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FY 1988-1989 -- Comprehensive Annual Financial Report City of College Station, Texas ,,,,......, ,,, ,,,,,,,..„ ,,. L I��\v t,..l ti/ _�,`. tea. SranoN `' �s — COLLEGE T°4 '., / "" 4F` =�� \ $ r /f a armli7ua an/m — 1 '�J ^�� t / t J�,� 4 luunl New MW ` la�'—� 1\ 1 1 \'/ ) � 7 \� III I gll I� �f/�5 Y �1y Z x !+"'^ 41F1(mlfl 4 .rl imq w p!�—� -s '�'�'a,� t3 y �al�l�ml�il�\� �'eum/ aro'3q".�':"�IPry b1 r k°I. I 1�¢ _ 3 ��� .--e �( yl ,„,. d� to: °r naE 44(` a + '. u nub. _ � � /4� I a wanrm"" r Ca IdlifT, f �, " I'll i r _ i I li n tom,L4 a(f Y. =a , ... .. - ���I9Hl6 8951uri 1 I I Comprehensive Annual Financial Report i For the Fiscal Year Ended September 30, 1989 CITY OF COLLEGE STATION, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 1989 PREPARED BY THE CITY OF COLLEGE STATION FINANCE DEPARTMENT WILLIAM P. HARRISON, EXECUTIVE DIRECTOR FOR FISCAL AND HUMAN RESOURCES GLENN SCHROEDER, DEPUTY DIRECTOR OF FINANCE KATHLEEN HUBBARD,CHIEF ACCOUNTANT qe. CITY OF COLLEGE STATION.TEXAS, COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 1989 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 Year Ended September 30, 1989: 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 (Budgetary Basis) -General Fund 27 Combined Statement of Revenues, Expenditures and Changes in Fund Balances-Budget and Actual (Budgetary Basis) -Special Revenue Funds 28 Combined Statement of Revenues, Expenditures and Changes in Fund Balances-Budget and Actual (Budgetary Basis) -Capital Projects Funds 29 Combined Statement of Revenues, Expenses and Changes in Retaine0d Earnings-All Proprietary Fund Types 30 Combined Statement of Cash Flows-Increase(Decrease) in Cash and Cash Equivalents-All Enterprise Funds 32 Combined Statement of Cash Flows-Increase(Decrease) in Cash and Cash Equivalents-All Internal Service Funds 34 Notes to General Purpose Financial Statements 35 (Continued) - CITY OF COLLEGE STATION.TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 1989 TABLE OF CONTENTS (CONTINUED) PAGE COMBINING. INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS AND SCHEDULES FOR THE YEAR ENDED SEPTEMBER 30. 1989: General Fund Schedule of Revenues and Other Financing Sources-Budget and Actual (Budgetary Basis) 58 Schedule of Expenditures Compared with Budget(Budgetary Basis) 60 Special Revenue Funds Combining Balance Sheet 70 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 71 Community Development Fund Statement of Revenues, Expenditures and Changes in Fund Balance-Budget and Actual (Budgetary Basis) 72 Hotel/Motel Tax Fund Statement of Revenues, Expenditures and Changes in Fund Balance-Budget and Actual (Budgetary Basis) 73 Capital Project Funds Combining Balance Sheet 76 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 77 1982 Bond Fund Statement of Revenues, Expenditures and Changes in Fund Balances-Budget and Actual (Budgetary Basis) 78 1982 Series II Bond Fund Statement of Revenues, Expenditures and Changes in Fund Balances-Budget and Actual (Budgetary Basis) 79 1984 Bond Fund Statement of Revenues, Expenditures and Changes in Fund Balances-Budget and Actual (Budgetary Basis) 80 Enterprise Funds Combining Balance Sheet 82 (Continued) -ii- CITY OF COLLEGE STATION.TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 1989 TABLE OF CONTENTS (CONTINUED) PAGE Combining Statement of Revenues, Expenses and Changes in Retained Earnings-All Enterprise Funds 84 Statement of Cash Flows-Increase(Decrease) in Cash and Cash Equivalents-Utility Fund 85 Statement of Cash Flows-Increase(Decrease) in Cash and Cash Equivalents-Sanitation Fund 86 Utility Fund Schedule of Revenues-Budget and Actual (Budgetary Basis) 87 Schedule of Expenses-Budget and Actual (Budgetary Basis) 89 Sanitation Fund Schedule of Revenues-Budget and Actual (Budgetary Basis) 93 Schedule of Expenses-Budget and Actual (Budgetary Basis) 94 Utility Fund and Sanitation Fund Schedule for Reconciliation of Revenues and Expenses(Budgetary Basis)to GAAP Basis Statement of Income 95 Internal Service Funds Combining Balance Sheet 98 Combining Statement of Revenues, Expenses and Changes in Retained Earnings 99 Statement of Cash Flows-Increase(Decrease) in Cash and Cash Equivalents -Employee Benefit Fund 100 Schedule of Revenues and Expenses-Budget and Actual (Budgetary Basis) -Utility Billing Fund 101 Statement of Cash Flows-Increase(Decrease) In Cash and Cash Equivalents -Utility Billing Fund 102 Schedule for Reconciliation of Revenues and Expenses(Budgetary Basis)to GAAP Basis Statement of Income-Utility Billing Fund 103 Statement of Cash Flows-Increase(Decrease)in Cash and Cash Equivalents -Workers'Compensation Fund 104 (Continued) - CITY OF COLLEGE STATION.TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 1989 TABLE OF CONTENTS (CONTINUED) PAGE General Fixed Assets Account Group Schedule of General Fixed Assets-By Sources 107 Schedule of General Fixed Assets-By Function and Activity 108 Schedule of Changes in General Fixed Assets-By Function and Activity 110 STATISTICAL SECTION: General Governmental Expenditures and Other Uses by Function 114 General Revenues and Other Financing Sources 116 Property Tax Levies and Collections . 118 Assessed and Estimated Actual Value of Taxable Properties 120 Property Tax Rates, Ratios and Levies-All Overlapping Governments 122 Paving Assessment Collections 124 Computation of Legal Debt Margin 125 Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt Per Capita 126 Schedule of Direct and Estimated Overlapping Debt 128 Ratio of Annual Debt Service Expenditures for General Obligation Debt to Total General Fund Expenditures 129 Schedule of Revenue Bond Coverage-Utility Fund 130 Total Bank Deposits 131 Construction Permits 132 Principal Taxpayers 133 Miscellaneous Statistical and Demographic Data 134 -iv- INTRODUCTORY SECTION -1 - CITIZENS OF COLLEGE STATION 1 MAYOR AND CITY COUNCIL I I I I APPOINTED BOARDS I / JUDGEAL ATTORNEY 1ti SECRETARY CITY I CITY MANAGER I I I I I N EXECUTIVE DIRECTOR ASSISTANT CITY MANAGER ASSISTANT CITY MANAGER EXECUTIVE DIRECTOR FISCAL/HUMAN RESOURCES COMMUNITY SERVICES GROUP OPERATIONS GROUP I MANAGEMENT SERVICES GROUP I 1 I I 1 FINANCE POLICE PUBLIC UTILITIES PUBLIC RELATIONS/ MARKETING BUDGET & RESEARCH FIRE PARKS & RECREATION MANAGMENT INFORMATION ACCOUNTING/PAYROLL DEVELOPMENT SERVICES UTILITY BILLING PURCHASING PUBLIC SERVICES FACILITIES/ENERGY PERSONNEL MANAGEMENT RISK MANAGEMENT LIBRARY MUNICIPAL COURT CITY OF COLLEGE STATION.TEXAS PRINCIPAL CITY OFFICIALS SEPTEMBER 30, 1989 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 Group Thomas E. Brymer Assistant City Manager for Operations Group John C.Woody Executive Director for Management Services Group Linda S. Piwonka Executive Director for Fiscal and Human Resources Group William P. Harrison Director of Development Services Elrey B.Ash 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 Joseph D. LaBeau City Attorney Catherine Locke City Secretary Dian B.Jones Municipal Court Judge Philip C. Banks -3- `I CITY OF COLLEGE STATION \/ P O. BOX 9960 1101 TEXAS AVENUE COLLEGE STATION,TEXAS 7 78 42-0960 (409)764-3500 March 3, 1990 Honorable Mayor Members of the City Council City of College Station,Texas The Comprehensive Annual Financial Report of the City of College Station, Texas ("City), for the fiscal year ended September 30, 1989, 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; therefore, 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. The aforementioned 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 resulted in a fifteen-month financial reporting period, making comparisons difficult between the fiscal year ended September 30, 1988, and the current twelve-month reporting period. 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. Texas A&M University ranked in the top ten nationally both in enrollment and research grants among public institutions for the school year beginning in September, 1989. 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. Recently, 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. In 1988, HCA-Greenleaf Hospital opened a psychiatric hospital in College Station and the Sandstone Psychiatric Hospital opened in 1989. The City, although not immune to the effects 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. Real estate property valuations have been essentially flat over the past several years, as detailed in the statistical section at the rear of this report. 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 area has led the State in low unemployment levels for the • past three years. -6- MAJOR INITIATIVES This Year. 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 1989-90 fiscal year budget. During 1988, the City adopted a three-year Management Information Services plan to address the computerization needs of the City. The 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. During 1989, the City purchased an IBM AS/400 computer system and enhanced municipal software for finance and personnel and approved contracts for installation of a 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 a M.I.S. Director and the creation of the position of Micro Specialist to coordinate office automation and staff training. 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. The City is responsible for the realignment of Emerald Forest Parkway on the east side to meet the State-constructed overpass and financially responsible for the right-of-way purchase for the FM 2818 extension to meet the overpass. The City is also responsible for a portion of right-of-way purchase and sidewalk and utilities relocation at Southwest Parkway and the East By-Pass. In order to facilitate the effective operations of the Public Services Department, a major renovation and expansion of their facility is currently underway. That project,with a budget of$1,400,000 and scheduled for completion in 1990, will allow that department to meet the street maintenance, vehicle maintenance,and sanitation service needs of a growing community. In order to finance these capital improvements, the City issued $3,225,000 in General Obligation Bonds in November, 1989, subsequent to this reporting period. These bonds were authorized by the electorate in 1984. The City retained its Al/A+ bond ratings on this issue. In the 1989 budget, the City Council strongly endorsed the establishment of a risk management function for the City. A risk manager was hired and a City-wide safety committee implemented. Immediate results have been obtained with a formal safety manual for the City, creation of both an accident review committee and a disability review committee, and progress made on a hazardous materials program. Lona Term. During 1989, the City started the process of development of a new capital improvements plan. This process has included the appointment of a citizens' capital improvements committee and a citizens' library committee. It is anticipated that this process will result in a bond election during 1990. -7- 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 is 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. Sinale Audit. The City receives federal assistance and 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. 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 fiscal year ended September 30, 1989, provided no instances of material weaknesses In the Internal control structure or significant violations of applicable laws or regulations relating to federal financial assistance programs of the City. Budgetary Controls. The City maintains a system of budgetary controls. The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annual budget appropriations ordinance approved by the City Council. Activities of the General Fund, Debt Service Fund, Special Revenue Funds, Capital Projects Funds, Utilities Enterprise Funds, and the Utility Billing Internal Service Fund 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. For example, 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. 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 fiscal year ended September 30, 1989. Normally,this presentation would include a comparison to revenues received in the preceding fiscal year. Fiscal year 1988 comprised the fifteen months July 1, 1987, through September 30, 1988, making those type of comparisons misleading. _8_ Percent Revenue Sou Total of Total General Fund Property Tax $1,566,885 10.31% Sales and Mixed DrinkTax 3,825,314 25.18 Franchise Tax 345,416 2.27 Licenses&Permits 97,449 .64 Fines&Forfeits 490,184 3.23 Charges for Services 500,710 3.30 Transfer from Enterprise Funds in lieu of taxes 4,728,000 31.12 Miscellaneous Revenues 659,212 4.35 Other Financing Sources 131,590 .87 Debt Service Property Tax 2,845,775 18.73 TOTAL REVENUES AND OTHER SOURCES $15.190.535 100.00% REVENUES BY SOURCE GENERAL AND DEBT SERVICE FUNDS Other FISCAL YEAR 1989 14.66% $15,190,535 Transfer In-lieu-of ,:.,/ taxes 31.12% Property Tax 29.04% Sales Tax 25.18% The most significant increase in actual continued revenue sources during 1989 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 in fiscal 1988 and a further 8%increase in fiscal 1989. These numbers reflect the continued strength in the commercial sector of the local economy. -9- The following schedule presents a summary of General Fund and Debt Service Fund expenditures for the fiscal year ended September 30, 1989. As with the revenue summary, comparisons to the previous fiscal year have not been Included. Percent Function Total of Total Current: Police $3,188,081 20.92% Fire 2,588,909 16.99 Public Services 1,392,230 9.14 Parks&Recreation 2,090,649 13.72 General Government 4,335,002 28.45 LESS: reimbursed administrative costs (2,393,775) (15.71) Debt Service: principal 1,852,938 12.16 interest 1,546,888 10.15 Capital Outlay 636.539 4.18 TOTAL EXPENDITURES $15.237.461 100.00% EXPENDITURES BY FUNCTION 9.14% GENERAL AND DEBT SERVICE FUNDS FISCAL YEAR 1989 SePubilc rvice ' 37.91% $15 237 461 Public Safety ' 12.74% General Gov't (Net of Reimbursement) _ 13.72% Parks& Recreation — 22.31% Debt Service General Fund Balance. The unrestricted fund balance of the General Fund increased by 50.2% in 1989, resulting from General Fund revenues higher than budgeted and the controlling of General Fund expenditures. The $792,154 Increase provides the City with a total fund balance that is equivalent to 40 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 1989 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$1,121,611,921 represents a 1.93% increase from fiscal year 1988. 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 1989 1988 1987 1986 General Fund $.1400 $.0900 $.0200 $.0200 Debt Service Fund .2400 .2900 .3600 .3600 -10- 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 1991. 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 fund for the fiscal year ended September 30, 1989, is as follows: OPERATING REVENUES: Amount Electric $27,921,207 Water 4,146,907 Sewer 3,146,128 Sanitation 1,776,033 Other 594,338 OPERATING EXPENSES: Wholesale Power Purchases 17,954,520 Salaries&Benefits 3,484,472 Supplies&Services 2,749,591 Reimbursed Administrative 2,689,466 Depreciation 2,067,800 NONOPERATING REVENUES (EXPENSES): Interest Earnings 1,639,953 Interest Expense (2,668,400) Other, Net (81,149) TRANSFER TO GENERAL FUND IN LIEU OF TAXES (4.651.169) NET INCOME $2.877.999 -11 - Utility Billina Fund. The Utility Billing Internal Service Fund, financed with transfers from the utility operating funds, was authorized in the 1989 budget. Formerly, this activity was accounted for as part of the General Fund. Utility billing is responsible for meter reading, billing, and collections for approximately 19,000 electric, water, sewer and sanitation accounts. The net loss of $33,602 recorded for the fiscal year ended September 30, 1989, can be attributed to$74,724 in depreciation expense posted during the year. Employee Benefits Fund. The City of College Station has a self-insured employee benefits plan, providing medical and dental insurance to employees and their families. The City annually purchases both specific and aggregate stop-loss insurance to protect the financial integrity of the plan. The plan is funded through monthly premiums of$78 paid by operating departments for each employee and $78 monthly paid by employees electing dependent coverage. During fiscal year 1989, the plan had a net loss of$343,588, caused by escalating medical costs. In January, 1990, the City Council Increased the monthly premiums per employee to $100, with monthly dependent premiums increased to $100 in January, 1990, and to $125 in July, 1990. Cost containment measures, such as a higher deductible and a non-deductible fee for emergency room visits, were also implemented effective January, 1990. Debt Administration. As of September 30, 1989, the City had a total of $19,242,967 in General Obligation Bonds and$361,326 in outstanding Certificates of Obligation. That debt, equal to$359 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, and includes property tax levies for all jurisdictions legally allowed to tax real property. Current total mill levy is $1.9327 per $100 valuation. The Utility Fund has an additional $27,829,433 in total debt,serviced through utility charges. Cash manaaement, All investment activity of the City is handled in accordance with Resolution 2- 23-89-06, authorizing and implementing the City of College Station Investment Policy. The Investment Policy, established as required by state law and in conformity with state investment statutes,ensures the safety of all funds entrusted to the City, ensures the availability of those funds for the payment of all necessary obligations of the City, and provides for the investment of funds in interest-bearing securities. Safety of the principal invested is always the primary concern. Effective October 1, 1988, the City entered into an 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 September 30, 1989,the City's investment portfolio consisted of the following: Bank Demand Accounts $851,669 3.0% Repurchase Agmts 5,315,491 18.9 Insured Cert. of Deposits 50,000 .2 U.S. Gov't Obligations 14,997,071 53.2 Government Agency Notes 6.958.756 24.7 TOTAL $28.172.987 100.0% -12- The City earned$2,625,869 on an average investment balance of approximately$30 million,a rate of return of 8.77%, for the year ended September 30, 1989. Compared to prior years'earnings and a market benchmark,the City's investment yield was: RATES OF RETURN 8.77% 9 • 8.43% 8 7 -. 6.58% P5.76% • i 3 • %i 0 1987 ACTUAL 1988 ACTUAL 1989 ACTUAL TREASURY BILL 91-DAY YIELD Investment results on the portfolio are compared to the treasury bill 91-day yield. This hypothetical portfolio consists of a series of treasury bills with re-investment at maturity in the new 91-day treasury bill. This index provides a benchmark for evaluating risk-free cash management portfolios with short-term liquidity needs for payroll and accounts payables. In accordance with normal investment reporting, rates of return do not include unrealized capital gains,that is,year-end market values higher than the original cost of a security held at the end of a fiscal year. If these unrealized capital gains of$110,121 were added to investment Income, fiscal 1989 earnings were 9.14%. OTHER INFORMATION Independent Audit. State statutes require an annual audit by independent certified public accountants. The accounting firm of Deloitte &Touche 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 auditors' 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 September 30, 1988. This was the eighth 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. -13- 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. Acknowledaements. 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 & Touche,whose professional expertise and advice have resulted in continuing improvements In the quality of the City's financial reporting. Respectfully submitt Ron Ragland illiam P. Harrison City Manager Executive Director, Fiscal and Human Resources -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 September 30, 1988 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 (CAFR's) achieve the highest standards in government accounting and financial reporting. PN 1C�c ',',14i k��.•'OF THE •.'�,� �•(......NITED STATE$ y President 2 ON ocAst,N a V" � �700 31NA1.Doti r/ I�L(r(i�• CNIC�60 '���i�� . Executive Director -15- -16- FINANCIAL SECTION -17- � I If ' !l!i 1200 Travis Facsimile:(713)651-1737 Houston,Texas 77002-6054 ITT Telex:4995640 Telephone:(713)651-1700 INDEPENDENT AUDITORS' REPORT Mayor Larry Ringer and Members of City Council of the City of College Station,Texas: We have audited the general purpose financial statements of the City of College Station,Texas ("City') as of September 30, 1989 and for the year then ended, listed in the foregoing table of contents. These general purpose 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 general purpose 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, 1989, and the results of its operations and the cash flows of its proprietary fund types for the year then ended in conformity with generally accepted accounting principles. Our audit also comprehended the combining and individual fund and account group financial statements and schedules listed in the foregoing table of contents. In our opinion, such supplemental financial 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. x9.tivitLIk Jukek- December 21, 1989 - 19- 2 0 (1"-Sk 1111° -21 - �I CITY OF COLLEGE STATION.TEXAS COMBINED BALANCE SHEET-ALL FUND TYPES AND ACCOUNT GROUPS SEPTEMBER 30, 1989 Governmental Fund Types Special Debt Capital ASSETS AND OTHER DEBITS General Revenue Service Protects ASSETS: Cash and investments(Note 2) $2,817,761 $155,922 $1,880,417 $4,670,841 Receivables: Delinquent taxes(Note 3) 80,558 339,555 Accounts 2,944 73,299 Paving assessments 210,631 Accrued interest 44,685 3,084 29,653 75,490 Ambulance services 37,037 Loans 187,140 Grants 8,100 61,290 • Other 149,954 1,254 Foundation(Note 4) 3,000,000 Less allowance for uncollectible accounts (55,863) (2,944) (73,299) Inventories 72,708 Prepaid costs 89,164 25 Restricted assets: Cash and investments(Note 2) 855,039 Accrued interest 15,429 Property and equipment(Note 5) Accumulated depreciation Deferred charges OTHER DEBITS: Amount available for • retirement of bonded indebtedness Amount to be provided for: Retirement of bonded indebtedness Accrued vacation leave TOTAL ASSETS $7.325.203 $408.715 $2.249.625 $4.746.331 See notes to general purpose financial statements. -22- Proprietary Fund Tvoes Account Groups General General Total Internal Fixed Long-Term (Memorandum Enterprise Service Assets Debt Only) $5,061,860 $453,285 $15,040,086 420,113 5,144,514 319 5,221,076 210,631 114,665 7,821 275,398 37,037 187,140 9,724 79,114 206,029 357,237 3,000,000 (323,989) (456,095) 1,301,430 1,374,138 83,337 44,450 216,976 12,062,922 13,139,276 158,351 173,780 69,607,563 389,048 $41,990,736 111,987,347 (15,524,609) (74,176) (15,598,785) 280,968 280,968 $1,875,247 1,875,247 17,729,046 17,729,046 514.486 514.486 $78.404.080 $ 820.747 $41.990.736 $20.118.779 $156.064.216 (Continued) -23- CITY OF COLLEGE STATION.TEXAS COMBINED BALANCE SHEET-ALL FUND TYPES AND ACCOUNT GROUPS (Cont'd) SEPTEMBER 30, 1989 Governmental Fund Types LIABILITIES, EQUITY, Special Debt Capital AND OTHER CREDITS General Revenue Service Protects LIABILITIES: Accounts payable $ 221,863 $ 16,144 $ 19,064 $ 160,231 Accrued liabilities 248,881 2,449 15,760 Retainage payable 1,372 7,830 37,183 Obligation under capital lease-current(Note 12) 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 2,219 7,765 Deferred revenues-other 388,543 187,140 339,554 Deferred revenues- Foundation (Note 4) 1,813,569 Unamortized discount- Foundation (Note 4) 1,186,431 Long-term debt (Note 6): Revenue bonds General obligation bonds Certificates of obligation Obligation under capital lease(Note 12) Accrued vacation leave Total liabilities 3.862.878 221.328 374.378 197,414 EQUITY AND OTHER CREDITS: Contributed capital Investment in general fixed assets Retained earnings(deficit): Reserved Unreserved Fund balances: Reserved (Note 13) 133,239 9,707 1,875,247 6,972 Unreserved: Designated for subsequent years'expenditures 884,615 4,066,163 Undesignated 2.444.471 177.680 475.782 Total fund equity 3.462.325 187.387 1.875.247 4.548.917 TOTAL LIABILITIES AND FUND EQUITY $7.325.203 $408.715 $2.249.625 $4.746.331 See notes to general purpose financial statements. -24- Proprietary Fund Tvges Account Groups General General Total Internal Fixed Long-Term (Memorandum Enterprise Service Assets Debt Only) $2,272,258 $104,408 $2,793,968 233,829 328,164 829,083 46,385 347,231 347,231 67,047 67,047 351,070 351,070 2,465,000 2,465,000 375,331 375,331 26,200 26,200 1,935,830 1,935,830 9,984 7,282 922,519 1,813,569 1,186,431 21,820,000 21,820,000 2,907,102 $19,242,967 22,150,069 235,800 361,326 597,126 3,070,961 3,070,961 109.995 22.503 514.486 646.984 36,224.936 455,075 20.118.779 61.454.788 10,293,535 381,137 10,674,672 $41,990,736 41,990,736 10,895,160 10,895,160 20,990,449 (15,465) 20,974,984 2,025,165 4,950,778 3.097.933 42.179.144 365.672 41.990.736 94.609.428 $78.404.080 $820.747 $41.990.736 $20.118.779 $156.064.216 -25- CITY OF COLLEGE STATION.TEXAS COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-ALL GOVERNMENTAL FUND TYPES FOR THE YEAR ENDED SEPTEMBER 30, 1989 Governmental Fund Types Total Special Debt Capital (Memorandum REVENUES General Revenue Service Protects Only) Taxes $5,737,616 $708,828 $2,845,775 $9,292,219 Licenses and permits 97,449 97,449 Fines and forfeits 490,184 490,184 Charges for services 500,710 500,710 Paving assessments 21,722 21,722 Grants 18,803 309,271 328,074 Rentals 120,267 44,394 164,661 interest 320,967 16,633 177,452 $426,882 941,934 Miscellaneous 112.005 6.074 479 118.558 Total revenues 7.419.723 1.085.200 3.023.227 427,361 11.955.511 EXPENDITURES Current: General government 674,158 647,158 Fiscal and human resources 1,154,285 1,154,285 Development services 1,210,932 1,210,932 Sanitation and fleet services 424,483 424,483 Streets and drainage 967,747 967,747 Community services 33,870 33,870 Police 3,188,081 3,188,081 Fire 2,588,909 2,588,909 Parks 2,090,649 2,090,649 Management services 899,683 899,683 Public agency funding 276,807 409,222 686,029 Housing rehabilitation 187,745 187,745 Reimbursed administrative expenditures (2,393,775) 238,194 220,355 (1,935,226) Other 112,267 58,910 329 171,506 Capital outlay 636,539 52,785 1,267,416 1,956,740 Debt service: Principal retirement 1,852,938 1,852,938 Interest and fiscal charges 1.546.888 1.546.888 Total expenditures 11.837.635 946.856 3.399.826 1.488.100 17.672.417 Excess(deficiency) of revenues over expenditures (4.417.912) 138.344 (376.599) (1.060.739) (5.716.906) OTHER FINANCING SOURCES (USES),: Operating transfers in (Note 11) 4,501,169 226,831 150,000 4,878,000 Operating transfers out (Note 11) (76,831) (150,000) (226,831) Other 23.520 (3,935) 19.585 Total other financing sources(uses) 4.524.689 (76.831) 222.896 4.670.754 Excess(deficiency) of revenues and other financing sources over expenditures and other uses 106,777 61,513 (153,703) (1,060,739) (1,046,152) FUND BALANCES, OCTOBER 1, 1988 3.355.548 125.874 2.028,950 5.609.656 11.120.028 FUND BALANCES, SEPTEMBER 30, 1989 $3.462.325 $ 187.387 $1.875.247 $4.548.917 $10.073.876 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(BUDGETARY BASIS) GENERAL FUND FOR THE YEAR ENDED SEPTEMBER 30, 1989 Variance Favorable REVENUES Budaet Actual (Unfavorable) Taxes $5,621,500 $5,737,615 $116,115 Licenses and permits 110,135 97,449 (12,686) Fines and forfeits 380,000 490,184 110,184 Charges for services 420,330 500,711 80,381 Paving assessments 61,800 21,722 (40,078) Grants 98,024 18,803 (79,221) Rentals 50,270 120,267 69,997 interest 65,625 218,056 152,431 Miscellaneous revenues 35.675 107.805 72,130 Total revenues 6.843.359 7.312.612 469.253 EXPENDITURES Current: General government 712,298 667,068 45,230 Fiscal and human resources 1,170,856 1,154,286 16;570 Development services 1,251,571 1,210,931 40,640 Sanitation and fleet services 442,343 426,570 15,773 Streets and drainage 1,067,846 967,747 100,099 Community Services 33,870 33,870 Police 3,412,623 3,188,733 223,890 Fire 2,698,698 2,597,369 101,329 Parks 2,178,931 2,103,568 75,363 Management services 948,478 899,682 48,796 Public agency funding 278,388 276,807 (1,581) Reimbursed administrative expenditures (2,415,031) (2,393,775) (21,256) Other (364.0961 59.428 (423.5241 Total expenditures 11.416.775 11.192.284 224.491 Excess(deficiency) of revenues over expenditures (4.573.4161 (3.879.6721 693.744 OTHER FINANCING SOURCES, Payments in lieu of taxes 4,501,169 4,501,169 Sale of general fixed assets 19.049 19.049 Total other financing sources 4,501,169 4,520,218 19,049 EXCESS (DEFICIENCY) OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES $ (72.2471 $ 640.546 $712.793 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(BUDGETARY BASIS) SPECIAL REVENUE FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 1989 Variance Favorable REVENUES Budget Actual (Unfavorable) Taxes $ 680,000 $ 708,828 $ 28,828 Grants 1,106,160 309,271 (796,889) Rentals 40,000 44,394 4,394 interest 5,000 16,633 11,633 Other 130.000 6.074 (123.926) Total Revenues 1.961.160 1.085.200 (875.960) EXPENDITURES Current: Public Agency Funding 464,222 409,222 55,000 Housing Rehabilitation 455,550 187,745 267,805 Reimbursed Administrative expenditures 244,059 238,194 5,865 Other 163,785 58,910 104,875 Capital outlay 518.888 52.785 466.103 Total expenditures 1.846.504 946.856 899.648 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 114.656 138.344 23.688 OTHER FINANCING SOURCES(USES) Operating Transfers Out (76.831) (76,831) EXCESS (DEFICIENCY)OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHERS USES $ 37,825 $ 61.513 $ 23.688 _28_ CITY OF COLLEGE STATION.TEXAS COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL(BUDGETARY BASIS) CAPITAL PROJECTS FUNDS FOR YEAR ENDED SEPTEMBER 30, 1989 Variance Favorable Budget Actual (Unfavorable) REVENUES Interest $ 280,000 $ 426,882 $ 146,882 Other 479 479 Total Revenues 240.000 427.361 147,361 EXPENDITURES: Reimbursed Administrative Expenditures 235,841 220,355 15,486 Other 329 (329) Capital Outlay 3.427.209 1.267.416 2.159.793 Total Expenditures 3.663.050 1.488.100 2.174.950 Excess(deficiency)of revenues over expenditures (3,383,050) (1,060,739) 2,322,311 OTHER FINANCING SOURCES (USES): , Operating Transfers In 150,000 150,000 Operating Transfers Out 150.000 (150,0001 Total Other Financing Sources(Uses) 150,000 150,000 Excess(deficiency)of revenues over expenditures and other uses ($3.533.050) $1.060.739 $2.472.311 -29- CITY OF COLLEGE STATION.TEXAS COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS-ALL PROPRIETARY FUND TYPES FOR THE YEAR ENDED SEPTEMBER 30, 1989 Proprietary Fund Types Total Internal (Memorandum Enterprise Service Only) OPERATING REVENUES Electric $27,921,207 $27,921,207 Water 4,146,907 4,146,907 Sewer 3,146,128 3,146,128 Sanitation 1,776,033 1,776,033 Charges for services $884,860 884,860 Premiums 1,008,530 1,008,530 Flex benefits withheld 266,195 266,195 Other 594.338 594.338 Total operating revenues 37.584.613 2.159.585 39.744.198 OPERATING EXPENSES Purchased power(Note 8) 17,954,520 17,954,520 Salaries and benefits 3,484,472 640,642 4,125,114 Supplies 326,551 25,342 351,893 Maintenance 510,157 9,172 519,329 Purchased professional services 349,179 4 349,183 Purchased property services 1,238,273 20,352 1,258,625 Other services 325,431 65,334 390,765 Claims 1,294,049 1,294,049 Administration fee 49,472 49,472 Premiums 148,903 148,903 Flex benefits paid 266,533 266,533 Other 7,554 7,554 Reimbursed administrative 2,689,466 79,218 2,768,684 Depreciation: Electrical system 682,315 682,315 Water system 727,504 727,504 Sewer system 525,492 525,492 Sanitation system 132,489 132,489 Other 74.724 74,724 Total operating expenses 28.945.849 2.681.299 31.627.148 OPERATING INCOME(LOSS) 8.638.764 ,__(521.714). 8.117.050 NONOPERATING REVENUES (EXPENSES) • Interest earnings 1,639,953 43,982 1,683,935 Interest expense (2,668,400) (2,668,400) Other,net (81.149) 2.628 (78.521) Total nonoperating revenues (expenses) (1.109.596) 46.610 (1.062.986) (Continued) 30 CITY OF COLLEGE STATION,TEXAS COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS-ALL PROPRIETARY FUND TYPES FOR THE YEAR ENDED SEPTEMBER 30, 1989(Cont'd) Proprietary Fund Types Total Internal (Memorandum Enterprise Service Only) Income(loss)before operating transfers $ 7,529,168 $(475,104) $ 7,054,064 Operating transfers out (4.651.1691 (4.651.1691 Net Income(loss) 2,877,999 (475,104) 2,402,895 RETAINED EARNINGS, OCTOBER 1, 1988 29.007.610 459.639 29,467.249 RETAINED EARNINGS (DEFICIT), SEPTEMBER 30, 1989 $31.885.609 $ (15.465) $31.870.144 See notes to general purpose financial statements. -31 - CiTY OF COLLEGE STATION.TEXAS ALL ENTERPRISE FUNDS COMBINED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED SEPTEMBER 30, 1989 INCREASE(DECREASE) IN CASH AND CASH EQUIVALENTS Cash flows from operating activities: Cash received from customers $37,480,440 Cash payments to suppliers for goods and services (23,539,603) Cash payments to employees for services (3,348,004) Other operating revenues 594.338 Net cash provided by operating activities $11,187,171 Cash flows from noncapital financing activities: Operating transfers out to other funds (4,651,169) Cash payments to other funds (2,043,535) Cash received from other funds 246.342 Net cash used for noncapital financing activities (6,448,362) Cash flows from capital and related financing activities: Acqulstlon and construction of capital assets (2,050,956) Principal paid on revenue bonds (2,545,000) Principal paid on general obligation bonds (378,679) Principal paid on certificates of obligation (26,200) Principal paid on obligation under capital lease (318,487) interest paid on revenue bonds (2,213,370) interest paid on general obligation bonds (177,574) Interest paid on certificates of obligation (34,584) interest paid on obligation under capital lease (274,512) Proceeds from sale of equipment 12,329 Cash received from capital grants 27,769 Cash received from special assessments 3.487 Net cash used for capital and related financing activities (7,975,777) Cash flows from investing activities: Purchase of investments (66,848,707) Proceeds from sale and maturities of investments 66,459,042 Interest on investments 1.384.676 Net cash provided by investing activities 995.011 Net decrease in cash (2,241,957) Cash and cash equivalents, October 1, 1988 19.541.183 Cash and cash equivalents, September 30, 1989 $17.299.226 (Continued) -32- CITY OF COLLEGE STATION.TEXAS ALL ENTERPRISE FUNDS COMBINED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED SEPTEMBER 30, 1989 INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS(Cont'd) Reconciliation of operating income to net cash provided by operating activities: Operating income $8,638,764 Adjustment to reconcile operating income to net cash provided by operating activities: Depreciation $2,067,800 Provision for uncollectable accounts (95,103) Change in assets and liabilities: Decrease in accounts receivable 490,165 increase in inventory (33,457) increase in prepaid costs (9,932) Increase In accounts payable 117,673 Increase In accrued liabilities 744 increase In accrued vacation 10.517 Total adjustments 2.548.407 Net cash provided by operating activities $11.187.171 -33- CITY OF COLLEGE STATION.TEXAS, ALL INTERNAL SERVICE FUNDS COMBINED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED SEPTEMBER 30, 1989 INCREASE(DECREASE) IN CASH AND CASH EQUIVALENTS Cash flows from operating activities: Cash received from customers $2,272,906 Cash payments to suppliers for services (1,778,402) Cash payments to employees for services (605.9151 Net cash used by operating activities $ (111,411 Cash flows from noncapital financing activities: Cash received from other funds 221.076 Net cash provided by noncapital financing activities 221,076 Cash flows from investing activities: Purchase of investments (942,515) Proceeds from sale and maturities of investment securities 872,211 Interest on investments 36.386 Net cash used in investing activities (33.918' Net increase in cash and cash equivalents 154,965 Cash and cash equivalents,October 1, 1988 63.066 Cash and cash equivalents,September 30, 1989 $ 218.031 Reconciliation of operating income to net cash used by operating activities: Operating loss $ (521.714) Adjustments to reconcile operating income to net cash used by operating activities: Depreciation $ 74,724 Change in assets and liabilities: Decrease in accounts receivable 113,321 Increase in prepaid costs (8,769) Increase in accounts payable 104,408 Increase in accrued liabilities 104,116 increase in accrued vacation 22.503 Total adjustments 410.303 Net cash used by operating activities $ (111.4111 -34- CITY OF COLLEGE STATION.TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 1989 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES REPORTING ENTITY The City of College Station,Texas ("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 Tvoes 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 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). -35- CITY OF COLLEGE STATION.TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 1989 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES-(Cont'd) FUND ACCOUNTING-(Cont'd) Proprietary Fund Tvnes 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. 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 The accounting and financial reporting treatment applied to a fund is determined by its measurment focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilitites generally are included on the balance sheet. Operating statements of these funds present increases and decreases in net current assets. All proprietary funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and all liabiltities associated with the operation of these funds are included on the balance sheet. Fund equity is segregated into contributed capital and retained earnings components. Proprietary fund-type operating statements present increases and decreases in net total assets. The modified accrual basis of accounting is used by all governmental fund types. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. -36- CITY OF COLLEGE STATION.TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 1989 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES-(Cont'd) Those revenues susceptible to accrual are property taxes, franchise taxes, interest revenue and charges for services. Sales taxes collected and held by the State at year-end on behalf of the City are also recognized as revenue. Fines and permits are not susceptible to accrual because generally they are not measurable until received in cash. 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. All proprietary funds are accounted for using the accrual basis of accounting. Revenues in these funds are recognized when they are earned, and 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 year. -37- CITY OF COLLEGE STATION.TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 1989 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES-(Cont'd) BUDGETS AND BUDGETARY ACCOUNTING-(Cont'd1 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. 7) Formal budgetary integration is legally enacted and employed as a management control device during the year for the General Fund, all Special Revenue Funds, all Enterprise Funds,the Debt Service Fund,all Capital Project Funds,and the Utility Billing Fund. 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, Computer Project Fund, or Fireman's Relief 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, 1989, on the GAAP basis to the budgetary basis are as follows: Revenues and Other Financing Sources-GAAP basis $11.944.412 Reconciling items: Parks Escrow Fund revenues-primarily interest (19,889) Computer Project Fund Revenues-interest (87,925) Fireman's Relief Fund (4,367) Other 599, Total reconciling items (111.582) Total revenues-Budget(Non-GAAP basis) $11.832.830 -38- CITY OF COLLEGE STATION.TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 1989 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, 1989, on the GAAP basis to the budgetary basis are as follows: Expenditures-GAAP basis $11.837.635 Reconciling items: Parks Escrow Fund expenditures (119,248) Computer Project expenditures (585,724) Fireman's Relief Fund (3,675) Current year encumbrances 131,464 Adjustment to vacation accrual 4,783 Adjustment to allowance for uncollectible accounts 22,650 Accounts payable accrual (21,302) Inventory adjustment (14,988) Adjustment to receivables (10,628) Other (48.6841 Total reconciling items (645.3511 Total expenditures- Budget(Non-GAAP basis) $11.192.284 Budgets for the Special Revenue Funds, Debt Service Funds,and Capital Project Funds are adopted on a basis consistent with GAAP. 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. See the schedule at page 95 for a reconciliation of revenues and expenses (Budgetary basis) to the GAAP basis statement of income for the Utility Fund and the Sanitation Fund. -39- CITY OF COLLEGE STATION.TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 1989 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES-(Cont'd) BUDGETS AND BUDGETARY ACCOUNTING.-(Cont'd) The budget for the Utility Billing Internal Service Fund is 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) Budgetary amounts do not include provisions for adjustments in accrued vacation leave. (c) The City does not budget for depreciation on Utility Billing Fund fixed assets. See the schedule at page 103 for a reconciliation of revenues and expenses (Budgetary basis)to the GAAP basis statement of income for the Utility Billing Fund. 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. 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 and are reappropriated in the budget of the subsequent year. INVENTORY Inventory is valued at the lower of average cost or market value, using the first-in,first-out method. The costs of government fund type and proprietary fund Inventories are recorded as expenditures when consumed rather than when purchased. 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 in the General Fixed Assets Account Group at cost where historical records are available and at an estimated historical cost where no historical records exist. Donated fixed assets are valued at their estimated fair market value. Public domain fixed assets consisting of improvements other than buildings are also included in the General Fixed Assets Account Group. -40- CITY OF COLLEGE STATION.TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 1989 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 and the utility billing internal service fund is stated at the historical cost of acquisition, construction or,with respect to contributions of construction from third parties (principally developers) at fair market value. 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 above funds on a straight-line basis over the following estimated service lives: Utility Systems 25-40 years Buildings and Improvements 5-50 years Equipment 3-10 years 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. -41 - CITY OF COLLEGE STATION.TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 1989 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES-(Cont'd) SELF-INSURANCE The City is self-insured for health benefits, and the plan is administered by Alta Health Strategies, 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, 1989. STATEMENTS OF CASH FLOWS The City has elected to use the direct method in presenting the Statements of Cash Flows for each of the Proprietary and Internal Service Funds. In addition, for purposes of the statements of cash flows, cash and cash equivalents include demand accounts, repurchase agreements and government agency notes with a maturity of twelve months or less when purchased. 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 maintains a cash and Investment pool that is available for use by all funds. Each fund type's portion of this pool is disclosed on the combined balance sheet as"Cash and Investments." At year-end, the carrying amount of the City's cash deposits and certificates of deposit was $904,988 and the bank balance was $1,621,896. The bank balance was entirely covered by federal depository insurance or by pledged collateral held by a third-party custodian in the City's name. Such total coltateralization and insurance coverage is required by State of Texas statutes. -42- CITY OF COLLEGE STATION.TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 1989 2. CASH AND INVESTMENTS-(Cont'd) 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). All securities are purchased delivery-vs.-payment and held in the City's name in a safekeeping account at First City National Bank of Houston. The City's investments at September 30, 1989, are shown below. The carrying amount is the cost at date of purchase and approximates market, except for U.S. Government Obligations, where market values may be independently obtained: Carrying Market Amount Value Included in Cash and Investments: Repurchase Agreements $2,817,210 $2,817,210 U.S. Gov't Obligations 7,948,448 8,006,812 Gov't Agency Notes 3,688,141 3,688,141 Included in Restricted Assets: Repurchase Agreements 2,498,281 2,498,281 U.S. Gov't Obligations 7,048,623 7,100,380 Gov't Agency Notes 3.270.615 3,276.713 Total $27.271.318 $27.387.537 All of the City's investments consist of U.S. Government Securities and repurchase agreements of U.S. Government Securities and are held by the City or by its agent in the City's name (Category One credit risk). 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$100 of assessed valuation for general governmental services and for the payment of principal and interest on general long-term debt. The combined current tax rate to finance general government services including debt service for the year ended September 30, 1989,was$.38 per$100 of assessed valuation. -43- CITY OF COLLEGE STATION.TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 1989 3. PROPERTY TAXES-(Cont'd) The Brazos County Appraisal District ("Appraisal District") is responsible for the recording and appraisal of property for all taxing units in Brazos County. The Appraisal District is required to assess property at 100%of its appraised value. Real property must be reappraised at least every four years. The City may, at its own expense, require annual reviews by the Appraisal District through various appeals and, if necessary, legal action. Under this system if the rate, excluding tax rates for bonds and other contractual obligations adjusted for new improvements, exceeds the rate for the previous year by more than 8%,qualified voters of the City may petition for an election to determine whether to limit the tax rate to no more than 8%above the tax rate of the previous year. 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 when 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 year ended September 30, 1989,are as follows: Additions Retirements Beginning and and Ending Balance Transfers In Tranfers Out Balance Land $4,448,312 $ 70,679 $4,518,991 Buildings and Improvements 10,820,271 28,746 10,849,017 Pavings, Sidewalks and Streets 11,518,300 357,214 11,875,514 Machinery,Tools and Equipment 6,288,843 757,992 $ 406,683 6,640,152 Motor Vehicles 1,530,647 191,326 152,809 1,569,164 Parks System 5,410,153 265,111 5,675,264 Construction in Progress 95,739 2,007.674 1.240.779 862.634 Total $40.112.265 $3.678,742 $1.800.271 $41.990,736 -44- CITY OF COLLEGE STATION.TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 1989 5. FIXED ASSETS-(Cont'd) A summary of proprietary fund type property and equipment at September 30, 1989, is as follows: Utility Sanitation Utility Billing Fund Fund Fund Total Electric System $11,363,107 $11,363,107 Water System 27,186,566 27,186,566 Sewer System 19,052,284 19,052,284 Sanitation System 1,928,662 1,928,662 Utility Billing $389,048 389,048 Buildings and Improvements 6,977,781 6,977,781 Land 1,568,559 55,190 1,623,749 Construction in Progress 1.475.414 1,475.414 Total 67,623,711 1,983,852 389,048 69,996,611 Less Accumulated Depreciation (14.162.463) (1.362.146) (74.176) (15,598.785) Net $53.461.248 $ 621.706 $ 314,872 $54.397.826 6. LONG-TERM DEBT The following is a summary of long-term debt transactions for the year ended September 30, 1989: Beginning Incurred/ Ending Balance Issued Matured Balance Governmental Fund Tvoes General Obligation Bonds $20,993,888 $1,750,921 $19,242,967 Certificates of Obligation 462,943 101,617 361,326 Accrued Vacation Leave 554.899 $ 586,413 626.826 514,486 Subtotal 22.011.730 586.413 2.479.364 20.118.779 Proorietary Fund Types Utility Revenue Bonds 26,830,000 2,545,000 24,285,000 General Obligation Bonds Serviced by Utility Revenues 3,661,112 378,679 3,282,433 Certificates of Obligation Serviced by Utility Revenues 288,200 26,200 262,000 Accrued Vacation Leave: Utility Fund 78,447 102,985 97,157 84,275 Sanitation Fund 21,033 34,592 29,905 25,720 Utility Billing Fund 47,889 25,386 22,503 Obligations under Capital Lease-(note 12) 3.736.679 318.487 3.418.192 Subtotal 34,615,471 185.466 3.420.814 31.380.123 Total Long-Term Debt $56.627.201 $ 771.879 $5.900.178 $51.498.902 -45- CITY OF COLLEGE STATION.TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 1989 6. LONG-TERM DEBT-(Cont'd) Long-term debt at September 30, 1989, consisted primarily of bonds maturing serially and is summarized as follows: interest Series Principal Rates(%) Matures Balance General Obligation Bonds: 1968 Issue 4.40-6.00 1995 $ 235,000 1971 Issue 4.70-7.00 1991 50,000 1976 Issue 4.00-6.00 1997 600,000 1978 I Issue 4.70-6.00 1998 288,000 1978 II Issue 5.15-5.80 1999 1,520,000 198211 Issue 9.00-11.00 1993 1,475,000 1984 Issue 9,50-11.00 1995 2,700,000 1987 Refunding Issue 4.50-7.70 2004 9,624,967 1988 Refunding Issue 6.50-8.15 1996 2,750,000 Subtotal 19.242.967 Certificates of Obligation: Ladder Truck 60%of Prime 1994 201,386 C of C Building 57.5%of Prime 1993 159.940 Subtotal 361.326 Utility Revenue Bonds-1985 Refunding Issue 6.00-9.50 2001 24,285,000 General Obligation Bonds Serviced by Utility Revenues: 1976 Issue 4.00-6.00 1997 1,800,000 19781 Issue 4.70-6.00 1998 1,312,000 1987 Sewage Treatment Plant 4.50-7.70 2004 170,433 Subtotal 3.282,433 Certificates of Obligation Serviced by Utility Revenues: Utility Service Center 12.00 1999 262,000 Total $47,433,726 -46- CITY OF COLLEGE STATION.TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 1989 6. LONG-TERM DEBT-(Cont'd) Debt service requirements to maturity for all bonds are summarized as follows: General Certificates Obliaation Bonds of Obliaation Year Principal Interest Principal Interest 1990 $ 1,806,669 $ 1,374,582 $106,293 $25,505 1991 1,887,417 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 1,560,307 780,792 1995-1999 6,501,873 1,855,194 2000-2002 3,451,884 675,149 2003 447.083 17.213 Total $19.242.967 $7.790.522 $361.326 $54,018 General Obligation Utility Bonds Serviced by Revenue Bonds Utility Revenues Year Principal Interest Principal Interest 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 2,225,000 1,247,595 379,201 79,973 1995-1999 8,610,000 3,029,703 1,350,308 171,763 2000-2002 3.920.000 498.937 49.344 12.176 Total $24.285.000 $11.705.740 $3.282.433 $817.902 Certificates of Obligation Serviced bv Utility Revenues Year Principal Interest 1990 $ 26,200 $ 31,440 1991 26,200 28,296 1992 26,200 25,152 1993 26,200 22,008 1994 26,200 18,864 1995-1999 104,800 44,016 2000 26.200 3.144 Total $262.000 $172.920 -47- CITY OF COLLEGE STATION.TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 1989 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 expenses 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 1.40 times the average annual debt service on all revenue bonds and other indebtedness payable from those revenues and 1.25 times the maximum annual debt service on all revenue bonds and other indebtedness payable from those revenues. The maximum annual debt service is defined as the maximum principal and interest payments to be paid in any one year remaining in the life of the bonds, and the average annual debt service is defined as the sum of all principal and interest payments due over the remaining life of the bonds divided by the remaining life of the bonds. The City is in compliance with these requirements. In prior years, the City defeased certain revenue refunding bonds totaling $39,610,000 and certain general obligation bonds and certificates of obligation totaling $11,821,126 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, 1989, the outstanding principal balance of these defeased revenue refunding bonds was$24,685,000. At September 30, 1989, the outstanding principal balance of the defeased general obligation bonds and certificates of obligation was $8,636,813. 7. BONDS AVAILABLE FOR SALE Authorized general obligation bonds available for future issue are as follows: Year Authorized Unissued Amount Street improvements 1984 $1,600,000 Right-of-way acquisition 1984 700,000 Maintenance and storage buildings 1984 925,000 Drainage improvements 1984 1,230,000 Public buildings(Fire Station#4) 1984 700,000 Oversize participation-Bridges 1984 500,000 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. During November, 1989,the City issued$3,225,000 General Obligation Bonds, Series 1989. The Bonds were authorized in 1984, as indicated above, for street improvements, right-of-way acquisition, and maintenance and storage buildings. The bonds mature serially from December, 1990, to December, 2004, and carry an average coupon rate of 6.793%. The bonds have been rated Al and A+, respectively,by Moody's and Standard&Poors. -48- CITY OF COLLEGE STATION.TEXAS, NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 1989 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$1,496,000. 9. RETIREMENT PLAN Plan Description The City provides pension benefits for all of its full-time employees through a nontraditional, joint contributory, defined contribution plan in the state-wide Texas Municipal Retirement System ("TMRS"), an agent multiple-employer public employee retirement system with over 500 plans currently in operation. Benefit amounts are determined by the sum of the employee's contribution to the plan, with interest, and the City-financed monetary credits, with interest. At the date the plan began, the City granted monetary credits for service rendered before the plan began of a theoretical amount equal to two times what would have been contributed by the employee, with interest, prior to establishment of the plan. The City currently provides monetary credits for service since the plan began of 200%of the employee's accumulated contributions, less amounts available from forfeitures. In addition, the City can grant as often as annually another type of monetary credit referred to as an updated service credit which is a theoretical amount which,when added to the employee's accumulated contributions and the monetary credits for service since the plan began, would be the total monetary credits and employee contributions accumulated with interest if the current employee contribution rate and City matching percent had always been in existence and if the employee's salary had always been the average of his salary in the last three years. At retirement, the benefit is calculated as if the sum of the employee's accumulated contributions with interest and the employer-financed monetary credits with interest were used to purchase an annuity. Plan members can retire at ages 60 and above with 10 or more years of service or with 25 years of service regardless of age. The plan also provides death and disability benefits. A member is vested after 10 years, but he must leave his accumulated contributions in the plan. If a member withdraws his own money, he is not entitled to the employer-financed monetary credits, even if he was vested. These benefit provisions and all other requirements are established by State statute with certain options available by participating municipalities. Contribution Requirements The contribution rate for the employees is 5%, and the City's matching percent is currently 6.14% (calendar year 1990), 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. The City's total payroll for the year ended September 30, 1989, was $11,407,309, and the City's contributions were based on a payroll of$11,028,053. Both the City and the covered employees made the required contributions,amounting to $652,444(5.59%of covered payroll for the months in calendar year 1988 and 6.04% for the months in calendar year 1989) for the City and $551,417 (5%) for the employees. There were no related party transactions, and the City has no further liability to employees or TMRS under the plan. -49- CITY OF COLLEGE STATION.TEXAS, NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 1989 9. RETIREMENT PLAN-(Cont'd) Fundina Status Although the substance of the plan is not to provide a defined benefit, additional disclosure is appropriate due to the nontraditional nature of the defined contribution plan which had an initial unfunded pension benefit obligation due to the monetary credits granted by the City for services rendered before the plan began and which can have additions to the unfunded pension benefit obligation through the periodic adoption of increases in benefit credits and benefits. The pension benefit obligation shown below is similar in nature to the standardized disclosure measure for defined benefit plans except that there is no need to project salary increases since the benefit credits earned for service to date are not dependent upon future salaries. The calculations were made as part of the annual actuarial valuation as of December 31, 1988. Because of the money-purchase nature of the plan, the interest rate assumption, currently 8.5% per year, does not have as much impact on the results as it does for a defined benefit plan. Market value of assets is not determined for each city's plan,but the market value of assets for TMRS as a whole was 103.6%of book value as of December 31, 1988. The total unfunded pension benefit obligation at December 31, 1988,the latest available information, is as follows: Pension Benefit Obliaation: Annuitants currently receiving benefits $ 587,321 Terminated employees 751,520 Current employees Accumulated employee contributions including allocated invested earnings 3,737,130 Employer-financed vested 3,986,243 Employer-financed nonvested 1.987.261 Total 11,049,475 Net assets available for benefits, at book value 8.806.929 Unfunded pension benefit obligation $2.242.546 The unfunded pension benefit obligation is to be amortized with a level percent of payroll. The rate available to amortize the unfunded pension benefit obligation is calculated as the level percent of payroll needed to amortize the unfunded actuarial liability over the remainder of the plan's 25-year amortization period. When the City periodically adopts updated service credits and increases in annuities in effect, the increased unfunded actuarial liability is to be amortized over a new 25-year period. Currently, the unfunded actuarial liability is being amortized over the 25-year period which began January, 1989. The book value of assets is amortized cost for bonds and original cost for short-term securities and stocks. The actuarial assumptions used to compute the actuarially determined City contribution rate are the same as those used to compute the pension benefit obligation. The amounts above reflect changes in actuarial assumptions since the previous actuarial valuation, which had the effect of decreasing the pension benefit obligation by$852,532. The amounts above also reflect the adoption of changes in the plan since the previous actuarial valuation, which had the effect of increasing the pension benefit obligation by$392,715. -50- CITY OF COLLEGE STATION.TEXAS NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 1989 9. RETIREMENT PLAN-(Contd) Trend Information Trend information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due. The following schedule illustrates the trend information for plan years ending December 31, 1988,and December 31, 1987. Trend information prior to 1987 is unavailable. Unfunded Employer Net Assets Available Pension Benefit Contribution for Benefits as a Obligation as as a Percentage Plan Percentage of Pension a Percentage of of Annual Year Benefit Obliation Covered Payroll Covered Payroll 1987 74% 20% 5.1% 1988 80% 20% 5.6% Ten-year historical trend information presenting TMRS' progress in accumulating sufficient assets to pay benefits when due is presented in TMRS' December 31, 1988 Comprehensive Annual Financial Report. Post Retirement Benefits 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 Alta Health Strategies, Inc. (see note 1). During fiscal year 1989, five retirees were eligible under this plan; however,claims filed by these retirees were not material. Fireman's Relief and Retirement Fund The City's General Fund is used to account for the accumulation of resources and the payment of annuities and related administrative costs of the Fireman's Relief and Retirement Fund,a closed, single- employer,defined contribution plan. Resources are contributed by the City 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. Total assets of the plan are included in the General Fund as a portion of the restricted cash balance. Ali qualitative and quantitative disclosures as required by the Governmental Accounting Standards Board are not made for the Fireman's Relief and Retirement Fund because such plan is not considered to be material. -51 - CITY OF COLLEGE STATION.TEXAS, NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 1989 10. SEGMENT INFORMATION OF ENTERPRISE FUNDS The City maintains two enterprise funds. Segment information for the year ended September 30, 1989, is as follows(amounts in thousands): Utility Sanitation Fund Fund Total Operating revenues: • Electrical system $27,921 $27,921 Water system 4,147 4,147 Sewer system 3,146 3,146 Sanitation system $1,776 1,776 Other 594 594 Depreciation 1,935 132 2,067 Operating income(loss)before operating transfers 7,494 35 7,529 Operating transfers, net (4,499) (152) (4,651) Net income(loss) 2,995 117) 2,878 Property and equipment: Additions 2,090 • 114 2,204 Retirements (45) (12) (57) Net working capital 8,709 257 8,996 Total assets 77,483 921 78,404 Bonds and other long-term liabilities- excluding current portion 28,118 28,118 Total equity 41,327 852 42,179 11. OPERATING TRANSFERS Individual fund operating transfers in and operating transfers out for fiscal 1989 were as follows: Operating Operating Transfers In Transfers Out General Fund $4,501,169 Special Revenue Fund: Hotel/Motel Tax $ 76,831 Internal Service Fund Debt Service Fund 226,831 Utility Fund 4,499,079 Sanitation Fund 152,090 Capital Projects Funds 150.000 150.000 Total $4.878.000 $4.878.000 -52- CITY OF COLLEGE STATION.TEXAS, NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 1989 12. COMMITMENTS AND CONTINGENCIES Minimum future lease payments and present value of the net minimum lease payments for capital leases for waterwell facilities are as follows: Year Ending September 30. Total 1990 $ 592,999 1991 592,999 1992 592,999 1993 592,999 1994 550,226 1995-2001 1.577.336 Total minimum lease payments 4,499,558 Less imputed interest (1.081.3661, Present value of net minimum lease payments $3.418.192 The City is contingently liable for lawsuits and other claims in the ordinary course of its operations. The settlement of such contingencies under the budgetary process would require appropriation of revenues yet to be realized and would not materially affect the financial position of the City at September 30, 1989. 13. RESERVATIONS OF FUND BALANCES Fund balances have been reserved at September 30, 1989,as follows: General Fund: Reserved for encumbrances $ 43,020 Reserved for prepaid costs 89,164 Reserved for fireman's relief and retirement fund 1,055 Special Revenue: Reserved for encumbrances 9,682 Reserved for prepaids 25 Debt Service-reserved for debt service 1,875,247 Capital Projects-reserved for encumbrances 6.972 Total $2.025.165 14. DEFICIT RETAINED EARNINGS The unreserved retained earnings for the Utility Billing Fund has a $33,602 deficit at September 30, 1989. This deficit can be attributed to the$74,724 in depreciation expense in Fiscal Year 1989 for which the City did not budget. -53- -54- COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS AND SCHEDULES -55- ��I GENERAL FUND To account for all financial resources traditionally associated with government which are not required to be accounted for in another fund. -57- CITY OF COLLEGE STATION.TEXAS, GENERAL FUND SCHEDULE OF REVENUES AND OTHER FINANCING SOURCES- BUDGET AND ACTUAL(BUDGETARY BASIS) FOR THE YEAR ENDED SEPTEMBER 30, 1989 Variance Favorable Budget Actual (Unfavorable) TAXES Current tax revenues $1,480,500 $1,518,718 $ 38,218 Delinquent ad valorem 64,000 30,343 (33,657) Tax penalty and Interest 6,000 17,824 11,824 Franchise 349,000 345,416 (3,584) Mixed drinks 72,000 74,379 2,378 General sales 3.650.000 3.750.936 100.936 Total taxes 5.621.500 5.737.615 116.115 LICENSES AND PERMITS Builder 60,000 49,138 (10,862) Electrical 12,000 9,007 (2,993) Plumbing 24,000 23,143 (857) Mixed drinks 12,000 13,637 1,637 Other 2,135 2.524 389 Total licenses and permits 110.135 97.449 (12.686) MUNICIPAL COURT FINES: 380.000 490.184 110.184 FEDERAL GRANTS 98.024 18.803 (79.2211 CHARGES FOR SERVICES Ambulance service 50,000 107,054 57,054 Parks concessions 63,400 65,284 1,884 Pool admissions 57,400 68,773 11,373 Sports Instruction 39,250 46,154 6,904 Sports programs 144,630 111,203 (33,427) Parks special events 13,000 12,622 (378) Other parks 10,800 12,698 1,898 Warrant services fees 19,000 14,875 (4,125) Miscellaneous 22.850 62.048 39.198 Total charges for services 420.330 500.711 80.381 PAVING ASSESSMENTS 61.800 21.722 (40.0781 USE OF MONEY AND PROPERTY Interest on investments 65,625 215,868 150,243 Rents and royalties 50,270 120,267 69,997 Other 2.188 2.188 Total use of money and property 115.895 338.323 222.428 (Continued) -58- CITY OF COLLEGE STATION.TEXAS GENERAL FUND SCHEDULE OF REVENUES AND OTHER FINANCING SOURCES- BUDGET AND ACTUAL(BUDGETARY BASIS) (Continued) FOR THE YEAR ENDED SEPTEMBER 30, 1989 Variance Favorable Budget Actual (Unfavorable) MISCELLANEOUS REVENUES: Reimbursed expenses $ 37,151 $ 37,151 Sale of cemetery plots and other property $ 3,750 9,645 5,895 Collection service fees 10,500 11,475 975 Other revenues 21.425 49.534 28.109 Total miscellaneous revenues 35.675 107.805 72.130 TOTAL REVENUES 6.843.359 7.312..612 469.253 OTHER FINANCING SOURCES: Payments in lieu of taxes 4,501,169 4,501,169 Sale of general fixed assets 19.049 19.049 Total other financing sources 4.501.169 4.520.218 19.049 TOTAL GENERAL FUND REVENUES $11.344.528 $11.832.830 $488.302 AND OTHER FINANCING SOURCES -59- CITY OF COLLEGE STATION.TEXAS GENERAL FUND SCHEDULE OF EXPENDITURES COMPARED WITH BUDGET(BUDGETARY BASIS) FOR THE YEAR ENDED SEPTEMBER 30, 1989 Variance Favorable Budget Actual (Unfavorable), GENERAL GOVERNMENT: City Secretary: Salaries and benefits $ 42,968 $ 42,968 Supplies 111 $ (111) Purchased property services 1,260 (1,260) Other purchased services Total city secretary 42,966 44.339 (1.3711 City Manager: Salaries and benefits 250,773 224,084 26,689 Supplies 10,300 9,507 793 Maintenance 2,480 3,155 (675) Purchased professional services 7,382 6,101 1,281 Purchased property services 15,391 15,164 227 Other purchased services 91,423 74,283 17,140 Capital outlay 14.904 13.758 1.146 Total city manager 392.653 346.052 46.601 Legal: Salaries and benefits 208,099 208,097 2 Supplies 12,240 12,173 67 Maintenance 3,868 3,868 Purchased professional services 15,386 15,386 Purchased property services 5,519 5,421 98 Other purchased services 30,537 30,704 (167) Capital outlay 1.028 1.028 Total legal 276.677 276.677 TOTAL GENERAL GOVERNMENT $,712.298 $667.068 $45.230 (Continued) -60- CITY OF COLLEGE STATION,TEXAS GENERAL FUND SCHEDULE OF EXPENDITURES COMPARED WITH BUDGET(BUDGETARY BASIS) (Cont'd) FOR THE YEAR ENDED SEPTEMBER 30, 1989 Variance Favorable Budget Actual !Unfavorable) FISCAL/HUMAN RESOURCES Personnel: Salaries and benefits $109,064 $109,916 $ (852) Supplies 8,350 6,064 2,286 Maintenance 632 294 338 Purchased professional services 11,814 10,415 1,399 Purchased property services 6,109 5,696 413 Other purchased services 16,514 13,924 2,590 Capital outlay 1.400 1.358 42 Total personnel 153.883 147.667 6.216 Fiscal Administration: Salaries and benefits 116,761 116,152 609 Supplies 3,277 3,276 1 Maintenance 150 66 84 Purchased professional services 3,000 3,000 Purchased property services 2,646 1,758 888 Other purchased services 10,570 9,797 773 Capital outlay-equipment 15.453 14.499 954 Total fiscal administration 151.857 148.548 3.309 Accounting: Salaries and benefits 211,112 210,967 145 Supplies 8,410 7,416 994 Maintenance 2,223 1,517 706 Purchased professional services 121,574 119,196 2,378 Purchased property services 11,327 9,510 1,817 Other purchased services 51,776 51,440 336 Capital outlay 1.405 1.364 41 Total accounting 407.827 401.410 6.417 Purchasing: Salaries and benefits 129,756 129,030 726 Supplies 3,702 4,357 (655) Maintenance 1,945 1,453 492 Purchased professional services 1,804 1,891 (87) Purchased property services 5224 5084 140 Other purchased services 15,812 16,389 (577) Capital outlay 1.175 1.175 Total purchasing 159.418 159.379 39 (Continued) -61 - CITY OF COLLEGE STATION,TEXAS GENERAL FUND SCHEDULE OF EXPENDITURES COMPARED WITH BUDGET(BUDGETARY BASIS) (Cont'd) FOR THE YEAR ENDED SEPTEMBER 30, 1989 Variance Favorable Budaet Actual (Unfavorable) Budget/Research: Salaries and benefits $ 99,613 $ 99,613 Supplies 1,250 1,399 $ (149) Maintenance 233 162 71 Purchased property services 1,583 1,558 25 Other pruchased services 8,324 8,272 52 Capital outlay 5.297 4.876 421 Total budget/research 116.300 115.880 420 Municipal Court: Salaries and benefits 114,546 114,545 1 Supplies 6,690 6,399 291 Maintenance 6,297 6,175 122 Purchased professional services 27,500 27,427 73 Purchased property services 10,304 10,304 Other purchased services 12,655 13,006 (351) Capital outlay 3.579 3,546 33 Total municipal court 181.571 181.402 169 TOTAL FISCAL/HUMAN RESOURCES 1.170.856 1.154.286 16.570 DEVELOPMENT SERVICES Development Services Administration: Salaries and benefits 118,155 115,184 2,971 Supplies 7,172 5,365 1,807 Maintenance 1,640 1,745 (105) Purchased professional services Purchased property services 3,460 3,009 451 Other purchased services 6,555 4,351 2,204 Capital outlay 7.100 6.688 412 Total development services administration 144.082 136.342 7.740 Engineering: Salaries and benefits 365,641 347,198 18,443 Supplies 9,972 10,615 (643) Maintenance 47,048 46,304 744 Purchased professional services 28,434 28,361 73 Purchased property services 8,144 7,054 1,090 Other purchased services 21,045 21,045 Capital outlay 36.740 31.163 5.577 Total engineering 517.024 491.740 25.284 (Continued) -62- CITY OF COLLEGE STATION.TEXAS GENERAL FUND SCHEDULE OF EXPENDITURES COMPARED WITH BUDGET(BUDGETARY BASIS) (Continued) FOR THE YEAR ENDED SEPTEMBER 30, 1989 Variance Favorable Budget Actual (Unfavorable) Planning: Salaries and benefits $ 476,102 $ 467,657 $ 8,445 Supplies 14,801 15,510 (709) Maintenance 4,823 4,285 538 Purchased professional services 7,151 6,663 488 Purchased property services 19,337 19,257 80 Other purchased services 42,474 42,484 (10) Capital outlay 25.777 26.993 (1,216) Total planning 590.465 582,849 7.616 TOTAL DEVELOPMENT SERVICES 1.251.571 1.210.931 40.640 SANITATION/FLEET SERVICE Fleet Administration: 91,666 91,665 1 Salaries and benefits 2,173 1,421 752 Maintenance 1,877 743 1,134 Purchased professional services Purchased property services 10,158 8,341 1,817 Other purchased services 6.074 5.954 120 Total sanitation/fleet administration 111.948 108.124 3.824 Fleet Operations: Salaries and benefits 267,759 256,306 11,453 Supplies '47,458 47,473 (15) Maintenance 7,589 7,588 1 Purchased professional services 75 (75) Purchased property services 2,300 2,115 185 Other purchased services 4,179 3,943 236 Capital outlay 1.110 946 164 Total fleet operations 330.395 318.446 11.949 TOTAL SANITATION/FLEET SERVICES 442.343 426.570 15.773 STREETS&DRAINAGE Streets&drainage administration: Salaries and benefits 61,213 59,894 1,319 Maintenance 523 1,351 (828) Purchased professional services 250 414 (164) Purchased property services 12,680 12,680 Other purchased services 1,282 1,230 52 Capital outlay 12.000 12,000 Total streets&drainage administration: 87.948 75.569 12.379 (Continued) -63- CITY OF COLLEGE STATION.TEXAS GENERAL FUND SCHEDULE OF EXPENDITURES COMPARED WITH BUDGET(BUDGETARY BASIS) (Cont'd) FOR THE YEAR ENDED SEPTEMBER 30, 1989 Variance Favorable Budget Actual (Unfavorable) Streets: Salaries and benefits $ 510,437 $482,717 $ 27,720 Maintenance 28,404 20,2426 8,162 Purchased professional services 288,612 236,591 52,021 • Purchased property services 5,092 5,097 (5) Other purchased services 1,553 21,640 (87) Capital outlay 125.800 125.891 (91) Total streets 979.898 892.178 87.720 TOTAL STREETS&DRAINAGE 1.067.846 967.747 100,099 COMMUNITY SERVICES ADMINISTRATION Salaries and benefits 33,520 33,520 Training 350 350 Total community services administration 33.870 33.870 POLICE Police Administration: Salaries and benefits 260,251 260,249 2 Supplies 8,223 6,769 1,454 Maintenance 2,750 927 1,823 Purchased professional services 2,000 156 1,844 Other purchased services 23,053 17,503 5,550 Capital outlay 24.000 22.925 1.075 Total police administration 320.277 308.529 11.748 Uniformed Bureau: Salaries and benefits 1,414,609 1,347,664 66,945 Supplies 89,459 55,892 33,567 Maintenance 29,471 24,252 5,219 Purchased professional services 22,327 20,070 2,257 Purchased property services Other purchased services 54,625 54,660 (35) Capital outlay 62.124 55.058 7.066 Total uniformed bureau 1.672.615 1.557.596 115.019 Criminal investigation: Salaries and benefits 333,152 311,280 21,872 Supplies 19,449 14,955 4,494 • Maintenance 5,005 5,528 (523) Purchased professional services 14,831 13,956 875 Purchased property services 653 1,050 (397) Other purchased services 16,761 15,678 1,083 Capital outlay 3.088 3.087 1 Total criminal investigation 392.939 365.534 27.405 (Continued) -64_ CITY OF COLLEGE STATION.TEXAS GENERAL FUND SCHEDULE OF EXPENDITURES COMPARED WITH BUDGET (BUDGETARY BASIS) (Cont'd) FOR THE YEAR ENDED SEPTEMBER 30, 1989 Variance Favorable Budget Actual (Unfavorable) Special Services: Salaries and benefits $ 248,571 $ 248,570 $ 1 Supplies 19,718 14,134 5,584 Maintenance 2,439 2,693 (254) Purchased professional services 37,200 37,149 51 Purchased property services 95 102 (7) Other purchased services 18,130 13,595 4,535 Capital outlay 704 704 Total special services 326.857 316.947 9,910 Technical Services: Salaries and benefits 481,467 459,786 21,681 Supplies 26,365 19,516 6,849 Maintenance 39,581 31,787 7,794 Purchased professional services 6,034 5,214 820 Purchased property services 98,873 81,505 17,368 Other purchased services 47,306 42,010 5,296 Capital outlay 309 309 Total technical services 699.935 640.127 59.808 TOTAL POLICE 3,412,623 3.188.733 223.890 FIRE: Fire Administration: Salaries and benefits 166,252 139,829 26,423 Supplies 3,565 1,937 1,628 Maintenance 3,064 2,495 569 Purchased property services 8,280 9,000 (720) Other purchased services 9,618 5,478 4,140 Capital outlay 982 702 280 Total fire administration 191.761 159.441 32.320 Fire Suppression: Salaries and benefits 1,647,083 1,617,078 30,005 Supplies 28,835 23,719 5,116 Maintenance 42,173 40,654 1,519 Purchased professional services 816 574 242 Purchased property services 29,585 29,228 357 Other purchased services 38,541 30,720 7,821 Capital outlay 57.803 57.088 715 Total fire operations 1.844.836 1.799.061 45.775 (Continued) -65- CITY OF COLLEGE STATION.TEXAS GENERAL FUND SCHEDULE OF EXPENDITURES COMPARED WITH BUDGET(BUDGETARY BASIS) (Cont'd) FOR THE YEAR ENDED SEPTEMBER 30, 1989 Variance Favorable Budget Actual (Unfavorable) Fire Prevention: Salaries and benefits $ 171,198 $ 171,197 $ 1 Supplies 8,159 7,562 597 Maintenance 2,527 2,193 334 Purchased professional services 200 100 100 Other purchased services 6.875 6.753 122 Total fire prevention 188.959 187.805 1.154 Emergency Medical Service: Salaries and benefits 363,806 360,797 3,009 Supplies 26,303 18,561 7,742 Maintenance 7,310 6,653 657 Purchased professional services 6,000 6,260 (260) Purchased property services 500 0 500 Other purchased services 22,223 14,773 7,450 Capital outlay 47.000 44.018 2.982 Total emergency medical service 473.142 451.062 22.080 TOTAL FiRE 2.698.698 2.597.369 101.329 PARKS AND RECREATION Parks Administration: Salaries and benefits 200,657 194,746 5,911 Supplies 5,462 6,033 (571) Maintenance 2,728 2,271 457 Purchased property services 3,955 3,389 566 Other purchased services 22,775 23,240 (465) Capital outlay 13.340 13.185 155 Total parks administration 248.917 242.864 6.053 Recreation: Salaries and benefits 214,342 214,218 124 Supplies 65,437 66,055 (618) Maintenance 4,848 3,104 1,744 Purchased professional services 86,538 85,038 1,500 Purchased property services 56,689 56,308 381 Other purchased services 27,409 26,407 1,002 Capital outlay 3.672 2.019 1.653 Total recreation 458.935 453.149 5.786 (Continued) -66- CITY OF COLLEGE STATION,TEXAS GENERAL FUND SCHEDULE OF EXPENDITURES COMPARED WITH BUDGET(BUDGETARY BASIS) (Cont'd) FOR THE YEAR ENDED SEPTEMBER 30, 1989 Variance Favorable Budget Actual (Unfavorable) Special Facilities Division: Salaries and benefits $ 361,688 $ 361,687 $ 1 Supplies 49,128 49,212 (84) Maintenance 28,983 28,983 Purchased professional services 8,094 6,438 1,656 Purchased property services 101,944 101,649 295 Other purchased services 42,065 42,065 Capital outlay 2.595 2.591 4 Total special facilities 594.497 592.625 1.872 Parks Maintenance: Salaries and benefits 444,924 418,444 26,480 Supplies 26,070 23,262 2,808 Maintenance 70,778 60,743 10,035 Purchased professional services 460 768 (308) Purchased property services 51,974 43,783 8,191 Other purchased services 11,956 12,340 (384) Capital outlay 56.480 53.468 3.012 Total parks maintenance 662.642 612.808 49.834 Forestry: Salaries and benefits 184,545 179,576 4,969 Supplies 5,823 4,332 1,491 Maintenance 15,411 10,716 4,695 Purchased professional services 0 25 (25) Purchased property services 3,092 2,956 136 Other purchased services 5.069 4.517 552 Total forestry 213.940 202.122 11.818 TOTAL PARKS AND RECREATION 2,178,931 2.103.568 75.363 MANAGEMENT SERVICES Management services administration: Salaries and Benefits 30.911 30.911 Total management services administration 30,911 30.911 Management information Services: Salaries and benefits 205,179 195,840 9,339 Supplies 2,398 2,560 (162) Maintenance 35,734 15,772 19,962 Purchased professional services Purchased property services 6,743 6,458 285 Other purchased services 8,636 6,466 2,170 Capital outlay 7.766 7.679 87 Total management Information services 266.456 234.775 31,681 (Continued) -67- CITY OF COLLEGE STATION.TEXAS GENERAL FUND SCHEDULE OF EXPENDITURES COMPARED WITH BUDGET(BUDGETARY BASIS) (Cont'd) FOR THE YEAR ENDED SEPTEMBER 30, 1989 Variance Favorable Budget Actual (Unfavorable) Public Relations: Salaries and benefits $ 92,310 $ 92,309 $ 1 Supplies 1,694 1,676 18 Maintenance 5,436 7,929 (2,493) Purchased property services 4,907 4,628 279 Capital outlay 3.959 3.881 78 Total public relations 108.306 110.423 (2.117) Energy Management Services: Salaries and benefits 133,802 131,211 2,591 Supplies 19,119 17,557 1,562 Maintenance 101,789 90,933 10,856 Purchased professional services 233,903 233,902 1 Purchased Property Services 24,195 23,595 600 Other purchased services 9,930 7,206 2,724 Capital outlay 20.067 19.169 898 Total management services 542.805 523.573 19.232 TOTAL MANAGEMENT SERVICES 948.478 899.682 48.796 NONDEPARTMENTAL: Special programs projects 64,950 57,867 7,083 Public agency funding 278,388 276,807 1,581 Expected expenditures savings (524,973) (524,973) Other 1,561 (1,561) Contingencies • 95,927 95,927 Total nondepartmental (85.7081 336.234 (421.9421 Subtotal 13,831,806 13,586,059 245,747 Less reimbursed administrative expenses (2.415.0311 (2.393.7751 (21,256) Total general fund expenditures $11.416.775 $11.192.284 $224.491 -68- 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. -69- CITY OF COLLEGE STATION.TEXAS ALL SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET SEPTEMBER 30, 1989 Hotel/ Community Motel Development Tax Total ASSETS Cash and investments $(29,813) $185,735 $155,922 Receivables: Accounts 2,944 2,944 Accrued interest 3,084 3,084 Loans 187,140 187,140 Grants 61,290 61,290 Other 1,254 1,254 Less allowance for uncollectible accounts (2,944) (2,944) Prepaid costs 25 25 TOTAL ASSETS $219.871 $188.844 $408.715 LIABILITIES AND FUND BALANCES LIABILITIES: Accounts payable $ 13,786 $ 2,358 $ 16,144 Accrued liabilities 2,033 416 2,449 Retainage payable 7,830 7,830 Refundable deposits 7,765 7,765 Deferred revenue-other 187.140 187.140 Total liabilities 210.789 10.539 221.328 FUND BALANCES: Reserved: Reserved for encumbrances 9,082 600 9,682 Reserved for prepaids 25 25 Unreserved -undesignated 177.680 177.680 Total fund balances 9.082 178.305 187.387 TOTAL LIABILITIES AND FUND BALANCES $219.871 $188.844 $408.715 -70- CITY OF COLLEGE STATION.TEXAS, ALL SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED SEPTEMBER 30, 1989 Hotel/ Community Motel Development Trx Total REVENUES: Taxes $708,828 $ 708,828 Grants $309,271 309,271 Rentals 44,394 44,394 Interest 2,454 14,179 16,633 Other 4,514 1,560 6.074 Total revenues 316.239 768.961 1.085.200 EXPENDITURES: Current: Public agency funding 94,722 314,500 409,222 Housing rehabilitation 187,745 187,745 Reimbursed administrative expenditures 86,135 152,059 238,194 Other 12,844 46,066 58,910 Capital outlay 52.785 52.785 Total expenditures 434.231 512.625 946,856 Excess(deficiency) of revenues over expenditures (117,992) 256,336 138,344 OTHER FINANCING USES Operating transfers out (76.831) (76.831) Excess(deficiency) of revenues over expenditures and other financing uses (117,992) 179,505 61,513 FUND BALANCES, OCTOBER 1, 1988 127.074 (1.200) 125.874 FUND BALANCES, SEPTEMBER 30, 1989 $ 9.082 $178.305 $ 187.387 -71 - CITY OF COLLEGE STATION.TEXAS COMMUNITY DEVELOPMENT FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(BUDGETARY BASIS) FOR THE YEAR ENDED SEPTEMBER 30, 1989 Variance Favorable Budget Actual (Unfavorable) REVENUES: Grants $1,106,160 $309,271 $ (796,889) Interest 2,454 2,454 Other 130.000 4.514 (125.486) Total revenues 1.236.161 316.239 (919.921) EXPENDITURES: ' Current: Public agency funding 149,722 94,722 55,000 Housing rehabilitation 455,550 187,745 267,805 Reimbursed administrative expenditures 92,000 86,135 5,865 Other 20,000 12,844 7,156 Capital outlay 518.888 52.785 466.103 Total expenditures 236.160 434.231 801.929 Excess(deficiency) of revenues over expenditures (117,992) (117,992) FUND BALANCE, OCTOBER 1, 1988 127.074 127.074 FUND BALANCE, • SEPTEMBER 30, 1989 $ 127.074 $ 9.082 $(117.992) -72- CITY OF COLLEGE STATION.TEXAS HOTEL/MOTEL TAX FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(BUDGETARY BASIS) FOR THE YEAR ENDED SEPTEMBER 30, 1989 Variance Favorable Budget Actual !Unfavorable). REVENUES: Taxes $680,000 $ 708,828 $ 28,828 Rentals 40,000 44,394 4,394 Interest 5,000 14,179 9,179 Other 1.560 1.560 Total revenues 725.000 768,961 43,961 EXPENDITURES: Current: Public agency funding 314,500 314,500 Reimbursed administrative expenditures 152,059 152,059 Other 143.785 46.066 97.719 Total expenditures 610.344 512,625 97.719 Excess of revenues over expenditures 114,656 256,336 141,680 OTHER FINANCING USES- Operating transfers out (76,831) (76,8311 Excess of revenues over expenditures and other financing uses 37,825 179,505 141,680 FUND BALANCE, OCTOBER 1, 1988 (1,200) (1,200) FUND BALANCE, SEPTEMBER 30, 1989 $ 36.625 $178.305 $141.680 -73- ( 11 -74- CAPITAL PROJECT FUNDS 1982 Bond Fund - 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 Fund - 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 Fund - 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. -75- CITY OF COLLEGE STATION.TEXAS ALL CAPITAL PROJECT FUNDS COMBINING BALANCE SHEET SEPTEMBER 30, 1989 1982 1982 Series I I 1984 ASSETS Bond Fund Bond Fund Bond Fund Total Cash and Investments $103,094 $2,456,423 $2,111,324 $ 4,670,841 Receivables: Accounts 73,299 73,299 Accrued interest 41,398 34,092 75,490 Less allowance for uncoliectible accounts (73.2991 (73.2991 TOTAL ASSETS $103.094 $2.497.821 $2.145.416 $4.746.331 LIABILITIES AND FUND EQUITY LIABILITIES: Accounts payable $ 62,497 $ 97,734 $ 160,231 Retainage payable $ 5.600 20.846 10.737 37.183 Total liabilities 5.600 83.343 108.471 197.414 FUND EQUITY: Reserved for encumbrances 6,472 500 6,972 Unreserved-designated for: Parks project 1,007 789,812 790,819 Street projects 64,543 787,520 857,066 1,709,129 General government projects 581,247 351,890 933,137 Drainage projects 633,078 633,078 Unreserved-undesignated 31.944 249.427 194.411 475.782 Total fund equity 97.494 2.414.478 2.036.945 4.548.917 TOTAL LIABILITIES AND FUND EQUITY $103.094 $2.497.821 $2.145.416 $1,746.331 -76- CITY OF COLLEGE STATION.TEXAS ALL CAPITAL PROJECT FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED SEPTEMBER 30, 1989 1982 1982 Series II 1984 Bond Fund Bond Fund Bond Fund Total REVENUES: Interest $ 7,474 $ 217,812 $ 201,596 $ 426,882 Miscellaneous 241 238 479 Total revenues 7.715 217.812 201.834 427.361 EXPENDITURES: Current: Reimbursed administrative expenditures 3,173 101,041 116,141 220,355 Other 241 88 329 Capital outlay 3.406 514.412 749.598 1.267.416 Total expenditures 6.579 615.694 865.827 1.488.100 Excess(deficiency) of revenues over expenditures 1,136 (397,882) (663,993) (1,060,739) OTHER FINANCING SOURCES (USES) - Operating transfers in 150,000 150,000 Operating transfers out (7829) (119.6321 22.539) (150.000) Total Other Financing Sources(Uses) (7829) 30.368 (22.539) Excess (deficiency) of revenues over expenditures and other financing sources(uses) (6,693) (367,514) (686,532) (1,060,779) FUND BALANCES, OCTOBER 1, 1988 104.187 2.781.992 2.723.477 5.609.656 FUND BALANCES, SEPTEMBER 30, 1989 $ 97.494 $2.414.478 $2.036.945 $4.548.917 -77- CITY OF COLLEGE STATION.TEXAS 1982 BOND FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL(BUDGETARY BASIS) FOR THE YEAR ENDED SEPTEMBER 30, 1989 Variance Favorable Budget Actual (Unfavorable) REVENUES: Interest $10,000 $ 7,474 $ (2,526) Miscellaneous 241 241 Total revenues 10.000 7.715 (2,285) EXPENDITURES: Reimbursed administrative expenditures 3,173 3,173 Capital outlay 3.406 (3.406) Total expenditures 3.173 6.579 (3.406). Excess(deficiency) of revenues over expenditures 6,827 1,136 (5,691) OTHER FINANCING USES Operating transfers out (7.829) (7,829) Excess(deficiency)of revenues over expenditures and other uses $j 1.002) $(6.693) $(5.691) -78- CITY OF COLLEGE STATION.TEXAS 1982 SERIES II BOND FUND STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(BUDGETARY BASIS) FOR THE YEAR ENDED SEPTEMBER 30, 1989 Variance Favorable Budget Actual (Unfavorable) REVENUES: Interest $130.000 $217.812 $ 87.812 Total revenues 130.000 217.812 87.812 EXPENDITURES: Reimbursed administrative expenditures 101,041 101,041 Other 241 (241) Capital Outlay 768.209 514.412 253.797 Total Expenditures 869.250 615,694 253.556 Excess(deficiency) of revenues over expenditures (739,350) (397,882) 341,368 OTHER FINANCING SOURCES (USES): Operating transfers In 150,000 150,000 Operating transfers out (119.632) J119.6321 Total other financing sources (uses) (119.632) 30.368 150,000 Excess(deficiency) of revenues over expenditures and other uses $(858.8821 $(367.514). $491.368 -79- CITY OF COLLEGE STATION.TEXAS 1984 BOND FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL(BUDGETARY BASIS) FOR THE YEAR ENDED SEPTEMBER 30, 1989 Variance Favorable Budget Actual (Unfavorable) REVENUES: Interest $ 140,000 $ 201,596 $ 61,596 Other 23$ 238 Total revenues 140.000 201.834 61.834 EXPENDITURES: Reimbursed administrative expenditures 131,628 116,141 15,487 Other 88 (88) Captal outlay 2.659.000 749.598 1.909.402 Total expenditures 2.790.627 865.827 1.924.800 Excess(deficiency) of revenues over expenditures (2,650,627) (663,993) 1,986,634 OTHER FINANCING USES: Operating transfers out (22.539) (22.539) Excess(deficiency) of revenues over expenditures and other uses $(2.673.1661 $(686.532). $1.986.634 -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, 1989 Utility Sanitation ASSETS Fund Fund Total CURRENT ASSETS: Cash and Investments $ 4,974,374 $ 87,486 $ 5,061,860 Receivables: Accounts 4,948,438 196,076 5,144,514 Accrued Interest 114,665 114,665 Grants 9,724 9,724 Other 206,029 206,029 Less allowance for uncoilectabie accounts (320,697) (3,292) (323,989) • Inventories 1,299,799 1,631 1,301,430 Prepaid costs 65.621 17.716 83.337 Total current assests 11.297.953 299.617 11.597.570 RESTRICTED ASSETS: Cash and Investments 12,284,237 12,284,237 Accrued Interest receivable 158.351 158.351 Total restricted assets 12.442.588 12.442.588 PROPERTY AND EQUIPMENT: 67,623,711 1,983,852 69,607,563 Less accumulated depreciation (14.162.463) (1.362.1461 (15.524.6091 Property, net 53.461.248 621.706 54.082.954 DEFERRED CHARGES 280.968 280.968 TOTAL ASSETS $77.482.757 $ 921.323 $78.404.080 _82_ Utility Sanitation LIABILITIES AND FUND EQUITY Fund Fund Total CURRENT LIABILITIES: Accounts payable $ 2,248,842 $ 23,416 $ 2,272,258 Accrued liabilities 214,036 19,793 233,829 Obligation under capital lease-current 347.231 347.231 Total current liabilities 2.810.109 43.209 2.853.318 PAYABLE FROM RESTRICTED ASSETS: Construction contracts and retainages payable 67,047 67,047 Accrued interest payable 351,070 351,070 Revenue bonds-current 2,465,000 2,465,000 General obligation-current 375,331 375,331 Certificates of obligation-current 26,200 26,200 Customers'meter deposits 1.935.830 1.935.830 Total liabilities payable from restricted assets 5.220.478 5.220,478 DEFERRED REVENUES 7.282 7.282 LONG-TERM DEBT: Revenue bonds 21,820,000 21,820,000 General obligation bonds 2,907,102 2,907,102 Certificates of obligation 235,800 235,800 Obligation under capital lease 3.070.961 3.070.961 Total long-term debt 28.033.863 28.033.863 ACCRUED VACATION LEAVE 84,275 25.720 109.995 TOTAL LIABILITIES 36.156,007 68.929 36.224.936 FUND EQUITY: Contributed capital 10,238,634 54,901 10,293,535 Retained earnings: Reserved for debt service 4,808,821 4,808,821 Reserved for capital projects 6,044,768 41,571 6,086,339 Unreserved 20.234.527 755.922 20.990.449 TOTAL FUND EQUITY 41.326,750 852.394 42.179.144 TOTAL LIABILITIES AND FUND EQUITY $77.482.757 $921.323 $78.404.080 -83- CITY OF COLLEGE STATION.TEXAS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS-ALL ENTERPRISE FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 1989 Utility Sanitation Fund Fund Total OPERATING REVENUES Electric $27,921,207 $27,921,207 Water 4,146,907 4,146,907 Sewer 3,146,128 3,146,128 Sanitation $1,776,033 1,776,033 Other 594.338 594.338 Total operating revenues 35.808.580 1.776.033 37.584.613 OPERATING EXPENSES Purchased power 17,954,520 17,954,520 Salaries and benefits 2,533,229 951,243 3,484,472 Supplies 256,398 70,153 326,551 Maintenance 395,035 115,122 510,157 Purchased professional services 309,801 39,378 349,179 Purchased property services 1,132,853 105,420 1,238,273 Other services 268,689 56,742 325,431 Reimbursed administrative expenses 2,422,028 267,438 2,689,466 Depreciation: Electrical system 682,315 682,315 Water system 727,504 727,504 Sewer system 525,492 525,492 Sanitation system 132,489 132,489 Total operating expenses 27.207.864 1.737.985 28.945.849 NET OPERATING INCOME 8.600.716 38.048 8.638.764 NONOPERATING REVENUES (EXPENSES) Interest earnings 1,638,504 1,449 1,639,953 Interest expense (2,668,400) (2,668,400) Other, net (76.256) (4,8931 (81.1491 Total nonoperating revenues(expenses) ..j1.106.1521 (3.444) (1.109.596) Income before operating transfers 7,494,564 34,604 7,529,168 Operating transfer out (4.499.0791 (152.090) (4.651.169). NET INCOME (LOSS) 2,995,485 (117,486) 2,877,999 TOTAL RETAINED EARNINGS, OCTOBER 1, 1988 28.092.630 914.980 29.007.610 TOTAL RETAINED EARNINGS, SEPTEMBER 30, 1989 S31.088.115 S 797.494 S31.885.609 -84- CITY OF COLLEGE STATION.TEXAS UTILITY FUND STATEMENT OF CASH FLOWS FOR THE YEAR ENDED SEPTEMBER 30, 1989 INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS Cash flows from operating activities: Cash received from customers $35,749,817 Cash payments to suppliers for goods and services (22,855,467) Cash payments to employees for services (2,442,109) Other operating revenues 594.338 Net cash provided by operating activities $11,046,579 Cash flows from noncapital financing activities: Operating transfers out to other funds (4,499,079) Cash received from other funds 19,818 Cash paid to other funds (1,976.1761 Net cash used for noncapital financing activities (6,455,437) Cash flows from capital and related financing activities: Acquistion and construction of capital assets (1,937,369) Principal paid on revenue bonds (2,545,000) Principal paid on general obligation bonds (378,679) Principal paid on certificates of obligation (26,200) Principal paid on obligation under capital lease (318,488) Interest paid on revenue bonds (2,213,370) Interest paid on general obligation bonds (177,574) interest paid on certificates of obligation (34,584) Interest paid on obligation under capital lease (274,512) Proceeds from sale of equipment 11,608 Cash received from capital grants 17,769 Cash received from special assessments 3,487 Net cash used for capital and related financing activities (7,862,912) Cash flows from Investing activities: Purchase of investments (66,512,291) Proceeds from sale and maturities of investment 66,160,644 Interest on investments 1.384.676 Net cash provided by investing activities 1,033.029 Net decrease in cash and cash equivalents (2,238,741) Cash and cash equivalents,October 1, 1988 19.497.352 Cash and cash equivalents,September 30, 1989 S17.258.611 Reconciliation of operating income to net cash provided by operating activities: Operating income $ 8,600,716 Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation 1,935,311 Provision for uncollectable accounts (96,425) Change in assets and liabilities: Decrease in accounts receivable 535,575 Increase in inventory (39,083) Increase in prepaid costs (9,872) increase in accounts payable 94,257 increase In accrued liabilities 20,270 increase In accrued vacation 5.830 Total adjustments 2.445.863 Net cash provided by operating activities S11.046.579 -85- CITY OF COLLEGE STATION.TEXAS, SANITATION FUND STATEMENT OF CASH FLOWS FOR THE YEAR ENDED SEPTEMBER 30,1989 INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS Cash flows from operating activities: Cash received from customers $1,730,623 Cash payments to suppliers for goods and services (684,136) Cash payments to employees for services _(_905.8951 Net cash provided by operating activities $ 140,592 Cash flows from noncapital financing activities: Cash received from other funds 226,524 Cash paid to other funds (67,359) Operating transfers out to other funds (152.0901 Net cash provided by noncapital financing activities 7,075 Cash flows from capital and related financing activities: Acquisition of capital assets (113,587) Proceeds from sale of equipment 721 Net cash used for capital and related financing activities (112,866) Cash flows from investing activities: Purchase of investments (336,416) Proceeds from sale and maturities of investment securities 298,398 Net cash used in investing activities (38.0181 Net decrease in cash and cash equivalents (3,217) Cash and cash equivalents, October 1, 1988 43.832 Cash and cash equivalents, September 30, 1989 $ 40.615 Reconciliation of operating incme to net cash provided by operating activities: Operating income $ 38,048 Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation $132,489 Provision for uncoliectabie accounts 1,322 Change in assets and liabilities: increase in accounts receivable (45,410) Decrease in inventories 5,626 Increase In prepaid costs (60) Increase In accounts payable 23,416 Decrease in accrued liabilities (19,526) Increase in accrued vacation 4.687 Total adjustments 102.544 Net cash provided by operating activities $ 140.592 -86- CITY OF COLLEGE STATION.TEXAS UTILITY FUND SCHEDULE OF REVENUES-BUDGET AND ACTUAL(BUDGETARY BASIS) FOR THE YEAR ENDED SEPTEMBER 30, 1989 Variance Favorable Budget Actual (Unfavorable) ELECTRIC OPERATING REVENUES Electric rates $29,507,000 $28,300,599 $(1,206,401) Forfeits,discounts, penalties 180,745 180,745 Electric property rentals 18,500 18,510 10 Miscellaneous service revenue 354.480 212.919 (141.5611 Total electric operating revenue 29.879.980 28.712.773 (1.167.2131 ELECTRIC NONOPERATING REVENUES Interest 457,800 675,384 217,584 Reimbursed expenses 11,000 6,142 (4,858) Miscellaneous nonoperating revenues 59.700 19.728 (39.972) Total electric nonoperating revenues 528.500 701.254 172.754 Electric operating transfers in 690.000 (690.000) Total electric revenue 31.098.480 29.414.027 (1.684.453) WATER OPERATING REVENUES Water sales 3,988,000 4,152,934 164,934 Water taps 40,000 44,800 4,800 Miscellaneous operating revenues 42.200 20.232 (21.9681 Total water operating revenue 4,070.200 4.217.966 147.766 WATER NONOPERATING REVENUE Interest 117,500 48,897 (68,603) Reimbursed expenses 1,291 1,291 Miscellaneous nonoperating revenue 500 37.051 36,551 Total water nonoperating revenue 118.000 87.239 (30.761) Water opreating transfers in 1.350.000 (1.350.000) Total water revenue 5.538.200 4.305.205 (1.232.995) SEWER OPERATING REVENUES Sewer service 3,064,000 3,121,797 57,797 Sewer taps 20,000 27,038 7,038 Miscellancous sewer operating revenues 25.320 12.139 (13.1811 Total sewer operating revenue 3.109.320 3.160,974 51.654 (Continued) -87- CITY OF COLLEGE STATION.TEXAS UTILITY FUND SCHEDULE OF REVENUES-BUDGET AND ACTUAL(BUDGETARY BASIS) (Cont'd) FOR THE YEAR ENDED SEPTEMBER 30, 1989 Variance Favorable Budget Actual (Unfavorable) SEWER NONOPERATING REVENUE Interest $ 32,700 $ 34,085 $ 1,385 Miscellaneous nonoperating revenue 2.211 2.211 Total sewer nonoperating revenue 32.700 36.296 3.596 Sewer operating transfers In 960.000 (960.000), Total sewer revenue 4.102.020 3.197.270 (904.7501 1985 I &S NONOPERATING REVENUES Interest on investments 177.047 177.047 Total 1985 I &S nonoperating revenues 177.047 177.047 1985 I&S operating transfers In 4.758.370 6.373.370 1.615.000 Total 1985 I &S revenues 4.758.370 6.550.417 1.792.047 URB 1982 NON-OPERATING REVENUES Interest 45.000 41.048 (3.952) Total URB 1982 non-operating revenues 45.000 41.048 (3.9521 Total URB 1982 revenues 45.000 41.048 (3.952) URB 1982-11 NON-OPERATING REVENUES Interest 50.000 57.449 7.449 Total URB 1982-II nonoperating revenues 50.000 57.449 7.449 Total URB 1982-I1 revenues 50.000 57.449 7.449 URB 1984 NONOPERATING REVENUES Interest 325,000 604,518 279,518 Grants 27,769 27,769 Other 4.104 4.104 Total URB 1984 nonoperating revenues 325.000 636.391 311.391 URB 1984 operating transfers in 106.150 106.150 Total URB 1984 revenues 325.000 742.541 417.541 Total utility revenues $45.917.070 $44.307.957 $(1.609.113). -88- CITY OF COLLEGE STATION.TEXAS UTILITY FUND SCHEDULE OF EXPENSES-BUDGET AND ACTUAL(BUDGETARY BASIS) FOR THE YEAR ENDED SEPTEMBER 30, 1989 Variance Favorable Budget Actual (Unfavorable) ELECTRIC Administration: Salaries and benefits $ 105,878 $ 96,857 $ 9,021 Supplies 3,654 3,554 100 Maintenance 1,267 864 403 Purchased professional services 77,112 69,876 7,236 Purchased property services 1,400 1,289 111 Other purchased services 27,562 19,072 8,490 Capital outlay 5.350 5.231 119 Total administration 222.223 196.743 25.480 Tech Services Division: Salaries and benefits 473,408 459,644 13,764 Supplies 21,389 18,443 2,946 Maintenance 80,600 75,606 4,994 Purchased professional services 37,034 32,488 4,546 Purchased property services 19,491,024 18,027,659 1,463,365 Other purchased services 109,673 95,640 14,033 Capital outlay 31.204 28.463 2.741 Total tech services division 20.244,332 18,737.943 1.506.389 Electric Transmission/Distribution Division: Salaries and benefits 700,803 569,804 130,999 Supplies 88,429 73,679 14,750 Maintenance 138,810 135,356 3,454 Purchased professional services 235,429 197,383 38,046 Purchased property services 18,671 16,022 2,649 Sundry 57,030 55,066 1,964 Capital outlay 163.945 156.397 7,548 Total elec.trans./distr.dlv. 1.403.117 1.203.707 199.410 Nondepartmentai: Payment In lieu of taxes 4,052,448 4,052,448 Special programs/projects 13,720 18,699 (4,979) URB 1985 interest payment 999,257 999,257 Contingency 33,054 33,054 Transfer out 918,201 919,300 (1,099) Reimbursed administrative expenses 548.613 549.257 (6441 Total nondepartmental 6.565.293 5.539.704 1.025.589 TOTAL ELECTRICAL 28.434.965 25.678.097 2.756.868 (Continued) -89- CITY OF COLLEGE STATION.TEXAS UTILITY FUND SCHEDULE OF EXPENSES-BUDGET AND ACTUAL(BUDGETARY BASIS) (Cont'd) FOR THE YEAR ENDED SEPTEMBER 30, 1989 Variance Favorable Budget Actual (Unfavorable) WATER Water Production: Salaries and benefits $ 290,453 $ 277,833 $ 12,620 Supplies 34,782 33,406 1,376 Maintenance 67,753 43,070 24,683 Purchased professional services 6,100 (2,423) 8,623 Purchased property services 955,183 955,182 1 Other purchased services 23,356 21,148 2,208 Capital outlay 17.300 14.394 2.906 Total water production 1.394.927 1.342.610 52.317 Water Distribution: Salaries and benefits 431,604 398,729 32,875 Supplies 56,222 43,219 13,003 Maintenance 114,682 87,456 27,226 Purchased professional services 12,365 6,972 5,393 Purchased property services 269,791 263,815 5,976 Other purchased services 43,842 42,576 1,266 Capital outlay 31.000 28.255 2.745 Total water distribution 959.506 871.022 88.484 Nondepartmental: Payment in lieu of taxes 949,172 949,172 Special programs/projects 1,290 2,196 (906) URB 1985 interest payment 2,284,018 2,284,018 Contingency 74,670 74,670 Operating transfers out 1,816,669 1,811,000 5,669 Inventory loss _ 5,185 (5,185) Reimbursed administrative expenses 265.458 265.908 (450) Total nondepartmental 5.391.277 3.033.461 2.357.816 TOTAL WATER $7.745.710 $5.247.093 $2.498.617 -90- CITY OF COLLEGE STATION.TEXAS UTILITY FUND SCHEDULE OF EXPENSES-BUDGET AND ACTUAL(BUDGETARY BASIS) (Cont'd) FOR THE YEAR ENDED SEPTEMBER 30, 1989 Variance Favorable Budget Actual (Unfavorable) SEWER Sewer Treatment: Salaries and benefits $ 455,744 $ 408,655 $ 47,089 Supplies 67,351 65,718 1,633 Maintenance 67,468 37,354 30,114 Purchased Professional Svcs. 23,025 20,460 2,565 Purchased Proprty Svcs. 483,001 367,292 115,709 Other Purchased Services 25,267 25,757 (490) Capital Outlay 95.550 82.243 13.307 Total sewer treatment 1.217.406 1.007,479 209.927 Sewer Collection: Salaries and benefits 352,732 315,879 36,853 Supplies 23,005 18,379 4,626 Maintenance 75,401 29,204 46,197 Purchased Professional Svcs. 25,000 2,646 22,354 Purchased Proprty Svcs. 20,646 20,698 (52) Other Purchased Services 11,623 9,430 2,193 Capital Outlay 66.800 48.013 18.787 Total sewer collection 575.207 444.249 130.958 Nondepartmental: Payment in lieu of taxes 591,433 591,433 Special programs/projects 1,505 2,412 (907) URB 1985 interest payment 1,475,095 1,475,095 Contingency 50,605 50,605 Operating transfers out 1,255,537 1,260,106 (4,569) Reimbursed administrative expenses 45.148 44.054 1.094 Total nondepartmental 3.419.323 1.898.005 1.521.318 TOTAL SEWER $5.211.936 $3.349.733 $1.862,203 See reconciliation to GAAP basis on page 95. -91 - CITY OF COLLEGE STATION.TEXAS UTILITY FUND SCHEDULE OF EXPENSES-BUDGET AND ACTUAL(BUDGETARY BASIS) (Cont'd) FOR THE YEAR ENDED SETEMBER 30, 1989 Variance Favorable Budget Actual (Unfavorable). UTILITY FUND URB 1982: Reimbursed administrative expenses $ 13,660 $ 13,660 Operating transfers out 2.150.000 2.150.000 Total URB 1982 2.163.660 2.163.660 URB 1982 II: Reimbursed administrative expenses 25,584 25,584 Operating transfers out 106,150 $(106,150) Contingency 250,000 250,000 Capital outlay 1.390.000 149.862 1.240.138 Total URB 1982 II 1.665.584 281.596 1.383.988 • URB 1984: Reimbursed administrative expenses 264,104 279,590 (15,486) Operating transfers out 1,000,000 1,000,000 Contingency 365,000 365,000 Capital outlay 6.615.000 1.497.630 5.117.370 Total URB 1984 8.244.104 2.777.220 6,466.884 1985 I &S: Principal payments 2,545,000 (2,545,000) Interest payments 2,213,370 (2,213,370) Total agents fees 2.793 (2,793) Total 1985 I &S 4.761.163 (4.761.1631 TOTAL UTILITY FUND $53.465.959 $44.258.562 S9.207.397 -92- CITY OF COLLEGE STATION.TEXAS SANITATION FUND SCHEDULE OF REVENUES-BUDGET AND ACTUAL(BUDGETARY BASIS) FOR THE YEAR ENDED SEPTEMBER 30, 1989 Variance Favorable Budget Actual (Unfavorable) OPERATING REVENUES: Residential collection $1,502,000 $1,213,987 $(288,013) Commercial collection 258,042 258,042 Drainage 140,000 153,517 13,517 Landfill 110,000 155,158 45,158 Dumpster sales 1,754 1,754 Other 12.000 6.078 (5.922), Total operating revenue 1,764,000 1.788.536 24.536 NONOPERATING REVENUES: Interest earnings 12,000 1,449 (10,551) Miscellaneous 6.688 6.688 Total nonoperating revenue 12.000 8.137 (3.8631 TOTAL REVENUES $1.776.000 $1.796.673 $ 20.673 See reconciliation to GAAP basis on page 95. -93- CITY OF COLLEGE STATION.TEXAS SANITATION FUND SCHEDULE OF EXPENSES-BUDGET AND ACTUAL(BUDGETARY BASIS) FOR THE YEAR ENDED SEPTEMBER 30, 1989 Variance Favorable Budaet Actual (Unfavorable) SOLID WASTE COLLECTION: Salaries and benefits $ 746,131 726,165 $19,966 • Supplies 28,802 25,700 3,102 Maintenance 55,495 52,098 3,397 Purchased property services 22,669 27,554 (4,885) Other purchased services 36,158 28,137 8,021 Capital outlay 116.000 109.659 6.341 Total solid waste collection 1,005.255 969.313 35.942 SOLID WASTE DISPOSAL: Salaries and benefits 133,040 133,039 1 Supplies 42,921 42,920 1 Maintenance 51,876 52,691 (815) Purchased professional services 60,000 39,378 20,622 Purchased property services 6,068 4,013 2,055 Other purchased services 17,098 17,070 28 Capital outlay 4.000 3.928 72 Total solid waste disposal 315.003 293.039 21.964 DRAINAGE: Salaries and benefits 87,352 87,352 Supplies 2,016 1,533 482 Maintenance 10,332 10,332 Purchased property services 749 749 Other purchased services 3.675 3.340 335 Total drainage 104.123 103.306 817 NONDEPARTMENTAL: Reimbursed administrative costs 293,079 293,079 Special programs/projects 4,485 6,538 (2,053) Public agency funding 8,000 8,000 Operating transfers out 126,449 126,449 Contingency 15,285 15,285 Expected expenditure savings (37,465) (37,465) Reserve for landfill closure 26,571 26,571 Reserve for future capital equipment 15.000 15.000 Total nondepartmental 451.404 434.066 17.338 TOTAL SANITATION FUND $1.875.785 $1.799.724 $76,061 See reconciliation to GAAP basis on page 95. -94- CITY OF COLLEGE STATION.TEXAS UTILITY FUND AND SANITATION FUND SCHEDULE FOR RECONCILIATION OF REVENUES AND EXPENSES (BUDGETARY BASIS) TO GAAP BASIS STATEMENT OF INCOME FOR THE YEAR ENDED SEPTEMBER 30, 1989 Utility Sanitation Fund Fund Total revenues per budget-Actual $44,307,957 $1,796,673 Less total expenses per budget-Actual 44.258.562 1.799.724 NET GAIN (LOSS), BUDGETARY BASIS 49,395 (3,051) ADD-Expenditures related to balance sheet: Prior year Interest accrual 382,710 Principal payment-debt service 2,949,879 Capital outlay 2,010,489 113,587 Capital lease payments 318,487 Year end encumbrances 47,363 1,800 Other 6,245 ADD-Unbudgeted revenue adjustments: Current year revenue accrual 2,096,833 87,790 DEDUCT-Unbudgeted expenses/revenue adjustments: Depreciation (1,935,311) (132,489) Prior year revenue accrual (2,457,921) (92,460) Current year Interest accrual (351,070) Allowance for uncollectibie accounts (36,274) (766) Accrued vacation leave (5,828) (4,687) Other (79.512) (87,210) NET INCOME(LOSS), GAAP BASIS $2.995.485 $ (117.4861 -95- ati INTERNAL SERVICE FUNDS, Employee Benefits - to account for self-insurance activity relating to administration of the City's health benefits plan. Utility Billing - to account for the billing and collection activities relating to the City's electric, water, and sewer utilities and residential and commercial garbage collection. Workers' Compensation - to account for self-insurance activity relating to administration of the City's workers' compensation plan. -97- QITY OF COLLEGE STATION.TEXAS ALL INTERNAL SERVICE FUNDS COMBINING BALANCE SHEET SEPTEMBER 30, 1989 Employee Utility Workers' ASSETS Benefits Billlna Compensation Total CURRENT ASSETS: Cash and Investments $111,711 $ 73,026 $268,548 $453,285 Receivables: Accounts 4,319 319 Accrued Interest 3,019 990 3,812 7,821 Prepaid Costs 4.500 950 39.000 44.450 Total Current Assets 119.549 74.966 311.360 505.875 PROPERTY AND EQUIPMENT: 389,048 389,048 Less Accumulated Depreciation (74,176) (74.176) Property,Net 314.872 314.872 TOTAL ASSETS $119 549 $389.838 $311.360 $820.747 LIABILITIES AND FUND EQUITY CURRENT LIABILITIES: Accounts Payable $ 105 $ 7,576 $ 96,727 $104,408 Accrued Liabilities 102.414 12.224 213.526 328.164 Total Current Liabilities 102.519 19.800 310.253 432.572 ACCRUED VACATION 22.503 22.503 TOTAL LIABILITIES 102.519 42.303 310.253 455.075 FUND EQUITY: Contributed Capital 381,137 381,137 Unreserved Retained Earnings(Deficit) 17.030 (33.6021 1.107 (15.4651 TOTAL FUND EQUITY 17.030 347.535 1.107 365.672 TOTAL LIABILITIES AND FUND EQUITY $119.549 $389.838 $311.360 $820.747 _98_ CITY OF COLLEGE STATION.TEXAS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS-ALL INTERNAL SERVICE FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 1989 Employee Utility Workers' Benefits Billing Compensation Total OPERATING REVENUES: Charges for services $884,860 $ 884,560 Premiums $ 695,648 $312,882 1,008,530 Flex benefits withheld 266.195 266.195 Total Operating Revenues 961.843 884.860 312.882 2.159.Q85 OPERATING EXPENSES: Salaries and benefits 640,642 640,642 uppiles 25,342 25,342 Maintenance 9,172 9,172 Purchased professional services 4 4 Purchased property services 20,352 20,352 Other services 65,334 65,334 Claims 900,522 393,527 1,294,049 Administration fee 36,993 12,479 49,472 Premiums 129,700 19,203 148,903 Flex benefits paid 266,533 266,533 Reimbursed administrative expenses 79,218 79,218 Other 251 7,303 7,554 Depreciation 74.724 74.724 Total operating expenses 1.333.999 922.091 425,209 2.681,299 NET OPERATING INCOME (LOSS) (372,156) (37,231) (112,327) (521,714) NONOPERATING REVENUES Interest earnings 28,568 1,001 14,413 43,982 Other 2.628 2.628 Total nonoperating revenues 28.568 3.629 14.413 46.610 NET LOSS (343,588) (33,602) (97,914) (475,104) TOTAL RETAINED EARNINGS, OCTOBER 1, 1988 360.618 99.021 459.639 TOTAL RETAINED EARNINGS (DEFICIT), SEPTEMBER 30, 1989 $ 17.030 $(33.602). $ 1.107 $ (15.465) -99- CITY OF COLLEGE STATION.TEXAS EMPLOYEE BENEFIT FUND STATEMENT OF CASH FLOWS FOR THE YEAR ENDED SEPTEMBER 30, 1989 INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS Cash flows from operating activities: Cash received from customers $1,075,164 Cash payments to suppliers for services (1.338.1371 Net cash used by operating activities $(262,973) Cash flows from noncapital financing activities: Cash received from other funds 147.838 Net cash provided by noncapital financing activities 147,838 Cash flows from investing activities: Purchase of investments (332,593) Proceeds from sale and maturities of investments 424,614 Interest on investments 25.696 Net cash provided by investing activities 117.717 Net increase in cash and cash equivalents 2,582 Cash and cash equivalents, October 1, 1988 51.151 Cash and cash equivalents, September 30, 1989 $ 53.733 Reconciliation of operating income to net cash provided by operating activites: Operating loss $(372,156) Adjustments to reconcile operating Income to net cash used by operating activities: Change in assets and liabilities: Decrease in accounts receivable 113,321 Decrease in prepaid costs 4,181 Increase in accounts payable 105 Decrease in accrued liabilities (8.424) Total adjustments 109.183 Net cash used by operating activities $ (262.9731 -100- CITY OF COLLEGE STATION.TEXAS UTILITY BILLING FUND SCHEDULE OF REVENUES AND EXPENSES-BUDGET AND ACTUAL(BUDGETARY BASIS) FOR THE YEAR ENDED SEPTEMBER 30, 1989 Variance Favorable Budget Actual (Unfavorable). OPERATING REVENUES: Charges for services $884.860 $884.860 Total operating revenues 884,860 884,860 OPERATING EXPENSES: Salaries and benefits 639,573 618,139 $21,434 Supplies 28,605 25,342 3,263 Maintenance 9,093 9,172 (79) Purchased professional services 600 4 596 Purchased property services 21,598 20,352 1,246 Other services 64,970 65,334 (364) Capital outlay 40.583 11.369 29.214 Total operating expenses 805.022 749.712 55.310 Net operating Income 79.838 135.148 55.310 NONOPERATING REVENUES (EXPENSES): Interest earnings 1,001 1,001 Other 20.753 (1.766) (22.5171 Total nonoperating revenue(expenses) 20.753 (7651 (21.5181 Income before operating transfers 100,591 134,383 33,792 Operating transfers out (79.2181 (79.2181 Net income $ 21.373 ,$ 55.165 $ 33.792 See reconciliation to GAAP basis on page 103. -101 - CITY OF COLLUE STATION.TEXAS UTILITY BILLING FUND STATEMENT OF CASH FLOWS FOR THE YEAR ENDED SEPTEMBER 30, 1989 INCREASE(DECREASE) IN CASH AND CASH EQUIVALENTS Cash flows from operating activities: Cash received from customers $884,860 Cash payments to suppliers for goods and services (200,099) Cash payments to employees for services (605.9151 Net cash provided by operating activities $78,846 Cash flows from investing activities: Purchase of Investments (272,148) Proceeds from sale and maturfties of investments 149,199 Interest on Investments 11 Net cash used by Investing activities (122.9381 Net increase in cash and cash equivalents 35,126 Cash and cash equivalents, October 1, 1988 Cash and cash equivalents,September 30, 1989 $35.126 Reconciliation of operating income to net cash provided by operating activities: Operating loss $(37,231) Adjustments to reconcile operating income to net cash used by operating activities: Depreciation 74,724 Change in assets and liabilities: Increase in prepaid costs (950) Increase in accounts payable 7,576 Increase in accrued liabilities 12,224 increase in accrued vacation 22.503 Total adjustments 116.077 Net cash provided by operating activities $78.846 -102- CITY OF COLLEGE STATION.TEXAS, UTILITY BILLING FUND SCHEDULE FOR RECONCILIATION OF REVENUES AND EXPENSES (BUDGETARY BASIS)TO GAAP BASIS STATEMENT OF INCOME FOR THE YEAR ENDED SEPTEMBER 30, 1989 Total revenues per budget-actual $885,861 Less total expenses per budget-actual 830.696 Net income, budget basis 55,165 Add-Expenditures related to balance sheet: Capital outlay 11,369 Add-Unbudgeted revenues: Transfer of assets from general fixed assets 2,028 Deduct-Unbudgeted expenses: Depreciation 74,724 Accrued vacation leave 22,503 Less on sale of fixed assets 4,937 Net loss, GAAP basis $(33,602) -103- CITY OF COLLEGE STATION.TEXAS WORKERS'COMPENSATION FUND STATEMENT OF CASH FLOWS FOR THE YEAR ENDED SEPTEMBER 30, 1989 INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS Cash flows from operating activities: Cash received from customers $312,882 Cash payments to suppliers for services (240.1661 Net cash provided by operating activities $ 72,716 Cash flows from noncapital financing activities: Cash received from other funds 73.238 Net cash provided by noncapital financing activities 73,238 Cash flows from investing activities: Purchase of investments (337,774) Proceeds from sale and maturities of investments 298,398 interest on investments 10.679 Net cash used by investing activities (28,697) Net increase in cash and cash equivalents 117,257 Cash and cash equivalents, October 1, 1988 11.915 Cash and cash equivalents,September 30, 1989 129.172 Reconciliation of operating income to net cash provided by operating activities: Operating loss $(112,327) Adjustments to reconcile operating income to net cash used by operating activities: Change in assets and liabilities: increase in prepaid costs (12,000) Increase in accounts payable 96,727 • Increase in accrued liabilities 100.316 Total adjustments 185.043 Net cash provided by operating activities $ 72.716 -104- GENERAL FIXED ASSETS ACCOUNT GROUP, To account for fixed assets not used in proprietary fund operations. -105- -106- CITY OF COLLEGE STATION.TEXAS GENERAL FIXED ASSETS ACCOUNT GROUP SCHEDULE OF GENERAL FIXED ASSETS-BY SOURCES SEPTEMBER 30, 1989 GENERAL FIXED ASSETS: Land $4,518,991 Buildings and Improvements 10,849,017 Machinery,tools and equipment 6,640,152 Motor vehicles 1,569,164 Parks and recreation equipment 5,675,264 Paving sidewalks and streets 11,875,514 Construction in progress 862,634 TOTAL GENERAL FIXED ASSETS $41.990.736 INVESTMENT IN GENERAL FIXED ASSETS FROM: Capital projects funds: General obligation bonds $24,639,114 Certificates of obligation 1,732,352 General fund revenues 5,855,037 Special revenue fund revenues: Federal grants 1,697,277 Other 1,066,821 Acquisitions prior to July 1, 1979-Source undetermined 7.000.135 TOTAL INVESTMENT IN GENERAL FIXED ASSETS $41.990.736 -107- CITY OF COLLEGE STATION.TEXAS GENERAL FIXED ASSET ACCOUNT GROUP SCHEDULE OF GENERAL FIXED ASSETS- BY FUNCTION AND ACTIVITY SEPTEMBER 30, 1989 Building and Total Land Improvements GENERAL FUND: Administration $ 551,661 $ 57,197 Finance 255,006 10,654 Public service 1,328,109 28,168 Police 680,786 1,972 Fire 746,008 1,649 Engineering 304,790 9,374 Parks 784,714 118,634 Computer project I 458,321 Computer project II 626,402 Parks escrow 119.240 Total general fund 5.855.037 227.648 SPECIAL REVENUE FUNDS: Federal grants 1,697,277 $ 13,082 221,859 Others 1.066.821 150.009 894.294 Total special revenue fund 2.764.098 163.091 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 3,902,862 376,857 1,237,290 1982 II bond funds 5,548,162 664,926 461,605 1984 bond funds 8.142.264 510.040 3.734.647 Total capital project funds 25.508.832 2.899.295 7.553.359 Acquisitions prior to July 1, 1979- Source undetermined 7.000.135 1.456.605 1.951.857 Total general fixed assets allocated to functions 41,128,102 10,849,017 Construction in progress 862.634 471.993 TOTAL GENERAL FIXED ASSETS $41.990.736 $4.518.991 $11.321.010 -108- Machinery, Parks and Paving Tools and Motor Recreation Sidewalks Equipment Vehicles Equipment and Street $ 335,619 $ 158,845 208,530 35,822 803,113 496,828 803,113 496,822 372,411 306,403 493,844 250,515 171,033 124,019 $ 364 294,258 187,737 $ 184,085 458,321 626,402 119.240 3.763.531 1.560.169 303.325 364 2,044 8,995 102,505 1,348,792 3.248 19.270 5.292 8.995 102.505 1.368.062 695,184 642,231 172,838 13,249 111,633 162,399 346,166 13,967 1,070,353 655,347 930 22,568 541,390 284,443 423,381 1,580,891 561,730 2,428,425 1,431,476 699.019 336.850 2.861.708 2.255.273 4.457.225 8.343,680 616.056 812.209 2.163.408 6,640,152 1,569,164 5,675,264 11,875,514 88.201 95.351 207.089 $6.728.353 S1.569.164 S5.770.615 S12.082.603 -109- CITY OF COLLEGE STATION.TEXAS GENERAL FUND FIXED ASSET GROUP SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS- BY FUNCTION AND ACTIVITY FOR THE YEAR ENDED SEPTEMBER 30, 1989 General General Fixed Fixed Function and Assets Assets Activity 9/30/88 Additions Retirements Transfers 9/30/89 GENERAL FUND: Administration $ 514,863 $ 37,783 $ 985 $ 551,661 Finance 325,491 24,338 4,800 $ (90,023) 255,006 Public service 1,225,944 126,390 24,225 1,328,109 Police 627,512 80,258 26,984 680,786 Fire 699,130 47,778 900 746,008 Engineering 294,486 43,375 33,071 304,790 Parks 754,846 70,366 40,498 784,714 Computer project I 556,151 46,892 (50,938) 458,321 Computer project II 342,894 523,684 (240,176) 626,402 Parks Escrow 119.240 119.240 Total general fund 5.326.953 1,073.212 178,355 (381.1371 5.855.037 SPECIAL REVENUE FUNDS: Federal grants 1,644,492 52,785 1,697,277 Other:Community Center 894,294 894,294 Other 172.527 172.527 Total special revenue funds 2.711.313 52.785 2.764.098 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 3,899,456 3,406 3,902,862 1982 II bond funds 5,430,411 117,751 5,548,162 1984 bond funds 7.718.350 423.914 8.142.264 Total capital project funds 24.963.761 545.071 25.508.832 (Continued) -110- CITY OF COLLEGE STATION.TEXAS GENERAL FUND FIXED ASSET GROUP SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS- BY FUNCTION AND ACTIVITY(Cont'd) FOR THE YEAR ENDED SEPTEMBER 30, 1989 General General Fixed Fixed Function and Assets Assets Activity 9/30/88 Additions Retirements Transfers 9/30/89 Acquisitions prior to July 1, 1979-Source undetermined $ 7.000.135 $ 7.000,135 Construction In progress 95.739 $2.007.674 $1.240.779 $(381.137), 862.634 TOTAL GENERAL FIXED ASSETS $40.112.265 $3.678.742 $1.419.134 $(381.137) $41.990.736 -111 - (' -112- STATISTICAL SECTION -113- 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 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 1989 4,335,002 3,188,081 2,588,909 1,392,230 (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. (3) Utility Billing established as internal service fund in fiscal year 1989, reducing reimbursed administrative expenditures in General Fund. Source: City of College Station -114- Reimbursed Parks& Capital Debt Administrative Recreation Outlay Service Expenditures Total $ 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 2,090,649 636,539 3,399,826 (2,393,775) (3) 15,237,461 -115- CITY OF COLLEGE STATION.TEXAS GENERAL REVENUES AND OTHER FINANCING SOURCES(1) LAST TEN FISCAL YEARS General Fiscal Property Franchise& Sales&Mixed Licenses& Fines& Year Franchise Tax Drink Tax Permits Forfeits 1980 $ 444,342 $ 115,810 $1,104,141 $ 80,599 $ 320,881 1981 513,114 135,823 1,596,132 219,785 406,636 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 1989 1,566,885 (6) 345,416 3,825,314 97,449 490,184 (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$100 valuation in 1987 to nine cents in 1988,with a corresponding decrease in debt service from thirty-six to twenty-nine cents. (6) Property tax allocated to the General Fund increased from nine cents per$100 valuation in 1988 to fourteen cents in 1989,with a corresponding decrease in debt service from twenty-nine to twenty-four cents. SOURCE: City of College Station -116- Charges Transfer From Other For From Enterprise Financing Property Services Funds(21 All Other Sources Tax Total $ 103,883 $1,005,571 $ 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) 16,290,820 500,710 4,501,169 593,764 23,520 2,845,775 (6) 15,190,535 -117- 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 Lew Collections Collected Collections 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 1989 4,262,125 4,122,235 96.72 202,588 Source: City of College Station -118- Total Collections Outstanding Delinquent Total As Percent Of Outstanding Taxes As A Percent Tax Collections Current Lew Delinquent Taxes Of Current Lew $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 4,324,823 101.47 420,113 9.86 -119- 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 1980 $266,536,120 $333,170,150 $27,368,820 $34,211,025 1981 288,809,588 361,011,985 28,266,830 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 1989 964,402,410 964,402,410 157,209,511 157,209,511 Source: Brazos County Appraisal District -120- Ratio of Total Assessed To Total Estimated Assessed Value Estimated Actual Value Actual Value $ 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 1,121,611,921 1,121,611,921 100 -121 - 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) 1980 $.39 $1.2900 $1.1500 $.10 $2.9300 1981 .39 1.4000 .3800 .10 2.2700 1982 .31 1.1800 .4000 .10 1.9900 1983 .31 .9000 .2700 .00 1.4800 1984 .31 .9700 .3100 .00 1.5900 1985 .36 .9500 .3296 .00 1.6396 1986 .38 .9780 .3253 .00 1.6833 1987 .38 1.0790 .4170 .00 1.8760 1988 .38 1.0790 .4170 .00 1.8760 1989 .38 1.2100 .3427 .00 1.9327 (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 - 122- Tax Ratios Tax Levies County/ City School County State(4) City School State 80% 80% 100% 0 $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 12,297,807 100 100 100 0 4,262,125 14,868,835 10,138,888 -123- 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 1980 $ 4,388 1981 $79,847 $44,740 56.03% 57,922 1982 394,287 348,236 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 1989 21,703 10.30 210,631 Source: City of College Station Finance Department -124- CITY OF COLLEGE STATION. TEXAS COMPUTATION OF LEGAL DEBT MARGIN SEPTEMBER 30, 1989 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. -125- 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 Population(1) Value Bonded Debt Cash Funds 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 1989 54,653 1,121,611,921 19,242,567 1,880,417 (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. -126- Ratio Of Net Bonded Net Bonded Net Bonded Debt Debt To Assessed Value Debt Per CaQ� $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 17,362,150 1.55 318 -127- CITY OF COLLEGE STATION.TEXAS SCHEDULE OF DIRECT AND ESTIMATED OVERLAPPING DEBT(1) SEPTEMBER 30, 1989 Net Debt Citv's Share Per* Taxing Body Amount As Of Percent Amount Capita ESTIMATED OVERLAPPING DEBT College Station I.S.D. $30,619,206(2) 7/31/89 79.23% $24,259,597 $444 Brazos County 10,947,244(3) 8/31/89 31.66 3,465,897 63 Bryan I.S.D. 21,766,675(3) 8/31/89 4.28 931.614 17 28,657,108 524 NET DIRECT DEBT City of College Station 17,362,150 9/30/89 100.00 17.362.150 318 NET DIRECT AND ESTIMATED OVERLAPPING DEBT $46.019.258 $842 *Population 54,653 (1) Source:City of College Station Finance Department (2) Source:College Station Independent School District (3) Source:Bryan Independent School District -128- 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 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) 1989 1,852,938 1,546,8138 3,399,826 11,837,635 28.72 (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 -129- 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 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 3,532,240 4.09 5,384,967 2.69 1989 37,584,613 26,878,049 10,706,564 3,377,186 3.17 5,090,875 2.10 (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 -130- CITY OF COLLEGE STATION.TEXAS TOTAL BANK DEPOSITS LAST TEN FISCAL YEARS Fiscal Year Amount 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) 1989 127,599,000 (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 Carolina 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 -131 - 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 1980 359 $25,716,938 238 $9,697,550 597 $5,414,488 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 1989 229 15,528,105 203 22,085,987 432 37,614,092 SOURCE: City of College Station Building Department -132- CITY OF COLLEGE STATION.TEXAS PRINCIPAL TAXPAYERS SEPTEMBER 30, 1989 Percent of 1989 Total Assessed Taxpayer Type of Business Assessed Valuation Valuation General Telephone Company Utility $ 30,968,963 2.76% Humana, Inc. Service 28,340,640 2.53 CBL Management Retail Mall 19,449,950 1.73 Westinghouse Electric Corp. Manufacturing 18,508,330 1.65 Southwest Savings Association Hotel 17,122,699 1.53 College Station Hotel Partners Hotel 11,116,740 .99 NCNB Texas National Real Estate 11,077,456 .99 Foley's Federated Department Store Retail 9,284,350 .83 San Antonio Savings Apartments 8,208,150 .73 Dillard Department Store Retail 7.626.715 .68 $ 161.703.993 14.42% SOURCE: Brazos County Appraisal District -133- CITY OF COLLEGE STATION.TEXAS MISCELLANEOUS STATISTICAL AND DEMOGRAPHIC DATA SEPTEMBER 30, 1989 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 Sq. 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 157.0 Miles Unpaved 2.5 Miles Miles of sidewalks 28.8 Miles Miles of sanitary sewer 192.0 Miles Fire Protection: Number of stations 2 Number of full-time employees 66 Police Protection: Number of employees(uniformed) 65 Number of employees(plain clothes, clerical) 25 Number of patrol units 15 One jail facility with a capacity of 20 Recreation: Number of playgrounds 19 Number of basketball courts 12 Number of swimming pools 3 Number of soccer fields 18 Number of softball/baseball fields 24 Number of tennis courts 13 Number of picnic shelters 18 Number of gyms 1 (Continued) -134- CITY OF COLLEGE STATION.TEXAS MISCELLANEOUS STATISTICAL AND DEMOGRAPHIC DATA(Continued) SEPTEMBER 30, 1989 Parks: • Facility Acres Facility Acres Anderson Park 8.94 Longmire Park 4.16 Bee Creek Park 43.50 Merry Oaks 4.60 Brentwood Park 7.70 Oaks Park 7.50 Brison Park 9.20 Parkway 1.90 Brother's Pond 16.12 Raintree 12.98 College Station Central Park 47.22 Richard Carter Park 7.14 Community Center 2.30 Sandstone 15.21 Cy Miller Park 2.50 Southwood Complex 44.65 Eastgate 1.00 Thomas Park 16.10 Emerald Forest Park 4.59 University Park Site 10.02 Fairview 1.80 Wayne Smith Park 2.46 Gabbard Park 10.67 Westchester 10.00 Georgia K. Fitch 11.30 Windwood 1.0 Lemon Tree Park 15.43 Woodcreek Park 6.60 Lick Creek Park 515.00 Woodway Park Site 2.0 Lincoln Center 8.00 Lion's Park 1.50 TOTAL ACREAGE 853.09 Utility Fund: Electric users(Units Served) 19,052 Water users(Units Served) 14,900 Average electrical consumption: 29,699,182KWH/Mo.during 1988-89 Average water consumption: 194,688MGW/Mo.during 1988-89 Number of Employees Electric 47 Water 32 Sewer 35 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) -135- CITY OF COLLEGE STATION.TEXAS MISCELLANEOUS STATISTICAL AND DEMOGRAPHIC DATA(Continued) SEPTEMBER 30, 1989 Sanitation Fund: Number of users(units served) 17,699 Landfill size 119.53 acres Methodology Curbside pickup using plastic bags Education: Attendance centers 7 Number of classrooms 350 Number of teachers 327 Number of students 5,246 Elections: Number of registered voters: Last general election 29,609 Last municipal election 32,347 Number of votes cast in: Last general election 18,195 Last municipal election 887 Percentage of registered voters voting in: Last general election 61% Last municipal election 2.7% Population: Census count 1989 54,653* 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 -136- CITY OF COLLEGE STATION.TEXAS MISCELLANEOUS STATISTICAL AND DEMOGRAPHIC DATA(Continued) SEPTEMBER 30, 1989 PROJECTED TEXAS A&M UNIVERSITY ENROLLMENT BY FALL SEMESTERS UNIVERSITY YEAR PROJECTIONS 1987 39,079(Actual) 1988 39,163 (Actual) 1989 40,492 (Actual) 1990 41,110 1991 40,970 1992 40,974 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 1980-1989 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 1989 51,154 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 1985-1989. -137- (1111 -138-