HomeMy WebLinkAboutFY 2004-2005 -- Comprehensive Annual Financial ReportCOMPREHENSIVE ANNUAL
FINANCIAL REPORT
FOR FISCAL YEAR ENDED SEPTEMBER 30, 2005
CITY OF COLLEGE STATION , TEXAS
HEART OF THE RESEARCH VALLEY
the heart of the Research Valley
Mission Statement
On behalf of the citizens of College Station, home
of Texas A&M University, we will promote and
advance the community's quality of life.
www.cstx.gov
CITY OF COLLEGE STATION, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2005
PREPARED BY THE
CITY OF COLLEGE STATION FISCAL SERVICES DEPARTMENT
JEFF KERSTEN, FINANCE AND STRATEGIC PLANNING DIRECTOR
PHILLIP GUILLEN, ACCOUNTING MANAGER
CITY OF COLLEGE STATION, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2005
Table of Contents
Page
i
INTRODUCTORY SECTION
Letter of Transmittal ................................................................................................................................vi
GFOA Certificate of Achievement for Excellence in Financial Reporting.............................................xiii
Organizational Chart.............................................................................................................................xiv
Principal City Officials ............................................................................................................................xv
FINANCIAL SECTION
Independent Auditors' Report .................................................................................................................1
Management’s Discussion and Analysis (Unaudited).............................................................................3
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Assets..........................................................................................................23
Statement of Activities.............................................................................................................24
Fund Financial Statements:
Balance Sheet – Governmental Funds ...................................................................................26
Reconciliation of Governmental Funds Balance Sheet
to the Statement of Net Assets................................................................................................27
Statement of Revenues, Expenditures, and Changes
in Fund Balances – Governmental Funds...............................................................................28
Reconciliation of the Statement of Revenues, Expenditures, and Changes
in Fund Balances of Governmental Funds to the Statement of Activities...............................29
Statement of Net Assets – Proprietary Funds.........................................................................30
Statement of Revenues, Expenses, and Changes
in Fund Net Assets – Proprietary Funds .................................................................................32
Statement of Cash Flows – Proprietary Funds .......................................................................34
Notes to the Financial Statements.................................................................................................37
Required Supplementary Information:
Schedule of Funding Progress – Texas Municipal Retirement System ........................................69
CITY OF COLLEGE STATION, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2005
Table of Contents
Page
ii
Schedule of Revenues, Expenditures, and Changes in Fund
Balances, Budget and Actual (Budgetary Basis) – General Fund.................................................70
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
Schedules of Revenues, Expenditures, and Changes in Fund Balances – Budget
and Actual (Budgetary Basis):
Debt Service......................................................................................................................82
Adjustments to Debt Service Fund Revenues To
Reconcile from Budget Basis to GAAP Basis...................................................................83
Special Revenue Funds:
Community Development ..........................................................................................84
Convention Center......................................................................................................85
Hotel/Motel Tax ..........................................................................................................86
Parks Escrow..............................................................................................................87
Wolf Pen Creek Tax Increment Financing District .....................................................88
Adjustments to Special Revenue Fund Revenues and
Expenditures to Reconcile from Budget Basis to GAAP Basis.........................................89
Capital Projects Funds:
Business Park.............................................................................................................90
Drainage Projects.......................................................................................................91
General Government Projects....................................................................................92
Parks Projects ............................................................................................................93
Streets Projects..........................................................................................................94
CITY OF COLLEGE STATION, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2005
Table of Contents
Page
iii
Adjustments to Capital Projects Fund Revenues and
Expenditures to Reconcile from Budget Basis to GAAP Basis.........................................95
Nonmajor Enterprise Funds:
Combining Statement of Net Assets ..........................................................................98
Combining Statement of Revenues, Expenses, and Changes
in Fund Net Assets .....................................................................................................99
Combining Statement of Cash Flows.......................................................................100
Internal Service Funds:
Combining Statement of Net Assets ........................................................................102
Combining Statement of Revenues, Expenses, and Changes
in Fund Net Assets...................................................................................................104
Combining Statement of Cash Flows.......................................................................106
Capital Assets Used in the Operation of Governmental Funds:
Schedule by Source .................................................................................................111
Schedule by Function and Activity ...........................................................................112
Schedule of Changes by Function and Activity........................................................114
STATISTICAL SECTION
Government-Wide Expenses by Function ..........................................................................................118
Government-Wide Revenues..............................................................................................................119
General Governmental Revenues and Other Financing Sources......................................................120
General Governmental Tax Revenues By Source..............................................................................121
General Governmental Expenditures and Other Uses by Function ...................................................122
Property Tax Levies and Collections ..................................................................................................123
Assessed Value of Taxable Properties...............................................................................................124
Property Tax Rates, Ratios and Levies - All Direct and Overlapping Governments ..........................125
Paving Assessment Collections..........................................................................................................126
Computation of Legal Debt Margin .....................................................................................................127
CITY OF COLLEGE STATION, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2005
Table of Contents
Page
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Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt Per Capita................128
Schedule of Direct and Estimated Overlapping Debt .........................................................................129
Ratio of Annual Debt Service Expenditures for General Obligation Debt
to Total General Governmental Expenditures and Other Uses..........................................................130
Utility Funds - Schedule of Revenue Bond Coverage ........................................................................131
Construction Permits...........................................................................................................................132
Principal Taxpayers.............................................................................................................................133
Principal Utility Customers..................................................................................................................134
Summary of Insurance Coverage .......................................................................................................135
Miscellaneous Statistical and Demographic Data ...............................................................................136
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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,
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 81,987 as of December 2005. 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
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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.
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 has continued to grow in the last year. The concentration of stable and even-growing
employment sectors such as government, higher education and health care contribute to the steady
growth that College Station has experienced over the last several years. This growth provides some of
the additional resources needed to maintain service levels to the citizens and visitors of College Station.
In 2005, the Bureau of Labor Statistics (BLS) significantly altered the methodology used to calculate
unemployment. The new calculation method resulted in just over a one percent increase in the
unemployment figure for College Station. In prior years, the unemployment rate was in the 2.5 percent
range. As a result of the BLS change, the annual unemployment rate for fiscal year 2005 was
approximately 3.6 percent.
In 2005, state sales tax revenues were up by 6.5 percent. Sales tax collections in College Station saw
growth in fiscal year 2005 as well. This is consistent with growth in sales tax receipts the City has
experienced over the last several years. In fiscal year 2005, sales taxes were up by 3.3 percent over
fiscal year 2004 to $15,445,404.
College Station continues to see growth in housing and commercial development. There were 553 new
housing starts during 2005, which is slightly higher than in 2004. Total ad valorem assessed valuation
increased by approximately $261 million or approximately 8.7 percent for fiscal year 2005 over fiscal year
2004. Commercial development continued to be strong with both new and redevelopment. Several new
commercial businesses opened in College Station in 2005, and several new hotels were under
construction in 2005. The University Drive corridor continued to have a significant amount of new
businesses and increased traffic.
One major asset of the City of College Station is that it is the home of Texas A & M University ("TAMU").
TAMU is located on an approximately 5,200 acre campus within the City. TAMU has a significant
economic impact on the City, contributing over $940 million annually to the local economy. TAMU has
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consistently ranked among the top 50 universities in the United States. Each year, TAMU's
approximately 2,500 faculty members conduct an estimated $450 million worth of sponsored research
projects. The $4.45 billion endowment ranked TAMU ninth in the nation for fiscal year 2005. Student
enrollment at TAMU was 45,089 as of September 2005. TAMU employs more than 20,000 full-time and
part-time staff.
Major Initiatives
In 2005, numerous capital improvement initiatives were undertaken by the City. Construction continued
on the second phase of trails and drainage improvements in the Wolf Pen Creek District. This project is
being paid for from the Wolf Pen Creek Tax Increment Financing District fund and the Drainage Utility
fund, and is a significant project in the Wolf Pen Creek Corridor that is designed to help spur additional
development in this growing corridor. Additional Wolf Pen Creek capital projects are planned for the
future to encourage continued growth. In 2005, the expansion of the Lincoln Recreation Center was
completed. The expansion included additional game room space, dressing rooms, restrooms, storage
and a fitness room. The project also included a multi-purpose pavilion and 62 additional parking spaces.
Construction began in 2005 on a zero-depth splash park to be installed at the Lincoln Center. The City
continues to upgrade and replace infrastructure within its parks system. In 2005, other parks projects
completed included improvements to Parkway Park, the installation of lighting at various soccer fields,
and enhancements to a variety of parks including the installation of lighting, landscaping, benches,
sidewalks, drinking fountains, and shade covers.
Street projects completed in 2005 included the extension of Longmire Drive. Completion of this roadway
section makes Longmire Drive continuous between Barron Road and Valley View Drive. The project
included extending a major collector roadway with two travel lanes, a continuous two-way left turn lane,
bike lanes and sidewalks. The section also included a box culvert bridge with a stamped colored-concrete
lining, river rock rip-rap, and streetscape-style handrails. Also completed in 2005 was the widening of
Greens Prairie Road from State Highway 6 to just beyond Pebble Creek Parkway. The road was
widened from two to four lanes and includes a median and turn pockets. The rehabilitation of Dominik
Drive was also completed in 2005. This rehabilitation went from the end of Dominik (cul-de-sac) to
Munson Drive. This section of Dominik was assigned as a bike route (with no marked bike lanes). Traffic
projects completed in 2005 included a pedestrian signal at Harvey Road and Dartmouth. This project
included the installation of pedestrian signals and push buttons which allows for safe access for
pedestrians to and from apartments and shopping centers. This project also linked close to 1,000 feet of
sidewalks and ADA ramps to make this intersection accessible to all pedestrians. Hike and bike trail
projects underway in 2005 included the installation of trails in Brison Park. This project involves the
installation of a bike and pedestrian path through the Old Jersey Street right-of-way adjacent to Brison
Park.
Electric utility projects completed in 2005 included the installation of a 138kv capacitor bank at the Greens
Prairie Road substation. This capacitor is designed to keep voltage loads stable on the transmission
system. Other projects completed by the electric utility in 2005 included various system overhead
improvements designed to increase system reliability and load. In addition, lines were relocated
underground in conjunction with the Texas Avenue relocation project. In the water and wastewater
utilities, work continued on a number of capital projects. Water and wastewater lines were moved in
conjunction with the widening of Texas Avenue. Work also continued on the construction of a parallel
water transmission line along FM2818 from Hwy 21 south to Villa Maria Road. The additional system
capacity is required to support the Northgate area and to provide water service to the annexed area west
of FM2818 along FM60. Emergency electric power production equipment was purchased in 2005 to
ensure minimum water and wastewater services can be maintained in the event of a primary electric
service blackout. In addition, numerous water and wastewater line rehabilitation and replacement
projects were ongoing in 2005.
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Construction on Fire Station #5 located on Greens Prairie Road in the southern part of College Station
continued in 2005. This station is needed to provide adequate fire protection in the growing southern part
of the City. It is anticipated that the station will open in 2006.
Technology is an ongoing area of advancement for the City. Completed in 2005 was the implementation
of software to allow for the payment of municipal court fines over the internet. Another project completed
in 2005 was the update of the City’s topographical/aerial maps. These maps are integral to the City’s GIS
system. Also completed in 2005 was the automated police booking project. This project automates the
booking of detainees in the City's jail facility. It includes live scan of fingerprints, thus making it possible
to immediately compare detainee fingerprints to those on file, which should speed up the booking process
allowing officers to return more quickly to patrol duty.
Capital Planning
The citizens of the City approved general obligation bond proposals totaling approximately $38.4 million
in November 2003. The second portion of this bond authorization, totaling $5,710,000, was issued in
2005. It is anticipated that various street, traffic safety, public buildings, parks 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 ten years with successful general obligation bond proposals. Key projects planned include
street and traffic improvements, public safety facility improvements and park expansions. Upcoming
street and traffic improvements include the second phase of the Dartmouth Drive extension, the design of
Rock Prairie Road East widening, improvements to Barron Road and the construction of a number of new
traffic signals. Public safety facility improvements include the relocation of Fire Station #3 and the
expansion of the existing Police Station. Future park expansion projects include the construction of the
second phase of Veterans Park and the construction of University Park. The design of the second phase
of Veterans Park occurred in FY05, and construction is anticipated for FY06 and FY07. It is projected
that the City will be able to make these improvements without increasing the ad valorem tax rate for the
capital portion of these projects.
Planning in the electric, water, wastewater and drainage utilities provides for an anticipated investment of
$133 million over the next five years. The electric funds will be used to provide electric line extensions,
transmission enhancements, substations, new customer connections, and replacements of existing
facilities. The water utility will continue to replace lines in older neighborhoods, add new transmission and
distribution lines, provide for a looped system, add new shallow 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. Drainage funds will
be used for improvements that allow the City to maintain adequate storm carrying capacity of the
drainage system. Some rate increases are anticipated for the 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 issued a request for applications for depository
services in June 2005. The current depository contract expires in 2008 and is with Citibank, Texas N.A.
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 105 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 Bank of New York.
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Temporarily idle cash for all funds is invested by City officials in securities as allowed by Texas Statutes
and the City's investment policy. This policy is reviewed and adopted by the City Council annually. The
average balance of the City's investment portfolio for fiscal year 2005 was approximately $129,758,428.
The overall portfolio produced total interest earnings of $3,540,745 which represents an increase of
$735,637 from fiscal year 2004. The City had no realized losses on any securities held during fiscal year
2005. Investment securities purchased by 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 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.
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 and 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 has implemented an aggressive safety
training program.
Employee Retirement System
The City is a member of the Texas Municipal Retirement System ("TMRS") that 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 seven (7)
percent of gross earnings. The City's contribution rate for 2005 was 12.17 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 INFORMATION
Independent Audit
Section 37 of the City's Charter requires that not less than thirty (30) days prior to the end of each fiscal
year, the City Council shall designate a qualified public accountant or accountants who, as of the end of
the fiscal year, shall make an independent audit of accounts and other evidences of financial transactions
of the city government and shall submit the report to the City Council. Such accountants shall have no
personal interest, direct or indirect, in the fiscal affairs of the city government. They shall not maintain any
account or record of the city business, but, within specifications approved by the City Council, shall post-
audit the books and documents kept by the Department of Fiscal Services and any separate or
subordinate accounts kept by any other office, department or agency of the city government.
The City of College Station has engaged Ingram, Wallis & Company 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, 2005 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.
xiii
CITY OF COLLEGE STATIONCITIZENS OFCOLLEGE STATIONMAYOR ANDCOUNCILAPPOINTED BOARDS ANDCOMMISSIONSCITYSECRETARYMUNICIPALJUDGESCITY ATTORNEYCITY MANAGER'S OFFICECity ManagerAssistant City ManagerCOMMUNITYPROGRAMSPUBLIC COMMUNICATIONSAND MARKETINGEMERGENCYMANAGEMENTFIREPOLICEECONOMIC DEVELOPMENT/COMMUNITY DEV.FISCALSERVICESPARKS &RECREATIONDEVELOPMENTSERVICESPUBLICWORKSPUBLIC UTILITIESOFFICE OFTECHNOLOGY &INFORMATIONSERVICESHUMANRESOURCESADMINISTRATIONSUPPRESSIONPREVENTIONEMSADMINISTRATIONUNIFORMPATROLCRIMINALINVESTIGATIONSSPECIALSERVICESQUARTERMASTERCOMMUNICATIONS /JAILPROFESSIONALSTANDARDSINFORMATIONSERVICESBUSINESS PARKEDC LIAISONREDEVELOPMENTTOURISMDEVELOPMENTRETAILDEVELOPMENTSPECIAL PROJECTS/CIPCOMMUNITY DEVELOPMENTACCOUNTINGPURCHASINGRISKMANAGEMENTMUNICIPALCOURTADMINISTRATIONRECREATIONSPECIALFACILITIESPARKSOPERATIONSFORESTRYARTS COUNCILBUILDINGINSPECTIONPLANNINGSTREETSDRAINAGEFLEETTRAFFICSOLID WASTECOLLECTIONENGINEERINGFACILITIESMAINTENANCEELECTRICWATERWASTEWATERMANAGEMENTINFORMATIONSERVICESGEOGRAPHICINFORMATIONAND MAP SERVICESCOMMUNICATIONSERVICESUTILITY CUSTOMER SERVICESLIBRARYAPPOINTEDBOARDSDEVELOPMENTCOORDINATIONOFFICE OF BUDGETAND STRATEGIC PLANNINGCONVENTION &VISITORS BUREAUPARKINGCOMMUNITY ENHANCEMENT(CODE ENFORCEMENT)xiv
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CITY OF COLLEGE STATION, TEXAS
PRINCIPAL CITY OFFICIALS
September 30, 2005
Elected Officials:
Mayor.........................................................................................................................................................Ron Silvia
Council Member, Mayor Pro Tem...........................................................................................................John Happ
Council Member, Place 1 ......................................................................................................................... Ben White
Council Member, Place 3 ............................................................................................................................Ron Gay
Council Member, Place 4 ...............................................................................................................Susan Lancaster
Council Member, Place 5 ........................................................................................................................Chris Scotti
Council Member, Place 6 ......................................................................................................................Nancy Berry
City Administration:
Interim 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
Finance and Strategic Planning Director ..............................................................................................Jeff Kersten
Director of Economic Development..........................................................................................................Kim Foutz
Director of Development Services...........................................................................................................Joey Dunn
Fire Chief ............................................................................................................................................... Robert Alley
Director of Parks and Recreation ..................................................................................................Stephen Beachy
Director of Human Resources..........................................................................................................Julie O’Connell
Police Chief.....................................................................................................................................Michael Clancey
Director of Public Works .........................................................................................................................Mark Smith
Management's Discussion and Analysis
For the Fiscal Year Ended September 30, 2005
(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, 2005. 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
$304,277,434 (net assets). Of this amount,
$58,727,730 (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
$10,830,982 during the fiscal year.
• At the close of the current fiscal year, the
City's governmental funds reported combined
ending fund balances of $59,413,861, an
increase of $103,275 when compared to the
prior year.
• Approximately 26 percent of the combined
governmental funds ending fund balance, or
$15,282,570, is available for spending at the
City's discretion (unreserved-undesignated
fund balance).
• During fiscal year 2005, the City's total debt
increased by approximately $10,675,000.
Key factors in this increase were the
issuance of $5,710,000 in General Obligation
Improvement Bonds, $7,595,000 in
Certificates of Obligation, $8,035,000 in
Utility System Revenue Bonds, and
$12,995,000 in Utility System Revenue
Refunding Bonds.
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.
Photo by: Jim Joham of Aerial Experts
Management's Discussion and Analysis
For the Fiscal Year Ended September 30, 2005
(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 vi-xv
+
Management's Discussion and Analysis
Pages 3-21
Government-Wide Financial Statements
Basic Pages 23-25
Financial Governmental Fund Financial Statements
Statements Pages 26-29
and Proprietary Fund Financial Statements Financial
RSI Pages 30-35 Section
Notes to the Financial Statements
Pages 37-68
Additional Required Supplementary Information
Pages 69-71
Information on individual funds and other
supplementary information not required by GAAP
Pages 73-115
+
Trend Data and Nonfinancial Data
Pages 118-140
Statistical
Section
Management's Discussion and Analysis
For the Fiscal Year Ended September 30, 2005
(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.
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 23-25.
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have
been segregated for specific activities or objectives. The City, like other state and local
governments, uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements. All of the funds of the City can be divided into governmental funds and
proprietary funds.
Governmental Funds
Governmental funds are used to account for essentially the same functions reported as
governmental activities in the government-wide financial statements. However, unlike the
government-wide financial statements, governmental fund financial statements focus on near-
term inflows and outflows of spendable resources as well as on balances of spendable resources
available at the end of the fiscal year. Such information may be useful in determining what
financial resources are available in the near future to finance the City's programs.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements.
By doing so, readers may better understand the long-term impact of the government's near-term
financing decisions. Both the governmental fund balance sheet and the governmental fund
statement of revenues, expenditures, and changes in fund balances provide a reconciliation to
facilitate this comparison between governmental funds and governmental activities.
Management's Discussion and Analysis
For the Fiscal Year Ended September 30, 2005
(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, all of which are considered to be major funds. Data from the
remaining governmental funds are combined into a single, aggregated presentation. Individual
fund data for each of the non-major governmental funds is provided in the form of combining
statements elsewhere in this report. The governmental fund financial statements can be found on
pages 26-29.
The City adopts an annual appropriated budget for its General Fund, Debt Service Fund, Special
Revenue Funds, and Capital Projects Funds. A budgetary comparison statement has been
provided for the General Fund, Debt Service Fund, Special Revenue Funds, and Capital Projects
Funds to demonstrate compliance with their budgets.
Proprietary Funds
Proprietary funds are generally used to account for services for which the City charges
customers--either outside customers or internal units or departments of the City. Proprietary
funds provide the same type of information as shown in the government-wide financial
statements, only in more detail. The City maintains the following two types of proprietary funds:
Enterprise funds are used to report the same functions presented as business-type
activities in the government-wide financial statements. The City uses enterprise funds to
account for the operations of the electric, water, sewer, sanitation, 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 and Northgate Parking Garage) are presented
in aggregate as non-major enterprise funds. Individual fund data for the non-major
enterprise funds can be found in the form of combining statements elsewhere in this
report.
Internal service funds are used to report activities that provide supplies and services for
certain City programs and activities. The City uses internal service funds to account for
communication, fleet maintenance, 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 and 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 30-35.
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, 2005
(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
funds, the non-major enterprise funds, and the internal service funds are presented on pages 73-
107 immediately following the required supplementary information.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted earlier, net assets may serve as a useful indicator of a government's financial position.
For the City, assets exceeded liabilities by $304,277,434 at the close of the most recent fiscal
year.
The largest portion of the City's net assets (78 percent) reflects its investment of $238,462,438 in
capital assets (e.g., land, buildings, and equipment), less any related outstanding debt used to
acquire those assets. The City uses these capital assets to provide services to citizens;
consequently, these assets are not available for future spending. Although the City's investment
in its capital assets is reported net of related debt, it should be noted that the resources needed to
repay this debt must be provided from other sources, since the capital assets themselves cannot
be liquidated for these liabilities.
Governmental Activities Business-Type Activities Total
2005 2004 2005 2004 2005 2004
Assets
Current and Other Assets 77,727,672$ 75,307,405$ 66,784,556$ 63,463,862$ 144,512,228$ 138,771,267$
Capital Assets 159,744,636 145,281,615 192,012,087 184,931,270 351,756,723 330,212,885
Total Assets 237,472,308 220,589,020 258,796,643 248,395,132 496,268,951 468,984,152
Liabilities
Long-Term Liabilities
Outstanding 91,475,720 83,471,294 79,408,055 75,608,361 170,883,775 159,079,655
Other Liabilities 7,349,018 6,798,303 13,758,724 9,659,742 21,107,742 16,458,045
Total Liabilities 98,824,738 90,269,597 93,166,779 85,268,103 191,991,517 175,537,700
Net Assets
Invested in Capital Assets,
Net of Related Debt 106,460,949 100,066,963 132,001,489 130,810,275 238,462,438 230,877,238
Restricted 4,289,531 4,289,623 2,797,735 2,651,325 7,087,266 6,940,948
Unrestricted 27,897,090 25,962,837 30,830,640 29,665,429 58,727,730 55,628,266
Total Net Assets 138,647,570$ 130,319,423$ 165,629,864$ 163,127,029$ 304,277,434$ 293,446,452$
Management's Discussion and Analysis
For the Fiscal Year Ended September 30, 2005
(Unaudited)
City of College Station, Texas
8
An additional portion of the City's net assets, $7,087,266 (2 percent) represents resources that
are subject to external restrictions on how they may be used. The remaining balance of
unrestricted net assets, $58,727,730 (20 percent) may be used to meet the government's
ongoing obligations to citizens and creditors.
The comparison between fiscal year 2005 and 2004 includes three adjustments to the fiscal year
2004 numbers. The first adjustment relates to the reporting of encumbrances in the
governmental activities net asset section. In fiscal year 2004 encumbrances were reported as
restricted net assets. An adjustment has been made to remove encumbrances from net assets in
fiscal year 2004. This makes the 2004 net assets comparable to the 2005 net assets. The
second adjustment relates to a restatement in the electric fund. This restatement is the result of a
correction to the value of a previously unrecorded building in the electric fund. Both Capital
Assets and Invested in Capital Assets, Net of Related Debt have been increased by $2,108,473
in the business-type activities for fiscal year 2004. The third adjustment relates to the recording
of the liability for unpaid claims in the property and casualty fund and the workers’ compensation
fund. This adjustment caused a decrease in the 2004 governmental activities net assets of
$904,263.
At the end of the current fiscal year, the City was able to report positive balances in all three
categories of net assets, both for the government as a whole, as well as for the business-type
activities. The same situation held true for the prior fiscal year.
The City's net assets increased by $10,830,982 as a result of fiscal year 2005 operations. The
increase is primarily attributable to increases in ongoing revenues and relatively stable expenses.
Management's Discussion and Analysis
For the Fiscal Year Ended September 30, 2005
(Unaudited)
City of College Station, Texas
9
The following table provides a summary of the City's operations for the year ended September
30, 2005 and highlights key elements of the increase in the City's net assets:
Changes in Net Assets
For the Fiscal Year Ended September 30, 2005
Governmental Activities Business-Type Activities Total
Revenues 2005 2004 2005 2004 2005 2004
Program Revenues:
Charges for Services 9,209,467$ 9,525,576$ 76,316,028$ 70,518,669$ 85,525,495$ 80,044,245$
Operating Grants and Contributions 2,629,494 3,208,957 - - 2,629,494 3,208,957
Capital Grants and Contributions 4,489,883 5,266,837 1,937,320 5,179,221 6,427,203 10,446,058
General Revenues:
Property Taxes 15,888,475 14,668,641 - - 15,888,475 14,668,641
Sales and Mixed Beverage Taxes 15,705,090 15,238,995 - - 15,705,090 15,238,995
Other Taxes 4,025,419 4,166,016 - - 4,025,419 4,166,016
Interest and Investment Income 1,487,926 1,224,546 947,477 662,359 2,435,403 1,886,905
Other - 4,386 - - - 4,386
Total Revenues 53,435,754 53,303,954 79,200,825 76,360,249 132,636,579 129,664,203
Expenses
General Government 6,457,556 7,536,427 - - 6,457,556 7,536,427
Fiscal Services 2,467,187 1,953,189 - - 2,467,187 1,953,189
Police 10,666,318 9,654,447 - - 10,666,318 9,654,447
Fire 7,853,876 7,189,495 - - 7,853,876 7,189,495
Development Services 1,580,317 1,586,114 - - 1,580,317 1,586,114
Public Works 5,401,568 5,004,976 - - 5,401,568 5,004,976
Parks and Recreation 6,549,466 6,154,862 - - 6,549,466 6,154,862
Office of Technology and
Information Services 2,881,863 2,652,957 - - 2,881,863 2,652,957
Interest on Long Term Debt 3,895,520 3,448,533 - - 3,895,520 3,448,533
Unallocated Depreciation 5,430,745 2,690,998 - - 5,430,745 2,690,998
Electric Utility - - 47,815,339 41,120,750 47,815,339 41,120,750
Water Utility - - 7,908,695 6,542,184 7,908,695 6,542,184
Sewer Utility - - 7,262,208 7,214,296 7,262,208 7,214,296
Sanitation Services - - 4,931,079 4,848,591 4,931,079 4,848,591
Parking Operations - - 591,944 550,544 591,944 550,544
Other 111,916 - - 61,150 111,916 61,150
Total Expenses 53,296,332 47,871,998 68,509,265 60,337,515 121,805,597 108,209,513
Increase in Assets Before
Transfers 139,422 5,431,956 10,691,560 16,022,734 10,830,982 21,454,690
Transfers Net 8,188,725 (904,783) (8,188,725) 904,783 - -
Increase in Net Assets 8,328,147 4,527,173 2,502,835 16,927,517 10,830,982 21,454,690
Net Assets at Beginning of Year, as restated 130,319,423 125,792,250 163,127,029 146,199,512 293,446,452 271,991,762
Net Assets at End of Year 138,647,570$ 130,319,423$ 165,629,864$ 163,127,029$ 304,277,434$ 293,446,452$
Management's Discussion and Analysis
For the Fiscal Year Ended September 30, 2005
(Unaudited)
City of College Station, Texas
10
Governmental activities. Governmental activities increased the City of College Station's net assets by
$8,328,147 thereby accounting for 77 percent of the total growth in net assets. Key elements of this
increase are as follows:
• Property taxes increased $1,219,834 (8.3 percent) during the year. This is primarily the
result of the total ad valorem assessed valuations increasing by $261 million or 8.7
percent over fiscal year 2004.
• Sales and mixed beverage taxes increased $466,095 (3.1 percent) during the year. This
is attributable to continued economic growth in the area.
• Transfers increased $9,093,508 over fiscal year 2004. In fiscal year 2004 the City issued
Certificates of Obligation for both the electric and water funds. This resulted in a transfer
out from the General fund of $8,725,000 in fiscal year 2004.
The chart below illustrates the City's governmental revenues by source. For governmental
activities overall without regard to program, property tax (26 percent) and sales tax (25 percent)
are the largest sources of funds followed by charges for services (15 percent), and grants and
contributions (12 percent). All other governmental revenues account for 22 percent of all
governmental revenues.
City of College Station, Texas
Governmental Revenues By Source
$61,624,479
15%
26%
25%
7%
2%
13%
12%Charges for Services
Grants and Contributions
Property Tax
Sales Tax
Other Taxes
Investment Income
Transfers
Management's Discussion and Analysis
For the Fiscal Year Ended September 30, 2005
(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 Activities
Comparison of Program Revenues to Program Expenses
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000General GovernmentFiscal ServicesPoliceFireDevelopment ServicesPublic WorksParks and RecreationOffice of Technology and Information ServicesInterest on Long-Term DebtUnallocated DepreciationProgram Revenues
Program Expenses
Business-type activities. Business-type activities increased the City of College Station's net
assets by $2,502,835, thereby accounting for 23 percent of the total growth in net assets. Key
elements of this increase are as follows:
• With the continued growth in the area, capital contributions continued to be a major
source of revenue for the electric, water, and sewer funds. In fiscal year 2005 capital
contributions amounted to $1,937,320.
• Electric utility expenses experienced an increase of $6,694,589 or 16 percent from fiscal
year 2004. This is primarily attributable to purchased power expenses.
Revenues for the City's business-type activities are presented in the following chart. Charges for
services provided the largest share of revenues (97 percent) for the City's business-type
activities. It was followed by grants and contributions (2 percent) and investment income (1
percent).
Management's Discussion and Analysis
For the Fiscal Year Ended September 30, 2005
(Unaudited)
City of College Station, Texas
12
Business-type Revenues
$79,200,825
97%
2%1%
Charges for Services
Grants and Contributions
Investment Income
Another useful chart depicts business-type activity program revenues relative to program
expenses. That data is presented below:
Business-type Activities
Comparison of Program Revenues to Program Expenses
-
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
Electric Water Sewer Sanitation Northgate Parking
Program Revenues
Program Expenses
Management's Discussion and Analysis
For the Fiscal Year Ended September 30, 2005
(Unaudited)
City of College Station, Texas
13
FINANCIAL ANALYSIS OF THE CITY'S FUNDS
As noted previously, the City uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements.
Governmental Funds
The focus of the City's governmental funds is to provide information on near-term inflows,
outflows, and balances of resources that are available for spending. Such information is useful in
assessing the City's financing requirements. In particular, unreserved fund balance may serve as
a useful measure of a government's net resources available for spending at the end of the fiscal
year. The types of governmental funds reported by the City include the General Fund, Debt
Service Fund, and Streets Capital Projects Fund. Other governmental funds of the City are
reported as non-major funds.
As of the end of the current fiscal year, the City's governmental funds reported combined ending
fund balances of $59,413,861. Approximately 26 percent ($15,282,570) of this total amount
constitutes unreserved fund balance and is available for spending at the City's discretion. The
remainder of fund balance is reserved to indicate that it is not available for new spending because
it has already been committed as follows:
(1) To pay debt service ($2,815,959),
(2) To liquidate contracts and purchase orders of the prior period ($8,851,497),
(3) For capital improvements ($30,440,475),
(4) For permanent cemetery endowments ($1,113,033),
(5) For police criminal investigation activity ($23,664),
(6) For inventory ($56,280),
(7) For prepaids ($315,733),
(8) For Court Technology ($212,005),
(9) For Court Security ($278,369), and
(10) For Court Efficiency ($24,276).
Overall, revenues for governmental functions totaled $48,684,565 in the fiscal year ended
September 30, 2005, an increase of 2 percent or $906,496 from the fiscal year ended September
30, 2004. Expenditures for governmental functions totaling $69,537,871 increased by
approximately 3 percent ($2,090,330) from the fiscal year ended September 30, 2004. In fiscal
year 2005, expenditures for governmental functions exceeded revenues by $20,853,306. That
amount was 6 percent more than the previous year's amount of $19,669,472.
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 $9,038,345 while the total
fund balance reached $10,170,525. The City's fiscal and budgetary policies require that the
Management's Discussion and Analysis
For the Fiscal Year Ended September 30, 2005
(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 22 percent of fiscal year 2005 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 23 percent of
total general fund expenditures, while total fund balance represents 26 percent of the same
amount. The fund balance continues to meet and exceed the Fiscal and Budgetary Policy of
having 15 percent of expenditures available in fund balance.
The fund balance of the General Fund decreased by $532,427 during the current fiscal year. Key
factors in this change were as follows:
• Overall revenues were up by approximately 6 percent, primarily due to an increase in
sales tax revenue and property tax revenue that resulted from strong retail sales and new
property values on the tax rolls.
• Overall total expenditures were up by approximately 5 percent, primarily due to increases
in department spending.
The Debt Service Fund ended the fiscal year with a fund balance of $2,818,087. Of this amount,
$2,815,959 is reserved for the payment of debt service, and $2,128 is reserved for
encumbrances. The net increase in fund balance during the current fiscal year was $279,374. A
$652,117 increase in debt service revenues and other financing sources was more than enough
to cover principal retirements and interest payments.
The Streets Projects fund ended the fiscal year with a fund balance of $18,184,996. This entire
amount is either reserved for encumbrances related to current capital projects or reserved for
future capital projects. The net decrease in fund balance during the current fiscal year was
$975,320. This decrease is attributable to the expenditure of funds on streets capital projects.
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 $164,000,896. Approximately 18 percent ($29,878,715) of this total amount constitutes
unrestricted net assets. The remainder of net assets for the proprietary funds, $134,122,181, is
reported as follows:
(1) Invested in capital assets, net of related debt ($131,324,446), and
(2) Restricted for debt service ($2,797,735).
Operating revenues for proprietary activities totaled $76,262,082 for the fiscal year, an increase
of 8.7 percent or $6,087,846 from the previous fiscal year. Operating expenses increased
$8,165,928 or 14.5 percent for the same period causing operating income to decrease
$2,078,082 or 14.9 percent. The proprietary funds reported net nonoperating expenses of
$3,419,381 at the end of fiscal year 2005 as compared to net nonoperating expenses of
Management's Discussion and Analysis
For the Fiscal Year Ended September 30, 2005
(Unaudited)
City of College Station, Texas
15
$3,438,933 in the previous fiscal year. Net assets increased $2,160,186 in fiscal year 2005. This
is $14,393,936 less than the increase reported in fiscal year 2004.
Electric Fund
At the end of the fiscal year, the unrestricted net assets for the Electric Fund totaled $6,183,534.
The electric utility ended the fiscal year with working capital of $5,977,256, a decrease of 7.2
percent from fiscal year 2004. The majority of the decrease in working capital is due to an increase
in the expense for purchased power. 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, 2005, Electric Fund working capital equaled approximately
13 percent of annual operating expenses.
Electric Fund operating revenues increased by 8.5 percent ($4,038,801) during fiscal year 2005,
while operating expenses increased 16.4 percent ($6,578,783) during the same period. This
resulted in a 35 percent decrease ($2,539,982) in operating income. The increase in operating
expenses is also attributable to an increase in the expense for purchased power. The combination
of a decrease in operating income and $5.5 million in transfers out resulted in net assets for the
Electric Fund decreasing by $233,160 during the fiscal year.
Water Fund
Unrestricted net assets for the Water Fund at September 30, 2005 were $8,229,677. Working
capital in the Water Fund at the end of fiscal year 2005 was $8,497,340, an increase of
approximately 12 percent from fiscal year 2004. Water Fund working capital was 134 percent of
total operating expense and exceeds the minimum 15 percent requirement under the Council's
adopted policy.
Water Fund operating revenues increased by 16 percent ($1,289,996) during fiscal year 2005 as a
result of increased water consumption due to drier conditions as compared to fiscal year 2004.
Operating expenses increased 20 percent ($1,071,212) over fiscal year 2004. This resulted in
operating income increasing 7.4 percent to $3,183,683 in fiscal year 2005. The Water Fund's net
assets increased $1,272,188 during the fiscal year, a 57 percent decrease over the previous year.
This decrease is primarily due to lower capital contributions.
Sewer Fund
The Sewer Fund's unrestricted net assets at the end of fiscal year 2005 were $6,728,815. The
Sewer Fund ended the fiscal year with a working capital balance of $5,964,409, which was 20
percent above fiscal year 2004. Sewer Fund working capital was 102 percent of total operating
expenses and is well above the minimum requirement for the fund.
Operating revenues in the Sewer Fund were $9,689,374, a $522,934 (6 percent) increase over the
previous fiscal year. Operating expenses increased from $5,679,897 to $5,842,266 or 3 percent
while operating income rose by 10 percent from $3,486,543 to $3,847,108.
Management's Discussion and Analysis
For the Fiscal Year Ended September 30, 2005
(Unaudited)
City of College Station, Texas
16
BUDGETARY HIGHLIGHTS
The final amended budget for fiscal year 2005 totaled $179,733,732 for all funds. Of this amount
$134,040,679 (74.6 percent) was budgeted for operations and maintenance expenditures, and
$45,693,053 (25.4 percent) was budgeted for capital improvement projects.
In the General Fund the final revised budgeted change in fund balance was $315,100 lower than
the original budgeted change and the significant items that comprise this difference can be briefly
summarized as follows:
• $200,931 - Encumbrances rolled over from previous fiscal year.
• $174,906 - Appropriation for a FEMA grant received by the City of College Station.
• $53,508 - Reimbursement to the Police Department for assistance with the presidential
inauguration.
In the General Fund the actual change in fund balance was $2,547,202 higher than the final revised
budgeted change and the significant items that comprise this difference can be briefly summarized
as follows:
• $667,392 - Lower capital outlay expenditures primarily related to the delay in spending
the funds appropriated for the AM radio station, for equipment funded from grants, and
for technology projects.
• $150,585 - Additional tax revenue generated primarily from higher sales tax revenues.
• $488,200 - Due in part to lower expenditures related to economic development incentive
outlays that were budgeted for and did not occur in FY 05.
• $448,447 - Lower expenditures than budgeted in the Public Works Department due to
less spending on Facilities Maintenance projects, Street operations, and Drainage
operations.
• $220,529 - Lower expenditures in the Fire Department due in part to lower salaries and
benefits due to delays in hiring new personnel for Fire Station #5.
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 2005 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 2005 fiscal year
budget include:
• Additional resources for the addition of three police patrol officers, two communications
operators, and one police assistant,
• Funding of a new ladder truck for a future staffing of a dedicated ladder company,
• Additional resources for a code enforcement supervisor,
• Additional resources for thoroughfare rehabilitation projects,
• Additional resources for an additional drainage crew to ensure drainage right of ways are
maintained at appropriate levels,
Management's Discussion and Analysis
For the Fiscal Year Ended September 30, 2005
(Unaudited)
City of College Station, Texas
17
• Enhancement to public communications through improvements to channel 19 and streaming
video over the internet, and
• Reinstatement of the pay plan to fund the market adjustment as well as the skills and
performance component of the pay plan.
Vision Statement #2--Parks and Leisure Services
We will provide a large range of recreational and cultural arts opportunities. The 2005 fiscal
year budget provided resources to continue funding the Parks and Recreation Department at
current service levels. Additional resources were included for the following:
• Design of Veterans Park Phase II,
• Soccer field light projects at Veterans Park and Central Park, and
• Operation and maintenance.
Vision Statement #3--Planning and Development
We will provide a well-planned community. Activities related to this vision statement include
planning and development services. Additional resources were included for the following:
• Additional resources for additional planning staff, and
• Resources to continue to review annexation options.
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 year 2005 budget included
the following:
• Northgate improvements,
• Capital resources to continue the infrastructure development in Crescent Pointe,
• Funding for the development of the Spring Creek Business Park,
• Funding for the continued development of a hotel/conference center,
• Funding for an Economic Development Specialist, and
• Wolf Pen Creek Capital Projects.
Management's Discussion and Analysis
For the Fiscal Year Ended September 30, 2005
(Unaudited)
City of College Station, Texas
18
CAPITAL ASSETS
The City of College Station's investment in capital assets for its governmental and business-type
activities as of September 30, 2005 amounted to $351,756,723 (net of accumulated depreciation).
This investment in capital assets includes land, utility systems, buildings and building
improvements, improvements other than buildings, machinery and equipment, infrastructure, and
construction in progress.
Capital Assets at Year End
Net of Accumulated Depreciation
Governmental Business-Type
Activities Activities Total
Land 25,034,570$ 709,650$ 25,744,220$
Utility Systems - 160,048,489 160,048,489
Buildings and Building Improvements 14,814,974 5,157,657 19,972,631
Improvements Other than Buildings 10,733,694 - 10,733,694
Machinery and Equipment 10,120,061 53,922 10,173,983
Infrastructure 79,542,410 - 79,542,410
Construction in Progress 19,498,927 26,042,369 45,541,296
159,744,636$ 192,012,087$ 351,756,723$
Major capital projects completed by the City during the 2005 fiscal year include the following:
• Longmire Extension – Graham to Cypress Meadows ($2.8 million),
• Dominik Street Rehabilitation ($960,000),
• Greens Prairie Road Widening ($3.8 million),
• Lincoln Center Expansion ($973,000),
• Parkway Park Improvements ($50,000), and
• Basketball Cover at Jack and Dorothy Miller Park ($175,000).
Of significance is $6,427,203 in developer capital contributions during fiscal year 2005. These
contributions accounted for approximately 30 percent of the $21.5 million increase in capital
assets.
Additional information on the City's capital assets can be found in Note IV-C to the financial
statements on page 51.
Management's Discussion and Analysis
For the Fiscal Year Ended September 30, 2005
(Unaudited)
City of College Station, Texas
19
DEBT ADMINISTRATION
At the end of the 2005 fiscal year, the City of College Station had total debt outstanding of
$168,120,000. Of this amount, $88,905,000 (53 percent) comprised debt backed by the full faith
and credit of the City. The remaining debt is revenue bonds secured by specified revenue sources.
Year-End Outstanding Debt Payable
Governmental Business-Type
Activities Activities Total
General Obligation Bonds 49,800,000$ -$ 49,800,000$
Revenue Bonds - 79,215,000 79,215,000
Certificates of Obligation 39,105,000 - 39,105,000
88,905,000$ 79,215,000$ 168,120,000$
The City's total debt increased by $10,675,000 (6.8 percent) during the current fiscal year. The
change in total debt was a result of the following:
• Issuance of $5,710,000 in general obligation improvement bonds, $7,595,000 in certificates
of obligation, $8,035,000 in utility revenue system revenue bonds, and $12,995,000 in utility
system revenue refunding bonds; and
• Retirement of $2,995,000 in general obligation bonds, $3,195,000 in certificates of obligation,
and the retirement/defeasance of $17,470,000 in utility revenue bonds.
As a result of the issuance of the utility revenue system refunding bonds, the City will reduce its
total debt service payments over the next ten (10) years by approximately $1,037,232.
The City's General Obligation and Certificates of Obligation have an underlying rating of AA- by
Standard & Poors ("S&P") and Aa3 by Moody's Investors Service ("Moody's"). The underlying
ratings for the City's revenue bonds are A+ by S&P and A1 by Moody's. 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-F to the financial
statements on pages 53-57 of this report.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES
The City of College Station has continued to grow, and indicators of that growth include the
following:
• An estimated population increase of 55 percent for the period of 1990 through 2005,
• An approximate $261 million increase to the ad valorem tax base during the fiscal year,
• A local economy that has maintained an unemployment rate of less than 4 percent since 1990,
and
• Sales tax revenue that grew by 3.3 percent during the 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.
Management's Discussion and Analysis
For the Fiscal Year Ended September 30, 2005
(Unaudited)
City of College Station, Texas
20
The Fiscal Year 2006 budget was prepared with the key goal of maintaining and improving quality
of life in College Station. This is done by continuing a prudent approach to City finances, meeting
strategic priorities identified by the City Council, maintaining service quality and excellence, and
enhancing and maintaining infrastructure and public facilities needed to provide excellent services.
The ad valorem tax rate for the 2006 fiscal year is $0.4394 per $100 valuation ($0.1896 for
operations and maintenance and $0.2498 for debt service). This tax rate will meet the debt service
obligations of the City and provide operations and maintenance funding in the General Fund.
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 2006 budget includes a 4
percent revenue increase in the Water Fund and an 8 percent increase in the Electric Fund. These
rate increases are needed to meet the operating, capital and debt service coverage requirements in
the funds and to ensure continued high quality service is provided as the community continues to
grow. Residential sanitation rates were increased by 8 percent and commercial sanitation rates by
7 percent in FY06 in order to maintain existing residential and commercial sanitation service levels.
The 2006 budget does not include a rate increase in the Sewer Fund or Drainage Fund.
The fiscal year 2006 budget for capital improvements totals $50,474,565. 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 ($2.2 million),
• Street rehabilitation in the Northgate area ($270,000),
• Extension of Dartmouth Drive ($3.6 million),
• Arrington Road/Decatur extension design ($430,000),
• Barron Road Improvements ($1.0 million),
• Veteran's Park Phase II Construction ($6.2 million),
• University Park Development ($400,000),
• Wolf Pen Creek Amphitheatre Improvements ($1.0 million),
• Police Station New Addition and Renovation ($3.6 million),
• Fire Station #3 Relocation ($1.7 million),
• Northgate Gateway, water feature, and public restroom projects ($775,000),
• Water Utility Construction of Shallow Wells ($1.9 million),
• Water Plant Security Upgrades ($1.4 million),
• Lick Creek Parallel Trunk Line ($3 million),
• Phase I Northeast Trunk Expansion ($715,500), and
• Bee Creek Combined Drainage Improvements ($3.1 million).
The City plans to issue $8,912,000 in general obligation bonds from the 2003 bond authorization for
the following: $2,340,000 for street improvements, $237,000 for traffic projects, and $6,335,000 for
parks projects. The City also plans to issue $7,499,000 in certificates of obligations for the
following: $1,200,000 for street improvements, $400,000 for park projects, $1,000,000 for
Convention Center projects, $2,070,000 for cemetery projects, $2,229,000 for Business Park
projects, $300,000 for Wolf Pen Creek projects, and $300,000 for the Police Station addition. The
City also plans to issue $17,850,000 in utility revenue bonds for the following: $8,850,000 for
electric capital projects, $6,000,000 for water capital projects, and $3,000,000 for sewer capital
projects.
Management's Discussion and Analysis
For the Fiscal Year Ended September 30, 2005
(Unaudited)
City of College Station, Texas
21
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the City of College Station's
financial position for all who have an interest in the City's finances. Questions concerning any of
the information provided in this report or requests for additional financial information should be
addressed to:
City of College Station
Fiscal Services Department
ATTN: Finance and Strategic Planning Director
P.O. Box 9960
College Station, Texas 77842-9960
or visit our website at http://www.cstx.gov.
22
CITY OF COLLEGE STATION, TEXAS
Statement of Net Assets
As of September 30, 2005
Governmental Business-type
Activities Activities
Total
Assets
Equity in Cash and Cash Equivalents 23,552,655$ 7,266,383$ 30,819,038$
Equity in Investments 49,772,364 15,377,378 65,149,742
Receivables, net 3,223,076 10,247,680 13,470,756
Internal Balances (1,051,560) 1,051,560 0
Inventories 197,877 1,163,918 1,361,795
Prepaid Costs 326,730 0 326,730
Restricted Assets:
Temporarily Restricted:
Equity in Cash and Cash Equivalents 190,411 7,589,600 7,780,011
Equity in Investments 402,955 16,061,383 16,464,338
Receivables, net 0 98,048 98,048
Permanently Restricted:
Equity in Cash and Cash Equivalents 354,521 0 354,521
Equity in Investments 750,250 0 750,250
Receivables, net 6,020 0 6,020
Inventory 2,373 0 2,373
Equity in Joint Venture 0 7,206,852 7,206,852
Deferred Charges, net 0 721,754 721,754
Capital Assets:
Land and Construction in Progress 44,533,497 26,752,019 71,285,516
Other Capital Assets,
net of accumulated depreciation 115,211,139 165,260,068 280,471,207
Total Assets 237,472,308 258,796,643 496,268,951
Liabilities
Accounts Payable 2,733,155 11,128,333 13,861,488
Retainage Payable 568,407 35,721 604,128
Refundable Deposits 17,685 0 17,685
Claims Payable 894,712 0 894,712
Accrued Liabilities 1,842,091 565,681 2,407,772
Customer Construction Advances 122,556 103,383 225,939
Other Deferred Revenues 618,365 54,568 672,933
Liabilities Payable from Restricted Assets:
Accounts Payable 131 836 967
Accrued Interest Payable 551,916 639,470 1,191,386
Accrued Liabilities 0 15,836 15,836
Refundable Deposits 0 1,214,896 1,214,896
Non-Current Liabilities:
Due within one year:
Compensated Absences 166,101 19,746 185,847
Bonds and Certificates of Obligation Payable 7,285,000 4,705,000 11,990,000
Due in more than one year:
Bonds and Certificates of Obligation Payable 81,620,000 74,510,000 156,130,000
Unamortized Premium on Bonds 0 (161,869) (161,869)
Claims Payable 764,490 0 764,490
Compensated Absences 1,640,129 335,178 1,975,307
Total Liabilities 98,824,738 93,166,779 191,991,517
Net Assets
Invested in Capital Assets, net of related debt 106,460,949 132,001,489 238,462,438
Restricted for:
Debt Service 2,266,171 2,797,735 5,063,906
Perpetual Care - Nonexpendable 1,113,033 0 1,113,033
Other 910,327 0 910,327
Unrestricted 27,897,090 30,830,640 58,727,730
Total Net Assets 138,647,570$ 165,629,864$ 304,277,434$
The notes to the financial statements are an integral part of this statement.
23
CITY OF COLLEGE STATION, TEXAS
Statement of Activities
For the Year Ended September 30, 2005
Program Revenues
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions
Governmental activities:
General Government 6,457,556$ 854,753$ 2,266,677$ 0$
Fiscal Services 2,467,187 508,810 0 0
Police 10,666,318 4,008,637 84,788 0
Fire 7,853,876 638,775 278,029 0
Development Services 1,580,317 1,043,672 0 0
Public Works 5,401,568 1,110,686 0 4,489,883
Parks and Recreation 6,549,466 1,044,134 0 0
Office of Technology and Information Services 2,881,863 0 0 0
Interest on long-term debt 3,895,520 0 0 0
Unallocated Depreciation 5,430,745 0 0 0
Total governmental activities 53,184,416 9,209,467 2,629,494 4,489,883
Business-type activities:
Electric 47,815,339 51,467,169 0 1,313,745
Water 7,908,695 9,519,714 0 306,646
Sewer 7,262,208 9,697,314 0 316,929
Sanitation 4,931,079 5,151,204 0 0
Northgate Parking 591,944 480,627 0 0
Total business-type activities 68,509,265 76,316,028 0 1,937,320
Total primary government 121,693,681$ 85,525,495$ 2,629,494$ 6,427,203$
General Revenue:
Property taxes
Sales and Mixed Beverage taxes
Franchise taxes
Hotel/Motel taxes
Unrestricted investment earnings
Loss on sale of capital assets
Transfers
Total general revenues and transfers
Change in net assets
Net assets - beginning, as restated
Net assets - ending
The notes to the financial statements are an integral part of this statement.
24
Net Revenue (Expense) and
Changes in Net Assets
Governmental Business-type
Activities Activities Total
(3,336,126)$ 0$ (3,336,126)$
(1,958,377) 0 (1,958,377)
(6,572,893) 0 (6,572,893)
(6,937,072) 0 (6,937,072)
(536,645) 0 (536,645)
199,001 0 199,001
(5,505,332) 0 (5,505,332)
(2,881,863) 0 (2,881,863)
(3,895,520) 0 (3,895,520)
(5,430,745) 0 (5,430,745)
(36,855,572) 0 (36,855,572)
0 4,965,575 4,965,575
0 1,917,665 1,917,665
0 2,752,035 2,752,035
0 220,125 220,125
0 (111,317) (111,317)
0 9,744,083 9,744,083
(36,855,572) 9,744,083 (27,111,489)
15,888,475 0 15,888,475
15,705,090 0 15,705,090
1,718,491 0 1,718,491
2,306,928 0 2,306,928
1,487,926 947,477 2,435,403
(111,916) 0 (111,916)
8,188,725 (8,188,725) 0
45,183,719 (7,241,248) 37,942,471
8,328,147 2,502,835 10,830,982
130,319,423 163,127,029 293,446,452
138,647,570$ 165,629,864$ 304,277,434$
25
CITY OF COLLEGE STATION, TEXAS
Balance Sheet
Governmental Funds
As of September 30, 2005
Other Total
Streets Governmental Governmental
General Debt Service Projects Funds Funds
Assets
Equity in Cash and Cash Equivalents 3,548,356$ 912,353$ 6,100,173$ 9,388,816$ 19,949,698$
Equity in Investments 7,509,158 1,930,754 12,909,402 19,798,346 42,147,660
Receivables
Accrued Interest 58,878 8,249 90,267 139,068 296,462
Grants 90,977 0 0 289,678 380,655
Letter of Credit 25,000 0 0 0 25,000
Accounts 780,461 0 0 193,478 973,939
Taxes 1,602,973 194,827 0 0 1,797,800
Other 23,179 0 0 0 23,179
Less Allowance for Uncollectible Accounts (282,057) 0 0 (76,994) (359,051)
Due from Other Funds 65,381 0 0 0 65,381
Inventories 55,971 0 0 2,373 58,344
Prepaid Costs 0 0 315,733 0 315,733
Restricted Assets
Equity in Cash and Cash Equivalents 190,411 0 0 0 190,411
Equity in Investments 402,955 0 0 0 402,955
Total Assets 14,071,643$ 3,046,183$ 19,415,575$ 29,734,765$ 66,268,166$
Liabilities and Fund Balances
Liabilities
Accounts Payable 688,304$ 0$ 780,371$ 962,683$ 2,431,358$
Retainage Payable 0 0 278,117 290,290 568,407
Interfund Payable 0 0 0 200,000 200,000
Refundable Deposits 17,685 0 0 0 17,685
Accrued Liabilities 1,804,667 33,269 84,705 41,539 1,964,180
Customer Construction Advances 35,170 0 87,386 0 122,556
Other Deferred Revenues 1,355,292 194,827 0 0 1,550,119
Total Liabilities 3,901,118 228,096 1,230,579 1,494,512 6,854,305
Fund Balances
Reserved 1,132,180 2,818,087 18,184,996 21,996,028 44,131,291
Unreserved, Undesignated
General Fund 9,038,345 0 0 0 9,038,345
Special Revenue Funds 0 0 0 6,244,225 6,244,225
Total Fund Balances 10,170,525 2,818,087 18,184,996 28,240,253 59,413,861
Total Liabilities and Fund Balances 14,071,643$ 3,046,183$ 19,415,575$ 29,734,765$ 66,268,166$
The notes to the financial statements are an integral part of this statement.
26
CITY OF COLLEGE STATION, TEXAS
Reconciliation of Governmental Funds Balance Sheet
to the Statement of Net Assets
As of September 30, 2005
Amounts reported for governmental activities in the statement of net assets
are different because:
Total Fund Balance per balance sheet: 59,413,861$
Capital assets used in governmental activities are not financial
resources and, therefore, are not reported in the funds. 150,763,329
Other long-term assets are not available to pay for current-period
expenditures and, therefore, are deferred in the funds. 931,754
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. 18,579,554
Long-term liabilities, including bonds payable, are not due and payable in
the current period and therefore are not reported in the funds. (91,040,928)
Net Assets of governmental activities: 138,647,570$
The notes to the financial statements are an integral part of this statement.
27
CITY OF COLLEGE STATION, TEXAS
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Fiscal Year Ended September 30, 2005
Other Total
Governmental Governmental
General Debt Service Streets Projects Funds Funds
Revenues
Taxes 23,889,473$ 8,722,315$ 0$ 3,007,196$ 35,618,984$
Licenses and Permits 1,025,013 0 0 0 1,025,013
Intergovernmental 590,079 0 88,400 1,913,833 2,592,312
Charges for Services 2,480,781 0 0 153,902 2,634,683
Fines, Forfeits and Penalties 3,518,913 0 0 27 3,518,940
Special Assessments 225 0 0 1,110,461 1,110,686
Investment Income 258,048 122,434 340,358 548,361 1,269,201
Rents and Royalties 243,831 0 0 0 243,831
Loan Repayments 0 0 0 2,541 2,541
Contributions 37,082 0 0 100 37,182
Other 265,437 0 35,236 330,519 631,192
Total Revenues 32,308,882 8,844,749 463,994 7,066,940 48,684,565
Expenditures
Current
General Government 4,052,521 0 315,232 112,322 4,480,075
Fiscal Services 3,029,144 0 2,733 6,268 3,038,145
Police 10,829,081 0 0 0 10,829,081
Fire 7,964,785 0 0 0 7,964,785
Development Services 1,962,603 0 0 0 1,962,603
Public Works 6,100,247 0 0 16,994 6,117,241
Economic and Community Development 11,281 0 0 0 11,281
Parks and Recreation 6,778,068 0 0 128 6,778,196
Office of Technology and Information Services 2,500,518 0 0 0 2,500,518
Library 694,445 0 0 0 694,445
Reimbursed Administrative (6,052,138) 0 519,549 2,046,782 (3,485,807)
Contributions 595,742 0 0 1,300,000 1,895,742
Community Development Block Grant 0 0 0 275,775 275,775
Home Grant 0 0 0 439,243 439,243
Other 256,636 0 0 39,708 296,344
Capital Outlay 796,245 0 5,676,806 8,962,325 15,435,376
Debt Service
Principal Retirement 0 6,190,000 0 0 6,190,000
Interest Payments 0 3,885,075 0 0 3,885,075
Issuance Costs 0 0 39,676 78,585 118,261
Fiscal Charges 0 13,871 0 0 13,871
Intergovernmental 0 0 97,621 0 97,621
Total Expenditures 39,519,178 10,088,946 6,651,617 13,278,130 69,537,871
Deficiency of Revenues Under Expenditures (7,210,296) (1,244,197) (6,187,623) (6,211,190) (20,853,306)
Other Financing Sources (Uses)
Proceeds from Long-Term Debt 859,621 0 4,739,489 7,748,471 13,347,581
Sale of Capital Assets 12,182 0 0 0 12,182
Transfers In 7,444,644 1,523,571 472,814 2,034,990 11,476,019
Transfers Out (1,638,578) 0 0 (2,240,623) (3,879,201)
Total Other Financing Sources 6,677,869 1,523,571 5,212,303 7,542,838 20,956,581
Net Change in Fund Balances (532,427) 279,374 (975,320) 1,331,648 103,275
Fund Balances, October 1 10,702,952 2,538,713 19,160,316 26,908,605 59,310,586
Fund Balances, September 30 10,170,525$ 2,818,087$ 18,184,996$ 28,240,253$ 59,413,861$
The notes to the financial statements are an integral part of this statement.
28
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, 2005
Amounts reported for governmental activities in the statement of activities
are different because:
Net change in fund balance - total governmental funds: 103,275$
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. 9,140,704
The effect of various miscellaneous transactions involving capital
assets is to increase net assets. 4,365,785
Revenues in the statement of activities that do not provide current
financial resources are not reported as revenues in the funds. 239,256
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. (7,157,581)
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. (82,388)
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. 1,719,096
Change in Net Assets of governmental activities: 8,328,147$
The notes to the financial statements are an integral part of this statement.
29
CITY OF COLLEGE STATION, TEXAS
Statement of Net Assets
Proprietary Funds
As of September 30, 2005
Governmental
Business-type Activities - Enterprise Funds Activities
Electric Water Sewer
Other
Enterprise
Funds
Total Enterprise
Funds
Internal Service
Funds
Current Assets
Equity in Cash and Cash Equivalents 2,654,132$ 2,475,227$ 1,696,555$ 380,307$ 7,206,221$ 4,017,640$
Equity in Investments 5,616,768 5,238,164 3,590,310 804,820 15,250,062 8,502,270
Restricted Assets:
Equity in Cash and Cash Equivalents 800,715 578,093 697,540 0 2,076,348 0
Equity in Investments 1,694,501 1,223,381 1,476,158 0 4,394,040 0
Accrued Interest Receivable 51,577 20,676 25,795 0 98,048 0
Receivables:
Accrued Interest 45,722 35,737 30,078 6,705 118,242 60,548
Accounts 7,710,652 1,375,343 1,208,774 658,402 10,953,171 63,765
Notes 0 0 0 12,522 12,522 0
Other 1,099,786 0 0 0 1,099,786 10,722
Less Allowance for Uncollectible Accounts (1,695,297) (61,376) (124,135) (74,527) (1,955,335) (24,629)
Inventories 847,899 281,211 25,565 9,243 1,163,918 141,906
Prepaid Costs 0 0 0 0 0 10,997
Total Current Assets 18,826,455 11,166,456 8,626,640 1,797,472 40,417,023 12,783,219
Noncurrent Assets
Restricted Assets
Equity in Cash and Cash Equivalents 2,975,038 1,045,534 1,492,680 0 5,513,252 0
Equity in Investments 6,295,882 2,212,597 3,158,864 0 11,667,343 0
Total Restricted Assets 9,270,920 3,258,131 4,651,544 0 17,180,595 0
Advance to Other Funds 200,000 0 0 0 200,000 0
Equity in Joint Venture 0 0 0 7,206,852 7,206,852 0
Deferred Charges:
Bond Issuance Costs 276,326 278,431 357,118 0 911,875 0
Accumulated Amortization (50,884) (66,143) (73,094) 0 (190,121) 0
Total Deferred Charges 225,442 212,288 284,024 0 721,754 0
Property and Equipment:
Utility Plant 92,661,079 73,845,049 75,866,487 0 242,372,615 0
Buildings 0 0 0 5,723,063 5,723,063 746,575
Machinery and Equipment 0 0 0 1,277,329 1,277,329 24,647,812
Accumulated Depreciation (41,970,183) (21,936,686) (19,094,301) (1,788,812) (84,789,982) (15,957,751)
Construction in Progress 5,045,734 15,394,165 5,602,470 0 26,042,369 221,714
Land 0 0 0 709,650 709,650 0
Total Property and Equipment 55,736,630 67,302,528 62,374,656 5,921,230 191,335,044 9,658,350
Total Noncurrent assets 65,432,992 70,772,947 67,310,224 13,128,082 216,644,245 9,658,350
Total Assets 84,259,447 81,939,403 75,936,864 14,925,554 257,061,268 22,441,569
Liabilities
Current Liabilities
Accounts Payable 9,978,396 706,244 371,784 61,770 11,118,194 312,067
Retainage Payable 0 35,721 0 0 35,721 0
Interfund Payable 0 0 0 0 0 65,381
Accrued Liabilities 298,805 49,360 67,592 110,524 526,281 83,412
Customer Construction Advances 24,382 55,640 23,361 0 103,383 0
Other Deferred Revenues 822 0 0 53,746 54,568 0
Claims Payable 0 0 0 0 0 894,712
Payable from Restricted Assets:
Accounts Payable 836 0 0 0 836 0
Accrued Interest Payable 155,069 251,324 233,077 0 639,470 0
Accrued Liabilities 13,174 0 2,662 0 15,836 0
Refundable Deposits 1,031,701 175,596 0 7,599 1,214,896 0
Revenue Bonds 1,346,014 1,395,231 1,963,755 0 4,705,000 0
Total Current Liabilities 12,849,199 2,669,116 2,662,231 233,639 18,414,185 1,355,572
30
CITY OF COLLEGE STATION, TEXAS
Statement of Net Assets
Proprietary Funds
As of September 30, 2005
Governmental
Business-type Activities - Enterprise Funds Activities
Electric Water Sewer
Other
Enterprise
Funds
Total Enterprise
Funds
Internal Service
Funds
Noncurrent Liabilities
Claims Payable 0 0 0 0 0 764,490
Revenue Bonds 18,358,348 28,027,776 28,123,876 0 74,510,000 0
Unamortized Premium on Bonds (76,046) 25,209 (111,032) 0 (161,869) 0
Accrued Vacation 142,421 48,498 73,141 33,996 298,056 112,985
Total Noncurrent Liabilities 18,424,723 28,101,483 28,085,985 33,996 74,646,187 877,475
Total Liabilities 31,273,922 30,770,599 30,748,216 267,635 93,060,372 2,233,047
Net Assets
Invested in Capital Assets, net of related debt 46,198,978 42,507,021 36,697,217 5,921,230 131,324,446 9,658,350
Restricted for:
Debt Service 603,013 432,106 1,762,616 0 2,797,735 0
Unrestricted 6,183,534 8,229,677 6,728,815 8,736,689 29,878,715 10,550,172
Total Net Assets 52,985,525$ 51,168,804$ 45,188,648$ 14,657,919$ 164,000,896 20,208,522$
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds:1,628,968
Net assets business-type activities:165,629,864$
The notes to the financial statements are an integral part of this statement.
31
CITY OF COLLEGE STATION, TEXAS
Statement of Revenues, Expenses, and Changes in Fund Net Assets
Proprietary Funds
For the Fiscal Year Ended September 30, 2005
Governmental
Business-type Activities - Enterprise Funds Activities
Electric Water Sewer
Other Enterprise
Funds
Total Enterprise
Funds
Internal Service
Funds
Operating Revenues
Electric Sales 50,446,608$ 0$ 0$ 0$ 50,446,608$ 0$
Water Sales 0 9,070,813 0 0 9,070,813 0
Sewer Service 0 0 9,419,981 0 9,419,981 0
Garbage Collection Fees 0 0 0 5,095,630 5,095,630 0
Charges for Services 0 0 0 474,700 474,700 7,991,723
Premiums 0 0 0 0 0 6,245,459
Other 984,482 445,576 269,393 54,899 1,754,350 192,755
Total Operating Revenues 51,431,090 9,516,389 9,689,374 5,625,229 76,262,082 14,429,937
Operating Expenses
Electric Operations 42,784,102 0 0 0 42,784,102 0
Salaries and Benefits 0 1,144,338 1,580,867 1,741,608 4,466,813 2,499,462
Supplies 0 218,372 344,225 253,843 816,440 845,455
Maintenance 0 83,564 186,815 551,655 822,034 173,267
Purchased Professional Services 0 374,209 184,296 363,646 922,151 40,482
Purchased Property Services 0 967,475 564,040 1,339,327 2,870,842 101,994
Other Purchased Services 0 169,569 275,181 591,373 1,036,123 512,986
Claims 0 0 0 0 0 4,125,312
Administration Fees 0 0 0 0 0 418,907
Premiums 0 0 0 0 0 739,241
Reimbursed Administrative 0 1,458,859 728,985 495,708 2,683,552 1,077,005
Depreciation 3,929,807 1,903,529 1,929,800 178,055 7,941,191 2,743,536
Other 0 12,791 48,057 28,024 88,872 84,910
Total Operating Expenses 46,713,909 6,332,706 5,842,266 5,543,239 64,432,120 13,362,557
Operating Income 4,717,181 3,183,683 3,847,108 81,990 11,829,962 1,067,380
Nonoperating Revenues (Expenses)
Investment Income 368,643 305,746 242,803 27,178 944,370 221,833
Reimbursed Expenses 36,079 3,325 7,940 775 48,119 30,060
Earnings in Joint Venture 0 0 0 (91,031) (91,031) 0
Interest Expense (824,955) (1,336,447) (1,536,060) 0 (3,697,462) 0
Other, Net (353,291) (275,257) 35,898 (30,727) (623,377) 151,575
Total Nonoperating Revenues (Expenses) (773,524) (1,302,633) (1,249,419) (93,805) (3,419,381) 403,468
Income (Loss) Before Capital Contributions
and Transfers 3,943,657 1,881,050 2,597,689 (11,815) 8,410,581 1,470,848
Capital Contributions and Transfers
Capital Contributions 1,313,745 306,646 316,929 0 1,937,320 0
Transfers In 0 0 0 0 0 1,007,076
Transfers Out (5,490,562) (915,508) (1,180,191) (601,454) (8,187,715) (416,179)
Total Capital Contributions and Transfers (4,176,817) (608,862) (863,262) (601,454) (6,250,395) 590,897
Change in Net Assets (233,160) 1,272,188 1,734,427 (613,269) 2,160,186 2,061,745
Beginning Net Assets, as restated 53,218,685 49,896,616 43,454,221 15,271,188 18,146,777
Ending Net Assets 52,985,525$ 51,168,804$ 45,188,648$ 14,657,919$ 20,208,522$
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds: 342,649
Change in net assets of business-type activities:2,502,835$
The notes to the financial statements are an integral part of this statement.
32
33
CITY OF COLLEGE STATION, TEXAS
Statement of Cash Flows
Proprietary Funds
For the Fiscal Year Ended September 30, 2005
Governmental
Business-type Activities - Enterprise Funds Activities
Electric Water Sewer
Other
Enterprise
Funds
Total Enterprise
Funds
Internal Service
Funds
Cash Flows from Operating Activities:
Cash Received from Customers 50,023,258$ 9,231,314$ 9,543,641$ 5,609,463$ 74,407,676$ 14,607,587$
Cash Payments to Suppliers for Goods and Services (36,374,549) (2,925,414) (2,070,633) (3,619,368) (44,989,964) (7,930,811)
Cash Payments to Employees for Services (2,779,225) (1,136,168) (1,550,075) (1,747,028) (7,212,496) (2,465,143)
Customer Deposits Received 49,655 16,385 0 4,354 70,394 0
Cash Received for Reimbursed Expenses 36,079 3,325 7,940 100 47,444 30,060
Cash Received for Miscellaneous Revenues 0 0 35,898 5,827 41,725 1,390
Cash Received from Other Funds 0 0 0 0 0 33,599
Cash Paid for Miscellaneous Expenses (496,758) (133,143) 19,853 (36,821) (646,869) (57,081)
Net Cash Provided by Operating Activities 10,458,460 5,056,299 5,986,624 216,527 21,717,910 4,219,601
Cash Flows from Noncapital Financing Activities:
Transfers In from Other Funds 0 0 0 0 0 1,007,076
Transfers Out to Other Funds (5,490,562) (915,508) (1,180,191) (601,454) (8,187,715) (416,179)
Net Cash (Provided) Used by Noncapital Financing Activities (5,490,562) (915,508) (1,180,191) (601,454) (8,187,715) 590,897
Cash Flows from Capital and Related Financing Activities:
Acquisition and Construction of Capital Assets (4,425,852) (5,648,422) (2,851,185) 0 (12,925,459) (3,506,648)
Proceeds from Sale of Assets 0 0 0 0 0 30,084
Principal Paid on Revenue Bonds (1,248,450) (1,266,750) (1,894,800) 0 (4,410,000) 0
Interest Paid on Revenue Bonds (801,834) (1,302,183) (1,559,104) 0 (3,663,121) 0
Proceeds from Revenue Bonds 3,350,000 4,600,000 0 0 7,950,000 0
Net Cash Used by Capital and Related Financing Activities (3,126,136) (3,617,355) (6,305,089) 0 (13,048,580) (3,476,564)
Cash Flows from Investing Activities:
Purchase of Investments (33,687,234) (21,579,879) (20,833,684) (2,081,278) (78,182,075) (21,017,936)
Proceeds from Sale and Maturities of
Investment Securities 33,828,508 22,114,946 22,906,316 2,464,849 81,314,619 20,974,612
Investment Income 367,960 308,159 257,594 29,090 962,803 217,426
Net Cash Provided by Investing Activities 509,234 843,226 2,330,226 412,661 4,095,347 174,102
Net Increase in Cash and Cash Equivalents 2,350,996 1,366,662 831,570 27,734 4,576,962 1,508,036
Cash and Cash Equivalents, Oct. 1 4,078,889 2,732,192 3,055,205 352,573 10,218,859 2,509,604
Cash and Cash Equivalents, Sept. 30 6,429,885$ 4,098,854$ 3,886,775$ 380,307$ 14,795,821$ 4,017,640$
34
CITY OF COLLEGE STATION, TEXAS
Statement of Cash Flows
Proprietary Funds
For the Fiscal Year Ended September 30, 2005
Governmental
Business-type Activities - Enterprise Funds Activities
Electric Water Sewer
Other
Enterprise
Funds
Total Enterprise
Funds
Internal Service
Funds
Reconciliation of Operating Income to Net Cash
Provided by Operating Activities:
Operating Income 4,717,181$ 3,183,683$ 3,847,108$ 81,990$ 11,829,962$ 1,067,380$
Adjustment to Reconcile Operating Income to Net
Cash Provided by Operating Activities:
Depreciation, Bad Debt Expense, Inventory Loss 3,929,807 1,903,529 1,929,800 178,055 7,941,191 2,743,536
Provision for Uncollectible Accounts 180,432 20,921 38,264 22,974 262,591 0
Miscellaneous Nonoperating Revenues 36,079 3,325 43,838 5,927 89,169 31,450
Miscellaneous Nonoperating Expenses (496,758) (133,143) 19,853 (36,821) (646,869) (11,149)
Changes in Assets and Liabilities:
Change in Accounts Receivable (1,407,832) (285,075) (145,733) (69,512) (1,908,152) 189,233
Change in Deferred Revenues 0 0 0 53,746 53,746 0
Change in Inventory 15,548 10,974 (5,014) 1,001 22,509 (40,125)
Change in Prepaid Costs 0 0 0 0 0 1,378
Change in Accounts Payable 3,410,511 327,530 227,716 (38,842) 3,926,915 71,237
Change in Due to Other Funds 0 0 0 0 0 (12,333)
Change in Claims Payable 0 0 0 0 0 144,675
Change in Accrued Liabilities 23,004 7,588 18,414 19,075 68,081 12,495
Change in Refundable Deposits 49,655 16,385 0 4,354 70,394 0
Change in Accrued Vacation 833 582 12,378 (5,420) 8,373 21,824
Total Adjustments 5,741,279 1,872,616 2,139,516 134,537 9,887,948 3,152,221
Net Cash Provided by Operating Activities 10,458,460$ 5,056,299$ 5,986,624$ 216,527$ 21,717,910$ 4,219,601$
Noncash Operating, Financing, Capital and Investing Activities: During the Fiscal year the Enterprise Fund added contributed capital in the
amount of $1,937,320. Adjustments at 9/30/05 to investments to record income accrual and fair value changes were as follows:
Enterprise Fund ($299,835) and Internal Service Funds, ($97,777).
The notes to the financial statements are an integral part of this statement.
35
36
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2005
City of College Station, Texas
37
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
as soon as they are both measurable and available. Revenues are considered to be available
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2005
City of College Station, Texas
38
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.
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,
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2005
City of College Station, Texas
39
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
GASB Statement No. 40 – Deposit and Investment Risk Disclosures – An Amendment of
GASB Statement No. 3 (“GASB 40”)
GASB Statement No. 40 reduces the custodial credit risk disclosure requirements of GASB
Statement No. 3, it eliminates the activity disclosures previously mandated by GASB Statement
No. 3, and it introduces a variety of new investment-related disclosures.
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2005
City of College Station, Texas
40
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, investment pools, money market mutual funds, and agency
securities notes with original maturities of three months or less when purchased.
All cash, except for petty cash accounts, is deposited with the City's depository bank in interest
bearing accounts or is invested.
The City uses a pooling method to account for cash and cash equivalents. Equity in cash and
cash equivalents and interest income from the cash pool is allocated to the participating funds
on a monthly basis. The amount of the allocation is determined by calculating a ratio of each
fund's equity in the pool to the total pool.
Investments
Investments are made in accordance with the City's Investment Policy which was adopted by
the City Council in October 2005. This policy is applicable to all City funds and permits
investment in obligations of the U.S. Government or its agencies, repurchase agreements,
commercial paper, certificates of deposit, guaranteed investment contracts, public funds
investment pools, and money market mutual funds. This policy states that the City Manager
shall designate the City’s Investment Officer with whom responsibility and authority for
investment transactions reside.
The investments purchased under the provisions of the Investment Policy are managed to
maintain liquidity for meeting the City's needs for cash and to limit potential market risks in
periods of rising interest rates which depress the market value of securities. As a guideline,
maturity of securities should not exceed five years for cash management purposes, with an
optimum weighted average maturity of less than two years. Investments in securities of a
longer maturity than two years are considered prudent for funds maintained for capital
construction and debt service funds, if necessary to meet projected disbursement schedules.
As a general guideline, the City’s cash management portfolio is designed with the objective of
meeting, over the course of full market cycles, the average return on three-month U.S. Treasury
Bills, or the average rate of federal funds, whichever is higher. These indices are considered
benchmarks for riskless investment transactions and therefore comprise a standard for the
portfolio's rate of return. The investment program seeks to augment rates of return above this
level. In a diversified portfolio, measured losses are inevitable and must be considered within
the context of the overall portfolio. The objective in investment of construction funds is at least
to match inflation increases in construction costs.
Active portfolio management includes the practice of selling securities prior to maturity and
using the proceeds to purchase other securities. Such "swaps" are performed for a variety of
valid reasons: to lengthen maturities as interest rates rise, to secure market profits and shorten
maturities as interest rates fall, and to take advantage of the differences in relative yield
between different types of securities and varying maturities. "Swap" analysis is the
responsibility of the City's Investment Officer and the decision to execute the "swap" rests with
him. To protect the portfolio from imprudent trading, no security may be sold until such time as
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2005
City of College Station, Texas
41
the current market value of the security plus interest earned from date of purchase is at least
equal to the purchase price of that security.
State statutes authorize the City to invest in fully-insured time deposits, direct debt securities of
the United States or its agencies, and fully collateralized repurchase agreements. The
repurchase agreements must be purchased pursuant to a master repurchase agreement which
specifies that the transaction be held in a safekeeping account subject to the control and
custody of the City.
Investments in security repurchase agreements may be made only with the City's depository
bank, with state or national banks domiciled in the state of Texas, or with securities dealers
reporting to the Federal Reserve Bank of New York ("Primary Dealers"). All securities are
purchased delivery-vs.-payment and held in the City's name in a safekeeping account at JP
Morgan Chase Bank.
Investments of all funds consist mainly of Agency securities, a money market mutual fund with
Fidelity, and investments in Texpool’s public funds investment pool. Investments are stated at
fair value in accordance with GASB Statement No. 31, Accounting and Financial Reporting for
Certain Investments and for External Investment Pools.
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, 2005,
are recorded as prepaid costs with a reserve for prepaid items recognized in the governmental
funds in the fund level financial statements to signify that a portion of fund balance is not
available for other subsequent expenditures.
Interfund Transactions and Receivables/Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding
at the end of the fiscal year are referred to as either "due to/from other funds" (i.e., the current
portion of interfund loans) or "advances to/from other funds" (i.e., the non-current portion of
interfund loans). All other outstanding balances between funds are reported as "due to/from
other funds." Any residual balances outstanding between the governmental activities and
business-type activities are reported in the government-wide financial statements as "internal
balances."
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
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2005
City of College Station, Texas
42
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 technology funds, Municipal Court efficiency time payment fee funds,
Municipal Court security 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 $5,000 and an estimated useful
life in excess of three years. Such assets are recorded at historical cost or estimated historical
cost if purchased or constructed. Donated capital assets are recorded at estimated fair market
value at the date of donation.
Assets owned by the electric utility are capitalized in accordance with Federal Energy
Regulatory Commission (FERC) guidelines. Furthermore, assets owned by either the water or
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.
Depreciation of all assets is recorded and calculated using the straight-line method over the
following estimated useful lives:
Electric System 1-50 Years
Water System 2-50 Years
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
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.
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2005
City of College Station, Texas
43
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.
F. 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.
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2005
City of College Station, Texas
44
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 $79,233,709 difference are as follows:
When capital assets (land, buildings, equipment, etc.) that are to be used
in governmental activities are purchased or constructed, the costs of
those assets are reported as expenditures in governmental funds.
However, the statement of net assets includes those capital assets
among the assets of the City as a whole.
Cost of Capital Assets 238,877,586$
Accumulated Depreciation (88,114,257)
Net Capital Assets 150,763,329$
Long-term liabilities applicable to the City's governmental activities are
not due and payable in the current period and, accordingly, are not
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 (88,905,000)$
Accrued Interest Payable (551,916)
Compensated Absences (1,584,012)
(91,040,928)$
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 358,587$
Deferred Emergency Medical Services Revenue 551,371
Paving Assessment Revenue 21,796
931,754$
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2005
City of College Station, Texas
45
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.
18,579,554$
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 $9,140,704 difference are as follows:
Capital Outlay 15,433,007$
Depreciaiton Expense (6,292,303)
Net Adjustment to increase net changes in fund balances-
total governmental funds to arrive at changes in net assets
of governmental activities 9,140,704$
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 $4,365,785 difference are as follows:
Donated Capital Assets 4,489,883$
Sale of Capital Assets (124,098)
The net effect of miscellaneous capital asset transactions
increase net assets in the statement of activities, but do not
appear in the governmental funds because they are not
financial resources. 4,365,785$
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 ($7,157,581) difference are as follows:
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2005
City of College Station, Texas
46
Debt issued or incurred:
Issuance of General Obligation Bonds
and Certificates of Obligation (13,347,581)$
Principal Retirement 6,190,000
Net Adjustment to decrease net changes in fund balances-
total governmental funds to arrive at changes in net assets of
governmental activities (7,157,581)$
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 ($82,388) difference are as follows:
Compensated Absences (71,943)$
Accrued Interest (10,445)
Net Adjustment to decrease net changes in fund balances-
total governmental funds to arrive at changes in net assets of
governmental activities (82,388)$
III. Stewardship, Compliance, and Accountability
A. Budgetary Information
The Council approved one budget amendment during fiscal year 2005. This budget
amendment included the following appropriations:
Collection System Rehabilitation 235,000$
Mobile Data Terminal Replacements 90,000
Lincoln Center Donation 2,500
Remote Arraignment 20,000
Presidential Innaugural Reimbursement 53,508
Property Claim Costs 175,000
Fire FEMA Grant 174,906
BVSWMA Land Purchase 1,057,200
1,808,114$
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.
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2005
City of College Station, Texas
47
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
2005, and the funds in which they occurred are as follows:
Fund Amount
Parks Escrow 165,662$
Unemployment 8,454
Print/Mail 44,353
Fleet Maintenance 54,114
Debt Service 8,972
Business Park 148,462
Higher than expected capital outlay expenditures primarily resulted in the $165,662 excess in
the Parks Escrow fund. Higher than expected claims expenses resulted in the $8,454 excess
in the Unemployment fund. Higher than expected supplies, advertising, postage, and freight
expenses resulted in the $44,353 excess in the Print/Mail fund. Higher than expected salaries
and benefits, maintenance, and other operating expenses resulted in the $54,114 excess in the
Fleet Maintenance fund. Higher than expected interest payments resulted in the $8,972 excess
in the Debt Service fund. Higher than expected capital outlay and debt issuance cost expenses
resulted in the $148,462 excess in the Business Park fund.
IV. Detailed Notes on All Funds
A. Cash and Investments
Cash and investments are accounted for within the pooled cash fund of the City. The City
records investments at fair value in accordance with GASB Statement No. 31, Accounting and
Financial Reporting for Certain Investments and for External Investment Pools.
Cash and cash equivalents, investment balances and interest income are allocated to the City’s
participating funds on a monthly basis. The amount of the allocation is based on each fund's
proportional equity to total pooled equity.
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2005
City of College Station, Texas
48
As of September 30, 2005 the City had the following investments:
Weighted Average
Fair Value Maturity (days)
Bank Demand Accounts 850,204$ 1
U.S. Agency Bonds 82,364,330 432
Texas Local Government Investment Pool 36,452,103 1
Fidelity Money Market Mutual Fund 1,651,263 1
121,317,900$
Portfolio Weighted Average Maturity 294
Interest rate risk. In accordance with the City's Investment Policy, interest rate risk is managed
by limiting the weighted average maturity of the investment portfolio to two years (approximately
720 days) or less and by limiting the maximum maturity of any security purchased to five years
or less.
Credit risk. Investments authorized by the City’s policy are those approved by the revised State
of Texas Public Funds Investment Act of 1997 and the Texas Public Collateral Act of 1989.
These investments include the following:
Obligations of the United States or its agencies and instrumentalities;
Direct obligations of the State of Texas or its agencies;
Other obligations, the principal and interest on which is unconditionally
guaranteed or insured by the State of Texas or the United States or its
agencies;
Obligations of states, agencies, counties, cities, and other political subdivisions
of any state having been rated as to investment quality by a nationally
recognized investment rating firm and having received a rating of not less that
“A” or its equivalent;
Certificates of deposit issued by state and national banks domiciled in Texas
that are secured by obligations qualified as acceptable collateral;
Certificates of deposit issued by savings and loan associations domiciled in
Texas that are secured obligations qualified as acceptable collateral;
Repurchase agreements or reverse repurchase agreements;
Commercial paper with a stated maturity of 270 days or less from the date of
issuance that is rated not less than “A-1,” “P-1,” or its equivalent;
Money market mutual funds that are SEC registered no-load funds with dollar-
weighted average portfolio maturity of 120 days or less;
Guaranteed investment contracts; or
Public funds investment pools.
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2005
City of College Station, Texas
49
As of September 30, 2005 the City’s investments were rated by Standard & Poor's and Moody's
as follows:
S&P Moody's
Texpool AAAm NA*
Fidelity Money Market Mutual Fund AAAm Aaa
Federal Home Loan Bank AAA Aaa**
Federal National Mortgage Association AAA Aaa
Federal Farm Credit Bank AAA Aaa
*Texpool is only rated by S&P.
**FHLB Cusip 3133XCRR6 is only rated by S&P.
Credit concentration. With the exception of U.S. Treasury securities and authorized pools, the
City's Investment Policy limits the investment in a single security type or with a single financial
institution to 30%. It also limits the overall investment in Federal Agency securities to 70%. At
September 30, 2005 the issuers whose securities represented more than 5% of the City's
investment portfolio were as follows: the Federal Home Loan Bank (31%), the Federal National
Mortgage Association (22.7%), and the Federal Farm Credit Banks (14.3%). The 31%
investment in the Federal Home Loan Bank exceeds the policy limit by 1%. This situation will
be corrected in the first quarter of fiscal year 2006 when the City’s investment portfolio has
$8,000,000 in Federal Home Loan Bank securities maturing.
Custodian credit risk - deposits. In the case of deposits, this is the risk that in the event of a
bank failure, the government's deposits may not be returned to it. The City of College Station's
City Council has approved a depository services contract which governs its depository
relationship. This contract requires that deposits not covered by depository insurance be
collateralized at 105%.
Custodian credit risk - investments. For an investment, this is the risk that, in the event of the
failure of the counterparty, the government will not be able to recover the value of its
investments or collateral securities that are in the possession of an outside party. The City's
investment portfolio requires that all security transactions be conducted on a Delivery-vs.-
Payment basis and that all securities be held by a third party custodian and evidenced by
safekeeping receipts.
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2005
City of College Station, Texas
50
B. Receivables
Receivables as of year end for the City's individual major funds and nonmajor and internal
service funds in the aggregate, including the applicable allowances for uncollectible accounts,
are as follows:
Internal
Governmental Activities: Debt Streets Service Fund
General Service Projects Nonmajor Allocation Total
Taxes:
Property 163,759$ 194,827$ -$ -$ -$ 358,586$
Beverage 72,109 - - - - 72,109
Sales 1,367,105 - - - - 1,367,105
Subtotal Taxes 1,602,973 194,827 - - - 1,797,800
Accrued Interest 58,878 8,249 90,267 139,068 59,732 356,194
Grants 90,977 - - 289,678 - 380,655
Accounts/Charges for Services 780,461 - - 193,478 37,387 1,011,326
Miscellaneous 48,179 - - - - 48,179
Total Gross Governmental 2,581,468 203,076 90,267 622,224 97,119 3,594,154
Less Allowance for
Uncollectible Accounts (282,057) - - (76,994) (6,007) (365,058)
Net Total Receivables 2,299,411$ 203,076$ 90,267$ 545,230$ 91,112$ 3,229,096$
Business-type Activities:Internal
Service Fund
Electric Water Sewer Nonmajor Allocation Total
Accrued Interest 97,299$ 56,413$ 55,873$ 6,705$ 816$ 217,106$
Accounts/Charges for Services 7,710,652 1,375,343 1,208,774 658,402 26,378 10,979,549
Miscellaneous 1,099,786 - - 12,522 10,722 1,123,030
Total Gross Major Enterprise 8,907,737 1,431,756 1,264,647 677,629 37,916 12,319,685
Less Allowance for
Uncollectible Accounts (1,695,297) (61,376) (124,135) (74,527) (18,622) (1,973,957)
Net Total Receivables 7,212,440$ 1,370,380$ 1,140,512$ 603,102$ 19,294$ 10,345,728$
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 358,586$ -$ 358,586$
Special Assessments 21,796 - 21,796
Fines and Penalties - 593,366 593,366
Emergency Services 551,371 - 551,371
Other 25,000 - 25,000
956,753$ 593,366$ 1,550,119$
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2005
City of College Station, Texas
51
C. Capital Assets
Capital asset activity for the year ended September 30, 2005 was as follows:
Beginning Ending
Governmental Activities Balance Increases Decreases Balance
Capital Assets, Not Being Depreciated
Land 24,136,626$ 897,944$ -$ 25,034,570$
Construction in Progress 15,086,813 14,426,032 (10,013,918) 19,498,927
Total Capital Assets, Not Being Depreciated 39,223,439 15,323,976 (10,013,918) 44,533,497
Capital Assets, Being Depreciated
Buildings and Building Improvements 19,383,269 911,208 - 20,294,477
Improvements Other Than Buildings 15,679,147 2,071,881 - 17,751,028
Machinery and Equipment 23,101,825 4,374,557 (907,566) 26,568,816
Infrastructure 143,002,400 10,905,836 (144,300) 153,763,936
Total Capital Assets, Being Depreciated 201,166,641 18,263,482 (1,051,866) 218,378,257
Less Accumulated Depreciation for:
Buildings and Building Improvements 5,036,579 442,924 - 5,479,503
Improvements Other Than Buildings 6,343,085 674,249 - 7,017,334
Machinery and Equipment 14,314,407 3,027,837 (893,489) 16,448,755
Infrastructure 69,414,394 4,827,334 (20,202) 74,221,526
Total Accumulated Depreciation 95,108,465 8,972,344 (913,691) 103,167,118
Total Capital Assets Being Depreciated, Net 106,058,176 9,291,138 (138,175) 115,211,139
Governmental Type Activities Capital Assets, Net 145,281,615$ 24,615,114$ (10,152,093)$ 159,744,636$
Beginning Ending
Business-Type Activities Balance Increases Decreases Balance
Capital Assets, Not Being Depreciated
Land 709,650$ -$ -$ 709,650$
Construction in Progress 29,106,881 13,044,442 (16,108,954) 26,042,369
Total Capital Assets, Not Being Depreciated 29,816,531 13,044,442 (16,108,954) 26,752,019
Capital Assets, Being Depreciated
Electric System 89,402,015 5,253,839 (412,842) 94,243,012
Water System 72,792,185 1,064,521 (11,657) 73,845,049
Wastewater System 64,163,198 11,703,332 (42) 75,866,488
Buildings and Building Improvements 5,723,063 - - 5,723,063
Machinery and Equipment 1,278,601 - (1,272) 1,277,329
Total Capital Assets, Being Depreciated 233,359,062 18,021,692 (425,813) 250,954,941
Less Accumulated Depreciation for:
Electric System 39,344,238 3,803,220 (272,386) 42,875,072
Water System 20,060,712 1,880,290 (4,316) 21,936,686
Wastewater System 17,227,343 1,866,967 (8) 19,094,302
Buildings and Building Improvements 422,901 142,505 - 565,406
Machinery and Equipment 1,189,129 35,550 (1,272) 1,223,407
Total Accumulated Depreciation 78,244,323 7,728,532 (277,982) 85,694,873
Total Capital Assets Being Depreciated, Net 155,114,739 10,293,160 (147,831) 165,260,068
Business Type Activities Capital Assets, Net 184,931,270$ 23,337,602$ (16,256,785)$ 192,012,087$
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2005
City of College Station, Texas
52
Depreciation expense was charged to governmental activities of the City as follows:
Development Services 9,967$
Fire 46,780
Fiscal Services 13,087
General Government 21,018
Office of Technology and Information Services 191,174
Parks and Recreation 507,304
Police 56,682
Public Works 15,546
Non-departmental 5,430,745
Capital Assets Held by the City's Internal
Service Funds 2,680,039
Total Depreciation Expense 8,972,342$
D. Interfund Transactions
Transfers between funds during the year were as follows:
Governmental Business-type
Transfers In Transfers Out Activities, net Activities, net
General Fund 7,444,644$ (1,638,578)$ 5,806,066$ -$
Debt Service Fund 1,523,571 - 1,523,571 -
Special Revenue Funds:
Community Development - (604,098) (604,098) -
Convention Center 1,200,000 - 1,200,000 -
WPC TIF - (436,525) (436,525) -
Capital Projects Funds:
Business Park - (1,200,000) (1,200,000) -
General Government Projects 327,470 - 327,470 -
Parks Projects 507,520 - 507,520 -
Streets Projects 472,814 - 472,814 -
Enterprise Funds:
Electric - (5,490,562) - (5,490,562)
Water - (915,508) - (915,508)
Wastewater - (1,180,191) - (1,180,191)
Sanitation - (401,359) - (401,359)
Parking - (200,095) - (200,095)
Internal Service Funds:
Communication Services - (505) (505) -
Equipment Replacement 859,621 (414,538) 445,083 -
Fleet Maintenance 147,455 - 147,455 -
Print/Mail - (126) (126) -
Utility Billing - (1,010) - (1,010)
12,483,095$ (12,483,095)$ 8,188,725$ (8,188,725)$
Transfers are used to (1) move revenues from the funds with collection authorization to the debt
service fund as debt service principal and interest payments become due, (2) move revenues
from enterprise funds to the general fund to record the return on the investment, (3) move
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2005
City of College Station, Texas
53
revenues from enterprise funds to the general fund for economic development activity, (4) move
unrestricted general fund revenues to finance various programs that the government must
account for in other funds in accordance with budgetary authorizations.
The composition of due to/due from balances as of September 30, 2005 is as follows:
Due To Due From Amount
General Fund Print/Mail 65,381$
Electric Fund Hotel/Motel Tax Fund 200,000$
The outstanding balance between the general fund and the print/mail funds represents a
working capital loan that the general fund expects to collect in the subsequent year. The
outstanding balance between the electric fund and the hotel/motel tax fund represents an
amount related to an economic development project that is expected to be completed in fiscal
year 2006.
E. Deferred Charges
See Note IV B.
F. Long-Term Debt
A summary of long-term debt transactions, including current portion, for the year ended
September 30, 2005 is as follows:
Amounts
Beginning Incurred/ Matured/ Ending Due Within
Balance Issued Retired Balance One Year
Governmental Activities:
General Obligation Bonds 47,085,000$ 5,710,000$ 2,995,000$ 49,800,000$ 3,340,000$
Certificates of Obligation 34,705,000 7,595,000 3,195,000 39,105,000 3,945,000
Accrued Vacation 1,681,294 1,159,248 1,034,312 1,806,230 166,101
Governmental Activity
Long Term Debt 83,471,294$ 14,464,248$ 7,224,312$ 90,711,230$ 7,451,101$
Business Type Activities:
Utility Revenue Bonds 75,655,000$ 21,030,000$ 17,470,000$ 79,215,000$ 4,705,000$
Accrued Vacation:
Electric Fund 141,590 133,561 132,730 142,421 7,921
Water Fund 47,916 41,097 40,515 48,498 2,705
Sewer Fund 60,763 75,500 63,122 73,141 4,077
Other 81,783 98,786 89,705 90,864 5,043
Business Type Activity
Long Term Debt 75,987,052$ 21,378,944$ 17,796,072$ 79,569,924$ 4,724,746$
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2005
City of College Station, Texas
54
Internal service funds predominantly serve the governmental funds. All internal service funds,
except for the utility billing fund, are included as part of the above totals for governmental
activities. At year end $56,117 of internal service funds’ accrued vacation was included in
governmental activities, and $56,868 of accrued vacation for the utility billing fund was included
in business type activities. For the governmental activities, accrued vacation is generally
liquidated by the general fund.
Long-term debt at September 30, 2005 includes the following individual issues (not including
unamortized premiums or discounts):
Interest Issue Maturity Original Net
Rate (%) Date Date Issue Retirement Outstanding
General Obligation Bonds:
1996 Issue and Refunding 4.70-7.50 12/1/96 2/15/15 11,845,000$ 8,190,000$ 3,655,000$
1998 Issue 4.50-6.50 4/1/98 2/15/17 6,200,000 1,485,000 4,715,000
1999 Issue 3.40-5.40 4/15/99 2/15/17 6,230,000 1,460,000 4,770,000
2000 Issue 5.00-7.00 4/13/00 2/15/18 8,460,000 2,180,000 6,280,000
2001 Issue 5.00-7.00 8/1/01 2/15/17 4,140,000 1,735,000 2,405,000
2002 Issue 4.25-6.25 3/1/02 2/15/21 6,445,000 1,100,000 5,345,000
2003 Issue 3.00-5.00 7/9/03 2/15/23 4,790,000 180,000 4,610,000
2004 Issue 2.00-5.00 5/1/04 2/15/24 12,940,000 630,000 12,310,000
2005 Issue 4.00-6.00 5/26/05 2/15/25 5,710,000 - 5,710,000
66,760,000$ 16,960,000$ 49,800,000$
Certificates of Obligation:
2000 Issue 5.00-7.00 4/13/00 2/15/18 4,050,000$ 1,630,000$ 2,420,000$
2000A Issue 4.75-6.75 8/1/00 2/15/20 8,100,000 2,485,000 5,615,000
2001 Issue 3.50-5.00 8/2/01 2/15/20 3,650,000 1,860,000 1,790,000
2002 Issue 3.50-5.125 3/1/02 2/15/20 14,480,000 3,070,000 11,410,000
2003 Issue 2.50-3.25 12/5/02 2/15/08 1,000,000 385,000 615,000
2003A Issue 3.00-4.25 7/9/03 2/15/23 780,000 30,000 750,000
2004 Issue 2.00-5.00 5/1/04 2/15/24 9,415,000 505,000 8,910,000
2005 Issue 3.00-5.00 5/26/05 2/15/25 7,595,000 - 7,595,000
49,070,000$ 9,965,000$ 39,105,000$
Utility Revenue Bonds:
1995 Issue 5.25-6.25 8/1/95 2/1/16 6,000,000$ 5,400,000$ 600,000$
1996 Issue 4.15-5.60 12/1/96 2/1/17 10,110,000 8,600,000 1,510,000
1998 Issue 4.55-6.50 4/1/98 2/1/17 2,700,000 1,995,000 705,000
2000 Issue 5.00-7.00 4/13/00 2/15/18 10,500,000 6,615,000 3,885,000
2001 Issue 3.50-5.50 8/1/01 2/15/21 23,500,000 2,840,000 20,660,000
2002 Issue 4.00-6.00 3/1/02 2/15/22 18,215,000 1,670,000 16,545,000
2003 Issue 3.50-4.25 12/5/02 2/1/14 11,160,000 1,545,000 9,615,000
2003A Issue 2.50-4.25 7/9/03 2/15/23 4,850,000 185,000 4,665,000
2005 Issue 3.50-5.50 5/26/05 2/1/25 8,035,000 - 8,035,000
2005A Issue 3.00-5.25 8/18/05 2/1/18 12,995,000 - 12,995,000
108,065,000$ 28,850,000$ 79,215,000$
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2005
City of College Station, Texas
55
The annual requirements to amortize debt outstanding as of September 30, 2005 are as
follows. Due to the nature of the obligation for accrued vacation, annual requirements to
amortize such obligations are not determinable and have not been included in the following
summary:
Governmental Activities
General Obligation Certificates of Obligation
Year Ended
September 30, Principal Interest Principal Interest
2006 3,340,000$ 2,299,382$ 3,945,000$ 1,779,255$
2007 2,995,000 2,084,029 3,090,000 1,532,012
2008 3,090,000 1,954,873 2,960,000 1,402,998
2009 3,220,000 1,814,316 1,940,000 1,303,959
2010 3,385,000 1,659,987 2,030,000 1,226,832
2011-2015 17,245,000 5,823,499 9,695,000 4,904,607
2016-2020 11,230,000 2,277,975 11,565,000 2,347,179
2021-2025 5,295,000 486,044 3,880,000 398,528
49,800,000$ 18,400,105$ 39,105,000$ 14,895,370$
Business-Type Activities
Electric Water Sewer
Year Ended
September 30, Principal Interest Principal Interest Principal Interest
2006 1,330,964$ 860,423$ 1,413,850$ 1,422,389$ 1,960,186$ 1,376,936$
2007 1,176,889 774,036 1,344,321 1,310,943 1,918,790 1,278,601
2008 1,120,973 730,671 1,422,401 1,251,978 2,031,626 1,188,178
2009 1,066,684 690,294 1,472,798 1,188,094 2,160,518 1,098,361
2010 1,083,464 645,940 1,542,960 1,114,716 2,218,576 1,000,660
2011-2015 6,069,422 2,433,648 9,016,856 4,295,795 10,398,722 3,488,659
2016-2020 4,891,689 1,163,072 9,402,783 2,004,789 7,515,528 1,316,563
2021-2025 2,973,405 246,311 3,842,995 281,319 1,838,600 71,564
19,713,490$ 7,544,395$ 29,458,964$ 12,870,023$ 30,042,546$ 10,819,522$
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 covenants to create from ad valorem tax revenues a sinking fund
sufficient to pay the current interest and principal installments as they become due. In addition
to the sinking fund, there are a number of limitations and restrictions contained in the various
general obligation bonds and certificate indentures. The City is in compliance with the
significant limitations and restrictions at September 30, 2005.
On May 26, 2005 the City issued $5.71 million in General Obligation Improvement Bonds with a
true interest cost of 4.35%. The proceeds from the sale of the bonds will be used to (1) pay for
the cost of construction and acquisition of and improvements to City streets, traffic control
systems, parks, and public facilities, and (2) pay the costs incurred in connection with the
issuance of the Bonds.
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2005
City of College Station, Texas
56
On May 26, 2005 the City issued $7.595 million in Certificates of Obligation with a true interest
cost of 4.14%. The proceeds from the sale of the Certificates will be used to pay for the cost of
(1) construction of streets, drainage improvements, street lighting, water improvements, and
sewer improvements; (2) athletic field and park projects; (3) technology projects; (4) the
acquisition and construction of capital improvements in specific areas of the City; (5) the
acquisition of a fire ladder truck; (6) the acquisition of land and design cost for a City-owned
cemetery; and (7) to pay the costs incurred in connection with the issuance of the Certificates.
Revenue Bonds
Utility system revenue bonds are secured by the net revenues of the Electric, Water, and 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 May 26, 2005 the City issued $8.035 million in Utility System Revenue Bonds with a true
interest cost of 4.37%. Proceeds from the sale of the bonds will be used for electric and water
system improvements and for payment of the costs incurred in connection with the issuance of
the bonds.
On August 18, 2005 the City issued $12.995 million in Utility System Revenue Refunding
Bonds with a true interest cost of 3.93%. Proceeds from the sale of the bonds were used to
currently refund $2,700,000 and advance refund $10,360,000 of the City’s outstanding Utility
System Revenue Bonds in order to achieve annual and net present value savings in the City’s
annual debt service expense. The proceeds were also used to pay 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,
2005, the City had an arbitrage rebate liability of $126,000 related to the 1998 General
Obligation Bonds, the 1999 General Obligation Bonds, and the 1999 Certificates of Obligation.
Defeasance
On August 18, 2005 the City issued Utility System Revenue Refunding Bonds with an average
interest rate of 4.69% to refund $13.06 million of series 1995, 1998, and 2000 Utility System
Revenue bonds and 1996 Utility System Revenue and Refunding bonds. As a result of this
refunding, the City will reduce its total debt service payments over the next 10 years by
approximately $1,037,232 and will obtain an economic gain (difference between the present
values of the debt service payments on the old and new debt) of $813,969. 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.
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2005
City of College Station, Texas
57
The City has defeased certain revenue refunding bonds totaling $74,140,000 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, 2005, the outstanding principal balance of the defeased revenue refunding
bonds was $22,985,000 and the outstanding principal balance of the defeased general
obligation bonds and certificates of obligation was $1,750,000.
The assets, liabilities, and financial transactions of all of these trust accounts and the liability for
refunded (defeased) bonds are not reflected in the financial statements of the City.
The tables below reflect refunded debt outstanding at September 30, 2005 and are net of any
amounts to be paid or retired by the trustee on October 1, 2005:
Refunded in Year Ended September 30, 2005
Utility System Revenue Bonds, Series 1995 2,700,000$
Utility System Revenue Bonds, Series 1996 4,260,000
Utility System Revenue Bonds, Series 1998 1,330,000
Utility System Revenue Bonds, Series 2000 4,770,000
13,060,000$
Refunded in Prior Years
Utility System Revenue & Refunding Bonds, Series 1993 2,000,000$
Utility System Revenue Bonds, Series 1994 7,425,000
Utility System Revenue Bonds, Series 1990 500,000
General Obligation & Refunding Bonds, Series 1991 975,000
General Obligation Refunding Bonds, Series 1996 775,000
11,675,000$
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2005
City of College Station, Texas
58
G. Reservations of Fund Balances and Net Assets
Fund balances for governmental funds have been reserved at September 30, 2005 as follows:
Reserved
Governmental Funds:
General Fund:
Reserved for Encumbrances 537,586$
Reserved for Inventory 56,280
Reserved for Police Seizure 23,664
Reserved for Court Technology 212,005
Reserved for Court Security 278,369
Reserved for Court Efficiency Improvements 24,276
Debt Service:
Reserved for Encumbrances 2,128
Reserved for Bond Debt Service 2,815,959
Other Governmental Funds:
Reserved for Encumbrances 8,311,783
Reserved for Capital Projects 30,440,475
Reserved for Endowment 1,113,033
Reserved for Prepaids 315,733
Total 44,131,291$
H. Restatement of Net Assets
The business-type activities beginning net assets reported in the government-wide financial
statements has been restated, and the electric fund beginning net assets reported in the
proprietary fund financial statements has been restated. The restatement in both statements is
the result of a correction to the value of a previously unrecorded building in the electric fund.
The restatement is summarized in the schedule below:
Business-type Electric
Activities Fund
Net Assets, October 1, 2004 161,018,556$ 51,110,212$
Adjustment to Buildings and Building Improvements 2,108,473 2,108,473
Net Assets, October 1, 2004 163,127,029$ 53,218,685$
The governmental activities beginning net assets reported in the government-wide financial
statements has been restated, and the property and casualty fund and workers’ compensation
fund beginning net assets reported in the internal service fund financial statements have been
restated. The restatement in both statements is the result of an actuarial report showing the
unpaid liability in both the property and casualty and worker’s compensation funds as of
September 30, 2004. The final numbers for the 2004 actuarial report were not received until
after the 2004 CAFR had been issued.
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2005
City of College Station, Texas
59
The restatement is summarized in the schedule below:
Property and Workers'
Governmental Casualty Compensation
Activities Fund Fund
Net Assets, October 1, 2004 131,223,686$ 404,404$ 235,509$
Adjustment to Claims Payable (904,263) (154,997) (749,266)
Net Assets, October 1, 2004 130,319,423$ 249,407$ (513,757)$
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 46.40 cents per $100 of assessed valuation
for the year ended September 30, 2005. Under current state statutes, the City's ability to
increase the levy for property taxation is subject to a maximum rate of $2.50 per $100 valuation.
The Brazos County Appraisal District ("Appraisal District") is responsible for the recording and
appraisal of property for all taxing units in Brazos County. The Appraisal District is required to
assess property at 100 percent of its appraised value. Real property must be reappraised at
least every three years. The City may, at its own expense, require annual reviews by the
Appraisal District through various appeals and, if necessary, legal action. Under this system, if
the rate, excluding tax rates for bonds and other contractual obligations adjusted for new
improvements, exceeds the rate for the previous year by more than eight (8) percent, qualified
voters of the City may petition for an election to determine whether to limit the tax rate to no
more than eight (8) percent above the tax rate of the previous year.
Brazos County bills and collects the property taxes for the City.
B. Risk Management
A government entity, such as the City of College Station, is faced with many risks. These risks
can be generally subdivided into four categories of loss: direct property loss, indirect property
loss, liability loss, and personnel losses. The City employs a combination of risk management
strategies to provide acceptable levels of protection regarding these potential risks.
The City is self-insured for health benefits, and the plan is administered by Blue Cross Blue
Shield. This activity is accounted for in the Employee Benefits Fund which is funded monthly by
contributions from employees and from the operating funds of the City. These contributions are
determined based on an analysis of prior year claims and administrative costs and a forecast of
future claims and administrative costs. The City has a stop-loss insurance policy that limits its
liability to $100,000 per individual per year with an aggregate, annual liability of
$1,000,000. The liability for outstanding losses includes $472,586 for claims incurred but not
reported as of September 30, 2005.
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2005
City of College Station, Texas
60
In fiscal year 2005 the City was insured by Affiliated FM for all of its real and personal property
and mobile equipment. Affiliated FM is funded by calculated contributions from the City's
operating funds and provides all of the claims handling for these lines of coverage. The City
carries a $100,000 deductible per occurrence on its property insurance policy with Affiliated FM.
Property insurance covers all direct losses and some indirect losses.
On all lines of liability coverage, the City is self-insured. The City has procured excess liability
coverage through State National Insurance Company that is A.M. Best rated A-VII. The self-
insured retention ("SIR") is $250,000 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.
Liabilities in the property and casualty fund and the workers’ compensation fund are reported
when it is probable that a loss has occurred and the amount of the loss can be reasonably
estimated. Liabilities include an amount for claims that have been incurred but not reported.
Based upon the most recent actuarial study, the City has recorded the potential liability of
$279,770 in the property and casualty fund and the potential liability of $906,846 in the workers’
compensation fund. The results of the process to estimate the claims liability is not an exact
amount as it depends on many complex factors, such as inflation, changes in legal doctrines,
and damage awards. Accordingly, claims are reevaluated periodically to consider the effects of
inflation, recent claim settlement trends (including frequency and amount of pay-outs), and
other economic and social factors.
Lastly, the City also uses its Unemployment Fund to account for self-insurance activity involving
claims filed under unemployment compensation laws. Monthly contributions based on a
percentage of payroll are determined each year during the budget process and are used to fund
this activity.
Settlements have not exceeded self-insured retention for each of the past three fiscal years.
The liabilities for insurance claims reported in each of the funds are based on Governmental
Accounting Standards Board Statement No. 10, which requires that a liability for claims be
reported if information prior to the issuance of the financial statements indicates that it is
probable that a liability has been incurred at the date of the financial statements and if the
amount of the loss can be reasonably estimated. These liabilities include an estimate for
incurred but not reported claims. Changes in the balances of claims liabilities for the self-
insurance funds that are accounted for as Internal Service Funds for fiscal years 2005 and
2004 are as follows:
2005 2004
Unpaid Claims, October 1 1,514,527$ 418,859$
Incurred Claims (including IBNR's) 4,110,008 3,569,188
Claims Paid (3,965,333) (2,473,520)
Unpaid Claims, September 30 1,659,202$ 1,514,527$
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2005
City of College Station, Texas
61
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 year 2005 was ($91,031).
State and federal laws and regulations require BVSWMA to place a final cover on its Rock
Prairie landfill site when it stops accepting waste and to perform certain maintenance and
monitoring functions at the site for thirty years after closure. Although closure and postclosure
care costs will be paid only near or after the date that the landfill stops accepting waste,
BVSWMA reports a portion of these closure and postclosure care costs as an operating
expense in each period based on landfill capacity used as of each balance sheet date. The
$2.8 million reported as accrued postclosure maintenance costs at September 30, 2005,
represents the cumulative amount reported to date based on the use of 66 percent of the
estimated capacity of the landfill. BVSWMA will recognize the remaining estimated cost of
closure and postclosure care of $1.5 million as the remaining estimated capacity is filled.
These amounts are based on what it would cost to perform all closure and postclosure care in
2005. BVSWMA expects to close the landfill in the year 2008. Actual cost may be higher due
to inflation, changes in technology, or changes in regulations.
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2005
City of College Station, Texas
62
The following is a summary of information from the audited financial statements of BVSWMA as
of September 30, 2005:
2005 2004
Assets:
Current Assets 9,593,720$ 12,714,944$
Capital Assets
(Net of $4,722,979 Accumulated Depreciation
at 2005 and $4,546,076 at 2004) 5,707,912 4,132,478
Deferred Landfill Permits
(Net of $507,081 Accumulated Amortization
at 2005 and $429,483 at 2004) 2,363,213 2,363,993
17,664,845 19,211,415
Liabilities:
Current Liabilities 417,866 460,842
Noncurrent Liabilities:
Accrued Post Closure Maintenance Costs 2,833,276 4,154,808
Total Liabilities 3,251,142 4,615,650
Net Assets
Invested In Capital Assets 5,707,912 4,132,478
Unrestricted 8,705,791 10,463,287
Total Net Assets 14,413,703$ 14,595,765$
Program Revenues 5,186,729$ 4,770,116$
Expenses 5,668,732 5,597,320
(482,003) (827,204)
General Revenues 299,941 210,600
Change in Net Assets (182,062)$ (616,604)$
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 801 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
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2005
City of College Station, Texas
63
two times what would have been contributed by the employee, with interest, prior to
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:
Deposit Rate: 7%
Matching Ratio (City to Employee): 2 to 1
Members Vested After: 5 years
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 a 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, 2004 valuation is effective for rates beginning
January 2006).
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2005
City of College Station, Texas
64
The following is a schedule of actuarial liabilities and funding progress:
Actuarial Valuation Date 12/31/2004
Actuarial Value of Assets 70,336,601$
Actuarial Accrued Liability 87,906,815$
Percentage Funded 80.0%
Unfunded (Overfunded) Actuarial Accrued Liability (UAAL) 17,570,214$
Annual Covered Payroll 30,978,906$
UAAL as a Percentage of Covered Payroll 56.7%
Net Pension Obligation (NPO) at Beginning of Period -$
Plus Annual Pension Cost:
Annual Required Contribution (ARC) 3,814,370
Less Contributions Made 3,814,370
NPO at the End of the Period -$
Actuarial assumptions as of the latest actuarial valuation are as follows:
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: 7%
Projected Salary Increases: None
Includes Inflation at: 3.50%
Cost-of-Living Adjustments: None
Each of the 801 Municipalities have an annual, individual actuarial valuation performed. All
assumptions for the 12/31/04 valuations are contained in the 2004 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:
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2005
City of College Station, Texas
65
Fiscal Year Annual Required Contributions Net Pension
Ending Contribution (ARC) Made Obligation
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 -
2004 $3,204,948 $3,204,948 -
2005 $3,814,370 $3,814,370 -
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
12/31/1995 $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%
12/31/2003 $63,223,606 $80,476,343 $17,252,737 79%
12/31/2004 $70,336,601 $87,906,815 $17,570,214 80%
Annual UAAL as a
Actuarial Covered Percentage of
Valuation Date Payroll Covered Payroll
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%
12/31/2003 $28,537,016 61%
12/31/2004 $30,978,906 57%
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2005
City of College Station, Texas
66
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
2005, fifteen 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 2005, 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, 2005 was $427,116. The City received a
stop-loss payment related to these claims in the amount of $315,459. As of September 30,
2005 the City has 5 COBRA participants.
E. Deferred Compensation Plan
The City offers its employees a deferred compensation plan created in accordance with Internal
Revenue Code ("IRC") 457. The plan, as amended, is available to all employees and permits
them to defer a portion of their salary until future years. The plan funds are not available to
employees until termination, retirement, death, or emergency.
All amounts of compensation deferred under the plan (until paid or made available to the
employee or other beneficiary) were placed in trust for the exclusive benefit of the participants
and the beneficiaries. This action is in accordance with changes made to IRC Section 457.
Since the City is no longer the Plan Administrator or the trustee, the assets of the plan are no
longer a reportable fund in the City's basic financial statements.
F. Commitments and Contingencies
Construction Commitments
The City has active construction projects as of September 30, 2005. At year-end, the
construction commitments with contractors for specific projects were as follows:
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2005
City of College Station, Texas
67
Remaining
Project Name Spent to Date Commitment
Shenandoah/Spring Creek Substation -$ 566,902$
Rock Prairie Landfill Phase I 2,086,467 128,493
1119 Detroit 41,661 26,119
Water Service Ext. Phase I - 2,052,658
Highway 30/60 Infrastructure Phase II 1,050,216 353,789
Fire Station #5 1,125,089 158,911
Greens Prairie Capacitor Substation Install. - 157,600
Intergenerational Park Additions 137,151 156,817
Playground & Sidewalk at Lincoln Center - 56,570
John Crompton Park Site Development 352,639 194,170
Longmire, Graham to Cypress Meadow 986,914 90,566
Greens Prairie Widening 1,428,542 1,310,903
Green Prairie Road/Arrington Road Align. 469,800 561,397
Wolf Pen Creek Upper Trails System 1,752,866 896,954
Dowling Road Pump Station Chemical Feed Building 29,450 2,756,650
Rehabilitation of Water Wells 4 & 5 91,574 21,426
Well #6 and Line 637,578 659,658
Dominik Street Rehabilitation 790,156 81,682
Hwy 6 Water Impact Fee 18" Water Line 148,017 16,446
Installation of Pavillion over Basketball Court/ Miller Park 119,024 33,826
11,247,144$ 10,281,537$
G. Bonds Available for Sale
Authorized general obligation bonds available for future issue are as follows:
Year Unissued
Authorized Amount
Public Buildings 1984 700,000$
Street Improvements 1984 500,000
Street Improvements 2003 16,930,000
Traffic Management 2003 2,450,000
Park Improvements 2003 7,955,000
Municipal Complex Improvements 2003 3,655,000
Fire Station Improvements 2003 1,310,000
Total 33,500,000$
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2005
City of College Station, Texas
68
H. 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]
12/31/1996 $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%
12/31/2004 $63,223,606 $80,476,343 $17,252,737 78.6% $28,537,016 60.5%
12/31/2005 $70,336,601 $87,906,815 $17,570,214 80.0% $30,978,906 56.7%
*Assets are stated at cost as of December 31 of the preceding year.
69
CITY OF COLLEGE STATION, TEXAS
Schedule of Revenues, Expenditures, and Changes
in Fund Balances Budget and Actual (Budgetary Basis)
General Fund
For the Fiscal Year Ended September 30, 2005
Original Budget Final Budget Actual
Variance Over
(Under)
Revenues
Taxes 23,733,833$ 23,733,833$ 23,884,418$ 150,585$
Licenses and Permits 1,038,000 1,038,000 1,025,013 (12,987)
Intergovernmental 500,649 594,826 590,077 (4,749)
Charges for Services 2,483,245 2,483,245 2,480,786 (2,459)
Fines, Forfeits and Penalties 3,555,902 3,555,902 3,518,915 (36,987)
Investment Income 266,970 266,970 357,436 90,466
Rents and Royalties 248,300 248,300 243,832 (4,468)
Contributions 9,700 12,200 37,082 24,882
Reimbursed Expenditures 8,700 62,208 57,922 (4,286)
Other 200,300 200,300 207,736 7,436
Total Revenues 32,045,599 32,195,784 32,403,217 207,433
Expenditures
Current
General Government 3,715,290 4,044,947 4,030,494 (14,453)
Fiscal Services 3,138,656 3,093,020 2,985,628 (107,392)
Police 10,579,593 10,659,834 10,691,649 31,815
Fire 8,070,035 8,105,713 7,885,184 (220,529)
Development Services 2,113,752 2,103,701 1,959,574 (144,127)
Public Works 6,661,229 6,771,329 6,322,882 (448,447)
Economic and Community Development 0 13,440 11,281 (2,159)
Parks and Recreation 6,901,883 6,976,383 6,771,144 (205,239)
Office of Technology and Information Services 2,567,458 2,574,122 2,486,659 (87,463)
Library 723,346 723,346 694,445 (28,901)
Nondepartmental
Reimbursed Administrative (6,125,167) (6,125,167) (6,000,650) 124,517
Contributions 1,085,644 1,064,644 576,444 (488,200)
Other 334,258 61,989 61,616 (373)
Capital Outlay 1,399,679 1,463,640 796,248 (667,392)
Total Expenditures 41,165,656 41,530,941 39,272,598 (2,258,343)
Deficiency of Revenues Under Expenditures (9,120,057) (9,335,157) (6,869,381) 2,465,776
Other Financing Sources (Uses)
Sale of Capital Assets 20,600 20,600 12,182 (8,418)
Transfers In 7,420,800 7,420,800 7,444,644 23,844
Transfers Out (693,470) (793,470) (727,470) 66,000
Total Other Financing Sources 6,747,930 6,647,930 6,729,356 81,426
Net Change in Fund Balances (2,372,127) (2,687,227) (140,025) 2,547,202
Fund Balances, October 1 10,702,952 10,702,952 10,702,952 0
Fund Balances, September 30 8,330,825$ 8,015,725$ 10,562,927$ 2,547,202$
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, 2005
Net change in fund balances - Budget Basis (140,025)$
Revenues
Market Adjustment for Investments (99,391)
Other 5,055
Expenditures
Bad Debt Expense (190,672)
Payroll Accrual, net (334,218)
Capitalize/Reclass Assets 257,133
Reclass Expense (37,010)
Other 6,701
Net change in fund balances - GAAP Basis (532,427)$
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.
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 bonds.
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, 2005
Special Revenue
Funds
Capital Projects
Funds
Permanent
Funds Total
Current Assets
Equity in Cash and Cash Equivalents 3,170,736$ 5,863,559$ 354,521$ 9,388,816$
Equity in Investments 6,639,426 12,408,670 750,250 19,798,346
Receivables
Accrued Interest 40,193 93,701 5,174 139,068
Grants 289,678 0 0 289,678
Accounts 57,293 133,038 3,147 193,478
Less Allowance for Uncollectible Accounts (57,293) (17,400) (2,301) (76,994)
Inventories 0 0 2,373 2,373
Total Assets 10,140,033$ 18,481,568$ 1,113,164$ 29,734,765$
Liabilities and Fund Balances
Liabilities
Accounts Payable 405,726$ 556,826$ 131$ 962,683$
Retainage Payable 159,137 131,153 0 290,290
Interfund Payable 200,000 0 0 200,000
Accrued Liabilities 0 41,539 0 41,539
Total Liabilities 764,863 729,518 131 1,494,512
Fund Balances
Reserved
Reserved for Encumbrances 3,130,945 1,886,657 0 5,017,602
Reserved for Capital Projects 0 15,865,393 0 15,865,393
Reserved for Perpetual Care 0 0 1,113,033 1,113,033
Unreserved
Undesignated 6,244,225 0 0 6,244,225
Total Fund Balances 9,375,170 17,752,050 1,113,033 28,240,253
Total Liabilities and Fund Balances 10,140,033$ 18,481,568$ 1,113,164$ 29,734,765$
74
CITY OF COLLEGE STATION, TEXAS
Combining Balance Sheet
Nonmajor Governmental Funds - Special Revenue Funds
As of September 30, 2005
Community
Development
Convention
Center Hotel/Motel Parks Escrow
Wolf Pen
Creek Tax
Increment
Financing
District Total
Current Assets
Equity in Cash and Cash Equivalents 251,083$ 302,541$ 1,092,849$ 438,090$ 1,086,173$ 3,170,736$
Equity in Investments 531,351 640,248 2,312,725 856,504 2,298,598 6,639,426
Receivables
Accrued Interest 0 85 15,993 5,674 18,441 40,193
Grants 289,678 0 0 0 0 289,678
Accounts 0 0 57,293 0 0 57,293
Less Allowance for Uncollectible
Accounts 0 0 (57,293) 0 0 (57,293)
Total Assets 1,072,112$ 942,874$ 3,421,567$ 1,300,268$ 3,403,212$ 10,140,033$
Liabilities and Fund Balances
Liabilities
Accounts Payable 79,164$ 7,571$ 25,636$ 106,368$ 186,987$ 405,726$
Retainage Payable 5,019 55,275 0 28,499 70,344 159,137
Interfund Payable 0 0 200,000 0 0 200,000
Total Liabilities 84,183 62,846 225,636 134,867 257,331 764,863
Fund Balances
Reserved for Encumbrances 957,546 680,828 1,015,649 79,649 397,273 3,130,945
Unreserved
Undesignated 30,383 199,200 2,180,282 1,085,752 2,748,608 6,244,225
Total Fund Balances 987,929 880,028 3,195,931 1,165,401 3,145,881 9,375,170
Total Liabilities and Fund Balances 1,072,112$ 942,874$ 3,421,567$ 1,300,268$ 3,403,212$ 10,140,033$
75
CITY OF COLLEGE STATION, TEXAS
Combining Balance Sheet
Nonmajor Governmental Funds - Capital Projects Funds
As of September 30, 2005
Business Park
Drainage
Projects
General
Government
Projects
Parks
Projects Total
Current Assets
Equity in Cash and Cash Equivalents 572,175$ 2,160,284$ 2,751,948$ 379,152$ 5,863,559$
Equity in Investments 1,210,856 4,571,670 5,823,770 802,374 12,408,670
Receivables
Accrued Interest 14,868 33,341 35,973 9,519 93,701
Accounts 0 133,038 0 0 133,038
Less Allowance for Uncollectible Accounts 0 (17,400) 0 0 (17,400)
Total Assets 1,797,899$ 6,880,933$ 8,611,691$ 1,191,045$ 18,481,568$
Liabilities and Fund Balances
Liabilities
Accounts Payable 337$ 201,773$ 262,007$ 92,709$ 556,826$
Retainage Payable 0 35,299 61,209 34,645 131,153
Accrued Liabilities 0 15,566 5,290 20,683 41,539
Total Liabilities 337 252,638 328,506 148,037 729,518
Fund Balances
Reserved
Reserved for Encumbrances 105,296 386,027 1,037,326 358,008 1,886,657
Reserved for Capital Projects 1,692,266 6,242,268 7,245,859 685,000 15,865,393
Total Fund Balances 1,797,562 6,628,295 8,283,185 1,043,008 17,752,050
Total Liabilities and Fund Balances 1,797,899$ 6,880,933$ 8,611,691$ 1,191,045$ 18,481,568$
76
CITY OF COLLEGE STATION, TEXAS
Balance Sheet
Nonmajor Governmental Fund - Permanent Fund
Cemetery Perpetual Care Fund
As of September 30, 2005
Current Assets
Equity in Cash and Cash Equivalents 354,521$
Equity in Investments 750,250
Receivables
Accrued Interest 5,174
Accounts 3,147
Allowance for Uncollectible Accounts (2,301)
Inventories 2,373
Total Assets 1,113,164$
Liabilities and Fund Balances
Liabilities
Accounts Payable 131$
Total Liabilities 131
Fund Balances
Reserved
Reserved for Perpetual Care 1,113,033
Total Fund Balances 1,113,033
Total Liabilities and Fund Balances 1,113,164$
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, 2005
Special Revenue
Funds
Capital Projects
Funds
Permanent
Funds Total
Revenues
Taxes 3,007,196$ 0$ 0$ 3,007,196$
Charges for Services 0 49,726 104,176 153,902
Intergovernmental 1,913,833 0 0 1,913,833
Special Assessment 0 1,110,461 0 1,110,461
Fines, Forfeits and Penalties 27 0 0 27
Investment Income 199,938 328,758 19,665 548,361
Loan Repayments 2,541 0 0 2,541
Contributions 0 0 100 100
Other 330,237 282 0 330,519
Total Revenues 5,453,772 1,489,227 123,941 7,066,940
Expenditures
Current
General Government 71,027 41,295 0 112,322
Fiscal Services 0 6,268 0 6,268
Parks 128 0 0 128
Public Works 0 16,994 0 16,994
Community Development
Block Grant 275,775 0 0 275,775
Home Grant 439,243 0 0 439,243
Reimbursed Administrative 985,547 1,061,235 0 2,046,782
Contributions 1,300,000 0 0 1,300,000
Other 14,960 23,146 1,602 39,708
Capital Outlay 3,514,178 5,448,147 0 8,962,325
Debt Issuance Costs 21,052 57,533 0 78,585
Total Expenditures 6,621,910 6,654,618 1,602 13,278,130
Excess (Deficiency) of Revenues Over (Under)
Expenditures (1,168,138) (5,165,391) 122,339 (6,211,190)
Other Financing Sources (Uses)
Proceeds from Long-Term Debt Issuance 1,881,052 5,867,419 0 7,748,471
Transfers In 1,200,000 834,990 0 2,034,990
Transfers Out (1,040,623) (1,200,000) 0 (2,240,623)
Total Other Financing Sources 2,040,429 5,502,409 0 7,542,838
Net Change in Fund Balances 872,291 337,018 122,339 1,331,648
Fund Balances, October 1 8,502,879 17,415,032 990,694 26,908,605
Fund Balances, September 30 9,375,170$ 17,752,050$ 1,113,033$ 28,240,253$
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, 2005
Community
Development
Convention
Center
Hotel/Motel
Tax Parks Escrow
Wolf Pen
Creek Tax
Increment
Financing
District Total
Revenues
Taxes 0$ 0$ 2,306,928$ 0$ 700,268$ 3,007,196$
Intergovernmental 1,913,833 0 0 0 0 1,913,833
Fines, Forfeits and Penalties 0 0 27 0 0 27
Investment Income 0 10,090 60,653 81,295 47,900 199,938
Loan Repayments 2,541 0 0 0 0 2,541
Other 30,327 0 44,771 255,139 0 330,237
Total Revenues 1,946,701 10,090 2,412,379 336,434 748,168 5,453,772
Expenditures
Current
General Government 0 0 71,027 0 0 71,027
Parks 0 0 0 0 128 128
Community Development Block Grant 275,775 0 0 0 0 275,775
Home Grant 439,243 0 0 0 0 439,243
Reimbursed Administrative 622,022 0 353,525 10,000 0 985,547
Contributions 0 0 1,300,000 0 0 1,300,000
Other 0 0 14,960 0 0 14,960
Capital Outlay 0 1,164,052 0 828,662 1,521,464 3,514,178
Debt Issuance Costs 0 0 0 0 21,052 21,052
Total Expenditures 1,337,040 1,164,052 1,739,512 838,662 1,542,644 6,621,910
Excess (Deficiency) of Revenues Over (Under)
Expenditures 609,661 (1,153,962) 672,867 (502,228) (794,476) (1,168,138)
Other Financing Sources (Uses)
Proceeds from Long-Term Debt Issuance 0 0 0 0 1,881,052 1,881,052
Transfers In 0 1,200,000 0 0 0 1,200,000
Transfers Out (604,098) 0 0 0 (436,525) (1,040,623)
Total Other Financing Sources (Uses) (604,098) 1,200,000 0 0 1,444,527 2,040,429
Net Change in Fund Balances 5,563 46,038 672,867 (502,228) 650,051 872,291
Fund Balances, October 1 982,366 833,990 2,523,064 1,667,629 2,495,830 8,502,879
Fund Balances, September 30 987,929$ 880,028$ 3,195,931$ 1,165,401$ 3,145,881$ 9,375,170$
79
CITY OF COLLEGE STATION, TEXAS
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds - Capital Projects Funds
For the Fiscal Year Ended September 30, 2005
Business
Park
Drainage
Projects
General
Government
Projects
Parks
Projects Total
Revenues
Charges for Services 0$ 0$ 0$ 49,726$ 49,726$
Special Assessment 0 1,110,461 0 0 1,110,461
Investment Income 52,530 135,261 121,359 19,608 328,758
Other 0 282 0 0 282
Total Revenues 52,530 1,246,004 121,359 69,334 1,489,227
Expenditures
Current
General Government 0 15,566 5,290 20,439 41,295
Fiscal Services 0 0 5,346 922 6,268
Public Works 0 16,994 0 0 16,994
Reimbursed Administrative 29,200 819,478 202,557 10,000 1,061,235
Other 0 6,323 16,823 0 23,146
Capital Outlay 369,161 1,471,515 1,893,694 1,713,777 5,448,147
Debt Issuance Costs 5,659 0 34,455 17,419 57,533
Total Expenditures 404,020 2,329,876 2,158,165 1,762,557 6,654,618
Deficiency of Revenues Under Expenditures (351,490) (1,083,872) (2,036,806) (1,693,223) (5,165,391)
Other Financing Sources (Uses)
Proceeds from Long-Term Debt Issuance 505,659 0 3,519,386 1,842,374 5,867,419
Transfers In 0 0 327,470 507,520 834,990
Transfers Out (1,200,000) 0 0 0 (1,200,000)
Total Other Financing Sources (Uses) (694,341) 0 3,846,856 2,349,894 5,502,409
Net Change in Fund Balances (1,045,831) (1,083,872) 1,810,050 656,671 337,018
Fund Balances, October 1 2,843,393 7,712,168 6,473,135 386,336 17,415,032
Fund Balances, September 30 1,797,562$ 6,628,296$ 8,283,185$ 1,043,007$ 17,752,050$
80
CITY OF COLLEGE STATION, TEXAS
Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Fund - Permanent Fund
Cemetery Perpetual Care Fund
For the Fiscal Year Ended September 30, 2005
Revenues
Sale of Cemetery Lots 104,176$
Investment Income 19,665
Contributions 100
Total Revenues 123,941
Expenditures
Other 1,602
Total Expenditures 1,602
Net Change in Fund Balances 122,339
Fund Balances, October 1 990,694
Fund Balances, September 30 1,113,033$
81
CITY OF COLLEGE STATION, TEXAS
Debt Service Fund
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended September 30, 2005
Original
Budget
Revised
Budget Actual
Variance
Over
(Under)
Revenues
Taxes 9,011,900$ 9,011,900$ 8,722,315$ (289,585)$
Investment Income 50,000 50,000 95,461 45,461
Accrued Bond Interest 0 0 40,895 40,895
Total Revenues 9,061,900 9,061,900 8,858,671 (203,229)
Expenditures
Debt Service
Principal Payments 6,190,000 6,190,000 6,190,000 0
Interest Payments 3,876,975 3,876,975 3,885,075 8,100
Fiscal Charges 0 0 13,871 13,871
Debt Issuance Cost 13,000 13,000 0 (13,000)
Total Expenditures 10,079,975 10,079,975 10,088,946 8,971
Deficiency of Revenues Under Expenditures (1,018,075) (1,018,075) (1,230,275) (212,200)
Other Financing Sources
Transfers In 1,523,571 1,523,571 1,523,571 0
Total Other Financing Sources 1,523,571 1,523,571 1,523,571 0
Net Change in Fund Balances 505,496 505,496 293,296 (212,200)
Fund Balances, October 1 2,538,713 2,538,713 2,538,713 0
Fund Balances, September 30 3,044,209$ 3,044,209$ 2,832,009$ (212,200)$
82
CITY OF COLLEGE STATION, TEXAS
Adjustments to Debt Service Fund Revenues
To Reconcile From Budget Basis to GAAP Basis
Debt Service Fund
For the Fiscal Year Ended September 30, 2005
Change in Fund Balances - Budget Basis 293,296$
Revenues
Market Adjustment for Investments (13,922)
Change in Fund Balances - GAAP Basis 279,374$
83
CITY OF COLLEGE STATION, TEXAS
Community Development Fund
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended September 30, 2005
Original
Budget
Revised
Budget Actual
Variance
Over
(Under)
Revenues
Intergovernmental
Community Development Block Grant 2,588,190$ 2,588,190$ 1,324,150$ (1,264,040)$
Home Grant 1,631,117 1,631,117 589,683 (1,041,434)
Loan Repayments 0 0 2,493 2,493
Interest on Loans 0 0 48 48
Other 260,394 260,394 30,327 (230,067)
Total Revenues 4,479,701 4,479,701 1,946,701 (2,533,000)
Expenditures
Community Development Block Grant 2,588,190 2,588,190 275,775 (2,312,415)
Home Grant 1,631,117 1,631,117 439,243 (1,191,874)
Reimbursed Administrative 0 0 622,022 622,022
Affordable Housing 240,394 240,394 0 (240,394)
Total Expenditures 4,459,701 4,459,701 1,337,040 (3,122,661)
Excess of Revenues Over Expenditures 20,000 20,000 609,661 589,661
Other Financing Uses
Transfers Out 0 0 (604,098) (604,098)
Total Other Financing Uses 0 0 (604,098) (604,098)
Change in Fund Balances 20,000 20,000 5,563 (14,437)
Fund Balances, October 1 982,366 982,366 982,366 0
Fund Balances, September 30 1,002,366$ 1,002,366$ 987,929$ (14,437)$
See reconciliation to GAAP basis on page 89.
84
CITY OF COLLEGE STATION, TEXAS
Convention Center Fund
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended September 30, 2005
Original
Budget
Revised
Budget Actual
Variance
Over
(Under)
Revenues
Investment Income 18,000$ 18,000$ 10,232$ (7,768)$
Total Revenues 18,000 18,000 10,232 (7,768)
Expenditures
Capital Outlay 1,200,000 1,200,000 1,147,686 (52,314)
Total Expenditures 1,200,000 1,200,000 1,147,686 (52,314)
Deficiency of Revenues Under Expenditures (1,182,000) (1,182,000) (1,137,454) 44,546
Other Financing Sources
Transfers In 1,200,000 1,200,000 1,200,000 0
Total Other Financing Sources 1,200,000 1,200,000 1,200,000 0
Change in Fund Balances 18,000 18,000 62,546 44,546
Fund Balances, October 1 833,990 833,990 833,990 0
Fund Balances, September 30 851,990$ 851,990$ 896,536$ 44,546$
See reconciliation to GAAP basis on page 89.
85
CITY OF COLLEGE STATION, TEXAS
Hotel/Motel Tax Fund
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended September 30, 2005
Original
Budget
Revised
Budget Actual
Variance
Over
(Under)
Revenues
Taxes $2,272,000 2,272,000$ 2,306,928$ 34,928$
Charges for Services 9,500 9,500 0 (9,500)
Fines, Forfeits and Penalties 0 0 27 27
Investment Income 45,000 45,000 87,644 42,644
Other 500 500 44,771 44,271
Total Revenues 2,327,000 2,327,000 2,439,370 112,370
Expenditures
Current
Development Services 25,000 25,000 59,511 34,511
Public Relations 6,200 6,200 7,804 1,604
General Government 600,000 600,000 3,712 (596,288)
Reimbursed Administrative 278,000 278,000 353,525 75,525
Contributions 1,300,000 1,300,000 1,300,000 0
Other 50,000 50,000 14,960 (35,040)
Contingency 40,000 40,000 0 (40,000)
Total Expenditures 2,299,200 2,299,200 1,739,512 (559,688)
Excess of Revenues Over Expenditures 27,800 27,800 699,858 672,058
Other Financing Uses
Transfers Out (600,000) (600,000) 0 600,000
Total Other Financing Uses (600,000) (600,000) 0 600,000
Change in Fund Balances (572,200) (572,200) 699,858 1,272,058
Fund Balances, October 1 2,523,064 2,523,064 2,523,064 0
Fund Balances, September 30 1,950,864$ 1,950,864$ 3,222,922$ 1,272,058$
See reconciliation to GAAP basis on page 89.
86
CITY OF COLLEGE STATION, TEXAS
Parks Escrow Fund
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended September 30, 2005
Original
Budget
Revised
Budget Actual
Variance
Over
(Under)
Revenues
Investment Income 30,000$ 30,000$ 90,872$ 60,872$
Other 50,000 50,000 255,139 205,139
Total Revenues 80,000 80,000 346,011 266,011
Expenditures
Current
Reimbursed Administrative 5,000 5,000 10,000 5,000
Capital Outlay 668,000 668,000 828,662 160,662
Total Expenditures 673,000 673,000 838,662 165,662
Change in Fund Balances (593,000) (593,000) (492,651) 100,349
Fund Balances, October 1 1,667,629 1,667,629 1,667,629 0
Fund Balances, September 30 1,074,629$ 1,074,629$ 1,174,978$ 100,349$
See reconciliation to GAAP basis on page 89.
87
CITY OF COLLEGE STATION, TEXAS
Wolf Pen Creek Tax Increment Financing District Fund
Schedules of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended September 30, 2005
Original
Budget
Revised
Budget Actual
Variance
Over
(Under)
Revenues
Taxes 731,350$ 731,350$ 700,268$ (31,082)$
Investment Income 40,000 40,000 79,020 39,020
Total Revenues 771,350 771,350 779,288 7,938
Expenditures
Current
Parks and Recreation 700 700 128 (572)
Debt Issuance Costs 0 0 21,052 21,052
Capital Outlay 2,882,500 2,882,500 1,500,906 (1,381,594)
Total Expenditures 2,883,200 2,883,200 1,522,086 (1,361,114)
Deficiency of Revenues Under Expenditures (2,111,850) (2,111,850) (742,798) 1,369,052
Other Financing Sources (Uses)
Proceeds from Long-Term Debt Issuance 1,860,000 1,860,000 1,881,052 21,052
Transfers Out (436,525) (436,525) (436,525) 0
Total Other Financing Sources 1,423,475 1,423,475 1,444,527 21,052
Change in Fund Balances (688,375) (688,375) 701,729 1,390,104
Fund Balances, October 1 2,495,830 2,495,830 2,495,830 0
Fund Balances, September 30 1,807,455$ 1,807,455$ 3,197,559$ 1,390,104$
See reconciliation to GAAP basis on page 89.
88
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, 2005
Community
Development
Convention
Center
Hotel/Motel
Tax Parks Escrow
Wolf Pen
Creek Tax
Increment
Financing
District
Change in Fund Balances - Budget Basis 5,563$ 62,546$ 699,858$ (492,651)$ 701,729$
Revenues:
Market Adjustment for Investments 0 (142) (26,991) (9,577) (31,120)
Expenditures:
Reclass Expense 0 (16,366) 0 0 (20,558)
Change in Fund Balances - GAAP Basis 5,563$ 46,038$ 672,867$ (502,228)$ 650,051$
89
CITY OF COLLEGE STATION, TEXAS
Business Park Fund
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended September 30, 2005
Original
Budget
Revised
Budget Actual
Variance
Over
(Under)
Revenues
Investment Income 70,000$ 70,000$ 77,622$ 7,622$
Total Revenues 70,000 70,000 77,622 7,622
Expenditures
Current
Reimbursed Administrative 29,200 29,200 29,200 0
Capital Outlay 220,000 220,000 362,803 142,803
Debt Issuance Cost 0 0 5,659 5,659
Total Expenditures 249,200 249,200 397,662 148,462
Deficiency of Revenues Under Expenditures (179,200) (179,200) (320,040) (140,840)
Other Financing Sources (Uses)
Proceeds from Long-Term Debt Issuance 3,150,000 3,150,000 505,659 (2,644,341)
Transfers Out 0 (1,200,000) (1,200,000) 0
Total Other Financing Sources (Uses) 3,150,000 1,950,000 (694,341) (2,644,341)
Change in Fund Balances 2,970,800 1,770,800 (1,014,381) (2,785,181)
Fund Balances, October 1 2,843,393 2,843,393 2,843,393 0
Fund Balances, September 30 5,814,193$ 4,614,193$ 1,829,012$ (2,785,181)$
See reconciliation to GAAP basis on page 95.
90
CITY OF COLLEGE STATION, TEXAS
Drainage Projects Fund
Schedules of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended September 30, 2005
Original
Budget
Revised
Budget Actual
Variance
Over
(Under)
Revenues
Special Assessment 1,093,900$ 1,093,900$ 1,111,410$ 17,510$
Investment Income 125,000 125,000 191,529 66,529
Total Revenues 1,218,900 1,218,900 1,302,939 84,039
Expenditures
Current
Purchased Professional Services 0 0 16,994 16,994
Reimbursed Administrative 890,082 710,503 819,478 108,975
Debt Issuance Costs 2,500 2,500 0 (2,500)
Capital Outlay 2,112,057 2,112,057 1,459,564 (652,493)
Total Expenditures 3,004,639 2,825,060 2,296,036 (529,024)
Deficiency of Revenues Under Expenditures (1,785,739) (1,606,160) (993,097) 613,063
Other Financing Sources (Uses)
Transfers Out 0 (65,000) 0 65,000
Other 0 0 282 282
Total Other Financing Sources (Uses) 0 (65,000) 282 65,282
Change in Fund Balances (1,785,739) (1,671,160) (992,815) 678,345
Fund Balances, October 1 7,712,168 7,712,168 7,712,168 0
Fund Balances, September 30 5,926,429$ 6,041,008$ 6,719,353$ 678,345$
See reconciliation to GAAP basis on page 95.
91
CITY OF COLLEGE STATION, TEXAS
General Government Projects Fund
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended September 30, 2005
Original
Budget
Revised
Budget Actual
Variance
Over
(Under)
Revenues
Investment Income 90,000$ 90,000$ 182,068$ 92,068$
Total Revenues 90,000 90,000 182,068 92,068
Expenditures
Current
Fiscal Services 0 0 5,346 5,346
Reimbursed Administrative 202,557 202,557 202,557 0
Other 0 0 16,823 16,823
Capital Outlay 6,334,470 6,424,470 1,870,140 (4,554,330)
Debt Issuance Costs 17,000 17,000 34,455 17,455
Total Expenditures 6,554,027 6,644,027 2,129,321 (4,514,706)
Deficiency of Revenues Under Expenditures (6,464,027) (6,554,027) (1,947,253) 4,606,774
Other Financing Sources
Proceeds from Long-Term Debt Issuance 2,885,000 2,885,000 3,519,386 634,386
Transfers In 829,470 592,470 327,470 (265,000)
Total Other Financing Sources 3,714,470 3,477,470 3,846,856 369,386
Change in Fund Balances (2,749,557) (3,076,557) 1,899,603 4,976,160
Fund Balances, October 1 6,473,135 6,473,135 6,473,135 0
Fund Balances, September 30 3,723,578$ 3,396,578$ 8,372,738$ 4,976,160$
See reconciliation to GAAP basis on page 95.
92
CITY OF COLLEGE STATION, TEXAS
Parks Projects Fund
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Buget and Actual (Budgetary Basis)
For the Fiscal Year Ended September 30, 2005
Original
Budget
Revised
Budget Actual
Variance
Over
(Under)
Revenues
Charges for Services 68,300$ 68,300$ 49,726$ (18,574)$
Investment Income 7,000 7,000 35,672 28,672
Total Revenues 75,300 75,300 85,398 10,098
Expenditures
Current
Reimbursed Administrative 10,000 10,000 10,000 0
Other 0 0 922 922
Capital Outlay 2,203,000 2,203,000 1,713,262 (489,738)
Debt Issuance Costs 0 0 17,419 17,419
Total Expenditures 2,213,000 2,213,000 1,741,603 (471,397)
Deficiency of Revenues Under Expenditures (2,137,700) (2,137,700) (1,656,205) 481,495
Other Financing Sources
Proceeds from Long-Term Debt Issuance 1,775,000 1,775,000 1,842,374 67,374
Transfers In 370,000 370,000 507,520 137,520
Total Other Financing Sources 2,145,000 2,145,000 2,349,894 204,894
Change in Fund Balances 7,300 7,300 693,689 686,389
Fund Balances, October 1 386,336 386,336 386,336 0
Fund Balances, September 30 393,636$ 393,636$ 1,080,025$ 686,389$
See reconciliation to GAAP basis on page 95.
93
CITY OF COLLEGE STATION, TEXAS
Streets Projects Funds
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended September 30, 2005
Original
Budget
Revised
Budget Actual
Variance
Over
(Under)
Revenues
Intergovernmental 580,000$ 580,000$ 88,400$ (491,600)$
Investment Income 300,000 300,000 492,696 192,696
Other 0 0 35,236 35,236
Total Revenues 880,000 880,000 616,332 (263,668)
Expenditures
Current
Purchased Professional Services 264,000 264,000 233,260 (30,740)
Reimbursed Administrative 519,549 519,549 519,549 0
Capital Outlay 5,490,624 5,490,624 5,373,320 (117,304)
Debt Issuance Costs 30,000 30,000 39,676 9,676
Total Expenditures 6,304,173 6,304,173 6,165,805 (138,368)
Deficiency of Revenues Under Expenditures (5,424,173) (5,424,173) (5,549,473) (125,300)
Other Financing Sources
Proceeds from Long-Term Debt Issuance 4,700,000 4,700,000 4,739,489 39,489
Transfers In 652,624 652,624 472,814 (179,810)
Total Other Financing Sources 5,352,624 5,352,624 5,212,303 (140,321)
Change in Fund Balances (71,549) (71,549) (337,170) (265,621)
Fund Balances, October 1 19,160,316 19,160,316 19,160,316 0
Fund Balances, September 30 19,088,767$ 19,088,767$ 18,823,146$ (265,621)$
See reconciliation to GAAP basis on page 95.
94
CITY OF COLLEGE STATION, TEXAS
Adjustments to Capital Projects Fund Revenues and
Expenditures to Reconcile from Budget Basis to GAAP Basis
For the Fiscal Year Ended September 30, 2005
Business
Park
Drainage
Projects
General
Government
Projects
Parks
Projects
Streets
Projects
Change in Fund Balances - Budget Basis (1,014,381)$ (992,815)$ 1,899,603$ 693,689$ (337,170)$
Revenues:
Market Adjustment for Investments (25,092) (56,268) (60,709) (16,064) (152,338)
Reclass Revenue 0 (949) 0 0 0
Expenditures:
Bad Debt Expense 0 (6,323) 0 0 0
Reclass Expense (6,358) (11,951) (23,554) (515) (401,107)
Arbitrage Expense 0 (15,566) (5,290) (20,439) (84,705)
Change in Fund Balances - GAAP Basis (1,045,831)$ (1,083,872)$ 1,810,050$ 656,671$ (975,320)$
95
96
97
COMBINING FINANCIAL STATEMENTS
NONMAJOR ENTERPRISE FUNDS
Sanitation - to account for all sanitation collection and disposal activities by the City for both residential
and commercial customers.
Northgate Parking Garage - to account for revenues and expenses related to the operation and
maintenance of the Northgate parking garage and parking lot.
CITY OF COLLEGE STATION, TEXAS
Combining Statement of Net Assets
Nonmajor Enterprise Funds
As of September 30, 2005
Sanitation
Northgate
Parking Garage Total
Current Assets
Equity in Cash and Cash Equivalents 147,353$ 232,954$ 380,307$
Equity in Investments 311,834 492,986 804,820
Receivables
Accrued Interest 2,283 4,422 6,705
Accounts 649,119 9,283 658,402
Notes 12,522 0 12,522
Less Allowance for Uncollectible Accounts (74,330) (197) (74,527)
Inventories 9,243 0 9,243
Total Current Assets 1,058,024 739,448 1,797,472
Equity in Joint Venture 7,206,852 0 7,206,852
Property and Equipment
Buildings 0 5,723,063 5,723,063
Machinery and Equipment 1,149,026 128,303 1,277,329
Accumulated Depreciation (1,120,024) (668,788) (1,788,812)
Land 0 709,650 709,650
Total Property and Equipment 29,002 5,892,228 5,921,230
Total Assets 8,293,878 6,631,676 14,925,554
Liabilities
Current Liabilities
Accounts Payable 54,171 7,599 61,770
Accrued Liabilities 99,460 11,064 110,524
Other Deferred Revenues 0 53,746 53,746
Total Current Liabilities 153,631 72,409 226,040
Current Liabilities Payable from Restricted Assets
Refundable Deposits 0 7,599 7,599
Total Current Liabilities Payable from Restricted Assets 0 7,599 7,599
Noncurrent Liabilities
Accrued Vacation 31,836 2,160 33,996
Total Noncurrent Liabilities 31,836 2,160 33,996
Total Liabilities 185,467 82,168 267,635
Net Assets
Invested in Capital Assets, net of related debt 29,002 5,892,228 5,921,230
Unrestricted 8,079,409 657,280 8,736,689
Net Assets 8,108,411$ 6,549,508$ 14,657,919$
98
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, 2005
Sanitation
Northgate
Parking Garage Total
Operating Revenues
Garbage Collection Fees 5,095,630$ 0$ 5,095,630$
Charges for Services 0 474,700 474,700
Other 54,899 0 54,899
Total Operating Revenues 5,150,529 474,700 5,625,229
Operating Expenses
Salaries and Benefits 1,515,933 225,675 1,741,608
Supplies 237,081 16,762 253,843
Maintenance 531,080 20,575 551,655
Purchased Professional Services 268,533 95,113 363,646
Purchased Property Services 1,298,698 40,629 1,339,327
Other Purchased Services 584,834 6,539 591,373
Reimbursed Administrative 472,354 23,354 495,708
Depreciation 11,353 166,702 178,055
Other 27,674 350 28,024
Total Operating Expenses 4,947,540 595,699 5,543,239
Operating Income (Loss) 202,989 (120,999) 81,990
Nonoperating Revenues (Expenses)
Investment Income 10,898 16,280 27,178
Reimbursed Expenses 675 100 775
Earnings in Joint Venture (91,031) 0 (91,031)
Other, Net (36,554) 5,827 (30,727)
Total Nonoperating Revenues (Expenses) (116,012) 22,207 (93,805)
Income (Loss) Before Transfers 86,977 (98,792) (11,815)
Transfers
Transfers Out (401,359) (200,095) (601,454)
Total Transfers (401,359) (200,095) (601,454)
Change in Net Assets (314,382) (298,887) (613,269)
Beginning Net Assets 8,422,793 6,848,395 15,271,188
Ending Net Assets 8,108,411$ 6,549,508$ 14,657,919$
99
CITY OF COLLEGE STATION, TEXAS
Combining Statement of Cash Flows
Nonmajor Enterprise Funds
For the Fiscal Year Ended September 30, 2005
Northgate
Parking
Sanitation Garage Total
Cash Flows from Operating Activities:
Cash Received from Customers 5,083,331$ 526,132$ 5,609,463$
Cash Payments to Suppliers for Goods and Services (3,417,496) (201,872) (3,619,368)
Cash Payments to Employees for Services (1,523,234) (223,794) (1,747,028)
Customer Deposits Received 0 4,354 4,354
Cash Received for Reimbursed Expenses 0 100 100
Cash Received for Miscellaneous Revenues 0 5,827 5,827
Cash Paid for Miscellaneous Expenses (36,821) 0 (36,821)
Net Cash Provided by Operating Activities 105,780 110,747 216,527
Cash Flows from Noncapital Financing Activities:
Transfers Out to Other Funds (401,359) (200,095) (601,454)
Net Cash Used by Noncapital Financing Activities (401,359) (200,095) (601,454)
Cash Flows from Investing Activities:
Purchase of Investments (832,805) (1,248,473) (2,081,278)
Proceeds from Sale and Maturities of
Investment Securities 1,092,980 1,371,869 2,464,849
Investment Income 13,053 16,037 29,090
Net Cash Provided by Investing Activities 273,228 139,433 412,661
Net Increase (Decrease) in Cash and Cash Equivalents (22,351) 50,085 27,734
Cash and Cash Equivalents, Oct. 1 169,704 182,869 352,573
Cash and Cash Equivalents, Sept. 30 147,353$ 232,954$ 380,307$
Reconciliation of Operating Income (Loss) to Net Cash
Provided by Operating Activities:
Operating Income (Loss) 202,989$ (120,999)$ 81,990$
Adjustment to Reconcile Operating Income (Loss) to Net
Cash Provided by Operating Activities:
Depreciation, Bad Debt Expense, Inventory Loss 11,353 166,702 178,055
Provision for Uncollectible Accounts 23,009 (35) 22,974
Miscellaneous Nonoperating Revenues 0 5,927 5,927
Miscellaneous Nonoperating Expenses (36,821) 0 (36,821)
Changes in Assets and Liabilities:
Change in Accounts Receivable (67,198) (2,314) (69,512)
Change in Deferred Revenue 0 53,746 53,746
Change in Inventory 1,001 0 1,001
Change in Accounts Payable (37,039) (1,803) (38,842)
Change in Accrued Liabilities 15,787 3,288 19,075
Change in Refundable Deposits 0 4,354 4,354
Change in Accrued Vacation (7,301) 1,881 (5,420)
Total Adjustments (97,209) 231,746 134,537
Net Cash Provided by Operating Activities 105,780$ 110,747$ 216,527$
100
101
COMBINING FINANCIAL STATEMENTS
INTERNAL SERVICE FUNDS
Communication Services - to account for the activities related to the operation and maintenance of the City’s
radio and telephone systems.
Employee Benefits - to account for self-insurance activity related to administration of the City's health benefits
plan.
Equipment Replacement - to account for the purchase of City equipment such as vehicles and large motorized
equipment, telephone and radio systems, and replacement assets for existing technological infrastructure
equipment not budgeted in other funds.
Fleet Maintenance - to account for all activities related to the management of the City’s vehicles and heavy
equipment, including preventive maintenance and vehicle repair activities.
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, 2005
Communication
Services
Employee
Benefits
Equipment
Replacement
Fleet
Maintenance
Print/Mail
Services
Current Assets
Equity in Cash and Cash Equivalents 23,339$ 1,248,626$ 2,414,245$ 31,799$ 0$
Equity in Investments 49,390 2,642,386 5,109,112 67,294 0
Receivables
Accrued Interest 254 18,765 37,616 270 (458)
Accounts 0 7,314 0 0 0
Other 0 0 0 0 0
Less Allowance for Uncollectible Accounts 0 (1,994) 0 0 0
Inventories 0 0 0 113,559 28,347
Prepaid Costs 0 0 0 0 10,997
Total Current Assets 72,983 3,915,097 7,560,973 212,922 38,886
Property and Equipment
Buildings 0 0 0 746,575 0
Machinery and Equipment 1,207,944 0 21,432,863 279,154 145,918
Accumulated Depreciation (1,088,932) 0 (13,390,181) (437,679) (136,069)
Construction in Progress 0 0 221,714 0 0
Total Property and Equipment 119,012 0 8,264,396 588,050 9,849
Total Assets 191,995 3,915,097 15,825,369 800,972 48,735
Liabilities
Current Liabilities
Accounts Payable 3,976 109,871 25,072 141,972 14,556
Due to Other Funds 0 0 0 0 65,381
Claims Payable 0 472,586 0 0 0
Accrued Liabilities 11,501 0 0 24,732 7,779
Total Current Liabilities 15,477 582,457 25,072 166,704 87,716
Noncurrent Liabilities
Claims Payable 0 0 0 0 0
Accrued Vacation 8,030 0 0 36,101 11,986
Total Noncurrent Liabilities 8,030 0 0 36,101 11,986
Total Liabilities 23,507 582,457 25,072 202,805 99,702
Net Assets
Invested in Capital Assets 119,012 0 8,264,396 588,050 9,849
Unreserved 49,476 3,332,640 7,535,901 10,117 (60,816)
Total Net Assets 168,488$ 3,332,640$ 15,800,297$ 598,167$ (50,967)$
102
Property and
Casualty Unemployment Utility Billing
Workers'
Compensation Total
101,368$ 38,584$ 60,162$ 99,517$ 4,017,640$
214,519 81,653 127,316 210,600 8,502,270
1,366 567 816 1,352 60,548
30,073 0 26,378 0 63,765
0 0 10,722 0 10,722
(4,013) 0 (18,622) 0 (24,629)
0 0 0 0 141,906
0 0 0 0 10,997
343,313 120,804 206,772 311,469 12,783,219
0 0 0 0 746,575
0 0 1,581,933 0 24,647,812
0 0 (904,890) 0 (15,957,751)
0 0 0 0 221,714
0 0 677,043 0 9,658,350
343,313 120,804 883,815 311,469 22,441,569
6,481 0 10,139 0 312,067
0 0 0 0 65,381
81,515 0 0 340,611 894,712
0 0 39,400 0 83,412
87,996 0 49,539 340,611 1,355,572
198,255 0 0 566,235 764,490
0 0 56,868 0 112,985
198,255 0 56,868 566,235 877,475
286,251 0 106,407 906,846 2,233,047
0 0 677,043 0 9,658,350
57,062 120,804 100,365 (595,377) 10,550,172
57,062$ 120,804$ 777,408$ (595,377)$ 20,208,522$
103
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, 2005
Communication
Services
Employee
Benefits
Equipment
Replacement
Fleet
Maintenance
Print/Mail
Services
Operating Revenues
Charges for Services 703,597$ 0$ 3,087,377$ 1,595,949$ 444,800$
Premiums 0 5,009,830 0 0 0
Other 0 18,103 0 0 0
Total Operating Revenues 703,597 5,027,933 3,087,377 1,595,949 444,800
Operating Expenses
Salaries and Benefits 345,118 0 0 710,265 201,662
Supplies 47,259 0 4,482 597,693 105,034
Maintenance 75,468 0 1,500 24,952 28,251
Purchased Professional Services 0 0 0 868 30
Purchased Property Services 12,358 0 0 16,365 39,437
Other Purchased Services 24,474 690 0 38,756 54,756
Claims 0 3,269,873 0 0 0
Administration Fees 0 340,599 0 0 0
Premiums 0 400,060 0 0 0
Reimbursed Administrative 110,517 53,821 0 150,118 38,912
Depreciation 24,980 0 2,622,844 24,161 8,054
Other 0 5,239 0 59,814 0
Total Operating Expenses 640,174 4,070,282 2,628,826 1,622,992 476,136
Operating Income (Loss) 63,423 957,651 458,551 (27,043) (31,336)
Nonoperating Revenues (Expenses)
Investment Income (118) 64,458 140,526 3,558 (1,904)
Reimbursed Expenses 0 2,278 0 845 0
Other, Net 0 897 150,387 0 493
Total Nonoperating Revenues (Expenses) (118) 67,633 290,913 4,403 (1,411)
Income (Loss) Before Transfers 63,305 1,025,284 749,464 (22,640) (32,747)
Transfers
Transfers In 0 0 859,621 147,455 0
Transfers Out (505) 0 (414,538) 0 (126)
Total Transfers (505) 0 445,083 147,455 (126)
Change in Net Assets 62,800 1,025,284 1,194,547 124,815 (32,873)
Beginning Net Assets, October 1, as restated 105,688 2,307,356 14,605,750 473,352 (18,094)
Ending Net Assets, September 30 168,488$ 3,332,640$ 15,800,297$ 598,167$ (50,967)$
104
Property and
Casualty Unemployment Utility Billing
Workers'
Compensation Total
0$ 0$ 2,160,000$ 0$ 7,991,723$
589,210 35,867 0 610,552 6,245,459
0 0 158,430 16,222 192,755
589,210 35,867 2,318,430 626,774 14,429,937
0 0 1,242,417 0 2,499,462
0 0 90,987 0 845,455
0 0 43,096 0 173,267
0 0 25,584 14,000 40,482
0 0 33,834 0 101,994
0 0 393,962 348 512,986
421,755 33,454 0 400,230 4,125,312
28,308 0 0 50,000 418,907
227,351 0 0 111,830 739,241
124,277 0 463,083 136,277 1,077,005
0 0 63,497 0 2,743,536
12,445 0 7,412 0 84,910
814,136 33,454 2,363,872 712,685 13,362,557
(224,926) 2,413 (45,442) (85,911) 1,067,380
5,644 2,270 3,108 4,291 221,833
26,937 0 0 0 30,060
0 0 (202) 0 151,575
32,581 2,270 2,906 4,291 403,468
(192,345) 4,683 (42,536) (81,620) 1,470,848
0 0 0 0 1,007,076
0 0 (1,010) 0 (416,179)
0 0 (1,010) 0 590,897
(192,345) 4,683 (43,546) (81,620) 2,061,745
249,407 116,121 820,954 (513,757) 18,146,777
57,062$ 120,804$ 777,408$ (595,377)$ 20,208,522$
105
CITY OF COLLEGE STATION, TEXAS
Internal Service Funds
Combining Statement of Cash Flows
For the Fiscal Year Ended September 30, 2005
Communication Employee Equipment Fleet Print/Mail
Services Benefits Replacement Maintenance Services
Cash Flows from Operating Activities:
Cash Received from Customers 703,597$ 5,059,019$ 3,087,377$ 1,607,275$ 444,800$
Cash Payments to Suppliers for Goods and Services (286,595) (4,111,762) 19,090 (839,963) (283,365)
Cash Payments to Employees for Services (344,970) 0 0 (700,366) (193,569)
Cash Received for Reimbursed Expenses 0 2,278 0 845 0
Cash Received for Miscellaneous Revenues 0 897 0 0 493
Cash Received from Other Funds 0 0 0 0 33,599
Cash Paid for Miscellaneous Expenses 0 0 (9,621) (45,932) 0
Net Cash Provided (Used) by Operating Activities 72,032 950,432 3,096,846 21,859 1,958
Cash Flows from Noncapital Financing Activities:
Transfers In from Other Funds 0 0 859,621 147,455 0
Transfers Out to Other Funds (505) 0 (414,538) 0 (126)
Net Cash Provided (Used) by Noncapital Financing Activities (505) 0 445,083 147,455 (126)
Cash Flows from Capital and Related Financing Activities:
Acquisition of Capital Assets 0 0 (3,436,314) (70,334) 0
Proceeds from Sale of Assets 0 0 30,084 0 0
Net Cash Used by Capital and Related Financing Activities 0 0 (3,406,230) (70,334) 0
Cash Flows from Investing Activities:
Purchase of Investments (110,752) (6,435,596) (12,749,109) (150,511) 0
Proceeds from Sale and Maturities of
Investment Securities 62,567 6,014,380 13,226,782 83,217 0
Investment Income (360) 60,432 143,383 113 (1,832)
Net Cash Provided (Used) by Investing Activities (48,545) (360,784) 621,056 (67,181) (1,832)
Net Increase in Cash and Cash Equivalents 22,982 589,648 756,755 31,799 0
Cash and Cash Equivalents, Oct. 1 357 658,978 1,657,490 0 0
Cash and Cash Equivalents, Sept. 30 23,339$ 1,248,626$ 2,414,245$ 31,799$ $ 0
Reconciliation of Operating Income (Loss) to Net Cash
Provided (Used) by Operating Activities:
Operating Income (Loss) 63,423$ 957,651$ 458,551$ (27,043)$ (31,336)$
Adjustment to Reconcile Operating Income (Loss) to Net
Cash Provided (Used) by Operating Activities:
Depreciation 24,980 0 2,622,844 24,161 8,054
Miscellaneous Nonoperating Revenues 0 3,175 0 845 493
Miscellaneous Nonoperating Expenses 0 0 (9,621) 0 0
Change in Assets and Liabilities:
Change in Accounts Receivable 0 33,080 0 11,326 0
Change in Inventories 0 0 0 (41,250) 1,125
Change in Prepaid Costs 0 0 0 0 (4,622)
Change in Accounts Payable (16,519) (16,685) 25,072 89,853 (13,448)
Change in Due to Other Funds 0 0 0 (45,932) 33,599
Change in Claims Payable 0 (26,789) 0 0 0
Change in Accrued Liabilities 1,104 0 0 4,419 2,292
Change in Accrued Vacation (956) 0 0 5,480 5,801
Total Adjustments 8,609 (7,219) 2,638,295 48,902 33,294
Net Cash Provided (Used) by Operating Activities 72,032$ 950,432$ 3,096,846$ 21,859$ 1,958$
106
Property and Utility Workers'
Casualty Unemployment Billing Compensation Total
727,471$ 35,867$ 2,315,407$ 626,774$ 14,607,587$
(692,589) (33,454) (1,054,524) (647,649) (7,930,811)
0 0 (1,226,238) 0 (2,465,143)
26,937 0 0 0 30,060
0 0 0 0 1,390
0 0 0 0 33,599
0 0 (1,528) 0 (57,081)
61,819 2,413 33,117 (20,875) 4,219,601
0 0 0 0 1,007,076
0 0 (1,010) 0 (416,179)
0 0 (1,010) 0 590,897
0 0 0 0 (3,506,648)
0 0 0 0 30,084
0 0 0 0 (3,476,564)
(525,137) (203,705) (312,544) (530,582) (21,017,936)
502,229 211,133 302,658 571,646 20,974,612
5,610 2,314 3,102 4,664 217,426
(17,298) 9,742 (6,784) 45,728 174,102
44,521 12,155 25,323 24,853 1,508,036
56,847 26,429 34,839 74,664 2,509,604
101,368$ 38,584$ 60,162$ 99,517$ 4,017,640$
(224,926)$ 2,413$ (45,442)$ (85,911)$ 1,067,380$
0 0 63,497 0 2,743,536
26,937 0 0 0 31,450
0 0 (1,528) 0 (11,149)
142,274 0 2,553 0 189,233
0 0 0 0 (40,125)
0 0 0 6,000 1,378
5,106 0 (2,142) 0 71,237
0 0 0 0 (12,333)
112,428 0 0 59,036 144,675
0 0 4,680 0 12,495
0 0 11,499 0 21,824
286,745 0 78,559 65,036 3,152,221
61,819$ 2,413$ 33,117$ (20,875)$ 4,219,601$
107
108
109
CAPITAL ASSETS USED IN THE OPERATION
OF GOVERNMENTAL FUNDS
110
Governmental funds capital assets:
Buildings and Building Improvements 19,547,902$
Improvements 17,751,028
Machinery and Equipment 3,502,937
Infrastructure 153,763,936
Construction in Progress 19,277,213
Land 25,034,570
238,877,586$
Investments in governmental funds capital assets by source:
Capital Projects 149,195,957$
General Fund Revenues 5,711,679
Special Revenue Funds 12,271,924
Contributions 71,698,026
238,877,586$
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 Operation of Governmental Funds
Schedule by Source
As of September 30, 2005
111
Improvements Machine/Tool
Function and Activity Total Buildings Other than Bldg Equipment Infrastructure Land
Development Services:
Development Services Administration 24,029$ 8,900$ -$ 15,129$ -$ -$
Engineering - - - - - -
Planning - - - - - -
24,029 8,900 - 15,129 - -
Fire:
Emergency Medical Services 312,952 - - 312,952 - -
Fire Administration 188,744 - - 188,744 - -
Fire Prevention - - - - - -
Fire Suppression 259,175 - - 259,175 - -
760,871 - - 760,871 - -
Fiscal Services:
Accounting - - - - - -
Fiscal Administration - - - - - -
Municipal Court 79,991 - - 79,991 - -
Purchasing - - - - - -
Risk Management - - - - - -
79,991 - - 79,991 - -
General Government:
Budget/Research - - - - - -
Community Development 20,840 - - - - 20,840
City Manager 79,321 - - 79,321 - -
City Programs 1,437,504 - - - - 1,437,504
City Secretary - - - - - -
Economic Development 14,470 - - - - 14,470
Human Resources - - - - - -
Legal - - - - - -
Capital Projects 20,642,210 - 177,225 314,330 607,061 19,543,594
Public Relations 123,426 - - 123,426 - -
22,317,771 - 177,225 517,077 607,061 21,016,408
Office of Technology and Information Services:
Geographic Information Systems 32,292 - - 32,292 - -
Library Services 236,969 - - 196,969 - 40,000
Management Information Systems 938,655 - - 938,655 - -
OTIS Administration 155,994 - - 155,994 - -
1,363,910 - - 1,323,910 - 40,000
Police:
Criminal Investigation 36,620 - - 36,620 - -
Communications/Jail - - - - - -
Police Administration 323,662 - - 323,662 - -
Professional Standards - - - - - -
Quartermaster - - - - - -
Special Services - - - - - -
Technical Services - - - - - -
Uniform Patrol 23,440 - - 23,440 - -
383,722 - - 383,722 - -
CITY OF COLLEGE STATION, TEXAS
Capital Assets Used in the Operation of Governmental Funds
Schedule by Function and Activity
As of September 30, 2005
112
Improvements Machine/Tool
Function and Activity Total Buildings Other than Bldg Equipment Infrastructure Land
CITY OF COLLEGE STATION, TEXAS
Capital Assets Used in the Operation of Governmental Funds
Schedule by Function and Activity
As of September 30, 2005
Parks and Recreation:
Forestry 24,025 - 13,735 10,290 - -
Parks Administration 207,050 - 207,050 - - -
Parks Maintenance/Operations 195,517 - 66,456 129,061 - -
Capital Projects 16,152,914 898,445 14,503,817 - - 750,652
Recreation - - - - - -
Special Facilities 22,619 - 10,619 12,000 - -
16,602,125 898,445 14,801,677 151,351 - 750,652
Public Works:
Drainage Maintenance - - - - - -
Engineering 9,387 - - 9,387 - -
Facilities Maintenance 19,975 5,255 - 14,720 - -
Public Works Administration 20,517 - - 20,517 - -
Capital Projects 45,524,156 - 1,430,035 - 42,789,138 1,304,983
Streets Maintenance 178,409 - - 178,409 - -
Traffic Signs/Markings - - - - - -
Traffic Signals 47,853 - - 47,853 - -
45,800,297 5,255 1,430,035 270,886 42,789,138 1,304,983
Other:
Non-departmental 132,267,657 18,635,302 1,342,091 - 110,367,737 1,922,527
132,267,657 18,635,302 1,342,091 - 110,367,737 1,922,527
Construction in Progress 19,277,213 2,398,016 2,869,338 1,512,499 12,497,360 -
19,277,213 2,398,016 2,869,338 1,512,499 12,497,360 -
Total Governmental Funds Capital Assets 238,877,586$ 21,945,918$ 20,620,366$ 5,015,436$ 166,261,296$ 25,034,570$
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.
113
Governmental Funds Governmental Funds
Capital Assets Capital Assets
Function and Activity 9/30/04 Additions Retirements Transfers/Other 9/30/05
Development Services:
Development Services Administration -$ 24,029$ -$ -$ 24,029$
Engineering - - - - -
Planning - - - - -
- 24,029 - - 24,029
Fire:
Emergency Medical Services 178,414 134,537 - - 312,951
Fire Administration 188,745 - - - 188,745
Fire Prevention - - - - -
Fire Suppression 247,061 12,114 - - 259,175
614,220 146,651 - - 760,871
Fiscal Services:
Accounting - - - - -
Fiscal Administration - - - - -
Municipal Court 44,563 35,428 - - 79,991
Purchasing - - - - -
Risk Management - - - - -
44,563 35,428 - - 79,991
General Government:
Budget/Research - - - - -
Community Development 20,840 - - - 20,840
City Manager 79,322 - - - 79,322
City Programs 1,437,504 - - - 1,437,504
City Secretary - - - - -
Economic Development 14,470 - - - 14,470
Human Resources - - - - -
Legal - - - - -
Capital Projects 19,816,016 826,193 - - 20,642,209
Public Relations 63,642 59,784 - - 123,426
21,431,794 885,977 - - 22,317,771
Office of Technology and Information Services:
Geographic Information Systems 18,585 13,707 - - 32,292
Library Services 190,724 46,246 - - 236,970
Management Information Systems 855,650 92,781 (9,777) - 938,654
OTIS Administration 155,994 - - - 155,994
1,220,953 152,734 (9,777) - 1,363,910
Police:
Criminal Investigation 36,620 - - - 36,620
Communications/Jail - - - - -
Police Administration 269,359 54,303 - - 323,662
Professional Standards - - - - -
Quartermaster - - - - -
Special Services - - - - -
Technical Services - - - - -
Uniform Patrol 5,350 18,090 - - 23,440
311,329 72,393 - - 383,722
CITY OF COLLEGE STATION, TEXAS
Capital Assets Used in the Operation of Governmental Funds
Schedule of Changes by Function and Activity
As of September 30, 2005
114
Governmental Funds Governmental Funds
Capital Assets Capital Assets
Function and Activity 9/30/04 Additions Retirements Transfers/Other 9/30/05
CITY OF COLLEGE STATION, TEXAS
Capital Assets Used in the Operation of Governmental Funds
Schedule of Changes by Function and Activity
As of September 30, 2005
Parks and Recreation:
Forestry 24,025 - - - 24,025
Parks Administration 172,265 34,785 - - 207,050
Parks Maintenance/Operations 174,082 21,435 - - 195,517
Capital Projects 13,575,690 2,577,224 - - 16,152,914
Recreation - - - - -
Special Facilities 12,000 10,619 - - 22,619
13,958,062 2,644,063 - - 16,602,125
Public Works:
Drainage Maintenance - - - - -
Engineering 9,387 - - - 9,387
Facilities Maintenance 19,975 - - - 19,975
Public Works Administration 20,517 - - - 20,517
Capital Projects 38,750,966 6,917,490 (144,300) - 45,524,156
Streets Maintenance 100,313 78,095 - - 178,408
Traffic Signs/Markings - - - - -
Traffic Signals - 47,854 - - 47,854
38,901,158 7,043,439 (144,300) - 45,800,297
Other:
Non-departmental 127,563,105 4,704,552 - - 132,267,657
127,563,105 4,704,552 - - 132,267,657
Construction in Progress 15,063,588 14,014,970 (9,801,345) - 19,277,213
15,063,588 14,014,970 (9,801,345) - 19,277,213
Total Governmental Funds Capital Assets 219,108,772$ 29,724,236$ (9,955,422)$ -$ 238,877,586$
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.
115
116
117
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$ 2004 7,536,427 1,953,189 9,654,447 7,189,495 1,586,114 5,004,976 6,154,862 2,652,957 3,448,533 2,690,998 41,120,750 6,542,184 7,214,296 5,460,285 108,209,513 2005 6,457,556 2,467,187 10,666,318 7,853,876 1,580,317 5,401,568 6,549,466 2,881,863 3,895,520 5,430,745 47,815,339 7,908,695 7,262,208 5,523,023 121,693,681 (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 FUNCTION118
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$ 2004 80,044,245 3,208,957 10,446,058 34,073,652 1,886,905 4,386 129,664,203 2005 85,525,495 2,629,494 6,427,203 35,618,984 2,435,403 (111,916) 132,524,663 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 StationCITY OF COLLEGE STATION, TEXASGOVERNMENT-WIDE REVENUESLAST TEN FISCAL YEARS (1)Program Revenues General Revenues
119
Fines, OtherFiscal Licenses & Forfeits Charges for FinancingYear Taxes Permits & Penalties Services Transfers All Other Sources Total1996 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 2004 31,209,942 1,112,766 2,956,836 2,398,165 8,422,120 1,149,458 8,919,386 56,168,673 2005 32,611,788 1,025,013 3,518,913 2,480,781 8,968,215 1,517,136 871,803 50,993,649 (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 YEARS120
GeneralFiscal Year Property Sales Franchise Mixed Drink Total1996 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 2004 14,668,641 14,957,697 1,974,587 281,298 31,882,223 2005 15,888,475 15,445,404 1,718,491 259,686 33,312,056 Source: City of College StationCITY OF COLLEGE STATION, TEXASGENERAL GOVERNMENTAL TAX REVENUES BY SOURCELAST TEN FISCAL YEARS121
General Public Parks and Library Capital Reimbursed All Debt TransfersFiscal Year Government Police Fire Works Recreation Services Outlay Administrative Other Service Out Total1996 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 2004 10,693,348 9,803,577 7,275,289 5,534,404 6,387,846 665,291 978,568 (5,486,919) 1,648,676 8,813,797 9,499,773 55,813,650 2005 11,556,067 10,829,081 7,964,785 6,100,247 6,778,068 694,445 796,245 (6,052,138) 852,378 10,088,946 1,638,578 51,246,702 (1) Expenditures presented include the General and Debt Service Funds.Source: City of College StationCITY OF COLLEGE STATION, TEXASGENERAL GOVERNMENTAL EXPENDITURES AND OTHER USES BY FUNCTION (1)LAST TEN FISCAL YEARS122
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 Levy1996 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%2002 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%2004 14,092,814 13,790,565 97.86% 125,543 13,916,108 98.75% 321,487 2.28%2005 15,270,852 14,971,605 98.04% 123,397 15,095,002 98.85% 327,844 2.15%Source: City Of College StationCITY OF COLLEGE STATION, TEXASLAST TEN FISCAL YEARSPROPERTY TAX LEVIES AND COLLECTIONS123
Land and Personal Property Less Exemptions Less TIF (2)Fiscal Year Improvements and Minerals and Abatements Captured Value Total1996 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 2004 3,201,775,895 320,496,233 493,364,734 39,971,363 2,988,936,031 2005 3,494,141,544 353,712,884 556,722,986 40,802,035 3,250,329,407 (1) Assessed Value is 100% of the estimated actual value.(2) Tax Increment Financing District (TIF) Sources: Brazos County Appraisal District 2004 Certified Appraisal RollCITY OF COLLEGE STATION, TEXASASSESSED VALUE OF TAXABLE PROPERTIES (1)LAST TEN FISCAL YEARS124
Fiscal Year (1) City School County Total (3) City School County City School County1996 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 2004 0.4653 1.7700 0.4350 2.6703 100% 100% 100% 14,092,814 57,990,642 26,931,269 2005 0.4640 1.7700 0.4726 2.7066 100% 100% 100% 15,270,852 63,028,955 31,890,149 (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 $100 of Assessed Value) Tax Ratios Original Tax LeviesCITY OF COLLEGE STATION, TEXASPROPERTY TAX RATES, RATIOS AND LEVIESALL DIRECT AND OVERLAPPING GOVERNMENTSLAST TEN FISCAL YEARS125
Percentage of Total Current Assessments Assessments OutstandingFiscal Year Assessment Collected Collected (%) Assessments1996 - 17,217 21.70% 62,113$ 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 2004 - - 0.00% - 2005 - - 0.00% - Source: City of College Station Fiscal Services DepartmentCITY OF COLLEGE STATION, TEXASPAVING ASSESSMENT COLLECTIONSLAST TEN FISCAL YEARS126
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 $100 at 100% valuation. CITY OF COLLEGE STATION, TEXASCOMPUTATION OF LEGAL DEBT MARGINSEPTEMBER 30, 2005127
Ratio of NetEstimated Assessed Gross Less Debt Service Net Net Bonded Debt Bonded DebtFiscal Year Population Value Bonded Debt Cash Funds Bonded Debt To Assessed Valuation Per Capita1996 60,040 (1) 1,611,621,369$ 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 5612004 80,219 (1) 2,988,936,031 47,085,000 585,336 46,499,664 1.56 5802005 81,699 (1) 3,250,329,407 49,800,000 912,353 48,887,647 1.50 598Source:(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 YEARS128
Per Taxing Body Amount As Of Percent Amount Capita *ESTIMATED OVERLAPPING DEBTCollege Station I.S.D. (1) 58,785,000$ 8/31/2005 83.48% 49,073,718$ 601$ Brazos County (2) 51,510,000$ 9/30/2005 46.80% 24,106,680 295 Bryan I.S.D (3) 105,570,000$ 9/1/2005 5.17% 5,457,969 67 78,638,367 963 NET BONDED DEBTCity of College Station (4) 88,905,000$ 9/30/2005 100.00% 88,905,000 1,088 NET BONDED AND ESTIMATED OVERLAPPING DEBT 167,543,367$ 2,051$ *Population: 81,699Source:(1) College Station Independent School District(2) Brazos County Auditor(3) Bryan Independent School District(4) City of College Station Fiscal Services DepartmentCITY OF COLLEGE STATION, TEXASSCHEDULE OF DIRECT AND ESTIMATED OVERLAPPING DEBTSEPTEMBER 30, 2005Net Debt City's Share
129
Total GeneralInterest, Fiscal Governmentaland Other Total Debt ExpendituresFiscal Year Principal Charges Service and Other Uses Ratio1996 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%2004 5,445,000 3,275,554 8,720,554 55,813,650 15.62%2005 3,195,000 2,273,863 5,468,863 51,246,702 10.67%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 USES130
OperatingExpensesOperating (Excluding Net Average Annual Maximum AnnualFiscal Year Revenues Depreciation) Revenues Total Coverage Total Coverage1996 (1)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 2.012004 64,785,122 44,719,241 20,065,881 5,651,966 3.55 7,998,465 2.512005 70,636,853 51,125,745 19,511,108 5,522,447 3.53 8,364,747 2.33(1) 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 YEARS131
Number Number Numberof of of Calendar Year Permits Value Permits Value Permits Value1996 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 2004 549 80,567,342 143 94,924,256 692 175,491,598 2005 553 109,359,951 159 27,863,784 712 137,223,735 Source: City of College Station Planning & Development ServicesResidential Commercial TotalCITY OF COLLEGE STATION, TEXASCONSTRUCTION PERMITSLAST TEN CALENDAR YEARS132
Percent of Total2005 Assessed AssessedTaxpayer Type of Business Valuation ValuationCBL & Associates Retail Mall 50,480,675$ 1.55%College Station Hospital, LP Medical 48,724,190 1.50%Alkosser/Weinberg Housing 32,014,545 0.99%Verizon Communications, Inc Utility 29,663,440 0.91%Wal-Mart's/Sam's Retail 27,583,820 0.85%Common Wealth Austin Housing 21,500,740 0.66%University Heights-College Station Housing 20,773,980 0.64%HE Butt Store Property Co Grocery 20,178,780 0.62%JER College Station Hotel Hotel 18,350,600 0.57%University Commons Housing 18,260,720 0.56%287,531,490$ 8.85%Source: Brazos County Appraisal DistrictCITY OF COLLEGE STATION, TEXASPRINCIPAL TAXPAYERSSEPTEMBER 30, 2005133
FY2005 Total Percent of Utility KWH KWHCustomer Type of Business Consumption ConsumedCSISD Schools 18,609,489 2.57%City of College Station Municipality 16,820,228 2.32%CBL & Associates Retail Mall 14,122,051 1.95%Texas A&M University 10,008,480 1.38%Wal-Mart Retail 7,666,400 1.06%College Station Medical Ctr Hospital 7,175,880 0.99%Kroger Retail Grocery 6,850,800 0.94%Albertsons Retail Grocery 6,661,301 0.92%US Dept of Agriculture Government 5,165,200 0.71%HE Butt Store Property Co Retail Grocery 5,157,480 0.71%TOTAL 98,237,309 13.55%Total KWH Consumption for the period October 1, 2004 to September 30, 2005 was724,962,988Source: City of College Station Utility Billing Division CITY OF COLLEGE STATION, TEXASPRINCIPAL UTILITY CUSTOMERSSEPTEMBER 30, 2005134
Self InsuredInsurance Company Coverage Retention LimitsState National Insurance Co. General Liability $250,000 occurrence $5 millionGeneral Aggregate $15 millionState National Insurance Co. Auto Liability $250,000 CSL $5 millionState National Insurance Co. Workers Compensation $250,000 $5 millionState National Insurance Co. Employer's Liability $250,000 $5 millionState National Insurance Co. Law Enforcement Liability $250,000 $5 millionGeneral Aggregate $15 millionState National Insurance Co. Public Officials Liability $250,000 $5 millionGeneral Aggregate $15 millionFederal Insurance Co. Employee Theft $100,000 $300,000Federal Insurance Co. Premises $100,000 $300,000Federal Insurance Co. Transit $100,000 $300,000Federal Insurance Co. Depositors Forgery $100,000 $300,000Federal Insurance Co. Computer Theft Fund $100,000 $1 millionAffiliated FM Ins. Co. Property Coverage $100,000 $125.5 millionAffiliated FM Ins. Co. Mobile Equipment $100,000 $7 millionAffiliated FM Ins. Co. Boiler & Machinery $100,000 $50 millionAffiliated FM Ins. Co. Certified Act of Terrorism Coverage $100,000 $125.5 millionAffiliated FM Ins. Co. Flood $100,000 $2.5 millionAffiliated FM Ins. Co. Gross Earnings $100,000 $1 millionAffiliated FM Ins. Co. Newly Acquired Property $100,000 $1.5 millionAffiliated FM Ins. Co. Coverage A & B Demolition & Increased Cost $100,000 $1 million eachCITY OF COLLEGE STATION, TEXASSUMMARY OF INSURANCE COVERAGESeptember 30, 2005135
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 40.82004 47.2Miles of streets Paved 385 Linear MilesUnpaved 4.0 Lane MilesMiles of sidewalks 97 MilesFire Protection:Number of stations 4Number of full-time employees 114Police Protection:Number of employees (sworn) 100Number of employees (civilian) 47Number of patrol units 21One jail facility with a capacity of 30MISCELLANEOUS STATISTICAL AND DEMOGRAPHIC DATASEPTEMBER 30, 2005CITY OF COLLEGE STATION, TEXAS136
RECREATION:Number of playgrounds 35 Number of gyms 1Number of basketball courts 20 Number of volleyball courts 8Number of soccer fields 26 Number of nature trails 9Number of softball/baseball fields 25 Number of open play areas 30Number of tennis courts 14 Number of picnic pavilions 10Number of picnic shelters 19 Number of jogging/walking trails 26Number of swimming pools 3PARKS:Facility Acres Facility AcresAnderson 8.94 Luther Jones 1.80Arboretum/Bee Creek 43.50 Merry Oaks 4.60Bill Madeley 5.14 Nantucket 3.90Brison 9.20 Oaks 7.50Brother's Pond 16.12 Parkway 1.90Castlegate 8.26 Pebble Creek 10.20Castlerock 5.86 Raintree 13.00Central 47.20 Richard Carter 7.14Conference Center 2.30 Sandstone 15.21Cy Miller 2.50 Southeast Park 66.68Eastgate 1.80 Southern Oaks 14.49Edelweiss 12.30 Southwest Park Site 9.42Edelweiss Gardens 13.60 Southwood Complex 44.70Emerald Forest 4.59 Steeplechase Park Site 9.00Gabbard 10.67 Thomas 16.10Georgia K. Fitch 11.30 University Park Site 10.20Hensel-TAMU 29.70 Veterans Athletic 150.00Jack and Dorothy Miller 10.00 W.A. Tarrow (includes Lincoln) 21.26John Crompton 15.26 Westfield 4.29Lemon Tree 15.40 Windwood 1.37Lick Creek 515.54 Wolfpen Creek 19.49Lion's 1.50 Woodcreek 6.60Longmire 4.16 Woodland Hills 14.40TOTAL ACREAGE1,248.09CITY OF COLLEGE STATION, TEXASMISCELLANEOUS STATISTICAL AND DEMOGRAPHIC DATASEPTEMBER 30, 2005(Continued)137
UTILITY FUNDS:Electric Customers (Connections)36,284 Average Electrical Consumption: 60,413,524 KWH/MonthWater Customers (Connections)32,266 Average Water Consumption: 283,429 MGW/MonthNumber of Employees:Electric59Water27Sewer42Water Capacity:Number of Wells6Combined Capacity of Wells 28 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 Lines341 milesElectric Capacity:Maximum Capacity 280 megawattsAnnual Peak Demand180 kwNumber of Substations4Miles of Distribution Lines 450 milesMiles of Sewer Lines271 milesSolid Waste Collection Fund:Number of Users (Units) 28,399 Methodology Curbside pickup using automated containersCITY OF COLLEGE STATION, TEXASMISCELLANEOUS STATISTICAL AND DEMOGRAPHIC DATASEPTEMBER 30, 2005(Continued)138
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) 86,283 Last municipal election 42,206 Number of votes cast in:Last general election (Brazos County) 54,904 Last municipal election 3,623 Percentage of registered voters voting in:Last general election (Brazos County) 64.00%Last municipal election 8.58%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, 2005(Continued)139
Year University Enrollment1996 41,8921997 41,4611998 43,3891999 43,4422000 44,0262001 44,6182002 45,1432003 44,8132004 44,4352005 45,089Source: WWW.TAMU.EDUTotal Number Number PercentYear Labor Force Employed Unemployed Unemployed1996 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 2.42004 35,348 34,709 639 1.82005 41,057 39,584 1473 3.6Source: Texas WorkforcePRIMARY LABOR FORCE FOR COLLEGE STATIONCITY OF COLLEGE STATION, TEXASMISCELLANEOUS STATISTICAL AND DEMOGRAPHIC DATASEPTEMBER 30, 2005(Continued)ACTUAL TEXAS A&M UNIVERSITY ENROLLMENTBY FALL SEMESTERS140