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HomeMy WebLinkAboutFY 2012-2013 -- Comprehensive Annual Financial ReportCOMPREHENSIVE ANNUAL FINANCIAL REPORT for fiscal year ended September 30, 2013 City of College Station, Texas CITY OF COLLEGE STATION, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 PREPARED BY THE CITY OF COLLEGE STATION FISCAL SERVICES DEPARTMENT JEFF KERSTEN, ASSISTANT CITY MANAGER BUDGET & FINANCIAL REPORTING DIVISION CITY OF COLLEGE STATION, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 Table of Contents Page     INTRODUCTORY SECTION Letter of Transmittal ................................................................................................................................................................ 1 City Organization ..................................................................................................................................................................... 8 Principal City Officials ............................................................................................................................................................. 9 GFOA Certificate of Achievement for Excellence in Financial Reporting ............................................................................. 10 FINANCIAL SECTION Independent Auditors’ Report ............................................................................................................................................... 11 Management’s Discussion and Analysis (Unaudited) ....................................................................................................... 14 Basic Financial Statements: Government - Wide Financial Statements: Statement of Net Position ........................................................................................................................... 30 Statement of Activities ................................................................................................................................. 31 Fund Financial Statements: Balance Sheet – Governmental Funds ....................................................................................................... 32 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ................................................................................................................. 33 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds ................................................................................................... 34 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ................................................... 35 Statement of Net Position – Proprietary Funds .......................................................................................... 36 Statement of Revenues, Expenses, and Changes in Net Position – Proprietary Funds ............................................................................................................ 37 Statement of Cash Flows – Proprietary Funds ........................................................................................... 38 Notes to the Financial Statements ........................................................................................................................... 39 Required Supplementary Information: Schedule of Funding Progress – Texas Municipal Retirement System ................................................................... 69 CITY OF COLLEGE STATION, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 Table of Contents-continued Page Schedule of Funding Progress – City of College Station Employees Other Post Employment Benefits Plan ..................................................................................................................... 70 Schedule of Revenues, Expenditures, and Changes in Fund Balance, Budget and Actual – General Fund(s) ...................................................................................................... 71 Supplementary Information: Combining and Individual Fund Statements and Schedules: Combining Balance Sheet – General Fund(s) ........................................................................................... 73 Combining Statement of Revenues, Expenditures, and Changes In Fund Balance – General Fund(s) ........................................................................................................... 74 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual: General Fund(s): General Fund .................................................................................................................... 75 Economic Development Fund ........................................................................................... 76 Efficiency Time Payment Fund ......................................................................................... 77 Chimney Hill Fund ............................................................................................................. 78 Combining Balance Sheet – Nonmajor Governmental Funds .................................................................... 80 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance – Nonmajor Governmental Funds .................................................................................... 82 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual: Special Revenue Funds: Court Technology Fee Fund ............................................................................................. 84 Court Security Fee Fund ................................................................................................... 85 Juvenile Case Manager Fee Fund .................................................................................... 86 Police Seizure Fund .......................................................................................................... 87 Memorial Cemetery Fund ................................................................................................. 88 Memorial Cemetery Endowment Fund ............................................................................. 89 Texas Ave Cemetery Endowment Fund ........................................................................... 90 Hotel Tax Fund .................................................................................................................. 91 CITY OF COLLEGE STATION, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 Table of Contents-continued Page Community Development Fund………………………………………………………………..92 Wolf Pen Creek (WPC) TIF Fund ..................................................................................... 93 Parks Escrow Fund ........................................................................................................... 94 Drainage Utility Fund ........................................................................................................ 95 Recreation Fund................................................................................................................ 96 Capital Projects Funds: General Government Projects Fund ................................................................................. 97 Parks Projects Fund .......................................................................................................... 98 Debt Service Fund ......................................................................................................................... 99 Streets Projects Fund................................................................................................................... 100 Nonmajor Enterprise Funds: Combining Statement of Net Position ....................................................................................................... 102 Combining Statement of Revenues, Expenses, and Changes in Net Position ........................................................................................................................................... 103 Combining Statement of Cash Flows ........................................................................................................ 104 Internal Service Funds: Combining Statement of Net Position ....................................................................................................... 106 Combining Statement of Revenues, Expenses, and Changes in Net Position ........................................................................................................................................... 107 Combining Statement of Cash Flows ........................................................................................................ 108 STATISTICAL SECTION: Net Position by Component ................................................................................................................................... 110 Changes in Net Position ........................................................................................................................................ 111 Program Revenues by Function/Program .............................................................................................................. 113 Fund Balances, Governmental Funds ................................................................................................................... 114 Changes in Fund Balances, Governmental Funds ................................................................................................ 115 CITY OF COLLEGE STATION, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 Table of Contents-continued Page Tax Revenue by Source, Governmental Funds ...................................................................................................... 117 Assessed Value and Estimated Actual Value of Taxable Property ........................................................................ 118 Direct and Overlapping Property Tax Rates ........................................................................................................... 119 Principal Property Taxpayers ................................................................................................................................... 120 Property Tax Levies and Collections ...................................................................................................................... 121 Taxable Sales by Category ...................................................................................................................................... 122 Direct and Overlapping Sales Tax Rates ................................................................................................................. 123 Sales Tax Revenue Payers by Industry .................................................................................................................. 124 Outstanding Debt by Type ....................................................................................................................................... 125 Ratios of Net General Bonded Debt Outstanding ..................................................................................................... 126 Direct and Overlapping Governmental Activities Debt .............................................................................................. 127 Legal Debt Margin Information .................................................................................................................................. 128 Pledged-Revenue Coverage ..................................................................................................................................... 129 Demographic and Economic Statistics ..................................................................................................................... 130 Principal Area Employers .......................................................................................................................................... 131 Full-Time-Equivalent City Government Employees by Function/Program ............................................................... 132 Operating Indicators by Function/Program ................................................................................................................ 133 Capital Asset Statistics by Function/Program ............................................................................................................ 135 1 2 3 4 5 6 7 Ci ifCITY ORGANIZATIONAsof September 30, 2013Citizens of College StationMayor andCouncilCity ManagerExecutive Director DeputyDeputyPublic Executive DirectorCity AttorneyCity  SecretaryMunicipalJudgesInternal AuditorAppointed Boardsand CommissionsBusiness ServicespyCity ManagerpyCity ManagerCommunicationsDevelopment ServicesFire / EOCPolicePublic WorksWtSiPlanning & DevelopmentTFiscalServicesInformation TechnologyParks and RecreationHuman ResourcesWater ServicesElectric UtilityEconomic DevelopmentCommunity DevelopmentEngineeringCode fTreasuryBudgetPurchasingIntergovernmentRelationsTAMU, County, Bryan, CSISDDevelopmentLegislative AffairsEnforcementNeighborhood ServicesNorthgate DistrictUtility Customer ServicesAccountingDistrictMunicipal CourtStrategic Planning 8 City of College Station, Texas Fiscal Year 2013 September 30, 2013 Principal City Officials Elected Officials Mayor ....................................................................................................................................................................... Nancy Berry  City Council Place 1 ................................................................................................................................................ Blanche Brick  City Council Place 2 ..................................................................................................................................................... Jess Fields  City Council Place 3/Mayor Pro Tem ....................................................................................................................... Karl Mooney  City Council Place 4 ................................................................................................................................................. John Nichols  City Council Place 5 .................................................................................................................................................. Julie Schultz  City Council Place 6 ............................................................................................................................................. James Benham  City Administration Interim City Manager ............................................................................................................................................. Kathy Merrill  Deputy City Manager ....................................................................................................................................................... Vacant  Deputy City Manager ....................................................................................................................................................... Vacant  Executive Director, Business Services ...................................................................................................................... Jeff Kersten  Executive Director, Development Services .......................................................................................................... Bob Cowell, Jr.  Director of Public Communications .............................................................................................................................. Jay Socol  Director of Water Services Department ............................................................................................................. David Coleman  Director of Electric Utility .................................................................................................................................... Timothy Crabb  Chief of Police ........................................................................................................................................................ Jeffrey Capps  Interim Fire Chief .......................................................................................................................................................... Eric Hurt  Director of Public Works ..................................................................................................................................... Charles Gilman  Director of Parks and Recreation .......................................................................................................................... David Schmitz  Director of Information Technology .......................................................................................................................... Ben Roper   Director of Human Resources .................................................................................................................................. Alison Pond  City Attorney ....................................................................................................................................................... Carla Robinson  City Secretary .................................................................................................................................................. Sherry Mashburn  Internal Auditor ............................................................................................................................................................. Ty Elliott  9 10 Management’s Discussion and Analysis  For the Fiscal Year Ended September 30, 2013  (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, 2013. 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 and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the most recent Fiscal year by $438,675,077 (net position). Of this amount $77,812,508 (unrestricted net assets) may be used to meet the government’s ongoing obligations to citizens and creditors.  The City’s total net position increased by $16,824,965 during the fiscal year.  At the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $65,929,436 an increase of $3,187,007 when compared to the prior year.  Approximately 22.2 percent of the combined governmental funds ending fund balance, or $14,626,901 are available for spending at the City’s discretion (unassigned fund balance).  The City’s total amount of outstanding debt is $241,890,000 which is a net increase of $355,000 over last year. This increase is comprised of several factors: the issuance of general obligation improvement bonds and certificates of obligation for new projects; refunding of general obligation improvement bonds, certificates of obligation, and utility revenue bonds; and retirement of general obligation improvement bonds, certificates of obligation and utility revenue bonds. Details can be found in the notes to the financial statements. 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. 14 Management’s Discussion and Analysis  For the Fiscal Year Ended September 30, 2013  (Unaudited)        City of College Station, Texas  This report also contains other supplementary information in addition to the basic financial statements themselves. The following diagram illustrates the relationship between the different components of this report: Relationship Between Comprehensive Annual Financial Report (CAFR) and Basic Financial Statements and Required Supplementary Information (RSI) General information on the government structure, services, and environment Page 1-10 Management’s Discussion and Analysis Pages 14-29 Government-Wide Financial Statements Pages 30-31 Governmental Fund Financial Statements Pages 32-35 Proprietary Fund Financial Statements Pages 36-38 Notes to the Financial Statements Pages 39-68 Additional Required Supplementary Information Pages 69-71 Information on individual funds and other supplementary information not required by GAAP Pages 72-108 Trend Data and Non-financial Data Pages 110-135 Introductory  Section   Basic       Financial  Statements      And     RSI  Financial  Section Statistical  Section         15 Management’s Discussion and Analysis  For the Fiscal Year Ended September 30, 2013  (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 position presents information on all of the City’s assets and liabilities, and deferred inflows/outflows of resources with the differences reported as net position. Over time, increases or decreases in net position 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 position changed during the most recent fiscal year. All changes in net position 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, park 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 30-31. 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 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. 16 Management’s Discussion and Analysis  For the Fiscal Year Ended September 30, 2013  (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 nonmajor governmental funds is provided in the form of combining statements elsewhere in this report. The governmental fund financial statements can be found on pages 32- 35. 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 nonmajor enterprise funds. Individual fund data for the nonmajor 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 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 benefit both the governmental activities and the business-type activities and have been split between governmental activities and 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 36-38. 17 Management’s Discussion and Analysis  For the Fiscal Year Ended September 30, 2013  (Unaudited)        City of College Station, Texas  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. The notes to the financial statements can be found on pages 39-68. Required Supplementary Information In addition to the basic financial statements and accompanying notes, this report presents certain required supplementary information, found on pages 69-71, 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 nonmajor governmental funds, the nonmajor enterprise funds, and the internal service funds are found on pages 73-108. GOVERNMENT-WIDE FINANCIAL ANYALYSIS As noted earlier, net position may serve as a useful indicator of government’s financial position. For the City, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $438,675,077 at the close of the most recent fiscal year. The largest portion of the City’s net position (78.1 percent) reflects its investment of $342,529,731 in capital assets (e.g., land, buildings, and equipment) less any related outstanding debt used to acquire those assets. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be liquidated for these liabilities. Net Position Governmental Activities Business-Type Activities Total 2013 2012 2013 2012 2013 2012 Assets Current and other assets 92,398,592$ 86,482,799$ 88,070,772$ 85,818,899$ 180,469,364$ 172,301,698$ Capital assets 242,046,195 238,028,556 319,523,837 305,406,104 561,570,032 543,434,660 Total assets 334,444,787 324,511,355 407,594,609 391,225,003 742,039,396 715,736,358 Total deferred outflow of resources 1,430,043 - 1,733,009 - 3,163,052 - Liabilities Long-term liabilities outstanding 105,277,452 102,751,989 142,438,144 140,098,230 247,715,596 242,850,219 Other liabilities 19,666,305 19,211,970 39,145,470 31,824,059 58,811,775 51,036,029 Total liabilities 124,943,757 121,963,959 181,583,614 171,922,289 306,527,371 293,886,248 Net Position Invested in capital assets, net of related debt 153,214,549 149,875,513 189,315,182 179,123,899 342,529,731 328,999,412 Restricted 16,751,846 13,606,487 1,580,992 1,580,992 18,332,838 15,187,479 Unrestricted 40,964,678 39,065,396 36,847,830 38,597,823 77,812,508 77,663,219 Total net position 210,931,073$ 202,547,396$ 227,744,004$ 219,302,714$ 438,675,077$ 421,850,110$ 18 Management’s Discussion and Analysis  For the Fiscal Year Ended September 30, 2013  (Unaudited)        City of College Station, Texas  An additional portion of the City’s net position, $18,332,838 (4.2 percent) represents resources that are subject to external restriction on how they may be used. The remaining balance of unrestricted net assets, $77,812,508 (17.8 percent) may be used to meet the government’s ongoing obligations to citizens and creditors. At the end of the current fiscal year, the City was able to report positive balances in all three categories of net position, 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 position increased by $16,506,701 as a result of fiscal year 2013 operations, as compared to the increase of $14,510,522 for fiscal year 2012 operations. The year over year difference is mostly attributable to increases in sales and mixed beverage taxes. The following table provides a summary of the City’s operations for the year ended September 30, 2013 and highlights key elements of the change in the City’s net position: Changes in Net Position:Governmental Activities Business-Type Activities Total Revenues 2013 2012 2013 2012 2013 2012 Program revenues: Charges for services 11,869,339$ 12,288,801$ 134,519,144$ 134,113,489$ 146,388,483$ 146,402,290$ Operating grants and contributions 1,753,970 2,766,187 982 9,718 1,754,952 2,775,905 Capital grants and contributions 7,016,449 4,216,095 5,345,176 6,890,916 12,361,625 11,107,011 General revenues: Property taxes 26,451,943 24,978,388 - - 26,451,943 24,978,388 Sales and mixed beverage taxes 23,506,772 21,878,057 - - 23,506,772 21,878,057 Other taxes 6,602,958 5,815,164 - - 6,602,958 5,815,164 Interest and investment income 252,308 283,648 174,170 316,035 426,478 599,683 Total revenues 77,453,739 72,226,340 140,039,472 141,330,158 217,493,211 213,556,498 Expenses General government 9,167,476 8,348,922 - - 9,167,476 8,348,922 Fiscal services 3,263,269 3,313,726 - - 3,263,269 3,313,726 Police 16,831,233 16,696,975 - - 16,831,233 16,696,975 Fire 13,748,434 13,706,222 - - 13,748,434 13,706,222 Planning & development svcs 4,334,608 4,912,517 - - 4,334,608 4,912,517 Public works 15,371,773 13,717,564 - - 15,371,773 13,717,564 Capital projects 733,974 819,296 - - 733,974 819,296 Parks & recreation 8,983,919 9,638,581 - - 8,983,919 9,638,581 Library 1,064,293 1,142,580 - - 1,064,293 1,142,580 Information technology 4,565,385 4,268,524 - - 4,565,385 4,268,524 Interest on long term debt 2,949,240 3,273,938 - - 2,949,240 3,273,938 Unallocated depreciation 1,146,119 1,149,609 - - 1,146,119 1,149,609 Electric utility - - 88,438,115 87,221,859 88,438,115 87,221,859 Water utility - - 11,662,862 11,132,787 11,662,862 11,132,787 Wastew ater utility - - 11,370,918 10,952,853 11,370,918 10,952,853 Sanitation services - - 6,301,053 7,825,491 6,301,053 7,825,491 Parking operations - - 1,053,839 924,532 1,053,839 924,532 Total expenses 82,159,723 80,988,454 118,826,787 118,057,522 200,986,510 199,045,976 Incr (Decr) in net position before transfers (4,705,984) (8,762,114) 21,212,685 23,272,636 16,506,701 14,510,522 Transfers net 12,039,798 12,502,186 (12,039,798) (12,502,186) - - Increase in net position 7,333,814 3,740,072 9,172,887 10,770,450 16,506,701 14,510,522 Net position at beginning of year 202,547,398 198,807,326 219,302,714 211,861,677 421,850,112 410,669,003 Prior period adjustment 1,049,861 - (731,597) (3,329,413) 318,264 (3,329,413) Net position at end of year 210,931,073$ 202,547,398$227,744,004$219,302,714$438,675,077$ 421,850,112$ 19 Management’s Discussion and Analysis  For the Fiscal Year Ended September 30, 2013  (Unaudited)        City of College Station, Texas  Governmental Activities: Governmental activities increased the City of College Station’s net position by $7,333,814. Key elements of this net increase are as follows:  Sales and mixed beverage taxes increased 7.4% over the prior year reflecting continued recovery in the local economy. All of the other governmental activity revenues increased 7.2 % over the prior year.  Expenditures increased 1.5% over the prior year as a result of additional public safety funding in 2013. The chart below illustrates the City’s governmental activities revenues by source: This chart depicts governmental activity program revenues relative to program expenses: Property Taxes 34.2% Sales and  Mixed  Beverage  Tax 30.4% Other Taxes 8.5% Charges for  Services 15.3% Misc 11.6% Governmental Activities  Revenue By Source $77,453,739 ‐ 4,000,000  8,000,000  12,000,000  16,000,000  20,000,000  Gen'l Gov't Fiscal Svcs Police Fire Plan & Dev Public   Works Parks &  Rec Inform  Tech Other Governmental Activities  Program Revenue and Expense Revenue Expenses 20 Management’s Discussion and Analysis  For the Fiscal Year Ended September 30, 2013  (Unaudited)        City of College Station, Texas  Business-type Activities: Business-type activities increased the City of College Station’s net position by $9,172,887. Key elements of this increase are as follows:  The net effect of the utility service charges and associated costs, $3,827,711, were comparable to the prior year.  Capital infrastructure contributions from various developments throughout the City contributed $5,345,176 to the net position. Revenues for the City’s business-type activities are presented in the following chart: Another chart depicts business-type activity program revenues relative to program expenses: ‐ 20,000,000   40,000,000   60,000,000   80,000,000   100,000,000  Electric Water Wastewater Sanitation Parking Business ‐type Program Revenue and Expense Revenue Expenses 21 Management’s Discussion and Analysis  For the Fiscal Year Ended September 30, 2013  (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, unassigned 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 major 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 nonmajor funds. At of the end of the fiscal year 2013, the City’s governmental funds reported combined ending fund balances of $65,929,436. Approximately 22.2 percent ($14,626,901) 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 $ 6,727,238 Restricted $ 39,594,226 Committed $ 4,008,439 Assigned $ 972,632 A detailed breakdown of the fund balance can be found in Note IV. I. Components of Fund Balances. Revenues for governmental functions totaled $70,140,348 in fiscal year ended September 30, 2013, an increase of 1.3 percent or $892,099 from the fiscal year ended September 30, 2012. Expenditures for governmental functions totaling $88,444,236 decreased by approximately 3.4 percent or $3,138,596 from the fiscal year ended September 30, 2012. Other financing sources and uses (net) was $21,490,895. As a result, in fiscal year 2013, revenues for governmental functions exceeded expenditures by $3,187,007. 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 $14,626,901 while the total fund balance was $15,925,532. 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 26.2 percent of fiscal year 2013 amended budgeted expenditures and exceeds the minimum requirement set by policy. As a measure of fund’s liquidity, it is useful to compare both unassigned and total fund balance to total fund actual expenditures. Unassigned fund balance represents 23.0 percent of total general fund expenditures, while total fund balance represents 25.1 percent of total general fund expenditures. The total fund balance for the general fund continues to meet and exceed the Fiscal and Budgetary Policy of having 15 percent of expenditures available in fund balance. The General Fund’s fund balance decreased by $567,162 during the current fiscal year due primarily to an increase in public safety expenditures for police and fire. 22 Management’s Discussion and Analysis  For the Fiscal Year Ended September 30, 2013  (Unaudited)        City of College Station, Texas  The Debt Service Fund ended the fiscal year with a fund balance of $3,433,255. This entire amount is reserved for the payment of debt service. The net decrease in fund balance during the current fiscal year was $369,188. This decrease is due to the refunding of bonds during fiscal year 2013 that will reduce future debt service needs. Revenues received during the year were enough to cover principal retirements and interest payments. The Streets Projects Fund ended the fiscal year with a balance of $13,537,316. This entire amount is reserved for encumbrances related to current capital projects and for future capital projects. The net increase in fund balance during the current fiscal year was $1,422,394. This increase was attributable to bond proceeds that were issued during this fiscal year. 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 position of $227,744,004. Of this amount, 16.2 percent ($36,847,830) constitutes unrestricted net position. The remainder of net position for the proprietary funds, $190,896,174, is reported as follows:  Invested in capital assets, net related debt ($189,315,182), and  Restricted for debt service ($1,580,992). Operating revenues for proprietary activities totaled $134,217,124 for the fiscal year, an increase of 0.7 percent or $959,377 from the previous fiscal year. Operating expenses increased $1,567,080 or 1.4 percent for the same period. Operating income was $22,280,412 for the fiscal year. The proprietary funds reported net non-operating expenses of $7,286,491 at the end of fiscal year 2013 as compared to net non-operating expenses of $7,189,802 in the previous fiscal year. Also, the Proprietary Funds reported a prior period adjustment of $731,597 (see Note IV.G) resulting in an overall increase of $8,441,290 in net position for fiscal year 2013. Electric Fund At the end of the fiscal year, the unrestricted net position for the Electric Fund totaled $5,657,640. 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, 2013, Electric Fund working capital equaled approximately 20.1 percent of annual operating expenses, as compared to 18.2 percent at September 30, 2012. Electric Fund operating revenues decreased by 1.1 percent ($1,066,321) during fiscal year 2013, while operating expenses increased 1.0 percent ($870,587) during the same period. This resulted in operating income of $10,293,678. The operating income when combined with the net non-operating expenses, net capital contributions and transfers, and prior period adjustment of $301,740 (see Note IV.G) resulted in an increase in net position of $1,138,013 in the Electric Fund during the fiscal year. 23 Management’s Discussion and Analysis  For the Fiscal Year Ended September 30, 2013  (Unaudited)        City of College Station, Texas  Water Fund Unrestricted net position for the Water Fund at September 30, 2013 totaled $7,369,987. Water Fund operating revenues increased by 3.7 percent ($556,110) during fiscal year 2013. Operating expenses of $8,997,123 increased 6.3 percent ($535,584) over fiscal year 2012. This resulted in operating income of $6,615,302. The operating income when combined with the net non-operating expenses, net capital contributions and transfers, and prior period adjustment (see Note IV.G) resulted in an increase in net position of $4,639,068 in the Water Fund during the fiscal year. Wastewater Fund The Wastewater Fund’s unrestricted net position at the end of the fiscal year 2013 totaled $6,518,072. The Wastewater Fund ended the fiscal year with a working capital balance of $5,447,174 which was 43.7 percent lower than fiscal year 2012. Operating revenues in Wastewater Fund were $14,412,025 or $1,185,664 (9.0 percent) increase over the previous fiscal year. Operating expenses increased from $9,550,503 to $9,867,309 or 3.3 percent while operating income increased by 23.6 percent from $3,675,858 to $4,544,716. The operating income when combined with the net non-operating expenses, net capital contributions and transfers, and prior period adjustment (see Note IV.G) resulted in an increase in net position of $2,011,036 in the Wastewater Fund during the fiscal year. Budgetary Highlights The final amended budget for fiscal year 2013 totaled $258,401,586 for all funds. Of this amount $216,877,859 (83.9 percent) was budgeted for operations and maintenance expenditures and $41,523,727 (16.1 percent) was budgeted for capital improvement projects. In the General Fund the final amended budget showed a decrease in fund balance of $4,815,633. The actual change in fund balance was a decrease of $567,162. The following are some of the key factors in the change in fund balance:  Revenues were higher than the estimate due to modest increases in sales tax revenues.  Expenditures were overall lower due to reduced spending during the fiscal year. 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:  Good Governance  Financially Sustainable City  Providing Core Services and Infrastructure  Neighborhood Integrity  Diverse Growing Economy  Improving Mobility  Sustainable City Budget resources were included in the fiscal year 2013 to address these priorities. 24 Management’s Discussion and Analysis  For the Fiscal Year Ended September 30, 2013  (Unaudited)        City of College Station, Texas  CAPITAL ASSETS The City of College Station’s investment in capital assets for its governmental and business- type activities as of September 30, 2013 amounted to $561,570,032 (net of accumulated depreciation). This investment in capital assets includes land, utility systems, building and building improvements, improvements other than buildings, machinery and equipment, infrastructure, and construction in progress. Capital Assets at Year End Net of Accumulated Depreciation Major capital projects completed by the City during the 2013 fiscal year include the following: o Fire Station #6 o Electric – Underground duct system along Health Science Center Parkway o Electric – Overhead feeder extension along Wallace Phillips Parkway and Greens Prairie Road o Electric – Street light installations: Wellborn Road o Traffic Signal at Harvey and Copperfield o Wolf Pen Creek Festival Site o Barron Road Widening Phase II o University Drive Sidewalks o College Main Rehabilitation o Plantation Oaks Water Line o South Knoll/The Glade Water and Wastewater Rehabilitation Additional information on the City’s capital assets can be found in Note IV.C to the financial statements. Debt Administration At the end of the 2013 fiscal year, the City of College Station had total debt outstanding of $241,890,000. Of this amount, $207,125,000 (85.6 percent) is comprised of debt backed by the full faith and credit of the City. Certificates of Obligation that fund business-type activities in the Governmental Business‐Type Activities Activities Total Land 43,050,894$   690,750$          43,741,644$    Utility systems ‐                         275,448,443    275,448,443    Buildings and building improvements 30,824,561     4,050,026         34,874,587       Improvements other than buildings 20,350,656     ‐                          20,350,656       Machinery  and equipment 11,877,226     2,342,863         14,220,089       Infrastructure 125,791,042   ‐                          125,791,042    Construction in progress 10,151,816     36,991,755      47,143,571       242,046,195$ 319,523,837$  561,570,032$  25 Management’s Discussion and Analysis  For the Fiscal Year Ended September 30, 2013  (Unaudited)        City of College Station, Texas  Electric, Water, Wastewater and Northgate Parking Garage Funds are also backed by the surplus of revenue derived from each enterprise funds revenue source. The remaining debt $34,765,000 (14.4 percent), is revenue bonds secured by specified revenue sources from the City’s combined utility system.  Governmental   Activities  Business‐Type   Activities  Total   General  Obligation Bonds 79,710,000$      39,230,000$      118,940,000$     Certificates of  Obligation 17,160,000         71,025,000         88,185,000          Revenue  Bonds ‐                        34,765,000         34,765,000          96,870,000$      145,020,000$    241,890,000$     Year‐End Outstanding Debt Payable The City’s total debt increased by $355,000 (0.2 percent) during the current fiscal year. The change in total debt was a result of the following:  Issuance of $20,760,000 general obligation improvement bonds and refunding bonds.  Refunding of $12,640,000 general obligation improvement bonds, certificates of obligation, and utility revenue bonds.  Issuance of $10,230,000 in certificates of obligation, which funded business-type activities.  Retirement of $14,440,000 in general obligation improvement bonds and certificates of obligation, and the retirement of $3,555,000 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 Aa2 by Moody’s. Additional information on the City’s long-term debt can be found in Note IV.H to the financial statements. ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES Economic conditions were more positive than they have been in several years. Sales tax revenues growth has been stronger in the past year, and property values have increased as well. Growth has continued in the northern part of the City with construction taking place along the University Drive Corridor area. This includes the completion of a number of multi-family complexes and mixed use projects in the Northgate area, and ongoing construction of these projects. There also continues to be activity in the BioCorridor area. Growth also continues in the southern part of the City with the progress of new and expanded medical facilities including the opening of the Scott & White Hospital and associated medical building on Rock Prairie Road. There also continues to be retail development in the Tower Point area and other areas of the City. Two new Tax Reinvestment Zones have been established in the medical district area to help facilitate development in the district. Texas A&M University also continues to see significant growth and development. This includes the current redevelopment of Kyle Field, along with other initiatives including the long term increase in engineering students that has been announced. 26 Management’s Discussion and Analysis  For the Fiscal Year Ended September 30, 2013  (Unaudited)        City of College Station, Texas  The following are some key fiscal and economic indicators for College Station including:  The total certified value of property in the City of College Station for 2013 is $5,944,312,987. This is an increase over last year of 3.6%. This increase was due in part to new property values from new construction of $197,336,049 added to the tax rolls. Existing property values increased by approximately 1.5% in 2013.  Since 2009 taxable values have increased from approximately $3.3 billion to approximately $6.2 billion currently.  Through August 2013 the local unemployment rate was 5.6%. This is below the state average of 6.3% and the national average of 7.3%.  Sales and mixed drink beverage tax revenue, the largest revenue stream in the General Fund saw a healthy increase of 7.4% in fiscal year 2013. Preparation of the fiscal year 2014 budget was again a challenging budget to prepare, but it reflects the policy and strategic direction of this City Council. The budget was prepared in a conservative manner, given the reductions and efficiency improvements over the last several years. One of the considerations made when deciding whether to add or increase a service to the budget was whether the item had been reduced in the last year or two. The budget was prepared to give a new City Manager as much flexibility as possible in the implementation of Council policy direction, while still addressing the ability to provide key services to the citizens and visitors of College Station. Organizational Changes and Streamlining From FY09 through FY13, significant organization restructuring was implemented that led to budget reductions each year and elimination of a number of positions. These reductions provided resources that were utilized for public safety priorities during this time. There are additional changes being implemented in FY14, the result of continued review of the organization’s structure and services provided. The organizational changes in fiscal year 2014 include the elimination of 6.5 budgeted Full-Time Equivalent (FTE) positions. Within the Parks and Recreation Department, the 3 positions responsible for the operations of the Conference Center were eliminated with the only impact on the FY14 budget being the FTE count. A part-time Community Development Project Specialist was included for FY13 only, and was removed in FY14. Also, as part of the City’s continuing review of processes and cost savings, 3 positions were removed from the Cemetery operations, with the functions being outsourced with a current landscape service provider resulting in a net budget reduction of $52,217. All positions eliminated for fiscal year 2014 were vacant. Selected Increased Service Levels The following are some significant increases in service levels in the fiscal year 2014 budget. Core Services and Infrastructure – Police Department – To address the growth of the community the approved budget for the Police Department includes 4 new positions. These include an additional School Resource Officer, a Patrol Sergeant, a Crime Scene Technician and a Detention Officer. 27 Management’s Discussion and Analysis  For the Fiscal Year Ended September 30, 2013  (Unaudited)        City of College Station, Texas  Core Services and Infrastructure – Fire Department – The opening of Fire Station #6 in recent years resulted in the growth of an additional 18 positions. The approved budget for the Fire Department includes an additional position for the start of a Safety Officer program. The Safety Officer program will help to ensure the Fire Department personnel are kept as safe as possible. Core Services and Infrastructure - Public Works - Funds are approved in the Public Works budget for additional street rehabilitation, the replacement of facility roofs and building repairs that may be identified as part of the facility assessment review. The budget also includes an additional Facilities Maintenance Technician, and one Traffic Engineer position to assist the Traffic Division. Core Services and Infrastructure – Parks and Recreation – Funds are included in the Parks and Recreation budget for the improvement in various Park facilities including: court resurfacing, playground equipment replacement and resurfacing, replacement of various park amenities, and repairs to pavilion facilities. Neighborhood Integrity – Planning and Development Services - Funds are included in the budget for implementation of a portion of some of the neighborhood plans, as well as for the 5- year review of the comprehensive plan. In addition, a development of an Americans with Disabilities Act (ADA) transition plan and one part-time non-benefitted Code Enforcement Officer position was approved. Tax Rate The fiscal year 2014 budget was prepared using the effective tax rate of 42.5958 cents per $100 assessed valuation. This is a net decrease of 0.4729 cents from the fiscal year 2013 tax rate of 43.0687 cents. The fiscal year 2014 approved tax rate reduces the Debt Service portion of the tax rate by 0.2582, and reduces the General Fund portion of the tax rate by 0.2147 cents. Utility Rates The fiscal year 2014 budget does not include a rate increase in the Electric Fund, Water Fund, Wastewater Fund, Drainage Fund or residential sanitation rates. The budget includes a 15 percent rate increase in commercial rates in the Sanitation Fund. This rate increase is needed to provide the resources needed to provide Sanitation services to commercial customers. This is the first increase in commercial sanitation rates since 2006. Capital Improvements The fiscal year 2014 budget for capital improvements total $39,639,259. The City anticipates that capital project expenditures for general government, special revenue and utility capital projects will be significant. Infrastructure rehabilitation and improvement projects are also scheduled for fiscal year 2014. Projects underway include a number of street projects from 2008 bond authorizations, such as street rehabilitation and extension projects, facility projects and park projects. Some of the more significant upcoming capital projects are as follows: o Cooner Street Rehabilitation o Rock Prairie Road East Rehabilitation from Stonebrook Drive to W.D. Fitch Parkway o Luther Street Rehabilitation o Munson Street Rehabilitation o Barron Road East 28 Management’s Discussion and Analysis  For the Fiscal Year Ended September 30, 2013  (Unaudited)        City of College Station, Texas  o University Drive Pedestrian Improvements o Rock Prairie Road West Widening o Lincoln Center Addition o Library Expansion o Eastgate Water and Wastewater Rehabilitation o East Side FM 158 Sewer Line Project o Royder/Live Oak Sewer Line Project o Overhead Feeder up Wallace Phillips Parkway to Hwy 40 o Underground Feed from Northgate Substation to Church Street o Second Transformer at Dowling Road Substation The City plans to issue $7,415,000 in general obligation bonds from the 2008 authorization for the following: $4,100,000 for street and transportation improvements, $350,000 for traffic signals, $2,715,000 for parks and recreation projects and $250,000 for facility projects. The City also plans to issue $6,984,500 in certificates of obligations for the following: $4,330,000 for street and transportation improvements, and $2,654,500 for technology projects. The City also plans to issue $18,025,000 in long term debt for the following utility projects: $5,150,000 for electric capital projects, $5,525,000 for water capital projects and $7,350,000 for wastewater capital projects. In addition, a total of $6,850,000 in cash for the utility funds is projected to be used for capital projects in fiscal year 2014. REQUEST FOR INFORMATION This financial report is designed to provide a general overview of the City of College Station’s financial position for all who have an interest in the City’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to: City of College Station Fiscal Services Department ATTN: Assistant City Manager PO Box 9960 College Station, Texas 77840-9960 Or visit our website at http://www.cstx.gov/cafr 29 Governmental Activities Business-type Activities Total Assets Cash and cash equivalents 73,453,563$ 35,319,084$ 108,772,647$ Investments 9,620,245 4,666,293 14,286,538 Receivable (net of allow for uncollectible)6,676,824 19,334,337 26,011,161 Inventories 6,803,514 1,857,187 8,660,701 Internal balance (4,188,584) 4,188,584 - Prepaids 20,334 -20,334 Restricted assets - Cash and cash equivalents 11,214 5,085,306 5,096,520 Equity in investments 1,482 671,861 673,343 Equity in joint venture - 12,618,120 12,618,120 Loan receivable -4,330,000 4,330,000 Capital assets (net of accum depreciation)- Land and construction in progress 53,202,710 37,682,505 90,885,215 Other capital assets (net accum depreciation) 188,843,485 281,841,332 470,684,817 Total assets 334,444,787 407,594,609 742,039,396 Deferred outflows of resources Deferred charge on refunding 1,430,043 1,733,009 3,163,052 Total deferred outflows of resources 1,430,043 1,733,009 3,163,052 Liabilities and fund balances Accounts payable 4,906,326 22,495,389 27,401,715 Accrued liabilities 1,222,006 516,762 1,738,768 Retainage payable 211,054 729,180 940,234 Customer construction advances 729,211 11,121 740,332 Claims payable 1,641,547 - 1,641,547 CITY OF COLLEGE STATION, TEXAS Statement of Net Position September 30, 2013 py Unearned revenues 844,594 85,508 930,102 Compensated absences - current 199,556 45,411 244,967 Accrued interest payable 493,056 840,182 1,333,238 Refundable deposits 463,589 3,414,960 3,878,549 Current portion of long-term 8,955,366 11,006,957 19,962,323 Bonds and certificate of obligation payable 90,957,755 138,857,271 229,815,026 Compensated absences - long-term 2,447,572 556,966 3,004,538 Post employment benefits 6,296,011 1,617,702 7,913,713 Net pension obligation 5,576,114 1,406,205 6,982,319 Total liabilities 124,943,757 181,583,614 306,527,371 Net position Net investment in capital assets 153,214,549 189,315,182 342,529,731 Restricted for:- Debt service 5,953,242 1,580,992 7,534,234 Public safety 897,366 -897,366 Community development 1,617,691 - 1,617,691 Tourism 6,479,599 - 6,479,599 Capital projects 1,537,376 - 1,537,376 Other purposes 266,572 -266,572 Unrestricted 40,964,678 36,847,830 77,812,508 Total net position 210,931,073$ 227,744,004$ 438,675,077$ The notes to the financial statements are an integral part of this statement. 30 CITY OF COLLEGE STATION, TEXAS Statement of Activities For the Year Ended September 30, 2013 Program Revenues Net Revenue (Expense) and Operating Capital Changes in Net Position Charges for Grants and Grants and Governmental Business-type Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Governmental activities: General government 9,167,476$ 247,218$ 1,346,077$ -$ (7,574,181)$ -$ (7,574,181)$ Fiscal services 3,263,269 666,103 - - (2,597,166) - (2,597,166) Police 16,831,233 3,492,692 158,272 - (13,180,269) - (13,180,269) Fire 13,748,434 1,706,923 242,038 - (11,799,473) - (11,799,473) Planning & development svcs 4,334,608 1,493,021 - - (2,841,587) - (2,841,587) Public works 15,371,773 2,489,828 - 6,221,566 (6,660,379) - (6,660,379) Capital improvement program 733,974 - - - (733,974) - (733,974) Parks & recreation 8,983,919 1,773,554 7,583 794,883 (6,407,899) - (6,407,899) Library 1,064,293 - - - (1,064,293) - (1,064,293) Information technology 4,565,385 - - - (4,565,385) - (4,565,385) Interest on long-term debt 2,949,240 - - - (2,949,240) - (2,949,240) Unallocated depreciation 1,146,119 - - - (1,146,119) - (1,146,119) Total governmental activities 82,159,723 11,869,339 1,753,970 7,016,449 (61,519,965) - (61,519,965) Business-type activities: Electric 88,438,115 95,737,007 - 546,231 - 7,845,123 7,845,123 Water 11,662,862 15,775,334 - 3,392,208 - 7,504,680 7,504,680 Wastewater 11,370,918 14,566,975 - 1,379,638 - 4,575,695 4,575,695 Sanitation 6,301,053 7,205,029 982 27,099 - 932,057 932,057 Northgate parking 1,053,839 1,234,799 - - - 180,960 180,960 Total business-type activities 118,826,787 134,519,144 982 5,345,176 - 21,038,515 21,038,515 Total primary government 200,986,510$ 146,388,483$ 1,754,952$ 12,361,625$ (61,519,965) 21,038,515 (40,481,450) General revenue: Property taxes 26,451,943 - 26,451,943 Sales and mixed beverage taxes 23,506,772 - 23,506,772 Franchise taxes 2,209,091 - 2,209,091 Hotel occupancy taxes 4,393,867 - 4,393,867 Unrestricted investment earnings 252,308 174,170 426,478 Transfers 12,039,798 (12,039,798) - Total general revenues and transfers 68,853,779 (11,865,628) 56,988,151 Change in net position 7,333,814 9,172,887 16,506,701 Net position - beginning 202,547,398 219,302,714 421,850,112 Prior period adjustment 1,049,861 (731,597) 318,264 Net position - ending 210,931,073$ 227,744,004$ 438,675,077$ The notes to the financial statements are an integral part of this statement. 31 General Debt Service Street Projects Other Governmental Funds Total Governmental Funds Assets Current assets Cash and cash equivalents 15,597,312$ 3,032,594$ 13,461,458$ 22,512,031$ 54,603,395$ Equity in investments 2,060,689 400,661 1,778,503 2,889,943 7,129,796 Receivable (net of allow for uncollectible)4,009,810 464,268 373,512 1,885,387 6,732,977 Inventories 39,092 -- 6,667,812 6,706,904 Prepaid costs 20,334 ---20,334 Restricted assets Cash and cash equivalents 12,696 ---12,696 Total assets 21,739,933$ 3,897,523$ 15,613,473$ 33,955,173$ 75,206,102$ Liabilities Accounts payable 2,340,393$ -$ 1,580,490$ 518,607$ 4,439,490$ Accrued liabilities 1,128,999 --42,887 1,171,886 Unearned revenue-other 844,595 ---844,595 Interfund payable 240,000 ---240,000 Refundable deposits 81,498 -373,512 8,579 463,589 Retainage payable 6,169 -120,705 84,180 211,054 Customer construction advances 727,761 -1,450 -729,211 Total liabilities 5,369,415 -2,076,157 654,253 8,099,825 Deferred inflows of resources Unavailable revenue-loans receivable ---223,962 223,962 Unavailable revenue-property taxes 444,986 464,268 --909,254 Unavailable revenue-other ---43,625 43,625 Total deferred inflows of resources 444,986 464,268 -267,587 1,176,841 Fund balances Nonspendable 59,426 -- 6,667,812 6,727,238 Restricted 266,573 3,433,255 13,537,316 22,357,082 39,594,226 Committed --- 4,008,439 4,008,439 Assigned 972,632 ---972,632 Unassigned 14,626,901 --- 14,626,901 Total fund balances 15,925,532 3,433,255 13,537,316 33,033,333 65,929,436 Total liabilities, deferred inflows of resources and fund balances 21,739,933$ 3,897,523$ 15,613,473$ 33,955,173$ 75,206,102$ The notes to the financial statements are an integral part of this statement. CITY OF COLLEGE STATION, TEXAS Balance Sheet Governmental Funds September 30, 2013 32 CITY OF COLLEGE STATION, TEXAS Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position September 30, 2013 Total fund balance per balance sheet:65,929,436$ Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not financial resources, therefore are not reported in the governmental funds balance sheet 242,046,195 Debt refundings resulting in a defeasance of debt - the difference between the reacquisition price and the net carrying amount of the old debt - should be deferred and amortized 1,430,043 Long-term liabilities are not due and payable in the current period, therefore are not reported in the governmental funds balance sheet. Due within one year (9,146,103) Due in more than one year (104,554,846) (113,700,949) Interest payable on long-term debt does not require current financial resources and is not reported in the governmental funds balance sheet. (493,056) Allowance for potentially forgiven loans receivable (85,016) Other long-term assets are not available to pay for current period expenditures and, therefore, are reported as unavailable revenue in the funds 1,176,841 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 position (net of the amount allocated to business-type activities). Assets 29,601,377 Capital Assets (8,135,286) Liabilities (2,889,928) Net amount allocated to business-type activities (3,948,584) 14,627,579 Net position of governmental activities 210,931,073$ The notes to the financial statements are an integral part of this statement. 33 General Debt Service Street Projects Other Governmental Funds Total Governmental Funds Revenues Ad valorem taxes 13,938,602$ 11,604,087$ -$ -$ 25,542,689$ Sales taxes 23,064,035 - - - 23,064,035 Mixed drink and franchise 2,651,828 - - 4,393,867 7,045,695 Licenses and permits 1,238,967 - - 1,333 1,240,300 Intergovernmental 469,783 - 111,604 1,168,418 1,749,805 Charges for services 97,711 - 5,022 3,307,856 3,410,589 Other charges for services 2,507,808 - - - 2,507,808 Fines, forfeits, and penalties 3,252,418 - - 209,779 3,462,197 Investment income 88,198 22,183 49,307 92,620 252,308 Rents and royalties 650,407 - - 102,994 753,401 Contributions 56,990 - - 742,058 799,048 Other 212,349 - - 100,124 312,473 Total revenues 48,229,096 11,626,270 165,933 10,119,049 70,140,348 Expenditures Current General government 3,825,760 - - - 3,825,760 Fiscal services 2,970,342 - 1,965 232,897 3,205,204 Police 16,515,820 - - 34,291 16,550,111 Fire 13,297,527 - - - 13,297,527 Planning and development services 3,505,029 - - 763,825 4,268,854 Public works 6,519,248 - - 878,694 7,397,942 Capital improvement projects 733,974 - - - 733,974 Parks & recreation 4,463,535 - - 3,420,369 7,883,904 Information technology 4,271,209 - - - 4,271,209 Library 994,476 - - - 994,476 Contributions 1,086,012 - - 1,714,147 2,800,159 Other 1,300,627 - 300,000 363,529 1,964,156 Capital outlay - - 4,908,063 3,894,656 8,802,719 Debt service Principal retirement - 8,245,000 - - 8,245,000 Interest payments - 3,747,520 - - 3,747,520 Debt issuance costs - 154,660 - - 154,660 Intergovernmental - - 301,061 - 301,061 Total expenditures 59,483,559 12,147,180 5,511,089 11,302,408 88,444,236 Excess (deficit) of revenues over (under) expenditures (11,254,463) (520,910) (5,345,156) (1,183,359) (18,303,888) Other financing sources (uses) Issuance of bonds - - 6,525,000 2,725,000 9,250,000 Issuance of refunding bonds - 5,255,000 - - 5,255,000 Premium on bonds issued - 951,174 - - 951,174 Payment to refunded bond escrow agent - (6,054,452) - - (6,054,452) Transfers In 14,664,450 - 930,262 3,034,759 18,629,471 Transfers out (3,977,149) - (687,712) (1,875,437) (6,540,298) Total other financing sources (uses) 10,687,301 151,722 6,767,550 3,884,322 21,490,895 Net change in fund balance (567,162) (369,188) 1,422,394 2,700,963 3,187,007 Fund balances, October 1 16,492,694 3,802,443 12,114,922 30,332,370 62,742,429 Fund balances, September 30 15,925,532$ 3,433,255$ 13,537,316$ 33,033,333$ 65,929,436$ 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, 2013 34 Net change in fund balance - total governmental funds 3,187,007$ Amounts reported for governmental activities in the statement of activities differ as a result of the following: 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.9,684,235 Governmental funds do not recognize the total amount of revenue recognized in the government-wide statement of activities related to the sale of redevelopment home properties.138,946 The effect of various miscellaneous transactions involving capital assets (e.g., sales, trade ins, and capital contributions) is to increase/decrease net assets.6,221,566 Some property tax and loan 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. 1,422,536 Amortization of interest as the result of debt refundings is reported in the government-wide statement of activities but does not require the use of current financial resources. Therefore, amortized interest expense is not reported as an expenditure in governmental funds.(176,985) Depreciation expense on capital assets is reported in the government-wide statement of activities but does not require the use of current financial resources. Therefore, depreciation expense is not reported as an expenditure in governmental funds.(12,251,408) 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 position. 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 (14,505,000) Bond principal retirement 8,245,000 Payment to refunded bond escrow agent 6,054,452 (205,548) Bond premiums are recognized as an other financing source in the governmental funds, but are combined with the bond liabilities on the statement of net position. Premiums are amortized over the life of the bonds. This is the amount by which bond premium issued, and bond refunding losses exceeded amortization.(714,236) 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. Compensated absences (249,132) Net pension obligation (934,208) Other post retirement benefits (899,906) (2,083,246) 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. Change in net position 2,984,533 Net amount allocated to business activities (873,586) 2,110,947 Change in net position of governmental activities 7,333,814$ The notes to the financial statements are an integral part of this statement. CITY OF COLLEGE STATION, TEXAS Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Fiscal Year Ended September 30, 2013 35 Electric Water Wasterwater Other Enterprise Funds Total Enterprise Funds Internal Service Funds Assets Current assets Cash and cash equivalents 22,286,461$ 5,291,468$ 6,819,045$ 922,110$ 35,319,084$ 18,850,168$ Investments 2,944,447 699,099 900,920 121,827 4,666,293 2,490,449 Restricted assets Cash and cash equivalents 3,747,656 330,577 1,007,073 - 5,085,306 - Investments 495,133 43,675 133,053 -671,861 - Receivable (net of allow for uncollectible) 13,611,674 3,237,798 1,675,717 809,148 19,334,337 28,864 Due from other funds 40,000 40,000 40,000 -120,000 - Inventories 1,429,479 380,049 32,619 15,040 1,857,187 96,610 Total current assets 44,554,850 10,022,666 10,608,427 1,868,125 67,054,068 21,466,091 Noncurrent assets Advance to other funds 40,000 40,000 40,000 -120,000 - Equity in joint venture --- 12,618,120 12,618,120 - Loan receivable --- 4,330,000 4,330,000 - Capital assets Utility plant 162,535,495 160,106,661 123,876,162 - 446,518,318 654,518 Buildings --- 5,743,755 5,743,755 786,525 Machinery and equipment --- 5,590,795 5,590,795 23,248,806 Less accumulated depreciation (77,798,998) (47,560,123) (45,710,754) (4,941,661) (176,011,536) (16,554,563) Construction in progress 13,914,713 11,564,616 11,503,026 9,400 36,991,755 - Land ---690,750 690,750 - Total capital assets 98,651,210 124,111,154 89,668,434 7,093,039 319,523,837 8,135,286 Total noncurrent assets 98,691,210 124,151,154 89,708,434 24,041,159 336,591,957 8,135,286 Total assets 143,246,060 134,173,820 100,316,861 25,909,284 403,646,025 29,601,377 Deferred outflows of resources Deferred charge on refunding 550,145 653,320 462,478 67,066 1,733,009 - Total deferred outflows of resources 550,145 653,320 462,478 67,066 1,733,009 - Liabilities Current liabilities Accounts payable 19,960,983 936,313 1,240,452 357,641 22,495,389 466,836 Accrued liabilities 312,506 40,355 60,325 103,576 516,762 50,120 Compensated absences 19,611 7,082 11,117 7,601 45,411 8,819 Retainage payable 128,666 239,719 360,795 -729,180 - Claims payable ----- 1,641,547 Customer construction advances --11,121 -11,121 - Unearned revenue ---85,508 85,508 - Payable from restricted assets Accrued interest payable 323,210 269,972 222,081 24,919 840,182 - Refundable deposits 3,037,511 364,280 8,969 4,200 3,414,960 - General obligation bonds (net)1,074,267 1,205,910 1,690,972 398,174 4,369,323 - Certificates of obligation (net)1,659,069 707,542 505,840 230,000 3,102,451 - Revenue bonds (net)1,006,767 1,478,835 1,049,581 - 3,535,183 - Total current liabilities 27,522,590 5,250,008 5,161,253 1,211,619 39,145,470 2,167,322 Noncurrent liabilities General obligation bonds (net)11,060,893 13,845,505 11,905,066 1,920,870 38,732,334 - Certificates of obligation (net)37,711,225 14,460,834 12,402,329 4,100,000 68,674,388 - Revenue bonds (net)8,857,362 14,304,357 8,288,830 - 31,450,549 - Compensated absences 240,533 86,855 136,348 93,230 556,966 108,170 Post employment benefits 715,444 242,230 380,538 279,490 1,617,702 328,550 Net pension obligation 621,249 210,307 331,050 243,599 1,406,205 285,886 Total noncurrent liabilites 59,206,706 43,150,088 33,444,161 6,637,189 142,438,144 722,606 Total liabilities 86,729,296 48,400,096 38,605,414 7,848,808 181,583,614 2,889,928 Net position Net investment in capital assets 50,973,336 78,491,519 55,076,332 4,773,995 189,315,182 8,135,286 Restricted for: Debt service 435,933 565,538 579,521 - 1,580,992 - Unrestricted 5,657,640 7,369,987 6,518,072 13,353,547 32,899,246 18,576,163 Total net position 57,066,909$ 86,427,044$ 62,173,925$ 18,127,542$ 223,795,420$ 26,711,449$ Adjustment to reflect the consolidation of internal services fund activities related to enterprise funds:3,948,584 Net position of business-type activities:227,744,004$ The notes to the financial statements are an integral part of this statement. Business-type Activities-Enterprise Funds CITY OF COLLEGE STATION, TEXAS Statement of Net Position Proprietary Funds September 30, 2013 36 Governmental Activities Electric Water Wastewater Other Enterprise Funds Total Enterprise Funds Internal Service Funds Operating revenues Charges for services 92,892,541$ 14,849,299$ 14,168,809$ 8,614,272$ 130,524,921$ 6,783,604$ Premiums ----- 10,528,888 Other 2,664,368 763,126 243,216 21,493 3,692,203 341,915 Total operating revenues 95,556,909 15,612,425 14,412,025 8,635,765 134,217,124 17,654,407 Operating expenses Electric operations 79,338,595 --- 79,338,595 - Salaries and benefits - 1,952,617 3,107,689 2,498,486 7,558,792 2,487,689 Supplies - 654,507 715,580 637,606 2,007,693 922,533 Maintenance - 93,315 138,780 491,386 723,481 37,759 Purchased professional services - 240,955 181,230 797,790 1,219,975 220,525 Other purchased services - 1,578,315 1,423,352 2,599,940 5,601,607 768,583 Claims ----- 6,427,666 Administration fee ----- 516,742 Contributions ----- 539,530 Premiums ----- 1,362,570 Depreciation 5,127,808 4,247,778 4,232,206 753,975 14,361,767 1,710,288 Other 796,828 229,636 68,472 29,866 1,124,802 55,877 Total operating expenses 85,263,231 8,997,123 9,867,309 7,809,049 111,936,712 15,049,762 Operating income 10,293,678 6,615,302 4,544,716 826,716 22,280,412 2,604,645 Nonoperating revenues (expenses) Investment income 90,415 36,111 43,536 4,108 174,170 79,813 Gain (loss) on disposal of assets (10,342)(1) (12,282) (219,565) (242,190) 242,954 Earnings in joint venture --- 404,724 404,724 - Intergovernmental ---982 982 - Principal retirement ------ Interest expense (2,293,664) (2,076,900) (1,516,610) (85,562) (5,972,736)- Debt issuance costs (2,973) (2,317) (2,175)(235)(7,700)- Other, net (922,778) (538,018) (3,280) (179,665) (1,643,741) (44,852) Total nonoperating revenues (expenses)(3,139,342) (2,581,125) (1,490,811) (75,213) (7,286,491) 277,915 Income before capital contributions and transfers 7,154,336 4,034,177 3,053,905 751,503 14,993,921 2,882,560 Capital contributions and transfers Capital contributions 546,231 3,392,208 1,379,638 27,099 5,345,176 151,348 Transfers in 721,980 19,185 30,815 227,252 999,232 288,570 Transfers out (6,982,794) (2,517,294) (2,255,782) (1,283,160) (13,039,030) (337,945) Total capital contributions and transfers (5,714,583) 894,099 (845,329) (1,028,809) (6,694,622) 101,973 Change in net position 1,439,753 4,928,276 2,208,576 (277,306) 8,299,299 2,984,533 Beginning net position 55,928,896 81,787,976 60,162,889 18,347,956 23,726,916 Prior period adjustment (301,740) (289,208) (197,540)56,891 (731,597) Ending net position 57,066,909$ 86,427,044$ 62,173,925$ 18,127,541$ 26,711,449$ Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds:873,588 Change in net position of business-type activities:8,441,290$ The notes to the financial statements are an integral part of this statement. CITY OF COLLEGE STATION, TEXAS Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds For the Fiscal Year Ended September 30, 2013 Business-type Activities - Enterprise Funds 37 Governmental Activities Other Total Internal Enterprise Enterprise Service Electric Water Wastewater Funds Funds Funds Cash flows from operating activities: Cash received from customers 95,858,049$ 15,108,054$ 14,558,767$ 8,753,922$ 134,278,792$ 17,666,879$ Cash payments to suppliers for goods and services (69,915,940) (2,538,664) (1,554,612) (4,494,871) (78,504,087) (10,922,041) Cash payments to employees for services (5,372,675) (1,843,315) (2,954,166) (2,381,684) (12,551,840) (2,367,337) Customer deposits received 534,562 (3,546) 4,377 - 535,393 - Cash paid for miscellaneous services (781,415) (405,350) - (181,987) (1,368,752) (6,347) Cash received for miscellaneous revenues - - 163,412 982 164,394 (38,505) Net cash provided (used) by operating activities 20,322,581 10,317,179 10,217,778 1,696,362 42,553,900 4,332,649 Cash flows from noncapital financing activities: Transfers in from other funds 721,980 19,185 30,815 227,252 999,232 - Transfers out to other funds (6,982,794) (2,517,294) (2,255,782) (1,283,160) (13,039,030) (49,375) Net cash provided (used) by noncapital financing activities (6,260,814) (2,498,109) (2,224,967) (1,055,908) (12,039,798) (49,375) Cash flows from capital and related financing activities: Acquisition and construction of capital assets (10,645,094) (9,010,123) (9,767,537) (47,169) (29,469,923) (1,730,651) Capital grants and contributions 546,231 3,392,208 1,379,638 27,099 5,345,176 151,348 Proceeds from sale of assets - - - 500 500 242,954 Proceeds from certificates of obligation and general obligation bonds 8,907,206 6,610 2,025,568 - 10,939,384 - Principal paid on certificates of obligation and general obligation bonds (3,153,297) (3,063,464) (2,923,241) (414,528) (9,554,530) - Interest paid on certificates of obligation and general obligation bonds (2,218,518) (2,025,228) (1,450,045) (79,740) (5,773,531) - Net cash provided (used) by capital and related financing activities (6,563,472) (10,699,997) (10,735,617) (513,838) (28,512,924) (1,336,349) Cash flows from investing activities: Purchase of investments (7,336,459) (1,626,136) (2,251,886) (261,140) (11,475,620) (5,335,037) Proceeds from sale and maturities of investment securities 6,671,895 2,051,144 2,683,640 255,108 11,661,786 5,166,785 Investment income 90,415 36,111 43,536 4,108 174,170 79,813 Net cash provided (used) by investing activities (574,149) 461,119 475,290 (1,924) 360,336 (88,439) Net increase (decrease) in cash and cash equivalents 6,924,146 (2,419,808) (2,267,516) 124,692 2,361,514 2,858,486 Cash and cash equivalents, Oct. 1 19,109,971 8,041,853 10,093,634 797,418 38,042,876 15,991,682 Cash and cash equivalents, Sept. 30 26,034,117$ 5,622,045$ 7,826,118$ 922,110$ 40,404,390$ 18,850,168$ Reconciliation of operating income to net cash Provided by operating activities: Operating income 10,293,678$ 6,615,302$ 4,544,716$ 826,716$ 22,280,412$ 2,604,645$ Adjustment to reconcile operating income to net Cash provided (used) by operating activities: Depreciation, bad debt expense, inventory loss 5,127,808 4,247,778 4,232,206 753,975 14,361,767 1,710,289 Miscellaneous nonoperating revenues - - 163,412 982 164,394 (38,505) Miscellaneous nonoperating expenses (781,415) (405,350) - (181,987) (1,368,752) (6,347) Changes in assets and liabilities: Change in accounts receivable 301,140 (504,371) 146,742 123,783 67,294 12,472 Change in inventory 55,800 33,468 697 2,269 92,234 (12,313) Change in accounts payable 4,484,939 231,063 983,184 61,666 5,760,852 (184,209) Change in refundable deposits 534,562 (3,546) 4,377 - 535,393 - Change in claims payable - - - - - 125,637 Change in accrued liabilities (11,228) (1,260) (6,595) 4,685 (14,398) 4,785 Change in deferred revenue - - - (5,626) (5,626) - Change in accrued vacation 55,815 18,672 12,173 6,523 93,183 8,292 Change in OPEB 128,296 41,912 67,153 50,721 288,082 52,943 Change in net pension obligation 133,186 43,511 69,713 52,655 299,065 54,960 Total adjustments 10,028,903 3,701,877 5,673,062 869,646 20,273,488 1,728,004 Net cash provided (used) by operating activities 20,322,581$ 10,317,179$ 10,217,778$ 1,696,362$ 42,553,900$ 4,332,649$ Noncash investing, capital, and financing activities Impact of debt refunding (see note: IV.H) Change in certificates of obligation 600,000 - - - 600,000 - Change in utility revenue bonds (2,630,000) (3,610,000) (500,000) - (6,740,000) - The notes to the financial statements are an integral part of this statement. CITY OF COLLEGE STATION, TEXAS Statement of Cash Flows Proprietary Funds For the Fiscal Year Ended September 30, 2013 Business-type Activities - Enterprise Funds 38 Notes to the Financial Statements  For the Fiscal Year Ended September 30, 2013        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 as 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. B. Government-Wide and Fund Financial Statements The government-wide financial statements (e.g., the statement of net position and the statement of activities) report information on all of the activities of the City. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses for a given function or segment is 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 programs 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. 39 Notes to the Financial Statements  For the Fiscal Year Ended September 30, 2013        City of College Station, Texas  C. Measurement Focus, Basis of Accounting and Financial Statement Presentation Measurement focus refers to the type of information a given fund presents; 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 focuses 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 position and the operating statements present increases (revenues) and decreases (expenses) in total net position. 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 measureable and available only when the City receives cash. The City reports the following major governmental funds: The General Fund is the City’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. All general tax revenues and other receipts that are not restricted by law or contractual agreement to some other fund are accounted for in this fund. General operating expenditures, fixed charges and capital improvement costs that are not paid through other funds are paid from the General Fund. The Debt Service Fund accounts for the financial resources 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 from principal and interest in future years are also reported in the Debt Service Fund. The Streets 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 services. 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 operation and maintenance, new construction, and financing and related debt services. Billing and collection services are accounted for as an internal service fund. 40 Notes to the Financial Statements  For the Fiscal Year Ended September 30, 2013        City of College Station, Texas  The Wastewater Fund accounts for the activities necessary to provide wastewater services to the residents of the City. These activities include administrative services, wastewater system operation and maintenance, new construction, and financing and related debt services. 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 collections; 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 internal fund activity has been eliminated from the government-wide financial statements. Exceptions to this rule are payments-in-lieu of taxes, indirect costs and franchise fees, and other charges between the City’s Electric, Water, and Wastewater Funds because elimination of these charges would distort the direct costs and program revenues reported in the Statement of Activities. Amounts reported as program revenues include (1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Proprietary funds distinguish operation 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 operation revenues of the City’s enterprise funds are charges for customer services including electric, water, wastewater, and sanitation fees; while internal service funds revenues are for equipment purchase amounts and risk management charges. Operating expenses for enterprise fund and internal services 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 Position 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, investments pools, money market mutual funds, certificates of deposit 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 pooled cash are 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. 41 Notes to the Financial Statements  For the Fiscal Year Ended September 30, 2013        City of College Station, Texas  Investments Investments are made in accordance with the City’s Investment Policy which was adopted by the City Council in October 2012 for the fiscal year ending September 30, 2013. This policy is applicable to all city funds and permits investment in obligations of 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 Executive Director of Business Services shall designate the City’s Investment Officer with whom responsibility and authority for investment transactions reside. The investments purchased under the provisions of the Investment Policy are managed to maintain liquidity for meeting the City’s needs for cash and to limit potential market risks in periods of rising interest rates which depress the market value of securities. As a guideline, maturity of securities should not exceed five years for cash management purposes, with an optimum weighted average maturity of less than two years. Investments in securities with a maturity of more than two years are considered prudent for funds maintained for capital construction and debt service funds, if necessary to meet projected disbursement schedules. As a general guideline, the City’s cash management portfolio is designed with the objective of meeting, over the course of full market cycles, the average return on three-month U.S. Treasury bills, or the average rate of federal funds, whichever is higher. These indices are considered benchmarks for riskless investment transactions and therefore comprise a standard for the portfolio’s rate of return. The investment program seeks to augment rates of return above this level. In a diversified portfolio, measured losses are inevitable and must be considered within the context of the overall portfolio. The objective of investment in construction funds should at least 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 differences in relative yield between different types of securities and varying maturities. “Swaps” analysis is the responsibility of the City’s Investment Officer and the decision to execute the “swap” rests with this designated Officer. 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 versus payment and held in the City’s name in a safekeeping account at The Bank of New York. Investments of all funds may consist of Agency securities, money market mutual funds, certificates of deposit and investments in 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. In 2011, the City adopted GASB No.59, Financial Instruments Omnibus. See Note IV-A regarding 2a7- like 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. 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 costs determined using an average cost method. 42 Notes to the Financial Statements  For the Fiscal Year Ended September 30, 2013        City of College Station, Texas  Assets held for resale include redevelopment properties, properties purchased and constructed with the express intent of resale. These assets are reported at cost in the governmental funds. Cemetery plots are another example of assets held for resale in the governmental funds. City ordinance stipulates the percentage of 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 accounted for using the purchases method. Payments made to vendors for services that will benefit periods beyond September 30, 2013, are recorded as prepaid costs with a reserve for prepaid items recognized in the governmental funds in the fund level financial statements to indicate that a portion of fund balance is not available for other subsequent expenditures. Interfund Transaction 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 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 obligations, 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. 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 include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items) and are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of three years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. Assets owned by the electric utility are capitalized in accordance with Federal Energy Regulatory Commission (FERC) guidelines. Furthermore, assets owned by either the Water or Wastewater utilities are capitalized in accordance with the National Association of Regulatory Utility Commissioners (NARUC) guidelines. The costs of normal maintenance and repairs that do not add to the value of the assets 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 ASC 980 Regulated Operations, 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 43 Notes to the Financial Statements  For the Fiscal Year Ended September 30, 2013        City of College Station, Texas  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. Changes in compensated absences for the year ending September 30, 2013 were as follows: Internal service funds predominantly serve the governmental funds. All internal service funds are included as part of the above totals for governmental activities. All of the Utility Customer Service Fund and a portion of the remaining internal service funds are included in the Business-type Activities on the Statement of Net Position. For the governmental activities, accrued vacation is generally liquidated by the general fund. 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 position. Bond premiums and discounts 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 refunding. Bond issuance costs, with the exception of bond insurance are expensed in the period incurred. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Fund Equity In the fund financial statements, governmental funds report fund balance classifications that comprise a hierarchy based primarily on the specific purposes for which amounts in those funds can be spent. In the fiscal year ended September 30, 2009, the City adopted the Governmental Accounting Standards Board Statement (GASBS) number 54, “Fund Balance Reporting and Governmental Fund Type Definitions.” GASBS 54 provides for and the City uses the following classifications: Nonspendable Fund Balance includes amounts that cannot be spent because they are not in spendable form. The “not in spendable form” criterion includes items that are not expected to be converted to cash, for example, inventories and prepaid amounts. It also includes the long-term amount of loans receivable as well as property acquired for resale. Beginning Balance Earned Paid Total Ending Balance Amount Due Within One Year Amount Due Greater than One Year Governmental Activities 2,458,456$ 374,015$ (185,343)$ 2,647,128$ 199,556$ 2,447,572$ Business-type Activities 509,194 131,571 (38,388) 602,377 45,411 556,966 Total Comp. Absences 2,967,650$ 505,586$ (223,731)$ 3,249,505$ 244,967$ 3,004,538$ 44 Notes to the Financial Statements  For the Fiscal Year Ended September 30, 2013        City of College Station, Texas  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 limitations imposed by the government’s highest level of decision-making authority. The City Council is the highest level of decision making-authority for the government that can, by approval of a resolution prior to the end of the fiscal year, commit fund balance. Once adopted, the limitation imposed by the resolution remains in place until a similar action is taken (the approval of another resolution) to remove or revise the limitation. 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. The governing body, the City Council, has authorized the Assistant City Manager to assign fund balance. Assignments, unlike commitments are not permanent and a formal action is not required for the removal of an assignment. Finally, 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 nor 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. When fund balances are available for use and the usage requirements met, the City reduces the committed amounts first, followed by the assigned amounts and then the unassigned amount lastly. 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. E. Budgetary Control The City follows these procedures in establishing budgetary data: 1. Prior to September 1, City Manager submits to City Council a proposed operating budget for the upcoming fiscal year beginning 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 & Financial Reporting and then presented with comparative and supporting data to the Mayor and City Council for review. 3. Public hearings are properly advertised and conducted at City Hall for taxpayer comments. 4. Prior to September 27, the budget is legally enacted through passage of an ordinance. 5. The City Council must approve all transfers of budgeted amounts between departments within any fund and any revision that alters the total expenditures of any fund. An amount is also budgeted each year for contingencies which may arise. The Council has authorized the City Manager to make budget transfers for contingencies if the amount does not exceed $15,000. All other transfers must be approved by City Council. Departments 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 without Council approval. 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. 45 Notes to the Financial Statements  For the Fiscal Year Ended September 30, 2013        City of College Station, Texas  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. 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 expenditures. 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. III. Stewardship, Compliance, and Accountability A. Budgetary Information The Council approved three budget amendments during fiscal year 2013. These three budget amendments included the following appropriations: 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 lapse at the end of the budget year if they have not been expended or lawfully encumbered. 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 assignments of fund balances and do not constitute expenditures or liabilities. Brazos Valley Bowl 25,000 Sanitation Vehicle Replacement 610,000 Encumbrance Roll 1,311,270 Veterans Park Synthetic Fields 617,400 Economic Development Funding 105,000 Hotel Tax Auditing Services 15,000 Replacement of Police Department (PD) Vehicle 44,000 Sponsorship of COCS 75th Anniversary 28,900 One-time Budgetary Savings Distribution 577,516 Grants PD Personnel & Equipment Needs 451,781 Fire Prevention & Safety Grant 7,816 Workers' Compensation Claims 325,000 Bullet Proof Vest Program 15,615 Public Works Security Upgrade 66,959 Council Chamber Upgrade 18,094 Royder Road Repair 100,000 Enterprise Resource Planning Consulting 151,419 Game Day Traffic Study 50,000 PD Overage 93,000 Fire Dept. Overage 270,000 Fleet Maintenance Overage 110,000 4,993,770$ 46 Notes to the Financial Statements  For the Fiscal Year Ended September 30, 2013        City of College Station, Texas  B. Excess of Expenditures over Appropriations The amounts of any excesses of expenditures over appropriations during fiscal year 2013 and the funds in which they occurred are as follows: 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. 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 2011 and the Texas Public Collateral Act of 1989. These investments include the following: 1. Direct obligations of the United States government: U.S. Treasury Bills, U.S. Treasury Notes, and U.S. Treasury Bonds as well as Bonds or other interest bearing obligations for which the principal and interest are guaranteed by the full faith and credit of the United States government and rated not less than A or its equivalent by at least one nationally recognized investment rating firm. 2. Federal Agencies and Instrumentalities including but not limited to, discount notes, callables and debentures of the Federal National Mortgage Association (FNMA), the Federal Home Loan Bank (FHLB), the Federal Farm Credit Bank (FFCB), and the Federal Home Loan Mortgage Corporation (FHLMC). Fund Amount Debt Service Fund 111,125$ Court Security Fee Fund 2,149 Weighted  Average Fair Value Maturity(days) Bank Demand Accounts 58,093,887$    1 Money  Market  Accounts 20,440,462       1 Certificates of Deposits 15,044,256       311 Texas  Local  Government Investment Pool 35,250,443       1 128,829,048$   Portfolio Weighted Average Maturity 37 47 Notes to the Financial Statements  For the Fiscal Year Ended September 30, 2013        City of College Station, Texas  3. Time Certificates of Deposit, insured by the Federal Deposit Insurance Corporation (FDIC) or its successor, or the National Credit Union Share Insurance Fund or its successor, in state or national banks. Any deposits exceeding FDIC insurance limits shall be collateralized at 102% of the face amount of the Certificate of Deposit by securities listed in 1 - 2 above and held by the City's custodial bank or the custodial bank of the institution the CD’s are held. Bids for Certificates of Deposit may be solicited orally, in writing, electronically or using any combination of these methods. 4. Repurchase Agreements with a defined termination date of 90 days or less collateralized by a combination of cash and securities listed in 1 - 2 above. Collateral must have a minimum market value of 102% of the repurchase agreement, and must be held by the custodian bank or other independent third-party custodian contracted by the City. Bond proceeds may be invested in flexible repurchase agreements with maturity dates not exceeding the expected final project expenditure if a formal bidding process is followed and properly documented for IRS purposes. 5. Commercial Paper maturing within 180 days carrying a minimum rating not less than A-1 or P-1 or equivalent by two nationally recognized rating agencies, or; rated not less than A-1 or P-1 equivalent by one nationally recognized rating agency plus secured by an irrevocable letter of credit issued by a domestic bank. 6. AAA rated Money Market Mutual Funds registered with the Securities and Exchange Commission that invest exclusively in investments described in this section. 7. AAA-rated Investment Pools organized under the Texas Interlocal Cooperation Act that follow the requirements in the Public Funds Investment Act and which have been specifically approved by the City. The City is a voluntary participant in two external investment pools, Texpool and TexSTAR. The pools are 2a7-like pools, which are not registered with the Securities and Exchange Commission (SEC) as an investment company, but have a policy that it will, and does, operate in a manner consistent with the SEC’s Rule 2a7 of the Investment Company Act of 1940. This type of pool uses amortized investment costs rather than market values to compute participant share values. Furthermore, the pools in which the City participates seek to maintain a stable $1 net asset value per share of unit. Accordingly, the fair value of the City’s position in these pools is substantially the same as the market value of the shares in each of the pools. As of September 30, 2013, the City’s investments in Texpool and TexSTAR were rated by Standard & Poor's as AAAm. 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 30%. As of September 30, 2013, the issuers whose securities represented more than 5% of the City's investment portfolio were as follows: American Momentum Bank (12%) and Citibank (16%). 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%. The City’s depository bank collateralizes the city’s funds at 110%. 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. 48 Notes to the Financial Statements  For the Fiscal Year Ended September 30, 2013        City of College Station, Texas  B. Receivables Receivables as of year-end for the City's individual major funds and non major and internal service funds in the aggregate, including the applicable allowances for uncollectible accounts, are as follows: Loans Receivable in the non-major governmental funds are made up of the following: a $500,000, 40-year loan of HOME Investment Partnership (HOME) funds for Santour Court, an affordable, single-family residential development; $445,250 in HOME down-payment assistance loans for eligible HOME participants whose loans are made with Federal funds from the Department of Housing and Urban Development (HUD); two Community Development Housing Reconstruction Program Lien Notes held by the City which total to $226,998. Loans Receivable in the non-major 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: Governmental funds report unearned revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. As of fiscal year end, the unearned revenue reported in the governmental funds related to emergency services was $844,595. Debt Street Internal Governmental activities: General Service Projects Nonmajor Service Fund Total Taxes: Property 444,985$ 464,268$ -$ -$ -$ 909,253$ Beverage 121,152 - - - - 121,152 Sales 2,055,812 - - - - 2,055,812 Subtotal taxes 2,621,949 464,268 - - - 3,086,217 Grants - - - 438,380 - 438,380 Charges for services 1,416,781 - 373,512 366,020 52,284 2,208,597 Loans - - - 1,172,248 - 1,172,248 Miscellaneous 23 - - - - 23 Total gross governmental 4,038,753 464,268 373,512 1,976,648 52,284 6,905,465 Less allowance for uncollectible accounts (28,943) - - (176,278) (23,420) (228,641) Net total receivables 4,009,810$ 464,268$ 373,512$ 1,800,370$ 28,864$ 6,676,824$ Internal Business-type activities: Electric Water Wastewater Nonmajor Service Fund Total Charges for services 15,373,510$ 3,348,367$ 1,890,126$ 927,026$ -$ 21,539,029$ Less allowance for uncollectible accounts (1,761,836) (110,569) (214,409) (117,878) - (2,204,692) Net total receivables 13,611,674$ 3,237,798$ 1,675,717$ 809,148$ -$ 19,334,337$ Year Ended September 30 Principal Interest 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 4,330,000$ 1,628,299$ Due from Related Party 49 Notes to the Financial Statements  For the Fiscal Year Ended September 30, 2013        City of College Station, Texas  C. Capital Assets Capital asset activity for the year ended September 30, 2013 was as follows: Beginning Ending Governmental Activities Balance Increases Decreases Adjustments Balance Capital Assets, not being depreciated Land 43,050,894$ -$ -$ -$ 43,050,894$ Construction in progress 17,076,500 24,611 (6,949,295) - 10,151,816 Total capital assets not being depreciated 60,127,394 24,611 (6,949,295) - 53,202,710 Capital assets, being depreciated Buildings and building improvements 36,356,612 6,858,106 (41,275) - 43,173,443 Improvements other than buildings 36,699,242 1,076,308 - - 37,775,550 Machinery and equipment 36,615,395 2,338,225 (1,574,486) - 37,379,134 Infrastructure 240,379,096 14,325,416 - - 254,704,512 Total capital assets, being depreciated 350,050,345 24,598,055 (1,615,761) - 373,032,639 Less accumulated depreciation for: Buildings and building improvements 11,152,062 1,196,820 - - 12,348,882 Improvements other than buildings 15,645,646 1,779,248 - - 17,424,894 Machinery and equipment 24,066,717 3,014,034 (1,578,843) - 25,501,908 Infrastructure 120,941,876 7,971,594 - - 128,913,470 Total accumulated depreciation 171,806,301 13,961,696 (1,578,843) - 184,189,154 Total capital assets being depreciated, net 178,244,044 10,636,359 (36,918) - 188,843,485 Governmental type activities capital assets, net 238,371,438$ 10,660,970$ (6,986,213)$ -$ 242,046,195$ Beginning Ending Business-Type Activities Balance Increases Decreases Adjustments Balance Capital assets, not being depreciated Land 690,750$ -$ -$ -$ 690,750$ Construction in progress 20,430,326 24,176,251 (7,614,822) 36,991,755 Total capital assets, not being depreciated 21,121,076 24,176,251 (7,614,822) - 37,682,505 Capital assets, being depreciated Electric system 157,449,053 5,289,915 (203,473) - 162,535,495 Water system 156,083,898 4,091,119 (68,356) - 160,106,661 Wastewater system 121,531,887 3,002,628 (658,353) - 123,876,162 Buildings and building improvements 5,743,755 - - - 5,743,755 Machinery and equipment 6,385,530 61,215 (649,950) (206,000) 5,590,795 Total capital assets, being depreciated 447,194,123 12,444,877 (1,580,132) (206,000) 457,852,868 Less accumulated depreciation for: Electric system 72,983,313 5,127,808 (737,322) 425,199 77,798,998 Water system 43,332,703 4,247,778 (369,933) 349,575 47,560,123 Wastewater system 42,112,390 4,232,206 (996,567) 362,725 45,710,754 Buildings and building improvements 1,570,074 147,097 (23,442) - 1,693,729 Machinery and equipment 3,253,496 606,877 (612,441) - 3,247,932 Total accumulated depreciation 163,251,976 14,361,767 (2,739,706) 1,137,499 176,011,536 Total capital assets,being depreciated, net 283,942,147 (1,916,890) 1,159,574 (1,343,499) 281,841,332 Business type activities capital assets, net 305,063,223$ 22,259,361$ (6,455,248)$ (1,343,499)$ 319,523,837$ 50 Notes to the Financial Statements  For the Fiscal Year Ended September 30, 2013        City of College Station, Texas  Depreciation expense for fiscal year 2013 was charged as follows: D. Interfund Transactions Transfers between funds during the year were as follows: 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 utility transfer in lieu of franchise fees, (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. General Government 805,497$ Fiscal Services 602,568 Police 3,274,259 Fire 2,612,928 Planning and Development Services 720,058 Public Works 1,317,170 Parks and Recreation 1,406,133 Library 200,977 Non-departmental 1,311,818 Capital Assets held by Internal Service Fund 1,710,288 Governmental Activities Depreciation Expense 13,961,696 Electric 5,127,808 Water 4,247,778 Wastewater 4,232,206 Sanitation 483,126 Northgate Parking 270,849 Business-Type Depreciation Expense 14,361,767$ Transfers In Transfers Out Governmental Activities, net Business-type Activities, net Governmental Activities: General Fund 14,664,450$ (3,977,149)$ 10,687,301$ - Debt Service Fund - - - - Streets Projects 930,262 (687,712) 242,550 - Other Nonmajor Governmental Funds 3,034,759 (1,875,437) 1,159,322 - Internal Service Funds 288,570 (337,945) (49,375) - Business-type Activities: Enterprise Funds: Electric 721,980 (6,982,794) - (6,260,814) Water 19,185 (2,517,294) - (2,498,109) Wastewater 30,815 (2,255,782) - (2,224,967) Other Nonmajor Enterprise Funds 227,252 (1,283,160) - (1,055,908) 19,917,273$ (19,917,273)$ 12,039,798$ (12,039,798)$ 51 Notes to the Financial Statements  For the Fiscal Year Ended September 30, 2013        City of College Station, Texas  The composition of due to/due from balances as of September 30, 2013 is as follows: 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, however, with the pending sale of the property, the repayments were deferred to FY14. E. Operating Leases 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. As of September 30, 2013, the building carried a net value of $2,776,315 and $308,480 in accumulated depreciation. The building at Chimney Hill was partially leased to private businesses when the City acquired the property. At September 30, 2013, one space is being rented on a month-to-month basis to Western Beverage. Two other spaces have leases as follows: Amount 40,000$ 40,000 40,000 Amount 40,000$ 40,000 40,000 Economic Development Economic Development Economic Development Water Fund Wastewater Electric Fund Business-type Activities: Governmental Activities: Advance From Advance To Water Fund Wastewater Electric Fund Due To Due From Economic Development Economic Development Economic Development Year Ended September 30, Republic DaVita Total 2013 103,731 256,791 360,522 2014 108,375 226,212 334,587 2015 111,624 94,255 205,879 2016 114,976 - 114,976 2017 68,229 - 68,229 506,935$ 577,258$ 1,084,193$ Operating Leases 52 Notes to the Financial Statements  For the Fiscal Year Ended September 30, 2013        City of College Station, Texas  F. Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. For the period ended September 30, 2013, the City reported $3,163,052 in charges on debt refunding as deferred outflow of resources. These charges are reported on the government wide Statement of Net Position and will be amortized over the life of the refunding debt. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has only one type of item, which arises only under a modified accrual basis of accounting, which qualifies for reporting in this category. Accordingly the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from the following sources: These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. G. Prior Period Adjustment For the period ending September 30, 2013 the City has chosen early implementation of Statement No. 65 of the Governmental Accounting Standards Board (GASB). Statement No. 65 establishes new treatment for debt issuance costs and charges related to debt refunding. Prior to GASB No. 65 implementation the City would capitalize/defer and subsequently amortize all debt issuance costs over the life of the related bond(s). GASB No. 65 requires that all debt issuance costs, with the sole exception of any prepaid insurance costs, be recognized in the period incurred, and the removal of all existing capitalized/deferred charges (net of accumulated amortization) from the City’s government wide Statement of Net Position. These amounts, net of accumulated amortization expense, have been recognized in FY2013 and are included in the City’s government wide Statement of Activities as a prior period adjustment to beginning fund balance. The adjustment is an expense in the amount of $1,367,007. Of this amount, $(557,167) is related to Governmental Activities, and $(809,840) to Business-type Activities. Also, prior to implementing GASB No. 65, the City would defer the interest charges associated with debt refunding and would net this with the debt liability on the Statement of Net Position. GASB No. 65 requires that the difference between the reacquisition price and the net carrying amount of the old debt be deferred and amortized as a component of interest expense over the remaining life of the old debt or new debt whichever is shorter. The Statement of Net Position contains a prior period adjustment to beginning fund balance. The adjustment to the Governmental Activities is $1,607,028 and the adjustment to the Business-type Activities is $78,243. Unavailable Unearned Total Property tax 909,254$ -$ 909,254$ Loans Receivable 223,962 - 223,962 Other-Cemetary Plot Loans Receivable 43,625 - 43,625 1,176,841$ -$ 1,176,841$ 53 Notes to the Financial Statements  For the Fiscal Year Ended September 30, 2013        City of College Station, Texas  H. Long-Term Debt The City elected to implement GASB Statement 65 for fiscal year 2013. A summary of long-term debt transactions, including current portion, for the year ended September 30, 2013 follows: Due to the implementation of GASB No. 63 and 65, deferred loss from refunding transactions of $1,665,943 has been reclassified from a liability to a deferred outflow of resources and is no longer presented in the long-term debt table presented above. Internal service funds predominantly serve the governmental funds. All internal service funds, except for the utility customer service fund, are included as part of the above totals for governmental activities. Long-term debt at September 30, 2013 includes the following individual issues (not including unamortized premiums or discounts): Amounts Beginning Incurred/ Matured/ Ending Due Within Balance Issued Retired Balance One Year Governmental activities: General obligation bonds 75,695,000$ 14,505,000$ 10,490,000$ 79,710,000$ 7,290,000$ Certificates of obligation 20,815,000 - 3,655,000 17,160,000 1,360,000 Premium/discount 2,328,886 951,174 236,939 3,043,121 305,366 Governmental activity Long term debt 98,838,886$ 15,456,174$ 14,381,939$ 99,913,121$ 8,955,366$ Business type activities: General obligation bonds 36,280,000$ 6,255,000$ 3,305,000 39,230,000$ 3,965,000$ Certificates of obligation 63,685,000 10,230,000 2,890,000 71,025,000 3,055,000 Utility revenue bonds 45,060,000 - 10,295,000 34,765,000 3,480,000 Premium/discount 2,788,486 632,326 242,527 3,178,285 297,344 Business type activity Long term debt 147,813,486$ 17,117,326$ 16,732,527$ 148,198,285$ 10,797,344$ 54 Notes to the Financial Statements  For the Fiscal Year Ended September 30, 2013        City of College Station, Texas  Interest Issue Maturity Original Net Rate (%) Date Date Issue Retirement Outstanding General Obligation Bonds: 2003 Issue 3.00-4.50 7/1/03 2/15/23 4,790,000$ 4,790,000$ -$ 2004 Issue 2.875-5.00 5/1/04 2/15/24 12,940,000 12,940,000 - 2005 Issue 4.00-6.00 5/1/05 2/15/25 5,710,000 5,480,000 230,000 2006 Issue 4.375-6.375 7/1/06 2/15/26 7,375,000 2,200,000 5,175,000 2006 Issue - Refunding 4.00-5.00 12/1/06 2/15/18 10,255,000 3,680,000 6,575,000 2007 Issue 4.25-6.25 9/1/07 2/15/27 3,930,000 1,635,000 2,295,000 2008 Issue 4.0 - 5.0 9/1/08 2/15/28 9,455,000 2,455,000 7,000,000 2009 Issue 3.5 - 4.0 7/15/09 2/15/21 3,335,000 430,000 2,905,000 2009 Issue - Refunding 2.00-4.00 11/15/09 2/15/20 4,265,000 1,695,000 2,570,000 2010 Issue 2.00-3.50 8/15/10 2/15/30 19,635,000 2,320,000 17,315,000 2010 Issue - Refunding .30-5.0% 11/15/10 2/15/22 11,245,000 1,740,000 9,505,000 2011 Issue .25-1.6% 9/15/11 2/15/18 1,960,000 930,000 1,030,000 2012 Issue & Refunding 2.0-5.0% 6/1/12 2/15/32 11,515,000 910,000 10,605,000 2013 Issue & Refunding 2.0-5.0% 8/15/13 2/15/33 14,505,000 - 14,505,000 120,915,000$ 41,205,000$ 79,710,000$ General Obligation Bonds - Business-type Activities: 2009 Issue - Refunding 2.00-4.00 11/15/09 2/15/20 3,830,000$ 1,530,000$ 2,300,000$ 2010 Issue - Refunding .30-5.0% 11/15/10 2/15/22 25,905,000 3,990,000 21,915,000 2012 Issue & Refunding 2.0-5.0% 6/1/12 2/15/32 9,570,000 810,000 8,760,000 2013 Issue & Refunding 2.0-5.0% 8/15/13 2/15/33 6,255,000 - 6,255,000 45,560,000$ 6,330,000$ 39,230,000$ Total General Obligation Bonds 166,475,000$ 47,535,000$ 118,940,000$ Certificates of Obligation - Governmental Activities: 2003A Issue 2.90-4.20 7/1/03 2/15/23 780,000$ 780,000$ -$ 2005 Issue 3.00-4.50 5/1/05 2/15/25 7,595,000 7,380,000 215,000 2006 Issue 4.375-6.375 7/1/06 2/15/26 8,325,000 2,865,000 5,460,000 2007 Issue 4.25-6.25 9/1/07 2/15/27 3,960,000 1,650,000 2,310,000 2008 Issue 3.25 - 5.0 9/1/08 2/15/28 22,855,000 15,080,000 7,775,000 2009 Issue 3.00-5.00 7/15/09 2/15/29 5,880,000 4,795,000 1,085,000 2010 Issue 2.00-3.50 8/15/10 2/15/30 1,050,000 735,000 315,000 50,445,000$ 33,285,000$ 17,160,000$ Certificates of Obligation - Business-type Activities: 2004 Issue 2.875-5.00 5/1/04 2/15/24 8,915,000$ 8,915,000$ -$ 2008 Issue 3.25 - 5.0 9/1/08 2/15/28 15,925,000 2,690,000 13,235,000 2009 Issue 3.00-5.00 7/15/09 2/15/29 30,580,000 8,875,000 21,705,000 2010 Issue 2.00-3.50 8/15/10 2/15/30 2,850,000 295,000 2,555,000 2011 Issue 2.00-3.60 9/15/11 2/15/31 7,920,000 545,000 7,375,000 2012 Issue 2.0-5.0% 6/1/12 2/15/32 16,415,000 490,000 15,925,000 2013 Issue 2.0-5.0% 8/15/13 2/15/33 10,230,000 - 10,230,000 92,835,000$ 21,810,000$ 71,025,000$ Total Certificates of Obligation 143,280,000$ 55,095,000$ 88,185,000$ Utility Revenue Bonds: 2003A Issue 2.50-4.25 7/1/03 2/1/23 4,850,000$ 4,850,000$ -$ 2005 Issue 4.00-5.50 5/1/05 2/1/25 8,035,000 7,680,000 355,000 2005A Issue - Refunding 3.00-5.25 8/1/05 2/1/18 12,995,000 6,485,000 6,510,000 2006 Issue 4.375-6.375 7/1/06 2/1/26 16,950,000 3,965,000 12,985,000 2007 Issue 4.00-5.75 9/1/07 2/1/27 18,665,000 3,750,000 14,915,000 61,495,000$ 26,730,000$ 34,765,000$ Total Outstanding Bonds 241,890,000$ 55 Notes to the Financial Statements  For the Fiscal Year Ended September 30, 2013        City of College Station, Texas  The annual requirements to amortize debt outstanding as of September 30, 2013 are as follows: The City intends to retire all of its general long-term liabilities, plus interest, from ad valorem taxes. Proprietary fund type long-term debt issued for Northgate Parking Garage, Electric, Water and Wastewater projects will be repaid, plus interest, from the operating revenues their respective funds. General Obligation Bonds and Certificates of Obligation 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, 2013. On July 23, 2013 the City issued $20,760,000 General Obligation Improvement and Refunding Bonds, Series 2013. The refunded bonds were an advanced refunding of General Obligation Improvement General Obligation Certificates of Obligation Year Ended September 30,Principal Interest Principal Interest 2014 7,290,000$ 2,991,110$ 1,360,000$ 716,688$ 2015 6,505,000 2,760,441 1,195,000 666,547 2016 6,345,000 2,526,335 1,235,000 616,932 2017 6,655,000 2,277,596 1,020,000 569,091 2018 5,915,000 2,031,856 950,000 527,441 2019-2023 23,155,000 7,059,921 5,555,000 1,967,769 2024-2028 17,205,000 2,831,491 5,800,000 608,364 2029-2033 6,640,000 465,511 45,000 1,035 79,710,000$ 22,944,261$ 17,160,000$ 5,673,867$ General Obligation Certificates of Obligation Utility Rev enue Year Ended September 30, Principal Interest Principal Interest Principal Interest 2014 3,965,000$ 1,587,861$ 3,055,000$ 2,631,766$ 3,480,000$ 1,516,255$ 2015 4,040,000 1,449,900 3,180,000 2,542,993 2,930,000 1,353,080 2016 4,205,000 1,290,350 3,335,000 2,436,549 3,075,000 1,207,182 2017 4,370,000 1,104,399 3,190,000 2,329,030 2,985,000 1,068,745 2018 4,150,000 909,988 3,360,000 2,217,586 2,460,000 948,304 2019-2023 16,730,000 1,964,575 19,265,000 9,098,334 10,545,000 3,364,199 2024-2028 1,770,000 75,000 24,095,000 4,907,270 9,290,000 785,606 2029-2033 - - 11,545,000 922,720 - - 39,230,000$ 8,382,073$ 71,025,000$ 27,086,248$ 34,765,000$ 10,243,371$ Business-Type Activities Governmental Activities 56 Notes to the Financial Statements  For the Fiscal Year Ended September 30, 2013        City of College Station, Texas  Bonds, Series 2005; Certificates of Obligation, Series 2005; and a portion of Utility Revenue Refunding Bonds, Series 2005A and Utility Revenue Bonds, Series 2005 and was undertaken to reduce total general obligation and utility revenue debt service payments over the next 12 years by $888,025 resulting in net present value savings of $730,017. The true interest cost of the General Obligation and Refunding Bonds is 2.867177%. The refunding of the bonds resulted in a $271,050 difference between the reacquisition price and the net carrying amount of the old debt, which is shown as a deferred outflow on the Statement of Net Position. Proceeds of $9,020,000 from the sale of the bonds will be used to pay for (1) costs of construction, acquisition of and improvements to City streets; (2) parks and parks facilities improvements, and (3) pay the costs incurred in connection with the issuance of the bonds. The City issued $10,230,000 in Certificates of Obligation, dated July 23, 2013, with a true interest cost of 3.899803%. The proceeds from the sale of the Certificates will be used to pay for (1) construction of improvements to the City’s combined electric, waterworks and wastewater systems and (2) to pay costs incurred in connection with the issuance of the Certificates. In 2009, the City issued $31,315,000 in Certificates of Obligation. $2,600,000 of the proceeds was used to purchase land for a convention center site. Council no longer intends to build a convention center, therefore, causing a change in use to the property. In order to maintain the tax exempt status of the 2009 Certificates of Obligation, Council approved to defease the convention center bonds on November 21, 2011. On December 1, 2011 the bonds were defeased. $2,728,149 was placed in an escrow account with Bank of New York to cover the principal and interest amount of the bonds until their call date of February 15, 2019. Also, in 2009, the City issued $5,145,000 in Certificates of Obligation to pay for a portion of the construction of a new municipal landfill. The City of College Station jointly owns Brazos Valley Solid Waste Management Agency Inc. (BVSWMA, Inc.) with the City of Bryan. BVSWMA Inc. has pledged to repay the $5,145,000 plus interest to the City of College Station. As of September 30, 2013 BVSWMA Inc. owed the City $4,330,000. 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, 2013, the City did not have an arbitrage rebate liability. 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 retired until the call dates have come due or until maturity if they are not callable issues. On September 30, 2013, the City’s escrow balance for bonds defeased on December 1, 2011 was $2,361,288. The defeased bonds 57 Notes to the Financial Statements  For the Fiscal Year Ended September 30, 2013        City of College Station, Texas  are not callable until February 15, 2018. The escrow balance for bonds defeased on July 23, 2013 was $12,880,654. The defeased bonds are not callable until February 1, 2014 and February 15, 2014. I. Components of Fund Balance Fund balances for governmental funds at September 30, 2013 are as follows: V. Other Information A. Property Taxes Property tax is levied each October 1 on the assessed (appraised) value listed as of the prior January 1 for all real and business personal property located in the City. Taxable assessed value represents the appraisal value less applicable exemptions authorized by the City Council. Taxes are due October 1 and are delinquent after the following January 31. Tax liens are automatic and become enforceable as of January 1 of each year. Taxes become delinquent February 1 and are subject to interest and penalty charges. The tax rate to finance general governmental services including debt service was 43.0687 cents per $100 of assessed valuation for the year ended September 30, 2013. 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 $100 valuation. The Brazos County Appraisal District ("Appraisal District") is responsible for the recording and appraisal of property for all taxing units in Brazos County. The Appraisal District is required to assess property at 100 percent of its appraised value. Real property must be reappraised at least every three years. The City General Debt Service Streets Projects Other Total Fund balances: Nonspendable: Inventories 59,426$ -$ -$ 6,667,812$ 6,727,238$ Restricted for: Community and Neighborhood Parks - - - 3,757,561 3,757,561 Community Development - - - 1,617,691 1,617,691 Court Security Fee - - - 71,142 71,142 Court Technology Fee - - - 432,530 432,530 Debt Service - 3,433,255 - - 3,433,255 Drainage - - - 2,954,750 2,954,750 Educational and Governmental Access fee 266,573 - - - 266,573 General Government Capital Projects - 13,537,316 1,984,192 15,521,508 Hotel Occupancy Tax - - - 6,479,599 6,479,599 Juvenile Case Manager - - - 311,991 311,991 Parks and Recreation Capital Projects - - - 3,414,144 3,414,144 Police Seizure - - - 81,703 81,703 Wolf Pen Creek TIF - - - 1,251,779 1,251,779 Committed to: College Station Cemetery Perpetual Care - - - 1,779,694 1,779,694 Memorial Cemetery - - - 1,565,221 1,565,221 Mem orial Cemetery Perpetual Care - - - 663,524 663,524 Assigned: Encumbrances 972,632 - - - 972,632 Unassigned 14,626,901 - - - 14,626,901 15,925,532$ 3,433,255$ 13,537,316$ 33,033,333$ 65,929,436$ 58 Notes to the Financial Statements  For the Fiscal Year Ended September 30, 2013        City of College Station, Texas  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 faces many risks. These risks generally can be divided 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 from these exposures. The City is self-insured for health benefits, and the plan is administered by Blue Cross Blue Shield of Texas. This activity is accounted for in the Employee Benefits Fund, which is funded monthly from employee contributions and City operating funds. 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 the City’s liability to $150,000 per individual per year, with an aggregate attachment point for the last 12 months of $7,464,041. The liability for outstanding losses includes $959,723 for claims incurred but not reported as of September 30, 2013. In fiscal year 2013, 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 self-insures all liability coverage lines. Licensed adjusters in the City’s Risk Management office process liability claims with assistance from Abercrombie, Simmons & Gillette (AS&G), a Third Party Administrator, which also handles the City’s Workers' Compensation claims. In the event of a simultaneous liability and Workers' Compensation claim, only one SIR (self-insured retention) applies. To further protect the City from catastrophic loss, the City carries excess liability and Workers’ Compensation coverage through Star Insurance Company; A.M. Best rated B++, financial category X. The self-insured retention ("SIR") for 2013 was $250,000 per claim. Liabilities in the property and casualty fund and the Workers’ Compensation fund are reported to the carrier when it is probable a covered 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 $425,458 in the property and casualty fund and a potential liability of $256,366 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 re-evaluated periodically to accommodate the effects of inflation, recent claim settlement trends (including frequency and amount of pay-outs), and other economic and social factors. Settlements have not exceeded self-insured retention in each of the past three fiscal years. As a reimbursing employer, the City uses the Unemployment Fund to pay qualified 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. 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 it is probable a liability has been incurred at the date of the financial statements and if the amount of the loss can be reasonably estimated. 59 Notes to the Financial Statements  For the Fiscal Year Ended September 30, 2013        City of College Station, Texas  These liabilities include an estimate for incurred but not reported claims. Changes in the balances of claims liabilities for the self-insurance funds accounted for as Internal Service Funds for fiscal years 2013 and 2012 are as follows: C. Joint Venture In 1990 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 reported 50% ownership in BVSWMA. The City of College Station served as landfill operator. This basic structure is how BVSWMA operated until 2010. In February 2010 the City Councils for the City of Bryan and the City of College Station approved Articles of Incorporation for BVSWMA, Inc. a Local Government Corporation under the provisions of Subchapter D of Chapter 431, Texas Transportation Code; and Chapter 394, Texas Local Government Code. In March 2010, the City Councils of Bryan and College Station approved by-laws 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 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 BVSWMA, 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 BVSWMA, 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 reports BVSWMA, Inc. as a joint venture with the City of Bryan and recognizes 50% ownership in BVSWMA, Inc. in the City’s financial statements. Per GASB 14, a Joint Venture (JV) is a legal entity or other organization that results from a contractual arrangement and that is owned, operated, or governed by two or more participants as a separate and specific activity subject to joint control, in which the participants retain (a) an ongoing financial interest or 2013 2012 Unpaid Claims, October 1 1,515,910$ 1,744,456$ Incurred Claims (including IBNR's)6,553,303 3,908,222 Claims Paid (6,427,666) (4,136,768) Unpaid Claims, September 30 1,641,547$ 1,515,910$ 60 Notes to the Financial Statements  For the Fiscal Year Ended September 30, 2013        City of College Station, Texas  (b) an ongoing financial responsibility. Joint control means that no single participant has the ability to unilaterally control the financial or operating policies of the Joint Venture. An ongoing financial interest includes an equity interest, as defined in paragraph 72, and any other arrangement that causes a participating government to have access to the Joint Venture’s resources. An equity interest in a Joint Venture is manifest in the ownership of shares of Joint Venture stock or by otherwise having an explicit, measurable right to the net resources of a Joint Venture that is usually based on an investment of financial or capital resources by a participating government. An equity interest is explicit and measurable if the Joint Venture agreement stipulates that the participants have a present or future claim to the net resources of the Joint Venture and sets forth the method to determine the participants’ shares of the Joint Venture’s net resources. Per the BVSWMA, Inc. by-laws, paragraph 8.05, Section 431.107 of the Texas Transportation Corporation Act entitles the Cities, at all times, to have the right to equally receive the income earned by the corporation. Also, per BVSWMA, Inc.’s by-laws, paragraph 4.03a, the corporation, with the approval of the Cities, is authorized to issue short-term debt; however, the Cities shall be given the first opportunity to provide these funds before the Board incurs debt. This would result in the City of College Station providing an investment of financial resources to BVSWMA, Inc. An ongoing financial responsibility for a Joint Venture occurs if a participating government is obligated in some manner for the debts (see paragraph 33 of GASB 14) of the Joint Venture, or if the Joint Venture’s continued existence depends on the continued funding by the government. Per paragraph 33 of GASB 14 – A primary government is obligated in some manner for the debt of an organization if it is legally obligated to assume all or part of the debt in the event of default. Per Article XIV, paragraph 14.03, of the Articles of Incorporation of BVSWMA, Inc., upon dissolution of the corporation: A. the assets of the Corporation shall be distributed equally between the Cities; and B. any remaining liabilities of the corporation shall be shared equally between the Cities. State and federal laws and regulations required BVSWMA, Inc. to place a final cover on its Rock Prairie landfill site when it stopped accepting waste and to perform certain maintenance and monitoring functions at the site for thirty years after closure. The Rock Prairie Road landfill stopped accepting waste in July 2011, and the Twin Oaks Landfill in Grimes County began accepting waste. During the fiscal year ending September 30, 2013, the installation of the remaining final cover at the Rock Prairie Road Landfill (+/- 40 acres) was completed. Although closure and post closure care costs will be paid only near or after the date that the landfill stopped accepting waste, BVSWMA, Inc. reports a portion of these closure and post closure care costs as an operating expense in each period based on landfill capacity used as of each balance sheet date. Actual cost may be higher due to inflation, changes in technology, or changes in regulations. 61 Notes to the Financial Statements  For the Fiscal Year Ended September 30, 2013        City of College Station, Texas  The following is a summary of information from the audited financial statements of BVSWMA, Inc. as of September 30, 2013: The City’s share of BVSWMA, Inc.’s net assets for fiscal year 2013 was $12,618,120. A copy of BVSWMA, Inc.’s financial statements may be obtained from the City’s Fiscal Services Department. D. Pension Plan Plan Description The City provides pension benefits for all of its full-time employees through a nontraditional, joint contributory, hybrid defined benefit plan in the state-wide Texas Municipal Retirement System ("TMRS"), an agent multiple-employer public employee retirement system. The plan provisions that have been adopted by the City are within the options available in the governing state statutes of TMRS. TMRS issues a publicly available comprehensive annual financial report that includes financial statements and required supplementary information (RSI) for TMRS; the report also provides detailed explanations of the contributions, benefits and actuarial methods and assumptions used by the System. The report may be obtained by writing to TMRS, Post Office Box 149153, Austin, Texas 78714-9153 or by calling 800-924- 8677; in addition, the report is available on TMRS’ website at http://www.tmrs.com/ 2013 2012 Assets: Current assets 10,067,993$ 10,851,854$ Capital assets 33,003,796 31,445,445 Accumulated depreciation (7,140,312) (5,320,416) Deferred landfill permits 3,113,380 3,113,379 Less: accumulated amortization (81,982) (49,422) Total assets 38,962,875 40,040,840 Liabilities: Current liabilities 882,990 812,962 Noncurrent liabilities: Accrued post closure maintenance costs 4,373,644 5,886,085 Other noncurrent liabilities 8,470,000 8,915,000 Total liabilities 13,726,634 15,614,047 Net position Net investment in capital assets 16,948,483 16,780,028 Unrestricted 8,287,758 7,646,765 Total net position 25,236,241$ 24,426,793$ Program revenues 7,266,856$ 6,998,799$ Expenses 6,509,915 7,246,820 Operating income 756,941 (248,021) General revenues 52,508 50,367 Change in net position 809,449$ (197,654)$ 62 Notes to the Financial Statements  For the Fiscal Year Ended September 30, 2013        City of College Station, Texas  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: 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: Plan Year 2011 Plan Year 2012 Plan Year 2013 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 75% Repeating Transfers Annuity Increase (to retirees)70% of CPI Repeating 70% of CPI Repeating 50% of CPI Repeating 2011 2012 2013 Annual Required Contribution (ARC)7,998,505 7,323,878 7,441,907 Interest on Net Pension Obligation 234,216 356,127 388,924 Adjustment to the ARC (193,787) (285,719) (341,701) Annual Pension Cost 8,038,934 7,394,287 7,489,130 Contributions Made (6,413,446) (6,586,598) (6,062,866) Increase (Decrease) in net pension obligation 1,625,488 807,689 1,426,264 Net Pension Obligation/(Asset), beginning of year 3,122,878 4,748,366 5,556,055 Net Pension Obligation/(Asset), end of year 4,748,366 5,556,055 6,982,319 63 Notes to the Financial Statements  For the Fiscal Year Ended September 30, 2013        City of College Station, Texas  The required contribution rates for fiscal year 2013 were determined as part of the December 31, 2010 and 2011 actuarial valuations. Additional information as of the latest actuarial valuation, December 31, 2012, also follows: Funded Status and Funding Progress – In June 2011, SB 350 was enacted by the Texas Legislature resulting in a restructure of the TMRS funds. This legislation provided for the actuarial valuation to be completed, as if restructuring had occurred on December 31, 2010. In addition, the actuarial assumptions were updated for the new fund structure, based on an actuarial experience study that was adopted by the TMRS Board at their May 2011 meeting (the review compared actual to expected experience for the four- year period of January 1, 2006 through December 31, 2009). For a complete description of the combined impact of the legislation and new actuarial assumptions, including the effects on TMRS city rates and funding ratios, please see the December 31, 2010 TMRS Comprehensive Annual Financial Report (CAFR). The funded status as of December 31, 2012, the most recent actuarial valuation date, is as follows: 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. Fiscal Year Ending Annual Pension Cost (APC) Actual Contribution Made Percentage of APC Contributed Net Pension Obligation 9/30/2011 8,038,934$ 6,413,446$ 79.78% 4,748,366$ 9/30/2012 7,394,287 6,586,598 89.08%5,556,055 9/30/2013 7,489,130 6,062,866 80.96%6,982,319 Three Year Trend Information Valuation Date 12/31/2010 12/31/2011 12/31/2012 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 GASB 25 Equivalent Single Amortization Period 27.1 years; closed period 26.2 years; closed period 25.3 years; closed period Amortization Period for new Gains/Losses 30 years 30 years 30 years Asset Valuation Method 10-year Smoothed Market 10-year Smoothed Market 10-year Smoothed Market Actuarial Assumptions: Investment Rate of Return *7.0%7.0%7.0% 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%1.5%1.5% UAAL as a Actuarial Actuarial Actuarial Covered Percentage Valuation Value of Accrued Unfunded Funded Payroll of Covered Date* Assets Liability (AAL) AAL (UAAL) Ratio (Calendar Year) Payroll 12/31/2010 145,688,745 190,548,951 44,860,206 76.5% 40,662,340 110.3% 12/31/2011 159,366,251 203,122,476 43,756,225 78.5% 41,553,358 105.3% 12/31/2012 174,277,295 198,075,559 23,798,264 88.0% 41,386,265 57.5% 64 Notes to the Financial Statements  For the Fiscal Year Ended September 30, 2013        City of College Station, Texas  E. Other Post Employment Benefits 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. 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. During fiscal year 2013, forty-three former employees were covered under this arrangement, with claims less retiree contributions totaling ($3,833). 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 Position 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 described in Note V.C, the City terminated its Borrowed Employee Agreement with BVSWMA, Inc. Therefore, the related OPEB obligation of $134,385 was removed. 2011 2012 2013 Annual Required Contribution (ARC)1,850,510$ 1,360,907$ 1,449,844$ Interest on Net Pension Obligation 211,750 276,044 333,710 Adjustment to the ARC (262,374) (342,039) (413,492) Annual OPEB Cost 1,799,886 1,294,912 1,370,062 Contributions Made (513,998) (141,585) 3,833 Increase (Decrease) in net pension obligation 1,285,888 1,153,327 1,373,895 Net OPEB Obligation/(Asset), beginning of year 4,234,990 5,520,878 6,674,205 Net OPEB Obligation/(Asset), end of year 5,520,878$ 6,674,205$ 8,048,100$ 65 Notes to the Financial Statements  For the Fiscal Year Ended September 30, 2013        City of College Station, Texas  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, 2012 actuarial valuation. Significant methods and assumptions follow: Accounting Year Ending Annual OPEB Cost Actual Contribution Made Percentage of Annual OPEB Cost Contributed Net OPEB Obligation 9/30/2011 1,799,886 513,998 28.56% 5,520,878 9/30/2012 1,294,912 141,585 10.93% 6,674,205 9/30/2013 1,370,062 (3,833) -0.28% 8,048,100 Three-Year Trend Information Actuarial valuation date:10/1/2012 Asset Valuation Method:Market Actuarial Cost Method:Projected Unit Credit Actuarial Assumptions: Annual Investment Return Assumption*5.0% *Includes Inflation at:4.00% Projected Salary Increases:N/A Annual Healthcare Trend Rates: 8.50% in FYE 2013 declining to 5.00% in FYE 2020 Amortization Method:Level dollar Amortization Period:30 year open period 66 Notes to the Financial Statements  For the Fiscal Year Ended September 30, 2013        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 beginning October 1, 2010, and one for the fiscal year beginning October 1, 2012. There are factors that affect the ability to compare amounts reported from one actuarial valuation date to the next. The assumptions that have been changed since the previous valuation are: ‐ the Discount Rate has been updated to reflect changes in the allocation of assets of the employer and the expected return on such assets; ‐ the Assumed Per Capita Health Benefit Costs and Assumed Expenses for retirees and dependents have been updated to reflect changes in claims and expense expectations; and ‐ the Health Benefit Cost Trend and Expense Trend have been updated to reflect changes in short-term expectations of the annual rate of increase of the Assumed Per Capita Health Benefit Costs. Two separate valuations, one of which used the October 1, 2010 valuation date and one the October 1, 2012 valuation date, were used to develop results for the fiscal years ending September 30, 2012 and September 30, 2013. The plan was changed effective January 1, 2012 to eliminate post-65 medical coverage and was changed effective January 1, 2013 to eliminate one of the PPO benefit options. While the plan typically undergoes a biennial valuation, pursuant to paragraph 12 of GASB 45, a new valuation must be performed if there are significant changes to the plan since the previous valuation. As previously stated, for the fiscal year ending September 30, 2013, a new actuarial valuation incorporating these changes to the plan provisions was performed using October 1, 2012 valuation date. 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. The City is not the 457 Plan Administrator or trustee and the assets of the plan are not reportable in the City's basic financial statements. G. Commitments and Contingencies Construction Commitments The City has contractual commitments of $8,325,496 in the Capital Projects Funds, $772,917 in the Water Fund, $2,761,839 in the Wastewater Fund and $4,462,056 in the Electric Fund. These commitments are for construction of various projects and will be funded primarily from long-term debt. UAAL as a Actuarial Actuarial Actuarial Covered Percentage Valuation Value of Accrued Unfunded Funded Payroll of Covered Date Assets Liability (AAL) AAL (UAAL) Ratio (Fiscal Year) Payroll 10/1/2010 - 13,868,768 13,868,768 0.0% 42,298,776 32.79% 10/1/2010 - 9,356,116 9,356,116 0.0% 42,298,776 22.12% 10/1/2012 - 10,897,037 10,897,037 0.0% 44,000,000 24.77% 67 Notes to the Financial Statements  For the Fiscal Year Ended September 30, 2013        City of College Station, Texas  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. Management believes any unfavorable outcomes would not be material. H. Bonds Available for Sale Authorized general obligation bonds available for future issue are as follows: 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. J. Subsequent Events In January 2014, the City Council adopted Ordinance 2014-3545 which amends Chapter 11 of City’s Code of Ordinances by adopting section 12, related to the creation of Municipal Utility Districts (MUDs). Also adopted was Resolution 01-09-14-01 which establishes the policies for the application process and costs for such requests, the standards that development and infrastructure shall meet if consent is granted, the issues related to annexation of property within a MUD, issuance of debt, and the dissolution of a MUD. These policies apply to any future MUDs either within the City limits, or within the City’s Extraterritorial Jurisdictions. Year Unissued Authorized Amount Public Buildings 1984 700,000$ (1) Street Improvements 1984 500,000 (1) Municipal Complex Improvements 2003 3,655,000 Library Expansion 2008 8,385,000 Parks and Recreation 2008 8,950,000 Street Improvements 2008 29,425,000 Traffic Signals 2008 3,000,000 Total 54,615,000$ (1) Contains projects which may have been completed or abandoned; therefore, these Bonds are not likely to ever be issued. 68 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] 12/31/2003 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% 12/31/2010 145,688,745 190,548,951 44,860,206 76.5% 40,662,340 110.3% 12/31/2011 159,366,251 203,122,476 43,756,225 78.5% 41,553,358 105.3% 12/31/2012 174,277,295 198,075,559 23,798,264 88.0% 41,386,265 57.5% *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. In June 2011, SB 350 was enacted by the Texas Legislature resulting in a restructure of the TMRS funds. This legislation provided for the actuarial valuation to be completed as if restructuring had occurred on December 31, 2010, In addition, the actuarial assumptions were updated for the new fund structure, based on an actuarial experience study that was adopted by the TMRS Board at their May 2011 meeting (the review compared actual to expected experience for the four year period of January 1, 2006 through December 31, 2009). For a complete description of the combined impact of the legislation and new actuarial assumptions, including the effects on TMRS city rates and funding ratios, please see the December 31, 2011 TMRS Comprehensive Annual Financial Report (CAFR). 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. 69 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 Actuarial Covered Percentage Valuation Value of Accrued Unfunded Funded Payroll of Covered Date Assets Liability (AAL) AAL (UAAL) Ratio (Fiscal Year) Payroll 10/1/2010 - 13,868,768$ 13,868,768$ 0.0% 42,298,776$ 32.79% 10/1/2010 - 9,356,116 9,356,116 0.0% 42,298,776 22.12% 10/1/2012 - 10,897,037 10,897,037 0.0% 44,000,000 24.77% 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. Two separate valuations, one of which used the October 1, 2010 valuation date and one the October 1, 2012 valuation date, were used to develop results for the fiscal years ending September 30, 2012 and September 30, 2013. The plan was changed effective January 1, 2012 to eliminate post-65 medical coverage and was changed effective January 1, 2013 to eliminate one of the PPO benefit options. While the plan typically undergoes a biennial valuation, pursuant to paragraph 12 of GASB 45, a new valuation must be performed if there are significant changes to the plan since the previous valuation. As previously stated, for the fiscal year ending September 30, 2013, a new actuarial valuation incorporating these changes to the plan provisions was performed using October 1, 2012 valuation date. 70 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Ad valorem taxes 14,033,828$ 14,033,828$ 13,938,602$ -$ 13,938,602$ (95,226)$ Sales taxes 21,726,000 21,726,000 23,064,035 - 23,064,035 1,338,035 Mixed drink & franchise 2,487,314 2,487,314 2,651,828 - 2,651,828 164,514 Licenses & permits 997,932 997,932 1,238,967 - 1,238,967 241,035 Intergovernmental 241,305 306,920 469,783 - 469,783 162,863 Parks & recreation charges for services 151,800 151,800 97,711 - 97,711 (54,089) Other charges for services 2,467,354 2,467,354 2,507,808 - 2,507,808 40,454 Fines, forfeits, & penalties 3,739,096 3,841,096 3,252,418 - 3,252,418 (588,678) Investment income 78,585 78,585 88,198 - 88,198 9,613 Rents & royalties 564,479 564,479 650,407 - 650,407 85,928 Contributions 18,581 47,481 56,990 - 56,990 9,509 Other 211,140 109,140 212,349 - 212,349 103,209 Total revenues 46,717,414 46,811,929 48,229,096 - 48,229,096 1,417,167 Expenditures General government 4,060,468 4,161,612 3,825,760 - 3,825,760 (335,852) Fiscal services 3,037,512 3,071,264 2,970,342 - 2,970,342 (100,922) Police 16,505,367 17,123,395 16,515,820 - 16,515,820 (607,575) Fire 13,171,632 13,555,297 13,297,527 - 13,297,527 (257,770) Planning & development svcs 3,629,777 3,687,018 3,505,029 - 3,505,029 (181,989) Public works 7,452,831 7,668,016 7,253,222 - 7,253,222 (414,794) Parks & Recreation 4,880,815 4,917,494 4,463,535 - 4,463,535 (453,959) Information technology 4,412,057 4,550,814 4,271,209 - 4,271,209 (279,605) Library 1,013,116 1,013,116 994,476 - 994,476 (18,640) Contributions 957,013 1,087,013 1,086,012 - 1,086,012 (1,001) Other 430,690 510,938 1,300,627 (600,000) 700,627 189,689 Total Expenditures 59,551,278 61,345,977 59,483,559 (600,000) 58,883,559 (2,462,418) Excess(deficit) of revenues Over (under) expenditures (12,833,864) (14,534,048) (11,254,463) 600,000 (10,654,463) 3,879,585 Other financing sources (uses) Transfers in 14,896,795 14,896,795 14,664,450 (572,383) 14,092,067 (804,728) Transfers out (4,937,222) (5,032,520) (3,977,149) (600,000) (4,577,149) 455,371 Contingency (250,000) (145,860) - - - 145,860 Total other financing sources (uses) 9,709,573 9,718,415 10,687,301 (1,172,383) 9,514,918 (203,497) Net change in fund balances (3,124,291) (4,815,633) (567,162) (572,383) (1,139,545) 3,676,088 Fund balances , October 1 16,492,694 16,492,694 16,492,694 - 16,492,694 - Fund balances, September 30 13,368,403$ 11,677,061$ 15,925,532$ (572,383)$ 15,353,149$ 3,676,088$ NOTE: The city prepares its annual budget on a budget basis which differs from a GAAP basis. The budget and all transactions are presented in accordance with the budget basis in the Schedule of Revenues, Expenditures, and Changes in Fund Balance-Budget and Actual-General Fund to provide a relevant comparison of actual results with the budget. See Notes III A and B for further explanation of budget information. CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual General Fund(s) For the Fiscal Year Ended September 30, 2013 71 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. For the fiscal year ending September 30, 2013, 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. Unclaimed Property Fund – accounts for checks issued but not cashed. After the abandonment period of 1 year for payroll checks over $100 and 3 years for accounts payable checks over $100, these funds are sent to the State Comptroller. Efficiency Time Payment Fund – accounts for unrestricted revenue collected by the Municipal Court pursuant to Texas Local Government Code, Section 133.103. Chimney Hill Fund - account for the receipt and expenditure of funds by the City from the lease of retail property at the Chimney Hill Center. 72 General Fund Economic Development Unclaimed Property Efficiency Time Payment Chimney Hill Total General Fund Assets Cash and cash equivalents 13,283,533$ 742,609$ 180,729$ 48,085$ 1,342,356$ 15,597,312$ Equity in investments 1,754,996 98,112 23,878 6,353 177,350 2,060,689 Receivable (net of allow for uncollectible) 3,979,915 - - - 29,895 4,009,810 Inventories 39,092 - - - - 39,092 Prepaid costs 20,334 - - - - 20,334 Restricted assets Cash and cash equivalents - - - - 12,696 12,696 Total assets 19,077,870$ 840,721$ 204,607$ 54,438$ 1,562,297$ 21,739,933$ Liabilities and fund balances Accounts payable 2,336,039$ 1,880$ -$ 1,101$ 1,373$ 2,340,393$ Accrued liabilities 924,392 - 204,607 - - 1,128,999 Unearned revenue-other 844,595 - - - - 844,595 Interfund payable - 240,000 - - - 240,000 Refundable deposits 68,802 - - - 12,696 81,498 Retainage payable 6,169 - - - - 6,169 Customer construction advances 727,761 - - - - 727,761 Total liabilities 4,907,758 241,880 204,607 1,101 14,069 5,369,415 Deferred inflows of resources Unavailable revenue-property taxes 444,986 - - - - 444,986 Total deferred inflows of resources 444,986 - - - - 444,986 Fund balances Nonspendable 59,426 - - - - 59,426 Restricted 266,573 - - - - 266,573 Assigned 911,914 - - - 60,718 972,632 Unassigned 12,487,213 598,841 - 53,337 1,487,510 14,626,901 Total fund balances 13,725,126 598,841 - 53,337 1,548,228 15,925,532 Total liabilities, deferred inflows of resources and fund balances 19,077,870$ 840,721$ 204,607$ 54,438$ 1,562,297$ 21,739,933$ CITY OF COLLEGE STATION, TEXAS Combining Balance Sheet General Fund(s) September 30, 2013 73 General Fund Economic Development Unclaimed Property Efficiency Time Payment Chimney Hill Total General Fund(s) Revenues Ad valorem taxes 13,938,602$ -$ -$ -$ -$ 13,938,602$ Sales taxes 23,064,035 - - - - 23,064,035 Mixed drink and franchise 2,651,828 - - - - 2,651,828 Licenses and permits 1,238,967 - - - - 1,238,967 Intergovernmental 469,783 - - - - 469,783 Parks and recreation charges for services 97,711 - - - - 97,711 Other charges for services 2,507,808 - - - - 2,507,808 Fines, forfeits, and penalties 3,245,216 - - 7,202 - 3,252,418 Investment income 77,593 3,472 - 217 6,916 88,198 Rents and royalties 183,529 - - - 466,878 650,407 Contributions 56,990 - - - - 56,990 Other 212,349 - - - - 212,349 Total revenues 47,744,411 3,472 - 7,419 473,794 48,229,096 Expenditures Current General government 3,505,421 320,339 - - - 3,825,760 Fiscal services 2,967,359 - - 2,983 - 2,970,342 Police 16,515,820 - - - - 16,515,820 Fire 13,297,527 - - - - 13,297,527 Planning and development services 3,505,029 - - - - 3,505,029 Public works 6,482,556 - - - 36,692 6,519,248 Capital improvement projects 733,974 - - - - 733,974 Parks & recreation 4,463,535 - - - - 4,463,535 Information technology 4,271,209 - - - - 4,271,209 Library 994,476 - - - - 994,476 Contributions 981,013 104,999 - - - 1,086,012 Other 618,709 - - - 681,918 1,300,627 Total expenditures 58,336,628 425,338 - 2,983 718,610 59,483,559 Excess (deficit) of revenues over (under) expenditures (10,592,217) (421,866) - 4,436 (244,816) (11,254,463) Other financing sources (uses) Transfers in 14,364,450 300,000 - - - 14,664,450 Transfers out (3,977,149) - - - - (3,977,149) Total other financing sources (uses) 10,387,301 300,000 - - - 10,687,301 Net change in fund balances (204,916) (121,866) - 4,436 (244,816) (567,162) Fund balances, October 1 13,930,042 720,707 - 48,901 1,793,044 16,492,694 Fund balances, September 30 13,725,126$ 598,841$ -$ 53,337$ 1,548,228$ 15,925,532$ CITY OF COLLEGE STATION, TEXAS Combining Statement of Revenues, Expenditures, and Changes in Fund Balance General Fund(s) For the Fiscal Year Ended September 30, 2013 74 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Ad valorem taxes 14,033,828$ 14,033,828$ 13,938,602$ -$ 13,938,602$ (95,226)$ Sales taxes 21,726,000 21,726,000 23,064,035 - 23,064,035 1,338,035 Mixed drink and franchise 2,487,314 2,487,314 2,651,828 - 2,651,828 164,514 Licenses and permits 997,932 997,932 1,238,967 - 1,238,967 241,035 Intergovernmental 241,305 306,920 469,783 - 469,783 162,863 Parks and recreation charges for services 151,800 151,800 97,711 - 97,711 (54,089) Other charges for services 2,467,354 2,467,354 2,507,808 - 2,507,808 40,454 Fines, forfeits, and penalties 3,731,191 3,833,191 3,245,216 - 3,245,216 (587,975) Investment income 67,686 67,686 77,593 - 77,593 9,907 Rents and royalties 133,654 133,654 183,529 - 183,529 49,875 Contributions 18,581 47,481 56,990 - 56,990 9,509 Other 211,140 109,140 212,349 - 212,349 103,209 Total revenues 46,267,785 46,362,300 47,744,411 - 47,744,411 1,382,111 Expenditures General government 3,754,411 3,832,863 3,505,421 - 3,505,421 (327,442) Fiscal services 2,990,012 3,023,764 2,967,359 - 2,967,359 (56,405) Police 16,505,367 17,123,395 16,515,820 - 16,515,820 (607,575) Fire 13,171,632 13,555,297 13,297,527 - 13,297,527 (257,770) Planning and development services 3,629,777 3,687,018 3,505,029 - 3,505,029 (181,989) Public works 7,428,331 7,643,516 7,216,530 - 7,216,530 (426,986) Parks & recreation 4,880,815 4,917,494 4,463,535 - 4,463,535 (453,959) Information technology 4,412,057 4,550,814 4,271,209 - 4,271,209 (279,605) Library 1,013,116 1,013,116 994,476 - 994,476 (18,640) Contributions 957,013 982,013 981,013 - 981,013 (1,000) Other 330,190 410,438 618,709 - 618,709 208,271 Total expenditures 59,072,721 60,739,728 58,336,628 - 58,336,628 (2,403,100) Excess (deficit) of revenues over (under) expenditures (12,804,936) (14,377,428) (10,592,217)- (10,592,217) 3,785,211 Other financing sources (uses) Transfers in 14,596,795 14,596,795 14,364,450 (572,383) 13,792,067 (804,728) Transfers out (4,337,222) (4,432,520) (3,977,149)- (3,977,149) 455,371 Contingency (250,000) (145,860)--- 145,860 Total other financing sources (uses)10,009,573 10,018,415 10,387,301 (572,383) 9,814,918 (203,497) Net change in fund balances (2,795,363) (4,359,013) (204,916) (572,383) (777,299) 3,581,714 Fund balances, October 1 13,930,042 13,930,042 13,930,042 - 13,930,042 - Fund balances, September 30 11,134,679$ 9,571,029$ 13,725,126$ (572,383)$ 13,152,743$ 3,581,714$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual General Fund(reported as part of the General Fund(s)) For the Fiscal Year Ended September 30, 2013 75 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Investment income 3,699$ 3,699$ 3,472$ -$ 3,472$ (227)$ Total revenues 3,699 3,699 3,472 -3,472 (227) Expenditures General government 306,057 328,749 320,339 - 320,339 (8,410) Contributions - 105,000 104,999 - 104,999 1 Total expenditures 306,057 433,749 425,338 - 425,338 (8,411) Excess (deficit) of revenues over (under) expenditures (302,358) (430,050) (421,866)- (421,866)8,184 Other financing sources (uses) Transfers in 300,000 300,000 300,000 - 300,000 - Transfers out ------ Total other financing sources (uses) 300,000 300,000 300,000 - 300,000 - Net change in fund balances (2,358) (130,050) (121,866)- (121,866)8,184 Fund balances, October 1 720,707 720,707 720,707 - 720,707 - Fund balances, September 30 718,349$ 590,657$ 598,841$ -$ 598,841$ 8,184$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Economic Development Fund (reported as part of the General Fund(s)) For the Fiscal Year Ended September 30, 2013 76 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Fines, forfeits, and penalties 7,905$ 7,905$ 7,202$ -$ 7,202$ (703)$ Investment income 200 200 217 -217 17 Total revenues 8,105 8,105 7,419 -7,419 (686) Expenditures Fiscal services 47,500 47,500 2,983 -2,983 (44,517) Total Expenditures 47,500 47,500 2,983 -2,983 (44,517) Excess (deficit) of revenues over (under) expenditures (39,395) (39,395)4,436 -4,436 43,831 Other financing sources (uses) Transfers in ------ Transfers out ------ Total other financing sources (uses)------ Net change in fund balances (39,395) (39,395)4,436 -4,436 43,831 Fund balances, October 1 48,901 48,901 48,901 - 48,901 - Fund balances, September 30 9,506$ 9,506$ 53,337$ -$ 53,337$ 43,831$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Efficiency Time Payment Fund (reported as part of the General Fund(s)) For the Fiscal Year Ended September 30, 2013 77 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Investment income 7,000$ 7,000$ 6,916$ -$ 6,916$ (84)$ Rents and royalties 430,825 430,825 466,878 - 466,878 36,053 Total revenues 437,825 437,825 473,794 - 473,794 35,969 Expenditures Public works 24,500 24,500 36,692 - 36,692 12,192 Other 100,500 100,500 681,918 (600,000) 81,918 (18,582) Total expenditures 125,000 125,000 718,610 (600,000) 118,610 (6,390) Excess (deficit) of revenues over (under) expenditures 312,825 312,825 (244,816) 600,000 355,184 42,359 Other financing sources (uses) Transfers in ------ Transfers out (600,000) (600,000)- (600,000) (600,000)- Total other financing sources (uses) (600,000) (600,000)- (600,000) (600,000)- Net change in fund balances (287,175) (287,175) (244,816)- (244,816) 42,359 Fund balances, October 1 1,793,044 1,793,044 1,793,044 - 1,793,044 - Fund balances, September 30 1,505,869$ 1,505,869$ 1,548,228$ -$ 1,548,228$ 42,359$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Chimney Hill Fund (reported as part of the General Fund(s)) For the Fiscal Year Ended September 30, 2013 78 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 – 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 - account for funds collected by municipal court 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 – account for funds collected by municipal court used to finance the salary and benefits of a juvenile case manager. Police Seizure Fund – 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. Memorial Cemetery Fund – account for sales of plots (and options of plots) in the Aggie Field of Honor & Municipal Cemetery. Memorial Cemetery Endowment Fund – account for principal trust amounts received and related interest income for the College Station Memorial Cemetery. Texas Ave. Cemetery Endowment Fund – to account for principal trust amounts received and related interest income for the College Station Cemetery. Hotel Tax Fund – 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 – 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 – 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 – 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. Sidewalk Zones- 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 sidewalks. 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. Recreation Fund- is designed to help the city identify costs and revenues associated with sports, concessions, Senior/Teen Centers, and instruction programs. Ultimately, the fund will help identify how much the General Fund is subsidizing adult and youth programs. 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. 79 Court Technology Fee Court Security Fee Juvenile Case Manager Police Seizure Memorial Cemetery Memorial Cemetery Endowment Texas Ave Cemetery Endowment Assets Cash and cash equivalents 382,054$ 64,170$ 277,416$ 72,168$ 1,382,560$ 586,091$ 1,573,436$ Equity in investments 50,476 8,478 36,652 9,535 182,661 77,433 207,879 Receivable (net of allow for uncollectible) - - - - 28,311 13,944 1,370 Inventories - - - - 4,467,292 2,200,308 212 Total assets 432,530$ 72,648$ 314,068$ 81,703$ 6,060,824$ 2,877,776$ 1,782,897$ Liabilities Accounts payable -$ -$ -$ -$ -$ -$ 1,621$ Accrued liabilities - 1,506 2,077 ---- Retainage payable - ------ Refundable deposits - ------ Total liabilities - 1,506 2,077 - - - 1,621 Deferred inflows of resources Unavailable revenue-loans receivable - ------ Unavailable revenue-other - - - - 28,311 13,944 1,370 Total deferred inflows of resources - - - - 28,311 13,944 1,370 Fund balance Nonspendable - - - - 4,467,292 2,200,308 212 Restricted 432,530 71,142 311,991 81,703 - - - Committed - - - - 1,565,221 663,524 1,779,694 Assigned - ------ Unassigned - ------ Total fund balance 432,530 71,142 311,991 81,703 6,032,513 2,863,832 1,779,906 Total liabilities, deferred inflows and fund balance 432,530$ 72,648$ 314,068$ 81,703$ 6,060,824$ 2,877,776$ 1,782,897$ Special Revenue CITY OF COLLEGE STATION, TEXAS Combining Balance Sheet Non-Major Governmental Funds September 30, 2013 80 Hotel Tax Community Development Wolf Pen Creek Tax Increment Financing District Parks Escrow Sidewalk Zones Drainage Projects Recreation General Government Projects Parks & Recreation Projects Total Other Governmental Funds 5,918,321$ 276,262$ 1,105,696$ 3,305,835$ 48,307$ 2,534,233$ 55,538$ 1,775,004$ 3,080,473$ 22,512,031$ 781,918 36,499 146,083 436,760 6,383 334,818 7,338 234,510 406,987 2,889,943 - 1,610,628 --- 225,892 5,242 -- 1,885,387 ---------6,667,812 6,700,239$ 1,923,389$ 1,251,779$ 3,742,595$ 54,690$ 3,094,943$ 68,118$ 2,009,514$ 3,487,460$ 33,955,173$ 210,762$ 77,419$ -$ 39,724$ -$ 103,429$ 37,914$ 25,322$ 22,416$ 518,607$ -3,626 ---14,053 21,625 --42,887 9,878 691 ---22,711 --50,900 84,180 ------8,579 --8,579 220,640 81,736 -39,724 - 140,193 68,118 25,322 73,316 654,253 - 223,962 -------223,962 ---------43,625 - 223,962 -------267,587 ---------6,667,812 6,479,599 1,617,691 1,251,779 3,702,871 54,690 2,954,750 - 1,984,192 3,414,144 22,357,082 ---------4,008,439 --------- - --------- - 6,479,599 1,617,691 1,251,779 3,702,871 54,690 2,954,750 - 1,984,192 3,414,144 33,033,333 6,700,239$ 1,923,389$ 1,251,779$ 3,742,595$ 54,690$ 3,094,943$ 68,118$ 2,009,514$ 3,487,460$ 33,955,173$ Capital Projects 81 Court Technology Fee Court Security Fee Juvenile Case Manager Police Seizure Memorial Cemetery Memorial Cemetery Endowment Texas Ave Cemetery Endowment Hotel Tax Revenues Other taxes -$ -$ -$ -$ -$ -$ -$ 4,393,867$ Licenses and permits -------- Intergovernmental - - - 23,614 ---- Charges for services ----244,411 120,382 10,973 - Fines, forfeits, and penalties 70,121 52,578 87,080 ----- Investment income 1,716 341 1,337 354 5,954 2,486 7,381 22,556 Rents and royalties -------- Contributions ------(1,000) - Other -------- Total revenues 71,837 52,919 88,417 23,968 250,365 122,868 17,354 4,416,423 Expenditures Current Fiscal services 50,203 69,907 101,149 ----7,450 Police - - - 34,291 ---- Planning and development svcs -------- Public works -------- Parks & recreation -----264-106,246 Contributions -------1,714,147 Other ----184,686 90,965 27 4,501 Capital outlay -------305,761 Total expenditures 50,203 69,907 101,149 34,291 184,686 91,229 27 2,138,105 Excess(deficit) of revenues over (under) expenditures 21,634 (16,988) (12,732) (10,323) 65,679 31,639 17,327 2,278,318 Other financing sources (uses) Issuance of debt -------- Transfers in -------- Transfers out -------(249,073) Total other financing sources (uses)-------(249,073) Net change in fund balance 21,634 (16,988) (12,732) (10,323) 65,679 31,639 17,327 2,029,245 Fund balances , October 1 410,896 88,130 324,723 92,026 5,966,834 2,832,193 1,762,579 4,450,354 Fund balances, September 30 432,530$ 71,142$ 311,991$ 81,703$ 6,032,513$ 2,863,832$ 1,779,906$ 6,479,599$ Special Revenue CITY OF COLLEGE STATION, TEXAS Combining Statement of Revenues, Expenditures, and Changes in Fund Balance Nonmajor Governmental Funds September 30, 2013 82 Community Development Wolf Pen Creek Tax Increment Financing District Parks Escrow Sidewalk Zones Drainage Projects Recreation General Government Projects Parks and Recreation Projects Total Other Governmental Funds -$ -$ -$ -$ -$ -$ -$ -$ 4,393,867$ -----1,333 - - 1,333 1,137,221 ----7,583 - - 1,168,418 ----2,009,180 922,910 - - 3,307,856 ------ --209,779 - 7,634 14,819 206 12,814 - 10,287 4,735 92,620 -----102,994 - - 102,994 - - 736,008 5,550 - 1,500 - - 742,058 7,305 ----14,376 - 78,443 100,124 1,144,526 7,634 750,827 5,756 2,021,994 1,050,696 10,287 83,178 10,119,049 ----132-2,989 1,067 232,897 ------ --34,291 685,702 - - - 78,123 - - - 763,825 ----878,694 - - - 878,694 -----3,313,850 - - 3,420,369 ------ --1,714,147 ----83,350 - - - 363,529 230,789 721,480 176,612 - 807,092 - 1,191,074 461,848 3,894,656 916,491 721,480 176,612 - 1,847,391 3,313,850 1,194,063 462,915 11,302,408 228,035 (713,846) 574,215 5,756 174,603 (2,263,154) (1,183,776) (379,737) (1,183,359) ------ -2,725,000 2,725,000 -----2,450,723 384,027 200,000 3,034,759 (243,744) (450,000) (46,561) - (424,368) (187,569) (151,943) (122,179) (1,875,437) (243,744) (450,000) (46,561) - (424,368) 2,263,154 232,084 2,802,821 3,884,322 (15,709) (1,163,846) 527,654 5,756 (249,765) - (951,692) 2,423,084 2,700,963 1,633,400 2,415,625 3,175,217 48,934 3,204,515 - 2,935,884 991,060 30,332,370 1,617,691$ 1,251,779$ 3,702,871$ 54,690$ 2,954,750$ -$ 1,984,192$ 3,414,144$ 33,033,333$ Capital Projects 83 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Fines, forfeits, and penalties 83,500$ 83,500$ 70,121$ -$ 70,121$ (13,379)$ Investment income 1,705 1,705 1,716 - 1,716 11 Total revenues 85,205 85,205 71,837 - 71,837 (13,368) Expenditures Fiscal services 60,707 60,707 50,203 - 50,203 (10,504) Total expenditures 60,707 60,707 50,203 - 50,203 (10,504) Excess(deficit) of revenues over (under) expenditures 24,498 24,498 21,634 - 21,634 (2,864) Other financing sources (uses) Transfers in ------ Transfers out ------ Total other financing sources (uses)------ Net change in fund balances 24,498 24,498 21,634 - 21,634 (2,864) Fund balances, October 1 410,896 410,896 410,896 - 410,896 - Fund balances, September 30 435,394$ 435,394$ 432,530$ -$ 432,530$ (2,864)$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Court Technology Fee Fund For the Fiscal Year Ended September 30, 2013 84 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Fines, forfeits, and penalties 67,618$ 67,618$ 52,578$ -$ 52,578$ (15,040)$ Investment income 409 409 341 - 341 (68) Total revenues 68,027 68,027 52,919 - 52,919 (15,108) Expenditures Fiscal services 66,943 67,758 69,907 - 69,907 2,149 Total expenditures 66,943 67,758 69,907 - 69,907 2,149 Excess(deficit) of revenues over (under) expenditures 1,084 269 (16,988) - (16,988) (17,257) Other financing sources (uses) Transfers in ------ Transfers out ------ Total other financing sources (uses)------ Net change in fund balances 1,084 269 (16,988) - (16,988) (17,257) Fund balances, October 1 88,130 88,130 88,130 - 88,130 - Fund balances, September 30 89,214$ 88,399$ 71,142$ -$ 71,142$ (17,257)$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Court Security Fee Fund For the Fiscal Year Ended September 30, 2013 85 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Fines, forfeits, and penalties 112,961$ 112,961$ 87,080$ -$ 87,080$ (25,881)$ Investment income 1,442 1,442 1,337 - 1,337 (105) Total revenues 114,403 114,403 88,417 - 88,417 (25,986) Expenditures Fiscal services 103,408 104,871 101,149 - 101,149 (3,722) Total expenditures 103,408 104,871 101,149 - 101,149 (3,722) Excess(deficit) of revenues over (under) expenditures 10,995 9,532 (12,732) - (12,732) (22,264) Other financing sources (uses) Transfers in ------ Transfers out ------ Total other financing sources (uses)------ Net change in fund balances 10,995 9,532 (12,732) - (12,732) (22,264) Fund balances, October 1 324,723 324,723 324,723 - 324,723 - Fund balances, September 30 335,718$ 334,255$ 311,991$ -$ 311,991$ (22,264)$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Juvenile Case Manager Fee Fund For the Fiscal Year Ended September 30, 2013 86 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Intergovernmental 26,500$ 26,500$ 23,614$ -$ 23,614$ (2,886)$ Investment income 290 290 354 - 354 64 Total revenues 26,790 26,790 23,968 - 23,968 (2,822) Expenditures Police 40,000 40,000 34,291 - 34,291 (5,709) Total expenditures 40,000 40,000 34,291 - 34,291 (5,709) Excess(deficit) of revenues over (under) expenditures (13,210) (13,210) (10,323) - (10,323) 2,887 Other financing sources (uses) Transfers in ------ Transfers out ------ Total other financing sources (uses)------ Net change in fund balances (13,210) (13,210) (10,323) - (10,323) 2,887 Fund balances, October 1 92,026 92,026 92,026 - 92,026 - Fund balances, September 30 78,816$ 78,816$ 81,703$ -$ 81,703$ 2,887$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Police Seizure Fund For the Fiscal Year Ended September 30, 2013 87 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Other charges for services 261,180$ 261,180$ 244,411$ -$ 244,411$ (16,769)$ Investment income 7,500 7,500 5,954 - 5,954 (1,546) Total revenues 268,680 268,680 250,365 - 250,365 (18,315) Expenditures Other - - 184,686 - 184,686 184,686 Total expenditures - - 184,686 - 184,686 184,686 Excess(deficit) of revenues over (under) expenditures 268,680 268,680 65,679 - 65,679 (203,001) Other financing sources (uses) Transfers in ------ Transfers out ------ Total other financing sources (uses)------ Net change in fund balances 268,680 268,680 65,679 - 65,679 (203,001) Fund balances, October 1 5,966,834 5,966,834 5,966,834 - 5,966,834 - Fund balances, September 30 6,235,514$ 6,235,514$ 6,032,513$ -$ 6,032,513$ (203,001)$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Memorial Cemetery Fund For the Fiscal Year Ended September 30, 2013 88 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Other charges for services 128,641$ 128,641$ 120,382$ -$ 120,382$ (8,259)$ Investment income 3,000 3,000 2,486 - 2,486 (514) Total revenues 131,641 131,641 122,868 - 122,868 (8,773) Expenditures Parks & recreation 10,000 10,000 264 - 264 (9,736) Other - - 90,965 - 90,965 90,965 Total expenditures 10,000 10,000 91,229 - 91,229 81,229 Excess(deficit) of revenues over (under) expenditures 121,641 121,641 31,639 - 31,639 (90,002) Other financing sources (uses) Transfers in ------ Transfers out ------ Total other financing sources (uses)------ Net change in fund balances 121,641 121,641 31,639 - 31,639 (90,002) Fund balances, October 1 2,832,193 2,832,193 2,832,193 - 2,832,193 - Fund balances, September 30 2,953,834$ 2,953,834$ 2,863,832$ -$ 2,863,832$ (90,002)$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Memorial Cemetery Endowment Fund For the Fiscal Year Ended September 30, 2013 89 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Other charges for services 5,000$ 5,000$ 10,973$ -$ 10,973$ 5,973$ Investment income 8,000 8,000 7,381 - 7,381 (619) Contributions - - (1,000) - (1,000) (1,000) Total revenues 13,000 13,000 17,354 - 17,354 4,354 Expenditures Other - - 27 - 27 27 Total expenditures - - 27 - 27 27 Excess(deficit) of revenues over (under) expenditures 13,000 13,000 17,327 - 17,327 4,327 Other financing sources (uses) Transfers in ------ Transfers out ------ Total other financing sources (uses)------ Net change in fund balances 13,000 13,000 17,327 - 17,327 4,327 Fund balances, October 1 1,762,579 1,762,579 1,762,579 - 1,762,579 - Fund balances, September 30 1,775,579$ 1,775,579$ 1,779,906$ -$ 1,779,906$ 4,327$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Texas Ave Cemetery Endowment Fund For the Fiscal Year Ended September 30, 2013 90 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Hotel occupancy tax 3,811,000$ 3,811,000$ 4,393,867$ -$ 4,393,867$ 582,867$ Investment income 23,000 23,000 22,556 - 22,556 (444) Total revenues 3,834,000 3,834,000 4,416,423 - 4,416,423 582,423 Expenditures Fiscal services - 15,000 7,450 - 7,450 (7,550) Parks & recreation 219,000 219,000 106,246 - 106,246 (112,754) Contributions 1,630,153 1,721,653 1,714,147 - 1,714,147 (7,506) Other 3,700,000 4,317,400 310,262 - 310,262 (4,007,138) Total expenditures 5,549,153 6,273,053 2,138,105 - 2,138,105 (4,134,948) Excess(deficit) of revenues over (under) expenditures (1,715,153) (2,439,053) 2,278,318 - 2,278,318 4,717,371 Other financing sources (uses) Transfers in ------ Transfers out (340,773) (340,773) (249,073) - (249,073) 91,700 Contingency (50,000) (50,000) - - - 50,000 Total other financing sources (uses) (390,773) (390,773) (249,073) - (249,073) 141,700 Net change in fund balances (2,105,926) (2,829,826) 2,029,245 - 2,029,245 4,859,071 Fund balances, October 1 4,450,354 4,450,354 4,450,354 - 4,450,354 - Fund balances, September 30 2,344,428$ 1,620,528$ 6,479,599$ -$ 6,479,599$ 4,859,071$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Hotel Tax Fund For the Fiscal Year Ended September 30, 2013 91 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Intergovernmental 4,626,141$ 4,626,141$ 1,137,221$ 250,815$ 1,388,036$ (3,238,105)$ Other 20,000 20,000 7,305 (3,036) 4,269 (15,731) Total revenues 4,646,141 4,646,141 1,144,526 247,779 1,392,305 (3,253,836) Expenditures Planning and development services 2,814,219 2,814,219 685,702 - 685,702 (2,128,517) Other 608,208 608,208 230,789 - 230,789 (377,419) Total expenditures 3,422,427 3,422,427 916,491 - 916,491 (2,505,936) Excess(deficit) of revenues over (under) expenditures 1,223,714 1,223,714 228,035 247,779 475,814 (747,900) Other financing sources (uses) Transfers in ------ Transfers out (1,223,714) (1,223,714) (243,744)- (243,744) 979,970 Total other financing sources (uses) (1,223,714) (1,223,714) (243,744)- (243,744) 979,970 Net change in fund balances -- (15,709) 247,779 232,070 232,070 Fund balances, October 1 1,633,400 1,633,400 1,633,400 - 1,633,400 - Fund balances, September 30 1,633,400$ 1,633,400$ 1,617,691$ 247,779$ 1,865,470$ 232,070$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Community Development Fund For the Fiscal Year Ended September 30, 2013 92 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Investment income 10,000$ 10,000$ 7,634$ -$ 7,634$ (2,366)$ Total revenues 10,000 10,000 7,634 - 7,634 (2,366) Expenditures Other 1,334,038 884,038 721,480 - 721,480 (162,558) Total expenditures 1,334,038 884,038 721,480 - 721,480 (162,558) Excess(deficit) of revenues over (under) expenditures (1,324,038) (874,038) (713,846) - (713,846) 160,192 Other financing sources (uses) Transfers in ------ Transfers out - (450,000) (450,000) - (450,000) - Total other financing sources (uses) - (450,000) (450,000) - (450,000) - Net change in fund balances (1,324,038) (1,324,038) (1,163,846) - (1,163,846) 160,192 Fund balances, October 1 2,415,625 2,415,625 2,415,625 - 2,415,625 - Fund balances, September 30 1,091,587$ 1,091,587$ 1,251,779$ -$ 1,251,779$ 160,192$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Wolf Pen Creek (WPC) TIF Fund For the Fiscal Year Ended September 30, 2013 93 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Investment income 10,000$ 10,000$ 14,819$ -$ 14,819$ 4,819$ Contributions 300,000 300,000 736,008 - 736,008 436,008 Total revenues 310,000 310,000 750,827 - 750,827 440,827 Expenditures Capital outlay 2,368,000 2,368,000 176,612 5,548 182,160 (2,185,840) Total expenditures 2,368,000 2,368,000 176,612 5,548 182,160 (2,185,840) Excess(deficit) of revenues over (under) expenditures (2,058,000) (2,058,000) 574,215 (5,548) 568,667 2,626,667 Other financing sources (uses) Transfers in ------ Transfers out (24,627) (24,627) (46,561) 21,934 (24,627) - Total other financing sources (uses) (24,627) (24,627) (46,561) 21,934 (24,627) - Net change in fund balances (2,082,627) (2,082,627) 527,654 16,386 544,040 2,626,667 Fund balances, October 1 3,175,217 3,175,217 3,175,217 - 3,175,217 - Fund balances, September 30 1,092,590$ 1,092,590$ 3,702,871$ 16,386$ 3,719,257$ 2,626,667$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Parks Escrow Fund For the Fiscal Year Ended September 30, 2013 94 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Other charges for services 2,009,400$ 2,009,400$ 2,009,180$ -$ 2,009,180$ (220)$ Investment income 10,000 10,000 12,814 - 12,814 2,814 Total revenues 2,019,400 2,019,400 2,021,994 - 2,021,994 2,594 Expenditures Fiscal services - - 132 - 132 132 Planning and development services 76,899 77,714 78,123 - 78,123 409 Public works 1,003,376 1,025,980 878,694 - 878,694 (147,286) Other 660,214 660,214 890,442 - 890,442 230,228 Total expenditures 1,740,489 1,763,908 1,847,391 - 1,847,391 83,483 Excess(deficit) of revenues over (under) expenditures 278,911 255,492 174,603 - 174,603 (80,889) Other financing sources (uses) Transfers in ------ Transfers out (375,193) (375,193) (424,368) 49,175 (375,193)- Total other financing sources (uses) (375,193) (375,193) (424,368) 49,175 (375,193)- Net change in fund balances (96,282) (119,701) (249,765) 49,175 (200,590) (80,889) Fund balances, October 1 3,204,515 3,204,515 3,204,515 - 3,204,515 - Fund balances, September 30 3,108,233$ 3,084,814$ 2,954,750$ 49,175$ 3,003,925$ (80,889)$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Drainage Projects Fund For the Fiscal Year Ended September 30, 2013 95 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Licenses and permits 225$ 225$ 1,333$ -$ 1,333$ 1,108$ Intergovernmental 7,000 7,000 7,583 - 7,583 583 Parks and rec charges for services 858,775 858,775 775,585 - 775,585 (83,190) Other charges for services 79,100 79,100 147,325 - 147,325 68,225 Rents and royalties 58,000 58,000 102,994 - 102,994 44,994 Contributions 6,200 6,200 1,500 - 1,500 (4,700) Other 19,800 19,800 14,376 - 14,376 (5,424) Total revenues 1,029,100 1,029,100 1,050,696 - 1,050,696 21,596 Expenditures Parks & recreation 3,533,272 3,537,827 3,313,850 - 3,313,850 (223,977) Total expenditures 3,533,272 3,537,827 3,313,850 - 3,313,850 (223,977) Excess(deficit) of revenues over (under) expenditures (2,504,172) (2,508,727) (2,263,154) - (2,263,154) 245,573 Other financing sources (uses) Transfers in 2,691,741 2,691,741 2,450,723 - 2,450,723 (241,018) Transfers out (187,569) (187,569) (187,569) - (187,569) - Total other financing sources (uses) 2,504,172 2,504,172 2,263,154 - 2,263,154 (241,018) Net change in fund balances - (4,555) - - - 4,555 Fund balances, October 1 ------ Fund balances, September 30 -$ (4,555)$ -$ -$ -$ 4,555$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Recreation Fund For the Fiscal Year Ended September 30, 2013 96 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Investment income 14,000$ 14,000$ 10,287$ -$ 10,287$ (3,713)$ Total revenues 14,000 14,000 10,287 - 10,287 (3,713) Expenditures Fiscal services 5,000 5,000 2,989 - 2,989 (2,011) Other 548,897 598,897 1,191,074 - 1,191,074 592,177 Total expenditures 553,897 603,897 1,194,063 - 1,194,063 590,166 Excess(deficit) of revenues over (under) expenditures (539,897) (589,897) (1,183,776) - (1,183,776) (593,879) Other financing sources (uses) Issuance of debt 250,000 250,000 - - - (250,000) Transfers in 338,729 384,027 384,027 - 384,027 - Transfers out (78,246) (78,246) (151,943) 73,697 (78,246) - Total other financing sources (uses) 510,483 555,781 232,084 73,697 305,781 (250,000) Net change in fund balances (29,414) (34,116) (951,692) 73,697 (877,995) (843,879) Fund balances, October 1 2,935,884 2,935,884 2,935,884 - 2,935,884 - Fund balances, September 30 2,906,470$ 2,901,768$ 1,984,192$ 73,697$ 2,057,889$ (843,879)$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual General Government Projects Fund For the Fiscal Year Ended September 30, 2013 97 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Intergovernmental 76,020$ 76,020$ -$ -$ -$ (76,020)$ Investment income 5,000 5,000 4,735 - 4,735 (265) Other 76,500 76,500 78,443 - 78,443 1,943 Total revenues 157,520 157,520 83,178 - 83,178 (74,342) Expenditures Fiscal services - - 1,067 - 1,067 1,067 Other 537,792 537,792 461,848 2,755 464,603 (73,189) Total expenditures 537,792 537,792 462,915 2,755 465,670 (72,122) Excess(deficit) of revenues over (under) expenditures (380,272) (380,272) (379,737) (2,755) (382,492) (2,220) Other financing sources (uses) Issuance of debt 4,250,000 4,250,000 2,725,000 2,755 2,727,755 (1,522,245) Transfers in - 200,000 200,000 - 200,000 - Transfers out (40,182) (40,182) (122,179) 81,997 (40,182) - Total other financing sources (uses) 4,209,818 4,409,818 2,802,821 84,752 2,887,573 (1,522,245) Net change in fund balances 3,829,546 4,029,546 2,423,084 81,997 2,505,081 (1,524,465) Fund balances, October 1 991,060 991,060 991,060 - 991,060 - Fund balances, September 30 4,820,606$ 5,020,606$ 3,414,144$ 81,997$ 3,496,141$ (1,524,465)$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Parks and Recreation Projects Fund For the Fiscal Year Ended September 30, 2013 98 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Ad valorem taxes 11,691,371$ 11,691,371$ 11,604,087$ -$ 11,604,087$ (87,284)$ Investment income 50,000 50,000 22,183 - 22,183 (27,817) Total revenues 11,741,371 11,741,371 11,626,270 - 11,626,270 (115,101) Expenditures Debt service principal 8,245,000 8,245,000 8,245,000 - 8,245,000 - Debt service interest 3,747,517 3,747,517 3,747,520 - 3,747,520 3 Fiscal charges 50,000 50,000 154,660 6,462 161,122 111,122 Total expenditures 12,042,517 12,042,517 12,147,180 6,462 12,153,642 111,125 Excess(deficit) of revenues over (under) expenditures (301,146) (301,146) (520,910) (6,462) (527,372) (226,226) Other financing sources (uses) Advance refunding - - (6,054,452) - (6,054,452) (6,054,452) Issuance of debt - - 5,255,000 236,462 5,491,462 5,491,462 Premium on bonds issued - - 951,174 (230,000) 721,174 721,174 Transfers in ------ Transfers out ------ Total other financing sources (uses) - - 151,722 6,462 158,184 158,184 Net change in fund balances (301,146) (301,146) (369,188) - (369,188) (68,042) Fund balances, October 1 3,082,443 3,082,443 3,802,443 - 3,802,443 - Fund balances, September 30 2,781,297$ 2,781,297$ 3,433,255$ -$ 3,433,255$ (68,042)$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Debt Service Fund For the Fiscal Year Ended September 30, 2013 99 Original Budget Final Budget Actual GAAP Basis Adjustments Budget Basis Actual Budget Basis Variance with Final Budget Over (Under) Revenues Intergovernmental -$ -$ 111,604$ -$ 111,604$ 111,604$ Investment income 65,000 65,000 49,307 - 49,307 (15,693) Other 100,000 100,000 5,022 - 5,022 (94,978) Total revenues 165,000 165,000 165,933 - 165,933 933 Expenditures Fiscal services - - 1,965 - 1,965 1,965 Other 135,000 300,000 300,000 - 300,000 - Capital outlay 6,953,561 6,838,561 4,908,063 - 4,908,063 (1,930,498) Fiscal charges 45,000 45,000 - 6,745 6,745 (38,255) Intergovernmental 1,312,500 1,312,500 301,061 - 301,061 (1,011,439) Total expenditures 8,446,061 8,496,061 5,511,089 6,745 5,517,834 (2,978,227) Excess(deficit) of revenues over (under) expenditures (8,281,061) (8,331,061) (5,345,156) (6,745) (5,351,901) 2,979,160 Other financing sources (uses) Issuance of debt 7,050,000 7,050,000 6,525,000 6,745 6,531,745 (518,255) Transfers in 1,518,134 1,818,134 930,262 - 930,262 (887,872) Transfers out (342,132) (342,132) (687,712) 345,581 (342,131) 1 Total other financing sources (uses) 8,226,002 8,526,002 6,767,550 352,326 7,119,876 (1,406,126) Net change in fund balances (55,059) 194,941 1,422,394 345,581 1,767,975 1,573,034 Fund balances, October 1 12,114,922 12,114,922 12,114,922 - 12,114,922 - Fund balances, September 30 12,059,863$ 12,309,863$ 13,537,316$ 345,581$ 13,882,897$ 1,573,034$ CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Street Projects Fund For the Fiscal Year Ended September 30, 2013 100 COMBINING FINANCIAL STATEMENTS NONMAJOR ENTERPRISE FUNDS Sanitation Fund - account for all sanitation collection and disposal activities by the City for both residential and commercial customers. Northgate Parking Garage Fund - account for revenues and expenses related to the operation and maintenance of the Northgate parking garage and parking lot. 101 Sanitation Northgate Parking Garage Total Nonmajor Enterprise Funds Assets Current assets Cash and cash equivalents 169,659$ 752,451$ 922,110$ Equity in investments 22,415 99,412 121,827 Receivable (net of allow for uncollectible) 809,148 - 809,148 Inventories 15,040 -15,040 Total current assets 1,016,262 851,863 1,868,125 Noncurrent assets Equity in joint venture 12,618,120 - 12,618,120 Loan receivable 4,330,000 -4,330,000 16,948,120 - 16,948,120 Capital assets Buildings -5,743,755 5,743,755 Machinery and equipment 4,763,913 826,882 5,590,795 Less accumulated depreciation (2,739,744) (2,201,917) (4,941,661) Construction in progress -9,400 9,400 Land -690,750 690,750 Total capital assets 2,024,169 5,068,870 7,093,039 Total noncurrent assets 18,972,289 5,068,870 24,041,159 Total assets 19,988,551 5,920,733 25,909,284 Deferred outflows of resources Deferred charge on refunding 67,066 67,066 Total deferred outflows of resources -67,066 67,066 Liabilities Current Liabilities Accounts payable 307,252 50,389 357,641 Compensated absences 7,272 329 7,601 Accrued liabilities 83,767 19,809 103,576 Unearned revenue-other -85,508 85,508 Accrued interest payable 16,802 8,117 24,919 Refundable deposits -4,200 4,200 Certificates of obligation 230,000 -230,000 General obligation bonds -398,174 398,174 Total current liabilities 645,093 566,526 1,211,619 Noncurrent liabilities Certificates of obligation 4,100,000 -4,100,000 General obligation bonds -1,920,870 1,920,870 Compensated absences 89,193 4,037 93,230 Post employment benefits 254,675 24,815 279,490 Net pension obligation 222,142 21,457 243,599 Total noncurent liabilites 4,666,010 1,971,179 6,637,189 Total liabilities 5,311,103 2,537,705 7,848,808 Net position Net investment in capital assets 2,024,169 2,749,826 4,773,995 Restricted For: Debt Service --- Unrestricted 12,653,279 700,268 13,353,547 Total net position 14,677,448$ 3,450,094$ 18,127,542$ CITY OF COLLEGE STATION, TEXAS Combining Statement of Net Position Nonmajor Enterprise Funds September 30, 2013 102 Sanitation Northgate Parking Garage Total Nonmajor Enterprise Funds Operating revenues Charges for services 7,387,823$ 1,226,449$ 8,614,272$ Other 20,081 1,412 21,493 Total operating revenues 7,407,904 1,227,861 8,635,765 Operating expenses Salaries and benefits 2,189,080 309,406 2,498,486 Supplies 617,903 19,703 637,606 Maintenance 468,703 22,683 491,386 Purchased professional services 663,255 134,535 797,790 Purchased property services 1,607,626 62,360 1,669,986 Other purchased services 787,005 142,949 929,954 Depreciation 483,126 270,849 753,975 Other 29,866 - 29,866 Total operating expenses 6,846,564 962,485 7,809,049 Operating income 561,340 265,376 826,716 Nonoperating revenues (expenses) Investment income 1,403 2,705 4,108 Gain (loss) on disposal of assets (206,000) (13,565) (219,565) Earnings in joint venture 404,724 - 404,724 Intergovernmental 982 - 982 Interest expense - (85,562) (85,562) Debt issuance costs - (235) (235) Other, net (186,103) 6,438 (179,665) Total nonoperating revenues (expenses) 15,006 (90,219) (75,213) Income before capital contributions and transfers 576,346 175,157 751,503 Capital contributions and transfers Capital contributions 27,099 - 27,099 Transfers in - 227,252 227,252 Transfers out (1,207,671) (75,489) (1,283,160) Total capital contributions and transfers (1,180,572) 151,763 (1,028,809) Change in net position (604,226) 326,920 (277,306) Net position - beginning 15,281,674 3,066,282 18,347,956 Prior period adjustment - 56,891 56,891 Net position - ending 14,677,448$ 3,450,093$ 18,127,541$ CITY OF COLLEGE STATION, TEXAS Combining Statement of Revenues, Expenses and Changes in Net Position Nonmajor Enterprise Funds For the Fiscal Year Ended September 30, 2013 103 Total Northgate Nonmajor Parking Enterprise Sanitation Garage Funds Cash flows from operating activities: Cash received from customers 7,471,425$ 1,282,497$ 8,753,922$ Cash payments to suppliers for goods and services (4,107,652) (387,219) (4,494,871) Cash payments to employees for services (2,080,405) (301,279) (2,381,684) Cash paid for miscellaneous services (186,103) - (186,103) Cash received for miscellaneous revenues 982 4,116 5,098 Net cash provided (used) by operating activities 1,098,247 598,115 1,696,362 Cash flows from noncapital financing activities: Transfers in from other funds - 227,252 227,252 Transfers out to other funds (1,207,671) (75,489) (1,283,160) Net cash provided (used) by noncapital financing activities (1,207,671) 151,763 (1,055,908) Cash flows from capital and related financing activities: Acquisition and construction of capital assets (27,097) (20,072) (47,169) Capital grants and contributions 27,099 - 27,099 Proceeds from sale of assets - 500 500 Principal paid on certificates of obligation and general obligation bonds - (414,528) (414,528) Interest paid on certificates of obligation and general obligation bonds (3,439) (76,301) (79,740) Net cash provided (used) by capital and related financing activities (3,437) (510,401) (513,838) Cash flows from investing activities: Purchase of investments (49,312) (211,829) (261,140) Proceeds from sale and maturities of investment securities 65,385 189,724 255,108 Investment income 1,403 2,705 4,108 Net cash provided (used) by investing activities 17,476 (19,400) (1,924) Net increase (decrease) in cash and cash equivalents (95,385) 220,077 124,692 Cash and cash equivalents, Oct. 1 265,044 532,374 797,418 Cash and cash equivalents, Sept. 30 169,659$ 752,451$ 922,110$ Reconciliation of operating income to net cash Provided by operating activities: Operating income 561,340$ 265,376$ 826,716$ Adjustment to reconcile operating income to net Cash provided (used) by operating activities: Depreciation, bad debt expense, inventory loss 483,126 270,849 753,975 Miscellaneous nonoperating revenues 982 4,116 5,098 Miscellaneous nonoperating expenses (186,103) - (186,103) Changes in assets and liabilities: Change in accounts receivable 63,521 60,262 123,783 Change in inventory 2,269 - 2,269 Change in accounts payable 71,282 (9,616) 61,666 Change in accrued liabilities (331) 5,016 4,685 Change in deferred revenue - (5,626) (5,626) Change in accrued vacation 8,462 (1,939) 6,523 Change in OPEB 45,973 4,748 50,721 Change in net pension obligation 47,726 4,929 52,655 Total adjustments 536,907 332,739 869,646 Net cash provided (used) by operating activities 1,098,247$ 598,115$ 1,696,362$ CITY OF COLLEGE STATION, TEXAS Combining Statement of Cash Flows Nonmajor Enterprise Funds For the Fiscal Year Ended September 30, 2013 104 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. 105 Employee Benefits Equipment Replacement Fleet Maintenance Property and Casualty Unemployment Utility Customer Service Workers' Compensation Total Internal Service Funds Assets Current assets Cash and cash equivalents 7,325,309$ 7,432,709$ 142,775$ 1,195,464$ 333,866$ 254,987$ 2,165,058$ 18,850,168$ Equity in investments 967,807 981,996 18,863 157,942 44,110 33,688 286,043 2,490,449 Receivable (net of allow for uncollectible) 4,020 - - - - 22,344 2,500 28,864 Inventories - - 96,610 - - - - 96,610 Total current assets 8,297,136 8,414,705 258,248 1,353,406 377,976 311,019 2,453,601 21,466,091 Capital assets Buildings --786,525 -- 654,518 - 1,441,043 Machinery and equipment - 22,245,915 280,773 -- 722,118 - 23,248,806 Less accumulated depreciation - (14,821,232) (650,129)-- (1,083,202)- (16,554,563) Total capital assets - 7,424,683 417,169 -- 293,434 - 8,135,286 Total assets 8,297,136 15,839,388 675,417 1,353,406 377,976 604,453 2,453,601 29,601,377 Liabilities Current liabilities Accounts payable 288,193 47,127 89,420 9,381 7,925 19,260 5,530 466,836 Accrued liabilities --19,488 1,830 - 26,146 2,656 50,120 Compensated absences --4,411 --4,408 -8,819 Claims payable 959,723 -- 425,458 --256,366 1,641,547 Total current liabilities 1,247,916 47,127 113,319 436,669 7,925 49,814 264,552 2,167,322 Noncurrent liabilities Compensated absences --54,103 -- 54,067 - 108,170 Post employment benefits 10,160 -112,176 13,065 - 180,110 13,039 328,550 Net pension obligation 8,736 -97,612 11,679 - 156,206 11,653 285,886 Total noncurrent liabilites 18,896 -263,891 24,744 - 390,383 24,692 722,606 Total liabilities 1,266,812 47,127 377,210 461,413 7,925 440,197 289,244 2,889,928 Net position Net investment in capital assets - 7,424,683 417,169 -- 293,434 - 8,135,286 Unrestricted 7,030,324 8,367,578 (118,962) 891,993 370,051 (129,178) 2,164,357 18,576,163 Total net position 7,030,324$ 15,792,261$ 298,207$ 891,993$ 370,051$ 164,256$ 2,164,357$ 26,711,449$ CITY OF COLLEGE STATION, TEXAS Combining Statement of Net Position Internal Service Funds September 30, 2013 106 Employee Benefits Equipment Replacement Fleet Maintenance Property and Casualty Unemployment Utility Customer Service Workers' Compensation Total Operating revenues Charges for services -$ 2,991,580$ 1,711,597$ -$ -$ 2,080,427$ -$ 6,783,604$ Premiums 8,766,515 -- 989,106 29,984 -743,283 10,528,888 Other 19,882 -624 150,206 - 171,203 - 341,915 Total operating revenues 8,786,397 2,991,580 1,712,221 1,139,312 29,984 2,251,630 743,283 17,654,407 Operating expenses Salaries and benefits 57,200 - 909,586 88,948 - 1,343,895 88,060 2,487,689 Supplies -- 870,194 -- 47,087 5,252 922,533 Maintenance -- 17,606 -- 20,153 - 37,759 Purchased professional services 82,879 -287 10,800 - 115,759 10,800 220,525 Purchased property services -- 23,604 -- 34,210 - 57,814 Other purchased services -- 56,907 -- 653,862 - 710,769 Claims 5,793,196 -- 232,125 45,463 -356,882 6,427,666 Administration fees 376,871 -- 113,871 --26,000 516,742 Contributions - 539,530 ----- 539,530 Premiums 1,015,445 -- 244,938 --102,187 1,362,570 Depreciation - 1,629,380 31,462 -- 49,447 - 1,710,288 Other 28,788 -4,938 12,177 -9,589 384 55,877 Total operating expenses 7,354,379 2,168,910 1,914,584 702,859 45,463 2,274,002 589,565 15,049,762 Operating income 1,432,018 822,670 (202,363) 436,453 (15,479) (22,372) 153,718 2,604,645 Nonoperating revenues (expenses) Investment income 30,056 32,061 732 5,254 1,579 715 9,416 79,813 Gain (loss) on disposal of assets - 242,954 ----- 242,954 Other, net 33,924 (72,429)-(6,347)--- (44,852) Total nonoperating revenues (expenses)63,980 202,586 732 (1,093)1,579 715 9,416 277,915 Income before capital contributions and transfe 1,495,998 1,025,256 (201,631) 435,360 (13,900) (21,657) 163,134 2,882,560 Capital contributions and transfers Capital contributions - 151,348 ----- 151,348 Transfers in - 288,570 ----- 288,570 Transfers out (49,375)-- (288,570)--- (337,945) Total capital contributions and transfers (49,375) 439,918 - (288,570)--- 101,973 Change in net position 1,446,623 1,465,174 (201,631) 146,790 (13,900) (21,657) 163,134 2,984,533 Net position-beginning 5,583,701 14,327,087 499,838 745,203 383,951 185,913 2,001,223 23,726,916 Net position-ending 7,030,324$ 15,792,261$ 298,207$ 891,993$ 370,051$ 164,256$ 2,164,357$ 26,711,449$ CITY OF COLLEGE STATION, TEXAS Combining Statement of Revenues, Expenses and Changes in Net Position Internal Service Fund For the Fiscal Year Ended September 30, 2013 107 Total Internal Employee Equipment Fleet Property and Utility Customer Workers' Service Benefits Replacement Maintenance Casualty Unemployment Service Compensation Funds Cash Flows from operating activities: Cash received from customers 8,785,979$ 2,991,580$ 1,712,221$ 1,150,372$ 29,984$ 2,253,460$ 743,283$ 17,666,879$ Cash payments to suppliers for goods and services (7,214,732) (495,244) (957,175) (841,581) (37,538) (866,850) (508,921) (10,922,041) Cash payments to employees for services (56,025) - (862,218) (84,600) - (1,280,892) (83,602) (2,367,337) Cash paid for miscellaneous services - (72,429) - (6,347) - - - (78,776) Cash received for miscellaneous revenues 33,924 - - - - - - 33,924 Net cash provided (used) by operating activities 1,549,146 2,423,907 (107,172) 217,844 (7,554) 105,718 150,760 4,332,649 Cash flows from noncapital financing activities: Transfers out to other funds (49,375) 288,570 - (288,570) - - - (49,375) Net cash provided (used) by noncapital financing activities (49,375) 288,570 - (288,570) - - - (49,375) Cash flows from capital and related financing activities: Capital contributions - 151,348 - - - - - 151,348 Acquisition and construction of capital assets - (1,730,651) - - - - - (1,730,651) Proceeds from sale of assets - 242,954 - - - - - 242,954 Net cash provided (used) by capital and related financing activities - (1,336,349) - - - - - (1,336,349) Cash flows from investing activities: Purchase of investments (2,069,935) (2,101,627) (41,615) (340,745) (95,048) (71,556) (614,510) (5,335,037) Proceeds from sale and maturities of investment securities 1,959,713 2,008,056 56,744 362,717 99,623 60,975 618,956 5,166,785 Investment income 30,056 32,061 732 5,254 1,579 715 9,416 79,813 Net cash provided (used) by investing activities (80,166) (61,510) 15,861 27,226 6,154 (9,866) 13,862 (88,439) Net increase (decrease) in cash and cash equivalents 1,419,605 1,314,618 (91,311) (43,500) (1,400) 95,852 164,622 2,858,486 Cash and cash equivalents, Oct. 1 5,905,704 6,118,091 234,086 1,238,964 335,266 159,135 2,000,436 15,991,682 Cash and cash equivalents, Sept. 30 7,325,309$ 7,432,709$ 142,775$ 1,195,464$ 333,866$ 254,987$ 2,165,058$ 18,850,168$ Reconciliation of operating income to net cash Provided by operating activities: Operating income 1,432,018$ 822,670$ (202,363)$ 436,453$ (15,479)$ (22,372)$ 153,718$ 2,604,645$ Adjustment to reconcile operating income to net Cash provided (used) by operating activities: Depreciation, bad debt expense, inventory loss - 1,629,380 31,462 - - 49,447 - 1,710,289 Miscellaneous nonoperating revenues 33,924 - - - - - - 33,924 Miscellaneous nonoperating expenses - (72,429) - (6,347) - - - (78,776) Changes in assets and liabilities: Change in accounts receivable (418) - - 11,060 - 1,830 - 12,472 Change in inventory - - (12,313) - - - - (12,313) Change in accounts payable (139,943) 44,286 28,390 (139,695) 7,925 13,466 1,362 (184,209) Change in claims payable 222,390 - - (87,975) - - (8,778) 125,637 Change in accrued liabilities (1,515) - 4,501 219 - 1,200 380 4,785 Change in accrued vacation - - 3,785 - - 4,507 - 8,292 Change in OPEB 1,320 - 19,315 2,026 - 28,281 2,001 52,943 Change in net pension obligation 1,370 - 20,051 2,103 - 29,359 2,077 54,960 Total adjustments 117,128 1,601,237 95,191 (218,609) 7,925 128,090 (2,958) 1,728,004 Net cash provided (used) by operating activities 1,549,146$ 2,423,907$ (107,172)$ 217,844$ (7,554)$ 105,718$ 150,760$ 4,332,649$ CITY OF COLLEGE STATION, TEXAS Combining Statement of Cash Flows Internal Service Funds For the Fiscal Year Ended September 30, 2013 108 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. 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 110-116) 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 117-124) 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 125-129) 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 130-135) 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. 109 2004200520062007200820092010201120122013Governmental activities Net investment in capital assets 100,066,963$ 105,859,949$ 108,287,795$ 113,750,039$ 114,935,845$ 143,530,290$ 153,397,767$ 145,546,799$ 149,875,513$ 153,214,549$ Restricted 4,289,623 4,289,531 4,564,184 5,089,422 6,357,013 8,077,876 10,201,722 25,565,107 13,606,487 16,751,846 Unrestricted 25,962,837 27,897,090 39,602,065 45,967,901 59,703,654 37,712,097 37,359,741 27,695,418 39,065,396 40,964,678 Total governmental activities net postion 130,319,423$ 138,046,570$ 152,454,044$ 164,807,362$ 180,996,512$ 189,320,263$ 200,959,230$ 198,807,324$ 202,547,396$ 210,931,073$ Business-type activities Net investment in capital assets 130,810,275$ 132,001,489$ 142,778,246$ 147,043,092$ 145,066,758$ 147,627,129$ 161,365,075$ 175,059,669$ 179,123,899$ 189,315,182$ Restricted 2,651,325 2,797,735 2,920,980 3,056,356 1,590,977 3,119,691 1,588,631 1,588,631 1,580,992 1,580,992 Unrestricted 29,665,429 30,830,640 32,980,043 37,474,945 43,957,844 47,397,414 38,818,705 35,213,377 38,597,823 36,847,830 Total business-type activities net postion 163,127,029$ 165,629,864$ 178,679,269$ 187,574,393$ 190,615,579$ 198,144,234$ 201,772,411$ 211,861,677$ 219,302,714$ 227,744,004$ Primary government Net investment in capital assets 230,877,238$ 237,861,438$ 251,066,041$ 260,793,131$ 260,002,603$ 291,157,419$ 314,762,842$ 320,606,468$ 328,999,412$ 342,529,731$ Restricted6,940,948 7,087,266 7,485,164 8,145,778 7,947,990 11,197,567 11,790,353 27,153,738 15,187,479 18,332,838 Unrestricted55,628,266 58,727,730 72,582,108 83,442,846 103,661,498 85,109,511 76,178,446 62,908,795 77,663,219 77,812,508 Total primary government net position293,446,452$ 303,676,434$ 331,133,313$ 352,381,755$ 371,612,091$ 387,464,497$ 402,731,641$ 410,669,001$ 421,850,110$ 438,675,077$ Source: City of College StationFiscal YearCITY OF COLLEGE STATION, TEXASNET POSITION BY COMPONENTLAST TEN FISCAL YEARS(accrual basis of accounting) 110 2004200520062007200820092010201120122013ExpensesGovernmental activities: General government7,536,427$ 6,457,556$ 7,755,725$ 7,654,393$ 8,551,304$ 8,631,908$ 11,534,705$ 9,455,960$ 8,348,922$ 9,167,476$ Fiscal services1,953,189 2,467,187 2,452,442 2,442,439 2,977,362 3,821,996 4,127,990 3,384,388 3,313,726 3,263,269 Police9,654,447 10,666,318 11,214,413 12,299,698 13,395,874 13,945,079 16,063,347 15,082,452 16,696,975 16,831,233 Fire7,189,495 7,853,876 8,280,257 9,472,331 11,359,260 11,778,585 13,301,029 11,749,054 13,706,222 13,748,434 Planning and development services1,586,114 1,580,317 1,449,327 1,603,963 1,910,359 2,823,296 2,952,177 3,364,877 4,912,517 4,334,608 Public works5,004,976 5,401,568 6,227,707 6,620,846 9,467,081 16,804,436 17,026,827 20,629,662 13,717,564 15,371,773 Capital projects- - - - 719,391 476,462 256,177 648,589 819,296 733,974 Parks and recreation6,154,862 6,549,466 7,353,984 8,235,984 9,391,993 10,136,521 11,202,863 10,146,043 9,638,581 8,983,919 Library- - 870,203 912,527 993,102 1,052,838 1,103,864 1,130,433 1,142,580 1,064,293 Information services2,652,957 2,881,863 2,280,393 2,689,720 2,749,327 3,471,714 5,048,720 4,165,064 4,268,524 4,565,385 Interest on long-term debt3,448,533 3,895,520 4,116,871 4,291,022 3,860,801 4,135,146 4,111,523 4,079,379 3,273,938 2,949,240 Unallocated depreciation2,690,998 5,430,745 5,759,049 6,026,372 667,890 789,074 1,047,906 1,130,283 1,149,609 1,146,119 Total governmental activities expense47,871,998 53,184,416 57,760,371 62,249,295 66,043,744 77,867,055 87,777,128 84,966,184 80,988,454 82,159,723 Business-type activities: Electric41,120,750 47,815,339 51,250,110 60,242,408 70,485,984 77,441,351 88,685,699 93,277,853 87,221,859 88,438,115 Water6,542,184 7,908,695 7,770,081 8,302,863 8,706,415 9,287,343 10,190,159 9,960,837 11,132,787 11,662,862 Wastewater7,214,296 7,262,208 7,973,677 8,179,813 9,159,176 9,829,813 10,604,983 10,114,867 10,952,853 11,370,918 Sanitation4,848,591 4,931,079 5,421,624 5,916,431 6,244,639 5,776,002 6,527,724 6,558,278 7,825,491 6,301,053 Northgate parking61,150 - - - - - - - - - Total business-type activities expense550,544 591,944 621,593 591,980 668,237 909,167 1,019,393 944,125 924,532 1,053,839 Total primary government expense60,337,515 68,509,265 73,037,085 83,233,495 95,264,451 103,243,676 117,027,958 120,855,960 118,057,522 118,826,787 108,209,513$ 121,693,681$ 130,797,456$ 145,482,790$ 161,308,195$ 181,110,731$ 204,805,086$ 205,822,144$ 199,045,976$ 200,986,510$ Program revenuesGovernmental activities: Charges for services: Fines, forfeits and penalties3,563,970$ 4,008,637$ 3,798,807$ 3,618,236$ 3,798,313$ 4,491,960$ 4,500,447$ 4,120,077$ 3,896,477$ 3,462,197$ Licenses and permits1,215,924 1,043,672 1,091,848 1,306,690 1,154,902 1,007,151 964,344 1,091,983 1,496,989 1,240,300 Public works1,784,694 1,110,686 1,290,935 1,199,565 1,255,525 1,793,174 1,895,263 2,910,293 2,480,140 2,489,828 Parks and recreation1,346,580 1,044,134 1,244,476 1,420,284 1,911,789 1,838,810 1,722,840 2,007,032 1,909,008 1,773,554 Other activities1,614,408 2,002,338 2,656,136 3,210,563 3,548,309 4,494,627 3,378,603 2,516,446 2,506,187 2,903,460 Operating grants and contributions3,208,957 2,629,494 3,144,254 2,038,535 1,735,170 1,896,623 1,694,228 1,875,849 2,766,187 1,753,970 Capital grants and contributions5,266,837 4,489,883 7,477,874 5,271,090 3,055,501 2,644,629 19,587,921 3,964,442 4,216,095 7,016,449 Total governmental activities program revenues18,001,370 16,328,844 20,704,330 18,064,963 16,459,509 18,166,974 33,743,646 18,486,122 19,271,083 20,639,758 Business-type activities: Charges for services: Electric sales47,431,497 51,467,169 60,217,421 67,462,075 76,787,412 82,904,777 91,162,890 101,617,743 96,787,784 95,737,007 Water sales8,319,779 9,519,714 10,852,660 10,060,398 12,025,086 17,312,431 12,745,173 17,253,787 15,274,883 15,775,334 Sewer service9,334,778 9,697,314 10,363,603 10,590,688 11,184,565 11,655,528 11,522,025 13,099,783 13,697,532 14,566,975 Garbage collection fees4,829,150 5,151,204 6,419,446 7,512,194 9,628,798 7,988,795 7,299,273 7,143,536 7,204,013 7,205,029 Parking garage fees603,465 480,627 576,892 620,124 673,818 990,735 1,140,833 1,189,443 1,149,277 1,234,799 Operating grants and contributions- - - - - 17,792 - 3,746 9,718 982 Capital grants and contributions5,179,221 1,937,320 4,677,465 4,041,105 5,349,125 6,846,033 11,703,035 3,857,585 6,890,916 5,345,176 Total business-type activities program revenues75,697,890 78,253,348 93,107,487 100,286,584 115,648,804 127,716,091 135,573,229 144,165,623 141,014,123 139,865,302 Total primary government program revenues93,699,260$ 94,582,192$ 113,811,817$ 118,351,547$ 132,108,313$ 145,883,065$ 169,316,875$ 162,651,745$ 160,285,206$ 160,505,060$ Fiscal YearCITY OF COLLEGE STATION, TEXASCHANGES IN NET POSITIONLAST TEN FISCAL YEARS(accrual basis of accounting) 111 2004200520062007200820092010201120122013Net (Expense)/RevenueGovernmental activities (29,870,628)$ (36,855,572)$ (37,056,041)$ (44,184,332)$ (49,584,235)$ (59,700,081)$ (54,033,482)$ (66,480,062)$ (61,717,371)$ (61,519,965)$ Business-type activities 15,360,375 9,744,083 20,070,402 17,053,089 20,384,355 24,472,415 18,545,271 23,309,663 22,956,601 21,038,515 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)$ (43,170,399)$ (38,760,770)$ (40,481,450)$ General Revenues and Other Changes in Net AssetsGovernmental 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$ 24,333,373$ 24,978,388$ 26,451,943$ 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 20,717,598 21,878,057 23,506,772 Franchise taxes 1,974,587 1,718,491 2,132,341 1,931,196 2,090,779 2,217,618 2,210,902 2,153,827 2,171,277 2,209,091 Hotel taxes 2,191,429 2,306,928 2,671,417 2,980,250 3,585,512 3,574,649 3,387,041 3,558,042 3,643,887 4,393,867 Unrestricted investment earnings 1,224,546 1,487,926 3,415,849 4,512,575 3,385,844 1,413,431 265,424 368,868 283,648 252,308 Gain (Loss) on sale of capital assets 4,386 (111,916) - - - - (24,596) - - Correction to value of capital assets - (601,000) - - - - - - - - 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 13,562,095 12,502,186 12,039,798 Total governmental activities33,493,538 44,582,719 50,799,515 56,537,650 57,533,385 62,627,252 65,672,449 64,693,803 65,457,443 68,853,779 Business-type activities: Unrestricted investment earnings662,359 947,477 1,829,456 1,932,624 1,330,785 654,882 420,236 341,698 316,035 174,170 Transfers2,108,473 - - - - - - - - Total business-type activities 904,783 (8,188,725) (8,850,453) (10,090,589) (10,433,954) (12,778,642) (15,337,330) (13,562,095) (12,502,186) (12,039,798) Total primary government 3,675,615 (7,241,248) (7,020,997) (8,157,965) (9,103,169) (12,123,760) (14,917,094) (13,220,397) (12,186,151) (11,865,628) 37,169,153$ 37,341,471$ 43,778,518$ 48,379,685$ 48,430,216$ 50,503,492$ 50,755,355$ 51,473,406$ 53,271,292$ 56,988,151$ Change in net positionGovernmental activities 3,622,910$ 7,727,147$ 13,743,474$ 12,353,318$ 7,949,150$ 2,927,171$ 11,638,967$ (1,786,259)$ 3,740,072$ 7,333,814$ Business-type activities 19,035,990 2,502,835 13,049,405 8,895,124 11,281,186 12,348,655 3,628,177 10,089,266 10,770,450 9,172,887 Total primary government 22,658,900$ 10,229,982$ 26,792,879$ 21,248,442$ 19,230,336$ 15,275,826$ 15,267,144$ 8,303,007$ 14,510,522$ 16,506,701$ Source: City of College StationCorrection to value of capital assets in fiscal year 2004 is prior period adjustment.Correction to value of capital assets in fiscal years 2004 and 2005 are prior period adjustments.Adjustment to claims payable in fiscal year 2004 is a prior period adjustment.Fiscal YearCITY OF COLLEGE STATION, TEXASCHANGES IN NET POSITION - ContinuedLAST TEN FISCAL YEARS(accrual basis of accounting) 112 2004200520062007200820092010201120122013Function/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$ 1,281,849$ 2,095,173$ 1,593,295$ Fiscal services 333,043 508,810 547,790 409,100 684,666 38,377 100,495 215,626 542,689 666,103 Police 3,677,391 4,093,425 3,875,900 3,713,866 4,533,697 5,004,712 5,161,486 4,596,713 4,174,931 3,650,964 Fire 724,278 916,804 817,910 1,400,464 1,137,759 3,551,620 2,199,375 1,952,851 1,936,311 1,948,961 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 1,296,213 1,650,017 1,493,021 Public works 7,051,531 5,600,569 8,768,809 6,470,655 4,312,571 4,445,595 15,313,779 5,796,384 5,609,036 8,711,394 Capital improvement program - - - - - - 951,686 - 52,757 - Library - - - - - - - - 13,200 - Information technology - - - - - - - 15,500 - - Parks and recreation 1,380,325 1,044,134 1,244,476 1,420,284 1,932,001 2,117,227 3,816,773 3,330,986 3,196,969 2,576,020 Subtotal governmental activities18,001,370 16,328,844 20,704,330 18,064,963 16,459,509 18,166,974 33,743,646 18,486,122 19,271,083 20,639,758 Business-type activities: Electric48,032,185 52,780,914 62,284,935 69,033,816 77,419,441 84,552,573 92,530,434 102,516,252 98,200,411 96,283,238 Water10,260,307 9,826,360 12,409,728 11,314,888 14,115,391 19,065,662 17,118,922 18,710,635 16,905,503 19,167,542 Wastewater11,972,783 10,014,243 11,416,486 11,805,562 13,811,356 15,100,534 15,208,551 14,584,557 15,844,190 15,946,613 Sanitation4,829,150 5,151,204 6,419,446 7,512,194 9,628,798 8,006,587 9,574,489 7,147,282 8,914,742 7,233,110 Northgate parking603,465 480,627 576,892 620,124 673,818 990,735 1,140,833 1,206,897 1,149,277 1,234,799 Subtotal business-type activities75,697,890 78,253,348 93,107,487 100,286,584 115,648,804 127,716,091 135,573,229 144,165,623 141,014,123 139,865,302 Total primary government93,699,260$ 94,582,192$ 113,811,817$ 118,351,547$ 132,108,313$ 145,883,065$ 169,316,875$ 162,651,745$ 160,285,206$ 160,505,060$ Source: City of College StationFiscal YearCITY OF COLLEGE STATION, TEXASPROGRAM REVENUES BY FUNCTION/PROGRAMLAST TEN FISCAL YEARS(accrual basis of accounting) 113 2004200520062007200820092010201120122013General fund Nonspendable -$ -$ -$ -$ -$ 62,390$ 70,516$ 58,548$ -$ 59,426$ Restricted- - - - - 95,220 849,622 925,798 868,799 266,573 Assigned- - - - - 1,663,400 1,794,416 537,586 436,979 972,632 Unassigned- - - - - 7,557,419 11,101,327 12,871,125 15,186,915 14,626,901 Reserved1,089,510 1,132,180 1,523,619 1,108,449 2,305,476 - - - - - Unreserved9,613,442 9,038,345 9,448,389 11,824,140 9,679,913 - - - - - Total general fund10,702,952$ 10,170,525$ 10,972,008$ 12,932,589$ 11,985,389$ 9,378,429$ 13,815,881$ 14,393,057$ 16,492,693$ 15,925,532$ All other governmental funds Nonspendable-$ -$ -$ -$ -$ 859,654$ 8,235,642$ 7,890,137$ 6,943,250$ 6,667,812$ Restricted- - - - - 39,375,368 54,421,910 27,404,127 35,688,123 39,327,653 Commited - - - - - 2,627,403 2,764,227 3,149,243 3,618,354 4,008,439 Assigned- - - - - 609,113 - - - - Unassigned- - - - - 545,024 - - - - Reserved42,522,379 42,999,111 49,111,974 46,372,274 48,819,538 - - - - - Unreserved, reported in: Special revenue funds6,085,255 6,244,225 7,462,140 10,148,840 11,526,009 - - - - - Total all other governmental funds48,607,634$ 49,243,336$ 56,574,114$ 56,521,114$ 60,345,547$ 44,016,562$ 65,421,779$ 38,443,507$ 46,249,727$ 50,003,904$ Source: City of College Station Note: The City implemented GASB Statement 54 in 2009; schedules presenting governmental fund balance reclassifications begin in that year.CITY OF COLLEGE STATION, TEXASFUND BALANCES, GOVERNMENTAL FUNDSLAST TEN FISCAL YEARS(modified accrual basis of accounting)Fiscal Year 114 2004200520062007200820092010201120122013RevenuesTaxes 34,073,652$ 35,618,984$ 38,533,213$ 41,934,486$ 46,588,376$ 48,435,179$ 49,901,803$ 50,762,840$ 52,671,608$ 55,652,419$ Licenses and permits 1,112,766 1,025,013 945,593 1,191,105 1,154,902 1,007,151 964,344 1,091,983 1,496,989 1,240,300 Intergovernmental 3,208,957 2,592,312 3,144,254 2,038,535 1,707,957 1,896,623 5,022,822 2,143,573 2,759,219 1,749,805 Charges for services 2,538,583 2,634,683 2,925,281 3,339,352 3,790,147 3,543,064 6,042,105 6,113,497 5,616,379 5,918,397 Fines, forfeits and penalties 2,966,278 3,518,940 3,285,907 3,256,488 3,798,313 4,491,960 4,500,447 4,120,077 3,896,477 3,462,197 Special assessments 1,062,179 1,110,686 1,290,935 1,199,565 1,255,525 1,793,174 - - - - Investment income 1,062,069 1,269,201 3,066,642 3,864,797 2,886,636 1,125,382 206,648 368,868 283,648 252,308 Rents and royalties 256,023 243,831 244,864 261,225 279,004 769,150 749,635 589,528 852,738 753,401 Loan repayments 5,418 2,541 - - - - - - - - Contributions 784,402 37,182 12,281 31,605 27,213 26,997 605,953 825,532 1,244,973 799,048 Reimbursed expenditures28,393 - 145,749 479,675 46,038 413,751 - - - - Other revenues679,349 631,192 447,432 738,415 1,046,431 403,548 267,695 730,747 426,218 312,473 Total revenues47,778,069 48,684,565 54,042,151 58,335,248 62,580,542 63,905,979 68,261,452 66,746,645 69,248,249 70,140,348 ExpendituresGeneral government4,187,972 4,480,075 4,216,582 4,699,159 7,319,662 5,435,355 7,401,157 6,438,313 4,102,550 3,825,760 Fiscal services2,479,082 3,038,145 3,050,533 3,013,548 3,573,686 3,836,786 3,635,009 3,353,387 3,106,265 3,205,204 Police9,803,577 10,829,081 11,559,669 12,556,678 13,219,117 14,107,740 13,816,620 14,931,212 15,521,284 16,550,111 Fire7,275,289 7,964,785 8,493,228 9,622,195 11,251,400 11,754,088 11,418,948 11,444,702 12,578,396 13,297,527 Planning and development services1,964,001 1,962,603 1,877,732 2,008,901 2,281,747 2,871,341 2,568,464 3,327,495 4,698,749 4,268,854 Public works5,534,404 6,117,241 7,116,329 7,440,854 7,182,443 7,920,003 7,123,885 6,677,986 7,343,092 7,397,942 Capital improvement projects- - - - 715,707 476,462 132,880 648,589 788,032 733,974 Economic and community development16,886 11,281 - - - - - - - - Parks and recreation6,388,099 6,778,196 7,520,189 8,167,857 9,071,198 9,355,301 8,930,388 9,388,765 8,131,413 7,883,904 Information systems2,346,534 2,500,518 2,596,591 3,070,524 3,366,764 3,299,105 3,887,102 3,902,082 3,844,107 4,271,209 Library665,291 694,445 870,203 912,527 993,102 1,119,771 1,080,030 1,061,581 1,072,551 994,476 Reimbursed administrative(3,328,431) (3,485,807) (3,335,264) (3,305,040) (3,772,362) - - - - - Claims- - - - - - 1,600,000 - - - Contributions2,504,589 1,895,742 1,995,564 1,855,961 2,151,592 2,489,562 2,266,558 2,063,489 2,435,820 2,800,159 Community development block grant201,099 275,775 340,399 215,707 - - - - - - Home grant304,580 439,243 840,211 323,811 - - - - - - Community development grant- - - - - - - - - - Other expenditures253,270 296,344 108,527 147,860 204,338 487,163 438,757 750,135 1,380,837 1,964,156 Capital outlay12,775,413 15,435,376 11,610,189 14,213,574 19,538,322 31,931,401 9,765,151 11,501,926 14,341,717 8,802,719 Fiscal YearCITY OF COLLEGE STATION, TEXASCHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS(modified accrual basis of accounting) 115 2004200520062007200820092010201120122013Debt service Principal 10,110,000 6,190,000 7,285,000 7,820,000 8,530,000 7,935,000 8,050,000 8,085,412 8,120,000 8,245,000 Interest 3,376,538 3,885,075 4,078,635 4,212,245 3,892,490 4,114,356 4,133,633 3,698,324 3,696,245 3,747,520 Issuance costs 352,114 118,261 - - - - - - - 154,660 Fiscal charges 15,332 13,871 152,729 527,806 70,796 46,551 227,765 384,196 127,671 - Intergovernmental 221,902 97,621 743,117 342,630 881,604 745,908 - 924,941 294,103 301,061 Total expenditures 67,447,541 69,537,871 71,120,163 77,846,797 90,471,606 107,925,893 86,476,347 88,582,535 91,582,832 88,444,236 Deficiency of revenues under expenditures(19,669,472) (20,853,306) (17,078,012) (19,511,549) (27,891,064) (44,019,914) (18,214,895) (21,835,890) (22,334,583) (18,303,888) Other Financing Sources (Uses)Proceeds from long-term debt 16,375,000 13,347,581 15,700,000 7,890,000 19,970,000 9,815,000 20,685,000 1,977,134 11,727,994 14,505,000 Proceeds from refunding bonds 5,980,000 - - 10,255,000 - - 4,265,000 11,250,000 - - Payment to bond escrow agent(6,260,371) - - (10,451,378) - - (4,283,647) (12,322,570) - - Advance Refunding- - - - - - - - (11,432,308) (6,054,452) Premium on bonds issued280,371 - - 373,648 - - 75,183 1,172,234 1,132,812 951,174 Sale of capital assets4,386 12,182 17,500 318,103 10,981 505,606 5,615 8,690 - - Transfers in10,945,210 11,476,019 11,864,435 15,054,935 13,828,414 22,680,922 16,054,544 19,382,145 22,313,561 18,629,471 Transfers out(11,566,702) (3,879,201) (2,371,662) (2,021,178) (3,041,098) (8,494,139) (673,081) (7,783,625) (9,385,160) (6,540,298) Total other financing sources15,757,894 20,956,581 25,210,273 21,419,130 30,768,297 24,507,389 36,128,614 13,684,008 14,356,899 21,490,895 Net change in fund balances(3,911,578)$ 103,275$ 8,132,261$ 1,907,581$ 2,877,233$ (19,512,525)$ 17,913,719$ (8,151,882)$ (7,977,684)$ 3,187,007$ Debt services as a percentage of noncapital expenditures24.7%18.6%19.1%18.9%17.5%15.9%15.9%15.3%15.3%15.1%Source: City of College StationFiscal YearLAST TEN FISCAL YEARS(modified accrual basis of accounting)CITY OF COLLEGE STATION, TEXASCHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS - Continued 116 Fiscal Year Property Sales Hotel Franchise Mixed Drink Total2004 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 2011 24,333,373 20,292,871 3,558,042 2,153,827 424,727 50,762,840 2012 24,978,388 21,498,319 3,643,887 2,171,277 379,737 52,671,608 2013 25,542,689 23,064,035 4,393,867 2,209,091 442,737 55,652,419 Change2004-201374.1% 54.2% 100.5% 11.9% 57.4% 63.3%Source: City of College StationNotes: Property taxes include general fund, debt service fund 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) 117 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 Value2004 2,144,406,477$ 723,887,327$ 653,978,324$ 493,364,734$ 39,971,363$ 2,988,936,031$ 0.465300 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 0.464000 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 0.439400 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 0.439400 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 0.439400 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 0.439400 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 0.439400 5,321,417,589 100.00%2011 4,087,540,319 1,209,126,533 1,029,151,665 870,386,056 - 5,455,432,461 0.447543 5,455,432,461 100.00%2012 4,280,768,585 1,295,254,729 1,069,727,466 907,135,778 - 5,738,615,002 0.437995 5,738,615,002 100.00%2013 4,466,234,632 1,321,942,044 1,185,964,447 1,029,828,136 - 5,944,312,987 0.430687 5,944,312,987 100.00%Source: Brazos County Appraisal DistrictNotes: Assessed value is 100% of the estimated actual value.CITY OF COLLEGE STATION, TEXASASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTYLAST TEN FISCAL YEARS(1) Tax increment financing district (TIF). 118 General Total College Fiscal Basic Obligation Direct Station Brazos Year Rate Debt Service Rate ISD County 2004 0.192100 0.273200 0.465300 1.770000 0.435000 2005 0.194200 0.269800 0.464000 1.770000 0.472600 2006 0.189600 0.249800 0.439400 1.675000 0.465000 2007 0.191000 0.248400 0.439400 1.480000 0.455000 2008 0.191000 0.248400 0.439400 1.241050 0.465000 2009 0.193352 0.246048 0.439400 1.221100 0.480000 2010 0.209967 0.229433 0.439400 1.253413 0.480000 2011 0.227349 0.220194 0.447543 1.309933 0.485600 2012 0.236459 0.201536 0.437995 1.335033 0.485000 2013 0.235052 0.195635 0.430687 1.335033 0.485000 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/$100 of assessed value for each jurisdiction by State Statute. This limit is for both operations and debt service combined. 119 Percent of Percent of of Total Cityof Total CityTaxableTaxableTaxableTaxable2012 AssessedAssessed2003 AssessedAssessedTaxpayerValue Rank ValueValue Rank ValueC.B.L. & Associates (Post Oak Mall)57,025,440$ 10.96%49,331,205$ 11.65%College Station Hospital LP56,167,890 20.94%31,254,230 31.05%SHP-The Callaway House LP48,525,670 30.82%BVP 2818 Place, LP41,197,320 40.69%Wal-Mart Real Estate Business Trust40,765,700 50.69%24,916,345 50.83%SW Meadows Point LP40,102,200 60.67%Woodlands of College Station39,816,500 70.67%Jefferson Enclave LP39,607,120 80.67%JamesPoint Management39,165,800 90.66%Weinberg, Isreal & David Alkosser38,103,080 100.64%31,168,425 41.04%Fairfield College Station, LP- 17,514,700 90.59%Verizon Communications, Inc.- 34,528,500 21.16%Melrose Apartments- 17,753,830 80.59%HE Butt Store Property Co. - 18,912,125 60.63%University Commons- 17,279,200 100.58%301 Church Avenue, LP- 17,936,445 70.60%Source: Brazos County Appraisal DistrictCITY OF COLLEGE STATION, TEXASPRINCIPAL PROPERTY TAXPAYERSCURRENT YEAR AND NINE YEARS AGO20132004 120 Fiscal Year Taxes LeviedCollectionsEnded for thePercentage in SubsequentPercentageSept 30 Fiscal Year Amount of Levy YearsAmountof Levy2004 14,092,814$ 13,974,666$ 99.16% 107,817$ 14,082,483$ 99.93%2005 15,270,852 15,160,102 99.27% 103,008 15,263,110 99.95%2006 16,162,073 15,938,981 98.62% 146,423 16,085,404 99.53%2007 17,818,419 17,697,220 99.32% 42,523 17,739,743 99.56%2008 19,973,882 19,773,036 98.99% 114,967 19,888,003 99.57%2009 22,076,134 21,795,748 98.73% 182,874 21,978,622 99.56%2010 23,623,086 23,435,105 99.20% 60,952 23,496,058 99.46%2011 24,323,279 24,136,088 99.23% 55,352 24,191,440 99.46%CITY OF COLLEGE STATION, TEXASPROPERTY TAX LEVIES AND COLLECTIONSLAST TEN FISCAL YEARSCollected within theFiscal Year of the Levy Total Collections to Date,,,,,,,2012 24,979,685 24,762,625 99.13% 14,774 24,777,399 99.19%2013 25,503,096 25,326,360 99.31%- 25,326,360 99.31%Sources: City of College Station and Brazos County Tax Office 121 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012Utilities 14,929$ 14,943$ 16,684$ 19,336$ 22,403$ 25,483$ 26,442$ 27,724$ 32,048$ 29,102$ Construction 5,500 6,477 12,076 13,918 15,818 15,768 10,617 10,070 10,900 12,743 Manufacturing 7,921 9,323 12,926 13,066 13,200 16,391 12,221 9,620 6,823 7,433 Wholesale Trade 12,332 24,173 25,939 17,482 8,759 13,761 9,856 10,770 19,556 23,573 Retail Trade 513,638 529,284 563,662 608,940 686,271 693,673 653,561 678,041 699,715 738,897 Information 15,312 16,092 14,409 14,082 12,148 15,427 15,654 16,907 16,984 18,261 Finance and Insurance 55 119 130 216 541 752 706 840 1,043 1,044 Real Estate and Rental/Leasing 11,032 12,258 12,024 15,679 16,249 18,326 9,288 9,456 9,314 9,785 Professional, Scientific and Tech Services 7,660 8,618 8,692 9,530 11,074 26,234 25,694 13,142 12,901 12,716 Administrative, Support, Waste Mgmt, Remediation 14,703 14,655 15,133 16,462 15,054 18,362 17,610 16,831 17,381 19,645 Educational Services93 22,981 26,252 2,209,091 32,502 27,645 35,351 34,952 37,434 43,135 Health Care and Social Assistance1,721 1,951 2,547 2,873 4,051 2,888 2,301 2,049 1,920 2,116 Arts, Entertainment and Recreation5,480 6,173 6,781 6,949 7,399 9,168 8,671 8,470 9,325 9,488 Accommodation and Food Services137,440 147,277 158,267 169,900 185,723 205,967 204,731 208,597 217,445 238,186 Other Services36,954 34,563 38,894 17,069 14,539 15,782 15,338 15,890 16,274 18,594 Total784,770$ 848,887$ 914,416$ 3,134,593$ 1,045,731$ 1,105,627$ 1,048,041$ 1,063,359$ 1,109,063$ 1,184,717$ City direct sales tax rate1 50%1 50%1 50%1 50%1 50%1 50%1 50%1 50%1 50%1 50%CITY OF COLLEGE STATION, TEXASTAXABLE SALES BY CATEGORYLAST TEN CALENDAR YEARS(in thousands of dollars)City direct sales tax rate1.50%1.50%1.50%1.50%1.50%1.50%1.50%1.50%1.50%1.50%Source: Texas State Comptroller of Public AccountsNotes: Taxable sales information is not available on a fiscal-year basis. The state converted from reporting SICS classification of industries to NAICS classification of industries effective with the reporting year 2002 122 City Brazos State of Fiscal Year Direct Rate County Texas 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% 2011 1.50% 0.50% 6.25% 2012 1.50% 0.50% 6.25% 2013 1.50% 0.50% 6.25% Source: Texas State Comptroller of Public Accounts CITY OF COLLEGE STATION, TEXAS DIRECT AND OVERLAPPING SALES TAX RATES LAST TEN FISCAL YEARS 123 Number Percentage Tax Percentage Number Percentage Tax Percentageof Outlets of Total Liability of Total of Outlets of Total Liability of TotalRetail trade 1,001 64.21% 9,766$ 82.97% 1,310 57.09% 14,656$ 82.48%Services 167 10.71% 345 2.93% 301 13.11% 465 2.63%Wholesale trade 41 2.63% 200 1.70%88 3.83% 354 1.99%Utilities, transportation, communications9 0.58% 734 6.24%15 0.65% 705 3.97%Manufacturing43 2.76% 119 1.00%96 4.18% 111 0.63%Construction67 4.30% 82 0.71%124 5.40% 191 1.08%Agriculture, forestry, and fishing5 0.32%2 0.01%4 0.17%0 0.00%Finance, insurance, real estate35 2.25% 166 1.41%64 2.79% 162 0.91%All other outlets191 12.25% 356 3.03%293 12.78% 1,125 6.33%Total1,559 100.00% 11,771$ 100.00% 2,295 100.00% 17,769$ 100.00%Source: Texas State Comptroller of Public AccountsCalendar Year 2003Calendar Year 2012CITY OF COLLEGE STATION, TEXASSALES TAX REVENUE PAYERS BY INDUSTRYCALENDAR YEARS 2003 AND 2012(dollars are in thousands)Notes: Tax liability information is not available on a fiscal-year basis. 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. 124 GeneralUtilityUtility Revenue Utility RevenueTotalPercentageFiscalObligation Certificates ofRevenueCertificatesGeneralCertificatesGeneralPrimary of Personal PerYearBondsObligationBondsof Obligation Obligation Bonds of Obligation Obligation Bonds Government Income Capita200447,085,000$ 34,705,000$ 75,655,000$ -$ -$ -$ -$ 157,445,000$ - 2,011$ 200549,800,000 30,195,000 79,215,000 - - 8,910,000 - 168,120,000 - 2,096 200653,835,000 34,905,000 91,460,000 - - 8,580,000 - 188,780,000 - 2,304 200755,720,000 33,500,000 105,215,000 - - 8,240,000 - 202,675,000 16.52% 2,409 200860,695,000 39,965,000 99,560,000 - - 23,820,000 - 224,040,000 17.12% 2,576 200959,145,000 38,575,000 93,755,000 4,530,000 - 47,755,000 - 239,230,000 13.78% 2,632 201075,020,000 35,675,000 87,745,000 4,970,000 3,830,000 48,970,000 - 252,380,000 14.85% 2,701 201178,055,000 26,085,000 54,495,000 4,765,000 3,070,000 50,185,000 25,585,000 242,240,000 15.20% 2,560 201275,695,000 21,415,000 45,060,000 4,550,000 2,690,000 58,535,000 33,590,000 241,535,000 12.77% 2,492 201379,710,000 17,160,000 34,765,000 4,330,000 2,300,000 66,695,000 36,930,000 241,890,000 13.94% 2,504 Sources: City of College Station (outstanding debt, per capita) and the U.S. Census Bureau, American Community Survey (personal income)Notes: Business-Type ActivitiesGovernmental ActivitiesCITY OF COLLEGE STATION, TEXAS OUTSTANDING DEBT BY TYPELAST TEN FISCAL YEARSDetails regarding the City's outstanding debt can be found in the notes to the financial statements.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 Debt. 125 GeneralPercentage ofObligation Less Debt Service NetActual TaxableFiscal Year BondsCash Funds Bonded Debt Value of Property Per Capita200447,085,000$ 585,336$ 46,499,664$ 1.56%580$ 200549,800,000 912,353 48,887,647 1.50%597 200653,835,000 1,645,563 52,189,437 1.45%620 200755,720,000 2,060,709 53,659,291 1.34%617 200860,695,000 2,573,421 58,121,579 1.30%639 200959,145,000 3,125,126 56,019,874 1.13%599 201075 020 0004 115 68970 904 3111 33%749CITY OF COLLEGE STATION, TEXASRATIOS OF NET GENERAL BONDED DEBT OUTSTANDINGLAST TEN FISCAL YEARS201075,020,000 4,115,689 70,904,311 1.33%749 201178,055,000 4,007,146 74,047,854 1.36%767 201275,695,000 3,320,293 72,374,707 1.26%742 201379,710,000 3,032,594 76,677,406 1.29%769 Source: City of College StationNotes: Details regarding the City's outstanding debt can be found in the notes to the financial statements. 126 Estimated Estimated Share Debt Percentage of Direct and Governmental Unit Outstanding Applicablea Overlapping Debt Debt repaid with property taxes College Station I.S.D.217,865,000$ 87.91% 191,525,122$ Brazos County 98,640,000 52.82% 52,101,648 Bryan I.S.D.143,545,000 2.08%2,985,736 Other debt College Station I.S.D.- 0.00%- Brazos County - 0.00%- Bryan I.S.D. Capital Lease - 0.00%- Subtotal, overlapping debt 246,612,506 City direct debt 96,750,000 Total direct and overlapping debt 343,362,506$ 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, 2013 127 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 $100 at 100% valuation. CITY OF COLLEGE STATION, TEXAS LEGAL DEBT MARGIN INFORMATION SEPTEMBER 30, 2013 128 UtilityLess:NetAverage MaximumService Operating Available Debt Service Annual Debt Service AnnualFiscal Year Charges Expenses Revenue Total Coverage Total Coverage2004 64,785,122$ 44,719,241$ 20,065,881$ 5,651,966$ 3.55 7,998,465$ 2.51 2005 70,636,853 51,125,745 19,511,108 5,522,447 3.53 8,364,747 2.332006 80,787,029 54,432,847 26,354,182 6,423,582 4.10 9,163,574 2.882007 87,911,120 63,514,543 24,396,577 7,389,770 3.30 10,408,958 2.34 2008 99,610,432 73,195,783 26,414,649 8,620,759 3.06 12,245,949 2.16 2009 108,367,552 80,848,570 27,518,982 9,834,136 2.80 13,870,272 1.98 2010 115,430,088 91,551,103 23,878,985 8,976,012 2.66 13,669,444 1.75 2011 127,985,835 96,938,864 31,046,971 8,675,457 3.58 13,635,526 2.28 2012 124,905,906 88,927,662 35,978,244 7,009,717 5.13 10,670,889 3.37 2013 125,581,359 90,519,871 35,061,488 9,111,927 3.85 15,372,461 2.28 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 , Certificates of Obligation and GO Refunding Bonds 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.CITY OF COLLEGE STATION, TEXASLAST TEN FISCAL YEARSUtility Revenue Bonds, Certificates of Obligation, and General Obligation Refunding BondsPLEDGED-REVENUE COVERAGE 129 Personal Income Calendar (thousands Per Capita Unemployment Year Population of dollars)Personal Income Rate % 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 2010 94,642 1,891,621 19,987 5.9 2011 96,603 1,734,731 17,957 6.3 2012 97,534 1,945,242 19,944 5.9 Sources: City of College Station Planning Division (population) U. S. Census Bureau, American Community Survey (personal income) Texas Workforce Commission (unemployment rate) Notes: CITY OF COLLEGE STATION, TEXAS DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN CALENDAR YEARS Personal income information for the City of College Station is only available for calendar years 2005-2012. were added to the Bryan/College Station MSA. The net result is an increase in the area's unemployment rate. unemployment rates. Along with the new calculation method, Robertson and Grimes County In 2005, the Bureau of Labor Statistics introduced a new methodology for calculating 130 2013 2004 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 College Station Medical Center Sanderson Farms, Inc. Reynolds & Reynolds St. Joseph Regional Hospital Sanderson Farms, Inc.Texas A&M University System St.Joseph Regional Hospital Universal Computer Systems Texas A&M University System Wal-Mart Supercenter - Bryan Source: Texas Workforce Commission, Labor Market/Career Information Department, Research Valley Partnership 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 LAST CALENDAR YEAR AND NINE YEARS PRIOR CITY OF COLLEGE STATION, TEXAS 131 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013Function/ProgramGeneral Government38.5 41.9 37.8 58.5 71.0 79.5 75.0 61.5 38.0 36.5Police146.0 144.4 155.1 163.5 168.5 176.0 169.0 180.5 180.0 188.0Fire108.5 111.4 110.6 119.0 125.0 121.0 118.0 120.5 139.0 139.0Public Works106.8 112.2 112.6 114.5 106.5 113.0 94.0 96.0 112.0 115.0Parks and Recreation116.2 120.0 119.8 123.5 131.0 133.0 133.0 119.0 71.0 65.5Planning and Development Services 28.5 25.8 27.1 24.5 34.0 37.0 41.0 54.0 55.0 51.5Information Services40.3 37.5 36.6 28.5 33.0 32.0 30.5 30.0 30.3 29.3Fiscal Services59.8 64.2 70.1 71.0 72.5 70.5 70.0 66.5 68.5 68.3Electric53.4 56.6 56.0 56.5 58.0 65.0 64.0 63.5 66.0 68.0Water / Sewer Services64.0 69.1 71.8 71.0 67.5 76.5 70.5 74.0 76.0 76.0BVSWMA27.3 24.4 24.0 22.0 25.5 25.0 23.5 22.0--Capital Projectn/an/an/an/a 10.0 10.09.09.0--Total789.3 807.5 821.5 852.5 902.5 938.5 897.5 896.5 835.8 837.1Full-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 Station Full-time-equivalent employees include full time, part time, and seasonal/temporary employees on staff as of September 30.During the fiscal year ended September 30, 2012, management of BVSWMA, Inc. negotiated the end of the borrowed employee agreement with the City of College Station. A majority of the employees covered under the "Borrowed Employee Agreement" are now employees of BVSWMA Inc. 132 2004200520062007200820092010201120122013Function/ProgramGeneral Government Open records requests 103 72 199 199 155 164 123 240 194 233 Economic development prospects 17 20 31 19 18 23 55 31 25 36 Code enforcement cases processed 9,341 2,848 5,984 4,838 5,148 6,248 5,268 4,701 5,011 4,517 Non-profit agencies/contracts monitored 10 9 13 7 10 9 10 8 7 8 Applicants receiving homebuyers assistance 16 2 9 6 3 4 6 3 15 8 Police DUI/DWI arrests 418 387 414 493 458 430 449 571 551 473 Citations processed 42,957 39,416 34,134 38,046 10,384 17,275 22,224 42,690 39,145 31,348 Uniform patrol calls handled 60,405 57,605 60,159 58,303 57,661 48,297 58,656 61,283 63,000 75,988 Average response time on high priority calls 5:58 mins 6:09 mins 6:15 mins 6:17 mins 6.06 mins 6:18 mins 6:52 mins 6:41 mins 6:38 mins 4:31 mins Criminal investigation new cases assigned 2,259 2,300 2,368 2,256 2,635 2,590 2,098 2,582 2,089 2,158 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) 1,554 1,792 1,743 1,832 1,992 2,008 2,301 1,813 1,751 2,608 Business safety inspections 1,410 1,138 828 1,018 947 760 1,364 1,151 907 889 EMS incidents2,800 3,241 3,048 3,773 4,7185,367 5,414 5,407 6,814 4,846 EMS unit responses4,900 4,930 5,276 5,476 5,3695,051 5,646 6,090 6,295 8,188 Pbli W kCITY OF COLLEGE STATION, TEXASOPERATING INDICATORS BY FUNCTION/PROGRAMLAST TEN FISCAL YEARSPublic Works Street overlay lane miles 18 19 19 19 15 9 2 11 10 13 Potholes repaired * 24,696 24,778 21,506 20,546 18,000 68,548 67,448 70,515 62,596 Curb miles swept*6,338 7,235 6,040 6,9555,620 5,595 6,244 7,131 5,826 Note: In FY10 # of potholes repaired went to # of square feet repaired.Parks and Recreation Instructional participants3,581 3,579 3,075 3,432 3,5383,077 3,112 2,765 1,835 1,600 Pool customers145,879 132,549 146,805 128,206 142,605 138,785 93,302 114,458 144,059 128,081 133 2004200520062007200820092010201120122013Function/ProgramPlanning and Development Services Permits processed 6,685 6,500 6,575 7,583 6,647 5,819 5,972 6,026 5,600 3,991 Building inspections performed 13,435 13,297 13,069 13,398 13,814 12,938 12,379 11,583 12,100 12,945 Parking citations issued 16,587 11,900 8,452 7,238 9,460 9,686 6,763 4,488 6,530 6,868 Community enhancement cases 15,086 7,016 7,384 8,631 11,885 11,622 11,408 8,632 8,900 6,518 Electric Number of connections 35,307 36,284 37,590 38,519 37,777 37,818 38,255 37,829 39,123 38,138 Average monthly consumption (KWH) 55,673,526 60,413,524 61,910,063 60,766,805 64,724,128 64,065,679 65,049,732 68,191,018 65,266,563 64,568,405 Water Number of connections 31,038 32,266 33,491 34,763 37,075 37,344 37,596 37,565 39,338 40,767 Average monthly consumption (MGW) 236,355 283,429 317,438 293,246 324,012 345,170 301,399 408,327 356,791 380,558 Sewer Number of connections 28,594 29,694 31,051 32,034 34,743 34,743 35,853 35,510 36,908 38,688 Average daily sewage treatment 6,808 6,220 5,911 6,502 6,626 6,625 6,700 6,242 6,453 6,500 (thousands of gallons) New services completed 890 571 646 521 781604 377 301 376 319 Sanitation Number of users (units)28,594 28,399 27,181 28,112 29,533 30,750 30,779 30,455 31,573 32,551 Residential tons collected20,353 23,535 24,964 27,556 22,191 21,406 28,451 22,775 28,991 25,493 CITY OF COLLEGE STATION, TEXASOPERATING INDICATORS BY FUNCTION/PROGRAM - ContinuedLAST TEN FISCAL YEARS Residential tons recycled1,082 923 983 1,060 1,199 1,064 1,053 1,173 1,124 1,010 Commercial tons collected35,355 35,114 35,122 38,402 38,709 36,245 36,558 35,133 34,608 36,751 Parking garage Active contract customers*449 432 472 464333 524 482 460 354 Hourly cash customers97,904 127,608 108,893 109,028 107,584 104,342 85,210 83,048 80,127 81,624 Utility Customer Service Payments processed408,348 401,891 413,088 423,299 443,766 461,557 467,262 436,936 476,999 498,703 Incoming calls82,536 82,234 85,728 85,842 97,121 96,876 85,212 84,861 94,986 93,075 Meters read577,773 598,660 618,676 640,554 670,913 694,270 708,672 719,749 732,631 744,298 Source: City of College Station various departments* Data not measured for fiscal year indicated. 134 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013Function/ProgramPolice Patrol units 25 26 26 29 29 29 27 33 32 39 Jail capacity17 17 17 17 17 17 17 17 17 17 Fire stations4 4 4 4 4 4 4 4 5 6 Note: The Fire Department operates an additional fire station located at the airport.Public Works Streets (linear miles)353 385 395 429 438 428 453 474 482 482 Sidewalks (miles)89 97 100 100 100 119 130 138 150 156 Traffic signals62 62 62 65 66 66 69 70 75 76 Storm sewers (miles)**72 72 72 80 83 83 89 89 Notes: Street measurement changed from lane miles to linear miles in FY04. Storm sewer mileage includes both underground pipes and valley gutters.Parks and Recreation Acreage1,217 1,248 1,274 1,289 1,306 1,306 1,327 1,327 1,327 1,328 Playunits35 35 46 48 47 54 56 57 57 56 Softball/baseball fields 19 25 32 32 35 35 36 36 36 36 Soccer fields 19 26 31 31 29 29 30 30 30 30 Jogging/walking trails22 26 27 28 29 33 34 34 34 34 Community centers3 3 3 3 3 3 3 3 3 2 Pools3 3 3 3 3 3 3 3 3 3 Pavilions (rentable)5 6 6 7 7 6 6 7 7 7 Notes: Some parks have multiple playunits. Softball/baseball fields include practice fields.CITY OF COLLEGE STATION, TEXASCAPITAL ASSET STATISTICS BY FUNCTION/PROGRAMLAST TEN FISCAL YEARSElectric Peak demand (megawatts) 255 280 260 355 355 355 305 305 325 325 Number of substations4 4 5 5 5 5 6 6 6 6 Distribution lines (miles)414 450 394 411 411 432 440 444 438 458 Water Water mains (miles)317 341 365 367 381 385 396 402 410 415 Fire hydrants2,070 2,165 2,232 2,380 2,453 2,494 2,562 2,614 2,682 2,741 Number of wells6 6 8 8 8 8 9 9 9 9 Water production capacity 26,000 28,000 23,000 23,000 23,000 26,000 32,000 27,000 30,000 29,000 (thousands of gallons per day)Sewer Sanitary sewer lines (miles)264 271 279 285 301 305 313 319 324 324 Treatment capacity 11,500 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 trucks24 24 24 25 25 25 25 25 25 25 Residential collection containers15,207 15,958 16,647 18,135 19,549 20,275 20,671 20,550 21,547 22,470 Commercial collection containers1,511 1,545 1,569 1,594 1,619 1,644 1,669 1,694 1,719 1,744 Fleet number of vehicles600 613 627 651 643 647 662 662 576 570 Source: City of College Station* Data not measured for fiscal year indicated. 135   2013Ę2014 PROPOSED ANNUAL BUDGET