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FY 2013-2014 -- Comprehensive Annual Financial ReportCITY OF COLLEGE STATION, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014 PREPARED BY THE CITY OF COLLEGE STATION FISCAL SERVICES DEPARTMENT JEFF KERSTEN, ASSISTANT CITY MANAGER BUDGET & FINANCIAL REPORTING DIVISION CITY OF COLLEGE STATION, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014 Table of Contents Page INTRODUCTORY SECTION Letter of Transmittal ................................................................................................................................................................ 1 City Organization ..................................................................................................................................................................... 8 Principal City Officials ............................................................................................................................................................. 9 GFOA Certificate of Achievement for Excellence in Financial Reporting ............................................................................. 10 FINANCIAL SECTION Independent Auditors’ Report ............................................................................................................................................... 11 Management’s Discussion and Analysis (Unaudited) ....................................................................................................... 14 Basic Financial Statements: Government - Wide Financial Statements: Statement of Net Position ........................................................................................................................... 30 Statement of Activities ................................................................................................................................. 31 Fund Financial Statements: Balance Sheet – Governmental Funds ....................................................................................................... 32 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ................................................................................................................. 33 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds................................................................................................... 34 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ................................................... 35 Statement of Net Position – Proprietary Funds .......................................................................................... 36 Statement of Revenues, Expenses, and Changes in Net Position – Proprietary Funds ............................................................................................................ 37 Statement of Cash Flows – Proprietary Funds ........................................................................................... 38 Notes to the Financial Statements ........................................................................................................................... 39 Required Supplementary Information: Schedule of Funding Progress – Texas Municipal Retirement System ................................................................... 67 CITY OF COLLEGE STATION, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014 Table of Contents-continued Page Schedule of Funding Progress – City of College Station Employees Other Post Employment Benefits Plan ..................................................................................................................... 68 Schedule of Revenues, Expenditures, and Changes in Fund Balance, Budget and Actual – General Fund(s) ...................................................................................................... 69 Supplementary Information: Combining and Individual Fund Statements and Schedules: Combining Balance Sheet – General Fund(s) ........................................................................................... 71 Combining Statement of Revenues, Expenditures, and Changes In Fund Balance – General Fund(s) ........................................................................................................... 72 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual: General Fund(s): General Fund .................................................................................................................... 73 Economic Development Fund ........................................................................................... 74 Efficiency Time Payment Fund ......................................................................................... 75 Chimney Hill Fund ............................................................................................................. 76 Combining Balance Sheet – Nonmajor Governmental Funds .................................................................... 79 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance – Nonmajor Governmental Funds .................................................................................... 81 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual: Special Revenue Funds: Court Technology Fee Fund ............................................................................................. 83 Court Security Fee Fund ................................................................................................... 84 Juvenile Case Manager Fee Fund .................................................................................... 85 Police Seizure Fund .......................................................................................................... 86 Memorial Cemetery Fund ................................................................................................. 87 Memorial Cemetery Endowment Fund ............................................................................. 88 CITY OF COLLEGE STATION, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014 Table of Contents-continued Page Texas Ave Cemetery Endowment Fund ........................................................................... 89 Hotel Tax Fund.................................................................................................................. 90 Community Development Fund ........................................................................................ 91 Wolf Pen Creek (WPC) TIF Fund ..................................................................................... 92 Parks Escrow Fund ........................................................................................................... 93 Drainage Projects Fund .................................................................................................... 94 Recreation Fund................................................................................................................ 95 West Medical District Tax Increment Reinvestment Zone No. 18 Fund ........................... 96 East Medical District Tax Increment Reinvestment Zone No. 19 Fund ............................ 97 Public, Educational, and Governmental Access Channel Fee Fund ................................ 98 Capital Projects Funds: General Government Projects Fund ................................................................................. 99 Parks and Recreation Projects Fund .............................................................................. 100 Debt Service Fund ....................................................................................................................... 101 Streets Projects Fund................................................................................................................... 102 Nonmajor Enterprise Funds: Combining Statement of Net Position ....................................................................................................... 104 Combining Statement of Revenues, Expenses, and Changes in Net Position ........................................ 105 Combining Statement of Cash Flows ........................................................................................................ 106 Internal Service Funds: Combining Statement of Net Position ....................................................................................................... 108 Combining Statement of Revenues, Expenses, and Changes in Net Position ........................................ 109 Combining Statement of Cash Flows ........................................................................................................ 110 CITY OF COLLEGE STATION, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014 Table of Contents-continued Page STATISTICAL SECTION: Net Position by Component ................................................................................................................................... 112 Changes in Net Position ........................................................................................................................................ 113 Program Revenues by Function/Program.............................................................................................................. 115 Fund Balances, Governmental Funds ................................................................................................................... 116 Changes in Fund Balances, Governmental Funds ................................................................................................ 117 Tax Revenue by Source, Governmental Funds ..................................................................................................... 119 Assessed Value and Estimated Actual Value of Taxable Property ....................................................................... 120 Direct and Overlapping Property Tax Rates ......................................................................................................... 121 Principal Property Taxpayers ................................................................................................................................. 122 Property Tax Levies and Collections .................................................................................................................... 123 Taxable Sales by Category .................................................................................................................................... 124 Direct and Overlapping Sales Tax Rates ............................................................................................................... 125 Sales Tax Revenue Payers by Industry ................................................................................................................ 126 Outstanding Debt by Type ..................................................................................................................................... 127 Ratios of Net General Bonded Debt Outstanding .................................................................................................. 128 Direct and Overlapping Governmental Activities Debt ........................................................................................... 129 Legal Debt Margin Information ............................................................................................................................... 130 Pledged-Revenue Coverage .................................................................................................................................. 131 Demographic and Economic Statistics .................................................................................................................. 132 Principal Area Employers ....................................................................................................................................... 133 Full-Time-Equivalent City Government Employees by Function/Program ............................................................ 134 Operating Indicators by Function/Program ............................................................................................................ 135 Capital Asset Statistics by Function/Program ........................................................................................................ 137 1 Financial Statements of the City include all government activities, organizations and functions for which the City is financially responsible as defined by the Governmental Accounting Standards Board. Based on these criteria, no other governmental organizations are included in this report. For additional information on the reporting entity, refer to Note I-A in the basic financial statements. Services Provided The City provides its citizens those services that have proven to be necessary and meaningful and which the City can provide at the least cost. Major services provided under general government and enterprise functions are: police and fire protection, emergency medical service, electric services, water and wastewater services, sanitation services, parks and recreation facilities, library services, street improvements and general administrative services. Internal services of the City, accounted for on a cost reimbursement basis, are fleet services, equipment replacement, utility customer service, risk management, employee health, workers’ compensation and unemployment coverage. Accounting System and Budgetary Control The City's accounting records for general governmental operations are maintained on a modified accrual basis, with the revenues recorded when available and measurable, and expenditures recorded when the services or goods are received and the liabilities incurred. Accounting records for the City's utilities and other proprietary activities are maintained on a full accrual basis with revenues recorded when earned and expenses recorded as goods or services are provided to the user. In developing and maintaining the City's accounting system, consideration is given to the adequacy of the internal control structure. Internal accounting controls are designed to provide reasonable, but not absolute, assurance regarding: (1) the safeguarding of assets against loss from unauthorized use or disposition, and (2) the reliability of financial records for preparing financial statements and maintaining accountability for assets. 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 evaluation of costs and benefits requires estimates and judgments by management. All internal accounting control evaluations occur within the above framework. We believe that the City's internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. The City charter provides that the City Council shall adopt the annual budget prepared by City Management as revised by the City Council. This budget is reviewed and revised by the City Council and is formally adopted by the passage of a budget ordinance. The City Manager is authorized to transfer budgeted amounts between line items and departments within all funds other than the General Fund. The City Council must authorize transfers between General Fund departments and all increases in total spending in any fund. Budgetary control over spending is at the department level within the City's General Fund and at the individual fund appropriation in all other funds. The City's departments have direct access to review budgets as often as necessary. Monthly closing reports are prepared and reviewed by management showing revenues, expenditures, and balance sheets. Summarized financial reports and budget reports are prepared on a quarterly basis. 2 3 4 5 6 7 City Manager Fire / EOC Police Community Services Human Resources Intergov’t Relations Planning & Development Engineering Public Works Water Services Electric Utility Parks and Recreation Utility Customer Services Budget & Financial Reporting Purchasing Accounting & Treasury Operations Municipal Court Fiscal Services Strategic Planning Information Technology Citizens of College Station City Secretary Municipal Judge Internal Auditor Appointed Boards and Commissions Technology Services E-GOV Business Services GIS Communications Network Services Admin City Attorney Mayor and Council Deputy City Manager Assistant City Manager Assistant City Manager Marketing & Public Communications Economic Development CITY ORGANIZATION 8 City of College Station, Texas Fiscal Year 2014 September 30, 2014 Principal City Officials Elected Officials Mayor ................................................................................................................................................................... Nancy Berry City Council Place 1 ............................................................................................................................................ Blanche Brick City Council Place 2 ............................................................................................................................................ Steve Aldrich City Council Place 3/Mayor Pro Tem................................................................................................................... Karl Mooney City Council Place 4 ............................................................................................................................................. John Nichols City Council Place 5 .............................................................................................................................................. Julie Schultz City Council Place 6 ......................................................................................................................................... James Benham City Administration City Manager ...................................................................................................................................................... Kelly Templin Deputy City Manager ........................................................................................................................................ Chuck Gilman Assistant City Manager ........................................................................................................................................ Jeff Kersten Assistant City Manager ........................................................................................................................................... Jeff Capps Director of Planning and Development Services ............................................................................................... Lance Simms Director of Public Communications .......................................................................................................................... Jay Socol Director of Water Services Department ......................................................................................................... David Coleman Director of Electric Utility ................................................................................................................................ Timothy Crabb Chief of Police ................................................................................................................................................ Scott McCollum Fire Chief ................................................................................................................................................................... Eric Hurt Director of Public Works ................................................................................................................................ Donald Harmon Director of Parks and Recreation ...................................................................................................................... David Schmitz Director of Information Technology ...................................................................................................................... Ben Roper Director of Human Resources .............................................................................................................................. Alison Pond Director of Community Services .......................................................................................................................... Debbie Eller City Attorney ................................................................................................................................................... Carla Robinson City Secretary .............................................................................................................................................. Sherry Mashburn Internal Auditor ......................................................................................................................................................... Ty Elliott 9 10 INDEPENDENT AUDITOR’S REPORT To the Honorable Mayor and Members of the City Council of The City of College Station, Texas Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business- type activities, each major fund, and the aggregate remaining fund information of the City of College Station, Texas (the “City”) as of and for the year ended September 30, 2014, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or 11 error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of September 30, 2014, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and budgetary comparison information on pages 14–29 and 67–69 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The introductory section, combining and individual nonmajor fund financial statements, and statistical section, are resented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements and the related budgetary comparison schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the 12 underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and the related budgetary comparison schedules are fairly stated in all material respects in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 13, 2015 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. In accordance with OMB Circular A-133, we have also issued our report dated March 13, 2015 on compliance for each major program and on internal control over compliance. This report and the results of testing of internal control and compliance for each major program can be found in the Compliance and Single Audit Reports for the year ended September 30, 2014. Bryan, Texas March 13, 2015 13 Ingram, Wallis & Company, P.C. Management’s Discussion and Analysis For the Fiscal Year Ended September 30, 2014 (Unaudited) This section of the City of College Station’s (the “City”) Comprehensive Annual Financial Report presents a narrative overview and analysis of the financial activities of the City for the fiscal year ended September 30, 2014. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal. FINANCIAL HIGHLIGHTS •The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the most recent Fiscal year by $445,660,563 (net position). Of this amount $138,278,178 (unrestricted net assets) may be used to meet the government’s ongoing obligations to citizens and creditors. •The City’s total net position increased by $6,985,486 during the fiscal year. •At the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $89,853,708 an increase of $23,924,272 when compared to the prior year. This increase is primarily due to the proceeds from the issuance of bonds and certificates for capital projects that have not been expended. •Approximately 20.8 percent of the combined governmental funds ending fund balance, or $18,722,265 are available for spending at the City’s discretion (unassigned fund balance). •The City’s total amount of outstanding debt is $266,985,000 which is a net increase of $25,095,000 over last year. This increase is comprised of several factors: the issuance of general obligation improvement bonds and certificates of obligation for new projects; refunding of general obligation improvement bonds, certificates of obligation, and utility revenue bonds; and retirement of general obligation improvement bonds, certificates of obligation and utility revenue bonds. Details can be found in the notes to the financial statements. OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements are comprised of three components: (1) Government-wide financial statements (2) Fund financial statements (3) Notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. City of College Station, Texas 14 Management’s Discussion and Analysis For the Fiscal Year Ended September 30, 2014 (Unaudited) The following diagram illustrates the relationship between the different components of this report: Relationship Between Comprehensive Annual Financial Report (CAFR) and Basic Financial Statements and Required Supplementary Information (RSI) General information on the government structure, services, and environment Page 1-10 Management’s Discussion and Analysis Pages 14-29 Government-Wide Financial Statements Pages 30-31 Governmental Fund Financial Statements Pages 32-35 Proprietary Fund Financial Statements Pages 36-38 Notes to the Financial Statements Pages 39-66 Additional Required Supplementary Information Pages 67-69 Information on individual funds and other supplementary information not required by GAAP Pages 70-110 Trend Data and Non-financial Data Pages 111-137 Government-Wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business. The statement of net position presents information on all of the City’s assets and liabilities, and deferred inflows/outflows of resources with the differences reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether or not the financial position of the City is improving or deteriorating. Introductory Section Basic Financial Statements And RSI Financial Section Statistical Section City of College Station, Texas 15 Management’s Discussion and Analysis For the Fiscal Year Ended September 30, 2014 (Unaudited) The statement of activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods, such as revenues pertaining to uncollected taxes and expenses pertaining to earned but unused vacation. Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, fiscal services, police, information technology, planning and development, fire, streets, drainage, traffic, park and recreation, and citizen and neighborhood resources. The business-type activities of the City include electric, water, wastewater, sanitation, and the Northgate parking garage. The government-wide financial statements can be found on pages 30-31. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into governmental funds and proprietary funds. Governmental Funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in determining what financial resources are available in the near future to finance the City‘s programs. Because the focus of governmental funds is narrower than that of government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains several individual governmental funds organized according to their type (special revenue, debt service and capital projects). Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, Debt Service Fund and Streets Projects Fund, all of which are considered to be major funds. Data from the remaining governmental funds are combined into a single, aggregated presentation. Individual fund data for each of the nonmajor governmental funds is provided in the form of combining statements elsewhere in this report. The governmental fund financial statements can be found on pages 32-35. The City adopts an annual appropriated budget for its General Fund, Debt Service Fund, Special Revenue Funds, and Capital Projects Funds. A budgetary comparison statement has been provided for the General Fund, Debt Service Fund, Special Revenue Funds and Capital Projects Funds to demonstrate compliance with their budgets. City of College Station, Texas 16 Management’s Discussion and Analysis For the Fiscal Year Ended September 30, 2014 (Unaudited) Proprietary Funds Proprietary funds are generally used to account for services for which the City charges customers—either outside customers or internal units or departments of the City. Proprietary funds provide the same type of information as shown in the government-wide financial statements, only in more detail. The City maintains the following two types of proprietary funds: Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for the operations of the electric, water, wastewater, sanitation, and parking activities of the City. The Electric, Water, and Wastewater funds are considered to be major funds of the City, while the remaining funds (Sanitation and Northgate Parking Garage) are presented in aggregate as nonmajor enterprise funds. Individual fund data for the nonmajor enterprise funds can be found in the form of combining statements elsewhere in this report. Internal service funds are used to report activities that provide supplies and services for certain City programs and activities. The City uses internal service funds to account for fleet maintenance and utility customer services. It also uses internal service funds to account for equipment replacement; employee benefits; and unemployment, workers’ compensation, and property and casualty insurance. All of these services benefit both the governmental activities and the business- type activities and have been split between governmental activities and business type activities in the government-wide financial statements. The internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report. The proprietary fund financial statements can be found on pages 36-38. Notes to the Financial Statements The notes to the financial statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 39-66. Required Supplementary Information In addition to the basic financial statements and accompanying notes, this report presents certain required supplementary information, found on pages 67-69, concerning the City’s progress in funding its obligation to provide pension benefits and other postemployment benefits to its employees and the General Fund budget to actual comparison. Combining Statements The combining statements referred to earlier in connection with the nonmajor governmental funds, the nonmajor enterprise funds, and the internal service funds are found on pages 70-110. GOVERNMENT-WIDE FINANCIAL ANYALYSIS As noted earlier, net position may serve as a useful indicator of government’s financial position. For the City, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $445,660,563 at the close of the most recent fiscal year. The largest portion of the City’s net position (65.1 percent) reflects its investment of $290,192,976 in capital assets (e.g., land, buildings, and equipment) less any related outstanding debt used to acquire those assets. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be liquidated for these liabilities. City of College Station, Texas 17 Management’s Discussion and Analysis For the Fiscal Year Ended September 30, 2014 (Unaudited) An additional portion of the City’s net position, $17,189,409 (3.9 percent) represents resources that are subject to external restriction on how they may be used. The remaining balance of unrestricted net assets, $138,278,178 (31.0 percent) may be used to meet the government’s ongoing obligations to citizens and creditors. At the end of the current fiscal year, the City was able to report positive balances in all three categories of net position, both for the government as a whole, as well as for the business-type activities. The same situation held true for the prior fiscal year. The City’s net position increased by $6,401,992 as a result of fiscal year 2014 operations, as compared to the increase of $16,506,701 for fiscal year 2013 operations. The following table provides a summary of the City’s operations for the year ended September 30, 2014 and highlights key elements of the change in the City’s net position: Net Position Governmental Activities Business-Type Activities Total 2014 2013 2014 2013 2014 2013 Assets Current and other assets 115,781,965$ 92,398,592$ 93,835,128$ 88,070,772$ 209,617,093$ 180,469,364$ Capital assets 242,769,318 242,046,195 326,611,683 319,523,837 569,381,001 561,570,032 Total assets 358,551,283 334,444,787 420,446,811 407,594,609 778,998,094 742,039,396 Total deferred outflow of resources 1,732,893 1,430,043 1,361,244 1,733,009 3,094,137 3,163,052 Liabilities Long-term liabilities outstanding 123,373,071 105,277,452 157,936,201 142,438,144 281,309,272 247,715,596 Other liabilities 19,787,860 19,666,305 35,334,536 39,145,470 55,122,396 58,811,775 Total liabilities 143,160,931 124,943,757 193,270,737 181,583,614 336,431,668 306,527,371 Net Position Invested in capital assets, net of related debt 125,012,201 153,214,549 165,180,775 189,315,182 290,192,976 342,529,731 Restricted 15,608,417 16,751,846 1,580,992 1,580,992 17,189,409 18,332,838 Unrestricted 76,502,627 40,964,678 61,775,551 36,847,830 138,278,178 77,812,508 Total net position 217,123,245$ 210,931,073$ 228,537,318$ 227,744,004$ 445,660,563$ 438,675,077$ City of College Station, Texas 18 Management’s Discussion and Analysis For the Fiscal Year Ended September 30, 2014 (Unaudited) Governmental Activities: Governmental activities increased the City of College Station’s net position by $5,608,678. Key elements of this net increase are as follows: •Sales and mixed beverage taxes increased 7.0% over the prior year reflecting continued strength in the local economy. All of the other governmental activity revenues increased 10.8 % over the prior year. •Expenditures increased 12.3% over the prior year in part as a result of additional public safety and public works capital expenditures in 2014. Changes in Net Position:Governmental Activities Business-Type Activities Total Revenues 2014 2013 2014 2013 2014 2013 Program revenues: Charges for services 12,248,313$ 11,869,339$ 135,551,100$ 134,519,144$ 147,799,413$ 146,388,483$ Operating grants and contributions 3,234,317 1,753,970 291,366 982 3,525,683 1,754,952 Capital grants and contributions 7,404,520 7,016,449 7,309,230 5,345,176 14,713,750 12,361,625 General revenues: Property taxes 27,349,234 26,451,943 - - 27,349,234 26,451,943 Sales and mixed beverage taxes 25,141,825 23,506,772 - - 25,141,825 23,506,772 Other taxes 7,535,152 6,602,958 - - 7,535,152 6,602,958 Gain on sale of Capital Assets 1,827,783 - - - 1,827,783 - Interest and investment income 195,863 252,308 120,006 174,170 315,869 426,478 Total revenues 84,937,007 77,453,739 143,271,702 140,039,472 228,208,709 217,493,211 Expenses General government 9,602,139 9,167,476 - - 9,602,139 9,167,476 Fiscal services 3,419,923 3,263,269 - - 3,419,923 3,263,269 Police 17,768,724 16,831,233 - - 17,768,724 16,831,233 Fire 14,245,690 13,748,434 - - 14,245,690 13,748,434 Planning & development svcs 5,012,992 4,334,608 - - 5,012,992 4,334,608 Public works 21,348,088 15,371,773 - - 21,348,088 15,371,773 Capital projects 731,621 733,974 - - 731,621 733,974 Parks & recreation 9,197,308 8,983,919 - - 9,197,308 8,983,919 Library 1,149,616 1,064,293 - - 1,149,616 1,064,293 Information technology 4,663,939 4,565,385 - - 4,663,939 4,565,385 Interest on long term debt 3,962,347 2,949,240 - - 3,962,347 2,949,240 Unallocated depreciation 1,161,675 1,146,119 - - 1,161,675 1,146,119 Electric utility - - 98,269,576 88,438,115 98,269,576 88,438,115 Water utility - - 11,517,915 11,662,862 11,517,915 11,662,862 Wastewater utility - - 11,205,770 11,370,918 11,205,770 11,370,918 Sanitation services - - 7,497,493 6,301,053 7,497,493 6,301,053 Parking operations - - 1,051,901 1,053,839 1,051,901 1,053,839 Total expenses 92,264,062 82,159,723 129,542,655 118,826,787 221,806,717 200,986,510 Incr (Decr) in net position before transfers (7,327,055) (4,705,984) 13,729,047 21,212,685 6,401,992 16,506,701 Transfers net 12,935,733 12,039,798 (12,935,733) (12,039,798) - - Increase in net position 5,608,678 7,333,814 793,314 9,172,887 6,401,992 16,506,701 Net position at beginning of year 210,931,073 202,547,398 227,744,004 219,302,714 438,675,077 421,850,112 Prior period adjustment 583,494 1,049,861 (731,597) 583,494 318,264 Net position at end of year 217,123,245$ 210,931,073$ 228,537,318$ 227,744,004$ 445,660,563$ 438,675,077$ City of College Station, Texas 19 Management’s Discussion and Analysis For the Fiscal Year Ended September 30, 2014 (Unaudited) The chart below illustrates the City’s governmental activities revenues by source: This chart depicts governmental activity program revenues relative to program expenses: Property Taxes 32.2% Sales and Mixed Beverage Tax 29.6% Other Taxes 8.9% Charges for Services 14.4% Capital, Grants Contrib 8.7% Misc 6.2% Governmental Activities Revenue By Source $84,937,007 - 4,000,000 8,000,000 12,000,000 16,000,000 20,000,000 24,000,000 Gen'l Gov't Fiscal Svcs Police Fire Plan & Dev Public Works Parks & Rec Inform Tech Other Governmental Activities Program Revenue and Expense Revenue Expenses City of College Station, Texas 20 Management’s Discussion and Analysis For the Fiscal Year Ended September 30, 2014 (Unaudited) Business-type Activities: Business-type activities increased the City of College Station’s net position by $793,314. Key elements of this increase are as follows: •Due in part to higher purchased power costs, utility expenses were higher than last year by $10,715,868. •Capital infrastructure contributions from various developments throughout the City contributed $7,309,230 to the net position. Revenues for the City’s business-type activities are presented in the following chart: This chart depicts business-type activity program revenues relative to program expenses: Charges for Services 94.6% Grants & Contributions 5.3% Other 0.1% Business-type Revenue $143,271,702 - 20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 Electric Water Wastewater Sanitation Parking Business-type Program Revenue and Expense Revenue Expenses City of College Station, Texas 21 Management’s Discussion and Analysis For the Fiscal Year Ended September 30, 2014 (Unaudited) FINANCIAL ANALYSIS OF THE CITY’S FUNDS As noted previously, the City uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements. Governmental Funds The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of resources that are available for spending. Such information is useful in assessing the City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. The types of major governmental funds reported by the City include the General Fund, Debt Service Fund, and Streets Projects Fund. Other governmental funds of the City are reported as nonmajor funds. At of the end of the fiscal year 2014, the City’s governmental funds reported combined ending fund balances of $89,853,708. Approximately 20.8 percent ($18,722,265) of this total amount constitutes unassigned fund balance and is available for spending at the City’s discretion. The remainder of fund balance is reserved to indicate that it is not available for new spending because it has already been committed as follows: Nonspendable $ 6,550,102 Restricted $ 58,993,882 Committed $ 4,130,069 Assigned $ 1,457,390 A detailed breakdown of the fund balance can be found in Note IV. I. Components of Fund Balances. Revenues for governmental functions totaled $75,931,411 in fiscal year ended September 30, 2014, an increase of 8.3 percent or $5,791,063 from the fiscal year ended September 30, 2013. Expenditures for governmental functions totaling $95,836,960 increased by approximately 8.4 percent or $7,392,724 from the fiscal year ended September 30, 2013. Other financing sources and uses (net) was $43,829,821. As a result, in fiscal year 2014, revenues for governmental functions exceeded expenditures by $23,924,272. Most of this increase was the result of the issuance of bonds and certificates for capital projects that were not expended during the year. The General Fund is the chief operating fund of the City of College Station. At the end of the current fiscal year, the unassigned fund balance was $18,722,265 while the total fund balance was $20,244,249. The City’s fiscal and budgetary policies require that the General Fund’s fund balance be at least equal to 15 percent of budgeted expenditures, a percentage equal to 55 days of expenditures. The total fund balance is approximately 29.6 percent of fiscal year 2014 amended budgeted expenditures and exceeds the minimum requirement set by policy. As a measure of fund’s liquidity, it is useful to compare both unassigned and total fund balance to total fund actual expenditures. Unassigned fund balance represents 28.5 percent of total general fund expenditures, while total fund balance represents 30.8 percent of total general fund expenditures. The total fund balance for the general fund continues to meet and exceed the Fiscal and Budgetary Policy of having 15 percent of expenditures available in fund balance. The General Fund’s fund balance increased by $4,318,717 during the current fiscal year due primarily to the recognition of proceeds from the sale of real property. The Debt Service Fund ended the fiscal year with a fund balance of $3,214,434. This entire amount is reserved for the payment of debt service. The net decrease in fund balance during the current fiscal year was $218,821. This decrease is due to a planned reduction in the fund balance. City of College Station, Texas 22 Management’s Discussion and Analysis For the Fiscal Year Ended September 30, 2014 (Unaudited) The Streets Projects Fund ended the fiscal year with a balance of $23,569,205. This entire amount is reserved for encumbrances related to current capital projects and for future capital projects. The net increase in fund balance during the current fiscal year was $10,031,889. This increase was attributable to bond proceeds that were issued during this fiscal year. Proprietary Funds The City’s proprietary funds provide the same type of information found in the government-wide financial statements but in more detail. At the end of the current fiscal year, the City’s proprietary funds reported combined ending net position of $228,537,318. Of this amount, 27.0 percent ($61,775,551) constitutes unrestricted net position. The remainder of net position for the proprietary funds is reported as follows: •Invested in capital assets, net related debt ($165,180,775) and •Restricted for debt service ($1,580,992). Operating revenues for proprietary activities totaled $135,426,657 for the fiscal year, an increase of 0.9 percent or $1,209,533 from the previous fiscal year. Operating expenses increased $10,304,651 or 9.2 percent for the same period. Operating income was $13,185,294 for the fiscal year. The proprietary funds reported net non-operating expenses of $6,602,314 at the end of fiscal year 2014 as compared to net non- operating expenses of $7,286,491 in the previous fiscal year. The Proprietary Funds had an overall increase of $793,314 in net position for fiscal year 2014. Electric Fund At the end of the fiscal year, the unrestricted net position for the Electric Fund totaled $13,293,957. The City’s policy with regard to its enterprise funds is to maintain at least 15 percent of annual operating expenses in working capital, a percentage equal to 55 days of expenses. At September 30, 2014, Electric Fund working capital equaled approximately 11.5 percent of annual operating expenses, as compared to 20 percent at September 30, 2013. This reduction was due to increased purchased power expenses in 2014. Electric Fund operating revenues increased by 2.3 percent ($2,216,457) during fiscal year 2014, while operating expenses increased 11.5 percent ($9,838,258) during the same period. This resulted in operating income of $2,671,877. The operating income when combined with the net non-operating expenses, net capital contributions and transfers resulted in a decrease in net position of $5,975,317 in the Electric Fund during the fiscal year. Water Fund Unrestricted net position for the Water Fund at September 30, 2014 totaled $13,177,553. Water Fund operating revenues decreased by 10.6 percent ($1,662,254) during fiscal year 2014. Operating expenses of $9,199,566 increased 2.3 percent ($202,443) over fiscal year 2013. This resulted in operating income of $4,750,605. The operating income when combined with the net non-operating expenses, net capital contributions and transfers resulted in an increase in net position of $1,601,921 in the Water Fund during the fiscal year. Wastewater Fund The Wastewater Fund’s unrestricted net position at the end of the fiscal year 2014 totaled $17,568,138. The Wastewater Fund ended the fiscal year with a working capital balance of $15,717,801 which was 188.5 percent higher than fiscal year 2013. Operating revenues in Wastewater Fund were $14,394,551 or $17,474 (0.1 percent) decrease over the previous fiscal year. Operating expenses decreased from $9,867,309 to $9,721,259 or 1.5 percent while operating income increased by 2.8 percent from $4,544,716 to 4,673,292. The operating income when City of College Station, Texas 23 Management’s Discussion and Analysis For the Fiscal Year Ended September 30, 2014 (Unaudited) combined with the net non-operating expenses, net capital contributions and transfers resulted in an increase in net position of $3,413,503 in the Wastewater Fund during the fiscal year. Budgetary Highlights The final amended budget for fiscal year 2014 totaled $271,051,823 for all funds. In the General Fund the final amended budget showed a decrease in fund balance of $5,695,703. The actual change in fund balance was an increase of $4,318,717. The following are some of the key factors in the change in fund balance: •Revenues were higher than the estimate due to increases in sales tax revenues. •Expenditures were overall lower due to reduced and deferred spending during the fiscal year. Some expenditures planned for 2014 will occur in 2015. •Sale of capital assets reflected the sale of real property that was not anticipated in the budget. Strategic planning is a driving force in the preparation of the City’s budget. The City Council has identified the following areas of strategic priority: •Good Governance •Financially Sustainable City •Providing Core Services and Infrastructure •Neighborhood Integrity •Diverse Growing Economy •Improving Mobility •Sustainable City Budget resources were included in the fiscal year 2014 to address these priorities. C APITAL ASSETS The City of College Station’s investment in capital assets for its governmental and business-type activities as of September 30, 2014 amounted to $569,381,001 (net of accumulated depreciation). This investment in capital assets includes land, utility systems, building and building improvements, improvements other than buildings, machinery and equipment, infrastructure, and construction in progress. Capital Assets at Year End Net of Accumulated Depreciation Governmental Business-Type Activities Activities Total Land 40,666,933$ 690,750$ 41,357,683$ Utility systems - 275,315,646 275,315,646 Buildings and other improvements 29,821,789 3,902,355 33,724,144 Improvements other than buildings 21,736,343 - 21,736,343 Machinery and equipment 10,485,682 3,411,796 13,897,478 Infrastructure 128,572,314 - 128,572,314 Construction in progress 11,486,257 43,291,136 54,777,393 242,769,318$ 326,611,683$ 569,381,001$ City of College Station, Texas 24 Management’s Discussion and Analysis For the Fiscal Year Ended September 30, 2014 (Unaudited) Major capital projects completed by the City during the 2014 fiscal year include the following: o Bird Pond Road Rehabilitation o Health Science Center Parkway Roadway o Texas Avenue @ University Drive Signal Reconstruction o FM 2818 School Zone Signalization o Hike and Bike Trail Phase II o Wolf Pen Creek Erosion Control Phase I o Skate Park Restrooms o Creek View Park o Carter Crossing Park Improvements o Arboretum Bridge Replacement o Synthetic Athletic Fields at Veterans Park o Northgate Electric Substation o Electric Switch Station Upgrade and Entergy Tie-In o Health Science Center Parkway Water Line o Dowling Rd Pump Station – 5 MG Ground Storage Tank Rehab o Carter Creek Wastewater Treatment Plant Improvements o Lick Creek Wastewater Treatment Plant Improvements o Bee Creek Parallel Sewer Trunk Line Phase I o Electronic Storage Upgrade Additional information on the City’s capital assets can be found in Note IV.C to the financial statements. Debt Administration At the end of the 2014 fiscal year, the City of College Station had total debt outstanding of $266,985,000. Of this amount, $252,065,000 (94.4 percent) is comprised of debt backed by the full faith and credit of the City. Certificates of Obligation that fund business-type activities in the Electric, Water, Wastewater and Northgate Parking Garage Funds are also backed by the surplus of revenue derived from each enterprise funds revenue source. The remaining debt $14,920,000 (5.6 percent), is revenue bonds secured by specified revenue sources from the City’s combined utility system . The City’s total debt increased by $25,095,000 (10.4 percent) during the current fiscal year. The change in total debt was a result of the following: •Issuance of $35,865,000 general obligation improvement bonds and refunding bonds. Governmental Activities Business-Type Activities Total General Obligation Bonds 89,050,000$ 49,900,000$ 138,950,000$ Certificates of Obligation 21,805,000 91,310,000 113,115,000 Revenue Bonds - 14,920,000 14,920,000 110,855,000$ 156,130,000$ 266,985,000$ 2014 Year-End Outstanding Debt Payable City of College Station, Texas 25 Management’s Discussion and Analysis For the Fiscal Year Ended September 30, 2014 (Unaudited) •Refunding of $25,625,000 general obligation improvement bonds, certificates of obligation, and utility revenue bonds. •Issuance of $34,005,000 in certificates of obligation, which funded business-type activities. •Retirement of $15,670,000 in general obligation improvement bonds and certificates of obligation, and the retirement of $3,480,000 in utility revenue bonds. The City’s General Obligation and Certificates of Obligation have an underlying rating of AA+ by Standard & Poor’s (“S&P”) and Aa2 by Moody’s Investors Service (“Moody’s”). The underlying ratings for the City’s revenue bonds are A+ by S&P and Aa2 by Moody’s. Additional information on the City’s long-term debt can be found in Note IV.H to the financial statements. ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES Economic conditions are more positive than they have been in several years. Sales tax revenues have been positive in the past year, and property values have increased as well. Growth has continued throughout the City. In the northern part of the City, construction continues along the University Drive Corridor with the construction of mixed use developments including Northpoint Crossing and the upcoming redevelopment of the Chimney Hill shopping center. There is other multi-family activity happening in the northern part of the City as well. There also continues to be activity in the Bio-Corridor. Growth continues in the southern part of the City with the recent opening of the Strategic Behavioral Health facility next to the College Station Medical Center. Also, a new Aerofit Health and Fitness Center opened earlier this year adjacent to the College Station Medical Center. There is also increased interest by business prospects to potentially locate in the College Station Business Center and the Spring Creek Corporate campus. Retail development continues, especially in the southern part of the City with new restaurants and other businesses opening and others under construction. The tourism and hospitality industry continues to grow with 524 additional hotel rooms currently under construction in College Station. The second year of construction of the multi-purpose synthetic fields in Veterans Park was completed and the fields were utilized for the recent 7 on 7 football tournament, which was very successful. These new facilities along with the Facilities Access Agreement in place for facilities at Texas A&M University, will attract additional events that, otherwise, likely would not have come to the area. Texas A&M University continues to see significant growth and development. The first phase of the Kyle Field redevelopment was completed for the 2014 football season and the entire project will be completed prior to the 2015 football season. As mentioned earlier, Texas A&M University enrollment is anticipated to be around 55,000 this fall. Construction on campus continues to accommodate this growth. All of this positive economic news puts strains on the city services, such as public safety, the transportation system, utilities and other core services. The following are some key fiscal and economic indicators for College Station including: •The total certified value of property in the City of College Station for FY 2015 is $6,213,584,665. This is an increase over last year of 4.5%. This increase was due in part to new property values from new construction of $215,166,820 added to the tax rolls. Existing property values increased by $115,455,739, or approximately 1.8%. •Since 2010 taxable values have increased from approximately $5.4 billion to approximately $6.2 billion currently. City of College Station, Texas 26 Management’s Discussion and Analysis For the Fiscal Year Ended September 30, 2014 (Unaudited) •Through September 2014 the local unemployment rate was 3.8%. This is below the state average of 5.0% and the national average of 5.7%. •Sales and mixed drink beverage tax revenue, the largest revenue stream in the General Fund saw a strong increase of 7.0% in fiscal year 2014. The FY 2015 budget meets the needs of the citizens and visitors of College Station as the City continues to move through a period of strong growth. This manifests itself through continued growth in higher education, through a robust visitor and tourism economy, and all of the ancillary things this growth brings. This budget is a roadmap for addressing the priority needs of the City not only for this year, but for years to come. Key points influencing budget preparation •Texas A&M University reported to have more than 55,000 students enrolled this fall. •Blinn College is continuing to experience increases in enrollment. •Expansion of Kyle Field will bring additional visitors to the community in the years to come. •The Bio-Corridor continues to grow and expand. •The health care sector of the economy is continuing to grow. •Continued residential and commercial development throughout the city, especially in south College Station. How are we proposing to address this growth? •Providing additional Police, Fire and Emergency Medical Services for citizens and visitors. •Increasing Code Enforcement resources in an effort to preserve neighborhood integrity. •Maintaining existing infrastructure including the streets and traffic management systems, electric, water and wastewater utility systems, parks and recreation facilities, and other city facilities. •Expanding infrastructure to meet the service demands that accompany growth. •Attracting and retaining a well-qualified workforce to ensure excellent service can be provided. This is a critical period for the City given the growth that is continuing. How we respond to that growth will determine what type of a City we will have for years to come. The past several years saw budget reductions and some service reductions that were necessary given the economic realities at that time. What has been done to reduce costs? This is a reasonable question that should be asked every year, and especially when an increase to the tax rate is considered. On a continual basis we look at ways to streamline and consider organizational changes. This budget scrubbing was done over the last three to four years and resulted in budget reductions along with the elimination of a number of positions. A total of $7.6 million was removed from the City’s budget from FY09-FY13, which included the elimination of 63 positions, primarily in the General Fund. This reduction in force provided resources for public safety priorities over the last several years. In fact much of that savings realized between FY09-FY13 was reinvested into public safety with 48 Police and Fire positions being added. There continue to be opportunities to reorganize and outsource. For example, last year Parks and Recreation outsourced cemetery operations which resulted in the elimination of three vacant positions and a net savings to the City. Other examples of recent cost saving efforts include outsourcing a large portion of our park mowing and right of way mowing. Also, Parks concession operations were outsourced several years ago. These are just some examples of organizational changes that result in providing services at a lower cost. City of College Station, Texas 27 Management’s Discussion and Analysis For the Fiscal Year Ended September 30, 2014 (Unaudited) Selected Increased Service Levels The following are some significant increases in service levels in the fiscal year 2015 budget. Public Safety – Police Department – To address the growth of the community the approved budget for the Police Department includes 6 new positions. These include two Traffic Officers, a Police Assistant/Training Coordinator, an Assistant Information Services Manager, a Public Safety GIS Analyst, and an Animal Control Officer. Public Safety – Fire Department – The opening of Fire Station #6 in recent years resulted in the growth of an additional 18 positions. The approved budget for the Fire Department includes four firefighter positions of a total of 15 needed for a new ladder truck. Also included is an additional position for the continued implementation of the Safety Officer program. The Safety Officer program will help to ensure the Fire Department personnel are kept as safe as possible. Transportation and Mobility - Public Works - The Public Works budget includes funds for additional street rehabilitation, an additional position to proactively fill potholes, and funds for the first year of a five year implementation of a new intelligent transportation system master plan. Core Services and Infrastructure – Parks and Recreation – Funds are included in the budget to address equipment needs for the parks system as well as court resurfacing, replacement of pavilions, and playground equipment. Neighborhood Integrity – Planning and Development Services - Funds are included in the budget for implementation of a portion of some of the neighborhood plans that have been identified in recent years. Neighborhood Integrity – Community Services – An additional position is included in the budget for a Community Services Business Manager. This position will work closely with the Director, Northgate District staff and Code Enforcement in the day to day operations of those functions. Last summer the City Council approved a budget amendment for an additional 0.5 Code Enforcement Officer, and a Staff Assistant position to handle some of the clerical and administrative duties. This will allow the Code Enforcement Officers to spend more time working on Code Enforcement issues. Tax Rate The fiscal year 2015 budget was prepared using a tax rate of 45.25 cents per $100 assessed valuation. This is an increase of 2.6542 cents from the FY 2014 tax rate of 42.5958 cents. The debt service portion of the tax rate is 19.3053 cents, which is the rate necessary to meet the tax supported debt obligations of the City. The operations and maintenance portion of the tax rate is 25.9447 cents. This provides the necessary revenue to support the General Fund budget. The 2.6542 cent increase in the tax rate will fund increased service levels in Public Safety (Police and Fire), Transportation and Mobility, streets and the traffic signal system directly related to the continued growth of the City. Utility Rates The fiscal year 2015 budget does not include a rate increase in the Electric Fund, Water Fund, Wastewater Fund, Drainage Fund or residential sanitation rates. The budget includes a 15 percent rate increase in commercial rates in the Sanitation Fund. This rate increase is needed to provide the resources needed to provide Sanitation services to commercial customers. This is the second of two planned increases in commercial sanitation rates. Capital Improvements The approved Capital Improvements Project Budget for FY15 totals $34,155,710 for all funds that include capital projects. This budget amount does not, however, reflect all projected capital expenditures for FY15. The total projected to be spent on capital projects, including both new appropriations and existing City of College Station, Texas 28 Management’s Discussion and Analysis For the Fiscal Year Ended September 30, 2014 (Unaudited) appropriations, is approximately $58 million. These capital funds come from various sources including General Obligation bonds authorized by the voters, Certificates of Obligation supported by the tax rate or utility rates, and existing cash reserves from the General Fund, and the Utility funds. Associated operating and maintenance costs needed for the projects that will be operational in FY15 have been included in the approved budget. Some of the more significant upcoming capital projects are as follows: o Cooner Street and Utility Rehabilitation o Rock Prairie Road East Rehabilitation from Stonebrook Drive to W.D. Fitch Parkway o Luther Street and Utility Rehabilitation o Munson Street Rehabilitation o Francis Street Rehabilitation o Graham Road and Utility Rehabilitation o University Drive Pedestrian Improvements o Rock Prairie Road West Widening o Lincoln Center Addition o Library Expansion o Enterprise Resources Planning (ERP) System Replacement o CAD/RMS System Replacement o Sandy Point Chemical System Replacement and Cooling Tower Expansion o 30” Water Transmission Line Reinstallation o Eastgate Water and Wastewater Rehabilitation o Bee Creek Parallel Trunk Line Phases II-IV o Royder/Live Oak Sewer Line Project o Carter Creek Wastewater Treatment Plant Centrifuge and Electrical Improvements o Underground Feed from Northgate Substation to Church Street o Second Transformer at Dowling Road Substation The City does not intend to issue debt for capital projects in 2015. The debt issued in 2014 was intended to be sufficient to cover the needs for both 2014 and 2015. Cash for the Electric, Water, and Wastewater Utilities is scheduled to be transferred for capital projects in 2015. REQUEST FOR INFORMATION This financial report is designed to provide a general overview of the City of College Station’s financial position for all who have an interest in the City’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to: City of College Station Fiscal Services Department ATTN: Assistant City Manager PO Box 9960 College Station, Texas 77840-9960 Or visit our website at http://www.cstx.gov/cafr City of College Station, Texas 29 Governmental Activities Business-type Activities Total Assets Cash and cash equivalents 93,393,857$ 22,702,463$ 116,096,320$ Investments 12,343,606 2,999,409 15,343,015 Receivable (net of allow for uncollectible)7,164,241 17,384,781 24,549,022 Inventories 6,646,270 2,192,674 8,838,944 Internal balance (3,785,422) 3,785,422 - Prepaids 19,413 - 19,413 Restricted assets - Cash and cash equivalents - 24,521,197 24,521,197 Equity in investments - 3,239,696 3,239,696 Equity in joint venture - 12,909,486 12,909,486 Loan receivable - 4,100,000 4,100,000 Capital assets (net of accum depreciation)- Land and construction in progress 52,153,190 43,981,886 96,135,076 Other capital assets (net of accum depreciation)190,616,128 282,629,797 473,245,925 Total assets 358,551,283 420,446,811 778,998,094 Deferred outflows of resources Deferred charge on refunding 1,732,893 1,361,244 3,094,137 Total deferred outflows of resources 1,732,893 1,361,244 3,094,137 Liabilities Accounts payable 3,571,987 18,554,266 22,126,253 Accrued liabilities 1,375,226 544,261 1,919,487 Retainage payable 433,909 423,525 857,434 Customer construction advances 924,100 11,121 935,221 Claims payable 1,650,636 - 1,650,636 Unearned revenues 1,016,145 141,963 1,158,108 Accrued interest payable 554,759 782,359 1,337,118 Refundable deposits 437,930 3,273,064 3,710,994 Compensated absences - current 219,195 49,501 268,696 Current portion of long-term 9,603,973 11,554,476 21,158,449 Bonds and certificate of obligation payable 107,598,381 153,976,428 261,574,809 Compensated absences - long-term 2,603,068 587,861 3,190,929 Other post employment benefits 7,246,170 1,872,154 9,118,324 Net pension obligation 5,925,452 1,499,758 7,425,210 Total liabilities 143,160,931 193,270,737 336,431,668 Net position Net investment in capital assets 125,012,201 165,180,775 290,192,976 Restricted for:- Debt service 3,293,595 1,580,992 4,874,587 Public safety 880,521 - 880,521 Community development 1,659,028 - 1,659,028 Tourism 5,157,945 - 5,157,945 Capital projects 4,270,830 - 4,270,830 Other purposes 346,498 - 346,498 Unrestricted 76,502,627 61,775,551 138,278,178 Total net position 217,123,245$ 228,537,318$ 445,660,563$ The notes to the financial statements are an integral part of this statement. CITY OF COLLEGE STATION, TEXAS Statement of Net Position September 30, 2014 30 Program Revenues Net Revenue (Expense) and Operating Capital Changes in Net Position Charges for Grants and Grants and Governmental Business-type Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Governmental activities: General government 9,602,139$ 213,242$ 3,125,427$ -$ (6,263,470)$ -$ (6,263,470)$ Fiscal services 3,419,923 1,028,531 - - (2,391,392) - (2,391,392) Police 17,768,724 3,463,589 34,785 - (14,270,350) - (14,270,350) Fire 14,245,690 1,766,195 11,312 - (12,468,183) - (12,468,183) Planning & development svcs 5,012,992 1,730,441 - - (3,282,551) - (3,282,551) Public works 21,348,088 2,437,986 - 6,140,876 (12,769,226) - (12,769,226) Capital improvement program 731,621 - - - (731,621) - (731,621) Parks & recreation 9,197,308 1,608,329 62,793 1,263,644 (6,262,542) - (6,262,542) Library 1,149,616 - - - (1,149,616) - (1,149,616) Information technology 4,663,939 - - - (4,663,939) - (4,663,939) Interest on long-term debt 3,962,347 - - - (3,962,347) - (3,962,347) Unallocated depreciation 1,161,675 - - -(1,161,675) -(1,161,675) Total governmental activities 92,264,062 12,248,313 3,234,317 7,404,520 (69,376,912) - (69,376,912) Business-type activities: Electric 98,269,576 97,814,129 - 1,058,133 - 602,686 602,686 Water 11,517,915 13,848,402 - 2,006,261 - 4,336,748 4,336,748 Wastewater 11,205,770 14,575,907 - 2,496,873 - 5,867,010 5,867,010 Sanitation 7,497,493 8,014,628 291,366 1,747,963 - 2,556,464 2,556,464 Northgate parking 1,051,901 1,298,034 - - -246,133 246,133 Total business-type activities 129,542,655 135,551,100 291,366 7,309,230 -13,609,041 13,609,041 Total primary government 221,806,717$ 147,799,413$ 3,525,683$ 14,713,750$ (69,376,912) 13,609,041 (55,767,871) General revenue: Property taxes 27,349,234 - 27,349,234 Sales and mixed beverage taxes 25,141,825 - 25,141,825 Franchise taxes 2,407,344 - 2,407,344 Hotel occupancy taxes 5,127,808 - 5,127,808 Unrestricted investment earnings 195,863 120,006 315,869 Gain on sale of capital assets 1,827,783 - 1,827,783 Transfers 12,935,733 (12,935,733) - Total general revenues and transfers 74,985,590 (12,815,727) 62,169,863 Change in net position 5,608,678 793,314 6,401,992 Net position - beginning 210,931,073 227,744,004 438,675,077 Prior period adjustment 583,494 -583,494 Net position - ending 217,123,245$ 228,537,318$ 445,660,563$ The notes to the financial statements are an integral part of this statement. CITY OF COLLEGE STATION, TEXAS Statement of Activities For the Year Ended September 30, 2014 31 General Debt Service Streets Projects Other Governmental Funds Total Governmental Funds Assets Current assets Cash and cash equivalents 19,035,073$ 2,839,310$ 21,833,881$ 30,909,425$ 74,617,689$ Equity in investments 2,514,878 375,124 2,616,453 4,356,479 9,862,934 Receivable (net of allow for uncollectible)4,129,515 506,128 345,997 2,216,328 7,197,968 Inventories 45,181 - - 6,485,508 6,530,689 Prepaid costs 19,413 - - -19,413 Total assets 25,744,060$ 3,720,562$ 24,796,331$ 43,967,740$ 98,228,693$ Liabilities Accounts payable 1,679,486$ -$682,861$ 603,892$ 2,966,239$ Accrued liabilities 1,297,072 - - 56,874 1,353,946 Unearned revenue-other 1,016,145 - - - 1,016,145 Interfund payable - - - - - Refundable deposits 79,981 - 345,997 11,952 437,930 Retainage payable 2,593 - 196,818 234,498 433,909 Customer construction advances 922,650 -1,450 -924,100 Total liabilities 4,997,927 -1,227,126 907,216 7,132,269 Deferred inflows of resources Unavailable revenue-loans receivable - - - 211,942 211,942 Unavailable revenue-property taxes 501,884 506,128 - - 1,008,012 Unavailable revenue-other - - -22,762 22,762 Total deferred inflows of resources 501,884 506,128 -234,704 1,242,716 Fund balances Nonspendable 64,594 - - 6,485,508 6,550,102 Restricted - 3,214,434 23,569,205 32,210,243 58,993,882 Committed - - - 4,130,069 4,130,069 Assigned 1,457,390 - - - 1,457,390 Unassigned 18,722,265 - - -18,722,265 Total fund balances 20,244,249 3,214,434 23,569,205 42,825,820 89,853,708 Total liabilities, deferred inflows of resources and fund balances 25,744,060$ 3,720,562$ 24,796,331$ 43,967,740$ 98,228,693$ The notes to the financial statements are an integral part of this statement. CITY OF COLLEGE STATION, TEXAS Balance Sheet Governmental Funds September 30, 2014 32 Total fund balance per balance sheet 89,853,708$ Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not financial resources, therefore are not reported in the governmental funds balance sheet 242,769,318 Debt refundings resulting in a defeasance of debt - the difference between the reacquisition price and the net carrying amount of the old debt - should be deferred and amortized 1,732,893 Long-term liabilities are not due and payable in the current period, therefore are not reported in the governmental funds balance sheet. Due within one year (10,032,643)$ Due in more than one year (122,343,133) (132,375,776) Interest payable on long-term debt does not require current financial resources and is not reported in the governmental funds balance sheet. (554,759) Allowance for loans receivable (79,161) Other long-term assets are not available to pay for current period expenditures and, therefore, are reported as unavailable revenue in the funds 1,242,716 Internal service funds are used by management to charge the costs of certain activities, such as insurance, fleet maintenance, and equipment replacement to individual funds. The assets and liabilities of the internal service funds are included in the government-wide statements of net position (net of the amount allocated to business-type activities). Assets 29,378,832 Capital Assets (7,960,977) Liabilities (3,098,127) Net amount allocated to business-type activities (3,785,422) 14,534,306 Net position of governmental activities 217,123,245$ The notes to the financial statements are an integral part of this statement. CITY OF COLLEGE STATION, TEXAS Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position September 30, 2014 33 General Debt Service Streets Projects Other Governmental Funds Total Governmental Funds Revenues Ad valorem taxes 14,402,353$ 11,938,869$ -$ -$ 26,341,222$ Sales taxes 24,565,649 - - - 24,565,649 Mixed drink and franchise 2,983,520 - - 5,127,808 8,111,328 Licenses and permits 1,424,598 - - 13,484 1,438,082 Intergovernmental 189,103 - 225,670 2,819,544 3,234,317 Charges for services 169,680 - 121,679 3,127,074 3,418,433 Other charges for services 2,818,098 - - - 2,818,098 Fines, forfeits, and penalties 3,038,926 - - 192,143 3,231,069 Investment income 66,264 14,326 39,682 75,591 195,863 Rents and royalties 542,816 - - 96,451 639,267 Contributions 11,016 - - 1,252,628 1,263,644 Other 113,802 917 29,005 530,715 674,439 Total revenues 50,325,825 11,954,112 416,036 13,235,438 75,931,411 Expenditures Current General government 5,108,448 - - - 5,108,448 Fiscal services 3,029,566 - 4,058 226,618 3,260,242 Police 17,080,568 - - 13,292 17,093,860 Fire 13,585,022 - - - 13,585,022 Planning and development services 2,867,857 - - 2,065,923 4,933,780 Public works 7,611,303 - - 1,020,846 8,632,149 Capital improvement projects 731,621 - - - 731,621 Parks & recreation 4,596,645 - - 3,115,952 7,712,597 Information technology 4,207,305 - - 7,653 4,214,958 Library 1,078,851 - - - 1,078,851 Contributions 1,184,115 - - 2,097,876 3,281,991 Other 222,034 - - 457,738 679,772 Pay plan contingency - - - - - Capital outlay - - 5,496,545 7,139,789 12,636,334 Debt service Principal retirement - 8,650,000 - - 8,650,000 Interest payments - 3,707,799 - - 3,707,799 Debt issuance costs - 39,719 - - 39,719 Intergovernmental - -489,817 -489,817 Total expenditures 61,303,335 12,397,518 5,990,420 16,145,687 95,836,960 Excess (deficit) of revenues over (under) expenditures (10,977,510) (443,406) (5,574,384) (2,910,249) (19,905,549) Other financing sources (uses) Issuance of bonds - - 13,201,800 10,158,200 23,360,000 Issuance of refunding bonds - 8,535,000 - - 8,535,000 Premium on bonds issued - 1,249,222 1,348,200 1,026,800 3,624,222 Payment to refunded bond escrow agent - (9,755,695) - - (9,755,695) Sale of capital assets 4,582,111 - - - 4,582,111 Transfers In 15,158,581 196,058 1,588,163 3,855,894 20,798,696 Transfers out (4,444,465) -(531,890) (2,338,158) (7,314,513) Total other financing sources (uses)15,296,227 224,585 15,606,273 12,702,736 43,829,821 Net change in fund balance 4,318,717 (218,821) 10,031,889 9,792,487 23,924,272 Fund balances, October 1 15,925,532 3,433,255 13,537,316 33,033,333 65,929,436 Fund balances, September 30 20,244,249$ 3,214,434$ 23,569,205$ 42,825,820$ 89,853,708$ The notes to the financial statements are an integral part of this statement. CITY OF COLLEGE STATION, TEXAS Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds For the Fiscal Year Ended September 30, 2014 34 Net change in fund balance - total governmental funds 23,924,272$ Amounts reported for governmental activities in the statement of activities differ as a result of the following: Governmental funds report capital outlays as expenditures. However, in the government-wide statement of activities the cost of those assets are allocated over their estimated useful lives as depreciation expense. This is the amount of capital assets recorded in the current period.9,345,085 Governmental funds do not recogonzie the total amount of revenue recognized in the government-wide statement of activities related to the sale of redevelopment home properties 6,163 The effect of various miscellaneous transactions involving capital assets (e.g., sales, trade ins, and capital contributions) is to increase/decrease net assets.2,458,083 Some property tax and loan revenues will not be collected for several months after the the City's fiscal year end. These are not considered "available" revenues in the governmental funds until received. 1,030,775 Amortization of interest as the result of debt refundings is reported in the government-wide statement of activities but does not require the use of current financial resources. Therefore, amortized interest expense is not reported as an expenditure in governmental funds.(254,548) Depreciation expense on capital assets is reported in the government-wide statement of activities but does not require the use of current financial resources. Therefore, depreciation expense is not reported as an expenditure in governmental funds.(12,417,695) The issuance of long-term debt (i.e., bonds, certificates of obligation) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of issuance costs, premiums, discounts, and similar items when debt is first issued, whereas the amounts are deferred and amoritized in the statement of activities. This amount is the net effect of these differences in the treatment of long-term debt and related items. Bonds issued (21,230,000)$ Certificates of Obligation issued (10,665,000) Bond principal retirement 8,650,000 Payment to refunded bond escrow agent 9,755,695 (13,489,305) Long-term estimated liabilities are recognized as expenses in the Statement of Activities as incurred, but are recognized when current financial resources are used in the government funds. Compensated absences (336,386) Net pension obligation (291,867) Other post retirement benefits (794,085) (1,422,338) Bond premiums are recognized as an other financing source in the governmental funds, but are combined with bond liabilities on the statement of net position. Premiums are amortized over the life of the bonds.(3,304,233) Internal service funds are used by management to charge the costs of certain activities, such as insurance, fleet maintenance, and equipment replacement to individual funds. The net revenue of the internal service funds is reported with governmental activities net of the amount allocated to business-type activities. Change in net position (430,744) Net amount allocated to business activities 163,163 (267,581) Change in net position of governmental activities 5,608,678$ The notes to the financial statements are an integral part of this statement. CITY OF COLLEGE STATION, TEXAS Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Fiscal Year Ended September 30, 2014 35 Electric Water Wastewater Other Enterprise Funds Total Enterprise Funds Internal Service Funds Assets Current assets Cash and cash equivalents 14,246,098$ 3,037,701$ 4,174,627$ 1,244,037$ 22,702,463$ 18,776,168$ Investments 1,882,169 401,336 551,544 164,360 2,999,409 2,480,672 Restricted assets Cash and cash equivalents 4,333,994 8,233,119 11,954,084 - 24,521,197 - Investments 572,599 1,087,745 1,579,352 - 3,239,696 - Receivable (net of allow for uncollectible) 12,985,356 1,840,375 1,633,237 925,813 17,384,781 45,434 Due from other funds - - - - - - Inventories 1,815,130 342,068 29,835 5,641 2,192,674 115,581 Total current assets 35,835,346 14,942,344 19,922,679 2,339,851 73,040,220 21,417,855 Noncurrent assets Advance to other funds - - - - - - Equity in joint venture - - - 12,909,486 12,909,486 - Loan receivable - - - 4,100,000 4,100,000 - Capital assets Utility plant 170,361,252 162,975,376 125,735,085 - 459,071,713 - Buildings - - - 5,737,679 5,737,679 823,658 Machinery and equipment - - - 6,358,895 6,358,895 21,936,337 Less accumulated depreciation (82,572,531) (51,556,752) (49,626,784) (4,782,423) (188,538,490) (14,799,018) Construction in progress 16,106,448 11,980,306 15,194,982 9,400 43,291,136 - Land - - -690,750 690,750 - Total capital assets 103,895,169 123,398,930 91,303,283 8,014,301 326,611,683 7,960,977 Total noncurrent assets 103,895,169 123,398,930 91,303,283 25,023,787 343,621,169 7,960,977 Total assets 139,730,515 138,341,274 111,225,962 27,363,638 416,661,389 29,378,832 Deferred outflows of resources Deferred charge on refunding 573,981 534,953 196,422 55,888 1,361,244 - Total deferred outflows of resources 573,981 534,953 196,422 55,888 1,361,244 - Liabilities Current liabilities Accounts payable 17,133,408 488,313 560,444 372,101 18,554,266 605,748 Accrued liabilities 323,955 47,335 63,752 109,219 544,261 58,026 Compensated absences 19,809 8,072 12,623 8,997 49,501 8,323 Retainage payable 261,553 1,087 160,885 - 423,525 - Claims payable - - - - - 1,650,636 Customer construction advances - - 11,121 - 11,121 - Unearned revenue - - - 141,963 141,963 - Payable from restricted assets Accrued interest payable 295,373 249,708 210,802 26,476 782,359 - Refundable deposits 2,914,884 339,895 14,085 4,200 3,273,064 - General obligation bonds (net)1,488,832 2,026,559 1,863,296 413,174 5,791,861 - Certificates of obligation (net)2,049,905 997,695 950,013 240,000 4,237,613 - Revenue bonds (net)450,121 717,024 357,857 -1,525,002 - Total current liabilities 24,937,840 4,875,688 4,204,878 1,316,130 35,334,536 2,322,733 Noncurrent liabilities General obligation bonds (net) 16,257,747 17,601,714 13,928,848 1,507,696 49,296,005 - Certificates of obligation (net)44,481,604 20,007,462 22,936,357 3,860,000 91,285,423 - Revenue bonds (net)1,805,257 7,762,601 3,827,142 - 13,395,000 - Compensated absences 235,249 95,858 149,913 106,841 587,861 98,844 Post employment benefits 831,345 279,814 436,275 324,720 1,872,154 373,968 Net pension obligation 663,862 224,125 351,543 260,228 1,499,758 302,582 Total noncurrent liabilites 64,275,064 45,971,574 41,630,078 6,059,485 157,936,201 775,394 Total liabilities 89,212,904 50,847,262 45,834,956 7,375,615 193,270,737 3,098,127 Net position Net investment in capital assets 37,361,702 74,285,874 47,439,769 6,093,430 165,180,775 7,960,977 Restricted for: Debt service 435,933 565,538 579,521 - 1,580,992 - Unrestricted 13,293,957 13,177,553 17,568,138 13,950,481 57,990,129 18,319,728 Total net position 51,091,592$ 88,028,965$ 65,587,428$ 20,043,911$ 224,751,896 26,280,705$ Adjustment to reflect the consolidation of internal services fund activities related to enterprise funds 3,785,422 Net position of business-type activities 228,537,318$ The notes to the financial statements are an integral part of this statement. Business-type Activities-Enterprise Funds CITY OF COLLEGE STATION, TEXAS Statement of Net Position Proprietary Funds September 30, 2014 36 Governmental Activities Electric Water Wastewater Other Enterprise Funds Total Enterprise Funds Internal Service Funds Operating revenues Charges for services 95,677,765$ 13,473,987$ 14,076,275$ 9,297,462$ 132,525,489$ 7,589,496$ Premiums - - - - - 10,413,487 Other 2,095,601 476,184 318,276 11,107 2,901,168 371,016 Total operating revenues 97,773,366 13,950,171 14,394,551 9,308,569 135,426,657 18,373,999 Operating expenses Electric operations 89,188,433 - - - 89,188,433 - Salaries and benefits - 1,974,478 2,943,325 2,479,335 7,397,138 2,419,036 Supplies - 700,781 805,128 659,794 2,165,703 1,017,049 Maintenance - 83,336 163,563 695,047 941,946 39,432 Purchased professional services - 304,318 114,049 861,269 1,279,636 174,070 Purchased property services - - - 1,726,898 1,726,898 59,660 Other purchased services - 1,597,046 1,470,026 944,868 4,011,940 728,799 Claims - - - - - 7,247,194 Administration fee - - - - - 572,760 Contributions - - - - - 2,690,290 Premiums - - - - - 1,433,593 Depreciation 5,294,817 4,317,840 4,174,328 822,537 14,609,522 1,880,362 Other 618,239 221,767 50,840 29,301 920,147 53,671 Total operating expenses 95,101,489 9,199,566 9,721,259 8,219,049 122,241,363 18,315,916 Operating income 2,671,877 4,750,605 4,673,292 1,089,520 13,185,294 58,083 Nonoperating revenues (expenses) Investment income 71,632 19,265 25,536 3,573 120,006 63,084 Gain (loss) on disposal of assets 40,763 (101,769) 62,921 (3,535) (1,620) 156,048 Earnings in joint venture - - - 291,366 291,366 - Intergovernmental - - - - - - Principal retirement - - - - - - Interest expense (2,382,452) (1,976,265) (1,447,370) (78,344) (5,884,431) - Debt issuance costs (3,927) (51,537) (2,459) (353) (58,276) - Other, net (737,822) (269,179) 118,435 (180,793) (1,069,359) (159,509) Total nonoperating revenues (expenses) (3,011,806) (2,379,485) (1,242,937) 31,914 (6,602,314) 59,623 Income before capital contributions and transfers (339,929) 2,371,120 3,430,355 1,121,434 6,582,980 117,706 Capital contributions and transfers Capital contributions 1,058,133 2,006,261 2,496,873 1,747,963 7,309,230 - Transfers in 743,273 8,116 17,652 406,983 1,176,024 - Transfers out (7,436,794) (2,783,576) (2,531,377) (1,360,010) (14,111,757) (548,450) Total capital contributions and transfers (5,635,388) (769,199) (16,852) 794,936 (5,626,503) (548,450) Change in net position (5,975,317) 1,601,921 3,413,503 1,916,370 956,477 (430,744) Beginning net position 57,066,909 86,427,044 62,173,925 18,127,541 26,711,449 Ending net position 51,091,592$ 88,028,965$ 65,587,428$ 20,043,911$ 26,280,705$ Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds (163,163) Change in net position of business-type activities 793,314$ The notes to the financial statements are an integral part of this statement. CITY OF COLLEGE STATION, TEXAS Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds For the Fiscal Year Ended September 30, 2014 Business-type Activities - Enterprise Funds 37 Governmental Activities Other Total Internal Enterprise Enterprise Service Electric Water Wastewater Funds Funds Funds Cash flows from operating activities: Cash received from customers 98,399,684$ 15,347,594$ 14,437,031$ 9,248,359$ 137,432,668$ 18,357,429$ Cash payments to suppliers for goods and services (87,234,423) (3,317,267) (3,280,846) (4,891,597) (98,724,133) (13,887,984) Cash payments to employees for services (5,620,598) (1,906,103) (2,848,581) (2,398,547) (12,773,829) (2,358,342) Customer deposits received (122,627) (24,385) 5,116 - (141,896) - Cash paid for miscellaneous services (737,822) (269,179) - (188,774) (1,195,775) (159,509) Cash received for miscellaneous revenues - - 118,435 7,628 126,063 - Cash received from other funds 80,000 80,000 80,000 -240,000 - Net cash provided (used) by operating activities 4,764,214 9,910,660 8,511,155 1,777,069 24,963,098 1,951,594 Cash flows from noncapital financing activities: Transfers in from other funds 743,273 8,116 17,652 406,983 1,176,024 - Transfers out to other funds (7,436,794) (2,783,576) (2,531,377) (1,360,010) (14,111,757) (548,450) Net cash provided (used) by noncapital financing activities (6,693,521) (2,775,460) (2,513,725) (953,027) (12,935,733) (548,450) Cash flows from capital and related financing activities: Acquisition and construction of capital assets (10,415,532) (4,013,433) (6,009,087) (1,747,334) (22,185,386) (1,706,053) Capital grants and contributions 1,058,133 2,006,261 2,496,873 1,747,963 7,309,230 - Proceeds from sale of assets 50,406 67,416 62,921 - 180,743 156,048 Proceeds from certificates of obligation and general obligation bonds 8,713,237 6,458,331 11,358,870 - 26,530,438 - Principal paid on certificates of obligation and general obligation bonds (3,573,190) (3,229,892) (3,071,919) (386,996) (10,261,997) - Interest paid on certificates of obligation and general obligation bonds (2,414,216) (2,048,066) (1,461,108) (76,787) (6,000,177) - Net cash provided (used) by capital and related financing activities (6,581,162) (759,383) 3,376,550 (463,154) (4,427,149) (1,550,005) Cash flows from investing activities: Purchase of investments (6,163,615) (3,453,011) (4,935,148) (389,609) (14,941,383) (6,019,000) Proceeds from sale and maturities of investment securities 7,148,427 2,706,704 3,838,225 347,075 14,040,431 6,028,777 Investment income 71,632 19,265 25,536 3,573 120,006 63,084 Net cash provided (used) by investing activities 1,056,444 (727,042) (1,071,387) (38,961) (780,946) 72,861 Net increase (decrease) in cash and cash equivalents (7,454,025) 5,648,775 8,302,593 321,927 6,819,270 (74,000) Cash and cash equivalents, Oct. 1 26,034,117 5,622,045 7,826,118 922,110 40,404,390 18,850,168 Cash and cash equivalents, Sept. 30 18,580,092$ 11,270,820$ 16,128,711$ 1,244,037$ 47,223,660$ 18,776,168$ Reconciliation of operating income to net cash Provided by operating activities: Operating income 2,671,877$ 4,750,605$ 4,673,292$ 1,089,520$ 13,185,294$ 58,083$ Adjustment to reconcile operating income to net cash provided (used) by operating activities: Depreciation, bad debt expense, inventory loss 5,294,817 4,317,840 4,174,328 822,537 14,609,522 1,880,362 Miscellaneous nonoperating revenues - - 118,435 7,628 126,063 - Miscellaneous nonoperating expenses (737,822) (269,179) - (188,774) (1,195,775) (159,509) Changes in assets and liabilities: Change in accounts receivable 626,318 1,397,423 42,480 (116,665) 1,949,556 (16,570) Change in inventory (385,651) 37,981 2,784 9,399 (335,487) (18,971) Change in accounts payable (2,827,575) (448,000) (680,008) 14,460 (3,941,123) 138,912 Change in due from other funds 80,000 80,000 80,000 - 240,000 - Change in refundable deposits (122,627) (24,385) 5,116 - (141,896) - Change in claims payable - - - - - 9,089 Change in accrued liabilities 11,449 6,980 3,427 5,643 27,499 7,410 Change in deferred revenue - - - 56,455 56,455 - Change in accrued vacation (5,086) 9,993 15,071 15,007 34,985 (9,326) Change in OPEB 115,901 37,584 55,737 45,230 254,452 45,418 Change in net pension obligation 42,613 13,818 20,493 16,629 93,553 16,696 Total adjustments 2,092,337 5,160,055 3,837,863 687,549 11,777,804 1,893,511 Net cash provided (used) by operating activities 4,764,214$ 9,910,660$ 8,511,155$ 1,777,069$ 24,963,098$ 1,951,594$ Noncash investing, capital, and financing activities Impact of debt refunding (see note: IV.H) Change in utility revenue bonds (6,561,252)$ (5,767,908)$ (4,035,840)$ -$ (16,365,000)$ -$ The notes to the financial statements are an integral part of this statement. Business-type Activities - Enterprise Funds CITY OF COLLEGE STATION, TEXAS Statement of Cash Flows Proprietary Funds For the Fiscal Year Ended September 30, 2014 38 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2014 I. Summary of Significant Accounting Policies A. Financial Reporting Entity The City of College Station, Texas (“City”), the financial reporting entity presented in these financial statements, was incorporated in 1938 as a municipal corporation incorporated under the provisions of H.B. 901 of the Texas Legislature. The City operates under a Council-Manager form of government and provides such services as authorized by its charter to advance the welfare, health, comfort, safety and convenience of the City and its inhabitants. The accounting and reporting policies of the City relating to the funds included in the accompanying basic financial statements conform to accounting principles generally accepted in the United States of America (GAAP) applicable to state and local governments. Generally accepted accounting principles for local governments include those principles prescribed by the Governmental Accounting Standards Board (GASB), the American Institute of Certified Public Accountants in the publication entitled State and Local Governments-Audit and Accounting Guide and by the Financial Accounting Standards Board (when applicable). The City’s basic financial statements include the accounts of all City operations. The criteria for including organizations as component units within the City’s reporting entity, as set forth in Section 2100 of GASB’s Codification of Governmental Accounting and Financial Reporting Standards, include whether: •The organization is legally separate (can sue and be sued in their own name) •The City holds the corporate powers of the organization •The City appoints a voting majority of the organization’s board •The City is able to impose its will on the organization •The organization has the potential to impose a financial benefit/burden on the City •There is a fiscal dependency by the organization on the City. Based on the aforementioned criteria, the City has no component units. B. Government-Wide and Fund Financial Statements The government-wide financial statements (e.g., the statement of net position and the statement of activities) report information on all of the activities of the City. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses for a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include (1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among programs revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. C. Measurement Focus, Basis of Accounting and Financial Statement Presentation Measurement focus refers to the type of information a given fund presents; basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurement made, regardless of the measurement focuses applied. The government-wide financial statements and fund financial statements for proprietary funds are reported using the economic resources measurement focus and the accrual basis of accounting. The economic resources measurement focus means all assets and liabilities (whether current or noncurrent) are included on the statement City of College Station, Texas 39 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2014 of net position and the operating statements present increases (revenues) and decreases (expenses) in total net position. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized as soon as they are both measurable and available. “Measurable” means the amount of the transaction can be determined and “available” means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The City considers revenues to be available if they are collected within 30 days of the end of the current fiscal period. Expenditures are generally recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to vacation, claims, and judgments are recorded only when payment is due. Property taxes, other local taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and, therefore, have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measureable and available only when the City receives cash. The City reports the following major governmental funds: The General Fund is the City’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. All general tax revenues and other receipts that are not restricted by law or contractual agreement to some other fund are accounted for in this fund. General operating expenditures, fixed charges and capital improvement costs that are not paid through other funds are paid from the General Fund. The Debt Service Fund accounts for the financial resources that are restricted, committed, or assigned to expenditure for the payment of principal and interest on long-term debt paid primarily from taxes levied by the City. Financial resources that are being accumulated from principal and interest in future years are also reported in the Debt Service Fund. The Streets Projects Fund accounts for the costs of new street construction, street improvements, and traffic signalization made with funds provided primarily by proceeds from the sale of general obligation bonds and by investing those proceeds. The City reports the following major proprietary funds: The Electric Fund accounts for the activities necessary to provide electric services to the residents of the City. These activities include administration, distribution system operations and maintenance, transmission system operations and maintenance, new construction, and financing and related debt services. Billing and collection services are accounted for as an internal service fund. The Water Fund accounts for the activities necessary to provide water services to the residents of the City. These activities include administrative services, water production and distribution system operation and maintenance, new construction, and financing and related debt services. Billing and collection services are accounted for as an internal service fund. The Wastewater Fund accounts for the activities necessary to provide wastewater services to the residents of the City. These activities include administrative services, wastewater system operation and maintenance, new construction, and financing and related debt services. Billing and collection services are accounted for as an internal service fund. City of College Station, Texas 40 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2014 Additionally, the City reports the following fund types: Internal Service Funds account for activities related to administration of health insurance provided to City employees; the City’s risk management activities, including general liability, unemployment and workers’ compensation claims and associated administrative expenses on a cost reimbursement basis; utility billing and collection activities related to the City’s electric, water, and wastewater utilities and residential and commercial garbage collections; activities related to the management of the City’s vehicles and heavy equipment, including preventative maintenance and vehicle repair; and activities related to the purchase and replacement of vehicles and large motorized equipment, telephone and radio systems, and technological infrastructure equipment not budgeted in other funds. In general, the effect of internal fund activity has been eliminated from the government-wide financial statements. Exceptions to this rule are payments-in-lieu of taxes, indirect costs and franchise fees, and other charges between the City’s Electric, Water, and Wastewater Funds because elimination of these charges would distort the direct costs and program revenues reported in the Statement of Activities. Amounts reported as program revenues include (1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Proprietary funds distinguish operation revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services in connection with the fund’s principal ongoing operations. The principal operation revenues of the City’s enterprise funds are charges for customer services including electric, water, wastewater, and sanitation fees; while internal service funds revenues are for equipment purchase amounts and risk management charges. Operating expenses for enterprise fund and internal services funds include the cost of services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first, and then unrestricted resources as they are needed. D. Assets, Liabilities and Net Position or Equity 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, investments pools, money market mutual funds, certificates of deposit and agency securities 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 in interest bearing accounts or is invested. The City uses a pooling method to account for cash and cash equivalents. Equity in cash and cash equivalents and interest income from pooled cash are 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. Investments Investments are made in accordance with the City’s Investment Policy which was adopted by the City Council in October 2013 for the fiscal year ending September 30, 2014. This policy is applicable to all city funds and permits investment in obligations of U.S. Government or its agencies, repurchase agreements, commercial paper, certificates of deposit, public funds investment pools, and money market mutual funds. This policy states that City of College Station, Texas 41 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2014 the Assistant City Manager 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 with a maturity of more 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 of investment in construction funds should at least 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 differences in relative yield between different types of securities and varying maturities. “Swaps” analysis is the responsibility of the City’s Investment Officer and the decision to execute the “swap” rests with this designated Officer. 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. 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 Dealers”). All securities are purchased delivery versus payment and held in the City’s name in a safekeeping account at The Bank of New York. Investments of all funds may consist of Agency securities, money market mutual funds, certificates of deposit and investments in public funds investment pool. 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. In 2011, the City adopted GASB No.59, Financial Instruments Omnibus. See Note IV-A regarding 2a7- like 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. Inventories, Assets Held for Resale and Prepaid Costs Inventories are accounted for using the consumption method and are valued at year-end based on cost, with costs determined using an average cost method. Assets held for resale include redevelopment properties, properties purchased and constructed with the express intent of resale. These assets are reported at cost in the governmental funds. Cemetery plots are another example of assets held for resale in the governmental funds. City ordinance stipulates the percentage of cemetery plot sales to be allocated to the operational fund. These assets held for resale in the non-major governmental Community Development and Cemetery funds are reported as inventory in the financial statements and accounted for using the purchases method. City of College Station, Texas 42 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2014 Payments made to vendors for services that will benefit periods beyond September 30, 2014, are recorded as prepaid costs with a reserve for prepaid items recognized in the governmental funds in the fund level financial statements to indicate that a portion of fund balance is not available for other subsequent expenditures. Interfund Transaction and Receivables/Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds”. Any residual balances outstanding between governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” Transactions between Funds The City allocates an indirect cost percentage of administrative services paid through the General Fund along with other indirect costs deemed necessary for the operation of the proprietary funds, internal service funds and the other governmental funds. Restricted Assets In the Enterprise Funds, proceeds of utility revenue bonds and certificates of obligations, 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. 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 V-C. Capital Assets Capital assets include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items) and are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of three years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. Assets owned by the electric utility are capitalized in accordance with Federal Energy Regulatory Commission (FERC) guidelines. Furthermore, assets owned by either the Water or Wastewater utilities are capitalized in accordance with the National Association of Regulatory Utility Commissioners (NARUC) guidelines. The costs of normal maintenance and repairs that do not add to the value of the assets or materially extend the asset’s useful life are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. In accordance with Financial Accounting Standards Board ASC 980 Regulated Operations, interest is not capitalized during construction of capital assets of business-type activities because interest is recovered currently in the City’s established rate structure. City of College Station, Texas 43 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2014 Depreciation of all assets is recorded and calculated using the straight-line method over the following estimated useful lives: Electric system 1-50 Years Water system 2-50 Years Wastewater system 2-50 Years Infrastructure 10-50 Years Buildings and building improvements 5-50 Years Land improvements 10-45 Years Machinery and equipment 5-20 Years Motor vehicles 3-12 Years Furniture, fixtures and office equipment 5-20 Years Compensated Absences Employees are credited with vacation at rates of 10 to 20 days per year, depending upon 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 vacation is accrued when earned in the government-wide and proprietary fund financial statements. No liability has been recorded in the governmental fund financial statements. 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. Because the City does not pay employees for unused accumulated sick leave, no related liability has been recorded in the financial statements. Changes in compensated absences for the year ending September 30, 2014 were as follows: Amount Due Amount Due Beginning Total Ending Within One Greater than Activity Type: Balance Earned Paid Balance Year One Year Governmental $2,647,128 $380,737 $(205,602) $2,822,263 $219,195 $2,603,068 Business-type 602,377 81,772 ( 46,787) 637,362 49,501 587,861 Total Comp. Absences $3,249,505 $462,509 $(252,389) $3,459,625 $268,696 $3,190,929 Internal service funds predominantly serve the governmental funds. All internal service funds are included as part of the above totals for governmental activities. All of the Utility Customer Service Fund and a portion of the remaining internal service funds are included in the Business-type Activities on the Statement of Net Position. For the governmental activities, accrued vacation is generally liquidated by the general fund. Long-Term Obligations In the government-wide financial statements and in the fund financial statements for the proprietary fund types, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discount and deferred amounts on refunding. Bond issuance costs, with the exception of bond insurance are expensed in the period incurred. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. City of College Station, Texas 44 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2014 Fund Equity In the fund financial statements, governmental funds report fund balance classifications that comprise a hierarchy based primarily on the specific purposes for which amounts in those funds can be spent. In the fiscal year ended September 30, 2009, the City adopted the Governmental Accounting Standards Board Statement (GASBS) number 54, “Fund Balance Reporting and Governmental Fund Type Definitions.” GASBS 54 provides for and the City uses the following classifications: Nonspendable Fund Balance includes amounts that cannot be spent because they are not in spendable form. The “not in spendable form” criterion includes items that are not expected to be converted to cash, for example, inventories and prepaid amounts. It also includes the long-term amount of loans receivable as well as property acquired for resale. Restricted Fund Balance is reported when constraints placed on the use of resources are either (a) externally imposed by creditors, grantors, contributors, or laws or regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation. Committed Fund Balance includes amounts that can only be used for specific purposes pursuant to limitations imposed by the government’s highest level of decision-making authority. The City Council is the highest level of decision making-authority for the government that can, by approval of a resolution prior to the end of the fiscal year, commit fund balance. Once adopted, the limitation imposed by the resolution remains in place until a similar action is taken (the approval of another resolution) to remove or revise the limitation. Assigned Fund Balance includes amounts that are constrained by the government’s intent to be used for specific purposes, but are neither restricted nor committed. The governing body, the City Council, has authorized the Assistant City Manager, through the budget ordinance, to assign fund balance. Assignments, unlike commitments are not permanent and a formal action is not required for the removal of an assignment. Finally, assignments may not result in a deficit in Unassigned Fund Balance. Unassigned Fund Balance is the residual classification for the General Fund. This classification represents fund balance that has not been assigned to other funds nor been restricted, committed, or assigned to specific purposes within the General Fund. In other governmental funds, if expenditures incurred for specific purposes exceeded the amounts restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance. When fund balances are available for use and the usage requirements met, the City reduces the committed amounts first, followed by the assigned amounts and then the unassigned amount lastly. When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, and then unrestricted resources as they are needed. E. Budgetary Control The City follows these procedures in establishing budgetary data: 1.Prior to September 1, City Manager submits to City Council a proposed operating budget for the upcoming fiscal year beginning October 1. The operating budget includes proposed expenditures and the means for financing them. 2.All budget requests are compiled by the Office of Budget & Financial Reporting and then 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 expenditures 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 City of College Station, Texas 45 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2014 the amount does not exceed $15,000. All other transfers must be approved by City Council. Departments 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 without Council approval. Budgeted amounts as originally adopted were not significantly changed by such transfers during the year. 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. F. Budget Basis of Accounting The City prepares its annual budget on a basis (budget basis) which differs from a GAAP basis. The budget and all transactions are presented in accordance with the City’s method (budget basis) in the Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual - General Fund to provide a meaningful comparison of actual results with the budget. The differences between budget and GAAP basis in the General Fund are that reimbursements and transfers of indirect costs are shown as Reimbursed Administration and interfund loan transactions are treated as transfers for budget basis. Consistent with the purchases method, assets held for resale are treated as expenditures for budget purposes. II. Minimum Fund Balance/Operating Reserve Policies The unobligated (unassigned) fund balance in the General Fund should be at least 15% of the annual budgeted General Fund expenditures. This percentage is the equivalent of 55 days expenditure. An additional amount up to 3.0% should be maintained for extraordinary items or contingencies. Cash and investments alone should be equivalent to 30 days operating expenditures. The working capital (current assets less current liabilities) in the enterprise funds should be maintained at 15% of total operating expenses or the equivalent of 55 days. Cash and Investments alone should be equivalent to 30 days of operations. III.Stewardship, Compliance, and Accountability A. Budgetary Information The Council approved five budget amendments during fiscal year 2014. These five budget amendments included the following appropriations: First Street Property Sale Proceeds $2,375,822 Assessment of Transportation Needs $ 80,000 Veterans Park Turf & Irrigation Improvements 157,250 HazMat Truck for Fire Dept. 170,000 Aggies Go to War Exhibit 225,000 Repairs for Northgate Parking Garage 28,456 Encumbrance Roll 3,943,810 EMBRACE Project 180,974 Sponsorship of COCS 75th Anniversary 43,079 Code Enforcement Personnel Needs 43,515 Consulting for Municipal Management Districts 50,000 Purchased Power & Wheeling Charges 7,500,000 FD Personnel & Equipment Needs 51,115 Oversize Participation Funds 52,727 Personnel Needs in City Manager’s Office 53,500 PD Equipment 39,747 Personnel Needs in the Public Communications Dept. 42,933 CVB Relocation Cost 46,313 Sanitation Overtime Costs 30,000 Fleet Overtime Costs 15,000 Council Chamber Upgrade 22,994 Grants 46,327 $15,198,562 1.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 lapse at the end of the budget year if they have not been expended or lawfully encumbered. 2.Formal budgetary integration is legally enacted and employed as a management control device during the year for all funds. City of College Station, Texas 46 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2014 3. Encumbrance accounting is employed in governmental funds. Encumbrances (e.g., purchase orders, contracts) outstanding at year end are reported as assignments of fund balances and do not constitute expenditures or liabilities. B. Excess of Expenditures over Appropriations The amounts of any excesses of expenditures over appropriations during fiscal year 2014 and the funds in which they occurred are as follows: Fund Amount Court Security Fee Fund $ 2,324 Hotel Tax Fund 2,896,963 IV. Detailed Notes on All Funds A. Cash and Investments Cash and investments are accounted for within the pooled cash fund of the City. The City records investments at fair value in accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools. Cash and cash equivalents, investment balances and interest income are allocated to the City’s participating funds on a monthly basis. The amount of the allocation is based on each fund's proportional equity to total pooled equity. Weighted Average Fair Value Maturity (days) Bank Demand Accounts $ 84,266,959 1 Money Market Accounts 30,571,604 1 Certificates of Deposits 14,065,265 271 Texas Local Government Investment Pool 30,296,400 1 $159,200,228 Portfolio Weighted Average Maturity 25 Interest rate risk: In accordance with the City's Investment Policy, interest rate risk is managed by limiting the weighted average maturity of the investment portfolio to two years (approximately 720 days) or less and by limiting the maximum maturity of any security purchased to five years or less. Credit risk: Investments authorized by the City’s policy are those approved by the revised State of Texas Public Funds Investment Act of 1997 and 2011 and the Texas Public Collateral Act of 1989. These investments include the following: 1. Direct obligations of the United States government: U.S. Treasury Bills, U.S. Treasury Notes, and U.S. Treasury Bonds as well as Bonds or other interest bearing obligations for which the principal and interest are guaranteed by the full faith and credit of the United States government and rated not less than A or its equivalent by at least one nationally recognized investment rating firm. 2. Federal Agencies and Instrumentalities including but not limited to, discount notes, callables and debentures of the Federal National Mortgage Association (FNMA), the Federal Home Loan Bank (FHLB), the Federal Farm Credit Bank (FFCB), and the Federal Home Loan Mortgage Corporation (FHLMC). 3. Time Certificates of Deposit, insured by the Federal Deposit Insurance Corporation (FDIC) or its successor, or the National Credit Union Share Insurance Fund or its successor, in state or national banks. Any deposits exceeding FDIC insurance limits shall be collateralized at 102% of the face amount of the Certificate of City of College Station, Texas 47 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2014 Deposit by securities listed in 1 - 2 above and held by the City's custodial bank or the custodial bank of the institution the CD’s are held. Bids for Certificates of Deposit may be solicited orally, in writing, electronically or using any combination of these methods. 4. Repurchase Agreements with a defined termination date of 90 days or less collateralized by a combination of cash and securities listed in 1 - 2 above. Collateral must have a minimum market value of 102% of the repurchase agreement, and must be held by the custodian bank or other independent third-party custodian contracted by the City. Bond proceeds may be invested in flexible repurchase agreements with maturity dates not exceeding the expected final project expenditure if a formal bidding process is followed and properly documented for IRS purposes. 5. Commercial Paper maturing within 180 days carrying a minimum rating not less than A-1 or P-1 or equivalent by two nationally recognized rating agencies, or; rated not less than A-1 or P-1 equivalent by one nationally recognized rating agency plus secured by an irrevocable letter of credit issued by a domestic bank. 6. AAA rated Money Market Mutual Funds registered with the Securities and Exchange Commission that invest exclusively in investments described in this section. 7. AAA-rated Investment Pools organized under the Texas Interlocal Cooperation Act that follow the requirements in the Public Funds Investment Act and which have been specifically approved by the City. The City is a voluntary participant in two external investment pools, Texpool and TexSTAR. The pools are 2a7-like pools, which are not registered with the Securities and Exchange Commission (SEC) as an investment company, but have a policy that it will, and does, operate in a manner consistent with the SEC’s Rule 2a7 of the Investment Company Act of 1940. This type of pool uses amortized investment costs rather than market values to compute participant share values. Furthermore, the pools in which the City participates seek to maintain a stable $1 net asset value per share of unit. Accordingly, the fair value of the City’s position in these pools is substantially the same as the market value of the shares in each of the pools. As of September 30, 2014, the City’s investments in Texpool and TexSTAR were rated by Standard & Poor's as AAAm. Credit concentration: With the exception of U.S. Treasury securities and authorized pools, the City's Investment Policy limits the investment in a single security type or with a single financial institution to 30%. It also limits the overall investment in Federal Agency securities to 70% and Certificates of Deposit to 30%. As of September 30, 2014, the issuers whose securities represented more than 5% of the City's investment portfolio were as follows: American Momentum Bank (9%) and Branch Banking and Trust Company (19%). Custodian credit risk – deposits: In the case of deposits, this is the risk that in the event of a bank failure, the government's deposits may not be returned to it. The City of College Station's City Council has approved a depository services contract which governs its depository relationship. This contract requires that deposits not covered by depository insurance be collateralized at 105%. The City’s depository bank collateralizes the city’s funds at 110%. Custodian credit risk – investments: For an investment, this is the risk that, in the event of the failure of the counterparty, the government will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The City's investment portfolio requires that all security transactions be conducted on a Delivery-vs.-Payment basis and that all securities be held by a third party custodian and evidenced by safekeeping receipts. City of College Station, Texas 48 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2014 B. Receivables Receivables as of year-end for the City's individual major funds and non major and internal service funds in the aggregate, including the applicable allowances for uncollectible accounts, are as follows: Debt Street Internal Governmental activities: General Service Projects Nonmajor Service Fund Total Taxes: Property $ 501,883 $506,128 $ - $ - $ - $1,008,011 Beverage 137,505 - - - - 137,505 Sales 2,159,957 - - - - 2,159,957 Subtotal taxes 2,799,345 506,128 - - - 3,305,473 Grants - - - 720,804 - 720,804 Charges for services 1,364,867 - 345,997 287,031 65,900 2,063,795 Loans - - - 1,237,531 - 1,237,531 Miscellaneous 69 - - - - 69 Total gross governmental 4,164,281 506,128 345,997 2,245,366 65,900 7,327,672 Less allowance for uncollectible accounts ( 34,766) - - ( 29,038) (20,466) ( 84,270) Net total receivables $4,129,515 $506,128 $345,997 $2,216,328 $ 45,434 $7,243,402 Internal Electric Water Wastewater Nonmajor Service Fund Total Business-type activities: Charges for services $14,544,255 $1,931,462 $1,818,124 $1,026,836 $ - $19,320,677 Less allowance for uncollectible accounts (1,558,899) ( 91,087) ( 184,887) ( 101,023) - ( 1,935,896) Net total receivables $12,985,356 $1,840,375 $1,633,237 $ 925,813 $ - $17,384,781 Loans Receivable in the non-major governmental funds are made up of the following: a $500,000, 40-year loan of HOME Investment Partnership (HOME) funds for Santour Court, an affordable, single-family residential development; $519,425 in HOME down-payment assistance loans for eligible HOME participants whose loans are made with Federal funds from the Department of Housing and Urban Development (HUD); two Community Development Housing Reconstruction Program Lien Notes held by the City which total to $218,106. Loans Receivable in the non-major business-type funds represent BVSWMA, Inc.’s obligation to reimburse 2009 College Station Certificate of Obligation debt issued and used to construct the Twin Oaks Landfill. The annual principal and interest receivable amounts are as follows: Due from Related Party Year Ended September 30, Principal Interest 2015 $ 240,000 $ 163,910 2016-2020 1,150,000 705,089 2021-2025 1,365,000 462,767 2026-2030 1,345,000 125,573 $4,100,000 $1,457,339 Governmental funds report unearned revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. As of fiscal year end, the unearned revenue reported in the governmental funds related to emergency services was $1,016,145. City of College Station, Texas 49 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2014 C. Capital Assets Capital asset activity for the year ended September 30, 2014 was as follows: Beginning Ending Governmental Activities Balance Increases Decreases Adjustments Balance Capital Assets, not being depreciated Land $ 43,050,894 $ - $( 2,383,961) $ - $ 40,666,933 Construction in progress 10,151,816 9,782,344 ( 8,448,883) 980 11,486,257 Total capital assets not being depreciated 53,202,710 9,782,344 (10,832,844) 980 52,153,190 Capital assets, being depreciated Buildings and other improvements 43,173,443 25,827 ( 1,554,709) - 41,644,561 Improvements other than buildings 37,299,014 3,600,920 ( 199,967) - 40,699,967 Machinery and equipment 37,379,134 2,477,275 ( 3,621,830) - 36,234,579 Infrastructure 254,704,512 10,853,925 ( 44,300) - 265,514,137 Total capital assets, being depreciated 372,556,103 16,957,947 ( 5,420,806) - 384,093,244 Less accumulated depreciation for: Buildings and building improvements 12,348,882 706,750 ( 1,232,860) - 11,822,772 Improvements other than buildings 17,429,420 1,695,927 ( 161,723) - 18,963,624 Machinery and equipment 25,501,908 3,825,493 ( 3,578,504) - 25,748,897 Infrastructure 128,913,470 8,069,887 ( 41,534) - 136,941,823 Total accumulated depreciation 184,193,680 14,298,057 ( 5,014,621) - 193,477,116 Total capital assets being depreciated, net 188,362,423 2,659,890 ( 406,185) - 190,616,128 Governmental type activities capital assets, net $241,565,133 $12,442,234 $(11,239,029) $ 980 $242,769,318 Beginning Ending Business-Type Activities Balance Increases Decreases Adjustments Balance Capital Assets, not being depreciated Land $ 690,750 $ - $ - $ - $ 690,750 Construction in progress 36,991,755 15,148,982 (8,849,601) - 43,291,136 Total capital assets not being depreciated 37,682,505 15,148,982 (8,849,601) - 43,981,886 Capital assets, being depreciated Electric system 162,535,495 8,248,908 ( 423,151) - 170,361,252 Water system 160,106,661 3,309,933 ( 441,218) - 162,975,376 Wastewater system 123,876,162 2,120,277 ( 261,354) - 125,735,085 Buildings and other improvements 5,743,755 - ( 6,076) - 5,737,679 Machinery and equipment 5,590,795 1,747,963 ( 979,863) - 6,358,895 Total capital assets, being depreciated 457,852,868 15,427,081 (2,111,662) - 471,168,287 Less accumulated depreciation for: Electric system 77,798,998 5,294,817 (423,151) (98,133) 82,572,531 Water system 47,560,123 4,317,840 (321,211) - 51,556,752 Wastewater system 45,710,754 4,174,328 (258,298) - 49,626,784 Buildings and other improvements 1,693,729 143,507 (1,912) - 1,835,324 Machinery and equipment 3,247,932 679,030 ( 979,863) - 2,947,099 Total accumulated depreciation 176,011,536 14,609,522 (1,984,435) (98,133) 188,538,490 Total capital assets being depreciated, net 281,841,332 817,559 ( 127,227) 98,133 282,629,797 Business type activities capital assets, net $319,523,837 $15,966,541 $(8,976,828) $ 98,133 $326,611,683 City of College Station, Texas 50 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2014 Depreciation expense for fiscal year 2014 was charged as follows: General Government $ 801,804 Fiscal Services 642,654 Police 3,589,763 Fire 2,818,493 Planning and Development Services 781,452 Public Works 1,596,593 Parks and Recreation 1,055,862 Library 225,992 Non-departmental 905,082 Capital Assets held by Internal Service Fund 1,880,362 Governmental Activities Depreciation Expense $14,298,057 Electric $ 5,294,817 Water 4,317,840 Wastewater 4,174,328 Sanitation 563,739 Northgate Parking 258,798 Business-Type Depreciation Expense $14,609,522 D. Interfund Transactions Transfers between funds during the year were as follows: Governmental Business-type Transfers In Transfers Out Activities, net Activities, net Governmental Activities: General Fund $15,158,581 $( 4,444,465) $10,714,117 $ - Debt Service Fund 196,058 - 196,058 - Streets Projects 1,588,163 ( 531,890) 1,056,273 - Other Nonmajor Governmental Funds 3,855,894 ( 2,338,158) 1,517,735 - Internal Service Funds - ( 548,450) ( 548,450) - Business-Type Activities: Enterprise Funds: Electric 743,273 ( 7,436,794) - ( 6,693,521) Water 8,116 ( 2,783,576) - ( 2,775,460) Wastewater 17,652 ( 2,531,377) - ( 2,513,725) Other Nonmajor Enterprise Funds 406,983 ( 1,360,010) - (953,027) $21,974,720 $(21,974,720) $12,935,733 $(12,935,733) Transfers are used to (1) move revenues from the funds with collection authorization to the debt service fund as debt service principal and interest payments become due, (2) move revenues from enterprise funds to the general fund to record the utility transfer in lieu of franchise fees, (3) move revenues from enterprise funds to the general fund for economic development activity, (4) move unrestricted general fund revenues to finance various programs that the government must account for in other funds in accordance with budgetary authorizations. City of College Station, Texas 51 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2014 E. Operating Leases The city acquired property on University Drive known as the Chimney Hill Property in fiscal year 2009 with the intention to build a convention center on the property. Hotel tax funds were used to finance $7,000,000 of the purchase, with the remainder of the purchase price coming from Certificate of Obligation, Series 2009. The purchase price was allocated between the land, $6,555,190, and an existing building on the property, $3,084,795. As of September 30, 2014, the building carried a net value of $2,699,196 and $385,599 in accumulated depreciation. The building at Chimney Hill was partially leased to private businesses when the City acquired the property. At September 30, 2014, one space is being rented on a month-to-month basis to Western Beverage. Two other spaces have leases as follows: Operating Leases Year Ended September 30, Republic Da Vita Total 2014 $108,641 $226,206 $334,847 2015 - 20,226 20,226 $108,641 $246,432 $355,072 F. Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. For the period ended September 30, 2014, the City reported $3,094,137 in charges on debt refunding as deferred outflow of resources. These charges are reported on the government wide Statement of Net Position and will be amortized over the life of the refunding debt. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has only one type of item, which arises only under a modified accrual basis of accounting, which qualifies for reporting in this category. Accordingly the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from the following sources: Unavailable Unearned Total Property tax $1,008,012 $ - $1,008,012 Loans Receivable 211,942 - 211,942 Other-Cemetery Plot Loans Receivable 22,762 - 22,762 $1,242,716 $ - $1,242,716 These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. G. Prior Period Adjustment It was determined that one governmental construction project that was contributed by developers was completed in fiscal year 2013 but was not recorded in donated assets until fiscal year 2014. A prior period adjustment was made to reflect the donated assets and the related depreciation expense that should have been recorded in fiscal year 2013. The prior period adjustment increased the beginning net position by $583,494. City of College Station, Texas 52 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2014 H. Long-Term Debt The City elected to implement GASB Statement 65 for fiscal year 2013. A summary of long-term debt transactions, including current portion, for the year ended September 30, 2014 follows: Amounts Beginning Incurred/ Matured/ Ending Due Within Balance Issued Retired Balance One Year Governmental activities: General obligation bonds $ 79,710,000 $21,230,000 $11,890,000 $ 89,050,000 $ 7,195,000 Certificates of obligation 17,160,000 10,665,000 6,020,000 21,805,000 1,915,000 Premium/discount 3,043,121 3,624,222 319,989 6,347,354 493,973 Governmental activity Long term debt $ 99,913,121 $35,519,222 $18,229,989 $117,202,354 $ 9,603,973 Business-type activities: General obligation bonds $ 39,230,000 $14,635,000 $ 3,965,000 $ 49,900,000 $ 5,230,000 Certificates of obligation 71,025,000 23,340,000 3,055,000 91,310,000 4,005,000 Utility revenue bonds 34,765,000 - 19,845,000 14,920,000 1,525,000 Premium/discount 4,844,226 5,255,494 698,816 9,400,904 794,476 Business-type activity Long term debt $149,864,226 $43,230,494 $27,563,816 $165,530,904 $11,554,476 Due to implementation of GASB No. 63 and 65, deferred loss from refunding transactions have been reclassified from a liability to a deferred outflow of resources and is no longer presented in the long-term debt table presented above. Internal service funds predominantly serve the governmental funds. All internal service funds, except for the utility customer service fund, are included as part of the above totals for governmental activities. Long-term debt at September 30, 2014 includes the following individual issues (not including unamortized premiums or discounts): Interest Rate (%) Issue Date Maturity Date Original Issue Net Retirement Outstanding General Obligation Bonds: 2005 Issue 4.00-6.00 5/1/05 2/15/25 $ 5,710,000 $ 5,710,000 $ - 2006 Issue 4.375-6.375 7/1/06 2/15/26 7,375,000 7,080,000 295,000 2006 Issue – Refunding 4.00-5.00 12/1/06 2/15/18 10,255,000 5,185,000 5,070,000 2007 Issue 4.25-6.25 9/1/07 2/15/27 3,930,000 1,750,000 2,180,000 2008 Issue 4.00-5.00 9/1/08 2/15/28 9,455,000 2,775,000 6,680,000 2009 Issue 3.50-4.00 7/15/09 2/15/21 3,335,000 550,000 2,785,000 2009 Issue – Refunding 2.00-4.00 11/15/09 2/15/20 4,265,000 2,140,000 2,125,000 2010 Issue 2.00-3.50 8/15/10 2/15/30 19,635,000 3,015,000 16,620,000 2010 Issue – Refunding 0.30-5.00 11/15/10 2/15/22 11,245,000 2,945,000 8,300,000 2011 Issue 0.25-1.60 9/15/11 2/15/18 1,960,000 1,120,000 840,000 2012 Issue & Refunding 2.00-5.00 6/1/12 2/15/32 11,515,000 1,820,000 9,695,000 2013 Issue & Refunding 2.00-5.00 8/15/13 2/15/33 14,505,000 1,275,000 13,230,000 2014 Issue & Refunding 2.00-5.00 9/1/14 2/15/34 21,230,000 - 21,230,000 $124,415,000 $35,365,000 $89,050,000 City of College Station, Texas 53 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2014 General Obligation Bonds – Business-type Activities: 2009 Issue – Refunding 2.00-4.00 11/15/09 2/15/20 $ 3,830,000 $ 1,925,000 $ 1,905,000 2010 Issue – Refunding 0.30-5.00 11/15/10 2/15/22 25,905,000 6,195,000 19,710,000 2012 Issue & Refunding 2.00-5.00 6/1/12 2/15/32 9,570,000 2,175,000 7,395,000 2013 Issue & Refunding 2.00-5.00 6/1/12 2/15/32 6,255,000 - 6,255,000 2014 Issue & Refunding 2.00-5.00 8/15/13 2/15/33 14,635,000 - 14,635,000 $ 60,195,000 $10,295,000 $ 49,900,000 Total General Obligation Bonds $184,610,000 $45,660,000 $138,950,000 Certificates of Obligation – Governmental Activities: 2005 Issue 3.00-4.50 5/1/05 2/15/25 $ 7,595,000 $ 7,595,000 $ - 2006 Issue 4.375-6.375 7/1/06 2/15/26 8,325,000 7,915,000 410,000 2007 Issue 4.25-6.25 9/1/07 2/15/27 3,960,000 1,765,000 2,195,000 2008 Issue 3.25-5.00 9/1/08 2/15/28 22,855,000 15,465,000 7,390,000 2009 Issue 3.00-5.00 7/15/09 2/15/29 5,880,000 4,975,000 905,000 2010 Issue 2.00-3.50 8/15/10 2/15/30 1,050,000 810,000 240,000 2014 Issue 2.00-5.00 9/1/14 2/15/34 10,665,000 - 10,665,000 $ 60,330,000 $38,525,000 $ 21,805,000 Certificates of Obligation – Business-type Activities: 2008 Issue 3.25-5.00 9/1/08 2/15/28 $ 15,925,000 $ 3,300,000 $ 12,625,000 2009 Issue 3.00-5.00 7/15/09 2/15/29 30,580,000 9,970,000 20,610,000 2010 Issue 2.00-3.50 8/15/10 2/15/30 2,850,000 395,000 2,455,000 2011 Issue 2.00-3.60 9/15/11 2/15/31 7,920,000 820,000 7,100,000 2012 Issue 2.00-5.00 6/1/12 2/15/32 16,415,000 1,100,000 15,315,000 2013 Issue 2.00-5.00 8/15/13 2/15/33 10,230,000 365,000 9,865,000 2014 Issue 2.00-5.00 9/1/14 2/15/34 23,340,000 - 23,340,000 $107,260,000 $15,950,000 $ 91,310,000 Total Certificates of Obligation $167,590,000 $54,475,000 $113,115,000 Utility Revenue Bonds: 2005 Issue 4.00-5.50 5/1/05 2/1/25 $ 8,035,000 $ 8,035,000 $ - 2005A Issue – Refunding 3.00-5.25 8/1/05 2/1/18 12,995,000 12,995,000 - 2006 Issue 4.375-6.375 7/1/06 2/1/26 16,950,000 16,205,000 745,000 2007 Issue 4.00-5.75 9/1/07 2/1/27 18,665,000 4,490,000 14,175,000 $ 56,645,000 $41,725,000 $ 14,920,000 Total Outstanding Bonds $266,985,000 The annual requirements to amortize debt outstanding as of September 30, 2014 are as follows: Governmental Activities Year Ended September 30, General Obligation Certificates of Obligation Principal Interest Principal Interest 2015 $ 7,195,000 $ 3,347,863 $ 1,915,000 $ 872,791 2016 7,145,000 3,159,601 1,515,000 847,891 2017 7,360,000 2,892,721 1,430,000 794,925 2018 6,645,000 2,619,331 1,370,000 737,781 2018 5,855,000 2,356,546 1,445,000 673,399 2019 26,635,000 8,340,213 7,985,000 2,406,350 2020-2024 19,705,000 3,355,474 4,665,000 840,689 2025-2029 8,510,000 639,826 1,480,000 192,000 2030-2034 $ 89,050,000 $ 26,711,575 $ 21,805,000 $ 7,365,826 City of College Station, Texas 54 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2014 Business-Type Activities General Obligation Certificates of Obligation Utility Revenue Year Ended September 30, Principal Interest Principal Interest Principal Interest 2015 $ 5,230,000 $ 1,974,766 $ 4,005,000 $ 3,540,013 $ 1,525,000 $ 625,012 2016 6,265,000 1,814,200 4,100,000 3,492,099 825,000 569,790 2017 6,280,000 1,568,699 3,985,000 3,361,180 865,000 535,558 2018 5,535,000 1,311,013 4,180,000 3,217,311 915,000 498,610 2019 5,025,000 1,070,550 4,385,000 3,054,861 965,000 458,648 2020-2024 18,590,000 2,448,750 25,070,000 12,555,272 5,650,000 1,596,118 2025-2029 2,975,000 135,125 30,185,000 6,780,471 4,175,000 288,338 2030-2034 - - 15,400,000 1,577,533 - - $ 49,900,000 $ 10,323,103 $ 91,310,000 $ 37,578,740 $ 14,920,000 $4,572,074 The City intends to retire all of its general long-term liabilities, plus interest, from ad valorem taxes. Proprietary fund type long-term debt issued for Northgate Parking Garage, Electric, Water and Wastewater projects will be repaid, plus interest, from the operating revenues of their respective funds. General Obligation Bonds and Certificates of Obligation The City issues General Obligation Bonds and Certificates of Obligation to provide funds for the acquisition and construction of major capital facilities. These types of bonds have been issued by the City for both governmental activities as well as business-type activities. These bonds are reported in the proprietary funds if they are expected to be repaid from proprietary fund revenue. General Obligation Bonds are direct obligations, for which the City has pledged the full faith and credit of the City. These bonds generally are issued as 20-year serial bonds with varying amounts of principal maturing each year. The City is required by bond covenants to create from ad valorem tax revenues a sinking fund sufficient to pay the current interest and principal installments as they become due. In addition to the sinking fund, there are a number of limitations and restrictions contained in the various general obligation bonds and certificate indentures. The City is in compliance with the significant limitations and restrictions at September 30, 2014. On September 1, 2014 the City issued $35,865,000 General Obligation Improvement and Refunding Bonds, Series 2014. The refunded bonds were an advanced refunding of General Obligation Improvement Bonds, Series 2006; Certificates of Obligation, Series 2006; and a portion of Utility Revenue Refunding Bonds, Series 2005A and Utility Revenue Bonds, Series 2006 and was undertaken to reduce total general obligation and utility revenue debt service payments over the next 12 years by $3,459,390 resulting in net present value savings of $2,978,381. The true interest cost of the General Obligation and Refunding Bonds is 2.109203%. Proceeds of $12,695,000 from the sale of the bonds will be used to pay for (1) costs of construction, acquisition of and improvements to City streets; (2) parks and parks facilities improvements, (3) library expansion, and (4) pay the costs incurred in connection with the issuance of the bonds. The City issued $34,005,000 in Certificates of Obligation, dated September 1, 2014, with a true interest cost of 3.099280%. The proceeds from the sale of the Certificates will be used to pay for (1) costs of construction, acquisition of and improvements to City streets, (2) construction of improvements to the City’s combined electric, waterworks and wastewater systems, and (3) to pay costs incurred in connection with the issuance of the Certificates. In 2009, the City issued $31,315,000 in Certificates of Obligation. $2,600,000 of the proceeds was used to purchase land for a convention center site. Council no longer intends to build a convention center, therefore, causing a change in use to the property. In order to maintain the tax exempt status of the 2009 Certificates of Obligation, Council approved to defease the convention center bonds on November 21, 2011. On December 1, 2011 the bonds were defeased. $2,728,149 was placed in an escrow account with Bank of New York to cover the principal and interest amount of the bonds until their call date of February 15, 2019. Also, in 2009, the City issued $5,145,000 in Certificates of Obligation to pay for a portion of the construction of a new municipal landfill. City of College Station, Texas 55 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2014 BVSWMA, Inc. has pledged to repay the $5,145,000 plus interest to the City of College Station. As of September 30, 2014 BVSWMA, Inc. owed the City $4,100,000. Revenue Bonds Utility system revenue bonds are secured by the net revenues of the Electric, Water, and Wastewater Funds as defined in the respective bond indentures. The City pledges income derived from the acquired or constructed assets to pay the debt service. In addition, the City is required to maintain debt service funds and bond reserve funds for all outstanding revenue bonds. Amounts in the reserve fund are to be used to pay principal and interest on outstanding bonds at any time sufficient funds are not available in the bond interest and redemption fund. The bond indentures require that the City accumulate reserves of an amount equal to the average annual principal and interest requirements of all outstanding bonds secured by the net revenues of the system. Arbitrage Compliance Arbitrage provisions of the Internal Revenue Tax Act of 1986 require the City to rebate to the federal government excess arbitrage earnings from bond proceeds. As of September 30, 2014, the City did not have an arbitrage rebate liability. Defeasance In prior years, the City issued refunding bonds to defease certain outstanding bonds for the purpose of consolidation and to achieve debt service savings. The City has placed the proceeds from the refunding issues in irrevocable escrow accounts with a trust agent to ensure payment of debt service on the refunded bonds. Accordingly, the trust account assets and liabilities for the defeased bonds are not included in the City’s financial statements. Although defeased, the refunded debt from these earlier issues will not be retired until the call dates have come due or until maturity if they are not callable issues. On September 30, 2014, the City’s escrow balance for bonds defeased on December 1, 2011 was $2,191,075. The defeased bonds are not callable until February 15, 2018. The escrow balance for bonds defeased on September 1, 2014 was $21,267,000. The defeased bonds are not callable until February 1, 2015 and February 15, 2015. I. Components of Fund Balance Fund balances for governmental funds at September 30, 2014 are as follows: General Debt Service Streets Projec ts Other Total Fund balances: Nonspendable: Assets Held for Resale $ - $ - $ - $ 6,485,508 $6,485,508 Inventories 45,181 - - - 45,181 Prepaids 19,413 - - - 19,413 Restricted for: Community and Neighborhood Parks - - - 4,270,830 4,270,830 Community Development - - - 1,659,028 1,659,028 Court Security Fee - - - 49,247 49,247 Court Technology Fee - - - 450,134 450,134 Debt Service - 3,214,434 - - 3,214,434 Drainage Fee - - - 3,143,513 3,143,513 General Government Capital Projects - - 23,569,205 6,776,791 30,345,996 Hotel Occupancy Tax - - - 5,157,946 5,157,946 Juvenile Case Manager - - - 288,145 288,145 Parks and Recreation Capital Projects - - - 8,645,168 8,645,168 Police Seizure - - - 84,487 84,487 Wolf Pen Creek TIF - - - 1,253,781 1,253,781 Truancy Prevention - - - 8,508 8,508 West Medical District TIRZ No. 18 - - - 75,131 75,131 East Medical District TIRZ No. 19 - - - 1,037 1,037 PEG Access Channel - - - 230,247 230,247 Meyer Estate Gift - - - 116,250 116,250 City of College Station, Texas 56 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2014 General Debt Service Streets Projec ts Other Total Committed to: College Station Cemetery Perpetual Care - - - 1,810,874 1,810,874 Memorial Cemetery - - - 1,561,202 1,561,202 Memorial Cemetery Perpetual Care - - - 757,993 757,993 Assigned to: Encumbrances 1,457,390 - - - 1,457,390 Unassigned 18,722,265 - - - 18,722,265 $20,244,249 $ 3,214,434 $23,569,205 $42,825,820 $89,853,708 V. Other Information A. Property Taxes Property tax is levied each October 1 on the assessed (appraised) value listed as of the prior January 1 for all real and business personal property located in the City. Taxable assessed value represents the appraisal value less applicable exemptions authorized by the City Council. Taxes are due October 1 and are delinquent after the following January 31. Tax liens are automatic and become enforceable as of January 1 of each year. Taxes become delinquent February 1 and are subject to interest and penalty charges. The tax rate to finance general governmental services including debt service was 42.5958 cents per $100 of assessed valuation for the year ended September 30, 2014. 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. 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 percent of its appraised value. Real property must be reappraised at least every three 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 eight (8) percent, qualified voters of the City may petition for an election to determine whether to limit the tax rate to no more than eight (8) percent above the tax rate of the previous year. Brazos County bills and collects the property taxes for the City. B. Risk Management A government entity such as the City of College Station faces many risks. These risks generally can be divided into four loss categories: direct property loss, indirect property loss, liability loss, and personnel losses. The City employs a combination of risk management strategies to provide acceptable levels of protection from these exposures. The City is self-insured for health benefits, and the plan is administered by Blue Cross Blue Shield of Texas. This activity is accounted for in the Employee Benefits Fund, which is funded monthly from employee contributions and City operating funds. Contributions are determined based on an analysis of prior year claims and administrative costs and a forecast of future claims and administrative costs. The City’s stop loss insurance policy limits the City’s liability to $150,000 per individual per year, with an aggregate attachment point for the last 12 months of $7,066,412. The liability for outstanding losses includes $1,172,446 for claims incurred but not reported as of September 30, 2014. In fiscal year 2014, City real and personal property and mobile equipment was insured by Affiliated FM, A.M. Best rated A+, financial category XV. Affiliated FM premiums were funded by calculated contributions from the City's operating funds. Affiliated FM provided claims handling for these coverage lines. The City carried a City of College Station, Texas 57 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2014 property insurance policy deductible between $100,000 and $250,000 per occurrence, depending on type of loss. Property insurance covered all direct losses and some indirect losses. The City self-insures all liability coverage lines. Licensed adjusters in the City’s Risk Management office process liability claims with assistance from Abercrombie, Simmons & Gillette (AS&G), a Third Party Administrator, which also handles the City’s Workers' Compensation claims. In the event of a simultaneous liability and Workers' Compensation claim, only one SIR (self-insured retention) applies. To further protect the City from catastrophic loss, the City carries excess liability and Workers’ Compensation coverage through Star Insurance Company; A.M. Best rated B++, financial category X. The self-insured retention ("SIR") for 2014 was $500,000 per claim. Liabilities in the property and casualty fund and the Workers’ Compensation fund are reported to the carrier when it is probable a covered loss has occurred and the loss amount can be reasonably estimated. Liabilities include an amount for claims incurred but not reported. Based on the most recent actuarial study, the City has recorded a potential liability of $194,012 in the property and casualty fund and a potential liability of $284,178 in the Workers’ Compensation fund. The results of the process to estimate the claims liability is not exact, as it depends on many complex factors, such as inflation, changes in legal doctrines, and damage awards. Accordingly, claims are re-evaluated periodically to accommodate the effects of inflation, recent claim settlement trends (including frequency and amount of pay-outs), and other economic and social factors. Settlements have not exceeded self-insured retention in each of the past three fiscal years. As a reimbursing employer, the City uses the Unemployment Fund to pay qualified claims filed under the Texas Unemployment Compensation Act. Monthly contributions to fund this activity are based on a percentage of payroll determined annually during the budget process. The liabilities for insurance claims reported in each of the funds are based on Governmental Accounting Standards Board Statement No. 10, which requires a liability for claims to be reported if information prior to the issuance of the financial statements indicates it is probable a liability has been incurred at the date of the financial statements and if the amount of the loss can be reasonably estimated. These liabilities include an estimate for incurred but not reported claims. Changes in the balances of claims liabilities for the self-insurance funds accounted for as Internal Service Funds for fiscal years 2014 and 2013 are as follows: 2014 2013 Unpaid Claims, October 1 $1,641,547 $1,515,910 Incurred Claims (including IBNR’s) 7,256,283 6,553,303 Claims Paid (7,247,194) (6,427,666) Unpaid Claims, September 30 $1,650,636 $1,641,547 C. Joint Venture In 1990 the Brazos Valley Solid Waste Management Agency (“BVSWMA”) was formed under a joint solid waste management agreement between the Cities of College Station and Bryan. College Station and Bryan agreed to cooperatively operate a joint facility for the proper disposal of solid waste for the two cities and outside customers. Each City reported 50% ownership in BVSWMA. The City of College Station served as landfill operator. This basic structure is how BVSWMA operated until 2010. In February 2010 the City Councils for the City of Bryan and the City of College Station approved Articles of Incorporation for BVSWMA, Inc. a Local Government Corporation under the provisions of Subchapter D of Chapter 431, Texas Transportation Code; and Chapter 394, Texas Local Government Code. In March 2010, the City Councils of Bryan and College Station approved by-laws for BVSWMA, Inc., which establishes the power to issue debt and to acquire land. The powers of BVSWMA, Inc. are vested in a 7 member Board of Directors, with each City Council appointing 3 members and the 7th member to be selected by an approval process set forth in the Articles of Incorporation and deemed to have been appointed by the Cities. City of College Station, Texas 58 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2014 On September 13, 2010, Bryan City Council, College Station City Council and the BVSWMA, Inc. Board of Directors formalized the creation of BVSWMA, Inc. and the dissolution of BVSWMA, effective October 1, 2010, with the approval and execution of a(n): •Borrowed Employee Agreement between the City of College Station and BVSWMA, Inc.; •Asset Transfer and Debt Reimbursement Agreement between BVSWMA, Inc., the City of College Station and the City of Bryan; •Agreement between the City of College Station, the City of Bryan and BVSWMA, Inc. regarding the Assignment and Assumption of Contracts and Payables; •Final Settlement Agreement and Release related to the final settlement and dismissal of the certain lawsuit referred to as City of Bryan, Texas v. City of College Station, Texas, Cause No. 08-001626-CV-272 in the 272nd District Court of Brazos County, Texas, ("the Lawsuit"); consider the Agreed Motion to Dismiss; and, consider the Agreed Order of Dismissal. Subsequent to the end of the fiscal year ended September 30, 2010, BVSWMA transferred all of its assets to BVSWMA, Inc. College Station reports BVSWMA, Inc. as a joint venture with the City of Bryan and recognizes 50% ownership in BVSWMA, Inc. in the City’s financial statements. Per GASB 14, a Joint Venture (JV) is a legal entity or other organization that results from a contractual arrangement and that is owned, operated, or governed by two or more participants as a separate and specific activity subject to joint control, in which the participants retain (a) an ongoing financial interest or (b) an ongoing financial responsibility. Joint control means that no single participant has the ability to unilaterally control the financial or operating policies of the Joint Venture. An ongoing financial interest includes an equity interest, as defined in paragraph 72, and any other arrangement that causes a participating government to have access to the Joint Venture’s resources. An equity interest in a Joint Venture is manifest in the ownership of shares of Joint Venture stock or by otherwise having an explicit, measurable right to the net resources of a Joint Venture that is usually based on an investment of financial or capital resources by a participating government. An equity interest is explicit and measurable if the Joint Venture agreement stipulates that the participants have a present or future claim to the net resources of the Joint Venture and sets forth the method to determine the participants’ shares of the Joint Venture’s net resources. Per the BVSWMA, Inc. by-laws, paragraph 8.05, Section 431.107 of the Texas Transportation Corporation Act entitles the Cities, at all times, to have the right to equally receive the income earned by the corporation. Also, per BVSWMA, Inc.’s by-laws, paragraph 4.03a, the corporation, with the approval of the Cities, is authorized to issue short-term debt; however, the Cities shall be given the first opportunity to provide these funds before the Board incurs debt. This would result in the City of College Station providing an investment of financial resources to BVSWMA, Inc. An ongoing financial responsibility for a Joint Venture occurs if a participating government is obligated in some manner for the debts (see paragraph 33 of GASB 14) of the Joint Venture, or if the Joint Venture’s continued existence depends on the continued funding by the government. Per paragraph 33 of GASB 14 – A primary government is obligated in some manner for the debt of an organization if it is legally obligated to assume all or part of the debt in the event of default. Per Article XIV, paragraph 14.03, of the Articles of Incorporation of BVSWMA, Inc., upon dissolution of the corporation: A. the assets of the corporation shall be distributed equally between the Cities; and B. any remaining liabilities of the corporation shall be shared equally between the Cities. State and federal laws and regulations required BVSWMA, Inc. to place a final cover on its Rock Prairie landfill site when it stopped accepting waste and to perform certain maintenance and monitoring functions at the site City of College Station, Texas 59 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2014 for thirty years after closure. The Rock Prairie Road landfill stopped accepting waste in July 2011, and the Twin Oaks Landfill in Grimes County began accepting waste. During the fiscal year ending September 30, 2013, the installation of the remaining final cover at the Rock Prairie Road Landfill (+/- 40 acres) was completed. Although closure and post closure care costs will be paid only near or after the date that the landfill stopped accepting waste, BVSWMA, Inc. reports a portion of these closure and post closure care costs as an operating expense in each period based on landfill capacity used as of each balance sheet date. Actual cost may be higher due to inflation, changes in technology, or changes in regulations. The following is a summary of information from the audited financial statements of BVSWMA, Inc. as of September 30, 2014: 2014 2013 Assets: Current assets $ 9,670,973 $ 10,067,993 Capital assets 34,869,839 33,003,796 Accumulated depreciation ( 8,507,566) ( 7,140,312) Deferred landfill permits 3,113,379 3,113,380 Less: accumulated amortization ( 115,421) ( 81,982) Total assets 39,031,204 38,962,875 Liabilities: Current liabilities 898,617 882,990 Noncurrent liabilities: Accrued post closure maintenance costs 4,303,614 4,373,644 Other noncurrent liabilities 8,010,000 8,470,000 Total liabilities 13,212,231 13,726,634 Net position Net investment in capital assets 17,892,273 16,948,483 Unrestricted 7,926,700 8,287,758 Total net position $25,818,973 $ 25,236,241 Program revenues $ 7,649,864 $ 7,266,856 Expenses 6,721,679 6,509,915 Operating income 928,185 756,941 General revenues/(expenses) ( 345,453) 52,508 Change in net position $ 582,732 $ 809,449 The City’s share of BVSWMA, Inc.’s net assets for fiscal year 2014 was $12,909,486. A copy of BVSWMA, Inc.’s financial statements may be obtained from the City’s Fiscal Services Department. D. Pension Plan 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"), an agent multiple- employer public employee retirement system. The plan provisions that have been adopted by the City are within the options available in the governing state statutes of TMRS. TMRS issues a publicly available comprehensive annual financial report that includes financial statements and required supplementary information (RSI) for TMRS; the report also provides detailed explanations of the contributions, benefits and actuarial methods and assumptions used by the System. The report may be obtained by writing to TMRS, Post Office Box 149153, Austin, Texas 78714-9153 or by calling 800-924-8677; in addition, the report is available on TMRS’ website at http://www.tmrs.com/. City of College Station, Texas 60 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2014 The plan provisions are adopted by the governing body of the City, within the options available in the state statutes governing TMRS. Plan provisions for the City were as follows: Plan Year 2012 Plan Year 2013 Plan Year 2014 Employee Deposit Rate 7.00% 7.00% 7.00% Matching Ratio (City to Employee) 2 to 1 2 to 1 2 to 1 Years Required for Vesting 5 5 5 Service Retirement Eligibility 20 years at any age, 20 year at any age, 20 years at any age 5 years at age 60 & older 5 years at age 60 & older 5 years at age 60 & older Updated Service Credit 100% Repeating 75% Repeating 75% Repeating Transfers Transfers Transfers Annuity Increase (to retirees) 70% of CPI Repeating 50% of CPI Repeating 50% of CPI Repeating Contributions Under the state law governing TMRS, the contribution rate for each city is determined annually by the actuary, using the Projected Unit Credit actuarial cost method. This rate consists of the normal cost contribution rate and the prior service cost contribution rate, which is calculated to be a level percent of payroll from year to year. The normal cost contribution rate finances the portion of an active member’s projected benefit allocated annually; the prior service contribution rate amortizes the unfunded actuarial liability over the applicable period for that City. Both the normal cost and the prior service contribution rates include recognition of the projected impact of annually repeated benefits, such as Updated Service Credits and Annuity Increases. The City contributed to the TMRS Plan at an actuarially determined rate. Both the employees and the City made contributions monthly. Since the City needs to know its contribution rate in advance for budgetary purposes, there is a one-year delay between the actuarial valuation that serves as the basis for the rate and the calendar year when the rate goes into effect. The annual pension cost and net pension obligation are as follows: 2012 2013 2014 Annual Required Contribution (ARC) $7,323,878 $7,441,907 $6,251,605 Interest on Net Pension Obligation 356,127 388,924 488,761 Adjustment to the ARC (285,718) (341,701) (439,499) Annual Pension Cost 7,394,287 7,489,130 6,300,867 Contributions Made (6,586,598) (6,062,866) (5,857,976) Increase (Decrease) in net pension obligation 807,689 1,426,264 442,891 Net Pension Obligation/(Asset), beginning of year 4,748,366 5,556,055 6,982,319 Net Pension Obligation/(Asset), end of year $ 5,556,055 $ 6,982,319 $7,425,210 Three Year Trend Information Fiscal Year Ending Annual Pension Cost (APC) Actual Contribution Made Percentage of APC Contributed Net Pension Obligation 9/30/2012 $7,394,287 $6,586,598 89.08% $5,556,055 9/30/2013 7,489,130 6,062,866 80.96% 6,982,319 9/30/2014 6,300,867 5,857,976 92.97% 7,425,210 The required contribution rates for fiscal year 2014 were determined as part of the December 31, 2012 and 2011 actuarial valuations. City of College Station, Texas 61 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2014 Valuation Date 12/31/2011 12/31/2012 12/31/2013 Actual Cost Method Projected Unit Credit Level Percent of Payroll Projected Unit Credit Level Percent of Payroll Entry Age Normal Amortization Method GASB 25 Equivalent Single Amortization Period 26.3 years; closed period 25.3 years; closed period 24.0 years; closed period Amortization Period for new Gains/Losses 30 years 30 years 30 years Asset Valuation Method Actuarial Assumptions: 10-year Smoothed Market 10-year Smoothed Market 10-year Smoothed Market Investment Rate of Return 7.0% 7.0% 7.0% Projected Salary Increases Varies by age and service Varies by age and service Varies by age and service Includes Inflation at 3.00% 3.00% 3.00% Cost-of-Living Adjustments 1.5% 1.5% 1.5% Funded Status and Funding Progress – In June 2011, SB 350 was enacted by the Texas Legislature resulting in a restructure of the TMRS funds. This legislation provided for the actuarial valuation to be completed, as if restructuring had occurred on December 31, 2010. In addition, the actuarial assumptions were updated for the new fund structure, based on an actuarial experience study that was adopted by the TMRS Board at their May 2011 meeting (the review compared actual to expected experience for the four-year period of January 1, 2006 through December 31, 2009). For a complete description of the combined impact of the legislation and new actuarial assumptions, including the effects on TMRS city rates and funding ratios, please see the December 31, 2010 TMRS Comprehensive Annual Financial Report (CAFR). The funded status as of December 31, 2013, the most recent actuarial valuation date, is as follows: Actuarial Valuation Date Actuarial Value of Assets Actuarial Accrued Liability (AAL) Unfunded AAL (UAAL) Funded Ratio Covered Payroll (Calendar Year) UAAL as a Percentage of Covered Payroll 12/31/2011 $159,366,251 $203,122,476 $43,756,225 78.5% $41,553,358 105.3% 12/31/2012 174,277,295 198,075,559 23,798,264 88.0% 41,386,265 57.5% 12/31/2013 188,844,993 221,999,821 33,154,828 85.1% 42,175,173 78.6% The Schedule of Funding Progress, presented as Required Supplementary Information following the notes to the financial statements, presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability of benefits. E. Other Post Employment Benefits In addition to the pension benefits described in Note V.D., as required by state laws and defined by City policy, the City makes available postretirement medical, dental, vision, drug and life insurance benefits to all employees who meet TMRS retirement qualifications, retire from the City and who enroll themselves and their eligible dependent(s) on or before the effective date of their retirement through the City’s single-employer defined benefit other post-employment benefit (OPEB) plan. The life insurance plan provides a $10,000 fully insured death benefit coverage upon retirement which ceases upon attainment of age 65 for retirees. So long as monthly premium payments are made, the healthcare plan provides coverage until age 65 to eligible retirees, their City of College Station, Texas 62 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2014 spouses and dependents through the City’s group health insurance plan, which covers both active and retired members. Benefit provisions as well as retiree premium contributions are established by management. The City determines the employer and participant contribution rates annually based on recommendations of City staff and the City’s consultant. All medical, dental, vision and drug care benefits are provided through the City’s self-insured health plan. The benefit levels are the same as those afforded to active employees. Life insurance for eligible retirees is paid entirely by the City. During fiscal year 2014, fifty former employees were covered under this arrangement, with claims less retiree contributions totaling ($234,146). Annual OPEB Cost and Net OPEB Obligation The City’s annual OPEB cost is based on the annual required contribution (ARC) of the City, an amount actuarially determined in accordance with the parameters of GASB Statement 45. Despite the apparent implications of the term ARC, the City is not required to contribute the ARC to the plan each year, Instead, the ARC provides a basis for evaluating whether the City’s contributions for OPEB are adequate to fund the benefits during the working lifetime of current employees (i.e., the normal cost) and to amortize existing unfunded obligations (i.e., the obligations for current retirees plus that portion of the current employees’ obligations that are attributed to past service) in a systematic manner over the amortization period prescribed by GASB. The annual OPEB cost is the annual accounting expense recorded on the City’s Statement of Revenues, Expenses and Changes in Net Position and on the City’s Statement of Activities. The annual OPEB cost is equal to (1) the ARC for the current fiscal year, plus (2) interest on the Net OPEB Obligation at the beginning of the year, reduced by (3) an adjustment to the ARC which is equal to an amortization of the beginning of the year Net OPEB Obligation. As described in Note V.C, the City terminated its Borrowed Employee Agreement with BVSWMA, Inc. Therefore, the related OPEB obligation of $134,385 was removed. 2012 2013 2014 Annual Required Contribution (ARC) $1,360,907 $1,449,844 $1,449,843 Interest on Net Pension Obligation 276,044 333,710 402,404 Adjustment to the ARC ( 342,039) ( 413,492) ( 413,492) Annual OPEB Cost 1,294,912 1,370,062 1,438,755 Contributions Made (141,585) 3,833 ( 234,146) Increase (Decrease) in net pension obligation 1,153,327 1,373,895 1,204,609 Net OPEB Obligation/(Asset), beginning of year 5,520,878 6,674,205 8,048,100 Net OPEB Obligation/(Asset), end of year $6,674,205 $ 8,048,100 $9,252,709 Accounting Year Ending Annual OPEB Cost Actual Contribution Made Percentage of Annual OPEB Cost Contributed Net OPEB Obligation 9/30/2012 $1,294,912 $141,585 10.93% $6,674,205 9/30/2013 1,370,062 ( 3,833) -0.28% 8,048,100 9/30/2014 1,438,757 234,146 16.27% 9,252,709 Generally, the Net OPEB Obligation is the cumulative difference since the effective date of GASB 45 between the annual OPEB cost and the employer’s contributions to the plan including the OPEB liability (asset) at transition, if any. Because the City did not have an OPEB liability/(asset) at transition, the Net OPEB Obligation City of College Station, Texas 63 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2014 as of October 1, 2008 is zero. Whenever the City contributes an amount less than the annual OPEB cost, this shortfall will increase the City’s Net OPEB Obligation. Actuarial Methods and Assumptions Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of events far into the future. Actuarially determined amounts are subject to continual revision as actual results are compared to past expectations and new estimates are made about the future. The required Schedule of Funding Progress immediately following the notes to the financial statements presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits. GASB No. 45 calculations are based on the types of benefits provided under the terms of the substantive plan at the time of each valuation and on the pattern of sharing of costs between the employer and plan participants to that point. In addition, the projection of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations on the pattern of cost sharing between the employer and plan participants in the future. Actuarial calculations reflect a long-term perspective. In addition, consistent with that perspective, actuarial methods and assumptions used in developing the amounts in this report include techniques that are designed to reduce short-term volatility in actuarial accrued liabilities. The required contribution rates were determined as part of the October 1, 2012 actuarial valuation. Significant methods and assumptions follow: Actuarial Valuation Date 10/1/2012 Asset Valuation Method Market Actuarial Cost Method Projected Unit Credit Actuarial Assumptions: Annual Investment Return Assumption* 5.0% Includes Inflation at: 4.0% Projected Salary Increases N/A Annual Healthcare Trend Rates 8.5% in FYE 2013, declining to 5.0% in FYE 2020 Amortization Method Level dollar Amortization Period 30 year open period Funding Status and Funding Progress The Schedule of Funding Progress presents information as of the current valuation date and the two preceding valuation dates. As of the date of this financial statement, the City has had two valuations, that for the fiscal year beginning October 1, 2010, and one for the fiscal year beginning October 1, 2012. Actuarial Valuation Date Actuarial Value of Assets Actuarial Accrued Liability (AAL) Unfunded AAL (UAAL) Funded Ratio Covered Payroll (Calendar Year) UAAL as a Percentage of Covered Payroll 10/1/2010 - $13,868,768 $13,868,768 0.0% $42,298,776 32.79% 10/1/2010 - 9,356,116 9,356,116 0.0% 42,298,776 22.12% 10/1/2012 - 10,897,037 10,897,037 0.0% 44,000,000 24.77% There are factors that affect the ability to compare amounts reported from one actuarial valuation date to the next. The assumptions that have been changed since the previous valuation are: - the Discount Rate has been updated to reflect changes in the allocation of assets of the employer and the expected return on such assets; - the Assumed Per Capita Health Benefit Costs and Assumed Expenses for retirees and dependents have been updated to reflect changes in claims and expense expectations; and City of College Station, Texas 64 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2014 - the Health Benefit Cost Trend and Expense Trend have been updated to reflect changes in short-term expectations of the annual rate of increase of the Assumed Per Capita Health Benefit Costs. The City has had two separate valuations, one of which used the October 1, 2010 valuation date and one that used the October 1, 2012 valuation date. The October 1, 2010 valuation date was used to develop results for the fiscal year ending September 30, 2012, and the October 1, 2012 valuation date was used to develop results for the fiscal years ending September 30, 2013 and 2014. The plan was changed effective January 1, 2012 to eliminate post-65 medical coverage and was changed effective January 1, 2013 to eliminate one of the PPO benefit options. While the plan typically undergoes a biennial valuation, pursuant to paragraph 12 of GASB 45, a new valuation must be performed if there are significant changes to the plan since the previous valuation. As previously stated, for the fiscal year ending September 30, 2014, an actuarial valuation incorporating these changes to the plan provisions was performed using October 1, 2012 valuation date. F. Deferred Compensation Plan The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code ("IRC") 457. The plan, as amended, is available to all employees and permits them to defer a portion of their salary until future years. The plan funds are not available to employees until termination, retirement, death, or emergency. All amounts of compensation deferred under the plan (until paid or made available to the employee or other beneficiary) were placed in trust for the exclusive benefit of the participants and the beneficiaries. This action is in accordance with changes made to IRC Section 457. The City is not the 457 Plan Administrator or trustee and the assets of the plan are not reportable in the City's basic financial statements. G. Commitments and Contingencies Construction Commitments The City has contractual commitments of $7,022,151 in the Capital Projects Funds, $1,688,834 in the Water Fund, $2,111,852 in the Wastewater Fund and $447,773 in the Electric Fund. These commitments are for construction of various projects and will be funded primarily from long-term debt. Contingencies The City participates in a number of federal and state assisted grant programs. These programs are subject to program compliance audits by the grantors or their representatives. Any liability for reimbursement which may arise as the result of these audits is not believed to be material. Litigation The City is a party to legal proceedings, many of which occur in the normal course of operations. It is not possible at the present time to estimate the ultimate outcome or liability, if any, of the city with respect to the various proceedings. Management believes any unfavorable outcomes would not be material. Financial Hedging According to the Public Funds Investment Act, a municipality that owns a municipal electric utility that is engaged in the distribution and sale of electric energy or natural gas to the public may enter into a hedging contract and related security and insurance agreements in relation to fuel oil, natural gas, coal, nuclear fuel, and electric energy to protect against loss due to price fluctuations. In fiscal year 2014, the City signed a contract with the City of Garland under which the City of Garland will serve as the qualified scheduling entity that will formulate and discuss the hedging strategies and options available to the City to manage its power supply portfolio and price. The City has not yet engaged in any hedging activity. City of College Station, Texas 65 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2014 H. Bonds Available for Sale Authorized general obligation bonds available for future issue are as follows: Year Unissued Authorized Amount Public Buildings 1984 $ 700,000 1 Street Improvements 1984 500,000 1 Municipal Complex Improvements 2003 3,655,000 Library Expansion 2008 7,885,000 Parks and Recreation 2008 645,000 Street Improvements 2008 18,290,000 Total $31,675,000 I Contains projects which may have been completed or abandoned; therefore, these bonds are not likely to ever be issued. I. Revenue Bond Coverage All the net revenues of the Electric, Water, and Wastewater 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. Subsequent Events In October 2014 the City sold the property on University Drive known as the Chimney Hill property for $7,500,000. The proceeds from this sale, along with the revenue received from rent, net of expenses, from the property from date of purchase through October 2014 will be placed in the Hotel Tax Fund. City of College Station, Texas 66 UAAL as a Actuarial Actuarial Covered Percentage Actuarial Value of Accrued Unfunded Funded Payroll of Covered Valuation Assets ** Liability (AAL) AAL (UAAL) Ratio (Calendar Year) Payroll Date* (a) (b) (b-a) (a/b) (c) [(b-a)/c] 12/31/2004 70,336,601$ 87,906,815$ 17,570,214$ 80.0% 30,978,906$ 56.7% 12/31/2005 75,655,678 94,605,300 18,949,622 80.0% 31,987,028 59.2% 12/31/2006 80,758,249 102,166,047 21,407,798 79.0% 34,143,239 62.7% 12/31/2007 87,193,697 130,310,054 43,116,357 66.9% 36,703,161 117.5% 12/31/2008 90,243,677 138,576,504 48,332,827 65.1% 40,337,456 119.8% 12/31/2009 97,331,304 148,904,236 51,572,932 65.4% 41,515,345 124.2% 12/31/2010 145,688,745 190,548,951 44,860,206 76.5% 40,662,340 110.3% 12/31/2011 159,366,251 203,122,476 43,756,225 78.5% 41,553,358 105.3% 12/31/2012 174,277,295 198,075,559 23,798,264 88.0% 41,386,265 57.5% 12/31/2013 188,844,993 221,999,821 33,154,828 85.1% 42,175,173 78.6% *Assets are stated as of December 31 of the preceding year, the date of the actuarial valuation. ** Information is from appropriate year supplements to TMRS annual reports. In June 2011, SB 350 was enacted by the Texas Legislature resulting in a restructure of the TMRS funds. This legislation provided for the actuarial valuation to be completed as if restructuring had occurred on December 31, 2010, In addition, the actuarial assumptions were updated for the new fund structure, based on an actuarial experience study that was adopted by the TMRS Board at their May 2011 meeting (the review compared actual to expected experience for the four year period of January 1, 2006 through December 31, 2009). For a complete description of the combined impact of the legislation and new actuarial assumptions, including the effects on TMRS city rates and funding ratios, please see the December 31, 2013 TMRS Comprehensive Annual Financial Report (CAFR). The Actuarial Accrued Liability (AAL), the Unfunded AAL (UAAL) and the covered calendar year payroll figures reported above represent the entire City of College Station workforce. CITY OF COLLEGE STATION, TEXAS Required Supplementary Information Texas Municipal Retirement System Schedule of Funding Progress Last Ten Fiscal Years (unaudited) 67 UAAL as a Actuarial Actuarial Actuarial Covered Percentage Valuation Value of Accrued Unfunded Funded Payroll of Covered Date Assets Liability (AAL) AAL (UAAL) Ratio (Fiscal Year) Payroll 10/1/2010 - 13,868,768$ 13,868,768$ 0.0%42,298,776$ 32.79% 10/1/2010 - 9,356,116 9,356,116 0.0%42,298,776 22.12% 10/1/2012 - 10,897,037 10,897,037 0.0%44,000,000 24.77% The Actuarial Accrued Liability (AAL), the Unfunded AAL (UAAL) and the covered fiscal payroll figures reported above represent the entire City of College Station workforce. The City has had two valuations. The October 1, 2010 valuation date was used to develop results for the fiscal year ending September 30, 2012. The October 1, 2012 valuation date was used to develop results for the fiscal years ended September 30, 2013 and September 30, 2014. The plan was changed effective January 1, 2012 to eliminate post-65 medical coverage and was changed effective January 1, 2013 to eliminate one of the PPO benefit options. While the plan typically undergoes a biennial valuation, pursuant to paragraph 12 of GASB 45, a new valuation must be performed if there are significant changes to the plan since the previous valuation. As previously stated, for the fiscal year ending September 30, 2013, a new actuarial valuation incorporating these changes to the plan provisions was performed using October 1, 2012 valuation date. CITY OF COLLEGE STATION, TEXAS Required Supplementary Information City of College Station Employees Other Post Employment Benefits Plan Schedule of Funding Progress Last Two Fiscal Years (unaudited) 68 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Ad valorem taxes 14,513,579$ 14,513,579$ 14,402,353$ -$ 14,402,353$ (111,226)$ Sales taxes 23,495,000 23,495,000 24,565,649 - 24,565,649 1,070,649 Mixed drink and franchise 2,513,025 2,513,025 2,983,520 - 2,983,520 470,495 Licenses and permits 1,090,826 1,090,826 1,424,598 - 1,424,598 333,772 Intergovernmental 236,200 236,200 189,103 - 189,103 (47,097) Parks and recreation charges for services 143,000 143,000 169,680 - 169,680 26,680 Other charges for services 2,370,606 2,370,606 2,818,098 - 2,818,098 447,492 Fines, forfeits, and penalties 3,565,836 3,565,836 3,038,926 - 3,038,926 (526,910) Investment income 82,555 82,555 66,264 - 66,264 (16,291) Rents and royalties 587,097 587,097 542,816 - 542,816 (44,281) Contributions 15,096 15,096 11,016 - 11,016 (4,080) Other 154,071 154,071 113,802 -113,802 (40,269) Total revenues 48,766,891 48,766,891 50,325,825 -50,325,825 1,558,934 Expenditures General government 4,848,752 5,462,692 5,108,448 - 5,108,448 (354,244) Fiscal services 3,089,697 3,103,697 3,029,566 - 3,029,566 (74,131) Police 17,236,201 17,377,908 17,080,568 - 17,080,568 (297,340) Fire 13,532,961 13,614,076 13,585,022 - 13,585,022 (29,054) Planning and development services 3,752,133 3,419,876 2,867,857 - 2,867,857 (552,019) Public works 7,692,566 8,907,960 8,342,924 - 8,342,924 (565,036) Parks & recreation 5,069,707 5,175,501 4,596,645 - 4,596,645 (578,856) Information technology 4,345,737 4,408,785 4,207,305 - 4,207,305 (201,480) Library 1,085,099 1,087,688 1,078,851 - 1,078,851 (8,837) Contributions 1,192,046 1,192,046 1,184,115 - 1,184,115 (7,931) Other 149,104 1,196,066 222,034 -222,034 (974,032) Total expenditures 61,994,003 64,946,295 61,303,335 -61,303,335 (3,642,960) Excess (deficit) of revenues over (under) expenditures (13,227,112) (16,179,404) (10,977,510) -(10,977,510) 5,201,894 Other financing sources (uses) Sale of capital assets - - 4,582,111 - 4,582,111 4,582,111 Transfers in 15,265,241 15,101,168 15,158,581 - 15,158,581 57,413 Transfers out (3,773,019) (4,481,541) (4,444,465) - (4,444,465) 37,076 Contingency (316,943) (135,926) - - -135,926 Total other financing sources (uses) 11,175,279 10,483,701 15,296,227 -15,296,227 4,812,526 Net change in fund balances (2,051,833) (5,695,703) 4,318,717 - 4,318,717 10,014,420 Fund balances, October 1 15,925,532 15,925,532 15,925,532 -15,925,532 - Fund balances, September 30 13,873,699$ 10,229,829$ 20,244,249$ -$ 20,244,249$ 10,014,420$ Note: The City prepares its annual budget on a budget basis which differs from a a GAAP basis. The budget and all transactions are presented in accordance with the budget basis in the Schedule of Revenues, Expenditures, and Changes in Fund Balance-Budget and Actual-General Fund to provide a relevant comparison of actual results with the budget. See Notes III A and B for further explanation of budget information. CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual General Fund(s) For the Fiscal Year Ended September 30, 2014 69 COMBINING FINANCIAL STATEMENTS General Fund(s) The General Fund is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. All general tax revenues and other receipts that are not restricted by law or contractual agreement to some other fund are accounted for in this fund. General operating expenditures, fixed charges and capital improvement costs that are not paid through other funds are paid from the General Fund. The General Fund Type has historically incorporated several funds, which have been reported collectively as the General Fund in the City’s Comprehensive Annual Financial Report. For the fiscal year ending September 30, 2014, the General Fund includes: General Fund Economic Development Fund - accounts for funds used for business attraction and retention. Monies for this purpose are transferred to the Economic Development Fund from the General Fund, the Business Park Fund, and the Electric, Water, Wastewater and Sanitation Funds. Unclaimed Property Fund - accounts for checks issued but not cashed. After the abandonment period of 1 year for payroll checks over $100 and 3 years for accounts payable checks over $100, these funds are sent to the State Comptroller. Efficiency Time Payment Fund - accounts for unrestricted revenue collected by the Municipal Court pursuant to Texas Local Government Code, Section 133.103. Chimney Hill Fund - account for the receipt and expenditure of funds by the City from the lease of retail property at the Chimney Hill Center. 70 General Fund Economic Development Unclaimed Property Efficiency Time Payment Chimney Hill Total General Fund Assets Cash and cash equivalents 16,885,703$ 289,230$ 200,869$ 51,201$ 1,608,070$ 19,035,073$ Equity in investments 2,230,908 38,212 26,538 6,765 212,455 2,514,878 Receivable (net of allow for uncollectible)4,121,860 - - - 7,655 4,129,515 Inventories 45,181 - - - - 45,181 Prepaid costs 19,413 - - - -19,413 Total assets 23,303,065$ 327,442$ 227,407$ 57,966$ 1,828,180$ 25,744,060$ Liabilities and fund balances Accounts payable 1,677,212$ -$ -$ 575$ 1,699$ 1,679,486$ Accrued liabilities 1,069,665 - 227,407 - - 1,297,072 Unearned revenue-other 1,016,145 - - - - 1,016,145 Interfund payable - - - - - - Refundable deposits 69,217 - - - 10,764 79,981 Retainage payable 2,593 - - - - 2,593 Customer construction advances 922,650 - - - -922,650 Total liabilities 4,757,482 -227,407 575 12,463 4,997,927 Deferred inflows of resources Unavailable revenue-property taxes 501,884 - - - -501,884 Total deferred inflows of resources 501,884 - - - -501,884 Total liabilities and deferred inflows of resources 5,259,366 -227,407 575 12,463 5,499,811 Fund balances Nonspendable 64,594 - - - - 64,594 Restricted - - - - - - Assigned 1,457,390 - - - - 1,457,390 Unassigned 16,521,715 327,442 -57,391 1,815,717 18,722,265 Total fund balances 18,043,699 327,442 -57,391 1,815,717 20,244,249 Total liabilities, deferred inflows of resources and fund balances 23,303,065$ 327,442$ 227,407$ 57,966$ 1,828,180$ 25,744,060$ CITY OF COLLEGE STATION, TEXAS Combining Balance Sheet General Fund(s) September 30, 2014 71 General Fund Economic Development Unclaimed Property Efficiency Time Payment Chimney Hill Total General Fund(s) Revenues Ad Valorem Taxes 14,402,353$ -$ -$ -$ -$ 14,402,353$ Sales Taxes 24,565,649 - - - - 24,565,649 Mixed Drink and Franchise 2,983,520 - - - - 2,983,520 Licenses and Permits 1,424,598 - - - - 1,424,598 Intergovernmental 189,103 - - - - 189,103 Parks & Recreation Charges for Services 169,680 - - - - 169,680 Other Charges for Services 2,818,098 - - - - 2,818,098 Fines, Forfeits, & Penalties 3,032,049 - - 6,877 - 3,038,926 Investment Income 60,226 866 - 168 5,004 66,264 Rents & Royalties 179,934 - - - 362,882 542,816 Contributions 11,016 - - - - 11,016 Other 113,802 - - - -113,802 Total Revenues 49,950,028 866 -7,045 367,886 50,325,825 Expenditures Current General Government 4,113,975 994,473 - - - 5,108,448 Fiscal Services 3,026,575 - - 2,991 - 3,029,566 Police 17,080,568 - - - - 17,080,568 Fire 13,585,022 - - - - 13,585,022 Planning and Development Services 2,867,857 - - - - 2,867,857 Public Works 7,603,696 - - - 7,607 7,611,303 Capital Improvement Projects 731,621 - - - - 731,621 Parks & Recreation 4,596,645 - - - - 4,596,645 Information Technology 4,207,305 - - - - 4,207,305 Library 1,078,851 - - - - 1,078,851 Contributions 1,184,115 - - - - 1,184,115 Other 129,244 - - -92,790 222,034 Total Expenditures 60,205,474 994,473 -2,991 100,397 61,303,335 Excess(Deficit) of Revenues Over (Under) Expenditures (10,255,446) (993,607) -4,054 267,489 (10,977,510) Other Financing Sources (Uses) Sale of Capital Assets 4,259,903 322,208 - - - 4,582,111 Reimbursed Administration Transfers Transfers In 14,758,581 400,000 - - - 15,158,581 Transfers out (4,444,465) - - - -(4,444,465) Total Other Financing Sources (Uses)14,574,019 722,208 - - -15,296,227 Net Change in Fund Balances 4,318,573 (271,399) - 4,054 267,489 4,318,717 Fund Balances , October 1 13,725,126 598,841 -53,337 1,548,228 15,925,532 Fund Balances, September 30 18,043,699$ 327,442$ -$ 57,391$ 1,815,717$ 20,244,249$ CITY OF COLLEGE STATION, TEXAS Combining Statement of Revenues, Expenditures, and Changes in Fund Balance General Fund(s) For the Fiscal Year Ended September 30, 2014 72 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Ad valorem taxes 14,513,579$ 14,513,579$ 14,402,353$ -$ 14,402,353$ (111,226)$ Sales taxes 23,495,000 23,495,000 24,565,649 - 24,565,649 1,070,649 Mixed drink and franchise 2,513,025 2,513,025 2,983,520 - 2,983,520 470,495 Licenses and permits 1,090,826 1,090,826 1,424,598 - 1,424,598 333,772 Intergovernmental 236,200 236,200 189,103 - 189,103 (47,097) Parks and recreation charges for services 143,000 143,000 169,680 - 169,680 26,680 Other charges for services 2,370,606 2,370,606 2,818,098 - 2,818,098 447,492 Fines, forfeits, and penalties 3,557,705 3,557,705 3,032,049 - 3,032,049 (525,656) Investment income 76,500 76,500 60,226 - 60,226 (16,274) Rents and royalties 176,770 176,770 179,934 - 179,934 3,164 Contributions 15,096 15,096 11,016 - 11,016 (4,080) Other 154,071 154,071 113,802 -113,802 (40,269) Total revenues 48,342,378 48,342,378 49,950,028 -49,950,028 1,607,650 Expenditures General government 3,849,852 4,463,792 4,113,975 - 4,113,975 (349,817) Fiscal services 3,085,697 3,099,697 3,026,575 - 3,026,575 (73,122) Police 17,236,201 17,377,908 17,080,568 - 17,080,568 (297,340) Fire 13,532,961 13,614,076 13,585,022 - 13,585,022 (29,054) Planning and development services 3,752,133 3,419,876 2,867,857 - 2,867,857 (552,019) Public works 7,666,020 8,881,414 8,335,317 - 8,335,317 (546,097) Parks & recreation 5,069,707 5,175,501 4,596,645 - 4,596,645 (578,856) Information technology 4,345,737 4,408,785 4,207,305 - 4,207,305 (201,480) Library 1,085,099 1,087,688 1,078,851 - 1,078,851 (8,837) Contributions 1,192,046 1,192,046 1,184,115 - 1,184,115 (7,931) Other 46,667 1,093,629 129,244 -129,244 (964,385) Total expenditures 60,862,120 63,814,412 60,205,474 -60,205,474 (3,608,938) Excess (deficit) of revenues over (under) expenditures (12,519,742) (15,472,034) (10,255,446) -(10,255,446) 5,216,588 Other financing sources (uses) Sale of capital assets - - 4,259,903 - 4,259,903 4,259,903 Transfers in 14,865,241 15,101,168 14,758,581 - 14,758,581 (342,587) Transfers out (3,773,019) (4,431,541) (4,444,465) - (4,444,465) (12,924) Contingency (316,943) (135,926) - - -135,926 Total other financing sources (uses) 10,775,279 10,533,701 14,574,019 -14,574,019 4,040,318 Net change in fund balances (1,744,463) (4,938,333) 4,318,573 - 4,318,573 9,256,906 Fund balances, October 1 13,725,126 13,725,126 13,725,126 -13,725,126 - Fund balances, September 30 11,980,663$ 8,786,793$ 18,043,699$ -$ 18,043,699$ 9,256,906$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual General Fund (reported as part of the General Fund(s)) For the Fiscal Year Ended September 30, 2014 73 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Investment income 1,514$ 1,514$ 866$ -$ 866$ (648)$ Total revenues 1,514 1,514 866 -866 (648) Expenditures General government 998,900 998,900 994,473 - 994,473 (4,427) Contributions - - - - - - Total expenditures 998,900 998,900 994,473 -994,473 (4,427) Excess (deficit) of revenues over (under) expenditures (997,386) (997,386) (993,607) -(993,607) 3,779 Other financing sources (uses) Sale of capital assets - - 322,208 - 322,208 322,208 Transfers in 400,000 400,000 400,000 - 400,000 - Transfers out - - - - - - Total other financing sources (uses)400,000 400,000 722,208 -722,208 322,208 Net change in fund balances (597,386) (597,386) (271,399) - (271,399) 325,987 Fund balances, October 1 598,841 598,841 598,841 -598,841 - Fund balances, September 30 1,455$ 1,455$ 327,442$ -$ 327,442$ 325,987$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Economic Development Fund (reported as part of the General Fund(s)) For the Fiscal Year Ended September 30, 2014 74 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Fines, forfeits, and penalties 8,131$ 8,131$ 6,877$ -$ 6,877$ (1,254)$ Investment income 120 120 168 -168 48 Total revenues 8,251 8,251 7,045 -7,045 (1,206) Expenditures Fiscal services 4,000 4,000 2,991 -2,991 (1,009) Total Expenditures 4,000 4,000 2,991 -2,991 (1,009) Excess (deficit) of revenues over (under) expenditures 4,251 4,251 4,054 -4,054 (197) Other financing sources (uses) Transfers in - - - - - - Transfers out - - - - - - Total other financing sources (uses)- - - - - - Net change in fund balances 4,251 4,251 4,054 - 4,054 (197) Fund balances, October 1 53,337 53,337 53,337 -53,337 - Fund balances, September 30 57,588$ 57,588$ 57,391$ -$ 57,391$ (197)$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Efficiency Time Payment Fund (reported as part of the General Fund(s)) For the Fiscal Year Ended September 30, 2014 75 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Investment income 4,421$ 4,421$ 5,004$ -$ 5,004$ 583$ Rents and royalties 410,327 410,327 362,882 -362,882 (47,445) Total revenues 414,748 414,748 367,886 -367,886 (46,862) Expenditures Public works 26,546 26,546 7,607 - 7,607 (18,939) Other 102,437 102,437 92,790 -92,790 (9,647) Total expenditures 128,983 128,983 100,397 -100,397 (28,586) Excess (deficit) of revenues over (under) expenditures 285,765 285,765 267,489 -267,489 (18,276) Other financing sources (uses) Transfers in - - - - - - Transfers out - - - - - - Total other financing sources (uses)- - - - - - Net change in fund balances 285,765 285,765 267,489 - 267,489 (18,276) Fund balances, October 1 1,548,228 1,548,228 1,548,228 -1,548,228 - Fund balances, September 30 1,833,993$ 1,833,993$ 1,815,717$ -$ 1,815,717$ (18,276)$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Chimney Hill Fund (reported as part of the General Fund(s)) For the Fiscal Year Ended September 30, 2014 76 COMBINING FINANCIAL STATEMENTS NONMAJOR GOVERNMENTAL FUNDS SPECI AL REVENUE FUNDS Special revenue funds are used to account for specific revenues that are legally restricted or committed to expenditures for particular purposes other than debt service or capital projects. Court Technology Fee Fund - account for funds collected by municipal court to be used to finance the purchase of or to maintain technological enhancements for a municipal court. Court Security Fee Fund - account for funds collected by municipal court used to finance security personnel for a municipal court or to finance items when used for the purpose of providing security services. Juvenile Case Manager Fund - account for funds collected by municipal court used to finance the salary and benefits of a juvenile case manager. Police Seizure Fund - account for funds obtained through forfeiture provisions under federal laws; seized money from delivery of controlled substance in accordance with Public Health Laws. These monies are to be used for training and other law enforcement activities. Memorial Cemetery Fund - account for sales of plots (and options of plots) in the Aggie Field of Honor & Municipal Cemetery. Memorial Cemetery Endowment Fund - account for principal trust amounts received and related interest income for the College Station Memorial Cemetery. Texas Ave. Cemetery Endowment Fund - to account for principal trust amounts received and related interest income for the College Station Cemetery. Hotel Tax Fund - 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. Community Development Fund - account for funds granted to the City by the Federal Department of Housing and Urban Development for use on various community improvement projects. Wolf Pen Creek Tax Increment Financing District Fund - 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. Parks Escrow Fund - 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 community and neighborhood parks in residential areas. Sidewalk Zones - 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 community and neighborhood sidewalks. Drainage Projects Fund - to account for the cost of drainage maintenance and drainage improvements made with funds provided by a drainage utility fee and proceeds from the sale of general obligation bonds. Recreation Fund - is designed to help the city identify costs and revenues associated with sports, concessions, Senior/Teen Centers, and instruction programs. Ultimately, the fund will help identify how much the General Fund is subsidizing adult and youth programs. 77 Truancy Prevention Fee Fund – account for funds collected by municipal court used to fund truancy prevention and intervention services. West Medical District Tax Increment Reinvestment Zone No. 18 Fund – account for the receipt and expenditure of funds received by the City from the creation of a tax increment financing district for the West Medical District. East Medical District Tax Increment Reinvestment Zone No. 19 Fund - account for the receipt and expenditure of funds received by the City from the creation of a tax increment financing district for the East Medical District. Public, Educational and Governmental Access Channel Fee Fund – account for fees collected to fund educational and governmental broadcasting on the local access channel. R.E. Meyer Estate Restricted Gift Fund – account for gift bequest to be used for programs designed to benefit senior citizens. 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. General Government Projects Fund - 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, certificates of obligation and by investing those proceeds. Parks & Recreation Projects Fund - to account for the costs of new parks and improvements to existing parks made with funds provided from the sale of general obligation bonds, certificates of obligation and by investing those proceeds. 78 Court Technology Fee Court Security Fee Juvenile Case Manager Police Seizure Memorial Cemetery Memorial Cemetery Endowment Texas Ave Cemetery Endowment Hotel Tax Community Development Wolf Pen Creek Tax Increment Financing District Assets Cash and cash equivalents 398,169$ 45,059$ 256,634$ 76,281$ 1,379,010$ 669,535$ 1,601,044$ 4,741,087$ 193,091$ 1,107,465$ Equity in investments 52,605 5,953 33,906 10,078 182,192 88,458 211,527 626,384 25,511 146,316 Receivable (net of allow for uncollectible) - - - - 13,868 6,831 2,063 - 1,958,335 - Inventories - - --4,345,118 2,140,132 258 - -- Total assets 450,774$ 51,012$ 290,540$ 86,359$ 5,920,188$ 2,904,956$ 1,814,892$ 5,367,471$ 2,176,937$ 1,253,781$ Liabilities Accounts payable 640$ -$ -$ 1,872$ -$ -$ 1,697$ 37,109$ 266,875$ -$ Accrued liabilities - 1,765 2,395 - - - - - 6,960 - Retainage payable - - - - - - - 172,416 32,132 - Refundable deposits - - ----- - -- Total liabilities 640 1,765 2,395 1,872 --1,697 209,525 305,967 - Deferred inflows of resources Unavailable revenue-loans receivable - - - - - - - - 211,942 - Unavailable revenue-other - - --13,868 6,831 2,063 - -- Total deferred inflows of resources - - --13,868 6,831 2,063 -211,942 - Fund balance Nonspendable - - - - 4,345,118 2,140,132 258 - - - Restricted 450,134 49,247 288,145 84,487 - - - 5,157,946 1,659,028 1,253,781 Committed - - - - 1,561,202 757,993 1,810,874 - - - Assigned - - - - - - - - - - Unassigned - - ----- - -- Total fund balance 450,134 49,247 288,145 84,487 5,906,320 2,898,125 1,811,132 5,157,946 1,659,028 1,253,781 Total liabilities, deferred inflows and fund balance 450,774$ 51,012$ 290,540$ 86,359$ 5,920,188$ 2,904,956$ 1,814,892$ 5,367,471$ 2,176,937$ 1,253,781$ CITY OF COLLEGE STATION, TEXAS Combining Balance Sheet Nonmajor Governmental Funds September 30, 2014 Special Revenue 79 Parks Escrow Sidewalk Zones Drainage Projects Recreation Truancy Prevention Fee West Medical District Tax Increment Reinvestment Zone No. 18 East Medical District Tax increment Reinvestment Zone No. 19 Public, Educational and Governmental Access Channel Fee R.E. Meyer Estate Restricted Gift General Government Projects Parks & Recreation Projects Total Other Governmental Funds 3,747,313$ 50,105$ 2,625,849$ 82,693$ 7,515$ 66,363$ 916$ 203,592$ 102,684$ 6,088,568$ 7,466,452$ 30,909,425$ 499,670 6,620 346,923 10,925 993 8,768 121 26,898 13,566 804,411 1,254,654 4,356,479 - - 230,264 4,967 - - - - - - - 2,216,328 - - - - ------ -6,485,508 4,246,983$ 56,725$ 3,203,036$ 98,585$ 8,508$ 75,131$ 1,037$ 230,490$ 116,250$ 6,892,979$ 8,721,106$ 43,967,740$ 9,559$ -$ 36,392$ 64,340$ -$ -$ -$ 243$ -$ 112,417$ 72,748$ 603,892$ - - 19,690 22,293 - - - - - 3,771 - 56,874 23,319 - 3,441 - - - - - - - 3,190 234,498 - - -11,952 ------ -11,952 32,878 -59,523 98,585 ---243 -116,188 75,938 907,216 - - - - - - - - - - - 211,942 - - - - ------ -22,762 - - - - ------ -234,704 - - - - - - - - - - - 6,485,508 4,214,105 56,725 3,143,513 - 8,508 75,131 1,037 230,247 116,250 6,776,791 8,645,168 32,210,243 - - - - - - - - - - - 4,130,069 - - - - - - - - - - - - - - - - ------ -- 4,214,105 56,725 3,143,513 -8,508 75,131 1,037 230,247 116,250 6,776,791 8,645,168 42,825,820 4,246,983$ 56,725$ 3,203,036$ 98,585$ 8,508$ 75,131$ 1,037$ 230,490$ 116,250$ 6,892,979$ 8,721,106$ 43,967,740$ Capital Projects 80 Court Technology Fee Court Security Fee Juvenile Case Manager Police Seizure Memorial Cemetery Memorial Cemetery Endowment Texas Ave Cemetery Endowment Hotel Tax Community Development Wolf Pen Creek Tax Increment Financing District Revenues Other taxes -$ -$ -$ -$ -$ -$ -$ 4,966,077$ -$ -$ Licenses and permits - - - - - - - - - - Intergovernmental - - - 15,811 - - - - 2,733,940 - Charges for services - - - - 187,366 92,285 25,822 - - - Fines, forfeits, and penalties 64,082 48,057 80,004 - - - - - - - Investment income 1,299 186 906 265 4,673 2,127 5,358 17,623 - 3,734 Rents and royalties - - - - - - - - - - Contributions - - - - - - - - - - Other - - -- - 56 - -96,182 - Total revenues 65,381 48,243 80,910 16,076 192,039 94,468 31,180 4,983,700 2,830,122 3,734 Expenditures Current Fiscal services 47,777 70,138 104,756 - - - - - - - Police - - - 13,292 - - - - - - Planning and development svcs - - - - - - - - 1,965,787 - Public works - - - - - - - - - - Parks & recreation - - - - - - - 134,901 - - Information technology - - - - - - - - - - Contributions - - - - - - - 2,097,876 - - Other - - - - 122,174 60,175 (46) 140,001 - 1,732 Capital outlay - - -- - - - 3,439,582 692,632 - Total expenditures 47,777 70,138 104,756 13,292 122,174 60,175 (46) 5,812,360 2,658,419 1,732 Excess(deficit) of revenues over (under) expenditures 17,604 (21,895) (23,846) 2,784 69,865 34,293 31,226 (828,660) 171,703 2,002 Other financing sources (uses) Sale of capital assets - - - - - - - - - - Issuance of debt - - - - - - - - - - Premium on bonds issued - - - - - - - - - - Transfers in - - - - - - - - - - Transfers out - - - - (196,058) - - (492,993) (130,366) - Contingency - - -- - - - - -- Total other financing sources (uses)- - -- (196,058) - - (492,993) (130,366) - Net change in fund balance 17,604 (21,895) (23,846) 2,784 (126,193) 34,293 31,226 (1,321,653) 41,337 2,002 Fund balances , October 1 432,530 71,142 311,991 81,703 6,032,513 2,863,832 1,779,906 6,479,599 1,617,691 1,251,779 Fund balances, September 30 450,134$ 49,247$ 288,145$ 84,487$ 5,906,320$ 2,898,125$ 1,811,132$ 5,157,946$ 1,659,028$ 1,253,781$ CITY OF COLLEGE STATION, TEXAS Combining Statement of Revenues, Expenditures, and Changes in Fund Balance Nonmajor Governmental Funds September 30, 2014 Special Revenue 81 Parks Escrow Sidewalk Zones Drainage Projects Recreation Truancy Prevention Fee West Medical District Tax Increment Reinvestment Zone No. 18 East Medical District Tax Increment Reinvestment Zone No. 19 Public, Educational and Governmental Access Channel Fee R.E. Meyer Estate Restricted Gift General Government Projects Parks and Recreation Projects Total Other Governmental Funds -$ -$ -$ -$ -$ 75,131$ 1,037$ 85,563$ -$ -$ -$ 5,127,808$ - - - 13,484 - - - - - - - 13,484 - - - 7,000 - - - - - - 62,793 2,819,544 - - 2,060,912 760,689 - - - - - - - 3,127,074 - - - - - - - - - - - 192,143 11,623 165 8,856 - 9 - - 555 - 6,559 11,653 75,591 - - - 96,451 - - - - - - - 96,451 1,252,628 - - - - - - - - - - 1,252,628 197,624 1,870 -15,888 8,499 ---116,250 2,004 92,342 530,715 1,461,875 2,035 2,069,768 893,512 8,508 75,131 1,037 86,118 116,250 8,563 166,788 13,235,438 - - - - - - - - - 2,668 1,279 226,618 - - - - - - - - - - - 13,292 - - 100,136 - - - - - - - - 2,065,923 - - 1,020,846 - - - - - - - - 1,020,846 - - - 2,981,051 - - - - - - - 3,115,952 - - - - - - - - - 7,653 - 7,653 - - - - - - - - - - - 2,097,876 - - 79,715 - - - - 50,187 - - 3,800 457,738 526,873 -144,188 - - ---- 1,487,482 849,032 7,139,789 526,873 - 1,344,885 2,981,051 - --50,187 - 1,497,803 854,111 16,145,687 935,002 2,035 724,883 (2,087,539) 8,508 75,131 1,037 35,931 116,250 (1,489,240) (687,323) (2,910,249) - - - - - - - - - - - - - - - - - - - - - 4,983,760 5,174,440 10,158,200 - - - - - - - - - 621,240 405,560 1,026,800 - - - 2,236,821 - - - 266,573 - 952,500 400,000 3,855,894 (423,768) - (536,120) (149,282) - - - (72,257) - (275,661) (61,653) (2,338,158) - - - - - ---- - -- (423,768) -(536,120) 2,087,539 - --194,316 - 6,281,839 5,918,347 12,702,736 511,234 2,035 188,763 - 8,508 75,131 1,037 230,247 116,250 4,792,599 5,231,024 9,792,487 3,702,871 54,690 2,954,750 - - ---- 1,984,192 3,414,144 33,033,333 4,214,105$ 56,725$ 3,143,513$ -$ 8,508$ 75,131$ 1,037$ 230,247$ 116,250$ 6,776,791$ 8,645,168$ 42,825,820$ Capital Projects 82 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Fines, forfeits, and penalties 77,265$ 77,265$ 64,082$ -$ 64,082$ (13,183)$ Investment income 853 853 1,299 -1,299 446 Total revenues 78,118 78,118 65,381 -65,381 (12,737) Expenditures Fiscal services 79,707 79,707 47,777 -47,777 (31,930) Total expenditures 79,707 79,707 47,777 -47,777 (31,930) Excess(deficit) of revenues over (under) expenditures (1,589) (1,589) 17,604 -17,604 19,193 Other financing sources (uses) Transfers in - - - - - - Transfers out - - - - - - Total other financing sources (uses)- - - - - - Net change in fund balances (1,589) (1,589) 17,604 - 17,604 19,193 Fund balances, October 1 432,530 432,530 432,530 -432,530 - Fund balances, September 30 430,941$ 430,941$ 450,134$ -$ 450,134$ 19,193$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Court Technology Fee Fund For the Fiscal Year Ended September 30, 2014 83 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Fines, forfeits, and penalties 61,000$ 61,000$ 48,057$ -$ 48,057$ (12,943)$ Investment income 205 205 186 -186 (19) Total revenues 61,205 61,205 48,243 -48,243 (12,962) Expenditures Fiscal services 67,814 67,814 70,138 -70,138 2,324 Total expenditures 67,814 67,814 70,138 -70,138 2,324 Excess(deficit) of revenues over (under) expenditures (6,609) (6,609) (21,895) -(21,895) (15,286) Other financing sources (uses) Transfers in - - - - - - Transfers out - - - - - - Total other financing sources (uses)- - - - - - Net change in fund balances (6,609) (6,609) (21,895) - (21,895) (15,286) Fund balances, October 1 71,142 71,142 71,142 -71,142 - Fund balances, September 30 64,533$ 64,533$ 49,247$ -$ 49,247$ (15,286)$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Court Security Fee Fund For the Fiscal Year Ended September 30, 2014 84 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Fines, forfeits, and penalties 92,415$ 92,415$ 80,004$ -$ 80,004$ (12,411)$ Investment income 1,428 1,428 906 -906 (522) Total revenues 93,843 93,843 80,910 -80,910 (12,933) Expenditures Fiscal services 108,988 108,988 104,756 -104,756 (4,232) Total expenditures 108,988 108,988 104,756 -104,756 (4,232) Excess(deficit) of revenues over (under) expenditures (15,145) (15,145) (23,846) -(23,846) (8,701) Other financing sources (uses) Transfers in - - - - - - Transfers out - - - - - - Total other financing sources (uses)- - - - - - Net change in fund balances (15,145) (15,145) (23,846) - (23,846) (8,701) Fund balances, October 1 311,991 311,991 311,991 -311,991 - Fund balances, September 30 296,846$ 296,846$ 288,145$ -$ 288,145$ (8,701)$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Juvenile Case Manager Fee Fund For the Fiscal Year Ended September 30, 2014 85 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Intergovernmental 22,000$ 22,000$ 15,811$ -$ 15,811$ (6,189)$ Investment income 210 210 265 -265 55 Total revenues 22,210 22,210 16,076 -16,076 (6,134) Expenditures Police 40,000 40,000 13,292 -13,292 (26,708) Total expenditures 40,000 40,000 13,292 -13,292 (26,708) Excess(deficit) of revenues over (under) expenditures (17,790) (17,790) 2,784 -2,784 20,574 Other financing sources (uses) Transfers in - - - - - - Transfers out - - - - - - Total other financing sources (uses)- - - - - - Net change in fund balances (17,790) (17,790) 2,784 - 2,784 20,574 Fund balances, October 1 81,703 81,703 81,703 -81,703 - Fund balances, September 30 63,913$ 63,913$ 84,487$ -$ 84,487$ 20,574$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Police Seizure Fund For the Fiscal Year Ended September 30, 2014 86 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Other charges for services 298,853$ 298,853$ 187,366$ -$ 187,366$ (111,487)$ Investment income 5,000 5,000 4,673 -4,673 (327) Total revenues 303,853 303,853 192,039 -192,039 (111,814) Expenditures Other - -122,174 -122,174 122,174 Total expenditures - -122,174 -122,174 122,174 Excess(deficit) of revenues over (under) expenditures 303,853 303,853 69,865 -69,865 (233,988) Other financing sources (uses) Transfers in - - - - - - Transfers out (196,058) (196,058) (196,058) -(196,058) - Total other financing sources (uses) (196,058) (196,058) (196,058) -(196,058) - Net change in fund balances 107,795 107,795 (126,193) - (126,193) (233,988) Fund balances, October 1 6,032,513 6,032,513 6,032,513 -6,032,513 - Fund balances, September 30 6,140,308$ 6,140,308$ 5,906,320$ -$ 5,906,320$ (233,988)$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Memorial Cemetery Fund For the Fiscal Year Ended September 30, 2014 87 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Other charges for services 147,197$ 147,197$ 92,285$ -$ 92,285$ (54,912)$ Investment income 2,000 2,000 2,127 - 2,127 127 Other - -56 -56 56 Total revenues 149,197 149,197 94,468 -94,468 (54,729) Expenditures Parks & recreation 10,000 10,000 - - - (10,000) Other - -60,175 -60,175 60,175 Total expenditures 10,000 10,000 60,175 -60,175 50,175 Excess(deficit) of revenues over (under) expenditures 139,197 139,197 34,293 -34,293 (104,904) Other financing sources (uses) Transfers in - - - - - - Transfers out - - - - - - Total other financing sources (uses)- - - - - - Net change in fund balances 139,197 139,197 34,293 - 34,293 (104,904) Fund balances, October 1 2,863,832 2,863,832 2,863,832 -2,863,832 - Fund balances, September 30 3,003,029$ 3,003,029$ 2,898,125$ -$ 2,898,125$ (104,904)$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Memorial Cemetery Endowment Fund For the Fiscal Year Ended September 30, 2014 88 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Other charges for services 2,500$ 2,500$ 25,822$ -$ 25,822$ 23,322$ Investment income 4,000 4,000 5,358 -5,358 1,358 Total revenues 6,500 6,500 31,180 -31,180 24,680 Expenditures Other - -(46) -(46)(46) Total expenditures - -(46) -(46)(46) Excess(deficit) of revenues over (under) expenditures 6,500 6,500 31,226 -31,226 24,726 Other financing sources (uses) Transfers in - - - - - - Transfers out - - - - - - Total other financing sources (uses)- - - - - - Net change in fund balances 6,500 6,500 31,226 - 31,226 24,726 Fund balances, October 1 1,779,906 1,779,906 1,779,906 -1,779,906 - Fund balances, September 30 1,786,406$ 1,786,406$ 1,811,132$ -$ 1,811,132$ 24,726$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Texas Ave Cemetery Endowment Fund For the Fiscal Year Ended September 30, 2014 89 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Hotel occupancy tax 4,246,000$ 4,246,000$ 4,966,077$ -$ 4,966,077$ 720,077$ Investment income 11,500 11,500 17,623 -17,623 6,123 Total revenues 4,257,500 4,257,500 4,983,700 -4,983,700 726,200 Expenditures Fiscal services 45,000 45,000 - - - (45,000) Public works - - 134,901 - 134,901 134,901 Parks & recreation 219,000 219,000 - - - (219,000) Contributions 1,947,340 2,264,980 2,097,876 - 2,097,876 (167,104) Other 229,167 386,417 140,001 - 140,001 (246,416) Capital outlay - -3,439,582 -3,439,582 3,439,582 Total expenditures 2,440,507 2,915,397 5,812,360 -5,812,360 2,896,963 Excess(deficit) of revenues over (under) expenditures 1,816,993 1,342,103 (828,660) -(828,660) (2,170,763) Other financing sources (uses) Transfers in - - - - - - Transfers out (473,000) (473,000) (492,993) - (492,993) (19,993) Contingency (50,000) (50,000) - - -50,000 Total other financing sources (uses) (523,000) (523,000) (492,993) -(492,993) 30,007 Net change in fund balances 1,293,993 819,103 (1,321,653) - (1,321,653) (2,140,756) Fund balances, October 1 6,479,599 6,479,599 6,479,599 -6,479,599 - Fund balances, September 30 7,773,592$ 7,298,702$ 5,157,946$ -$ 5,157,946$ (2,140,756)$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Hotel Tax Fund For the Fiscal Year Ended September 30, 2014 90 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Intergovernmental 4,065,879$ 4,065,879$ 2,733,940$ -$ 2,733,940$ (1,331,939)$ Other 29,764 29,764 96,182 -96,182 66,418 Total revenues 4,095,643 4,095,643 2,830,122 -2,830,122 (1,265,521) Expenditures Planning and development services 2,305,240 2,305,240 1,965,787 - 1,965,787 (339,453) Other 857,867 857,867 692,632 -692,632 (165,235) Total expenditures 3,163,107 3,163,107 2,658,419 -2,658,419 (504,688) Excess(deficit) of revenues over (under) expenditures 932,536 932,536 171,703 -171,703 (760,833) Other financing sources (uses) Transfers in - - - - - - Transfers out (932,536) (932,536) (130,366) -(130,366) 802,170 Total other financing sources (uses)(932,536) (932,536) (130,366) -(130,366) 802,170 Net change in fund balances - - 41,337 - 41,337 41,337 Fund balances, October 1 1,617,691 1,617,691 1,617,691 -1,617,691 - Fund balances, September 30 1,617,691$ 1,617,691$ 1,659,028$ -$ 1,659,028$ 41,337$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Community Development Fund For the Fiscal Year Ended September 30, 2014 91 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Investment income 583$ 583$ 3,734$ -$ 3,734$ 3,151$ Total revenues 583 583 3,734 -3,734 3,151 Expenditures Other 1,235,044 1,235,044 1,732 -1,732 (1,233,312) Total expenditures 1,235,044 1,235,044 1,732 -1,732 (1,233,312) Excess(deficit) of revenues over (under) expenditures (1,234,461) (1,234,461) 2,002 -2,002 1,236,463 Other financing sources (uses) Transfers in - - - - - - Transfers out - - - - - - Total other financing sources (uses)- - - - - - Net change in fund balances (1,234,461) (1,234,461) 2,002 - 2,002 1,236,463 Fund balances, October 1 1,251,779 1,251,779 1,251,779 -1,251,779 - Fund balances, September 30 17,318$ 17,318$ 1,253,781$ -$ 1,253,781$ 1,236,463$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Wolf Pen Creek (WPC) TIF Fund For the Fiscal Year Ended September 30, 2014 92 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Investment income 10,000$ 10,000$ 11,623$ -$ 11,623$ 1,623$ Contributions 300,000 300,000 1,252,628 - 1,252,628 952,628 Other - -197,624 -197,624 197,624 Total revenues 310,000 310,000 1,461,875 -1,461,875 1,151,875 Expenditures Capital outlay 2,662,500 2,662,500 526,873 -526,873 (2,135,627) Total expenditures 2,662,500 2,662,500 526,873 -526,873 (2,135,627) Excess(deficit) of revenues over (under) expenditures (2,352,500) (2,352,500) 935,002 -935,002 3,287,502 Other financing sources (uses) Transfers in - - - - - - Transfers out (420,042) (420,042) (423,768) -(423,768) (3,726) Total other financing sources (uses) (420,042) (420,042) (423,768) -(423,768) (3,726) Net change in fund balances (2,772,542) (2,772,542) 511,234 - 511,234 3,283,776 Fund balances, October 1 3,702,871 3,702,871 3,702,871 -3,702,871 - Fund balances, September 30 930,329$ 930,329$ 4,214,105$ -$ 4,214,105$ 3,283,776$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Parks Escrow Fund For the Fiscal Year Ended September 30, 2014 93 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Other charges for services 2,047,200$ 2,047,200$ 2,060,912$ -$ 2,060,912$ 13,712$ Investment income 7,000 7,000 8,856 -8,856 1,856 Total revenues 2,054,200 2,054,200 2,069,768 -2,069,768 15,568 Expenditures Planning and development services 210,517 210,517 100,136 - 100,136 (110,381) Public works 1,028,017 1,028,017 1,020,846 - 1,020,846 (7,171) Other 455,250 455,250 223,903 -223,903 (231,347) Total expenditures 1,693,784 1,693,784 1,344,885 -1,344,885 (348,899) Excess(deficit) of revenues over (under) expenditures 360,416 360,416 724,883 -724,883 364,467 Other financing sources (uses) Miscellaneous (7,200) (7,200) - - - 7,200 Transfers in - - - - - - Transfers out (589,451) (589,451) (536,120) -(536,120) 53,331 Total other financing sources (uses) (596,651) (596,651) (536,120) -(536,120) 60,531 Net change in fund balances (236,235) (236,235) 188,763 - 188,763 424,998 Fund balances, October 1 2,954,750 2,954,750 2,954,750 -2,954,750 - Fund balances, September 30 2,718,515$ 2,718,515$ 3,143,513$ -$ 3,143,513$ 424,998$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Drainage Projects Fund For the Fiscal Year Ended September 30, 2014 94 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Licenses and permits 650$ 650$ 13,484$ -$ 13,484$ 12,834$ Intergovernmental 7,500 7,500 7,000 - 7,000 (500) Parks and rec charges for services 790,600 790,600 760,689 - 760,689 (29,911) Other charges for services 112,400 112,400 - - - (112,400) Rents and royalties 95,400 95,400 96,451 - 96,451 1,051 Contributions 6,200 6,200 - - - (6,200) Other 25,000 25,000 15,888 -15,888 (9,112) Total revenues 1,037,750 1,037,750 893,512 -893,512 (144,238) Expenditures Parks & recreation 3,104,028 3,104,028 2,981,051 -2,981,051 (122,977) Total expenditures 3,104,028 3,104,028 2,981,051 -2,981,051 (122,977) Excess(deficit) of revenues over (under) expenditures (2,066,278) (2,066,278) (2,087,539) -(2,087,539) (21,261) Other financing sources (uses) Transfers in 2,215,560 2,215,560 2,236,821 - 2,236,821 21,261 Transfers out (149,282) (149,282) (149,282) -(149,282) - Total other financing sources (uses) 2,066,278 2,066,278 2,087,539 -2,087,539 21,261 Net change in fund balances - - - - - - Fund balances, October 1 - - - - - - Fund balances, September 30 -$ -$ -$ -$ -$ -$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Recreation Fund For the Fiscal Year Ended September 30, 2014 95 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Property tax 73,652$ 73,652$ 75,131$ -$ 75,131$ 1,479$ Investment income 1,000 1,000 - - -(1,000) Total revenues 74,652 74,652 75,131 -75,131 479 Expenditures Other - - - - - - Total expenditures - - - - - - Excess(deficit) of revenues over (under) expenditures 74,652 74,652 75,131 -75,131 479 Other financing sources (uses) Transfers in - - - - - - Transfers out - - - - - - Total other financing sources (uses)- - - - - - Net change in fund balances 74,652 74,652 75,131 - 75,131 479 Fund balances, October 1 - - - - - - Fund balances, September 30 74,652$ 74,652$ 75,131$ -$ 75,131$ 479$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual West Medical District Tax Increment Reinvestment Zone No. 18 Fund For the Fiscal Year Ended September 30, 2014 96 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Property tax 1,037$ 1,037$ 1,037$ -$ 1,037$ -$ Investment income - - - - - - Total revenues 1,037 1,037 1,037 -1,037 - Expenditures Other - - - - - - Total expenditures - - - - - - Excess(deficit) of revenues over (under) expenditures 1,037 1,037 1,037 -1,037 - Other financing sources (uses) Transfers in - - - - - - Transfers out - - - - - - Total other financing sources (uses)- - - - - - Net change in fund balances 1,037 1,037 1,037 - 1,037 - Fund balances, October 1 - - - - - - Fund balances, September 30 1,037$ 1,037$ 1,037$ -$ 1,037$ -$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual East Medical District Tax Increment Reinvestment Zone No. 19 Fund For the Fiscal Year Ended September 30, 2014 97 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Franchise tax 44,000$ 44,000$ 85,563$ -$ 85,563$ 41,563$ Investment income 450 450 555 -555 105 Total revenues 44,450 44,450 86,118 -86,118 41,668 Expenditures Other 65,120 65,120 50,187 -50,187 (14,933) Total expenditures 65,120 65,120 50,187 -50,187 (14,933) Excess(deficit) of revenues over (under) expenditures (20,670) (20,670) 35,931 -35,931 56,601 Other financing sources (uses) Transfers in 233,840 233,840 266,573 - 266,573 32,733 Transfers out (49,263) (72,257) (72,257) -(72,257) - Total other financing sources (uses)184,577 161,583 194,316 -194,316 32,733 Net change in fund balances 163,907 140,913 230,247 - 230,247 89,334 Fund balances, October 1 - - - - - - Fund balances, September 30 163,907$ 140,913$ 230,247$ -$ 230,247$ 89,334$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Public, Educational and Governmental Access Channel Fee Fund For the Fiscal Year Ended September 30, 2014 98 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Investment income 7,000$ 7,000$ 6,559$ -$ 6,559$ (441)$ Other - -2,004 -2,004 2,004 Total revenues 7,000 7,000 8,563 -8,563 1,563 Expenditures Fiscal services 15,000 15,000 2,668 - 2,668 (12,332) Information technology - - 7,653 - 7,653 7,653 Other 6,912,000 6,912,000 1,487,482 -1,487,482 (5,424,518) Total expenditures 6,927,000 6,927,000 1,497,803 -1,497,803 (5,429,197) Excess(deficit) of revenues over (under) expenditures (6,920,000) (6,920,000) (1,489,240) -(1,489,240) 5,430,760 Other financing sources (uses) Issuance of debt 2,654,500 2,654,500 5,605,000 - 5,605,000 2,950,500 Transfers in 952,500 952,500 952,500 - 952,500 - Transfers out (85,287) (255,287) (275,661) -(275,661) (20,374) Total other financing sources (uses) 3,521,713 3,351,713 6,281,839 -6,281,839 2,930,126 Net change in fund balances (3,398,287) (3,568,287) 4,792,599 - 4,792,599 8,360,886 Fund balances, October 1 1,984,192 1,984,192 1,984,192 -1,984,192 - Fund balances, September 30 (1,414,095)$ (1,584,095)$ 6,776,791$ -$ 6,776,791$ 8,360,886$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual General Government Projects Fund For the Fiscal Year Ended September 30, 2014 99 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Intergovernmental -$ -$ 62,793$ -$ 62,793$ 62,793$ Investment income 5,000 5,000 11,653 - 11,653 6,653 Other 78,000 78,000 92,342 -92,342 14,342 Total revenues 83,000 83,000 166,788 -166,788 83,788 Expenditures Fiscal services - - 1,279 - 1,279 1,279 Other 1,165,500 1,165,500 852,832 -852,832 (312,668) Total expenditures 1,165,500 1,165,500 854,111 -854,111 (311,389) Excess(deficit) of revenues over (under) expenditures (1,082,500) (1,082,500) (687,323) -(687,323) 395,177 Other financing sources (uses) Issuance of debt 2,715,000 2,715,000 5,580,000 - 5,580,000 2,865,000 Transfers in 400,000 400,000 400,000 - 400,000 - Transfers out (32,700) (32,700) (61,653) -(61,653) (28,953) Total other financing sources (uses) 3,082,300 3,082,300 5,918,347 -5,918,347 2,836,047 Net change in fund balances 1,999,800 1,999,800 5,231,024 - 5,231,024 3,231,224 Fund balances, October 1 3,414,144 3,414,144 3,414,144 -3,414,144 - Fund balances, September 30 5,413,944$ 5,413,944$ 8,645,168$ -$ 8,645,168$ 3,231,224$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Parks and Recreation Projects Fund For the Fiscal Year Ended September 30, 2014 100 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Ad valorem taxes 12,041,492$ 12,041,492$ 11,938,869$ -$ 11,938,869$ (102,623)$ Investment income 25,034 25,034 14,326 - 14,326 (10,708) Other - -917 -917 917 Total revenues 12,066,526 12,066,526 11,954,112 -11,954,112 (112,414) Expenditures Debt service principal 8,650,000 8,650,000 8,650,000 - 8,650,000 - Debt service interest 3,699,455 3,699,455 3,707,799 - 3,707,799 8,344 Fiscal charges 50,000 50,000 39,719 -39,719 (10,281) Total expenditures 12,399,455 12,399,455 12,397,518 -12,397,518 (1,937) Excess(deficit) of revenues over (under) expenditures (332,929) (332,929) (443,406) -(443,406) (110,477) Other financing sources (uses) Advance refunding - - (9,755,695) - (9,755,695) (9,755,695) Issuance of debt - - 8,535,000 - 8,535,000 8,535,000 Premium on bonds issued - - 1,249,222 - 1,249,222 1,249,222 Transfers in 196,058 196,058 196,058 - 196,058 - Transfers out - - - - - - Total other financing sources (uses)196,058 196,058 224,585 -224,585 28,527 Net change in fund balances (136,871) (136,871) (218,821) - (218,821) (81,950) Fund balances, October 1 3,433,255 3,433,255 3,433,255 -3,433,255 - Fund balances, September 30 3,296,384$ 3,296,384$ 3,214,434$ -$ 3,214,434$ (81,950)$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Debt Service Fund For the Fiscal Year Ended September 30, 2014 101 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Intergovernmental -$ -$ 225,670$ -$ 225,670$ 225,670$ Other charges for services 187,020 187,020 121,679 - 121,679 (65,341) Investment income 25,000 25,000 39,682 - 39,682 14,682 Other 100,000 100,000 29,005 -29,005 (70,995) Total revenues 312,020 312,020 416,036 -416,036 104,016 Expenditures Fiscal services - - 4,058 - 4,058 4,058 Other - 229,626 - - - (229,626) Capital outlay 10,547,051 10,912,077 5,496,545 - 5,496,545 (5,415,532) Fiscal charges 40,000 40,000 - - - (40,000) Intergovernmental 107,333 171,203 489,817 -489,817 318,614 Total expenditures 10,694,384 11,352,906 5,990,420 -5,990,420 (5,362,486) Excess(deficit) of revenues over (under) expenditures (10,382,364) (11,040,886) (5,574,384) -(5,574,384) 5,466,502 Other financing sources (uses) Issuance of debt 8,780,000 8,780,000 13,201,800 - 13,201,800 4,421,800 Premium on bonds issued - - 1,348,200 - 1,348,200 1,348,200 Transfers in 1,735,339 2,393,861 1,588,163 - 1,588,163 (805,698) Transfers out (359,428) (359,428) (531,890) -(531,890) (172,462) Total other financing sources (uses) 10,155,911 10,814,433 15,606,273 -15,606,273 4,791,840 Net change in fund balances (226,453) (226,453) 10,031,889 - 10,031,889 10,258,342 Fund balances, October 1 13,537,316 13,537,316 13,537,316 -13,537,316 - Fund balances, September 30 13,310,863$ 13,310,863$ 23,569,205$ -$ 23,569,205$ 10,258,342$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Streets Projects Fund For the Fiscal Year Ended September 30, 2014 102 COMBINING FINANCIAL STATEMENTS NONMAJOR ENTERPRISE FUNDS Sanitation Fund - account for all sanitation collection and disposal activities by the City for both residential and commercial customers. Northgate Parking Garage Fund - account for revenues and expenses related to the operation and maintenance of the Northgate parking garage and parking lot. 103 Sanitation Northgate Parking Garage Total Nonmajor Enterprise Funds Assets Current assets Cash and cash equivalents 236,356$ 1,007,681$ 1,244,037$ Equity in investments 31,227 133,133 164,360 Receivable (net of allow for uncollectible)925,763 50 925,813 Inventories 5,641 -5,641 Total current assets 1,198,987 1,140,864 2,339,851 Noncurrent assets Equity in joint venture 12,909,486 - 12,909,486 Loan receivable 4,100,000 - 4,100,000 Bond issuance charges -55,888 55,888 17,009,486 55,888 17,065,374 Capital assets Buildings - 5,737,679 5,737,679 Machinery and equipment 5,667,166 691,729 6,358,895 Less accumulated depreciation (2,458,773) (2,323,650) (4,782,423) Construction in progress - 9,400 9,400 Land -690,750 690,750 Total capital assets 3,208,393 4,805,908 8,014,301 Total noncurrent assets 20,217,879 4,861,796 25,079,675 Total assets 21,416,866 6,002,660 27,419,526 Liabilities Current Liabilities Accounts payable 327,057 45,044 372,101 Compensated absences 8,553 444 8,997 Accrued liabilities 89,375 19,844 109,219 Unearned revenue-other - 141,963 141,963 Accrued interest payable 18,654 7,822 26,476 Refundable deposits - 4,200 4,200 Certificates of obligation 240,000 - 240,000 General obligation bonds -413,174 413,174 Total current liabilities 683,639 632,491 1,316,130 Noncurrent liabilities Certificates of obligation 3,860,000 - 3,860,000 General obligation bonds - 1,507,696 1,507,696 Compensated absences 101,570 5,271 106,841 Post employment benefits 295,582 29,138 324,720 Net pension obligation 237,182 23,046 260,228 Total noncurrent liabilites 4,494,334 1,565,151 6,059,485 Total liabilities 5,177,973 2,197,642 7,375,615 Net position Net investment in capital assets 3,208,393 2,885,037 6,093,430 Restricted For: Debt Service - - - Unrestricted 13,030,500 919,981 13,950,481 Total net position 16,238,893$ 3,805,018$ 20,043,911$ CITY OF COLLEGE STATION, TEXAS Combining Statement of Net Position Nonmajor Enterprise Funds September 30, 2014 104 Sanitation Northgate Parking Garage Total Nonmajor Enterprise Funds Operating revenues Charges for services 8,004,680$ 1,292,782$ 9,297,462$ Other 9,775 1,332 11,107 Total operating revenues 8,014,455 1,294,114 9,308,569 Operating expenses Salaries and benefits 2,192,241 287,094 2,479,335 Supplies 633,584 26,210 659,794 Maintenance 604,906 90,141 695,047 Purchased professional services 703,532 157,737 861,269 Purchased property services 1,663,328 63,570 1,726,898 Other purchased services 856,751 88,117 944,868 Depreciation 563,739 258,798 822,537 Other 29,353 (52) 29,301 Total operating expenses 7,247,434 971,615 8,219,049 Operating income 767,021 322,499 1,089,520 Nonoperating revenues (expenses) Investment income 855 2,718 3,573 Gain (loss) on disposal of assets 173 (3,708) (3,535) Earnings in joint venture 291,366 - 291,366 Interest expense - (78,344) (78,344) Debt issuance costs - (353) (353) Other, net (188,421) 7,628 (180,793) Total nonoperating revenues (expenses)103,973 (72,059) 31,914 Income before capital contributions and transfers 870,994 250,440 1,121,434 Capital contributions and transfers Capital contributions 1,747,963 - 1,747,963 Transfers in 213,982 193,001 406,983 Transfers out (1,271,494) (88,516) (1,360,010) Total capital contributions and transfers 690,451 104,485 794,936 Change in net position 1,561,445 354,925 1,916,370 Net position - beginning 14,677,448 3,450,093 18,127,541 Net position - ending 16,238,893$ 3,805,018$ 20,043,911$ CITY OF COLLEGE STATION, TEXAS Combining Statement of Revenues, Expenses and Changes in Net Position Nonmajor Enterprise Funds For the Fiscal Year Ended September 30, 2014 105 Total Northgate Nonmajor Parking Enterprise Sanitation Garage Funds Cash flows from operating activities: Cash received from customers 7,897,840$ 1,350,519$ 9,248,359$ Cash payments to suppliers for goods and services (4,459,297) (432,300) (4,891,597) Cash payments to employees for services (2,119,981) (278,566) (2,398,547) Cash paid for miscellaneous services (188,421) (353) (188,774) Cash received for miscellaneous revenues -7,628 7,628 Net cash provided (used) by operating activities 1,130,141 646,928 1,777,069 Cash flows from noncapital financing activities: Transfers in from other funds 213,982 193,001 406,983 Transfers out to other funds (1,271,494) (88,516) (1,360,010) Net cash provided (used) by noncapital financing activities (1,057,512) 104,485 (953,027) Cash flows from capital and related financing activities: Acquisition and construction of capital assets (1,747,790) 456 (1,747,334) Capital grants and contributions 1,747,963 - 1,747,963 Principal paid on certificates of obligation and general obligation bonds - (386,996) (386,996) Interest paid on certificates of obligation and general obligation bonds 1,852 (78,639) (76,787) Net cash provided (used) by capital and related financing activities 2,025 (465,179) (463,154) Cash flows from investing activities: Purchase of investments (73,867) (315,742) (389,609) Proceeds from sale and maturities of investment securities 65,055 282,020 347,075 Investment income 855 2,718 3,573 Net cash provided (used) by investing activities (7,957) (31,004) (38,961) Net increase (decrease) in cash and cash equivalents 66,697 255,230 321,927 Cash and cash equivalents, Oct. 1 169,659 752,451 922,110 Cash and cash equivalents, Sept. 30 236,356$ 1,007,681$ 1,244,037$ Reconciliation of operating income to net cash Provided by operating activities: Operating income 767,021$ 322,499$ 1,089,520$ Adjustment to reconcile operating income to net cash provided (used) by operating activities: Depreciation, bad debt expense, inventory loss 563,739 258,798 822,537 Miscellaneous nonoperating revenues - 7,628 7,628 Miscellaneous nonoperating expenses (188,421) (353) (188,774) Changes in assets and liabilities: Change in accounts receivable (116,615) (50) (116,665) Change in inventory 9,399 - 9,399 Change in accounts payable 19,805 (5,345) 14,460 Change in accrued liabilities 5,608 35 5,643 Change in deferred revenue - 56,455 56,455 Change in accrued vacation 13,658 1,349 15,007 Change in OPEB 40,907 4,323 45,230 Change in net pension obligation 15,040 1,589 16,629 Total adjustments 363,120 324,429 687,549 Net cash provided (used) by operating activities 1,130,141$ 646,928$ 1,777,069$ CITY OF COLLEGE STATION, TEXAS Combining Statement of Cash Flows Nonmajor Enterprise Funds For the Fiscal Year Ended September 30, 2014 106 COMBINING FINANCIAL STATEMENTS INTERNAL SERVICE FUNDS Employee Benefits Fund - to account for self-insurance activity related to administration of the City's health benefits plan. Equipment Replacement Fund - to account for the purchase of City equipment such as vehicles and large motorized equipment, telephone and radio systems, and replacement assets for existing technological infrastructure equipment not budgeted in other funds. Fleet Maintenance Fund - to account for all activities related to the management of the City’s vehicles and heavy equipment, including preventive maintenance and vehicle repair activities. Property and Casualty Fund - 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 Fund - to account for self-insurance activity on claims filed under unemployment compensation laws. Utility Customer Service Fund - to account for the billing and collection activities relating to the City’s electric, water, and sewer utilities and residential and commercial garbage collection. W orkers' Compensation Fund - to account for self-insurance activity relating to administration of the City's workers' compensation plan. 107 Employee Benefits Equipment Replacement Fleet Maintenance Property and Casualty Unemployment Utility Customer Service Workers' Compensation Total Internal Service Funds Assets Current assets Cash and cash equivalents 7,939,436$ 6,435,625$ 119,582$ 1,530,966$ 341,887$ 280,705$ 2,127,967$ 18,776,168$ Equity in investments 1,048,944 850,263 15,799 202,268 45,169 37,086 281,143 2,480,672 Receivable (net of allow for uncollectible)4,818 - - 22,435 - 14,507 3,674 45,434 Inventories - -115,581 - - - -115,581 Total current assets 8,993,198 7,285,888 250,962 1,755,669 387,056 332,298 2,412,784 21,417,855 Capital assets Buildings - - 786,525 - - 37,133 - 823,658 Machinery and equipment - 20,868,620 345,600 - - 722,117 - 21,936,337 Less accumulated depreciation -(13,603,355) (682,044) - -(513,619) -(14,799,018) Total capital assets -7,265,265 450,081 - -245,631 -7,960,977 Total assets 8,993,198 14,551,153 701,043 1,755,669 387,056 577,929 2,412,784 29,378,832 Liabilities Current liabilities Accounts payable 316,493 158,496 98,449 16,546 - 13,174 2,590 605,748 Accrued liabilities 1,507 - 21,322 2,112 - 30,973 2,112 58,026 Compensated absences - - 4,446 - - 3,877 - 8,323 Claims payable 1,172,446 - -194,012 - -284,178 1,650,636 Total current liabilities 1,490,446 158,496 124,217 212,670 -48,024 288,880 2,322,733 Noncurrent liabilities Compensated absences - - 52,801 - - 46,043 - 98,844 Post employment benefits 10,871 - 129,230 14,837 - 204,219 14,811 373,968 Net pension obligation 8,997 -103,881 12,330 -165,070 12,304 302,582 Total noncurrent liabilites 19,868 -285,912 27,167 -415,332 27,115 775,394 Total liabilities 1,510,314 158,496 410,129 239,837 -463,356 315,995 3,098,127 Net position Net investment in capital assets - 7,265,265 450,081 - - 245,631 - 7,960,977 Unrestricted 7,482,884 7,127,392 (159,167) 1,515,832 387,056 (131,058) 2,096,789 18,319,728 Total net position 7,482,884$ 14,392,657$ 290,914$ 1,515,832$ 387,056$ 114,573$ 2,096,789$ 26,280,705$ CITY OF COLLEGE STATION, TEXAS Combining Statement of Net Position Internal Service Funds September 30, 2014 108 Employee Benefits Equipment Replacement Fleet Maintenance Property and Casualty Unemployment Utility Customer Service Workers' Compensation Total Internal Service Funds Operating revenues Charges for services -$ 3,527,286$ 2,009,977$ -$ -$ 2,052,233$ -$ 7,589,496$ Premiums 8,849,256 - - 1,039,410 29,305 - 495,516 10,413,487 Other 23,007 -333 217,603 -129,973 100 371,016 Total operating revenues 8,872,263 3,527,286 2,010,310 1,257,013 29,305 2,182,206 495,616 18,373,999 Operating expenses Salaries and benefits 36,675 - 901,300 88,349 - 1,304,365 88,347 2,419,036 Supplies - - 954,320 - - 62,729 - 1,017,049 Maintenance - - 15,820 - - 23,612 - 39,432 Purchased professional services 49,451 - 25,240 10,900 - 77,579 10,900 174,070 Purchased property services - - 18,045 - - 41,615 - 59,660 Other purchased services - - 61,052 - - 667,747 - 728,799 Claims 6,773,510 - - 174,806 13,428 - 285,450 7,247,194 Administration fees 464,990 - - 84,726 - - 23,044 572,760 Contributions - 2,690,290 - - - - - 2,690,290 Premiums 1,009,226 - - 261,883 - - 162,484 1,433,593 Depreciation - 1,796,846 35,713 - - 47,803 - 1,880,362 Other 34,799 -5,939 5,631 -7,302 -53,671 Total operating expenses 8,368,651 4,487,136 2,017,429 626,295 13,428 2,232,752 570,225 18,315,916 Operating income 503,612 (959,850) (7,119) 630,718 15,877 (50,546) (74,609) 58,083 Nonoperating revenues (expenses) Investment income 25,129 24,304 345 4,274 1,128 863 7,041 63,084 Gain (loss) on disposal of assets - 156,048 - - - - - 156,048 Other, net (2,731) (145,106) (519) (11,153) - - -(159,509) Total nonoperating revenues (expenses)22,398 35,246 (174) (6,879) 1,128 863 7,041 59,623 Income before capital contributions and transfers 526,010 (924,604) (7,293) 623,839 17,005 (49,683) (67,568) 117,706 Capital contributions and transfers Capital contributions - - - - - - - - Transfers in - - - - - - - - Transfers out (73,450) (475,000) - - - - -(548,450) Total capital contributions and transfers (73,450) (475,000) - - - - -(548,450) Change in net position 452,560 (1,399,604) (7,293) 623,839 17,005 (49,683) (67,568) (430,744) Net position-beginning 7,030,324 15,792,261 298,207 891,993 370,051 164,256 2,164,357 26,711,449 Net position-ending 7,482,884$ 14,392,657$ 290,914$ 1,515,832$ 387,056$ 114,573$ 2,096,789$ 26,280,705$ CITY OF COLLEGE STATION, TEXAS Combining Statement of Revenues, Expenses and Changes in Net Position Internal Service Fund For the Fiscal Year Ended September 30, 2014 109 Total Internal Employee Equipment Fleet Property and Utility Customer Workers' Service Benefits Replacement Maintenance Casualty Unemployment Service Compensation Funds Cash Flows from operating activities: Cash received from customers 8,871,465$ 3,527,286$ 2,010,310$ 1,234,578$ 29,305$ 2,190,043$ 494,442$ 18,357,429$ Cash payments to suppliers for goods and services (8,090,953) (2,578,921) (1,090,323) (762,227) (21,353) (887,201) (457,006) (13,887,984) Cash payments to employees for services (34,196) - (877,445) (85,644) - (1,274,589) (86,468) (2,358,342) Cash paid for miscellaneous services (2,731) (145,106) (519) (11,153) ---(159,509) Net cash provided (used) by operating activities 743,585 803,259 42,023 375,554 7,952 28,253 (49,032) 1,951,594 Cash flows from noncapital financing activities: Transfers out to other funds (73,450) (475,000) -----(548,450) Net cash provided (used) by noncapital financing activities (73,450) (475,000) -----(548,450) Cash flows from capital and related financing activities: Acquisition and construction of capital assets - (1,637,428) (68,625) - - - - (1,706,053) Proceeds from sale of assets -156,048 -----156,048 Net cash provided (used) by capital and related financing activities - (1,481,380) (68,625) ---- (1,550,005) Cash flows from investing activities: Purchase of investments (2,526,971) (2,090,358) (38,973) (481,174) (109,333) (89,231) (682,960) (6,019,000) Proceeds from sale and maturities of investment securities 2,445,834 2,222,091 42,037 436,848 108,274 85,833 687,860 6,028,777 Investment income 25,129 24,304 345 4,274 1,128 863 7,041 63,084 Net cash provided (used) by investing activities (56,008) 156,037 3,409 (40,052) 69 (2,535) 11,941 72,861 Net increase (decrease) in cash and cash equivalents 614,127 (997,084) (23,193) 335,502 8,021 25,718 (37,091) (74,000) Cash and cash equivalents, Oct. 1 7,325,309 7,432,709 142,775 1,195,464 333,866 254,987 2,165,058 18,850,168 Cash and cash equivalents, Sept. 30 7,939,436$ 6,435,625$ 119,582$ 1,530,966$ 341,887$ 280,705$ 2,127,967$ 18,776,168$ Reconciliation of operating income to net cash provided by operating activities: Operating income 503,612$ (959,850)$ (7,119)$ 630,718$ 15,877$ (50,546)$ (74,609)$ 58,083$ Adjustment to reconcile operating income to net Cash provided (used) by operating activities: Depreciation, bad debt expense, inventory loss - 1,796,846 35,713 - - 47,803 - 1,880,362 Miscellaneous nonoperating expenses (2,731) (145,106) (519) (11,153) - - - (159,509) Changes in assets and liabilities: Change in accounts receivable (798) - - (22,435) - 7,837 (1,174) (16,570) Change in inventory - - (18,971) - - - - (18,971) Change in accounts payable 28,300 111,369 9,029 7,165 (7,925) (6,086) (2,940) 138,912 Change in claims payable 212,723 - - (231,446) - - 27,812 9,089 Change in accrued liabilities 1,507 - 1,869 282 - 4,296 (544) 7,410 Change in accrued vacation - - (1,302) - - (8,024) - (9,326) Change in OPEB 711 - 17,054 1,772 - 24,109 1,772 45,418 Change in net pension obligation 261 -6,269 651 -8,864 651 16,696 Total adjustments 239,973 1,763,109 49,142 (255,164) (7,925) 78,799 25,577 1,893,511 Net cash provided (used) by operating activities 743,585$ 803,259$ 42,023$ 375,554$ 7,952$ 28,253$ (49,032)$ 1,951,594$ CITY OF COLLEGE STATION, TEXAS Combining Statement of Cash Flows Internal Service Funds For the Fiscal Year Ended September 30, 2014 110 STATISTICAL SECTION - UNAUDITED This section of the City of College Station’s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial condition. Financial Trends These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time. (Pages 112-118) Revenue Capacity These schedules contain information to help the reader assess the factors affecting the City’s ability to generate its property and sales taxes. (Pages 119-126) Debt Capacity These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future. (Pages 127-131) Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place and to help make comparisons over time and with other governments. (Pages 132-137) Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. The City implemented GASB Statement 34 in 2003; schedules presenting government-wide information include information beginning in that year. The City implemented GASB Statement 54 in 2009; schedules presenting governmental fund balance reclassifications begin in that year. 111 2005200620072008200920102011201220132014Governmental activities Net investment in capital assets105,859,949$ 108,287,795$ 113,750,039$ 114,935,845$ 143,530,290$ 153,397,767$ 145,546,799$ 149,875,513$ 153,214,549$ 125,012,201$ Restricted4,289,531 4,564,184 5,089,422 6,357,013 8,077,876 10,201,722 25,565,107 13,606,487 16,751,846 15,608,417 Unrestricted27,897,090 39,602,065 45,967,901 59,703,654 37,712,097 37,359,741 27,695,418 39,065,396 40,964,678 76,502,627 Total governmental activities net postion 138,046,570$ 152,454,044$ 164,807,362$ 180,996,512$ 189,320,263$ 200,959,230$ 198,807,324$ 202,547,396$ 210,931,073$ 217,123,245$ Business-type activities Net investment in capital assets 132,001,489$ 142,778,246$ 147,043,092$ 145,066,758$ 147,627,129$ 161,365,075$ 175,059,669$ 179,123,899$ 189,315,182$ 165,180,775$ Restricted 2,797,735 2,920,980 3,056,356 1,590,977 3,119,691 1,588,631 1,588,631 1,580,992 1,580,992 1,580,992 Unrestricted 30,830,640 32,980,043 37,474,945 43,957,844 47,397,414 38,818,705 35,213,377 38,597,823 36,847,830 61,775,551 Total business-type activities net postion 165,629,864$ 178,679,269$ 187,574,393$ 190,615,579$ 198,144,234$ 201,772,411$ 211,861,677$ 219,302,714$ 227,744,004$ 228,537,318$ Primary government Net investment in capital assets 237,861,438$ 251,066,041$ 260,793,131$ 260,002,603$ 291,157,419$ 314,762,842$ 320,606,468$ 328,999,412$ 342,529,731$ 290,192,976$ Restricted 7,087,266 7,485,164 8,145,778 7,947,990 11,197,567 11,790,353 27,153,738 15,187,479 18,332,838 17,189,409 Unrestricted 58,727,730 72,582,108 83,442,846 103,661,498 85,109,511 76,178,446 62,908,795 77,663,219 77,812,508 138,278,178 Total primary government net position 303,676,434$ 331,133,313$ 352,381,755$ 371,612,091$ 387,464,497$ 402,731,641$ 410,669,001$ 421,850,110$ 438,675,077$ 445,660,563$ Source: City of College StationCITY OF COLLEGE STATION, TEXASNET POSITION BY COMPONENTLAST TEN FISCAL YEARS(accrual basis of accounting)Fiscal Year112 2005200620072008200920102011201220132014ExpensesGovernmental activities:General government6,457,556$ 7,755,725$ 7,654,393$ 8,551,304$ 8,631,908$ 11,534,705$ 9,455,960$ 8,348,922$ 9,167,476$ 9,602,139$ Fiscal services2,467,187 2,452,442 2,442,439 2,977,362 3,821,996 4,127,990 3,384,388 3,313,726 3,263,269 3,419,923 Police10,666,318 11,214,413 12,299,698 13,395,874 13,945,079 16,063,347 15,082,452 16,696,975 16,831,233 17,768,724 Fire7,853,876 8,280,257 9,472,331 11,359,260 11,778,585 13,301,029 11,749,054 13,706,222 13,748,434 14,245,690 Planning and development services1,580,317 1,449,327 1,603,963 1,910,359 2,823,296 2,952,177 3,364,877 4,912,517 4,334,608 5,012,992 Public works5,401,568 6,227,707 6,620,846 9,467,081 16,804,436 17,026,827 20,629,662 13,717,564 15,371,773 21,348,088 Capital projects- - - 719,391 476,462 256,177 648,589 819,296 733,974 731,621 Parks and recreation6,549,466 7,353,984 8,235,984 9,391,993 10,136,521 11,202,863 10,146,043 9,638,581 8,983,919 9,197,308 Library- 870,203 912,527 993,102 1,052,838 1,103,864 1,130,433 1,142,580 1,064,293 1,149,616 Information services2,881,863 2,280,393 2,689,720 2,749,327 3,471,714 5,048,720 4,165,064 4,268,524 4,565,385 4,663,939 Interest on long-term debt3,895,520 4,116,871 4,291,022 3,860,801 4,135,146 4,111,523 4,079,379 3,273,938 2,949,240 3,962,347 Unallocated depreciation5,430,745 5,759,049 6,026,372 667,890 789,074 1,047,906 1,130,283 1,149,609 1,146,119 1,161,675 Total governmental activities expense53,184,416 57,760,371 62,249,295 66,043,744 77,867,055 87,777,128 84,966,184 80,988,454 82,159,723 92,264,062 Business-type activities:Electric47,815,339 51,250,110 60,242,408 70,485,984 77,441,351 88,685,699 93,277,853 87,221,859 88,438,115 98,269,576 Water7,908,695 7,770,081 8,302,863 8,706,415 9,287,343 10,190,159 9,960,837 11,132,787 11,662,862 11,517,915 Wastewater7,262,208 7,973,677 8,179,813 9,159,176 9,829,813 10,604,983 10,114,867 10,952,853 11,370,918 11,205,770 Sanitation4,931,079 5,421,624 5,916,431 6,244,639 5,776,002 6,527,724 6,558,278 7,825,491 6,301,053 7,497,493 Northgate parking591,944 621,593 591,980 668,237 909,167 1,019,393 944,125 924,532 1,053,839 1,051,901 Total business-type activities expense68,509,265 73,037,085 83,233,495 95,264,451 103,243,676 117,027,958 120,855,960 118,057,522 118,826,787 129,542,655 Total primary government expense121,693,681$ 130,797,456$ 145,482,790$ 161,308,195$ 181,110,731$ 204,805,086$ 205,822,144$ 199,045,976$ 200,986,510$ 221,806,717$ Program revenuesGovernmental activities:Charges for services:Fines, forfeits and penalties4,008,637$ 3,798,807$ 3,618,236$ 3,798,313$ 4,491,960$ 4,500,447$ 4,120,077$ 3,896,477$ 3,462,197$ 3,231,069$ Licenses and permits1,043,672 1,091,848 1,306,690 1,154,902 1,007,151 964,344 1,091,983 1,496,989 1,240,300 1,438,082 Public works1,110,686 1,290,935 1,199,565 1,255,525 1,793,174 1,895,263 2,910,293 2,480,140 2,489,828 2,437,986 Parks and recreation1,044,134 1,244,476 1,420,284 1,911,789 1,838,810 1,722,840 2,007,032 1,909,008 1,773,554 1,608,329 Other activities2,002,338 2,656,136 3,210,563 3,548,309 4,494,627 3,378,603 2,516,446 2,506,187 2,903,460 3,532,847 Operating grants and contributions2,629,494 3,144,254 2,038,535 1,735,170 1,896,623 1,694,228 1,875,849 2,766,187 1,753,970 3,234,317 Capital grants and contributions4,489,883 7,477,874 5,271,090 3,055,501 2,644,629 19,587,921 3,964,442 4,216,095 7,016,449 7,404,520 Total governmental activities program revenues16,328,844 20,704,330 18,064,963 16,459,509 18,166,974 33,743,646 18,486,122 19,271,083 20,639,758 22,887,150 Business-type activities:Charges for services:Electric sales 51,467,169 60,217,421 67,462,075 76,787,412 82,904,777 91,162,890 101,617,743 96,787,784 95,737,007 97,814,129 Water sales9,519,714 10,852,660 10,060,398 12,025,086 17,312,431 12,745,173 17,253,787 15,274,883 15,775,334 13,848,402 Sewer service9,697,314 10,363,603 10,590,688 11,184,565 11,655,528 11,522,025 13,099,783 13,697,532 14,566,975 14,575,907 Garbage collection fees5,151,204 6,419,446 7,512,194 9,628,798 7,988,795 7,299,273 7,143,536 7,204,013 7,205,029 8,014,628 Parking garage fees480,627 576,892 620,124 673,818 990,735 1,140,833 1,189,443 1,149,277 1,234,799 1,298,034 Other activities- - - - - - - - - - Operating grants and contributions- - - - 17,792 - 3,746 9,718 982 291,366 Capital grants and contributions1,937,320 4,677,465 4,041,105 5,349,125 6,846,033 11,703,025 3,857,585 6,890,916 5,345,176 7,309,230 Total business-type activities program revenues78,253,348 93,107,487 100,286,584 115,648,804 127,716,091 135,573,219 144,165,623 141,014,123 139,865,302 143,151,696 Total primary government program revenues94,582,192$ 113,811,817$ 118,351,547$ 132,108,313$ 145,883,065$ 169,316,865$ 162,651,745$ 160,285,206$ 160,505,060$ 166,038,846$ Fiscal YearCITY OF COLLEGE STATION, TEXASCHANGES IN NET POSITIONLAST TEN FISCAL YEARS(accrual basis of accounting)113 2005200620072008200920102011201220132014Net (Expense)/RevenueGovernmental activities(36,855,572)$ (37,056,041)$ (44,184,332)$ (49,584,235)$ (59,700,081)$ (54,033,482)$ (66,480,062)$ (61,717,371)$ (61,519,965)$ (69,376,912)$ Business-type activities9,744,083 20,070,402 17,053,089 20,384,353 24,472,415 18,545,261 23,309,663 22,956,601 21,038,515 13,609,041 Total primary government net expense(27,111,489)$ (16,985,639)$ (27,131,243)$ (29,199,882)$ (35,227,666)$ (35,488,221)$ (43,170,399)$ (38,760,770)$ (40,481,450)$ (55,767,871)$ General Revenues and Other Changes in Net PositionGovernmental activities:TaxesProperty taxes 15,888,475$ 16,646,519$ 18,573,309$ 20,670,112$ 22,769,699$ 24,745,344$ 24,333,373$ 24,978,388$ 26,451,943$ 27,349,234$ Sales and mixed beverage taxes 15,705,090 17,082,936 18,449,731 20,241,973 19,873,213 19,751,004 20,717,598 21,878,057 23,506,772 25,141,825 Franchise taxes 1,718,491 2,132,341 1,931,196 2,090,779 2,217,618 2,210,902 2,153,827 2,171,277 2,209,091 2,407,344 Hotel taxes 2,306,928 2,671,417 2,980,250 3,585,512 3,574,649 3,387,041 3,558,042 3,643,887 4,393,867 5,127,808 Unrestricted investment earnings 1,487,926 3,415,849 4,512,575 3,385,844 1,413,431 265,424 368,868 283,648 252,308 195,863 Gain (Loss) on sale of capital assets (111,916) - - - - (24,596) - - - 1,827,783 Correction to value of capital assets(601,000) - - - - - - - - - Transfers8,188,725 8,850,453 10,090,589 7,559,165 12,778,642 15,337,330 13,562,095 12,502,186 12,039,798 12,935,733 Total governmental activities44,582,719 50,799,515 56,537,650 57,533,385 62,627,252 65,672,449 64,693,803 65,457,443 68,853,779 74,985,590 Business-type activities:Unrestricted investment earnings 947,477 1,829,456 1,932,624 1,330,785 654,882 420,236 341,698 316,035 174,170 120,006 Transfers - - - - - - - - - - Total business-type activities (8,188,725) (8,850,453) (10,090,589) (10,433,954) (12,778,642) (15,337,330) (13,562,095) (12,502,186) (12,039,798) (12,935,733) Total primary government (7,241,248) (7,020,997) (8,157,965) (9,103,169) (12,123,760) (14,917,094) (13,220,397) (12,186,151) (11,865,628) (12,815,727) 37,341,471$ 43,778,518$ 48,379,685$ 48,430,216$ 50,503,492$ 50,755,355$ 51,473,406$ 53,271,292$ 56,988,151$ 62,169,863$ Change in net positionGovernmental activities 7,727,147$ 13,743,474$ 12,353,318$ 7,949,150$ 2,927,171$ 11,638,967$ (1,786,259)$ 3,740,072$ 7,333,814$ 5,608,678$ Business-type activities 2,502,835 13,049,405 8,895,124 11,281,184 12,348,655 3,628,167 10,089,266 10,770,450 9,172,887 793,314 Total primary government 10,229,982$ 26,792,879$ 21,248,442$ 19,230,334$ 15,275,826$ 15,267,134$ 8,303,007$ 14,510,522$ 16,506,701$ 6,401,992$ Source: City of College StationCorrection to value of capital assets in fiscal year 2005 is a prior period adjustment.Fiscal YearCITY OF COLLEGE STATION, TEXASCHANGES IN NET POSITION - ContinuedLAST TEN FISCAL YEARS(accrual basis of accounting)114 2005200620072008200920102011201220132014Function/ProgramGovernmental activities:General government3,121,430$ 4,357,597$ 3,343,904$ 2,501,778$ 1,957,500$ 5,124,710$ 1,281,849$ 2,095,173$ 1,593,295$ 3,338,669$ Fiscal services508,810 547,790 409,100 684,666 38,377 100,495 215,626 542,689 666,103 1,028,531 Police4,093,425 3,875,900 3,713,866 4,533,697 5,004,712 5,161,486 4,596,713 4,174,931 3,650,964 3,498,374 Fire916,804 817,910 1,400,464 1,137,759 3,551,620 2,199,375 1,952,851 1,936,311 1,948,961 1,777,507 Planning and development services1,043,672 1,091,848 1,306,690 1,357,037 1,051,943 1,075,342 1,296,213 1,650,017 1,493,021 1,730,441 Public works5,600,569 8,768,809 6,470,655 4,312,571 4,445,595 15,313,779 5,796,384 5,609,036 8,711,394 8,578,862 Capital improvement program- - - - - 951,686 - 52,757 - - Library- - - - - - - 13,200 - - Information technology- - - - - - 15,500 - - - Parks and recreation1,044,134 1,244,476 1,420,284 1,932,001 2,117,227 3,816,773 3,330,986 3,196,969 2,576,020 2,934,766 Subtotal governmental activities16,328,844 20,704,330 18,064,963 16,459,509 18,166,974 33,743,646 18,486,122 19,271,083 20,639,758 22,887,150 Business-type activities:Electric52,780,914 62,284,935 69,033,816 77,419,441 84,552,573 92,530,434 102,516,252 98,200,411 96,283,238 98,872,262 Water9,826,360 12,409,728 11,314,888 14,115,391 19,065,662 17,118,922 18,710,635 16,905,503 19,167,542 15,854,663 Wastewater10,014,243 11,416,486 11,805,562 13,811,356 15,100,534 15,208,551 14,584,557 15,844,190 15,946,613 17,072,780 Sanitation5,151,204 6,419,446 7,512,194 9,628,798 8,006,587 9,574,489 7,147,282 8,914,742 7,233,110 10,053,957 Northgate parking480,627 576,892 620,124 673,818 990,735 1,140,833 1,206,897 1,149,277 1,234,799 1,298,034 Subtotal business-type activities78,253,348 93,107,487 100,286,584 115,648,804 127,716,091 135,573,229 144,165,623 141,014,123 139,865,302 143,151,696 Total primary government94,582,192$ 113,811,817$ 118,351,547$ 132,108,313$ 145,883,065$ 169,316,875$ 162,651,745$ 160,285,206$ 160,505,060$ 166,038,846$ Source: City of College StationFiscal YearCITY OF COLLEGE STATION, TEXASPROGRAM REVENUES BY FUNCTION/PROGRAMLAST TEN FISCAL YEARS(accrual basis of accounting)115 2005200620072008200920102011201220132014General fundNonspendable-$ -$ -$ -$ 62,390$ 70,516$ 58,548$ -$ 59,426$ 64,594$ Restricted- - - - 95,220 849,622 925,798 868,799 266,573 - Commited - Assigned- - - - 1,663,400 1,794,416 537,586 436,979 972,632 1,457,390 Unassigned- - - - 7,557,419 11,101,327 12,871,125 15,186,915 14,626,901 18,722,265 Reserved1,132,180 1,523,619 1,108,449 2,305,476 - - - - - - Unreserved9,038,345 9,448,389 11,824,140 9,679,913 ------ Total general fund 10,170,525$ 10,972,008$ 12,932,589$ 11,985,389$ 9,378,429$ 13,815,881$ 14,393,057$ 16,492,693$ 15,925,532$ 20,244,249$ All other governmental fundsNonspendable-$ -$ -$ -$ 859,654$ 8,235,642$ 7,890,137$ 6,943,250$ 6,667,812$ 6,485,508$ Restricted- - - - 39,375,368 54,421,910 27,404,127 35,688,123 39,327,653 58,993,882 Commited- - - - 2,627,403 2,764,227 3,149,243 3,618,354 4,008,439 4,130,069 Assigned- - - - 609,113 - - - - - Unassigned- - - - 545,024 - - - - - Reserved42,999,111 49,111,974 46,372,274 48,819,538 - - - - - - Unreserved, reported in:Special revenue funds6,244,225 7,462,140 10,148,840 11,526,009 ------ Total all other governmental funds 49,243,336$ 56,574,114$ 56,521,114$ 60,345,547$ 44,016,562$ 65,421,779$ 38,443,507$ 46,249,727$ 50,003,904$ 69,609,459$ Source: City of College StationNote: The City implemented GASB Statement 54 in 2009; schedules presenting governmental fund balance reclassifications begin in that year.Fiscal YearCITY OF COLLEGE STATION, TEXASFUND BALANCES, GOVERNMENTAL FUNDSLAST TEN FISCAL YEARS(modified accrual basis of accounting)116 2005200620072008200920102011201220132014RevenuesTaxes35,618,984$ 38,533,213$ 41,934,486$ 46,588,376$ 48,435,179$ 49,901,803$ 50,762,840$ 52,671,608$ 55,652,419$ 59,018,199$ Licenses and permits1,025,013 945,593 1,191,105 1,154,902 1,007,151 964,344 1,091,983 1,496,989 1,240,300 1,438,082 Intergovernmental2,592,312 3,144,254 2,038,535 1,707,957 1,896,623 5,022,822 2,143,573 2,759,219 1,749,805 3,234,317 Charges for services2,634,683 2,925,281 3,339,352 3,790,147 3,543,064 6,042,105 6,113,497 5,616,379 5,918,397 6,236,531 Fines, forfeits and penalties3,518,940 3,285,907 3,256,488 3,798,313 4,491,960 4,500,447 4,120,077 3,896,477 3,462,197 3,231,069 Special assessments1,110,686 1,290,935 1,199,565 1,255,525 1,793,174 - - - - - Investment income1,269,201 3,066,642 3,864,797 2,886,636 1,125,382 206,648 368,868 283,648 252,308 195,863 Rents and royalties243,831 244,864 261,225 279,004 769,150 749,635 589,528 852,738 753,401 639,267 Loan repayments2,541 - - - - - - - - - Contributions37,182 12,281 31,605 27,213 26,997 605,953 825,532 1,244,973 799,048 1,263,644 Reimbursed expenditures- 145,749 479,675 46,038 413,751 - - - - - Other revenues631,192 447,432 738,415 1,046,431 403,548 267,695 730,747 426,218 312,473 674,439 Total revenues 48,684,565 54,042,151 58,335,248 62,580,542 63,905,979 68,261,452 66,746,645 69,248,249 70,140,348 75,931,411 ExpendituresGeneral government 4,480,075 4,216,582 4,699,159 7,319,662 5,435,355 7,401,157 6,438,313 4,102,550 3,825,760 5,108,448 Fiscal services 3,038,145 3,050,533 3,013,548 3,573,686 3,836,786 3,635,009 3,353,387 3,106,265 3,205,204 3,260,242 Police 10,829,081 11,559,669 12,556,678 13,219,117 14,107,740 13,816,620 14,931,212 15,521,284 16,550,111 17,093,860 Fire 7,964,785 8,493,228 9,622,195 11,251,400 11,754,088 11,418,948 11,444,702 12,578,396 13,297,527 13,585,022 Planning and development services 1,962,603 1,877,732 2,008,901 2,281,747 2,871,341 2,568,464 3,327,495 4,698,749 4,268,854 4,933,780 Public works 6,117,241 7,116,329 7,440,854 7,182,443 7,920,003 7,123,885 6,677,986 7,343,092 7,397,942 8,632,149 Capital improvement projects - - - 715,707 476,462 132,880 648,589 788,032 733,974 731,621 Economic and community development11,281 - - - - - - - - - Parks and recreation6,778,196 7,520,189 8,167,857 9,071,198 9,355,301 8,930,388 9,388,765 8,131,413 7,883,904 7,712,597 Information systems2,500,518 2,596,591 3,070,524 3,366,764 3,299,105 3,887,102 3,902,082 3,844,107 4,271,209 4,214,958 Library694,445 870,203 912,527 993,102 1,119,771 1,080,030 1,061,581 1,072,551 994,476 1,078,851 Reimbursed administrative(3,485,807) (3,335,264) (3,305,040) (3,772,362) - - - - - - Claims- - - - - 1,600,000 - - - - Contributions1,895,742 1,995,564 1,855,961 2,151,592 2,489,562 2,266,558 2,063,489 2,435,820 2,800,159 3,281,991 Community development block grant275,775 340,399 215,707 - - - - - - - Home grant439,243 840,211 323,811 - - - - - - - Other expenditures296,344 108,527 147,860 204,338 487,163 438,757 750,135 1,380,837 1,964,156 679,772 Capital outlay15,435,376 11,610,189 14,213,574 19,538,322 31,931,401 9,765,151 11,501,926 14,341,717 8,802,719 12,636,334 CITY OF COLLEGE STATION, TEXASCHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS(modified accrual basis of accounting)Fiscal Year117 2005200620072008200920102011201220132014Debt servicePrincipal6,190,000 7,285,000 7,820,000 8,530,000 7,935,000 8,050,000 8,085,412 8,120,000 8,245,000 8,650,000 Interest3,885,075 4,078,635 4,212,245 3,892,490 4,114,356 4,133,633 3,698,324 3,696,245 3,747,520 3,707,799 Issuance costs118,261 - - - - - - - 154,660 39,719 Fiscal charges13,871 152,729 527,806 70,796 46,551 227,765 384,196 127,671 - - Intergovernmental97,621 743,117 342,630 881,604 745,908 -924,941 294,103 301,061 489,817 Total expenditures 69,537,871 71,120,163 77,846,797 90,471,606 107,925,893 86,476,347 88,582,535 91,582,832 88,444,236 95,836,960 Deficiency of revenues under expenditures(20,853,306) (17,078,012) (19,511,549) (27,891,064) (44,019,914) (18,214,895) (21,835,890) (22,334,583) (18,303,888) (19,905,549) Other Financing Sources (Uses)Proceeds from long-term debt13,347,581 15,700,000 7,890,000 19,970,000 9,815,000 20,685,000 1,977,134 11,727,994 14,505,000 31,895,000 Proceeds from refunding bonds- - 10,255,000 - - 4,265,000 11,250,000 - - - Payment to bond escrow agent- - (10,451,378) - - (4,283,647) (12,322,570) - - - Advance Refunding- - - - - - - (11,432,308) (6,054,452) (9,755,695) Premium on bonds issued- - 373,648 - - 75,183 1,172,234 1,132,812 951,174 3,624,222 Sale of capital assets12,182 17,500 318,103 10,981 505,606 5,615 8,690 - - 4,582,111 Transfers in11,476,019 11,864,435 15,054,935 13,828,414 22,680,922 16,054,544 19,382,145 22,313,561 18,629,471 20,798,696 Transfers out(3,879,201) (2,371,662) (2,021,178) (3,041,098) (8,494,139) (673,081) (7,783,625) (9,385,160) (6,540,298) (7,314,513) Total other financing sources 20,956,581 25,210,273 21,419,130 30,768,297 24,507,389 36,128,614 13,684,008 14,356,899 21,490,895 43,829,821 Net change in fund balances 103,275$ 8,132,261$ 1,907,581$ 2,877,233$ (19,512,525)$ 17,913,719$ (8,151,882)$ (7,977,684)$ 3,187,007$ 23,924,272$ Debt services as a percentage of noncapital expenditures18.6% 19.1% 18.9% 17.5% 15.9% 15.9% 15.3% 15.3% 15.1% 14.9%Source: City of College StationFiscal YearCITY OF COLLEGE STATION, TEXASCHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS - ContinuedLAST TEN FISCAL YEARS(modified accrual basis of accounting)118 Fiscal Year PropertySalesHotel Franchise Mixed Drink Total2005 15,888,475$ 15,445,404$ 2,306,928$ 1,718,491$ 259,686$ 35,618,984$ 2006 16,646,519 16,752,174 2,671,417 2,132,341 330,762 38,533,213 2007 18,573,309 18,077,973 2,980,250 1,931,196 371,758 41,934,486 2008 20,670,112 19,822,906 3,585,512 2,090,778 419,067 46,588,375 2009 22,769,698 19,438,179 3,574,649 2,217,619 435,034 48,435,179 2010 24,523,184 19,328,578 3,416,713 2,210,902 422,426 49,901,803 2011 24,333,373 20,292,871 3,558,042 2,153,827 424,727 50,762,840 2012 24,978,388 21,498,319 3,643,887 2,171,277 379,737 52,671,608 2013 25,542,689 23,064,035 4,393,867 2,209,091 442,737 55,652,419 2014 26,341,222 24,565,649 5,127,808 2,407,344 576,176 59,018,199 Change2005 - 201465.8%59.0% 122.3%40.1% 121.9%65.7%Source: City of College StationNotes: Property taxes include general fund, debt service fund Northgate TIF(2008 - 2009) and Wolf Pen Creek TIF (1996 - 2010).CITY OF COLLEGE STATION, TEXASTAX REVENUE BY SOURCE, GOVERNMENTAL FUNDSLAST TEN FISCAL YEARS(modified accrual basis of accounting)119 Taxable AssessedCommercial Personal, InventoryValue as a Residential and Industrial and Other Less Exemptions Less TIF (1) Total Taxable Total Direct Estimated Actual Percentage ofFiscal Year Property Property Property and Abatements Captured Value Assessed Value Tax Rate Taxable Value Actual Taxable Value2005 2,339,284,129$ 770,194,254$ 738,376,045$ 556,722,986$ 45,182,585$ 3,245,948,857$ 0.464000 3,250,329,407$ 99.87%2006 2,530,659,165 931,255,843 798,179,118 614,609,545 45,750,172 3,599,734,409 0.439400 3,599,734,409 100.00%2007 2,849,558,106 1,020,242,352 828,757,366 643,387,278 50,131,743 4,005,038,803 0.439400 4,005,038,803 100.00%2008 3,200,809,497 1,141,458,255 881,095,548 677,645,852 68,644,309 4,477,073,139 0.439400 4,477,073,139 100.00%2009 3,606,901,737 1,191,974,529 927,276,877 701,998,930 78,082,864 4,946,071,349 0.439400 4,946,071,349 100.00%2010 3,941,112,015 1,236,193,238 1,069,742,963 856,257,215 69,373,412 5,321,417,589 0.439400 5,321,417,589 100.00%2011 4,087,540,319 1,209,126,533 1,029,151,665 870,386,056 -5,455,432,461 0.447543 5,455,432,461 100.00%20124,280,768,585 1,295,254,729 1,069,727,466 907,135,778 -5,738,615,002 0.437995 5,738,615,002 100.00%20134,466,234,632 1,321,942,044 1,185,964,447 1,029,828,136 -5,944,312,987 0.430687 5,944,312,987 100.00%20144,713,785,311 1,350,665,951 1,323,614,835 1,156,947,087 17,534,345 6,213,584,665 0.425958 6,213,584,665 100.00%Source: Brazos County Appraisal DistrictNotes: Assessed value is 100% of the estimated actual value.(1) Tax increment financing district (TIF).CITY OF COLLEGE STATION, TEXASASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTYLAST TEN FISCAL YEARS120 General Total College Fiscal Basic Obligation Direct Station Brazos Year Rate Debt Service Rate ISD County 2005 0.194200 0.269800 0.464000 1.770000 0.472600 2006 0.189600 0.249800 0.439400 1.675000 0.465000 2007 0.191000 0.248400 0.439400 1.480000 0.455000 2008 0.191000 0.248400 0.439400 1.241050 0.465000 2009 0.193352 0.246048 0.439400 1.221100 0.480000 2010 0.209967 0.229433 0.439400 1.253413 0.480000 2011 0.227349 0.220194 0.447543 1.309933 0.485600 2012 0.236459 0.201536 0.437995 1.335033 0.485000 2013 0.235052 0.195635 0.430687 1.335033 0.485000 2014 0.232905 0.193053 0.425958 1.320000 0.487500 Source: Brazos County Appraisal District Notes: (1) Tax rates are established by each taxing jurisdiction on an annual basis for revenues to be collected in the following fiscal year. The City must publish its effective and rollback tax rates before adopting an actual tax rate. If the City adopts a rate that exceeds the rollback rate, voters may petition for an election to limit the rate to the rollback rate. If the City adopts a rate that exceeds its effective rate, additional public hearings and notices are required. Rates for debt service are set based on each year's requirements. (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. City Direct Rates Overlapping Rates CITY OF COLLEGE STATION, TEXAS DIRECT AND OVERLAPPING PROPERTY TAX RATES LAST TEN FISCAL YEARS (rate per $100 of assessed value) 121 Percent of Percent of of Total Cityof Total CityTaxableTaxableTaxableTaxable2013 AssessedAssessed 2004 AssessedAssessedTaxpayerValue Rank ValueValue Rank ValuePost Oak Mall - College Station LLC57,206,360$ 10.92%49,331,205$ 11.50%College Station Properties LP56,622,230 20.91%College Station Hospital LP56,154,920 30.90%34,254,230 30.95%SHP-The Callaway House LP50,609,325 40.81%SW Meadows Point LP45,584,367 50.73%Culpepper Family LP42,145,765 60.68%Weinberg, Isreal & David Alkosser41,348,751 70.67%31,168,425 40.95%BVP 2818 Place, LP40,950,550 80.66%The Rise at Texas Properties I LLC40,615,800 90.65%JamesPoint Management39,356,249 100.63%Verizon Communications, Inc.34,528,500 21.05%Wal-Mart/Sam's24,916,345 50.76%HE Butt Store Property Co. 18,912,125 60.57%301 Church Avenue, LP17,936,445 70.54%Melrose Apartments17,753,830 80.54%Fairfield College Station LP17,514,700 90.53%University Commons17,279,200 100.53%Source: Brazos County Appraisal DistrictCITY OF COLLEGE STATION, TEXASPRINCIPAL PROPERTY TAXPAYERSCURRENT YEAR AND NINE YEARS AGO20142005122 Fiscal Year Taxes Levied CollectionsEnded for the Percentage in Subsequent PercentageSept 30 Fiscal Year Amount of Levy Years Amount of Levy2005 15,270,852$ 15,160,102$ 99.27% 35,158$ 15,195,260$ 99.50%2006 16,162,073 15,938,981 98.62% 146,139 16,085,120 99.52%2007 17,818,419 17,697,220 99.32% 39,655 17,736,875 99.54%2008 19,973,882 19,773,036 98.99% 110,334 19,883,370 99.55%2009 22,076,134 21,795,748 98.73% 166,535 21,962,283 99.48%2010 23,623,086 23,435,105 99.20% 80,220 23,515,325 99.54%2011 24,323,279 24,136,088 99.23% 75,694 24,211,782 99.54%2012 24,979,685 24,762,625 99.13% 84,995 24,847,620 99.47%2013 25,503,096 25,326,360 99.31% (12,119) 25,314,241 99.26%2014 26,407,915 26,213,476 99.26% - 26,213,476 99.26%Sources: City of College Station and Brazos County Tax OfficeCITY OF COLLEGE STATION, TEXASPROPERTY TAX LEVIES AND COLLECTIONSLAST TEN FISCAL YEARSCollected within theFiscal Year of the LevyTotal Collections to Date123 2004200520062007200820092010201120122013Utilities14,943$ 16,684$ 19,336$ 22,403$ 25,483$ 26,442$ 27,724$ 32,048$ 29,102$ 29,956$ Construction6,477 12,076 13,918 15,818 15,768 10,617 10,070 10,900 12,743 12,053 Manufacturing9,323 12,926 13,066 13,200 16,391 12,221 9,620 6,823 7,433 7,941 Wholesale Trade24,173 25,939 17,482 8,759 13,761 9,856 10,770 19,556 23,573 26,941 Retail Trade529,284 563,662 608,940 686,271 693,673 653,561 678,041 699,715 738,897 777,632 Information16,092 14,409 14,082 12,148 15,427 15,654 16,907 16,984 18,261 21,546 Finance and Insurance1191302165417527068401,043 1,044 1,336 Real Estate and Rental/Leasing12,258 12,024 15,679 16,249 18,326 9,288 9,456 9,314 9,785 11,411 Professional, Scientific and Tech Services8,618 8,692 9,530 11,074 26,234 25,694 13,142 12,901 12,716 14,518 Administrative, Support, Waste Mgmt, Remediation14,655 15,133 16,462 15,054 18,362 17,610 16,831 17,381 19,645 21,080 Educational Services22,981 26,252 2,209,091 32,502 27,645 35,351 34,952 37,434 43,135 43,173 Health Care and Social Assistance1,951 2,547 2,873 4,051 2,888 2,301 2,049 1,920 2,116 3,103 Arts, Entertainment and Recreation6,173 6,781 6,949 7,399 9,168 8,671 8,470 9,325 9,488 11,070 Accommodation and Food Services147,277 158,267 169,900 185,723 205,967 204,731 208,597 217,445 238,186 256,716 Other Services34,563 38,894 17,069 14,539 15,782 15,338 15,890 16,274 18,594 22,322 Total 848,887$ 914,416$ 3,134,593$ 1,045,731$ 1,105,627$ 1,048,041$ 1,063,359$ 1,109,063$ 1,184,718$ 1,260,798$ City direct sales tax rate 1.50% 1.50% 1.50% 1.50% 1.50% 1.50% 1.50% 1.50% 1.50% 1.50%Source: Texas State Comptroller of Public AccountsNotes: Taxable sales information is not available on a fiscal-year basis. CITY OF COLLEGE STATION, TEXASTAXABLE SALES BY CATEGORYLAST TEN CALENDAR YEARS(in thousands of dollars)124 City Brazos State of Fiscal Year Direct Rate County Texas 2005 1.50%0.50%6.25% 2006 1.50%0.50%6.25% 2007 1.50%0.50%6.25% 2008 1.50%0.50%6.25% 2009 1.50%0.50%6.25% 2010 1.50%0.50%6.25% 2011 1.50%0.50%6.25% 2012 1.50%0.50%6.25% 2013 1.50%0.50%6.25% 2014 1.50%0.50%6.25% Source: Texas State Comptroller of Public Accounts CITY OF COLLEGE STATION, TEXAS DIRECT AND OVERLAPPING SALES TAX RATES LAST TEN FISCAL YEARS 125 Number Percentage Tax Percentage Number Percentage Tax Percentageof Outlets of Total Liability of Total of Outlets of Total Liability of TotalRetail trade 1,049 60.95% 10,296$ 80.87% 1,317 56.84% 15,695$ 82.96%Services 1719.94%3702.91%310 13.38%5412.86%Wholesale trade382.21%1661.30%903.88%2481.31%Utilities, transportation, communications9 0.52%4933.87%150.65%5602.96%Manufacturing392.27%2061.62%944.06%120.06%Construction734.24%970.76%1265.44%1810.96%Agriculture, forestry, and fishing30.17%- 0.00%40.17%- 0.00%Finance, insurance, real estate432.50%1821.43%682.93%1911.01%All other outlets29617.20%9227.24%293 12.65% 1,490 7.88%Total1,721 100.00% 12,732$ 100.00%2,317 100.00% 18,918$ 100.00%Source: Texas State Comptroller of Public AccountsNotes: Due to confidentiality issues, the names of the ten largest revenue payers are not available. The categories presented are intended to provide alternative information regardingthe sources of the City's revenue.Tax liability information is not available on a fiscal-year basis.Calendar Year 2004Calendar Year 2013CITY OF COLLEGE STATION, TEXASSALES TAX REVENUE PAYERS BY INDUSTRYCALENDAR YEARS 2004 AND 2013(dollars are in thousands)126 GeneralUtilityUtility Revenue Utility RevenueTotalPercentageFiscalObligationCertificates ofRevenueCertificatesGeneralCertificatesGeneralPrimaryof Personal PerYearBondsObligationBondsof Obligation Obligation Bonds of Obligation Obligation Bonds Government Income Capita200549,800,000$ 30,195,000$ 79,215,000$ -$-$8,910,000$ -$168,120,000$ - 2,096$ 200653,835,000 34,905,000 91,460,000 - - 8,580,000 - 188,780,000 - 2,304 200755,720,000 33,500,000 105,215,000 - - 8,240,000 - 202,675,000 - 2,409 200860,695,000 39,965,000 99,560,000 - - 23,820,000 - 224,040,000 17.12% 2,576 200959,145,000 38,575,000 93,755,000 4,530,000 - 47,755,000 - 243,760,000 14.04% 2,682 201075,020,000 35,675,000 87,745,000 4,970,000 3,830,000 48,970,000 - 256,210,000 15.08% 2,742 201178,055,000 26,085,000 54,495,000 4,765,000 3,070,000 50,185,000 25,585,000 242,240,000 15.20% 2,560 201275,695,000 21,415,000 45,060,000 4,550,000 2,690,000 58,535,000 33,590,000 241,535,000 12.77% 2,492 201379,710,000 17,160,000 34,765,000 4,330,000 2,300,000 66,695,000 36,930,000 241,890,000 13.94% 2,504 201489,050,000 21,805,000 14,920,000 4,100,000 1,905,000 87,210,000 47,995,000 266,985,000 12.65% 2,624 Sources: City of College Station (outstanding debt, per capita) and the U.S. Census Bureau, American Community Survey (personal income)Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements.Personal income information for the City of College Station is only available for calendar years 2005 - 2012.In 2009 the Parking Garage Fund began paying for the Parking Garage debt. In 2010 the Parking Garage Certificates of Obligation were refunded and became General Obligation Debt.Business-Type ActivitiesGovernmental ActivitiesCITY OF COLLEGE STATION, TEXAS OUTSTANDING DEBT BY TYPELAST TEN FISCAL YEARS127 GeneralPercentage ofObligation Less Debt ServiceNetActual TaxableFiscal Year BondsCash Funds Bonded Debt Value of Property Per Capita200549,800,000$ 912,353$ 48,887,647$ 1.50%609$ 200653,835,000 1,645,563 52,189,437 1.45%637 200755,720,000 2,060,709 53,659,291 1.34%638 200860,695,000 2,573,421 58,121,579 1.30%668 200959,145,000 3,125,126 56,019,874 1.13%611 201075,020,000 4,115,689 70,904,311 1.33%759 201178,055,000 4,007,146 74,047,854 1.36%782 201275,695,000 3,320,293 72,374,707 1.26%750 201379,710,000 3,032,594 76,677,406 1.29%794 201489,050,000 2,839,310 86,210,690 1.39%847 Source: City of College StationNotes: Details regarding the City's outstanding debt can be found in the notes to the financial statements.CITY OF COLLEGE STATION, TEXASRATIOS OF NET GENERAL BONDED DEBT OUTSTANDINGLAST TEN FISCAL YEARS128 Estimated Estimated Share Debt Percentage of Direct and Governmental Unit Outstanding Applicablea Overlapping Debt Debt repaid with property taxes College Station I.S.D. 278,045,000$ 87.95% 244,540,578$ Brazos County 88,720,000 53.09% 47,101,448 Bryan I.S.D. 138,870,000 1.90% 2,638,530 Subtotal, overlapping debt 294,280,556 City direct debt 110,735,000 Total direct and overlapping debt 405,015,556$ Sources: Debt outstanding data provided by each governmental unit. Assessed value data used to estimate applicable percentages provided by the Brazos County Appraisal District. Notes: Overlapping governments are those that coincide, at least in part, with the geographical boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of College Station. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident and therefore responsible for repaying the debt of each overlapping government. a For debt repaid with property taxes, the percentage of overlapping debt is estimated using taxable assessed property values. Applicable percentages were estimated by determining the portion of another governmental unit's taxable assessed value that is within the City's boundaries and dividing it by each unit's total assessed value. CITY OF COLLEGE STATION, TEXAS DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT AS OF SEPTEMBER 30, 2014 129 The City has no general obligation legal debt limit other than a ceiling on the ad valorem tax rate as specified by the State of Texas. The prescribed maximum is $2.50 per $100 at 100% valuation. CITY OF COLLEGE STATION, TEXAS LEGAL DEBT MARGIN INFORMATION SEPTEMBER 30, 2014 130 UtilityLess:NetAverageMaximumService Operating Available Debt Service Annual Debt Service AnnualFiscal Year Charges Expenses RevenueTotalCoverageTotalCoverage200570,636,853$ 51,125,745$ 19,511,108$ 5,522,447$ 3.538,364,747$ 2.33 200680,787,029 54,432,847 26,354,182 6,423,582 4.109,163,574 2.88 200787,911,120 63,514,543 24,396,577 7,389,770 3.3010,408,958 2.34 200899,610,432 73,195,783 26,414,649 8,620,759 3.0612,245,949 2.16 2009108,367,552 80,848,570 27,518,982 9,834,136 2.8013,870,272 1.98 2010115,430,088 91,561,103 23,868,985 8,976,012 2.6613,669,444 1.75 2011127,985,835 96,938,864 31,046,971 8,675,457 3.5813,635,526 2.28 2012124,905,906 88,927,662 35,978,244 7,009,717 5.1310,670,889 3.37 2013125,581,359 90,519,871 35,061,488 9,111,927 3.8515,372,461 2.28 2014126,118,088 100,235,329 25,882,759 10,048,709 2.5816,029,505 1.61 Source: City of College StationNotes: Details regarding the City's outstanding debt can be found in the notes to the financial statements. Operating expenses do not include interest, depreciation, or amortization expense.Maximum Debt Service Total includes Utility Revenue Bonds , Certificates of Obligation and GO Refunding Bonds that have been issued for Utility projects. The coverage ratios presented in this schedule are formulas required by bond resolutions. The bond resolutions require that net revenues equal at least 1.4 times the average annual debt service on all revenue bonds and other indebtedness payable from those revenues. The bond resolutionsalso require that net revenues equal at least 1.25 times the maximum annual debt service on all revenue bonds and other indebtedness payablefrom those revenues.Utility Revenue Bonds, Certificates of Obligation, and General Obligation Refunding BondsCITY OF COLLEGE STATION, TEXASPLEDGED-REVENUE COVERAGELAST TEN FISCAL YEARS131 Personal Income Calendar (thousands Per Capita Unemployment Year Population of dollars)Personal Income Rate % 2004 80,214 -$ -$ 2.0 2005 81,930 1,226,974 14,976 3.7 2006 84,116 1,308,384 15,555 3.9 2007 86,982 1,736,221 19,961 3.8 2008 90,897 1,699,361 18,695 4.1 2009 93,450 1,594,056 17,058 5.3 2010 94,642 1,891,621 19,987 5.9 2011 96,603 1,734,731 17,957 6.3 2012 97,534 1,945,242 19,944 5.9 2013 99,918 2,110,139 21,119 4.9 Sources: City of College Station Planning Division (population) U. S. Census Bureau, American Community Survey (personal income) Texas Workforce Commission (unemployment rate) Notes: Personal income information for the City of College Station is only available for calendar years 2005-2013. were added to the Bryan/College Station MSA. The net result is an increase in the area's unemployment rate. CITY OF COLLEGE STATION, TEXAS DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN CALENDAR YEARS unemployment rates. Along with the new calculation method, Robertson and Grimes County In 2005, the Bureau of Labor Statistics introduced a new methodology for calculating 132 2014 2005 Employer Employer Brazos County Brazos County Bryan ISD Bryan ISD City of Bryan City of Bryan City of College Station City of College Station College Station ISD College Station ISD College Station Medical Center Reynolds & Reynolds Reynolds & Reynolds Sanderson Farms, Inc. Sanderson Farms, Inc.St. Joseph Regional Hospital St.Joseph Regional Hospital Texas A&M University System Texas A&M University System Wal-Mart Supercenter - Bryan Source: Texas Workforce Commission, Labor Market/Career Information Department, Research Valley Partnership Notes: Data includes principal employers in Brazos County. Employers are listed in alphabetical order and do not reflect any ranking. The TWC ranking and number of employees data is confidential. PRINCIPAL AREA EMPLOYERS LAST CALENDAR YEAR AND NINE YEARS PRIOR CITY OF COLLEGE STATION, TEXAS 133 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014Function/ProgramGeneral Government41.9 37.8 58.5 71.0 79.5 75.0 61.5 37.5 36.5 37.5 Police144.4 155.1 163.5 168.5 176.0 169.0 180.5 182.5 192.5 196.5 Fire111.4 110.6 119.0 125.0 121.0 118.0 120.5 139.0 139.0 140.0 Public Works112.2 112.6 114.5 106.5 113.0 94.0 96.0 114.0 116.0 118.0 Parks and Recreation120.0 119.8 123.5 131.0 133.0 133.0 119.0 117.0 111.5 105.5 Planning and Development Services 25.8 27.1 24.5 34.0 37.0 41.0 54.0 58.5 56.5 56.0 Information Services37.5 36.6 28.5 33.0 32.0 30.5 30.0 30.5 29.5 30.5 Fiscal Services64.2 70.1 71.0 72.5 70.5 70.0 66.5 69.8 68.8 69.8 Electric56.6 56.0 56.5 58.0 65.0 64.0 63.5 67.5 69.5 70.5 Water / Sewer Services69.1 71.8 71.0 67.5 76.5 70.5 74.0 77.0 77.0 78.0 BVSWMA24.4 24.0 22.0 25.5 25.0 23.5 22.0 22.0 -- Capital Projectn/an/an/a10.0 10.0 9.0 9.0 - -- Total 807.5 821.5 852.5 902.5 938.5 897.5 896.5 915.3 896.8 902.3 Source: City of College StationFull-Time-Equivalent Employees as of Sept 30CITY OF COLLEGE STATION, TEXASFULL-TIME-EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAMLAST TEN FISCAL YEARSDuring the fiscal year ended September 30, 2012, management of BVSWMA, Inc. negotiated the end of the borrowed employee agreement with the City of College Station. A majority of the employees covered under the "Borrowed Employee Agreement" are now employees of BVSWMA, Inc.Full-time-equivalent employees include full time, part time, and seasonal/temporary employees on staff as of September 30.134 2005200620072008200920102011201220132014Function/ProgramGeneral GovernmentOpen records requests 72199199155164123240194233432Economic development prospects20311918235531253635Code enforcement cases processed2,848 5,984 4,838 5,148 6,2485,2684,701 5,011 4,517 7,941 Non-profit agencies/contracts monitored9137109108787Applicants receiving homebuyers assistance29634631584PoliceDUI/DWI arrests387414493458430449571551473474Citations processed39,416 34,134 38,046 10,384 17,275 22,224 42,690 39,145 31,348 29,187 Uniform patrol calls handled57,605 60,159 58,303 57,661 48,297 58,656 61,283 63,000 75,988 71,373 Average response time on high priority calls6:09 mins 6:15 mins 6:17 mins 6.06 mins 6:18 mins 6:52 mins 6:41 mins 6:38 mins 4:31 mins 7:10 minsCriminal investigation new cases assigned2,300 2,368 2,256 2,635 2,5902,0982,582 2,089 2,158 1,894 Note: In FY08 an e-citation program was implemented thus reducing the number of paper citations processed.FireFire incidents (fire, rescue, and haz mat)1,792 1,743 1,832 1,832 1,9922,0082,301 1,813 1,751 2,974 Business safety inspections1,138 8281,018 1,018 9477601,364 1,151 9071,345 EMS incidents3,241 3,048 3,773 3,773 4,7185,3675,414 5,407 6,814 5,170 EMS unit responses4,930 5,276 5,476 5,476 5,3695,0515,646 6,090 6,295 9,435 Public WorksStreet repair work orders350200200Street overlay lane miles191919159211101313Potholes repaired 24,696 24,778 21,506 20,546 18,000 68,548 67,448 70,515 62,596 61,439 Curb miles swept6,338 7,235 6,040 6,955 5,6205,5956,244 7,131 5,826 6,311 Note: In FY10 # of potholes repaired went to # of square feet repaired.Parks and RecreationInstructional participants3,579 3,075 3,432 3,538 3,0773,1122,765 1,835 1,600 2,495 Pool customers132,549 146,805 128,206 142,605 138,785 93,302 114,458 144,059 128,081 73,229 CITY OF COLLEGE STATION, TEXASOPERATING INDICATORS BY FUNCTION/PROGRAMLAST TEN FISCAL YEARS135 2005200620072008200920102011201220132014Function/ProgramPlanning and Development ServicesPermits processed 6,500 6,575 7,583 6,647 5,819 5,972 6,026 5,600 3,991 4,446 Building inspections performed 13,297 13,069 13,398 13,814 12,938 12,379 11,583 12,100 12,945 13,859 Parking citations issued 11,900 8,452 7,238 9,460 9,686 6,763 4,488 6,530 6,868 7,320 Community enhancement cases 7,016 7,384 8,631 11,885 11,622 11,408 8,632 8,900 6,518 7,941 ElectricNumber of connections 36,284 37,590 38,519 37,777 37,818 38,255 37,829 39,123 38,138 19,000 Average monthly consumption (KWH) 60,413,524 61,910,063 60,766,805 64,724,128 64,065,679 65,049,732 68,191,018 65,266,563 64,568,405 66,715,908 WaterNumber of connections 32,266 33,491 34,763 37,075 37,344 37,596 37,565 39,338 40,767 24,847 Average monthly consumption (MGW) 283,429 317,438 293,246 324,012 345,170 301,399 408,327 356,791 380,558 343,360 SewerNumber of connections 29,694 31,051 32,034 34,743 34,743 35,853 35,510 36,908 38,688 32,065 Average daily sewage treatment 6,220 5,911 6,502 6,626 6,625 6,700 6,242 6,453 6,500 7,129 (thousands of gallons)New services completed571646521781604377301376319555SanitationNumber of users (units)28,399 27,181 28,112 29,533 30,750 30,779 30,455 31,573 32,551 23,239 Residential tons collected23,535 24,964 27,556 22,191 21,406 28,451 22,775 28,991 25,493 26,290 Residential tons recycled9239831,060 1,199 1,0641,053 1,173 1,124 1,010 982Commercial tons collected35,114 35,122 38,402 38,709 36,245 36,558 35,133 34,608 36,751 37,856 Parking garageActive contract customers449 432472464333524482460354410Hourly cash customers127,608 108,893 109,028 107,584 104,342 85,210 83,048 80,127 81,624 80,555 Utility Customer ServicePayments processed401,891 413,088 423,299 443,766 461,557 467,262 436,936 476,999 498,703 495,659 Incoming calls82,234 85,728 85,842 97,121 96,876 85,212 84,861 94,986 93,075 93,862 Meters read598,660 618,676 640,554 670,913 694,270 708,672 719,749 732,631 744,298 758,306 Source: City of College Station various departmentsCITY OF COLLEGE STATION, TEXASOPERATING INDICATORS BY FUNCTION/PROGRAM - ContinuedLAST TEN FISCAL YEARS136 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014Function/ProgramPolicePatrol units 26 26 29 29 29 27 33 32 39 39 Jail capacity17 17 17 17 17 17 17 17 17 17 Fire stations4444444566 Note: The Fire Department operates an additional fire station located at the airport.Public WorksStreets (linear miles)385 395 429 438 428 453 474 482 482 493 Sidewalks (miles)97 100 100 100 119 130 138 150 156 162 Traffic signals62 62 65 66 66 69 70 75 76 77 Storm sewers (miles)*72 72 72 80 83 83 89 89 95 Notes: Street measurement changed from lane miles to linear miles in FY04. Storm sewer mileage includes both underground pipes and valley gutters.Parks and RecreationAcreage1,248 1,274 1,289 1,306 1,306 1,327 1,327 1,327 1,328 1,412 Playunits35 46 48 47 54 56 57 57 56 61 Softball/baseball fields 25 32 32 35 35 36 36 36 36 41 Soccer fields 26 31 31 29 29 30 30 30 30 35 Jogging/walking trails26 27 28 29 33 34 34 34 34 41 Community centers3333333322Pools3333333333Pavilions (rentable)6677667777 Notes: Some parks have multiple playunits. Softball/baseball fields include practice fields.ElectricPeak demand (megawatts)280 260 355 355 355 305 305 325 325 204 Number of substations4555566666Distribution lines (miles)450 394 411 411 432 440 444 438 458 458 WaterWater mains (miles)341 365 367 381 385 396 402 410 415 420 Fire hydrants2,165 2,232 2,380 2,453 2,494 2,562 2,614 2,682 2,741 2,798 Number of wells6888899999Water production capacity 28,000 23,000 23,000 23,000 26,000 32,000 27,000 30,000 29,000 29,000 (thousands of gallons per day)SewerSanitary sewer lines (miles)271 279 285 301 305 313 319 324 324 324 Treatment capacity 11,500 11,500 11,500 11,500 11,500 11,500 11,500 11,500 11,500 11,500 (thousands of gallons per day)SanitationCollection trucks24 24 25 25 25 25 25 25 25 26 Residential collection containers15,958 16,647 18,135 19,549 20,275 20,671 20,550 21,547 22,470 23,239 Commercial collection containers1,545 1,569 1,594 1,619 1,644 1,669 1,694 1,719 1,744 1,894 Fleet number of vehicles613 627 651 643 647 662 662 576 570 596 Source: City of College Station* Data not measured for fiscal year indicated.CITY OF COLLEGE STATION, TEXASCAPITAL ASSET STATISTICS BY FUNCTION/PROGRAMLAST TEN FISCAL YEARS137 2013Ę2014 PROPOSED ANNUAL BUDGET