HomeMy WebLinkAbout03/05/2019 - Regular Minutes - City Council - Audit CommitteeCOMPREHENSIVE ANNUAL FINANCIAL REPORT(DRAFT)
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2018
City of College Station, Texas
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, 2018
Prepared by:
City of College Station Fiscal Services Department
Jeff Kersten, Assistant City Manager, CFO
Mary Ellen Leonard, CPA, Director of Fiscal Services
Accounting Operations & Financial Reporting Division
CITY OF COLLEGE STATION, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2018
Table of Contents
Page
INTRODUCTORY SECTION
Letter of Transmittal ..................................................................................................................................... 1
City Organization .......................................................................................................................................... 7
Principal City Officials ................................................................................................................................... 8
GFOA Certificate of Achievement for Excellence in Financial Reporting ..................................................... 9
FINANCIAL SECTION
Independent Auditors’ Report ................................................................................................................... 10
Management’s Discussion and Analysis (Unaudited) ................................................................................ 13
Basic Financial Statements:
Government - Wide Financial Statements:
Statement of Net Position .............................................................................................................. 34
Statement of Activities ................................................................................................................... 35
Fund Financial Statements:
Governmental Funds:
Balance Sheet ........................................................................................................................... 36
Reconciliation of the Balance Sheet of Governmental Funds to the
Statement of Net Position ................................................................................................... 37
Statement of Revenues, Expenditures and Changes in Fund Balances ................................... 38
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities............................... 39
Proprietary Funds:
Statement of Net Position ........................................................................................................ 40
Statement of Revenues, Expenses, and Changes in Net Position ............................................ 41
Statement of Cash Flows .......................................................................................................... 42
Fiduciary Funds:
Statement of Net Position ........................................................................................................ 43
Statement of Changes in Net Position ..................................................................................... 44
Notes to the Financial Statements ............................................................................................................. 46
Required Supplementary Information:
Texas Municipal Retirement System Schedule of City’s Changes in Net Pension
Liability and Related Ratios .......................................................................................................... 105
Texas Municipal Retirement System City’s Schedule of Contributions ............................................. 106
CITY OF COLLEGE STATION, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2018
Table of Contents-continued
Page
City of College Station Employees Other Post-Employment Benefits Plan
Schedule of Changes in Other Post-Employment Benefits and Related Ratios ........................... 107
City of College Station Employees Other Post-Employment Benefits Plan
Schedule of Contributions ............................................................................................................ 108
City of College Station Employees Other Post-Employment Benefits Plan
Schedule of Investment Returns……………………………………………………………………………………………. 109
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and
Actual – General Fund (reported as part of the General Fund(s)) ............................................... 110
Supplementary Information:
Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet – General Fund(s) .................................................................................... 111
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances – General Fund(s) ................................................................................................ 112
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual:
General Fund(s):
General Fund .......................................................................................................................... 113
Economic Development Fund ................................................................................................ 114
Spring Creek Local Governmental Corporation Fund ............................................................. 115
Efficiency Time Payment Fund ............................................................................................... 116
Combining Balance Sheet – Nonmajor Governmental Funds ...................................................... 117
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances – Nonmajor Governmental Funds .................................................................. 120
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual:
Special Revenue Funds:
Court Technology Fee Fund .............................................................................................. 123
Court Security Fee Fund ................................................................................................... 124
Juvenile Case Manager Fee Fund ..................................................................................... 125
Police Seizure Fund ........................................................................................................... 126
Memorial Cemetery Fund ................................................................................................ 127
Memorial Cemetery Endowment Fund ............................................................................ 128
Texas Avenue Cemetery Endowment Fund ..................................................................... 129
Hotel Tax Fund .................................................................................................................. 130
Community Development Fund ....................................................................................... 131
Wolf Pen Creek Tax Increment Financing District Fund ................................................... 132
Parks Escrow Fund ............................................................................................................ 133
Sidewalk Zones Fund ........................................................................................................ 134
CITY OF COLLEGE STATION, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2018
Table of Contents-continued
Page
Drainage Utility Fund ........................................................................................................ 135
Truancy Prevention Fee Fund ........................................................................................... 136
West Medical District Tax Incremental Reinvestment Zone No. 18 Fund ....................... 137
East Medical District Tax Incremental Reinvestment Zone No. 19 Fund ........................ 138
Public, Educational and Governmental Access Channel Fee Fund ................................. 139
R. E. Meyer Estate Restricted Gift Fund ........................................................................... 140
Roadway Maintenance Fee Fund ..................................................................................... 141
Fun For All Playground Fund. ........................................................................................... 142
System-Wide Water Impact Fee Fund .............................................................................. 143
System-Wide Wastewater Impact Fee Fund .................................................................... 144
System-Wide Roadway Impact Fee Fund ......................................................................... 145
Debt Service Fund ............................................................................................................. 146
Capital Projects Funds:
Parks and Recreation Projects Fund ................................................................................. 147
General Government Projects Fund ................................................................................. 148
Streets Projects Fund ........................................................................................................ 149
Nonmajor Enterprise Funds:
Combining Statement of Net Position .............................................................................. 151
Combining Statement of Revenues, Expenses, and Changes in Net Position .................. 152
Combining Statement of Cash Flows ................................................................................ 153
Internal Service Funds:
Combining Statement of Net Position .............................................................................. 155
Combining Statement of Revenues, Expenses, and Changes in Net Position .................. 156
Combining Statement of Cash Flows ................................................................................ 157
STATISTICAL SECTION (Unaudited):
FINANCIAL TRENDS
Net Position by Component Last Ten Fiscal Years ............................................................................. 159
Changes in Net Position Last Ten Fiscal Years .................................................................................... 160
Program Revenues by Function/Program Last Ten Fiscal Years ........................................................ 162
Fund Balances, Governmental Funds Last Ten Fiscal Years ............................................................... 163
Changes in Fund Balances, Governmental Funds Last Ten Fiscal Years ............................................. 164
REVENUE CAPACITY
Tax Revenue by Source, Governmental Funds Last Ten Fiscal Years ................................................. 166
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years ................... 167
Direct and Overlapping Property Tax Rates Last Ten Fiscal Years ..................................................... 168
CITY OF COLLEGE STATION, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2018
Table of Contents-continued
Page
Principal Property Taxpayers Current Year and Nine Years Ago ........................................................ 169
Property Tax Levies and Collections Last Ten Fiscal Years ................................................................. 170
Taxable Sales by Category Last Ten Calendar Years ........................................................................... 171
Direct and Overlapping Sales Tax Rates Last Ten Fiscal Years ........................................................... 172
Sales Tax Revenue Payers by Industry Calendar Years 2008 and 2017 ............................................. 173
DEBT CAPACITY
Outstanding Debt by Type Last Ten Fiscal Years ................................................................................ 174
Ratios of Net General Bonded Debt Outstanding Last Ten Fiscal Years ............................................ 175
Direct and Overlapping Governmental Activities Debt As of September 30, 2018 ........................... 176
Legal Debt Margin Information .......................................................................................................... 177
Pledged-Revenue Coverage Last Ten Fiscal Years .............................................................................. 178
DEMOGRAPHIC AND ECONOMIC INFORMATION
Demographic and Economic Statistics Last Ten Calendar Years ........................................................ 179
Principal Area Employers Last Calendar Year and Nine Years Prior ................................................... 180
Full-Time-Equivalent City Government Employees by Function/Program Last Ten Fiscal Years ...... 181
Operating Indicators by Function/Program Last Ten Fiscal Years...................................................... 182
Capital Asset Statistics by Function/Program Last Ten Fiscal Years ................................................... 184
P.O. BOX 9960 • 1101 TEXAS AVENUE • COLLEGE STATION • TEXAS • 77842
TEL. 979.764.3500 • FAX. 979.764.6377
cstx.gov
February 19, 2019
Honorable Mayor, Members of the City Council, and
Citizens of the City of College Station, Texas
We are pleased to submit the Comprehensive Annual Financial Report for the City of
College Station, Texas (the "City") for the fiscal year ended September 30, 2018.
This report is published to provide to the City Council, City staff, our citizens, our
bondholders and other interested parties detailed information concerning the financial
condition and activities of the City government. Responsibility for both the accuracy of
the presented data and the completeness and fairness of the presentation, including all
disclosures, rests with the City.
To the best of our knowledge and belief, the data is accurate in all material aspects, and
is organized in a manner designed to fairly present the financial position and results of
operations of the City as measured by the financial activity of its various funds. We also
believe that all disclosures necessary to enable the reader to gain the maximum
understanding of the City's financial affairs have been included.
BKD, LLP, the City’s Certified Public Accountants and independent auditors, has issued an
unmodified (“clean”) opinion on the city’s financial statements for the year ended
September 30, 2018. The independent auditors’ report is located at the front of the
financial section of this report.
Management’s discussion and analysis (MD&A), which compliments this letter,
immediately follows the independent auditors’ report and provides a narrative
introduction, overview, and analysis of the basic financial statements.
CITY PROFILE
Location
The City of College Station, incorporated in 1938, is located in Brazos County in East
Central Texas, approximately 140 miles north of the Gulf of Mexico, approximately 90
miles northwest of Houston, approximately 165 miles south of Dallas and approximately
100 miles east of Austin, in the Brazos Valley. The City has a land area of 51.16 square
miles and estimated population of 117,774 as of December 2017. The City has the power,
by state statute, to extend its corporate limits by annexation, which it has done
periodically.
P.O. BOX 9960 • 1101 TEXAS AVENUE • COLLEGE STATION • TEXAS • 77842
TEL. 979.764.3500 • FAX. 979.764.6377
cstx.gov
Structure
The City of College Station is a home rule city operating under the Council-Manager form
of government. The City Council is composed of a mayor and six council members, elected
at large, who enact local laws, determine policies and adopt the annual budget. The City
Manager is appointed by the City Council and is responsible for the daily management of
the City. The Basic Financial Statements of the City include all government activities,
organizations and functions for which the City is financially responsible as defined by the
Governmental Accounting Standards Board. Based on these criteria, the City has
incorporated the financial activities of two component units into this report. For
additional information on the reporting entity, refer to Note 1 to the basic financial
statements.
Services Provided
The City provides its citizens those services that have proven to be necessary and
meaningful and which the City can provide at the least cost. Major services provided
under general government and enterprise functions are: police and fire protection,
emergency medical service, electric services, water and wastewater services, sanitation
services, parks and recreation facilities and services, library services, street and drainage
improvements and general administrative services. Internal services of the City,
accounted for on a cost reimbursement basis are: fleet services, equipment replacement,
utility customer service, risk management, employee health, workers’ compensation and
unemployment coverage.
Accounting System and Budgetary Control
The City's accounting records for general governmental operations are maintained on a
modified accrual basis, with the revenues recorded when available and measurable, and
expenditures recorded when the services or goods are received and the liabilities
incurred. Accounting records for the City's utilities and other proprietary activities are
maintained on a full accrual basis with revenues recorded when earned and expenses
recorded as goods or services are received and the liabilities incurred.
In developing and maintaining the accounting system, consideration is given to the
adequacy of the internal control structure. Internal accounting controls are designed to
provide reasonable, but not absolute, assurance regarding: (1) the safeguarding of assets
against loss from unauthorized use or disposition, and (2) the reliability of financial
records for preparing financial statements and maintaining accountability for assets. The
concept of reasonable assurance recognizes that (1) the cost of a control should not
exceed the benefits likely to be derived, and (2) the evaluation of costs and benefits
requires estimates and judgments by management.
P.O. BOX 9960 • 1101 TEXAS AVENUE • COLLEGE STATION • TEXAS • 77842
TEL. 979.764.3500 • FAX. 979.764.6377
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All internal accounting control evaluations occur within the above framework. We believe
that the City's internal accounting controls adequately safeguard assets and provide
reasonable assurance of proper recording of financial transactions.
The City charter provides that the City Council shall adopt the annual budget prepared by
City Management as revised by the City Council. This budget is reviewed and revised by
the City Council and is formally adopted by the passage of a budget ordinance. The City
Manager is authorized to transfer budgeted amounts between line items and
departments within all funds other than the General Fund. The City Council must
authorize transfers between General Fund departments and all increases in total
spending in any fund.
Budgetary control over spending is at the department level within the City's General Fund
and at the individual fund appropriation in all other funds. The City's departments have
direct access to review budgets as often as necessary. Quarterly closing reports are
prepared and reviewed by management showing revenues, expenditures, and balance
sheets. Summarized financial reports and budget reports are prepared on a quarterly
basis.
FACTORS AFFECTING FINANCIAL CONDITION
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 continued development at Century Square. This
development along University Drive had several retail establishments open during fiscal
year 2018. On the other side of Texas Avenue the new Embassy Suites hotel opened late
in fiscal year 2017 and added significant property value to the tax base this fiscal year.
Multi-family construction continues to take place around the city as well. Sales tax
revenues were at the budgeted amount as the fiscal year 2018 plan was revised to include
growing rates, but at a slower pace. Retail development continues in other areas of the
City, especially in the Tower Point and Caprock developments in south College Station
with new restaurants and other businesses opening and others under construction to
serve the ever-growing residential populations in that area of the City.
Texas A&M University continues to see growth and development. Enrollment continues
to increase at Texas A&M University, although at a slower pace than prior years with a
1.3% increase in College Station enrollment reported for fall 2018. However, construction
of new buildings and facilities on campus continues to accommodate the rapid growth
from previous years.
The growth over the last several years continues to strain city services, such as public
safety, the transportation system, the utility services and other core services. In
P.O. BOX 9960 • 1101 TEXAS AVENUE • COLLEGE STATION • TEXAS • 77842
TEL. 979.764.3500 • FAX. 979.764.6377
cstx.gov
particular, unless measures are taken to address it, the strain on utilities, particularly
wastewater, could impact the ability to accommodate future growth in the coming years.
The FY 2018 budget set the strategic policy direction for the City and provided the funding
to implement that direction for the year. The budget allowed the staff to continue to meet
the needs of our citizens and visitors as the City continued to experience a sustained
period of growth. This showed 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.
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.
LONG-TERM FINANCIAL PLANNING
Long-Term Financial Planning Process
• Operations and Maintenance: Each year the City prepares a balanced budget,
with the involvement of the City Council, City Managers, Management Team,
finance staff and other employees. Planning meetings are held throughout the
year long process, during which discussions regarding the future of the City’s
financial health are a high priority. Financial forecasts are developed for the
coming year, and next five years for each major fund. These forecasts take
historical trends, changes in policy, and economic conditions (now and projected)
into consideration as applicable. The City also sets aside funds for major
purchases in future years (Equipment Replacement Fund) and monitors the fund
balances of every fund during the year to ensure adherence to the City’s reserve
policy.
• Capital Improvement Program: A major component of the budgeting process
every year is the Capital Improvement Program (CIP). Approximately one third of
the City’s budget is expended on capital projects annually. Extensive planning
takes place throughout the year involving every department in the City with input
from the City Council and appointed citizen committees and boards (Planning and
Zoning Board, Parks Board, Citizen’s Advisory Committee). The focus of this
planning is ongoing funding of current CIP projects, and how the City will fund
currently unfunded CIP projects in the future. During this process attention is
given to the impact the projects will have on future operations & maintenance
costs.
P.O. BOX 9960 • 1101 TEXAS AVENUE • COLLEGE STATION • TEXAS • 77842
TEL. 979.764.3500 • FAX. 979.764.6377
cstx.gov
OTHER INFORMATION
Independent Audit
Section 37 of the City's Charter requires that not less than thirty (30) days prior to the end
of each fiscal year, the City Council shall designate a qualified public accountant or
accountants who, as of the end of the fiscal year, shall make an independent audit of
accounts and other evidences of financial transactions of the city government and shall
submit the report to the City Council. Such accountants shall have no personal interest,
direct or indirect, in the fiscal affairs of the city government. They shall not maintain any
account or record of the city business, but, within specifications approved by the City
Council, shall post-audit the books and documents kept by the Finance Department and
any separate or subordinate accounts kept by any other office, department or agency of
the city government.
The City of College Station has engaged BKD, LLP, formerly Baird, Kurtz & Dobson,
headquartered in Springfield, Missouri to perform the audit, and their opinion has been
included in this report. It should be noted that the auditors included all funds in their
audit, performed their audit in accordance with both U.S. generally accepted auditing
standards (GAAS) and governmental auditing standards (GAS), and concluded, based
upon the audit, that there was a reasonable basis for rendering an unmodified opinion
that the City of College Station's financial statements for the fiscal year ended September
30, 2018 are fairly presented in conformity with U.S. generally accepted accounting
principles and governmental auditing standards. The independent auditors' report is
presented as the first component of the financial section of this report.
Certificate of Achievement
The Government Finance Officers Association of the United States and Canada ("GFOA")
awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of
College Station for its Comprehensive Annual Financial Report for the Fiscal Year ended
September 30, 2017. This was the thirty-fourth year the City has received this prestigious
award. In order to be awarded, a government must publish an easily readable and
efficiently organized comprehensive annual financial report. The report must satisfy both
generally accepted accounting principles and applicable legal requirements. The
September 30, 2018 report will be submitted to the GFOA to determine eligibility for
another certificate.
Responsibility for Financial Reporting
The City's Senior Management, including the City Manager, Deputy City Manager and
Assistant City Manager, accept the responsibility for the accuracy, integrity, consistency,
and reliability of the financial statements. They also acknowledge their responsibility for
assuring the continuous monitoring of the City's system of internal controls for
compliance in order to prevent misappropriation of assets and fraudulent financial
P.O. BOX 9960 • 1101 TEXAS AVENUE • COLLEGE STATION • TEXAS • 77842
TEL. 979.764.3500 • FAX. 979.764.6377
cstx.gov
reporting. Additionally, they confirm their commitment to fostering a strong ethical
climate and communicating those standards to employees through personnel rules,
administrative regulations, and City law.
Acknowledgement
The preparation of this report could not have been accomplished without the efforts and
dedicated services of the Finance Department. Appreciation is also expressed to City
employees throughout the organization, especially those employees instrumental in the
successful completion of this report. Acknowledgement is also given to BKD, LLP.
Appreciation is extended to the Mayor and City Council for their interest and support in
planning and conducting the financial operations of the City in a responsible and prudent
manner.
Respectfully submitted,
____________________________ _________________________
Bryan C. Woods Jeff Kersten
City Manager Assistant City Manager / CFO
____________________________
Jeff Capps
Deputy City Manager
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
Treasury
City of College Station, Texas
September 30, 2018
Principal City Officials
Elected Officials
Mayor ............................................................................................................................................. Karl Mooney
City Council Place 1 ............................................................................................................................... Bob Brick
City Council Place 2 ................................................................................................................... Jerome Rektorik
City Council Place 3 ......................................................................................................................... Linda Harvell
City Council Place 4 ......................................................................................................................... Barry Moore
City Council Place 5 .......................................................................................................................... John Nichols
City Council Place 6/Mayor Pro Tem ........................................................................................... James Benham
City Administration
City Manager ............................................................................................................................................ vacant
Deputy City Manager ................................................................................................................................ vacant
Assistant City Manager, CFO ............................................................................................................ Jeff Kersten
Assistant City Manager/Interim City Manager ................................................................................... Jeff Capps
Director of Planning and Development Services ...................................................................................... vacant
Director of Fiscal Services .................................................................................................... Mary Ellen Leonard
Director of Marketing & Public Communications ................................................................................ Jay Socol
Director of Water Services ............................................................................................................ Gary Mechler
Director of Electric Utility ............................................................................................................ Timothy Crabb
Chief of Police ............................................................................................................................ Scott McCollum
Fire Chief .............................................................................................................................. Jonathan McMahan
Director of Public Works............................................................................................................ Donald Harmon
Director of Parks and Recreation ................................................................................................. David Schmitz
Chief Information Officer ............................................................................................................ Sindhu Menon
Director of Human Resources .......................................................................................................... Alison Pond
Director of Community Services ...................................................................................................... Debbie Eller
Director of Economic Development ................................................................................................. Natalie Ruiz
City Attorney ................................................................................................................................ Carla Robinson
City Secretary ................................................................................................................................... Tanya Smith
Internal Auditor ..................................................................................................................................... Ty Elliott
INSERT AUDITORS’ REPORT HERE
PAGE 1
INSERT AUDITORS’ REPORT HERE
PAGE 2
INSERT AUDITORS’ REPORT HERE
PAGE 3
Management’s Discussion and Analysis
For the Fiscal Year Ended September 30, 2018
(Unaudited)
This section of the City of College Station’s (the “City”) Comprehensive Annual Financial Report
presents a narrative overview and analysis of the financial activities of the City for the fiscal year
ended September 30, 2018. 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
$628,666,223 (net position). Of this amount,
$136,080,528 (unrestricted net position) may
be used to meet the government’s ongoing
obligations to citizens and creditors.
• The City’s total net position, after
restatement, increased by $59,060,718
during the fiscal year.
• At the close of the current fiscal year, the
City’s governmental funds reported
combined ending fund balances of
$161,628,994, a decrease of ($6,635,486)
when compared to the prior year, as restated.
This decrease is due primarily to the planned
cash outlay of contributions for capital
projects including the construction of a new
police station, transportation and parks
capital projects.
• The September 30, 2017 Net Position was restated for multiple reasons. The Governmental
Net Position was restated for the required implementation of GASB 75 related to Other Post
Retirement Benefits (OPEB). In addition, Net Position and governmental funds Fund Balance
were revised for an adjustment to accrued Sales Tax and a correction to Community
Development Loans. The net impact of these restatements was an increase in Net Position
of $170,207 for the Governmental Activities and $2,706,262 for governmental fund
balances. The Proprietary Fund Balances were also restated as a result of implementation of
GASB 75. The resulting change to the previously reported Net Position was a decrease to
Net Position of ($1,971,678).
• The implementation for GASB 75, which required the use of a different actuarial method,
changes to the OPEB plan structure implemented by the City, and the implementation of an
Management’s Discussion and Analysis
For the Fiscal Year Ended September 30, 2018
(Unaudited)
OPEB Trust to pre-fund these expenses, gained the City a benefit of $4,855,026 that is
reflected as a reduction of salaries and benefit costs for each department in the September
30, 2018 Government Wide Financial Statements - Statement of Activities.
• The City of College Station was the only participant in West Medical District TIRZ No. 18 and
no additional development opportunities were available in the area. Therefore, City Council
voted to dissolve this TIRZ on May 24, 2018 and the remaining balance of $914,724 was
transferred to the General Fund Capital Projects Fund.
• Approximately 14.9 percent of the combined governmental funds ending fund balance, or
$24,033,874, is available for spending at the City’s discretion (unassigned fund balance).
• The City’s total amount of outstanding debt is $322,495,000, which is a net increase of
$13,830,000 over last year. This increase is primarily due to the issuance of $18,230,000 of
new debt for streets, parks and the design of a new city hall, as well as the issuance of
$19,150,000 for capital projects related primarily to water and wastewater infrastructure
projects. Additional details on the debt issuance can be found in the Note 14 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.
Management’s Discussion and Analysis
For the Fiscal Year Ended September 30, 2018
(Unaudited)
The following diagram illustrates the relationship between the different components of this
report:
Relationship between Comprehensive
Annual Financial Report (CAFR)
and
Basic Financial Statements and
Required Supplementary Information (RSI)
General information on the government
structure, services, and environment
Pages 1-9
Management’s Discussion and Analysis
Pages 13-33
Government-Wide Financial Statements
Pages 34-35
Governmental Fund Financial Statements
Pages 36-39
Proprietary Fund Financial Statements
Pages 40-43
Fiduciary Fund Financial Statements
Pages 44-45
Notes to the Financial Statements
Pages 46-106
Additional Required
Supplementary Information
Pages 107-110
Information on individual funds & other
supplementary information
not required by GAAP
Pages 111-155
Trend Data and Nonfinancial Data
Pages 156-184
Introductory
Section
Basic
Financial
Statements
and
RSI
Financial
Section
Statistical
Section
Management’s Discussion and Analysis
For the Fiscal Year Ended September 30, 2018
(Unaudited)
GOVERNMENT-WIDE FINANCIAL STATEMENTS
The government-wide financial statements are designed to provide readers with a broad
overview of the City’s finances, in a manner similar to a private-sector business.
The statement of net 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 declining.
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 34-
35.
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.
Management’s Discussion and Analysis
For the Fiscal Year Ended September 30, 2018
(Unaudited)
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, General
Government Projects 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 36-39.
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
Management’s Discussion and Analysis
For the Fiscal Year Ended September 30, 2018
(Unaudited)
provided for the General Fund, Debt Service Fund, Special Revenue Funds and Capital Projects
Funds to demonstrate each fund’s compliance with its budget.
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 40-43.
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 46-104.
Required Supplementary Information
In addition to the basic financial statements and accompanying notes, this report presents certain
required supplementary information, found on pages 107-110, concerning the City’s progress in
Management’s Discussion and Analysis
For the Fiscal Year Ended September 30, 2018
(Unaudited)
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 111-
158.
Statistical Section
The statistical section containing unaudited financial trend data, revenue capacity, debt capacity,
and demographic and economic information, is included on pages 159-184.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted earlier, net position may serve as a useful indicator of a government’s financial position.
For the City, assets and deferred outflows of resources exceeded liabilities and deferred inflows
of resources by $628,666,223 at the close of the most recent fiscal year. The largest portion of
the City’s net position (70.5 percent) reflects its investment of $435,603,738 in capital assets
(e.g., land, buildings, and equipment) less any related outstanding debt used to acquire those
assets. The City uses these capital assets to provide services to citizens; consequently, these
assets are not available for future spending. Although the City’s investment in its capital assets is
reported net of related debt, it should be noted that the resources needed to repay this debt
must be provided from other sources, since the capital assets themselves cannot be liquidated
for these liabilities.
Net Position: Governmental Activities Business-Type Activities Total
2018 2017 2018 2017 2018 2017
Assets
Current and other assets $ 202,826,249 $ 196,526,619 $ 146,330,630 $ 128,503,744 $ 349,156,879 $ 325,030,363
Capital assets 314,033,397 284,218,940 387,188,442 362,397,093 701,221,839 646,616,033
Total assets 516,859,646 480,745,559 533,519,072 490,900,837 1,050,378,718 971,646,396
Deferred outflows of
resources
Pensions 6,799,715 14,275,665 1,785,848 3,784,951 8,585,563 18,060,616
OPEB 1,038,570 - 285,053 - 1,323,623 -
Refunding 1,338,244 1,577,561 2,130,003 2,206,318 3,468,247 3,783,879
Total deferred outflow of
resources 9,176,529 15,853,226 4,200,904 5,991,269 13,377,433 21,844,495
Management’s Discussion and Analysis
For the Fiscal Year Ended September 30, 2018
(Unaudited)
Liabilities
Long-term liabilities 205,228,366 216,794,183 155,324,119 151,158,559 360,552,485 367,952,742
Other liabilities 35,136,082 27,876,000 29,492,346 27,551,455 64,628,428 55,427,455
Total liabilities 240,364,448 244,670,183 184,816,465 178,710,014 425,180,913 423,380,197
Deferred inflows of
resources
Pension 5,418,100 402,342 1,402,674 102,847 6,820,774 505,189
OPEB 2,423,159 - 665,082 - 3,088,241 -
Total deferred inflows of
resources 7,841,259 402,342 2,067,756 102,847 9,909,015 505,189
Net Position Net Investment in capital
assets 200,134,327 185,722,689 235,469,411 228,519,124 435,603,738 414,241,813
Restricted 39,720,716 39,533,053 17,261,241 1,581,501 56,981,957 41,114,554
Unrestricted 37,975,425 26,270,518 98,105,103 87,978,620 136,080,528 114,249,138
Total net position $ 277,830,468 $ 251,526,260 $ 350,835,755 $ 318,079,245 $ 628,666,223 $ 569,605,505
An additional portion of the City’s net position, $56,981,957 (9.1 percent) represents resources
that are subject to external restriction on how they may be used. The remaining balance of
unrestricted net assets, $136,080,528 (21.6 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 $59,060,718 as a result of fiscal year 2018
operations, as compared to the increase of $45,067,247 for fiscal year 2017 operations. The prior
period adjustment to the net position at the beginning of the year reflected below relates to the
required implementation of GASB 75 - Other Post Retirement Benefits, and corrections to
accrued Sales Tax and Community Development Loans. See Note 1 under New Accounting
Pronouncements, in the accompanying financial statements for further discussion of GASB 75
and Note 2 for the details related to the restatements of the accrued Sales Tax and Community
Development Loan.
Management’s Discussion and Analysis
For the Fiscal Year Ended September 30, 2018
(Unaudited)
The following table provides a summary of the City’s operations for the year ended September
30, 2018 and highlights key elements of the change in the City’s net position:
Changes in Net Position Governmental Activities Business-Type Activities Total
Revenues 2018 2017 2018 2017 2018 2017
Charges for services $ 22,090,286 $ 16,446,405 $ 151,079,241 $ 145,519,567 $173,169,527 $ 161,965,972
Operating contributions 2,692,063 2,949,829 1,542,900 1,032,027 4,234,963 3,981,856
Capital contributions 14,456,341 13,481,280 10,062,900 8,559,043 24,519,241 22,040,323
Property taxes 43,492,512 37,476,196 - 43,492,512 37,476,196
Sales and mixed
beverage taxes 28,799,040 28,561,762 - 28,799,040 28,561,762
Other taxes 9,392,804 8,854,726 - 9,392,804 8,854,726
Gain on sale of capital
assets - 46,469 - - 46,469
Interest and investment
income 2,476,318 1,204,827 1,444,135 855,367 3,920,453 2,060,194
Total revenues 123,399,364 109,021,494 164,129,176 155,966,004 287,528,540 264,987,498
Expenses
Police 21,571,950 22,370,803 - 21,571,950 22,370,803
Fire 19,367,032 17,980,949 - 19,367,032 17,980,949
Public works 24,452,406 19,858,859 - 24,452,406 19,858,859
Parks & recreation 11,727,549 10,774,101 - 11,727,549 10,774,101
Library 1,118,522 1,182,331 - 1,118,522 1,182,331
Planning & development 3,517,911 3,967,606 - 3,517,911 3,967,606
Information technology 5,027,435 5,027,015 - 5,027,435 5,027,015
Fiscal services 3,795,099 4,246,886 - 3,795,099 4,246,886
General government 15,155,670 17,018,777 - 15,155,670 17,018,777
Interest on long term
debt 6,075,924 4,318,990 - 6,075,924 4,318,990
Unallocated depreciation - 1,390,156 - - 1,390,156
Electric utility - - 78,029,786 75,878,632 78,029,786 75,878,632
Water utility - - 14,041,059 13,652,580 14,041,059 13,652,580
Wastewater utility - - 13,170,661 12,281,262 13,170,661 12,281,262
Sanitation services - - 8,554,011 9,006,946 8,554,011 9,006,946
Parking operations - - 1,061,336 964,358 1,061,336 964,358
Total expenses 111,809,498 108,136,473 114,856,853 111,783,778 226,666,351 219,920,251
Incr (Decr) in net
position before transfers 11,589,866 885,021 49,272,323 44,182,226 60,862,189 45,067,247
Transfers net 14,544,135 12,754,258
(14,544,135)
(12,754,258) - -
Increase in net position 26,134,001 13,639,279 34,728,188 31,427,968 60,862,189 45,067,247
Net position at beginning
of year 251,526,260 237,886,981 318,079,245 286,651,277 569,605,505 524,538,258
Prior period adjustment 170,207 -
(1,971,678) -
(1,801,471) -
Net position at end of
year $ 277,830,468 $ 251,526,260 $ 350,835,755 $ 318,079,245 $ 628,666,223 $ 569,605,505
Management’s Discussion and Analysis
For the Fiscal Year Ended September 30, 2018
(Unaudited)
Governmental Activities: Governmental activities increased the City of College Station’s net
position by $26,134,001. Key elements of this net increase are as follows:
• Total governmental revenues increased by 13.2% over the prior year.
• Property tax revenues increased by 16.05% over the prior year as a result of increases in
the property value and an increase in the ad valorem tax rate.
• Sales tax receipts increased 0.83%, which was below the budgeted rate.
• Investment income earned increased 105.5% as a result of higher interest rates, a more
proactive investing plan instituted in fiscal year 2017, and higher investment balances than
anticipated due to slower than planned spending on capital investments.
• All other governmental activity revenues increased 15.94% over prior year as a result of
planned additional capital grants and contributions increase to fund significant planned
capital projects like a new police station.
• Total governmental expenditures increased 3.40% over the prior year, in part as a result
of an increase in salaries and benefits expense and an addition of 10 new public service
personnel.
Management’s Discussion and Analysis
For the Fiscal Year Ended September 30, 2018
(Unaudited)
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 in fiscal year 2018 by $34,728,188 as opposed to a $31,427,968 increase for fiscal
year 2017. Key elements of this increase are as follows:
• Increases in the population and therefore number of meters resulted in an increase
in revenue generated from the Electric Utility.
Property Taxes
35.3%
Sales and Mixed
Beverage Tax
23.3%
Other Taxes
7.6%
Charges for
Services
17.9%
Capital, Grants
Contrib
11.7%
Misc
4.2%
Governmental Activities Revenue By Source
$123,399,364
-
4,000,000
8,000,000
12,000,000
16,000,000
20,000,000
24,000,000
28,000,000
Police Fire Public
Works
Parks &
Rec
Plan &
Dev
Inform
Tech
Fiscal
Svcs
Gen'l
Gov't
Other
Governmental Activities Program Revenue and Expense
Revenue
Management’s Discussion and Analysis
For the Fiscal Year Ended September 30, 2018
(Unaudited)
• In addition to the population increase, the Water Fund increased rates by 6% in fourth
quarter 2018, resulting in an increase in revenue for that fund.
• An increase in customers and fourth quarter 2018 rate increase resulted in an increase
in revenue for the Solid Waste Fund.
• A Wastewater a rate increase of 8% in fiscal year 2017 helped support the projected
Wastewater Capital Improvement plan and ongoing operations and maintenance
resulting in this fund operating at a break-even level for fiscal 2018.
• Capital infrastructure from various developments throughout the City contributed
$10,062,900 to the revenue generated by the proprietary funds.
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:
Charges for
Services
92.0%
Grants &
Contributions
7.1%
Other
0.9%
Business-type Revenue
$164,129,176
Management’s Discussion and Analysis
For the Fiscal Year Ended September 30, 2018
(Unaudited)
FINANCIAL ANALYSIS OF THE CITY’S FUNDS
As noted previously, the City uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements.
Governmental Funds
The focus of the City’s governmental funds is to provide information on near-term inflows,
outflows, and balances of resources that are available for spending. Such information is useful in
assessing the City’s financing requirements. In particular, 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, General Government Projects Fund, and Streets Projects Fund. Other governmental funds
of the City are reported as nonmajor funds.
At of the end of fiscal year 2018, the City’s governmental funds reported combined ending fund
balances of $161,628,994. Approximately 14.9 percent, totaling $24,033,874 of this total
amount, constitutes unassigned fund balance and is available for spending at the City’s
discretion.
The remainder of fund balance is reserved to indicate that it is not available for new spending
because it has already been committed as follows:
Nonspendable
$ 628,518
Restricted
115,535,066
-
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
120,000,000
Electric Water Wastewater Solid Waste Parking
Business-type Program Revenue and Expense
Revenue Expenses
Management’s Discussion and Analysis
For the Fiscal Year Ended September 30, 2018
(Unaudited)
Committed
19,303,359
Assigned
2,128,177
A detailed breakdown of the fund balance by fund can be found in Note 17, Components of Fund
Balances.
Revenues for governmental functions totaled
$108,525,709 in the fiscal year ended
September 30, 2018, an increase of 10.2
percent or $10,067,787 from the fiscal year
ended September 30, 2017. One component
of the increase is an 11.41 percent increase in
the total taxable assessed property valuations
coupled with an increase of 2.5 cents per $100
in valuation in the associated tax rate, to pay
for the new Police Station. In January 2017,
$408,568,903 in taxable new market value
was added to the tax rolls and there was an
increase in existing property values of
$377,518,213. The total taxable assessed valuation of $7,906,085,439 for the City was assessed
at a $0.4975 per one hundred dollars in valuation for fiscal year 2018, which is a rate 2.5 cents
higher than the rate for fiscal year 2017. Finally, there was an increase in service fee rates and
the creation of a roadway maintenance fee in 2017 that contributed to the increase in
governmental revenues.
Expenditures for governmental functions totaling $147,959,195 increased by $15,372,632 or 11.6
percent. Salaries and benefits and equipment purchased for the fiscal year ended September 30,
2018 were significant contributions to the increase. An additional $3,738,109 of the increase in
expenditures relates to an increase in principal retirement and interest costs on debt service.
Other financing sources and uses (net) totaling $32,798,000 account for the transfer into the
general fund from business like activities as well as the issuance of debt and related costs. Debt
issuance and refunding related to the general fund decreased by $49,285,314 in fiscal 2018 over
that of fiscal 2017 as the City issued less debt in 2018. Fiscal year 2017 includes the issuance of
debt for the payment of construction of a new police station as well as several major
transportation projects. Overall, for fiscal year 2018, expenditures and financing sources for
governmental functions exceeded revenues by ($6,635,486) as the City utilized prior year’s
resources on planned capital expenditures.
The General Fund is the chief operating fund and primary governmental fund of the City of
College Station. At the end of the current fiscal year, the unassigned fund balance was
$24,033,874, while the total fund balance was $26,790,569. The City’s fiscal and budgetary
policies require that the General Fund’s fund balance be at least equal to 15 percent of budgeted
Management’s Discussion and Analysis
For the Fiscal Year Ended September 30, 2018
(Unaudited)
expenditures, a percentage equal to 55 days of expenditures. The total fund balance is
approximately 32.6 percent of fiscal year 2018 actual expenditures and exceeds the minimum
requirement set by policy.
As a measure of a fund’s liquidity, it is useful to compare both unassigned and total fund balance
to total fund actual expenditures. Unassigned fund balance represents 29.3 percent of total
general fund expenditures, while total fund
balance represents 32.6 percent of total
general fund expenditures. The total fund
balance for the general fund continues to
meet and exceed the Fiscal and Budgetary
Policy.
The General Fund’s fund balance ended the
fiscal year with an increase of $4,276,046.
This was the result of lower expenditures
than budgeted and a sales tax prior period
adjustment explained in Note 2.
The Debt Service Fund ended the fiscal year with a fund balance of $5,272,810. This entire
amount is reserved for the payment of debt service. The net increase in the debt service fund
balance during the current fiscal year was $211,373.
The General Government Projects Fund ended the fiscal year with a balance of $40,236,419, all
of which is legally restricted based on the covenants from various bond issuances as of September
30, 2018. The General Government Projects Fund is separately shown in the accompanying
financial statements for 2018, as it is considered a major fund requiring separate disclosure. The
net increase in fund balance during the current fiscal year was $573,758. This net increase was in
part due to bond proceeds received from the current fiscal year debt issuance.
The Streets Projects Fund ended the fiscal year with a balance of $39,193,275, all of which is
legally restricted based on the covenants from various bond issuances as of September 30, 2018.
The net decrease in fund balance during the current fiscal year was ($10,382,052). This decrease
was attributable to more being expended on appropriated capital projects, including Lakeway
Drive, than long term debt being issued for future street capital projects.
The Other Governmental Funds ended the fiscal year with a balance of $50,135,921, of which
$30,832,562 is legally restricted and $19,303,359 has been committed for specific purposes by
City Council. The remainder of the fund balance is in a nonspendable form as it is held by the City
in inventory. The balances’ in the Nonmajor Governmental funds increase of $1,391,651 was
attributable to an issuance of debt for parks capitals projects that was not spent in Fiscal year
2018.
Management’s Discussion and Analysis
For the Fiscal Year Ended September 30, 2018
(Unaudited)
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 $345,184,301. Of this amount, 26.8 percent, totaling $92,453,649 constitutes
unrestricted net position. The remainder of net position for the proprietary funds is composed
of an amount invested in capital assets of $235,469,411 and $17,261,241 of restricted net
position.
Operating revenues for proprietary activities totaled $149,608,146 for the fiscal year, which is an
increase of 3.8 percent, or $5,472,224, from the previous fiscal year as a result of an increase in
the service fees charged for water and solid waste in the fourth quarter of fiscal year 2018. The
increase in population for the service areas also contributed to the increase in revenue as more
services were provided. Operating expenses decreased ($211,887) or (0.20) percent for the same
period. Operating income was $43,888,114 for fiscal year 2018 as compared to $38,204,003 for
fiscal year 2017 with the increase attributable to the revenue increase discussed above. Overall,
the Proprietary Funds had an overall increase of $32,756,510 in net position for fiscal year 2018
after the effect of the restatement.
Management’s Discussion and Analysis
For the Fiscal Year Ended September 30, 2018
(Unaudited)
Electric Fund
At the end of the fiscal year, the
unrestricted net position for the
Electric Fund totaled $54,588,261.
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,
2018, Electric Fund working capital
equaled approximately 76.2
percent of annual operating
expenses, as compared to 53.6
percent at September 30, 2017.
There were no rate changes for the
electric utility instituted in fiscal
year 2018. Therefore, the entire
increase in revenue of $3,545,270
relates to increases in customers.
Purchased power and salary and
benefits expenses were slightly
lower than last year despite the
service growth. These factors
contributed to an overall increase
in net position of $21,148,440 prior
to adoption of GASB 75 for fiscal
year 2018 as compared to
$19,622,392 for fiscal year 2017.
Water Fund
Unrestricted net position for the Water Fund at September 30, 2018 totaled $11,526,800. At
September 30, 2018, Water Fund working capital equaled approximately 88.2 percent of annual
operating expense, as compared to 141.2 percent at September 30, 2017. The Water Fund
operating revenues increased by 6.1 percent or $936,073 during fiscal year 2018 as a result an
increase in rates of 6% in the fourth quarter as well as the population growth within the City.
Operating expenses of $11,162,261 decreased 1.74 percent or ($197,454) over fiscal year 2017,
due to a decrease in salaries and benefits as well as purchased professional services. This resulted
in operating income of $5,117,212 for fiscal year 2018 as compared to $3,983,685 for fiscal year
2017. The operating income, when combined with the net nonoperating expenses, net capital
Management’s Discussion and Analysis
For the Fiscal Year Ended September 30, 2018
(Unaudited)
contributions and transfers, resulted in an increase in net position of $4,518,729 in the Water
Fund during fiscal year 2018 prior to the adoption of GASB 75.
Wastewater Fund
The Wastewater Fund’s unrestricted net position at the end of fiscal year 2018 totaled
$24,607,343. At September 30, 2018, Wastewater Fund working capital equaled approximately
199.9 percent of annual operating expenses, as compared to 171.2 percent at September 30,
2017. This net position will be utilized in the future for a planned wastewater treatment plant on
the south side of College Station.
Operating revenues in Wastewater Fund were $17,497,893 or a $455,253 or 2.67 percent
increase over the previous fiscal year of $17,042,640. There were no rate changes for the
wastewater utility instituted in fiscal year 2018. Therefore, the entire increase in revenue of
relates to increases in volume. Operating expenses increased from $10,934,129 to $11,030,646,
or 0.88 percent, as a result of an increase in depreciation. The operating income, when combined
with the net nonoperating expenses, net capital contributions and transfers, resulted in an
increase in net position of $6,811,537 in the Wastewater Fund during the fiscal year prior to
adoption of GASB 75.
Fiduciary Fund
Established in September 2017, the Other Post Employment Benefit Trust Fund reports resources
that are held in trust for the members and beneficiaries of the City’s other postemployment
benefit plan. With the establishment of the trust, the City can pre-fund (make annual payments
in advance of the obligation) and allocate funds for the express purpose of funding future OPEB
costs. The investment returns can be used to reduce the ARC and can result in lower long-term
costs of the plan. These assets are excluded from the government-wide financial statements as
they cannot be used to support the government's own programs.
BUDGETARY HIGHLIGHTS
The final amended budget for fiscal year 2018 totaled $376,747,538, as amended for all funds. In
the General Fund, the final amended budget showed a decrease in fund balance of ($5,060,072)
on a budget basis. The actual change in fund balance (GAAP Basis) was an increase of $864,400.
The following are some of the key factors in the change in fund balance:
• Revenues were higher than the estimate by $1,978,459.
• Expenditures were under budget by $4,013,810 due to savings from salaries and benefits.
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:
Management’s Discussion and Analysis
For the Fiscal Year Ended September 30, 2018
(Unaudited)
• Good Governance
• Financially Sustainable City
• Providing Core Services and Infrastructure
• Neighborhood Integrity
• Diverse Growing Economy
• Improving Mobility
• Sustainable City
Budget resources were included in fiscal year 2018 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, 2018 amounted to $701,221,839 (net of
accumulated depreciation), which is a net increase of
$54,605,806 for the fiscal year. 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, as
detailed below:
Governmental Business-Type
Activities Activities Total
Land $ 34,257,196 $ 690,750 $ 34,947,946
Utility systems - 333,473,880 333,473,880
Buildings and other improvements 25,292,735 3,867,237 29,159,972
Improvements other than buildings 21,796,192 - 21,796,192
Machinery and equipment 15,919,573 2,709,514 18,629,087
Infrastructure 166,213,484 - 166,213,484
Construction in progress 50,554,217 46,447,061 97,001,278
$ 314,033,397 $ 387,188,442 $ 701,221,839
Major capital projects completed by the City during the 2018 fiscal year included the following:
• Lick Creek Nature Center
• Texas Ave Planter Box Replacement
• Northgate Street Meter Upgrade
• Raintree-Sidewalks
• Central Park-Softball Lighting
• Pebble Creek-Lighting
• Barracks Park-Various improvements
Management’s Discussion and Analysis
For the Fiscal Year Ended September 30, 2018
(Unaudited)
• Castlegate-New Fencing, Exercise Pod and Tennis Court Lights
• Gabbard Park-New fence & repairs to pier and bridge
• Bachmann Park-Lighting upgrade
• Aggie Field of Honor-New sidewalk
• Drainage improvements Dominik/Stallings
• Extended Electric Infrastructure at Jones Crossing
• Electric Distribution Feeder directly to Bio Corridor
Additional information on the City’s capital assets can be found in Note 9 to the financial
statements.
DEBT ADMINISTRATION
At the end of the 2018 fiscal year, the City of College Station had total debt outstanding of
$322,495,000. 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.
2018 Year-End Outstanding Debt Payable
Governmental
Activities
Business-Type
Activities Total
General Obligation Bonds $ 89,925,000 $ 55,240,000 $ 145,165,000
Certificates of Obligation 85,495,000 91,835,000 177,330,000
$ 175,420,000 $ 147,075,000 $ 322,495,000
The City’s total debt increased by $13,830,000 during the current fiscal year. The change in total
debt was a result of the following:
• Issuance of $18,230,000 in Certificates of Obligation for Governmental Activities.
• Issuance of $19,150,000 in Certificates of Obligation for Business Type Activities.
• Maturity of ($23,550,000) in General Obligation bonds and Certificates of Obligation.
The City’s General Obligation and Certificates of Obligation have an underlying rating of AA+ by
Standard & Poor’s (“S&P”) and Aa1 by Moody’s Investors Service (“Moody’s”).
Management’s Discussion and Analysis
For the Fiscal Year Ended September 30, 2018
(Unaudited)
Additional information on the City’s long-term debt can be found in Note 14 to the financial
statements.
PENSIONS AND RETIREE HEALTHCARE
The City accounts for its pension obligation under Governmental Accounting Standard Board
(GASB) Statement No. 68, “Accounting and Financial Reporting for Pensions”. Valuations are
important as the reporting valuation provides a rigorous standard 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, 2018 of $27,095,915, which is
50.31 percent of the City’s annual covered payroll of $53,860,040, as compared to a Net Pension
Management’s Discussion and Analysis
For the Fiscal Year Ended September 30, 2018
(Unaudited)
Liability as of September 30, 2017 of $41,650,063, which was 82.32 percent of the City’s annual
covered payroll.
As required by state laws, in addition to the pension benefits described in Note 22, the City makes
available certain postretirement benefits to employees who meet TMRS retirement
qualifications, retire from City employment, and enroll in the plan before the effective date of
their retirement. The Other Post-Employment Benefits (OPEB) Plan offers medical, dental, vision,
drug, and life insurance benefits to retired employees and their eligible dependents and is more
fully explained in Note 23. As required, the City adopted GASB Statements No. 75 for its
accounting for the retiree healthcare obligation. As a result of this implementation, a prior period
adjustment was recognized to decrease beginning net position by ($4,855,024). The financial
statements reflect a net post-employment benefits liability of $6,293,976 and $17,822,125 as of
September 30, 2018 and 2017, respectively. This decrease in the OPEB obligation of
($11,528,149) is a result of changes in eligibility, actuarial assumptions and prefunding of the
Trust.
The City continued to fund its retiree healthcare obligation in fiscal year 2018 into an irrevocable
trust. A total of $2,646,668 has been prefunded into the trust as of September 30, 2018. More
information related to the OPEB Trust can be found in Note 24 of this report.
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 continued
development at Century Square. This development along University Drive had several retail
establishments open during fiscal year 2018. On the other side of Texas Avenue the new
Embassy Suites hotel opened late in fiscal year 2017 and added significant property value to the
tax base this fiscal year. Multi-family construction continues to take place around the city as well.
Sales tax revenues were at the budgeted amount as the fiscal year 2018 plan was revised to
include growing rates, but at a slower pace.
Retail development continues in other areas of the City, especially in the Tower Point and
Caprock developments in south College Station with new restaurants and other businesses
opening and others under construction to serve the ever-growing residential populations in that
area of the City. Construction is also underway on a Mercedes Benz, BMW and other luxury car
dealership, adding to the ad valorem tax base in FY19. The City’s third HEB grocery store opened
in August 2018, further attesting to the growth in the area’s population.
Texas A&M University continues to see growth and development. Enrollment continues to
increase at Texas A&M University, although at a slower pace than prior years with a 1.3% increase
Management’s Discussion and Analysis
For the Fiscal Year Ended September 30, 2018
(Unaudited)
in College Station enrollment reported for fall 2018. However, construction of new buildings and
facilities on campus continues to accommodate the rapid growth from previous years.
The City’s investment in athletic facilities such as Veterans Park continue to attract significant
events including the TAAF Games of Texas for the summers of 2018 and 2019 and the Texas State
7v7 Championships. Construction of two synthetic fields are underway at Veterans Park with
construction of two additional fields planned for summer of 2019. The FY19 approved budget
includes the appropriation for development of baseball/softball facilities at Southeast Park to
further diversify the City’s athletic facilities for citizen’s use and to attract additional events.
While the continued growth of the City is positive, the rapid pace strains city services, such as
public safety, transportation and utility systems and other core services.
TAX RATE AND UTILITY RATES
The fiscal year 2019 budget was prepared using a tax rate of 50.5841 cents per $100 assessed
valuation. This is 0.8341 cents higher than the fiscal year 2018 tax rate. The increase was to offset
the initial offering of a homestead exemption to qualifying residents. The 2019 debt service
portion of the tax rate is 22.0339 cents, and the operations and maintenance portion of the tax
rate is 28.5502 cents.
The 2019 budget includes an increase in Wastewater rates of 5.0 percent to fund Capital projects.
REQUEST FOR INFORMATION
This financial report is designed to provide a general overview of the City of College Station’s
financial position for all who have an interest in the City’s finances. Questions concerning any of
the information provided in this report or requests for additional financial information should be
addressed to:
City of College Station
Finance Department
ATTN: Director of Fiscal Services
PO Box 9960
College Station, Texas 77840-9960
Or visit our website at http://www.cstx.gov/cafr
Governmental Business-type Component
Activities Activities Total Unit
Assets
Cash and cash equivalents 85,628,463$ 73,376,752$ 159,005,215$ 680,671$
Equity in investments 28,037,188 11,598,902 39,636,090 -
Receivable (net of allow for uncollectible)9,171,875 19,566,866 28,738,741 167,097
Investment interest receivable 139,949 70,854 210,803 -
Inventories 5,489,471 4,516,816 10,006,287 -
Internal balance (5,651,454) 5,651,454 - -
Prepaids 587,962 36,052 624,014 78,363
Restricted assets -
Cash and cash equivalents 77,451,704 8,573,745 86,025,449 -
Equity in investments - 2,722,948 2,722,948 -
Equity in joint venture - 17,261,241 17,261,241 -
Loan receivable 1,971,091 2,955,000 4,926,091 -
Capital assets (net of accum depreciation)
Land and construction in progress 84,811,413 47,137,811 131,949,224 -
Other capital assets (net accum depreciation)229,221,984 340,050,631 569,272,615 331,336
Intangible assets (net accum amortization)- - - 22,042
Total assets 516,859,646 533,519,072 1,050,378,718 1,279,509
Deferred outflows of resources
Pension 6,799,715 1,785,848 8,585,563 -
OPEB 1,038,570 285,053 1,323,623 -
Deferred charge on refunding 1,338,244 2,130,003 3,468,247 -
Total deferred outflows of resources 9,176,529 4,200,904 13,377,433 -
Liabilities and fund balances
Accounts payable 9,598,259 10,861,534 20,459,793 184,692
Accrued liabilities 2,652,951 904,478 3,557,429 43,612
Interfund payable 95,331 - 95,331 -
Retainage payable 989,763 1,169,811 2,159,574 -
Customer construction advances 1,496,379 - 1,496,379 -
Claims payable 3,483,498 - 3,483,498 -
Unearned revenue 813,477 132,534 946,011 53,923
Accrued interest payable 925,277 802,525 1,727,802 -
Refundable deposits 77,043 2,758,926 2,835,969 -
Compensated absences - current 253,165 59,042 312,207 -
Capital lease - current - - - 11,634
Current portion of long-term debt 14,750,939 12,803,496 27,554,435 -
Bonds and certificate of obligation payable 175,743,869 147,630,404 323,374,273 -
Compensated absences - long-term 3,071,908 716,413 3,788,321 -
Capital lease - long-term - - - 23,467
Net other post employment benefits (OPEB) liability 4,938,503 1,355,473 6,293,976 -
Net pension liability 21,474,086 5,621,829 27,095,915 -
Total liabilities 240,364,448 184,816,465 425,180,913 317,328
Deferred inflows of resources
Pension 5,418,100 1,402,674 6,820,774 -
OPEB 2,423,159 665,082 3,088,241 -
Total deferred inflows of resources 7,841,259 2,067,756 9,909,015 -
Net position
Net investment in capital assets 200,134,327 235,469,411 435,603,738 -
Restricted for:
Debt service 5,272,810 - 5,272,810 -
Public safety 856,368 - 856,368 -
Community development 2,324,659 - 2,324,659 -
Tourism 12,277,170 - 12,277,170 -
Capital projects 15,376,226 - 15,376,226 -
Other purposes 3,613,483 17,261,241 20,874,724 1,723
Unrestricted 37,975,425 98,105,103 136,080,528 960,458
Total net position 277,830,468$ 350,835,755$ 628,666,223$ 962,181$
The notes to financial statements are an integral part of this statement.
CITY OF COLLEGE STATION, TEXAS
Statement of Net Position
September 30, 2018
Expenses Charges for Services
Operating Grants and
Contributions
Capital Grants and
Contributions Governmental Activities Business-type Activities Total Component Unit
Primary government
Governmental Activities
Police $ 21,571,950 $ 361,803 $ 146,082 $ - $ (21,064,065) $ - $ (21,064,065)-$
Fire 19,367,032 2,467,765 804,630 - (16,094,637) - (16,094,637)-
Public works 24,452,406 11,435,461 464,767 12,676,590 124,412 - 124,412 -
Parks and recreation 11,727,549 1,742,638 9,140 1,779,751 (8,196,020) - (8,196,020)-
Library 1,118,522 - - - (1,118,522) - (1,118,522)-
Planning and development services 3,517,911 2,157,272 - - (1,360,639) - (1,360,639)-
Information technology 5,027,435 - - - (5,027,435) - (5,027,435)-
Fiscal services 3,795,099 3,435,452 - - (359,647) - (359,647)-
General government 15,155,670 489,895 1,267,444 - (13,398,331) - (13,398,331)-
Interest on long-term debt 6,075,924 - - - (6,075,924) - (6,075,924)-
Total governmental activities 111,809,498 22,090,286 2,692,063 14,456,341 (72,570,808) - (72,570,808)-
Business-type activities
Electric Fund 78,029,786 105,341,740 - 1,097,232 - 28,409,186 28,409,186 -
Water Fund 14,041,059 16,843,347 - 4,251,724 - 7,054,012 7,054,012 -
Wastewater Fund 13,170,661 17,882,386 - 4,165,114 - 8,876,839 8,876,839 -
Sanitation Fund 8,554,011 9,632,481 1,542,900 548,830 - 3,170,200 3,170,200 -
Northgate Parking Fund 1,061,336 1,379,287 - - - 317,951 317,951 -
Total business-type activities 114,856,853 151,079,241 1,542,900 10,062,900 - 47,828,188 47,828,188 -
Total primary government $ 226,666,351 $ 173,169,527 $ 4,234,963 $ 24,519,241 $ (72,570,808) $ 47,828,188 $ (24,742,620) $ -
Component Unit activities
Brazos Valley Convention and Visitors Bureau $ 2,214,418 $ - $ 2,254,289 $ - $ 39,871 $ - $ - 39,871$
Total component unit activities $ 2,214,418 $ - $ 2,254,289 $ - $ 39,871 $ - $ - 39,871$
43,492,512 - 43,492,512 -
28,799,040 - 28,799,040 -
9,392,804 - 9,392,804 -
2,476,318 1,444,135 3,920,453 -
14,544,135 (14,544,135) - -
98,704,809 (13,100,000) 85,604,809 -
26,134,001 34,728,188 60,862,189 39,871
251,526,260 318,079,245 569,605,505 922,310
Prior period adjustment 170,207 (1,971,678) (1,801,471)-
$ 277,830,468 $ 350,835,755 $ 628,666,223 $ 962,181
Other taxes
CITY OF COLLEGE STATION, TEXAS
Statement of Activities
For the Year Ended September 30, 2018
Net (Expense) Revenue and Changes in Net Position
Program Revenues Primary Government
General revenues
Property taxes
Sales taxes
Net position - ending
The notes to financial statements are an integral part of this statement.
Unrestricted investment earnings
Transfers
Total general revenues, special items, and transfers
Change in net position
Net position - beginning
General Debt Service
General
Government
Projects Streets Projects
Other
Governmental
Funds
Total
Governmental
Funds
Assets
Cash and cash equivalents $ 21,315,690 $ 4,492,295 $ 35,675,870 $ 37,299,201 $ 39,691,243 $ 138,474,299
Equity in investments 3,683,863 776,637 6,167,716 6,293,625 6,861,902 23,783,743
Receivable (net of allow for uncollectible) 7,413,536 173,210 - 360,213 896,336 8,843,295
Investments interest receivable 18,187 3,878 30,804 32,085 33,765 118,719
Inventories 44,764 - - - 5,326,560 5,371,324
Prepaid costs 583,754 - - - 1,708 585,462
Loan receivable 95,331 - - - 1,960,079 2,055,410
Total assets $ 33,155,125 $ 5,446,020 $ 41,874,390 $ 43,985,124 $ 54,771,593 $ 179,232,252
Liabilities
Accounts payable $ 1,306,762 $ - $ 1,566,242 $ 3,872,690 $ 2,410,237 $ 9,155,931
Accrued liabilities 2,494,811 - - - 54,111 2,548,922
Interfund payable 95,331 - - - - 95,331
Retainage payable 11,815 - 71,729 744,643 161,576 989,763
Customer construction advances 1,496,379 - - - - 1,496,379
Refundable deposits 77,043 - - - - 77,043
Total liabilities 5,482,141 - 1,637,971 4,617,333 2,625,924 14,363,369
Deferred inflows of resources
Unavailable revenue-loans receivable - - - - 1,960,079 1,960,079
Unavailable revenue-property taxes 216,179 173,210 - - - 389,389
Unavailable revenue-other 666,236 - - 174,516 49,669 890,421
Total deferred inflow of resources 882,415 173,210 - 174,516 2,009,748 3,239,889
Fund balances
Nonspendable 628,518 - - - - 628,518
Restricted - 5,272,810 40,236,419 39,193,275 30,832,562 115,535,066
Committed - - - - 19,303,359 19,303,359
Assigned 2,128,177 - - - - 2,128,177
Unassigned 24,033,874 - - - - 24,033,874
Total fund balances 26,790,569 5,272,810 40,236,419 39,193,275 50,135,921 161,628,994
Total liabilities, deferred inflows of resources, and fund
balances $ 33,155,125 $ 5,446,020 $ 41,874,390 $ 43,985,124 $ 54,771,593 $ 179,232,252
The notes to financial statements are an integral part of this statement.
CITY OF COLLEGE STATION, TEXAS
Balance Sheet
Governmental Funds
September 30, 2018
Total fund balance per balance sheet:161,628,994$
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 303,233,717
Deferred outflows of resources not reported in governmental funds:
Pension contributions after measurement date 4,360,142
Difference in projected and actual earnings - pension 1,310,831
Difference in expected and actual experience - pension 1,128,742
OPEB contributions after measurement date 1,038,570
Deferred charges on debt refundings 1,338,244
9,176,529
Deferred inflows of resources not reported in the governmental funds:
Difference in expected and actual experience - pension 5,204,782
Difference in projected and actual earnings - pension 213,318
Difference in projected and actual earnings - OPEB 1,252
Difference in expected and actual experience - OPEB 478,157
Difference in assumption changes - OPEB 1,943,750
(7,841,259)
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 (14,992,510)$
Due in more than one year (203,785,308) (218,777,818)
Interest payable on long-term debt does not require current financial
resources and is not reported in the governmental funds balance sheet.(925,277)
Allowance for potentially forgiven loans receivable (84,319)
Other long-term assets are not available to pay for current period expenditures
and, therefore, are reported as unavailable revenue in the funds 2,426,412
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 governmental
activities of the government-wide statements of net position (net of the amount allocated
to business-type activities).
Assets 40,129,450
Liabilities (5,484,507)
Net amount allocated to business-type activities (5,651,454) 28,993,489
Net position of governmental activities 277,830,468$
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, 2018
General Debt Service
General
Government
Projects Streets Projects
Other
Governmental
Funds
Total
Governmental
Funds
Revenues
Ad valorem taxes $ 24,073,003 $ 19,089,647 $ - $ - $ 248,885 $ 43,411,535
Sales taxes 28,799,040 - - - - 28,799,040
Other taxes 3,457,485 - - - 5,935,319 9,392,804
Licenses and permits 1,772,959 - - - - 1,772,959
Intergovernmental 910,169 - - 464,767 1,309,766 2,684,702
Charges for services 3,940,837 - - - 7,360,945 11,301,782
Fines, forfeits, and penalties 3,211,536 - - - 168,137 3,379,673
Investment income 449,880 126,466 604,689 699,318 595,965 2,476,318
Rents and royalties 219,538 - - - - 219,538
Contributions 7,361 - - - 1,816,331 1,823,692
Other 642,547 - - 152,800 2,468,319 3,263,666
Total revenues 67,484,355 19,216,113 604,689 1,316,885 19,903,667 108,525,709
Expenditures
Police 22,631,648 - - - 20,888 22,652,536
Fire 19,624,919 - - - - 19,624,919
Public works 9,575,300 - - 694 5,321,442 14,897,436
Parks and recreation 9,129,079 - - - 881,600 10,010,679
Library 1,118,522 - - - - 1,118,522
Planning and development services 3,740,969 - - - 114,175 3,855,144
Information technology 4,488,885 - - - - 4,488,885
Fiscal services 3,954,488 - - - 200,443 4,154,931
General government 6,165,016 - 20,531 - 3,884,725 10,070,272
Contributions 1,380,580 - - - 3,526,538 4,907,118
Capital outlay 319,406 - 4,464,298 21,617,209 6,078,826 32,479,739
Debt service
Principal retirement - 12,435,000 - - - 12,435,000
Interest on long-term debt - 7,024,474 - - - 7,024,474
Debt issuance costs - 9,719 37,177 129,434 63,210 239,540
Total expenditures 82,128,812 19,469,193 4,522,006 21,747,337 20,091,847 147,959,195
Excess (deficit) of revenues over (under)
expenditures (14,644,457) (253,080) (3,917,317) (20,430,452) (188,180) (39,433,486)
Other financing sources (uses)
Issuance of bonds - - 2,950,000 10,275,000 5,005,000 18,230,000
Premium on bonds issued - - 141,532 481,018 268,644 891,194
Transfers in 19,245,943 464,453 1,592,914 - - 21,303,310
Transfers out (3,031,702) - (193,371) (707,618) (3,693,813) (7,626,504)
Total other financing source (uses) 16,214,241 464,453 4,491,075 10,048,400 1,579,831 32,798,000
Net change in fund balances 1,569,784 211,373 573,758 (10,382,052) 1,391,651 (6,635,486)
Fund balances - beginning 22,514,523 5,061,437 39,662,661 49,575,327 48,744,270 165,558,218
Prior period adjustment 2,706,262 - - - - 2,706,262
Fund balances - ending $ 26,790,569 $ 5,272,810 $ 40,236,419 $ 39,193,275 $ 50,135,921 $ 161,628,994
The notes to 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, 2018
Net change in fund balance - total governmental funds (6,635,486)$
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.32,479,739
Governmental funds do not recognize contributed capital assets. However, in the statement of activities the
fair market value of those assets are recognized as revenue, then allocated over their estimated useful
lives and reported as depreciation expense.12,640,010
Depreciation expense on capital assets is reported in the statement of activities but does not require the use
of current financial resources. Therefore, depreciation expense is not reported as expenditures in the
governmental funds.(15,558,900)
In the governmental fund financial statements the proceeds from sale of assets are shown as an increase in
financial resources. In the government-wide financial statements, the gain or loss is calculated and reported.(22,578)
Governmental funds do not recognize the total amount of expense recognized in the government-wide
statement of activities related to the sale of redevelopment home properties.(22,242)
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. 2,232,614
Amortization of deferred charges as the result of debt refundings and bond premiums or discounts are reported
in the government-wide statement of activities but does not require the use of current financial resources.
Therefore, amortized expense is not reported as an expenditure in governmental funds.948,550
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.
Certificates of Obligation issued (18,230,000)$
Bond principal retirement 12,435,000 (5,795,000)
Long-term estimated liabilities are recognized as expenses in the Statement of Activities but are recognized
when current financial resources are used in the government funds. Changes in these long term liabilities
are as follows:
Compensated absences (249,741)
Net pension liability (937,762)
Net Other post employment benefits liability 5,801,001 4,613,498
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.(891,194)
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 2,687,607
Net amount allocated to business activities (542,617)
Change in net position of governmental activities 26,134,001$
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, 2018
Governmental
Activities
Electric Water Wastewater
Other Enterprise
Funds
Total Enterprise
Funds
Internal Service
Funds
Assets
Current assets
Cash and cash equivalents $ 40,721,866 $ 8,885,176 $ 21,644,889 $ 2,124,821 $ 73,376,752 $ 24,605,868
Equity in investments 6,326,154 1,017,663 3,888,345 366,740 11,598,902 4,253,445
Restricted assets
Cash and cash equivalents 5,370,396 2,928,152 275,197 - 8,573,745 -
Equity in investments 1,645,917 1,077,031 - - 2,722,948 -
Receivable (net of allow for uncollectible) 14,088,110 2,198,796 2,020,688 1,259,272 19,566,866 328,580
Loan Receivable - - - 230,000 230,000
Investments interest receivable 39,792 10,236 18,995 1,831 70,854 21,230
Inventories 3,910,228 546,632 30,629 29,327 4,516,816 118,147
Prepaid costs 22,010 6,167 6,167 1,708 36,052 2,500
Total current assets 72,124,473 16,669,853 27,884,910 4,013,699 120,692,935 29,329,770
Noncurrent assets
Equity in joint venture - - - 17,261,241 17,261,241 -
Loan receivable - - - 2,725,000 2,725,000 -
Capital assets
Utility plant 222,867,320 200,384,764 156,465,789 - 579,717,873 -
Buildings - - - 6,349,242 6,349,242 786,525
Machinery and equipment - - - 7,122,744 7,122,744 26,028,488
Less accumulated depreciation (106,344,533) (71,407,868) (68,491,592) (6,895,235) (253,139,228) (16,015,333)
Construction in progress 17,181,902 11,489,375 17,775,318 466 46,447,061 -
Land - - - 690,750 690,750 -
Total capital assets 133,704,689 140,466,271 105,749,515 7,267,967 387,188,442 10,799,680
Total noncurrent assets 133,704,689 140,466,271 105,749,515 27,254,208 407,174,683 10,799,680
Total assets 205,829,162 157,136,124 133,634,425 31,267,907 527,867,618 40,129,450
Deferred outflows of resources
Deferred charge on refunding 873,444 740,500 187,293 328,766 2,130,003 -
Pension 854,200 317,622 308,198 305,828 1,785,848 307,361
OPEB 104,800 51,700 68,469 60,084 285,053 60,088
Total deferred outflows of resources 1,832,444 1,109,822 563,960 694,678 4,200,904 367,449
Total assets and deferred outflows of resources 207,661,606 158,245,946 134,198,385 31,962,585 532,068,522 40,496,899
Liabilities
Current liabilities
Accounts payable 7,947,320 1,046,811 1,522,451 344,952 10,861,534 442,328
Accrued liabilities 506,735 114,226 110,444 173,073 904,478 104,029
Unearned revenue - - - 132,534 132,534 -
Compensated absences 26,151 10,772 12,826 9,293 59,042 11,594
Retainage payable 141,498 590,455 437,858 - 1,169,811 -
Claims payable - - - - - 3,483,498
Accrued interest payable 285,933 262,553 236,111 17,928 802,525 -
Refundable deposits 2,490,543 249,083 19,300 - 2,758,926 -
Certificates of obligation 2,435,213 1,801,105 1,505,216 230,000 5,971,534 -
General obligation bonds 1,850,385 2,748,251 1,988,918 244,408 6,831,962 -
Total current liabilities 15,683,778 6,823,256 5,833,124 1,152,188 29,492,346 4,041,449
Noncurrent liabilities
Certificates of obligation 32,260,337 27,033,560 32,348,820 490,000 92,132,717 -
General obligation bonds 20,839,480 21,892,876 10,005,801 2,759,530 55,497,687 -
Compensated absences 317,314 130,705 155,632 112,762 716,413 140,679
Post employment benefits 498,336 245,845 325,579 285,713 1,355,473 285,712
Net pension liability 2,663,863 1,004,434 959,914 993,618 5,621,829 1,016,667
Total noncurrent liabilities 56,579,330 50,307,420 43,795,746 4,641,623 155,324,119 1,443,058
Total liabilities 72,263,108 57,130,676 49,628,870 5,793,811 184,816,465 5,484,507
Deferred inflows of resources
Pension 680,956 238,319 270,915 212,484 1,402,674 202,440
OPEB 244,516 120,627 159,751 140,188 665,082 140,191
Total deferred inflows of resources 925,472 358,946 430,666 352,672 2,067,756 342,631
Total liabilities and deferred inflows of resources 73,188,580 57,489,622 50,059,536 6,146,483 186,884,221 5,827,138
Net Position
Net investment in capital assets 79,884,765 89,229,524 59,531,506 6,823,616 235,469,411 10,799,680
Restricted for
BVSWMA Investment - - - 17,261,241 17,261,241 -
Unrestricted 54,588,261 11,526,800 24,607,343 1,731,245 92,453,649 23,870,081
Total net position $ 134,473,026 $ 100,756,324 $ 84,138,849 $ 25,816,102 345,184,301 $ 34,669,761
Adjustment to reflect the consolidation of internal services fund activities related to enterprise funds 5,651,454
Net position of business-type activities 350,835,755$
The notes to financial statements are an integral part of this statement.
CITY OF COLLEGE STATION, TEXAS
Statement of Net Position
Proprietary Funds
September 30, 2018
Business-type Activities
Governmental
Activities
Electric Water Wastewater
Other Enterprise
Funds
Total Enterprise
Funds
Internal Service
Funds
Operating revenues
Charges for services $ 102,511,712 $ 16,119,429 $ 17,482,702 $ 10,616,137 $ 146,729,980 $ 11,894,699
Fines, forfeits, and penalties - - - 300,551 300,551 -
Premiums - - - - - 14,371,014
Rents and royalties - 4,269 - - 4,269 -
Other 2,349,369 155,775 15,191 53,011 2,573,346 482,261
Total operating revenue 104,861,081 16,279,473 17,497,893 10,969,699 149,608,146 26,747,974
Operating expenses
Electric operations 66,041,602 - - - 66,041,602 -
Salaries and benefits - 2,751,019 2,624,323 2,541,961 7,917,303 2,886,753
Supplies - 698,490 627,508 452,644 1,778,642 1,203,916
Maintenance - 133,656 211,296 760,891 1,105,843 49,225
Purchased professional services - 388,023 129,610 1,097,445 1,615,078 756,977
Purchased property services - 1,435,614 1,156,421 1,406,641 3,998,676 53,963
Other purchased services - 319,964 476,820 1,916,163 2,712,947 1,043,414
Claims - - - - - 11,380,948
Administration fees - - - - - 221,723
Contributions - - - - - 1,595,143
Premiums - - - - - 1,597,448
Depreciation 7,513,022 5,219,455 5,728,788 1,176,424 19,637,689 2,763,309
Other 541,807 216,040 75,880 78,525 912,252 1,015,496
Total operating expenses 74,096,431 11,162,261 11,030,646 9,430,694 105,720,032 24,568,315
Operating income 30,764,650 5,117,212 6,467,247 1,539,005 43,888,114 2,179,659
Nonoperating revenues (expenses)
Investment income 692,373 231,966 338,212 181,584 1,444,135 427,036
Gain (loss) on disposal of assets (261,738) (189,866) (600,201) - (1,051,805) 140,181
Earnings in joint venture - - - 1,542,900 1,542,900 -
Interest payments (2,205,963) (2,168,794) (1,555,232) (203,903) (6,133,892) -
Debt issuance cost (80,059) (42,606) (118,755) - (241,420) -
Other, net (1,004,224) 58,851 387,204 (223,057) (781,226) (926,598)
Total nonoperating revenues (expenses) (2,859,611) (2,110,449) (1,548,772) 1,297,524 (5,221,308) (359,381)
Income before capital contributions and transfers 27,905,039 3,006,763 4,918,475 2,836,529 38,666,806 1,820,278
Capital contributions and transfers
Capital contributions 1,097,232 4,251,724 4,165,114 548,830 10,062,900 -
Transfers in 1,793,420 1,554 (241,155) - 1,553,819 928,674
Transfers out (9,647,251) (2,741,312) (2,030,897) (1,678,494) (16,097,954) (61,345)
Total capital contributions and transfers (6,756,599) 1,511,966 1,893,062 (1,129,664) (4,481,235) 867,329
Change in net position 21,148,440 4,518,729 6,811,537 1,706,865 34,185,571 2,687,607
Net position - beginning 114,493,282 96,466,765 77,585,932 24,424,429 32,260,709
Prior period adjustment (1,168,696) (229,170) (258,620) (315,192) (1,971,678) (278,555)
Net position - ending $ 134,473,026 $ 100,756,324 $ 84,138,849 $ 25,816,102 $ 34,669,761
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds 542,617
Change in net position of business-type activities $ 32,756,510
The notes to 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 Year Ended September 30, 2018
Business-type Activities
Governmental
Activities
Other Total Internal
Enterprise Enterprise Service
Electric Water Wastewater Funds Funds Funds
Cash flows from operating activities:
Cash received from customers 103,712,433$ 15,955,362$ 17,359,487$ 10,801,913$ 147,829,195$ 26,480,224$
Cash payments to suppliers for goods and services (60,281,908) (2,106,396) (2,143,118) (5,428,324) (69,959,746) (15,125,962)
Cash payments to employees for services (8,336,884) (3,412,547) (3,380,318) (3,150,227) (18,279,976) (3,493,371)
Customer deposits received (returned)(369,311) (49,243) 3,330 - (415,224) -
Cash paid for miscellaneous services (541,807) (216,040) (75,880) (78,525) (912,252) (2,834,667)
Cash received for miscellaneous revenues 1,499,146 - - - 1,499,146 -
Net cash provided (used) by operating activities 35,681,669 10,171,136 11,763,501 2,144,837 59,761,143 5,026,224
Cash flows from noncapital financing activities:
Cash (paid) for received from miscellaneous non operating services (1,004,224) 4,318 387,204 (223,055) (835,757) 146,974
Transfers in from other funds 1,793,420 1,554 (241,155) - 1,553,819 928,674
Transfers out to other funds (9,647,250) (2,741,312) (2,030,897) (1,678,494) (16,097,953) (61,345)
Net cash provided (used) by noncapital financing activities (8,858,054) (2,735,440) (1,884,848) (1,901,549) (15,379,891) 1,014,303
Cash flows from capital and related financing activities:
Acquisition and construction of capital assets (13,647,207) (15,002,937) (16,140,251) (687,429) (45,477,824) (2,393,053)
Capital grants and contributions 1,097,232 4,251,724 4,165,114 548,830 10,062,900 -
Proceeds from sale of assets 8,697 14,931 27,886 - 51,514 207,697
BVSWMA loan payments received 445,000 445,000 -
Bond Issuance Costs (80,059) (42,606) (118,755) - (241,420) -
Proceeds received from the issuance of certificates of obligation 6,381,157 3,612,981 10,119,792 - 20,113,930 -
Principal paid on certificates of obligation and general obligation bonds (3,705,000) (3,955,000) (3,030,000) (425,000) (11,115,000) -
Interest paid on certificates of obligation and general obligation bonds (2,205,963) (2,168,794) (1,555,231) (203,903) (6,133,891) -
Net cash provided (used) by capital and related financing activities (12,151,143) (13,289,701) (6,531,445) (322,502) (32,294,791) (2,185,356)
Cash flows from investing activities:
Purchase of investments (4,251,833) (452,371) (1,738,310) (133,047) (6,575,561) (2,825,495)
Proceeds from sale and maturities of investment securities 429,243 450,698 221,678 22,043 1,123,662 247,985
Investment income 664,120 227,551 325,812 180,464 1,397,947 413,453
Net cash provided (used) by investing activities (3,158,470) 225,878 (1,190,820) 69,460 (4,053,952) (2,164,057)
Net increase (decrease) in cash and cash equivalents 11,514,002 (5,628,127) 2,156,388 (9,754) 8,032,509 1,691,114
Cash and cash equivalents, Oct. 1 34,578,260 17,441,455 19,763,698 2,134,575 73,917,988 22,914,754
Cash and cash equivalents, Sept. 30 46,092,262$ 11,813,328$ 21,920,086$ 2,124,821$ 81,950,497$ 24,605,868$
Reconciliation of operating income to net cash
Provided by operating activities:
Operating income 30,764,649$ 5,117,212$ 6,467,247$ 1,539,005$ 43,888,113$ 2,179,659$
Adjustment to reconcile operating income to net
cash provided (used) by operating activities:
Depreciation 7,513,022 5,219,455 5,728,788 1,176,424 19,637,689 2,763,309
Amortization of Bond Premium (Discount)(434,117) (507,869) (345,955) (34,408) (1,322,349) -
Bad debt expense 475,426 33,781 74,700 38,637 622,544 -
Inventory loss 65,904 2,086 (702) 8,262 75,550 -
(Increases) decreases in assets and deferred outflows:
Change in accounts receivable (1,416,615) (357,892) (189,801) (216,183) (2,180,491) (267,750)
Change in inventory (989,859) (130,828) 3,274 (19,913) (1,137,326) 5,650
Change in prepaids (22,010) (6,167) (6,167) (1,708) (36,052) -
Change in deferred outflow on pensions 310,170 116,981 115,873 106,729 649,753 103,384
Change in deferred outflow on OPEB (104,800) (51,700) (68,469) (60,084) (285,053) (60,088)
Change in deferred charge on refunding 116,578 111,631 38,900 (179,592) 87,517 -
Increases (decreases) in liabilities and deferred inflows:
Change in accounts payable 473,538 669,823 137,849 119,646 1,400,856 (595,709)
Change in retainage payable 19,447 322,905 157,169 - 499,521 -
Change in unearned revenues / claims payable 20,769 20,769 1,230,129
Change in refundable deposits (369,311) (49,243) 3,330 - (415,224) -
Change in accrued liabilities (19,379) 10,273 13,405 20,292 24,591 10,323
Change in accrued vacation (1,537) 12,444 2,245 (6,863) 6,289 16,428
Change in accrued interest payable 12,846 (15,681) 39,857 (5,024) 31,998 -
Change in OPEB (761,030) (375,442) (497,207) (436,323) (2,070,002) (436,322)
Change in net pension liability (1,478,412) (538,148) (533,053) (490,994) (3,040,607) (475,602)
Change in deferred inflow on pensions 1,282,643 466,888 462,467 425,977 2,637,975 412,622
Change in deferred inflow on OPEB 244,516 120,627 159,751 140,188 665,082 140,191
Total adjustments 4,917,020 5,053,924 5,296,254 605,832 15,873,030 2,846,565
Net cash provided (used) by operating activities 35,681,669$ 10,171,136$ 11,763,501$ 2,144,837$ 59,761,143$ 5,026,224$
Noncash investing, capital and financing activities:
For the fiscal year ended September 30, 2018, the City of College Station's Enterprise funds received $8,676,165 of noncash capital contributions from developers and assets with a net value of $837,905
from the Governmental Activities.
Reconciliation of total cash and cash equivalents:
Current assets - cash and cash equivalents 40,721,866$ 8,885,176$ 21,644,889$ 2,124,821$ 73,376,752 24,605,868$
Restricted assets - cash and cash equivalents 5,370,396 2,928,152 275,197 - 8,573,745 -
Total cash and cash equivalents 46,092,262$ 11,813,328$ 21,920,086$ 2,124,821$ 81,950,497$ 24,605,868$
The notes to the financial statements are an integral part of this statement.
Business-type Activities - Enterprise Funds
CITY OF COLLEGE STATION, TEXAS
Statement of Cash Flows
Proprietary Funds
For the Fiscal Year Ended September 30, 2018
Assets
Investments 1,521,285$
Total Assets 1,521,285
Liabilities
Payables -
Total liabilities -
Net position restricted for postemployment benefits
other than pensions 1,521,285$
The notes to the financial statements are an integral part of this statement.
CITY OF COLLEGE STATION, TEXAS
Statement of Net Position
Fiduciary Funds
December 31, 2017
Other Post Employment Benefit (OPEB) Trust
Additions
Employer contributions 2,081,852$
Investment earnings
Net increase in fair value of investments -
Interest and dividends 266
Net investment income 28,112
Total additions 2,110,230
Deductions
Benefit payments 588,043
Administrative expenses 902
Total deductions 588,945
Net position restricted for postemployment benefits
other than pensions
Net Position - Beginning 1,474,075
Prior Period Adjustment (1,474,075)
Net Position - 12/31/2017 1,521,285$
The notes to the financial statements are an integral part of this statement.
CITY OF COLLEGE STATION, TEXAS
Statement of Changes in Net Position
Fiduciary Funds
For the Measurement Period Ended December 31, 2017
Other Post Employment Benefit (OPEB) Trust
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Financial Reporting Entity
The City of College Station, Texas (“City”) 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 accompanying financial statements present the City and its component unit, which is an entity for
which the City is considered to be financially accountable. Blended component units, although legally
separate entities, are, in substance, part of the City’s operations and are appropriately presented as funds
of the primary government. Discretely presented component units, on the other hand, are reported in a
separate column in the government-wide financial statements to emphasize that they are legally
separate from the City. Based on these criteria, the financial information of the following entities has
been blended or discretely presented within the financial statements.
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).
Blended Component Units
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 (Spring Creek LGC) promotes, develops, and
encourages employment and economic development to be anchored by the City of College Station’s next
business park. The corporation is governed by a Board of Directors appointed by the City Council, with
the initial board consisting of five Directors. The Mayor serves as President and the remaining directors
are City officers or residents who have special expertise that would be beneficial to the corporation. A
total of three City Council members are on the Board of Directors of Spring Creek LGC. The corporation
has the power to acquire, own, and dispose of real estate subject to the approval of the City Council.
Since the elected officials of the City are financially accountable for Spring Creek LGC, and the primary
purpose of the entity is to provide a service to the City, Spring Creek LGC is considered a blended
component unit. Spring Creek LGC is located in the Supplementary Information Section as part of the
General Fund(s) Statements.
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
Discretely Presented Component Units
The Brazos Valley Convention & Visitors Bureau d/b/a Experience Bryan College Station, is a non-profit
corporation originally formed to market events within the Bryan-College Station area. The primary
purpose of the entity is to provide a service to the Cities of both Bryan and College Station by marketing
tourist events. This 18 board members included elected officials, hoteliers, and business owners,
representatives from Texas A&M University, the local media, and tourist attractions. On August 29, 2017,
Experience BCS adopted a new set of bylaws that restructured the makeup of the board, cutting its size
from eighteen members to nine members. Under the new bylaws, six of the nine Experience BCS’s board
of directors are appointed by and serve at the discretion of the College Station City Council. The members
of the new board were ratified by Experience BCS at its board meeting on October 30, 2017. The City of
College Station, along with the City of Bryan, now also directs and approves the marketing work plan of
the entity based on changes to the annual funding agreement. The new annual funding agreement was
executed November 8, 2017.
Based on the control and funding changes at Experience BCS that occurred in October and November
2017, as well as the City’s existing financial accountability for the entity, Experience BCS and its financial
statements is disclosed as a discretely presented component unit. As a discretely presented component
unit, Experience BCS will be separately presented in both the Statement of Net Position and Statement
of Activities and complete financial statement information will be made publicly available from the
Experience BCS entity.
Fiduciary Fund
The Other Post Employment Benefit (OPEB) Trust Fund reports resources that are held in trust for the
members and beneficiaries of the City’s other postemployment benefit plan. These assets are excluded
from the government-wide financial statements as they cannot be used to support the government's own
programs.
Cooperative Efforts
In January 2010, the City of College Station entered into an Interlocal Cooperation Agreement with the
City of Bryan to create a local government corporation under Subchapter D of Chapter 431, Texas
Transportation Code, to be known as the Brazos Valley Solid Waste Management Agency, Inc. (BVSWMA,
Inc.). The purpose of this Corporation is to finance, construct, own, manage, and operate the existing and
future municipal solid waste landfill facilities on behalf of the two cities. The City’s one-half undivided
interest in BVSWMA, Inc. is reported in the Sanitation Fund (see Note 21).
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. As a general rule, the effect of interfund
activity has been eliminated from the government-wide financial statements. Exceptions to the general
rule are payments-in-lieu-of taxes, payments for use of rights-of-way, and other charges between the
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
City’s electric, water, and wastewater functions and various other functions of the government.
Elimination of these charges would distort the direct costs and program revenues reported for the various
functions concerned. 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.
In fund financial statements (the Governmental Funds Balance Sheet and Statement of Revenues,
Expenditures, and Changes in Fund Balances; the Proprietary Funds Statement of Net Position, Statement
of Revenues, Expenses, and Changes in Net Position, and Statement of Cash Flows; and the Fiduciary
Fund Statement of Net Position and Statement of Changes in Net Position), the City segregates
transactions related to certain functions or activities in separate funds in order to aid financial
management and to demonstrate legal compliance. Separate financial statements are presented for
governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from
the government-wide financial statements. Major individual governmental funds and major individual
enterprise funds are reported as separate columns in the fund financial statements. Non-major funds are
aggregated and presented in a single column in the appropriate governmental fund and proprietary fund
statements.
Governmental funds are those funds through which most governmental functions are typically financed.
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 General Government Projects Fund accounts for the cost of new building construction, building
improvements, technology, and equipment made with funds provided by proceeds from the sale of
general obligation bonds, certificates of obligation, and other funding sources.
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
The Streets Projects Fund accounts for the costs of new street construction, street and transportation
improvements, and traffic signalization made with funds provided primarily by proceeds from the sale
of general obligation bonds and sale of certificates of obligation and by investing those proceeds.
Proprietary funds include enterprise and internal service funds and are accounted for using the economic
resources measurement focus and the accrual basis of accounting. The accounting objectives are a
determination of net income, financial position, and cash flow. All assets and liabilities are included in the
Statement of Net Position.
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 solid waste fees, while internal service
funds’ revenues are for equipment purchase transactions, utility customer service, and risk management
charges. Operating expenses for enterprise funds and internal service funds include the cost of services,
administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this
definition are reported as non-operating revenues and expenses. At fiscal year-end, the City accrues
estimated unbilled revenues (excluding fuel expense) for electric, water, and wastewater customers.
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 within the City’s service territory. 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 within the City’s service territory. 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 maintenance, new construction, and financing and related debt services. Billing and collection
services are accounted for as an internal service fund.
The City reports the following other 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
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
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.
Fiduciary Fund accounts for assets held in trust for the members and beneficiaries of the City’s other
postemployment benefit plan. These assets are excluded from the government-wide financial
statements as they cannot be used to support the government's own programs.
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.
Measurement Focus and Basis of Accounting
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.
The government-wide financial statements and fund financial statements for proprietary funds and
fiduciary fund are reported using the economic resources measurement focus and the accrual basis of
accounting. All assets and liabilities (whether current or noncurrent) are included on the Statement of
Net Position. The operating statements present increases (revenues) and decreases (expenses) in net
position. Revenues are recorded when earned and expenses are recorded when a liability is incurred,
regardless of the timing of related cash flows.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized when they are both
measurable and available. Revenues are measurable when the amount of the transaction can be
determined. Revenues are available when they are collectible within the current period or soon enough
thereafter to pay liabilities of the current period.
The City considers tax revenues to be available if they are collected within sixty (60) days of the end of
the current fiscal period. A one hundred twenty (120) day availability period is used for recognition of all
other governmental fund revenues. Expenditures are recorded when a liability is incurred. However, debt
service expenditures, as well as expenditures related to vacation, claims, and judgments are recorded
only when payment is due.
Property taxes are recognized as revenues in the year for which they are levied. Revenues susceptible to
accrual are property taxes, franchise fees, licenses, charges for services, investment income, and
intergovernmental revenues. Sales taxes collected and held by the State at year end on behalf of the City
are also recognized as revenue. Grants and similar items are recognized as revenue as soon as all eligibility
requirements imposed by the provider have been met. All other revenue items are considered to be
measurable and available when cash is received by the City.
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
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) includes demand accounts, investment pools,
money market mutual funds, certificates of deposit, and agency securities notes with original
maturities of three months or less when purchased.
The City uses a pooling method to account for cash and cash equivalents. All cash, except for petty
cash accounts, is deposited with the City’s depository bank in a pooled, interest bearing account or it
is invested. 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.
Investments
Investments are made in accordance with the City’s Investment Policy, which was adopted by the City
Council in October 2017 for the fiscal year ending September 30, 2018. This policy is applicable to all
City funds and permits investment in obligations of the U.S. Government or its agencies, repurchase
agreements, commercial paper, certificates of deposit, public funds investment pools, and money
market mutual funds. This policy states that the City 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.
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
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 are held in the City’s name in a safekeeping account at The Bank of New York.
The City uses a pooling method to account for investments. Investments of all funds may consist of
Agency securities, money market mutual funds, certificates of deposit, and investments in public
funds investment pools. 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.
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, GASB Statement No.
72, Fair Value Measurement and Application, GASB Statement No. 59, Financial Instruments Omnibus,
and GASB Statement No. 79, Certain External Investment Pools and Pool Participants. Additional
information related to investments can be found in Note 7.
The City of College Station also has an irrevocable trust relating to its OPEB obligations. The
investment strategy for this trust will be dictated by the City’s Investment Committee. This trust does
not fall under the Texas Public Funds Investment Act.
Inventories
Inventories include stock and parts that are on hand and will be utilized in conducting business within
the next year. All inventories are valued at cost, using the average cost method. Inventories owned
by the Enterprise and Internal Service Funds are accounted for using the consumption method (an
expense is recorded when the inventory item is used).
Inventories also include 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 accounted for using the
purchase method.
Prepaids
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded
as prepaid items using the purchases method in both government-wide and fund financial
statements.
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
Interfund Transactions and Receivables and Payables
Short-term amounts owed between funds are classified as “Interfund receivable and Interfund
payable”. Any residual balances outstanding between the governmental activities and business-type
activities are reported in the government-wide financial statements as “internal balances”.
Transactions between Funds
Authorized transfers are treated as interfund transfers and are included in the results of both
governmental and proprietary funds.
The City allocates to the proprietary funds a percentage of administrative costs paid through the
general fund, internal service funds, and other governmental funds.
Restricted Assets
Proceeds of general obligation bonds and certificates of obligations 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 21.
Capital Assets
Capital assets include property, plant, equipment, and infrastructure assets reported in the applicable
governmental or business-type activities columns in the government-wide financial statements.
Capital assets are defined as assets with an initial, individual cost of more than $5,000 and an
estimated useful life in excess of three years. Assets are recorded at historical cost or estimated
historical cost if purchased or constructed. To the extent the construction is performed by the City,
the cost includes payroll and related costs and certain general and administrative expenses. Interest
is not capitalized during construction of capital assets. Donated capital assets are recorded at
estimated acquisition cost on the date of donation. Repairs and maintenance are recorded as
expenses. Renewals and betterments are capitalized.
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. Interest is not capitalized in these accounts because interest is recovered
concurrently in the proprietary fund rate structure.
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
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
The City accrues vacation when the liability is incurred. 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. For the governmental activities, accrued vacation is
generally liquidated by the general fund.
Employees are credited with vacation at rates of ten (10) to twenty (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 three years. Classified employees in the police department earn vacation at the rate of
15 days (120 hours) per full year until the employee reaches 18 years of employment, at which time
the rate of accrual becomes the same rate as that for other City employees. Classified employees in
the fire department earn vacation at the rate of 7 shifts (168 hours) per full year until the employee
reaches 18 years of employment, at which time the rate of accrual becomes a maximum of 9 shifts
(216 hours) per year. Upon termination, all employees are paid for any accrued vacation not taken,
up to the three year maximum.
Employees who have met the overtime eligibility requirements in accordance with the Fair Labor
Standards Act may choose to receive compensatory time off in lieu of overtime pay. The accrual of
compensatory time is made at a rate of one and one-half times the number of eligible overtime hours
and is limited to sixty (60) hours, unless otherwise specified by the employee’s department. After
accruing sixty (60) hours of compensatory time off, an employee will receive overtime pay for excess
hours in the designated work week. Upon termination, non-exempt employees are paid for all
accrued compensatory time, up to the sixty (60) hours maximum.
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. The City does not pay employees for unused
accumulated sick leave; therefore, no liability has been recorded in the financial statements related
to sick leave as unused leave is not paid at termination.
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
Changes in compensated absences for the year ending September 30, 2018 were as follows:
Activity Type
Beginning
Balance
Earned
Paid
Total Ending
Balance
Governmental $ 3,058,903 $ 1,884,051 $ (1,617,881) $ 3,325,073
Business-Type 769,166 438,835 (432,546) 775,455
Total $ 3,828,069 $ 2,322,886 $ (2,050,427) $ 4,100,528
Activity Type
Amount Due
Within
One Year
Amount Due
Greater Than
One Year
Governmental $ 253,165 $ 3,071,908
Business-Type 59,042 716,413
Total $ 312,207 $ 3,788,321
Long-Term Obligations
In the accompanying financial statements, 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 effective interest method. Bonds payable are reported net of the applicable
bond premium or discount and deferred amounts on refunding.
In the Schedule of Revenue, Expenditures and Changes in Fund Balance and supplementary
information schedules, bond premiums and discounts, as well as bond issuance costs are recognized
during the period issued. The face amount of debt issued and premiums received on debt issuances
are reported as other financing sources. Discounts on debt issuances are reported as other financing
uses. Issuance costs are reported as debt service expenditures.
Bond Issuance Expenses
According to the financial reporting requirements of GASB Statement No. 65, Items Previously
Reported as Assets and Liabilities, bond issuance expenses are to be expensed as incurred. Issuance
expenses are reported on the Statement of Activities on the Government-Wide Financial Statements
for Governmental Activities in interest on long-term debt expense and on the Statement of Revenues,
Expenditures, and Changes in Fund Balances in debt issuance costs. These amounts totaled $239,540
for the fiscal year ended September 30, 2018. Issuance expenses for Business-Type Activities are
reported on the Statement of Revenues, Expenses and Changes in Net Position in interest expense
and totaled $241,420 for the fiscal year ended September 30, 2018.
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
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
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.
Detailed information about the pension plan’s Fiduciary Net Position is available in a separately-
issued TMRS financial report on the internet at www.tmrs.com.
Other Post-Employment Benefits (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows
of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the
City’s plan and additions to/deductions from City’s fiduciary net position have been determined on
the same basis as they are reported by the City. For this purpose, the City recognizes benefit payments
when due and payable in accordance with the benefit terms. The OPEB Plan’s investments are
measured at the equivalent of Net Assets Value (NAV).
Fund Equity
In the fund financial statements, governmental funds report fund balance in classifications as follows:
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, may 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.
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
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.
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. 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
For the fiscal year ended September 30, 2018, the City adopted the following pronouncements:
GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than
Pensions. The primary objective of this statement is to improve accounting and financial reporting by
state and local governments for postemployment benefits other than pensions (other
postemployment benefits or OPEB). It also improves information provided by state and local
governmental employers about financial support for OPEB that is provided by other entities. The
statements result from a comprehensive review of the effectiveness of existing standards of
accounting and financial reporting for all postemployment benefits (pensions and OPEB) with regard
to providing decision-useful information, supporting assessments of accountability and inter period
equity, and creating additional transparency. Statement number 75 replaces the requirements of
Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
Other Than Pensions, as amended, and Statement No. 57, OPEB Measurements by Agent Employers
and Agent Multiple-Employer Plans, for OPEB. Statement No. 75, Accounting and Financial Reporting
for Postemployment Benefits Other Than Pensions, establishes new accounting and financial reporting
requirements for OPEB plans and is explained in more detail in Note 23 of these financial statements.
This new guidance is effective for fiscal years beginning after June 15, 2017. The adoption of this
statement required the City to restate its net position.
GASB Statement No. 81, Irrevocable Split-Interest Agreements. The objective of this Statement is to
improve accounting and financial reporting for irrevocable split-interest agreements by providing
recognition and measurement guidance for situations in which a government is a beneficiary of the
agreement. Split-interest agreements are a type of giving agreement used by donors to provide
resources to two or more beneficiaries, including governments. Split-interest agreements can be
created through trusts—or other legally enforceable agreements with characteristics that are
equivalent to split-interest agreements—in which a donor transfers resources to an intermediary to
hold and administer for the benefit of a government and at least one other beneficiary. Examples of
these types of agreements include charitable lead trusts, charitable remainder trusts, and life-
interests in real estate. The requirements of this Statement are effective for financial statements for
periods beginning after December 15, 2016, and should be applied retroactively. As applicable, the
City implemented this guidance in FY 2018.
GASB Statement No. 85, Omnibus 2017. The objective of this Statement is to address practice issues
that have been identified during implementation and application of certain GASB Statements. This
Statement addresses a variety of topics including issues related to blending component units,
goodwill, fair value measurement and application, and postemployment benefits (pensions and other
postemployment benefits [OPEB]). The requirements of this Statement are effective for reporting
periods beginning after June 15, 2017. As applicable, the City implemented this guidance in FY 2018.
GASB Statement No. 86, Certain Debt Extinguishment Issues. Statement No. 7, Advance Refundings
Resulting in Defeasance of Debt, requires that debt be considered defeased in substance when the
debtor irrevocably places cash or other monetary assets acquired with refunding debt proceeds in a
trust to be used solely for satisfying scheduled payments of both principal and interest of the defeased
debt. The trust also is required to meet certain conditions for the transaction to qualify as an in-
substance defeasance. This Statement establishes essentially the same requirements for when a
government places cash and other monetary assets acquired with only existing resources in an
irrevocable trust to extinguish the debt. However, in financial statements using the economic
resources measurement focus, governments should recognize any difference between the
reacquisition price (the amount required to be placed in the trust) and the net carrying amount of the
debt defeased in substance using only existing resources, as a separately identified gain or loss in the
period of the defeasance. The requirements of this Statement are effective for reporting periods
beginning after June 15, 2017. As applicable, the City implemented this guidance in FY 2018.
The following guidance statements issued by GASB are each effective for FY 2019 or beyond and are
expected to be applicable to the City. The impact of these standards on the City’s net position is unknown
at this time:
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
GASB Statement No. 83, Certain Asset Retirement Obligations. This statement addresses accounting
and financial reporting for certain asset retirement obligations (AROs). An ARO is a legally enforceable
liability associated with the retirement of a tangible capital asset. A government that has legal
obligations to perform future asset retirement activities related to its tangible capital assets should
recognize a liability based on the guidance in this statement. This statement establishes criteria for
determining the timing and pattern of recognition of a liability and a corresponding deferred outflow
of resources for AROs. This statement requires that recognition occur when the liability is both
incurred and reasonably estimable. The determination of when the liability is incurred should be
based on the occurrence of external laws, regulations, contracts, or court judgments, together with
the occurrence of an internal event that obligates a government to perform asset retirement
activities. Laws and regulations may require governments to take specific actions to retire certain
tangible capital assets at the end of the useful lives of those capital assets, such as decommissioning
nuclear reactors and dismantling and removing sewage treatment plants. Other obligations to retire
tangible capital assets may arise from contracts or court judgments. Internal obligating events include
the occurrence of contamination, placing into operation a tangible capital asset that is required to be
retired, abandoning a tangible capital asset before it is placed into operation, or acquiring a tangible
capital asset that has an existing ARO. The requirements of this statement are effective for reporting
periods beginning after June 15, 2018. Therefore, if applicable, the City will implement this guidance
in FY 2019.
GASB Statement No. 84, Fiduciary Activities. This Statement establishes criteria for identifying
fiduciary activities of all state and local governments. The focus of the criteria generally is on (1)
whether a government is controlling the assets of the fiduciary activity and (2) the beneficiaries with
whom a fiduciary relationship exists. Separate criteria are included to identify fiduciary component
units and postemployment benefit arrangements that are fiduciary activities. An activity meeting the
criteria should be reported in a fiduciary fund in the basic financial statements. Governments with
activities meeting the criteria should present a statement of fiduciary net position and a statement of
changes in fiduciary net position. An exception to that requirement is provided for a business-type
activity that normally expects to hold custodial assets for three months or less. This Statement
describes four fiduciary funds that should be reported, if applicable: (1) pension (and other employee
benefit) trust funds, (2) investment trust funds, (3) private-purpose trust funds, and (4) custodial
funds. The requirements of this Statement are effective for reporting periods beginning after
December 15, 2018. Therefore, if applicable, the City will implement this guidance in FY 2020.
GASB Statement No. 87, Leases. The objective of this Statement is to better meet the information
needs of financial statement users by improving accounting and financial reporting for leases by
governments. This Statement requires recognition of certain lease assets and liabilities for leases that
previously were classified as operating leases and recognized as inflows of resources or outflows of
resources based on the payment provisions of the contract. It establishes a single model for lease
accounting based on the foundational principle that leases are financings of the right to use an
underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an
intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a
deferred inflow of resources. This is a significant change in accounting principles and may impact the
net position of the City. The requirements of this Statement are effective for reporting periods
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
beginning after December 15, 2019. Therefore, as applicable, the City will implement this guidance in
FY 2021.
GASB Statement No. 88, Certain Disclosures Related to Debt, Including Direct Borrowings and Direct
Placements. The primary objective of this Statement is to improve the information that is disclosed
in notes to government financial statements related to debt, including direct borrowings and direct
placements. It also clarifies which liabilities governments should include when disclosing information
related to debt. This Statement defines debt for purposes of disclosure in notes to financial
statements as a liability that arises from a contractual obligation to pay cash (or other assets that may
be used in lieu of cash) in one or more payments to settle an amount that is fixed at the date the
contractual obligation is established. This Statement requires that additional essential information
related to debt be disclosed in notes to financial statements, including unused lines of credit; assets
pledged as collateral for the debt; and terms specified in debt agreements related to significant events
of default with finance-related consequences, significant termination events with finance-related
consequences, and significant subjective acceleration clauses. For notes to financial statements
related to debt, this Statement also requires that existing and additional information be provided for
direct borrowings and direct placements of debt separately from other debt. The requirements of this
Statement are effective for reporting periods beginning after June 15, 2018. Therefore, if applicable,
the City will implement this guidance in FY 2019.
GASB Statement No. 89, Accounting for Interest Cost Incurred Before the end of a Construction Period
The objectives of this Statement are (1) to enhance the relevance and comparability of information
about capital assets and the cost of borrowing for a reporting period and (2) to simplify accounting
for interest cost incurred before the end of a construction period.
This Statement establishes accounting requirements for interest cost incurred before the end of a
construction period. This Statement requires that interest cost incurred before the end of a
construction period be recognized as an expense in the period in which the cost is incurred for
financial statements prepared using the economic resources measurement focus. As a result, interest
cost incurred before the end of a construction period will not be included in the historical cost of a
capital asset reported in a business-type activity or enterprise fund. This Statement also reiterates
that in financial statements prepared using the current financial resources measurement focus,
interest cost incurred before the end of a construction period should be recognized as an expenditure
on a basis consistent with governmental fund accounting principles. The requirements of this
Statement are effective for reporting periods beginning after December 15, 2019 and the
requirements of this Statement should be applied prospectively. As applicable, the City will
implement this guidance in FY 2020.
GASB Statement No. 90, Majority Equity Interests – an amendment of GASB Statements No.14 and
No. 61. The primary objectives of this Statement are to improve the consistency and comparability
of reporting a government’s majority equity interest in a legally separate organization and to improve
the relevance of financial statement information for certain component units. It defines a majority
equity interest and specifies that a majority equity interest in a legally separate organization should
be reported as an investment if a government’s holding of the equity interest meets the definition of
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
an investment. A majority equity interest that meets the definition of an investment should be
measured using the equity method, unless it is held by a special-purpose government engaged only
in fiduciary activities, a fiduciary fund, or an endowment (including permanent and term
endowments) or permanent fund. Those governments and funds should measure the majority equity
interest at fair value.
For all other holdings of a majority equity interest in a legally separate organization, a government
should report the legally separate organization as a component unit, and the government or fund
that holds the equity interest should report an asset related to the majority equity interest using the
equity method. This Statement establishes that ownership of a majority equity interest in a legally
separate organization results in the government being financially accountable for the legally separate
organization and, therefore, the government should report that organization as a component unit.
This Statement also requires that a component unit in which a government has a 100 percent equity
interest account for its assets, deferred outflows of resources, liabilities, and deferred inflows of
resources at acquisition value at the date the government acquired a 100 percent equity interest in
the component unit. Transactions presented in flows statements of the component unit in that
circumstance should include only transactions that occurred subsequent to the acquisition. The
requirements of this Statement are effective for reporting periods beginning after December 15,
2018. The requirements should be applied retroactively, except for certain cases and may require
restatement. As applicable, the City will implement this guidance in FY 2019.
Budgetary Basis of Accounting
The City prepares its annual budget on a basis which differs from GAAP, known as budget basis. The
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual - General Fund is
presented in accordance with the City’s method (budget basis) in order to provide a meaningful
comparison of actual results with the budget. The differences between budget basis and GAAP basis is
that reimbursements and transfers of indirect costs are shown as transfers out 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.
Budgetary Control
Formal budgetary integration is legally enacted and employed as a management control device during
the year for all funds.
Annual budgets are adopted on a consistent basis and are required by City Charter to be balanced for all
funds. Additional controls exist for the capital projects funds and these expenditures are controlled
through bond indenture provisions. Capital Projects funds are appropriated budgets based on the life of
a project and not on an annual basis.
Encumbrance accounting is employed in governmental funds. Encumbrances (purchase orders and
contracts) outstanding at fiscal year-end are reported as assigned fund balances and do not constitute
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
expenditures or liabilities because the amounts will be re-appropriated and honored in the subsequent
year. Other unexpended appropriations including salary expense lapse at fiscal year-end.
The City Charter establishes the City’s fiscal year as the twelve-month period beginning October 1. The
City follows these procedures in establishing the budgetary data reflected in the financial statements:
• City departments submit to the City Manager a budget of estimated expenditures for the coming
fiscal year. In addition, the Finance department proposes an estimate of revenues and submits to the
City Manager.
• Finance analyzes and compiles requests, and as required by the City Charter, balances the budget.
• A balanced proposed budget is then presented with comparative and supporting data to the Mayor
and City Council for review.
• Public hearings are properly advertised and conducted for taxpayer comments.
• Prior to September 1, the City Manager submits to the City Council a proposed operating budget of
estimated expenditures and revenues.
• Prior to September 27, the budget is legally enacted though the passage of an ordinance adopting the
budget and authorizing expenditures.
The City budgets each year for contingencies which may arise. The City Council has authorized the City
Manager to make budget transfers of any unexpended or unencumbered appropriation balance within
each of the various departments in the General Fund and within any other fund of the City and to
authorize transfers of Contingent Appropriations within a fund up to an amount equal to expenditures
that are $100,000 or less. All other transfers must be approved by City Council.
Management may not amend the annual approved budget without seeking the approval of the City
Council. In accordance with the City Charter, the budget may be amended after: (1) The City Manager
certifies that there are available revenues in excess of those estimated in the budget, (2) City Council
holds a public hearing on the supplemental appropriation, and (3) City Council approves the supplemental
appropriation.
2. ADJUSTMENTS TO FUND BALANCES AND NET POSITION
During fiscal year 2018, certain accounting changes and adjustments were made that required the
restatement of fund balances or net position. The restatements are presented below.
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
Government-Wide Net Position:
Governmental
Activities
Business-Type
Activities Total
Net Position
September 30, 2017 $ 251,526,260 $318,079,245 $569,605,505
GASB #75 implementation (2,883,346) (1,971,678) (4,855,024)
Community Development Loans 347,291 - 347,291
Sales Tax Revenue 2,706,262 - 2,706,262
Total Restatement 170,207 (1,971,678) (1,801,471)
Net Position
September 30, 2017 as Restated
$ 251,696,467 $316,107,567 $567,804,034
Restated Fund Balances:
General Fund Enterprise Fund
Internal
Service Funds Total
Fund Balance/ Net Position
September 30, 2017 $ 22,514,523 $312,970,408
$32,260,709 $367,745,640
GASB #75 implementation - (1,971,678) (278,555) (2,250,233)
Sales Tax Revenue 2,706,262 - - 2,706,262
Total Restatement 2,706,262 (1,971,678) (278,555) 456,029
Fund Balance/Net Position
September 30, 2017 as Restated
$ 25,220,785 $310,998,730
$31,982,154 $368,201,669
The restatement of ($2,883,346) in Governmental Activities and ($1,971,678) in the Business-type
Activities is due to the implementation of GASB 75. The restatement reduced beginning net position for
the Electric Fund by $1,168,696, the Water Fund by $229,170, the Wastewater Fund $258,620 and the
Other Enterprise Funds by $315,192. Pursuant to the requirements in GASB 75, a restatement was
required to properly report the beginning net OPEB liability and the beginning Deferred Outflow for
contributions made after the measurement date. See Note 1 for further information.
The restatement of $347,291 in Governmental Activities is for corrections in the prior period of recognition
of revenue on the Community Development Loans. The restatement results in an increase in the Change
in Net Position of the Governmental Activities for the immediate prior year.
The restatement of $2,706,262 in Governmental Activities and General fund to recognize Sales Tax
Revenue received from the State Comptroller in November 2017 that was for sales that occurred in
September 2017. The restatement results in an increase of $2,706,262 in the Change in Net Position and
Change in Fund Balance of the Governmental Activities and General fund, respectively, for the immediate
prior year.
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
The restatement of $1,474,075 in the Fiduciary Fund is to correct prior year balance as previously reported
for the City’s OPEB Trust Fund to report the fund as of the OPEB plan year-end and not the City’s year-end.
The restatement results in a decrease in the Change in Net Position for the fiduciary fund for the immediate
prior year.
3. MINIMUM FUND BALANCE POLICY AND OPERATING RESERVE POLICIES
The City has set financial guidelines regarding the retention of General Fund reserves (fund balance) to
ensure that adequate funds are available to cover daily operating expenditures and in anticipation of
economic downturns or natural disasters.
The unobligated or unassigned fund balance in the General Fund and the working capital (current assets
less current liabilities) in the Enterprise Funds should be at least 15% of the annual budgeted
expenditures. This percentage is the equivalent of 55 days’ expenditure. An additional amount of 3.0%
should be maintained for extraordinary items or contingencies in the General Fund. Cash and investments
alone should be equivalent to 30 days’ operating expenditures for both fund types.
4. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
Budgetary Information
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.
Appropriations lapse at the end of the budget year if they have not been expended or lawfully
encumbered.
The Council approved three budget amendments during fiscal year 2018 to increase appropriations.
These budget amendments included the following:
Total
Encumbrance Roll $ 2,595,965
General Fund 232,182
Parkland Dedication Funds 544,500
Streets and Park CIP Fund 852,800
Fun For All Playground 1,000,000
Internal Service Funds 1,395,885
Wolf Pen Creek TIRZ 1,077,759
Special Revenue Funds 1,423,500
Electric Fund 97,900
HOT Fund 1,826,923
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
Total $ 11,047,414
Excess of Expenditures over Appropriations
Expenditures in excess of appropriations for each fund are prohibited by the City Charter. However,
certain funds may end up exceeding budgeted appropriations as a result of unforeseen economic events.
The funds in which there were amounts of any excesses of expenditures over appropriations during fiscal
year 2018 are as follows:
Total
Workers’ Compensation Insurance Fund $ 250,346
Fleet Maintenance Fund 40,086
Wolf Pen Creek Tax Increment Financing District Fund 200,147
Memorial Cemetery Fund 2,767
Texas Avenue Cemetery Endowment Fund 3,250
Drainage Fund 137,868
Total $ 634,464
5. ENCUMBRANCES
Encumbrance accounting is employed in governmental funds. Purchase orders, contracts, and other
commitments for expenditures 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, 2018 for fiscal year
2019:
Amount
General Fund $ 270,024
Economic Development 250,000
Equipment Replacement Fund 1,735,592
Hotel Tax Fund 111,381
Memorial Endowment Cemetery 80,217
Northgate Parking Garage Fund 87,500
Water Fund 61,251
Total Encumbrances $ 2,595,965
6. CASH AND CASH EQUIVALENTS
Deposits
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
State statutes require that all deposits in financial institutions be fully collateralized by U.S. Government
obligations or its agencies and instrumentalities or direct obligations of Texas or its agencies and
instrumentalities that have a market value of not less than the principal amount of the deposits. All
deposits of the City that exceed the federal depository insurance coverage level of $250,000 per account
are covered by collateral held by the Federal Reserve Bank in the City's name under a joint safekeeping
agreement with Branch Banking and Trust Company (BB&T). The market value of the collateral held at
the Federal Reserve Bank in the City’s name at fiscal year-end was $268,286,650. At September 30, 2018,
the carrying amount of the City's deposits was $226,947,362, and the respective bank balances totaled
$228,369,099. The City’s cash on hand totaled $245,030,664.
Fair Value
Weighted
Average Maturity
(days)
Petty Cash $ 13,340 1
Bank Depository Accounts 3,578,263 1
Bank Depository Money Market Account 223,369,099 1
Local Government Investment Pools 18,069,962 31
Total Cash and cash equivalents $ 245,030,664
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%.
Restricted Cash, Cash Equivalents and Investments
Below is a reconciliation of the various restricted cash, cash equivalents, and investments reported as of
September 30, 2018:
Governmental
Funds
Electric
Fund
Water
Fund
Wastewater
Fund Total
Customer Deposit Payables - 2,435,880 249,083 19,300 2,704,263
Capital Debt Proceeds 77,451,704 4,580,433 3,756,100 255,897 8,592,430
$ 77,451,704 $ 7,016,313 $ 4,005,183 $ 275,197 $ 11,296,693
7. INVESTMENTS
Investment Policy
Cash and investments are accounted for within the pooled cash fund of the City. The City’s investment
program is guided by State statutes, by various City ordinances, and by the City’s investment policy, which
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
amplifies those guidelines and prescribes how the City will operate its investment program in accordance
with applicable laws and regulations.
The City’s policy, which was adopted by the City Council on October 12, 2017, for the fiscal year ending
September 30, 2018, sets forth (1) the basic principles governing the investment of City funds; (2) the
objectives of the City’s investment program; and (3) the authority, responsibilities, limitations,
documentation and requirements to be used in the administration and operation of the City’s investment
program.
The City is authorized to invest in the following:
• Direct obligations of the United States or its agencies and instrumentalities;
• Debentures or discount notes issued by, guaranteed by, or for which the credit of any Federal
Agencies and Instrumentalities is pledged for payment;
• Direct obligations of the State of Texas or its agencies;
• Bonds or other obligations, the principal and interest of which is guaranteed by the full faith and credit
of the United States;
• Certificates of deposit issued by state and national banks within the state of Texas that are secured
by obligations qualified as acceptable collateral;
• Bankers’ Acceptances eligible for discounting with the Federal Reserve maturing within 90 days;
• Fully collateralized repurchase agreements having a defined termination date of 90 days or less,
secured by qualified obligations, pledged with a third party, and placed through a primary
government securities dealer as defined by the Federal Reserve, or a bank domiciled in Texas;
• Money-market mutual funds that are SEC registered no-load funds with dollar-weighted average
portfolio maturity of 90 days or less;
• Local government investment pools rated no lower than AAA or AAA-m from at least one nationally
recognized rating agency;
• Hedging contracts and related security insurance agreements in relation to fuel oil, natural gas, coal,
nuclear fuel, and electric energy to protect against loss due to price fluctuations;
• Reverse repurchase agreements are allowed only if the term does not exceed 90 days after delivery,
and money received is used to acquire additional authorized investments with a maturity date not to
exceed the expiration date stated in the agreement.
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
The City’s investment policy prohibits the substitution of collateral on repurchase agreements without
prior approval of the City Council. For additional information, see the City of College Station Investment
Policy at www.cstx.gov.
The City’s investments at September 30, 2018 as are follows:
Fair Value
Weighted
Average Maturity
(days)
US Agencies $ 42,359,038 792
Fair Value Measurements
The City categorizes its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair
value of the asset.
Level 1 Quoted prices in active markets for identical assets
Level 2 Observable inputs other than Level 1 prices; such as quoted prices for similar
assets, quoted prices in markets that are not active, or other inputs that are observable
or can be corroborated by observable market data for substantially the full term of the
assets.
Level 3 Unobservable inputs supported by little or no market activity and are significant to the
fair value of the assets.
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. There have been no
changes in the methodologies used between September 30, 2018 and 2017.
U.S. Government Agency Securities and U.S. Treasury Bonds and Notes: Classified in Level 2 of the fair
value hierarchy and valued using a matrix pricing technique. Matrix pricing is used to value securities
based on the securities’ relationship to benchmark quoted prices. U.S. Government Agency securities
held by the City are rated AA+ by Standard and Poor’s.
Investment Pools: The City is a voluntary participant in four external investment pools with fair value
measured as follows:
Investment Pool Measurement Credit Risk
Texpool Amortized Cost AAAm
Texpool Prime Amortized Cost AAAm
TexSTAR Net Asset Value AAAm
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
LOGIC Net Asset Value AAAm
The investments in government pools are measured at net asset value or amortized cost and are exempt
from reporting in the fair value hierarchy.
The City is a voluntary participant in the above four external investment pools. 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 they will, and do, operate in a manner consistent with the SEC’s Rule 2a7
of the Investment Company Act of 1940. Furthermore, the pools in which the City participates seek to
maintain a constant $1 objective per share of unit. Accordingly, the City’s position in these pools is
substantially the same as the fair value of the shares in each of the pools. The Comptroller maintains
oversight of the services provided to the TexPool Portfolios. In addition, the TexPool Advisory Board
advises on the Investment Policies for the TexPool Portfolios. The TexPool Advisory Board members serve
at the will of the Comptroller.
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%.
Credit risk: In compliance with the City’s Investment Policy and the Texas Public Funds Investment Act,
the City manages credit risk through portfolio diversification by limiting investments to avoid over
concentration in securities from a specific issuer; limiting investments in securities with high credit risk;
and investing in securities with varying maturities. At September 30, 2018, the City had no single
investment category that exceeded 10% of investable funds. The City’s investment in Texpool accounted
for 4.5% of investable funds while its investment in the Federal Home Loan Mortgage Corporation
accounted for 5.1%, Federal Farm Credit Bank accounted for 4.5%, and Federal Home Loan Bank
accounted for 3.5% of investable funds.
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.
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.
Foreign Currency Risk: By virtue of the City’s Investment Policy and the Texas Public Funds Investment
Act, the City is not exposed to foreign currency risk because the City is not authorized to maintain deposits
or investments denominated in a foreign currency.
OPEB Trust Fund Investments: The City has contracted with Public Agency Retirement Services (PARS) for
trust administration, and the District’s OPEB Plan investments are held in the PARS PostRetirement Health
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
Care Plan Trust by its trustee and custodian Union Bank (the “Trustee”). PARS provides its participants a
range of investment strategies, and the City has selected the PARS Balanced HighMark Diversified
Portfolio Index PLUS. The goal of the Plan’s investment program is to generate adequate long-term
returns that, when combined with contributions, will result in sufficient assets to pay present and future
obligations to the Plan. The Balanced Portfolio’s goal is for growth of principal and income. The Plan’s
underlying investments are allocated between equity, fixed income securities, and cash. As of December
31, 2017, investments were carried at fair value of $1,521,285 and were registered with and managed by
the Trustee. The OPEB Plan’s investments are measured at the equivalent of Net Asset Value (NAV). The
OPEB Plan has no unfunded commitments and may redeem investments at anytime to pay for OPEB
benefits.
8. 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 $ 216,179 $ 173,210 $ - $ - $ - $ 389,389
Beverage 170,410 - - - - 170,410
Sales 4,973,166 - - - - 4,973,166
Subtotal taxes 5,359,755 173,210 - - - 5,532,965
Grants - - - 116,198 - 116,198
Charges for
services 2,144,690 - 360,213 788,406 515,013 3,808,322
Miscellaneous 7,634,276 - - 49,305 - 7,683,581
Total gross
governmental 15,138,721 173,210 360,213 953,909 515,013 17,141,066
Less: Allowance
for uncollectible
accounts (7,725,185) - - (57,573) (186,433) (7,969,191)
Net total
receivables $ 7,413,536 $ 173,210 $ 360,213 $ 896,336 $ 328,580 $ 9,171,875
Business-type
activities Electric Water Wastewater Nonmajor
Internal
Service
Funds Total
Charges for
services $15,403,347 $2,303,234 $2,224,256 $1,363,633 $ - $21,294,470
Less: Allowance
for uncollectible
accounts (1,315,237) (104,438) (203,568) (104,361) - (1,727,604)
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
Net total
receivables $14,088,110 $2,198,796 $2,020,688 $1,259,272 $ - $19,566,866
Loans Receivable in the non-major governmental funds are made up of the following: a $738,405, 40-year
loan of HOME Investment Partnership (HOME) funds for Santour Court, an affordable, single-family
residential development; $975,218 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);
$521,612 in HOME funds for Terrace Pines Apartment Homes, a tenant based rental assistance program
that offers security deposit assistance to eligible elderly citizens; and three Community Development
Housing Reconstruction Program Lien Notes held by the City which total to $246,456. The allowance for
uncollectible accounts for these loans total to $(521,612), resulting in a net amount of $1,960,079.
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 Sept 30, Principal Interest
2019 $ 230,000 $ 122,963
2020 240,000 113,850
2021 250,000 104,050
2022 230,000 93,300
2023 240,000 81,550
2024-2028 1,440,000 207,350
2029 325,000 4,875
$ 2,955,000 $ 727,938
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
9. CAPITAL ASSETS
Governmental Activities
Capital asset activity for the year ended September 30, 2018 was as follows:
Governmental Activities Balance Increases Decreases Adjustment Balance
Capital assets, not being depreciated
Land $ 33,583,975 $ 673,221 $ - $ - $ 34,257,196
Construction in progress 24,132,282 32,444,801 (6,022,866) - 50,554,217
Total capital assets, not being
depreciated 57,716,257 33,118,022 (6,022,866) - 84,811,413
Capital assets, being depreciated
Buildings and building
improvements 39,933,336
2,744,072 (13,261) -
42,664,147
Improvements other than buildings 46,205,468 2,289,436 (56,641) 127,946 48,566,209
Machinery and equipment 47,291,325 2,962,895 (4,462,199) (127,946) 45,664,075
Infrastructure 328,672,109 13,137,576 - - 341,809,685
Total capital assets, being
depreciated 462,102,238 21,133,979 (4,532,101) - 478,704,116
Less accumulated depreciation for:
Buildings and building
improvements 16,212,617 1,167,169 (8,374) - 17,371,412
Improvements other than buildings 24,504,128 2,273,930 (38,949) 30,908 26,770,017
Machinery and equipment 29,722,945 4,444,774 (4,392,309) (30,908) 29,744,502
Infrastructure 165,159,865 10,436,336 - - 175,596,201
Total accumulated depreciation 235,599,555 18,322,209 (4,439,632) - 249,482,132
Total capital assets being
depreciated, net 226,502,683 2,811,770 (92,469) - 229,221,984
Total governmental type activities
capital assets, net $284,218,940 $35,929,792 $ (6,115,335) $ - $314,033,397
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
Business-Type Activities
Capital asset activity for the year ended September 30, 2018 was as follows:
Business-Type Activities
Beginning
Balance Increases Decreases Adjustments
Ending
Balance
Capital assets, not being depreciated
Land $ 690,750 $ - $ - $ - $ 690,750
Construction in progress 30,240,705 34,825,833 (18,619,477) - 46,447,061
Total capital assets, not being
depreciated 30,931,455 34,825,833 (18,619,477) - 47,137,811
Capital assets, being depreciated
Electric system 212,747,068 11,110,988 (990,736) - 222,867,320
Water system 194,374,311 6,430,655 (420,202) - 200,384,764
Wastewater system 146,652,675 11,098,439 (1,285,325) - 156,465,789
Buildings and building
improvements 6,349,242 - - - 6,349,242
Machinery and equipment 6,825,402 719,715 (422,373) - 7,122,744
Total capital assets, being
depreciated 566,948,698 29,359,797 (3,118,636) - 593,189,859
Less accumulated depreciation for:
Electric system 99,551,071 7,513,022 (719,560) - 106,344,533
Water system 66,403,444 5,219,455 (215,031) - 71,407,868
Wastewater system 63,420,113 5,728,788 (657,309) - 68,491,592
Buildings and building
improvements 2,298,279 183,726 - - 2,482,005
Machinery and equipment 3,810,153 992,698 (389,621) - 4,413,230
Total accumulated depreciation 235,483,060 19,637,689 (1,981,521) - 253,139,228
Total capital assets being
depreciated, net 331,465,638 9,722,108 (1,137,115) - 340,050,631
Total Business type activities
capital assets, net $362,397,093 $44,547,941 $(19,756,592) $ - $387,188,442
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
Governmental Activities Depreciation
Depreciation expense for the fiscal year ended September 30, 2018 was as follows:
Police $ 532,590
Fire 871,526
Public Works 10,249,430
Parks and Recreation 2,395,850
Planning and Development Services 36,034
Information Technology 848,482
Fiscal Services 28,389
General Government 596,599
Capital Assets held by Internal Service Funds 2,763,309
Governmental Activities Depreciation Expense $ 18,322,209
Business-Type Activities Depreciation
Depreciation expense for the fiscal year ended September 30, 2018 was as follows:
Electric $ 7,513,022
Water 5,219,455
Wastewater 5,728,788
Sanitation 967,300
Northgate Parking Garage 209,124
Business-Type Depreciation Expense $19,637,689
10. INTERFUND TRANSFERS
Interfund transfers for the year ended September 30, 2018 are as follows:
Transfers In Transfers Out
Governmental
Activities, net
Business-type
Activities, net
Governmental Activities:
General Fund $19,245,943 $ (3,031,702) $ 16,214,241 $ -
Debt Service Fund 464,453 - 464,453 -
General Government Projects 1,592,914 (193,371) 1,399,543 -
Streets Projects - (707,618) (707,618) -
Other Nonmajor Governmental Funds - (3,693,813) (3,693,813) -
Internal Service Funds 928,674 (61,345) 867,329 -
Business-type Activities:
Electric 1,793,420 (9,647,251) - (7,853,831)
Water 1,554 (2,741,312) - (2,739,758)
Wastewater - (2,272,052) - (2,272,052)
Other Nonmajor Enterprise Funds - (1,678,494) - (1,678,494)
$ 24,026,958 $(24,026,958) $ 14,544,135 $(14,544,135)
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
Interfund transfers are used for the following purposes:
• move revenues from the funds with collection authorization to the debt service fund as debt
service principal and interest payments become due,
• move revenues from enterprise funds to the general fund to record the utility transfer in lieu of
franchise fees,
• move revenues from enterprise funds to the general fund for economic development activity,
• move unrestricted general fund revenues to finance various programs that the government must
account for in other funds in accordance with budgetary authorizations.
11. INTERFUND BALANCES
The interfund receivable and payables at September 30, 2018, result from the General Fund loan to
Spring Creek LGC for the purpose of covering expenditures.
Fund
Receivable Payable Total
General Fund $ 95,331 $ - $ 95,331
Spring Creek LGC - (95,331) (95,331)
TOTAL
$ 95,331 $ (95,331) $ -
12. DEFERRED INFLOWS OF RESOURCES AND UNEARNED REVENUE – OTHER THAN
PENSIONS AND OPEB
Deferred inflows of resources represents acquisition of net position that applies to a future reporting
period and will not be recognized as revenue until the inflow occurs. For the period ended September
30, 2018, the City reported $3,239,889 in Governmental Funds. These deferred inflows of resources and
unearned revenues as of September 30, 2018 are as follows:
Deferred
Inflows of
Resources
Unearned
Revenue Total
Delinquent property taxes receivable $ 389,389 $ - $ 389,389
Loans receivable 1,960,079 - 1,960,079
Cemetery plot loans receivable 49,304 - 49,304
Street funds 174,516 - 174,516
Other - general funds 666,601 - 666,601
TOTAL
$ 3,239,889 $ - $ 3,239,889
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
13. DEFERRED OUTFLOWS OF RESOURCES – OTHER THAN PENSIONS AND OPEB
In addition to deferred inflows of resources, the financial statements will sometimes report a separate
section for deferred outflows of resources. Deferred outflows of resources represents a consumption of
net position that applies to future periods and so will not be recognized as an expense until the outflow
occurs. For the period ended September 30, 2018, the City reported $1,338,244 of deferred outflows in
the Governmental Funds and $2,130,003 of deferred outflows for Business-type activities. These deferred
outflows of resources are related to charges on debt refunding, are amortized over the life of the
refunded debt, and are reported on the government wide Statement of Net Position.
14. LONG-TERM DEBT
A summary of long-term debt transactions, including current portion, for the year ended September 30,
2018 follows:
Beginning
Balance
Incurred/
Issued
Matured/
Retired Ending Balance
Amount Due
Within One
Year
Governmental activities:
General obligation bonds $ 97,355,000 $ - $ 7,430,000 $ 89,925,000 $ 6,855,000
Certificates of obligation 72,270,000 18,230,000 5,005,000 85,495,000 6,705,000
Premium/discount 15,341,136 880,054 1,146,382 15,074,808 1,190,939
Governmental activity
Long term debt $184,966,136 $ 19,110,054 $ 13,581,382 $ 190,494,808 $ 14,750,939
Business type activities:
General obligation bonds $ 61,565,000 $ - $ 6,325,000 $ 55,240,000 $ 5,860,000
Certificates of obligation 77,475,000 19,150,000 4,790,000 91,835,000 5,585,000
Premium/discount 13,717,318 951,881 1,310,299 13,358,900 1,358,496
Business type activity
Long term debt $152,757,318 $ 20,101,881 $ 12,425,299 $160,433,900 $ 12,803,496
Internal service funds predominantly serve the government funds. All internal service funds, except for
the utility customer service funds, are included as part of the above totals for governmental activities.
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
Long-term debt at September 30, 2018 includes the following individual issues (not including
unamortized premiums or discounts):
General Obligation Bonds: - Governmental Activities:
Interest
Rate (%) Issue Date
Maturity
Date Original Issue
Net
Retirement Outstanding
2008 Issue 4.0-5.0 09/01/08 2/15/28 $ 9,455,000 $ 8,610,000 $ 845,000
2009 Issue 2.0-4.0 07/15/09 2/15/21 3,335,000 2,845,000 490,000
2009 Issue – Refunding 2.0-4.0 11/15/09 2/15/20 4,265,000 3,785,000 480,000
2010 Issue 2.0-3.5 08/15/10 2/15/30 19,635,000 6,125,000 13,510,000
2010 Issue – Refunding 3.0-5.0 11/15/10 2/15/22 11,245,000 8,160,000 3,085,000
2011 Issue .25-1.6 09/15/11 2/15/18 1,960,000 1,960,000 -
2012 Issue & Refunding 2.0-5.0 06/01/12 2/15/32 11,515,000 4,720,000 6,795,000
2013 Issue & Refunding 2.0-5.0 08/15/13 2/15/33 14,505,000 4,085,000 10,420,000
2014 Issue & Refunding 2.0-5.0 09/01/14 2/15/34 21,230,000 3,920,000 17,310,000
2016 Issue & Refunding 2.0-5.0 07/01/16 2/15/36 22,180,000 3,020,000 19,160,000
2017 Issue & Refunding 2.0-5.0 06/01/17 2/15/37 18,320,000 490,000 17,830,000
$ 137,645,000 $ 47,720,000 $ 89,925,000
General Obligation Bonds – Business-type Activities:
Interest
Rate (%) Issue Date
Maturity
Date Original Issue
Net
Retirement Outstanding
2009 Issue – Refunding 2.0-4.0 11/15/09 2/15/20 $ 3,830,000 $ 3,400,000 $ 430,000
2010 Issue – Refunding 3.0-5.0 11/15/10 2/15/22 25,905,000 16,175,000 9,730,000
2012 Issue – Refunding 2.0-5.0 06/01/12 2/15/24 9,570,000 4,850,000 4,720,000
2013 Issue – Refunding 2.0-5.0 08/15/13 2/15/25 6,255,000 2,635,000 3,620,000
2014 Issue – Refunding 2.0-5.0 09/01/14 2/15/26 14,635,000 6,545,000 8,090,000
2016 Issue – Refunding 2.0-5.0 07/01/16 2/15/28 18,710,000 1,540,000 17,170,000
2017 Issue – Refunding 2.0-5.0 06/01/17 2/15/29 11,480,000 - 11,480,000
90,385,000 35,145,000 55,240,000
Total General Obligation Bonds $ 228,030,000 $ 82,865,000 $ 145,165,000
Certificates of Obligation – Governmental Activities:
Interest
Rate (%) Issue Date
Maturity
Date Original Issue
Net
Retirement Outstanding
2008 Issue 3.25-5.0 09/01/08 2/15/20 $ 10,515,000 $ 9,580,000 $ 935,000
2009 Issue 3.0-5.0 07/15/09 2/15/29 3,260,000 3,160,000 100,000
2014 Issue 2.0-5.0 09/01/14 2/15/34 10,665,000 2,935,000 7,730,000
2016 Issue 2.0-5.0 07/01/16 2/15/36 18,470,000 2,505,000 15,965,000
2017 Issue 2.0-5.0 06/01/17 2/15/37 45,585,000 3,050,000 42,535,000
2018 Issue 2.0-5.0 06/01/18 2/15/38 18,230,000 - 18,230,000
$ 106,725,000 $ 21,230,000 $ 85,495,000
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
Certificates of Obligation – Business-type Activities:
Interest
Rate (%) Issue Date
Maturity
Date Original Issue
Net
Retirement Outstanding
2008 Issue 3.25-5.0 09/01/08 2/15/20 $ 15,925,000 $ 14,325,000 $ 1,600,000
2009 Issue 3.0-5.0 07/15/09 2/15/29 28,055,000 24,485,000 3,570,000
2010 Issue 2.0-3.5 08/15/10 2/15/30 2,850,000 855,000 1,995,000
2011 Issue 2.0-3.6 09/15/11 2/15/31 7,935,000 2,055,000 5,880,000
2012 Issue 2.0-5.0 06/01/12 2/15/32 16,415,000 3,760,000 12,655,000
2013 Issue 2.0-5.0 08/15/13 2/15/33 10,230,000 1,895,000 8,335,000
2014 Issue 2.0-5.0 09/01/14 2/15/34 23,340,000 3,205,000 20,135,000
2016 Issue 2.0-5.0 07/01/16 2/15/36 7,250,000 565,000 6,685,000
2017 Issue 2.0-5.0 06/01/17 2/15/37 12,140,000 310,000 11,830,000
2018 Issue 2.0-5.0 06/01/18 2/15/38 19,150,000 - 19,150,000
143,290,000 51,455,000 91,835,000
Total General Obligation Bonds $ 250,015,000 $ 72,685,000 $ 177,330,000
Total Outstanding Bonds $ 322,495,000
The annual requirements to amortize debt outstanding as of September 30, 2018 are as follows:
Governmental Activities
General Obligation Certificates of Obligation
Year Ended
September 30, Principal Interest Principal Interest
2019 $ 6,855,000 $ 3,396,795 $ 6,705,000 $ 3,570,524
2020 7,175,000 3,095,048 4,445,000 3,183,969
2021 6,670,000 2,817,906 4,170,000 2,983,019
2022 6,565,000 2,553,531 4,350,000 2,776,306
2023 6,895,000 2,253,781 4,550,000 2,553,806
2024-2028 31,190,000 6,830,219 20,810,000 9,527,781
2029-2033 17,780,000 2,415,463 21,445,000 5,065,040
2034-2038 6,795,000 356,710 19,020,000 1,269,861
$ 89,925,000 $ 23,719,453 $ 85,495,000 $ 30,930,306
Business-Type Activities
General Obligation Certificates of Obligation
Year Ended
September 30, Principal Interest Principal Interest
2019 $ 5,860,000 $ 2,310,906 $ 5,585,000 $ 3,744,000
2020 6,170,000 2,041,556 5,965,000 3,392,878
2021 6,915,000 1,756,406 5,370,000 3,170,151
2022 6,375,000 1,467,356 4,305,000 2,969,339
2023 5,665,000 1,183,481 4,520,000 2,774,569
2024-2028 22,565,000 2,175,341 25,535,000 10,745,382
2029-2033 1,690,000 25,275 27,995,000 5,041,706
2034-2038 - - 12,560,000 880,455
$ 55,240,000 $ 10,960,321 $ 91,835,000 $ 32,718,480
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
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, 2018.
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. A portion of the Certificates of Obligation were refunded in 2017 and as of
September 30, 2018, BVSWMA, Inc. owed the City $2,955,000.
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, 2018, 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
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
issues in irrevocable escrow accounts with a trust agent to ensure payment of debt service on the
refunded bonds.
Accordingly, the trust account assets and liabilities for the defeased bonds are not included in the City’s
financial statements. Although defeased, the refunded debt from these earlier issues will not be retired
until the call dates have come due or until maturity if they are not callable issues. On September 30, 2018,
the City’s escrow balance for bonds defeased on December 1, 2011 was $1,552,165 and defeased bond
principal of $1,425,000 is callable February 15, 2019. On September 30, 2018, the City’s escrow balance
for bonds defeased on June 1, 2017 was $14,832,828 and defeased bond principal of $14,660,000 is
callable February 15, 2019.
15. 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
Parks and Recreation 2008 645,000
Total $ 5,500,000
1. Contains projects which may have been completed or abandoned; therefore, these bonds are not likely to ever be issued.
16. 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. The lease was amended in 2018 to expire in February of 2021.
Rent cost totaled $118,804 for fiscal year 2018. The following is a schedule, by year, of the future
minimum rental payments under the office space lease:
Year Ended September 30
2019 $ 122,352
2020 $ 126,013
2021 $ 53,147
Thereafter $ -
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
17. COMPONENTS OF FUND EQUITY
The City’s classification of governmental fund balances is as follows at September 30, 2018:
General Debt Service
General
Government
Projects Street Projects
Special
Revenue Total
Nonspendable:
Inventories $ 44,764 - - - - $ 44,764
Prepaids 583,754 - - - - 583,754
Restricted: Community and
Neighborhood
Parks - - - - 7,167,276 7,167,276
Community
Development - - - - 687,305 687,305
Court Security Fee - - - - 32,074 32,074
Court Technology
Fee - - - - 465,633 465,633
Debt Service - 5,272,810 - - - 5,272,810
General
Government
Capital Projects - - 40,236,419 39,193,275 - 79,429,694
Hotel Occupancy
Tax - - - - 12,277,170 12,277,170
Juvenile Case
Manager -
- - - 166,010 166,010
Parks and
Recreation
Capital Projects - - - - 6,230,960 6,230,960
Police Seizure - - - - 128,083 128,083
Wolf Pen Creek
TIF - - - - 11,968 11,968
Truancy
Prevention
-
- - - 64,568 64,568
East Medical
District TIRZ
No. 19 - - - - 18,222 18,222
PEG Access
Channel
- - - - 734,658 734,658
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
General Debt Service
General
Government
Projects Street Projects
Special
Revenue Total
Meyer Estate Gift - - - - 153,642 153,642
City-Wide Water
Impact Fee Fund - - - - 26,767 26,767
City Wide
Wastewater
Impact Fee Fund
-
- - - 1,443,642 1,443,642
City Wide
Transportation
Impact Fee Fund
-
- - - 264,840 264,840
Fun For All
Playground - - - - 959,744 959,744
Committed: Texas Avenue
Cemetery
Endowment - - - - 1,946,323 1,946,323
Memorial
Cemetery - - - - 5,189,453 5,189,453
Memorial
Cemetery
Endowment - - - - 2,896,103 2,896,103
Drainage
Infrastructure
Improvements - - - - 1,716,249 1,716,249
Parks
Infrastructure
Improvements - - - - 6,766,028 6,766,028
Roadway
Maintenance
Fund - - - - 789,203 789,203
Assigned:
Other Purposes 2,128,177 - - - - 2,128,177
Unassigned: 24,033,874 - - - - 24,033,874
TOTAL $ 26,790,569 $ 5,572,810 $ 40,236,419 $ 39,193,275 $ 50,135,921
$161,628,994
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
The City’s classification of business-type net position balances is as follows at September 30, 2018:
Electric Water Wastewater
Other
Enterprise Total
Net Investment in
Capital Assets:
Capital Assets $ 133,704,689 $ 140,466,271 $ 105,749,515 $ 7,267,967 $ 387,188,442
Deferred charge on
refunding (873,444) (740,500) (187,293) (11,177) (1,812,414)
Debt (57,385,415) (53,475,792) (45,848,755)
(433,174) (157,143,136)
Retainage Payable,
related to Capital
Assets (141,498) (590,455) (437,858)
- (1,169,811)
Unspent Proceeds 4,580,433 3,570,000 255,897 - 8,406,330
Total Net Investment
in Capital Assets 79,884,765 89,229,524 59,531,506 6,823,616 235,469,411
Restricted - - - 17,261,241 17,261,241
Unrestricted 54,588,261 11,526,800 24,607,343 1,731,245 92,453,649
TOTAL $ 134,473,026 $ 100,756,324 $ 84,138,849 $ 25,816,102 $ 345,184,301
18. REVENUE RECOGNITION
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.
Taxpayers have two options for paying property taxes: the full payment option or the split payment
option.
• Taxpayers electing the full payment option have from October 1 of the tax year to January 31 of the
following year to pay the full amount of taxes without penalty or interest. Tax liens are automatic and
become enforceable as of January 1 of each year. Taxes become delinquent on February 1 and any
unpaid balance will accrue penalty and interest.
• Taxpayers electing the split payment option have from October 1 to November 30 of the tax year to
pay half of the tax amount. The remaining half may be paid without penalty or interest any time on
or before June 30 of the following year. Taxes become delinquent on July 1.
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
The tax rate to finance general governmental services including debt service was 49.7500 cents per $100
of assessed valuation for the year ended September 30, 2018. 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.
Taxpayers who were 65 years of age or older on January 1, and have filed an application for exemption,
may pay the taxes on their homestead in four equal installments. Quarterly payments are due January
31, March 31, May 31, and July 31.
The Brazos Central 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.
Tax Increment Financing Zones
Tax increment financing is a statutory tool as allowed by Chapter 311 of the Texas Tax Code available to
municipalities to publicly finance needed improvements to infrastructure and buildings within a
designated area known as a reinvestment zone. The cost of improvements to the reinvestment zone is
repaid by the future tax revenues of each taxing unit that levies taxes against the property. Each taxing
unit can choose to dedicate all, a portion of, or none of the tax revenue gained as a result of
improvements within the reinvestment zone.
A reinvestment zone can be initiated by petition of the affected property owners or a municipality can
initiate a reinvestment zone without the need for a petition. Once a city has begun the process of
establishing a tax increment financing reinvestment zone, other taxing units, (the county or school
district) are allowed to consider participating in the tax increment financing agreement. These zones are
commonly referred to as either a tax increment financing (TIF) zone or a tax increment reinvestment zone
(TIRZ).
Once established, a base value for the property located within the zone is determined. At the date of
creation the appraised value is normally accepted as the base value. As the property within the zone
develops, the County collects taxes based on the appreciated appraised values at the ad valorem tax rate
established annually. Once the taxes have been paid each year the County remits the amount of taxes
attributable to the increase in the appraised values (captured value) to the local government unit
managing the funds. Funds are then restricted to be used in the designated area on approved projects.
Project plans normally include the creation of infrastructure such as roads, street improvements, light
systems, sewer systems, landscaping, parks, etc. A TIF can be terminated either on the date designated
in the ordinance creating the zone, or the date on which all project costs, tax increment bonds, and
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
interest on the bonds have been paid. A TIRZ may also be terminated by a subsequent ordinance
providing for an earlier or later termination date.
As of September 30, 2018, the City had one expired, one dissolved and one active Tax Increment
Reinvestment Zones (TIRZ):
Wolf Pen Creek TIF (TIRZ No. 1)
Established in 1989, the Wolf Pen Creek (WPC) TIF Fund accounts for ad valorem tax and other
revenues that are accrued to the WPC TIF District. The fund also accounts for expenditures on projects
that take place in the WPC District. The TIRZ received ad valorem taxes from the City of College
Station, College Station Independent School District and Brazos County on the incremental increase
in assessed valuation (captured value) over the base year. The TIRZ expired on December 31, 2009;
therefore, no ad valorem revenue was received in FY18. Funds were repaid to CSISD during fiscal year
2018 when the school district determined that they could utilize the funds locally. The remaining fund
balance totals $11,968 and represents allocated interest on the funds due to the City of College
Station. The fund balance will be liquidated to the City’s general fund by September 30, 2019.
West Medical District TIRZ No. 18
Established in December 2012, the West Medical District TIRZ #18 encompasses the area near the
State Highway 6/Rock Prairie Road Bridge and includes both The Med Hospital and the Baylor Scott
& White Hospital. To realize the vision and economic development opportunities included in the
October 2012 College Station Medical District Master Plan, significant barriers to development must
be overcome. These barriers include, but are not limited to, lack of basic infrastructure (potable
water, fire flow, sanitary sewer, etc.) to serve development in the area and lack of transportation
capacity (vehicular, pedestrian, etc.) to meet the mobility needs present in the area. Development
projects in this area include Rock Prairie Road (East and West), Normand Drive Extension, and other
public works projects.
As the City of College Station is the only participant in this TIRZ and no additional development
opportunities were available in the area, this TIRZ was dissolved on May 24, 2018 and the remaining
balance of $914,724 was transferred to the General Government Projects Fund.
East Medical District TIRZ No. 19
Established in December 2012, the East Medical District TIRZ #19 encompasses the area east of the
State Highway 6/Rock Prairie Road Bridge and includes most of the undeveloped properties within
the District. To realize the vision and economic development opportunities included in the October
2012 College Station Medical District Master Plan, significant barriers to development must be
overcome. These barriers include, but are not limited to, lack of basic infrastructure (potable water,
fire flow, sanitary sewer, etc.) to serve development in the area and lack of transportation capacity
(vehicular, pedestrian, etc.) to meet the mobility needs present in the area. Development projects in
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
this area include Rock Prairie Road (East), Barron Road, Lakeway Drive, potable water, fire flow water
supply, greenway trails, sanitary sewer service, and other public works projects.
It is projected that new development in this portion of the District will meet or exceed $283 million
over a twenty year period. This development activity would yield an increment of approximately
$30.8 million in tax proceeds. These proceeds would be used to fund the required improvement
projects, either through reimbursement to private developers, repayment of issued debt, on a “pay
as you go” basis, or a combination of these options. The City of College Station is the only participant
in this TIRZ at this time.
The following schedule is a ten year history of relevant data with regard to these TIRZ:
Zone/
Fiscal Year
Base
Value
Ne t
Taxable
Value
Captured
Value
Tax Rate
Per $100
Valuation
Captured
Tax
Revenue
West Medical District TIRZ No 18
2018 (closed
5/24/2018)
1
5
$ 155,965,264 $ 203,490,330 $ 47,525,066 $ 0.497500 $ 236,437
2017 155,965,264 203,142,083 48,176,819 0.472500 218,201
2016 155,965,264 196,089,330 40,124,066 0.452500 181,735
2015 155,965,264 198,414,950 42,449,686 0.452500 191,936
2014 152,561,604 169,852,535 17,290,931 0.425958 75,131
2013 155,965,264 155,965,264 - - -
East Medical District TIRZ No 19
2018 $ 3,105,476 $ 5,607,537 $ 2,502,061 $ 0.497500 $ 12,448
2017 3,105,476 3,723,760 618,284 0.472500 2,798
2016 3,105,476 3,287,180 181,704 0.452500 822
2015 3,105,476 3,327,550 222,074 0.452500 1,005
2014 3,105,476 3,348,890 243,414 0.425958 1,037
2013 3,105,476 3,105,476 - - -
System Wide Impact Fees
The City records impact fees received in excess of the cost of physical connection to the Water and
Wastewater system as revenues. Corresponding cash is recorded as a restricted asset for future
expansion of the Water and Wastewater systems.
The City also records transportation impact fees received as revenues. Roadway impact fees help pay for
infrastructure extensions and improvements that are needed as the result of new development. Road
impact fee calculations consider the anticipated burden a development will place upon existing roadways,
and are based on location and type of development. Corresponding cash is recorded as a restricted asset
for future expansion of the transportation systems.
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
Roadway Maintenance Fees
An ordinance authorizing a user fee related to the transportation system to be paid by all residents and
businesses in College Station was approved by the College Station City Council on November 16, 2016.
Effective January 1, 2017, this fee is restricted to be used for preventative maintenance, to fix potholes,
and to properly maintain streets throughout College Station. The City conducts a pavement management
assessment to prioritize roadway maintenance projects to be funded with this fee.
19. TAX ABATEMENTS
The City is authorized under Chapter 380 of the Texas Local Government Code to provide economic
development incentives to support the expansion of local business activity. The terms of each agreement
are limited by the underlying agreements approved by the City Council. The City may recapture the
abated taxes in case the party subject to the agreement is in default.
For the fiscal year ended September 30, 2018, the City abated property taxes of $29,880 and provided
cash incentives totaling $23,212. The following tax abatements and incentive agreements each exceeded
10% of the total amount abated:
• Strategic Behavioral Health - an annual tax abatement based on a reduction in assessed value ranging
from 100% to 20% over the term of the agreement on improvements to property valuation beginning
2012 for an eight year period. Strategic Behavioral Health agrees to continuously own the premises
for a period of at least 8 years, beginning with the first year of abatement. Total amount abated for
the fiscal year ended September 30, 2018 was $29,880.
• Kalon, Inc. – an annual cash incentive beginning 2014 for a seven year period not to exceed
$1,093,549. Kalon agrees to employ no fewer than a total of 100 FTE’s with a total Gross Payroll no
less than $6,000,000. Total amount paid for the fiscal year ended September 30, 2018 was $0.
• Science Park - an annual cash incentive equal to the incremental taxable value for each year beginning
2015 for a ten year period not to exceed $1,000,000. Science Park agrees to aggressively pursue new
commercial and industrial tenants and to add value to the property and create new jobs. Total
amount paid for the fiscal year ended September 30, 2018 was $23,212.
• ViaSat, Inc. - an annual cash incentive based on a percentage of city ad valorem taxes paid beginning
2016 for an eight year period not to exceed $450,000. ViaSat agrees to employ a minimum total of
280 FTE’s to have and maintain for a total of 5 years. Total amount paid for the fiscal year ended
September 30, 2018 was $0.
20. RISK MANAGEMENT
The City of College Station is partially self-insured for property & casualty and general liability, workers’
compensation, and unemployment compensation risks. In January 2004, the City became self-funded for
employee and dependent health care costs. All risk management activities are accounted for in separate
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
Internal Service Funds. Actuarially-based charges are made to each of these funds using relevant bases
to allow the City to reflect the cost of claims more accurately against the various funds and to minimize
potential risks.
Self-Insured Retention
The self-insured retention for fiscal year 2018 was $500,000 per claim for workers’ compensation and
general, auto and employer liability; and $650,000 for fire and police liability. Settlements have not
exceeded self-insured retention in each of the past three fiscal years. The City experienced no losses
above the self-insured retention in fiscal year 2018.
Employee Benefits
The Employee Benefits health plan was administered by Blue Cross Blue Shield of Texas from October
2017 to December 2017 and transitioned to Cigna in January 2018. This fund is funded biweekly from
employee contributions and City operating funds. The City’s stop loss insurance policy limits the City’s
liability to $200,000 per individual per year. The liability for outstanding losses includes $1,689,249 for
claims incurred but not reported as of September 30, 2018.
Property & Casualty
The City self-insures for liability coverage lines. Licensed adjusters employed by the City process liability
claims utilizing the services of a third party administrator. To protect the City from catastrophic loss over
the self-insured retention amount, the City carries excess liability coverage through Allied World
Insurance Company and Colony Insurance Company. Excess liability premiums are funded by calculated
contributions from the City’s operating funds.
For fiscal year 2018, City real and personal property and equipment was insured by Affiliated FM
Insurance Company. Premiums are funded annually from contributions from the City's operating funds.
The City carried a property insurance policy with a deductible between two percent of the Total Insured
Value per property per occurrence, depending on type of loss and location of property. Direct and indirect
losses have been paid out of the Property Casualty fund with losses exceeding the City’s deductible for a
hail damage event that occurred City-wide on March 18, 2018. The settlement for that claim event is
pending.
Workers’ Compensation
The City self-insures for Workers’ Compensation coverage. Licensed adjusters employed by the City
process claims utilizing the services of a third party administrator. To protect the City, from catastrophic
loss over the self-insured retention amount, an excess Workers’ Compensation policy is carried through
Colony Insurance Company. Excess workers’ compensation policy premiums are funded by calculated
contributions from the City’s operating funds as well as biweekly contributions via payroll based on risk
codes established by the Texas Department of Insurance.
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
Unemployment
As a reimbursing employer, the City uses the Unemployment Insurance Fund to pay qualified claims filed
under the Texas Unemployment Compensation Act. Biweekly contributions to fund this activity are based
on a percentage of payroll determined annually during the budget process. In fiscal year 2018, the
Unemployment Insurance Fund did not receive contributions as a percentage of payroll due to the
adequate working capital balance at the end of the prior year.
Liability Recognition
Liabilities in the insurance funds are reported to the carrier when a covered loss can be reasonably
estimated to approach one-half of the City’s self-insured retention and recorded in the financial
statements when it is a probable liability and the amount of the loss can be reasonably estimated.
Liabilities include an amount for claims incurred but not reported. Based on the most recent actuarial
study, the City has recorded a potential liability of $1,075,078 in the property and casualty fund and a
potential liability of $719,171 in the Workers’ Compensation fund.
Changes in the balances of claims liabilities for the self-insurance funds accounted for as Internal Service
Funds for fiscal years 2018 and 2017 are as follows:
2018 2017
Unpaid claims, October 1 $ 2,253,369 $ 2,394,706
Incurred claims (including IBNR’s) 12,611,077 8,313,925
Claims paid (11,380,948) (8,455,262)
Unpaid claims, September 30 $ 3,483,498 $ 2,253,369
Amounts due in one year $ 3,483,498 $ 2,253,369
21. BRAZOS VALLEY SOLID WASTE MANAGEMENT AGENCY, Inc. (BVSWMA, Inc.)
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.
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.
The powers of BVSWMA, Inc. are vested in a seven member Board of Directors, with each City Council
appointing three members and the seventh member to be selected by an approval process set forth in
the Articles of Incorporation. The bylaws for BVSWMA, Inc. establish powers that include the issuance of
debt, acquisition of land and equipment, the hiring of a general manager and staff to maintain and
operate the facilities, and the establishment of tipping fees. BVSWMA, Inc. revenues are derived from
tipping fees paid by landfill customers that include the Cities of Bryan and College Station, other
unaffiliated businesses and the general public.
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
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 the assets of the Corporation shall
be distributed equally between the Cities and any remaining liabilities of the corporation shall be shared
equally between the Cities.
In 2010, the City issued $5,145,000 in Certificates of Obligation, Series 2010, to finance the construction
of the Twin Oaks Landfill site. BVSWMA, Inc. has agreed to pay the City an amount equal to the future
debt service requirements of these certificates of obligation. At September 30, 2018, the City reported a
receivable in the amount of $2,955,000, of which $230,000 is due and payable to the City within one year.
BVSWMA, Inc. owns two landfill sites:
• The initial landfill site known as Rock Prairie Landfill, located in College Station, was closed in 2011 as
it reached operating capacity. Certain maintenance and monitoring functions will be performed at
the site for thirty years after closure. 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.
• The Twin Oaks Landfill, located in Grimes County, was opened in 2011 and has an expected capacity
of over 50 years.
A summary of BVSWMA’s audited annual financial statements for September 30, 2018 and 2017 and the
years then ended are as follows:
2018 2017
Current assets and other assets $ 15,591,168 $ 13,066,289
Capital assets 31,445,828 31,628,653
Total assets 47,036,996 44,694,942
Current liabilities 1,012,084 1,528,640
Noncurrent liabilities 11,326,399 11,518,819
Total liabilities 12,338,483 13,047,459
Deferred gain on refunding 176,028 210,797
Total deferred inflows of resources 176,028 210,797
Net investment in capital assets 24,879,800 24,557,854
Unrestricted 9,642,685 6,878,832
Total net position $ 34,522,485 $ 31,436,686
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
Revenues
Landfill charges $ 10,470,981 $ 9,434,698
Compost facility revenue 294,501 366,063
Miscellaneous revenue 33,991 26,146
Total revenues 10,799,473 9,826,907
Operating expenses (7,647,151) (7,513,953)
Interest expense (255,067) (281,527)
Other non-operating revenues 188,544 32,627
Change in net position 3,085,799 2,064,054
Net position, beginning of year 31,436,686 29,372,632
Net position, end of year $ 34,522,485 $ 31,436,686
The City’s undivided 50% share of BVSWMA, Inc.’s net position for fiscal year 2018 was $17,261,241 and
is reflected in the Sanitation Fund. A copy of BVSWMA, Inc.’s financial statements may be obtained from
the City’s Fiscal Services Department.
22. 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 over 880 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 choose to
receive their retirement benefit in one of seven actuarially equivalent payment 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.
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
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
Annuity increase (to retirees) 50% of CPI repeating
Employees covered by benefit terms at the December 31, 2017 valuation and measurement date are as
follows:
Inactive employees or beneficiaries currently receiving benefits 445
Inactive employees entitled to but not yet receiving benefits 520
Active employees 905
Total Covered Employees 1,870
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 13% and 13% in calendar
years 2018 and 2017, respectively. The City’s contributions to TMRS for fiscal year 2018 were $7,501,446
and were greater than the required contributions of $7,483,465.
Net Pension Liability
The City’s Net Pension Liability (NPL) was measured as of December 31, 2017, 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, 2017 actuarial valuation was determined using the
following actuarial assumptions:
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
Inflation 2.5% per year
Overall payroll growth 3.00%
Investment rate of return 6.75%, net of pension plan investment expense
including inflation
Salary increases were based on service-related tables. Mortality rates for active members, retirees, and
beneficiaries were based on the gender-distinct RP2000 Combined Mortality Table with Blue Collar
Adjustment, 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, 2017 valuation were based on the results of actuarial
experience studies. Assumptions are reviewed annually.
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% 6.35%
Core Fixed Income 10.0% 1.00%
Non-Core Fixed 20.0% 3.90%
Real Return 10.0% 3.80%
Real Estate 10.0% 4.50%
Absolute Return 10.0% 3.75%
Private Equity 5.0% 7.50%
Total 100.0%
Discount Rate
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
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 7.0% 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 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 12/31/2016 $ 267,674,838 $ 226,024,775 $ 41,650,063
Changes for the year:
Service cost
8,418,324
-
8,418,324
Interest 17,986,722
- 17,986,722
Differences between expected and
actual 1,192,275
- 1,192,275
Changes of assumptions
-
-
-
Contributions—employer
-
7,223,267
(7,223,267)
Contributions—employee
- 3,773,603 (3,773,603)
Net investment income
- 31,325,172 (31,325,172)
Benefit payments, including
refunds of employee contributions (10,828,101) (10,828,101)
-
Administrative expense
-
(162,346) 162,346
Other changes - (8,228) 8,228
Net changes 16,769,220 31,323,367 (14,554,147)
Balances at 12/31/2017
$ 284,444,058 $ 257,348,143 $ 27,095,915
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the City, as well as what the City’s net pension liability
(asset) would be if it were calculated using a discount rate that is 1-percentage-point lower or 1-percentage-
point higher than the current rate:
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
1% Decrease
5.75%
Current Discount Rate
6.75%
1% Increase
7.75%
City’s Net Pension Liability (Asset) $69,618,084 $27,095,915 ($7,527,694)
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
For the year ended September 30, 2018, the City recognized pension expense of $8,761,018.
Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension
At September 30, 2018, the City reported deferred outflows and inflows of resources related to pensions
from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between actuarial assumptions and actual
experience $ 1,657,969 $ 266,287
Changes of assumptions 1,434,725 -
Differences between projected earnings and actual
earnings - 6,554,487
Contributions subsequent to the measurement date 5,492,869 -
Total $ 8,585,563 $ 6,820,774
Deferred outflows of resources, of $5,492,869 related to pensions resulting from contributions
subsequent to the measurement date, will be recognized as a reduction of the net pension liability for
the measurement year ending December 31, 2018 and recognized in the City’s financial statements as of
September 30, 2019.
Other amounts reported as deferred outflows and inflows of resources related to pensions will be
recognized in pension expense in the following years indicated below:
Fiscal Year Ending
September 30
Net deferred outflows (inflows) of
resources
2019 $ 1,215,672
2020 885,422
2021 (2,857,280)
2022 (2,971,894)
Thereafter -
Total $ (3,728,080)
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
23. OTHER POST EMPLOYMENT BENEFITS
Plan Description
Plan administration: As required by state laws, in addition to the pension benefits described in Note 22,
the City makes available certain postretirement benefits to employees who meet TMRS retirement
qualifications, retire from City employment, and enroll in the plan before the effective date of their
retirement. The City’s OPEB Plan is a single employer defined benefit plan, defined by City policy. The
OPEB Plan does not issue a separate report that includes financial statements and required
supplementary information for the OPEB Plan.
Plan membership. At September 30, 2018 membership consisted of the following:
Medical and/or
Dental Benefits
Life
Insurance
Benefits
Retirees and Retiree Spouses 82 180 Actives Employees 887 887
969 1,067
Benefits provided: The City’s defined benefit Other Post-Employment Benefits (OPEB) Plan offers
medical, dental, vision, drug, and life insurance benefits to retired employees and their eligible
dependents. The OPEB Plan is a single employer defined benefit OPEB plan administered by the City. The
benefit levels offered to retired employees and eligible dependents are the same as those afforded to
active employees as the City’s group health insurance plan covers both active and retired members. All
medical, dental, vision and drug care benefits are provided through the City’s self-insured health plan. As
long as monthly premium payments are made, the healthcare plan provides coverage until age 65 for
retired employees and eligible dependents enrolled in the City’s OPEB Plan. The life insurance offered
though the OPEB Plan provides a $10,000, fully insured death benefit coverage upon retirement, which
ceases upon attainment of age 65. The Life insurance benefit for eligible retirees is paid entirely by the
City.
Contributions: Benefit provisions, as well as retiree premium contributions, are established by City
management. The City determines the employer and participant contribution rates annually, based on
recommendations of City staff and the City’s benefit consultant. For the year ended September 30, 2018,
the City’s average contribution rate was 2.6 percent of covered-employee payroll.
Investments
Investment policy: The goal of the Plan’s investment program is to generate adequate long-term returns
that, when combined with contributions, will result in sufficient assets to pay the present and future
obligations of the Plan. The Plan has a Balanced Risk Tolerance with a Strategic Asset Allocation of the
following:
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
Asset Target Allocation
Class Allocation Range
Cash 5.0% 0 - 20%
Fixed Income 35.0% 30% - 50%
Equity 60.0% 50% - 70%
Total 100.0%
Concentrations: Assets of the OPEB plan are held in Trust by PARS which is fully discussed in Note 24 to
these financial statements.
Rate of return: For the year ended December 31, 2017, the annual money-weighted rate of return on
investments, net of investment expense, was 1.88 percent. The money-weighted rate of return expresses
investment performance, net of investment expense, adjusted for the changing amounts actually
invested.
Receivables
The OPEB plan has no receivables from long-term contracts with the City for contributions at September
30, 2018.
Allocated Insurance Contracts
The OPEB plan has no allocated insurance contracts excluded from OPEB plan assets at September 30,
2018.
Reserves
The OPEB plan has no reserves recorded at September 30, 2018.
Net OPEB Liability
The components of the net OPEB liability of the City at September 30, 2018 based on the December 31,
2017 measurement and actuarial valuation date, were as follows:
Total OPEB liability - ending
$7,815,261
Plan fiduciary net position - ending (1,521,285)
Net OPEB liability - ending
$6,293,976
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
Plan fiduciary net position as a percentage of total of total
OPEB liability
19.47%
Changes in the Net OPEB Liability
For the year ended September 30, 2018, the City recognized reduction in the OPEB liability of
$11,528,149. Effective January 1, 2018, the City has made the following changes to the benefits offered
under its Other Post Employment Benefit Plan. To be eligible for premium pricing for medical, dental,
vision, and drug benefits at the time of retirement, employees must:
• Meet TMRS retirement qualifications,
• Be 55 years of age or older,
• Have five (5) years of employment at the City of College Station,
• Be enrolled in the plan before the effective date of their retirement.
In addition, certain actuarial changes were made when enacting GASB 75 that affected the Net OPEB
Liability. Those changes included:
• The Entry Age Normal Actuarial Cost Method must be used to attribute the actuarial present value
of benefits to service periods in determining the OPEB Liability. This differed from the Projected
Unit Credit Cost Method previously used by the City.
• Discount Rate changes were allowed under GASB 75. Those changes included that for the
unfunded portion of the plan, the discount rate is based on yields of 20-year, tax-exempt general
obligation municipal bonds with an average rating of AA/Aa or higher. For the funded portion,
however, the City could continue to use an assumption similar to the current discount rate.
• Instead of recording expense equal to the Annual Required Contribution (ARC), GASB No. 75
required expensing the change in Net OPEB Liability from one period to the next. Some sources
of this change are expensed immediately, while others are amortized over a period of
approximately ten to twenty years depending on plan demographics.
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
Components of the change in the Net OPEB Liability is as follows:
Increase (Decrease)
Total OPEB
Liability
Plan Fiduciary
Net Position
Net OPEB
Liability
Balances as of December 31,
2016 $ 17,822,125 $ - $ 17,822,125
Changes for the year:
Service cost
941,652 -
941,652
Interest
698,156 -
698,156
Changes of benefit terms
(7,476,535) -
(7,476,535)
Differences between
expected and actual
experience
(707,212) -
(707,212)
Changes of assumptions or
other inputs
(2,874,882) -
(2,874,882)
Contributions—employer -
2,081,852
(2,081,852)
Net investment income -
28,378 (28,378)
Administrative expenses (902) 902
Benefit payments, including
refunds of employee
contributions (588,043)
(588,043)
-
Net changes
(10,006,864)
1,521,285
(11,528,149) Balances as of December 31,
2017 $ 7,815,261 $ 1,521,285 $ 6,293,976
Actuarial assumptions. The total OPEB liability for the year ended September 30, 2018 as measured as
of December 31, 2017 was determined by an actuarial valuation as of that date using the following
actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
Inflation 3.0% Salary increases 4% to 11% including inflation Discount rate 7.00% (3.78% in prior year before establishment of Trust) Healthcare cost
trend rates
8.0% in FY19 declining by 0.5% per year to rate of 4.75% in
FYE 2026 and beyond
Mortality rates were based on the RP-2000 Combined Mortality Table for Males or Females, as
appropriate, with adjustments for mortality improvements based on Scale BB. The actuarial
assumptions used in the December 31, 2017 valuation were based on the results of an actuarial
experience study for the period December 31, 2010 to December 31, 2014.
The long-term expected rate of return on OPEB 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
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. Best estimates of arithmetic
real rates of return for each major asset class included in the target asset allocation are summarized in
the following table:
Expected
Asset Target
Real Rate
of Weighted
Class Allocation Return Average
Cash 5.0% 0.75% 0.04% Fixed Income 35.0% 3.56% 1.25% Equity 60.0% 5.75% 3.45% Total 100.0% N/A 4.74%
Discount rate. The discount rate used to measure the total OPEB liability was 7.0 percent. The discount
rate used to determine the total OPEB Liability as of the beginning of the measurement year prior to the
establishment of the OPEB trust was 3.78%. The weighted average of the Expected Real Rate of Return
is added to the Expected Long-Term Inflation assumption and reduced by expected investment expenses
(4.74% + 3.00% - 0.75% = 6.99%). This result is then rounded to the nearest 25 basis points to obtain
the Expected Long-Term Rate of Return of 7.00%.
The projected cash flows into the plan are equal to projected benefit payments out of the plan plus
prefunding contributions that have been approved by the City Council. The projection of cash flows used
to determine the discount rate assumed that City contributions will be made at rates equal to the
actuarially determined contribution rates.
The assumed rate of general inflation has been updated since the valuation used for the September 30,
2017 liability to reflect the actuary’s best expectation of future plan experience.
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
The long-term expected rate of return for the plan is 7.0 percent. The plan operates on a pay as you go
basis and accumulates assets in trust in addition to the pay as you go amount.
Based on the discount rate assumptions, the OPEB plan’s fiduciary net position was projected to be
available to make all projected future benefit payments of current plan members. Therefore, the long-
term expected rate of return on OPEB plan investments was applied to all periods of projected benefit
payments to determine the total OPEB liability.
Sensitivity of the net OPEB liability to changes in the discount rate. The following presents the net OPEB
liability of the City, as well as what the City’s net OPEB liability would be if it were calculated using a
discount rate that is 1-percentage point lower (6.0 percent) or 1-percentage-point higher (8.0 percent)
than the current discount rate:
1%
Decrease
(6.00%)
Current
Discount
Rate
(7.00%)
1%
Increase
(8.00%)
Net OPEB liability $6,841,856 $6,293,976 $5,798,335
Sensitivity of the net OPEB liability to changes in the healthcare cost trend rates. The following presents
the net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it were calculated
using healthcare cost trend rates that are 1-percentage-point lower (7.0 percent decreasing to 3.75
percent) or 1-percentage-point higher (9.0 percent decreasing to 5.75 percent) than the current
healthcare cost trend rates:
1%
Decrease
(7.00%
decreasing
to 3.75%)
Current
Healthcare
Cost Trend
Rates
(8.00%
decreasing
to 4.75%
1%
Increase
(9.00%
decreasing
to 5.75%)
Net OPEB liability $5,535,091 $6,293,976 $7,184,860
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to
OPEB
For the fiscal year ended September 30, 2018, the City recognized OPEB expense/(income) of
$(6,358,056). At September 30, 2018, the City reported changes to deferred outflows of resources and
deferred inflows of resources related to OPEB from the following sources as follows:
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Differences between actuarial assumptions
and actual experience $ - $ 609,396
Changes of assumptions
-
2,477,250
Differences between projected and actual
-
1,595
Contribution subsequent to the
measurement date 1,323,623 -
Total $ 1,323,623 $ 3,088,241
Deferred outflows of resources, of $1,323,623 related to OPEB resulting from contributions
subsequent to the measurement date, will be recognized as a reduction of the net OPEB liability for
the measurement year ending December 31, 2018 and recognized in the City’s financial statements as
of September 30, 2019. Amounts reported as deferred outflows of resources and deferred inflows of
resources related to OPEB will be recognized in OPEB expense as follows:
Fiscal Year Ending
September 30
Deferred inflows of
resources
2019 (495,847)
2020 (495,847)
2021 (495,847)
2022 (495,846)
2023 (495,448)
Thereafter (609,406)
Total $ 3,088,241
24. OPEB TRUST
On September 11, 2017, the City Council approved a resolution adopting the Public Agencies Retirement
Services (PARS) Post-Retirement Health Care Plan Trust and on September 25, 2017, the City Council
passed resolution 2017-0564 appropriating the funds. Effective September 27, 2017, the City entered
into a section 115 Irrevocable Exclusive Benefit agent multiple-employer trust to fund its Other
Postemployment Benefits Obligation. Trust and Investment Management Services are provided by Public
Agency Retirement Services (PARS) and is administered by the City. The investment manager that
executes investment transactions is Highmark Capital Management, Inc. and the custodian of the trust’s
funds is US Bank.
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
With the establishment of the trust, the City can pre-fund (make annual payments in advance of the
obligation) and allocate funds for the express purpose of funding future OPEB costs. The investment
returns can be used to reduce the actuarial contributions and can result in lower long-term costs of the
plan. As of September 30, 2018 the trust’s balance was $2,646,668.
25. DEFERRED COMPENSATION PLAN
The City offers its employees two deferred compensation plans created in accordance with Internal
Revenue Code ("IRC") 457. The plans, as amended, are available to all employees and permits them to
defer a portion of their salary until future years. Participation in either plan is optional. The deferred
compensation is not available to employees until termination, retirement, death, or emergency.
All amounts of compensation deferred under the plans (until paid or made available to the employee or
other beneficiary) were placed in trusts for the exclusive benefit of the participants and the beneficiaries.
This action is in accordance with changes made to IRC Section 457. The City does not have any fiduciary
responsibility or administrative duties relating to the deferred compensation plan other than remitting
employees’ contribution to the trustees. Accordingly, the City has not presented the assets and liabilities
of the Plans in these basic financial statements.
26. COMMITMENTS AND CONTINGENCIES
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.
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.
Construction Commitments
The City accounts for construction contracts as costs are incurred and has contractual commitments of
$41,952,954 in the Capital Projects Funds, $3,028,547 in the Water Fund, $6,361,388 in the Wastewater
Fund, and $6,116,641 in the Electric Fund related to construction projects. These commitments will be
funded primarily from long-term debt.
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
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
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 CRRs 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.
Tax Abatements
As mentioned in Note 19, the City is authorized under Chapter 380 of the Texas Local Government Code
to provide economic development incentives to support the expansion of local business activity. The
terms of each agreement are limited by the underlying agreements approved by the City Council. The
City may recapture the abated taxes in case the party subject to the agreement is in default and typically
requires that certain economic conditions be met before any abatement is received from the City.
For the fiscal year ended September 30, 2018, the City had the following commitments under economic
development incentive agreements:
• Strategic Behavioral Health – Annual tax abatement based on improvements to property valuation
beginning 2015 for an eight year period. A total of $6,005,946 remains committed under this
agreement.
• Kalon, Inc. – Annual cash incentive beginning 2014 for a seven year period not to exceed $1,093,549.
A total of $984,195 remains committed under this agreement.
• Science Park – Annual cash incentive equal to 50% of the incremental taxable value for the year with
a total amount to be paid out not to exceed $1,000,000. A total of $1,000,000 remains committed
under this agreement.
• ViaSat, Inc. – Annual cash incentive based on taxes assessed and collected by the City and then shared
with the City of Bryan pursuant to a Joint Agreement with a total amount to be paid out not to exceed
$450,000 over a six year period. A total of $450,000 remains committed under this agreement.
• CTX Land Investments, LLC – (Dartmouth Extension) – Upon completion of construction of Phase 1 of
the Dartmouth Extension project, cash incentive equal to 25% of the cost of construction up to a
maximum of $250,000. A total of $250,000 remains committed under this agreement. In addition,
upon completion of Phase 1 of construction, any third party developer of designated land will be
City of College Station
Notes to the Financial Statements
For the Fiscal Year Ended September 30, 2018
entitled to a dollar for dollar credit up to the maximum amount paid for roadway impact fees. A total
of $0 is committed under this agreement.
• College Station Town Center, LP – Contract Payments calculated as a tax abatement based on
completion of specified capital projects and improvements to property valuation beginning 2017 for
a twenty year period. The amount of the tax abated is limited by and tied to the completion of the
specified capital projects.
27. SUBSEQUENT EVENTS
Subsequent events have been evaluated through the date of the auditors’ report, March 8, 2019, which
is the date the financial statements were available to be issued.
2014 2015 2016 2017
6,408,154$ 7,447,204$ 7,927,963$ 8,418,324$
15,448,489 16,281,185 16,959,936 17,986,722
Changes of benefit terms - - - -
and actual experience (1,163,171)969,442 520,233 1,192,275
- 3,565,506 - -
(9,022,396)(9,612,289) (10,055,239) (10,828,101)
11,671,076 18,651,048 15,352,893 16,769,220
221,999,821 233,670,897 252,321,945 267,674,838
Total pension liability - ending (a) $ 233,670,897 252,321,945$ 267,674,838$ 284,444,058$
Plan fiduciary net position:
Contributions - employer 5,916,175$ 6,435,064$ 6,465,626$ 7,223,267$
Contributions - employee 3,060,843 3,420,245 3,542,203 3,773,603
Net investment income 11,457,666 312,181 14,322,932 31,325,172
Benefit payments, including refunds
of employee contributions (9,022,396) (9,612,289) (10,055,239) (10,828,101)
Administrative expense (119,620) (190,146) (161,748) (162,346)
Other (9,835) (9,391) (8,715) (8,228)
Net change in plan fiduciary net position 11,282,833 355,664 14,105,059 31,323,367
Plan fiduciary net position - beginning 200,281,220 211,564,053 211,919,716 226,024,775
Plan fiduciary net position - ending (b)211,564,053 211,919,716 226,024,775 257,348,143
Net pension liability - ending (a) - (b)22,106,844$ 40,402,229$ 41,650,063$ 27,095,915$
Plan fiduciary net position as a percentage
of total pension liability 90.54%83.99%84.44%90.47%
Covered payroll 43,726,328$ 48,579,284$ 50,593,256$ 53,860,040
Net pension liability as a percentage
of covered employee payroll 50.56%83.17%82.32%50.31%
Note: This schedule is intended to present information for ten years. However, previous years'
information is not available.
CITY OF COLLEGE STATION, TEXAS
Benefit payments, including refunds of employee
contributions
Net change in total pension liability
Total pension liability - beginning
Total pension liability:
Service cost
Interest
Differences between expected
Change in assumptions
Required Supplementary Information
Texas Municipal Retirement System
Schedule of City's Changes in Net Pension Liability and Related Ratios
Last Four Fiscal Years, Ended December 31
(Unaudited)
(5)
(2)Actuarially (6)
Contribution determined Contributions as
in relation to (3)contributions as a percentage
(1)the Contribution a percentage of covered
Actuarially actuarially excess (4)of covered employee
Fiscal determined determined (deficiency)Covered payroll payroll
Year contribution contribution (2) - (1)payroll (1)/(4)(2)/(4)
2015 5,881,274$ 6,068,368$ 187,094$ 45,654,271$ 12.88%13.29%
2016 6,447,330 6,447,328 (2) 49,982,796 12.90%12.90%
2017 6,969,939 7,018,244 48,305 53,016,848 13.15%13.24%
2018 7,483,465 7,501,446 17,981 53,860,040 13.89%13.93%
Notes to Schedule
Valuation date:Actuarially determined contribution rates are calculated as of
December 31 and become effective in January 13 months later.
Method and assumptions used to determine contribution rates:
Actuarial cost method Entry age Normal
Amortization method Level percentage of payroll, closed
Remaining amortization period 28 years
Asset valuation method 10-years smoothed market; 15% soft corridor
Inflation 2.50%
Salary increases 3.50% to 10.5% 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.
The data in this schedule is based on the City's fiscal year-end, not the valuation/measurement date as provided in other
schedules of this report.
CITY OF COLLEGE STATION, TEXAS
Required Supplementary Information
(Unaudited)
Texas Municipal Retirement System
Schedule of City's Contributions
Last Ten Fiscal Years
2017
941,652$
698,156
Changes of benefit terms (7,476,535)
and actual experience (707,212)
(2,874,882)
(588,043)
(10,006,864)
17,822,125
Total OPEB liability - ending (a)7,815,261$
Plan fiduciary net position:
Contributions - employer 2,081,852
Net investment income 28,378
Administrative expense (902)
Benefit payments (588,043)
Net change in plan fiduciary net position 1,521,285
Plan fiduciary net position - beginning -
Plan fiduciary net position - ending (b)1,521,285
Net OPEB liability - ending 1 - 2 6,293,976$
Plan fiduciary net position as a percentage of total
OPEB liability 19.47%
Covered payroll 54,714,253$
Net pension OPEB as a percentage
of covered employee payroll 11.50%
Note: This schedule is intended to present information for ten years. However,
previous years' information is not available.
The following assumptions have been changed since the previous valuation:
a. The assumed rateof general inflation has been updated since the previous valuation to
reflect the actuary's best expectation of future plan experience.
b. Assumptions for Per Capita Health Benefit Costs, Health Benefit Cost and Retiree
Contribution trends and the Expense Trend rate have been updated since the previous
valuation to reflect the recent experience and its effect on our short-term expectations.
c. The Administrative and Stop-Loss Expense assumptions, for expenses which are directly
related to the payment of benefits, were updated to reflect current expense levels.
d. The discount rate was changed as a result of requirements by GASB No. 75.
e. The actuarial funding method has been changed to Entry Age as a result of the
requirements of GASB No. 75.
Benefit revisions have been adopted since the prior valuation. The benefit changes for future
retirees include the addition of age 55 and 5 years of City of College Station Service
requirement to be eligible for OPEB provided by the City.
Total OPEB liability - beginning
Change in assumptions
Total OPEB liability:
Service cost
Interest
Differences between expected
Benefit payments
Net change in total OPEB liability
CITY OF COLLEGE STATION, TEXAS
Required Supplementary Information
City of College Station Employees Other Post-Employment Benefits Plan
Schedule of Changes in Other Post-Employement Benefits and Related Ratios
Fiscal Year, Ended December 31
Last 10 Fiscal Years
(Unaudited)
(2)
Contribution (6)
in relation to (3)Contributions as
(1)the Contribution a percentage
Actuarially actuarially excess (4)of covered
Fiscal determined determined (deficiency)Covered payroll
Year contribution contribution (2) - (1)payroll (2)/(4)
2018 516,572$ 1,489,139$ 972,567$ 57,246,277$ 2.60%
Notes to Schedule
Valuation date:December 31, 2017
Actuarially determined contribution rates are calculated as of
Measurement date:December 31, 2017
Method and assumptions used to determine contribution rates:
Actuarial cost method Entry age
Amortization method Level percentage of payroll, open
Remaining amortization period 30 years
Asset valuation method Market value
Inflation 3.00%
Healthcare cost trend rates 8.00% for FY19 decreasing 0.50% per year to an ultimate rate of
4.75% for FY26 and later years
Salary increases 4.00% to 11.00% inlcuding inflation
Discount rate 7.00%
Aggregate payroll growth 3.50%
Retirement age Experience-based tables of rates that are specific to the class
of employee
Mortality i. Active Paricipants: RP2000 Combined Mortality Table for
healthy lives with Blue Collar Adjustment with male rates
multiplied by 54.5% and females rates multiplied by 51.5%.
These rates are projected on a fully generational basis by
scale BB.
ii. Retirees and Retiree Spouses: RP-2000 Combined Mortality
Table with Blue Collar Adjustment with male rates multiplied
by 109% and female rates multiplied by 103%. These rates
are projected on a fully generataional basis by scale BB.
iii. Disabled Retirees: RP-2000 Combined Mortality Table
with Blue Collar Adjustment with male rates multiplied by
109% and females rates multiplied by 103% with a 3-year
set-forward for both males and females. In addition, a 3%
minimum mortality rate is applied. These rates are projected
on a fully generational basis by scale BB.
The data in this schedule is based on the City's fiscal year-end, not the valuation/measurement date as provided in other
schedules of this report.
Note: This schedule is intended to present information for ten years. However, previous years' information is not available.
Schedule of Contributions
Last Ten Fiscal Years
CITY OF COLLEGE STATION, TEXAS
Required Supplementary Information
(Unaudited)
City of College Station Employees Other Post-Employment Benefit Plan
Annual Money-Weighted
Year Rate of Return
2017 1.88%
The information in this schedule has been determined as of the measurement date
(December 31) of the City's net OPEB liability and is intended to show information for 10 years.
However, until a full 10-year trend is compiled in accordance with the provision, only periods for
which such information is available are presented.
Last 10 Years*
(Unaudited)
City of College Station Employees Other Post-Employment Benefits Plan
CITY OF COLLEGE STATION, TEXAS
Schedule of Investment Returns
Required Supplementary Information
Year Ended December 31
Variance with
Actual GAAP Adjustments Actual Budget Final Budget
Original Budget Final Budget Basis Budget Basis Basis Over (Under)
Revenues
Ad valorem taxes $ 23,976,222 $ 23,976,222 $ 24,073,003 $ - $ 24,073,003 $ 96,781
Sales taxes 28,526,512 28,526,512 28,799,040 - 28,799,040 272,528
Other taxes 3,067,573 3,067,573 3,457,485 - 3,457,485 389,912
Licenses and permits 1,870,750 1,870,750 1,772,959 - 1,772,959 (97,791)
Intergovernmental 415,720 629,366 910,169 - 910,169 280,803
Charges for services 3,590,631 3,590,631 3,940,837 - 3,940,837 350,206
Fines, forfeits, and penalties 3,049,650 3,049,650 3,206,835 - 3,206,835 157,185
Investment income 200,000 200,000 423,608 28,725 452,333 252,333
Rents and royalties 174,500 174,500 219,538 - 219,538 45,038
Contributions - - 7,361 - 7,361 7,361
Other 394,350 418,444 642,547 - 642,547 224,103
Total revenues 65,265,908 65,503,648 67,453,382 28,725 67,482,107 1,978,459
Expenditures
Police 23,026,482 23,142,565 22,631,648 - 22,631,648 (510,917)
Fire 18,975,543 19,147,255 19,624,919 - 19,624,919 477,664
Public works 10,069,849 10,260,643 9,575,300 - 9,575,300 (685,343)
Parks and recreation 9,612,989 9,816,446 9,033,748 - 9,033,748 (782,698)
Library 1,122,463 1,122,463 1,118,522 - 1,118,522 (3,941)
Planning and development services 4,290,509 4,318,684 3,740,969 - 3,740,969 (577,715)
Information technology 5,392,172 5,392,172 4,488,885 - 4,488,885 (903,287)
Fiscal services 4,042,380 4,056,885 3,947,830 - 3,947,830 (109,055)
General government 6,903,947 7,104,800 6,066,416 - 6,066,416 (1,038,384)
Contributions 1,363,624 1,363,624 1,380,580 - 1,380,580 16,956
Other 150,000 52,471 - - - (52,471)
Capital outlay 162,709 164,025 319,406 - 319,406 155,381
Total expenditures 85,112,667 85,942,033 81,928,223 - 81,928,223 (4,013,810)
Excess (deficit) of revenues over (under) expenditures (19,846,759) (20,438,385) (14,474,841) 28,725 (14,446,116) 5,992,269
Other financing sources (uses)
Transfers in 18,585,855 18,585,855 18,370,943 (366,811) 18,004,132 (581,723)
Transfers out (3,031,702) (3,031,702) (3,031,702) - (3,031,702) -
Contingency (303,000) (175,840) - - - 175,840
Total other financing sources (uses) 15,251,153 15,378,313 15,339,241 (366,811) 14,972,430 (405,883)
Net change in fund balances (4,595,606) (5,060,072) 864,400 (338,086) 526,314 5,586,386
Fund balances - beginning 21,159,564 21,159,564 21,159,564 - 21,159,564 -
Prior period adjustment - - 2,706,262 - - -
Fund balances - ending $ 16,563,958 $ 16,099,492 $ 24,730,226 $ (338,086) $ 21,685,878 $ 5,586,386
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 the
sections titled Budgetary Basis of Accounting and Budgetary Control in Note 1, 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
For the Fiscal Year Ended September 30, 2018
COMBINING FINANCIAL STATEMENTS
General Fund(s)
General Fund - the City's primary operating fund, which accounts for all financial resources of the general
government, except those required to be accounted for in another fund. All general tax revenues and other
receipts that are not restricted by law or contractual agreement to some other fund are accounted for in this
fund. General operating expenditures, fixed charges and capital improvement costs that are not paid through
other funds are paid from the General Fund.
The General Fund Type has historically incorporated several funds, which have been reported collectively as the
General Fund in the City’s Comprehensive Annual Financial Report.
For the fiscal year ending September 30, 2018, the General Funds include:
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.
Spring Creek Local Government Corporation Fund – accounts for the revenue and expenditure associated with
the Spring Creek Corporate Campus.
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.
General Fund
Economic
Development
Spring Creek Local
Government
Corporation
Unclaimed
Property
Efficiency Time
Payment
Total General
Fund(s)
Assets
Cash and cash equivalents $ 19,225,098 $ 1,786,186 $ 12,878 $ 241,121 $ 50,407 21,315,690$
Equity in investments 3,322,438 308,799 2,226 41,685 8,715 3,683,863
Receivable (net of allow for uncollectible) 7,413,536 - - - - 7,413,536
Investments interest receivable 16,590 1,542 11 - 44 18,187
Inventories 44,764 - - - - 44,764
Prepaid costs 583,754 - - - - 583,754
Loan receivable 95,331 - - - - 95,331
Total assets $ 30,701,511 $ 2,096,527 $ 15,115 $ 282,806 $ 59,166 $ 33,155,125
Liabilities
Accounts payable $ 1,291,628 $ - $ 15,134 $ - $ - 1,306,762$
Accrued liabilities 2,212,005 - - 282,806 - 2,494,811
Interfund Payable - - 95,331 - - 95,331
Retainage payable 11,815 - - - - 11,815
Customer construction advances 1,496,379 - - - - 1,496,379
Refundable deposits 77,043 - - - - 77,043
Total liabilities 5,088,870 - 110,465 282,806 - 5,482,141
Deferred inflows of resources
Unavailable revenue-property taxes 216,179 - - - - 216,179
Unavailable revenue-other 666,236 - - - - 666,236
Total deferred inflow of resources 882,415 - - - - 882,415
Fund Balances
Nonspendable 628,518 - - - - 628,518
Assigned 2,128,177 - - - - 2,128,177
Unassigned 21,973,531 2,096,527 (95,350)- 59,166 24,033,874
Total fund balances (deficit) 24,730,226 2,096,527 (95,350) - 59,166 26,790,569
Total liabilities, deferred inflows of resources, and fund
balances $ 30,701,511 $ 2,096,527 $ 15,115 $ 282,806 $ 59,166 $ 33,155,125
September 30, 2018
CITY OF COLLEGE STATION, TEXAS
Combining Balance Sheet
General Fund(s)
General
Economic
Development
Spring Creek Local
Government
Corporation
Unclaimed
Property
Efficiency Time
Payment
Total General
Fund(s)
Revenues
Ad valorem taxes $ 24,073,003 $ - $ - $ - $ - $ 24,073,003
Sales taxes 28,799,040 - - - - 28,799,040
Other taxes 3,457,485 - - - - 3,457,485
Licenses and permits 1,772,959 - - - - 1,772,959
Intergovernmental 910,169 - - - - 910,169
Charges for services 3,940,837 - - - - 3,940,837
Fines, forfeits, and penalties 3,206,835 - - - 4,701 3,211,536
Investment income (loss) 423,608 25,414 (19) - 877 449,880
Rents and royalties 219,538 - - - - 219,538
Contributions (Revenue) 7,361 - - - - 7,361
Other 642,547 - - - - 642,547
Total revenues 67,453,382 25,414 (19) - 5,578 67,484,355
Expenditures
Police 22,631,648 - - - - 22,631,648
Fire 19,624,919 - - - - 19,624,919
Public works 9,575,300 - - - - 9,575,300
Parks and recreation 9,033,748 - 95,331 - - 9,129,079
Library 1,118,522 - - - - 1,118,522
Planning and development services 3,740,969 - - - - 3,740,969
Information technology 4,488,885 - - - - 4,488,885
Fiscal services 3,947,830 - - - 6,658 3,954,488
General government 6,066,416 98,600 - - - 6,165,016
Contributions 1,380,580 - - - - 1,380,580
Capital outlay 319,406 - - - - 319,406
Total expenditures 81,928,223 98,600 95,331 - 6,658 82,128,812
Excess (deficit) of revenues over (under)
expenditures (14,474,841) (73,186) (95,350) - (1,080) (14,644,457)
Other financing sources (uses)
Transfers in 18,370,943 875,000 - - - 19,245,943
Transfers out (3,031,702) - - - - (3,031,702)
Total other financing sources (uses) 15,339,241 875,000 - - - 16,214,241
Net change in fund balances 864,400 801,814 (95,350) - (1,080) 1,569,784
Fund balances - beginning 21,159,564 1,294,713 - - 60,246 22,514,523
Prior period adjustment 2,706,262 - - - - 2,706,262
Fund balances (deficit) - ending $ 24,730,226 $ 2,096,527 $ (95,350) $ - $ 59,166 $ 26,790,569
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, 2018
Variance with
Actual GAAP Adjustments Actual Budget Final Budget
Original Budget Final Budget Basis Budget Basis Basis Over (Under)
Revenues
Ad valorem taxes $ 23,976,222 $ 23,976,222 $ 24,073,003 $ - $ 24,073,003 $ 96,781
Sales taxes 28,526,512 28,526,512 28,799,040 - 28,799,040 272,528
Other taxes 3,067,573 3,067,573 3,457,485 - 3,457,485 389,912
Licenses and permits 1,870,750 1,870,750 1,772,959 - 1,772,959 (97,791)
Intergovernmental 415,720 629,366 910,169 - 910,169 280,803
Charges for services 3,590,631 3,590,631 3,940,837 - 3,940,837 350,206
Fines, forfeits, and penalties 3,049,650 3,049,650 3,206,835 - 3,206,835 157,185
Investment income 200,000 200,000 423,608 28,725 452,333 252,333
Rents and royalties 174,500 174,500 219,538 - 219,538 45,038
Contributions - - 7,361 - 7,361 7,361
Other 394,350 418,444 642,547 - 642,547 224,103
Total revenues 65,265,908 65,503,648 67,453,382 28,725 67,482,107 1,978,459
Expenditures
Police 23,026,482 23,142,565 22,631,648 - 22,631,648 (510,917)
Fire 18,975,543 19,147,255 19,624,919 - 19,624,919 477,664
Public works 10,069,849 10,260,643 9,575,300 - 9,575,300 (685,343)
Parks and recreation 9,612,989 9,816,446 9,033,748 - 9,033,748 (782,698)
Library 1,122,463 1,122,463 1,118,522 - 1,118,522 (3,941)
Planning and development services 4,290,509 4,318,684 3,740,969 - 3,740,969 (577,715)
Information technology 5,392,172 5,392,172 4,488,885 - 4,488,885 (903,287)
Fiscal services 4,042,380 4,056,885 3,947,830 - 3,947,830 (109,055)
General government 6,903,947 7,104,800 6,066,416 - 6,066,416 (1,038,384)
Contributions 1,363,624 1,363,624 1,380,580 - 1,380,580 16,956
Other 150,000 52,471 - - - (52,471)
Capital outlay 162,709 164,025 319,406 - 319,406 155,381
Total expenditures 85,112,667 85,942,033 81,928,223 - 81,928,223 (4,013,810)
Excess (deficit) of revenues over (under) expenditures (19,846,759) (20,438,385) (14,474,841) 28,725 (14,446,116) 5,992,269
Other financing sources (uses)
Transfers in 18,585,855 18,585,855 18,370,943 (366,811) 18,004,132 (581,723)
Transfers out (3,031,702) (3,031,702) (3,031,702) - (3,031,702) -
Contingency (303,000) (175,840) - - - 175,840
Total other financing sources (uses) 15,251,153 15,378,313 15,339,241 (366,811) 14,972,430 (405,883)
Net change in fund balances (4,595,606) (5,060,072) 864,400 (338,086) 526,314 5,586,386
Fund balances - beginning 21,159,564 21,159,564 21,159,564 - 21,159,564 -
Prior period adjustment - - 2,706,262 - - -
Fund balances - ending $ 16,563,958 $ 16,099,492 $ 24,730,226 $ (338,086) $ 21,685,878 $ 5,586,386
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 the
sections titled Budgetary Basis of Accounting and Budgetary Control in Note 1, 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
For the Fiscal Year Ended September 30, 2018
Variance with
Actual GAAP Adjustments Actual Budget Final Budget
Original Budget Final Budget Basis Budget Basis Basis Over (Under)
Revenues
Investment income $ 7,940 $ 7,940 $ 25,414 $ 2,669 $ 28,083 $ 20,143
Total revenues 7,940 7,940 25,414 2,669 28,083 20,143
Expenditures
General government 1,008,168 1,028,468 98,600 - 98,600 (929,868)
Other 20,000 20,000 - - - (20,000)
Total expenditures 1,028,168 1,048,468 98,600 - 98,600 (949,868)
Excess (deficit) of revenues over (under) expenditures (1,020,228) (1,040,528) (73,186) 2,669 (70,517) 970,011
Other financing sources (uses)
Transfers in 875,000 875,000 875,000 - 875,000 -
Total other financing sources (uses) 875,000 875,000 875,000 - 875,000 -
Net change in fund balances (145,228) (165,528) 801,814 2,669 804,483 970,011
Fund balances - beginning 1,294,713 1,294,713 1,294,713 - 1,294,713 -
Fund balances - ending $ 1,149,485 $ 1,129,185 $ 2,096,527 $ 2,669 $ 2,099,196 $ 970,011
CITY OF COLLEGE STATION, TEXAS
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Economic Development Fund
For the Fiscal Year Ended September 30, 2018
Variance with
Actual GAAP Adjustments Actual Budget Final Budget
Original Budget Final Budget Basis Budget Basis Basis Over (Under)
Revenues
Investment income (loss) $ - $ - $ (19) $ 19 $ - $ -
Total revenues - - (19) 19 -
Expenditures
Parks and recreation - 229,700 95,331 - 95,331 (134,369)
Total expenditures - 229,700 95,331 - 95,331 (134,369)
Excess (deficit) of revenues over (under) expenditures - (229,700) (95,350) 19 (95,331) 134,369
Other financing sources (uses)
Total other financing sources (uses) - - - - - -
Net change in fund balances - (229,700) (95,350) 19 (95,331) 134,369
Fund balances - beginning - - - - - -
Fund balances - ending $ - $ (229,700) $ (95,350) $ 19 $ (95,331) $ 134,369
CITY OF COLLEGE STATION, TEXAS
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Spring Creek Local Government Corporation Fund
For the Fiscal Year Ended September 30, 2018
Variance with
Actual GAAP Adjustments Actual Budget Final Budget
Original Budget Final Budget Basis Budget Basis Basis Over (Under)
Revenues
Fines, forfeits, and penalties $ 5,805 $ 5,805 $ 4,701 $ - $ 4,701 $ (1,104)
Investment income 485 485 877 76 953 468
Total revenues 6,290 6,290 5,578 76 5,654 (636)
Expenditures
Fiscal services 8,660 8,660 6,658 - 6,658 (2,002)
Total expenditures 8,660 8,660 6,658 - 6,658 (2,002)
Excess (deficit) of revenues over (under) expenditures (2,370) (2,370) (1,080) 76 (1,004) 1,366
Other financing sources (uses)
Total other financing sources (uses) - - - - - -
Net change in fund balances (2,370) (2,370) (1,080) 76 (1,004) 1,366
Fund balances - beginning 60,246 60,246 60,246 - 60,246 -
Fund balances - ending $ 57,876 $ 57,876 $ 59,166 $ 76 $ 59,242 $ 1,366
CITY OF COLLEGE STATION, TEXAS
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Efficiency Time Payment Fund
For the Fiscal Year Ended September 30, 2018
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 Avenue Cemetery Endowment Fund – to account for principal trust amounts received and related
interest income for the College Station Cemetery.
Hotel Tax Fund – account for the receipt and expenditure of funds received by the City from the assessment of
hotel and motel occupancy tax. Usage of funds is restricted to the construction and maintenance of convention
and civic facilities and to the promotion of tourism and arts within the City.
Community Development Fund – account for funds granted to the City by the Federal Department of Housing
and Urban Development for use on various community improvement projects.
Wolf Pen Creek Tax Increment Financing District Fund – account for the receipt and expenditure of funds
received by the City from the creation of a tax increment financing district for the Wolf Pen Creek area.
Parks Escrow Fund – account for the receipt and expenditure of funds received by the City from residential land
developers, who dedicate land, or money in lieu of land, for use in the development of community and
neighborhood parks in residential areas.
Sidewalk Zones – account for the receipt and expenditure of funds received by the City from residential land
developers, who dedicate land, or money in lieu of land, for use in the development of community and
neighborhood sidewalks.
Drainage Utility Fund – to account for the cost of drainage maintenance and drainage improvements made with
funds provided by a drainage utility fee and proceeds from the sale of general obligation bonds.
Truancy Prevention Fund – accounts 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.
Roadway Maintenance Fee Fund – account for funds which will help fix potholes and properly maintain streets
throughout College Station.
Fun For All Playground Fund – account for receipt and expenditure of funds for the construction of the inclusive
playground located at Central Park.
System-Wide Water Impact Fee Fund – account for fees collected to fund existing and future capital
improvement water projects that serve or will serve new developments within the City’s service area in lieu of
water utility rate increases.
System-Wide Wastewater Impact Fee Fund – account for fees collected to fund existing and future capital
improvement wastewater projects that serve or will serve new developments within the City’s service area in
lieu of water utility rate increases.
System-Wide Roadway Impact Fee Fund – account for fees collected to fund existing and future capital
improvement roadway projects that serve or will serve new developments within the City.
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.
Parks and Recreation Projects Fund – to account for the costs of new parks and improvements to existing parks
made with funds provided from the sale of general obligation bonds, certificates of obligation and by investing
those proceeds.
Court Technology
Fee Court Security Fee
Juvenile Case
Manager Fee Police Seizure
Memorial
Cemetery
Memorial
Cemetery
Endowment
Texas Avenue
Cemetery
Endowment Hotel Tax
Community
Development
Assets
Cash and cash equivalents $ 396,707 $ 28,746 $ 145,253 $ 111,722 $ 1,380,820 $ 1,058,934 $ 1,659,177 $ 17,281,021 $ 576,729
Equity in investments 68,584 4,970 25,112 19,315 238,719 183,071 286,842 2,987,578 99,706
Receivable (net of allow for uncollectible) - - - - 32,953 16,231 121 - 116,198
Investments interest receivable 342 25 125 96 1,192 914 1,432 14,918 -
Inventories - - - - 3,568,722 1,757,729 109 - -
Prepaid Costs - - - - - - - - -
Loans receivable - - - - - - - - 1,960,079
Total assets $ 465,633 $ 33,741 $ 170,490 $ 131,133 $ 5,222,406 $ 3,016,879 $ 1,947,681 $ 20,283,517 $ 2,752,712
Liabilities
Accounts payable $ - $ - $ - $ 3,050 $ - $ 97,353 $ 1,238 $ 1,167,044 $ 84,322
Accrued liabilities - 1,667 4,480 - - - - - 11,038
Retainage payable - - - - - 7,192 - 73,275 9,968
Total liabilities - 1,667 4,480 3,050 - 104,545 1,238 1,240,319 105,328
Deferred inflows of resources
Unavailable revenue-loans receivable - - - - - - - - 1,960,079
Unavailable revenue-other - - - - 32,953 16,231 120 - -
Total deferred inflow of resources - - - - 32,953 16,231 120 - 1,960,079
Fund balances
Restricted 465,633 32,074 166,010 128,083 - - - 12,277,170 687,305
Committed - - - - 5,189,453 2,896,103 1,946,323 6,766,028 -
Total fund balances 465,633 32,074 166,010 128,083 5,189,453 2,896,103 1,946,323 19,043,198 687,305
Total liabilities, deferred inflows of recources, and fund
balances $ 465,633 $ 33,741 $ 170,490 $ 131,133 $ 5,222,406 $ 3,016,879 $ 1,947,681 $ 20,283,517 $ 2,752,712
September 30, 2018
Special Revenue
CITY OF COLLEGE STATION, TEXAS
Combining Balance Sheet
Nonmajor Governmental Funds
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
Assets
Cash and cash equivalents $ 180,717 $ 6,098,111 $ 87,484 $ 1,298,360 $ 55,011 $ - $ 15,525 $ 625,909
Equity in investments 31,242 1,054,254 15,124 224,463 9,510 - 2,684 108,208
Receivable (net of allow for uncollectible) - - - 261,837 - - - -
Investments interest receivable 156 5,264 76 1,121 47 - 13 541
Inventories - - - - - - - -
Prepaid Costs - - - 1,708 - - - -
Loans receivable - - - - - - - -
Total assets $ 212,115 $ 7,157,629 $ 102,684 $ 1,787,489 $ 64,568 $ - $ 18,222 $ 734,658
Liabilities
Accounts payable $ 200,147 $ 63,423 $ - $ 34,314 $ - $ - $ - $ -
Accrued liabilities - - - 36,926 - - - -
Retainage payable - 29,614 - - - - - -
Total liabilities 200,147 93,037 - 71,240 - - - -
Deferred inflows of resources
Unavailable revenue-loans receivable - - - - - - - -
Unavailable revenue-other - - - - - - - -
Total deferred inflow of resources - - - - - - - -
Fund balances
Restricted 11,968 7,064,592 102,684 - 64,568 - 18,222 734,658
Committed - - - 1,716,249 - - - -
Total fund balances 11,968 7,064,592 102,684 1,716,249 64,568 - 18,222 734,658
Total liabilities, deferred inflows of recources, and fund
balances $ 212,115 $ 7,157,629 $ 102,684 $ 1,787,489 $ 64,568 $ - $ 18,222 $ 734,658
CITY OF COLLEGE STATION, TEXAS
Combining Balance Sheet - continued
Nonmajor Governmental Funds
September 30, 2018
Capital Projects
R.E. Meyer Estate
Restricted Gift
Roadway
Maintenance Fee
Fun For All
Playground
System-Wide
Water Impact Fee
System-Wide
Wastewater
Impact Fee
System-Wide
Roadway Impact
Fee
Parks and
Recreation
Projects
Total Other
Governmental
Funds
Assets
Cash and cash equivalents $ 130,899 $ 632,944 $ 850,607 $ 22,805 $ 1,229,945 $ 225,637 $ 5,598,180 $ 39,691,243
Equity in investments 22,630 109,425 147,055 3,942 212,635 39,008 967,825 6,861,902
Receivable (net of allow for uncollectible) - 468,996 - - - - - 896,336
Investments interest receivable 113 546 734 20 1,062 195 4,833 33,765
Inventories - - - - - - - 5,326,560
Prepaid Costs - - - - - - - 1,708
Loans receivable - - - - - - - 1,960,079
Total assets $ 153,642 $ 1,211,911 $ 998,396 $ 26,767 $ 1,443,642 $ 264,840 $ 6,570,838 $ 54,771,593
Liabilities
Accounts payable $ - $ 422,708 $ 36,719 $ - $ - $ - $ 299,919 $ 2,410,237
Accrued liabilities - - - - - - - 54,111
Retainage payable - - 1,933 - - - 39,594 161,576
Total liabilities - 422,708 38,652 - - - 339,513 2,625,924
Deferred inflows of resources
Unavailable revenue-loans receivable - - - - - - - 1,960,079
Unavailable revenue-other - - - - - - 365 49,669
Total deferred inflow of resources - - - - - - 365 2,009,748
Fund balances
Restricted 153,642 - 959,744 26,767 1,443,642 264,840 6,230,960 30,832,562
Committed - 789,203 - - - - - 19,303,359
Total fund balances 153,642 789,203 959,744 26,767 1,443,642 264,840 6,230,960 50,135,921
Total liabilities, deferred inflows of recources, and fund
balances $ 153,642 $ 1,211,911 $ 998,396 $ 26,767 $ 1,443,642 $ 264,840 $ 6,570,838 $ 54,771,593
Special Revenue
CITY OF COLLEGE STATION, TEXAS
Combining Balance Sheet - continued
Nonmajor Governmental Funds
September 30, 2018
Court Technology
Fee Court Security Fee
Juvenile Case
Manager Fee Police Seizure
Memorial
Cemetery
Memorial
Cemetery
Endowment
Texas Avenue
Cemetery
Endowment Hotel Tax
Community
Development
Revenues
Ad valorem taxes $ - $ - $ - $ - $ - $ - $ - $ - $ -
Sales taxes - - - - - - - - -
Other taxes - - - - - - - 5,737,743 -
Intergovernmental - - - 42,405 - - - - 1,267,361
Charges for services - - - - 352,579 176,004 9,605 - -
Fines, forfeits, and penalties 52,197 39,145 65,241 - - - - - -
Investment income 6,877 509 2,908 1,859 23,273 17,385 28,952 301,212 -
Contributions - - - - - - - - -
Other - - - - - - 210 10,436 26,537
Total revenues 59,074 39,654 68,149 44,264 375,852 193,389 38,767 6,049,391 1,293,898
Expenditures
Police - - - 20,888 - - - - -
Public works - - - - - - - - -
Parks and recreation - - - - 230,365 197,661 3,279 447,378 -
Planning and development services - - - - - - - - -
Fiscal services 42,217 37,029 121,033 - - - - - -
General government - - - - - - - 418 2,446,868
Contributions - - - - - - - 3,526,538 -
Capital outlay 19,217 - - - - 117,342 - 1,527,894 164,233
Debt issuance cost - - - - - - - - -
Total expenditures 61,434 37,029 121,033 20,888 230,365 315,003 3,279 5,502,228 2,611,101
Excess (deficit) of revenues over (under) expenditures (2,360) 2,625 (52,884) 23,376 145,487 (121,614) 35,488 547,163 (1,317,203)
Other financing sources (uses)
Issuance of bonds - - - - - - - - -
Premium on bonds issued - - - - - - - - -
Transfers out - - - - (264,453) - - (494,605) (7,784)
Total other financing source (uses) - - - - (264,453) - - (494,605) (7,784)
Net change in fund balances (2,360) 2,625 (52,884) 23,376 (118,966) (121,614) 35,488 52,558 (1,324,987)
Fund balances - beginning 467,993 29,449 218,894 104,707 5,308,419 3,017,717 1,910,835 18,990,640 2,012,292
Fund balances - ending $ 465,633 $ 32,074 $ 166,010 $ 128,083 $ 5,189,453 $ 2,896,103 $ 1,946,323 $ 19,043,198 $ 687,305
Special Revenue
CITY OF COLLEGE STATION, TEXAS
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
For the Fiscal Year Ended September 30, 2018
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
Revenues
Ad valorem taxes $ - $ - $ - $ - $ - $ 236,437 $ 12,448 $ -
Sales taxes - - - - - - - -
Other taxes - - - - - - - 197,576
Intergovernmental - - - - - - - -
Charges for services - - - 2,323,471 - - - -
Fines, forfeits, and penalties - - - - 11,554 - - -
Investment income 11,968 50,785 1,680 25,011 870 5,280 70 10,250
Contributions - 779,751 36,580 - - - - -
Other - - - - - - - -
Total revenues 11,968 830,536 38,260 2,348,482 12,424 241,717 12,518 207,826
Expenditures
Police - - - - - - - -
Public works - - - 1,292,884 - - - -
Parks and recreation - - - - - - - -
Planning and development services - - - 114,175 - - - -
Fiscal services - - - - 164 - - -
General government 1,277,906 - - 97,739 - - - 61,794
Contributions - - - - - - - -
Capital outlay - 1,226,986 32,124 472,742 - - - 19,984
Debt issuance cost - - - - - - - -
Total expenditures 1,277,906 1,226,986 32,124 1,977,540 164 - - 81,778
Excess (deficit) of revenues over (under) expenditures (1,265,938) (396,450) 6,136 370,942 12,260 241,717 12,518 126,048
Other financing sources (uses)
Issuance of bonds - - - - - - - -
Premiums on bonds issued - - - - - - - -
Transfers out - (41,229) - (527,575) - (914,724) - -
Total other financing source (uses) - (41,229) - (527,575) - (914,724) - -
Net change in fund balances (1,265,938) (437,679) 6,136 (156,633) 12,260 (673,007) 12,518 126,048
Fund balances - beginning 1,277,906 7,502,271 96,548 1,872,882 52,308 673,007 5,704 608,610
Fund balances - ending $ 11,968 $ 7,064,592 $ 102,684 $ 1,716,249 $ 64,568 $ - $ 18,222 $ 734,658
CITY OF COLLEGE STATION, TEXAS
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances-continued
Nonmajor Governmental Funds
For the Fiscal Year Ended September 30, 2018
Capital Projects
R.E. Meyer Estate
Restricted Gift
Roadway
Maintenance Fee
Fun For All
Playground
System-Wide
Water Impact Fee
System-Wide
Wastewater
Impact Fee
System-Wide
Roadway Impact
Fee
Parks and
Recreation
Projects
Total Other
Governmental
Funds
Revenues
Ad valorem taxes $ - $ - $ - $ - $ - $ - $ - $ 248,885
Sales taxes - - - - - - - -
Other taxes - - - - - - - 5,935,319
Intergovernmental - - - - - - - 1,309,766
Charges for services - 4,375,386 - - - - 123,900 7,360,945
Fines, forfeits, and penalties - - - - - - - 168,137
Investment income 6,591 23,508 (1,271) 1,519 12,216 1,737 62,776 595,965
Contributions - - 1,000,000 - - - - 1,816,331
Other - 222,683 - 339,325 1,606,025 263,103 - 2,468,319
Total revenues 6,591 4,621,577 998,729 340,844 1,618,241 264,840 186,676 19,903,667
Expenditures
Police - - - - - - - 20,888
Public works - 4,028,558 - - - - - 5,321,442
Parks and recreation - - - - - - 2,917 881,600
Planning and development services - - - - - - - 114,175
Fiscal services - - - - - - - 200,443
General government - - - - - - - 3,884,725
Contributions - - - - - - - 3,526,538
Capital outlay - - 38,985 - - - 2,459,319 6,078,826
Debt issuance cost - - - - - - 63,210 63,210
Total expenditures - 4,028,558 38,985 - - - 2,525,446 20,091,847
Excess (deficit) of revenues over (under) expenditures 6,591 593,019 959,744 340,844 1,618,241 264,840 (2,338,770) (188,180)
Other financing sources (uses)
Issuance of bonds - - - - - - 5,005,000 5,005,000
Premium on bonds issued - - - - - - 268,644 268,644
Transfers out (573,190) (134,457) - (359,152) (330,075) - (46,569) (3,693,813)
Total other financing source (uses) (573,190) (134,457) - (359,152) (330,075) - 5,227,075 1,579,831
Net change in fund balances (566,599) 458,562 959,744 (18,308) 1,288,166 264,840 2,888,305 1,391,651
Fund balances - beginning 720,241 330,641 - 45,075 155,476 - 3,342,655 48,744,270
Fund balances - ending $ 153,642 $ 789,203 $ 959,744 $ 26,767 $ 1,443,642 $ 264,840 $ 6,230,960 $ 50,135,921
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances-continued
Nonmajor Governmental Funds
For the Fiscal Year Ended September 30, 2018
Special Revenue
CITY OF COLLEGE STATION, TEXAS
Variance with
Actual GAAP Adjustments Actual Budget Final Budget
Original Budget Final Budget Basis Budget Basis Basis Over (Under)
Revenues
Fines, forfeits, and penalties $ 73,318 $ 73,318 $ 52,197 $ - $ 52,197 $ (21,121)
Investment income 3,622 3,622 6,877 593 7,470 3,848
Total revenues 76,940 76,940 59,074 593 59,667 (17,273)
Expenditures
Fiscal services 81,619 81,619 42,217 - 42,217 (39,402)
Capital outlay - 25,000 19,217 - 19,217 (5,783)
Total expenditures 81,619 106,619 61,434 - 61,434 (45,185)
Excess (deficit) of revenues over (under) expenditures (4,679) (29,679) (2,360) 593 (1,767) 27,912
Other financing sources (uses)
Total other financing sources (uses) - - - - - -
Net change in fund balances (4,679) (29,679) (2,360) 593 (1,767) 27,912
Fund balances - beginning 467,993 467,993 467,993 - 467,993 -
Fund balances - ending $ 463,314 $ 438,314 $ 465,633 $ 593 $ 466,226 $ 27,912
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, 2018
Variance with
Actual GAAP Adjustments Actual Budget Final Budget
Original Budget Final Budget Basis Budget Basis Basis Over (Under)
Revenues
Fines, forfeits, and penalties $ 64,366 $ 64,366 $ 39,145 $ - $ 39,145 $ (25,221)
Investment income 181 181 509 43 552 371
Total revenues 64,547 64,547 39,654 43 39,697 (24,850)
Expenditures
Fiscal services 40,711 40,711 37,029 - 37,029 (3,682)
Total expenditures 40,711 40,711 37,029 - 37,029 (3,682)
Excess (deficit) of revenues over (under) expenditures 23,836 23,836 2,625 43 2,668 (21,168)
Other financing sources (uses)
Total other financing sources (uses) - - - - - -
Net change in fund balances 23,836 23,836 2,625 43 2,668 (21,168)
Fund balances - beginning 29,449 29,449 29,449 - 29,449 -
Fund balances - ending $ 53,285 $ 53,285 $ 32,074 $ 43 $ 32,117 $ (21,168)
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, 2018
Variance with
Actual GAAP Adjustments Actual Budget Final Budget
Original Budget Final Budget Basis Budget Basis Basis Over (Under)
Revenues
Fines, forfeits, and penalties $ 105,890 $ 105,890 $ 65,241 $ - $ 65,241 $ (40,649)
Investment income 1,891 1,891 2,908 217 3,125 1,234
Total revenues 107,781 107,781 68,149 217 68,366 (39,415)
Expenditures
Fiscal services 125,218 125,218 121,033 - 121,033 (4,185)
Total expenditures 125,218 125,218 121,033 - 121,033 (4,185)
Excess (deficit) of revenues over (under) expenditures (17,437) (17,437) (52,884) 217 (52,667) (35,230)
Other financing sources (uses)
Total other financing sources (uses) - - - - - -
Net change in fund balances (17,437) (17,437) (52,884) 217 (52,667) (35,230)
Fund balances - beginning 218,894 218,894 218,894 - 218,894 -
Fund balances - ending $ 201,457 $ 201,457 $ 166,010 $ 217 $ 166,227 $ (35,230)
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, 2018
Variance with
Actual GAAP Adjustments Actual Budget Final Budget
Original Budget Final Budget Basis Budget Basis Basis Over (Under)
Revenues
Intergovernmental $ 25,000 $ 25,000 $ 42,405 $ - $ 42,405 $ 17,405
Investment income 686 686 1,859 167 2,026 1,340
Total revenues 25,686 25,686 44,264 167 44,431 18,745
Expenditures
Police 30,000 30,000 20,888 - 20,888 (9,112)
Total expenditures 30,000 30,000 20,888 - 20,888 (9,112)
Excess (deficit) of revenues over (under) expenditures (4,314) (4,314) 23,376 167 23,543 27,857
Other financing sources (uses)
Total other financing sources (uses) - - - - - -
Net change in fund balances (4,314) (4,314) 23,376 167 23,543 27,857
Fund balances - beginning 104,707 104,707 104,707 - 104,707 -
Fund balances - ending $ 100,393 $ 100,393 $ 128,083 $ 167 $ 128,250 $ 27,857
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, 2018
Variance with
Actual GAAP Adjustments Actual Budget Final Budget
Original Budget Final Budget Basis Budget Basis Basis Over (Under)
Revenues
Charges for services $ 266,352 $ 266,352 $ 352,579 $ - $ 352,579 $ 86,227
Investment income 11,000 11,000 23,273 2,064 25,337 14,337
Total revenues 277,352 277,352 375,852 2,064 377,916 100,564
Expenditures
Parks and recreation - - 230,365 (227,598) 2,767 2,767
Total expenditures - - 230,365 (227,598) 2,767 2,767
Excess (deficit) of revenues over (under) expenditures 277,352 277,352 145,487 229,662 375,149 97,797
Other financing sources (uses)
Transfers out (264,453) (264,453) (264,453) - (264,453) -
Total other financing sources (uses) (264,453) (264,453) (264,453) - (264,453) -
Net change in fund balances 12,899 12,899 (118,966) 229,662 110,696 97,797
Fund balances - beginning 5,308,419 5,308,419 5,308,419 - 5,308,419 -
Fund balances - ending $ 5,321,318 $ 5,321,318 $ 5,189,453 $ 229,662 $ 5,419,115 $ 97,797
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, 2018
Variance with
Actual GAAP Adjustments Actual Budget Final Budget
Original Budget Final Budget Basis Budget Basis Basis Over (Under)
Revenues
Charges for services $ 131,188 $ 131,188 $ 176,004 $ - $ 176,004 $ 44,816
Investment income 8,000 8,000 17,385 1,583 18,968 10,968
Total revenues 139,188 139,188 193,389 1,583 194,972 55,784
Expenditures
Parks and recreation 15,000 24,000 197,661 (112,101) 85,560 61,560
Capital outlay 40,000 193,717 117,342 - 117,342 (76,375)
Total expenditures 55,000 217,717 315,003 (112,101) 202,902 (14,815)
Excess (deficit) of revenues over (under) expenditures 84,188 (78,529) (121,614) 113,684 (7,930) 70,599
Other financing sources (uses)
Total other financing sources (uses) - - - - - -
Net change in fund balances 84,188 (78,529) (121,614) 113,684 (7,930) 70,599
Fund balances - beginning 3,017,717 3,017,717 3,017,717 - 3,017,717 -
Fund balances - ending $ 3,101,905 $ 2,939,188 $ 2,896,103 $ 113,684 $ 3,009,787 $ 70,599
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, 2018
Variance with
Actual GAAP Adjustments Actual Budget Final Budget
Original Budget Final Budget Basis Budget Basis Basis Over (Under)
Revenues
Charges for services $ 5,000 $ 5,000 $ 9,605 $ - $ 9,605 $ 4,605
Investment income 16,000 16,000 28,952 2,480 31,432 15,432
Other - - 210 - 210 210
Total revenues 21,000 21,000 38,767 2,480 41,247 20,247
Expenditures
Parks and recreation - - 3,279 (29) 3,250 3,250
Total expenditures - - 3,279 (29) 3,250 3,250
Excess (deficit) of revenues over (under) expenditures 21,000 21,000 35,488 2,509 37,997 16,997
Other financing sources (uses)
Total other financing sources (uses) - - - - - -
Net change in fund balances 21,000 21,000 35,488 2,509 37,997 16,997
Fund balances - beginning 1,910,835 1,910,835 1,910,835 - 1,910,835 -
Fund balances - ending $ 1,931,835 $ 1,931,835 $ 1,946,323 $ 2,509 $ 1,948,832 $ 16,997
CITY OF COLLEGE STATION, TEXAS
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Texas Avenue Cemetery Endowment Fund
For the Fiscal Year Ended September 30, 2018
Variance with
Actual GAAP Adjustments Actual Budget Final Budget
Original Budget Final Budget Basis Budget Basis Basis Over (Under)
Revenues
Other taxes $ 5,125,000 $ 5,125,000 $ 5,737,743 $ - $ 5,737,743 $ 612,743
Investment income 140,000 140,000 301,212 25,829 327,041 187,041
Other 10,000 10,000 10,436 - 10,436 436
Total revenues 5,275,000 5,275,000 6,049,391 25,829 6,075,220 800,220
Expenditures
Parks and recreation 336,850 336,850 447,378 - 447,378 110,528
General government 285,000 85,000 418 - 418 (84,582)
Contributions 3,792,235 3,986,658 3,526,538 - 3,526,538 (460,120)
Capital outlay 2,574,479 4,318,360 1,527,894 - 1,527,894 (2,790,466)
Total expenditures 6,988,564 8,726,868 5,502,228 - 5,502,228 (3,224,640)
Excess (deficit) of revenues over (under) expenditures (1,713,564) (3,451,868) 547,163 25,829 572,992 4,024,860
Other financing sources (uses)
Transfers out (721,336) (721,336) (494,605) 14,244 (480,361) 240,975
Total other financing sources (uses) (721,336) (721,336) (494,605) 14,244 (480,361) 240,975
Net change in fund balances (2,434,900) (4,173,204) 52,558 40,073 92,631 4,265,835
Fund balances - beginning 18,990,640 18,990,640 18,990,640 - 18,990,640 -
Fund balances - ending $ 16,555,740 $ 14,817,436 $ 19,043,198 $ 40,073 $ 19,083,271 $ 4,265,835
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, 2018
Variance with
Actual GAAP Adjustments Actual Budget Final Budget
Original Budget Final Budget Basis Budget Basis Basis Over (Under)
Revenues
Intergovernmental $ 2,632,620 $ 2,632,620 $ 1,267,361 $ 61,475 $ 1,328,836 $ (1,303,784)
Other - - 26,537 295 26,832 26,832
Total revenues 2,632,620 2,632,620 1,293,898 61,770 1,355,668 (1,276,952)
Expenditures
General government 1,825,862 1,825,862 2,446,868 (1,316,986) 1,129,882 (695,980)
Capital outlay 806,758 806,758 164,233 - 164,233 (642,525)
Total expenditures 2,632,620 2,632,620 2,611,101 (1,316,986) 1,294,115 (1,338,505)
Excess (deficit) of revenues over (under) expenditures - - (1,317,203) 1,378,756 61,553 61,553
Other financing sources (uses)
Transfers out - - (7,784) - (7,784) (7,784)
Total other financing sources (uses) - - (7,784) - (7,784) (7,784)
Net change in fund balances - - (1,324,987) 1,378,756 53,769 53,769
Fund balances - beginning 2,012,292 2,012,292 2,012,292 - 2,012,292 -
Fund balances - ending $ 2,012,292 $ 2,012,292 $ 687,305 $ 1,378,756 $ 2,066,061 $ 53,769
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, 2018
Variance with
Actual GAAP Adjustments Actual Budget Final Budget
Original Budget Final Budget Basis Budget Basis Basis Over (Under)
Revenues
Investment income $ 9,500 $ 9,500 $ 11,968 $ 270 $ 12,238 $ 2,738
Total revenues 9,500 9,500 11,968 270 12,238 2,738
Expenditures
General government - 1,077,759 1,277,906 - 1,277,906 200,147
Total expenditures - 1,077,759 1,277,906 - 1,277,906 200,147
Excess (deficit) of revenues over (under) expenditures 9,500 (1,068,259) (1,265,938) 270 (1,265,668) (197,409)
Other financing sources (uses)
Total other financing sources (uses) - - - - - -
Net change in fund balances 9,500 (1,068,259) (1,265,938) 270 (1,265,668) (197,409)
Fund balances - beginning 1,277,906 1,277,906 1,277,906 - 1,277,906 -
Fund balances - ending $ 1,287,406 $ 209,647 $ 11,968 $ 270 $ 12,238 $ (197,409)
CITY OF COLLEGE STATION, TEXAS
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Wolf Pen Creek Tax Increment Financing District Fund
For the Fiscal Year Ended September 30, 2018
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 $ 50,785 $ 9,115 $ 59,900 $ 49,900
Contributions 400,000 400,000 779,751 - 779,751 379,751
Total revenues 410,000 410,000 830,536 9,115 839,651 429,651
Expenditures
Capital outlay 5,493,225 6,037,725 1,226,986 - 1,226,986 (4,810,739)
Total expenditures 5,493,225 6,037,725 1,226,986 - 1,226,986 (4,810,739)
Excess (deficit) of revenues over (under) expenditures (5,083,225) (5,627,725) (396,450) 9,115 (387,335) 5,240,390
Other financing sources (uses)
Transfers out (34,489) (34,489) (41,229) 6,740 (34,489) -
Total other financing sources (uses) (34,489) (34,489) (41,229) 6,740 (34,489) -
Net change in fund balances (5,117,714) (5,662,214) (437,679) 15,855 (421,824) 5,240,390
Fund balances - beginning 7,502,271 7,502,271 7,502,271 - 7,502,271 -
Fund balances - ending $ 2,384,557 $ 1,840,057 $ 7,064,592 $ 15,855 $ 7,080,447 $ 5,240,390
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, 2018
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 $ 1,680 $ 131 $ 1,811 $ 811
Contributions - - 36,580 - 36,580 36,580
Total revenues 1,000 1,000 38,260 131 38,391 37,391
Expenditures
Capital outlay 92,300 92,300 32,124 - 32,124 (60,176)
Total expenditures 92,300 92,300 32,124 - 32,124 (60,176)
Excess (deficit) of revenues over (under) expenditures (91,300) (91,300) 6,136 131 6,267 97,567
Other financing sources (uses)
Total other financing sources (uses) - - - - - -
Net change in fund balances (91,300) (91,300) 6,136 131 6,267 97,567
Fund balances - beginning 96,548 96,548 96,548 - 96,548 -
Fund balances - ending $ 5,248 $ 5,248 $ 102,684 $ 131 $ 102,815 $ 97,567
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, 2018
Variance with
Actual GAAP Adjustments Actual Budget Final Budget
Original Budget Final Budget Basis Budget Basis Basis Over (Under)
Revenues
Charges for services $ 2,295,700 $ 2,295,700 $ 2,323,471 $ - $ 2,323,471 $ 27,771
Investment income 15,000 15,000 25,011 1,940 26,951 11,951
Total revenues 2,310,700 2,310,700 2,348,482 1,940 2,350,422 39,722
Expenditures
Public works 1,412,597 1,412,597 1,292,884 - 1,292,884 (119,713)
Planning and development services 129,336 129,336 114,175 - 114,175 (15,161)
General government 87,284 87,284 97,739 (10,455) 87,284 -
Capital outlay 200,000 200,000 472,742 - 472,742 272,742
Total expenditures 1,829,217 1,829,217 1,977,540 (10,455) 1,967,085 137,868
Excess (deficit) of revenues over (under) expenditures 481,483 481,483 370,942 12,395 383,337 (98,146)
Other financing sources (uses)
Transfers out (517,470) (517,470) (527,575) 10,105 (517,470) -
Total other financing sources (uses) (517,470) (517,470) (527,575) 10,105 (517,470) -
Net change in fund balances (35,987) (35,987) (156,633) 22,500 (134,133) (98,146)
Fund balances - beginning 1,872,882 1,872,882 1,872,882 - 1,872,882 -
Fund balances - ending $ 1,836,895 $ 1,836,895 $ 1,716,249 $ 22,500 $ 1,738,749 $ (98,146)
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, 2018
Variance with
Actual GAAP Adjustments Actual Budget Final Budget
Original Budget Final Budget Basis Budget Basis Basis Over (Under)
Revenues
Fines, forfeits, and penalties $ 17,552 $ 17,552 $ 11,554 $ - $ 11,554 $ (5,998)
Investment income 445 445 870 82 952 507
Total revenues 17,997 17,997 12,424 82 12,506 (5,491)
Expenditures
Fiscal services 6,000 6,000 164 - 164 (5,836)
Total expenditures 6,000 6,000 164 - 164 (5,836)
Excess (deficit) of revenues over (under) expenditures 11,997 11,997 12,260 82 12,342 345
Other financing sources (uses)
Total other financing sources (uses) - - - - - -
Net change in fund balances 11,997 11,997 12,260 82 12,342 345
Fund balances - beginning 52,308 52,308 52,308 - 52,308 -
Fund balances - ending $ 64,305 $ 64,305 $ 64,568 $ 82 $ 64,650 $ 345
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, 2018
Variance with
Actual GAAP Adjustments Actual Budget Final Budget
Original Budget Final Budget Basis Budget Basis Basis Over (Under)
Revenues
Ad valorem taxes $ 261,877 $ 261,877 $ 236,437 $ - $ 236,437 $ (25,440)
Investment income 3,336 3,336 5,280 1,165 6,445 3,109
Total revenues 265,213 265,213 241,717 1,165 242,882 (22,331)
Expenditures
Total expenditures - - - - - -
Excess (deficit) of revenues over (under) expenditures 265,213 265,213 241,717 1,165 242,882 (22,331)
Other financing sources (uses)
Transfers out - (916,000) (914,724) - (914,724) 1,276
Total other financing sources (uses) - (916,000) (914,724) - (914,724) 1,276
Net change in fund balances 265,213 (650,787) (673,007) 1,165 (671,842) (21,055)
Fund balances - beginning 673,007 673,007 673,007 - 673,007 -
Fund balances - ending $ 938,220 $ 22,220 $ - $ 1,165 $ 1,165 $ (21,055)
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, 2018
Variance with
Actual GAAP Adjustments Actual Budget Final Budget
Original Budget Final Budget Basis Budget Basis Basis Over (Under)
Revenues
Ad valorem taxes $ 12,448 $ 12,448 $ 12,448 $ - $ 12,448 $ -
Investment income 21 21 70 24 94 73
Total revenues 12,469 12,469 12,518 24 12,542 73
Expenditures
Total expenditures - - - - - -
Excess (deficit) of revenues over (under) expenditures 12,469 12,469 12,518 24 12,542 73
Other financing sources (uses)
Total other financing sources (uses) - - - - - -
Net change in fund balances 12,469 12,469 12,518 24 12,542 73
Fund balances - beginning 5,704 5,704 5,704 - 5,704 -
Fund balances - ending $ 18,173 $ 18,173 $ 18,222 $ 24 $ 18,246 $ 73
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, 2018
Variance with
Actual GAAP Adjustments Actual Budget Final Budget
Original Budget Final Budget Basis Budget Basis Basis Over (Under)
Revenues
Other taxes $ 204,020 $ 204,020 $ 197,576 $ - $ 197,576 $ (6,444)
Investment income 4,322 4,322 10,250 935 11,185 6,863
Total revenues 208,342 208,342 207,826 935 208,761 419
Expenditures
General government 65,640 65,640 61,794 - 61,794 (3,846)
Capital outlay 61,500 61,500 19,984 - 19,984 (41,516)
Total expenditures 127,140 127,140 81,778 - 81,778 (45,362)
Excess (deficit) of revenues over (under) expenditures 81,202 81,202 126,048 935 126,983 45,781
Other financing sources (uses)
Total other financing sources (uses) - - - - - -
Net change in fund balances 81,202 81,202 126,048 935 126,983 45,781
Fund balances - beginning 608,610 608,610 608,610 - 608,610 -
Fund balances - ending $ 689,812 $ 689,812 $ 734,658 $ 935 $ 735,593 $ 45,781
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, 2018
Variance with
Actual GAAP Adjustments Actual Budget Final Budget
Original Budget Final Budget Basis Budget Basis Basis Over (Under)
Revenues
Investment income $ 500 $ 500 $ 6,591 $ 196 $ 6,787 $ 6,287
Total revenues 500 500 6,591 196 6,787 6,287
Expenditures
Total expenditures - - - - - -
Excess (deficit) of revenues over (under) expenditures 500 500 6,591 196 6,787 6,287
Other financing sources (uses)
Transfers out (573,190) (573,190) (573,190) - (573,190) -
Total other financing sources (uses) (573,190) (573,190) (573,190) - (573,190) -
Net change in fund balances (572,690) (572,690) (566,599) 196 (566,403) 6,287
Fund balances - beginning 720,241 720,241 720,241 - 720,241 -
Fund balances - ending $ 147,551 $ 147,551 $ 153,642 $ 196 $ 153,838 $ 6,287
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, 2018
Variance with
Actual GAAP Adjustments Actual Budget Final Budget
Original Budget Final Budget Basis Budget Basis Basis Over (Under)
Revenues
Charges for services $ 4,216,000 $ 4,216,000 $ 4,375,386 $ - $ 4,375,386 $ 159,386
Investment income 1,000 1,000 23,508 946 24,454 23,454
Other - - 222,683 - 222,683 222,683
Total revenues 4,217,000 4,217,000 4,621,577 946 4,622,523 405,523
Expenditures
Public works 4,083,128 4,083,128 4,028,558 (16,099) 4,012,459 (70,669)
Total expenditures 4,083,128 4,083,128 4,028,558 (16,099) 4,012,459 (70,669)
Excess (deficit) of revenues over (under) expenditures 133,872 133,872 593,019 17,045 610,064 476,192
Other financing sources (uses)
Transfers out (134,457) (134,457) (134,457) - (134,457) -
Total other financing sources (uses) (134,457) (134,457) (134,457) - (134,457) -
Net change in fund balances (585) (585) 458,562 17,045 475,607 476,192
Fund balances - beginning 330,641 330,641 330,641 - 330,641 -
Fund balances - ending $ 330,056 $ 330,056 $ 789,203 $ 17,045 $ 806,248 $ 476,192
CITY OF COLLEGE STATION, TEXAS
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Roadway Maintenance Fee Fund
For the Fiscal Year Ended September 30, 2018
Variance with
Actual GAAP Adjustments Actual Budget Final Budget
Original Budget Final Budget Basis Budget Basis Basis Over (Under)
Revenues
Investment income $ - $ - $ (1,271) $ 1,271 $ - $ -
Contributions - 1,000,000 1,000,000 - 1,000,000 -
Total revenues - 1,000,000 998,729 1,271 1,000,000 -
Expenditures
Capital outlay - 1,000,000 38,985 - 38,985 (961,015)
Total expenditures - 1,000,000 38,985 - 38,985 (961,015)
Excess (deficit) of revenues over (under) expenditures - - 959,744 1,271 961,015 961,015
Other financing sources (uses)
Total other financing sources (uses) - - - - - -
Net change in fund balances - - 959,744 1,271 961,015 961,015
Fund balances - beginning - - - - - -
Fund balances - ending $ - $ - $ 959,744 $ 1,271 $ 961,015 $ 961,015
CITY OF COLLEGE STATION, TEXAS
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Fun For All Playground Fund
For the Fiscal Year Ended September 30, 2018
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 $ 1,519 $ 34 $ 1,553 $ 553
Other 377,417 377,417 339,325 - 339,325 (38,092)
Total revenues 378,417 378,417 340,844 34 340,878 (37,539)
Expenditures
Total expenditures - - - - - -
Excess (deficit) of revenues over (under) expenditures 378,417 378,417 340,844 34 340,878 (37,539)
Other financing sources (uses)
Transfers out (359,152) (359,152) (359,152) - (359,152) -
Total other financing sources (uses) (359,152) (359,152) (359,152) - (359,152) -
Net change in fund balances 19,265 19,265 (18,308) 34 (18,274) (37,539)
Fund balances - beginning 45,075 45,075 45,075 - 45,075 -
Fund balances - ending $ 64,340 $ 64,340 $ 26,767 $ 34 $ 26,801 $ (37,539)
CITY OF COLLEGE STATION, TEXAS
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
System-Wide Water Impact Fee Fund
For the Fiscal Year Ended September 30, 2018
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 $ 12,216 $ 1,838 $ 14,054 $ 4,054
Other 2,264,500 2,264,500 1,606,025 - 1,606,025 (658,475)
Total revenues 2,274,500 2,274,500 1,618,241 1,838 1,620,079 (654,421)
Expenditures
Total expenditures - - - - - -
Excess (deficit) of revenues over (under) expenditures 2,274,500 2,274,500 1,618,241 1,838 1,620,079 (654,421)
Other financing sources (uses)
Transfers out (330,075) (330,075) (330,075) - (330,075) -
Total other financing sources (uses) (330,075) (330,075) (330,075) - (330,075) -
Net change in fund balances 1,944,425 1,944,425 1,288,166 1,838 1,290,004 (654,421)
Fund balances - beginning 155,476 155,476 155,476 - 155,476 -
Fund balances - ending $ 2,099,901 $ 2,099,901 $ 1,443,642 $ 1,838 $ 1,445,480 $ (654,421)
CITY OF COLLEGE STATION, TEXAS
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
System-Wide Wastewater Impact Fee Fund
For the Fiscal Year Ended September 30, 2018
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 $ 1,737 $ 337 $ 2,074 $ 1,074
Other 416,667 416,667 263,103 - 263,103 (153,564)
Total revenues 417,667 417,667 264,840 337 265,177 (152,490)
Expenditures - - - - - -
Total expenditures - - - - - -
Excess (deficit) of revenues over (under) expenditures 417,667 417,667 264,840 337 265,177 (152,490)
Other financing sources (uses)
Total other financing sources (uses) - - - - - -
Net change in fund balances 417,667 417,667 264,840 337 265,177 (152,490)
Fund balances - beginning - - - - - -
Fund balances - ending $ 417,667 $ 417,667 $ 264,840 $ 337 $ 265,177 $ (152,490)
CITY OF COLLEGE STATION, TEXAS
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
System-Wide Roadway Impact Fee Fund
For the Fiscal Year Ended September 30, 2018
Variance with
Actual GAAP Adjustments Actual Budget Final Budget
Original Budget Final Budget Basis Budget Basis Basis Over (Under)
Revenues
Ad valorem taxes $ 18,985,125 $ 18,985,125 $ 19,089,647 $ - $ 19,089,647 $ 104,522
Investment income 50,000 50,000 126,466 6,714 133,180 83,180
Total revenues 19,035,125 19,035,125 19,216,113 6,714 19,222,827 187,702
Expenditures
Principal retirement 14,694,893 14,694,893 12,435,000 - 12,435,000 (2,259,893)
Interest on long-term debt 4,765,708 4,765,708 7,024,474 - 7,024,474 2,258,766
Debt issuance costs 150,000 150,000 9,719 - 9,719 (140,281)
Total expenditures 19,610,601 19,610,601 19,469,193 - 19,469,193 (141,408)
Excess (deficit) of revenues over (under) expenditures (575,476) (575,476) (253,080) 6,714 (246,366) 329,110
Other financing sources (uses)
Transfers in 464,453 464,453 464,453 - 464,453 -
Total other financing sources (uses) 464,453 464,453 464,453 - 464,453 -
Net change in fund balances (111,023) (111,023) 211,373 6,714 218,087 329,110
Fund balances - beginning 5,061,437 5,061,437 5,061,437 - 5,061,437 -
Fund balances - ending $ 4,950,414 $ 4,950,414 $ 5,272,810 $ 6,714 $ 5,279,524 $ 329,110
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, 2018
Variance with
Actual GAAP Adjustments Actual Budget Final Budget
Original Budget Final Budget Basis Budget Basis Basis Over (Under)
Revenues
Charges for services $ 96,000 $ 96,000 $ 123,900 $ - $ 123,900 $ 27,900
Investment income 25,000 25,000 62,776 8,368 71,144 46,144
Other 23,675 23,675 - - - (23,675)
Total revenues 144,675 144,675 186,676 8,368 195,044 50,369
Expenditures
Parks and recreation - - 2,917 - 2,917 2,917
Capital outlay 3,726,500 4,126,500 2,459,319 - 2,459,319 (1,667,181)
Debt issuance costs 23,675 23,675 63,210 - 63,210 39,535
Total expenditures 3,750,175 4,150,175 2,525,446 - 2,525,446 (1,624,729)
Excess (deficit) of revenues over (under) expenditures (3,605,500) (4,005,500) (2,338,770) 8,368 (2,330,402) 1,675,098
Other financing sources (uses)
Issuance of bonds 4,735,000 5,135,000 5,005,000 - 5,005,000 (130,000)
Premiums on bonds issued - - 268,644 - 268,644 268,644
Transfers out (34,490) (34,490) (46,569) 12,079 (34,490) -
Total other financing sources (uses) 4,700,510 5,100,510 5,227,075 12,079 5,239,154 138,644
Net change in fund balances 1,095,010 1,095,010 2,888,305 20,447 2,908,752 1,813,742
Fund balances - beginning 3,342,655 3,342,655 3,342,655 - 3,342,655 -
Fund balances - ending $ 4,437,665 $ 4,437,665 $ 6,230,960 $ 20,447 $ 6,251,407 $ 1,813,742
*Capital Investment Projects Budgets are Life to Date.
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, 2018
Variance with
Actual GAAP Adjustments Actual Budget Final Budget
Original Budget Final Budget Basis Budget Basis Basis Over (Under)
Revenues
Investment income $ 235,000 $ 235,000 $ 604,689 $ 52,171 $ 656,860 $ 421,860
Other 10,000 10,000 - - - (10,000)
Total revenues 245,000 245,000 604,689 52,171 656,860 411,860
Expenditures
General government - - 20,531 - 20,531 20,531
Capital outlay 3,763,190 4,463,190 4,464,298 - 4,464,298 1,108
Debt issuance costs 15,625 15,625 37,177 - 37,177 21,552
Total expenditures 3,778,815 4,478,815 4,522,006 - 4,522,006 43,191
Excess (deficit) of revenues over (under) expenditures (3,533,815) (4,233,815) (3,917,317) 52,171 (3,865,146) 368,669
Other financing sources (uses)
Issuance of bonds 3,125,000 3,825,000 2,950,000 - 2,950,000 (875,000)
Premiums on bonds issued - - 141,532 - 141,532 141,532
Transfers in 678,190 1,594,190 1,592,914 - 1,592,914 (1,276)
Transfers out (113,667) (113,667) (193,371) 79,704 (113,667) -
Total other financing sources (uses) 3,689,523 5,305,523 4,491,075 79,704 4,570,779 (734,744)
Net change in fund balances 155,708 1,071,708 573,758 131,875 705,633 (366,075)
Fund balances - beginning 39,662,661 39,662,661 39,662,661 - 39,662,661 -
Fund balances - ending $ 39,818,369 $ 40,734,369 $ 40,236,419 $ 131,875 $ 40,368,294 $ (366,075)
*Capital Investment Projects Budgets are Life to Date.
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, 2018
Variance with
Actual GAAP Adjustments Actual Budget Final Budget
Original Budget Final Budget Basis Budget Basis Basis Over (Under)
Revenues
Intergovernmental $ - $ - $ 464,767 $ - $ 464,767 $ 464,767
Investment income 400,000 400,000 699,318 55,553 754,871 354,871
Other 176,888 329,688 152,800 - 152,800 (176,888)
Total revenues 576,888 729,688 1,316,885 55,553 1,372,438 642,750
Expenditures
Public works - - 694 - 694 694
Capital outlay 15,497,500 15,650,300 21,617,209 - 21,617,209 5,966,909
Debt issuance costs 76,888 76,888 129,434 - 129,434 52,546
Total expenditures 15,574,388 15,727,188 21,747,337 - 21,747,337 6,020,149
Excess (deficit) of revenues over (under) expenditures (14,997,500) (14,997,500) (20,430,452) 55,553 (20,374,899) (5,377,399)
Other financing sources (uses)
Issuance of bonds 15,377,500 15,377,500 10,275,000 - 10,275,000 (5,102,500)
Premium on bonds issued - - 481,018 - 481,018 481,018
Transfers out (454,007) (454,007) (707,618) 253,611 (454,007) -
Total other financing sources (uses) 14,923,493 14,923,493 10,048,400 253,611 10,302,011 (4,621,482)
Net change in fund balances (74,007) (74,007) (10,382,052) 309,164 (10,072,888) (9,998,881)
Fund balances - beginning 49,575,327 49,575,327 49,575,327 - 49,575,327 -
Fund balances - ending $ 49,501,320 $ 49,501,320 $ 39,193,275 $ 309,164 $ 39,502,439 $ (9,998,881)
*Capital Investment Projects Budgets are Life to Date.
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, 2018
COMBINING FINANCIAL STATEMENTS
NONMAJOR ENTERPRISE FUNDS
Solid Waste Fund - account for all solid waste 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.
Solid Waste
Northgate Parking
Garage
Total Nonmajor
Enterprise Funds
Assets
Current assets
Cash and cash equivalents $ 1,085,561 $ 1,039,260 $ 2,124,821
Equity in investments 187,674 179,066 366,740
Receivable (net of allow for uncollectible) 1,183,272 76,000 1,259,272
Loan receivable 230,000 - 230,000
Investments interest receivable 937 894 1,831
Inventories 29,327 - 29,327
Prepaid costs 1,708 - 1,708
Total current assets 2,718,479 1,295,220 4,013,699
Noncurrent assets
Equity in joint venture 17,261,241 - 17,261,241
Loan receivable 2,725,000 - 2,725,000
Capital assets
Buildings - 6,349,242 6,349,242
Machinery and equipment 6,406,630 716,114 7,122,744
Less accummulated depreciation (3,877,019) (3,018,216) (6,895,235)
Construction in progress - 466 466
Land - 690,750 690,750
Total capital assets 2,529,611 4,738,356 7,267,967
Total noncurrent assets 22,515,852 4,738,356 27,254,208
Total assets 25,234,331 6,033,576 31,267,907
Deferred outflows of resources
Deferred charge on refunding 317,589 11,177 328,766
Pension 272,290 33,538 305,828
OPEB 51,701 8,383 60,084
Total deferred outflows of resources 641,580 53,098 694,678
Liabilities
Current liabilities
Accounts payable 275,298 69,654 344,952
Accrued liabilities 145,824 27,249 173,073
Unearned Revenue - 132,534 132,534
Compensated absences 8,168 1,125 9,293
Accrued interest payable 15,909 2,019 17,928
Certificates of obligation 230,000 - 230,000
General obligation bonds 31,234 213,174 244,408
Total current liabilities 706,433 445,755 1,152,188
Noncurrent liabilities
Certificates of obligation 490,000 - 490,000
General obligation bonds 2,539,530 220,000 2,759,530
Compensated absences 99,110 13,652 112,762
Post employment benefits 245,846 39,867 285,713
Net pension liabillity 895,057 98,561 993,618
Total noncurrent liabilities 4,269,543 372,080 4,641,623
Total liabilities 4,975,976 817,835 5,793,811
Deferred inflows of resources
Pension 178,761 33,723 212,484
OPEB 120,627 19,561 140,188
Total deferred inflows of resources 299,388 53,284 352,672
Net position
Net investment in capital assets 2,529,611 4,294,005 6,823,616
Restricted for
BVSWMA Investment 17,261,241 - 17,261,241
Unrestricted 809,695 921,550 1,731,245
Total net position $ 20,600,547 $ 5,215,555 $ 25,816,102
CITY OF COLLEGE STATION, TEXAS
Combining Statement of Net Position
Nonmajor Enterprise Funds
September 30, 2018
Solid Waste
Northgate Parking
Garage
Total Nonmajor
Enterprise Funds
Operating revenues
Charges for services $ 9,548,331 $ 1,067,806 $ 10,616,137
Fines, forfeits, and penalties - 300,551 300,551
Other 52,916 95 53,011
Total operating revenues 9,601,247 1,368,452 10,969,699
Operating expenses
Salaries and benefits 2,181,304 360,657 2,541,961
Supplies 435,136 17,508 452,644
Maintenance 690,732 70,159 760,891
Purchased professional services 922,959 174,485 1,097,444
Purchased property services 1,363,579 43,063 1,406,642
Other purchased services 1,825,980 90,183 1,916,163
Depreciation 967,300 209,124 1,176,424
Other 78,525 - 78,525
Total operating expenses 8,465,515 965,179 9,430,694
Operating income 1,135,732 403,273 1,539,005
Nonoperating revenues (expenses)
Investment income 161,977 19,607 181,584
Earnings in joint venture 1,542,900 - 1,542,900
Interest payments (173,885) (30,018) (203,903)
Other, net (159,959) (63,098) (223,057)
Total nonoperating revenues (expenses) 1,371,033 (73,509) 1,297,524
Income before contributions and transfers 2,506,765 329,764 2,836,529
Capital contributions and transfers
Capital contributions 548,830 - 548,830
Transfers out (1,406,477) (272,017) (1,678,494)
Total capital contributions and transfers (857,647) (272,017) (1,129,664)
Change in net position 1,649,118 57,747 1,706,865
Net position - beginning 19,172,089 5,252,340 24,424,429
Prior period adjustment (220,660) (94,532) (315,192)
Net position - ending $ 20,600,547 $ 5,215,555 $ 25,816,102
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, 2018
Total
Northgate Nonmajor
Parking Enterprise
Solid Waste Garage Funds
Cash flows from operating activities:
Cash received from customers 9,481,567 1,320,346$ 10,801,913$
Cash payments to suppliers for goods and services (5,076,525) (351,799) (5,428,324)
Cash payments to employees for services (2,772,614) (377,613) (3,150,227)
Cash paid for miscellaneous services (78,525) - (78,525)
Net cash provided (used) by operating activities 1,553,903 590,934 2,144,837
Cash flows from noncapital financing activities:
Cash (paid) for received from miscellaneous non operating services (159,957) (63,098) (223,055)
Transfers in from other funds - - -
Transfers out to other funds (1,406,477) (272,017) (1,678,494)
Net cash provided (used) by noncapital financing activities (1,566,434) (335,115) (1,901,549)
Cash flows from capital and related financing activities:
Acquisition and construction of capital assets (548,831) (138,598) (687,429)
Capital grants and contributions 548,830 - 548,830
BVSWMA loan payments received 445,000 445,000
Principal paid on certificates of obligation and general obligation bonds (220,000) (205,000) (425,000)
Interest paid on certificates of obligation and general obligation bonds (173,885) (30,018) (203,903)
Net cash provided (used) by capital and related financing activities 51,114 (373,616) (322,502)
Cash flows from investing activities:
Purchase of investments (83,394) (49,653) (133,047)
Proceeds from sale and maturities of investment securities 10,718 11,325 22,043
Investment income 161,360 19,104 180,464
Net cash provided (used) by investing activities 88,684 (19,224) 69,460
Net increase (decrease) in cash and cash equivalents 127,267 (137,021) (9,754)
Cash and cash equivalents, Oct. 1 958,294 1,176,281 2,134,575
Cash and cash equivalents, Sept. 30 1,085,561 1,039,260$ 2,124,821$
Reconciliation of operating income to net cash
Provided by operating activities:
Operating income 1,135,732 403,273$ 1,539,005$
Adjustment to reconcile operating income to net
cash provided (used) by operating activities:
Depreciation 967,300 209,124 1,176,424
Amortization of Bond Premium (Discount)(31,234) (3,174) (34,408)
Bad debt expense 38,637 - 38,637
Inventory loss 8,262 - 8,262
(Increases) decreases in assets and deferred outflows:-
Change in accounts receivable (147,308) (68,875) (216,183)
Change in inventory (19,913) - (19,913)
Change in prepaids (1,708) - (1,708)
Change in deferred outflow on pensions 92,905 13,824 106,729
Change in deferred outflow on OPEB (51,701) (8,383) (60,084)
Change in deferred charge on refunding (190,770) 11,178 (179,592)
Increases (decreases) in liabilities and deferred inflows:-
Change in accounts payable 65,060 54,586 119,646
Change in unearned revenues - 20,769 20,769
Change in accrued liabilities 15,127 5,165 20,292
Change in accrued vacation (10,951) 4,088 (6,863)
Change in accrued interest payable (4,127) (897) (5,024)
Change in OPEB (375,440) (60,883) (436,323)
Change in net pension liability (427,393) (63,601) (490,994)
Change in deferred inflow on pensions 370,798 55,179 425,977
Change in deferred inflow on OPEB 120,627 19,561 140,188
Total adjustments 418,171 187,661 605,832
Net cash provided (used) by operating activities 1,553,903 590,934$ 2,144,837$
Reconciliation of total cash and cash equivalents:
Current assets - cash and cash equivalents 1,085,561 1,039,260$ 2,124,821$
Restricted assets - cash and cash equivalents - - -$
Total cash and cash equivalents 1,085,561 1,039,260$ 2,124,821$
The notes to the financial statements are an integral part of this statement.
CITY OF COLLEGE STATION, TEXAS
Combining Statement of Cash Flows
Nonmajor Enterprise Funds
For the Fiscal Year Ended September 30, 2018
COMBINING FINANCIAL STATEMENTS
INTERNAL SERVICE FUNDS
Employee Benefits Fund – to account for self-insurance activity related to administration of the City's health
benefits plan.
Equipment Replacement Fund – to account for the purchase of City equipment such as vehicles and large
motorized equipment, telephone and radio systems, and replacement assets for existing technological
infrastructure equipment not budgeted in other funds.
Fleet Maintenance Fund – to account for all activities related to the management of the City’s vehicles and heavy
equipment, including preventive maintenance and vehicle repair activities.
Property and Casualty Fund – to account for insurance activity relating to all claims filed for liability cases (both
injury and property) and property losses incurred for City property.
Unemployment Fund – to account for self-insurance activity on claims filed under unemployment compensation
laws.
Utility Customer Service Fund – to account for the billing and collection activities relating to the City’s electric,
water, and sewer utilities and residential and commercial garbage collection.
Workers' Compensation Fund – to account for self-insurance activity relating to administration of the City's
workers' compensation plan.
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 $ 7,509,532 $ 12,132,654 $ 226,847 $ 1,765,898 $ 318,878 $ 188,733 $ 2,463,326 $ 24,605,868
Equity in investments 1,298,263 2,097,518 39,217 305,292 55,128 32,162 425,865 4,253,445
Receivable (net of allow for uncollectible) - - - 270,278 - 58,302 - 328,580
Investments interest receivable 6,483 10,473 196 1,524 275 153 2,126 21,230
Inventories - - 118,147 - - - - 118,147
Prepaids - - - - - - 2,500 2,500
Total current assets 8,814,278 14,240,645 384,407 2,342,992 374,281 279,350 2,893,817 29,329,770
Noncurrent assets
Buildings - - 786,525 - - - - 786,525
Machinery and equipment - 24,866,372 402,866 - - 759,250 - 26,028,488
Less accummulated depreciation - (14,544,070) (833,270) - - (637,993) - (16,015,333)
Total noncurrent assets - 10,322,302 356,121 - - 121,257 - 10,799,680
Total assets 8,814,278 24,562,947 740,528 2,342,992 374,281 400,607 2,893,817 40,129,450
Deferred outflows of resources
Pension 7,348 - 118,304 13,891 - 153,927 13,891 307,361
OPEB 1,398 22,358 2,096 - 32,140 2,096 60,088
Total deferred outflows of resources 8,746 - 140,662 15,987 - 186,067 15,987 367,449
Liabilities
Current liabilities
Accounts payable 129,254 68,270 38,883 152,591 5,095 46,094 2,141 442,328
Accrued liabilities 2,554 - 39,428 6,125 - 50,408 5,514 104,029
Compensated absences 71 - 6,243 1,435 - 3,845 - 11,594
Claims payable 1,689,249 - - 1,075,078 - - 719,171 3,483,498
Total current liabilities 1,821,128 68,270 84,554 1,235,229 5,095 100,347 726,826 4,041,449
Noncurrent liabilities
Compensated absences 859 - 75,747 17,414 - 46,659 - 140,679
Post employment benefits 6,644 - 106,311 9,967 - 152,823 9,967 285,712
Net pension liability 23,633 - 391,639 40,095 - 521,207 40,093 1,016,667
Total noncurrent liabilities 31,136 - 573,697 67,476 - 720,689 50,060 1,443,058
Total liabilities 1,852,264 68,270 658,251 1,302,705 5,095 821,036 776,886 5,484,507
Deferred inflows of resources
Pension 6,143 - 75,427 14,731 - 91,407 14,732 202,440
OPEB 3,261 - 52,164 4,890 - 74,986 4,890 140,191
Total deferred inflows of resources 9,404 - 127,591 19,621 - 166,393 19,622 342,631
Net position
Net investment in capital assets - 10,322,302 356,121 - - 121,257 - 10,799,680
Unrestricted 6,961,356 14,172,375 (260,773) 1,036,653 369,186 (522,012) 2,113,296 23,870,081
Total net position $ 6,961,356 $ 24,494,677 $ 95,348 $ 1,036,653 $ 369,186 $ (400,755) $ 2,113,296 $ 34,669,761
CITY OF COLLEGE STATION, TEXAS
Combining Statement of Net Position
Internal Service Funds
September 30, 2018
Employee Benefits
Equipment
Replacement Fleet Maintenance
Property and
Casualty Unemployment
Utility Customer
Service
Workers'
Compensation
Total Internal
Service funds
Operating revenues
Charges for services $ - $ 6,615,319 $ 2,288,036 $ - $ - $ 2,991,344 $ - $ 11,894,699
Premiums 12,807,559 - - 1,001,886 - - 561,569 14,371,014
Other - - - 322,737 - 159,524 - 482,261
Total operating revenues 12,807,559 6,615,319 2,288,036 1,324,623 - 3,150,868 561,569 26,747,974
Operating expenses
Salaries and benefits 475,562 - 952,328 153,043 - 1,171,478 134,342 2,886,753
Supplies - - 1,164,697 - - 39,219 - 1,203,916
Maintenance - - 30,564 - - 18,661 - 49,225
Purchased professional services 149,028 - 1,903 15,382 - 579,664 11,000 756,977
Purchased property services - - 16,032 - - 37,931 - 53,963
Other purchased services 497 - 56,092 9,000 - 977,825 - 1,043,414
Claims 9,639,778 - - 1,149,981 20,570 - 570,619 11,380,948
Administration fees 51,915 - - 142,033 - - 27,775 221,723
Contributions - 1,595,143 - - - - - 1,595,143
Premiums 1,087,251 - - 351,910 - - 158,287 1,597,448
Depreciation - 2,701,587 37,471 - - 24,251 - 2,763,309
Other 854,177 - 9,192 95,639 - 56,488 - 1,015,496
Total operating expenses 12,258,208 4,296,730 2,268,279 1,916,988 20,570 2,905,517 902,023 24,568,315
Operating income (loss) 549,351 2,318,589 19,757 (592,365) (20,570) 245,351 (340,454) 2,179,659
Nonoperating revenues (expenses)
Investment income 155,102 189,738 4,646 28,165 5,715 2,727 40,943 427,036
Gain (loss) on disposal of assets - 137,756 2,425 - - - - 140,181
Other, net (1,066,817) (55,921) - 196,140 - - - (926,598)
Total nonoperating revenues (expenses) (911,715) 271,573 7,071 224,305 5,715 2,727 40,943 (359,381)
Income (loss) contributions and transfers (362,364) 2,590,162 26,828 (368,060) (14,855) 248,078 (299,511) 1,820,278
Capital contributions and transfers
Transfers in - 919,000 - - - 9,674 - 928,674
Transfers out (61,345) - - - - - - (61,345)
Total capital contributions and transfers (61,345) 919,000 - - - 9,674 - 867,329
Change in net position (423,709) 3,509,162 26,828 (368,060) (14,855) 257,752 (299,511) 2,687,607
Net position - beginning 7,400,821 20,985,515 162,400 1,428,346 384,041 (536,853) 2,436,439 32,260,709
Prior period adjustment (15,756) - (93,880) (23,633) - (121,654) (23,632) (278,555)
Net position - ending $ 6,961,356 $ 24,494,677 $ 95,348 $ 1,036,653 $ 369,186 $ (400,755) $ 2,113,296 $ 34,669,761
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, 2018
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 12,807,559$ 6,615,319$ 2,288,036$ 1,098,511$ -$ 3,109,230 561,569$ 26,480,224$
Cash payments to suppliers for goods and services (10,004,697) (1,901,668) (1,164,579) (451,796) (15,851) (1,494,593) (92,779) (15,125,962)
Cash payments to employees for services (481,710) - (1,192,581) (168,481) - (1,497,993) (152,605) (3,493,371)
Cash paid for miscellaneous services (1,993,343) - (9,192) (589,582) - (56,488) (186,062) (2,834,667)
Net cash provided (used) by operating activities 327,809 4,713,651 (78,316) (111,348) (15,851) 60,156 130,123 5,026,224
Cash flows from noncapital financing activities:
Cash (paid) or received from miscellaneous non operating services 6,755 (55,921) - 196,140 - - - 146,974
Transfers in from other funds - 919,000 - - 9,674 - 928,674
Transfers out to other funds (61,345) - - - - - - (61,345)
Net cash provided (used) by noncapital financing activities (54,590) 863,079 - 196,140 - 9,674 - 1,014,303
Cash flows from capital and related financing activities:
Acquisition and construction of capital assets - (2,393,053) - - - - - (2,393,053)
Proceeds from sale of assets - 205,272 2,425 - - - - 207,697
Net cash provided (used) by capital and related financing activities - (2,187,781) 2,425 - - - - (2,185,356)
Cash flows from investing activities:
Purchase of investments (1,440,450) (1,070,201) (5,735) (113,621) (17,362) (18,237) (159,890) (2,825,495)
Proceeds from sale and maturities of investment securities 81,854 114,718 2,669 18,244 3,410 1,692 25,399 247,985
Investment income 151,437 182,441 4,551 27,225 5,555 2,617 39,627 413,453
Net cash provided (used) by investing activities (1,207,159) (773,042) 1,485 (68,152) (8,397) (13,928) (94,864) (2,164,057)
Net increase (decrease) in cash and cash equivalents (933,940) 2,615,907 (74,406) 16,640 (24,248) 55,902 35,259 1,691,114
Cash and cash equivalents, Oct. 1 8,443,472 9,516,747 301,253 1,749,258 343,126 132,831 2,428,067 22,914,754
Cash and cash equivalents, Sept. 30 7,509,532$ 12,132,654$ 226,847$ 1,765,898$ 318,878$ 188,733 2,463,326$ 24,605,868$
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:
Operating income (loss)549,351$ 2,318,589$ 19,757$ (592,365)$ (20,570)$ 245,351 (340,454)$ 2,179,659$
Adjustment to reconcile operating income (loss) to net
cash provided (used) by operating activities:
Depreciation - 2,701,587 37,471 - - 24,251 - 2,763,309
(Increases) decreases in assets and deferred outflows:
Change in accounts receivable - - - (226,112) - (41,638) - (267,750)
Change in inventory - - 5,650 - - - - 5,650
Change in deferred outflow on pensions 2,600 - 39,796 5,920 - 49,148 5,920 103,384
Change in deferred outflow on OPEB (1,398) - (22,358) (2,096) - (32,140) (2,096) (60,088)
Increases (decreases) in liabilities and deferred inflows:
Change in accounts payable (308,019) (306,525) (35,494) 55,260 4,719 (7,791) 2,141 (595,709)
Change in claims payable 93,547 - - 658,596 - - 477,986 1,230,129
Change in accrued liabilities 231 - 2,123 616 - 6,790 563 10,323
Change in accrued vacation (34) - 9,171 2,770 - 4,521 - 16,428
Change in OPEB (10,147) - (162,353) (15,220) - (233,382) (15,220) (436,322)
Change in net pension liability (11,955) - (183,075) (27,237) - (226,098) (27,237) (475,602)
Change in deferred inflow on pensions 10,372 - 158,832 23,630 - 196,158 23,630 412,622
Change in deferred inflow on OPEB 3,261 - 52,164 4,890 - 74,986 4,890 140,191
Total adjustments (221,542) 2,395,062 (98,073) 481,017 4,719 (185,195) 470,577 2,846,565
Net cash provided (used) by operating activities 327,809$ 4,713,651$ (78,316)$ (111,348)$ (15,851)$ 60,156 130,123$ 5,026,224$
CITY OF COLLEGE STATION, TEXAS
Combining Statement of Cash Flows
Internal Service Funds
For the Fiscal Year Ended September 30, 2018
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.
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.
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.
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.
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 54 in 2009; schedules
presenting governmental fund balance reclassifications begin in that year.
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Governmental activities
Net investment in capital assets 143,530,290$ 153,397,767$ 145,546,799$ 149,875,513$ 153,214,549$ 125,012,201$ 167,101,930$ 176,171,787$ 185,722,689$ 200,134,327$
Restricted 8,077,876 10,201,722 25,565,107 13,606,487 16,751,846 15,608,417 55,374,914 48,362,842 39,533,053 39,720,716
Unrestricted 37,712,097 37,359,741 27,695,418 39,065,396 40,964,678 76,502,627 7,685,763 13,352,352 26,270,518 37,975,425
Total governmental activities net position 189,320,263$ 200,959,230$ 198,807,324$ 202,547,396$ 210,931,073$ 217,123,245$ 230,162,607$ 237,886,981$ 251,526,260$ 277,830,468$
Business-type activities
Net investment in capital assets 147,627,129$ 161,365,075$ 175,059,669$ 179,123,899$ 189,315,182$ 165,180,775$ 200,468,509$ 209,331,986$ 228,519,124$ 235,469,411$
Restricted 3,119,691 1,588,631 1,588,631 1,580,992 1,580,992 1,580,992 1,581,186 1,581,501 1,581,501 17,261,241
Unrestricted 47,397,414 38,818,705 35,213,377 38,597,823 36,847,830 61,775,551 47,781,620 75,737,790 87,978,620 98,105,103
Total business-type activities net position 198,144,234$ 201,772,411$ 211,861,677$ 219,302,714$ 227,744,004$ 228,537,318$ 249,831,315$ 286,651,277$ 318,079,245$ 350,835,755$
Primary government
Net investment in capital assets 291,157,419$ 314,762,842$ 320,606,468$ 328,999,412$ 342,529,731$ 290,192,976$ 367,570,439$ 385,503,773$ 414,241,813$ 435,603,738$
Restricted 11,197,567 11,790,353 27,153,738 15,187,479 18,332,838 17,189,409 56,956,100 49,944,343 41,114,554 56,981,957
Unrestricted 85,109,511 76,178,446 62,908,795 77,663,219 77,812,508 138,278,178 55,467,383 89,090,142 114,249,138 136,080,528
Total primary government net position 387,464,497$ 402,731,641$ 410,669,001$ 421,850,110$ 438,675,077$ 445,660,563$ 479,993,922$ 524,538,258$ 569,605,505$ 628,666,223$
Source: City of College Station
Fiscal Year
CITY OF COLLEGE STATION, TEXAS
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
(unaudited)
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Expenses
Governmental activities:
Police 13,945,079$ 16,063,347$ 15,082,452$ 16,696,975$ 16,831,233$ 17,768,724$ 18,601,237$ 20,858,704$ 22,370,803$ 21,571,950$
Fire 11,778,585 13,301,029 11,749,054 13,706,222 13,748,434 14,245,690 15,095,073 17,663,825 17,980,949 19,367,032
Public works 16,804,436 17,026,827 20,629,662 13,717,564 15,371,773 21,348,088 18,793,401 21,028,954 19,858,859 24,452,406
Parks and recreation 10,136,521 11,202,863 10,146,043 9,638,581 8,983,919 9,197,308 9,884,737 11,161,966 10,774,101 11,727,549
Library 1,052,838 1,103,864 1,130,433 1,142,580 1,064,293 1,149,616 1,213,820 1,177,291 1,182,331 1,118,522
Planning and development services 2,823,296 2,952,177 3,364,877 4,912,517 4,334,608 5,012,992 3,225,321 3,440,211 3,967,606 3,517,911
Information technology 3,471,714 5,048,720 4,165,064 4,268,524 4,565,385 4,663,939 4,416,190 4,907,473 5,027,015 5,027,435
Fiscal services 3,821,996 4,127,990 3,384,388 3,313,726 3,263,269 3,419,923 3,594,382 4,146,833 4,246,886 3,795,099
General government 8,631,908 11,534,705 9,455,960 8,348,922 9,167,476 9,602,139 10,194,285 16,152,324 17,018,777 15,155,670
Capital projects 476,462 256,177 648,589 819,296 733,974 731,621 - - - -
Interest on long-term debt 4,135,146 4,111,523 4,079,379 3,273,938 2,949,240 3,962,347 3,943,972 3,425,529 4,318,990 6,075,924
Unallocated depreciation 789,074 1,047,906 1,130,283 1,149,609 1,146,119 1,161,675 1,235,340 1,299,794 1,390,156 -
Total governmental activities expense 77,867,055 87,777,128 84,966,184 80,988,454 82,159,723 92,264,062 90,197,758 105,262,904 108,136,473 111,809,498
Business-type activities:
Electric 77,441,351 88,685,699 93,277,853 87,221,859 88,438,115 98,269,576 79,828,415 73,880,232 75,878,632 78,029,786
Water 9,287,343 10,190,159 9,960,837 11,132,787 11,662,862 11,517,915 13,082,761 13,062,768 13,652,580 14,041,059
Wastewater 9,829,813 10,604,983 10,114,867 10,952,853 11,370,918 11,205,770 12,437,020 11,995,045 12,281,262 13,170,661
Sanitation 5,776,002 6,527,724 6,558,278 7,825,491 6,301,053 7,497,493 7,786,244 8,216,958 9,006,946 8,554,011
Northgate parking 909,167 1,019,393 944,125 924,532 1,053,839 1,051,901 953,681 946,325 964,358 1,061,336
Total business-type activities expense 103,243,676 117,027,958 120,855,960 118,057,522 118,826,787 129,542,655 114,088,121 108,101,328 111,783,778 114,856,853
Total primary government expense 181,110,731$ 204,805,086$ 205,822,144$ 199,045,976$ 200,986,510$ 221,806,717$ 204,285,879$ 213,364,232$ 219,920,251$ 226,666,351$
Program revenues
Governmental activities:
Charges for services:
Fines, forfeits and penalties 4,491,960$ 4,500,447$ 4,120,077$ 3,896,477$ 3,462,197$ 3,231,069$ 2,900,197$ 3,518,538$ 3,149,197$ 3,379,673$
Licenses and permits 1,007,151 964,344 1,091,983 1,496,989 1,240,300 1,438,082 1,500,777 2,132,802 2,127,142 1,772,959
Public works 1,793,174 1,895,263 2,910,293 2,480,140 2,489,828 2,437,986 2,254,382 2,250,367 5,532,646 11,435,461
Parks and recreation 1,838,810 1,722,840 2,007,032 1,909,008 1,773,554 1,608,329 1,652,014 1,713,907 1,559,905 1,742,638
Other activities 4,494,627 3,378,603 2,516,446 2,506,187 2,903,460 3,532,847 5,832,527 3,260,482 4,077,515 3,759,555
Operating grants and contributions 1,896,623 1,694,228 1,875,849 2,766,187 1,753,970 3,234,317 2,995,401 2,943,080 2,949,829 2,692,063
Capital grants and contributions 2,644,629 19,587,921 3,964,442 4,216,095 7,016,449 7,404,520 3,542,528 14,549,415 13,481,280 14,456,341
Total governmental activities program revenues 18,166,974 33,743,646 18,486,122 19,271,083 20,639,758 22,887,150 20,677,826 30,368,591 32,877,514 39,238,690
Business-type activities:
Charges for services:
Electric sales 82,904,777 91,162,890 101,617,743 96,787,784 95,737,007 97,814,129 101,432,340 101,753,428 101,783,609 105,341,740
Water sales 17,312,431 12,745,173 17,253,787 15,274,883 15,775,334 13,848,402 15,069,720 15,503,526 15,936,976 16,843,347
Sewer service 11,655,528 11,522,025 13,099,783 13,697,532 14,566,975 14,575,907 13,864,099 15,547,324 17,319,645 17,882,386
Garbage collection fees 7,988,795 7,299,273 7,143,536 7,204,013 7,205,029 8,014,628 8,845,145 8,854,342 9,180,351 9,632,481
Parking garage fees 990,735 1,140,833 1,189,443 1,149,277 1,234,799 1,298,034 1,435,290 1,235,798 1,298,986 1,379,287
Operating grants and contributions 17,792 - 3,746 9,718 982 291,366 668,322 1,114,008 1,032,027 1,542,900
Capital grants and contributions 6,846,033 11,703,025 3,857,585 6,890,916 5,345,176 7,309,230 9,596,813 14,192,226 8,559,043 10,062,900
Total business-type activities program revenues 127,716,091 135,573,219 144,165,623 141,014,123 139,865,302 143,151,696 150,911,729 158,200,652 155,110,637 162,685,041
Total primary government program revenues 145,883,065$ 169,316,865$ 162,651,745$ 160,285,206$ 160,505,060$ 166,038,846$ 171,589,555$ 188,569,243$ 187,988,151$ 201,923,731$
Source: City of College Station
Fiscal Year
CITY OF COLLEGE STATION, TEXAS
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
(unaudited)
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Net (expense)/revenue
Governmental activities (59,700,081)$ (54,033,482)$ (66,480,062)$ (61,717,371)$ (61,519,965)$ (69,376,912)$ (69,519,932)$ (74,894,314)$ (75,258,959)$ (72,570,808)$
Business-type activities 24,472,415 18,545,261 23,309,663 22,956,601 21,038,515 13,609,041 36,823,608 50,099,324 43,326,859 47,828,188
Total primary government net expense (35,227,666)$ (35,488,221)$ (43,170,399)$ (38,760,770)$ (40,481,450)$ (55,767,871)$ (32,696,324)$ (24,794,990)$ (31,932,100)$ (24,742,620)$
General revenues and other changes in net position
Governmental activities:
Taxes
Property taxes 22,769,699$ 24,745,344$ 24,333,373$ 24,978,388$ 26,451,943$ 27,349,234$ 30,936,581$ 32,706,952$ 37,476,196$ 43,492,512$
Sales and mixed beverage taxes 19,873,213 19,751,004 20,717,598 21,878,057 23,506,772 25,141,825 27,302,178 27,813,236 29,207,865 28,799,040
Franchise taxes 2,217,618 2,210,902 2,153,827 2,171,277 2,209,091 2,407,344 2,653,641 3,330,088 3,056,286 3,655,061
Hotel taxes 3,574,649 3,387,041 3,558,042 3,643,887 4,393,867 5,127,808 5,336,661 5,277,314 5,152,337 5,737,743
Unrestricted investment earnings 1,413,431 265,424 368,868 283,648 252,308 195,863 379,537 576,209 1,204,827 2,476,318
Gain (Loss) on sale of capital assets - (24,596) - - 1,827,783 6,818,583 (75,177) 46,469 -
Transfers 12,778,642 15,337,330 13,562,095 12,502,186 12,039,798 12,935,733 13,037,208 13,639,821 12,754,258 14,544,135
Total governmental activities 62,627,252 65,672,449 64,693,803 65,457,443 68,853,779 74,985,590 86,464,389 83,268,443 88,898,238 98,704,809
Business-type activities:
Unrestricted investment earnings 654,882 420,236 341,698 316,035 174,170 120,006 187,322 360,459 855,367 1,444,135
Transfers (12,778,642) (15,337,330) (13,562,095) (12,502,186) (12,039,798) (12,935,733) (13,037,208) (13,639,821) (12,754,258) (14,544,135)
Total business-type activities (12,123,760) (14,917,094) (13,220,397) (12,186,151) (11,865,628) (12,815,727) (12,849,886) (13,279,362) (11,898,891) (13,100,000)
Total primary government 50,503,492$ 50,755,355$ 51,473,406$ 53,271,292$ 56,988,151$ 62,169,863$ 73,614,503$ 69,989,081$ 76,999,347$ 85,604,809$
Change in net position
Governmental activities 2,927,171$ 11,638,967$ (1,786,259)$ 3,740,072$ 7,333,814$ 5,608,678$ 16,944,457$ 7,724,373$ 13,639,279$ 26,134,001$
Business-type activities 12,348,655 3,628,167 10,089,266 10,770,450 9,172,887 793,314 23,973,722 36,819,962 31,427,968 34,728,188
Total primary government 15,275,826$ 15,267,134$ 8,303,007$ 14,510,522$ 16,506,701$ 6,401,992$ 40,918,179$ 44,544,335$ 45,067,247$ 60,862,189$
Source: City of College Station
Fiscal Year
CITY OF COLLEGE STATION, TEXAS
Changes in Net Position - continued
Last Ten Fiscal Years
(accrual basis of accounting)
(unaudited)
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Function/Program
Governmental activities:
Police 5,004,712$ 5,161,486$ 4,596,713$ 4,174,931$ 3,650,964$ 3,498,374$ 663,419$ 994,565$ 981,168$ 507,885$
Fire 3,551,620 2,199,375 1,952,851 1,936,311 1,948,961 1,777,507 2,259,979 2,720,224 2,836,228 3,272,395
Public works 4,445,595 15,313,779 5,796,384 5,609,036 8,711,394 8,578,862 4,798,615 15,064,553 16,179,433 24,576,818
Parks and recreation 2,117,227 3,816,773 3,330,986 3,196,969 2,576,020 2,934,766 3,103,886 3,628,318 4,402,398 3,531,529
Library - - - 13,200 - - - - - -
Planning and development services 1,051,943 1,075,342 1,296,213 1,650,017 1,493,021 1,730,441 1,885,563 2,579,587 2,554,194 2,157,272
Information technology - - 15,500 - - - 72 8,835 113 -
Fiscal services 38,377 100,495 215,626 542,689 666,103 1,028,531 2,956,304 3,572,710 3,226,884 3,435,452
General government 1,957,500 5,124,710 1,281,849 2,095,173 1,593,295 3,338,669 5,009,988 1,799,799 2,697,096 1,757,339
Capital improvement program - 951,686 - 52,757 - - - - - -
Subtotal governmental activities 18,166,974 33,743,646 18,486,122 19,271,083 20,639,758 22,887,150 20,677,826 30,368,591 32,877,514 39,238,690
Business-type activities:
Electric 84,552,573 92,530,434 102,516,252 98,200,411 96,283,238 98,872,262 105,438,676 107,111,511 103,150,410 106,438,972
Water 19,065,662 17,118,922 18,710,635 16,905,503 19,167,542 15,854,663 17,157,749 20,205,838 19,567,653 21,095,071
Wastewater 15,100,534 15,208,551 14,584,557 15,844,190 15,946,613 17,072,780 15,871,321 19,112,180 20,033,058 22,047,500
Sanitation 8,006,587 9,574,489 7,147,282 8,914,742 7,233,110 10,053,957 10,985,994 10,535,325 11,060,530 11,724,211
Northgate parking 990,735 1,140,833 1,206,897 1,149,277 1,234,799 1,298,034 1,457,989 1,235,798 1,298,986 1,379,287
Subtotal business-type activities 127,716,091 135,573,229 144,165,623 141,014,123 139,865,302 143,151,696 150,911,729 158,200,652 155,110,637 162,685,041
Total primary government 145,883,065$ 169,316,875$ 162,651,745$ 160,285,206$ 160,505,060$ 166,038,846$ 171,589,555$ 188,569,243$ 187,988,151$ 201,923,731$
Fiscal Year
CITY OF COLLEGE STATION, TEXAS
Program Revenues by Function/Program
Last Ten Fiscal Years
(accrual basis of accounting)
(unaudited)
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
General fund
Nonspendable 62,390$ 70,516$ 58,548$ -$ 59,426$ 64,594$ 63,679$ 71,318$ 334,307$ 628,518$
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 1,647,732 2,128,177
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 20,532,484 24,033,874
Total general fund 9,378,429$ 13,815,881$ 14,393,057$ 16,492,693$ 15,925,532$ 20,244,249$ 22,423,064$ 19,133,202$ 22,514,523$ 26,790,569$
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$ 5,666,288$ -$
Restricted 39,375,368 54,421,910 27,404,127 35,688,123 39,327,653 58,993,882 55,139,903 45,521,097 123,531,962 115,535,066
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 13,845,445 19,303,359
Assigned 609,113 - - - - - - 31,183,615 - -
Unassigned 545,024 - - - - - - - - -
Total all other governmental funds 44,016,562$ 65,421,779$ 38,443,507$ 46,249,727$ 50,003,904$ 69,609,459$ 76,176,965$ 96,744,880$ 143,043,695$ 134,838,425$
Note: The City implemented GASB Statement 54 in 2009; schedules presenting governmental fund balance reclassifications begin in that year.
Source: City of College Station
Fiscal Year
CITY OF COLLEGE STATION, TEXAS
Fund Balances, Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(unaudited)
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Revenues
Taxes 48,435,179$ 49,901,803$ 50,762,840$ 52,671,608$ 55,652,419$ 59,018,199$ 65,141,780$ 68,129,771$ 74,584,272$ 81,603,379$
Licenses and permits 1,007,151 964,344 1,091,983 1,496,989 1,240,300 1,438,082 1,500,777 2,132,802 2,127,142 1,772,959
Intergovernmental 1,896,623 5,022,822 2,143,573 2,759,219 1,749,805 3,234,317 2,734,763 2,998,133 3,058,940 2,684,702
Charges for services 3,543,064 6,042,105 6,113,497 5,616,379 5,918,397 6,236,531 6,318,722 6,568,428 9,931,519 11,301,782
Fines, forfeits and penalties 4,491,960 4,500,447 4,120,077 3,896,477 3,462,197 3,231,069 2,900,196 3,518,538 3,149,197 3,379,673
Special assessments 1,793,174 - - - - - - - - -
Investment income 1,125,382 206,648 368,868 283,648 252,308 195,863 379,540 576,209 1,204,827 2,476,318
Rents and royalties 769,150 749,635 589,528 852,738 753,401 639,267 136,228 187,328 284,351 219,538
Contributions 26,997 605,953 825,532 1,244,973 799,048 1,263,644 1,445,953 1,953,045 2,875,254 1,823,692
Reimbursed expenditures 413,751 - - - - - - - - -
Other revenues 403,548 267,695 730,747 426,218 312,473 674,439 3,386,931 486,037 1,242,420 3,263,666
Total revenues 63,905,979 68,261,452 66,746,645 69,248,249 70,140,348 75,931,411 83,944,890 86,550,291 98,457,922 108,525,709
Expenditures
Police 14,107,740 13,816,620 14,931,212 15,521,284 16,550,111 17,093,860 18,547,794 20,184,487 21,418,030 22,652,536
Fire 11,754,088 11,418,948 11,444,702 12,578,396 13,297,527 13,585,022 14,881,983 16,916,819 17,001,580 19,624,919
Public works 7,920,003 7,123,885 6,677,986 7,343,092 7,397,942 8,632,149 10,272,535 12,459,544 9,837,009 14,897,436
Parks and recreation 9,355,301 8,930,388 9,388,765 8,131,413 7,883,904 7,712,597 8,547,083 9,684,568 9,227,811 10,010,679
Library 1,119,771 1,080,030 1,061,581 1,072,551 994,476 1,078,851 1,138,568 1,098,326 1,097,876 1,118,522
Planning and development services 2,871,341 2,568,464 3,327,495 4,698,749 4,268,854 4,933,780 3,246,431 3,352,961 3,839,117 3,855,144
Information systems 3,299,105 3,887,102 3,902,082 3,844,107 4,271,209 4,214,958 4,112,987 4,491,009 4,600,556 4,488,885
Fiscal services 3,836,786 3,635,009 3,353,387 3,106,265 3,205,204 3,260,242 3,568,357 3,986,352 4,083,402 4,154,931
General government 5,435,355 7,401,157 6,438,313 4,102,550 3,825,760 5,108,448 5,916,111 6,748,354 10,734,954 10,070,272
Capital improvement projects 476,462 132,880 648,589 788,032 733,974 731,621 - - - -
Contributions 2,489,562 2,266,558 2,063,489 2,435,820 2,800,159 3,281,991 3,611,760 4,047,885 4,713,975 4,907,118
Claims - 1,600,000 - - - - - - - -
Other expenditures 487,163 438,757 750,135 1,380,837 1,964,156 679,772 222,057 5,895 242,433 -
Capital outlay 31,931,401 9,765,151 11,501,926 14,341,717 8,802,719 12,636,334 9,654,509 13,783,130 29,828,915 32,479,739
CITY OF COLLEGE STATION, TEXAS
Changes in Fund Balances, Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(unaudited)
Fiscal Year
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Debt service
Principal 7,935,000 8,050,000 8,085,412 8,120,000 8,245,000 8,650,000 9,110,000 8,660,000 10,680,000 12,435,400
Interest 4,114,356 4,133,633 3,698,324 3,696,245 3,747,520 3,707,799 4,220,656 3,769,711 4,627,678 7,024,074
Issuance costs - - - - 154,660 39,719 7,862 311,975 593,227 239,540
Fiscal charges 46,551 227,765 384,196 127,671 - - - - - -
Intergovernmental 745,908 - 924,941 294,103 301,061 489,817 151,289 2,105,813 60,000 -
Total expenditures 107,925,893 86,476,347 88,582,535 91,582,832 88,444,236 95,836,960 97,209,982 111,606,829 132,586,563 147,959,195
Deficiency of revenues under
expenditures (44,019,914) (18,214,895) (21,835,890) (22,334,583) (18,303,888) (19,905,549) (13,265,092) (25,056,538) (34,128,641) (39,433,486)
Other financing sources (uses)
Proceeds from long-term debt 9,815,000 20,685,000 1,977,134 11,727,994 14,505,000 31,895,000 - 26,735,000 62,090,000 18,230,000
Proceeds from refunding bonds - 4,265,000 11,250,000 - - - - 13,915,000 1,815,000 -
Payment to bond escrow agent - (4,283,647) (12,322,570) - - - - (16,087,122) (2,102,205) -
Advance Refunding - - - (11,432,308) (6,054,452) (9,755,695) - - - -
Premium on bonds issued - 75,183 1,172,234 1,132,812 951,174 3,624,222 - 4,329,506 6,603,713 891,194
Sale of capital assets 505,606 5,615 8,690 - - 4,582,111 8,974,205 - 2,438,422 -
Transfers in 22,680,922 16,054,544 19,382,145 22,313,561 18,629,471 20,798,696 27,852,930 21,098,702 21,595,923 21,303,310
Transfers out (8,494,139) (673,081) (7,783,625) (9,385,160) (6,540,298) (7,314,513) (14,815,722) (7,656,495) (8,632,076) (7,626,504)
Total other financing sources 24,507,389 36,128,614 13,684,008 14,356,899 21,490,895 43,829,821 22,011,413 42,334,591 83,808,777 32,798,000
Net change in fund balances (19,512,525)$ 17,913,719$ (8,151,882)$ (7,977,684)$ 3,187,007$ 23,924,272$ 8,746,321$ 17,278,053$ 49,680,136$ (6,635,486)$
Debt services as a percentage of
noncapital expenditures 15.9%15.9%15.3%15.3%15.1%14.9%15.2%12.7%14.9%16.9%
Source: City of College Station
Fiscal Year
CITY OF COLLEGE STATION, TEXAS
Changes in Fund Balances, Governmental Funds - continued
Last Ten Fiscal Years
(modified accrual basis of accounting)
(unaudited)
Fiscal Year Property Sales Hotel Franchise Mixed Drink Total
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
2017 37,167,784 28,561,762 5,152,337 3,056,286 646,103 74,584,272
2018 43,411,535 28,799,040 5,737,743 2,918,519 736,542 81,603,379
Change
2009-2018 90.7%48.2%60.5%31.6%69.3%68.5%
Notes:
Source:
City of College Station
Property taxes include general fund, debt service fund, Northgate TIF (2009), Wolf Pen Creek TIF (2009-2010), and
Medical District TIRZ (2013-2017).
CITY OF COLLEGE STATION, TEXAS
Tax Revenue by Source, Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(unaudited)
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
2009 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%
2010 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%
2011 3,941,112,015 1,236,193,238 1,069,742,963 856,257,215 69,373,412 5,321,417,589 0.447543 5,321,417,589 100.00%
2012 4,087,540,319 1,209,126,533 1,029,151,665 870,386,056 - 5,455,432,461 0.437995 5,455,432,461 100.00%
2013 4,280,768,585 1,295,254,729 1,069,727,466 907,135,778 - 5,738,615,002 0.430687 5,738,615,002 100.00%
2014 4,466,234,632 1,321,942,044 1,185,964,447 1,029,828,136 - 5,944,312,987 0.425958 5,944,312,987 100.00%
2015 4,713,785,311 1,350,665,951 1,323,614,835 1,156,947,087 17,534,345 6,213,584,665 0.452500 6,213,584,665 100.00%
2016 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%
2017 5,904,997,312 1,546,479,664 1,017,433,729 1,308,606,612 40,305,770 7,119,998,323 0.472500 7,119,998,323 100.00%
2018 7,008,645,868 1,715,267,579 713,721,785 1,482,754,690 48,795,103 7,906,085,439 0.497500 7,906,085,439 100.00%
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)
Effective General Total College
Fiscal Tax Basic Obligation Direct Station Brazos
Year Rate (used)Rate Debt Service Rate ISD County
2009 No 0.193352 0.246048 0.439400 1.241050 0.465000
2010 No 0.209967 0.229433 0.439400 1.221100 0.480000
2011 Yes 0.227349 0.220194 0.447543 1.253413 0.480000
2012 Yes 0.236459 0.201536 0.437995 1.309933 0.485600
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 No 0.259447 0.193053 0.452500 1.380000 0.485000
2016 No 0.259448 0.193052 0.452500 1.362900 0.485000
2017 No 0.277161 0.195339 0.472500 1.396000 0.485000
2018 No 0.277161 0.220339 0.497500 1.398000 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 $100 of assessed value)
(unaudited)
City Direct Rates Overlapping Rates
Percent of Percent of
of Total City of Total City
Taxable Taxable Taxable Taxable
2018 Assessed Assessed 2009 Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
CCP College Station I, LLC 74,768,400$ 1 0.95%
College Station Hospital, LP 69,000,000 2 0.87%61,308,070$ 1 1.37%
Post Oak Mall - College Station LLC 68,000,000 3 0.86%55,651,375 2 1.24%
Woodridge College Station Phase II, LLC 56,954,300 4 0.72%
SHP-The Callaway House, LP 55,510,436 5 0.70%
Woodridge College Station Phase I, LLC 54,997,208 6 0.70%
Midway Hospitality, LP 54,727,080 7 0.69%
Culpepper Family, LP 52,322,094 8 0.66%
SW Meadows Point, LP 52,241,125 9 0.66%
TAM The Rise Property, LLC 49,686,952 10 0.63%
Weinburg, Israel & David Alkosser 42,388,230 3 0.95%
Woodlands of College Station 38,790,529 4 0.87%
ACC Op (Callaway Villas) LP 36,846,840 5 0.82%
Commonwealth Austin LP 30,736,980 6 0.69%
Wal-Mart Stores East Inc.30,628,460 7 0.68%
University Heights - CS Acquisitions LP Etal 28,803,300 8 0.64%
Verizon Communications, Inc.28,789,920 9 0.64%
SCI Gateway at CS Fund LLC Etal 27,246,180 10 0.61%
Total 588,207,595$ 7.44%381,189,884$ 8.51%
Source:
Brazos County Appraisal District
CITY OF COLLEGE STATION, TEXAS
Principal Property Taxpayers
Current Year and Nine Years Ago
(unaudited)
2018 2009
Fiscal
Year Taxes Levied Collections
Ended for the Percentage in Subsequent Percentage
Sept 30 Fiscal Year Amount of Levy Years Amount of Levy
2009 22,076,134 21,795,748 98.73%271,290$ 22,067,038$ 99.96%
2010 23,623,086 23,435,105 99.20%177,161 23,612,266 99.95%
2011 24,323,279 24,136,088 99.23%172,093 24,308,181 99.94%
2012 24,979,685 24,762,625 99.13%201,292 24,963,917 99.94%
2013 25,503,096 25,326,360 99.31%158,767 25,485,127 99.93%
2014 26,407,915 26,213,476 99.26%172,208 26,385,685 99.92%
2015 29,803,314 29,414,950 98.70%358,486 29,773,436 99.90%
2016 32,065,351 31,727,823 98.95%299,302 32,027,125 99.88%
2017 37,007,711 36,815,300 99.48%81,673 36,896,973 99.70%
2018 43,300,209 42,824,284 98.90%- 42,824,284 98.90%
Sources:
City of College Station and Brazos County Tax Office
Fiscal Year of the Levy Total Collections to Date
CITY OF COLLEGE STATION, TEXAS
Property Tax Levies and Collections
Last Ten Fiscal Years
(unaudited)
Collected within the
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Utilities 25,483$ 26,442$ 27,724$ 32,048$ 29,102$ 29,956$ 29,451$ 15,820$ 28,679$ 29,448$
Construction 15,768 10,617 10,070 10,900 12,743 12,053 14,804 15,126 18,780 13,900
Manufacturing 16,391 12,221 9,620 6,823 7,433 7,941 9,013 11,962 12,212 14,854
Wholesale Trade 13,761 9,856 10,770 19,556 23,573 26,941 23,240 30,976 39,300 43,876
Retail Trade 693,673 653,561 678,041 699,715 738,897 777,632 829,563 844,066 831,603 822,526
Information 15,427 15,654 16,907 16,984 18,261 21,546 28,076 31,483 31,901 34,132
Finance and Insurance 752 706 840 1,043 1,044 1,336 1,702 2,238 2,105 2,025
Real Estate and Rental/Leasing 18,326 9,288 9,456 9,314 9,785 11,411 13,781 14,260 14,819 13,309
Professional, Scientific and Tech Services 26,234 25,694 13,142 12,901 12,716 14,518 13,942 15,320 16,953 13,942
Administrative, Support, Waste Mgmt, Remediation 18,362 17,610 16,831 17,381 19,645 21,080 23,538 24,743 25,516 26,083
Educational Services 27,645 35,351 34,952 37,434 43,135 43,173 40,762 41,409 40,650 50,184
Health Care and Social Assistance 2,888 2,301 2,049 1,920 2,116 3,103 3,933 3,467 2,774 2,766
Arts, Entertainment and Recreation 9,168 8,671 8,470 9,325 9,488 11,070 14,400 15,927 16,479 16,452
Accommodation and Food Services 205,967 204,731 208,597 217,445 238,186 256,716 293,803 312,834 315,274 326,208
Other Services 15,782 15,338 15,890 16,274 18,594 22,322 25,305 25,339 28,716 40,586
Total 1,105,627$ 1,048,041$ 1,063,359$ 1,109,063$ 1,184,718$ 1,260,798$ 1,365,313$ 1,404,970$ 1,425,761$ 1,450,291$
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:
Source:
Texas State Comptroller of Public Accounts
CITY OF COLLEGE STATION, TEXAS
Taxable Sales by Category
Last Ten Calendar Years
(in thousands of dollars)
(unaudited)
Taxable sales information is not available on a fiscal-year basis.
City Brazos State of
Fiscal Year Direct Rate County Texas
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%
2017 1.50%0.50%6.25%
2018 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)
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 55.98%13,485$ 83.21%1,394 52.03%17,231$ 79.20%
Services 243 11.27%625 3.86%301 11.24%721 3.31%
Wholesale trade 61 2.83%224 1.38%76 2.84%659 3.03%
Utilities, transportation, communications 18 0.83%3 0.02%19 0.71%469 2.16%
Manufacturing 70 3.25%258 1.59%112 4.18%223 1.03%
Construction 97 4.50%237 1.46%143 5.34%209 0.96%
Agriculture, forestry, and fishing 6 0.28%2 0.01%12 0.45%1 0.00%
Finance, insurance, real estate 52 2.41%281 1.73%69 2.58%230 1.06%
All other outlets 402 18.65%1,091 6.73%553 20.64%2,013 9.25%
Total 2,156 100.00%16,206$ 100.00%2,679 100.00%21,756$ 100.00%
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
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.
CITY OF COLLEGE STATION, TEXAS
Sales Tax Revenue Payers by Industry
Calendar Years 2008 and 2017
(dollars are in thousands)
(unaudited)
Calendar Year 2008 Calendar Year 2017
General Premiums on Premiums on General Premiums on Premiums on Total Percentage
Fiscal Obligation General Certificates of Certificates of Revenue Obligation General Certificates Certificates of Primary of Personal Per
Year Bonds Obligation Bonds Obligation Obligation Bonds Bonds Obligation Bonds of Obligation Obligation Government Income Capita
2009 59,145,000 - 38,575,000 - 93,755,000 - - 52,285,000 - 243,760,000 14.04%2,682
2010 75,020,000 - 35,675,000 - 87,745,000 3,830,000 - 53,940,000 - 256,210,000 15.08%2,742
2011 78,055,000 - 26,085,000 - 54,495,000 28,655,000 - 54,950,000 - 242,240,000 15.20%2,560
2012 75,695,000 - 21,415,000 - 45,060,000 36,280,000 - 63,085,000 - 241,535,000 12.77%2,492
2013 79,710,000 3,043,121 17,160,000 - 34,765,000 39,230,000 3,777,922 71,025,000 845,571 249,556,613 14.39%2,583
2014 89,050,000 3,949,973 21,805,000 1,468,916 14,920,000 49,900,000 5,099,362 91,310,000 4,301,539 281,804,790 13.35%2,770
2015 81,855,000 3,533,635 19,890,000 1,391,281 13,395,000 44,670,000 4,537,503 87,305,000 4,068,926 260,646,344 10.88%2,495
2016 88,380,000 6,592,456 30,080,000 3,035,934 - 57,115,000 7,002,044 82,185,000 4,548,153 278,938,587 11.15%2,556
2017 97,355,000 7,274,385 72,270,000 8,066,751 - 61,565,000 8,061,609 77,475,000 5,655,709 337,723,455 11.72%2,882
2018 89,925,000 6,555,914 85,495,000 8,518,894 - 55,240,000 7,089,648 91,835,000 6,269,252 350,928,708 12.48%2,932
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.
In 2017, the Landfill Obligation partially refunded the Certificates of Obligation portion and now consists of Certificates of Obligation as well as General Obligation Debt.
For the years 2009 to 2012, premiums on general obligation bonds and premiums on certificates of obligation were not broken out in the legacy system.
Sources:
First Southwest
City of College Station Planning and Development Services
CITY OF COLLEGE STATION, TEXAS
Outstanding Debt by Type
Last Ten Fiscal Years
(unaudited)
Business-Type ActivitiesGovernmental Activities
General Percentage of
Obligation Less Debt Service Net Actual Taxable
Fiscal Year Bonds *Cash Funds Bonded Debt Value of Property Per Capita
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 86,531,042 3,032,594 83,498,448 1.29%794
2014 98,099,335 2,839,310 95,260,025 1.39%847
2015 134,596,137 2,560,216 132,035,921 1.89%1,187
2016 159,089,500 3,753,179 155,336,321 2.18%1,423
2017 174,255,995 4,517,783 169,738,212 2.22%1,448
2018 158,810,562 4,492,295 154,318,267 1.73%1,289
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)
* The amounts for General Obligation Bonds include principal and premiums for fiscal years 2013 to 2018. For
prior periods the amount is only principal due to limited acessibility of data.
Estimated Estimated Share
Debt Percentage of Direct and
Governmental Unit Outstanding Applicablea Overlapping Debt
Debt repaid with property taxes:
College Station I.S.D.342,500,000$ 88.85%304,311,250$
Brazos County 79,135,000 49.18%38,918,593
Bryan I.S.D.213,345,000 2.55%5,440,298
Other debt:
College Station I.S.D.- 0.00%-
Brazos County - 0.00%-
Bryan I.S.D. capital lease - 0.00%-
Subtotal, overlapping debt 348,670,141
City direct debt 190,494,808
Total direct and overlapping debt 539,164,949$
Notes:
Source:
Debt outstanding data provided by each governmental unit. Assessed value data used to estimate applicable
percentages provided by the Brazos County Appraisal District.
CITY OF COLLEGE STATION, TEXAS
Direct and Overlapping Governmental Activities Debt
As of September 30, 2018
(unaudited)
Overlapping governments are those that coincide, at least in part, with the geographical boundaries of the City.
This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the
residents and businesses of College Station. This process recognizes that, when considering the City's ability to
issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken
into account. However, this does not imply that every taxpayer is a resident and therefore responsible for repaying
the debt of each overlapping government.
a For debt repaid with property taxes, the percentage of overlapping debt is estimated using taxable assessed
property values. Applicable percentages were estimated by determining the portion of another governmental unit's
taxable assessed value that is within the City's boundaries and dividing it by each unit's total assessed value.
CITY OF COLLEGE STATION, TEXAS
Legal Debt Margin Information
September 30, 2018
(unaudited)
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 $100.00 at
100% valuation.
Utility Less:Net Average Maximum
Service Operating Available Debt Service Annual Debt Service Annual
Fiscal Year Charges Expenses Revenue Total Coverage Total Coverage
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
2017 133,701,997 78,765,869 54,936,128 8,778,260 *6.26 16,314,728 3.37
2018 138,638,447 77,828,073 60,810,374 9,331,199 6.52 16,991,184 3.58
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.
* The Average Debt Service Total for 2017 was incorrectly caculated at $21,063,278 but restated here correctly at $8,778,260.
Source:
City of College Station
Maximum Debt Service Total includes Utility Revenue Bonds, Certificates of Obligation and GO Refunding Bonds that have been
issued for Utility projects.
The coverage ratios presented in this schedule are formulas required by bond resolutions. The bond resolutions require that net
revenues equal at least 1.4 times the average annual debt service on all revenue bonds and other indebtedness payable from those
revenues. The bond resolutions also require that net revenues equal at least 1.25 times the maximum annual debt service on all
revenue bonds and other indebtedness payable from those revenues.
CITY OF COLLEGE STATION, TEXAS
Pledged-Revenue Coverage
Last Ten Fiscal Years
(unaudited)
Utility Revenue Bonds, Certificates of Obligation, and General Obligation Refunding Bonds
Personal Income
Calendar (thousands Per Capita Unemployment
Year Population of dollars)Personal Income Rate %
2008 90,897 1,699,361$ 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
2016 109,895 2,880,812 26,214 3.2
2017 117,774 2,811,048 23,868 2.6
Sources:
City of College Station Planning Division (population)
U. S. Census Bureau, American Community Survey (personal income)
Texas Workforce Commission (unemployment rate)
CITY OF COLLEGE STATION, TEXAS
Demographic and Economic Statistics
Last Ten Calendar Years
(unaudited)
2018 2009
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
Texas A&M University Texas A&M University
Wal-Mart/Sam's Wal-Mart
Source:
Notes:
Data includes principal employers in Brazos County.
The Texas Workforce Commission ranking and number of employees data is
confidential.
CITY OF COLLEGE STATION, TEXAS
Principal Area Employers
Last Calendar Year and Nine Years Prior
(unaudited)
Texas Workforce Commission, Labor Market/Career Information
Department, Research Valley Partnership
Employers are listed in alphabetical order and do not reflect any ranking.
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Function/Program
Police 176.0 169.0 180.5 182.5 192.5 196.5 206.5 206.5 213.5 220.5
Fire 121.0 118.0 120.5 139.0 139.0 140.0 152.0 152.0 157.0 160.0
Public Works 113.0 94.0 96.0 114.0 116.0 118.0 124.0 128.0 128.5 130.5
Parks and Recreation 133.0 133.0 119.0 117.0 111.5 105.5 106.5 107.0 106.8 109.8
Planning and Development Services 37.0 41.0 54.0 58.5 56.5 56.0 52.0 51.5 55.5 58.0
Information Services 32.0 30.5 30.0 30.5 29.5 30.5 30.5 31.5 31.5 31.5
Fiscal Services 70.5 70.0 66.5 69.8 68.8 69.8 72.8 76.8 70.3 71.3
General Government 79.5 75.0 61.5 37.5 36.5 37.5 47.0 49.5 53.5 56.5
Electric 65.0 64.0 63.5 67.5 69.5 70.5 74.5 74.5 76.5 80.5
Water / Sewer Services 76.5 70.5 74.0 77.0 77.0 78.0 84.5 84.5 86.5 87.0
BVSWMA 25.0 23.5 22.0 22.0 -- - - - -
Capital Project 10.0 9.0 9.0 --- - - - -
Total 938.5 897.5 896.5 915.3 896.8 902.3 950.3 961.8 979.6 1005.5
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.
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)
Fiscal Year
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Function/Program
General Government
Open records requests 164 123 240 194 233 432 531 703 796 1,227
Economic development prospects 23 55 31 25 36 35 37 55 57 64
Code enforcement cases processed 6,248 5,268 4,701 5,011 4,517 7,941 9,600 7,383 12,169 11,115
Non-profit agencies/contracts monitored 9 10 8 7 8 7 7 4 7 6
Applicants receiving homebuyers assistance 4 6 3 15 8 4 4 2 2 7
Police
DUI/DWI arrests 430 449 571 551 473 474 400 408 266 345
Citations processed 17,275 22,224 42,690 39,145 31,348 29,187 25,070 36,977 34,742 29,042
Uniform patrol calls handled 48,297 58,656 61,283 63,000 75,988 71,373 53,259 62,067 96,479 85,416
Average response time on high priority calls 6:18 mins 6:52 mins 6:41 mins 6:38 mins 4:31 mins 7:10 mins 7:46 mins 7:54 mins 7:54 mins 6:31 mins
Criminal investigation new cases assigned 2,590 2,098 2,582 2,089 2,158 1,894 2,196 1,942 1,756 1,635
Fire
Fire incidents (fire, rescue, and hazmat)2,008 2,301 1,813 1,751 2,608 2,974 2,489 2,640 2,834 267
Business safety inspections 760 1,364 1,151 907 889 1,345 563 233 422 1,170
EMS incidents 5,367 5,414 5,407 6,814 4,846 5,170 5,959 6,020 7,073 6,770
EMS unit responses 5,051 5,646 6,090 6,295 8,188 9,435 10,099 6,990 7,073 12,440
Public Works
Street overlay lane miles 9 2 11 10 13 13 12 18 26 15
Potholes repaired 18,000 68,548 67,448 70,515 62,596 61,439 25,392 75,574 43,741 18,632
Curb miles swept 5,620 5,595 6,244 7,131 5,826 6,311 6,672 6,863 6,283 5,819
Note: In FY10 number of potholes repaired went to number of square feet repaired.
Parks and Recreation
Instructional participants 3,077 3,112 2,765 1,835 1,600 2,495 2,598 2,191 2,288 2,060
Pool customers 138,785 93,302 114,458 144,059 128,081 73,229 81,083 89,980 53,685 52,304
CITY OF COLLEGE STATION, TEXAS
Operating Indicators by Function/Program
Last Ten Fiscal Years
(unaudited)
Fiscal Year
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Function/Program
Planning and Development Services
Permits processed 5,819 5,972 6,026 5,600 3,991 4,446 7,766 5,797 7,863 2,465
Building inspections performed 12,938 12,379 11,583 12,100 12,945 13,859 16,069 19,860 23,609 16,900
Parking citations issued 9,686 6,763 4,488 6,530 6,868 7,320 7,515 9,899 7,877 8,060
Community enhancement cases 11,622 11,408 8,632 8,900 6,518 7,941 9,600 *
Electric
Number of connections 37,818 38,255 37,829 39,123 38,138 19,000 38,224 32,000 39,300 39,435
Average monthly consumption (KWH)64,065,679 65,049,732 68,191,018 65,266,563 64,568,405 66,715,908 69,577,111 68,840,787 69,814,277 72,239,944
Water
Number of units 37,344 37,596 37,565 39,338 40,767 24,847 41,540 41,709 43,199 44,995
Average monthly consumption (MGW)345,170 301,399 408,327 356,791 380,558 343,360 339,840 352,253 382,020 383,830
Sewer
Number of units 34,743 35,853 35,510 36,908 38,688 32,065 40,806 40,866 42,840 46,031
Average daily sewage treatment 6,625 6,700 6,242 6,453 6,500 7,129 7,598 7,584 7,436 7,468
(thousands of gallons)
New services completed 604 377 301 376 319 555 623 590 461 412
Sanitation
Number of users (units)30,750 30,779 30,455 31,573 32,551 23,239 22,210 22,442 22,897 24,716
Residential tons collected 21,406 28,451 22,775 28,991 25,493 26,290 25,573 21,577 22,248 24,950
Residential tons recycled 1,064 1,053 1,173 1,124 1,010 982 4,809 1,999 2,690 2,659
Commercial tons collected 36,245 36,558 35,133 34,608 36,751 37,856 39,272 40,302 39,136 39,048
Parking garage
Active contract customers 333 524 482 460 354 410 364 335 585 662
Hourly cash customers 104,342 85,210 83,048 80,127 81,624 80,555 80,012 77,511 73,196 74,537
Utility Customer Service
Payments processed 461,557 467,262 436,936 476,999 498,703 495,659 502,752 531,138 506,308 521,190
Incoming calls 96,876 85,212 84,861 94,986 93,075 93,862 94,037 93,970 82,956 81,336
Meters read 694,270 708,672 719,749 732,631 744,298 758,306 776,279 795,871 815,105 834,712
Source:
City of College Station various departments
Notes:
*The City discontinued tracking Community Enhancement cases separately from Code Enforcement cases processed.
Operating Indicators by Function/Program - continued
Last Ten Fiscal Years
(unaudited)
Fiscal Year
CITY OF COLLEGE STATION, TEXAS
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Function/Program
Police
Patrol units 29 27 33 32 39 39 39 39 41 41
Jail capacity 17 17 17 17 17 17 17 17 17 17
Fire stations 4 4 4 5 6 6 6 6 6 6
Note: The Fire Department operates an additional fire station located at the airport.
Public Works
Streets (linear miles)428 453 474 482 482 493 505 543 559 566
Sidewalks (miles)119 130 138 150 156 162 181 184 202 220
Traffic signals 66 69 70 75 76 77 77 79 81 87
Storm sewers (miles)80 83 83 89 89 95 104 106 108 111
Note: Storm sewer mileage includes both underground pipes and valley gutters.
Parks and Recreation
Acreage 1,306 1,327 1,327 1,327 1,328 1,412 1,448 1,448 1,449 1,429
Play units 54 56 57 57 56 61 64 63 63 69
Softball/baseball fields 35 36 36 36 36 41 41 43 22 41
Soccer fields 29 30 30 30 30 35 26 33 29 31
Jogging/walking trails 33 34 34 34 34 41 42 42 42 49
Community centers 3 3 3 3 2 2 2 2 3 3
Pools 3 3 3 3 3 3 3 3 3 3
Pavilions (rentable)6 6 7 7 7 7 6 8 7 7
Note: Some parks have multiple play units. Softball/baseball fields include practice fields.
Electric
Peak demand (megawatts)355 305 305 325 325 204 208 208 207 217
Number of substations 5 6 6 6 6 6 7 7 7 7
Distribution lines (miles)432 440 444 438 458 458 471 471 490 506
Water
Water mains (miles)385 396 402 410 415 420 430 438 444 454
Fire hydrants 2,494 2,562 2,614 2,682 2,741 2,798 2,869 2,946 3,013 3,104
Number of wells 8 9 9 9 9 9 9 9 9 9
Water production capacity 26,000 32,000 27,000 30,000 29,000 29,000 31,400 35,000 29,000 29,000
(thousands of gallons per day)
Sewer
Sanitary sewer lines (miles)305 313 319 324 324 324 338 348 350 363
Treatment capacity 11,500 11,500 11,500 11,500 11,500 11,500 11,500 11,509 11,509 11,509
(thousands of gallons per day)
Sanitation
Collection trucks 25 25 25 25 25 26 27 27 28 28
Residential collection containers 20,275 20,671 20,550 21,547 22,470 23,239 24,253 24,881 25,180 25,915
Commercial collection containers 1,644 1,669 1,694 1,719 1,744 1,894 1,916 1,916 1,916 1,994
Fleet number of vehicles 647 662 662 576 570 596 600 663 775 775
Source:
City of College Station
CITY OF COLLEGE STATION, TEXAS
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
(unaudited)
cstx.gov/cafr
Independent Auditor’s Report
The Mayor and City Council
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, the discretely presented component unit, each major fund and the aggregate remaining fund
information of the City of College Station, Texas (City), as of and for the year ended September 30, 2018,
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 did not
audit the financial statements of Brazos Valley Solid Waste Management Agency, Inc. (BVSWMA), a
joint venture between the City of College Station and City of Bryan, which statements reflect total net
position of $34,522,485 of which 50% ($17,261,241) is recorded in the City’s statement of net position
and represents 3.20% of the business type activities total assets and 13.5% of the aggregate remaining
funds total assets. We did not audit the financial statements of Experience BCS, the discretely presented
component unit of the City. The financial statements of Experience BCS and BVSWMA were audited by
other auditors whose reports have been furnished to us, and our opinions, insofar as they relate to the
amounts included as equity in joint venture and the discretely presented component unit, are based solely
on the reports of other auditors. 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. The financial statements of Experience BCS
and BVSWMA were not audited in accordance with Government Auditing Standards.DRAFT
The Mayor and Council
City of College Station, Texas
Page 11
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.
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, based on our audit and the reports of other auditors, the financial statements referred to
above present fairly, in all material respects, the respective financial position of the governmental
activities, the business-type activities, the discretely presented component unit, each major fund and the
aggregate remaining fund information of the City of College Station, Texas, as of September 30, 2018,
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.
Emphasis of Matter
As discussed in Notes 1 and 2 to the financial statements, in 2018 the City adopted Governmental
Accounting Standards Board Statement No. 75, Accounting and Financial Reporting for Postemployment
Benefits Other Than Pensions. Our opinions are not modified with respect to this matter.
The 2017 financial statements, before they were restated for the matters discussed in Note 2, were audited
by other auditors, and their report thereon, dated February 19, 2018, expressed unmodified opinions. Our
opinions are not modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis, pension and other postemployment benefit information, and the schedule of
revenues, expenditures and changes in fund balance budget and actual – general fund as listed in the table
of contents 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. DRAFT
The Mayor and Council
City of College Station, Texas
Page 12
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City of College Station's basic financial statements. The introductory section, combining
and individual fund statements and schedules and statistical section as listed in the table of contents are
presented for purposes of additional analysis and are not a required part of the basic financial statements.
The combining and individual fund statements and 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 fund statements and 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.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we also have issued our report dated March __,
2019, 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 solely to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness
of the City's 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.
Houston, Texas
March __, 2019
DRAFT
Audit Committee
Honorable Mayor, Karl Mooney and Members of City Council
Mr. Bryan Woods, City Manager
Mr. Jeff Kersten, Assistant City Manager and Chief Financial Officer
City of College Station
College Station, Texas
As part of our audits of the financial statements and compliance of the City of College Station
(City) as of and for the year ended September 30, 2018, we wish to communicate the following
to you.
AUDIT SCOPE AND RESULTS
Auditor’s Responsibility Under 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
and U.S. Office of Management and Budget (OMB) Title 2 U.S. Code of Federal
Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (Uniform Guidance)
An audit performed 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 and U.S. Office of
Management and Budget (OMB) Uniform Guidance is designed to obtain reasonable, rather than
absolute, assurance about the financial statements and about whether noncompliance with the
types of compliance requirements described in the OMB Compliance Supplement that could
have a direct and material effect on a major federal program occurred. In performing auditing
procedures, we establish scopes of audit tests in relation to the financial statements taken as a
whole. Our engagement does not include a detailed audit of every transaction. Our engagement
letter more specifically describes our responsibilities.
These standards require communication of significant matters related to the financial statement
and compliance audits that are relevant to the responsibilities of those charged with governance
in overseeing the financial reporting process. Such matters are communicated in the remainder
of this letter or have previously been communicated during other phases of the audit. The
standards do not require the auditor to design procedures for the purpose of identifying other
matters to be communicated with those charged with governance.
Audits of the financial statements and compliance do not relieve management or those charged
with governance of their responsibilities. Our engagement letter more specifically describes
your responsibilities. DRAFT
-2-
Qualitative Aspects of Significant Accounting Policies and Practices
Significant Accounting Policies
The City’s significant accounting policies are described in Note 1 of the audited financial
statements.
Alternative Accounting Treatments
No matters are reportable.
Management Judgments and Accounting Estimates
Accounting estimates are an integral part of financial statement preparation by management,
based on its judgments. The following areas involve significant areas of such estimates for
which we are prepared to discuss management’s estimation process and our procedures for
testing the reasonableness of those estimates:
Allowance for doubtful accounts
Unbilled accounts receivable
Insurance and risk management liability
Actuarial assumptions used to estimate the net pension liability and related deferred
inflows and outflows of resources
Actuarial assumptions used to estimate the net other postemployment benefits
liability and related deferred inflows and outflows of resources
Financial Statement Disclosures
The following areas involve particularly sensitive financial statement disclosures for which we
are prepared to discuss the issues involved and related judgments made in formulating those
disclosures:
Other postemployment benefits
Defined benefit pension plan
Adjustments to fund balances and net position
Commitments and contingencies
Audit Adjustments
During the course of any audit, an auditor may propose adjustments to financial statement
amounts. Management evaluates our proposals and records those adjustments which, in its
judgment, are required to prevent the financial statements from being materially misstated.
Some adjustments proposed were not recorded because their aggregate effect is not currently
material; however, they involve areas in which adjustments in the future could be material,
individually or in the aggregate. DRAFT
-3-
Areas in which adjustments were proposed include:
Proposed Audit Adjustments Recorded
Accounts receivable
Provision for doubtful accounts
Deferred inflows of resources
Fiduciary fund net position
Beginning net position
Sales tax revenue
Proposed Audit Adjustments Not Recorded
Attached is a summary of uncorrected misstatements we aggregated during the
current engagement and pertaining to the latest period presented that were determined
by management to be immaterial, both individually and in the aggregate, to the
financial statements as a whole.
Auditor’s Judgments About the Quality of the City’s Accounting Principles
No matters are reportable.
Significant Issues Discussed with Management
During the audit process, the following issues were discussed or were the subject of
correspondence with management:
Implementation of Governmental Accounting Standards Board Statement No. 75,
Accounting and Financial Reporting for Postemployment Benefits Other Than
Pensions
Various restatements to the financial statements
Other Material Communications
Listed below are other material communications between management and us related to the
audit:
Management representation letter (attached)
We orally communicated to management other deficiencies in internal control
identified during our audit that are not considered material weaknesses or significant
deficiencies. DRAFT
-4-
INTERNAL CONTROL OVER FINANCIAL REPORTING
In planning and performing our audit of the financial statements of the City as of and for the year
ended September 30, 2018, 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, we
considered the City’s internal control over financial reporting (internal control) as a basis for
designing our auditing procedures for the purpose of expressing our opinion on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s
internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s
internal control.
Our consideration of internal control was for the limited purpose described in the preceding
paragraph and was not designed to identify all deficiencies in internal control that might be
significant deficiencies or material weaknesses and, therefore, there can be no assurance that all
deficiencies, significant deficiencies or material weaknesses have been identified. However, as
discussed below, we identified a deficiency in internal control that we consider to be a significant
deficiency.
A deficiency exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent or detect and
correct misstatements of the City’s financial statements on a timely basis. A deficiency in design
exists when a control necessary to meet a control objective is missing or an existing control is
not properly designed so that, even if the control operates as designed, a control objective would
not be met. A deficiency in operation exists when a properly designed control does not operate
as designed or when the person performing the control does not possess the necessary authority
or competence to perform the control effectively.
A material weakness is a deficiency, or a combination of deficiencies, in internal control, such
that there is a reasonable possibility that a material misstatement of the City’s financial
statements will not be prevented or detected and corrected on a timely basis.
A significant deficiency is a deficiency, or combination of deficiencies, in internal control that is
less severe than a material weakness, yet important enough to merit attention by those charged
with governance.
We observed the following matters that we consider to be a significant deficiency.
Significant Deficiency
Refer to the Independent Auditor’s Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of the Financial Statements Performed in
Accordance with Government Auditing Standards. DRAFT
-5-
OTHER MATTERS
We observed the following matters and offer these comments and suggestions We can discuss
these matters further at your convenience and may provide implementation assistance for
changes or improvements.
Future Accounting Standards
GASB Statement No. 84, Fiduciary Activities (GASB 84)
GASB 84 establishes criteria for identifying fiduciary activities. It presents separate criteria for
evaluating component units, pension and other postemployment benefit arrangements and other
fiduciary activities. The focus is on a government controlling the assets of the fiduciary activity
and identification of the beneficiaries of those assets. Fiduciary activities are reported in one of
four types of funds: pension (and other employee benefit) trust funds, investment trust funds,
private-purpose trust funds or custodial funds. Custodial funds are used to report fiduciary
activities that are not held in a trust. The agency fund designation will no longer be used. GASB
84 also provides guidance on fiduciary fund statements and timing of recognition of a liability to
beneficiaries.
GASB 84 is effective for the City’s 2020 fiscal year. Earlier application is encouraged.
GASB Statement No. 87, Leases (GASB 87)
GASB 87 provides a new framework for accounting for leases under the principle that leases are
financings. No longer will leases be classified between capital and operating. Lessees will
recognize an intangible asset and a corresponding liability. The liability will be based on the
payments expected to be paid over the lease term, which includes an evaluation of the likelihood
of exercising renewal or termination options in the lease. Lessors will recognize a lease
receivable and related deferred inflow of resources. Lessors will not derecognize the underlying
asset. An exception to the general model is provided for short-term leases that cannot last more
than 12 months. Contracts that contain lease and non-lease components will need to be separated
so each component is accounted for accordingly.
GASB 87 is effective for financial statements for fiscal years beginning after December 15,
2019. Earlier application is encouraged. Governments will be allowed to transition using the
facts and circumstances in place at the time of adoption, rather than retroactive to the time each
lease was begun. DRAFT
-6-
Other Industry Trends and Observations:
A Structured Approach to Managing Public Sector Industry Risks
Risk management is an integral part of all public sector processes. Increasing regulatory
pressures, constantly evolving technological changes, higher costs and calls for greater
transparency require public sector organizations to ensure risks are being managed and mitigated
appropriately. The adoption of a structured approach and utilization of a risk management
framework can help public sector organizations transition from the traditional siloed approach of
managing risks to a more holistic, integrated approach. To advance safety, reduce uncertainty,
minimize risks and maximize value, we recommend public sector organizations perform an
evaluation of their current risk management process. As a best practice, we recommend the City
consider the implementation of a comprehensive framework for enterprise-wide risk
management.
Meeting the Increasing Challenges of Cybersecurity
The increasing value of electronic protected health information (ePHI), payment card data and
intellectual property (e.g. trade secrets) is driving more organizations of all sizes to prepare for
the potential of a cyberattack. Hackers and cyber-thieves have become adept at pilfering
confidential information, using ransomware to extort money and leveraging social engineering
techniques to trick employees into wiring funds.
As a first step to improving their cyber-readiness, organizations need to perform a
cybersecurity risk assessment to determine the current state of cybersecurity
processes, controls and technology. This effort can determine how well the
organization can prevent, detect and respond to cyber-attacks.
Key to the assessment process is choosing an appropriate framework against which
the organization may be evaluated. In fact, two nationally recognized organizations
have developed cybersecurity frameworks.
The National Institute of Standards and Technology (NIST) has developed a
Cybersecurity Framework to assist organizations manage cybersecurity-related risk
more effectively. The NIST Cybersecurity Framework provides a prioritized,
flexible, repeatable and a cost-effective approach that can be used in any industry or
organization.
For organizations that store, process or transmit ePHI, there is an additional industry-
specific framework. The Health Information Trust (HITRUST) Alliance—in
collaboration with health care and information security professionals—has developed
the HITRUST Common Security Framework (CSF). The CSF rationalizes relevant
health care regulations and standards into a single overarching security framework.
Once the framework has been chosen, we recommend that management consider performing a
cybersecurity risk assessment to gauge the overall readiness and maturity of existing controls and
perform appropriate testing of the IT infrastructure and employee awareness. DRAFT
-7-
Risk of Manipulation of Payee within an Accounts Payable System
Recent fraud trends have shown an increase in the manipulation of the payee within an accounts
payable system. In these frauds, the payee on the actual check cashed by the financial institution
was different than the payee within the accounts payable system. Within the accounting system,
the payment appears to be legitimate, including an approved payee and appropriate postings to
related expense accounts. However, when looking at the physical check, the payee does not
agree to the payee within the accounts payable system.
Various organizations have observed the following manipulations:
Certain systems allow for the payee to be modified during the processing of accounts
payable, just prior to the printing of the check. The payee within the system does not
change and the coding to the expense accounts is not modified. The manipulation
simply modifies the payee on the check upon printing.
In circumstances where the accounts payable system will not allow for the
modification discussed above prior to printing, there have been instances where the
system-generated check is voided and a manual check for the same amount is
generated, to allow for the manipulation of the payee. The check is not actually
voided in the system, therefore, not causing reconciliation issues.
Use of manual checks – when a manual check is generated, the check is entered using
a legitimate payee within the system, but the payee is changed on the check itself.
Each of the above manipulations results in the payee on the physical check differing from the
payee within the accounting system. Therefore, if a review is performed based solely on system-
generated reports, the manipulation would likely not be identified.
As many companies have moved away from obtaining physical check copies from their financial
institutions, the identification of this fraud has become extremely difficult. A physical review of
a canceled check is the strongest form of detection.
We recommend the City request copies of cancelled checks from its financial institutions on a
random basis, for example, on a semiannual or quarterly basis, and have someone without
accounts payable or cash disbursement responsibilities perform a review of the cancelled checks,
focusing on the legitimacy of the payee. DRAFT
-8-
Capital Construction Internal Auditing
Organizations who undertake construction projects are financially at risk and often experience
cost overruns, excessive change orders and project delays. Engaging a Certified Construction
Auditor (CCA) can be an effective method for monitoring risk and controlling construction
costs. A CCA will work with your team to provide assistance from the project inception through
closeout as follows:
Before construction, the internal audit team can help navigate negotiations of terms
and conditions to help protect the organization’s financial interest. In addition, the
internal auditor can review budgetary information, subcontractors, cost recovery
risks, ambiguous language risks and other various contractual clauses.
During construction, the internal audit team analyzes project billings to consider
whether the project charges are adequately supported and in accordance with the
terms and conditions of the contract. Items typically reviewed include: equipment
rentals, insurance certificates and bonds, subcontractors pay applications, job cost
data, payroll registers, labor burdens, lien waivers, project schedules and more.
After construction, the internal audit team will conduct a closeout review. During a
closeout internal audit engagement, the organization’s accounting records are
reconciled to the general contractor’s records. Areas reviewed typically include the
following: job cost data, change orders, allowance and contingencies, equipment
charges, labor and labor burdens, overhead rates and re-compute shared savings (if
applicable).
We recommend conducting construction internal audits on all significant construction projects to
help reduce risk and control costs.
This communication is intended solely for the information and use Audit Committee, City
Council and management, and is not intended to be and should not be used by anyone other than
these specified parties.
March __, 2019 DRAFT
Before Subsequent to
Misstatements Misstatements Misstatements % Change
Total Assets & Deferred Outflows 526,036,175 526,036,175
Total Liabilities & Deferred Inflows (248,205,707)(248,205,707)
Total Net Position (277,830,468)(277,830,468)
General Revenues & Transfers (98,704,809)(98,704,809)
Net Program Revenues/ Expenses 72,570,808 498,465 73,069,273 0.69%
Change in Net Position (26,134,001)498,465 (25,635,536)-1.91%
CITY OF COLLEGE STATION TEXAS
ATTACHMENT
This analysis and the attached "Schedule of Uncorrected Misstatements (Adjustments Passed)" reflects the effects on the financial
statements if the uncorrected misstatements identified were corrected.
Governmental Activities (Government-Wide Statements)
QUANTITATIVE ANALYSIS
Governmental Activities (Government-Wide Statements)SCHEDULE OF UNCORRECTED MISSTATEMENTS (ADJUSTMENTS PASSED)Assets LiabilitiesGeneral Revenues & TransfersNet Program Revenues/ Expenses Net PositionChange in Net PositionNet PositionDescription Financial Statement Line ItemDR (CR)DR (CR)DR (CR)DR (CR)DR (CR)DR (CR)DR (CR)Turnaround effect of prior year passed adjustment to record prepaid expense as of 9/30/17.F0 0 0 498,465 (498,465) 0 0 Beginning net position(498,465)Expense498,465Total passed adjustments000498,465(498,465)00Impact on Change in Net Position498,465Impact on Net Position0Client: CITY OF COLLEGE STATION TEXASPeriod Ending: September 30, 2018Net Effect on Following YearFactual (F), Judgmental (J), Projected (P)
Before Subsequent to
Misstatements Misstatements Misstatements % Change
Total Assets & Deferred Outflows 128,752,362 128,752,362
Total Liabilities & Deferred Inflows (16,609,293)(16,609,293)
Total Fund Balance (112,143,069)(112,143,069)
Revenues (61,984,058) (475,128) (62,459,186)0.77%
Expenditures 55,445,316 (1,425,549) 54,019,767 -2.57%
Change in Fund Balance (7,307,408) (1,900,677) (9,208,085)26.01%
CITY OF COLLEGE STATION TEXAS
ATTACHMENT
This analysis and the attached "Schedule of Uncorrected Misstatements (Adjustments Passed)" reflects the effects on the
financial statements if the uncorrected misstatements identified were corrected.
Aggregate Remaining Funds
QUANTITATIVE ANALYSIS
Aggregate Remaining FundsSCHEDULE OF UNCORRECTED MISSTATEMENTS (ADJUSTMENTS PASSED)Assets & Deferred OutflowsLiabilities & Deferred InflowsChange in Fund BalanceFundBalanceDescriptionFinancial Statement Line ItemDR (CR)DR (CR)DR (CR)DR (CR)DR (CR)DR (CR)DR (CR)To record community development loans receivable balances as deferred inflow of resources as of the beginning of the year.F0 0 (475,128) (1,425,549) 1,900,677 0 0 Beginning fund balance1,900,677 0 General government expense(1,425,549)Intergovernmental revenue(475,128)Total passed adjustments0 0 (475,128) (1,425,549) 1,900,677 0 0Impact on Change in Fund Balance(1,900,677)Impact on Fund Balance 0Client: CITY OF COLLEGE STATION TEXASPeriod Ending: September 30, 2018RevenuesExpendituresFund BalanceNet Effect on Following YearFactual (F), Judgmental (J), Projected (P)
Before Subsequent to
Misstatements Misstatements Misstatements % Change
Total Assets & Deferred Outflows 537,719,976 537,719,976
Total Liabilities & Deferred Inflows (186,884,221)(186,884,221)
Total Net Position (350,835,755)(350,835,755)
General Revenues & Transfers 13,100,000 13,100,000
Net Program Revenues/ Expenses (47,828,188) (246,064) (48,074,252)0.51%
Change in Net Position (34,728,188) (246,064) (34,974,252)0.71%
CITY OF COLLEGE STATION TEXAS
ATTACHMENT
This analysis and the attached "Schedule of Uncorrected Misstatements (Adjustments Passed)" reflects the effects on the financial
statements if the uncorrected misstatements identified were corrected.
Business Type Activities (Government-Wide Statements)
QUANTITATIVE ANALYSIS
Governmental Activities (Government-Wide Statements)SCHEDULE OF UNCORRECTED MISSTATEMENTS (ADJUSTMENTS PASSED)Assets LiabilitiesGeneral Revenues & TransfersNet Program Revenues/ Expenses Net PositionChange in Net PositionNet PositionDescription Financial Statement Line ItemDR (CR)DR (CR)DR (CR)DR (CR)DR (CR)DR (CR)DR (CR)Turnaround effect of prior year passed adjustment to record accumulated depreciation for WF1369909.F0 0 0 (246,064) 246,064 0 0 Beginning Net Position246,064Depreciation expense(246,064)Total passed adjustments000(246,064)246,06400Impact on Change in Net Position(246,064)Impact on Net Position0Client: CITY OF COLLEGE STATION TEXASPeriod Ending: September 30, 2018Net Effect on Following YearFactual (F), Judgmental (J), Projected (P)
Before Subsequent to
Misstatements Misstatements Misstatements % Change
Current Assets 16,669,853 16,669,853
Non-Current Assets & Deferred Outflows 141,576,093 141,576,093
Current Liabilities (6,823,256) (6,823,256)
Non-Current Liabilities & Deferred Inflows (50,666,366) (50,666,366)
Current Ratio 2.443 2.443
Total Assets & Deferred Outflows 158,245,946 158,245,946
Total Liabilities & Deferred Inflows (57,489,622) (57,489,622)
Total Net Position (100,756,324) (100,756,324)
Operating Revenues (16,279,473) (16,279,473)
Operating Expenses 11,162,261 (246,064) 10,916,197 -2.20%
Nonoperating (Revenues) Exp 598,483 598,483
Change in Net Position (4,518,739) (246,064) (4,764,803) 5.45%
CITY OF COLLEGE STATION TEXAS
ATTACHMENT
This analysis and the attached "Schedule of Uncorrected Misstatements (Adjustments Passed)" reflects the effects on the financial
statements if the uncorrected misstatements identified were corrected.
Water Fund
QUANTITATIVE ANALYSIS
Water FundSCHEDULE OF UNCORRECTED MISSTATEMENTS (ADJUSTMENTS PASSED)CurrentNon-CurrentCurrentNon-CurrentOperating RevenuesOperating ExpensesNonoperating (Revenues) ExpNet PositionChange in Net PositionNet PositionDescription Financial Statement Line ItemDR (CR) DR (CR) DR (CR) DR (CR) DR (CR) DR (CR) DR (CR) DR (CR) DR (CR) DR (CR)Turnaround effect of prior year passed adjustment to record accumulated depreciation for WF1369909F0 0 0 0 0 (246,064) 0 246,064 0 0 Beginning Net Position246,064Depreciation expense(246,064)Total passed adjustments0 0 0 0 0 (246,064) 0 246,064 0 0Impact on Change in Net Position (246,064)Impact on Net Position 0Client: CITY OF COLLEGE STATION TEXASPeriod Ending: September 30, 2018Assets & Deferred OutflowsLiabilities & Deferred InflowsNet Effect on Following YearFactual (F), Judgmental (J), Projected (P)
City of College Station, Texas
Single Audit Reports
September 30, 2018
DRAFT
City of College Station, Texas
September 30, 2018
Contents
Schedule of Expenditures of Federal Awards ..................................................................... 1
Notes to the Schedule of Expenditures of Federal Awards ............................................... 2
Report on Internal Control Over Financial Reporting and on Compliance
and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards –
Independent Auditor’s Report ........................................................................................... 3
Report on Compliance for the Major Federal Program; Report on Internal
Control Over Compliance; and Report on Schedule of Expenditures of Federal
Awards Required by the Uniform Guidance – Independent Auditor’s Report .............. 5
Schedule of Findings and Questioned Costs ...................................................................... 8
Summary Schedule of Prior Audit Findings ...................................................................... 11
DRAFT
City of College Station, Texas
Schedule of Expenditures of Federal Awards
Year Ended September 30, 2018
The accompanying notes are an integral part of this Schedule. 1
Federal CFDA Pass-Through Entity Passed Through Total Federal
Number Identifying Number to Subrecipients Expenditures
U.S. Department of Homeland Security:
Direct Programs
State Homeland Security Program - Swat Night Vision Phase II 97.067 -$ 15,140$
State Homeland Security Program - Rapid Response Packs 97.067 - 14,109
- 29,249
Assistance to FireFighters Grant Program 2014 97.044 - 163,160
Total U.S. Department of Homeland Security - 192,409
U.S. Department of Justice:
Passed through from City of Bryan, Texas
Edward Byrne Memorial Justice Assistance Grant Program 201 16.738 2016-DJ-BX-0271 - 2,491
Total U.S. Department of Justice - 2,491
U.S. Department of Housing and Urban Development:
Direct Programs
CDBG - Entitlement Grants Cluster:
Community Development Block Grant 2014 14.218 - 6,296
Community Development Block Grant 2015 14.218 24,959 113,035
Community Development Block Grant 2016 14.218 - 148,474
Community Development Block Grant 2017 14.218 123,777 454,051
Total CDBG - Entitlement Grants Cluster 148,736 721,856
HOME Investment Partnerships 2013 14.239 - 5,536
HOME Investment Partnerships 2014 14.239 - 52,984
HOME Investment Partnerships 2015 14.239 - 170,881
HOME Investment Partnerships 2016 14.239 - 269,680
HOME Investment Partnerships 2017 14.239 - 80,279
HOME Investment Partnerships 2018 14.239 - 309
- 579,669
Total U.S. Department of Housing & Urban Development 148,736 1,301,525
Total Expenditures of Federal Awards 148,736$ 1,496,425$
Federal Grantor/Pass-Through
Grantor/Program or Cluster Title
DRAFT
City of College Station, Texas
Notes to the Schedule of Expenditures of Federal Awards
Year Ended September 30, 2018
2
Notes to Schedule
1. The accompanying schedule of expenditures of federal awards (Schedule) includes the federal
award activity of the City of College Station, Texas (City) under programs of the federal
government for the year ended September 30, 2018. The information in this Schedule is
presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part
200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the
operations of the City, it is not intended to and does not present the financial position, changes in
net position or cash flows of the City.
2. Expenditures reported on the Schedule are reported on the cash basis which is a comprehensive
basis of accounting other than accounting principles generally accepted in the United States.
Expenditures of federal awards are reported in the City’s basic financial statements on the accrual
basis. Such expenditures are recognized following the cost principles contained in the Uniform
Guidance, wherein certain types of expenditures are not allowable or are limited as to
reimbursement. The City has elected not to use the 10 percent de minimis indirect cost rate
allowed under the Uniform Guidance.
3. The federal loan programs listed subsequently are administered directly by the City and balances
and transactions relating to these programs are included in the City’s basic financial statements.
Loans outstanding at the beginning of the year are not included in the federal expenditures
presented in the schedule, since there are not continuing compliance requirements other than
required loan payments. New loans made during the year are included in the federal expenditures
presented in the Schedule. The balance of the loans outstanding at September 30, 2018, consists
of:
CFDA Number Program Name
Outstanding
Balance at
September 30,
2018
14.239 HOME Investment Partnerships Program 1,960,079$
DRAFT
Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an
Audit of Financial Statements Performed in Accordance with
Government Auditing Standards
Independent Auditor’s Report
The Mayor and City Council
City of College Station, Texas
We have audited, 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, the financial statements of the governmental
activities, the business-type activities, the discretely presented component unit, each major fund and the
aggregate remaining fund information of the City of College Station, Texas (City), as of and for the year
ended September 30, 2018, and the related notes to the financial statements, which collectively comprise
the City’s basic financial statements, and have issued our report thereon dated March __, 2019, which
contained a reference to other auditors and emphasis of matter paragraphs regarding a change in
accounting principle and a prior period restatement. The financial statements of Brazos Valley Solid
Waste Management Agency (BVSWMA), a joint venture between the City of College Station and City of
Bryan and the financial statements of Experience BCS, the discretely presented component unit, were not
audited in accordance with Government Auditing Standards, and accordingly, this report does not include
reporting on internal control over financial reporting or instances of reportable noncompliance associated
with BVSWMA or Experience BCS.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control
over financial reporting (internal control) to determine the audit procedures that are appropriate in the
circumstances for the purpose of expressing our opinions on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do
not express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent or
detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination
of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement
of the entity’s financial statements will not be prevented or detected and corrected on a timely basis. A
significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less
severe than a material weakness, yet important enough to merit attention by those charged with
governance.DRAFT
The Mayor and City Council
City of College Station, Texas
Page 4
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies, and therefore, material weaknesses or significant deficiencies may
exist that have not been identified. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. We did identify a certain
deficiency in internal control, described in the accompanying schedule of findings and questioned costs as
item 2018-0001, that we consider to be a significant deficiency.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free of
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts and grant agreements, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
City's Response to the Finding
The City's response to the finding identified in our audit is described in the accompanying schedule of
findings and questioned costs. The City’s response was not subjected to the auditing procedures applied
in the audit of the financial statements, and accordingly, we express no opinion on it.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the entity’s internal control and compliance.
Accordingly, this communication is not suitable for any other purpose.
March __, 2019 DRAFT
Report on Compliance for the Major Federal Program; Report on Internal Control
Over Compliance; and Report on Schedule of Expenditures of Federal Awards
Required by the Uniform Guidance
Independent Auditor’s Report
The Mayor and City Council
City of College Station, Texas
Report on Compliance for the Major Federal Program
We have audited the City of College Station, Texas’ (City) compliance with the types of compliance
requirements described in the OMB Compliance Supplement that could have a direct and material effect
on the City’s major federal program for the year ended September 30, 2018. The City’s major federal
program is identified in the summary of auditor’s results section of the accompanying schedule of
findings and questioned costs.
Management’s Responsibility
Management is responsible for compliance with federal statutes, regulations and the terms and conditions
of its federal awards applicable to its federal program.
Auditor’s Responsibility
Our responsibility is to express an opinion on compliance for the City’s major federal program based on
our audit of the types of compliance requirements referred to above. We conducted our audit of
compliance in accordance with auditing standards generally accepted in the United States of America; the
standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal
Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Awards (Uniform Guidance). Those standards and Uniform Guidance require that we plan and
perform the audit to obtain reasonable assurance about whether noncompliance with the types of
compliance requirements referred to above that could have a direct and material effect on a major federal
program occurred. An audit includes examining, on a test basis, evidence about the City’s compliance
with those requirements and performing such other procedures as we considered necessary in the
circumstances.
DRAFT
The Honorable Mayor and Members of the City Council
City of College Station, Texas
Page 6
We believe that our audit provides a reasonable basis for our opinion on compliance for the major federal
program. However, our audit does not provide a legal determination of the City’s compliance.
Opinion on the Major Federal Program
In our opinion, the City complied, in all material respects, with the types of compliance requirements
referred to above that could have a direct and material effect on the major federal program for the year
ended September 30, 2018.
Report on Internal Control Over Compliance
Management of the City is responsible for establishing and maintaining effective internal control over
compliance with the types of compliance requirements referred to above. In planning and performing our
audit of compliance, we considered the City’s internal control over compliance with the types of
requirements that could have a direct and material effect on the major federal program to determine the
auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on
compliance for the major federal program and to test and report on internal control over compliance in
accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the
effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the
effectiveness of the City’s internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a
federal program on a timely basis. A material weakness in internal control over compliance is a
deficiency, or combination of deficiencies, in internal control over compliance such that there is a
reasonable possibility that material noncompliance with a type of compliance requirement of a federal
program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in
internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over
compliance with a type of compliance requirement of a federal program that is less severe than a material
weakness in internal control over compliance, yet important enough to merit attention by those charged
with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over
compliance that might be material weaknesses or significant deficiencies. We did not identify any
deficiencies in internal control over compliance that we consider to be material weaknesses. However,
material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements of the
Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
DRAFT
The Honorable Mayor and Members of the City Council
City of College Station, Texas
Page 7
Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance
We have audited the financial statements of the governmental activities, the business-type activities, the
discretely presented component unit, each major fund and the aggregate remaining fund information of
the City of College Station, Texas, as of and for the year ended September 30, 2018, and the related notes
to the financial statements, which collectively comprise City's basic financial statements. We issued our
report thereon dated March __, 2019, which contained an unmodified opinion on those financial
statements and a reference to other auditors and “Emphasis of Matter” paragraphs regarding a change in
accounting principle and a prior period restatement. Our audit was conducted for the purpose of forming
opinions on the financial statements that collectively comprise the basic financial statements. The
accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis
as required by the Uniform Guidance and is not a required part of the basic financial statements. Such
information is the responsibility of management and was derived from and relates directly to the
underlying accounting and other records used to prepare the basic financial statements. The information
has been subjected to the auditing procedures applied in the audit of the financial statements and certain
additional procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the 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 schedules of expenditures of federal awards
are fairly stated in all material respects in relation to the basic financial statements as a whole.
March __, 2019 DRAFT
City of College Station, Texas
Schedule of Findings and Questioned Costs
Year Ended September 30, 2018
8
Summary of Auditor’s Results
Financial Statements
1. The type of report the auditor issued on whether the financial statements audited were prepared in
accordance with accounting principles generally accepted in the United States of America (GAAP)
was:
Unmodified Qualified Adverse Disclaimer
2. The independent auditor’s report on internal control over financial reporting disclosed:
Significant deficiency(ies)? Yes None reported
Material weakness(es)? Yes No
3. Noncompliance considered material to the financial statements was disclosed by the audit?
Yes No
Federal Awards
4. The independent auditor’s report on internal control over compliance for the major federal awards
program disclosed:
Significant deficiency(ies)? Yes None reported
Material weakness(es)? Yes No
5. The opinion expressed in the independent auditor’s report on compliance for the major federal
awards program was:
Unmodified Qualified Adverse Disclaimer
6. The audit disclosed finding required to be reported by 2 CFR 200.516(a)?
Yes No DRAFT
City of College Station, Texas
Schedule of Findings and Questioned Costs (Continued)
Year Ended September 30, 2018
9
7. The City’s major federal program was:
Cluster/Program CFDA Number
CDBG - Entitlement Grants Cluster 14.218
8. The threshold used to distinguish between Type A and Type B programs was $750,000.
9. The City qualified as a low-risk auditee? Yes No DRAFT
City of College Station, Texas
Summary Schedule of Prior Audit Findings
Year Ended September 30, 2018
10
Findings Required to be Reported by Government Auditing Standards
Reference Number Finding
2018-0001 Restatement of Prior Year Financial Statements
Criteria or specific requirement: The City's internal controls should be
designed to prevent, or detect and correct, misstatements within the financial
statements in a timely basis.
Condition: The City's 2017 financial statements understated sales tax
receivable and incorrectly included fiduciary fund activity.
Effect: The City’s 2018 beginning net position and/or fund balance were
restated to conform to accounting principles generally accepted in the United
States (GAAP).
Cause: The City’s year end reconciliation and financial statement review
processes were not sufficient to identify errors in the financial statements.
Recommendation: We recommend that management strengthen its internal
controls over year end reconciliations and financial statement reviews to
ensure balances are reported in accordance with GAAP.
Views of responsible officials and planned corrective actions: We agree that
management strengthen its internal controls over year end reconciliations and
financial statement reviews to ensure balances are reported in accordance with
GAAP. Significant personnel changes in the Finance Department have led to
multiple changes in the reconciliation and review processes. The City is
focused on hiring and retaining well qualified personnel. As new personnel
are hired and trained, the processes should stabilize and improve in the
reconciliation and review area.
Findings Required to be Reported by the Uniform Guidance
Reference Number Finding
No matters are reportable. DRAFT
City of College Station, Texas
Summary Schedule of Prior Audit Findings (Continued)
Year Ended September 30, 2018
11
Reference
Number Summary of Finding Status
2017-01 Community Development Block Grant (CDBG)
CFDA 14.218
U.S. Department of Housing and Urban Development
Award No. B-16-MC-48-0007; B07-MC-48-0007 (local account)
Grant Period – 10/01/16 – 09/30/17, 10/01/07 – 09/30/08
(local account)
Resolved
Criteria or specific requirement – When CDBG funds are used for
construction contracts in excess of $2,000, the contract becomes
subject to the Wage Rate Requirements. This includes a
requirement for the contractor or subcontractor to submit to the
non-Federal entity weekly, for each week in which any contract
work is performed, a copy of the payroll and a statement of
compliance (certified payrolls). This must be completed within
seven days after the regular pay date for the pay period.
Condition – During review of this compliance requirement, it was
noted that the City did not obtain certified payrolls for all weeks in
which construction occurred on the 2016 CDBG Sidewalk project.
Certified payrolls were obtained through April 26, 2017; however,
additional work was completed after this date and certified payrolls
were not obtained by the City.
Questioned costs – This finding did not result in any questioned costs.
Context – We tested three projects which were subject to the Wage
Rate Requirements under the Special Tests and Provisions. Two of
the projects appear to be in compliance with requirements noted
above. The 2016 CDBG Sidewalk Project was not in compliance.
Effect – Failure to comply with the applicable grant requirements
could result in termination of the grant and repayment of grant
funds.
Cause – The City’s Public Works department was managing the 2016
CDBG Sidewalk Project and did not inform the Community
Development department that additional work had been performed
after April 26, 2017.
DRAFT
FRAUD RESPONSE PLAN: General Policy
1. INTRODUCTION
1.1. The City of College Station, henceforth “the City”, is committed to high legal, ethical and moral
standards. The City Council promotes a risk aware culture and expects all staff to share in this
responsibility. Fraud is an ever-present threat and hence must be a concern to all members of staff. The
City of College Station views fraud as an extremely serious matter and is committed to the promotion of
an anti-fraud culture throughout the organization.
1.2. This document is intended to provide: direction and advice to those who find themselves dealing
with suspected cases of theft, fraud or corruption; a framework for fraud response; and information on
various aspects and implications of an investigation. It is not intended to offer direction on the
prevention of fraud.
1.3. This document applies to any irregularity, or suspected irregularity, involving employees,
consultants, vendors, contractors, or any other parties having a business relationship with the City. Any
investigative activity will be conducted without regard to any person’s relationship to the City, position,
or length of service. All managers and supervisors have a duty to be familiar with and alert for the types
of improprieties that might be expected to occur within their areas of responsibility.
2. DEFINITIONS
2.1. Fraud is defined as dishonestly obtaining an advantage, avoiding an obligation or causing a loss to
another party. The criminal act of fraud is the intent to deceive; therefore, attempted fraud is treated as
seriously as accomplished fraud. The term “fraud” commonly includes activities such as theft,
corruption, conspiracy, embezzlement, deception, bribery and extortion. Some illustrations of incidents
which would be classified as fraud are contained in Appendix A. Fraud may involve:
(i) manipulation, falsification or alteration of records or documents;
(ii) suppression or omission of the effects of transactions from records or documents;
(iii) recording of transactions without substance;
(iv) misappropriation (theft) or willful destruction or loss of assets; and
(v) deliberate misapplication of accounting policies or other regulations.
2.2. Computer fraud is defined as the material misuse of information technology equipment in the
perpetration of fraud, including but not limited to:
(i) manipulating programs or data dishonestly;
(ii) altering, substituting, or destroying records;
(iii) creating spurious records; or
(iv) misusing computer time and resources.
2.3. An irregularity may be defined as any incident or action which is not part of the normal operation of
the system or the expected course of events.
2.4. An initial inquiry into a suspected fraud is defined as an examination of the available facts of the
incident to ascertain the likelihood that the criminal act of fraud may have taken place. Internal auditors
will use Generally Accepting Government Auditing standards when conducted these inquiries.
2.5. A fraud investigation is defined as the collection of evidence admissible in a court of law to
determine whether the criminal act of fraud has taken place.
3. PURPOSE OF THE FRAUD RESPONSE PLAN
3.1. The purpose of the Fraud Response Plan, henceforth “the Plan,” is to ensure that effective and
timely action is taken in the event of a fraud. The Plan aims to minimize losses and increase the chances
of a successful investigation.
3.2. The Plan defines authority levels, responsibilities for action, and reporting lines in the event of a
suspected fraud or irregularity. It acts as a checklist of actions and a guide to follow if fraud is suspected.
The Plan is designed to:
(i) prevent further loss;
(ii) establish and secure evidence necessary for criminal, civil and disciplinary action;
(iii) determine when to contact the Police Department and establish lines of communication;
(iv) assign responsibility for investigating the incident;
(v) minimize and recover losses;
(vi) review the reasons for the incident, the measures taken to prevent a recurrence, and
determine any action needed to strengthen future responses to fraud.
4. RESPONSIBILITIES
4.1. The City must undertake fraud investigations when there is suspected fraud and take the
appropriate legal and disciplinary action. Whether there is suspected or proven fraud, the City should
make any necessary changes to systems and procedures to prevent similar frauds from occurring in the
future. The City should establish systems for recording and subsequently monitoring all discovered cases
of proven or suspected fraud.
4.2. Overall, managing the risk of fraud is the responsibility of the Audit Committee, Management Team,
and the City Internal Auditor. The City Management Team, comprised of the City Manager and
Department Directors, is responsible for establishing and maintaining a sound system of internal
controls that supports the achievement of City policies, aims and objectives. This system of internal
controls should be designed to respond to and manage the whole range of risks that the City faces,
including fraud risk. The City Attorney is responsible for ensuring appropriate action has been made to
recover assets.
4.3. Responsibility for exercising disciplinary actions rests with the Director of Human Resources,
although this should be done in consultation with the City Manager’s Office and other Department
Directors where appropriate.
4.4. The City’s governance body (City Council and the Audit Committee) is responsible for promoting an
anti-fraud culture by:
promoting an anti-fraud culture recognized by all City staff;
ensuring that vigorous and prompt investigations are carried out if fraud occurs or is suspected;
establishing appropriate mechanisms for reporting fraud risk issues;
confirming that appropriate action is taken to minimize the risk of similar frauds occurring in the
future.
4.5. Department Directors are responsible for:
making sure that all staff are aware of their responsibilities in relation to combating fraud
through anti-fraud training and development opportunities;
assessing the types of risk involved in the operations for which they are responsible;
designing an effective system of controls to prevent fraud within their areas of responsibility;
implementing new controls to reduce the risk of similar fraud occurring where frauds have
taken place;
taking appropriate disciplinary action against supervisors where supervisory failures have
contributed to the commission of fraud.
4.6. The City Internal Auditor is responsible for:
delivering an opinion to the Audit Committee on the adequacy of the control system managing
fraud risk;
assisting in the prevention of fraud by evaluating the effectiveness of controls commensurate
with the potential risk in City’s operations;
examining fraud indicators and allegations, and conducting preliminary internal inquiries to
confirm or negate, as far as possible, the suspicions that have arisen;
maintaining documentation of all reported suspicions, including those dismissed as minor or
otherwise not investigated;
identifying any system weakness and prescribing internal control improvements to prevent a
recurrence;
reporting to the Audit Committee the results of all fraud related inquiries.
4.7. Every member of staff is responsible for:
acting responsibly when using City resources and funds whether they are involved with cash,
payment systems, receipts, suppliers, or customers.
being aware that unusual events or transactions could be indicators of fraud;
reporting details immediately through the appropriate channel if a fraud or any suspicious acts
are recognized;
cooperating fully with whoever is conducting internal assessments or fraud investigations.
5. FRAUD DETECTION
5.1. Fraud may be highlighted as a result of specific management assessments or be brought to
management's attention by a third party; Department Directors should be alert to the possibility that
unusual events or transactions could be symptoms of fraud or attempted fraud.
5.2. The City has established an Ethics Hotline and a strict non‐retaliation policy to encourage and
protect employees who report ethics violations and to promote a culture of legal and regulatory
compliance. The Ethics Hotline is monitored by the City Internal Audit Office and provides a process for
reporting potential violations of laws, regulations, policies or procedures in a manner that protects the
reporter’s identity to the extent allowed by law. Additionally, irregularities may come to light over the
course of audit reviews.
5.3. When any member of staff suspects that a fraud has occurred, the City Internal Auditor or
appropriate Department Director should be notified immediately. If verbally notified of a possible fraud,
a Department Director must immediately contact the City Internal Auditor. The City Internal Auditor will
inform the City Manager of allegations where the loss is potentially significant or where the incident
may lead to adverse publicity.
6. INITIAL INQUIRY
6.1. Within 24 hours of becoming aware of suspected fraud, a preliminary internal inquiry will be
undertaken by the City Internal Audit Office in conjunction with the City Attorney’s Office to determine
the facts and ascertain the likelihood of a criminal act. The purpose of the initial inquiry is to confirm or
negate, as far as possible, the suspicions that have arisen so that, if necessary, an investigation may be
initiated.
6.2. Potential fraud will be examined by Internal Auditors to determine whether a genuine mistake has
been made or an irregularity has occurred. Preliminary examination may involve discreet inquiries with
staff or the review of documents. It is important for staff to be clear that any irregularity of this type,
however apparently innocent, will be analyzed.
6.3. Internal auditors must be conscious that internal disciplinary action and criminal prosecution may
result from the initial inquiry. To prevent the loss of evidence, the City Internal Audit Office will conduct
the initial internal inquiry under the assumption that it will lead to a fraud investigation. Therefore, the
utmost care is required from the outset—specifically when conducting interviews. Internal auditors
should be aware of concerned staff members’ legal rights in certain situations such as the right to
representation or the right to remain silent.
6.4. Where a member of staff is to be interviewed, the individual heading the inquiry or investigation
will consult with, and take advice from, the Director of Human Resources. The Department Director will
also be notified when doing so will not impede an ongoing inquiry or investigation. The Human
Resources Director will advise those involved in matters of employment law, City policy and other
procedural matters (such as disciplinary or complaints procedures) as necessary.
6.5. Auditors should avoid steps in the examination that could hamper a future fraud investigation.
There may, however, be instances where auditors collect potential evidence. When evidence is obtained
during the preliminary inquiry, auditors should:
take steps to ensure that all original evidence is secured as soon as possible;
be able to account for the security of the evidence at all times, including keeping a record of its
movement and signatures of all persons to whom the evidence has been transferred. For this
purpose all items of evidence should be individually numbered and descriptively labeled;
not alter or amend the evidence in any way;
ensure evidence obtained from electronic devices is only handled by certified specialists;
document when auditors came into possession of the evidence.
6.6. In order to protect the City from further loss and destruction of evidence, it may be necessary to
suspend the concerned staff member immediately following the preliminary inquiry conducted by the
City Internal Audit Office. Specific advice should be sought from Human Resources before proceeding.
7. INVESTIGATION
7.1. Where the preliminary inquiry points to the likelihood of a criminal act having taken place, the City
Attorney’s Office and the Police Department will be contacted at once. The advice of the City Attorney’s
Office and the Police Department will be followed in taking forward the investigation. With the
recommendation from the City Attorney, Chief of Police, City Manager, and City Internal Auditor an
outside investigator with specific expertise may be hired to assist in the fraud investigation.
7.2. When an outside investigator is hired, they will be employed through the City Internal Audit Office.
The Police Department will handle fraud investigations that are not led by an outside investigator.
7.3. The recovery of losses should be a major objective of any fraud investigation. To this end the
quantification of losses is important. Repayment of losses should be sought in all cases. Where
necessary, external advisors can be involved or legal advice should be sought on the most effective
method to secure recovery of losses.
8. REPORTING
8.1. The City Manager, City Attorney, Police Chief, and City Internal Auditor will be kept informed
throughout an inquiry and proceeding investigation, unless they have been implicated. Significant
matters will be reported to the City Council as soon as practical.
8.2. At the completion of the examination, the City Internal Audit Office will prepare a summary report
on the outcome and lessons learned from the results of any potential fraud inquiry or investigation using
Generally Accepted Government Auditing Standards. This report will be circulated when appropriate to
all other interested parties. Where a fraud has occurred, management must make any necessary
changes to systems and procedures to ensure that similar frauds will not recur.
8.3. The City Internal Audit Office will maintain documentation of all reported suspicions, including
those dismissed as minor or otherwise not investigated. This documentation will contain details of
actions taken and conclusions reached and will be presented to the Audit Committee for inspection
annually.
9. FURTHER ACTION
9.1. After proper investigation, the City will take legal and disciplinary action in all cases where it is
considered appropriate. There will be consistent handling of cases without regard to the perpetrator’s
position or length of service.
9.2. Where an inquiry involves a member of staff and it is determined that no criminal act has taken
place, the City Internal Auditor will coordinate with the Director of Human Resources and the
appropriate Department Director to determine which of the following has occurred and therefore
whether disciplinary action is appropriate:
gross misconduct or acting dishonestly (but not criminally);
intent to commit a criminal act (without the act being executed);
negligence or error of judgment was seen to be exercised; or
nothing occurred and therefore no action is needed.
9.3. The investigation or initial inquiry will also consider whether there has been any failure of
supervision. Where this has occurred, appropriate disciplinary action will be taken against those
responsible for this failure.
9.4. Where, after having sought the advice of the City Attorney’s Office, the City Manager judges it cost
effective to do so, the City will pursue civil action in order to recover any losses. The case will be
referred to the City Attorney’s Office for action.
APPENDIX A: Where Fraud Can Occur
1.1. Fraud can happen wherever staff, partnering organizations or independent contractors complete
official documentation and can take financial advantage of the City. The risk of fraud is enhanced where
staff or contractors are in positions of trust or responsibility and are not checked or subjected to
effective monitoring. Consequently, the following areas are particularly susceptible to fraud:
claims from partnering organization or independent contractors for payment;
contracts;
travel and expense claims;
cash receipts or petty cash;
payroll;
ordering (for example, unauthorized order or falsification of order);
assets (especially, portable/attractive/valuable items).
1.2. Examples of Fraud
1.2.1. Claims for items or service payments:
claims for services not performed;
claims for a higher level of service than that performed;
duplicate claim for service previously paid for.
1.2.2. Contracts:
falsified contractual claims for delays in contract work;
irregularities in tendering;
claims for work not performed;
bogus invoices submitted.
1.2.3. Travel claims:
false travel claims;
mileages inflated;
unnecessary travel taken;
2 employees claim for a journey taken together;
rental of car not used for official purposes.
1.2.4. Expense claims:
false or inflated claims made;
excessive or inappropriate expense claims.
1.2.5. Cash receipts:
accepting cash without receipting or declaring it;
altering documentation to disguise the theft of cash.
1.2.6. Petty cash:
reimbursement sought for receipted but inappropriate expenditure;
vouchers or receipts submitted with no expenditure made;
borrowing from fund.
1.2.7. Payroll:
erroneous or “ghost” employees introduced onto the payroll
a terminated employee not being taken off the payroll, and the salary payment being diverted
to the perpetrator;
hours worked over-stated to take advantage of flex-time or over-time arrangements;
claims for work not performed;
receiving payment from another organization during normal working hours, when paid by the
City.
1.2.8. Ordering:
goods or services ordered for personal use or from a specific supplier in return for some form of
benefit;
goods or services ordered from a relative’s or friend’s business avoiding proper bidding;
accepting a lower number of items than ordered, but certifying an invoice for the accurate
number;
creating or certifying false invoices, for which no order has been raised.
1.2.9. Assets:
misuse, theft and fraud of assets not controlled properly;
the use of City assets for an individual’s personal reasons, e.g. personal computer, mobile
phone, vehicle, or equipment.
These examples do not represent a comprehensive list of potential frauds but can be used as an
illustration.
APPENDIX B: Fraud Response Process Narrative
Fraud Response Process
1. A potentially fraudulent act is reported to the City Internal Audit Office.
2. Does the allegation implicate the City Manager? Yes: Proceed to step 4.
3. No: The City Internal Auditor notifies the City Manager of the allegation and discusses the action
plan.
4. The City Internal Auditor initiates a preliminary internal inquiry to determine the facts.
5. The City Internal Auditor consults with the City Attorney’s Office throughout the investigation
about the likelihood of a criminal act.
6. Is it likely that a criminal act has taken place? No: Proceed to step 16.
7. Yes: The City Internal Auditor and City Attorney’s Office immediately contact the Police Chief.
The City Attorney, Police Chief, City Manager, and City Auditor meet to discuss the next steps in
the process.
8. Is an Outside Investigator with specific expertise hired?
9. No: The Police Chief oversees the investigation to its completion. Proceed to step 11.
10. Yes: An Outside Investigator is hired by the City Internal Audit Office.
11. Once the investigation is complete the results are reported to the City Internal Audit Office.
12. Results of the investigation are reported to the City Manager’s Office, the Audit Committee, and
other concerned parties.
13. The City Manager’s Office, with input from the City Attorney’s Office, reviews the results of the
investigation and considers the effects of pursuing civil action.
14. Is civil action against the perpetrator pursued? No: Proceed to step 16.
15. Yes: The City Attorney’s Office pursues legal action against the perpetrator(s). Proceed to step
16.
16. The City Auditor consults with the Human Resources Director and the appropriate Department
Director to determine whether disciplinary action is appropriate.
17. Should disciplinary action be taken against any involved staff? No: Proceed to step 19.
18. Yes: Department Director and Human Resources implement disciplinary action.
19. The City Internal Audit Office maintains documentation of all reported suspicions.
20. Annually, the City Internal Auditor’s Office reports all incidents of potential fraud, including
those dismissed or otherwise not investigated, to the City Audit Committee. This documentation
includes actions taken and conclusions reached and complies with Government Auditing
Standards.
City Attorney
pursues legal
action
CAE, PD, CAO, &
CMO assess next
steps of fraud
investigation
CAE discusses
action plan with
CMO
CMO
implicated?
CAE conducts
initial inquiry
CAO and CAE
assess likelihood of
criminal act
No
Yes
Crime
Occurred?
Hire outside
investigator?
Outside
investigator
completes fraud
investigation
Police
Department
completes fraud
investigation CAE and CMO
reviews the results
of the fraud
investigation
Audit Committee
reviews the results
of the fraud
investigation
Pursue civil
action?
Yes
No
Yes
HR, Dept. Dir., &
CMO consider
disciplinary action
No
HR implements
disciplinary action
Disciplinary
action taken?
CAE maintains
documentation of
all incidents
Yes
No Audit Committee
reviews all incidents
of potential fraud
No Yes
Potential fraud
identified
5
4
3
2
1
6
7
9
10
8 11 12
13
15 14
16
17
18 19
Fraud Response Flow Chart a Key a
Chief Audit Executive (CAE)
City Manager s Office (CMO)
City Attorney s Office (CAO)
Police Department (PD)
Human Resources (HR)
TY ELLIOTT CITY INTERNAL AUDITOR’S OFFICE AUDIT COMMITTEE
City Internal Auditor 1101 Texas Ave. Mayor Karl Mooney
telliott@cstx.gov College Station, TX 77840 Councilmember James Benham
TEL: (979) 764-6269 Councilmember Linda Harvell
Mike Ashfield (Advisory)
Nathan Sharp (Advisory)
TO: Honorable Mayor and City Council
FROM: Ty Elliott, City Internal Auditor
DATE: September 25, 2018
SUBJECT: Fiscal Year 2019 Potential Audit Plan
During fiscal year 2018, our Office received permission from the Audit Committee to design and
implement a continuous auditing program and to develop and finalize a Fraud Response Plan. In
addition, towards the end of fiscal year 2019, we will need to update the COSO Matrix and process
documentation. Despite these prior commitments, we believe we have enough resources to conduct
one small scope audit during FY19 – most likely during October.
A description of each potential audit topic follows:
Performance Evaluations: Over the course of the FY17 Risk Assessment and the COSO Assessment, we
found that Employee Performance Evaluations differ greatly across City departments and divisions. An
audit of this topic would focus on identifying where employees are treated differently across the City
and evaluating if this is reasonable.
City-wide User Access: Based on the COSO Assessment, an analysis of City-wide user access of key
systems may be warranted. An audit of this topic will involve reviewing user access policies and
procedures, and identifying and analyzing user access to key systems.
Software Acquisition and Use: An audit of software acquisition and use would investigate software used
throughout the City and the associated licenses, as well as, software acquisition policies and procedures.
Parkland Dedication: Since our Office was formed in 2007, we have conducted two audits of the Parks
and Recreation Department, however, both were focused on the recreation side. An audit of the
Parkland Dedication program would focus on compliance with City ordinances as well as efficient and
effective achievement of the program’s mission, goals, and objectives.
Financial Indicators: This would entail examining the Comprehensive Annual Financial Report and other
financial documents and is intended to: 1) identify significant existing or emerging financial problems, 2)
put the City’s finances in context, and 3) encourage discussion of City finances.
Commodity Purchases: A previous audit of purchasing processes was conducted in 2008 with a follow-
up in 2010; however, these audits did not specifically address purchasing processes involving
commodities – or raw materials that the City buys and stores in bulk. An audit of commodity purchases
would include a review of policies, procedures, processes and practices.
City of College Station City Internal Auditor’s Office
2 | P a g e
Vendor Database: Based on the COSO Assessment, an in-depth analysis of the City’s Vendor Database
may be needed. This includes areas such as vendor performance, inappropriate vendor-employee
relationships, and database controls and access.
Payroll Aspect Audit: An audit of a specific payroll aspect would involve review and testing over internal
controls as well as analysis. Specific payroll aspects that could be covered include: Fire and Police Move-
Up Pays, Short-Term Disability Payments, a specific Fringe Benefit (i.e. cell phone allowance, car
allowance, etc.), or a specific department’s overtime usage (i.e. Fire, Police, Public Works overtime,
etc.). The aspects of payroll identified as risks during the COSO Assessment include Move-Up Pays and
Short-Term Disability Payments.
Police Evidence Disposal: An audit of Police Evidence was begun during fiscal year 2016, but was never
completed. Based on this previously completed work, an audit of Police Evidence disposal would
evaluate the City’s current evidence disposal policies and procedures and their effectiveness.
Based on this, a potential audit schedule would be as follows:
Figure 1: Potential FY19 Schedule
Sincerely,
Ty L Elliott
CIA, CFE, CGAP, COSO
City Internal Auditor
10/1/2018 12/31/2018 4/1/2019 7/1/2019 9/30/2019
Potential Audit
Fraud Response Plan
Continuous Auditing Implementation
COSO Update
Parkland Dedication Audit
March 2019
City Internal Auditor’s Office
City of College Station
File#: 19-02
Audit Executive Summary:
Parkland Dedication Why We Did This Audit
This audit was conducted per direction of
the Audit Committee. The City acquires
significant land dedications and collects
substantial parkland dedication fees on
an annual basis due to its parkland
dedication ordinance.
What We Recommended
Modify the parkland dedication
ordinance so that dedication
requirements for multifamily
developments are proportional to the
fee-in-lieu of dedication.
Reduce the number of park zones to
the fewest number of zones feasible
according to legal requirements.
Modify or eliminate the discounts
built into the park development fee.
Develop a more elegant parkland
dedication methodology. Any changes
made to the ordinance should seek to
simplify it instead of adding any
additional layers of complexity.
Require Parks and Recreation staff to
verify parkland dedication acres and
fees that have been collected by
Planning and Development staff.
Consider engaging the Texas
Municipal League or other contract
partners to advocate on the City’s
behalf to modify Texas Local
Government Code 245.
What We Found
The City’s current parkland dedication requirements and
fee structure is complex. While some of this complexity
is the result of federal and state law, much of it is due to
competing political interests that have led to several
changes in the parkland dedication ordinance over the
past 10 years.
The most significant change occurred in 2008, which
resulted in an ordinance that imposed some of the
highest parkland dedication fees and land dedication
requirements in Texas. Subsequent City Councils have
modified the ordinance to shift or lesson the burden of
fees and land requirements. Although some City
Councils desired to increase parkland dedication
requirements and fees while others sought to reduce
them, most changes made since 2008 have resulted in
added layers of complexity.
As the parkland dedication ordinance has become more
complex, accurately and fairly accounting for the land
dedication, monies collected, and the funds expended
have become increasingly challenging for City staff. To
mitigate these risks, the City has implemented several
internal controls. Overall, these controls have been
effective, but they have come at the cost of increased
administrative burden to City staff, developers, and
appointed and elected governance bodies.
Perhaps the greatest consequence of the ordinance’s
complexity is the timely expenditure of parkland
dedication funds. As a result, the City’s population has
grown at a significantly higher rate than the rate
parkland has been added to the City. In addition, the
City risks being required to refund monies collected, but
how and to whom to refund may be problematic.
Parkland Dedication 1
Parkland Dedication Audit
Table of Contents
Introduction ................................................................................................................. 2
Audit Objectives ........................................................................................................ 2
Scope and Methodology ............................................................................................. 2
Parkland Dedication Background ................................................................................. 3
Findings and Analysis .................................................................................................... 6
The Parkland Dedication Ordinance is Complex ............................................................ 6
The City’s Requirements are More Complex than other Texas Cities ............................ 6
Multifamily Dedication Requirements Are Not Proportional to Fees-in-lieu .................... 8
Ordinance Changes Have Increased Parkland Dedication Complexity .......................... 9
Some Parkland Dedication Requirements May Merit Periodic Consideration ................ 10
Ordinance Complexity Has Impacted Internal Controls Costs .................................... 11
Timely Expenditure of Parkland Funds Has Been Challenging ....................................... 12
The City Has More Park Zones than Other Texas Cities ............................................ 12
New Parks Should Be Built Within a Reasonable Time Frame .................................... 13
Parkland Dedication Ordinance Complexity Hinders Spending ................................... 13
Recent Changes Have Aimed to Address Spending Difficulties .................................. 14
Parkland Dedication Fee Collection Is Challenging ....................................................... 16
Fee Assessment Systems Adequately Account for Collections ................................... 16
The Inaccuracies Identified are Not Material ........................................................... 17
Fee Assessment Is Complicated By Outside Factors ................................................. 18
Recommendations ................................................................................................... 20
Appendix A: Management’s Response .......................................................................... 22
Appendix B: Internal Control and Process Summary ...................................................... 24
2 Parkland Dedication
Introduction
The Office of the City Internal Auditor conducted this performance audit of the parkland
dedication program pursuant to Article II Section 30 of the College Station City Charter, which
outlines the City Internal Auditor’s primary duties.
A performance audit is an objective, systematic examination of evidence to assess
independently the performance of an organization, program, activity, or function. The purpose
of a performance audit is to provide information to improve public accountability and facilitate
decision-making. Performance audits encompass a wide variety of objectives, including those
related to assessing program effectiveness and results; economy and efficiency; internal control;
compliance with legal or other requirements; and objectives related to providing prospective
analyses, guidance, or summary information. A performance audit of the Parkland Dedication
program was included in the fiscal year 2019 audit plan based on direction given by the Audit
Committee.
Audit Objectives
This audit addresses the effectiveness of the City’s parkland dedication program and answers
the following questions:
How does the City of College Station’s parkland dedication program compare to best
practices and benchmark cities?
Do adequate controls exist to ensure parkland dedication fees are being collected
according to the ordinance?
Are parkland dedication contributions being spent effectively?
Scope and Methodology
We conducted this performance audit in accordance with generally accepted government
auditing standards. Those standards require that we plan and perform the audit to obtain
sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions
based on our audit objectives. We believe that the evidence obtained provides a reasonable
basis for our findings and conclusions based on our audit objectives. Audit fieldwork was
conducted from October 2018 through January 2019. The scope of review varied depending on
the analysis being performed. The methodology used to complete the audit objectives included:
Reviewing the work of auditors in other jurisdictions and researching professional literature
to identify: 1) parkland dedication best practices, and 2) general challenges facing parkland
dedication programs.
Parkland Dedication 3
Comparing applicable policies and procedures and relevant state and federal laws or
regulations to the current parkland dedication ordinance and parkland dedication program
practices.
Interviewing pertinent staff in the Parks and Recreation Department, Planning and
Development Services Department, and Fiscal Services Department.
Obtaining legal opinions on various parkland dedication related issues from the City
Attorney’s Office.
Examining historical parkland dedication ordinances and relevant City Council, Planning and
Zoning, and Parks and Recreation Advisory Board meetings and minutes.
Verifying the accuracy and completeness of parkland dedication payments and fees.
Examining the parkland dedication ordinances of similar jurisdictions and benchmarking
these jurisdictions’ parkland dedication programs to the City of College Station’s program.
Parkland Dedication Background
The City of College Station’s parkland dedication program originated in 1970 and was intended
to provide for the creation and development of recreational areas in the City in conjunction with
population growth. In 2008, this ordinance received an extensive update spearheaded by the
City Council. At the time of this ordinance change, the City had a population of approximately
91,000 with 587 acres of community and neighborhood parkland and 666 acres of regional
parkland.1 From 2008 to 2018, the City has added 107 acres of parkland, an increase of 8
percent—while the City’s population has grown to approximately 120,000, an increase of 32
percent. Figure 1 below compares increases in park acreage to population growth over time.
Figure 1: Park Acreage and Population Growth (percent increase)
1 Parkland acreage amounts exclude cemeteries, conference centers, and Texas A&M University parks.
0%
1%
2%
3%
4%
5%
6%
7%
8%
2009-10 2010-11 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18
Park Acre % Inc.Park Acre % Inc. (excluding regional parks)Population % Inc.
4 Parkland Dedication
In 2018, the City had 11 acres of parkland per thousand people. When the parkland dedication
program originated in 1970, the National Recreation and Park Association (NRPA) reported that
the average park and recreation agency offered 7 acres of parkland per 1,000 residents. Based
on a 2018 report published by the NRPA, the typical park and recreation agency offers one park
for every 2,114 residents served, with 10 acres of parkland per 1,000 residents.
Although the City had 11 acres of parkland per thousand people in 2018, it sets parkland
dedication requirements based on a goal of 7 parkland acres per thousand people – 3.5 acres of
community and neighborhood parkland each.2 This discrepancy is largely due to regional
parkland acreage not being considered when setting this standard. As can be seen in Figure 2
below, nearly half of the City’s park acreage is composed of regional parkland within Lick Creek
and Veterans parks.
Figure 2: 2018 Park Inventory
Table 1: Park Inventory
Park Type 2008
Acres
2018
Acres
Community 287 334
Neighborhood 300 353
587 687
Veterans (regional) 150 149
Lick Creek (regional) 516 523
666 672
Total Acres 1,252 1,359
Park service level is a function of population, and park acreage. The land dedication requirement
is then proportional to this service level, determined by the estimated number of people the
development can house:
If population increases and parkland remains the same, the service level decreases;
If parkland increases and population remains the same, the service level increases.
Decreasing the expected park service level would mean that past residents were subsidizing
park funding for future residents, while increasing the expected park service level would mean
that future residents will subsidize park funding for past residents.
2 At the time the 2008 ordinance was being developed, a population of approximately 88,000 and park acreage of 616 was
assumed. The park acreage included 29 acres of TAMU parkland, but excluded 666 acres of regional parkland. These
assumptions resulted in 7 acres of parkland per 1,000 population.
Community
25%
Neighborhood
26%
Veterans
11%
Lick
Creek
38%
Parkland Dedication 5
The City’s parkland dedication ordinance requires a developer to either dedicate a certain
amount of land or pay a fee-in-lieu of dedication. The formula for this is shown below:
Parkland Acres X 2.38 3 X Number of Housing X Fair Market
Population Units Proposed Value of an Acre
Service Level
Land Dedication Requirement
Fee-in-Lieu of Land Requirement
The City also requires developers to pay a park development fee or construct park
developments in lieu of the fee. Most Texas cities that have parkland dedication ordinances only
require that land be dedicated and do not impose park development fees. Ordinances that
contain only the land and the fee-in-lieu elements without containing a park development fee
require existing taxpayers to pay the costs of improvements to transform the bare land into a
park.
As can be seen in Figure 3 below, parkland acres per 1,000 population has steadily been
decreasing in College Station since 2010. Community and neighborhood park acres per thousand
population fell below 6 acres in 2017 and remained below that mark in 2018. Some of the
causes of this trend will be discussed in the Findings and Analysis section of this report.
Figure 3: Community and Neighborhood Park Acres per Thousand People4
3 Based on average household size of owner-occupied units according to 2010 census data.
4 Official population estimates obtained from the City’s Planning and Development Services Department were used.
0
1
2
3
4
5
6
7
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Community Park Acres/1,000 Neighborhood Park Acres/1,000
6 Parkland Dedication
Findings and Analysis
The City’s current parkland dedication requirements and fee structure is complex. While much
of this complexity is the result of federal and state law, some of it is due to competing political
interests that have led to several changes in the parkland dedication ordinance over the past 10
years. As the parkland dedication ordinance has become more complex, accurately and fairly
accounting for the land dedication, monies collected, and the funds expended have become
increasingly challenging for City staff. To mitigate these risks, the City has implemented several
internal controls (see Appendix B). Overall, these controls have been effective, but they have
come at the cost of increased administrative burden to City staff, developers, and appointed and
elected governance bodies.
The Parkland Dedication Ordinance is Complex
The City’s parkland dedication requirements are more complex and the associated fees are
higher than most other Texas cities. Transaction complexity often leads to fraud risks resulting
from reduced transparency. In addition, the more complex the transaction the greater the risk
of transactional errors or inaccuracies.
The City’s Requirements are More Complex than other Texas Cities
In 2008, the Texas A&M AgriLife Extension performed a comprehensive study that analyzed the
parkland dedication ordinances of 42 Texas cities and reported the acres of parkland per 1,000
population in 83 Texas cities. At this time, College Station ranked 29 out of 83 in park acres per
1,000 residents. Three of the 42 cities in the study did not have a fee-in-lieu of option and 10
cities calculated fees based solely on market value. Of the remaining 29, College Station had the
highest total parkland dedication fees.
In determining parkland dedication fees, the 2008 study found that 8 cities fee calculations’
differentiated single-family developments from multi-family developments. Ten cities had park
development fees, but only 3 of those 10 differentiated between single-family and multifamily.
In addition, many ordinances were restricted to only a subset of parks—typically neighborhood,
or neighborhood and community parks—instead of all parks, and they did not extend into the
extraterritorial jurisdiction (ETJ) areas. The City of College Station’s 2008 ordinance contained all
these elements, which added to its complexity; and only the City of Bryan rivaled College Station
in its ordinance’s complexity.
Since a comprehensive study of parkland dedication ordinances in Texas has not been
conducted in approximately 10 years, our office examined the parkland dedication ordinances of
other cities. Because population and growth are key factors in determining parkland dedication,
Parkland Dedication 7
cities within ±35,000 of College Station’s population with 10 to 30 percent growth rates were
determined to be benchmark cities. These cities can be seen in Figure 4 below. Cities without
ordinances include Midland, Carrollton, Richardson, Conroe, Odessa, and Killeen (colored in gray
in Figure 4).
Figure 4: Parkland Acres per Thousand People5
College Station’s parkland dedication requirements are some of the highest among comparable
cities. A breakdown of parkland dedication fees in benchmark cities can be seen in Table 2 on
the next page. Unlike other municipalities, the City of College Station charges multifamily
developments by the bedroom and not by the dwelling unit, which makes comparison difficult.
This being said, we estimated College Station to have the third highest total fees of comparable
cities.
In terms of actual land required per dwelling unit, the City appears to be about in the middle for
single-family developments; however, College Station currently has the highest multifamily
parkland dedication requirement. College Station’s dedication requirement for multifamily
developments is one acre per 49 bedrooms for neighborhood parks and 53 bedrooms for
community parks. When these values are converted to dwelling units for comparison purposes
the result is one acre per 21 dwelling units for neighborhood parks and 22 units for community
parks. To put this into perspective, Bryan has the next highest multifamily dedication
requirement amongst the cities examined, with a land dedication of 1 acre per 90 dwelling units.
In other words, developers of multifamily properties are required to dedicate approximately 4
5 Census population estimates and developed parkland acres were used for comparison purposes.
- 2 4 6 8 10 12 14
Pharr
Edinburg
Pearland
Killeen
Odessa
League City
Denton
Allen
Conroe
Bryan
Richardson
Carrollton
Lewisville
Sugar Land
Midland
College Station
Flower Mound
Round Rock
8 Parkland Dedication
times the amount of land for parks in College Station than they are required to dedicate in the
City of Bryan.
Table 2: Parkland Dedication Requirements
City DU/Acre Fee-in-Lieu Dev. Fee Est. Fee-
in-Lieu Total Fees
Lewisville 33 Market Value $1,000/DU $1,758 $2,758/DU
Flower Mound 30 Market Value $278/DU $1,933 $2,211/DU
College Station
SF: NGBH: 117
COMM: 128
MF: NGBH: 21
COMM: 22
SF: $524/DU
MF: $220/BR
SF: $737/DU
MF: $467/BR N/A SF: $1,261/DU
MF: $687/BR6
Pearland 50 Market Value None $1,300 $1,300/DU
League City 90 None $1,000/DU7 N/A $1,000/DU
Denton SF: 143
MF: 222 Market Value SF: $291/DU
MF: $187/DU
SF: $336
MF: $216
SF: $627/DU
MF: $403/DU
Edinburg 50 $600/DU None N/A $600/DU
Allen 100 FMV None $590 $590/DU
Bryan SF: 74
MF: 90
SF: $162/DU
MF: $133/DU $358/DU N/A SF: $520/DU
MF: $491/DU
Sugar Land SF: 100
MF: 146
SF: $350/DU
MF: $240/DU None N/A SF: $350/DU
MF: $240/DU
Round Rock
SF: 1-8% of total
acres of subdivision
MF: 10-20% of total
acres of subdivision
Market Value None N/A N/A
Phar 1 acre/15 acres of
development $1,250/acre $250/DU N/A N/A
Multifamily Dedication Requirements Are Not Proportional to Fees-in-lieu
Although the City modified the parkland dedication ordinance in 2015 and 2017, many of the
assumptions that form the basis of the parkland dedication requirement have remained
constant since the 2012 update to the ordinance. For example, the assumptions for multifamily
developments are as follows:
96,603 population (according to 2012 population estimate)
346 acres of neighborhood parks (according to 2012 estimates)
316 acres of community parks (according to 2012 estimates)
2.38 average persons per household (according to 2010 census data)
Given the before mentioned assumptions have not changed since 2012, service level for
multifamily developments is calculated as follows:
96,603/346 = 1 acre of neighborhood park per 279 people
96,603/316 = 1 acre of community park per 305 people
6 Converted to Dwelling Units, this amount would total $1,636/DU.
7 If a developer pays parkland dedication fees at the time of approval for the master plan, the fee is reduced to $800/DU.
Parkland Dedication 9
This service level results in the following land dedication for multifamily developments:
Neighborhood parks: 279 people/2.38 PPH = 117 Dwelling Units per acre
Community parks: 305 people/2.38 PPH = 128 Dwelling Units per acre
The ordinance’s fee schedule was changed in 2015 to list the amounts for multifamily properties
by bedrooms instead of dwelling units, while single-family properties continued to be listed by
dwelling unit. Prior to this change, with a “by-the-dwelling-unit” assessment, all multifamily
units paid the same amount for parkland dedication regardless of the number of bedrooms. As a
result, multifamily developers constructing units with 1 to 2 bedrooms per unit were typically
paying more per bedroom than the multifamily developers that constructed units with more
than three bedrooms per unit.
The documentation regarding the 2015 ordinance presented to City Council states “since the
current fees were established assuming an average of 2.38 persons per household, the
amendment assumes that the previous “per dwelling unit” requirement can be divided by 2.38
resulting in a “per person” or “per bedroom fee for multi-family projects.”
Although this statement is a fair assumption when converting dwelling units to bedrooms for
the fee-in-lieu of land dedication. This is not the case when converting the dwelling units per
acre of dedicated land to bedrooms per acre. Consequently, the 2015 ordinance’s methodology
resulted in the following land dedication requirement:
Neighborhood parks: 117/2.38 = 49 bedrooms per acre of dedicated land
Community parks: 128/2.38 = 53 bedrooms per acre of dedicated land
As a result of this change, it could be as much as 6 times more costly for multifamily
developments to dedicate parkland than to pay the fee-in-lieu of land. Therefore, the City
should change these requirements so that they are proportional to the fee-in-lieu dedication. A
cost neutral conversion that results in a land dedication requirement proportional to the fee-in-
lieu of dedication could have been achieved by the following calculation:
Neighborhood parks: 117 x 2.38 = 278 bedrooms per acre of dedicated land
Community parks: 128 x 2.38 = 305 bedrooms per acre of dedicated land
Ordinance Changes Have Increased Parkland Dedication Complexity
Over the past ten years there have been four changes to the parkland dedication ordinance that
impacted the dedication requirements and the fees collected, as well as significantly adding to
the ordinance’s complexity. Although the ordinance was modified most recently in 2015 and
2017, the two most significant changes occurred in 2008 and 2012.
The change that occurred in 2008 was the most extensive and resulted in an ordinance that
imposed some of the highest parkland dedication fees and land dedication requirements in
Texas. Subsequent City Councils have modified the ordinance to shift or lesson the burden of
10 Parkland Dedication
fees and land requirements. Although some City Councils desired to increase parkland
dedication requirements and fees while others sought to reduce them, most changes made
since 2008 have resulted in added layers of complexity.
The 2012 changes made to the parkland dedication ordinance resulted in an overall reduction of
parkland dedication and fees. In addition, changes made to the variables that form the basis of
the parkland dedication calculations shifted the burden of costs from single-family
developments to multifamily developments. For example, the 2012 ordinance gave a 75 percent
discount on single-family community park development fees and a 50 percent discount on
multifamily community park development fees. Table 3 compares the assumptions from the
2008 parkland dedication ordinance to those in the 2012 ordinance. The table below also
describes the effect of a variable on parkland dedication fees (assuming all other variables are
held constant).
Table 3: Parkland Calculation Dedication Variables
Variable 2008 2012 Impact
on Fee
Neighborhood parks acres 308 346 Increase
Community parks acres 299 316 Increase
Population 87,758 96,603 Decrease
Owner-occupied Persons Per Household 2.80 2.38 Decrease
Renter-occupied Persons Per Household 2.28 2.38 Increase
Land value (cost per acre) $32,000 $32,000 None
Neighborhood park cost $630,520 $350,000 Decrease
Community park cost $2,500,000 $7,600,000 Increase
Number of neighborhood parks 38 42 Increase
Number of community parks 8 8 None
Single fam. development discount 0% 75% Decrease
Multi fam. development discount 0% 50% Decrease
Some Parkland Dedication Requirements May Merit Periodic Consideration
The fee-in-lieu of a land dedication should be a reasonable amount based on the land that
should have been dedicated. Six of 11 benchmark municipalities (55%) use the fair market value
(FMV) of the land that would be dedicated to calculate their fee. The other 5 benchmarks
periodically estimate the FMV of land in their jurisdiction and use this amount to assess all
developers’ requirements. The City of College Station uses the latter methodology and has
assumed since 2008 that a reasonable price per acre of land is $32,000. If a new development
could house about 1,000 people (420 single-family homes), but chose to pay the fee-in-lieu, they
would be charged $224,000 (i.e. 7 acres x $32,000).
Using multiple listing service (MLS) data provided by City staff, we found that the median price
of undeveloped land8 in College Station for the past five years was $22,094 and in the past year
8 Included properties over 10 acres not zoned commercial to best represent land to be developed to residential properties.
Parkland Dedication 11
was $29,293. While this calculation indicates that parkland dedication acquisition fees may have
been high in the past, they have generally been decreasing over time. In addition, it appears
reasonable to use this land value assumption for the next few years, but it should be re-
evaluated periodically.
In addition to a land dedication requirement, the City requires the payment of a park
development fee, which is based on the estimated cost per person the City would incur by
developing a neighborhood park ($350,000; about 2,300 people) and community park
($7,600,000; about 12,060 people) respectively. The City’s current park development fee gives a
75 percent discount on the community park cost to single-family developments and a 50
percent discount to multifamily developments due to changes made to community park
development standards in 2012. These discounts were enacted to keep these fees from
substantially increasing due to park construction cost increases and a change in neighborhood
and community park standard that occurred between 2008 and 2012. However, we found that
there does not appear to be a cogent basis for which these discounts percentages were
determined.
In lieu of paying a park development fee, a developer may construct park developments
according to the City’s standards. Six of 11 benchmark cities (55%) charge a park development
fee, while 5 separate benchmark cities (45%) allow the developer to construct park
developments. In addition, we found that some cities either require or offer discounts for
developer constructed parks that are turned over to home owner associations to manage and
maintain.
Ordinance Complexity Has Impacted Internal Controls Costs
Internal controls helps to achieve policy goals, protects assets from misuse and theft, and
increases the accuracy and reliability of financial records. Overall, we found that the City’s
internal controls over the assessment, collection, and expenditure of parkland dedication funds
to be well designed. However, the City’s system of internal controls over the parkland
dedication process, documented in Appendix B, has come at significant costs.
Due to the complexities of the ordinance previously described in this report, designing a process
that mitigates all significant risks has been challenging for City staff. Consequently, if future
changes are made to the parkland dedication ordinance, they should be made in consideration
of the administrative burden placed on staff. It is important to keep in mind that the more
complex the transaction, the greater the risk of transactional errors or malfeasance—and thus a
more costly system of internal controls is needed to prevent such occurrences.
12 Parkland Dedication
Timely Expenditure of Parkland Funds Has Been Challenging
Having separate community and neighborhood fees and funds compounds collection issues and
hinders effective spending. Meanwhile, not expending collected parkland dedication funds in a
timely fashion exposes the City to several risks. For example, the City risks being required to
refund monies, but how and to whom the refund is issued may be problematic. In addition, both
developers from whom the monies were collected and the citizens that live in the corresponding
development are likely to grow frustrated if park amenities are not delivered in a reasonable
time frame.
The City Has More Park Zones than Other Texas Cities
Like College Station, most Texas cities with parkland dedication programs create park zones to
ensure that the money generated from developments in a zone is expended in that zone. A
likely reason this methodology is so widely employed is due to legal precedent that appears to
suggest that the enacting jurisdiction should provide a connection between the demand
generated by the development and the park being developed with those resources.
To this effect, the City’s system of internal controls is designed to ensure that money collected
in a certain park zone is used to develop a park within that specific zone. The City currently
collects fees in 2 community park zones and 16 neighborhood park zones. These zones can be
seen on the maps in Figure 5 below. Unlike College Station, the comparable cities examined
typically have far fewer zones, and do not separate the zones into community and
neighborhood zones.
Figure 5: Park Zone Maps
Community Park Zones Neighborhood Park Zones
Parkland dedication fees sometimes apply in the extra-territorial jurisdiction (ETJ). In addition,
we can see from Figure 5 that the City currently charges community park fees in the ETJ, but
does not charge neighborhood fees. This reflects a 2017 policy change that amended the City’s
Parkland Dedication 13
Parks and Recreation Master Plan to discontinue building neighborhood parks in the ETJ,
however, community parks would still be built. Four of 11 benchmark cities (36%) require
parkland dedication in the ETJ.
New Parks Should Be Built Within a Reasonable Time Frame
When fees-in-lieu are paid, the homes generating the fees should expect to benefit from new
park amenities within a reasonable time frame. Nevertheless, many cities fail to specify a time
frame of any kind, which could be considered a limitation of their parkland dedication
ordinances. When they do, a reasonable time frame is most commonly determined to be either
10 or 5 years. Similar to the City of College Station, 67 percent of benchmark cities’ ordinances
define a reasonable time frame as 10 years.
If the reasonable time frame criterion is not met, many cities provide for the landowners who
have paid parkland dedication fees to receive a refund. The City’s current ordinance requires
parkland dedication fees to be encumbered or expended by the City within 10 years of the date
received. The City is then required to refund the property landowner on the expiration of the
received date.
Parkland Dedication Ordinance Complexity Hinders Spending
Collected parkland dedication fees are accounted in the City’s Tyler MUINIS system in separate
funds based on the development’s neighborhood and community park zone. Each month, Fiscal
Services staff reconciles the payments recorded in TRAKiT and in Tyler MUNIS. During fiscal year
2018, there were 26 active park funds: 6 community funds and 20 neighborhood funds.9 Funds
are then spent out of these accounts either through the purchase order process or the capital
projects process to ensure monies are spent in the appropriate areas. Figure 6 below shows how
the park zone funds have changed between fiscal years 2013 and 2017.
Figure 6: Park Zone Funds (FY13-FY17)
9 Active park fund means that the fund was growing either due to interest or developer contributions.
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
FY13 FY14 FY15 FY16 FY17
Contributions Expenditures Ending Balance
14 Parkland Dedication
In other words, numerous park zones hinder effective parks spending. For instance, only three
of the twenty active neighborhood park zones have more than $350,000, which is the amount
the City estimates it takes to construct a neighborhood park. Indeed, each neighborhood park
fund has about $118,000 on average, but actually over half of the accounts have less than
$50,000. On the other hand, these funds total about $2.4 million dollars – enough money to
build almost seven neighborhood parks. Table 4 shows the summary statistics of each park zone
fund type.
Table 4: Park Zone Funds Balance (12/17/18)
Count Average Min Max Total
Neighborhood Park 20 $ 118,045 $ 00,108 $ 0,546,964 $ 2,360,899
Community Park 6 $ 780,544 $ 40,634 $ 3,026,718 $ 4,683,263
Total: 26 $ 270,929 $ 00,108 $ 3,026,718 $ 7,044,162
Recent Changes Have Aimed to Address Spending Difficulties
Not only do these spending difficulties hinder the City’s goal of providing recreational areas, but
also leave the owners of the property without the use of a park. A 2017 change to the City’s
parkland dedication ordinance attempted to correct some of these issues by implementing the
following changes:
Allowed collection of parkland dedication funds to be used for improvements as well as
acquisition and development;
Combined community park zones A&B and C&D and dissolved neighborhood park zones
in the ETJ;
Prohibited parkland dedication funds that are encumbered as well as expended from
being refunded; and
Extended the right to refund term to 10 years from 5 years, but compelled the City to
automatically refund landowners instead of requiring a written request.
Allowing funds to be used for improvements as well as acquisition and development of park
land adequately expands the City’s ability to spend park zone funds. In addition, as the funds
must be spent in the zone they are collected, the City can demonstrate a reasonable connection
between the need created and the benefit being received.
Similarly, combining community park zones allows for monies being collected to be spent more
effectively. For instance, land where there is little development can be purchased to construct
new community parks. This would previously have been more difficult because funds could only
be spent where development was taking place. Thus, unless large swaths of land were
dedicated, it was difficult to acquire enough land to warrant a community park.
Parkland Dedication 15
Likewise, specifying that encumbered funds cannot be refunded protects the City from having a
park acquisition or development planned or under contract and suddenly losing its funding.
Finally, changing the refund limit to 10 years gives the City more time to spend contributed
funds and decreases the risk that a needed park will not be developed.
However, requiring the City to automatically refund landowners could create a large
administrative burden on City staff if the money is not expended or encumbered prior to the 10-
year time frame.10 As of the end of fiscal year 2018, approximately $867,000 has been collected
with this refund expectation – presenting a potentially onerous burden if not spent within the
10-year time frame.
All this being said, there is some issue of expectation. The City’s parkland dedication ordinance
asserts that parks and recreational areas are required for the health, safety, and general welfare
of the population. If the City fails to provide the benefit associated with the perceived need of
its citizens it risks a loss of reputation.
10 This change was based on a recommendation from the Planning and Zoning Commission to automatically issue a refund to
the developer for whom the fee was collected. Prior to this change being considered, the City’s Legal staff advised the City
Council that refunds should legally be issued to landowners, which will in many cases not be the developers.
16 Parkland Dedication
Parkland Dedication Fee Collection Is Challenging
Parkland dedication fees are assessed and collected by Planning and Development Services staff
through the City’s TRAKiT system. Normally, this system automatically assesses parkland
dedication fees to all multifamily building permits and residential final plats based on the
number of bedrooms or dwelling units entered by the developer. A plans examiner or planner
verifies these numbers before the fees are collected by Planning and Development Services
cashiers as part of their normal duties. Developers are required to pay the assessed fees before
the permit is issued or the plat is filed.
Due to the complexities of the ordinance described previously, many parkland dedication
applicable projects do not go through the normal process. Instead they must receive additional
approvals by the Parks and Recreation Department, the Parks and Recreation Advisory Board,
and the Planning and Zoning Commission depending on why they are exceptions (see Appendix
B). This could be because land is being dedicated, park developments are being constructed, or
the project is vested to a previous fee schedule. These complications are discussed further in
following sections.
In order to assess the effectiveness of the systems involved, we collected data for two different
scopes: calendar years 2015 through 2017 and fiscal years 2016 through 2018. Table 5 presents
a summary of the development records reviewed over the course of the audit in conjunction
with our scopes:
Table 5: Reviewed Development Records
CY15-CY17 FY16-FY18 Total Reviewed
Count Amount Count Amount Count Amount
Multi-Family Permits 155 $ 3,302,642 128 $ 2,774,920 166 $ 3,658,508
Residential Permits 361 $ 0,730,548 348 $ 0,728,026 370 $ 0,748,202
New Construction Permits 4 $ 0,812,536 3 $ 0,812,536 4 $ 0,812,536
Tenant Finish-Out 1 $ 0,002,000 1 $ 0,002,000 1 $ 0,002,000
Final Plat 135 $ 1,626,613 46 $ 1,306,387 167 $ 1,945,981
Development Plat 1 $ 0,001,261 1 $ 0,001,261 1 $ 0,001,261
Mixed-Use Plat 6 $ 0,016,250 1 $ 0,016,250 7 $ 0,016,250
Total: 663 $ 6,491,850 528 $ 5,641,390 716 $ 7,184,738
Fee Assessment Systems Adequately Account for Collections
The City’s TRAKiT system automatically assigns the correct fund account number to each record
based on the address or parcel number. We evaluated the accuracy of this system by comparing
each parkland dedication transaction’s address on Google Maps to the Parks and Recreation
Master Plan, and were able to verify that all 528 records paid between October 1, 2015 and
September 30, 2018 (fiscal years 2016 to 2018) were categorized in TRAKiT correctly.
Parkland Dedication 17
Parkland dedication fees are paid either during the final plat for single-family residences or at
the building permit level for multifamily residences. In order to verify that fees were assessed to
all appropriate records in TRAKiT, we sequentially reviewed all multi-family permit, final plat,
and mixed-use final plat records between January 1, 2015 and December 31, 2017 (calendar
years 2015 to 2017). Of the 663 records in this scope, 121 were not assessed a fee. These are
broken down in Table 6 into “No Risk,” “Low Risk,” “Medium Risk,” and “High Risk” categories
based on the likelihood that they were incorrectly not assessed a fee.
Table 6: No Fee Charged Risk (CY15-CY17)
Risk Level No. of Records Potential Dollar Value11
High 5 $ 016,036
Medium 1 $ 189,150
Low 29 $ 626,324
None 86 N/A
Total: 121 $ 848,974
We verified that 5 records were incorrectly not charged a fee, resulting in an actual loss for the
City of $16,036. The records in question were typically redevelopment of a property that
previously had a single-family dwelling. When the property was redeveloped as a duplex, the
parkland dedication fee created by the additional dwelling unit was not charged. The amount of
loss is less than 1 percent of the actual amount collected during this period and is thus
immaterial, however, these errors exemplify the effects of ordinance complexity.
The Inaccuracies Identified are Not Material
The City of College Station’s current fee schedule requires each residential development to
dedicate an amount of land and pay a park development fee based on the number of dwelling
units (for single-family developments) or bedrooms (for multifamily developments) being built.
The City’s ordinance allows for a fee to be paid in lieu of donating land and also allows for the
developer to construct park developments instead of paying the park development fee.
We reviewed the submitted plans and additional documentation of each record with parkland
dedication fees paid between October 1, 2015 and September 30, 2018 in order to verify that
they had been assessed accurately.
We found 161 records that are incorrect, but 159 of them are related to one specific
development. This development was charged an additional fee because they proposed building
dwelling units with 5 bedrooms. The City determined that the developer should pay an
additional $91 for each dwelling unit – $35 for neighborhood parks and $56 for community
parks. For these 159 records (211 dwelling units), however, the total additional fee of $91 per
11 This amount reflects the amount that would have been charged if the fees were collected based on the current fee schedule
at the date of application.
18 Parkland Dedication
unit was assessed entirely as a community park fee. This resulted in a total of $7,486 being
incorrectly accounted in Community Park Zone B, which should instead be moved into
Neighborhood Park Zone 15.
Another record is for one specific apartment development, which should have been charged the
current multifamily fee. Instead, single-family fees were charged for all except the neighborhood
park development fee. This resulted in an over-charge of $3,075 for Community Park Zone B and
$2,386 for Neighborhood Park Zone 1.
Finally, one single-family house was rebuilt as a duplex, which would warrant a total fee of
$1,261, however, they were actually charged $2,533. Resulting in an over-charge of $1,272.
Although there are errors, the actual amounts in question are immaterial (i.e. less than 1% was
incorrectly accounted and less than 1% was overcharged).
This being said, it was extremely difficult to reconcile the remaining records in our scope with a
high degree of certainty. Therefore, we categorized these records into “No Risk,” “Low Risk,”
“Medium Risk,” “High Risk,” and “Incorrect” transactions based on the documentation available.
As can be seen in Table 7 below, it is telling that only 51% of the amount collected during our
scope is at low or no risk level. This is mostly not due to the fault of the departments involved,
but is instead due to outside factors that are further explored below.
Table 7: Remittance Risk – FY16-18 Scope
Risk Level No. of
Records
Total Dollar
Value
Potential
Dollar Value12
At-Risk Amount
Under Over
Incorrect 161 $ 0,382,502 $ 0,516,624 $ 0,161,485 ($ 27,363)
High 96 $ 0,318,546 $ 0,352,048 $ 0,046,684 ($ 13,182)
Medium 164 $ 2,054,998 $ 3,712,130 $ 1,690,871 ($ 33,740)
Low 45 $ 0,070,616 $ 0,245,358 $ 0,174,742 ($ 000.00)
No 61 $ 2,814,718 $ 2,814,718 $ 0,0000.00 ($ 000.00)
Total: 528 $ 5,641,380 $ 7,640,878 $ 2,073,782 ($ 74,284)
Fee Assessment Is Complicated By Outside Factors
Parkland dedication requirement options make verifying payment amounts onerous. Dedication
exceptions affected 31 records within our scope, accounting for $755,915 or about 13 percent
of the money collected. These exceptions involve a proposal from a developer to dedicate land,
develop a park, or both. Proposals are discussed with Parks and Recreation staff and reviewed
by the Parks and Recreation Advisory Board, but are ultimately approved or refused by the
Planning and Zoning Commission.
12 This amount reflects amount that would have been charged if fees were collected on this record based on the current fee
schedule at the date of application.
Parkland Dedication 19
These exceptions are at a higher risk because documentation for the dedication is often hard to
associate with the records in question. For instance, large residential development final plat
records typically have a parkland administrative approval form attached that is signed by the
Director of Planning and Development Services, however, these are often not present for multi-
family permit records. In addition, these forms may reference that parkland was dedicated, but
may not reference how much or where to locate the final plat which has the dedicated land.
This makes verifying land dedication and thus the fees that must still be paid difficult – not just
for our staff, but also for Planning and Development Services.
State law requirements further muddle parkland dedication fee assessment. Vesting exceptions
affected 299 records within the scope, accounting for $1,724,334 or about 31 percent of the
money collected. Texas Local Government Code 245 allows development projects to be vested
to a certain date for specific types of licenses and fees, including parkland dedication fees. This
means that if a developer began a project previous to the City’s update to parkland dedication
fees, the developer has the right to choose which fee schedule they wish to fall under. If we
imagine parkland dedication fees did not vest, the City would have instead collected $2,728,304
– a little over a $1 million difference.13 While vesting parkland dedication fees is not an issue
caused by the City, it does still impact the complexity – and thus administrative burden – of the
City’s parkland dedication fee structure.
13 This calculation accounts for developments that dedicated land or constructed park developments.
20 Parkland Dedication
Recommendations
Based on our review, it appears that the primary cause of many of the audit findings detailed in
this report are related to the complexity of the City’s parkland dedication ordinance. As a result,
we recommend the City consider several potential modifications to the ordinance. This being
said, we hold the position that it is Council’s responsibility to set policy, while management’s
duty is to carry out this policy direction effectively and efficiently. Therefore, policy decisions,
such as determining the appropriate parks service level, are not addressed in the following
recommendations.
The Director of Parks and Recreation should work with the Legal and Planning and Development
Services Departments in considering the following modifications to the parkland dedication
ordinance.
1. Modify the parkland dedication ordinance so that dedication requirements for
multifamily developments are proportional to the fee-in-lieu of dedication. If this
modification is not made, it could be as much as 6 times more costly for multifamily
developments to dedicate parkland than to pay the fee-in-lieu of land.
2. Reduce the number of parkland zones to the fewest number of zones that is legally
permissible. Eliminating the distinction between neighborhood and community parks
zones should also be considered. But only if the total number of zones can be
reasonably reduced to a number that will not adversely impact the timely construction
of community parks. Ideally, the size of the zones should be based on information from
empirical studies measuring how far people in the community travel to parks.
3. Modify or eliminate the discounts built into the park development fee. It is important to
note that this will result in higher fees if all other variables remain constant. Therefore,
the City Council’s input should be sought as to the appropriate park service level and
fees to be charged if this modification to the ordinance is to be considered.
4. Eliminate parkland dedication in the extra territorial jurisdiction (ETJ). Building and
maintaining parks outside of city limits presents several challenges to a municipality. For
this reason, very few cities require parkland dedication for developments in their ETJ.
5. Develop a more elegant parkland dedication methodology. The City’s current parkland
dedication ordinance is one of the most complex ordinances in the State. Multiple
solutions should be considered in modifying the ordinance’s methodology. The Director
of Parks and Recreation should not only work with Legal and Planning and Development
staff, but also consult with colleagues at other cities and experts within the field when
considering modifications to the ordinance’s methodology. Any changes made to the
Parkland Dedication 21
ordinance should seek to simplify it instead of adding any additional layers of
complexity.
In addition to the recommendations related to modifying the parkland dedication ordinance, the
Director of Parks and Recreation should work with the City Manager’s Office and the Planning
and Development Services Department in considering the following:
6. Require Parks and Recreation staff to verify parkland dedication acres and parkland
dedication fees that have been collected by Planning and Development staff. Although
we found internal controls to be generally well designed, this segregation of duty will
help ensure accurate land dedications and cash collections with minimal added cost.
7. Consider engaging the Texas Municipal League or other contract partners to advocate
on the City’s behalf to modify Texas Local Government Code 245. This state code allows
development projects to be vested to a certain date for specific types of licenses and
fees, including parkland dedication fees. The City should weigh the costs and the
likelihood of success in eliminating or modifying this code against the costs and risks
imposed on the City as a result of this legislation.
22 Parkland Dedication
Appendix A: Management’s Response
CITY OF COLLEGE STATION PARKS AND RECREATION DEPARTMENT
PARKLAND DEDICATION AUDIT RECOMMENDATION RESPONSE
FEBRUARY 15, 2019
Following is the response from the Parks and Recreation Department Director for each of the
recommendations from the January 2019 Parkland Dedication Audit.
The Director of Parks and Recreation should work with the Legal and Planning and Development
Services Departments in considering the following modifications to the parkland dedication ordinance.
1. Modify the parkland dedication ordinance so that dedication requirements for multifamily
developments are proportional to the fee-in-lieu of dedication. If this modification is not made, it
could be as much as 6 times more costly for multifamily developments to dedicate parkland than to
pay the fee-in-lieu of land.
Answer: Agree. This item can be accomplished with the expected update of the ordinance in
response to this audit.
2. Reduce the number of parkland zones to the fewest number of zones that is legally permissible.
Eliminating the distinction between neighborhood and community park zones should also be
considered. But only if the total number of zones can be reasonably reduced to a number that will
not adversely impact the timely construction of community parks. Ideally, the size of the zones
should be based on information from empirical studies measuring how far people in the community
travel to parks.
Answer: Agree. While the number of Neighborhood Park Zones was recently reduced from 29 to
16, it was accomplished by removing the Neighborhood Zones located within the ETJ. I agree that
we may be able to reduce the number of Neighborhood Park Zones within the City Limits even
further by combining adjacent zones, while staying within close proximity and taking into account
access barriers (natural and man-made).
I agree with combining the Neighborhood and Community Park distinctions into a single category of
Parks. This will enable the City to include all park properties in the methodology calculations as well
as be a major step in simplifying the Parkland Dedication Ordinance. I would like to keep the 2
Community Park Zones, however, to enable the City to spend collected funds from all of the
Neighborhood Park Zones located within their respective Community Park Zones in order to not
adversely impact timely construction/development of community parks.
3. Modify or eliminate the discounts built into the park development fee. It is important to note that
this will result in higher fees if all other variables remain constant. Therefore, the City Council’s input
should be sought as to the appropriate park service level and fees to be charges if this modification
to the ordinance is to be considered.
Parkland Dedication 23
Answer: Agree. The discounts can be removed with the inclusion of all parks into a single
category, as they were applied only with the Community Park development calculations. Options,
such as remaining at the current target service level of 7 acres per 1,000 population, adjusting the
target to the current actual service level of 11 acres per 1,000 population, or even targeting the
national average service level of 10 acres per 1,000 population, can be considered.
4. Eliminate parkland dedication in the extra territorial jurisdiction (ETJ). Building and maintaining
parks outside of city limits presents several challenges to a municipality. For this reason, very few
cities require parkland dedication for developments in their ETJ.
Answer: Agree. This will greatly simplify the Parkland Dedication Ordinance with both collections
and expenses. Issues with Parkland Dedication requirements have, at times, become issues when
working with developments located within the ETJ.
5. Develop a more elegant parkland dedication methodology. The City’s current parkland dedication
ordinance is one of the most complex ordinances in the State. Multiple solutions should be
considered in modifying the ordinance’s methodology. The Director of Parks and Recreation should
not only work with Legal and Planning and Development staff, but also consult with colleagues at
other cities and experts within the field when considering modifications to the ordinance’s
methodology. Any changes made to the ordinance should seek to simplify it instead of adding any
additional layers of complexity.
Answer: Agree. The audit recommendations will go a long ways towards simplifying the
ordinance. As these recommendations are applied to the ordinance’s methodology, the resulting
fees will be easier to understand, calculate, collect, and spend, while at the same time staying within
the bounds of the ordinance guidelines, rules and purpose.
In addition to the recommendations related to modifying the parkland dedication ordinance, the
Director of Parks and Recreation should work with the City Manager’s Office and the Planning and
Development Services Department in considering the following:
6. Require Parks and Recreation staff to verify parkland dedication acres and parkland dedication fees
that have been collected by Planning and Development staff. Although we found internal controls to
be generally well designed, this segregation of duty will help ensure accurate land dedications and
cash collections with minimal added cost.
Answer: Agree. The Parks and Recreation Project and Asset Manager will be assigned this task,
in conjunction with the Parks and Recreation Business Services Manager.
7. Consider engaging the Texas Municipal League or other contract partners to advocate on the City’s
behalf to modify Texas Local Government Code 245. This state code allows development projects to
be vested to a certain date for specific types of licenses and fees, including parkland dedication fees.
The City should weigh the costs of the likelihood of success in eliminating or modifying this code
against the costs and risks imposed on the City as a result of this legislation.
Answer: Agree.
24 Parkland Dedication
Appendix B: Internal Control and Process Summary
Parkland Dedication Ordinance Update Process
Parks & Recreation Planning &
Development
City Attorney s
Office
Parks & Recreation
Board
Planning & Zoning
Commission City Council
About every
three years
Approved?
Discuss & decide
on ordinance
changes
Proposed
Ordinance Review and
make a
recommendation
Fee change?
Review and
make a
recommendation
Review proposed
ordinance and
recommendations
Ordinance
update complete
Set up new fee
schedule Yes
Yes
No
No
2 3 4 5 6
9
7
8
10
1
Parkland Dedication Remittances
Applicant Plans Examiner Development
Coordinator Planner Parks &
Recreations
Parks &
Recreation Board
Planning &
Zoning
No
Fee assessed by
TRAKiT
Construct park
improvements?
Project
type?
Submit
application
No
Vested?
Pay Parkland
dedication fees
Verify
vested date
Permit
No
Verify parkland
dedication fields
Pay parkland
dedication fees
Modify fee
accordingly
Yes
Planning & Dev
Cash Handling
Process
Review park
site plan
Approved?
Yes
Review park
site planYes
Discuss parkland
dedication options
Approved?
Plat
No
Dedicate
land?Approved?
No
Verify parkland
dedication fields
Dedication
submitted on
final plat
No
Yes
Review and make
recomendation
Review
recommendation
& plat
Land is
platted
Yes
1
2
7
8
11
13
19
20
9
1012
3
4 5
6
14 23
2215
17 16
18 21
Parkland Dedication and Maintenance Process
Planning & Zoning
Commission
Planning &
Development Brazos County Applicant Parks & Recreation
Update City
systems with new
parkland
Land dedication
approved
Receive Mylar of
dedicated land
Notify Parks &
Recreation of new
park acreage
Review
site plan
Approved?
Update park
inventory
spreadsheets
Submits park
site plan
Development
in-lieu of fee
approved?
Yes
Verify inventory
items in park land
No
No
Construct park
developmentsYes
10
2 Transfer dedicated
land to the City
Purchases new
parkland
3
5
6
4 1
7
89
11
12
14 Accounts
Payable
Process
Maintain
and develop
park land
13
15