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FY 2014-2015 -- Comprehensive Annual Financial ReportCITY OF COLLEGE STATION, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 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, 2015 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 ........................................................................................................................... 31 Statement of Activities ................................................................................................................................. 32 Fund Financial Statements: Balance Sheet – Governmental Funds ....................................................................................................... 33 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ................................................................................................................. 34 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds................................................................................................... 35 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ................................................... 36 Statement of Net Position – Proprietary Funds .......................................................................................... 37 Statement of Revenues, Expenses, and Changes in Net Position – Proprietary Funds ............................................................................................................ 38 Statement of Cash Flows – Proprietary Funds ........................................................................................... 39 Notes to the Financial Statements ........................................................................................................................... 40 CITY OF COLLEGE STATION, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 Table of Contents-continued Page Required Supplementary Information: Texas Municipal Retirement System Schedule of Changes in Net Pension Liability And Related Ratios .................................................................................................................................................. 71 Texas Municipal Retirement System Schedule of Contributions ............................................................................. 72 Schedule of Funding Progress – City of College Station Employees Other Post Employment Benefits Plan ..................................................................................................................... 73 Schedule of Revenues, Expenditures, and Changes in Fund Balance, Budget and Actual – General Fund........................................................................................................... 74 Supplementary Information: Combining and Individual Fund Statements and Schedules: Combining Balance Sheet – General Fund(s) ........................................................................................... 76 Combining Statement of Revenues, Expenditures, and Changes In Fund Balance – General Fund(s) ........................................................................................................... 77 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual: General Fund(s): General Fund .................................................................................................................... 78 Economic Development Fund ........................................................................................... 79 Efficiency Time Payment Fund ......................................................................................... 80 Chimney Hill Fund ............................................................................................................. 81 Combining Balance Sheet – Nonmajor Governmental Funds .................................................................... 84 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance – Nonmajor Governmental Funds .................................................................................... 86 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual: Special Revenue Funds: Court Technology Fee Fund ............................................................................................. 88 Court Security Fee Fund ................................................................................................... 89 Juvenile Case Manager Fee Fund .................................................................................... 90 Police Seizure Fund .......................................................................................................... 91 Memorial Cemetery Fund ................................................................................................. 92 CITY OF COLLEGE STATION, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 Table of Contents-continued Page Memorial Cemetery Endowment Fund ............................................................................. 93 Texas Ave Cemetery Endowment Fund ........................................................................... 94 Hotel Tax Fund.................................................................................................................. 95 Community Development Fund………………………………………………………………..96 Wolf Pen Creek (WPC) TIF Fund ..................................................................................... 97 Parks Escrow Fund ........................................................................................................... 98 Drainage Projects Fund .................................................................................................... 99 Truancy Prevention Fee Fund ........................................................................................ 100 West Medical District Tax Increment Reinvestment Zone No. 18 Fund ......................... 101 East Medical District Tax Increment Reinvestment Zone No. 19 Fund .......................... 102 Public, Educational, and Governmental Access Channel Fee Fund .............................. 103 R. E. Meyer Estate Restricted Gift Fund ......................................................................... 104 Capital Projects Funds: General Government Projects Fund ............................................................................... 105 Parks and Recreation Projects Fund .............................................................................. 106 Debt Service Fund ....................................................................................................................... 107 Streets Projects Fund................................................................................................................... 108 Nonmajor Enterprise Funds: Combining Statement of Net Position ....................................................................................................... 110 Combining Statement of Revenues, Expenses, and Changes in Net Position ........................................................................................................................................... 111 Combining Statement of Cash Flows ........................................................................................................ 112 Internal Service Funds: Combining Statement of Net Position ....................................................................................................... 114 Combining Statement of Revenues, Expenses, and Changes in Net Position ........................................................................................................................................... 115 Combining Statement of Cash Flows ........................................................................................................ 116 CITY OF COLLEGE STATION, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015 Table of Contents-continued Page STATISTICAL SECTION: Net Position by Component ................................................................................................................................... 118 Changes in Net Position ........................................................................................................................................ 119 Program Revenues by Function/Program.............................................................................................................. 121 Fund Balances, Governmental Funds ................................................................................................................... 122 Changes in Fund Balances, Governmental Funds ................................................................................................ 123 Tax Revenue by Source, Governmental Funds ...................................................................................................... 125 Assessed Value and Estimated Actual Value of Taxable Property ........................................................................ 126 Direct and Overlapping Property Tax Rates ........................................................................................................... 127 Principal Property Taxpayers ................................................................................................................................... 128 Property Tax Levies and Collections ...................................................................................................................... 129 Taxable Sales by Category ...................................................................................................................................... 130 Direct and Overlapping Sales Tax Rates ................................................................................................................. 131 Sales Tax Revenue Payers by Industry .................................................................................................................. 132 Outstanding Debt by Type ....................................................................................................................................... 133 Ratios of Net General Bonded Debt Outstanding ..................................................................................................... 134 Direct and Overlapping Governmental Activities Debt .............................................................................................. 135 Legal Debt Margin Information .................................................................................................................................. 136 Pledged-Revenue Coverage ..................................................................................................................................... 137 Demographic and Economic Statistics ..................................................................................................................... 138 Principal Area Employers .......................................................................................................................................... 139 Full-Time-Equivalent City Government Employees by Function/Program ............................................................... 140 Operating Indicators by Function/Program ................................................................................................................ 141 Capital Asset Statistics by Function/Program ............................................................................................................ 143 1 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 September 30, 2015 Principal City Officials Elected Officials Mayor ................................................................................................................................................................... Nancy Berry City Council Place 1/Mayor Pro Tem.................................................................................................................. Blanche Brick City Council Place 2 ............................................................................................................................................ Steve Aldrich City Council Place 3 ............................................................................................................................................. 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 Finance ....................................................................................................................................................... Vacant 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 Director of Economic Development ..................................................................................................................... Natalie Ruiz City Attorney ................................................................................................................................................... Carla Robinson City Secretary .............................................................................................................................................. Sherry Mashburn Internal Auditor ......................................................................................................................................................... Ty Elliott 9 10 INDEPENDENT AUDITORS’ 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, 2015, 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 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. 11 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, 2015, 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. Emphasis of Matters As described in Note IV. G. to the financial statements, in 2015, the City adopted new accounting guidance related to the accounting for pensions. Our opinion is not modified with respect to this matter. 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 14–30 and 71–74 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 presented 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 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. 12 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 18, 2016 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. 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, 2015. Bryan, Texas March 18, 2016 13 Management’s Discussion and Analysis For the Fiscal Year Ended September 30, 2015 (Unaudited) City of College Station, Texas 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, 2015. 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 $479,993,922 (net position). Of this amount $55,467,383 (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 $40,918,179 during the fiscal year, which includes a prior period adjustment of $6,584,820. At the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $98,600,029 an increase of $8,746,321 when compared to the prior year. This increase is primarily due to the recognition of proceeds from the sale of property that occurred during the year. Approximately 20.2 percent of the combined governmental funds ending fund balance, or $19,925,641 are available for spending at the City’s discretion (unassigned fund balance). The City’s total amount of outstanding debt is $247,115,000 which is a net decrease of $19,870,000 over last year. This decrease is due to the 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. 14 Management’s Discussion and Analysis For the Fiscal Year Ended September 30, 2015 (Unaudited) City of College Station, Texas 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 14-30 Government-Wide Financial Statements Pages 31-32 Governmental Fund Financial Statements Pages 33-36 Proprietary Fund Financial Statements Pages 37-39 Notes to the Financial Statements Pages 40-70 Additional Required Supplementary Information Pages 71-74 Information on individual funds and other supplementary information not required by GAAP Pages 75-116 Trend Data and Non-financial Data Pages 117-143 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 15 Management’s Discussion and Analysis For the Fiscal Year Ended September 30, 2015 (Unaudited) City of College Station, Texas 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 31-32. 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 33-36. 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. 16 Management’s Discussion and Analysis For the Fiscal Year Ended September 30, 2015 (Unaudited) City of College Station, Texas 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 37-39. 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 40-70. Required Supplementary Information In addition to the basic financial statements and accompanying notes, this report presents certain required supplementary information, found on pages 71-74, 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 75-116. 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 $479,993,922 at the close of the most recent fiscal year. The largest portion of the City’s net position (76.6 percent) reflects its investment of $367,570,439 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. 17 Management’s Discussion and Analysis For the Fiscal Year Ended September 30, 2015 (Unaudited) City of College Station, Texas An additional portion of the City’s net position, $56,956,100 (11.9 percent) represents resources that are subject to external restriction on how they may be used. The remaining balance of unrestricted net assets, $55,467,383 (11.6 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 $34,333,359, as a result of fiscal year 2015 operations, as compared to the increase of $6,401,992 for fiscal year 2014 operations. Net Position Governmental Activities Business-Type Activities Total 2015 2014 2015 2014 2015 2014 Assets Current and other assets 122,707,767$ 115,781,965$ 96,596,971$ 93,835,128$ 219,304,738$ 209,617,093$ Capital assets 245,255,015 242,769,318 330,762,494 326,611,683 576,017,509 569,381,001 Total assets 367,962,782 358,551,283 427,359,465 420,446,811 795,322,247 778,998,094 Total deferred outflow of resources 6,609,688 1,732,893 2,677,765 1,361,244 9,287,453 3,094,137 Liabilities Long-term liabilities outstanding 125,247,330 123,373,071 150,282,307 157,936,201 275,529,637 281,309,272 Other liabilities 18,435,110 19,787,860 29,712,081 35,334,536 48,147,191 55,122,396 Total liabilities 143,682,440 143,160,931 179,994,388 193,270,737 323,676,828 336,431,668 Deferred inflows of resources Deferred charge on pensions 727,423 - 211,527 - 938,950 - Total deferred inflows of resources 727,423 - 211,527 - 938,950 - Net Position Net Investment in capital assets 167,101,930 125,012,201 200,468,509 165,180,775 367,570,439 290,192,976 Restricted 55,374,914 15,608,417 1,581,186 1,580,992 56,956,100 17,189,409 Unrestricted 7,685,763 76,502,627 47,781,620 61,775,551 55,467,383 138,278,178 Total net position 230,162,607$ 217,123,245$ 249,831,315$ 228,537,318$ 479,993,922$ 445,660,563$ 18 Management’s Discussion and Analysis For the Fiscal Year Ended September 30, 2015 (Unaudited) City of College Station, Texas The following table provides a summary of the City’s operations for the year ended September 30, 2015 and highlights key elements of the change in the City’s net position: Governmental Activities: Governmental activities increased the City of College Station’s net position by $16,944,457. Key elements of this net increase are as follows: Total revenues increased by 10.8% over the prior year. o Property taxes increased by 13.1% over the prior year as result of increases in property value and an increase in the tax rate. o Sales and mixed beverage taxes increased 6.2% over the prior year reflecting continued strength in the local economy. o All of the other governmental activity revenues increased 12.4 % over the prior year. Expenditures decreased 2.2% over the prior year in part as a result of lower public works capital expenditures in 2015 as compared to 2014. Changes in Net Position:Governmental Activities Business-Type Activities Total Revenues 2015 2014 2015 2014 2015 2014 Program revenues: Charges for services 14,139,897$ 12,248,313$ 140,646,594$ 135,551,100$ 154,786,491$ 147,799,413$ Operating grants and contributions 2,995,401 3,234,317 668,322 291,366 3,663,723 3,525,683 Capital grants and contributions 3,542,528 7,404,520 9,596,813 7,309,230 13,139,341 14,713,750 General revenues: Property taxes 30,936,581 27,349,234 - - 30,936,581 27,349,234 Sales and mixed beverage taxes 26,687,963 25,141,825 - - 26,687,963 25,141,825 Other taxes 8,604,517 7,535,152 - - 8,604,517 7,535,152 Gain on sale of capital assets 6,818,583 1,827,783 - - 6,818,583 1,827,783 Interest and investment income 379,537 195,863 187,322 120,006 566,859 315,869 Total revenues 94,105,007 84,937,007 151,099,051 143,271,702 245,204,058 228,208,709 Expenses Police 18,601,237 17,768,724 - - 18,601,237 17,768,724 Fire 15,095,073 14,245,690 - - 15,095,073 14,245,690 Public works 18,793,401 21,348,088 - - 18,793,401 21,348,088 Parks & recreation 9,884,737 9,197,308 - - 9,884,737 9,197,308 Library 1,213,820 1,149,616 - - 1,213,820 1,149,616 Planning & development svcs 3,225,321 5,012,992 - - 3,225,321 5,012,992 Information technology 4,416,190 4,663,939 - - 4,416,190 4,663,939 Fiscal services 3,594,382 3,419,923 - - 3,594,382 3,419,923 General government 10,194,285 9,602,139 - - 10,194,285 9,602,139 Capital projects - 731,621 - - - 731,621 Interest on long term debt 3,943,972 3,962,347 - - 3,943,972 3,962,347 Unallocated depreciation 1,235,340 1,161,675 - - 1,235,340 1,161,675 Electric utility - - 79,828,415 98,269,576 79,828,415 98,269,576 Water utility - - 13,082,761 11,517,915 13,082,761 11,517,915 Wastewater utility - - 12,437,020 11,205,770 12,437,020 11,205,770 Sanitation services - - 7,786,244 7,497,493 7,786,244 7,497,493 Parking operations - - 953,681 1,051,901 953,681 1,051,901 Total expenses 90,197,758 92,264,062 114,088,121 129,542,655 204,285,879 221,806,717 Incr (Decr) in net position before transfers3,907,249 (7,327,055) 37,010,930 13,729,047 40,918,179 6,401,992 Transfers net 13,037,208 12,935,733 (13,037,208) (12,935,733) - - Increase in net position 16,944,457 5,608,678 23,973,722 793,314 40,918,179 6,401,992 Net position at beginning of year 217,123,245 210,931,073 228,537,318 227,744,004 445,660,563 438,675,077 Prior period adjustment (3,905,095) 583,494 (2,679,725) (6,584,820) 583,494 Net position at end of year 230,162,607$ 217,123,245$ 249,831,315$ 228,537,318$ 479,993,922$ 445,660,563$ 19 Management’s Discussion and Analysis For the Fiscal Year Ended September 30, 2015 (Unaudited) City of College Station, Texas 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 32.9% Sales and Mixed Beverage Tax 28.4% Other Taxes 9.1% Charges for Services 15.0% Capital, Grants Contrib 3.8% Misc 10.8% Governmental Activities Revenue By Source $94,105,007 - 4,000,000 8,000,000 12,000,000 16,000,000 20,000,000 Police Fire Public Works Parks & Rec Plan & Dev Inform Tech Fiscal Svcs Gen'l Gov't Other Governmental Activities Program Revenue and Expense Revenue .. Management’s Discussion and Analysis For the Fiscal Year Ended September 30, 2015 (Unaudited) City of College Station, Texas Business-type Activities: Business-type activities increased the City of College Station’s net position by $23,973,722. Key elements of this increase are as follows: Due in part to lower purchased power costs, expenses were lower than last year by $15,226,616. Capital infrastructure contributions from various developments throughout the City contributed $9,596,813 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 93.1% Grants & Contributions 6.3% Other 0.6% Business-type Revenue $151,099,051 - 20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 120,000,000 Electric Water Wastewater Sanitation Parking Business-type Program Revenue and Expense Revenue Expenses  Management’s Discussion and Analysis For the Fiscal Year Ended September 30, 2015 (Unaudited) City of College Station, Texas 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 2015, the City’s governmental funds reported combined ending fund balances of $98,600,029. Approximately 20.2 percent ($19,925,641) 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 $ 6,307,868 Restricted $ 55,139,903 Committed $ 14,792,873 Assigned $ 2,433,744 A detailed breakdown of the fund balance can be found in Note IV. I. Components of Fund Balances. Revenues for governmental functions totaled $83,944,890 in fiscal year ended September 30, 2015, an increase of 10.6 percent or $8,013,479 from the fiscal year ended September 30, 2014. Expenditures for governmental functions totaling $97,209,982 increased by approximately 1.4 percent or $1,373,022 from the fiscal year ended September 30, 2014. Other financing sources and uses (net) was $22,011,413. As a result, in fiscal year 2015, revenues for governmental functions exceeded expenditures by $8,746,321. Most of this increase was the result of proceeds received for the sale of city property that was recognized in the Hotel Tax Fund. 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 $19,925,641 while the total fund balance was $22,423,064. 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 30.7 percent of fiscal year 2015 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 28.1 percent of total general fund expenditures, while total fund balance represents 31.6 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 $2,178,815 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 $2,814,048. This entire amount is reserved for the payment of debt service. The net decrease in fund balance during the current fiscal year was $400,386. This decrease is due to a planned reduction in the fund balance. 22 Management’s Discussion and Analysis For the Fiscal Year Ended September 30, 2015 (Unaudited) City of College Station, Texas The Streets Projects Fund ended the fiscal year with a balance of $19,681,609. This entire amount is reserved for encumbrances related to current capital projects and for future capital projects. The net decrease in fund balance during the current fiscal year was $3,887,596. This decrease was attributable to progress being made on streets capital projects 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 $249,831,315. Of this amount, 19.1 percent ($47,781,620) constitutes unrestricted net position. The remainder of net position for the proprietary funds is reported as follows: Invested in capital assets, net related debt ($200,468,509) and Restricted for debt service ($1,581,186). Operating revenues for proprietary activities totaled $141,149,254 for the fiscal year, an increase of 4.2 percent or $5,722,597 from the previous fiscal year. Operating expenses decreased $15,226,616 or 12.5 percent for the same period. Operating income was $34,134,507 for the fiscal year. The proprietary funds reported net non-operating expenses of $7,151,677 at the end of fiscal year 2015 as compared to net non- operating expenses of $6,602,314 in the previous fiscal year. The Proprietary Funds had an overall increase of $21,293,998 in net position for fiscal year 2015. Electric Fund At the end of the fiscal year, the unrestricted net position for the Electric Fund totaled $14,067,233. 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, 2015, Electric Fund working capital equaled approximately 28.1 percent of annual operating expenses, as compared to 11.5 percent at September 30, 2014. This increase was due to lower purchased power expenses in 2015. Electric Fund operating revenues increased by 3.4 percent ($3,340,917) during fiscal year 2015, while operating expenses decreased 18.5 percent ($17,638,392) during the same period. This resulted in operating income of $23,651,186. The operating income when combined with the net non-operating expenses, net capital contributions and transfers resulted in an increase in net position of $18,884,208 in the Electric Fund during the fiscal year. Water Fund Unrestricted net position for the Water Fund at September 30, 2015 totaled $6,035,011. At September 30, 2015, Water Fund working capital equaled approximately 57.3 percent of annual operating expenses, as compared to 109.4 percent at September 30, 2014. Water Fund operating revenues increased by 7.6 percent ($1,062,541) during fiscal year 2015. Operating expenses of $10,469,753 increased 13.8 percent ($1,270,187) over fiscal year 2014. This resulted in operating income of $4,542,959. The operating income when combined with the net non-operating expenses, net capital contributions and transfers resulted in an increase in net position of $1,228,919 in the Water Fund during the fiscal year. Wastewater Fund The Wastewater Fund’s unrestricted net position at the end of the fiscal year 2015 totaled $8,452,311. At September 30, 2015, Wastewater Fund working capital equaled approximately 147.4 percent of annual operating expenses, as compared to 161.7 percent at September 30, 2014. 23 Management’s Discussion and Analysis For the Fiscal Year Ended September 30, 2015 (Unaudited) City of College Station, Texas Operating revenues in Wastewater Fund were $14,915,404 or a $520,853 (3.6 percent) increase over the previous fiscal year. Operating expenses increased from $9,721,259 to $10,580,787 or 8.8 percent while operating income decreased by 7.2 percent from $4,673,292 to $4,334,617. The operating income when combined with the net non-operating expenses, net capital contributions and transfers resulted in an increase in net position of $862,340 in the Wastewater Fund during the fiscal year. Budgetary Highlights The final amended budget for fiscal year 2015 totaled $260,358,701 for all funds. In the General Fund the final amended budget showed a decrease in fund balance of $6,217,838. The actual change in fund balance (GAAP Basis) was an increase of $3,654,928. The following are some of the key factors in the change in fund balance: Revenues were higher than the estimate due to increases in property tax and sales tax revenues. Expenditures were overall lower due to reduced and deferred spending during the fiscal year. Some expenditures planned for 2015 will occur in 2016. 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 2015 to address these priorities. CAPITAL ASSETS The City of College Station’s investment in capital assets for its governmental and business-type activities as of September 30, 2015 amounted to $576,017,509 (net of accumulated depreciation). This investment in capital assets includes land, utility systems, building and building improvements, improvements other than buildings, machinery and equipment, infrastructure, and construction in progress. Capital Assets at Year End Net of Accumulated Depreciation Governmental Business-Type Activities Activities Total Land 34,864,726$ 690,750$ 35,555,476$ Utility systems - 309,240,311 309,240,311 Buildings and other improvements 26,096,513 3,758,848 29,855,361 Improvements other than buildings 24,366,370 - 24,366,370 Machinery and equipment 12,317,830 3,772,576 16,090,406 Infrastructure 135,626,317 - 135,626,317 Construction in progress 11,983,259 13,300,009 25,283,268 245,255,015$ 330,762,494$ 576,017,509$ 24 Management’s Discussion and Analysis For the Fiscal Year Ended September 30, 2015 (Unaudited) City of College Station, Texas Major capital projects completed by the City during the 2015 fiscal year include the following: Jones Butler Extension Cooner Street and Utility Rehabilitation Dominik Sidewalks from Texas to George Bush Dominik Sidewalks from George Bush to the Gables West Ridge/San Pedro Sidewalks Texas Avenue Sidewalks Barron Road Improvements – SH 40 to W.S. Phillips Parkway East District Maintenance Shop Wolf Pen Creek Restrooms Aerial Imagery Updates Network and Data Security Upgrades 30” Parallel Water Transmission Line West Side Sewer Royder/Live Oak Sewer Southwood Valley Substation Transformer Replacement Health Science Pkwy Electric Duct System Install W.S. Phillips Pkwy Overhead Line Extension 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 2015 fiscal year, the City of College Station had total debt outstanding of $247,115,000. Of this amount, $233,720,000 (94.6 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 $13,395,000 (5.4 percent), is revenue bonds secured by specified revenue sources from the City’s combined utility system. The City’s total debt decreased by $19,870,000 (7.4 percent) during the current fiscal year. The change in total debt was a result of the following: Retirement of $18,345,000 in general obligation improvement bonds and certificates of obligation, and the retirement of $1,525,000 in utility revenue bonds. The City’s General Obligation and Certificates of Obligation have an underlying rating of AA+ by Standard & Poor’s (“S&P”) and Aa2 by Moody’s Investors Service (“Moody’s”). The underlying ratings for the City’s revenue bonds are A+ by S&P and Aa2 by Moody’s. Additional information on the City’s long-term debt can be found in Note IV.H to the financial statements. Governmental Activities Business-Type Activities Total General Obligation Bonds 81,855,000$ 44,670,000$ 126,525,000$ Certificates of Obligation 19,890,000 87,305,000 107,195,000 Revenue Bonds - 13,395,000 13,395,000 101,745,000$ 145,370,000$ 247,115,000$ 2015 Year-End Outstanding Debt Payable 25 Management’s Discussion and Analysis For the Fiscal Year Ended September 30, 2015 (Unaudited) City of College Station, Texas PENSIONS AND RETIREE HEALTHCARE Effective in fiscal year 2015, the Governmental Accounting Standard Board (GASB) Statement No. 68, “Accounting and Financial Reporting for Pensions” created specific reporting requirements for pensions that are different than prior years. The reporting valuation provides a rigorous standard measure that can be used to compare the City’s pension liabilities to other governments from around the nation. The funding valuation is important as the actuarial methods used including strategies for repaying any unfunded actuarial accrued liabilities combined with the City’s history of making those contributions provides insights regarding the City’s commitment to and the effectiveness of its funding strategy. Information contained in the financial statements themselves including the first schedule of Required Supplementary Information (RSI), Schedule of Changes in Net Pension Liability and Related Ratios, is based on the reporting valuation. The second schedule in the RSI, Schedule of Contributions, is based on the funding valuation. On a reporting basis, the City’s financial statements reflect a Net Pension Liability as of September 30, 2015 of $22,106,844, which is 51% of the City’s annual covered payroll of $43,726,328. ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES Economic conditions remain positive in the City of College Station. Sales tax revenues have been strong for the past several years, and property values have continued to increase as well, with new construction continuing at a strong pace. Growth continues 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. In addition, the Century Square mixed-use development along University Drive is underway and is expected to include hotels; a conference center; office, living and retail space; as well as restaurants. There also continues to be activity in the Bio-Corridor. Multi-family construction continues to take place around the city as well. Plans for development continue in the Medical District in the southern part of the City east of Highway 6 and south of Rock Prairie Road. The City Council approved an Infrastructure and Economic Development Agreement designed to facilitate the installation of primary infrastructure needed to activate the larger area for private development. 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 hotel rooms under construction in College Station. The multi-purpose synthetic fields in Veterans Park were completed last year and the fields have been utilized for a variety of events including the popular 7 on 7 football tournament. The City again hosted the very successful Texas Amateur Athletic Federation Games of Texas, which attracted thousands of visitors to the region. These 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 redevelopment of Kyle Field was completed in time for the start of the 2015 football season. Enrollment continues to increase at Texas A&M University and is estimated to be over 59,000 for the fall semester. Construction of new buildings and facilities on campus continues to accommodate this growth. 26 Management’s Discussion and Analysis For the Fiscal Year Ended September 30, 2015 (Unaudited) City of College Station, Texas 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 2015 is $6,611,929,074. This is an increase of 6.4% over last year. This increase in value is due in part to new property values from new construction of $229,580,610 added to the tax rolls. Existing property values increased by 2.7% over 2015. Since 2010 taxable values have increased from approximately $5.4 billion to approximately $6.6 billion currently. Through September 2015 the local unemployment rate was 3.1%. This is below the state average of 4.4% and the national average of 4.9%. Sales and mixed drink beverage tax revenue, the largest revenue stream in the General Fund saw a positive increase of 7.1% in fiscal year 2015. The FY 2016 budget sets the strategic policy direction for the City and provides the funding to implement that direction for the year. This budget will allow the staff to continue to meet the needs of our citizens and visitors as the City continues to experience a sustained period of growth. This shows itself through continued growth in higher education, through a robust visitor and tourism economy, and all of the ancillary things this growth brings. While growth continues, there is also a need to maintain and improve existing infrastructure throughout the City. This budget is a roadmap for addressing the growth and infrastructure maintenance demands of the City into the future. Key factors influencing budget preparation Continued strength in the higher education sector of the economy. Growth in service demands in areas including Public Safety and Streets/Transportation. Increased tourism and visitor growth to the community. Maintenance and repair of existing facilities and infrastructure. Continued commitment to attracting and retaining a well-qualified, highly regarded workforce. Continuing the commitment to Economic Development efforts in College Station. Continued residential and commercial development throughout the city. Addressing Growth Providing additional Police, Fire and Emergency Medical Services for citizens and visitors. Maintaining existing infrastructure including the streets and traffic management systems, electric, water and wastewater utility systems, parks and recreation facilities, and other city facilities. Adding and expanding capital infrastructure including streets, electric, water and wastewater utility systems, parks and recreation facilities, and other city facilities to meet the service demands that accompany growth. Attracting and retaining a well-qualified workforce to provide excellent service. As the City continues to grow, we must respond to that growth in a sustainable and measured manner. We must be prudent with the limited available resources in an effort to maximize the services provided to citizens and visitors of College Station. 27 Management’s Discussion and Analysis For the Fiscal Year Ended September 30, 2015 (Unaudited) City of College Station, Texas Service Level Increases On a continual basis, the City looks at ways to streamline and considers organizational changes. This budget scrubbing is done each year as departments are asked to review current processes and identify efficiencies and reallocate resources that can result in improved or increased services with minimal or no cost increase. However, we also recognize that increased growth puts demands on resources and results in the need for service level increases. Below is a summary of some of the key service level increases that are included in the approved budget. Core Services and Infrastructure Police Department Additional resources are included in the Police Department budget to keep up with growth in the community. The budget includes four new positions and associated equipment: One Recruiting and Training Officer One Special Investigations Officer One Communications Operator One Community Enhancement Police Assistant These positions will allow the department to focus more resources on public safety as the City continues to grow. Fire Department The approved budget includes six firefighter positions to continue the staffing of a second ladder truck for the City. These positions are partially funded through the Assistance to Firefighters Grant, which was awarded to the Fire Department in August 2015. Funding is also included for the purchase of the ladder truck. This is the second of a multi-year plan to add a new ladder truck to be located at Station #6 on University Drive. Funds are also included for the purchase of automatic CPR devices. Funds have also been set aside for the replacement of the Self Contained Breathing Apparatus for all firefighters in FY 2017. Public Works Funds are included in the Public Works approved budget to maintain the City’s infrastructure. This includes $1,600,000 in increased funding for street repair throughout the City, of which $1,450,000 is one time funding. Funds are also included to address maintaining the City’s facilities. Two years ago a facilities assessment was completed that identified repairs that needed to be completed over the next several years. This budget includes approximately $1.9 million to continue addressing the maintenance and repairs identified in the assessment report. The approved budget also includes an additional Traffic Engineer position as part of the continued implementation of the Intelligent Transportation System (ITS) master plan. Electric Utility The Electric Utility budget includes funding for an Electric Meter Technician position and a Line Technician/Troubleman position. These positions are necessary to meet the growing demands of the utility. Funding is also included for substation painting – an important maintenance activity. 28 Management’s Discussion and Analysis For the Fiscal Year Ended September 30, 2015 (Unaudited) City of College Station, Texas Water Services The Water Services budget includes the addition of a Crew Leader position and Field Operator position. This completes a two-year plan to add an additional crew for water services that will be responsible for maintenance of the water distribution system and wastewater collection system. Funds are also included for maintenance activities and new equipment. Parks and Recreation Funds are included in the Parks and Recreation approved budget to address equipment needs for the Parks System as well as court resurfacing, replacement playground equipment and the repair and addition of various amenities. Many of these items have been identified in the Parks Asset Management Plan. Neighborhood Integrity Planning and Development Services Funds are included in the approved budget for the implementation of components of neighborhood plan projects that have been identified in recent years. Diverse Growing Economy Economic Development The approved budget includes funding for additional economic development efforts in College Station. This includes additional funding for the City’s Economic Development Division. Tax Rate The fiscal year 2016 budget was prepared using a tax rate of 45.25 cents per $100 assessed valuation. This is the same as the fiscal year 2015 tax rate. The debt service portion of the tax rate is 19.3052 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 25.9448 cents. This provides the necessary revenue to support the adopted General Fund budget. Utility Rates The fiscal year 2016 budget does not include utility rate increases Capital Projects The approved Capital Improvements Project Budget for FY16 totals $89,915,959 for all funds that include capital projects. This is an increase of approximately $56 million over the capital budget for FY15 and reflects some significant capital projects scheduled to be addressed this coming year. The appropriations are intended to provide budget authorization for the contracts that are expected to be brought to Council for approval in FY16. In some cases, the expenditures related to these contracts may be spread across multiple fiscal years and, in those cases, the appropriations for the fiscal year would exceed the anticipated expenditure for the fiscal year. The appropriations on capital projects will carry forward into subsequent fiscal years. 29 Management’s Discussion and Analysis For the Fiscal Year Ended September 30, 2015 (Unaudited) City of College Station, Texas The following are major projects in design, under construction or to be completed in 2016: Roadway and Utility Rehabilitation Projects including Graham Road, Munson Street, Francis Drive and Luther Street Rock Prairie Road West Widening Eisenhower Street Extension Lakeway Extension Greens Prairie Trail from FM 2154 through Royder Cain/Deacon Union Pacific Railroad Crossing Switch Design of FM 2818 Capacity Improvements Safety Improvements – Holik, Park Place, Anna and Glade Royder Road Expansion Signal at State Highway 40 and Victoria Intelligent Transportation System (ITS) Master Plan Implementation Lick Creek Hike and Bike Trail University Drive Pedestrian Improvements New Police Station Design Computer Aided Dispatch/Records Management System (CAD/RMS) Replacement Enterprise Resource Planning (ERP) System Replacement Library Expansion Lick Creek Nature Center Lincoln Center Addition Well #9 and Well # 9 Collection Line Area 2 Water Line Extension Eastgate Water and Wastewater Utility Rehabilitation Lick Creek Parallel Trunkline Carter Creek Wastewater Treatment Plant Centrifuge and Electrical Improvements Installation of 2nd Transformer at Northgate Substation Electric Transmission Line Reroute and Reconductor The 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, the Utility funds, and the Hotel Tax Fund. Associated operating and maintenance costs needed for the projects that will be operational in FY16 have been included in the approved budget. The City plans to issue debt for capital projects in 2016. 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 30 Governmental Activities Business-type Activities Total Assets Cash and cash equivalents 102,894,550$ 29,947,068$ 132,841,618$ Investments 10,219,867 2,974,036 13,193,903 Receivables (net of allow for uncollectible)5,625,268 19,657,534 25,282,802 Investments interest receivable 8,030 3,736 11,766 Inventories 6,488,178 2,610,840 9,099,018 Internal balance (3,994,411) 3,994,411 - Prepaids 16,670 - 16,670 Restricted assets Cash and cash equivalents - 18,172,000 18,172,000 Equity in investments - 1,805,038 1,805,038 Equity in joint venture - 13,572,308 13,572,308 Loans receivable 1,449,615 3,860,000 5,309,615 Capital assets (net of accum depreciation)- Land and construction in progress 46,847,985 13,990,759 60,838,744 Other capital assets (net of accum depreciation)198,407,030 316,771,735 515,178,765 Total assets 367,962,782 427,359,465 795,322,247 Deferred outflows of resources Deferred charge on pension 5,107,505 1,485,207 6,592,712 Deferred charge on refunding 1,502,183 1,192,558 2,694,741 Total deferred outflows of resources 6,609,688 2,677,765 9,287,453 Liabilities Accounts payable 2,904,002 12,953,448 15,857,450 Accrued liabilities 1,670,911 657,733 2,328,644 Retainage payable 160,036 394,321 554,357 Customer construction advances 753,960 - 753,960 Claims payable 1,973,042 - 1,973,042 Unearned revenues 951,162 21,677 972,839 Accrued interest payable 541,338 762,609 1,303,947 Refundable deposits 100,759 3,188,175 3,288,934 Compensated absences - current 225,927 56,744 282,671 Current portion of long-term 9,153,973 11,677,374 20,831,347 Bonds and certificate of obligation payable 97,515,943 142,299,056 239,814,999 Compensated absences - long-term 2,760,267 693,274 3,453,541 Other post employment benefits 7,844,506 2,309,747 10,154,253 Net pension obligation 17,126,614 4,980,230 22,106,844 Total liabilities 143,682,440 179,994,388 323,676,828 Deferred inflows of resources Deferred charge on pensions 727,423 211,527 938,950 Total deferred inflows of resources 727,423 211,527 938,950 Net position Net investment in capital assets 167,101,930 200,468,509 367,570,439 Restricted for: Debt service 2,814,048 1,581,186 4,395,234 Public safety 828,330 - 828,330 Community development 2,163,507 - 2,163,507 Tourism 8,663,166 - 8,663,166 Capital projects 38,426,832 - 38,426,832 Other purposes 2,479,031 - 2,479,031 Unrestricted 7,685,763 47,781,620 55,467,383 Total net position 230,162,607$ 249,831,315$ 479,993,922$ The notes to the financial statements are an integral part of this statement. CITY OF COLLEGE STATION, TEXAS Statement of Net Position September 30, 2015 31 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: Police 18,601,237$ 607,839$ 55,580$ -$ (17,937,818)$ -$ (17,937,818)$ Fire 15,095,073 1,961,325 298,654 - (12,835,094) - (12,835,094) Public works 18,793,401 2,254,382 - 2,544,233 (13,994,786) - (13,994,786) Parks and recreation 9,884,737 1,652,014 453,577 998,295 (6,780,851) - (6,780,851) Library 1,213,820 - - - (1,213,820) - (1,213,820) Planning and development svcs 3,225,321 1,885,563 - - (1,339,758) - (1,339,758) Information technology 4,416,190 72 - - (4,416,118) - (4,416,118) Fiscal services 3,594,382 2,956,304 - - (638,078) - (638,078) General government 10,194,285 2,822,398 2,187,590 - (5,184,297) - (5,184,297) Interest on long-term debt 3,943,972 - - - (3,943,972) - (3,943,972) Unallocated depreciation 1,235,340 - - - (1,235,340) - (1,235,340) Total governmental activities 90,197,758 14,139,897 2,995,401 3,542,528 (69,519,932) - (69,519,932) Business-type activities: Electric 79,828,415 101,432,340 - 4,006,336 - 25,610,261 25,610,261 Water 13,082,761 15,069,720 - 2,088,029 - 4,074,988 4,074,988 Wastewater 12,437,020 13,864,099 - 2,007,222 - 3,434,301 3,434,301 Sanitation 7,786,244 8,845,145 668,322 1,472,527 - 3,199,750 3,199,750 Northgate parking 953,681 1,435,290 - 22,699 - 504,308 504,308 Total business-type activities 114,088,121 140,646,594 668,322 9,596,813 - 36,823,608 36,823,608 Total primary government 204,285,879$ 154,786,491$ 3,663,723$ 13,139,341$ (69,519,932) 36,823,608 (32,696,324) General revenue: Property taxes 30,936,581 - 30,936,581 Sales taxes 26,687,963 - 26,687,963 Other taxes 8,604,517 - 8,604,517 Unrestricted investment earnings 379,537 187,322 566,859 Gain on sale of capital assets 6,818,583 - 6,818,583 Transfers 13,037,208 (13,037,208) - Total general revenues and transfers 86,464,389 (12,849,886) 73,614,503 Change in net position 16,944,457 23,973,722 40,918,179 Net position - beginning 217,123,245 228,537,318 445,660,563 Prior period adjustment (3,905,095) (2,679,725) (6,584,820) Net position - ending 230,162,607$ 249,831,315$ 479,993,922$ 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, 2015 32 General Debt Service Streets Projects Other Governmental Funds Total Governmental Funds Assets Current assets Cash and cash equivalents 20,913,630$ 2,560,216$ 18,656,421$ 41,467,068$ 83,597,335$ Equity in investments 2,076,644 254,308 1,853,156 4,118,954 8,303,062 Receivables (net of allow for uncollectible)3,805,692 533,207 345,997 1,005,425 5,690,321 Investments interest receivable 1,670 199 1,449 3,215 6,533 Inventories 49,509 - - 6,244,189 6,293,698 Prepaid costs 14,170 - - - 14,170 Loans receivable - - - 1,449,615 1,449,615 Total assets 26,861,315$ 3,347,930$ 20,857,023$ 54,288,466$ 105,354,734$ Liabilities Accounts payable 794,803$ 675$ 733,580$ 280,303$ 1,809,361$ Accrued liabilities 1,602,822 - - 35,398 1,638,220 Retainage payable - - 94,637 60,577 155,214 Customer construction advances 752,760 - 1,200 - 753,960 Refundable deposits 100,759 - - - 100,759 Total liabilities 3,251,144 675 829,417 376,278 4,457,514 Deferred inflows of resources Unavailable revenue-loans receivable - - - 211,738 211,738 Unavailable revenue-property taxes 554,073 533,207 - - 1,087,280 Unavailable revenue-other 633,034 - 345,997 19,142 998,173 Total deferred inflows of resources 1,187,107 533,207 345,997 230,880 2,297,191 Fund balances Nonspendable 63,679 - - 6,244,189 6,307,868 Restricted - 2,814,048 19,681,609 32,644,246 55,139,903 Committed - -- 14,792,873 14,792,873 Assigned 2,433,744 - - - 2,433,744 Unassigned 19,925,641 - - - 19,925,641 Total fund balances 22,423,064 2,814,048 19,681,609 53,681,308 98,600,029 Total liabilities, deferred inflows of resources and fund balances 26,861,315$ 3,347,930$ 20,857,023$ 54,288,466$ 105,354,734$ The notes to the financial statements are an integral part of this statement. CITY OF COLLEGE STATION, TEXAS Balance Sheet Governmental Funds September 30, 2015 33 Total fund balance per balance sheet 98,600,029$ 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 235,924,238 Deferred outflows of resources not reported in the governmental funds: Pension contributions after measurement date 3,519,628$ Difference in projected and actual earnings 1,587,877 Deferred charges on debt refundings 1,502,183 6,609,688 Deferred inflows of resources not reported in the governmental funds: Difference in expected and actual experience (727,423) 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 (10,343,423) Due in more than one year (124,603,719) (134,947,142) Interest payable on long-term debt does not require current financial resources and is not reported in the governmental funds balance sheet.(541,338) Allowance for loans receivable (72,663) Other long-term assets are not available to pay for current period expenditures and, therefore, are reported as unavailable revenue in the funds 2,297,191 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 30,767,837 Liabilities (3,753,399) Net amount allocated to business-type activities (3,994,411) 23,020,027 Net position of governmental activities 230,162,607$ 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, 2015 34 General Debt Service Streets Projects Other Governmental Funds Total Governmental Funds Revenues Ad valorem taxes 17,000,439$ 12,655,920$ -$ 192,941$ 29,849,300$ Sales taxes 26,687,963 - - - 26,687,963 Other taxes 3,061,718 - - 5,542,799 8,604,517 Licenses and permits 1,500,777 - - - 1,500,777 Intergovernmental 355,083 - 187,020 2,192,660 2,734,763 Charges for services 3,572,684 - -2,746,038 6,318,722 Fines, forfeits, and penalties 2,693,647 - -206,549 2,900,196 Investment income 116,074 19,417 90,309 153,740 379,540 Rents and royalties 136,228 - - - 136,228 Contributions 1,251 - - 1,444,702 1,445,953 Other 3,252,310 - 107,897 26,724 3,386,931 Total revenues 58,378,174 12,675,337 385,226 12,506,153 83,944,890 Expenditures Current Police 18,533,889 - - 13,905 18,547,794 Fire 14,881,983 - - - 14,881,983 Public works 9,156,070 - - 1,116,465 10,272,535 Parks and recreation 8,194,670 - - 352,413 8,547,083 Library 1,138,568 - - - 1,138,568 Planning and development services 3,106,143 - - 140,288 3,246,431 Information technology 4,112,987 - - - 4,112,987 Fiscal services 3,314,990 - - 253,367 3,568,357 General government 4,853,358 - - 1,062,753 5,916,111 Contributions 1,187,500 - - 2,424,260 3,611,760 Other 217,114 - - 4,943 222,057 Capital outlay 129,896 - 5,310,016 4,214,597 9,654,509 Debt service Principal retirement - 9,110,000 - - 9,110,000 Interest payments - 4,220,656 - - 4,220,656 Debt issuance costs - 7,862 - - 7,862 Intergovernmental - -151,289 - 151,289 Total expenditures 68,827,168 13,338,518 5,461,305 9,582,991 97,209,982 Excess (deficiency) of revenues over (under) expenditures (10,448,994) (663,181) (5,076,079) 2,923,162 (13,265,092) Other financing sources (uses) Sale of capital assets 8,974,205 - - - 8,974,205 Transfers In 15,094,866 262,795 1,739,457 10,755,812 27,852,930 Transfers out (11,441,262) - (550,974) (2,823,486) (14,815,722) Total other financing sources (uses)12,627,809 262,795 1,188,483 7,932,326 22,011,413 Net change in fund balance 2,178,815 (400,386) (3,887,596) 10,855,488 8,746,321 Fund balances, October 1 20,244,249 3,214,434 23,569,205 42,825,820 89,853,708 Fund balances, September 30 22,423,064$ 2,814,048$ 19,681,609$ 53,681,308$ 98,600,029$ 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, 2015 35 Net change in fund balance - total governmental funds 8,746,321$ 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.9,654,509 Governmental funds do not recogonize the total amount of revenue recognized in the government-wide statement of activities related to the sale of redevelopment home properties 17,210 The effect of various miscellaneous transactions involving capital assets (e.g., sales, trade ins, and capital contributions) is to increase/decrease net assets.701,900 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. 984,322 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.493,973 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.(13,467,977) 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. Bond principal retirement 9,110,000 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 (210,439)$ Net pension obligation 685,782 Other post retirement benefits (783,853) (308,510) 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 1,221,699 Net amount allocated to business activities (208,990) 1,012,709 Change in net position of governmental activities 16,944,457$ 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, 2015 36 Governmental Activities Electric Water Wastewater Other Enterprise Funds Total Enterprise Funds Internal Service Funds Assets Current assets Cash and cash equivalents 18,529,840$ 3,761,342$ 5,873,539$ 1,782,347$ 29,947,068$ 19,675,355$ Investments 1,840,461 373,536 583,383 176,656 2,974,036 1,954,097 Restricted assets Cash and cash equivalents 4,047,183 3,921,509 10,203,308 - 18,172,000 - Investments 402,010 389,526 1,013,502 - 1,805,038 - Receivables (net of allow for uncollectible)14,042,244 2,569,341 1,862,776 1,183,173 19,657,534 73,772 Investments interest receivable 1,753 597 1,248 138 3,736 1,528 Inventories 2,175,033 385,623 23,165 27,019 2,610,840 194,480 Prepaid costs - - - - - 2,500 Total current assets 41,038,524 11,401,474 19,560,921 3,169,333 75,170,252 21,901,732 Noncurrent assets Equity in joint venture - - - 13,572,308 13,572,308 - Loans receivable - - - 3,860,000 3,860,000 - Capital assets Utility plant 192,487,181 176,715,471 137,872,507 - 507,075,159 - Buildings - - - 5,737,679 5,737,679 786,525 Machinery and equipment 341,663 227,775 113,888 6,352,616 7,035,942 24,662,001 Less accumulated depreciation (87,580,758) (56,879,051) (53,879,581) (4,737,655) (203,077,045) (15,902,152) Construction in progress 2,987,104 5,290,243 4,935,673 86,989 13,300,009 - Land - - - 690,750 690,750 - Total capital assets 108,235,190 125,354,438 89,042,487 8,130,379 330,762,494 9,546,374 Total noncurrent assets 108,235,190 125,354,438 89,042,487 25,562,687 348,194,802 9,546,374 Total assets 149,273,714 136,755,912 108,603,408 28,732,020 423,365,054 31,448,106 Deferred outflows of resources Deferred charge on pensions 697,109 272,435 264,541 251,122 1,485,207 246,560 Deferred charge on refunding 509,996 469,564 168,288 44,710 1,192,558 - Total deferred outflows of resources 1,207,105 741,999 432,829 295,832 2,677,765 246,560 Liabilities Current liabilities Accounts payable 11,444,509 1,044,928 236,202 227,809 12,953,448 1,099,995 Accrued liabilities 382,594 65,169 80,358 129,612 657,733 70,270 Unearned revenue - other - - - 21,677 21,677 - Compensated absences 25,139 8,986 12,877 9,742 56,744 8,692 Retainage payable 212,624 136,978 38,477 6,242 394,321 4,822 Claims payable - - - - - 1,973,042 Payable from restricted assets Accrued interest payable 290,189 240,077 208,263 24,080 762,609 - Refundable deposits 2,845,842 317,364 20,769 4,200 3,188,175 - Certificates of obligation 2,114,905 1,012,695 955,013 250,000 4,332,613 - General obligation bonds 1,823,832 2,094,459 2,178,296 423,174 6,519,761 - Revenue bonds 111,186 478,100 235,714 - 825,000 - Total current liabilities 19,250,820 5,398,756 3,965,969 1,096,536 29,712,081 3,156,821 Noncurrent liabilities Certificates of obligation 42,438,031 18,994,767 21,998,515 3,610,000 87,041,313 - General obligation bonds 14,362,584 15,507,256 11,733,381 1,084,522 42,687,743 - Revenue bonds 1,694,071 7,284,501 3,591,428 - 12,570,000 Compensated absences 307,138 109,781 157,331 119,024 693,274 106,200 Post employment benefits 1,032,782 383,888 508,476 384,601 2,309,747 412,711 Net pension obligation 2,337,564 913,535 887,064 842,067 4,980,230 826,772 Total noncurrent liabilites 62,172,170 43,193,728 38,876,195 6,040,214 150,282,307 1,345,683 Total liabilities 81,422,990 48,592,484 42,842,164 7,136,750 179,994,388 4,502,504 Deferred inflows of resources Deferred charge on pensions 99,284 38,801 37,677 35,765 211,527 35,115 Total deferred inflows of resources 99,284 38,801 37,677 35,765 211,527 35,115 Net position Net investment in capital assets 54,455,379 82,266,006 57,124,441 6,622,683 200,468,509 9,546,374 Restricted for: Debt service 435,933 565,609 579,644 - 1,581,186 - Unrestricted 14,067,233 6,035,011 8,452,311 15,232,654 43,787,209 17,610,673 Total net position 68,958,545$ 88,866,626$ 66,156,396$ 21,855,337$ 245,836,904 27,157,047$ Adjustment to reflect the consolidation of internal services fund activities related to enterprise funds 3,994,411 Net position of business-type activities 249,831,315$ 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, 2015 37 Governmental Activities Electric Water Wastewater Other Enterprise Funds Total Enterprise Funds Internal Service Funds Operating revenues Intergovernmental -$ -$ -$ 5,500$ 5,500$ -$ Charges for services 98,763,293 14,185,870 14,547,098 9,839,065 137,335,326 9,255,178 Fines, forfeits, and penalties - - - 229,457 229,457 - Premiums - - - - - 10,850,350 Rents and royalties 3,563 706 - - 4,269 - Other 2,347,427 826,136 368,306 32,833 3,574,702 318,132 Total operating revenues 101,114,283 15,012,712 14,915,404 10,106,855 141,149,254 20,423,660 Operating expenses Electric operations 70,909,104 - - - 70,909,104 - Salaries and benefits - 2,283,067 2,418,413 2,451,690 7,153,170 2,498,234 Supplies - 572,274 942,873 421,810 1,936,957 955,266 Maintenance - 78,075 192,890 664,294 935,259 45,519 Purchased professional services - 469,327 279,752 854,646 1,603,725 189,666 Purchased property services - 1,247,935 1,105,212 1,504,180 3,857,327 49,475 Other purchased services - 269,881 573,575 1,429,620 2,273,076 790,940 Claims - -- - - 7,906,221 Administration fee - -- - - 2,123,209 Contributions - -- 40,729 40,729 2,267,479 Premiums - -- - - 1,701,237 Depreciation 6,086,048 5,339,673 5,008,103 1,111,015 17,544,839 2,117,042 Other 467,945 209,521 59,969 23,126 760,561 367,935 Total operating expenses 77,463,097 10,469,753 10,580,787 8,501,110 107,014,747 21,012,223 Operating income (loss)23,651,186 4,542,959 4,334,617 1,605,745 34,134,507 (588,563) Nonoperating revenues (expenses) Investment income 71,155 40,226 69,042 6,899 187,322 96,325 Gain (loss) on disposal of assets (16,516) (187,383) (1,312,630) - (1,516,529) 45,451 Earnings in joint venture - - - 662,822 662,822 - Interest expense (2,496,009) (1,948,160) (1,615,489) (65,157) (6,124,815) - Other, net 331,866 (493,179) (65,082) (134,082) (360,477) 1,366,623 Total nonoperating revenues (expenses)(2,109,504) (2,588,496) (2,924,159) 470,482 (7,151,677) 1,508,399 Income before capital contributions and transfers 21,541,682 1,954,463 1,410,458 2,076,227 26,982,830 919,836 Capital contributions and transfers Capital contributions 4,006,336 2,088,029 2,007,222 1,495,226 9,596,813 104,983 Transfers in 738,495 1,196 773 218,401 958,865 266,000 Transfers out (7,402,305) (2,814,769) (2,556,113) (1,222,886) (13,996,073) (69,120) Total capital contributions and transfers (2,657,474) (725,544) (548,118) 490,741 (3,440,395) 301,863 Change in net position 18,884,208 1,228,919 862,340 2,566,968 23,542,435 1,221,699 Beginning net position 51,091,592 88,028,965 65,587,428 20,043,911 26,280,705 Prior period adjustment (1,017,255) (391,258) (293,372) (755,542) (2,457,427) (345,357) Ending net position 68,958,545$ 88,866,626$ 66,156,396$ 21,855,337$ 27,157,047$ Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds 208,990 Change in net position of business-type activities 21,293,998$ 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, 2015 Business-type Activities - Enterprise Funds 38 Governmental Activities Other Total Internal Enterprise Enterprise Service Electric Water Wastewater Funds Funds Funds Cash flows from operating activities: 100,057,395$ 14,283,746$ 14,685,865$ 9,707,532$ 138,734,538$ 20,395,322$ (72,980,199) (2,947,576) (3,986,442) (6,044,418) (85,958,635) (16,221,997) (4,049,735) (1,468,181) (1,792,050) (1,785,528) (9,095,494) (1,907,008) (69,042) (22,531) 6,684 - (84,889) - - (493,179) (65,082) (146,351) (704,612) (23,114) Cash received from customers Cash payments to suppliers for goods and services Cash payments to employees for services Customer deposits received (refunded) Cash paid for miscellaneous services Cash received for miscellaneous revenues 331,866 - - 12,269 344,135 1,389,737 Net cash provided (used) by operating activities 23,290,285 9,352,279 8,848,975 1,743,504 43,235,043 3,632,940 Cash flows from noncapital financing activities: Transfers in from other funds 738,495 1,196 773 218,401 958,865 266,000 Transfers out to other funds (7,402,305) (2,814,769) (2,556,113) (1,222,886) (13,996,073) (69,120) Net cash provided (used) by noncapital financing activities (6,663,810) (2,813,573) (2,555,340) (1,004,485) (13,037,208) 196,880 Cash flows from capital and related financing activities: Acquisition and construction of capital assets (10,479,159) (7,362,204) (4,150,019) (1,220,851) (23,212,233) (3,702,439) Capital grants and contributions 4,006,336 2,088,029 2,007,222 1,495,226 9,596,813 104,983 Proceeds from sale of assets - - - - - 45,451 Principal paid on certificates of obligation and general obligation bonds (3,930,057) (3,685,520) (3,145,571) (401,996) (11,163,144) - Interest paid on certificates of obligation and general obligation bonds (2,437,208) (1,892,402) (1,589,894) (67,553) (5,987,057) - Net cash provided (used) by capital and related financing activities (12,840,088) (10,852,097) (6,878,262) (195,174) (30,765,621) (3,552,005) Cash flows from investing activities: Purchase of investments (4,473,692) (1,526,840) (3,197,415) (347,329) (9,545,276) (3,830,393) Proceeds from sale and maturities of investment securities 4,614,834 2,212,633 3,662,384 335,033 10,824,884 4,356,968 Investment income 69,402 39,629 67,794 6,761 183,586 94,797 Net cash provided (used) by investing activities 210,544 725,422 532,763 (5,535) 1,463,194 621,372 Net increase (decrease) in cash and cash equivalents 3,996,931 (3,587,969) (51,864) 538,310 895,408 899,187 Cash and cash equivalents, Oct. 1 18,580,092 11,270,820 16,128,711 1,244,037 47,223,660 18,776,168 Cash and cash equivalents, Sept. 30 22,577,023$ 7,682,851$ 16,076,847$ 1,782,347$ 48,119,068$ 19,675,355$ Reconciliation of operating income to net cash Provided by operating activities: Operating income 23,651,186$ 4,542,959$ 4,334,617$ 1,605,745$ 34,134,507$ (588,563)$ Adjustment to reconcile operating income to net cash provided (used) by operating activities: Depreciation, bad debt expense, inventory loss 6,086,048 5,339,673 5,008,103 1,111,015 17,544,839 2,117,042 Miscellaneous nonoperating revenues 331,866 - - 12,269 344,135 1,389,737 Miscellaneous nonoperating expenses - (493,179) (65,082) (146,351) (704,612) (23,114) Changes in deferred inflows and outflows (597,825) (233,634) (226,864) (193,680) (1,252,003) (211,445) Changes in assets and liabilities: Change in accounts receivable (1,056,888) (728,966) (229,539) (257,360) (2,272,753) (28,338) Change in inventory (359,903) (43,555) 6,670 (21,378) (418,166) (78,899) Change in prepaid costs - - - - - (2,500) Change in accounts payable (5,688,899) 556,615 (324,242) (144,292) (5,600,818) 494,247 Change in refundable deposits (69,042) (22,531) 6,684 - (84,889) - Cahange in retaingage payable - - - - - 4,822 Change in claims payable - - - - - 322,406 Change in accrued liabilities 58,639 17,834 16,606 20,393 113,472 3,921 Change in deferred revenue - - - (141,963) (141,963) - Change in accrued vacation 77,219 14,837 7,672 12,928 112,656 16,048 Change in OPEB 201,437 104,074 72,201 59,881 437,593 38,743 Change in net pension obligation 656,447 298,152 242,149 (173,703) 1,023,045 178,833 Total adjustments (360,901) 4,809,320 4,514,358 137,759 9,100,536 4,221,503 Net cash provided (used) by operating activities 23,290,285$ 9,352,279$ 8,848,975$ 1,743,504$ 43,235,043$ 3,632,940$ There were no material noncash investing, capital, and financing activities for the year ended September 30, 2015. 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, 2015 39 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2015 City of College Station, Texas 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 40 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2015 City of College Station, Texas 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. 41 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2015 City of College Station, Texas 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 2014 for the fiscal year ending September 30, 2015. 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 the Assistant City Manager shall designate the City’s Investment Officer with whom responsibility and authority for investment transactions reside. 42 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2015 City of College Station, Texas 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 are Cemetery plots which are 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 are in the non-major governmental Cemetery funds and are reported as inventory in the financial statements and accounted for using the purchases method. Payments made to vendors for services that will benefit periods beyond September 30, 2015, 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. 43 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2015 City of College Station, Texas 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. 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 44 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2015 City of College Station, Texas 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, 2015 were as follows: 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. Pensions For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the Fiduciary Net Position of the Texas Municipal Retirement System (TMRS) and additions to/deductions from TMRS’s Fiduciary Net Position have been determined on the same basis as they are reported by TMRS. For this purpose, plan contributions are recognized in the period that compensation is reported for the employee, which is when contributions are legally due. Benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. 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: Amount Due Amount Due Beginning Total Ending Within One Greater than Activity Type:Balance Earned Paid Balance Year One Year Governmental $2,822,263 $377,576 ($213,645) $2,986,194 $225,927 $2,760,267 Business-type 637,362 160,904 (48,248) 750,018 56,744 693,274 Total $3,459,625 $538,480 ($261,893) $3,736,212 $282,671 $3,453,541 45 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2015 City of College Station, Texas 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 in the General Fund. 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 the amount does not exceed $50,000. 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 46 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2015 City of College Station, Texas 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 of 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 two budget amendments during fiscal year 2015. These two budget amendments included the following appropriations: Encumbrance Roll $3,008,450 City Gateway project 150,000 TAMU Game Day Traffic Control Rental/Purchase 295,000 Drainage Boom Mower 66,000 PD & Administrative Office Space 41,000 MDT Replacement 99,553 Fire Department Hazardous Materials Vehicle 691,000 Annual Imagery Updates 116,000 Well Field Fence and Gate Improvements 69,200 Electric Substation Transformer 1,150,000 Property & Casualty Fund Defense Costs 1,367,463 Mobile Computing Infrastructure 96,500 Debt Service Fund debt service 100,000 Fleet Maintenance Fund budget adjust 20,000 $7,270,166 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. 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. 47 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2015 City of College Station, Texas B.Excess of Expenditures over Appropriations The amounts of any excesses of expenditures over appropriations during fiscal year 2015 and the funds in which they occurred are as follows: Fund Amount General Government Projects $ 1,410,147 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 $ 74,164,958 1 US Agency 6,012,420 544 Money Market Accounts 50,794,279 1 Certificates of Deposits 9,030,657 467 Texas Local Government Investment Pool 26,010,245 1 $166,012,559 Portfolio Weighted Average Maturity 46 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 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 48 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2015 City of College Station, Texas 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, 2015, 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, 2015, 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. 49 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2015 City of College Station, Texas B.Receivables Receivables as of year-end for the City's individual major funds, non-major and internal service funds in the aggregate, including the applicable allowances for uncollectible accounts, are as follows: 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; $715,263 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 $234,352. 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 2016 $ 250,000 $ 156,560 2017-2020 900,000 548,529 2021-2025 1,365,000 462,767 2026-2030 1,345,000 125,573 $3,860,000 $1,293,429 Debt Street Internal Governmental activities:General Service Projects Nonmajor Service Fund Total Taxes: Property 554,073$ 533,207$ -$ -$ -$ 1,087,280$ Beverage 130,913 - - - - 130,913 Sales 2,086,401 - - - - 2,086,401 Subtotal taxes 2,771,387 533,207 - - - 3,304,594 Grants 736,317 736,317 Charges for services 983,397 - 345,997 294,735 115,630 1,739,759 Loans - - - 1,449,615 - 1,449,615 Miscellaneous 65,104 - - - - 65,104 Total gross governmental 3,819,888 533,207 345,997 2,480,667 115,630 7,295,389 Less allowance for uncollectible accounts (14,196) - - (25,627) (41,858) (81,681) Net total receivables 3,805,692$ 533,207$ 345,997$ 2,455,040$ 73,772$ 7,213,708$ Internal Business-type activities:Electric Water Wastewater Nonmajor Service Fund Total Charges for services 15,611,861$ 2,652,163$ 2,030,457$ 1,277,896$ -$ 21,572,377$ Less allowance for uncollectible accounts (1,569,617) (82,822) (167,681) (94,723) - (1,914,843) Net total receivables 14,042,244$ 2,569,341$ 1,862,776$ 1,183,173$ -$ 19,657,534$ 50 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2015 City of College Station, Texas C.Capital Assets Capital asset activity for the year ended September 30, 2015 was as follows: 51 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2015 City of College Station, Texas Depreciation expense for fiscal year 2015 was charged as follows: Police $139,681 Fire 263,199 Public Works 9,340,487 Parks and Recreation 1,435,299 Library 75,252 Planning and Development Services 8,014 Information Technology 388,020 Fiscal Services 52,534 General Government 267,308 Non-departmental 1,238,673 Capital Assets held by Internal Service Fund 2,070,059 Governmental Activities Depreciation Expense $15,278,526 Electric $6,086,048 Water 5,339,673 Wasterwater 5,008,103 Sanitation 861,009 Northgate Parking 250,006 Business-Type Depreciation Expense $17,544,839 D.Interfund Transactions Transfers between funds during the year were as follows: 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. 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. In October 2014 the City sold the property on University Drive known as the Chimney Hill property for $7,500,000. The proceeds from the sale, along with the revenue received from rent, net of expenses from the property from date of purchase through October 2014 were placed in the Hotel Tax Fund. At the time of the sale, the building carried a net value of $2,699,196 and $385,599 in accumulated depreciation. Transfers In Transfers Out Governmental Activities, net Business-type Activities, net Governmental Activities: General Fund 15,094,866$ (11,441,262)$ 3,653,604$ -$ Debt Service Fund 262,795 - 262,795 - Streets Projects 1,739,457 (550,974) 1,188,483 - Other Nonmajor Governmental Funds 10,755,812 (2,823,486) 7,932,326 - Business-type Activities: Enterprise Funds: Electric 738,495 (7,402,305) - (6,663,810) Water 1,196 (2,814,769) - (2,813,573) Wastewater 773 (2,556,113) - (2,555,340) Other Nonmajor Enterprise Funds 218,401 (1,222,886) - (1,004,485) 28,811,795$ (28,811,795)$ 13,037,208$ (13,037,208)$ 52 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2015 City of College Station, Texas F.Deferred Outflows/Inflows of Resources – Other than Pensions In addition to assets, the statement of financial position and/or balance sheet 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, 2015, the City reported $1,502,183 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 and/or balance sheet 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 one 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: These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. 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 $633,034. G.Prior Period Adjustment The Governmental Project for Veteran’s Park, was completed in FY15 but was not posted to construction in progress in the General Fixed Assets Fund. A portion of the expenditures should have been recognized in FY14. A prior period adjustment was made to reflect the expenditures and the related depreciation expense that should have been recorded in fiscal year 2014. The prior period adjustment increased net position by $3,704,448. An error was discovered in the calculation of depreciation for Sanitation Vehicles, the vehicles were depreciated at 10 years instead of 5 years. A prior period adjustment was made to reflect the correct depreciation in prior years, which decreased net position by $389,360. The GASB has issued Statement No. 68 “Accounting and Financial Reporting for Pensions” which became effective for fiscal year 2015. This statement changes the focus of pension accounting for employers from whether they are responsibly funding their plan over time to a point-in-time liability that is reflected in the employer’s financial statements for any actuarially unfunded portion of pension benefits earned to date. The GASB has also issued Statement No. 71 “Pension Transition for Contributions Made Subsequent to the Measurement Date” which became effective for fiscal year 2015. This statement relates to amounts associated with contributions made by a local government employer to a defined benefit pension plan after the measurement date of the government’s beginning net pension liability. Unavailable Unearned Total Property Tax $1,087,280 -$1,087,280 Loans Receivable 211,738 -211,738 Other - Cemetery Plot Loans Receivable 19,142 -19,142 Other - Street Funds 345,997 -345,997 Other - General Fund 633,034 -633,034 $2,297,191 -$ $2,297,191 53 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2015 City of College Station, Texas The implementation of Statement No. 68 and Statement No. 71 resulted in the restatement of beginning net position for the elimination of the previously reported net pension obligation, the recording of the beginning net pension liability and the beginning deferred outflow for contributions made after the measurement date. The prior period adjustment decreased net position by $9,899,908. H.Long-Term Debt A summary of long-term debt transactions, including current portion, for the year ended September 30, 2015 follows: Due to implementation of GASB No. 63 and 65, deferred loss from refunding transactions have been reclassified from a liability to a deferred outflow of resources and is no longer presented in the long-term debt table presented above. Internal service funds predominantly serve the governmental funds. All internal service funds, except for the utility customer service fund, are included as part of the above totals for governmental activities. Amounts Beginning Incurred/Matured/ Ending Due Within Balance Issued Retired Balance One Year Governmental activities: General obligation bonds 89,050,000$ -$ 7,195,000$ 81,855,000$ 7,145,000$ Certificates of obligation 21,805,000 -1,915,000 19,890,000 1,515,000 Premium/discount 5,418,887 -493,971 4,924,916 493,973 Governmental activity Long term debt 116,273,887 -9,603,971 106,669,916 9,153,973 Business type activities: General obligation bonds 49,900,000 -5,230,000 44,670,000 5,957,900 Certificates of obligation 91,310,000 -4,005,000 87,305,000 4,100,000 Utility revenue bonds 14,920,000 -1,525,000 13,395,000 825,000 Premium/discount 9,400,904 -794,474 8,606,430 794,474 Business type activity Long term debt 165,530,904$ -$ 11,554,474$ 153,976,430$ 11,677,374$ 54 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2015 City of College Station, Texas Long-term debt at September 30, 2015 includes the following individual issues (not including unamortized premiums or discounts): Interest Issue Maturi ty Original Net Rate (%)Date Date Issue Retirement Outstanding General Obligation Bonds: 2006 Issue 4.375-6.375 7/1/06 2/15/26 7,375,000$ 7,375,000$ -$ 2006 Issue - Refunding 4.00-5.00 12/1/06 2/15/18 10,255,000 6,765,000 3,490,000 2007 Issue 4.25-6.25 9/1/07 2/15/27 3,930,000 1,870,000 2,060,000 2008 Issue 4.0 - 5.0 9/1/08 2/15/28 9,455,000 3,115,000 6,340,000 2009 Issue 3.5 - 4.0 7/15/09 2/15/21 3,335,000 680,000 2,655,000 2009 Issue - Refunding 2.00-4.00 11/15/09 2/15/20 4,265,000 2,595,000 1,670,000 2010 Issue 2.00-3.50 8/15/10 2/15/30 19,635,000 3,740,000 15,895,000 2010 Issue - Refunding 3.0-5.0% 11/15/10 2/15/22 11,245,000 4,205,000 7,040,000 2011 Issue .25-1.6% 9/15/11 2/15/18 1,960,000 1,315,000 645,000 2012 Issue & Refunding 2.0-5.0% 6/1/12 2/15/32 11,515,000 2,505,000 9,010,000 2013 Issue & Refunding 2.0-5.0% 8/15/13 2/15/33 14,505,000 1,995,000 12,510,000 2014 Issue & Refunding 2.0-5.0% 9/1/14 2/15/34 21,230,000 690,000 20,540,000 118,705,000 36,850,000 81,855,000 General Obligation Bonds - Business-type Activities: 2009 Issue - Refunding 2.00-4.00 11/15/09 2/15/20 3,830,000 2,335,000 1,495,000 2010 Issue - Refunding 3.0-5.0% 11/15/10 2/15/22 25,905,000 8,510,000 17,395,000 2012 Issue & Refunding 2.0-5.0% 6/1/12 2/15/32 9,570,000 2,810,000 6,760,000 2013 Issue & Refunding 2.0-5.0% 8/15/13 2/15/33 6,255,000 680,000 5,575,000 2014 Issue & Refunding 2.0-5.0% 9/1/14 2/15/34 14,635,000 1,190,000 13,445,000 60,195,000 15,525,000 44,670,000 Total General Obligation Bonds 178,900,000 52,375,000 126,525,000 Certificates of Obligation - Governmental Activities: 2006 Issue 4.375-6.375 7/1/06 2/15/26 8,325,000 8,325,000 - 2007 Issue 4.25-6.25 9/1/07 2/15/27 3,960,000 1,885,000 2,075,000 2008 Issue 3.25 - 5.0 9/1/08 2/15/28 22,855,000 15,870,000 6,985,000 2009 Issue 3.00-5.00 7/15/09 2/15/29 5,880,000 5,160,000 720,000 2010 Issue 2.00-3.50 8/15/10 2/15/30 1,050,000 885,000 165,000 2014 Issue 2.0-5.0% 9/1/14 2/15/34 10,665,000 720,000 9,945,000 52,735,000 32,845,000 19,890,000 55 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2015 City of College Station, Texas The annual requirements to amortize debt outstanding as of September 30, 2015 are as follows: Certificates of Obligation - Business-type Activities: 2008 Issue 3.25 - 5.0 9/1/08 2/15/28 15,925,000 3,940,000 11,985,000 2009 Issue 3.00-5.00 7/15/09 2/15/29 30,580,000 11,135,000 19,445,000 2010 Issue 2.00-3.50 8/15/10 2/15/30 2,850,000 500,000 2,350,000 2011 Issue 2.00-3.60 9/15/11 2/15/31 7,920,000 1,100,000 6,820,000 2012 Issue 2.0-5.0% 6/1/12 2/15/32 16,415,000 1,725,000 14,690,000 2013 Issue 2.0-5.0% 8/15/13 2/15/33 10,230,000 730,000 9,500,000 2014 Issue 2.0-5.0% 9/1/14 2/15/34 23,340,000 825,000 22,515,000 107,260,000 19,955,000 87,305,000 Total Certificates of Obligation 159,995,000 52,800,000 107,195,000 Utility Revenue Bonds: 2006 Issue 4.375-6.375 7/1/06 2/1/26 16,950,000 16,950,000 - 2007 Issue 4.00-5.75 9/1/07 2/1/27 18,665,000 5,270,000 13,395,000 35,615,000$ 22,220,000$ 13,395,000 Total Outstanding Bonds 247,115,000$ General Obligation Certificates of Obligation Year Ended September 30,Principal Interest Principal Interest 2016 7,452,100$ 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 2019 5,855,000 2,356,546 1,445,000 673,399 2020 6,135,000 2,097,772 1,450,000 612,702 2021-2025 25,390,000 7,255,893 7,605,000 2,060,743 2026-2030 17,755,000 2,606,166 3,865,000 640,844 2031-2034 5,570,000 375,681 1,210,000 124,750 82,162,100$ 23,363,711$ 19,890,000$ 6,493,035$ General Obligation Certificates of Obligation Utility Revenue Year Ended September 30,Principal Interest Principal Interest Principal Interest 2016 5,957,900$ 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 5,285,000 844,200 4,575,000 2,887,806 1,015,000 416,077 2021-2025 15,065,000 1,709,300 26,240,000 11,537,127 5,955,002 1,338,214 2026-2030 1,215,000 30,375 28,345,000 5,543,940 2,855,000 130,162 2031-2034 - - 11,495,000 944,405 - - 44,362,900$ 8,348,337$ 87,305,000$ 34,038,729$ 13,395,002$ 3,947,059$ Business-Type Activities Governmental Activities 56 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2015 City of College Station, Texas 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, 2015. 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. BVSWMA, Inc. has pledged to repay the $5,145,000 plus interest to the City of College Station. As of September 30, 2015 BVSWMA, Inc. owed the City $3,860,000. 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, 2015, 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, 2015, the City’s escrow balance for bonds defeased on December 1, 2011 was $2,018,838. The defeased bonds are not callable until February 15, 2019. 57 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2015 City of College Station, Texas I.Components of Fund Balance Fund balances for governmental funds at September 30, 2015 are as follows: General Debt Service Street Projects Other Total Fund Balances: Nonspendable: Assets Held for Resale -$ -$ -$ 6,244,189$ 6,244,189$ Inventories 49,509 - - - 49,509 Prepaids 14,170 - - - 14,170 Restricted for: Community and Neighborhood Parks - - - 4,677,553 4,677,553 Community Development - - - 1,928,499 1,928,499 Court Security Fee - - - 23,930 23,930 Court Technology Fee - - - 443,826 443,826 Debt Service - 2,814,048 - 2,814,048 Drainage - -- - General Government Capital Projects - -19,681,609 5,849,007 25,530,616 Hotel Occupancy Tax - -- 8,663,166 8,663,166 Juvenile Case Manager - -- 262,526 262,526 Parks and Recreation Capital Projects - -- 8,218,662 8,218,662 Police Seizure - -- 76,042 76,042 Wolf Pen Creek TIF - -- 1,258,814 1,258,814 Truancy Prevention - -- 22,005 22,005 West Medical District TIRZ No. 18 - -- 267,285 267,285 East Medical District TIRZ No. 19 - -- 2,044 2,044 PEG Access Channel - -- 385,976 385,976 Meyer Estate Gift - -- 564,912 564,912 Committed to: Texas Avenue Cemetery Endowment - - - 1,851,345 1,851,345 Memorial Cemetery - - - 1,544,978 1,544,978 Memorial Cemetery Endowment - - - 879,670 879,670 Drainage Infrastructure Improvements 3,101,638 3,101,638 Parks Infrastructure Improvements 7,415,241 7,415,241 Assigned: Other Purposes 2,433,744 - - - 2,433,744 Assigned to: Crime Prevention - - - - - Economic Development - - - - Efficiency Time Payment Fee - - - - Parks Xtra Education - - - - Unassigned:19,925,641 - - - 19,925,641 22,423,064$ 2,814,048$ 19,681,609$ 53,681,308$ 98,600,029$ 58 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2015 City of College Station, Texas 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 45.2500 cents per $100 of assessed valuation for the year ended September 30, 2015. 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 $165,000 per individual per year, with an aggregate attachment point for the last 12 months of $7,661,832. The liability for outstanding losses includes $1,336,795 for claims incurred but not reported as of September 30, 2015. In fiscal year 2015, 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 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 Division process Liability and Workers’ Compensation claims utilizing the services of Third Party Administrator Abercrombie, Simmons & Gillette (AS&G). 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 coverage through Allied World Insurance Company, A.M. Best rated A XV, and Colony Insurance Company, A.M. Best rated A XIII. Colony is also the City’s excess Workers’ Compensation carrier. The self-insured retention ("SIR") for 2015 was $500,000 per claim. Liabilities in the property and casualty fund and the Workers’ Compensation fund are reported to the carrier when a covered loss can be reasonably estimated to approach one-half of the City’s Self-Insured Retention. Liabilities include an amount for claims incurred but not reported. Based on the most recent actuarial study, the City has 59 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2015 City of College Station, Texas recorded a potential liability of $342,312 in the property and casualty fund and a potential liability of $293,935 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 2015 and 2014 are as follows: 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 bylaws 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. 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; 2015 2014 Unpaid Claims, October 1 $1,650,636 $1,641,547 Incurred Claims (including IBNR's)8,228,627 7,256,283 Claims Paid (7,906,221) (7,247,194) Unpaid Claims, September 30 $1,973,042 $1,650,636 60 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2015 City of College Station, Texas •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 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, 2015: 61 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2015 City of College Station, Texas 2015 2014 Current assets and other assets $14,233,143 $12,668,931 Capital Assets 26,637,834 26,362,273 Total assets 40,870,977 39,031,204 Current liabilities 1,613,893 898,617 Noncurrent liabilities 12,079,468 12,313,614 Total liabilities 13,693,361 13,212,231 Net investment in capital assets 18,627,834 17,892,273 Unrestricted 8,549,782 7,926,700 Total net position $27,177,616 $25,818,973 Revenues Landfill charges $ 7,932,876 $ 7,275,397 Compost facility revenue 298,033 340,070 Miscellaneous revenue 35,307 34,397 Total revenues 8,266.216 7,649,864 Operating expenses (6,686,814) (6,721,679) Interest expense (338,441) (353,784) Other non operating revenues (expenses) 117,682 8,331 Change in net position 1,358,643 582,732 Net position, beginning of year 25,818,973 25,236,241 Net position, end of year $27,177,616 $25,818,973 The City’s share of BVSWMA, Inc.’s net assets for fiscal year 2015 was $13,588,808. 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 of College Station participates as one of 860 plans in the nontraditional, joint contributory, hybrid defined benefit pension plan administered by the Texas Municipal Retirement System (TMRS). TMRS is an agency created by the State of Texas and administered in accordance with the TMRS Act, Subtitle G, Title 8, Texas Government Code (the TMRS Act) as an agent multiple-employer retirement system for municipal employees in the State of Texas. The TMRS Act places the general administration and management of the System with a six - member Board of Trustees. Although the Governor, with the advice and consent of the Senate, appoints the Board, TMRS is not fiscally dependent on the State of Texas. TMRS’s defined benefit pension plan is a tax- qualified plan under Section 401 (a) of the Internal Revenue Code. TMRS issues a publicly available comprehensive annual financial report (CAFR) that can be obtained at www.tmrs.com. All eligible employees of the city are required to participate in TMRS. TMRS provides retirement, disability, and death benefits. Benefit provisions are adopted by the governing body of the City, within the options available in the state statutes governing TMRS. At retirement, the benefit is calculated as if the sum of the employee’s contributions, with interest, and the city- financed monetary credits with interest were used to purchase an annuity. Members may choose to receive their retirement benefit in one of seven actuarially equivalent payments options. Members may also choose to receive a portion of their benefit as a Partial Lump Sum Distribution in an amount equal to 12, 24, or 36 monthly payments, which cannot exceed 75% of the member’s deposits and interest. 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: 62 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2015 City of College Station, Texas Employees covered by benefit terms At the December 31, 2014 valuation and measurement date, the following employees were covered by the benefit terms: Contributions The contribution rates for employees in TMRS are either 5%, 6%, or 7% of employee gross earnings, and the city matching percentages are either 100%, 150%, or 200%, both as adopted by the governing body of the city. Under the state law governing TMRS, the contribution rate for each city is determined annually by the actuary, using the Entry Age Normal (EAN) actuarial cost method. The actuarially determined rate is the estimated amount necessary to finance the cost of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees for the City of College Station were required to contribute 7% of their annual gross earnings during the fiscal year. The contribution rates for the City of College Station were 14% and 14% in calendar years 2014 and 2015, respectively. The city’s contributions to TMRS for fiscal year 2015 were $6,068,368 and were equal to the required contributions. Net Pension Liability The city’s Net Pension Liability (NPL) was measured as of December 31, 2014, and the Total Pension Liability (TPL) used to calculate the Net Pension Liability was determined by an actuarial valuation as of that date. Actuarial assumptions The Total Pension Liability in the December 31, 2014 actuarial valuation was determined using the following actuarial assumptions: Salary increases were based on service-related table. Mortality rates for active members, retirees, and beneficiaries were based on the gender-distinct RP2000 Combined Healthy Mortality Table, with male rates multiplied by 109% and female rates multiplied by 103%. The rates are projected on a fully generational basis Employee deposit rate 7.00% Matching ratio (City to Employee)2 to 1 Years required for vesting 5 Servic e retirement eligibility 20 years at any age, 5 years at age 60 and above Updated Service Credit 75% Repeating Transfers Annuity Increase (to retirees)50% of CPI Repeating Inactive employees or beneficiaries currently receiving benefits 362 Inactive employees entitled to but not yet receiving benefits 441 Active employees 805 1,608 Inflation Overall Payroll growth Investment rate of return 3.0% per year 3.0% per year 7.0%, net of pension plan investment expense, including inflation 63 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2015 City of College Station, Texas by scale BB to account for future mortality improvements. For disabled annuitants, the gender-distinct RP2000 Disabled Retiree Mortality Table is used, with slight adjustments. Actuarial assumptions used in the December 31, 2014, valuation were based on the results of actuarial experience studies. This experience study was for the period January 1, 2006 through December 31, 2009, first used in the December 31, 2010 valuation. Healthy post-retirement mortality rates and annuity purchase rates were updated based on a Mortality Experience Investigation Study covering 2009 through 2011, and dated December 31, 2013. These assumptions were first used in the December 31, 2013 valuation, along with a change to the Entry Age Normal (EAN) actuarial cost method. Assumptions are reviewed annually. No additional changes were made for the 2014 valuation. The long-term expected rate of return on pension plan investments is 7.0%. The pension plan’s policy in regard to the allocation of invested assets is established and may be amended by the TMRS Board of Trustees. Plan assets are managed on a total return basis with an emphasis on both capital appreciation as well as the production of income, in order to satisfy the short-term and long-term funding needs of TMRS. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: Discount Rate The discount rate used to measure the Total Pension Liability was 7.0%. The projection of cash flows used to determine the discount rate assumed that employee contributions will remain at the current 7% and employer contributions will be made at the rates specified in statute. Based on that assumption, the pension plan’s Fiduciary Net Position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the Total Pension Liability. Long-Term Expected Real Target Rate of Return Allocation (Arithmetic) 17.5%4.80% 17.5%6.05% 30.0%1.50% 10.0%3.50% 5.0%1.75% 10.0%5.25% 5.0%4.25% 5.0%8.50% Total 100.0% Real Return Real estate Absolute Return Private Equity Asset Class Domestic equity International equity Core Fixed Income Non-Core Fixed 64 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2015 City of College Station, Texas Sensitivity of the net pension liability to changes in the discount rate The following presents the net pension liability of the City, calculated using the discount rate of 7.0%, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.0%) or 1-percentage-point higher (8.0%) than the current rate: Pension Plan Fiduciary Net Position Detailed information about the pension plan’s Fiduciary Net Position is available in a separately-issued TMRS financial report. That report may be obtained on the Internet at www.tmrs.com. Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions The implementation of Statement No. 68 resulted in the restatement of beginning net position for the elimination of the previously reported net pension obligation, the recording of the beginning net pension liability and the beginning deferred outflow for contributions made after the measurement date. For the year ended September 30, 2015, the City recognized pension expense of $5,193,753. Total Pension Liability (a) Plan Fiduciary Net Position (b) Net Pension Liability (a) – (b) 221,999,821$ 200,281,220$ 21,718,601$ 6,408,154 - 6,408,154 15,448,489 - 15,448,489 (1,163,171) - (1,163,171) - 5,916,175 (5,916,175) - 3,060,843 (3,060,843) - 11,457,666 (11,457,666) (9,022,396) (9,022,396) - - (119,620) 119,620 - (9,835) 9,835 Net changes 11,671,076 11,282,833 388,243 233,670,897$ 211,564,053$ 22,106,844$ Differences between expected and actual Increase (Decrease) Balances at 12/31/2013 Changes for the year: Service cost Interest Balances at 12/31/2014 Contributions—employer Contributions—employee Net investment income Benefit payments, including refunds of employee contributions Administrative expense Other changes 1% Decrease (6.00%) Current Discount Rate (7.00%) 1% Increase (8.00%) City's net pension liability $57,400,376 $22,106,844 ($6,657,294) 65 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2015 City of College Station, Texas At September 30, 2015, the City reported deferred outflows and inflows of resources related to pensions from the following sources: Deferred outflows or resources related to pensions resulting from contributions subsequent to the measurement date of $4,543,097 will be recognized as a reduction of the net pension liability for the measurement year ending December 31, 2015 (i.e. recognized in the city’s financial statements September 30, 2016). Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: 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 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 2015, fifty-two former employees were covered under this arrangement, with claims less retiree contributions totaling ($434,136). Deferred Outflows of Resources Deferred Inflows of Resources -$ 938,950$ - - 2,049,615 - 4,543,097 - 6,592,712$ 938,950$ Total Differences in expected and actual experience Changes of assumptions Difference between projected and actual earnings Contributions subsequent to the measurement date Measurement Year Ended Dec 31 Net deferred outflows (inflows) of res o urces 2015 288,183$ 2016 288,183 2017 288,183 2018 288,182 2019 (42,066) Thereafter - Total 1,110,665$ 66 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2015 City of College Station, Texas 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. 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 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 2013 2014 2015 Annual Required Contribution (ARC)1,449,844$ 1,449,844$ 1,810,895$ Interest on Net Pension Obligation 333,710 397,569 400,494 Adjustment to the ARC (413,492) (492,618) (522,847) Annual OPEB Cost 1,370,062 1,354,795 1,688,542 Contributions Made (92,888) (406,326) (434,136) Increase (Decrease) in net pension obligation 1,277,174 948,469 1,254,406 Net OPEB Obligation/(Asset), beginning of year 6,674,204 7,951,378 8,899,847 Net OPEB Obligation/(Asset), end of year 7,951,378$ 8,899,847$ 10,154,253$ Accounting Year Ending Annual OPEB Cost Actual Contribution Made Percentage of Annual OPEB Cost Contributed Net OPEB Obligation 9/30/2013 1,370,062 92,888 6.78% 7,951,378 9/30/2014 1,354,795 406,326 29.99% 8,899,847 9/30/2015 1,688,542 434,136 25.71% 10,154,253 67 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2015 City of College Station, Texas 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, 2014 actuarial valuation. Significant methods and assumptions follow: Actuarial Valuation Date 10/1/2014 Asset Valuation Method Market Actuarial Cost Method Projected Unit Credit Actuarial Assumptions: Annual Investment Return Assumption* 4.5% *Includes Inflation at:3.5% Projected Salary Increases N/A Annual Healthcare Trend Rates 8.0% in FYE 2015, declining to 5.25% in FYE 2021 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 three valuations, that for the fiscal year beginning October 1, 2010, October 1, 2012 and one for the fiscal year beginning October 1, 2014. 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 -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 three separate valuations, one of which used the October 1, 2010 valuation date, October 1, 2012 and October 1, 2014 valuation date. 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 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. The October 1, 2014 valuation date was used to develop results for the fiscal years ending September 30, 2015 and 2016, as part of the plan’s biennial valuation. 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 - 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% 10/1/2014 - 15,013,856 15,013,856 0.0% 44,000,000 34.12% 68 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2015 City of College Station, Texas 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 $10,084,969 in the Capital Projects Funds, $3,866,037 in the Water Fund, $1,681,227 in the Wastewater Fund and $1,463,488 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. 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 $31,675,000 I Contains projects which may have been completed or abandoned; therefore, these bonds are not likely to ever be issued. 69 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2015 City of College Station, Texas I.Revenue Bond Coverage All the net revenues of the Electric, Water and Wastewater Funds are pledged for the payment of debt service of the revenue bonds and other indebtedness payable from those revenues. Net revenues, as defined by the revenue bond resolutions, include substantially all of the revenues and expenses of the above named funds other than certain interest income and expense, and depreciation and amortization. These bond resolutions further require that the net revenues, as defined, equal at least 1.40 times the average annual debt service on all revenue bonds and other indebtedness payable from those revenues and 1.25 times the maximum annual debt service on all revenue bonds and other indebtedness payable from those revenues. The maximum annual debt service is defined as the maximum principal and interest payments to be paid in any one year remaining in the life of the bonds, and the average annual debt service is defined as the sum of all principal and interest payments due over the remaining life of the bonds divided by the remaining life of the bonds. The City is in compliance with these requirements. J. Subsequent Events As of March 18, 2016, the date the financial statements were available to be issued, the City had not experienced any subsequent events that could have a material effect on the financial statements. 70 CITY OF COLLEGE STATION, TEXAS Required Supplementary Information Texas Municipal Retirement System Schedule of Changes in Net Pension Liability and Related Ratios Last Fiscal Year (Unaudited) Measurement Year 2014 6,408,154$ 15,448,489 Changes of benefit terms - and actual experience (1,163,171) - (9,022,396) 11,671,076 221,999,821 Total pension liability - ending (a)233,670,897 Plan fiduciary net position: Contributions - employer 5,916,175 Contributions - employee 3,060,843 Net investment income 11,457,666 Benefit payments, including refunds of employee contributions (9,022,396) Administrative expense (119,620) Other (9,835) Net change in plan fiduciary net position 11,282,833 Plan fiduciary net position - beginning 200,281,220 Plan fiduciary net position - ending (b)211,564,053 Net pension liability - ending (a) - (b)22,106,844 Plan fiduciary net position as a percentage of total of total pension liability 90.54% Covered employee payroll 43,726,328$ Net pension liability as a percentage of covered employee payroll 50.56% Net change in total pension liability Total pension liability - beginning Total pension liability: Service cost Interest Differences between expected Change in assumptions Benefit payments, including refunds of employee contributions 71 CITY OF COLLEGE STATION, TEXAS Required Supplementary Information Texas Municipal Retirement System Schedule of Contributions Last Fiscal Year (Unaudited) Notes to Schedule: Valuation Date: Actuarial determined contribution rates are calculated as of December 31st each year and become effective in January, 12 months and a day later. Methods and Assumptions Used to Determine Contribution Rates: Actuarial cost method Entry Age Amortization method Level percentage of payroll, closed Remaining amortization period 23 years Asset valuation method 10-year smoothed market; 15.00% soft corridor Inflation 3.00% Salary increases 3.50% to 12.00% including inflation Investment rate of return 7.00% Retirement age Experience-based table of rates that are specific to the City’s plan of benefits. Last updated for the 2010 valuation pursuant to an experience study of the period 2005 – 2009. Mortality RP2000 Combined Mortality Table with Blue Collar Adjustment with male rates multiplied by by 103% and projected on a fully generational basis with scale BB. Other information: There were no benefit changes during the year. (5) Actuarially (2)determined (6) Contribution contributions as Contributions as in relation to (3)a percentage a percentage (1)the Contribution (4)of covered of covered Actuarially actuarially excess Covered employee employee Fiscal determined determined (deficiency)employee payroll payroll Year contribution Contribution (2) - (1)payroll (1)/(4)(2)/(4) 2006 4,030,369$ 4,030,369$ -$ 34,143,239$ 11.80%11.80% 2007 4,316,276 4,316,276 - 36,703,161 11.76%11.76% 2008 4,750,851 4,750,851 - 40,337,456 11.78%11.78% 2009 6,645,900 5,313,678 (1,332,222) 41,515,345 16.01%12.80% 2010 7,582,944 5,810,310 (1,772,634) 40,662,340 18.65%14.29% 2011 7,998,505 6,413,446 (1,585,059) 41,553,358 19.25%15.43% 2012 7,323,878 6,586,598 (737,280) 41,386,265 17.70%15.91% 2013 7,441,907 6,062,866 (1,379,041) 42,175,173 17.65%14.38% 2014 6,251,606 5,857,976 (393,630) 40,787,444 15.33%14.36% 2015 5,881,274 6,068,368 187,094 43,726,328 13.45%13.88% 72 CITY OF COLLEGE STATION, TEXAS Required Supplementary Information City of College Station Employees Other Post Employment Benefits Plan Schedule of Funding Progress Last Fiscal Year (Unaudited) The City has had three separate valuations, one of which used the October 1, 2010 valuation date, October 1, 2012 and October 1, 2014 valuation date. 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 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. The October 1, 2014 valuation date was used to develop results for the fiscal years ending September 30, 2015 and 2016, as part of the plans biennial valuation. 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. 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 - 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% 10/1/2014 - 15,013,856 15,013,856 0.0% 44,000,000 34.12% 73 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Ad valorem taxes 16,872,399$ 16,872,399$ 17,000,439$ -$ 17,000,439$ 128,040$ Sales taxes 25,300,000 25,300,000 26,687,963 - 26,687,963 1,387,963 Other taxes 2,758,475 2,758,475 3,061,718 - 3,061,718 303,243 Licenses and permits 1,146,635 1,146,635 1,500,777 - 1,500,777 354,142 Intergovernmental 243,200 393,200 355,083 - 355,083 (38,117) Charges for services 3,189,842 3,189,842 3,572,684 - 3,572,684 382,842 Fines, forfeits, and penalties 3,222,606 3,222,606 2,688,017 - 2,688,017 (534,589) Investment income 63,240 63,240 87,738 (3,325) 84,413 21,173 Rents and royalties 216,946 216,946 136,228 - 136,228 (80,718) Contributions 10,772 10,772 1,251 - 1,251 (9,521) Other 606,992 606,992 3,227,310 (1,086) 3,226,224 2,619,232 Total revenues 53,631,107 53,781,107 58,319,208 (4,411) 58,314,797 4,533,690 Expenditures Police 18,708,634 18,882,819 18,533,889 - 18,533,889 (348,930) Fire 15,079,831 15,095,425 14,881,983 - 14,881,983 (213,442) Public works 8,900,576 9,729,744 9,150,806 86,974 9,237,780 (491,964) Parks and recreation 9,317,207 9,350,593 8,194,670 (16,916) 8,177,754 (1,172,839) Library 1,144,704 1,144,704 1,138,568 - 1,138,568 (6,136) Planning and development services 3,290,334 3,538,490 3,106,143 - 3,106,143 (432,347) Information technology 4,340,875 4,362,281 4,112,987 - 4,112,987 (249,294) Fiscal services 3,362,802 3,412,002 3,310,963 - 3,310,963 (101,039) General government 4,936,845 5,036,905 4,789,053 (904) 4,788,149 (248,756) Contributions 1,194,007 1,194,007 1,187,500 - 1,187,500 (6,507) Other 2,966,392 536,561 217,114 128,754 345,868 (190,693) Capital outlay - 807,044 129,896 - 129,896 (677,148) Total expenditures 73,242,207 73,090,575 68,753,572 197,908 68,951,480 (4,139,095) Excess (deficit) of revenues over (under) expenditures (19,611,100) (19,309,468) (10,434,364) (202,319) (10,636,683) 8,672,785 Other financing sources (uses) Sale of capital assets - - 1,550,000 - 1,550,000 1,550,000 Transfers in 6,304,097 15,129,505 14,719,866 (263,740) 14,456,126 (673,379) Transfers out 334,200 (2,245,731) (2,180,574) - (2,180,574) 65,157 Contingency 250,000 207,856 - - - (207,856) Total other financing sources (uses)6,888,297 13,091,630 14,089,292 (263,740) 13,825,552 733,922 Net change in fund balances (12,722,803) (6,217,838) 3,654,928 (466,059) 3,188,869 9,406,707 Fund balances, October 1 18,043,699 18,043,699 18,043,699 - 18,043,699 - Fund balances, September 30 5,320,896$ 11,825,861$ 21,698,627$ (466,059)$ 21,232,568$ 9,406,707$ 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 For the Fiscal Year Ended September 30, 2015 74 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, 2015, 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 $100, these funds are sent to the State Comptroller. Efficiency Time Payment Fund - accounts for unrestricted revenue collected by the Municipal Court pursuant to Texas Local Government Code, Section 133.103. Chimney Hill Fund - account for the receipt and expenditure of funds by the City from the lease of retail property at the Chimney Hill Center. 75 General Fund Economic Development Unclaimed Property Efficiency Time Payment Chimney Hill Total General Fund(s) Assets Cash and cash equivalents 20,031,282$ 605,063$ 223,415$ 53,870$ -$ 20,913,630$ Equity in investments 1,989,000 60,101 22,192 5,351 - 2,076,644 Investments interest receivable 1,618 47 - 5 - 1,670 Receivables (net of allow for uncollectible)3,805,692 - - - - 3,805,692 Inventories 49,509 - - - - 49,509 Prepaid costs 14,170 - - - - 14,170 Total assets 25,891,271$ 665,211$ 245,607$ 59,226$ -$ 26,861,315$ Liabilities and fund balances Accounts payable 794,682$ -$ 121$ -$ -$ 794,803$ Accrued liabilities 1,357,336 - 245,486 - - 1,602,822 Refundable deposits 100,759 - - - - 100,759 Customer construction advances 752,760 - - - - 752,760 Total liabilities 3,005,537 - 245,607 - - 3,251,144 Deferred inflows of resources Unavailable revenue-property taxes 554,073 - - - - 554,073 Unavailable revenue-other 633,034 - - - - 633,034 Total deferred inflows of resources 1,187,107 - - - - 1,187,107 Fund balances Nonspendable 63,679 - - - - 63,679 Assigned 2,433,744 - - - - 2,433,744 Unassigned 19,201,204 665,211 - 59,226 - 19,925,641 Total fund balances 21,698,627 665,211 - 59,226 - 22,423,064 Total liabilities, deferred inflows of resources and fund balances 25,891,271$ 665,211$ 245,607$ 59,226$ -$ 26,861,315$ CITY OF COLLEGE STATION, TEXAS Combining Balance Sheet General Fund(s) September 30, 2015 76 General Fund Economic Development Unclaimed Property Efficiency Time Payment Chimney Hill Total General Fund(s) Revenues Ad valorem taxes 17,000,439$ -$ -$ -$ -$ 17,000,439$ Sales taxes 26,687,963 - - - - 26,687,963 Other taxes 3,061,718 - - - - 3,061,718 Licenses and permits 1,500,777 - - - - 1,500,777 Intergovernmental 355,083 - - - - 355,083 Charges for services 3,572,684 - - - - 3,572,684 Fines, forfeits, and penalties 2,688,017 - - 5,630 - 2,693,647 Investment income 87,738 2,074 - 232 26,030 116,074 Rents and royalties 136,228 - - - - 136,228 Contributions 1,251 - - - - 1,251 Other 3,227,310 25,000 - - - 3,252,310 Total revenues 58,319,208 27,074 - 5,862 26,030 58,378,174 Expenditures Current Police 18,533,889 - - - - 18,533,889 Fire 14,881,983 - - - - 14,881,983 Public works 9,150,806 - - - 5,264 9,156,070 Parks and recreation 8,194,670 - - - - 8,194,670 Library 1,138,568 - - - - 1,138,568 Planning and development services 3,106,143 - - - - 3,106,143 Information technology 4,112,987 - - - - 4,112,987 Fiscal services 3,310,963 - - 4,027 - 3,314,990 General government 4,789,053 64,305 - - - 4,853,358 Contributions 1,187,500 - - - - 1,187,500 Other 217,114 - - - - 217,114 Capital outlay 129,896 - - - - 129,896 Total expenditures 68,753,572 64,305 - 4,027 5,264 68,827,168 Excess(deficit) of revenues over (under) expenditures (10,434,364) (37,231) - 1,835 20,766 (10,448,994) Other financing sources (uses) Sale of capital assets 1,550,000 - - - 7,424,205 8,974,205 Transfers in 14,719,866 375,000 - - - 15,094,866 Transfers out (2,180,574) - - - (9,260,688) (11,441,262) Total Other Financing Sources (Uses)14,089,292 375,000 - - (1,836,483) 12,627,809 Net change in fund balances 3,654,928 337,769 - 1,835 (1,815,717) 2,178,815 Fund balances , October 1 18,043,699 327,442 - 57,391 1,815,717 20,244,249 Fund balances, September 30 21,698,627$ 665,211$ -$ 59,226$ -$ 22,423,064$ 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, 2015 77 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Ad valorem taxes 16,872,399$ 16,872,399$ 17,000,439$ -$ 17,000,439$ 128,040$ Sales taxes 25,300,000 25,300,000 26,687,963 - 26,687,963 1,387,963 Other taxes 2,758,475 2,758,475 3,061,718 - 3,061,718 303,243 Licenses and permits 1,146,635 1,146,635 1,500,777 - 1,500,777 354,142 Intergovernmental 243,200 393,200 355,083 - 355,083 (38,117) Charges for services 3,189,842 3,189,842 3,572,684 - 3,572,684 382,842 Fines, forfeits, and penalties 3,222,606 3,222,606 2,688,017 - 2,688,017 (534,589) Investment income 63,240 63,240 87,738 (3,325) 84,413 21,173 Rents and royalties 216,946 216,946 136,228 - 136,228 (80,718) Contributions 10,772 10,772 1,251 - 1,251 (9,521) Other 606,992 606,992 3,227,310 (1,086) 3,226,224 2,619,232 Total revenues 53,631,107 53,781,107 58,319,208 (4,411) 58,314,797 4,533,690 Expenditures General government 4,936,845 5,036,905 4,789,053 (904) 4,788,149 (248,756) Fiscal services 3,362,802 3,412,002 3,310,963 - 3,310,963 (101,039) Police 18,708,634 18,882,819 18,533,889 - 18,533,889 (348,930) Fire 15,079,831 15,095,425 14,881,983 - 14,881,983 (213,442) Planning and development services 3,290,334 3,538,490 3,106,143 - 3,106,143 (432,347) Public works 8,900,576 9,729,744 9,150,806 86,974 9,237,780 (491,964) Parks and recreation 9,317,207 9,350,593 8,194,670 (16,916) 8,177,754 (1,172,839) Information technology 4,340,875 4,362,281 4,112,987 - 4,112,987 (249,294) Library 1,144,704 1,144,704 1,138,568 - 1,138,568 (6,136) Contributions 1,194,007 1,194,007 1,187,500 - 1,187,500 (6,507) Other 2,966,392 536,561 217,114 128,754 345,868 (190,693) Capital outlay - 807,044 129,896 - 129,896 (677,148) Total expenditures 73,242,207 73,090,575 68,753,572 197,908 68,951,480 (4,139,095) Excess (deficit) of revenues over (under) expenditures (19,611,100) (19,309,468) (10,434,364) (202,319) (10,636,683) 8,672,785 Other financing sources (uses) Sale of capital assets - - 1,550,000 - 1,550,000 1,550,000 Transfers in 6,304,097 15,129,505 14,719,866 (263,740) 14,456,126 (673,379) Transfers out 334,200 (2,245,731) (2,180,574) - (2,180,574) 65,157 Contingency 250,000 207,856 - - - (207,856) Total other financing sources (uses)6,888,297 13,091,630 14,089,292 (263,740) 13,825,552 733,922 Net change in fund balances (12,722,803) (6,217,838) 3,654,928 (466,059) 3,188,869 9,406,707 Fund balances, October 1 18,043,699 18,043,699 18,043,699 - 18,043,699 - Fund balances, September 30 5,320,896$ 11,825,861$ 21,698,627$ (466,059)$ 21,232,568$ 9,406,707$ 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, 2015 78 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Investment income 1,000$ 1,000$ 2,074$ (96)$ 1,978$ 978$ Other - - 25,000 - 25,000 25,000 Total revenues 1,000 1,000 27,074 (96) 26,978 25,978 Expenditures General government 494,254 494,254 64,305 - 64,305 (429,949) Other 20,000 20,000 - - - (20,000) Total expenditures 514,254 514,254 64,305 - 64,305 (449,949) Excess (deficit) of revenues over (under) expenditures (513,254) (513,254) (37,231) (96) (37,327) 475,927 Other financing sources (uses) Transfers in - - 375,000 - 375,000 375,000 Transfers out - - - - - - Total other financing sources (uses)- - 375,000 - 375,000 375,000 Net change in fund balances (513,254) (513,254) 337,769 (96) 337,673 850,927 Fund balances, October 1 327,442 327,442 327,442 - 327,442 - Fund balances, September 30 (185,812)$ (185,812)$ 665,211$ (96)$ 665,115$ 850,927$ 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, 2015 79 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Fines, forfeits, and penalties 6,359$ 6,359$ 5,630$ -$ 5,630$ (729)$ Investment income 214 214 232 (9) 223 9 Total revenues 6,573 6,573 5,862 (9) 5,853 (720) Expenditures Fiscal services 4,160 4,160 4,027 - 4,027 (133) Total Expenditures 4,160 4,160 4,027 - 4,027 (133) Excess (deficit) of revenues over (under) expenditures 2,413 2,413 1,835 (9) 1,826 (587) Other financing sources (uses) Transfers in - - - - - - Transfers out - - - - - - Total other financing sources (uses)- - - - - - Net change in fund balances 2,413 2,413 1,835 (9) 1,826 (587) Fund balances, October 1 57,391 57,391 57,391 - 57,391 - Fund balances, September 30 59,804$ 59,804$ 59,226$ (9)$ 59,217$ (587)$ 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, 2015 80 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Investment income 368$ 368$ 26,030$ -$ 26,030$ 25,662$ Rents and royalties 34,194 34,194 - - - (34,194) Total revenues 34,562 34,562 26,030 - 26,030 (8,532) Expenditures Public works 6,667 6,667 5,264 - 5,264 (1,403) Total expenditures 6,667 6,667 5,264 - 5,264 (1,403) Excess (deficit) of revenues over (under) expenditures 27,895 27,895 20,766 - 20,766 (7,129) Other financing sources (uses) Sale of capital asset 7,500,000 7,500,000 7,424,205 7,424,205 (75,795) Transfers in - - - - - - Transfers out (9,327,416) (9,327,416) (9,260,688) - (9,260,688) 66,728 Total other financing sources (uses)(1,827,416) (1,827,416) (1,836,483) - (1,836,483) (9,067) Net change in fund balances (1,799,521) (1,799,521) (1,815,717) - (1,815,717) (16,196) Fund balances, October 1 1,815,717 1,815,717 1,815,717 - 1,815,717 - Fund balances, September 30 16,196$ 16,196$ -$ -$ -$ (16,196)$ 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, 2015 81 COMBINING FINANCIAL STATEMENTS NONMAJOR GOVERNMENTAL FUNDS SPECIAL 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. Truancy Prevention Fee Fund – account for funds collected by municipal court used to fund truancy prevention and intervention services. 82 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. 83 Court Technology Fee Court Security Fee Juvenile Case Manager Police Seizure Memorial Cemetery Memorial Cemetery Endowment Texas Ave Cemetery Endowment Hotel Tax Community Development Assets Cash and cash equivalents 408,547$ 23,744$ 241,289$ 69,167$ 1,405,282$ 800,130$ 1,687,896$ 14,639,348$ 114,235$ Equity in investments 40,581 2,358 23,967 6,870 139,588 79,478 167,660 1,454,137 11,347 Receivables (net of allow for uncollectible)- - - - 10,467 5,155 1,950 - 736,317 Investments interest receivable 32 2 19 5 109 62 131 1,137 - Inventories - - - - 4,183,480 2,060,520 189 - - Loans receivable - - - - - - - - 1,449,615 Total assets 449,160$ 26,104$ 265,275$ 76,042$ 5,738,926$ 2,945,345$ 1,857,826$ 16,094,622$ 2,311,514$ Liabilities Accounts payable 5,334$ -$ -$ -$ -$ -$ 3,073$ 16,215$ 162,276$ Accrued liabilities - 2,174 2,749 - - - - - 9,001 Retainage payable - -- - - - - - - Total liabilities 5,334 2,174 2,749 - - - 3,073 16,215 171,277 Deferred inflows of resources Unavailable revenue-loans receivable - - - - - - - - 211,738 Unavailable revenue-other - - - - 10,467 5,155 3,220 - - Total deferred inflows of resources - - - - 10,467 5,155 3,220 - 211,738 Fund balance Nonspendable - - - - 4,183,480 2,060,520 189 - - Restricted 443,826 23,930 262,526 76,042 - - - 8,663,166 1,928,499 Committed - - - - 1,544,979 879,670 1,851,344 7,415,241 - Assigned - - - - - - - - - Unassigned - - - - - - - - - Total fund balance 443,826 23,930 262,526 76,042 5,728,459 2,940,190 1,851,533 16,078,407 1,928,499 Total liabilities, deferred inflows and fund balance 449,160$ 26,104$ 265,275$ 76,042$ 5,738,926$ 2,945,345$ 1,857,826$ 16,094,622$ 2,311,514$ CITY OF COLLEGE STATION, TEXAS Combining Balance Sheet Nonmajor Governmental Funds September 30, 2015 Special Revenue 84 Wolf Pen Creek Tax Increment Financing District Parks Escrow Sidewalk Zones Drainage Projects 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 1,144,992$ 4,242,724$ 51,802$ 2,625,983$ 20,015$ 243,117$ 1,860$ 351,076$ 513,832$ 5,389,525$ 7,492,504$ 41,467,068$ 113,733 421,433 5,146 260,841 1,988 24,149 185 34,873 51,039 535,345 744,236 4,118,954 - - - 251,536 - - - - - - - 1,005,425 89 332 4 204 2 19 - 27 40 419 582 3,215 - - - - - - - - - - - 6,244,189 - - - - - - - - - - - 1,449,615 1,258,814$ 4,664,489$ 56,952$ 3,138,564$ 22,005$ 267,285$ 2,045$ 385,976$ 564,911$ 5,925,289$ 8,237,322$ 54,288,466$ -$ 10,057$ -$ 9,221$ -$ -$ -$ -$ -$ 74,127$ -$ 280,303$ - - - 19,318 - - - - - 2,156 - 35,398 - 33,831 - 8,386 - - - - - -18,360 60,577 - 43,888 - 36,925 - - - - - 76,283 18,360 376,278 - - - - - - - - - - - 211,738 - - - - - - - - - - 300 19,142 - - - - - - - - - - 300 230,880 - - - - - - - - - - - 6,244,189 1,258,814 4,620,601 56,952 - 22,005 267,285 2,045 385,976 564,911 5,849,006 8,218,662 32,644,246 - - - 3,101,639 - - - - - - - 14,792,873 - - - - - - - - - - - - - - - - - - - - - - - - 1,258,814 4,620,601 56,952 3,101,639 22,005 267,285 2,045 385,976 564,911 5,849,006 8,218,662 53,681,308 1,258,814$ 4,664,489$ 56,952$ 3,138,564$ 22,005$ 267,285$ 2,045$ 385,976$ 564,911$ 5,925,289$ 8,237,322$ 54,288,466$ Capital Projects 85 Court Technology Fee Court Security Fee Juvenile Case Manager Police Seizure Memorial Cemetery Memorial Cemetery Endowment Texas Ave Cemetery Endowment Hotel Tax Community Development Revenues Ad valorem taxes -$ -$ -$ -$ -$ -$ -$ -$ -$ Other taxes - - - - - - - 5,336,661 - Intergovernmental - - - 5,070 - - - - 2,187,590 Charges for services - - - - 240,398 118,405 37,806 - - Fines, forfeits, and penalties 64,479 48,374 80,260 - - - - - - Investment income 1,774 143 1,093 315 6,174 3,272 7,348 35,957 - Contributions - - - - - - - - - Other - - - 75 - - - 6,700 19,877 Total revenues 66,253 48,517 81,353 5,460 246,572 121,677 45,154 5,379,318 2,207,467 Expenditures Current Police - - - 13,905 - - - - - Public works - - - - - - - - - Parks and recreation - - - - 161,638 79,612 4,753 106,410 - Planning and development svcs - - - - - - - - - Fiscal services 72,561 73,834 106,972 - - - - - - General government - - - - - - - - 1,010,962 Contributions - - - - - - - 2,424,260 - Other - - - - - - - 4,943 - Capital outlay - - - - - - - 581,575 52,217 Total expenditures 72,561 73,834 106,972 13,905 161,638 79,612 4,753 3,117,188 1,063,179 Excess(deficit) of revenues over (under) expenditures (6,308) (25,317) (25,619) (8,445) 84,934 42,065 40,401 2,262,130 1,144,288 Other financing sources (uses) Transfers in - - - - - - - 9,260,688 - Transfers out - - - - (262,795) - - (602,357) (874,817) Total other financing sources (uses)- - - - (262,795) - - 8,658,331 (874,817) Net change in fund balance (6,308) (25,317) (25,619) (8,445) (177,861) 42,065 40,401 10,920,461 269,471 Fund balances , October 1 450,134 49,247 288,145 84,487 5,906,320 2,898,125 1,811,132 5,157,946 1,659,028 Fund balances, September 30 443,826$ 23,930$ 262,526$ 76,042$ 5,728,459$ 2,940,190$ 1,851,533$ 16,078,407$ 1,928,499$ CITY OF COLLEGE STATION, TEXAS Combining Statement of Revenues, Expenditures, and Changes in Fund Balance Nonmajor Governmental Funds September 30, 2015 Special Revenue 86 Wolf Pen Creek Tax Increment Financing District Parks Escrow Sidewalk Zones Drainage Projects 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 -$ -$ -$ -$ -$ 191,936$ 1,005$ -$ -$ -$ -$ 192,941$ - - - - - - - 206,138 - - - 5,542,799 - - - - - - - - - - - 2,192,660 - - - 2,146,486 - - - - - - 202,943 2,746,038 - - - - 13,436 - - - - - - 206,549 5,033 18,323 227 12,078 61 218 3 1,382 2,254 25,262 32,823 153,740 - 998,295 - - - - - - 446,407 - - 1,444,702 - - - - - - - - - 72 - 26,724 5,033 1,016,618 227 2,158,564 13,497 192,154 1,008 207,520 448,661 25,334 235,766 12,506,153 - - - - - - - - - - - 13,905 - - - 1,116,465 - - - - - - - 1,116,465 - - - - - - - - - - - 352,413 - - - 140,288 - - - - - - - 140,288 - - - - - - - - - - - 253,367 - - - - - - - 51,791 - - - 1,062,753 - - - - - - - - - - - 2,424,260 - - - - - - - - - - - 4,943 - 291,886 - 365,821 - - - - - 2,011,163 911,935 4,214,597 - 291,886 - 1,622,574 - - - 51,791 - 2,011,163 911,935 9,582,991 5,033 724,732 227 535,990 13,497 192,154 1,008 155,729 448,661 (1,985,829) (676,169) 2,923,162 - 12,000 - - - - - - - 1,183,124 300,000 10,755,812 - (330,236) - (577,864) - - - - - (125,080) (50,337) (2,823,486) - (318,236) - (577,864) - - - - - 1,058,044 249,663 7,932,326 5,033 406,496 227 (41,874) 13,497 192,154 1,008 155,729 448,661 (927,785) (426,506) 10,855,488 1,253,781 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 1,258,814$ 4,620,601$ 56,952$ 3,101,639$ 22,005$ 267,285$ 2,045$ 385,976$ 564,911$ 5,849,006$ 8,218,662$ 53,681,308$ Capital Projects 87 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Fines, forfeits, and penalties 60,881$ 60,881$ 64,479$ -$ 64,479$ 3,598$ Investment income 1,496 1,496 1,774 (65) 1,709 213 Total revenues 62,377 62,377 66,253 (65) 66,188 3,811 Expenditures Fiscal services 80,619 109,210 72,561 - 72,561 (36,649) Total expenditures 80,619 109,210 72,561 - 72,561 (36,649) Excess(deficit) of revenues over (under) expenditures (18,242) (46,833) (6,308) (65) (6,373) 40,460 Other financing sources (uses) Transfers in - - - - - - Transfers out - - - - - - Total other financing sources (uses)- - - - - - Net change in fund balances (18,242) (46,833) (6,308) (65) (6,373) 40,460 Fund balances, October 1 450,134 450,134 450,134 - 450,134 - Fund balances, September 30 431,892$ 403,301$ 443,826$ (65)$ 443,761$ 40,460$ 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, 2015 88 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Fines, forfeits, and penalties 46,294$ 46,294$ 48,374$ -$ 48,374$ 2,080$ Investment income 268 268 143 (4) 139 (129) Total revenues 46,562 46,562 48,517 (4) 48,513 1,951 Expenditures Fiscal services 80,641 80,641 73,834 - 73,834 (6,807) Total expenditures 80,641 80,641 73,834 - 73,834 (6,807) Excess(deficit) of revenues over (under) expenditures (34,079) (34,079) (25,317) (4) (25,321) 8,758 Other financing sources (uses) Transfers in - - - - - - Transfers out - - - - - - Total other financing sources (uses)- - - - - - Net change in fund balances (34,079) (34,079) (25,317) (4) (25,321) 8,758 Fund balances, October 1 49,247 49,247 49,247 - 49,247 - Fund balances, September 30 15,168$ 15,168$ 23,930$ (4)$ 23,926$ 8,758$ 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, 2015 89 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Fines, forfeits, and penalties 73,427$ 73,427$ 80,260$ -$ 80,260$ 6,833$ Investment income 1,124 1,124 1,093 (39) 1,054 (70) Total revenues 74,551 74,551 81,353 (39) 81,314 6,763 Expenditures Fiscal services 113,020 113,020 106,972 - 106,972 (6,048) Total expenditures 113,020 113,020 106,972 - 106,972 (6,048) Excess(deficit) of revenues over (under) expenditures (38,469) (38,469) (25,619) (39) (25,658) 12,811 Other financing sources (uses) Transfers in - - - - - - Transfers out - - - - - - Total other financing sources (uses)- - - - - - Net change in fund balances (38,469) (38,469) (25,619) (39) (25,658) 12,811 Fund balances, October 1 288,145 288,145 288,145 - 288,145 - Fund balances, September 30 249,676$ 249,676$ 262,526$ (39)$ 262,487$ 12,811$ 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, 2015 90 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Intergovernmental 20,000$ 20,000$ 5,070$ -$ 5,070$ (14,930)$ Investment income 200 200 315 (11) 304 104 Other - - 75 - 75 75 Total revenues 20,200 20,200 5,460 (11) 5,449 (14,751) Expenditures Police 27,000 27,000 13,905 - 13,905 (13,095) Total expenditures 27,000 27,000 13,905 - 13,905 (13,095) Excess(deficit) of revenues over (under) expenditures (6,800) (6,800) (8,445) (11) (8,456) (1,656) Other financing sources (uses) Transfers in - - - - - - Transfers out - - - - - - Total other financing sources (uses)- - - - - - Net change in fund balances (6,800) (6,800) (8,445) (11) (8,456) (1,656) Fund balances, October 1 84,487 84,487 84,487 - 84,487 - Fund balances, September 30 77,687$ 77,687$ 76,042$ (11)$ 76,031$ (1,656)$ 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, 2015 91 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Charges for services 253,528$ 253,528$ 240,398$ -$ 240,398$ (13,130)$ Investment income 5,250 5,250 6,174 (225) 5,949 699 Total revenues 258,778 258,778 246,572 (225) 246,347 (12,431) Expenditures Parks and recreation - - 161,638 (161,638) - - Total expenditures - - 161,638 (161,638) - - Excess(deficit) of revenues over (under) expenditures 258,778 258,778 84,934 161,413 246,347 (12,431) Other financing sources (uses) Transfers in - - - - - - Transfers out (262,795) (262,795) (262,795) - (262,795) - Total other financing sources (uses)(262,795) (262,795) (262,795) - (262,795) - Net change in fund balances (4,017) (4,017) (177,861) 161,413 (16,448) (12,431) Fund balances, October 1 5,906,320 5,906,320 5,906,320 - 5,906,320 - Fund balances, September 30 5,902,303$ 5,902,303$ 5,728,459$ 161,413$ 5,889,872$ (12,431)$ 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, 2015 92 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Charges for services 124,872$ 124,872$ 118,405$ -$ 118,405$ (6,467)$ Investment income 2,200 2,200 3,272 (128) 3,144 944 Total revenues 127,072 127,072 121,677 (128) 121,549 (5,523) Expenditures Parks and recreation 10,000 10,000 79,612 (79,612) - (10,000) Total expenditures 10,000 10,000 79,612 (79,612) - (10,000) Excess(deficit) of revenues over (under) expenditures 117,072 117,072 42,065 79,484 121,549 4,477 Other financing sources (uses) Transfers in - - - - - - Transfers out - - - - - - Total other financing sources (uses)- - - - - - Net change in fund balances 117,072 117,072 42,065 79,484 121,549 4,477 Fund balances, October 1 2,898,125 2,898,125 2,898,125 - 2,898,125 - Fund balances, September 30 3,015,197$ 3,015,197$ 2,940,190$ 79,484$ 3,019,674$ 4,477$ 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, 2015 93 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Charges for services 10,000$ 10,000$ 37,806$ -$ 37,806$ 27,806$ Investment income 5,460 5,460 7,348 (270) 7,078 1,618 Total revenues 15,460 15,460 45,154 (270) 44,884 29,424 Expenditures Parks and recreation - - 4,753 (69) 4,684 4,684 Total expenditures - - 4,753 (69) 4,684 4,684 Excess(deficit) of revenues over (under) expenditures 15,460 15,460 40,401 (201) 40,200 24,740 Other financing sources (uses) Transfers in - - - - - - Transfers out - - - - - - Total other financing sources (uses)- - - - - - Net change in fund balances 15,460 15,460 40,401 (201) 40,200 24,740 Fund balances, October 1 1,811,132 1,811,132 1,811,132 - 1,811,132 - Fund balances, September 30 1,826,592$ 1,826,592$ 1,851,533$ (201)$ 1,851,332$ 24,740$ 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, 2015 94 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Other Taxes 4,668,000$ 4,668,000$ 5,336,661$ -$ 5,336,661$ 668,661$ Investment income 55,000 55,000 35,957 (2,337) 33,620 (21,380) Other - - 6,700 - 6,700 6,700 Total revenues 4,723,000 4,723,000 5,379,318 (2,337) 5,376,981 653,981 Expenditures General government 210,000 210,000 - - - (210,000) Parks and recreation 219,000 219,000 106,410 - 106,410 (112,590) Contributions 2,592,694 2,755,884 2,424,260 - 2,424,260 (331,624) Other 25,000 25,000 4,943 - 4,943 (20,057) Capital outlay - 531,200 581,575 - 581,575 50,375 Total expenditures 3,046,694 3,741,084 3,117,188 - 3,117,188 (623,896) Excess(deficit) of revenues over (under) expenditures 1,676,306 981,916 2,262,130 (2,337) 2,259,793 1,277,877 Other financing sources (uses) Transfers in 9,327,416 9,327,416 9,260,688 - 9,260,688 (66,728) Transfers out (773,193) (773,193) (602,357) - (602,357) 170,836 Total other financing sources (uses)8,554,223 8,554,223 8,658,331 - 8,658,331 104,108 Net change in fund balances 10,230,529 9,536,139 10,920,461 (2,337) 10,918,124 1,381,985 Fund balances, October 1 5,157,946 5,157,946 5,157,946 - 5,157,946 - Fund balances, September 30 15,388,475$ 14,694,085$ 16,078,407$ (2,337)$ 16,076,070$ 1,381,985$ 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, 2015 95 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Intergovernmental 6,020,864$ 6,020,864$ 2,187,590$ (15,513)$ 2,172,077$ (3,848,787)$ Other - - 19,877 (4,635) 15,242 15,242 Total revenues 6,020,864 6,020,864 2,207,467 (20,148) 2,187,319 (3,833,545) Expenditures General government 4,391,704 4,391,704 1,010,962 206,757 1,217,719 (3,173,985) Capital outlay 701,021 701,021 52,217 - 52,217 (648,804) Total expenditures 5,092,725 5,092,725 1,063,179 206,757 1,269,936 (3,822,789) Excess(deficit) of revenues over (under) expenditures 928,139 928,139 1,144,288 (226,905) 917,383 (10,756) Other financing sources (uses) Transfers in - - - - - - Transfers out (928,139) (928,139) (874,817) - (874,817) 53,322 Total other financing sources (uses)(928,139) (928,139) (874,817) - (874,817) 53,322 Net change in fund balances - - 269,471 (226,905) 42,566 42,566 Fund balances, October 1 1,659,028 1,659,028 1,659,028 - 1,659,028 - Fund balances, September 30 1,659,028$ 1,659,028$ 1,928,499$ (226,905)$ 1,701,594$ 42,566$ 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, 2015 96 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Investment income 3,800$ 3,800$ 5,033$ (182)$ 4,851$ 1,051$ Total revenues 3,800 3,800 5,033 (182) 4,851 1,051 Expenditures Other 1,257,597 1,257,597 - - - (1,257,597) Total expenditures 1,257,597 1,257,597 - - - (1,257,597) Excess(deficit) of revenues over (under) expenditures (1,253,797) (1,253,797) 5,033 (182) 4,851 1,258,648 Other financing sources (uses) Transfers in - - - - - - Transfers out - - - - - - Total other financing sources (uses)- - - - - - Net change in fund balances (1,253,797) (1,253,797) 5,033 (182) 4,851 1,258,648 Fund balances, October 1 1,253,781 1,253,781 1,253,781 - 1,253,781 - Fund balances, September 30 (16)$ (16)$ 1,258,814$ (182)$ 1,258,632$ 1,258,648$ 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, 2015 97 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$ 18,323$ (682)$ 17,641$ 7,641$ Contributions 300,000 300,000 998,295 - 998,295 698,295 Total revenues 310,000 310,000 1,016,618 (682) 1,015,936 705,936 Expenditures Capital outlay 3,395,500 3,395,500 281,886 - 281,886 (3,113,614) Total expenditures 3,395,500 3,395,500 281,886 - 281,886 (3,113,614) Excess(deficit) of revenues over (under) expenditures (3,085,500) (3,085,500) 734,732 (682) 734,050 3,819,550 Other financing sources (uses) Transfers in 12,000 12,000 12,000 - 12,000 - Transfers out (321,997) (321,997) (330,236) 8,239 (321,997) - Total other financing sources (uses)(309,997) (309,997) (318,236) 8,239 (309,997) - Net change in fund balances (3,395,497) (3,395,497) 416,496 7,557 424,053 3,819,550 Fund balances, October 1 4,214,105 4,214,105 4,214,105 - 4,214,105 - Fund balances, September 30 818,608$ 818,608$ 4,630,601$ 7,557$ 4,638,158$ 3,819,550$ 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, 2015 98 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Charges for services -$ -$ 2,146,486$ -$ 2,146,486$ 2,146,486$ Investment income 8,000 8,000 12,078 (419) 11,659 3,659 Other 2,130,800 2,130,800 - - - (2,130,800) Total revenues 2,138,800 2,138,800 2,158,564 (419) 2,158,145 19,345 Expenditures Planning and development services 113,987 173,987 140,288 - 140,288 (33,699) Public works 1,291,532 1,363,137 1,116,465 (6,901) 1,109,564 (253,573) Capital outlay 200,000 200,000 365,821 - 365,821 165,821 Total expenditures 1,605,519 1,737,124 1,622,574 (6,901) 1,615,673 (121,451) Excess(deficit) of revenues over (under) expenditures 533,281 401,676 535,990 6,482 542,472 140,796 Other financing sources (uses) Transfers in - - - - - - Transfers out (556,100) (562,480) (577,864) 20,162 (557,702) 4,778 Total other financing sources (uses)(556,100) (562,480) (577,864) 20,162 (557,702) 4,778 Net change in fund balances (22,819) (160,804) (41,874) 26,644 (15,230) 145,574 Fund balances, October 1 3,143,513 3,143,513 3,143,513 - 3,143,513 - Fund balances, September 30 3,120,694$ 2,982,709$ 3,101,639$ 26,644$ 3,128,283$ 145,574$ 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, 2015 99 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Fines, forfeits, and penalties 13,000$ 13,000$ 13,436$ -$ 13,436$ 436$ Investment income 40 40 61 (3) 58 18 Total revenues 13,040 13,040 13,497 (3) 13,494 454 Expenditures Other - - - - - - Total expenditures - - - - - - Excess(deficit) of revenues over (under) expenditures 13,040 13,040 13,497 (3) 13,494 454 Other financing sources (uses) Transfers in - - - - - - Transfers out - - - - - - Total other financing sources (uses)- - - - - - Net change in fund balances 13,040 13,040 13,497 (3) 13,494 454 Fund balances, October 1 8,508 8,508 8,508 - 8,508 - Fund balances, September 30 21,548$ 21,548$ 22,005$ (3)$ 22,002$ 454$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Truancy Prevention Fee Fund For the Fiscal Year Ended September 30, 2015 100 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Ad valorem taxes 192,085$ 192,085$ 191,936$ -$ 191,936$ (149)$ Investment income 2,500 2,500 218 (39) 179 (2,321) Total revenues 194,585 194,585 192,154 (39) 192,115 (2,470) Expenditures Other - - - - - - Total expenditures - - - - - - Excess(deficit) of revenues over (under) expenditures 194,585 194,585 192,154 (39) 192,115 (2,470) Other financing sources (uses) Transfers in - - - - - - Transfers out - - - - - - Total other financing sources (uses)- - - - - - Net change in fund balances 194,585 194,585 192,154 (39) 192,115 (2,470) Fund balances, October 1 75,131 75,131 75,131 - 75,131 - Fund balances, September 30 269,716$ 269,716$ 267,285$ (39)$ 267,246$ (2,470)$ 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, 2015 101 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Ad valorem taxes 1,005$ 1,005$ 1,005$ -$ 1,005$ -$ Investment income 50 50 3 (1) 2 (48) Total revenues 1,055 1,055 1,008 (1) 1,007 (48) Expenditures Other - - - - - - Total expenditures - - - - - - Excess(deficit) of revenues over (under) expenditures 1,055 1,055 1,008 (1) 1,007 (48) Other financing sources (uses) Transfers in - - - - - - Transfers out - - - - - - Total other financing sources (uses)- - - - - - Net change in fund balances 1,055 1,055 1,008 (1) 1,007 (48) Fund balances, October 1 1,037 1,037 1,037 - 1,037 - Fund balances, September 30 2,092$ 2,092$ 2,045$ (1)$ 2,044$ (48)$ 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, 2015 102 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$ 206,138$ -$ 206,138$ 162,138$ Investment income 450 450 1,382 (56) 1,326 876 Total revenues 44,450 44,450 207,520 (56) 207,464 163,014 Expenditures Other 81,120 81,120 51,791 (51,791) - (81,120) Total expenditures 81,120 81,120 51,791 (51,791) - (81,120) Excess(deficit) of revenues over (under) expenditures (36,670) (36,670) 155,729 51,735 207,464 244,134 Other financing sources (uses) Transfers in - - - - - - Transfers out - - - - - - Total other financing sources (uses)- - - - - - Net change in fund balances (36,670) (36,670) 155,729 51,735 207,464 244,134 Fund balances, October 1 230,247 230,247 230,247 - 230,247 - Fund balances, September 30 193,577$ 193,577$ 385,976$ 51,735$ 437,711$ 244,134$ 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, 2015 103 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Investment income 250$ 250$ 2,254$ (82)$ 2,172$ 1,922$ Contributions - - 446,407 - 446,407 446,407 Total revenues 250 250 448,661 (82) 448,579 448,329 Expenditures Other - - - - - - Total expenditures - - - - - - Excess(deficit) of revenues over (under) expenditures 250 250 448,661 (82) 448,579 448,329 Other financing sources (uses) Transfers in - - - - - - Transfers out - - - - - - Total other financing sources (uses)- - - - - - Net change in fund balances 250 250 448,661 (82) 448,579 448,329 Fund balances, October 1 116,250 116,250 116,250 - 116,250 - Fund balances, September 30 116,500$ 116,500$ 564,911$ (82)$ 564,829$ 448,329$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual R. E. Meyer Estate Restricted Gift Fund For the Fiscal Year Ended September 30, 2015 104 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Investment income 15,000$ 15,000$ 25,262$ (860)$ 24,402$ 9,402$ Other - - 72 640 712 712 Total revenues 15,000 15,000 25,334 (220) 25,114 10,114 Expenditures Capital outlay 74,076 601,016 2,011,163 - 2,011,163 1,410,147 Total expenditures 74,076 601,016 2,011,163 - 2,011,163 1,410,147 Excess(deficit) of revenues over (under) expenditures (59,076) (586,016) (1,985,829) (220) (1,986,049) (1,400,033) Other financing sources (uses) Transfers in 878,541 1,234,661 1,183,124 (30,561) 1,152,563 (82,098) Transfers out (119,287) (87,847) (125,080) 37,234 (87,846) 1 Total other financing sources (uses)759,254 1,146,814 1,058,044 6,673 1,064,717 (82,097) Net change in fund balances 700,178 560,798 (927,785) 6,453 (921,332) (1,482,130) Fund balances, October 1 6,776,791 6,776,791 6,776,791 - 6,776,791 - Fund balances, September 30 7,476,969$ 7,337,589$ 5,849,006$ 6,453$ 5,855,459$ (1,482,130)$ 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, 2015 105 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Charges for services 81,600$ 81,600$ 202,943$ -$ 202,943$ 121,343$ Investment income 15,000 15,000 32,823 (1,196) 31,627 16,627 Total revenues 96,600 96,600 235,766 (1,196) 234,570 137,970 Expenditures Other 3,165,000 3,165,000 911,935 - 911,935 (2,253,065) Total expenditures 3,165,000 3,165,000 911,935 - 911,935 (2,253,065) Excess(deficit) of revenues over (under) expenditures (3,068,400) (3,068,400) (676,169) (1,196) (677,365) 2,391,035 Other financing sources (uses) Transfers in 300,000 300,000 300,000 - 300,000 - Transfers out (32,996) (32,996) (50,337) 17,341 (32,996) - Total other financing sources (uses)267,004 267,004 249,663 17,341 267,004 - Net change in fund balances (2,801,396) (2,801,396) (426,506) 16,145 (410,361) 2,391,035 Fund balances, October 1 8,645,168 8,645,168 8,645,168 - 8,645,168 - Fund balances, September 30 5,843,772$ 5,843,772$ 8,218,662$ 16,145$ 8,234,807$ 2,391,035$ 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, 2015 106 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Ad valorem taxes 12,610,135$ 12,610,135$ 12,655,920$ -$ 12,655,920$ 45,785$ Investment income 25,250 25,250 19,417 (409) 19,008 (6,242) Total revenues 12,635,385 12,635,385 12,675,337 (409) 12,674,928 39,543 Expenditures Principal retirement 8,930,000 8,830,000 9,110,000 - 9,110,000 280,000 Interest on long-term debt 4,372,308 4,372,308 4,220,656 - 4,220,656 (151,652) Debt issuance costs 50,000 50,000 7,862 1 7,863 (42,137) Total expenditures 13,352,308 13,252,308 13,338,518 1 13,338,519 86,211 Excess(deficit) of revenues over (under) expenditures (716,923) (616,923) (663,181) (410) (663,591) (46,668) Other financing sources (uses) Transfers in 262,795 262,795 262,795 - 262,795 - Transfers out - - - - - - Total other financing sources (uses)262,795 262,795 262,795 - 262,795 - Net change in fund balances (454,128) (354,128) (400,386) (410) (400,796) (46,668) Fund balances, October 1 3,214,434 3,214,434 3,214,434 - 3,214,434 - Fund balances, September 30 2,760,306$ 2,860,306$ 2,814,048$ (410)$ 2,813,638$ (46,668)$ 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, 2015 107 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Intergovernmental -$ -$ 187,020$ -$ 187,020$ 187,020$ Investment income 60,000 60,000 90,309 (2,978) 87,331 27,331 Other 100,000 100,000 107,897 - 107,897 7,897 Total revenues 160,000 160,000 385,226 (2,978) 382,248 222,248 Expenditures Capital outlay 5,845,176 4,391,873 5,310,016 - 5,310,016 918,143 Intergovernmental - 1,453,303 151,289 - 151,289 (1,302,014) Total expenditures 5,845,176 5,845,176 5,461,305 - 5,461,305 (383,871) Excess(deficit) of revenues over (under) expenditures (5,685,176) (5,685,176) (5,076,079) (2,978) (5,079,057) 606,119 Other financing sources (uses) Transfers in 1,744,491 1,744,491 1,739,457 - 1,739,457 (5,034) Transfers out (370,211) (370,211) (550,974) 180,763 (370,211) - Total other financing sources (uses)1,374,280 1,374,280 1,188,483 180,763 1,369,246 (5,034) Net change in fund balances (4,310,896) (4,310,896) (3,887,596) 177,785 (3,709,811) 601,085 Fund balances, October 1 23,569,205 23,569,205 23,569,205 - 23,569,205 - Fund balances, September 30 19,258,309$ 19,258,309$ 19,681,609$ 177,785$ 19,859,394$ 601,085$ 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, 2015 108 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. 109 Sanitation Northgate Parking Garage Total Nonmajor Enterprise Funds Assets Current assets Cash and cash equivalents 665,959$ 1,116,388$ 1,782,347$ Equity in investments 66,123 110,533 176,656 Receivables (net of allow for uncollectible)1,075,208 107,965 1,183,173 Investments interest receivable 52 86 138 Inventories 27,019 - 27,019 Total current assets 1,834,361 1,334,972 3,169,333 Noncurrent assets Equity in joint venture 13,572,308 - 13,572,308 Loans receivable 3,860,000 - 3,860,000 17,432,308 - 17,432,308 Capital assets Buildings - 5,737,679 5,737,679 Machinery and equipment 5,614,643 737,973 6,352,616 Less accumulated depreciation (2,163,999) (2,573,656) (4,737,655) Construction in progress - 86,989 86,989 Land - 690,750 690,750 Total capital assets 3,450,644 4,679,735 8,130,379 Total noncurrent assets 20,882,952 4,679,735 25,562,687 Total assets 22,717,313 6,014,707 28,732,020 Deferred outflows of resources Deferred charge on pensions 225,760 25,362 251,122 Deferred charge on refundings - 44,710 44,710 Total deferred outflows of resources 225,760 70,072 295,832 Liabilities Current Liabilities Accounts payable 215,760 12,049 227,809 Accrued liabilities 103,603 26,009 129,612 Unearned revenue - other - 21,677 21,677 Compensated absences 9,142 600 9,742 Retainage payable - 6,242 6,242 Accrued interest payable 17,793 6,287 24,080 Refundable deposits - 4,200 4,200 Certificates of obligation 250,000 - 250,000 General obligation bonds - 423,174 423,174 Total current liabilities 596,298 500,238 1,096,536 Noncurrent liabilities Certificates of obligation 3,610,000 - 3,610,000 General obligation bonds - 1,084,522 1,084,522 Compensated absences 111,694 7,330 119,024 Post employment benefits 351,478 33,123 384,601 Net pension obligation 757,023 85,044 842,067 Total noncurrent liabilites 4,830,195 1,210,019 6,040,214 Total liabilities 5,426,493 1,710,257 7,136,750 Deferred inflows of resources Deferred charge on pensions 32,154 3,611 35,765 Total deferred inflows of resources 32,154 3,611 35,765 Net position Net investment in capital assets 3,450,644 3,172,039 6,622,683 Restricted For: Debt Service - - - Unrestricted 14,033,782 1,198,872 15,232,654 Total net position 17,484,426$ 4,370,911$ 21,855,337$ CITY OF COLLEGE STATION, TEXAS Combining Statement of Net Position Nonmajor Enterprise Funds September 30, 2015 110 Sanitation Northgate Parking Garage Total Nonmajor Enterprise Funds Operating revenues Intergovernmental 5,500$ -$ 5,500$ Charges for services 8,645,853 1,193,212 9,839,065 Fines, forfeits, and penalties - 229,457 229,457 Other 32,833 - 32,833 Total operating revenues 8,684,186 1,422,669 10,106,855 Operating expenses Salaries and benefits 2,139,266 312,424 2,451,690 Supplies 397,272 24,538 421,810 Maintenance 645,796 18,498 664,294 Purchased professional services 705,937 148,709 854,646 Purchased property services 1,443,960 60,220 1,504,180 Other purchased services 1,353,439 76,181 1,429,620 Contributions 40,729 - 40,729 Depreciation 861,009 250,006 1,111,015 Other 23,126 - 23,126 Total operating expenses 7,610,534 890,576 8,501,110 Operating income 1,073,652 532,093 1,605,745 Nonoperating revenues (expenses) Investment income 2,356 4,543 6,899 Earnings in joint venture 662,822 - 662,822 Interest expense 861 (66,018) (65,157) Other, net (146,351) 12,269 (134,082) Total nonoperating revenues (expenses)519,688 (49,206) 470,482 Income before capital contributions and transfers 1,593,340 482,887 2,076,227 Capital contributions and transfers Capital contributions 1,472,527 22,699 1,495,226 Transfers in 218,401 - 218,401 Transfers out (1,326,796) 103,910 (1,222,886) Total capital contributions and transfers 364,132 126,609 490,741 Change in net position 1,957,472 609,496 2,566,968 Net position - beginning 16,238,893 3,805,018 20,043,911 Prior period adjustment (711,939) (43,603) (755,542) Net position - ending 17,484,426$ 4,370,911$ 21,855,337$ 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, 2015 111 Total Northgate Nonmajor Parking Enterprise Sanitation Garage Funds Cash flows from operating activities: Cash received from customers 8,534,741$ 1,172,791$ 9,707,532$ Cash payments to suppliers for goods and services (5,644,258) (400,160) (6,044,418) Cash payments to employees for services (1,542,809) (242,719) (1,785,528) Cash paid for miscellaneous services (146,351) - (146,351) Cash received for miscellaneous revenues - 12,269 12,269 Net cash provided (used) by operating activities 1,201,323 542,181 1,743,504 Cash flows from noncapital financing activities: Transfers in from other funds 218,401 - 218,401 Transfers out to other funds (1,326,796) 103,910 (1,222,886) Net cash provided (used) by noncapital financing activities (1,108,395) 103,910 (1,004,485) Cash flows from capital and related financing activities: Acquisition and construction of capital assets (1,103,260) (117,591) (1,220,851) Capital grants and contributions 1,472,527 22,699 1,495,226 Principal paid on certificates of obligation and general obligation bonds - (401,996) (401,996) Interest paid on certificates of obligation and general obligation bonds - (67,553) (67,553) Net cash provided (used) by capital and related financing activities 369,267 (564,441) (195,174) Cash flows from investing activities: Purchase of investments (130,538) (216,791) (347,329) Proceeds from sale and maturities of investment securities 95,642 239,391 335,033 Investment income 2,304 4,457 6,761 Net cash provided (used) by investing activities (32,592) 27,057 (5,535) Net increase (decrease) in cash and cash equivalents 429,603 108,707 538,310 Cash and cash equivalents, Oct. 1 236,356 1,007,681 1,244,037 Cash and cash equivalents, Sept. 30 665,959$ 1,116,388$ 1,782,347$ Reconciliation of operating income to net cash Provided by operating activities: Operating income 1,073,652$ 532,093$ 1,605,745$ Adjustment to reconcile operating income to net cash provided (used) by operating activities: Depreciation, bad debt expense, inventory loss 861,009 250,006 1,111,015 Miscellaneous nonoperating revenues - 12,269 12,269 Miscellaneous nonoperating expenses (146,351) - (146,351) Changes in deferred inflows and outflows (193,606) (74) (193,680) Changes in assets and liabilities: Change in accounts receivable (149,445) (107,915) (257,360) Change in inventory (21,378) - (21,378) Change in accounts payable (111,297) (32,995) (144,292) Change in accrued liabilities 14,228 6,165 20,393 Change in deferred revenue - (141,963) (141,963) Change in accrued vacation 10,713 2,215 12,928 Change in OPEB 55,896 3,985 59,881 Change in net pension obligation (192,098) 18,395 (173,703) Total adjustments 127,671 10,088 137,759 Net cash provided (used) by operating activities 1,201,323$ 542,181$ 1,743,504$ CITY OF COLLEGE STATION, TEXAS Combining Statement of Cash Flows Nonmajor Enterprise Funds For the Fiscal Year Ended September 30, 2015 112 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. Workers' Compensation Fund - to account for self-insurance activity relating to administration of the City's workers' compensation plan. 113 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 8,062,313$ 6,631,206$ 139,648$ 1,840,572$ 375,106$ 378,140$ 2,248,370$ 19,675,355$ Equity in investments 800,835 658,682 13,871 182,825 37,260 37,291 223,333 1,954,097 Receivables (net of allow for uncollectible)7,612 - - - - 66,160 - 73,772 Investments interest receivable 626 515 11 143 29 29 175 1,528 Inventories - - 194,480 - - - - 194,480 Prepaids - - - - - - 2,500 2,500 Total current assets 8,871,386 7,290,403 348,010 2,023,540 412,395 481,620 2,474,378 21,901,732 Capital assets Buildings - - 786,525 - - - - 786,525 Machinery and equipment - 23,532,575 370,175 - - 759,251 - 24,662,001 Less accumulated depreciation - (14,621,675) (719,875) - - (560,602) - (15,902,152) Total capital assets - 8,910,900 436,825 - - 198,649 - 9,546,374 Total assets 8,871,386 16,201,303 784,835 2,023,540 412,395 680,269 2,474,378 31,448,106 Deferred outflows of resources Deferred charge on pensions 6,253 - 93,070 9,846 - 127,545 9,846 246,560 Total deferred outflows of resources 6,253 - 93,070 9,846 - 127,545 9,846 246,560 Liabilities Current liabilities Accounts payable 241,328 704,082 79,723 63,114 4,320 5,349 2,079 1,099,995 Accrued liabilities 1,705 - 25,888 2,550 - 37,577 2,550 70,270 Compensated absences - - 4,589 - - 4,103 - 8,692 Retainage payable - - - 4,822 - - - 4,822 Claims payable 1,336,795 - - 342,312 - - 293,935 1,973,042 Total current liabilities 1,579,828 704,082 110,200 412,798 4,320 47,029 298,564 3,156,821 Noncurrent liabilities Compensated absences - - 56,070 - - 50,130 - 106,200 Post employment benefits 11,854 - 143,854 16,384 - 224,260 16,359 412,711 Net pension obligation 20,966 - 312,085 33,017 - 427,688 33,016 826,772 Total noncurrent liabilites 32,820 - 512,009 49,401 - 702,078 49,375 1,345,683 Total liabilities 1,612,648 704,082 622,209 462,199 4,320 749,107 347,939 4,502,504 Deferred inflows of resources Deferred charge on pensions 891 - 13,255 1,402 - 18,165 1,402 35,115 Total deferred outflows of resources 891 - 13,255 1,402 - 18,165 1,402 35,115 Net position Net investment in capital assets - 8,910,900 436,825 - - 198,649 - 9,546,374 Unrestricted 7,264,100 6,586,321 (194,384) 1,569,785 408,075 (158,107) 2,134,883 17,610,673 Total net position 7,264,100$ 15,497,221$ 242,441$ 1,569,785$ 408,075$ 40,542$ 2,134,883$ 27,157,047$ CITY OF COLLEGE STATION, TEXAS Combining Statement of Net Position Internal Service Funds September 30, 2015 114 Employee Benefits Equipment Replacement Fleet Maintenance Property and Casualty Unemployment Utility Customer Service Workers' Compensation Total Internal Service Funds Operating revenues Charges for services -$ 4,979,824$ 2,091,166$ -$ -$ 2,184,188$ -$ 9,255,178$ Premiums 9,375,937 - - 951,836 30,395 - 492,182 10,850,350 Other - - - 150,637 - 167,495 - 318,132 Total operating revenues 9,375,937 4,979,824 2,091,166 1,102,473 30,395 2,351,683 492,182 20,423,660 Operating expenses Salaries and benefits 61,590 - 933,090 91,821 - 1,319,915 91,818 2,498,234 Supplies - - 913,793 - - 41,473 - 955,266 Maintenance - - 19,169 - - 26,350 - 45,519 Purchased professional services 110,907 - 6,460 16,301 - 44,998 11,000 189,666 Purchased property services - - 13,885 - - 35,590 - 49,475 Other purchased services 566 - 56,395 - - 733,979 - 790,940 Claims 7,277,871 - -451,054 10,986 - 166,310 7,906,221 Administration fees 559,021 - -1,539,415 - - 24,773 2,123,209 Contributions - 2,267,479 - - - - - 2,267,479 Premiums 1,235,229 - - 310,470 - - 155,538 1,701,237 Depreciation - 2,032,228 37,832 - - 46,982 - 2,117,042 Other 331,977 - 19,203 8,069 - 7,750 936 367,935 Total operating expenses 9,577,161 4,299,707 1,999,827 2,417,130 10,986 2,257,037 450,375 21,012,223 Operating income (201,224) 680,117 91,339 (1,314,657) 19,409 94,646 41,807 (588,563) Nonoperating revenues (expenses) Investment income 35,966 31,127 712 15,621 1,610 1,432 9,857 96,325 Gain (loss) on disposal of assets - 45,451 - - - - - 45,451 Other, net 23,028 (23,114) 175 1,366,534 - - - 1,366,623 Total nonoperating revenues (expenses)58,994 53,464 887 1,382,155 1,610 1,432 9,857 1,508,399 Income before capital contributions and transfers (142,230) 733,581 92,226 67,498 21,019 96,078 51,664 919,836 Capital contributions and transfers Capital contributions - 104,983 - - - - - 104,983 Transfers in - 266,000 - - - - - 266,000 Transfers out (69,120) - - - - - - (69,120) Total capital contributions and transfers (69,120) 370,983 - - - - - 301,863 Change in net position (211,350) 1,104,564 92,226 67,498 21,019 96,078 51,664 1,221,699 Net position-beginning 7,482,884 14,392,657 290,914 1,515,832 387,056 114,573 2,096,789 26,280,705 Prior period adjustment (7,434) - (140,699) (13,545) - (170,109) (13,570) (345,357) Net position-ending 7,264,100$ 15,497,221$ 242,441$ 1,569,785$ 408,075$ 40,542$ 2,134,883$ 27,157,047$ 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, 2015 115 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 9,373,143$ 4,979,824$ 2,091,166$ 1,124,908$ 30,395$ 2,300,030$ 495,856$ 20,395,322$ Cash payments to suppliers for goods and services (9,439,184) (1,721,893) (1,351,490) (2,147,608) (6,666) (1,181,331) (373,825) (16,221,997) Cash payments to employees for services (48,439) - (697,838) (69,149) - (1,022,462) (69,120) (1,907,008) Cash paid for miscellaneous services - (23,114) - - - - - (23,114) Cash received for miscellaneous services 23,028 - 175 1,366,534 - - - 1,389,737 Net cash provided (used) by operating activities (91,452) 3,234,817 42,013 274,685 23,729 96,237 52,911 3,632,940 Cash flows from noncapital financing activities: Transfers in from other funds - 266,000 - - - - - 266,000 Transfers out to other funds (69,120) - - - - - - (69,120) Net cash provided (used) by noncapital financing activities (69,120) 266,000 - - - - - 196,880 Cash flows from capital and related financing activities: Capital contributions - 104,983 - - - - - 104,983 Acquisition and construction of capital assets - (3,677,863) (24,576) - - - - (3,702,439) Proceeds from sale of assets - 45,451 - - - - - 45,451 Net cash provided (used) by capital and related financing activities - (3,527,429) (24,576) - - - - (3,552,005) Cash flows from investing activities: Purchase of investments (1,569,219) (1,290,892) (27,221) (358,894) (73,074) (73,277) (437,816) (3,830,393) Proceeds from sale and maturities of investment securities 1,817,328 1,482,473 29,149 378,337 80,983 73,072 495,626 4,356,968 Investment income 35,340 30,612 701 15,478 1,581 1,403 9,682 94,797 Net cash provided (used) by investing activities 283,449 222,193 2,629 34,921 9,490 1,198 67,492 621,372 Net increase (decrease) in cash and cash equivalents 122,877 195,581 20,066 309,606 33,219 97,435 120,403 899,187 Cash and cash equivalents, Oct. 1 7,939,436 6,435,625 119,582 1,530,966 341,887 280,705 2,127,967 18,776,168 Cash and cash equivalents, Sept. 30 8,062,313$ 6,631,206$ 139,648$ 1,840,572$ 375,106$ 378,140$ 2,248,370$ 19,675,355$ Reconciliation of operating income to net cash provided by operating activities: Operating income (201,224)$ 680,117$ 91,339$ (1,314,657)$ 19,409$ 94,646$ 41,807$ (588,563)$ Adjustment to reconcile operating income to net Cash provided (used) by operating activities: Depreciation, bad debt expense, inventory loss - 2,032,228 37,832 - - 46,982 - 2,117,042 Miscellaneous nonoperating revenues 23,028 - 175 1,366,534 - - - 1,389,737 Miscellaneous nonoperating expenses - (23,114) - - - - - (23,114) Changes in deferred inflows and outflows (5,362) - (79,815) (8,444) - (109,380) (8,444) (211,445) Changes in assets and liabilities: Change in accounts receivable (2,794) - - 22,435 - (51,653) 3,674 (28,338) Change in inventory - - (78,899) - - - - (78,899) Change in prepaid costs - - - - - - (2,500) (2,500) Change in accounts payable (75,165) 545,586 (18,726) 46,568 4,320 (7,825) (511) 494,247 Change in retainage payable - - - 4,822 - - - 4,822 Change in claims payable 164,349 - - 148,300 - - 9,757 322,406 Change in accrued liabilities 198 - 120 438 - 2,727 438 3,921 Change in accrued vacation - - 7,858 - - 8,190 - 16,048 Change in OPEB 983 - 14,624 1,547 - 20,041 1,548 38,743 Change in net pension obligation 4,535 - 67,505 7,142 - 92,509 7,142 178,833 Total adjustments 109,772 2,554,700 (49,326) 1,589,342 4,320 1,591 11,104 4,221,503 Net cash provided (used) by operating activities (91,452)$ 3,234,817$ 42,013$ 274,685$ 23,729$ 96,237$ 52,911$ 3,632,940$ CITY OF COLLEGE STATION, TEXAS Combining Statement of Cash Flows Internal Service Funds For the Fiscal Year Ended September 30, 2015 116 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 118-124) 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 125-132) 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 133-137) 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 138-143) 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. 117 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Governmental activities Net investment in capital assets 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$ 167,101,930$ Restricted 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 55,374,914 Unrestricted 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 7,685,763 Total governmental activities net postion 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$ 230,162,607$ Business-type activities Net investment in capital assets 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$ 200,468,509$ Restricted 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 1,581,186 Unrestricted 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 47,781,620 Total business-type activities net postion 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$ 249,831,315$ Primary government Net investment in capital assets 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$ 367,570,439$ Restricted 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 56,956,100 Unrestricted 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 55,467,383 Total primary government net position 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$ 479,993,922$ Source: City of College Station CITY OF COLLEGE STATION, TEXAS NET POSITION BY COMPONENT LAST TEN FISCAL YEARS (accrual basis of accounting) Fiscal Year 118 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Expenses Governmental activities: Police 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$ 18,601,237$ Fire 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 15,095,073 Public works 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 18,793,401 Parks and recreation 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 9,884,737 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 1,213,820 Planning and development services 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 3,225,321 Information technology 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 4,416,190 Fiscal services 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 3,594,382 General government 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 10,194,285 Capital projects - - 719,391 476,462 256,177 648,589 819,296 733,974 731,621 - Interest on long-term debt 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 3,943,972 Unallocated depreciation 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 1,235,340 Total governmental activities expense 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 90,197,758 Business-type activities: Electric 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 79,828,415 Water 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 13,082,761 Wastewater 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 12,437,020 Sanitation 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 7,786,244 Northgate parking 621,593 591,980 668,237 909,167 1,019,393 944,125 924,532 1,053,839 1,051,901 953,681 Total business-type activities expense 73,037,085 83,233,495 95,264,451 103,243,676 117,027,958 120,855,960 118,057,522 118,826,787 129,542,655 114,088,121 Total primary government expense 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$ 204,285,879$ Program revenues Governmental activities: Charges for services: Fines, forfeits and penalties 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$ 2,900,197$ Licenses and permits 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 1,500,777 Public works 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 2,254,382 Parks and recreation 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 1,652,014 Other activities 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 5,832,527 Operating grants and contributions 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 2,995,401 Capital grants and contributions 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 3,542,528 Total governmental activities program revenues 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 20,677,826 Business-type activities: Charges for services: Electric sales 60,217,421 67,462,075 76,787,412 82,904,777 91,162,890 101,617,743 96,787,784 95,737,007 97,814,129 101,432,340 Water sales 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 15,069,720 Sewer service 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 13,864,099 Garbage collection fees 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 8,845,145 Parking garage fees 576,892 620,124 673,818 990,735 1,140,833 1,189,443 1,149,277 1,234,799 1,298,034 1,435,290 Operating grants and contributions - - - 17,792 - 3,746 9,718 982 291,366 668,322 Capital grants and contributions 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 9,596,813 Total business-type activities program revenues 93,107,487 100,286,584 115,648,804 127,733,883 135,573,219 144,169,369 141,023,841 139,866,284 143,151,696 150,911,729 Total primary government program revenues 113,811,817$ 118,351,547$ 132,108,313$ 145,900,857$ 169,316,865$ 162,655,491$ 160,294,924$ 160,506,042$ 166,038,846$ 171,589,555$ CITY OF COLLEGE STATION, TEXAS CHANGES IN NET POSITION LAST TEN FISCAL YEARS (accrual basis of accounting) Fiscal Year 119 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Net (Expense)/Revenue Governmental activities (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)$ (69,519,932)$ Business-type activities 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 36,823,608 Total primary government net expense (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)$ (32,696,324)$ General Revenues and Other Changes in Net Assets Governmental activities: Taxes Property taxes 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$ 30,936,581$ Sales and mixed beverage taxes 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 27,302,178 Franchise taxes 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 2,653,641 Hotel taxes 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 5,336,661 Unrestricted investment earnings 3,415,849 4,512,575 3,385,844 1,413,431 265,424 368,868 283,648 252,308 195,863 379,537 Gain (Loss) on sale of capital assets - - - - (24,596) - - 1,827,783 6,818,583 Transfers 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 13,037,208 Total governmental activities 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 86,464,389 Business-type activities: Unrestricted investment earnings 1,829,456 1,932,624 1,330,785 654,882 420,236 341,698 316,035 174,170 120,006 187,322 Transfers (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) (13,037,208) Total business-type activities (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) (12,849,886) Total primary government 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$ 73,614,503$ Change in net position Governmental activities 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$ 16,944,457$ Business-type activities 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 23,973,722 Total primary government 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$ 40,918,179$ Source: City of College Station (accrual basis of accounting) LAST TEN FISCAL YEARS CHANGES IN NET POSITION - Continued CITY OF COLLEGE STATION, TEXAS Fiscal Year 120 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Function/Program Governmental activities: Police 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$ 663,419$ Fire 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 2,259,979 Public works 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 4,798,615 Parks and recreation 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 3,103,886 Library - - - - - - 13,200 - - - Planning and development services 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 1,885,563 Information technology - - - - - 15,500 - - - 72 Fiscal services 547,790 409,100 684,666 38,377 100,495 215,626 542,689 666,103 1,028,531 2,956,304 General government 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 5,009,988 Capital improvement program - - - - 951,686 - 52,757 - - - Subtotal governmental activities 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 20,677,826 Business-type activities: Electric 62,284,935 69,033,816 77,419,441 84,552,573 92,530,434 102,516,252 98,200,411 96,283,238 98,872,262 105,438,676 Water 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 17,157,749 Wastewater 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 15,871,321 Sanitation 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 10,985,994 Northgate parking 576,892 620,124 673,818 990,735 1,140,833 1,206,897 1,149,277 1,234,799 1,298,034 1,457,989 Subtotal business-type activities 93,107,487 100,286,584 115,648,804 127,716,091 135,573,229 144,165,623 141,014,123 139,865,302 143,151,696 150,911,729 Total primary government 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$ 171,589,555$ Source: City of College Station Fiscal Year CITY OF COLLEGE STATION, TEXAS PROGRAM REVENUES BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS (accrual basis of accounting)121 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 General fund Nonspendable -$ -$ -$ 62,390$ 70,516$ 58,548$ -$ 59,426$ 64,594$ 63,679$ Restricted - - - 95,220 849,622 925,798 868,799 266,573 - - Assigned - - - 1,663,400 1,794,416 537,586 436,979 972,632 1,457,390 2,433,744 Unassigned - - - 7,557,419 11,101,327 12,871,125 15,186,915 14,626,901 18,722,265 19,925,641 Reserved 1,523,619 1,108,449 2,305,476 - - - - - - - Unreserved 9,448,389 11,824,140 9,679,913 - - - - - - - Total general fund 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$ 22,423,064$ All other governmental funds Nonspendable -$ -$ -$ 859,654$ 8,235,642$ 7,890,137$ 6,943,250$ 6,667,812$ 6,485,508$ 6,244,189$ Restricted - - - 39,375,368 54,421,910 27,404,127 35,688,123 39,327,653 58,993,882 55,139,903 Commited - - - 2,627,403 2,764,227 3,149,243 3,618,354 4,008,439 4,130,069 14,792,873 Assigned - - - 609,113 - - - - - - Unassigned - - - 545,024 - - - - - - Reserved 49,111,974 46,372,274 48,819,538 - - - - - - - Unreserved, reported in: Special revenue funds 7,462,140 10,148,840 11,526,009 - - - - - - - Total all other governmental funds 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$ 76,176,965$ Source: City of College Station Note: The City implemented GASB Statement 54 in 2009; schedules presenting governmental fund balance reclassifications begin in that year. Fiscal Year CITY OF COLLEGE STATION, TEXAS FUND BALANCES, GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (modified accrual basis of accounting)122 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Revenues Taxes 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$ 65,141,780$ Licenses and permits 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 1,500,777 Intergovernmental 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 2,734,763 Charges for services 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 6,318,722 Fines, forfeits and penalties 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 2,900,196 Special assessments 1,290,935 1,199,565 1,255,525 1,793,174 - - - - - - Investment income 3,066,642 3,864,797 2,886,636 1,125,382 206,648 368,868 283,648 252,308 195,863 379,540 Rents and royalties 244,864 261,225 279,004 769,150 749,635 589,528 852,738 753,401 639,267 136,228 Loan repayments - - - - - - - - - - Contributions 12,281 31,605 27,213 26,997 605,953 825,532 1,244,973 799,048 1,263,644 1,445,953 Reimbursed expenditures 145,749 479,675 46,038 413,751 - - - - - - Other revenues 447,432 738,415 1,046,431 403,548 267,695 730,747 426,218 312,473 674,439 3,386,931 Total revenues 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 83,944,890 Expenditures Police 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 18,547,794 Fire 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 14,881,983 Public works 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 10,272,535 Parks and recreation 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 8,547,083 Library 870,203 912,527 993,102 1,119,771 1,080,030 1,061,581 1,072,551 994,476 1,078,851 1,138,568 Planning and development services 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 3,246,431 Information technology 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 4,112,987 Fiscal services 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 3,568,357 General government 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 5,916,111 Capital improvement projects - - 715,707 476,462 132,880 648,589 788,032 733,974 731,621 - Capital outlay 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 9,654,509 Contributions 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 3,611,760 Reimbursed administrative (3,335,264) (3,305,040) (3,772,362) - - - - - - - Claims - - - - 1,600,000 - - - - - Community development block grant 340,399 215,707 - - - - - - - - Home grant 840,211 323,811 - - - - - - - - Other expenditures 108,527 147,860 204,338 487,163 438,757 750,135 1,380,837 1,964,156 679,772 222,057 CITY OF COLLEGE STATION, TEXAS CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (modified accrual basis of accounting) Fiscal Year 123 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Debt service Principal 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 9,110,000 Interest 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 4,220,656 Issuance costs - - - - - - - 154,660 39,719 7,862 Fiscal charges 152,729 527,806 70,796 46,551 227,765 384,196 127,671 - - - Intergovernmental 743,117 342,630 881,604 745,908 - 924,941 294,103 301,061 489,817 151,289 Total expenditures 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 97,209,982 Deficiency of revenues under expenditures (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) (13,265,092) Other Financing Sources (Uses) Proceeds from long-term debt 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 assets 17,500 318,103 10,981 505,606 5,615 8,690 - - 4,582,111 8,974,205 Transfers in 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 27,852,930 Transfers out (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) (14,815,722) Total other financing sources 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 22,011,413 Net change in fund balances 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$ 8,746,321$ Debt services as a percentage of noncapital expenditures 19.1%18.9%17.5%15.9%15.9%15.3%15.3%15.1%14.9%15.2% Source: City of College Station Fiscal Year CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS - Continued LAST TEN FISCAL YEARS (modified accrual basis of accounting) CITY OF COLLEGE STATION, TEXAS 124 Fiscal Year Property Sales Hotel Franchise Mixed Drink Total 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 2015 29,849,300 26,687,963 5,336,661 2,653,641 614,215 65,141,780 Change 2006-2015 79.3%59.3%99.8%24.4%85.7%69.1% Source: City of College Station Notes: Property taxes include general fund, debt service fund, TIRZ Northgate TIF(2008-2009) and Wolf Pen Creek TIF (1996 - 2010). CITY OF COLLEGE STATION, TEXAS TAX REVENUE BY SOURCE, GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (modified accrual basis of accounting)125 Taxable Assessed Commercial Personal, Inventory Value as a Residential and Industrial and Other Less Exemptions Less TIF (1)Total Taxable Total Direct Estimated Actual Percentage of Fiscal Year Property Property Property and Abatements Captured Value Assessed Value Tax Rate Taxable Value Actual Taxable Value 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% 2012 4,280,768,585 1,295,254,729 1,069,727,466 907,135,778 - 5,738,615,002 0.437995 5,738,615,002 100.00% 2013 4,466,234,632 1,321,942,044 1,185,964,447 1,029,828,136 - 5,944,312,987 0.430687 5,944,312,987 100.00% 2014 4,713,785,311 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% 2015 5,408,910,135 1,539,037,597 939,669,648 1,233,016,546 42,671,760 6,611,929,074 0.452500 6,611,929,074 100.00% Source: Brazos County Appraisal District Notes: Assessed value is 100% of the estimated actual value. (1) Tax increment financing district (TIF). CITY OF COLLEGE STATION, TEXAS ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS 126 Effective General Total College Fiscal Tax Basic Obligation Direct Station Brazos Year Rate (used)Rate Debt Service Rate ISD County 2006 No 0.189600 0.249800 0.439400 1.675000 0.465000 2007 No 0.191000 0.248400 0.439400 1.480000 0.455000 2008 No 0.191000 0.248400 0.439400 1.241050 0.465000 2009 No 0.193352 0.246048 0.439400 1.221100 0.480000 2010 No 0.209967 0.229433 0.439400 1.253413 0.480000 2011 Yes 0.227349 0.220194 0.447543 1.309933 0.485600 2012 Yes 0.236459 0.201536 0.437995 1.335033 0.485000 2013 Yes 0.235052 0.195635 0.430687 1.335033 0.485000 2014 Yes 0.232905 0.193053 0.425958 1.320000 0.487500 2015 Yes 0.259447 0.193053 0.452500 1.380000 0.485000 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. Overlapping Rates CITY OF COLLEGE STATION, TEXAS DIRECT AND OVERLAPPING PROPERTY TAX RATES LAST TEN FISCAL YEARS (rate per $100 of assessed value) City Direct Rates 127 Percent of Percent of of Total City of Total City Taxable Taxable Taxable Taxable 2015 Assessed Assessed 2005 Assessed Assessed Taxpayer Value Rank Value Value Rank Value CCP College Station I, LLC 61,098,101$ 1 0.86%-$ Post Oak Mall - College Station LLC 57,221,280 2 0.80% Woodridge College Station I, LLC 56,772,000 3 0.79% College Station Hospital, LP 56,768,410 4 0.79%48,724,190 2 1.34% SHP-The Callaway House, LP 51,790,840 5 0.73% BVP 2818 Place, LP 44,260,419 6 0.62% Culpepper Family, LP 42,526,770 7 0.60% Weinberg, Israel & David Alkosser 42,274,060 8 0.59%32,014,545 3 0.88% JamesPoint Management 41,841,798 9 0.59% CVCS, LLc 39,917,880 10 0.56% C.B.L. & Associates 50,480,675 1 1.38% Verizon Communications, Inc 29,663,440 4 0.81% Walmart Stores East Inc 27,583,820 5 0.76% Commonwealth Austin CH LP 21,500,740 6 0.59% University Heights - College Station 20,773,980 7 0.57% HEB Pantry Foods 20,178,780 8 0.55% JER College Station Hotel LP 18,350,600 9 0.50% University Commons - CS PH1 18,260,720 10 0.50% Source: Brazos County Appraisal District CITY OF COLLEGE STATION, TEXAS PRINCIPAL PROPERTY TAXPAYERS CURRENT YEAR AND NINE YEARS AGO 2015 2006 128 Fiscal Year Taxes Levied Collections Ended for the Percentage in Subsequent Percentage Sept 30 Fiscal Year Amount of Levy Years Amount of Levy 2006 16,162,073$ 15,938,981$ 98.62%147,450$ 16,086,430$ 99.53% 2007 17,818,419 17,697,220 99.32%39,782 17,737,002 99.54% 2008 19,973,882 19,773,036 98.99%112,323 19,885,359 99.56% 2009 22,076,134 21,795,748 98.73%170,098 21,965,846 99.50% 2010 23,623,086 23,435,105 99.20%84,014 23,519,119 99.56% 2011 24,323,279 24,136,088 99.23%82,452 24,218,540 99.57% 2012 24,979,685 24,762,625 99.13%100,460 24,863,084 99.53% 2013 25,503,096 25,326,360 99.31%51,504 25,377,864 99.51% 2014 26,407,915 26,213,476 99.26%4,545 26,218,022 99.28% 2015 29,803,314 29,414,950 98.70%- 29,414,950 98.70% Sources: City of College Station and Brazos County Tax Office CITY OF COLLEGE STATION, TEXAS PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS Collected within the Fiscal Year of the Levy Total Collections to Date 129 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Utilities 16,684$ 19,336$ 22,403$ 25,483$ 26,442$ 27,724$ 32,048$ 29,102$ 29,956$ 29,451$ Construction 12,076 13,918 15,818 15,768 10,617 10,070 10,900 12,743 12,053 14,804 Manufacturing 12,926 13,066 13,200 16,391 12,221 9,620 6,823 7,433 7,941 9,013 Wholesale Trade 25,939 17,482 8,759 13,761 9,856 10,770 19,556 23,573 26,941 23,240 Retail Trade 563,662 608,940 686,271 693,673 653,561 678,041 699,715 738,897 777,632 829,563 Information 14,409 14,082 12,148 15,427 15,654 16,907 16,984 18,261 21,546 28,076 Finance and Insurance 130 216 541 752 706 840 1,043 1,044 1,336 1,702 Real Estate and Rental/Leasing 12,024 15,679 16,249 18,326 9,288 9,456 9,314 9,785 11,411 13,781 Professional, Scientific and Tech Services 8,692 9,530 11,074 26,234 25,694 13,142 12,901 12,716 14,518 13,942 Administrative, Support, Waste Mgmt, Remediation 15,133 16,462 15,054 18,362 17,610 16,831 17,381 19,645 21,080 23,538 Educational Services 26,252 2,209,091 32,502 27,645 35,351 34,952 37,434 43,135 43,173 40,762 Health Care and Social Assistance 2,547 2,873 4,051 2,888 2,301 2,049 1,920 2,116 3,103 3,933 Arts, Entertainment and Recreation 6,781 6,949 7,399 9,168 8,671 8,470 9,325 9,488 11,070 14,400 Accommodation and Food Services 158,267 169,900 185,723 205,967 204,731 208,597 217,445 238,186 256,716 293,803 Other Services 38,894 17,069 14,539 15,782 15,338 15,890 16,274 18,594 22,322 25,305 Total 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$ 1,365,313$ 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 Accounts Notes: Taxable sales information is not available on a fiscal-year basis. CITY OF COLLEGE STATION, TEXAS TAXABLE SALES BY CATEGORY LAST TEN CALENDAR YEARS (in thousands of dollars)130 City Brazos State of Fiscal Year Direct Rate County Texas 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% 2015 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 131 Number Percentage Tax Percentage Number Percentage Tax Percentage of Outlets of Total Liability of Total of Outlets of Total Liability of Total Retail trade 1,039 60.69%11,109$ 80.98%1,348 52.46%16,850$ 82.24% Services 174 10.16%361 2.63%328 12.77%630 3.08% Wholesale trade 45 2.63%196 1.43%81 3.15%349 1.70% Utilities, transportation, communications 14 0.82%527 3.84%16 0.62%478 2.33% Manufacturing 46 2.69%194 1.41%99 3.85%135 0.66% Construction 67 3.91%182 1.33%117 4.55%222 1.08% Agriculture, forestry, and fishing 2 0.12%- 0.00%6 0.23%- 0.00% Finance, insurance, real estate 49 2.86%182 1.33%55 2.14%232 1.13% All other outlets 276 16.12%967 7.05%520 20.23%1,594 7.78% Total 1,712 100.00%13,718$ 100.00%2,570 100.00%20,488$ 100.00% Source: Texas State Comptroller of Public Accounts Notes: Tax liability information is not available on a fiscal-year basis. Due to confidentiality issues, the names of the ten largest revenue payers are not available. The categories presented are intended to provide alternative information regarding the sources of the City's revenue. Calendar Year 2005 Calendar Year 2014 CITY OF COLLEGE STATION, TEXAS SALES TAX REVENUE PAYERS BY INDUSTRY CALENDAR YEARS 2005 AND 2014 (dollars are in thousands)132 General Utility Utility Revenue Utility Revenue Total Percentage Fiscal Obligation Certificates of Revenue Certificates General Certificates General Primary of Personal Per Year Bonds Obligation Bonds of Obligation Obligation Bonds of Obligation Obligation Bonds Government Income Capita 2006 53,835,000$ 34,905,000$ 91,460,000$ -$ -$ 8,580,000$ -$ 188,780,000$ - 2,304 2007 55,720,000 33,500,000 105,215,000 - - 8,240,000 - 202,675,000 16.52%2,409 2008 60,695,000 39,965,000 99,560,000 - - 23,820,000 - 224,040,000 17.12%2,576 2009 59,145,000 38,575,000 93,755,000 4,530,000 - 47,755,000 - 243,760,000 14.04%2,682 2010 75,020,000 35,675,000 87,745,000 4,970,000 3,830,000 48,970,000 - 256,210,000 15.08%2,742 2011 78,055,000 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 2012 75,695,000 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 2013 79,710,000 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 2014 89,050,000 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 2015 81,855,000 19,890,000 13,395,000 87,305,000 44,670,000 - - 247,115,000 10.88%2,366 Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements. 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 Activities LAST TEN FISCAL YEARS OUTSTANDING DEBT BY TYPE CITY OF COLLEGE STATION, TEXAS 133 General Percentage of Obligation Less Debt Service Net Actual Taxable Fiscal Year Bonds Cash Funds Bonded Debt Value of Property Per Capita 2006 53,835,000$ 1,645,563$ 52,189,437$ 1.45%637 2007 55,720,000 2,060,709 53,659,291 1.34%638 2008 60,695,000 2,573,421 58,121,579 1.30%668 2009 59,145,000 3,125,126 56,019,874 1.13%611 2010 75,020,000 4,115,689 70,904,311 1.33%759 2011 78,055,000 4,007,146 74,047,854 1.36%782 2012 75,695,000 3,320,293 72,374,707 1.26%750 2013 79,710,000 3,032,594 76,677,406 1.29%794 2014 89,050,000 2,839,310 86,210,690 1.39%847 2015 126,525,000 2,560,216 123,964,784 1.89%1,187 Source: City of College Station Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements. CITY OF COLLEGE STATION, TEXAS RATIOS OF NET GENERAL BONDED DEBT OUTSTANDING LAST TEN FISCAL YEARS 134 Estimated Estimated Share Debt Percentage of Direct and Governmental Unit Outstanding Applicablea Overlapping Debt Debt repaid with property taxes College Station I.S.D.265,990,000$ 88.50%235,401,150$ Brazos County 82,990,000 47.07%39,063,393 Bryan I.S.D.170,915,000 2.05%3,503,758 Other debt College Station I.S.D.- 0.00%- Brazos County - 0.00%- Bryan I.S.D. Capital Lease - 0.00%- Subtotal, overlapping debt 277,968,301 City direct debt 101,745,000 Total direct and overlapping debt 379,713,301$ 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 for 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, 2015 135 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 $100 at 100% valuation. CITY OF COLLEGE STATION, TEXAS LEGAL DEBT MARGIN INFORMATION SEPTEMBER 30, 2015 136 Utility Less:Net Average Maximum Service Operating Available Debt Service Annual Debt Service Annual Fiscal Year Charges Expenses Revenue Total Coverage Total Coverage 2006 80,787,029$ 54,432,847$ 26,354,182$ 6,423,582$ 4.10 9,163,574$ 2.88 2007 87,911,120 63,514,543 24,396,577 7,389,770 3.30 10,408,958 2.34 2008 99,610,432 73,195,783 26,414,649 8,620,759 3.06 12,245,949 2.16 2009 108,367,552 80,848,570 27,518,982 9,834,136 2.80 13,870,272 1.98 2010 115,430,088 91,551,103 23,878,985 8,976,012 2.66 13,669,444 1.75 2011 127,985,835 96,938,864 31,046,971 8,675,457 3.58 13,635,526 2.28 2012 124,905,906 88,927,662 35,978,244 7,009,717 5.13 10,670,889 3.37 2013 125,581,359 90,519,871 35,061,488 9,111,927 3.85 15,372,461 2.28 2014 126,118,088 100,235,329 25,882,759 10,048,709 2.58 16,029,505 .1.61 2015 131,021,388 82,116,301 48,905,087 9,733,931 5.02 16,195,604 3.02 Source: City of College Station Notes: 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 resolutions also require that net revenues equal at least 1.25 times the maximum annual debt service on all revenue bonds and other indebtedness payable from those revenues. CITY OF COLLEGE STATION, TEXAS LAST TEN FISCAL YEARS Utility Revenue Bonds, Certificates of Obligation, and General Obligation Refunding Bonds PLEDGED-REVENUE COVERAGE 137 Personal Income Calendar (thousands Per Capita Unemployment Year Population of dollars)Personal Income Rate % 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 2014 102,117 2,270,453 22,234 3.1 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 2005-2012. unemployment rate. unemployment rates. Along with the new calculation method, Robertson and Grimes County were added to the Bryan/College Station MSA. The net result is an increase in the area's CITY OF COLLEGE STATION, TEXAS DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN CALENDAR YEARS In 2005, the Bureau of Labor Statistics introduced a new methodology for calculating 138 2015 2006 Employer Employer Baylor Scott & White Clinic 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 HEB Grocery Company LP Reynolds & Reynolds Sanderson Farms Inc Sanderson Farms, Inc.St Joseph Hospital CHI St.Joseph Regional Hospital Texas A&M University Texas A&M University System Wal-Mart Associates Inc Source: Texas Workforce Commission (TWC), 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 139 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Function/Program Police 155.1 163.5 168.5 176.0 169.0 180.5 182.5 192.5 196.5 206.5 Fire 110.6 119.0 125.0 121.0 118.0 120.5 139.0 139.0 140.0 152.0 Public Works 112.6 114.5 106.5 113.0 94.0 96.0 114.0 116.0 118.0 124.0 Parks and Recreation 119.8 123.5 131.0 133.0 133.0 119.0 117.0 111.5 105.5 106.5 Planning and Development Services 27.1 24.5 34.0 37.0 41.0 54.0 58.5 56.5 56.0 52.0 Information Services 36.6 28.5 33.0 32.0 30.5 30.0 30.5 29.5 30.5 30.5 Fiscal Services 70.1 71.0 72.5 70.5 70.0 66.5 69.8 68.8 69.8 72.8 General Government 37.8 58.5 71.0 79.5 75.0 61.5 37.5 36.5 37.5 47.0 Electric 56.0 56.5 58.0 65.0 64.0 63.5 67.5 69.5 70.5 74.5 Water / Sewer Services 71.8 71.0 67.5 76.5 70.5 74.0 77.0 77.0 78.0 84.5 BVSWMA 24.0 22.0 25.5 25.0 23.5 22.0 22.0 -- - Capital Project n/a n/a 10.0 10.0 9.0 9.0 --- - Total 821.5 852.5 902.5 938.5 897.5 896.5 915.3 896.8 902.3 950.3 Source: City of College Station Full-time-equivalent employees include full time, part time, and seasonal/temporary employees on staff as of September 30. During 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. CITY OF COLLEGE STATION, TEXAS FULL-TIME-EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS Fiscal Year 140 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Function/Program General Government Open records requests 199 199 155 164 123 240 194 233 432 531 Economic development prospects 31 19 18 23 55 31 25 36 35 37 Code enforcement cases processed 5,984 4,838 5,148 6,248 5,268 4,701 5,011 4,517 7,941 9,600 Non-profit agencies/contracts monitored 13 7 10 9 10 8 7 8 7 7 Applicants receiving homebuyers assistance 9 6 3 4 6 3 15 8 4 4 Police DUI/DWI arrests 414 493 458 430 449 571 551 473 474 400 Citations processed 34,134 38,046 10,384 17,275 22,224 42,690 39,145 31,348 29,187 25,070 Uniform patrol calls handled 60,159 58,303 57,661 48,297 58,656 61,283 63,000 75,988 71,373 53,259 Average response time on high priority calls 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 mins 7:46 mins Criminal investigation new cases assigned 2,368 2,256 2,635 2,590 2,098 2,582 2,089 2,158 1,894 2,196 Note: In FY08 an e-citation program was implemented thus reducing the number of paper citations processed. Fire Fire incidents (fire, rescue, and haz mat)1,743 1,832 1,992 2,008 2,301 1,813 1,751 2,608 2,974 2,489 Business safety inspections 828 1,018 947 760 1,364 1,151 907 889 1,345 563 EMS incidents 3,048 3,773 4,718 5,367 5,414 5,407 6,814 4,846 5,170 5,959 EMS unit responses 5,276 5,476 5,369 5,051 5,646 6,090 6,295 8,188 9,435 10,099 Public Works Street overlay lane miles 19 19 15 9 2 11 10 13 13 12 Potholes repaired 24,778 21,506 20,546 18,000 68,548 67,448 70,515 62,596 61,439 25,392 Curb miles swept 7,235 6,040 6,955 5,620 5,595 6,244 7,131 5,826 6,311 6,672 Note: In FY10 number of potholes repaired went to number of square feet repaired. Parks and Recreation Instructional participants 3,075 3,432 3,538 3,077 3,112 2,765 1,835 1,600 2,495 2,598 Pool customers 146,805 128,206 142,605 138,785 93,302 114,458 144,059 128,081 73,229 81,083 LAST TEN FISCAL YEARS OPERATING INDICATORS BY FUNCTION/PROGRAM CITY OF COLLEGE STATION, TEXAS Fiscal Year 141 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Function/Program Planning and Development Services Permits processed 6,575 7,583 6,647 5,819 5,972 6,026 5,600 3,991 4,446 7,766 Building inspections performed 13,069 13,398 13,814 12,938 12,379 11,583 12,100 12,945 13,859 16,069 Parking citations issued 8,452 7,238 9,460 9,686 6,763 4,488 6,530 6,868 7,320 7,515 Community enhancement cases 7,384 8,631 11,885 11,622 11,408 8,632 8,900 6,518 7,941 9,600 Electric Number of connections 37,590 38,519 37,777 37,818 38,255 37,829 39,123 38,138 19,000 38,224 Average monthly consumption (KWH)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 69,577,111 Water Number of units 33,491 34,763 37,075 37,344 37,596 37,565 39,338 40,767 24,847 41,540 Average monthly consumption (MGW)317,438 293,246 324,012 345,170 301,399 408,327 356,791 380,558 343,360 339,840 Sewer Number of units 31,051 32,034 34,743 34,743 35,853 35,510 36,908 38,688 32,065 40,806 Average daily sewage treatment 5,911 6,502 6,626 6,625 6,700 6,242 6,453 6,500 7,129 7,598 (thousands of gallons) New services completed 646 521 781 604 377 301 376 319 555 623 Sanitation Number of users (units)27,181 28,112 29,533 30,750 30,779 30,455 31,573 32,551 23,239 22,210 Residential tons collected 24,964 27,556 22,191 21,406 28,451 22,775 28,991 25,493 26,290 25,573 Residential tons recycled 983 1,060 1,199 1,064 1,053 1,173 1,124 1,010 982 4,809 Commercial tons collected 35,122 38,402 38,709 36,245 36,558 35,133 34,608 36,751 37,856 39,272 Parking garage Active contract customers 432 472 464 333 524 482 460 354 410 364 Hourly cash customers 108,893 109,028 107,584 104,342 85,210 83,048 80,127 81,624 80,555 80,012 Utility Customer Service Payments processed 413,088 423,299 443,766 461,557 467,262 436,936 476,999 498,703 495,659 502,752 Incoming calls 85,728 85,842 97,121 96,876 85,212 84,861 94,986 93,075 93,862 94,037 Meters read 618,676 640,554 670,913 694,270 708,672 719,749 732,631 744,298 758,306 776,279 Source: City of College Station various departments CITY OF COLLEGE STATION, TEXAS OPERATING INDICATORS BY FUNCTION/PROGRAM - Continued LAST TEN FISCAL YEARS Fiscal Year 142 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Function/Program Police Patrol units 26 29 29 29 27 33 32 39 39 39 Jail capacity 17 17 17 17 17 17 17 17 17 17 Fire stations 4 4 4 4 4 4 5 6 6 6 Public Works Streets (linear miles)395 429 438 428 453 474 482 482 493 505 Sidewalks (miles)100 100 100 119 130 138 150 156 162 181 Traffic signals 62 65 66 66 69 70 75 76 77 77 Storm sewers (miles)72 72 72 80 83 83 89 89 95 104 Notes: Storm sewer mileage includes both underground pipes and valley gutters. Parks and Recreation Acreage 1,274 1,289 1,306 1,306 1,327 1,327 1,327 1,328 1,412 1,448 Playunits 46 48 47 54 56 57 57 56 61 64 Softball/baseball fields 32 32 35 35 36 36 36 36 41 41 Soccer fields 31 31 29 29 30 30 30 30 35 26 Jogging/walking trails 27 28 29 33 34 34 34 34 41 42 Community centers 3 3 3 3 3 3 3 2 2 2 Pools 3 3 3 3 3 3 3 3 3 3 Pavilions (rentable)6 7 7 6 6 7 7 7 7 6 Notes: Some parks have multiple playunits. Softball/baseball fields include practice fields. Electric Peak demand (megawatts)260 355 355 355 305 305 325 325 204 208 Number of substations 5 5 5 5 6 6 6 6 6 7 Distribution lines (miles)394 411 411 432 440 444 438 458 458 471 Water Water mains (miles)365 367 381 385 396 402 410 415 420 430 Fire hydrants 2,232 2,380 2,453 2,494 2,562 2,614 2,682 2,741 2,798 2,869 Number of wells 8 8 8 8 9 9 9 9 9 9 Water production capacity 23,000 23,000 23,000 26,000 32,000 27,000 30,000 29,000 29,000 31,400 (thousands of gallons per day) Sewer Sanitary sewer lines (miles)279 285 301 305 313 319 324 324 324 338 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) Sanitation Collection trucks 24 25 25 25 25 25 25 25 26 27 Residential collection containers 16,647 18,135 19,549 20,275 20,671 20,550 21,547 22,470 23,239 24,253 Commercial collection containers 1,569 1,594 1,619 1,644 1,669 1,694 1,719 1,744 1,894 1,916 Fleet number of vehicles 627 651 643 647 662 662 576 570 596 600 Source: City of College Station LAST TEN FISCAL YEARS CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM CITY OF COLLEGE STATION, TEXAS Fiscal Year 143