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HomeMy WebLinkAboutFY 2015-2016 -- Comprehensive Annual Financial Report Mission Statement On behalf of the citizens of College Station, home of Texas A&M University, we will promote and advance the community’s quality of life. www.cstx.gov CITY OF COLLEGE STATION, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 PREPARED BY THE CITY OF COLLEGE STATION FISCAL SERVICES DEPARTMENT JEFF KERSTEN, ASSISTANT CITY MANAGER ACCOUNTING OPERATIONS & FINANCIAL REPORTING DIVISION CITY OF COLLEGE STATION, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 Table of Contents Page INTRODUCTORY SECTION Letter of Transmittal ................................................................................................................................................................ 1 City Organization ..................................................................................................................................................................... 6 Principal City Officials ............................................................................................................................................................. 7 GFOA Certificate of Achievement for Excellence in Financial Reporting ............................................................................... 8 FINANCIAL SECTION Independent Auditors’ Report ................................................................................................................................................. 9 Management’s Discussion and Analysis (Unaudited) ....................................................................................................... 12 Basic Financial Statements: Government - Wide Financial Statements: Statement of Net Position ........................................................................................................................... 26 Statement of Activities ................................................................................................................................. 27 Fund Financial Statements: Balance Sheet – Governmental Funds ....................................................................................................... 28 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ................................................................................................................. 29 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds................................................................................................... 30 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ................................................... 31 Statement of Net Position – Proprietary Funds .......................................................................................... 32 Statement of Revenues, Expenses, and Changes in Net Position – Proprietary Funds ............................................................................................................ 33 Statement of Cash Flows – Proprietary Funds ........................................................................................... 34 Notes to the Financial Statements ........................................................................................................................... 35 Required Supplementary Information: Texas Municipal Retirement System – Schedule of Changes in Net Pension Liability and Related Ratios ........... 69 CITY OF COLLEGE STATION, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 Table of Contents-continued Page Texas Municipal Retirement System – Schedule of Contributions .......................................................................... 70 City of College Station Employees Other Post-Employment Benefits Plan Schedule of Funding Progress ................................................................................................................................. 71 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual – General Fund (reported as part of the General Fund(s)) ....................................................... 72 Supplementary Information: Combining and Individual Fund Statements and Schedules: Combining Balance Sheet – General Fund(s) ........................................................................................... 74 Combining Statement of Revenues, Expenditures, and Changes In Fund Balances – General Fund(s) ......................................................................................................... 75 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual: General Fund(s): General Fund .................................................................................................................... 76 Economic Development Fund ........................................................................................... 77 Efficiency Time Payment Fund ......................................................................................... 78 Combining Balance Sheet – Nonmajor Governmental Funds .................................................................... 81 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance – Nonmajor Governmental Funds .................................................................................... 83 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual: Special Revenue Funds: Court Technology Fee Fund ............................................................................................. 85 Court Security Fee Fund ................................................................................................... 86 Juvenile Case Manager Fee Fund .................................................................................... 87 Police Seizure Fund .......................................................................................................... 88 Memorial Cemetery Fund ................................................................................................. 89 Memorial Cemetery Endowment Fund ............................................................................. 90 Texas Ave. Cemetery Endowment Fund .......................................................................... 91 Hotel Tax Fund.................................................................................................................. 92 CITY OF COLLEGE STATION, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 Table of Contents-continued Page Community Development Fund ........................................................................................ 93 Community Development Block Grant Local Account Fund ............................................. 94 Wolf Pen Creek (WPC) TIF Fund ..................................................................................... 95 Parks Escrow Fund ........................................................................................................... 96 Sidewalk Zones Fund ....................................................................................................... 97 Drainage Utility Fund ........................................................................................................ 98 Truancy Prevention Fee Fund .......................................................................................... 99 West Medical District Tax Increment Reinvestment Zone No. 18 Fund ......................... 100 East Medical District Tax Increment Reinvestment Zone No. 19 Fund ......................... 101 Public, Educational and Government Access Channel Fee Fund ................................. 102 R. E. Meyer Estate Restricted Gift Fund ......................................................................... 103 Capital Projects Funds: General Government Projects Fund ............................................................................... 104 Parks and Recreation Projects Fund .............................................................................. 105 Streets Projects Fund................................................................................................................... 106 Debt Service Fund ....................................................................................................................... 107 Nonmajor Enterprise Funds: Combining Statement of Net Position ....................................................................................................... 109 Combining Statement of Revenues, Expenses, and Changes in Net Position ........................................................................................................................................... 110 Combining Statement of Cash Flows ........................................................................................................ 111 Internal Service Funds: Combining Statement of Net Position ....................................................................................................... 113 Combining Statement of Revenues, Expenses, and Changes in Net Position ........................................................................................................................................... 114 Combining Statement of Cash Flows ........................................................................................................ 115 CITY OF COLLEGE STATION, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 Table of Contents-continued Page STATISTICAL SECTION (Unaudited): Net Position by Component – Last Ten Fiscal Years ............................................................................................ 117 Changes in Net Position – Last Ten Fiscal Years ................................................................................................. 118 Program Revenues by Function/Program – Last Ten Fiscal Years ...................................................................... 120 Fund Balances, Governmental Funds – Last Ten Fiscal Years ............................................................................ 121 Changes in Fund Balances, Governmental Funds – Last Ten Fiscal Years ......................................................... 122 Tax Revenue by Source, Governmental Funds – Last Ten Fiscal Years .............................................................. 124 Assessed Value and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years ................................ 125 Direct and Overlapping Property Tax Rates – Last Ten Fiscal Years ................................................................... 126 Principal Property Taxpayers – Current Year and Nine Years Ago ....................................................................... 127 Property Tax Levies and Collections – Last Ten Fiscal Years .............................................................................. 128 Taxable Sales by Category – Last Ten Calendar Years ........................................................................................ 129 Direct and Overlapping Sales Tax Rates – Last Ten Fiscal Years ........................................................................ 130 Sales Tax Revenue Payers by Industry – Calendar Years 2006 and 2015 .......................................................... 131 Outstanding Debt by Type – Last Ten Fiscal Years .............................................................................................. 132 Ratios of Net General Bonded Debt Outstanding – Last Ten Fiscal Years ........................................................... 133 Direct and Overlapping Governmental Activities Debt as of September 30, 2016 ................................................ 134 Legal Debt Margin Information ............................................................................................................................... 135 Pledged-Revenue Coverage – Last Ten Fiscal Years ........................................................................................... 136 Demographic and Economic Statistics – Last Ten Calendar Years ...................................................................... 137 Principal Area Employers – Last Calendar Year and Nine Years Prior ................................................................. 138 Full-Time-Equivalent City Government Employees by Function/Program – Last Ten Fiscal Years ..................... 139 Operating Indicators by Function/Program – Last Ten Fiscal Years ..................................................................... 140 Capital Asset Statistics by Function/Program – Last Ten Fiscal Years ................................................................. 142 1 2 3 4 5 City Manager Fire / EOC Police Community Services Human Resources Planning & Development Engineering Public Works Water Services Electric Utility Parks and Recreation Utility Customer Service Budget Purchasing Accounting & Financial Reporting Municipal Court Fiscal Services Information Technology Citizens of College Station City Secretary Municipal Judge Internal Auditor Appointed Boards and Commissions Technology Services E-GOV Business Services GIS Communications Network Services Admin City Attorney Mayor and Council Deputy City Manager Assistant City Manager Assistant City Manager Marketing & Public Communications Economic Development CITY ORGANIZATION 6 City of College Station, Texas September 30, 2016 Principal City Officials Elected Officials Mayor ................................................................................................................................................................... Nancy Berry City Council Place 1 ............................................................................................................................................ Blanche Brick City Council Place 2 ............................................................................................................................................ Steve Aldrich City Council Place 3 ............................................................................................................................................. Karl Mooney City Council Place 4/Mayor Pro Tem................................................................................................................... John Nichols City Council Place 5 .............................................................................................................................................. Julie Schultz City Council Place 6 ......................................................................................................................................... James Benham City Administration City Manager ...................................................................................................................................................... Kelly Templin Deputy City Manager ........................................................................................................................................ Chuck Gilman Assistant City Manager ........................................................................................................................................ Jeff Kersten Assistant City Manager ........................................................................................................................................... Jeff Capps Director of Planning and Development Services ............................................................................................... Lance Simms Director of Finance ................................................................................................................................... Mary Ellen Leonard Director of Public Communications .......................................................................................................................... Jay Socol Director of Water Services Department ......................................................................................................... David Coleman Director of Electric Utility ................................................................................................................................ Timothy Crabb Chief of Police ................................................................................................................................................ Scott McCollum Interim Fire Chief .......................................................................................................................................... Joe Don Warren Director of Public Works ................................................................................................................................ Donald Harmon Director of Parks and Recreation ...................................................................................................................... David Schmitz Director of Information Technology ...................................................................................................................... Ben Roper Director of Human Resources .............................................................................................................................. Alison Pond Director of Community Services .......................................................................................................................... Debbie Eller Director of Economic Development ..................................................................................................................... Natalie Ruiz City Attorney ................................................................................................................................................... Carla Robinson City Secretary .............................................................................................................................................. Sherry Mashburn Internal Auditor ......................................................................................................................................................... Ty Elliott 7 8 INDEPENDENT AUDITORS’ REPORT To the Honorable Mayor and Members of the City Council of the City of College Station, Texas Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of College Station, Texas (the “City”) as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. 9 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of September 30, 2016, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and budgetary comparison information on pages 12–25 and 69–72 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The introductory section, combining and individual nonmajor fund financial statements, and statistical section, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements and the related budgetary comparison schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and the related budgetary comparison schedules are fairly stated in all material respects in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. 10 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 13, 2017 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. This report and the results of testing of internal control and compliance for each major program can be found in the Compliance and Single Audit Reports for the year ended September 30, 2016. Bryan, Texas March 13, 2017 11 Management’s Discussion and Analysis For the Fiscal Year Ended September 30, 2016 (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, 2016. 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 $524,538,258 (net position). Of this amount, $88,934,709 (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 $44,544,336 during the fiscal year. • At the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $115,878,082, which is an increase of $17,278,053 when compared to the prior year. This increase is due primarily to the issuance of long-term debt for street and General Government capital projects. • Approximately 14.6 percent of the combined governmental funds ending fund balance, or $16,890,755, are available for spending at the City’s discretion (unassigned fund balance). • The City’s total amount of outstanding debt is $257,760,000, which is a net increase of $10,645,000 over last year. This increase is due to the combination of paying off existing debt and issuing new debt for capital projects in 2016. 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. 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: 12 Management’s Discussion and Analysis For the Fiscal Year Ended September 30, 2016 (Unaudited) City of College Station, Texas Relationship between Comprehensive Annual Financial Report (CAFR) and Basic Financial Statements and Required Supplementary Information (RSI) General information on the government structure, services, and environment Pages 1-8 Management’s Discussion and Analysis Pages 12-25 Government-Wide Financial Statements Pages 26-27 Governmental Fund Financial Statements Pages 28-31 Proprietary Fund Financial Statements Pages 32-34 Notes to the Financial Statements Pages 35-68 Additional Required Supplementary Information Pages 69-72 Information on individual funds and other supplementary information not required by GAAP Pages 74-115 Trend data and non-financial data (unaudited) Pages 117-142 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. Introductory Section Basic Financial Statements and RSI Financial Section Statistical Section 13 Management’s Discussion and Analysis For the Fiscal Year Ended September 30, 2016 (Unaudited) City of College Station, Texas 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, streets, drainage, traffic, parks and recreation, and citizen and neighborhood resources. The business-type activities of the City include electric, water, wastewater, sanitation, and the Northgate parking garage. The government-wide financial statements can be found on pages 26-27. 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. 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 28-31. 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. 14 Management’s Discussion and Analysis For the Fiscal Year Ended September 30, 2016 (Unaudited) City of College Station, Texas 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 32-34. 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 35-68. Required Supplementary Information In addition to the basic financial statements and accompanying notes, this report presents certain required supplementary information, found on pages 69-72, 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 74-115. Statistical Section The statistical section containing unaudited financial trend data, revenue capacity, debt capacity, and demographic and economic information is included on pages 117-142. 15 Management’s Discussion and Analysis For the Fiscal Year Ended September 30, 2016 (Unaudited) City of College Station, Texas GOVERNMENT-WIDE FINANCIAL ANALYSIS 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 $524,538,258 at the close of the most recent fiscal year. The largest portion of the City’s net position (73.5 percent) reflects its investment of $385,503,773 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. An additional portion of the City’s net position, $50,099,776 (9.6 percent), represents resources that are subject to external restriction on how they may be used. The remaining balance of unrestricted net assets, $88,934,709 (17.0 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 $44,544,336 as a result of fiscal year 2016 operations, as compared to the increase of $34,333,359 for fiscal year 2015 operations. Net Position: 2016 2015 2016 2015 2016 2015 Assets Current and other assets 148,153,724$ 122,707,767$ 111,048,788$ 96,596,971$ 259,202,512$ 219,304,738$ Capital assets 259,645,035 245,255,015 345,616,796 330,762,494 605,261,831 576,017,509 Total assets 407,798,759 367,962,782 456,665,584 427,359,465 864,464,343 795,322,247 Total deferred outflow of resources 18,663,158 6,609,688 6,216,199 2,677,765 24,879,357 9,287,453 Liabilities Long-term liabilities outstanding 160,123,230 125,247,330 149,861,935 150,282,307 309,985,165 275,529,637 Other liabilities 27,883,130 18,435,110 26,222,418 29,712,081 54,105,548 48,147,191 Total liabilities 188,006,360 143,682,440 176,084,353 179,994,388 364,090,713 323,676,828 Deferred inflows of resources Deferred charge on pensions 568,576 727,423 146,153 211,527 714,729 938,950 Total deferred inflows of resources 568,576 727,423 146,153 211,527 714,729 938,950 Net Position Net Investment in capital assets 176,171,787 167,101,930 209,331,986 200,468,509 385,503,773 367,570,439 Restricted 48,518,275 55,374,914 1,581,501 1,581,186 50,099,776 56,956,100 Unrestricted 13,196,919 7,685,763 75,737,790 47,781,620 88,934,709 55,467,383 Total net position 237,886,981$ 230,162,607$ 286,651,277$ 249,831,315$ 524,538,258$ 479,993,922$ Governmental Activities Business-Type Activities Total 16 Management’s Discussion and Analysis For the Fiscal Year Ended September 30, 2016 (Unaudited) City of College Station, Texas The following table provides a summary of the City’s operations for the year ended September 30, 2016 and highlights key elements of the change in the City’s net position: Governmental Activities: Governmental activities increased the City of College Station’s net position by $7,724,374. Key elements of this net increase are as follows: • Total revenues increased 5.6% over the prior year. o Property taxes increased 5.7% over the prior year as a result of increases in property value. o Sales and mixed beverage taxes increased 1.8% over the prior year, which is a lower rate of growth compared to last year. o All of the other governmental activity revenues increased 8.21 % over the prior year. • Expenditures increased 16.7% over the prior year, in part due to higher departmental expenditures in 2016 as compared to 2015. Changes in Net Position: Revenues 2016 2015 2016 2015 2016 2015 Program revenues: Charges for services 12,876,095$ 14,139,897$ 142,894,418$ 140,646,594$ 155,770,513$ 154,786,491$ Operating grants and contributions 2,943,080 2,995,401 1,114,008 668,322 4,057,088 3,663,723 Capital grants and contributions 14,549,416 3,542,528 14,192,226 9,596,813 28,741,642 13,139,341 General revenues: Property taxes 32,706,952 30,936,581 - - 32,706,952 30,936,581 Sales and mixed beverage taxes 27,163,480 26,687,963 - - 27,163,480 26,687,963 Other taxes 8,607,402 8,604,517 - - 8,607,402 8,604,517 Gain (loss) on sale of capital assets (75,177) 6,818,583 - - (75,177) 6,818,583 Interest and investment income 576,209 379,537 360,459 187,322 936,668 566,859 Total revenues 99,347,457 94,105,007 158,561,111 151,099,051 257,908,568 245,204,058 Expenses Police 20,858,703 18,601,237 - - 20,858,703 18,601,237 Fire 17,663,825 15,095,073 - - 17,663,825 15,095,073 Public works 21,028,954 18,793,401 - - 21,028,954 18,793,401 Parks & recreation 11,161,966 9,884,737 - - 11,161,966 9,884,737 Library 1,177,291 1,213,820 - - 1,177,291 1,213,820 Planning & development svcs 3,440,211 3,225,321 - - 3,440,211 3,225,321 Information technology 4,907,473 4,416,190 - - 4,907,473 4,416,190 Fiscal services 4,146,832 3,594,382 - - 4,146,832 3,594,382 General government 16,152,326 10,194,285 - - 16,152,326 10,194,285 Interest on long term debt 3,425,529 3,943,972 - - 3,425,529 3,943,972 Unallocated depreciation 1,299,794 1,235,340 - - 1,299,794 1,235,340 Electric utility - - 73,880,232 79,828,415 73,880,232 79,828,415 W ater utility - - 13,062,768 13,082,761 13,062,768 13,082,761 Wastewater utility - - 11,995,045 12,437,020 11,995,045 12,437,020 Sanitation services - - 8,216,958 7,786,244 8,216,958 7,786,244 Parking operations - - 946,325 953,681 946,325 953,681 Total expenses 105,262,904 90,197,758 108,101,328 114,088,121 213,364,232 204,285,879 Incr (Decr) in net position before transfers (5,915,447) 3,907,249 50,459,783 37,010,930 44,544,336 40,918,179 Transfers net 13,639,821 13,037,208 (13,639,821) (13,037,208) - - Increase in net position 7,724,374 16,944,457 36,819,962 23,973,722 44,544,336 40,918,179 Net position at beginning of year 230,162,607 217,123,245 249,831,315 228,537,318 479,993,922 445,660,563 Prior period adjustment - (3,905,095) - (2,679,725) - (6,584,820) Net position at end of year 237,886,981$ 230,162,607$ 286,651,277$ 249,831,315$ 524,538,258$ 479,993,922$ Governmental Activities Business-Type Activities Total 17 Management’s Discussion and Analysis For the Fiscal Year Ended September 30, 2016 (Unaudited) City of College Station, Texas The chart below illustrates the City’s governmental activities revenues by source: This chart depicts governmental activity program revenues relative to program expenses: Business-type Activities: Business-type activities increased the City of College Station’s net position by $36,819,962. Key elements of this increase are as follows: • Due in part to lower purchased power costs, expenses were lower than last year by $5,986,793. • Capital infrastructure contributions from various developments throughout the City contributed $14,192,226 to the net position. Property Taxes 32.9% Sales and Mixed Beverage Tax 27.3% Other Taxes 8.7% Charges for Services 13.0% Capital, Grants Contrib 14.6% Misc 3.5% Governmental Activities Revenue By Source $99,347,457 - 4,000,000 8,000,000 12,000,000 16,000,000 20,000,000 24,000,000 Police Fire Public Works Parks & Rec Plan & Dev Inform Tech Fiscal Svcs Gen'l Gov't Other Governmental Activities Program Revenue and Expense Revenue Expenses 18 Management’s Discussion and Analysis For the Fiscal Year Ended September 30, 2016 (Unaudited) City of College Station, Texas Revenues for the City’s business-type activities are presented in the following chart: This chart depicts business-type activity program revenues relative to program expenses: 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 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 fiscal year 2016, the City’s governmental funds reported combined ending fund balances of $115,878,082. Approximately 14.6 percent ($16,890,755) of this total amount constitutes unassigned Charges for Services 90.7% Grants & Contributions 9.1% Other 0.2% Business-type Revenue $158,561,111 - 20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 120,000,000 Electric Water Wastewater Sanitation Parking Business-type Program Revenue and Expense Revenue Expenses 19 Management’s Discussion and Analysis For the Fiscal Year Ended September 30, 2016 (Unaudited) City of College Station, Texas 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 $ 6,061,222 Restricted $ 47,842,829 Committed $ 14,050,264 Assigned $ 31,033,012 A detailed breakdown of the fund balance can be found in Note IV. I. Components of Fund Balances. Revenues for governmental functions totaled $86,550,291 in the fiscal year ended September 30, 2016, an increase of 3.1 percent or $2,605,401 from the fiscal year ended September 30, 2015. Expenditures for governmental functions, totaling $111,606,829, increased by approximately 14.8 percent, or $14,396,847, from the fiscal year ended September 30, 2015. Other financing sources and uses (net) were $42,334,591. As a result, in fiscal year 2016, revenues for governmental functions exceeded expenditures by $17,278,053. This increase is primarily due to the issuance of long term debt for capital projects. 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 $16,890,755 while the total governmental fund balance was $115,878,082. The City’s fiscal and budgetary policies require that the General Fund’s fund balance be at least equal to 15 percent of budgeted expenditures, a percentage equal to 55 days of expenditures. The total fund balance is approximately 23.1 percent of fiscal year 2016 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 21.8 percent of total general fund expenditures, while total fund balance represents 24.7 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 $3,289,862 during the current fiscal year due primarily to planned one time expenditures, equipment purchases and capital expenditures. The Debt Service Fund ended the fiscal year with a fund balance of $4,793,558. This entire amount is reserved for the payment of debt service. The net increase in fund balance during the current fiscal year was $1,979,510. This increase is due to higher than anticipated ad valorem tax revenues, lower than anticipated debt service payments, and higher than anticipated transfer in from other funds. The Streets Projects Fund ended the fiscal year with a balance of $29,702,562. Of this amount $23,973,405 has been assigned by management to projects, but is not legally restricted as of September 30, 2016. The remainder of $5,729,157 is legally restricted to specific projects. The net increase in fund balance during the current fiscal year was $10,020,953. This increase was attributable to more long term debt being issued for street capital projects, and lower than budgeted spending on street capital projects. 20 Management’s Discussion and Analysis For the Fiscal Year Ended September 30, 2016 (Unaudited) City of College Station, Texas 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 $286,651,277. Of this amount, 26.4 percent ($75,737,790) constitutes unrestricted net position. The remainder of net position for the proprietary funds is reported as follows: • Invested in capital assets, net related debt ($209,331,986) and • Restricted for debt service ($1,581,501). Operating revenues for proprietary activities totaled $142,080,670 for the fiscal year, an increase of 0.7 percent or $931,416 from the previous fiscal year. Operating expenses decreased $4,977,157 or 4.7 percent for the same period. Operating income was $40,043,080 for the fiscal year. The proprietary funds reported net non-operating expenses of $4,138,783 at the end of fiscal year 2016 as compared to net non-operating expenses of $7,151,677 in the previous fiscal year. The Proprietary Funds had an overall increase of $36,456,702 in net position for fiscal year 2016. Electric Fund At the end of the fiscal year, the unrestricted net position for the Electric Fund totaled $33,923,237. 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, 2016, Electric Fund working capital equaled approximately 46 percent of annual operating expenses, as compared to 28.1 percent at September 30, 2015. This increase was due continued lower purchased power costs in 2016. Electric Fund operating revenues increased by 0.2 percent ($193,812) during fiscal year 2016, while operating expenses decreased 7.7 percent ($6,001,442) during the same period. This resulted in operating income of $29,846,440. The operating income when combined with the net non-operating expenses, net capital contributions and transfers resulted in an increase in net position of $25,912,345 in the Electric Fund during the fiscal year. Water Fund Unrestricted net position for the Water Fund at September 30, 2016 totaled $8,977,908. At September 30, 2016, Water Fund working capital equaled approximately 95.9 percent of annual operating expenses, as compared to 57.3 percent at September 30, 2015. Water Fund operating revenues increased by 3.3 percent ($490,814) during fiscal year 2016. Operating expenses of $10,810,798 increased 3.3 percent ($341,045) over fiscal year 2015. This resulted in operating income of $4,692,728. The operating income when combined with the net non-operating expenses, net capital contributions and transfers resulted in an increase in net position of $4,473,793 in the Water Fund during the fiscal year. Wastewater Fund The Wastewater Fund’s unrestricted net position at the end of the fiscal year 2016 totaled $12,124,825. At September 30, 2016, Wastewater Fund working capital equaled approximately 158.1 percent of annual operating expenses, as compared to 147.4 percent at September 30, 2015. 21 Management’s Discussion and Analysis For the Fiscal Year Ended September 30, 2016 (Unaudited) City of College Station, Texas Operating revenues in Wastewater Fund were $15,214,338 or a $298,934 (2.0 percent) increase over the previous fiscal year. Operating expenses decreased from $10,580,787 to $10,571,772 or 0.08 percent while operating income increased by 7.1 percent from $4,334,617 to $4,642,566. The operating income when combined with the net non-operating expenses, net capital contributions and transfers resulted in an increase in net position of $4,669,547 in the Wastewater Fund during the fiscal year. Budgetary Highlights The final amended budget for fiscal year 2016 totaled $315,642,130 for all funds. In the General Fund the final amended budget showed a decrease in fund balance of $11,185,310. The actual change in fund balance (GAAP Basis) was a decrease of $3,289,862. The following are some of the key factors in the change in fund balance: • Revenues were higher than the estimate due to increases in licenses and permits, fines/forfeits/penalties, rents and royalties, and various other revenues. • Expenditures were overall lower due to reduced and deferred spending during the fiscal year. • Some expenditures planned for in 2016 were delayed and will occur in 2017. 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 2016 to address these priorities. CAPITAL ASSETS The City of College Station’s investment in capital assets for its governmental and business-type activities as of September 30, 2016 amounted to $605,261,831 (net of accumulated depreciation). This investment in capital assets includes land, utility systems, building and building improvements, improvements other than buildings, machinery and equipment, infrastructure, and construction in progress. Capital Assets at Year End Net of Accumulated Depreciation Governmental Business-Type Activities Activities Total Land 35,900,108$ 690,750$ 36,590,858$ Utility systems - 314,110,044 314,110,044 Buildings and other improvements 24,751,068 3,848,224 28,599,292 Improvements other than buildings 22,842,423 - 22,842,423 Machinery and equipment 13,776,011 3,111,365 16,887,376 Infrastructure 143,318,473 - 143,318,473 Construction in progress 19,056,952 23,856,413 42,913,365 259,645,035$ 345,616,796$ 605,261,831$ 22 Management’s Discussion and Analysis For the Fiscal Year Ended September 30, 2016 (Unaudited) City of College Station, Texas Major capital projects completed by the City during the 2016 fiscal year include the following: • Rock Prairie Road Rehabilitation Medical Ave to W.D. Fitch • Intersection Pedestrian Improvements at Holleman/Eleanor; Holleman/Welsh and George Bush at Timber/Bizzell • Bike/Pedestrian Improvements George Bush at Dexter • Guadalupe Drive Sidewalk Improvements • Graham Road Rehabilitation Longmire to Dove Crossing • Dominik Sidewalks Stallings to Munson • Wolf Pen Creek Erosion Control Phase II • Wellborn Road (FM 2154) Sidewalks • Northgate Garage Thermal and Moisture Protection • Extend underground feeders and serve load in the Northgate Area • Relocation of the emergency dispatch backup control center • Spring Creek transmission line relocation and reconductor project 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 2016 fiscal year, the City of College Station had total debt outstanding of $257,760,000. All of this amount is comprised of debt backed by the full faith and credit of the City. Certificates of Obligation that fund business-type activities in the Electric, Water, Wastewater and Northgate Parking Garage Funds are also backed by the surplus of revenue derived from each enterprise fund’s revenue source. The City’s total debt increased by $10,645,000 during the current fiscal year. The change in total debt was a result of the following: • Issuance of $40,890,000 in General Obligation and Refunding bonds. • Issuance of $25,720,000 in Certificates of Obligation. • Maturity/Retirement/Refunding of $55,965,000 in General Obligation bonds, Certificates of Obligation, and Utility Revenue Bonds. The City’s General Obligation and Certificates of Obligation have an underlying rating of AA+ by Standard & Poor’s (“S&P”) and Aa2 by Moody’s Investors Service (“Moody’s”). The underlying ratings for the City’s revenue bonds are A+ by S&P and Aa2 by Moody’s. Additional information on the City’s long-term debt can be found in Note IV.H to the financial statements. PENSIONS AND RETIREE HEALTHCARE Effective fiscal year 2015, the Governmental Accounting Standard Board (GASB) Statement No. 68, “Accounting and Financial Reporting for Pensions” created specific reporting requirements for pensions Governmental Activities Business-Type Activities Total General Obligation Bonds 88,380,000$ 57,115,000$ 145,495,000$ Certificates of Obligation 30,080,000 82,185,000 112,265,000 118,460,000$ 139,300,000$ 257,760,000$ 23 Management’s Discussion and Analysis For the Fiscal Year Ended September 30, 2016 (Unaudited) City of College Station, Texas that are different than requirements in prior years. Both valuations are important as the reporting valuation provides a rigorous standard of measure that can be used to compare the City’s pension liabilities to other governments from around the nation. The funding valuation is important as the actuarial methods used including strategies for repaying any unfunded actuarial accrued liabilities combined with the City’s history of making those contributions provides insights regarding the City’s commitment to and the effectiveness of its funding strategy. Information contained in the financial statements themselves including the first schedule of Required Supplementary Information (RSI), Schedule of Changes in Net Pension Liability and Related Ratios, is based on the reporting valuation. The second schedule in the RSI, Schedule of Contributions, is based on the funding valuation. On a reporting basis, the City’s financial statements reflect a Net Pension Liability as of September 30, 2016 of $40,402,229, which is 83.17% of the City’s annual covered payroll of $48,579,284. ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES Economic conditions remain mostly positive in College Station. Property values have continued to increase, with new construction continuing at a strong pace. Growth continues in College Station. In the northern part of the City, development and redevelopment continues along the University Drive Corridor with the construction of mixed use developments including Century Square. This development along University Drive is underway and is expected to include hotels, office, living and retail spaces, as well as restaurants. On the other side of Texas Avenue the new Embassy Suites hotel is under construction and will add significant property value to the tax base. There also continues to be activity in the Bio-Corridor. Multi-family construction continues to take place around the city as well. Sales tax revenues continue to grow, though at a slower pace than in recent years. Plans for development continue in the Medical District in the southern part of the City east of Highway 6 and south of Rock Prairie Road. Retail development continues, especially in the Tower Point and Caprock developments in the southern part of the City with new restaurants and other businesses opening and others under construction to serve the ever growing residential populations in that area of the City. The tourism and hospitality industry continues to develop with hotel rooms under construction in College Station. Veterans Park and other athletic facilities continue to be utilized for a variety of events including the 7 on 7 football tournament. Over 130 athletic and special events were held in College Station in 2016. Texas A&M University continues to see significant growth and development. Enrollment continues to increase at Texas A&M University. Construction of new buildings and facilities on campus continues to accommodate this growth. The Texas A&M University System recently announced plans to invest $150 million to create a new research and development campus, to be known as the RELLIS Campus, to help companies move ideas from the laboratory to the marketplace while also offering a new path toward a college degree. While all of this news is positive, the growth strains city services, such as public safety, the transportation system, the utility services and other core services. In particular, unless measures are taken to address it, the strain on utilities could impact the ability to accommodate future growth in the coming years. The FY 2017 budget sets the strategic policy direction for the City and provides the funding to implement that direction for the year. This budget will allow the staff to continue to meet the needs of our citizens and visitors as the City continues to experience a sustained period of growth. This shows itself through continued growth in higher education, through a robust visitor and tourism economy, and all of the ancillary things this growth brings. While growth continues, there is also a need to maintain and improve existing infrastructure throughout the City. This budget is a roadmap for addressing the growth and infrastructure maintenance demands of the City into the future. 24 Management’s Discussion and Analysis For the Fiscal Year Ended September 30, 2016 (Unaudited) City of College Station, Texas As the City continues to grow, we must respond to that growth in a sustainable and measured manner. We must be prudent with the limited available resources in an effort to maximize the services provided to citizens and visitors of College Station. Tax Rate and Utility Rates The fiscal year 2017 budget was prepared using a tax rate of 47.25 cents per $100 assessed valuation. This is 2.00 cents higher than the fiscal year 16 tax rate. The debt service portion of the tax rate is 19.5339 cents, and the operations and maintenance portion of the tax rate is 27.7161 cents. The 2017 budget includes a reduction in Electric rates of 1%, and an increase in Wastewater rates of 8%. A new roadway maintenance fee to fund roadway maintenance is also included in the budget. REQUEST FOR INFORMATION This financial report is designed to provide a general overview of the City of College Station’s financial position for all who have an interest in the City’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to: City of College Station Fiscal Services Department ATTN: Finance Director PO Box 9960 College Station, Texas 77840-9960 Or visit our website at http://www.cstx.gov/cafr 25 Governmental Business-type Activities Activities Total Assets Cash and cash equivalents 122,072,658$ 38,377,325$ 160,449,983$ Investments 16,095,801 4,984,168 21,079,969 Receivables (net of allow for uncollectible)5,751,453 18,521,125 24,272,578 Investment interest receivable 20,341 9,785 30,126 Inventories 6,132,137 3,155,263 9,287,400 Internal balance (4,357,671) 4,357,671 - Prepaids 22,201 - 22,201 Restricted assets Cash and cash equivalents - 19,338,108 19,338,108 Equity in investments - 2,511,721 2,511,721 Equity in joint venture - 14,686,316 14,686,316 Loans receivable 1,523,166 3,610,000 5,133,166 Interfund receivable 893,638 1,497,306 2,390,944 Capital assets (net of accum depreciation) Land and construction in progress 54,957,060 24,547,163 79,504,223 Other capital assets (net accum depreciation)204,687,975 321,069,633 525,757,608 Total assets 407,798,759 456,665,584 864,464,343 Deferred outflows of resources Deferred charge on pension 16,891,123 4,466,299 21,357,422 Deferred charge on refunding 1,772,035 1,749,900 3,521,935 Total deferred outflows of resources 18,663,158 6,216,199 24,879,357 Liabilities and fund balances Accounts payable 5,226,618 8,734,256 13,960,874 Accrued liabilities 2,130,506 746,590 2,877,096 Retainage payable 226,746 427,898 654,644 Customer construction advances 1,266,645 - 1,266,645 Claims payable 2,394,706 - 2,394,706 Unearned Revenue 1,826,799 118,915 1,945,714 Accrued interest payable 610,023 738,279 1,348,302 Refundable deposits 108,667 3,034,009 3,142,676 Interfund Payable 2,390,944 - 2,390,944 Compensated absences - current 215,653 54,878 270,531 Current portion of long-term debt 11,485,823 12,367,593 23,853,416 Bonds and certificate of obligation payable 116,602,564 138,482,603 255,085,167 Compensated absences - long-term 2,613,074 664,957 3,278,031 Other post employment benefits 8,909,910 2,309,828 11,219,738 Net pension obligation 31,997,682 8,404,547 40,402,229 Total liabilities 188,006,360 176,084,353 364,090,713 Deferred inflows of resources Deferred charge on pension 568,576 146,153 714,729 Total deferred inflows of resources 568,576 146,153 714,729 Net position Net investment in capital assets 176,171,787 209,331,986 385,503,773 Restricted for: Debt service 4,793,558 1,581,501 6,375,059 Public safety 873,442 - 873,442 Community development 2,650,693 - 2,650,693 Tourism 10,380,764 - 10,380,764 Capital projects 27,030,441 - 27,030,441 Other Purposes 2,789,377 - 2,789,377 Unrestricted 13,196,919 75,737,790 88,934,709 Total net position 237,886,981$ 286,651,277$ 524,538,258$ CITY OF COLLEGE STATION, TEXAS Statement of Net Position September 30, 2016 The notes to financial statements are an integral part of this statement. 26 Expenses Charges for Services Operating Grants and Contributions Capital Grants and Contributions Governmental Activities Business-type Activities Total Police $ 20,858,703 $ 507,263 $ 487,302 $ - $ (19,864,138) $ - $ (19,864,138) Fire 17,663,825 1,980,844 739,380 - (14,943,601) - (14,943,601) Public works 21,028,954 2,250,366 178,902 12,635,285 (5,964,401) - (5,964,401) Parks & recreation 11,161,966 1,713,907 280 1,914,131 (7,533,648) - (7,533,648) Library 1,177,291 - - - (1,177,291) - (1,177,291) Planning & development svcs 3,440,211 2,579,587 - - (860,624) - (860,624) Information technology 4,907,473 8,835 - - (4,898,638) - (4,898,638) Fiscal services 4,146,832 3,572,710 - - (574,122) - (574,122) General government 16,152,326 262,583 1,537,216 - (14,352,527) - (14,352,527) Interest on long-term debt 3,425,529 - - - (3,425,529) - (3,425,529) Unallocated depreciation 1,299,794 - - - (1,299,794) - (1,299,794) Total governmental activities 105,262,904 12,876,095 2,943,080 14,549,416 (74,894,313) - (74,894,313) Business-type activities: Electric Fund 73,880,232 101,753,428 - 5,358,083 - 33,231,279 33,231,279 Water Fund 13,062,768 15,503,526 - 4,702,312 - 7,143,070 7,143,070 Wastewater Fund 11,995,045 15,547,324 - 3,564,856 - 7,117,135 7,117,135 Sanitation Fund 8,216,958 8,854,342 1,114,008 566,975 - 2,318,367 2,318,367 Northgate Parking Fund 946,325 1,235,798 - - - 289,473 289,473 Total business-type activities 108,101,328 142,894,418 1,114,008 14,192,226 - 50,099,324 50,099,324 Total primary government $ 213,364,232 $ 155,770,513 $ 4,057,088 $ 28,741,642 (74,894,313) 50,099,324 (24,794,989) 32,706,952 - 32,706,952 27,163,480 - 27,163,480 8,607,402 - 8,607,402 576,209 360,459 936,668 (75,177) - (75,177) 13,639,821 (13,639,821) - 82,618,687 (13,279,362) 69,339,325 7,724,374 36,819,962 44,544,336 230,162,607 249,831,315 479,993,922 $ 237,886,981 $ 286,651,277 $ 524,538,258 Other taxes City of College Station Statement of Activities For the Year Ended September 30, 2016 Program Revenues Net Revenue (Expense) and Changes in Net Position General revenues: Property taxes Sales taxes Net position - beginning Net position - ending The notes to financial statements are an integral part of this statement. Unrestricted investment earnings Loss on sale of capital assets Transfers Total general revenues, special items, and transfers Change in net position 27 General Debt Service Streets Projects Other Governmental Funds Total Governmental Funds Assets Cash and cash equivalents $ 17,779,799 $ 3,753,179 $ 27,713,164 $ 51,012,852 $ 100,258,994 Equity in investments 2,308,406 1,039,743 3,599,512 6,315,233 13,262,894 Receivables (net of allow for uncollectible) 4,544,098 155,121 345,997 755,993 5,801,209 Investments interest receivable 3,096 636 4,698 8,213 16,643 Inventories 51,617 - - 5,989,904 6,041,521 Prepaid costs 19,701 - - - 19,701 Interfund receivable 893,638 - - - 893,638 Loans receivable - - - 1,523,166 1,523,166 Total assets $ 25,600,355 $ 4,948,679 $ 31,663,371 $ 65,605,361 $ 127,817,766 Liabilities Accounts payable $ 1,422,501 $ - $ 1,412,335 $ 651,718 $ 3,486,554 Accrued liabilities 2,009,154 - - 41,118 2,050,272 Retainage payable 6,082 - 202,477 18,187 226,746 Customer construction advances 1,266,645 - - - 1,266,645 Interfund payable - - - 2,390,944 2,390,944 Refundable deposits 108,667 - - - 108,667 Total liabilities 4,813,049 - 1,614,812 3,101,967 9,529,828 Deferred inflows of resources Unavailable revenue-loans receivable - - - 241,001 241,001 Unavailable revenue-property taxes 192,942 155,121 - - 348,063 Unavailable revenue-other 1,461,162 - 345,997 13,633 1,820,792 Total deferred inflows of resources 1,654,104 155,121 345,997 254,634 2,409,856 Fund balances Nonspendable 71,318 - - 5,989,904 6,061,222 Restricted - 4,793,558 5,729,157 37,320,114 47,842,829 Committed - - - 14,050,264 14,050,264 Assigned 2,171,129 - 23,973,405 4,888,478 31,033,012 Unassigned 16,890,755 - - - 16,890,755 Total fund balances 19,133,202 4,793,558 29,702,562 62,248,760 115,878,082 Total liabilities, deferred inflows of resources, and fund balances $ 25,600,355 $ 4,948,679 $ 31,663,371 $ 65,605,361 $ 127,817,766 The notes to the financial statements are an integral part of this statement. CITY OF COLLEGE STATION, TEXAS Balance Sheet Governmental Funds September 30, 2016 28 Total fund balance per balance sheet:115,878,082$ 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 249,703,673 Deferred outflows of resources not reported in governmental funds: Pension contributions after measurement date 4,224,010$ Difference in projected and actual earnings 9,924,069 Difference in expected and actual experience 586,384 Difference in assumption changes 2,156,660 Deferred charges on debt refundings 1,772,035 18,663,158 Deferred inflows of resources not reported in the governmental funds: Difference in expected and actual experience (568,576) 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 (13,520,232) Due in more than one year (158,125,617) (171,645,849) Interest payable on long-term debt does not require current financial resources and is not reported in the governmental funds balance sheet.(610,023) Allowance for loans receivable (65,532) Other long-term assets are not available to pay for current period expenditures and, therefore, are reported as unavailable revenue in the funds 2,409,856 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 34,700,523 Liabilities (6,220,663) Net amount allocated to business-type activities (4,357,668)$ 24,122,192 Net position of governmental activities 237,886,981$ The notes to the financial statements are an integral part of this statement. CITY OF COLLEGE STATION, TEXAS Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position September 30, 2016 29 General Debt Service Streets Projects Other Governmental Funds Total Governmental Funds Revenues Ad valorem taxes $ 18,442,879 $ 13,733,453 $ - $ 182,557 $ 32,358,889 Sales taxes 27,163,480 - - - 27,163,480 Other taxes 3,131,535 - - 5,475,867 8,607,402 Licenses and permits 2,132,802 - - - 2,132,802 Intergovernmental 1,373,950 - 46,951 1,577,232 2,998,133 Charges for services 3,809,206 - - 2,759,222 6,568,428 Fines, forfeits, and penalties 3,255,051 - - 263,487 3,518,538 Investment income 148,302 32,300 112,892 282,715 576,209 Rents and royalties 187,328 - - - 187,328 Contributions 8,880 - - 1,944,165 1,953,045 Other 434,537 968 15,865 34,667 486,037 Total revenues 60,087,950 13,766,721 175,708 12,519,912 86,550,291 Expenditures Police 20,170,450 - - 14,037 20,184,487 Fire 16,916,819 - - - 16,916,819 Public works 11,162,508 - 127,884 1,169,152 12,459,544 Parks and recreation 9,279,126 - - 405,442 9,684,568 Library 1,098,326 - - - 1,098,326 Planning and development services 3,243,768 - - 109,193 3,352,961 Information technology 4,491,009 - - - 4,491,009 Fiscal services 3,733,550 - 1,276 251,526 3,986,352 General government 5,524,471 - - 1,223,883 6,748,354 Contributions 1,220,251 - - 2,827,634 4,047,885 Other 863 - - 5,032 5,895 Capital outlay 667,574 - 8,959,158 4,156,398 13,783,130 Debt service Principal retirement - 8,660,000 - - 8,660,000 Interest on long-term debt - 3,769,711 - - 3,769,711 Debt issuance costs - 147,886 139,537 24,552 311,975 Intergovernmental - - 2,105,813 - 2,105,813 Total expenditures 77,508,715 12,577,597 11,333,668 10,186,849 111,606,829 Excess (deficit) of revenues over (under) expenditures (17,420,765) 1,189,124 (11,157,960) 2,333,063 (25,056,538) Other financing sources (uses) Issuance of bonds - - 20,043,865 6,691,135 26,735,000 Issuance of refunding bonds - 13,915,000 - - 13,915,000 Premium on bonds issued - 2,047,190 1,763,241 519,075 4,329,506 Payment to refunded bond escrow agent - (16,087,122) - - (16,087,122) Transfers in 16,507,346 915,318 - 3,676,038 21,098,702 Transfers out (2,376,443) - (628,193) (4,651,859) (7,656,495) Total other financing sources (uses) 14,130,903 790,386 21,178,913 6,234,389 42,334,591 Net change in fund balances (3,289,862) 1,979,510 10,020,953 8,567,452 17,278,053 Fund balances - beginning 22,423,064 2,814,048 19,681,609 53,681,308 98,600,029 Fund balances - ending $ 19,133,202 $ 4,793,558 $ 29,702,562 $ 62,248,760 $ 115,878,082 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, 2016 30 Net change in fund balance - total governmental funds 17,278,053$ 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.13,783,131 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 228,495 The effect of various miscellaneous transactions involving capital assets (e.g., sales, trade ins, and capital contributions) is to increase/decrease net assets.11,729,763 Some property tax and loan revenues will not be collected for several months after the City's fiscal year end. These are not considered "available" revenues in the governmental funds until received. 237,060 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.351,917 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.(13,860,226) 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 amortized 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 (22,180,000)$ Certificates of Obligation issued (18,470,000) Bond principal retirement 8,660,000 Payment to refunded bond escrow agent 16,087,122 (15,902,878) 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 government funds. Compensated absences 202,346 Net pension obligation (2,497,470) Other post retirement benefits (804,796) (3,099,920) Bond premiums are recognized as an other financing source in the governmental funds, but are combined with bond liabilities on the statement of net position. Premiums are amortized over the life of the bonds.(4,703,474) 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 2,045,713 Net amount allocated to business activities (363,260) 1,682,453 Change in net position of governmental activities 7,724,374$ 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, 2016 31 Governmental Activities Electric Water Wastewater Other Enterprise Funds Total Enterprise Funds Internal Service Funds Assets Current assets Cash and cash equivalents $ 24,561,553 $ 4,912,337 $ 6,820,026 $ 2,083,409 $ 38,377,325 $ 21,813,664 Equity in investments 3,190,166 638,037 885,816 270,149 4,984,168 2,832,907 Restricted assets Cash and cash equivalents 3,471,785 7,130,295 8,736,028 - 19,338,108 - Investments 450,931 926,115 1,134,675 - 2,511,721 - Receivables (net of allow for uncollectible) 13,803,111 1,904,386 1,746,856 1,066,772 18,521,125 15,776 Investments interest receivable 4,753 2,042 2,637 353 9,785 3,698 Interfund receivable - - 1,497,306 - 1,497,306 - Inventories 2,700,639 383,410 32,762 38,452 3,155,263 90,616 Prepaid costs - - - - - 2,500 Total current assets 48,182,938 15,896,622 20,856,106 3,459,135 88,394,801 24,759,161 Noncurrent assets Equity in joint venture - - - 14,686,316 14,686,316 - Loans receivable - - - 3,610,000 3,610,000 - Capital assets Utility plant 201,309,686 184,104,161 142,021,684 - 527,435,531 - Buildings - - - 5,976,030 5,976,030 786,525 Machinery and equipment - - - 6,697,355 6,697,355 25,588,425 Less accumulated depreciation (93,453,085) (61,401,701) (58,470,701) (5,713,796) (219,039,283) (16,433,588) Construction in progress 11,445,298 6,318,227 5,756,500 336,388 23,856,413 - Land - - - 690,750 690,750 - Total capital assets 119,301,899 129,020,687 89,307,483 7,986,727 345,616,796 9,941,362 Total noncurrent assets 119,301,899 129,020,687 89,307,483 26,283,043 363,913,112 9,941,362 Total assets 167,484,837 144,917,309 110,163,589 29,742,178 452,307,913 34,700,523 Deferred outflows of resources Deferred charge on pensions 2,151,594 806,621 750,920 757,164 4,466,299 750,365 Deferred charge on refunding 694,881 756,539 264,947 33,533 1,749,900 - Total deferred outflows of resources 2,846,475 1,563,160 1,015,867 790,697 6,216,199 750,365 Liabilities Current liabilities Accounts payable 7,664,843 412,006 389,172 268,235 8,734,256 1,740,064 Accrued liabilities 427,714 74,325 99,427 145,124 746,590 80,234 Unearned revenue - - - 118,915 118,915 - Compensated absences 24,758 7,770 12,518 9,832 54,878 8,046 Retainage payable 141,498 241,774 15,514 29,112 427,898 - Claims payable - - - - - 2,394,706 Payable from restricted assets Accrued interest payable 284,113 249,948 180,414 23,804 738,279 - Refundable deposits 2,699,639 310,397 23,973 - 3,034,009 - Certificates of obligation 2,054,905 1,263,738 990,013 210,000 4,518,656 - General obligation bonds 1,994,330 2,975,667 2,435,766 443,174 7,848,937 - Total current liabilities 15,291,800 5,535,625 4,146,797 1,248,196 26,222,418 4,223,050 Noncurrent liabilities Certificates of obligation 36,873,125 22,077,869 19,863,502 3,400,000 82,214,496 - General obligation bonds 17,867,862 23,555,261 14,203,636 641,348 56,268,107 - Compensated absences 299,993 94,147 151,680 119,137 664,957 97,492 Post employment benefits 1,040,973 357,922 511,318 399,615 2,309,828 449,069 Net pension obligation 4,018,519 1,494,568 1,449,305 1,442,155 8,404,547 1,451,052 Total noncurrent liabilities 60,100,472 47,579,767 36,179,441 6,002,255 149,861,935 1,997,613 Total liabilities 75,392,272 53,115,392 40,326,238 7,250,451 176,084,353 6,220,663 Deferred inflows of resources Deferred charge on pensions 68,150 24,658 27,275 26,070 146,153 27,465 Total deferred inflows of resources 68,150 24,658 27,275 26,070 146,153 27,465 Net Position Net investment in capital assets 60,511,675 83,796,812 58,121,294 6,902,205 209,331,986 9,941,363 Restricted for Debt service 435,978 565,699 579,824 - 1,581,501 - Unrestricted 33,923,237 8,977,908 12,124,825 16,354,149 71,380,119 19,261,397 Total net position $ 94,870,890 $ 93,340,419 $ 70,825,943 $ 23,256,354 282,293,606 $ 29,202,760 Adjustment for the cumulative effect of the consolidation of internal services fund activities related to enterprise funds 4,357,671 Net position of business-type activities 286,651,277$ The notes to the financial statements are an integral part of this statement. Business-type Activities CITY OF COLLEGE STATION, TEXAS Statement of Net Position Proprietary Funds September 30, 2016 32 Governmental Activities Electric Water Wastewater Other Enterprise Funds Total Enterprise Funds Internal Service Funds Operating revenues Charges for services $ 98,904,688 $ 14,561,625 $ 14,923,226 $ 9,746,815 $ 138,136,354 $ 10,746,451 Fines, forfeits, and penalties - - - 271,189 271,189 - Premiums - - - - - 11,746,175 Rents and royalties - 4,269 - - 4,269 - Other 2,403,407 937,632 291,112 36,707 3,668,858 127,884 Total operating revenues 101,308,095 15,503,526 15,214,338 10,054,711 142,080,670 22,620,510 Operating expenses Electric operations 65,051,851 - - - 65,051,851 - Salaries and benefits - 2,889,489 2,592,115 2,753,999 8,235,603 2,636,336 Supplies - 677,069 847,259 402,745 1,927,073 1,092,422 Maintenance - 104,398 193,160 697,624 995,182 88,654 Purchased professional services - 277,545 331,678 1,098,005 1,707,228 500,969 Purchased property services - 1,415,533 1,165,713 1,505,082 4,086,328 54,777 Other purchased services - 320,420 498,204 1,471,038 2,289,662 808,256 Claims - - - - - 9,106,419 Administration fees - - - - - 762,579 Contributions - - - 52,716 52,716 1,593,770 Premiums - - - - - 1,750,592 Depreciation 6,333,232 4,867,934 4,871,965 1,178,512 17,251,643 2,257,653 Other 76,572 258,410 71,678 33,644 440,304 385,423 Total operating expenses 71,461,655 10,810,798 10,571,772 9,193,365 102,037,590 21,037,850 Operating income 29,846,440 4,692,728 4,642,566 861,346 40,043,080 1,582,660 Nonoperating revenues (expenses) Investment income 189,239 49,067 108,006 14,147 360,459 131,726 Gain (loss) on disposal of assets (1,826) (111,311) 107,429 26 (5,682) 202,121 Earnings in joint venture - - - 1,114,008 1,114,008 - Interest payments (2,393,304) (1,738,137) (1,465,764) (211,387) (5,808,592) - Debt issuance cost (57,748) (175,787) (56,635) - (290,170) - Other, net 445,333 (215,099) 225,557 35,403 491,194 (41,974) Total nonoperating revenues (expenses) (1,818,306) (2,191,267) (1,081,407) 952,197 (4,138,783) 291,873 Income before capital contributions and transfers 28,028,134 2,501,461 3,561,159 1,813,543 35,904,297 1,874,533 Capital contributions and transfers Capital contributions 5,358,083 4,702,312 3,564,856 566,975 14,192,226 (26,435) Transfers in 736,172 - - 417,774 1,153,946 271,000 Transfers out (8,210,044) (2,729,980) (2,456,468) (1,397,275) (14,793,767) (73,385) Total capital contributions and transfers (2,115,789) 1,972,332 1,108,388 (412,526) 552,405 171,180 Change in net position 25,912,345 4,473,793 4,669,547 1,401,017 36,456,702 2,045,713 Net position - beginning 68,958,545 88,866,626 66,156,396 21,855,337 245,836,904 27,157,047 Net position - ending $ 94,870,890 $ 93,340,419 $ 70,825,943 $ 23,256,354 282,293,606 $ 29,202,760 Adjustment for the cumulative prior year effect of the consolidation of internal service fund activities related to enterprise funds 3,994,411 Adjustment for the FY 16 consolidation of internal services fund activities related to enterprise funds 363,260 Net position of business-type activities 286,651,277$ 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, 2016 Business-type Activities 33 Governmental Activities Other Total Internal Enterprise Enterprise Service Electric Water Wastewater Funds Funds Funds Cash flows from operating activities: Cash received from customers 101,547,228$ 16,168,481$ 15,330,258$ 10,300,723$ 143,346,690$ 22,678,506$ Cash payments to suppliers for goods and services (63,532,693) (4,187,419) (3,402,549) (5,721,770) (76,844,431) (15,489,718) Cash payments to employees for services (5,601,732) (2,330,847) (2,008,487) (2,119,419) (12,060,485) (1,975,089) Customer deposits received (146,203) (6,967) 3,204 (4,200) (154,166) - Cash received for reimbursed expenses - - - - - - Cash paid for miscellaneous services - (215,099) - - (215,099) (52,882) Cash received for miscellaneous revenues 445,333 - 225,557 34,885 705,775 10,908 Net cash provided (used) by operating activities 32,711,933 9,428,149 10,147,983 2,490,219 54,778,284 5,171,725 Cash flows from noncapital financing activities: Transfers in from other funds 736,172 - - 417,774 1,153,946 271,000 Transfers out to other funds (8,210,044) (2,729,980) (2,456,468) (1,397,275) (14,793,767) (73,385) Net cash provided (used) by noncapital financing activities (7,473,872) (2,729,980) (2,456,468) (979,501) (13,639,821) 197,615 Cash flows from capital and related financing activities: Acquisition and construction of capital assets (17,409,783) (8,618,921) (6,729,495) (1,005,747) (33,763,946) (2,657,464) Capital grants and contributions 5,358,083 4,702,312 3,564,856 566,975 14,192,226 (26,435) Proceeds from sale of assets 8,518 4,450 107,429 - 120,397 202,121 Proceeds from certificates of obligation and general obligation bonds 335 7,901,750 298 - 7,902,383 - Principal paid on certificates of obligation and general obligation bonds (3,766,186) (3,648,100) (3,105,714) (443,174) (10,963,174) - Interest paid on certificates of obligation and general obligation bonds (2,387,848) (1,831,167) (1,519,459) (211,663) (5,950,137) - Net cash provided (used) by capital and related financing activities (18,196,881) (1,489,676) (7,682,085) (1,093,609) (28,462,251) (2,481,778) Cash flows from investing activities: Purchase of investments (11,189,568) (4,622,016) (6,427,110) (828,625) (23,067,319) (8,539,444) Proceeds from sale and maturities of investment securities 9,415,464 3,724,237 5,788,881 698,431 19,627,013 7,660,635 Investment income 189,239 49,067 108,006 14,147 360,459 129,556 Net cash provided (used) by investing activities (1,584,865) (848,712) (530,223) (116,047) (3,079,847) (749,253) Net increase (decrease) in cash and cash equivalents 5,456,315 4,359,781 (520,793) 301,062 9,596,365 2,138,309 Cash and cash equivalents, Oct. 1 22,577,023 7,682,851 16,076,847 1,782,347 48,119,068 19,675,355 Cash and cash equivalents, Sept. 30 28,033,338$ 12,042,632$ 15,556,054$ 2,083,409$ 57,715,433$ 21,813,664$ Reconciliation of operating income to net cash provided by operating activities: Operating income 29,846,440$ 4,692,728$ 4,642,566$ 861,346$ 40,043,080$ 1,582,660$ Adjustment to reconcile operating income to net cash provided (used) by operating activities: Depreciation, bad debt expense, inventory loss 6,391,381 4,924,197 4,936,002 1,208,102 17,459,682 2,257,653 Miscellaneous nonoperating revenues 435,033 - 225,557 34,885 695,475 10,908 Miscellaneous nonoperating expenses - (215,099) - - (215,099) (52,882) Changes in fair market value of investments 10,300 - - - 10,300 - Changes in deferred inflows and outflows (1,485,619) (548,329) (496,781) (503,676) (3,034,405) (511,455) Changes in assets and liabilities: Change in accounts receivable 239,133 664,955 115,920 116,313 1,136,321 57,996 Change in inventory (525,606) 2,213 (9,597) (11,433) (544,423) 103,864 Change in prepaid costs - - - - - - Change in accounts payable (3,779,666) (632,922) 152,970 40,426 (4,219,192) 640,069 Change in refundable deposits (146,203) (6,967) 3,204 (4,200) (154,166) - Change in claims payable - - - - - 421,664 Change in accrued liabilities 45,120 9,156 19,069 36,945 110,290 9,964 Change in deferred revenue - - - 96,354 96,354 - Change in accrued vacation (7,526) (16,850) (6,010) 55 (30,331) (9,354) Change in OPEB 8,191 (25,966) 2,842 15,014 81 36,358 Change in net pension obligation 1,680,955 581,033 562,241 600,088 3,424,317 624,280 Total adjustments 2,865,493 4,735,421 5,505,417 1,628,873 14,735,204 3,589,065 Net cash provided (used) by operating activities 32,711,933$ 9,428,149$ 10,147,983$ 2,490,219$ 54,778,284$ 5,171,725$ CITY OF COLLEGE STATION, TEXAS Statement of Cash Flows Proprietary Funds For the Fiscal Year Ended September 30, 2016 Business-type Activities - Enterprise Funds 34 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2016 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). 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 its 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. However, interfund services provided and used are not eliminated in the process of consolidation for government-wide financial statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses for a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include (1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. C. Measurement Focus, Basis of Accounting and Financial Statement Presentation 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 and relates to the timing of the measurement made, regardless of the measurement focuses applied. 35 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2016 City of College Station, Texas 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. 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 36 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2016 City of College Station, Texas 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 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 operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services in connection with the fund’s principal ongoing operations. The principal operating revenues of the City’s enterprise 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. 37 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2016 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 2015 for the fiscal year ending September 30, 2016. 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 Manager shall designate the City’s Investment Officer with whom responsibility and authority for investment transactions resides. 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 that 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. 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 pools. 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 and GASB Statement No. 72, Fair Value Measurement and Application. 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. The City has adopted Statement No. 79, Certain External Investment Pools and Pool Participants for the fiscal year ended September 30, 2016. This statement establishes criteria for an external investment pool to qualify for making the election to measure all of its investments at amortized cost for financial reporting purposes. There are no impacts of this pronouncement on the financial statements as presented. 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. 38 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2016 City of College Station, Texas Assets held for resale are cemetery plots which are 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 are in the non-major governmental Cemetery funds and are reported as inventory in the financial statements and accounted for using the purchase method. Payments made to vendors for services that will benefit periods beyond September 30, 2016, 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 Transactions and Receivables/Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds”. Any residual balances outstanding between 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. The costs of normal maintenance and repairs for electric, water, and wastewater utilities 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 the 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. 39 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2016 City of College Station, Texas Depreciation of all assets is recorded and calculated using the straight-line method over the following estimated useful lives: Electric system 1-50 Years Water system 2-50 Years Wastewater system 2-50 Years Infrastructure 10-50 Years Buildings and building improvements 5-50 Years Land improvements 10-45 Years Machinery and equipment 5-20 Years Motor vehicles 3-12 Years Furniture, fixtures and office equipment 5-20 Years Compensated Absences Employees are credited with vacation at rates of 10 to 20 days per year, depending upon length of service. Carryover of unused vacation time from one year to the next is allowed for a maximum of two years. Upon termination, the respective employees are paid for any accrued vacation not taken (up to the two year maximum). Accumulated vacation is accrued when earned in the government- wide and proprietary fund financial statements. No liability has been recorded in the governmental fund financial statements. Employees are credited with sick leave at the rate of one day per month. There is no maximum to the number of sick days that each employee can accumulate. Because the City does not pay employees for unused accumulated sick leave, no related liability has been recorded in the financial statements. Changes in compensated absences for the year ending September 30, 2016 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 is 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. Amount Due Amount Due Beginning Total Ending Within One Greater than Activity Type:Balance Earned Paid Balance Year One Year Governmental 2,986,194$ 70,200$ (227,667)$ 2,828,727$ 215,653$ 2,613,074$ Business-type 750,018 26,998 (57,181)719,835 54,878 664,957 Total 3,736,212$ 97,198$ (284,848)$ 3,548,562$ 270,531$ 3,278,031$ 40 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2016 City of College Station, Texas Pensions For the year ended September 30, 2015, the City adopted GASB Statement No. 68, Accounting and Financial Reporting for Pensions. For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions and pension expense, information about the Fiduciary Net Position of the Texas Municipal Retirement System (TMRS), and additions to/deductions from TMRS’s Fiduciary Net Position have been determined on the same basis as they are reported by TMRS. For this purpose, plan contributions are recognized in the period that compensation is reported for the employee, which is when contributions are legally due. Benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Fund Equity In the fund financial statements, governmental funds report fund balance classifications that comprise a hierarchy based primarily on the specific purposes for which amounts in those funds can be spent. In the fiscal year ended September 30, 2009, the City adopted the Governmental Accounting Standards Board Statement (GASBS) number 54, “Fund Balance Reporting and Governmental Fund Type Definitions.” GASBS 54 provides for and the City uses the following classifications: Nonspendable Fund Balance includes amounts that cannot be spent because they are not in spendable form. The “not in spendable form” criterion includes items that are not expected to be converted to cash, for example, inventories and prepaid amounts. It also includes the long-term amount of loans receivable as well as property acquired for resale. Restricted Fund Balance is reported when constraints placed on the use of resources are either (a) externally imposed by creditors, grantors, contributors, or laws or regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation. Committed Fund Balance includes amounts that can only be used for specific purposes pursuant to 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, through the budget ordinance, 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. 41 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2016 City of College Station, Texas Net Position Net position represents the difference between assets plus deferred outflows of resources and liabilities plus deferred inflows of resources. Net investment in capital assets consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowing used for the acquisition, construction or improvements of those assets, and adding back unspent proceeds. Net position is reported as restricted when there are limitations imposed on their use either through the enabling legislations adopted by the City or through external restrictions imposed by creditors, grantors or laws or regulations of other governments. Use of Estimates In preparing financial statements in conformity with generally accepted accounting principles, management is required to make estimates and assumptions that affect the reported amount of assets, deferred outflows of resources, liabilities, and deferred inflows of resources and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reporting period. Actual results could differ from these estimates. New Accounting Pronouncements, Changes in Accounting Principles, and Restatements For the fiscal year ended September 30, 2016, the City adopted the following pronouncements: GASB Statement No. 72, Fair Value Measurement and Application, addresses accounting and financial reporting issues related to fair value measurements. The definition of fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. This Statement provides guidance for determining a fair value measurement for financial reporting purposes. This Statement also provides guidance for applying fair value to certain investments and disclosures related to all fair value measurements. GASB Statement No. 73, Accounting and Financial Reporting for Pensions and Related Assets That Are Not within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68, is to improve the usefulness of information about pensions included in the general purpose external financial reports of state and local governments for making decisions and assessing accountability. This Statement results from a comprehensive review of the effectiveness of existing standards of accounting and financial reporting for all postemployment benefits with regard to providing decision-useful information, supporting assessments of accountability and inter period equity, and creating additional transparency. GASB Statement No. 76, The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments. The objective of this Statement is to identify—in the context of the current governmental financial reporting environment—the hierarchy of generally accepted accounting principles (GAAP). The “GAAP hierarchy” consists of the sources of accounting principles used to prepare financial statements of state and local governmental entities in conformity with GAAP and the framework for selecting those principles. GASB Statement No. 79, Certain External Investment Pools and Pool Participants. This Statement addresses accounting and financial reporting for certain external investment pools and pool participants. Specifically, it establishes criteria for an external investment pool to qualify for making the election to measure all of its investments at amortized cost for financial reporting purposes. The following guidance issued by GASB is effective for FY 2017 or FY 2018 and is expected to be applicable to the City: Statement No. 74 and Statement No. 75, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans and Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions both establish new accounting and financial reporting requirements for governments whose employees are provided with OPEB, as well as for certain nonemployer governments that have a legal obligation to provide financial support for OPEB provided to the 42 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2016 City of College Station, Texas employees of other entities. The adoption of this statement is expected to require the City to restate net position. Statement No. 77, Tax Abatement Disclosures requires governments that enter into tax abatement agreements to disclose a brief descriptive information, such as the tax being abated, the authority under which tax abatements are provided, eligibility criteria, the mechanism by which taxes are abated, provisions for recapturing abated taxes, and the types of commitments made by tax abatement recipients; the gross dollar amount of taxes abated during the period and commitments, other than to abate taxes as part of a tax abatement agreement. GASB Statement No. 78, Pensions Provided through Certain Multiple-Employer Defined Benefit Pension Plans is effective for reporting periods beginning after December 15, 2015. The objective of this Statement is to address a practice issue regarding the scope and applicability of Statement No. 68, Accounting and Financial Reporting for Pensions. This issue is associated with pensions provided through certain multiple-employer defined benefit pension plans and to state or local governmental employers whose employees are provided with such pensions. Statement No. 80, Blending Requirements for Certain Component Units—an amendment of GASB Statement No. 14 requires the additional evaluation of criterion requiring the blending of a component unit incorporated as a not-for-profit corporation in which the primary government is the sole corporate member. The additional criterion does not apply to component units included in the financial reporting entity pursuant to the provisions of Statement No. 39, Determining Whether Certain Organizations Are Component Units. 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 Fiscal Services 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 $50,000. 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. 43 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2016 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 that 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 2016. These budget amendments included the following appropriations: Encumbrance Roll $ 2,491,387 Parks and Recreation Improvements 321,839 Veterans Park Electrical Upgrades 75,000 Portable Stage 160,000 Police Department Grants Reimbursement 156,197 Police Department Holiday Pay 125,000 Police Cameras 50,440 Police Seizure Purchases 37,000 HUD Repayment 2,390,944 E-Citation Writers in Court Technology 18,900 Staff Accountant Position (1.0 FTE) 13,870 Meter Reading Contract Labor 127,576 UCS Billing Services Credit Card Fees 40,000 Drainage Vacon Equipment 57,890 Senior Planner Position (1.0 FTE) - Compensation Analyst Position (1.0 FTE) - TOTAL $ 6,066,043 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. 44 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2016 City of College Station, Texas B. Excess of Expenditures over Appropriations The amounts of any excesses of expenditures over appropriations during fiscal year 2016 and the funds in which they occurred are as follows: Property and Casualty Fund $ 500,938 Drainage Utility Fund 188,459 Parks Projects Fund 83,488 Fleet Maintenance Fund 74,368 Memorial Cemetery Fund 6,902 Court Security Fee Fund 6,527 Texas Ave Cemetery Endowment Fund 3,100 TOTAL $ 863,782 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. Fair Value Weighted Average Maturity (days) Bank Depository Accounts $ 5,000,000 1 Bank Depository Money Market Account 152,205,598 1 Texas Local Government Investment Pool 23,091,177 1 Certificates of Deposit 9,072,706 284 US Agencies 14,010,300 644 $ 203,379,781 Portfolio Weighted Average Maturity 58 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). 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 with which the CD’s are held. 45 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2016 City of College Station, Texas 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 fair 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. AAA-rated No-Load Money Market Mutual Funds registered with the Securities and Exchange Commission that invest exclusively in investments described in this section. Must have a weighted average maturity of less than 90 days. 6. 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 fair 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 fair market value of the shares in each of the pools. As of September 30, 2016, 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, authorized pools and the City’s depository accounts, 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 40%. As of September 30, 2016, the issuers whose securities represent the City's investment portfolio were as follows: American Momentum Bank (5%) and U.S. Agencies (7%). 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. For the fiscal year ended September 30, 2016, the City adopted GASB Statement No. 72, Fair Value Measurement and Application, which addresses accounting and financial reporting issues related to fair value measurements. GASB Statement No. 72, Fair Value Measurement and Application, establishes a framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy are as follows: 46 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2016 City of College Station, Texas Level 1 - Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Plan has the ability to access. Level 2 - Inputs to valuation methodology include, (a) quoted prices for similar assets or liabilities in active markets, (b) quoted prices for identical or similar assets or liabilities in inactive markets, (c) inputs other than quoted prices that are observable for the asset or liability, (d) inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the level 2 input must be observable for substantially the full term of the asset or liability. Level 3 - Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. If a price for an identical asset or liability is not observable, a government should measure fair value using another valuation technique that maximizes the use of relevant observable inputs and minimizes the use of unobservable inputs. If the fair value of an asset or a liability is measured using inputs from more than one level of the fair value hierarchy, the measurement is considered to be based on the lowest priority level input that is significant to the entire measurement. The following is a description of the valuation methodologies used for assets measured at fair value. There have been no changes in the methodologies used at September 30, 2016 and 2015. The City has recurring fair value measurements as presented in the table below. Fair Value Measurements Using Quoted Prices In Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description 30-Sep-16 Level 1 Level 2 Level 3 Cash & cash equivalent Bank deposits $ 5,000,000 $ - $ - $ - BB&T Money Market account 152,205,598 - - - Total cash & cash equivalents 157,205,598 - - - Investments measured at amortized costs: Investment pools: Texpool 17,961,157 - - - Investments measured at net asset value (NAV): Investment pools: TexSTAR 5,130,020 - - - Investments measured at fair value level American Momentum Bank certificates of deposit 9,072,706 - - - U.S. government agency securities: Federal Home Loan Bank 6,005,190 - 6,005,190 - Federal Farm Credit Bank 3,003,810 - 3,003,810 - Federal Home Loan Mortgage Corp 5,001,300 - 5,001,300 - U.S. treasury notes - - - - Total investments 46,174,183 14,010,300 Total Cash and Investments at fair value $ 203,379,781 $ - $ 14,010,300 $ - The City’s investments in certain Investment Pools are measured at amortized costs or net asset value (NAV) and are exempt from fair value reporting. The Texpool investment pool is an external investment pool measured at amortized cost. In order to meet the criteria to be recorded at amortized cost, the investment pool must transact at a stable 47 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2016 City of College Station, Texas net asset value per share and maintain certain maturity, quality, liquidity and diversification requirements within the investment pool The investment pool transacts at a net asset value of $1.00 per share, has weighted average maturities of 60 days or less and weighted average lives of 120 days or less, investments held are highly rated by nationally recognized statistical rating organizations, have no more than 5% of portfolio with one issuer (excluding U.S. government securities), and can meet reasonable foreseeable redemptions. Texpool has a redemption notice period of one day and may redeem daily. The investment pool’s authority may only impose restrictions on redemptions in the event of a general suspension of trading on major securities markets, general banking moratorium or national state of emergency that affects the pool’s liquidity. The TexSTAR investment pool is an external investment pool measured at NAV. The strategy is to seek preservation of principal, liquidity and current income through investment in a diversified portfolio of short term marketable securities. The City has no unfunded commitments related to the pools. TexSTAR has a redemption notice period of one day and may redeem daily. The investment pool’s authority may only impose restrictions on redemptions in the event of a general suspension of trading on major securities markets, general banking moratorium or national state of emergency that affects the pool’s liquidity. U.S. Government Agency Securities and U.S. Treasury Bonds and Notes, classified in Level 2 of the fair value hierarchy, are valued using a matrix pricing technique. Matrix pricing is used to value securities based on the securities’ relationship to benchmark quoted prices. Certificates of Deposit are classified as cash in the fair value hierarchy. B. Receivables Receivables as of year-end for the City's individual major funds, non-major and internal service funds in the aggregate, including the applicable allowances for uncollectible accounts, are as follows: Governmental Activities General Debt Service Street Projects Nonmajor Internal Service Funds Total Taxes: Property $ 192,942 $ 155,121 $ - $ - $ - $ 348,063 Beverage 136,913 - - - - 136,913 Sales 2,315,095 - - - - 2,315,095 Subtotal taxes 2,644,950 155,121 - - - 2,800,071 Grants 91,196 - - 505,495 - 596,691 Charges for services 1,831,949 - 345,997 277,355 63,552 2,518,853 Miscellaneous 147 - - - - 147 Total gross governmental 4,568,242 155,121 345,997 782,850 63,552 5,915,762 Less: Allowance for uncollectible accounts (24,144) - - (92,389) (47,776) (164,309) Net total receivables $ 4,544,098 $ 155,121 $ 345,997 $ 690,461 $ 15,776 $ 5,751,453 Business-type activities Electric Water Wastewater Nonmajor Internal Service Funds Total Charges for services $ 15,004,833 $1,990,404 $ 1,918,907 $ 1,160,344 $ - $ 20,074,488 Less: Allowance for uncollectible accounts (1,201,722) (86,018) (172,051) (93,572) - (1,553,363) Net total receivables $ 13,803,111 $1,904,386 $ 1,746,856 $ 1,066,772 $ - $ 18,521,125 48 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2016 City of College Station, Texas 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; $801,263 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); three Community Development Housing Reconstruction Program Lien Notes held by the City which total to $221,903. 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: Due from Related Party Year Ended September 30, Principal Interest 2017 $ 210,000 $ 156,560 2018 220,000 149,135 2019 230,000 141,610 2020 240,000 133,448 2021 250,000 124,335 2022-2026 1,430,000 462,762 2027-2029 1,030,000 125,573 $ 3,610,000 $ 1,293,423 C. Capital Assets Capital asset activity for the year ended September 30, 2016 was as follows: Governmental Activities Balance Increases Decreases Adjustments Balance Capital Assets, not being depreciated Land $ 34,864,726 $ 1,035,382 $ - $ - $ 35,900,108 Construction in progress 11,983,259 14,255,968 (7,182,275) 19,056,952 Total capital assets not being depreciated 46,847,985 15,291,350 (7,182,275) - 54,957,060 Capital assets, being depreciated Buildings and building improvements 39,559,735 - (14,777) - 39,544,958 Improvements other than buildings 45,085,928 1,194,728 (122,645) - 46,158,011 Machinery and equipment 38,852,531 4,608,519 (1,971,209) (13,852) 41,475,989 Infrastructure 281,207,693 16,581,378 (65,000) - 297,724,071 Total capital assets, being depreciated 404,705,887 22,384,625 (2,173,631) (13,852) 424,903,029 Less accumulated depreciation for: Buildings and building improvements 13,463,222 1,527,709 (197,041) - 14,793,890 Improvements other than buildings 20,719,556 2,610,809 (14,777) - 23,315,588 Machinery and equipment 26,336,052 3,090,144 (1,700,780) (25,438) 27,699,978 Infrastructure 145,581,377 8,889,221 (65,000) - 154,405,598 Total accumulated depreciation 206,100,207 16,117,883 (1,977,598) (25,438) 220,215,054 Total capital assets being depreciated, net 198,605,680 6,266,742 (196,033) 11,586 204,687,975 Governmental type activities capital assets, net $ 245,453,665 $ 21,558,092 $ (7,378,308) $ 11,586 $ 259,645,035 49 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2016 City of College Station, Texas Business-Type Activities Beginning Balance Increases Decreases Adjustments Ending Balance Capital assets, not being depreciated Land $ 690,750 $ - $ - $ - $ 690,750 Construction in progress 13,300,009 18,145,535 (7,589,131) - 23,856,413 Total capital assets, not being depreciated 13,990,759 18,145,535 (7,589,131) - 24,547,163 Capital assets, being depreciated Electric system 192,487,181 9,040,644 (218,139) - 201,309,686 Water system 176,715,471 7,683,499 (294,809) - 184,104,161 Wastewater system 137,872,507 4,345,932 (196,755) - 142,021,684 Buildings and building improvements 5,737,679 238,351 - - 5,976,030 Machinery and equipment 6,276,691 566,975 (146,311) - 6,697,355 Total capital assets, being depreciated 519,089,529 21,875,401 (856,014) - 540,108,916 Less accumulated depreciation for: Electric system 87,328,487 6,342,737 (218,139) - 93,453,085 Water system 56,710,870 4,983,694 (292,863) - 61,401,701 Wastewater system 53,795,491 4,871,966 (196,756) - 58,470,701 Buildings and building improvements 1,978,831 148,975 - - 2,127,806 Machinery and equipment 2,702,764 1,029,537 (146,311) - 3,585,990 Total accumulated depreciation 202,516,443 17,376,909 (854,069) - 219,039,283 Total capital assets being depreciated, net 316,573,086 4,498,492 (1,945) - 321,069,633 Business type activities capital assets, net $ 330,563,845 $ 22,644,027 $ (7,591,076) $ - $ 345,616,796 Depreciation expense for fiscal year 2016 was charged as follows: Police $ 146,573 Fire 276,186 Public Works 9,801,384 Parks and Recreation 1,506,122 Library 78,965 Planning and Development Services 8,409 Information Technology 407,166 Fiscal Services 55,126 General Government 280,498 Non-departmental 1,299,794 Capital Assets held by Internal Service Fund 2,257,660 Governmental Activities Depreciation Expense $ 16,117,883 Electric $ 6,342,737 Water 4,863,694 Wastewater 4,871,966 Sanitation 969,679 Northgate Parking 208,833 Business-Type Depreciation Expense $ 17,376,909 50 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2016 City of College Station, Texas D. Interfund Transactions Transfers between funds during the year were as follows: Transfers In Transfers Out Governmental Activities, net Business-type Activities, net Governmental Activities: General Fund $ 16,507,346 $ 2,376,443) $ 14,130,903 $ - Debt Service Fund 915,318 - 915,318 - Streets Projects - (628,193) (628,193) - Other Nonmajor Governmental Funds 3,676,038 (4,651,860) (975,822) - Internal Service Funds 270,200 (73,385) 196,815 - Business-type Activities: Enterprise Funds: Electric 736,172 (8,210,044) - (7,473,872) Water - (2,729,980) - (2,729,980) Wastewater - (2,456,468) - (2,456,468) Other Nonmajor Enterprise Funds 417,774 (1,397,275) - (979,501) $ 22,522,848 $ (22,523,648) $ 13,639,021 $ (13,639,821) 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. Interfund Receivables and Payables The interfund receivables and payables at September 30, 2016, result from the General and Wastewater Funds making advances of surplus cash funds to the Community Development Special Revenue Fund for the purpose of repaying HUD for CDBG funds until real estate was sold. Balances are reflected in the accompanying financial statements are as follows: Fund Receivable (Payable) Total General Fund $ 893,638 - $ 893,638 Wastewater Fund $1,497,306 - $1,497,306 Community Development Fund - ($2,390,944) ($2,390,944) Total $2,390,944 ($2,390,944) $ 0 E. Operating Leases During fiscal-year 2016, the City of College Station entered into a three-year operating lease for office space with an optional one-year renewal. Rent cost totaled approximately $28,350 for fiscal year 2016. The following is a schedule, by year, of the future minimum rental payments under the office space lease: Year Ended September 30, 2017 $ 114,232 2018 $ 117,650 2019 $ 90,186 51 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2016 City of College Station, Texas F. Deferred Outflows/Inflows of Resources – Other than Pensions In addition to assets, the statement of financial position and/or balance sheet 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, 2016, the City reported $1,772,035 and $1,749,900, for Governmental and Business-type Activities, respectively, 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 and/or balance sheet 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 one item that 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 and statement of net position. The governmental funds report unavailable revenues from the following sources: Unavailable Unearned Total Property Tax $ 348,063 $ - $ 348,063 Loans Receivable 241,001 - 241,001 Other – Cemetery Plot Loans Receivable 13,633 - 13,633 Other – Street Funds 345,997 - 345,997 Other – General Fund 1,461,162 - 1,461,162 $ 2,409,856 $ - $ 2,409,856 These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. 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 $1,457,296. G. Prior Period Adjustment There are no prior period adjustments for September 30, 2016. 52 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2016 City of College Station, Texas H. Long-Term Debt The City elected to implement GASB Statement 65 in fiscal year 2013. A summary of long-term debt transactions, including current portion, for the year ended September 30, 2016 follows: Due to implementation of GASB No. 63 and 65, deferred loss from refunding transactions have been reclassified from a liability to a deferred outflow of resources and is no longer presented in the long-term debt table presented above. Internal service funds predominantly serve the governmental funds. All internal service funds, except for the utility customer service fund, are included as part of the above totals for governmental activities. Long-term debt at September 30, 2016 includes the following individual issues (not including unamortized premiums or discounts): Amounts Beginning Incurred/ Matured/ Ending Due Within Balance Issued Retired Balance One Year Governmental activities: General obligation bonds 81,855,000$ 22,180,000$ 15,655,000$ 88,380,000$ 7,605,000$ Certificates of obligation 19,890,000 18,470,000 8,280,000 30,080,000 3,075,000 Premium/discount 4,924,916 5,399,573 696,099 9,628,390 805,823 Governmental activity Long term debt 106,669,916 46,049,573 24,631,099 128,088,390 11,485,823 Business type activities: General obligation bonds 44,670,000 18,710,000 6,265,000 57,115,000 7,030,000 Certificates of obligation 87,305,000 7,250,000 12,370,000 82,185,000 4,250,000 Utility revenue bonds 13,395,000 - 13,395,000 - - Premium/discount 8,606,430 3,811,643 867,876 11,550,197 1,087,593 Business type activity Long term debt 153,976,430$ 29,771,643$ 32,897,876$ 150,850,197$ 12,367,593$ Interest Issue Maturity Original Net Rate (%)Date Date Issue Retirement Outstanding General Obligation Bonds: 2006 Issue - Refunding 4.00-5.00 12/1/06 2/15/18 10,255,000$ 10,255,000$ -$ 2007 Issue 4.25-6.25 9/1/07 2/15/27 3,930,000 3,930,000 - 2008 Issue 4.0 - 5.0 9/1/08 2/15/28 9,455,000 7,840,000 1,615,000 2009 Issue 3.5 - 4.0 7/15/09 2/15/21 3,335,000 810,000 2,525,000 2009 Issue - Refunding 2.00-4.00 11/15/09 2/15/20 4,265,000 3,070,000 1,195,000 2010 Issue 2.00-3.50 8/15/10 2/15/30 19,635,000 4,500,000 15,135,000 2010 Issue - Refunding 3.0-5.0% 11/15/10 2/15/22 11,245,000 5,525,000 5,720,000 2011 Issue .25-1.6% 9/15/11 2/15/18 1,960,000 1,520,000 440,000 2012 Issue & Refunding 2.0-5.0% 6/1/12 2/15/32 11,515,000 3,215,000 8,300,000 2013 Issue & Refunding 2.0-5.0% 8/15/13 2/15/33 14,505,000 2,660,000 11,845,000 2014 Issue & Refunding 2.0-5.0% 9/1/14 2/15/34 21,230,000 1,805,000 19,425,000 2016 Issue & Refunding 2.0-5.0% 7/1/16 2/15/36 22,180,000 - 22,180,000 133,510,000 45,130,000 88,380,000 General Obligation Bonds - Business-type Activities: 2009 Issue - Refunding 2.00-4.00 11/15/09 2/15/20 3,830,000 2,755,000 1,075,000 2010 Issue - Refunding 3.0-5.0% 11/15/10 2/15/22 25,905,000 10,940,000 14,965,000 2012 Issue & Refunding 2.0-5.0% 6/1/12 2/15/24 9,570,000 3,460,000 6,110,000 2013 Issue & Refunding 2.0-5.0% 8/15/13 2/15/25 6,255,000 1,385,000 4,870,000 2014 Issue & Refunding 2.0-5.0% 9/1/14 2/15/26 14,635,000 3,250,000 11,385,000 2016 Issue & Refunding 2.0-5.0% 7/1/16 2/15/28 18,710,000 - 18,710,000 78,905,000 21,790,000 57,115,000 Total General Obligation Bonds 212,415,000$ 66,920,000$ 145,495,000$ 53 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2016 City of College Station, Texas The annual requirements to amortize debt outstanding as of September 30, 2016 are as follows: Certificates of Obligation - Governmental Activities: 2007 Issue 4.25-6.25 9/1/07 2/15/27 3,960,000$ 3,960,000$ -$ 2008 Issue 3.25 - 5.0 9/1/08 2/15/20 22,855,000 21,080,000 1,775,000 2009 Issue 3.00-5.00 7/15/09 2/15/29 5,880,000 5,360,000 520,000 2010 Issue 2.00-3.50 8/15/10 2/15/30 1,050,000 965,000 85,000 2014 Issue 2.0-5.0% 9/1/14 2/15/34 10,665,000 1,435,000 9,230,000 2016 Issue 2.0-5.0% 7/1/16 2/15/36 18,470,000 - 18,470,000 62,880,000 32,800,000 30,080,000 Certificates of Obligation - Business-type Activities: 2008 Issue 3.25 - 5.0 9/1/08 2/15/20 15,925,000 12,880,000 3,045,000 2009 Issue 3.00-5.00 7/15/09 2/15/29 30,580,000 12,355,000 18,225,000 2010 Issue 2.00-3.50 8/15/10 2/15/30 2,850,000 610,000 2,240,000 2011 Issue 2.00-3.60 9/15/11 2/15/31 7,920,000 1,400,000 6,520,000 2012 Issue 2.0-5.0% 6/1/12 2/15/32 16,415,000 2,380,000 14,035,000 2013 Issue 2.0-5.0% 8/15/13 2/15/33 10,230,000 1,110,000 9,120,000 2014 Issue 2.0-5.0% 9/1/14 2/15/34 23,340,000 1,590,000 21,750,000 2016 Issue 2.0-5.0% 7/1/16 2/15/36 7,250,000 - 7,250,000 114,510,000 32,325,000 82,185,000 Total Certificates of Obligation 177,390,000 65,125,000 112,265,000 Utility Revenue Bonds: 2007 Issue 4.00-5.75 9/1/07 2/1/27 18,665,000 18,665,000 - 18,665,000$ 18,665,000$ - Total Outstanding Bonds 257,760,000$ General Obligation Certificates of Obligation Year Ended September 30,Principal Interest Principal Interest 2017 7,605,000$ 3,396,364$ 3,075,000$ 1,242,918$ 2018 6,940,000 3,123,220 1,955,000 1,079,451 2019 6,270,000 2,837,271 2,065,000 983,857 2020 6,570,000 2,556,199 2,100,000 890,364 2021 6,055,000 2,291,258 1,695,000 809,914 2022-2026 29,870,000 7,518,830 8,220,000 2,773,535 2027-2031 18,480,000 2,482,139 5,425,000 1,365,937 2032-2036 6,590,000 394,681 5,545,000 425,625 88,380,000$ 24,599,962$ 30,080,000$ 9,571,601$ General Obligation Certificates of Obligation Utility Revenue Year Ended September 30,Principal Interest Principal Interest Principal Interest 2017 7,030,000$ 2,371,031$ 4,250,000$ 3,300,524$ -$ -$ 2018 6,325,000 2,086,093 4,480,000 3,115,734 - - 2019 5,860,000 1,805,006 4,700,000 2,937,909 - - 2020 6,170,000 1,535,656 4,910,000 2,754,603 - - 2021 6,915,000 1,250,506 4,265,000 2,585,877 - - 2022-2026 21,330,000 2,809,781 24,480,000 10,097,636 - - 2027-2031 3,485,000 59,022 25,515,000 4,677,233 - - 2032-2036 - - 9,585,000 631,431 - - 57,115,000$ 11,917,096$ 82,185,000$ 30,100,947$ -$ -$ Business-Type Activities Governmental Activities 54 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2016 City of College Station, Texas The City intends to retire all of its general long-term liabilities, plus interest, from the collection of 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 of 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, 2016. In 2009, the City issued $31,315,000 in Certificates of Obligation. $2,600,000 of the proceeds were 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. BVSWMA, Inc. has pledged to repay the $5,145,000 plus interest to the City of College Station. As of September 30, 2016, BVSWMA, Inc. owed the City $3,610,000. 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, 2016, 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. 55 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2016 City of College Station, Texas 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, 2016, the City’s escrow balance for bonds defeased on December 1, 2011 was $1,844,388 and for bonds defeased on July 5, 2016 was $18,430,396. The defeased bonds are not callable until February 15, 2019 and February 15, 2018, respectively. Part of the 2016 refunding bonds included a refunding of the 2006 Refunding Bonds. The 2006 Refunding Bonds were the result of refunding the 1996 General Obligation Bonds, the 1998 General Obligation Bonds, the 2000 Certificates of Obligation and the 2000 General Obligation Bonds. The refunding was undertaken to reduce total general obligation and utility revenue debt service payments over the life of the debt. Cash flow savings were $150,622 from the original 1996 General Obligation debt and $8,510 from the 2006 refunding. This bond was called on July 12, 2016 and represented a discounted present value net savings of $145,717 from the original debt and $8,718 from the 2006 refunding. I. Components of Fund Balance Fund balances for governmental funds at September 30, 2016 are as follows: General Debt Service Street Projects Other Total Fund Balances: Nonspendable: Inventories 51,617$ -$ -$ 5,989,904$ 6,041,521$ Prepaids 19,701 - - - 19,701 Restricted for: Community and Neighborhood Parks - - - 6,442,214 6,442,214 Community Development - - - (415,697) (415,697) CDBG - - - 2,390,944 2,390,944 Court Security Fee - - - 19,382 19,382 Court Technology Fee - - - 455,336 455,336 Debt Service - 4,793,558 - - 4,793,558 General Government Capital Projects - - 5,729,157 6,804,372 12,533,529 Hotel Occupancy Tax - - - 10,380,764 10,380,764 Juvenile Case Manager - - - 256,545 256,545 Parks and Recreation Capital Projects - - - 8,054,698 8,054,698 Police Seizure - - - 103,696 103,696 Wolf Pen Creek TIF - - - 1,266,118 1,266,118 Truancy Prevention - - - 38,483 38,483 West Medical District TIRZ No. 18 - - - 450,600 450,600 East Medical District TIRZ No. 19 - - - 2,879 2,879 PEG Access Channel - - - 501,590 501,590 Meyer Estate Gift - - - 568,190 568,190 Committed to: Texas Avenue Cemetery Endowment - - - 1,883,994 1,883,994 Memorial Cemetery - - - 1,481,110 1,481,110 Memorial Cemetery Endowment - - - 1,024,289 1,024,289 Drainage Infrastructure Improvements - - - 2,309,932 2,309,932 Parks Infrastructure Improvements - - - 7,350,939 7,350,939 Assigned: Other Purposes 2,171,129 - - - 2,171,129 Capital Improvement Projects 23,973,405 4,888,478 28,861,883 Unassigned:16,890,755 - - - 16,890,755 19,133,202$ 4,793,558$ 29,702,562$ 62,248,760$ 115,878,082$ 56 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2016 City of College Station, Texas V. Other Information A. Property Taxes Property tax is levied each October 1 on the assessed (appraised) value listed as of the prior January 1 for all real and business personal property located in the City. Taxable assessed value represents the appraisal value less applicable exemptions authorized by the City Council. Taxes are due October 1 and are delinquent after the following January 31. Tax liens are automatic and become enforceable as of January 1 of each year. Taxes become delinquent February 1 and are subject to interest and penalty charges. The tax rate to finance general governmental services including debt service was 47.2500 cents per $100 of assessed valuation for the year ended September 30, 2016. Under current state statutes, the City's ability to increase the levy for property taxation is subject to a maximum rate of $2.50 per $100 valuation. The Brazos County Appraisal District ("Appraisal District") is responsible for the recording and appraisal of property for all taxing units in Brazos County. The Appraisal District is required to assess property at 100 percent of its appraised value. Real property must be reappraised at least every three years. The City may, at its own expense, require annual reviews by the Appraisal District through various appeals and, if necessary, legal action. Under this system, if the rate, excluding tax rates for bonds and other contractual obligations adjusted for new improvements, exceeds the rate for the previous year by more than eight (8) percent, qualified voters of the City may petition for an election to determine whether to limit the tax rate to no more than eight (8) percent above the tax rate of the previous year. Brazos County bills and collects the property taxes for the City. B. Risk Management A government entity such as the City of College Station 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 $180,000 per individual per year, with an aggregate attachment point for the last 12 months of $7,891,541. The liability for outstanding losses includes $1,717,575 for claims incurred but not reported as of September 30, 2016. In fiscal year 2016, 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 $500,000 per occurrence, depending on type of loss and location of property. Risk Management paid all direct and indirect losses out of the Property Casualty fund and no losses exceeded the City’s deductible. The City self-insures all liability coverage lines. Licensed adjusters in the City’s Risk Management Division process Liability and Workers’ Compensation claims utilizing the services of Third Party Administrator Abercrombie, Simmons & Gillette (AS&G). 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 coverage through Allied World Insurance Company, A.M. Best rated A XV, and Colony Insurance Company, A.M. Best rated A XIII. Colony is also the City’s excess Workers’ Compensation carrier. The self-insured retention ("SIR") for 2016 was $500,000 per claim for workers’ compensation and general, auto and employer liability; and $650,000 for fire and police liability.” Excess liability and excess workers’ compensation policy premiums were funded 57 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2016 City of College Station, Texas by calculated contributions from the City’s operating funds. These policies protect the City from losses above the City’s SIR. The City experienced no losses above the SIR in 2016. Liabilities in the property and casualty fund and the Workers’ Compensation fund are reported to the carrier when a covered loss can be reasonably estimated to approach one-half of the City’s Self-Insured Retention. 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 $449,197 in the property and casualty fund and a potential liability of $227,934 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. 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 2016 and 2015 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.; 2016 2015 Unpaid Claims, October 1 1,973,042$ 1,650,636$ Incurred Claims (including IBNR's)9,528,083 8,228,627 Claims Paid (9,106,419)(7,906,221) Unpaid Claims, September 30 2,394,706$ 1,973,042$ 58 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2016 City of College Station, Texas • 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 (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. 59 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2016 City of College Station, Texas The following is a summary of information from the audited financial statements of BVSWMA, Inc. as of September 30, 2016: The City’s share of BVSWMA, Inc.’s net assets for fiscal year 2016 was $14,686,316. A copy of BVSWMA, Inc.’s financial statements may be obtained from the City’s Fiscal Services Department. D. Pension Plan Plan Description The City accounts for pension cost under GASB Statement No. 68, Accounting and Financial Reporting for Pensions. The City of College Station participates as one of 860 plans in the multi- employer, nontraditional, joint contributory, hybrid defined benefit pension plan administered by the Texas Municipal Retirement System (TMRS). TMRS is an agency created by the State of Texas and administered in accordance with the TMRS Act, Subtitle G, Title 8, Texas Government Code (the TMRS Act) as an agent multiple-employer retirement system for municipal employees in the State of Texas. The TMRS Act places the general administration and management of the System with a six-member Board of Trustees. Although the Governor, with the advice and consent of the Senate, appoints the Board, TMRS is not fiscally dependent on the State of Texas. TMRS’s defined benefit pension plan is a tax-qualified plan under Section 401 (a) of the Internal Revenue Code. TMRS issues a publicly available comprehensive annual financial report (CAFR) that can be obtained at www.tmrs.com. All eligible employees of the city are required to participate in TMRS. TMRS provides retirement, disability, and death benefits. Benefit provisions are adopted by the governing body of the City, within the options available in the state statutes governing TMRS. At retirement, the benefit is calculated as if the sum of the employee’s contributions, with interest, and the city-financed monetary credits with interest were used to purchase an annuity. Members may 2016 2015 Current assets and other assets 12,517,011$ 14,233,143$ Capital assets 29,903,491 26,637,834 Total assets 42,420,502 40,870,977 Current liabilities 1,137,484 1,613,893 Noncurrent liabilities 11,910,386 12,079,468 Total liabilities 13,047,870 13,693,361 Net investment in capital assets 22,373,491 18,627,834 Unrestricted 6,999,141 8,549,782 Total net position 29,372,632$ 27,177,616$ Revenues Landfill charges 9,203,897$ 7,932,876$ Compost facility revenue 296,236 298,033 Miscellaneous revenue 24,623 35,307 Total revenues 9,524,756 8,266,216 Operating expenses (7,059,034) (6,686,814) Interest expense (322,491) (338,441) Other non operating revenues (expenses)51,785 117,682 Change in net position 2,195,016 1,358,643 Net position, beginning of year 27,177,616 25,818,973 Net position, end of year 29,372,632$ 27,177,616$ 60 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2016 City of College Station, Texas choose to receive their retirement benefit in one of seven actuarially equivalent payments options. Members may also choose to receive a portion of their benefit as a Partial Lump Sum Distribution in an amount equal to 12, 24, or 36 monthly payments, which cannot exceed 75% of the member’s deposits and interest. 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: Employee deposit rate 7.00% Matching ratio (City to Employee) 2 to 1 Years required for vesting 5 Service retirement eligibility 20 years at any age; 5 years at age 60 and above Updated service credit 75% repeating transfers Annitiy increase (to retirees) 50% of CPI repeating Employees covered by benefit terms – At the December 31, 2015 valuation and measurement date, the following employees were covered by the benefit terms: Contributions The contribution rates for employees in TMRS are either 5%, 6%, or 7% of employee gross earnings, and the city matching percentages are either 100%, 150%, or 200%, both as adopted by the governing body of the city. Under the state law governing TMRS, the contribution rate for each city is determined annually by the actuary, using the Entry Age Normal (EAN) actuarial cost method. The actuarially determined rate is the estimated amount necessary to finance the cost of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees for the City of College Station were required to contribute 7% of their annual gross earnings during the fiscal year. The contribution rates for the City of College Station were 14% and 13% in calendar years 2015 and 2016, respectively. The City’s contribution to TMRS for fiscal year 2016, were $6,447,328 and were equal to the required contributions. Net Pension Liability The city’s Net Pension Liability (NPL) was measured as of December 31, 2015, and the Total Pension Liability (TPL) used to calculate the Net Pension Liability was determined by an actuarial valuation as of that date. Actuarial assumptions The Total Pension Liability in the December 31, 2015 actuarial valuation was determined using the following actuarial assumptions: Inactive employees or beneficiaries currently receiving benefits 391 Inactive employees entitled to but not yet receiving benefits 479 Active employees 858 1,728 Inflation Overall Payroll growth Investment rate of return 2.5% per year 3.00% 6.75% percent, net of pension plan investment expense, including inflation 61 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2016 City of College Station, Texas Salary increases were based on service-related table. Mortality rates for active members, retirees, and beneficiaries were based on the gender-distinct RP2000 Combined Healthy Mortality Table, with male rates multiplied by 109% and female rates multiplied by 103%. The rates are projected on a fully generational basis by scale BB to account for future mortality improvements. For disabled annuitants, the gender-distinct RP2000 Disabled Retiree Mortality Table is used, with slight adjustments. Actuarial assumptions used in the December 31, 2015, valuation were based on the results of actuarial experience studies. This experience study was for the period December 31, 2010 through December 31, 2014. Healthy post-retirement mortality rates and annuity purchase rates were updated based on a Mortality Experience Investigation Study covering 2009 through 2011, and dated December 31, 2013. These assumptions were first used in the December 31, 2013 valuation, along with a change to the Entry Age Normal (EAN) actuarial cost method. Assumptions are reviewed annually. No additional changes were made for the 2014 valuation. After the Asset Allocation Study analysis and experience investigation study, the Board amended the long-term expected rate of return on pension plan investments from 7% to 6.75%. Plan assets are managed on a total return basis with an emphasis on both capital appreciation as well as the production of income, in order to satisfy the short-term and long-term funding needs of TMRS. The long-term expected rate of return on pension plan investments is 6.75%. The pension plan’s policy with regard to the allocation of invested assets is established and may be amended by the TMRS Board of Trustees. Plan assets are managed on a total return basis with an emphasis on both capital appreciation as well as the production of income, in order to satisfy the short-term and long-term funding needs of TMRS. The long-term expected rate of return on pension plan investments was determined using a building- block method in which best estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: Asset Class Target Allocation Long-Term Expected Real Rate of Return (Arithmetic) Domestic Equity 17.5% 4.55% International Equity 17.5% 6.10% Core Fixed Income 10.0% 1.00% Non-Core Fixed 20.0% 3.65% Real Return 10.0% 4.03% Real Estate 10.0% 5.00% Absolute Return 10.0% 4.00% Private Equity 5.0% 8.00% Total 100.0% Discount Rate The discount rate used to measure the Total Pension Liability was 6.75%. The projection of cash flows used to determine the discount rate assumed that employee contributions will remain at the current 6.75% and employer contributions will be made at the rates specified in statute. Based on that assumption, the pension plan’s Fiduciary Net Position was projected to be available to make all 62 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2016 City of College Station, Texas projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the Total Pension Liability. Increase (Decrease) Total Pension Liability (a) Plan Fiduciary Net Position (b) Net Pension Liability (a) – (b) Balances at 12/31/2014 $ 233,670,897 $ 211,564,053 $ 22,106,844 Changes for the year: Service cost 7,447,204 - 7,447,204 Interest 16,281,185 - 16,281,185 Differences between expected and actual 969,442 - 969,442 Changes of assumptions 3,565,506 - 3,565,506 Contributions—employer - 6,435,064 (6,435,064) Contributions—employee - 3,420,245 (3,420,245) Net investment income - 312,181 (312,181) Benefit payments, including refunds of employee contributions (9,612,289) (9,612,289) - Administrative expense - (190,146) 190,146 Other changes - (9,392) 9,392 Net changes $ 18,651,048 $ 355,663 $ 18,295,385 Balances at 12/31/2015 $ 252,321,945 $ 211,919,716 $ 40,402,229 Sensitivity of the net pension liability to changes in the discount rate The following presents the net pension liability of the City, calculated using the discount rate of 6.75%, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (5.75%) or 1-percentage-point higher (7.75%) than the current rate: Pension Plan Fiduciary Net Position Detailed information about the pension plan’s Fiduciary Net Position is available in a separately- issued TMRS financial report. That report may be obtained on the Internet at www.tmrs.com. Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension For the year ended September 30, 2016, the City recognized pension expense of $9,789,218. At September 30, 2016, the City reported deferred outflows and inflows of resources related to pensions from the following sources: 1% Decrease 5.75% Current Discount Rate 6.75% 1% Increase 7.75% City's net pension liability $78,589,444 $40,402,229 $9,325,776 63 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2016 City of College Station, Texas Deferred Outflows Deferred Inflows of Resources of Resources Differences between actuarial assumptions and actual experience $ 776,326 $ 714,729 Changes of assumptions 2,855,246 - Differences between projected earnings and actual earnings 13,135,053 - Contributions subsequent to the measurement date 4,590,800 - Total $ 21,357,425 $ 714,729 Deferred outflows or resources related to pensions resulting from contributions subsequent to the measurement date of $4,590,800 will be recognized as a reduction of the net pension liability for the measurement year ending December 31, 2016 (i.e. recognized in the city’s financial statements September 30, 2017). Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Measurement Year End Dec 31 Net deferred outflows (inflows) of resources 2016 $ 4,091,020 2017 4,091,020 2018 4,091,019 2019 3,760,769 2020 18,068 Thereafter - Total $ 16,051,896 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 coverage until age 65 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 2016, sixty-one former employees were covered under this arrangement, with claims less retiree contributions totaling $705,451. 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 64 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2016 City of College Station, Texas 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. Accounting Year Ending Annual OPEB Cost Actual Contribution Made Percentage of Annual OPEB Cost Contributed Net OPEB Obligation 9/30/2014 1,354,795 406,326 29.99% 8,899,847 9/30/2015 1,688,542 434,136 25.71% 10,154,253 9/30/2016 1,770,936 705,451 39.83% 11,219,738 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 2014 2015 2016 Annual Required Contribution (ARC) $ 1,449,844 $ 1,810,895 $ 1,910,536 Interest on Net Pension Obligation 397,569 400,494 456,941 Adjustment to the ARC (492,618) (522,847) (596,541) Annual OPEB Cost 1,354,795 1,688,542 1,770,936 Contributions Made (406,326) (434,136) (705,451) Increase (Decrease) in net pension obligation 948,469 1,254,406 1,065,485 Net OPEB Obligation/(Asset), beginning of year 7,951,378 8,899,847 10,154,253 Net OPEB Obligation/(Asset), end of year $ 8,899,847 $ 10,154,253 $ 11,219,738 65 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2016 City of College Station, Texas 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, 2014 actuarial valuation. Significant methods and assumptions follow: Actuarial Valuation Date 10/1/2014 Asset Valuation Method Market Actuarial Cost Method Projected Unit Credit Actuarial Assumptions: Annual Investment Return Assumption* 4.5% *Includes inflation at: 3.5% Projected Salary Increases N/A Annual Healthcare Trend Rates 8.0% in FYE 2016, declining to 5.25% in FYE 2021 Amortization Method Level Dollar Amortization Period 30 Year open period 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 three valuations, that for the fiscal year beginning October 1, 2010, October 1, 2012 and one for the fiscal year beginning October 1, 2014. 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. The City has had three separate valuations, one of which used the October 1, 2010 valuation date, October 1, 2012 and October 1, 2014 valuation date. The October 1, 2010 valuation date was used to develop results for the fiscal year ending September 30, 2012, the October 1, 2012 valuation date was used to develop results for the fiscal years ending 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 - 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% 10/1/2014 - 15,013,856 15,013,856 0.0% 44,000,000 34.12% 66 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2016 City of College Station, Texas September 30, 2013 and 2014. 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. The October 1, 2014 valuation date was used to develop results for the fiscal years ending September 30, 2015 and 2016, as part of the plans biennial valuation. 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 $26,688,688 in the Capital Projects Funds, $1,343,123 in the Water Fund, $3,538,846 in the Wastewater Fund and $1,941,200 in the Electric Fund. These commitments are for construction of various projects and will be funded primarily from long-term debt. Contingencies The City participates in a number of federal and state assisted grant programs. These programs are subject to program compliance audits by the grantors or their representatives. Any liability for reimbursement which may arise as the result of these audits is not believed to be material. Litigation The City is a party to legal proceedings, many of which occur in the normal course of operations. It is not possible at the present time to estimate the ultimate outcome or liability, if any, of the city with respect to the various proceedings. Management believes any unfavorable outcomes would not be material. Financial Hedging According to the Public Funds Investment Act, a municipality that owns a municipal electric utility that is engaged in the distribution and sale of electric energy or natural gas to the public may enter into a hedging contract and related security and insurance agreements in relation to fuel oil, natural gas, coal, nuclear fuel, and electric energy to protect against loss due to price fluctuations. In fiscal year 2014, the City signed a contract with the City of Garland under which the City of Garland will serve as the qualified scheduling entity that will formulate and discuss the hedging strategies and options available to the City to manage its power supply portfolio and price. Congestion Revenue Rights (CRRs) function as a mitigation against the cost of resolving congestion in the Electric Reliability Council of Texas (ERCOT) market. The City participates in the CRR auctions to procure CRRS for use in normal operations of delivery of electricity to its customers. These purchases are recorded as a prepaid purchased power expense in the Electric Fund. The City has not yet engaged in any hedging activity. 67 Notes to the Financial Statements For the Fiscal Year Ended September 30, 2016 City of College Station, Texas H. Bonds Available for Sale Authorized general obligation bonds available for future issue are as follows: Year Unissued Authorized Amount Public Buildings 1984 $ 700,000 1 Street Improvements 1984 500,000 1 Municipal Complex Improvements 2003 3,655,000 Library Expansion 2008 3,700,000 Parks and Recreation 2008 645,000 Street Improvements 2008 13,690,000 Total $ 22,890,000 1. Contains projects which may have been completed or abandoned; therefore, these bonds are not likely to ever be issued. I. Encumbrances Encumbrance accounting is employed in governmental funds. Purchase orders, contracts, and other commitments for the expenditure of moneys are recorded in order to reserve a portion of the applicable appropriation. Encumbrances lapse at the end of the fiscal year and may be re-encumbered the following year. The following encumbrance amounts were re-encumbered by fund on September 30, 2016 for fiscal year 2017: Fund Amount General Fund $1,037,220 Debt Service Fund 0 Streets Projects Fund 0 Internal Service Fund 1,555,579 Special Revenue Fund 2,390,944 Other Governmental Funds 181,916 Total Governmental Encumbrances $5,165,659 J. Subsequent Events Subsequent events have been evaluated through the date of the auditors' report, March 13, 2017, which is the date the financial statements were available to be issued. On February 2, 2017, the City Council approved the formation of a public non-profit corporation to assist with economic development efforts and oversee the implementation of the Spring Creek Corporate Campus. The Spring Creek Local Government Corporation will promote, develop, and encourage employment and economic development anchored by the City of College Station’s next business park. The corporation will be governed by a Board of Directions appointed by the City Council, with the initial board consisting of five Directors. The Mayor will serve as President and the remaining directors to be City officers or residents who have special expertise that would be beneficial to the corporation. The corporation will have the power to acquire, own and dispose of real estate subject to the approval of the City Council. Future financial statements of the City are expected to reflect this entity as a component unit. 68 2014 2015 6,408,154$ 7,447,204$ 15,448,489 16,281,185 Changes of benefit terms - - and actual experience (1,163,171) 969,442 - 3,565,506 (9,022,396) (9,612,289) 11,671,076 18,651,048 221,999,821 233,670,897 Total pension liability - ending (a)233,670,897 252,321,945 Plan fiduciary net position: Contributions - employer 5,916,175 6,435,064 Contributions - employee 3,060,843 3,420,245 Net investment income 11,457,666 312,181 Benefit payments, including refunds of employee contributions (9,022,396) (9,612,289) Administrative expense (119,620) (190,146) Other (9,835) (9,391) Net change in plan fiduciary net position 11,282,833 355,664 Plan fiduciary net position - beginning 200,281,220 211,564,053 Plan fiduciary net position - ending (b)211,564,053 211,919,716 Net pension liability - ending (a) - (b)22,106,844.00$ 40,402,229.00$ Plan fiduciary net position as a percentage of total of total pension liability 90.54%83.99% Covered employee payroll 43,726,328$ 48,579,284$ Net pension liability as a percentage of covered employee payroll 50.56%83.17% CITY OF COLLEGE STATION, TEXAS Net change in total pension liability Total pension liability - beginning Total pension liability: Service cost Interest Differences between expected Change in assumptions Benefit payments, including refunds of employee contributions For the Fiscal Year Ended September 30, 2016 Schedule of Changes in Net Pension Liability and Related Ratios Texas Municipal Retirement System (Unaudited) Required Supplementary Information 69 (5) Actuarially (2)determined (6) Contribution contributions as Contributions as in relation to (3)a percentage a percentage (1)the Contribution (4)of covered of covered Actuarially actuarially excess Covered employee employee Fiscal determined determined (deficiency)employee payroll payroll Year contribution Contribution (2) - (1)payroll (1)/(4)(2)/(4) 2007 4,316,276$ 4,316,276$ -$ 36,703,161$ 11.76%11.76% 2008 4,750,851 4,750,851 - 40,337,456 11.78%11.78% 2009 6,645,900 5,313,678 (1,332,222) 41,515,345 16.01%12.80% 2010 7,582,944 5,810,310 (1,772,634) 40,662,340 18.65%14.29% 2011 7,998,505 6,413,446 (1,585,059) 41,553,358 19.25%15.43% 2012 7,323,878 6,586,598 (737,280) 41,386,265 17.70%15.91% 2013 7,441,907 6,062,866 (1,379,041) 42,175,173 17.65%14.38% 2014 6,251,606 5,857,976 (393,630) 40,787,444 15.33%14.36% 2015 5,881,274 6,068,368 187,094 43,726,328 13.45%13.88% 2016 6,447,330 6,447,328 (2) 48,579,284 13.27%13.27% Notes to Schedule Valuation date:Actuarially determined contribution rates are calculated as of December 31 and become effective in Jauary 13 months later. Method and assumptions used to determine contribution rates: Actuarial cost method Entry age Amortization method Level percentage of payroll, closed Remaining amortization period 30 years Asset valuation method 10-years smoothed market; 15% soft corridor Inflation 2.50% Salary increases 3.50% to 10.50% inlcuding inflation Investment rate of return 6.75% Retirement age Experience-based table of rates that are specific to the City's plan of benefits. Last updated for the 2015 valuation pursuant to an experience study of the period 2010 - 2014. Mortality RP2000 Combined Mortality Table with Blue Collar Adjustment with male rates multiplied by 109% and females rates multiplied by 103% and projected on a fully generational basis with scale BB. Other information:There were no benefit changes during the year. Schedule of Contributions For the Fiscal Year Ended September 30, 2016 CITY OF COLLEGE STATION, TEXAS Required Supplementary Information (Unaudited) Texas Municipal Retirement System 70 CITY OF COLLEGE STATION, TEXAS Required Supplementary Information City of College Station Employees Other Post-Employment Benefits Plan Schedule of Funding Progress Last Three Valuations (Unaudited) The City has had three separate valuations, one of which used the October 1, 2010 valuation date, October 1, 2012 and October 1, 2014 valuation date. The October 1, 2010 valuation date was used to develop results for the fiscal year ending September 30, 2012, the October 1, 2012 valuation date was used to develop results for the fiscal years ending September 30, 2013 and 2014. 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. The October 1, 2014 valuation date was used to develop results for the fiscal years ending September 30, 2015 and 2016, as part of the plans biennial valuation. 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. 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 - 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% 10/1/2014 - 15,013,856 15,013,856 0.0% 44,000,000 34.12% 71 Variance with Actual GAAP Adjustments Actual Budget Final Budget Original Budget Final Budget Basis Budget Basis Basis Over (Under) Revenues Ad valorem taxes $ 18,267,815 $ 18,267,815 $ 18,442,879 $ - $ 18,442,879 $ 175,064 Sales taxes 27,592,000 27,592,000 27,163,480 - 27,163,480 (428,520) Other taxes 3,084,425 3,084,425 3,131,535 - 3,131,535 47,110 Licenses and permits 1,158,974 1,158,819 2,132,802 - 2,132,802 973,983 Intergovernmental 553,203 560,203 1,373,950 - 1,373,950 813,747 Charges for services 4,208,934 3,909,073 3,809,206 - 3,809,206 (99,867) Fines, forfeits, and penalties 2,745,510 2,745,510 3,249,901 - 3,249,901 504,391 Investment income 62,220 62,220 143,711 (2,767) 140,944 78,724 Rents and royalties - - 187,328 - 187,328 187,328 Contributions 10,947 10,947 8,880 - 8,880 (2,067) Other 237,999 531,015 434,537 - 434,537 (96,478) Total revenues 57,922,027 57,922,027 60,078,209 (2,767) 60,075,442 2,153,415 Expenditures Police 19,781,879 20,213,243 20,170,450 - 20,170,450 (42,793) Fire 16,743,432 16,899,025 16,916,819 - 16,916,819 17,794 Public works 11,223,624 11,393,022 11,162,508 - 11,162,508 (230,514) Parks and recreation 9,781,870 11,619,123 9,279,126 - 9,279,126 (2,339,997) Library 1,101,851 1,101,851 1,098,326 - 1,098,326 (3,525) Planning and development services 3,487,657 3,660,014 3,243,768 - 3,243,768 (416,246) Information technology 4,918,755 4,982,476 4,491,009 - 4,491,009 (491,467) Fiscal services 3,722,038 3,803,821 3,727,249 - 3,727,249 (76,572) General government 4,248,471 5,511,625 5,220,218 65,596 5,285,814 (225,811) Contributions 1,211,753 1,211,753 1,220,251 - 1,220,251 8,498 Other 2,333,457 2,968,142 863 - 863 (2,967,279) Capital outlay 671,232 667,574 - 667,574 (3,658) Total expenditures 78,554,787 84,035,327 77,198,161 65,596 77,263,757 (6,771,570) Excess (deficit) of revenues over (under) expenditures (20,632,760) (26,113,300) (17,119,952) (68,363) (17,188,315) 8,924,985 Other financing sources (uses) Transfers in 15,064,737 16,619,212 16,132,346 - 16,132,346 (486,866) Transfers out (3,395,468) (2,745,199) (2,376,443) - (2,376,443) 368,756 Contingency (250,000) (47,874) - - - 47,874 Total other financing sources (uses) 11,419,269 13,826,139 13,755,903 - 13,755,903 (70,236) Net change in fund balances (9,213,491) (12,287,161) (3,364,049) (68,363) (3,432,412) 8,854,749 Fund balances - beginning 21,698,627 21,698,627 21,698,627 - 21,698,627 - Fund balances - ending $ 12,485,136 $ 9,411,466 $ 18,334,578 $ (68,363) $ 18,266,215 $ 8,854,749 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 (reported as part of the General Fund(s)) For the Fiscal Year Ended September 30, 2016 72 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 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, 2016, 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. 73 General Fund Economic Development Unclaimed Property Efficiency Time Payment Total General Fund(s) Assets Cash and cash equivalents $ 16,783,507 $ 655,024 $ 289,510 $ 51,758 $ 17,779,799 Equity in investments 2,179,003 85,077 37,603 6,723 2,308,406 Receivables (net of allow for uncollectible) 4,544,098 - - - 4,544,098 Investments interest receivable 2,976 111 - 9 3,096 Inventories 51,617 - - - 51,617 Prepaid costs 19,701 - - - 19,701 Loans receivable 893,638 - - - 893,638 Total assets $ 24,474,540 $ 740,212 $ 327,113 $ 58,490 $ 25,600,355 Liabilities Accounts payable 1,422,331 - 92 78 1,422,501 Accrued liabilities 1,682,133 - 327,021 - 2,009,154 Retainage payable 6,082 - - - 6,082 Customer construction advances 1,266,645 - - - 1,266,645 Refundable deposits 108,667 - - - 108,667 Total liabilities 4,485,858 - 327,113 78 4,813,049 Deferred inflows of resources Unavailable revenue-property taxes 192,942 - - - 192,942 Unavailable revenue-other 1,461,162 - - - 1,461,162 Total deferred inflow of resources 1,654,104 - - - 1,654,104 Fund balances Nonspendable 71,318 - - - 71,318 Assigned 2,171,129 - - - 2,171,129 Unassigned 16,092,131 740,212 - 58,412 16,890,755 Total fund balances 18,334,578 740,212 - 58,412 19,133,202 Total liabilities, deferred inflows of resources, and fund balances $ 24,474,540 $ 740,212 $ 327,113 $ 58,490 $ 25,600,355 CITY OF COLLEGE STATION, TEXAS Combining Balance Sheet General Fund(s) September 30, 2016 74 General Fund Economic Development Unclaimed Property Efficiency Time Payment Total General Fund(s) Revenues Ad valorem taxes $ 18,442,879 $ - $ - $ - $ 18,442,879 Sales taxes 27,163,480 - - - 27,163,480 Other taxes 3,131,535 - - - 3,131,535 Licenses and permits 2,132,802 - - - 2,132,802 Intergovernmental 1,373,950 - - - 1,373,950 Charges for services 3,809,206 - - - 3,809,206 Fines, forfeits, and penalties 3,249,901 - - 5,150 3,255,051 Investment income 143,711 4,254 - 337 148,302 Rents and royalties 187,328 - - - 187,328 Contributions 8,880 - - - 8,880 Other 434,537 - - - 434,537 Total revenues 60,078,209 4,254 - 5,487 60,087,950 Expenditures Police 20,170,450 - - - 20,170,450 Fire 16,916,819 - - - 16,916,819 Public works 11,162,508 - - - 11,162,508 Parks and recreation 9,279,126 - - - 9,279,126 Library 1,098,326 - - - 1,098,326 Planning and development services 3,243,768 - - - 3,243,768 Information technology 4,491,009 - - - 4,491,009 Fiscal services 3,727,249 - - 6,301 3,733,550 General government 5,220,218 304,253 - - 5,524,471 Contributions 1,220,251 - - - 1,220,251 Capital outlay 667,574 - - - 667,574 Other 863 - - - 863 Total expenditures 77,198,161 304,253 - 6,301 77,508,715 Excess (deficit) of revenues over (under) expenditures (17,119,952) (299,999) - (814) (17,420,765) Other financing sources (uses) Transfers in 16,132,346 375,000 - - 16,507,346 Transfers out (2,376,443) - - - (2,376,443) Total other financing sources (uses) 13,755,903 375,000 - - 14,130,903 Net change in fund balances (3,364,049) 75,001 - (814) (3,289,862) Fund balances - beginning 21,698,627 665,211 - 59,226 22,423,064 Fund balances - ending $ 18,334,578 $ 740,212 $ - $ 58,412 $ 19,133,202 CITY OF COLLEGE STATION, TEXAS Combining Statement of Revenues, Expenditures and Changes in Fund Balances General Fund(s) For the Fiscal Year Ended September 30, 2016 75 Variance with Actual GAAP Adjustments Actual Budget Final Budget Original Budget Final Budget Basis Budget Basis Basis Over (Under) Revenues Ad valorem taxes $ 18,267,815 $ 18,267,815 $ 18,442,879 $ - $ 18,442,879 $ 175,064 Sales taxes 27,592,000 27,592,000 27,163,480 - 27,163,480 (428,520) Other taxes 3,084,425 3,084,425 3,131,535 - 3,131,535 47,110 Licenses and permits 1,158,974 1,158,819 2,132,802 - 2,132,802 973,983 Intergovernmental 553,203 560,203 1,373,950 - 1,373,950 813,747 Charges for services 4,208,934 3,909,073 3,809,206 - 3,809,206 (99,867) Fines, forfeits, and penalties 2,745,510 2,745,510 3,249,901 - 3,249,901 504,391 Investment income 62,220 62,220 143,711 (2,767) 140,944 78,724 Rents and royalties - - 187,328 - 187,328 187,328 Contributions 10,947 10,947 8,880 - 8,880 (2,067) Other 237,999 531,015 434,537 - 434,537 (96,478) Total revenues 57,922,027 57,922,027 60,078,209 (2,767) 60,075,442 2,153,415 Expenditures Police 19,781,879 20,213,243 20,170,450 - 20,170,450 (42,793) Fire 16,743,432 16,899,025 16,916,819 - 16,916,819 17,794 Public works 11,223,624 11,393,022 11,162,508 - 11,162,508 (230,514) Parks and recreation 9,781,870 11,619,123 9,279,126 - 9,279,126 (2,339,997) Library 1,101,851 1,101,851 1,098,326 - 1,098,326 (3,525) Planning and development services 3,487,657 3,660,014 3,243,768 - 3,243,768 (416,246) Information technology 4,918,755 4,982,476 4,491,009 - 4,491,009 (491,467) Fiscal services 3,722,038 3,803,821 3,727,249 - 3,727,249 (76,572) General government 4,248,471 5,511,625 5,220,218 65,596 5,285,814 (225,811) Contributions 1,211,753 1,211,753 1,220,251 - 1,220,251 8,498 Other 2,333,457 2,968,142 863 - 863 (2,967,279) Capital outlay 671,232 667,574 - 667,574 (3,658) Total expenditures 78,554,787 84,035,327 77,198,161 65,596 77,263,757 (6,771,570) Excess (deficit) of revenues over (under) expenditures (20,632,760) (26,113,300) (17,119,952) (68,363) (17,188,315) 8,924,985 Other financing sources (uses) Transfers in 15,064,737 16,619,212 16,132,346 - 16,132,346 (486,866) Transfers out (3,395,468) (2,745,199) (2,376,443) - (2,376,443) 368,756 Contingency (250,000) (47,874) - - - 47,874 Total other financing sources (uses) 11,419,269 13,826,139 13,755,903 - 13,755,903 (70,236) Net change in fund balances (9,213,491) (12,287,161) (3,364,049) (68,363) (3,432,412) 8,854,749 Fund balances - beginning 21,698,627 21,698,627 21,698,627 - 21,698,627 - Fund balances - ending $ 12,485,136 $ 9,411,466 $ 18,334,578 $ (68,363) $ 18,266,215 $ 8,854,749 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 (reported as part of the General Fund(s)) For the Fiscal Year Ended September 30, 2016 76 Variance with Actual GAAP Adjustments Actual Budget Final Budget Original Budget Final Budget Basis Budget Basis Basis Over (Under) Revenues Investment income $ 1,000 $ 1,000 $ 4,254 $ (104) $ 4,150 $ 3,150 Total revenues 1,000 1,000 4,254 (104) 4,150 3,150 Expenditures General government 766,839 766,839 304,253 - 304,253 (462,586) Other 20,000 20,000 - - - (20,000) Total expenditures 786,839 786,839 304,253 - 304,253 (482,586) Excess (deficit) of revenues over (under) expenditures (785,839) (785,839) (299,999) (104) (300,103) 485,736 Other financing sources (uses) Transfers in 875,000 875,000 375,000 - 375,000 (500,000) Total other financing sources (uses) 875,000 875,000 375,000 - 375,000 (500,000) Net change in fund balances 89,161 89,161 75,001 (104) 74,897 (14,264) Fund balances - beginning 665,211 665,211 665,211 - 665,211 - Fund balances - ending $ 754,372 $ 754,372 $ 740,212 $ (104) $ 740,108 $ (14,264) CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance For the Fiscal Year Ended September 30, 2016 Budget and Actual Economic Development Fund (reported as part of the General Fund(s)) 77 Variance with Actual GAAP Adjustments Actual Budget Final Budget Original Budget Final Budget Basis Budget Basis Basis Over (Under) Revenues Fines, forfeits, and penalties $ 6,462 $ 6,462 $ 5,150 $ - $ 5,150 $ (1,312) Investment income 211 211 337 (8) 329 118 Total revenues 6,673 6,673 5,487 (8) 5,479 (1,194) Expenditures General government 11,160 11,160 6,301 - 6,301 (4,859) Total expenditures 11,160 11,160 6,301 - 6,301 (4,859) Excess (deficit) of revenues over (under) expenditures (4,487) (4,487) (814) (8) (822) 3,665 Other financing sources (uses) Total other financing sources (uses) - - - - - - Net change in fund balances (4,487) (4,487) (814) (8) (822) 3,665 Fund balances - beginning 59,226 59,226 59,226 - 59,226 - Fund balances - ending $ 54,739 $ 54,739 $ 58,412 $ (8) $ 58,404 $ 3,665 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, 2016 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 Fee 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 – 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. Community Development Block Grant (CDBG) Local Account – account for the repayment of funds used to purchase land on Holleman Drive. This property was purchased with the intent of developing CDBG eligible housing, but was later sold to allow for private development. 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 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 sidewalks. Drainage Utility Fund – 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. 79 Truancy Prevention Fee Fund – account for funds collected by municipal court used to fund truancy prevention and intervention services. West Medical District Tax Increment Reinvestment Zone No. 18 Fund – account for the receipt and expenditure of funds received by the City from the creation of a tax increment financing district for the West Medical District. East Medical District Tax Increment Reinvestment Zone No. 19 Fund – account for the receipt and expenditure of funds received by the City from the creation of a tax increment financing district for the East Medical District. Public, Educational and Government Access Channel Fee Fund – account for fees collected to fund educational and governmental broadcasting on the local access channel. R.E. Meyer Estate Restricted Gift Fund – account for gift bequest to be used for programs designed to benefit senior citizens. 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 – 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 – 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. 80 Court Technology Fee Court Security Fee Juvenile Case Manager Police Seizure Memorial Cemetery Memorial Cemetery Endowment Texas Ave Cemetery Endowment Hotel Tax Community Development Community Development Block Grant Local Account Assets Cash and cash equivalents $ 419,835 $ 18,527 $ 230,090 $ 91,762 $ 1,311,465 $ 906,813 $ 1,667,731 $ 15,952,114 $ 195,943 $ 2,390,944 Equity in investments 54,530 2,406 29,885 11,918 170,339 117,781 216,612 2,071,933 25,450 - Receivables (net of allow for uncollectible) - - - - 9,054 4,459 120 - 505,494 - Investments interest receivable 71 4 39 16 223 153 283 2,704 - - Inventories - - - - 4,013,133 1,976,618 153 - - - Loans receivable - - - - - - - - 1,523,166 - Total assets $ 474,436 $ 20,937 $ 260,014 $ 103,696 $ 5,504,214 $ 3,005,824 $ 1,884,899 $ 18,026,751 $ 2,250,053 $ 2,390,944 Liabilities Accounts payable 19,100 - - - 917 458 632 295,047 27,131 - Accrued liabilities - 1,555 3,469 - - - - - 6,674 - Retainage payable - - - - - - - - - - Interfund payable - - - - - - - - 2,390,944 - Total liabilities 19,100 1,555 3,469 - 917 458 632 295,047 2,424,749 - Deferred inflows of resources Unavailable revenue-loans receivable - - - - - - - - 241,001 - Unavailable revenue-other - - - - 9,054 4,459 120 - - - Total deferred inflows of resources - - - - 9,054 4,459 120 - 241,001 - Fund balances Nonspendable $ - $ - $ - $ - $ 4,013,133 $ 1,976,618 $ 153 $ - $ - $ - Restricted 455,336 19,382 256,545 103,696 - - - 10,380,765 (415,697) 2,390,944 Committed - - - - 1,481,110 1,024,289 1,883,994 7,350,939 - - Assigned - - - - - - - - - - Unassigned - - - - - - - - - - Total fund balances 455,336 19,382 256,545 103,696 5,494,243 3,000,907 1,884,147 17,731,704 (415,697) 2,390,944 Total liabilities, deferred inflows of resources and fund balances $ 474,436 $ 20,937 $ 260,014 $ 103,696 $ 5,504,214 $ 3,005,824 $ 1,884,899 $ 18,026,751 $ 2,250,053 $ 2,390,944 September 30, 2016 Nonmajor Governmental Funds Combining Balance Sheet CITY OF COLLEGE STATION, TEXAS Special Revenue 81 Wolf Pen Creek Tax Increment Financing District Parks Escrow Sidewalk Zones Drainage Utility Truancy Prevention Fee West Medical District Tax Increment Reinvestment Zone No. 18 East Medical District Tax Increment Reinvestment Zone No. 19 Public, Educational and Governmental Access Channel Fee R.E. Meyer Estate Restricted Gift General Government Projects Parks and Recreation Projects Total Other Governmental Funds $ 1,120,405 $ 5,624,558 $ 77,344 $ 1,901,612 $ 34,055 $ 398,742 $ 2,547 $ 443,864 $ 502,799 $ 10,430,973 $ 7,290,729 $ 51,012,852 145,523 730,543 10,046 246,990 4,423 51,790 332 57,651 65,306 1,354,822 946,953 6,315,233 - - - 236,866 - - - - - - - 755,993 190 957 13 322 5 68 - 75 85 1,769 1,236 8,213 - - - - - - - - - - - 5,989,904 - - - - - - - - - - - 1,523,166 $ 1,266,118 $ 6,356,058 $ 87,403 $ 2,385,790 $ 38,483 $ 450,600 $ 2,879 $ 501,590 $ 568,190 $ 11,787,564 $ 8,238,918 $ 65,605,361 - 1,248 - 37,194 - - - - - 94,714 175,277 651,718 - - - 29,420 - - - - - - - 41,118 - - - 9,244 - - - - - - 8,943 18,187 - - - - - - - - - - - 2,390,944 - 1,248 - 75,858 - - - - - 94,714 184,220 3,101,967 - - - - - - - - - - - 241,001 - - - - - - - - - - - 13,633 - - - - - - - - - - - 254,634 $ - $ - $ - $ - $ - $ - $ - $ - $ - -$ -$ $ 5,989,904 1,266,118 6,354,810 87,403 - 38,483 450,600 2,879 501,590 568,190 6,804,372 8,054,698 37,320,114 - - - 2,309,932 - - - - - - - 14,050,264 - - - - - - - - - 4,888,478 - 4,888,478 - - - - - - - - - - - - 1,266,118 6,354,810 87,403 2,309,932 38,483 450,600 2,879 501,590 568,190 11,692,850 8,054,698 62,248,760 $ 1,266,118 $ 6,356,058 $ 87,403 $ 2,385,790 $ 38,483 $ 450,600 $ 2,879 $ 501,590 $ 568,190 $ 11,787,564 $ 8,238,918 $ 65,605,361 Capital Projects CITY OF COLLEGE STATION, TEXAS Combining Balance Sheet (continued) Nonmajor Governmental Funds September 30, 2016 82 Court Technology Fee Court Security Fee Juvenile Case Manager Police Seizure Memorial Cemetery Memorial Cemetery Endowment Texas Ave Cemetery Endowment Hotel Tax Community Development Community Development Block Grant Local Account Revenues Ad valorem taxes $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Sales taxes - - - - - - - - - - Other taxes - - - - - - - 5,277,314 - - Intergovernmental - - - 40,016 - - - - 1,537,216 - Charges for services - - - - 297,447 146,504 22,985 - - - Fines, forfeits, and penalties 82,375 61,786 103,024 - - - - - - - Investment income 2,631 72 1,489 593 8,688 5,492 10,838 100,650 - - Contributions - - - - - - - - - - Other - - - 1,082 - - 1,927 12,766 9,055 - Total revenues 85,006 61,858 104,513 41,691 306,135 151,996 35,750 5,390,730 1,546,271 - Expenditures Police - - - 14,037 - - - - - - Public works - - - - - - - - - - Parks and recreation - - - - 177,250 91,279 3,136 133,777 - - Planning and development services - - - - - - - - - - Fiscal services 73,496 66,406 110,494 - - - - - - - General government - - - - - - - - 1,138,176 - Contributions - - - - - - - 2,827,545 - - Other - - - - - - - 5,032 - - Capital outlay - - - - - - - 217,133 337,589 - Debt services Debt Issuance costs - - - - - - - - - - Total expenditures 73,496 66,406 110,494 14,037 177,250 91,279 3,136 3,183,487 1,475,765 - Excess (deficit) of revenues over (under) expenditures 11,510 (4,548) (5,981) 27,654 128,885 60,717 32,614 2,207,243 70,506 - Other financing sources (uses) Issuance of bonds - - - - - - - - - - Premiums on bonds issued - - - - - - - - - - Transfers in - - - - - - - - - 2,390,944 Transfers out - - - - (363,101) - - (553,946) (2,414,702) - Total other financing sources (uses) - - - - (363,101) - - (553,946) (2,414,702) 2,390,944 Net change in fund balances 11,510 (4,548) (5,981) 27,654 (234,216) 60,717 32,614 1,653,297 (2,344,196) 2,390,944 Fund balances - beginning 443,826 23,930 262,526 76,042 5,728,459 2,940,190 1,851,533 16,078,407 1,928,499 - Fund balances - ending $ 455,336 $ 19,382 $ 256,545 $ 103,696 $ 5,494,243 $ 3,000,907 $ 1,884,147 $ 17,731,704 $ (415,697) $ 2,390,944 CITY OF COLLEGE STATION, TEXAS Combining Statement of Revenues, Expenditures, and Changes in Fund Balance Nonmajor Governmental Funds For the Fiscal Year Ended September 30, 2016 Special Revenue 83 Wolf Pen Creek Tax Increment Financing District Parks Escrow Sidewalk Zones Drainage Utility Truancy Prevention Fee West Medical District Tax Increment Reinvestment Zone No. 18 East Medical District Tax Increment Reinvestment Zone No. 19 Public, Educational and Governmental Access Channel Fee R.E. Meyer Estate Restricted Gift General Government Projects Parks and Recreation Projects Total Other Governmental Funds $ - $ - $ - $ - $ - $ 181,735 $ 822 $ - $ - $ - $ - 182,557$ - - - - - - - - - - - - - - - - - - - 198,553 - - - 5,475,867 - - - - - - - - - 1,577,232 - - - 2,184,111 - - - - - - 108,175 2,759,222 - - - - 16,302 - - - - - - 263,487 7,304 33,015 417 17,336 176 1,580 12 2,768 3,279 38,833 47,542 282,715 - 1,914,131 30,034 - - - - - - - - 1,944,165 - 6,323 - 3,441 - - - - - - 73 34,667 7,304 1,953,469 30,451 2,204,888 16,478 183,315 834 201,321 3,279 38,833 155,790 12,519,912 - - - - - - - - - - - 14,037 - - - 1,169,152 - - - - - - - 1,169,152 - - - - - - - - - - - 405,442 - - - 109,193 - - - - - - - 109,193 - - - - - - - - - 1,130 - 251,526 - - - - - - - 85,707 - - - 1,223,883 - - - - - - - - - - 89 2,827,634 - - - - - - - - - - - 5,032 - 187,817 - 573,385 - - - - - 2,567,325 273,149 4,156,398 - - - - - - - - - 24,552 - 24,552 - 187,817 - 1,851,730 - - - 85,707 - 2,593,007 273,238 10,186,849 7,304 1,765,652 30,451 353,158 16,478 183,315 834 115,614 3,279 (2,554,174) (117,448)2,333,063 - - - - - - - - - 6,691,135 - 6,691,135 - - - - - - - - - 519,075 - 519,075 - - - - - - - - - 1,285,094 - 3,676,038 - (31,443) - (1,144,865) - - - - - (97,286) (46,516)(4,651,859) - (31,443) - (1,144,865) - - - - - 8,398,018 (46,516)6,234,389 7,304 1,734,209 30,451 (791,707) 16,478 183,315 834 115,614 3,279 5,843,844 (163,964)8,567,452 1,258,814 4,620,601 56,952 3,101,639 22,005 267,285 2,045 385,976 564,911 5,849,006 8,218,662 53,681,308 $ 1,266,118 $ 6,354,810 $ 87,403 $ 2,309,932 $ 38,483 $ 450,600 $ 2,879 $ 501,590 $ 568,190 $ 11,692,850 $ 8,054,698 62,248,760$ Capital Projects CITY OF COLLEGE STATION, TEXAS Combining Statement of Revenues, Expenditures, and Changes in Fund Balance (continued) Nonmajor Governmental Funds For the Fiscal Year Ended September 30, 2016 84 Variance with Actual GAAP Adjustments Actual Budget Final Budget Original Budget Final Budget Basis Budget Basis Basis Over (Under) Revenues Fines, forfeits, and penalties $ 59,545 $ 59,545 $ 82,375 -$ $ 82,375 $ 22,830 Investment income 1,543 1,543 2,631 (66) 2,565 1,022 Total revenues 61,088 61,088 85,006 (66) 84,940 23,852 Expenditures Fiscal services 80,619 99,519 73,496 - 73,496 (26,023) Total expenditures 80,619 99,519 73,496 - 73,496 (26,023) Excess (deficit) of revenues over (under) expenditures (19,531) (38,431) 11,510 (66) 11,444 49,875 Other financing sources (uses) Total other financing sources (uses) - - - - - - Net change in fund balances (19,531) (38,431) 11,510 (66) 11,444 49,875 Fund balances - beginning 443,826 443,826 443,826 - 443,826 - Fund balances - ending $ 424,295 $ 405,395 $ 455,336 $ (66) $ 455,270 $ 49,875 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, 2016 85 Variance with Actual GAAP Adjustments Actual Budget Final Budget Original Budget Final Budget Basis Budget Basis Basis Over (Under) Revenues Fines, forfeits, and penalties $ 44,100 $ 44,100 $ 61,786 $ - $ 61,786 $ 17,686 Investment income 162 162 72 - 72 (93) Total revenues 44,262 44,262 61,858 - 61,858 17,593 Expenditures Fiscal services 79,840 59,880 66,406 - 66,406 6,526 Total expenditures 79,840 59,880 66,406 - 66,406 6,526 Excess (deficit) of revenues over (under) expenditures (35,578) (15,618) (4,548) - (4,548) 11,067 Other financing sources (uses) Transfer In 17,000 17,000 - - - (17,000) Total other financing sources (uses) 17,000 17,000 - - - (17,000) Net change in fund balances (18,578) 1,382 (4,548) - (4,548) 5,930 Fund balances - beginning 23,930 23,930 23,930 - 23,930 - Fund balances - ending $ 5,352 $ 25,312 $ 19,382 $ - $ 19,382 $ 5,930 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, 2016 86 Variance with Actual GAAP Adjustments Actual Budget Final Budget Original Budget Final Budget Basis Budget Basis Basis Over (Under) Revenues Fines, forfeits, and penalties $ 73,056 $ 73,056 $ 103,024 $ - $ 103,024 $ 29,968 Investment income 1,033 1,033 1,489 (36) 1,453 420 Total revenues 74,089 74,089 104,513 (36) 104,477 30,388 Expenditures Fiscal services 111,433 111,433 110,494 - 110,494 (939) Total expenditures 111,433 111,433 110,494 - 110,494 (939) Excess (deficit) of revenues over (under) expenditures (37,344) (37,344) (5,981) (36) (6,017) 31,327 Other financing sources (uses) Total other financing sources (uses) - - - - - - Net change in fund balances (37,344) (37,344) (5,981) (36) (6,017) 31,327 Fund balances - beginning 262,526 262,526 262,526 - 262,526 - Fund balances - ending $ 225,182 $ 225,182 $ 256,545 $ (36) $ 256,509 $ 31,327 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, 2016 87 Variance with Actual GAAP Adjustments Actual Budget Final Budget Original Budget Final Budget Basis Budget Basis Basis Over (Under) Revenues Intergovernmental $ 15,000 $ 15,000 $ 40,016 $ 0 $ 40,016 $ 25,016 Investment income 200 200 593 (14) 579 379 Other - - 1,082 - 1,082 1,082 Total revenues 15,200 15,200 41,691 (14) 41,677 26,477 Expenditures Fiscal services - 14,500 - - - (14,500) Police 20,000 42,500 14,037 - 14,037 (28,463) Total expenditures 20,000 57,000 14,037 - 14,037 (42,963) Excess (deficit) of revenues over (under) expenditures (4,800) (41,800) 27,654 (14) 27,640 69,440 Other financing sources (uses) Total other financing source (uses) - - - - - - Net change in fund balances (4,800) (41,800) 27,654 (14) 27,640 69,440 Fund balances - beginning 76,042 76,042 76,042 - 76,042 - Fund balances - ending $ 71,242 $ 34,242 $ 103,696 $ (14) $ 103,682 $ 69,440 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, 2016 88 Variance with Actual GAAP Adjustments Actual Budget Final Budget Original Budget Final Budget Basis Budget Basis Basis Over (Under) Revenues Charges for services $ 243,478 $ 243,478 $ 297,447 $ - $ 297,447 $ 53,969 Investment income 5,000 5,000 8,688 (207) 8,481 3,481 Total revenues 248,478 248,478 306,135 (207) 305,928 57,450 Expenditures Parks and recreation - - 177,250 (170,348) 6,902 6,902 Total expenditures - - 177,250 (170,348) 6,902 6,902 Excess (deficit) of revenues over (under) expenditures 248,478 248,478 128,885 170,141 299,026 50,548 Other financing sources (uses) Transfers out (363,101) (363,101) (363,101) - (363,101) - Total other financing sources (uses) (363,101) (363,101) (363,101) - (363,101) - Net change in fund balances (114,623) (114,623) (234,216) 170,141 (64,075) 50,548 Fund balances - beginning 5,728,459 5,728,459 5,728,459 - 5,728,459 - Fund balances - ending $ 5,613,836 $ 5,613,836 $ 5,494,243 $ 170,141 $ 5,664,384 $ 50,548 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, 2016 89 Variance with Actual GAAP Adjustments Actual Budget Final Budget Original Budget Final Budget Basis Budget Basis Basis Over (Under) Revenues Charges for services $ 119,922 $ 119,922 $ 146,504 $ - $ 146,504 $ 26,582 Investment income 5,000 5,000 5,492 (143) 5,349 349 Total revenues 124,922 124,922 151,996 (143) 151,853 26,931 Expenditures Parks and recreation 25,000 25,000 91,279 (83,902) 7,377 (17,623) Total expenditures 25,000 25,000 91,279 (83,902) 7,377 (17,623) Excess (deficit) of revenues over (under) expenditures 99,922 99,922 60,717 83,759 144,476 44,554 Other financing sources (uses) Total other financing sources (uses) - - - - - - Net change in fund balances 99,922 99,922 60,717 83,759 144,476 44,554 Fund balances - beginning 2,940,190 2,940,190 2,940,190 - 2,940,190 - Fund balances - ending $ 3,040,112 $ 3,040,112 $ 3,000,907 $ 83,759 $ 3,084,666 $ 44,554 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, 2016 90 Variance with Actual GAAP Adjustments Actual Budget Final Budget Original Budget Final Budget Basis Budget Basis Basis Over (Under) Revenues Charges for services $ 10,000 $ 10,000 $ 22,985 $ - $ 22,985 $ 12,985 Investment income 5,460 5,460 10,838 (263) 10,575 5,115 Other - - 1,927 - 1,927 1,927 Total revenues 15,460 15,460 35,750 (263) 35,487 20,027 Expenditures Parks and recreation - - 3,136 (36) 3,100 3,100 Total expenditures - - 3,136 (36) 3,100 3,100 Excess (deficit) of revenues over (under) expenditures 15,460 15,460 32,614 (227) 32,387 16,927 Other financing sources (uses) Total other financing sources (uses) - - - - - - Net change in fund balances 15,460 15,460 32,614 (227) 32,387 16,927 Fund balances - beginning 1,851,533 1,851,533 1,851,533 - 1,851,533 - Fund balances - ending $ 1,866,993 $ 1,866,993 $ 1,884,147 $ (227) $ 1,883,920 $ 16,927 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, 2016 91 Variance with Actual GAAP Adjustments Actual Budget Final Budget Original Budget Final Budget Basis Budget Basis Basis Over (Under) Revenues Other taxes $ 5,502,000 $ 5,502,000 $ 5,277,314 $ - $ 5,277,314 $ (224,686) Investment income 40,000 40,000 100,650 (2,514) 98,136 58,136 Other - - 12,766 - 12,766 12,766 Total revenues 5,542,000 5,542,000 5,390,730 (2,514) 5,388,216 (153,784) Expenditures Parks and recreation 300,000 300,000 133,777 (7,732) 126,045 (173,955) General government 152,500 312,500 - - - (312,500) Contributions 3,320,755 3,320,755 2,827,545 - 2,827,545 (493,210) Other - - 5,032 - 5,032 5,032 Capital outlay 3,673,274 3,673,274 217,133 - 217,133 (3,456,141) Total expenditures 7,446,529 7,606,529 3,183,487 (7,732) 3,175,755 (4,430,774) Excess (deficit) of revenues over (under) expenditures (1,904,529) (2,064,529) 2,207,243 5,218 2,212,461 4,276,990 Other financing sources (uses) Transfers in - - - - - - Transfers out (664,275) (664,275) (553,946) - (553,946) 110,329 Total other financing sources (uses) (664,275) (664,275) (553,946) - (553,946) 110,329 Net change in fund balances (2,568,804) (2,728,804) 1,653,297 5,218 1,658,515 4,387,319 Fund balances - beginning 16,078,407 16,078,407 16,078,407 - 16,078,407 - Fund balances - ending $ 13,509,603 $ 13,349,603 $ 17,731,704 $ 5,218 $ 17,736,922 $ 4,387,319 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, 2016 92 Variance with Actual GAAP Adjustments Actual Budget Final Budget Original Budget Final Budget Basis Budget Basis Basis Over (Under) Revenues Intergovernmental $ 2,322,326 $ 2,322,326 $ 1,537,216 $ - $ 1,537,216 $ (785,110) Other - - 9,055 - 9,055 9,055 Total revenues 2,322,326 2,322,326 1,546,271 - 1,546,271 (776,055) Expenditures General government 1,370,112 1,370,112 1,138,176 47,718 1,185,894 (184,218) Capital outlay 952,214 952,214 337,589 - 337,589 (614,625) Total expenditures 2,322,326 2,322,326 1,475,765 47,718 1,523,483 (798,843) Excess (deficit) of revenues over (under) expenditures - - 70,506 (47,718) 22,788 22,788 Other financing sources (uses) Transfers out - (2,930,944) (2,414,702) 2,998 (2,411,704) 519,240 Total other financing sources (uses) - (2,930,944) (2,414,702) 2,998 (2,411,704) 519,240 Net change in fund balances - (2,930,944) (2,344,196) (44,720) (2,388,916) 542,028 Fund balances - beginning 1,928,499 1,928,499 1,928,499 - 1,928,499 - Fund balances - ending $ 1,928,499 $ (1,002,445) $ (415,697) $ (44,720) $ (460,417) $ 542,028 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, 2016 93 Variance with Actual GAAP Adjustments Actual Budget Final Budget Original Budget Final Budget Basis Budget Basis Basis Over (Under) Revenues Total revenues $ - $ - $ - $ - $ - $ - Expenditures Total expenditures - 2,390,944 - - - (2,390,944) Excess (deficit) of revenues over (under) expenditures - (2,390,944) - - - (2,390,944) Other financing sources (uses) Transfers in - 2,390,944 2,390,944 - 2,390,944 - Total other financing sources (uses) - 2,390,944 2,390,944 - 2,390,944 - Net change in fund balances - - 2,390,944 - 2,390,944 2,390,944 Fund balances - beginning - - - - - - Fund balances - ending $ - $ - $ 2,390,944 $ - $ 2,390,944 $ 2,390,944 CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Community Development Block Grant Local Account Fund For the Fiscal Year Ended September 30, 2016 94 Variance with Actual GAAP Adjustments Actual Budget Final Budget Original Budget Final Budget Basis Budget Basis Basis Over (Under) Revenues Investment income $ 4,500 $ 4,500 $ 7,304 $ (176) $ 7,128 $ 2,628 Total revenues 4,500 4,500 7,304 (176) 7,128 2,628 Expenditures Total expenditures - - - - - - Excess (deficit) of revenues over (under) expenditures 4,500 4,500 7,304 (176) 7,128 2,628 Other financing sources (uses) Total other financing sources (uses) - - - - - - Net change in fund balances 4,500 4,500 7,304 (176) 7,128 2,628 Fund balances - beginning 1,258,814 1,258,814 1,258,814 - 1,258,814 - Fund balances - ending $ 1,263,314 $ 1,263,314 $ 1,266,118 $ (176) $ 1,265,942 $ 2,628 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, 2016 95 Variance with Actual GAAP Adjustments Actual Budget Final Budget Original Budget Final Budget Basis Budget Basis Basis Over (Under) Revenues Investment income $ 10,000 $ 10,000 $ 33,015 $ (889) $ 32,126 $ 22,126 Contributions 300,000 300,000 1,914,131 - 1,914,131 1,614,131 Other - - 6,323 - 6,323 6,323 Total revenues 310,000 310,000 1,953,469 (889) 1,952,580 1,642,580 Expenditures Capital outlay 3,769,900 3,769,900 187,817 - 187,817 (3,582,083) Total expenditures 3,769,900 3,769,900 187,817 - 187,817 (3,582,083) Excess (deficit) of revenues over (under) expenditures (3,459,900) (3,459,900) 1,765,652 (889) 1,764,763 5,224,663 Other financing sources (uses) Transfers in - - - - - - Transfers out (21,909) (21,909) (31,443) 9,534 (21,909) - Total other financing sources (uses) (21,909) (21,909) (31,443) 9,534 (21,909) - Net change in fund balances (3,481,809) (3,481,809) 1,734,209 8,645 1,742,854 5,224,663 Fund balances - beginning 4,620,601 4,620,601 4,620,601 - 4,620,601 - Fund balances - ending $ 1,138,792 $ 1,138,792 $ 6,354,810 $ 8,645 $ 6,363,455 $ 5,224,663 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, 2016 96 Variance with Actual GAAP Adjustments Actual Budget Final Budget Original Budget Final Budget Basis Budget Basis Basis Over (Under) Revenues Investment income $ - $ - $ 417 $ (12) $ 405 $ 405 Contributions - - 30,034 - 30,034 30,034 Total revenues - - 30,451 (12) 30,439 30,439 Expenditures - - - - - - Total expenditures - - - - - - Excess (deficit) of revenues over (under) expenditures - - 30,451 (12) 30,439 30,439 Other financing sources (uses) - - - - - - Total other financing sources (uses) - - - - - - Net change in fund balances - - 30,451 (12) 30,439 30,439 Fund balances - beginning 56,952 56,952 56,952 - 56,952 - Fund balances - ending $ 56,952 $ 56,952 $ 87,403 $ (12) $ 87,391 $ 30,439 CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Sidewalk Zones Fund For the Fiscal Year Ended September 30, 2016 97 Variance with Actual GAAP Adjustments Actual Budget Final Budget Original Budget Final Budget Basis Budget Basis Basis Over (Under) Revenues Ad valorem taxes $ - $ - $ - $ - $ - $ - Charges for services 2,184,100 2,184,100 2,184,111 - 2,184,111 11 Investment income 8,000 8,000 17,336 (300) 17,036 9,036 Other - - 3,441 - 3,441 3,441 Total revenues 2,192,100 2,192,100 2,204,888 (300) 2,204,588 12,488 Expenditures Public works 1,371,014 1,428,904 1,169,152 (10,642) 1,158,510 (270,394) Planning and development services 114,725 140,942 109,193 - 109,193 (31,749) Capital outlay 635,000 635,000 573,385 - 573,385 (61,615) Total expenditures 2,120,739 2,204,846 1,851,730 (10,642) 1,841,088 (363,758) Excess (deficit) of revenues over (under) expenditures 71,361 (12,746) 353,158 10,342 363,500 376,246 Other financing sources (uses) Transfers out (569,692) (569,692) (1,144,865) 22,956 (1,121,909) (552,217) Total other financing sources (uses) (569,692) (569,692) (1,144,865) 22,956 (1,121,909) (552,217) Net change in fund balances (498,331) (582,438) (791,707) 33,298 (758,409) (175,971) Fund balances - beginning 3,101,639 3,101,639 3,101,639 - 3,101,639 - Fund balances - ending $ 2,603,308 $ 2,519,201 $ 2,309,932 $ 33,298 $ 2,343,230 $ (175,971) CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Drainage Utility Fund For the Fiscal Year Ended September 30, 2016 98 Variance with Actual GAAP Adjustments Actual Budget Final Budget Original Budget Final Budget Basis Budget Basis Basis Over (Under) Revenues Fines, forfeits, and penalties $ 12,749 $ 12,749 $ 16,302 $ - $ 16,302 $ 3,553 Investment income 36 36 176 (5) 171 135 Total revenues 12,785 12,785 16,478 (5) 16,473 3,688 Expenditures Fiscal services 5,000 5,000 - - - (5,000) Total expenditures 5,000 5,000 - - - (5,000) Excess (deficit) of revenues over (under) expenditures 7,785 7,785 16,478 (5) 16,473 8,688 Other financing sources (uses) Total other financing sources (uses) - - - - - - Net change in fund balances 7,785 7,785 16,478 (5) 16,473 8,688 Fund balances - beginning 22,005 22,005 22,005 - 22,005 - Fund balances - ending $ 29,790 $ 29,790 $ 38,483 $ (5) $ 38,478 $ 8,688 CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Truancy Prevention Fee Fund For the Fiscal Year Ended September 30, 2016 99 Variance with Actual GAAP Adjustments Actual Budget Final Budget Original Budget Final Budget Basis Budget Basis Basis Over (Under) Revenues Ad valorem taxes $ 181,562 $ 181,562 $ 181,735 $ - $ 181,735 $ 173 Investment income 2,500 2,500 1,580 (63) 1,517 (983) Total revenues 184,062 184,062 183,315 (63) 183,252 (810) Expenditures Total expenditures - - - - - - Excess (deficit) of revenues over (under) expenditures 184,062 184,062 183,315 (63) 183,252 (810) Other financing sources (uses) Total other financing sources (uses) - - - - - - Net change in fund balances 184,062 184,062 183,315 (63) 183,252 (810) Fund balances - beginning 267,285 267,285 267,285 - 267,285 - Fund balances - ending $ 451,347 $ 451,347 $ 450,600 $ (63) $ 450,537 $ (810) CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual West Medical District Tax Increment Reinvestment Zone No. 18 Fund For the Fiscal Year Ended September 30, 2016 100 Variance with Actual GAAP Adjustments Actual Budget Final Budget Original Budget Final Budget Basis Budget Basis Basis Over (Under) Revenues Ad valorem taxes $ 822 $ 822 $ 822 $ - $ 822 $ - Investment income 50 50 12 - 12 (38) Total revenues 872 872 834 - 834 (38) Expenditures Total expenditures - - - - - - Excess (deficit) of revenues over (under) expenditures 872 872 834 - 834 (38) Other financing sources (uses) Total other financing sources (uses) - - - - - - Net change in fund balances 872 872 834 - 834 (38) Fund balances - beginning 2,045 2,045 2,045 - 2,045 - Fund balances - ending $ 2,917 $ 2,917 $ 2,879 $ - $ 2,879 $ (38) CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual East Medical District Tax Increment Reinvestment Zone No. 19 Fund For the Fiscal Year Ended September 30, 2016 101 Variance with Actual GAAP Adjustments Actual Budget Final Budget Original Budget Final Budget Basis Budget Basis Basis Over (Under) Revenues Other taxes $ 206,142 $ 206,142 $ 198,553 $ - $ 198,553 $ (7,589) Investment income 914 914 2,768 (70) 2,698 1,784 Total revenues 207,056 207,056 201,321 (70) 201,251 (5,805) Expenditures General government 129,820 129,820 85,707 - 85,707 (44,113) Total expenditures 129,820 129,820 85,707 - 85,707 (44,113) Excess (deficit) of revenues over (under) expenditures 77,236 77,236 115,614 (70) 115,544 38,308 Other financing sources (uses) Total other financing sources (uses) - - - - - - Net change in fund balances 77,236 77,236 115,614 (70) 115,544 38,308 Fund balances - beginning 385,976 385,976 385,976 - 385,976 - Fund balances - ending $ 463,212 $ 463,212 $ 501,590 $ (70) $ 501,520 $ 38,308 CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Public, Educational and Governmental Access Channel Fee Fund For the Fiscal Year Ended September 30, 2016 102 Variance with Actual GAAP Adjustments Actual Budget Final Budget Original Budget Final Budget Basis Budget Basis Basis Over (Under) Revenues Investment income $ 2,200 $ 2,200 $ 3,279 $ (80) $ 3,199 $ 999 Total revenues 2,200 2,200 3,279 (80) 3,199 999 Expenditures Total expenditures - - - - - - Excess (deficit) of revenues over (under) expenditures 2,200 2,200 3,279 (80) 3,199 999 Other financing sources (uses) Total other financing sources (uses) - - - - - - Net change in fund balances 2,200 2,200 3,279 (80) 3,199 999 Fund balances - beginning 564,911 564,911 564,911 - 564,911 - Fund balances - ending $ 567,111 $ 567,111 $ 568,190 $ (80) $ 568,110 $ 999 CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual R. E. Meyer Estate Restricted Gift Fund For the Fiscal Year Ended September 30, 2016 103 Variance with Actual GAAP Adjustments Actual Budget Final Budget Original Budget Final Budget Basis Budget Basis Basis Over (Under) Revenues Intergovernmental $ 20,000 $ 20,000 $ 38,833 $ (1,644) $ 37,189 $ 17,189 Other 10,000 10,000 - - - (10,000) Total revenues 30,000 30,000 38,833 (1,644) 37,189 7,189 Expenditures Fiscal services - - 1,130 - 1,130 1,130 General government 7,320,000 7,320,000 - - - (7,320,000) Capital outlay 5,536,650 5,536,650 2,567,325 - 2,567,325 (2,969,325) Debt issuance costs - - 24,552 - 24,552 24,552 Total expenditures 12,856,650 12,856,650 2,593,007 - 2,593,007 (10,263,643) Excess (deficit) of revenues over (under) expenditures (12,826,650) (12,826,650) (2,554,174) (1,644) (2,555,818) 10,270,832 Other financing sources (uses) Issuance of debt 6,405,000 6,405,000 6,691,135 - 6,691,135 286,135 Premium on bonds issued - - 519,075 - 519,075 519,075 Transfers in 2,336,650 2,336,650 1,285,094 - 1,285,094 (1,051,556) Transfers out (81,790) (81,790) (97,286) 15,496 (81,790) - Total other financing sources (uses) 8,659,860 8,659,860 8,398,018 15,496 8,413,514 (246,346) Net change in fund balances (4,166,790) (4,166,790) 5,843,844 13,852 5,857,696 10,024,486 Fund balances - beginning 5,849,006 5,849,006 5,849,006 - 5,849,006 - Fund balances - ending $ 1,682,216 $ 1,682,216 $ 11,692,850 $ 13,852 $ 11,706,702 $ 10,024,486 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, 2016 104 Variance with Actual GAAP Adjustments Actual Budget Final Budget Original Budget Final Budget Basis Budget Basis Basis Over (Under) Revenues Charges for services $ 85,000 $ 85,000 $ 108,175 $ - $ 108,175 $ 23,175 Investment income 15,000 15,000 47,542 (1,149) 46,393 31,393 Other - - 73 - 73 73 Total revenues 100,000 100,000 155,790 (1,149) 154,641 54,641 Expenditures Contributions - - 89 - 89 89 Capital outlay 184,750 184,750 273,149 - 273,149 88,399 Total expenditures 184,750 184,750 273,238 - 273,238 88,488 Excess (deficit) of revenues over (under) expenditures (84,750) (84,750) (117,448) (1,149) (118,597) (33,847) Other financing sources (uses) Issuance of debt (5,000) (5,000) - - - 5,000 Transfers in - - - - - - Transfers out (32,863) (32,863) (46,516) 13,653 (32,863) - Total other financing sources (uses) (37,863) (37,863) (46,516) 13,653 (32,863) 5,000 Net change in fund balances (122,613) (122,613) (163,964) 12,504 (151,460) (28,847) Fund balances - beginning 8,218,662 8,218,662 8,218,662 - 8,218,662 - Fund balances - ending $ 8,096,049 $ 8,096,049 $ 8,054,698 $ 12,504 $ 8,067,202 $ (28,847) 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, 2016 105 Variance with Actual GAAP Adjustments Actual Budget Final Budget Original Budget Final Budget Basis Budget Basis Basis Over (Under) Revenues Intergovernmental $ 850,000 $ 850,000 $ 46,951 $ - $ 46,951 $ (803,049) Investment income 50,000 50,000 112,892 (4,368) 108,524 58,524 Other 200,000 200,000 15,865 - 15,864 (184,136) Total revenues 1,100,000 1,100,000 175,708 (4,368) 171,339 (928,661) Expenditures Public works - (100,867) 127,884 - 127,884 228,751 Fiscal services - - 1,276 - 1,276 1,276 Capital outlay 33,121,345 32,789,287 8,959,158 (106,992) 8,852,166 (23,937,121) Intergovernmental - 432,925 2,105,813 - 2,105,813 1,672,888 Debt issuance costs - - 139,537 - 139,537 139,537 Total expenditures 33,121,345 33,121,345 11,333,668 (106,992) 11,226,676 (21,894,669) Excess (deficit) of revenues over (under) expenditures (32,021,345) (32,021,345) (11,157,960) 102,624 (11,055,337) 20,966,008 Other financing sources (uses) Issuance of bonds 19,050,000 19,050,000 20,043,865 - 21,667,569 2,617,569 Premiums on bonds issued - - 1,763,241 - 1,763,241 1,763,241 Transfers in 24,489 24,489 - - - (24,489) Transfers out (373,313) (373,313) (628,193) 254,880 (373,313) - Total other financing sources (uses) 18,701,176 18,701,176 21,178,913 254,880 23,057,497 4,356,321 Net change in fund balances (13,320,169) (13,320,169) 10,020,953 357,504 12,002,160 25,322,329 Fund balances - beginning 19,681,610 19,681,610 19,681,609 - 19,681,609 - Fund balances - ending $ 6,361,441 $ 6,361,441 $ 29,702,562 $ 357,504 $ 31,683,769 $ 25,322,329 CITY OF COLLEGE STATION, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Streets Projects Fund For the Fiscal Year Ended September 30, 2016 106 Variance with Actual GAAP Adjustments Actual Budget Final Budget Original Budget Final Budget Basis Budget Basis Basis Over (Under) Revenues Ad valorem taxes $ 13,565,252 $ 13,565,252 $ 13,733,453 $ - $ 13,733,453 $ 168,201 Investment income 20,000 20,000 32,300 (592) 31,708 11,708 Other - - 968 - 968 968 Total revenues 13,585,252 13,585,252 13,766,721 (592) 13,766,129 180,877 Expenditures Principal retirement 8,967,100 8,967,100 8,660,000 - 8,660,000 (307,100) Interest on long-term debt 4,007,493 4,007,493 3,769,711 - 3,769,711 (237,782) Debt issuance costs 50,000 50,000 147,886 - 147,886 97,886 Total expenditures 13,024,593 13,024,593 12,577,597 - 12,577,597 (446,996) Excess (deficit) of revenues over (under) expenditures 560,659 560,659 1,189,124 (592) 1,188,532 627,873 Other financing sources (uses) Issuance of refunding bonds - - 13,915,000 - 13,915,000 13,915,000 Premium on bonds issued - - 2,047,190 - 2,047,190 2,047,190 Payment to refunded bond escrow agent - - (16,087,122) - (16,087,122) (16,087,122) Transfers in 363,101 363,101 915,318 - 915,318 552,217 Total other financing sources (uses) 363,101 363,101 790,386 - 790,386 427,285 Net change in fund balances 923,760 923,760 1,979,510 (592) 1,978,918 1,055,158 Fund balances - beginning 2,814,048 2,814,048 2,814,048 - 2,814,048 - Fund balances - ending $ 3,737,808 $ 3,737,808 $ 4,793,558 $ (592) $ 4,792,966 $ 1,055,158 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, 2016 107 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. 108 Sanitation Northgate Parking Garage Total Nonmajor Enterprise Funds Assets Current assets Cash and cash equivalents $ 1,055,538 $ 1,027,871 $ 2,083,409 Equity in investments 137,098 133,051 270,149 Receivables (net of allow for uncollectible) 1,001,972 64,800 1,066,772 Investments interest receivable 179 174 353 Inventories 38,452 - 38,452 Total current assets 2,233,239 1,225,896 3,459,135 Noncurrent assets Equity in joint venture 14,686,316 - 14,686,316 Loan receivable 3,610,000 - 3,610,000 18,296,316 - 18,296,316 Capital assets Buildings - 5,976,030 5,976,030 Machinery and equipment 5,996,668 700,687 6,697,355 Less accumulated depreciation (2,968,594) (2,745,202) (5,713,796) Construction in progress - 336,388 336,388 Land - 690,750 690,750 Total capital assets 3,028,074 4,958,653 7,986,727 Total noncurrent assets 21,324,390 4,958,653 26,283,043 Total assets 23,557,629 6,184,549 29,742,178 Deferred outflows of resources Deferred charge on refunding - 33,533 33,533 Deferred charge on pensions 673,515 83,649 757,164 Total deferred outflows of resources 673,515 117,182 790,697 Liabilities Current liabilities Accounts payable 217,561 50,674 268,235 Accrued liabilities 120,227 24,897 145,124 Unearned revenue - 118,915 118,915 Compensated absences 9,085 747 9,832 Retainage payable - 29,112 29,112 Payable from restricted assets Accrued interest payable 19,101 4,703 23,804 Certificates of obligation 210,000 - 210,000 General obligation bonds - 443,174 443,174 Total current liabilities 575,974 672,222 1,248,196 Noncurrent liabilities Certificates of obligation 3,400,000 - 3,400,000 General obligation bonds - 641,348 641,348 Compensated absences 110,080 9,057 119,137 Post employment benefits 362,286 37,329 399,615 Net pension obligation 1,284,885 157,270 1,442,155 Total noncurrent liabilities 5,157,251 845,004 6,002,255 Total liabilities 5,733,225 1,517,226 7,250,451 Deferred inflows of resources Deferred charge on pensions 23,343 2,727 26,070 Total deferred inflows of resources 23,343 2,727 26,070 Net position Net investment in capital assets 3,028,074 3,874,131 6,902,205 Unrestricted 15,446,502 907,647 16,354,149 Total net position $ 18,474,576 $ 4,781,778 $ 23,256,354 CITY OF COLLEGE STATION, TEXAS Combining Statement of Net Position Nonmajor Enterprise Funds September 30, 2016 109 Sanitation Northgate Parking Garage Total Nonmajor Enterprise Funds Operating revenues Charges for services $ 8,798,131 $ 948,684 $ 9,746,815 Fines, forfeits, and penalties - 271,189 271,189 Other 36,707 - 36,707 Total operating revenues 8,834,838 1,219,873 10,054,711 Operating expenses Salaries and benefits 2,407,714 346,285 2,753,999 Supplies 385,859 16,886 402,745 Maintenance 675,747 21,877 697,624 Purchased professional services 947,188 150,817 1,098,005 Purchased property services 1,446,860 58,222 1,505,082 Other purchased services 1,374,204 96,834 1,471,038 Contributions 52,716 - 52,716 Depreciation 969,679 208,833 1,178,512 Other 33,644 - 33,644 Total operating expenses 8,293,611 899,754 9,193,365 Operating income 541,227 320,119 861,346 Nonoperating revenues (expenses) Investment income 6,821 7,326 14,147 Gain (Loss) on disposal of assets - 26 26 Earnings in joint venture 1,114,008 - 1,114,008 Interest payments (157,868) (53,519) (211,387) Other, net 19,504 15,899 35,403 Total nonoperating revenues (expenses) 982,465 (30,268) 952,197 Income before capital contributions and transfers 1,523,692 289,851 1,813,543 Capital contributions and transfers Capital contributions 566,975 - 566,975 Transfers in 219,575 198,199 417,774 Transfers out (1,320,092) (77,183) (1,397,275) Total capital contributions and transfers (533,542) 121,016 (412,526) Change in net position 990,150 410,867 1,401,017 Net position - beginning 17,484,426 4,370,911 21,855,337 Net position - ending $ 18,474,576 $ 4,781,778 $ 23,256,354 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, 2016 110 Total Northgate Nonmajor Parking Enterprise Sanitation Garage Funds Cash flows from operating activities: Cash received from customers 8,908,074$ 1,392,649$ 10,300,723$ Cash payments to suppliers for goods and services (5,352,490) (369,280) (5,721,770) Cash payments to employees for services (1,854,427) (264,992) (2,119,419) Customer deposits - (4,200) (4,200) Cash received for reimbursed expenses - - - Cash paid for miscellaneous services - - - Cash received for miscellaneous revenues 19,250 15,635 34,885 Cash received from other funds - - - Net cash provided (used) by operating activities 1,720,407 769,812 2,490,219 Cash flows from noncapital financing activities: Transfers in from other funds 219,575 198,199 417,774 Transfers out to other funds (1,320,092) (77,183) (1,397,275) Net cash provided (used) by noncapital financing activities (1,100,517) 121,016 (979,501) Cash flows from capital and related financing activities: Acquisition and construction of capital assets (547,109) (458,638) (1,005,747) Capital grants and contributions 566,975 - 566,975 Proceeds from sale of assets - - - Principal paid on certificates of obligation and general obligation bonds - (443,174) (443,174) Interest paid on certificates of obligation and general obligation bonds (156,560) (55,103) (211,663) Net cash provided (used) by capital and related financing activities (136,694) (956,915) (1,093,609) Cash flows from investing activities: Purchase of investments (409,062) (419,563) (828,625) Proceeds from sale and maturities of investment securities 308,624 389,807 698,431 Investment income 6,821 7,326 14,147 Net cash provided (used) by investing activities (93,617) (22,430) (116,047) Net increase (decrease) in cash and cash equivalents 389,579 (88,517) 301,062 Cash and cash equivalents, Oct. 1 665,959 1,116,388 1,782,347 Cash and cash equivalents, Sept. 30 1,055,538$ 1,027,871$ 2,083,409$ Reconciliation of operating income to net cash Provided by operating activities: Operating income 541,227$ 320,119$ 861,346$ Adjustment to reconcile operating income to net cash provided (used) by operating activities: Depreciation, bad debt expense, inventory loss 999,269 208,833 1,208,102 Miscellaneous nonoperating revenues 19,250 15,635 34,885 Miscellaneous nonoperating expenses - - - Changes in deferred inflows and outflows (456,566) (47,110) (503,676) Changes in assets and liabilities: Change in accounts receivable 73,236 43,077 116,313 Change in inventory (11,433) - (11,433) Change in prepaid costs - - - Change in accounts payable 1,801 38,625 40,426 Change in due to other funds - - - Change in refundable deposits - (4,200) (4,200) Change in accrued liabilities 16,624 20,321 36,945 Change in deferred revenue - 96,354 96,354 Change in accrued vacation (1,671) 1,726 55 Change in OPEB 10,808 4,206 15,014 Change in net pension obligation 527,862 72,226 600,088 Total adjustments 1,179,180 449,693 1,628,873 Net cash provided (used) by operating activities 1,720,407$ 769,812$ 2,490,219$ CITY OF COLLEGE STATION, TEXAS Combining Statement of Cash Flows Nonmajor Enterprise Funds For the Fiscal Year Ended September 30, 2016 111 COMBINING FINANCIAL STATEMENTS INTERNAL SERVICE FUNDS Employee Benefits Fund – account for self-insurance activity related to administration of the City's health benefits plan. Equipment Replacement Fund – 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 – 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 – account for insurance activity related to all claims filed for liability cases (both injury and property) and property losses incurred for City property. Unemployment Fund – account for self-insurance activity on claims filed under unemployment compensation laws. Utility Customer Service Fund – account for the billing and collection activities related to the City’s electric, water, and sewer utilities and residential and commercial garbage collection. Workers' Compensation Fund – account for self-insurance activity related to administration of the City's workers' compensation plan. 112 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 $ 7,795,785 $ 8,873,863 $ 213,955 $ 1,993,699 $ 384,267 $ 236,688 $ 2,315,407 $ 21,813,664 Equity in investments 1,012,552 1,152,578 27,789 258,951 49,910 30,391 300,736 2,832,907 Receivables (net of allow for uncollectible) - - - - - 15,776 - 15,776 Investments interest receivable 1,322 1,504 36 338 65 40 393 3,698 Inventories - - 90,616 - - - - 90,616 Prepaids - - - - - - 2,500 2,500 Total current assets 8,809,659 10,027,945 332,396 2,252,988 434,242 282,895 2,619,036 24,759,161 Capital assets Buildings - - 786,525 - - - - 786,525 Machinery and equipment - 24,426,309 402,866 - - 759,250 - 25,588,425 Less accumulated depreciation - (15,086,697) (758,328) - - (588,563) - (16,433,588) Total capital assets - 9,339,612 431,063 - - 170,687 - 9,941,362 Total assets 8,809,659 19,367,557 763,459 2,252,988 434,242 453,582 2,619,036 34,700,523 Deferred outflows of resources Deferred charge on pensions 17,277 - 291,913 35,616 - 369,944 35,615 750,365 Total deferred outflows of resources 17,277 - 291,913 35,616 - 369,944 35,615 750,365 Liabilities Current liabilities Accounts payable 280,452 742,342 61,719 574,262 13,385 65,825 2,079 1,740,064 Accrued liabilities 2,081 - 31,873 4,416 - 37,448 4,416 80,234 Compensated absences - - 4,563 - - 3,483 - 8,046 Claims payable 1,717,575 - - 449,197 - - 227,934 2,394,706 Total current liabilities 2,000,108 742,342 98,155 1,027,875 13,385 106,756 234,429 4,223,050 Noncurrent liabilities Compensated absences - - 55,290 - - 42,202 - 97,492 Post employment benefits 12,649 - 158,204 18,244 - 241,754 18,218 449,069 Net pension obligation 34,627 - 558,477 64,949 - 728,052 64,947 1,451,052 Total noncurrent liabilities 47,276 - 771,971 83,193 - 1,012,008 83,165 1,997,613 Total liabilities 2,047,384 742,342 870,126 1,111,068 13,385 1,118,764 317,594 6,220,663 Deferred inflows of resources Unavailable revenue-other 723 - 10,236 1,011 - 14,484 1,011 27,465 Total deferred inflows of resources 723 - 10,236 1,011 - 14,484 1,011 27,465 Net position Net investment in capital assets - 9,339,612 431,063 - - 170,688 - 9,941,363 Unrestricted 6,778,829 9,285,603 (256,053) 1,176,525 420,857 (480,410) 2,336,046 19,261,397 Total net position $ 6,778,829 $ 18,625,215 $ 175,010 $ 1,176,525 $ 420,857 $ (309,722) $ 2,336,046 $ 29,202,760 CITY OF COLLEGE STATION, TEXAS Combining Statement of Net Position Internal Service Funds September 30, 2016 113 Employee Benefits Equipment Replacement Fleet Maintenance Property and Casualty Unemployment Utility Customer Service Workers' Compensation Total Internal Service Funds Operating revenues Charges for services $ - $ 6,436,418 $ 2,133,608 $ - $ - $ 2,176,425 $ - $ 10,746,451 Premiums 10,162,510 - - 999,428 32,200 - 552,037 11,746,175 Other - - 405 77,166 - 50,313 - 127,884 Total operating revenues 10,162,510 6,436,418 2,134,013 1,076,594 32,200 2,226,738 552,037 22,620,510 Operating expenses Salaries and benefits 56,603 - 1,027,589 125,381 - 1,301,387 125,376 2,636,336 Supplies - - 1,048,041 - - 44,381 - 1,092,422 Maintenance - - 20,370 - - 68,284 - 88,654 Purchased professional services 129,208 - 818 13,884 - 346,059 11,000 500,969 Purchased property services - - 16,191 - - 38,586 - 54,777 Other purchased services 2,622 - 57,198 - - 748,436 - 808,256 Claims 8,205,914 - - 819,732 21,854 - 58,919 9,106,419 Administration fees 588,278 - - 149,353 - - 24,948 762,579 Contributions - 1,593,770 - - - - - 1,593,770 Premiums 1,290,658 - - 314,844 - - 145,090 1,750,592 Depreciation - 2,191,239 38,453 - - 27,961 - 2,257,653 Other 361,931 - (5,005) 24,975 - 3,522 - 385,423 Total operating expenses 10,635,214 3,785,009 2,203,655 1,448,169 21,854 2,578,616 365,333 21,037,850 Operating income (472,704) 2,651,409 (69,642) (371,575) 10,346 (351,878) 186,704 1,582,660 Nonoperating revenues (expenses) Investment income 51,550 49,605 571 11,491 2,436 1,614 14,459 131,726 Gain (loss) on disposal of assets - 202,121 - - - - - 202,121 Other, net 9,268 (19,706) 1,640 (33,176) - - - (41,974) Total nonoperating revenues (expenses) 60,818 232,020 2,211 (21,685) 2,436 1,614 14,459 291,873 Income before capital contributions and transfers (411,886) 2,883,429 (67,431) (393,260) 12,782 (350,264) 201,163 1,874,533 Capital contributions and transfers Capital contributions - (26,435) - - - - - (26,435) Transfers in - 271,000 - - - - - 271,000 Transfers out (73,385) - - - - - - (73,385) Total capital contributions and transfers (73,385) 244,565 - - - - - 171,180 Change in net position (485,271) 3,127,994 (67,431) (393,260) 12,782 (350,264) 201,163 2,045,713 Net position - beginning 7,264,100 15,497,221 242,441 1,569,785 408,075 40,542 2,134,883 27,157,047 Net position - ending $ 6,778,829 $ 18,625,215 $ 175,010 $ 1,176,525 $ 420,857 $ (309,722) $ 2,336,046 $ 29,202,760 CITY OF COLLEGE STATION, TEXAS Combining Statement of Revenues, Expenses, and Changes in Net Position Internal Service Funds For the Fiscal Year Ended September 30, 2016 114 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 10,170,122$ 6,436,418$ 2,134,013$ 1,076,594$ 32,200$ 2,277,122$ 552,037$ 22,678,506$ Cash payments to suppliers for goods and services (10,169,898) (1,555,510) (1,253,615) (730,916) (12,789) (1,434,872) (332,118) (15,489,718) Cash payments to employees for services (41,772) - (761,668) (89,723) - (992,206) (89,720) (1,975,089) Customer deposits received - - - - - - - - Cash received for reimbursed expenses - - - - - - - - Cash paid for miscellaneous services - (19,706) - (33,176) - - - (52,882) Cash received for miscellaneous revenues 9,268 - 1,640 - - - - 10,908 Net cash provided (used) by operating activities (32,280) 4,861,202 120,370 222,779 19,411 (149,956) 130,199 5,171,725 Cash flows from noncapital financing activities: Transfers in from other funds - 271,000 - - - - - 271,000 Transfers out to other funds (73,385) - - - - - - (73,385) Net cash provided (used) by noncapital financing activities (73,385) 271,000 - - - - - 197,615 Cash flows from capital and related financing activities: Capital contributions - (26,435) - - - - - (26,435) Acquisition and construction of capital assets - (2,619,951) (32,691) (4,822) - - - (2,657,464) Proceeds from sale of assets - 202,121 - - - - - 202,121 Net cash provided (used) by capital and related financing activities - (2,444,265) (32,691) (4,822) - - - (2,481,778) Cash flows from investing activities: Purchase of investments (3,113,677.29) (3,392,452) (80,586) (783,099) (152,148) (101,410.40) (916,070) (8,539,444) Proceeds from sale and maturities of investment securities 2,901,960 2,898,556 66,668 706,973 139,498 108,311 838,667 7,660,635 Investment income 50,854 48,616 546 11,296 2,400 1,603 14,241 129,556 Net cash provided (used) by investing activities (160,863) (445,280) (13,372) (64,830) (10,250) 8,504 (63,162) (749,253) Net increase (decrease) in cash and cash equivalents (266,528) 2,242,657 74,307 153,127 9,161 (141,452) 67,037 2,138,309 Cash and cash equivalents, Oct. 1 8,062,313 6,631,206 139,648 1,840,572 375,106 378,140 2,248,370 19,675,355 Cash and cash equivalents, Sept. 30 7,795,785$ 8,873,863$ 213,955$ 1,993,699$ 384,267$ 236,688$ 2,315,407$ 21,813,664$ Reconciliation of operating income to net cash provided by operating activities: Operating income (472,704)$ 2,651,409$ (69,642)$ (371,575)$ 10,346$ (351,878)$ 186,704$ 1,582,660$ Adjustment to reconcile operating income to net cash provided (used) by operating activities: Depreciation, bad debt expense, inventory loss - 2,191,239 38,453 - - 27,961 - 2,257,653 Miscellaneous nonoperating revenues 9,268 - 1,640 - - - - 10,908 Miscellaneous nonoperating expenses - (19,706) - (33,176) - - - (52,882) Changes in deferred inflows and outflows (11,192) - (201,862) (26,161) - (246,080) (26,160) (511,455) Changes in assets and liabilities:- Change in accounts receivable 7,612 - - - - 50,384 - 57,996 Change in inventory - - 103,864 - - - - 103,864 Change in prepaid costs - - - - - - - - Change in accounts payable 39,124 38,260 (18,004) 511,148 9,065 60,476 - 640,069 Change in due to other funds - - - - - - - - Change in claims payable 380,780 - - 106,885 - - (66,001) 421,664 Change in accrued liabilities 376 - 5,985 1,866 - (129) 1,866 9,964 Change in accrued vacation - - (806) - - (8,548) - (9,354) Change in OPEB 795 - 14,350 1,860 - 17,494 1,859 36,358 Change in net pension obligation 13,661 - 246,392 31,932 - 300,364 31,931 624,280 Total adjustments 440,424 2,209,793 190,012 594,354 9,065 201,922 (56,505) 3,589,065 Net cash provided (used) by operating activities (32,280)$ 4,861,202$ 120,370$ 222,779$ 19,411$ (149,956)$ 130,199$ 5,171,725$ CITY OF COLLEGE STATION, TEXAS Combining Statement of Cash Flows Internal Service Funds For the Fiscal Year Ended September 30, 2016 115 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 117-123) 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 124-131) 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 132-136) 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 137-142) 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. 116 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Governmental activities Net investment in capital assets 113,750,039$ 114,935,845$ 143,530,290$ 153,397,767$ 145,546,799$ 149,875,513$ 153,214,549$ 125,012,201$ 167,101,930$ 176,171,787$ Restricted 5,089,422 6,357,013 8,077,876 10,201,722 25,565,107 13,606,487 16,751,846 15,608,417 55,374,914 48,362,842 Unrestricted 45,967,901 59,703,654 37,712,097 37,359,741 27,695,418 39,065,396 40,964,678 76,502,627 7,685,763 13,352,352 Total governmental activities net position 164,807,362$ 180,996,512$ 189,320,263$ 200,959,230$ 198,807,324$ 202,547,396$ 210,931,073$ 217,123,245$ 230,162,607$ 237,886,981$ Business-type activities Net investment in capital assets 147,043,092$ 145,066,758$ 147,627,129$ 161,365,075$ 175,059,669$ 179,123,899$ 189,315,182$ 165,180,775$ 200,468,509$ 209,331,986$ Restricted 3,056,356 1,590,977 3,119,691 1,588,631 1,588,631 1,580,992 1,580,992 1,580,992 1,581,186 1,581,501 Unrestricted 37,474,945 43,957,844 47,397,414 38,818,705 35,213,377 38,597,823 36,847,830 61,775,551 47,781,620 75,737,790 Total business-type activities net position 187,574,393$ 190,615,579$ 198,144,234$ 201,772,411$ 211,861,677$ 219,302,714$ 227,744,004$ 228,537,318$ 249,831,315$ 286,651,277$ Primary government Net investment in capital assets 260,793,131$ 260,002,603$ 291,157,419$ 314,762,842$ 320,606,468$ 328,999,412$ 342,529,731$ 290,192,976$ 367,570,439$ 385,503,773$ Restricted 8,145,778 7,947,990 11,197,567 11,790,353 27,153,738 15,187,479 18,332,838 17,189,409 56,956,100 49,944,343 Unrestricted 83,442,846 103,661,498 85,109,511 76,178,446 62,908,795 77,663,219 77,812,508 138,278,178 55,467,383 89,090,142 Total primary government net position 352,381,755$ 371,612,091$ 387,464,497$ 402,731,641$ 410,669,001$ 421,850,110$ 438,675,077$ 445,660,563$ 479,993,922$ 524,538,258$ Source: City of College Station CITY OF COLLEGE STATION, TEXAS Net Position by Component Last Ten Fiscal Years (accrual basis of accounting) Fiscal Year (unaudited)117 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Expenses Governmental activities: Police 12,299,698$ 13,395,874$ 13,945,079$ 16,063,347$ 15,082,452$ 16,696,975$ 16,831,233$ 17,768,724$ 18,601,237$ 20,858,704$ Fire 9,472,331 11,359,260 11,778,585 13,301,029 11,749,054 13,706,222 13,748,434 14,245,690 15,095,073 17,663,825 Public works 6,620,846 9,467,081 16,804,436 17,026,827 20,629,662 13,717,564 15,371,773 21,348,088 18,793,401 21,028,954 Parks and recreation 8,235,984 9,391,993 10,136,521 11,202,863 10,146,043 9,638,581 8,983,919 9,197,308 9,884,737 11,161,966 Library 912,527 993,102 1,052,838 1,103,864 1,130,433 1,142,580 1,064,293 1,149,616 1,213,820 1,177,291 Planning and development services 1,603,963 1,910,359 2,823,296 2,952,177 3,364,877 4,912,517 4,334,608 5,012,992 3,225,321 3,440,211 Information technology 2,689,720 2,749,327 3,471,714 5,048,720 4,165,064 4,268,524 4,565,385 4,663,939 4,416,190 4,907,473 Fiscal services 2,442,439 2,977,362 3,821,996 4,127,990 3,384,388 3,313,726 3,263,269 3,419,923 3,594,382 4,146,833 General government 7,654,393 8,551,304 8,631,908 11,534,705 9,455,960 8,348,922 9,167,476 9,602,139 10,194,285 16,152,324 Capital projects - 719,391 476,462 256,177 648,589 819,296 733,974 731,621 - - Interest on long-term debt 4,291,022 3,860,801 4,135,146 4,111,523 4,079,379 3,273,938 2,949,240 3,962,347 3,943,972 3,425,529 Unallocated depreciation 6,026,372 667,890 789,074 1,047,906 1,130,283 1,149,609 1,146,119 1,161,675 1,235,340 1,299,794 Total governmental activities expense 62,249,295 66,043,744 77,867,055 87,777,128 84,966,184 80,988,454 82,159,723 92,264,062 90,197,758 105,262,904 Business-type activities: Electric 60,242,408 70,485,984 77,441,351 88,685,699 93,277,853 87,221,859 88,438,115 98,269,576 79,828,415 73,880,232 Water 8,302,863 8,706,415 9,287,343 10,190,159 9,960,837 11,132,787 11,662,862 11,517,915 13,082,761 13,062,768 Wastewater 8,179,813 9,159,176 9,829,813 10,604,983 10,114,867 10,952,853 11,370,918 11,205,770 12,437,020 11,995,045 Sanitation 5,916,431 6,244,639 5,776,002 6,527,724 6,558,278 7,825,491 6,301,053 7,497,493 7,786,244 8,216,958 Northgate parking 591,980 668,237 909,167 1,019,393 944,125 924,532 1,053,839 1,051,901 953,681 946,325 Total business-type activities expense 83,233,495 95,264,451 103,243,676 117,027,958 120,855,960 118,057,522 118,826,787 129,542,655 114,088,121 108,101,328 Total primary government expense 145,482,790$ 161,308,195$ 181,110,731$ 204,805,086$ 205,822,144$ 199,045,976$ 200,986,510$ 221,806,717$ 204,285,879$ 213,364,232$ Program revenues Governmental activities: Charges for services: Fines, forfeits and penalties 3,618,236$ 3,798,313$ 4,491,960$ 4,500,447$ 4,120,077$ 3,896,477$ 3,462,197$ 3,231,069$ 2,900,197$ 3,518,538$ Licenses and permits 1,306,690 1,154,902 1,007,151 964,344 1,091,983 1,496,989 1,240,300 1,438,082 1,500,777 2,132,802 Public works 1,199,565 1,255,525 1,793,174 1,895,263 2,910,293 2,480,140 2,489,828 2,437,986 2,254,382 2,250,367 Parks and recreation 1,420,284 1,911,789 1,838,810 1,722,840 2,007,032 1,909,008 1,773,554 1,608,329 1,652,014 1,713,907 Other activities 3,210,563 3,548,309 4,494,627 3,378,603 2,516,446 2,506,187 2,903,460 3,532,847 5,832,527 3,260,482 Operating grants and contributions 2,038,535 1,735,170 1,896,623 1,694,228 1,875,849 2,766,187 1,753,970 3,234,317 2,995,401 2,943,080 Capital grants and contributions 5,271,090 3,055,501 2,644,629 19,587,921 3,964,442 4,216,095 7,016,449 7,404,520 3,542,528 14,549,415 Total governmental activities program revenues 18,064,963 16,459,509 18,166,974 33,743,646 18,486,122 19,271,083 20,639,758 22,887,150 20,677,826 30,368,591 Business-type activities: Charges for services: Electric sales 67,462,075 76,787,412 82,904,777 91,162,890 101,617,743 96,787,784 95,737,007 97,814,129 101,432,340 101,753,428 Water sales 10,060,398 12,025,086 17,312,431 12,745,173 17,253,787 15,274,883 15,775,334 13,848,402 15,069,720 15,503,526 Sewer service 10,590,688 11,184,565 11,655,528 11,522,025 13,099,783 13,697,532 14,566,975 14,575,907 13,864,099 15,547,324 Garbage collection fees 7,512,194 9,628,798 7,988,795 7,299,273 7,143,536 7,204,013 7,205,029 8,014,628 8,845,145 8,854,342 Parking garage fees 620,124 673,818 990,735 1,140,833 1,189,443 1,149,277 1,234,799 1,298,034 1,435,290 1,235,798 Operating grants and contributions - - 17,792 - 3,746 9,718 982 291,366 668,322 1,114,008 Capital grants and contributions 4,041,105 5,349,125 6,846,033 11,703,025 3,857,585 6,890,916 5,345,176 7,309,230 9,596,813 14,192,226 Total business-type activities program revenues 100,286,584 115,648,804 127,716,091 135,573,219 144,165,623 141,014,123 139,865,302 143,151,696 150,911,729 158,200,652 Total primary government program revenues 118,351,547$ 132,108,313$ 145,883,065$ 169,316,865$ 162,651,745$ 160,285,206$ 160,505,060$ 166,038,846$ 171,589,555$ 188,569,243$ Source: City of College Station CITY OF COLLEGE STATION, TEXAS Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting) Fiscal Year (unaudited)118 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Net (expense)/revenue Governmental activities (44,184,332)$ (49,584,235)$ (59,700,081)$ (54,033,482)$ (66,480,062)$ (61,717,371)$ (61,519,965)$ (69,376,912)$ (69,519,932)$ (74,894,314)$ Business-type activities 17,053,089 20,384,353 24,472,415 18,545,261 23,309,663 22,956,601 21,038,515 13,609,041 36,823,608 50,099,324 Total primary government net expense (27,131,243)$ (29,199,882)$ (35,227,666)$ (35,488,221)$ (43,170,399)$ (38,760,770)$ (40,481,450)$ (55,767,871)$ (32,696,324)$ (24,794,990)$ General revenues and other changes in net assets Governmental activities: Taxes Property taxes 18,573,309$ 20,670,112$ 22,769,699$ 24,745,344$ 24,333,373$ 24,978,388$ 26,451,943$ 27,349,234$ 30,936,581$ 32,706,952$ Sales and mixed beverage taxes 18,449,731 20,241,973 19,873,213 19,751,004 20,717,598 21,878,057 23,506,772 25,141,825 27,302,178 27,163,480 Franchise taxes 1,931,196 2,090,779 2,217,618 2,210,902 2,153,827 2,171,277 2,209,091 2,407,344 2,653,641 3,330,088 Hotel taxes 2,980,250 3,585,512 3,574,649 3,387,041 3,558,042 3,643,887 4,393,867 5,127,808 5,336,661 5,277,314 Unrestricted investment earnings 4,512,575 3,385,844 1,413,431 265,424 368,868 283,648 252,308 195,863 379,537 576,209 Gain (Loss) on sale of capital assets - - - (24,596) - - 1,827,783 6,818,583 (75,177) Transfers 10,090,589 7,559,165 12,778,642 15,337,330 13,562,095 12,502,186 12,039,798 12,935,733 13,037,208 13,639,821 Total governmental activities 56,537,650 57,533,385 62,627,252 65,672,449 64,693,803 65,457,443 68,853,779 74,985,590 86,464,389 82,618,687 Business-type activities: Unrestricted investment earnings 1,932,624 1,330,785 654,882 420,236 341,698 316,035 174,170 120,006 187,322 360,459 Transfers (10,090,589) (10,433,954) (12,778,642) (15,337,330) (13,562,095) (12,502,186) (12,039,798) (12,935,733) (13,037,208) (13,639,821) Total business-type activities (8,157,965) (9,103,169) (12,123,760) (14,917,094) (13,220,397) (12,186,151) (11,865,628) (12,815,727) (12,849,886) (13,279,362) Total primary government 48,379,685$ 48,430,216$ 50,503,492$ 50,755,355$ 51,473,406$ 53,271,292$ 56,988,151$ 62,169,863$ 73,614,503$ 69,339,325$ Change in net position Governmental activities 12,353,318$ 7,949,150$ 2,927,171$ 11,638,967$ (1,786,259)$ 3,740,072$ 7,333,814$ 5,608,678$ 16,944,457$ 7,724,373$ Business-type activities 8,895,124 11,281,184 12,348,655 3,628,167 10,089,266 10,770,450 9,172,887 793,314 23,973,722 36,819,962 Total primary government 21,248,442$ 19,230,334$ 15,275,826$ 15,267,134$ 8,303,007$ 14,510,522$ 16,506,701$ 6,401,992$ 40,918,179$ 44,544,335$ Note: The City of College Station adopted GASB Statement 34 in fiscal year 2003. Source: City of College Station CITY OF COLLEGE STATION, TEXAS Changes in Net Position - continued Last Ten Fiscal Years (accrual basis of accounting) Fiscal Year (unaudited)119 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Function/Program Governmental activities: Police 3,713,866$ 4,533,697$ 5,004,712$ 5,161,486$ 4,596,713$ 4,174,931$ 3,650,964$ 3,498,374$ 663,419$ 507,263$ Fire 1,400,464 1,137,759 3,551,620 2,199,375 1,952,851 1,936,311 1,948,961 1,777,507 2,259,979 1,980,844 Public works 6,470,655 4,312,571 4,445,595 15,313,779 5,796,384 5,609,036 8,711,394 8,578,862 4,798,615 2,250,367 Parks and recreation 1,420,284 1,932,001 2,117,227 3,816,773 3,330,986 3,196,969 2,576,020 2,934,766 3,103,886 1,713,907 Library - - - - - 13,200 - - - - Planning and development services 1,306,690 1,357,037 1,051,943 1,075,342 1,296,213 1,650,017 1,493,021 1,730,441 1,885,563 2,579,587 Information technology - - - - 15,500 - - - 72 8,835 Fiscal services 409,100 684,666 38,377 100,495 215,626 542,689 666,103 1,028,531 2,956,304 3,572,710 General government 3,343,904 2,501,778 1,957,500 5,124,710 1,281,849 2,095,173 1,593,295 3,338,669 5,009,988 262,583 Capital improvement program - - - 951,686 - 52,757 - - - - Subtotal governmental activities 18,064,963 16,459,509 18,166,974 33,743,646 18,486,122 19,271,083 20,639,758 22,887,150 20,677,826 12,876,096 Business-type activities: Electric 69,033,816 77,419,441 84,552,573 92,530,434 102,516,252 98,200,411 96,283,238 98,872,262 105,438,676 101,753,428 Water 11,314,888 14,115,391 19,065,662 17,118,922 18,710,635 16,905,503 19,167,542 15,854,663 17,157,749 15,503,526 Wastewater 11,805,562 13,811,356 15,100,534 15,208,551 14,584,557 15,844,190 15,946,613 17,072,780 15,871,321 15,547,324 Sanitation 7,512,194 9,628,798 8,006,587 9,574,489 7,147,282 8,914,742 7,233,110 10,053,957 10,985,994 8,854,342 Northgate parking 620,124 673,818 990,735 1,140,833 1,206,897 1,149,277 1,234,799 1,298,034 1,457,989 1,235,798 Subtotal business-type activities 100,286,584 115,648,804 127,716,091 135,573,229 144,165,623 141,014,123 139,865,302 143,151,696 150,911,729 142,894,418 Total primary government 118,351,547$ 132,108,313$ 145,883,065$ 169,316,875$ 162,651,745$ 160,285,206$ 160,505,060$ 166,038,846$ 171,589,555$ 155,770,514$ Source: City of College Station CITY OF COLLEGE STATION, TEXAS Program Revenues by Function/Program Last Ten Fiscal Years (accrual basis of accounting) Fiscal Year (unaudited)120 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 General fund Nonspendable -$ -$ 62,390$ 70,516$ 58,548$ -$ 59,426$ 64,594$ 63,679$ 71,318$ Restricted - - 95,220 849,622 925,798 868,799 266,573 - - - Assigned - - 1,663,400 1,794,416 537,586 436,979 972,632 1,457,390 2,433,744 2,171,129 Unassigned - - 7,557,419 11,101,327 12,871,125 15,186,915 14,626,901 18,722,265 19,925,641 16,890,755 Reserved 1,108,449 2,305,476 - - - - - - - - Unreserved 11,824,140 9,679,913 - - - - - - - - Total general fund 12,932,589$ 11,985,389$ 9,378,429$ 13,815,881$ 14,393,057$ 16,492,693$ 15,925,532$ 20,244,249$ 22,423,064$ 19,133,202$ All other governmental funds Nonspendable -$ -$ 859,654$ 8,235,642$ 7,890,137$ 6,943,250$ 6,667,812$ 6,485,508$ 6,244,189$ 5,989,904$ Restricted - - 39,375,368 54,421,910 27,404,127 35,688,123 39,327,653 58,993,882 55,139,903 45,521,097 Committed - - 2,627,403 2,764,227 3,149,243 3,618,354 4,008,439 4,130,069 14,792,873 14,050,264 Assigned - - 609,113 - - - - - - 31,183,615 Unassigned - - 545,024 - - - - - - - Reserved 46,372,274 48,819,538 - - - - - - - - Unreserved, reported in: Special revenue funds 10,148,840 11,526,009 - - - - - - - - Capital projects funds - - - - - - - - - - Total all other governmental funds 56,521,114$ 60,345,547$ 44,016,562$ 65,421,779$ 38,443,507$ 46,249,727$ 50,003,904$ 69,609,459$ 76,176,965$ 96,744,880$ Note: The City implemented GASB Statement 54 in 2009; schedules presenting governmental fund balance reclassifications begin in that year. Source: City of College Station CITY OF COLLEGE STATION, TEXAS Fund Balances, Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal Year (unaudited)121 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Revenues Taxes 41,934,486$ 46,588,376$ 48,435,179$ 49,901,803$ 50,762,840$ 52,671,608$ 55,652,419$ 59,018,199$ 65,141,780$ 68,129,771$ Licenses and permits 1,191,105 1,154,902 1,007,151 964,344 1,091,983 1,496,989 1,240,300 1,438,082 1,500,777 2,132,802 Intergovernmental 2,038,535 1,707,957 1,896,623 5,022,822 2,143,573 2,759,219 1,749,805 3,234,317 2,734,763 2,998,133 Charges for services 3,339,352 3,790,147 3,543,064 6,042,105 6,113,497 5,616,379 5,918,397 6,236,531 6,318,722 6,568,428 Fines, forfeits and penalties 3,256,488 3,798,313 4,491,960 4,500,447 4,120,077 3,896,477 3,462,197 3,231,069 2,900,196 3,518,538 Special assessments 1,199,565 1,255,525 1,793,174 - - - - - - - Investment income 3,864,797 2,886,636 1,125,382 206,648 368,868 283,648 252,308 195,863 379,540 576,209 Rents and royalties 261,225 279,004 769,150 749,635 589,528 852,738 753,401 639,267 136,228 187,328 Contributions 31,605 27,213 26,997 605,953 825,532 1,244,973 799,048 1,263,644 1,445,953 1,953,045 Reimbursed expenditures 479,675 46,038 413,751 - - - - - - - Other revenues 738,415 1,046,431 403,548 267,695 730,747 426,218 312,473 674,439 3,386,931 486,037 Total revenues 58,335,248 62,580,542 63,905,979 68,261,452 66,746,645 69,248,249 70,140,348 75,931,411 83,944,890 86,550,291 Expenditures Police 12,556,678 13,219,117 14,107,740 13,816,620 14,931,212 15,521,284 16,550,111 17,093,860 18,547,794 20,184,487 Fire 9,622,195 11,251,400 11,754,088 11,418,948 11,444,702 12,578,396 13,297,527 13,585,022 14,881,983 16,916,819 Public works 7,440,854 7,182,443 7,920,003 7,123,885 6,677,986 7,343,092 7,397,942 8,632,149 10,272,535 12,459,544 Parks and recreation 8,167,857 9,071,198 9,355,301 8,930,388 9,388,765 8,131,413 7,883,904 7,712,597 8,547,083 9,684,568 Library 912,527 993,102 1,119,771 1,080,030 1,061,581 1,072,551 994,476 1,078,851 1,138,568 1,098,326 Planning and development services 2,008,901 2,281,747 2,871,341 2,568,464 3,327,495 4,698,749 4,268,854 4,933,780 3,246,431 3,352,961 Information systems 3,070,524 3,366,764 3,299,105 3,887,102 3,902,082 3,844,107 4,271,209 4,214,958 4,112,987 4,491,009 Fiscal services 3,013,548 3,573,686 3,836,786 3,635,009 3,353,387 3,106,265 3,205,204 3,260,242 3,568,357 3,986,352 General government 4,699,159 7,319,662 5,435,355 7,401,157 6,438,313 4,102,550 3,825,760 5,108,448 5,916,111 6,748,354 Capital improvement projects - 715,707 476,462 132,880 648,589 788,032 733,974 731,621 - - Contributions 1,855,961 2,151,592 2,489,562 2,266,558 2,063,489 2,435,820 2,800,159 3,281,991 3,611,760 4,047,885 Reimbursed administrative (3,305,040) (3,772,362) - - - - - - - - Claims - - - 1,600,000 - - - - - - Community development block grant 215,707 - - - - - - - - - Home grant 323,811 - - - - - - - - - Other expenditures 147,860 204,338 487,163 438,757 750,135 1,380,837 1,964,156 679,772 222,057 5,895 Capital outlay 14,213,574 19,538,322 31,931,401 9,765,151 11,501,926 14,341,717 8,802,719 12,636,334 9,654,509 13,783,130 CITY OF COLLEGE STATION, TEXAS Changes in Fund Balances, Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal Year (unaudited)122 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Debt service Principal 7,820,000 8,530,000 7,935,000 8,050,000 8,085,412 8,120,000 8,245,000 8,650,000 9,110,000 8,660,000 Interest 4,212,245 3,892,490 4,114,356 4,133,633 3,698,324 3,696,245 3,747,520 3,707,799 4,220,656 3,769,711 Issuance costs - - - - - - 154,660 39,719 7,862 311,975 Fiscal charges 527,806 70,796 46,551 227,765 384,196 127,671 - - - - Intergovernmental 342,630 881,604 745,908 - 924,941 294,103 301,061 489,817 151,289 2,105,813 Total expenditures 77,846,797 90,471,606 107,925,893 86,476,347 88,582,535 91,582,832 88,444,236 95,836,960 97,209,982 111,606,829 Deficiency of revenues under expenditures (19,511,549) (27,891,064) (44,019,914) (18,214,895) (21,835,890) (22,334,583) (18,303,888) (19,905,549) (13,265,092) (25,056,538) Other financing sources (uses) Proceeds from long-term debt 7,890,000 19,970,000 9,815,000 20,685,000 1,977,134 11,727,994 14,505,000 31,895,000 - 26,735,000 Proceeds from refunding bonds 10,255,000 - - 4,265,000 11,250,000 - - - - 13,915,000 Payment to bond escrow agent (10,451,378) - - (4,283,647) (12,322,570) - - - - (16,087,122) Advance Refunding - - - - - (11,432,308) (6,054,452) (9,755,695) - - Premium on bonds issued 373,648 - - 75,183 1,172,234 1,132,812 951,174 3,624,222 - 4,329,506 Sale of capital assets 318,103 10,981 505,606 5,615 8,690 - - 4,582,111 8,974,205 - Transfers in 15,054,935 13,828,414 22,680,922 16,054,544 19,382,145 22,313,561 18,629,471 20,798,696 27,852,930 21,098,702 Transfers out (2,021,178) (3,041,098) (8,494,139) (673,081) (7,783,625) (9,385,160) (6,540,298) (7,314,513) (14,815,722) (7,656,495) Total other financing sources 21,419,130 30,768,297 24,507,389 36,128,614 13,684,008 14,356,899 21,490,895 43,829,821 22,011,413 42,334,591 Net change in fund balances 1,907,581$ 2,877,233$ (19,512,525)$ 17,913,719$ (8,151,882)$ (7,977,684)$ 3,187,007$ 23,924,272$ 8,746,321$ 17,278,053$ Debt services as a percentage of noncapital expenditures 18.9%17.5%15.9%15.9%15.3%15.3%15.1%14.9%15.2%12.7% Source: City of College Station CITY OF COLLEGE STATION, TEXAS Changes in Fund Balances, Governmental Funds - continued Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal Year (unaudited)123 Fiscal Year Property Sales Hotel Franchise Mixed Drink Total 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 2014 26,341,222 24,565,649 5,127,808 2,407,344 576,176 59,018,199 2015 29,849,300 26,687,963 5,336,661 2,653,641 614,215 65,141,780 2016 32,358,889 27,163,480 5,277,314 2,680,332 649,756 68,129,771 Change 2007-2016 74.2%50.3%77.1%38.8%74.8%62.5% Notes: Source: City of College Station CITY OF COLLEGE STATION, TEXAS Tax Revenue by Source, Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) Property taxes include general fund, debt service fund, Northgate TIF (2008-2009) and Wolf Pen Creek TIF (2007-2010), Medical District TIRZ (2013-2016). (unaudited)124 Taxable Assessed Commercial Personal, Inventory Value as a Residential and Industrial and Other Less Exemptions Less TIF (a)Total Taxable Total Direct Estimated Actual Percentage of Fiscal Year Property Property Property and Abatements Captured Value Assessed Value Tax Rate Taxable Value Actual Taxable Value 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% 2014 4,713,785,311 1,350,665,951 1,323,614,835 1,156,947,087 17,534,345 6,213,584,665 0.425958 6,213,584,665 100.00% 2015 5,408,910,135 1,539,037,597 939,669,648 1,233,016,546 42,671,760 6,611,929,074 0.452500 6,611,929,074 100.00% 2016 5,904,997,312$ 1,546,479,664$ 1,017,433,729$ 1,308,606,612$ 40,305,770$ 7,119,998,323$ 0.452500 7,119,998,323$ 100.00% Notes: Assessed value is 100% of the estimated actual value. (a) Tax Increment Financing district (TIF) Source: Brazos County Appraisal District CITY OF COLLEGE STATION, TEXAS Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years (unaudited)125 Effective General Total College Fiscal Tax Basic Obligation Direct Station Brazos Year Rate (used)Rate Debt Service Rate ISD County 2007 No 0.191000 0.248400 0.439400 1.480000 0.455000 2008 No 0.191000 0.248400 0.439400 1.241050 0.465000 2009 No 0.193352 0.246048 0.439400 1.221100 0.480000 2010 No 0.209967 0.229433 0.439400 1.253413 0.480000 2011 Yes 0.227349 0.220194 0.447543 1.309933 0.485600 2012 Yes 0.236459 0.201536 0.437995 1.335033 0.485000 2013 Yes 0.235052 0.195635 0.430687 1.335033 0.485000 2014 Yes 0.232905 0.193053 0.425958 1.320000 0.487500 2015 Yes 0.259447 0.193053 0.452500 1.380000 0.485000 2016 No 0.259448 0.193052 0.452500 1.362900 0.485000 Notes: Source: Brazos County Appraisal District 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. 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. The upper limit of the tax rate is set at $2.50/$100 of assessed value for each jurisdiction by State Statute. This limit is for both operations and debt service combined. CITY OF COLLEGE STATION, TEXAS Direct and Overlapping Property Tax Rates Last Ten Fiscal Years (rate per $100 of assessed value) City Direct Rates Overlapping Rates (unaudited) 126 Percent of Percent of of Total City of Total City Taxable Taxable Taxable Taxable 2016 Assessed Assessed 2007 Assessed Assessed Taxpayer Value Rank Value Value Rank Value CCP College Station I, LLC 61,727,000$ 1 0.77% College Station Hospital, LP 57,451,650 2 0.72%60,838,090$ 1 1.33% Post Oak Mall - College Station LLC 57,260,420 3 0.72% Woodridge College Station Phase II, LLC 54,965,810 4 0.69% Woodridge College Station I, LLC 52,800,680 5 0.66% Midway Hospitality, LP 51,395,920 6 0.64% SHP - The Callaway House, LP 50,726,063 7 0.63% Culpepper Family, LP 47,459,390 8 0.59% SW Meadows Point, LP 45,867,137 9 0.57% Jamespoint Management Co 44,256,149 10 0.55% C.B.L. & Associates 54,557,025 2 1.19% Alkosser, David &41,844,460 3 0.92% ACC Op (Callaway Villas) LP 30,384,640 4 0.66% University Heights - CS Acquisitions LP Etal 30,347,570 5 0.66% SCI Gateway at CS Fund LLC Etal 28,956,280 6 0.63% Verizon Communications, Inc.28,144,250 7 0.62% Walmart 26,998,760 8 0.59% Universal Computer Services, Inc.25,767,199 9 0.56% Commonwealth Austin CH LP 25,710,420 10 0.56% Total 523,910,219$ 6.56%353,548,694$ 7.74% Source: Brazos County Appraisal District CITY OF COLLEGE STATION, TEXAS Principal Property Taxpayers Current Year and Nine Years Ago 2016 2007 (unaudited)127 Fiscal Year Taxes Levied Collections Ended for the Percentage in Subsequent Percentage Sept 30 Fiscal Year Amount of Levy Years Amount of Levy 2007 17,818,419$ 17,697,220$ 99.32%112,287$ 17,809,507$ 99.95% 2008 19,973,882 19,773,036 98.99%189,860 19,962,896 99.94% 2009 22,076,134 21,795,748 98.73%268,165 22,063,913 99.94% 2010 23,623,086 23,435,105 99.20%171,562 23,606,667 99.93% 2011 24,323,279 24,136,088 99.23%170,192 24,306,280 99.93% 2012 24,979,685 24,762,625 99.13%193,717 24,956,342 99.91% 2013 25,503,096 25,326,360 99.31%149,325 25,475,685 99.89% 2014 26,407,915 26,213,476 99.26%148,428 26,361,904 99.83% 2015 29,803,314 29,414,950 98.70%225,662 29,640,612 99.45% 2016 32,065,351 31,727,823 98.95%- 31,727,823 98.95% Sources: City of College Station and Brazos County Tax Office CITY OF COLLEGE STATION, TEXAS Property Tax Levies and Collections Last Ten Fiscal Years Collected within the Fiscal Year of the Levy Total Collections to Date (unaudited)128 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Utilities 19,336$ 22,403$ 25,483$ 26,442$ 27,724$ 32,048$ 29,102$ 29,956$ 29,451$ 15,820$ Construction 13,918 15,818 15,768 10,617 10,070 10,900 12,743 12,053 14,804 15,126 Manufacturing 13,066 13,200 16,391 12,221 9,620 6,823 7,433 7,941 9,013 11,962 Wholesale Trade 17,482 8,759 13,761 9,856 10,770 19,556 23,573 26,941 23,240 30,976 Retail Trade 608,940 686,271 693,673 653,561 678,041 699,715 738,897 777,632 829,563 844,066 Information 14,082 12,148 15,427 15,654 16,907 16,984 18,261 21,546 28,076 31,483 Finance and Insurance 216 541 752 706 840 1,043 1,044 1,336 1,702 2,238 Real Estate and Rental/Leasing 15,679 16,249 18,326 9,288 9,456 9,314 9,785 11,411 13,781 14,260 Professional, Scientific and Tech Services 9,530 11,074 26,234 25,694 13,142 12,901 12,716 14,518 13,942 15,320 Administrative, Support, Waste Mgmt, Remediation 16,462 15,054 18,362 17,610 16,831 17,381 19,645 21,080 23,538 24,743 Educational Services *29,592 32,502 27,645 35,351 34,952 37,434 43,135 43,173 40,762 41,409 Health Care and Social Assistance 2,873 4,051 2,888 2,301 2,049 1,920 2,116 3,103 3,933 3,467 Arts, Entertainment and Recreation 6,949 7,399 9,168 8,671 8,470 9,325 9,488 11,070 14,400 15,927 Accommodation and Food Services 169,900 185,723 205,967 204,731 208,597 217,445 238,186 256,716 293,803 312,834 Other Services 17,069 14,539 15,782 15,338 15,890 16,274 18,594 22,322 25,305 25,339 Total 955,094$ 1,045,731$ 1,105,627$ 1,048,041$ 1,063,359$ 1,109,063$ 1,184,718$ 1,260,798$ 1,365,313$ 1,404,970$ City direct sales tax rate 1.50%1.50%1.50%1.50%1.50%1.50%1.50%1.50%1.50%1.50% Notes: * The 2006 amount for Educational Services was corrected from 2,209,091 to 29,592. Source: Texas State Comptroller of Public Accounts 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. CITY OF COLLEGE STATION, TEXAS Taxable Sales by Category Last Ten Calendar Years (in thousands of dollars) (unaudited)129 City Brazos State of Fiscal Year Direct Rate County Texas 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% 2014 1.50%0.50%6.25% 2015 1.50%0.50%6.25% 2016 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 (unaudited) 130 Number Percentage Tax Percentage Number Percentage Tax Percentage of Outlets of Total Liability of Total of Outlets of Total Liability of Total Retail trade 1,207 58.45%11,501$ 80.62%1,382 51.16%17,354$ 82.35% Services 214 10.36%354 2.48%334 12.35%702 3.34% Wholesale trade 58 2.81%430 3.01%89 3.29%465 2.21% Utilities, transportation, communications 19 0.92%291 2.04%19 0.70%250 1.19% Manufacturing 60 2.91%210 1.47%97 3.59%179 0.85% Construction 101 4.89%209 1.48%131 4.85%227 1.08% Agriculture, forestry, and fishing 6 0.29%2 0.01%8 0.30%- 0.00% Finance, insurance, real estate 53 2.57%239 1.68%58 2.15%247 1.17% All other outlets 347 16.80%1,028 7.22%584 21.62%1,651 7.84% Total 2,065 100.00%14,265$ 100.01%2,702 100.00%21,073$ 100.01% Notes: Tax liability information is not available on a fiscal-year basis. Source: Texas State Comptroller of Public Accounts at https://mycpa.cpa.state.tx.us/allocation/qtrsalesreportbyresults Calendar Year 2006 Calendar Year 2015 CITY OF COLLEGE STATION, TEXAS Sales Tax Revenue Payers by Industry Calendar Years 2006 and 2015 (dollars are in thousands) 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. (unaudited)131 General Utility Utility Revenue Utility Revenue Total Percentage Fiscal Obligation Certificates of Revenue Certificates General Certificates General Primary of Personal Per Year Bonds Obligation Bonds of Obligation Obligation Bonds of Obligation Obligation Bonds Government Income Capita 2007 55,720,000$ 33,500,000$ 105,215,000$ -$ -$ 8,240,000$ -$ 202,675,000$ 16.52%2,409 2008 60,695,000 39,965,000 99,560,000 - - 23,820,000 - 224,040,000 17.12%2,576 2009 59,145,000 38,575,000 93,755,000 4,530,000 - 47,755,000 - 243,760,000 14.04%2,682 2010 75,020,000 35,675,000 87,745,000 4,970,000 3,830,000 48,970,000 - 256,210,000 15.08%2,742 2011 78,055,000 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 2012 75,695,000 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 2013 79,710,000 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 2014 89,050,000 21,805,000 14,920,000 4,100,000 1,905,000 87,210,000 47,995,000 266,985,000 12.65%2,624 2015 81,855,000 19,890,000 13,395,000 87,305,000 44,670,000 - - 247,115,000 10.88%2,366 2016 88,380,000$ 30,080,000$ -$ 3,610,000$ 1,075,000$ 78,575,000$ 56,040,000$ 257,760,000$ 10.30%2,362 Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements. Personal income information for the City of College Station is only available for calendar years 2005 - 2012. 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. Premiums for 2016 were $2,464,939 for Certificates of Obligation and $5,751,277 for General Obligation Bonds. Business-Type ActivitiesGovernmental Activities CITY OF COLLEGE STATION, TEXAS Outstanding Debt by Type Last Ten Fiscal Years (unaudited)132 General Percentage of Obligation Less Debt Service Net Actual Taxable Fiscal Year Bonds Cash Funds Bonded Debt Value of Property Per Capita 2007 55,720,000$ 2,060,709$ 53,659,291$ 1.34%638 2008 60,695,000 2,573,421 58,121,579 1.30%668 2009 59,145,000 3,125,126 56,019,874 1.13%611 2010 75,020,000 4,115,689 70,904,311 1.33%759 2011 78,055,000 4,007,146 74,047,854 1.36%782 2012 75,695,000 3,320,293 72,374,707 1.26%750 2013 79,710,000 3,032,594 76,677,406 1.29%794 2014 89,050,000 2,839,310 86,210,690 1.39%847 2015 126,525,000 2,560,216 123,964,784 1.89%1,187 2016 145,495,000$ 3,753,179$ 141,741,821$ 1.98%1,299 Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements. Source: City of College Station CITY OF COLLEGE STATION, TEXAS Ratios of Net General Bonded Debt Outstanding Last Ten Fiscal Years (unaudited)133 Estimated Estimated Share Debt Percentage of Direct and Governmental Unit Outstanding Applicablea Overlapping Debt Debt repaid with property taxes: College Station I.S.D.314,580,000$ 88.50%278,403,300$ Brazos County 85,975,000 47.07%40,468,433 Bryan I.S.D.199,625,000 2.05%4,092,313 Other debt: College Station I.S.D.- 0.00%- Brazos County - 0.00%- Bryan I.S.D. capital lease - 0.00%- Subtotal, overlapping debt 322,964,045 City direct debt 118,460,000 Total direct and overlapping debt 441,424,045$ Notes: CITY OF COLLEGE STATION, TEXAS Direct and Overlapping Governmental Activities Debt As of September 30, 2016 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. (unaudited) 134 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 $100 at 100% valuation. CITY OF COLLEGE STATION, TEXAS Legal Debt Margin Information September 30, 2016 (unaudited) 135 Utility Less:Net Average Maximum Service Operating Available Debt Service Annual Debt Service Annual Fiscal Year Charges Expenses Revenue Total Coverage Total Coverage 2007 87,911,120$ 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 8,976,011 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 2014 126,118,088 100,235,329 25,882,759 10,048,709 2.58 16,029,505 .1.61 2015 131,021,388 82,116,301 48,905,087 9,733,931 5.02 16,195,604 3.02 2016 132,025,959$ 76,364,434$ 55,661,525$ 9,233,111$ 6.03 16,121,947$ 3.45 Notes: 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 resolutions also require that net revenues equal at least 1.25 times the maximum annual debt service on all revenue bonds and other indebtedness payable from those revenues. CITY OF COLLEGE STATION, TEXAS Last Ten Fiscal Years Utility Revenue Bonds, Certificates of Obligation, and General Obligation Refunding Bonds Pledged-Revenue Coverage (unaudited)136 Personal Income Calendar (thousands Per Capita Unemployment Year Population of dollars)Personal Income Rate % 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 2013 99,918 2,110,139 21,119 4.9 2014 102,117 2,270,453 22,234 3.1 2015 106,465 2,502,787 23,508 2.8 Sources: City of College Station Planning Division (population) U. S. Census Bureau, American Community Survey (personal income) Texas Workforce Commission (unemployment rate) Notes: Personal income information for the City of College Station is only available for calendar years 2006-2012. CITY OF COLLEGE STATION, TEXAS Demographic and Economic Statistics Last Ten Calendar Years (unaudited) 137 2016 2007 Employer Employer Blinn College Brazos County Bryan ISD Bryan ISD CHI St. Joseph's Regional Hospital CHI St. Joseph's Regional Hospital College Station ISD City of Bryan HEB Grocery City of College Station Reynolds & Reynolds College Station ISD Sanderson Farms Reynolds & Reynolds Texas A&M Health Science Center Sanderson Farms, Inc. Texas A&M University Texas A&M University Wal-Mart/Sam's Wal Mart Source: Notes: Data includes principal employers in Brazos County. Principal Area Employers Last Calendar Year and Nine Years Prior CITY OF COLLEGE STATION, TEXAS Texas Workforce Commission, Labor Market/Career Information Department, Research Valley Partnership The Texas Workforce Commission ranking and number of employees data is confidential. Employers are listed in alphabetical order and do not reflect any ranking. (unaudited) 138 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Function/Program Police 163.5 168.5 176.0 169.0 180.5 182.5 192.5 196.5 206.5 206.5 Fire 119.0 125.0 121.0 118.0 120.5 139.0 139.0 140.0 152.0 152.0 Public Works 114.5 106.5 113.0 94.0 96.0 114.0 116.0 118.0 124.0 128.0 Parks and Recreation 123.5 131.0 133.0 133.0 119.0 117.0 111.5 105.5 106.5 107.0 Planning and Development Services 24.5 34.0 37.0 41.0 54.0 58.5 56.5 56.0 52.0 51.5 Information Services 28.5 33.0 32.0 30.5 30.0 30.5 29.5 30.5 30.5 31.5 Fiscal Services 71.0 72.5 70.5 70.0 66.5 69.8 68.8 69.8 72.8 76.8 General Government 58.5 71.0 79.5 75.0 61.5 37.5 36.5 37.5 47.0 49.5 Electric 56.5 58.0 65.0 64.0 63.5 67.5 69.5 70.5 74.5 74.5 Water / Sewer Services 71.0 67.5 76.5 70.5 74.0 77.0 77.0 78.0 84.5 84.5 BVSWMA 22.0 25.5 25.0 23.5 22.0 22.0 -- - - Capital Project n/a 10.0 10.0 9.0 9.0 --- - - Total 852.5 902.5 938.5 897.5 896.5 915.3 896.8 902.3 950.3 961.8 Source: City of College Station Notes: Full-time-equivalent employees include full time, part time, and seasonal/temporary employees on staff as of September 30. Fiscal Year 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. CITY OF COLLEGE STATION, TEXAS Full-Time-Equivalent City Government Employees by Function/Program Last Ten Fiscal Years (unaudited)139 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Function/Program General Government Open records requests 199 155 164 123 240 194 233 432 531 703 Economic development prospects 19 18 23 55 31 25 36 35 37 55 Code enforcement cases processed 4,838 5,148 6,248 5,268 4,701 5,011 4,517 7,941 9,600 7,383 Non-profit agencies/contracts monitored 7 10 9 10 8 7 8 7 7 4 Applicants receiving homebuyers assistance 6 3 4 6 3 15 8 4 4 2 Police DUI/DWI arrests 493 458 430 449 571 551 473 474 400 408 Citations processed 38,046 10,384 17,275 22,224 42,690 39,145 31,348 29,187 25,070 36,977 Uniform patrol calls handled 58,303 57,661 48,297 58,656 61,283 63,000 75,988 71,373 53,259 62,067 Average response time on high priority calls 6:17 mins 6.06 mins 6:18 mins 6:52 mins 6:41 mins 6:38 mins 4:31 mins 7:10 mins 7:46 mins 7:54 mins Criminal investigation new cases assigned 2,256 2,635 2,590 2,098 2,582 2,089 2,158 1,894 2,196 1,942 Note: In FY08 an e-citation program was implemented thus reducing the number of paper citations processed. Fire Fire incidents (fire, rescue, and hazmat)1,832 1,992 2,008 2,301 1,813 1,751 2,608 2,974 2,489 2,640 Business safety inspections 1,018 947 760 1,364 1,151 907 889 1,345 563 233 EMS incidents 3,773 4,718 5,367 5,414 5,407 6,814 4,846 5,170 5,959 6,020 EMS unit responses 5,476 5,369 5,051 5,646 6,090 6,295 8,188 9,435 10,099 6,990 Public Works Street overlay lane miles 19 15 9 2 11 10 13 13 12 18 Potholes repaired 21,506 20,546 18,000 68,548 67,448 70,515 62,596 61,439 25,392 75,574 Curb miles swept 6,040 6,955 5,620 5,595 6,244 7,131 5,826 6,311 6,672 6,863 Note: In FY10 number of potholes repaired went to number of square feet repaired. Parks and Recreation Instructional participants 3,432 3,538 3,077 3,112 2,765 1,835 1,600 2,495 2,598 2,191 Pool customers 128,206 142,605 138,785 93,302 114,458 144,059 128,081 73,229 81,083 89,980 Fiscal Year CITY OF COLLEGE STATION, TEXAS Operating Indicators by Function/Program Last Ten Fiscal Years (unaudited)140 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Function/Program Planning and Development Services Permits processed 7,583 6,647 5,819 5,972 6,026 5,600 3,991 4,446 7,766 5,797 Building inspections performed 13,398 13,814 12,938 12,379 11,583 12,100 12,945 13,859 16,069 19,860 Parking citations issued 7,238 9,460 9,686 6,763 4,488 6,530 6,868 7,320 7,515 9,899 Community enhancement cases 8,631 11,885 11,622 11,408 8,632 8,900 6,518 7,941 9,600 * Electric Number of connections 38,519 37,777 37,818 38,255 37,829 39,123 38,138 19,000 38,224 32,000 Average monthly consumption (KWH)60,766,805 64,724,128 64,065,679 65,049,732 68,191,018 65,266,563 64,568,405 66,715,908 69,577,111 68,840,787 Water Number of units 34,763 37,075 37,344 37,596 37,565 39,338 40,767 24,847 41,540 41,709 Average monthly consumption (MGW)293,246 324,012 345,170 301,399 408,327 356,791 380,558 343,360 339,840 352,253 Sewer Number of units 32,034 34,743 34,743 35,853 35,510 36,908 38,688 32,065 40,806 40,866 Average daily sewage treatment 6,502 6,626 6,625 6,700 6,242 6,453 6,500 7,129 7,598 7,584 (thousands of gallons) New services completed 521 781 604 377 301 376 319 555 623 590 Sanitation Number of users (units)28,112 29,533 30,750 30,779 30,455 31,573 32,551 23,239 22,210 22,442 Residential tons collected 27,556 22,191 21,406 28,451 22,775 28,991 25,493 26,290 25,573 21,577 Residential tons recycled 1,060 1,199 1,064 1,053 1,173 1,124 1,010 982 4,809 1,999 Commercial tons collected 38,402 38,709 36,245 36,558 35,133 34,608 36,751 37,856 39,272 40,302 Parking garage Active contract customers 472 464 333 524 482 460 354 410 364 335 Hourly cash customers 109,028 107,584 104,342 85,210 83,048 80,127 81,624 80,555 80,012 77,511 Utility Customer Service Payments processed 423,299 443,766 461,557 467,262 436,936 476,999 498,703 495,659 502,752 531,138 Incoming calls 85,842 97,121 96,876 85,212 84,861 94,986 93,075 93,862 94,037 93,970 Meters read 640,554 670,913 694,270 708,672 719,749 732,631 744,298 758,306 776,279 795,871 Source: City of College Station various departments Notes: *The City discontinued tracking Community Enhancement cases separately from Code Enforcement cases processed. Last Ten Fiscal Years Fiscal Year CITY OF COLLEGE STATION, TEXAS Operating Indicators by Function/Program - continued (unaudited)141 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Function/Program Police Patrol units 29 29 29 27 33 32 39 39 39 39 Jail capacity 17 17 17 17 17 17 17 17 17 17 Fire stations 4 4 4 4 4 5 6 6 6 6 Note: The Fire Department operates an additional fire station located at the airport. Public Works Streets (linear miles)429 438 428 453 474 482 482 493 505 543 Sidewalks (miles)100 100 119 130 138 150 156 162 181 184 Traffic signals 65 66 66 69 70 75 76 77 77 79 Storm sewers (miles)72 72 80 83 83 89 89 95 104 106 Note: Storm sewer mileage includes both underground pipes and valley gutters. Parks and Recreation Acreage 1,289 1,306 1,306 1,327 1,327 1,327 1,328 1,412 1,448 1,448 Play units 48 47 54 56 57 57 56 61 64 63 Softball/baseball fields 32 35 35 36 36 36 36 41 41 43 Soccer fields 31 29 29 30 30 30 30 35 26 33 Jogging/walking trails 28 29 33 34 34 34 34 41 42 42 Community centers 3 3 3 3 3 3 2 2 2 2 Pools 3 3 3 3 3 3 3 3 3 3 Pavilions (rentable)7 7 6 6 7 7 7 7 6 8 Note: Some parks have multiple play units. Softball/baseball fields include practice fields. Electric Peak demand (megawatts)355 355 355 305 305 325 325 204 208 208 Number of substations 5 5 5 6 6 6 6 6 7 7 Distribution lines (miles)411 411 432 440 444 438 458 458 471 471 Water Water mains (miles)367 381 385 396 402 410 415 420 430 438 Fire hydrants 2,380 2,453 2,494 2,562 2,614 2,682 2,741 2,798 2,869 2,946 Number of wells 8 8 8 9 9 9 9 9 9 9 Water production capacity 23,000 23,000 26,000 32,000 27,000 30,000 29,000 29,000 31,400 35,000 (thousands of gallons per day) Sewer Sanitary sewer lines (miles)285 301 305 313 319 324 324 324 338 348 Treatment capacity 11,500 11,500 11,500 11,500 11,500 11,500 11,500 11,500 11,500 11,509 (thousands of gallons per day) Sanitation Collection trucks 25 25 25 25 25 25 25 26 27 27 Residential collection containers 18,135 19,549 20,275 20,671 20,550 21,547 22,470 23,239 24,253 24,881 Commercial collection containers 1,594 1,619 1,644 1,669 1,694 1,719 1,744 1,894 1,916 1,916 Fleet number of vehicles 651 643 647 662 662 576 570 596 600 663 Source: City of College Station CITY OF COLLEGE STATION, TEXAS Capital Asset Statistics by Function/Program Last Ten Fiscal Years Fiscal Year (unaudited)142 1101 Texas Avenue College Station, Texas 77842 979.764.3555