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Home My WebLink AboutFY 2009 -- Popular Annaul Financail Report FINANCIAL HIGHLIGHTS ECONOMIC DEVELOPMENT - The assets of the City of College Station exceeded its liabilities at the close of the fiscal The recent slowing of the national economy has begun to impact College Station.However, year by$387.5 million(net assets).Of this amount,$98.5 million(unrestricted net assets) growth continues despite the slowdown.Housing and commercial growth continued with may be used to meet the government's ongoing obligations to citizens and creditors.The 536 new housing starts,essentiallythe same pace as in 2008.The City welcomed the ground city's total net assets increased by$15.8 million during the fiscal year. breaking of several significant projects,including a WalMart expansion/redevelopment,a new Lowe's and a new HEB grocery store in the southern part of the city. FINANCIAL REPORTING AWARDS One reason College Station did not see a larger economic slowdown in fiscal year 2009 The City of College Station received the following awards from the Government Finance was due to the major influence of Texas A&M University(TAMU).TAMU contributes more Government Finance Officers Association(GFOA)in 2009. than one billion dollars annually to the local economy. Fall 2009 enrollment was 48,702 Certificate of Achievement for Excellence in Financial students and the university employs more than 20,000 full-time and part-time staff. Reporting for the year ending on Sept.30,2008.This is the Award for highest form of recognition in state and local government Outstanding Sales11 tax collectionsn inh amount009 wne of revenue$3e , lessx than 2008 u g1 t8 percentposs. Inv decrease)and financial reporting.The city has received this award in 21 of A`hievement in I $1.12 million under the expected for budget purposes. Investment FopularAnnual 1 income decreased almost $2 million (41.7 percent) from 2008 ($240,032 less than the last 22 years. Financial Reporting expected).The city decreased its spending budget to match the lower revenues,thus Popular Annual Financial Report for the year ending Sept.30, PRE,,rwxo,o keeping its budget balanced. In fiscal year 2009,the city's general fund departments decreased their budgets by a total of$954,175. In fiscal year 2010,the general fund was r'm oer„2008,marking a first for the city. liegeStatioR i reduced by$1.9 million. Te.-R, Distinguished Budget Presentation Award for the year ,�„n.eY As a result of these actions,the city maintains a strong financial position as we continue beginning Oct. 1, 2008. The GFOA established the this .seme,RbCrin,2unw to monitor the local effect of the nationwide economic slowdown. g establishedprepare g b the National AdvisoryCouncil on ,„ 'II MostTYPES servicesOF and projects in 1984 to encourage and assist state and local governments to re arehigh-qualitybud etthatreflectthe h:',$) guidelinesY —______— State and Local Budgeting and the GFOA's recommendedcityp jects are accounted for in a general category referred to as practices on budgeting. Governmental Funds. General Fund-revenues and expenditures associated with the general operations of the ACKNOWLEDGEMENT -----'"^--'-' city that are not required to be accounted for in separate funds. Sales tax and property The preparation of this report could not have been accomplished without the efforts of tax are the major revenues paying for these activities. the entire staff of the Fiscal Services Department.We also express our thanks to the city's Special Revenue Funds-proceeds of specific revenue sources that are legally restricted Public Communications Department for its support on the City's PAFR. for specific purposes(example:Community Development Block Grants). Our appreciation is extended to the mayor and city council for their interest and support Debt Service Funds-the accumulation of resources for,and the payment of,general long- in planning and conducting the financial operations of the city in a responsible and term debt principal,interest and related costs. Property taxes pay for the governmental progressive manner. debt from this fund. Capital Projects Funds-financial resources used for the construction and/or acquisition of major capital facilities. Bond proceeds go into these funds to pay for the major capital projects. 4111 rlllit' M IU IIIIIIpIIIIIIIIIIIVm" Department of Fiscal Services II Proprietary(business-type)Funds-activities the city operates in a manner similar to (II(� P.O. Box 9960, 1101 Texas Avenue private businesses.There are two types of proprietary funds:Enterprise funds and internal College Station, TX 77$42 service funds. The city has five enterprise funds(electric,water,wastewater,sanitation Cirri,r(li(11i ci JTgri"v and Northgate parking garage)and eight internal service funds(communication services, i'i C.,,a.i n; T.,T i 979.7643575 • cstx.gov employee benefits,equipment replacement,fleet maintenance,property and casualty, unemployment,utility customer service and workers'compensation). MAJOR INITIATIVES y� In fiscal year 2009,Council priorities of a green College Station,citywide safety and security, Popular.�a.yi l. Annual exceptional infrastructure,and a destination place to live and work were addressed. The 1J city4 madein availableu $13- million in new provisions for governmental capital projects and Financial Report $42 million in business-type projects. ; The city started designing its reclaimed water project to provide reclaimed water from n scal Year 2009 Carters Creek Wastewater Treatment Plant for irrigation at Veteran's Park and Athletic -firy Complex. The city's parks and recreation department began its water conservation program,providing for more trees in the design and planning of city projects.Texas Avenue In our effort to keep you informed of how your tax dollars are being spent,we are pleased streetlights were retimed,reducing travel times by 24 percent and cutting emissions by to present the 2009 Popular Annual Financial Report(PAFR). The PAFR summarizes the reducing idling at intersections. financial activities of the city's governmental and proprietary funds and was drawn from information found in the 2009 Comprehensive Annual Financial Report(CAFR). The CAFR The city equipped its new Fire Station No.3 with two fire pumpers,two Advanced Life was prepared in conformance with generally accepted accounting principles (GAAP) Support ambulances,a fire tanker and a grass firefighting vehicle to provide improved and includes financial statements audited by Ingram,Wallis&Co.,P.C.,certified public service to citizens in recently annexed areas of the city. accountants. In 2009, the city completed College Unlike the CAFR,the PAFR is unaudited and presented on a non-GAAP basis. The GAAP Park/Breezy Heights Utility and Street basis presentation in the CAFR includes the presentation of individual funds,as well as pmV l '0j1, 00001(0)040, I ^i W010 IYliiu 0!"p' Rehabilitation Project, expansion of full disclosure of all material events,financial and non-financial,in notes to the financial Iii P ill,' j William D.Fitch(Pebble Creek Parkway statements. Copies of the CAFR are available for public viewing at city hall and online at to Rock Prairie), Barron Road Phase cstx.gov/cafr. ., ''11�uu� t :,11 ,;', Ad�r 1 (State Highway 6 frontage road to hi'8li Decatur), Eagle Avenue extension, THE CITY OF COLLEGE STATION Edelweiss Gartens Park,University Park and Woodland Hills Park.The Memorial College Station was incorporated in 1938 and on Sept. 30, 2009 had an estimated Cemetery and Aggie Field of Honor were population of 93,149. The city covers 47.2 miles in East Central Texas and is the home of P.ggie yield of Honor completed in 2009. Texas A&M University(TAMU),one of the top 50 universities in the United States. The Adamson Lagoon with police fry, 'I'MI ,"�'"j, J „�„„,m µ,,,�°u,. ill'�,i'' The city is a home-rule municipality and utilizes a council-manager form of government was completed along police 1'1 ;yv organized under the constitution and laws of the State of Texas. The city council is m composed of a mayor and six council members elected at large. department renovations,the build out 'yi0111 'm 1 z,. 0)))',' p y g of the second floor of the Municipal '' ^Ni+ �Y1^)`�1 Court Building,and the College Station Id' 0 I m,,, �mtfyc The city council appoints the city manager,city attorney,city secretary,municipal court Utilities Meeting and Training Building. v L,�tl f VA 00 dy I'1),10 judge and internal auditor.Almost all other city staff works under the direction of the city In Northgate, the city built a public wW' W °f I" manager. In 2009,the city employed approximately 940 full-time equivalent(full-time, restroom,improved arkin and "f" rurwx $ Nand seasonal/temporary)employees t IV P parkingbeganp", 4' m" i Y a video surveillance program.Chimney ' rs, i1.f.. 0 u 1. NIY �II 'II I6VV��IIII Ii IIIIIIIIIIIBII Hill Retail Plaza waspurchased as the p e " VNI,iYY' �jjjN^Viil^i 11111'(Ip1rN future site for a convention center. H.. uWu ...nwwwa,., V o part-time '�IIIIII�'V�M N1 Iyljlllullllll6, o Adamson Lagoon Bathhouse m u " � ,pi7°,I191IIiIjIIVI illlVl li ll6))1 Iliiili6 11 1 1111111li'ii;lll ulli�'11Vi IIIII��l�11111''I;IjI�N'INmIIl11'fp��H ��l� In July 2009,the city issued$34.7 million in debt that will permit significant improvements ,. r^ �i^��III��hl1liliilll�11� � III I��Ililll �i111 yI �I� N °''' to infrastructure and provide a higher quality of life to citizens. Included in the newly II Or ^,rlj II II di fllll�lllll��lli�uoui jINIINI,I 1 � I� INVlllry funded projects are the site for a new convention center,construction of a new landfill, ,,,w,W,, NNI�r ° °°� "'pII�G° jllllll IIII s 1 II!! a'I II 111 a 1Pm °° hF� li l,T IIIII IIIIII ItII IIIII 11111IIIIII Vti��N „d; 11uiPu�ll a hike and bike trails,streets and sidewalks,improvements fire stations and technological j$u^i�,� VV IIIII�V,'\ III � ��i l illlIl°uI��III uuuuuu h�I �I IH �1 ( 'I�.Id01101)' u p g u N 4; ;i J i I,,,,ii a dy 4�;ti1NU11 j!I improvements.The City carries an AA rating from Standard and Poor's and an Aa3 `�' P " 1 .r•,; Ir ,1 �jW,ll 0!,,,n .1 ,1i 111� Iy�M bond rating from Moody's,indicating the City's strong capability to meet its financial mm ')jR0,0.)�0 IAV rot v,j kOrs 10, 10.,)j v'0 Nk )"G commitments. OVa^ )))))!!��tl �jN j ! +Y r n(�N0000.F 0"V ^ ,'lih it ;ili ��OIumU��l��l YIYP „u„�. 1 ,II111 �P it 1��14i�VE'�W�Ylllrluflrlll r IIIIYYom rirrtil } CE OF THE GENE LONG DEBT Fund balance is the excess of what the city owns(assets)over what the city owes(liabilites The city issues long-term debt to fund long-term governmental projects(using general or bills). Fund balance is either unspendable(as an example,inventories are assets,but obligation bonds and certificates of obligation)and business-type projects(using utility are not cash that can be spent);restricted(hotel occupancy tax monies can only be spent revenue bonds and certificates of obligation). on what the law says they can be spent on,for example);committed(the city council sets these monies aside by ordinance or resolution);assigned(a city official or committee In 2009,the city had$244 million in long term debt outstanding,of which$16 million will assigns funds for a specific purpose);or unassigned. The unassigned fund balance is the mature in fiscal 2010.The city's total debt increased by$19.7 million(8.1 percent)in fiscal amount of funds available to spend at the city's discretion.The city's fiscal and budgetary year 2009. The rise in total debt resulted from the city issuing$3.335 million in general policies require that the general fund's undesignated(unassigned)fund balance be at obligation bonds and$31.315 million in certificates of obligation. least equal to 15 percent of budgeted expenditures,a percentage equal to 55 days of expenditures.At the end of the fiscal year,the unassigned fund balance is approximately General obligation debt is payable from the city property tax revenues(the debt service 13 percent of fiscal year 2009 budgeted expenditures,while total fund balance represents property tax levy). Utility revenue bonds are payable from a portion of the charges for 16.2 percent. utility service. Certificates of obligation are paid from either source,depending on the project being funded. At the end of the current fiscal year,the total general fund balance reached$9.4 million, a decrease of$1.8 million(7.3 percent)from the prior fiscal year. The primary factor S10.3 for this reduction was the purchase of one-time equipment and inclusion of one-time 11111111111111111111111111 IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII Long-Term Debt projects coupled with lower than anticipated sales tax revenues. Additionally,salary and benefit costs increased due to filling additional full-time positions,including police and IIII Governmental.539 fire positions. $35 1 water:$54 IIIII'm r1�4� l i necnlc:342 General Fund:Total Fund Balance - pm wa 1ewxte,$35 E Ss4 $14,000,000. ■santaton$103 $12,000,000 ��iiiii IIII Northgate Parklny Ganye.$45 $10,000,000v%D / $8,000,000. E $6,000,000- $4,000,000. PROP"I TANI 'i '1 M. •y ,TION $2,000,000. College Station owns and operates its water and wastewater plants and transmits and $0 distributes its electricity. The financial activities of each operation are recorded in the 2005 2006 2007 2008 2009 city's respective water,wastewater and electric funds. year Operating revenues for each fund have shown steady growth in response to the expanding GO VE�, NTAL IS` r, customer base and rate increases which correspond to rising costs.The following charts AC IES display water,wastewater and electric fund revenues and expenses for this year and the The city adjusts the fund statements to report all governmental activities in a format previous four years. designed for comparison to "for profit" entities in the government wide financial statements.On Sept.30,2009,the city's governmental funds(which includes the general fund,all the special revenue funds,the debt service fund,capital project funds and an WATER FUND allocation of the internal service funds) reported a combined fund balance of$53.4 The water fund ended the current fiscal year with an operating income of$7 million on$14 million,a$19.5 million decrease over the prior year. These financial activities comprise million in operating revenues. The water fund's revenues have been gradually increasing the major changes in governmental fund balances: due to an increase in the number of customers as well as rate increases, including conservation water rates in 2009. The water fund also receives developer contributions GOVERNMENTAL of Installed water Infrastructure,which amounted to$1.7 million in non-cash donations in fiscal year 2009. Total revenues of the governmental funds increased$2.9 million over the prior year. Below are details accounting for the Increase: Property taxes increased$2.1 million(10.2 percent).This is primarily the result of the total Water Fund:Revenues&Expenses ad valorem assessed valuations increasing by$478 million over the previous fiscal year. " 20174 ®' i I Sales and mixed beverage taxes decreased$368,760(1.8 percent). This is attributed to `'0'rd i INN Revenues the economic slowdown in the area. a, 2007 i 'I mill Expenses 2006 I. Interest and investment income decreased by$1.9 million(41.7 percent).This is attributed - to lower interest rates on governmental investments. 2005 ,,,,,,,,,,,,,,,,„�,,,+,,,� ® $0 $5 $10 $15 Charges for services increased$1.9 million(16.8 percent)primarily due to changes in the millions ambulance collection services that resulted in higher unavailable deferred revenue. Governmental Fund Revenues WASTEWATER I _► --•' --•� Transfers in from Other Funds 2300 The wastewater fund ended fiscal year 2009 with an operating income of$3.6 million on IIII PrepertyTax 24°„ $11.6 million of revenue.The wastewater fund's operating revenues have been increasing z 3% IN Sales Tax:21 due to an expanding customer base and rate increases.The wastewater fund received " Issnance or Debt loco $3.4 million in non-cash developer contributions in fiscal year 2009. 0 2 '$d'lygdw Other Taxes 6w "";kiliffilliffilliffilliffilliffilliffilligl 1111 Rnes&Forfenires 5% Wastewater Fund Revenues&Expenses ,„„.., for 4°° II +� ��„ � IIII Charges2003 � Ill Other 2% wmw w uul;::: u w w uw wmw w uw Special Assessment 2°0 2009 i , ,, I IINIROvenUes �15°° �� ° °M1 �wmwwwll l�l fi II II II II uuuuuuuuuwle ■Investment Income.l'o i J� �I '_005 q� I' It $- $4 $6 $8 $10 $12 $14 GO " NTAL EXPENDITURES millions Total expenditures of the governmental funds increased from$90.4 million to$107.9 million. The primary cause of the rise was an increase in capital outlays(amounts used for the purchase of equipment,roads,bridges and other capital assets)of$5.3 million and ELECTRIC FUND increasing personnel costs. The electric fund generated an operating income of$6.9 million on$82.6 million of operating revenues. The net assets of the electric fund also increase each year through Governmental Fund Expenditures developer contributions of installed electric lines. In fiscal year 2009,this non-cash too contribution was valued at$1.6 million. Capital Outlay SUP, Peirce 13. Electric Fund:Revenues&Expenses Fire,I P, , • ■Debt Xevae II& 2009 1°IIIIIIIIIIIIIIIIII�IIIIIIIIIIIIIIIIII . / 13's Pad.&Receat„,H i I IIIII{ {IIII IIII$ J ,� IIII Pe LIcworks'°o L 2008 a��llllllllllllllllll�l�ll�l�ll�l lllllllllll 1 I _ uux Revenues IIII Government 5'. gp?,p 11'S IIIII Fiscal Services 4, 11111 Expenses / IIIIII Information Technology 3% 2006 I1q IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII21 ii ■Planning&Devel„pment:3°o 2005 pourII II II I i9rini II II II II 9iiniri , 'lll'y' co-trb,tor�2, y°e uuwyy'' ■Library,1'. $0 $20 $40 seo sot $100 ■Other.F'° millions 1°° 11111 Improvement Protest Admin 0,