HomeMy WebLinkAboutFY 2002-2003 -- Comprehensive Annual Financial ReportCity of College Station, Texas
Comprehensive Annual Financial Report
For the Fiscal Year Ended September 30, 2003
Mission Statement
On behalf of the citizens of College Station, home of Texas
A&M University, we will continue to promote and advance
the community's quality of life.
www.cstx.gov
College Station. Embracing the Past, Exploring the Future!
CITY OF COLLEGE STATION, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2003
PREPARED BY THE
CITY OF COLLEGE STATION FISCAL SERVICES DEPARTMENT
CHARLES CRYAN, DIRECTOR OF FISCAL SERVICES
KATHLEEN HUBBARD, ASSISTANT DIRECTOR OF FISCAL SERVICES/ACCOUNTING MANAGER
PHILLIP GUILLEN, INVESTMENT OFFICER
CITY OF COLLEGE STATION, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2003
Table of Contents
Page
i
INTRODUCTORY SECTION
Letter of Transmittal ................................................................................................................................iv
GFOA Certificate of Achievement for Excellence in Financial Reporting............................................... x
Organizational Chart...............................................................................................................................xi
Principal City Officials ............................................................................................................................xii
FINANCIAL SECTION
Independent Auditors' Report .................................................................................................................1
Management’s Discussion and Analysis (Unaudited).............................................................................3
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Assets..........................................................................................................21
Statement of Activities.............................................................................................................22
Fund Financial Statements:
Balance Sheet – Governmental Funds ...................................................................................24
Reconciliation of Governmental Funds Balance Sheet
to the Statement of Net Assets................................................................................................25
Statement of Revenues, Expenditures and Changes
in Fund Balances – Governmental Funds...............................................................................26
Reconciliation of the Statement of Revenues, Expenditures and Changes
in Fund Balances of Governmental Funds to the Statement of Activities...............................27
Statement of Net Assets – Proprietary Funds.........................................................................28
Statement of Revenues, Expenses and Changes
in Fund Net Assets – Proprietary Funds .................................................................................30
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
General Fund Schedule of Revenues, Expenditures and Changes
in Fund Balance – Budget and Actual (Budgetary Basis)..............................................................70
CITY OF COLLEGE STATION, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2003
Table of Contents
Page
ii
Adjustments to General Fund Revenues and Expenditures To
Reconcile From Budget Basis to GAAP Basis...............................................................................71
Supplementary Information:
Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet – Nonmajor Governmental Funds................................................74
Combining Statement of Revenues, Expenditures and Changes
in Fund Balances – Nonmajor Governmental Funds..............................................................78
Combining Statement of Net Assets – Nonmajor Enterprise Funds.......................................84
Combining Statement of Revenue, Expenses and Changes
in Fund Net Assets – Nonmajor Enterprise Funds..................................................................85
Combining Statement of Cash Flows – Nonmajor Enterprise Funds .....................................86
Schedules of Revenues, Expenditures and Changes in Fund Balance – Budget
and Actual (Budgetary Basis):
Debt Service......................................................................................................................88
Adjustments to Debt Service Fund Revenues To
Reconcile from Budget Basis to GAAP Basis...................................................................89
Special Revenue Funds:
Community Development ..........................................................................................90
Convention Center......................................................................................................91
Hotel/Motel Tax ..........................................................................................................92
Melrose Apartment Tax Increment Financing District................................................93
Parks Escrow..............................................................................................................94
Wolf Pen Creek Tax Increment Financing District .....................................................95
Adjustments to Special Revenue Fund Revenues and
Expenditures to Reconcile from Budget Basis to GAAP Basis.........................................96
Internal Service Funds:
Combining Statement of Net Assets ..........................................................................98
Combining Statement of Revenues, Expenses and Changes
in Fund Net Assets...................................................................................................100
CITY OF COLLEGE STATION, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2003
Table of Contents
Page
iii
Combining Statement of Cash Flows.......................................................................102
Capital Assets Used in the Operation of Governmental Funds:
Schedule by Source .................................................................................................107
Schedule by Function and Activity ...........................................................................108
Schedule of Changes by Function and Activity........................................................110
STATISTICAL SECTION
Government-wide Expenses by Function...........................................................................................114
Government-wide Revenues...............................................................................................................115
General Governmental Revenues and Other Financing Sources......................................................116
General Governmental Tax Revenues By Source..............................................................................117
General Governmental Expenditures and Other Uses by Function ...................................................118
Property Tax Levies and Collections ..................................................................................................119
Assessed Value of Taxable Properties...............................................................................................120
Property Tax Rates, Ratios and Levies - All Direct and Overlapping Governments ..........................121
Paving Assessment Collections..........................................................................................................122
Computation of Legal Debt Margin .....................................................................................................123
Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt Per Capita................124
Schedule of Direct and Estimated Overlapping Debt .........................................................................125
Ratio of Annual Debt Service Expenditures for General Obligation Debt
to Total General Governmental Expenditures and Other Uses..........................................................126
Utility Funds - Schedule of Revenue Bond Coverage ........................................................................127
Construction Permits...........................................................................................................................128
Principal Taxpayers.............................................................................................................................129
Principal Utility Customers..................................................................................................................130
Summary of Insurance Coverage .......................................................................................................131
Miscellaneous Statistical and Demographic Data ...............................................................................132
iv
The City of
College Station, Texas
Embracing the Past, Exploring the Future.
P.O. Box 9960 • 1101 Texas Avenue • College Station, TX 77842 • (979) 764-3500
www.cstx.gov
March 10, 2004
Honorable Mayor, Members of the City Council
Citizens of the City of 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,
2003.
This report is published to provide to the City Council, City staff, our citizens, our bondholders and other
interested parties detailed information concerning the financial condition 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.
The Local Government Code, Section 103.001 (a) states: "A municipality shall have its records and
accounts audited annually and shall have an annual financial statement prepared based on the audit."
Likewise the Fiscal and Budgetary Policy Statements adopted annually by the City Council as a part of
the City's Approved Budget includes a requirement that the City shall annually have an audit performed
by an outside, independent auditor. The City has complied with this requirement, and the independent
auditors' report has been included in this report.
THE REPORT
This report is comprised of three sections: Introductory, Financial and Statistical. The Introductory
Section includes this transmittal letter, a listing of the principal City officials, and an organizational chart of
the City. The Financial Section contains the Independent Auditors' Report on the basic financial
statements, Management's Discussion and Analysis ("MD&A"), the basic financial statements with related
notes, and combining and individual fund statements and schedules. The MD&A is a narrative
introduction, overview, and analysis to accompany the basic financial statements. This letter of
transmittal is designed to complement the MD&A and should be read in conjunction therewith. The City
of College Station's MD&A may be found immediately following the Independent Auditors' Report. The
Statistical Section provides financial and demographic information, usually presented on a multi-year
basis, that is relevant to a financial statement reader.
The Financial section described above is prepared in accordance with generally accepted accounting
principles for governments as prescribed by the Governmental Accounting Standards Board ("GASB")
and other professional associations, as applicable.
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 the Gulf of Mexico, approximately 90 miles northwest of Houston,
approxim
v
approximately 165 miles south of Dallas and approximately 100 miles east of Austin, in 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 76,811 as of January 2004. 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 municipality and utilizes a Council-Manager form of
government organized under the Constitution and laws of the State of Texas. The City Council is
composed of a mayor and six council members elected at large. The City Council appoints the City
Manager, City Attorney, City Secretary and Municipal Court Judge. Almost all other City staff work under
the direction of the City Manager.
The Reporting Entity and Services Provided
This report includes all government activities, organizations and functions for which the City is financially
accountable as defined by the GASB. Based on these criteria, no other governmental organizations are
included in the report. For additional information on the reporting entity, refer to Note I-A in the basic
financial statements.
The City provides a full range of municipal services as prescribed by statute or charter. These services
include police, fire and emergency medical services, parks and recreational facilities, library services,
street maintenance and construction, public improvements, general administrative services and electrical,
water, sewer, and sanitation systems. Internal services of the City accounted for on a cost
reimbursement basis are print/mail, risk management, employee health and disability, equipment
replacement, fleet management, and communications.
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 the cost of a control
should not exceed the benefits likely to be derived, and 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 annual budget serves as the foundation for the City's financial planning and control. The City Charter
provides that the City Manager will submit a proposed budget to the City Council between 30 and 90 days
prior to the end of the fiscal year. The City's budget is prepared by function, fund and department. The
City Council is required to hold a public hearing on the proposed budget and to adopt a budget no later
than the 27th day of the last month of the fiscal year. The City's fiscal year begins on October 1 and ends
on September 30. Controls of budgetary spending are at the department level within the City's General
Fund and at the individual fund appropriation in all other funds. The City Council must authorize transfers
between General Fund departments and all increases in total spending in any fund.
vi
The City's departments have direct access to review budgets as often as necessary. Monthly closing
reports are prepared and reviewed by management showing revenues, expenditures, and balance
sheets. Summarized financial reports and budget reports are provided to the City Council on a quarterly
basis.
FACTORS AFFECTING FINANCIAL CONDITION
Economic Conditions
College Station's economic outlook is positive. College Station did not experience the full effect of the
national and state economic slowdown over the past several years. The area is somewhat immune due
to a concentration of stable and even-growing employment sectors such as government, higher education
and health care.
College Station continues to enjoy one of the lowest unemployment rates in the state. While the nation's
unemployment rate neared 6.5 percent, the unemployment rate in Brazos County never exceeded 2.4
percent. Slow but steady job growth also occurred adding approximately 0.8 percent to non-farm
payrolls.
Many parts of the state and nation experienced reductions in various types of tax revenue. Sales taxes
were down in the State of Texas the last two years in a row, the first time since the sales tax was
instituted in Texas. Sales tax collections in College Station continued to grow through the last two years
of economic turmoil. College Station's sales taxes were up in fiscal year 2003 by 2.8 percent over fiscal
year 2002 to $13,780,639.
College Station continues to see significant growth in housing and commercial development. There were
658 new housing starts during 2003, somewhat fewer than in 2002 but well ahead of the average number
of new housing starts over the last ten years. Total ad valorem assessed valuation increased by
approximately $225 million or approximately 9.2 percent for fiscal year 2003 over fiscal year 2002.
Commercial development continued to be strong with both new and redevelopment. The City opened a
new Home Depot, and Gattitown moved into vacant commercial space. The University Drive corridor had
a significant amount of new businesses and increased traffic.
One major asset of the City of College is that it is the home of Texas A & M University ("TAMU"). TAMU
is located on approximately 5,200 acre campus within the City. TAMU has a significant economic impact
on the City, contributing an estimated $784 million annually to the local economy. TAMU has consistently
ranked among the top 50 universities in the United States. Each year, TAMU's 2,500 faculty conduct an
estimated $400 million worth of sponsored research projects, assisted by more than 5,000 paid graduate
students. The $4.2 billion endowment ranked TAMU eleventh in the nation for fiscal year 2000. Student
enrollment at TAMU was 44,813 as of September 2003. TAMU employs more than 20,000 full-time and
part-time people.
Major Initiatives
Much of the planned hiking and biking trails were constructed during 2003. A significant portion of the
Wolf Pen Creek Trails was completed adding just over a mile of beautiful new trails for use by citizens
and visitors. During fiscal year 2003 the City completed the first phase of Veterans Park providing a
major new sports venue to the area with soccer fields and softball diamonds. Other parks continue to
have upgrades and replacements to their infrastructure. For example, parking and trails were constructed
at the Lick Creek Park. Other park enhancements included benches, sidewalks and trails.
Several new traffic signals were installed during the year, to provide greater safety and better traffic flow.
New street extensions were completed with a short piece of Longmire south of Rock Prairie Road to
Graham Road and Dartmouth from Southwest Parkway to Krenek Tap Road. Widening projects began
vii
on Greens Prairie Road East of Highway 6 to Pebble Creek Parkway and George Bush East from Texas
Avenue to Dexter. Widening projects completed were Phase II of Graham Road and Tarrow Street
South. A rehab project was completed in Northgate on First and Maple Streets. New traffic signals were
installed at the Gateway on University Drive and at Manuel on Texas Avenue. A number of sidewalk
projects were completed by year end along the TAMU campus, University Drive and Anderson Street.
Technology is an ongoing area of change for the City. During fiscal 2003 a significant upgrade to the
City's public safety computer systems was purchased and installed. Public safety is continuing to provide
upgrades as other systems are identified and tested. In addition to the public safety computer upgrades,
the City purchased a new human resource module. The new module will allow staff to keep more
information on the computer reducing the continuing growing need for additional physical storage space.
Capital Planning
The citizens of the City approved general obligation bond proposals totaling approximately $38.4 million
in November 2003. It is anticipated that the various street, traffic safety, public buildings, parks projects
and fire station projects funded by these bonds will be built over the next five years. The City has gone to
the voters three times in the last nine years with successful general obligation bond proposals. Among
the more ambitious projects planned is a City Centre that will eventually group most City departments in a
campus-like setting. The site is between the Police Station and Central Park abutting Texas Avenue on
the West, Earl Rudder Freeway on the East and Krenek Tap Road on the North. It is projected that the
City will be able to make the improvements without increasing the ad valorem tax rate for the capital
portion of these projects.
Planning in the various utilities provides for an anticipated investment of $101.9 million over the next five
years. The funds will be used to provide electric line extensions, transmission enhancements,
substations, new customer connections, and replacements of existing facilities. The water utility will
replace lines in older neighborhoods, add new transmission and distribution lines, provide for a looped
system, add new wells, and continue a project to add transmission capacity from the well field to the City.
Wastewater projects include sewer outfall lines, line extensions for annexed areas and new services, and
treatment plant improvements. Relatively small rate increases are anticipated for the water and
wastewater utilities over the next five years to keep up with the additional capital requirements.
Cash Management
The City awards its depository contract through official bidding procedures for a two-year period with the
provision for up to three one-year extensions. The City is planning to go out for a new contract during
2004. The current depository contract with First American Bank SSB expires October 1, 2004.
Temporarily idle cash for all funds is invested by City officials in securities as allowed by Texas Statutes
and the City's investment policy. The average balance of the City's investment portfolio for fiscal year
2003 was approximately $134,020,342. The overall portfolio produced total earnings of $3,550,673 which
represents a decrease of $1,889,319 from fiscal year 2002, due to lower interest rates resulting in part
from the economic slowdown and the Federal Open Market Committee's attempt to stimulate the
economy.
The City's bank depository agreement requires that all demand deposits and time deposits are secured
by pledged collateral with a market value equal to no less than 102 percent of the deposits, less $100,000
which is insured by the Federal Deposit Insurance Corporation. Evidence of the pledged collateral is
maintained by the Fiscal Services Department and a third party financial institution. Collateral is reviewed
monthly to assure the market value of the securities pledged equals or exceeds the related bank
balances. Assets pledged to the City by its depository are held by the Federal Home Loan Bank, Dallas,
Texas, pursuant to a separate Custody Account Agreement.
Investment securities purchased for the City, except investments in pooled funds and mutual funds, are
on a delivery versus payment basis. That is, funds are not wired or paid until verification has been made
viii
that the correct security has been received by the custodian. Securities are held in a custody account in
the City's name. The original copy of all safekeeping statements is delivered to the City. J.P. Morgan
Chase has been designated as the City's safekeeping and custodian bank.
During fiscal year 2003, the City Council reviewed the existing Investment Policy as required by state law
and no changes were made to the policy. The investment policy provides for an Investment Committee
comprised of the Chief Financial Officer, the Assistant Director of Fiscal Services and the Investment
Officer. For additional information on the City's investments refer to Note IV-B to the financial statements.
Risk Management
The City's risk management program is administered by the Risk Management Division. The division is
responsible for monitoring all claims filed against the City as well as handling the filing of claims as
necessary on behalf of the City. The Risk Management Division is responsible for administering the
City's Workers Compensation and Property Casualty Self Insurance Funds. The City's Risk Manager is
responsible for ensuring that the City's coverage is adequate to protect the City in the event of potential
losses and for ensuring continuous coverage. The City is developing an aggressive safety training
program.
Employee Retirement System
The City is a member of the Texas Municipal Retirement System ("TMRS") which covers all full-time and
certain part-time employees. The plan provides for no benefits beyond the contributions of the employee,
employer and earnings on the individual employee account. Employee contributions are six (6) percent of
gross earnings. The City's contribution rate for 2003 was 9.62 percent. The employee contribution rate
has been increased for 2004 to seven (7) percent. The contribution rate for the City is set by TMRS
annually for a calendar year. Any unfunded liability (actuarially determined cost to the City not already
paid) is paid over a 25-year period and is included as a part of the rate the City pays.
OTHER INFORMAITON
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 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, 2003, are
fairly presented in conformity with U.S. generally accepted accounting principals. The independent
auditors' report is presented as the first component of the financial section of this report.
Certificate of Achievement
The Government Finance Officers Association of the United States and Canada ("GFOA") awarded a
Certificate of Achievement for Excellence in Financial Reporting to the City of College Station for its
Comprehensive Annual Financial Report ("CAFR") for the Fiscal Year ended September 30, 2002. The
x
CITY OF COLLEGE STATION
CITIZENS OF
COLLEGE STATION
MAYOR AND
COUNCIL
CITY
ATTORNEY
CITY
SECRETARY
MUNICIPAL
JUDGES
APPOINTED
BOARDS
CITY MANAGER'S OFFICE
City Manager
Assistant City Manager
COMMUNITY
PROGRAMS OFFICE OF
BUDGET
AND
STRATEGIC PLANNING
PUBLIC
COMMUNICATIONS
AND
MARKETING
EMERGENCY
MANAGEMENT
FIRE POLICE
ECONOMIC
DEVELOPMENT/
COMMUNITY DEV.
FISCAL
SERVICES
PARKS &
RECREATION
DEVELOPMENT
SERVICES
PUBLIC
WORKS
PUBLIC
UTILITIES
OFFICE OF
TECHNOLOGY &
INFORMATION
SERVICES
HUMAN
RESOURCES
ADMINISTRATION
SUPPRESSION
PREVENTION
EMS
ADMINISTRATION
UNIFORM
PATROL
CRIMINAL
INVESTIGATIONS
SPECIAL
SERVICES
QUARTERMASTER
COMMUNICATIONS /
JAIL
PROFESSIONAL
STANDARDS
INFORMATION
SERVICES
BUSINESS PARK
EDC LIAISON
REDEVELOPMENT
TOURISM
DEVELOPMENT
RETAIL
DEVELOPMENT
SPECIAL PROJECTS/
CIP
COMMUNITY
DEVELOPMENT
ACCOUNTING
PURCHASING
RISK
MANAGEMENT
MUNICIPAL
COURT
ADMINISTRATION
RECREATION
SPECIAL
FACILITIES
PARKS
OPERATIONS
FORESTRY
CONVENTION &
VISITORS BUREAU
ARTS COUNCIL
BUILDING
INSPECTION
PLANNING
STREETS
DRAINAGE
FLEET
TRAFFIC
SOLID WASTE
COLLECTION
ENGINEERING
FACILITIES
MAINTENANCE
ELECTRIC
WATER
WASTEWATER
MANAGEMENT
INFORMATION
SERVICES
GEOGRAPHIC
INFORMATION
AND MAP SERVICES
COMMUNICATION
SERVICES
PRINT/MAIL
UTILITY
CUSTOMER
SERVICES
LIBRARYxi
xii
CITY OF COLLEGE STATION, TEXAS
PRINCIPAL CITY OFFICIALS
September 30, 2003
Elected Officials:
Mayor.............................................................................................................................. Ron Silvia
Council Member, Mayor Pro Tem....................................................................................Anne Hazen
Council Member, Place 1............................................................................................James Massey
Council Member, Place 2..................................................................................................John Happ
Council Member, Place 3...........................................................................................Robert Wareing
Council Member, Place 4................................................................................................Scott Mears
Council Member, Place 5.......................................................................................... Dennis Maloney
City Administration:
City Manager .......................................................................................................Thomas E. Brymer
Assistant City Manager.................................................................................................Glenn Brown
City Attorney ......................................................................................................Marshall Cargill, Jr.
City Secretary ............................................................................................................ Connie Hooks
Director of Public Utilities ..............................................................................................John Woody
Director of the Office of Technology and Information Services.......................................Olivia Burnside
Director of Fiscal Services ........................................................................................... Charles Cryan
Director of Economic Development Services .......................................................................Kim Foutz
Director of Development Services .................................................................................Kelly Templin
Fire Chief................................................................................................................. David Giordano
Director of Parks and Recreation...............................................................................Stephen Beachy
Director of Human Resources .....................................................................................Julie O’Connell
Police Chief............................................................................................................... Edgar Feldman
Director of Public Works..................................................................................................Mark Smith
Director of Budget and Strategic Planning .................................................................. Jeffrey Kersten
City Communications Director ..................................................................................Rebecca Nugent
xiii
Management's Discussion and Analysis
For the Fiscal Year Ended September 30, 2003
(Unaudited)
City of College Station, Texas
3
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, 2003. 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
$262,991,837 (net assets). Of this amount,
$59,843,384 (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
$15,638,297 during the fiscal year.
• At the close of the current fiscal year, the
City's governmental funds reported combined
ending fund balances of $63,222,164, a
decrease of $2,566,709 when compared to
the prior year. This decrease was due to a
decrease in two areas: operating transfers in
and proceeds from the issuance of long-term
debt.
• Approximately 30.7% of the combined
governmental funds ending fund balance, or
$19,391,739, is available for spending at the
City's discretion (unreserved-undesignated
fund balance).
• During fiscal year 2003, the City's total debt
increased by approximately $2,195,000. Key
factors in this increase were the issuance of
$4,790,000 in General Obligation Bonds,
$1,780,000 in Certificates of Obligation, and
$16,010,000 in Revenue Bonds for the
Electric, Water, and Sewer Funds.
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.
Management's Discussion and Analysis
For the Fiscal Year Ended September 30, 2003
(Unaudited)
City of College Station, Texas
4
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:
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 i-xii
+
Management's Discussion and Analysis
Pages 3-20
Government-Wide Financial Statements
Basic Pages 21-23
Financial Governmental Fund Financial Statements
Statements Pages 24-27
and Proprietary Fund Financial Statements Financial
RSI Pages 28-33 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 73-111
+
Trend Data and Nonfinancial Data
Pages 114-136
Statistical
Section
Management's Discussion and Analysis
For the Fiscal Year Ended September 30, 2003
(Unaudited)
City of College Station, Texas
5
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 and sick leave.
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, police, financial services, information systems, planning and development,
fire, municipal services, parks and recreation, and citizen and neighborhood resources. The
business-type activities of the City include electric, water, sewer, and solid waste operations. The
government-wide financial statements can be found on pages 21-23.
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.
Management's Discussion and Analysis
For the Fiscal Year Ended September 30, 2003
(Unaudited)
City of College Station, Texas
6
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 Capital Projects Fund 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 24-
27.
The City adopts an annual appropriated budget for its General Fund, Debt Service Fund, and
Streets Capital Projects Funds. A budgetary comparison statement has been provided for the
General Fund, Debt Service Fund and Special Revenue 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, sewer, sanitation, Cedar Creek
Condominiums and parking activities of the City. The Electric, Water, and Sewer funds
are considered to be major funds of the City while the remaining funds (Sanitation,
Northgate Parking Garage, and Cedar Creek Condominiums) 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, print-mail, and utility billing services. It also uses
internal service funds to account for equipment replacement; employee benefits; and
unemployment, workers' compensation, and property casualty insurance. All of these
services, with the exception of utility billing, predominantly benefit governmental rather
than business-type functions and have been included within governmental activities in the
government-wide financial statements. The Utility Billing 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 28-33.
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.
Management's Discussion and Analysis
For the Fiscal Year Ended September 30, 2003
(Unaudited)
City of College Station, Texas
7
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 and
enterprise funds and the internal service funds are presented on pages 73-103 immediately
following the required supplementary information on pensions.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
This is the first year that the City has presented its financial statements under the new reporting
model required by the Governmental Accounting Standards Board Statement No. 34 ("GASB
34"), Basic Financial Statements--and Management's Discussion and Analysis ("MD&A")--for
State and Local Governments. Because this reporting model significantly changes both the
recording and presentation of financial data, the City has not restated prior fiscal years for the
purposes of providing comparative information for the MD&A. In future years, when prior-year
information is available, a comparative analysis of government-wide data will be included in this
report.
Analysis of Net Assets
As noted earlier, net assets may serve as a useful indicator of a government's financial position.
For the City, assets exceeded liabilities by $262,991,837 at the close of the current fiscal year.
The largest portion of the City's net assets (71.7 percent) reflects its investment of $188,649,733
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.
Management's Discussion and Analysis
For the Fiscal Year Ended September 30, 2003
(Unaudited)
City of College Station, Texas
8
Net Assets
September 30, 2003
Governmental Business-Type
Activities Activities Total
Assets
Current and Other Assets $78,351,388 $64,640,588 $142,991,976
Capital Assets 124,024,176 169,975,339 293,999,515
Total Assets 202,375,564 234,615,927 436,991,491
Liabilities
Long-Term Liabilities
Outstanding 77,339,680 79,547,501 156,887,181
Other Liabilities 6,135,086 10,977,387 17,112,473
Total Liabilities 83,474,766 90,524,888 173,999,654
Net Assets
Invested in Capital Assets,
Net of Related Debt 78,791,820 109,857,913 188,649,733
Restricted 12,031,989 2,466,731 14,498,720
Unrestricted 28,076,989 31,766,395 59,843,384
Total Net Assets $118,900,798 $144,091,039 $262,991,837
An additional portion of the City's net assets, $14,498,720 (5.5 percent) represents resources that
are subject to external restrictions on how they may be used. The remaining balance of
unrestricted net assets, $59,843,384 (22.8 percent) may be used to meet the government's
ongoing obligations to citizens and creditors.
At the end of the current fiscal year, the City was able to report positive balances in all three
categories of net assets for the government as a whole, as well as for the business-type activities.
Analysis of Changes in Net Assets
The City's net assets increased by $15,638,297 as a result of fiscal year 2003 operations.
Governmental activities increased net assets by $8,091,291, thereby accounting for 51.7 percent
of the total growth in net assets. Business-type activities accounted for the remaining 48.3
percent of the growth and totaled $7,547,006.
The following table provides a summary of the City's operations for the year ended September
30, 2003 and highlights key elements of the increase in the City's net assets:
Management's Discussion and Analysis
For the Fiscal Year Ended September 30, 2003
(Unaudited)
City of College Station, Texas
9
Changes in Net Assets
For the Fiscal Year Ended September 30, 2003
Governmental Business-Type
Activities Activities Total
Revenues
Program Revenues:
Charges for Services $8,437,681 $71,148,910 $79,586,591
Operating Grants and Contributions 1,891,808 50,700 1,942,508
Capital Grants and Contributions 6,399,178 3,887,629 10,286,807
General Revenues:
Property Taxes 13,441,000 - 13,441,000
Sales Tax 14,027,489 - 14,027,489
Other Taxes 3,808,962 - 3,808,962
Interest and Investment Income 1,739,929 1,126,900 2,866,829
Other 19,563 - 19,563
Total Revenues 49,765,610 76,214,139 125,979,749
Expenses
General Government 7,857,618 - 7,857,618
Fiscal Services 1,834,859 - 1,834,859
Police 9,374,251 - 9,374,251
Fire 7,102,089 - 7,102,089
Development Services 1,651,761 - 1,651,761
Public Works 5,242,162 - 5,242,162
Parks and Recreation 6,361,728 - 6,361,728
Office of Technology and
Information Services 2,919,155 - 2,919,155
Interest on Long Term Debt 3,643,268 - 3,643,268
Unallocated Depreciation 2,543,780 - 2,543,780
Electric Utility - 43,299,695 43,299,695
Water Utility - 6,283,025 6,283,025
Sewer Utility - 7,347,315 7,347,315
Sanitation Services - 4,419,352 4,419,352
Parking Operations - 461,394 461,394
Cedar Creek Condominiums - - -
Total Expenses 48,530,671 61,810,781 110,341,452
Increase in Assets Before
Transfers 1,234,939 14,403,358 15,638,297
Transfers 6,856,352 (6,856,352) -
Increase in Net Assets 8,091,291 7,547,006 15,638,297
Net Assets at Beginning of Year 110,809,507 136,544,033 247,353,540
Net Assets at End of Year $118,900,798 $144,091,039 $262,991,837
Management's Discussion and Analysis
For the Fiscal Year Ended September 30, 2003
(Unaudited)
City of College Station, Texas
10
The chart below illustrates the City's governmental revenues by source. For governmental
activities overall without regard to program, sales tax is the largest single source of funds (24.8
percent) followed by property tax (23.7 percent), charges for services (14.9 percent), grants and
contributions (14.6 percent), and transfers (12.1 percent). All other governmental revenues
account for 9.9 percent of all governmental revenues.
City of College Station, Texas
Governmental Revenues By Source
$56,621,962
14.9%
23.7%
24.8%
6.7%
3.1%12.1%0.1%
14.6%
Charges for Services
Grants and Contributions
Property Tax
Sales Tax
Other Taxes
Investment Income
Other
Transfers
Governmental expenses by function are depicted in the following chart. Police operations is the
largest function in expense (19.3 percent), followed by general government (16.2 percent), fire
operations (14.6 percent), parks and recreation (13.1 percent), and public works (10.8 percent).
Expenses for all other governmental functions amounted to 26 percent, the largest of which was
interest on long-term debt (7.5 percent).
City of College Station, Texas
Governmental Expenses
$48,530,671
5.2%3.4%3.8%
7.5%
10.8%
16.2%13.1%
14.6%
19.3%
6.1%
Unallocated Depreciation
Development Services
Fiscal Services
OTIS
Interest on LT Debt
Public Works
General Government
Parks and Recreation
Fire
Police
Management's Discussion and Analysis
For the Fiscal Year Ended September 30, 2003
(Unaudited)
City of College Station, Texas
11
Another useful chart depicts governmental activity program revenues relative to program
expenses. That data is presented below:
Governmental Activity
Comparison of Program Revenues to Program Expenses
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000General GovernmentFiscal ServicesPoliceFireDevelopment ServicesPublic WorksParks and RecreationOffice of Technology and Information ServicesInterest on Long-Term DebtUnallocated DepreciationProgram Revenues
Program Expenses
As with the statement of net assets and the statement of activities, because the GASB 34
reporting model significantly changes the form of financial data, the City has not restated prior
fiscal year revenue and expense information. Year to year comparisons will be included in future
reports.
Management's Discussion and Analysis
For the Fiscal Year Ended September 30, 2003
(Unaudited)
City of College Station, Texas
12
Revenues for the City's business-type activities are presented in the following chart. Charges for
services provided the largest share of revenues (93.4 percent) for the City's business-type
activities. It was followed by grants and contributions (5.2 percent) and investment income (1.4
percent).
Business-Type Revenues
$76,214,139
93.4%
5.2%1.4%
Charges for Services
Grants and Contributions
Investment Income
The chart below shows the relative expenses for the City's business-type activities, the largest of
which was electric system operations (63.1 percent) followed by sewer system operations (10.7
percent), transfers (10 percent), water system operations (9.1 percent), sanitation operations (6.4
percent), and parking operations (0.7 percent).
Business-Type Expenses
$68,667,133
63.1%9.1%
10.7%
6.4%
0.7%10.0%
Electric
Water
Sewer
Sanitation
Parking Operations
Transfers
Management's Discussion and Analysis
For the Fiscal Year Ended September 30, 2003
(Unaudited)
City of College Station, Texas
13
FINANCIAL ANALYSIS OF THE CITY'S FUNDS
As noted above, 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, Debt
Service Funds, and Streets Capital Projects Fund. Other governmental funds of the City are
reported as non-major funds.
At of the end of the current fiscal year, the City's governmental funds reported combined ending
fund balances of $63,222,164 Approximately 30.67 percent ($19,391,739) of this total amount
constitutes unreserved fund balance and is available for spending at the City's discretion. A
portion of the unreserved fund balance ($982,237) is the investment income earned on debt
issued for a convention center project and has been designated by management for funding of
that project. 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:
(1) To pay debt service ($1,636,307),
(2) To liquidate contracts and purchase orders of the prior period ($10,521,932),
(3) To capital improvements ($29,384,115),
(4) To permanent cemetery endowments ($883,476),
(5) To police criminal investigation activity ($15,402),
(6) To inventory ($54,825),
(7) To Court Technology ($195,731),
(8) To Court Security ($138,053), and
(9) To Court Efficiency ($18,347).
Revenues for governmental functions overall totaled approximately $43,149,966 in the fiscal year
ended September 30, 2003, an increase of 2.8 percent or $1,188,532 from the fiscal year ended
September 30, 2002. Expenditures for governmental functions totaling $58,966,401 decreased
by approximately 0.7 percent ($435,080) from the fiscal year ended September 30, 2002. In
fiscal year 2003, expenditures for governmental functions exceeded revenues by $15,816,435.
That amount was 9.3 percent less than the previous year's amount of $17,440,047.
The General Fund is the chief operating fund of the City of College Station. At the end of the
current fiscal year, the unreserved, undesignated fund balance was $9,522,041 while the total
fund balance reached $11,250,335. The City's fiscal and budgetary policies require that the
Management's Discussion and Analysis
For the Fiscal Year Ended September 30, 2003
(Unaudited)
City of College Station, Texas
14
General Fund's undesignated fund balance be at least equal to 15 percent of budgeted
expenditures, a percentage equal to 55 days of expenditures. The unreserved, undesignated
fund balance is approximately 26 percent of fiscal year 2003 budgeted expenditures and exceeds
the minimum requirement set by policy
As a measure of the fund's liquidity, it is useful to compare both unreserved and total fund
balance to total fund actual expenditures. Unreserved fund balance represents 28.3 percent of
total general fund expenditures while total fund balance represents 33.4 percent of the same
amount.
The fund balance of the General Fund increased by $1,139,110 (11.3 percent) during the current
fiscal year. Key factors in this growth were as follows:
• A 5.5 percent increase in taxes, most of which resulted from an increase in property tax
revenues due to growth in the tax base,
• A 16.3 percent increase in licenses and permits which was a direct result of the increased
residential construction experienced in fiscal year 2003,
• A 19.3 percent increase in fines due to more aggressive collection efforts and increases
in the amount of traffic fines, and
• The issuance of $1,000,000 in certificates of obligation for the purchase of equipment.
The Debt Service Fund ended the fiscal year with a fund balance of $1,636,307, all of which is
reserved for the payment of debt service. The net decrease in fund balance during the current
fiscal year was $718,906. A $585,749 increase in debt service revenues and other financing
sources was more than offset by principal retirement 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 $143,178,115. Approximately 22.1 percent ($31,585,262) of this total amount
constitutes unrestricted net assets. The remainder of net assets for the proprietary funds,
$111,592,853, is reported as follows:
(1) Invested in capital assets, net of related debt ($109,102,463),
(2) Restricted for debt service ($2,466,731), and
(3) Restricted for capital projects ($23,659).
Operating revenues for proprietary activities totaled $69,257,364 for the fiscal year, an increase
of 3.4 percent or $2,357,696 from the previous fiscal year. Operating expenses increased
$1,433,122 or 2.6 percent for the same period causing operating income to increase $924,574 or
8.6 percent. The proprietary funds reported net nonoperating revenues (expenses) of ($826,277)
at the end of fiscal year 2003 as compared to net nonoperating revenues (expenses) of
$2,016,622 in the previous fiscal year. As a result of the increase in operating income and the
decline in net nonoperating revenues (expenses), the increase in net assets ($7,863,964) was
$1,873,753 more than the change in net assets for the previous year.
Management's Discussion and Analysis
For the Fiscal Year Ended September 30, 2003
(Unaudited)
City of College Station, Texas
15
Electric Fund
At the end of the fiscal year, the unrestricted net assets for the Electric Fund totaled $4,724,633.
The electric utility ended the fiscal year with working capital of $4,463,537, a decrease of
$9,802,343 or 68.7 percent from fiscal year 2002. The majority of this decrease was due to an $8.7
million settlement of a lawsuit involving a dispute over wheeling charges. In addition, the City
decided to use current resources to provide for capital requirements for the electric system and
certain other capital acquisitions, a strategy that will help maintain a low debt to equity ratio,
maintain relatively low annual debt service payments, and allow the City to be more flexible as it
faces the challenges of deregulation within the electric utility industry.
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, 2003, Electric Fund working capital equaled approximately 10.5 percent. This deficiency is
primarily due to the lawsuit settlement mentioned previously.
Electric Fund operating revenues increased by 2.9 percent ($1,313,760) during fiscal year 2003
while operating expenses increased 5.6 percent ($2,232,312) during the same period resulting in a
17.8 percent decrease ($918,552) in operating income. The large increase in operating expenses
was due to the settlement of the lawsuit. As a result of this large expense, net assets for the
Electric Fund decreased by $550,685 during the fiscal year.
Water Fund
Unrestricted net assets for the Water Fund at September 30, 2003 were $11,430,295. Working
capital in the Water Fund at the end of fiscal year 2003 was $11,590,001, an increase of
approximately 4.2 percent from fiscal year 2002. Water Fund working capital was 237.6 percent
of total operating expense and exceeds the minimum 15 percent requirement under the Council's
adopted policy.
Water Fund operating revenues decreased by 1.0 percent ($88,608) during fiscal year 2003 as a
result of slightly lower water consumption due to cooler temperatures and increased rainfall. During
the same period, operating expenses declined 16.3 percent ($952,895). As a result, operating
income rose 30.3 percent to $3,720,160 in fiscal year 2003. The Water Fund's change in net
assets was $4,275,577, an 80.4 percent increase over the previous years. This increase was
largely due to the inclusion of $2,045,171 in capital contributions.
Sewer Fund
The Sewer Fund's unrestricted net assets at the end of fiscal year 2003 were $5,135,602. The
Sewer Fund ended the fiscal year with a working capital balance of $4,531,078, which was 20.6
percent above fiscal year 2002. Sewer Fund working capital was 80.9 percent of total operating
expenses and is well above the minimum requirement for the fund.
Operating revenues in the Sewer Fund were $8,883,482, a $680,028 (8.3 percent) increase over
the previous fiscal year. Operating expenses increased from $5,268,030 to $5,599,591 or 6.3
percent while operating income rose by 11.9 percent from $2,935,424 to $3,283,891.
Management's Discussion and Analysis
For the Fiscal Year Ended September 30, 2003
(Unaudited)
City of College Station, Texas
16
BUDGETARY HIGHLIGHTS
The final amended budget for fiscal year 2003 totaled $159,137,707 for all funds. Of this amount
$132,737,952 (83 percent) was budgeted for operations and maintenance expenditures, and
$26,399,755 (17 percent) was budgeted for capital improvement projects.
In the General Fund the final revised budgeted change in fund balance was $1,067,349 lower than
the original budgeted change and the significant items that comprise this difference can be briefly
summarized as follows:
• $520,219 - Encumbrances rolled over from previous fiscal year
• $200,000 - Additional funding for the Arts Council of the Brazos Valley
• $128,760 - Matching funds for FEMA Fire Equipment Grant
• $115,472 - Gainsharing distribution to employees
• $100,000 - Cable franchise renewal
In the General Fund the actual change in fund balance was $3,603,046 higher than the final revised
budgeted change and the significant items that comprise this difference can be briefly summarized
as follows:
• $754,905 - Additional Fines, Forfeits & Penalties revenue generated from more efficient
municipal court operations and an increase in the number of tickets written.
• $725,840 - Lower expenditures in the economic development fund related to economic
development incentives that were budgeted for and did not occur in FY 03.
• $377,776 - Additional Charges for Services revenue generated by an increase in the
collection of emergency medical fees, an increase in Parks and Recreation fees, and
various other fee and usage increases.
• $298,125 - Lower Other Non-departmental expenditures related to savings identified as
part of the FY 03 budget process.
• $210,024 - Lower Capital Outlay expenditures primarily related to the delay of a fire
vehicle purchase that will occur in FY 04.
• $175,255 - Lower Purchased Professional Services expenditures related to two franchise
agreements that did not require the use of all the funds budgeted.
• $152,360 - Additional Licenses and Permits revenue generated from an increase in
building activity and an increase in the minimum building permit fee.
Strategic planning is a driving force in the preparation of the City's budget. Strategic planning is
centered around the following four vision statements under which are listed some of the key items in
the fiscal year 2003 budget:
Vision Statement #1--Core Services
We will provide high quality customer service focused basic City services at a reasonable
cost. These core services include police, fire, and emergency management services; traffic and
drainage services; the City's administrative services; electric, water, wastewater and sanitation
operations; and capital projects for each of these areas. Key items included in the 2003 fiscal year
budget include:
• Funding of the second of three phases for the operation and maintenance of Fire Station #5
which is scheduled to begin operation in 2004,
Management's Discussion and Analysis
For the Fiscal Year Ended September 30, 2003
(Unaudited)
City of College Station, Texas
17
• An additional Code Enforcement Officer to be funded through Community Development Block
Grant funds,
• Funding for the televising of City Council meetings,
• Funding to enhance e-government by providing more City services on line and by revamping
the City's web page,
• A six percent increase in wastewater rates to help fund the additional debt issued for the
expansion of the Lick Creek Wastewater Treatment Plant,
• An increase of $1.00 per month in the residential sanitation rate in order to add another
residential route, and
• The elimination of seven positions in the General Fund. These positions were vacant on
October 1, 2002 and their elimination did not impact any existing employees.
Vision Statement #2--Parks and Leisure Services
We will provide a large range of recreational and cultural arts opportunities. The 2003 fiscal
year budget provided resources to continue funding the Parks and Recreation Department at
current service levels. Additional resources were included for the following:
• Funding necessary to operate and maintain the first phase of Veteran's Park which was
dedicated to all veterans of the Brazos Valley in November 2002. Phase I of the park included
six soccer fields, two softball fields, parking, a maintenance shop, landscaping, irrigation and an
entry road and
• Funding to implement the Parks Maintenance Standards adopted by the City Council.
Vision Statement #3--Planning and Development
We will provide a well-planned community. Activities related to this vision statement include
planning and development services. A key focus of the fiscal 2003 budget was funding to complete
revisions to the Unified Development Ordinance.
Vision Statement #4--Economic Development
We will provide a strong and diverse economic environment. This vision statement
encompasses the City's economic development initiatives. The fiscal 2003 budget included the
following:
• Resources to continue the development of a second business park as part of an ongoing effort
to strengthen and diversify the tax base,
• Funding for the development of the entire 30/60 corridor in College Station, an area bounded by
State Highway 60 on the north and State Highway 30 on the south and identified as an area
ripe for development, and
• Funding for the continued development of a hotel/conference center.
CAPITAL ASSETS
The City of College Station's investment in capital assets for its governmental and business-type
activities as of September 30, 2003 amounted to $293,999,515 (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.
Management's Discussion and Analysis
For the Fiscal Year Ended September 30, 2003
(Unaudited)
City of College Station, Texas
18
Capital Assets at Year End
Net of Accumulated Depreciation
Governmental Business-Type
Activities Activities Total
Land $19,714,327 $672,811 $20,387,138
Utility Systems - 132,632,271 132,632,271
Buildings and Building Improvements 17,995,750 5,442,667 23,438,417
Improvements Other than Buildings 7,794,091 - 7,794,091
Machinery and Equipment 9,303,164 106,846 9,410,010
Infrastructure 55,373,740 - 55,373,740
Construction in Progress 13,843,104 31,120,744 44,963,848
$124,024,176 $169,975,339 $293,999,515
Major capital projects completed by the City during the 2003 fiscal year include the following:
• A new $3.2 million Municipal Court Building. In addition to Court and Legal staff, the building
houses Fire Administration and Brazos Valley Solid Waste Management personnel,
• A $1.2 million rehab of Fire Station 2,
• A $3.2 million regional athletic park (Veteran's Park),
• The Second Street Promenade in the Northgate area ($675,000),
• A $1.4 million extension of George Bush Drive East,
• New electric services and system extensions totaling $1.4 million,
• Overhead and underground electric system improvements totaling $1.6 million
• Thoroughfare street lighting improvements totaling $440,566,
• A $3.1 million new elevated water storage tower, and
• A $285,910 upgrade to the Hensel Park sewer lift station.
Of significance is $10.2 million in developer capital contributions during fiscal year 2003. These
contributions accounted for approximately 48.8 percent of the $19.5 million increase in capital
assets.
Additional information on the City's capital assets can be found in Note IV-D to the financial
statements on pages 52 - 54.
DEBT ADMINISTRATION
At the end of the 2003 fiscal year, the City of College Station had total debt outstanding of
$155,375,000. Of this amount, $75,695,000 (48.7 percent) comprised debt backed by the full faith
and credit of the City . The remaining debt is revenue bonds secured by specified revenue sources.
Year-End Outstanding Debt Payable
Governmental Business-Type
Activities Activities Total
General Obligation Bonds $43,170,000 $ - $43,170,000
Revenue Bonds - 79,680,000 79,680,000
Certificates of Obligation 32,525,000 - 32,525,000
$75,695,000 $79,680,000 $155,375,000
Management's Discussion and Analysis
For the Fiscal Year Ended September 30, 2003
(Unaudited)
City of College Station, Texas
19
The City's total debt increased by $2,195,000 (1.4 percent) during the current fiscal year. The
change in total debt was a result of the following:
• Issuance of $4.79 million in general obligation bonds, $1.78 million in certificates of
obligation, and $16.01 million in utility revenue bonds; and
• Retirement of $3.285 million in general obligation bonds, $2.535 million in certificates of
obligation, and $14.565 million in utility revenue bonds.
Included in this debt activity was the issuance of $11.16 million in utility system revenue bonds to
refinance previously outstanding revenue bonds totaling $10.75 million. As a result of this
refunding, the City will reduce its total debt service payments over the next six (6) years by
approximately $885,000.
The City's General Obligation and Certificates of Obligation are rated AA- by Standard & Poors
("S&P") and Aa1 by Moody's Investors Service ("Moody's"). The underlying ratings for the City's
revenue bonds are A+ by S&P and A3 by Moody's. Because the City's last bond issue was
insured, those bonds were rated AAA with S&P and Aaa with Moody's.
Additional information on the City's long-term debt can be found in Note IV-G to the financial
statements on pages 55 - 59 of this report.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES
The City of College Station has continued to grow and has not experienced some of the more
severe economic downturns faced by other cities, both in the state and in the nation. Indicators of
that growth include the following:
• An estimated population increase of 41.5 percent for the period of 1990 through 2003,
• An approximate $142 million increase to the ad valorem tax base during fiscal year 2003 and a
41.7 percent increase in value of new development for the same period,
• A local economy that has maintained an unemployment rate of less than 4 percent since 1990,
• Sales tax revenue that grew 2.8 percent during the fiscal year, and
• A six (6) percent increase in electric customer connections during the current fiscal year.
Part of the reason the City has been insulated from some of the effects of the slower national and
state economy is due to the major influence of Texas A&M University on the local economy.
However, because of some slight budget reductions at Texas A&M, the City's proposed fiscal year
2004 budget was prepared conservatively with recommendations for maintaining current service
levels. As a result, the proposed ad valorem tax rate for the 2004 fiscal year remains at $0.4777
per $100 valuation ($0.1946 for operations and maintenance and $0.2831 for debt service). This
proposed tax rate will meet the debt service obligations of the City and provide operations and
maintenance funding in the General Fund.
Current and anticipated growth in the community has resulted in increased demands for services
and has put pressure on the City's utility systems. Consequently, the 2004 proposed budget
includes a four (4) percent revenue increase in the Sewer Fund. This rate increase is needed to
fund the expansion of the Lick Creek Wastewater Treatment Plant and other capital projects
needed to maintain, rehabilitate, and expand the sewer system infrastructure in order to keep up
with the growth. No electric, water, sanitation, or drainage rate increases are proposed in the 2004
fiscal year budget.
Management's Discussion and Analysis
For the Fiscal Year Ended September 30, 2003
(Unaudited)
City of College Station, Texas
20
The fiscal year 2004 proposed budget for capital improvements totals $34,919,321. The City
anticipates significant expenditures for infrastructure rehabilitation and improvements in the
Southside area, an older part of the City. These projects include rehabilitation of utilities, drainage
ways, and streets. Some of the more significant projects are as follows:
• Street rehabilitation in the Southside area ($1.2 million),
• Extension of Longmire Drive ($2.2 million),
• Widening of Greens Prairie Road ($3.7 million),
• Extension of Dartmouth Drive ($3.4 million),
• Expansion of the Lincoln Center ($623,000),
• Development of Woodway Park ($700,000),
• Construction of Fire Station #5 ($1.3 million), and
• Construction of the Spring Creek Business Park ($2.3 million)
It is anticipated that the City will issue $8.72 million in certificates of obligation during fiscal year
2004 to help fund electric and sewer capital projects. However, no debt issues are planned for
water capital improvements since these projects will be funded using current revenues. In addition,
the City plans to issue general obligation bonds for the following: $855,000 for drainage
improvements, $1.05 million for streets, $550,000 for traffic projects, $150,000 for parks projects,
and $4.355 million for public facilities. An additional $505,000 in certificates of obligation will be
issued for Phase II of the Business Park.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the City of College Station's
financial position for all who have an interest in the City's finances. Questions concerning any of
the information provided in this report or requests for additional financial information should be
addressed to:
City of College Station
Fiscal Services Department
ATTN: Director of Fiscal Services
P.O. Box 9960
College Station, Texas 77842-9960
or visit our website at http://www.cstx.gov.
CITY OF COLLEGE STATION, TEXAS
Statement of Net Assets
As of September 30, 2003
Governmental Business-type
Activities Activities
Total
Assets
Equity in Cash and Cash Equivalents 29,605,118$ 8,694,946$ 38,300,064$
Equity in Investments 45,195,119 13,273,083 58,468,202
Receivables, net 3,039,738 9,097,396 12,137,134
Internal Balances (373,704) 373,704 0
Inventories 171,431 1,344,451 1,515,882
Prepaid Costs 35,848 0 35,848
Restricted Assets
Equity in Cash and Cash Equivalents 268,288 9,253,299 9,521,587
Equity in Investments 409,550 14,125,424 14,534,974
Receivables, net 0 62,139 62,139
Equity in Joint Venture 0 7,606,185 7,606,185
Deferred Charges, net 0 809,961 809,961
Capital Assets:
Land and Construction in Progress 33,557,431 31,793,555 65,350,986
Other Capital Assets,
net of accumulated depreciation 90,466,745 138,181,784 228,648,529
Total Assets 202,375,564 234,615,927 436,991,491
Liabilities
Accounts Payable 2,893,220 8,499,332 11,392,552
Accrued Interest Payable 0 3,941 3,941
Retainage Payable 234,130 0 234,130
Refundable Deposits 25,814 0 25,814
Claims Payable 418,859 0 418,859
Accrued Liabilities 1,285,438 458,667 1,744,105
Customer Construction Advances 63,958 92,152 156,110
Other Deferred Revenues 714,813 822 715,635
Liabilities Payable from Restricted Assets
Accounts Payable 0 836 836
Accrued Interest Payable 469,476 642,102 1,111,578
Retainage Payable 0 157,460 157,460
Accrued Liabilities 29,378 15,836 45,214
Refundable Deposits 0 1,106,239 1,106,239
Non-current liabilities
Due within one year:
Compensated Absences 80,413 15,984 96,397
Bonds and Certificates of Obligation Payable 5,680,000 4,025,000 9,705,000
Due in more than one year:
Bonds and Certificates of Obligation Payable 70,015,000 75,655,000 145,670,000
Unamortized Premium on Bonds 0 (435,753) (435,753)
Compensated Absences 1,564,267 287,270 1,851,537
Total Liabilities 83,474,766 90,524,888 173,999,654
Net Assets
Invested in Capital Assets, net of related debt 78,791,820 109,857,913 188,649,733
Restricted for:
Debt Service 1,346,593 2,466,731 3,813,324
Other 10,685,396 0 10,685,396
Unrestricted 28,076,989 31,766,395 59,843,384
Total Net Assets 118,900,798$ 144,091,039$ 262,991,837$
The notes to the financial statements are an integral part of this statement.
21
CITY OF COLLEGE STATION
Statement of Activities
For the Year Ended September 30, 2003
Program Revenues
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions
Governmental activities:
General Government 7,857,618$ 516,258$ 1,462,949$ 0$
Fiscal Services 1,834,859 327,188 0 0
Police 9,374,251 3,215,162 149,829 0
Fire 7,102,089 637,443 279,030 0
Development Services 1,651,761 1,104,793 0 0
Public Works 5,242,162 1,237,447 0 6,399,178
Parks and Recreation 6,361,728 1,399,390 0 0
Office of Technology and Information Services 2,919,155 0 0 0
Interest on long-term debt 3,643,268 0 0 0
Unallocated Depreciation 2,543,780 0 0 0
Total governmental activities 48,530,671 8,437,681 1,891,808 6,399,178
Business-type activities:
Electric 43,299,695 46,592,459 0 425,613
Water 6,283,025 8,861,195 50,700 2,045,171
Sewer 7,347,315 9,159,142 0 1,416,845
Sanitation 4,419,352 5,986,207 0 0
Cedar Creek Condominiums 0 4,341 0 0
Northgate Parking 461,394 545,566 0 0
Total business-type activities 61,810,781 71,148,910 50,700 3,887,629
Total primary government 110,341,452$ 79,586,591$ 1,942,508$ 10,286,807$
General Revenue:
Property taxes
Sales taxes
Franchise taxes
Hotel/Motel taxes
Unrestricted investment earnings
Gain on sale of capital assets
Transfers
Total general revenues and transfers
Change in net assets
Net assets - beginning
Net assets - ending
The notes to the financial statements are an integral part of this statement.
22
Net Revenue (Expense) and
Changes in Net Assets
Governmental Business-type
Activities Activities Total
(5,878,411)$ 0$ (5,878,411)$
(1,507,671) 0 (1,507,671)
(6,009,260) 0 (6,009,260)
(6,185,616) 0 (6,185,616)
(546,968) 0 (546,968)
2,394,463 0 2,394,463
(4,962,338) 0 (4,962,338)
(2,919,155) 0 (2,919,155)
(3,643,268) 0 (3,643,268)
(2,543,780) 0 (2,543,780)
(31,802,004) 0 (31,802,004)
0 3,718,377 3,718,377
0 4,674,041 4,674,041
0 3,228,672 3,228,672
0 1,566,855 1,566,855
0 4,341 4,341
0 84,172 84,172
0 13,276,458 13,276,458
(31,802,004)$ 13,276,458$ (18,525,546)$
13,441,000$ 0$ 13,441,000$
14,027,489 0 14,027,489
1,688,947 0 1,688,947
2,120,015 0 2,120,015
1,739,929 1,126,900 2,866,829
19,563 0 19,563
6,856,352 (6,856,352) 0
39,893,295 (5,729,452) 34,163,843
8,091,291 7,547,006 15,638,297
110,809,507 136,544,033 247,353,540
118,900,798$ 144,091,039$ 262,991,837$
23
CITY OF COLLEGE STATION, TEXAS
Balance Sheet
Governmental Funds
As of September 30, 2003
Other Total
Streets Governmental Governmental
General Debt Service Projects Funds Funds
Assets and Other Debits
Assets
Equity in Cash and Cash Equivalents 4,771,083$ 659,180$ 8,520,371$ 11,943,224$ 25,893,858$
Equity in Investments 7,283,195 1,006,257 13,006,589 18,231,673 39,527,714
Receivables
Accrued Interest 37,049 4,140 63,595 88,905 193,689
Grants 87,528 0 0 323,399 410,927
Letter of Credit 25,000 0 0 0 25,000
Accounts 499,079 0 246,774 211,977 957,830
Special Assessments 21,796 0 0 0 21,796
Taxes 1,352,185 205,357 0 0 1,557,542
Notes and Loans 0 0 0 9,356 9,356
Other 12,513 0 0 0 12,513
Less Allowance for
Uncollectible Accounts (48,865) 0 (246,774) (18,973) (314,612)
Due from Other Funds 19,271 0 0 0 19,271
Inventories 54,825 0 0 2,373 57,198
Restricted Assets
Equity in Cash and Cash Equivalents 268,288 0 0 0 268,288
Equity in Investments 409,550 0 0 0 409,550
Total Assets 14,792,497$ 1,874,934$ 21,590,555$ 30,791,934$ 69,049,920$
Liabilities and Fund Balances
Liabilities
Accounts Payable 1,094,055$ 0$ 723,793$ 831,172$ 2,649,020$
Retainage Payable 4,511 0 95,753 133,866 234,130
Due to Other Funds 0 0 0 200,000 200,000
Refundable Deposits 5,403 0 0 20,411 25,814
Accrued Liabilities 1,218,955 33,270 0 (998) 1,251,227
Customer Construction Advances 32,963 0 30,995 0 63,958
Other Deferred Revenues 1,156,897 205,357 0 11,975 1,374,229
Liabilities Payable from Restricted Assets
Accrued Liabilities 29,378 0 0 0 29,378
Total Liabilities 3,542,162 238,627 850,541 1,196,426 5,827,756
Fund Balances
Reserved 1,728,294 1,636,307 20,740,014 18,743,573 42,848,188
Unreserved
Designated for subsequent
Years Expenditures 0 0 0 982,237 982,237
Undesignated 9,522,041 0 0 9,869,698 19,391,739
Total Fund Balances 11,250,335 1,636,307 20,740,014 29,595,508 63,222,164
Total Liabilities and Fund Balances 14,792,497$ 1,874,934$ 21,590,555$ 30,791,934$ 69,049,920$
The notes to the financial statements are an integral part of this statement.
24
CITY OF COLLEGE STATION, TEXAS
Reconciliation of Governmental Funds Balance Sheet
to the Statement of Net Assets
As of September 30, 2003
Amounts reported for governmental activities in the statement of net assets
are different because:
Total Fund Balance per balance sheet: 63,222,164$
Capital assets used in governmental activities are not financial
resources and, therefore, are not reported in the funds 115,593,538
Other long-term assets are not available to pay for current-period
expenditures and, therefore, are deferred in the funds. 659,416
Internal Service Funds are used by management to charge the costs
of certain activities, such as insurance, fleet maintenance,
equipment replacement and print/mail, to individual funds.
The assets and liabilities of certain internal service funds are
included in governmental activities in the statement of net assets. 17,194,410
Long-term liabilities, including bonds payable, are not due and payable in
the current period and therefore are not reported in the funds. (77,768,730)
Net Assets of governmental activities: 118,900,798$
The notes to the financial statements are an integral part of this statement.
25
CITY OF COLLEGE STATION, TEXAS
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Fiscal Year Ended September 30, 2003
General Debt Service Streets Projects
Other
Governmental
Funds
Total
Governmental
Funds
Revenues
Taxes 20,994,078$ 7,645,600$ 0$ 2,637,773$ 31,277,451$
Licenses and Permits 1,012,960 0 0 0 1,012,960
Intergovernmental 487,934 0 8,400 1,454,549 1,950,883
Charges for Services 2,403,316 0 0 206,740 2,610,056
Fines, Forfeits and Penalties 2,654,154 0 0 3,489 2,657,643
Special Assessments 0 0 0 1,035,023 1,035,023
Investment Income 281,092 90,104 483,575 688,255 1,543,026
Rents and Royalties 112,993 0 0 120,033 233,026
Loan Repayments 0 0 0 11,322 11,322
Contributions 20,987 0 106,871 348,055 475,913
Reimbursed Expenditures 7,258 0 0 0 7,258
Other 182,810 0 95,553 57,042 335,405
Total Revenues 28,157,582 7,735,704 694,399 6,562,281 43,149,966
Expenditures
Current
General Government 3,471,279 0 293,800 0 3,765,079
Fiscal Services 2,319,008 0 0 0 2,319,008
Police 9,143,331 0 0 0 9,143,331
Fire 6,989,125 0 0 0 6,989,125
Development Services 1,935,277 0 0 0 1,935,277
Public Works 5,292,243 0 0 0 5,292,243
Economic and Community Development 6,369 0 0 0 6,369
Parks and Recreation 6,279,342 0 0 0 6,279,342
Office of Technology and Information Services 2,320,950 0 0 0 2,320,950
Library 681,350 0 0 0 681,350
Reimbursed Administrative (6,013,085) 0 250,000 2,059,556 (3,703,529)
Contributions 445,251 0 0 1,128,400 1,573,651
Community Development Block Grant 0 0 0 222,169 222,169
Home Grant 0 0 0 408,779 408,779
Other 91,428 0 268,708 264,701 624,837
Capital Outlay 673,305 0 3,188,075 7,425,068 11,286,448
Debt Service
Principal Retirement 0 5,820,000 0 0 5,820,000
Interest Payments 0 3,647,529 0 0 3,647,529
Issuance Costs 41,098 392 42,087 34,758 118,335
Fiscal Charges 0 12,500 0 0 12,500
Intergovernmental 0 0 223,608 0 223,608
Total Expenditures 33,676,271 9,480,421 4,266,278 11,543,431 58,966,401
Deficiency of Revenues Under Expenditures (5,518,689) (1,744,717) (3,571,879) (4,981,150) (15,816,435)
Other Financing Sources (Uses)
Proceeds from Long-Term Debt 1,000,000 0 2,473,000 3,097,000 6,570,000
Sale of Capital Assets 19,563 67,311 (78,441) 11,130 19,563
Transfers In 6,741,826 958,500 98,790 111,574 7,910,690
Transfers Out (1,103,590) 0 0 (890,004) (1,993,594)
Total Other Financing Sources (Uses) 6,657,799 1,025,811 2,493,349 2,329,700 12,506,659
Net Change in Fund Balances 1,139,110 (718,906) (1,078,530) (2,651,450) (3,309,776)
Fund Balances, October 1 10,111,225 2,355,213 21,818,544 32,246,958 66,531,940
Fund Balances, September 30 11,250,335$ 1,636,307$ 20,740,014$ 29,595,508$ 63,222,164$
The notes to the financial statements are an integral part of this statement.
26
CITY OF COLLEGE STATION, TEXAS
Reconciliation of the Statement of Revenues, Expenditures,
and Changes in Fund Balances of Governmental Funds
to the Statement of Activities
For the Fiscal Year Ended September 30, 2003
Amounts reported for governmental activities in the statement of activities
are different because:
Net change in fund balance - total governmental funds (3,309,776)$
Governmental funds report capital outlays as expenditures. However,
in the statement of activities the cost of those assets is allocated
over their estimated useful lives and reported as depreciation
expense. This is the amount by which capital outlays exceeded
depreciation in the current period. 5,041,727
The effect of various miscellaneous transactions involving capital
assets is to increase net assets. 6,399,178
Revenues in the statement of activities that do not provide current
financial resources are not reported as revenues in the funds. 27,648
The issuance of long-term debt 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. This amount is the net effect of these
differences in the treatment of long-term debt. (750,000)
Some expenses reported in the statement of activities do not require
the use of current financial resources and, therefore, are not
reported as expenditures in governmental funds. (89,894)
Internal Service Funds are used by management to charge the costs
of certain activities, such as insurance, fleet maintenance,
equipment replacement and Print/Mail, to individual funds.
The net revenues of certain activities of internal service
funds is reported within governmental activities. 772,408
Change in Net Assets of governmental activities: 8,091,291$
The notes to the financial statements are an integral part of this statement.
27
City of College Station, Texas
Statement of Net Assets
Proprietary Funds
As of September 30, 2003
Governmental
Business-type Activities - Enterprise Funds Activities
Electric Water Sewer
Other
Enterprise
Funds
Total Enterprise
Funds 2003
Internal Service
Funds
Current Assets
Equity in Cash and Cash Equivalents 1,688,473$ 4,622,471$ 1,461,950$ 892,190$ 8,665,084$ 3,741,122$
Equity in Investments 2,577,503 7,056,334 2,231,709 1,361,952 13,227,498 5,712,990
Receivables, net 6,354,877 986,965 971,135 770,846 9,083,823 179,270
Inventories 1,002,027 288,362 19,777 34,285 1,344,451 114,233
Prepaid Costs 0 0 0 0 0 35,848
Total Current Assets 11,622,880 12,954,132 4,684,571 3,059,273 32,320,856 9,783,463
Restricted Assets
Equity in Cash and Cash Equivalents 3,651,400 2,972,399 2,629,500 0 9,253,299 0
Equity in Investments 5,573,966 4,537,452 4,014,006 0 14,125,424 0
Receivables, net 24,812 18,724 18,603 0 62,139 0
Total Restricted Assets 9,250,178 7,528,575 6,662,109 0 23,440,862 0
0
Advance to Other Funds 200,000 0 0 0 200,000 0
Equity in Joint Venture 0 0 0 7,606,185 7,606,185 0
Deferred Charges
Water Well 0 1,167,075 0 0 1,167,075 0
Bond Issuance Costs 278,669 247,020 357,245 0 882,934 0
Accumulated Amortization (61,455) (1,109,711) (68,882) 0 (1,240,048) 0
Total Deferred Charges 217,214 304,384 288,363 0 809,961 0
Capital Assets
Utility Plant 81,998,169 60,409,385 59,170,659 0 201,578,213 0
Buildings 0 0 0 5,723,063 5,723,063 746,575
Machinery and Equipment 0 0 0 1,411,242 1,411,242 20,604,879
Accumulated Depreciation (35,594,167) (18,596,627) (15,486,939) (1,584,792) (71,262,525) (12,189,025)
Construction in Progress 3,368,689 13,405,377 14,346,678 0 31,120,744 0
Land 0 0 0 672,811 672,811 0
Total Capital Assets,
net of accumulated depreciation 49,772,691 55,218,135 58,030,398 6,222,324 169,243,548 9,162,429
Total Assets 71,062,963 76,005,226 69,665,441 16,887,782 233,621,412 18,945,892
Liabilities
Current Liabilities
Accounts Payable 6,877,323 1,270,736 95,107 248,625 8,491,791 251,741
Accrued Interest Payable 0 0 0 3,941 3,941 0
Retainage Payable 0 0 0 0 0 0
Interfund Payable 0 0 0 0 0 19,271
Accrued Liabilities 256,816 37,755 46,256 85,205 426,032 66,846
Customer Construction Advances 24,382 55,640 12,130 0 92,152 0
Other Deferred Revenues 822 0 0 0 822 0
Claims Payable 0 0 0 0 0 418,859
Total Current Liabilities 7,159,343 1,364,131 153,493 337,771 9,014,738 756,717
Current Liabilities Payable from Restricted Assets
Accounts Payable 836 0 0 0 836 0
Accrued Interest Payable 136,590 215,687 289,825 0 642,102 0
Retainage Payable 0 118,865 38,595 0 157,460 0
Accrued Liabilities 13,174 0 2,662 0 15,836 0
Refundable Deposits 959,501 144,838 0 1,900 1,106,239 0
Revenue Bonds 1,053,250 1,157,068 1,814,682 0 4,025,000 0
Total Current Liabilities Payable from Restricted
Assets 2,163,351 1,636,458 2,145,764 1,900 5,947,473 0
28
City of College Station, Texas
Statement of Net Assets
Proprietary Funds
As of September 30, 2003
Governmental
Business-type Activities - Enterprise Funds Activities
Electric Water Sewer
Other
Enterprise
Funds
Total Enterprise
Funds 2003
Internal Service
Funds
Noncurrent Liabilities
Revenue Bonds 17,575,987 26,071,617 32,007,396 0 75,655,000 0
Unamortized Premium on Bonds (143,435) (42,653) (249,665) 0 (435,753) 0
Accrued Vacation 127,104 46,077 57,603 31,055 261,839 81,841
Total Noncurrent Liabilities 17,559,656 26,075,041 31,815,334 31,055 75,481,086 81,841
Total Liabilities 26,882,350 29,075,630 34,114,591 370,726 90,443,297 838,558
Net Assets
Invested in Capital Assets, net of related debt 38,920,619 35,087,170 28,896,009 6,222,324 109,126,122 9,162,429
Restricted for:
Debt Service 535,361 412,131 1,519,239 0 2,466,731 0
Unrestricted 4,724,633 11,430,295 5,135,602 10,294,732 31,585,262 8,944,905
Total Net Assets 44,180,613$ 46,929,596$ 35,550,850$ 16,517,056$ 143,178,115 18,107,334$
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds. 912,924
Net assets business-type activities 144,091,039$
The notes to the financial statements are an integral part of this statement.
29
CITY OF COLLEGE STATION, TEXAS
Statement of Revenues, Expenses and Changes in Fund Net Assets
Proprietary Funds
For the Fiscal Year Ended September 30, 2003
Governmental
Business-type Activities - Enterprise Funds Activities
Electric Water Sewer
Other Enterprise
Funds
Total Enterprise
Funds
Internal Service
Funds
Operating Revenues
Electric Sales 45,480,173$ 0$ 0$ 0$ 45,480,173$ 0$
Water Sales 0 8,029,071 0 0 8,029,071 0
Sewer Service 0 0 8,523,513 0 8,523,513 0
Garbage Collection Fees 0 0 0 4,659,525 4,659,525 0
Charges for Services 541,571 541,571 6,423,682
Other 1,085,424 568,096 359,969 10,022 2,023,511 5,389,123
Total Operating Revenues 46,565,597 8,597,167 8,883,482 5,211,118 69,257,364 11,812,805
Operating Expenses
Electric Operations 40,100,091 0 0 0 40,100,091 0
Salaries and Benefits 0 1,241,608 1,400,243 1,542,963 4,184,814 2,273,036
Supplies 0 73,666 265,261 206,639 545,566 794,619
Maintenance 0 63,267 153,525 488,982 705,774 163,289
Purchased Professional Services 0 139,723 156,739 328,157 624,619 63,753
Claims 0 0 0 0 0 100,318
Administration Fees 0 0 0 0 0 350,769
Premiums 0 0 0 0 0 977,586
Purchased Property Services 0 867,255 489,902 1,197,700 2,554,857 56,407
Other Purchased Services 0 145,206 261,269 431,938 838,413 3,926,591
Reimbursed Administrative 0 1,160,270 1,057,053 416,871 2,634,194 1,183,646
Depreciation 2,210,537 1,031,967 1,759,172 177,128 5,178,804 2,723,472
Other 0 154,045 56,427 22,938 233,410 36,893
Total Operating Expenses 42,310,628 4,877,007 5,599,591 4,813,316 57,600,542 12,650,379
Operating Income 4,254,969 3,720,160 3,283,891 397,802 11,656,822 (837,574)
Nonoperating Revenues (Expenses)
Investment Income 370,522 439,285 266,272 48,719 1,124,798 199,005
Reimbursed Expenses 26,862 5,055 25,557 1,440 58,914 63,486
Grants 0 50,700 0 0 50,700 0
Earnings in Joint Venture 0 0 0 1,316,660 1,316,660 0
Interest Expense (736,076) (1,332,355) (1,708,902) 0 (3,777,333) 0
Other, net (114,261) 258,973 250,103 5,169 399,984 93,419
Total Nonoperating Revenues (Expenses) (452,953) (578,342) (1,166,970) 1,371,988 (826,277) 355,910
Income Before Capital Contributions
and Transfers 3,802,016 3,141,818 2,116,921 1,769,790 10,830,545 (481,664)
Capital Contributions 425,613 2,045,171 1,416,845 0 3,887,629 0
Transfers In 0 0 0 0 0 1,159,582
Transfers Out (4,778,314) (911,412) (832,648) (331,836) (6,854,210) (222,468)
Change in Net Assets (550,685) 4,275,577 2,701,118 1,437,954 7,863,964 455,450
Beginning Net Assets 44,731,298 42,654,019 32,849,732 15,079,102 17,651,884
Ending Net Assets 44,180,613$ 46,929,596$ 35,550,850$ 16,517,056$ 18,107,334$
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds. (316,958)
Change in net assets of business-type activities 7,547,006$
The notes to the financial statements are an integral part of this statement.
30
31
CITY OF COLLEGE STATION, TEXAS
Statement of Cash Flows
Proprietary Funds
For the Fiscal Year Ended September 30, 2003
Governmental
Business-type Activities - Enterprise Funds Activities
Electric Water Sewer
Other
Enterprise
Funds Total
Internal Service
Funds
Cash Flows from Operating Activities:
Cash Received from Customers 46,506,490$ 8,735,538$ 8,875,278$ 5,246,513$ 69,363,819$ 11,832,544$
Cash Payments to Suppliers for Goods and Services (35,707,181) (1,773,113) (2,636,902) (3,081,284) (43,198,480) (7,739,308)
Cash Payments to Employees for Services (2,197,748) (1,251,318) (1,402,678) (1,535,864) (6,387,608) (2,269,365)
Customer Deposits Received 45,092 24,498 0 0 69,590 0
Customer Deposits Returned 0 0 0 (50) (50) 0
Cash Received for Reimbursed Expenses 26,862 5,055 25,557 1,440 58,914 63,486
Cash Received from Grants 0 50,700 0 0 50,700 0
Cash Received for Miscellaneous Revenues 0 258,973 283,832 6,896 549,701 62,472
Cash Received from Other Funds 0 0 0 0 0 62,161
Cash Paid to Other Funds 0 0 0 0 0 (50,233)
Cash Paid for Miscellaneous Expenses (113,728) (53,128) 0 (4,231) (171,087) (38,201)
Net Cash Provided by Operating Activities 8,559,787 5,997,205 5,145,087 633,420 20,335,499 1,923,556
Cash Flows from Noncapital Financing Activities:
Transfers In from Other Funds 0 0 0 0 0 1,161,082
Transfers Out to Other Funds (4,778,314) (911,412) (832,648) (331,836) (6,854,210) (222,468)
Net Cash Provided (Used) by Noncapital Financing Activities (4,778,314) (911,412) (832,648) (331,836) (6,854,210) 938,614
Cash Flows from Capital and Related Financing Activities:
Acquisition and Construction of Capital Assets (9,203,777) (3,942,586) (2,667,993) (23,500) (15,837,856) (2,549,100)
Proceeds from Sale of Assets 0 0 0 0 0 225,400
Principal Paid on Revenue Bonds (960,350) (1,142,300) (1,712,350) 0 (3,815,000) 0
Interest Paid on Revenue Bonds (756,227) (1,400,313) (1,792,892) 0 (3,949,432) 0
Fees Paid to Fiscal Agent (3,638) (2,676) (4,374) 0 (10,688) 0
Proceeds from Revenue Bonds 4,850,000 0 0 0 4,850,000 0
Issuance Costs Paid on Revenue Bonds (38,397) (7,322) (4,374) 0 (50,093) 0
Net Cash Used by Capital and Related Financing Activities (6,112,389) (6,495,197) (6,181,983) (23,500) (18,813,069) (2,323,700)
Cash Flows from Investing Activities:
Purchase of Investments (32,712,749) (45,616,056) (25,106,488) (5,141,848) (108,577,141) (21,882,771)
Proceeds from Sale and Maturities of
Investment Securities 31,628,022 43,228,322 24,314,072 4,660,309 103,830,725 20,154,263
Investment Income 425,691 497,509 299,943 53,759 1,276,902 215,900
Net Cash Used by Investing Activities (659,036) (1,890,225) (492,473) (427,780) (3,469,514) (1,512,608)
Net Decrease in Cash and Cash Equivalents (2,989,952) (3,299,629) (2,362,017) (149,696) (8,801,294) (974,138)
Cash and Cash Equivalents, Oct. 1 8,329,825 10,894,499 6,453,467 1,041,886 26,719,677 4,715,260
Cash and Cash Equivalents, Sept. 30 5,339,873$ 7,594,870$ 4,091,450$ 892,190$ 17,918,383$ 3,741,122$
32
CITY OF COLLEGE STATION, TEXAS
Statement of Cash Flows
Proprietary Funds
For the Fiscal Year Ended September 30, 2003
Governmental
Business-type Activities - Enterprise Funds Activities
Electric Water Sewer
Other
Enterprise
Funds Total
Internal Service
Funds
Reconciliation of Operating Income (Loss) to Net Cash
Provided by Operating Activities:
Operating Income (Loss) 4,254,969$ 3,720,160$ 3,283,891$ 397,802$ 11,656,822$ (837,574)$
Adjustment to Reconcile Operating Income (Loss) to Net
Cash Provided by Operating Activities:
Depreciation, Bad Debt Expense, Inventory Loss 2,467,191 1,078,605 1,809,545 177,128 5,532,469 2,723,472
Provision for Uncollectible Accounts 32,273 1,437 7,184 2,347 43,241 0
Miscellaneous Nonoperating Revenues 26,862 314,728 309,389 8,336 659,315 125,958
Miscellaneous Nonoperating Expenses (113,728) (53,128) 0 (4,231) (171,087) (63,010)
Changes in Assets and Liabilities: 0
Change in Accounts Receivable (70,583) 138,371 (8,204) 35,395 94,979 53,275
Change in Other Receivables 11,476 0 0 0 11,476 0
Change in Due from Other Funds 0 0 0 0 0 62,161
Change in Inventory (54,304) 43,123 (2,617) (31,469) (45,267) (5,717)
Change in Prepaid Costs 0 0 0 0 0 32,363
Change in Accounts Payable 2,079,866 752,258 (248,035) 50,633 2,634,722 (379,208)
Change in Due to Other Funds 0 0 0 0 0 (50,233)
Change in Claims Payable 0 0 0 0 0 267,362
Change in Accrued Liabilities (127,766) (16,151) (3,762) (7,417) (155,096) (2,834)
Change in Refundable Deposits 45,092 24,498 0 (50) 69,540 0
Change in Accrued Vacation 8,439 (6,696) (2,304) 4,946 4,385 (2,459)
Total Adjustments 4,304,818 2,277,045 1,861,196 235,618 8,678,677 2,761,130
Net Cash Provided by Operating Activities 8,559,787$ 5,997,205$ 5,145,087$ 633,420$ 20,335,499$ 1,923,556$
The notes to the financial statements are an integral part of this statement.
33
34
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2003
City of College Station, Texas
35
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 holds a 50% interest and ownership 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 (i.e., the statement of net assets and the
statement of activities) report information on all of the nonfiduciary 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
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund financial
statements. 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. Revenues are recognized
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2003
City of College Station, Texas
36
as soon as they are both measurable and available. Revenues are considered to be
available when they are collectible within the current period or soon enough thereafter 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.
The Debt Service Fund accounts for the financial resources accumulated for the payment
of principal, interest and related costs on long-term debt paid primarily from taxes levied
by the City. The fund balance of the Debt Service Fund is reserved to signify that the
amounts are restricted exclusively for debt service expenditures.
The Streets Capital Projects Fund accounts 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 and by investing those proceeds.
The City reports the following major proprietary funds:
The Electric Fund accounts for the activities necessary to provide electric services to the
residents of the City. These activities include administration, distribution system
operations and maintenance, transmission system operations and maintenance, new
construction, and financing and related debt 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.
The Sewer 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.
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2003
City of College Station, Texas
37
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 sewer 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; activities related to the
City's printing and mail operations; 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.
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 Sewer 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, sewer, 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 unrestricted resources first, and then restricted resources as they are needed.
D. Implementation of New Accounting Principles
In fiscal year 2003, the City adopted seven new statements of financial accounting standards
issued by the Governmental Accounting Standards Board (GASB):
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2003
City of College Station, Texas
38
GASB Statement No. 33--Accounting and Financial Reporting for Nonexchange Transactions
("GASB 33")
Statement No. 33 prescribes accounting and financial reporting standards for nonexchange
transactions. It applies to those nonexchange transactions involving financial or capital
resources but does not apply to other resources, such as contributed services. In prior years,
capital contributions were recorded as a direct addition to the contributed capital equity
account. GASB 33 requires contributions of capital assets be recorded as revenue in the
Statement of Revenues, Expenses and Changes in Fund Net Assets.
Capital contributions in the City's electric, water and sewer funds amounted to $3.8 million.
Capital contributions recorded as revenue for governmental activities totaled $6.4 million. For
reporting purposes these revenues are shown in the statement of activities as capital
contributions program revenue.
GASB Statement No. 34--Basic Financial Statements - and Management's Discussion and
Analysis - for State and Local Governments ("GASB 34")
Statement No. 34 affects the manner in which the City records transactions and presents
financial information. The goal of Statement No. 34 is to make the Comprehensive Annual
Financial Reports (CAFRs) of state and local governments easier to understand and more
useful to the people who use governmental financial information to make decisions. State
and local governments have traditionally used a financial reporting model substantially
different from the one used to prepare private sector financial reports. GASB Statement No.
34 establishes new requirements and a new reporting model for state and local governments
that more closely resemble private sector financial reporting.
The governmental fund financial statements continue to be presented as a building block for
the new GASB 34 statements. However, the following are new sections not previously
included in the CAFR:
a. Management's Discussion and Analysis--GASB Statement No. 34 requires that
financial statements be accompanied by a narrative introduction and analytical
overview of the City's financial activities in the form of "management's discussion
and analysis" (MD&A). This analysis is similar to the analysis provided in the annual
reports of private sector organizations.
b. Government-Wide Financial Statements--The reporting model includes financial
statements prepared using full accrual accounting for all of the City's activities. This
approach includes not just current assets and liabilities but also capital and other
long-term liabilities. Accrual accounting also reports all of the revenues and costs of
providing services each year, not just those received or paid in the current year or
soon thereafter.
Statement of Net Assets--The Statement of Net Assets is designed to display the
financial position of the primary government (government and business-type
activities). The City now reports all capital assets in the government-wide statement
of net assets, and reports depreciation expense--the cost of "using up" capital
assets--in the statement of activities. The net assets of the City are broken down
into three categories: 1) invested in capital assets, net of related debt, 2) restricted,
and 3) unrestricted.
Statement of Activities--The government-wide statement of activities reports
expenses and revenues in a format that focuses on the cost of each of the City's
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2003
City of College Station, Texas
39
functions. The expense of individual functions is compared to the revenue
generated directly by the function. Accordingly, the City has recorded capital and
certain other long-term assets and liabilities in the statement of net assets and has
reported all revenues and the cost of providing services under the accrual basis of
accounting in the statement of activities.
The government-wide financial statements split the City programs between governmental
and business-type activities. The beginning net asset amount for the business-type
activities equals fund equity of the enterprise funds from the previous year. The
beginning net asset amount for governmental activities reflects fund balance for
governmental funds at October 1, 2002 adjusted for the conversion to the accrual basis
of accounting and the consolidation of internal service fund's net assets.
As a result of implementing GASB 34, the previously reported governmental fund balance
reconciles to net assets of the governmental activities as of October 1, 2002 as follows:
Fund Balance October 1, 2002 66,531,940$
Net Capital Assets 104,152,633
Long-term Liabilities (76,455,099)
Interest Expense (473,737)
Deferred Revenue 631,768
Internal Service Fund Assets 16,422,002
Net Assets, October 1, 2002 110,809,507$
GASB Statement No. 36--Recipient Reporting for Certain Shared Nonexchange
Revenues ("GASB 36")
GASB Statement No. 36 amends GASB Statement No. 33 with respect to the manner in
which shared nonexchange revenues are accounted for by recipient governments.
GASB Statement No. 37--Basic Financial Statements - and Management's Discussion
and Analysis - for State and Local Governments: Omnibus ("GASB 37")
This statement amends GASB Statement No. 34 to either 1) clarify certain provisions or
2) modify other provisions that GASB believes may have unintended consequences in
some circumstances. Accordingly, the City considered the effects of this statement when
adopting the provisions of GASB Statement No. 34 as previously described.
GASB Statement No. 38--Certain Financial Statement Note Disclosures ("GASB 38")
This statement modifies, establishes, and rescinds certain financial statement disclosure
requirements. Accordingly, certain footnote disclosures have been revised to conform to
the provisions of GASB Statement No. 38.
GASB Statement No. 39--Determining Whether Certain Organizations Are Component
Units ("GASB 39")
This statement establishes additional guidance on the application of existing standards
for the assessment of potential component units in determining the financial reporting
entity.
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2003
City of College Station, Texas
40
GASB Statement No. 41--Budgetary Comparison Schedules--Perspective Differences--
An Amendment of GASB Statement No. 34 ("GASB 41")
This statement amends paragraph 130 of Statement No. 34 and applies to all state and
local governments.
GASB Interpretation No. 6--Recognition and Measurement of Certain Liabilities and
Expenditures in Governmental Fund Financial Statements
GASB Interpretation No. 6 clarifies the application of existing standards for distinguishing
the respective portions of certain types of liabilities that should be reported as (a)
governmental fund liabilities and expenditures and (b) general long-term liabilities of the
City.
E. 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, repurchase agreements, and government securities
and agency 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
(First American Bank, Bryan, Texas) 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.
Investments
Investments are made in accordance with the City's Investment Policy which was adopted
by the City Council in June 2003. 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 Director of
Fiscal Services 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.
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2003
City of College Station, Texas
41
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 Investment Officer and the decision to execute the "swap" rests
with him. 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 I.
Dealers"). All securities are purchased delivery-vs.-payment and held in the City's name in
a safekeeping account at JP Morgan Chase Bank.
Investments of all funds consist mainly of U. S. Treasury and Agency securities, flexible
repurchase agreements, and investments in public funds investment pools (TexPool).
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.
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 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.
Payments made to vendors for services that will benefit periods beyond September 30,
2003, 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.
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2003
City of College Station, Texas
42
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."
Restricted Assets
In the Enterprise Funds, proceeds of utility revenue bonds, as well as resources set aside
for their repayment, are classified as restricted assets on the balance sheet because their
use is limited by applicable bond covenants. In addition, customer utility deposits are
classified as restricted assets because the deposit remains the property of the customer
and is not available for operations. In the General Fund, restricted assets are comprised of
Municipal Court cash bonds, Municipal Court security funds, Municipal Court technology
funds, and police seizure funds, all of which are not available for operations.
Investment in Joint Venture
The Proprietary Funds' investment in joint venture is recorded using the equity method of
accounting. Required disclosures concerning the joint venture are presented in Note V-C.
Capital Assets
Capital assets, 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
$3,000 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 sewer 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.
Beginning in FY 03 the estimated useful lives for the utility systems have been adjusted
prospectively to coordinate with FERC or NARUC standards. All other estimated lives
have been adjusted to comply with GFOA recommended practices guidelines.
Depreciation of all assets is recorded and calculated using the straight-line method over
the following estimated useful lives:
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2003
City of College Station, Texas
43
Electric System 1-50 Years
Water System 2-50 Years
Sewer 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
The amounts reported for governmental-type infrastructure are based on historical data
and are subject to adjustments as a result of an appraisal to be conducted during fiscal
year 2004.
Compensated Absences
Employees are credited with vacation at rates of 10 to 20 days per year, depending upon
length of service. Carryover of unused vacation time from one year to the next is allowed
for a maximum of two years. Upon termination, the respective employees are paid for any
accrued vacation not taken (up to the two-year maximum). Accumulated vacation is
accrued when earned in the government-wide and proprietary fund financial statements.
No liability has been recorded in the governmental fund financial statements.
Employees are credited with sick leave at the rate of one day per month. There is no
maximum to the number of sick days that each employee can accumulate. Because the
City does not pay employees for unused accumulated sick leave, no related liability has
been recorded in the financial statements.
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 reservations of fund balance for
amounts that are not available for appropriation or are legally restricted by outside parties
for use for specific purpose. Designations of fund balance represent tentative management
plans that are subject to change.
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2003
City of College Station, Texas
44
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.
II. Reconciliation of Government-Wide and Fund Financial Statements
A. Explanation of Certain Differences Between the Governmental Fund Balance Sheet and
the Government-Wide Statement of Net Assets
The governmental fund balance sheet includes a reconciliation between fund balance--total
governmental funds and net assets--governmental activities as reported in the government-
wide statement of net assets. The details of this $55,678,634 difference are as follows:
When capital assets (land, buildings, equipment, etc.) that are to be used
in governmental activities are purchased or constructed, the costs of
those assets are reported as expenditures in governmental funds.
However, the statement of net assets includes those capital assets
among the assets of the City as a whole.
Cost of Capital Assets 145,302,009$
Accumulated Depreciation (29,708,471)
Net Capital Assets 115,593,538$
Long-term liabilities applicable to the City's governmental activities are
not due and payable in the current period and, accordingly, are not
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2003
City of College Station, Texas
45
reported as fund liabilities in the governmental funds. All liabilities, both
current and long-term, are reported in the statement of net assets.
Bonds Payable (75,695,000)$
Accrued Interest Payable (469,476)
Compensated Absences (1,604,254)
(77,768,730)$
Because the focus of governmental funds is on short-term financing,
some assets will not be available to pay for current period expenditures.
Those assets (for example, receivables) are offset by deferred revenues
in the governmental funds and, thus, are not included in fund balance.
Deferred revenue for emergency medical services, paving assessments,
and property taxes shown on the governmental fund statements is not
deferred on the statement of net assets.
Deferred property tax revenue 331,582$
Deferred emergency medical services revenue 306,037
Paving assessment revenue 21,796
659,415$
Internal service funds are used by management to charge certain
activities, such as self insurance, print-mail services, and fleet
maintenance, to individual funds. The assets and liabilities of certain
internal service funds are included in governmental activities in the
statement of net assets.
17,194,410$
B. Explanation of Certain Differences Between the Governmental Fund Statement of
Revenues, Expenditures, and Changes in Fund Balances and the Government-Wide
Statement of Activities
The governmental fund statement of revenues, expenditures, and changes in fund balances
includes a reconciliation between net changes in fund balances--total governmental funds
and changes in net assets of governmental activities as reported in the government-wide
statement of activities. One element of that reconciliation explains that "Governmental funds
report capital outlays as expenditures. However, in the statement of activities the cost of
those assets is allocated over their estimated useful lives and reported as depreciation
expense." The details of this $5,041,727 difference are as follows:
Capital Outlay 9,011,549$
Depreciation Expense (3,969,822)
Net Adjustment to increase net changes in fund balances-
total governmental funds to arrive at changes in net assets
of governmental activities 5,041,727$
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2003
City of College Station, Texas
46
Another element of that reconciliation states that "The net effect of various miscellaneous
transactions involving capital assets (i.e., sales, trade-ins, and donations) is to increase net
assets." The details of the $6,399,178 difference are as follows:
Donations of capital assets increase net assets in the
statement of activities, but do not appear in the governmental
funds because they are not a financial resource. 6,399,178$
Another element of that reconciliation states that "the issuance of long-term debt (e.g., bonds,
leases) 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 these amounts are deferred and amortized in the statement of activities."
The details of this $750,000 difference are as follows:
Debt issued or incurred:
Issuance of general obligation bonds
and certificates of obligation 6,570,000$
Principal Payments (5,820,000)
Net Adjustment to decrease net changes in fund balances-
total governmental funds to arrive at changes in net assets of
governmental activities 750,000$
Another element of that reconciliation states that "Some expenses reported in the statement
of activities do not require the use of current financial resources and, therefore, are not
reported as expenditures in governmental funds." The details of this $89,894 difference are
as follows:
Compensated absences 94,155$
Accrued interest (4,261)
Net Adjustment to decrease net changes in fund balances-
total governmental funds to arrive at changes in net assets of
governmental activities 89,894$
III. Stewardship, Compliance, and Accountability
A. Budgetary Information
The Council approved two budget amendments during fiscal year 2003. Those budgets
amendments included the following appropriations:
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2003
City of College Station, Texas
47
Gainsharing $ 171,094
Fire Equipment 128,760
Professional Services for Cable
Franchise Renewal 100,000
Street Improvement Land Purchase 115,000
Parks Summer Tennis Program 5,500
Arts Council Building 200,000
Water/Sewer Taps 100,000
Workers' Compensation Claims 100,000
Electric Litigation Settlement 8,700,000
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 which 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/expenses over appropriations during fiscal year
2003, and the funds in which they occurred are as follows:
Fund Amount
Debt Service $ 15,663
Fleet Maintenance 129,121
Print/Mail 47,603
Property and Casualty 85,352
Workers' Compensation 149,790
Unbudgeted interest expense on the 2003 Certificate of Obligation led to the $15,663 excess in
the Debt Service Fund. Higher than expected expenses for supplies resulted in the $129,121
excess in the Fleet Maintenance Fund, and the $47,603 excess in the Print/Mail Services Fund
is a result of higher than expected salaries and benefits, supplies and capital outlay
expenditures.
In the Property and Casualty and Workers' Compensation Funds, higher than expected
expenses for claims, administration fees, and premiums resulted in the $85,352 and $149,790
excess.
C. Deficit Fund Balance / Unreserved Retained Earnings
The Communication Services Fund, Fleet Maintenance Fund, Print/Mail Fund, and Workers'
Compensation Fund ended the fiscal year with an Unreserved Retained Earnings deficit. The
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2003
City of College Station, Texas
48
$31,351 deficit in the Communication Services Fund, the $42,350 deficit in the Fleet
Maintenance Fund, and the $2,584 deficit in the Print/Mail Fund are all primarily due to
unbudgeted depreciation expense. The $21,673 deficit in the Workers' Compensation Fund is
primarily due to higher than expected expenses for claims and premiums.
IV. Detailed Notes on All Funds
A. Change in Accounting Policy
The City implemented GASB 34 for the fiscal year ended September 30, 2003. The following
adjustments were made in order to properly state beginning net assets using the full accrual
method of accounting:
Restatement of Beginning Net Assets for Governmental Funds
Net Assets:
Fund balance at September 30,2002, as previously reported for:
Governmental fund types
General 10,111,225$
Special Revenue 15,616,606
Debt Service 2,355,213
Capital Projects 37,705,829
Cemetery Perpetual Care 743,067
Total fund balances at September 30, 2002 as previously reported 66,531,940
Prior period adjustments
GASB Statement No. 34 adjustments
Beginning residual balances from internal activities accounted
for as Internal Service Funds 16,422,002
Net capital assets 104,152,633
Long-term liabilities - Prior Years Compensated Absences (1,510,099)
Long-term liabilities - Debt (74,945,000)
Interest expense related to prior years (473,737)
Deferred revenue related to prior years 631,768
44,277,567
Net Assets - Governmental Funds at October 1, 2002 110,809,507$
In addition several adjustments were made to the fund financial statements in order to
properly record the activity in accordance with the recent accounting pronouncements.
B. Cash and Investments
Deposits
State statutes require that all deposits in financial institutions be fully collateralized with
depository insurance or by U.S. Government obligations or its agencies and instrumentalities
or by direct obligations of Texas or its agencies and instrumentalities that have a market
value of not less than the principal amount of the deposits. At year end, the City's demand
deposits at First American Bank were entirely covered by federal depository insurance or by
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2003
City of College Station, Texas
49
collateral held by the City's custodial bank (Federal Home Loan Bank of Dallas) in the City's
name. At year end, the carrying amount of the City's demand deposits was $1,062,363, and
the bank balance was $1,339,853.
Investments
The City's investment program is guided by State statutes, by various City ordinances, and by
the City's investment policy which amplifies those guidelines and prescribes how the City will
operate its investment program in accordance with applicable laws and regulations. This
policy further sets forth (a) the basic principles governing the investment of City funds, (b) the
objectives of the City's investment program, and (c) the authority, responsibilities, limitations,
documentation and requirements to be used in the administration and operation of the City's
investment program.
Investments authorized by the City's investment policy are those approved by the revised
State of Texas Public Funds Investment Act of 1997 and the Texas Public Funds 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 of 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 by obligations qualified as acceptable collateral;
• Prime domestic bankers' acceptances;
• 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;
• Fully collateralized repurchase agreements having a defined termination date,
secured by qualified obligations, pledged with a third party, and placed through a
primary government securities dealer as defined by the Federal Reserve, or a bank
domiciled in Texas;
• Money-market mutual funds that are SEC registered no-load funds with dollar-
weighted average portfolio maturity of 120 days or less; or
• Public funds investment pools.
The City's investment policy prohibits the substitution of collateral on repurchase agreements
without prior approval by the City. Also, reverse repurchase agreements are prohibited by
the policy.
The City's investment portfolio is comprised of the following classifications of securities:
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2003
City of College Station, Texas
50
As a Percentage
Bank Demand Accounts 1.00%
U.S. Treasury Securities 1.50%
U.S. Government Agencies and Instrumentalities Securities 59.00%
Texas Local Government Investment Pool 24.00%
Fidelity Money Market Mutual Fund 9.50%
Flexible Repurchase 5.00%
Total 100.00%
The City's investments are categorized to give an indication of the level of risk assumed by
the City at year end. Category 1 includes securities that are insured or registered, or
securities held by the City or its agent in the City's name. Category 2 includes uninsured and
unregistered securities, with securities held by the counterparty's trust department or agent in
the City's name. Category 3 includes uninsured and unregistered securities, with securities
held by the counterparty in the City's name, or held by the counterparty's trust department or
agent, but not in the City's name.
All securities held at September 30, 2003 were Category 1 investments with the exception of
Texpool. The fair value of all investments was as follows:
Fair Value
Bank Demand Accounts 1,208,248$
U.S. Treasury Securities 1,812,372
U.S. Government Agencies and Instrumentalities Securities 71,286,648
Texas Local Government Investment Pool 28,997,959
Fidelity Money Market Mutual Fund 11,478,359
Flexible Repurchase 6,041,241
Total 120,824,827$
"TexPool" is a local government investment pool created and managed by the Texas State
Treasurer to invest funds on behalf of Texas political subdivisions. The pool operates on a
$1.00 net asset value basis and allows same day or next day redemptions and deposits.
Interest is allocated daily based on portfolio earnings and participant account balances. The
City's investment in TexPool is stated at cost, which approximates fair value. The fair value
of Texpool's investments as a whole was at least 102% of the book value as of September
30, 2003. The fair value of the City's investment is the same as the value of the pool shares.
TexPool is not managed by the City, and the City does not possess securities that exist in
either physical or book entry form. Consequently, these securities have not been classified.
Under the Texas Public Funds Investment Act, TexPool must maintain an AAA or equivalent
rating from at least one nationally recognized rating agency. TexPool is currently rated
AAAm by Standard and Poor's.
The revenue bond ordinances require disclosure of the investments held by the reserve fund.
Sufficient investments exist in the pool to adequately meet reserve fund requirements. A
detailed list of those securities is available in the office of the Director of Fiscal Services.
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2003
City of College Station, Texas
51
C. Receivables
Receivables as of year end for the City's individual major funds and nonmajor and internal
service funds in the aggregate, including the applicable allowances for uncollectible accounts,
are as follows:
Governmental Activities:Internal
Debt Streets Service Fund
General Service Projects Nonmajor Allocation Total
Taxes:
Property 126,225$ 205,357$ -$ -$ -$ 331,582$
Beverage 108,557 - - - - 108,557
Sales Tax 1,117,403 - - - - 1,117,403
Subtotal Taxes 1,352,185 205,357 - - - 1,557,542
Accrued Interest 37,049 4,140 63,595 88,905 26,093 219,782
Grants 87,528 - - 323,399 - 410,927
Accounts/Charges for Services 499,079 - 246,774 211,977 142,315 1,100,145
Special Assessments 21,796 - - - 21,796
Miscellaneous 37,513 - - 9,356 - 46,869
Total Gross Governmental 2,035,150 209,497 310,369 633,637 168,408 3,357,061
Less Allowance for Uncollectible (48,865) - (246,774) (18,973) (2,711) (317,323)
Net Total Receivables 1,986,285$ 209,497$ 63,595$ 614,664$ 165,697$ 3,039,738$
Business-type Activities:Internal
Service Fund
Electric Water Sewer Nonmajor Allocation Total
Accrued Interest 11,152$ 30,243$ 11,124$ 5,610$ 166$ 58,295$
Accounts/Charges for Services 6,732,462 996,484 1,038,125 596,222 18,154 9,381,447
Miscellaneous 1,106,193 - - 215,493 8,945 1,330,631
Total Gross Major Enterprise 7,849,807 1,026,727 1,049,249 817,325 27,265 10,770,373
Less Allowance for Uncollectible (1,494,930) (39,762) (78,114) (46,479) (13,692) (1,672,977)
Net Total Receivables 6,354,877$ 986,965$ 971,135$ 770,846$ 13,573$ 9,097,396$
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. At the end of the fiscal year, the various components of deferred revenue
and unearned revenue reported in the governmental funds were as follows:
Unavailable Unearned Total
Property Tax 331,583$ -$ 331,583$
Special Assessments 21,796 - 21,796
Fines and Penalties - 677,838 677,838
Emergency Services 306,037 - 306,037
Other 36,975 - 36,975
696,391$ 677,838$ 1,374,229$
D. Capital Assets
Capital asset activity for the year ended September 30, 2003 was as follows:
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2003
City of College Station, Texas
52
Beginning Ending
Governmental Activities Balance Increases Decreases Balance
Capital Assets, Not Being Depreciated
Land 18,240,824$ 1,473,503$ -$ 19,714,327$
Construction in Progress 18,000,215 11,227,758 (15,384,869) 13,843,104
Total Capital Assets, Not Being Depreciated 36,241,039 12,701,261 (15,384,869) 33,557,431
Capital Assets, Being Depreciated
Buildings and Building Improvements 18,739,391 3,913,006 - 22,652,397
Improvements Other Than Buildings 10,469,640 3,189,044 - 13,658,684
Machinery and Equipment 25,278,189 2,832,690 (1,941,048) 26,169,831
Infrastructure 58,129,552 10,969,551 - 69,099,103
Total Capital Assets, Being Depreciated 112,616,772 20,904,291 (1,941,048) 131,580,015
Less Accumulated Depreciation for:
Buildings and Building Improvements 4,288,635 368,012 4,656,647
Improvements Other Than Buildings 5,324,444 540,149 - 5,864,593
Machinery and Equipment 14,522,563 3,858,331 (1,514,227) 16,866,667
Infrastructure 11,850,216 1,875,147 - 13,725,363
Total Accumulated Depreciation 35,985,858 6,641,639 (1,514,227) 41,113,270
Total Capital Assets Being Depreciated, Net 76,630,914 14,262,652 (426,821) 90,466,745
Governmental Type Activities Capital Assets, Net 112,871,953$ 26,963,913$ (15,811,690)$ 124,024,176$
Beginning Ending
Business-Type Activities Balance Increases Decreases Balance
Capital Assets, Not Being Depreciated
Land 672,811$ -$ -$ 672,811$
Construction in Progress 28,078,744 13,146,015 (10,104,015) 31,120,744
Total Capital Assets, Not Being Depreciated 28,751,555 13,146,015 (10,104,015) 31,793,555
Capital Assets, Being Depreciated
Electric System 79,373,678 4,887,640 (747,132) 83,514,186
Water System 56,947,504 3,482,701 (20,819) 60,409,386
Sewer System 56,734,151 2,466,226 (29,717) 59,170,660
Buildings and Building Improvements 5,608,687 114,376 - 5,723,063
Improvements Other Than Buildings - - - -
Machinery and Equipment 1,567,168 69,875 (225,801) 1,411,242
Total Capital Assets, Being Depreciated 200,231,188 11,020,818 (1,023,469) 210,228,537
Less Accumulated Depreciation for:
Electric System 34,454,084 2,262,193 (337,884) 36,378,393
Water System 17,593,109 1,031,967 (28,447) 18,596,629
Sewer System 13,728,525 1,788,749 (30,335) 15,486,939
Buildings and Building Improvements 140,179 140,217 - 280,396
Improvements Other Than Buildings - - - -
Machinery and Equipment 1,456,060 36,911 (188,575) 1,304,396
Total Accumulated Depreciation 67,371,957 5,260,037 (585,241) 72,046,753
Total Capital Assets Being Depreciated, Net 132,859,231 5,760,781 (438,228) 138,181,784
Business Type Activities Capital Assets, Net 161,610,786$ 18,906,796$ (10,542,243)$ 169,975,339$
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2003
City of College Station, Texas
53
Depreciation expense was charged to governmental activities of the City as follows:
Development Services 18,744$
Fire 97,797
Fiscal Services 54,072
General Government 48,028
Office of Technology and Information Services 351,430
Parks and Recreation 598,987
Police 99,599
Public Works 157,385
Non-departmental 2,543,780
Total Depreciation Expense 3,969,822$
E. Interfund Transactions
Transfers between funds during the year were as follows:
Governmental Business-type
Transfers In Transfers Out Activities, net Activities, net
General Fund 6,741,826$ (1,103,590)$ 5,638,236$ -$
Debt Service Fund 958,500 - 958,500 -
Special Revenue Funds:
Community Development - (147,504) (147,504) -
Convention Center - (742,500) (742,500) -
Hotel/Motel - - - -
Melrose TIF 652 - 652 -
Parks Escrow 1,040 - 1,040 -
Capital Projects Funds:
Business Park Projects - - - -
Drainage Projects 34,432 - 34,432 -
General Government Projects 75,450 - 75,450 -
Parks Projects - - - -
Streets Projects 98,790 - 98,790 -
Enterprise Funds:
Electric - (4,778,314) - (4,778,314)
Water - (911,412) - (911,412)
Sewer - (832,648) - (832,648)
Sanitation - (331,468) - (331,468)
Parking - (368) - (368)
Internal Service Funds:
Communication Services 49,300 (1,363) 47,937 -
Employee Benefits - - - -
Equipment Replacement 972,144 (216,000) 756,144 -
Fleet Maintenance - (2,708) (2,708) -
Print-Mail Services - (255) (255) -
Property and Casualty 22,500 - 22,500 -
Unemployment - - - -
Utility Billing - (2,142) - (2,142)
Workers' Compensation 115,638 - 115,638 -
9,070,272$ (9,070,272)$ 6,856,352$ (6,856,352)$
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2003
City of College Station, Texas
54
The composition of due to/due from balances as of September 30, 2003 is as follows:
Due To Due From Amount
General Fund Fleet Maintenance Fund $19,271
Electric Fund Hotel/Motel Tax Fund $200,000
F. Deferred Charges
See Note IV C.
G. Long-Term Debt
A summary of long-term debt transactions, including current portion, for the year ended
September 30, 2003 is as follows:
Amounts
Beginning Incurred/ Matured/ Ending Due Within
Balance Issued Retired Balance One Year
Governmental Activities:
General Obligation Bonds $41,665,000 $4,790,000 $3,285,000 $43,170,000 $2,875,000
Certificates of Obligation 33,280,000 1,780,000 2,535,000 32,525,000 2,805,000
Accrued Vacation 1,547,337 1,069,681 972,338 1,644,680 80,413
Governmental Activity
Long Term Debt $76,492,337 $7,639,681 $6,792,338 $77,339,680 $5,760,413
Business-type Activities:
Utility Revenue Bonds $78,235,000 $16,010,000 $14,565,000 $79,680,000 $4,025,000
Accrued Vacation:
Electric Fund 118,665 131,849 123,409 127,105 3,198
Water Fund 52,773 49,679 56,375 46,077 3,171
Sewer Fund 59,908 50,866 53,171 57,603 3,853
Other Enterprise 73,172 90,823 91,526 72,469 5,762
Business-type Activity
Long Term Debt $78,539,518 $16,333,217 $14,889,481 $79,983,254 $4,040,984
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2003
City of College Station, Texas
55
Long-term debt at September 30, 2003 includes the following individual issues (not including
unamortized premiums or discounts):
Interest Issue Maturity Original Net
Rate (%) Date Date Issue Retirement Outstanding
General Obligation Bonds:
1991 Issue 6.00-8.00 12/23/91 2/15/12 4,625,000$ 3,875,000$ 750,000$
1994 Issue 5.50-7.50 8/15/94 2/14/14 6,250,000 3,200,000 3,050,000
1995 Issue 5.10-7.00 8/1/95 2/15/13 4,700,000 1,450,000 3,250,000
1996 Issue and Refunding 4.70-7.50 12/1/96 2/15/15 11,845,000 6,450,000 5,395,000
1998 Issue 4.50-6.50 4/1/98 2/15/17 6,200,000 940,000 5,260,000
1999 Issue 3.40-5.40 4/15/99 2/15/17 6,230,000 895,000 5,335,000
2000 Issue 5.00-7.00 4/13/00 2/15/18 8,460,000 1,545,000 6,915,000
2001 Issue 5.00-7.00 8/1/01 2/15/17 4,140,000 1,465,000 2,675,000
2002 Issue 4.25-6.25 3/1/02 2/15/21 6,445,000 695,000 5,750,000
2003 Issue 3.00-5.00 7/9/03 2/15/23 4,790,000 - 4,790,000
63,685,000$ 20,515,000$ 43,170,000$
Certificates of Obligation:
1998 Issue 4.55-7.30 4/1/98 2/15/17 5,500,000$ 835,000$ 4,665,000$
2000 Issue 5.00-7.00 4/13/00 2/15/18 4,050,000 945,000 3,105,000
2000A Issue 4.75-6.75 8/1/00 2/15/20 8,100,000 1,335,000 6,765,000
2001 Issue 3.50-5.00 8/2/01 2/15/20 3,650,000 920,000 2,730,000
2002 Issue 3.50-5.125 3/1/02 2/15/20 14,480,000 1,000,000 13,480,000
2003 Issue 2.50-3.25 12/5/02 2/15/08 1,000,000 - 1,000,000
2003A Issue 3.0-4.25 7/9/03 2/15/23 780,000 - 780,000
37,560,000$ 5,035,000$ 32,525,000$
Utility Revenue Bonds:
1994 Issue 5.40-6.40 10/1/94 2/1/04 16,500,000$ 15,675,000$ 825,000$
1995 Issue 5.25-6.25 8/1/95 2/1/16 6,000,000 2,100,000 3,900,000
1996 Issue 4.15-5.60 12/1/96 2/1/17 10,110,000 2,835,000 7,275,000
1998 Issue 4.55-6.50 4/1/98 2/1/17 2,700,000 425,000 2,275,000
2000 Issue 5.00-7.00 4/13/00 2/15/18 10,500,000 975,000 9,525,000
2001 Issue 3.50-5.50 8/1/01 2/15/21 23,500,000 1,315,000 22,185,000
2002 Issue 4.00-6.00 3/1/02 2/15/22 18,215,000 530,000 17,685,000
2003 Issue Refunding 3.50-4.25 12/5/02 2/1/14 11,160,000 - 11,160,000
2003A Issue 2.50-4.25 7/9/03 2/15/23 4,850,000 - 4,850,000
103,535,000$ 23,855,000$ 79,680,000$
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2003
City of College Station, Texas
56
The annual requirements to amortize debt outstanding as of September 30, 2003 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:
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 Sewer Funds.
General Obligation Bonds and Certificates
The City issues general obligation bonds to provide funds for the acquisition and construction
of major capital facilities. General obligation bonds are direct obligations and pledge the full
faith and credit of the City.
The City is required by bond convenants to create from ad valorem tax revenues a sinking
fund sufficient to pay the current interest and principal installments as they become due. In
addition to the sinking fund, there are a number of limitations and restrictions contained in the
various general obligation bond and certificate indentures. The City is in compliance with the
significant limitations and restrictions at September 30, 2003.
On July 9, 2003 the City issued $4.79 million in General Obligation Bonds with a true interest
cost of 3.75%. The proceeds from the sale of the bonds will be used for street projects, traffic
Governmental Activities
General Obligation Certificates of Obligation
Year Ended
September 30, Principal Interest Principal Interest
2004 2,875,000$ 2,074,199 2,805,000$ 1,506,320$
2005 2,640,000 1,904,989 2,940,000 1,360,454
2006 2,480,000 1,772,597 2,405,000 1,237,781
2007 2,590,000 1,648,470 2,075,000 1,140,797
2008 2,680,000 1,520,654 1,900,000 1,054,145
2009-2013 15,020,000 5,477,286 7,600,000 4,216,951
2014-2018 11,865,000 1,997,911 9,430,000 2,081,466
2019-2023 3,020,000 281,700 3,370,000 190,765
43,170,000$ 16,677,806$ 32,525,000$ 12,788,679$
Business-Type Activities
Electric Water Sewer
Year Ended
September 30, Principal Interest Principal Interest Principal Interest
2004 1,053,250$ 785,373$ 1,157,068$ 1,276,969$ 1,814,682$ 1,698,164$
2005 1,256,500 722,089 1,258,700 1,224,548 1,894,800 1,596,642
2006 1,269,000 673,697 1,309,300 1,167,298 1,941,700 1,493,537
2007 1,064,750 628,524 1,182,000 1,112,451 1,898,250 1,395,787
2008 1,082,250 587,329 1,242,850 1,059,629 1,949,900 1,306,178
2009-2013 5,689,250 2,234,762 7,213,000 4,305,735 10,577,750 5,006,596
2014-2018 4,325,250 1,075,432 8,799,100 2,344,115 9,360,650 2,307,650
2019-2023 2,982,500 317,690 5,025,850 449,017 4,331,650 384,943
18,722,750$ 7,024,896$ 27,187,868$ 12,939,762$ 33,769,382$ 15,189,497$
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2003
City of College Station, Texas
57
management projects, drainage projects, a new fire station, city facilities, and to pay the costs
incurred in connection with the issuance of the bonds.
On December 5, 2002 the City issued $1 million in Certificates of Obligation for the purchase
of equipment and to pay the costs of the debt issuance. The true interest rate of this debt is
3.31%. The City also issued $780,000 in Certificates of Obligation on July 9, 2003, the
proceeds of which are to be used for streets projects and for the payment of costs incurred in
connection with the debt issuance. The true interest rate of this debt is 3.83%.
Revenue Bonds
Utility system revenue bonds are secured by the net revenues of the Electric, Water, and
Sewer 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 to an
amount equal to the average annual principal and interest requirements of all outstanding
bonds secured by the net revenues of the system.
On July 9, 2003 the City issued $4.85 million in utility revenue bonds with a true interest cost
of 3.79%. Proceeds from the sale of the bonds will be used for electric, water and sewer
system improvements and for payment of the costs incurred in connection with the issuance
of the bonds.
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,
2003, the City is not obligated to pay any future rebates.
Defeasance
On December 5, 2002 the City issued $11.16 million in revenue refunding bonds with an
average interest rate of 4.02% to refund $10.75 million of Series 1993, 1993 Refunding, and
1994 with an average interest rate of 5.93%. As a result of this refunding, the City will reduce
its total debt service payments over the next 6 years by approximately $885,000 and will
obtain an economic gain (difference between the present values of the debt service
payments on the old and new debt) of $720,738. The proceeds from the issuance of the
bonds were used to purchase U.S. Government securities that were placed in an irrevocable
trust with an escrow agent to provide debt service payments on the bonds being refunded.
As a result, the refunded bonds are considered to be defeased, and the liability has been
removed from the business-type activities column of the City's financial statements.
In prior years, the city defeased certain revenue refunding bonds totaling $50,330,000 and
certain general obligation bonds and certificates of obligation totaling $18,392,126 by placing
the proceeds of the refunding bonds in an irrevocable trust to provide for all future debt
service on the refunded bonds. Accordingly, the trust account assets and the liability for the
defeased bonds are not included in the City's financial statements.
At September 30, 2003, the outstanding principal balance of the defeased revenue refunding
bonds was $1,400,000 and the outstanding principal balance of the defeased general
obligation bonds and certificates of obligation was $4,655,000.
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2003
City of College Station, Texas
58
The assets, liabilities, and financial transactions of all of these trust accounts and the liability
for refunded (defeased) bonds are not reflected in the financial statements of the City.
The tables below reflect refunded debt outstanding at September 30, 2003 and net of any
amounts to be paid or retired by the trustee on October 1, 2003:
H. Reservations/Designations of Fund Balances and Net Assets
Fund balances for governmental activities have been reserved or designated at September
30, 2003 as follows:
Reserved Designated
Governmental Activities:
General Fund:
Reserved for Encumbrances 1,305,936$ -$
Reserved for Inventory 54,825 -
Reserved for Police Seizure 15,402 -
Reserved for Court Technology 195,731 -
Reserved for Court Security 138,053 -
Reserved for Court Efficiency Improvements 18,347 -
Debt Service:
Reserved for Bond Debt Service 1,636,307 -
Streets Projects:
Reserved for Encumbrances 5,531,771 -
Reserved for Capital Projects 15,208,243 -
Other Governmental Funds:
Reserved for Encumbrances 3,684,226 -
Reserved for Capital Projects 14,175,871 -
Reserved for Endowment 883,476 -
Designated for Convention Center - 982,237
Total 42,848,188$ 982,237$
Refunded in Year Ended September 30, 2003
Utility System Revenue & Refunding Bonds, Series 1993 $2,500,000
Utility System Revenue Bonds, Series 1994 8,250,000
$10,750,000
Refunded in Prior Years
Utility System Revenue Bonds, Series 1990 $1,400,000
General Obligation Bonds, Series 1984 450,000
General Obligation Bonds, Series 1989 450,000
General Obligation & Refunding Bonds, Series 1991 1,425,000
General Obligation Refunding Bonds, Series 1996 2,330,000
$6,055,000
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2003
City of College Station, Texas
59
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 47.77 cents per $100 of assessed
valuation for the year ended September 30, 2003. 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 insured by the Texas Municipal League Intergovernmental Risk Pool, (TMLIRP)
for all of its real and personal property and mobile equipment. TMLIRP is funded by
calculated contributions form the City's operating funds and provides all of the claims
handling for these lines of coverage. The City carries a $100,000.00 deductible per
occurrence on its property insurance policy with TMLIRP. 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 State National Insurance Company that is A.M. Best rated A-VII.
The self-insured retention ("SIR") is $250,000.00 per claim. The claims are handled by a
third party claims administrator ("TPA") located in Houston, Texas.
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 State National Insurance Company, and the TPA handles all of the workers'
compensation claims. In the event of a simultaneous liability and workers' compensation
claim, only one SIR applies.
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2003
City of College Station, Texas
60
The City’s runoff claims for liability and worker compensation is estimated to be less than
$150,000.00. Historically, the City’s incurred but not reported claims are immaterial to its
approach to claim funding.
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 coverages 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 2003 and
2002 are as follows:
2003 2002
Unpaid Claims, October 1 $151,495 $412,677
Incurred Claims (including IBNR's) 826,091 846,134
Claims Paid (558,727) (1,107,316)
Unpaid Claims, September 30 $418,859 $151,495
C. Joint Venture
In May 1990, the City of College Station joined the City of Bryan in creating BVSWMA. The
primary purpose of BVSWMA is to achieve economy of scale savings for the participants
through joint ownership and use of regional waste management facilities. Each city holds a
50% interest and ownership in BVSWMA.
BVSWMA is governed by an Administrative Board of Trustees ("Board") comprised of the City
Manager and a staff person from each city; in addition, the Mayors of each city serve alternating
two-year terms on the Board. The Board has complete responsibility for the daily operating
activities of BVSWMA. After Board approval, the BVSWMA annual budget is presented for
approval by both cities as a part of their regular budget.
The City's share of BVSWMA's change in net assets for fiscal 2003 was $1,316,660.
The following is a summary of information from the audited financial statements of BVSWMA as
of September 30, 2003:
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2003
City of College Station, Texas
61
A copy of BVSWMA's separate audited financial statements may be obtained from the City's
Fiscal Services Department.
D. RETIREMENT PLAN
The City has adopted GASB Statement No. 25, Financial Reporting for Defined Benefit Pension
Plans and Note Disclosures for Defined Contribution Plans, and GASB Statement No. 27,
Accounting for Pensions by State and Local Government Employees. These statements require
the following disclosures:
Plan Description
The City provides pension benefits for all of its full-time employees through a nontraditional,
joint contributory, hybrid defined benefit plan in the state-wide Texas Municipal Retirement
System ("TMRS"), one of 774 administered by TMRS, an agent multiple-employer public
employee retirement system.
Benefits depend upon the sum of the employee's contributions to the plan, with interest, and the
City-financed monetary credits, with interest. At the date the plan began, the City granted
monetary credits for service rendered before the plan began of a theoretical amount equal to
two times what would have been contributed by the employee, with interest, prior to
2003
Assets:
Current Assets 12,157,013$
Capital Assets
(Net of $4,223,732 Accumulated Depreciation) 4,031,163
Deferred Landfill Permits
(Net of $355,233 Accumulated Amortization) 2,169,484
Total Assets 18,357,660
Liabilities:
Current Liabilities 586,729
Noncurrent Liabilities:
Accrued Post Closure Maintenance Costs 2,558,562
Total Liabilities 3,145,291
Net Assets:
Invested in Capital Assets 4,031,163
Unrestricted 11,181,206
Total Net Assets 15,212,369$
Program Revenues 5,383,382$
Program Expenses 3,068,038
Program Income 2,315,344
General Revenues 317,975
Change in Net Assets 2,633,319$
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2003
City of College Station, Texas
62
establishment of the plan. Monetary credits for service since the plan began are 200 percent of
the employee's accumulated contributions. In addition, the City can grant as often as annually
another type of monetary credit referred to as an updated service credit which is a theoretical
amount which, when added to the employee's accumulated contributions and the monetary
credits for service since the plan began, would be the total monetary credits and employee
contributions accumulated with interest if the current employee contribution rate and City
matching percent had always been in existence and if the employee's salary had always been
the average of his salary in the last three years that are one year before the effective date. At
retirement, the benefit is calculated as if the sum of the employee's accumulated contributions
with interest and the employer-financed monetary credits with interest were used to purchase
an annuity.
The plan provisions are adopted by the governing body of the City, within the options available
in the state statutes governing TMRS and within actuarial constraints also in the statutes. Plan
provisions for the City were as follows:
Members can retire at age 60 and above with 5 or more years of service or with 20 years of
service regardless of age. A member is vested after 5 years. The plan provisions are adopted
by the governing body of the City, within the options available in the state statutes governing
TMRS and within the actuarial constraints also in the statutes.
Contributions
Under the state law governing TMRS, the actuary annually determines the City contribution
rate. This rate consists of the normal cost contribution rate and the prior service cost
contribution rate, both of which are calculated to be a level percent of payroll from year to year.
The normal cost contribution rate finances the currently accruing monetary credits due to the
City matching percent, which are the obligation of the City as of an employee’s retirement date,
not at the time the employee’s contributions are made. The normal cost contribution rate is the
actuarially determined percent of payroll necessary to satisfy the obligation of the City to each
employee at the time his/her retirement becomes effective. The prior service contribution rate
amortizes the unfunded (overfunded) actuarial liability (asset) over the remainder of the plan’s
25-year amortization period. The unit credit actuarial cost method is used for determining the
City contribution rate. Both the employees and the City make contributions monthly. Since the
City needs to know its contribution rate in advance for budgetary purposes, there is one-year
delay between the actuarial valuation that is the basis for the rate and the calendar year when
the rate goes into effect. (i.e. December 31, 2002 valuation is effective for rates beginning
January 2004).
Deposit Rate: 6%
Matching Ratio (City to Employee): 2 to 1
Members Vested After: 5 years
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2003
City of College Station, Texas
63
The following is a schedule of actuarial liabilities and funding progress:
Actuarial assumptions as of the latest actuarial valuation are as follows:
Each of the 774 Municipalities have an annual, individual actuarial valuation performed. All
assumptions for the 12-31-02 valuations are contained in the 2002 TMRS Comprehensive
Annual Financial Report, a copy of which may be obtained by writing to P.O. Box 149153,
Austin, Texas 78714-9153.
Trend Information
Trend information gives an indication of the progress made in accumulating sufficient assets to
pay benefits when due. Applicable historical trend information concerning this plan is presented
on the next page:
Actuarial Cost Method: Unit Credit
Amortization Method: Level Percent of Payroll
Remaining Amortization Period: 25 Years--Open Period
Asset Valuation Method: Amortized Cost (to accurately
reflect the requirements of
GASB Statement No. 25,
paragraphs 36e and 138)
Investment Rate of Return: 8%
Projected Salary Increases: None
Includes Inflation at: None
Cost-of-Living Adjustments: None
Actuarial Valuation Date 12/31/2002
Actuarial Value of Assets 57,742,291$
Actuarial Accrued Liability 68,424,249$
Percentage Funded 84.4%
Unfunded (Overfunded) Actuarial Accrued Liability (UAAL) 10,681,958$
Annual Covered Payroll 27,784,120$
UAAL as a Percentage of Covered Payroll 38.4%
Net Pension Obligation (NPO) at Beginning of Period -$
Plus Annual Pension Cost:
Annual Required Contribution (ARC) 2,694,930
Less Contributions Made 2,694,930
NPO at the End of the Period -$
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2003
City of College Station, Texas
64
Unfunded Net Assets Available
Accrued Accrued as a Percent of
Actuarial Actuarial Actuarial Actuarial Pension Benefit
Valuation Date Value of Assets Liability (AAL) Liability (UAAL) Obligation
12/31/1993 19,345,662$ 22,717,522$ 3,371,860$ 85%
12/31/1994 21,696,264 26,863,012 4,893,748 82%
12/31/1995 26,004,146 31,518,807 5,514,661 83%
12/31/1996 30,332,645 36,941,994 6,609,349 82%
12/31/1997 34,566,021 42,100,099 7,534,078 82%
12/31/1998 38,759,223 45,574,205 6,814,982 85%
12/31/1999 43,010,803 49,987,308 6,976,505 86%
12/31/2000 47,880,750 55,811,761 7,931,011 86%
12/31/2001 52,927,528 61,856,550 8,929,022 86%
12/31/2002 57,742,291 68,424,249 10,681,958 84%
Fiscal Year Annual Required Contributions Net Pension
Ending Contribution (ARC) Made Obligation
1994 980,194$ 980,194$ -$
1995 1,028,586 1,028,586 -
1996 1,107,037 1,107,037 -
1997 1,299,737 1,299,737 -
1998 1,662,022 1,662,022 -
1999 1,965,749 1,965,749 -
2000 2,154,204 2,154,204 -
2001 2,272,217 2,272,217 -
2002 2,511,159 2,511,159 -
2003 2,694,930 2,694,930 -
Annual UAAL as a
Actuarial Covered Percentage of
Valuation Date Payroll Covered Payroll
12/31/1993 16,049,130$ 21%
12/31/1994 17,086,936 29%
12/31/1995 17,581,968 31%
12/31/1996 18,001,720 37%
12/31/1997 17,839,856 42%
12/31/1998 19,339,128 35%
12/31/1999 20,803,862 34%
12/31/2000 23,651,256 34%
12/31/2001 25,422,558 35%
12/31/2002 27,784,120 38%
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2003
City of College Station, Texas
65
Post Retirement/Employment Benefits
In addition to providing pension benefits, the City provides certain health care benefits for
retired employees as established by City Resolution No. 9-13-90-5.10, which was passed and
approved by the City Council on September 13, 1990. According to this resolution, employees
who retire while working for the City and their dependents are eligible to remain on the City’s
health plan as long as the employee makes monthly premium payments. During fiscal year
2003, twelve former employees were covered under this arrangement. 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 2003, 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. Terminated employees who qualify under COBRA pay premium costs for themselves and
dependents.
Expenditures are recognized as claims are submitted. COBRA participants are reimbursed at
the same levels as active employees. The amount of expenditures related to COBRA claims
for the year ended September 30, 2003 was not material. As of September 30, 2003 the City
has 10 COBRA participants.
E. Segment Information
The City issues revenue bonds to finance its electric, water, and sewer utility capital
improvements. Summary financial information for each fund with outstanding revenue
supported debt is presented below. The Electric Fund provides electric service to the City's
residents and includes transmission and distribution systems. The Water Fund provides
water services to the residents of the City and includes water production and distribution.
The Sewer Fund operates the City's wastewater collection, pumping, and treatment systems.
The Electric, Water, and Sewer funds are accounted for separately. However, their revenue
bonds carry a combined pledge of revenues from all three systems.
Segment information for the year ended September 30, 2003 is as follows:
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2003
City of College Station, Texas
66
Condensed Statement of Revenues, Expenses and Changes in Fund Net Assets
Electric Water Sewer
Fund Fund Fund
Charges for Services (Pledged Against Bonds) 46,565,597$ 8,597,167$ 8,883,482$
Operating Expense Before Depreciation (40,100,091) (3,845,040) (3,840,419)
Operating Income Before Depreciation
(Pledged Against Bonds) 6,465,506 4,752,127 5,043,063
Depreciation Expense (2,210,537) (1,031,967) (1,759,172)
Operating Income 4,254,969 3,720,160 3,283,891
Nonoperating Revenues (Expenses):
Investment Earnings 370,522 439,285 266,272
Intergovernmental Transfers In - - -
Intergovernmental Transfers Out (4,778,314) (911,412) (832,648)
Interest Expense (736,076) (1,332,355) (1,708,902)
Other, Net (87,399) 314,728 275,660
Capital Contributions 425,613 2,045,171 1,416,845
Change in Net Assets (550,685) 4,275,577 2,701,118
Beginning Net Assets 44,731,298 42,654,019 32,849,732
Ending Net Assets 44,180,613$ 46,929,596$ 35,550,850$
Condensed Statement of Net Assets
Electric Water Sewer
Fund Fund Fund
Assets:
Current Assets 11,622,880$ 12,954,132$ 4,684,571$
Due from Other Funds 200,000 - -
Restricted Assets 9,250,178 7,528,575 6,662,109
Deferred Charges 217,214 304,384 288,363
Capital Assets, Net of Accumulated
Depreciation 49,772,691 55,218,135 58,030,398
Total Assets 71,062,963 76,005,226 69,665,441
Liabilities:
Current Liabilities 7,159,343 1,364,131 153,493
Current Liabilities Payable from Restricted Assets 2,163,351 1,636,458 2,145,764
Noncurrent Liabilities 17,559,656 26,075,041 31,815,334
Total Liabilities 26,882,350 29,075,630 34,114,591
Net Assets:
Invested in Capital Assets, Net of Related Debt 38,920,619 35,087,170 28,896,009
Restricted for Debt Service 535,361 412,131 1,519,239
Unrestricted 4,724,633 11,430,295 5,135,602
Total Net Assets 44,180,613$ 46,929,596$ 35,550,850$
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2003
City of College Station, Texas
67
Condensed Statement of Cash Flows
Electric Water Sewer
Fund Fund Fund
Net Cash Provided (Used) by:
Operating Activities 8,559,787$ 5,997,205$ 5,145,087$
Noncapital Financing Activities (4,778,314) (911,412) (832,648)
Capital and Related Financing Activities (6,112,389) (6,495,197) (6,181,983)
Investing Activities (659,036) (1,890,225) (492,473)
Net Decrease (2,989,952) (3,299,629) (2,362,017)
Beginning Cash and Cash Equivalents 8,329,825 10,894,499 6,453,467
Ending Cash and Cash Equivalents 5,339,873$ 7,594,870$ 4,091,450$
F. Deferred Compensation Plan
The City offers its employees a deferred compensation plan created in accordance with
Internal Revenue Code ("IRC") 457. The plan, as amended, is available to all employees
and permits them to defer a portion of their salary until future years. The plan funds are not
available to employees until termination, retirement, death, or emergency.
All amounts of compensation deferred under the plan (until paid or made available to the
employee or other beneficiary) were placed in trust for the exclusive benefit of the
participants and the beneficiaries. This action is in accordance with changes made to IRC
Section 457. 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.
G. Commitments and Contingencies
Construction Commitments
The City has active construction projects as of September 30, 2003. At year-end, the
construction commitments with contractors for specific projects were as follows:
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2003
City of College Station, Texas
68
Remaining
Project Name Spent to Date Commitment
Water Well #6 and Water Line 1,490,039$ 619,854$
University Drive Sidewalk Project 49,307 33,778
Copperfield Parkway Extension 646,310 1,269,006
Carter Creek Lift Pump 8,275 282,125
Traffic Signalization 63,471 243,924
Pebble Creek Parkway Rehab - 90,212
Lick Creek Park Site Development 302,062 121,453
Miller Park Playground Improvements - 88,899
Longmire Drive Extension 255,956 62,074
Anderson Street Sidewalks 27,558 151,397
George Bush Drive East Widening 406,728 892,822
Wolf Pen Creek Lower Trails Phase I 1,042,971 157,978
Wolf Pen Creek Marquee 17,848 88,253
Park Place Water Improvements 2,820,144 171,708
7,130,669$ 4,273,483$
H. Bonds Available for Sale
Authorized general obligation bonds available for future issue are as follows:
Year Unissued
Authorized Amount
Public Buildings 1984 700,000$
Street Improvements 1984 500,000
Drainage Improvements 1998 855,000
Total 2,055,000$
I. Revenue Bond Coverage
All the net revenues of the Electric, Water, and Sewer 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.
CITY OF COLLEGE STATION, TEXAS
Schedule of Funding Progress
Texas Municipal Retirement System
Last Ten Fiscal Years
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]
12/31/1994 19,345,662$ 22,717,522$ 3,371,860$ 85.2% 16,049,130$ 21.0%
12/31/1995 21,696,264 26,863,012 5,166,748 80.8% 17,086,936 30.2%
12/31/1996 26,004,146 31,518,807 5,514,661 82.5% 17,581,968 31.4%
12/31/1997 30,332,645 36,941,994 6,609,349 82.1% 18,001,720 36.7%
12/31/1998 34,566,021 42,100,099 7,534,078 82.1% 17,839,856 42.2%
12/31/1999 38,759,223 45,574,205 6,814,982 85.0% 19,339,128 35.2%
12/31/2000 43,010,803 49,987,308 6,976,505 86.0% 20,803,862 33.5%
12/31/2001 47,880,750 55,811,761 7,931,011 85.8% 23,651,256 33.5%
12/31/2002 52,927,528 61,856,550 8,929,022 85.6% 25,422,558 35.1%
12/31/2003 57,742,291 68,424,249 10,681,958 84.4% 27,784,120 38.4%
*Assets are stated at cost as of December 31 of the preceding year.
69
CITY OF COLLEGE STATION, TEXAS
Schedule of Revenues, Expenditures and Changes
in Fund Balance Budget and Actual (Budgetary Basis)
General Fund
For the Fiscal Year Ended September 30, 2003
Budget Actual
Variance Over
(Under)
Revenues
Taxes 20,981,161$ 20,995,505$ 14,344$
Licenses and Permits 860,600 1,012,960 152,360
Intergovernmental 507,595 487,934 (19,661)
Charges for Services 1,974,824 2,403,316 428,492
Fines, Forfeits and Penalties 1,903,110 2,658,015 754,905
Investment Income 381,000 306,118 (74,882)
Rents and Royalties 113,860 112,993 (867)
Contributions 16,500 20,987 4,487
Reimbursed Expenditures 6,500 7,258 758
Other 153,650 186,352 32,702
Total Revenues 26,898,800 28,191,438 1,292,638
Expenditures
Current
General Government 3,560,143 3,476,247 (83,896)
Fiscal Services 2,379,060 2,312,629 (66,431)
Police 9,328,304 9,127,628 (200,676)
Fire 7,102,878 6,965,582 (137,296)
Development Services 1,950,999 1,933,490 (17,509)
Public Works 5,526,005 5,428,711 (97,294)
Parks and Recreation 6,343,466 6,271,038 (72,428)
Office of Technology and Information Services 3,173,794 3,001,222 (172,572)
Nondepartmental
Reimbursed Administrative (6,064,414) (6,013,085) 51,329
Contributions 196,998 422,498 225,500
Other 1,409,183 70,128 (1,339,055)
Capital Outlay 1,123,051 677,158 (445,893)
Total Expenditures 36,029,467 33,673,246 (2,356,221)
Excess (Deficiency) of Revenues Over (Under) Expenditures (9,130,667) (5,481,808) 3,648,859
Other Financing Sources (Uses)
Sale of General Fixed Assets 30,900 19,563 (11,337)
Operating Transfers In 6,740,200 6,741,826 1,626
Operating Transfer Out (106,861) (142,963) (36,102)
Total Other Financing Sources (Uses) 6,664,239 6,618,426 (45,813)
Net Change in Fund Balances (2,466,428) 1,136,618 3,603,046
Fund Balances, October 1 10,111,225 10,111,225 0
Fund Balances, September 30 7,644,797$ 11,247,843$ 3,603,046$
70
CITY OF COLLEGE STATION, TEXAS
Adjustments to General Fund Revenues and
Expenditures To Reconcile From
Budget Basis to GAAP Basis
For the Fiscal Year Ended September 30, 2003
Net change in fund balance - Budget Basis 1,136,618$
Revenues
Market Adjustment for Investments (24,994)
Other (7,961)
Expenditures
Bad Debt Expense (43,727)
Payroll Accrual, net (54,139)
Capitalize/Reclass Assets 163,706
Reclass Expense (26,707)
Other (3,686)
Net change in fund balance - GAAP Basis 1,139,110$
71
72
73
COMBINING FINANCIAL STATEMENTS
NONMAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
Special revenue funds are used to account for specific revenues that are legally restricted to expenditures for particular purposes.
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.
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.
Hotel/Motel Tax - to account for the receipt and expenditure of funds received by the City from the assessment of hotel and motel
occupancy tax. Usage of funds is restricted to the construction and maintenance of convention and civic facilities and to the
promotion of tourism and arts within the City.
Melrose Apartment 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 Melrose Apartments.
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.
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.
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.
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 improvements made with funds provided by a drainage utility fee and
proceeds from the sale of general obligation 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.
Parks 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.
PERMANENT FUNDS
Permanent Funds are used to report resources that are legally restricted to the extent that only earnings, not principal, may
be used for purposes that support the City's programs.
Cemetery Perpetual Care Fund - to account for principal trust amounts received and related interest income for the College
Station cemetery.
CITY OF COLLEGE STATION, TEXAS
Combining Balance Sheet
Nonmajor Governmental Funds
As of September 30, 2003
Special Revenue
Funds
Capital
Projects Funds
Permanent
Funds Total
Current Assets
Equity in Cash and Cash Equivalents 5,551,214$ 6,045,190$ 346,820$ 11,943,224$
Equity in Investments 8,474,088 9,228,155 529,430 18,231,673
Receivables
Accrued Interest 41,433 44,968 2,504 88,905
Grants 323,399 0 0 323,399
Accounts 80,381 123,003 8,593 211,977
Loans 9,356 0 0 9,356
Less Allowance for Uncollectible Accounts (2,363) (10,546) (6,064) (18,973)
Inventories 0 0 2,373 2,373
Total Assets 14,477,508$ 15,430,770$ 883,656$ 30,791,934$
Liabilities and Fund Balances
Liabilities
Accounts Payable 536,668$ 294,324$ 180$ 831,172$
Retainage Payable 117,294 16,572 0 133,866
Interfund Payable 200,000 0 0 200,000
Refundable Deposits 20,411 0 0 20,411
Accrued Liabilities (1,242) 244 0 (998)
Other Deferred Revenues 11,975 0 0 11,975
Total Liabilities 885,106 311,140 180 1,196,426
Fund Balances
Reserved
Reserved for Encumbrances 2,740,467 943,759 0 3,684,226
Reserved for Capital Projects 0 14,175,871 0 14,175,871
Reserved for Perpetual Care 0 0 883,476 883,476
Unreserved
Designated for
Subsequent Years Expenditures 982,237 0 0 982,237
Undesignated 9,869,698 0 0 9,869,698
Total Fund Balances 13,592,402 15,119,630 883,476 29,595,508
Total Liabilities and Fund Balances 14,477,508$ 15,430,770$ 883,656$ 30,791,934$
74
CITY OF COLLEGE STATION, TEXAS
Combining Balance Sheet
Nonmajor Governmental Funds - Special Revenue
As of September 30, 2003
Community
Development
Convention
Center
Hotel/Motel
Tax Parks Escrow
Wolf Pen
Creek Tax
Increment
Financing
District Total
Current Assets
Equity in Cash and Cash Equivalents 232,639$ 2,864,725$ 846,356$ 628,430$ 979,064$ 5,551,214$
Equity in Investments 355,130 4,373,085 1,291,987 959,317 1,494,569 8,474,088
Receivables
Accrued Interest 0 22,947 6,233 4,550 7,703 41,433
Grants 323,399 0 0 0 0 323,399
Accounts 1,200 0 79,181 0 0 80,381
Loans 9,356 0 0 0 0 9,356
Less Allowance for Uncollectible
Accounts (1,200) 0 (1,163) 0 0 (2,363)
Total Assets 920,524$ 7,260,757$ 2,222,594$ 1,592,297$ 2,481,336$ 14,477,508$
Liabilities and Fund Balances
Liabilities
Accounts Payable 181,815$ 259,127$ 85,151$ 0$ 10,575$ 536,668$
Retainage Payable 342 47,314 10,492 0 59,146 117,294
Interfund Payable 0 0 200,000 0 0 200,000
Refundable Deposits 0 0 20,411 0 0 20,411
Accrued Liabilities (1,290) 0 48 0 0 (1,242)
Other Deferred Revenues 8,016 0 3,959 0 0 11,975
Total Liabilities 188,883 306,441 320,061 0 69,721 885,106
Fund Balances
Reserved
Reserved for Encumbrances 268,551 2,093,840 182,945 54,403 140,728 2,740,467
Unreserved
Designated for Subsequent
Years Expenditures 0 982,237 0 0 0 982,237
Undesignated 463,090 3,878,239 1,719,588 1,537,894 2,270,887 9,869,698
Total Fund Balances 731,641 6,954,316 1,902,533 1,592,297 2,411,615 13,592,402
Total Liabilities and Fund Balances 920,524$ 7,260,757$ 2,222,594$ 1,592,297$ 2,481,336$ 14,477,508$
75
CITY OF COLLEGE STATION, TEXAS
Combining Balance Sheet
Nonmajor Governmental Funds - Capital Projects Funds
As of September 30, 2003
Business
Park
Drainage
Projects
General
Government
Projects
Parks
Projects Total
Current Assets
Equity in Cash and Cash Equivalents 912,867$ 3,022,410$ 1,964,371$ 145,542$ 6,045,190$
Equity in Investments 1,393,517 4,613,795 2,998,669 222,174 9,228,155
Receivables
Accrued Interest 6,691 22,084 14,758 1,435 44,968
Grants 0 0 0 0 0
Accounts 0 123,003 0 0 123,003
Less Allowance for Uncollectible
Accounts 0 (10,546) 0 0 (10,546)
Total Assets 2,313,075$ 7,770,746$ 4,977,798$ 369,151$ 15,430,770$
Liabilities and Fund Balances
Liabilities
Accounts Payable 4,565$ 1,224$ 251,642$ 36,893$ 294,324$
Retainage Payable 0 0 0 16,572 16,572
Accrued Liabilities 0 0 0 244 244
Total Liabilities 4,565 1,224 251,642 53,709 311,140
Fund Balances
Reserved
Reserved for Encumbrances 0 201,460 573,673 168,626 943,759
Reserved for Capital Projects 2,308,510 7,568,062 4,152,483 146,816 14,175,871
Total Fund Balances 2,308,510 7,769,522 4,726,156 315,442 15,119,630
Total Liabilities and Fund Balances 2,313,075$ 7,770,746$ 4,977,798$ 369,151$ 15,430,770$
76
CITY OF COLLEGE STATION, TEXAS
Balance Sheet
Nonmajor Governmental Fund - Permanent Fund
Cemetery Perpetual Care Fund
As of September 30, 2003
Current Assets
Equity in Cash and Cash Equivalents 346,820$
Equity in Investments 529,430
Receivables
Accrued Interest 2,504
Accounts 8,593
Allowance for Uncollectible Accounts (6,064)
Inventories 2,373
Total Assets 883,656$
Liabilities and Fund Balances
Liabilities
Accounts Payable 180$
Total Liabilities 180
Fund Balances
Reserved
Reserved for Perpetual Care 883,476
Total Fund Balances 883,476
Total Liabilities and Fund Balances 883,656$
77
CITY OF COLLEGE STATION, TEXAS
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
For the Fiscal Year Ended September 30, 2003
Special
Revenue Funds
Capital Projects
Funds
Permanent
Funds Total
Revenues
Taxes 2,637,773$ 0$ 0$ 2,637,773$
Charges for Services 18,400 62,536 125,804 206,740
Intergovernmental 1,446,747 7,802 0 1,454,549
Special Assessment 0 1,035,023 0 1,035,023
Fines, Forfeits and Penalties 3,489 0 0 3,489
Investment Income 340,842 328,004 19,409 688,255
Rents and Royalties 120,033 0 0 120,033
Loan Repayments 11,322 0 0 11,322
Contributions 309,000 37,621 1,434 348,055
Other 45,841 11,201 0 57,042
Total Revenues 4,933,447 1,482,187 146,647 6,562,281
Expenditures
Current
Community Development
Block Grant 222,169 0 0 222,169
Home Grant 408,779 0 0 408,779
Reimbursed Administrative 1,308,808 750,748 0 2,059,556
Contributions 1,128,400 0 0 1,128,400
Other 162,520 95,943 6,238 264,701
Capital Outlay 2,838,663 4,586,405 0 7,425,068
Debt Issuance Costs 0 34,758 0 34,758
Total Expenditures 6,069,339 5,467,854 6,238 11,543,431
Excess (Deficiency) of Revenues Over (Under)
Expenditures (1,135,892) (3,985,667) 140,409 (4,981,150)
Other Financing Sources (Uses)
Proceeds from Long-Term Debt Issuance 0 3,097,000 0 3,097,000
Sale of Capital Assets 0 11,130 0 11,130
Transfers In 1,692 109,882 0 111,574
Transfers Out (890,004) 0 0 (890,004)
Total Other Financing Sources (Uses) (888,312) 3,218,012 0 2,329,700
Net Change in Fund Balances (2,024,204) (767,655) 140,409 (2,651,450)
Fund Balances, October 1 15,616,606 15,887,285 743,067 32,246,958
Fund Balances, September 30 13,592,402$ 15,119,630$ 883,476$ 29,595,508$
78
CITY OF COLLEGE STATION, TEXAS
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds - Special Revenue Funds
For the Fiscal Year Ended September 30, 2003
Community
Development
Convention
Center
Hotel/Motel
Tax
Melrose
Apartment Tax
Increment
Financing
District
Parks
Escrow
Wolf Pen
Creek Tax
Increment
Financing
District Total
Revenues
Taxes 0$ 0$ 2,120,015$ 0$ 0$ 517,758$ 2,637,773$
Charges for Services 0 0 18,400 0 0 0 18,400
Intergovernmental 1,446,747 0 0 0 0 0 1,446,747
Fines, Forfeits and Penalties 0 0 3,489 0 0 0 3,489
Investment Income 0 192,499 50,315 524 34,183 63,321 340,842
Rents and Royalties 0 0 120,033 0 0 0 120,033
Loan Repayments 11,322 0 0 0 0 0 11,322
Contributions 0 0 0 0 309,000 0 309,000
Other 26,851 16,301 217 0 0 2,472 45,841
Total Revenues 1,484,920 208,800 2,312,469 524 343,183 583,551 4,933,447
Expenditures
Current
Community Development
Block Grant 222,169 0 0 0 0 0 222,169
Home Grant 408,779 0 0 0 0 0 408,779
Reimbursed Administrative 680,231 50,000 573,577 0 5,000 0 1,308,808
Contributions 0 0 1,128,400 0 0 0 1,128,400
Other 1,200 9 161,072 0 0 239 162,520
Capital Outlay 0 1,771,504 0 96,000 67,000 904,159 2,838,663
Total Expenditures 1,312,379 1,821,513 1,863,049 96,000 72,000 904,398 6,069,339
Excess (Deficiency) of Revenues Over
(Under) Expenditures 172,541 (1,612,713) 449,420 (95,476) 271,183 (320,847) (1,135,892)
Other Financing Sources (Uses)
Transfers In 0 0 0 652 1,040 0 1,692
Transfers Out (147,504) (250,000) 0 0 0 (492,500) (890,004)
Total Other Financing Sources (Uses) (147,504) (250,000) 0 652 1,040 (492,500) (888,312)
Net Change in Fund Balances 25,037 (1,862,713) 449,420 (94,824) 272,223 (813,347) (2,024,204)
Fund Balances, October 1 706,604 8,817,029 1,453,113 94,824 1,320,074 3,224,962 15,616,606
Fund Balances, September 30 731,641$ 6,954,316$ 1,902,533$ 0$ 1,592,297$ 2,411,615$ 13,592,402$
79
CITY OF COLLEGE STATION, TEXAS
Combining Statement of Revenues, Expenditures, and Changes in Fund Balance
Nonmajor Governmental Funds - Capital Projects Funds
For the Fiscal Year Ended September 30, 2003
Business Park
Drainage
Projects
General
Government
Projects
Parks
Projects Total
Revenues
Charges for Services 0$ 0$ 0$ 62,536$ 62,536$
Intergovernmental 0 0 10 7,792 7,802
Special Assessment 0 1,035,023 0 0 1,035,023
Investment Income 53,902 159,238 100,644 14,220 328,004
Contributions 0 0 37,621 0 37,621
Other 0 6,625 2,828 1,748 11,201
Total Revenues 53,902 1,200,886 141,103 86,296 1,482,187
Expenditures
Current
Reimbursed Administrative 50,000 620,748 60,000 20,000 750,748
Other 0 54,734 41,209 0 95,943
Capital Outlay 4,656 339,143 3,733,174 509,432 4,586,405
Debt Service
Issuance Costs 0 11,764 22,994 0 34,758
Total Expenditures 54,656 1,026,389 3,857,377 529,432 5,467,854
Excess (Deficiency) of Revenues Over
(Under) Expenditures (754) 174,497 (3,716,274) (443,136) (3,985,667)
Other Financing Sources
Proceeds from Long-Term Debt
Issuance 0 1,000,000 2,097,000 0 3,097,000
Sale of Capital Assets 0 0 10,530 600 11,130
Transfers In 0 34,432 75,450 0 109,882
Total Other Financing Sources 0 1,034,432 2,182,980 600 3,218,012
Net Change in Fund Balances (754) 1,208,929 (1,533,294) (442,536) (767,655)
Fund Balances, October 1 2,309,264 6,560,593 6,259,450 757,978 15,887,285
Fund Balances, September 30 2,308,510$ 7,769,522$ 4,726,156$ 315,442$ 15,119,630$
80
CITY OF COLLEGE STATION, TEXAS
Statement of Revenues, Expenditures, and Changes in Fund Balance
Nonmajor Governmental Fund - Permanent Fund
Cemetery Perpetual Care Fund
For the Fiscal Year Ended September 30, 2003
Revenues
Sale of Cemetery Lots 125,804$
Investment Income 19,409
Contributions 1,434
Other 0
Total Revenues 146,647
Expenditures
Other 6,238
Total Expenditures 6,238
Excess of Revenues Over
Expenditures 140,409
Fund Balance, October 1 743,067
Fund Balance, September 30 883,476$
81
82
83
COMBINING FINANCIAL STATEMENTS
NONMAJOR ENTERPRISE FUNDS
Sanitation - to account for all sanitation collection and disposal activities by the City for both residential
and commercial residents.
Cedar Creek Condominiums - to account for revenues and expenses related to the operation and
maintenance of the Cedar Creek Condominiums.
Northgate Parking Garage - to account for revenues and expenses related to the operation and
maintenance of the Northgate parking garage and parking lot.
City of College Station, Texas
Combining Statement of Net Assets
Nonmajor Enterprise Funds
As of September 30, 2003
Sanitation
Cedar Creek
Condominiums
Northgate Parking
Garage Total
Current Assets
Equity in Cash and Cash Equivalents 357,525$ 98,986$ 435,679$ 892,190$
Equity in Investments 545,771 151,105 665,076 1,361,952
Receivables, net 547,339 202,971 20,536 770,846
Inventories 34,285 0 0 34,285
Total Current Assets 1,484,920 453,062 1,121,291 3,059,273
Equity in Joint Venture 7,606,185 0 0 7,606,185
Capital Assets
Buildings 0 0 5,723,063 5,723,063
Machinery and Equipment 1,282,939 0 128,303 1,411,242
Accumulated Depreciation (1,250,848) 0 (333,944) (1,584,792)
Construction in Progress 0 0 0 0
Land 0 0 672,811 672,811
Total Capital Assets,
net of accumulated depreciation 32,091 0 6,190,233 6,222,324
Total Assets 9,123,196 453,062 7,311,524 16,887,782
Liabilities
Current Liabilities
Accounts Payable 99,001 142,980 6,644 248,625
Accrued Interest Payable 3,941 0 0 3,941
Interfund Payable 76,807 0 8,398 85,205
Total Current Liabilities 179,749 142,980 15,042 337,771
Current Liabilities Payable from Restricted Assets
Refundable Deposits 0 0 1,900 1,900
Total Current Liabilities Payable from Restricted
Assets 0 0 1,900 1,900
Noncurrent Liabilities
Accrued Vacation 30,581 0 474 31,055
Total Noncurrent Liabilities 30,581 0 474 31,055
Total Liabilities 210,330 142,980 17,416 370,726
Net Assets
Invested in Capital Assets, net of related debt 32,091 0 6,190,233 6,222,324
Unrestricted 8,880,775 310,082 1,103,875 10,294,732
Total Net Assets 8,912,866$ 310,082$ 7,294,108$ 16,517,056$
84
CITY OF COLLEGE STATION, TEXAS
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets
Nonmajor Enterprise Funds
For the Fiscal Year Ended September 30, 2003
Sanitation
Cedar Creek
Condominiums
Northgate Parking
Garage Total
Operating Revenues
Garbage Collection Fees 4,659,525$ 0$ 0$ 4,659,525$
Charges for Services 0 541,571 541,571
Other 10,022 0 0 10,022
Total Operating Revenues 4,669,547 0 541,571 5,211,118
Operating Expenses
Salaries and Benefits 1,382,654 0 160,309 1,542,963
Supplies 192,478 0 14,161 206,639
Maintenance 476,976 0 12,006 488,982
Purchased Professional Services 269,476 0 58,681 328,157
Purchased Property Services 1,155,103 0 42,597 1,197,700
Other Purchased Services 427,239 0 4,699 431,938
Reimbursed Administrative 416,871 0 0 416,871
Depreciation 11,250 0 165,878 177,128
Other 21,368 0 1,570 22,938
Total Operating Expenses 4,353,415 0 459,901 4,813,316
Operating Income 316,132 0 81,670 397,802
Nonoperating Revenues (Expenses)
Investment Income 24,455 2,502 21,762 48,719
Reimbursed Expenses 0 0 1,440 1,440
Earnings in Joint Venture 1,316,660 0 0 1,316,660
Other, Net (1,727) 4,341 2,555 5,169
Total Nonoperating Revenues (Expenses) 1,339,388 6,843 25,757 1,371,988
Income Before Transfers 1,655,520 6,843 107,427 1,769,790
Transfers Out (331,468) 0 (368) (331,836)
Change in Net Assets 1,324,052 6,843 107,059 1,437,954
Beginning Net Assets 7,588,814 303,239 7,187,049 15,079,102
Ending Net Assets 8,912,866$ 310,082$ 7,294,108$ 16,517,056$
85
CITY OF COLLEGE STATION, TEXAS
Combining Statement of Cash Flows
Nonmajor Enterprise Funds
For the Fiscal Year Ended September 30, 2003
Northgate
Cedar Creek Parking
Sanitation Condominiums Garage Total
Cash Flows from Operating Activities:
Cash Received from Customers 4,662,732$ 0$ 583,781$ 5,246,513$
Cash Payments to Suppliers for Goods and Services (2,954,747) 0 (126,537) (3,081,284)
Cash Payments to Employees for Services (1,375,988) 0 (159,876) (1,535,864)
Customer Deposits Returned 0 0 (50) (50)
Cash Received for Reimbursed Expenses 0 0 1,440 1,440
Cash Received for Miscellaneous Revenues 0 4,341 2,555 6,896
Cash Paid for Miscellaneous Expenses (1,728) (2,503) 0 (4,231)
Net Cash Provided by Operating Activities 330,269 1,838 301,313 633,420
Cash Flows from Noncapital Financing Activities:
Transfers Out to Other Funds (331,468) 0 (368) (331,836)
Net Cash Used by Noncapital Financing Activities (331,468) 0 (368) (331,836)
Cash Flows from Capital and Related Financing Activities:
Acquisition and Construction of Capital Assets (23,500) 0 0 (23,500)
Net Cash Used by Capital and Related Financing Activities (23,500) 0 0 (23,500)
Cash Flows from Investing Activities:
Purchase of Investments (2,124,693) (586,514) (2,430,641) (481,539)
Proceeds from Sale and Maturities of
Investment Securities 1,991,280 547,963 2,121,066 0
Investment Income 27,650 2,502 23,607 53,759
Net Cash Used by Investing Activities (105,763) (36,049) (285,968) (427,780)
Net Increase (Decrease) in Cash and Cash Equivalents (130,462) (34,211) 14,977 (149,696)
Cash and Cash Equivalents, Oct. 1 487,987 133,197 420,702 1,041,886
Cash and Cash Equivalents, Sept. 30 357,525$ 98,986$ 435,679$ 892,190$
Reconciliation of Operating Income to Net Cash
Provided by Operating Activities:
Operating Income 316,132$ 0$ 81,670$ 397,802$
Adjustment to Reconcile Operating Income to Net
Cash Provided by Operating Activities:
Depreciation, Bad Debt Expense, Inventory Loss 11,250 0 165,878 177,128
Provision for Uncollectible Accounts 827 0 1,520 2,347
Miscellaneous Nonoperating Revenues 0 4,341 3,995 8,336
Miscellaneous Nonoperating Expenses (1,728) (2,503) 0 (4,231)
Changes in Assets and Liabilities:
Change in Accounts Receivable (6,815) 0 42,210 35,395
Change in Inventory (31,469) 0 0 (31,469)
Change in Accounts Payable 45,218 0 5,415 50,633
Change in Accrued Liabilities (8,052) 0 635 (7,417)
Change in Refundable Deposits 0 0 (50) (50)
Change in Accrued Vacation 4,906 0 40 4,946
Total Adjustments 14,137 1,838 219,643 235,618
Net Cash Provided by Operating Activities 330,269$ 1,838$ 301,313$ 633,420$
86
87
SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (BUDGETARY BASIS)
Debt Service and Special Revenue Funds
CITY OF COLLEGE STATION, TEXAS
Debt Service Fund
Schedule of Revenues, Expenditures and
Changes in Fund Balance
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended September 30, 2003
Original
Budget
Revised
Budget Actual
Variance
Over
(Under)
Revenues
Taxes 7,689,713$ 7,689,713$ 7,645,600$ (44,113)$
Investment Income 100,000 100,000 85,295 (14,705)
Accrued Bond Interest 0 0 7,605 7,605
Other 0 0 67,311 67,311
Total Revenues 7,789,713 7,789,713 7,805,811 16,098
Expenditures
Debt Service
Principal Payments 5,820,000 5,820,000 5,820,000 0
Interest Payments 3,629,760 3,629,760 3,647,529 17,769
Fiscal Charges 6,000 6,000 12,500 6,500
Debt Issuance Cost 8,998 8,998 392 (8,606)
Total Expenditures 9,464,758 9,464,758 9,480,421 15,663
Deficiency of Revenues Under Expenditures (1,675,045) (1,675,045) (1,674,610) 435
Other Financing Sources
Transfers In 958,500 958,500 958,500 0
Total Other Financing Sources 958,500 958,500 958,500 0
Net Change in Fund Balances (716,545) (716,545) (716,110) 435
Fund Balances, October 1 2,376,726 2,376,726 2,376,726 0
Fund Balances, September 30 1,660,181$ 1,660,181$ 1,660,616$ 435$
88
CITY OF COLLEGE STATION, TEXAS
Adjustments to Debt Service Revenues
To Reconcile From Budget Basis to GAAP Basis
Debt Service Fund
For the Fiscal Year Ended September 30, 2003
Change in Fund Balance - Budget Basis (716,110)$
Revenues
Market Adjustment for Investments (2,796)
Change in Fund Balance - GAAP Basis (718,906)$
89
CITY OF COLLEGE STATION, TEXAS
Community Development Fund
Schedule of Revenues, Expenditures and
Changes in Fund Balance
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended September 30, 2003
Original
Budget
Revised
Budget Actual
Variance Over
(Under)
Revenues
Intergovernmental
Community Development Block Grant 2,418,262$ 2,418,262$ 844,425$ (1,573,837)$
Home Grant 1,636,420 1,636,420 602,322 (1,034,098)
Loan Repayments 0 0 10,751 10,751
Interest on Loans 0 0 571 571
Other 20,000 20,000 26,851 6,851
Total Revenues 4,074,682 4,074,682 1,484,920 (2,589,762)
Expenditures
Community Development Block Grant 2,438,262 2,438,262 222,169 (2,216,093)
Home Grant 1,636,420 1,636,420 408,779 (1,227,641)
Reimbursed Administrative 0 0 680,231 680,231
Affordable Housing 100,000 100,000 0 (100,000)
Total Expenditures 4,174,682 4,174,682 1,311,179 (2,863,503)
Excess (Deficiency) of Revenues Over (Under)
Expenditures (100,000) (100,000) 173,741 273,741
Other Financing Uses
Transfers Out 0 0 (147,504) (147,504)
Total Other Financing Uses 0 0 (147,504) (147,504)
Net Change in Fund Balances (100,000) (100,000) 26,237 126,237
Fund Balances, October 1 276,092 276,092 276,092 0
Fund Balances, September 30 176,092$ 176,092$ 302,329$ 126,237$
See reconciliation to GAAP basis on page 96.
90
CITY OF COLLEGE STATION, TEXAS
Convention Center Fund
Schedule of Revenues, Expenditures and
Changes in Fund Balance
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended September 30, 2003
Original
Budget
Revised
Budget Actual
Variance
Over (Under)
Revenues
Investment Income 400,000$ 400,000$ 207,994$ (192,006)$
Total Revenues 400,000 400,000 207,994 (192,006)
Expenditures
Current
Other Purchased Services 0 0 9 9
Reimbursed Administrative 50,000 50,000 50,000 0
Capital Outlay 9,170,000 9,170,000 1,762,103 (7,407,897)
Total Expenditures 9,220,000 9,220,000 1,812,112 (7,407,888)
Deficiency of Revenues Under Expenditures (8,820,000) (8,820,000) (1,604,118) 7,215,882
Other Financing Sources (Uses)
Transfers In 1,100,000 1,100,000 0 (1,100,000)
Transfers Out (230,000) (230,000) (250,000) (20,000)
Other 0 0 16,301 16,301
Total Other Financing Sources (Uses) 870,000 870,000 (233,699) (1,103,699)
Net Change in Fund Balances (7,950,000) (7,950,000) (1,837,817) 6,112,183
Fund Balances, October 1 8,796,349 8,796,349 8,796,349 0
Fund Balances, September 30 846,349$ 846,349$ 6,958,532$ 6,112,183$
See reconciliation to GAAP basis on page 96.
91
CITY OF COLLEGE STATION, TEXAS
Hotel/Motel Tax Fund
Schedule of Revenues, Expenditures and
Changes in Fund Balance
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended September 30, 2003
Original
Budget
Revised
Budget Actual
Variance
Over (Under)
Revenues
Taxes 1,926,009$ 2,015,000$ 2,120,015$ 105,015$
Charges for Services 25,341 17,520 18,400 880
Fines, Forfeits and Penalties 0 0 2,889 2,889
Investment Income 79,577 75,000 54,524 (20,476)
Rents and Royalties 114,668 114,800 120,033 5,233
Other 0 6,900 816 (6,084)
Total Revenues 2,145,595 2,229,220 2,316,677 87,457
Expenditures
Current
Development Services 196,062 416,000 54,247 (361,753)
Reimbursed Administrative 266,297 734,983 573,577 (161,406)
Contributions 1,140,400 1,128,400 1,128,400 0
Other 11,829 6,200 105,904 99,704
Debt Service
Principal Retirement 148,052 40,000 0 (40,000)
Contingency 0 25,000 0 (25,000)
Total Expenditures 1,762,640 2,350,583 1,862,128 (488,455)
Excess (Deficiency) of Revenues Over
(Under) Expenditures 382,955 (121,363) 454,549 575,912
Other Financing Uses
Transfers Out 0 (600,000) 0 600,000
Total Other Financing Uses 0 (600,000) 0 600,000
Net Change in Fund Balances 382,955 (721,363) 454,549 1,175,912
Fund Balances, October 1 1,353,645 1,353,645 1,353,645 0
Fund Balances, September 30 1,736,600$ 632,282$ 1,808,194$ 1,175,912$
See reconciliation to GAAP basis on page 96.
92
CITY OF COLLEGE STATION, TEXAS
Melrose Apartment Tax Increment Financing District Fund
Schedule of Revenues, Expenditures and
Changes in Fund Balance
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended September 30, 2003
Original
Budget
Revised
Budget Actual
Variance
Over
(Under)
Revenues
Investment Income 2,000$ 2,000$ 524$ (1,476)$
Total Revenues 2,000 2,000 524 (1,476)
Expenditures
Capital Outlay 96,000 96,000 96,000 0
Total Expenditures 96,000 96,000 96,000 0
Deficiency of Revenues Under
Expenditures (94,000) (94,000) (95,476) (1,476)
Other Financing Sources
Transfers In 0 0 652 652
Net Change in Fund Balances (94,000) (94,000) (94,824) (824)
Fund Balances, October 1 93,160 93,160 93,160 0
Fund Balances, September 30 (840)$ (840)$ (1,664)$ (824)$
See reconciliation to GAAP basis on page 96.
93
CITY OF COLLEGE STATION, TEXAS
Parks Escrow Fund
Schedule of Revenues, Expenditures and
Changes in Fund Balance
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended September 30, 2003
Original
Budget
Revised
Budget Actual
Variance
Over (Under)
Revenues
Investment Income 5,000$ 5,000$ 37,256$ 32,256$
Other 50,000 50,000 309,000 259,000
Total Revenues 55,000 55,000 346,256 291,256
Expenditures
Current
Reimbursed Administrative 5,000 5,000 5,000 0
Other 0 8,000 0 (8,000)
Capital Outlay 1,259,000 1,251,000 67,000 (1,184,000)
Total Expenditures 1,264,000 1,264,000 72,000 (1,192,000)
Excess (Deficiency) of Revenues Over (Under )
Expenditures (1,209,000) (1,209,000) 274,256 1,483,256
Other Financing Sources
Transfers In 0 0 1,040 1,040
Total Other Financing Sources 0 0 1,040 1,040
Net Change in Fund Balances (1,209,000) (1,209,000) 275,296 1,484,296
Fund Balances, October 1 1,319,858 1,319,858 1,319,858 0
Fund Balances, September 30 110,858$ 110,858$ 1,595,154$ 1,484,296$
See reconciliation to GAAP basis on page 96.
.
94
CITY OF COLLEGE STATION
Wolf Pen Creek Tax Increment Financing District Fund
Schedule of Revenues, Expenditures and
Changes in Fund Balance
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended September 30, 2003
Original
Budget
Revised
Budget Actual
Variance
Over (Under)
Revenues
Taxes 498,000$ 498,000$ 517,758$ 19,758$
Investment Income 60,000 60,000 68,523 8,523
Other 0 0 2,472 2,472
Total Revenues 558,000 558,000 588,753 30,753
Expenditures
Current
Parks and Recreation 700 700 241 (459)
Capital Outlay 1,910,000 1,910,000 879,425 (1,030,575)
Total Expenditures 1,910,700 1,910,700 879,666 (1,031,034)
Deficiency of Revenues Under Expenditures (1,352,700) (1,352,700) (290,913) 1,061,787
Other Financing Uses
Transfers Out (492,500) (492,500) (492,500) 0
Total Other Financing Uses (492,500) (492,500) (492,500) 0
Net Change in Fund Balances (1,845,200) (1,845,200) (783,413) 1,061,787
Fund Balances, October 1 3,231,563 3,231,563 3,231,563 0
Fund Balances, September 30 1,386,363$ 1,386,363$ 2,448,150$ 1,061,787$
See reconciliation to GAAP basis on page 96.
95
CITY OF COLLEGE STATION, TEXAS
Adjustments to Special Revenue Fund Revenues and
Expenditures to Reconcile from Budget Basis to GAAP Basis
For the Fiscal Year Ended September 30, 2003
Community
Development
Convention
Center
Hotel/Motel
Tax
Melrose
Apartment Tax
Increment
Financing
District
Parks
Escrow
Wolf Pen Creek
Tax Increment
Financing District
Change in Fund Balance - Budget Basis 26,237$ (1,837,817)$ 454,549$ (94,824)$ 275,296$ (783,413)$
Revenues:
Market Adjustment for Investments - (15,495) (4,208) - (3,073) (5,202)
Expenditures:
Bad Debt Expense (1,200) - (921) - -
Capitalized Salaries - (6,218) - - - (24,732)
Reclass Expense - (3,183) - - - -
Change in Fund Balance - GAAP Basis 25,037$ (1,862,713)$ 449,420$ (94,824)$ 272,223$ (813,347)$
96
97
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, the 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.
Print-Mail Services - to account for the activities related to the City’s printing and mailing operations.
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 Billing - to account for the billing and collection activities relating to the City’s electric, water, and sewer
utilities and residential and commercial garbage collection.
Workers' Compensation - to account for self-insurance activity relating to administration of the City's workers'
compensation plan.
CITY OF COLLEGE STATION, TEXAS
Internal Service Funds
Combining Statement of Net Assets
As of September 30, 2003
Communication
Services
Employee
Benefits
Equipment
Replacement
Fleet
Maintenance
Current Assets
Equity in Cash and Cash Equivalents 2,075$ 622,202$ 2,870,170$ 0$
Equity in Investments 5,227 949,809 4,381,397 0
Receivables
Accrued Interest (18) 4,173 20,502 (245)
Accounts 0 4,047 0 5,924
Other 00 00
Less Allowance for Uncollectible Accounts 0 (1,059) 0 0
Inventories 0 0 0 85,254
Prepaid Costs 0 0 0 0
Total Current Assets 7,284 1,579,172 7,272,069 90,933
Capital Assets
Buildings 0 0 0 746,575
Machinery and Equipment 1,207,944 0 17,526,180 208,820
Accumulated Depreciation (979,009) 0 (9,917,456) (390,252)
Total Capital Assets 228,935 0 7,608,724 565,143
Total Assets 236,219 1,579,172 14,880,793 656,076
Liabilities
Current Liabilities
Accounts Payable 20,196 53,373 35,900 70,246
Due to Other Funds 0 0 0 19,271
Claims Payable 0 0 0 0
Accrued Liabilities 9,617 0 0 17,628
Total Current Liabilities 29,813 53,373 35,900 107,145
Noncurrent Liabilities
Accrued Vacation 8,822 0 0 26,138
Total Noncurrent Liabilities 8,822 0 0 26,138
Total Liabilities 38,635 53,373 35,900 133,283
Net Assets
Invested in Capital Assets 228,935 0 7,608,724 565,143
Unreserved Retained Earnings (Deficits) (31,351) 1,525,799 7,236,169 (42,350)
Total Net Assets 197,584$ 1,525,799$ 14,844,893$ 522,793$
98
Print/Mail
Services
Property and
Casualty Unemployment Utility Billing
Workers'
Compensation Total
914$ 122,797$ 39,311$ 29,862$ 53,791$ 3,741,122$
1,395 187,454 60,010 45,585 82,113 5,712,990
(93) 988 287 166 499 26,259
0 132,344 0 18,154 0 160,469
0 0 0 8,945 0 8,945
0 (1,652) 0 (13,692) 0 (16,403)
28,979 0 0 0 0 114,233
11,848 0 0 0 24,000 35,848
43,043 441,931 99,608 89,020 160,403 9,783,463
0 0 0 0 0 746,575
145,918 0 0 1,516,017 0 20,604,879
(118,082) 0 0 (784,226) 0 (12,189,025)
27,836 0 0 731,791 0 9,162,429
70,879 441,931 99,608 820,811 160,403 18,945,892
33,195 27,942 0 7,541 3,348 251,741
0 0 0 0 0 19,271
0 240,131 0 0 178,728 418,859
6,966 0 0 32,635 0 66,846
40,161 268,073 0 40,176 182,076 756,717
5,466 0 0 41,415 0 81,841
5,466 0 0 41,415 0 81,841
45,627 268,073 0 81,591 182,076 838,558
27,836 0 0 731,791 0 9,162,429
(2,584) 173,858 99,608 7,429 (21,673) 8,944,905
25,252$ 173,858$ 99,608$ 739,220$ (21,673)$ 18,107,334$
99
CITY OF COLLEGE STATION, TEXAS
Internal Service Funds
Combining Statement of Revenues, Expenses
and Changes in Fund Net Assets
For the Fiscal Year Ended September 30, 2003
Communication
Services
Employee
Benefits
Equipment
Replacement
Fleet
Maintenance
Operating Revenues
Charges for Services 626,652$ 0$ 2,115,381$ 1,380,311$
Premiums 0 4,497,134 0 0
Other 00 00
Total Operating Revenues 626,652 4,497,134 2,115,381 1,380,311
Operating Expenses
Salaries and Benefits 314,308 0 0 629,453
Supplies 85,569 0 0 545,881
Maintenance 83,460 0 3,510 26,084
Purchased Professional Services 11,936 0 0 2,535
Purchased Property Services 11,375 0 0 16,203
Other Purchased Services 25,442 2,338 0 25,983
Claims 0 10,137 0 0
Administration Fees 0 49,424 0 0
Premiums 0 3,664,830 0 0
Reimbursed Administrative 85,000 54,949 0 137,177
Depreciation 100,012 0 2,538,411 24,183
Other 0 94 0 16,177
Total Operating Expenses 717,102 3,781,772 2,541,921 1,423,676
Operating Income (90,450) 715,362 (426,540) (43,365)
Nonoperating Revenues (Expenses)
Investment Income (709) 31,923 156,303 (1,311)
Reimbursed Expenses 0 423 21,582 364
Other, Net 1,500 18,806 83,868 781
Total Nonoperating Revenues (Expenses) 791 51,152 261,753 (166)
Income Before Transfers (89,659) 766,514 (164,787) (43,531)
Transfers
Transfers In 49,300 0 972,144 0
Transfers Out (1,363) 0 (216,000) (2,708)
Total Transfers 47,937 0 756,144 (2,708)
Change in Net Assets (41,722) 766,514 591,357 (46,239)
Beginning Net Assets 239,306 759,285 14,253,536 569,032
Ending Net Assets 197,584$ 1,525,799$ 14,844,893$ 522,793$
100
Print/Mail
Property and
Casualty Unemployment Utility Billing
Workers'
Compensation Total
376,337$ 0$ 0$ 1,925,001$ 0$ 6,423,682$
0 395,175 0 0 348,632 5,240,941
0 0 0 141,320 6,862 148,182
376,337 395,175 0 2,066,321 355,494 11,812,805
189,142 0 0 1,140,133 0 2,273,036
108,667 0 0 54,502 0 794,619
10,517 0 0 39,718 0 163,289
107 16,880 0 23,415 8,880 63,753
40,301 0 0 32,439 0 100,318
9,789 0 0 287,217 0 350,769
0 478,240 15,439 0 473,770 977,586
0 5,218 0 0 1,765 56,407
0 159,261 0 0 102,500 3,926,591
47,327 131,990 0 595,212 131,991 1,183,646
9,210 0 0 51,656 0 2,723,472
0 12,785 0 7,837 0 36,893
415,060 804,374 15,439 2,232,129 718,906 12,650,379
(38,723) (409,199) (15,439) (165,808) (363,412) (837,574)
(785) 7,151 2,416 2,102 1,915 199,005
0 41,117 0 0 0 63,486
0 0 0 115 (11,651) 93,419
(785) 48,268 2,416 2,217 (9,736) 355,910
(39,508) (360,931) (13,023) (163,591) (373,148) (481,664)
0 22,500 0 0 115,638 1,159,582
(255) 0 0 (2,142) 0 (222,468)
(255) 22,500 0 (2,142) 115,638 937,114
(39,763) (338,431) (13,023) (165,733) (257,510) 455,450
65,015 512,289 112,631 904,953 235,837 17,651,884
25,252$ 173,858$ 99,608$ 739,220$ (21,673)$ 18,107,334$
101
CITY OF COLLEGE STATION, TEXAS
Internal Service Funds
Combining Statement of Cash Flows
For the Fiscal Year Ended September 30, 2003
Communication Employee Equipment Fleet Print/Mail
Services Benefits Replacement Maintenance Services
Cash Flows from Operating Activities
Cash Received from Customers 626,652$ 4,497,134$ 2,115,381$ 1,382,963$ 376,337$
Cash Payments to Suppliers for Goods and Services (291,068) (4,133,491) 5,272 (750,351) (193,083)
Cash Payments to Employees for Services (312,645) 0 0 (624,737) (189,131)
Cash Received for Reimbursed Expenses 0 423 21,582 364 0
Cash Received for Miscellaneous Revenues 0 18,806 42,770 781 0
Cash Received from Other Funds 0 (1,418) 69,503 (5,924) 0
Cash Paid to Other Funds (51,419) 0 0 1,186 0
Cash Paid for Miscellaneous Expenses 0 0 (18,713) 0 0
Net Cash Provided (Used) by Operating Activities (28,480) 381,454 2,235,795 4,282 (5,877)
Cash Flows from Noncapital Financing Activities:
Transfers In from Other Funds 50,800 0 972,144 0 0
Transfers Out to Other Funds (1,363) 0 (216,000) (2,708) (255)
Net Cash Provided (Used) by Noncapital Financing Activities 49,437 0 756,144 (2,708) (255)
Cash Flows from Capital and Related Financing Activities:
Acquisition of Capital Assets (12,524) 0 (2,523,003) 0 (4,628)
Proceeds from Sale of Assets 0 0 225,400 0 0
Net Cash Used by Capital and Related Financing Activities:(12,524) 0 (2,297,603) 0 (4,628)
Cash Flows from Investing Activities:
Purchase of Investments (16,091) (3,495,242) (16,642,349) 0 (11,119)
Proceeds from Sale and Maturities of
Investment Securities 10,863 3,075,382 15,186,935 0 16,053
Investment Income (1,130) 33,463 168,621 (1,574) (750)
Net Cash Provided (Used) by Investing Activities: (6,358) (386,397) (1,286,793) (1,574) 4,184
Net Increase (Decrease) in Cash and Cash Equivalents 2,075 (4,943) (592,457) 0 (6,576)
Cash and Cash Equivalents, Oct. 1 0 627,145 3,462,627 0 7,490
Cash and Cash Equivalents, Sept. 30 2,075$ 622,202$ 2,870,170$ -$ 914$
Reconciliation of Operating Income (Loss) to Net Cash
Provided (Used) by Operating Activities:
Operating Income (Loss) (90,450)$ 715,362$ (426,540)$ (43,365)$ (38,723)$
Adjustment to Reconcile Operating Income (Loss) to Net
Cash Provided (Used) by Operating Activities:
Depreciation 100,012 0 2,538,411 24,183 9,210
Miscellaneous Nonoperating Revenues 0 19,229 64,352 1,145 0
Miscellaneous Nonoperating Expenses 0 0 (18,713) 0 0
Change in Assets and Liabilities:
Change in Accounts Receivable 0 1,059 0 2,652 0
Change in Due from Other Funds 0 (1,418) 69,503 (5,924) 0
Change in Inventories 0 0 0 (5,283) (434)
Change in Prepaid Costs 0 0 0 0 2,363
Change in Accounts Payable 14,057 (352,778) 8,782 27,309 22,784
Change in Due to Other Funds (51,419) 0 0 1,186 0
Change in Claims Payable 0 0 0 0 0
Change in Accrued Liabilities (1,169) 0 0 (1,332) (66)
Change in Accrued Vacation 489 0 0 3,711 (1,011)
Total Adjustments 61,970 (333,908) 2,662,335 47,647 32,846
Net Cash Provided (Used) by Operating Activities (28,480)$ 381,454$ 2,235,795$ 4,282$ (5,877)$
102
Property and Utility Workers'
Casualty Unemployment Billing Compensation Total
401,460$ 0$ 2,077,123$ 355,494$ 11,832,544$
(713,413) (20,410) (1,038,331) (604,433) (7,739,308)
0 0 (1,142,852) 0 (2,269,365)
41,117 0 0 0 63,486
0 0 115 0 62,472
0 0 0 0 62,161
0 0 0 0 (50,233)
0 0 (7,837) (11,651) (38,201)
(270,836) (20,410) (111,782) (260,590) 1,923,556
22,500 0 0 115,638 1,161,082
0 0 (2,142) 0 (222,468)
22,500 0 (2,142) 115,638 938,614
0 0 (8,945) 0 (2,549,100)
0 0 0 0 225,400
0 0 (8,945) 0 (2,323,700)
(848,566) (242,505) (236,920) (389,979) (21,882,771)
912,921 236,076 280,916 435,117 20,154,263
8,786 2,742 2,725 3,017 215,900
73,141 (3,687) 46,721 48,155 (1,512,608)
(175,195) (24,097) (76,148) (96,797) (974,138)
297,992 63,408 106,010 150,588 4,715,260
122,797$ 39,311$ 29,862$ 53,791$ 3,741,122$
(409,199)$ (15,439)$ (165,808)$ (363,412)$ (837,574)$
0 0 51,656 0 2,723,472
41,117 0 115 0 125,958
0 (32,646) (11,651) (63,010)
7,937 0 41,627 0 53,275
0 0 0 0 62,161
0 0 0 0 (5,717)
0 0 0 30,000 32,363
(96,928) (4,971) (811) 3,348 (379,208)
0 0 0 0 (50,233)
186,237 0 0 81,125 267,362
0 0 (267) 0 (2,834)
0 0 (5,648) 0 (2,459)
138,363 (4,971) 54,026 102,822 2,761,130
(270,836)$ (20,410)$ (111,782)$ (260,590)$ 1,923,556$
103
104
105
CAPITAL ASSETS USED IN THE OPERATION
OF GOVERNMENTAL FUNDS
106
Governmental funds capital assets:
Building and Building Improvements 21,905,822$
Improvements 13,658,683
Machinery and Equipment 7,080,970
Infrastructure 69,099,103
Construction in Progress 13,843,104
Land 19,714,327
145,302,009$
Investments in governmental funds capital assets by source:
Capital Projects 108,604,464$
General Fund Revenues 6,584,066
Special Revenue Funds 3,980,769
Contributions 26,132,710
145,302,009$
This schedule presents only the capital asset balances related to governmental funds.
Accordingly, the capital assets reported in internal service funds are excluded from the above
amounts. Generally, the capital assets of internal service funds are included as governmental
activities in the statement of net assets.
CITY OF COLLEGE STATION, TEXAS
CAPITAL ASSETS USED IN THE OPERATIONS OF GOVERNMENTAL FUNDS
SCHEDULE BY SOURCE
As of September 30, 2003
107
City of College Station
Capital Assets Used in the Operation of Governmental Funds
Schedule by Function and Activity
For the Year Ended September 30, 2003
Improvements Machine/Tool
Function and Activity Total Buildings Land Other than Bldg Equipment Infrastructure
Development Services:
Development Services Administration 18,670$ -$ -$ -$ 18,670$ -$
Engineering 61,420 - - - 61,420 -
Planning 40,014 - - - 40,014 -
120,104 - - - 120,104 -
Fire:
Emergency Medical Services 183,109 - - - 183,109 -
Fire Administration 38,307 - - - 38,307 -
Fire Prevention 30,876 - - - 30,876 -
Fire Suppression 671,459 - - - 671,459 -
923,751 - - - 923,751 -
Fiscal Services:
Accounting 13,511 - - - 13,511 -
Fiscal Administration 40,113 - - - 40,113 -
Municipal Court 241,609 - - - 241,609 -
Purchasing 5,700 - - - 5,700 -
Risk Management - - - - - -
300,933 - - - 300,933 -
General Government:
Budget/Research 11,085 - - - 11,085 -
Community Development 114,315 - 20,840 - 93,475 -
City Manager 14,993 - - - 14,993 -
City Programs 1,437,504 - 1,437,504 - - -
City Secretary 10,324 - - - 10,324 -
Economic Development 20,568 - 14,470 - 6,098 -
Human Resources 7,452 - - - 7,452 -
Legal 9,871 - - - 9,871 -
Capital Projects 15,287,007 - 14,786,656 - - 500,351
Public Relations 9,714 - - - 9,714 -
16,922,833 - 16,259,470 - 163,012 500,351
Office of Technology and Information Services:
Geographic Information Systems 134,575 - - - 134,575 -
Library Services 511,481 - 40,000 - 471,481 -
Management Information Systems 1,158,268 - - - 1,158,268 -
OTIS Administration 72,208 - - - 72,208 -
1,876,532 - 40,000 - 1,836,532 -
Police:
Criminal Investigation 67,828 - - - 67,828 -
Communications/Jail 87,453 - - - 87,453 -
Police Administration 12,973 - - - 12,973 -
Professional Standards - - - - - -
Quartermaster 3,890 - - - 3,890 -
Special Services - - - - - -
Technical Services - - - - - -
Uniform Patrol 349,991 - - - 349,991 -
522,135 - - - 522,135 -
Parks and Recreation:
Forestry 67,365 - - - 67,365 -
Parks Administration 79,779 - - 36,599 43,180 -
Parks Maintenance/Operations 285,627 - - 45,021 240,606 -
Capital Projects 14,239,421 707,701 634,579 12,897,141 - -
Recreation 42,102 - - - 42,102 -
Special Facilities 43,430 - - - 43,430 -
14,757,724 707,701 634,579 12,978,761 436,683 -
108
City of College Station
Capital Assets Used in the Operation of Governmental Funds
Schedule by Function and Activity
For the Year Ended September 30, 2003
Improvements Machine/Tool
Function and Activity Total Buildings Land Other than Bldg Equipment Infrastructure
Public Works:
Drainage Maintenance 20,258 - - - 20,258 -
Engineering 71,135 - - - 71,135 -
Facilities Maintenance 23,715 5,255 - - 18,460 -
Public Works Administration 24,641 - - - 24,641 -
Capital Projects 4,657,971 - 857,750 - - 3,800,221
Streets Maintenance 356,325 - - - 356,325 -
Traffic Signs/Markings - - - - - -
Traffic Signals - - - - - -
5,154,045 5,255 857,750 - 490,819 3,800,221
Other:
Non-departmental 90,880,848 21,192,866 1,922,528 679,922 2,287,001 64,798,531
90,880,848 21,192,866 1,922,528 679,922 2,287,001 64,798,531
Construction in Progress 13,843,104 2,766,689 - 543,959 936,476 9,595,980
13,843,104 2,766,689 - 543,959 936,476 9,595,980
Total governmental funds capital assets 145,302,009$ 24,672,511$ 19,714,327$ 14,202,642$ 8,017,446$ 78,695,083$
This schedule presents only the capital asset balances related to governmental funds.
Accordingly, the capital assets reported in internal service funds are excluded from the above
amounts. Generally, the capital assets of internal service funds are included as governmental
activities in the statement of net assets.
109
City of College Station
Capital Assets Used in the Operation of Governmental Funds
Schedule of Changes by Function and Activity
For the Year Ended September 30, 2003
Governmental Funds Governmental Funds
Capital Assets Capital Assets
Function and Activity 9/30/02 Additions Retirements 9/30/03
Development Services:
Development Services Administration 18,670$ -$ -$ 18,670$
Engineering 61,420 - - 61,420
Planning 40,014 - - 40,014
120,104 - - 120,104
Fire:
Emergency Medical Services 183,109 - - 183,109
Fire Administration 38,307 - - 38,307
Fire Prevention 30,876 - - 30,876
Fire Suppression 656,557 14,902 - 671,459
908,849 14,902 - 923,751
Fiscal Services:
Accounting 13,511 - - 13,511
Fiscal Administration 40,113 - - 40,113
Municipal Court 216,524 25,085 - 241,609
Purchasing 5,700 - - 5,700
Risk Management - - - -
275,848 25,085 - 300,933
General Government:
Budget/Research 11,085 - - 11,085
Community Development 93,475 20,840 - 114,315
City Manager 14,993 - - 14,993
City Programs 1,437,504 - - 1,437,504
City Secretary 10,324 - - 10,324
Economic Development 20,568 - - 20,568
Human Resources 7,452 - - 7,452
Legal 9,871 - - 9,871
Capital Projects 14,786,656 500,351 - 15,287,007
Public Relations 9,714 - - 9,714
16,401,642 521,191 - 16,922,833
Office of Technology and Information Services:
Geographic Information Systems 134,575 - - 134,575
Library Services 471,481 40,000 - 511,481
Management Information Systems 1,135,993 22,275 - 1,158,268
OTIS Administration 72,208 - - 72,208
1,814,257 62,275 - 1,876,532
Police:
Criminal Investigation 60,363 7,465 - 67,828
Communications/Jail 56,242 31,211 - 87,453
Police Administration 12,973 - - 12,973
Professional Standards - - - -
Quartermaster 3,890 - - 3,890
Special Services - - - -
Technical Services - - - -
Uniform Patrol 349,991 - - 349,991
483,459 38,676 - 522,135
110
City of College Station
Capital Assets Used in the Operation of Governmental Funds
Schedule of Changes by Function and Activity
For the Year Ended September 30, 2003
Governmental Funds Governmental Funds
Capital Assets Capital Assets
Function and Activity 9/30/02 Additions Retirements 9/30/03
Parks and Recreation:
Forestry 67,365 - - 67,365
Parks Administration 79,779 - - 79,779
Parks Maintenance/Operations 265,684 19,943 - 285,627
Capital Projects 10,427,686 3,811,735 - 14,239,421
Recreation 42,102 - - 42,102
Special Facilities 43,430 - - 43,430
10,926,046 3,831,678 - 14,757,724
Public Works:
Drainage Maintenance 20,258 - - 20,258
Engineering 33,402 37,733 - 71,135
Facilities Maintenance 23,715 - - 23,715
Public Works Administration 24,641 - - 24,641
Capital Projects - 4,657,971 - 4,657,971
Streets Maintenance 356,325 - - 356,325
Traffic Signs/Markings - - - -
Traffic Signals - - - -
458,341 4,695,704 - 5,154,045
Other:
Non-departmental 80,690,334 10,378,327 (187,813) 90,880,848
80,690,334 10,378,327 (187,813) 90,880,848
Construction in Progress 18,000,215 11,227,758 (15,384,869) 13,843,104
Total governmental funds capital assets 130,079,095$ 30,795,596$ (15,572,682)$ 145,302,009$
This schedule presents only the capital asset balances related to governmental funds.
Accordingly, the capital assets reported in internal service funds are excluded from the above
amounts. Generally, the capital assets of internal service funds are included as governmental
activities in the statement of net assets.
111
112
113
Office ofParks Technology and Interest onOtherFiscal General Fiscal Development Public and Information Long-Term Unallocated BusinessYear Government Services Police Fire Services Works Recreation Services Debt Depreciation Electric Water Sewer Types Total2003 7,857,618$ 1,834,859$ 9,374,251$ 7,102,089$ 1,651,761$ 5,242,162$ 6,361,728$ 2,919,155$ 3,643,268$ 2,543,780$ 43,299,695$ 6,283,025$ 7,347,315$ 4,880,746$ 110,341,452$ (1)The City of College Station first applied GASB statement no. 34 in fiscal year 2003; therefore,government wide financial information for years prior to fiscal year 2003 is not available.Source: City of College StationLAST TEN FISCAL YEARS (1)CITY OF COLLEGE STATION, TEXASGOVERNMENT-WIDE EXPENSES BY FUNCTION114
Operating Capital UnrestrictedFiscal Charges for Grants and Grants and InvestmentYear Services Contributions Contributions Taxes Earnings Miscellaneous Total2003 79,586,591$ 1,942,508$ 10,286,807$ 31,277,451$ 2,866,829$ 19,563$ 125,979,749$ (1) The City of College Station first applied GASB statement no. 34 in fiscal year 2003; therefore,government wide financial information for years prior to fiscal year 2003 is not available.Source: City of College StationProgram Revenues General RevenuesCITY OF COLLEGE STATION, TEXASGOVERNMENT-WIDE REVENUESLAST TEN FISCAL YEARS (1)115
Fines, OtherFiscal Licenses & Forfeits Charges for FinancingYear Taxes Permits & Penalties Services Transfers All Other Sources Total1994 14,855,112$ 557,440$ 915,126$ 1,066,268$ 4,407,529$ 760,676$ 2,731,232$ 25,293,383$ 1995 15,983,707 523,725 1,003,547 1,181,703 4,915,000 1,009,282 3,478,224 28,095,188 1996 18,697,853 513,624 1,342,865 1,249,491 5,523,091 962,608 199,300 28,488,832 1997 18,552,416 487,300 1,177,057 1,250,952 5,387,075 1,304,713 6,828,120 34,987,633 1998 20,300,800 577,032 1,233,604 1,368,883 5,396,700 1,324,899 32,375 30,234,293 1999 21,458,761 643,968 1,208,499 1,463,432 5,664,744 1,414,194 22,082 31,875,680 2000 23,304,989 680,776 1,393,505 1,681,877 6,303,785 1,622,967 55,403 35,043,302 2001 24,474,987 779,159 1,796,203 1,892,964 6,895,193 1,750,703 24,329 37,613,538 2002 27,065,526 870,636 2,225,354 2,160,678 7,288,572 1,369,579 30,106 41,010,451 2003 29,157,436 1,012,960 2,654,154 2,403,316 7,700,326 665,420 1,086,874 44,680,486 (1) Revenues presented include the General and Debt Service Fund Source: City of College StationCITY OF COLLEGE STATION, TEXASGENERAL GOVERNMENTAL REVENUES AND OTHER FINANCING SOURCES (1)LAST TEN FISCAL YEARS116
GeneralFiscal Year Property Sales Franchise Mixed Drink Total1994 5,720,627$ 8,671,072$ 358,392$ 105,021$ 14,855,112$ 1995 6,489,976 8,887,016 485,368 121,347 15,983,707 1996 7,216,073 9,468,207 1,876,572 137,001 18,697,853 1997 7,534,910 9,775,888 1,088,349 153,269 18,552,416 1998 7,777,890 10,912,466 1,415,464 194,980 20,300,800 1999 8,272,479 11,489,702 1,523,736 172,844 21,458,761 2000 8,967,583 12,573,564 1,577,815 186,027 23,304,989 2001 9,799,281 12,773,722 1,644,627 257,357 24,474,987 2002 11,716,307 13,400,054 1,714,241 234,924 27,065,526 2003 13,441,000 13,780,639 1,688,947 246,850 29,157,436 Source: City of College StationCITY OF COLLEGE STATIONGENERAL GOVERNMENTAL TAX REVENUES BY SOURCELAST TEN FISCAL YEARS117
General Public Parks and Library Capital Reimbursed All Debt TransfersFiscal Year Government Police Fire Works Recreation Services Outlay Administrative Other Service Out Total1994 5,923,568$ 4,715,064$ 3,454,391$ 2,533,983$ 3,083,389$ 282,255$ 1,120,536$ (2,886,557)$ 251,454$ 3,320,922$ 445,000$ 22,244,005$ 1995 6,832,606 5,041,596 3,827,835 2,428,727 3,629,244 327,393 480,470 (2,966,008) 298,041 7,364,085 (2) 2,438,668 29,702,657 1996 6,669,982 5,357,437 3,887,596 3,554,664 3,820,477 326,310 593,796 (3,371,737) 314,767 5,601,567 80,500 26,835,359 1997 7,005,557 5,860,586 3,898,305 3,142,284 4,146,567 367,545 365,591 (3,240,805) 336,410 4,517,030 6,761,040 33,160,110 1998 6,264,446 6,289,005 4,195,334 3,821,635 4,263,428 546,437 641,779 (3,683,731) 448,263 4,607,064 2,478,117 29,871,777 1999 7,045,038 6,903,838 4,841,832 3,923,009 4,592,990 571,742 659,861 (4,034,541) 344,589 4,997,131 757,030 30,602,519 2000 7,812,664 7,567,620 5,179,104 4,353,073 5,168,231 600,778 397,312 (4,645,701) 544,170 5,582,927 1,115,376 33,675,554 2001 8,783,263 8,273,632 5,702,804 4,583,796 5,185,737 581,768 376,328 (5,287,928) 606,757 7,700,234 767,000 37,273,391 2002 9,731,964 8,914,893 6,405,874 5,211,720 6,045,622 734,083 150,000 (5,823,852) 305,049 9,384,142 480,807 41,540,302 2003 10,052,883 9,143,331 6,989,125 5,292,243 6,279,342 681,350 673,305 (6,013,085) 577,777 9,480,421 1,103,590 44,260,282 (1) Expenditures presented include the General and Debt Service Funds.(2) Includes refunding of $3,460,00 of short term debt.Source: City of College StationCITY OF COLLEGE STATION, TEXASGENERAL GOVERNMENTAL EXPENDITURES AND OTHER USES BY FUNCTION (1)LAST TEN FISCAL YEARS118
OutstandingPercent Delinquent Total Collections as Outstanding Delinquent Taxes asTotal Tax of Levy Tax Total Tax a Percent of Current Delinquent a Percent of CurrentFiscal Year Tax Levy Collections Collected Collections Collections Levy Taxes Levy1994 5,681,754$ 5,591,040$ 98.40% 129,587$ 5,720,627$ 100.68% 282,137 4.97%1995 6,471,493 6,403,250 98.95% 86,727 6,489,977 100.29% 249,879 3.86%1996 7,171,715 7,086,990 98.82% 74,982 7,161,972 99.86% 233,927 3.26%1997 7,506,754 7,433,046 99.02% 60,133 7,493,179 99.82% 215,100 2.87%1998 7,758,131 7,688,127 99.10% 50,005 7,738,132 99.74% 233,548 3.01%1999 8,292,212 8,164,162 98.46% 59,095 8,223,257 99.17% 200,077 2.41%2000 9,068,352 8,866,966 97.78% 47,940 8,914,906 98.31% 134,418 1.48%2001 9,939,852 9,684,038 97.43% 62,887 9,746,925 98.06% 248,883 2.50%2001 11,892,629 11,570,787 97.29% 80,751 11,651,538 97.97% 328,666 2.76%2003 13,010,508 12,595,378 96.81% 236,468 12,831,846 98.63% 331,582 2.55%Source: City Of College StationCITY OF COLLEGE STATIONLAST TEN FISCAL YEARSPROPERTY TAX LEVIES AND COLLECTIONS119
Land and Personal Property Less Exemptions Less TIF (2)Fiscal Year Improvements and Minerals and Abatements Captured Value Total1994 1,145,143,509$ 172,473,765$ 41,945,080$ -$ 1,275,672,194$ 1995 1,315,229,397 183,852,688 44,813,941 - 1,454,268,144 1996 1,500,298,696 158,694,184 47,371,511 - 1,611,621,369 1997 1,699,990,449 235,332,211 234,121,234 5,526,343 1,695,675,083 1998 1,813,136,426 251,996,841 245,085,209 12,889,738 1,807,158,320 1999 1,946,701,852 261,317,181 276,453,209 18,504,453 1,913,061,371 2000 2,134,828,786 285,990,138 308,471,247 37,318,353 2,075,029,324 2001 2,357,679,796 303,435,454 345,752,888 41,698,188 2,273,664,174 2002 2,565,933,396 304,577,588 380,950,901 39,379,860 2,450,180,223 2003 2,843,495,003 308,466,163 428,395,713 48,757,938 2,674,807,515 (1) Assessed Value is 100% of the estimated actual value.(2) Tax Increment Financing District (TIF) Sources: Brazos County Appraisal District 2002 Certified Appraisal RollCITY OF COLLEGE STATION, TEXASASSESSED VALUE OF TAXABLE PROPERTIES (1)LAST TEN FISCAL YEARS120
Fiscal Year (1) City School County Total (3) City School County City School County1994 0.4450$ 1.63$ 0.434$ 2.5090$ 100% 100% 100% 5,681,754$ 23,390,262$ 13,374,336$ 1995 0.4450 1.6100 0.4180 2.4730 100% 100% 100% 6,471,498 26,261,015 14,211,900 1996 0.4450 1.6100 0.4100 2.4650 100% 100% 100% 7,171,715 28,663,937 15,071,727 1997 0.4427 1.6900 0.4180 2.5507 100% 100% 100% 7,506,754 31,524,892 15,968,203 1998 0.4293 1.7400 0.4170 2.5863 100% 100% 100% 7,758,131 33,969,261 17,043,370 1999 0.4293 1.7500 0.4170 2.5963 100% 100% 100% 8,292,212 36,786,152 17,749,813 2000 0.4293 1.7500 0.4170 2.5963 100% 100% 100% 9,068,352 39,822,571 18,917,599 2001 0.4293 1.7500 0.4100 2.5893 100% 100% 100% 9,939,852 44,121,783 20,283,475 2002 0.4777 1.7900 0.4200 2.6877 100% 100% 100% 11,892,630 48,527,735 22,629,312 2003 0.4777 1.7900 0.4146 2.6823 100% 100% 100% 13,010,508 53,294,883 24,066,065 (1) Tax rates are established by each taxing jurisdiction on an annual basis for revenues to be collected in the following fiscal year.(2) The date that taxes are due for all jurisdictions is October 1. Taxes for all jurisdictions become delinquent on February 1. The penalty is set by state law at 6% in February, and an additional 1% per month up to 12%. The interest is accrued at 1% per month.(3) The upper limit of the tax rate is set at $2.50/$100 of assessed value for each jurisdiction by State Statute. This limit is for both operations and debt service combined.Source: Brazos County Appraisal DistrictTax Rates (2)(per $100 of Assessed Value) Tax Ratios Original Tax LeviesCITY OF COLLEGE STATION, TEXASPROPERTY TAX RATES, RATIOS AND LEVIESALL DIRECT AND OVERLAPPING GOVERNMENTSLAST TEN FISCAL YEARS121
Percentage of Total Current Assessments Assessments OutstandingFiscal Year Assessment Collected Collected (%) Assessments1994 -$ 4,779$ 3.34% 138,471$ 1995 - 59,141 42.71% 79,330 1996 - 17,217 21.70% 62,113 1997 - 2,152 3.46% 59,962 1998 - 36,367 60.65% 23,595 1999 - 503 2.13% 23,092 2000 - 1,296 5.31% 21,796 2001 - 350 1.61% 21,446 2002 - - 0.00% 21,796 2003 - - 0.00% 21,796 Source: City of College Station Fiscal Services DepartmentCITY OF COLLEGE STATION, TEXASPAVING ASSESSMENT COLLECTIONSLAST TEN FISCAL YEARS122
The City has no general obligation legal debt limit other than a ceiling on the tax rate as specifiedby the State of Texas. The prescribed maximum is $2.50 per $100 at 100% valuation. CITY OF COLLEGE STATION, TEXASCOMPUTATION OF LEGAL DEBT MARGINSeptember 30, 2003123
Ratio of NetEstimated Assessed Gross Less Debt Service Net Net Bonded Debt Bonded DebtFiscal Year Population Value Bonded Debt Cash Funds Bonded Debt To Assessed Valuation Per Capita1994 56,374 (1) 1,275,672,194$ 17,028,340$ 1,364,212$ 15,664,128$ 1.23 2781995 58,627 (1) 1,454,268,144 25,722,210 1,845,774 23,876,436 1.64 4071996 60,040 (1) 1,611,621,369 22,263,475 1,189,570 21,073,905 1.31 3511997 61,525 (1) 1,695,675,083 25,388,915 1,947,403 23,441,512 1.38 3811998 63,130 (1) 1,807,158,320 28,960,000 2,826,148 26,133,852 1.45 4141999 66,200 (1) 1,913,061,371 32,750,000 3,472,280 29,277,720 1.53 4422000 68,038 (2) 2,075,029,324 38,700,000 4,202,042 34,497,958 1.66 5072001 70,308 (1) 2,273,664,174 39,375,000 1,722,254 37,652,746 1.66 5362002 72,500 (1) 2,450,180,223 41,665,000 1,287,038 40,377,962 1.65 5572003 75,763 (1) 2,674,807,515 43,170,000 659,180 42,510,820 1.59 561Source:(1) Metropolitan Planning Organization & City of College Station Planning Division(2) U.S. Government Preliminary GuideCITY OF COLLEGE STATION, TEXASRATIO OF NET GENERAL BONDED DEBT TO ASSESSED VALUEAND NET BONDED DEBT PER CAPITALAST TEN FISCAL YEARS124
Per Taxing Body Amount As Of Percent Amount Capita *ESTIMATED OVERLAPPING DEBTCollege Station I.S.D. (1) 57,188,480$ 8/31/2003 83.48% 47,740,943$ 630$ Brazos County (2) 25,897,123$ 9/30/2003 46.80% 12,119,854 160 Bryan I.S.D (3) 67,256,468$ 9/1/2003 5.17% 3,477,159 46 63,337,956$ 836$ NET BONDED DEBTCity of College Station (4) 75,695,000$ 9/30/2003 100.00% 75,695,000 999 NET BONDED AND ESTIMATED OVERLAPPING DEBT 139,032,956$ 1,835$ *Population: 75,763Source:(1) College Station Independent School District(2) Brazos County Auditor(3) Bryan Independent School District(4) City of College Station Finance DepartmentCITY OF COLLEGE STATION, TEXASSCHEDULE OF DIRECT AND ESTIMATED OVERLAPPING DEBTSEPTEMBER 30, 2003Net Debt City's Share
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Total GeneralInterest, Fiscal Governmentaland Other Total Debt ExpendituresFiscal Year Principal Charges Service and Other Uses Ratio1994 2,066,045$ 1,254,877$ 3,320,922$ 22,244,005$ 14.93%1995 5,796,130 (1) 1,519,907 7,316,037 29,702,657 24.63%1996 3,938,735 1,660,441 5,599,176 26,835,359 20.86%1997 2,694,075 1,738,745 4,432,820 33,160,109 13.37%1998 3,113,915 1,483,793 4,597,708 29,871,777 15.39%1999 2,845,000 2,141,792 4,986,792 30,602,519 16.30%2000 3,460,000 2,122,927 5,582,927 33,675,554 16.58%2001 4,475,000 3,222,734 7,697,734 37,273,391 20.65%2002 5,950,000 3,434,142 9,384,142 41,540,302 22.59%2003 5,820,000 3,660,028 9,480,028 44,260,282 21.42%(1) Includes refunding of $3,460,000 of short term debt.Source: City of College StationLAST TEN FISCAL YEARSCITY OF COLLEGE STATION, TEXASRATIO OF ANNUAL DEBT SERVICE EXPENDITURESFOR GENERAL OBLIGATION DEBTTO TOTAL GENERAL GOVERNMENTAL EXPENDITURES AND OTHER USES126
OperatingExpensesOperating (Excluding Net Average Annual Maximum AnnualFiscal Year Revenues Depreciation) Revenues Total Coverage Total Coverage1994 (1)48,291,091$ 36,190,720$ 12,100,371$ 1,553,305$ 7.79 4,176,525$ 2.901995 47,365,953 34,682,369 12,683,584 2,819,408 4.50 6,099,551 2.081996 (2)45,380,036 32,395,644 12,984,392 2,655,401 4.89 6,089,271 2.131997 48,615,366 29,608,260 19,007,106 2,968,110 6.40 6,388,449 2.981998 49,966,216 27,885,854 22,080,362 3,014,943 7.32 5,906,739 3.741999 49,101,104 30,080,145 19,020,959 2,844,899 6.69 5,502,384 3.462000 52,932,584 41,925,412 11,007,172 3,472,421 3.17 5,687,161 1.942001 59,143,896 45,465,778 13,687,118 4,688,518 2.92 6,395,244 2.142002 62,141,066 46,274,555 15,866,511 5,825,064 2.72 8,048,707 1.972003 64,046,246 47,785,550 16,260,696 5,773,582 2.81 8,084,285 2.01(1) In Fiscal Year 1994, the Utility Billing Fund was combined with the Electric Fund for reporting purposes.(2) In Fiscal Year 1996, the Utility Billing Fund was reported separately as an Internal Service Fund.Source: City of College StationCITY OF COLLEGE STATION, TEXASUTILITY FUNDSSCHEDULE OF REVENUE BOND COVERAGELAST TEN FISCAL YEARS127
Number Number Numberof of of Fiscal Year Permits Value Permits Value Permits Value1994 583 64,673,810$ 225 20,505,039$ 808 85,178,849$ 1995 634 28,514,709 102 38,130,694 736 66,645,403 1996 656 48,953,298 131 14,432,979 787 63,386,277 1997 590 53,435,022 212 47,682,555 802 101,117,577 1998 655 69,831,880 150 57,439,865 805 127,271,745 1999 1,020 87,917,466 138 26,665,024 1,158 114,582,490 2000 639 85,278,855 162 46,094,230 801 131,373,085 2001 782 79,340,756 191 40,194,722 973 119,535,478 2002 776 58,965,494 177 27,658,030 953 86,623,524 2003 658 96,990,934 106 36,366,447 764 133,357,381 Source: City of College Station Development ServicesResidential Commercial TotalCITY OF COLLEGE STATION, TEXASCONSTRUCTION PERMITSLAST TEN CALENDAR YEARS128
Percent of Total2003 Assessed AssessedTaxpayer Type of Business Valuation ValuationCB&L Associates Retail Mall 49,331,205 1.84%Verizon Communications, Inc Utility 34,347,890 1.28%Alkosser/Weinberg Housing 33,751,295 1.26%College Station Hospital, LP Medical 25,681,960 0.96%Wal-Mart's/Sam's Retail 23,769,510 0.89%Melrose Apartments Housing 19,400,000 0.73%Fairfield College Station, LP Housing 18,340,000 0.69%301 Church Avenue, LP Housing 17,936,445 0.67%HE Butt Store Property Co. Grocery 17,615,105 0.66%University Commons Housing 17,279,200 0.65%257,452,610 9.63% Source: Brazos County Appraisal DistrictCITY OF COLLEGE STATION, TEXASPRINCIPAL TAXPAYERSSEPTEMBER 30, 2003129
FY2003 Total Percent of Utility KWH KWHCustomer Type of Business Consumption ConsumedCity of College Station Municipality 20,381,634 2.94%CSISD Schools 16,507,466 2.38%CBL & Associates Retail Mall 14,058,351 2.03%Wal-Mart Retail 7,688,880 1.11%Kroger Retail Grocery 7,040,960 1.02%State Headquarters/TAMU University 6,349,360 0.92%College Station Medical Ctr Hospital 5,888,480 0.85%US Dept of Agr Government 5,338,003 0.77%Lane C/S Ltd. Hotel 5,155,500 0.74%HEB Retail Grocery 5,033,160 0.73%TOTAL 93,441,794 13.48%Total KWH Consumption for the period October 1, 2002 to September 30, 2003 was693,287,482Source: City of College Station Utility Billing Division CITY OF COLLEGE STATION, TEXASPRINCIPAL UTILITY CUSTOMERSSEPTEMBER 30, 2003130
Self InsuredInsurance Company Coverage Retention LimitsState National Insurance Co Worker Compensation 250,000$ StatutoryState National Insurance Co General Liability $250,000 per occurrence $5,000,000 per occurrenceLaw Enforcement Liability$15,000,000 annual aggregateState National Insurance Co Errors & Omissions Liability $250,000 per wrongful act $5,000,000 per wrong act$15,000,000 annual aggregateState National Insurance Co Automobile Liability $250,000 per occurrence $5,000,000 per occurrenceTexas Municipal League Catastrophe Coverage 100,000$ 15,000,000$ Texas Municipal League Real & Personal Property $100,000 per occurrence Replacement cost/$129,140,235annual aggregateTexas Municipal League Mobile Equipment $100,000 per occurrence Actual cash value $5,095,324annual aggregateTexas Municipal League Boiler & Machinery $100,000 per accident $5,000,000 per accidentTexas Municipal League Public Employee Dishonesty $100,000 per occurrence $300,000 annual limitTexas Municipal League Forgery or Alteration $100,000 per occurrence $300,000 annual limitTexas Municipal League Theft, Disappearance & Destruction $100,000 per occurrence $300,000 annual limitTexas Municipal League Computer Fraud $100,000 per occurrence $100,000 annual limitCITY OF COLLEGE STATIONSUMMARY OF INSURANCE COVERAGESeptember 30, 2003131
Date Incorporated October 1938Date first charter adopted October 1938Date present charter amended May 1992Form of government Council-ManagerArea in square miles:Year Square Miles1938 1.51948 4.21958 7.31968 17.31978 22.61982 23.81986 26.71988 27.71992 28.11994 30.01996 38.21998 40.8Miles of streets Paved 733 Lane MilesUnpaved 4.3 Lane MilesMiles of sidewalks 89 MilesFire Protection:Number of stations 4Number of full-time employees 103Police Protection:Number of employees (sworn) 100Number of employees (civilian) 43Number of patrol units 25One jail facility with a capacity of 17MISCELLANEOUS STATISTICAL AND DEMOGRAPHIC DATASEPTEMBER 30, 2003CITY OF COLLEGE STATION, TEXAS132
RECREATION:Number of playgrounds 35 Number of gyms 1Number of basketball courts 22 Number of volleyball courts 7Number of soccer fields 19 Number of nature trails 8Number of softball/baseball fields 19 Number of open play areas 29Number of tennis courts 14 Number of picnic pavilions 6Number of picnic shelters 19 Number of jogging/walking trails 22Number of swimming pools 3PARKS:Facility Acres Facility AcresAnderson 8.90 Merry Oaks 4.60Arboretum/Bee Creek 43.50 Oaks 7.50Bill Madeley 5.14 Parkway 1.90Brison 9.20 Pebble Creek 10.20Brother's Pond 16.12 Raintree 13.00Castlegate 8.26 Richard Carter 7.14Central 47.20 Sandstone 15.21Conference Center 2.30 Shenandoah 14.77Cy Miller 2.50 Southeast Park 62.00Eastgate 1.80 Southwest Park Site 4.78Edelweiss 12.30 Southwood Complex 44.70Edelweiss Gardens 7.74 Steeplechase Park Site 9.00Emerald Forest 4.59 Thomas 16.10Gabbard 10.70 University Park Site 10.20Georgia K. Fitch 11.30 Veterans Athletic 150.00Hensel-TAMU 29.70 W.A. Tarrow (includes Lincoln) 21.26Jack and Dorothy Miller 10.00 Westfield 4.29Lemon Tree 15.40 Windwood 1.37Lick Creek 515.50 Wolfpen Creek 19.49Lion's 1.50 Woodcreek 6.60Longmire 4.16 Woodland Hills 13.91Luther Jones 1.80 Woodway Park Site 6.26TOTAL ACREAGE1,213.89CITY OF COLLEGE STATION, TEXASMISCELLANEOUS STATISTICAL AND DEMOGRAPHIC DATASEPTEMBER 30, 2003(Continued)133
UTILITY FUNDS:Electric Customers (Connections)35,421 Average Electrical Consumption: 54,820,470 KWH/MonthWater Customers (Connections)29,358 Average Water Consumption: 253,259 MGW/MonthNumber of Employees:Electric59Water28Sewer36Water Capacity:Number of Wells6Combined Capacity of Wells 26 million gallons per dayNumber of Ground Storage Tanks, 2 One 3-million gallon, One 5-million gallonNumber of Elevated Storage Tanks, 2 One 3-million gallon, One 2-million gallonMiles of Water Lines311 milesElectric Capacity:Maximum Capacity 255 megawattsAnnual Peak Demand 163 megawattsNumber of Substations4Miles of Distribution Lines 414 milesMiles of Sewer Lines262 milesSolid Waste Collection Fund:Number of Users (Units) 28,215 Methodology Curbside pickup using automated containersCITY OF COLLEGE STATION, TEXASMISCELLANEOUS STATISTICAL AND DEMOGRAPHIC DATASEPTEMBER 30, 2003(Continued)134
Education:Attendance centers 11 Number of classrooms 550 Number of teachers 600 Number of students 7,683 Elections:Number of registered voters:Last general election (Brazos County) 86,558 Last municipal election 43,313 Number of votes cast in:Last general election (Brazos County) 6,449 Last municipal election 1,878 Percentage of registered voters voting in:Last general election (Brazos County) 7.45%Last municipal election 4.34%Population:Estimate Census Count2000 68,038 1990 52,456 1980 37,296 1970 17,676 1960 1,196 1950 7,925 Source: City of College StationCITY OF COLLEGE STATION, TEXASMISCELLANEOUS STATISTICAL AND DEMOGRAPHIC DATASEPTEMBER 30, 2003(Continued)135
Year University Enrollment1994 42,0181995 41,7901996 41,8921997 41,4611998 43,3891999 43,4422000 44,0262001 44,6182002 45,1432003 44,813Source: TAMU, Office of Institutional Studies And PlanningTotal Number Number PercentYear Labor Force Employed Unemployed Unemployed1994 27,312 26,546 766 2.81995 27,430 26,561 869 3.21996 26,691 25,973 718 2.71997 28,453 27,862 591 2.11998 28,889 28,377 512 1.81999 30,793 30,246 547 1.82000 31,273 30,802 471 1.52001 30,572 30,020 552 1.82002 29,734 29,105 629 2.12003 33,975 33,160 815 2.4Source: Texas Workforce Commission (Austin, Texas)PRIMARY LABOR FORCE FOR COLLEGE STATIONCITY OF COLLEGE STATION, TEXASMISCELLANEOUS STATISTICAL AND DEMOGRAPHIC DATASEPTEMBER 30, 2003(Continued)ACTUAL TEXAS A&M UNIVERSITY ENROLLMENTBY FALL SEMESTERS136