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HomeMy WebLinkAboutFY 2009-2010 -- Comprehensive Annual Financial Report CITY OF COLLEGE STATION, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010 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, 2010 Table of Contents Page i INTRODUCTORY SECTION Letter of Transmittal ................................................................................................................................ vi Organizational Chart ............................................................................................................................. xiii Principal City Officials ........................................................................................................................... xiv GFOA Certificate of Achievement for Excellence in Financial Reporting .............................................. xv FINANCIAL SECTION Independent Auditors' Report ................................................................................................................. 1 Management’s Discussion and Analysis (Unaudited) ............................................................................. 3 Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Assets .......................................................................................................... 23 Statement of Activities ............................................................................................................. 24 Fund Financial Statements: Balance Sheet – Governmental Funds ................................................................................... 26 Reconciliation of Governmental Funds Balance Sheet to the Statement of Net Assets ................................................................................................ 27 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds ............................................................................... 28 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities ............................... 29 Statement of Net Assets – Proprietary Funds ......................................................................... 30 Statement of Revenues, Expenses, and Changes in 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 ........................................ 73 CITY OF COLLEGE STATION, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010 Table of Contents Page ii Schedule of Funding Progress – City of College Station Other Post Employment Benefits Plan........................................................................................... 74 Schedule of Revenues, Expenditures, and Changes in Fund Balances, Budget and Actual – General Fund ............................................................................... 75 Supplementary Information: Combining and Individual Fund Statements and Schedules: Combining Balance Sheet – General Fund(s) ........................................................................ 78 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – General Fund(s) ...................................................................................... 80 Schedules of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual: General Fund(s) General Fund .............................................................................................................. 82 Economic Development Fund .................................................................................... 83 Parks Xtra Education Fund ........................................................................................ 84 Efficiency Time Payment Fee Fund .......................................................................... 85 New Convention Center Fund .................................................................................... 86 Business Park Fund ................................................................................................... 87 Combining Balance Sheet – Nonmajor Governmental Funds ................................................ 90 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Governmental Funds .............................................................. 92 Schedules of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual: Special Revenue Funds: Court Technology Fee Fund ....................................................................................... 94 Court Security Fee Fund ............................................................................................ 95 Juvenile Case Manager Fee Fund ............................................................................. 96 Police Seizure Fund ................................................................................................... 97 American Recovery and Reinvestment Act (ARRA) Fund ......................................... 98 CITY OF COLLEGE STATION, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010 Table of Contents Page iii Traffic Safety Fund ..................................................................................................... 99 Memorial Cemetery Fund ......................................................................................... 100 Memorial Cemetery Perpetual Care Fund ............................................................... 101 Cemetery Perpetual Care Fund ............................................................................... 102 Hotel Occupancy Tax Fund ...................................................................................... 103 Community Development Fund ................................................................................ 104 Wolf Pen Creek Tax Increment Financing District Fund .......................................... 105 Parks Escrow Fund .................................................................................................. 106 Drainage Projects Fund ............................................................................................ 107 Capital Projects Funds: General Government Projects .................................................................................. 108 Parks and Recreation Projects ................................................................................. 109 Streets Projects ........................................................................................................ 110 Debt Service .................................................................................................................... 111 Nonmajor Enterprise Funds: Combining Statement of Net Assets ............................................................................... 114 Combining Statement of Revenues, Expenses, and Changes in Net Assets ............................................................................................................ 115 Combining Statement of Cash Flows ............................................................................. 116 Internal Service Funds: Combining Statement of Net Assets ............................................................................... 118 Combining Statement of Revenues, Expenses, and Changes in Net Assets ............................................................................................................ 120 Combining Statement of Cash Flows ............................................................................. 122 STATISTICAL SECTION Net Assets by Component .................................................................................................................. 127 Changes in Net Assets ........................................................................................................................ 128 CITY OF COLLEGE STATION, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2010 Table of Contents Page iv Program Revenues by Function/Program ........................................................................................... 130 Fund Balances, Governmental Funds ................................................................................................ 131 Changes in Fund Balances, Governmental Funds ............................................................................. 132 Tax Revenue by Source, Governmental Funds .................................................................................. 134 Assessed Value and Estimated Actual Value of Taxable Property .................................................... 135 Direct and Overlapping Property Tax Rates ....................................................................................... 136 Principal Property Taxpayers .............................................................................................................. 137 Property Tax Levies and Collections .................................................................................................. 138 Taxable Sales by Category ................................................................................................................. 139 Direct and Overlapping Sales Tax Rates ............................................................................................ 140 Sales Tax Revenue Payers by Industry .............................................................................................. 141 Ratios of Outstanding Debt by Type ................................................................................................... 142 Ratios of Net General Bonded Debt Outstanding ............................................................................... 143 Direct and Overlapping Governmental Activities Debt ........................................................................ 144 Legal Debt Margin Information ............................................................................................................ 145 Pledged-Revenue Coverage ............................................................................................................... 146 Demographic and Economic Statistics ............................................................................................... 147 Principal Area Employers .................................................................................................................... 148 Full-Time-Equivalent City Government Employees by Function/Program ......................................... 149 Operating Indicators by Function/Program ......................................................................................... 150 Capital Asset Statistics by Function/Program ..................................................................................... 152 v CITY OF COLLEGE STATION -1III!IIii.........___....._________~ Home ofTexas A&M Universityc __---------...................­ April 18, 2011 Honorable Mayor, Members of the City Council, and Citizens of the City of College Station College Station, Texas The City Manager and the Fiscal Services Department are pleased to submit the Comprehensive Annual Financial Report for the City of College Station, Texas (the "City") for the fiscal year ended September 30,2010 . 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 and activities of the City government. Responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the City. To the best of our knowledge and belief, the data is accurate in all material aspects , and is organized in a manner designed to fairly present the financial position and results of operations of the City as measured by the financial activity of its various funds . We also believe that all disclosures necessary to enable the reader to gain the maximum understanding of the City's financial affairs have been included. Ingram , Wallis & Co, P .C ., Certified Public Accountants, has issued an unqualified ("clean ") opinion on the city's financial statements for the year ended September 30, 2010. The independent auditor's report is located at the front of the financial section of this report. Management's discussion and analysis (MD&A) immediately follows the independent auditor's report and provides a narrative introduction, overview, and analysis of the ba s ic financial s tatement s . MD&A c o mpl ement s thi s letter of transmittal and should be read in con j unction with it. CITY PROFILE Location Th e City of College Statio n, incorp ora ted in 19 38 , is located in Bra zo s C ounty in Eas t Central Texas, approxim ately 140 mile s north of the G ulf of Me xico , approx imate ly 90 m i le s northwest of Hou ston, approximately 165 miles south of Dallas and approx imately 100 mile s ea st of Austin, in an area referred to as the Brazos Valley . The City currently has a land area of 47 .2 square miles v:i P O . Box 9960 1101 T EXAS A VEN E C O UEG ST AT fON · TEXA S · 77 84 2 · 979 .764. 350 7 www.cstx.gov vii and a current estimated population of 94,347 as of September 2010. The City has the power, by state statute, to extend its corporate limits by annexation, which it has done periodically. Structure The City of College Station is a home rule city operating under the Council-Manager form of government. The City Council is composed of a mayor and six council members, elected at large, who enact local laws, determine policies and adopt the annual budget. The City Manager is appointed by the City Council and is responsible for the daily management of the City. The Basic Financial Statements of the City include all government activities, organizations and functions for which the City is financially responsible as defined by the Governmental Accounting Standards Board. Based on these criteria, no other governmental organizations are included in this report. For additional information on the reporting entity, refer to Note I-A in the basic financial statements. Services Provided The City provides its citizens those services that have proven to be necessary and meaningful and which the City can provide at the least cost. Major services provided under general government and enterprise functions are: police and fire protection, emergency ambulance service, electric services, water and wastewater services, sanitation services, parks and recreation facilities, library services, street improvements and general administrative services. Internal services of the City, accounted for on a cost reimbursement basis, are fleet services, equipment replacement, risk management, employee health and disability coverage. Accounting System and Budgetary Control The City's accounting records for general governmental operations are maintained on a modified accrual basis, with the revenues recorded when available and measurable, and expenditures recorded when the services or goods are received and the liabilities incurred. Accounting records for the City's utilities and other proprietary activities are maintained on a full accrual basis with revenues recorded when earned and expenses recorded as goods or services are provided to the user. In developing and maintaining the City's accounting system, consideration is given to the adequacy of the internal control structure. Internal accounting controls are designed to provide reasonable, but not absolute, assurance regarding: (1) the safeguarding of assets against loss from unauthorized use or disposition, and (2) the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived, and (2) the evaluation of costs and benefits requires estimates and judgments by management. All internal accounting control evaluations occur within the above framework. We believe that the City's internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. The City charter provides that the City Council shall adopt the annual budget prepared by City Management. This budget is reviewed by the City Council and is formally adopted by the passage of a budget ordinance. The City Manager is authorized to transfer budgeted amounts between line items and departments within any fund; however, City Council must authorize transfers between General Fund departments and all increases in total spending in any fund. Budgetary control over spending is at the department level within the City's General Fund and at the individual fund appropriation in all other funds. The City's departments have direct access to review budgets as often as necessary. Monthly closing reports are prepared and reviewed by viii management showing revenues, expenditures, and balance sheets. Summarized financial reports and budget reports are provided to the City Council on a quarterly basis. FACTORS AFFECTING FINANCIAL CONDITION Economic Conditions College Station has felt the impacts of the slowing national and state economies. The downturn in the economy has resulted in lower revenues and the need to make budget reductions as a result of that lower revenue. Despite the slowdown, some growth has continued to occur locally. The concentration of relatively stable employment sectors such as government and higher education contribute to the steady growth College Station has experienced over the last several years. This growth provides some of the resources needed to limit reductions in service levels to the citizens and visitors of College Station. Challenges remain as traditionally strong revenue streams slowed significantly, and even declined. In 2009 sales tax collections in College Station fell for the first time in many years. This is consistent with the recent slowdown in the economy. In fiscal year 2010, sales tax revenue was down by 0.6 percent over fiscal year 2009. Sales tax revenues are anticipated to be flat in fiscal year 2011, and then see modest increases in future years. Despite the slowdown in the economy, College Station continued to see development. There were 464 new housing starts during 2010. Total ad valorem assessed valuation increased by approximately $367 million or approximately 7 percent for fiscal year 2010 over fiscal year 2009. Commercial development continued to occur with new and redevelopment construction, including a few significant new developments breaking ground. The City of College Station’s major asset is being the home of Texas A&M University (TAMU). TAMU is located on an approximately 5,200 acre campus within the City. TAMU has a significant economic impact on the City, contributing over a billion dollars annually to the local economy. TAMU has consistently ranked among the top 50 universities in the United States. Each year, TAMU's approximately 2,500 faculty members conduct an estimated $450 million worth of sponsored research projects. Student enrollment at TAMU was 49,129 as of September 2010. TAMU employs more than 20,000 full-time and part-time staff. The impact of possible budget reductions from the State of Texas will be monitored to determine how they may impact the local economy, and the City of College Station. 2010 Major Accomplishments Below are highlight accomplishments for 2010. • Maintaining a Balanced Budget in Unsure Economic conditions: The organization once again cut expenditures in 2010 by the amount of $3,393,098 to address reductions in revenue. In addition to a hiring freeze, departments were challenged to look at their operations and identify areas for cost savings. The Budget Office worked hard to provide constant support to the departments to stay within their reduced budgets while producing a balanced budget for 2011. • Reducing Crime and the Fear of Crime: The Police Department has worked diligently and been able to reduce property crimes significantly from last year. Burglary is down 34% in 2010. A significant amount of time was spent targeting high accident locations and the motor vehicle accident rate has declined 17% from last year. ix • Updating Plans and Regulations: The updates of the following plans ensures that the City’s goals and strategies are consistent with the community vision and sets the stage for development activities and public expenditures to further promote these goals. o Bicycle, Pedestrian, and Greenways Master Plan, the first update of these plans in nearly 10 years. o Second phase of updating the City’s Subdivision Regulations, the first comprehensive update to these regulations in 40 years. o Water and Wastewater Master Plans o Parks and Recreation Master Plan update to be completed next year • Economic and Community Development – Examples of projects that the Economic and Community Development staff directly encouraged or facilitated are: o Assisted with New and Reinvestment Projects including the new HEB, Lowe’s and the adaptive reuse of Lynntech and Wal Mart. o Northgate Garage Revenue/Access Control Equipment Upgrade o Facilitated the development of a new Scott & White Healthcare Facility o Certification of 3 new Community Housing Development Organizations (CHDOs) • Animal Control Ordinance – After over two years of discussions, research, committee and stakeholder meetings, a new Animal Control ordinance was passed enhancing the City’s ability to be more progressive and clear with the expectations of the ordinance. • Brazos Valley Solid Waste Management Agency – Several Council and staff members were very involved in a transition plan to develop the organization into a stand alone Local Government Corporation. Staff also maintained a compaction rate of 1,475 lbs. per cubic yard at the Rock Prairie Road Landfill, extending facility life until April 2011, and managed the Twin Oaks Landfill Construction Project, attaining 99% completion at year end. • New Equipment for the Fire Department – The self contained breathing apparatus utilized by the Fire Department for emergency operations was replaced with new breathing apparatus that meets the new standards. This replacement was possible through a grant from the Federal Emergency Management Agency. The City also began plans to replace two pumper trucks and a ladder truck in the upcoming year. • Streets, Drainage and Traffic Projects – Projects completed by Public Works to address safety, mobility and street maintenance include: o Rock Prairie overlay from Flying Ace to Bradley o Northgate Pedestrian Safety Plan including pedestrian warning flashers o South Dexter overlay o Tarrow overlay from University Drive to City of Bryan o Sun Meadow channel improvement o Holleman overlay from Anderson to Winding • Development Review – Planning and Development Services reviewed more than 300 development projects, issued more than 1,100 building permits, and conducted more than 12,000 building and construction inspections on development valued at more than $250 million. Significant development projects for 2010 include Lowe’s, HEB, Wal Mart Super Center, the Med expansion and the initial stages of the Scott & White Hospital. • College Station Utilities – After years of effort, CSU was successful in completing an Electric Franchise Agreement and Common Pole Use Agreement with the City of Bryan. These agreements formalize the use of College Station rights of way by City of Bryan when providing electric service to BTU customers within College Station. CSU will also be working with BTU to prepare a joint proposal to the Brazos Valley Solid Waste x Management Agency for purchase of landfill methane gas. This joint proposal will enable the two electric utilities to cooperatively own a small electric generating plant at the BVSWMA landfill and use the methane gas as the fuel for generating electricity. • Environmental Awareness – The City continued to implement projects funded through the Department of Energy grant including: o Hybrid Vehicles: Purchased two new hybrid vehicles and participated in a hybrid vehicle training class with the City of Bryan and Texas A&M University. During the budget process an additional 14 vehicles up for replacement were identified to be replaced with hybrids. o Veteran’s and Central Park Retrofits:  Irrigation system upgrades and smart controllers  LED parking lot lighting  Solar powered trash compactors Additional installation and renovation of irrigation systems are planned for next year at Southwood Athletic Complex, W. Smith Baseball Fields, Bee Creek Softball Fields and Anderson Park. o Sustainability Coordinator is Hired: The City used funds acquired through the Energy Efficiency and Conservation Block Grant to hire a sustainability coordinator whose duties include development, implementation, monitoring, and measurement of a comprehensive City-wide program incorporating sustainability into all aspects of City operations. Other environmental activities accomplished this past year include: o Solar Photovoltaic Rebate Program: College Station Utilities implemented a program providing rebate incentives for CSU customers in the installation of solar photovoltaic systems on their homes. o Retiming of Signals in the George Bush Corridor: Staff worked to implement signal operations to improve traffic progression along the corridor resulting in reduced travel times in the peak periods by 10 to 28% and reduced travel times in the off peak period by about 43%. o Paperless Paystub Project: Converted city employees with computer access to digital pay stubs, saving the city time and money by not printing/stuffing and delivering paper pay stubs. o Residential and Commercial Recycling: The City initiated a five year contract with Texas Commercial Waste to provide residential recycling services, approved a franchise with Brazos valley Trash Valet & Recycling to provide recycling at multifamily apartments and commercial businesses, and approved franchises allowing recycling of food waste. • Water Services: The Water Services Department produced 4.2 billion gallons of water and treated 2.3 billion gallons of wastewater without a single public health issue. The completion of capital projects associated with Well 8 increased water production capacity to 30 million gallons per day, and the approved permit for that well bumped up the annual water supply capacity to above the required amount projected at build-out of the water services area. • Capital Projects Completed in 2010 o Dowling Road Electric Substation o Brazos Valley Wide Area Communications System Infrastructure o Discovery Drive Extension o Improvements at Windwood Park, Pebble Creek Park, Southern Oaks Park, and Castle Rock Park o State Highway 30 Widening Project xi o Twin Oaks Landfill Wireless Link o Installation of Water Line, Lift Station, Gravity Line and Force Main to serve the W.D. Fitch East area (Annexation Area 6) o Texas Avenue Streetscaping Phase II o Westminster Sewer Line o Installation of 2 new Traffic Signals: Arrington/W.D. Fitch Parkway and University Drive/Copperfield o Fiber Optic Infrastructure to Adamson Lagoon Bathhouse, Veterans Park and Reroute Wellborn Rd/FM 2818 o Well 8, Well 8 Collection Line, and Parallel Wellfield Collection Line • Projects in Design, under Construction or to be Completed in 2011 – Many projects approved with the 2008 bond election began design during the past year and will commence or complete construction this coming year. o Fire Station 6 o Holleman Drive Extension o South Knoll/The Glade and Southwood 5-7 Water/Wastewater Rehabilitation o Multi-Use Trail along FM 2818 from Texas Avenue to Welsh Avenue o Tauber and Stasney Street Rehabilitation o Reclaimed Water Project o Utility Dispatch Operations Center o Jones-Butler Extension o Improvements to Greens Prairie Trail and Royder Road in anticipation of the opening of Greens Prairie Elementary School o Central Park Restroom/Concessions Building o Emergency Electric Interconnection with Entergy Corporation o Barron Road Widening Phase 2 o Renovations at Emerald Forest, Wood Creek, Southwest, and Brother’s Pond Parks o Wolf Pen Creek Festival Grounds and Water Feature o Victoria Avenue Extension o Skate Park OTHER INFORMATION Independent Audit Section 37 of the City's Charter requires that not less than thirty (30) days prior to the end of each fiscal year, the City Council shall designate a qualified public accountant or accountants who, as of the end of the fiscal year, shall make an independent audit of accounts and other evidences of financial transactions of the city government and shall submit the report to the City Council. Such accountants shall have no personal interest, direct or indirect, in the fiscal affairs of the city government. They shall not maintain any account or record of the city business, but, within specifications approved by the City Council, shall post-audit the books and documents kept by the Department of Fiscal Services and any separate or subordinate accounts kept by any other office, department or agency of the city government. The City of College Station has engaged Ingram, Wallis & Company, Certified Public Accountants, of Bryan, Texas to perform the audit, and their opinion has been included in this report. It should be noted that the auditors included all funds in their audit, performed their audit in accordance with U.S. generally accepted auditing standards, and concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the City of College Station's financial statements for the fiscal year ended September 30, 2010 are fairly presented in conformity with U.S. generally accepted accounting principles. 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, 2009. 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 . Acknowledgement The preparation of this report could not have been accomplished without the efforts and dedicated services of the entire staff of the Fiscal Services Department. Appreciation is also expressed to City employees throughout the organization , especially those employees who were instrumental in the successful completion of this report. Acknowledgement is also given to the representatives of Ingram, Wallis & Company for their assistance in producing the final product. Our appreciation is also extended to the Mayor and City Council for their interest and support in planning and conducting the financial operations of the City in a responsible and progressive manner. Respectfully submitted, Ik David Neeley City Manager Xli CITIZENS OF COLLEGE STATION MAYOR AND COUNCIL CITY SECRETARY MUNICIPAL JUDGES CITY ATTORNEY CITY MANAGER FIRE POLICE PLANNING & DEVELOPMENT SERVICES PARKS & RECREATION PUBLIC WORKS WATER SERVICES FISCAL SERVICES ADMINISTRATION SUPPRESSION PREVENTION EMERGENCY MEDICAL SERVICES (EMS) ADMINISTRATION UNIFORM PATROL CRIMINAL INVESTIGATIONS SPECIAL SERVICES QUARTERMASTER COMMUNICATIONS / JAIL RECRUITING/ TRAINING INFORMATION SERVICES PLANNING ADMINISTRATION MAPPING COORDINATION DEVELOPMENT COORDINATION BUILDING INSPECTION ADMINISTRATION STREETS DRAINAGE FLEET TRAFFIC SIGNS/SIGNALS SANITATION ENGINEERING PLANT OPERATIONS INTERNAL AUDITOR PARKING FACILITIES MAINTENANCE FIELD OPERATIONS EMERGENCY MANAGEMENT ASSISTANT CITY MANAGER ASSISTANT CITY MANAGER ECONOMIC DEVELOPMENTCOMMUNITY DEVELOPMENT ELECTRIC UTILITY APPOINTED BOARDS AND COMMISSIONS BVSWMA GIS & ASSET MANAGEMENT ENVIROMENTAL SERVICES WATER RESOURCES INFORMATION TECHNOLOGY COMMUNICATION SERVICES ADMINISTRATION E-GOVERNMENT GEOGRAPHIC INFORMATION SERVICESMANAGEMENT INFORMATION SYSTEMS MAIL ADMINISTRATION RECREATION SPECIAL FACILITIES PARKS OPERATIONS PARKS OPERATIONS FORESTRY FORESTRY SPECIAL FACILITIES LIBRARY ASSISTANT DIRECTOR TREASURER ASSISTANT DIRECTOR ACCOUNTING OFFICE OF BUDGET & STRATEGIC PLANNING MUNICIPAL COURT PURCHASING UTILITY CUSTOMER SERVICE CAPITAL IMPROVEMENT PROJECTS PUBLIC COMMUNICATION AND MARKETING HUMAN RESOURCES ADMINISTRATION CODE ENFORCEMENT xiii CITY OF COLLEGE STATION, TEXAS PRINCIPAL CITY OFFICIALS Elected Officials: Mayor ..................................................................................................................................................... Nancy Berry Council Member, Mayor Pro Tem ................................................................................................... John Crompton Council Member, Place 2 ........................................................................................................................ Jess Fields Council Member, Place 3 ................................................................................................................ Dennis Maloney Council Member, Place 4 ............................................................................................................... Katy-Marie Lyles Council Member, Place 5 ................................................................................................................... Jana McMillan Council Member, Place 6 ................................................................................................................... David Ruesink City Administration: City Manager ....................................................................................................................................... David Neeley Assistant City Manager ......................................................................................................................... Kathy Merrill City Attorney ..................................................................................................................................... Carla Robinson City Secretary ................................................................................................................................ Sherry Mashburn Municipal Court Judge ............................................................................................................ Edward J. Spillane III Internal Auditor .............................................................................................................................................Ty Elliott Director of Electric Utility .................................................................................................................... David Massey Director of Human Resources ............................................................................................................... Alison Pond Chief Financial Officer ............................................................................................................................ Jeff Kersten Director of Information Technology ......................................................................................................... Ben Roper Director of Public Communications and Marketing ..................................................................................Jay Socol Fire Chief ............................................................................................................................................... Robert Alley Police Chief .......................................................................................................................................... Jeffrey Capps Interim Director of Parks and Recreation .......................................................................................... David Schmitz Director of Economic and Community Development ....................................................... James (David) Gwin, Jr. Director of Planning and Development Services ................................................................................... Bob Cowell Director of Public Works .................................................................................................................... Chuck Gilman Director of CIP .................................................................................................................................... Chuck Gilman Director of Water Services ............................................................................................................... David Coleman xiv Certificate of Achievement for Excellence in Financial Reporting Presented to City of College Station Texas For its Comprehensive Annual Financial Report for the Fiscal Year Ended September 30, 2009 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. Executive Director xv Ingram,Wallis &Co.,P.c. CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITORS' REPORT The Honorable Mayor and Members of the City Council of the City of College Station , Texas We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of College Station, Texas (the "City"), as of and for the year ended September 30, 2010,.. which collectively comprise the City's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City ' s rrianagement. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generaUy accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroiler General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the fmancial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business­ type activities, each major fund, and the aggregate remaining fund information of the City as of September 30, 2010, and the respective changes in financial position, and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated April 18, 2011, on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, James D. Ingram, fIl Thomas A, Wallis James D, Ingram, IV Richard L. Webb Melissa M. SlIehS • Diana K, Wagn er • Rosanne P. Ely • Teja T. Ruiz • Stephanie N. Sanford T.979.776.2600 F.979 .77 4.7759 E. iwc@ingram-waJ/is .com 2100 East Villa Maria, Suite 100 • Bryan, Texas 77802 and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing and not to provide an opinion on the internal control over financial " reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. Accounting principles generally accepted in the United States of America require that management's discussion and analysis, schedule of funding progress -Texas Municipal Retirement System and budgetary comparison information on pages 3 through 21 and 73 thfough 76, be presented to supplement the basic financial statements. Such information, although not part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's response to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements as a whole. The introductory section, combining and individual norunajor fund financial statements, and statistical section, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual norunajor fund financial statements are the responsibility of management and were derived from and related directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. The introductory and statisticai sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on it. Bryan, Texas April 18, 2011 2 Management's Discussion and Analysis For the Fiscal Year Ended September 30, 2010 (Unaudited) City of College Station, Texas This section of the City of College Station's (the “City”) Comprehensive Annual Financial Report presents a narrative overview and analysis of the financial activities of the City for the fiscal year ended September 30, 2010. 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 $402,731,641 (net assets). Of this amount, $76,178,446 (unrestricted net assets) may be used to meet the government's ongoing obligations to citizens and creditors.  The City's total net assets increased by $15,267,144 during the fiscal year.  At the close of the current fiscal year, the City's governmental funds reported combined ending fund balances of $79,237,660, an increase of $25,842,669 when compared to the prior year.  Approximately 14.0 percent of the combined governmental funds ending fund balance, or $11,101,327 is available for spending at the City's discretion (unassigned fund balance).  During fiscal year 2010, the City's total debt increased by approximately $23,535,000. Key factors in this increase were the issuance of $27,730,000 in General Obligation Improvement Bonds and $3,900,000 in business-purpose and governmental Certificates of Obligation. OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the City's basic financial statements. The City's basic financial statements are comprised of three components: (1) Government-wide financial statements (2) Fund financial statements (3) Notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. The following diagram illustrates the relationship between the different components of this report: USA/ASA 16U Fast Pitch National Championships 3 Management's Discussion and Analysis For the Fiscal Year Ended September 30, 2010 (Unaudited) City of College Station, Texas Relationship Between Comprehensive Annual Financial Report (CAFR) and Basic Financial Statements and Required Supplementary Information (RSI) General information on the government Introductory structure, services, and environment Section Pages vi-xiv Management's Discussion and Analysis Pages 3-21 Government-Wide Financial Statements Basic Pages 23-25 Financial Governmental Fund Financial Statements Statements Pages 26-29 And Proprietary Fund Financial Statements Financial RSI Pages 30-33 Section Notes to the Financial Statements Pages 35-72 4 Management's Discussion and Analysis For the Fiscal Year Ended September 30, 2010 (Unaudited) City of College Station, Texas Additional Required Supplementary Information Pages 73-76 Information on individual funds and other supplementary information not required by GAAP Pages 77-123 Trend Data and Non-financial Data Pages 125-152 Statistical Section 5 Management's Discussion and Analysis For the Fiscal Year Ended September 30, 2010 (Unaudited) City of College Station, Texas Government-Wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the City's finances, in a manner similar to a private-sector business. The statement of net assets presents information on all of the City's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether or not the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the City's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods, such as revenues pertaining to uncollected taxes and expenses pertaining to earned but unused vacation. Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, fiscal services, police, information technology, planning and development, fire, municipal services, streets, drainage, traffic parks and recreation, and citizen and neighborhood resources. The business-type activities of the City include electric, water, wastewater, sanitation, and the northgate parking garage. The government-wide financial statements can be found on pages 23-25. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into governmental funds and proprietary funds. Governmental Funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near- term inflows and outflows of spendable resources as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in determining what financial resources are available in the near future to finance the City's programs. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. 6 Management's Discussion and Analysis For the Fiscal Year Ended September 30, 2010 (Unaudited) City of College Station, Texas The City maintains several individual governmental funds organized according to their type (special revenue, debt service, and capital projects). Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, Debt Service Fund, and Streets Projects Fund, all of which are considered to be major funds. Data from the remaining governmental funds are combined into a single, aggregated presentation. Individual fund data for each of the non-major governmental funds is provided in the form of combining statements elsewhere in this report. The governmental fund financial statements can be found on pages 26- 29. The City adopts an annual appropriated budget for its General Fund, Debt Service Fund, Special Revenue Funds, and Capital Projects Funds. A budgetary comparison statement has been provided for the General Fund, Debt Service Fund, Special Revenue Funds, and Capital Projects Funds to demonstrate compliance with their budgets. Proprietary Funds Proprietary funds are generally used to account for services for which the City charges customers--either outside customers or internal units or departments of the City. Proprietary funds provide the same type of information as shown in the government-wide financial statements, only in more detail. The City maintains the following two types of proprietary funds: Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for the operations of the electric, water, wastewater, sanitation, and parking activities of the City. The Electric, Water, and Wastewater funds are considered to be major funds of the City, while the remaining funds (Sanitation and Northgate Parking Garage) are presented in aggregate as non-major enterprise funds. Individual fund data for the non-major enterprise funds can be found in the form of combining statements elsewhere in this report. Internal service funds are used to report activities that provide supplies and services for certain City programs and activities. The City uses internal service funds to account for communication, fleet maintenance and utility customer services. It also uses internal service funds to account for equipment replacement; employee benefits; and unemployment, workers' compensation, and property and casualty insurance. All of these services, with the exception of utility customer service, predominantly benefit governmental rather than business-type functions and have been included within governmental activities in the government-wide financial statements. The Utility Customer Service Fund has been included with the business-type activities in the government-wide financial statements. The internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report. The proprietary fund financial statements can be found on pages 30-33. Notes to the Financial Statements The notes to the financial statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. 7 Management's Discussion and Analysis For the Fiscal Year Ended September 30, 2010 (Unaudited) City of College Station, Texas Required Supplementary Information In addition to the basic financial statements and accompanying notes, this report presents on pages 73-76, certain required supplementary information concerning the City's progress in funding its obligation to provide pension benefits and other postemployment 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 77- 123 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 $402,731,641 at the close of the most recent fiscal year. The largest portion of the City's net assets (78.0 percent) reflects its investment of $314,762,842 in capital assets (e.g., land, buildings, and equipment), less any related outstanding debt used to acquire those assets. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be liquidated for these liabilities. Net Assets Governmental Activities Business-Type Activities Total 2010 2009 2010 2009 2010 2009 Assets Current and Other Assets 100,286,970$ 84,010,939$ 71,770,711$ 89,680,799$ 172,057,681$ 173,691,738$ Capital Assets 227,826,053 214,833,592 294,199,470 273,364,671 522,025,523 488,198,263 Total Assets 328,113,023 298,844,531 365,970,181 363,045,470 694,083,204 661,890,001 Liabilities Long-Term Liabilities Outstanding 111,218,394 92,196,728 133,775,803 146,555,278 244,994,197 238,752,006 Other Liabilities 15,935,399 17,327,540 30,421,967 18,345,958 46,357,366 35,673,498 Total Liabilities 127,153,793 109,524,268 164,197,770 164,901,236 291,351,563 274,425,504 Net Assets Invested in Capital Assets, Net of Related Debt 153,397,767 89,475,869 161,365,075 130,924,993 314,762,842 220,400,862 Restricted 10,201,722 48,296,712 1,588,631 20,286,147 11,790,353 68,582,859 Unrestricted 37,359,741 51,547,682 38,818,705 46,933,094 76,178,446 98,480,776 Total Net Assets 200,959,230$ 189,320,263$ 201,772,411$ 198,144,234$ 402,731,641$ 387,464,497$ An additional portion of the City's net assets, $11,790,353 (2.9 percent) represents resources that are subject to external restrictions on how they may be used. The remaining balance of 8 Management's Discussion and Analysis For the Fiscal Year Ended September 30, 2010 (Unaudited) City of College Station, Texas unrestricted net assets, $76,178,446 (18.9 percent) may be used to meet the government's ongoing obligations to citizens and creditors. At the end of the current fiscal year, the City was able to report positive balances in all three categories of net assets, both for the government as a whole, as well as for the business-type activities. The same situation held true for the prior fiscal year. The City's net assets increased by $15,267,144 as a result of fiscal year 2010 operations. The increase is primarily attributable to streamlining the process of recording developer capital in order to reflect past developer capital contributions on the City’s financial statements. The following table provides a summary of the City's operations for the year ended September 30, 2010 and highlights key elements of the change in the City's net assets: Changes in Net Assets For the Fiscal Year Ended September 30, 2010 Governmental Activities Business-Type Activities Total Revenues 2010 2009 2010 2009 2010 2009 Program Revenues: Charges for Services 12,461,497$ 13,625,722$ 123,870,194$ 120,852,266$ 136,331,691$ 134,477,988$ Operating Grants and Contributions 1,694,228 1,896,623 - 17,792 1,694,228 1,914,415 Capital Grants and Contributions 19,587,921 2,644,629 11,703,035 6,846,033 31,290,956 9,490,662 General Revenues: Property Taxes 24,745,344 22,769,699 - - 24,745,344 22,769,699 Sales and Mixed Beverage Taxes 19,751,004 19,873,213 - - 19,751,004 19,873,213 Other Taxes 5,597,943 5,792,267 - - 5,597,943 5,792,267 Interest and Investment Income 265,424 1,413,431 420,236 654,882 685,660 2,068,313 Loss on Disposition of Capital Assets (24,596) - - - (24,596) - Total Revenues 84,078,765 68,015,584 135,993,465 128,370,973 220,072,230 196,386,557 Expenses General Government 11,534,705 8,631,908 - - 11,534,705 8,631,908 Fiscal Services 4,127,990 3,821,996 - - 4,127,990 3,821,996 Police 16,063,347 13,945,079 - - 16,063,347 13,945,079 Fire 13,301,029 11,778,585 - - 13,301,029 11,778,585 Planning and Development Services 2,952,177 2,823,296 - - 2,952,177 2,823,296 P ublic Works 17,026,827 16,804,436 - - 17,026,827 16,804,436 Capital Projects 256,177 476,462 - - 256,177 476,462 Parks and Recreation 11,202,863 10,136,521 - - 11,202,863 10,136,521 Library 1,103,864 1,052,838 - - 1,103,864 1,052,838 Information Technology 5,048,720 3,471,714 - - 5,048,720 3,471,714 In t e r e s t o n L o n g T e r m D e b t 4 ,111,5 2 3 4,135,146 - - 4 ,111,5 2 3 4,135,146 Unallocated Depreciation 1,047,906 789,074 - - 1,047,906 789,074 Electric Utility - - 88,685,699 77,441,351 88,685,699 77,441,351 Water Utility - - 10,190,159 9,287,343 10,190,159 9,287,343 Wastewater Utility - - 10,604,983 9,829,813 10,604,983 9,829,813 Sanitation Services - - 6,527,724 5,776,002 6,527,724 5,776,002 Parking Operations - - 1,019,393 909,167 1,019,393 909,167 Total Expenses 87,777,128 77,867,055 117,027,958 103,243,676 204,805,086 18 1,110 ,7 3 1 Increase in Net Assets Before Transfers (3,698,363) (9,851,471) 18,965,507 25,127,297 15,267,144 15,275,826 Transfers Net 15,337,330 12,778,642 (15,337,330) (12,778,642) - - Increase in Net Assets 11,638,967 2,927,171 3,628,177 12,348,655 15,267,144 15,275,826 Net Assets at Beginning of Year 189,320,263 180,996,512 198,144,234 190,615,579 387,464,497 371,612,091 Prior Period Adjustment - 5,396,580 - (4,820,000) - 576,580 Net Assets at End of Year 200,959,230$ 189,320,263$ 201,772,411$ 198,144,234$ 402,731,641$ 387,464,497$ 9 Management's Discussion and Analysis For the Fiscal Year Ended September 30, 2010 (Unaudited) City of College Station, Texas Governmental activities. Governmental activities increased the City of College Station's net assets by $11,638,967. Key elements of this net increase are as follows:  Capital Grants and Contributions increased by $10,773,887 as the result of getting past developer contributions recorded in capital assets.  Property taxes increased $1,975,645 (8.7 percent) during the year. This is primarily the result of the total ad valorem assessed valuations increasing by $367 million or 7 percent over fiscal year 2009.  Sales and mixed beverage taxes decreased $122,209 (0.6 percent) during the year. This is attributable to the slowdown in the economy seen during the year.  Interest and investment income decreased $1,148,007 (81.2%) due to continue low interest rates on investments. The chart below illustrates the City's governmental revenues by source. Charges for Services 13% Grants and Contributions 21% Property Tax 25% Sales Tax 20% Other Taxes 6% Investment Income 0% Loss on Disposition of Capital Assets 0% Transfers 15% City of College Station, Texas Governmental Revenues By Source $99,416,095 10 Management's Discussion and Analysis For the Fiscal Year Ended September 30, 2010 (Unaudited) City of College Station, Texas Another useful chart depicts governmental activity program revenues relative to program expenses. That data is presented below: Business-type activities. Business-type activities increased the City of College Station's net assets by $3,628,177. Key elements of this increase are as follows:  Capital grants and contributions increased by $11,703,035 as the result of getting past developer contributions recorded on in capital assets.  Electric utility expenses saw an increase of $11,244,348 or 14.5 percent from fiscal year 2009. This is primarily attributable to increased purchased power expenses.  Charges for services increased by $3,017,928 or 2.5 percent from fiscal year 2009 due to utility rate increases. - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 18,000,000 Governmental Activities Comparison of Program Revenues to Program Expenses Program Revenues Program Expenses 11 Management's Discussion and Analysis For the Fiscal Year Ended September 30, 2010 (Unaudited) City of College Station, Texas Revenues for the City's business-type activities are presented in the following chart. Charges for Services 91% Grants and Contributions 9% Investment Income 0% Business-type Revenues $135,573,229 12 Management's Discussion and Analysis For the Fiscal Year Ended September 30, 2010 (Unaudited) City of College Station, Texas Another useful chart depicts business-type activity program revenues relative to program expenses. That data is presented below. - 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 80,000,000 90,000,000 100,000,000 Electric Water Wastewater Sanitation Northgate Parking Business-type Activities Comparison of Program Revenues to Program Expenses Program Revenues Program Expenses 13 Management's Discussion and Analysis For the Fiscal Year Ended September 30, 2010 (Unaudited) City of College Station, Texas FINANCIAL ANALYSIS OF THE CITY'S FUNDS As noted previously, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds The focus of the City's governmental funds is to provide information on near-term inflows, outflows, and balances of resources that are available for spending. Such information is useful in assessing the City's financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. The types of governmental funds reported by the City include the General Fund, 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 $79,237,660. Approximately 14.0 percent ($11,101,327) of this total amount constitutes unassigned fund balance and is available for spending at the City's discretion. The remainder of fund balance is reserved to indicate that it is not available for new spending because it has already been committed as follows: Nonspendable $8,306,158 Restricted $55,271,532 Committed $4,558,643 Unassigned $11,101,327 A detailed breakdown of the fund balance reserve can be found in Note IV. H. Reservations of Fund Balances and Net Assets. Overall, revenues for governmental functions totaled $68,261,452 in the fiscal year ended September 30, 2010, an increase of 6.8 percent or $4,355,473 from the fiscal year ended September 30, 2009. Expenditures for governmental functions totaling $86,476,347 decreased by approximately 19.9 percent ($21,449,546) from the fiscal year ended September 30, 2009. In fiscal year 2010, expenditures for governmental functions exceeded revenues by $18,214,895. That amount was 58.6 percent less than the previous year's amount of $44,019,914, due to a decrease in capital outlay expenditures in fiscal year 2010 over 2009. The General Fund is the chief operating fund of the City of College Station. At the end of the current fiscal year, the unassigned fund balance was $11,101,327 while the total fund balance was $13,815,881. The City's fiscal and budgetary policies require that the General Fund's fund balance be at least equal to 15 percent of budgeted expenditures, a percentage equal to 55 days of expenditures. The total fund balance is approximately 23.6 percent of fiscal year 2010 amended budgeted expenditures and exceeds the minimum requirement set by policy. As a measure of the fund's liquidity, it is useful to compare both unassigned and total fund balance to total fund actual expenditures. Unassigned fund balance represents 19.5 percent of total general fund expenditures, while total fund balance represents 24.2 percent of total general 14 Management's Discussion and Analysis For the Fiscal Year Ended September 30, 2010 (Unaudited) City of College Station, Texas fund expenditures. The total fund balance for the general fund continues to meet and exceed the Fiscal and Budgetary Policy of having 15 percent of expenditures available in fund balance. The General Fund’s fund balance increased by $2,541,674 during the current fiscal year. The key factors in this change follow:  The fiscal year 2010 original budget anticipated a minimal increase in fund balance as a result of budget reductions.  Sales tax revenues came in slightly higher than anticipated in fiscal year 2010  Overall expenditures were down by approximately 1.6 percent, due to reductions in the budget as a result of lower revenues. The Debt Service Fund ended the fiscal year with a fund balance of $4,119,966. This entire amount is reserved for the payment of debt service. The net increase in fund balance during the current fiscal year was $218,756. Revenues received during the year were enough to cover principal retirements and interest payments. The Street Projects Fund ended the fiscal year with a balance of $21,886,547. 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 $8,138,588. This increase was attributable to proceeds received from long term debt issued in fiscal year 2010. 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 $199,944,301. 18.7 percent ($37,409,178) of this total amount constitutes unrestricted net assets. The remainder of net assets for the proprietary funds, $162,353,123, is reported as follows:  Invested in capital assets, net of related debt ($160,946,492), and  Restricted for debt service ($1,588,631). Operating revenues for proprietary activities totaled $123,525,129 for the fiscal year, an increase of 6.2 percent or $7,233,670 from the previous fiscal year. Operating expenses increased $12,551,489 or 13.0 percent for the same period. Operating income was $13,99,642 for the fiscal year. The proprietary funds reported net non-operating expenses of $5,400,654 at the end of fiscal year 2010 as compared to net non-operating expenses of $857,774 in the previous fiscal year. Proprietary net assets increased $4,564,693 in fiscal year 2010. 15 Management's Discussion and Analysis For the Fiscal Year Ended September 30, 2010 (Unaudited) City of College Station, Texas Electric Fund At the end of the fiscal year, the unrestricted net assets for the Electric Fund totaled $7,421,014. The electric utility ended the fiscal year with working capital (current assets minus current liabilities) of $4,300,094, a decrease of 54.8 percent from fiscal year 2009. 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, 2010, Electric Fund working capital equaled approximately 5.0 percent of annual operating expenses. Electric Fund operating revenues increased by 10.4 percent ($8,552,685) during fiscal year 2010, while operating expenses increased 14.3 percent ($10,810,972) during the same period. This resulted in operating income of $4,619,836 which is a 32.8 percent decrease ($2,258,287) in operating income in fiscal year 2010 over fiscal year 2009. The decrease in operating income is attributable to an increase in operating expense due to anticipated higher purchased power costs. The above resulted in a decrease in net assets of $5,267,921 in the Electric Fund during the fiscal year. Water Fund Unrestricted net assets for the Water Fund at September 30, 2010 were $7,863,945. Working capital in the Water Fund at the end of fiscal year 2010 was $5,561,287, a decrease of approximately 51.2 percent from fiscal year 2009. Water Fund working capital was 72.0 percent of total operating expense and exceeds the minimum 15 percent requirement under the Council's adopted policy. Water Fund operating revenues decreased by 9.6 percent ($1,356,646) during fiscal year 2010. Operating expenses of $7,728,560 increased 8.0 percent ($620,459) over fiscal year 2009. This resulted in operating income of $5,016,613 which was a decrease of $1,977,105 in fiscal year 2010 over fiscal year 2009. The Water Fund's net assets increased $4,550,760 during the fiscal year, a 6.5 percent increase over the previous year. Wastewater Fund The Wastewater Fund's unrestricted net assets at the end of fiscal year 2010 were $5,837,582. The Wastewater Fund ended the fiscal year with a working capital balance of $3,820,432 which was 46.3 percent below fiscal year 2009. Fiscal year 2010 Wastewater Fund working capital was 43.5 percent of total operating expenses and is well above the minimum requirement for the fund. Operating revenues in the Wastewater Fund were $11,522,025, a $133,503 (1.2 percent) decrease over the previous fiscal year. Operating expenses increased from $8,089,816 to $8,782,211 or 8.6 percent while operating income decreased by 23.2 percent from $3,565,712 to $2,739,814. BUDGETARY HIGHLIGHTS The final amended budget for fiscal year 2010 totaled $296,835,978 for all funds. Of this amount $231,737,802 (78.1 percent) was budgeted for operations and maintenance expenditures, and $65,098,176 (21.9 percent) was budgeted for capital improvement projects. 16 Management's Discussion and Analysis For the Fiscal Year Ended September 30, 2010 (Unaudited) City of College Station, Texas In the General Fund the final amended budget showed an increase in fund balance of $3,057,408. The actual change in fund balance was $2,541,674. The following are some of the key factors in the change in fund balance:  Revenues were higher than the budget estimate due to the timing of some of the Intergovernmental revenue.  Expenditures were overall lower due to budget reductions made during the year to respond to revenues projected to be lower than originally anticipated. Strategic planning is a driving force in the preparation of the City's budget. The City Council has identified the following areas of strategic priority:  Financially sustainable city providing response to core services and infrastructure.  Neighborhood integrity  Diverse growing economy  Best place to live in the United States  Green sustainable city  Exceptional multi modal transportation Budget resources were included in fiscal year 2010 to address these priorities. CAPITAL ASSETS The City of College Station's investment in capital assets for its governmental and business-type activities as of September 30, 2010 amounted to $522,025,523 (net of accumulated depreciation). This investment in capital assets includes land, utility systems, buildings and building improvements, improvements other than buildings, machinery and equipment, infrastructure, and construction in progress. Capital Assets at Year End Net of Accumulated Depreciation Governmental Business‐Type Activities Activities Total Land 42,699,556$   690,707$          43,390,263$    Utility Systems ‐                         217,399,631    217,399,631    Buildings and Building Improvemen 26,506,122     4,460,999         30,967,121       Improvements Other than Buildings 21,740,186      ‐                          21,740,186       Machinery  and Equipment 9,990,090        2,199,677         12,189,767       Infrastructure 119,243,785   ‐                          119,243,785    Construction in Progress 7,646,314        69,448,456      77,094,770       227,826,053$ 294,199,470$  522,025,523$  17 Management's Discussion and Analysis For the Fiscal Year Ended September 30, 2010 (Unaudited) City of College Station, Texas Major capital projects completed by the City during the 2010 fiscal year include the following:  ATM Network Replacement  CAD Hardware Operating System  Police Station Improvements  Northgate Restrooms  Southern Oaks Trail/Lights  Pebble Creek Basketball Pavilion  Windwood Park Improvements  College Park/Breezy Heights – Streets and Drainage  Bee Creek Combined Drainage  Texas Avenue Streetscape  Traffic Signal – Arrington/Highway 40  W.D. Fitch Widening Phase II  Water Parallel Well field Collection Line  Water Well #8 Collection Line  Rock Prairie Road South of Carter Lake Water and Wastewater  William D. Fitch East Water and Wastewater  Westminster Gravity Sewer Line  Carter Creek Wastewater Treatment Plant Improvements  Sun Meadows Drainage Improvements  Dowling Road Electric Substation Of significance is $25,121,551 in developer capital contributions during fiscal year 2010. These contributions accounted for 4.8 percent of the $522,822,022 million in capital assets. Additional information on the City's capital assets can be found in Note IV-C to the financial statements on pages 50-51. DEBT ADMINISTRATION At the end of the 2010 fiscal year, the City of College Station had total debt outstanding of $251,240,000. Of this amount, $163,495,000 (65.1 percent) comprised debt backed by the full faith and credit of the City. Certain Certificate of Obligations fund business-type activities in the Electric, Water, Wastewater, and Northgate Parking Garage Funds. The remaining debt, $87,745,000 (34.9 percent), is revenue bonds secured by specified revenue sources. Year-End Outstanding Debt Payable Governmental Business-Type Activities Activities Total General Obligation Bonds 75,020,000$ 3,830,000$ 78,850,000$ Certificates of Obligation 35,675,000 48,970,000 84,645,000 Revenue Bonds - 87,745,000 87,745,000 110,695,000$140,545,000$ 251,240,000$ 18 Management's Discussion and Analysis For the Fiscal Year Ended September 30, 2010 (Unaudited) City of College Station, Texas The City's total debt increased by $7,480,000 (3.0 percent) during the current fiscal year. The change in total debt was a result of the following:  Issuance of $27,730,000 in general obligation improvement bonds and $3,900,000 in certificates of obligation, which funded governmental and business-type activities; and  Retirement of $8,025,000 in general obligation bonds, $10,115,000 in certificates of obligation, and the retirement of $6,010,000 in utility revenue bonds. The City's General Obligation and Certificates of Obligation have an underlying rating of AA by Standard & Poor’s ("S&P") and Aa2 by Moody's Investors Service ("Moody's"). The underlying ratings for the City's revenue bonds are A+ by S&P and A1 by Moody's. Additional information on the City's long-term debt can be found in Note IV-G to the financial statements on pages 54-58 of this report. ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES The economy over the last couple of years has suffered as all levels, including locally. As the fiscal year 2011 budget was prepared College Station continued to feel the effects of the economic slowdown. The following are some key fiscal and economic indicators for College Station including:  Property tax values are only up 1.2%, or $64,005,381 for fiscal year 2011 over the previous year. Total values are $5,455,432,461.  Since 1995 taxable values have increased from approximately $1.5 billion to approximately $5.5 billion currently.  A local economy that has maintained an annual unemployment rate of less than 5 percent since 1990, saw higher unemployment of 5.9% in 2010  Sales and mixed drink beverage tax revenue, the largest revenue stream in the General Fund, fell by 0.6 in fiscal year 2010. College Station has felt the effects of the national economic slowdown in fiscal year 2010. Part of the reason the City has not seen a bigger economic impact is because of the major influence of Texas A&M University on the local economy. The focus of this budget was to present a balanced budget that addresses core services provided by the city during a downturn in the economy. To accomplish this, reductions were made in several departments within the city to provide a balanced budget. It was also a goal to minimize, as much as possible, the impact of these reductions on the services provided to the citizens. Key revenue streams such as sales tax are lower than projected – even with estimates that had been revised downward. For fiscal year 2011 sales tax revenues are projected to be flat compared to fiscal year 2010. Property values are also growing at a lower rate than in previous years. The effects of these economic conditions had a significant impact on budget preparation. While there are recent signs of improvement in the economy, much will depend on the impact of budget reductions that will be made by the State of Texas. With Texas A&M University and several other state agencies in the community, the local economic recovery may be slower than hoped. During the past two fiscal years, it was necessary to reduce the budget due to revenues not coming in as anticipated. In fiscal year 2009, the General Fund budget was reduced by a total of $954,175. The fiscal year 2010 budget was reduced by a total of $3,393,098, and of this amount $2,193,338 19 Management's Discussion and Analysis For the Fiscal Year Ended September 30, 2010 (Unaudited) City of College Station, Texas was reduced from the General Fund. The fiscal year 2011 budget reductions total $1,029,253. Over the past 3 years, a total of $5,376,526 has been reduced from the budget. The fiscal year 2011 budget reductions include the elimination of 15 vacant positions in the city organization. In addition, 4 positions are being held vacant for some or all of fiscal year 2011. Other reductions in the fiscal year 2011 budget include the following:  Travel and training reductions of 35% from the FY 10 approved budget  Overtime reductions of 10%  Elimination of city paid long term disability benefit  Reducing swimming pool days of operations  Reducing funding to outside agencies  Reducing Teen Center hours of operations  Reduce equipment replacement set-aside in various departments  Reduce funds spent on food for meetings and events  Reduce advertising  Eliminate funds for federal lobbyist services  Reduce funding and programming for Christmas in the Park  Reduce funds for building maintenance  Reduce various supply budgets  Reduce technology maintenance and services  Reduce professional services  Contract out certain mowing services  Reduce software maintenance costs through renegotiation of agreements It will be necessary to continue to closely monitor economic conditions this fiscal year, and if sales tax and other revenues do not perform as forecasted, then additional budget and service level reductions will have to be considered. The 2011 budget includes a 6 percent increase in the Electric Fund. This rate increase is needed to continue the planned increases in purchased power costs that have been phased in over the last several years. The 2011 budget also includes a 2% increase in water utility rates, and a 3% increase in wastewater rates. The 2011 budget does not include a rate increase in the Sanitation Fund, or Drainage Utility Fund. The fiscal year 2011 budget for capital improvements totals $25,233,026. The City anticipates significant expenditures for infrastructure projects throughout the city. These projects include rehabilitation of utilities, drainage ways, and streets. In November 2008, voters authorized $76,950,000 in future General Obligation Bonds for streets, traffic, fire station projects, the library expansion project, and parks and recreation projects. Some of the more significant upcoming capital projects are as follows:  Victoria Avenue Extension  Jones Butler (Penberthy) Extension  Royder Road Improvements  Rock Prairie Road Widening – Design & ROW  Barron Road Widening Phase II  Hike and Bike Trail Completion  Fire Station #6  Skate Park 20 Management's Discussion and Analysis For the Fiscal Year Ended September 30, 2010 (Unaudited) City of College Station, Texas  Beachy Central Park Improvements  East District Maintenance Shop  Radio System Replacement  Wastewater Rehabilitation – Tauber and Stasney  Water Rehabilitation – South Knoll/The Glade  Wastewater Rehabilitation – South Knoll the Glade  Waster Rehabilitation – Southwood 5-7  Wastewater Rehabilitation – Southwood 5-7  Carters Creek Lab and SCADA Building  High Service Water Pump Improvements  Water Reclamation Phase I  Water Distribution – Wellborn Widening  Barron Road Water Service Extension The City plans to issue $6,080,000 in general obligation bonds from the 2003 and 2008 bond authorization for the following: $2,800,000 for street and transportation improvements, $600,000 for traffic signals, $2,180,000 for parks and recreation projects, and $500,000 for Municipal Complex Expansion improvements. The City also plans to issue $380,000 in certificates of obligations for technology projects. In addition $1,000,000 is projected to be issued for the purchase of several Fire vehicles. The City also plans to issue $17,285,000 in long term debt for the following utility projects: $5,410,000 for electric capital projects, $5,450,000 for water capital projects, and $6,425,000 for wastewater capital projects. In addition, a total of $6,075,000 in cash from the utility funds is projected to be used for capital projects in fiscal year 2011. REQUESTS FOR INFORMATION This financial report is designed to provide a general overview of the City of College Station's financial position for all who have an interest in the City's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to: City of College Station Fiscal Services Department ATTN: Chief Financial Officer P.O. Box 9960 College Station, Texas 77842-9960 or visit our website at http://www.cstx.gov. 21 22 Governmental Activities Business-type Activities Total ASSETS Cash and cash equivalents 80,810,212$ 23,539,254$ 104,349,466$ Investments 6,001,151 1,690,118 7,691,269 Receivables (net of allowance for uncollectibles)5,932,859 17,306,959 23,239,818 Internal balance (1,920,482) 1,920,482 - Inventories 8,462,190 1,658,496 10,120,686 Prepaids 332,908 - 332,908 Restricted assets: Temporarily restricted: Cash and cash equivalents 184,890 6,681,680 6,866,570 Investments 10,742 495,976 506,718 Accrued interest receivable - 5,278 5,278 Equity in Joint Venture - 12,896,874 12,896,874 Loan Receivable - 4,765,000 4,765,000 Deferred Issuance Costs, net 472,500 810,594 1,283,094 Capital assets (net of accumulated depreciation): Land and Construction in Progress 50,345,870 70,139,163 120,485,033 Other capital assets (net of accumulated depreciation) 177,480,183 224,060,307 401,540,490 Total assets 328,113,023 365,970,181 694,083,204 LIABILITIES Accounts payable and other current liabilities 2,960,463 17,276,693 20,237,156 Retainage Payable 93,571 593,587 687,158 Refundable Deposits 107,036 - 107,036 Claims Payable 3,230,623 - 3,230,623 Accrued liabilities 725,596 330,758 1,056,354 Customer Construction Advances 196,324 81,313 277,637 Unearned Revenues 809,662 93,204 902,866 Liabilities Payable from Restricted Assets: Accrued interest payable 559,926 931,272 1,491,198 Accrued Liabilities - 17,455 17,455 Refundable deposits - 1,877,149 1,877,149 Noncurrent liabilities: Due within one year: Compensated Absences 187,398 26,304 213,702 Bonds and Certificates of Obligation Payable 7,580,000 8,920,000 16,500,000 Due in more than one year: Bonds and Certificates of Obligation Payable 103,115,000 131,625,000 234,740,000 Deferred Charge - Refunding (632,743) - (632,743) Unamortized Premium/Discount on Bonds 304,941 300,532 605,473 Compensated Absences 2,361,069 499,791 2,860,860 Other Post Employment Benefits (OPEB) Obligation 3,197,267 935,140 4,132,407 Net Pension Obligation 2,357,660 689,572 3,047,232 Total liabilities 127,153,793 164,197,770 291,351,563 NET ASSETS Invested in capital assets, net of related debt 153,397,767 161,365,075 314,762,842 Restricted for: Debt service 4,189,772 1,588,631 5,778,403 Public Safety 992,928 - 992,928 Community Development 1,601,469 - 1,601,469 Tourism 3,241,579 - 3,241,579 Other purposes 175,974 - 175,974 Unrestricted 37,359,741 38,818,705 76,178,446 Total net assets 200,959,230$ 201,772,411$ 402,731,641$ The notes to the financial statements are an integral part of this statement. CITY OF COLLEGE STATION Statement of Net Assets September 30, 2010 23 CITY OF COLLEGE STATION, TEXAS Statement of Activities For the Year Ended September 30, 2010 Program Revenues Operating Capital Charges for Grants and Grants and Functions/Programs Expenses Services Contributions Contributions Governmental activities: General Government $ 11,534,705 $ 1,002,964 $ 1,434,932 $ 2,686,814 Fiscal Services 4,127,990 100,495 - - Police 16,063,347 5,073,681 3,326 84,479 Fire 13,301,029 1,590,912 - 608,463 Planning and Development Services 2,952,177 1,075,342 - - Public Works 17,026,827 1,895,263 - 13,418,516 Capital Improvement Program 256,177 - - 951,686 Parks and Recreation 11,202,863 1,722,840 255,970 1,826,463 Library 1,103,864 - - 11,500 Information Technology 5,048,720 - - - Interest on long-term debt 4,111,523 - - - Unallocated Depreciation 1,047,906 - - - Total governmental activities 87,777,128 12,461,497 1,694,228 19,587,921 Business-type activities: Electric 88,685,699 91,162,890 - 1,367,544 Water 10,190,159 12,745,173 - 4,373,749 Wastewater 10,604,983 11,522,025 - 3,686,526 Sanitation 6,527,724 7,299,273 - 2,275,216 Northgate Parking 1,019,393 1,140,833 - - Total business-type activities 117,027,958 123,870,194 - 11,703,035 Total primary government $ 204,805,086 $ 136,331,691 $ 1,694,228 $31,290,956 General Revenue: Property taxespy Sales and Mixed Beverage taxes Franchise taxes Hotel occupancy taxes Unrestricted investment earnings Loss on disposition of capital assets Transfers Total general revenues and transfers Change in net assets Net assets - beginning Net assets - ending The notes to the financial statements are an integral part of this statement. 24 Net Revenue (Expense) and Changes in Net Assets Governmental Business-type Activities Activities Total $ (6,409,995) $ - $ (6,409,995) (4,027,495) - (4,027,495) (10,901,861) - (10,901,861) (11,101,654) - (11,101,654) (1,876,835) - (1,876,835) (1,713,048) - (1,713,048) 695,509 - 695,509 (7,397,590) - (7,397,590) (1,092,364) - (1,092,364) (5,048,720) - (5,048,720) (4,111,523) - (4,111,523) (1,047,906) - (1,047,906) (54,033,482) - (54,033,482) - 3,844,735 3,844,735 - 6,928,763 6,928,763 - 4,603,568 4,603,568 - 3,046,765 3,046,765 - 121,440 121,440 - 18,545,271 18,545,271 (54,033,482) 18,545,271 (35,488,211) 24,745,344 - 24,745,344 ,,,, 19,751,004 - 19,751,004 2,210,902 - 2,210,902 3,387,041 - 3,387,041 265,424 420,236 685,660 (24,596) - (24,596) 15,337,330 (15,337,330) - 65,672,449 (14,917,094) 50,755,355 11,638,967 3,628,177 15,267,144 189,320,263 198,144,234 387,464,497 $ 200,959,230 $ 201,772,411 $ 402,731,641 25 General Debt Service Street Projects Other Governmental Funds Total Governmental Funds Assets Equity in Cash and Cash Equivalents 14,382,761$ 3,831,295$ 20,619,679$ 28,935,988$ 67,769,723$ Equity in Investments 1,070,414 284,394 1,530,583 2,147,774 5,033,165 Receivables Accrued Interest 12,726 4,277 23,189 32,033 72,225 Grants 27,126 -- 257,035 284,161 Letter of Credit 25,000 ---25,000 Accounts 1,167,275 -373,512 857,955 2,398,742 Taxes 2,246,798 409,300 -- 2,656,098 Other 2,898 -- 603,092 605,990 Less Allowance for Uncollectible Accounts (55,890)-- (102,647) (158,537) Inventories 53,341 -- 8,330,819 8,384,160 Prepaid Costs 17,175 -315,733 - 332,908 Restricted Assets Equity in Cash and Cash Equivalents 184,890 --- 184,890 Equity in investments 10,742 ---10,742 Total Assets 19,145,256$ 4,529,266$ 22,862,696$ 41,062,049$ 87,599,267$ Liabilities and Fund Balances Accounts Payable 994,006$ -$ 383,041$ 440,253$ 1,817,300$ Claims Payable 1,600,000 --- 1,600,000 Retainage Payable --81,838 11,733 93,571 Interfund Payables 480,000 --- 480,000 Refundable Deposits 107,036 --- 107,036 Accrued Liabilities 695,893 --29,703 725,596 Customer Construction Advances 58,566 -137,758 - 196,324 Other Deferred Revenues 1,393,874 409,300 373,512 1,165,094 3,341,780 Total Liabilities 5,329,375 409,300 976,149 1,646,783 8,361,607 Fund Balances Nonspendable 70,516 -- 8,235,642 8,306,158 Restricted 849,622 4,119,966 21,886,547 28,415,397 55,271,532 Committed 1,794,416 -- 2,764,227 4,558,643 Unassigned 11,101,327 --- 11,101,327 Total Fund Balances 13,815,881 4,119,966 21,886,547 39,415,266 79,237,660 Total Liabilities and Fund Balances 19,145,256$ 4,529,266$ 22,862,696$ 41,062,049$ 87,599,267$ The notes to the financial statements are an integral part of this statement. CITY OF COLLEGE STATION, TEXAS Balance Sheet Governmental Funds September 30, 2010 26 CITY OF COLLEGE STATION, TEXAS Reconciliation of Governmental Funds Balance Sheet to the Statement of Net Assets September 30, 2010 Total Fund Balance per balance sheet: 79,237,660$ Amounts reported for governmental activities in the statement of net assets are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the governmental funds balance sheet. Includes capital assets of the Internal Service Funds. 227,826,053 Other assets are not available to pay for current-period expenditures and, therefore, are deferred in the funds. 2,532,118 Interest payable on long-term debt does not require current financial resources and therefore is not reported in the governmental funds balance sheet. (559,926) Internal Service Funds are used by management to charge the costs of certain activities, such as insurance, fleet maintenance, and equipment replacement to individual funds. The assets and liabilities of the internal service funds are included in the government-wide statements of net assets (net of the amount allocated to business-type activities, capital assets and long-term liabilities). Internal Service Fund balances not included in other reconciling items: Current assets 14,342,014$ Current liabilities (2,787,701) Net amount allocated to business-type activities (1,632,896) 9,921,417 Long-term estimated liabilities are recognized as expenses in the Statement of Activities as incurred, but are recognized when current financial resources are used in the governmental funds. Includes Internal Service Funds' estimated long term liabilities liabilities: Compensated absences (2,548,467)$ Net pension obligation (2,357,660) Other post retirement benefits (3,197,267) (8,103,394) Long-term debt liabilities are not due and payable in the current period and, therefore, are not reported in the governmental funds balance sheet: Due within one year (7,580,000)$ Due in more than one year (103,115,000) Deferred charges 800,302 (109,894,698) Net Assets of governmental activities: 200,959,230$ The notes to the financial statements are an integral part of this statement. 27 General Debt Service Street Projects Other Governmental Funds Total Governmental Funds Revenues Taxes 33,134,813$ 12,191,613$ -$ 4,575,377$ 49,901,803$ Licenses and Permits 964,344 - - - 964,344 Intergovernmental 795,750 - - 4,227,072 5,022,822 Charges for Services 4,043,200 - - 1,998,905 6,042,105 Fines, Forfeits, and Penalties 3,817,193 - - 683,254 4,500,447 Investment Income 69,379 35,352 21,033 80,884 206,648 Rents and Royalties 749,635 - - - 749,635 Contributions 15,366 - - 590,587 605,953 Other 139,644 30 11,915 116,106 267,695 Total Revenues 43,729,324 12,226,995 32,948 12,272,185 68,261,452 Expenditures Current General Government 4,098,364 -- 3,302,793 7,401,157 Fiscal Services 3,086,275 -5,225 543,509 3,635,009 Police 13,724,355 --92,265 13,816,620 Fire 11,414,188 --4,760 11,418,948 Planning and Development Services 2,456,322 --112,142 2,568,464 Public Works 6,099,189 -15,360 1,009,336 7,123,885 Capital Improvement Projects 129,005 --3,875 132,880 Parks and Recreation 8,295,138 --635,250 8,930,388 Information Services 3,886,102 --1,000 3,887,102 Library 1,080,030 --- 1,080,030 Claims 1,600,000 --- 1,600,000 Contributions 783,883 -- 1,482,675 2,266,558 Other 327,210 --111,547 438,757 Capital Outlay -- 4,386,929 5,378,222 9,765,151 Debt Service Principal Retirement - 8,050,000 -- 8,050,000 Interest Payments - 4,133,633 -- 4,133,633 Fiscal Charges -104,757 11,846 111,162 227,765 Total Expenditures 56,980,061 12,288,390 4,419,360 12,788,536 86,476,347 Deficiency of Revenues Under Expenditures (13,250,737)(61,395) (4,386,412) (516,351) (18,214,895) Other Financing Sources (Uses) Issuance of Debt -- 12,525,000 8,160,000 20,685,000 Issuance of Refunding Debt - 4,265,000 -- 4,265,000 Premium on bonds issued -75,183 --75,183 Payment to refunded bond escrow agent - (4,283,647)-- (4,283,647) Sales of Capital Assets 5,615 ---5,615 Transfers In 15,786,796 223,615 -44,133 16,054,544 Transfer Out ---(673,081) (673,081) Total Other Financing Sources (Uses)15,792,411 280,151 12,525,000 7,531,052 36,128,614 Net Change in Fund Balances 2,541,674 218,756 8,138,588 7,014,701 17,913,719 Fund Balances, October 1 11,274,207 3,901,210 13,747,959 24,471,615 53,394,991 Adjust for Inventory under Purchases Method:--- 7,928,950 7,928,950 Fund Balances, September 30 13,815,881$ 4,119,966$ 21,886,547$ 39,415,266$ 79,237,660$ 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, 2010 28 Net change in fund balance - total governmental funds:17,913,719$ Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However, in the government-wide statement of activities the cost of those assets are allocated over their estimated useful lives as depreciation expense. This is the amount of capital assets recorded in the current period.10,758,263 The effect of various miscellaneous transactions involving capital assets (e.g., sales, trade ins, and contributions) is to increase net assets. Capital contributions 15,404,130$ Asset retirements/disposals (30,211) 15,373,919 Depreciation expense on capital assets is reported in the government-wide statement of activities, but they do not require the use of current financial resources. Therefore, depreciation expense is not reported as expenditure in governmental funds. (13,277,822) Some property tax, intergovernmental and ambulance revenues will not be collected for several months after the the city's fiscal year end. These are not considered "available" revenues in the governmental funds until received. (1,152,380) The issuance of long-term debt (i.e., bonds, certificates of obligation) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net assets. Also, governmental funds report the effect of issuance costs, premiums, discounts, and similar items when debt is first issued, whereas the amounts are deferred and amoritized in the statement of activities. This amount is the net effect of these differences in the treatment of long-term debt and related items. Bonds issued (23,900,000)$ Certificates of Obligation issued (1,050,000) Bond principal retirement 8,025,000 Certificate of Obligation principal retirement 3,950,000 (12,975,000) Bond premiums are recognized as an other financing source in the governmental funds, but are considered deferred assets on the Statement of Net Assets. Premiums are amortized over the life of the bonds. This is the amount by which bond premium issued, bond issuance costs and bond refunding losses exceeded amortization. 576,347 Payment of compensated absences is reported as an expenditure in the governmental funds when actually paid. However, on the government-wide statement of changes in net assets, compensated absences are expensed as they are accrued. Change in the compensated absences liability.(17,804) Long-term estimated liabilities are recognized as expenses in the Statement of Activities as incurred, but are recognized when current financial resources are used in the governmental funds. Includes Internal Service Funds' change in estimated long term liabilities liabilities: Net pension obligation (2,357,660)$ Other post retirement benefits (3,197,267) (5,554,927) Accrued interest expense on long-term debt is reported in the government-wide statement of activities, but does not require the use of current financial resources; therefore, accrued interest expense is not reported as expenditures in the governmental funds. Change in accrued interest. (52,806) Internal Service Funds are used by management to charge the costs of certain activities, such as insurance, fleet maintenance, and equipment replacement to individual funds. The net revenue of the internal service funds is reported with governmental activities net of the amount allocated to business-type activities and depreciation expense. Change in net assets (3,011,054)$ Net amount allocated to business activities 936,516 Depreciation expense 2,121,996 47,458 Change in Net Assets of governmental activities: 11,638,967$ The notes to the financial statements are an integral part of this statement. For the Fiscal Year Ended September 30, 2010 CITY OF COLLEGE STATION, TEXAS Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 29 Governmental Activities Electric Water Wastewater Other Enterprise Funds Total Enterprise Funds Internal Service Funds Current Assets Equity in Cash and Cash Equivalents 10,625,596$ 5,990,887$ 4,789,833$ 1,964,337$ 23,370,653$ 13,209,090$ Equity in Investments 788,730 444,699 355,546 88,628 1,677,603 980,501 Restricted Assets Equity in Cash and Cash Equivalents 405,331 528,050 541,045 - 1,474,426 - Equity in Investments 30,735 39,746 40,724 - 111,205 - Accrued Interest Receivable 93 3,955 1,230 - 5,278 - Receivables Accrued Interest 13,357 6,683 5,351 25,789 51,180 14,742 Accounts 13,934,164 2,584,625 1,642,375 1,010,867 19,172,031 79,224 Loans - - - 205,000 205,000 - Other 1,095,232 - - - 1,095,232 14,572 Less: Allowance for Uncollectible Accounts (2,732,647) (134,882) (235,573) (138,595) (3,241,697) (34,145) Due from Other Funds 40,000 40,000 40,000 - 120,000 - Inventories 1,272,687 336,961 33,893 14,955 1,658,496 78,030 Total Current Assets 25,473,278 9,840,724 7,214,424 3,170,981 45,699,407 14,342,014 Noncurrent Assets Restricted Assets Equity in Cash and Cash Equivalents 2,190,537 1,921,484 1,095,233 - 5,207,254 - Equity in Investments 161,954 142,081 80,736 - 384,771 - Total Restricted Assets 2,352,491 2,063,565 1,175,969 - 5,592,025 - Advance to Other Funds 120,000 120,000 120,000 - 360,000 - Equity in Joint Venture - - - 12,896,874 12,896,874 - Loans Receivable - - - 4,765,000 4,765,000 - Deferred Charges Bond Issuance Charges 422,268 407,074 369,560 (31,954) 1,166,948 - Accumulated Amortization (101,535) (122,505) (132,404) 90 (356,354) - Total Deferred Charges 320,733 284,569 237,156 (31,864) 810,594 - Property and Equipment Utility Plant 142,507,783 105,672,038 100,167,938 - 348,347,759 - Buildings - - - 5,743,755 5,743,755 786,525 Machinery and Equipment - - - 4,905,014 4,905,014 20,796,424 Accumulated Depreciation (63,621,550) (34,318,332) (33,426,829) (3,988,093) (135,354,804) (14,283,050) Construction in Progress 10,210,768 43,777,239 15,460,449 - 69,448,456 - Land - - - 690,707 690,707 - Total Property and Equipment 89,097,001 115,130,945 82,201,558 7,351,383 293,780,887 7,299,899 Total Noncurrent Assets 91,890,225 117,599,079 83,734,683 24,981,393 318,205,380 7,299,899 Total Assets 117,363,503 127,439,803 90,949,107 28,152,374 363,904,787 21,641,913 Liabilities Current Liabilities Accounts Payable 16,394,123 494,231 293,978 80,446 17,262,778 1,157,078 Retainage Payable 166,987 309,240 117,360 -593,587 - Accrued Liabilities 269,289 --61,469 330,758 - Customer Construction Advances 24,382 44,801 12,130 -81,313 - Other Deferred Revenues ---93,204 93,204 - Claims Payable -----1,630,623 Payable from Restricted Assets Accounts Payable 1,671 ---1,671 - Accrued Interest Payable 287,685 361,603 243,540 38,444 931,272 - Accrued Liablities 13,122 -2,662 -15,784 - Refundable Deposits 1,554,252 316,227 -6,670 1,877,149 - General Obligation Bonds ---760,000 760,000 - Certificates of Obligation 972,926 505,000 257,074 205,000 1,940,000 - Revenue Bonds 1,504,417 2,248,335 2,467,248 - 6,220,000 - Total Current Liablities 21,188,854 4,279,437 3,393,992 1,245,233 30,107,516 2,787,701 Noncurrent Liabilities General Obligation Bonds --- 3,070,000 3,070,000 - Certificates of Obligation 23,545,184 13,320,000 5,399,816 4,765,000 47,030,000 - Revenue Bonds 21,620,010 35,098,440 24,806,550 - 81,525,000 - Unamortized Premium/Discount on Debt (48,980)23,644 (35,428) 361,295 300,531 - Accrued Vacation 200,712 68,742 130,649 68,865 468,968 105,538 Post Employment Benefits 372,377 127,281 198,120 141,678 839,456 173,530 Net Pension Obligation 274,591 93,857 146,093 104,474 619,015 127,960 Total Noncurrent Liabilites 45,963,894 48,731,964 30,645,800 8,511,312 133,852,970 407,028 Total Liabilities 67,152,748 53,011,401 34,039,792 9,756,545 163,960,486 3,194,729 Net Assets Invested in Capital Assets, net of related debt 42,350,675 65,996,661 50,489,964 2,109,192 160,946,492 7,299,899 Restricted for: Debt service 439,066 567,796 581,769 - 1,588,631 4,635 Unrestricted 7,421,014 7,863,945 5,837,582 16,286,637 37,409,178 11,142,650 Total Net Assets 50,210,755$ 74,428,402$ 56,909,315$ 18,395,829$ 199,944,301$ 18,447,184$ Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds:1,828,110 Net assets business-type activites:201,772,411$ The notes to the financial statements are an integral part of this statement. CITY OF COLLEGE STATION, TEXAS Statement of Net Assets Proprietary Funds September 30, 2010 Business-type Activities - Enterprise Funds 30 Governmental Activities Electric Water Wastewater Other Enterprise Funds Total Enterprise Funds Internal Service Funds Operating Revenues Charges for Services 89,126,259$ 12,424,038$ 11,348,465$ 8,046,859$ 120,945,621$ 7,102,045$ Premiums -----8,946,885 Other 2,036,631 321,135 173,560 48,182 2,579,508 254,803 Total Operating Revenues 91,162,890 12,745,173 11,522,025 8,095,041 123,525,129 16,303,733 Operating Expenses Electric Operations 81,808,256 - - - 81,808,256 - Salaries and Benefits - 1,936,520 3,024,426 2,330,449 7,291,395 2,666,726 Supplies - 473,328 567,269 342,553 1,383,150 1,149,365 Maintenance - 91,016 159,506 476,680 727,202 47,482 Purchased Professional Services - 190,495 426,538 603,604 1,220,637 109,110 Purchased Property Services - 1,067,702 938,290 1,610,664 3,616,656 62,344 Other Purchased Services - 191,497 351,749 834,166 1,377,412 677,233 Claims -----7,320,720 Administration Fees -----1,436,180 Contributions -----2,788,213 Premiums -----1,203,225 Depreciation 4,734,798 3,287,399 3,480,522 465,808 11,968,527 2,121,996 Other - 490,603 (166,089) 207,738 532,252 23,256 Total Operating Expenses 86,543,054 7,728,560 8,782,211 6,871,662 109,925,487 19,605,850 Operating Income 4,619,836 5,016,613 2,739,814 1,223,379 13,599,642 (3,302,117) Nonoperating Revenues (Expenses) Investment Income 34,664 51,979 43,048 290,947 420,638 58,374 Gain (loss) on disposal of assets 104,614 3,351 - 74,651 182,616 - Intergovernmental -----13,914 Earnings in Joint Venture ---345,065 345,065 - Interest Expense (2,058,923) (2,408,693) (1,633,045) (363,122) (6,463,783)- Other Net 79 780 76 164 429 (41 563)114 810 262 908 CITY OF COLLEGE STATION, TEXAS Statement of Revenues, Expenses and Changes in Net Assets Proprietary Funds For the Fiscal Year Ended September 30, 2010 Business-type Activities - Enterprise Funds Other, Net 79,780 76,164 429 (41,563)114,810 262,908 Total Nonoperating Revenues (Expenses)(1,839,865) (2,277,199) (1,589,568)305,978 (5,400,654)335,196 Income Before Capital Contributions and Transfers 2,779,971 2,739,414 1,150,246 1,529,357 8,198,988 (2,966,921) Capital Contributions and Transfers Capital Contributions 1,367,544 4,373,749 3,686,526 2,275,216 11,703,035 - Transfers In 605,908 ---605,908 - Transfers Out (10,021,344) (2,562,403) (2,144,011) (1,215,480) (15,943,238)(44,133) Total Capital Contributions and Transfers (8,047,892) 1,811,346 1,542,515 1,059,736 (3,634,295)(44,133) Change in Net Assets (5,267,921) 4,550,760 2,692,761 2,589,093 4,564,693 (3,011,054) Beginning Net Assets 55,478,676 69,877,642 54,216,554 15,806,736 21,458,238 Ending Net Assets 50,210,755$ 74,428,402$ 56,909,315$ 18,395,829$ 18,447,184$ Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds:(936,516) Change in net assets of business-type activities:3,628,177$ The notes to the financial statements are an integral part of this statement. 31 Governmental Activities Other Total Internal Enterprise Enterprise Service Electric Water Wastewater Funds Funds Funds Cash Flows from Operating Activities: Cash Received from Customers 89,303,678$ 15,012,046$ 11,431,319$ 8,105,138$ 123,852,181$ 16,301,446$ Cash Payments to Suppliers for Goods and Services (75,992,808) (2,774,726) (2,841,544) (4,413,895) (86,022,973) (14,715,972) Cash Payments to Employees for Services (4,863,679) (1,715,746) (2,670,317) (2,084,556) (11,334,298) (2,363,324) Customer Deposits Received (130,225) (32,238) - (5,529) (167,992) - Cash Received for Miscellaneous Revenues 184,414 203,264 53,734 - 441,412 114,604 Net Cash Provided by Operating Activities 8,501,380 10,692,600 5,973,192 1,601,158 26,768,330 (663,246) Cash Flows from Noncapital Financing Activities: Transfers In from Other Funds 605,908 - - - 605,908 - Transfers Out to Other Funds (10,021,344) (2,562,403) (2,144,011) (1,215,480) (15,943,238) (44,133) Net Cash Used by Noncapital Financing Activities (9,415,436) (2,562,403) (2,144,011) (1,215,480) (15,337,330) (44,133) Cash Flows from Capital and Related Financing Activities: Acquisition and Construction of Capital Assets (6,374,496) (7,984,895) (2,666,017) (37,286) (17,062,694) (1,335,667) Proceeds from Sale of Assets 104,614 3,351 - 3,007 110,972 209,515 Principal Paid on Revenue Bonds (1,427,565) (2,089,450) (2,492,985) - (6,010,000) - Principal Paid on Certificates of Obligation (790,000) (430,000) (240,000) (5,060,000) (6,520,000) - Interest Paid on Revenue Bonds (1,089,633) (1,833,978) (1,359,738) - (4,283,349) - Interest Paid on Certificates of Obligation (924,932) (578,315) (237,469) (704,117) (2,444,833) - Proceeds from Certificates of Obligation 2,533,858 - 300,468 4,223,249 7,057,575 - Loan Made to Related Party - - - (5,121,519) (5,121,519) - Certificates of Obligation proceeds moved to Electric 5,121,519 - - (5,121,519) - - Debt Service reimbursed - - 835,450 835,450 - - Net Cash Used by Capital and Related Financing Activities (2,846,635) (12,913,287) (6,695,741) (10,982,735) (33,438,398) (1,126,152) Cash Flows from Investing Activities: Ph fI t t (4 743 671)(3 567 759)(3 193 164)(1 831 369)(13 335 963)(5 968 059) CITY OF COLLEGE STATION, TEXAS Statement of Cash Flows Proprietary Funds For the Fiscal Year Ended September 30, 2010 Business-type Activities - Enterprise Funds Purchase of Investments (4,743,671) (3,567,759) (3,193,164) (1,831,369) (13,335,963) (5,968,059) Proceeds from Sale and Maturities of Investment Securities 7,521,909 5,662,298 4,221,875 4,537,519 21,943,601 9,216,632 Investment Income 57,876 64,304 57,250 91,929 271,359 77,043 Net Cash Provided by Investing Activities 2,836,114 2,158,843 1,085,961 2,798,079 8,878,997 3,325,616 Net Increase (Decrease) in Cash and Cash Equivalents (924,577) (2,624,247) (1,780,599) (7,798,978) (13,128,401) 1,492,085 Cash and Cash Equivalents, Oct. 1 14,146,041 11,064,668 8,206,710 9,763,315 43,180,734 11,717,005 Cash and Cash Equivalents, Sept. 30 13,221,464$ 8,440,421$ 6,426,111$ 1,964,337$ 30,052,333$ 13,209,090$ 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 (Loss) 4,619,836$ 5,016,613$ 2,739,814$ 1,223,379$ 13,599,642$ (3,302,117)$ Adjustments to Reconcile Operating Income to Net Cash Provided (Used) by Operating Activities: Depreciation, Bad Debt Expense, Inventory Loss 4,734,798 3,287,399 3,480,522 482,856 11,985,575 2,121,996 Provision for Uncollectible Accounts 354,092 17,688 31,157 4,337 407,274 (25,801) Miscellaneous Nonoperating Revenues 3,046,985 2,983,762 83,529 (357,612) 5,756,664 (48,880) Miscellaneous Nonoperating Expenses (27,011) (68,306) (344,213) (54,582) (494,112) - Changes in Operating Assets and Liabilities: Change in Accounts Receivable (1,851,956) (730,933) (90,706) (24,732) (2,698,327) (2,287) Change in Deferred Revenues - - - 12,272 12,272 - Change in Inventory (123,436) (6,937) (986) 1,577 (129,782) (12,325) Change in Accounts Payable (2,875,117) 7,772 (178,434) 16,534 (3,029,245) 299,503 Change in Claims Payable - - - - - 80,708 Change in Accrued Liabilities (155,535) (67,470) (101,600) 54,730 (269,875) (77,445) Change in Refundable Deposits 130,225 32,238 - (5,529) 156,934 - Change in Accrued Vacation 1,531 (364) 9,896 1,776 12,839 1,912 Change in OPEB 372,377 127,281 198,120 141,678 839,456 173,530 Change in Net Pension Obligation 274,591 93,857 146,093 104,474 619,015 127,960 Total Adjustments 3,881,544 5,675,987 3,233,378 377,779 13,168,688 2,638,871 Net Cash Provided (Used) by Operating Activities 8,501,380$ 10,692,600$ 5,973,192$ 1,601,158$ 26,768,330$ (663,246)$ Noncash Operating, Financing, Capital and Investing Activities: During the Fiscal Year the Enterprise Fund added contributed capital in the amount of $11,703,035. Business-type Activities - Enterprise Funds CITY OF COLLEGE STATION, TEXAS Statement of Cash Flows Proprietary Funds For the Fiscal Year Ended September 30, 2010 The notes to the financial statements are an integral part of this statement. 33 34 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2010 City of College Station, Texas I. Summary of Significant Accounting Policies A. Financial Reporting Entity The City of College Station, Texas ("City"), the financial reporting entity presented in these financial statements, was incorporated in 1938 and is a municipal corporation incorporated under the provisions of H.B. 901 of the Texas Legislature. The City operates under a Council- Manager form of government and provides such services as authorized by its charter to advance the welfare, health, comfort, safety and convenience of the City and its inhabitants. The accounting and reporting policies of the City relating to the funds included in the accompanying basic financial statements conform to accounting principles generally accepted in the United States of America (GAAP) applicable to state and local governments. Generally accepted accounting principles for local governments include those principles prescribed by the Governmental Accounting Standards Board (GASB), the American Institute of Certified Public Accountants in the publication entitled State and Local Governments – Audit and Accounting Guide and by the Financial Accounting Standards Board (when applicable). As allowed in Section P80 of GASB’s Codification of Governmental Accounting and Financial Reporting Standards, the City has elected not to apply Financial Accounting Standards Board Statements and Interpretations, Accounting Principles Board Opinions, and Accounting Research Bulletins of the Committee of Accounting Procedure issued after November 30, 1989. 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. The more significant accounting policies of the City are described below. The City’s basic financial statements include the accounts of all City operations. The criteria for including organizations as component units within the City’s reporting entity, as set forth in Section 2100 of GASB’s Codification of Governmental Accounting and Financial Reporting Standards, include whether:  the organization is legally separate (can sue and be sued in their own name)  the City holds the corporate powers of the organization  the City appoints a voting majority of the organization’s board  the City is able to impose its will on the organization  the organization has the potential to impose a financial benefit/burden on the City  there is a fiscal dependency by the organization on the City. Based on the aforementioned criteria, the City has no component units. 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). B. Government-Wide and Fund Financial Statements The government-wide financial statements (e.g., the statement of net assets and the statement of activities) report information on all of the activities of the City. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. 35 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2010 City of College Station, Texas The statement of activities demonstrates the degree to which the direct expenses for a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include (1) charges to customers or applicants who purchase, use, or directly benefit from goods, services or privileges provided by a given function or segment and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. C. Measurement Focus, Basis of Accounting and Financial Statement Presentation Measurement focus refers to what is being measured; basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurement made, regardless of the measurement focus applied. The government-wide financial statements and fund financial statements for proprietary funds are reported using the economic resources measurement focus and the accrual basis of accounting. The economic resources measurement focus means all assets and liabilities (whether current or noncurrent) are included on the statement of net assets and the operating statements present increases (revenues) and decreases (expenses) in net total assets. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized as soon as they are both measurable and available. “Measurable” means the amount of the transaction can be determined and “available” means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The City considers revenues to be available if they are collected within 30 days of the end of the current fiscal period. Expenditures are generally recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to vacation, claims, and judgments, are recorded only when payment is due. Property taxes, other local taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and, therefore, have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when the City receives cash. The City reports the following major governmental funds: The General Fund is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. All general tax revenues and other receipts that are not restricted by law or contractual agreement to some other fund are accounted for in this fund. General 36 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2010 City of College Station, Texas operating expenditures, fixed charges and capital improvement costs that are not paid through other funds are paid from the General Fund. During the fiscal year, the City re-organized its fund structure to classify certain funds previously classified as a Special Revenue Fund as part of the General Fund. Please refer to the Supplementary Information for a reconciliation of the General Fund as previously reported to the General Fund as currently reported. The Debt Service Fund accounts for the financial resources that are restricted, committed, or assigned to expenditure for the payment of principal and interest on long-term debt paid primarily from taxes levied by the City. Financial resources that are being accumulated for principal and interest in future years are also reported in the Debt Service Fund. The Street Projects Fund accounts for the costs of new street construction, street improvements, and traffic signalization made with funds provided primarily 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, and workers' compensation claims and associated administrative expenses on a cost reimbursement basis; utility billing and collection activities related to the City's electric, water, and wastewater utilities and residential and commercial garbage collection; activities related to the management of the City's vehicles and heavy equipment, including preventative maintenance and vehicle repair; and activities related to the purchase and replacement of vehicles and large motorized equipment, telephone and radio systems, and technological infrastructure equipment not budgeted in other funds. In 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. 37 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2010 City of College Station, Texas Amounts reported as program revenues include (1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services in connection with the fund's principal ongoing operations. The principal operating revenues of the City's enterprise and internal service funds are charges for customer services including electric, water, wastewater, and sanitation fees, equipment purchase amounts, and risk management charges. Operating expenses for enterprise funds and internal service funds include the cost of services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, and then unrestricted resources as they are needed. D. Assets, Liabilities, and Net Assets or Equity Cash and Cash Equivalents Cash and cash equivalents are short term highly liquid investments that are (a) readily convertible to known amounts of cash and (b) so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Therefore, for purposes of the statement of cash flows, cash and cash equivalents (including restricted assets) include demand accounts, investment pools, money market mutual funds, and agency securities notes with original maturities of three months or less when purchased. All cash, except for petty cash accounts, is deposited with the City's depository bank in interest bearing accounts or is invested. The City uses a pooling method to account for cash and cash equivalents. Equity in cash and cash equivalents and interest income from the cash pool is allocated to the participating funds on a monthly basis. The amount of the allocation is determined by calculating a ratio of each fund's equity in the pool to the total pool. Investments Investments are made in accordance with the City's Investment Policy which was adopted by the City Council in October 2009. 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, public funds investment pools, and money market mutual funds. This policy states that the City’s Chief Financial Officer 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. 38 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2010 City of College Station, Texas As a general guideline, the City’s cash management portfolio is designed with the objective of meeting, over the course of full market cycles, the average return on three-month U.S. Treasury Bills, or the average rate of federal funds, whichever is higher. These indices are considered benchmarks for riskless investment transactions and therefore comprise a standard for the portfolio's rate of return. The investment program seeks to augment rates of return above this level. In a diversified portfolio, measured losses are inevitable and must be considered within the context of the overall portfolio. The objective in investment of construction funds is at least to match inflation increases in construction costs. Active portfolio management includes the practice of selling securities prior to maturity and using the proceeds to purchase other securities. Such "swaps" are performed for a variety of valid reasons: to lengthen maturities as interest rates rise, to secure market profits and shorten maturities as interest rates fall, and to take advantage of the differences in relative yield between different types of securities and varying maturities. "Swap" analysis is the responsibility of the City's Investment Officer and the decision to execute the "swap" rests with her. To protect the portfolio from imprudent trading, no security may be sold until such time as the current market value of the security plus interest earned from date of purchase is at least equal to the purchase price of that security. State statutes authorize the City to invest in fully-insured time deposits, direct debt securities of the United States or its agencies, and fully collateralized repurchase agreements. The repurchase agreements must be purchased pursuant to a master repurchase agreement which specifies that the transaction be held in a safekeeping account subject to the control and custody of the City. Investments in security repurchase agreements may be made only with the City's depository bank, with state or national banks domiciled in the state of Texas, or with securities dealers reporting to the Federal Reserve Bank of New York ("Primary Dealers"). All securities are purchased delivery-vs.-payment and held in the City's name in a safekeeping account at The Bank of New York. Investments of all funds consist mainly of Agency securities, a money market mutual fund with Fidelity, and investments in Texpool’s public funds investment pool. Investments are stated at fair value in accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools. The City also uses a pooling method to account for investments. Equity in investments and interest income from the investment pool is allocated to the participating funds on a monthly basis and is determined by calculating a ratio of each fund's equity in the investment pool to the total pool. GASB Statement No. 31 provides that governmental entities may report all investments at fair value or they may elect to report certain money market investments and participating interest- earning investment contracts at amortized cost. The City has elected to report all investments at fair value. Inventories, Assets Held for Resale and Prepaid Costs Inventories are accounted for using the consumption method and are valued at year-end based on cost, with cost determined using an average cost method. Assets held for resale include redevelopment properties, properties purchased and constructed with the express intent of resale. These assets are reported at cost in the governmental funds. 39 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2010 City of College Station, Texas Cemetery plots are another example of assets held for resale in the governmental funds. City ordinance stipulates the percentage of the cemetery plot sales to be allocated to the operational fund. These assets held for resale in the non-major governmental Community Development and Cemetery funds are reported as inventory in the financial statements and accounting for using the purchases method. Payments made to vendors for services that will benefit periods beyond September 30, 2010, are recorded as prepaid costs with a reserve for prepaid items recognized in the governmental funds in the fund level financial statements to signify that a portion of fund balance is not available for other subsequent expenditures. Interfund Transactions and Receivables/Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as "due to/from other funds." Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances." Transactions between Funds The City allocates an indirect cost percentage of administrative services paid through the General Fund along with other indirect costs deemed necessary for the operation of the proprietary funds, internal service funds and the other governmental funds. Restricted Assets In the Enterprise Funds, proceeds of utility revenue bonds and certificates of obligation, as well as resources set aside for their repayment, are classified as restricted assets on the balance sheet because their use is limited by applicable bond covenants. In addition, customer utility deposits are classified as restricted assets because the deposit remains the property of the customer and is not available for operations. In the General Fund, restricted assets are comprised of Municipal Court cash bonds. Investment in Joint Venture The Proprietary Funds' investment in joint venture is recorded using the equity method of accounting. Required disclosures concerning the joint venture are presented in Note V-C. Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business- type activities columns in the government-wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of three years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. Assets owned by the electric utility are capitalized in accordance with Federal Energy Regulatory Commission (FERC) guidelines. Furthermore, assets owned by either the water or 40 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2010 City of College Station, Texas wastewater utilities are capitalized in accordance with the National Association of Regulatory Utility Commissioners (NARUC) guidelines. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend the asset's useful life are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. In accordance with Financial Accounting Standards Board Statement No. 71, interest is not capitalized during construction of capital assets of business-type activities because interest is recovered currently in the City's established rate structure. Depreciation of all assets is recorded and calculated using the straight-line method over the following estimated useful lives: Electric System 1-50 Years Water System 2-50 Years Wastewater System 2-50 Years Infrastructure 10-50 Years Buildings and Building Improvements 5-50 Years Land Improvements 10-45 Years Machinery and Equipment 5-20 Years Motor Vehicles 3-12 Years Furniture, Fixtures and Office Equipment 5-20 Years Compensated Absences Employees are credited with vacation at rates of 10 to 20 days per year, depending upon length of service. Carryover of unused vacation time from one year to the next is allowed for a maximum of two years. Upon termination, the respective employees are paid for any accrued vacation not taken (up to the two-year maximum). Accumulated vacation is accrued when earned in the government-wide and proprietary fund financial statements. No liability has been recorded in the governmental fund financial statements. Employees are credited with sick leave at the rate of one day per month. There is no maximum to the number of sick days that each employee can accumulate. Because the City does not pay employees for unused accumulated sick leave, no related liability has been recorded in the financial statements. Long-Term Obligations In the government-wide financial statements and in the fund financial statements for the proprietary fund types, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund statement of net assets. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discount and deferred amounts on refundings. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. 41 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2010 City of College Station, Texas Fund Equity In the fund financial statements, governmental funds report fund balance classifications that comprise a hierarchy based primarily on the specific purposes for which amounts in those funds can be spent. In the fiscal year ended September 30, 2009, the City adopted the Governmental Accounting Standards Board Statement (GASBS) number 54, “Fund Balance Reporting and Governmental Fund Type Definitions.” GASBS 54 provides for and the City uses the following classifications: Nonspendable Fund Balance includes amounts that cannot be spent because they are not in spendable form. The “not in spendable form” criterion includes items that are not expected to be converted to cash, for example, inventories and prepaid amounts. It also includes the long- term amount of loans receivable as well as property acquired for resale. Restricted Fund Balance is reported when constraints placed on the use of resources are either (a) externally imposed by creditors, grantors, contributors, or laws or regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation. Committed Fund Balance includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the government’s highest level of decision- making authority. These committed amounts cannot be used for any other purpose unless the government removes or changes the specified use by taking the same type of action (for example, resolution or ordinance) it employed to previously commit these amounts. Assigned Fund Balance includes amounts that are constrained by the government’s intent to be used for specific purposes, but are neither restricted nor committed. Intent is expressed by the governing body itself or a body (a budget or finance committee, for example) or official to which the governing body has delegated the authority to assign amounts to be used for specific purposes. Assignments may not result in a deficit in Unassigned Fund Balance. Unassigned Fund Balance is the residual classification for the General Fund. This classification represents fund balance that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the General Fund. In other governmental funds, if expenditures incurred for specific purposes exceeded the amounts restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance. E. Budgetary Control The City follows these procedures in establishing the budgetary data: 1. Prior to September 1, the City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following October 1. The operating budget includes proposed expenditures and the means for financing them. 2. All budget requests are compiled by the Office of Budget and Strategic Planning and then presented with comparative and supporting data to the Mayor and City Council for review. 3. Public hearings are properly advertised and conducted at City Hall for taxpayer comments. 4. Prior to September 27, the budget is legally enacted through passage of an ordinance. 42 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2010 City of College Station, Texas 5. The City Council must approve all transfers of budgeted amounts between departments within any fund and any revision that alters the total expenditures of any fund. An amount is also budgeted each year for contingencies which may arise. The Council has authorized the City Manager to make budget transfers for contingencies if the amount does not exceed $15,000. All other transfers must be approved by City Council. City Council may transfer amounts among individual budget line items within major expenditure categories during the year, but no such transfer may increase the overall total budget. Budgeted amounts as originally adopted were not significantly changed by such transfers during the year. 6. In accordance with the City Charter, the budget may be amended after the following conditions are met: (a) The City Manager certifies that there are available revenues in excess of those estimated in the budget. (b) The City Council holds a public hearing on the supplemental appropriation. (c) The City Council approves the supplemental appropriation. Management may not amend the budget without seeking the approval of the City Council. F. Budget Basis of Accounting The City prepares its annual budget on a basis (budget basis) which differs from a GAAP basis. The budget and all transactions are presented in accordance with the City’s method (budget basis) in the Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual - General Fund to provide a meaningful comparison of actual results with the budget. The differences between budget and GAAP basis in the General Fund are that reimbursements and transfers of indirect costs are shown as Reimbursed Administration and interfund loan transactions are treated as transfers for budget basis. Consistent with the purchases method, assets held for resale are treated as expenditures for budget purposes. Additionally, for the fiscal year ended September 30, 2010, there is a timing difference in the accrual of a loss claim for GAAP purposes that will be budgeted for in the subsequent fiscal year when the claim is paid. II. Minimum Fund Balance/Operating Reserve Policies The unobligated (unassigned) fund balance in the General Fund should be at least 15% of the annual budgeted General Fund expenditures. This percentage is the equivalent of 55 days expenditure. An additional amount of 3.0% should be maintained for extraordinary items or contingencies. Cash and investments alone should be equivalent to 30 days operating expenditure. The working capital (current assets less current liabilities) in the enterprise funds should be maintained at 15% of total operating expenses or the equivalent of 55 days. Cash and Investments alone should be equivalent to 30 days of operations. 43 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2010 City of College Station, Texas III. Stewardship, Compliance, and Accountability A. Budgetary Information The Council approved four budget amendments during fiscal year 2010. These four budget amendments included the following appropriations: Purchased Power 5,375,000$       Community Development Block Grant Land Purchase 2,380,623         Holleman Extension ‐ Oversized Participation 1,251,454         Fiscal Year 2010 Encumbrance Roll 834,724             Electric Debt Service Payment 757,254             Energy grant ‐ Parks retrofits 639,033             Arts Council Building Purchase 520,000             Fire Department 335,031             Legal Costs 300,000             Wellborn/ F&B Traffic Signal 250,000             Wastewater Collection System Planning 209,500             Economic Development 200,000             e‐Ticket Replacement 100,000             Educational and Governmental Communication 71,360               Zone 4 Parkland Dedication Land Purchase 55,548               Stephen C Beachy Central Park Improvements 54,000               Chimney Hill Property roof replacement 50,000               Court Technology 50,000               Lick Creek Wastewater Treatment Plant Forklift 42,000               Police Patrol Vehicle Replacement 38,468               Energy grant ‐ Transfer Local Match for Hybrid Vehicle Purchase 37,022               JAG grant 2nd Allocation 22,436               Uninterupted Power Supply Replacement 14,222               13,587,675$     44 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2010 City of College Station, Texas The Council approved four budget amendments during fiscal year 2010. These four budget amendments included the following budget reductions: CIP Department (7,000)$ Planning & Development Services (87,000) Fiscal Services (105,138) Information Technology (120,027) Parks & Recreation Department (147,905) General Government (151,798) Public Works Department (245,730) Police Department (265,687) General Fund Pay PlanContingency (273,000) Equipment Replacement Reduced Contribution (467,887) (1,871,172)$ 1. Budget appropriations are adopted at the fund level for all funds except the General Fund. In the General Fund, budget appropriations are adopted at the department level. Expenditures in excess of appropriations for each fund are prohibited by the City Charter. Appropriations that have not been expended or lawfully encumbered lapse at the end of the budget year. 2. Formal budgetary integration is legally enacted and employed as a management control device during the year for all funds. 3. Encumbrance accounting is employed in governmental funds. Encumbrances (e.g., purchase orders, contracts) outstanding at year end are reported as reservations of fund balances and do not constitute expenditures or liabilities. B. Excess of Expenditures Over Appropriations The amounts of any excesses of expenditures over appropriations during fiscal year 2010, and the funds in which they occurred are as follows: Fund Amount General Fund, Capital Improvement Projects 17,394$            General Fund, Library 2,108                 General Fund, Contributions 1,000                 General Fund, Other 35,064               Business Park Fund (General Fund), Capital Improvement Projects 2,050                 Police Seizure Fund 26,381               Cemetery Perpetual Care Fund 3,113                 Hotel Occupancy Tax Fund 25,748               Drainage Projects Fund 703,777            General Government Project Fund 1,113,783         Debt Service fund 65,931               The expenditures in the Business Park, Drainage Projects and General Government Projects were budgeted in prior years. Overall, these projects remained within budget. 45 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2010 City of College Station, Texas 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 17,695,504$ 1 Money Market Account 20,136,145 1 Certificates of Deposits 15,057,824 177 U.S. Agency Securities 9,115,313 230 Texas Local Government Investment Pool 57,434,210 1 119,438,996$ Portfolio Weighted Average Maturity 37 Interest rate risk. In accordance with the City's Investment Policy, interest rate risk is managed by limiting the weighted average maturity of the investment portfolio to two years (approximately 720 days) or less and by limiting the maximum maturity of any security purchased to five years or less. Credit risk. Investments authorized by the City’s policy are those approved by the revised State of Texas Public Funds Investment Act of 1997 and the Texas Public Collateral Act of 1989. These investments include the following:  Obligations of the United States or its agencies and instrumentalities;  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;  Certificates of deposit insured by the FDIC and issued by state and national banks domiciled in Texas that are secured by obligations qualified as acceptable collateral;  Repurchase agreements or reverse repurchase agreements;  Commercial paper with a stated maturity of 180 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; or  Public funds investment pools. 46 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2010 City of College Station, Texas As of September 30, 2010, the City’s investments were rated by Standard & Poor's and Moody's as follows: S&P Moody's Texpool AAAm N/A* TexSTAR AAAm N/A* Federal Home Loan Bank AAA Aaa Federal National Mortgage Association AAA Aaa Federal Farm Credit Bank AAA Aaa *Texpool and TexSTAR are 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% and Certificates of Deposit to 20%. At September 30, 2010, the issuers whose securities represented more than 5% of the City's investment portfolio were as follows: the Federal Home Loan Bank (7%), American Momentum Bank (9%) and Citibank (6%). Custodian credit risk - deposits. In the case of deposits, this is the risk that in the event of a bank failure, the government's deposits may not be returned to it. The City of College Station's City Council has approved a depository services contract which governs its depository relationship. This contract requires that deposits not covered by depository insurance be collateralized at 105%. Custodian credit risk - investments. For an investment, this is the risk that, in the event of the failure of the counterparty, the government will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The City's investment portfolio requires that all security transactions be conducted on a Delivery-vs.- Payment basis and that all securities be held by a third party custodian and evidenced by safekeeping receipts. 47 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2010 City of College Station, Texas 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 Street Service Fund General Service Projects Nonmajor Allocation Total Taxes: Property 485,533$ 409,300$ -$ -$ -$ 894,833$ Beverage 96,654 - - - - 96,654 Sales 1,664,611 - - - - 1,664,611 Subtotal Taxes 2,246,798 409,300 - - - 2,656,098 Accrued Interest 12,726 4,277 23,189 32,033 14,557 86,782 Grants 27,126 - - 257,035 - 284,161 Accounts/Charges for Services 1,167,275 - 373,512 857,955 36,288 2,435,030 Loans - - - 603,092 - 603,092 Miscellaneous 27,898 - - - 2,500 30,398 Total Gross Governmental 3,481,823 413,577 396,701 1,750,115 53,345 6,095,561 Less Allowance for Uncollectible Accounts (55,890) - - (102,647) (4,165) (162,702) Net Total Receivables 3,425,933$ 413,577$ 396,701$ 1,647,468$ 49,180$ 5,932,859$ Business-type Activities:Internal Service Fund Electric Water Wastewater Nonmajor Allocation Total Accrued Interest 13,450$ 10,638$ 6,581$ 25,789$ 185$ 56,643$ Accounts/Charges for Services 13,934,164 2,584,625 1,642,375 1,010,867 42,936 19,214,967 Loans - - - 4,970,000 - 4,970,000 Miscellaneous 1,095,232 - - - 12,072 1,107,304 Total Gross Business-type 15,042,846 2,595,263 1,648,956 6,006,656 55,193 25,348,914 Less Allowance for Uncollectible Accounts (2,732,647) (134,882) (235,573) (138,595) (29,980) (3,271,677) Net Total Receivables 12,310,199$ 2,460,381$ 1,413,383$ 5,868,061$ 25,213$ 22,077,237$ Loans Receivable in the nonmajor governmental funds are made up of a $500,000, 40-year loan of HOME Investment Partnership (HOME) funds for Santour Court, an affordable, single- family residential development and $103,092 in HOME down-payment assistance loans for eligible HOME participants. The loans are made with Federal funds from the Department of Housing and Urban Development (HUD). 48 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2010 City of College Station, Texas Loans Receivable in the nonmajor business-type funds represent BVSWMA, Inc.’s obligation to reimburse 2009 College Station Certificate of Obligation debt issued and used to construct the Twin Oaks Landfill. The annual principal and interest receivable amounts are as follows: Year Ended September 30, Principal Interest 2011 205,000$ 190,535$ 2012 215,000 184,235 2013 220,000 177,710 2014 230,000 170,960 2015 240,000 163,910 2016-2020 1,150,000 705,089 2021-2025 1,365,000 462,767 2026-2030 1,345,000 125,573 4,970,000$ 2,180,779$ Due from Related Party 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 894,833$ -$ 894,833$ Hotel Occupancy Tax 212,234 - 212,234 Paving Assessments 373,512 - 373,512 Intergovernmental 249,244 603,070 852,314 Fines and Penalties - 155,450 155,450 Emergency Services 680,196 - 680,196 Cemetery Plot Sales 97,346 3,200 100,546 Other 24,753 47,942 72,695 2,532,118$ 809,662$ 3,341,780$ 49 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2010 City of College Station, Texas C. Capital Assets Capital asset activity for the year ended September 30, 2010 was as follows: Beginning Ending Governmental Activities Balance Increases Decreases Adjustments Balance Capital Assets, Not Being Depreciated Land 37,308,851$ 5,390,705$ -$ -$ 42,699,556$ Construction in Progress 21,797,129 8,160,433 (21,220,453) (1,090,795) 7,646,314 Total Capital Assets, Not Being Depreciated 59,105,980 13,551,138 (21,220,453) (1,090,795) 50,345,870 Capital Assets, Being Depreciated Buildings and Building Improvements 28,300,794 6,908,886 (78,553) - 35,131,127 Improvements Other Than Buildings 32,025,931 2,139,050 (12,065) (182,606) 33,970,310 Machinery and Equipment 32,392,265 2,508,613 (2,660,888) (3,078,559) 29,161,431 Infrastructure 199,087,566 24,922,725 - 182,606 224,192,897 Total Capital Assets, Being Depreciated 291,806,556 36,479,274 (2,751,506) (3,078,559) 322,455,765 Less Accumulated Depreciation for: Buildings and Building Improvements 7,694,188 985,935 (55,118) - 8,625,005 Improvements Other Than Buildings 10,762,721 1,479,468 (12,065) - 12,230,124 Machinery and Equipment 20,481,550 3,003,792 (2,353,430) (1,960,571) 19,171,341 Infrastructure 97,140,485 7,808,627 - - 104,949,112 Total Accumulated Depreciation 136,078,944 13,277,822 (2,420,613) (1,960,571) 144,975,582 Total Capital Assets Being Depreciated, Net 155,727,612 23,201,452 (330,893) (1,117,988) 177,480,183 Governmental Type Activities Capital Assets, Net 214,833,592$ 36,752,590$ (21,551,346)$ (2,208,783)$ 227,826,053$ Beginning Ending Business-Type Activities Balance Increases Decreases Adjustments Balance Capital Assets, Not Being Depreciated Land 690,707$ -$ -$ -$ 690,707$ Construction in Progress 69,561,781 20,755,693 (20,869,018) - 69,448,456 Total Capital Assets, Not Being Depreciated 70,252,488 20,755,693 (20,869,018) - 70,139,163 Capital Assets, Being Depreciated Electric System 135,098,163 9,046,810 (227,107) - 143,917,866 Water System 92,167,537 17,269,884 (3,765,383) - 105,672,038 Wastewater System 92,629,405 7,778,421 (239,888) - 100,167,938 Buildings and Building Improvements 5,743,755 - - - 5,743,755 Machinery and Equipment 637,081 1,338,520 (149,146) 3,078,559 4,905,014 Total Capital Assets, Being Depreciated 326,275,941 35,433,635 (4,381,524) 3,078,559 360,406,611 Less Accumulated Depreciation for: Electric System 60,298,873 4,780,535 (466,358) 64,613,050 Water System 31,076,895 3,287,399 (45,962) - 34,318,332 Wastewater System 30,149,493 3,480,522 (203,186) - 33,426,829 Buildings and Building Improvements 1,090,250 192,506 - - 1,282,756 Machinery and Equipment 548,248 235,234 (38,716) 1,960,571 2,705,337 Total Accumulated Depreciation 123,163,759 11,976,196 (754,222) 1,960,571 136,346,304 Total Capital Assets Being Depreciated, Net 203,112,182 23,457,439 (3,627,302) 1,117,988 224,060,307 Business Type Activities Capital Assets, Net 273,364,670$ 44,213,132$ (24,496,320)$ 1,117,988$ 294,199,470$ 50 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2010 City of College Station, Texas During the fiscal year, capital assets previously capitalized in the Internal Service Equipment Replacement Fund were adjusted into the Sanitation Fund which owns the asset. Depreciation expense was charged to governmental activities of the City as follows: Governmental Activities Planning and Development Services 6,798$ Fire 223,265 Fiscal Services 44,563 General Government 226,750 Information Services 329,147 Parks and Recreation 1,217,526 Library 63,834 Police 118,488 Public Works 7,923,286 Non-departmental 1,047,906 Capital Assets Held by the City's Internal Service Funds 2,076,259 Total Depreciation Expense 13,277,822$ 51 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2010 City of College Station, Texas D. Interfund Transactions Transfers between funds during the year were as follows: Governmental Business-type Transfers In Transfers Out Activities, net Activities, net Governmental Activities: General Fund 15,786,796$ -$ 15,786,796$ -$ Debt Service Fund 223,615 - 223,615 - Nonmajor Governmental Funds: Special Revenue Funds: American Recovery and Reinvestment Act (ARRA) 37,022 - 37,022 - Traffic Safety - (10,052) (10,052) - Hotel Occupancy Tax - (223,615) (223,615) - Drainage - (439,414) (439,414) - Capital Projects Funds: General Government Projects 7,111 - 7,111 - Business-type Activities: Enterprise Funds: Electric 605,908 (10,021,344) - (9,415,436) Water - (2,562,403) - (2,562,403) Wastewater - (2,144,011) - (2,144,011) Nonmajor Proprietary Funds: Sanitation - (1,112,413) - (1,112,413) Northgate Parking Garage - (103,067) - (103,067) Internal Service Funds: Equipment Replacement - (44,133) (44,133) - 16,660,452$ (16,660,452)$ 15,337,330$ (15,337,330)$ Transfers are used to (1) move revenues from the funds with collection authorization to the debt service fund as debt service principal and interest payments become due, (2) move revenues from enterprise funds to the general fund to record the return on the investment, (3) move revenues from enterprise funds to the general fund for economic development activity, (4) move unrestricted general fund revenues to finance various programs that the government must account for in other funds in accordance with budgetary authorizations. 52 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2010 City of College Station, Texas The composition of due to/due from balances as of September 30, 2010 is as follows: Business-type Governmental Activities:Activities: Due To Due From Amount Water Fund Economic Development 40,000$ Wastewater Economic Development 40,000$ Electric Fund Economic Development 40,000$ Advance From Advance To Amount Water Fund Economic Development 120,000$ Wastewater Economic Development 120,000$ Electric Fund Economic Development 120,000$ Internal loans (inter-fund advances) of $200,000 each from the Water, Wastewater and Electric Funds to the Economic Development Fund were recorded during the fiscal year ended September 30, 2008. The loans partially funded the purchase of real property related to an economic development project and are repayable in even installments over five years. No payment was made in the fiscal year ended September 30, 2010. E. Deferred Charges See Note IV B. F. Operating Lease as Lessor The city acquired property on University Drive known as the Chimney Hill Property in fiscal year 2009 with the intention to build a convention center on the property. Hotel tax funds were used to finance $7,000,000 of the purchase, with the remainder of the purchase price coming from Certificate of Obligation, Series 2009. The purchase price was allocated between the land, $6,555,190, and an existing building on the property, $3,084,795, which at the end of September 30, 2010, carried $123,392 in accumulated depreciation (net building value of $2,961,403). The building at Chimney Hill was partially leased to private businesses when the City acquired the property. At September 30, 2010, one space is being rented on a month-to-month basis to Western Beverage. Two other spaces have non-cancelable leases. The operating rentals on the non-cancelable leases are as follows: Year Ended September 30, Republic DaVita Total 2011 99,666$ 237,817$ 337,483$ 2012 102,656 210,687 313,343 2013 105,736 105,736 2014 108,373 108,373 2015 112,176 112,176 2016-2020 164,274 164,274 692,881$ 448,504$ 1,141,385$ Non-cancelable Operating leases as Lessor 53 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2010 City of College Station, Texas G. Long-Term Debt A summary of long-term debt transactions, including current portion, for the year ended September 30, 2010 is as follows: Amounts Beginning Incurred/ Matured/Ending Due Within Balance Issued Retired Balance One Year Governmental Activities: General Obligation Bonds 59,145,000$ 23,900,000$ 8,025,000$ 75,020,000$ 5,085,000$ Certificates of Obligation 38,575,000 1,050,000 3,950,000 35,675,000 2,495,000 Total bonds payable 97,720,000 24,950,000 11,975,000 110,695,000 7,580,000 Accrued Vacation 2,526,728 1,409,294 1,387,555 2,548,467 187,398 TMRS Net Pension Obligaton 1,005,780 5,738,455 4,386,575 2,357,660 - OPEB liability - 3,485,255 287,988 3,197,267 - Governmental Activity Long Term Debt 101,252,508$ 35,583,004$ 18,037,118$ 118,798,394$ 7,767,398$ Business Type Activities: General Obligation Bonds -$ 3,830,000$ -$ 3,830,000$ 760,000$ Certificates of Obligation 52,285,000 2,850,000 6,165,000 48,970,000 1,940,000 Utility Revenue Bonds 93,755,000 - 6,010,000 87,745,000 6,220,000 Total bonds payable 146,040,000 6,680,000 12,175,000 140,545,000 8,920,000 Accrued Vacation 515,280 468,702 457,887 526,095 26,304 TMRS Net Pension Obligaton 294,172 1,678,393 1,282,993 689,572 - OPEB liability - 1,019,371 84,231 935,140 - Business Type Activity Long Term Debt 146,849,452$ 9,846,466$ 14,000,111$ 142,695,807$ 8,946,304$ 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 $48,410 of internal service funds’ accrued vacation was included in governmental activities, and $57,129 of accrued vacation for the utility customer service fund was included in business type activities. For the governmental activities, accrued vacation is generally liquidated by the general fund. Long-term debt at September 30, 2010 includes the following individual issues (not including unamortized premiums or discounts): 54 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2010 City of College Station, Texas Interest Issue Maturity Original Net Rate (%) Date Date Issue Retirement Outstanding General Obligation Bonds: 1998 Issue 4.65-4.85 4/1/98 2/15/11 6,200,000$ 6,200,000$ -$ 1999 Issue 4.25-5.00 4/15/99 2/15/17 6,230,000 6,230,000 - 2000 Issue 5.00-5.20 4/1/00 2/15/11 8,460,000 8,460,000 - 2001 Issue 4.00-5.50 8/1/01 2/15/17 4,140,000 2,550,000 1,590,000 2002 Issue 4.25-5.125 3/1/02 2/15/21 6,445,000 2,320,000 4,125,000 2003 Issue 3.00-4.50 7/1/03 2/15/23 4,790,000 1,160,000 3,630,000 2004 Issue 2.875-5.00 5/1/04 2/15/24 12,940,000 5,100,000 7,840,000 2005 Issue 4.00-6.00 5/1/05 2/15/25 5,710,000 1,280,000 4,430,000 2006 Issue 4.375-6.375 7/1/06 2/15/26 7,375,000 1,445,000 5,930,000 2006 Issue - Refunding 4.00-5.00 12/1/06 2/15/18 10,255,000 390,000 9,865,000 2007 Issue 4.25-6.25 9/1/07 2/15/27 3,930,000 1,330,000 2,600,000 2008 Issue 4.0 - 5.0 9/1/08 2/15/28 9,455,000 1,585,000 7,870,000 2009 Issue 3.5 - 4.0 7/15/09 2/15/21 3,335,000 95,000 3,240,000 2009 Issue - Refunding 2.00-4.00 11/15/09 2/15/20 4,265,000 - 4,265,000 2010 Issue 2.00-3.50 8/15/10 2/15/30 19,635,000 - 19,635,000 113,165,000$ 38,145,000$ 75,020,000$ Certificates of Obligation - Governmental Activities: 2000 Issue 5.00-5.125 4/1/00 2/15/10 4,050,000$ 4,050,000$ -$ 2001 Issue 4.00-5.00 8/1/01 2/15/20 3,650,000 2,595,000 1,055,000 2002 Issue 4.25-5.125 3/1/02 2/15/20 14,480,000 7,175,000 7,305,000 2003A Issue 2.90-4.20 7/1/03 2/15/23 780,000 190,000 590,000 2005 Issue 3.00-4.50 5/1/05 2/15/25 7,595,000 4,475,000 3,120,000 2006 Issue 4.375-6.375 7/1/06 2/15/26 8,325,000 1,820,000 6,505,000 2007 Issue 4.25-6.25 9/1/07 2/15/27 3,960,000 1,335,000 2,625,000 2008 Issue 3.25 - 5.0 9/1/08 2/15/28 10,515,000 1,690,000 8,825,000 2009 Issue 3.00-5.00 7/15/09 2/15/29 6,480,000 1,880,000 4,600,000 2010 Issue 2.00-3.50 8/15/10 2/15/30 1,050,000 - 1,050,000 60,885,000$ 25,210,000$ 35,675,000$ General Obligation Bonds - Business-type Activities: 2009 Issue - Refunding 2.00-4.00 11/15/09 2/15/20 3,830,000$ -$ 3,830,000$ Certificates of Obligation - Business-type Activities: 2000A Issue 4.75-5.50 8/1/00 2/15/20 6,385,000$ 6,385,000$ -$ 2004 Issue 2.875-5.00 5/1/04 2/15/24 8,915,000 1,750,000 7,165,000 2008 Issue 3.25 - 5.0 9/1/08 2/15/28 15,925,000 1,035,000 14,890,000 2009 Issue 3.00-5.00 7/15/09 2/15/29 24,835,000 770,000 24,065,000 2010 Issue 2.00-3.50 8/15/10 2/15/30 2,850,000 - 2,850,000 58,910,000$ 9,940,000$ 48,970,000$ Utility Revenue Bonds: 1998 Issue 4.65-4.80 4/1/98 2/1/10 2,700,000$ 2,700,000$ -$ 2000 Issue 5.00-5.25 4/1/00 2/1/12 10,500,000 9,235,000 1,265,000 2001 Issue 4.50-5.50 8/1/01 2/1/21 23,500,000 7,475,000 16,025,000 2002 Issue 4.00-6.00 3/1/02 2/1/22 18,215,000 5,115,000 13,100,000 2003 Issue - Refunding 3.50-4.25 12/1/02 2/1/14 11,160,000 7,230,000 3,930,000 2003A Issue 2.50-4.25 7/1/03 2/1/23 4,850,000 1,185,000 3,665,000 2005 Issue 4.00-5.50 5/1/05 2/1/25 8,035,000 1,195,000 6,840,000 2005A Issue - Refunding 3.00-5.25 8/1/05 2/1/18 12,995,000 1,870,000 11,125,000 2006 Issue 4.375-6.375 7/1/06 2/1/26 16,950,000 2,075,000 14,875,000 2007 Issue 4.00-5.75 9/1/07 2/1/27 18,665,000 1,745,000 16,920,000 127,570,000$ 39,825,000$ 87,745,000$ 55 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2010 City of College Station, Texas The annual requirements to amortize debt outstanding as of September 30, 2010 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: General Obligation Certificates of Obligation Year Ended September 30,Principal Interest Principal Interest 2011 5,085,000$ 2,793,790$ 2,495,000$ 1,497,018$ 2012 5,245,000 2,643,982 2,060,000 1,411,822 2013 5,200,000 2,441,059 2,170,000 1,327,497 2014 5,060,000 2,240,847 2,275,000 1,237,234 2015 5,065,000 2,041,946 2,390,000 1,139,581 2016-2020 21,855,000 7,447,932 11,775,000 4,147,885 2021-2025 17,210,000 3,645,201 8,420,000 1,913,908 2026-2030 10,300,000 834,796 4,090,000 277,819 75,020,000$ 24,089,553$ 35,675,000$ 12,952,764$ General Obligation Certificates of Obligation Utility Revenue Year Ended September 30, Principal Interest Principal Interest Principal Interest 2011 760,000$ 103,000$ 1,940,000$ 1,929,841$ 6,220,000$ 3,975,141$ 2012 380,000 84,000 2,035,000 1,874,343 6,450,000 3,660,301 2013 390,000 76,300 2,135,000 1,805,868 6,700,000 3,344,634 2014 395,000 67,463 2,235,000 1,734,116 6,715,000 3,026,123 2015 410,000 56,375 2,360,000 1,656,680 6,265,000 2,712,142 2016-2020 1,495,000 111,012 12,385,000 6,909,047 30,785,000 9,131,841 2021-2025 - - 14,745,000 4,110,583 20,395,000 2,962,976 2026-2030 - - 11,135,000 959,907 4,215,000 162,460 3,830,000$ 498,150$ 48,970,000$ 20,980,385$ 87,745,000$ 28,975,618$ Business-Type Activities Governmental Activities The City intends to retire virtually all of its general long-term liabilities, plus interest, from ad valorem taxes. Hotel Occupancy Tax retires the portion of the Series 2009 Certificate of Obligation used to purchase the future convention center site property. During the fiscal year ended September 30, 2010, $223,615 in Hotel Occupancy Taxes retired $95,000 principal and $128,615 interest on the $3,220,000 Certificate of Obligation. Proceeds from the Series 2009 Certificates of Obligation also included the construction of a new municipal landfill. As described in Note V.C., the City of College Station jointly owns Brazos Valley Solid Waste Management Agency (BVSWMA) with the City of Bryan. In fiscal year 2009, $10,290,000 Certificates of Obligation, Series 2009, moved to the Sanitation Fund to pay for the new BVSWMA landfill site. In fiscal year 2010, the Cities of Bryan and College Station each decided that $5,145,000 would be needed and used from each city. College Station transferred $5,145,000 from Sanitation to the Electric Utility Fund and $5,145,000 to BVSWMA in fiscal year 2010. As reflected in Note IV. B., BVSWMA has pledged to repay the $5,145,000 plus interest to the City of College Station. At September 30, 2010, the amount owed by BVSWMA to College Station was $4,970,000. Proprietary fund type long-term debt used for Electric, Water and Wastewater projects will be repaid, plus interest, from the operating revenues of the Electric, Water, and Wastewater Funds. 56 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2010 City of College Station, Texas 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 general obligation bonds and certificate indentures. The City is in compliance with the significant limitations and restrictions at September 30, 2010. On November 15, 2009, the City issued $8.095 million General Obligation Refunding Bonds, Series 2009. The advanced refunding of General Obligation Improvement Bonds, Series 1998, 1999, 2000 and Certificates of Obligation 2000A was undertaken to reduce total general obligation debt service payments over the next 10 years by $795,539 resulting in an economic gain of $655,532. The City issued $19.635 million in General Obligation Bonds, dated August 15, 2010, with a true interest cost of 3.109397%. The proceeds from the sale of the bonds will be used to pay for (1) costs of construction and acquisition of and improvements to City streets, (2) parks and parks facilities improvements, (3) construction of improvements to the City’s fire stations and (4) pay the costs incurred in connection with the issuance of the Bonds. The City issued $3.9 million in Certificates of Obligation, dated August 15, 2010, with a true interest cost of 3.041158%. The proceeds from the sale of the Certificates will be used to pay for (1) the acquisition of buildings for municipal purposes, including a site for an arts building, (2) construction of improvements to the City’s combined electric, waterworks and wastewater systems and (3) to pay costs incurred in connection with the issuance of the Certificates. Revenue Bonds Utility system revenue bonds are secured by the net revenues of the Electric, Water, and Wastewater Funds as defined in the respective bond indentures. The City pledges income derived from the acquired or constructed assets to pay the debt service. In addition, the City is required to maintain debt service funds and bond reserve funds for all outstanding revenue bonds. Amounts in the reserve fund are to be used to pay principal and interest on outstanding bonds at any time sufficient funds are not available in the bond interest and redemption fund. The bond indentures require that the City accumulate reserves of an amount equal to the average annual principal and interest requirements of all outstanding bonds secured by the net revenues of the system. Arbitrage Compliance Arbitrage provisions of the Internal Revenue Tax Act of 1986 require the City to rebate to the federal government excess arbitrage earnings from bond proceeds. As of September 30, 2010, the City did not have an arbitrage rebate liability. 57 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2010 City of College Station, Texas Defeasance In prior years, the City issued refunding bonds to defease certain outstanding bonds for the purpose of consolidation and to achieve debt service savings. The City has placed the proceeds from the refunding issues in irrevocable escrow accounts with a trust agent to ensure payment of debt service on the refunded bonds. Accordingly, the trust account assets and liabilities for the defeased bonds are not included in the City’s financial statements. Although defeased, the refunded debt from these earlier issues will not be actually retired until the call dates have come due or until maturity if they are not callable issues. On September 30, 2010, all defeased bonds had been called or had matured. 58 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2010 City of College Station, Texas H. Components of Fund Balances Fund balances for governmental funds at September 30, 2010 are as follows: General Debt Service Street Projects Other Total Fund Balances: Nonspendable: Assets Held for Resale -$ -$ -$ 7,632,550$ 7,632,550$ Inventories 53,341 - - - 53,341 Long Term Loans Receivable - - - 603,092 603,092 Prepaids 17,175 - - - 17,175 Restricted for: American Recovery and Reinvestment Act (ARRA)- - - 1,229 1,229 Community and Neighborhood Parks - - - 1,669,186 1,669,186 Community Development - - - 1,601,469 1,601,469 Convention Center Design 600,000 - - - 600,000 Court Security Fee - - - 156,611 156,611 Court Technology Fee - - - 332,433 332,433 Debt Service - 4,119,966 - - 4,119,966 Doak Family (Library) Endowment 1,537 - - - 1,537 Drainage - - - 1,690,607 1,690,607 Educational and Governmental Access fee 174,437 - - - 174,437 General Government Capital Projects 73,648 - 21,886,547 14,166,312 36,126,507 Hotel Occupancy Tax - - - 3,241,579 3,241,579 Juvenile Case Manager - - - 290,800 290,800 Parks and Recreation Capital Projects - - - 1,796,539 1,796,539 Police Seizure - - - 62,100 62,100 Red Light Camera - - - 149,764 149,764 Wolf Pen Creek TIF - - - 3,256,768 3,256,768 Committed to: College Station Cemetery Perpetual Care - - - 1,683,022 1,683,022 Convention Center Project 141,641 - - - 141,641 Encumbrances 1,652,775 - - - 1,652,775 Memorial Cemetery - - - 788,017 788,017 Memorial Cemetery Perpetual Care - - - 293,188 293,188 Unassigned:11,101,327 - - - 11,101,327 13,815,881$ 4,119,966$ 21,886,547$ 39,415,266$ 79,237,660$ 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. 59 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2010 City of College Station, Texas 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, 2010. 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 generally can be subdivided into four loss categories: 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 employee contributions and from City operating funds. 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’s stop-loss insurance policy limits its liability to $100,000 per individual per year with an aggregate, annual liability of $5,600,000. The liability for outstanding losses includes $898,854 for claims incurred but not reported as of September 30, 2010. In fiscal year 2010, City real and personal property and mobile equipment was insured by Affiliated FM, A.M. Best rated A+, financial category XV. Affiliated FM premiums were funded by calculated contributions from the City's operating funds. Affiliated FM provided claims handling for these coverage lines. The City carried a property insurance policy deductible between $100,000 and $250,000 per occurrence, depending on type of loss. Property insurance covered all direct losses and some indirect losses. The City is self-insured on all liability coverage lines. The City carried excess liability coverage through Star National Insurance Company, A.M. Best rated A-, financial category IX. The self- insured retention ("SIR") is $250,000 per claim. Licensed adjusters in the City’s Risk Management office handle liability claims. The City also is self-insured for workers' compensation coverage. The City carried excess workers' compensation coverage through Star National Insurance Company with a $250,000 per claim SIR. Abercrombie, Simmons & Gillette, (AS&G), a Third Party Administrator (TPA) handles workers' compensation claims. In the event of a simultaneous liability and workers' compensation claim, only one SIR applies. 60 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2010 City of College Station, Texas Liabilities in the property and casualty fund and the workers’ compensation fund are reported when it is probable a loss has occurred and the loss amount can be reasonably estimated. Liabilities include an amount for claims incurred but not reported. Based on the most recent actuarial study, the City has recorded a potential liability of $391,004 in the property and casualty fund and a potential liability of $340,765 in the workers’ compensation fund. The results of the process to estimate the claims liability is not exact, as it depends on many complex factors, such as inflation, changes in legal doctrines, and damage awards. Accordingly, claims are reevaluated periodically to accommodate the effects of inflation, recent claim settlement trends (including frequency and amount of pay-outs), and other economic and social factors. The City uses its Unemployment Fund to pay for self-insurance activity involving claims filed under the Texas Unemployment Compensation Act. Monthly contributions to fund this activity are based on a percentage of payroll determined annually during the budget process. Settlements have not exceeded self-insured retention in each of the past three fiscal years. The liabilities for insurance claims reported in each of the funds are based on Governmental Accounting Standards Board Statement No. 10, which requires a liability for claims to be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and if the amount of the loss can be reasonably estimated. These liabilities include an estimate for incurred but not reported claims. Changes in the balances of claims liabilities for the self- insurance funds that are accounted for as Internal Service Funds for fiscal years 2010 and 2009 are as follows: 2010 2009 Unpaid Claims, October 1 1,549,912$ 1,405,955$ Incurred Claims (including IBNR's) 7,139,389 6,391,276 Claims Paid (7,058,678) (6,247,319) Unpaid Claims, September 30 1,630,623$ 1,549,912$ 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. The City's share of BVSWMA's change in net assets for fiscal year 2010 was $345,065. The City’s share of BVSWMA’s net assets for fiscal year 2010 was $12,896,874. 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 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. 61 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2010 City of College Station, Texas 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. In January 2010, the City of Bryan and the City of College Station approved an interlocal agreement (ILA) creating a local government corporation (LGC), BVSWMA, Inc., which will own and manage BVSWMA. The ILA describes the process for the creation of the LGC and the development of agreements to a) create the corporation, b) transfer the assets of BVSWMA to the Corporation; c) reimburse debt associated with the assets of BVSWMA; d) finance, operate and manage BVSWMA. Both City Councils approved Articles of Incorporation in February 2010. In March 2010, the City Councils of Bryan and College Station approved Bylaws for BVSWMA, Inc., which establishes the power to issue debt and to acquire land. The powers of BVSWMA, Inc. are vested in a 7 member Board of Directors, with each city Council appointing 3 members and the 7th member to be selected by an approval process to be set forth in the Articles of Incorporation and deemed to have been appointed by the Cities. On September 13, 2010, Bryan City Council, College Station City Council and the BVSWMA, Inc. Board of Directors formalized the creation of BVSWMA, Inc. and the dissolution of BVSWMA, effective October 1, 2010, with the approval and execution of a(n):  Borrowed Employee Agreement between the City of College Station and the Brazos Valley Solid Waste Management Agency Inc.;  Asset Transfer and Debt Reimbursement Agreement between BVSWMA Inc., the City of College Station and the City of Bryan;  Agreement between the City of College Station, the City of Bryan and the Brazos Valley Solid Waste Management Agency Inc. regarding the Assignment and Assumption of Contracts and Payables;  Final Settlement Agreement and Release related to the final settlement and dismissal of the certain lawsuit referred to as City of Bryan, Texas v. City of College Station, Texas, Cause No. 08-001626-CV-272 in the 272nd District Court of Brazos County, Texas, ("the Lawsuit"); consider the Agreed Motion to Dismiss; and, consider the Agreed Order of Dismissal. Subsequent to the end of the fiscal year ended September 30, 2010, BVSWMA transferred all of its assets to BVSWMA, Inc. College Station expects to report BVSWMA, Inc. as a joint venture with the City of Bryan and to recognize 50% ownership in BVSWMA, Inc. in the City’s financial statements. State and federal laws and regulations require BVSWMA to place a final cover on its Rock Prairie landfill site when it stops accepting waste and to perform certain maintenance and monitoring functions at the site for thirty years after closure. Although closure and postclosure care costs will be paid only near or after the date that the landfill stops accepting waste, BVSWMA reports a portion of these closure and postclosure care costs as an operating expense in each period based on landfill capacity used as of each balance sheet date. The $4.9 million reported as accrued postclosure maintenance costs at September 30, 2010, represents the cumulative amount reported to date based on the use of 94 percent of the estimated capacity of the landfill. BVSWMA will recognize the remaining estimated cost of closure and postclosure care of $306,000 as the remaining estimated capacity is filled. These amounts are based on what it would cost to perform all closure and postclosure care in 2010. 62 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2010 City of College Station, Texas BVSWMA expects to close the landfill in the year 2011. Actual cost may be higher due to inflation, changes in technology, or changes in regulations. The following is a summary of information from the audited financial statements of BVSWMA as of September 30, 2010: 2010 2009 Assets: Current Assets 13,156,184$ 6,958,161$ Capital Assets (Net of $6,342,859 Accumulated Depreciation at 2010 and $5,555,112 at 2009)27,246,688 21,325,194 Deferred Landfill Permits (Net of $989,206 Accumulated Amortization at 2010 and $905,788 at 2009)3,096,057 2,993,669 43,498,929 31,277,024 Liabilities: Current Liabilities 2,839,436 1,807,297 Noncurrent Liabilities: Accrued Post Closure Maintenance Costs 14,865,745 4,366,110 Total Liabilities 17,705,181 6,173,407 Net Assets Invested In Capital Assets 17,131,688 21,325,194 Unrestricted 8,662,060 3,778,423 Total Net Assets 25,793,748$ 25,103,617$ Program Revenues 6,808,016$ 6,574,937$ Expenses 6,061,415 4,704,837 746,601 1,870,100 General Revenues (56,470) 241,144 Change in Net Assets 690,131$ 2,111,244$ A copy of BVSWMA's separate audited financial statements may be obtained from the City's Fiscal Services Department. D. Pension Plan Plan Description The City provides pension benefits for all of its full-time employees through a nontraditional, joint contributory, hybrid defined benefit plan in the state-wide Texas Municipal Retirement System ("TMRS"), an agent multiple-employer public employee retirement system. The plan provisions that have been adopted by the City are within the options available in the governing state statutes of TMRS. TMRS issues a publicly available comprehensive annual financial report that includes financial statements and required supplementary information (RSI) for TMRS; the report also provides detailed explanations of the contributions, benefits and actuarial methods and assumptions 63 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2010 City of College Station, Texas used by the System. The report may be obtained by writing to TMRS, Post Office Box 149153, Austin, Texas 78714-9153 or by calling 800-924-8677; in addition, the report is available on TMRS’ website at www.TMRS.com. The plan provisions are adopted by the governing body of the City, within the options available in the state statutes governing TMRS. Plan provisions for the City were as follows: Plan Year 2008 Plan Year 2009 Plan Year 2010 Employee deposit rate 7.00% 7.00% 7.00% Matching ratio (City to Employee) 2 to 1 2 to 1 2 to 1 Years required for vesting 5 5 5 Service retirement eligibility 20 years at any age, 5 years at age 60 and above 20 years at any age, 5 years at age 60 and above 20 years at any age, 5 years at age 60 and above Updated Service Credit 100% Repeating, Transfers 100% Repeating, Transfers 100% Repeating, Transfers Annuity Increase (to retirees) 70% of CPI Repeating 70% of CPI Repeating 70% of CPI Repeating Contributions Under the state law governing TMRS, the contribution rate for each city is determined annually by the actuary, using the Projected Unit Credit actuarial cost method. This rate consists of the normal cost contribution rate and the prior service cost contribution rate, which is calculated to be a level percent of payroll from year to year. The normal cost contribution rate finances the portion of an active member’s projected benefit allocated annually; the prior service contribution rate amortizes the unfunded actuarial liability over the applicable period for that City. Both the normal cost and the prior service contribution rates include recognition of the projected impact of annually repeated benefits, such as Updated Service Credits and Annuity Increases. The City contributed to the TMRS Plan at an actuarially determined rate. Both the employees and the City made contributions monthly. Since the City needs to know its contribution rate in advance for budgetary purposes, there is a one-year delay between the actuarial valuation that serves as the basis for the rate and the calendar year when the rate goes into effect. The annual pension cost and net pension obligation are as follows: 2008 2009 2010  Annual Required Contribution (ARC) $ 4,750,851 $ 6,645,900 $ 7,582,944 Interest on Net Pension Obligation - - 98,251 Adjustment to the ARC - - (80,230) Annual Pension Cost 4,750,851 6,645,900 7,600,965 Contributions Made (4,750,851) (5,313,678) (5,810,310) Increase (decrease) in net pension obligation - 1,332,222 1,790,655 Net Pension Obligation, beginning of year - - 1,332,222 Net Pension Obligation, end of year $ - $ 1,332,222 $ 3,122,877 64 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2010 City of College Station, Texas Accounting Year Ending Annual Pension Cost (APC) Actual Contribution Made Percentage of APC Contributed Net Pension Obligation 9/30/2008 4,750,851$ 4,750,851$ 100.00%-$ 9/30/2009 6,645,900 5,313,678 79.95% 1,332,222 9/30/2010 7,600,965 5,810,310 76.44% 3,122,877 Three-Year Trend Information As discussed in Note V.C., the Cities of College Station and Bryan jointly own and operate the Brazos Valley Solid Waste Management Agency (BVSWMA). BVSWMA contracts with College Station to serve as landfill operator and bears the cost of those College Station employees working full time performing BVSWMA duties. BVSWMA reports the liabilities associated with this employment contractual relationship, therefore, BVSWMA reports $75,645 of the above Net Pension Obligation on its September 30, 2010 financial statements. The amount reported on the City of College Station’s September 30, 2010 financial statements is $3,047,232. The required contribution rates for fiscal year 2010 were determined as part of the December 31, 2007 and 2008 actuarial valuations. Additional information as of the latest actuarial valuation, December 31, 2009, also follows: 12/31/2007 12/31/2008 12/31/2009 Actuarial Cost Method:Projected Unit Credit Projected Unit Credit Projected Unit Credit Amortization Method:Level Percent of Payroll Level Percent of Payroll Level Percent of Payroll Remaining Amortization Period:30 Years--Closed Period 29 Years--Closed Period 28 Years--Closed Period Amortization Period for new Gains/Losses 30 Years 30 Years 30 Years Asset Valuation Method:Amortized Cost Amortized Cost Amortized Cost Actuarial Assumptions: Investment Rate of Return*7.0%7.5%7.5% Projected Salary Increases*Varies by age and service Varies by age and service Varies by age and service *Includes Inflation at:3.00%3.00%3.00% Cost-of-Living Adjustments:2.1%2.1%2.1% The funded status as of December 31, 2009, the most recent actuarial valuation date, is as follows: 65 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2010 City of College Station, Texas Actuarial Valuation Date Actuarial Value of Assets Actuarial Accrued Liability (AAL) Funded Ratio Unfunded Actuarial Accrued Liability (UAAL) Annual Covered Payroll (Calendar Year) UAAL as a Percentage of Covered Payroll 12/31/2007 $ 87,193,697 $ 130,310,054 66.9% $ 43,116,357 $ 36,703,161 117.5% 12/31/2008 90,243,677 138,576,504 65.1% 48,332,827 40,337,456 119.8% 12/31/2009 97,331,034 148,904,236 65.4% 51,573,202 41,515,345 124.2% The schedule of funding progress, presented as Required Supplementary Information following the notes to the financial statements, presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability of benefits. E. Other Post Employment Benefits Program description: In addition to the pension benefits described in Note V.D., as required by state laws and defined by City Policy, the City makes available postretirement medical, dental, vision, drug and life insurance benefits to all employees who meet TMRS retirement qualifications, retire from the City and who enroll themselves and their eligible dependent(s) on or before the effective date of their retirement through the City’s single-employer defined benefit other post-employment benefit (OPEB) plan. The life insurance plan provides a $10,000 fully insured death benefit coverage upon retirement which ceases upon attainment of age 65 for retirees. So long as monthly premium payments are made, the healthcare plan provides lifetime insurance to eligible retirees, their spouses and dependents through the City’s group health insurance plan, which covers both active and retired members. Benefit provisions as well as retiree premium contributions are established by management. The City determines the employer and participant contribution rates annually based on recommendations of City staff and the City’s consultant. During the fiscal year ended September 30, 2009, the City subsidized the retiree medical, dental, vision and drug premium so that the retiree premium is less than the full amount of premium for a full time employee. On September 30, 2009, the monthly retiree premium payment became the actual non-blended retiree rate, effective as of January 1, 2010 for new retirees and effective January 1, 2011 for existing retirees. The change in the monthly premium closed the plan and eliminated the OPEB liability for postretirement medical, dental, vision and drug insurance benefits. On or around September 30, 2010, OPEB was reinstated when policy changed to charge retirees the employee (subsidized) rate for medical, dental, vision and drug coverage. Given that the change made on September 30, 2009 eliminating postretirement medical, dental, vision and drug liability to the City was reversed on September 30, 2010, the City treats its OPEB obligation as if the changes never happened and the City’s OPEB obligation carried forward from October 1, 2008 without changes. All medical, dental, vision and drug care benefits are provided through the City’s self-insured health plan. The benefit levels are the same as those afforded to active employees. Life insurance for eligible retirees is paid entirely by the City. 66 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2010 City of College Station, Texas During fiscal year 2010, twenty-nine former employees were covered under this arrangement, with claims totaling $547,801. 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 2010, one retiree was covered under this plan; however, claims filed by this retiree were not material. Annual OPEB Cost and Net OPEB Obligation The City’s annual OPEB cost is based on the annual required contribution (ARC) of the City, an amount actuarially determined in accordance with the parameters of GASB Statement 45. Despite the apparent implications of the term ARC, the City is not required to contribute the ARC to the plan each year, Instead, the ARC provides a basis for evaluating whether the City’s contributions for OPEB are adequate to fund the benefits during the working lifetime of current employees (i.e., the normal cost) and to amortize existing unfunded obligations (i.e., the obligations for current retirees plus that portion of the current employees’ obligations that are attributed to past service) in a systematic manner over the amortization period prescribed by GASB. The annual OPEB cost is the annual accounting expense recorded on the City’s Statement of Revenues, Expenses and Changes in Net Assets and on the City’s Statement of Activities. The annual OPEB cost is equal to (1) the ARC for the current fiscal year, plus (2) interest on the Net OPEB Obligation at the beginning of the year, reduced by (3) an adjustment to the ARC which is equal to an amortization of the beginning of the year Net OPEB Obligation. As discussed in Note V.C., the Cities of College Station and Bryan jointly own and operate the Brazos Valley Solid Waste Management Agency (BVSWMA). BVSWMA contracts with College Station to serve as landfill operator and bears the cost of those College Station employees 2008 2009 2010 Annual Required Contribution (ARC) N/A $ 2,241,140 $ 2,438,554 Interest on Net OPEB Obligation N/A - 131,799 Adjustment to the ARC N/A - (150,551) Annual OPEB Cost N/A 2,241,140 2,419,802 Contributions Made N/A (44,493) (381,459) Increase in net OPEB obligation N/A 2,196,647 2,038,343 Net OPEB Obligation, beginning of year N/A - 2,196,647 Net OPEB Obligation, end of year N/A $ 2,196,647 $ 4,234,990 Accounting Year Ending Annual OPEB Cost Actual Contribution Made Percentage of Annual OPEB Cost Contributed Net OPEB Obligation 9/30/2008 N/A N/A N/A -$ 9/30/2009 2,241,140 44,493 1.99% 2,196,647 9/30/2010 2,419,802 381,459 15.76% 4,234,990 Three-Year Trend Information 67 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2010 City of College Station, Texas working full time performing BVSWMA duties. Because BVSWMA reports the liabilities associated with this employment contractual relationship, BVSWMA reports $102,583 of the above Net OPEB Obligation on its financial statements, leaving $4,132,407 reported in the City of College Station’s financial statements. Generally, the Net OPEB Obligation is the cumulative difference since the effective date of GASB 45 between the annual OPEB cost and the employer’s contributions to the plan including the OPEB liability/(asset) at transition, if any. Because the City did not have an OPEB liability/(asset) at transition, the Net OPEB Obligation as of October 1, 2008 is zero. Whenever the City contributes an amount less than the annual OPEB cost, this shortfall will increase the City’s Net OPEB Obligation. Actuarial Methods and Assumptions Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of events far into the future. Actuarially determined amounts are subject to continual revision as actual results are compared to past expectations and new estimates are made about the future. The required schedule of funding progress immediately following the notes to the financial statements presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits. GASB No. 45 calculations are based on the types of benefits provided under the terms of the substantive plan at the time of each valuation and on the pattern of sharing of costs between the employer and plan participants to that point. In addition, the projection of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations on the pattern of cost sharing between the employer and plan participants in the future. Actuarial calculations reflect a long-term perspective. In addition, consistent with that perspective, actuarial methods and assumptions used in developing the amounts in this report include techniques that are designed to reduce short-term volatility in actuarial accrued liabilities. The required contribution rates were determined as part of the October 1, 2008 actuarial valuation. Significant methods and assumptions follow: Actuarial valuation date 10/1/2008 Actuarial Cost Method:Projected Unit Credit Amortization Method:Level dollar Remaining Amortization Period: 30 year open period Amortization Period for new Gains/Losses 30 Years Asset Valuation Method:Market Actuarial Assumptions: Investment Rate of Return*6.0% *Includes Inflation at:4.00% Projected Salary Increases N/A Annual Healthcare Trend Rates:9.00% in FYE 2009 declining to 6.00% in FYE 2015 68 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2010 City of College Station, Texas Funding Status and Funding Progress The Schedule of Funding Progress presents information as of the current valuation date and the two preceding valuation dates. As of the date of this financial statement, the City has had two valuations, that for the fiscal year ending September 30, 2006, which was used for planning purposes and one for the fiscal year beginning October 1, 2008. At September 30, 2010, the City’s actuarial accrued liability for OPEB benefits was $15,244,888, all of which was unfunded. F. Deferred Compensation Plan The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code ("IRC") 457. The plan, as amended, is available to all employees and permits them to defer a portion of their salary until future years. The plan funds are not available to employees until termination, retirement, death, or emergency. All amounts of compensation deferred under the plan (until paid or made available to the employee or other beneficiary) were placed in trust for the exclusive benefit of the participants and the beneficiaries. This action is in accordance with changes made to IRC Section 457. Since the City is no longer the Plan Administrator or the trustee, the assets of the plan are no longer a reportable fund in the City's basic financial statements. G. Commitments and Contingencies Construction Commitments The City has contractual commitments of $3,380,605 in the Capital Projects Funds, $1,394,857 in the Water Fund, $1,527,162 in the Wastewater Fund and $546,858 in the Electric Fund. These commitments are for construction of various projects and will be funded primarily from long term debt. Contingencies The City participates in a number of federal and state assisted grant programs. These programs are subject to program compliance audits by the grantors or their representatives. Any liability for reimbursement which may arise as the result of these audits is not believed to be material. Litigation The City is a party to legal proceedings, many of which occur in the normal course of operations. It is not possible at the present time to estimate the ultimate outcome or liability, if any, of the city with respect to the various proceedings. Except for the matter disclosed below, 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. Actuarial Valuation Date Actuarial Value of Assets Actuarial Accrued Liability (AAL) Funded Ratio Unfunded Actuarial Accrued Liability (UAAL) Annual Covered Payroll (Fiscal Year) UAAL as a Percentage of Covered Payroll 10/1/2008 $ - $ 15,244,888 0.0% $ 15,244,888 $41,019,952 37.2% 69 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2010 City of College Station, Texas In November 2008, Weingarten Realty Investors and Weingarten/Investments, Inc. (“WRI”) filed a lawsuit against the City of College Station, Ron Silvia, David Ruesink, Lynn McIlhaney and Ben White in the U.S. District Court Southern Division of Texas related to the request to rezone undeveloped property located at the east corner of Rock Prairie Road and State Highway 6 in College Station, Texas. WRI amended its complaint in August 2009 to add Dennis Maloney and Hugh Stearns to the lawsuit. The parties to the lawsuit have asserted their respective claims and the litigation is currently pending. On March 24, 2011, College Station City Council approved a $1,600,000 settlement agreement between the City of College Station, Ron Silvia, David Ruesink, Lynn McIlhaney, Ben White, Hugh Stearns and Dennis Maloney and Weingarten Realty Investors and Weingarten/Investments, Inc. to resolve the lawsuit Weingarten Realty Investors, et. al. v. The City of College Station, Texas, et. al. Authoritative accounting guidance provides that a claim is accrued as of the balance sheet date when information is available prior to issuance of the financial statements that indicates it is probable that a liability has been incurred at the date of the most recent accounting period for which financial statements are being presented, and the amount of the loss can be reasonably estimated. The City accrued the $1,600,000 claim settlement in its September 30, 2010 financial statements. H. Bonds Available for Sale Authorized general obligation bonds available for future issue are as follows: Year Unissued Authorized Amount Public Buildings 1984 700,000$ Street Improvements 1984 500,000 Street Improvements 2003 440,000 Municipal Complex Improvements 2003 3,655,000 Library Expansion 2008 8,385,000 Parks and Recreation 2008 10,385,000 Street Improvements 2008 33,945,000 Traffic Management 2008 3,000,000 Total 61,010,000$ I. 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. 70 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2010 City of College Station, Texas J. Subsequent Events OPEB On September 30, 2009, the City of College Station authorized a change in its retiree health insurance coverage. The change is phased in over the next year and a half. Effective January 1, 2010, new retirees choosing to stay on the City’s health plan may do so by paying the non- blended retiree-rate for health benefits. The existing retirees on the City’s health plan will be able to stay on the health plan and pay the subsidized employee group rate through December 31, 2010. This change eliminates the City’s Other Post Employment Benefit Cost for Health and Dental Benefits. The City determines the employer and participant contribution rates annually based on recommendations of City staff and the City’s consultant. During the fiscal year ended September 30, 2009, the City subsidized the retiree medical, dental, vision and drug premium so that the retiree premium is less than the full amount of premium for a full time employee. On September 30, 2009, the monthly retiree premium payment became the actual non-blended retiree rate, effective as of January 1, 2010 for new retirees and effective January 1, 2011 for existing retirees. The change in the monthly premium closed the plan and eliminated the OPEB liability for postretirement medical, dental, vision and drug insurance benefits. On or around September 30, 2010, OPEB was reinstated when policy changed to charge retirees the employee (subsidized) rate for medical, dental, vision and drug coverage. Benefit provisions as well as retiree premium contributions are established by management. The City determines the employer and participant contribution rates annually based on recommendations of City staff and the City’s consultant. During the fiscal year ended September 30, 2009, the City subsidized the retiree medical, dental, vision and drug premium so that the retiree premium is less than the full amount of premium for a full time employee. On September 30, 2009, the monthly retiree premium payment became the actual non-blended retiree rate, effective as of January 1, 2010 for new retirees and effective January 1, 2011 for existing retirees. The change in the monthly premium closed the plan and eliminated the OPEB liability for postretirement medical, dental, vision and drug insurance benefits. On or around September 30, 2010, OPEB was reinstated when policy changed to charge retirees the employee (subsidized) rate for medical, dental, vision and drug coverage. Given that the change made on September 30, 2009 eliminating postretirement medical, dental, vision and drug liability to the City was reversed on September 30, 2010, the City treats its OPEB obligation as if the changes never happened and the City’s OPEB obligation carried forward from October 1, 2008 without changes. With each of these significant changes, a new valuation was requested. However, as of the financial statement date, no new valuation has been completed because complete data was not provided to the actuary. BVSWMA, Inc. On September 13, 2010, Bryan City Council, College Station City Council and the BVSWMA, Inc. Board of Directors formalized the creation of BVSWMA, Inc. and the dissolution of BVSWMA, effective October 1, 2010, with the approval and execution of a(n): 71 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2010 City of College Station, Texas  Borrowed Employee Agreement between the City of College Station and the Brazos Valley Solid Waste Management Agency Inc.;  Asset Transfer and Debt Reimbursement Agreement between BVSWMA Inc., the City of College Station and the City of Bryan;  Agreement between the City of College Station, the City of Bryan and the Brazos Valley Solid Waste Management Agency Inc. regarding the Assignment and Assumption of Contracts and Payables;  Final Settlement Agreement and Release related to the final settlement and dismissal of the City of Bryan, Texas v. City of College Station, Texas lawsuit. Subsequent to the end of the fiscal year ended September 30, 2010, BVSWMA transferred all of its assets to BVSWMA, Inc. BVSWMA, Inc. is a joint venture between the City of College Station and the City of Bryan. General Obligation Refunding Bonds Issued On November 15, 2010, the City issued $37.15 million General Obligation Refunding Bonds, Series 2010. The advanced refunding of General Obligation Improvement Bonds, Series 2001, 2002, Certificates of Obligation Series 2001, 2002 and Utility System Revenue Bonds, Series 2000, 2001 and 2002 was undertaken to reduce total general obligation debt service payments over the next 10 years by $1,380,833 and total revenue debt service payments over the next 10 years by $3,166,740, resulting in an economic gain of $4,547,573. Weingarten Claim Settlement On March 24, 2011, College Station City Council approved a $1,600,000 settlement agreement between the City of College Station, Ron Silvia, David Ruesink, Lynn McIlhaney, Ben White, Hugh Stearns and Dennis Maloney and Weingarten Realty Investors and Weingarten/Investments, Inc. to resolve the lawsuit Weingarten Realty Investors, et. al. v. The City of College Station, Texas, et. al. Authoritative accounting guidance provides that a loss contingency arising from a claim is accrued as of the balance sheet date when information is available prior to issuance of the financial statements that indicates it is probable that an asset has been impaired or a liability has been incurred at the date of the most recent accounting period for which financial statements are being presented, and the amount of the loss can be reasonably estimated. The City accrued the $1,600,000 settlement in its September 30, 2010 financial statements. 72 CITY OF COLLEGE STATION, TEXAS Required Supplementary Information Texas Municipal Retirement System Schedule of Funding Progress Last Ten Fiscal Years (unaudited) UAAL as a Actuarial Actuarial Covered Percentage Actuarial Value of Accrued Unfunded Funded Payroll of Covered Valuation Assets ** Liability (AAL) AAL (UAAL) Ratio (Calendar Year) Payroll Date* (a) (b) (b-a) (a/b) (c) [(b-a)/c] 12/31/2000 47,880,750 55,811,761 7,931,011 85.8% 23,651,256 33.5% 12/31/2001 52,927,528 61,856,550 8,929,022 85.6% 25,422,558 35.1% 12/31/2002 57,742,291 68,424,249 10,681,958 84.4% 27,784,120 38.4% 12/31/2003 63,223,606 80,476,343 17,252,737 78.6% 28,537,016 60.5% 12/31/2004 70,336,601 87,906,815 17,570,214 80.0% 30,978,906 56.7% 12/31/2005 75,655,678 94,605,300 18,949,622 80.0% 31,987,028 59.2% 12/31/2006 80,758,249 102,166,047 21,407,798 79.0% 34,143,239 62.7% 12/31/2007 87,193,697 130,310,054 43,116,357 66.9% 36,703,161 117.5% 12/31/2008 90,243,677 138,576,504 48,332,827 65.1% 40,337,456 119.8% 12/31/2009 97,331,034 148,904,236 51,573,202 65.4% 41,515,345 124.2% *Assets are stated as of December 31 of the preceding year, the date of the actuarial valuation. ** Information is from appropriate year supplements to TMRS annual reports. Through the fiscal year ended September 30, 2010. BVSWMA contracted with the City of College Station to serve as landfill operator and carried the cost of those College Station employees working full time performing BVSWMA duties. BVSWMA reports the liabilities associated with this employment contractual relationship, therefore, BVSWMA reports $75,645 of the City's Net Pension Obligation on its September 30, 2010 financial statements. The Net Pension Obligation amount reported on the City of College Station's September 30, 2010 financial statements is $3,047,232. The Actuarial Accrued Liability (AAL), the Unfunded AAL (UAAL) and the covered calendar year payroll figures reported above represent the entire City of College Station workforce, including the section of the workforce dedicated exclusively to BVSWMA. 73 CITY OF COLLEGE STATION, TEXAS Required Supplementary Information City of College Station Employees Other Post Employment Benefits Plan Schedule of Funding Progress Last Two Fiscal Years (unaudited) UAAL as a Actuarial Actuarial Covered Percentage Fiscal Value of Accrued Unfunded Funded Payroll of Covered Year Assets Liability (AAL) AAL (UAAL) Ratio (Fiscal Year) Payroll 2009 - 15,244,888 15,244,888 0.0% 41,019,952 37.2% 2010 - 15,244,888 15,244,888 0.0% 41,212,543 37.0% Through fiscal year 2010, BVSWMA contracted with College Station to serve as landfill operator. BVSWMA bears the cost of those College Station employees working full time performing BVSWMA duties. Because BVSWMA reports the expenses and liabilities associated with this employment contractual relationship, BVSWMA reports $102,583 of the City of College Station's Net OPEB Obligation on its financial statements, leaving $4,132,407 of Net OPEB Obligation reported in the City of College Station's financial statements. The Actuarial Accrued Liability (AAL), the Unfunded AAL (UAAL) and the covered fiscal payroll figures reported above represent the entire City of College Station workforce, including the section of the workforce dedicated exclusively to BVSWMA. Fiscal Years 2009 and 2010 are of the October 1, 2008 actuarial valuation. Since Fiscal Year 2009 was the intial year of application of GASB 45, no preceeding year information is shown. 74 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Adjustment for Intra- General Fund transfers Actual Budget Basis Variance with Final Budget Over (Under) Ad Valorem Tax 11,261,094$ 11,261,094$ 11,172,907$ -$ -$ 11,172,907$ (88,187)$ Sales Tax 19,624,512 19,624,512 19,328,578 -- 19,328,578 (295,934) Mixed Drink and Franchise 2,676,000 2,676,000 2,633,328 -- 2,633,328 (42,672) Licenses and Permits 1,017,900 1,017,900 964,344 --964,344 (53,556) Intergovernmental 216,505 238,941 795,750 --795,750 556,809 Parks and Recreation Charges for Services 1,194,259 1,194,259 1,261,253 -- 1,261,253 66,994 Other Charges for Services 2,023,316 2,023,316 2,781,947 -- 2,781,947 758,631 Fines, Forfeits, and Penalties 3,558,738 3,558,738 3,817,193 -- 3,817,193 258,455 Investment Income 335,046 335,046 69,379 --69,379 (265,667) Rents and Royalties 634,492 634,492 749,635 --749,635 115,143 Contributions 18,300 18,300 15,366 --15,366 (2,934) Other 118,500 118,500 139,644 --139,644 21,144 Total Revenues 42,678,662 42,701,098 43,729,324 -- 43,729,324 1,028,226 Expenditures Current General Government 5,173,026 5,288,398 4,098,364 -- 4,098,364 (1,190,034) Fiscal Services 3,206,341 3,102,433 3,086,275 -- 3,086,275 (16,158) Police 14,215,466 13,825,757 13,724,355 -- 13,724,355 (101,402) Fire 11,462,357 11,683,732 11,414,188 (29,248)- 11,443,436 (240,296) Planning and Development Services 2,698,317 2,621,123 2,456,322 (83,102)- 2,539,424 (81,699) Public Works 7,462,930 7,148,907 6,094,737 (900,486)- 6,995,223 (153,684) Capital Improvement Projects 892,932 884,527 129,005 (774,966)-903,971 19,444 Parks and Recreation 9,166,363 8,961,384 8,299,138 (503,025)- 8,802,163 (159,221) Information Technology 4,117,715 3,988,737 3,886,102 -- 3,886,102 (102,635) Library 1,080,589 1,077,922 1,080,030 -- 1,080,030 2,108 Claims -- 1,600,000 1,600,000 --- Contributions 778,883 778,883 779,883 --779,883 1,000 Other 375,500 425,500 327,210 --327,210 (98,290) General Fund Landfill Legal Costs 200,000 200,000 4,452 --4,452 (195,548) Capital Outlay 276,385 276,385 ---- (276,385) Pay Plan Contingency 273,372 372 ----(372) Total Expenditures 61,380,176 60,264,060 56,980,061 (690,827)- 57,670,888 (2,593,172) Deficiency of Revenues Under Expenditures (18,701,514) (17,562,962) (13,250,737) 690,827 - (13,941,564) 3,621,398 Other Financing Sources (Uses) Sales of Capital Assets --5,615 --5,615 5,615 Reimbursed Administration Transfers 6,036,882 6,036,882 3,487,034 (1,949,868)- 5,436,902 (599,980) Transfers In 15,609,762 15,609,762 12,299,762 (13,800)(565,000) 12,878,562 (2,731,200) Transfer Out (788,615) (788,615)--565,000 (565,000) 223,615 Contingency (250,159) (237,659)----237,659 Total Other Financing Sources (Uses)20,607,870 20,620,370 15,792,411 (1,963,668)- 17,756,079 (2,864,291) Net Change in Fund Balances 1,906,356 3,057,408 2,541,674 (1,272,841)$ -$ 3,814,515 757,107$ Fund Balances, October 1 11,274,207 11,274,207 11,274,207 11,274,207 Fund Balances, September 30 13,180,563$ 14,331,615$ 13,815,881$ 15,088,722$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balances General Fund For the Fiscal Year Ended September 30, 2010 75 CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual General Fund For the Fiscal Year Ended September 30, 2010 Notes to Required Supplementary Information Note 1. The City prepares its annual budget on a basis (budget basis) which differs from a GAAP basis. The budget and all transactions are presented in accordance with the City’s method (budget basis) in the Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual - General Fund to provide a meaningful comparison of actual results with the budget. The differences between budget and GAAP basis in the General Fund are that reimbursements and charges for transfers of indirect costs are shown as Reimbursed Administration Transfers. Additionally, charges for salaries and direct departmental overhead for capital projects are charged for GAAP basis, but are estimated as indirect costs for budget basis. Subsequent to the end of the fiscal year, City Council agreed to settle a lawsuit for $1,600,000. Authoritative accounting guidance requires accrual of the claim for GAAP purposes. For budget purposes, however, the claim will be budgeted in the fiscal year the cash is affected. 76 COMBINING FINANCIAL STATEMENTS General Fund(s) The General Fund is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. All general tax revenues and other receipts that are not restricted by law or contractual agreement to some other fund are accounted for in this fund. General operating expenditures, fixed charges and capital improvement costs that are not paid through other funds are paid from the General Fund. The General Fund Type has historically incorporated several funds, which have been reported collectively as the General Fund in the City’s Comprehensive Annual Financial Report. During the fiscal year, the City re-organized its fund structure to classify certain funds previously classified as a Special Revenue Fund as a General Fund. These funds include the New Convention Center Fund and the Business Park Fund. The revenue stream for these funds is not restricted, committed nor assigned. For the fiscal year ending September 30, 2010, the General Fund includes: General Fund Economic Development Fund – accounts for funds used for business attraction and retention. Monies for this purpose are transferred to the Economic Development Fund from the General Fund, the Business Park Fund, and the Electric, Water, Wastewater and Sanitation Funds. Parks Xtra Education Fund – accounts for funds used for community-based education programs jointly offered by the City of College Station and the College Station Independent School District. Registration fees primarily fund this fund. Unclaimed Property Fund – accounts for checks issued but not cashed. After the abandonment period of 1 year for payroll checks over $100 and 3 years for accounts payable checks over $100, these funds are sent to the State Comptroller. Refundable Deposits Fund – activated to account for a refundable deposit. Efficiency Time Payment Fee Fund – accounts for unrestricted revenue collected by the Municipal Court pursuant to Texas Local Government Code, Section 133.103. New Convention Center Fund - to account for the receipt and expenditure of funds received by the City in the operation and maintenance of a property acquired for a future convention center. Revenues associated with this fund are derived from the lease of retail property at the Chimney Hill Center. Business Park Fund – originally used to account for the cost of street, water, and sewer improvements at the College Station Business Park, this fund transfers resources to the Economic Development Fund for business attraction and retention. 77 General Fund Economic Development Parks Xtra Education Unclaimed Property Refundable Deposits Efficiency Time Payment Assets Equity in Cash and Cash Equivalents 10,343,878$ 2,078,000$ 53,637$ 93,809$ 6,165$ 30,815$ Equity in Investments 768,087 154,248 3,981 6,963 -2,287 Receivables Accrued Interest 11,193 2,320 60 --34 Grants 27,126 ----- Letter of Credit 25,000 ----- Accounts 1,124,699 ----- Taxes 2,246,798 ----- Other 2,898 ----- Less Allowance for Uncollectible Accounts (51,683)----- Inventories 53,341 ----- Prepaid Costs 17,175 ----- Restricted Assets Equity in Cash and Cash Equivalents 144,708 ----- Equity in investments 10,742 ----- Total Assets 14,723,962$ 2,234,568$ 57,678$ 100,772$ 6,165$ 33,136$ Liabilities and Fund Balances Accounts Payable 987,366$ 150$ 3,621$ -$ -$ -$ Claims Payable 1,600,000 ----- Interfund Payables -480,000 ---- Refundable Deposits 60,689 ---6,165 - Accrued Liabilities 595,121 -- 100,772 -- Customer Construction Advances 58,566 ----- Other Deferred Revenues 1,370,932 ----- Total Liabilities 4,672,674 480,150 3,621 100,772 6,165 - Fund Balances Nonspendable 70,516 ----- Restricted 175,974 ----- Committed 339,083 1,313,692 ---- Unassigned 9,465,715 440,726 54,057 --33,136 Total Fund Balances 10,051,288 1,754,418 54,057 --33,136 Total Liabilities and Fund Balances 14,723,962$ 2,234,568$ 57,678$ 100,772$ 6,165$ 33,136$ CITY OF COLLEGE STATION, TEXAS Balance Sheet General Fund(s) September 30, 2010 78 Total General Fund as Previously Reported New Convention Center Business Park Funds Previously Reported as Special Revenue Funds Total General Fund 12,606,304$ 1,442,006$ 334,451$ 1,776,457$ 14,382,761$ 935,566 110,022 24,826 134,848 1,070,414 13,607 (1,254) 373 (881) 12,726 27,126 - - - 27,126 25,000 - - - 25,000 1,124,699 42,576 - 42,576 1,167,275 2,246,798 - - - 2,246,798 2,898 - - - 2,898 (51,683) (4,207) - (4,207) (55,890) 53,341 - - - 53,341 17,175 - - - 17,175 144,708 40,182 - 40,182 184,890 10,742 - - - 10,742 17,156,281$ 1,629,325$ 359,650$ 1,988,975$ 19,145,256$ 991,137$ 2,869$ -$ 2,869$ 994,006$ 1,600,000 - - - 1,600,000 480,000 ---480,000 66,854 40,182 -40,182 107,036 695,893 ---695,893 58,566 ---58,566 1,370,932 22,942 -22,942 1,393,874 5,263,382 65,993 -65,993 5,329,375 70,516 ---70,516 175,974 600,000 73,648 673,648 849,622 1,652,775 141,641 -141,641 1,794,416 9,993,634 821,691 286,002 1,107,693 11,101,327 11,892,899 1,563,332 359,650 1,922,982 13,815,881 17,156,281$ 1,629,325$ 359,650$ 1,988,975$ 19,145,256$ 79 General Economic Development Parks Xtra Education Unclaimed Property Refundable Deposits Efficiency Time Payment Revenues Taxes 33,134,813$ -$ -$ -$ -$ -$ Licenses and Permits 964,344 ----- Intergovernmental 795,750 ----- Charges for Services 3,925,023 - 118,177 --- Fines, Forfeits, and Penalties 3,809,051 ----8,142 Investment Income 52,585 7,837 58 --160 Rents and Royalties 312,474 ----- Contributions 15,366 ----- Other 89,644 50,000 ---- Total Revenues 43,099,050 57,837 118,235 --8,302 Expenditures Current General Government 4,051,122 47,242 ---- Fiscal Services 3,086,275 ----- Police 13,724,355 ----- Fire 11,414,188 ----- Planning and Development Services 2,456,322 ----- Public Works 6,099,189 ----- Capital Improvement Projects 126,955 ----- Parks and Recreation 8,229,358 -65,780 --- Information Services 3,886,102 ----- Library 1,080,030 ----- Contributions 783,883 ----- Claims 1,600,000 ----- Other 160,564 ----- Total Expenditures 56,698,343 47,242 65,780 --- Deficiency of Revenues Under Expenditures (13,599,293)10,595 52,455 --8,302 Other Financing Sources (Uses) Sales of Capital Assets 5,615 ----- Transfers In 15,767,142 610,000 ---- Transfer Out (315,000)-(15,661)--(9,685) Total Other Financing Sources (Uses)15,457,757 610,000 (15,661)--(9,685) Net Change in Fund Balances 1,858,464 620,595 36,794 --(1,383) Fund Balances, October 1 8,192,824 1,133,823 17,263 --34,519 Fund Balances, September 30 10,051,288$ 1,754,418$ 54,057$ -$ -$ 33,136$ CITY OF COLLEGE STATION, TEXAS Statement of Revenues, Expenditures, and Changes in Fund Balances General Fund(s) For the Fiscal Year Ended September 30, 2010 80 Total General Fund as Previously Reported New Convention Center Business Park Funds Previously Reported as Special Revenue Funds Total General Fund Adjust intra- General fund transfers Total General Fund 33,134,813$ -$ -$ -$ 33,134,813$ -$ 33,134,813$ 964,344 ---964,344 -964,344 795,750 ---795,750 -795,750 4,043,200 --- 4,043,200 - 4,043,200 3,817,193 --- 3,817,193 - 3,817,193 60,640 6,152 2,587 8,739 69,379 -69,379 312,474 437,161 -437,161 749,635 -749,635 15,366 ---15,366 -15,366 139,644 ---139,644 -139,644 43,283,424 443,313 2,587 445,900 43,729,324 - 43,729,324 4,098,364 --- 4,098,364 - 4,098,364 3,086,275 --- 3,086,275 - 3,086,275 13,724,355 --- 13,724,355 - 13,724,355 11,414,188 --- 11,414,188 - 11,414,188 2,456,322 --- 2,456,322 - 2,456,322 6,099,189 --- 6,099,189 - 6,099,189 126,955 -2,050 2,050 129,005 -129,005 8,295,138 --- 8,295,138 - 8,295,138 3,886,102 --- 3,886,102 - 3,886,102 1,080,030 --- 1,080,030 - 1,080,030 783,883 ---783,883 -783,883 1,600,000 --- 1,600,000 - 1,600,000 160,564 166,646 -166,646 327,210 -327,210 56,811,365 166,646 2,050 168,696 56,980,061 - 56,980,061 (13,527,941)276,667 537 277,204 (13,250,737)- (13,250,737) 5,615---5,615 -5,615 16,377,142 --- 16,377,142 (590,346) 15,786,796 (340,346)-(250,000) (250,000) (590,346) 590,346 - 16,042,411 -(250,000) (250,000) 15,792,411 - 15,792,411 2,514,470 276,667 (249,463)27,204 2,541,674 - 2,541,674 9,378,429 1,286,665 609,113 1,895,778 11,274,207 - 11,274,207 11,892,899$ 1,563,332$ 359,650$ 1,922,982$ 13,815,881$ -$ 13,815,881$ 81 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Ad Valorem Tax 11,261,094$ 11,261,094$ 11,172,907$ -$ 11,172,907$ (88,187)$ Sales Tax 19,624,512 19,624,512 19,328,578 - 19,328,578 (295,934) Mixed Drink and Franchise 2,676,000 2,676,000 2,633,328 - 2,633,328 (42,672) Licenses and Permits 1,017,900 1,017,900 964,344 - 964,344 (53,556) Intergovernmental 216,505 238,941 795,750 - 795,750 556,809 Parks and Recreation Charges for Services 1,099,500 1,099,500 1,143,076 - 1,143,076 43,576 Other Charges for Services 2,023,316 2,023,316 2,781,947 - 2,781,947 758,631 Fines, Forfeits, and Penalties 3,551,738 3,551,738 3,809,051 - 3,809,051 257,313 Investment Income 275,000 275,000 52,585 - 52,585 (222,415) Rents and Royalties 278,600 278,600 312,474 - 312,474 33,874 Contributions 18,300 18,300 15,366 - 15,366 (2,934) Other 68,500 68,500 89,644 -89,644 21,144 Total Revenues 42,110,965 42,133,401 43,099,050 - 43,099,050 965,649 Expenditures Current General Government 4,206,026 4,121,398 4,051,122 - 4,051,122 (70,276) Fiscal Services 3,206,341 3,102,433 3,086,275 - 3,086,275 (16,158) Police 14,215,466 13,825,757 13,724,355 - 13,724,355 (101,402) Fire 11,462,357 11,683,732 11,414,188 (29,248) 11,443,436 (240,296) Planning and Development Services 2,698,317 2,621,123 2,456,322 (83,102) 2,539,424 (81,699) Public Works 7,462,930 7,148,907 6,094,737 (900,486) 6,995,223 (153,684) Capital Improvement Projects 892,932 884,527 126,955 (774,966)901,921 17,394 Parks and Recreation 9,069,889 8,864,910 8,233,358 (503,025) 8,736,383 (128,527) Information Technology 4,117,715 3,988,737 3,886,102 - 3,886,102 (102,635) Library 1,080,589 1,077,922 1,080,030 - 1,080,030 2,108 Claims -- 1,600,000 1,600,000 -- Contributions 778,883 778,883 779,883 -779,883 1,000 Other 125,500 125,500 160,564 -160,564 35,064 General Fund Landfill Legal Costs 200,000 200,000 4,452 -4,452 (195,548) Pay Plan Contingency 273,000 ----- Total Expenditures 59,789,945 58,423,829 56,698,343 (690,827) 57,389,170 (1,034,659) Deficiency of Revenues Under Expenditures (17,678,980) (16,290,428) (13,599,293)690,827 (14,290,120) 2,000,308 Other Financing Sources (Uses) Sales of Capital Assets --5,615 -5,615 5,615 Reimbursed Administration Transfers 6,062,228 6,062,228 3,512,380 (1,949,868) 5,462,248 (599,980) Transfers In 12,299,762 12,299,762 12,254,762 (13,800) 12,268,562 (31,200) Transfer Out (315,000) (315,000) (315,000)-(315,000)- Contingency (250,159) (237,659)---237,659 Total Other Financing Sources (Uses)17,796,831 17,809,331 15,457,757 (1,963,668) 17,421,425 (387,906) Net Change in Fund Balances 117,851 1,518,903 1,858,464 (1,272,841)$ 3,131,305 1,612,402$ Fund Balances, October 1 8,192,824 8,192,824 8,192,824 8,192,824 Fund Balances, September 30 8,310,675$ 9,711,727$ 10,051,288$ 11,324,129$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual General Fund (reported as part of the General Fund) For the Fiscal Year Ended September 30, 2010 82 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Investment Income 20,000$ 20,000$ 7,837$ -$ 7,837$ (12,163)$ Other 50,000 50,000 50,000 -50,000 - Total Revenues 70,000 70,000 57,837 -57,837 (12,163) Expenditures Current General Government 967,000 1,167,000 47,242 -47,242 (1,119,758) Total Expenditures 967,000 1,167,000 47,242 -47,242 (1,119,758) Deficiency of Revenues Under Expenditures (897,000) (1,097,000)10,595 -10,595 1,107,595 Other Financing Sources Transfers In 610,000 610,000 610,000 -610,000 - Total Other Financing Sources 610,000 610,000 610,000 -610,000 - Net Change in Fund Balances (287,000) (487,000)620,595 -$ 620,595 1,107,595$ Fund Balances, October 1 1,133,823 1,133,823 1,133,823 1,133,823 Fund Balances, September 30 846,823$ 646,823$ 1,754,418$ 1,754,418$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Economic Development Fund (reported as part of the General Fund) For the Fiscal Year Ended September 30, 2010 83 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Parks and Recreation Charges for Services 94,759$ 94,759$ 118,177$ -$ 118,177$ 23,418$ Investment Income 100 100 58 - 58 (42) Total Revenues 94,859 94,859 118,235 -118,235 23,376 Expenditures Current Parks and Recreation 96,474 96,474 65,780 -65,780 (30,694) Pay Plan Contingency 372 372 ---(372) Total Expenditures 96,846 96,846 65,780 -65,780 (31,066) Deficiency of Revenues Under Expenditures (1,987)(1,987)52,455 -52,455 54,442 Other Financing Uses Reimbursed Administration Transfers (15,661)(15,661)(15,661)-(15,661)- Total Other Financing Uses (15,661)(15,661)(15,661)-(15,661)- Net Change in Fund Balances (17,648)(17,648)36,794 -$ 36,794 54,442$ Fund Balances, October 1 17,263 17,263 17,263 17,263 Fund Balances, September 30 (385)$ (385)$ 54,057$ 54,057$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Parks Xtra Education Fund (reported as part of the General Fund) For the Fiscal Year Ended September 30, 2010 84 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Fines, Forfeits, and Penalties 7,000$ 7,000$ 8,142$ -$ 8,142$ 1,142$ Investment Income 346 346 160 - 160 (186) Total Revenues 7,346 7,346 8,302 -8,302 956 Expenditures Current Total Expenditures ------ Excess of Revenues Over Expenditures 7,346 7,346 8,302 -8,302 956 Other Financing Uses Reimbursed Administration Transfers (9,685)(9,685)(9,685)-(9,685)- Total Other Financing Uses (9,685)(9,685)(9,685)-(9,685)- Net Change in Fund Balances (2,339)(2,339)(1,383)-$ (1,383)956$ Fund Balances, October 1 34,519 34,519 34,519 34,519 Fund Balances, September 30 32,180$ 32,180$ 33,136$ 33,136$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Efficiency Time Payment Fee Fund (reported as part of the General Fund) For the Fiscal Year Ended September 30, 2010 85 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Investment Income 23,600$ 23,600$ 6,152$ -$ 6,152$ (17,448)$ Rents and Royalties 355,892 355,892 437,161 - 437,161 81,269 Total Revenues 379,492 379,492 443,313 -443,313 63,821 Expenditures Current Other 250,000 300,000 166,646 -166,646 (133,354) Capital Outlay 276,385 276,385 ---(276,385) Total Expenditures 526,385 576,385 166,646 -166,646 (409,739) Deficiency of Revenues Under Expenditures (146,893) (196,893)276,667 -276,667 473,560 Other Financing Sources (Uses) Transfers In 2,700,000 2,700,000 --- (2,700,000) Transfer Out (223,615) (223,615)---223,615 Total Other Financing Sources (Uses)2,476,385 2,476,385 --- (2,476,385) Net Change in Fund Balances 2,329,492 2,279,492 276,667 -$ 276,667 (2,002,825)$ Fund Balances, October 1 1,286,665 1,286,665 1,286,665 1,286,665 Fund Balances, September 30 3,616,157$ 3,566,157$ 1,563,332$ 1,563,332$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual New Convention Center Fund (reported as part of the General Fund) For the Fiscal Year Ended September 30, 2010 86 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Investment Income 16,000$ 16,000$ 2,587$ -$ 2,587$ (13,413)$ Total Revenues 16,000 16,000 2,587 - 2,587 (13,413) Expenditures Current Capital Improvement Projects - - 2,050 - 2,050 2,050 Total Expenditures - - 2,050 - 2,050 2,050 Deficiency of Revenues Under Expenditures 16,000 16,000 537 - 537 (15,463) Other Financing Uses Transfer Out (250,000) (250,000) (250,000)-(250,000)- Total Other Financing Uses (250,000) (250,000) (250,000)-(250,000)- Net Change in Fund Balances (234,000) (234,000) (249,463)-$ (249,463)(15,463)$ Fund Balances, October 1 609,113 609,113 609,113 609,113 Fund Balances, September 30 375,113$ 375,113$ 359,650$ 359,650$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Business Park Fund (reported as part of the General Fund) For the Fiscal Year Ended September 30, 2010 87 88 COMBINING FINANCIAL STATEMENTS NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS Special revenue funds are used to account for specific revenues that are legally restricted or committed to expenditures for particular purposes other than debt service or capital projects. Court Technology Fee Fund – to account for funds collected by municipal court to be used to finance the purchase of or to maintain technological enhancements for a municipal court. Court Security Fee Fund - to account for funds collected by municipal court to be used to finance security personnel for a municipal court or to finance items when used for the purpose of providing security services. Juvenile Case Manager Fund – to account for funds collected by municipal court to be used to finance the salary and benefits of a juvenile case manager. Police Seizure Fund – to account for funds obtained through forfeiture provisions under federal laws; seized money from delivery of controlled substance in accordance with Public Health Laws. These monies are to be used for training and other law enforcement activities. American Recovery and Reinvestment Act (ARRA) Fund – to account for funds granted to the City under the ARRA. Traffic Safety Fund – to account for the receipt and expenditure of funds from the operation of red light cameras. Memorial Cemetery Fund – to account for sales of plots (and options of plots) in the Aggie Field of Honor & Municipal Cemetery. Memorial Cemetery Perpetual Care Fund – to account for principal trust amounts received and related interest income for the College Station Memorial Cemetery. Cemetery Perpetual Care Fund – to account for principal trust amounts received and related interest income for the College Station Cemetery. Hotel Occupancy Tax Fund – to account for the receipt and expenditure of funds received by the City from the assessment of hotel and motel occupancy tax. Usage of funds is restricted to the construction and maintenance of convention and civic facilities and to the promotion of tourism and arts within the City. Community Development Fund – to account for funds granted to the City by the Federal Department of Housing and Urban Development for use on various community improvement projects. Wolf Pen Creek Tax Increment Financing District Fund – 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. Parks Escrow Fund – 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 community and neighborhood parks in residential areas. Drainage Projects Fund – to account for the cost of drainage maintenance and drainage improvements made with funds provided by a drainage utility fee and proceeds from the sale of general obligation bonds. CAPITAL PROJECTS FUNDS Capital Projects Funds are used to account for the acquisition and construction of major capital improvements other than those financed by proprietary funds and trust funds. General Government Projects Fund – to account for the cost of new building construction and building improvements made with funds provided by proceeds from the sale of general obligation bonds, certificates of obligation and by investing those proceeds. Parks & Recreation Projects Fund – to account for the costs of new parks and improvements to existing parks made with funds provided from the sale of general obligation bonds, certificates of obligation and by investing those proceeds. 89 Court Technology Court Security Juvenile Case Manager Police Seizure American Recovery and Reinvestment Act (ARRA) Traffic Safety Memorial Cemetery Assets Equity in Cash and Cash Equivalents 310,281$ 145,647$ 270,425$ 66,159$ 595,442$ 318,879$ 748,794$ Equity in Investments 23,032 10,811 20,073 4,911 44,003 23,670 55,582 Receivables Accrued Interest 346 163 302 72 669 356 836 Grants ------- Accounts -----50044,516 Other ------- Less Allowance for Uncollectible Accounts ------- Inventories ------5,113,808 Total Assets 333,659$ 156,621$ 290,800$ 71,142$ 640,114$ 343,405$ 5,963,536$ Liabilities and Fund Balances Accounts Payable 1,226$ 10$ -$ 9,042$ 29,760$ 169,993$ -$ Retainage Payable ------- Accrued Liabilities ----6,055 23,648 - Other Deferred Revenues ----603,070 - 61,711 Total Liabilities 1,226 10 - 9,042 638,885 193,641 61,711 Fund Balances Nonspendable ------5,113,808 Restricted 332,433 156,611 290,800 62,100 1,229 149,764 - Committed ------788,017 Total Fund Balances 332,433 156,611 290,800 62,100 1,229 149,764 5,901,825 Total Liabilities and Fund Balances 333,659$ 156,621$ 290,800$ 71,142$ 640,114$ 343,405$ 5,963,536$ CITY OF COLLEGE STATION, TEXAS Balance Sheet Non-Major Governmental Funds September 30, 2010 Special Revenue 90 Memorial Cemetery Perpetual Care Cemetery Perpetual Care Hotel Occupancy Tax Community Development Wolf Pen Creek Incremental Financing District Parks Escrow Drainage General Government Projects Parks and Recreation Projects Total Other Governmental Funds 281,657$ 1,564,377$ 3,014,491$ 620,183$ 3,030,592$ 1,571,787$ 2,224,189$ 12,454,183$ 1,718,902$ 28,935,988$ 20,907 116,122 223,690 46,036 224,959 116,772 165,148 924,465 127,593 2,147,774 314 1,746 3,398 -3,487 1,862 2,615 13,918 1,949 32,033 ---257,035 -----257,035 34,634 8,987 518,771 ---250,547 -- 857,955 ---603,092 -----603,092 -(6,731)(57,293)---(38,623)-- (102,647) 2,518,742 315 -697,954 -----8,330,819 2,856,254$ 1,684,816$ 3,703,057$ 2,224,300$ 3,259,038$ 1,690,421$ 2,603,876$ 13,392,566$ 1,848,444$ 41,062,049$ 7,083$ 200$ -$ 19,739$ 2,270$ 21,235$ 91,223$ 40,917$ 47,555$ 440,253$ ------7,383 -4,350 11,733 ---------29,703 37,241 1,594 461,478 ------1,165,094 44,324 1,794 461,478 19,739 2,270 21,235 98,606 40,917 51,905 1,646,783 2,518,742 --603,092 -----8,235,642 -- 3,241,579 1,601,469 3,256,768 1,669,186 2,505,270 13,351,649 1,796,539 28,415,397 293,188 1,683,022 -------2,764,227 2,811,930 1,683,022 3,241,579 2,204,561 3,256,768 1,669,186 2,505,270 13,351,649 1,796,539 39,415,266 2,856,254$ 1,684,816$ 3,703,057$ 2,224,300$ 3,259,038$ 1,690,421$ 2,603,876$ 13,392,566$ 1,848,444$ 41,062,049$ Capital Projects 91 Court Technology Court Security Juvenile Case Manager Police Seizure American Recovery and Reinvestment Act (ARRA) Traffic Safety Memorial Cemetery Revenues Taxes -$ -$ -$ -$ -$ -$ -$ Intergovernmental ----580,086 - - Charges for Services ------- Fines, Forfeits, and Penalties 86,178 64,628 129,387 55,390 - 347,671 - Investment Income 1,661 901 1,166 368 1,080 2,588 3,082 Contributions ------- Other ------- Total Revenues 87,839 65,529 130,553 55,758 581,166 350,259 3,082 Expenditures Current General Government ----327,394 - - Fiscal Services 75,711 118,807 80,084 - - 170,148 - Police - - - 41,621 50,644 - - Fire - - - 4,760 - - - Planning and Development Services ----29,040 - - Public Works -----190,765 - Capital Improvement Projects ------- Parks and Recreation ----180,990 - - Information Services ------- Contributions ----29,040 - - Other ------- Capital Outlay ------- Debt Service Fiscal Charges ------- Total Expenditures 75,711 118,807 80,084 46,381 617,108 360,913 - Deficiency of Revenues Under Expenditures 12,128 (53,278) 50,469 9,377 (35,942) (10,654) 3,082 Other Financing Sources (Uses) Issuance of Debt ------- Transfers In ----37,022 - - Transfer Out -----(10,052) - Total Other Financing Sources (Uses)----37,022 (10,052) - Net Change in Fund Balances 12,128 (53,278) 50,469 9,377 1,080 (20,706) 3,082 Fund Balances, October 1 320,305 209,889 240,331 52,723 149 170,470 586,347 Adjust for Inventory under Purchases method:------5,312,396 Fund Balances, September 30 332,433$ 156,611$ 290,800$ 62,100$ 1,229$ 149,764$ 5,901,825$ CITY OF COLLEGE STATION, TEXAS Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Non-Major Governmental Funds For the Fiscal Year Ended September 30, 2010 Special Revenue 92 Memorial Cemetery Perpetual Care Cemetery Perpetual Care Hotel Occupancy Tax Community Development Wolf Pen Creek Incremental Financing District Parks Escrow Drainage General Government Projects Parks and Recreation Projects Total Other Governmental Funds -$ -$ 3,416,713$ -$ 1,158,664$ -$ -$ -$ -$ 4,575,377$ - - - 3,646,986 -----4,227,072 - 24,725 ----1,895,263 - 78,917 1,998,905 ---------683,254 1,227 7,640 12,014 - 9,928 5,879 14,915 14,704 3,731 80,884 - 100 - - - 590,487 - - - 590,587 - (900) - 31,179 - - - 82,512 3,315 116,106 1,227 31,565 3,428,727 3,678,165 1,168,592 596,366 1,910,178 97,216 85,963 12,272,185 - - 9,398 2,966,001 -----3,302,793 - - 18,773 - - - 76,382 2,857 747 543,509 ---------92,265 ---------4,760 - - - 83,102 -----112,142 ------818,571 - - 1,009,336 -----3,875 - - - 3,875 - 3,075 420,993 13,800 619 15,773 - - - 635,250 -------1,000 - 1,000 - - 1,453,635 ------1,482,675 50,696 38 - - - 45,108 15,705 - - 111,547 ----498,572 351,683 986,152 3,047,978 493,837 5,378,222 ------810109,565 787 111,162 50,696 3,113 1,902,799 3,062,903 499,191 416,439 1,897,620 3,161,400 495,371 12,788,536 (49,469) 28,452 1,525,928 615,262 669,401 179,927 12,558 (3,064,184) (409,408) (516,351) -------7,290,000 870,000 8,160,000 -------7,111 - 44,133 - - (223,615) - - - (439,414) - - (673,081) - - (223,615) - - - (439,414) 7,297,111 870,000 7,531,052 (49,469) 28,452 1,302,313 615,262 669,401 179,927 (426,856) 4,232,927 460,592 7,014,701 244,845 1,654,570 1,939,266 1,589,299 2,587,367 1,489,259 2,932,126 9,118,722 1,335,947 24,471,615 2,616,554 --------7,928,950 2,811,930$ 1,683,022$ 3,241,579$ 2,204,561$ 3,256,768$ 1,669,186$ 2,505,270$ 13,351,649$ 1,796,539$ 39,415,266$ Capital Projects 93 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Fines, Forfeits, and Penalties 75,000$ 75,000$ 86,178$ -$ 86,178$ 11,178$ Investment Income 3,220 3,220 1,661 - 1,661 (1,559) Total Revenues 78,220 78,220 87,839 -87,839 9,619 Expenditures Current Fiscal Services 68,580 118,580 75,711 -75,711 (42,869) Total Expenditures 68,580 118,580 75,711 -75,711 (42,869) Net Change in Fund Balances 9,640 (40,360)12,128 -$ 12,128 52,488$ Fund Balances, October 1 320,305 320,305 320,305 320,305 Fund Balances, September 30 329,945$ 279,945$ 332,433$ 332,433$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balances Court Technology Fee Fund For the Fiscal Year Ended September 30, 2010 94 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Fines, Forfeits, and Penalties 51,000$ 51,000$ 64,628$ -$ 64,628$ 13,628$ Investment Income 1,926 1,926 901 - 901 (1,025) Total Revenues 52,926 52,926 65,529 -65,529 12,603 Expenditures Current Fiscal Services 159,835 159,835 118,807 -118,807 (41,028) Pay Plan Contingency 694 694 ---(694) Total Expenditures 160,529 160,529 118,807 -118,807 (41,722) Net Change in Fund Balances (107,603) (107,603)(53,278)-$ (53,278)54,325$ Fund Balances, October 1 209,889 209,889 209,889 209,889 Fund Balances, September 30 102,286$ 102,286$ 156,611$ 156,611$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Court Security Fee Fund For the Fiscal Year Ended September 30, 2010 95 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Fines, Forfeits, and Penalties 104,000$ 104,000$ 129,387$ -$ 129,387$ 25,387$ Investment Income 2,354 2,354 1,166 - 1,166 (1,188) Total Revenues 106,354 106,354 130,553 -130,553 24,199 Expenditures Current Fiscal Services 97,160 97,160 80,084 -80,084 (17,076) Pay Plan Contingency 206 206 ---(206) Total Expenditures 97,366 97,366 80,084 -80,084 (17,282) Net Change in Fund Balances 8,988 8,988 50,469 -$ 50,469 41,481$ Fund Balances, October 1 240,331 240,331 240,331 240,331 Fund Balances, September 30 249,319$ 249,319$ 290,800$ 290,800$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Juvenile Case Manager Fee Fund For the Fiscal Year Ended September 30, 2010 96 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Fines, Forfeits, and Penalties 10,000$ 10,000$ 55,390$ -$ 55,390$ 45,390$ Investment Income 339 339 368 - 368 29 Total Revenues 10,339 10,339 55,758 -55,758 45,419 Expenditures Current Police 20,000 20,000 41,621 -41,621 21,621 Fire --4,760 -4,760 4,760 Total Expenditures 20,000 20,000 46,381 -46,381 26,381 Deficiency of Revenues Under Expenditures (9,661)(9,661)9,377 -9,377 19,038 Other Financing Uses Reimbursed Administration Transfers (796)(796)---796 Total Other Financing Uses (796)(796)---796 Net Change in Fund Balances (10,457)(10,457)9,377 -$ 9,377 19,834$ Fund Balances, October 1 52,723 52,723 52,723 52,723 Fund Balances, September 30 42,266$ 42,266$ 62,100$ 62,100$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Police Seizure Fund For the Fiscal Year Ended September 30, 2010 97 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Intergovernmental 22,436$ -$ 580,086$ -$ 580,086$ 580,086$ Investment Income - - 1,080 - 1,080 1,080 Total Revenues 22,436 -581,166 -581,166 581,166 Expenditures Current General Government -364,821 327,394 -327,394 (37,427) Police 22,436 -50,644 -50,644 50,644 Planning and Development Services -29,040 29,040 -29,040 - Capital Improvement Projects -29,040 ---(29,040) Parks and Recreation -552,975 180,990 7,233 173,757 (379,218) Contributions --29,040 -29,040 29,040 Total Expenditures 22,436 975,876 617,108 7,233 609,875 (366,001) Deficiency of Revenues Under Expenditures -(975,876)(35,942)(7,233)(28,709)947,167 Other Financing Sources Transfers In --37,022 -37,022 37,022 Total Other Financing Sources (Uses)--37,022 -37,022 37,022 Net Change in Fund Balances -(975,876)1,080 (7,233)$ 8,313 984,189$ Fund Balances, October 1 149 149 149 149 Fund Balances, September 30 149$ (975,727)$ 1,229$ 8,462$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual American Recovery and Reinvestment Act (ARRA) Fund For the Fiscal Year Ended September 30, 2010 98 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Fines, Forfeits, and Penalties 2,020,950$ 2,020,950$ 347,671$ -$ 347,671$ (1,673,279)$ Investment Income 589 589 2,588 - 2,588 1,999 Total Revenues 2,021,539 2,021,539 350,259 -350,259 (1,671,280) Expenditures Current Fiscal Services 1,181,214 1,181,214 170,148 -170,148 (1,011,066) Public Works 593,286 593,286 190,765 -190,765 (402,521) Pay Plan Contingency 2,022 2,022 ---(2,022) Total Expenditures 1,776,522 1,776,522 360,913 -360,913 (1,415,609) Deficiency of Revenues Under Expenditures 245,017 245,017 (10,654)-(10,654) (255,671) Other Financing Uses Reimbursed Administration Transfers (40,207)(40,207)(10,052)-(10,052)30,155 Transfer Out (72,599)(72,599)---72,599 Total Other Financing Uses (112,806) (112,806)(10,052)-(10,052)102,754 Net Change in Fund Balances 132,211 132,211 (20,706)-$ (20,706) (152,917)$ Fund Balances, October 1 170,470 170,470 170,470 170,470 Fund Balances, September 30 302,681$ 302,681$ 149,764$ 149,764$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Traffic Safety Fund For the Fiscal Year Ended September 30, 2010 99 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Investment Income 8,000$ 8,000$ 3,082$ -$ 3,082$ (4,918)$ Total Revenues 8,000 8,000 3,082 -3,082 (4,918) Expenditures Current Parks and Recreation - 7,200 - - - (7,200) Total Expenditures -7,200 ---(7,200) Net Change in Fund Balances 8,000 800 3,082 -$ 3,082 2,282$ Fund Balances, October 1 586,347 586,347 586,347 586,347 Adjust for Inventory under Purchases method 5,312,396 5,312,396 5,312,396 5,312,396 Fund Balances, September 30 5,906,743$ 5,899,543$ 5,901,825$ 5,901,825$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Memorial Cemetery Fund For the Fiscal Year Ended September 30, 2010 100 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Investment Income 2,700$ 2,700$ 1,227$ -$ 1,227$ (1,473)$ Total Revenues 2,700 2,700 1,227 -1,227 (1,473) Expenditures Current Other 75,000 75,000 50,696 -50,696 (24,304) Total Expenditures 75,000 75,000 50,696 -50,696 (24,304) Net Change in Fund Balances (72,300)(72,300)(49,469)-$ (49,469)22,831$ Fund Balances, October 1 244,845 244,845 244,845 244,845 Adjust for Inventory under Purchases method 2,616,554 2,616,554 2,616,554 2,616,554 Fund Balances, September 30 2,789,099$ 2,789,099$ 2,811,930$ 2,811,930$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Memorial Cemetery Perpetual Care Fund For the Fiscal Year Ended September 30, 2010 101 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Charges for Services -$ -$ 24,725$ -$ 24,725$ 24,725$ Investment Income 17,000 17,000 7,640 - 7,640 (9,360) Contributions - - 100 - 100 100 Other - - (900) - (900) (900) Total Revenues 17,000 17,000 31,565 - 31,565 14,565 Expenditures Current Parks and Recreation - - 3,075 - 3,075 3,075 Other - - 38 - 38 38 Total Expenditures - - 3,113 - 3,113 3,113 Net Change in Fund Balances 17,000 17,000 28,452 -$ 28,452 11,452$ Fund Balances, October 1 1,654,570 1,654,570 1,654,570 1,654,570 Fund Balances, September 30 1,671,570$ 1,671,570$ 1,683,022$ 1,683,022$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Cemetery Perpetual Care Fund For the Fiscal Year Ended September 30, 2010 102 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Hotel Occupancy Tax 3,767,000$ 3,767,000$ 3,416,713$ -$ 3,416,713$ (350,287)$ Investment Income 26,000 26,000 12,014 - 12,014 (13,986) Other 2,000 2,000 ---(2,000) Total Revenues 3,795,000 3,795,000 3,428,727 - 3,428,727 (366,273) Expenditures Current General Government --9,398 -9,398 9,398 Fiscal Services --18,773 -18,773 18,773 Parks and Recreation -14,960 420,993 406,091 14,902 (58) Contributions 1,456,000 1,456,000 1,453,635 - 1,453,635 (2,365) Total Expenditures 1,456,000 1,470,960 1,902,799 406,091 1,496,708 25,748 Deficiency of Revenues Under Expenditures 2,339,000 2,324,040 1,525,928 (406,091) 1,932,019 (392,021) Other Financing Sources (Uses) Reimbursed Administration Transfers (250,982) (250,982)-406,091 (406,091) (155,109) Transfer Out (2,700,000) (2,700,000) (223,615)-(223,615) 2,476,385 Contingency (50,000)(35,040)---35,040 Total Other Financing Sources (Uses)(3,000,982) (2,986,022) (223,615)406,091 (629,706) 2,356,316 Net Change in Fund Balances (661,982) (661,982) 1,302,313 -$ 1,302,313 1,964,295$ Fund Balances, October 1 - - 1,939,266 1,939,266 Fund Balances, September 30 (661,982)$ (661,982)$ 3,241,579$ 3,241,579$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Hotel Occupancy Tax Fund For the Fiscal Year Ended September 30, 2010 103 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Intergovernmental 1,846,430$ 1,846,430$ 3,646,986$ -$ 3,646,986$ 1,800,556$ Other - - 31,179 - 31,179 31,179 Total Revenues 1,846,430 1,846,430 3,678,165 - 3,678,165 1,831,735 Expenditures Current General Government 2,774,649 4,855,451 2,966,001 (441,392) 3,407,393 (1,448,058) Planning and Development Services - - 83,102 83,102 - - Parks and Recreation - - 13,800 13,800 - - Total Expenditures 2,774,649 4,855,451 3,062,903 (344,490) 3,407,393 (1,448,058) Deficiency of Revenues Under Expenditures (928,219) (3,009,021) 615,262 344,490 270,772 3,279,793 Other Financing Sources (Uses) Reimbursed Administration Transfers (85,416)(85,416)-96,902 (96,902)(11,486) Transfer Out (13,800)(13,800)---13,800 Total Other Financing Sources (Uses)(99,216)(99,216)-96,902 (96,902)2,314 Net Change in Fund Balances (1,027,435)(3,108,237)615,262 441,392$ 173,870 3,282,107$ Fund Balances, October 1 1,589,299 1,589,299 1,589,299 1,589,299 Fund Balances, September 30 561,864$ (1,518,938)$ 2,204,561$ 1,763,169$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Community Development Fund For the Fiscal Year Ended September 30, 2010 104 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Ad Valorem Tax 1,182,423$ 1,182,423$ 1,158,664$ -$ 1,158,664$ (23,759)$ Investment Income 20,000 20,000 9,928 - 9,928 (10,072) Total Revenues 1,202,423 1,202,423 1,168,592 - 1,168,592 (33,831) Expenditures Current Parks and Recreation - - 619 - 619 619 Capital Outlay 3,400,000 3,400,000 498,572 100,005 398,567 (3,001,433) Total Expenditures 3,400,000 3,400,000 499,191 100,005 399,186 (3,000,814) Net Change in Fund Balances (2,197,577)(2,197,577)669,401 (100,005)$ 769,406 2,966,983$ Fund Balances, October 1 2,587,367 2,587,367 2,587,367 2,587,367 Fund Balances, September 30 389,790$ 389,790$ 3,256,768$ 3,356,773$ 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 For the Fiscal Year Ended September 30, 2010 105 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Investment Income 8,000$ 8,000$ 5,879$ -$ 5,879$ (2,121)$ Contributions 300,000 300,000 590,487 - 590,487 290,487 Total Revenues 308,000 308,000 596,366 -596,366 288,366 Expenditures Current Capital Improvement Projects --3,875 3,875 -- Parks and Recreation --15,773 15,773 -- Other --45,108 -45,108 45,108 Capital Outlay 846,750 902,298 351,683 -351,683 (550,615) Total Expenditures 846,750 902,298 416,439 19,648 396,791 (505,507) Deficiency of Revenues Under Expenditures (538,750) (594,298)179,927 (19,648)199,575 793,873 Other Financing Uses Reimbursed Administration Transfers (14,388)(14,388)-14,389 (14,389)(1) Total Other Financing Uses (14,388)(14,388)-14,389 (14,389)(1) Net Change in Fund Balances (553,138) (608,686)179,927 (5,259)$ 185,186 793,872$ Fund Balances, October 1 - - 1,489,259 1,489,259 Fund Balances, September 30 (553,138)$ (608,686)$ 1,669,186$ 1,674,445$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Parks Escrow Fund For the Fiscal Year Ended September 30, 2010 106 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Other Charges for Services 1,838,100$ 1,838,100$ 1,895,263$ -$ 1,895,263$ 57,163$ Investment Income 14,000 14,000 14,915 - 14,915 915 Total Revenues 1,852,100 1,852,100 1,910,178 - 1,910,178 58,078 Expenditures Current Fiscal Services 76,078 76,078 76,382 -76,382 304 Public Works 43,200 43,200 818,571 817,631 940 (42,260) Other --15,705 -15,705 15,705 Capital Outlay 217,000 217,000 986,152 39,934 946,218 729,218 Fiscal Charges --810 -810 810 Total Expenditures 336,278 336,278 1,897,620 857,565 1,040,055 703,777 Deficiency of Revenues Under Expenditures 1,515,822 1,515,822 12,558 (857,565)870,123 (645,699) Other Financing Uses Reimbursed Administration Transfers (1,328,493) (1,328,493) (439,414)844,600 (1,284,014)44,479 Total Other Financing Uses (1,328,493) (1,328,493) (439,414)844,600 (1,284,014)44,479 Net Change in Fund Balances 187,329 187,329 (426,856)(12,965)$ (413,891) (601,220)$ Fund Balances, October 1 2,932,126 2,932,126 2,932,126 2,932,126 Fund Balances, September 30 3,119,455$ 3,119,455$ 2,505,270$ 2,518,235$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Drainage Projects Fund For the Fiscal Year Ended September 30, 2010 107 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Investment Income 47,000$ 47,000$ 14,704$ -$ 14,704$ (32,296)$ Other --82,512 -82,512 82,512 Total Revenues 47,000 47,000 97,216 -97,216 50,216 Expenditures Current Fiscal Services --2,857 -2,857 2,857 Information Technology --1,000 -1,000 1,000 Capital Outlay 1,379,798 1,906,909 3,047,978 113,708 2,934,270 1,027,361 Fiscal Charges 27,000 27,000 109,565 -109,565 82,565 Total Expenditures 1,406,798 1,933,909 3,161,400 113,708 3,047,692 1,113,783 Deficiency of Revenues Under Expenditures (1,359,798) (1,886,909) (3,064,184) (113,708) (2,950,476) (1,063,567) Other Financing Sources (Uses) Issuance of Debt 5,607,000 5,607,000 7,290,000 - 7,290,000 1,683,000 Reimbursed Administration Transfers (91,147)(91,147)-91,147 (91,147)- Transfers In -7,111 7,111 -7,111 - Total Other Financing Sources (Uses)5,515,853 5,522,964 7,297,111 91,147 7,205,964 1,683,000 Net Change in Fund Balances 4,156,055 3,636,055 4,232,927 (22,561)$ 4,255,488 619,433$ Fund Balances, October 1 9,118,722 9,118,722 9,118,722 9,118,722 Fund Balances, September 30 13,274,777$ 12,754,777$ 13,351,649$ 13,374,210$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual General Government Projects Fund For the Fiscal Year Ended September 30, 2010 108 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Parks and Recreation Charges for Services 110,800$ 110,800$ 78,917$ -$ 78,917$ (31,883)$ Investment Income 5,000 5,000 3,731 - 3,731 (1,269) Other --3,315 -3,315 3,315 Total Revenues 115,800 115,800 85,963 -85,963 (29,837) Expenditures Current Fiscal Services --747 -747 747 Capital Outlay 1,194,017 1,248,017 493,837 93,578 400,259 (847,758) Fiscal Charges 10,000 10,000 787 -787 (9,213) Total Expenditures 1,204,017 1,258,017 495,371 93,578 401,793 (856,224) Deficiency of Revenues Under Expenditures (1,088,217) (1,142,217) (409,408)(93,578) (315,830)826,387 Other Financing Sources (Uses) Issuance of Debt 1,586,000 1,586,000 870,000 -870,000 (716,000) Reimbursed Administration Transfers (65,665)(65,665)-65,665 (65,665)- Total Other Financing Sources (Uses)1,520,335 1,520,335 870,000 65,665 804,335 (716,000) Net Change in Fund Balances 432,118 378,118 460,592 (27,913)$ 488,505 110,387$ Fund Balances, October 1 1,335,947 1,335,947 1,335,947 1,335,947 Fund Balances, September 30 1,768,065$ 1,714,065$ 1,796,539$ 1,824,452$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Parks and Recreation Projects Fund For the Fiscal Year Ended September 30, 2010 109 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Investment Income 77,000$ 77,000$ 21,033$ -$ 21,033$ (55,967)$ Other --11,915 -11,915 11,915 Total Revenues 77,000 77,000 32,948 -32,948 (44,052) Expenditures Current Fiscal Services --5,225 -5,225 5,225 Public Works --15,360 -15,360 15,360 Capital Outlay 15,285,928 16,231,182 4,386,929 566,849 3,820,080 (12,411,102) Fiscal Charges 45,000 45,000 11,846 -11,846 (33,154) Total Expenditures 15,330,928 16,276,182 4,419,360 566,849 3,852,511 (12,423,671) Deficiency of Revenues Under Expenditures (15,253,928) (16,199,182) (4,386,412) (566,849) (3,819,563) 12,379,619 Other Financing Sources (Uses) Issuance of Debt 9,672,500 9,672,500 12,525,000 - 12,525,000 2,852,500 Reimbursed Administration Transfers (415,624) (415,624)-415,626 (415,626)(2) Total Other Financing Sources (Uses)9,256,876 9,256,876 12,525,000 415,626 12,109,374 2,852,498 Net Change in Fund Balances (5,997,052) (6,942,306) 8,138,588 (151,223)$ 8,289,811 15,232,117$ Fund Balances, October 1 13,747,959 13,747,959 13,747,959 13,747,959 Fund Balances, September 30 7,750,907$ 6,805,653$ 21,886,547$ 22,037,770$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Streets Projects Fund For the Fiscal Year Ended September 30, 2010 110 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Ad Valorem Tax 12,284,028$ 12,284,028$ 12,191,613$ -$ 12,191,613$ (92,415)$ Investment Income 170,000 170,000 35,352 - 35,352 (134,648) Other --30 -30 30 Total Revenues 12,454,028 12,454,028 12,226,995 - 12,226,995 (227,033) Expenditures Current Principal Retirement 8,050,000 8,050,000 8,050,000 - 8,050,000 - Interest Payments 4,152,459 4,133,633 4,133,633 - 4,133,633 - Fiscal Charges 20,000 38,826 104,757 -104,757 65,931 Total Expenditures 12,222,459 12,222,459 12,288,390 - 12,288,390 65,931 Deficiency of Revenues Under Expenditures 231,569 231,569 (61,395)-(61,395) (292,964) Other Financing Sources (Uses) Issuance of Refunding Debt -- 4,265,000 - 4,265,000 4,265,000 Premium on bonds issued --75,183 -75,183 75,183 Payment to refunded bond escrow agent -- (4,283,647)- (4,283,647) (4,283,647) Transfers In 223,615 223,615 223,615 -223,615 - Total Other Financing Sources (Uses)223,615 223,615 280,151 -280,151 56,536 Net Change in Fund Balances 455,184 455,184 218,756 -$ 218,756 (236,428)$ Fund Balances, October 1 3,901,210 3,901,210 3,901,210 3,901,210 Fund Balances, September 30 4,356,394$ 4,356,394$ 4,119,966$ 4,119,966$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Debt Service Fund For the Fiscal Year Ended September 30, 2010 111 112 COMBINING FINANCIAL STATEMENTS NONMAJOR ENTERPRISE FUNDS Sanitation Fund - to account for all sanitation collection and disposal activities by the City for both residential and commercial customers. Northgate Parking Garage Fund - to account for revenues and expenses related to the operation and maintenance of the Northgate parking garage and parking lot. 113 Sanitation Northgate Parking Garage Total Enterprise Funds Current Assets Equity in Cash and Cash Equivalents 770,365$ 1,193,972$ 1,964,337$ Equity in Investments - 88,628 88,628 Receivables Accrued Interest 24,468 1,321 25,789 Accounts 984,072 26,795 1,010,867 Loans 205,000 - 205,000 Less: Allowance for Uncollectible Accounts (138,220) (375) (138,595) Inventories 14,955 - 14,955 Total Current Assets 1,860,640 1,310,341 3,170,981 Noncurrent Assets Equity in Joint Venture 12,896,874 - 12,896,874 Loan Receivable 4,765,000 - 4,765,000 Bond Issuance Charges - (31,954) (31,954) Accumulated Amortization - 90 90 Total Deferred Charges - (31,864) (31,864) Property and Equipment Buildings - 5,743,755 5,743,755 Machinery and Equipment 4,633,188 271,826 4,905,014 Accumulated Depreciation (2,523,996) (1,464,097) (3,988,093) Land - 690,707 690,707 Total Property and Equipment 2,109,192 5,242,191 7,351,383 Total Noncurrent Assets 19,771,066 5,210,327 24,981,393 Total Assets 21,631,706 6,520,668 28,152,374 Liabilities Current Liabilities Accounts Payable 72,545 7,901 80,446 Accrued Liabilities 51,076 10,393 61,469 Other Deferred Revenues - 93,204 93,204 Accrued Interest Payable 23,668 14,776 38,444 Refundable Deposits - 6,670 6,670 Certificates of Obligation 205,000 - 205,000 General Obligation Bonds - 760,000 760,000 Total Current Liablities 352,289 892,944 1,245,233 Noncurrent Liabilities Certificates of Obligation 4,765,000 - 4,765,000 General Obligation Bonds - 3,070,000 3,070,000 Unamortized Premium/Discount on Debt - 361,295 361,295 Accrued Vacation 64,198 4,667 68,865 Post Employment Benefits 128,884 12,794 141,678 Net Pension Obligation 95,040 9,434 104,474 Total Noncurrent Liabilites 5,053,122 3,458,190 8,511,312 Total Liabilities 5,405,411 4,351,134 9,756,545 Net Assets Invested in Capital Assets, net of related debt 2,109,192 - 2,109,192 Unrestricted 14,117,103 2,169,534 16,286,637 Total Net Assets 16,226,295$ 2,169,534$ 18,395,829$ CITY OF COLLEGE STATION, TEXAS Combining Statement of Net Assets Nonmajor Enterprise Funds September 30, 2010 114 Sanitation Northgate Parking Garage Total Enterprise Funds Operating Revenues Charges for Services 6,906,026$ 1,140,833$ 8,046,859$ Other 48,182 - 48,182 Total Operating Revenues 6,954,208 1,140,833 8,095,041 Operating Expenses Salaries and Benefits 2,034,904 295,545 2,330,449 Supplies 330,023 12,530 342,553 Maintenance 441,937 34,743 476,680 Purchased Professional Services 494,574 109,030 603,604 Purchased Property Services 1,545,711 64,953 1,610,664 Other Purchased Services 745,414 88,752 834,166 Depreciation 281,629 184,179 465,808 Other 207,385 353 207,738 Total Operating Expenses 6,081,577 790,085 6,871,662 Operating Income 872,631 350,748 1,223,379 Nonoperating Revenues (Expenses) Investment Income 284,654 6,293 290,947 Gain (loss) on disposal of assets 115,606 (40,955) 74,651 Earnings in Joint Venture 345,065 - 345,065 Interest Expense (173,190) (189,932) (363,122) Other, Net (51,768) 10,205 (41,563) Total Nonoperating Revenues (Expenses) 520,367 (214,389) 305,978 Income Before Capital Contributions and Transfers 1,392,998 136,359 1,529,357 Capital Contributions and Transfers Capital Contributions 2,275,216 - 2,275,216 Transfers Out (1,112,413) (103,067) (1,215,480) Total Capital Contributions and Transfers 1,162,803 (103,067) 1,059,736 Change in Net Assets 2,555,801 33,292 2,589,093 Beginning Net Assets 13,670,494 2,136,242 15,806,736 Ending Net Assets 16,226,295$ 2,169,534$ 18,395,829$ CITY OF COLLEGE STATION, TEXAS Combining Statement of Revenues, Expenses and Changes in Net Assets Nonmajor Enterprise Funds For the Fiscal Year Ended September 30, 2010 115 Northgate Parking Sanitation Garage Total Cash Flows from Operating Activities: Cash Received from Customers 6,909,871$ 1,195,267$ 8,105,138$ Cash Payments to Suppliers for Goods and Services (4,057,204) (356,691) (4,413,895) Cash Payments to Employees for Services (1,814,051) (270,505) (2,084,556) Customer Deposits Received - (5,529) (5,529) Net Cash Provided by Operating Activities 1,038,616 562,542 1,601,158 Cash Flows from Noncapital Financing Activities: Transfers Out to Other Funds (1,112,413) (103,067) (1,215,480) Net Cash Used by Noncapital Financing Activities (1,112,413) (103,067) (1,215,480) Cash Flows from Capital and Related Financing Activities: Acquisition and Construction of Capital Assets - (37,286) (37,286) Proceeds from Sale of Assets - 3,007 3,007 Principal Paid on Certificates of Obligation (530,000) (4,530,000) (5,060,000) Interest Paid on Certificates of Obligation (506,656) (197,461) (704,117) Proceeds from General Obligation - 4,223,249 4,223,249 Loan Made to Related Party (5,121,519) - (5,121,519) Certificates of Obligation proceeds moved to Electric (5,121,519) - (5,121,519) Debt Service reimbursed 835,450 - 835,450 (10,444,244) (538,491) (10,982,735) Cash Flows from Investing Activities: Purchase of Investments (1,435,518) (395,851) (1,831,369) Proceeds from Sale and Maturities of Investment Securities 3 943 565 593 954 4 537 519 Net Cash Used by Capital and Related Financing Activities CITY OF COLLEGE STATION, TEXAS Combining Statement of Cash Flows Nonmajor Enterprise Funds For the Fiscal Year Ended September 30, 2010 Investment Securities 3,943,565 593,954 4,537,519 Investment Income 83,939 7,990 91,929 Net Cash Provided by Investing Activities 2,591,986 206,093 2,798,079 Net Increase (Decrease) in Cash and Cash Equivalents (7,926,055) 127,077 (7,798,978) Cash and Cash Equivalents, Oct. 1 8,696,420 1,066,895 9,763,315 Cash and Cash Equivalents, Sept. 30 770,365$ 1,193,972$ 1,964,337$ Reconciliation of Operating Income to Net Cash Provided by Operating Activities: Operating Income 872,631$ 350,748$ 1,223,379$ Adjustment to Reconcile Operating Income to Net Cash Provided (Used) by Operating Activities: Depreciation, Bad Debt Expense, Inventory Loss 298,324 184,532 482,856 Provision for Uncollectible Accounts 4,179 158 4,337 Miscellaneous Nonoperating Revenues (345,066) (12,546) (357,612) Miscellaneous Nonoperating Expenses (54,582) - (54,582) Changes in Operating Assets and Liabilities: Change in Accounts Receivable (35,659) 10,927 (24,732) Change in Deferred Revenues (21,200) 33,472 12,272 Change in Inventory 1,577 - 1,577 Change in Accounts Payable 28,675 (12,141) 16,534 Change in Accrued Liabilities 65,615 (10,885) 54,730 Change in Refundable Deposits - (5,529) (5,529) Change in Accrued Vacation 198 1,578 1,776 Change in OPEB 128,884 12,794 141,678 Change in Net Pension Obligation 95,040 9,434 104,474 Total Adjustments 165,985 211,794 377,779 Net Cash Provided by Operating Activities 1,038,616$ 562,542$ 1,601,158$ 116 COMBINING FINANCIAL STATEMENTS INTERNAL SERVICE FUNDS Employee Benefits Fund - to account for self-insurance activity related to administration of the City's health benefits plan. Equipment Replacement Fund - 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 Fund - to account for all activities related to the management of the City’s vehicles and heavy equipment, including preventive maintenance and vehicle repair activities. Property and Casualty Fund - 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 Fund - to account for self-insurance activity on claims filed under unemployment compensation laws. Utility Customer Service Fund - 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 Fund - to account for self-insurance activity relating to administration of the City's workers' compensation plan. 117 Employee Benefits Equipment Replacement Fleet Maintenance Property and Casualty Current Assets Equity in Cash and Cash Equivalents 4,548,569$ 5,498,632$ 402,537$ 295,740$ Equity in Investments 337,637 408,159 29,880 21,953 Receivables Accrued Interest 5,078 6,138 449 330 Accounts 11,288 - - 25,000 Other - - - - Less Allowance for Uncollectible Accounts (4,165) - - - Inventories - - 78,030 - Total Current Assets 4,898,407 5,912,929 510,896 343,023 Property and Equipment Buildings - - 786,525 - Machinery and Equipment - 19,126,457 259,884 - Accumulated Depreciation - (12,736,124) (555,426) - Total Property and Equipment - 6,390,333 490,983 - Total Assets 4,898,407$ 12,303,262$ 1,001,879$ 343,023$ Liabilities and Fund Equity Current Liabilities Accounts Payable 646,764$ 274,895$ 45,067$ 176,437$ Claims Payable 898,854 - - 391,004 Total Current Liabilities 1,545,618 274,895 45,067 567,441 Noncurrent Liabilities Accrued Vacation - - 48,410 - Post Employment Benefits 5,520 - 58,368 6,979 Net Pension Obligation 4,070 - 43,041 5,146 Total Noncurrent Liabilities 9,590 - 149,819 12,125 Total Liabilities 1,555,208 274,895 194,886 579,566 Net Assets Invested in Capital Assets, net of related debt - 6,390,333 490,983 - Restricted Bond Proceeds - 4,635 - - Unrestricted 3,343,199 5,633,399 316,010 (236,543) Total Fund Equity 3,343,199 12,028,367 806,993 (236,543) Total Liabilities and Fund Equity 4,898,407$ 12,303,262$ 1,001,879$ 343,023$ Combining Statement of Net Assets Internal Service Funds September 30, 2010 118 Unemployment Utility Customer Service Workers' Compensation Total 217,623$ 168,601$ 2,077,388$ 13,209,090$ 16,154 12,515 154,203 980,501 243 185 2,319 14,742 - 42,936 - 79,224 - 12,072 2,500 14,572 - (29,980) - (34,145) - - - 78,030 234,020 206,329 2,236,410 14,342,014 - - - 786,525 - 1,410,083 - 20,796,424 - (991,500) - (14,283,050) - 418,583 - 7,299,899 234,020$ 624,912$ 2,236,410$ 21,641,913$ -$ 13,915$ -$ 1,157,078$ --340,765 1,630,623 - 13,915 340,765 2,787,701 - 57,128 -105,538 - 95,684 6,979 173,530 - 70,557 5,146 127,960 - 223,369 12,125 407,028 - 237,284 352,890 3,194,729 - 418,583 - 7,299,899 ---4,635 234,020 (30,955) 1,883,520 11,142,650 234,020 387,628 1,883,520 18,447,184 234,020$ 624,912$ 2,236,410$ 21,641,913$ 119 Employee Benefits Equipment Replacement Fleet Maintenance Property and Casualty Operating Revenues Charges for Services -$ 3,354,514$ 1,665,602$ -$ Premiums 7,171,812 - - 944,618 Other 66,559 - - - Total Operating Revenues 7,238,371 3,354,514 1,665,602 944,618 Operating Expenses Salaries and Benefits 80,621 - 899,964 102,279 Supplies - 356,221 713,579 - Maintenance - 13,887 14,219 - Purchased Professional Services 39,511 - 569 6,000 Purchased Property Services - - 19,251 - Other Purchased Services 207 283 48,167 - Claims 6,786,914 - - 196,791 Administration Fees 484,466 - - 899,714 Contributions - 2,788,213 - - Premiums 789,566 - - 265,757 Depreciation - 2,047,835 28,424 - Other 1,170 - (261) 6,369 Total Operating Expenses 8,182,455 5,206,439 1,723,912 1,476,910 Operating Income (944,084) (1,851,925) (58,310) (532,292) Nonoperating Revenues (Expenses) Investment Income 24,728 20,796 1,432 1,073 Intergovernmental 13,914 - - - Other, Net (84,122) 209,515 407 114,604 Total Nonoperating Revenues (Expenses) (45,480) 230,311 1,839 115,677 Income Before Operating Transfers (989,564) (1,621,614) (56,471) (416,615) Transfers Transfers Out - (44,133) - - Total Operating Transfers - (44,133) - - Change in Net Assets (989,564) (1,665,747) (56,471) (416,615) Beginning Net Assets 4,332,763 13,694,114 863,464 180,072 Ending Net Assets 3,343,199$ 12,028,367$ 806,993$ (236,543)$ CITY OF COLLEGE STATION, TEXAS Combining Statement of Revenues, Expenses and Changes in Net Assets Internal Service Funds For the Fiscal Year Ended September 30, 2010 120 Unemployment Utility Customer Service Workers' Compensation Total -$ 2,081,929$ -$ 7,102,045$ 55,211 - 775,244 8,946,885 - 187,529 715 254,803 55,211 2,269,458 775,959 16,303,733 - 1,481,174 102,688 2,666,726 - 57,758 21,807 1,149,365 - 19,376 - 47,482 - 48,330 14,700 109,110 - 43,093 - 62,344 - 628,576 - 677,233 29,240 - 307,775 7,320,720 - - 52,000 1,436,180 - - - 2,788,213 - - 147,902 1,203,225 - 45,737 - 2,121,996 - 15,552 426 23,256 29,240 2,339,596 647,298 19,605,850 25,971 (70,138) 128,661 (3,302,117) 1,041 (402) 9,706 58,374 - - - 13,914 - 19,254 3,250 262,908 1,041 18,852 12,956 335,196 27,012 (51,286) 141,617 (2,966,921) - - - (44,133) - - - (44,133) 27,012 (51,286) 141,617 (3,011,054) 207,008 438,914 1,741,903 21,458,238 234,020$ 387,628$ 1,883,520$ 18,447,184$ 121 Employee Equipment Fleet Property and Benefits Replacement Maintenance Casualty Cash Flows from Operating Activities: Cash Received from Customers 7,231,773$ 3,354,514$ 1,665,602$ 944,618$ Cash Payments to Suppliers for Goods and Services (7,573,550) (2,892,824) (816,166) (1,795,644) Cash Payments to Employees for Services (71,031) - (794,620) (90,154) Cash Received for Miscellaneous Revenues - - - 114,604 Net Cash Provided (Used) by Operating Activities (412,808) 461,690 54,816 (826,576) Cash Flows from Noncapital Financing Activities: Transfers Out to Other Funds - (44,133) - - Net Cash Used by Noncapital Financing Activities - (44,133) - - Cash Flows from Capital and Related Financing Activities: Acquisition and Construction of Capital Assets - (1,335,667) - - Proceeds from Sale of Assets - 209,515 - - Net Cash Used by Capital and Related Financing Activities - (1,126,152) - - Cash Flows from Investing Activities: Purchase of Investments (1,699,555) (1,837,102) (130,634) (213,653) Proceeds from Sale and Maturities of Investment Securities 2,351,417 3,691,953 182,496 426,315 Investment Income 31,849 26,995 1,822 3,328 Net Cash Provided by Investing Activities 683,711 1,881,846 53,684 215,990 NtI (D )iCh dChEilt 270 903 1 173 251 108 500 (610 586) CITY OF COLLEGE STATION, TEXAS Combining Statement of Cash Flows Internal Service Funds For the Fiscal Year Ended September 30, 2010 Net Increase (Decrease) in Cash and Cash Equivalents 270,903 1,173,251 108,500 (610,586) Cash and Cash Equivalents, Oct. 1 4,277,666 4,325,381 294,037 906,326 Cash and Cash Equivalents, Sept. 30 4,548,569$ 5,498,632$ 402,537$ 295,740$ Reconciliation of Operating Income to Net Cash Provided by Operating Activities: Operating Income (944,084)$ (1,851,925)$ (58,310)$ (532,292)$ Adjustment to Reconcile Operating Income to Net Cash Provided (Used) by Operating Activities: Depreciation, Bad Debt Expense, Inventory Loss - 2,047,835 28,424 - Provision for Uncollectible Accounts 4,179 - - - Miscellaneous Nonoperating Revenues / Expenses (13,914) - (9,153) 106,640 Changes in Operating Assets and Liabilities: Change in Accounts Receivable (6,598) - - - Change in Inventory - - (12,325) - Change in Accounts Payable 459,372 265,780 31,532 (413,675) Change in Claims Payable 74,337 - - 626 Change in Accrued Liabilities 4,310 - (30,696) - Change in Accrued Vacation - - 3,935 - Change in OPEB 5,520 - 58,368 6,979 Change in Net Pension Obligation 4,070 - 43,041 5,146 Total Adjustments 531,276 2,313,615 113,126 (294,284) Net Cash Provided (Used) by Operating Activities (412,808)$ 461,690$ 54,816$ (826,576)$ 122 Utility Customer Workers' Unemployment Services Compensation Total 55,211$ 2,273,769$ 775,959$ 16,301,446$ (48,561) (1,032,721) (556,506) (14,715,972) - (1,316,956) (90,563) (2,363,324) - - 114,604 6,650 (75,908) 128,890 (663,246) - - - (44,133) - - - (44,133) - - - (1,335,667) - - - 209,515 - - - (1,126,152) (280,644) (368,134) (1,438,337) (5,968,059) 308,998 548,933 1,706,520 9,216,632 1,315 (410) 12,144 77,043 29,669 180,389 280,327 3,325,616 36 319 104 481 409 217 1 492 08536,319 104,481 409,217 1,492,085 181,304 64,120 1,668,171 11,717,005 217,623$ 168,601$ 2,077,388$ 13,209,090$ 25,971$ (70,138)$ 128,661$ (3,302,117)$ - 45,737 - 2,121,996 - (29,980) - (25,801) - (120,331) (12,122) (48,880) - 4,311 - (2,287) - - - (12,325) (19,321) (18,666) (5,519) 299,503 - - 5,745 80,708 - (51,059) - (77,445) - (2,023) - 1,912 - 95,684 6,979 173,530 - 70,557 5,146 127,960 (19,321) (5,770) 229 2,638,871 6,650$ (75,908)$ 128,890$ (663,246)$ 123 124 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 127 - 133) 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 134 - 141) 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 142-146) 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 147-148) 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 149-152) Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. The City implemented GASB Statement 34 in 2003; schedules presenting government-wide information include information beginning in that year. The City implemented GASB Statement 54 in 2009; schedules presenting governmental fund balance reclassifications begin in that year. 125 126 Fiscal Year 2004 2005 2006 2007 2008 2009 2010 Governmental activities Invested in capital assets, net of related debt 100,066,963$ 106,460,949$ 108,287,795$ 113,750,039$ 114,935,845$ 143,530,290$ 153,397,767$ Restricted 4,289,623 4,289,531 4,564,184 5,089,422 6,357,013 8,077,876 10,201,722 Unrestricted 25,962,837 27,897,090 39,602,065 45,967,901 59,703,654 37,712,097 37,359,741 Total governmental activities net assets 130,319,423$ 138,647,570$ 152,454,044$ 164,807,362$ 180,996,512$ 189,320,263$ 200,959,230$ Business-type activities Invested in capital assets, net of related debt 130,810,275$ 132,001,489$ 142,778,246$ 147,043,092$ 145,066,758$ 147,627,129$ 161,365,075$ Restricted 2,651,325 2,797,735 2,920,980 3,056,356 1,590,977 3,119,691 1,588,631 Unrestricted 29,665,429 30,830,640 32,980,043 37,474,945 43,957,844 47,397,414 38,818,705 Total business-type activities net assets 163,127,029$ 165,629,864$ 178,679,269$ 187,574,393$ 190,615,579$ 198,144,234$ 201,772,411$ Primary government Invested in capital assets, net of related debt 230,877,238$ 238,462,438$ 251,066,041$ 260,793,131$ 260,002,603$ 291,157,419$ 314,762,842$ Restricted 6,940,948 7,087,266 7,485,164 8,145,778 7,947,990 11,197,567 11,790,353 Unrestricted 55,628,266 58,727,730 72,582,108 83,442,846 103,661,498 85,109,511 76,178,446 Total primary government net assets 293,446,452$ 304,277,434$ 331,133,313$ 352,381,755$ 371,612,091$ 387,464,497$ 402,731,641$ Source: City of College Station Note: The City began to report accrual information when it implemented GASB Statement 34 in fiscal year 2003 CITY OF COLLEGE STATION, TEXAS NET ASSETS BY COMPONENT LAST SEVEN FISCAL YEARS (accrual basis of accounting) 127 Fiscal Year 2004 2005 2006 2007 2008 2009 2010 Expenses Governmental activities: General government 7,536,427$ 6,457,556$ 7,755,725$ 7,654,393$ 8,551,304$ 8,631,908$ 11,534,705$ Fiscal services 1,953,189 2,467,187 2,452,442 2,442,439 2,977,362 3,821,996 4,127,990 Police 9,654,447 10,666,318 11,214,413 12,299,698 13,395,874 13,945,079 16,063,347 Fire 7,189,495 7,853,876 8,280,257 9,472,331 11,359,260 11,778,585 13,301,029 Planning and development services 1,586,114 1,580,317 1,449,327 1,603,963 1,910,359 2,823,296 2,952,177 Public works 5,004,976 5,401,568 6,227,707 6,620,846 9,467,081 16,804,436 17,026,827 Capital projects - - - - 719,391 476,462 256,177 Parks and recreation 6,154,862 6,549,466 7,353,984 8,235,984 9,391,993 10,136,521 11,202,863 Library 665,291 694,445 870,203 912,527 993,102 1,052,838 1,103,864 Information services 1,987,666 2,187,418 2,280,393 2,689,720 2,749,327 3,471,714 5,048,720 Interest on long-term debt 3,448,533 3,895,520 4,116,871 4,291,022 3,860,801 4,135,146 4,111,523 Unallocated depreciation 2,690,998 5,430,745 5,759,049 6,026,372 667,890 789,074 1,047,906 Total governmental activities expense 47,871,998 53,184,416 57,760,371 62,249,295 66,043,744 77,867,055 87,777,128 Business-type activities: Electric 41,120,750 47,815,339 51,250,110 60,242,408 70,485,984 77,441,351 88,685,699 Water 6,542,184 7,908,695 7,770,081 8,302,863 8,706,415 9,287,343 10,190,159 Sewer 7,214,296 7,262,208 7,973,677 8,179,813 9,159,176 9,829,813 10,604,983 Sanitation 4,848,591 4,931,079 5,421,624 5,916,431 6,244,639 5,776,002 6,527,724 Cedar Creek Condominiums 61,150 - - - - - - Northgate parking 550,544 591,944 621,593 591,980 668,237 909,167 1,019,393 Total business-type activities expense 60,337,515 68,509,265 73,037,085 83,233,495 95,264,451 103,243,676 117,027,958 Total primary government expense 108,209,513$ 121,693,681$ 130,797,456$ 145,482,790$ 161,308,195$ 181,110,731$ 204,805,086$ Program Revenues Governmental activities: Charges for services: Fines, forfeits and penalties 3,563,970$ 4,008,637$ 3,798,807$ 3,618,236$ 3,798,313$ 4,491,960$ 4,500,447$ Licenses and permits 1,215,924 1,043,672 1,091,848 1,306,690 1,154,902 1,007,151 964,344 Public works 1,784,694 1,110,686 1,290,935 1,199,565 1,255,525 1,793,174 1,895,263 Parks and recreation 1,346,580 1,044,134 1,244,476 1,420,284 1,911,789 1,838,810 1,722,840 Other activities 1,614,408 2,002,338 2,656,136 3,210,563 3,548,309 4,494,627 3,378,603 Operating grants and contributions 3,208,957 2,629,494 3,144,254 2,038,535 1,735,170 1,896,623 1,694,228 Capital grants and contributions 5,266,837 4,489,883 7,477,874 5,271,090 3,055,501 2,644,629 19,587,921 Total governmental activities program revenues 18,001,370 16,328,844 20,704,330 18,064,963 16,459,509 18,166,974 33,743,646 Business-type activities: Charges for services: Electric sales 47,431,497 51,467,169 60,217,421 67,462,075 76,787,412 82,904,777 91,162,890 Water sales 8,319,779 9,519,714 10,852,660 10,060,398 12,025,086 17,312,431 12,745,173 Sewer service 9,334,778 9,697,314 10,363,603 10,590,688 11,184,565 11,655,528 11,522,025 Garbage collection fees 4,829,150 5,151,204 6,419,446 7,512,194 9,628,798 7,988,795 7,299,273 Parking garage fees 603,465 480,627 576,892 620,124 673,818 990,735 1,140,833 Operating grants and contributions - - - - - 17,792 - Capital grants and contributions 5,179,221 1,937,320 4,677,465 4,041,105 5,349,125 6,846,033 11,703,035 Total business-type activities program revenues 75,697,890 78,253,348 93,107,487 100,286,584 115,648,804 127,716,091 135,573,229 Total primary government program revenues 93,699,260$ 94,582,192$ 113,811,817$ 118,351,547$ 132,108,313$ 145,883,065$ 169,316,875$ CITY OF COLLEGE STATION, TEXAS CHANGES IN NET ASSETS LAST SEVEN FISCAL YEARS (accrual basis of accounting) 128 Fiscal Year 2004 2005 2006 2007 2008 2009 2010 Net (Expense)/Revenue Governmental activities (29,870,628)$ (36,855,572)$ (37,056,041)$ (44,184,332)$ (49,584,235)$ (59,700,081)$ (54,033,482)$ Business-type activities 15,360,375 9,744,083 20,070,402 17,053,089 20,384,355 24,472,415 18,545,271 Total primary government net expense (14,510,253)$ (27,111,489)$ (16,985,639)$ (27,131,243)$ (29,199,880)$ (35,227,666)$ (35,488,211)$ General Revenues and Other Changes in Net Assets Governmental activities: Taxes Property taxes 14,668,641$ 15,888,475$ 16,646,519$ 18,573,309$ 20,670,112$ 22,769,699$ 24,745,344$ Sales and mixed beverage taxes 15,238,995 15,705,090 17,082,936 18,449,731 20,241,973 19,873,213 19,751,004 Franchise taxes 1,974,587 1,718,491 2,132,341 1,931,196 2,090,779 2,217,618 2,210,902 Hotel taxes 2,191,429 2,306,928 2,671,417 2,980,250 3,585,512 3,574,649 3,387,041 Unrestricted investment earnings 1,224,546 1,487,926 3,415,849 4,512,575 3,385,844 1,413,431 265,424 Gain (Loss) on sale of capital assets 4,386 (111,916) - - - - (24,596) Adjustment to claims payable (904,263) - - - - - - Transfers (904,783) 8,188,725 8,850,453 10,090,589 7,559,165 12,778,642 15,337,330 Total governmental activities 33,493,538 45,183,719 50,799,515 56,537,650 57,533,385 62,627,252 65,672,449 Business-type activities: Unrestricted investment earnings 662,359 947,477 1,829,456 1,932,624 1,330,785 654,882 420,236 Correction to value of capital assets 2,108,473 - - - - - - Transfers 904,783 (8,188,725) (8,850,453) (10,090,589) (10,433,954) (12,778,642) (15,337,330) Total business-type activities 3,675,615 (7,241,248) (7,020,997) (8,157,965) (9,103,169) (12,123,760) (14,917,094) Total primary government 37,169,153$ 37,942,471$ 43,778,518$ 48,379,685$ 48,430,216$ 50,503,492$ 50,755,355$ Change in net assets Governmental activities 3,622,910$ 8,328,147$ 13,743,474$ 12,353,318$ 7,949,150$ 2,927,171$ 11,638,967$ Business-type activities 19,035,990 2,502,835 13,049,405 8,895,124 11,281,186 12,348,655 3,628,177 Total primary government 22,658,900$ 10,830,982$ 26,792,879$ 21,248,442$ 19,230,336$ 15,275,826$ 15,267,144$ Source: City of College Station Notes: The City began to report accrual information when it implemented GASB Statement 34 in fiscal year 2003. Adjustment to claims payable in fiscal year 2004 is a prior period adjustment. CITY OF COLLEGE STATION, TEXAS CHANGES IN NET ASSETS - Continued LAST SEVEN FISCAL YEARS (accrual basis of accounting) 129 Program Revenues2004200520062007200820092010Function/ProgramGovernmental activities: General government 3,618,878$ 3,121,430$ 4,357,597$ 3,343,904$ 2,501,778$ 1,957,500$ 5,124,710$ Fiscal services 333,043 508,810 547,790 409,100 684,666 38,377 100,495 Police 3,677,391 4,093,425 3,875,900 3,713,866 4,533,697 5,004,712 5,161,486 Fire 724,278 916,804 817,910 1,400,464 1,137,759 3,551,620 2,199,375 Planning and development services 1,215,924 1,043,672 1,091,848 1,306,690 1,357,037 1,051,943 1,075,342 Public works 7,051,531 5,600,569 8,768,809 6,470,655 4,312,571 4,445,595 15,313,779 Capital Improvement Program951,686 Parks and recreation 1,380,325 1,044,134 1,244,476 1,420,284 1,932,001 2,117,227 3,816,773 Subtotal governmental activities 18,001,370 16,328,844 20,704,330 18,064,963 16,459,509 18,166,974 33,743,646 Business-type activities: Electric 48,032,185 52,780,914 62,284,935 69,033,816 77,419,441 84,552,573 92,530,434 Water 10,260,307 9,826,360 12,409,728 11,314,888 14,115,391 19,065,662 17,118,922 Sewer 11,972,783 10,014,243 11,416,486 11,805,562 13,811,356 15,100,534 15,208,551 Sanitation 4,829,150 5,151,204 6,419,446 7,512,194 9,628,798 8,006,587 9,574,489 Northgate parking 603,465 480,627 576,892 620,124 673,818 990,735 1,140,833 Subtotal business-type activities75,697,890 78,253,348 93,107,487 100,286,584 115,648,804 127,716,091 135,573,229 Total primary government93,699,260$ 94,582,192$ 113,811,817$ 118,351,547$ 132,108,313$ 145,883,065$ 169,316,875$ Source: City of College StationCITY OF COLLEGE STATION, TEXASPROGRAM REVENUES BY FUNCTION/PROGRAMLAST SEVEN FISCAL YEARS(accrual basis of accounting)130 2001200220032004200520062007200820092010General Fund Nonspendable62,390$ 70,516$ Restricted95,220 849,622 Assigned1,663,400 1,794,416 Unassigned7,557,419 11,101,327 Reserved 660,488$ 989,028$ 1,728,294$ 1,089,510$ 1,132,180$ 1,523,619$ 1,108,449$ 2,305,476$ - - Unreserved 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 9,432,700$ 10,111,225$ 11,250,335$ 10,702,952$ 10,170,525$ 10,972,008$ 12,932,589$ 11,985,389$ 9,378,429$ 13,815,881$ All Other Governmental Funds Nonspendable859,654$ 8,235,642$ Restricted39,375,368 54,421,910 Commited 2,627,403 2,764,227 Assigned609,113 - Unassigned545,024 - Reserved 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 12,749,505 12,460,155 10,851,935 6,085,255 6,244,225 7,462,140 10,148,840 11,526,009 - - Fiscal YearCITY OF COLLEGE STATION, TEXASFUND BALANCES, GOVERNMENTAL FUNDSLAST TEN FISCAL YEARS(modified accrual basis of accounting) Capital projects funds25,443,167 33,275,222 - - - - - - - Total all other governmental funds 47,588,293$ 56,420,715$ 51,971,829$ 48,607,634$ 49,243,336$ 56,574,114$ 56,521,114$ 60,345,547$ 44,016,562$ 65,421,779$ Source: City of College StationNote: Fiscal years 1998 through 2002 have been restated to include trust funds.The City implemented GASB Statement 54 in 2009; schedules presenting governmental fund balance reclassifications begin in that year131 2001200220032004200520062007200820092010RevenuesTaxes 27,254,701$ 29,499,644$ 31,277,451$ 34,073,652$ 35,618,984$ 38,533,213$ 41,934,486$ 46,588,376$ 48,435,179$ 49,901,803$ Licenses and permits 779,159 870,636 1,012,960 1,112,766 1,025,013 945,593 1,191,105 1,154,902 1,007,151 964,344 Intergovernmental 3,221,851 2,572,428 1,950,883 3,208,957 2,592,312 3,144,254 2,038,535 1,707,957 1,896,623 5,022,822 Charges for services 2,038,422 2,251,297 2,610,056 2,538,583 2,634,683 2,925,281 3,339,352 3,790,147 3,543,064 6,042,105 Fines, forfeits and penalties 1,798,870 2,225,354 2,657,643 2,966,278 3,518,940 3,285,907 3,256,488 3,798,313 4,491,960 4,500,447 Special assessments 944,636 982,760 1,035,023 1,062,179 1,110,686 1,290,935 1,199,565 1,255,525 1,793,174 - Investment income 3,487,814 2,615,798 1,543,026 1,062,069 1,269,201 3,066,642 3,864,797 2,886,636 1,125,382 206,648 Rents and royalties 213,832 228,392 233,026 256,023 243,831 244,864 261,225 279,004 769,150 749,635 Loan repayments 9,979 9,626 11,322 5,418 2,541 - - - - - Contributions 448,949 356,369 475,913 784,402 37,182 12,281 31,605 27,213 26,997 605,953 Reimbursed expenditures531,307 32,803 7,258 28,393 - 145,749 479,675 46,038 413,751 - Other revenues551,280 437,359 335,405 679,349 631,192 447,432 738,415 1,046,431 403,548 267,695 Total revenues41,280,800 42,082,466 43,149,966 47,778,069 48,684,565 54,042,151 58,335,248 62,580,542 63,905,979 68,261,452 ExpendituresGeneral government2,909,436 3,801,250 3,765,079 4,187,972 4,480,075 4,216,582 4,699,159 7,319,662 5,435,355 7,401,157 Fiscal services1 889 6112 112 9362 319 0082 479 0823 038 1453 050 5333 013 5483 573 6863 836 7863 635 009CITY OF COLLEGE STATION, TEXASCHANGES IN FUND BALANCES, GOVERNMENTAL FUNDSLAST TEN FISCAL YEARS(modified accrual basis of accounting)Fiscal YearFiscal services1,889,611 2,112,936 2,319,008 2,479,082 3,038,145 3,050,533 3,013,548 3,573,686 3,836,786 3,635,009 Police 8,273,632 8,829,060 9,143,331 9,803,577 10,829,081 11,559,669 12,556,678 13,219,117 14,107,740 13,816,620 Fire 5,702,804 6,340,775 6,989,125 7,275,289 7,964,785 8,493,228 9,622,195 11,251,400 11,754,088 11,418,948 Planning and development services 1,887,378 1,883,224 1,935,277 1,964,001 1,962,603 1,877,732 2,008,901 2,281,747 2,871,341 2,568,464 Public works 4,583,796 5,207,101 5,292,243 5,534,404 6,117,241 7,116,329 7,440,854 7,182,443 7,920,003 7,123,885 Capital improvement projects - - - - - - - 715,707 476,462 132,880 Economic and community development 41,623 122,074 6,369 16,886 11,281 - - - - - Parks and recreation 5,200,809 5,862,938 6,279,342 6,388,099 6,778,196 7,520,189 8,167,857 9,071,198 9,355,301 8,930,388 Information systems 2,229,600 2,243,844 2,320,950 2,346,534 2,500,518 2,596,591 3,070,524 3,366,764 3,299,105 3,887,102 Library 581,768 670,818 681,350 665,291 694,445 870,203 912,527 993,102 1,119,771 1,080,030 Reimbursed administrative (3,538,877) (3,559,556) (3,703,529) (3,328,431) (3,485,807) (3,335,264) (3,305,040) (3,772,362) - - Claims1,600,000 Contributions1,541,173 1,348,885 1,573,651 2,504,589 1,895,742 1,995,564 1,855,961 2,151,592 2,489,562 2,266,558 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 grant763,303 - - - - - - - - - Other expenditures577,606 183,450 624,837 253,270 296,344 108,527 147,860 204,338 487,163 438,757 Capital outlay9,885,474 13,702,819 11,286,448 12,775,413 15,435,376 11,610,189 14,213,574 19,538,322 31,931,401 9,765,151 132 2001200220032004200520062007200820092010Debt service Principal 4,475,000 5,950,000 5,820,000 10,110,000 6,190,000 7,285,000 7,820,000 8,530,000 7,935,000 8,050,000 Interest 3,213,770 3,425,390 3,647,529 3,376,538 3,885,075 4,078,635 4,212,245 3,892,490 4,114,356 4,133,633 Issuance costs 77,244 115,500 118,335 352,114 118,261 - - - - Fiscal charges 8,926 8,752 12,500 15,332 13,871 152,729 527,806 70,796 46,551 227,765 Intergovernmental - - 223,608 221,902 97,621 743,117 342,630 881,604 745,908 - Total expenditures 50,304,076 59,415,009 58,966,401 67,447,541 69,537,871 71,120,163 77,846,797 90,471,606 107,925,893 86,476,347 Deficiency of revenues under expenditures(9,023,276) (17,332,543) (15,816,435) (19,669,472) (20,853,306) (17,078,012) (19,511,549) (27,891,064) (44,019,914) (18,214,895) Other Financing Sources (Uses)Proceeds from long-term debt 7,292,870 20,056,200 6,570,000 16,375,000 13,347,581 15,700,000 7,890,000 19,970,000 9,815,000 20,685,000 Proceeds from refunding bonds - - - 5,980,000 - - 10,255,000 - - 4,265,000 Payment to bond escrow agent- - - (6,260,371) - - (10,451,378) - - (4,283,647) Premium on bonds issued- - - 280,371 - - 373,648 - - 75,183 Fiscal YearCITY OF COLLEGE STATION, TEXASCHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS - ContinuedLAST TEN FISCAL YEARS(modified accrual basis of accounting)Sale of capital assets580,909 30,106 19,563 4,386 12,182 17,500 318,103 10,981 505,606 5,615 Transfers in14,945,966 8,764,250 7,910,690 10,945,210 11,476,019 11,864,435 15,054,935 13,828,414 22,680,922 16,054,544 Transfers out(1,550,693) (2,007,066) (1,993,594) (11,566,702) (3,879,201) (2,371,662) (2,021,178) (3,041,098) (8,494,139) (673,081) Total other financing sources21,269,052 26,843,490 12,506,659 15,757,894 20,956,581 25,210,273 21,419,130 30,768,297 24,507,389 36,128,614 Net change in fund balances12,245,776$ 9,510,947$ (3,309,776)$ (3,911,578)$ 103,275$ 8,132,261$ 1,907,581$ 2,877,233$ (19,512,525)$ 17,913,719$ Debt services as a percentage of noncapital expenditures19.2%20.8%20.1%25.3%18.9%19.4%19.7%17.6%15.9%16.2%Source: City of College StationNotes: Direct capital expenditures have been removed from departmental expenditure lines and included in the capital outlay line item.Fiscal years 2000 through 2001 Community Development expenditures are not split between CDBG and HOME. In these years, they are stated as one line item.Fiscal years 2000 through 2002 have been restated to include trust funds.133 Fiscal Year Property Sales Hotel Franchise Mixed Drink Total2001 10,735,576 12,773,722 1,843,419 1,644,627 257,357 27,254,701 2002 12,224,416 13,400,054 1,926,009 1,714,241 234,924 29,499,644 2003 13,441,000 13,780,639 2,120,015 1,688,947 246,850 31,277,451 2004 14,668,641 14,957,697 2,191,429 1,974,587 281,298 34,073,652 2005 15,888,475 15,445,404 2,306,928 1,718,491 259,686 35,618,984 2006 16,646,519 16,752,174 2,671,417 2,132,341 330,762 38,533,213 2007 18,573,309 18,077,973 2,980,250 1,931,196 371,758 41,934,486 2008 20,670,112 19,822,906 3,585,512 2,090,778 419,067 46,588,375 2009 22,769,698 19,438,179 3,574,649 2,217,619 435,034 48,435,179 2010 24,523,184 19,328,578 3,416,713 2,210,902 422,426 49,901,803 Change2001-2010 128.4%51.3% 85.3% 34.5% 64.1%83.1%Source: City of College StationNote: Property taxes include general fund, debt service fund, Melrose Apartment TIF (2000-2002), Northgate TIF(2008-2009) and Wolf Pen Creek TIF (1996 - 2010).CITY OF COLLEGE STATION, TEXASTAX REVENUE BY SOURCE, GOVERNMENTAL FUNDSLAST TEN FISCAL YEARS(modified accrual basis of accounting)134 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 Value2001 $ 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 2,674,807,515 100.68%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 99.87%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%2009 3,606,901,737 1,191,974,529 927,276,877 701,998,930 78,082,864 4,946,071,349 0.4394 4,946,071,349 100.00%2010 3,941,112,015 1,236,193,238 1,069,742,963 856,257,215 69,373,412 5,321,417,589 0.4394 5,321,417,589 100.00%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 YEARS135 General Total College Fiscal Basic Obligation Direct Station Brazos Year Rate Debt Service Rate ISD County 2001 0.1662 0.2631 0.4293 1.7500 0.4100 2002 0.1846 0.2931 0.4777 1.7900 0.4200 2003 0.1946 0.2831 0.4777 1.7900 0.4146 2004 0.1921 0.2732 0.4653 1.7700 0.4350 2005 0.1942 0.2698 0.4640 1.7700 0.4726 2006 0.1896 0.2498 0.4394 1.6750 0.4650 2007 0.1910 0.2484 0.4394 1.4800 0.4550 2008 0.1910 0.2484 0.4394 1.2411 0.4650 2009 0.1934 0.2460 0.4394 1.2211 0.4800 2010 0.2100 0.2294 0.4394 1.2534 0.4800 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) 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/$100 of assessed value for each jurisdiction by State Statute. This limit is for both operations and debt service combined. 136 Percent of Percent of of Total Cityof Total CityTaxableTaxableTaxableTaxable2009 AssessedAssessed2000 AssessedAssessedTaxpayerValueRankValueValueRankValueCollege Station Hospital LP60,273,470$ 11.13%25,132,560$ 61.11%C.B.L. & Associates (Post Oak Mall)55,547,960 21.04%48,617,375 12.14%Jamespoint Management53,687,810 31.01%SHP-The Callaway House LP51,200,280 40.96%16,200,000 90.71%Jefferson Enclave LP43,603,750 50.82%Weinberg, Israel & David Alkosser43,527,600 60.82%30,674,775 51.35%Woodland of College Station LP42,295,030 70.79%SW Meadows Point LP39,139,690 80.74%Walmart/Sam's33,504,790 90.63%19,667,890 70.87%Commonwealth Austin CH LP30,000,000 100.56%W9/JP-M Real Estate Ltd40,630,000 21.79%University Heights - College Station LP31,696,491 41.39%Verizon Communications, Inc.35,241,110 31.55%University Commons-Phase 1&218,408,250 80.81%Melrose Apartments16,000,000 100.70%452,780,380$ 8.50%282,268,451$ 12.42%Source: Brazos County Appraisal DistrictCITY OF COLLEGE STATION, TEXASPRINCIPAL PROPERTY TAXPAYERSCURRENT YEAR AND NINE YEARS AGO2010 2001 137 Fiscal Year Taxes LeviedCollectionsEnded for thePercentage in SubsequentPercentageSept 30 Fiscal Year Amount of Levy YearsAmountof Levy2001 $ 9,939,852 $ 9,835,960 98.95% $ 95,764 $ 9,931,724 99.92%2002 11,892,629 11,735,174 98.68% 149,426 11,884,600 99.93%2003 13,010,508 12,740,869 97.93% 259,629 13,000,498 99.92%2004 14,092,814 13,974,666 99.16% 106,100 14,080,766 99.91%2005 15,270,852 15,160,102 99.27% 100,674 15,260,776 99.93%2006 16,162,073 15,938,981 98.62% 122,454 16,061,435 99.38%2007 17,818,419 17,697,220 99.32%18,608 17,715,828 99.42%2008 19,973,882 19,773,036 98.99%74,562 19,847,598 99.37%Fiscal Year of the LevyCITY OF COLLEGE STATION, TEXASLAST TEN FISCAL YEARSPROPERTY TAX LEVIES AND COLLECTIONSCollected within theTotal Collections to Date0089,9 3,889, 3,03698 99%,569,8 ,59899 3 %2009 22,076,134 21,795,748 98.73% 144,250 21,939,998 99.38%2010 23,623,086 23,435,105 99.20%- 23,435,105 99.20%Sources: City Of College Station and Brazos County Tax Office138 2000200120022003200420052006200720082009Utilities 12,319$ 13,645$ 15,169$ 14,929$ 14,943$ 16,684$ 19,336$ 22,403$ 25,483$ 26,442$ Construction4,465 5,805 6,240 5,500 6,477 12,076 13,918 15,818 15,768 10,617 Manufacturing6,602 6,656 7,950 7,921 9,323 12,926 13,066 13,200 16,391 12,221 Wholesale Trade5,419 7,069 18,918 12,332 24,173 25,939 17,482 8,759 13,761 9,856 Retail Trade482,261 482,859 489,059 513,638 529,284 563,662 608,940 686,271 693,673 653,561 Information2,613 2,330 10,755 15,312 16,092 14,409 14,082 12,148 15,427 15,654 Finance and Insurance65 67 60 55 119 130 216 541 752 706 Real Estate and Rental/Leasing- - 10,462 11,032 12,258 12,024 15,679 16,249 18,326 9,288 Professional, Scientific and Tech Services- - 7,627 7,660 8,618 8,692 9,530 11,074 26,234 25,694 Administrative, Support, Waste Mgmt, Remediation- - 12,866 14,703 14,655 15,133 16,462 15,054 18,362 17,610 Educational Services- - 98 93 22,981 26,252 29,592 32,502 27,645 35,351 Health Care and Social Assistance- - 986 1,721 1,951 2,547 2,873 4,051 2,888 2,301 Arts, Entertainment and Recreation3,071 3,588 5,382 5,480 6,173 6,781 6,949 7,399 9,168 8,671 Accommodation and Food Services113,010 116,051 129,054 137,440 147,277 158,267 169,900 185,723 205,967 204,731 Other Services88,939 90,845 37,802 36,954 34,563 38,894 17,069 14,539 15,782 15,338 Total718,764$ 728,915$ 752,428$ 784,770$ 848,887$ 914,416$ 955,094$ 1,045,731$ 1,105,627$ 1,048,041$ City direct sales tax rate1.50%1.50%1.50%1.50%1.50%1.50%1.50%1.50% 1.50% 1.50%Source: Texas State Comptroller of Public AccountsCITY OF COLLEGE STATION, TEXASTAXABLE SALES BY CATEGORYLAST TEN CALENDAR YEARS(in thousands of dollars)Notes: Taxable sales information is not available on a fiscal-year basis. The state converted from reporting SICS classification of industries to NAICS classification of industries effective with the reporting year 2002.Data reported for the years 1999 through 2001 is classified under the old SICS codes and every effort was made to compare like industries. The categories listed with no sales for 1999 through 2001 are includedin Other Services for those years. This report includes data only from holders of sales tax permits. If fewer than four outlets reported in a quarter, the data is omitted as required by state disclosure laws.139 City Brazos State of Fiscal Year Direct Rate County Texas2001 1.50% 0.50% 6.25%2002 1.50% 0.50% 6.25%2003 1.50% 0.50% 6.25%2004 1.50% 0.50% 6.25%2005 1.50% 0.50% 6.25%2006 1.50% 0.50% 6.25%2007 1.50% 0.50% 6.25%2008 1.50% 0.50% 6.25%2009 1.50% 0.50% 6.25%2010 1.50% 0.50% 6.25%Source: Texas State Comptroller of Public AccountsCITY OF COLLEGE STATION, TEXASDIRECT AND OVERLAPPING SALES TAX RATESLAST TEN FISCAL YEARS140 Number PercentageTaxPercentageNumber PercentageTaxPercentageof Outlets of TotalLiabilityof Totalof Outlets of TotalLiabilityof TotalRetail trade973 61.67%8,929$ 82.84%1,223 55.09%12,874$ 81.92%Services402 25.48%938 8.70%440 19.82%1,373 8.73%Wholesale trade40 2.53%474 4.40%63 2.84%148 0.94%Utilities, transportation, communications22 1.39%224 2.08%19 0.86%398 2.53%Manufacturing35 2.22%99 0.92%71 3.20%183 1.17%Construction47 2.98%67 0.62%104 4.68%159 1.01%Agriculture, forestry, and fishing40 2.53%46 0.43%36 1.62%131 0.83%Finance, insurance, real estate12 0.76%1 0.01%59 2.66%150 0.95%All other outlets7 0.44%- 0.00%205 9.23%304 1.93%Total1,578 100.00%10,778$ 100.00%2,220 100.00%15,720$ 100.01%Source: Texas State Comptroller of Public AccountsTax liability information is not available on a fiscal-year basis.Notes: 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.The category labeled "All other outlets" is higher than normal in 2009 due to the State Comptroller's conversion from SIC classification codes to NAICS classification codes. The State reports in SIC classifications andCalendar Year 2000Calendar Year 2009CITY OF COLLEGE STATION, TEXASSALES TAX REVENUE PAYERS BY INDUSTRYCALENDAR YEARS 2000 AND 2009(dollars are in thousands)new outlets added since the conversion began are labeled within the SIC classification of "other". gygpp141 Public PropertyGeneralFinanceUtilityUtility Revenue Utility RevenueTotalPercentageFiscalObligation Certificates of ContractualRevenueCapitalCertificatesGeneralCertificatesGeneralPrimary of Personal PerYearBondsObligationObligationsBondsLeasesof Obligation Obligation Bonds of Obligation Obligation Bonds Government Income Capita2001 $ 39,375,000 $ 20,595,000 $- $ 63,185,000 $- $- $- $- $- $ 123,155,000 11.96% 1,710 200241,665,000 33,280,000 - 78,235,000 - - - - - 153,180,000 2,022 200343,170,000 32,525,000 - 79,680,000 - - - - - 155,375,000 1,984 200447,085,000 34,705,000 - 75,655,000 - - - - - 157,445,000 1,963 200549,800,000 30,195,000 - 79,215,000 - - - 8,910,000 - 168,120,000 2,052 200653,835,000 34,905,000 - 91,460,000 - - - 8,580,000 - 188,780,000 15.39% 2,244 200755,720,000 33,500,000 - 105,215,000 - - - 8,240,000 - 202,675,000 15.49% 2,330 200860,695,000 39,965,000 - 99,560,000 - - - 23,820,000 - 224,040,000 12.90% 2,465 200959,145,000 38,575,000 - 93,755,000 - 4,530,000 - 47,755,000 - 243,760,000 14.34% 2,608 201075,020,000 35,675,000 - 87,745,000 - - 3,830,000 48,970,000 - 251,240,000 15.76% 2,660 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 - 2010.In 2009 the Parking Garage Fund began paying for the Parking Garage debt. In 2010 the Parking Garage Certificates of Obligation were refunded and became General Obligation Bond.Governmental ActivitiesCITY OF COLLEGE STATION, TEXASRATIOS OF OUTSTANDING DEBT BY TYPELAST TEN FISCAL YEARSBusiness-Type Activities142 GeneralPercentage ofObligation Less Debt ServiceNetActual TaxableFiscal Year BondsCash Funds Bonded Debt Value of Property Per Capita2001 $ 39,375,000 $ 1,722,254 $ 37,652,746 1.66%523200241,665,000 1,287,038 40,377,962 1.65%533200343,170,000 659,180 42,510,820 1.59%543200447,085,000 585,336 46,499,664 1.56%580200549,800,000 912,353 48,887,647 1.50%597200653,835,000 1,645,563 52,189,437 1.45%620CITY OF COLLEGE STATION, TEXASRATIOS OF NET GENERAL BONDED DEBT OUTSTANDINGLAST TEN FISCAL YEARS00653,835,000,6 5,5635 , 89, 35%60200755,720,000 2,060,709 53,659,291 1.34%617200860,695,000 2,573,421 58,121,579 1.30%644200959,145,000 3,125,126 56,019,874 1.13%599201075,020,000 4,115,689 70,904,311 1.33%751Source: City of College StationNotes: Details regarding the City's outstanding debt can be found in the notes to the financial statements.143 Estimated Estimated Share Debt Percentage of Direct and Governmental Unit Outstanding Applicablea Overlapping Debt Debt repaid with property taxes College Station I.S.D.133,140,000$ 87.57% 116,590,698$ Brazos County 101,495,000 49.40% 50,138,530$ Bryan I.S.D.162,580,000 1.45% 2,357,410$ Other debt College Station I.S.D.206,042 87.57%180,431$ Brazos County - 49.40%-$ Bryan I.S.D. Capital Lease - 1.45%-$ Subtotal, overlapping debt 169,267,069$ City direct debt 110,695,000$ Total direct and overlapping debt 279,962,069$ 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, 2010 144 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, 2010 145 UtilityLess:NetAverage MaximumServiceOperatingAvailable Debt Service Annual Debt Service AnnualFiscal Year ChargesExpensesRevenueTotal Coverage Total Coverage2001 $ 59,143,896 $ 45,465,778 $ 13,678,118 $ 4,688,518 2.92 $ 6,395,244 2.14 200262,141,066 46,274,555 15,866,511 5,825,064 2.728,048,707 1.97 200364,046,246 47,785,550 16,260,696 5,773,582 2.828,084,285 2.01 200464,785,122 44,719,241 20,065,881 5,651,966 3.557,998,465 2.51 200570,636,853 51,125,745 19,511,108 5,522,447 3.538,364,747 2.33200680,787,029 54,432,847 26,354,182 6,423,582 4.109,163,574 2.88200787,911,120 63,514,543 24,396,577 7,389,770 3.3010,408,958 2.34 200899,610,432 73,195,783 26,414,649 8,620,759 3.0612,245,949 2.16 2009108,367,552 80,848,570 27,518,982 9,834,136 2.8013,870,272 1.98 2010115,430,088 91,551,103 23,878,985 8,976,012 2.6613,669,444 1.75 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.Maximum Debt Service Total includes Utility Revenue Bonds and Certificates of Obligation that have been issued for Utility projects. 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 YEARS146 Personal Income Calendar (thousands Per Capita Unemployment Year Population of dollars)Personal Income Rate 2000 67,890 1,029,891$ 15,170$ 1.6 2001 72,020 - - 1.7 2002 75,752 - - 2.0 2003 78,309 - - 2.4 2004 80,214 - - 2.0 2005 81,930 1,226,974 14,976 3.7 2006 84,116 1,308,384 15,555 3.9 2007 86,982 1,736,221 19,961 3.8 2008 90,897 1,699,361 18,695 4.1 2009 93,450 1,594,056 17,058 5.3 Sources: City of College Station Planning Division (population) U. S. Census Bureau, American Community Survey (personal income) Texas Workforce Commission (unemployment rate) CITY OF COLLEGE STATION, TEXAS DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN CALENDAR YEARS 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, 2005-2009. 147 2010 2000 Employer Employer Brazos County Brazos County Bryan ISD Bryan ISD City of Bryan City of Bryan City of College Station City of College Station College Station ISD College Station ISD Reynolds & Reynolds (1)Reliant Building Products Inc Sanderson Farms Inc Sanderson Farms Inc St Joseph Hospital St Joseph Hospital Texas A&M University Texas A&M University Wal-Mart Associates Inc Wal-Mart Associates Inc Source: Texas Workforce Commission, Labor Market/Career Information Department, Research Valley Partnership (1) Name change from Universial Computer Systems Notes: Data includes principal employers in Brazos County. Employers are listed in alphabetical order and do not reflect any ranking. The TWC ranking and number of employees data is confidential. PRINCIPAL AREA EMPLOYERS CURRENT YEAR AND TEN YEARS AGO CITY OF COLLEGE STATION, TEXAS 148 20012002 2003 2004 2005 2006 2007 2008 2009 2010Function/ProgramGeneral Government37.2 39.7 36.838.5 41.9 37.8 58.5 71.0 79.575.0Police139.4 140.3 143.4 146.0 144.4 155.1 163.5 168.5 176.0 169.0Fire98.1 103.9 105.9 108.5 111.4 110.6 119.0 125.0 121.0 118.0Public Works95.0 104.4 104.5 106.8 112.2 112.6 114.5 106.5 113.094.0Parks and Recreation111.3 115.4 120.1 116.2 120.0 119.8 123.5 131.0 133.0 133.0Planning and Development Services27.8 29.0 28.328.5 25.8 27.1 24.5 34.0 37.041.0Information Services39.2 39.1 40.040.3 37.5 36.6 28.5 33.0 32.030.5Fiscal Services54.3 53.1 61.159.8 64.2 70.1 71.0 72.5 70.570.0Electric57.1 57.5 56.953.4 56.6 56.0 56.5 58.0 65.064.0Water / Sewer Services64.6 66.2 66.064.0 69.1 71.8 71.0 67.5 76.570.5BVSWMA27.8 28.8 28.327.3 24.4 24.0 22.0 25.5 25.023.5Captial Projectn/an/an/an/an/an/an/a 10.0 10.09.0Total751.8 777.4 791.3 789.3 807.5 821.5 852.5 902.5 938.5 897.5Full-Time-Equivalent Employees as of Sept 30CITY OF COLLEGE STATION, TEXASFULL-TIME-EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAMLAST TEN FISCAL YEARSSource: 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 2008.149 2001200220032004200520062007200820092010Function/ProgramGeneral Government Open records requests 250 147 62 103 72 199 199 155 164 123 Economic development prospects 17 15 29 17 20 31 19 18 23 55 Code enforcement cases processed 4,209 4,525 6,280 9,341 2,848 5,984 4,838 5,148 6,248 5,268 Non-profit agencies/contracts monitored 8 12 11 10 9 13 7 10 9 10 Applicants receiving homebuyers assistance 12 25 14 16 2 9 6 3 4 6 Police DUI/DWI arrests 351 311 341 418 387 414 493 458 430 449 Citations processed 44,305 36,945 43,407 42,957 39,416 34,134 38,046 10,384 17,275 22,224 Uniform patrol calls handled 50,034 56,388 61,821 60,405 57,605 60,159 58,303 57,661 48,297 58,656 Average response time on high priority calls 5:53 mins 6:01 mins 6:28 mins 5:58 mins 6:09 mins 6:15 mins 6:17 mins 6.06 mins 6:18 mins 6:52 mins Criminal investigation new cases assigned 1,810 1,970 2,292 2,259 2,300 2,368 2,256 2,635 2,590 2,098 Note: In FY08 an e-citation program was implemented thus reducing the number of paper citations processed.Fire Fire incidents (fire, rescue, and haz mat) 1,603 1,653 1,455 1,554 1,792 1,743 1,832 1,992 2,008 2,301 Business safety inspections 1,128 900 1,014 1,410 1,138 828 1,018 947 760 1,364 EMS incidents2,704 2,554 2,754 2,800 3,241 3,048 3,773 4,7185,367 5,414 EMS unit responses4,428 4,568 4,687 4,900 4,930 5,276 5,476 5,3695,051 5,646 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 miles12 1 20 18 19 19 19 1592 Potholes repaired ****24,696 24,778 21,506 20,54618,000 68,548 *CITY OF COLLEGE STATION, TEXASOPERATING INDICATORS BY FUNCTION/PROGRAMLAST TEN FISCAL YEARS Curb miles swept****6,338 7,235 6,040 6,9555,620 5,595 Sign, marking, signal work orders2,562 2,709 3,472 3,270 2,898 2,557 2,617 2,8802,310 2,571 Note: In FY10 # of potholes repaired went to # of square feet repaired.Parks and Recreation Pavilion rentals340 353 342 314 221 399 338 395858 1,431 Adult participants in City leagues9,480 10,642 8,529 8,307 10,774 822 611 786786571 Youth participants in City leagues1,887 2,684 1,977 2,690 2,520 2,842 2,946 4,1834,249 4,096 Special event participants22,718 123,743 188,980 188,429 201,256 197,805 185,002 170,193184,575 199,091 Instructional participants3,148 3,546 3,447 3,581 3,579 3,075 3,432 3,5383,077 3,112 Pool customers119,329 130,113 142,154 145,879 132,549 146,805 128,206 142,605138,785 93,302 Conference center customers88,239 74,320 70,728 81,289 85,720 70,494 66,950 79,36090,089 90,540 Lincoln center participants67,665 68,919 72,794 81,629 82,624 98,869 100,952 93,50182,862 79,077 Teen center participants11,178 12,465 13,446 14,582 17,500 9,958 15,798 15,25917,212 15,669 Notes: FY01 special event participants do not include Christmas in the Park counts. Adult participants in City leagues was changed in FY06 to adult teams participating in City leagues. FY05 pavilion rentals had the following changes: Thomas Park pavilion rentals were removed (no longer charging a fee) and W.A. Tarrow basketball pavilion was added. In FY06 Crompton Park pavilion was added to rentals. FY09 Pavilion rentals now includes athletic field rentals. FY10 Pools closed one day a week and a new recording system for attendance was implemented.150 2001200220032004200520062007200820092010Function/ProgramPlanning and Development Services Permits processed * 6,728 6,604 6,685 6,500 6,575 7,583 6,647 5,819 5,972 Building inspections performed 11,046 14,671 13,364 13,435 13,297 13,069 13,398 13,814 12,938 12,379 Parking citations issued 12,324 18,500 18,034 16,587 11,900 8,452 7,238 9,460 9,686 6,763 Community enhancement cases 12,077 12,550 11,637 15,086 7,016 7,384 8,631 11,885 11,622 11,408 Note: FY09 Code Enforcement moved from Fire to Planning and Development ServicesElectric Number of connections 27,113 33,386 35,421 35,307 36,284 37,590 38,519 37,777 37,818 38,255 Residential job orders 1,825 1,942 2,505 2,134 1,904 1,422 1,714 2,342 1,242 1,627 Customer service job orders 2,079 2,144 2,078 2,496 1,561 1,678 1,717 1,928 1,774 1,428 Average monthly consumption (KWH) 51,409,703 52,466,218 54,820,470 55,673,526 60,413,524 61,910,063 60,766,805 64,724,128 64,065,679 65,049,732 Avg number of outages per customer 1.22 1.00 1.33 0.72 0.92 0.31 0.12 0.27 0.72 0.04 Water Number of connections 15,524 23,210 29,358 31,038 32,266 33,491 34,763 37,075 37,344 37,596 New services completed 1,289 1,440 1,560 1,217 773 931 1,027 1,235408 396 Average monthly consumption (MGW)295,875 262,541 253,259 236,355 283,429 317,438 293,246 324,012 345,170 301,399 Water meters tested893 950 1,025 768 732 1,254 1,174 732834 2,009 Avg number of outages per customer*0.190 0.003 0.160 0.016 0.039 0.013 0.0070.0067 0.0019 Sewer Number of connections*28,399 27,977 28,594 29,694 31,051 32,034 34,74334,743 35,853 Average daily sewage treatment6,158 6,669 6,807 6,808 6,220 5,911 6,502 6,6266,625 6,700 (thousands of gallons)CITY OF COLLEGE STATION, TEXASOPERATING INDICATORS BY FUNCTION/PROGRAM - ContinuedLAST TEN FISCAL YEARS New services completed1,139 1,400 1,540 890 571 646 521 781604 377 Avg number of stoppages per customer*0.015 0.0001 0.003 0.003 0.003 0.003 0.002 0.0007 0.00029 Sanitation Number of users (units)28,894 23,947 28,215 28,594 28,399 27,181 28,112 29,53330,750 30,779 Residential tons collected15,614 17,710 18,057 20,353 23,535 24,964 27,556 22,19121,406 28,451 Residential tons recycled978 941 826 1,082 923 983 1,060 1,1991,064 1,053 Commercial tons collected31,376 32,364 33,402 35,355 35,114 35,122 38,402 38,70936,245 36,558 Parking garage Active contract customers****449 432 472 464333 524 Hourly cash customers*65,612 106,935 97,904 127,608 108,893 109,028 107,584 104,342 85,210 Note: Parking garage opened to customers in February 2002.Utility Customer Service Payments processed379,439 388,579 404,742 408,348 401,891 413,088 423,299 443,766 461,557 467,262 Incoming calls79,747 79,514 82,018 82,536 82,234 85,728 85,842 97,12196,876 85,212 Meters read501,175 525,412 552,949 577,773 598,660 618,676 640,554 670,913694,270 708,672 Source: City of College Station various departments* Data not measured for fiscal year indicated.151 2001200220032004200520062007200820092010Function/ProgramPolice Patrol units 25 25 25 25 26 26 29 29 29 27 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) 711 711 733 353 385 395 429 438 428 453 Sidewalks (miles) 89 89 89 89 97 100 100 100 119 130 Traffic signals 55 57 60 62 62 62 65 66 66 69 Storm sewers (miles) * * * * * 72 72 72 80 83 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 1,146 1,134 1,214 1,217 1,248 1,274 1,289 1,306 1,306 1,327 Playunits 35 35 35 35 35 46 48 47 54 56 Softball/baseball fields 19 19 19 19 25 32 32 35 35 36 Soccer fields 13 19 19 19 26 31 31 29 29 30 Jogging/walking trails 20 20 22 22 26 27 28 2933 34 Community centers3 3 3 3 3 3 3 33 3 Pools3 3 3 3 3 3 3 33 3 Pavilions (rentable)5 5 5 5 6 6 7 76 Notes: Some parks have multiple playunits. Softball/baseball fields include practice fields.Electric()FISCAL YEARCITY OF COLLEGE STATION, TEXASCAPITAL ASSET STATISTICS BY FUNCTION/PROGRAMLAST TEN FISCAL YEARS Maximum capacity (megawatts)255 255 255 255 280 260 355 355355 305 Number of substations4 4 4 4 4 5 5 5 5 6 Distribution lines (miles)333 400 414 414 450 394 411 411 432 440 Water Water mains (miles)280 294 311 317 341 365 367 381 385 396 Fire hydrants***2,070 2,165 2,232 2,380 2,453 2,494 2562 Number of wells5 6 6 6 6 8 8 8 8 9 Wells storage capacity 20,000 19,000 26,000 26,000 28,000 23,000 23,000 23,000 26,000 32,000 (thousands of gallons per day)Sewer Sanitary sewer lines (miles)243 252 262 264 271 279 285 301 305 313 Treatment capacity 9,500 11,500 11,500 11,500 11,500 11,500 11,500 11,500 11,500 11,500 (thousands of gallons per day)Sanitation Collection trucks21 22 23 24 24 24 25 2525 25 Residential collection containers**14,413 15,207 15,958 16,647 18,135 19,54920,275 20,671 Commercial collection containers1,230 1,383 1,407 1,511 1,545 1,569 1,594 1,6191,644 1,669 Fleet number of vehicles**585 600 613 627 651 643647 662 Source: City of College Station* Data not measured for fiscal year indicated.152 153 154