0 4,779 3.34 138,471 1995 0 59,141 42.71 79,330 1996 0 17,217 21.70 62,113 1997 0 2,152 3.46 59,962 1998 0 36,367 60.65 23,595 1999 0 503 2.13 23,092 2000 0 1,296 5.61 21,796 2001 0 350 1.61 21,446 2002 0 0 0 21,796 Source: City of College Station Fiscal Services Department 183 CITY OF COLLEGE STATION, TEXAS COMPUTATION OF LEGAL DEBT MARGIN SEPTEMBER 30, 2002 The City has no general obligation legal debt limit other than a ceiling on the tax rate as specified by the State of Texas. The prescribed maximum is $2.50 per $100 at 100% valuation. 184 CITY OF COLLEGE STATION, TEXAS RATIO OF NET GENERAL BONDED DEBT TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA LAST TEN FISCAL YEARS Fiscal Year Estimated Population Assessed Value Gross Bonded Debt 1993 54,449 (1)$1,188,556,991 $19,014,385 1994 56,374 (1)1,275,672,194 17,028,340 1995 58,627 (1)1,454,268,144 25,722,210 1996 60,040 (1)1,611,621,369 22,263,475 1997 61,525 (1)1,695,675,083 25,388,915 1998 63,130 (1)1,807,158,320 28,960,000 1999 66,200 (1)1,913,061,371 32,750,000 2000 68,038 (2)2,075,029,324 38,700,000 2001 70,308 (1)2,273,664,174 39,375,000 2002 72,500 (1)2,450,180,223 41,665,000 (1)Source: Metropolitan Planning Organization & City of College Station Planning Division (2)Source: U.S. Government Preliminary Census 185 CITY OF COLLEGE STATION, TEXAS RATIO OF NET GENERAL BONDED DEBT TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA LAST TEN FISCAL YEARS Less Debt Service Cash Funds Net Bonded Debt Ratio of Net Bonded Debt To Assessed Valuation Net Bonded Debt Per Capita $870,035 $18,144,350 1.53 $333 1,364,212 15,664,128 1.23 278 1,845,774 23,876,436 1.64 407 1,189,570 21,073,905 1.31 351 1,947,403 23,441,512 1.38 381 2,826,148 26,133,852 1.45 414 3,472,280 29,277,720 1.53 442 4,202,042 34,497,958 1.66 507 1,722,254 37,652,746 1.66 536 1,287,038 40,377,962 1.65 557 275 325 375 425 475 525 575 Dollars'93 '94 '95 '96 '97 '98 '99 '00 '01 '02 S1 Fiscal Year Net Bonded Debt per Capita (for the last ten fiscal years) 186 CITY OF COLLEGE STATION, TEXAS SCHEDULE OF DIRECT AND ESTIMATED OVERLAPPING DEBT SEPTEMBER 30, 2002 Gross Debt City's Share Taxing Body Amount As Of Percent Amount Per Capita * ESTIMATED OVERLAPPING DEBT College Station I.S.D. (1)$ 61,923,354 8/31/02 83.48% $51,693,616 $713 Brazos County (2)26,015,000 9/30/02 46.80 12,175,020 168 Bryan I.S.D. (3)62,717,358 8/31/02 5.17 3,242,487 45 $ 67,111,123 926 NET BONDED DEBT City of College Station(4)74,945,000 9/30/02 100.00 74,945,000 1,034 NET BONDED AND ESTIMATED OVERLAPPING DEBT $ 142,056,123 $ 1960 * Population: 72,500 (1) Source: College Station Independent School District (2) Source: Brazos County Auditor (3) Source: Bryan Independent School District (4) Source: City of College Station Finance Department 187 CITY OF COLLEGE STATION, TEXAS RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL OBLIGATION DEBT TO TOTAL GENERAL GOVERNMENTAL EXPENDITURES AND OTHER USES LAST TEN FISCAL YEARS Fiscal Year Principal Interest, Fiscal and Other Charges Total Debt Service Total General Governmental Expenditures and Other Uses Ratio 1993 $2,111,906$1,396,999 $3,508,905 $19,539,367 17.96% 1994 2,066,045 1,254,877 3,320,922 22,244,005 14.93 1995 5,796,130 (1)1,519,907 7,316,037 29,702,657 24.63 1996 3,938,735 1,660,441 5,599,176 26,835,359 20.86 1997 2,694,075 1,738,745 4,432,820 33,160,110 13.37 1998 3,113,915 1,483,793 4,597,708 29,871,777 15.39 1999 2,845,000 2,141,792 4,986,792 30,602,519 16.30 2000 3,460,000 2,122,927 5,582,927 33,675,554 16.58 2001 4,475,000 3,222,734 7,697,734 37,273,391 20.65 2002 5,950,000 3,434,142 9,384,142 41,540,302 22.59 (1)Includes refunding of $3,460,000 of short term debt. Source: City of College Station 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 Dollars (millions)'93 '94 '95 '96 '97 '98 '99 '00 '01 '02 Fiscal Year Ratio of Annual Debt Service Expenditures for General Obligation Debt to Total General Governmental Expenditures and Other Uses (for the last ten fiscal years) Debt Service Expense General & Other Total 188 CITY OF COLLEGE STATION, TEXAS UTILITY FUNDS SCHEDULE OF REVENUE BOND COVERAGE LAST TEN FISCAL YEARS Fiscal Year Operating Revenues Operating Expenses (Excluding Depreciation) Net Revenues Average Total Annual Coverage Maximum Total Annual Coverage 1993 $39,637,874 $28,912,833 $10,725,041 $1,683,197 6.37 $4,176,525 2.57 1994 (1)48,291,091 36,190,720 12,100,371 1,553,305 7.79 4,176,525 2.90 1995 (1)47,365,953 34,682,369 12,683,584 2,819,408 4.50 6,099,551 2.08 1996 (2)45,380,036 32,395,644 12,984,392 2,655,401 4.89 6,089,271 2.13 1997 48,615,366 29,608,260 19,007,106 2,968,110 6.40 6,388,449 2.98 1998 49,966,216 27,885,854 22,080,362 3,014,943 7.32 5,906,739 3.74 1999 49,101,104 30,080,145 19,020,959 2,844,899 6.69 5,502,384 3.46 2000 52,932,584 41,925,412 11,007,172 3,472,421 3.17 5,687,161 1.94 2001 59,143,896 45,465,778 13,678,118 4,688,518 2.92 6,395,244 2.14 2002 62,141,066 46,274,555 15,866,511 5,825,064 2.72 8,048,707 1.97 (1) In Fiscal Year 1994, the Utility Billing Fund was combined with the Electric Fund for reporting purposes. (2) In Fiscal Year 1996, the Utility Billing Fund was reported separately as an Internal Service Fund. Source: City of College Station 189 CITY OF COLLEGE STATION, TEXAS CONSTRUCTION PERMITS LAST TEN CALENDAR YEARS Residential Commercial Total Year Number of Permits Value Number of Permits Value Number of Permits Value 1993 576 $38,141,976 203 $27,288,295 779 $65,430,271 1994 583 64,673,810 225 20,505,039 808 85,178,849 1995 634 28,514,709 102 38,130,694 736 66,645,403 1996 656 48,953,298 131 14,432,979 787 63,386,277 1997 590 53,435,022 212 47,682,555 802 101,117,577 1998 655 69,831,880 150 57,439,865 805 127,271,745 1999 1,020 87,917,466 138 26,665,024 1,158 114,582,490 2000 639 85,278,855 162 46,094,230 801 131,373,085 2001 782 79,340,756 191 40,194,722 973 119,535,478 2002 776 58,965,494 177 27,658,030 953 86,623,524 Source: City of College Station Development Services 100 300 500 700 900 1100 1300 Number Issued'93 '94 '95 '96 '97 '98 '99 '00 '01 '02 Fiscal Year Construction Permits (for the last ten fiscal years) Residential Commercial 190 CITY OF COLLEGE STATION, TEXAS PRINCIPAL TAXPAYERS SEPTEMBER 30, 2002 Taxpayer Type of Business 2002 Assessed Valuation Percent of Total Assessed Valuation C.B.L. and Associates Retail Mall $ 48,629,050 1.98% W9/JP-M Real Estate Ltd Housing 39,372,000 1.61 Verizon Communications, Inc.Utility 35,913,250 1.47 Universal Computer Services, Inc.Retail 31,665,535 1.29 Alkosser, David &Housing 30,961,300 1.26 College Station Hospital, L.P.Medical 25,402,560 1.04 Melrose Apartments Housing 21,799,500 0.89 Wal-Mart Stores East, Inc Retail 21,412,710 0.87 College Station Exchange, LP Housing 18,800,000 0.77 301 Church Avenue LP Housing 17,000,000 0.69 TOTAL $ 290,955,905 11.87% Source: Brazos County Appraisal District 191 CITY OF COLLEGE STATION, TEXAS PRINCIPAL UTILITY CUSTOMERS SEPTEMBER 30, 2002 Utility Customer Type of Business FY 2002 KWH Consumption Total Percent of KWH Consumed 303,988College Station Independent School District Schools 16,301,994 2.59 % City of College Station Municipality 14,989,349 2.38 CBL & Associates Retail Mall 14,095,747 2.23 Wal-Mart Stores Inc.Retail 7,736,747 1.22 State Headquarters/TAMU University 7,466,465 1.18 Krogers Retail Grocery 7,356,640 1.16 Albertsons Retail Grocery 7,258,669 1.15 College Station Medical Hospital 6,901,757 1.09 Dealer Computer Services Technical Support 5,187,600 0.82 Lane C/S Ltd PSP Hotel 4,975,200 0.79 TOTAL 92,270,168 14.61 % Total KWH Consumption for the period October 1, 2001 to September 30, 2002 was 629,594,611. Source: City of College Station Utility Billing Division 303,988 192 CITY OF COLLEGE STATION SUMMARY OF INSURANCE COVERAGE September 30, 2002 Insurance Company Coverage Self Insured Retention Limits North River Ins Co.Worker Compensation $250,000 Statutory North River Ins Co.General Liability $250,000 per $5,000,000 per Law Enforcement Liability occurrence occurrence $15,000,000 annual aggregate North River Ins Co.Errors & Omissions Liability $250,000 per $5,000,000 per wrongful act wrongful act $15,000,000 annual aggregate North River Ins Co.Automobile Liability $250,000 per $5,000,000 per occurrence occurrence Texas Municipal League Catastrophe Coverage $100,000 $6,629,431 Texas Municipal League Real & Personal Property $100,000 per replacement cost/ occurrence $68,632,048 annual aggregate Texas Municipal League Mobile Equipment $100,000 per actual cash value/ occurrence $5,095,324 annual aggregate Texas Municipal League Boiler & Machinery $100,000 per $5,000,000 per accident accident Texas Municipal League Public Employee Dishonesty $100,000 per $1,000,000 year annual limit 193 CITY OF COLLEGE STATION, TEXAS MISCELLANEOUS STATISTICAL AND DEMOGRAPHIC DATA SEPTEMBER 30, 2002 Date incorporated October 1938 Date first charter adopted October 1938 Date present charter amended May 1992 Form of government Council-Manager Area in square miles: Year Square Miles 1938 1.5 1948 4.2 1958 7.3 1968 17.3 1978 22.6 1982 23.8 1986 26.7 1988 27.7 1992 28.1 1994 30.0 1996 38.2 1998 40.8 Miles of streets Paved Unpaved 711 Miles 3 Miles Miles of sidewalks 89 Miles Fire Protection: Number of stations 4 Number of full-time employees 81 Police Protection: Number of employees (sworn)99 Number of employees (civilian)49 Number of patrol units 25 One jail facility with a capacity of 17 Recreation: Number of playgrounds 35 Number of basketball courts 22 Number of swimming pools 3 Number of soccer fields 19 Number of softball/baseball fields 19 Number of tennis courts 27 Number of picnic shelters 16 Number of gyms 1 Number of volleyball courts 7 Number of nature trails 4 Number of open play areas 25 Number of picnic pavilions 6 Number of jogging/walking trails 20 (Continued) 194 CITY OF COLLEGE STATION, TEXAS MISCELLANEOUS STATISTICAL AND DEMOGRAPHIC DATA SEPTEMBER 30, 2002 (Continued) Parks: Facility Acres Facility Acres Anderson Park 8.90 Merry Oaks 4.60 Arboretum/Bee Creek 43.50 Oaks Park 7.50 Bill Madeley Park 5.14 Parkway 1.90 Brison Park 9.20 Pebble Creek Park 10.20 Brother's Pond Park 16.12 Raintree 13.00 Castlegate 4.35 Richard Carter Park 7.14 College Station Central Park 47.20 Sandstone 15.21 Conference Center 2.30 Shenandoah 12.10 Cy Miller Park 2.50 Southwest Park Site 4.78 Eastgate 1.80 Southwood Complex 44.70 Edelweiss 12.30 Steeplechase Park Site 9.00 Edelweiss Gardens 7.74 Thomas Park 16.10 Emerald Forest Park 4.59 University Park Site 10.20 Gabbard Park 10.70 Veterans Athletic Park 150.00 Georgia K. Fitch 11.30 W.A. Tarrow Park (includes Lincoln)21.26 Hensel Park - TAMU 29.70 Westfield 4.29 Jack and Dorothy Miller Park 10.00 Windwood 1.37 Lemon Tree Park 15.40 Wolfpen Creek Park 19.49 Lick Creek Park 515.50 Woodcreek Park 6.60 Lion's Park 1.50 Woodway Park Site 9.26 Longmire Park 4.16 Luther Jones 1.80 TOTAL ACREAGE 1,134.40 Utility Funds: Electric Customers (Connections)33,386 Average Electrical Consumption:52,466,218 KWH/Month Water Customers (Connections)23,210 Average Water Consumption:262,541 MGW/Month Number of Employees: Electric 50 Water 30 Sewer 36 Water Capacity: Number of Wells 6 Combined Capacity of Wells 19,000,000 GAL/day Number of Ground Storage Tanks, 2 Total capacity 8,000,000 GALS Number of Elevated Storage Tanks, 2 Total capacity 3,000,000 GALS Miles of Water Lines 294 Miles (Continued) 195 CITY OF COLLEGE STATION, TEXAS MISCELLANEOUS STATISTICAL AND DEMOGRAPHIC DATA SEPTEMBER 30, 2002 (Continued) Electric Capacity: Maximum Capacity 255 megawatts Annual Peak Demand 150 megawatts Number of Substations 4 Miles of Distribution Lines 400 Miles Miles of Sewer Lines 252 Miles Solid Waste Collection Fund: Number of Users (Units)23,947 Methodology Curbside pickup using automated containers Education: Attendance centers 11 Number of classrooms 550 Number of teachers 600 Number of students 7,300 Elections: Number of registered voters: Last general election (Brazos Count y)91,220 Last municipal election 45,024 Number of votes cast in: Last general election (Brazos County)29,175 Last municipal election 3,703 Percentage of registered voters voting in: Last general election (Brazos County)32% Last municipal election 8.22% Population: Estimate 2000 68,038 Census Count 1990 52,456 1980 37,296 1970 17,676 1960 11,396 1950 7,925 Source: City of College Station (Continued) 196 CITY OF COLLEGE STATION, TEXAS MISCELLANEOUS STATISTICAL AND DEMOGRAPHIC DATA SEPTEMBER 30, 2002 (Continued) ACTUAL TEXAS A&M UNIVERSITY ENROLLMENT BY FALL SEMESTERS Year University Enrollment 1993 42,524 1994 42,018 1995 41,790 1996 41,892 1997 41,461 1998 43,389 1999 43,442 2000 44,026 2001 44,618 2002 45,143 PRIMARY LABOR FORCE FOR COLLEGE STATION Year Total Labor Force Number Employed Number Unemployed Percent Unemployed 1993 26,490 25,745 745 2.8 1994 27,312 26,546 766 2.8 1995 27,430 26,561 869 3.2 1996 26,691 25,973 718 2.7 1997 28,453 27,862 591 2.1 1998 28,889 28,377 512 1.8 1999 30,793 30,246 547 1.8 2000 31,273 30,802 471 1.5 2001 30,572 30,020 552 1.8 2002 29,734 29,105 629 2.1 Source: Texas Workforce Commission (Austin, Texas)