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CITY OF COLLEGE STATION, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
PREPARED BY THE
CITY OF COLLEGE STATION FISCAL SERVICES DEPARTMENT
JEFF KERSTEN, CHIEF FINANCIAL OFFICER
JANET DUDDING, CPA, ASSISTANT DIRECTOR OF FISCAL SERVICES
CITY OF COLLEGE STATION, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
Table of Contents
Page
i
INTRODUCTORY SECTION
Letter of Transmittal ................................................................................................................................vi
GFOA Certificate of Achievement for Excellence in Financial Reporting.............................................xvi
Organizational Chart............................................................................................................................xvii
Principal City Officials .........................................................................................................................xviii
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 .................................................................................31
Statement of Cash Flows – Proprietary Funds .......................................................................32
Notes to the Financial Statements.................................................................................................35
Required Supplementary Information:
Schedule of Funding Progress – Texas Municipal Retirement System ........................................69
CITY OF COLLEGE STATION, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
Table of Contents
Page
ii
Schedule of Revenues, Expenditures, and Changes in Fund
Balances, Budget and Actual – General Fund...............................................................................70
Supplementary Information:
Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet – Nonmajor Governmental Funds................................................73
Combining Statement of Revenues, Expenditures, and Changes
in Fund Balances – Nonmajor Governmental Funds..............................................................79
Schedules of Revenues, Expenditures, and Changes in Fund Balances – Budget
and Actual:
Special Revenue Funds:
Community Development ..........................................................................................84
Convention Center......................................................................................................85
Hotel Occupancy Tax.................................................................................................86
Memorial Cemetery....................................................................................................87
Parks Escrow..............................................................................................................88
Red Light Camera ......................................................................................................89
Northgate Tax Increment Financing District...............................................................90
Wolf Pen Creek Tax Increment Financing District .....................................................91
Capital Projects Funds:
Business Park.............................................................................................................92
Drainage Projects.......................................................................................................93
General Government Projects....................................................................................94
Parks and Recreation Projects...................................................................................95
Streets Projects..........................................................................................................96
Debt Service......................................................................................................................97
Nonmajor Enterprise Funds:
Combining Statement of Net Assets ...............................................................................100
CITY OF COLLEGE STATION, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
Table of Contents
Page
iii
Combining Statement of Revenues, Expenses, and Changes
in Fund Net Assets...................................................................................................101
Combining Statement of Cash Flows .............................................................................102
Internal Service Funds:
Combining Statement of Net Assets ...............................................................................104
Combining Statement of Revenues, Expenses, and Changes
in Fund Net Assets...................................................................................................106
Combining Statement of Cash Flows .............................................................................108
Capital Assets Used in the Operation of Governmental Funds:
Schedule by Source........................................................................................................113
Schedule by Function and Activity..................................................................................114
Schedule of Changes by Function and Activity ..............................................................116
STATISTICAL SECTION
Net Assets by Component ..................................................................................................................121
Changes in Net Assets........................................................................................................................122
Program Revenues by Function/Program...........................................................................................124
Fund Balances, Governmental Funds ................................................................................................125
Changes in Fund Balances, Governmental Funds.............................................................................126
Tax Revenue by Source, Governmental Funds ..................................................................................128
Assessed Value and Estimated Actual Value of Taxable Property ....................................................129
Direct and Overlapping Property Tax Rates.......................................................................................130
Principal Property Taxpayers..............................................................................................................131
Property Tax Levies and Collections ..................................................................................................132
Taxable Sales by Category.................................................................................................................133
Direct and Overlapping Sales Tax Rates............................................................................................134
Sales Tax Revenue Payers by Industry..............................................................................................135
Ratios of Outstanding Debt by Type...................................................................................................136
CITY OF COLLEGE STATION, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
Table of Contents
Page
iv
Ratios of Net General Bonded Debt Outstanding...............................................................................137
Direct and Overlapping Governmental Activities Debt........................................................................138
Legal Debt Margin Information............................................................................................................139
Pledged-Revenue Coverage...............................................................................................................140
Demographic and Economic Statistics ...............................................................................................141
Principal Employers ............................................................................................................................142
Full-Time-Equivalent City Government Employees by Function/Program .........................................143
Operating Indicators by Function/Program.........................................................................................144
Capital Asset Statistics by Function/Program.....................................................................................146
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CITY OF COLLEGE STATION
INTRODUCTORY
SECTION
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March 16, 2009
Honorable Mayor, Members of the City Council, and
Citizens of the City of College Station, Texas
The City Manager and the Fiscal Services Department are pleased to submit the Comprehensive
Annual Financial Report for the City of College Station, Texas (the "City") for the fiscal year
ended September 30, 2008.
This report is published to provide to the City Council, City staff, our citizens, our bondholders and
other interested parties detailed information concerning the financial condition of the City
government. Responsibility for both the accuracy of the presented data and the completeness
and fairness of the presentation, including all disclosures, rests with the City.
To the best of our knowledge and belief, the data is accurate in all material aspects and is
organized in a manner designed to fairly present the financial position and results of operations of
the City as measured by the financial activity of its various funds. We also believe that all
disclosures necessary to enable the reader to gain the maximum understanding of the City's
financial affairs have been included.
The Local Government Code, Section 103.001 (a) states: "A municipality shall have its records
and accounts audited annually and shall have an annual financial statement prepared based on
the audit." Likewise the Fiscal and Budgetary Policy Statements adopted annually by the City
Council as a part of the City's Approved Budget include a requirement that the City shall annually
have an audit performed by an outside, independent auditor. The City has complied with this
requirement, and the Independent Auditors' Report has been included in this report.
THE REPORT
This report is comprised of three sections: Introductory, Financial and Statistical. The
Introductory Section includes this transmittal letter, a listing of the principal City officials, and an
organizational chart of the City. The Financial Section contains the Independent Auditors' Report
on the basic financial statements, Management's Discussion and Analysis ("MD&A"), the basic
financial statements with related notes, and combining and individual fund statements and
schedules. The MD&A is a narrative introduction, overview, and analysis to accompany the basic
financial statements. This letter of transmittal is designed to complement the MD&A and should
be read in conjunction therewith. The City of College Station's MD&A may be found immediately
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following the Independent Auditors' Report. The Statistical Section provides financial and
demographic information that is relevant to a financial statement reader.
The Financial section described above is prepared in accordance with generally accepted
accounting principles for governments as prescribed by the Governmental Accounting Standards
Board ("GASB") and other professional associations, as applicable.
CITY PROFILE
Location
The City of College Station, incorporated in 1938, is located in Brazos County in East Central
Texas, approximately 140 miles north of the Gulf of Mexico, approximately 90 miles northwest of
Houston, 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 89,903 as of August 2008. 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, Municipal Court Judge and Internal Auditor. Almost
all other City staff work under the direction of the City Manager.
The Reporting Entity and Services Provided
This report includes all government activities, organizations and functions for which the City is
financially accountable as defined by the GASB. Based on these criteria, no other governmental
organizations are included in the report. For additional information on the reporting entity, refer to
Note I-A in the basic financial statements.
The City provides a full range of municipal services as prescribed by statute or charter. These
services include police, fire and emergency medical services, parks and recreational facilities,
library services, street maintenance and construction, public improvements, general
administrative services and electrical, water, sewer, and sanitation systems. Internal services of
the City accounted for on a cost reimbursement basis are print/mail, risk management, employee
health and disability, equipment replacement, fleet management, and communications.
Accounting System and Budgetary Control
The City's accounting records for general governmental operations are maintained on a modified
accrual basis, with the revenues recorded when available and measurable, and expenditures
recorded when the services or goods are received and the liabilities incurred. Accounting records
for the City's utilities and other proprietary activities are maintained on a full accrual basis with
revenues recorded when earned and expenses recorded as goods or services are provided to the
user.
In developing and maintaining the City's accounting system, consideration is given to the
adequacy of the internal control structure. Internal accounting controls are designed to provide
reasonable, but not absolute, assurance regarding: (1) the safeguarding of assets against loss
from unauthorized use or disposition, and (2) the reliability of financial records for preparing
financial statements and maintaining accountability for assets. The concept of reasonable
assurance recognizes that the cost of a control should not exceed the benefits likely to be
derived, and the evaluation of costs and benefits requires estimates and judgments by
management.
All internal accounting control evaluations occur within the above framework. We believe that the
City's internal accounting controls adequately safeguard assets and provide reasonable
assurance of proper recording of financial transactions.
The annual budget serves as the foundation for the City's financial planning and control. The City
Charter provides that the City Manager will submit a proposed budget to the City Council between
30 and 90 days prior to the end of the fiscal year. The City's budget is prepared by function, fund
and department. The City Council is required to hold a public hearing on the proposed budget
and to adopt a budget no later than the 27th day of the last month of the fiscal year. The City's
fiscal year begins on October 1 and ends on September 30. Controls of budgetary spending are
at the department level within the City's General Fund and at the individual fund appropriation in
all other funds. The City Council must authorize transfers between General Fund departments
and all increases in total spending in any fund.
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 seen continued growth in fiscal year 2008, despite the significant slowing of
the national economy. The concentration of stable employment sectors such as government and
higher education contribute to the steady growth that College Station has experienced over the
last several years. This growth provides some of the additional resources needed to maintain
service levels to the citizens and visitors of College Station.
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
1.6 percent to 2.6 percent range. As a result of the BLS change, the unemployment rate for fiscal
year 2007 as of October was approximately 3.7 percent. In fiscal year 2008 the unemployment
rate was approximately 3.7 percent.
Sales tax collections in College Station continued to see growth in fiscal year 2008. This is
consistent with growth in sales tax receipts the City has experienced over the last several years.
In fiscal year 2008, sales tax revenue was up by 9.7 percent over fiscal year 2007 to
$19,822,906. The rate of sales tax growth is anticipated to slow as a result of the challenges
seen in the national economy.
College Station continued to see housing and commercial development. There were 685 new
housing starts during 2008. Total ad valorem assessed valuation increased by approximately
$491 million or approximately 12 percent for fiscal year 2008 over fiscal year 2007. Commercial
development continued to be strong with both new and redevelopment. Several new commercial
businesses opened in College Station in 2008. The University Drive corridor continued to have
new business and increased traffic. The rate of growth is anticipated to slow in the near future.
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 a billion dollars annually to the local
economy. TAMU has consistently ranked among the top 50 universities in the United States.
Each year, TAMU's approximately 2,500 faculty members conduct an estimated $450 million
worth of sponsored research projects. Student enrollment at TAMU was 46,542 as of September
2008. TAMU employs more than 20,000 full-time and part-time staff.
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2008 Major Accomplishments
2008 has been a year of significant accomplishment in College Station coupled with challenges
both internally and externally. Internally, we continued to face the challenge of several vacancies
in key positions within the organization. Most of those vacancies have now been filled with very
qualified and experienced staff but there was impact on our staff during the year. Externally, we
faced the challenge of the slowing economy and the threat of its impact locally. We continue to
monitor the effect of the economy locally, but fortunately the impact has been minimal to date,
Economic and fiscal indicators show the local economy has continued to grow in the last year,
despite the slowing national economy.
Below are a highlight of accomplishments for 2008:
• Police Department Management Review – The FY 08 budget included funds for both the
management review and additional funds in the amount of $600,000 for phase 1
implementation. The management review was completed and a report was presented to the
City Council in December 2008. Upon completion of the consultant’s report, Chief Ikner
made a presentation and recommendation on the Department’s philosophy of “Community –
Oriented Policing and Geographical Accountability” and multi year improvement plan.
• General Obligation Bond Election – One of the significant projects faced during 2008 was
the preparation for the 2008 bond election. The staff worked with the City Council and the
Capital Improvement Committee to formulate a list of projects and cost estimates along with
financial analyses to determine the impact of bond issuances with various options. Voters
approved 4 of 6 propositions on the November 4th, 2008 ballot totaling $76,950,000 for
streets and transportation, city library, fire station and parks. The City Hall and Community
Center propositions were defeated. Design work will begin on the first phase of the 7 year
program immediately.
• 2008 General Obligation Bond Sale - In 2008 the City sold over $35 million in General
Obligation Bonds and Certificates of Obligation to fund City capital projects. This was a
successful debt issue during a difficult economic environment.
• Major New Executive Appointments – We are pleased that the Manager’s Office along with
the City’s Human Resource Department has been able to attract several outstanding new
executives to lead critical areas of the organization. This is an outstanding group of
professionals who bring a new enthusiasm and energy to the organization.
o Assistant City Manager – David Neeley
o Police Chief – Michael A. Ikner
o Director of Parks and Recreation – Marco (Tony) Cisneros
o Director of Capital Projects - Chuck Gilman
• Comprehensive Plan Update – We presented the draft of the revised Comprehensive plan
– the first such effort in more than a decade. The projected adoption date is the summer of
2009.
• Strong and Sustainable Neighborhoods – We accomplished several key council initiatives
including: establishment and implementation of the single family overlay protection zones;
establishment of a historic preservation ordinance; adoption of revised traffic impact analysis
requirements; revision of Subdivision Regulations to better manage development in the
extra-territorial jurisdiction (ETJ); amended the Code of Ordinances to require rental
registration for all rental single family and duplex properties and establish party host
responsibilities.
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• Management Planning System - The Management Planning System requires that all our
departments build Strategic Business Plans to operationalize Council’s strategic planning
efforts in our daily operations. All plans are now being updated in anticipation of the
upcoming budget process.
• Environmental Awareness
o Green College Station – We established a citywide program to achieve long-term
sustainability and resource conservation. The focus areas include:
1. Energy conservation and renewable energy resources;
2. Water conservation;
3. Solid Waste and hazardous waste reduction;
4. Land use/green and open space/development codes;
5. Air quality.
The policy statement adopted by City Council on January 24, 2008 directed the
Manager’s Office to develop the Green College Station Action Plan. The follow up
report will be given to City Council at the Mini-retreat in January 2009.
o CSU Begins Offering Renewable Power – We plan to offer CSU electric customers
the opportunity to participate in renewable electric rates (wind power) beginning in
2009 through the Wind Watts program.
o Performed Signal Coordination of Major Thoroughfares - The City of College
Station conducts signal coordination studies of roadways which operate under signal
control to ensure that the signals are properly timed to provide an optimum level of
vehicle progression along the roadway. Research has shown that properly timed
signals can reduce vehicle delay by up to 10 percent and reduce vehicle emission.
o Enacted Conservation-Oriented Water Rates - Conservation-oriented water rate
structures are a recognized Best Management Practice for water conservation
because they provide a price signal discouraging the wasteful or inefficient use of
water. City Council adopted a tiered water rate structure for Residential Single Family
Customers effective October 1, 2008.
o BVSWMA Hosts Two Household Hazardous Waste Collections - BVSWMA staff
successfully conducted two Household Hazardous Waste Collection Events in 2008,
resulting in the safe disposal of approximately 200,000 Lbs of electronic waste and
hazardous materials. The events were open to all residents in the seven county
region of the Brazos Valley at no charge. Acceptable materials included: paint
thinners and paint, pool chemicals, car batteries, automobile waste, chemicals,
gasoline and more.
o Began Update of Bicycle, Pedestrian, and Greenways Master Plan - Greenways
are becoming increasingly recognized as ways to connect people and places with
alternative transportation choices, such as bicycling, skating, and walking. Updating
these plans, and updating them in conjunction, will ensure alternative modes of
transportation are available for the population
• Economic and Community Development - Through the leadership of our Economic and
Community Development staff, development and redevelopment of properties within the city
have remained active during the past year. Examples of projects that our staff directly
encouraged or facilitated are: the planning and development of Lynntech Science Park; the
redevelopment of Central Station Shopping Center; Northgate redevelopment; the design and
implementation of the Santour Court Development.
• Fire Station # 3 - Fire Station #3 was completed in April 2008 and dedicated on August 16
with approximately 200 citizens in attendance. The station is designed to harmonize with the
surrounding residential neighborhoods and blend with the environment. Fire Chief Magazine,
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in its November 2008 issue, granted the station its highest award, the “gold satellite” award
for the station design. The new station improved response time and coverage to citizens due
to its geographic location.
• Red Light Camera Program - In 2008 the City implemented a red light camera program at
four intersections in College Station. This program required the cooperation and coordination
of many different departments and divisions throughout the City.
• Annexation – We annexed more than 1,500 acres with an additional 3,400 acres entering
into non-annexation development agreements. The 2009 budget includes significant capital
expenditures planned to service the newly annexed areas.
• Safe Route to School Program – A new sidewalk was installed on Holik Street between
George Bush Drive and Anna Street adjacent to Oakwood Intermediate School and A&M
Consolidated Middle School. Other locations are being considered and evaluated for the
program.
• Community Emergency Operations Center (CEOC) – Construction was completed and the
CEOC opened in downtown Bryan in June 2008. The CEOC is staffed with management
personnel from College Station, Bryan, Brazos County and Texas A&M University. The first
full activation of this new emergency facility occurred in response to Hurricane Ike in
September 2008.
• Electric Utility - Our Electric Utility continues to provide quality service at a low cost to our
citizens while accommodating significant growth in the community. Major projects for the
year were:
1. Completed the transmission line reconductor from Switch Station to Post Oak to
South Substation, increasing the capacity of the transmission system to meet current
and future growth.
2. Commissioned a new transmission line into switch station from Brazos Electric which
increases reliability due to multiple transmission feeds.
3. Successfully completed a North American Electric Reliability Corporation (NERC)
Compliance Audit with no penalties or violations.
• Implementation of Communications Plan - Council authorized the implementation of a new
approach to our Public Communications efforts last year. We are pleased to report we are
making strides to implement various components of the Communication Plan. Listed are
some of the elements of the Communication Plan completed in 2008.
1. Broadcast: TV 19 improvements – shows, scheduling, news crawl
2. Publications: new design for “Inside College Station” resident newsletter
3. Website: new features, including – radio podcasts, integrated content features
4. Community Relations: Citizen University, CS101 with TAMU
5. Marketing: supported city events (Starlight), and campaigns (CARES)
• Municipal Court Security - In early 2008, the Municipal Court successfully implemented
new security measures including the installation of a metal detector as well as an X-ray
machine. These security improvements have helped make the Municipal court a safer place
for customers and staff.
• Utility Bill Payment System - With the cooperation of and coordination with Information
Technology, the Utility Customer Service Division successfully implemented a new online
Utility Bill payment system. As of April 2008, approximately 10,000 customers out of 35,000
customers were registered to be able to pay their bill online. Currently, 10% of College
Station Utilities customers are receiving their utility bills electronically resulting in lower
printing and postage costs.
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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, 2008 are fairly presented in conformity with U.S. generally
accepted accounting principals. The independent auditors' report is presented as the first
component of the financial section of this report.
Certificate of Achievement
The Government Finance Officers Association of the United States and Canada ("GFOA")
awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of College
Station for its Comprehensive Annual Financial Report ("CAFR") for the Fiscal Year ended
September 30, 2007. The Certificate of Achievement is a prestigious national award recognizing
conformance with the highest standards for preparation of state and local government financial
reports.
In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily
readable and efficiently organized CAFR with contents that conform to program standards. Such
reports must satisfy both generally accepted accounting principles and applicable legal
requirements.
A Certificate of Achievement is valid for a period of one year only. The City of College Station
has received a Certificate of Achievement for twenty-six out of the last twenty-seven years. We
believe our current report continues to conform to the Certificate of Achievement Program
requirements, and we are submitting it to the GFOA to determine its eligibility for another
certificate.
Responsibility for Financial Reporting
The City's Senior Management, including the City Manager and Chief Financial Officer, accept
the responsibility for the accuracy, integrity, consistency, and reliability of the financial
statements. They also acknowledge their responsibility for assuring the continuous monitoring of
the City's system of internal controls for compliance in order to prevent misappropriation of assets
and fraudulent financial reporting. Additionally, they confirm their commitment to fostering a
strong ethical climate and communicating those standards to employees through personnel rules,
administrative regulations, and City law.
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CITIZENS OF COLLEGE STATION MAYOR AND COUNCIL CITY SECRETARY MUNICIPAL JUDGES CITY ATTORNEY CITY MANAGER FIRE POLICE PLANNING & DEVELOPMENT SERVICES PARKS & RECREATION PUBLIC WORKS WATER SERVICES FISCAL SERVICES ADMINISTRATION SUPPRESSION PREVENTION EMERGENCY MEDICAL SERVICES (EMS) ADMINISTRATION UNIFORM PATROL CRIMINAL INVESTIGATIONS SPECIAL SERVICES QUARTERMASTER COMMUNICATIONS / JAIL RECRUITING/ TRAINING INFORMATION SERVICES PLANNING ADMINISTRATION MAPPING COORDINATION DEVELOPMENT COORDINATION BUILDING INSPECTION ADMINISTRATION STREETS DRAINAGE FLEET TRAFFIC SIGNS/SIGNALS SANITATION ENGINEERING PLANT OPERATIONS INTERNAL AUDITOR PARKING FACILITIES MAINTENANCE FIELD OPERATIONS EMERGENCY MANAGEMENT ASSISTANT CITY MANAGER ASSISTANT CITY MANAGER ECONOMIC DEVELOPMENTCOMMUNITY DEVELOPMENT ELECTRIC UTILITY APPOINTED BOARDS AND COMMISSIONS BVSWMA GIS & ASSET MANAGEMENT ENVIROMENTAL SERVICES WATER RESOURCES INFORMATION TECHNOLOGY COMMUNICATION SERVICES ADMINISTRATION E-GOVERNMENT GEOGRAPHIC INFORMATION SERVICESMANAGEMENT INFORMATION SYSTEMS MAIL ADMINISTRATION RECREATION SPECIAL FACILITIES PARKS OPERATIONS PARKS OPERATIONS FORESTRY FORESTRY SPECIAL FACILITIES LIBRARY ASSISTANT DIRECTOR TREASURER ASSISTANT DIRECTOR ACCOUNTING OFFICE OF BUDGET & STRATEGIC PLANNING MUNICIPAL COURT PURCHASING UTILITY CUSTOMER SERVICE CAPITAL IMPROVEMENT PROJECTS PUBLIC COMMUNICATION AND MARKETING HUMAN RESOURCES ADMINISTRATION CODE ENFORCEMENT xvii
City of College Station, Texas
Fiscal Year 2008
Principal City Officials
Elected Officials
City Administration
City Manager ..........................................................................................................................................................Glenn Brown
Assistant City Manager...........................................................................................................................................Kathy Merrill
Assistant City Manager.......................................................................................................................................... David Neeley
Chief Financial Officer...............................................................................................................................................Jeff Kersten
Director of Water Services Department ............................................................................................................. David Coleman
Director of Electric Utility..................................................................................................................................... David Massey
Chief of Police........................................................................................................................................................Michael Ikner
Chief of Fire..........................................................................................................................................................Robert B. Alley
Director of Public Works...........................................................................................................................................Mark Smith
Director of Capital Projects................................................................................................................................. Charles Gilman
Director of Parks and Recreation................................................................................................................... Ma rco A. Cisneros
Director of Planning and Development Services.................................................................................................Bob Cowell, Jr.
Director of Information Technology...........................................................................................................................Ben Roper
Director of Public Communications......................................................................................................................Wayne Larson
Director of Human Resources...........................................................................................................................................Vacant
Director of Economic and Community Development ..............................................................................................David Gwin
City Attorney....................................................................................................................................................Harvey Cargill, Jr.
City Secretary.....................................................................................................................................................Connie L. Hooks
Internal Auditor.............................................................................................................................................................Ty Elliott
Dennis
Maloney
Council ‐ Place 3
Lawrence
Stewart
Council ‐ Place 5
David
Ruesink
Council ‐ Place 6
Ben White
Mayor
Lynn
McIlhaney
Mayor Pro Tem
John
Crompton
Council ‐ Place 1
James
Massey
Council ‐ Place 2
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CITY OF COLLEGE STATION
FINANCIAL
SECTION
Management's Discussion and Analysis
For the Fiscal Year Ended September 30, 2008
(Unaudited)
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, 2008. 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
$371,612,091 (net assets). Of this amount,
$103,661,498 (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
$19,230,336 during the fiscal year.
• At the close of the current fiscal year, the
City's governmental funds reported
combined ending fund balances of
$72,330,936, an increase of $2,877,233
when compared to the prior year.
• Approximately 29 percent of the combined
governmental funds ending fund balance, or
$21,205,922 is available for spending at the
City's discretion (unreserved-undesignated
fund balance).
• During fiscal year 2008, the City's total debt
increased by approximately $35,895,000.
Key factors in this increase were the
issuance of $9,455,000 in General
Obligation Improvement Bonds and
$26,440,000 in business-purpose and
governmental Certificates of Obligation.
Wolf Pen Creek Trails Phase II
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the City's basic financial
statements. The City's basic financial statements are comprised of three components:
(1) Government-wide financial statements
(2) Fund financial statements
(3) Notes to the financial statements.
This report also contains other supplementary information in addition to the basic financial
statements themselves.
City of College Station, Texas 3
Management's Discussion and Analysis
For the Fiscal Year Ended September 30, 2008
(Unaudited)
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-xviii
+
Management's Discussion and Analysis
Pages 3-20
Government-Wide Financial Statements
Basic Pages 23-25
Financial Governmental Fund Financial Statements
Statements Pages 26-29
And Proprietary Fund Financial Statements Financial
RSI Pages 30-33 Section
Notes to the Financial Statements
Pages 35-67
Additional Required Supplementary Information
Pages 69-70
Information on individual funds and other
supplementary information not required by GAAP
Pages 71-117
+
Trend Data and Non-financial Data
Pages 119-146
Statistical
Section
City of College Station, Texas 4
Management's Discussion and Analysis
For the Fiscal Year Ended September 30, 2008
(Unaudited)
Government-Wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview
of the City's finances, in a manner similar to a private-sector business.
The statement of net assets presents information on all of the City's assets and liabilities, with
the difference between the two reported as net assets. Over time, increases or decreases in net
assets may serve as a useful indicator of whether or not the financial position of the City is
improving or deteriorating.
The statement of activities presents information showing how the City's net assets changed
during the most recent fiscal year. All changes in net assets are reported as soon as the
underlying event giving rise to the change occurs, regardless of the timing of related cash flows.
Thus, revenues and expenses are reported in this statement for some items that will only result in
cash flows in future fiscal periods, such as revenues pertaining to uncollected taxes and
expenses pertaining to earned but unused vacation.
Both of the government-wide financial statements distinguish functions of the City that are
principally supported by taxes and intergovernmental revenues (governmental activities) from
other functions that are intended to recover all or a significant portion of their costs through user
fees and charges (business-type activities). The governmental activities of the City include
general government, fiscal services, police, information 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, wastewater, sanitation, and the
northgate parking garage. The government-wide financial statements can be found on pages 23-
25.
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have
been segregated for specific activities or objectives. The City, like other state and local
governments, uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements. All of the funds of the City can be divided into governmental funds and
proprietary funds.
Governmental Funds
Governmental funds are used to account for essentially the same functions reported as
governmental activities in the government-wide financial statements. However, unlike the
government-wide financial statements, governmental fund financial statements focus on near-
term inflows and outflows of spendable resources as well as on balances of spendable resources
available at the end of the fiscal year. Such information may be useful in determining what
financial resources are available in the near future to finance the City's programs.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements.
By doing so, readers may better understand the long-term impact of the government's near-term
financing decisions. Both the governmental fund balance sheet and the governmental fund
statement of revenues, expenditures, and changes in fund balances provide a reconciliation to
facilitate this comparison between governmental funds and governmental activities.
City of College Station, Texas 5
Management's Discussion and Analysis
For the Fiscal Year Ended September 30, 2008
(Unaudited)
The City maintains several individual governmental funds organized according to their type
(special revenue, debt service, and capital projects). Information is presented separately in the
governmental fund balance sheet and in the governmental fund statement of revenues,
expenditures, and changes in fund balances for the General Fund, Debt Service Fund, and
Streets Projects Fund, all of which are considered to be major funds. Data from the remaining
governmental funds are combined into a single, aggregated presentation. Individual fund data for
each of the non-major governmental funds is provided in the form of combining statements
elsewhere in this report. The governmental fund financial statements can be found on pages 26-
29.
The City adopts an annual appropriated budget for its General Fund, Debt Service Fund, Special
Revenue Funds, and Capital Projects Funds. A budgetary comparison statement has been
provided for the General Fund, Debt Service Fund, Special Revenue Funds, and Capital Projects
Funds to demonstrate compliance with their budgets.
Proprietary Funds
Proprietary funds are generally used to account for services for which the City charges
customers--either outside customers or internal units or departments of the City. Proprietary
funds provide the same type of information as shown in the government-wide financial
statements, only in more detail. The City maintains the following two types of proprietary funds:
Enterprise funds are used to report the same functions presented as business-type
activities in the government-wide financial statements. The City uses enterprise funds to
account for the operations of the electric, water, wastewater, sanitation, and parking
activities of the City. The Electric, Water, and Wastewater funds are considered to be
major funds of the City, while the remaining funds (Sanitation and Northgate Parking
Garage) are presented in aggregate as non-major enterprise funds. Individual fund data
for the non-major enterprise funds can be found in the form of combining statements
elsewhere in this report.
Internal service funds are used to report activities that provide supplies and services for
certain City programs and activities. The City uses internal service funds to account for
communication, fleet maintenance and utility customer services. It also uses internal
service funds to account for equipment replacement; employee benefits; and
unemployment, workers' compensation, and property and casualty insurance. All of
these services, with the exception of utility customer service, predominantly benefit
governmental rather than business-type functions and have been included within
governmental activities in the government-wide financial statements. The Utility
Customer Service Fund has been included with the business-type activities in the
government-wide financial statements. The internal service funds are combined into a
single, aggregated presentation in the proprietary fund financial statements. Individual
fund data for the internal service funds is provided in the form of combining statements
elsewhere in this report.
The proprietary fund financial statements can be found on pages 30-33.
Notes to the Financial Statements
The notes to the financial statements provide additional information that is essential to a full
understanding of the data provided in the government-wide and fund financial statements.
City of College Station, Texas 6
Management's Discussion and Analysis
For the Fiscal Year Ended September 30, 2008
(Unaudited)
Required Supplementary Information
In addition to the basic financial statements and accompanying notes, this report presents on
pages 69-70, 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 71-
117 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 $371,612,091 at the close of the most recent fiscal
year.
The largest portion of the City's net assets (70 percent) reflects its investment of $260,002,603 in
capital assets (e.g., land, buildings, and equipment), less any related outstanding debt used to
acquire those assets. The City uses these capital assets to provide services to citizens;
consequently, these assets are not available for future spending. Although the City's investment
in its capital assets is reported net of related debt, it should be noted that the resources needed to
repay this debt must be provided from other sources, since the capital assets themselves cannot
be liquidated for these liabilities.
Net Assets
Governmental Activities Business-Type Activities Total
2008 2007 2008 2007 2008 2007
Assets
Current and Other Assets 92,449,808$ 87,098,918$ 71,448,999$ 72,642,000$ 163,898,807$ 159,740,918$
Capital Assets 199,832,191 185,641,567 259,314,070 235,974,510 459,146,261 421,616,077
Total Assets 292,281,999 272,740,485 330,763,069 308,616,510 623,045,068 581,356,995
Liabilities
Long-Term Liabilities
Outstanding 103,022,575 100,223,951 123,854,880 105,499,997 226,877,455 205,723,948
Other Liabilities 8,262,912 7,709,172 16,292,610 15,542,120 24,555,522 23,251,292
Total Liabilities 111,285,487 107,933,123 140,147,490 121,042,117 251,432,977 228,975,240
Net Assets
Invested in Capital Assets,
Net of Related Debt 114,935,845 113,750,039 145,066,758 147,043,092 260,002,603 260,793,131
Restricted 6,357,013 5,089,422 1,590,977 3,056,356 7,947,990 8,145,778
Unrestricted 59,703,654 45,967,901 43,957,844 37,474,945 103,661,498 83,442,846
Total Net Assets 180,996,512$ 164,807,362$ 190,615,579$ 187,574,393$ 371,612,091$ 352,381,755$
An additional portion of the City's net assets, $7,947,990 (2 percent) represents resources that
are subject to external restrictions on how they may be used. The remaining balance of
unrestricted net assets, $103,661,498 (28 percent) may be used to meet the government's
ongoing obligations to citizens and creditors. At the end of the current fiscal year, the City was
City of College Station, Texas 7
Management's Discussion and Analysis
For the Fiscal Year Ended September 30, 2008
(Unaudited)
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 $19,230,336 as a result of fiscal year 2008 operations.
The increase is primarily attributable to increases in ongoing revenues and relatively stable
expenses.
The following table provides a summary of the City's operations for the year ended September
30, 2008 and highlights key elements of the increase in the City's net assets:
Changes in Net Assets
For the Fiscal Year Ended September 30, 2008
Governmental Activities Business-Type Activities Total
Revenues 2008 2007 2008 2007 2008 2007
Program Revenues:
Charges for Services 11,668,838$ 10,755,338$ 110,299,679$ 96,245,479$ 121,968,517$ 107,000,817$
Operating Grants and Contributions 1,735,170 2,038,535 - - 1,735,170 2,038,535
Capital Grants and Contributions 3,055,501 5,271,090 5,349,125 4,041,105 8,404,626 9,312,195
General Revenues:
Property Taxes 20,670,112 18,573,309 - - 20,670,112 18,573,309
Sales and Mixed Beverage Taxes 20,241,973 18,449,731 - - 20,241,973 18,449,731
Other Taxes 5,676,291 4,911,446 - - 5,676,291 4,911,446
Interest and Investment Income 3,385,844 4,512,575 1,330,785 1,932,624 4,716,629 6,445,199
Total Revenues 66,433,729 64,512,024 116,979,589 102,219,208 183,413,318 166,731,232
Expenses
General Government 8,551,304 7,654,393 - - 8,551,304 7,654,393
Fiscal Services 2,977,362 2,442,439 - - 2,977,362 2,442,439
Police 13,395,874 12,299,698 - - 13,395,874 12,299,698
Fire 11,359,260 9,472,331 - - 11,359,260 9,472,331
Planning and Development Services 1,910,359 1,603,963 - - 1,910,359 1,603,963
Public Works 9,467,081 6,620,846 - - 9,467,081 6,620,846
Capital Projects 719,391 - - - 719,391 -
Parks and Recreation 10,385,095 9,148,511 - - 10,385,095 9,148,511
Information Technology 2,749,327 2,689,720 - - 2,749,327 2,689,720
Interest on Long Term Debt 3,860,801 4,291,022 - - 3,860,801 4,291,022
Unallocated Depreciation 667,890 6,026,372 - - 667,890 6,026,372
Electric Utility - - 70,485,982 60,242,408 70,485,982 60,242,408
Water Utility - - 8,706,415 8,302,863 8,706,415 8,302,863
Sewer Utility - - 9,159,176 8,179,813 9,159,176 8,179,813
Sanitation Services - - 6,244,639 5,916,431 6,244,639 5,916,431
Parking Operations - - 668,237 591,980 668,237 591,980
Total Expenses 66,043,744 62,249,295 95,264,449 83,233,495 161,308,193 145,482,790
Increase in Net Assets Before
Transfers 389,985 2,262,729 21,715,140 18,985,713 22,105,125 21,248,442
Transfers Net 7,559,165 10,090,589 (10,433,954) (10,090,589) (2,874,789) -
Increase in Net Assets 7,949,150 12,353,318 11,281,186 8,895,124 19,230,336 21,248,442
Net Assets at Beginning of Year 164,807,362 152,454,044 187,574,393 178,679,269 352,381,755 331,133,313
Prior Period Adjustment 8,240,000 - (8,240,000) - -
Net Assets at End of Year 180,996,512$ 164,807,362$ 190,615,579$ 187,574,393$ 371,612,091$ 352,381,755$
City of College Station, Texas 8
Management's Discussion and Analysis
For the Fiscal Year Ended September 30, 2008
(Unaudited)
Governmental activities. Governmental activities increased the City of College Station's net assets
by $7,949,150 thereby accounting for 41 percent of the total growth in net assets. Key elements of
this increase are as follows:
• Property taxes increased $2,096,803 (11.3 percent) during the year. This is primarily the
result of the total ad valorem assessed valuations increasing by $491 million or 12
percent over fiscal year 2007.
• Sales and mixed beverage taxes increased $1,792,242 (9.7 percent) during the year.
This is attributable to continued economic growth in the area.
• Capital grants and contributions decreased $2,215,589. Interest and investment income
decreased $1,126,731.
The chart below illustrates the City's governmental revenues by source. For governmental
activities overall without regard to program, property tax (28 percent) and sales tax (27 percent)
are the largest sources of funds followed by charges for services (16 percent), and grants and
contributions (6 percent). All other governmental revenues account for 23 percent of all
governmental revenues.
City of College Station, Texas
Governmental Revenues By Source
$73,992,894
15%
28%
27%
6%
4%
10%
10%Charges for Services
Grants and Contributions
Property Tax
Sales Tax
Other Taxes
Investment Income
Transfers
City of College Station, Texas 9
Management's Discussion and Analysis
For the Fiscal Year Ended September 30, 2008
(Unaudited)
Another useful chart depicts governmental activity program revenues relative to program
expenses. That data is presented below:
Governmental Activities
Comparison of Program Revenues to Program Expenses
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000General GovernmentFiscal ServicesPoliceFirePlanning and Development ServicesPublic WorksCapital ProjectsParks and RecreationInformation TechnologyInterest on Long-Term DebtUnallocated DepreciationProgram Revenues
Program Expenses
Business-type activities. Business-type activities increased the City of College Station's net
assets by $11,281,186, thereby accounting for 59 percent of the total growth in net assets. Key
elements of this increase are as follows:
• With the continued growth in the area, capital contributions continued to be a major
source of revenue for the electric, water, and wastewater funds. In fiscal year 2008
capital contributions amounted to $5,349,125.
• Electric utility expenses experienced an increase of $10,243,574 or 17 percent from
fiscal year 2007. This is primarily attributable to purchased power expenses.
• Charges for services increased by $14,054,200 or 15 percent from fiscal year 2007 due
to utility rate increases.
City of College Station, Texas 10
Management's Discussion and Analysis
For the Fiscal Year Ended September 30, 2008
(Unaudited)
Revenues for the City's business-type activities are presented in the following chart. Charges for
services provided the largest share of revenues (94 percent) for the City's business-type
activities. It was followed by grants and contributions (5 percent) and investment income (1
percent).
Business-type Revenues
$116,979,589
94%
5%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
70,000,000
80,000,000
90,000,000
Electric Water Wastewater Sanitation Northgate
Parking
Program Revenues
Program Expenses
City of College Station, Texas 11
Management's Discussion and Analysis
For the Fiscal Year Ended September 30, 2008
(Unaudited)
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 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 $72,330,936. Approximately 29 percent ($21,205,922) 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 ($3,817,694),
(2) To liquidate contracts and purchase orders of the prior period ($12,566,000),
(3) For capital improvements ($31,639,361),
(4) For permanent cemetery endowments ($1,756,167),
(5) For police criminal investigation activity ($36,256),
(6) For inventory ($163,063),
(7) For prepaid expenses ($343,525),
(8) For Juvenile Case Manager ($209,943),
(9) For Court Technology ($265,212),
(10) For Court Security ($291,628), and
(11) For Court Efficiency ($36,165).
Overall, revenues for governmental functions totaled $62,580,542 in the fiscal year ended
September 30, 2008, an increase of 7 percent or $4,245,294 from the fiscal year ended
September 30, 2007. Expenditures for governmental functions totaling $90,471,606 increased by
approximately 16 percent ($12,624,809) from the fiscal year ended September 30, 2007. In fiscal
year 2008, expenditures for governmental functions exceeded revenues by $27,891,064. That
amount was 43 percent more than the previous year's amount of $19,511,549 and due to an
increase in capital outlay expenditures in fiscal year 2008 over 2007. The City added a Capital
Projects Department in fiscal year 2008 to expedite capital projects.
City of College Station, Texas 12
Management's Discussion and Analysis
For the Fiscal Year Ended September 30, 2008
(Unaudited)
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 $9,679,913 while the total
fund balance reached $11,985,389. The City's fiscal and budgetary policies require that the
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 18 percent of fiscal year 2008 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 19 percent of
total general fund expenditures, while total fund balance represents 23 percent. The fund
balance continues to meet and exceed the Fiscal and Budgetary Policy of having 15 percent of
expenditures available in fund balance.
The General Fund’s fund balance decreased by $947,200 during the current fiscal year. The key
factors in this change follow:
• Overall expenditures were up by approximately 13 percent, due to an increase in fuel,
transportation costs and petroleum based products, and
• Personnel costs increased due to filling additional full time equivalent positions, including
several top management positions.
The Debt Service Fund ended the fiscal year with a fund balance of $3,817,694. This entire
amount is reserved for the payment of debt service. The net increase in fund balance during the
current fiscal year was $351,636. A $1,018,582 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 $24,388,395. This entire
amount is either reserved for encumbrances related to current capital projects or reserved for
future capital projects. The net increase in fund balance during the current fiscal year was
$2,580,869. This increase is attributable to proceeds received from long term debt issued at the
end of fiscal year 2008.
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 $188,072,531. Approximately 22 percent ($41,922,769) of this total amount constitutes
unrestricted net assets. The remainder of net assets for the proprietary funds, $146,149,762, is
reported as follows:
(1) Invested in capital assets, net of related debt ($144,558,785), and
(2) Restricted for debt service ($1,590,977).
Operating revenues for proprietary activities totaled $107,064,736 for the fiscal year, an increase
of 12.7 percent or $12,052,161 from the previous fiscal year. Operating expenses increased
City of College Station, Texas 13
Management's Discussion and Analysis
For the Fiscal Year Ended September 30, 2008
(Unaudited)
$10,956,560 or 13.9 percent for the same period causing operating income to increase
$1,095,601 or 6.8 percent from the previous year. The proprietary funds reported net non-
operating expenses of $537,409 at the end of fiscal year 2008 as compared to net non-operating
expenses of $1,699,497 in the previous fiscal year. Net assets increased $11,574,164 in fiscal
year 2008. This is $3,252,473 more than the increase reported in fiscal year 2007.
Electric Fund
At the end of the fiscal year, the unrestricted net assets for the Electric Fund totaled $11,707,235.
The electric utility ended the fiscal year with working capital of $10,159,565, a decrease of 1.5
percent from fiscal year 2007. 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, 2008, Electric Fund working capital equaled approximately 14.8
percent of annual operating expenses.
Electric Fund operating revenues increased by 13.8 percent ($9,298,776) during fiscal year 2008,
while operating expenses increased 16.8 percent ($9,922,489) during the same period. This
resulted in a 7.4 percent decrease ($623,713) in operating income. The decrease in operating
income is also attributable to an increase in operating expense due to anticipated higher purchased
power costs. The above resulted in an increase in net assets of $347,502 in the Electric Fund
during the fiscal year.
Water Fund
Unrestricted net assets for the Water Fund at September 30, 2008 were $7,741,310. Working
capital in the Water Fund at the end of fiscal year 2008 was $5,947,058, an increase of
approximately 9.5 percent from fiscal year 2008. Water Fund working capital was 88 percent of
total operating expense and exceeds the minimum 15 percent requirement under the Council's
adopted policy.
Water Fund operating revenues increased by 17 percent ($1,757,933) during fiscal year 2008.
Operating expenses increased 3 percent ($213,829) over fiscal year 2007. This resulted in
operating income increasing by $1,544,104 in fiscal year 2008. The Water Fund's net assets
increased $4,467,419 during the fiscal year, an 89.5 percent increase over the previous year.
Wastewater Fund
The Wastewater Fund's unrestricted net assets at the end of fiscal year 2008 were $8,973,781.
The Wastewater Fund ended the fiscal year with a working capital balance of $6,846,912, which
was 3.8 percent under fiscal year 2007. Wastewater Fund working capital was 91.6 percent of total
operating expenses and is well above the minimum requirement for the fund.
Operating revenues in the Wastewater Fund were $11,184,565, a $642,603 (6 percent) increase
over the previous fiscal year. Operating expenses increased from $6,791,966 to $7,476,022 or 10
percent while operating income decreased by 1 percent from $3,749,996 to $3,708,543.
City of College Station, Texas 14
Management's Discussion and Analysis
For the Fiscal Year Ended September 30, 2008
(Unaudited)
BUDGETARY HIGHLIGHTS
The final amended budget for fiscal year 2008 totaled $275,186,615 for all funds. Of this amount
$218,873,072 (79.54 percent) was budgeted for operations and maintenance expenditures, and
$56,313,543 (20.46 percent) was budgeted for capital improvement projects.
In the General Fund the final revised budgeted change in fund balance was $1,469,981 lower than
the original budgeted change and the significant items that comprise this difference can be briefly
summarized as follows:
• $242,377 - Encumbrances rolled over from prior fiscal year.
• $141,407- Appropriation for Gain-sharing allocations to City of College Station
employees.
• $194,582 -Appropriation for CSTV-19 Improvements.
• $ 72,856 -Appropriation for General Fund transfer to Print Mail to close fund.
• $200,000 -Appropriation for General Fund’s share of Economic Development property.
• $ 45,532 -Appropriation for additional personnel in Economic Development and Capital
Projects Departments.
In the General Fund the actual change in fund balance was $3,264,005 higher than the final revised
budgeted change and the significant items that comprise this difference can be briefly summarized
as follows:
• $1,262,186 – Additional tax revenue generated primarily from higher sales tax and ad
valorem revenues.
• $1,531,149 – Lower expenditures related to economic development incentive outlays that
were budgeted in fiscal year 2008.
• $400,954 – Due in part to lower expenditures in the Public Works that were budgeted for
and did not occur in fiscal year 2008.
• $131,946 – Due in part to lower personnel expenditures than budgeted in the Human
Resources Division related to unfilled staff positions.
• $417,315 – Lower expenditures in the Planning and Development Services Department
due to staff vacancies and for expenditures related to the professional services that did
not occur.
• $156,991 – Lower expenditures in the Parks and Recreation Department that were
budgeted for and did not occur in fiscal year 2008.
• ($367,209) – Higher expenditures in the Fire Department due in part to sending mutual
aid assistance to communities affected by Hurricane Ike.
Strategic planning is a driving force in the preparation of the City's budget. The City Council has
identified the following five areas of strategic priority, under which are listed some of the key items in
the fiscal year 2008 budget:
City of College Station, Texas 15
Management's Discussion and Analysis
For the Fiscal Year Ended September 30, 2008
(Unaudited)
Core Services
Core services include police, fire and emergency management services; traffic and drainage
services; the City's administrative services; electric, water, sewer and sanitation services; and
capital projects for each of these areas. Key items included in the 2008 fiscal year budget included:
• Citywide Safety and Security
Additional resources for the addition of two Police Communications Officers, seven
Firefighter/Paramedics and the City of College Station portion of the Community Emergency
Operations Center;
• Effective Communications
Additional resources for an additional Broadcast Media Specialist, equipment upgrades and
website enhancements to improve communications;
• Growing Sustainable Revenue Sources Balanced with Needs
Additional resources to acquire a Fiscal Impact Model to assist in determining the fiscal impact
of development activities in the City;
• Exceptional Multi Modal Mobility
Additional resources in the Streets Projects Fund to address transportation needs as well as
additional resources in the Public Works operations budget for the maintenance of the traffic
signal system as well as resources for re-timing portions of the traffic signal system;
• Sustainable Quality City Workforce
Additional resources for a citywide job classification study as well as the City’s approved pay
plan which provides funds for the performance part of the pay plan and targeted pay
adjustments for some public safety employees;
• Exceptional Infrastructure and Core Services
Additional resources to ensure the City’s infrastructure is well maintained, including $45 million
in new appropriations for capital projects in fiscal year 2008. There were also resources from
previous years capital budget appropriations that were projected to be spent in fiscal year 2008.
The utility capital budget appropriation for the 2008 fiscal year were over $29 million, and over
$42 million was projected to be spent on all utility projects. The budget also included an
additional $350,000 for street rehabilitation projects. Additional resources established the
Capital Projects Department to improve the capital project implementation system;
• Diverse Growing Economy
Additional resources for Economic Development activities, including meeting commitments
made in prior years;
• Destination Place to Live and Work
Additional resources for both the operations and capital funds for the Parks and Recreation
System in College Station, including resources for the newly completed phase of Veteran’s
Park and Athletic Complex and resources for the construction and operation of the new
Memorial Cemetery, a project the entire community will be proud to have.
City of College Station, Texas 16
Management's Discussion and Analysis
For the Fiscal Year Ended September 30, 2008
(Unaudited)
CAPITAL ASSETS
The City of College Station's investment in capital assets for its governmental and business-type
activities as of September 30, 2008 amounted to $459,146,261 (net of accumulated depreciation).
This investment in capital assets includes land, utility systems, buildings and building
improvements, improvements other than buildings, machinery and equipment, infrastructure, and
construction in progress.
Capital Assets at Year End
Net of Accumulated Depreciation
Governmental Business-Type
Activities Activities Total
Land 29,957,616$ 690,707$ 30,648,323$
Utility Systems - 185,922,392 185,922,392
Buildings and Building Improvements 18,369,258 4,748,318 23,117,576
Improvements Other than Buildings 14,450,204 - 14,450,204
Machinery and Equipment 11,599,248 115,231 11,714,479
Infrastructure 96,710,635 - 96,710,635
Construction in Progress 28,745,230 67,837,422 96,582,652
199,832,191$ 259,314,070$ 459,146,261$
Major capital projects completed by the City during the 2008 fiscal year include the following:
• West Park ($105,417),
• Dartmouth Extension Phase II ($3.6 million),
• Traffic Signal at Rock Prairie and Rio Grande ($87,257),
• Traffic Signal at Welsh and Holleman ($87,905),
• Pedestrian Improvements on 2818 ($714,774),
• Pedestrian Improvements on University Drive ($217,957),
• Bike Loop ($1,019,594),
• Veterans’ Park Phase II ($657,921),
• Oaks Park Basketball Pavilion ($287,540),
• New Forestry Shop ($826,811),
• Southwood Park Little League Lights ($345,747),
• John Crompton Park Phase II ($168,650),
• West Park (Southside) ($1,237,564),
• Gabbard Park Improvements ($140,000),
• Bee Creek to Southwest Parkway Drainage ($3,040,882),
• West Park Drainage Improvements ($601,475),
• Fire Station #3 Relocation ($2,303,101),
• Court Security Upgrade ($134,308),
• Automated Customer Service (187,864),
• Automated Citations ($325,527).
Of significance is $8,404,626 in developer capital contributions during fiscal year 2008. These
contributions accounted for approximately 2 percent of the $45.915 million in capital assets.
City of College Station, Texas 17
Management's Discussion and Analysis
For the Fiscal Year Ended September 30, 2008
(Unaudited)
Additional information on the City's capital assets can be found in Note IV-C to the financial
statements on pages 49-50.
DEBT ADMINISTRATION
At the end of the 2008 fiscal year, the City of College Station had total debt outstanding of
$224,040,000. Of this amount, $124,480,000 (56 percent) comprised debt backed by the full faith
and credit of the City. Certain Certificate of Obligations fund business-type activities in the Electric,
Water and Wastewater Funds. In fiscal year 2008, a prior period adjustment was made to reflect
$8,240,000 in business-type activity 2004 Certificates of Obligation outstanding at October 1, 2007.
The remaining debt is revenue bonds secured by specified revenue sources.
Year-End Outstanding Debt Payable
Governmental Business-Type
Activities Activities Total
General Obligation Bonds 60,695,000$ -$ 60,695,000$
Certificates of Obligation 39,965,000 23,820,000 63,785,000
Revenue Bonds - 99,560,000 99,560,000
100,660,000$ 123,380,000$ 224,040,000$
The City's total debt increased by $21,365,000 (10.5 percent) during the current fiscal year. The
change in total debt was a result of the following:
• Issuance of $9,455,000 in general obligation improvement bonds and $26,440,000 in
certificates of obligation, which funded governmental and business-type activities; and
• Retirement of $4,480,000 in general obligation bonds, $4,395,000 in certificates of obligation,
and the retirement of $5,655,000 in utility revenue bonds.
The City's General Obligation and Certificates of Obligation have an underlying rating of AA by
Standard & Poors ("S&P") and Aa3 by Moody's Investors Service ("Moody's"). The underlying
ratings for the City's revenue bonds are A+ by S&P and A1 by Moody's.
Additional information on the City's long-term debt can be found in Note IV-G to the financial
statements on pages 52-56 of this report.
OTHER POST-EMPLOYMENT BENEFITS (“OPEB”)
In June 2004, GASB issued Statement No. 45, Accounting and Financial Reporting by Employers
for Postemployment Benefits Other Than Pensions, which provides guidance on all aspects of
OPEB reporting by employers. The requirements of this statement are effective for fiscal periods
beginning after December 15, 2007, for governments that were phase 2 for the implementation
for SGAS 34. The City, a phase 2 government, is implementing GASB 45 for the fiscal year
ending September 30, 2009. The City hired an outside consultant who conducted an actuarial
valuation/liability assessment and estimated the annual costs of OPEB benefits under GASB 45.
The initial study for the fiscal 2006 was expanded with different scenarios for fiscal 2009, using
Projected Unit Credit – 30 year (PUC-30) as its cost method.
City of College Station, Texas 18
Management's Discussion and Analysis
For the Fiscal Year Ended September 30, 2008
(Unaudited)
As noted in Note V.D., the City provides postretirement medical, dental, vision, drug and life
insurance benefits for retired employees. Medical (including prescription drug and vision) and
dental benefits are self-insured by the City and are currently operated on a pay-as-you-go basis.
Life insurance benefits are fully insured.
The City’s estimated annual OPEB cost for the fiscal year ending September 30, 2009 range from
$9,890 if retirees pay the non-blended retiree rate (the life insurance obligation still exists) to
$1,395,242 per year if retirees pay the group (blended) rate to $2,241,140 per year if retirees pay
the current subsidized rate. City staff plans to 1) evaluate, with assistance of the actuary and our
benefits consultant, the impact of changes to the current plan structure, 2) evaluate, with the
assistance of the City’s financial advisor, possible funding options, and 3) prepare and present a
comprehensive overview with recommendations and a funding strategy to the City Council.
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 70 percent for the period of 1990 through 2008,
• An approximate $491 million increase to the ad valorem tax base during the fiscal year,
• A local economy that has maintained an annual unemployment rate of less than 5 percent since
1990, and
• Sales and mixed drink beverage tax revenue that grew by 10 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.
The Fiscal Year 2009 budget was prepared with the key goal of focusing the resources of the
organization to improve the quality of life in College Station at a reasonable cost. 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 2009
fiscal year is $0.4394 per $100 valuation ($0.193352 for operations and maintenance and
$0.246048 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 2009 budget includes a 9
percent increase in the Electric Fund. This rate increase is needed to meet the operating, capital
and debt service coverage requirements in the fund and to ensure continued high quality service is
provided as the community continues to grow. The 2009 budget does not include a rate increase in
the Wastewater Fund and Sanitation Fund. The Water Fund changed its rate structure to a
conservation rate structure for fiscal year 2009. The Drainage Fund increased monthly residential
rates from $3.50 to $5.00.
City of College Station, Texas 19
Management's Discussion and Analysis
For the Fiscal Year Ended September 30, 2008
(Unaudited)
The fiscal year 2009 budget for capital improvements totals $47,939,073. The City anticipates
significant expenditures for infrastructure projects throughout the city. These projects include
rehabilitation of utilities, drainage ways, and streets. Some of the more significant projects are as
follows (amounts presented reflect appropriations over the life of the project):
• Discovery Drive Extension ($2 million),
• Street Rehabilitation in the Southside Area ($2.5 million),
• Street Rehabilitation in the Northgate Area ($2.3 million),
• Rock Prairie Road Widening Design and Land ($2.9 million),
• Barron Road Improvements ($3.0 million),
• William D. Fitch Widening Phase II ($4.5 million),
• Eagle Avenue Extension ($825 thousand),
• Longmire Pedestrian Improvements ($981 thousand),
• Adamson Pool Bathhouse ($1.3 million),
• Municipal Facility Improvements ($2.0 million),
• Radio System Replacement ($4.9 million),
• Well #7 Collection Line ($3.7 million),
• Parallel Wellfield Collection Line Phase I ($4.3 million),
• Land Acquisition – Well Sites ($6.6 million),
• Raymond Stotzer Water Line Extension ($1.5 million),
• Raymond Stotzer Wastewater Extension (2.0 million),
• Lick Creek – replace trunk line ($2.8 million),
• Southside Water Rehabilitation ($4.9 million),
• Southside Wastewater Rehabilitation ($4.3 million),
• Well 8 ($4.2 million),
• Well 8 Collection Line ($3.6 million),
• Bee Creek Drainage Phase 4 and 5 ($1.4 million).
The City plans to issue $1,095,000 in general obligation bonds from the 2003 bond authorization for
the following: $540,000 for street improvements, $100,000 for sidewalk improvements and
$455,000 for traffic signals and safety system improvement projects. The City also plans to issue
$3,040,000 in certificates of obligations for the following: $2,490,000 for radio system replacement
and $550,000 for technology projects. The City also plans to issue $24,255,000 in utility revenue
bonds for the following: $9,725,000 for electric capital projects, $10,750,000 for water capital
projects, and $3,750,000 for wastewater capital projects.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the City of College Station's
financial position for all who have an interest in the City's finances. Questions concerning any of
the information provided in this report or requests for additional financial information should be
addressed to:
City of College Station
Fiscal Services Department
ATTN: Chief Financial Officer
P.O. Box 9960
College Station, Texas 77842-9960
or visit our website at http://www.cstx.gov.
City of College Station, Texas 20
21
22
CITY OF COLLEGE STATION
FINANCIAL
STATEMENTS
CITY OF COLLEGE STATION
Statement of Net Assets
September 30, 2008
Governmental
Activities
Business-type
Activities Total
ASSETS
Cash and cash equialents 59,107,971$ 20,119,962$ 79,227,933$
Investments 28,213,600 9,603,722 37,817,322
Receivables (net of allowance for uncollectibles)4,596,843 14,771,032 19,367,875
Due from BVSWMA 149,379 -149,379
Internal balance (2,772,805)2,772,805 -
Inventories 162,427 1,873,353 2,035,780
Prepaids 343,525 -343,525
Restricted assets:
Temporarily restricted:
Cash and cash equivalents 395,880 6,655,910 7,051,790
Investments 188,963 3,177,019 3,365,982
Accrued Interest Receivable -119,031 119,031
Permanently restricted:
Cash and cash equivalents 1,182,547 -1,182,547
Investments 564,457 -564,457
Receivables, net 31,559 -31,559
Inventory 636 -636
Equity in Joint Venture -11,496,186 11,496,186
Deferred Issuance Costs, net 284,826 859,979 1,144,805
Capital assets (net of accumulated depreciation):
Land and Construction in Progress 58,702,846 68,528,128 127,230,974
Other capital assets
net of accumulated depreciation 141,129,345 190,785,942 331,915,287
Total assets 292,281,999 330,763,069 623,045,068
LIABILITIES
Accounts payable and other current liabilities 3,100,396 12,695,456 15,795,852
Retainage Payable 611,988 496,791 1,108,779
Refundable Deposits 37,848 -37,848
Claims Payable 1,405,955 -1,405,955
Accrued liabilities 2,458,327 739,538 3,197,865
Customer Construction Advances 175,019 81,313 256,332
Unearned Revenues -113,186 113,186
Liabilities Payable from Restricted Assets:
Accrued interest payable 562,640 658,700 1,221,340
Accrued Liabilities -16,619 16,619
Refundable deposits -1,665,611 1,665,611
Noncurrent liabilities:
Due within one year:
Compensated Absences 190,000 23,743 213,743
Bonds and Certificates of Obligation Payable 8,225,000 6,735,000 14,960,000
Due in more than one year:
Bonds and Certificates of Obligation Payable 92,435,000 116,645,000 209,080,000
Deferred Charge - Refunding (363,270)-(363,270)
Unamortized Premium/Discount on Bonds 274,009 (174,605)99,404
Compensated Absences 2,172,575 451,138 2,623,713
Total liabilities 111,285,487 140,147,490 251,432,977
NET ASSETS
Invested in capital assets, net of related debt 114,935,845 145,066,758 260,002,603
Restricted for:
Debt service 3,255,054 1,590,977 4,846,031
Perpetual care:
Expendable 1,756,167 -1,756,167
Other purposes 1,345,792 -1,345,792
Unrestricted 59,703,654 43,957,844 103,661,498
Total net assets 180,996,512$ 190,615,579$ 371,612,091$
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, 2008
Program Revenues
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions
Governmental activities:
General Government $ 8,551,304 $ 1,331,581 $ 1,170,197 $ -
Fiscal Services 2,977,362 684,666 - -
Police 13,395,874 4,307,550 226,147 -
Fire 11,359,260 820,690 317,069 -
Planning and Development Services 1,910,359 1,357,037 - -
Public Works 9,467,081 1,255,525 1,545 3,055,501
Capital Projects 719,391 -
Parks and Recreation 10,385,095 1,911,789 20,212 -
Information Technology 2,749,327 - - -
Interest on long-term debt 3,860,801 - - -
Unallocated Depreciation 667,890 - - -
Total governmental activities 66,043,744 11,668,838 1,735,170 3,055,501
Business-type activities:
Electric 70,485,982 76,787,412 - 632,029
Water 8,706,415 12,025,086 - 2,090,305
Sewer 9,159,176 11,184,565 - 2,626,791
Sanitation 6,244,639 9,628,798 - -
Northgate Parking 668,237 673,818 - -
Total business-type activities 95,264,449 110,299,679 - 5,349,125
Total primary government $ 161,308,193 $ 121,968,517 $ 1,735,170 $ 8,404,626
General Revenue:
Property taxes
Sales and Mixed Beverage taxes
Franchise taxes
Hotel taxes
Unrestricted investment earnings
Transfers (Note IV. D.)
Total general revenues and transfers
Change in net assets
Net assets - beginning
Prior Period Adjustment
Net assets - ending
The notes to the financial statements are an integral part of this statement.
24
Net Revenue (Expense) and
Changes in Net Assets
Governmental Business-type
Activities Activities Total
$ (6,049,526) $ - $ (6,049,526)
(2,292,696) - (2,292,696)
(8,862,177) - (8,862,177)
(10,221,501) - (10,221,501)
(553,322) - (553,322)
(5,154,510) - (5,154,510)
(719,391) - (719,391)
(8,453,094) - (8,453,094)
(2,749,327) - (2,749,327)
(3,860,801) - (3,860,801)
(667,890) - (667,890)
(49,584,235) - (49,584,235)
- 6,933,459 6,933,459
- 5,408,976 5,408,976
- 4,652,180 4,652,180
- 3,384,159 3,384,159
- 5,581 5,581
- 20,384,355 20,384,355
(49,584,235) 20,384,355 (29,199,880)
20,670,112 - 20,670,112
20,241,973 - 20,241,973
2,090,779 - 2,090,779
3,585,512 - 3,585,512
3,385,844 1,330,785 4,716,629
7,559,165 (10,433,954) (2,874,789)
57,533,385 (9,103,169) 48,430,216
7,949,150 11,281,186 19,230,336
164,807,362 187,574,393 352,381,755
8,240,000 (8,240,000) -
$ 180,996,512 $ 190,615,579 $ 371,612,091
25
CITY OF COLLEGE STATION, TEXAS
Balance Sheet
Governmental Funds
September 30, 2008
General Debt Service
Streets
Projects
Other
Governmental
Funds
Total
Governmental
Funds
Assets
Equity in Cash and Cash Equivalents 9,096,954$ 2,573,421$ 16,992,373$ 22,513,778$ 51,176,526$
Equity in Investments 4,342,186 1,228,353 8,110,852 10,746,347 24,427,738
Receivables
Accrued Interest 57,390 15,920 105,864 138,136 317,310
Grants 131,073 --428,270 559,343
Letter of Credit 25,000 ---25,000
Accounts 1,556,347 -380,187 641,288 2,577,822
Taxes 2,109,857 280,204 --2,390,061
Other 20,547 ---20,547
Less Allowance for Uncollectible Accounts (895,492)-(373,234)(86,222)(1,354,948)
Due from Other Funds 149,379 ---149,379
Inventories 62,919 --636 63,555
Prepaid Costs 27,792 -315,733 -343,525
Restricted Assets
Equity in Cash and Cash Equivalents 395,880 ---395,880
Equity in investments 188,963 ---188,963
Total Assets 17,268,795$ 4,097,898$ 25,531,775$ 34,382,233$ 81,280,701$
Liabilities and Fund Balances
Accounts Payable 939,552$ -$ 856,592$ 1,075,614$ 2,871,758$
Retainage Payable 16,483 -241,248 354,257 611,988
Interfund Payables 600,000 --200,000 800,000
Refundable Deposits 37,848 ---37,848
Accrued Liabilities 2,197,298 --215,509 2,412,807
Customer Construction Advances 129,757 -45,262 -175,019
Other Deferred Revenues 1,362,468 280,204 278 397,395 2,040,345
Total Liabilities 5,283,406 280,204 1,143,380 2,242,775 8,949,765
Fund Balances
Reserved 2,305,476 3,817,694 24,388,395 20,613,449 51,125,014
Unreserved, Undesignated
General Fund 9,679,913 ---9,679,913
Special Revenue Funds ---11,526,009 11,526,009
Total Fund Balances 11,985,389 3,817,694 24,388,395 32,139,458 72,330,936
Total Liabilities and Fund Balances 17,268,795$ 4,097,898$ 25,531,775$ 34,382,233$ 81,280,701$
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
September 30, 2008
Amounts reported for governmental activities in the statement of net assets
are different because:
Total Fund Balance per balance sheet: 72,330,936$
Capital assets used in governmental activities are not financial
resources and, therefore, are not reported in the funds. 190,789,934
Other long-term assets are not available to pay for current-period
expenditures and, therefore, are deferred in the funds. 2,048,398
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. 18,987,445
Long-term liabilities, including bonds payable, are not due and payable in
the current period and therefore are not reported in the funds. (103,534,288)
The issuance of debt is treated as an other financing source, and
therefore is not capitalized and amortized over the life of the debt.
The premium on issued debt is treated as an other financing source
and thus is not amortized annually. Refunding debt is
treated as an other financing use and is not treated as a deferred
charge and amortized over the life of the debt. 374,087
Net Assets of governmental activities: 180,996,512$
The notes to the financial statements are an integral part of this statement.
27
General Debt Service
Streets
Projects
Other
Governmental
Funds
Total
Governmental
Funds
Revenues
Taxes 30,984,741$ 11,012,440$ -$ 4,591,195$ 46,588,376$
Licenses and Permits 1,154,902 - - - 1,154,902
Intergovernmental 536,215 - 1,545 1,170,197 1,707,957
Charges for Services 3,149,076 - - 641,071 3,790,147
Fines, Forfeits, and Penalties 3,412,827 - - 385,486 3,798,313
Special Assessment 914 - - 1,254,611 1,255,525
Investment Income 593,514 350,744 793,773 1,148,605 2,886,636
Rents and Royalties 279,004 - - - 279,004
Contributions 25,046 - - 2,167 27,213
Reimbursed Expenditures 426 - 38,932 6,680 46,038
Other 159,477 - 915 886,039 1,046,431
Total Revenues 40,296,142 11,363,184 835,165 10,086,051 62,580,542
Expenditures
Current
General Government 6,187,469 - 39,172 1,093,021 7,319,662
Fiscal Services 3,411,717 - 6,709 155,260 3,573,686
Police 13,219,117 - - - 13,219,117
Fire 11,251,400 - - - 11,251,400
Planning and Development Services 2,281,747 - - - 2,281,747
Public Works 7,157,121 - - 25,322 7,182,443
Capital Improvement Projects 715,707 - - - 715,707
Parks and Recreation 8,985,860 - - 85,338 9,071,198
Information Services 3,366,764 - - - 3,366,764
Library 993,102 - - - 993,102
Reimbursed Administration (6,497,466) - 805,667 1,919,437 (3,772,362)
Contributions 657,592 - - 1,494,000 2,151,592
Other 173,637 - - 30,701 204,338
Capital Outlay - - 7,881,279 11,657,043 19,538,322
Debt Service
Principal Retirement - 8,530,000 - - 8,530,000
Interest Payments - 3,892,490 - - 3,892,490
Fiscal Charges - 11,221 15,588 43,987 70,796
Intergovernmental - - 881,604 - 881,604
Total Expenditures 51,903,767 12,433,711 9,630,019 16,504,109 90,471,606
Deficiency of Revenues Under Expenditures (11,607,625) (1,070,527) (8,794,854) (6,418,058) (27,891,064)
Other Financing Sources (Uses)
Insurance of Debt - - 11,232,160 8,737,840 19,970,000
Sales of Capital Assets 10,981 - - - 10,981
Transfers In 11,591,668 1,422,163 143,563 671,020 13,828,414
Transfer Out (942,224) - - (2,098,874) (3,041,098)
Total Other Financing Sources 10,660,425 1,422,163 11,375,723 7,309,986 30,768,297
Net Change in Fund Balances (947,200) 351,636 2,580,869 891,928 2,877,233
Fund Balances, October 1 12,932,589 3,466,058 21,807,526 31,247,530 69,453,703
Fund Balances, September 30 11,985,389$ 3,817,694$ 24,388,395$ 32,139,458$ 72,330,936$
The notes to the financial statements are an integral part of this statement.
CITY OF COLLEGE STATION, TEXAS
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Fiscal Year Ended September 30, 2008
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, 2008
Amounts reported for governmental activities in the statement of activities
are different because:
Net change in fund balance - total governmental funds: 2,877,233$
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. 13,498,040
The effect of various miscellaneous transactions involving capital
assets is to increase net assets. 3,044,520
Revenues in the statement of activities that do not provide current
financial resources are not reported as revenues in the funds. 382,821
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. (11,440,000)
Some expenses reported in the statement of activities do not require
the use of current financial resources and, therefore, are not
reported as expenditures in governmental funds. (187,476)
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. (225,988)
Change in Net Assets of governmental activities: 7,949,150$
The notes to the financial statements are an integral part of this statement.
29
Governmental
Activities
Electric Water Wastewater
Other Enterprise
Funds
Total Enterprise
Funds
Internal Service
Funds
Current Assets
Equity in Cash and Cash Equivalents 9,329,040$ 4,846,191$ 4,868,744$ 963,891$ 20,007,866$ 9,226,088$
Equity in Investments 4,452,966 2,313,199 2,323,964 460,087 9,550,216 4,403,825
Restricted Assets
Equity in Cash and Cash Equivalents 298,290 442,479 433,536 - 1,174,305 -
Equity in Investments 142,380 211,205 206,936 - 560,521 -
Accrued Interest Receivable - 119,031 - - 119,031 -
Receivables
Accrued Interest 64,914 32,257 32,860 6,206 136,237 56,229
Accounts 10,997,471 1,642,946 2,277,836 1,013,093 15,931,346 68,048
Other 1,097,873 2,000 - - 1,099,873 15,003
Less: Allowance for Uncollectible Accounts (2,066,777) (93,795) (181,188) (115,531) (2,457,291) (24,811)
Due from Other Funds 40,000 40,000 40,000 - 120,000 -
Intergovernmental Receivable 13,820 - - 17,792 31,612 8,053
Inventories 1,442,959 357,808 32,774 39,812 1,873,353 99,508
Prepaid items ------
Total Current Assets 25,812,936 9,913,321 10,035,462 2,385,350 48,147,069 13,851,943
Noncurrent Assets
Restricted Assets
Equity in Cash and Cash Equivalents 1,165,991 1,853,918 2,461,696 - 5,481,605 -
Equity in Investments 556,555 884,918 1,175,025 - 2,616,498 -
Total Restricted Assets 1,722,546 2,738,836 3,636,721 - 8,098,103 -
Advance to Other Funds 360,000 160,000 160,000 - 680,000 -
Equity in Joint Venture - - - 11,496,186 11,496,186 -
Deferred Charges
Bond Issuance Charges 377,199 420,426 420,373 - 1,217,998 -
Accumulated Amortization (99,920) (119,510) (138,589) - (358,019) -
Total Deferred Charges 277,279 300,916 281,784 - 859,979 -
Property and Equipment
Utility Plant 125,566,305 85,317,354 82,210,378 - 293,094,037 -
Buildings - - - 5,743,755 5,743,755 786,525
Machinery and Equipment - - - 588,233 588,233 27,390,602
Accumulated Depreciation (53,493,322) (28,044,157) (26,142,138) (1,468,438) (109,148,055) (19,519,636)
Construction in Progress 7,445,112 41,810,310 18,577,669 4,330 67,837,421 892,738
Land - - - 690,707 690,707 -
Total Property and Equipment 79,518,095 99,083,507 74,645,909 5,558,587 258,806,098 9,550,229
Total Noncurrent Assets 81,877,920 102,283,259 78,724,414 17,054,773 279,940,366 9,550,229
Total Assets 107,690,856 112,196,580 88,759,876 19,440,123 328,087,435 23,402,172
Liabilities
Current Liabilities
Accounts Payable 11,782,604 650,228 169,717 71,172 12,673,721 250,373
Retainage Payable 76,493 415,761 4,537 - 496,791 -
Interfund Payable ------
Accrued Liabilities 398,527 62,904 85,517 141,158 688,106 96,952
Customer Construction Advances 24,382 44,801 12,130 - 81,313 -
Other Deferred Revenues 13,820 - - 99,366 113,186 8,053
Claims Payable -----1,405,955
Payable from Restricted Assets
Accounts Payable 836 - - - 836 -
Accrued Interest Payable 139,356 296,382 222,962 - 658,700 -
Accrued Liablities 13,122 - 2,661 - 15,783 -
Refundable Deposits 1,386,605 269,836 - 9,170 1,665,611 -
Certificates of Obligation 424,862 235,000 240,138 - 900,000 -
Revenue Bonds 1,392,764 1,991,351 2,450,885 - 5,835,000 -
Total Current Liablities 15,653,371 3,966,263 3,188,547 320,866 23,129,047 1,761,333
Noncurrent Liabilities
Certificates of Obligation 10,603,578 6,720,000 5,596,422 - 22,920,000 -
Revenue Bonds 24,556,103 39,432,111 29,736,786 - 93,725,000 -
Unamortized Discount on Certificates
and Bonds (64,206) (26,691) (83,708) - (174,605) -
Accrued Vacation 189,286 82,264 83,685 60,227 415,462 110,346
Total Noncurrent Liabilites 35,284,761 46,207,684 35,333,185 60,227 116,885,857 110,346
Total Liabilities 50,938,132 50,173,947 38,521,732 381,093 140,014,904 1,871,679
Net Assets
Invested in Capital Assets, net of related debt 44,604,819 53,771,488 40,623,891 5,558,587 144,558,785 9,550,229
Restricted for:
Debt service 440,670 509,835 640,472 - 1,590,977 -
Unrestricted 11,707,235 7,741,310 8,973,781 13,500,443 41,922,769 11,980,264
Total Net Assets 56,752,724$ 62,022,633$ 50,238,144$ 19,059,030$ 188,072,531$ 21,530,493$
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds: 2,543,048
Net assets business-type activites:190,615,579$
The notes to the financial statements are an integral part of this statement.
Business-type Activities - Enterprise Funds
CITY OF COLLEGE STATION, TEXAS
Statement of Net Assets
Proprietary Funds
September 30, 2008
30
Governmental
Activities
Electric Water Wastewater
Other Enterprise
Funds
Total Enterprise
Funds
Internal Service
Funds
Operating Revenues
Charges for Services 74,975,691$ 11,314,839$ 10,979,881$ 7,367,822$ 104,638,233$ 8,179,835$
Premiums - - - - - 7,809,912
Other 1,637,643 497,694 204,684 86,482 2,426,503 257,727
Total Operating Revenues 76,613,334 11,812,533 11,184,565 7,454,304 107,064,736 16,247,474
Operating Expenses
Electric Operations 63,743,046 - - - 63,743,046 -
Salaries and Benefits - 1,281,681 2,120,886 2,023,931 5,426,498 2,532,650
Supplies - 79,924 393,977 582,360 1,056,261 915,131
Maintenance - 39,938 220,229 551,796 811,963 205,131
Purchased Professional Services - 63,851 197,182 508,562 769,595 77,094
Purchased Property Services - 1,246,413 776,983 1,637,992 3,661,388 71,465
Other Purchased Services - 167,686 353,069 694,580 1,215,335 638,142
Claims - - - - - 4,999,828
Administration Fees - - - - - 599,747
Contributions - - - - - 34,534
Premiums - - - - - 977,516
Reimbursed Administrative - 1,397,292 831,287 655,424 2,884,003 1,038,734
Depreciation 5,120,687 2,280,354 2,496,508 166,495 10,064,044 2,265,908
Other - 196,438 85,901 (8,845) 273,494 15,059
Total Operating Expenses 68,863,733 6,753,577 7,476,022 6,812,295 89,905,627 14,370,939
Operating Income 7,749,601 5,058,956 3,708,543 642,009 17,159,109 1,876,535
Nonoperating Revenues (Expenses)
Investment Income 479,306 366,059 417,764 59,830 1,322,959 507,034
Reimbursed Expenses 174,078 212,553 - 135 386,766 20,748
Earnings in Joint Venture - - - 2,848,177 2,848,177 -
Interest Expense 1,363,567 1,981,441 1,726,340 - 5,071,348 -
Other, Net (153,019) 84,029 80,627 (35,600) (23,963) 342,160
Total Nonoperating Revenues (Expenses) (863,202) (1,318,800) (1,227,949) 2,872,542 (537,409) 869,942
Income Before Capital Contributions and Transfers 6,886,399 3,740,156 2,480,594 3,514,551 16,621,700 2,746,477
Capital Contributions and Transfers
Capital Contributions 632,029 2,090,305 2,626,791 - 5,349,125 -
Transfers In 470,156 - - - 470,156 116,878
Transfers Out (7,641,082) (1,363,042) (1,347,193) (515,500) (10,866,817) (3,382,322)
Total Capital Contributions and Transfers (6,538,897) 727,263 1,279,598 (515,500) (5,047,536) (3,265,444)
Change in Net Assets 347,502 4,467,419 3,760,192 2,999,051 11,574,164 (518,967)
Beginning Net Assets 60,864,962 57,555,214 50,258,212 16,059,979 22,049,460
Prior Period Adjustment (4,459,740) - (3,780,260) - -
Ending Net Assets 56,752,724$ 62,022,633$ 50,238,144$ 19,059,030$ 21,530,493$
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds: (292,980)
Change in net assets of business-type activities:11,281,184$
The notes to the financial statements are an integral part of this statement.
Business-type Activities - Enterprise Funds
CITY OF COLLEGE STATION, TEXAS
Statement of Revenues, Expenses and Changes in Net Assets
Proprietary Funds
For the Fiscal Year Ended September 30, 2008
31
Governmental
Activities
Other Total Internal
Enterprise Enterprise Service
Electric Water Wastewater Funds Funds Funds
Cash Flows from Operating Activities:
Cash Received from Customers 76,285,762$ 11,619,422$ 10,370,790$ 7,323,078$ 105,599,052$ 16,238,495$
Cash Payments to Suppliers for Goods and Services (59,456,821) (2,934,548) (3,127,051) (4,641,035) (70,159,456) (9,821,106)
Cash Payments to Employees for Services (3,403,132) (1,291,156) (2,118,133) (2,002,109) (8,814,529) (2,578,680)
Customer Deposits Returned (178,670) (32,866) - (1,880) (213,416) -
Cash Received/Paid for Reimbursed Expenses 206,755 26,561 (2,986) 135 230,465 20,748
Cash Received for Miscellaneous Revenues - 94,012 100,708 3,293 198,013 342,261
Cash Paid to Other Funds - - - - - (81,459)
Cash Paid for Miscellaneous Expenses (153,019) (9,983) (20,081) (41,076) (224,159) (101)
Net Cash Provided by Operating Activities 13,300,875 7,471,442 5,203,247 640,406 26,615,970 4,120,158
Cash Flows from Noncapital Financing Activities:
Cash Paid to Other Funds
(Due From / Advance to Other Funds) (200,000) (200,000) (200,000) - (600,000) -
Transfers In from Other Funds 470,156 - - - 470,156 131,263
Transfers Out to Other Funds (7,641,082) (1,363,042) (1,347,193) (475,500) (10,826,817) (1,397,964)
Net Cash Used by Noncapital Financing Activities (7,370,926) (1,563,042) (1,547,193) (475,500) (10,956,661) (1,266,701)
Cash Flows from Capital and Related Financing Activities:
Acquisition and Construction of Capital Assets (9,741,674) (14,366,138) (3,588,850) (79,224) (27,775,886) (1,963,943)
Proceeds from Sale of Assets - - - - - 182,823
Principal Paid on Revenue Bonds (1,437,350) (1,929,684) (2,287,966) - (5,655,000) -
Interest Paid on Revenue Bonds (1,206,671) (1,992,422) (1,554,865) - (4,753,958) -
Principal Paid on Certificates of Obligation (186,300) (158,700) - - (345,000) -
Interest Paid on Certificates of Obligation (187,320) (157,928) - - (345,248) -
Proceeds from Certificates of Obligations 6,700,000 6,900,000 2,200,000 - 15,800,000 -
Net Cash Used by Capital
and Related Financing Activities (6,059,315) (11,704,872) (5,231,681) (79,224) (23,075,092) (1,781,120)
Cash Flows from Investing Activities:
Purchase of Investments (15,206,247) (11,086,813) (11,219,016) (1,289,711) (38,801,787) (12,819,019)
Proceeds from Sale and Maturities of
Investment Securities 16,332,473 14,219,385 12,683,557 1,380,649 44,616,064 13,349,434
Investment Income 488,346 388,650 431,558 58,623 1,367,177 495,889
Net Cash Provided by Investing Activities 1,614,572 3,521,222 1,896,099 149,561 7,181,454 1,026,304
Net Increase (decrease) in Cash and Cash Equivalents 1,485,206 (2,275,250) 320,472 235,243 (234,329) 2,098,641
Cash and Cash Equivalents, Oct. 1 9,308,115 9,417,838 7,443,504 728,648 26,898,105 7,127,447
Cash and Cash Equivalents, Sept. 30 10,793,321$ 7,142,588$ 7,763,976$ 963,891$ 26,663,776$ 9,226,088$
Business-type Activities - Enterprise Funds
CITY OF COLLEGE STATION, TEXAS
Statement of Cash Flows
Proprietary Funds
For the Fiscal Year Ended September 30, 2008
32
Governmental
Activities
Other Total Internal
Enterprise Enterprise Service
Electric Water Wastewater Funds Funds Funds
Reconciliation of Operating Income to Net Cash
Provided by Operating Activities:
Operating Income 7,749,601$ 5,058,956$ 3,708,543$ 642,009$ 17,159,109$ 1,876,535$
Adjustment to Reconcile Operating Income to Net
Cash Provided by Operating Activities:
Depreciation, Bad Debt Expense, Inventory Loss 5,120,687 2,280,354 2,496,508 166,495 10,064,044 2,265,908
Provision for Uncollectible Accounts 228,602 15,086 28,252 16,315 288,255 543
Miscellaneous Nonoperating Revenues 206,755 120,573 97,722 3,428 428,478 363,009
Miscellaneous Nonoperating Expenses (153,019) (9,983) (267,081) (41,076) (471,159) (101)
Changes in Assets and Liabilities:
Change in Accounts Receivable (340,570) (193,111) (813,775) (135,987) (1,483,443) (8,979)
Change in Deferred Revenues 12,998 - - 4,761 17,759 -
Change in Inventory (35,105) (44,080) 12,544 (34,738) (101,379) 77,125
Change in Accounts Payable 619,860 285,987 (62,219) 5,641 849,269 (397,011)
Change in Due from Other Funds - - - - - (81,459)
Change in Claims Payable - - - - - 219,928
Change in Accrued Liabilities 53,164 (4,690) 132 3,336 51,942 (166,535)
Change in Refundable Deposits (178,670) (32,866) - (1,880) (213,416) -
Change in Accrued Vacation 16,572 (4,784) 2,621 12,102 26,511 (28,805)
Total Adjustments 5,551,274 2,412,486 1,494,704 (1,603) 9,456,861 2,243,623
Net Cash Provided by Operating Activities 13,300,875$ 7,471,442$ 5,203,247$ 640,406$ 26,615,970$ 4,120,158$
Noncash Operating, Financing, Capital and Investing Activities: During the Fiscal Year the Enterprise Fund added contributed capital in the
amount of $5,349,125. Adjustments at 9/30/08 to investments to record income accrual and fair value changes were as follows:
Enterprise Fund $167,571 and Internal Service Funds 70,939.
The notes to the financial statements are an integral part of this statement.
Business-type Activities - Enterprise Funds
CITY OF COLLEGE STATION, TEXAS
Statement of Cash Flows
Proprietary Funds
For the Fiscal Year Ended September 30, 2008
33
34
CITY OF COLLEGE STATION
NOTES TO THE FINANCIAL
STATEMENTS
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2008
I. Summary of Significant Accounting Policies
A. Financial Reporting Entity
The City of College Station, Texas ("City"), the financial reporting entity presented in these
financial statements, was incorporated in 1938 and is a municipal corporation incorporated
under the provisions of H.B. 901 of the Texas Legislature. The City operates under a Council-
Manager form of government and provides such services as authorized by its charter to
advance the welfare, health, comfort, safety and convenience of the City and its inhabitants.
The City of College Station entered into a joint venture in 1990 with the City of Bryan, Texas
creating the Brazos Valley Solid Waste Management Agency ("BVSWMA"). BVSWMA was
formed to combine landfill operations for the two cities. It is subject to joint control, and each
City reports a 50% interest in BVSWMA. The City's equity interest in BVSWMA is reported in
the Sanitation Fund. (See Note V-C).
The financial statements of the City have been prepared in conformity with generally accepted
accounting principles ("GAAP") as applied to state and local governments. The more significant
of the City's accounting policies are described below.
B. Government-Wide and Fund Financial Statements
The government-wide financial statements (e.g., the statement of net assets and the statement
of activities) report information on all of the 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
City of College Station, Texas
35
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2008
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 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 Wastewater Fund accounts for the activities necessary to provide sewer collection and
treatment services to the residents of the City. These activities include administrative
services, wastewater system operations and maintenance, new construction, financing and
related debt service. Billing and collection services are accounted for as an internal service
fund.
Additionally, the City reports the following fund types:
Internal service funds account for activities related to the operation and maintenance of the
City's radio and telephone systems; administration of health insurance provided to City
employees; the City's risk management activities, including general liability, unemployment,
City of College Station, Texas
36
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2008
and workers' compensation claims and associated administrative expenses on a cost
reimbursement basis; utility billing and collection activities related to the City's electric,
water, and wastewater utilities and residential and commercial garbage collection; activities
related to the management of the City's vehicles and heavy equipment, including
preventative maintenance and vehicle repair; and activities related to the purchase and
replacement of vehicles and large motorized equipment, telephone and radio systems, and
technological infrastructure equipment not budgeted in other funds.
Private sector standards of accounting and financial reporting issued prior to December 1,
1989, generally are followed in both the government-wide and proprietary fund financial
statements to the extent that those standards do not conflict with or contradict guidance of the
Governmental Accounting Standards Board. Governments also have the option of following
subsequent private sector guidance for their business-type activities and enterprise funds,
subject to this same limitation. The City has elected to not follow subsequent private sector
guidance.
In general, the effect of interfund activity has been eliminated from the government-wide
financial statements. Exceptions to this rule are payments-in-lieu of taxes, indirect costs and
franchise fees, and other charges between the City's Electric, Water, and Wastewater Funds
because elimination of these charges would distort the direct costs and program revenues
reported in the Statement of Activities.
Amounts reported as program revenues include (1) charges to customers or applicants who
purchase, use, or directly benefit from goods, services, or privileges provided by a given
function or segment and (2) grants and contributions that are restricted to meeting the
operational or capital requirements of a particular function or segment. Taxes and other items
not properly included among program revenues are reported instead as general revenues.
Proprietary funds distinguish operating revenues and expenses from non-operating items.
Operating revenues and expenses generally result from providing services in connection with
the fund's principal ongoing operations. The principal operating revenues of the City's
enterprise and internal service funds are charges for customer services including electric,
water, wastewater, and sanitation fees, equipment purchase amounts, and risk management
charges. Operating expenses for enterprise funds and internal service funds include the cost of
services, administrative expenses, and depreciation on capital assets. All revenues and
expenses not meeting this definition are reported as non-operating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the City's policy to
use unrestricted resources first, and then restricted resources as they are needed.
D. Assets, Liabilities, and Net Assets or Equity
Cash and Cash Equivalents
Cash and cash equivalents are short term highly liquid investments that are (a) readily
convertible to known amounts of cash and (b) so near their maturity that they present
insignificant risk of changes in value because of changes in interest rates. Therefore, for
purposes of the statement of cash flows, cash and cash equivalents (including restricted
assets) include demand accounts, investment pools, money market mutual funds, and agency
securities notes with original maturities of three months or less when purchased.
All cash, except for petty cash accounts, is deposited with the City's depository bank in interest
bearing accounts or is invested.
City of College Station, Texas
37
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2008
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 2007. This policy is applicable to all City funds and permits
investment in obligations of the U.S. Government or its agencies, repurchase agreements,
commercial paper, certificates of deposit, guaranteed investment contracts, public funds
investment pools, and money market mutual funds. This policy states that the City Manager
shall designate the City’s Investment Officer with whom responsibility and authority for
investment transactions reside.
The investments purchased under the provisions of the Investment Policy are managed to
maintain liquidity for meeting the City's needs for cash and to limit potential market risks in
periods of rising interest rates which depress the market value of securities. As a guideline,
maturity of securities should not exceed five years for cash management purposes, with an
optimum weighted average maturity of less than two years. Investments in securities of a
longer maturity than two years are considered prudent for funds maintained for capital
construction and debt service funds, if necessary to meet projected disbursement schedules.
As a general guideline, the City’s cash management portfolio is designed with the objective of
meeting, over the course of full market cycles, the average return on three-month U.S. Treasury
Bills, or the average rate of federal funds, whichever is higher. These indices are considered
benchmarks for riskless investment transactions and therefore comprise a standard for the
portfolio's rate of return. The investment program seeks to augment rates of return above this
level. In a diversified portfolio, measured losses are inevitable and must be considered within
the context of the overall portfolio. The objective in investment of construction funds is at least
to match inflation increases in construction costs.
Active portfolio management includes the practice of selling securities prior to maturity and
using the proceeds to purchase other securities. Such "swaps" are performed for a variety of
valid reasons: to lengthen maturities as interest rates rise, to secure market profits and shorten
maturities as interest rates fall, and to take advantage of the differences in relative yield
between different types of securities and varying maturities. "Swap" analysis is the
responsibility of the City's Investment Officer and the decision to execute the "swap" rests with
her. To protect the portfolio from imprudent trading, no security may be sold until such time as
the current market value of the security plus interest earned from date of purchase is at least
equal to the purchase price of that security.
State statutes authorize the City to invest in fully-insured time deposits, direct debt securities of
the United States or its agencies, and fully collateralized repurchase agreements. The
repurchase agreements must be purchased pursuant to a master repurchase agreement which
specifies that the transaction be held in a safekeeping account subject to the control and
custody of the City.
Investments in security repurchase agreements may be made only with the City's depository
bank, with state or national banks domiciled in the state of Texas, or with securities dealers
reporting to the Federal Reserve Bank of New York ("Primary Dealers"). All securities are
purchased delivery-vs.-payment and held in the City's name in a safekeeping account at The
Bank of New York.
City of College Station, Texas
38
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2008
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, 2008,
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
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, Municipal Court juvenile case manager 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.
City of College Station, Texas
39
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2008
Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads,
bridges, sidewalks, and similar items), are reported in the applicable governmental or business-
type activities columns in the government-wide financial statements. Capital assets are defined
by the City as assets with an initial, individual cost of more than $5,000 and an estimated useful
life in excess of three years. Such assets are recorded at historical cost or estimated historical
cost if purchased or constructed. Donated capital assets are recorded at estimated fair market
value at the date of donation.
Assets owned by the electric utility are capitalized in accordance with Federal Energy
Regulatory Commission (FERC) guidelines. Furthermore, assets owned by either the water or
wastewater utilities are capitalized in accordance with the National Association of Regulatory
Utility Commissioners (NARUC) guidelines. The costs of normal maintenance and repairs that
do not add to the value of the asset or materially extend the asset's useful life are not
capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed.
In accordance with Financial Accounting Standards Board Statement No. 71, interest is not
capitalized during construction of capital assets of business-type activities because interest is
recovered currently in the City's established rate.
Depreciation of all assets is recorded and calculated using the straight-line method over the
following estimated useful lives:
Electric System 1-50 Years
Water System 2-50 Years
Wastewater System 2-50 Years
Infrastructure 10-50 Years
Buildings and Building Improvements 5-50 Years
Land Improvements 10-45 Years
Machinery and Equipment 5-20 Years
Motor Vehicles 3-12 Years
Furniture, Fixtures and Office Equipment 5-20 Years
Compensated Absences
Employees are credited with vacation at rates of 10 to 20 days per year, depending upon length
of service. Carryover of unused vacation time from one year to the next is allowed for a
maximum of two years. Upon termination, the respective employees are paid for any accrued
vacation not taken (up to the two-year maximum). Accumulated vacation is accrued when
earned in the government-wide and proprietary fund financial statements. No liability has been
recorded in the governmental fund financial statements.
Employees are credited with sick leave at the rate of one day per month. There is no maximum
to the number of sick days that each employee can accumulate. Because the City does not
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
City of College Station, Texas
40
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2008
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.
E. Budgetary Control
The City follows these procedures in establishing the budgetary data:
1. Prior to September 1, the City Manager submits to the City Council a proposed operating
budget for the fiscal year commencing the following October 1. The operating budget
includes proposed expenditures and the means for financing them.
2. All budget requests are compiled by the Office of Budget and Strategic Planning and then
presented with comparative and supporting data to the Mayor and City Council for review.
3. Public hearings are properly advertised and conducted at City Hall for taxpayer comments.
4. Prior to September 27, the budget is legally enacted through passage of an ordinance.
5. The City Council must approve all transfers of budgeted amounts between departments
within any fund and any revision that alters the total expenditures of any fund. An amount
is also budgeted each year for contingencies which may arise. The Council has authorized
the City Manager to make budget transfers for contingencies if the amount does not exceed
$15,000. All other transfers must be approved by City Council. City Council may transfer
amounts among individual budget line items within major expenditure categories during the
year, but no such transfer may increase the overall total budget. Budgeted amounts as
originally adopted were not significantly changed by such transfers during the year.
6. In accordance with the City Charter, the budget may be amended after the following
conditions are met: (a) The City Manager certifies that there are available revenues in
excess of those estimated in the budget. (b) The City Council holds a public hearing on
the supplemental appropriation. (c) The City Council approves the supplemental
appropriation. Management may not amend the budget without seeking the approval of the
City Council.
City of College Station, Texas
41
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2008
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 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 $108,665,576 difference are as follows:
When capital assets (land, buildings, equipment, etc.) that are to be used
in governmental activities are purchased or constructed, the costs of
those assets are reported as expenditures in governmental funds.
However, the statement of net assets includes those capital assets
among the assets of the City as a whole.
Cost of Capital Assets 301,672,468$
Accumulated Depreciation (110,882,534)
Net Capital Assets 190,789,934$
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 (100,660,000)$
Accrued Interest Payable (562,640)
Compensated Absences (2,311,648)
(103,534,288)$
Governmental funds report the issuance of debt as an other financing
source in the governmental fund statement of revenues, expenditures,
and changes in fund balances. In contrast, issuance costs should be
capitalized and amortized over the life of the debt.
Deferred issuance costs 311,453$
Amoritization of issuance costs (26,627)
284,826$
When a governmental entity issues debt at a discount or a premium, the
discount/premium is ignored in recording interest expenditures in a
governmental fund; however, the discount/premium must be amortized
annually to report interest on an accrual basis in the government-wide
financial statements.
Premium on Bonds (342,511)$
Amortization of premium 68,502
(274,009)$
A refunding transaction essentially combines the issuance of new debt
and the repayment of existing debt. The key difference is that the
disparity between the net carrying value of the refunded debt and its
reacquisition price is treated as a deferred charge (this amount is treated
City of College Station, Texas
42
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2008
as a deduction from or an addition to the new debt liability) in the
government-wide statement of net assets and subsequently amortized
over the life of the refunding or refunded debt, whichever is shorter.
Deferred charge - Refunding 454,088$
Accrued Interest Payable (90,818)
363,270$
Total Deferred/Capitalized
Items 374,087$
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, cemetery sales, and
property taxes shown on the governmental fund statements is not
deferred on the statement of net assets.
Deferred Property Tax Revenue 515,657$
Deferred Hotel Tax Revenue 212,235
Deferred Emergency Medical Services Revenue 439,261
Deferred Fines/Penalties 584,843
Deferred Cemetery Sales Revenue 202,074
Deferred Intergovernmental Revenue 69,050
Other Deferred Revenue 25,278
2,048,398$
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.
18,987,445$
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 $13,498,040 difference are as follows:
City of College Station, Texas
43
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2008
Capital Outlay 21,828,688$
Depreciation Expense (8,330,648)
Net Adjustment to increase net changes in fund balances-
total governmental funds to arrive at changes in net assets
of governmental activities 13,498,040$
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 $3,044,520 difference are as follows:
Donated Capital Assets 3,055,501$
Proceeds from Sale of Fixed Assets (10,981)
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.3,044,520$
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 ($11,440,000) difference are as follows:
Debt issued or incurred:
Issuance of General Obligation Bonds
and Certificates of Obligation (19,970,000)$
Principal Retirement 8,530,000
Net Adjustment to decrease net changes in fund balances-
total governmental funds to arrive at changes in net assets of
governmental activities (11,440,000)$
Another element of that reconciliation states that "Some expenses reported in the statement of
activities do not require the use of current financial resources and, therefore, are not reported
as expenditures in governmental funds." The details of this ($187,476) difference are as
follows:
City of College Station, Texas
Compensated Absences (216,485)$
Accrued Interest & amortization (31,689)
Issuance Costs Deferred 60,698
Net Adjustment to increase net changes in fund balances-
total governmental funds to arrive at changes in net assets of
governmental activities (187,476)$
44
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2008
III. Stewardship, Compliance, and Accountability
A. Budgetary Information
The Council approved three budget amendments during fiscal year 2008. These budget
amendments included the following appropriations:
WD Fitch Widening Phase II 4,021,500$
Purchased Power 3,044,000
Economic Development Land Purchase 2,132,208
Memorial Cemetery 1,980,000
Eagle Drive Extension 800,000
Discovery Drive Extension 544,021
Wellborn Road Landscaping 478,913
Parks/Parkland Capital Projects 436,219
Bike Loop 400,000
Electric Training Room Facility Project 250,000
Fire Department Grants 245,400
University Drive TXDOT ROW 237,200
Gainsharing 205,711
CSTV-19 Improvements 194,582
Print Mail 117,510
Police Department - Grants 91,328
Police Department - Generators 76,000
Eisenhower Street Land Purchase 73,000
Legal Fees 70,000
Roadway Impact Fee Study 57,000
Red Light Camera 35,000
Fleet Purchases 27,297
Police Patrol Car 27,175
Economic Development Personnel 24,609
Water Services Personnel 20,923
Information Technology - E-911 17,000
Court Recording System 5,385
15,611,981$
1. Budget appropriations are adopted at the fund level for all funds except the General Fund.
In the General Fund, budget appropriations are adopted at the department level.
Expenditures in excess of appropriations for each fund are prohibited by the City Charter.
Appropriations that have not been expended or lawfully encumbered lapse at the end of the
budget year.
2. Formal budgetary integration is legally enacted and employed as a management control
device during the year for all funds.
3. Encumbrance accounting is employed in governmental funds. Encumbrances (e.g.,
purchase orders, contracts) outstanding at year end are reported as reservations of fund
balances and do not constitute expenditures or liabilities.
City of College Station, Texas
45
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2008
B. Excess of Expenditures Over Appropriations
The amounts of any excesses of expenditures over appropriations during fiscal year 2008, and
the funds in which they occurred are as follows:
Fund Amount
General Fund, Fire Department 367,209$
General Fund, Other 637
Convention Center 326
Business Park 81
General Government Projects 99,777
Parks and Recreation Projects 910,812
Hurricane Ike made landfall at Galveston, Texas on September 13, 2008, causing catastrophic
damage to coastal Texas. The Fire Department responded through the Texas Task Force
sending mutual aid to affected communities. The timing of the disaster precluded inclusion on
the final budget amendment of the fiscal year.
The expenditures in the Business Park, General Government Projects and Parks and
Recreation Projects were budgeted in prior years. Overall, these projects remained within
budget.
IV. Detailed Notes on All Funds
A. Cash and Investments
Cash and investments are accounted for within the pooled cash fund of the City. The City
records investments at fair value in accordance with GASB Statement No. 31, Accounting and
Financial Reporting for Certain Investments and for External Investment Pools.
Cash and cash equivalents, investment balances and interest income are allocated to the City’s
participating funds on a monthly basis. The amount of the allocation is based on each fund's
proportional equity to total pooled equity.
Weighted Average
Fair Value Maturity (days)
Bank Demand Accounts 4,871,146$ 1
U.S. Agency Bonds 41,753,405 479
Texas Local Government Investment Pool 80,755,438 1
Fidelity Money Market Mutual Fund 1,830,042 1
129,210,031$
Portfolio Weighted Average Maturity 305
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
City of College Station, Texas
46
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2008
720 days) or less and by limiting the maximum maturity of any security purchased to five years
or less.
Credit risk. Investments authorized by the City’s policy are those approved by the revised State
of Texas Public Funds Investment Act of 1997 and the Texas Public Collateral Act of 1989.
These investments include the following:
Obligations of the United States or its agencies and instrumentalities;
Direct obligations of the State of Texas or its agencies;
Other obligations, the principal and interest on which is unconditionally
guaranteed or insured by the State of Texas or the United States or its
agencies;
Obligations of states, agencies, counties, cities, and other political subdivisions
of any state having been rated as to investment quality by a nationally
recognized investment rating firm and having received a rating of not less than
“A” or its equivalent;
Certificates of deposit issued by state and national banks domiciled in Texas
that are secured by obligations qualified as acceptable collateral;
Certificates of deposit issued by savings and loan associations domiciled in
Texas that are secured obligations qualified as acceptable collateral;
Repurchase agreements or reverse repurchase agreements;
Commercial paper with a stated maturity of 270 days or less from the date of
issuance that is rated not less than “A-1,” “P-1,” or its equivalent;
Money market mutual funds that are SEC registered no-load funds with dollar-
weighted average portfolio maturity of 120 days or less;
Guaranteed investment contracts; or
Public funds investment pools.
As of September 30, 2008 the City’s investments were rated by Standard & Poor's and Moody's
as follows:
S&P Moody's
Texpool AAAm N/A*
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.
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, 2008 the issuers whose securities represented more than 5% of the City's
investment portfolio were as follows: the Federal Home Loan Bank (19%) and the Federal Farm
Credit Bank (12%).
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%.
City of College Station, Texas
47
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2008
Custodian credit risk - investments. For an investment, this is the risk that, in the event of the
failure of the counterparty, the government will not be able to recover the value of its
investments or collateral securities that are in the possession of an outside party. The City's
investment portfolio requires that all security transactions be conducted on a Delivery-vs.-
Payment basis and that all securities be held by a third party custodian and evidenced by
safekeeping receipts.
B. Receivables
Receivables as of year end for the City's individual major funds and nonmajor and internal
service funds in the aggregate, including the applicable allowances for uncollectible accounts,
are as follows:
Internal
Governmental Activities:Debt Streets Service Fund
General Service Projects Nonmajor Allocation Total
Taxes:
Property 235,453$ 280,204$ -$ -$ -$ 515,657$
Beverage 104,508 - - - - 104,508
Sales 1,769,896 - - - - 1,769,896
Subtotal Taxes 2,109,857 280,204 - - - 2,390,061
Accrued Interest 57,390 15,920 105,864 138,136 55,538 372,848
Grants 131,073 - - 428,270 - 559,343
Accounts/Charges for Services 1,556,347 - 380,187 641,288 29,676 2,607,498
Miscellaneous 20,547 - - - 1,494 22,041
Total Gross Governmental 3,875,214 296,124 486,051 1,207,694 86,708 5,951,791
Less Allowance for
Uncollectible Accounts (895,492) - (373,234) (86,222) - (1,354,948)
Net Total Receivables 2,979,722$ 296,124$ 112,817$ 1,121,472$ 86,708$ 4,596,843$
Business-type Activities:Internal
Service Fund
Electric Water Sewer Nonmajor Allocation Total
Accrued Interest 64,914$ 32,257$ 32,860$ 6,206$ 691$ 136,928$
Accounts/Charges for Services 10,997,471 1,642,946 2,277,836 1,013,093 38,372 15,969,718
Miscellaneous 1,111,693 2,000 - 17,792 15,003 1,146,488
Total Gross Business-type 12,174,078 1,677,203 2,310,696 1,037,091 54,066 17,253,134
Less Allowance for
Uncollectible Accounts (2,066,777) (93,795) (181,188) (115,531) (24,811) (2,482,102)
Net Total Receivables 10,107,301$ 1,583,408$ 2,129,508$ 921,560$ 29,255$ 14,771,032$
Governmental funds report deferred revenue in connection with receivables for revenues that are
not considered to be available to liquidate liabilities of the current period. Governmental funds also
defer revenue recognition in connection with resources that have been received but not yet earned.
As of fiscal year end, the various components of deferred revenue and unearned revenue reported
in the governmental funds were as follows:
Unavailable Unearned Total
Property Tax 515,657$ -$ 515,657$
Intergovernmental 273,232 - 273,232
Fines and Penalties - 584,843 584,843
Emergency Services 439,261 - 439,261
Cemetery Plot Sales - 185,160 185,160
Other 25,245 25,000 50,245
1,253,395$ 795,003$ 2,048,398$
City of College Station, Texas
48
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2008
C. Capital Assets
Capital asset activity for the year ended September 30, 2008 was as follows:
Beginning Ending
Governmental Activities Balance Increases Decreases Balance
Capital Assets, Not Being Depreciated
Land 28,010,449$ 1,947,167$ -$ 29,957,616$
Construction in Progress 27,616,670 19,536,925 (18,408,365) 28,745,230
Total Capital Assets, Not Being Depreciated 55,627,119 21,484,092 (18,408,365) 58,702,846
Capital Assets, Being Depreciated
Buildings and Building Improvements 22,436,773 3,131,710 - 25,568,483
Improvements Other Than Buildings 22,670,145 1,452,423 - 24,122,568
Machinery and Equipment 34,275,667 3,450,602 (4,112,566) 33,613,703
Infrastructure 171,360,045 15,940,926 - 187,300,971
Total Capital Assets, Being Depreciated 250,742,630 23,975,661 (4,112,566) 270,605,725
Less Accumulated Depreciation for:
Buildings and Building Improvements 6,551,340 647,885 - 7,199,225
Improvements Other Than Buildings 8,689,308 983,056 - 9,672,364
Machinery and Equipment 20,652,978 3,154,497 (1,793,020) 22,014,455
Infrastructure 84,834,556 5,755,780 - 90,590,336
Total Accumulated Depreciation 120,728,182 10,541,218 (1,793,020) 129,476,380
Total Capital Assets Being Depreciated, Net 130,014,448 13,434,443 (2,319,546) 141,129,345
Governmental Type Activities Capital Assets, Net 185,641,567$ 34,918,535$ (20,727,911)$ 199,832,191$
Beginning Ending
Business-Type Activities Balance Increases Decreases Balance
Capital Assets, Not Being Depreciated
Land 690,707$ -$ -$ 690,707$
Construction in Progress 58,657,661 28,666,896 (19,487,135) 67,837,422
Total Capital Assets, Not Being Depreciated 59,348,368 28,666,896 (19,487,135) 68,528,129
Capital Assets, Being Depreciated
Electric System 113,757,058 14,719,902 (1,476,893) 127,000,067
Water System 79,216,419 6,136,950 (36,015) 85,317,354
Wastewater System 79,065,420 3,156,870 (11,913) 82,210,377
Buildings and Building Improvements 5,743,755 - - 5,743,755
Machinery and Equipment 1,332,577 79,224 (823,568) 588,233
Total Capital Assets, Being Depreciated 279,115,229 24,092,946 (2,348,389) 300,859,786
Less Accumulated Depreciation for:
Electric System 50,834,312 5,176,026 (1,591,226) 54,419,112
Water System 25,849,761 2,280,354 (85,959) 28,044,156
Wastewater System 23,680,135 2,496,508 (34,505) 26,142,138
Buildings and Building Improvements 851,778 143,659 - 995,437
Machinery and Equipment 1,273,101 22,836 (822,935) 473,002
Total Accumulated Depreciation 102,489,087 10,119,383 (2,534,625) 110,073,845
Total Capital Assets Being Depreciated, Net 176,626,142 13,973,563 186,236 190,785,941
Business Type Activities Capital Assets, Net 235,974,510$ 42,640,459$ (19,300,899)$ 259,314,070$
City of College Station, Texas
49
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2008
Depreciation expense was charged to governmental activities of the City as follows:
Governmental Activities
Planning and Development Services 6,204$
Fire 78,143
Fiscal Services 25,764
General Government 575,052
Information Services 164,424
Parks and Recreation 923,507
Police 57,278
Public Works 5,832,386
Non-departmental 667,890
Capital Assets Held by the City's Internal
Service Funds 2,210,570
Total Depreciation Expense 10,541,218$
D. Interfund Transactions
Transfers between funds during the year were as follows:
Governmental Business-type
Transfers In Transfers Out Activities, net Activities, net
Governmental Purpose:
General Fund 11,591,668$ (942,224)$ 10,649,444$ -$
Debt Service Fund 1,422,163 - 1,422,163 -
Streets Projects 143,563 - 143,563 -
Nonmajor Governmental Funds:
Special Revenue Funds:
Community Development - (528,166) (528,166) -
Red Light Camera - (28,233) (28,233) -
Wolf Pen Creek TIF - (1,042,475) (1,042,475) -
Capital Projects Funds:
Business Park Projects - (500,000) (500,000) -
General Government 91,417 - 91,417 -
Parks and Recreation Projects 579,603 - 579,603 -
Business-type Activities:
Enterprise Funds:
Electric 470,156 (7,641,082) - (7,170,926)
Water - (1,363,042) - (1,363,042)
Wastewater - (1,347,193) - (1,347,193)
Nonmajor Proprietary Funds:
Sanitation - (515,500) - (515,500)
Internal Service Funds:
Equipment Replacement - (3,345,029) (3,345,029) -
Print/Mail Services 116,878 - 116,878 -
Utility Customer Service - (37,293) - (37,293)
14,415,448$ (17,290,237)$ 7,559,165$ (10,433,954)$
Adjust for transfer to Joint
Venture from Equipment Replacement 2,874,789 2,874,789
14,415,448$ (14,415,448)$ 10,433,954$ (10,433,954)$
City of College Station, Texas
50
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2008
During the fiscal year ending September 30, 2008, the City made a transfer to the Brazos
Valley Solid Waste Management Agency (BVSWMA), a joint venture with the City of Bryan.
The transfer represented BVSWMA’s ownership in the City’s Equipment Replacement program,
which BVSWMA has participated in since 2002 and the liquidation of the year’s participation in
the fund.
Transfers are used to (1) move revenues from the funds with collection authorization to the debt
service fund as debt service principal and interest payments become due, (2) move revenues
from enterprise funds to the general fund to record the return on the investment, (3) move
revenues from enterprise funds to the general fund for economic development activity, (4) move
unrestricted general fund revenues to finance various programs that the government must
account for in other funds in accordance with budgetary authorizations.
The composition of due to/due from balances as of September 30, 2008 is as follows:
Due To Due From Amount
Water Fund Economic Development 40,000$
Wastewater Economic Development 40,000$
Electric Fund Economic Development 40,000$
Electric Fund Hotel Tax Fund 200,000$
Advance From Advance To Amount
Water Fund Economic Development 160,000$
Wastewater Economic Development 160,000$
Electric Fund Economic Development 160,000$
The outstanding balance between the general fund and the print/mail fund 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 tax fund represents an amount related to an
economic development project. The loan is expected to be liquidated in fiscal year 2009.
Internal loans (interfund advances) of $200,000 each from the Water, Wastewater and Electric
Funds to the Economic Development Fund were recorded during the fiscal year ended
September 30, 2008. The loans partially funded the purchase of real property related to an
economic development project and are repayable in even installments over five years.
E. Deferred Charges
See Note IV B.
F. Prior Period Adjustment
The City’s 2004 Certificates of Obligation funded business-type activities in the Electric and
Wastewater Funds. A prior period adjustment was made to reflect $4,459,740 in Electric Fund
and $3,780,260 in Wastewater Fund Certificates of Obligation in those funds and to reduce
beginning net assets by those amounts. Long-term debt reflects this change as of the
beginning of the fiscal year.
City of College Station, Texas
51
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2008
G. Long-Term Debt
A summary of long-term debt transactions, including current portion, for the year ended
September 30, 2008 is as follows:
Amounts
Beginning Incurred/ Matured/ Ending Due Within
Balance Issued Retired Balance One Year
Governmental Activities:
General Obligation Bonds 55,720,000$ 9,455,000$ 4,480,000$ 60,695,000$ 4,885,000$
Certificates of Obligation 33,500,000 10,515,000 4,050,000 39,965,000 3,340,000
Accrued Vacation 2,269,709 1,333,042 1,240,176 2,362,575 190,000
Governmental Activity
Long Term Debt 91,489,709$ 21,303,042$ 9,770,176$ 103,022,575$ 8,415,000$
Business Type Activities:
Certificates of Obligation 8,240,000$ 15,925,000$ 345,000$ 23,820,000$ 900,000$
Utility Revenue Bonds 105,215,000 5,655,000 99,560,000 5,835,000
Accrued Vacation:
Electric Fund 172,714 176,355 159,782 189,287 9,463
Water Fund 87,048 72,046 76,830 82,264 4,113
Sewer Fund 81,066 83,934 81,315 83,685 4,184
Other 109,381 129,890 119,626 119,645 5,982
Business Type Activity
Long Term Debt 113,905,209$ 16,387,225$ 6,437,553$ 123,854,881$ 6,758,743$
Internal service funds predominantly serve the governmental funds. All internal service funds,
except for the utility customer service fund, are included as part of the above totals for
governmental activities. At year end $50,927 of internal service funds’ accrued vacation was
included in governmental activities, and $59,419 of accrued vacation for the utility customer
service fund was included in business type activities. For the governmental activities, accrued
vacation is generally liquidated by the general fund.
City of College Station, Texas
52
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2008
Long-term debt at September 30, 2008 includes the following individual issues (not including
unamortized premiums or discounts):
Interest Issue Maturity Original Net
Rate (%) Date Date Issue Retirement Outstanding
General Obligation Bonds:
1996 Issue and Refunding 5.05-5.15 12/1/96 2/15/09 11,845,000$ 11,380,000$ 465,000$
1998 Issue 4.65-4.85 4/1/98 2/15/11 6,200,000 5,120,000 1,080,000
1999 Issue 4.25-5.00 4/15/99 2/15/17 6,230,000 2,415,000 3,815,000
2000 Issue 5.00-5.20 4/1/00 2/15/11 8,460,000 7,195,000 1,265,000
2001 Issue 4.00-5.50 8/1/01 2/15/17 4,140,000 2,200,000 1,940,000
2002 Issue 4.25-5.125 3/1/02 2/15/21 6,445,000 1,795,000 4,650,000
2003 Issue 3.00-4.50 7/1/03 2/15/23 4,790,000 750,000 4,040,000
2004 Issue 2.875-5.00 5/1/04 2/15/24 12,940,000 3,110,000 9,830,000
2005 Issue 4.00-6.00 5/1/05 2/15/25 5,710,000 920,000 4,790,000
2006 Issue 4.375-6.375 7/1/06 2/15/26 7,375,000 1,005,000 6,370,000
2006 Issue - Refunding 4.00-5.00 12/1/06 2/15/18 10,255,000 40,000 10,215,000
2007 Issue 4.25-6.25 9/1/07 2/15/27 3,930,000 1,150,000 2,780,000
2008 Issue 4.0 - 5.0 9/1/08 215/28 9,455,000 - 9,455,000
97,775,000$ 37,080,000$ 60,695,000$
Certificates of Obligation - Governmental Activities:
2000 Issue 5.00-5.125 4/1/00 2/15/10 4,050,000$ 3,730,000$ 320,000$
2000A Issue 4.75-5.50 8/1/00 2/15/20 8,100,000 3,280,000 4,820,000
2001 Issue 4.00-5.00 8/1/01 2/15/20 3,650,000 2,450,000 1,200,000
2002 Issue 4.25-5.125 3/1/02 2/15/20 14,480,000 6,120,000 8,360,000
2003A Issue 2.90-4.20 7/1/03 2/15/23 780,000 120,000 660,000
2004 Issue 2.875-5.00 5/1/04 2/15/24 500,000 500,000 -
2005 Issue 3.00-4.50 5/1/05 2/15/25 7,595,000 3,425,000 4,170,000
2006 Issue 4.375-6.375 7/1/06 2/15/26 8,325,000 1,215,000 7,110,000
2007 Issue 4.25-6.25 9/1/07 2/15/27 3,960,000 1,150,000 2,810,000
2008 Issue 3.25 - 5.0 9/1/08 2/15/28 10,515,000 - 10,515,000
61,955,000$ 21,990,000$ 39,965,000$
Certificates of Obligation - Business-type Activities:
2004 Issue 2.875-5.00 5/1/04 2/15/24 8,915,000 1,020,000 7,895,000$
2008 Issue 3.25 - 5.0 9/1/08 2/15/28 15,925,000 - 15,925,000
24,840,000$ 1,020,000$ 23,820,000$
Utility Revenue Bonds:
1998 Issue 4.65-4.80 4/1/98 2/1/10 2,700,000 2,400,000 300,000$
2000 Issue 5.00-5.25 4/1/00 2/15/12 10,500,000 8,105,000 2,395,000
2001 Issue 4.50-5.50 8/1/01 2/15/21 23,500,000 5,470,000 18,030,000
2002 Issue 4.00-6.00 3/1/02 2/15/22 18,215,000 3,625,000 14,590,000
2003 Issue - Refunding 3.50-4.25 12/1/02 2/1/14 11,160,000 4,070,000 7,090,000
2003A Issue 2.50-4.25 7/1/03 2/15/23 4,850,000 1,710,000 3,140,000
2005 Issue 4.00-5.50 5/1/05 2/1/25 8,035,000 640,000 7,395,000
2005A Issue - Refunding 3.00-5.25 8/1/05 2/1/18 12,995,000 440,000 12,555,000
2006 Issue 4.375-6.375 7/1/06 2/1/26 16,950,000 975,000 15,975,000
2007 Issue 4.00-5.75 9/1/07 2/1/27 18,665,000 575,000 18,090,000
127,570,000$ 28,010,000$ 99,560,000$
City of College Station, Texas
53
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2008
The annual requirements to amortize debt outstanding as of September 30, 2008 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
2009 4,885,000$ 2,605,790$ 3,340,000$ 1,740,215$
2010 4,005,000 2,411,244 2,380,000 1,628,321
2011 4,325,000 2,211,104 1,960,000 1,529,689
2012 4,480,000 2,005,743 2,055,000 1,440,479
2013 4,405,000 1,810,095 2,175,000 1,348,273
2014-2018 19,870,000 6,261,200 12,125,000 5,119,789
2019-2023 12,100,000 2,854,244 9,820,000 2,328,597
2024-2029 6,625,000 586,366 6,110,000 597,080
60,695,000$ 20,745,786$ 39,965,000$ 15,732,443$
Business-Type Activities
Utility Revenue Certificates of Obligation
Year Ended
September 30, Principal Interest Principal Interest
2009 5,805,000$ 1,392,764$ 900,000$ 973,470$
2010 6,010,000 1,427,565 865,000 965,835
2011 6,220,000 1,504,420 910,000 931,236
2012 6,450,000 1,547,368 950,000 897,861
2013 6,700,000 1,764,296 995,000 861,785
2014-2018 32,305,000 8,037,032 5,715,000 3,647,151
2019-2023 25,515,000 7,227,189 7,260,000 2,254,609
2024-2029 10,555,000 3,064,907 6,225,000 676,794
99,560,000$ 25,965,541$ 23,820,000$ 11,208,741$
The City intends to retire all of its general long-term liabilities, plus interest, from ad valorem
taxes. The proprietary fund type long-term debt will be repaid, plus interest, from the operating
revenues of the Electric, Water, and Wastewater Funds.
General Obligation Bonds and Certificates
The City issues General Obligation Bonds and Certificates of Obligation to provide funds for the
acquisition and construction of major capital facilities. These types of bonds have been issued
by the City for both governmental activities as well as business-type activities. These bonds
are reported in the proprietary funds if they are expected to be repaid from proprietary fund
revenue.
General Obligation Bonds are direct obligations, for which the City has pledged the full faith and
credit of the City. These bonds generally are issued as 20-year serial bonds with varying
amounts of principal maturing each year.
The City is required by bond covenants to create from ad valorem tax revenues a sinking fund
sufficient to pay the current interest and principal installments as they become due. In addition
to the sinking fund, there are a number of limitations and restrictions contained in the various
City of College Station, Texas
54
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2008
general obligation bonds and certificate indentures. The City is in compliance with the
significant limitations and restrictions at September 30, 2008.
On September 1, 2008, the City issued $9.455 million in General Obligation Bonds with a true
interest cost of 4.3721%. The proceeds from the sale of the bonds will be used to (1) pay for
costs of construction and acquisition of and improvements to City streets, sidewalks, hike and
bike trails, traffic signals and control systems, parks and park facilities and (2) pay the costs
incurred in connection with the issuance of the Bonds.
On September 1, 2008, the City issued $26.440 million in Certificates of Obligation with a true
interest cost of 4.3446%. The proceeds from the sale of the Certificates will be used to (1) pay
for the costs of construction acquisition and improvements to City streets, park and recreation
improvements, a new City-owned cemetery, public municipal facilities and technology projects;
(2) fund electric, water, and wastewater system improvements and (3) to pay costs incurred in
connection with the issuance of the Certificates.
Revenue Bonds
Utility system revenue bonds are secured by the net revenues of the Electric, Water, and
Wastewater Funds as defined in the respective bond indentures. The City pledges income
derived from the acquired or constructed assets to pay the debt service. In addition, the City is
required to maintain debt service funds and bond reserve funds for all outstanding revenue
bonds. Amounts in the reserve fund are to be used to pay principal and interest on outstanding
bonds at any time sufficient funds are not available in the bond interest and redemption fund.
The bond indentures require that the City accumulate reserves to an amount equal to the
average annual principal and interest requirements of all outstanding bonds secured by the net
revenues of the system.
Arbitrage Compliance
Arbitrage provisions of the Internal Revenue Tax Act of 1986 require the City to rebate to the
federal government excess arbitrage earnings from bond proceeds. As of September 30, 2008,
the City did not have an arbitrage rebate liability.
Defeasance
In prior years, the City defeased certain revenue and refunding bonds totaling $23,810,000 and
certain general obligation bonds, refunding bonds and certificates of obligation totaling
$10,185,000 by placing the proceeds of the refunding bonds in an irrevocable trust to provide
for all future debt service on the refunded bonds. Accordingly, the trust account assets and the
liability for the defeased bonds are not included in the City's financial statements.
The advanced refunding of Series 2006 was undertaken to reduce total general obligation and
certificate of obligation debt service payments over 12 years by $651,000 and resulted in
economic gain of $506,168. The advanced refunding of Utility System Revenue Series 2005A
and 2003 were undertaken to reduce total utility revenue debt service payments over the next
10 and 6 years, respectively by $1,037,232 and $885,000, respectively and resulting in
economic gains of $813,969 and $720,738 respectively.
At September 30, 2008, the outstanding principal balance of the defeased revenue refunding
bonds was $4,770,000 and the outstanding principal balance of the defeased general obligation
bonds and certificates of obligation was $5,620,000.
City of College Station, Texas
55
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2008
The tables below reflect refunded debt outstanding at September 30, 2008 and are net of any
amounts to be paid or retired by the trustee on October 1, 2008:
Refunded in Year Ended September 30, 2008
General Obligation Improvement Bonds, Series 1998 2,705,000$
Utility System Revenue Bonds, Series 1998 1,330,000
4,035,000$
Refunded in Prior Years
Utility System Revenue & Refunding Bonds, Series 1993 2,500,000$
Utility System Revenue Bonds, Series 1994 8,250,000
Utility System Revenue Bonds, Series 1995 2,700,000
Utility System Revenue Bonds, Series 1996 4,260,000
General Obligation & Refunding Bonds, Series 1996 1,860,000
19,570,000$
H. Reservations of Fund Balances and Net Assets
Fund balances for governmental funds have been reserved at September 30, 2008 as follows:
General Fund:
Reserved for Encumbrances 959,684$
Reserved for Inventory 163,063
Reserved for Prepaid 343,525
Reserved for Police Seizure 36,256
Reserved for Court Technology 265,212
Reserved for Court Security 291,628
Reserved for Court Efficiency Improvements 36,165
Reserved for Juvenile Case Manager 209,943
Streets Projects:
Reserved for Encumbrances 3,698,400
Reserved for Capital Projects 20,689,995
Debt Service:
Reserved for Bond Debt Service 3,817,694
Other Governmental Funds:
Reserved for Encumbrances 7,907,916
Reserved for Capital Projects 10,949,366
Reserved for Endowment 1,756,167
Total 51,125,014$
City of College Station, Texas
56
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2008
V. Other Information
A. Property Taxes
Property tax is levied each October 1 on the assessed (appraised) value listed as of the prior
January 1 for all real and business personal property located in the City. Taxable assessed
value represents the appraisal value less applicable exemptions authorized by the City Council.
Taxes are due October 1 and are delinquent after the following January 31. Tax liens are
automatic and become enforceable as of January 1 of each year. Taxes become delinquent
February 1 and are subject to interest and penalty charges. The tax rate to finance general
governmental services including debt service was 43.94 cents per $100 of assessed valuation
for the year ended September 30, 2008. 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 $565,189 for claims incurred but not
reported as of September 30, 2008.
In fiscal year 2008 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 deductible between $50,000 and $250,000 per occurrence on its property insurance
policy with Affiliated FM. Property insurance covers all direct losses and some indirect losses.
On all lines of liability coverage, the City is self-insured. The City has procured excess liability
coverage through Star National Insurance Company that is A.M. Best rated A-VIII. The self-
insured retention ("SIR") is $250,000 per claim. The claims are handled by Risk Management
staff.
City of College Station, Texas
57
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2008
The City is also self-insured on its workers' compensation coverage. The City opted for excess
workers' compensation coverage with a SIR of $250,000 per claim feature. The City's carrier is
Star National Insurance Company, and 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
$373,830 in the property and casualty fund and the potential liability of $466,936 in the workers’
compensation fund. The results of the process to estimate the claims liability is not an exact
amount as it depends on many complex factors, such as inflation, changes in legal doctrines,
and damage awards. Accordingly, claims are reevaluated periodically to consider the effects of
inflation, recent claim settlement trends (including frequency and amount of pay-outs), and
other economic and social factors.
Lastly, the City also uses its Unemployment Fund to account for self-insurance activity involving
claims filed under unemployment compensation laws. Monthly contributions based on a
percentage of payroll are determined each year during the budget process and are used to fund
this activity.
Settlements have not exceeded self-insured retention for each of the past three fiscal years.
The liabilities for insurance claims reported in each of the funds are based on Governmental
Accounting Standards Board Statement No. 10, which requires that a liability for claims be
reported if information prior to the issuance of the financial statements indicates that it is
probable that a liability has been incurred at the date of the financial statements and if the
amount of the loss can be reasonably estimated. These liabilities include an estimate for
incurred but not reported claims. Changes in the balances of claims liabilities for the self-
insurance funds that are accounted for as Internal Service Funds for fiscal years 2008 and
2007 are as follows:
2008 2007
Unpaid Claims, October 1 1,186,027$ 1,165,874$
Incurred Claims (including IBNR's) 4,532,452 4,569,605
Claims Paid (4,312,524) (4,549,452)
Unpaid Claims, September 30 1,405,955$ 1,186,027$
C. Joint Venture
The Brazos Valley Solid Waste Management Agency (“BVSWMA”) was formed under a joint
solid waste management agreement between the Cities of College Station and Bryan. College
Station and Bryan agreed to cooperatively operate a joint facility for the proper disposal of solid
waste for the two cities and outside customers. Each city reports a 50% ownership in
BVSWMA. BVSWMA has contracted with the City of College Station to serve as landfill
operator for the facility.
BVSWMA is governed by a Policy Advisory Board ("Board") which is charged with providing
recommendations to the City Councils of College Station and Bryan regarding the joint venture.
The Board is comprised of three voting members: the Mayors of College Station and Bryan,
who alternate each year as Chair, and one City Council Member from the City that is not
City of College Station, Texas
58
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2008
serving as Chair. The City Managers of each City and a representative of Grimes County
designated by the Commissioners Court serve as non-voting or ex-officio members of the
Board. Legal oversight of BVSWMA is vested in the City Councils of the two cities. The annual
budget is prepared and approved by the BVSWMA Board and adopted by both City Councils.
All contracts and expenditures in excess of $50,000 and contractual change orders in excess of
$25,000 require the approval of both the Bryan and College Station City Councils.
The City's share of BVSWMA's change in net assets for fiscal year 2008 was $2,848,177.
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
$3.9 million reported as accrued postclosure maintenance costs at September 30, 2008,
represents the cumulative amount reported to date based on the use of 83 percent of the
estimated capacity of the landfill. BVSWMA will recognize the remaining estimated cost of
closure and postclosure care of $814,000 as the remaining estimated capacity is filled. These
amounts are based on what it would cost to perform all closure and postclosure care in 2008.
BVSWMA expects to close the landfill in the year 2010. Actual cost may be higher due to
inflation, changes in technology, or changes in regulations.
City of College Station, Texas
59
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2008
The following is a summary of information from the audited financial statements of BVSWMA as
of September 30, 2008:
2008 2007
Assets:
Current Assets 13,499,536$ 11,950,259$
Capital Assets
(Net of $4,664,182 Accumulated Depreciation
at 2008 and $4,287,156 at 2007)11,221,723 7,266,984
Deferred Landfill Permits
(Net of $828,017 Accumulated Amortization
at 2008 and $741,762 at 2007)2,803,321 2,458,540
27,524,580 21,675,783
Liabilities:
Current Liabilities 628,228 694,021
Noncurrent Liabilities:
Accrued Post Closure Maintenance Costs 3,903,979 3,685,746
Total Liabilities 4,532,207 4,379,767
Net Assets
Invested In Capital Assets 11,221,723 7,266,984
Unrestricted 11,770,650 10,029,032
Total Net Assets 22,992,373$ 17,296,016$
Program Revenues 6,719,647$ 6,218,413$
Expenses 4,682,205 4,785,547
Transfers from the City of College Station 2,874,789 -
4,912,231 1,432,866
General Revenues 784,126 618,013
Change in Net Assets 5,696,357$ 2,050,879$
A copy of BVSWMA's separate audited financial statements may be obtained from the City's
Fiscal Services Department.
D. Retirement Plan
Plan Description
The City provides pension benefits for all of its full-time employees through a nontraditional,
joint contributory, hybrid defined benefit plan in the state-wide Texas Municipal Retirement
System ("TMRS"), one of 827 administered by TMRS, an agent multiple-employer public
employee retirement system.
Benefits
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 at least
City of College Station, Texas
60
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2008
equal to 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. 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 and Funding Policy
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, 2007 valuation is effective for rates beginning
January 2009).
City of College Station, Texas
61
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2008
The following is a schedule of actuarial liabilities and funding progress for the last three years:
Actuarial Valuation Date 12/31/2007 12/31/2006 12/31/2005
Actuarial Value of Assets 87,193,697$ 80,758,249$ 75,655,678$
Actuarial Accrued Liability 130,310,054 102,166,047 94,605,300
Percentage Funded 66.9%79.0%80.0%
Unfunded (Overfunded) Actuarial Accrued
Liability (UAAL)43,116,357 21,407,798 18,949,622
Annual Covered Payroll 36,703,161 34,143,239 31,987,028
UAAL as a Percentage of Covered Payroll 117.5%62.7%59.2%
Net Pension Obligation (NPO) at Beginning
of Period - - -
Plus Annual Pension Cost:
Annual Required Contribution (ARC)4,750,851 4,316,276 4,030,369
Less Contributions Made 4,750,851 4,316,276 4,030,369
NPO at the End of the Period -$ -$ -$
Actuarial assumptions for the last three years are as follows:
2007 2006 2005
Actuarial Cost Method:Projected Unit
Credit Unit Credit Unit Credit
Amortization Method:Level Percent of
Payroll
Level Percent of
Payroll
Level Percent of
Payroll
Remaining Amortization Period:30 Years--Closed
Period
25 Years--Open
Period
25 Years--Open
Period
Asset Valuation Method:Amortized Cost Amortized Cost Amortized Cost
Investment Rate of Return:7%7%7%
Projected Salary Increases:varies by age and
service None None
Includes Inflation at:3.00%3.50%3.50%
Cost-of-Living Adjustments:2.1% (3.0% CPI) None None
Each of the 827 Municipalities have an annual, individual actuarial valuation performed. All
assumptions for the 12/31/07 valuations are contained in the 2007 TMRS Comprehensive Annual
Financial Report, a copy of which may be obtained by writing to P.O. Box 149153, Austin, Texas
78714-9153.
At its December 8, 2007 meeting, the TMRS Board of Trustees adopted actuarial assumptions to
be used in the actuarial valuation for the year ended December 31, 2007. A summary of actuarial
assumptions and definitions can be found in the December 31, 2007 TMRS Comprehensive Annual
Financial Report (CAFR).
Since its inception, TMRS has used the Unit Credit actuarial funding method. This method
accounts for liability accrued as of the valuation date, but does not project the potential future
liability of provisions adopted by a city. Two-thirds of the cities participating in TMRS have adopted
the Updated Service Credit and Annuity Increases provisions on an annually repeating basis. For
City of College Station, Texas
62
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2008
the December 31, 2007 valuation, the TMRS Board determined that the Projected Unit Credit
(PUC) method should be used, which facilitates advance funding for future updated service credits
and annuity increases that are adopted on an annually repeating basis. In addition, the Board also
adopted a change in the amortization period from a 25-year “open” to a 25-year “closed” period.
TMRS Board of Trustee rules provide that, whenever a change in actuarial assumptions or methods
results in a contribution rate increase in an amount greater than 0.5%, the amortization period may
be increased up to 30 years, unless a city requests that the period remain at 25 years. For cities
with repeating features, these changes will likely result in higher required contributions and lower
funded ratios. To assist in this transition to higher rates, the Board also approved an eight-year
phase-in period, which will allow cities the opportunity to increase their contributions gradually
(approximately 12.5% each year) to their full rate (or their required contribution rate).
If the changes in actuarial funding method and assumptions had not been adopted for the 2007
valuation, the City’s unfunded actuarial liability would have been $24,327,300 and the funded ratio
would have been 78.2%.
In addition, TMRS is currently working on its legislative package for 2009. There is a possibility that
the investment rate of return (IRR) assumption of 7% would need to be lowered if desired legislation
for the 2009 session is unsuccessful. Maintaining a 7% IRR assumption is contingent in part on the
continued diversification of the TMRS portfolio, from an almost exclusive bond portfolio to a portfolio
that includes equities as well. If state legislation needed to facilitate the continued diversification is
not enacted, TMRS may have to revisit the continued diversification of the portfolio and consider
reducing the assumed IRR. A reduction in the IRR would result in increased actuarial accrued
liabilities, thus causing further increases in city contribution rates, following the December 31, 2009
actuarial valuation.
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 below:
Fiscal Year Annual Required Contributions Net Pension
Ending Contribution (ARC) Made Obligation
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 -
2006 4,030,369 4,030,369 -
2007 4,316,276 4,316,276 -
2008 $4,750,851 $4,750,851 -
City of College Station, Texas
63
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2008
Accrued Accrued as a Percent of
Actuarial Actuarial Actuarial Actuarial Pension Benefit
Valuation Date Value of Assets Liability (AAL) Liability (UAAL) Obligation
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%
12/31/2005 75,655,678 94,605,300 18,949,622 80%
12/31/2006 80,758,249 102,166,047 21,407,798 79%
12/31/2007 $87,193,697 $130,310,054 $43,116,357 66.9%
Annual UAAL as a
Actuarial Covered Percentage of
Valuation Date Payroll Covered Payroll
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%
12/31/2005 31,987,028 59%
12/31/2006 34,143,239 63%
12/31/2007 $36,703,161 117.5%
Post Retirement/Employment Benefits
In addition to providing pension benefits, the City provides postretirement medical, dental,
vision, drug and life insurance benefits for retired employees. The City has the authority to
amend the plan. This other post employment benefit (OPEB) plan was established by City
Resolution No. 9-13-90-5.10, which was passed and approved by the City Council on
September 13, 1990. According to this resolution, employees who retire while working for the
City and their dependents are eligible to remain on the City’s health and dental plan as long as
the employee makes monthly premium payments. Life insurance for eligible retirees is paid
entirely by the employer, covers only the retiree (no spouse coverage) and ceases upon
attainment of age 65.
The City determines the employer and participant contribution rates annually based on
recommendations of the staff and consulting actuary. The City currently subsidizes the retiree
medical, dental, vision and drug premium so that the retiree premium is less than the full
amount of premium for a full time employee. During fiscal year 2008, sixteen former employees
were covered under this arrangement, with claims totaling $75,670. 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 2008, one retiree was covered under this plan; however, claims filed by this
retiree were not material.
City of College Station, Texas
64
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2008
The City also provides health benefits as required by the Federal Government under the
Consolidated Omnibus Budget Reconciliation Act of 1985 ("COBRA"). COBRA requires
employers that sponsor group health plans to provide continuation of group coverage to
employees and their dependents under certain circumstances where coverage would otherwise
end. Eligible participants who qualify under COBRA pay premium costs for themselves and
dependents. COBRA participants are on the same health plan and are reimbursed at the same
levels as active employees. The amount of expenditures related to COBRA claims for the year
ended September 30, 2008 was $105,365. For the fiscal year ended September 30, 2008, the
City had twenty-one COBRA participants.
E. Deferred Compensation Plan
The City offers its employees a deferred compensation plan created in accordance with Internal
Revenue Code ("IRC") 457. The plan, as amended, is available to all employees and permits
them to defer a portion of their salary until future years. The plan funds are not available to
employees until termination, retirement, death, or emergency.
All amounts of compensation deferred under the plan (until paid or made available to the
employee or other beneficiary) were placed in trust for the exclusive benefit of the participants
and the beneficiaries. This action is in accordance with changes made to IRC Section 457.
Since the City is no longer the Plan Administrator or the trustee, the assets of the plan are no
longer a reportable fund in the City's basic financial statements.
F. Commitments and Contingencies
Construction Commitments
The City has contractual commitments of $11,597,573 in the Capital Projects Funds,
$2,727,057 in the Water Fund, $1,369,077 in the Wastewater Fund and $1,080,272 in the
Electric Fund. These commitments are for construction of various projects and will be funded
primarily from long term debt.
Contingencies
The City participates in a number of federal and state assisted grant programs. These
programs are subject to program compliance audits by the grantors or their representatives.
Any liability for reimbursement which may arise as the result of these audits is not believed to
be material.
Litigation
The City is a party to legal proceedings, many of which occur in the normal course of
operations. It is not possible at the present time to estimate ultimate outcome or liability, if any,
of the city with respect to the various proceedings. The City’s management believes that the
ultimate outcome of the various lawsuits will not have a material adverse effect on the City’s
financial position.
On July 1, 2008, the City of Bryan filed suit regarding their oversight of the joint solid waste
management agreement between the Cities of College Station and Bryan. The City of College
Station is vigorously defending its position and is preparing to file a counterclaim asserting
College Station’s ownership interest of between 97% to 50% of BVSWMA, based on the initial
investment when BVSWMA was formed. City management believes that the ultimate outcome
of the suit will not have a material adverse effect on the City’s financial position.
City of College Station, Texas
65
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2008
G. Bonds Available for Sale
Authorized general obligation bonds available for future issue are as follows:
Year Unissued
Authorized Amount
Public Buildings 1984 700,000$
Street Improvements 1984 500,000
Street Improvements 2003 1,720,000
Traffic Management 2003 455,000
Municipal Complex Improvements 2003 3,655,000
Total 7,030,000$
H. Revenue Bond Coverage
All the net revenues of the Electric, Water, and Wastewater Funds are pledged for the payment
of debt service of the revenue bonds and other indebtedness payable from those revenues.
Net revenues, as defined by the revenue bond resolutions, include substantially all of the
revenues and expenses of the above named funds other than certain interest income and
expense, and depreciation and amortization. These bond resolutions further require that the
net revenues, as defined, equal at least 1.40 times the average annual debt service on all
revenue bonds and other indebtedness payable from those revenues and 1.25 times the
maximum annual debt service on all revenue bonds and other indebtedness payable from
those revenues. The maximum annual debt service is defined as the maximum principal and
interest payments to be paid in any one year remaining in the life of the bonds, and the average
annual debt service is defined as the sum of all principal and interest payments due over the
remaining life of the bonds divided by the remaining life of the bonds. The City is in compliance
with these requirements.
I. New Accounting Pronouncements
In June 2004, GASB issued Statement No. 45, Accounting and Financial Reporting by
Employers for Postemployment Benefits Other Than Pensions, which provides guidance on
all aspects of OPEB reporting by employers. The requirements of this statement are effective
for fiscal periods beginning after December 15, 2007, for governments that were phase 2 for
the implementation for SGAS 34. The City, a phase 2 government, is implementing GASB 45
for the fiscal year ending September 30, 2009. The City hired an outside consultant who
conducted an actuarial valuation/liability assessment and estimated the annual costs of OPEB
benefits under GASB 45. The initial study for the fiscal 2006 was expanded with different
scenarios for fiscal 2009, using Projected Unit Credit – 30 year (PUC-30) as its cost method.
As noted in Note V.D., the City provides postretirement medical, dental, vision, drug and life
insurance benefits for retired employees through a single-employer defined benefit plan.
Medical (including prescription drug and vision) and dental benefits are self-insured by the City
and are currently operated on a pay-as-you-go basis. Life insurance benefits are fully insured.
The City’s estimated annual OPEB cost for the fiscal year ending September 30, 2009 range
from $9,890 if retirees pay the non-blended retiree rate (the life insurance obligation still exists)
to $1,395,242 per year if retirees pay the group (blended) rate to $2,241,140 per year if retirees
City of College Station, Texas
66
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2008
pay the current subsidized rate. City staff plans to 1) evaluate, with assistance of the actuary
and our benefits consultant, the impact of changes to the current plan structure, 2) evaluate,
with the assistance of the City’s financial advisor, possible funding options, and 3) prepare and
present a comprehensive overview with recommendations and a funding strategy to the City
Council.
In December 2006, GASB issued Statement No. 49, Accounting and Financial Reporting for
Pollution Remediation Obligations, which identifies situations in which a government is
required to report obligations relating to pollution remediation, estimate expected outlays for
the remediation, and disclose information about pollution obligations associated with clean up
efforts. This statement is effective for the City’s financial statements for periods beginning
after December 15, 2007. The City is in the process of reviewing and evaluating this
statement and its potential impact on the City’s financial statements.
In June 2007, GASB issued Statement No. 51, Accounting and Financial Reporting for
Intangible Assets, which establishes accounting and financial reporting requirements for
intangible assets to reduce inconsistencies in reporting of these types of assets. The
statement requires that all intangible assets not specifically excluded by its scope and
provisions be classified as capital assets. This statement is effective for financial statements
for periods beginning after June 15, 2009. The City is amending its capital asset policy to
address capitalizing intangible assets, including internally developed computer software.
In November 2007, GASB issued Statement No. 52, Land and Other Real Estate Held as
Investments by Endowments, which establishes accounting and financial reporting
requirements for land and other real estate held as investments by endowments. This
statement is effective for periods beginning after June 15, 2008. The City does not have
endowments that invest in land and other real estate.
In June 2008, GASB issued Statement No. 53, Accounting and Financial Reporting for
Derivative Instruments, which establishes accounting and financial reporting requirements for
derivative instruments. This statement is effective for periods beginning after June 15, 2008.
The City does not own derivative instruments.
City of College Station, Texas
67
68
CITY OF COLLEGE STATION
REQUIRED SUPPLEMENTARY
INFORMATION
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]
12/31/1999 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%
12/31/2006 75,655,678 94,605,300 18,949,622 80.0% 31,987,028 59.2%
12/31/2007 80,758,249 102,166,047 21,407,798 79.0% 34,143,239 62.7%
12/31/2008 87,193,697 130,310,054 43,116,357 66.9% 36,703,161 117.5%
*Assets are stated at cost as of December 31 of the preceding year.
69
Original Budget Final Budget Actual
Variance Over
(Under)
Revenues
Taxes 29,722,555$ 29,722,555$ 30,984,741$ 1,262,186$
Licenses and Permits 1,158,124 1,158,124 1,154,902 (3,222)
Intergovernmental 298,484 622,319 536,215 (86,104)
Charges for Services 3,178,889 3,178,889 3,149,076 (29,813)
Fines, Forfeits, and Penalties 3,440,389 3,440,389 3,412,827 (27,562)
Special Assessment - - 914 914
Investment Income 681,783 681,783 593,514 (88,269)
Rents and Royalties 265,916 265,916 279,004 13,088
Contributions 31,723 31,723 25,046 (6,677)
Reimbursed Expenditures 274 274 426 152
Other 228,300 228,300 159,477 (68,823)
Total Revenues 39,006,437 39,330,272 40,296,142 965,870
Expenditures
Current
General Government 6,456,091 8,073,515 6,187,469 (1,886,046)
Fiscal Services 3,480,169 3,518,998 3,411,717 (107,281)
Police 12,956,436 13,311,241 13,219,117 (92,124)
Fire 10,671,063 10,884,191 11,251,400 367,209
Planning and Development Services 2,532,244 2,697,844 2,281,747 (416,097)
Public Works 7,541,210 7,555,446 7,157,121 (398,325)
Capital Improvement Projects 738,769 910,490 715,707 (194,783)
Parks and Recreation 9,141,025 9,146,447 8,985,860 (160,587)
Information Services 3,284,938 3,501,200 3,366,764 (134,436)
Library 994,954 994,954 993,102 (1,852)
Reimbursed Administration (6,641,636) (6,662,559) (6,497,466) 165,093
Contributions 692,512 692,512 657,592 (34,920)
Other 488,000 173,000 173,637 637
Total Expenditures 52,335,775 54,797,279 51,903,767 (2,893,512)
Deficiency of Revenues Under Expenditures (13,329,338) (15,467,007) (11,607,625) 3,859,382
Other Financing Sources (Uses)
Sales of Capital Assets 10,000 10,000 10,981 981
Transfers In 11,166,898 12,201,898 11,591,668 (610,230)
Transfer Out (588,784) (956,096) (942,224) 13,872
Total Other Financing Sources 10,588,114 11,255,802 10,660,425 (595,377)
Net Change in Fund Balances (2,741,224) (4,211,205) (947,200) 3,264,005$
Fund Balances, October 1 12,932,589 12,932,589 12,932,589
Fund Balances, September 30 10,191,365$ 8,721,384$ 11,985,389$
Notes to Required Supplementary Information:
The City of College Station budgets using the modified accrual basis of accounting.
Budget and Actual
CITY OF COLLEGE STATION, TEXAS
Schedule of Revenues, Expenditures, and Changes in Fund Balances
General Fund
For the Fiscal Year Ended September 30, 2008
70
CITY OF COLLEGE STATION
SUPPLEMENTARY
INFORMATION
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 Occupancy Tax - to account for the receipt and expenditure of funds received by the City from the assessment of hotel and
motel occupancy tax. Usage of funds is restricted to the construction and maintenance of convention and civic facilities and to the
promotion of tourism and arts within the City.
Memorial Cemetery – to account for sales of plots (and options of plots) in the planned Aggie Field of Honor & Municipal Cemetery.
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.
Red Light Camera – to account for the receipt and expenditure of funds from the operation of red light cameras.
Northgate Tax Increment Financing District - to account for the receipt and expenditure of funds received by the City from the
creation of a tax increment financing district for the Northgate area.
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 & Recreation Projects - to account for the costs of new parks and improvements to existing parks made with funds provided
from the sale of general obligation bonds.
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 Endowment Fund - to account for principal trust amounts received and related interest income for the College
Station cemetery.
Memorial Cemetery Endowment Fund - to account for principal trust amounts received and related interest income for the
College Station Memorial cemetery.
71
72
CITY OF COLLEGE STATION, TEXAS
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2008
Special
Revenue
Funds
Capital
Projects Funds
Permanent
Funds Total
Assets
Equity in Cash and Cash Equivalents 8,408,117$ 12,923,114$ 1,182,547$ 22,513,778$
Equity in Investments 4,013,389 6,168,501 564,457 10,746,347
Receivables
Accrued Interest 50,493 80,328 7,315 138,136
Grants 428,270 --428,270
Accounts 423,456 188,682 29,150 641,288
Less Allowance for Uncollectible Accounts (57,293)(24,023)(4,906)(86,222)
Inventories --636 636
Total Assets 13,266,432$ 19,336,602$ 1,779,199$ 34,382,233$
Liabilities and Fund Balances
Liabilities
Accounts Payable 96,772$ 978,842$ -$ 1,075,614$
Retainage Payable 20,692 333,565 -354,257
Interfund Payables 200,000 --200,000
Accrued Liabilities 215,265 244 -215,509
Other Deferred Revenue 374,363 -23,032 397,395
Total Liabilities 907,092 1,312,651 23,032 2,242,775
Fund Balances
Reserved
Reserved for Encumbrances 833,331 7,074,585 -7,907,916
Reserved for Capital Projects -10,949,366 -10,949,366
Reserved for Perpetual care - nonexpendable --1,756,167 1,756,167
Unreserved 11,526,009 -11,526,009
Total Fund Balances 12,359,340 18,023,951 1,756,167 32,139,458
Total Liabilities and Fund Balances 13,266,432$ 19,336,602$ 1,779,199$ 34,382,233$
73
CITY OF COLLEGE STATION, TEXAS
Combining Balance Sheet
Nonmajor Governmental Funds - Special Revenue Funds
September 30, 2008
Community
Development
Convention
Center
Hotel
Occupancy
Tax
Memorial
Cemetery
Current Assets
Equity in Cash and Cash Equivalents 239,880$ 230,029$ 5,244,083$ 196,960$
Equity in Investments 114,500 109,798 2,503,122 94,014
Receivables
Accrued Interest -1,424 32,441 1,218
Grants 428,270 ---
Accounts --269,528 151,928
Less Allowance for Uncollectible Accounts --(57,293)-
Total Assets 782,650$ 341,251$ 7,991,881$ 444,120$
Liabilities and Fund Balances
Liabilities
Accounts Payable 38,272$ -$ -$ 13,410$
Retainage Payable ----
Interfund Payable --200,000 -
Accrued Liabilities 10,472 ---
Other Deferred Revenues --212,235 162,128
Total Liabilities 48,744 -412,235 175,538
Fund Balances
Reserved
Reserved for Encumbrances 624,807 -3,500 12,140
Unreserved
Undesignated 109,099 341,251 7,576,146 256,442
Total Fund Balances 733,906 341,251 7,579,646 268,582
Total Liabilities and Fund Balances 782,650$ 341,251$ 7,991,881$ 444,120$
74
Parks Escrow
Red Light
Camera
Northgate Tax
Increment
Financing
District
Wolf Pen
Creek Tax
Increment
Financing
District Total
1,129,992$ 261,043$ 36,748$ 1,069,382$ 8,408,117$
539,371 124,602 17,541 510,441 4,013,389
6,953 1,615 227 6,615 50,493
----428,270
-2,000 --423,456
----(57,293)
1,676,316$ 389,260$ 54,516$ 1,586,438$ 13,266,432$
45,090$ -$ -$ -$ 96,772$
20,692 ---20,692
----200,000
-204,793 --215,265
----374,363
65,782 204,793 --907,092
184,574 8,310 --833,331
1,425,960 176,157 54,516 1,586,438 11,526,009
1,610,534 184,467 54,516 1,586,438 12,359,340
1,676,316$ 389,260$ 54,516$ 1,586,438$ 13,266,432$
75
CITY OF COLLEGE STATION, TEXAS
Combining Balance Sheet
Nonmajor Governmental Funds- Capital Projects Funds
September 30, 2008
Business
Park
Drainage
Projects
General
Government
Projects
Parks and
Recreation
Projects Total
Assets
Equity in Cash and Cash Equivalents 570,026$ 2,025,588$ 9,024,455$ 1,303,045$ 12,923,114$
Equity in Investments 272,087 966,860 4,307,581 621,973 6,168,501
Receivables
Accrued Interest 3,527 12,599 56,117 8,085 80,328
Accounts -163,667 19,803 5,212 188,682
Less Allowance for Uncollectible Accounts -(24,023)--(24,023)
Total Assets 845,640$ 3,144,691$ 13,407,956$ 1,938,315$ 19,336,602$
Liabilities and Fund Balances
Liabilities
Accounts Payable -$ 81,637$ 839,681$ 57,524$ 978,842$
Retainage Payable -8,857 259,417 65,291 333,565
Accrued Liabilities ---244 244
Total Liabilities -90,494 1,099,098 123,059 1,312,651
Fund Balances
Reserved
Reserved for Encumbrances 23,945 345,612 6,597,215 107,813 7,074,585
Reserved for Capital Projects 821,695 2,708,585 5,711,643 1,707,443 10,949,366
Total Fund Balances 845,640 3,054,197 12,308,858 1,815,256 18,023,951
Total Liabilities and Fund Balances 845,640$ 3,144,691$ 13,407,956$ 1,938,315$ 19,336,602$
76
CITY OF COLLEGE STATION, TEXAS
Combining Balance Sheet
Nonmajor Governmental Funds - Permanent Funds
September 30, 2008
Cemetery
Endowment
Fund
Memorial
Cemetery
Endowment
Fund Total
Current Assets
Equity in Cash and Cash Equivalents 1,047,079$ 135,468$ 1,182,547$
Equity in Investments 499,795 64,662 564,457
Receivables
Accrued Interest 6,477 838 7,315
Accounts 6,118 23,032 29,150
Less Allowance for Doubtful Accounts (4,906)-(4,906)
Inventories 636 -636
Total Assets 1,555,199$ 224,000$ 1,779,199$
Liabilities and Fund Balances
Liabilities
Other Deferred Revenue -$ 23,032$ 23,032$
Total Liabilities -23,032 23,032
Fund Balances
Reserved
Reserved for Perpetual Care 1,555,199 200,968 1,756,167
Total Fund Balances 1,555,199 200,968 1,756,167
Total Liabilities and Fund Balances 1,555,199$ 224,000$ 1,779,199$
77
78
Special
Revenue
Funds
Capital
Projects Funds
Permanent
Funds Total
Revenues
Taxes 4,591,195$ -$ -$ 4,591,195$
Charges for Services 299,150 77,415 264,506 641,071
Intergovernmental 1,170,197 - - 1,170,197
Special Assessment - 1,254,611 - 1,254,611
Fines, Forfeits and Penalties 385,486 - - 385,486
Investment Income 416,287 670,212 62,106 1,148,605
Contributions - - 2,167 2,167
Reimbursed Expenditures - 6,680 - 6,680
Other 882,960 3,036 43 886,039
Total Revenues 7,745,275 2,011,954 328,822 10,086,051
Expenditures
Current
General Government 1,091,110 1,911 - 1,093,021
Fiscal Services 150,470 4,790 - 155,260
Public Works 25,069 253 - 25,322
Parks and Recreation 23,171 60,250 1,917 85,338
Reimbursed Administrative 549,839 1,369,598 - 1,919,437
Contributions 1,494,000 - - 1,494,000
Other 785 29,278 638 30,701
Capital Outlay 613,957 11,043,086 - 11,657,043
Debt Issuance Cost - 43,987 - 43,987
Total Expenditures 3,948,401 12,553,153 2,555 16,504,109
Excess (Deficiency) of Revenues Over (Under)
Expenditures 3,796,874 (10,541,199) 326,267 (6,418,058)
Other Financing Sources (Uses)
Issuance of Debt - 8,737,840 - 8,737,840
Transfers In - 671,020 - 671,020
Transfers Out (1,598,874) (500,000) - (2,098,874)
Total Other Financing Sources (Uses) (1,598,874) 8,908,860 - 7,309,986
Net Change in Fund Balances 2,198,000 (1,632,339) 326,267 891,928
Fund Balances, October 1 10,161,340 19,656,290 1,429,900 31,247,530
Fund Balances, September 30 12,359,340$ 18,023,951$ 1,756,167$ 32,139,458$
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, 2008
79
Community
Development
Convention
Center
Hotel
Occupancy Tax
Memorial
Cemetery
Revenues
Taxes -$ -$ 3,585,512$ -$
Charges for Services - - - 299,150
Intergovernmental 1,170,197 - - -
Fines, Forfeits and Penalties ----
Investment Income - 13,389 284,054 1,923
Other 281,095 - 2,025 -
Total Revenues 1,451,292 13,389 3,871,591 301,073
Expenditures
Current
General Governmnet 1,077,107 - 14,003 -
Fiscal Services ----
Parks and Recreation - - - 23,171
Public Works ----
Reimbursed Administrative 111,343 - 428,696 9,800
Contributions - - 1,494,000 -
Other ----
Capital Outlay - 326 - -
Total Expenditures 1,188,450 326 1,936,699 32,971
Excess of Revenues Over Expenditures 262,842 13,063 1,934,892 268,102
Other Financing Uses
Operating Transfer Out (528,166) - - -
Total Other Financing Uses (528,166) - - -
Net Changes in Fund Balances (265,324) 13,063 1,934,892 268,102
Fund Balances, October 1 999,230 328,188 5,644,754 480
Fund Balances, September 30 733,906$ 341,251$ 7,579,646$ 268,582$
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, 2008
80
Parks Escrow
Red Light
Camera
Northgate Tax
Increment
Financing
District
Wolf Pen Creek
Tax Increment
Financing
District Total
-$ -$ 53,837$ 951,846$ 4,591,195$
- - - - 299,150
- - - - 1,170,197
- 385,486 - - 385,486
63,096 2,753 679 50,393 416,287
599,840 - - - 882,960
662,936 388,239 54,516 1,002,239 7,745,275
- - - - 1,091,110
- 150,470 - - 150,470
- - - - 23,171
- 25,069 - - 25,069
- - - - 549,839
- - - - 1,494,000
785 - - - 785
610,131 - - 3,500 613,957
610,916 175,539 - 3,500 3,948,401
52,020 212,700 54,516 998,739 3,796,874
- (28,233) - (1,042,475) (1,598,874)
- (28,233) - (1,042,475) (1,598,874)
52,020 184,467 54,516 (43,736) 2,198,000
1,558,514 - - 1,630,174 10,161,340
1,610,534$ 184,467$ 54,516$ 1,586,438$ 12,359,340$
81
Business
Park
Drainage
Projects
General
Government
Projects
Parks and
Recreation
Projects Total
Revenues
Charges for Services -$ -$ -$ 77,415$ 77,415$
Special Assessment - 1,254,611 - - 1,254,611
Investment Income 37,492 129,072 437,755 65,893 670,212
Reimbursed Expenditures - 6,680 - - 6,680
Other - 648 2,388 - 3,036
Total Revenues 37,492 1,391,011 440,143 143,308 2,011,954
Expenditures
Current
General Government - - 1,911 - 1,911
Fiscal Services - 449 2,641 1,700 4,790
Public Works - 253 - - 253
Parks and Recreation - - 60,250 - 60,250
Reimbursed Administrative - 1,177,531 170,647 21,420 1,369,598
Other - 10,098 19,180 - 29,278
Capital Outlay 81 643,009 7,696,730 2,703,266 11,043,086
Debt Issuance Cost - - 38,141 5,846 43,987
Total Expenditures 81 1,831,340 7,989,500 2,732,232 12,553,153
Excess (Deficiency) of Revenues Over (Under)
Expenditures 37,411 (440,329) (7,549,357) (2,588,924) (10,541,199)
Other Financing Sources (Uses)
Issuance of Debt - - 7,257,310 1,480,530 8,737,840
Transfers In - - 91,417 579,603 671,020
Transfers Out (500,000) - - - (500,000)
Total Other Financing Sources (Uses) (500,000) - 7,348,727 2,060,133 8,908,860
Net Change in Fund Balances (462,589) (440,329) (200,630) (528,791) (1,632,339)
Fund Balances, October 1 1,308,229 3,494,526 12,509,488 2,344,047 19,656,290
Fund Balances, September 30 845,640$ 3,054,197$ 12,308,858$ 1,815,256$ 18,023,951$
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, 2008
82
Cemetery
Endowment
Fund
Memorial
Cemetery
Endowment
Fund Total
Revenues
Sale of Cemetery Lots 64,965$ 199,541$ 264,506$
Investment Income 60,679 1,427 62,106
Contributions 2,167 - 2,167
Other 43 - 43
Total Revenues 127,854 200,968 328,822
Operating Expenses
Maintenance 1,917 - 1,917
Other 638 - 638
Total Operating Expenses 2,555 - 2,555
Net Income 125,299 200,968 326,267
Fund Balances, October 1 1,429,900 - 1,429,900
Fund Balances, September 30 1,555,199$ 200,968$ 1,756,167$
CITY OF COLLEGE STATION, TEXAS
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds - Permanent Funds
For the Fiscal Year Ended September 30, 2008
83
Original Budget Final Budget Actual
Variance
Over (Under)
Revenues
Intergovernmental 3,628,748$ 3,628,748$ 1,170,197$ (2,458,551)$
Other 10,000 10,000 281,095 271,095
Total Revenues 3,638,748 3,638,748 1,451,292 (2,187,456)
Expenditures
Current
General Government 3,730,481 3,731,645 1,077,107 (2,654,538)
Reimbursed Administrative 148,358 148,838 111,343 (37,495)
Total Expenditures 3,878,839 3,880,483 1,188,450 (2,692,033)
Excess (Deficiency) of Revenues Over (Under) Expenditures (240,091) (241,735) 262,842 504,577
Other Financing Uses
Operating Transfer Out - - (528,166) (528,166)
Total Other Financing Uses - - (528,166) (528,166)
Net Changes in Fund Balances (240,091) (241,735) (265,324) (23,589)$
Fund Balances, October 1 999,230 999,230 999,230
Fund Balances, September 30 759,139$ 757,495$ 733,906$
For the Fiscal Year Ended September 30, 2008
CITY OF COLLEGE STATION, TEXAS
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual
Community Development Fund
84
Original Budget Final Budget Actual
Variance
Over (Under)
Revenues
Investment Income 6,000$ 6,000$ 13,389$ 7,389$
Total Revenues 6,000 6,000 13,389 7,389
Expenditures
Capital Outlay - - 326 326
Total Expenditures - - 326 326
Net Changes in Fund Balances 6,000 6,000 13,063 7,063$
Fund Balances, October 1 328,188 328,188 328,188
Fund Balances, September 30 334,188$ 334,188$ 341,251$
For the Fiscal Year Ended September 30, 2008
CITY OF COLLEGE STATION, TEXAS
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
Convention Center Fund
85
Original Budget Final Budget Actual
Variance Over
(Under)
Revenues
Taxes 3,080,000$ 3,080,000$ 3,585,512$ 505,512$
Investment Income 227,325 227,325 284,054 56,729
Other - - 2,025 2,025
Total Revenues 3,307,325 3,307,325 3,871,591 564,266
Expenditures
Current
General Government 1,509,761 1,509,761 14,003 (1,495,758)
Reimbursed Administrative 452,751 452,751 428,696 (24,055)
Contributions 1,485,000 1,497,500 1,494,000 (3,500)
Capital Outlay 142,000 142,000 - (142,000)
Total Expenditures 3,589,512 3,602,012 1,936,699 (1,665,313)
Excess (Deficiency) of Revenues Over (Under) Expenditures (282,187) (294,687) 1,934,892 2,229,579
Other Financing Uses
Operating Transfer Out (1,840,000) (1,840,000) - 1,840,000
Total Other Financing Uses (1,840,000) (1,840,000) - 1,840,000
Net Changes in Fund Balances (2,122,187) (2,134,687) 1,934,892 4,069,579$
Fund Balances, October 1 5,644,754 5,644,754 5,644,754
Fund Balances, September 30 3,522,567$ 3,510,067$ 7,579,646$
For the Fiscal Year Ended September 30, 2008
CITY OF COLLEGE STATION, TEXAS
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
Hotel Occupancy Tax Fund
86
Original Budget Final Budget Actual
Variance
Over (Under)
Revenues
Charges for Services 1,385,000$ 1,385,000$ 299,150$ (1,085,850)$
Investment Income - - 1,923 1,923
Total Revenues 1,385,000 1,385,000 301,073 (1,083,927)
Expenditures
Current
Parks and Recreation 75,000 75,000 23,171 (51,829)
Reimbursed Administrative 9,800 9,800 9,800 -
Total Expenditures 84,800 84,800 32,971 (51,829)
Net Changes in Fund Balances 1,300,200 1,300,200 268,102 (1,032,098)$
Fund Balances, October 1 480 480 480
Fund Balances, September 30 1,300,680$ 1,300,680$ 268,582$
For the Fiscal Year Ended September 30, 2008
CITY OF COLLEGE STATION, TEXAS
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
Memorial Cemetery Fund
87
Original Budget Final Budget Actual
Variance
Over (Under)
Revenues
Investment Income 20,000$ 20,000$ 63,096$ 43,096$
Other 290,000 290,000 599,840 309,840
Total Revenues 310,000 310,000 662,936 352,936
Expenditures
Current
Other - - 785 785
Capital Outlay 710,963 788,682 610,131 (178,551)
Total Expenditures 710,963 788,682 610,916 (177,766)
Net Changes in Fund Balances (400,963) (478,682) 52,020 530,702$
Fund Balances, October 1 1,558,514 1,558,514 1,558,514
Fund Balances, September 30 1,157,551$ 1,079,832$ 1,610,534$
For the Fiscal Year Ended September 30, 2008
CITY OF COLLEGE STATION, TEXAS
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
Parks Escrow Fund
88
Original Budget Final Budget Actual
Variance
Over (Under)
Revenues
Fines, Forfeits and Penalties 654,687$ 654,687$ 385,486$ (269,201)$
Investment Income 20,000 20,000 2,753 (17,247)
Total Revenues 674,687 674,687 388,239 (286,448)
Expenditures
Current
Fiscal Services 223,750 223,750 150,470 (73,280)
Public Works - - 25,069 25,069
Total Expenditures 223,750 223,750 175,539 (48,211)
Excess of Revenues Over Expenditures 450,937 450,937 212,700 (238,237)
Other Financing Uses
Operating Transfer Out - (35,000) (28,233) 6,767
Total Other Financing Uses - (35,000) (28,233) 6,767
Net Changes in Fund Balances 450,937 415,937 184,467 (231,470)$
Fund Balances, October 1 - - -
Fund Balances, September 30 450,937$ 415,937$ 184,467$
CITY OF COLLEGE STATION, TEXAS
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
Red Light Camera Fund
For the Fiscal Year Ended September 30, 2008
89
Original Budget Final Budget Actual
Variance
Over (Under)
Revenues
Taxes 55,227$ 55,227$ 53,837$ (1,390)$
Investment Income 1,105 1,105 679 (426)
Total Revenues 56,332 56,332 54,516 (1,816)
Net Changes in Fund Balances 56,332 56,332 54,516 (1,816)$
Fund Balances, October 1 - - -
Fund Balances, September 30 56,332$ 56,332$ 54,516$
For the Fiscal Year Ended September 30, 2008
CITY OF COLLEGE STATION, TEXAS
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
Northgate Tax Increment Financing District Fund
90
Original Budget Final Budget Actual
Variance
Over (Under)
Revenues
Taxes 839,000$ 839,000$ 951,846$ 112,846$
Investment Income 10,000 10,000 50,393 40,393
Total Revenues 849,000 849,000 1,002,239 153,239
Expenditures
Capital Outlay 1,199,615 1,199,615 3,500 (1,196,115)
Total Expenditures 1,199,615 1,199,615 3,500 (1,196,115)
Excess (Deficiency) of Revenues Over (Under) Expenditures (350,615) (350,615) 998,739 1,349,354
Other Financing Uses
Operating Transfer Out (1,042,475) (1,042,475) (1,042,475) -
Total Other Financing Uses (1,042,475) (1,042,475) (1,042,475) -
Net Changes in Fund Balances (1,393,090) (1,393,090) (43,736) 1,349,354$
Fund Balances, October 1 1,630,174 1,630,174 1,630,174
Fund Balances, September 30 237,084$ 237,084$ 1,586,438$
For the Fiscal Year Ended September 30, 2008
CITY OF COLLEGE STATION, TEXAS
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
Wolf Pen Creek Tax Increment Financing District Fund
91
Original Budget Final Budget Actual
Variance Over
(Under)
Revenues
Investment Income 33,000$ 33,000$ 37,492$ 4,492$
Total Revenues 33,000 33,000 37,492 4,492
Expenditures
Capital Outlay - - 81 81
Total Expenditures - - 81 81
Excess of Revenues Over Expenditures 33,000 33,000 37,411 4,411
Other Financing Uses
Transfers Out (500,000) (500,000) (500,000) -
Total Other Financing Uses (500,000) (500,000) (500,000) -
Net Change in Fund Balances (467,000) (467,000) (462,589) 4,411$
Fund Balances, October 1 1,308,229 1,308,229 1,308,229
Fund Balances, September 30 841,229$ 841,229$ 845,640$
CITY OF COLLEGE STATION, TEXAS
For the Fiscal Year Ended September 30, 2008
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
Business Park Fund
92
Original Budget Final Budget Actual
Variance Over
(Under)
Revenues
Special Assessment 1,236,800$ 1,236,800$ 1,254,611$ 17,811$
Investment Income 60,000 60,000 129,072 69,072
Reimbursed Expenditures - - 6,680 6,680
Other - - 648 648
Total Revenues 1,296,800 1,296,800 1,391,011 94,211
Expenditures
Current
Fiscal Services - - 449 449
Public Works 7,200 7,200 253 (6,947)
Reimbursed Administrative 1,202,539 1,226,664 1,177,531 (49,133)
Other - - 10,098 10,098
Capital Outlay 855,000 855,000 643,009 (211,991)
Total Expenditures 2,064,739 2,088,864 1,831,340 (257,524)
Net Change in Fund Balances (767,939) (792,064) (440,329) 351,735$
Fund Balances, October 1 3,494,526 3,494,526 3,494,526
Fund Balances, September 30 2,726,587$ 2,702,462$ 3,054,197$
For the Fiscal Year Ended September 30, 2008
CITY OF COLLEGE STATION, TEXAS
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
Drainage Projects Fund
93
Original Budget Final Budget Actual
Variance Over
(Under)
Revenues
Investment Income 154,000$ 154,000$ 437,755$ 283,755$
Other - - 2,388 2,388
Total Revenues 154,000 154,000 440,143 286,143
Expenditures
Current
General Government - - 1,911 1,911
Fiscal Services - - 2,641 2,641
Parks and Recreation - - 60,250 60,250
Reimbursed Administrative 170,647 170,647 170,647 -
Other 20,000 20,000 19,180 (820)
Capital Outlay 5,527,076 7,633,076 7,696,730 63,654
Debt Issuance Cost 66,000 66,000 38,141 (27,859)
Total Expenditures 5,783,723 7,889,723 7,989,500 99,777
Deficiency of Revenues Under Expenditures (5,629,723) (7,735,723) (7,549,357) 186,366
Other Financing Sources
Issuance of Debt 8,365,000 8,365,000 7,257,310 (1,107,690)
Transfers In 23,552 99,552 91,417 (8,135)
Total Other Financing Sources 8,388,552 8,464,552 7,348,727 (1,115,825)
Net Change in Fund Balances 2,758,829 728,829 (200,630) (929,459)$
Fund Balances, October 1 12,509,488 12,509,488 12,509,488
Fund Balances, September 30 15,268,317$ 13,238,317$ 12,308,858$
For the Fiscal Year Ended September 30, 2008
CITY OF COLLEGE STATION, TEXAS
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
General Government Projects Fund
94
Original Budget Final Budget Actual
Variance Over
(Under)
Revenues
Charges for Services 72,500$ 72,500$ 77,415$ 4,915$
Investment Income 21,000 21,000 65,893 44,893
Total Revenues 93,500 93,500 143,308 49,808
Expenditures
Current
Fiscal Services - - 1,700 1,700
Reimbursed Administrative 21,420 21,420 21,420 -
Capital Outlay 1,430,000 1,788,500 2,703,266 914,766
Debt Issuance Cost 11,500 11,500 5,846 (5,654)
Total Expenditures 1,462,920 1,821,420 2,732,232 910,812
Deficiency of Revenues Under Expenditures (1,369,420) (1,727,920) (2,588,924) (861,004)
Other Financing Sources
Issuance of Debt 1,215,000 1,215,000 1,480,530 265,530
Transfers In 225,000 225,000 579,603 354,603
Total Other Financing Sources 1,440,000 1,440,000 2,060,133 620,133
Net Change in Fund Balances 70,580 (287,920) (528,791) (240,871)$
Fund Balances, October 1 2,344,047 2,344,047 2,344,047
Fund Balances, September 30 2,414,627$ 2,056,127$ 1,815,256$
For the Fiscal Year Ended September 30, 2008
CITY OF COLLEGE STATION, TEXAS
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
Parks and Recreation Projects Fund
95
Original Budget Final Budget Actual
Variance Over
(Under)
Revenues
Intergovernmental -$ -$ 1,545$ 1,545$
Investment Income 257,000 257,000 793,773 536,773
Reimbursed Expenditures - - 38,932 38,932
Other - - 915 915
Total Revenues 257,000 257,000 835,165 578,165
Expenditures
Current
General Government - - 39,172 39,172
Fiscal Services - - 6,709 6,709
Reimbursed Administration 805,667 805,667 805,667 -
Capital Outlay 3,114,072 8,678,419 7,881,279 (797,140)
Debt Service
Fiscal Charges 25,000 25,000 15,588 (9,412)
Intergovernmental - 1,047,287 881,604 (165,683)
Total Expenditures 3,944,739 10,556,373 9,630,019 (926,354)
Deficiency of Revenues Under Expenditures (3,687,739) (10,299,373) (8,794,854) 1,504,519
Other Financing Sources
Insurance of Debt 5,604,000 5,604,000 11,232,160 5,628,160
Transfers In - - 143,563 143,563
Total Other Financing Sources 5,604,000 5,604,000 11,375,723 5,771,723
Net Change in Fund Balances 1,916,261 (4,695,373) 2,580,869 7,276,242$
Fund Balances, October 1 21,807,526 21,807,526 21,807,526
Fund Balances, September 30 23,723,787$ 17,112,153$ 24,388,395$
For the Fiscal Year Ended September 30, 2008
CITY OF COLLEGE STATION, TEXAS
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual
Streets Projects Fund
96
Original Budget Final Budget Actual
Variance Over
(Under)
Revenues
Taxes 11,131,227$ 11,131,227$ 11,012,440$ (118,787)$
Investment Income 275,000 275,000 350,744 75,744
Total Revenues 11,406,227 11,406,227 11,363,184 (43,043)
Expenditures
Debt Service
Principal Retirement 8,875,000 8,875,000 8,530,000 (345,000)
Interest Payments 4,237,740 4,237,740 3,892,490 (345,250)
Fiscal Charges 16,000 16,000 11,221 (4,779)
Total Expenditures 13,128,740 13,128,740 12,433,711 (695,029)
Deficiency of Revenues Under Expenditures (1,722,513) (1,722,513) (1,070,527) 651,986
Other Financing Sources
Transfers In 2,112,411 2,112,411 1,422,163 (690,248)
Total Other Financing Sources 2,112,411 2,112,411 1,422,163 (690,248)
Net Change in Fund Balances 389,898 389,898 351,636 (38,262)$
Fund Balances, October 1 3,466,058 3,466,058 3,466,058
Fund Balances, September 30 3,855,956$ 3,855,956$ 3,817,694$
For the Fiscal Year Ended September 30, 2008
CITY OF COLLEGE STATION, TEXAS
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual
Debt Service Fund
97
98
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.
99
Sanitation
Northgate
Parking Garage
Total Enterprise
Funds
Current Assets
Equity in Cash and Cash Equivalents 185,552$ 778,339$ 963,891$
Equity in Investments 88,568 371,519 460,087
Receivables
Accrued Interest 1,440 4,766 6,206
Accounts 954,409 58,684 1,013,093
Less: Allowance for Uncollectible Accounts (115,336) (195) (115,531)
Intergovernmental Receivable 17,792 - 17,792
Inventories 39,812 - 39,812
Total Current Assets 1,172,237 1,213,113 2,385,350
Noncurrent Assets
Equity in Joint Venture 11,496,186 - 11,496,186
Property and Equipment
Buildings - 5,743,755 5,743,755
Machinery and Equipment 338,043 250,190 588,233
Accumulated Depreciation (338,043) (1,130,395) (1,468,438)
Construction in Progress - 4,330 4,330
Land - 690,707 690,707
Total Property and Equipment - 5,558,587 5,558,587
Total Noncurrent Assets 11,496,186 5,558,587 17,054,773
Total Assets 12,668,423 6,771,700 19,440,123
Liabilities
Current Liabilities
Accounts Payable 68,869 2,303 71,172
Accrued Liabilities 123,420 17,738 141,158
Other Deferred Revenues 17,792 81,574 99,366
Refundable Deposits - 9,170 9,170
Total Current Liablities 210,081 110,785 320,866
Noncurrent Liabilities
Accrued Vacation 57,765 2,462 60,227
Total Noncurrent Liabilites 57,765 2,462 60,227
Total Liabilities 267,846 113,247 381,093
Net Assets
Invested in Capital Assets, net of related debt - 5,558,587 5,558,587
Unrestricted 12,400,577 1,099,866 13,500,443
Total Net Assets 12,400,577$ 6,658,453$ 19,059,030$
CITY OF COLLEGE STATION, TEXAS
Combining Statement of Net Assets
Nonmajor Enterprise Funds
September 30, 2008
100
Sanitation
Northgate
Parking Garage
Total Enterprise
Funds
Operating Revenues
Charges for Services 6,694,054$ 673,768$ 7,367,822$
Other 86,482 - 86,482
Total Operating Revenues 6,780,536 673,768 7,454,304
Operating Expenses
Salaries and Benefits 1,742,471 281,460 2,023,931
Supplies 564,229 18,131 582,360
Maintenance 529,180 22,616 551,796
Purchased Professional Services 425,744 82,818 508,562
Purchased Property Services 1,590,765 47,227 1,637,992
Other Purchased Services 668,379 26,201 694,580
Reimbursed Administrative 621,732 33,692 655,424
Depreciation 8,690 157,805 166,495
Other (8,895) 50 (8,845)
Total Operating Expenses 6,142,295 670,000 6,812,295
Operating Income 638,241 3,768 642,009
Nonoperating Revenues (Expenses)
Investment Income 16,512 43,318 59,830
Reimbursed Expenses 85 50 135
Earnings in Joint Venture 2,848,177 - 2,848,177
Other, Net (38,893) 3,293 (35,600)
Total Nonoperating Revenues 2,825,881 46,661 2,872,542
Income Before Capital Contributions and Transfers 3,464,122 50,429 3,514,551
Capital Contributions and Transfers
Transfers Out (515,500) - (515,500)
Total Capital Contributions and Transfers (515,500) - (515,500)
Change in Net Assets 2,948,622 50,429 2,999,051
Beginning Net Assets 9,451,955 6,608,024 16,059,979
Ending Net Assets 12,400,577$ 6,658,453$ 19,059,030$
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, 2008
101
Northgate
Parking
Sanitation Garage Total
Cash Flows from Operating Activities:
Cash Received from Customers 6,690,237$ 632,841$ 7,323,078$
Cash Payments to Suppliers for Goods and Services (4,408,423) (232,612) (4,641,035)
Cash Payments to Employees for Services (1,722,468) (279,641) (2,002,109)
Customer Deposits Returned - (1,880) (1,880)
Cash Received for Reimbursed Expenses 85 50 135
Cash Received for Miscellaneous Revenues - 3,293 3,293
Cash Paid for Miscellaneous Expenses (41,076) - (41,076)
Net Cash Provided by Operating Activities 518,355 122,051 640,406
Cash Flows from Noncapital Financing Activities:
Transfers Out to Other Funds (475,500) - (475,500)
Net Cash Used by Noncapital Financing Activities (475,500) - (475,500)
Cash Flows from Capital and Related Financing Activities:
Acquisition and Construction of Capital Assets - (79,224) (79,224)
Net Cash Used by Capital and Related Financing Activities - (79,224) (79,224)
Cash Flows from Investing Activities:
Purchase of Investments (200,168) (1,089,543) (1,289,711)
Proceeds from Sale and Maturities of
Investment Securities 226,268 1,154,381 1,380,649
Investment Income 16,137 42,486 58,623
Net Cash Provided by Investing Activities 42,237 107,324 149,561
Net Increase in Cash and Cash Equivalents 85,092 150,151 235,243
Cash and Cash Equivalents, Oct. 1 100,460 628,188 728,648
Cash and Cash Equivalents, Sept. 30 185,552$ 778,339$ 963,891$
Reconciliation of Operating Income to Net Cash
Provided by Operating Activities:
Operating Income 638,241$ 3,768$ 642,009$
Adjustment to Reconcile Operating Income to Net
Cash Provided by Operating Activities:
Depreciation, Bad Debt Expense, Inventory Loss 8,690 157,805 166,495
Provision for Uncollectible Accounts 16,290 25 16,315
Miscellaneous Nonoperating Revenues 85 3,343 3,428
Miscellaneous Nonoperating Expenses (41,076) - (41,076)
Changes in Assets and Liabilities:
Change in Accounts Receivable (108,091) (27,896) (135,987)
Change in Deferred Revenues 17,792 (13,031) 4,761
Change in Inventory (34,738) - (34,738)
Change in Accounts Payable 5,225 416 5,641
Change in Accrued Liabilities 4,434 (1,098) 3,336
Change in Refundable Deposits - (1,880) (1,880)
Change in Accrued Vacation 11,503 599 12,102
Total Adjustments (119,886) 118,283 (1,603)
Net Cash Provided by Operating Activities 518,355$ 122,051$ 640,406$
CITY OF COLLEGE STATION, TEXAS
Combining Statement of Cash Flows
Nonmajor Enterprise Funds
For the Fiscal Year Ended September 30, 2008
102
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 Customer Service - to account for the billing and collection activities relating to the City’s electric, water,
and sewer utilities and residential and commercial garbage collection.
Workers' Compensation - to account for self-insurance activity relating to administration of the City's workers'
compensation plan.
103
CITY OF COLLEGE STATION, TEXAS
Combining Statement of Net Assets
Internal Service Funds
September 30, 2008
Communication
Services
Employee
Benefits
Equipment
Replacement
Fleet
Maintenance
Current Assets
Equity in Cash and Cash Equivalents 50,190$ 3,998,977$ 2,909,544$ 21,631$
Equity in Investments 23,957 1,908,804 1,388,793 10,325
Receivables
Accrued Interest 312 24,739 17,999 (711)
Accounts -4,676 --
Other ----
Less Allowance for Uncollectible Accounts ----
Intergovernmental receivable ----
Inventories ---99,508
Total Current Assets 74,459 5,937,196 4,316,336 130,753
Property and Equipment
Buildings ---786,525
Machinery and Equipment 1,113,293 -24,583,663 259,884
Accumulated Depreciation (1,011,918)-(17,083,350)(498,578)
Construction in Progress --892,738 -
Total Property and Equipment 101,375 -8,393,051 547,831
Total Assets 175,834$ 5,937,196$ 12,709,387$ 678,584$
Liabilities and Fund Equity
Current Liabilities
Accounts Payable 7,760$ 144,305$ 30,799$ 15,374$
Claims Payable -565,189 --
Accrued Liabilities 15,587 --29,933
Deferred Revenue ----
Total Current Liabilities 23,347 709,494 30,799 45,307
Noncurrent Liabilities
Accrued Vacation 11,286 --39,641
Total Noncurrent Liabilities 11,286 --39,641
Total Liabilities 34,633 709,494 30,799 84,948
Net Assets
Invested in Capital Assets 101,375 -8,393,051 547,831
Unreserved Retained Earnings (Deficits)39,826 5,227,702 4,285,537 45,805
Total Net Assets 141,201$ 5,227,702$ 12,678,588$ 593,636$
104
Print/Mail
Services
Property and
Casualty Unemployment
Utility
Customer
Service
Workers'
Compensation Total
-$ 925,045$ 158,640$ 112,096$ 1,049,965$ 9,226,088$
-441,545 75,723 53,506 501,172 4,403,825
-5,723 981 691 6,495 56,229
-25,000 -38,372 -68,048
---15,003 -15,003
---(24,811)-(24,811)
-8,053 ---8,053
-----99,508
-1,405,366 235,344 194,857 1,557,632 13,851,943
-----786,525
---1,433,762 -27,390,602
---(925,790)-(19,519,636)
-----892,738
---507,972 -9,550,229
-$ 1,405,366$ 235,344$ 702,829$ 1,557,632$ 23,402,172$
-$ 28,950$ 1,261$ 21,735$ 189$ 250,373$
-373,830 --466,936 1,405,955
---51,432 -96,952
-8,053 ---8,053
-410,833 1,261 73,167 467,125 1,761,333
---59,419 -110,346
---59,419 -110,346
- 410,833 1,261 132,586 467,125 1,871,679
---507,972 -9,550,229
-994,533 234,083 62,271 1,090,507 11,980,264
-$ 994,533$ 234,083$ 570,243$ 1,090,507$ 21,530,493$
105
Communication
Services
Employee
Benefits
Equipment
Replacement
Fleet
Maintenance
Operating Revenues
Charges for Services 784,630$ -$ 3,329,940$ 1,744,865$
Premiums - 5,987,246 - -
Other - 39,098 - -
Total Operating Revenues 784,630 6,026,344 3,329,940 1,744,865
Operating Expenses
Salaries and Benefits 404,408 - - 763,061
Supplies 53,727 - 10,325 758,559
Maintenance 115,408 - 21,132 22,890
Purchased Professional Services 2,770 3,008 - 160
Purchased Property Services 20,124 - - 17,146
Other Purchased Services 37,578 202 1,012 33,426
Claims - 4,598,807 - -
Administration Fees - 497,773 - -
Contributions - - 34,534 -
Premiums - 599,607 - -
Reimbursed Administrative 215,391 109,414 - 166,930
Depreciation 15,387 - 2,166,758 28,424
Other - 2,842 - 2,264
Total Operating Expenses 864,793 5,811,653 2,233,761 1,792,860
Operating Income (Loss) (80,163) 214,691 1,096,179 (47,995)
Nonoperating Revenues (Expenses)
Investment Income 3,790 236,927 159,907 (2,521)
Reimbursed Expenses 12,462 - - -
Other, Net 102 14 238,769 36
Total Nonoperating Revenues (Expenses) 16,354 236,941 398,676 (2,485)
Income (Loss) Before Operating Transfers (63,809) 451,632 1,494,855 (50,480)
Transfers
Transfers In - - - -
Transfers Out - - (3,345,029) -
Total Operating Transfers - - (3,345,029) -
Change in Net Assets (63,809) 451,632 (1,850,174) (50,480)
Beginning Net Assets 205,010 4,776,070 14,528,762 644,116
Ending Net Assets 141,201$ 5,227,702$ 12,678,588$ 593,636$
CITY OF COLLEGE STATION, TEXAS
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets
Internal Service Funds
For the Fiscal Year Ended September 30, 2008
106
Print/Mail
Property and
Casualty Unemployment
Utility
Customer
Service
Workers'
Compensation Total
-$ -$ -$ 2,320,400$ -$ 8,179,835$
- 943,200 30,847 - 848,619 7,809,912
632 - - 213,825 4,172 257,727
632 943,200 30,847 2,534,225 852,791 16,247,474
- - - 1,365,181 - 2,532,650
- 51 - 63,969 28,500 915,131
- - - 45,701 - 205,131
- - - 59,156 12,000 77,094
- - - 34,195 - 71,465
- - - 565,924 - 638,142
- 246,130 8,405 - 146,486 4,999,828
- 51,974 - - 50,000 599,747
- - - - - 34,534
- 247,287 - - 130,622 977,516
- 52,223 - 442,553 52,223 1,038,734
- - - 55,339 - 2,265,908
- 62 - 9,891 - 15,059
- 597,727 8,405 2,641,909 419,831 14,370,939
632 345,473 22,442 (107,684) 432,960 1,876,535
- 39,263 8,852 7,826 52,990 507,034
- 8,286 - - - 20,748
- 103,340 - (101) - 342,160
- 150,889 8,852 7,725 52,990 869,942
632 496,362 31,294 (99,959) 485,950 2,746,477
116,878 - - - - 116,878
- - - (37,293) - (3,382,322)
116,878 - - (37,293) - (3,265,444)
117,510 496,362 31,294 (137,252) 485,950 (518,967)
(117,510) 498,171 202,789 707,495 604,557 22,049,460
-$ 994,533$ 234,083$ 570,243$ 1,090,507$ 21,530,493$
107
CITY OF COLLEGE STATION, TEXAS
Combining Statement of Cash Flows
Internal Service Funds
For the Fiscal Year Ended September 30, 2008
Communication Employee Equipment Fleet Print/Mail
Services Benefits Replacement Maintenance Services
Cash Flows from Operating Activities:
Cash Received from Customers 784,630$ 6,023,953$ 3,329,940$ 1,744,865$ 632$
Cash Payments to Suppliers for Goods and Services (496,174) (5,502,719) (474,648) (1,028,282) (20,485)
Cash Payments to Employees for Services (404,016) - - (777,804) (29,951)
Customer Deposits Received - - - - -
Cash Received for Reimbursed Expenses 12,462 - - - -
Cash Received for Miscellaneous Revenues 102 14 238,769 36 -
Cash Paid to Other Funds - - - - (81,459)
Cash Paid for Miscellaneous Expenses - - - - -
Net Cash Provided (Used) by Operating Activities (102,996) 521,248 3,094,061 (61,185) (131,263)
Cash Flows from Noncapital Financing Activities:
Transfers In from Other Funds - - - - 131,263
Transfers Out to Other Funds - - (1,360,671) - -
Net Cash Provided (Used) by Noncapital Financing Activities - - (1,360,671) - 131,263
Cash Flows from Capital and Related Financing Activities:
Acquisition and Construction of Capital Assets - - (1,963,943) - -
Proceeds from Sale of Assets - - 182,823 - -
Net Cash Used by Capital and Related Financing Activities - - (1,781,120) - -
Cash Flows from Investing Activities:
Purchase of Investments (91,699) (5,542,625) (4,109,650) (39,660) -
Proceeds from Sale and Maturities of
Investment Securities 128,218 5,746,886 4,437,765 69,132 -
Investment Income 4,193 231,458 157,465 (1,443) -
Net Cash Provided (Used) by Investing Activities 40,712 435,719 485,580 28,029 -
Net Increase in Cash and Cash Equivalents (62,284) 956,967 437,850 (33,156) -
Cash and Cash Equivalents, Oct. 1 112,474 3,042,010 2,471,694 54,787 -
Cash and Cash Equivalents, Sept. 30 50,190$ 3,998,977$ 2,909,544$ 21,631$ -$
Reconciliation of Operating Income (Loss) to Net Cash
Provided by Operating Activities:
Operating Income (Loss)(80,163)$ 214,691$ 1,096,179$ (47,995)$ 632$
Adjustment to Reconcile Operating Income to Net
Cash Provided by Operating Activities:
Depreciation, Bad Debt Expense, Inventory Loss 15,387 - 2,166,758 28,424 -
Provision for Uncollectible Accounts - (14) - - -
Miscellaneous Nonoperating Revenues 12,564 14 238,769 36 -
Miscellaneous Nonoperating Expenses - - - - -
Changes in Assets and Liabilities:
Change in Accounts Receivable - (2,391) - - -
Change in Inventory - - - 77,125 -
Change in Prepaid Costs - - - - -
Change in Accounts Payable (51,176) 28,759 (258,335) (104,032) (20,485)
Change in Due to Other Funds - - - - (81,459)
Change in Claims Payable - 280,189 - - -
Change in Accrued Liabilities 1 - (149,310) (2,997) (14,340)
Change in Accrued Vacation 391 - - (11,746) (15,611)
Total Adjustments (22,833) 306,557 1,997,882 (13,190) (131,895)
Net Cash Provided (Used) by Operating Activities (102,996)$ 521,248$ 3,094,061$ (61,185)$ (131,263)$
108
Property and Utility Customer Workers'
Casualty Unemployment Services Compensation Total
943,200$ 30,847$ 2,527,637$ 852,791$ 16,238,495$
(674,069) (7,144) (1,230,102) (387,483) (9,821,106)
- - (1,366,909) - (2,578,680)
- - - - -
8,286 - - - 20,748
103,340 - - - 342,261
- - - - (81,459)
- - (101) - (101)
380,757 23,703 (69,475) 465,308 4,120,158
- - - - 131,263
- - (37,293) - (1,397,964)
- - (37,293) - (1,266,701)
- - - - (1,963,943)
- - - - 182,823
- - - - (1,781,120)
(1,239,270) (219,444) (177,326) (1,399,345) (12,819,019)
1,186,613 226,535 231,679 1,322,606 13,349,434
37,094 8,626 8,123 50,373 495,889
(15,563) 15,717 62,476 (26,366) 1,026,304
365,194 39,420 (44,292) 438,942 2,098,641
559,851 119,220 156,388 611,023 7,127,447
925,045$ 158,640$ 112,096$ 1,049,965$ 9,226,088$
345,473$ 22,442$ (107,684)$ 432,960$ 1,876,535$
- - 55,339 - 2,265,908
- - 557 543
111,626 - - - 363,009
- - (101) (101)
- - (6,588) - (8,979)
- - - - 77,125
- - - - -
26,977 1,261 (9,270) (10,710) (397,011)
- - - - (81,459)
(103,319) - - 43,058 219,928
- - 111 - (166,535)
- - (1,839) - (28,805)
35,284 1,261 38,209 32,348 2,243,623
380,757$ 23,703$ (69,475)$ 465,308$ 4,120,158$
109
110
CAPITAL ASSETS USED IN THE OPERATION
OF GOVERNMENTAL FUNDS
111
112
Governmental funds capital assets:
Buildings and Building Improvements 24,781,958$
Improvements 24,122,568
Machinery and Equipment 7,656,863
Infrastructure 187,300,971
Construction in Progress 27,852,493
Land 29,957,616
301,672,469$
Investments in governmental funds capital assets by source:
Capital Projects 284,513,746$
General Fund Revenues 7,063,872
Special Revenue Funds 7,039,350
Contributions 3,055,501
301,672,469$
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, 2008
113
Improvements Machine/Tool
Function and Activity Total Buildings Land Other than Bldg Equipment Infrastructure
Development Services:
Development Services Administration 38,499$ 15,500$ -$ -$ 22,999$ -$
Inspection - - - - - -
38,499 15,500 - - 22,999 -
Fire:
Emergency Management 15,887 - - - 15,887 -
Emergency Medical Services 376,934 - - - 376,934 -
Fire Administration 324,799 - - - 324,799 -
Fire Prevention - - - - - -
Fire Suppression 302,955 - - - 302,955 -
1,020,575 - - - 1,020,575 -
Fiscal Services:
Accounting 38,900 - - - 38,900 -
Budget/Research - - - - - -
Fiscal Administration - - - - - -
Municipal Court 292,349 - - 134,308 158,041 -
Purchasing - - - - - -
Risk Management - - - - - -
331,249 - - 134,308 196,941 -
General Government:
Community Development 26,054 - 20,840 - 5,214 -
City Manager 79,322 - - - 79,322 -
City Programs 1,437,504 - 1,437,504 - - -
City Secretary - - - - - -
Economic Development 27,065 - 14,470 - 12,595 -
Human Resources - - - - - -
Legal - - - - - -
Capital Projects 24,320,427 398,660 20,967,167 753,545 2,201,055 -
Public Relations 284,766 - - 37,725 247,041 -
26,175,138 398,660 22,439,981 791,270 2,545,227 -
Office of Technology and Information Services:
Geographic Information Systems 32,292 - - - 32,292 -
Library Services 356,969 - 40,000 - 316,969 -
Management Information Systems 1,903,023 - - - 1,903,023 -
Mail 31,585 - - - 31,585 -
OTIS Administration 286,884 - - - 286,884 -
2,610,753 - 40,000 - 2,570,753 -
Police:
Criminal Investigation 36,620 - - - 36,620 -
Communications/Jail - - - - - -
Police Administration 334,006 - - - 334,006 -
Professional Standards - - - - - -
Quartermaster 71,716 - - - 71,716 -
Special Services 77,717 - - - 77,717 -
Technical Services - - - - - -
Uniform Patrol 177,648 - - - 177,648 -
697,707 - - - 697,707 -
CITY OF COLLEGE STATION, TEXAS
Capital Assets used in the Operation of Governmental Funds
Schedule by Function and Activity 1
For the Fiscal Year Ended September 30, 2008
114
Improvements Machine/Tool
Function and Activity Total Buildings Land Other than Bldg Equipment Infrastructure
CITY OF COLLEGE STATION, TEXAS
Capital Assets used in the Operation of Governmental Funds
Schedule by Function and Activity 1
For the Fiscal Year Ended September 30, 2008
Parks and Recreation:
Forestry 24,025 - - 13,735 10,290 -
Parks Administration 207,050 - - 207,050 - -
Parks Maintenance/Operations 278,632 - - 149,571 129,061 -
Capital Projects 22,661,946 916,965 1,012,455 20,732,526 - -
Recreation 5,199 - - - 5,199 -
Special Facilities 60,502 - - 10,619 49,883 -
23,237,354 916,965 1,012,455 21,113,501 194,433 -
Public Works:
Drainage Maintenance 14,993 - - - 14,993 -
Engineering 17,987 - - - 17,987 -
Facilities Maintenance 117,858 70,238 32,900 - 14,720 -
Public Works Administration 20,517 - - - 20,517 -
Capital Projects 186,007,655 - 1,762,185 - - 184,245,470
Streets Maintenance 212,323 - - - 212,323 -
Traffic Signs/Markings 5,689 - - - 5,689 -
Traffic Signals 47,853 - - - 47,853 -
186,444,875 70,238 1,795,085 - 334,082 184,245,470
Other:
Non-departmental 33,263,826 23,380,595 4,670,095 2,083,490 74,145 3,055,501
33,263,826 23,380,595 4,670,095 2,083,490 74,145 3,055,501
Construction in Progress 27,852,493 3,047,502 - 11,954,755 304,882 12,545,354
27,852,493 3,047,502 - 11,954,755 304,882 12,545,354
Total governmental funds capital assets 301,672,469$ 27,829,460$ 29,957,616$ 36,077,324$ 7,961,744$ 199,846,325$
1 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
Governmental Funds Governmental Funds
Capital Assets Capital Assets
Function and Activity 9/30/07 Additions Retirements Transfers/Other 9/30/08
Planning and Development Services:
Development Services Administration 38,499$ -$ -$ -$ 38,499$
Inspection - -
38,499 - - - 38,499
Fire:
Emergency Management 9,818 - - 6,069 15,887
Emergency Medical Services 312,952 63,982 - - 376,934
Fire Administration 310,024 14,775 - - 324,799
Fire Prevention - - - - -
Fire Suppression 302,955 - - - 302,955
935,749 78,757 - 6,069 1,020,575
Fiscal Services:
Accounting - 38,900 - - 38,900
Budget/Research - - - - -
Fiscal Administration - - - - -
Municipal Court 111,916 180,433 - - 292,349
Purchasing - - - - -
Risk Management - - - - -
111,916 219,333 - - 331,249
General Government:
Community Development 20,840 5,214 - - 26,054
City Manager 79,322 - - - 79,322
City Programs 1,437,504 - - - 1,437,504
City Secretary - - - - -
Economic Development 14,470 - (8,000) 20,595 27,065
Human Resources - - - - -
Legal - - - - -
Capital Projects 24,916,613 55,760 (44,886) (607,061) 24,320,427
Public Communications 189,665 89,945 - 5,157 284,766
26,658,414 150,919 (52,886) (581,309) 26,175,138
Information Services:
Geographic Information Systems 32,292 - - - 32,292
Library Services 316,969 40,000 - - 356,969
Management Information Systems 1,074,686 828,337 - - 1,903,023
Mail - - (26,573) 58,158 31,585
IS Administration 155,994 130,890 - - 286,884
1,579,941 999,227 (26,573) 58,158 2,610,753
Police:
Criminal Investigation 36,620 - - - 36,620
Communications/Jail - - - - -
Police Administration 324,006 - - 10,000 334,006
Professional Standards - - - - -
Quartermaster 55,256 16,460 - - 71,716
Special Services 71,786 5,931 - - 77,717
Technical Services - - - - -
Uniform Patrol 177,648 - - - 177,648
665,316 22,391 - 10,000 697,707
CITY OF COLLEGE STATION, TEXAS
Capital Assets Used in the Operation of Governmental Funds
Schedule of Changes by Function and Activity
For the Fiscal Year Ended September 30, 2008
116
Governmental Funds Governmental Funds
Capital Assets Capital Assets
Function and Activity 9/30/07 Additions Retirements Transfers/Other 9/30/08
CITY OF COLLEGE STATION, TEXAS
Capital Assets Used in the Operation of Governmental Funds
Schedule of Changes by Function and Activity
For the Fiscal Year Ended September 30, 2008
Parks and Recreation:
Forestry 24,025 - - - 24,025
Parks Administration 207,050 - - - 207,050
Parks Maintenance/Operations 278,632 - - - 278,632
Capital Projects 21,382,921 1,280,389 - (1,364) 22,661,946
Recreation 5,199 - - 5,199
Special Facilities 60,502 - - - 60,502
21,958,329 1,280,389 - (1,364) 23,237,354
Public Works:
Drainage Maintenance 14,993 - - - 14,993
Engineering 17,987 - - - 17,987
Facilities Maintenance 117,858 - - - 117,858
Public Works Administration 20,517 - - - 20,517
Capital Projects 51,749,183 13,163,686 - 121,094,786 186,007,655
Streets Maintenance 212,323 - - - 212,323
Traffic Signs/Markings 5,689 - - - 5,689
Traffic Signals 47,853 - - - 47,853
52,186,403 13,163,686 - 121,094,786 186,444,875
Other:
Non-departmental 145,829,801 7,920,385 - (120,486,360) 33,263,826
145,829,801 7,920,385 - (120,486,360) 33,263,826
Construction in Progress 26,723,932 19,536,926 (18,408,365) - 27,852,493
26,723,932 19,536,926 (18,408,365) - 27,852,493
Total Governmental Funds Capital Assets 276,688,300$ 43,372,013$ (18,487,824)$ 99,980$ 301,672,469$
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.
117
118
CITY OF COLLEGE STATION
STATISTICAL
SECTION
STATISTICAL SECTION -
UNAUDITED
This section of the City of College Station’s comprehensive annual financial report presents detailed
information as a context for understanding what the information in the financial statements, note disclosures,
and required supplementary information says about the City’s overall financial condition.
Contents
Financial Trends
These schedules contain trend information to help the reader understand how the City’s financial
performance and well-being have changed over time. (Pages 121-127)
Revenue Capacity
These schedules contain information to help the reader assess the factors affecting the City’s ability to
generate its property and sales taxes. (Pages 128-135)
Debt Capacity
These schedules present information to help the reader assess the affordability of the City’s current levels of
outstanding debt and the City’s ability to issue additional debt in the future. (Pages 136-140)
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment
within which the City’s financial activities take place and to help make comparisons over time and with other
governments. (Pages 141-142)
Operating Information
These schedules contain information about the City’s operations and resources to help the reader
understand how the City’s financial information relates to the services the City provides and the activities it
performs. (Pages 143-146)
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial
reports for the relevant year. The City implemented GASB Statement 34 in 2003; schedules presenting government-wide
information include information beginning in that year.
119
120
Fiscal Year
2003 2004 2005 2006 2007 2008
Governmental activities
Invested in capital assets, net of related debt 86,587,535$ 100,066,963$ 106,460,949$ 108,287,795$ 113,750,039$ 114,935,845$
Restricted 12,031,989 4,289,623 4,289,531 4,564,184 5,089,422 6,357,013
Unrestricted 28,076,989 25,962,837 27,897,090 39,602,065 45,967,901 59,703,654
Total governmental activities net assets 126,696,513$ 130,319,423$ 138,647,570$ 152,454,044$ 164,807,362$ 180,996,512$
Business-type activities
Invested in capital assets, net of related debt 109,857,913$ 130,810,275$ 132,001,489$ 142,778,246$ 147,043,092$ 145,066,758$
Restricted 2,466,731 2,651,325 2,797,735 2,920,980 3,056,356 1,590,977
Unrestricted 31,766,395 29,665,429 30,830,640 32,980,043 37,474,945 43,957,844
Total business-type activities net assets 144,091,039$ 163,127,029$ 165,629,864$ 178,679,269$ 187,574,393$ 190,615,579$
Primary government
Invested in capital assets, net of related debt 196,445,448$ 230,877,238$ 238,462,438$ 251,066,041$ 260,793,131$ 260,002,603$
Restricted 14,498,720 6,940,948 7,087,266 7,485,164 8,145,778 7,947,990
Unrestricted 59,843,384 55,628,266 58,727,730 72,582,108 83,442,846 103,661,498
Total primary government net assets 270,787,552$ 293,446,452$ 304,277,434$ 331,133,313$ 352,381,755$ 371,612,091$
Source: City of College Station
Note: The City began to report accrual information when it implemented GASB Statement 34 in fiscal year 2003
LAST SIX FISCAL YEARS
NET ASSETS BY COMPONENT
CITY OF COLLEGE STATION, TEXAS
(accrual basis of accounting)
121
CITY OF COLLEGE STATION, TEXAS
CHANGES IN NET ASSETS
LAST SIX FISCAL YEARS
(accrual basis of accounting)
Fiscal Year
2003 2004 2005 2006 2007 2008
Expenses
Governmental activities:
General government 7,857,618$ 7,536,427$ 6,457,556$ 7,755,725$ 7,654,393$ 8,551,304$
Fiscal services 1,834,859 1,953,189 2,467,187 2,452,442 2,442,439 2,977,362
Police 9,374,251 9,654,447 10,666,318 11,214,413 12,299,698 13,395,874
Fire 7,102,089 7,189,495 7,853,876 8,280,257 9,472,331 11,359,260
Planning and development services 1,651,761 1,586,114 1,580,317 1,449,327 1,603,963 1,910,359
Public works 5,242,162 5,004,976 5,401,568 6,227,707 6,620,846 9,467,081
Capital projects - - - - - 719,391
Parks and recreation 6,361,728 6,154,862 6,549,466 7,353,984 9,148,511 10,385,095
Information services 2,919,155 2,652,957 2,881,863 3,087,596 2,689,720 2,749,327
Interest on long-term debt 3,643,268 3,448,533 3,895,520 4,116,871 4,291,022 3,860,801
Unallocated depreciation 2,543,780 2,690,998 5,430,745 5,759,049 6,026,372 667,890
Total governmental activities expense 48,530,671 47,871,998 53,184,416 57,697,371 62,249,295 66,043,744
Business-type activities:
Electric 43,299,695 41,120,750 47,815,339 51,250,110 60,242,408 70,485,984
Water 6,283,025 6,542,184 7,908,695 7,770,081 8,302,863 8,706,415
Sewer 7,347,315 7,214,296 7,262,208 7,973,677 8,179,813 9,159,176
Sanitation 4,419,352 4,848,591 4,931,079 5,421,624 5,916,431 6,244,639
Cedar Creek Condominiums - 61,150 - - - -
Northgate parking 461,394 550,544 591,944 621,593 591,980 668,237
Total business-type activities expense 61,810,781 60,337,515 68,509,265 73,037,085 83,233,495 95,264,451
Total primary government expense 110,341,452$ 108,209,513$ 121,693,681$ 130,734,456$ 145,482,790$ 161,308,195$
Program Revenues
Governmental activities:
Charges for services:
Fines, forfeitures and penalties 3,215,162$ 3,563,970$ 4,008,637$ 3,798,807$ 3,618,236$ 3,798,313$
Licenses and permits 1,104,793 1,215,924 1,043,672 1,091,848 1,306,690 1,154,902
Public works 1,237,447 1,784,694 1,110,686 1,290,935 1,199,565 1,255,525
Parks and recreation 1,399,390 1,346,580 1,044,134 1,244,476 1,420,284 1,911,789
Other activities 1,480,889 1,614,408 2,002,338 2,656,136 3,210,563 3,548,309
Operating grants and contributions 1,891,808 3,208,957 2,629,494 3,144,254 2,038,535 1,735,170
Capital grants and contributions 6,399,178 5,266,837 4,489,883 7,477,874 5,271,090 3,055,501
Total governmental activities program revenues 16,728,667 18,001,370 16,328,844 20,704,330 18,064,963 16,459,509
Business-type activities:
Charges for services:
Electric sales 46,592,459 47,431,497 51,467,169 60,217,421 67,462,075 76,787,412
Water sales 8,861,195 8,319,779 9,519,714 10,852,660 10,060,398 12,025,086
Sewer service 9,159,142 9,334,778 9,697,314 10,363,603 10,590,688 11,184,565
Garbage collection fees 5,986,207 4,829,150 5,151,204 6,419,446 7,512,194 9,628,798
Parking garage fees 545,566 603,465 480,627 576,892 620,124 673,818
Other activities 4,341 - - - - -
Operating grants and contributions 50,700 - - - - -
Capital grants and contributions 3,887,629 5,179,221 1,937,320 4,677,465 4,041,105 5,349,125
Total business-type activities program revenues 75,087,239 75,697,890 78,253,348 93,107,487 100,286,584 115,648,804
Total primary government program revenues 91,815,906$ 93,699,260$ 94,582,192$ 113,811,817$ 118,351,547$ 132,108,313$
122
Fiscal Year
2003 2004 2005 2006 2007 2008
Net (Expense)/Revenue
Governmental activities (31,802,004)$ (29,870,628)$ (36,855,572)$ (36,993,041)$ (44,184,332)$ (49,584,235)$
Business-type activities 13,276,458 15,360,375 9,744,083 20,070,402 17,053,089 20,384,355
Total primary government net expense (18,525,546)$ (14,510,253)$ (27,111,489)$ (16,922,639)$ (27,131,243)$ (29,199,880)$
General Revenues and Other Changes in Net Assets
Governmental activities:
Taxes
Property taxes 13,441,000$ 14,668,641$ 15,888,475$ 16,646,519$ 18,573,309$ 20,670,112$
Sales and mixed beverage taxes 14,027,489 15,238,995 15,705,090 17,082,936 18,449,731 20,241,973
Franchise taxes 1,688,947 1,974,587 1,718,491 2,132,341 1,931,196 2,090,779
Hotel taxes 2,120,015 2,191,429 2,306,928 2,671,417 2,980,250 3,585,512
Unrestricted investment earnings 1,739,929 1,224,546 1,487,926 3,415,849 4,512,575 3,385,844
Gain (Loss) on sale of capital assets 19,563 4,386 (111,916) - - -
Correction to value of capital assets 7,795,715 - - - - -
Adjustment to claims payable - (904,263) - - - -
Transfers 6,856,352 (904,783) 8,188,725 8,850,453 10,090,589 7,559,165
Total governmental activities 47,689,010 33,493,538 45,183,719 50,799,515 56,537,650 57,533,385
Business-type activities:
Unrestricted investment earnings 1,126,900 662,359 947,477 1,829,456 1,932,624 1,330,785
Correction to value of capital assets - 2,108,473 - - - -
Transfers (6,856,352) 904,783 (8,188,725) (8,850,453) (10,090,589) (10,433,954)
Total business-type activities (5,729,452) 3,675,615 (7,241,248) (7,020,997) (8,157,965) (9,103,169)
Total primary government 41,959,558$ 37,169,153$ 37,942,471$ 43,778,518$ 48,379,685$ 48,430,216$
Change in net assets
Governmental activities 15,887,006$ 3,622,910$ 8,328,147$ 13,806,474$ 12,353,318$ 7,949,150$
Business-type activities 7,547,006 19,035,990 2,502,835 13,049,405 8,895,124 11,281,186
Total primary government 23,434,012$ 22,658,900$ 10,830,982$ 26,855,879$ 21,248,442$ 19,230,336$
Source: City of College Station
Notes: The City began to report accrual information when it implemented GASB Statement 34 in fiscal year 2003.
Correction to value of capital assets in fiscal years 2003 and 2004 are prior period adjustments.
Adjustment to claims payable in fiscal year 2004 is a prior period adjustment.
CITY OF COLLEGE STATION, TEXAS
CHANGES IN NET ASSETS - Continued
LAST SIX FISCAL YEARS
(accrual basis of accounting)
123
CITY OF COLLEGE STATION, TEXASPROGRAM REVENUES BY FUNCTION/PROGRAMLAST SIX FISCAL YEARS(accrual basis of accounting)Program Revenues200320042005200620072008Function/ProgramGovernmental activities: General government 1,979,207$ 3,618,878$ 3,121,430$ 4,357,597$ 3,343,904$ 2,501,778$ Fiscal services 327,188 333,043 508,810 547,790 409,100 684,666 Police 3,364,991 3,677,391 4,093,425 3,875,900 3,713,866 4,533,697 Fire 916,473 724,278 916,804 817,910 1,400,464 1,137,759 Planning and development services 1,104,793 1,215,924 1,043,672 1,091,848 1,306,690 1,357,037 Public works 7,636,625 7,051,531 5,600,569 8,768,809 6,470,655 4,312,571 Parks and recreation 1,399,390 1,380,325 1,044,134 1,244,476 1,420,284 1,932,001 Subtotal governmental activities 16,728,667 18,001,370 16,328,844 20,704,330 18,064,963 16,459,509 Business-type activities: Electric 47,018,072 48,032,185 52,780,914 62,284,935 69,033,816 77,419,441 Water 10,957,066 10,260,307 9,826,360 12,409,728 11,314,888 14,115,391 Sewer 10,575,987 11,972,783 10,014,243 11,416,486 11,805,562 13,811,356 Sanitation 5,986,207 4,829,150 5,151,204 6,419,446 7,512,194 9,628,798 Cedar Creek Condominiums 4,341 - - - - - Northgate parking 545,566 603,465 480,627 576,892 620,124 673,818 Subtotal business-type activities 75,087,239 75,697,890 78,253,348 93,107,487 100,286,584 115,648,804 Total primary government 91,815,906$ 93,699,260$ 94,582,192$ 113,811,817$ 118,351,547$ 132,108,313$ Source: City of College Station124
1999200020012002200320042005200620072008General Fund Reserved 346,038$ 543,396$ 660,488$ 989,028$ 1,728,294$ 1,089,510$ 1,132,180$ 1,523,619$ 1,108,449$ 2,305,476$ Unreserved 7,463,493 7,884,787 8,772,212 9,122,197 9,522,041 9,613,442 9,038,345 9,448,389 11,824,140 9,679,913 Total general fund 7,809,531$ 8,428,183$ 9,432,700$ 10,111,225$ 11,250,335$ 10,702,952$ 10,170,525$ 10,972,008$ 12,932,589$ 11,985,389$ All Other Governmental Funds Reserved 8,289,966$ 28,691,651$ 9,395,621$ 10,685,338$ 41,119,894$ 42,522,379$ 42,999,111$ 49,111,974$ 46,372,274$ 48,819,538$ Unreserved, reported in: Special revenue funds 7,356,274 7,655,383 12,749,505 12,460,155 10,851,935 6,085,255 6,244,225 7,462,140 10,148,840 11,526,009 Capital projects funds 10,244,405 - 25,443,167 33,275,222 - - - - - - Total all other governmental funds 25,890,645$ 36,347,034$ 47,588,293$ 56,420,715$ 51,971,829$ 48,607,634$ 49,243,336$ 56,574,114$ 56,521,114$ 60,345,547$ Source: City of College StationNote: Fiscal years 1998 through 2002 have been restated to include trust funds.Fiscal YearCITY OF COLLEGE STATION, TEXASFUND BALANCES, GOVERNMENTAL FUNDSLAST TEN FISCAL YEARS(modified accrual basis of accounting)125
1999200020012002200320042005200620072008RevenuesTaxes 23,465,240$ 25,429,183$ 27,254,701$ 29,499,644$ 31,277,451$ 34,073,652$ 35,618,984$ 38,533,213$ 41,934,486$ 46,588,376$ Licenses and permits 643,968 680,776 779,159 870,636 1,012,960 1,112,766 1,025,013 945,593 1,191,105 1,154,902 Intergovernmental 2,153,853 1,607,155 3,221,851 2,572,428 1,950,883 3,208,957 2,592,312 3,144,254 2,038,535 1,707,957 Charges for services 1,546,912 1,819,069 2,038,422 2,251,297 2,610,056 2,538,583 2,634,683 2,925,281 3,339,352 3,790,147 Fines, forfeitures and penalties 1,208,499 1,393,566 1,798,870 2,225,354 2,657,643 2,966,278 3,518,940 3,285,907 3,256,488 3,798,313 Special assessments 875,353 911,415 944,636 982,760 1,035,023 1,062,179 1,110,686 1,290,935 1,199,565 1,255,525 Investment income 1,522,837 2,642,328 3,487,814 2,615,798 1,543,026 1,062,069 1,269,201 3,066,642 3,864,797 2,886,636 Rents and royalties 166,723 167,927 213,832 228,392 233,026 256,023 243,831 244,864 261,225 279,004 Loan repayments 122,198 6,879 9,979 9,626 11,322 5,418 2,541 - - - Contributions 231,131 166,975 448,949 356,369 475,913 784,402 37,182 12,281 31,605 27,213 Reimbursed expenditures - - 531,307 32,803 7,258 28,393 - 145,749 479,675 46,038 Other revenues 340,669 546,935 551,280 437,359 335,405 679,349 631,192 447,432 738,415 1,046,431 Total revenues 32,277,383 35,372,208 41,280,800 42,082,466 43,149,966 47,778,069 48,684,565 54,042,151 58,335,248 62,580,542 ExpendituresGeneral government 1,735,592 1,775,494 2,909,436 3,801,250 3,765,079 4,187,972 4,480,075 4,216,582 4,699,159 7,319,662 Fiscal services 1,783,602 1,967,135 1,889,611 2,112,936 2,319,008 2,479,082 3,038,145 3,050,533 3,013,548 3,573,686 Police 6,903,838 7,567,620 8,273,632 8,829,060 9,143,331 9,803,577 10,829,081 11,559,669 12,556,678 13,219,117 Fire 4,844,031 5,179,104 5,702,804 6,340,775 6,989,125 7,275,289 7,964,785 8,493,228 9,622,195 11,251,400 Planning and development services 1,445,172 1,558,036 1,887,378 1,883,224 1,935,277 1,964,001 1,962,603 1,877,732 2,008,901 2,281,747 Public works 3,923,009 4,353,073 4,583,796 5,207,101 5,292,243 5,534,404 6,117,241 7,116,329 7,440,854 7,182,443 Capital projects - - - - - - - - - 715,707 Economic and community development 594,417 773,703 41,623 122,074 6,369 16,886 11,281 - - - Parks and recreation 4,592,990 5,185,392 5,200,809 5,862,938 6,279,342 6,388,099 6,778,196 7,520,189 8,167,857 9,071,198 Information systems 1,498,635 1,760,191 2,229,600 2,243,844 2,320,950 2,346,534 2,500,518 2,596,591 3,070,524 3,366,764 Library 571,742 600,778 581,768 670,818 681,350 665,291 694,445 870,203 912,527 993,102 Reimbursed administrative (2,769,942) (2,878,132) (3,538,877) (3,559,556) (3,703,529) (3,328,431) (3,485,807) (3,335,264) (3,305,040) (3,772,362) Contributions 1,528,615 1,829,125 1,541,173 1,348,885 1,573,651 2,504,589 1,895,742 1,995,564 1,855,961 2,151,592 Community development block grant - - - 538,901 222,169 201,099 275,775 340,399 215,707 - Home grant - - - 626,848 408,779 304,580 439,243 840,211 323,811 - Community development grant 1,110,610 480,865 763,303 - - - - - - - Claim settlements 270,000 - - - - - - - - - Other expenditures 95,648 269,786 577,606 183,450 624,837 253,270 296,344 108,527 147,860 204,338 Capital outlay 5,452,034 11,778,585 9,885,474 13,702,819 11,286,448 12,775,413 15,435,376 11,610,189 14,213,574 19,538,322 CITY OF COLLEGE STATION, TEXASCHANGES IN FUND BALANCES, GOVERNMENTAL FUNDSLAST TEN FISCAL YEARS(modified accrual basis of accounting)Fiscal Year126
1999200020012002200320042005200620072008Debt service Principal 2,845,000 3,463,614 4,475,000 5,950,000 5,820,000 10,110,000 6,190,000 7,285,000 7,820,000 8,530,000 Interest 2,147,653 2,117,480 3,213,770 3,425,390 3,647,529 3,376,538 3,885,075 4,078,635 4,212,245 3,892,490 Issuance costs 80,947 107,057 77,244 115,500 118,335 352,114 118,261 - - - Fiscal charges 7,839 8,016 8,926 8,752 12,500 15,332 13,871 152,729 527,806 70,796 Intergovernmental 70,000 405,660 - - 223,608 221,902 97,621 743,117 342,630 881,604 Total expenditures 38,731,432 48,302,582 50,304,076 59,415,009 58,966,401 67,447,541 69,537,871 71,120,163 77,846,797 90,471,606 Deficiency of revenues under expenditures(6,454,049) (12,930,374) (9,023,276) (17,332,543) (15,816,435) (19,669,472) (20,853,306) (17,078,012) (19,511,549) (27,891,064) Other Financing Sources (Uses)Proceeds from long-term debt 7,080,000 14,113,000 7,292,870 20,056,200 6,570,000 16,375,000 13,347,581 15,700,000 7,890,000 19,970,000 Proceeds from refunding bonds - - - - - 5,980,000 - - 10,255,000 - Payment to bond escrow agent - - - - - (6,260,371) - - (10,451,378) - Premium on bonds issued - - - - - 280,371 - - 373,648 - Sale of capital assets 307,267 55,403 580,909 30,106 19,563 4,386 12,182 17,500 318,103 10,981 Transfers in 6,724,409 11,724,310 14,945,966 8,764,250 7,910,690 10,945,210 11,476,019 11,864,435 15,054,935 13,828,414 Transfers out (1,324,234) (1,887,298) (1,550,693) (2,007,066) (1,993,594) (11,566,702) (3,879,201) (2,371,662) (2,021,178) (3,041,098) Total other financing sources 12,787,442 24,005,415 21,269,052 26,843,490 12,506,659 15,757,894 20,956,581 25,210,273 21,419,130 30,768,297 Net change in fund balances 6,333,393$ 11,075,041$ 12,245,776$ 9,510,947$ (3,309,776)$ (3,911,578)$ 103,275$ 8,132,261$ 1,907,581$ 2,877,233$ Debt services as a percentage of noncapital expenditures15.3% 15.6% 19.2% 20.8% 20.1% 25.3% 18.9% 19.4% 19.7% 17.6%Source: City of College StationNotes: Direct capital expenditures have been removed from departmental expenditure lines and included in the capital outlay line item. Fiscal years 1998 through 2001 Community Development expenditures are not split between CDBG and HOME. In these years, they are stated as one line item.Fiscal year 1998 investment income was restated to reflect an additional $128,885 as a result of GASB 31 implementation which requires investments to be reported at fair market value.Fiscal years 1998 through 2002 have been restated to include trust funds.Fiscal YearCITY OF COLLEGE STATION, TEXASCHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS - ContinuedLAST TEN FISCAL YEARS(modified accrual basis of accounting)127
Fiscal Year Property Sales Hotel Franchise Mixed Drink Total1999 8,528,764$ 11,489,702$ 1,750,194$ 1,523,736$ 172,844$ 23,465,240$ 2000 9,294,964 12,573,564 1,796,813 1,577,815 186,027 25,429,183 2001 10,735,576 12,773,722 1,843,419 1,644,627 257,357 27,254,701 2002 12,224,416 13,400,054 1,926,009 1,714,241 234,924 29,499,644 2003 13,441,000 13,780,639 2,120,015 1,688,947 246,850 31,277,451 2004 14,668,641 14,957,697 2,191,429 1,974,587 281,298 34,073,652 2005 15,888,475 15,445,404 2,306,928 1,718,491 259,686 35,618,984 2006 16,646,519 16,752,174 2,671,417 2,132,341 330,762 38,533,213 2007 18,573,309 18,077,973 2,980,250 1,931,196 371,758 41,934,486 2008 20,670,112 19,822,906 3,585,512 2,090,779 419,067 46,588,376 Change1999-2008 142.4% 72.5% 104.9% 37.2% 142.5% 98.5%Source: City of College StationNote: Property taxes include general fund, debt service fund, Melrose Apartment TIF (2000-2002), Northgate TIF(2008-present) and Wolf Pen Creek TIF (1996 - Present).CITY OF COLLEGE STATION, TEXASTAX REVENUE BY SOURCE, GOVERNMENTAL FUNDSLAST TEN FISCAL YEARS(modified accrual basis of accounting)128
Taxable AssessedCommercial Personal, InventoryValue as a Residential and Industrial and Other Less Exemptions Less TIF (1) Total Taxable Total Direct Estimated Actual Percentage ofFiscal Year Property Property Property and Abatements Captured Value Assessed Value Tax Rate Taxable Value Actual Taxable Value1999 $ 1,326,150,471 $ 427,342,143 $ 454,526,419 $ 276,453,209 $ 18,504,453 $ 1,913,061,371 $ 0.4293 $ 1,913,061,371 100.00%2000 1,394,367,040 532,743,286 493,708,598 308,471,247 37,318,353 2,075,029,324 0.4293 2,075,029,324 100.00%2001 1,574,451,660 565,368,046 521,295,544 345,752,888 41,698,188 2,273,664,174 0.4293 2,273,664,174 100.00%2002 1,721,906,078 596,567,968 552,036,938 380,950,901 39,379,860 2,450,180,223 0.4777 2,450,180,223 100.00%2003 1,910,284,688 634,030,921 607,645,557 428,395,713 30,625,663 2,692,939,790 0.4777 2,674,807,515 99.33%2004 2,144,406,477 723,887,327 653,978,324 493,364,734 39,971,363 2,988,936,031 0.4653 2,988,936,031 100.00%2005 2,339,284,129 770,194,254 738,376,045 556,722,986 45,182,585 3,245,948,857 0.4640 3,250,329,407 100.13%2006 2,530,659,165 931,255,843 798,179,118 614,609,545 45,750,172 3,599,734,409 0.4394 3,599,734,409 100.00%2007 2,849,558,106 1,020,242,352 828,757,366 643,387,278 50,131,743 4,005,038,803 0.4394 4,005,038,803 100.00%2008 3,200,809,497 1,141,458,255 881,095,548 677,645,852 68,644,309 4,477,073,139 0.4394 4,477,073,139 100.00%Source: Brazos County Appraisal DistrictNotes: Assessed value is 100% of the estimated actual value.(1) Tax increment financing district (TIF).CITY OF COLLEGE STATION, TEXASASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTYLAST TEN FISCAL YEARS129
General Total College
Fiscal Basic Obligation Direct Station Brazos
Year Rate Debt Service Rate ISD County
1999 0.1618 0.2675 0.4293 1.7500 0.4170
2000 0.1631 0.2662 0.4293 1.7500 0.4170
2001 0.1662 0.2631 0.4293 1.7500 0.4100
2002 0.1846 0.2931 0.4777 1.7900 0.4200
2003 0.1946 0.2831 0.4777 1.7900 0.4146
2004 0.1921 0.2732 0.4653 1.7700 0.4350
2005 0.1942 0.2698 0.4640 1.7700 0.4726
2006 0.1896 0.2498 0.4394 1.6750 0.4650
2007 0.1910 0.2484 0.4394 1.4800 0.4550
2008 0.1910 0.2484 0.4394 1.2411 0.4650
Source: Brazos County Appraisal District
Notes:
(1) Tax rates are established by each taxing jurisdiction on an annual basis for
revenues to be collected in the following fiscal year. The City must publish its
effective and rollback tax rates before adopting an actual tax rate. If the City
adopts a rate that exceeds the rollback rate, voters may petition for an election
to limit the rate to the rollback rate. If the City adopts a rate that exceeds its
effective rate, additional public hearings and notices are required. Rates for
debt service are set based on each year's requirements.
(2) The date that taxes are due for all jurisdictions is October 1. Taxes for all
jurisdictions become delinquent on February 1. The penalty is set by state law at
6% in February, and an additional 1% per month up to 12%. The interest is
accrued at 1% per month.
(3) The upper limit of the tax rate is set at $2.50/$100 of assessed value for each
jurisdiction by State Statute. This limit is for both operations and debt service
combined.
City Direct Rates Overlapping Rates
CITY OF COLLEGE STATION, TEXAS
DIRECT AND OVERLAPPING PROPERTY TAX RATES
LAST TEN FISCAL YEARS
(rate per $100 of assessed value)
130
Percent of Percent of of Total City of Total CityTaxable Taxable Taxable TaxableAssessed Assessed Assessed AssessedTaxpayer Value Rank Value Value Rank ValueCollege Station Hospital LP 61,308,070$ 1 1.24% 15,907,526$ 8 0.83%C.B.L. & Associates (Post Oak Mall) 55,651,375 2 1.12% 50,059,180 1 2.62%Weinberg, Israel & David Alkosser 42,388,230 3 0.86% 23,349,060 4 1.22%Woodland of College Station LP 36,846,840 4 0.74%ACC OP (Callaway Villas) LP 30,736,980 5 0.62%Commonwealth Austin CH LP 30,628,460 6 0.62%Walmart/Sam's 28,803,300 7 0.58% 18,456,600 6 0.97%University Heights - College Station LP 28,789,920 8 0.58%Verizon Communications, Inc. 28,277,520 9 0.57% 34,424,740 2 1.80%SCI Gateway at CS Fund LLC Etal 27,246,180 10 0.55%Scott & White Hospital/Clinic21,756,530 5 1.14%W9/JP-M Real Estate Ltd24,417,115 3 1.28%WHG Treehouse L.P.11,850,000 10 0.62%Lane College Station Ltd.12,500,000 9 0.65%University Commons16,279,705 7 0.85%370,676,875$ 7.48% 229,000,456$ 11.98%Source: Brazos County Appraisal DistrictNotes: Verizon Communications was called GTE Southwest in fiscal year 1999. Weinberg, Israel & David Alkosser was called Alkosser, David Etal in fiscal year 1999. College Station Hospital, LP was called Columbia BVMC/BVMC, Inc. in fiscal year 1999.1999CITY OF COLLEGE STATION, TEXASPRINCIPAL PROPERTY TAXPAYERSCURRENT YEAR AND NINE YEARS AGO2008131
Fiscal Year Taxes Levied CollectionsEnded for the Percentage in Subsequent PercentageSept 30 Fiscal Year Amount of Levy Years Amount of Levy1999 $ 8,292,212 $ 8,235,356 99.31% $ 51,642 $ 8,286,998 99.94%2000 9,068,352 9,000,090 99.25% 59,062 9,059,152 99.90%2001 9,939,852 9,835,960 98.95% 93,658 9,929,618 99.90%2002 11,892,629 11,735,174 98.68% 147,652 11,882,826 99.92%2003 13,010,508 12,740,869 97.93% 257,029 12,997,898 99.90%2004 14,092,814 13,974,666 99.16% 103,884 14,078,550 99.90%2005 15,270,852 15,160,102 99.27% 96,924 15,257,026 99.91%2006 16,162,073 15,938,981 98.62% 122,602 16,061,583 99.38%2007 17,818,419 17,697,220 99.32% 7,345 17,704,565 99.36%2008 19,973,882 19,773,036 98.99% - 19,773,036 98.99%Sources: City Of College Station and Brazos County Tax OfficeFiscal Year of the LevyCITY OF COLLEGE STATION, TEXASLAST TEN FISCAL YEARSPROPERTY TAX LEVIES AND COLLECTIONSCollected within theTotal Collections to Date132
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007Utilities 13,770$ 11,191$ 12,319$ 13,645$ 15,169$ 14,929$ 14,943$ 16,684$ 19,336$ 22,403$ Construction 5,821 5,338 4,465 5,805 6,240 5,500 6,510 12,095 13,908 15,816 Manufacturing 4,271 6,306 6,602 6,656 7,950 7,921 9,323 13,311 13,985 13,200 Wholesale Trade 4,728 4,460 5,419 7,069 18,918 12,332 11,078 13,062 28,686 30,387 Retail Trade 453,352 465,847 482,261 482,859 486,828 510,727 543,582 576,915 596,791 664,649 Information 3,338 2,464 2,613 2,330 10,755 15,312 16,102 14,409 14,079 12,148 Finance and Insurance 234 227 65 67 60 55 119 130 216 541 Real Estate and Rental/Leasing - - - - 10,462 11,032 12,258 12,034 15,689 16,249 Professional, Scientific and Tech Services - - - - 7,627 7,660 8,652 8,697 9,530 11,070 Administrative, Support, Waste Mgmt, Remediation - - - - 12,866 14,703 14,667 15,134 16,462 15,054 Educational Services - - - - 98 93 22,981 26,252 29,592 32,502 Health Care and Social Assistance - - - - 986 1,721 1,951 2,547 2,873 4,042 Arts, Entertainment and Recreation 3,511 3,034 3,071 3,588 5,382 5,480 6,174 6,781 6,949 7,399 Accommodation and Food Services 92,728 105,493 113,010 116,051 129,054 137,440 146,017 157,217 169,714 185,724 Other Services 74,518 80,432 88,939 90,845 19,312 20,774 16,690 14,024 12,877 13,651 Total 656,271$ 684,792$ 718,764$ 728,915$ 731,707$ 765,679$ 831,047$ 889,292$ 950,687$ 1,044,835$ City direct sales tax rate 1.50% 1.50% 1.50% 1.50% 1.50% 1.50% 1.50% 1.50% 1.50% 1.50%Source: Texas State Comptroller of Public AccountsNotes: Taxable sales information is not available on a fiscal-year basis. The state converted from reporting SICS classification of industries to NAICS classification of industries effective with the reporting year 2002.Data reported for the years 1998 through 2001 is classified under the old SICS codes and every effort was made to compare like industries. The categories listed with no sales for 1997 through 2001 are includedin Other Services for those years. This report includes data only from holders of sales tax permits. If fewer than four outlets reported in a quarter, the data is omitted as required by state disclosure laws.Calendar YearCITY OF COLLEGE STATION, TEXASTAXABLE SALES BY CATEGORYLAST TEN CALENDAR YEARS(in thousands of dollars)133
City Brazos State of Fiscal Year Direct Rate County Texas1999 1.50% 0.50% 6.25%2000 1.50% 0.50% 6.25%2001 1.50% 0.50% 6.25%2002 1.50% 0.50% 6.25%2003 1.50% 0.50% 6.25%2004 1.50% 0.50% 6.25%2005 1.50% 0.50% 6.25%2006 1.50% 0.50% 6.25%2007 1.50% 0.50% 6.25%2008 1.50% 0.50% 6.25%Source: Texas State Comptroller of Public AccountsCITY OF COLLEGE STATION, TEXASDIRECT AND OVERLAPPING SALES TAX RATESLAST TEN FISCAL YEARS134
Number Percentage Tax Percentage Number Percentage Tax Percentageof Outlets of Total Liability of Total of Outlets of Total Liability of TotalRetail trade 941 57.57% 8,191$ 83.21% 1,188 55.67% 12,756$ 81.39%Services 477 29.17% 732 7.43% 406 19.03% 1,032 6.59%Wholesale trade 36 2.20% 454 4.61% 62 2.91% 456 2.91%Utilities, transportation, communications 19 1.16% 257 2.61% 19 0.89% 337 2.15%Manufacturing 47 2.87% 64 0.65% 64 3.00% 198 1.26%Construction 52 3.18% 87 0.89% 101 4.73% 237 1.51%Agriculture, forestry, and fishing 43 2.63% 53 0.54% 37 1.73% 114 0.72%Finance, insurance, real estate 11 0.67% 4 0.04% 56 2.62% 252 1.61%All other outlets 9 0.55% 1 0.01% 201 9.42% 291 1.86%Total 1,635 100.00% 9,843$ 99.99% 2,134 100.00% 15,673$ 100.00%Source: Texas State Comptroller of Public AccountsNotes: Due to confidentiality issues, the names of the ten largest revenue payers are not available. The categories presented are intended to provide alternative information regarding the sources of the City's revenue.Calendar year 2007 is the most recent year for which data is available.Tax liability information is not available on a fiscal-year basis.The category labeled "All other outlets" is higher than normal in 2007 due to the State Comptroller's conversion from SIC classification codes to NAICS classification codes. The State reports in SIC classifications andnew outlets added since the conversion began are labeled within the SIC classification of "other". Calendar Year 1998 Calendar Year 2007CITY OF COLLEGE STATION, TEXASSALES TAX REVENUE PAYERS BY INDUSTRYCALENDAR YEARS 1998 AND 2007(dollars are in thousands)135
Public PropertyGeneral Finance Utility Utility Revenue Utility Revenue Total PercentageFiscal Obligation Certificates of Contractual Revenue Capital Certificates General Primary of Personal PerYear Bonds Obligation Obligations Bonds Leases of Obligation Obligation Bonds Government Income Capita1999 32,750,000$ 6,350,000$ 405,000$ 35,965,000$ -$ -$ -$ 75,470,000$ - 1,147$ 2000 38,700,000 17,955,000 - 42,870,000 - - - 99,525,000 - 1,466 2001 39,375,000 20,595,000 - 63,185,000 - - - 123,155,000 11.96% 1,710 2002 41,665,000 33,280,000 - 78,235,000 - - - 153,180,000 - 2,022 2003 43,170,000 32,525,000 - 79,680,000 - - - 155,375,000 - 1,984 2004 47,085,000 34,705,000 - 75,655,000 - - - 157,445,000 - 1,963 2005 49,800,000 30,195,000 - 79,215,000 - 8,910,000 - 168,120,000 - 2,052 2006 53,835,000 34,905,000 - 91,460,000 - 8,580,000 - 188,780,000 15.39% 2,244 2007 55,720,000 33,500,000 - 105,215,000 - 8,240,000 - 202,675,000 15.49% 2,330 2008 60,695,000 39,965,000 - 99,560,000 - 23,820,000 - 224,040,000 12.90% 2,481 Sources: City of College Station (outstanding debt, per capita) and the U.S. Census Bureau, American Community Survey (personal income)Notes: Details regarding the city's outstanding debt can be found in the notes to the financial statements.Personal income information for the City of College Station is only available for calendar years 2000, 2005 - 2008.A portion of the Governmental Certificates of Obligation are related to electric and sewer utility projects as follows: FY04 orginal issue $9,415,000; outstanding FY 08 - $7,895,000. FY08 orginal issue $15,925,000Governmental Activities Business-Type ActivitiesCITY OF COLLEGE STATION, TEXASRATIOS OF OUTSTANDING DEBT BY TYPELAST TEN FISCAL YEARS136
General Percentage ofObligation Less Debt Service Net Actual TaxableFiscal Year Bonds Cash Funds Bonded Debt Value of Property Per Capita1999 32,750,000$ 3,472,280$ 29,277,720$ 1.53% 4452000 38,700,000 4,202,042 34,497,958 1.66% 5082001 39,375,000 1,722,254 37,652,746 1.66% 5232002 41,665,000 1,287,038 40,377,962 1.65% 5332003 43,170,000 659,180 42,510,820 1.59% 5432004 47,085,000 585,336 46,499,664 1.56% 5802005 49,800,000 912,353 48,887,647 1.50% 5972006 53,835,000 1,645,563 52,189,437 1.45% 6222007 55,720,000 2,060,709 53,659,291 1.35% 6172008 60,695,000 2,573,421 58,121,579 1.17% 644Source: City of College StationNotes: Details regarding the City's outstanding debt can be found in the notes to the financial statements.CITY OF COLLEGE STATION, TEXASRATIOS OF NET GENERAL BONDED DEBT OUTSTANDINGLAST TEN FISCAL YEARS137
Estimated Estimated Share
Debt Percentage of Direct and
Governmental Unit Outstanding Applicablea Overlapping Debt
Debt repaid with property taxes
College Station I.S.D. 110,435,000$ 96.31% 106,359,949$
Brazos County 97,680,000 49.26% 48,117,168$
Bryan I.S.D. 136,595,000 5.39% 7,362,471$
Other debt
College Station I.S.D. 543,410 96.31% 523,358$
Brazos County - 49.26% -$
Bryan I.S.D. Capital Lease 1,510,000 5.39% 81,389$
Subtotal, overlapping debt 162,444,335$
City direct debt 100,660,000$
Total direct and overlapping debt 263,104,335$
Sources: Debt outstanding data provided by each governmental unit. Assessed value data used to estimate applicable
percentages provided by the Brazos County Appraisal District.
Notes: Overlapping governments are those that coincide, at least in part, with the geographical boundaries of the
City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by
the residents and businesses of College Station. This process recognizes that, when considering the City's ability to
issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into
account. However, this does not imply that every taxpayer is a resident and therefore responsible for repaying the debt
of each overlapping government.
a For debt repaid with property taxes, the percentage of overlapping debt is estimated using taxable assessed property
values. Applicable percentages were estimated by determining the portion of another governmental unit's taxable
assessed value that is within the City's boundaries and dividing it by each unit's total assessed value.
CITY OF COLLEGE STATION, TEXAS
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF SEPTEMBER 30, 2008
138
The City has no general obligation legal debt limit other than a ceiling on the ad valorem
tax rate as specified by the State of Texas. The prescribed maximum is $2.50 per $100
at 100% valuation.
CITY OF COLLEGE STATION, TEXAS
LEGAL DEBT MARGIN INFORMATION
SEPTEMBER 30, 2008
139
Utility Less: Net Average MaximumService Operating Available Debt Service Annual Debt Service AnnualFiscal Year Charges Expenses Revenue Total Coverage Total Coverage1999 49,101,104$ 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 13,678,118 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 2.332006 80,787,029 54,432,847 26,354,182 6,423,582 4.10 9,163,574 2.882007 87,911,120 63,514,543 24,396,577 7,389,770 3.30 10,408,958 2.34 2008 99,610,432 73,195,783 26,414,649 8,620,759 3.06 12,245,949 2.16 Source: City of College StationNotes: Details regarding the City's outstanding debt can be found in the notes to the financial statements. Operating expenses do not include interest, depreciation, or amortization expense.The coverage ratios presented in this schedule are formulas required by bond resolutions. The bond resolutions require that net revenues equal at least 1.4 times the average annual debt service on all revenue bonds and other indebtedness payable from those revenues. The bond resolutionsalso require that net revenues equal at least 1.25 times the maximum annual debt service on all revenue bonds and other indebtedness payablefrom those revenues.Utility Revenue BondsPLEDGED-REVENUE COVERAGECITY OF COLLEGE STATION, TEXASLAST TEN FISCAL YEARS140
Personal Income
Calendar (thousands Per Capita Unemployment
Year Population of dollars)Personal Income Rate
1998 63,852 -$ -$ 1.8
1999 65,797 - - 1.8
2000 67,890 1,029,891 15,170 1.6
2001 72,020 - - 1.7
2002 75,752 - - 2.0
2003 78,309 - - 2.4
2004 80,214 - - 2.0
2005 81,930 1,226,974 14,976 3.7
2006 84,116 1,308,384 15,555 3.9
2007 86,982 1,736,221 19,961 3.8
Sources: City of College Station Planning Division (population)
U. S. Census Bureau, American Community Survey (personal income)
Texas Workforce Commission (unemployment rate)
Notes: In 2005, the Bureau of Labor Statistics introduced a new methodology for calculating
unemployment rates. Along with the new calculation method, Robertson and Grimes county
were added to the Bryan/College Station MSA. The net result is an increase in the area's
unemployment rate.
Personal income information for the City of College Station is only available for calendar
years 2000, 2005, 2006, and 2007.
CITY OF COLLEGE STATION, TEXAS
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN CALENDAR YEARS
141
2008 2000
Employer Employer
Brazos County Brazos County
Bryan ISD Bryan ISD
City of Bryan City of Bryan
City of College Station City of College Station
College Station ISD College Station ISD
Reynolds & Reynolds (1)Reliant Building Products Inc
Sanderson Farms Inc Sanderson Farms Inc
St Joseph Hospital St Joseph Hospital
Texas A&M University Texas A&M University
Wal-Mart Associates Inc Wal-Mart Associates Inc
Source: Texas Workforce Commission, Labor Market/Career Information
Department, Research Valley Partnership
(1) Recent name change from Universial Computer Systems
Notes: Data includes principal employers in Brazos County.
Employers are listed in alphabetical order and do not reflect any ranking.
The TWC ranking and number of employees data is confidential. The
TWC began tracking this data in 2000 therefore no earlier data is available.
PRINCIPAL EMPLOYERS
CURRENT YEAR AND EIGHT YEARS AGO
CITY OF COLLEGE STATION, TEXAS
142
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008Function/ProgramGeneral Government 33.9 33.2 37.2 39.7 36.8 38.5 41.9 37.8 58.5 71.0Police 118.5 132.3 139.4 140.3 143.4 146.0 144.4 155.1 163.5 168.5Fire 87.0 91.3 98.1 103.9 105.9 108.5 111.4 110.6 119.0 125.0Public Works 87.1 88.3 95.0 104.4 104.5 106.8 112.2 112.6 114.5 106.5Parks and Recreation 103.8 106.8 111.3 115.4 120.1 116.2 120.0 119.8 123.5 131.0Planning and Development Services 27.4 29.2 27.8 29.0 28.3 28.5 25.8 27.1 24.5 34.0Information Services 40.3 41.5 39.2 39.1 40.0 40.3 37.5 36.6 28.5 33.0Fiscal Services 51.0 53.2 54.3 53.1 61.1 59.8 64.2 70.1 71.0 72.5Electric 44.1 48.8 57.1 57.5 56.9 53.4 56.6 56.0 56.5 58.0Water / Sewer Services 66.0 65.4 64.6 66.2 66.0 64.0 69.1 71.8 71.0 67.5BVSWMA 26.3 29.3 27.8 28.8 28.3 27.3 24.4 24.0 22.0 25.5Captial Project n/a n/a n/a n/a n/a n/a n/a n/a 10.0Total 685.4 719.3 751.8 777.4 791.3 789.3 807.5 821.5 852.5 902.5Source: City of College StationNotes: Full-time-equivalent employees include full time, part time, and seasonal/temporary employees on staff as of September 30.Capital Projects added in FY 2008.Full-Time-Equivalent Employees as of Sept 30CITY OF COLLEGE STATION, TEXASFULL-TIME-EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAMLAST TEN FISCAL YEARS143
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008Function/ProgramGeneral Government Open records requests 350 250 250 147 62 103 72 199 199 155 Economic development prospects * 29 17 15 29 17 20 31 19 18 Code enforcement cases processed * 3,503 4,209 4,525 6,280 9,341 2,848 5,984 4,838 5,148 Non-profit agencies/contracts monitored 11 8 8 12 11 10 9 13 7 10 Applicants receiving homebuyers assistance 7 22 12 25 14 16 2 9 6 3Police DUI/DWI arrests 551 522 351 311 341 418 387 414 493 458 Citations processed 35,752 40,712 44,305 36,945 43,407 42,957 39,416 34,134 38,046 10,384 Uniform patrol calls handled 47,662 50,459 50,034 56,388 61,821 60,405 57,605 60,159 58,303 57,661 Average response time on high priority calls 5:52 mins 6:10 mins 5:53 mins 6:01 mins 6:28 mins 5:58 mins 6:09 mins 6:15 mins 6:17 mins 6.06 mins Criminal investigation new cases assigned 2,010 2,041 1,810 1,970 2,292 2,259 2,300 2,368 2,256 2,635Note: In FY08 an e-citation program was implemented thus reducing the number of paper citations processed.Fire Fire incidents (fire, rescue, and haz mat) * 1,607 1,603 1,653 1,455 1,554 1,792 1,743 1,832 1,992 Business safety inspections 973 777 1,128 900 1,014 1,410 1,138 828 1,018 947 Parking citations issued 26,790 * 12,324 18,500 18,034 16,587 11,900 8,452 7,238 9,460 Community enhancement cases 7,352 9,224 12,077 12,550 11,637 15,086 7,016 7,384 8,631 11,885 EMS incidents * 2,495 2,704 2,554 2,754 2,800 3,241 3,048 3,773 4,718 EMS unit responses * 4,556 4,428 4,568 4,687 4,900 4,930 5,276 5,476 5,369 Notes: FY99 fire incidents include fire, rescue, hazardous material, and EMS incidents (EMS operations were assigned a separate division in FY00).Public Works Street overlay lane miles 23 21 12 1 20 18 19 19 19 15 Potholes repaired * * * * * * 24,696 24,778 21,506 20,546 Curb miles swept * * * * * * 6,338 7,235 6,040 6,955 Sign, marking, signal work orders 1,894 3,008 2,562 2,709 3,472 3,270 2,898 2,557 2,617 2,880Parks and Recreation Pavilion rentals 398 355 340 353 342 314 221 399 338 395 Adult participants in City leagues 9,787 12,574 9,480 10,642 8,529 8,307 10,774 822 611 786 Youth participants in City leagues 2,347 2,060 1,887 2,684 1,977 2,690 2,520 2,842 2,946 4,183 Special event participants 185,630 159,457 22,718 123,743 188,980 188,429 201,256 197,805 185,002 170,193 Instructional participants 3,987 2,912 3,148 3,546 3,447 3,581 3,579 3,075 3,432 3,538 Pool customers 98,958 114,319 119,329 130,113 142,154 145,879 132,549 146,805 128,206 142,605 Conference center customers 85,240 87,372 88,239 74,320 70,728 81,289 85,720 70,494 66,950 79,360 Lincoln center participants 51,947 49,071 67,665 68,919 72,794 81,629 82,624 98,869 100,952 93,501 Teen center participants 4,812 17,219 11,178 12,465 13,446 14,582 17,500 9,958 15,798 15,259 Notes: FY01 special event participants do not include Christmas in the Park counts. Adult participants in City leagues was changed in FY06 to adult teams participating in City leagues. FY05 pavilion rentals had the following changes: Thomas Park pavilion rentals were removed (no longer charging a fee) and W.A. Tarrow basketball pavilion was added. In FY06 Crompton Park pavilion was added to rentals.CITY OF COLLEGE STATION, TEXASOPERATING INDICATORS BY FUNCTION/PROGRAMLAST TEN FISCAL YEARSFISCAL YEAR144
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008Function/ProgramPlanning and Development Services Permits processed * * * 6,728 6,604 6,685 6,500 6,575 7,583 6,647 Building inspections performed 9,266 10,045 11,046 14,671 13,364 13,435 13,297 13,069 13,398 13,814Electric Number of connections 28,433 26,169 27,113 33,386 35,421 35,307 36,284 37,590 38,519 37,777 Residential job orders * 1,740 1,825 1,942 2,505 2,134 1,904 1,422 1,714 2,342 Customer service job orders * 2,022 2,079 2,144 2,078 2,496 1,561 1,678 1,717 1,928 Average monthly consumption (KWH) 47,217,068 51,604,230 51,409,703 52,466,218 54,820,470 55,673,526 60,413,524 61,910,063 60,766,805 64,724,128 Avg number of outages per customer 1.40 1.64 1.22 1.00 1.33 0.72 0.92 0.31 0.12 0.27Water Number of connections 20,165 21,017 15,524 23,210 29,358 31,038 32,266 33,491 34,763 37,075 New services completed * * 1,289 1,440 1,560 1,217 773 931 1,027 1,235 Average monthly consumption (MGW) 316,005 292,000 295,875 262,541 253,259 236,355 283,429 317,438 293,246 324,012 Water meters tested * * 893 950 1,025 768 732 1,254 1,174 732 Avg number of outages per customer * * * 0.190 0.003 0.160 0.016 0.039 0.013 0.007Sewer Number of connections * * * 28,399 27,977 28,594 29,694 31,051 32,034 34,743 Average daily sewage treatment 5,498 5,881 6,158 6,669 6,807 6,808 6,220 5,911 6,502 6,626 (thousands of gallons) New services completed * * 1,139 1,400 1,540 890 571 646 521 781 Avg number of stoppages per customer * * * 0.015 0.0001 0.003 0.003 0.003 0.003 0.002 Sanitation Number of users (units) 23,200 24,360 28,894 23,947 28,215 28,594 28,399 27,181 28,112 29,533 Residential tons collected 14,693 14,999 15,614 17,710 18,057 20,353 23,535 24,964 27,556 22,191 Residential tons recycled 925 1,129 978 941 826 1,082 923 983 1,060 1,199 Commercial tons collected 26,730 30,951 31,376 32,364 33,402 35,355 35,114 35,122 38,402 38,709Parking garage Active contract customers * * * * * * 449 432 472 464 Hourly cash customers * * * 65,612 106,935 97,904 127,608 108,893 109,028 107,584 Notes: Parking garage opened to customers in February 2002.Utility Customer Service Payments processed 326,166 369,001 379,439 388,579 404,742 408,348 401,891 413,088 423,299 443,766 Incoming calls 85,583 79,741 79,747 79,514 82,018 82,536 82,234 85,728 85,842 97,121 Meters read 459,270 482,920 501,175 525,412 552,949 577,773 598,660 618,676 640,554 670,913Source: City of College Station various departments* Data not measured for fiscal year indicated.FISCAL YEARCITY OF COLLEGE STATION, TEXASOPERATING INDICATORS BY FUNCTION/PROGRAM - ContinuedLAST TEN FISCAL YEARS145
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008Function/ProgramPolice Patrol units 24 25 25 25 25 25 26 26 29 29 Jail capacity 17 17 17 17 17 17 17 17 17 17 Note: The patrol units figure includes 1 K-9 unit.Fire stations 4 4 4 4 4 4 4 4 4 4 Note: The Fire Department operates an additional fire station located at the airport.Public Works Streets (linear miles) 711 711 711 711 733 353 385 395 429 438 Sidewalks (miles) 30 91 89 89 89 89 97 100 100 100 Traffic signals 49 53 55 57 60 62 62 62 65 66 Storm sewers (miles) * * * * * * * 72 72 72 Notes: Street measurement changed from lane miles to linear miles in FY04. Storm sewer mileage includes both underground pipes and valley gutters.Parks and Recreation Acreage 1,106 1,127 1,146 1,134 1,214 1,217 1,248 1,274 1,289 1,306 Playunits 35 35 35 35 35 35 35 46 48 47 Softball/baseball fields 19 16 19 19 19 19 25 32 32 35 Soccer fields 22 13 13 19 19 19 26 31 31 29 Jogging/walking trails 19 19 20 20 22 22 26 27 28 29 Community centers 3 3 3 3 3 3 3 3 3 3 Pools 3 3 3 3 3 3 3 3 3 3 Pavilions (rentable) 5 5 5 5 5 5 6 6 7 7 Notes: Some parks have multiple playunits. Softball/baseball fields include practice fields.Electric Maximum capacity (megawatts) 230 250 255 255 255 255 280 260 355 355 Number of substations 3 4 4 4 4 4 4 5 5 5 Distribution lines (miles) 285 290 333 400 414 414 450 394 411 411 Water Water mains (miles) 245 262 280 294 311 317 341 365 367 381 Fire hydrants * * * * * 2,070 2,165 2,232 2,380 2,453 Number of wells 5 5 5 6 6 6 6 8 8 8 Wells storage capacity 19,500 19,500 20,000 19,000 26,000 26,000 28,000 23,000 23,000 23,000 (thousands of gallons per day)Sewer Sanitary sewer lines (miles) 220 232 243 252 262 264 271 279 285 301 Treatment capacity 9,500 9,500 9,500 11,500 11,500 11,500 11,500 11,500 11,500 11,500 (thousands of gallons per day)Sanitation Collection trucks 21 21 21 22 23 24 24 24 25 25 Residential collection containers * * * * 14,413 15,207 15,958 16,647 18,135 19,549 Commercial collection containers 1,132 1,205 1,230 1,383 1,407 1,511 1,545 1,569 1,594 1,619Fleet number of vehicles * * * * 585 600 613 627 651 643 Source: City of College Station* Data not measured for fiscal year indicated.FISCAL YEARCITY OF COLLEGE STATION, TEXASCAPITAL ASSET STATISTICS BY FUNCTION/PROGRAMLAST TEN FISCAL YEARS146