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FY 1987-1988 -- Comprehensive Annual Financial Report City of College Station, texas FINANCE DEPARTMENT Comprehensive Annual Financial Report For the Fifteen Month Period Ended September 30, 1988 CITY OF COLLEGE STATION, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30, 1988 PREPARED BY THE CITY OF COLLEGE STATION FINANCE DEPARTMENT WILLIAM P. HARRISON, DIRECTOR OF FINANCE GLENN SCHROEDER, DEPUTY DIRECTOR OF FINANCE KATHLEEN HUBBARD, CHIEF ACCOUNTANT CITY OF COLLEGE STATION. TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30, 1988 TABLE OF CONTENTS PAGE INTRODUCTORY SECTION: Organizational Chart 2 Principal City Officials 3 Letter of Transmittal 5 GFOA Certificate of Achievement for Excellence in Financial Reporting 15 FINANCIAL SECTION: Independent Auditors' Report 19 General Purpose Financial Statements for the Fifteen Months Ended September 30, 1988: Combined Balance Sheet-All Fund Types and Account Groups 22 Combined Statement of Revenues, Expenditures and Changes in Fund Balances-All Governmental Fund Types 26 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual (GAAP Basis) -General Fund 27 Combined Statement of Revenues, Expenditures and Changes in Fund Balances- Budget and Actual (Non-GAAP Basis) -Special Revenue Funds 28 Combined Statement of Revenues, Expenses and Changes in Fund Equity-All Proprietary Fund Types and Pension Trust Fund 29 Combined Statement of Changes in Financial Position-All Proprietary Fund Types and Pension Trust Fund 31 Notes to General Purpose Financial Statements 33 SUPPLEMENTAL FINANCIAL INFORMATION - INDIVIDUAL.AND COMBINING FINANCIAL STATEMENTS OF FUND TYPES AND ACCOUNT GROUPS FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30. 1988: General Fund Schedule of Revenues and Other Financing Sources - Budget and Actual (Non-GAAP Basis) 56 Schedule of Expenditures Compared with Budget (Non-GAAP Basis) 58 - CITY OF COLLEGE STATION. TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30, 1988 TABLE OF CONTENTS (CONTINUED) PAGE SUPPLEMENTAL FINANCIAL.INFORMATION (Continued): Special Revenue Funds Combining Balance Sheet 72 Combining Statement of Revenues, Expenditures and Changes in Fund Balance 73 Community Development Fund Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis) and Actual 74 Hotel/Motel Tax Fund Statement of Revenues, Expenditures and Changes in Fund Balance- Budget (GAAP Basis) and Actual 75 Capital Project Funds Combining Balance Sheet 78 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 79 Enterprise Funds Combining Balance Sheet 82 Combining Statement of Revenues, Expenses and Changes in Fund Equity 84 Combining Statement of Changes in Financial Position 85 Utility Fund Schedule of Revenues- Budget and Actual (Non-GAAP Basis) 86 Schedule of Expenses- Budget and Actual (Non-GAAP Basis) 87 Sanitation Fund Schedule of Revenues- Budget and Actual (Non-GAAP Basis) 90 Schedule of Expenses- Budget and Actual (Non-GAAP Basis) 91 Utility Fund and Sanitation Fund Schedule for Reconciliation of Revenues and Expenses (Non-GAAP Basis) to GAAP Basis Statement of Income 93 Internal Service Funds Combining Balance Sheet 96 - ii - CITY OF COLLEGE STATION. TEXAS, COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30, 1988 TABLE OF CONTENTS (CONTINUED) PAGE SUPPLEMENTAL FINANCIAL INFORMATION,(Continued): Combining Statement of Revenues, Expenses and Changes in Fund Equity 97 Combining Statement of Changes in Financial Position 98 General Fixed Assets Account Group Schedule of General Fixed Assets- By Sources 102 Schedule of General Fixed Assets -By Function and Activity 103 Schedule of Changes in General Fixed Assets- By Function and Activity 105 STATISTICAL SECTION: General Governmental Expenditures and Other Uses by Function 109 General Revenues and Other Financing Sources 111 Property Tax Levies and Collections 113 Assessed and Estimated Actual Value of Taxable Properties 115 Property Tax Rates, Ratios and Levies-All Overlapping Governments 117 Paving Assessment Collections 119 Computation of Legal Debt Margin 120 Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt Per Capita 121 Schedule of Direct and Estimated Overlapping Debt 123 Ratio of Annual Debt Service Expenditures for General Obligation Debt to Total General Fund Expenditures 124 Schedule of Revenue Bond Coverage- Utility Fund 125 Total Bank Deposits 126 Construction Permits 127 Principal Taxpayers 128 Miscellaneous Statistical Data 129 - UI - INTRODUCTORY SECTION - 1 - CITIZENS O COLCITLEGE STATION I MAYOR CITY COUNCIL 1 1 1 MUNICIPAL COURT 9 CLERK III CITY ATTORNEY I CITY MANAGER I MUNICIPAL JUDGE 11 CITY SECRETARY PERSONNEL PUBLIC INFORMATION II IV ASSISTANT TO THE CITY ASSISTANT CITY ASSISTANT CITY MANAGER- MANAGER- MANAGER- UTILITIES COMMUNITY SERVICES MANAGEMENT SERVICES 1 1 1 1 MANAGEMENT MANANEMENT PUBLIC PUBLIC PARKS AND CAPITAL SERVICES INFORMATION UTILITIES SERVICES RECREATION - IMPROVEMENTS FINANCE POLICE FIRE - SERVICES CITY OF COLLEGE STATION. TEXAS PRINCIPAL CITY OFFICIALS SEPTEMBER 30, 1988 Elected Officials: Mayor Larry J. Ringer Council Members Fred H. Brown Vernon E.Schneider James R. Gardner Dick B. Haddox Dick Birdwell Lynn R. Mcllhaney City Administration: City Manager Ron Ragland Assistant City Manager for Community Services Thomas E. Brymer Assistant City Manager for Utilities John C. Woody Assistant to the City Manager Linda S. Piwonka Director of Capital Improvements Elrey B. Ash Director of Finance William P. Harrison Fire Chief Douglas W. Landua Director of Parks Stephen C. Beachy Personnel Director Karen N. Dickson Police Chief Michael L. Strope Director of Public Services Alfred W. Miller City Attorney Catherine Locke City Secretary Dian B. Jones Municipal Court Judge Philip C. Banks - 3 - (This page intentionally left blank.) - 4 - C •� CITY OF COLLEGE STATION P O. BOX 9960 1101 TEXAS AVENUE COLLEGE STATION,TEXAS 77842 0960 (409)764-3500 March 3, 1989 Honorable Mayor Members of the City Council City of College Station, Texas The Comprehensive Annual Financial Report of the City of College Station, Texas ("City"), for the fifteen months ended September 30, 1988, is submitted herewith. This report was prepared by the City's Finance Department. Responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the City. We believe the data, as presented, is accurate in all material aspects; that it is presented in a manner designed to fairly set forth the financial position of its various funds; and that all disclosures necessary to enable the reader to gain the maximum understanding of the City's financial affairs have been included. The Comprehensive Annual Financial Report is presented in three major sections: introductory, financial, and statistical. The introductory section includes this transmittal letter, the City's organizational chart and a list of principal elected and appointed officials of the City. The financial section includes the general purpose financial statements and the combining and individual fund and account group financial statements and schedules, as well as the auditors' report on the financial statements and schedules. The statistical section includes selected financial and demographic information, generally presented on a multiyear basis to allow for trend analysis of the finances of the City. The City is required to undergo an annual single audit in conformity with the provisions of the Single Audit Act of 1984 and U.S. Office of Management and Budget Circular A-128, Audits of State and Local Governments,. Information related to this single audit, including the schedule of federal financial assistance, findings and recommendations, and auditors' reports on the internal control structure and compliance with applicable laws and regulations, are reported separately. This report includes all funds and account groups of the City. The City provides a full range of municipal services. These services include police and fire protection; the construction and maintenance of streets and infrastructure; municipal utilities in the areas of electric, water, sewer, storm drainage, and sanitation; recreational activities and cultural events. The College Station Industrial Development Foundation, administered by a separate board not subject to oversight by the Mayor and City Council, has not met the established criteria for inclusion in the reporting entity and has been excluded from this report. The College Station Independent School District is likewise administered by a separate, elected, board and operates with its own funding sources; it has not been included in this report. Home of Texas A & M University - 5 - FISCAL YEAR Through action of the College Station City Council, fiscal year 1988 was extended for a period of three months to end on September 30, 1988. In previous years, the City's fiscal year had been July 1 through June 30. That fiscal year did not afford sufficient time for City Council input and deliberation Into the annual budget process subsequent to Council elections held in May of each year. This change in fiscal year has resulted in a fifteen-month financial reporting period, making comparisons difficult between this reporting period and previous twelve-month reporting periods. THE CITY OF COLLEGE STATION • The City of College Station is in East Central Texas, approximately 140 miles north of the Gulf of Mexico, conveniently located 90 miles north of Houston, 165 miles south of Dallas, and 100 miles east of Austin. Of major importance to the City of College Station is Texas A&M University, located on a 5,200 acre campus within the corporate limits of the City. The economic impact on the City by the University continues to be substantial, contributing an estimated $300 million annually to the local economy. For the school year beginning in September 1988, Texas A&M University ranked in the top ten nationally both in enrollment • and research grants among public institutions. The University employs in excess of 15,000 and has a physical plant valued in excess of$800 million. In addition to the University, employment is provided by more than 75 manufacturing industries located in, or adjacent to, the City which provides such products as aluminum windows, business forms,furniture, chemicals, dairy products, feeds and fertilizers. modular homes, bronze castings, and geophysical survey sensors. A growing research park is located adjacent to the University. Westinghouse Defense and Electronic Systems Center produces defense radar-related equipment. Agency Record Control provides a major automated accounting service for independent property and casualty insurance agents. Commercial development in the City is anchored by the 1,000,000 square foot Post Oak Mall opened in 1982. Major tenants of the shopping center are Sears-Roebuck, Dillard's, Foley's, Beall's, and J.C. Penney's. During 1988, Wal-Mart opened a major retail facility in the community and K-Mart underwent a major expansion of their retail operations. Over the past several years, the City of College Station has become the major medical center for the Brazos Valley area. In 1986, Scott & White opened a large medical clinic; in 1987, Humana Hospital opened a 100-bed full service hospital with an adjacent medical office complex. This year, HCA-Greenleaf Hospital opened a psychiatric hospital in College Station and the Sandstone Psychiatric Hospital is nearing completion. This City, although not immune to the affects of collapse of the oil and real estate markets in the State of Texas in the early and mid-1980's, has been insulated by the dominant affect of Texas A&M University on the local economy. As detailed in the statistical section at the rear of this report, property valuations have been essentially flat over the past several years. Improvements in the local economy have been in the area of commercial development, with significant increases in sales tax revenues to the municipality in recent years. The job market in College Station continues to be strong. The Bryan-College Station reporting area has led the State in low unemployment levels for the past two years. As of September 30, 1988, unemployment here stood at 4.6%, significantly better than the statewide jobless rate of 7.1%. - 6 - MAJOR INITIATIVES For the Year. During the budget preparation process for fiscal year 1988, the College Station City Council needed to meet the challenge of continuing to provide the current high standards of municipal services within the constraints of level or slowly Increasing revenues. The result of the budget process was the elimination of 23 employee positions and a salary freeze for the year. The actions taken by the City Council were effective: taxing levels to our citizens were not increased for the year and the City was not forced to use reserve funds to finance operations. During this fiscal year, the City Council emphasized the development of budgetary policies to address such areas as prudent reserve levels in the City's various funds, a capital replacement policy, and policies concerning the appropriate level of administrative transfers from utility and capital funds to the General Fund as reimbursement for services provided. These projects were effective in strengthening the budget approval process for the City's 1988-89 fiscal year budget. During 1988, the City adopted a three-year Management Information Services plan to address the computerization needs of the City. That plan resulted in debt issuance of $1,500,000, used to enhance computer operations in various areas of the City. During 1988, an NCR Series 9500 computer was purchased as a replacement to the outdated hardware for Utility Billing. Contracts have been approved, for 1989 installation, for replacement hardware and software for the financial and personnel application system and a new G.I.S. mapping system. Office automation has been upgraded through the purchase of numerous personal computer workstations throughout City offices. Staff support has been enhanced with the hiring of an M.I.S. Director and the creation of the position of Micro Specialist to coordinate office automation and staff training. For the Future. Maintenance and expansion of the City's general infrastructure (such as roads, bridges, and sidewalks) remains a concern of the City. A priority list of street renovation projects has been developed, with funding from a series of authorized but unissued bonds. The City is also cooperating with the Texas State Department of Highways in the construction of major traffic links crossing the Texas Highway 6 By-Pass. At Emerald Forest Parkway, the City is responsible for the realignment of Emerald Forest Parkway on the east side to meet the State-constructed overpass; on the west side, the City is financially responsible for the right-of-way purchase for the FM 2818 extension to meet the overpass. At Southwest Parkway, the City is responsible for a portion of right-of-way purchase and sidewalk and utilities relocation. To facilitate the effective operations of the Public Services Department, a major renovation and expansion of their facility is in the planning process. That project, with a budget of $1,400,000,will allow that department to meet the street maintenance, vehicle maintenance, and sanitation service needs of a growing community. FINANCIAL INFORMATION The City is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft or misuse and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management. - 7 - Mile Audit. As a recipient of federal assistance the government also is responsible for ensuring that an adequate internal control structure is in place to ensure compliance with applicable laws and regulations related to those programs. This internal control structure is subject to periodic evaluation by management. As a part of the City's single audit, described earlier, tests are made to determine the adequacy of the internal control structure, including that portion related to federal financial assistance programs, as well as to determine that the City has complied with applicable laws and regulations. The results of the City's single audit for the fifteen months ended September 30, 1988, provided no instances of material weaknesses in the internal control structure or significant violations of applicable laws or regulations. Budgetary Controls. In addition, the City maintains budgetary controls, The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annual budget appropriations ordinance approved by the City Council. Activities of the General Fund, Debt Service Fund, Special Revenue Fund, Utilities Enterprise Funds, and Internal Service Funds are included in the budget appropriations ordinance. The level of budgetary control; that is, the level at which expenditures cannot legally exceed appropriations, is established by division and major activity level within an individual fund. As an example of budgetary control, expenditures cannot exceed amounts budgeted for the control areas of personal services costs, total supplies, total services expenditures, and capital outlay within any division budget of the General Fund. The City's Budget Office monitors expenditure activity on a monthly basis against budgeted amounts and reports significant variances to the City Manager. As demonstrated by the statements and schedules included in the financial section of this report, the City continues to meet its responsibility for sound financial management. General Government Functions. The following schedule presents a summary of General Fund and Debt Service Fund revenues and other various financing sources for the fifteen months ended September 30, 1988. Normally, this presentation would include a comparison to revenues received in the preceding fiscal year. This report, expanded to a financial reporting period of fifteen months, makes those type of comparisons misleading and have been omitted. Percent Revenue Source Total of Total General Fund Property Tax $ 962,953 5.41% Sales Tax 4,169,130 23.44 Franchise Tax 344,610 1.94 Licenses&Permits 139,412 .78 Fines&Service Fees 478,114 2.69 Charges for Services 487,541 2.74 Transfer from Enterprise Funds in lieu of taxes 5,570,140 31.31 Miscellaneous Revenues 727,609 4.09 Proceeds of Bond Issue 1,500,000 8.43 Debt Service Property Tax 3,411,171 19.17 TOTAL REVENUES AND OTHER SOURCES $17.790,680 100.00% - 8 - The most significant increase in actual continued revenue sources during 1988 was the increase In sales tax. In August 1987, the State of Texas expanded the sales tax base through the expansion of the sales tax to include various services. The State Controller's Office projects that the expansion of the tax base, statewide, increased total sales tax collections by 8%. Proceeds from the local 1% sales tax increased approximately 15% for comparable twelve-month reporting periods. The higher local growth number reflects the • strength in the commercial sector of the local economy. The following schedule presents a summary of General Fund and Debt Service Fund expenditures for the fifteen months ended September 30, 1988. As with the revenue summary, comparisons to the previous fiscal year have not been included. Percent Function Total, of Total Current: General Government $4,968,662 29.54% Police 3,883,961 23.09 Fire 2,943,886 17.50 Public Services 1,561,876 9.28 Parks& Recreation 2,401,189 14.27 LESS: reimbursed administrative costs (3,818,632) (22.70) Debt Service: principal 1,795,053 10.67 interest 2,018,331 12.00 Capital Outlay 1.068.070 6.35 TOTAL EXPENDITURES $16.$22.396 100.00% General Fund Balance. The unrestricted fund balance of the General Fund increased by 13.1% in 1988, resulting from General Fund revenues higher than budgeted and the controlling of General Fund expenditures. The $183,292 increase provides the City with a fund balance that is equivalent to 20 working days of expenditures. That fund balance is viewed as a reasonable and prudent reserve under the City Council policy on reserve levels. Property taxes received during fiscal year 1988 were based on a tax levy of 38 cents per $100 of assessed valuation. Under Texas state statues, assessed valuation represents 100% of market value. The total assessed valuation of $1,100,349,519 represents a 1.89% decrease from fiscal year 1987. While the total City property tax levy has remained constant at 38 cents, allocation of that revenue has changed, based on changing funding requirements: Purpose 1988 1987 1986 General Fund $.0900 $.0200 $.0200 Debt Service Fund .2900 .3600 .3600 Total Tax Rate $.380Q $.380Q $.3800 _ g _ Utility Enterprise Funds. The City of College Station operates electric, water, sewer, and sanitation services for the benefit of the citizens. The Electric Utility presently purchases 100% of its electric power from Gulf States Utility under a contract valid through 1992. The City is served through three 138 KVA transmission lines, tied to a ring bus at the City switching station. The City is a member of the Lone Star Municipal Power Agency, a joint action agency authorized by the 68th Legislature of Texas in 1983. That agency was formed for the purpose of seeking and securing a long term, reliable and economic power supply for member cities. Since 1981, the City has had the capability to produce and deliver 100% of its water needs through development of its own water well and aquaduct system. This system includes three wells with a combined capacity of 12 million gallons per day, and a delivery system of 14 miles of 30-inch diameter pipeline with two pumping stations. Sewer treatment is provided to the community through two wastewater treatment plants. The Lick Creek plant was completed and came on-line during 1988. The two plants have a combined treatment capacity of 9.4 million gallons per day as compared to average current daily demand of 6 million gallons per day. Sanitation services are provided to the citizens through a combination of residential curbside pick-up and commercial dumpster services. The City owns and operates a municipal landfill operation. Summary financial information of the combined utility enterprise funds for the fifteen months ended September 30, 1988 is as follows: OPERATING REVENUES: Amount Electric $37,214,726 Water 5,098,674 Sewer 3,418,472 Sanitation 1,840,022 • Other 566,469 OPERATING EXPENDITURES: Wholesale Power Purchases (22,561,871) Salaries& Benefits (3,932,444) Supplies&Services (3,675,868) Administrative Transfer (3,506,328) Depreciation (2,238,983) NONOPERATING REVENUES: (EXPENSES) Interest Earnings 1,594,449 Interest Expense (3,726,592) Other, Net 76,760 TRANSFER TO GENERAL FUND IN LIEU OF TAXES (5.454.3531 NET INCOME $4.713.133 - 10 - In governmental accounting for enterprise fund operations, capital expenditures and the repayment of principal on outstanding debt are not included in the above analysis. When those items are taken into consideration, net working capital increased by the amount of $1,409,392 during this fifteen month financial reporting period. Increases in net working capital have been used to build prudent reserve levels as required by City Council policies. Debt Administration. To take advantage of favorable interest rates during fiscal 1988, the City refunded the callable maturities of certain series of General Obligation Bonds and Certificates of Obligation. The City issued $10,445,000 in General Obligation Refunding Bonds, Series 1987 to effect the transaction. Savings to the City of approximately$400,000 will be realized over the life of the refunding issue as a result of that action. In May of 1988, the City issued $1,500,000 in contract obligations to finance activities of the M.I.S. project, discussed above. In July 1988, to refinance that debt under favorable interest rates from General Obligation debt and to refinance a balloon payment from contract obligations previously issued to finance property acquisition, $2,850,000 General Obligation Refunding Bonds, Series 1988 were issued. The City has maintained its A+ rating from Standard & Poor's Corporation and Al rating from Moody's Investors Service. As of September 30, 1988, the City had a total of$20,993,888 in General Obligation Bonds and $462,943 in outstanding Certificates of Obligation. That debt, equal to$405 per capita, is serviced by revenues from the local property tax. Under current state statutes, the City's ability to increase the mill levy for property taxation is subject to a maximum cap of $2.50 per$100 valuation. That cap includes property tax levies for all jurisdictions legally allowed to tax real property. Current total mill levy is $1.876 per$100 valuation. The Utility Fund has an additional$30,863,968 in total debt, serviced through utility charges. Cash management. Cash temporarily idle during the financial reporting period was invested in accordance with a banking services and investment contract between the City and a local banking institution. Under that contract, the City specified the maturity date of the investment and the bank issued a certificate of deposit with an interest rate equal to the Treasury Bill rate of an equal maturity plus fifteen basis points (a basis point equals 1/100th of one percent). Collateral for these certificates of deposit was held by a banking affiliate of the local depository with collateral holdings reported to the City. During the fifteen months ended September 30, 1988, the City earned $2,466,750 on an average portfolio balance of $30 million for an annualized rate of 6.58%. Proceeds of the 1988 debt issue were handled separately, with funds invested in U.S. Government obligations through a safekeeping account established with First City National Bank of Houston. All investment activity of the City is handled in accordance with Resolution 1-14-88-10, authorizing and implementing the City of College Station Investment Policy. That policy, established as required by state law and in conformity with state investment statutes, ensures the safety of all funds entrusted to the City, the availability of those funds for the payment of all necessary obligations of the City, and provides for the investment of funds in interest-bearing securities. Safety of the principal invested is always the primary concern. - 11 - The banking services and investment agreement expired on September 30, 1988. Effective October 1, 1988, the City entered Into a new agreement with NCNB - Texas National Bank, A&M Branch, separating investments from traditional banking services. The City currently invests funds in the full range of investments allowable under state law. Accounts have been established with major brokerages for the purchase and sale of U.S. Government obligations and Master Repurchase Agreements have been entered into by the City. All purchases and sales of securities are delivery-versus-payment through a safekeeping account at the City's third-party bank. As of December 31, 1988, subsequent to the period covered by this financial report, the City's investment portfolio consisted of the following: Bank Demand Accounts $2,334,000 7.1% Overnight Repurchase Agmts 5,615,000 17.0 Insured Cert. of Deposits 4,350,000 13.1 U.S. Gov't Obligations 13,280,000 40.2 Government Agency Notes 7.465.000 22.6 TOTAL $33.045,000 100.0% OTHER INFORMATION Independent Audit. State statutes require an annual audit by independent certified public accountants. The accounting firm of Deloitte Haskins & Sells has been retained by the City Council for this function. In addition to meeting the requirements set forth in state statutes, the audit also was designed to meet the requirements of the federal Single Audit Act of 1984 and related OMB Circular A-128. The independent auditors' report on the general purpose financial statements and combining and individual fund statements and schedules is included in the financial section of this report. The auditor's reports related specifically to the single audit are issued separately. Awards. The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of College Station for its Comprehensive Annual Financial Report for the fiscal year ended June 30, 1987. This was the seventh consecutive year that the City has received this prestigious award. In order to be awarded a Certificate of Achievement, the City published an easily readable and efficiently organized Comprehensive Annual Financial Report. This report satisfied both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current Comprehensive Annual Financial Report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. - 12 - Acknowledgements. The preparation of this report on a timely basis could not have been accomplished without the efficient and dedicated services of the entire staff of the Finance Department. We would like to express our appreciation to all members of the department who assisted and contributed to its preparation. We would also like to thank the Mayor and City Council for their interest and support in planning and conducting the financial operations of the City in a responsible and progressive manner. Finally, we would like to thank our auditors, Deloitte Haskins & Sells, whose professional expertise and advice have resulted in continuing improvements in the quality of the City's financial reporting. Respectfully submitted, ) 961,4 Ron Ragland William P. Harrison City Manager Director of Finance • - 13 - (This page intentionally left blank.) - 14 - Certificate of Achievement • for Excellence in Financial Reporting Presented to City of College Station, Texas For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 1987 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. • ra5Le.„e=4;.444, arans t� Efk��s ,g L ,r President Z‘ee i CMCN� Executive Director - 15 - (This page intentionally left blank.) - 16 - FINANCIAL SECTION - 17 - (This page intentionally left blank.) - 18 - Deloitte Haskins+Sells 1200 Travis Houston, Texas 77002-6054 (713) 651-1700 ITT Telex: 4995640 INDEPENDENT AUDITORS' REPORT Mayor Larry Ringer and Members of City Council of the City of College Station, Texas We have audited the accompanying general purpose financial statements of the City of College Station, Texas ("City") as of September 30, 1988 and for the fifteen months then ended, listed in the foregoing table of contents. These financial statements and the supplemental statements and schedules discussed below are the responsibility of the City's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, such general purpose financial statements present fairly, in all material respects, the financial position of the City at September 30, 1988 and the results of its operations and the changes in financial position of its proprietary fund types and pension trust fund for the fifteen months then ended in conformity with generally accepted accounting principles. Our audit also comprehended the combining, individual fund and account group financial statements and schedules listed in the foregoing table of contents. In our opinion, such supplemental information, when considered in relation to the general purpose financial statements, presents fairly in all material respects the information shown therein. The accompanying statistical tables, listed in the foregoing table of contents, were not audited by us and, accordingly, we express no opinion on them. 4 10414irn, January 6, 1989 - 19 - (This page intentionally left blank.) - 20 - (This page intentionally left blank.) - 21 - CITY OF COLLEGE STATION. TEXAS COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS SEPTEMBER 30, 1988 Governmental Fund Tvoes Special Debt Capital ASSETS General Revenue Service Projects Cash on hand and in bank (Note 2) $ 25.754 $163,500 $ 490,972 $289.643 Investments (Note 2) 550,000 1.400,000 5.325,000 Receivables: Delinquent taxes (Note 3) 61,954 427.755 Accounts Less allowance for uncollectible accounts (113,643) Paving assessments 232,334 Accrued interest 23,043 702 8.513 Ambulance services 21.395 Grants 10,628 76,740 Other 111,209 5,433 Foundation (Note 4) 3.000,000 Due from other funds (Note 11) 1.569,358 143,002 48 Inventories 101,203 Prepaid costs 68,376 25 Restricted assets: Cash in bank (Note 2) 260,194 Investments (Note 2) 1.283,935 Due from other funds Property and equipment (Note 5) Accumulated depreciation Deferred charges Amount available for retirement of bonded indebtedness Amount to be provided for: Retirement of bonded indebtedness Accrued vacation leave TOTAL ASSETS $7,205,740 $245,698 $2.462,431 $5.623.204 See notes to general purpose financial statements. - 22 - Fiduciary Proprietary Fund Types Fund Type Account Groups General General Total Internal Pension Fixed Long-Term (Memorandum Enterprise Service Trust Assets Debt Only) $ 1.131.847 $ 63,066 $ 363 $ 2.165,145 5,500,000 250,000 13,025.000 489,709 5.634.679 5.634,679 (419,091) (532.734) 232.334 780 225 33,263 21.395 87,368 89,366 117.821 323.829 3,000.000 246,342 221,076 2,179,826 1.267,973 1,369.176 73.404 31,500 173.305 2.359.337 2,619.531 10,550.000 11,833,935 18,412 18,412 67,552,800 $40,112,265 107,665,065 (13.526.471) (13.526.471) 312,844 312,844 $2,028,950 2.028,950 19,427,881 19,427.881 554.899 554.899 $80,792,222 $683,688 $363 $40,112.265 $22.011.730 $159.137,341 (Continued) - 23 - CITY OF COLLEGE STATION. TEXAS COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS (Continued) SEPTEMBER 30. 1988 Governmental Fund Tvpes Special Debt Capital LIABILITIES General Revenue Service Proiects Accounts payable $ 238,744 $ 50,417 $ 1.500 $ 1.383 Accrued liabilities 187.210 4,118 Retainage payable 1.372 6,869 12,165 Due to other funds (Note 11) 81,553 54,630 108 Obligation under capital lease-current (Note 13) Liabilities payable from restricted assets: Construction contracts and retainages payable Accrued interest payable Revenue bonds - current portion General obligation bonds - current portion Certificates of obligation - current portion Customers' meter deposits Refundable deposits 1.759 7,908 Deferred revenues - other 308,055 427.755 Deferred revenues - Foundation (Note 4) 1.683.127 Unamortized discount - Foundation (Note 4) 1,316,873 Long-term debt (Note 6): Revenue bonds General obligation bonds Certificates of obligation Obligation under capital lease (Note 13) Accrued vacation leave 31.861 Total liabilities 3.850.554 119.824 433,481 13.548 FUND EQUITY Contributed capital Investment in general fixed assets Retained earnings: Reserved for debt service Unreserved Fund balances: Reserved (Note 14) 214.264 104.069 2,028,950 259.124 • Unreserved: Designated for subsequent years' expenditures 1.561.313 4.291.997 Undesignated 1.579.609 21.805 1.058.535 Total fund equity 3.355.186 125.874 2.028.950 5.609.656 TOTAL LIABILITIES AND FUND EQUITY $7.205,740 $245.698 $2.462.431 $5.623.204 See notes to general purpose financial statements. - 24 - Fiduciary Proprietary Fund Types Fund Type Account Groups General General Total Internal Pension Fixed Long-Term (Memorandum Enterprise Service Trust Assets Debt Only) $ 2.154,585 $2,446,629 233,085 $224,048 648,461 20,406 2,043,535 2,179,826 318.488 318,488 99,244 99.244 382.710 382.710 2,545,000 2,545,000 378,679 378,679 26.247 26.247 1.950.477 1.950,477 9.667 3,810 739,620 1,683,127 1,316,873 24,285,000 24.285.000 3.290,547 $20,993,888 24.284,435 262.001 462.943 724.944 3,418.191 3.418,191 99.478 554.899 686.238 41.491.077 224.048 22.011.730 68.144.262 10.264.348 10,264,348 $40.112,265 40,112.265 2.642,764 2.642.764 26,394.033 459,640 26,853,673 $ 363 2.606,770 5,853.310 2.659.949 39,301,145 459.640 363 40.112.265 90,993,079 $80.792,222 $683.688 $ 363 $40.112.265 $22.011.730 $159.137.341 - 25 - CITY OF COLLEGE STATION. TEXAS COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30, 1988 Governmental Fund Types Total Special Debt Capital (Memorandum REVENUES General Revenue Service Projects Only) Taxes $ 5,565.184 $ 735.927 $3.411.171 $9,712,282 Permits 139,412 139,412 Fines 478.114 478,114 City services provided 487,541 487,541 Grants 61.439 451.987 513,426 Interest 133.174 5,552 185,466 462.744 786.936 Other 259.179 176.705 110 435,994 Total revenues 7.124.043 1.370.171 3.596.637 462.,854 12,553.705 EXPENDITURES Current: Administration 1 ,676,939 1,676,939 Finance 1,736.427 1,736.427 Public service 1,561.876 1,561,876 Police 3,883,961 3,883.961 Fire 2,943,886 2.943.886 Engineering 1.425.427 1,425.427 Parks 2.401.189 2.401,189 Housing rehabilitation 332.770 332.770 Reimbursed administrative expenditures (3,818.632) 431.274 8/.556 (3,299.802) Other 129,869 600,007 43.060 772,936 Capital outlay 1.068.070 2,572 878,614 1.949.256 Debt service: Principal retirement 1,795.053 1.795,053 Interest and fiscal charges 2.018.331 2.018,331 Total expenditures 13.009,012 1.366.623 3.813.384 1.009.230 19.198.249 Excess (deficiency) of revenues over expenditures (5.884.969) 3.548 (216.747) (546.376) (6.644,544) OTHER FINANCING SOURCES (USES): Operating transfers in (Note 12) 5,570.140 136,991 5,707,131 Bond Proceeds • 1,500.000 12,694.852 14,194,852 Payment to Escrow Agent (12.807,014) (12,807,014) Operating transfers out (Note 12) (30,000) (117.010) (339.788) 486,798 Other 113.582 113.582 Total other financing sources (uses) 7.153.722 (117.010) (314.959) 6.725.953 Excess (deficiency) of revenues and other financing sources over expenditures and other uses 1,268.753 (113,462) (531.706) (546.376) 77,209 FUND BALANCES, JULY 1, 1987 2.086,433 239.336 2.560.656 6.156.032 11,042,457 FUND BALANCES, SEPTEMBER 30, 1988 $3.355.186 $125,874 $2.028.950 $5,609,656 $11,119,666 See notes to general purpose financial statements. - 26 - CITY OF COLLEGE STATION. TEXAS COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (NON-GAAP BASIS) GENERAL FUND FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30. 1988 Variance Favorable REVENUES Budget Actual (Unfavorable) Taxes $ 5,379.714 $ 5,569.483 $ 189.769 Permits 110,125 139.108 28,983 Fines 468,500 478.114 9.614 City services provided 416,000 487.541 71,541 Grants 65.000 61.439 (3.561) Interest 46,300 77,076 30.776 Other 176.200 259.683 83.483 Total revenues 6.661.839 7.072.444 410.605 EXPENDITURES Current: Administration 1,741.673 1,681.917 59,756 Finance 1.838.770 1,737,450 101,320 Public service 1.672,002 1.564,120 107,882 Police 4.014.737 3.889,941 124,796 Fire 3,041,875 2.938.251 103.624 Engineering 1.548,308 1.425.283 123,025 Parks 2.400,031 2,395.599 4,432 Reimbursed administrative expenditures (3.835,961 (3.818,632) (17,329) Other 237.518 161.279 76.239 Housing rehabilitation Capital outlay 473.374 465.846 7.528 Total expenditures 13.132.327 12.441.054 691.273 Excess (deficiency) of revenues over expenditures (6.470,488) (5,368,610) 1,101,878 OTHER FINANCING SOURCES Operating transfers in 5,569.870 5.569.870 Total other financing sources 5.569.870 5.569.870 EXCESS (DEFICIENCY) OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES $ (900.618) $ 201.260 $1.101.878 See notes to general purpose financial statements. - 27 - CITY OF COLLEGE STATION. TEXAS COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (GAAP BASIS) SPECIAL REVENUE FUNDS FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30. 1988 Variance Favorable Revenues: Budget Actual (Unfavorable) Taxes $ 736.500 $ 735,927 $ (573) Grants 1.771,779 486,764 (1.285.015) Interest 10.000 5,551 (4.449) Other 52.000 142.729 90.729 Total Revenues 2.570.279 1.370.971 (1.199.308) Expenditures: Current: Reimbursed Administrative expenditures 487.369 431,274 56,095 Other 701,834 691.515 10.319 Housing Rehabilitation 1.432,304 332,770 1.099.534 Capital outlay 2.572 2.572 Total expenditures 2.624,079 1.458,131 1 .165.948 EXCESS (DEFICIENCY) OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES $ (53.800) $ (87.160) $ (33.360) - 28 - CITY OF COLLEGE STATION. TEXAS COMBINED STATEMENT OF REVENUES. EXPENSES AND CHANGES IN FUND EQUITY - ALL PROPRIETARY FUND TYPES AND PENSION TRUST FUND FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30. 1988 Fiduciary Proprietary Fund Tvpes Fund Type Total Internal Pension (Memorandum Enterprise Service Trust Only) OPERATING REVENUES: Electric $ 37,214,725 $ 37,214,725 Water 5,098,674 5,098.674 Sewer 3,418.472 3,418,472 Sanitation 1.840,022 1,840.022 Premiums 5 1,349,858 1,349,858 Other 566.469 $ 4.200 570.669 Total operating revenues 48.138.362 1.349.858 4.200 49.492.420 OPERATING EXPENSES: Purchased power (Note 8) 22,561,871 22,561.871 Salaries and benefits 3.932.444 3,932,444 Supplies 410.944 410,444 Building maintenance 20.662 20.662 Equipment maintenance 516,028 516.028 Services 2.278,005 2.278.005 Claims 1.099,808 1,099,808 Administration fee 71.271 71,271 Premiums 121,722 121,722 Other 450,229 273,170 4,949 728,348 Administrative expenses from general fund 3.506,328 3,506,328 Depreciation: Electrical system 715,984 715,984 Water system 837,501 837,501 Sewer system 550,553 550.553 Sanitation system 132.145 132.145 Other 2.800 2.800 Total operating expenses. 35.915.494 1.565.972 4.949 37.486.415 OPERATING INCOME 12.222.868 (216.114) (749) 12.006.005 NONOPERATING REVENUES (EXPENSES): Interest earnings 1.594,449 18,249 235 1,612.933 Interest expense (3.726,592) (3,726.592) Other, net 76.760 76.760 Total nonoperating revenues (expenses) (2.055.383) 18.249 235 (2.036.899) (Continued) - 29 - CITY OF COLLEGE STATION. TEXAS COMBINED STATEMENT OF REVENUES. EXPENSES AND CHANGES IN FUND EQUITY - ALL PROPRIETARY FUND TYPES AND PENSION TRUST FUND (Continued) FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30, 1988 Fiduciary Proprietary Fund Types Fund Tvpe Total Internal Pension (Memorandum Enterprise Service Trust Only) Income before operating transfers $10,167,485 $ (197,86G) $(514) $ 9.969.106 Operating transfers to general fund (Note 12) (5.454.353) (5.454.353) Net income 4.713,132 (197,865) (514) 4,514,753 FUND EQUITY. JULY 1. 1987 34.588.013 657.505 877 35.246.395 FUND EQUITY. SEPTEMBER 30, 1988 $39,301 .1.45 $ 459.640 $363 $39,761,148 See notes to general purpose financial statements. - 30 - CITY OF COLLEGE STATION. TEXAS COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION - ALL PROPRIETARY FUND TYPES AND PENSION TRUST FUND FOR THE YEAR ENDED SEPTEMBER 30. 1988 Fiduciary Proorietary Fund Tvpes Fund Tvpe Total Internal Pension (Memorandum Enterprise Service Trust Only) SOURCES OF WORKING CAPITAL: Operations: • Net income $4,713,132 $(197.865) $(514) $4,514,753 Items not requiring working capital : Depreciation 2,238.985 2.238,985 Amortization of deferred charges 54.690 54.690 Loss on sale of assets 11.934 11.934 Working capital provided by operations 7.018,741 (197,865) (514) 6,820,362 Decrease in restricted assets 3,100.776 3.100,776 Proceeds from refunding bonds 181,743 181,743 Increase in accrued vacation leave 2.268 2.268 Total sources of working capital 10.303.528 (197.865) (514) 10.105.149 USES OF WORKING CAPITAL: Additions of property and equipment 4.524,240 4,524.240 Principal payments: Revenue bonds 2,605,000 2,605,000 General obligation bonds 369,631 369,631 Certificates of obligation 83.012 83.012 Capital lease 361.627 361,627 Decrease in Certificate of Obligation payable due to refunding 56,813 56,813 Decrease in payable from restricted assets 810,622 810.622 Decrease in deferred revenues 76,075 76,075 Decrease in accrued vacation leave 4.547 4,547 Other, net 2.569 2.569 Total uses of working capital 8.894.136 8.894.136 INCREASE (DECREASE) IN WORKING CAPITAL $1.409.392 $(197.865) $(514) $1.211.013 - 31 - CITY OF COLLEGE STATION. TEXAS COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION - ALL PROPRIETARY FUND TYPES AND PENSION TRUST FUND (Continued) FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30, 1988 Fiduciary Proprietary Fund Type Fund Type Total Internal Pension (Memorandum Enterprise Service Trust Only) ELEMENTS OF NET INCREASE (DECREASE) IN WORKING CAPITAL: Cash on hand and in bank $ 254.056 $ (31.723) $ (698) $ 221.635 Investments 104,000 (1.000) 353.000 Receivables 1,716.320 (16) 1,716.304 Due from other funds (98.567) (377.995) (476.562) Inventories 17.913 17.913 Prepaid costs (20.496) 17.565 (2,931) Accured interest (31.102) 223 (30.879) Accounts receivable- miscellaneous 11,619 117.821 129,440 Accounts payable (440,902) (440,902) Accrued liabilities (84.273) (173.756) (258,029) Due to other funds 37.031 1,200 38.231 Obligation under capital lease - current (32.302) (32.302) Deferred revenues (23,905) (23.905) INCREASE (DECREASE) IN WORKING CAPITAL $1,409.392 $(197.865) $ (514) $1.211.013 See notes to general purpose financial statements. - 32 - CITY OF COLLEGE STATION,TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30, 1988 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES REPORTING ENTITY The City of College Station ("City") has included in the general purpose financial statements the accounts of all city operations for which the Mayor and City Council have oversight responsibility. Such oversight responsibility includes designation of management, selection of governing authority, the ability to significantly influence operations, the scope of public service, and the accountability for fiscal matters. The City's major operations, which are covered by this oversight responsibility include police and fire protection, streets, sanitation, health, art-cultural, parks, public improvements, planning and zoning, general administrative services, electrical, and water and sewer systems. The College Station Industrial Development Foundation was created in 1981 to encourage development of an industrial park through the issuance of tax-exempt financing. In fiscal year 1986, the College Station Industrial Development Foundation was restructured as the College Station Economic Development Foundation ("Foundation") with the purpose of accumulating funds for the improvement of commercial or industrial property in the City, and buying and selling real property In College Station to promote the public interest. The Foundation is administered by a separate board and is not subject to oversight by the Mayor and City Council. Consequently, financial information for the Foundation is not included within the scope of these financial statements. FUND ACCOUNTING The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses, as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped, in the accompanying financial statements, into seven generic fund types and three broad fund categories as follows: Governmental Fund Types The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than special assessments, expendable trusts, and major capital projects). The Debt Service Fund is used to account for the accumulation of resources for, and the payment of, general long-term debt principal, interest, and related costs. Capital Project Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by proprietary funds). - 33 - CITY OF COLLEGE STATION. TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30, 1988 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES-(Cont'd) FUND ACCOUNTING-(Cont'd) Proprietary Fund Types Enterprise Funds are used to account for operations (a)that are financed and operated in a manner similar to private business enterprises - where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis are to be financed or recovered primarily through user charges; or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. Internal Service Funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the City, or to other governments, on a cost-reimbursement basis. Fiduciary Fund Tvp_e The Pension Trust Fund is used to account for assets held by the City in a trustee capacity for private organizations and Individuals. The Pension Trust Fund is accounted for in essentially the same manner as proprietary funds since capital maintenance is critical. ACCOUNT GROUPS Account groups are used to establish accounting control and accountability for the City's general fixed assets and general long-term debt. The following are the City's account groups: General Fixed Assets Account Group - This account group is established to account for all fixed assets of the City, other than those accounted for in the proprietary funds. General Lona-term Debt Account Group- This account group is established to account for all long- term debt of the City except that accounted for in the proprietary funds. General long-term debt of the City includes general obligation bonds, certificates of obligations and accrued vacation leave. BASIS OF ACCOUNTING All governmental funds are accounted for using the modified accrual basis of accounting. Under this basis, revenues are recognized when they become measurable and available as net current assets. Available means collected within the current year or soon enough thereafter to be used to pay liabilities of the current year. Substantially all revenues are considered to be susceptible to accrual. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. Exceptions to this general rule are the principal and interest on general long-term debt which are recognized when due, and accrued vacation leave which is recognized when expected to be liquidated with expendable available financial resources. - 34 - CITY OF COLLEGE STATION.TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30, 1988 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES-(Cont'd) All proprietary funds and the pension trust fund are accounted for using the accrual basis of accounting. Their revenues are recognized when they are earned, and their expenses are recognized when they are incurred. Utility customers are billed monthly on a cycle-billing basis with revenues recorded when customers are billed, except at year-end when unbilled revenues are accrued. POWER COST RECOVERY The City is allowed to recover purchased power costs as power cost adjustments. This power-cost recovery allows for the pass-through of power costs to the customers and has no impact on net income. The amount of any under or over recovered purchased power costs at year-end was not material. BUDGETS AND BUDGETARY ACCOUNTING The City follows these procedures in establishing the budgetary data reflected in the financial statements: 1) Prior to September 1, the City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following October 1. The operating budget includes proposed expenditures and the means of financing them. 2) All budget requests are compiled by the Finance Department and presented with comparative and supporting data to the Mayor and City Council for review. 3) Public hearings are properly advertised and conducted at City Hall for taxpayer comments. 4) Prior to September 27, the budget is legally enacted through passage of an ordinance. 5) The City Council must approve all transfers of budgeted amounts between departments within any fund and any revision that alters the total expenditure of any fund. An amount is also budgeted each year for contingencies which may arise. The Council has authorized the City Manager to make budget transfers for contingencies if the amount does not exceed $10,000. All other transfers must be approved by City Council. City Council may transfer amounts among individual budget line items within major expenditure categories during the year, but no such transfer may increase the overall total of the budget. Budgeted amounts as originally adopted were not significantly changed by such transfers during the period. 6) Expenditures in excess of appropriations for each fund are prohibited by the City Charter. Appropriations which have not been expended or lawfully encumbered lapse at the end of the budget year. -35 - CITY OF COLLEGE STATION, TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30, 1988 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES-(Cont'd) 7) Formal budgetary integration is legally enacted and employed as a management control device during the year for the General Fund, Special Revenue Funds, and the Enterprise Funds. Formal budgetary integration is not employed for the Debt Service Fund and Capital Project Funds because effective budgetary control is alternatively achieved through general obligation bond indenture provisions. BUDGETS AND BUDGETARY ACCOUNTING-(Cont'dl. The General Fund budget is adopted on a basis that differs from generally accepted accounting principles ("GAAP"), as follows: (a) The City does not include revenue or expenditure activity for the Parks Escrow Fund or Computer Project Fund, which are combined with the General Fund for reporting purposes, in General Fund budgetary amounts. (b) Budgeted revenue amounts do not include a provision for property tax receipt accruals. (c) Encumbrances for capital Items which do not lapse at year-end are treated as budgeted expenditures In the year the commitment to purchase is made. (d) General Fund budgetary amounts do not include provisions for adjustments in accrued vacation leave or the allowance for uncollectible accounts receivable. Adjustments necessary to convert the General Fund revenues at September 30, 1988, on the GAAP basis to the budgetary basis are as follows: Revenues-GAAP basis $7.124,043 Reconciling items: Parks Escrow Fund revenues (24,115) Computer Project Fund Revenues (29,402) Other 1,918 Total reconciling items (51.5991 Total revenues-Budget (Non-GAAP basis) $7.072.444 - 36 - CITY OF COLLEGE STATION,TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30, 1988 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES-(Cont'd) BUDGETS AND BUDGETARY ACCOUNTING-(Cont'd) Adjustments necessary to convert the General Fund expenditures at September 30, 1988, on the GAAP basis to the budgetary basis are as follows: Expenditures-GAAP basis $13.009,012 Reconciling items: Parks Escrow Fund expenditures (159,468) Computer Project expenditures (369,055) Current year encumbrances 44,685 Prior year encumbrances (23,182) Adjustment to vacation accrual (31,861) Adjustment to allowance for uncollectible accounts (8,037) Other (21.040) Total reconciling items (567,958) Total expenditures- Budget(Non-GAAP basis) $12,441,054 Budgets for the Enterprise Funds are adopted on a basis consistent with GAAP, except for the following significant items: (a) Capital outlay is included in the budget as an expense item. (b) Transfers to the Debt Service Fund for debt principal payments, relating to General Obligation Bonds and Certificates of Obligation which are serviced by the Utility Fund, are treated as expenses for budgetary purposes. (c) The budget considers principal payments for Utility Revenue Bonds as an expense item. (d) Enterprise Fund budgetary amounts do not include provisions for adjustments in accrued vacation leave or the allowance for uncollectible accounts receivable. (e) The City does not budget for depreciation on Enterprise Fund property and equipment. (f) Budgeted revenue amounts do not include a provision for revenue accruals. - 37 - CITY OF COLLEGE STATION. TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30, 1988 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES-(Cont'd) BUDGETS AND BUDGETARY ACCOUNTING-(Cont'd) See the schedule at page 93 for a reconciliation of revenues and expenses (non-GAAP basis) to the GAAP basis statement of income for the Utility Fund and the Sanitation Fund. Budgets for the Special Revenue Funds are adopted on a basis consistent with GAAP. Budgetary comparisons presented in the report are on the aforementioned budgetary basis. Budgetary amounts are as originally adopted, or as amended by the City Council. Individual amendments were not material in relation to the original appropriations which were amended. BUDGET ADMENDMENTS City Charter requires that a petition be signed by 100 registered voters of the City, prior to City Council's consideration of an ordinance amending upward the total of any fund of the City. That process was followed to amend the fiscal year 1988 budget to include the interim period required to change the City's fiscal year-end to September 30. All budget amounts in this report are based on the budget, as amended, for the fifteen month period July 1, 1987 through September 30, 1988. ENCUMBRANCES Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of formal budgetary integration in the General Fund, Special Revenue Funds and Capital Project Funds. Encumbrances outstanding at year-end are reported as reservations of fund balances since they do not constitute expenditures or liabilities in the GAAP basis general purpose financial statements. INVENTORY Inventory is valued at the lower of average cost or market value. The City records inventory as an asset in the General Fund with a corresponding reserve of fund balance. Inventory is recorded in Proprietary Funds as an asset with no corresponding reserve in fund balance. Other funds have no significant inventories. GENERAL FIXED ASSETS General fixed assets have been acquired for general government purposes. Asset purchases are recorded as expenditures in the governmental fund types and capitalized at cost in the General Fixed Assets Account Group. Public domain fixed assets consisting of improvements other than buildings are also included in General Fixed Assets. - 38 - CITY OF COLLEGE STATION.TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30, 1988 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES-(Cont'd) GENERAL FIXED ASSETS-(Cont'd) No depreciation has been provided on general fixed assets, nor has interest been capitalized. PROPERTY AND EQUIPMENT Property and equipment owned by the enterprise funds is stated at the historical cost of construction, or with respect to contributions in aid of construction from third parties (principally developers) at an estimated value which approximates cost of construction. Interest is not capitalized in these accounts because interest is recovered currently in the City's rate calculation. Maintenance, repairs and minor renewals are charged to operating expense; major property replacements are capitalized. Depreciation is recorded in the enterprise funds on a straight-line basis over the following estimated service lives: Utility Systems 25 -40 years Buildings and Improvements 5 -50 years Equipment 3 - 10 years ACCRUED VACATION AND SICK LEAVE Employees are credited with vacation at rates of 10 to 15 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 leave that is expected to be liquidated with expendable available financial resources is reported as an expenditure and a liability of the General Fund. Amounts of accumulated vacation leave that are not expected to be liquidated with expendable available financial resources are reported in the General Long-Term Debt Account Group. Employees are credited with sick leave at the rate of one day per month and are allowed to accumulate up to 120 days. Payment for unused accumulated sick leave is not made to employees by the City and, accordingly, no liability has been recorded in the financial statements. - 39 - CITY OF COLLEGE STATION. TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30, 1988 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES-(Cont'd) SELF-INSURANCE The City is self-insured for health benefits, and the plan is administered by Employee Benefit Management, Inc. The Employee Benefits Fund is funded monthly by contributions from employees and from the operating funds of the City. These contributions are actuarially determined. The City has a stop-loss insurance policy that limits its liability per employee to $50,000 per Incident with an aggregate, annual liability of $250,000. The liability for outstanding losses includes approximately$100,000 for claims incurred but not reported. The City is self-insured for workers' compensation benefits and the plan is administered by Texas Political Subdivisions. The Workers' Compensation Fund is funded by actuarially determined contributions from the operating funds of the City. The City has a stop-loss insurance policy that limits its liability per employee to $200,000 per incident. The amount for estimated outstanding losses for claims Incurred but not reported is not material and, accordingly, there is no liability recorded at September 30, 1988. TOTAL COLUMNS ON COMBINED STATEMENT-OVERVIEW Total columns on the General Purpose Financial Statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns does not present financial position, results of operations, or changes in financial position in conformity with generally accepted accounting principles. Neither is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. 2. CASH AND INVESTMENTS The City's bank balances at September 30, 1988 were $5,221,124 and were entirely covered by federal depository insurance or by pledged collateral held by the pledging financial institution's agent in the City's name. Such total collateralization and insurance coverage is required by State of Texas statutes. State statutes authorize the City to invest in fully-collateralized or fully-insured time deposits, direct debt securities of the United States, and fully collateralized repurchase agreements. The repurchase agreements must be purchased pursuant to a master repurchase agreement which specifies the rights and obligations of both parties and which requires that the securities involved in 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). The City did not invest in any repurchase agreements during the fifteen months ended September 30, 1988. • • - 40 - CITY OF COLLEGE STATION.TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30, 1988 2. CASH AND INVESTMENTS-(Cont'd) The City's investments at September 30, 1988, are shown below. The carrying amount is the cost at date of purchase and approximates market. Category Carrying Market 1 2 Amount Value Included in Current Assets: Time Deposit $13,025,000 $13,025,000 $13,025,000 Included in Restricted Assets: Time Deposits $4,300,000 6,550,000 10,850,000 10,850,000 Treasury Bills and Note 983.935 983.935 989.340 Total $5.283.935 $19.575.000. $24.858.935 $24.864.340 CATEGORY 1 INVESTMENTS are U.S. Government Securities held by the City or by its agent in the City's name, and bank certificates of deposit fully insured or collateralized with securities held by the City or by its agent in the City's name. At September 30, 1988, U.S. Government securities were held in the City's name by its agent, First City National Bank of Houston, and $4,300,000 was invested in fully insured certificates of deposit through First RepublicBank Packaged Affiliate Certificates Program. CATEGORY 2 INVESTMENTS are bank certificates of deposit collateralized with securities held by the pledging financial institution's trust department or agent in the City's name. As of September 30, 1988, the City had investments of $19,575,000 in certificates of deposit in this category under contract with First RepublicBank. 3. PROPERTY TAXES Property is appraised and a lien on such property becomes enforceable as of January 1. Taxes are levied on and payable October 1. The Brazos County Tax Office bills and collects property taxes for the City. City property tax revenues are recognized when levied to the extent that they are collected in the current year. The balance is reported as deferred revenues. Taxes become delinquent February 1 of the following year and are subject to interest and penalty charges. The City is permitted by the State of Texas to levy taxes up to $2.50 per $100 of assessed valuation for general governmental services and for the payment of principal and interest on general long- term debt. The combined current tax rate to finance general government services including debt service for the fifteen months ended September 30, 1988, was$.38 per$100 of assessed valuation. - 41 - CITY OF COLLEGE STATION. TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30, 1988 3. PROPERTY TAXES-(Cont'd) The Brazos County Appraisal District ("Appraisal Districts') is responsible for the recording and appraisal of property for all taxing units in the County. The Appraisal District is required to assess property at 100% of its appraised value. Real property must be reappraised at least every four years. The City may, at its own expense, require annual reviews by the Appraisal District through various appeals and, if necessary, legal action. Under this system if the rate, excluding tax rates for bonds and other contractual obligations adjusted for new improvements, exceeds the rate for the previous year by more than 8%, qualified voters of the City may petition for an election to determine whether to limit the tax rate to no more than 8%above the tax rate of the previous year. 4. NOTE RECEIVABLE During 1986, the City sold land valued at $943,894 to the Foundation (see Note 1). In exchange for this land, the City received a $3,000,000 noninterest-bearing promissory note to be repaid at face value in ten years or whenever the Foundation sells the land, whichever comes first. In addition, the Foundation has agreed to share profits with the City related to the eventual sale of the land by the Foundation and to comply with certain financial covenants and legal restrictions. 5. FIXED ASSETS A summary of changes in general fixed assets for the fifteen months ended September 30, 1988, are as follows: Additions Retirements Beginning and and Ending Balance Transfers In Tranfers Out Balance Land $4,370,223 $ 78,089 $ 4,448,312 Buildings and Improvements $8,452,468 2,371,728 (3,925) 10,820,271 Pavings, Sidewalks and Streets 11,174,582 343,718 11,518,300 Machinery, Tools and Equipment 5,539,552 763,185 (13,894) 6,288,843 Motor Vehicles 1,532,701 238,108 (240,162) 1,530,647 Parks and Recreation Equipment 5,246,774 165,979 (2,600) 5,410,153 Construction in Progress 2,133.71Q 1.309,674 (3.347,645) 95,739 Total $38.450,010 $5.270,481 (3,608,226) $40,112,265 - 42 - CITY OF COLLEGE STATION.TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30, 1988 5. FIXED ASSETS-(Cont'd) A summary of proprietary fund type property and equipment of the enterprise funds at September 30, 1988, is as follows: Utility Sanitation Fund Fund Total Electric System $13,704,914 $13,704,914 Water System 26,577,012 26,577,012 Sewer System 18,469,464 18,469,464 Sanitation System 1,904,160 $1,827,074 3,731,234 Other 55,190 55,190 Buildings and Improvements 3,246,614 3,246,614 Land 1,565,286 1,565,286 Construction in Progress 203,086 203.086 Total 65,670,536 1,882,264 67,552,800 Less Accumulated Depreciation (12.284,814) (1.241.657) (13.526.471) Net �`� 385�,722 640,607 $54.026.329 3 6. LONG-TERM DEBT The following is a summary of long-term debt transactions for the fifteen months ended September 30, 1988: Beginning Incurred/ Ending Balance Issued Matured Balance Governmental Fund Types General Obligation Bonds $18,411,000 $13,049,388 $10,466,500 $20,993,888 Certificates of Obligation 1,977,487 1,500,000 3,014,544 462,943 Accrued Vacation Leave 487,557 1,300.295 1.132.953 554,899 Subtotal 20.876.044 15.749.683 14.613,997 22,011,730 Proprietary Fund Types Utility Revenue Bonds 29,435,000 2,605,000 26,830,000 General Obligation Bonds Serviced by Utility Revenues 3,849,000 189,857 369,631 3,669,226 Certificates of Obligation Serviced by Utility Revenues 456,432 168,184 288,248 Accrued Vacation Leave: Utility Fund 82,994 97,351 101,898 78,447 Sanitation Fund 18,765 30,814 28,546 21,033 Obligations under Capital Lease-(note 13) 4.098.306 361.627 3,736,679 Subtotal 37,484,065 774,454 3.634,886 34,623.633 Total Long-Term Debt $58.360.109 $16.524.137 $18.248,883 $56.635,363 - 43 - CITY OF COLLEGE STATION.TEXAS. NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30, 1988 6. LONG-TERM DEBT-(Cont'd) Long-term debt at September 30, 1988, consisted primarily of bonds maturing serially and is summarized as follows: Interest Series Principal Rates (%) Matgreg Balance General Obligation Bonds: 1968 Issue 4.40-6.00 1995 $ 280,000 1971 Issue 4.70-7.00 1991 75,000 1976 Issue 4.00-6.00 1997 675,000 19781 Issue 4.70-6.00 1998 319,500 1978 11 Issue 5.15-5.80 1999 1,670,000 1981 Issue 4.50-7.70 2004 10,199,388 1982 I Issue 6.50-8.15 1996 2,850,000 198211 Issue 9.00-11.00 1993 1,775,000 1984 Issue 9.50-11.00 1995 3.150,000 Subtotal 20.993,888 Certificates of Obligation: Ladder Truck 60% of Prime 1994 252,346 C of C Building 57.5% of Prime 1993 210,597 Subtotal 462,943 Utility Revenue Bonds- 1985 Refunding Issue 6.00-9.50 2001 26,830,000 General Obligation Bonds Serviced by Utility Revenues: 1976 Issue 4.00-6.00 1997 2,025,000 19781 Issue 4.70-6.00 1998 1,455,500 1987 Sewage Treatment Plant 4.50-7.70 2004 188.726 Subtotal 3.669,226 Certificates of Obligation Serviced by Utility Revenues: Utility Service Center 12.00 1999 288,248 Total $52,236,143 - 44 - CITY OF COLLEGE STATION,TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30, 1988 6. LONG-TERM DEBT-(Cont'd) Debt service requirements to maturity for all bonds are summarized as follows: General Certificates Obligation Bonds of Obligation Year Principal Interest Principal Interest 1989 $ 1,751,321 $ 1,533,813 $ 100,415 $ 32,585 1990 1,806,669 1,374,582 107,495 25,505 1991 1,887,017 1,232,200 115,107 17,893 1992 1,898,583 905,634 123,292 9,708 1993 1,689,151 949,758 16,634 912 1994-1998 8,062,180 2,635,986 1999-2003 3,451,884 675,149 2004 447,083 17.213 Total $20.993,888 $9.324,335 $ 462.943 $ 86.603 General Obligation Utility Bonds Serviced by Revenue Bonds Utility Revenues Year Principal Interest Principal Interest 1989 $2,545,000 $2,213,370 $ 378,679 $ 187,134 1990 2,465,000 2,022,414 378,331 167,490 1991 2,415,000 1,830,295 377,983 148,390 1992 2,375,000 1,635,726 376,417 128,842 1993 2,275,000 1,441,070 370,849 109,268, 1994-1998 10,835,000 4,277,298 1,712,820 251,736 1999-2001 3.920.000, 498.937 74,147 12,176 Total $26.830.000, $13.919.110 $3.669.226 $ 1,005.036 Certificates of Obligation Serviced by Utility Revenues Year Principal Interest 1989 $26,200 $34,584 1990 26,200 31,440 1991 26,200 28,296 1992 26,200 25,152 1993 26,200 22,008 1994-1998 131,048 62,880 1999 26.200 3.144 Total $288,248 $207.504 -45 - CITY OF COLLEGE STATION.TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30, 1988 6. LONG-TERM DEBT-(Cont'd) All the net revenues of the Utility Fund 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 resolution, include substantially all of the revenues and expense of the Utility Fund other than certain interest income and expense and depreciation and amortization. This bond resolution further requires that the net revenues, as defined, equal at least 1A0 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. During fiscal year 1988, the City refunded the callable maturities of certain series of General Obligation Bonds and Certificates of Obligation. Details of the debt refunding are as follows: Maturities Principal Debt Series Refunded Refunded General Obligation Bonds: 1981 Issue 1989-1991 $ 450,000 1982 I Issue 1989-1992 1,100,000 1982 II Issue 1994-2000 3,325,000 1984 Issue 1996-2004 4,050,000 Subtotal 8.925.000 Certificates of Obligation: Sewage Treatment Plant 1989-1991 85,219 Community Center 1988-1991 160,000 Subtotal 245.219 Total Refunded $9.170.219 The City issued$10,445,000 of General Obligation bonds to effect the transaction. The proceeds of the refunding bond issue were used to acquire government securities to be placed in an escrow account held by a trustee. The securities and related investment earnings will provide sufficient funds to meet all debt service requirements and the call provisions of the refunded debt. The City estimates that savings of approximately$400,000 will be realized over the life of the refunding issue. - 46 CITY OF COLLEGE STATION. TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE ENDED SEPTEMBER 30, 1988 6. LONG-TERM DEBT-(Cont'd) Also during fiscal year 1988, the City refunded the callable maturities of a certain Certificate of Obligation and a public finance obligation. Details of the refunding are as follows: Maturities Principal Debt Service Refunded Refunded Certificate of Obligation - High-Tech Park 1989 $1,150,907 Public Finance Obligation 1989-1992 1.500.000 $2.650.907 The City issued $2,850,000 of General Obligation bonds to effect the transaction. The proceeds of the refunding bond issue were used to acquire government securities to be placed in an escrow account held by a trustee. The securities and related investment earnings will provide sufficient funds to meet all debt service requirements and call provisions of the refunded debt. In prior years, the City defeased certain revenue refunding bonds totaling $39,610,000 by placing the proceeds of the refunding bonds in an irrevocable trust to provide for all future debt service on the refunded bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the City's general purpose financial statements. At September 30, 1988, the outstanding principal balance of these defeased bonds was$26,830,000. 7. BONDS AVAILABLE FOR SALE Authorized general obligation bonds available for future issue are as follows: Year Authorized Unissued Amount Street improvements 1984 $2,800,000 Maintenance and storage buildings 1984 925,000 Drainage improvements 1984 1,230,000 Public Buildings 1984 700,000 Civic center 1976 500,000 Total $6.155.000 Revenue bonds, authorized in fiscal year 1984, remain unissued in the amount of $5,000,000 and are available for future use. - 47 - CITY OF COLLEGE STATION.TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30, 1988 8. CONTRACT WITH GULF STATES UTILITIES The City purchases substantially all of its electrical power requirements from Gulf States Utilities ("Gulf States"). This contract requires the City's monthly minimum load to be not less than 15 kilowatts nor less than 60% of the City's greatest maximum load (experienced during the previous 12 months) adjusted for Gulf States' power factor. The City's monthly Gulf States bill averages $1,504,000. 9. RETIREMENT PLAN The City provides pension benefits for all of its full-time employees through a joint contributory, defined contribution plan in the state-wide Texas Municipal Retirement System ("TMRS"), an agent multiple-employer public employee retirement system with over 500 plans currently in operation. All full-time City employees are participants in TMRS. Plan members can retire at ages 60 and above with 10 or more years of service or at ages 50-59 with 25 or more years of service or with 28 years of service regardless of age. A member is vested after 10 years, but he must leave his accumulated contributions in the plan. TMRS also provides disability benefits after ten years of service credit. These benefit provisions and all other requirements are established by State statute with certain options available by participating municipalities. The contribution rate for the employees is 5%, and the City's matching percent is currently 200%, both as adopted by the governing body of the City. Under the state law governing TMRS, the City's contribution rate is annually determined by the actuary. Currently, the unfunded actuarial liability is being amortized over a 25-year period which began in January 1988. The City's total payroll for the fifteen months ended September 30, 1988 was $13,537,581, and the City's contributions were based on a payroll of $12,861,559. Both the City and the covered employees made the required contributions, amounting to $680,759 (5.1% of covered payroll for the months in calendar year 1987 and 5.43% for the months in calendar year 1988) for the City and $643,995 (5%)for the employees. Also, the City contributed approximately.035% of the earnings of eligible employees during fiscal year 1988 to provide supplemental disability benefits. There were no related party transactions, and the City has no further liability to employees or TMRS under the plan. The amount shown below as the "pension benefit obligation" is a standardized measure of the present value of pension benefits estimated to be paid in the future as a result of employee service to date. The measure is intended to help users assess the funding status of TMRS on a going- concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among employers. The measure is the actuarial present value of credited projected benefits, and is independent of the funding method used to determine contributions to TMRS. - 48 - CITY OF COLLEGE STATION, TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30, 1988 9. RETIREMENT PLAN-(Cont'd) The total unfunded pension benefit obligation at December 31, 1987, the latest available information, is as follows: Pension Benefit Obligation: Annuitants currently receiving benefits $692,359 Terminated employees 609,937 Current employees Accumulated employee contributions including allocated invested earnings 3,199,540 Employer-financed vested 3,471,658 Employer-financed nonvested 1.879,277 Total 9,852,771 Net assets available for benefits, at book value 7.299.624 Unfunded pension benefit obligation $2.553.147 The market value of the TMRS'assets are 105 percent of book value. The significant actuarial assumptions used to compute the actuarially determined contribution requirement are the same as those used to compute the pension benefit obligation. Trend information for retirement contributions on an eight and ten year reporting period is not available. In addition to providing pension benefits, the City provides certain health care benefits for retired employees. Substantially all employees may become eligible for such benefits if they reach normal retirement age while working for the City. The health care benefits are provided through a self- insurance plan administered by Employee Benefit Management, Inc. (see note 1). During fiscal year 1988, six retirees were eligible under this plan; however, claims filed by these retirees were not material. The City's Pension Trust Fund is used to account for the accumulation of resources to be used for annuity payments of the Fireman's Relief and Retirement Fund. The fund does not account for the administrative costs, which are borne by the General Fund. Resources are contributed by employees at an annual fixed rate. The City has voluntarily contributed amounts as needed to maintain the solvency of the fund. The potential future liabilities related to these payments appear to be minimal due to the fact that it is estimated by the City that there are approximately 5 or less past employees who could become eligible for these$25 per month payments in the future. - 49 - CITY OF COLLEGE STATION. TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30, 1988 10. SEGMENT INFORMATION OF ENTERPRISE FUNDS The City maintains two enterprise funds. Segment information for the fifteen months ended September 30, 1988, is as follows (amounts in thousands): Utility Sanitation Fund Fund Total Operating revenues: Electrical system $37,215 $37,215 Water system 5,099 5,099 Sewer system 3,418 3,418 Sanitation system $1,840 1,840 Other 566 566 Depreciation 2,107 132 2,239 Operating income (loss) before operating transfers 10,338 (170) 10,168 Operating transfers, net (5,454) (5,454) Net income (loss) 4,883 (170) 4,713 Property and equipment: Additions 11,083 279 11,362 Retirements (6,914) (6,914) Net working capital 8,425 350 8,775 Total assets 79,695 1,098 80,793 Bonds and other long-term liabilities excluding current portion 31,334 31,334 Total equity 38,331 970 39,301 11. INTERFUND BALANCES Individual fund interfund receivable and payable balances at September 30, 1988, were: I nterfund Interfund Receivabtel Pavables General Fund $ 1,569,358 $ 81,553 Enterprise Funds: Utility Fund 19,818 1,976,176 Sanitation Fund 226,524 67,359 Debt Service Fund 143,002 108 Special Revenue: Hotel/Motel Tax Fund 29,471 Community Development Fund 25,159 Internal Service: Workmans Compensation Fund 73,238 Employee Benefits Fund 147,838 Capital Projects Fund: GOB 1982 II 1 GOB 1984 47 Total $2.179.826 $2.179,826 - 50 - CITY OF COLLEGE STATION.TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30, 1988 12. OPERATING TRANSFERS Individual fund operating transfers in and operating transfers out for fiscal 1988 were as follows: Operating Operating Transfers In Transfers Out General Fund $5,570,140 $30,000 Special Revenue Fund: Hotel/Motel Tax 117,010 Debt Service Fund 136,991 339,788 Utility Fund 5.454.353 Total $5.824.141 $5,824,141 13. COMMITMENTS Minimum future lease payments and present value of the net minimum lease payments for capital leases for waterwell facilities are as follows: Year Endina September 30. Total 1989 $ 592,999 1990 592,999 1991 592,999 1992 592,999 1993 592,999 1994-2001 2.063.605 Total minimum lease payments 5,028,600 Less imputed interest (1.291.921) Present value of net minimum lease payments $3.736.679 14. RESERVATIONS OF FUND BALANCES Fund balances have been reserved at September 30, 1988, as follows: General Fund: Reserved for encumbrances $ 44,685 Reserved for prepaid costs 68,376 Reserved for inventories 101,203 Special Revenue- Reserved for encumbrances 104,069 Debt Service-reserved for debt service 2,028,950 Capital Projects- reserved for encumbrances 259,124 Internal Service-Reserved for Employee Benefits 459,640 Trust Funds Reserved for fireman's relief and retirement 363 Total $3.066.410 - 51 - (This page intentionally left blank.) - 52 - SUPPLEMENTAL FINANCIAL INFORMATION - 53 - (This page intentionally left blank.) - 54 - GENERAL FUND To account for all financial resources traditionally associated with government which are not required to be accounted for in another fund. - 55 - CITY OF COLLEGE STATION. TEXAS GENERAL FUND SCHEDULE OF REVENUES AND OTHER FINANCING SOURCES - BUDGET AND ACTUAL (NON-GAAP BASIS) FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30. 1988 Variance Favorable Budget Actual (Unfavorable) TAXES: Current tax revenues $ 990.530 $ 924.438 $ (66.092) Delinquent ad valorem 19.800 25.930 6.130 Tax penalty and interest 11.157 16.885 5.728 Franchise 319,627 344,609 24.982 Mixed drinks 88.600 88,491 (109) Sales 3.950.000 4.169.130 219.130 Total taxes 5.379.714 5.569.483 189.769 PERMITS: Builder 62.500 69,958 7,458 Electrical 11.500 11.294 (206) Plumbing 18.000 30,998 12.998 Mixed drinks 18.125 14,235 (3,890) Health 12.593 12.593 Other 30 30 Total permits 110.125 139.108 28.983 FINES: Municipal court 420,000 426,827 6,827 Warrant services fees 24,375 21,675 (2,700) Other 24.125 29.612 5.487 Total fines 468,500 478,114 9.614 CITY SERVICES PROVIDED: Ambulance service 68,750 109,765 41,015 Adamson Pool 65.700 75.904 10,204 Thomas Pool 32.700 43.365 10,665 Other recreational 248.850 258.507 9.657 Total city services provided 416.000 487.541 71.541 INTEREST INCOME 46.300 77,076 30.776 (Continued) - 56 - CITY OF COLLEGE STATION, TEXAS GENERAL FUND SCHEDULE OF REVENUES AND OTHER FINANCING SOURCES - BUDGET AND ACTUAL (NON-GAAP BASIS) (Continued) FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30. 1988 Variance Favorable Budget Actual (Unfavorable) OTHER: Licenses $ 3.200 $ 3,573 $ 373 Fees and certificates 10,875 11.972 1.097 Paving assessments 50.000 41.955 (8,045) Sale of cemetery plots and other property 17.500 58.179 40.679 Rentals 19.625 19.855 230 Grants 65,000 61,439 (3,561) Other revenues 75.000 124.149 49.149 Total other 241.200 321.122 79.922 TOTAL REVENUES 6.661.839 7.072.444 410.605 OTHER FINANCING SOURCES: From utility fund 5.454,353 5,454.353 From sanitation fund 115.517 115.517 Total other financing sources 5.569.870 5.569.870 TOTAL GENERAL FUND REVENUES $12.231.709 $12.642.314 $ 410.605 AND OTHER FINANCING SOURCES - 57 - CITY OF COLLEGE STATION. TEXAS GENERAL FUND SCHEDULE OF EXPENDITURES COMPARED WITH BUDGET (NON-GAAP BASIS) FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30, 1988 Variance Favorable Budget Actual (Unfavorable) ADMINISTRATION: Administration and City Manager: Salaries and benefits $ 405,905 $ 405,649 $ 356 Supplies 15.971 15,970 1 Equipment maintenance 2.660 3,126 (466) Services 151.075 134.426 16.649 Sundry 33.600 16.349 17.251 Capital outlay - equipment 9.295 9,887 (592) Capital outlay - buildings 1.100 857 243 Total administration and city manager 619.606 586.164 33.442 Personnel : Salaries and benefits 127,976 126,230 1.746 Supplies 3.638 3,213 425 Equipment maintenance 790 1.135 (345) Services 17,980 18,764 (784) Sundry 2.819 2,402 417 Capital outlay - equipment 2.896 2.838 57 Total personnel 156.098 154.582 1.516 Legal : Salaries and benefits 207.054 207,810 (756) Supplies 15.423 15,422 1 Equipment maintenance 3.191 3,347 (156) Services 49,177 43.902 5,275 Sundry 2.176 1,372 804 Capital outlay - equipment 3.317 3.317 Total legal 280.338 275.170 5.168 Energy: Salaries and benefits 75,630 71.575 4,055 Supplies 13,075 8.539 4,536 Equipment maintenance 24,910 24.185 725 Services 10.935 10,853 82 Sundry 2.150 784 1.366 Capital outlay - equipment 943 933 10 Total energy 127.643 116.869 10.774 (Continued) - 58 - CITY OF COLLEGE STATION. TEXAS GENERAL FUND SCHEDULE OF EXPENDITURES COMPARED WITH BUDGET (NON-GAAP BASIS) (Continued) FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30. 1988 Variance Favorable Budget Actual (Unfavorable) . Management Information Services: Salaries and benefits $ 147.502 $ 144,467 $ 3,035 Supplies 13,128 12,574 554 Equipment maintenance 49.187 44,095 5,092 Services 36.483 36.482 1 Sundry 3.490 3,556 (66) Capital outlay - buildings 40.000 40,721 (721) Capital outlay - equipment 16,008 16.007 1 Total management information svcs. 305.798 297.902 7.896 Printing/Mail : Salaries and benefits 83,485 83,652 (167) Supplies 2.258 1.774 484 Equipment maintenance 6.489 6.715 (226) Services 8,663 8.177 486 Sundry 1.018 950 68 Capital outlay - equipment 1.800 1.714 86 Total printing/mail 103.713 102.982 731 Library: Salaries and benefits Supplies Building maintenance 288 284 4 Services 222.786 223,249 (463) Sundry 761 989 (228) Capital outlay - equipment 5.486 4.798 688 Total library 229,321 229.320 1 TOTAL ADMINISTRATION 1.822.517 1.762.989 59.528 FINANCE: Fiscal Administration: Salaries and benefits 67.931 57,592 10.339 Supplies 1,763 971 792 Equipment maintenance 625 250 375 Services 30.013 24,899 5,114 Sundry 1.033 976 57 Capital outlay - equipment 4.424 3.723 701 Total fiscal administration 105,789 88.411 17.378 (Continued) - 59 - CITY OF COLLEGE STATION. TEXAS GENERAL FUND SCHEDULE OF EXPENDITURES COMPARED WITH BUDGET (NON-GAAP BASIS) (Continued) FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30. 1988 Variance Favorable Budget Actual (Unfavorable) Accounting: Salaries and benefits $ 190.211 $ 177,066 $ 13.145 Supplies 7.938 6.306 1.632 Building maintenance Equipment maintenance 1.390 1,235 155 Services 109,126 98,175 10.951 Sundry 1,380 1.668 (288) Capital outlay - equipment 2.970 2.969 1 • Total accounting 313.015 287.419 25.596 Tax: Salaries and benefits 70.602 69,905 697 Supplies 3,250 2.871 379 Equipment maintenance 618 580 38 Services 104.500 101.111 3,389 Sundry 2.787 2.721 66 Capital outlay - equipment 2.515 2.479 36 Total tax 184.272 179.667 4.605 Utilities: Salaries and benefits 576,040 552.976 23.064 Supplies 67,978 62,014 5,964 Equipment maintenance 7,735 6.978 757 Services 44,273 44,310 (37) Sundry 6.714 5,975 739 Capital outlay - equipment 7.872 7.810 62 Total utilities 710.612 680.063 30.549 Purchasing: Salaries and benefits 113.656 113.268 388 Supplies 2.930 2,824 106 Equipment maintenance 1.310 1.170 140 Services 13,092 11.871 1,221 Sundry 3,774 2,801 973 Capital outlay - equipment 515 481 34 Total purchasing 135.277 132.415 2.862 (Continued) - 60 - CITY OF COLLEGE STATION. TEXAS GENERAL FUND SCHEDULE OF EXPENDITURES COMPARED WITH BUDGET (NON-GAAP BASIS) (Continued) FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30. 1988 Variance Favorable Budget Actual (Unfavorable) Warehouse: Salaries and benefits $ 36,570 $ 36.568 $ 2 Supplies 1.837 2,530 (693) Building maintenance Equipment maintenance 1.062 485 577 Services 29.382 19,528 9,854 Sundry 792 1.615 (823) Capital outlay -equipment 3.900 3.285 615 Total warehouse 73.543 64.011 9.532 Meter Services: Salaries and benefits 190.670 185,683 4.987 Supplies 13.475 9.299 4,176 Equipment maintenance 2.197 1.794 403 Services 3.401 3.382 19 Sundry 3,332 3.431 (99) Capital outlay - equipment 577 408 169 Capital outlay - motor vehicles 22.170 21.967 203 Total meter services 235.822 225.964 9.858 BUDGET/RESEARCH: Salaries and benefits 111,067 111.066 1 Supplies 1.675 1,186 489 Equipment maintenance 98 33 65 Services 11,687 9.736 1,951 Sundry 856 602 254 Capital outlay - equipment 638 (638) Total budget/research 125.383 123.261 2.122 TOTAL FINANCE 1.883.713 1.781.211 102.502 PUBLIC SERVICE: Administration: Salaries and benefits 171,232 159,871 11,361 Supplies 3,999 3,483 516 Equipment maintenance 2.876 1.806 1.070 Services 36,799 36,798 (1) Sundry 1.611 2,205 (594) Capital outlay - equipment 300 249 51 Total administration 216.817 204.412 12.405 (Continued) - 61 - CITY OF COLLEGE STATION. TEXAS GENERAL FUND SCHEDULE OF EXPENDITURES COMPARED WITH BUDGET (NON-GAAP BASIS) (Continued) FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30, 1988 Variance Favorable Budget Actual (Unfavorable) Streets: Salaries and benefits $ 547.550 $ 534.614 $ 12.936 ' Supplies 34.753 26.006 8.747 Equipment maintenance 346,371 296.792 49.579 Services 18,178 16.502 1.676 Sundry 25.416 25.845 (429) Capital outlay - equipment 725 530 195 Capital outlay - motor vehicles 16.200 15.675 525 Total streets 989.193 915.964 73.229 Garage: Salaries and benefits 292,082 292,082 Supplies 51,135 49.733 1,402 Equipment maintenance 7,735 7.271 464 Services 1,123 301 822 Sundry 3,486 2,772 714 Capital outlay - equipment 413 411 2 Total garage 355,974 352.570 3.404 Cemetery and Ground Maintenance: Salaries and benefits 119,053 102.124 16.929 Supplies 4,759 2.934 1.825 Equipment maintenance 2,500 1.650 850 Sundry 1,344 1.361 (17) • Capital outlay - equipment 3.954 3.479 475 Total cemetery and ground maint. 131.610 111.548 20.062 TOTAL PUBLIC SERVICE 1.693.594 1.584.494 109.100 (Continued) • -62 - CITY OF COLLEGE STATION. TEXAS GENERAL FUND SCHEDULE OF EXPENDITURES COMPARED WITH BUDGET (NON-GAAP BASIS) (Continued) FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30. 1988 Variance Favorable Budget Actual (Unfavorable) POLICE: Police Administration: Salaries and benefits $ 326,317 $ 307.543 $ 18.774 Supplies 10.663 9.141 1.522 Equipment maintenance 5.090 1.011 4.079 Services 21,691 21.603 88 Sundry 12,138 10.517 1.621 Capital outlay - equipment 3.841 3.802 39 Total police administration 379.740 353.617 26.123 Uniformed Bureau: Salaries and benefits 1,587,097 1.560,971 26,126 Supplies 123.442 120,922 2,520 Equipment maintenance 36,981 33.401 3,580 Services 46,235 44.830 1.405 Sundry 61,816 61,815 1 Capital outlay - equipment 9,794 9.760 34 Capital outlay - motor vehicles 186.608 184.546 2.062 Total uniformed bureau 2.051.973 2.016.245 35.728 Investigation: Salaries and benefits 407.124 403,727 3.397 Supplies 21.972 18.244 3,728 Equipment maintenance 6.309 4.096 2,213 Services 12.715 7.522 5,193 Sundry 12,808 12,847 (39) Capital outlay - equipment 4.659 4.203 456 Total investigation 465.587 450.639 14,948 Special Services Bureau: Salaries and benefits 184,720 179,370 5,350 Supplies 16,232 13.009 3,223 Equipment maintenance 5,756 5.475 281 Services 64,515 58,503 6,012 Sundry 9.727 9.726 1 Capital outlay - equipment 2,856 3.051 (195) Total special services bureau 283.806 269.134 14.672 (Continued) - 63 - CITY OF COLLEGE STATION. TEXAS GENERAL FUND SCHEDULE OF EXPENDITURES COMPARED WITH BUDGET (NON-GAAP BASIS) (Continued) FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30. 1988 Variance Favorable Budget Actual (Unfavorable) Municipal Court: Salaries and benefits $ 134.058 $ 129,913 $ 4.145 Supplies 11,917 11,122 795 Building maintenance Equipment maintenance 11,646 9.008 2.638 Services 63,472 49,310 14,162 Sundry 1,031 1.119 (88) Capital outlay - equipment 3.218 2.937 281 Total municipal court 225.342 203,409 21.933 Records: Salaries and benefits 150,587 147.163 3.424 Supplies 14,444 12.492 1.952 Equipment maintenance 26.213 23.892 2.321 Services 25,289 25.289 Sundry 6,642 6,641 1 Capital outlay - equipment 18.231 18.230 1 Total records 241.406 233.707 7.699 Communications and Jails: Salaries and benefits 424.325 420.926 3,399 Supplies 7,552 6.109 1,443 Building maintenance Equipment maintenance 16.753 15.224 1,529 Services 129.240 129.240 Sundry 18.220 18,220 Capital outlay - building 475 475 Capital outlay - equipment 855 1.067 (212) Total communications and jails 597.420 590.786 6.634 TOTAL POLICE • 4.245.274 4.117.537 127.737 FIRE: Fire Administration: Salaries and benefits 184,217 183,821 396 Supplies 4.068 2,790 1.278 Equipment maintenance 11,016 6.391 4.625 Services 20,351 18.051 2,300 Sundry 2.188 2.020 168 Total fire administration 221.840 213.073 8.767 (Continued) - 64 - CITY OF COLLEGE STATION. TEXAS GENERAL FUND SCHEDULE OF EXPENDITURES COMPARED WITH BUDGET (NON-GAAP BASIS) (Continued) FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30, 1988 Variance Favorable Budget Actual (Unfavorable) Fire Operations: Salaries and benefits $ 1.953,223 $1,922,289 $ 30.934 Supplies 38.368 34.157 4,211 Equipment maintenance 45,666 36.788 8.878 Services 63.437 49,296 14,141 Sundry 27.729 26.107 1,622 Capital outlay - equipment 11.764 11.122 642 Total fire operations 2.140.187 2.079.759 60.428 Fire Prevention: Salaries and benefits 188.384 185,942 2.442 Supplies 12,191 10,384 1,807 Equipment maintenance 3,409 3,070 339 Services 5.688 3.274 2,414 Sundry 3,283 2.912 371 Capital outlay - equipment 10.574 10.070 504 Total fire prevention 223.529 215.652 7.877 Ambulance: Salaries and benefits 410,093 391,103 18,990 Supplies 23,564 22,759 805 Equipment maintenance 9,410 8.152 1,258 Services 16,071 12,551 3,520 Sundry 19,519 16,394 3.125 Capital outlay - equipment 7,899 7.577 322 Total ambulance 486.556 458.536 28.020 TOTAL FIRE 3.072.112 2.967.020 105.092 ENGINEERING: Engineering Administration: Salaries and benefits 150,568 141.383 9,185 Supplies 8.929 3,064 5.865 Equipment maintenance 2,313 2.039 274 Services 15,598 12.196 3,402 Sundry 1,014 1.143 (129) Capital outlay - equipment 4.600 4.494 106 Total engineering administration 183.022 164.319 18.703 (Continued) - 65 - CITY OF COLLEGE STATION. TEXAS GENERAL FUND SCHEDULE OF EXPENDITURES COMPARED WITH BUDGET (NON-GAAP BASIS) (Continued) FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30, 1988 Variance Favorable Budget Actual (Unfavorable) Engineering: Salaries and benefits $ 446,486 $ 415.358 $ 31,128 Supplies 13,652 11,039 2,613 Building maintenance Equipment maintenance 49,873 44.225 5,648 Services 54.261 39,890 14,371 Sundry 6.247 5,727 520 Capital outlay - equipment 2.332 1.960 372 Total engineering 572.851 518.199 54.652 Planning: Salaries and benefits 201,111 194,926 6.185 Supplies 5,335 4.409 926 Equipment maintenance 1.513 720 793 Services 19,872 18.213 1.659 Sundry 4.593 3,552 1,041 Capital outlay - equipment 2,180 2.044 136 Total planning 234.604 223.864 10.740 Building Inspection: Salaries and benefits 346,369 316,417 29.952 Supplies 6,642 5.887 755 Building maintenance Equipment maintenance 13,271 10,020 3,251 Services 21,930 19.212 2,718 Sundry 5.302 4,637 665 Capital outlay - equipment 2,726 2.738 (12) Total building inspection 396.240 358.911 37.329 Community Development: Salaries and benefits 138,656 138.848 (192) Supplies 3,697 2,539 1,158 Building maintenance Equipment maintenance 1,823 1,433 390 Services 25.498 25.457 41 Sundry 3.755 2,949 806 Capital outlay - equipment 2.520 2.054 466 Total community development 175.949 173.280 2.669 TOTAL ENGINEERING 1.562.666 1.438.573 124.093 (Continued) - 66 - CITY OF COLLEGE STATION. TEXAS GENERAL FUND SCHEDULE OF EXPENDITURES COMPARED WITH BUDGET (NON-GAAP BASIS) (Continued) FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30, 1988 Variance Favorable Budget Actual (Unfavorable) PARKS: Parks Administration: Salaries and benefits $ 219,549 $ 217.749 $ 1.800 Supplies 7.684 7.457 227 Equipment maintenance 3,881 4.456 (575) Services 25,878 25.341 537 Sundry 3.334 3.503 (169) Capital outlay - equipment 3.900 3.888 12 Total parks administration 264.226 262.394 1.832 Recreation: Salaries and benefits 278,846 278,846 Supplies 37,784 37,693 91 Equipment maintenance 4,336 4.327 9 Services 168.014 167,907 107 Sundry 18,018 18,128 (110) Capital outlay - equipment 3,536 3,536 Concession operations 45.550 45.542 8 Total recreation 556.084 555.979 105 Aquatics: Salaries and benefits 260.935 260.929 6 Supplies 32.024 32.024 Equipment maintenance 26,788 26,739 49 Services 77,484 77,540 (56) Sundry 18,035 18.034 1 Capital outlay - equipment 8.321 8.279 42 Total aquatics 423.587 423.545 42 Parks Maintenance: Salaries and benefits 535.905 535.892 13 Supplies 29.842 29,808 34 Equipment maintenance 59.398 59,340 58 Services 67,882 67.882 Sundry 7.421 7,419 2 Capital outlay - equipment 15.723 16.303 (580) Capital outlay - motor vehicles 16.500 15.920 580 Total parks maintenance 732.671 732.564 107 (Continued) - 67 - CITY OF COLLEGE STATION. TEXAS GENERAL FUND SCHEDULE OF EXPENDITURES COMPARED WITH BUDGET (NON-GAAP BASIS) (Continued) FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30, 1988 Variance Favorable Budget Actual (Unfavorable) Forestry: Salaries and benefits $ 134,336 $ 133.952 $ 384 Supplies 14,527 14.107 420 Equipment maintenance 4,339 4.380 (41) Services 4,321 3,956 365 Sundry 1.909 1.850 59 Capital outlay - equipment 265 265 Total forestry 159.697 158.245 1.452 Teen Center: Salaries and benefits 21,111 21.019 92 Supplies 1,831 2,133 (302) Building maintenance Equipment maintenance 1,823 2.320 (497) Services 8.084 7,132 952 Sundry 718 953 (235) Total teen center 33.567 33.557 10 Lincoln Center: Salaries and benefits 67.815 66.953 862 Supplies 7,780 7,779 1 Maintenance 4,108 5,264 (1.156) Services 18,987 18,599 388 Sundry 1.976 1.833 143 Capital outlay - equipment 417 589 (172) Total Lincoln Center 101.083 101.017 66 Community Center: Salaries and benefits 104,561 104.420 141 Supplies 11.526 9.021 2.505 Equipment maintenance 9,111 9.650 (539) Services 39,781 40,778 (997) Sundry 12,799 12,766 33 Capital outlay - equipment 2.201 2.680 (479) Total community center 179.979 179.315 664 TOTAL PARKS 2.450.894 2.446.614 4.280 - 68 - CITY OF COLLEGE STATION, TEXAS GENERAL FUND SCHEDULE OF EXPENDITURES COMPARED WITH BUDGET (NON-GAAP BASIS) (Continued) FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30, 1989 Variance Favorable Budget Actual (Unfavorable) NONDEPARTMENTAL: Emergency preparedness E 5.000 $ 3,594 $ 1.406 Contribution to R.S.V.P. 2.500 (2,500) Contribution to airport 25,000 25.000 Contingency 59,758 59,758 Contribution to Economic Development Foundation 100.000 100,000 Transfer - Sanitation Fund 30,000 30,000 Customer Service Training 17.760 186 17.574 TOTAL NONDEPARTMENTAL 237.518 161,280 76.238 Subtotal 16,968,288 16,259,687 708,601 Less reimbursed administrative expenditures (3.835.961) (3.818.632) (17.329) TOTAL EXPENDITURES $13,132,327 $12441.055 $691.272 - 69 - (This page intentionally left blank.) - 70 - SPECIAL REVENUE FUNDS Community Development - to account for funds granted to the City by the National Department of Housing and Urban Development for use on various community improvement projects. Hotel/Motel Tax - to account for the receipt and expenditure of funds received by the City from the assessment of hotel and motel occupancy tax. Usage of funds is restricted to construction and maintenance of convention and civic facilities, and promotion of tourism and arts within the City. - 71 - CITY OF COLLEGE STATION. TEXAS ALL SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET SEPTEMBER 30, 1988 Hotel/ Community Motel Development Tax Total ASSETS Cash on hand and in bank $128,085 $35,415 $163.500 Receivables: Grants 76,740 76,740 Other 2,454 2,979 5.433 Prepaid costs 25 25 TOTAL ASSETS $207.279 $38.419 $245.698 LIABILITIES AND FUND BALANCES LIABILITIES: Accounts payable $ 48,177 $ 2,240 $ 50,417 Retainage payable 6,869 6,869 Due to other funds 25.159 29,471 54,630 Refundable deposits 7.908 7.908 Total liabilities 80.205 39.619 119.824 FUND BALANCES: Reserved for encumbrances 104,069 104.069 Unreserved - undesignated 23.005 (1.200) 21.805 Total fund balances 127.074 (1.200) 125.874 TOTAL LIABILITIES AND FUND BALANCES $207.279 $38.419 $245.698 - 72 - CITY OF COLLEGE STATION. TEXAS ALL SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30. 1988 Hotel/ Community Motel Development Tax Total REVENUES: Taxes $ 735.927 $735,927 Grants $ 451.987 451,987 Interest 5,552 5,552 Other 120.429 56.276 176.705 Total revenues 572.416 797.755 1.370.171 EXPENDITURES: Current: Reimbursed administrative expenditures 251,027 180,247 431,274 Housing rehabilitation 332,770 332.770 Other 44,500 555.507 600,007 Capital outlay 2.572 2.572 Total expenditures 630.869 735.754 1.366.623 Excess (deficiency) of revenues over expenditures (58,453) 62.001 3,548 OTHER FINANCING USES: Operating transfers out (117.010) (117.010) Excess (deficiency) of revenues over expenditures and other financing uses (58.453) (55.009) (113,462) FUND BALANCES. JULY 1, 1987 185.527 53.809 239.336 FUND BALANCES, SEPTEMBER 30, 1988 $127.074 $ (1.200) $125.874 - 73 - CITY OF COLLEGE STATION. TEXAS COMMUNITY DEVELOPMENT FUND STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET (GAAP BASIS) AND ACTUAL FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30, 1988 Variance Favorable Budget Actual (Unfavorable) REVENUES: Grants $1,771,779 $451.987 $(1,319,792) Interest Other 120.429 120.429 Total revenues 1.771.779 572,416 (1.199.363) EXPENDITURES: Current: Reimbursed administrative expenditures 307,122 251,027 56,095 Housing rehabilitation 1.432,304 332,770 1,099.534 Other 29,781 44.500 (14,719) Capital outlay 2.572 2.572, Total expenditures 1.771.779 630,869 1.140.910 Excess (deficiency) of revenues over expenditures (58,453) (58.453) FUND BALANCE. JULY 1, 1987 185,527 185.527 FUND BALANCE, SEPTEMBER 30, 1988 $ 185.527 $127.074 $ (58.453) - 74 - CITY OF COLLEGE STATION, TEXAS HOTEL/MOTEL TAX FUND STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET (GAAP BASIS) AND ACTUAL FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30. 1988 Variance Favorable Budget Actual (Unfavorable) REVENUES: Taxes $736,500 $735,927 $ (573) Grants Interest 10,000 5.552 (4.448) Other 52.000 56.276 4.276 Total revenues 798.500 797.755 (745) EXPENDITURES: Current: Reimbursed administrative expenditures 180,247 180,247 Other 555.043 555.507 (464) Total expenditures 735.290 735.754 (464) Deficiency of revenues over expenditures 63,210 62.001 (1.209) OTHER FINANCING USES - Operating transfers out (117.010) (117.010) Deficiency of revenues over expenditures and other financing uses (53.800) (55.009) (1,209) FUND BALANCE. JULY 1. 1987 53.809 53.809 FUND BALANCE. SEPTEMBER 30. 1988 $ 9 $(1.200) $(1.209) - 75 - (This page intentionally left blank.) - 76 - CAPITAL PROJECT FUNDS 1982 Bond Funds - to account for the cost of street improvements, building purchase and construction, park improvements, and acquisition of park land to be made with funds provided by proceeds of the 1982 Series of general obligation bonds. 1982 Series II Bond Funds - to account for the cost of parks and street improvements, city hall and warehouse construction, and a traffic signalization project to be made with funds provided by proceeds of the 1982 Series II issue of general obligation bonds. 1984 Bond Funds - to account for the cost of street improvements, building construction, and park improvements to be made with funds provided by proceeds of the 1984 Series of general obligation bonds. - 77 - CITY OF COLLEGE STATION, TEXAS ALL CAPITAL PROJECT FUNDS COMBINING BALANCE SHEET SEPTEMBER 30, 1988 1982 1982 II 1984 ASSETS Bond Bond Bond Total Cash on hand and in bank $ 60.339 $ 107.035 $ 122.269 $ 289,643 Investments 50,000 2,675.000 2.600.000 5.325,000 Receivables: Accrued interest 106 4,620 3,787 8,513 Due from other funds 1 47 48 TOTAL ASSETS $110,445 $2,786,656 $2.726.103 $5,623.204 LIABILITIES AND FUND EQUITY, LIABILITIES: Accounts payable $ 658 $ 15 $ 710 $ 1.383 Retainage payable 5600 4.649 1.916 12.165 Total liabilities 6.258 4.664 2.626 13.548 FUND EQUITY: Reserved for encumbrances 12,506 246,618 259.124 Unreserved - designated for: Parks projects 107 716.194 716,301 Street projects 880.066 1,218,639 2.098,705 General government 497,259 475,990 973.249 Drainage projects 503.742 503.742 Unreserved - undesignated 104.080 675.967 278.488 1.058.535 Total fund equity 104.187 2.781.992 2.723.477 5.609.656 TOTAL LIABILITIES AND FUND EQUITY $110.445 $2.786.656 $2,726.103 $5.623.204 - 78 - CITY OF COLLEGE STATION. TEXAS ALL CAPITAL PROJECT FUNDS COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30. 1988 1982 1982II 1984 Bond Bond Bond Total REVENUES: Interest $ 16,077 $ 219.403 $227,264 $462.744 Other 110 110 Total revenues 16.077 219.403 227.374 462.854 EXPENDITURES: Current: Reimbursed administrative expenditures 24.238 37,484 25.834 87.556 Capital outlay 216,288 104.188 558.138 878,614 Other 27.849 15.211 43.060 Total expenditures 240.526 169.521 599.183 1.009.230 Excess (deficiency) of revenues over expenditures (224.449) 49.882 (371.809) (546.376) OTHER FINANCING SOURCES (USES) - Operating transfers in (out) Excess (deficiency) of revenues over expenditures and other financing sources (uses) (224,449) 49.882 (374.809) (546.376) FUND BALANCES. JULY 1. 1987 328.636 2.732.110 3.095.286 6.156.032 FUND BALANCES. SEPTEMBER 30. 1988 $104.187 $2.781.992 $2.723.477 $5.609.656 - 79 - (This page intentionally left blank.) • - 80 - ENTERPRISE FUNDS Utility Fund - to account for revenues and expenses related to the operation and maintenance of the water, sewer and electric systems of the City. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, maintenance, financing and related debt service, and billing and collection. Sanitation Fund - to account for all sanitation collection and disposal activities by the City to both residential and commercial residents, including the operation of the City's sanitary landfill. - 81 - CITY OF COLLEGE STATION. TEXAS ALL ENTERPRISE FUNDS COMBINING BALANCE SHEET SEPTEMBER 30, 1988 Utility Sanitation ASSETS Fund Fund Total C,,;;RENT ASSETS: Cash on hand and in bank $ 1,088.015 $ 43,832 $ 1,131.847 Investments 5,500.000 5.500.000 Receivable: Acr.ounts 5,484,013 150.666 5,634,679 Less allowance for uncollectable accounts (417,122) (1.970) (419,091) Accrued Interest 780 780 Other 76.348 13.018 89.366 Due from other funds 19,818 226.524 246.342 Inventories 1,260.716 7,257 1,267.973 Prepaid costs 55.749 17.656 73.404 Total current assests 13.068.317 456.983 13.525.300 RESTRICTED ASSETS: Cash in banks 2,359.337 2.359.337 Investments 10,550,000 10.550.000 Accrued interest receivable 18.408 18.412 Total restricted assets 12.927.749 12.927.749 PROPERTY AND EQUIPMENT: 65,670,535 1,882,265 67.552,800 Less accumulated depreciation (12.284.814) (1.241.657) (13,526.,471) Property, net 53.385.721 640.608 54.026.329 DEFERRED CHARGES 312.844 312.844 TOTAL ASSETS $79.694.631 $1.097.591 $80.792.222 - 82 - Utility Sanitation LIABILITIES AND FUND EQUITY Fund Fund Total CURRENT LIABILITIES: Accounts payable $ 2,154,585 $ 2,154,585 Accrued liabilities 193.766 $ 39,319 233,085 Obligation under capital lease - current 318.488 318,488 Due to other funds 1.976.176 67.359 2.043.535 Total current liabilities 4.643.015 106.678 4.749.693 PAYABLE FROM RESTRICTED ASSETS: Construction contracts and retainages payable 99,244 99,244 Accrued interest payable 382.710 382.710 Revenue bonds - current 2.545.000 2.545,000 General obligation - current 378.679 378.679 Certificates of obligation - current 26,247 26.247 Customers' meter deposits 1.950.477 1.950.477 Total liabilities payable from restricted assets 5.382.357 5.382,357 LONG-TERM DEBT: Revenue bonds 24,285,000 24.285.000 General obligation bonds 3.290,547 3,290.547 Certificates of obligation 262.001 262.001 Obligation under capital lease 3.418.191 3.418.191 Total long-term debt 31.255.739 31.255.739 ACCRUED VACATION LEAVE 78.445 21.033 99.478 DEFERRED REVENUES 3.810 3.810 TOTAL LIABILITIES 41.363.366 127.711 41.491.077 FUND EQUITY: Contributed capital 10,209,448 54.901 10.264,349 Retained earnings: Reserved for debt service 2,642,764 2.642,764 Unreserved 25.479.053 914.980 26,394.033 TOTAL FUND EQUITY 38.331.265 969.881 39.301.146 TOTAL LIABILITIES AND FUND EQUITY $79.694.631 $1,097.591 $80.792.222 - 83 - CITY OF COLLEGE STATION. TEXAS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND EQUITY - ALL ENTERPRISE FUNDS FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30, 1988 Utility Sanitation Fund Fund Total OPERATING REVENUES: Electric $37,214,725 $37,214,725 Water 5.098,674 5,098.674 Sewer 3.418.472 3,418.472 Sanitation $1,840.022 1,840.022 Other 566.469 566.469 Total operating revenues 46.298.340 1.840.022 48.138.362 OPERATING EXPENSES: Purchased power 22,561,871 22,561,871 Salaries and benefits 2,914.272 1,018.172 3.932.444 Supplies 328.838 82.106 410.944 Building maintenance 17,686 2,976 20,662 Equipment maintenance 411,992 104,036 516.028 Services 2,162,107 115,898 2,278,005 Other 396.391 53.838 450,229 Administrative expenses from general fund 3,003,436 502,892 3,506.328 Depreciation: Electrical system 715,984 715,984 Water system 837.501 837.501 Sewer system 550,553 550,553 Sanitation system 132,145 132,145 Other 2.800 2.800 Total operating expenses 33.903.431 2.012.063 35.915.494 NET OPERATING INCOME (LOSS) 12.394.910 (172.041) 12.222,868 NONOPERATING REVENUES (EXPENSES) Interest earnings 1.582,557 11.892 1.594,449 Interest expense (3.726,592) (3.726.592) Other, net 86.960 (10.200) 76.760 Total nonoperating revenues (expenses) (2.057.075) 1.692 (2.055.383) Income (loss) before operating transfers 10,337.835 (170.349) 10.167.485 Operating transfer to general fund (5.454.353) (5.454.353) NET INCOME (LOSS) 4.883,482 (170,349) 4,713.132 TOTAL FUND EQUITY, JULY 1, 1987 33.447.783 1.140.230 34.588.013 TOTAL FUND EQUITY.) SEPTEMBER 30, 1988 $38.331.265 $ 969.881 $39.301.145 - 84 - CITY OF COLLEGE STATION. TEXAS COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION - ALL ENTERPRISE FUNDS FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30, 1988 Utility Sanitation Fund Fund Total SOURCES OF WORKING CAPITAL: Operations: Net income (loss) $4,883,481 ($170,349) $4,713,132 Items not requiring working capital : Depreciation 2,106,840 132.145 2,238,985 Amortization of deferred charges 54,690 54,690 Loss on sale of assets 11.934 11.934 Working capital provided by operations 7,056,945 (38.204) 7.018,741 Decrease in restricted assets 3.100,176 3.100.776 Proceeds from refunding bonds 181,743 181,743 Increase in accrued vacation leave 2.268 2.268 Total sources of working capital 10.339.464 (35,936) 10.303,528 USES OF WORKING CAPITAL: Additions of property and equipment 4,244.874 279.366 4,524.240 Principal payments: Revenue bonds 2,605.000 2,605.000 General obligation bonds 369,631 369,631 Certificates of obligation 83.012 83.012 Capital lease 361.627 361,627 Decrease in Certificate of Obligation payable due to refunding 56,813 56,813 Decrease in payable from restricted assets 810,622 810,622 Decrease in deferred revenues 76,075 76,075 Decrease in accrued vaction leave 4,547 4.547 Other, net 2.569 2.569 Total uses of working capital 8.614.770 279.366 8.894.136 INCREASE (DECREASE) IN WORKING CAPITAL $ 1.724.694 ($315.302) $1.409.392 INCREASE (DECREASE) IN WORKING CAPITAL: Cash on hand and in bank $ 221,358 $ 32.698 $ 254.056 Investments 454.000 (350,000) 104.000 Receivables 1,671,413 25,424 1,696.837 Due from other funds (100,554) 1,987 (98.567) Inventories 22,477 (4,564) 17,913 Prepaid costs (26,553) 6.057 (20,496) Accounts payable (452,718) (11.816) (440.902) Accrued liabilities (50.096) (34,177) (84,273) Due to other funds 41.576 (4.545) 37,031 Obligations under capital lease - current (32.302) (32.302) Deferred Revenues (23.905) (23.905) (INCREASE) DECREASE IN WORKING CAPITAL $ 1.724.696 $(315.304) $1.409.392 - 85 - CITY OF COLLEGE STATION. TEXAS UTILITY FUND SCHEDULE OF REVENUES - BUDGET AND ACTUAL (NON-GAAP BASIS) FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30, 1988 Variance Favorable Budget Actual (Unfavorable) OPERATING REVENUES: Electric: Electric services $ 36.627.000 $ 36.824.687 $ 197.687 Underground construction 8,000 31,654 23,654 Pole rental 18.500 18.381 (119) temporary service 9.750 9.268 (482) Sales tax collection fees 7,500 6,607 (893) Security lights 2.500 2.136 (364) Total electric 36,673.250 36.892.733 219.483 Water: Water services 4.500.000 4,908,865 408,865 Water taps 62.000 56.600 (5.400) Total water 4.562.000 4.965.465 403.465 Sewer: Sewer services 3.355.000 3,344.057 (10,943) Sewer taps 30.000 32.000 2.000 Total sewer 3.385.000 3.376.057 (8.943) Nondepartmental : Penalties 425,000 419,050 (5.950) Reconnect fees 35,000 31,945 (3.055) Service fees 85.000 115.473 30.473 Total nondepartmental 545.000 566.468 21.468 Total operating revenues 45.165.250 45.800.723 635.473 NONOPERATING REVENUES: Other 55,000 108,926 53,926 Interest earnings 220.000 1.594.880 1.374.880 Total nonoperating revenues 275.000 1.703.806 1.428.806 TOTAL REVENUES $ 45.440.250 $ 47.504.529 $2,064,279 See reconciliation to GAAP basis on page 93. - 86 - CITY OF COLLEGE STATION. TEXAS UTILITY FUND SCHEDULE OF EXPENSES - BUDGET AND ACTUAL (NON-GAAP BASIS) FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30. 1988 Variance Favorable Budget Actual (Unfavorable) ELECTRICAL TRANSMISSION: Supplies $ 1.125 $ 953 $ 172 Building maintenance 21,200 21,152 48 Equipment maintenance 1,600 773 827 Purchased Power 22,561,871 22,561,871 Services 24,617 24,617 Sundry 127.594 127.593 1 Total operating - electrical transmission 22,738,007 22.736.959 1,048 Capital outlay 7.210 7.209 1 Total electrical transmission 22.745.217 22.744.168 1.049 ELECTRICAL DISTRIBUTION: Salaries and benefits 1.225,762 1.131,489 94.273 Supplies 148,009 142,089 5,920 Building maintenance 141,250 127,047 14,203 Equipment maintenance 41,064 40,968 96 Services 425,202 357,744 67,458 Sundry 30.731 29.526 1.205 Total operating - electrical distribution 2,012.018 1,828.863 183,155 Capital outlay 260.371 192.372 67.999 Total electrical distribution 2.272.389 2.021.235 251.154 WATER PRODUCTION: Salaries and benefits 246,189 233,363 12,826 Supplies 41.237 39,964 1,273 Building maintenance 138.993 8.655 130,338 Equipment maintenance 40.420 40,420 Services 1,234,511 1.235,345 (834) Sundry 23.098 22.560 538 Total operating - water production 1.724.448 1.580.307 144,141 Capital outlay 4.890 4.514 376 Total water production 1.729.338 1.584.821 144.517 WATER DISTRIBUTION: Salaries and benefits 433,583 377,169 56.414 Supplies 62,864 55,997 6,867 Building maintenance 83,875 57,100 26.775 Equipment maintenance 31,325 23.568 7.757 Services 364.376 353.264 11,112 Sundry 12.408 11.695 713 Total operating - water distribution 988.431 878,793 109,638 Capital outlay 118.442 118.496 (54) Total water distribution 1.106.873 997.289 109.584 (Continued) - 87 - CITY OF COLLEGE STATION. TEXAS UTILITY FUND SCHEDULE OF EXPENSES - BUDGET AND ACTUAL (NON-GAAP BASIS) (Continued) FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30. 1988 Variance Favorable Budget Actual (Unfavorable) SEWER TREATMENT: Salaries and benefits $507,195 $459.199 $47,996 Supplies 64.220 64.428 (208) Building maintenance 66.250 54.985 11,265 Equipment maintenance 12.657 10.733 1.924 Services 545,919 540.236 5,683 Sundry 39.803 27.683 12.120 Total operating - sewer treatment 1.236.044 1.157,264 78,780 Capital outlay 21.850 12.235 9.615 Total sewer treatment 1.257.894 1.169.499 88.395 SEWER COLLECTION: Salaries and benefits 362,189 350.853 11.336 Supplies 27,982 19.640 8,342 Building maintenance 43.990 34,745 9,245 Equipment maintenance 15,650 16,179 (529) Services 55,247 55.246 1 Sundry 12.058 9.491 2.567 Total operating - sewer collection 517,116 486.154 30,962 Capital outlay 22.475 22.210 2.65 Total sewer collection 539.591 508.364 31.227 WATER AND SEWER ADMINISTRATION: Salaries and benefits 238,524 231.255 7,269 Supplies 3,729 2.971 758 Equipment maintenance 3,601 1.944 1.657 Services 18,347 12.213 6,134 Sundry 2.778 2.925 (147) Total operating - water and sewer administration 266,979 251,308 15,671 Capital Outlay 4.030 4.011 19 Total water and sewer administration 271.009 255.319 15.690 • - 88 - CITY OF COLLEGE STATION. TEXAS UTILITY FUND SCHEDULE OF EXPENSES - BUDGET AND ACTUAL (NON-GAAP BASIS) (Continued) FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30. 1988 Variance Favorable Budget Actual (Unfavorable) UTILITIES ADMINISTRATION: Salaries and benefits $153,972 $140,545 $13.427 Supplies 2.236 3.191 (955) Equipment maintenance 1.647 788 859 Services 173,957 173,957 Sundry 10.782 11.778 (996) Total operating - utilities administration 342,594 330.259 12,335 Capital outlay 6.390 3.047 3.343 Total utilities administration 348.984 333.306 15.678 NONDEPARTMENTAL: Administration transfers to general fund 3,530.232 3,530,232 Energy projects 35.996 29,298 6,698 Sundry 7,031 14.542 (1,904) Total operating - nondepartmental 3,573.259 3,568.465 (4,794) Transfer to debt service fund 802,405 802.405 Revenue bond principal 2.605,000 2.605.000 Revenue bond interest 3.645,561 3.645.561 Transfer to general fund in lieu of taxes 5,454,353 5.454,353 Contingency 55.718 55.718 Total nondepartmental 16.136.296 16.081.391 60.512 TOTAL EXPENSES $46.407.591 $45.695.394 $ 712.197 See reconciliation to GAAP basis on page 93. - 89 - CITY OF COLLEGE STATION. TEXAS SANITATION FUND SCHEDULE OF REVENUES - BUDGET AND ACTUAL (NON-GAAP BASIS) FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30, 1988 Variance Favorable Budget Actual (Unfavorable) OPERATING REVENUES: Commercial collection $ 434.000 $1,556.182 $1.122.182 Residential collection 1,105.000 (1.105.000) Drainage 125.000 135.640 10,640 Landfill 125.000 123.411 (1.589) Dumpster sales 1.419 1.419 Total operating revenues 1.789.000 1.816.652 27.652 NONOPERATING REVENUES: Interest earnings 19.000 11,892 (7.108) Miscellaneous 136 136 Total nonoperating revenues 19.000 12.028 (6.972) TOTAL REVENUES $ 1.808.000 $1,828.68O $ 20.680 See reconciliation to GAAP basis on page 93. - 90 - CITY OF COLLEGE STATION. TEXAS SANITATION FUND SCHEDULE OF EXPENSES - BUDGET AND ACTUAL (NON-GAAP BASIS) FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30. 1988 Variance Favorable Budget Actual (Unfavorable) SANITATION COLLECTION (RESIDENTIAL): Salaries and benefits $ 672,170 $ 619.410 $ 52.760 Supplies 36,880 29.619 7.261 Equipment maintenance 48,103 46.791 1.312 Services 15.986 16,983 (997) Sundry 29.109 29.108 1 Total operating - sanitation collection (residential ) 802,248 741.911 60,337 Capital outlay 13.438 12.369 1.069 Total sanitation collection (residential ) 815.686 754.280 61.406 SANITATION COLLECTION (COMMERCIAL): Salaries and benefits 173,641 164,613 9,028 Supplies 13,175 11.639 1.536 Equipment maintenance 17.625 16.868 757 Sundry 8.381 8.380 1 Total operating - sanitation collection (commercial ) 212.822 201.500 11.322 SANITATION DISPOSAL: Salaries and benefits 136.438 136.416 22 Supplies 38,084 38,083 1 Building and grounds maintenance 3.075 2.976 99 Equipment maintenance 34,538 34.525 13 Services 181,245 180,216 1.029 Sundry 10.423 10.423 0 Total operating - sanitation disposal 403,803 402,639 1,164 Capital outlay 258.606 258.217 389 Total sanitation disposal 662.409 660.856 1.553 DRAINAGE DEPARTMENT: Salaries and benefits 108,700 95,465 13,235 Supplies 4.064 2.764 1.300 Equipment maintenance 8,750 5.852 2.898 Sundry 5.260 4.450 810 Total operating - drainage department 126.774 108,531 18.243 Capital outlay 9.005 8.781 224 Total drainage department 135.779 117.312 18.467 (Continued) - 91 - CITY OF COLLEGE STATION. TEXAS SANITATION FUND SCHEDULE OF EXPENSES - BUDGET AND ACTUAL (NON-GAAP BASIS) (Continued) FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30. 1988 Variance Favorable Budget Actual (Unfavorable) NONDEPARTMENTAL: Contingency $ 8,688 $ 8.688 Transfer to general fund 502,892 $ 502,892 Contribution to Brazos Beautiful 10,000 10.000 Sundry 2.500 417 2.083 Total nondepartmental 524.080 513.309 10.771 TOTAL $ 2.350.776 $2.247.257 $103.519 See reconciliation to GAAP basis on page 93. - 92 - CITY OF COLLEGE STATION. TEXAS UTILITY FUND AND SANITATION FUND SCHEDULE FOR RECONCILIATION OF REVENUES AND EXPENSES (NON-GAAP BASIS) TO GAAP BASIS STATEMENT OF INCOME FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30. 1988 Utility Sanitation Fund Fund Total revenues per budget - Actual $47,504,529 $1,828,680 Less total expenses per budget - Actual 45.695.394 2.247.257 NET GAIN (LOSS). BUDGET BASIS 1.809.135 (418,577) ADD - Expenditures related to balance sheet: Prior year interest accrual 1.031.062 Principal payment-debt service 3.057.643 Capital outlay 254,719 279,367 Capital lease payments 361,628 Year end encumbrances 146,951 81,301 Accrued vacation leave 4.547 Other 64,425 ADD - Unbudgeted revenue adjustments: Current year revenue accrual 2,457.921 92.460 Other 161.341 DEDUCT - Unbudgeted expenses/revenue adjustments: Depreciation (2,106.838) (132,145) Prior year revenue accrual (1.960,304) (69,089) Current year interest accrual (382,710) Allowance for uncollectible accounts (186.388) (1,060) Accrued vacation leave (2,269) Other (337) NET INCOME (LOSS), GAAP BASIS $4.713.132 $(170.349) - 93 - (This page intentionally left blank.) - 94 - INTERNAL SERVICE FUNDS Employee Benefits - to account for self-insurance activity relating to administration of the City's health benefits plan. Workers' Compensation - to account for self-insurance activity relating to administration of the City's workers' compensation plan. • - 95 - CITY OF COLLEGE STATION. TEXAS ALL INTERNAL SERVICE FUNDS COMBINING BALANCE SHEET SEPTEMBER 30. 1988 Employee Workers' ASSETS Benefits Compensation Total Cash on hand and in bank $ 51.151 $ 11.915 $ 63.066 Investments 150,000 100,000 250.000 Due from other funds 147,838 73,238 221,076 Prepaid costs 4.500 27.000 31,500 Accrued Interest 147 78 225 Miscellaneous accounts receivable 117.821 117.821 TOTAL ASSETS $471.457 $212.231 $683.688 LIABILITIES AND FUND EQUITY LIABILITIES: Accrued liabilities 110.838 113.210 224.048 Total liabilities 110,838 113.210 224.048 FUND EQUITY - Unreserved retained earnings 360.619 99.021 459.640 TOTAL LIABILITIES AND FUND EQUITY $471.457 $212.231 $683.688 - 96 - CITY OF COLLEGE STATION. TEXAS COMBINING STATEMENT OF REVENUES. EXPENSES AND CHANGES IN FUND EQUITY - ALL INTERNAL SERVICE FUNDS FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30. 1988 Employee Workers' Benefits Compensation Total OPERATING REVENUES $1.035.994 $ 313.864 $1.349.858 OPERATING EXPENSES: Claims 711.198 288.610 1,099.808 Administration fee 48,769 22.502 71,271 Premiums 98,458 23,264 121,723 Other 366.586 6.584 273.170 Total operating expenses 1.225.012 340.960 1.565.972 NET OPERATING INCOME (LOSS) (189,018) (27,096) (216,114) NONOPERATING REVENUES - Interest earnings 9.950 8.299 18.249 NET LOSS (179.068) (18.797) (197,865) TOTAL FUND EQUITY. JULY 1. 1987 539.687 117.818 657.505 TOTAL FUND EQUITY. SEPTEMBER 30, 1988 $ 360.619 $ 99.021 $ 459.640 - 97 - CITY OF COLLEGE STATION. TEXAS COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION - ALL INTERNAL SERVICE FUNDS FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30, 1988 Employee Workers° Benefits Compensation Total DECREASE IN WORKING CAPITAL - Net loss $(179.068) $ (18.797) $(197.865) INCREASE (DECREASE) IN WORKING CAPITAL: Cash on hand and in bank 33.918 (65.639) (31.721) Investments 150.000 100.000 250.000 Due from other funds (409,565) 31,568 (377.997) Prepaid costs 1,000 16.565 17,565 Accrued interest 147 76 223 Account receivable miscellaneous 117,821 117,821 Accrued liabilities (72.387) (101.369) (173.756) DECREASE IN WORKING CAPITAL $(179.066) $ (18,799) $ 7,8(19 65) - 98 - GENERAL FIXED ASSETS ACCOUNT GROUP To account for fixed assets not used in proprietary fund operations or accounted for in trust funds. - 99 - (This page intentionally left blank.) • - 100 - CITY OF COLLEGE STATION. TEXAS GENERAL FIXED ASSETS ACCOUNT GROUP SCHEDULE OF GENERAL FIXED ASSETS - BY SOURCES SEPTEMBER 30. 1988 GENERAL FIXED ASSETS: Land $ 4.448.312 Buildings and improvements 10,820,271 Machinery. tools and equipment 6,288,843 Motor vehicles 1,530,647 Parks and recreation equipment 5,410,153 Paving sidewalks and streets 11,518,300 Construction in progress 95.739 TOTAL GENERAL FIXED ASSETS $4O.112,265 INVESTMENT IN GENERAL FIXED ASSETS FROM: Capital projects funds: General obligation bonds $23,327,148 Certificates of obligation 1,732.352 General fund revenues 5.326,953 Expendable trust fund revenues 14,364 Special revenue fund revenues: Federal grants 1,644,492 Other 1,066,821 Acquisitions prior to July 1. 1979 - Source undetermined 7.000.135 TOTAL INVESTMENT IN GENERAL FIXED ASSETS $4O.112.265 - 101 - CITY OF COLLEGE STATION. TEXAS GENERAL FIXED ASSET ACCOUNT GROUP SCHEDULE OF GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY SEPTEMBER 30, 1988 Building and Total Land Improvements GENERAL FUND: Administration $ 514.863 $ 57,197 Finance 325.491 10.654 Public service 1.225.944 28.168 Police 627,512 1,972 Fire 699,130 1,649 Engineering 294,486 9.374 Parks 754,846 118.634 Computer project I 556.151 Computer project II 342.894 Total general fund 5.341.317 227.648 SPECIAL REVENUE FUNDS: Federal grants 1,644.492 $ 13.082 221,859 Others 1.066.821 150.009 894.294 Total special revenue fund 2.711.313 163.091 1.116.153 CAPITAL PROJECTS FUNDS: Certificate of obligation funds 1,732,352 637,168 400.000 Southwest Parkway 642.231 1971 bond funds 172.838 1976 bond funds 126,377 1,495 1978 bond funds 533,706 25.141 1978 II bond funds 2,803,997 485.325 579.005 1981 bond funds 1.904,043 224,979 1,114.176 1982 bond funds 3.899.456 376.857 1,237.290 1982 II bond funds 5,430,411 594.247 461.605 1984 bond funds 7.718.350 510.040 3.705.901 Total capital project funds 24.963.761 2.828.616 7.524.613 Acquisitions prior to July 1. 1979 - Source undetermined 7.000.135 1.456.605 1.951.857 Total general fixed assets allocated to functions 40.016,526 $4.448.312 $1O.82O.271 Construction in progress 95.739 TOTAL GENERAL FIXED ASSETS $4O.112.265 - 102 - Machinery. Parks and Paving Tools and Motor Recreation Sidewalks Eauioment Vehicles Eauioment and Street $ 311.073 $ 146,593 236,554 78,283 735,115 462.661 366.074 259.466 446.966 250.515 151.160 133,588 $ 364 266.235 190,546 $ 179.431 556,151 342.894 3.412.222 1.521.652 179.431 364 2,044 8,995 67,220 1,331.292 3.248 19.270 5.292 8.995 67.220 1.350.562 695,184 642.231 172.838 13,249 111.633 162,399 346,166 13,967 1.070,353 655.347 930 22.568 541.390 284,443 419,975 1,580,891 561.730 2.428,203 1.384,626 699.019 234.546 2.568.844 2.255.273 4,351.293 8.003.966 616.056 812.209 2.163.408 $6.288.843 $1.530.647 $5.410.153 $11.518.300 - 103 - CITY OF COLLEGE STATION. TEXAS GENERAL FUND FIXED ASSET GROUP SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30. 1988 General General Fixed Fixed Function and Assets Assets Activity 7/1/87 Additions Retirements Transfers 9/30/88 GENERAL FUND: Administration $ 387.610 $ 77,852 $ (21,832) t 71,233 E 514.863 Finance 319,802 43,024 (22,600) (14,735) 325,491 Public service 1.209,399 20.344 (25.262) 21.463 1,225.944 Police 639,756 220,290 (141.916) (90.618) 627.512 Fire 670,362 28.768 699.130 Engineering 313,342 8,705 (8.650) (18.911) 294.486 Parks 540,771 214,129 (31.622) 31.568 754,846 Computer project I 559,751 (3,600) 556,151 Computer project II 342.894 342.894 Total general fund 4.640.793 956.006 (255.482) 5.341.317 SPECIAL REVENUE FUNDS: Federal grants 1,523,373 121,119 1.644,492 Other: Community Center 894,294 894,294 Other 172.527 172.527 Total special revenue funds 2,590.194 121.119 2.711.313 CAPITAL PROJECT FUNDS: Certificate of obligation funds 1,732,352 1,732,352 Southwest Parkway 642,231 642,231 1971 bond funds 172,838 172,838 1976 bond funds 126,377 126,377 1978 bond funds 533,706 533.706 1978 II bond funds 2,803.997 2.803.997 1981 bond funds 1.904,043 1.904.043 1982 bond funds 3,682,481 216.975 3.899.456 1982 II bond funds 5.333,767 96,644 5.430,411 1984 bond funds 5.148.287 2.570.063 7.718.350 Total capital project funds 22.080.079 2.883.682 24.963.761 (Continued) - 104 - CITY OF COLLEGE STATION, TEXAS GENERAL FUND FIXED ASSET GROUP SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY (Continued) FOR THE FIFTEEN MONTHS ENDED SEPTEMBER 30. 1988 General General Fixed Fixed Function and Assets Assets Activity 7/1/87 Additions Retirements Transfers 9/30/88 Acquisitions prior to July 1. 1979 - Source undetermined $ 7.005.234 $ (5.099) $ 7.000.135 Construction in progress 2.133.710 $1.309.674 $(3,347.645) 95.739 TOTAL GENERAL FIXED ASSETS $38.45O,O1O $4.536.250 $(26O.581) $(3.347.645) $40.112,265 - 105 - (This page intentionally left blank.) - 106 - STATISTICAL SECTION - 107 - CITY OF COLLEGE STATION. TEXAS GENERAL GOVERNMENTAL EXPENDITURES AND OTHER USES BY FUNCTION (1) LAST TEN FISCAL YEARS Fiscal General Public Year Government Police Fire Service 1979 $ 883,323 $ 524.288 $ 425.628 $ 453.224 1980 1.039.570 859,629 661.767 474,553 1981 1.319.826 1.090,295 967.410 509.671 1982 2,132.476 1,491.374 1,350.053 714.819 1983 3.592,677 1.922,117 1.691.084 819.417 1984 3.200,862 2.089,176 1,842.618 966.407 1985 3.559.610 2,445,386 2.008.648 1.142,137 1986 3.948,780 2.711,271 2.224.796 1.240,623 1987 4.214.064 3,024,395 2.324.273 1.190,695 1988 (2) 4,968.662 3.883,961 2.943.886 1.561,876 (1) Expenditures presented include the General and Debt Service Funds. (2) Fiscal year 1988 represents the transition from a June 30th year-end to September 30th. Fiscal Year 1988 shows the 15 months 7/1/87 - 9/30/88. Source: City of College Station - 108 - Reimbursed Parks & Capital Debt Administrative Recreation Outlay Service Expenditures Total $ 330.429 $228.328 $ 539.183 $ (975,266) $ 2,409.137 426.377 262,203 1,567,169 (628,795) 4.662.473 591,194 466,892 1.322.307 (849.678) 5,417,917 733.073 498,411 1,571.830 (1,277.255) 7.214,781 979.019 549,230 2,417.748 (1.532.333) 10,438.959 1.159,758 762,368 3.493.647 (2.391.871) 11,122,965 1,405,236 651.878 3,499,615 (2,779,161) 11,933,349 1,572,606 606.156 3.807.583 (2.832.153) 13,279,662 1,583.837 399,930 3.705,802 (3.353,671) 13,089.325 2,401,189 1,068,070 3,813,384 (3,818,632) 16,822,396 - 109 - CITY OF COLLEGE STATION. TEXAS GENERAL REVENUES AND OTHER FINANCING SOURCES(1) LAST TEN FISCAL YEARS Certificates. Fiscal Property Franchise & Sales & Mixed Licenses & Fines & Year Tax Franchise Tax Drink Tax Permits Service Fees 1979 $438,268 $1O3,752 $951,726 $59.022 $288,3O6 1980 444,342 115,810 1.104.141 80,599 320.881 1981 513,114 135.823 1.696.132 219,785 406,636 1982 606,989 177.753 1,874,722 299,577 418,371 1983 589.814 228,951 2,654.600 226.466 492.985 1984 25,696 299.269 2.743.848 193.065 350,244 1985 8.408 267,991 3,104,118 220,378 442,921 1986 208,481 315.272 3.066,168 114.971 459,872 1987 222,826 299,973 3,016,640 102.739 442,408 1988(4) 967.253(5) 340.310 4,257,621 139,412 478,114 (1) Revenue presented includes the General Fund and Debt Service Funds. (2) Contribution from Enterprise Funds represents transfers in lieu of taxes. (3) Revenue sharing transfers made fiscal 1980 through fiscal 1987. (4) Fiscal Year 1988 represents the transition from a June 30th year-end to September 30th. Fiscal Year 1988 shows the 15 months 7/1/87 - 9/30/88. (5) Property tax allocated to the General Fund increased from two cents per $1OO valuation in 1987 to nine cents in 1988, with a corresponding decrease in debt service from thirty-six to twenty-nine cents. SOURCE: City of College Station • - 110 - Other Debt Service Services From Enterprise Financing Property Provided Funds (2) Miscellaneous Sources Tax Total $ 345,983 $ 91.738 $ 55.394 $ 506,103 $ 2.840.292 103.883 $1.O05.571 142,396 287.690(3) 1.843.443 5,448.756 136.719 1.328.425 203,804 360.089(3) 1,369,367 6.269.894 177,930 1,647,247 431,233 313,893(3) 1,614.989 7,562,704 227,962 2.097.225 564.636 517.768(3) 1,724,363 9.324.770 269,094 2,774,940 354,924 337,370(3) 2,678,842 10,027,292 286,010 3.272.759 453,871 625.825(3) 3,514,761 12,197,042 335.371 4,066.951 407,287 706.772(3) 3,826,083 13,507,228 298,463 4,302,654 414.908 657.086(3) 3.992,810 13,750,507 487.541 5,570,140 577,819 61,439 3,411,171(5)16.290.820 - 111 - CITY OF COLLEGE STATION. TEXAS PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS Current Percent Delinquent Fiscal Total Tax Of Levy Tax Year Tax Levy Collections Collected Collections 1979 $ 892.181 $ 867.137 97.19% $ 15,181 1980 1,120.957 1,065,347 95.04 32.916 1981 1,178,078 1.127.500 95.71 44,166 1982 1,281,534 1,236.615 96.50 50,820 1983 2.286,192 2,178,842 95.30 42.389 1984 2.609,180 2.497,144 95.71 76,450 1985 3.446.634 3.243.918 94.12 79.880 1986 4,163,870 3,870,682 92.96 105,878 1987 4,261.855 3.956,428 92.83 192.003 1988 4,181,328 3,945,308 94.36 315,203 Source: City of College Station - 112 - Total Collections Outstanding Delinquent Total As Percent Of Outstanding Taxes As A Percent Tax Collections Current Levy Delinauent Taxes Of Current Levy $ 882.318 98,89% $ 52,502 5.88% 1.098.263 97.98 71,884 6.41 1,171,666 99.46 76,509 6.49 1.287.435 100.46 70.839 5.53 2,221,231 97.16 135,609 5.93 2,573,594 99.40 168,495 6.46 3,323,798 96.44 286,133 8.30 3,976,560 95.50 470,034 11.29 4.148.431 97.34 582,614 13.67 4,260,511 101.89 489,709 11.71 - 113 - CITY OF COLLEGE STATION. TEXAS ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTIES LAST TEN FISCAL YEARS Real Property Personal Property Fiscal Assessed Assessed Estimated Year Value Actual Value Value Actual Value 1979 $140.112,861 $175,141,076 $26,258,105 $32.822,631 1980 266,536.120 333,170,150 27,368,820 34,211,025 1981 288,809,588 361,011,985 28,255,830 35.319,787 1982 388,608.966 388,608,966 44,444,725 44.444.725 1983 701.275,219 701,275,219 67,852,521 67,852,521 1984 751,247,026 751,247,026 90.423,941 90.423.941 1985 837,335,042 837,335,042 120.063.291 120,063,291 1986 947,844,276 947.844.276 147,911.179 147,911,179 1987 973,309.236 973.309.236 148,231,526 148.231,526 1988 954,061,666 954,061,666 146.287.853 146.287.853 Source: Brazos County Appraisal District - 114 - Ratio of Total Assessed To Total Estimated Assessed Value Estimated Actual Value Actual Value $ 166.370,966 $ 207,963.707 80% 293.904,940 367,381,175 80 317,065,418 396,331,772 80 433.053,691 433,053.691 100 769,127,740 769,127.740 100 841.670,967 841.670.967 100 957.398,333 957,398.333 100 1,095.755,455 1.095.755.455 100 1,121.540,789 1.121,540,879 100 1,100,349.519 1,100,349.519 100 - 115 - CITY OF COLLEGE STATION. TEXAS PROPERTY TAX RATES, RATIOS AND LEVIES - ALL OVERLAPPING GOVERNMENTS LAST TEN FISCAL YEARS Tax Rates Fiscal (Per $100 of Assessed Value) Year(1) City School County State Total (3) 1979 $ .56 $ 1.27 $ .99 $ .10 $ 2.92 1980 .39 1.29 1.15 .10 2.93 1981 .39 1.40 .38 .10 2.27 1982 .31 1.18 .40 .10 1.99 1983 .31 .90 .27 .00 1.48 1984 .31 .97 .31 .00 1.59 1985 .36 .95 .3296 .00 1.6396 1986 .38 .9780 .3253 .00 1.6833 1987 .38 1.079 .4170 .00 1.8760 1988 .38 1.079 .4170 .00 1.8760 (1) Tax rates are established by each taxing jurisdiction on an annual basis for revenues to be collected in the following fiscal year. (2) The date that taxes are due for all jurisdictions is October 1 . Taxes for all jurisdictions become delinquent on February 1. The penalty is set by state law at 6% in February, and an additional 1% per month up to 12%. The interest is accrued at 1% per month. (3) The upper limit of the tax rate is set at $2.50/$100 of assessed value for each jurisdiction by State Statute. This limit is for both operations and debt service combined. (4) The state legislature effectively eliminated state property taxes by reducing the ratio to .0001% in fiscal 1981. Source: Brazos County Appraisal District - 116 - Tax Ratios Tax Levies County/ City School County State City School State 80% 80% 20% 20% $892,365 $3,665,701 $1,592,086 80 80 100 0(4) 1.121.035 3.631,840 2,183,122 100 100 100 0 1,176,291 4.173.218 3,653,898 100 100 100 0 1,281.560 4,707,725 4.140,834 100 100 100 0 2,286.192 7.105,257 5.879,701 100 100 100 0 2,609.180 8.706.598 9.086,144 100 100 100 0 3.446,634 9,676,001 9,206.410 100 100 100 0 4.163.870 11,757,247 9.997,174 100 100 100 0 4,261,855 12,797.106 11,515,156 100 100 100 0 4,181,328 12.959.657 12,297,807 - 117 - CITY OF COLLEGE STATION. TEXAS PAVING ASSESSMENT COLLECTIONS LAST TEN FISCAL YEARS Percentage of Current Current Total Fiscal Current Assessment Assessment Outstanding Year Assessment Collected Collected Assessments 1979 $ 7.612 1980 4.388 1981 $79.847 $44.740 56.03% 57.922 1982 394,287 348,235 88.32 385.484 1983 40,116 32,454 80.90 161.606 • 1984 49,373 65 .13 141.899 1985 96,153 1986 80,134 1987 71,743 1988 202,546 36,913 18.22 232.334 Source: City of College Station Finance Department - 118 - CITY OF COLLEGE STATION. TEXAS, COMPUTATION OF LEGAL DEBT MARGIN SEPTEMBER 30, 1988 The City has no general obligation legal debt limit other than a ceiling on the tax rate as specified by the State of Texas. The prescribed maximum is $2.50 per $100 at 100%valuation. - 119 - CITY OF COLLEGE STATION. TEXAS RATIO OF NET GENERAL BONDED DEBT TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA LAST TEN FISCAL YEARS Less Fiscal Estimated Assessed Gross Debt Service Year Pooulation(1) Value Bonded Debt Cash Funds 1978 32,348 $ 145.877.135 $ 3.046.250 $ 365,282 1979 35,260 166,370,966 5,916.000 332.203 1980 37,296 (2) 293,904.940 11,995.000(3) 772,498 1981 42.320 317,065.418 11.290,000(3) 769,558 1982 45.623 433,053,691 14,690.000(3) 812.717 1983 46.857 769.127,740 20.240.000(3) 955,945 1984 52,784 841,670,967 27.480,000(3) 1,478,640 1985 52,521 957.398.333 21,354.000 1.750,986 1986 52,581 1,095,755.455 19.907.500 2.028.845 1987 52,851 1.121.540,789 18,411,000 2,560,656 1988 52,994 1,100,349.519 20.993,888 1.890.972 (1) Source: Metropolitan Planning Organization & City of College Station Planning Department (2) Source: U.S. Government Census (3) Includes general obligation debt that is serviced by the enterprise funds. In fiscal 1985. such debt was reflected as indebtedness of the Utility Fund. - 120 - Ratio Of Net Bonded Net Bonded Net Bonded Debt Debt To Assessed Value Debt Per Capita S 2,680,968 1.84% $ 83 5,583,797 3.36 158 11,222,502 3.82 301 10.520.442 3.32 249 13,877,283 3.20 304 19.284.055 2.51 412 26,001.360 3.09 493 19.603,014 2.05 373 17,878,655 1.63 340 15,850,344 1.41 300 19,102.916 1.74 360 - 121 - CITY OF COLLEGE STATION, TEXAS SCHEDULE OF DIRECT AND ESTIMATED OVERLAPPING DEBT (1) SEPTEMBER 30. 1988 Net Debt City's Share Per* Taxing Body Amount As Of Percent Amount Capita ESTIMATED OVERLAPPING DEBT College Station I.S.D. $32,980,000(2) 8/31/88 90.98% $30,005,204 $566 Brazos County 7,645.503(3) 12/31/88 35.67 2,727.151 51 Brazos County Road & Bridge 155.000(3) 12/31/88 34.68 53.754 1 Bryan I.S.D. 11.695,675(4) 8/31/88 1.15 134.500 3 32.920.609 621 NET DIRECT DEBT City of College Station 19.102,916 9/30/88 100.00 19.102.916 360 NET DIRECT AND ESTIMATED OVERLAPPING DEBT $52.023.525 $981 *Population - 52,994 (1) Source: City of College Station Finance Department (2) Source: College Station Independent School District (3) Source: Brazos County Treasurer's Office (4) Source: Bryan Independent School District - 122 - CITY. OF COLLEGE STATION. TEXAS RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL OBLIGATION DEBT TO TOTAL GENERAL FUND EXPENDITURES LAST TEN FISCAL YEARS Interest, Total Fiscal Fiscal and Total General Fund Year Principal Other Charges Debt Service Expenditures Ratio 1979 $ 150,250 $ 298,569 $ 448.819 $ 1.869.954 24.00% 1980 884,036 683.133 1.567.169 (1) 3,095.304 50.63 1981 684.435 637,503 1.321.938 (1) 4.095.610 32.28 1982 856.343 715,120 1.571.463 (1) 5.642.951 27.85 1983 1,195.929 1.221,313 2.417.242 (1) 8.021,211 30.14 1984 1.547.007 1.944.710 3,491.717 (1) 7,629.318 45.77 1985 1.361.800 2,137.815 3.499.615 8,433.734 41 .50 1986 1,630,982 2,176,601 3,807,583 9,472.079 40.20 1987 1,685.439 2.020,363 3.705.802 9,383,523 39.49 1988 1,795.053 2.108,331 3,813.384 13,009.012(2) 29.31(2) (1) Includes general obligation debt that is serviced by the Enterprise Funds. As of July 1, 1984, such debt was reflected as indebtedness of the Utility Fund. (2) Fiscal year 1988 represents the transition from a June 30th year-end to September 30th - Fiscal year 1988 shows the 15 months 7/1/87 - 9/30/88. Source: City of College Station - 123 - CITY OF COLLEGE STATION. TEXAS SCHEDULE OF REVENUE BOND COVERAGE - UTILITY FUND LAST TEN FISCAL YEARS Operating Expenses Debt Service Requirements Fiscal Operating (excluding Net Average Annual Maximum Annual Year Revenues Depreciation) Revenues Total Coverage Total Coverage 1979 $ 8.862,537 $ 6.210,206 $ 2,652.331 $ 354,559 7.48 487.673 5.44 1980 10,324,011 6,854.767 3.469.244 933.090 3.72 990.705 3.50 1981 11,917,202 7,974.852 3.942.350 812.578 4.85 990.298 3.98 1982 16,549.721 9.456.675 7,093,046 1.492.660 4.75 2,410,048 2.94 1983 23,611.548 15,505.972 8,105.576 2,288,214 3.54 3.787,641 2.14 1984 26.277.830 16,265,010 10.012.820 4.066,427 2.46 5,688,176 1.76 1985 31,867,897 21,673.543 10,194,354 3,582,202 2.85 5,172.546 1.97 1986 32.480.725 23,958,157 8,522,568 3,476,179 2.45 5,143,007 1.66 1987 32.760.614 22.777.769 9.982.845 3,357.048 2.97 5.096.158 1.96 1988(1)48.138,363 33,676,511 14.461.852 3.134.547 4.61 4.758.370 3.04 (1) Fiscal Year 1988 represents the transition from a June 30th year-end to September 30th - Fiscal Year 1988 shows the 15 months 7/1/87 - 9/30/88. Source: City of College Station • - 124 - CITY OF COLLEGE STATION. TEXAS TOTAL BANK DEPOSITS LAST TEN FISCAL YEARS Fiscal Year Amount 1979 $ 88.045,000 1980 131.596.000 1981 143,578.000 1982 174.990,000 1983 175,848,000 1984 190.147,000 1985 200.588.000 1986 199.102,000 1987 214,443.000 1988 (1) 135.469,000 (2) (1) Effective in Fiscal Year 1988, data from September 30. Prior years are June 30 reports. (2) During fiscal year 1988. First Republic Bank A&M was purchased by North :arolina National Bank and operated as a branch of N.C.N.B. -Texas National Bank. Call reports are not issued by branch banks. SOURCE: Call Reports for all College Station Banks - 125 - CITY OF COLLEGE STATION. TEXAS CONSTRUCTION PERMITS LAST TEN CALENDAR YEARS Residential Commercial Construction Construction Total Number Number Number Year of Permits Value of Permits Value of Permits Value 1979 267 $11,606,261 252 $6,212,298 519 $17,818.559 1980 359 25.716,938 238 9,697,550 597 35,414,488 1981 603 50,667.095 417 30,114.838 1020 80,781,933 1982 663 64.567,551 543 40.177.931 1206 104,745,482 1983 424 27,272.747 500 32.116.284 924 59,389.031 1984 134 23,500,892 467 45,546.079 601 69,046,971 1985 194 9,587.839 323 15,779,281 517 25,367.120 1986 209 8,104.272 134 16.133,255 343 24,237.527 1987 250 12.655.651 225 15.590,672 475 28,256,323 1988 243 20.279,472 172 3.468.622 415 23,748.094 SOURCE: City of College Station Building Department - 126 - CITY OF COLLEGE STATION. TEXAS PRINCIPAL TAXPAYERS SEPTEMBER 30. 1988 Percent of 1987 Total Assessed Taxpayer Tvoe of Business Assessed Valuation Valuation General Telephone Company Utility $ 31.778,193 2.89% CBL Management Retail Mall 19.747.640 1.79 Westinghouse Electric Corp. Manufacturing 17.657,010 1.6 FDIC for Unitedbank - Houston Hotel 11.600,000 1.05 College Station Hotel Partners Hotel 11,445,632 1.04 Foley's Federated Department Store Retail 10.420,760 .95 San Antonio Savings Apartments 8.092,200 .74 Humana Hospital of Texas. Inc. Service 7,668,820 .70 Continental Real Estate Partners Ltd. Apartments 7.400,700 .67 Texas Instruments, Inc. Manufacturing 7.057.950 .64 $ 132.868.905 12.07% SOURCE: Brazos County Appraisal District - 127 - CITY OF COLLEGE STATION. TEXAS MISCELLANEOUS STATISTICAL AND DEMOGRAPHIC DATA SEPTEMBER 30, 1988 Date incorporated October 1938 Date first charter adopted October 1938 Date present charter adopted August 1983 Form of government Council -Manager Area in square miles Year So. Mi . 1938 1.5 1948 4.2 1958 7.3 1968 17.3 1978 22.6 1982 23.8 1986 26.7 1988 27.7 Miles of streets Paved 162.0 Miles Unpaved 2.5 Miles Miles of sidewalks 31.0 Miles Miles of sanitary sewer 192.0 Miles Fire Protection: Number of stations 2 Number of full -time employees 75 Police Protection: Number of employees (uniformed) 62 Number of employees (plain clothes, clerical ) 25 Number of patrol units 15 One jail facility with a capacity of 20 Recreation: Number of playgrounds 18 Number of basketball courts 14 Number of swimming pools 3 Number of soccer fields 14 Number of softball/baseball fields 14 Number of tennis courts 13 Number of picnic shelters 11 Number of gyms 1 (Continued) - 128 - CITY OF COLLEGE STATION. TEXAS MISCELLANEOUS STATISTICAL AND DEMOGRAPHIC DATA (Continued) SEPTEMBER 30, 1988 Parks: Facility Acres Facility Acres Anderson Park 8.94 Longmire Park 4.16 Bee Creek Park 43.50 Merry Oaks 4.60 Brentwood Park 7.69 Oaks Park 7.50 Brison Park 9.20 Parkway 1.90 Brother's Pond 16.12 Raintree 13.00 College Station Central Park 47.22 Richard Carter Park 7.40 Community Center 7.80 Sandstone 13.21 Cy Miller Park 2.50 Southwood Complex 44.65 Eastgate 1.00 Thomas Park 16.10 Emerald Forest Park 4.50 University Park Site 10.02 Fairview 1.80 Wayne Smith Park 2.00 Gabbard Park 10.67 Windwood Park 1.00 Georgia K. Fitch 11.30 Woodcreek Park Site 6.65 Lemon Tree Park 15.50 Woodway Park Site 2.00 Lick Creek Park 515.00 Lincoln Center 8.00 Lion's Park 1.50 TOTAL ACREAGE 846.43 Utility Fund: Electric users (Units Served) 19,270 Water users (Units Served) 14,911 Average electrical consumption: 28,711.667 KWH/Mo. during 1987-88 Average water consumption: 138,221 MGW/Mo. during 1987-88 Number of Employees Electric 42 Water 28 Sewer 32 Water Capacity: Number of wells 4 Combined capacity of wells 17,000,000 GAL/day Number of ground storage tanks 3. Total capacity 10,000.000 GALS Number of elevated storage tanks 2, Total capacity 3,000,000 GALS Miles of water lines 180.0 Miles Electric Capacity: Maximum capacity 120 megawatts Number of switching stations 1 Number of substations 2 Miles of distribution lines 180 (Continued) - 129 - CITY OF COLLEGE STATION. TEXAS MISCELLANEOUS STATISTICAL AND DEMOGRAPHIC DATA (Continued) SEPTEMBER 30. 1988 Sanitation Fund: Number of users (Units served) 17,818 Landfill size 118 acres Methodology Curbside pickup using plastic bags Education: Attendance centers 6 Number of classrooms 309 Number of teachers 303 Number of students 5,242 Elections: Number of Registered voters: Last general election 29.609 Last municipal election 23.721 Number of votes cast in: Last general election 18.195 Last municipal election 1,571 Percentage of registered voters voting in: Last general election 61% Last municipal election 6.6% Population: Census count 1988 52,994* 1980 37.296 1970 17.676 1960 11.396 1950 7.925 * 1988 Estimate per Metropolitan Planning Organization and City of College Station Planning Department. SOURCE: City of College Station - 130 - CITY OF COLLEGE STATION MISCELLANEOUS STATISTICAL AND DEMOGRAPHIC DATA (Continued) SEPTEMBER 30. 1988 PROJECTED TEXAS A&M UNIVERSITY ENROLLMENT BY FALL SEMESTERS UNIVERSITY YEAR PROJECTIONS 1987 39,079 (Actual ) 1988 39,163 (Actual ) 1989 39,947 1990 40.859 1991 40,455 1992 40,721 1993 41,000 1994 41,000 1995 41.000 2000 41,000 SOURCE: TAMU Planning & Institutional Analysis. February, 1989. PRIMARY LABOR FORCE FOR BRAZOS COUNTY 1980 - 1988 YEAR TOTAL LABOR FORCE PERCENT UNEMPLOYED 1980 41,390 3.5% 1981 47.301 4.2 1982 50,140 4.1 1983 54,790 4.6 1984 57.516 3.7 1985 56,504 4.8 1986 57,472 6.4 1987 59,595 6.2 1988 57.637 4.6 SOURCE: College of Business Administration Report on the Economic Assessment and Comparative Advantages of Bryan/College Station, Texas A&M University. 1984 for years 1980 - 1984. Texas Employment Commission. Bryan. 1989 for year 1985 - 1988. - 131 - (This page intentionally left blank.) - 132 -