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HomeMy WebLinkAboutFY 2008-2009 -- Comprehensive Annual Financial ReportComprehensive Annual Financial Report City of College Station for fiscal year ended September 30, 2009 College Station, Texas Home of Texas A&M University® Home of Texas A&M University® Mission Statement On behalf of the citizens of College Station, home of Texas A&M University, we will promote and advance the community’s quality of life. www.cstx.gov CITY OF COLLEGE STATION, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2009 PREPARED BY THE CITY OF COLLEGE STATION FISCAL SERVICES DEPARTMENT JEFF KERSTEN, CHIEF FINANCIAL OFFICER JANET DUDDING, CPA, ASSISTANT DIRECTOR OF FISCAL SERVICES CITY OF COLLEGE STATION, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2009 Table of Contents Page i INTRODUCTORY SECTION Letter of Transmittal ................................................................................................................................vi GFOA Certificate of Achievement for Excellence in Financial Reporting..............................................xii Organizational Chart.............................................................................................................................xiii Principal City Officials ...........................................................................................................................xiv FINANCIAL SECTION Independent Auditors' Report .................................................................................................................1 Management’s Discussion and Analysis (Unaudited).............................................................................3 Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Assets..........................................................................................................23 Statement of Activities.............................................................................................................24 Fund Financial Statements: Balance Sheet – Governmental Funds ...................................................................................26 Reconciliation of Governmental Funds Balance Sheet to the Statement of Net Assets................................................................................................27 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds...............................................................................28 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities...............................29 Statement of Net Assets – Proprietary Funds.........................................................................30 Statement of Revenues, Expenses, and Changes in Net Assets – Proprietary Funds...........................................................................................31 Statement of Cash Flows – Proprietary Funds .......................................................................32 Notes to the Financial Statements.................................................................................................35 Required Supplementary Information: Schedule of Funding Progress – Texas Municipal Retirement System ........................................69 CITY OF COLLEGE STATION, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2009 Table of Contents Page ii Schedule of Revenues, Expenditures, and Changes in Fund Balances, Budget and Actual – General Fund...............................................................................70 Supplementary Information: Combining and Individual Fund Statements and Schedules: Combining Balance Sheet – General Fund(s)........................................................................74 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – General Fund(s)......................................................................................76 Combining Balance Sheet – Nonmajor Governmental Funds................................................80 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Governmental Funds..............................................................82 Schedules of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual: Special Revenue Funds: Court Technology Fee................................................................................................84 Court Security Fee......................................................................................................85 Juvenile Case Manager ..............................................................................................86 Police Seizure ............................................................................................................87 American Recovery and Reinvestment Act (ARRA)..................................................88 Red Light Camera ......................................................................................................89 Northgate Tax Increment Financing District...............................................................90 Memorial Cemetery....................................................................................................91 Cemetery Perpetual Care ..........................................................................................92 Memorial Cemetery Perpetual Care...........................................................................93 Hotel Occupancy Tax.................................................................................................94 Community Development ..........................................................................................95 Wolf Pen Creek Tax Increment Financing District .....................................................96 Convention Center......................................................................................................97 Parks Escrow..............................................................................................................98 CITY OF COLLEGE STATION, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2009 Table of Contents Page iii Business Park.............................................................................................................99 Drainage Projects.....................................................................................................100 Capital Projects Funds: General Government Projects ..................................................................................101 Parks and Recreation Projects .................................................................................102 Streets Projects........................................................................................................103 Debt Service....................................................................................................................104 Nonmajor Enterprise Funds: Combining Statement of Net Assets ...............................................................................106 Combining Statement of Revenues, Expenses, and Changes in Net Assets ............................................................................................................107 Combining Statement of Cash Flows .............................................................................108 Internal Service Funds: Combining Statement of Net Assets ...............................................................................110 Combining Statement of Revenues, Expenses, and Changes in Net Assets ............................................................................................................112 Combining Statement of Cash Flows .............................................................................114 STATISTICAL SECTION Net Assets by Component ..................................................................................................................119 Changes in Net Assets........................................................................................................................120 Program Revenues by Function/Program...........................................................................................122 Fund Balances, Governmental Funds ................................................................................................123 Changes in Fund Balances, Governmental Funds.............................................................................124 Tax Revenue by Source, Governmental Funds ..................................................................................126 Assessed Value and Estimated Actual Value of Taxable Property ....................................................127 Direct and Overlapping Property Tax Rates.......................................................................................128 Principal Property Taxpayers..............................................................................................................129 CITY OF COLLEGE STATION, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2009 Table of Contents Page iv Property Tax Levies and Collections ..................................................................................................130 Taxable Sales by Category.................................................................................................................131 Direct and Overlapping Sales Tax Rates............................................................................................132 Sales Tax Revenue Payers by Industry..............................................................................................133 Ratios of Outstanding Debt by Type...................................................................................................134 Ratios of Net General Bonded Debt Outstanding...............................................................................135 Direct and Overlapping Governmental Activities Debt........................................................................136 Legal Debt Margin Information............................................................................................................137 Pledged-Revenue Coverage...............................................................................................................138 Demographic and Economic Statistics ...............................................................................................139 Principal Area Employers....................................................................................................................140 Full-Time-Equivalent City Government Employees by Function/Program .........................................141 Operating Indicators by Function/Program.........................................................................................142 Capital Asset Statistics by Function/Program.....................................................................................144 v CITY OF COLLEGE STATION -............_ ...__________~~~_--------------.....­HOmeOfftxasA&M Univn;iry" April 19, 2010 Honorable Mayor, Members of the City Council, and Citizens of the City of College Station ' College Station, Texas The City Manager and the Fiscal Services Department are pleased to submit the Comprehensive . Annual Financial Report ,for the City of College Station, Texas (the "City") for the , fiscal year ended September 30,2009 . This report is published to provide to the City Council, City staff, our citizens, our bondholders and other interested parties detailed infonrnation concerning the financial condition and activities of the City government. Responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation , including all disclosures, rests with the City. To the best of our knowledge and belief, the data is accurate in all material aspects, and is organized in a manner designed to fairly present the financial position and results of operations of the City as measured by the financial activity of its various funds . We also believe that all disclosures necessary to enable the reader to gain the maximum understanding of the City's financial affairs have been included . Ingram, Wallis & Co, P.C " Certified Public Accountants, has issued an unqualified ("clean ") opinion on the city's financial statements for the year ended September 30, 2009 . The independent auditor's report is located at the front of the financial section of this report. Management's discussion and ariplysis (MD&A) immediately foll 'ows the independent auditor's report and provides ' a narrative introduction, overview, and analys is of the basic financial statements . MD&A complements this letter of transmittal and should be read in conjunction w ith it. CITY PROFILE Location The City of College Station , incorporated in 1938, is located in Brazos County in East Central Texas, approximately 140 miles north of th~ Gulf of Mexico, approximately 90 miles northwest bf Houston, approximately 165 miles south of Dallas and approximately 100 miles east of Aust in, in vi po. Box 996 0 1 101 TEXAS A VENUE COLLEG E STAT I O N • T EXAS • 77842 979 ,764 ,3507 www.cstx.gov vii an area referred to as the Brazos Valley. The City currently has a land area of 47.2 square miles and a current estimated population of 93,149 as of September 2009. The City has the power, by state statute, to extend its corporate limits by annexation, which it has done periodically. Structure The City of College Station is a home rule city operating under the Council-Manager form of government. The City Council is composed of a mayor and six council members, elected at large, who enact local laws, determine policies and adopt the annual budget. The City Manager is appointed by the City Council and is responsible for the daily management of the City. The Basic Financial Statements of the City include all government activities, organizations and functions for which the City is financially responsible as defined by the Governmental Accounting Standards Board. Based on these criteria, no other governmental organizations are included in this report. For additional information on the reporting entity, refer to Note I-A in the basic financial statements. Services Provided The City provides its citizens those services that have proven to be necessary and meaningful and which the City can provide at the least cost. Major services provided under general government and enterprise functions are: police and fire protection, emergency ambulance service, electric services, water and wastewater services, sanitation services, parks and recreation facilities, library services, street improvements and general administrative services. Internal services of the City, accounted for on a cost reimbursement basis, are fleet services, equipment replacement, risk management, employee health and disability coverage. Accounting System and Budgetary Control The City's accounting records for general governmental operations are maintained on a modified accrual basis, with the revenues recorded when available and measurable, and expenditures recorded when the services or goods are received and the liabilities incurred. Accounting records for the City's utilities and other proprietary activities are maintained on a full accrual basis with revenues recorded when earned and expenses recorded as goods or services are provided to the user. In developing and maintaining the City's accounting system, consideration is given to the adequacy of the internal control structure. Internal accounting controls are designed to provide reasonable, but not absolute, assurance regarding: (1) the safeguarding of assets against loss from unauthorized use or disposition, and (2) the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived, and (2) the evaluation of costs and benefits requires estimates and judgments by management. All internal accounting control evaluations occur within the above framework. We believe that the City's internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. The City charter provides that the City Council shall adopt the annual budget prepared by City Management. This budget is reviewed by the City Council and is formally adopted by the passage of a budget ordinance. The City Manager is authorized to transfer budgeted amounts between line items and departments within any fund; however, City Council must authorize transfers between General Fund departments and all increases in total spending in any fund. Budgetary control over spending is at the department level within the City's General Fund and at the individual fund appropriation in all other funds. The City's departments have direct access to review budgets as often as necessary. Monthly closing reports are prepared and reviewed by viii management showing revenues, expenditures, and balance sheets. Summarized financial reports and budget reports are provided to the City Council on a quarterly basis. FACTORS AFFECTING FINANCIAL CONDITION Economic Conditions The recent slowing in the national economy has begun to be felt in College Station. However some growth has continued to occur despite the slowdown. The concentration of stable employment sectors such as government and higher education contribute to the steady growth that College Station has experienced over the last several years. This growth provides some of the additional resources needed to maintain service levels to the citizens and visitors of College Station. Challenges remain as traditionally strong revenue streams slowed significantly. In fiscal year 2009, the unemployment rate was approximately 6 percent, the fourth lowest in the state. Overall, the state of Texas experienced an 8 percent unemployment rate. Sales tax collections in College Station fell for the first time in many years. This is consistent with the recent slowdown in the economy. In fiscal year 2009, sales tax revenue was down by 1.8 percent over fiscal year 2008 to $19,438,179 from 19,822,906 in 2008. Sales tax revenues are anticipated to be down in fiscal year 2010, and then begin to bottom out and see slight increases in future years. Despite the slowdown in the economy, College Station continued to see development. There were 536 new housing starts during 2009, essentially the same pace as last year. Total ad valorem assessed valuation increased by approximately $478 million or approximately 10.5 percent for fiscal year 2009 over fiscal year 2008. Commercial development continued to occur with new and redevelopment construction, including a few significant new developments breaking ground. The City of College Station’s major asset is being the home of Texas A&M University (TAMU). TAMU is located on an approximately 5,200 acre campus within the City. TAMU has a significant economic impact on the City, contributing over a billion dollars annually to the local economy. TAMU has consistently ranked among the top 50 universities in the United States. Each year, TAMU's approximately 2,500 faculty members conduct an estimated $450 million worth of sponsored research projects. Student enrollment at TAMU was 48,702 as of September 2009. TAMU employs more than 20,000 full-time and part-time staff. 2009 Major Accomplishments Below are highlight accomplishments for 2009. • Adoption of the Comprehensive Plan update: This update ensures that the City's goals and strategies are consistent with the community vision and sets the stage for ensuring that development activities and public expenditures further promote these goals. • Maintaining a Balanced Budget in Economic Slowdown: The City cut expenditures significantly in order to handle the reduction in revenue in fiscal year 2009. We continue to monitor the economy locally and anticipate that the effects of the slow economy will be with us for at least another year. • Chimney Hill / Convention Center: The City purchased the Chimney Hill Retail Plaza during 2009 and City staff worked with the current tenants while laying the groundwork for redevelopment of a portion of the property as the City’s planned Convention Center. The City is proceeding with an update to the Convention Center feasibility study and market analysis to be conducted by a qualified firm. It is anticipated that the results of the study will be completed and presented in 2010. ix • Red Light Camera Election and Removal: A special election was held in which the majority of voters elected to take down the City’s red light camera program. Despite legal challenges from outside parties, the system was removed. • Automated Street Light Monitoring System: In May, the Electric Department completed Phase 1 of the installation which included about 2,000 lights along major thoroughfares. The system provides street light outage information, system diagnostics, and controlling “on-off” times for the lights. Once installation is complete, this system will provide energy savings and efficiencies equivalent to taking almost 40 vehicles off the road per year. • New Equipment for the Fire Department: The Fire Department received several new Fire and Emergency Medical emergency response vehicles. The need for some of this equipment was generated by previous annexations; and these purchases fulfill commitments made at that time. The department received through the budget process (2) new Fire Pumpers, (1) new Fire Tanker, (1) new Grass Firefighting vehicle and (2) new Advanced Life Support Ambulances. • Environmental Awareness – One of the biggest achievements in this area was the award of $791,100 through the federal stimulus program. Projects to be funded through the Department of Energy grant include an extensive amount of park retrofits, more hybrid vehicles in our fleet and the hiring of a sustainability coordinator whose primary task will be to focus the City’s environmental programs. Other environmental activities accomplished this past year include: • Adoption of revised Building and Energy Codes – This update ensures that the City's codes remain current and that buildings constructed in College Station are as safe and energy efficient as possible. • Green Parks and Recreation – PARD began the effort of becoming one of the leading “Green Parks and Recreation Departments” in the state within the next three years, began design and project orientation for the use of more trees in City projects and developed a water conservation program for parks and other municipal facilities. • Water Reclamation/Irrigation – The City began design on its reclaimed water system to provide water from Carters Creek Wastewater Treatment Plant for irrigation at Veteran’s Park and Athletic Complex. • Water Auditor is Hired – The City hired a water auditor whose duties include contacting residences and businesses with high water usage to evaluate and suggest possible water conservation techniques. • Texas Avenue Corridor Progression Study – Early this year after the Texas Avenue improvements were complete, TxDOT returned the operation of the traffic signals back to the City. Staff worked to implement signal operations that improve traffic progression along the corridor, and travel times were reduced an average of 24%. • New Lighting Programs for Residential and Commercial Customers – College Station Utilities Energy Services launched two new lighting programs this year. The Compact Fluorescent Lighting (CFL) program assists residents in the purchase of CFLs by rebating $1.00 per purchase up to 4 annually. The Green Light Lighting Program rebates commercial customers for retrofitting existing lighting fixtures with efficient ballasts and lamps that can reduce lighting load by nearly one half. • Economic and Community Development • Planning and development of Lynntech Science Park. x • Facilitating a new public-private partnership, mixed-use development on Holleman Drive. • Developing a plan for the Medical Corridor/District study. • Expansion of the City’s New Construction Program into south College Station. • Capital Projects Completed in 2009 – 2009 saw the completion of many of the remaining projects from the 2003 bond issue. o Aggie Field of Honor/College Station Memorial Cemetery o College Park/Breezy Heights Neighborhood Utility and Street Rehabilitation Project o Expansion of William D. Fitch (Pebble Creek Parkway to Rock Prairie) o CSU Meeting and Training Building o Barron Road Phase 1 (State Highway 6 Frontage Road to Decatur) o Renovation of Municipal Court and Build-Out of Second Floor o Police Department Renovations o Water Well #7 o Extension of Eagle Avenue prior to the opening of Creekview Elementary School o Improvements to the Patricia Street Promenade:  constructing a new public restroom  reconstructing the dumpster enclosure  improving the lighting and parking in the area o Northgate Video Surveillance Pilot Program o Wireless in City Facilities beginning with City Hall o Edelweiss Gartens Park, University Park and Woodland Hills Park o Adamson Lagoon Bathhouse • Projects in Design or under Construction in 2010 – Many projects approved with the 2008 bond election will begin the design process this coming year. o Holleman Drive Extension o South Knoll/The Glade Water/Wastewater Rehabilitation o Fire Station 6 o Tauber and Stasney Street Rehabilitation o Barron Road Widening Phase 2 o Highway 6/University Beautification Project OTHER INFORMATION Independent Audit Section 37 of the City's Charter requires that not less than thirty (30) days prior to the end of each fiscal year, the City Council shall designate a qualified public accountant or accountants who, as of the end of the fiscal year, shall make an independent audit of accounts and other evidences of financial transactions of the city government and shall submit the report to the City Council. Such accountants shall have no personal interest, direct or indirect, in the fiscal affairs of the city government. They shall not maintain any account or record of the city business, but, within specifications approved by the City Council, shall post-audit the books and documents kept by the Department of Fiscal Services and any separate or subordinate accounts kept by any other office, department or agency of the city government. The City of College Station has engaged Ingram, Wallis & Company, Certified Public Accountants, of Bryan, Texas to perform the audit, and their opinion has been included in this report. It should be noted that the auditors included all funds in their audit, performed their audit in accordance with U.S. generally accepted auditing standards, and concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the City of College Station's financial statements for the fiscal year ended September 30, 2009 are fairly Certificate of Achievement for Excellence in Financial Reporting Presented to City of College Statiol1 Texas For its Comprehensive Annual Financial Report for the Fiscal Year Ended September 30, 2008 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and fmancial reporting. President Executive Director xii CITIZENS OF COLLEGE STATION MAYOR AND COUNCIL CITY SECRETARY MUNICIPAL JUDGES CITY ATTORNEY CITY MANAGER FIRE POLICE PLANNING & DEVELOPMENT SERVICES PARKS & RECREATION PUBLIC WORKS WATER SERVICES FISCAL SERVICES ADMINISTRATION SUPPRESSION PREVENTION EMERGENCY MEDICAL SERVICES (EMS) ADMINISTRATION UNIFORM PATROL CRIMINAL INVESTIGATIONS SPECIAL SERVICES QUARTERMASTER COMMUNICATIONS / JAIL RECRUITING/ TRAINING INFORMATION SERVICES PLANNING ADMINISTRATION MAPPING COORDINATION DEVELOPMENT COORDINATION BUILDING INSPECTION ADMINISTRATION STREETS DRAINAGE FLEET TRAFFIC SIGNS/SIGNALS SANITATION ENGINEERING PLANT OPERATIONS INTERNAL AUDITOR PARKING FACILITIES MAINTENANCE FIELD OPERATIONS EMERGENCY MANAGEMENT ASSISTANT CITY MANAGER ASSISTANT CITY MANAGER ECONOMIC DEVELOPMENTCOMMUNITY DEVELOPMENT ELECTRIC UTILITY APPOINTED BOARDS AND COMMISSIONS BVSWMA GIS & ASSET MANAGEMENT ENVIROMENTAL SERVICES WATER RESOURCES INFORMATION TECHNOLOGY COMMUNICATION SERVICES ADMINISTRATION E-GOVERNMENT GEOGRAPHIC INFORMATION SERVICESMANAGEMENT INFORMATION SYSTEMS MAIL ADMINISTRATION RECREATION SPECIAL FACILITIES PARKS OPERATIONS PARKS OPERATIONS FORESTRY FORESTRY SPECIAL FACILITIES LIBRARY ASSISTANT DIRECTOR TREASURER ASSISTANT DIRECTOR ACCOUNTING OFFICE OF BUDGET & STRATEGIC PLANNING MUNICIPAL COURT PURCHASING UTILITY CUSTOMER SERVICE CAPITAL IMPROVEMENT PROJECTS PUBLIC COMMUNICATION AND MARKETING HUMAN RESOURCES ADMINISTRATION CODE ENFORCEMENT xiii City of College Station, Texas Fiscal Year 2009 Principal City Officials Elected Officials City Administration City Manager..........................................................................................................................................................Glenn Brown  Assistant City Manager .......................................................................................................................................... Kathy Merrill  Assistant City Manager ..........................................................................................................................................David Neeley  Chief Financial Officer.............................................................................................................................................. Jeff Kersten  Director of Water Services Department .............................................................................................................David  Coleman  Director of Electric Utility......................................................................................................................................David Massey  Interim Chief of Police............................................................................................................................................Jeffrey Capps  Fire Chief............................................................................................................................................................. Robert B. Alley  Director of Public Works...........................................................................................................................................Mark Smith  Director of Capital Projects.................................................................................................................................Charles Gilman  Director of Parks and Recreation...................................................................................................................Ma rco A. Cisneros  Director of Planning and Development Services .................................................................................................Bob  Cowell, Jr.  Director of Information Technology .......................................................................................................................... Ben Roper   Director of Public Communications..............................................................................................................................Jay Socol  Director of Human Resources..................................................................................................................................Alison Pond  Director of Economic and Community Development ..............................................................................................David  Gwin  City Attorney....................................................................................................................................................Harvey Cargill, Jr.  City Secretary.....................................................................................................................................................Connie L. Hooks  Internal Auditor.............................................................................................................................................................Ty Elliott  Dennis  Maloney  Council ‐ Place 3  Katy‐Marie  Lyles  Council ‐ Place 4  Larry  Stewart  Council ‐ Place 5  Ben White  Mayor  David  Ruesink  Mayor Pro Tem  John  Crompton  Council ‐ Place 1  James  Massey  Council ‐ Place 2  xiv xv Management's Discussion and Analysis For the Fiscal Year Ended September 30, 2009 (Unaudited) City of College Station, Texas This section of the City of College Station's (the “City”) Comprehensive Annual Financial Report presents a narrative overview and analysis of the financial activities of the City for the fiscal year ended September 30, 2009. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal. FINANCIAL HIGHLIGHTS  The assets of the City exceeded its liabilities at the close of the most recent fiscal year by $387,464,497 (net assets). Of this amount, $98,480,776 (unrestricted net assets) may be used to meet the government's ongoing obligations to citizens and creditors.  The City's total net assets increased by $15,852,406 during the fiscal year.  At the close of the current fiscal year, the City's governmental funds reported combined ending fund balances of $53,394,991, a decrease of $19,512,525 when compared to the prior year.  Approximately 15.2 percent of the combined governmental funds ending fund balance, or $8,102,443 is available for spending at the City's discretion (unassigned fund balance).  During fiscal year 2009, the City's total debt increased by approximately $34,650,000. Key factors in this increase were the issuance of $3,335,000 in General Obligation Improvement Bonds and $31,315,000 in business-purpose and governmental Certificates of Obligation. OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the City's basic financial statements. The City's basic financial statements are comprised of three components: (1) Government-wide financial statements (2) Fund financial statements (3) Notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. The following diagram illustrates the relationship between the different components of this report: College Station Fire Station #3 3 Management's Discussion and Analysis For the Fiscal Year Ended September 30, 2009 (Unaudited) City of College Station, Texas Relationship Between Comprehensive Annual Financial Report (CAFR) and Basic Financial Statements and Required Supplementary Information (RSI) General information on the government Introductory structure, services, and environment Section Pages vi-xiv Management's Discussion and Analysis Pages 3-22 Government-Wide Financial Statements Basic Pages 23-25 Financial Governmental Fund Financial Statements Statements Pages 26-29 And Proprietary Fund Financial Statements Financial RSI Pages 30-33 Section Notes to the Financial Statements Pages 35-68 Additional Required Supplementary Information Pages 69-71 Information on individual funds and other supplementary information not required by GAAP Pages 73-116 + Trend Data and Non-financial Data Pages 117-144 Statistical Section 4 Management's Discussion and Analysis For the Fiscal Year Ended September 30, 2009 (Unaudited) City of College Station, Texas Government-Wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the City's finances, in a manner similar to a private-sector business. The statement of net assets presents information on all of the City's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether or not the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the City's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods, such as revenues pertaining to uncollected taxes and expenses pertaining to earned but unused vacation. Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, fiscal services, police, information technology, planning and development, fire, municipal services, streets, drainage, traffic, parks and recreation, and citizen and neighborhood resources. The business-type activities of the City include electric, water, wastewater, sanitation, and the northgate parking garage. The government-wide financial statements can be found on pages 23-25. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into governmental funds and proprietary funds. Governmental Funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near- term inflows and outflows of spendable resources as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in determining what financial resources are available in the near future to finance the City's programs. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. 5 Management's Discussion and Analysis For the Fiscal Year Ended September 30, 2009 (Unaudited) City of College Station, Texas The City maintains several individual governmental funds organized according to their type (special revenue, debt service, and capital projects). Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, Debt Service Fund, and Streets Projects Fund, all of which are considered to be major funds. Data from the remaining governmental funds are combined into a single, aggregated presentation. Individual fund data for each of the non-major governmental funds is provided in the form of combining statements elsewhere in this report. The governmental fund financial statements can be found on pages 26- 29. The City adopts an annual appropriated budget for its General Fund, Debt Service Fund, Special Revenue Funds, and Capital Projects Funds. A budgetary comparison statement has been provided for the General Fund, Debt Service Fund, Special Revenue Funds, and Capital Projects Funds to demonstrate compliance with their budgets. Proprietary Funds Proprietary funds are generally used to account for services for which the City charges customers--either outside customers or internal units or departments of the City. Proprietary funds provide the same type of information as shown in the government-wide financial statements, only in more detail. The City maintains the following two types of proprietary funds: Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for the operations of the electric, water, wastewater, sanitation, and parking activities of the City. The Electric, Water, and Wastewater funds are considered to be major funds of the City, while the remaining funds (Sanitation and Northgate Parking Garage) are presented in aggregate as non-major enterprise funds. Individual fund data for the non-major enterprise funds can be found in the form of combining statements elsewhere in this report. Internal service funds are used to report activities that provide supplies and services for certain City programs and activities. The City uses internal service funds to account for communication, fleet maintenance and utility customer services. It also uses internal service funds to account for equipment replacement; employee benefits; and unemployment, workers' compensation, and property and casualty insurance. All of these services, with the exception of utility customer service, predominantly benefit governmental rather than business-type functions and have been included within governmental activities in the government-wide financial statements. The Utility Customer Service Fund has been included with the business-type activities in the government-wide financial statements. The internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report. The proprietary fund financial statements can be found on pages 30-33. Notes to the Financial Statements The notes to the financial statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. 6 Management's Discussion and Analysis For the Fiscal Year Ended September 30, 2009 (Unaudited) City of College Station, Texas Required Supplementary Information In addition to the basic financial statements and accompanying notes, this report presents on pages 69-71, certain required supplementary information concerning the City's progress in funding its obligation to provide pension benefits to its employees and the General Fund budget- to-actual comparison. Combining Statements The combining statements referred to earlier in connection with the non-major governmental funds, the non-major enterprise funds, and the internal service funds are presented on pages 73- 116 immediately following the required supplementary information. GOVERNMENT-WIDE FINANCIAL ANALYSIS As noted earlier, net assets may serve as a useful indicator of a government's financial position. For the City, assets exceeded liabilities by $387,464,497 at the close of the most recent fiscal year. The largest portion of the City's net assets (57 percent) reflects its investment of $220,400,862 in capital assets (e.g., land, buildings, and equipment), less any related outstanding debt used to acquire those assets. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be liquidated for these liabilities. Governmental Activities Business-Type Activities Total 2009 2008 2009 2008 2009 2008 Assets Current and Other Assets 84,010,939$ 92,449,808$ 89,680,799$ 71,448,999$ 173,691,738$ 163,898,807$ Capital Assets 214,833,592 199,832,191 273,364,671 259,314,070 488,198,263 459,146,261 Total Assets 298,844,531 292,281,999 363,045,470 330,763,069 661,890,001 623,045,068 Liabilities Long-Term Liabilities Outstanding 87,021,728 103,022,575 146,555,278 123,854,880 233,577,006 226,877,455 Other Liabilities 22,502,540 8,262,912 18,345,958 16,292,610 40,848,498 24,555,522 Total Liabilities 109,524,268 111,285,487 164,901,236 140,147,490 274,425,504 251,432,977 Net Assets Invested in Capital Assets, Net of Related Debt 89,475,869 114,935,845 130,924,995 145,066,758 220,400,864 260,002,603 Restricted 48,296,712 6,357,013 20,286,147 1,590,977 68,582,859 7,947,990 Unrestricted 51,547,682 59,703,654 46,933,092 43,957,844 98,480,774 103,661,498 Total Net Assets 189,320,263$ 180,996,512$ 198,144,234$ 190,615,579$ 387,464,497$ 371,612,091$ An additional portion of the City's net assets, $68,582,859 (17.7 percent) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net assets, $98,480,776 (25.4 percent) may be used to meet the government's ongoing obligations to citizens and creditors. At the end of the current fiscal year, the City was 7 Management's Discussion and Analysis For the Fiscal Year Ended September 30, 2009 (Unaudited) City of College Station, Texas able to report positive balances in all three categories of net assets, both for the government as a whole, as well as for the business-type activities. The same situation held true for the prior fiscal year. The City's net assets increased by $15,852,406 as a result of fiscal year 2009 operations. The increase is primarily attributable to increases in ongoing revenues and relatively stable expenses. The following table provides a summary of the City's operations for the year ended September 30, 2009 and highlights key elements of the increase in the City's net assets: Changes in Net Assets For the Fiscal Year Ended September 30, 2009 Governmental Activities Business-Type Activities Total Revenues 2009 2008 2009 2008 2009 2008 Program Revenues: Charges for Services 13,625,722$ 11,668,838$ 120,852,266$ 110,299,679$ 134,477,988$ 121,968,517$ Operating Grants and Contributions 1,896,623 1,735,170 17,792 - 1,914,415 1,735,170 Capital Grants and Contributions 2,644,629 3,055,501 6,846,033 5,349,125 9,490,662 8,404,626 General Revenues: Property Taxes 22,769,699 20,670,112 - - 22,769,699 20,670,112 Sales and Mixed Beverage Taxes 19,873,213 20,241,973 - - 19,873,213 20,241,973 Other Taxes 5,792,267 5,676,291 - - 5,792,267 5,676,291 Interest and Investment Income 1,413,431 3,385,844 654,882 1,330,785 2,068,313 4,716,629 Total Revenues 68,015,584 66,433,729 128,370,973 116,979,589 196,386,557 183,413,318 Expenses General Government 8,631,908 8,551,304 - - 8,631,908 8,551,304 Fiscal Services 3,821,996 2,977,362 - - 3,821,996 2,977,362 Police 13,945,079 13,395,874 - - 13,945,079 13,395,874 Fire 11,778,585 11,359,260 - - 11,778,585 11,359,260 Planning and Development Services 2,823,296 1,910,359 - - 2,823,296 1,910,359 Public Works 16,804,436 9,467,081 - - 16,804,436 9,467,081 Capital Projects 476,462 719,391 - - 476,462 719,391 Parks and Recreation 10,136,521 10,385,095 - - 10,136,521 10,385,095 Library 1,052,838 - - - 1,052,838 - Information Technology 3,471,714 2,749,327 - - 3,471,714 2,749,327 Interest on Long Term Debt 4,135,146 3,860,801 - - 4,135,146 3,860,801 Unallocated Depreciation 789,074 667,890 - - 789,074 667,890 Electric Utility - - 77,441,351 70,485,982 77,441,351 70,485,982 Water Utility - - 9,287,343 8,706,415 9,287,343 8,706,415 Wastewater Utility - - 9,829,813 9,159,176 9,829,813 9,159,176 Sanitation Services - - 5,776,002 6,244,639 5,776,002 6,244,639 Parking Operations - - 909,167 668,237 909,167 668,237 Total Expenses 77,867,055 66,043,744 103,243,676 95,264,449 181,110,731 161,308,193 Increase in Net Assets Before Transfers (9,851,471) 389,985 25,127,297 21,715,140 15,275,826 22,105,125 Transfers Net 12,778,642 7,559,165 (12,778,642) (10,433,954) - (2,874,789) Increase in Net Assets 2,927,171 7,949,150 12,348,655 11,281,186 15,275,826 19,230,336 Net Assets at Beginning of Year 180,996,512 164,807,362 190,615,579 187,574,393 371,612,091 352,381,755 Prior Period Adjustment 5,396,580 8,240,000 (4,820,000) (8,240,000) 576,580 - Net Assets at End of Year 189,320,263$ 180,996,512$ 198,144,234$ 190,615,579$ 387,464,497$ 371,612,091$ 8 Management's Discussion and Analysis For the Fiscal Year Ended September 30, 2009 (Unaudited) City of College Station, Texas Governmental activities. Governmental activities increased the City of College Station's net assets by $2,927,171 thereby accounting for 18.5 percent of the total growth in net assets. Key elements of this increase are as follows:  Property taxes increased $2,045,919 (10.4 percent) during the year. This is primarily the result of the total ad valorem assessed valuations increasing by $478 million or 10.5 percent over fiscal year 2008.  Sales and mixed beverage taxes decreased $368,760 (1.8 percent) during the year. This is attributable to the slowdown in the economy seen during the year.  Interest and investment income decreased $1,972,413 (58.3%) due to continued low interest rates on investments.  Charges for Services increased by $1,956,884 (16.8 percent) during the year. This is primarily due to changes made with ambulance collection services resulting in higher unavailable deferred revenue. The chart below illustrates the City's governmental revenues by source. For governmental activities overall without regard to program, property tax (28 percent) and sales tax (24 percent) are the largest sources of funds followed by charges for services (17 percent), and grants and contributions (6 percent). All other governmental revenues account for 25 percent of all governmental revenues. Charges for Services 17% Grants and  Contributions 6% Property Tax 28% Sales Tax 24% Other Taxes 7% Investment Income 2% Transfers 16% City of College Station, Texas Governmental Revenues By Source  $80,794,266 9 Management's Discussion and Analysis For the Fiscal Year Ended September 30, 2009 (Unaudited) City of College Station, Texas Another useful chart depicts governmental activity program revenues relative to program expenses. That data is presented below: Governmental Activities Comparison of Program Revenues to Program Expenses - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 18,000,000General GovernmentFiscal ServicesPoliceFirePlanning and Development ServicesPublic WorksCapital ProjectsParks and RecreationLibraryInformation TechnologyInterest on Long-Term DebtUnallocated DepreciationProgram Revenues Program Expenses Business-type activities. Business-type activities increased the City of College Station's net assets by $12,348,655, thereby accounting for 77.9 percent of the total growth in net assets. Key elements of this increase are as follows:  With the continued growth in the area, capital contributions continued to be a major source of revenue for the electric, water, and wastewater funds. In fiscal year 2009 capital contributions amounted to $6,846,033.  Electric utility expenses saw an increase of $6,955,369 or 9.9% percent from fiscal year 2008. This is primarily attributable to increased purchased power expenses.  Charges for services increased by $10,552,587 or 9.6 percent from fiscal year 2008 due to utility rate increases. 10 Management's Discussion and Analysis For the Fiscal Year Ended September 30, 2009 (Unaudited) City of College Station, Texas Revenues for the City's business-type activities are presented in the following chart. Charges for services provided the largest share of revenues (94 percent) for the City's business-type activities. It was followed by grants and contributions (5 percent) and investment income (1 percent). Charges for  Services 94% Grants and  Contributions 5% Investment Income 1% Business‐type Revenues  $128,370,973 11 Management's Discussion and Analysis For the Fiscal Year Ended September 30, 2009 (Unaudited) City of College Station, Texas Another useful chart depicts business-type activity program revenues relative to program expenses. That data is presented below: Business-type Activities Comparison of Program Revenues to Program Expenses - 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 80,000,000 90,000,000 Electric Water Wastewater Sanitation Northgate Parking Program Revenues Program Expenses 12 Management's Discussion and Analysis For the Fiscal Year Ended September 30, 2009 (Unaudited) City of College Station, Texas FINANCIAL ANALYSIS OF THE CITY'S FUNDS As noted previously, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds The focus of the City's governmental funds is to provide information on near-term inflows, outflows, and balances of resources that are available for spending. Such information is useful in assessing the City's financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. The types of governmental funds reported by the City include the General Fund and the Debt Service Fund. Other governmental funds of the City are reported as non-major funds. As of the end of the current fiscal year, the City's governmental funds reported combined ending fund balances of $53,394,991. Approximately 15.2 percent ($8,102,443) of this total amount constitutes unassigned fund balance and is available for spending at the City's discretion. The remainder of fund balance is reserved to indicate that it is not available for new spending because it has already been committed as follows: Nonspendable $922,044 Restricted $39,470,588 Committed $2,627,403 Assigned $2,272,513 A detailed breakdown of the fund balance reserve can be found in Note IV. H. Reservations of Fund Balances. Overall, revenues for governmental functions totaled $63,905,979 in the fiscal year ended September 30, 2009, an increase of 2.1 percent or $1,325,437 from the fiscal year ended September 30, 2008. Expenditures for governmental functions totaling $107,925,893 increased by approximately 19.3 percent ($17,454,287) from the fiscal year ended September 30, 2008. In fiscal year 2009, expenditures for governmental functions exceeded revenues by $44,019,914. That amount was 57.8 percent more than the previous year's amount of $27,891,064 and due to an increase in capital outlay expenditures in fiscal year 2009 over 2008. The General Fund is the chief operating fund of the City of College Station. At the end of the current fiscal year, the unassigned fund balance was $7,557,419 while the total fund balance was $9,378,429. The City's fiscal and budgetary policies require that the General Fund's fund balance be at least equal to 15 percent of budgeted expenditures, a percentage equal to 55 days of expenditures. The total fund balance is approximately 17.2 percent of fiscal year 2009 amended budgeted expenditures and exceeds the minimum requirement set by policy. As a measure of the fund's liquidity, it is useful to compare both unassigned and total fund balance to total fund actual expenditures. Unassigned fund balance represents 13.0 percent of total general fund expenditures, while total fund balance represents 16.2 percent of total general fund expenditures. The total fund balance for the general fund continues to meet and exceed the Fiscal and Budgetary Policy of having 15 percent of expenditures available in fund balance. 13 Management's Discussion and Analysis For the Fiscal Year Ended September 30, 2009 (Unaudited) City of College Station, Texas The General Fund’s fund balance decreased by $2,606,960 during the current fiscal year. The key factors in this change follow:  The fiscal year 2009 original budget anticipated a reduction in fund balance for the purchase of one time equipment, and the completion of one time projects.  Sales tax revenues came in lower than anticipated in fiscal year 2009.  Overall expenditures were up by approximately 12 percent, due to: o Increases in fuel, transportation costs and petroleum based products, and o Salary and benefit cost increases due to filling additional full time equivalent positions including police and fire personnel, and due to increases in the pay plan and in retirement costs. The Debt Service Fund ended the fiscal year with a fund balance of $3,901,210. This entire amount is reserved for the payment of debt service. The net increase in fund balance during the current fiscal year was $83,516. An $888,025 increase in debt service revenues was more than enough to cover principal retirements and interest payments. Proprietary Funds The City's proprietary funds provide the same type of information found in the government-wide financial statements but in more detail. At the end of the current fiscal year, the City's proprietary funds reported combined ending net assets of $195,379,608. 22.5 percent ($44,632,788) of this total amount constitutes unrestricted net assets. The remainder of net assets for the proprietary funds, $150,746,820, is reported as follows: (1) Invested in capital assets, net of related debt ($130,460,673), (2) Restricted for Inventories ($1,528,714) (3) Restricted for debt service ($1,590,977), and (4) Restricted for Capital Projects ($17,166,456). Operating revenues for proprietary activities totaled $116,291,459 for the fiscal year, an increase of 8.6 percent or $9,226,723 from the previous fiscal year. Operating expenses increased $7,468,371 or 8.3 percent for the same period causing operating income to increase $1,758,352 or 10.2 percent from the previous year. The proprietary funds reported net non-operating expenses of $857,774 at the end of fiscal year 2009 as compared to net non-operating expenses of $537,409 in the previous fiscal year. Net assets increased $12,127,078 in fiscal year 2009. This is $552,914 more than the increase reported in fiscal year 2008. 14 Management's Discussion and Analysis For the Fiscal Year Ended September 30, 2009 (Unaudited) City of College Station, Texas Electric Fund At the end of the fiscal year, the unrestricted net assets for the Electric Fund totaled $12,564,355. The electric utility ended the fiscal year with working capital (current assets minus current liabilities) of $9,522,549, a decrease of 6.3 percent from fiscal year 2008. The City’s policy with regard to its enterprise funds is to maintain at least 15 percent of annual operating expenses in working capital, a percentage equal to 55 days of expenses. At September 30, 2009, Electric Fund working capital equaled approximately 12.6 percent of annual operating expenses. Electric Fund operating revenues increased by 7.8 percent ($5,996,871) during fiscal year 2009, while operating expenses increased 10.0 percent ($6,868,349) during the same period. This resulted in operating income of $6,878,123 which is an 11.2 percent decrease ($871,478) in operating income in fiscal year 2009 over fiscal year 2008. The decrease in operating income is also attributable to an increase in operating expense due to anticipated higher purchased power costs. The above resulted in a decrease in net assets of $1,274,048 in the Electric Fund during the fiscal year. Water Fund Unrestricted net assets for the Water Fund at September 30, 2009 were $17,069,556. Working capital in the Water Fund at the end of fiscal year 2009 was $11,388,792, an increase of approximately 91.5 percent from fiscal year 2009. Water Fund working capital was 160.2 percent of total operating expense and exceeds the minimum 15 percent requirement under the Council's adopted policy. Water Fund operating revenues increased by 19.3 percent ($2,289,286) during fiscal year 2009. Operating expenses of $7,108,101 increased 5.2 percent ($354,524) over fiscal year 2008. This resulted in operating income of $6,993,718 which was an increase of $1,934,762 in fiscal year 2009 over fiscal year 2008. The Water Fund's net assets increased $7,855,009 during the fiscal year, a 75.8 percent increase over the previous year. Wastewater Fund The Wastewater Fund's unrestricted net assets at the end of fiscal year 2009 were $10,351,718. The Wastewater Fund ended the fiscal year with a working capital balance of $7,120,107, which was 4.0 percent above fiscal year 2008. Fiscal year 2009 Wastewater Fund working capital was 88.0 percent of total operating expenses and is well above the minimum requirement for the fund. Operating revenues in the Wastewater Fund were $11,655,528, a $470,963 (4.2 percent) increase over the previous fiscal year. Operating expenses increased from $7,476,022 to $8,089,816 or 8.2 percent while operating income decreased by 3.9 percent from $3,708,543 to $3,565,712. 15 Management's Discussion and Analysis For the Fiscal Year Ended September 30, 2009 (Unaudited) City of College Station, Texas BUDGETARY HIGHLIGHTS The final amended budget for fiscal year 2009 totaled $264,803,632 for all funds. Of this amount $203,906,308 (77.0 percent) was budgeted for operations and maintenance expenditures, and $60,897,324 (23.0 percent) was budgeted for capital improvement projects. In the General Fund the final amended budget showed a reduction in fund balance of $1,313,605. The actual change in fund balance was $1,799,504, or $485,899 higher than the final amended budgeted change. The following are some of the key factors in the change in fund balance:  ($1,120,680) – Lower sales tax revenues than originally budgeted due to slowdown in the economy.  ($236,914) – Lower investment income than forecasted due to lower interest earnings on investments  ($390,619) – Lower expenditures related to economic development incentive outlays that were budgeted in fiscal year 2009. Strategic planning is a driving force in the preparation of the City's budget. The City Council has identified the following areas of strategic priority:  Citywide Safety and Security  Effective Communications  Growing Sustainable Revenue Sources Balanced with Needs  Destination Place to Live and Work  Exceptional Multi Modal Mobility  Sustainable Quality City Workforce  Exceptional Infrastructure and Core Services  Diverse Growing Economy  Neighborhood Integrity  Green College Station Budget resources were included in fiscal year 2009 to address these priorities. 16 Management's Discussion and Analysis For the Fiscal Year Ended September 30, 2009 (Unaudited) City of College Station, Texas CAPITAL ASSETS The City of College Station's investment in capital assets for its governmental and business-type activities as of September 30, 2009 amounted to $488,198,262 (net of accumulated depreciation). This investment in capital assets includes land, utility systems, buildings and building improvements, improvements other than buildings, machinery and equipment, infrastructure, and construction in progress. Capital Assets at Year End Net of Accumulated Depreciation Governmental Business-Type Activities Activities Total Land 37,308,851$ 690,707$ 37,999,558$ Utility Systems - 198,369,844 198,369,844 Buildings and Building Improvements 20,606,606 4,653,505 25,260,111 Improvements Other than Buildings 21,263,210 - 21,263,210 Machinery and Equipment 11,910,715 88,833 11,999,548 Infrastructure 101,947,081 - 101,947,081 Construction in Progress 21,797,129 69,561,781 91,358,910 214,833,592$273,364,670$ 488,198,262$ Major capital projects completed by the City during the 2009 fiscal year include the following:  University Park  Edelweiss Gartens Park  Forestry Shop  Woodland Hills Park  Adamson Pool Bath House Replacement  Oaks Park Improvements  Neighborhood Park Shade Structures  Neighborhood Park Improvements – Fencing  Dartmouth Extension  Eagle Avenue Extension  Barron Road Interchange Design  Arrington/Decatur Extension  Church Avenue Rehabilitation  Traffic Signal – Rio Grande/Rock Prairie  Traffic Signal – Welsh/Holleman  Traffic Signal – Fitch/Lakeway  Phone System Replacment  Police Field Reporting  EMS Reporting  Fire Station #3 Relocation  Memorial Cemetery/Aggie Field of Honor  Bee Creek Combine Drainage  Water Well #7  Water Parallel Transmission Line SH 21 to Villa Maria 17 Management's Discussion and Analysis For the Fiscal Year Ended September 30, 2009 (Unaudited) City of College Station, Texas  Sandy Point Pump Station Fiber Optic Line  Hondo-Southwest Parkway Wastewater Rehabilitation Of significance is $9,275,979 in developer capital contributions during fiscal year 2009. These contributions accounted for 1.9 percent of the $488,198,262 million in capital assets. Additional information on the City's capital assets can be found in Note IV-C to the financial statements on pages 50-51. DEBT ADMINISTRATION At the end of the September 30, 2009 fiscal year, the City of College Station had total debt outstanding of $243,760,000. Of this amount, $150,005,000 (61.5 percent) comprised debt backed by the full faith and credit of the City. Certain Certificate of Obligations fund business-type activities in the Electric, Water,Wastewater, and Northgate Parking Garage Funds. In fiscal year 2009, a prior period adjustment was made to reflect $4,820,000 in business-type activity 2000-A Certificates of Obligation outstanding at October 1, 2008. The remaining debt, $93,755,000, is revenue bonds secured by specified revenue sources. Year-End Outstanding Debt Payable Governmental Business-Type Activities Activities Total General Obligation Bonds 59,145,000$ -$ 59,145,000$ Certificates of Obligation 38,575,000 52,285,000 90,860,000 Revenue Bonds - 93,755,000 93,755,000 97,720,000$ 146,040,000$ 243,760,000$ The City's total debt increased by $19,720,000 (8.8 percent) during the current fiscal year. The change in total debt was a result of the following:  Issuance of $3,335,000 in general obligation improvement bonds and $31,315,000 in certificates of obligation, which funded governmental and business-type activities; and  Retirement of $4,885,000 in general obligation bonds, $4,240,000 in certificates of obligation, and the retirement of $5,805,000 in utility revenue bonds. The City's General Obligation and Certificates of Obligation have an underlying rating of AA by Standard & Poors ("S&P") and Aa3 by Moody's Investors Service ("Moody's"). The underlying ratings for the City's revenue bonds are A+ by S&P and A1 by Moody's. Additional information on the City's long-term debt can be found in Note IV-G to the financial statements on pages 54-58 of this report. ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES The City of College Station’s growth slowed in fiscal year 2009 making the fiscal year 2010 budget a challenging one to prepare. The following are some key fiscal and economic indicators for College Station including: 18 Management's Discussion and Analysis For the Fiscal Year Ended September 30, 2009 (Unaudited) City of College Station, Texas  An estimated population increase of 75 percent for the period of 1990 through June 2009,  An approximate $367 million, or 7.31%, increase to the ad valorem tax base for fiscal year 2010,  A local economy that has maintained an annual unemployment rate of less than 5 percent since 1990, but has seen higher unemployment of 6% in 2009, though still one of the lowest in the State of Texas.  Sales and mixed drink beverage tax revenue that grew by 10 percent during the 2008 fiscal year, but has fallen by 1.8 in fiscal year 2009. College Station has felt the effects of the national economic slowdown in fiscal year 2009. Part of the reason the City has not seen a bigger economic impact is because of the major influence of Texas A&M University on the local economy. The key focus of the Fiscal Year 2010 budget was to provide the core services for the citizens and visitors of College Station with very limited revenue resources, in an uncertain economy. With the effects of the national economy finally being felt at the local level, this was a very challenging budget to prepare. Revenue streams that in the past saw steady and consistent growth are flat and even declining in some cases. Sales tax revenues, the largest revenue stream in the General Fund, have been declining. The ad valorem tax rate for the 2010 fiscal year is $0.4394 per $100 valuation ($0.209967 for operations and maintenance and $0.229433 for debt service). This tax rate will meet the debt service obligations of the City and provide operations and maintenance funding in the General Fund. It will be necessary to closely monitor economic conditions this fiscal year, and if sales tax and other revenues do not perform as forecasted, then some of the proposals in the budget will be delayed, or will not occur. Budget reductions were made in fiscal year 2009 and in the fiscal year 2010 budget. The fiscal year 2009 General Fund budget was reduced by $954,175. The fiscal year 2010 base budget was reduced by $1.9 million., and of this amount $1.2 million was reduced from the General Fund. These reductions required careful consideration, and were made with as little impact on services as possible. These reductions were necessary in order to ensure expenditures will not exceed lower than anticipated revenues. The 2010 budget includes a 9 percent increase in the Electric Fund. This rate increase is needed to continue the planned increases in purchased power costs that have been phased in over the last several years. The 2010 budget does not include a rate increase in the Water Fund, Wastewater Fund, Sanitation Fund, or Drainage Utility Fund. The fiscal year 2010 budget for capital improvements totals $53,210,063. The City anticipates significant expenditures for infrastructure projects throughout the city. These projects include rehabilitation of utilities, drainage ways, and streets. In November 2008, voters approved $76,950,000 in future General Obligation Bonds authorization for streets, traffic, fire station projects, the library expansion project, and parks and recreation projects. Some of the more significant upcoming capital projects are as follows (amounts presented reflect appropriations over the life of the project):  Holleman Drive Extension ($2 million),  Discovery Drive Extension ($2 million),  Victoria Avenue Extension ($2.5 million)  Penberthy Extension ($3.4 million) 19 Management's Discussion and Analysis For the Fiscal Year Ended September 30, 2009 (Unaudited) City of College Station, Texas  Street Rehabilitation in the Southside Area ($2.5 million),  Street Rehabilitation in the Northgate Area ($2.3 million),  Rock Prairie Road Widening Design and Land ($2.9 million),  Barron Road Widening Phase II ($11.4 million),  Creek View Neighborhood Park ($515,000)  Skate Park ($920,000)  Fire Station #6 ($6.99 million)  Library Expansion ($8.4 million)  Radio System Replacement ($4.9 million),  Parallel Wellfield Collection Line Phase I ($5.1 million),  Land Acquisition – Well Sites ($6.6 million),  Well 8 ($5.1 million),  Well 8 Collection Line ($3.0 million),  Water Reclaim/Irrigation ($3.6 million)  Raymond Stotzer Water Line Extension ($3.4 million),  SH 40 Water Line – Graham to Barron ($2.6 million)  FM 60 Widening Water Relocation ($2.5 million)  Raymond Stotzer Wastewater Extension (3.8 million),  Nantucket Gravity Sewer ($0.5 million)  Lick Creek – replace trunk line ($2.8 million),  Southside Water Rehabilitation ($3.2 million),  Southside Wastewater Rehabilitation ($3.0 million),  Bee Creek Drainage Phase 4 and 5 ($1.4 million). The City plans to issue $16,440,500 in general obligation bonds from the 2003 and 2008 bond authorization for the following: $9,472,500 for street and transportation improvements, $100,000 for sidewalk improvements and $100,000 for traffic signals, $1,586,000 for parks and recreation projects, $250,000 for city hall facility improvements, $4,000,000 for Fire Station #6, and $932,000 for the library expansion project. The City also plans to issue $425,000 in certificates of obligations for technology projects. The City also plans to issue $28,300,000 in long term debt for the following utility projects: $8,675,000 for electric capital projects, $12,025,000 for water capital projects, and $7,600,000 for wastewater capital projects. In addition, a total of $9,700,000 in cash from the utility funds are projected to be used for capital projects in fiscal year 2010. REQUESTS FOR INFORMATION This financial report is designed to provide a general overview of the City of College Station's financial position for all who have an interest in the City's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to: City of College Station Fiscal Services Department ATTN: Chief Financial Officer P.O. Box 9960 College Station, Texas 77842-9960 or visit our website at http://www.cstx.gov. 20 21 22 Governmental Activities Business-type Activities Total ASSETS Cash and cash equivalents 54,661,179$ 27,904,833$ 82,566,012$ Investments 13,466,838 7,174,897 20,641,735 Receivables (net of allowance for uncollectibles)6,828,139 17,912,657 24,740,796 Internal balance (2,805,712) 2,805,712 - Inventories 5,747,940 1,528,714 7,276,654 Prepaids 328,764 - 328,764 Restricted assets: Temporarily restricted: Cash and cash equivalents 792,332 15,340,021 16,132,353 Investments 146,177 3,425,219 3,571,396 Accrued interest receivable - 120,052 120,052 Permanently restricted: Cash and cash equivalents 1,518,666 - 1,518,666 Investments 372,810 - 372,810 Receivables, net 32,123 - 32,123 Inventory 2,616,907 - 2,616,907 Equity in Joint Venture - 12,551,808 12,551,808 Deferred Issuance Costs, net 304,776 916,887 1,221,663 Capital assets (net of accumulated depreciation): Land and Construction in Progress 59,105,980 70,252,488 129,358,468 Other capital assets net of accumulated depreciation 155,727,612 203,112,182 358,839,794 Total assets 298,844,531 363,045,470 661,890,001 LIABILITIES Accounts payable and other current liabilities 2,719,654 14,596,925 17,316,579 Retainage Payable 745,276 276,722 1,021,998 Refundable Deposits 81,578 - 81,578 Claims Payable 1,549,912 - 1,549,912 Accrued liabilities 2,807,356 782,922 3,590,278 Customer Construction Advances 511,106 99,481 610,587 Unearned Revenues 337,160 80,932 418,092 Liabilities Payable from Restricted Assets: Accrued interest payable 612,732 1,008,084 1,620,816 Accrued Liabilities - 17,453 17,453 Refundable deposits - 1,720,215 1,720,215 Noncurrent liabilities: Due within one year: Compensated Absences 171,365 25,763 197,128 Bonds and Certificates of Obligation Payable 8,050,000 7,955,000 16,005,000 Due in more than one year: Bonds and Certificates of Obligation Payable 89,670,000 138,085,000 227,755,000 Deferred Charge - Refunding (355,015) - (355,015) Unamortized Premium/Discount on Bonds 267,781 (236,778) 31,003 Compensated Absences 2,355,363 489,517 2,844,880 Total liabilities 109,524,268 164,901,236 274,425,504 NET ASSETS Invested in capital assets, net of related debt 89,475,869 130,924,993 220,400,862 Restricted 48,296,712 20,286,147 68,582,859 Unrestricted 51,547,682 46,933,094 98,480,776 Total net assets 189,320,263$ 198,144,234$ 387,464,497$ The notes to the financial statements are an integral part of this statement. CITY OF COLLEGE STATION Statement of Net Assets September 30, 2009 23 CITY OF COLLEGE STATION, TEXAS Statement of Activities For the Year Ended September 30, 2009 Program Revenues Operating Capital Charges for Grants and Grants and Functions/Programs Expenses Services Contributions Contributions Governmental activities: General Government $ 8,631,908 $ 890,241 $ 1,067,259 $- Fiscal Services 3,821,996 34,517 3,860 - Police 13,945,079 4,998,623 6,089 - Fire 11,778,585 3,018,414 533,206 - Planning and Development Services 2,823,296 1,051,943 - - Public Works 16,804,436 1,793,174 7,792 2,644,629 Capital Improvement Program 476,462 - - - Parks and Recreation 10,136,521 1,838,810 278,417 - Library 1,052,838 - - - Information Technology 3,471,714 - - - Interest on long-term debt 4,135,146 - - - Unallocated Depreciation 789,074 - - - Total governmental activities 77,867,055 13,625,722 1,896,623 2,644,629 Business-type activities: Electric 77,441,351 82,904,777 - 1,647,796 Water 9,287,343 17,312,431 - 1,753,231 Wastewater 9,829,813 11,655,528 - 3,445,006 Sanitation 5,776,002 7,988,795 17,792 - Northgate Parking 909,167 990,735 - - Total business-type activities 103,243,676 120,852,266 17,792 6,846,033 Total primary government $ 181,110,731 $ 134,477,988 $ 1,914,415 $9,490,662 General Revenue: Property taxes Sales and Mixed Beverage taxes Franchise taxes Hotel occupancy taxes Unrestricted investment earnings Transfers Total general revenues and transfers Change in net assets Net assets - beginning Prior Period Adjustment Net assets - ending The notes to the financial statements are an integral part of this statement. 24 Net Revenue (Expense) and Changes in Net Assets Governmental Business-type Activities Activities Total $ (6,674,408) $- $ (6,674,408) (3,783,619) - (3,783,619) (8,940,367) - (8,940,367) (8,226,965) - (8,226,965) (1,771,353) - (1,771,353) (12,358,841) - (12,358,841) (476,462) - (476,462) (8,019,294) - (8,019,294) (1,052,838) - (1,052,838) (3,471,714) - (3,471,714) (4,135,146) - (4,135,146) (789,074) - (789,074) (59,700,081) - (59,700,081) - 7,111,222 7,111,222 - 9,778,319 9,778,319 - 5,270,721 5,270,721 - 2,230,585 2,230,585 - 81,568 81,568 - 24,472,415 24,472,415 (59,700,081) 24,472,415 (35,227,666) 22,769,699 - 22,769,699 19,873,213 - 19,873,213 2,217,618 - 2,217,618 3,574,649 - 3,574,649 1,413,431 654,882 2,068,313 12,778,642 (12,778,642) - 62,627,252 (12,123,760) 50,503,492 2,927,171 12,348,655 15,275,826 180,996,512 190,615,579 371,612,091 5,396,580 (4,820,000) 576,580 $ 189,320,263 $ 198,144,234 $ 387,464,497 25 General Debt Service Other Governmental Funds Total Governmental Funds Assets Equity in Cash and Cash Equivalents 8,709,467$ 3,125,126$ 32,692,367$ 44,526,960$ Equity in Investments 2,186,373 767,172 8,025,492 10,979,037 Receivables Accrued Interest 24,093 8,912 94,168 127,173 Grants 29,791 -185,719 215,510 Letter of Credit 25,000 --25,000 Accounts 2,719,748 - 1,014,531 3,734,279 Taxes 1,930,778 339,494 - 2,270,272 Other 3,229 --3,229 Loans --539,174 539,174 Less Allowance for Uncollectible Accounts (17,416)-(99,897) (117,313) Inventories 49,359 -320,833 370,192 Prepaid Costs 13,031 -315,733 328,764 Restricted Assets Equity in Cash and Cash Equivalents 196,868 -595,464 792,332 Equity in investments --146,177 146,177 Total Assets 15,870,321$ 4,240,704$ 43,829,761$ 63,940,786$ Liabilities and Fund Balances Accounts Payable 822,294$ -$ 1,076,527$ 1,898,821$ Retainage Payable 7,400 - 737,876 745,276 Interfund Payables 480,000 --480,000 Refundable Deposits 48,213 -33,365 81,578 Accrued Liabilities 2,174,798 -632,558 2,807,356 Customer Construction Advances 58,566 -452,540 511,106 Other Deferred Revenues 2,900,621 339,494 781,543 4,021,658 Total Liabilities 6,491,892 339,494 3,714,409 10,545,795 Fund Balances Nonspendable 62,390 -859,654 922,044 Restricted 95,220 3,901,210 35,474,158 39,470,588 Committed -- 2,627,403 2,627,403 Assigned 1,663,400 -609,113 2,272,513 Unassigned 7,557,419 -545,024 8,102,443 Total Fund Balances 9,378,429 3,901,210 40,115,352 53,394,991 Total Liabilities and Fund Balances 15,870,321$ 4,240,704$ 43,829,761$ 63,940,786$ The notes to the financial statements are an integral part of this statement. CITY OF COLLEGE STATION, TEXAS Balance Sheet Governmental Funds September 30, 2009 26 CITY OF COLLEGE STATION, TEXAS Reconciliation of Governmental Funds Balance Sheet to the Statement of Net Assets September 30, 2009 Total Fund Balance per balance sheet:53,394,991$ Amounts reported for governmental activities in the statement of net assets are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the governmental funds balance sheet. Includes capital assets of the Internal Service Funds.214,833,592 Other assets are not available to pay for current-period expenditures and, therefore, are deferred in the funds.3,684,498 Plot spaces in the Memorial Cemetery and Aggie Field of Honor became available for sale during the fiscal year. These amounts had been expensed in prior years in the governmental funds and held in construction in progress in the government wide balance sheet. Assets held for resale, opening of cemetery 8,391,822$ Assets sold during the fiscal year (462,872) 7,928,950 Interest payable on long-term debt does not require current financial resources and therefore is not reported in the governmental funds balance sheet.(612,732) Internal Service Funds are used by management to charge the costs of certain activities, such as insurance, fleet maintenance, and equipment replacement to individual funds. The assets and liabilities of the internal service funds are included in the government-wide statements of net assets (net of the amount allocated to business-type activities, capital assets and long-term liabilities). Internal Service Fund balances not included in other reconciling items: Current assets 14,759,524$ Current liabilities (2,485,081) Net amount allocated to business-type activities (2,328,761) 9,945,682 Long-term liabilities, including bonds payable, are not due and payable in the current period and, therefore, are not reported in the governmental funds balance sheet. Includes Internal Service Funds' non-current liabilities. Due within one year (8,221,365)$ Due in more than one year (92,025,363) Deferred charges 392,010 (99,854,718) Net Assets of governmental activities:189,320,263$ The notes to the financial statements are an integral part of this statement. 27 General Debt Service Other Governmental Funds Total Governmental Funds Revenues Taxes 31,662,441$ 12,138,737$ 4,634,001$ 48,435,179$ Licenses and Permits 1,007,151 -- 1,007,151 Intergovernmental 829,506 - 1,067,117 1,896,623 Charges for Services 2,922,495 -620,569 3,543,064 Fines, Forfeits, and Penalties 3,589,478 -902,482 4,491,960 Special Assessment -- 1,793,174 1,793,174 Investment Income 235,181 111,370 778,831 1,125,382 Rents and Royalties 292,660 -476,490 769,150 Contributions 22,725 -4,272 26,997 Reimbursed Expenditures 358,756 1,102 53,893 413,751 Other 153,859 - 249,689 403,548 Total Revenues 41,074,252 12,251,209 10,580,518 63,905,979 Expenditures Current General Government 4,763,622 - 671,733 5,435,355 Fiscal Services 3,161,357 - 675,429 3,836,786 Police 14,083,071 - 24,669 14,107,740 Fire 11,754,088 - - 11,754,088 Planning and Development Services 2,803,512 - 67,829 2,871,341 Public Works 6,495,104 - 1,424,899 7,920,003 Capital Improvement Projects 476,462 - - 476,462 Parks and Recreation 8,785,858 - 569,443 9,355,301 Information Services 3,298,479 - 626 3,299,105 Library 1,119,771 - - 1,119,771 Contributions 790,262 - 1,699,300 2,489,562 Other 385,178 - 101,985 487,163 Capital Outlay - - 31,931,401 31,931,401 Intergovernmental - - 745,908 745,908 Debt Service Principal Retirement - 7,935,000 - 7,935,000 Interest Payments - 4,114,356 - 4,114,356 Fiscal Charges - 13,139 33,412 46,551 Total Expenditures 57,916,764 12,062,495 37,946,634 107,925,893 Excess (Deficiency) of Revenues Over (Under) Expenditures (16,842,512) 188,714 (27,366,116) (44,019,914) Other Financing Sources (Uses) Issuance of Debt - - 9,815,000 9,815,000 Sales of Capital Assets 5,606 - 500,000 505,606 Transfers In 15,047,102 180,350 7,453,470 22,680,922 Transfer Out (9,700) (285,548) (8,198,891) (8,494,139) Total Other Financing Sources (Uses) 15,043,008 (105,198) 9,569,579 24,507,389 Net Change in Fund Balances (1,799,504) 83,516 (17,796,537) (19,512,525) Fund Balances, October 1 11,177,933 3,817,694 57,335,309 72,330,936 Prior Period Adjustment 576,580 576,580 Fund Balances, September 30 9,378,429$ 3,901,210$ 40,115,352$ 53,394,991$ The notes to the financial statements are an integral part of this statement. CITY OF COLLEGE STATION, TEXAS Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds For the Fiscal Year Ended September 30, 2009 28 Net change in fund balance - total governmental funds:(19,512,525)$ Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However, in the government-wide statement of activities the cost of those assets are allocated over their estimated useful lives as depreciation expense. This is the amount of capital assets recorded in the current period.32,308,551 The effect of various miscellaneous transactions involving capital assets (e.g., sales, trade ins, and contributions) is to increase net assets.469,736 Depreciation expense on capital assets is reported in the government-wide statement of activities, but they do not require the use of current financial resources. Therefore, depreciation expense is not reported as expenditure in governmental funds.(11,522,036) Some property tax, intergovernmental and ambulance revenues will not be collected for several months after the the city's fiscal year end. These are not considered "available" revenues in the governmental funds until received. Change in amount deferred on the governmental fund statements.1,666,796 Plot spaces in the Memorial Cemetery and Aggie Field of Honor became available for sale during the fiscal year. These amounts had been expensed in prior years in the governmental funds and held in construction in process in the government wide balance sheet. Assets held for resale sold during the fiscal year.(462,872) The issuance of long-term debt (i.e., bonds, certificates of obligation) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net assets. Also, governmental funds report the effect of issuance costs, premiums, discounts, and similar items when debt is first issued, whereas the amounts are deferred and amoritized in the statement of activities. This amount is the net effect of these differences in the treatment of long-term debt and related items. Bonds issued (3,335,000)$ Certificates of Obligation issued (6,480,000) Bond principal retirement 4,885,000 Certificate of Obligation principal retirement 3,050,000 Amortization of deferred charges (9,352) Amortization of bond premiums/discounts 6,228 Amortization of bond refunding losses (8,255) (1,891,379) Payment of compensated absences is reported as an expenditure in the governmental funds when actually paid. However, on the government-wide statement of changes in net assets, compensated absences are expensed as they are accrued. Change in the compensated absences liability.(170,605) Accrued interest expense on long-term debt is reported in the government-wide statement of activities, but does not require the use of current financial resources; therefore, accrued interest expense is not reported as expenditures in the governmental funds. Change in accrued interest.(20,790) Internal Service Funds are used by management to charge the costs of certain activities, such as insurance, fleet maintenance, and equipment replacement to individual funds. The net revenue of the internal service funds is reported with governmental activities net of the amount allocated to business-type activities and depreciation expense. Change in net assets (72,255)$ Net amount allocated to business activities (221,577) Depreciation expense 2,356,127 2,062,295 Change in Net Assets of governmental activities:2,927,171$ The notes to the financial statements are an integral part of this statement. For the Fiscal Year Ended September 30, 2009 CITY OF COLLEGE STATION, TEXAS Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 29 Governmental Activities Electric Water Wastewater Other Enterprise Funds Total Enterprise Funds Internal Service Funds Current Assets Equity in Cash and Cash Equivalents 11,607,284$ 7,687,906$ 7,003,904$ 1,541,619$ 27,840,713$ 11,717,005$ Equity in Investments 3,175,100 1,886,257 1,719,354 378,445 7,159,156 2,876,351 Restricted Assets Equity in Cash and Cash Equivalents 399,008 458,302 469,325 8,221,696 9,548,331 - Equity in Investments 44,431 112,506 115,212 2,018,304 2,290,453 - Accrued Interest Receivable 1,877 115,535 2,640 -120,052 - Receivables Accrued Interest 36,662 22,963 20,783 27,819 108,227 33,411 Accounts 12,061,132 4,851,498 1,551,669 1,008,692 19,472,991 76,937 Other 1,116,308 --- 1,116,308 14,143 Less: Allowance for Uncollectible Accounts (2,378,555) (117,194) (204,416) (122,229) (2,822,394)(24,028) Due from Other Funds 40,000 40,000 40,000 -120,000 - Inventories 1,149,251 330,024 32,907 16,532 1,528,714 65,705 Prepaid items ------ Total Current Assets 27,252,498 15,387,797 10,751,378 13,090,878 66,482,551 14,759,524 Noncurrent Assets Equity in Cash and Cash Equivalents 2,139,749 2,918,460 733,481 - 5,791,690 - Equity in Investments 238,268 716,439 180,059 - 1,134,766 - Total Restricted Assets 2,378,017 3,634,899 913,540 - 6,926,456 - Advance to Other Funds 120,000 120,000 120,000 -360,000 - Equity in Joint Venture --- 12,551,808 12,551,808 - Deferred Charges Bond Issuance Charges 410,073 453,300 418,163 46,963 1,328,499 - Accumulated Amortization (115,022) (137,920) (158,670)- (411,612)- Total Deferred Charges 295,051 315,380 259,493 46,963 916,887 - Property and Equipment Utility Plant 133,688,080 92,167,537 92,629,406 - 318,485,023 - Buildings --- 5,743,755 5,743,755 786,525 Machinery and Equipment ---637,081 637,081 24,588,958 Accumulated Depreciation (59,353,110) (31,076,895) (30,149,493) (1,638,498) (122,217,996) (16,088,062) Construction in Progress 9,080,335 44,502,774 15,978,672 - 69,561,781 - Land ---690,707 690,707 - Total Property and Equipment 83,415,305 105,593,416 78,458,585 5,433,045 272,900,351 9,287,421 Total Noncurrent Assets 86,208,373 109,663,695 79,751,618 18,031,816 293,655,502 9,287,421 Total Assets 113,460,871 125,051,492 90,502,996 31,122,694 360,138,053 24,046,945 Liabilities Current Liabilities Accounts Payable 13,519,006 486,459 442,617 116,262 14,564,344 853,414 Retainage Payable 8,502 201,716 66,504 -276,722 - Accrued Liabilities 424,824 67,470 101,600 137,969 731,863 81,755 Customer Construction Advances 24,382 54,519 20,580 -99,481 - Other Deferred Revenues ---80,932 80,932 - Claims Payable -----1,549,912 Payable from Restricted Assets Accounts Payable 1,671 ---1,671 - Accrued Interest Payable 276,575 385,402 264,600 81,507 1,008,084 - Accrued Liablities 13,122 -2,660 -15,782 - Refundable Deposits 1,424,027 283,989 -12,199 1,720,215 - Certificates of Obligation 610,275 430,000 239,725 665,000 1,945,000 - Revenue Bonds 1,427,565 2,089,450 2,492,985 - 6,010,000 - Total Current Liablities 17,729,949 3,999,005 3,631,271 1,093,869 26,454,094 2,485,081 Noncurrent Liabilities Certificates of Obligation 17,003,303 13,825,000 5,356,697 14,155,000 50,340,000 - Revenue Bonds 23,124,427 37,346,773 27,273,800 - 87,745,000 - Unamortized Premium/Discount on Debt (74,665)(66,034)(96,079)- (236,778)- Accrued Vacation 199,181 69,106 120,753 67,089 456,129 103,626 Total Noncurrent Liabilites 40,252,246 51,174,845 32,655,171 14,222,089 138,304,351 103,626 Total Liabilities 57,982,195 55,173,850 36,286,442 15,315,958 164,758,445 2,588,707 Net Assets Invested in Capital Assets, net of related debt 38,946,383 48,333,328 42,277,917 903,045 130,460,673 9,287,421 Restricted for: Inventories 1,149,251 330,024 32,907 16,532 1,528,714 65,705 Debt service 440,670 509,835 640,472 - 1,590,977 - Capital projects 2,378,017 3,634,899 913,540 10,240,000 17,166,456 - Unrestricted 12,564,355 17,069,556 10,351,718 4,647,159 44,632,788 12,105,112 Total Net Assets 55,478,676$ 69,877,642$ 54,216,554$ 15,806,736$ 195,379,608$ 21,458,238$ Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds:2,764,626 Net assets business-type activites:198,144,234$ The notes to the financial statements are an integral part of this statement. Business-type Activities - Enterprise Funds CITY OF COLLEGE STATION, TEXAS Statement of Net Assets Proprietary Funds September 30, 2009 30 Governmental Activities Electric Water Wastewater Other Enterprise Funds Total Enterprise Funds Internal Service Funds Operating Revenues Charges for Services 80,676,212$ 13,784,166$ 11,445,321$ 7,877,445$ 113,783,144$ 9,636,023$ Premiums ----- 8,278,766 Other 1,933,993 317,653 210,207 46,462 2,508,315 275,855 Total Operating Revenues 82,610,205 14,101,819 11,655,528 7,923,907 116,291,459 18,190,644 Operating Expenses Electric Operations 70,212,816 --- 70,212,816 - Salaries and Benefits - 1,635,304 2,687,354 2,090,990 6,413,648 2,728,122 Supplies -566,510 566,254 316,203 1,448,967 1,030,780 Maintenance -100,112 211,118 542,726 853,956 169,351 Purchased Professional Services -183,041 245,355 645,852 1,074,248 166,023 Purchased Property Services - 1,292,278 820,875 1,588,367 3,701,520 75,260 Other Purchased Services -247,202 400,199 911,387 1,558,788 789,051 Claims ----- 6,600,484 Administration Fees ----- 1,865,331 Premiums ----- 1,013,296 Depreciation 4,529,930 2,624,931 2,926,568 170,059 10,251,488 2,356,127 Other 989,336 458,723 232,093 178,415 1,858,567 123,870 Total Operating Expenses 75,732,082 7,108,101 8,089,816 6,443,999 97,373,998 16,917,695 Operating Income 6,878,123 6,993,718 3,565,712 1,479,908 18,917,461 1,272,949 Nonoperating Revenues (Expenses) Investment Income 232,983 152,536 194,001 75,362 654,882 288,049 Reimbursed Expenses 294,572 3,210,612 -- 3,505,184 40,692 Grants ---17,792 17,792 3,363 Gain in Joint Venture --- 1,055,623 1,055,623 - Interest Expense (1,758,431) (2,245,232) (1,848,830) (327,055) (6,179,548)- Other, Net 32,014 62,489 39,145 (45,355)88,293 (269,167) Total Nonoperating Revenues (Expenses)(1,198,862) 1,180,405 (1,615,684)776,367 (857,774)62,937 Income Before Capital Contributions and Transfers 5,679,261 8,174,123 1,950,028 2,256,275 18,059,687 1,335,886 Capital Contributions and Transfers Capital Contributions 1,647,796 1,753,231 3,445,006 - 6,846,033 - Transfers In 721,544 127,880 605,314 285,548 1,740,286 - Transfers Out (9,322,649) (2,200,224) (2,021,938) (974,117) (14,518,928) (1,408,141) Total Capital Contributions and Transfers (6,953,309) (319,113) 2,028,382 (688,569) (5,932,609) (1,408,141) Change in Net Assets (1,274,048) 7,855,010 3,978,410 1,567,706 12,127,078 (72,255) Beginning Net Assets 56,752,724 62,022,632 50,238,144 19,059,030 21,530,493 Prior Period Adjustment -- (4,820,000)- Ending Net Assets 55,478,676$ 69,877,642$ 54,216,554$ 15,806,736$ 21,458,238$ Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds:221,577 Change in net assets of business-type activities:12,348,655$ The notes to the financial statements are an integral part of this statement. Business-type Activities - Enterprise Funds CITY OF COLLEGE STATION, TEXAS Statement of Revenues, Expenses and Changes in Net Assets Proprietary Funds For the Fiscal Year Ended September 30, 2009 31 Governmental Activities Other Total Internal Enterprise Enterprise Service Electric Water Wastewater Funds Funds Funds Cash Flows from Operating Activities: Cash Received from Customers 81,532,724$ 10,893,267$ 12,381,695$ 7,909,874 112,717,560$ 18,181,755$ Cash Payments to Suppliers for Goods and Services (64,234,030) (2,960,452) (2,179,899) (4,091,944) (73,466,325) (11,248,652) Cash Payments to Employees for Services (4,590,042) (1,643,896) (2,634,203) (2,086,163) (10,954,304) (2,564,567) Customer Deposits Received (37,422) (14,153) - 3,029 (48,546) - Cash Received for Reimbursed Expenses 294,572 3,210,612 - - 3,505,184 40,692 Cash Received for Miscellaneous Revenues 32,014 62,489 39,145 5,320 138,968 155,389 Cash Paid for Miscellaneous Expenses - - - (50,675) (50,675) - Net Cash Provided by Operating Activities 12,997,816 9,547,867 7,606,738 1,689,441 31,841,862 4,564,617 Cash Flows from Noncapital Financing Activities: Transfers In from Other Funds 721,544 127,880 605,314 285,548 1,740,286 - Transfers Out to Other Funds (9,322,649) (2,200,224) (2,021,938) (974,117) (14,518,928) (1,408,121) Net Cash Used by Noncapital Financing Activities (8,601,105) (2,072,344) (1,416,624) (688,569) (12,778,642) (1,408,121) Cash Flows from Capital and Related Financing Activities: Acquisition and Construction of Capital Assets (11,347,037) (14,155,076) (5,309,383) (48,847) (30,860,343) (2,670,535) Proceeds from Sale of Assets - - - - - 66,953 Principal Paid on Revenue Bonds (1,392,764) (1,991,349) (2,420,887) - (5,805,000) - Principal Paid on Certificates of Obligation (424,862) (235,000) (240,138) (290,000) (1,190,000) - Interest Paid on Revenue Bonds (1,155,067) (1,939,000) (1,473,412) - (4,567,479) - Interest Paid on Certificates of Obligation (452,128) (278,920) (242,422) (245,548) (1,219,018) - Proceeds from Certificates of Obligation 7,010,000 7,535,000 - 10,240,000 24,785,000 - Net Cash Provided (Used) by Capital and Related Financing Activities (7,761,858) (11,064,345) (9,686,242) 9,655,605 (18,856,840) (2,603,582) Cash Flows from Investing Activities: Purchase of Investments (14,497,829) (10,824,036) (9,067,118) (7,280,543) (41,669,526) (12,584,992) Proceeds from Sale and Maturities of - Investment Securities 20,954,461 18,173,108 12,799,902 5,372,741 57,300,212 14,212,128 Investment Income 261,235 161,830 206,078 50,749 679,892 310,867 Net Cash Provided (Used) by Investing Activities 6,717,867 7,510,902 3,938,862 (1,857,053) 16,310,578 1,938,003 Net Increase in Cash and Cash Equivalents 3,352,720 3,922,080 442,734 8,799,424 16,516,958 2,490,917 Cash and Cash Equivalents, Oct. 1 10,793,321 7,142,588 7,763,976 963,891 26,663,776 9,226,088 Cash and Cash Equivalents, Sept. 30 14,146,041$ 11,064,668$ 8,206,710$ 9,763,315$ 43,180,734$ 11,717,005$ Business-type Activities - Enterprise Funds CITY OF COLLEGE STATION, TEXAS Statement of Cash Flows Proprietary Funds For the Fiscal Year Ended September 30, 2009 32 Governmental Activities Other Total Internal Enterprise Enterprise Service Electric Water Wastewater Funds Funds Funds Reconciliation of Operating Income to Net Cash Provided by Operating Activities: Operating Income 6,878,123$ 6,993,718$ 3,565,712$ 1,479,908$ 18,917,461$ 1,272,949$ Adjustments to Reconcile Operating Income to Net Cash Provided by Operating Activities: Depreciation, Bad Debt Expense, Inventory Loss 4,529,930 2,624,931 2,926,568 170,059 10,251,488 2,356,127 Provision for Uncollectible Accounts 311,778 23,399 23,228 6,698 365,103 (783) Miscellaneous Nonoperating Revenues 326,586 3,273,101 39,145 5,320 3,644,152 195,735 Miscellaneous Nonoperating Expenses (114,844) (68,306) 25,548 (50,675) (208,277) - Changes in Assets and Liabilities: Change in Accounts Receivable (1,063,661) (3,208,552) 726,167 4,401 (3,541,645) (8,889) Change in Deferred Revenues (13,820) - - (18,434) (32,254) - Change in Inventory 293,708 27,784 (65,681) 23,280 279,091 33,803 Change in Accounts Payable 1,736,402 (163,769) 272,900 45,090 1,890,623 603,041 Change in Due to Other Funds 40,000 40,000 40,000 - 120,000 - Change in Claims Payable - - - - - 143,957 Change in Accrued Liabilities 26,297 4,566 16,083 13,903 60,849 (14,935) Change in Refundable Deposits 37,422 14,153 - 3,029 54,604 - Change in Accrued Vacation 9,895 (13,158) 37,068 6,862 40,667 (16,388) Total Adjustments 6,119,693 2,554,149 4,041,026 209,533 12,924,401 3,291,668 Net Cash Provided by Operating Activities 12,997,816$ 9,547,867$ 7,606,738$ 1,689,441$ 31,841,862$ 4,564,617$ Noncash Operating, Financing, Capital and Investing Activities: During the Fiscal Year the Enterprise Fund added contributed capital in the amount of $6,846,033. Adjustments at 9/30/09 to investments to record income accrual and fair value changes were as follows: Enterprise Fund $122,957 and Internal Service Funds 34,175. The notes to the financial statements are an integral part of this statement. Business-type Activities - Enterprise Funds CITY OF COLLEGE STATION, TEXAS Statement of Cash Flows Proprietary Funds For the Fiscal Year Ended September 30, 2009 33 34 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2009 City of College Station, Texas I. Summary of Significant Accounting Policies A. Financial Reporting Entity The City of College Station, Texas ("City"), the financial reporting entity presented in these financial statements, was incorporated in 1938 and is a municipal corporation incorporated under the provisions of H.B. 901 of the Texas Legislature. The City operates under a Council- Manager form of government and provides such services as authorized by its charter to advance the welfare, health, comfort, safety and convenience of the City and its inhabitants. The City of College Station entered into a joint venture in 1990 with the City of Bryan, Texas creating the Brazos Valley Solid Waste Management Agency ("BVSWMA"). BVSWMA was formed to combine landfill operations for the two cities. It is subject to joint control, and each City reports a 50% interest in BVSWMA. The City's equity interest in BVSWMA is reported in the Sanitation Fund. (See Note V-C). The financial statements of the City have been prepared in conformity with generally accepted accounting principles ("GAAP") as applied to state and local governments. The more significant of the City's accounting policies are described below. B. Government-Wide and Fund Financial Statements The government-wide financial statements (e.g., the statement of net assets and the statement of activities) report information on all of the activities of the City. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses for a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include (1) charges to customers or applicants who purchase, use, or directly benefit from goods, services or privileges provided by a given function or segment and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. C. Measurement Focus, Basis of Accounting and Financial Statement Presentation Measurement focus refers to what is being measured; basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurement made, regardless of the measurement focus applied. The government-wide financial statements and fund financial statements for proprietary funds are reported using the economic resources measurement focus and the accrual basis of accounting. The economic resources measurement focus means all assets and liabilities (whether current or noncurrent) are included on the statement of net assets and the operating statements present increases (revenues) and decreases (expenses) in net total assets. 35 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2009 City of College Station, Texas Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized as soon as they are both measurable and available. “Measurable” means the amount of the transaction can be determined and “available” means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The City considers revenues to be available if they are collected within 30 days of the end of the current fiscal period. Expenditures are generally recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to vacation, claims, and judgments, are recorded only when payment is due. Property taxes, other local taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and, therefore, have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when the City receives cash. The City reports the following major governmental funds: The General Fund is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. All general tax revenues and other receipts that are not restricted by law or contractual agreement to some other fund are accounted for in this fund. General operating expenditures, fixed charges and capital improvement costs that are not paid through other funds are paid from the General Fund. During the fiscal year, the City re-organized its fund structure to classify certain funds previously classified as General Fund as Special Revenue Fund. Please refer to the Supplementary Information for a reconciliation of the General Fund as previously reported to the General Fund as currently reported. The Debt Service Fund accounts for the financial resources that are restricted, committed, or assigned to expenditure for the payment of principal and interest on long-term debt paid primarily from taxes levied by the City. Financial resources that are being accumulated for principal and interest in future years are also reported in the Debt Service Fund. The City reports the following major proprietary funds: The Electric Fund accounts for the activities necessary to provide electric services to the residents of the City. These activities include administration, distribution system operations and maintenance, transmission system operations and maintenance, new construction, and financing and related debt service. Billing and collection services are accounted for as an internal service fund. The Water Fund accounts for the activities necessary to provide water services to the residents of the City. These activities include administrative services, water production and distribution system operations and maintenance, new construction, financing and related debt service. Billing and collection services are accounted for as an internal service fund. 36 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2009 City of College Station, Texas The Wastewater Fund accounts for the activities necessary to provide sewer collection and treatment services to the residents of the City. These activities include administrative services, wastewater system operations and maintenance, new construction, financing and related debt service. Billing and collection services are accounted for as an internal service fund. Additionally, the City reports the following fund types: Internal Service Funds account for activities related to the operation and maintenance of the City's radio and telephone systems; administration of health insurance provided to City employees; the City's risk management activities, including general liability, unemployment, and workers' compensation claims and associated administrative expenses on a cost reimbursement basis; utility billing and collection activities related to the City's electric, water, and wastewater utilities and residential and commercial garbage collection; activities related to the management of the City's vehicles and heavy equipment, including preventative maintenance and vehicle repair; and activities related to the purchase and replacement of vehicles and large motorized equipment, telephone and radio systems, and technological infrastructure equipment not budgeted in other funds. In the fiscal year ended September 30, 2009, the City adopted the Governmental Accounting Standards Board Statement (GASBS) number 54, “Fund Balance Reporting and Governmental Fund Type Definitions.” The following descriptions of Special Revenue, Capital Projects and Permanent Funds are based on the direction given by GASBS 54. Special Revenue Funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects. The term proceeds of specific revenue sources establishes that one or more specific restricted or committed revenues should be the foundation for a special revenue fund. The restricted or committed proceeds of specific revenue are expected to continue to comprise a substantial portion of the inflows reported in the fund. During the fiscal year, the City re-organized its fund structure to classify certain funds previously classified as General Fund as Special Revenue Funds. These funds (and their restricting legislation) include the Court Technology Fee Fund (Texas Code of Criminal Procedure, Article 102.0172), the Court Security Fee Fund (Texas Code of Criminal Procedure, Article 102.017), the Juvenile Case Manager Fee Fund (Texas Code of Criminal Procedure, Article 102.0174), and the Police Seizure Fund (federal law and Public Health Laws, Title 71, Article 4476-15, Section 503). Capital Projects Funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets. Capital projects funds exclude those types of capital-related outflows financed by proprietary funds. During the fiscal year, the City reclassified as Special Revenue Funds certain funds previously reported as Capital Projects Funds. Permanent Funds are used to account for and report resources that are restricted to the extent that only earnings, and not principal, may be used for purposes that support the reporting government’s programs – that is, for the benefit of the government or its citizenry. In the fiscal year ended September 30, 2009, the City reclassified to Special Revenue Funds the Cemetery Perpetual Care Funds that they had reported in prior years as Permanent Funds. 37 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2009 City of College Station, Texas Private sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both the government-wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. Governments also have the option of following subsequent private sector guidance for their business-type activities and enterprise funds, subject to this same limitation. The City has elected to not follow subsequent private sector guidance. In general, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this rule are payments-in-lieu of taxes, indirect costs and franchise fees, and other charges between the City's Electric, Water, and Wastewater Funds because elimination of these charges would distort the direct costs and program revenues reported in the Statement of Activities. Amounts reported as program revenues include (1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services in connection with the fund's principal ongoing operations. The principal operating revenues of the City's enterprise and internal service funds are charges for customer services including electric, water, wastewater, and sanitation fees, equipment purchase amounts, and risk management charges. Operating expenses for enterprise funds and internal service funds include the cost of services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, and then unrestricted resources as they are needed. D. Assets, Liabilities, and Net Assets or Equity Cash and Cash Equivalents Cash and cash equivalents are short term highly liquid investments that are (a) readily convertible to known amounts of cash and (b) so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Therefore, for purposes of the statement of cash flows, cash and cash equivalents (including restricted assets) include demand accounts, investment pools, money market mutual funds, and agency securities notes with original maturities of three months or less when purchased. All cash, except for petty cash accounts, is deposited with the City's depository bank in interest bearing accounts or is invested. The City uses a pooling method to account for cash and cash equivalents. Equity in cash and cash equivalents and interest income from the cash pool is allocated to the participating funds on a monthly basis. The amount of the allocation is determined by calculating a ratio of each fund's equity in the pool to the total pool. 38 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2009 City of College Station, Texas Investments Investments are made in accordance with the City's Investment Policy which was adopted by the City Council in October 2008. This policy is applicable to all City funds and permits investment in obligations of the U.S. Government or its agencies, repurchase agreements, commercial paper, certificates of deposit, guaranteed investment contracts, public funds investment pools, and money market mutual funds. This policy states that the City Manager shall designate the City’s Investment Officer with whom responsibility and authority for investment transactions reside. The investments purchased under the provisions of the Investment Policy are managed to maintain liquidity for meeting the City's needs for cash and to limit potential market risks in periods of rising interest rates which depress the market value of securities. As a guideline, maturity of securities should not exceed five years for cash management purposes, with an optimum weighted average maturity of less than two years. Investments in securities of a longer maturity than two years are considered prudent for funds maintained for capital construction and debt service funds, if necessary to meet projected disbursement schedules. As a general guideline, the City’s cash management portfolio is designed with the objective of meeting, over the course of full market cycles, the average return on three-month U.S. Treasury Bills, or the average rate of federal funds, whichever is higher. These indices are considered benchmarks for riskless investment transactions and therefore comprise a standard for the portfolio's rate of return. The investment program seeks to augment rates of return above this level. In a diversified portfolio, measured losses are inevitable and must be considered within the context of the overall portfolio. The objective in investment of construction funds is at least to match inflation increases in construction costs. Active portfolio management includes the practice of selling securities prior to maturity and using the proceeds to purchase other securities. Such "swaps" are performed for a variety of valid reasons: to lengthen maturities as interest rates rise, to secure market profits and shorten maturities as interest rates fall, and to take advantage of the differences in relative yield between different types of securities and varying maturities. "Swap" analysis is the responsibility of the City's Investment Officer and the decision to execute the "swap" rests with her. To protect the portfolio from imprudent trading, no security may be sold until such time as the current market value of the security plus interest earned from date of purchase is at least equal to the purchase price of that security. State statutes authorize the City to invest in fully-insured time deposits, direct debt securities of the United States or its agencies, and fully collateralized repurchase agreements. The repurchase agreements must be purchased pursuant to a master repurchase agreement which specifies that the transaction be held in a safekeeping account subject to the control and custody of the City. Investments in security repurchase agreements may be made only with the City's depository bank, with state or national banks domiciled in the state of Texas, or with securities dealers reporting to the Federal Reserve Bank of New York ("Primary Dealers"). All securities are purchased delivery-vs.-payment and held in the City's name in a safekeeping account at The Bank of New York. Investments of all funds consist mainly of Agency securities, a money market mutual fund with Fidelity, and investments in Texpool’s public funds investment pool. Investments are stated at fair value in accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools. 39 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2009 City of College Station, Texas The City also uses a pooling method to account for investments. Equity in investments and interest income from the investment pool is allocated to the participating funds on a monthly basis and is determined by calculating a ratio of each fund's equity in the investment pool to the total pool. GASB Statement No. 31 provides that governmental entities may report all investments at fair value or they may elect to report certain money market investments and participating interest- earning investment contracts at amortized cost. The City has elected to report all investments at fair value. Inventories, Assets Held for Resale and Prepaid Costs Inventories are accounted for using the consumption method and are valued at year-end based on cost, with cost determined using an average cost method. Assets held for resale include redevelopment properties, properties purchased and constructed with the express intent of resale. These assets are reported at cost in the governmental funds. Cemetery plots are another example of assets held for resale in the governmental funds. City ordinance stipulates the percentage of the cemetery plot sale to be allocated to the operational fund. These assets held for resale in the non-major governmental Community Development and Cemetery funds are reported as inventory in the financial statements. With construction of the City’s new Memorial Cemetery and Aggie Field of Honor finalizing in fiscal year 2009, the actual inventory of cemetery plots was adjusted out of construction in progress in the conversion of the fund statements to the government wide statements. Payments made to vendors for services that will benefit periods beyond September 30, 2009, are recorded as prepaid costs with a reserve for prepaid items recognized in the governmental funds in the fund level financial statements to signify that a portion of fund balance is not available for other subsequent expenditures. Interfund Transactions and Receivables/Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as "due to/from other funds." Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances." Transactions between Funds The City allocates an indirect cost percentage of administrative services paid through the General Fund along with other indirect costs deemed necessary for the operation of the proprietary funds, internal service funds and the other governmental funds. During the Year ended September 30, 2009, the City allocated $3,842,917 as a transfer for such services. Restricted Assets In the Enterprise Funds, proceeds of utility revenue bonds and certificates of obligation, as well as resources set aside for their repayment, are classified as restricted assets on the balance sheet because their use is limited by applicable bond covenants. In addition, customer utility deposits are classified as restricted assets because the deposit remains the property of the 40 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2009 City of College Station, Texas customer and is not available for operations. In the General Fund, restricted assets are comprised of Municipal Court cash bonds. Investment in Joint Venture The Proprietary Funds' investment in joint venture is recorded using the equity method of accounting. Required disclosures concerning the joint venture are presented in Note V-C. Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business- type activities columns in the government-wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of three years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. Assets owned by the electric utility are capitalized in accordance with Federal Energy Regulatory Commission (FERC) guidelines. Furthermore, assets owned by either the water or wastewater utilities are capitalized in accordance with the National Association of Regulatory Utility Commissioners (NARUC) guidelines. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend the asset's useful life are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. In accordance with Financial Accounting Standards Board Statement No. 71, interest is not capitalized during construction of capital assets of business-type activities because interest is recovered currently in the City's established rate structure. Depreciation of all assets is recorded and calculated using the straight-line method over the following estimated useful lives: Electric System 1-50 Years Water System 2-50 Years Wastewater System 2-50 Years Infrastructure 10-50 Years Buildings and Building Improvements 5-50 Years Land Improvements 10-45 Years Machinery and Equipment 5-20 Years Motor Vehicles 3-12 Years Furniture, Fixtures and Office Equipment 5-20 Years Compensated Absences Employees are credited with vacation at rates of 10 to 20 days per year, depending upon length of service. Carryover of unused vacation time from one year to the next is allowed for a maximum of two years. Upon termination, the respective employees are paid for any accrued vacation not taken (up to the two-year maximum). Accumulated vacation is accrued when earned in the government-wide and proprietary fund financial statements. No liability has been recorded in the governmental fund financial statements. Employees are credited with sick leave at the rate of one day per month. There is no maximum to the number of sick days that each employee can accumulate. Because the City does not 41 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2009 City of College Station, Texas pay employees for unused accumulated sick leave, no related liability has been recorded in the financial statements. Long-Term Obligations In the government-wide financial statements and in the fund financial statements for the proprietary fund types, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund statement of net assets. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discount and deferred amounts on refundings. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Fund Equity In the fund financial statements, governmental funds report fund balance classifications that comprise a hierarchy based primarily on the specific purposes for which amounts in those funds can be spent. In the fiscal year ended September 30, 2009, the City adopted the Governmental Accounting Standards Board Statement (GASBS) number 54, “Fund Balance Reporting and Governmental Fund Type Definitions.” GASBS 54 provides for and the City uses the following classifications: Nonspendable Fund Balance includes amounts that cannot be spent because they are not in spendable form. The “not in spendable form” criterion includes items that are not expected to be converted to cash, for example, inventories and prepaid amounts. It also includes the long- term amount of loans receivable as well as property acquired for resale. Restricted Fund Balance is reported when constraints placed on the use of resources are either (a) externally imposed by creditors, grantors, contributors, or laws or regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation. Committed Fund Balance includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the government’s highest level of decision- making authority. These committed amounts cannot be used for any other purpose unless the government removes or changes the specified use by taking the same type of action (for example, resolution or ordinance) it employed to previously commit these amounts. Assigned Fund Balance includes amounts that are constrained by the government’s intent to be used for specific purposes, but are neither restricted nor committed. Intent is expressed by the governing body itself or a body (a budget or finance committee, for example) or official to which the governing body has delegated the authority to assign amounts to be used for specific purposes. Assignments may not result in a deficit in Unassigned Fund Balance. Unassigned Fund Balance is the residual classification for the General Fund. This classification represents fund balance that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the General Fund. In other 42 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2009 City of College Station, Texas governmental funds, if expenditures incurred for specific purposes exceeded the amounts restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance. E. Budgetary Control The City follows these procedures in establishing the budgetary data: 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 for financing them. 2. All budget requests are compiled by the Office of Budget and Strategic Planning and then presented with comparative and supporting data to the Mayor and City Council for review. 3. Public hearings are properly advertised and conducted at City Hall for taxpayer comments. 4. Prior to September 27, the budget is legally enacted through passage of an ordinance. 5. The City Council must approve all transfers of budgeted amounts between departments within any fund and any revision that alters the total expenditures of any fund. An amount is also budgeted each year for contingencies which may arise. The Council has authorized the City Manager to make budget transfers for contingencies if the amount does not exceed $15,000. All other transfers must be approved by City Council. City Council may transfer amounts among individual budget line items within major expenditure categories during the year, but no such transfer may increase the overall total budget. Budgeted amounts as originally adopted were not significantly changed by such transfers during the year. 6. In accordance with the City Charter, the budget may be amended after the following conditions are met: (a) The City Manager certifies that there are available revenues in excess of those estimated in the budget. (b) The City Council holds a public hearing on the supplemental appropriation. (c) The City Council approves the supplemental appropriation. Management may not amend the budget without seeking the approval of the City Council. F. Budget Basis of Accounting The City prepares its annual budget on a basis (budget basis) which differs from a GAAP basis. The budget and all transactions are presented in accordance with the City’s method (budget basis) in the Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual - General Fund to provide a meaningful comparison of actual results with the budget. The differences between budget and GAAP basis in the General Fund are that reimbursements and transfers of indirect costs are shown as Reimbursed Administration. In the budgets for the Community Development fund, a nonmajor governmental special revenue fund, loans made to program recipients are treated as expenditures in the fund for budget purposes. Additionally, assets held for resale are treated as expenditures for budget purposes. II. Minimum Fund Balance/Operating Reserve Policies The unobligated (unassigned) fund balance in the General Fund should be at least 15% of the annual budgeted General Fund expenditures. This percentage is the equivalent of 55 days expenditure. An additional amount of 3.0% should be maintained for extraordinary items or 43 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2009 City of College Station, Texas contingencies. Cash and investments alone should be equivalent to 30 days operating expenditure. The working capital (current assets less current liabilities) in the enterprise funds should be maintained at 15% of total operating expenses or the equivalent of 55 days. Cash and Investments alone should be equivalent to 30 days of operations. 44 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2009 City of College Station, Texas III. Stewardship, Compliance, and Accountability A. Budgetary Information The Council approved four budget amendments during fiscal year 2009. These four budget amendments included the following appropriations: Fire Station # 6 (2008 GOB Project)6,990,000$ Convention Center Land Purchase (2009 CO Project)2,600,000 Skate Park (2008 GOB Project)920,000 Legal Fees 570,575 Equipment Replacement: Fire pumper, WWTP slinger truck, Sanitation 561,000 Creekview Neighborhood Park (2008 GOB Project)515,000 Neighborhood Parks Revolving Fund (2008 GOB Project)500,000 Hike and Bike Trail Completion (2008 GOB Project)333,000 CDBG Substantial Amendment 299,821 Neighborhood Parks Improvements (2008 GOB Project)290,000 Mobile Video Camera Replacement (PD)260,000 Legal Fees for BVSWMA Landfill 182,000 Victoria Avenue (2008 GOB Project)175,000 Federal grants received 297,282 Proposed Convention Center Site - O & M 150,000 Victoria Avenue 145,000 Transfer (close Northgate TIF Fund into Convention Center Fund)141,641 First Street Maintenance funds 104,498 Economic Development portion of Comprehensive Plan 100,000 Red Light Camera Vendor Service Fees 95,000 General Fund BVSWMA Landfill Costs 87,464 Vehicles: Dep. Fire Marshall, Police, Construction Inspector 83,011 W. King Cole Culvert Replacement 72,800 Police Department Scheduling - CIP (CO Project)71,300 Roadway Impact Fee Study 57,000 Water Pressure Reducing Device 50,000 Veterans Memorial contribution 50,000 Parking Garage Security Camera Upgrade 48,848 Construction Inspector Position 43,578 Parkland Zone 4 - Windwood Park 42,465 Memorial Cemetery - Aggie Field of Honor (2009 CO Project)39,689 City Hall UPS Replacement 39,018 Neighborhood Park Improvements 30,000 Broker's Fee for Sale of Fire Station #3 25,000 Credit Card Charges for Hotel Tax Payments 20,000 Parkland Zone 10 - Southern Oaks Trail/Lights 20,000 Other 61,041 16,071,031$ 45 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2009 City of College Station, Texas The Council approved four budget amendments during fiscal year 2009. These four budget amendments included the following budget reductions: CIP Department (7,014)$ Fire Department (74,757) Information Technology (75,667) General Government (83,366) Planning & Development Services (141,711) Fiscal Services (168,830) Police Department (172,855) Public Works Department (351,139) (1,075,339)$ 1. Budget appropriations are adopted at the fund level for all funds except the General Fund. In the General Fund, budget appropriations are adopted at the department level. Expenditures in excess of appropriations for each fund are prohibited by the City Charter. Appropriations that have not been expended or lawfully encumbered lapse at the end of the budget year. 2. Formal budgetary integration is legally enacted and employed as a management control device during the year for all funds. 3. Encumbrance accounting is employed in governmental funds. Encumbrances (e.g., purchase orders, contracts) outstanding at year end are reported as reservations of fund balances and do not constitute expenditures or liabilities. B. Excess of Expenditures Over Appropriations The amounts of any excesses of expenditures over appropriations during fiscal year 2009, and the funds in which they occurred are as follows: Fund Amount General Fund, Public Works Department 84,392$ General Fund, Fire Department 19,822 General Fund, Contributions 11,324 General Fund, Other 119,680 Cemetery Perpetual Care 3,423 Business Park 20,066 General Government Projects 384,991 Streets Projects 9,703,214 The expenditures in the Business Park, General Government Projects and Streets Projects were budgeted in prior years. Overall, these projects remained within budget. IV. Detailed Notes on All Funds A. Cash and Investments Cash and investments are accounted for within the pooled cash fund of the City. The City records investments at fair value in accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools. 46 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2009 City of College Station, Texas Cash and cash equivalents, investment balances and interest income are allocated to the City’s participating funds on a monthly basis. The amount of the allocation is based on each fund's proportional equity to total pooled equity. Weighted Average Fair Value Maturity (days) Bank Demand Accounts 9,806,696$ 1 Money Market Account 4,785,840 1 Certificates of Deposits 2,855,721 343 U.S. Agency Securities 24,604,183 284 Texas Local Government Investment Pool 82,753,224 1 124,805,664$ Portfolio Weighted Average Maturity 218 Interest rate risk. In accordance with the City's Investment Policy, interest rate risk is managed by limiting the weighted average maturity of the investment portfolio to two years (approximately 720 days) or less and by limiting the maximum maturity of any security purchased to five years or less. Credit risk. Investments authorized by the City’s policy are those approved by the revised State of Texas Public Funds Investment Act of 1997 and the Texas Public Collateral Act of 1989. These investments include the following:  Obligations of the United States or its agencies and instrumentalities;  Direct obligations of the State of Texas or its agencies;  Other obligations, the principal and interest on which is unconditionally guaranteed or insured by the State of Texas or the United States or its agencies;  Obligations of states, agencies, counties, cities, and other political subdivisions of any state having been rated as to investment quality by a nationally recognized investment rating firm and having received a rating of not less than “A” or its equivalent;  Certificates of deposit issued by state and national banks domiciled in Texas that are secured by obligations qualified as acceptable collateral;  Certificates of deposit issued by savings and loan associations domiciled in Texas that are secured obligations qualified as acceptable collateral;  Repurchase agreements or reverse repurchase agreements;  Commercial paper with a stated maturity of 270 days or less from the date of issuance that is rated not less than “A-1,” “P-1,” or its equivalent;  Money market mutual funds that are SEC registered no-load funds with dollar- weighted average portfolio maturity of 120 days or less;  Guaranteed investment contracts; or  Public funds investment pools. 47 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2009 City of College Station, Texas As of September 30, 2009 the City’s investments were rated by Standard & Poor's and Moody's as follows: S&P Moody's Texpool AAAm N/A* Federal Home Loan Bank AAA Aaa Federal National Mortgage Association AAA Aaa Federal Farm Credit Bank AAA Aaa *Texpool is only rated by S&P. Credit concentration. With the exception of U.S. Treasury securities and authorized pools, the City's Investment Policy limits the investment in a single security type or with a single financial institution to 30%. It also limits the overall investment in Federal Agency securities to 70%. At September 30, 2009 the issuers whose securities represented more than 5% of the City's investment portfolio were as follows: the Federal Home Loan Bank (13%) and the Federal Farm Credit Bank (11%). Custodian credit risk - deposits. In the case of deposits, this is the risk that in the event of a bank failure, the government's deposits may not be returned to it. The City of College Station's City Council has approved a depository services contract which governs its depository relationship. This contract requires that deposits not covered by depository insurance be collateralized at 105%. Custodian credit risk - investments. For an investment, this is the risk that, in the event of the failure of the counterparty, the government will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The City's investment portfolio requires that all security transactions be conducted on a Delivery-vs.- Payment basis and that all securities be held by a third party custodian and evidenced by safekeeping receipts. B. Receivables Receivables as of year end for the City's individual major funds and nonmajor and internal service funds in the aggregate, including the applicable allowances for uncollectible accounts, are as follows: 48 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2009 City of College Station, Texas Internal Governmental Activities:Debt Service Fund General Service Nonmajor Allocation Total Taxes: Property 333,179$ 339,494$ -$ -$ 672,673$ Beverage 96,503 - - - 96,503 Sales 1,501,096 - - - 1,501,096 Subtotal Taxes 1,930,778 339,494 - - 2,270,272 Accrued Interest 24,093 8,912 94,168 33,234 160,407 Grants 29,791 - 185,719 - 215,510 Accounts/Charges for Services 2,719,748 - 1,014,531 29,690 3,763,969 Loans 539,174 539,174 Miscellaneous 28,229 - - 14 28,243 Total Gross Governmental 4,732,639 348,406 1,833,592 62,938 6,977,575 Less Allowance for Uncollectible Accounts (17,416) - (99,897) - (117,313) Net Total Receivables 4,715,223$ 348,406$ 1,733,695$ 62,938$ 6,860,262$ Business-type Activities:Internal Service Fund Electric Water Wastewater Nonmajor Allocation Total Accrued Interest 38,539$ 138,498$ 23,423$ 27,819$ 177$ 228,456$ Accounts/Charges for Services 12,061,132 4,851,498 1,551,669 1,008,692 47,247 19,520,238 Miscellaneous 1,116,308 - - - 14,129 1,130,437 Total Gross Business-type 13,215,979 4,989,996 1,575,092 1,036,511 61,553 20,879,131 Less Allowance for Uncollectible Accounts (2,378,555) (117,194) (204,416) (122,229) (24,028) (2,846,422) Net Total Receivables 10,837,424$ 4,872,802$ 1,370,676$ 914,282$ 37,525$ 18,032,709$ Loans Receivable are made up of a $500,000, 40-year loan of HOME Investment Partnership (HOME) funds for Santour Court, an affordable, single-family residential development and $39,174 in HOME down-payment assistance loans for eligible HOME participants. Governmental funds report deferred revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have been received but not yet earned. As of fiscal year end, the various components of deferred revenue and unearned revenue reported in the governmental funds were as follows: Unavailable Unearned Total Property Tax 672,673$ -$ 672,673$ Hotel Occupancy Tax 241,906 - 241,906 Paving Assessments 373,512 - 373,512 Intergovernmental - 92,235 92,235 Fines and Penalties - 196,868 196,868 Emergency Services 2,320,679 - 2,320,679 Cemetery Plot Sales 50,833 3,600 54,433 Other 24,895 44,457 69,352 3,684,498$ 337,160$ 4,021,658$ 49 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2009 City of College Station, Texas C. Capital Assets Capital asset activity for the year ended September 30, 2009 was as follows: Beginning Ending Governmental Activities Balance Increases Decreases Adjustments Balance Capital Assets, Not Being Depreciated Land 29,957,616$ 7,388,235$ (37,000)$ - 37,308,851$ Construction in Progress 28,745,230 31,957,932 (29,100,245) (9,805,788) 21,797,129 Total Capital Assets, Not Being Depreciated 58,702,846 39,346,167 (29,137,245) (9,805,788) 59,105,980 Capital Assets, Being Depreciated Buildings and Building Improvements 25,568,483 3,090,322 (358,011) - 28,300,794 Improvements Other Than Buildings 24,122,568 7,903,363 - - 32,025,931 Machinery and Equipment 33,613,703 4,594,188 (902,164) (4,913,462) 32,392,265 Infrastructure 187,300,971 11,786,595 - - 199,087,566 Total Capital Assets, Being Depreciated 270,605,725 27,374,468 (1,260,175) (4,913,462) 291,806,556 Less Accumulated Depreciation for: Buildings and Building Improvements 7,199,225 605,350 (110,387) - 7,694,188 Improvements Other Than Buildings 9,672,364 1,090,357 - - 10,762,721 Machinery and Equipment 22,014,455 3,276,180 (902,164) (3,906,921) 20,481,550 Infrastructure 90,590,336 6,550,149 - - 97,140,485 Total Accumulated Depreciation 129,476,380 11,522,036 (1,012,551) (3,906,921) 136,078,944 Total Capital Assets Being Depreciated, Net 141,129,345 15,852,432 (247,624) (1,006,541) 155,727,612 Governmental Type Activities Capital Assets, Net 199,832,192$ 55,198,599$ (29,384,869)$ (10,812,329)$ 214,833,592$ Beginning Ending Business-Type Activities Balance Increases Decreases Adjustments Balance Capital Assets, Not Being Depreciated Land 690,707$ -$ -$ -$ 690,707$ Construction in Progress 67,837,422 16,949,721 (15,221,032) (4,330) 69,561,781 Total Capital Assets, Not Being Depreciated 68,528,129 16,949,721 (15,221,032) (4,330) 70,252,488 Capital Assets, Being Depreciated Electric System 127,000,067 6,591,958 (364,286) 1,870,424 135,098,163 Water System 85,317,354 6,341,382 (140,636) 649,437 92,167,537 Wastewater System 82,210,377 8,614,815 (107,225) 1,911,438 92,629,405 Buildings and Building Improvements 5,743,755 - - - 5,743,755 Machinery and Equipment 588,233 48,848 - - 637,081 Total Capital Assets, Being Depreciated 300,859,786 21,597,003 (612,147) 4,431,299 326,275,941 Less Accumulated Depreciation for: Electric System 54,419,112 4,585,907 (223,293) 1,517,147 60,298,873 Water System 28,044,156 3,978,507 (1,061,185) 115,417 31,076,895 Wastewater System 26,142,138 2,926,568 - 1,080,787 30,149,493 Buildings and Building Improvements 995,437 94,813 - - 1,090,250 Machinery and Equipment 473,002 75,246 - - 548,248 Total Accumulated Depreciation 110,073,845 11,661,041 (1,284,478) 2,713,351 123,163,759 Total Capital Assets Being Depreciated, Net 190,785,941 9,935,962 672,331 1,717,948 203,112,182 Business Type Activities Capital Assets, Net 259,314,070$ 26,885,683$ (14,548,701)$ 1,713,618$ 273,364,670$ 50 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2009 City of College Station, Texas During the fiscal year, capital assets previously capitalized in the Internal Service Equipment Replacement Fund were adjusted into the Utility Fund that owns the asset. Sanitation assets will similarly be adjusted in the next fiscal year. Also, the City adjusted the governmental construction in progress for value of the cemetery plots now for sale in the City’s new Memorial Cemetery and Aggie Field of Honor. Depreciation expense was charged to governmental activities of the City as follows: Governmental Activities Planning and Development Services 5,119$ Fire 168,119 Fiscal Services 33,556 General Government 170,743 Information Services 247,848 Parks and Recreation 916,798 Library 48,067 Police 89,222 Public Works 6,697,363 Non-departmental 789,074 Capital Assets Held by the City's Internal Service Funds 2,356,127 Total Depreciation Expense 11,522,036$ 51 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2009 City of College Station, Texas D. Interfund Transactions Transfers between funds during the year were as follows: Governmental Business-type Transfers In Transfers Out Activities, net Activities, net Governmental Activities: General Fund 15,047,102$ (9,700)$ 15,037,402$ -$ Debt Service Fund 180,350 (285,548) (105,198) - Nonmajor Governmental Funds: Special Revenue Funds: Court Technology - (3,747) (3,747) - Police Seizure - (501) (501) - Northgate TIF - (141,641) (141,641) - Hotel Occupancy Tax - (7,000,000) (7,000,000) - Community Development - (94,403) (94,403) - Wolf Pen Creek TIF 8,515 - 8,515 - Convention Center 7,141,641 (130,671) 7,010,970 - Parks Escrow - (9,101) (9,101) - Business Park - (250,000) (250,000) - Drainage - (419,567) (419,567) - Capital Projects Funds: General Government Projects 85,682 - 85,682 - Parks and Recreation Projects 86,961 (68,026) 18,935 - Streets Projects 130,671 (81,234) 49,437 - Business-type Activities: Enterprise Funds: Electric 721,544 (9,322,649) - (8,601,105) Water 127,880 (2,200,224) - (2,072,344) Wastewater 605,314 (2,021,938) - (1,416,624) Nonmajor Proprietary Funds: Sanitation - (885,147) - (885,147) Northgate Parking Garage 285,548 (88,970) - 196,578 Internal Service Funds: Communications - (313,913) (313,913) - Equipment Replacement - (1,093,259) (1,093,259) - Fleet Maintenance - (969) (969) - - 24,421,208$ (24,421,208)$ 12,778,642$ (12,778,642)$ Transfers are used to (1) move revenues from the funds with collection authorization to the debt service fund as debt service principal and interest payments become due, (2) move revenues from enterprise funds to the general fund to record the return on the investment, (3) move revenues from enterprise funds to the general fund for economic development activity, (4) move unrestricted general fund revenues to finance various programs that the government must account for in other funds in accordance with budgetary authorizations. 52 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2009 City of College Station, Texas The composition of due to/due from balances as of September 30, 2009 is as follows: Business-type Governmental Activities:Activities: Due To Due From Amount Water Fund Economic Development 40,000$ Wastewater Economic Development 40,000$ Electric Fund Economic Development 40,000$ Advance From Advance To Amount Water Fund Economic Development 120,000$ Wastewater Economic Development 120,000$ Electric Fund Economic Development 120,000$ Internal loans (inter-fund advances) of $200,000 each from the Water, Wastewater and Electric Funds to the Economic Development Fund were recorded during the fiscal year ended September 30, 2008. The loans partially funded the purchase of real property related to an economic development project and are repayable in even installments over five years. E. Deferred Charges See Note IV B. F. Prior Period Adjustment The outstanding portion of City’s 2000A Certificates of Obligation funded business-type activities in the Northgate Parking Fund. A prior period adjustment was made to reflect $4,820,000 in Northgate Parking Fund Certificates of Obligation and to reduce beginning net assets by those amounts. Long-term debt reflects this change as of the beginning of the fiscal year. During the fiscal year ending September 30, 2009, the City finalized a 40-year $500,000 loan of HOME Investment Partnership (HOME) Program funds for Santour Court, an affordable, single- family residential development. $406,250 of this $500,000 was disbursed in a prior period and is reflected as a prior period adjustment in the Community Development Fund, a non-major governmental fund. As a part of its HOME Investment Partnership (HOME) Program, the City purchases land and builds homes for sale to low to moderate income program-qualified individuals and families. $170,330 of the $320,480 assets held for re-sale were acquired in prior periods and is reflected as a prior period adjustment in the Community Development Fund, a non-major governmental fund. 53 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2009 City of College Station, Texas G. Long-Term Debt A summary of long-term debt transactions, including current portion, for the year ended September 30, 2009 is as follows: Amounts Beginning Incurred/ Matured/ Ending Due Within Balance Issued Retired Balance One Year Governmental Activities: General Obligation Bonds 60,695,000$ 3,335,000$ 4,885,000$ 59,145,000$ 4,100,000$ Certificates of Obligation 35,145,000 6,480,000 3,050,000 38,575,000 3,950,000 Accrued Vacation 2,362,575 1,388,793 1,224,640 2,526,728 171,365 Governmental Activity Long Term Debt 98,202,575$ 11,203,793$ 9,159,640$ 100,246,728$ 8,221,365$ Business Type Activities: Certificates of Obligation 28,640,000$ 24,835,000$ 1,190,000$ 52,285,000$ 1,945,000$ Utility Revenue Bonds 99,560,000 5,805,000 93,755,000 6,010,000 Accrued Vacation: Electric Fund 189,287 188,748 178,853 199,182 9,958 Water Fund 82,264 44,092 57,250 69,106 3,455 Sewer Fund 83,685 113,560 76,493 120,752 6,038 Other 119,645 114,909 108,314 126,240 6,312 Business Type Activity Long Term Debt 128,674,881$ 25,296,309$ 7,415,910$ 146,555,280$ 7,980,763$ Internal service funds predominantly serve the governmental funds. All internal service funds, except for the utility customer service fund, are included as part of the above totals for governmental activities. At year end $44,475 of internal service funds’ accrued vacation was included in governmental activities, and $59,151 of accrued vacation for the utility customer service fund was included in business type activities. For the governmental activities, accrued vacation is generally liquidated by the general fund. Long-term debt at September 30, 2009 includes the following individual issues (not including unamortized premiums or discounts): 54 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2009 City of College Station, Texas Interest Issue Maturity Original Net Rate (%) Date Date Issue Retirement Outstanding General Obligation Bonds: 1998 Issue 4.65-4.85 4/1/98 2/15/11 6,200,000$ 5,460,000$ 740,000$ 1999 Issue 4.25-5.00 4/15/99 2/15/17 6,230,000 2,765,000 3,465,000 2000 Issue 5.00-5.20 4/1/00 2/15/11 8,460,000 7,595,000 865,000 2001 Issue 4.00-5.50 8/1/01 2/15/17 4,140,000 2,370,000 1,770,000 2002 Issue 4.25-5.125 3/1/02 2/15/21 6,445,000 2,050,000 4,395,000 2003 Issue 3.00-4.50 7/1/03 2/15/23 4,790,000 950,000 3,840,000 2004 Issue 2.875-5.00 5/1/04 2/15/24 12,940,000 3,975,000 8,965,000 2005 Issue 4.00-6.00 5/1/05 2/15/25 5,710,000 1,095,000 4,615,000 2006 Issue 4.375-6.375 7/1/06 2/15/26 7,375,000 1,220,000 6,155,000 2006 Issue - Refunding 4.00-5.00 12/1/06 2/15/18 10,255,000 80,000 10,175,000 2007 Issue 4.25-6.25 9/1/07 2/15/27 3,930,000 1,240,000 2,690,000 2008 Issue 4.0 - 5.0 9/1/08 2/15/28 9,455,000 1,320,000 8,135,000 2009 Issue 3.5 - 4.0 7/15/09 2/15/21 3,335,000 - 3,335,000 89,265,000$ 30,120,000$ 59,145,000$ Certificates of Obligation - Governmental Activities: 2000 Issue 5.00-5.125 4/1/00 2/15/10 4,050,000$ 3,885,000$ 165,000$ 2000A Issue 4.75-5.50 8/1/00 2/15/20 1,715,000 1,715,000 - 2001 Issue 4.00-5.00 8/1/01 2/15/20 3,650,000 2,520,000 1,130,000 2002 Issue 4.25-5.125 3/1/02 2/15/20 14,480,000 6,635,000 7,845,000 2003A Issue 2.90-4.20 7/1/03 2/15/23 780,000 155,000 625,000 2004 Issue 2.875-5.00 5/1/04 2/15/24 500,000 500,000 - 2005 Issue 3.00-4.50 5/1/05 2/15/25 7,595,000 3,940,000 3,655,000 2006 Issue 4.375-6.375 7/1/06 2/15/26 8,325,000 1,510,000 6,815,000 2007 Issue 4.25-6.25 9/1/07 2/15/27 3,960,000 1,240,000 2,720,000 2008 Issue 3.25 - 5.0 9/1/08 2/15/28 10,515,000 1,375,000 9,140,000 2009 Issue 3.00-5.00 7/15/09 2/15/29 6,480,000 - 6,480,000 62,050,000$ 23,475,000$ 38,575,000$ Certificates of Obligation - Business-type Activities: 2000A Issue 4.75-5.50 8/1/00 2/15/20 6,385,000$ 1,855,000$ 4,530,000$ 2004 Issue 2.875-5.00 5/1/04 2/15/24 8,915,000 1,380,000 7,535,000 2008 Issue 3.25 - 5.0 9/1/08 2/15/28 15,925,000 540,000 15,385,000 2009 Issue 3.00-5.00 7/15/09 2/15/29 24,835,000 - 24,835,000 56,060,000$ 3,775,000$ 52,285,000$ Utility Revenue Bonds: 1998 Issue 4.65-4.80 4/1/98 2/1/10 2,700,000 2,545,000 155,000$ 2000 Issue 5.00-5.25 4/1/00 2/1/12 10,500,000 8,655,000 1,845,000 2001 Issue 4.50-5.50 8/1/01 2/1/21 23,500,000 6,445,000 17,055,000 2002 Issue 4.00-6.00 3/1/02 2/1/22 18,215,000 4,350,000 13,865,000 2003 Issue - Refunding 3.50-4.25 12/1/02 2/1/14 11,160,000 6,130,000 5,030,000 2003A Issue 2.50-4.25 7/1/03 2/1/23 4,850,000 975,000 3,875,000 2005 Issue 4.00-5.50 5/1/05 2/1/25 8,035,000 910,000 7,125,000 2005A Issue - Refunding 3.00-5.25 8/1/05 2/1/18 12,995,000 1,150,000 11,845,000 2006 Issue 4.375-6.375 7/1/06 2/1/26 16,950,000 1,510,000 15,440,000 2007 Issue 4.00-5.75 9/1/07 2/1/27 18,665,000 1,145,000 17,520,000 127,570,000$ 33,815,000$ 93,755,000$ 55 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2009 City of College Station, Texas The annual requirements to amortize debt outstanding as of September 30, 2009 are as follows. Due to the nature of the obligation for accrued vacation, annual requirements to amortize such obligations are not determinable and have not been included in the following summary: Governmental Activities General Obligation Certificates of Obligation Year Ended September 30, Principal Interest Principal Interest 2010 4,100,000$ 2,547,932$ 3,950,000$ 1,604,528$ 2011 4,430,000 2,211,104 1,900,000 1,483,458 2012 4,590,000 2,005,743 1,990,000 1,402,610 2013 4,525,000 1,810,095 2,100,000 1,319,685 2014 4,360,000 1,617,975 2,200,000 1,230,871 2015-2019 18,710,000 5,946,886 11,420,000 4,661,339 2020-2024 12,750,000 2,683,364 9,095,000 2,307,072 2025-2029 5,680,000 470,527 5,920,000 507,754 59,145,000$ 19,293,626$ 38,575,000$ 14,517,317$ Business-Type Activities Utility Revenue Certificates of Obligation Year Ended September 30, Principal Interest Principal Interest 2010 6,010,000$ 4,283,347$ 1,945,000$ 2,172,994$ 2011 6,220,000 3,975,141 2,165,000 2,073,325 2012 6,450,000 3,660,301 2,280,000 1,994,688 2013 6,700,000 3,344,634 2,395,000 1,910,482 2014 6,715,000 3,026,123 2,515,000 1,821,672 2015-2019 31,170,000 10,570,746 13,770,000 7,516,406 2020-2024 23,020,000 3,988,294 14,510,000 4,499,311 2025-2029 7,470,000 430,379 12,705,000 1,396,494 93,755,000$ 33,278,965$ 52,285,000$ 23,385,372$ The City intends to retire all of its general long-term liabilities, plus interest, from ad valorem taxes. The proprietary fund type long-term debt will be repaid, plus interest, from the operating revenues of the Electric, Water, and Wastewater Funds. General Obligation Bonds and Certificates The City issues General Obligation Bonds and Certificates of Obligation to provide funds for the acquisition and construction of major capital facilities. These types of bonds have been issued by the City for both governmental activities as well as business-type activities. These bonds are reported in the proprietary funds if they are expected to be repaid from proprietary fund revenue. General Obligation Bonds are direct obligations, for which the City has pledged the full faith and credit of the City. These bonds generally are issued as 20-year serial bonds with varying amounts of principal maturing each year. The City is required by bond covenants to create from ad valorem tax revenues a sinking fund sufficient to pay the current interest and principal installments as they become due. In addition to the sinking fund, there are a number of limitations and restrictions contained in the various 56 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2009 City of College Station, Texas general obligation bonds and certificate indentures. The City is in compliance with the significant limitations and restrictions at September 30, 2009. On July 9, 2009, the City issued $3.335 million in General Obligation Bonds, dated July 15, 2009, with a true interest cost of 4.1989%. The proceeds from the sale of the bonds will be used to (1) pay for costs of construction and acquisition of and improvements to City streets, sidewalks, hike and bike trails, traffic signals and control systems, parks and park facilities improvements, construction of improvements to the City’s fire stations and (2) pay the costs incurred in connection with the issuance of the Bonds. On July 9, 2009, the City issued $31.315 million in Certificates of Obligation, dated July 15, 2009, with a true interest cost of 4.1421%. The proceeds from the sale of the Certificates will be used to (1) pay for the acquisition of land to be used for municipal purposes, including, but not limited to, a site for a convention center, design and planning for the construction of a convention center, construction of a new landfill, acquisition of technology improvements and equipment; (2) fund electric, water, and wastewater system improvements and (3) to pay costs incurred in connection with the issuance of the Certificates. Revenue Bonds Utility system revenue bonds are secured by the net revenues of the Electric, Water, and Wastewater Funds as defined in the respective bond indentures. The City pledges income derived from the acquired or constructed assets to pay the debt service. In addition, the City is required to maintain debt service funds and bond reserve funds for all outstanding revenue bonds. Amounts in the reserve fund are to be used to pay principal and interest on outstanding bonds at any time sufficient funds are not available in the bond interest and redemption fund. The bond indentures require that the City accumulate reserves of an amount equal to the average annual principal and interest requirements of all outstanding bonds secured by the net revenues of the system. Arbitrage Compliance Arbitrage provisions of the Internal Revenue Tax Act of 1986 require the City to rebate to the federal government excess arbitrage earnings from bond proceeds. As of September 30, 2009, the City did not have an arbitrage rebate liability. Defeasance In prior years, the City defeased certain revenue and refunding bonds totaling $23,810,000 and certain general obligation bonds, refunding bonds and certificates of obligation totaling $10,185,000 by placing the proceeds of the refunding bonds in an irrevocable trust to provide for all future debt service on the refunded bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the City's financial statements. The advanced refunding of Series 2006 was undertaken to reduce total general obligation and certificate of obligation debt service payments over 12 years by $651,000 and resulted in economic gain of $506,168. The advanced refunding of Utility System Revenue Series 2005A and 2003 were undertaken to reduce total utility revenue debt service payments over the next 10 and 6 years, respectively by $1,037,232 and $885,000, respectively and resulting in economic gains of $813,969 and $720,738 respectively. At September 30, 2009, the outstanding principal balance of the defeased revenue refunding bonds was $4,770,000 and the outstanding principal balance of the defeased general obligation bonds and certificates of obligation was $5,620,000. 57 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2009 City of College Station, Texas The tables below reflect refunded debt outstanding at September 30, 2009 and are net of any amounts to be paid or retired by the trustee on October 1, 2008: Refunded in Year Ended September 30, 2009 -$ Refunded in Prior Years Utility System Revenue & Refunding Bonds, Series 1993 2,500,000$ Utility System Revenue Bonds, Series 1994 8,250,000 Utility System Revenue Bonds, Series 1995 2,700,000 Utility System Revenue Bonds, Series 1996 4,260,000 Utility System Revenue Bonds, Series 1998 1,330,000 General Obligation & Refunding Bonds, Series 1996 1,860,000 General Obligation Improvement Bonds, Series 1998 2,705,000 23,605,000$ H. Reservations of Fund Balances and Net Assets Fund balances for governmental funds have been reserved at September 30, 2009 as follows: 58 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2009 City of College Station, Texas General Fund Debt Service Fund Other Total Fund Balances: Nonspendable: Assets Held for Resale -$ -$ 320,480$ 320,480$ Inventories 49,359 - - 49,359 Long Term Loans Receivable - - 539,174 539,174 Prepaids 13,031 - - 13,031 Restricted for: American Recovery and Reinvestment Act (ARRA)- - 149 149 Community and Neighborhood Parks - - 1,489,259 1,489,259 Community Development - - 729,645 729,645 Convention Center Design - - 600,000 600,000 Court Security Fee - - 209,889 209,889 Court Technology Fee - - 320,305 320,305 Debt Service - 3,901,210 - 3,901,210 Drainage - - 2,932,126 2,932,126 Educational and Governmental Access fee 95,220 - - 95,220 General Government Capital Projects - - 9,118,722 9,118,722 Hotel Occupancy Tax - - 1,939,266 1,939,266 Juvenile Case Manager - - 240,331 240,331 Parks and Recreation Capital Projects - - 1,335,947 1,335,947 Police Seizure - - 52,723 52,723 Red Light Camera - - 170,470 170,470 Street Capital Projects - - 13,747,959 13,747,959 Wolf Pen Creek TIF - - 2,587,367 2,587,367 Committed to: Business Park - - 609,113 609,113 College Station Cemetery Perpetual Care - - 1,654,570 1,654,570 Convention Center Project - - 141,641 141,641 Memorial Cemetery - - 586,347 586,347 Memorial Cemetery Perpetual Care - - 244,845 244,845 Assigned to: Crime Prevention 18,413 - - 18,413 Economic Development 1,133,823 - - 1,133,823 Efficiency Time Payment Fee 34,519 - - 34,519 Encumbrances 459,382 - - 459,382 Parks Xtra Education 17,263 - - 17,263 Unassigned:7,557,419 - 545,024 8,102,443 9,378,429$ 3,901,210$ 40,115,352$ 53,394,991$ 59 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2009 City of College Station, Texas V. Other Information A. Property Taxes Property tax is levied each October 1 on the assessed (appraised) value listed as of the prior January 1 for all real and business personal property located in the City. Taxable assessed value represents the appraisal value less applicable exemptions authorized by the City Council. Taxes are due October 1 and are delinquent after the following January 31. Tax liens are automatic and become enforceable as of January 1 of each year. Taxes become delinquent February 1 and are subject to interest and penalty charges. The tax rate to finance general governmental services including debt service was 43.94 cents per $100 of assessed valuation for the year ended September 30, 2009. Under current state statutes, the City's ability to increase the levy for property taxation is subject to a maximum rate of $2.50 per $100 valuation. The Brazos County Appraisal District ("Appraisal District") is responsible for the recording and appraisal of property for all taxing units in Brazos County. The Appraisal District is required to assess property at 100 percent of its appraised value. Real property must be reappraised at least every three years. The City may, at its own expense, require annual reviews by the Appraisal District through various appeals and, if necessary, legal action. Under this system, if the rate, excluding tax rates for bonds and other contractual obligations adjusted for new improvements, exceeds the rate for the previous year by more than eight (8) percent, qualified voters of the City may petition for an election to determine whether to limit the tax rate to no more than eight (8) percent above the tax rate of the previous year. Brazos County bills and collects the property taxes for the City. B. Risk Management A government entity, such as the City of College Station, is faced with many risks. These risks can be generally subdivided into four categories of loss: direct property loss, indirect property loss, liability loss, and personnel losses. The City employs a combination of risk management strategies to provide acceptable levels of protection regarding these potential risks. The City is self-insured for health benefits, and the plan is administered by Blue Cross Blue Shield. This activity is accounted for in the Employee Benefits Fund, which is funded monthly by contributions from employees and from the operating funds of the City. These contributions are determined based on an analysis of prior year claims and administrative costs and a forecast of future claims and administrative costs. The City has a stop-loss insurance policy that limits its liability to $100,000 per individual per year with an aggregate, annual liability of $4,724,096. The liability for outstanding losses includes $824,517 for claims incurred but not reported as of September 30, 2009. In fiscal year 2009 the City was insured by Affiliated FM, A.M. Best rated A+XV, for all of its real and personal property and mobile equipment. Affiliated FM is funded by calculated contributions from the City's operating funds and provides all of the claims handling for these lines of coverage. The City carries a deductible between $25,000 and $250,000, depending on type of loss, per occurrence on its property insurance policy with Affiliated FM. Property insurance covers all direct losses and some indirect losses. On all lines of liability coverage, the City is self-insured. The City has procured excess liability coverage through Star National Insurance Company that is A.M. Best rated A-IX. The self- 60 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2009 City of College Station, Texas insured retention ("SIR") is $250,000 per claim. The claims are handled by Risk Management staff. The City is also self-insured on its workers' compensation coverage. The City opted for excess workers' compensation coverage with a SIR of $250,000 per claim feature. The City's carrier is Star National Insurance Company, and Abercrombie, Simmons & Gillette, (AS&G) the TPA (third party administrator) handles all of the workers' compensation claims. In the event of a simultaneous liability and workers' compensation claim, only one SIR applies. Liabilities in the property and casualty fund and the workers’ compensation fund are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported. Based upon the most recent actuarial study, the City has recorded a potential liability of $390,378 in the property and casualty fund and a potential liability of $355,017 in the workers’ compensation fund. The results of the process to estimate the claims liability is not an exact amount as it depends on many complex factors, such as inflation, changes in legal doctrines, and damage awards. Accordingly, claims are reevaluated periodically to consider the effects of inflation, recent claim settlement trends (including frequency and amount of pay-outs), and other economic and social factors. Lastly, the City also uses its Unemployment Fund to account for self-insurance activity involving claims filed under unemployment compensation laws. Monthly contributions based on a percentage of payroll are determined each year during the budget process and are used to fund this activity. Settlements have not exceeded self-insured retention for each of the past three fiscal years. The liabilities for insurance claims reported in each of the funds are based on Governmental Accounting Standards Board Statement No. 10, which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and if the amount of the loss can be reasonably estimated. These liabilities include an estimate for incurred but not reported claims. Changes in the balances of claims liabilities for the self- insurance funds that are accounted for as Internal Service Funds for fiscal years 2009 and 2008 are as follows: 2009 2008 Unpaid Claims, October 1 1,405,955$ 1,186,027$ Incurred Claims (including IBNR's) 6,391,276 4,532,452 Claims Paid (6,247,319) (4,312,524) Unpaid Claims, September 30 1,549,912$ 1,405,955$ C. Joint Venture The Brazos Valley Solid Waste Management Agency (“BVSWMA”) was formed under a joint solid waste management agreement between the Cities of College Station and Bryan. College Station and Bryan agreed to cooperatively operate a joint facility for the proper disposal of solid waste for the two cities and outside customers. Each city reports a 50% ownership in BVSWMA. BVSWMA has contracted with the City of College Station to serve as landfill operator for the facility. BVSWMA is governed by a Policy Advisory Board ("Board") which is charged with providing recommendations to the City Councils of College Station and Bryan regarding the joint venture. 61 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2009 City of College Station, Texas The Board is comprised of three voting members: the Mayors of College Station and Bryan, who alternate each year as Chair, and one City Council Member from the City that is not serving as Chair. The City Managers of each City and a representative of Grimes County designated by the Commissioners Court serve as non-voting or ex-officio members of the Board. Legal oversight of BVSWMA is vested in the City Councils of the two cities. The annual budget is prepared and approved by the BVSWMA Board and adopted by both City Councils. All contracts and expenditures in excess of $50,000 and contractual change orders in excess of $25,000 require the approval of both the Bryan and College Station City Councils. The City's share of BVSWMA's change in net assets for fiscal year 2009 was $1,055,622. State and federal laws and regulations require BVSWMA to place a final cover on its Rock Prairie landfill site when it stops accepting waste and to perform certain maintenance and monitoring functions at the site for thirty years after closure. Although closure and postclosure care costs will be paid only near or after the date that the landfill stops accepting waste, BVSWMA reports a portion of these closure and postclosure care costs as an operating expense in each period based on landfill capacity used as of each balance sheet date. The $4.4 million reported as accrued postclosure maintenance costs at September 30, 2009, represents the cumulative amount reported to date based on the use of 88 percent of the estimated capacity of the landfill. BVSWMA will recognize the remaining estimated cost of closure and postclosure care of $587,000 as the remaining estimated capacity is filled. These amounts are based on what it would cost to perform all closure and postclosure care in 2009. BVSWMA expects to close the landfill in the year 2010. Actual cost may be higher due to inflation, changes in technology, or changes in regulations. On January 12, 2010, the City of Bryan, and on January 14, 2010, the City of College Station approved an Interlocal Cooperation Agreement (“ILA”) creating a local government corporation (“LGC”) which will own and manage BVSWMA. The ILA describes the process for the creation of the LGC and the development of agreements to a) create the corporation; b) transfer the assets of BVSWMA to the Corporation; and c) reimburse debt associated with the assets of BVSWMA; and d) finance, operate and manage BVSWMA. On February 9, 2010, the City of College Station, and on February 11, 2010, the City of Bryan, approved Articles of Incorporation for Brazos Valley Solid Waste Management Agency, Inc., the LCC formed under the aforementioned ILA. 62 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2009 City of College Station, Texas The following is a summary of information from the audited financial statements of BVSWMA as of September 30, 2009: 2009 2008 Assets: Current Assets 6,958,161$ 13,499,536$ Capital Assets (Net of $5,555,112 Accumulated Depreciation at 2009 and $4,664,182 at 2008)21,325,194 11,221,723 Deferred Landfill Permits (Net of $905,788 Accumulated Amortization at 2009 and $828,017 at 2008)2,993,669 2,803,321 31,277,024 27,524,580 Liabilities: Current Liabilities 1,807,297 628,228 Noncurrent Liabilities: Accrued Post Closure Maintenance Costs 4,366,110 3,903,979 Total Liabilities 6,173,407 4,532,207 Net Assets Invested In Capital Assets 21,325,194 11,221,723 Unrestricted 3,778,423 11,770,650 Total Net Assets 25,103,617$ 22,992,373$ Program Revenues 6,574,937$ 6,719,647$ Expenses 4,704,837 4,682,205 Transfers from the City of College Station - 2,874,789 1,870,100 4,912,231 General Revenues 241,144 784,126 Change in Net Assets 2,111,244$ 5,696,357$ A copy of BVSWMA's separate audited financial statements may be obtained from the City's Fiscal Services Department. D. Retirement Plan Plan Description The City provides pension benefits for all of its full-time employees through a nontraditional, joint contributory, hybrid defined benefit plan in the state-wide Texas Municipal Retirement System ("TMRS"), an agent multiple-employer public employee retirement system. The plan provisions that have been adopted by the City are within the options available in the governing state statutes of TMRS. TMRS issues a publicly available comprehensive annual financial report that includes financial statements and required supplementary information (RSI) for TMRS; the report also provides detailed explanations of the contributions, benefits and actuarial methods and assumptions used by the System. The report may be obtained by writing TMRS, Post Office Box 149153, 63 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2009 City of College Station, Texas Austin, Texas 78714-9153 or by calling 800-924-8677; in addition, the report is available on TMRS’ website at www.TMRS.com. The plan provisions are adopted by the governing body of the City, within the options available in the state statutes governing TMRS. Plan provisions for the City were as follows: Plan Year 2008 Plan Year 2009 Employee deposit rate 7.0% 7.0% Matching ratio (City to Employee) 2 to 1 2 to 1 Years required for vesting 5 5 Service retirement eligibility (expressed as age / years of service) 60/5, 0/20 60/5, 0/20 Updated Service Credit 100% Repeating, Transfers 100% Repeating, Transfers Annuity Increase (to retirees) 70% of CPI Repeating 70% of CPI Repeating Contributions Under the state law governing TMRS, the contribution rate for each city is determined annually by the actuary, using the Projected Unit Credit actuarial cost method. This rate consists of the normal cost contribution rate and the prior service cost contribution rate, which is calculated to be a level percent of payroll from year to year. The normal cost contribution rate finances the portion of an active member’s projected benefit allocated annually; the prior service contribution rate amortizes the unfunded (overfunded) actuarial liability (asset) over the applicable period for that City. Both the normal cost and the prior service contribution rates include recognition of the projected impact of annually repeated benefits, such as Updated Service Credits and Annuity Increases. The City contributed to the TMRS Plan at an actuarially determined rate. Both the employees and the City made contributions monthly. Since the City needs to know its contribution rate in advance for budgetary purposes, there is a one-year delay between the actuarial valuation that serves as the basis for the rate and the calendar year when the rate goes into effect. The annual pension cost and net pension obligation/(asset) are as follows: 1. Annual Required Contribution (ARC) $ 7,672,160 $ of ARC1 2. Interest on Net Pension Obligation 0 Interest2 * (7) 3. Adjustment to the ARC (0) (7) / amortization factor 4. Annual Pension Cost 7,672,160 (1) + (2) + (3) 5. Contributions Made ( 5,313,678) Actual Contributions 6. Increase (decrease) in net pension obligation 2,358,482 (4) + (5) 7. Net Pension Obligation/(Asset), beginning of year 0 $ 03 8. Net Pension Obligation/(Asset), end of year $ 2,358,482 (6) + (7) 1The fiscal year $ ARC is determined by the sum of the applicable $ ARC for each month. The $ ARC for each month is determined by multiplying the PY % ARC (Full Retirement Rate) by the applicable payroll for that month. 2Should be the interest rate used in determining the ARC for the period. This is 7% for the 2008 and 2009 ARC and 7/5% for the 2010 ARC. 3Beginning of Year Net Pension Obligation/(Asset) most likely will be $0 for the first year. Subsequent years should begin with the ending value of the prior year. The required contribution rates for fiscal year 2009 were determined as part of the December 31, 2006 and 2007 actuarial valuations. Additional information as of the latest actuarial valuation, December 31, 2008, also follows: 64 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2009 City of College Station, Texas 12/31/2006 12/31/2007 12/31/2008 Actuarial Cost Method:Unit Credit Projected Unit Credit Projected Unit Credit Amortization Method:Level Percent of Payroll Level Percent of Payroll Level Percent of Payroll Remaining Amortization Period:25 Years--Open Period 30 Years--Closed Period 29 Years--Closed Period Asset Valuation Method:Amortized Cost Amortized Cost Amortized Cost Investment Rate of Return:7.0%7.0%7.5% Projected Salary Increases:Varies by age and service Varies by age and service Varies by age and service Includes Inflation at:3.50%3.00%3.00% Cost-of-Living Adjustments:None 2.1%2.1% The funded status as of December 31, 2008, the most recent actuarial valuation date, is as follows: Actuarial Valuation Date Actuarial Value of Assets Actuarial Accrued Liability (AAL) Funded Ratio Unfunded AAL (UAAL) Covered Payroll UAAL as a Percentage of Covered Payroll (1) (2) (3) (4) (5) (6) (1) / (2) (2) – (1) 12/31/2008 $90,243,677 $138,576,504 65.1 % $48,332,827 $40,337,456 119.8% The schedule of funding progress, presented as Required Supplementary Information following the notes to the financial statements, presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability of benefits. Post Retirement/Employment Benefits In addition to providing pension benefits, the City provides postretirement medical, dental, vision, drug and life insurance benefits for retired employees. This other post employment benefit (OPEB) plan was established by City Resolution No. 9-13-90-5.10, which was passed and approved by the City Council on September 13, 1990. The City Manager has the authority to amend the plan, and did so on September 30, 2009. Employees who retire while working for the City and their dependents are eligible to remain on the City’s health and dental plan as long as the employee makes monthly premium payments. On September 30, 2009, the monthly retiree premium payment became the actual non-blended retiree rate, effective as of January 1, 2010 for new retirees and effective January 1, 2011 for existing retirees. The change in the monthly premium eliminates the OPEB liability for postretirement medical, dental, vision and drug insurance benefits. The City also offers its retirees a $10,000 fully insured life insurance benefit until the retiree reaches age 65. No spouse coverage is offered. During the fiscal year ended September 30, 2009, the City paid $842 in premiums for this insurance policy for its eligible retirees. An OPEB liability does exist for this benefit, but it is considered immaterial. 65 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2009 City of College Station, Texas The City determines the employer and participant contribution rates annually based on recommendations of the staff and consulting actuary. During the fiscal year ended September 30, 2009, the City subsidized the retiree medical, dental, vision and drug premium so that the retiree premium is less than the full amount of premium for a full time employee. During fiscal year 2009, twenty-nine former employees were covered under this arrangement, with claims totaling $172,020. Prior to the passage of this resolution, employees who reached retirement while working for the City were eligible to remain on the City’s self-insured health plan and have their monthly premiums paid for by the City. During fiscal year 2009, one retiree was covered under this plan; however, claims filed by this retiree were not material. The City also provides health benefits as required by the Federal Government under the Consolidated Omnibus Budget Reconciliation Act of 1985 ("COBRA"). COBRA requires employers that sponsor group health plans to provide continuation of group coverage to employees and their dependents under certain circumstances where coverage would otherwise end. Eligible participants who qualify under COBRA pay premium costs for themselves and dependents. COBRA participants are on the same health plan and are reimbursed at the same levels as active employees. The amount of expenditures related to COBRA claims for the year ended September 30, 2009 was $162,118. For the fiscal year ended September 30, 2009, the City had forty-six COBRA participants. E. Deferred Compensation Plan The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code ("IRC") 457. The plan, as amended, is available to all employees and permits them to defer a portion of their salary until future years. The plan funds are not available to employees until termination, retirement, death, or emergency. All amounts of compensation deferred under the plan (until paid or made available to the employee or other beneficiary) were placed in trust for the exclusive benefit of the participants and the beneficiaries. This action is in accordance with changes made to IRC Section 457. Since the City is no longer the Plan Administrator or the trustee, the assets of the plan are no longer a reportable fund in the City's basic financial statements. F. Commitments and Contingencies Construction Commitments The City has contractual commitments of $2,080,797 in the Capital Projects Funds, $3,266,454 in the Water Fund, $1,336,197 in the Wastewater Fund and $519,668 in the Electric Fund. These commitments are for construction of various projects and will be funded primarily from long term debt. Contingencies The City participates in a number of federal and state assisted grant programs. These programs are subject to program compliance audits by the grantors or their representatives. Any liability for reimbursement which may arise as the result of these audits is not believed to be material. Litigation The City is a party to legal proceedings, many of which occur in the normal course of operations. It is not possible at the present time to estimate the ultimate outcome or liability, if 66 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2009 City of College Station, Texas any, of the city with respect to the various proceedings. The City’s management believes that the ultimate outcome of the various lawsuits will not have a material adverse effect on the City’s financial position. G. Bonds Available for Sale Authorized general obligation bonds available for future issue are as follows: Year Unissued Authorized Amount Public Buildings 1984 700,000$ Street Improvements 1984 500,000 Street Improvements 2003 1,520,000 Municipal Complex Improvements 2003 3,655,000 Library Expansion 2008 8,385,000 Fire Station #6 2008 6,240,000 Parks and Recreation 2008 11,255,000 Street Improvements 2008 45,390,000 Traffic Signals 2008 3,000,000 Total 80,645,000$ H. Revenue Bond Coverage All the net revenues of the Electric, Water, and Wastewater Funds are pledged for the payment of debt service of the revenue bonds and other indebtedness payable from those revenues. Net revenues, as defined by the revenue bond resolutions, include substantially all of the revenues and expenses of the above named funds other than certain interest income and expense, and depreciation and amortization. These bond resolutions further require that the net revenues, as defined, equal at least 1.40 times the average annual debt service on all revenue bonds and other indebtedness payable from those revenues and 1.25 times the maximum annual debt service on all revenue bonds and other indebtedness payable from those revenues. The maximum annual debt service is defined as the maximum principal and interest payments to be paid in any one year remaining in the life of the bonds, and the average annual debt service is defined as the sum of all principal and interest payments due over the remaining life of the bonds divided by the remaining life of the bonds. The City is in compliance with these requirements. I. Subsequent Events On September 30, 2009, the City of College Station authorized a change in its retiree health insurance coverage. The change is phased in over the next year and a half. Effective January 1, 2010, new retirees choosing to stay on the City’s health plan may do so by paying the non- blended retiree-rate for health benefits. The existing retirees on the City’s health plan will be able to stay on the health plan and pay the subsidized employee group rate through December 31, 2010. This change eliminates the City’s Other Post Employment Benefit Cost for Health and Dental Benefits. On November 15, 2009, the City issued $8.095 million General Obligation Refunding Bonds, Series 2009. The advanced refunding of General Obligation Improvement Bonds, Series 1998, 1999, 2000 and Certificates of Obligation 2000A was undertaken to reduce total general obligation debt service payments over the next 10 years by $795,539 resulting in an economic gain of $655,532. 67 68 CITY OF COLLEGE STATION, TEXAS Schedule of Funding Progress Texas Municipal Retirement System Last Ten Fiscal Years (unaudited) UAAL as a Actuarial Actuarial Percentage Actuarial Value of Accrued Unfunded Funded Covered of Covered Valuation Assets Liability (AAL) AAL (UAAL) Ratio Payroll Payroll Date* (a)(b)(b-a) (a/b) (c) [(b-a)/c] 12/31/1999 43,010,803 49,987,308 6,976,505 86.0% 20,803,862 33.5% 12/31/2000 47,880,750 55,811,761 7,931,011 85.8% 23,651,256 33.5% 12/31/2001 52,927,528 61,856,550 8,929,022 85.6% 25,422,558 35.1% 12/31/2002 57,742,291 68,424,249 10,681,958 84.4% 27,784,120 38.4% 12/31/2003 63,223,606 80,476,343 17,252,737 78.6% 28,537,016 60.5% 12/31/2004 70,336,601 87,906,815 17,570,214 80.0% 30,978,906 56.7% 12/31/2005 75,655,678 94,605,300 18,949,622 80.0% 31,987,028 59.2% 12/31/2006 80,758,249 102,166,047 21,407,798 79.0% 34,143,239 62.7% 12/31/2007 87,193,697 130,310,054 43,116,357 66.9% 36,703,161 117.5% 12/31/2008 90,243,677 138,576,504 48,332,827 65.1% 40,337,456 119.8% *Assets are stated at cost as of December 31 of the preceding year. 69 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Taxes Ad valorem 9,625,926$ 9,625,926$ 9,527,767$ -$ 9,527,767$ (98,159)$ Penalty and interest 42,450 42,450 43,843 - 43,843 1,393 Sales 20,558,859 20,558,859 19,438,179 - 19,438,179 (1,120,680) Franchise 2,201,400 2,201,400 2,217,618 - 2,217,618 16,218 Mixed Drink 428,400 428,400 435,034 - 435,034 6,634 Licenses and Permits 1,113,500 1,113,500 1,007,151 - 1,007,151 (106,349) Intergovernmental 266,039 458,851 829,506 - 829,506 370,655 Charges for Services 3,205,749 3,205,749 2,922,495 - 2,922,495 (283,254) Fines, Forfeits, and Penalties 3,544,000 3,544,000 3,589,478 - 3,589,478 45,478 Investment Income 472,095 472,095 235,181 - 235,181 (236,914) Rents and Royalties 301,000 301,000 292,660 - 292,660 (8,340) Contributions 25,500 25,500 22,725 - 22,725 (2,775) Reimbursed Expenditures - - 358,756 358,756 - - Other 164,500 164,500 153,859 - 153,859 (10,641) Total Revenues 41,949,418 42,142,230 41,074,252 358,756 40,715,496 (1,426,734) Expenditures Current General Government 5,189,818 5,283,219 4,763,622 (33,784) 4,797,406 (485,813) Fiscal Services 3,375,611 3,230,865 3,161,357 (2,755) 3,164,112 (66,753) Police 14,306,878 14,286,474 14,083,071 (18,282) 14,101,353 (185,121) Fire 11,606,479 11,734,266 11,754,088 - 11,754,088 19,822 Planning and Development Services 2,938,471 3,002,644 2,803,512 (67,829) 2,871,341 (131,303) Public Works 7,998,597 7,990,321 6,495,104 (1,579,609) 8,074,713 84,392 Capital Improvement Projects 883,807 876,438 476,462 (385,099) 861,561 (14,877) Parks and Recreation 9,284,098 9,293,827 8,785,858 (504,152) 9,290,010 (3,817) Information Services 3,402,779 3,357,208 3,298,479 (626) 3,299,105 (58,103) Library 1,130,871 1,150,599 1,119,771 - 1,119,771 (30,828) Reimbursed Administration (6,758,926) (6,758,926) - 6,408,148 (6,408,148) 350,778 Contributions 778,938 778,938 790,262 - 790,262 11,324 Other 161,000 265,498 385,178 - 385,178 119,680 Total Expenditures 54,298,421 54,491,371 57,916,764 3,816,012 54,100,752 (390,619) Deficiency of Revenues Under Expenditures (12,349,003) (12,349,141) (16,842,512) (3,457,256) (13,385,256) (1,036,115) Other Financing Sources (Uses) Sales of Capital Assets 12,000 12,000 5,606 - 5,606 (6,394) Transfers In 11,632,801 11,632,801 15,047,102 3,457,256 11,589,846 (42,955) Transfer Out (685,000) (609,265) (9,700) - (9,700) 599,565 Total Other Financing Sources 10,959,801 11,035,536 15,043,008 3,457,256 11,585,752 550,216 Net Change in Fund Balances (1,389,202) (1,313,605) (1,799,504)-$ (1,799,504) (485,899)$ Fund Balances, October 1 11,177,933 11,177,933 11,177,933 11,177,933 Fund Balances, September 30 9,788,731$ 9,864,328$ 9,378,429$ 9,378,429$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balances General Fund For the Fiscal Year Ended September 30, 2009 Budget and Actual 70 Note a. CITY OF COLLEGE STATION, TEXAS Required Supplementary Information Budgetary Comparison Schedule Notes to Required Supplementary Information September 30, 2009 The City prepares its annual budget on a basis (budget basis) which differs from a GAAP basis. The budget and all transactions are presented in accordance with the City’s method (budget basis) in the Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual - General Fund to provide a meaningful comparison of actual results with the budget. The differences between budget and GAAP basis in the General Fund are that reimbursements and transfers of indirect costs are shown as Reimbursed Administration. 71 72 COMBINING FINANCIAL STATEMENTS General Fund(s) The General Fund is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. All general tax revenues and other receipts that are not restricted by law or contractual agreement to some other fund are accounted for in this fund. General operating expenditures, fixed charges and capital improvement costs that are not paid through other funds are paid from the General Fund. The General Fund Type has historically incorporated several funds, which have been reported collectively as the General Fund in the City’s Comprehensive Annual Financial Report. During the fiscal year, the City re-organized its fund structure to classify certain funds previously classified as General Fund as Special Revenue Funds. These funds (and their restricting legislation) include the Court Technology Fee Fund (Texas Code of Criminal Procedure, Article 102.0172), the Court Security Fee Fund (Texas Code of Criminal Procedure, Article 102.017), the Juvenile Case Manager Fee Fund (Texas Code of Criminal Procedure, Article 102.0174), and the Police Seizure Fund (federal law and Public Health Laws, Title 71, Article 4476-15, Section 503). For the fiscal year ending September 30, 2009, the General Fund includes: General Fund Economic Development Fund – accounts for funds used for business attraction and retention. Monies for this purpose are transferred to the Economic Development Fund from the General Fund, the Business Park Fund, and the Electric, Water, Wastewater and Sanitation Funds. Parks Xtra Education Fund – accounts for funds used for community-based education programs jointly offered by the City of College Station and the College Station Independent School District. Registration fees primarily fund this fund. Unclaimed Property Fund – accounts for checks issued but not cashed. After the abandonment period of 1 year for payroll checks over $100 and 3 years for accounts payable checks over $100, these funds are sent to the State Comptroller. Efficiency Time Payment Fee Fund – accounts for unrestricted revenue collected by the Municipal Court pursuant to Texas Local Government Code, Section 133.103. Funds previously reported as General Fund type include: Court Technology Fee – to account for funds collected by municipal court to be used to finance the purchase of or to maintain technological enhancements for a municipal court. Court Security Fee - to account for funds collected by municipal court to be used to finance security personnel for a municipal court or to finance items when used for the purpose of providing security services. Juvenile Case Manager – to account for funds collected by municipal court to be used to finance the salary and benefits of a juvenile case manager. Police Seizure – to account for funds obtained through forfeiture provisions under federal laws; seized money from delivery of controlled substance in accordance with Public Health Laws. These monies are to be used for training and other law enforcement activities. 73 General Economic Development Parks Xtra Education Unclaimed Property Effeciency Time Payment Total General Fund Assets Equity in Cash and Cash Equivalents 7,155,891$ 1,437,179$ 15,535$ 73,210$ 27,652$ 8,709,467$ Equity in Investments 1,804,993 352,806 3,814 17,972 6,788 2,186,373 Receivables Accrued Interest 19,871 4,099 44 -79 24,093 Grants 29,791 ----29,791 Letter of Credit 25,000 ----25,000 Accounts 2,649,784 69,964 - - - 2,719,748 Taxes 1,930,778 - - - - 1,930,778 Other 3,229 - - - - 3,229 Less Allowance for Uncollectible Accounts (17,416) - - - - (17,416) Inventories 49,359 - - - - 49,359 Prepaid Costs 13,031 - - - - 13,031 Restricted Assets Equity in Cash and Cash Equivalents 196,868 - - - - 196,868 Total Assets 13,861,179$ 1,864,048$ 19,393$ 91,182$ 34,519$ 15,870,321$ Liabilities and Fund Balances Accounts Payable 570,295$ 250,225$ 1,774$ -$ -$ 822,294$ Retainage Payable 7,400 ----7,400 Interfund Payables - 480,000 ---480,000 Refundable Deposits 48,213 ----48,213 Accrued Liabilities 2,083,260 -356 91,182 - 2,174,798 Customer Construction Advances 58,566 ----58,566 Other Deferred Revenues 2,900,621 ---- 2,900,621 Total Liabilities 5,668,355 730,225 2,130 91,182 - 6,491,892 Fund Balances Nonspendable 62,390 ----62,390 Restricted 95,220 ----95,220 Assigned 477,795 1,133,823 17,263 -34,519 1,663,400 Unassigned 7,557,419 ---- 7,557,419 Total Fund Balances 8,192,824 1,133,823 17,263 -34,519 9,378,429 Total Liabilities and Fund Balances 13,861,179$ 1,864,048$ 19,393$ 91,182$ 34,519$ 15,870,321$ CITY OF COLLEGE STATION, TEXAS Combining Balance Sheet General Fund(s) September 30, 2009 74 Court Technology Court Security Juvenile Case Manager Police Seizure Special Revenue Funds Previously Reported as General Funds General Fund as Previously Reported 258,635$ 172,064$ 194,890$ 42,235$ 667,824$ 9,377,291$ 63,491 42,239 47,843 10,368 163,941 2,350,314 738 491 556 120 1,905 25,998 -----29,791 -----25,000 ----- 2,719,748 ----- 1,930,778 -----3,229 -----(17,416) -----49,359 -----13,031 -----196,868 322,864$ 214,794$ 243,289$ 52,723$ 833,670$ 16,703,991$ 2,559$ 4,905$ 2,958$ -$ 10,422$ 832,716$ -----7,400 -----480,000 -----48,213 ----- 2,174,798 -----58,566 ----- 2,900,621 2,559 4,905 2,958 -10,422 6,502,314 -----62,390 320,305 209,889 240,331 52,723 823,248 918,468 ----- 1,663,400 ----- 7,557,419 320,305 209,889 240,331 52,723 823,248 10,201,677 322,864$ 214,794$ 243,289$ 52,723$ 833,670$ 16,703,991$ 75 General Economic Development Parks Xtra Education Unclaimed Property Efficiency Time Payment Adjust intra- General Fund transfers Total General Fund Revenues Taxes 31,662,441$ -$ -$ -$ -$ 31,662,441$ Licenses and Permits 1,007,151 ----1,007,151 Intergovernmental 829,506 ----829,506 Charges for Services 2,823,479 -99,016 --2,922,495 Fines, Forfeits, and Penalties 3,582,109 ---7,369 3,589,478 Investment Income 202,446 31,818 232 -685 235,181 Rents and Royalties 292,660 ----292,660 Contributions 22,725 ----22,725 Reimbursed Expenditures 358,756 ----358,756 Other 83,895 69,964 ---153,859 Total Revenues 40,865,168 101,782 99,248 -8,054 41,074,252 Expenditures Current General Government 4,374,889 388,733 ---4,763,622 Fiscal Services 3,161,357 ----3,161,357 Police 14,083,071 ----14,083,071 Fire 11,754,088 ----11,754,088 Planning and Development Services 2,803,512 ----2,803,512 Public Works 6,495,104 ----6,495,104 Capital Improvement Projects 476,462 ----476,462 Parks and Recreation 8,697,826 -88,032 --8,785,858 Information Services 3,298,479 ----3,298,479 Library 1,119,771 ----1,119,771 Contributions 790,262 ----790,262 Other 179,078 206,100 ---385,178 Total Expenditures 57,233,899 594,833 88,032 --57,916,764 Excess (Deficiency) of Revenues Over (Under) Expenditures (16,368,731) (493,051) 11,216 -8,054 (16,842,512) Other Financing Sources (Uses) Sales of Capital Assets 5,606 ----5,606 Transfers In 14,762,383 610,000 --- (325,281) 15,047,102 Transfer Out (435,000) 120,000 (10,281)-(9,700) 325,281 (9,700) Total Other Financing Sources (Uses)14,332,989 730,000 (10,281)-(9,700)- 15,043,008 Net Change in Fund Balances (2,035,742) 236,949 935 -(1,646)(1,799,504) Fund Balances, October 1 10,228,566 896,874 16,328 -36,165 11,177,933 Fund Balances, September 30 8,192,824$ 1,133,823$ 17,263$ -$ 34,519$ 9,378,429$ CITY OF COLLEGE STATION, TEXAS Combining Statement of Revenues, Expenditures, and Changes in Fund Balances General Fund(s) For the Fiscal Year Ended September 30, 2009 76 Court Technology Court Security Juvenile Case Manager Police Seizure Special Revenue Funds Previously Reported as General Funds General Fund as Previously Reported -$ -$ -$ -$ -$ 31,662,441$ -----1,007,151 -----829,506 -----2,922,495 71,375 53,532 106,551 16,692 248,150 3,837,628 5,755 4,706 4,467 889 15,817 250,998 -----292,660 -----22,725 -----358,756 -----153,859 77,130 58,238 111,018 17,581 263,967 41,338,219 -----4,763,622 20,820 139,977 80,630 -241,427 3,402,784 ---2,500 2,500 14,085,571 -----11,754,088 -----2,803,512 -----6,495,104 -----476,462 -----8,785,858 -----3,298,479 -----1,119,771 -----790,262 -----385,178 20,820 139,977 80,630 2,500 243,927 58,160,691 56,310 (81,739)30,388 15,081 20,040 (16,822,472) -----5,606 -----15,047,102 (3,747)--(501)(4,248)(13,948) (3,747)--(501)(4,248) 15,038,760 52,563 (81,739)30,388 14,580 15,792 (1,783,712) 267,742 291,628 209,943 38,143 807,456 11,985,389 320,305$ 209,889$ 240,331$ 52,723$ 823,248$ 10,201,677$ 77 COMBINING FINANCIAL STATEMENTS NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS Special revenue funds are used to account for specific revenues that are legally restricted or committed to expenditures for particular purposes other than debt service or capital projects. Court Technology Fee – to account for funds collected by municipal court to be used to finance the purchase of or to maintain technological enhancements for a municipal court. Court Security Fee - to account for funds collected by municipal court to be used to finance security personnel for a municipal court or to finance items when used for the purpose of providing security services. Juvenile Case Manager – to account for funds collected by municipal court to be used to finance the salary and benefits of a juvenile case manager. Police Seizure – to account for funds obtained through forfeiture provisions under federal laws; seized money from delivery of controlled substance in accordance with Public Health Laws. These monies are to be used for training and other law enforcement activities. American Recovery and Reinvestment Act (ARRA) – to account for funds granted to the City under the ARRA. Red Light Camera – to account for the receipt and expenditure of funds from the operation of red light cameras. Northgate Tax Increment Financing District - to account for the receipt and expenditure of funds received by the City from the creation of a tax increment financing district for the Northgate area. Memorial Cemetery – to account for sales of plots (and options of plots) in the planned Aggie Field of Honor & Municipal Cemetery. Cemetery Perpetual Care - to account for principal trust amounts received and related interest income for the College Station Cemetery. Memorial Cemetery Perpetual Care - to account for principal trust amounts received and related interest income for the College Station Memorial Cemetery Hotel Occupancy Tax - to account for the receipt and expenditure of funds received by the City from the assessment of hotel and motel occupancy tax. Usage of funds is restricted to the construction and maintenance of convention and civic facilities and to the promotion of tourism and arts within the City. Community Development - to account for funds granted to the City by the Federal Department of Housing and Urban Development for use on various community improvement projects. Wolf Pen Creek Tax Increment Financing District - to account for the receipt and expenditure of funds received by the City from the creation of a tax increment financing district for the Wolf Pen Creek area. Convention Center - to account for the receipt and expenditure of funds received by the City in the operation and maintenance of a convention center. Revenues associated with this fund are derived from the hotel and motel occupancy tax and convention center rentals. Parks Escrow - to account for the receipt and expenditure of funds received by the City from residential land developers, who dedicate land, or money in lieu of land, for use in the development of neighborhood parks in residential areas. Business Park - to account for the cost of street, water, and sewer improvements at the College Station Business Park. Drainage Projects - to account for the cost of drainage maintenance and drainage improvements made with funds provided by a drainage utility fee and proceeds from the sale of general obligation bonds. 78 CAPITAL PROJECTS FUNDS Capital Projects Funds are used to account for the acquisition and construction of major capital improvements other than those financed by proprietary funds and trust funds. General Government Projects - to account for the cost of new building construction and building improvements made with funds provided by proceeds from the sale of general obligation bonds, certificates of obligation and by investing those proceeds. Parks & Recreation Projects - to account for the costs of new parks and improvements to existing parks made with funds provided from the sale of general obligation bonds, certificates of obligation and by investing those proceeds. Streets Projects – to account for the costs of new street construction, street improvements, and traffic signalization made with funds provided by proceeds from the sale of general obligation bonds, certificates of obligation and by investing those proceeds. . 79 Court Technology Fee Court Security Fee Juvenile Case Manager Police Seizure American Recovery and Reinvestment Act (ARRA) Red Light Camera Northgate Tax Increment Financing District Memorial Cemetery Cemetery Perpetual Care Assets Equity in Cash and Cash Equivalents 258,635$ 172,064$ 194,890$ 42,235$ 74,006$ 674,577$ -$ 475,023$ 1,321,732$ Equity in Investments 63,491 42,239 47,843 10,368 18,167 165,599 - 116,611 324,466 Receivables Accrued Interest 738 491 556 120 211 1,347 - 1,355 3,769 Grants --------- Accounts -----500-27,052 9,842 Loans --------- Less Allowance for Uncollectible Accounts --------(5,831) Inventories -------353 Prepaid Costs --------- Restricted Assets Equity in Cash and Cash Equivalents --------- Equity in investments --------- Total Assets 322,864$ 214,794$ 243,289$ 52,723$ 92,384$ 842,023$ -$ 620,041$ 1,654,331$ Liabilities and Fund Balances Accounts Payable 2,559$ 4,905$ 2,958$ -$ -$ 47,856$ -$ 3,042$ (239)$ Retainage Payable --------- Refundable Deposits --------- Accrued Liabilities -----623,697 - - - Customer Construction Advances --------- Other Deferred Revenues ----92,235 - - 30,652 - Total Liabilities 2,559 4,905 2,958 - 92,235 671,553 - 33,694 (239) Fund Balances Nonspendable - ----- - Restricted 320,305 209,889 240,331 52,723 149 170,470 - - - Committed - -----586,347 1,654,570 Assigned --------- Unassigned - ------- Total Fund Balances 320,305 209,889 240,331 52,723 149 170,470 - 586,347 1,654,570 Total Liabilities and Fund Balances 322,864$ 214,794$ 243,289$ 52,723$ 92,384$ 842,023$ -$ 620,041$ 1,654,331$ Special Revenue CITY OF COLLEGE STATION, TEXAS Combining Balance Sheet Non-Major Governmental Funds September 30, 2009 80 Memorial Cemetery Perpetual Care Hotel Occupancy Tax Community Development Wolf Pen Creek Tax Increment Financing District Convention Center Parks Escrow Business Park Drainage General Government Projects Parks and Recreation Projects Street Projects 196,934$ 1,554,606$ 559,790$ 2,072,639$ 449,198$ 1,287,999$ 487,939$ 2,211,914$ 7,615,894$ 1,134,785$ 11,907,507$ 32,692,367$ 48,344 381,633 137,420 508,802 110,272 316,185 119,782 542,992 1,869,589 278,573 2,923,116 8,025,492 562 4,509 -5,926 3,280 3,771 1,392 6,579 21,929 3,246 34,387 94,168 --185,719 --------185,719 23,781 299,199 --43,856 --236,789 --373,512 1,014,531 --539,174 --------539,174 -(57,293)--(6,290)--(30,483)--- (99,897) -320,480 --------320,833 ----------315,733 315,733 ----595,464 ------595,464 ----146,177 ------146,177 269,621$ 2,182,654$ 1,742,583$ 2,587,367$ 1,341,957$ 1,607,955$ 609,113$ 2,967,791$ 9,507,412$ 1,416,604$ 15,554,255$ 43,829,761$ 995$ 1,482$ 138,558$ -$ 2,470$ 110,099$ -$ 25,665$ 174,500$ 18,577$ 543,100$ 1,076,527$ --5,865 --8,597 -10,000 214,190 62,080 437,144 737,876 ----33,365 ------33,365 --8,861 --------632,558 ----------452,540 452,540 23,781 241,906 --19,457 -----373,512 781,543 24,776 243,388 153,284 -55,292 118,696 -35,665 388,690 80,657 1,806,296 3,714,409 --859,654 --------859,654 - 1,939,266 729,645 2,587,367 600,000 1,489,259 - 2,932,126 9,118,722 1,335,947 13,747,959 35,474,158 244,845 ---141,641 ------2,627,403 ------609,113 ----609,113 ----545,024 ------545,024 244,845 1,939,266 1,589,299 2,587,367 1,286,665 1,489,259 609,113 2,932,126 9,118,722 1,335,947 13,747,959 40,115,352 269,621$ 2,182,654$ 1,742,583$ 2,587,367$ 1,341,957$ 1,607,955$ 609,113$ 2,967,791$ 9,507,412$ 1,416,604$ 15,554,255$ 43,829,761$ Capital Projects Total Other Governmental Funds 81 Court Technology Court Security Juvenile Case Manager Police Seizure American Recovery and Reinvestment Act (ARRA) Red Light Camera Northgate Tax Increment Financing District Memorial Cemetery Cemetery Perpetual Care Memorial Cemetery Perpetual Care Revenues Taxes -$ -$ -$ -$ -$ -$ 86,340$ -$ -$ -$ Intergovernmental ---------- Charges for Services -------351,474 68,141 111,398 Fines, Forfeits, and Penalties 71,375 53,532 106,551 16,692 -654,332 ---- Special Assessment ---------- Investment Income 5,755 4,706 4,467 889 149 10,294 785 8,787 31,306 4,001 Rents and Royalties ---------- Contributions --------4,272 - Reimbursed Expenditures ---------- Other --------(925) - Total Revenues 77,130 58,238 111,018 17,581 149 664,626 87,125 360,261 102,794 115,399 Expenditures Current General Government ---------- Fiscal Services 20,820 139,977 80,630 --342,715 ---- Police ---2,500 -18,282 ---- Planning and Development Services ---------- Public Works -----317,000 ---- Parks and Recreation -------42,496 3,141 - Information Services -----626---- Contributions ---------- Other --------28271,522 Capital Outlay ---------- Debt Service Fiscal Charges ---------- Intergovernmental ---------- Total Expenditures 20,820 139,977 80,630 2,500 -678,623 -42,496 3,423 71,522 Excess (Deficiency) of Revenues Over (Under) Expenditures 56,310 (81,739)30,388 15,081 149 (13,997)87,125 317,765 99,371 43,877 Other Financing Sources (Uses) Issuance of Debt ---------- Sales of Capital Assets ---------- Transfers In ---------- Transfer Out (3,747)--(501)-- (141,641)--- Total Other Financing Sources (Uses)(3,747)--(501)-- (141,641)--- Net Change in Fund Balances 52,563 (81,739)30,388 14,580 149 (13,997)(54,516) 317,765 99,371 43,877 Fund Balances, October 1 267,742 291,628 209,943 38,143 -184,467 54,516 268,582 1,555,199 200,968 Prior Period Adjustment Fund Balances, September 30 320,305$ 209,889$ 240,331$ 52,723$ 149$ 170,470$ -$ 586,347$ 1,654,570$ 244,845$ Special Revenue CITY OF COLLEGE STATION, TEXAS Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Non-Major Governmental Funds For the Fiscal Year Ended September 30, 2009 82 Hotel Occupancy Tax Community Development Wolf Pen Creek Incremental Financing District Convention Center Parks Escrow Business Park Drainage General Government Projects Parks and Recreation Projects Streets Projects 3,574,649$ -$ 973,012$ -$ -$ -$ -$ -$ -$ -$ 4,634,001$ - 1,067,117 --------1,067,117 --------89,556 -620,569 ----------902,482 ------1,793,174 ---1,793,174 11,404 -35,379 (36,127)32,650 13,539 56,829 187,969 23,920 382,129 778,831 ---476,490 ------476,490 ----------4,272 -----20,000 -9,350 -24,543 53,893 -13,276 --237,094 ---244 -249,689 3,586,053 1,080,393 1,008,391 440,363 269,744 33,539 1,850,003 197,319 113,720 406,672 10,580,518 -622,724 -49,009 ------671,733 20,665 -----70,622 ---675,429 -------3,887 --24,669 -67,829 --------67,829 ------1,107,899 ---1,424,899 506,468 16,624 714 -------569,443 ----------626 1,699,300 ---------1,699,300 ---17,190 --12,991 ---101,985 --15,263 9,639,985 381,918 20,066 360,995 7,968,174 2,145,430 11,399,570 31,931,401 ---19,735 ---11,076 1,534 1,067 33,412 ---------745,908 745,908 2,226,433 707,177 15,977 9,725,919 381,918 20,066 1,552,507 7,983,137 2,146,964 12,146,545 37,946,634 1,359,620 373,216 992,414 (9,285,556) (112,174)13,473 297,496 (7,785,818) (2,033,244) (11,739,873) (27,366,116) --- 3,220,000 --- 4,010,000 1,535,000 1,050,000 9,815,000 -------500,000 --500,000 --8,515 7,141,641 ---85,682 86,961 130,671 7,453,470 (7,000,000)(94,403)- (130,671)(9,101) (250,000) (419,567)-(68,026)(81,234) (8,198,891) (7,000,000)(94,403)8,515 10,230,970 (9,101) (250,000) (419,567) 4,595,682 1,553,935 1,099,437 9,569,579 (5,640,380) 278,813 1,000,929 945,414 (121,275) (236,527) (122,071) (3,190,136) (479,309) (10,640,436) (17,796,537) 7,579,646 733,906 1,586,438 341,251 1,610,534 845,640 3,054,197 12,308,858 1,815,256 24,388,395 57,335,309 576,580 576,580 1,939,266$ 1,589,299$ 2,587,367$ 1,286,665$ 1,489,259$ 609,113$ 2,932,126$ 9,118,722$ 1,335,947$ 13,747,959$ 40,115,352$ Capital Projects Total Other Governmental Funds 83 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Fines, Forfeits, and Penalties 89,000$ 89,000$ 71,375$ -$ 71,375$ (17,625)$ Investment Income 9,000 9,000 5,755 -5,755 (3,245) Total Revenues 98,000 98,000 77,130 -77,130 (20,870) Expenditures Current Fiscal Services 40,000 40,000 20,820 -20,820 (19,180) Reimbursed Administration 3,747 3,747 -(3,747)3,747 - Total Expenditures 43,747 43,747 20,820 (3,747)24,567 (19,180) Excess (Deficiency) of Revenues Over (Under) Expenditures 54,253 54,253 56,310 3,747 52,563 (1,690) Other Financing Sources (Uses) Transfer Out --(3,747)(3,747)-- Total Other Financing Uses --(3,747)(3,747)-- Net Change in Fund Balances 54,253 54,253 52,563 -$ 52,563 52,563 Fund Balances, October 1 267,742 267,742 267,742 267,742 267,742 Fund Balances, September 30 321,995$ 321,995$ 320,305$ 320,305$ 320,305$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balances Court Technology Fee Fund For the Fiscal Year Ended September 30, 2009 Budget and Actual 84 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Fines, Forfeits, and Penalties 67,000$ 67,000$ 53,532$ -$ 53,532$ (13,468)$ Investment Income 13,000 13,000 4,706 -4,706 (8,294) Total Revenues 80,000 80,000 58,238 -58,238 (21,762) Expenditures Fiscal Services 154,848 154,848 139,977 -139,977 (14,871) Total Expenditures 154,848 154,848 139,977 -139,977 (14,871) Deficiency of Revenues Under Expenditures (74,848)(74,848)(81,739)-(81,739)(6,891) Net Change in Fund Balances (74,848)(74,848)(81,739)-$ (81,739)(6,891) Fund Balances, October 1 291,628 291,628 291,628 291,628 291,628 Fund Balances, September 30 216,780$ 216,780$ 209,889$ 209,889$ 284,737$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balances Court Security Fee Fund For the Fiscal Year Ended September 30, 2009 Budget and Actual 85 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Taxes Fines, Forfeits, and Penalties 115,000$ 115,000$ 106,551$ -$ 106,551$ (8,449)$ Investment Income 8,200 8,200 4,467 -4,467 (3,733) Total Revenues 123,200 123,200 111,018 -111,018 (12,182) Expenditures Fiscal Services 84,346 84,346 80,630 (392)81,022 (3,324) Reimbursed Administration ---392 (392)(392) Total Expenditures 84,346 84,346 80,630 -80,630 (3,716) Excess (Deficiency) of Revenues Over (Under) Expenditures 38,854 38,854 30,388 -30,388 (8,466) Net Change in Fund Balances 38,854 38,854 30,388 -$ 30,388 (8,466) Fund Balances, October 1 209,943 209,943 209,943 209,943 209,943 Fund Balances, September 30 248,797$ 248,797$ 240,331$ 240,331$ 201,477$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balances Juvenile Case Manager Fund For the Fiscal Year Ended September 30, 2009 Budget and Actual 86 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Fines, Forfeits, and Penalties 15,000$ 15,000$ 16,692$ -$ 16,692$ 1,692$ Investment Income 1,000 1,000 889 -889 (111) Total Revenues 16,000 16,000 17,581 -17,581 1,581 Expenditures Police 20,000 20,000 2,500 -2,500 (17,500) Reimbursed Administration 501 501 -(501)501 - Total Expenditures 20,501 20,501 2,500 (501)3,001 (17,500) Excess (Deficiency) of Revenues Over (Under) Expenditures (4,501)(4,501)15,081 501 14,580 19,081 Other Financing Uses Transfer Out --(501)(501)-(501) Total Other Financing Uses --(501)(501)-(501) Net Change in Fund Balances (4,501)(4,501)14,580 -$ 14,580 18,580 Fund Balances, October 1 38,143 38,143 38,143 38,143 38,143 Fund Balances, September 30 33,642$ 33,642$ 52,723$ 52,723$ 56,723$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balances Police Seizure Fund For the Fiscal Year Ended September 30, 2009 Budget and Actual 87 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Investment Income -$ -$ 149$ -$ 149$ 149$ Total Revenues --149 -149 149 Expenditures General Government -299,821 --- (299,821) Police -92,235 ---(92,235) Total Expenditures -392,056 --- (392,056) Excess (Deficiency) of Revenues Over (Under) Expenditures - (392,056)149 -149 392,205 Net Change in Fund Balances - (392,056)149 -$ 149 392,205 Fund Balances, September 30 -$ (392,056)$ 149$ 149$ 392,205$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balances American Recovery and Reinvestment Act (ARRA) Fund For the Fiscal Year Ended September 30, 2009 Budget and Actual 88 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Fines, Forfeits, and Penalties 1,075,000$ 1,075,000$ 654,332$ -$ 654,332$ (420,668)$ Investment Income --10,294 -10,294 10,294 Total Revenues 1,075,000 1,075,000 664,626 -664,626 (410,374) Expenditures Fiscal Services 612,000 707,000 342,715 2,755 339,960 (367,040) Police --18,282 18,282 -- Public Works 410,090 418,401 317,000 33,761 283,239 (135,162) Information Services --626 626 -- Total Expenditures 1,022,090 1,125,401 678,623 55,424 623,199 (502,202) Excess (Deficiency) of Revenues Over (Under) Expenditures 52,910 (50,401)(13,997)(55,424)41,427 91,828 Other Financing Uses Transfer Out (45,000)(45,000)---45,000 Total Other Financing Uses (45,000)(45,000)---45,000 Net Change in Fund Balances 7,910 (95,401)(13,997)(55,424)$ 41,427 136,828 Fund Balances, October 1 184,467 184,467 184,467 184,467 184,467 Fund Balances, September 30 192,377$ 89,066$ 170,470$ 225,894$ 321,295$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balances Red Light Camera Fund For the Fiscal Year Ended September 30, 2009 Budget and Actual 89 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Taxes Ad valorem 170,000$ 170,000$ 86,340$ -$ 86,340$ (83,660)$ Investment Income 1,138 1,138 785 - 785 (353) Total Revenues 171,138 171,138 87,125 - 87,125 (84,013) Other Financing Uses Transfer Out - - (141,641) - (141,641) (141,641) Total Other Financing Uses - - (141,641) - (141,641) (141,641) Net Change in Fund Balances 171,138 171,138 (54,516)-$ (54,516) (225,654) Fund Balances, October 1 54,516 54,516 54,516 54,516 54,516 Fund Balances, September 30 225,654$ 225,654$ -$ -$ (171,138)$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balances Northgate Tax Increment Financing District Fund For the Fiscal Year Ended September 30, 2009 Budget and Actual 90 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Charges for Services 1,173,740$ 1,173,740$ 351,474$ -$ 351,474$ (822,266)$ Investment Income --8,787 -8,787 8,787 Total Revenues 1,173,740 1,173,740 360,261 -360,261 (813,479) Expenditures Parks and Recreation -51,829 42,496 -42,496 (9,333) Total Expenditures -51,829 42,496 -42,496 (9,333) Excess (Deficiency) of Revenues Over (Under) Expenditures 1,173,740 1,121,911 317,765 -317,765 (804,146) Other Financing Uses Transfer Out (640,000) (640,000)---640,000 Total Other Financing Uses (640,000) (640,000)---640,000 Net Change in Fund Balances 533,740 481,911 317,765 -$ 317,765 (164,146) Fund Balances, October 1 268,582 268,582 268,582 268,582 268,582 Fund Balances, September 30 802,322$ 750,493$ 586,347$ 586,347$ 104,436$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balances Memorial Cemetery Fund For the Fiscal Year Ended September 30, 2009 Budget and Actual 91 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Charges for Services 45,000$ 45,000$ 68,141$ -$ 68,141$ 23,141$ Investment Income 55,000 55,000 31,306 -31,306 (23,694) Contributions - - 4,272 - 4,272 4,272 Other - - (925) - (925) (925) Total Revenues 100,000 100,000 102,794 - 102,794 2,794 Expenditures Parks and Recreation --3,141 -3,141 3,141 Other --282 -282 282 Total Expenditures --3,423 -3,423 3,423 Excess (Deficiency) of Revenues Over (Under) Expenditures 100,000 100,000 99,371 -99,371 (629) Net Change in Fund Balances 100,000 100,000 99,371 -$ 99,371 (629) Fund Balances, October 1 1,555,199 1,555,199 1,555,199 1,555,199 1,555,199 Fund Balances, September 30 1,655,199$ 1,655,199$ 1,654,570$ 1,654,570$ 1,554,570$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balances Cemetery Perpetual Care Fund For the Fiscal Year Ended September 30, 2009 Budget and Actual 92 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Charges for Services 578,111$ 578,111$ 111,398$ -$ 111,398$ (466,713)$ Investment Income 14,500 14,500 4,001 -4,001 (10,499) Total Revenues 592,611 592,611 115,399 -115,399 (477,212) Expenditures Parks and Recreation 75,000 75,000 71,522 -71,522 (3,478) Other ------ Total Expenditures 75,000 75,000 71,522 -71,522 (3,478) Excess (Deficiency) of Revenues Over (Under) Expenditures 517,611 517,611 43,877 -43,877 (473,734) Net Change in Fund Balances 517,611 517,611 43,877 -$ 43,877 (473,734) Fund Balances, October 1 200,968 200,968 200,968 200,968 200,968 Fund Balances, September 30 718,579$ 718,579$ 244,845$ 244,845$ (272,766)$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balances Memorial Cemetery Perpetual Care Fund For the Fiscal Year Ended September 30, 2009 Budget and Actual 93 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Taxes Occupancy tax 3,360,000$ 3,360,000$ 3,574,649$ -$ 3,574,649$ 214,649$ Investment Income 75,000 75,000 11,404 -11,404 (63,596) Total Revenues 3,435,000 3,435,000 3,586,053 - 3,586,053 151,053 Expenditures Fiscal Services -20,000 20,665 -20,665 665 Parks and Recreation 24,000 24,000 506,468 484,496 21,972 (2,028) Reimbursed Administration 505,826 505,826 - (484,496) 484,496 (21,330) Contributions 1,650,000 1,700,000 1,699,300 - 1,699,300 (700) Total Expenditures 2,179,826 2,249,826 2,226,433 - 2,226,433 (23,393) Excess of Revenues Over Expenditures 1,255,174 1,185,174 1,359,620 - 1,359,620 174,446 Other Financing Uses Transfer Out (7,050,000) (7,050,000) (7,000,000) - (7,000,000) 50,000 Total Other Financing Uses (7,050,000) (7,050,000) (7,000,000) - (7,000,000) 50,000 Net Change in Fund Balances (5,794,826) (5,864,826) (5,640,380)-$ (5,640,380) 224,446 Fund Balances, October 1 7,579,646 7,579,646 7,579,646 - 7,579,646 7,579,646 Fund Balances, September 30 1,784,820$ 1,714,820$ 1,939,266$ 1,939,266$ 7,804,092$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balances Hotel Occupancy Tax Fund For the Fiscal Year Ended September 30, 2009 Budget and Actual 94 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Taxes Intergovernmental 4,024,517$ 4,024,517$ 1,067,117$ -$ 1,067,117$ (2,957,400)$ Other 20,000 20,000 13,276 -13,276 (6,724) Total Revenues 4,044,517 4,044,517 1,080,393 - 1,080,393 (2,964,124) Expenditures General Government 3,908,517 3,908,517 622,724 (283,074) 905,798 (3,002,719) Planning and Development Services --67,829 67,829 -- Parks and Recreation --16,624 16,624 -- Reimbursed Administration 116,000 116,000 -(84,453)84,453 (31,547) Total Expenditures 4,024,517 4,024,517 707,177 (283,074) 990,251 (3,034,266) Excess of Revenues Over Expenditures 20,000 20,000 373,216 283,074 90,142 70,142 Other FinancingUses Transfer Out --(94,403)-(94,403)(94,403) Total Other Financing Uses --(94,403)-(94,403)(94,403) Net Change in Fund Balances 20,000 20,000 278,813 283,074$ (4,261)(24,261) Fund Balances, October 1 733,906 733,906 733,906 733,906 733,906 Prior Period Adjustment 576,580 Fund Balances, September 30 753,906$ 753,906$ 1,589,299$ 729,645$ 709,645$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balances Community Development Fund For the Fiscal Year Ended September 30, 2009 Budget and Actual 95 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Taxes Ad valorem 982,000$ 982,000$ 973,012$ -$ 973,012$ (8,988)$ Investment Income 10,000 10,000 35,379 -35,379 25,379 Total Revenues 992,000 992,000 1,008,391 - 1,008,391 16,391 Expenditures Current Parks and Recreation --714 -714 714 Reimbursed Administration ---(6,551)6,551 6,551 Capital Outlay 1,196,115 1,196,115 15,263 15,066 197 (1,195,918) Debt Service Total Expenditures 1,196,115 1,196,115 15,977 8,515 7,462 (1,188,653) Excess (Deficiency) of Revenues Over (Under) Expenditures (204,115) (204,115) 992,414 (8,515) 1,000,929 1,205,044 Other Financing Sources Transfer In --8,515 8,515 -- Total Other Financing Sources --8,515 8,515 -- Net Change in Fund Balances (204,115) (204,115) 1,000,929 -$ 1,000,929 1,205,044 Fund Balances, October 1 1,586,438 1,586,438 1,586,438 1,586,438 1,586,438 Fund Balances, September 30 1,382,323$ 1,382,323$ 2,587,367$ 2,587,367$ 2,791,482$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balances Wolf Pen Creek Tax Increment Financing District Fund For the Fiscal Year Ended September 30, 2009 Budget and Actual 96 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Investment Income 8,000$ 8,000$ (36,127)$ -$ (36,127)$ (44,127)$ Rents and Royalties --476,490 -476,490 476,490 Total Revenues 8,000 8,000 440,363 -440,363 432,363 Expenditures General Government -150,000 49,009 -49,009 (100,991) Other --17,190 -17,190 17,190 Capital Outlay 7,000,000 9,600,000 9,639,985 - 9,639,985 39,985 Fiscal Charges --19,735 -19,735 19,735 Total Expenditures 7,000,000 9,750,000 9,725,919 - 9,725,919 (24,081) Excess (Deficiency) of Revenues Over (Under) Expenditures (6,992,000) (9,742,000) (9,285,556)- (9,285,556) 456,444 Other Financing Sources (Uses) Insurance of Debt - 2,600,000 3,220,000 - 3,220,000 620,000 Transfers In 7,000,000 7,141,641 7,141,641 - 7,141,641 - Transfer Out (130,671) (130,671) (130,671)- (130,671)- Total Other Financing Sources 6,869,329 9,610,970 10,230,970 - 10,230,970 620,000 Net Change in Fund Balances (122,671) (131,030) 945,414 -$ 945,414 1,076,444 Fund Balances, October 1 341,251 341,251 341,251 341,251 341,251 Fund Balances, September 30 218,580$ 210,221$ 1,286,665$ 1,286,665$ 1,417,695$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balances Convention Center Fund For the Fiscal Year Ended September 30, 2009 Budget and Actual 97 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Investment Income 25,000$ 25,000$ 32,650$ -$ 32,650$ 7,650$ Other 290,000 290,000 237,094 -237,094 (52,906) Total Revenues 315,000 315,000 269,744 -269,744 (45,256) Expenditures Reimbursed Administration - - - 9,101 9,101 9,101 Other - - - 1,757 1,757 1,757 Capital Outlay 944,957 1,007,422 381,918 46 381,964 (625,458) Total Expenditures 944,957 1,007,422 381,918 10,904 392,822 (614,600) Excess (Deficiency) of Revenues Over (Under) Expenditures (629,957) (692,422) (112,174) (10,904) (123,078) 569,344 Other Financing Uses Transfer Out - - (9,101) - (9,101) (9,101) Total Other Financing Uses - - (9,101) - (9,101) (9,101) Net Change in Fund Balances (629,957) (692,422) (121,275)10,904$ (132,179) 560,243 Fund Balances, October 1 1,610,534 1,610,534 1,610,534 - 1,610,534 1,610,534 Fund Balances, September 30 980,577$ 918,112$ 1,489,259$ 1,478,355$ 2,170,777$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balances Parks Escrow Fund For the Fiscal Year Ended September 30, 2009 Budget and Actual 98 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Investment Income 22,000$ 22,000$ 13,539$ -$ 13,539$ (8,461)$ Reimbursed Expenditures --20,000 -20,000 20,000 Total Revenues 22,000 22,000 33,539 -33,539 11,539 Expenditures Capital Outlay - - 20,066 - 20,066 20,066 Total Expenditures - - 20,066 - 20,066 20,066 Excess (Deficiency) of Revenues Over (Under) Expenditures 22,000 22,000 13,473 - 13,473 (8,527) Other Financing Uses Transfer Out (250,000) (250,000) (250,000) - (250,000) - Total Other Financing Uses (250,000) (250,000) (250,000) - (250,000) - Net Change in Fund Balances (228,000) (228,000) (236,527)-$ (236,527)(8,527) Fund Balances, October 1 845,640 845,640 845,640 845,640 845,640 Fund Balances, September 30 617,640$ 617,640$ 609,113$ 609,113$ 837,113$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balances Business Park Fund For the Fiscal Year Ended September 30, 2009 Budget and Actual 99 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Special Assessment 1,758,670$ 1,758,670$ 1,793,174$ -$ 1,793,174$ 34,504$ Investment Income 39,000 39,000 56,829 -56,829 17,829 Total Revenues 1,797,670 1,797,670 1,850,003 - 1,850,003 52,333 Expenditures Fiscal Services --70,622 -70,622 70,622 Public Works 7,200 7,200 1,107,899 1,101,276 6,623 (577) Reimbursed Administration 1,664,494 1,664,494 - (1,538,978) 1,538,978 (125,516) Other --12,991 -12,991 12,991 Capital Outlay 392,000 392,000 360,995 18,135 342,860 (49,140) Total Expenditures 2,063,694 2,063,694 1,552,507 (419,567) 1,972,074 (91,620) Excess (Deficiency) of Revenues Over (Under) Expenditures (266,024) (266,024) 297,496 419,567 (122,071) 143,953 Other Financing Uses Transfer Out -- (419,567) (419,567)-- Total Other Financing Uses -- (419,567) (419,567)-- Net Change in Fund Balances (266,024) (266,024) (122,071)-$ (122,071) 143,953 Fund Balances, October 1 3,054,197 3,054,197 3,054,197 3,054,197 3,054,197 Fund Balances, September 30 2,788,173$ 2,788,173$ 2,932,126$ 2,932,126$ 3,198,150$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balances Drainage Fund For the Fiscal Year Ended September 30, 2009 Budget and Actual 100 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Investment Income 172,000$ 172,000$ 187,969$ -$ 187,969$ 15,969$ Reimbursed Expenditures --9,350 -9,350 9,350 Total Revenues 172,000 172,000 197,319 -197,319 25,319 Expenditures Police --3,887 -3,887 3,887 Reimbursed Administration 96,427 96,427 - (189,074) 189,074 92,647 Other -25,000 ---(25,000) Capital Outlay 302,977 7,383,786 7,968,174 252,007 7,716,167 332,381 Fiscal Charges 30,000 30,000 11,076 -11,076 (18,924) Total Expenditures 429,404 7,535,213 7,983,137 62,933 7,920,204 384,991 Deficiency of Revenues Under Expenditures (257,404) (7,363,213) (7,785,818)(62,933) (7,722,885) (359,672) Other Financing Sources (Uses) Issuance of Debt 3,040,000 10,030,000 4,010,000 - 4,010,000 (6,020,000) Sales of Capital Assets --500,000 -500,000 500,000 Transfers In 643,240 662,749 85,682 (62,933) 148,615 (514,134) Transfer Out ----- Total Other Financing Sources (Uses)3,683,240 10,692,749 4,595,682 (62,933) 4,658,615 (6,034,134) Net Change in Fund Balances 3,425,836 3,329,536 (3,190,136)-$ (3,064,270) (6,393,806) Fund Balances, October 1 12,308,858 12,308,858 12,308,858 12,308,858 12,308,858 Fund Balances, September 30 15,734,694$ 15,638,394$ 9,118,722$ 9,244,588$ 5,915,052$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balances General Government Projects Fund For the Fiscal Year Ended September 30, 2009 Budget and Actual 101 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Charges for Services 86,700$ 86,700$ 89,556$ -$ 89,556$ 2,856$ Investment Income 28,000 28,000 23,920 -23,920 (4,080) Other --244 -244 244 Total Revenues 114,700 114,700 113,720 -113,720 (980) Expenditures Reimbursed Administration 74,211 74,211 -(78,969)78,969 4,758 Capital Outlay 179,100 2,436,277 2,145,430 10,943 2,134,487 (301,790) Fiscal Charges - - 1,534 - 1,534 1,534 Total Expenditures 253,311 2,510,488 2,146,964 (68,026) 2,214,990 (295,498) Excess (Deficiency) of Revenues Over (Under) Expenditures (138,611) (2,395,788) (2,033,244) 68,026 (2,101,270) 294,518 Other Financing Sources (Uses) Issuance of Debt - 2,225,000 1,535,000 - 1,535,000 (690,000) Transfers In 86,896 86,896 86,961 - 86,961 65 Transfer Out - - (68,026) (68,026) - - Total Other Financing Sources (Uses) 86,896 2,311,896 1,553,935 (68,026) 1,621,961 (689,935) Net Change in Fund Balances (51,715)(83,892) (479,309)-$ (479,309) (395,417) Fund Balances, October 1 1,815,256 1,815,256 1,815,256 1,815,256 1,815,256 Fund Balances, September 30 1,763,541$ 1,731,364$ 1,335,947$ 1,335,947$ 1,419,839$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balances Parks and Recreation Projects Fund For the Fiscal Year Ended September 30, 2009 Budget and Actual 102 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Investment Income 279,000$ 279,000$ 382,129$ -$ 382,129$ 103,129$ Reimbursed Expenditures --24,543 -24,543 24,543 Total Revenues 279,000 279,000 406,672 -406,672 127,672 Expenditures Reimbursed Administration 424,682 424,682 - (612,535) 612,535 187,853 Capital Outlay 1,398,882 2,088,882 11,399,570 167,469 11,232,101 9,143,219 Fiscal Charges 11,000 11,000 1,067 -1,067 (9,933) Intergovernmental --745,908 363,832 382,076 382,076 Total Expenditures 1,834,564 2,524,564 12,146,545 (81,234) 12,227,779 9,703,215 Excess (Deficiency) of Revenues Over (Under) Expenditures (1,555,564) (2,245,564) (11,739,873) 81,234 (11,821,107) (9,575,543) Other Financing Sources (Uses) Issuance of Debt 1,095,000 1,603,000 1,050,000 - 1,050,000 (553,000) Transfers In 130,671 130,671 130,671 - 130,671 - Transfer Out - - (81,234) (81,234) - - Total Other Financing Sources (Uses) 1,225,671 1,733,671 1,099,437 (81,234) 1,180,671 (553,000) Net Change in Fund Balances (329,893) (511,893) (10,640,436)-$ (10,640,436)(10,128,543) Fund Balances, October 1 24,388,395 24,388,395 24,388,395 24,388,395 24,388,395 Fund Balances, September 30 24,058,502$ 23,876,502$ 13,747,959$ 13,747,959$ 14,259,852$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balances Streets Projects Fund For the Fiscal Year Ended September 30, 2009 Budget and Actual 103 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Taxes Ad valorem 12,285,432$ 12,285,432$ 12,087,412$ -$ 12,087,412$ (198,020)$ Penalty and interest --51,325 -51,325 51,325 Investment Income 200,000 200,000 111,370 -111,370 (88,630) Reimbursed Expenditures --1,102 -1,102 1,102 Total Revenues 12,485,432 12,485,432 12,251,209 - 12,251,209 (234,223) Expenditures Debt Service Principal Retirement 9,125,000 9,085,000 7,935,000 - 7,935,000 (1,150,000) Interest Payments 5,319,475 5,073,927 4,114,356 - 4,114,356 (959,571) Fiscal Charges 20,000 20,000 13,139 -13,139 (6,861) Total Expenditures 14,464,475 14,178,927 12,062,495 - 12,062,495 (2,116,432) Excess (Deficiency) of Revenues Over (Under) Expenditures (1,979,043) (1,693,495) 188,714 -188,714 1,882,209 Other Financing Sources (Uses) Transfers In 2,414,345 2,414,345 180,350 -180,350 (2,233,995) Transfer Out -- (285,548)- (285,548) (285,548) Total Other Financing Sources (Uses)2,414,345 2,414,345 (105,198)- (105,198) (2,519,543) Net Change in Fund Balances 435,302 720,850 83,516 -$ 83,516 (637,334) Fund Balances, October 1 3,817,694 3,817,694 3,817,694 3,817,694 3,817,694 Fund Balances, September 30 4,252,996$ 4,538,544$ 3,901,210$ 3,901,210$ 3,180,360$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balances Debt Service Fund For the Fiscal Year Ended September 30, 2009 Budget and Actual 104 COMBINING FINANCIAL STATEMENTS NONMAJOR ENTERPRISE FUNDS Sanitation - to account for all sanitation collection and disposal activities by the City for both residential and commercial customers. Northgate Parking Garage - to account for revenues and expenses related to the operation and maintenance of the Northgate parking garage and parking lot. 105 Sanitation Northgate Parking Garage Total Current Assets Equity in Cash and Cash Equivalents 474,724$ 1,066,895$ 1,541,619$ Equity in Investments 116,538 261,907 378,445 Restricted Assets Equity in Cash and Cash Equivalents 8,221,696 - 8,221,696 Equity in Investments 2,018,304 - 2,018,304 Receivables Accrued Interest 24,801 3,018 27,819 Accounts 960,935 47,757 1,008,692 Less: Allowance for Uncollectible Accounts (122,012)(217) (122,229) Inventories 16,532 -16,532 Total Current Assets 11,711,518 1,379,360 13,090,878 Noncurrent Assets Equity in Joint Venture 12,551,808 - 12,551,808 Bond Issuance Charges 46,963 -46,963 Total Deferred Charges 46,963 -46,963 Property and Equipment Buildings - 5,743,755 5,743,755 Machinery and Equipment 338,043 299,038 637,081 Accumulated Depreciation (338,043) (1,300,455) (1,638,498) Land -690,707 690,707 Total Property and Equipment - 5,433,045 5,433,045 Total Noncurrent Assets 12,598,771 5,433,045 18,031,816 Total Assets 24,310,289 6,812,405 31,122,694 Liabilities Current Liabilities Accounts Payable 96,220 20,042 116,262 Accrued Liabilities 116,691 21,278 137,969 Other Deferred Revenues 21,200 59,732 80,932 Payable from Restricted Assets Accrued Interest Payable 51,684 29,823 81,507 Refundable Deposits -12,199 12,199 Certificates of Obligation 355,000 310,000 665,000 Total Current Liablities 640,795 453,074 1,093,869 Noncurrent Liabilities Certificates of Obligation 9,935,000 4,220,000 14,155,000 Accrued Vacation 64,000 3,089 67,089 Total Noncurrent Liabilites 9,999,000 4,223,089 14,222,089 Total Liabilities 10,639,795 4,676,163 15,315,958 Net Assets Invested in Capital Assets, net of related debt -903,045 903,045 Restricted for: Capital Projects 10,240,000 - 10,240,000 Inventories 16,532 -16,532 Unrestricted 3,413,962 1,233,197 4,647,159 Total Net Assets 13,670,494$ 2,136,242$ 15,806,736$ CITY OF COLLEGE STATION, TEXAS Combining Statement of Net Assets Nonmajor Enterprise Funds September 30, 2009 106 Sanitation Northgate Parking Garage Total Operating Revenues Charges for Services 6,886,710$ 990,735$ 7,877,445$ Other 46,462 -46,462 Total Operating Revenues 6,933,172 990,735 7,923,907 Operating Expenses Salaries and Benefits 1,810,198 280,792 2,090,990 Supplies 299,790 16,413 316,203 Maintenance 512,450 30,276 542,726 Purchased Professional Services 576,987 68,865 645,852 Purchased Property Services 1,536,662 51,705 1,588,367 Other Purchased Services 886,981 24,406 911,387 Depreciation -170,059 170,059 Other 178,395 20 178,415 Total Operating Expenses 5,801,463 642,536 6,443,999 Operating Income 1,131,709 348,199 1,479,908 Nonoperating Revenues (Expenses) Investment Income 52,299 23,063 75,362 Grants 17,792 - 17,792 Earnings in Joint Venture 1,055,623 - 1,055,623 Interest Expense (51,684) (275,371) (327,055) Other, Net (50,675) 5,320 (45,355) Total Nonoperating Revenues (Expenses) 1,023,355 (246,988) 776,367 Income Before Capital Contributions and Transfers 2,155,064 101,211 2,256,275 Transfers Transfers In - 285,548 285,548 Transfers Out (885,147) (88,970) (974,117) Total Capital Contributions and Transfers (885,147) 196,578 (688,569) Change in Net Assets 1,269,917 297,789 1,567,706 Beginning Net Assets 12,400,577 6,658,453 19,059,030 Prior Period Adjustment - (4,820,000) (4,820,000) Ending Net Assets 13,670,494$ 2,136,242$ 15,806,736$ CITY OF COLLEGE STATION, TEXAS Combining Statement of Revenues, Expenses and Changes in Net Assets Nonmajor Enterprise Funds For the Fiscal Year Ended September 30, 2009 107 Northgate Parking Sanitation Garage Total Cash Flows from Operating Activities: Cash Received from Customers 6,930,054$ 979,820$ 7,909,874$ Cash Payments to Suppliers for Goods and Services (3,922,319) (169,625) (4,091,944) Cash Payments to Employees for Services (1,807,232) (278,931) (2,086,163) Customer Deposits Received - 3,029 3,029 Cash Received for Reimbursed Expenses - - - Cash Received for Miscellaneous Revenues - 5,320 5,320 Cash Paid for Miscellaneous Expenses (50,675) - (50,675) Net Cash Provided by Operating Activities 1,149,828 539,613 1,689,441 Cash Flows from Noncapital Financing Activities: Transfers In from Other Funds - 285,548 285,548 Transfers Out to Other Funds (885,147) (88,970) (974,117) Net Cash Provied (Used) by Noncapital Financing Activities (885,147) 196,578 (688,569) Cash Flows from Capital and Related Financing Activities: Acquisition and Construction of Capital Assets - (48,847) (48,847) Principal Paid on Certificates of Obligation - (290,000) (290,000) Interest Paid on Certificates of Obligation - (245,548) (245,548) Proceeds from Certificates of Obligation 10,240,000 - 10,240,000 10,240,000 (584,395) 9,655,605 Cash Flows from Investing Activities: Purchase of Investments (6,204,232) (1,076,311) (7,280,543) Proceeds from Sale and Maturities of Investment Securities 4,181,481 1,191,260 5,372,741 Investment Income 28,938 21,811 50,749 Net Cash Provided (Used) by Investing Activities (1,993,813) 136,760 (1,857,053) Net Increase in Cash and Cash Equivalents 8,510,868 288,556 8,799,424 Cash and Cash Equivalents, Oct. 1 185,552 778,339 963,891 Cash and Cash Equivalents, Sept. 30 8,696,420$ 1,066,895$ 9,763,315$ Reconciliation of Operating Income to Net Cash Provided by Operating Activities: Operating Income 1,131,709$ 348,199$ 1,479,908$ Adjustment to Reconcile Operating Income to Net Cash Provided by Operating Activities: Depreciation, Bad Debt Expense, Inventory Loss - 170,059 170,059 Provision for Uncollectible Accounts 6,676 22 6,698 Miscellaneous Nonoperating Revenues - 5,320 5,320 Miscellaneous Nonoperating Expenses (50,675) - (50,675) Changes in Assets and Liabilities: Change in Accounts Receivable (6,526) 10,927 4,401 Change in Deferred Revenues 3,408 (21,842) (18,434) Change in Inventory 23,280 - 23,280 Change in Accounts Payable 27,351 17,739 45,090 Change in Accrued Liabilities 8,370 5,533 13,903 Change in Refundable Deposits - 3,029 3,029 Change in Accrued Vacation 6,235 627 6,862 Total Adjustments 18,119 191,414 209,533 Net Cash Provided by Operating Activities 1,149,828$ 539,613$ 1,689,441$ Net Cash Provided (Used) by Capital and Related Financing Activities CITY OF COLLEGE STATION, TEXAS Combining Statement of Cash Flows Nonmajor Enterprise Funds For the Fiscal Year Ended September 30, 2009 108 COMBINING FINANCIAL STATEMENTS INTERNAL SERVICE FUNDS Communication Services - to account for the activities related to the operation and maintenance of the City’s radio and telephone systems. Employee Benefits - to account for self-insurance activity related to administration of the City's health benefits plan. Equipment Replacement - to account for the purchase of City equipment such as vehicles and large motorized equipment, telephone and radio systems, and replacement assets for existing technological infrastructure equipment not budgeted in other funds. Fleet Maintenance - to account for all activities related to the management of the City’s vehicles and heavy equipment, including preventive maintenance and vehicle repair activities. Property and Casualty - to account for insurance activity relating to all claims filed for liability cases (both injury and property) and property losses incurred for City property. Unemployment - to account for self-insurance activity on claims filed under unemployment compensation laws. Utility Customer Service - 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. 109 CITY OF COLLEGE STATION, TEXAS Communication Services Employee Benefits Equipment Replacement Fleet Maintenance Current Assets Equity in Cash and Cash Equivalents -$ 4,277,666$ 4,325,381$ 294,037$ Equity in Investments - 1,050,103 1,061,817 72,182 Receivables Accrued Interest - 12,199 12,337 839 Accounts - 4,690 - - Other - 14 - - Less Allowance for Uncollectible Accounts - - - - Inventories - - - 65,705 Total Current Assets - 5,344,672 5,399,535 432,763 Property and Equipment Buildings - - - 786,525 Machinery and Equipment - - 22,918,991 259,884 Accumulated Depreciation - - (14,615,297) (527,002) Total Property and Equipment - - 8,303,694 519,407 Total Assets -$ 5,344,672$ 13,703,229$ 952,170$ Liabilities and Fund Equity Current Liabilities Accounts Payable -$ 187,392$ 9,115$ 13,535$ Claims Payable - 824,517 -- Accrued Liabilities --- 30,696 Total Current Liabilities - 1,011,909 9,115 44,231 Noncurrent Liabilities Accrued Vacation --- 44,475 Total Noncurrent Liabilities --- 44,475 Total Liabilities - 1,011,909 9,115 88,706 Fund Equity Invested in Capital Assets -- 8,303,694 519,407 Restricted for Inventories --- 65,705 Unallocated Retained Earnings (Deficits)- 4,332,763 5,390,420 278,352 Total Fund Equity - 4,332,763 13,694,114 863,464 Total Liabilities and Fund Equity -$ 5,344,672$ 13,703,229$ 952,170$ Combining Statement of Net Assets Internal Service Funds September 30, 2009 110 Property and Casualty Unemployment Utility Customer Service Workers' Compensation Total 906,326$ 181,304$ 64,120$ 1,668,171$ 11,717,005$ 222,490 44,508 15,740 409,511 2,876,351 2,585 517 177 4,757 33,411 25,000 - 47,247 - 76,937 - - 14,129 - 14,143 - - (24,028) - (24,028) - - - - 65,705 1,156,401 226,329 117,385 2,082,439 14,759,524 ----786,525 -- 1,410,083 - 24,588,958 -- (945,763)- (16,088,062) -- 464,320 - 9,287,421 1,156,401$ 226,329$ 581,705$ 2,082,439$ 24,046,945$ 585,951$ 19,321$ 32,581$ 5,519$ 853,414$ 390,378 --335,017 1,549,912 -- 51,059 -81,755 976,329 19,321 83,640 340,536 2,485,081 -- 59,151 -103,626 -- 59,151 -103,626 976,329 19,321 142,791 340,536 2,588,707 -- 464,320 - 9,287,421 ----65,705 180,072 207,008 (25,406) 1,741,903 12,105,112 180,072 207,008 438,914 1,741,903 21,458,238 1,156,401$ 226,329$ 581,705$ 2,082,439$ 24,046,945$ 111 Communication Services Employee Benefits Equipment Replacement Fleet Maintenance Operating Revenues Charges for Services 927,731$ -$ 4,916,551$ 1,799,400$ Premiums - 6,443,797 -- Other -68,317 - Total Operating Revenues 927,731 6,512,114 4,916,551 1,799,400 Operating Expenses Salaries and Benefits 400,201 70,337 - 789,009 Supplies 33,573 -220,581 679,532 Maintenance 91,092 -- 32,496 Purchased Professional Services 62,998 --401 Purchased Property Services 21,366 -- 17,284 Other Purchased Services 43,640 - - 56,474 Claims - 6,246,179 - - Administration Fees - 510,386 - - Premiums - 628,369 - - Depreciation - - 2,271,726 28,424 Other 106,661 64,225 - (67,945) Total Operating Expenses 759,531 7,519,496 2,492,307 1,535,675 Operating Income 168,200 (1,007,382) 2,424,244 263,725 Nonoperating Revenues (Expenses) Investment Income 4,512 109,066 105,734 6,113 Reimbursed Expenses - - - 180 Grants - 3,363 - - Other, Net - 14 (421,193) 779 Total Nonoperating Revenues (Expenses) 4,512 112,443 (315,459) 7,072 Income (Loss) Before Operating Transfers 172,712 (894,939) 2,108,785 270,797 Transfers Transfers Out (313,913) - (1,093,259) (969) Total Operating Transfers (313,913) - (1,093,259) (969) Change in Net Assets (141,201) (894,939) 1,015,526 269,828 Beginning Net Assets 141,201 5,227,702 12,678,588 593,636 Ending Net Assets -$ 4,332,763$ 13,694,114$ 863,464$ CITY OF COLLEGE STATION, TEXAS Combining Statement of Revenues, Expenses and Changes in Net Assets Internal Service Funds For the Fiscal Year Ended September 30, 2009 112 Property and Casualty Unemployment Utility Customer Service Workers' Compensation Total -$ -$ 1,992,341$ -$ 9,636,023$ 945,958 31,926 - 857,085 8,278,766 - - 207,538 - 275,855 945,958 31,926 2,199,879 857,085 18,190,644 70,598 - 1,334,767 63,210 2,728,122 - - 68,760 28,334 1,030,780 - - 45,763 - 169,351 6,000 - 90,624 6,000 166,023 -- 36,610 -75,260 -- 688,937 -789,051 212,640 63,603 -78,062 6,600,484 1,302,945 --52,000 1,865,331 246,795 --138,132 1,013,296 -- 55,977 - 2,356,127 4,250 -9,929 6,750 123,870 1,843,228 63,603 2,331,367 372,488 16,917,695 (897,270) (31,677) (131,488) 484,597 1,272,949 23,142 4,602 - 34,880 288,049 40,512 - - - 40,692 - - - - 3,363 19,155 -159 131,919 (269,167) 82,809 4,602 159 166,799 62,937 (814,461)(27,075) (131,329) 651,396 1,335,886 ---- (1,408,141) ---- (1,408,141) (814,461)(27,075) (131,329) 651,396 (72,255) 994,533 234,083 570,243 1,090,507 21,530,493 180,072$ 207,008$ 438,914$ 1,741,903$ 21,458,238$ 113 Communication Employee Equipment Fleet Services Benefits Replacement Maintenance Cash Flows from Operating Activities: Cash Received from Customers 927,731$ 6,512,100$ 4,916,551$ 1,799,400$ Cash Payments to Suppliers for Goods and Services (362,883) (7,217,095) (242,265) (712,226) Cash Payments to Employees for Services (431,281) - - (767,464) Cash Received for Reimbursed Expenses - - - 180 Cash Received for Miscellaneous Revenues - 3,377 - 779 Net Cash Provided (Used) by Operating Activities 133,567 (701,618) 4,674,286 320,669 Cash Flows from Noncapital Financing Activities: Transfers Out to Other Funds (313,913) - (1,093,239) (969) Net Cash Used by Noncapital Financing Activities (313,913) - (1,093,239) (969) Cash Flows from Capital and Related Financing Activities: Acquisition and Construction of Capital Assets - - (2,670,535) - Proceeds from Sale of Assets - - 66,953 - Net Cash Used by Capital and Related Financing Activities - - (2,603,582) - Cash Flows from Investing Activities: Purchase of Investments (21,098) (4,706,001) (4,281,792) (217,025) Proceeds from Sale and Maturities of Investment Securities 146,430 5,564,702 4,608,768 165,168 Investment Income 4,824 121,606 111,396 4,563 Net Cash Provided (Used) by Investing Activities 130,156 980,307 438,372 (47,294) Net Increase in Cash and Cash Equivalents (50,190) 278,689 1,415,837 272,406 Cash and Cash Equivalents, Oct. 1 50,190 3,998,977 2,909,544 21,631 Cash and Cash Equivalents, Sept. 30 -$ 4,277,666$ 4,325,381$ 294,037$ Reconciliation of Operating Income to Net Cash Provided by Operating Activities: Operating Income 168,200$ (1,007,382)$ 2,424,244$ 263,725$ Adjustment to Reconcile Operating Income to Net Cash Provided by Operating Activities: Depreciation, Bad Debt Expense, Inventory Loss - - 2,271,726 28,424 Provision for Uncollectible Accounts - - - - Miscellaneous Nonoperating Revenues - 3,363 - 627 Changes in Assets and Liabilities: Change in Accounts Receivable - (14) - - Change in Inventory - - - 33,803 Change in Accounts Payable (7,760) 43,087 (21,684) (1,839) Change in Claims Payable - 259,328 - - Change in Accrued Liabilities (15,587) - - 763 Change in Accrued Vacation (11,286) - - (4,834) Total Adjustments (34,633) 305,764 2,250,042 56,944 Net Cash Provided (Used) by Operating Activities 133,567$ (701,618)$ 4,674,286$ 320,669$ CITY OF COLLEGE STATION, TEXAS Combining Statement of Cash Flows Internal Service Funds For the Fiscal Year Ended September 30, 2009 114 Property and Utility Customer Workers' Casualty Unemployment Services Compensation Total 945,958$ 31,926$ 2,191,004$ 857,085$ 18,181,755$ (1,269,679) (45,543) (899,884) (499,077) (11,248,652) - - (1,365,822) - (2,564,567) 40,512 - - - 40,692 19,155 - 159 131,919 155,389 (264,054) (13,617) (74,543) 489,927 4,564,617 - - - - (1,408,121) - - - - (1,408,121) - - - - (2,670,535) - - - - 66,953 - - - - (2,603,582) (1,029,770) (305,245) (360,050) (1,664,011) (12,584,992) 1,248,825 336,460 386,103 1,755,672 14,212,128 26,280 5,066 514 36,618 310,867 245,335 36,281 26,567 128,279 1,938,003 (18,719) 22,664 (47,976) 618,206 2,490,917 925,045 158,640 112,096 1,049,965 9,226,088 906,326$ 181,304$ 64,120$ 1,668,171$ 11,717,005$ (897,270)$ (31,677)$ (131,488)$ 484,597$ 1,272,949$ - - 55,977 - 2,356,127 - - (783) - (783) 59,667 - 159 131,919 195,735 - - (8,875) - (8,889) - - - - 33,803 557,001 18,060 10,846 5,330 603,041 16,548 - - (131,919) 143,957 - - (111) - (14,935) - - (268) - (16,388) 633,216 18,060 56,945 5,330 3,291,668 (264,054)$ (13,617)$ (74,543)$ 489,927$ 4,564,617$ 115 116 STATISTICAL SECTION - UNAUDITED This section of the City of College Station’s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial condition. Contents Financial Trends These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time. (Pages 119-125) Revenue Capacity These schedules contain information to help the reader assess the factors affecting the City’s ability to generate its property and sales taxes. (Pages 126-133) Debt Capacity These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future. (Pages 134-138) Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place and to help make comparisons over time and with other governments. (Pages 139-140) Operating Information These schedules contain information about the City’s operations and resources to help the reader understand how the City’s financial information relates to the services the City provides and the activities it performs. (Pages 141-144) Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. The City implemented GASB Statement 34 in 2003; schedules presenting government-wide information include information beginning in that year. The City implemented GASB Statement 54 in 2009; schedules presenting governmental fund balance reclassifications begin in that year. 117 118 Fiscal Year 2004 2005 2006 2007 2008 2009 Governmental activities Invested in capital assets, net of related debt 100,066,963$ 106,460,949$ 108,287,795$ 113,750,039$ 114,935,845$ 89,475,869$ Restricted 4,289,623 4,289,531 4,564,184 5,089,422 6,357,013 48,296,712 Unrestricted 25,962,837 27,897,090 39,602,065 45,967,901 59,703,654 51,547,682 Total governmental activities net assets 130,319,423$ 138,647,570$ 152,454,044$ 164,807,362$ 180,996,512$ 189,320,263$ Business-type activities Invested in capital assets, net of related debt 130,810,275$ 132,001,489$ 142,778,246$ 147,043,092$ 145,066,758$ 130,924,993$ Restricted 2,651,325 2,797,735 2,920,980 3,056,356 1,590,977 20,286,147 Unrestricted 29,665,429 30,830,640 32,980,043 37,474,945 43,957,844 46,933,094 Total business-type activities net assets 163,127,029$ 165,629,864$ 178,679,269$ 187,574,393$ 190,615,579$ 198,144,234$ Primary government Invested in capital assets, net of related debt 230,877,238$ 238,462,438$ 251,066,041$ 260,793,131$ 260,002,603$ 220,400,862$ Restricted 6,940,948 7,087,266 7,485,164 8,145,778 7,947,990 68,582,859 Unrestricted 55,628,266 58,727,730 72,582,108 83,442,846 103,661,498 98,480,776 Total primary government net assets 293,446,452$ 304,277,434$ 331,133,313$ 352,381,755$ 371,612,091$ 387,464,497$ Source: City of College Station Note: The City began to report accrual information when it implemented GASB Statement 34 in fiscal year 2003 LAST SIX FISCAL YEARS NET ASSETS BY COMPONENT CITY OF COLLEGE STATION, TEXAS (accrual basis of accounting) 119 Fiscal Year 2004 2005 2006 2007 2008 2009 Expenses Governmental activities: General government 7,536,427$ 6,457,556$ 7,755,725$ 7,654,393$ 8,551,304$ 8,631,908$ Fiscal services 1,953,189 2,467,187 2,452,442 2,442,439 2,977,362 3,821,996 Police 9,654,447 10,666,318 11,214,413 12,299,698 13,395,874 13,945,079 Fire 7,189,495 7,853,876 8,280,257 9,472,331 11,359,260 11,778,585 Planning and development services 1,586,114 1,580,317 1,449,327 1,603,963 1,910,359 2,823,296 Public works 5,004,976 5,401,568 6,227,707 6,620,846 9,467,081 16,804,436 Capital projects - - - - 719,391 476,462 Parks and recreation 6,154,862 6,549,466 7,353,984 9,148,511 10,385,095 11,189,359 Information services 2,652,957 2,881,863 3,087,596 2,689,720 2,749,327 3,471,714 Interest on long-term debt 3,448,533 3,895,520 4,116,871 4,291,022 3,860,801 4,135,146 Unallocated depreciation 2,690,998 5,430,745 5,759,049 6,026,372 667,890 789,074 Total governmental activities expense 47,871,998 53,184,416 57,697,371 62,249,295 66,043,744 77,867,055 Business-type activities: Electric 41,120,750 47,815,339 51,250,110 60,242,408 70,485,984 77,441,351 Water 6,542,184 7,908,695 7,770,081 8,302,863 8,706,415 9,287,343 Sewer 7,214,296 7,262,208 7,973,677 8,179,813 9,159,176 9,829,813 Sanitation 4,848,591 4,931,079 5,421,624 5,916,431 6,244,639 5,776,002 Cedar Creek Condominiums 61,150 - - - - - Northgate parking 550,544 591,944 621,593 591,980 668,237 909,167 Total business-type activities expense 60,337,515 68,509,265 73,037,085 83,233,495 95,264,451 103,243,676 Total primary government expense 108,209,513$ 121,693,681$ 130,734,456$ 145,482,790$ 161,308,195$ 181,110,731$ Program Revenues Governmental activities: Charges for services: Fines, forfeits and penalties 3,563,970$ 4,008,637$ 3,798,807$ 3,618,236$ 3,798,313$ 4,491,960$ Licenses and permits 1,215,924 1,043,672 1,091,848 1,306,690 1,154,902 1,007,151 Public works 1,784,694 1,110,686 1,290,935 1,199,565 1,255,525 1,793,174 Parks and recreation 1,346,580 1,044,134 1,244,476 1,420,284 1,911,789 1,838,810 Other activities 1,614,408 2,002,338 2,656,136 3,210,563 3,548,309 4,494,627 Operating grants and contributions 3,208,957 2,629,494 3,144,254 2,038,535 1,735,170 1,896,623 Capital grants and contributions 5,266,837 4,489,883 7,477,874 5,271,090 3,055,501 2,644,629 Total governmental activities program revenues 18,001,370 16,328,844 20,704,330 18,064,963 16,459,509 18,166,974 Business-type activities: Charges for services: Electric sales 47,431,497 51,467,169 60,217,421 67,462,075 76,787,412 82,904,777 Water sales 8,319,779 9,519,714 10,852,660 10,060,398 12,025,086 17,312,431 Sewer service 9,334,778 9,697,314 10,363,603 10,590,688 11,184,565 11,655,528 Garbage collection fees 4,829,150 5,151,204 6,419,446 7,512,194 9,628,798 7,988,795 Parking garage fees 603,465 480,627 576,892 620,124 673,818 990,735 Operating grants and contributions - - - - - 17,792 Capital grants and contributions 5,179,221 1,937,320 4,677,465 4,041,105 5,349,125 6,846,033 Total business-type activities program revenues 75,697,890 78,253,348 93,107,487 100,286,584 115,648,804 127,716,091 Total primary government program revenues 93,699,260$ 94,582,192$ 113,811,817$ 118,351,547$ 132,108,313$ 145,883,065$ (accrual basis of accounting) CITY OF COLLEGE STATION, TEXAS LAST SIX FISCAL YEARS CHANGES IN NET ASSETS 120 Fiscal Year 2004 2005 2006 2007 2008 2009 Net (Expense)/Revenue Governmental activities (29,870,628)$ (36,855,572)$ (36,993,041)$ (44,184,332)$ (49,584,235)$ (59,700,081)$ Business-type activities 15,360,375 9,744,083 20,070,402 17,053,089 20,384,355 24,472,415 Total primary government net expense (14,510,253)$ (27,111,489)$ (16,922,639)$ (27,131,243)$ (29,199,880)$ (35,227,666)$ General Revenues and Other Changes in Net Assets Governmental activities: Taxes Property taxes 14,668,641$ 15,888,475$ 16,646,519$ 18,573,309$ 20,670,112$ 22,769,699$ Sales and mixed beverage taxes 15,238,995 15,705,090 17,082,936 18,449,731 20,241,973 19,873,213 Franchise taxes 1,974,587 1,718,491 2,132,341 1,931,196 2,090,779 2,217,618 Hotel taxes 2,191,429 2,306,928 2,671,417 2,980,250 3,585,512 3,574,649 Unrestricted investment earnings 1,224,546 1,487,926 3,415,849 4,512,575 3,385,844 1,413,431 Gain (Loss) on sale of capital assets 4,386 (111,916) - - - - Adjustment to claims payable (904,263) - - - - - Transfers (904,783) 8,188,725 8,850,453 10,090,589 7,559,165 12,778,642 Total governmental activities 33,493,538 45,183,719 50,799,515 56,537,650 57,533,385 62,627,252 Business-type activities: Unrestricted investment earnings 662,359 947,477 1,829,456 1,932,624 1,330,785 654,882 Correction to value of capital assets 2,108,473 - - - - - Transfers 904,783 (8,188,725) (8,850,453) (10,090,589) (10,433,954) (12,778,642) Total business-type activities 3,675,615 (7,241,248) (7,020,997) (8,157,965) (9,103,169) (12,123,760) Total primary government 37,169,153$ 37,942,471$ 43,778,518$ 48,379,685$ 48,430,216$ 50,503,492$ Change in net assets Governmental activities 3,622,910$ 8,328,147$ 13,806,474$ 12,353,318$ 7,949,150$ 2,927,171$ Business-type activities 19,035,990 2,502,835 13,049,405 8,895,124 11,281,186 12,348,655 Total primary government 22,658,900$ 10,830,982$ 26,855,879$ 21,248,442$ 19,230,336$ 15,275,826$ Source: City of College Station Notes: The City began to report accrual information when it implemented GASB Statement 34 in fiscal year 2003. Adjustment to claims payable in fiscal year 2004 is a prior period adjustment. CITY OF COLLEGE STATION, TEXAS CHANGES IN NET ASSETS - Continued LAST SIX FISCAL YEARS (accrual basis of accounting) 121 Program Revenues200420052006200720082009Function/ProgramGovernmental activities: General government 3,618,878$ 3,121,430$ 4,357,597$ 3,343,904$ 2,501,778$ 1,957,500$ Fiscal services 333,043 508,810 547,790 409,100 684,666 38,377 Police 3,677,391 4,093,425 3,875,900 3,713,866 4,533,697 5,004,712 Fire 724,278 916,804 817,910 1,400,464 1,137,759 3,551,620 Planning and development services 1,215,924 1,043,672 1,091,848 1,306,690 1,357,037 1,051,943 Public works 7,051,531 5,600,569 8,768,809 6,470,655 4,312,571 4,445,595 Parks and recreation 1,380,325 1,044,134 1,244,476 1,420,284 1,932,001 2,117,227 Subtotal governmental activities 18,001,370 16,328,844 20,704,330 18,064,963 16,459,509 18,166,974 Business-type activities: Electric 48,032,185 52,780,914 62,284,935 69,033,816 77,419,441 84,552,573 Water 10,260,307 9,826,360 12,409,728 11,314,888 14,115,391 19,065,662 Sewer 11,972,783 10,014,243 11,416,486 11,805,562 13,811,356 15,100,534 Sanitation 4,829,150 5,151,204 6,419,446 7,512,194 9,628,798 8,006,587 Northgate parking 603,465 480,627 576,892 620,124 673,818 990,735 Subtotal business-type activities 75,697,890 78,253,348 93,107,487 100,286,584 115,648,804 127,716,091 Total primary government 93,699,260$ 94,582,192$ 113,811,817$ 118,351,547$ 132,108,313$ 145,883,065$ Source: City of College StationCITY OF COLLEGE STATION, TEXASPROGRAM REVENUES BY FUNCTION/PROGRAMLAST SIX FISCAL YEARS(accrual basis of accounting)122 2000200120022003200420052006200720082009General Fund Nonspendable62,390$ Restricted95,220 Assigned1,663,400 Unassigned7,557,419 Reserved543,396$ 660,488$ 989,028$ 1,728,294$ 1,089,510$ 1,132,180$ 1,523,619$ 1,108,449$ 2,305,476$ - Unreserved7,884,787 8,772,212 9,122,197 9,522,041 9,613,442 9,038,345 9,448,389 11,824,140 9,679,913 - Total general fund8,428,183$ 9,432,700$ 10,111,225$ 11,250,335$ 10,702,952$ 10,170,525$ 10,972,008$ 12,932,589$ 11,985,389$ 9,378,429$ All Other Governmental Funds Nonspendable859,654$ Restricted39,375,368 Commited 2,627,403 Assigned609,113 Unassigned545,024 Reserved28,691,651$ 9,395,621$ 10,685,338$ 41,119,894$ 42,522,379$ 42,999,111$ 49,111,974$ 46,372,274$ 48,819,538$ - Unreserved, reported in: Special revenue funds7,655,383 12,749,505 12,460,155 10,851,935 6,085,255 6,244,225 7,462,140 10,148,840 11,526,009 - Capital projects funds- 25,443,167 33,275,222 - - - - - - - Total all other governmental funds 36,347,034$ 47,588,293$ 56,420,715$ 51,971,829$ 48,607,634$ 49,243,336$ 56,574,114$ 56,521,114$ 60,345,547$ 44,016,562$ Source: City of College StationNote: Fiscal years 1998 through 2002 have been restated to include trust funds.The City implemented GASB Statement 54 in 2009; schedules presenting governmental fund balance reclassifications begin in that yearFiscal YearCITY OF COLLEGE STATION, TEXASFUND BALANCES, GOVERNMENTAL FUNDSLAST TEN FISCAL YEARS(modified accrual basis of accounting)123 2000200120022003200420052006200720082009RevenuesTaxes 25,429,183$ 27,254,701$ 29,499,644$ 31,277,451$ 34,073,652$ 35,618,984$ 38,533,213$ 41,934,486$ 46,588,376$ 48,435,179$ Licenses and permits680,776 779,159 870,636 1,012,960 1,112,766 1,025,013 945,593 1,191,105 1,154,902 1,007,151 Intergovernmental1,607,155 3,221,851 2,572,428 1,950,883 3,208,957 2,592,312 3,144,254 2,038,535 1,707,957 1,896,623 Charges for services1,819,069 2,038,422 2,251,297 2,610,056 2,538,583 2,634,683 2,925,281 3,339,352 3,790,147 3,543,064 Fines, forfeits and penalties1,393,566 1,798,870 2,225,354 2,657,643 2,966,278 3,518,940 3,285,907 3,256,488 3,798,313 4,491,960 Special assessments911,415 944,636 982,760 1,035,023 1,062,179 1,110,686 1,290,935 1,199,565 1,255,525 1,793,174 Investment income2,642,328 3,487,814 2,615,798 1,543,026 1,062,069 1,269,201 3,066,642 3,864,797 2,886,636 1,125,382 Rents and royalties167,927 213,832 228,392 233,026 256,023 243,831 244,864 261,225 279,004 769,150 Loan repayments6,879 9,979 9,626 11,322 5,418 2,541 - - - - Contributions166,975 448,949 356,369 475,913 784,402 37,182 12,281 31,605 27,213 26,997 Reimbursed expenditures- 531,307 32,803 7,258 28,393 - 145,749 479,675 46,038 413,751 Other revenues546,935 551,280 437,359 335,405 679,349 631,192 447,432 738,415 1,046,431 403,548 Total revenues35,372,208 41,280,800 42,082,466 43,149,966 47,778,069 48,684,565 54,042,151 58,335,248 62,580,542 63,905,979 ExpendituresGeneral government1,775,494 2,909,436 3,801,250 3,765,079 4,187,972 4,480,075 4,216,582 4,699,159 7,319,662 5,435,355 Fiscal services1,967,135 1,889,611 2,112,936 2,319,008 2,479,082 3,038,145 3,050,533 3,013,548 3,573,686 3,836,786 Police7,567,620 8,273,632 8,829,060 9,143,331 9,803,577 10,829,081 11,559,669 12,556,678 13,219,117 14,107,740 Fire5,179,104 5,702,804 6,340,775 6,989,125 7,275,289 7,964,785 8,493,228 9,622,195 11,251,400 11,754,088 Planning and development services1,558,036 1,887,378 1,883,224 1,935,277 1,964,001 1,962,603 1,877,732 2,008,901 2,281,747 2,871,341 Public works4,353,073 4,583,796 5,207,101 5,292,243 5,534,404 6,117,241 7,116,329 7,440,854 7,182,443 7,920,003 Capital improvement projects- - - - - - - - 715,707 476,462 Economic and community development773,703 41,623 122,074 6,369 16,886 11,281 - - - - Parks and recreation5,185,392 5,200,809 5,862,938 6,279,342 6,388,099 6,778,196 7,520,189 8,167,857 9,071,198 9,355,301 Information systems1,760,191 2,229,600 2,243,844 2,320,950 2,346,534 2,500,518 2,596,591 3,070,524 3,366,764 3,299,105 Library600,778 581,768 670,818 681,350 665,291 694,445 870,203 912,527 993,102 1,119,771 Reimbursed administrative(2,878,132) (3,538,877) (3,559,556) (3,703,529) (3,328,431) (3,485,807) (3,335,264) (3,305,040) (3,772,362) - Contributions1,829,125 1,541,173 1,348,885 1,573,651 2,504,589 1,895,742 1,995,564 1,855,961 2,151,592 2,489,562 Community development block grant- - 538,901 222,169 201,099 275,775 340,399 215,707 - - Home grant- - 626,848 408,779 304,580 439,243 840,211 323,811 - - Community development grant480,865 763,303 - - - - - - - - Other expenditures269,786 577,606 183,450 624,837 253,270 296,344 108,527 147,860 204,338 487,163 Capital outlay11,778,585 9,885,474 13,702,819 11,286,448 12,775,413 15,435,376 11,610,189 14,213,574 19,538,322 31,931,401 CITY OF COLLEGE STATION, TEXASCHANGES IN FUND BALANCES, GOVERNMENTAL FUNDSLAST TEN FISCAL YEARS(modified accrual basis of accounting)Fiscal Year124 2000200120022003200420052006200720082009Debt service Principal 3,463,614 4,475,000 5,950,000 5,820,000 10,110,000 6,190,000 7,285,000 7,820,000 8,530,000 7,935,000 Interest2,117,480 3,213,770 3,425,390 3,647,529 3,376,538 3,885,075 4,078,635 4,212,245 3,892,490 4,114,356 Issuance costs107,057 77,244 115,500 118,335 352,114 118,261 - - - - Fiscal charges8,016 8,926 8,752 12,500 15,332 13,871 152,729 527,806 70,796 46,551 Intergovernmental405,660 - - 223,608 221,902 97,621 743,117 342,630 881,604 745,908 Total expenditures48,302,582 50,304,076 59,415,009 58,966,401 67,447,541 69,537,871 71,120,163 77,846,797 90,471,606 107,925,893 Deficiency of revenues under expenditures(12,930,374) (9,023,276) (17,332,543) (15,816,435) (19,669,472) (20,853,306) (17,078,012) (19,511,549) (27,891,064) (44,019,914) Other Financing Sources (Uses)Proceeds from long-term debt14,113,000 7,292,870 20,056,200 6,570,000 16,375,000 13,347,581 15,700,000 7,890,000 19,970,000 9,815,000 Proceeds from refunding bonds- - - - 5,980,000 - - 10,255,000 - - Payment to bond escrow agent- - - - (6,260,371) - - (10,451,378) - - Premium on bonds issued- - - - 280,371 - - 373,648 - - Sale of capital assets55,403 580,909 30,106 19,563 4,386 12,182 17,500 318,103 10,981 505,606 Transfers in11,724,310 14,945,966 8,764,250 7,910,690 10,945,210 11,476,019 11,864,435 15,054,935 13,828,414 22,680,922 Transfers out(1,887,298) (1,550,693) (2,007,066) (1,993,594) (11,566,702) (3,879,201) (2,371,662) (2,021,178) (3,041,098) (8,494,139) Total other financing sources24,005,415 21,269,052 26,843,490 12,506,659 15,757,894 20,956,581 25,210,273 21,419,130 30,768,297 24,507,389 Net change in fund balances11,075,041$ 12,245,776$ 9,510,947$ (3,309,776)$ (3,911,578)$ 103,275$ 8,132,261$ 1,907,581$ 2,877,233$ (19,512,525)$ Debt services as a percentage of noncapital expenditures15.6%19.2%20.8%20.1%25.3%18.9%19.4%19.7%17.6%15.9%Source: City of College StationNotes: Direct capital expenditures have been removed from departmental expenditure lines and included in the capital outlay line item.Fiscal years 2000 through 2001 Community Development expenditures are not split between CDBG and HOME. In these years, they are stated as one line item.Fiscal years 2000 through 2002 have been restated to include trust funds.Fiscal YearCITY OF COLLEGE STATION, TEXASCHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS - ContinuedLAST TEN FISCAL YEARS(modified accrual basis of accounting)125 Fiscal Year Property Sales Hotel Franchise Mixed Drink Total2000 9,294,964 12,573,564 1,796,813 1,577,815 186,027 25,429,183 2001 10,735,576 12,773,722 1,843,419 1,644,627 257,357 27,254,701 2002 12,224,416 13,400,054 1,926,009 1,714,241 234,924 29,499,644 2003 13,441,000 13,780,639 2,120,015 1,688,947 246,850 31,277,451 2004 14,668,641 14,957,697 2,191,429 1,974,587 281,298 34,073,652 2005 15,888,475 15,445,404 2,306,928 1,718,491 259,686 35,618,984 2006 16,646,519 16,752,174 2,671,417 2,132,341 330,762 38,533,213 2007 18,573,309 18,077,973 2,980,250 1,931,196 371,758 41,934,486 2008 20,670,112 19,822,906 3,585,512 2,090,778 419,067 46,588,375 2009 22,769,698 19,438,179 3,574,649 2,217,619 435,034 48,435,179 Change2000-2009 145.0%54.6% 98.9% 40.6% 133.9%90.5%Source: City of College StationNote: Property taxes include general fund, debt service fund, Melrose Apartment TIF (2000-2002), Northgate TIF(2008-2009) and Wolf Pen Creek TIF (1996 - Present).CITY OF COLLEGE STATION, TEXASTAX REVENUE BY SOURCE, GOVERNMENTAL FUNDSLAST TEN FISCAL YEARS(modified accrual basis of accounting)126 Taxable AssessedCommercial Personal, InventoryValue as a Residentialand Industrialand Other Less Exemptions Less TIF (1)Total Taxable Total Direct Estimated Actual Percentage ofFiscal YearPropertyPropertyPropertyand Abatements Captured Value Assessed Value Tax Rate Taxable Value Actual Taxable Value2000 $ 1,394,367,040 $ 532,743,286 $ 493,708,598 $ 308,471,247 $ 37,318,353 $ 2,075,029,324 $ 0.4293 $ 2,075,029,324 100.00%20011,574,451,660 565,368,046 521,295,544 345,752,888 41,698,188 2,273,664,174 0.4293 2,273,664,174 100.00%20021,721,906,078 596,567,968 552,036,938 380,950,901 39,379,860 2,450,180,223 0.4777 2,450,180,223 100.00%20031,910,284,688 634,030,921 607,645,557 428,395,713 30,625,663 2,692,939,790 0.4777 2,674,807,515 100.68%20042,144,406,477 723,887,327 653,978,324 493,364,734 39,971,363 2,988,936,031 0.4653 2,988,936,031 100.00%20052,339,284,129 770,194,254 738,376,045 556,722,986 45,182,585 3,245,948,857 0.4640 3,250,329,407 99.87%20062,530,659,165 931,255,843 798,179,118 614,609,545 45,750,172 3,599,734,409 0.4394 3,599,734,409 100.00%20072,849,558,106 1,020,242,352 828,757,366 643,387,278 50,131,743 4,005,038,803 0.4394 4,005,038,803 100.00%20083,200,809,497 1,141,458,255 881,095,548 677,645,852 68,644,309 4,477,073,139 0.4394 4,477,073,139 100.00%20093,606,901,737 1,191,974,529 927,276,877 701,998,930 78,082,864 4,946,071,349 0.4394 4,946,071,349 100.00%Source: Brazos County Appraisal DistrictNotes: Assessed value is 100% of the estimated actual value.(1) Tax increment financing district (TIF).CITY OF COLLEGE STATION, TEXASASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTYLAST TEN FISCAL YEARS127 General Total College Fiscal Basic Obligation Direct Station Brazos Year Rate Debt Service Rate ISD County 2000 0.1631 0.2662 0.4293 1.7500 0.4170 2001 0.1662 0.2631 0.4293 1.7500 0.4100 2002 0.1846 0.2931 0.4777 1.7900 0.4200 2003 0.1946 0.2831 0.4777 1.7900 0.4146 2004 0.1921 0.2732 0.4653 1.7700 0.4350 2005 0.1942 0.2698 0.4640 1.7700 0.4726 2006 0.1896 0.2498 0.4394 1.6750 0.4650 2007 0.1910 0.2484 0.4394 1.4800 0.4550 2008 0.1910 0.2484 0.4394 1.2411 0.4650 2009 0.1934 0.2460 0.4394 1.2211 0.4800 Source: Brazos County Appraisal District Notes: (1) Tax rates are established by each taxing jurisdiction on an annual basis for revenues to be collected in the following fiscal year. The City must publish its effective and rollback tax rates before adopting an actual tax rate. If the City adopts a rate that exceeds the rollback rate, voters may petition for an election to limit the rate to the rollback rate. If the City adopts a rate that exceeds its effective rate, additional public hearings and notices are required. Rates for debt service are set based on each year's requirements. (2) The date that taxes are due for all jurisdictions is October 1. Taxes for all jurisdictions become delinquent on February 1. The penalty is set by state law at 6% in February, and an additional 1% per month up to 12%. The interest is accrued at 1% per month. (3) The upper limit of the tax rate is set at $2.50/$100 of assessed value for each jurisdiction by State Statute. This limit is for both operations and debt service combined. City Direct Rates Overlapping Rates CITY OF COLLEGE STATION, TEXAS DIRECT AND OVERLAPPING PROPERTY TAX RATES LAST TEN FISCAL YEARS (rate per $100 of assessed value) 128 Percent of Percent of of Total Cityof Total CityTaxableTaxableTaxableTaxable2008 AssessedAssessed1999 AssessedAssessedTaxpayerValueRankValueValueRankValueCollege Station Hospital LP61,308,070$ 11.24%17,378,000$ 80.84%C.B.L. & Associates (Post Oak Mall)55,651,375 21.13%50,068,184 12.41%Weinberg, Israel & David Alkosser42,388,230 30.86%29,115,550 41.40%Woodland of College Station LP36,846,840 40.74%ACC OP (Callaway Villas) LP30,736,980 50.62%Commonwealth Austin CH LP30,628,460 60.62%Walmart/Sam's28,803,300 70.58%18,763,740 70.90%University Heights - College Station LP28,789,920 80.58%Verizon Communications, Inc.28,277,520 90.57%34,435,310 31.66%SCI Gateway at CS Fund LLC Etal27,246,180 100.55%Scott & White Hospital/Clinic22,967,250 51.11%W9/JP-M Real Estate Ltd36,811,270 21.77%Lane College Station Ltd.13,200,000 100.64%Melrose Apartments20,596,000 60.99%University Commons17,316,075 90.83%370,676,875$ 7.49%260,651,379$ 12.55%Source: Brazos County Appraisal DistrictNotes: Verizon Communications was called GTE Southwest in fiscal year 2000 Weinberg, Israel & David Alkosser was called Alkosser, David Etal in fiscal year 2000.CITY OF COLLEGE STATION, TEXASPRINCIPAL PROPERTY TAXPAYERSCURRENT YEAR AND NINE YEARS AGO2009 2000 129 Fiscal Year Taxes Levied CollectionsEnded for thePercentage in SubsequentPercentageSept 30 Fiscal Year Amount of Levy YearsAmountof Levy2000 $ 9,068,352 $ 9,000,090 99.25% $ 61,939 $ 9,062,029 99.93%20019,939,852 9,835,960 98.95%94,297 9,930,257 99.90%2002 11,892,629 11,735,174 98.68% 148,869 11,884,043 99.93%2003 13,010,508 12,740,869 97.93% 257,891 12,998,760 99.91%2004 14,092,814 13,974,666 99.16% 104,967 14,079,633 99.91%2005 15,270,852 15,160,102 99.27%98,117 15,258,219 99.92%2006 16,162,073 15,938,981 98.62% 125,967 16,064,948 99.40%2007 17,818,419 17,697,220 99.32%18,572 17,715,792 99.42%2008 19,973,882 19,773,036 98.99%60,431 19,833,467 99.30%2009 22,076,134 21,795,748 98.73%- 21,795,748 98.73%Sources: City Of College Station and Brazos County Tax OfficeFiscal Year of the LevyCITY OF COLLEGE STATION, TEXASLAST TEN FISCAL YEARSPROPERTY TAX LEVIES AND COLLECTIONSCollected within theTotal Collections to Date130 1999200020012002200320042005200620072008Utilities 11,191$ 12,319$ 13,645$ 15,169$ 14,929$ 14,943$ 16,684$ 19,336$ 22,403$ 25,483$ Construction5,338 4,465 5,805 6,240 5,500 6,477 12,076 13,918 15,818 15,768 Manufacturing6,306 6,602 6,656 7,950 7,921 9,323 12,926 13,066 13,200 16,391 Wholesale Trade4,460 5,419 7,069 18,918 12,332 24,173 25,939 17,482 8,759 13,761 Retail Trade465,847 482,261 482,859 489,059 513,638 529,284 563,662 608,940 686,271 693,673 Information2,464 2,613 2,330 10,755 15,312 16,092 14,409 14,082 12,148 15,427 Finance and Insurance227 65 67 60 55 119 130 216 541 752 Real Estate and Rental/Leasing- - - 10,462 11,032 12,258 12,024 15,679 16,249 18,326 Professional, Scientific and Tech Services- - - 7,627 7,660 8,618 8,692 9,530 11,074 26,234 Administrative, Support, Waste Mgmt, Remediation- - - 12,866 14,703 14,655 15,133 16,462 15,054 18,362 Educational Services- - - 98 93 22,981 26,252 29,592 32,502 27,645 Health Care and Social Assistance- - - 986 1,721 1,951 2,547 2,873 4,051 2,888 Arts, Entertainment and Recreation3,034 3,071 3,588 5,382 5,480 6,173 6,781 6,949 7,399 9,168 Accommodation and Food Services105,493 113,010 116,051 129,054 137,440 147,277 158,267 169,900 185,723 205,967 Other Services80,432 88,939 90,845 37,731 36,951 34,401 32,029 17,064 14,350 14,778 Total684,792$ 718,764$ 728,915$ 752,357$ 784,767$ 848,725$ 907,551$ 955,089$ 1,045,542$ 1,104,623$ City direct sales tax rate1.50%1.50%1.50%1.50%1.50%1.50%1.50%1.50%1.50% 1.50%Source: Texas State Comptroller of Public AccountsNotes: Taxable sales information is not available on a fiscal-year basis. The state converted from reporting SICS classification of industries to NAICS classification of industries effective with the reporting year 2002.Data reported for the years 1999 through 2001 is classified under the old SICS codes and every effort was made to compare like industries. The categories listed with no sales for 1999 through 2001 are includedin Other Services for those years. This report includes data only from holders of sales tax permits. If fewer than four outlets reported in a quarter, the data is omitted as required by state disclosure laws.CITY OF COLLEGE STATION, TEXASTAXABLE SALES BY CATEGORYLAST TEN CALENDAR YEARS(in thousands of dollars)131 City Brazos State of Fiscal Year Direct Rate County Texas2000 1.50% 0.50% 6.25%2001 1.50% 0.50% 6.25%2002 1.50% 0.50% 6.25%2003 1.50% 0.50% 6.25%2004 1.50% 0.50% 6.25%2005 1.50% 0.50% 6.25%2006 1.50% 0.50% 6.25%2007 1.50% 0.50% 6.25%2008 1.50% 0.50% 6.25%2009 1.50% 0.50% 6.25%Source: Texas State Comptroller of Public AccountsCITY OF COLLEGE STATION, TEXASDIRECT AND OVERLAPPING SALES TAX RATESLAST TEN FISCAL YEARS132 Number PercentageTaxPercentageNumber PercentageTaxPercentageof Outlets of TotalLiabilityof Totalof Outlets of TotalLiabilityof TotalRetail trade965 60.97%8,570$ 83.47%1,214 56.26%13,495$ 81.44%Services418 26.41%801 7.80%414 19.18%1,253 7.56%Wholesale trade35 2.21%468 4.56%57 2.64%206 1.25%Utilities, transportation, communications17 1.07%205 1.99%21 0.97%384 2.32%Manufacturing36 2.27%95 0.92%64 2.97%246 1.48%Construction50 3.16%80 0.78%102 4.73%237 1.43%Agriculture, forestry, and fishing41 2.59%46 0.44%32 1.48%139 0.84%Finance, insurance, real estate11 0.69%3 0.03%50 2.32%286 1.73%All other outlets10 0.63%1 0.01%204 9.45%324 1.95%Total1,583 100.00%10,269$ 100.00%2,158 100.00%16,570$ 100.00%Source: Texas State Comptroller of Public AccountsNotes: Due to confidentiality issues, the names of the ten largest revenue payers are not available. The categories presented are intended to provide alternative information regarding the sources of the City's revenue.Tax liability information is not available on a fiscal-year basis.The category labeled "All other outlets" is higher than normal in 2007 due to the State Comptroller's conversion from SIC classification codes to NAICS classification codes. The State reports in SIC classifications andnew outlets added since the conversion began are labeled within the SIC classification of "other". Calendar Year 1999Calendar Year 2008CITY OF COLLEGE STATION, TEXASSALES TAX REVENUE PAYERS BY INDUSTRYCALENDAR YEARS 1999 AND 2008(dollars are in thousands)133 Public PropertyGeneral Finance Utility Utility Revenue Utility Revenue Total PercentageFiscal Obligation Certificates of Contractual Revenue Capital Certificates Certificates General Primary of Personal PerYear Bonds Obligation Obligations Bonds Leases of Obligation of Obligation Obligation Bonds Government Income Capita2000 $ 38,700,000 17,955,000$ $- $ 42,870,000 $- $- $- $- $ 99,525,000 1,466 200139,375,000 20,595,000 - 63,185,000 - - - - 123,155,000 11.96% 1,710 200241,665,000 33,280,000 - 78,235,000 - - - - 153,180,000 2,022 200343,170,000 32,525,000 - 79,680,000 - - - - 155,375,000 1,984 200447,085,000 34,705,000 - 75,655,000 - - - - 157,445,000 1,963 200549,800,000 30,195,000 - 79,215,000 - - 8,910,000 - 168,120,000 2,052 200653,835,000 34,905,000 - 91,460,000 - - 8,580,000 - 188,780,000 15.39% 2,244 200755,720,000 33,500,000 - 105,215,000 - - 8,240,000 - 202,675,000 15.49% 2,330 200860,695,000 39,965,000 - 99,560,000 - - 23,820,000 - 224,040,000 12.90% 2,465 200959,145,000 38,575,000 - 93,755,000 - 4,530,000 47,755,000 - 243,760,000 14.34% 2,608 Sources: City of College Station (outstanding debt, per capita) and the U.S. Census Bureau, American Community Survey (personal income)Notes: Details regarding the city's outstanding debt can be found in the notes to the financial statements.Personal income information for the City of College Station is only available for calendar years 2000, 2005 - 2009.Governmental ActivitiesCITY OF COLLEGE STATION, TEXASRATIOS OF OUTSTANDING DEBT BY TYPELAST TEN FISCAL YEARSBusiness-Type Activities134 GeneralPercentage ofObligation Less Debt ServiceNetActual TaxableFiscal Year BondsCash Funds Bonded Debt Value of Property Per Capita200038,700,000$ 4,202,042$ 34,497,958$ 1.66%508200139,375,000 1,722,254 37,652,746 1.66%523200241,665,000 1,287,038 40,377,962 1.65%533200343,170,000 659,180 42,510,820 1.59%543200447,085,000 585,336 46,499,664 1.56%580200549,800,000 912,353 48,887,647 1.50%597200653,835,000 1,645,563 52,189,437 1.45%620200755,720,000 2,060,709 53,659,291 1.34%617200860,695,000 2,573,421 58,121,579 1.30%644200959,145,000 3,125,126 56,019,874 1.13%599Source: City of College StationNotes: Details regarding the City's outstanding debt can be found in the notes to the financial statements.CITY OF COLLEGE STATION, TEXASRATIOS OF NET GENERAL BONDED DEBT OUTSTANDINGLAST TEN FISCAL YEARS135 Estimated Estimated Share Debt Percentage of Direct and Governmental Unit Outstanding Applicablea Overlapping Debt Debt repaid with property taxes College Station I.S.D.103,185,000$ 87.57% 90,359,105$ Brazos County 95,590,000 49.39% 47,211,901$ Bryan I.S.D.168,618,718 1.45% 2,444,971$ Other debt College Station I.S.D.543,410 87.57%475,864$ Brazos County - 49.39%-$ Bryan I.S.D. Capital Lease - 1.45%-$ Subtotal, overlapping debt 140,491,841$ City direct debt 97,720,000$ Total direct and overlapping debt 238,211,841$ Sources: Debt outstanding data provided by each governmental unit. Assessed value data used to estimate applicable percentages provided by the Brazos County Appraisal District. Notes: Overlapping governments are those that coincide, at least in part, with the geographical boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of College Station. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident and therefore responsible for repaying the debt of each overlapping government. a For debt repaid with property taxes, the percentage of overlapping debt is estimated using taxable assessed property values. Applicable percentages were estimated by determining the portion of another governmental unit's taxable assessed value that is within the City's boundaries and dividing it by each unit's total assessed value. CITY OF COLLEGE STATION, TEXAS DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT AS OF SEPTEMBER 30, 2009 136 The City has no general obligation legal debt limit other than a ceiling on the ad valorem tax rate as specified by the State of Texas. The prescribed maximum is $2.50 per $100 at 100% valuation. CITY OF COLLEGE STATION, TEXAS LEGAL DEBT MARGIN INFORMATION SEPTEMBER 30, 2009 137 UtilityLess:NetAverage MaximumServiceOperatingAvailable Debt Service Annual Debt Service AnnualFiscal Year ChargesExpensesRevenueTotal Coverage Total Coverage200052,932,584$ 41,925,412$ 11,007,172$ 3,472,421$ 3.175,687,161$ 1.94200159,143,896 45,465,778 13,678,118 4,688,518 2.926,395,244 2.14200262,141,066 46,274,555 15,866,511 5,825,064 2.728,048,707 1.97200364,046,246 47,785,550 16,260,696 5,773,582 2.818,084,285 2.01200464,785,122 44,719,241 20,065,881 5,651,966 3.557,998,465 2.51200570,636,853 51,125,745 19,511,108 5,522,447 3.538,364,747 2.33200680,787,029 54,432,847 26,354,182 6,423,582 4.109,163,574 2.88200787,911,120 63,514,543 24,396,577 7,389,770 3.3010,408,958 2.34 200899,610,432 73,195,783 26,414,649 8,620,759 3.0612,245,949 2.16 2009108,367,552 80,848,570 27,518,982 9,834,136 2.8013,870,272 1.98 Source: City of College StationNotes: Details regarding the City's outstanding debt can be found in the notes to the financial statements. Operating expenses do not include interest, depreciation, or amortization expense.The coverage ratios presented in this schedule are formulas required by bond resolutions. The bond resolutions require that net revenues equal at least 1.4 times the average annual debt service on all revenue bonds and other indebtedness payable from those revenues. The bond resolutionsalso require that net revenues equal at least 1.25 times the maximum annual debt service on all revenue bonds and other indebtedness payablefrom those revenues.Utility Revenue BondsPLEDGED-REVENUE COVERAGECITY OF COLLEGE STATION, TEXASLAST TEN FISCAL YEARS138 Personal Income Calendar (thousands Per Capita Unemployment Year Population of dollars)Personal Income Rate 1999 65,797 -$ -$ 1.8 2000 67,890 1,029,891 15,170 1.6 2001 72,020 - - 1.7 2002 75,752 - - 2.0 2003 78,309 - - 2.4 2004 80,214 - - 2.0 2005 81,930 1,226,974 14,976 3.7 2006 84,116 1,308,384 15,555 3.9 2007 86,982 1,736,221 19,961 3.8 2008 90,897 1,699,361 18,695 4.1 Sources: City of College Station Planning Division (population) U. S. Census Bureau, American Community Survey (personal income) Texas Workforce Commission (unemployment rate) Notes: In 2005, the Bureau of Labor Statistics introduced a new methodology for calculating unemployment rates. Along with the new calculation method, Robertson and Grimes county were added to the Bryan/College Station MSA. The net result is an increase in the area's unemployment rate. Personal income information for the City of College Station is only available for calendar years 2000, 2005-2008. CITY OF COLLEGE STATION, TEXAS DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN CALENDAR YEARS 139 2009 2000 Employer Employer Brazos County Brazos County Bryan ISD Bryan ISD City of Bryan City of Bryan City of College Station City of College Station College Station ISD College Station ISD Reynolds & Reynolds (1)Reliant Building Products Inc Sanderson Farms Inc Sanderson Farms Inc St Joseph Hospital St Joseph Hospital Texas A&M University Texas A&M University Wal-Mart Associates Inc Wal-Mart Associates Inc Source: Texas Workforce Commission, Labor Market/Career Information Department, Research Valley Partnership (1) Name change from Universial Computer Systems Notes: Data includes principal employers in Brazos County. Employers are listed in alphabetical order and do not reflect any ranking. The TWC ranking and number of employees data is confidential. PRINCIPAL AREA EMPLOYERS CURRENT YEAR AND NINE YEARS AGO CITY OF COLLEGE STATION, TEXAS 140 20002001 2002 2003 2004 2005 2006 2007 2008 2009Function/ProgramGeneral Government33.2 37.2 39.736.8 38.5 41.9 37.8 58.5 71.0 79.5Police132.3 139.4 140.3 143.4 146.0 144.4 155.1 163.5 168.5 176.0Fire91.3 98.1 103.9 105.9 108.5 111.4 110.6 119.0 125.0 121.0Public Works88.3 95.0 104.4 104.5 106.8 112.2 112.6 114.5 106.5 113.0Parks and Recreation106.8 111.3 115.4 120.1 116.2 120.0 119.8 123.5 131.0 133.0Planning and Development Services29.2 27.8 29.028.3 28.5 25.8 27.1 24.5 34.0 37.0Information Services41.5 39.2 39.140.0 40.3 37.5 36.6 28.5 33.0 32.0Fiscal Services53.2 54.3 53.161.1 59.8 64.2 70.1 71.0 72.5 70.5Electric48.8 57.1 57.556.9 53.4 56.6 56.0 56.5 58.0 65.0Water / Sewer Services65.4 64.6 66.266.0 64.0 69.1 71.8 71.0 67.5 76.5BVSWMA29.3 27.8 28.828.3 27.3 24.4 24.0 22.0 25.5 25.0Captial Projectn/an/an/an/an/an/an/an/a 10.0 10.0Total719.3 751.8 777.4 791.3 789.3 807.5 821.5 852.5 902.5 938.5Source: City of College StationNotes: Full-time-equivalent employees include full time, part time, and seasonal/temporary employees on staff as of September 30.Capital Projects added in FY 2008.Full-Time-Equivalent Employees as of Sept 30CITY OF COLLEGE STATION, TEXASFULL-TIME-EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAMLAST TEN FISCAL YEARS141 2000200120022003200420052006200720082009Function/ProgramGeneral Government Open records requests250 250 147 62 103 72 199 199 155164 Economic development prospects29 17 15 29 17 20 31 19 1823 Code enforcement cases processed3,503 4,209 4,525 6,280 9,341 2,848 5,984 4,838 5,1486,248 Non-profit agencies/contracts monitored8 8 12 11 10 9 13 7 109 Applicants receiving homebuyers assistance22 12 25 14 16 2 9 6 34Police DUI/DWI arrests522 351 311 341 418 387 414 493 458430 Citations processed40,712 44,305 36,945 43,407 42,957 39,416 34,134 38,046 10,38417,275 Uniform patrol calls handled50,459 50,034 56,388 61,821 60,405 57,605 60,159 58,303 57,66148,297 Average response time on high priority calls6:10 mins 5:53 mins 6:01 mins 6:28 mins 5:58 mins 6:09 mins 6:15 mins 6:17 mins 6.06 mins 6:18 mins Criminal investigation new cases assigned2,041 1,810 1,970 2,292 2,259 2,300 2,368 2,256 2,6352,590Note: In FY08 an e-citation program was implemented thus reducing the number of paper citations processed.Fire Fire incidents (fire, rescue, and haz mat)1,607 1,603 1,653 1,455 1,554 1,792 1,743 1,832 1,9922,008 Business safety inspections777 1,128 900 1,014 1,410 1,138 828 1,018 947760 EMS incidents2,495 2,704 2,554 2,754 2,800 3,241 3,048 3,773 4,718 5,367 EMS unit responses4,556 4,428 4,568 4,687 4,900 4,930 5,276 5,476 5,3695,051 Notes: FY99 fire incidents include fire, rescue, hazardous material, and EMS incidents (EMS operations were assigned a separate division in FY00).Public Works Street overlay lane miles21 12 1 20 18 19 19 19 159 Potholes repaired * * * * * 24,696 24,778 21,506 20,54618,000 Curb miles swept*****6,338 7,235 6,040 6,9555,620 Sign, marking, signal work orders3,008 2,562 2,709 3,472 3,270 2,898 2,557 2,617 2,8802,310Parks and Recreation Pavilion rentals355 340 353 342 314 221 399 338 395858 Adult participants in City leagues12,574 9,480 10,642 8,529 8,307 10,774 822 611 786786 Youth participants in City leagues2,060 1,887 2,684 1,977 2,690 2,520 2,842 2,946 4,1834,249 Special event participants159,457 22,718 123,743 188,980 188,429 201,256 197,805 185,002 170,193184,575 Instructional participants2,912 3,148 3,546 3,447 3,581 3,579 3,075 3,432 3,5383,077 Pool customers114,319 119,329 130,113 142,154 145,879 132,549 146,805 128,206 142,605138,785 Conference center customers87,372 88,239 74,320 70,728 81,289 85,720 70,494 66,950 79,360 90,089 Lincoln center participants49,071 67,665 68,919 72,794 81,629 82,624 98,869 100,952 93,50182,862 Teen center participants17,219 11,178 12,465 13,446 14,582 17,500 9,958 15,798 15,25917,212 Notes: FY01 special event participants do not include Christmas in the Park counts. Adult participants in City leagues was changed in FY06 to adult teams participating in City leagues. FY05 pavilion rentals had the following changes: Thomas Park pavilion rentals were removed (no longer charging a fee) and W.A. Tarrow basketball pavilion was added. In FY06 Crompton Park pavilion was added to rentals. FY09 Pavillion rentals now includes athletic field rentals. CITY OF COLLEGE STATION, TEXASOPERATING INDICATORS BY FUNCTION/PROGRAMLAST TEN FISCAL YEARSFISCAL YEAR142 2000200120022003200420052006200720082009Function/ProgramPlanning and Development Services Permits processed**6,728 6,604 6,685 6,500 6,575 7,583 6,6475,819 Building inspections performed10,045 11,046 14,671 13,364 13,435 13,297 13,069 13,398 13,81412,938 Parking citations issued*12,324 18,500 18,034 16,587 11,900 8,452 7,238 9,4609,686 Community enhancement cases9,224 12,077 12,550 11,637 15,086 7,016 7,384 8,631 11,88511,622 Note: FY09 Code Enforcement moved from Fire to Planning and Development ServicesElectric Number of connections26,169 27,113 33,386 35,421 35,307 36,284 37,590 38,519 37,77737,818 Residential job orders1,740 1,825 1,942 2,505 2,134 1,904 1,422 1,714 2,3421,242 Customer service job orders2,022 2,079 2,144 2,078 2,496 1,561 1,678 1,717 1,9281,774 Average monthly consumption (KWH)51,604,230 51,409,703 52,466,218 54,820,470 55,673,526 60,413,524 61,910,063 60,766,805 64,724,128 64,065,679 Avg number of outages per customer1.64 1.22 1.00 1.33 0.72 0.92 0.31 0.12 0.270.72Water Number of connections21,017 15,524 23,210 29,358 31,038 32,266 33,491 34,763 37,07537,344 New services completed*1,289 1,440 1,560 1,217 773 931 1,027 1,2351,230 Average monthly consumption (MGW)292,000 295,875 262,541 253,259 236,355 283,429 317,438 293,246 324,012 345,170 Water meters tested*893 950 1,025 768 732 1,254 1,174 7321,600 Avg number of outages per customer**0.190 0.003 0.160 0.016 0.039 0.013 0.0070.03 Sewer Number of connections**28,399 27,977 28,594 29,694 31,051 32,034 34,74334,743 Average daily sewage treatment5,881 6,158 6,669 6,807 6,808 6,220 5,911 6,502 6,6266,625 (thousands of gallons) New services completed*1,139 1,400 1,540 890 571 646 521 7811,140 Avg number of stoppages per customer**0.015 0.0001 0.003 0.003 0.003 0.003 0.002 0.003 Sanitation Number of users (units)24,360 28,894 23,947 28,215 28,594 28,399 27,181 28,112 29,53330,750 Residential tons collected14,999 15,614 17,710 18,057 20,353 23,535 24,964 27,556 22,19121,402 Residential tons recycled1,129 978 941 826 1,082 923 983 1,060 1,1991,064 Commercial tons collected30,951 31,376 32,364 33,402 35,355 35,114 35,122 38,402 38,70936,245 Parking garage Active contract customers*****449 432 472 464333 Hourly cash customers**65,612 106,935 97,904 127,608 108,893 109,028 107,584 104,342 Note: Parking garage opened to customers in February 2002.Utility Customer Service Payments processed369,001 379,439 388,579 404,742 408,348 401,891 413,088 423,299 443,766 461,557 Incoming calls79,741 79,747 79,514 82,018 82,536 82,234 85,728 85,842 97,12196,876 Meters read482,920 501,175 525,412 552,949 577,773 598,660 618,676 640,554 670,913 694,270 Source: City of College Station various departments* Data not measured for fiscal year indicated.FISCAL YEARCITY OF COLLEGE STATION, TEXASOPERATING INDICATORS BY FUNCTION/PROGRAM - ContinuedLAST TEN FISCAL YEARS143 2000200120022003200420052006200720082009Function/ProgramPolice Patrol units 25 25 25 25 25 26 26 29 29 29 Jail capacity17 17 17 17 17 17 17 17 17 17 Note: The patrol units figure includes 1 K-9 unit.Fire stations4 4 4 4 4 4 4 4 44 Note: The Fire Department operates an additional fire station located at the airport.Public Works Streets (linear miles)711 711 711 733 353 385 395 429 438428 Sidewalks (miles)91 89 89 89 89 97 100 100 100 119 Traffic signals53 55 57 60 62 62 62 65 66 66 Storm sewers (miles)******72 72 72 80 Notes: Street measurement changed from lane miles to linear miles in FY04. Storm sewer mileage includes both underground pipes and valley gutters.Parks and Recreation Acreage1,127 1,146 1,134 1,214 1,217 1,248 1,274 1,289 1,306 1,306 Playunits35 35 35 35 35 35 46 48 47 54 Softball/baseball fields 16 19 19 19 19 25 32 32 35 35 Soccer fields 13 13 19 19 19 26 31 31 2929 Jogging/walking trails19 20 20 22 22 26 27 28 2933 Community centers3 3 3 3 3 3 3 3 33 Pools3 3 3 3 3 3 3 3 33 Pavilions (rentable)5 5 5 5 5 6 6 7 76 Notes: Some parks have multiple playunits. Softball/baseball fields include practice fields.Electric Maximum capacity (megawatts)250 255 255 255 255 280 260 355 355355 Number of substations4 4 4 4 4 4 5 5 5 5 Distribution lines (miles)290 333 400 414 414 450 394 411 411 432 Water Water mains (miles)262 280 294 311 317 341 365 367 381 385 Fire hydrants****2,070 2,165 2,232 2,380 2,453 2,494 Number of wells5 5 6 6 6 6 8 8 8 8 Wells storage capacity 19,500 20,000 19,000 26,000 26,000 28,000 23,000 23,000 23,000 26,000 (thousands of gallons per day)Sewer Sanitary sewer lines (miles)232 243 252 262 264 271 279 285 301 305 Treatment capacity 9,500 9,500 11,500 11,500 11,500 11,500 11,500 11,500 11,500 11,500 (thousands of gallons per day)Sanitation Collection trucks21 21 22 23 24 24 24 25 2525 Residential collection containers***14,413 15,207 15,958 16,647 18,135 19,54920,275 Commercial collection containers1,205 1,230 1,383 1,407 1,511 1,545 1,569 1,594 1,6191,644 Fleet number of vehicles***585 600 613 627 651 643647 Source: City of College Station* Data not measured for fiscal year indicated.FISCAL YEARCITY OF COLLEGE STATION, TEXASCAPITAL ASSET STATISTICS BY FUNCTION/PROGRAMLAST TEN FISCAL YEARS144 City of College Station 1101 Texas Avenue College Station, Texas 77840 979-764-3555 www.cstx.gov