CITY OF NACOGDOCHES, TEXAS For the Year Ended

Transcription

CITY OF NACOGDOCHES, TEXAS
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
For the Year Ended September 30, 2011
As Prepared By:
Finance Department
City of Nacogdoches, Texas
Comprehensive Annual Financial Report
For The Year Ended September 30, 2011
TABLE OF CONTENTS
Page
Exhibit/Table
INTRODUCTORY SECTION
Letter of Transmittal
GFOA Certificate of Achievement
Organization Chart
List of Principal Officials
3
8
9
10
FINANCIAL SECTION
Independent Auditor's Report on Financial Statements
13
Management's Discussion and Analysis (Required Supplementary Information)
15
Basic Financial Statements
Government-wide Financial Statements:
Statement of Net Assets
Statement of Activities
27
28
Exhibit A-1
Exhibit A-2
30
Exhibit A-3
31
Exhibit A-4
32
Exhibit A-5
33
Exhibit A-6
34
36
Exhibit A-7
Exhibit A-8
38
39
40
Exhibit A-9
Exhibit A-10
Exhibit A-11
Fund Financial Statements:
Balance Sheet - Governmental Funds
Reconciliation of the Governmental Funds
Balance Sheet to the Statement of Net Assets
Statement of Revenues, Expenditures, and Changes in
Fund Balances - Governmental Funds
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of Governmental Funds to the Statement of Activities
Statement of Revenues, Expenditures, and Changes in
Fund Balances - Budget (GAAP Basis) and Actual - General Fund
Statement of Net Assets - Proprietary Funds
Statement of Revenues, Expenses, and Changes in
Fund Net Assets - Proprietary Funds
Statement of Cash Flows - Proprietary Funds
Statement of Net Assets - Fiduciary Funds
Notes to the Financial Statements
41
Combining and Individual Funds Statements as Supplementary Information
Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet - All Nonmajor Governmental Funds
63
Exhibit B-1
65
Exhibit B-2
Combining Balance Sheet - Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes
66
Exhibit B-3
in Fund Balances - Nonmajor Special Revenue Funds
Budgetary Comparison Schedules:
Economic Development Fund
Community Development Fund
Forfeiture Fund
68
Exhibit B-4
70
71
Exhibit B-5
Exhibit B-6
72
73
Exhibit B-7
Exhibit B-8
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances - All Nonmajor Governmental Funds
Special Revenue Funds:
Historical Fund
Hotel & Motel Fund
74
Exhibit B-9
Public Safety Fund
Mayor's Committee on Disabilities Fund
Special Grants Fund
75
76
77
Exhibit B-10
Exhibit B-11
Exhibit B-12
Debt Service Funds:
Budgetary Comparison Schedule:
Debt Service Fund
78
Exhibit B-13
79
Exhibit B-14
80
Exhibit B-15
Permanent Funds:
Budgetary Comparison Schedule:
Sunset Trust Fund
Internal Service Funds:
Combining Statement of Net Assets
Combining Statement of Revenues, Expenses and Changes
in Fund Net Assets
81
Exhibit B-16
82
Exhibit B-17
83
Exhibit B-18
Net Assets by Component
Expenses, Program Revenues, and Net (Expense)/Revenue
General Revenues and Total Change in Net Assets
86
88
90
Table C-1
Table C-2
Table C-3
Fund Balances of Governmental Funds
92
Table C-4
Changes in Fund Balances of Governmental Funds
Tax Revenues by Source, Governmental Funds
Assessed Value and Estimated Actual Value of Taxable Property
Direct and Overlapping Property Tax Rates
Principal Property Tax Payers
Property Tax Levies and Collections
Direct and Overlapping Sales Tax Rates
Ratios of Outstanding Debt by Type
Ratios of General Bonded Debt Outstanding
Pledged-Revenue Coverage
Demographic and Economic Statistics
Principal Employers
Full-Time-Equivalent city Government employees by Function/Program
Operating Indicators By Function
Capital Asset Statistics by Function
94
96
97
98
100
101
102
103
105
106
107
108
109
110
112
Table C-5
Table C-6
Table C-7
Table C-8
Table C-9
Table C-10
Table C-11
Table C-12
Table C-13
Table C-14
Table C-15
Table C-16
Table C-17
Table C-18
Table C-19
Combining Statement of Cash Flows
Fiduciary Funds:
Agency Funds:
Combining Statement of Changes in Assets and Liabilities
STATISTICAL SECTION
COMPLIANCE SECTION
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
Report on Compliance with Requirements That Could Have a Direct and
Material Effect on each Major Program and on Internal Control over
Compliance In Accordance With OMB Circular A-133
Schedule of Findings and Questioned Costs
Summary Schedule of Prior Audit Findings
117
119
121
122
Corrective Action Plan
123
Schedule of Expenditures of Federal Awards
Notes to the Schedule of Expenditures of Federal Awards
124
126
This page is left blank intentionally.
Nacogdoches^
the oldest town in Texas
f
February 21, 2012
To the Honorable Mayor, members of the City Council and the Citizens of the City of
Nacogdoches, Texas
The comprehensive annual financial report of the City of Nacogdoches, Texas for the fiscal year
ended September 30, 2011 is hereby submitted as mandated by both local ordinances and state
statutes. These ordinances and statutes require that the City of Nacogdoches issue an annual
report on its financial position and activities in conformity with U.S. generally accepted
accounting principles (GAAP), and audited in accordance with U.S. generally accepted auditing
standards by a firm of licensed certified public accountants.
Management assumes full responsibility for the completeness and reliability of the information
contained in this report, based upon a comprehensive framework of internal control that it has
established for this purpose. Because the cost of internal control should not exceed anticipated
benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial
statements are free of any material misstatements.
Halls, Johnson, McLemore, Redfield & Rodrigues, LLP, Certified Public Accountants, have
issued an unqualified opinion on the City of Nacogdoches, Texas' financial statements for the
fiscal year ended September 30, 2011. The independent auditor's report is presented as the first
component of the financial section of this report.
GAAP requires that management provide a narrative introduction, overview, and analysis to
accompany the basic financial statements in the form of Management's Discussion and Analysis
(MD&A). This letter of transmittal is designed to complement MD&A and should be read in
conjunction with it. The City of Nacogdoches' MD&A can be found immediately following the
report of the independent auditors.
Profile of the Government
The City of Nacogdoches, incorporated in 1929, is located in Texas Forest Country at the
intersections of U.S. Highway 59, State Highway 21, and State Highway 7. The City of
Nacogdoches is 65 miles south of Interstate 20 and is located approximately 140 miles northeast
of Houston, Texas, 90 miles southwest of Shreveport, Louisiana, and 160 miles southeast of
Dallas, Texas. It also serves as the county seat for Nacogdoches County. The City currently has a
land area of 27.01 square miles and a population of 32,996 according to the 2010 census. It is
empowered to levy a property tax on both real and personal property located within its
boundaries and has the power by state statute to extend its corporate limits by annexation, which
is done periodically when deemed appropriate by the City Council.
The City operates under a council-manager form of government. Policymaking and legislative
authority are vested in the City Council, which consists of a mayor, elected at large, and four
council members, elected by ward. Council members and the mayor are elected on a non-partisan
basis, for two-year staggered terms with two councilmen elected on even years and two
councilmen and the mayor elected on odd years. The Council is responsible, among other things,
for passing ordinances, adopting the budget, appointing committees and hiring the City Manager.
The City Manager is responsible for carrying out the policies and ordinances of the Council, for
overseeing the day-today operations, and appointing the City departments heads.
The City of Nacogdoches provides a full range of services, including: police and fire protection,
the construction and maintenance of streets, water and sewer utilities, and solid waste disposal
and recycling.
The annual budget serves as the foundation for the City of Nacogdoches' financial planning and
control over spending. All city departments are expected to submit a request for appropriation to
the City prior to the end of May each year. The City Manager uses these requests as a starting
point for developing a proposed budget. The City Manager presents the proposed budget to the
City Council for review prior to September 1. The Council is required to hold public hearings on
the proposed budget and to adopt a final budget no later than September 27, three days before the
close of the City of Nacogdoches' fiscal year. The appropriated budget is prepared by fund,
function (e.g., public safety), department (e.g. police), and division (e.g. patrol). The City
Manager may make transfers of budgeted amounts within a department. The City Council must
approve any revisions that alter the total appropriated budget of any department. Budget-toactual comparisons are provided in the report for each individual governmental fund for which
an appropriated annual budget has been adopted. For the General Fund, this comparison is
presented as part of the basic financial statements. For governmental funds, other than the
general fund, with appropriated annual budgets, this comparison is presented in the combining
and individual fund statements and schedules.
Local economy
The City currently enjoys a stable economy that has been reflected by sales tax revenue
remaining fairly consistent despite the downward turn in the national economy. The economy of
the region is dominated by timber, cattle, oil and gas production and poultry production as well
as manufacturing. The City is also the home of Stephen F. Austin State University, which has an
enrollment of approximately 12,000. Stephen F. Austin State University is also the top employer
in the city.
Long-term financial planning
City Council established the following goals and objectives to be carried out during the next
several years.
•
•
Provide a sufficient and high quality work force.
• Maintain a competitive pay scale to ensure the City retains its employees and is
able to recruit a high quality work force.
• Provide a competitive employee benefit package.
Improve existing services to the citizens of Nacogdoches
• Continue to explore and develop programs to reduce crime
• Promote proactive programs and agreements to provide public safety
• Provide quality leisure opportunities by:
• Continuing trail development
• Providing more recreational programs
• Addressing aquatic facility needs
• Expanding offering of free computer services
• Increasing availability of public Internet access
• Creating City historic sites education programs
• Provide real time customer service via automated meter reading system
• Provide water supply to meet future needs including:
• Improvements to distribution system
•
•
•
Rehabilitation of wells and tanks
Maintain water quality at a high standard
Reduce wastewater overflows and blockages by implementation of a line camera
crew
•
•
Maintain and improve financial integrity of the City of Nacogdoches
• Retain high bond rating and financial reputation
• Maintain an unallocated fund balance of at least 25% of annual expenditures in
the General, Utility, and Sanitation Funds
• Explore new and innovative revenue sources
• Improve plan for replacement of fixed assets
• Improve purchase system
• Maintain competitive rates
Strong commitment to providing capital equipment and capital improvements
• Provide a funding level for capital equipment that meets the need of the City of
Nacogdoches
• Utilize a conservative portion of the City's unallocated reserve to fund needed
capital improvements
• Continue to set aside funds for the replacement of existing equipment
• Continue to schedule out future capital equipment and capital improvement needs
as funds are available
Financial Policies
The City has adopted a set of financial policies to guide the financial operations of the City.
Included in the policies are guidelines for accumulating and maintaining an operating position in
certain budgeted governmental funds such that annual expenditures shall not exceed annual
resources, including fund balances. The City shall accumulate and maintain an operating position
in all proprietary funds such that annual expenses shall not exceed annual resources, including
working cash balances. Other funds shall be fully self-supporting to the extent that the fund
balance or retained earnings of each fund shall be zero or greater.
At September 30, 2011 the City of Nacogdoches has accumulated the following amounts in
support of these policies
Fund
Policy
Fund
Amount
Total
Governmental Funds
General Fund - 25%
$5,136,145
Debt Service Fund
$
$
Other Governmental Funds
0
0
$ 7,206,563
$ 235,804
$ 2,298,382
$ 3,834,452
$ 1,150,806
$16,307,473
$ 3,190,953
Proprietary Funds:
Water/Wastewater Fund - 25%
Sanitation Fund - 25%
Major initiatives
Major improvements to the City's water distribution system should be completed in FY 2012,
which will address capacity and pressure issues.
In FY 2012 the City will continue construction on improvements to its wastewater collection
system, which will reduce the number of overflows.
The City is in the early stages of addressing drainage issues along the Lanana creek by acquiring
property in the flood plan so detention ponds can be constructed to alleviate flooding.
The City is in the early stages of improving its trail system by expanding the trail system to
include a trail along the Banita creek, which will connect to the Lanana Creek Trail.
Awards and Acknowledgements
The City received the GFOA's Distinguished Budget Presentation Award for its budget
document for the fiscal year 2011. In order to qualify for the Distinguished Budget Presentation
Award, the City's budget document was judged to be proficient in several categories, including
as a policy document, financial plan, operation guide, operation guide, and communication
device. This is the eleventh consecutive year that the City has received the award.
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
Nacogdoches for its comprehensive annual financial report for the fiscal year ended September
30, 2010. In order to be awarded a Certificate of Achievement, a government must publish an
easily readable and efficiently organized comprehensive annual financial report. This report
must satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
comprehensive annual financial report continues to meet the Certificate of Achievement
Program's requirements and we are submitting it to the GFOA to determine its eligibility for
another certificate.
The preparation of this report could not have been accomplished without the efficient and
dedicated services of the entire staff of the Finance department. We would like to express our
appreciation to all members of the departments who assisted and contributed to the preparation
of this report. We would also like to thank the Mayor and City Council for their interest and
support in planning and conducting the financial operations of the City in a responsible and
progressive manner.
Respectively submitted,
fin Jeffer;
City Manager
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Nacogdoches
Texas
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30,2010
A Certificate of Achievement for Excellence in Financial
Reportingis presentedby the GovernmentFinance Officers
Association oftie United States and Canada to
governmentunits and public employee retirement
systems whe^ coniprehensivc annual financial
reports (CAFRs) achievethe highest
standards In government accounting
and financialreporting.
tfL^^Jk*^
Executive Director
1*
•*l
2010 - 2011 ORGANIZATION CHART
Staff Organizational Chart
Nacogdoches Citizens
Mayor & City Commission
—
Boards & Commissions
— City Attorney
— City Judge
—
Health Officer
City Manager
Deputy City Manager
City Secretary
— Elections
— Grants
— Municipal Courts
— Records
—
City Engineer
Capitol Improvements
— Engineering
— G.I.S. Mapping
— Traffic
Fire
Fire & Rescue
E
—
Airport
Finance
Fire Marshall
—
—
—
—
—
Accounting
Auditing
Billing Services
Budget
Meter Reading
Payroll
— Purchasing
Safety
Historic Sites
- Human Resources
I
Employee Benefits
I
Personnel
Insurance
—
Main Street
Planning & Zoning
— Animal Control
Building Maintenance
— Code Enforcement
— Information Technology
Library
'
Parks & Recreation
I
Cementery
I
Recreation
Parks & Trails
— Health Services
— Housing
— Inspections
Public Works & Sanitation
— Land Use Plans
— Drainage
Garage
— Planning
— Solid Waste
1— Police
E
Library Services
Dispatch
Investigation
Patrol
— Streets
Water Utilities
I
Distribution &Collection
•
Treatment
Production
Revised: 10/1/2008
%
j*
LIST OF PRINCIPAL OFFICIALS
SEPTEMBER 30, 2011
Elected Officials
Name
Office
Roger Van Horn
William Sanders, Jr.
David Norton
Mayor
Mayor Pro-Tern
Vice Mayor Pro-Tern
Bob Dunn
Council Member
Shelley Brophy
Council Member
Appointed Officials
Name
Position
Jim Jeffers
Lila Fuller
Jack Sparks
City Manager
City Secretary
Director of Finance
10
Financial Section
11
12
Halls, Johnson, McLemore, Redfield & Rodrigues, LLP
CERTIFIED PUBLIC ACCOUNTANTS
Michael Hails, cpa
AREGISTERED LIMITED LIABILITY PARTNERSHIP
1329 N.University Dr., Suite A3, Nacogdoches, Texas 75961
Phone: (936) 564-8186 Fax: (936) 564-3811 Web Site: hjmrr.com
TeSumore; cpa
j.d. Redfield! cpa
Kenneth Rodrigues, cpa, p.c.
Independent Auditor's Report
City Council
202 E. Pilar Street
Nacogdoches, Texas 75963
Members of the City Council:
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of the City of Nacogdoches,
Texas (the "City"), as of and for the year ended September 30, 2011, which collectively comprise the
City's basic financial statements as listed in the table of contents. These financial statements are the
responsibility of the City's management. Our responsibility is to express opinions on these financial
statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes assessing the accounting principles
used and the significant estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, each major fund,
and the aggregate remaining fund information of the City of Nacogdoches, Texas, as of September 30,
2011, and the respective changes in financial position, and cash flows, where applicable, thereof and the
respective budgetary comparison for the General Fund for the year then ended in conformity with
accounting principles generally accepted in the United States of America.
As discussed in the notes to the financial statements, the City adopted the provisions of Governmental
Accounting Standards Board ("GASB") Statement No. 54, "Fund Balance Reporting and Governmental
Fund Type Definitions"tor the year ended September 30, 2011.
In accordance with Government Auditing Standards, we have also issued our report dated February 14,
2012, on our consideration of the City's internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on internal control
over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards and should be considered in assessing the results of
our audit.
13
Management's discussion and analysis on pages 15 through 24 is not a required part of the basic
financial statements but are supplementary information required by accounting principles generally
accepted in the United States of America. We have applied certain limited procedures, which consisted
principally of inquiries of management regarding the methods of measurement and presentation of the
required supplementary information. However, we did not audit the information and express no opinion on
it.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City's basic financial statements. The introductory section, combining statements, budgetary
comparison schedules, and statistical section are presented for purposes of additional analysis and are
not a required part of the basic financial statements. The accompanying schedule of expenditures of
federal awards is presented for purposes of additional analysis as required by U.S. Office of Management
and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and is
also not a required part of the basic financial statements. The combining statements, budgetary
comparison schedules, and the schedule of expenditures of federal awards have been subjected to the
auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly
stated in all material respects in relation to the basic financial statements taken 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 express no opinion on them.
Respectfully submitted,
HALLS, JOHNSON, McLEMORE, REDFIELD & RODRIGUES, LLP
February 14, 2012
14
City of Nacogdoches
Management's Discussion and Analysis
As management of the City of Nacogdoches, we offer readers of these financial statements this narrative
overview and analysis of the financial activities of the City of Nacogdoches (the City) for the fiscal year
ended September 30, 2011.
Financial Highlights





The assets of the City exceeded its liabilities at the close of the most recent fiscal year by
$108,099,292 (net assets). Of this amount, $31,828,877 (unrestricted net assets) may be used to
meet the government's ongoing obligations to citizens and creditors.
The City's total net assets increased by $6,956,322 for the year ended September 30, 2011,
compared to an increase of $5,309,622 for the year ended September 30, 2010.
As of the close of the current fiscal year, the City’s governmental funds reported combined ending
fund balances of $10,801,602.
At the end of the current fiscal year, unassigned fund balance for the general fund was
$7,372,947, or 36.36 percent of total general fund expenditures.
The City’s total debt decreased by $2,320,113 during the current fiscal year.
Overview of the Financial Statements
This discussion and analysis are intended to serve as an introduction to the City’s basic financial
statements. The City’s basic financial statements comprise three components: 1) government-wide
financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report
also contains other supplementary information in addition to the basic financial statements themselves.
Government-wide financial statements. The government-wide financial statements are designed to
provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector
business.
The statement of net assets presents information on all of the City’s assets and liabilities, with the
difference between the two reported as net assets. Over time, increases or decreases in net assets may
serve as a useful indicator of whether the financial position of the City is improving or deteriorating.
The statement of activities presents information showing how the City's net assets changed during the
most recent fiscal year. All changes in the net assets are reported as soon as the underlying event giving
rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses
are reported in this statement for some items that will only result in cash flows in future fiscal periods
(e.g., uncollected taxes and earned but unused vacation leave).
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 (businesstype activities). The governmental activities of the City include general government, public safety, health
and welfare, culture and recreation, and highways and streets. The business-type activities of the City
include a water and sewer operation and a sanitation collection and disposal operation.
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 three categories: governmental funds,
proprietary funds, and fiduciary 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 evaluating a government's near-term financing
requirements.
15
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By doing
so, readers may better understand the long-term impact of the government's near-term financing
decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues,
expenditures, and change in fund balances provide a reconciliation to facilitate this comparison between
governmental funds and governmental activities.
The City maintains thirteen individual governmental funds. 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 and the debt service fund, both of which are considered to
be major funds. Data from the other governmental funds are combined into a single, aggregated
presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form
of combining statements elsewhere in this report.
The City adopts an annual appropriated budget for its general fund. A budgetary comparison statement
has been provided for the general fund to demonstrate compliance with this budget.
Proprietary funds. The City maintains three different types of proprietary funds. Proprietary 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 its water and sewer operation, for its sanitation
collection and disposal operation, and for its airport fuel operations. Internal service funds are an
accounting device used to accumulate and allocate costs internally among the City’s various functions.
The City uses internal service funds to account for its purchase of equipment for the general fund.
Because this service benefits governmental rather than business-type functions, it has been included
within governmental activities in the government-wide financial statements.
Proprietary funds provide the same type of information as the government-wide financial statements, only
in more detail. The proprietary fund financial statements provide separate information for the water and
sewer operation and for the sanitation collection and disposal operation, both of which are considered to
be major funds of the City. Conversely, the internal service fund is a single, aggregated presentation in
the proprietary fund financial statements. Data for the internal service fund is provided in the form of
combining statements elsewhere in this report.
Notes to the financial statements. The notes provide additional information that is essential to a full
understanding of the data provided in the government-wide and fund financial statements.
Combining statements. The combining statements referred to earlier in connection with non-major
governmental funds are presented immediately following the notes.
16
Government-wide Financial Analysis
As noted earlier, net assets may serve over time as a useful indicator of a government's financial position.
In the case of the City of Nacogdoches, assets exceeded liabilities by $108,099,292 at the close of the
most recent fiscal year.
By far the largest portion of the City’s net assets (59 percent) reflects its investment in capital assets (e.g.,
land, buildings, machinery, and equipment); less any related debt used to acquire those assets that are
still outstanding. The City uses these capital assets to provide services to the 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 used to liquidate these
liabilities.
Net Assets
(in thousands)
Governmental Activities
2011
Current and other assets
$
Capital assets
Total assets
Long-term liabilities
$
37,053
12,402
2011
$
36,012
Total
2010
$
32,824
2011
$
50,804
2010
$
45,226
38,524
89,502
88,943
126,555
127,467
$
51,845
$
50,926
$ 125,514
$ 121,767
$ 177,359
$ 172,693
$
11,273
$
11,972
$
$
$
$
Other liabilities
Total liabilities
14,792
Business-Type Activities
2010
887
851
56,768
332
58,224
503
68,041
1,219
70,196
1,354
$
12,160
$
12,823
$
57,100
$
58,727
$
69,260
$
71,550
$
27,347
$
28,032
$
36,261
$
33,004
$
63,608
$
61,036
Net assets:
Invested in capital assets,
net of related debt
Restricted
3,420
1,778
9,242
11,686
12,662
Unrestricted
8,918
8,293
22,911
18,350
31,829
26,643
63,040
$ 108,099
$ 101,143
Total net assets
$
39,685
$
38,103
$
68,414
$
13,464
A portion of the City’s net assets (11.7%) represents resources that are subject to external restrictions on
how they may be used. The remaining balance of unrestricted net assets, $31,828,877, may be used to
meet the City's ongoing obligations to citizens and creditors.
At the end of the current fiscal year, the City is able to report positive balances in all three categories of
net assets, both for the government as a whole, as well as for its separate governmental and businesstype activities. The same situation held true for the prior fiscal year.
17
Governmental activities. Governmental activities increased the City’s net assets by $1,582,429. Key
elements of this increase are as follows:



The increase in property tax assessed values.
A new gas franchise agreement.
Increase in sales tax receipts.
Changes in Net Assets
(in thousands)
2011
2010
2011
Total
2010
2011
2010
Revenues:
Program revenues:
Charges for services
$
2,051
$
1,846
$
25,296
$
23,415
$
27,347
$
25,261
Operating grants & contributions
568
424
-
-
568
424
Capital grants & contributions
614
26
-
-
614
26
7,551
7,387
-
-
7,551
7,387
Sales taxes
5,588
5,149
-
-
5,588
5,149
Franchise taxes
2,742
2,563
-
-
2,742
2,563
Other taxes
1,264
1,030
-
-
1,264
1,030
142
137
-
-
142
137
52
34
97
54
149
88
425
430
-
-
425
430
General revenues:
-
Property taxes
Penalties and interest on taxes
Investment earnings
Miscellaneous revenue
Gain on sale of capital assets
Total revenues
12
12
137
28
149
40
21,009
19,038
25,530
23,497
46,539
42,535
Expenses:
General government
4,203
4,138
-
-
4,203
4,138
13,163
12,480
-
-
13,163
12,480
Highways & streets
2,658
2,630
-
-
2,658
2,630
Cultural & recreation
2,452
2,558
-
-
2,452
2,558
Economic development
1,246
1,046
-
-
1,246
1,046
649
Public safety
Debt service
415
649
-
-
415
Capital Outlays
-
-
-
-
-
-
Water & sewer
-
-
12,119
11,245
12,119
11,245
Sanitation
-
-
2,774
2,460
2,774
2,460
Airport
-
-
565
421
565
421
24,137
23,501
15,458
14,126
39,595
37,627
6,944
4,908
-
4,908
Total expenses
Increase in net assets
(3,128)
(4,463)
10,072
9,371
Transfers
before transfers
4,721
4,978
(4,721)
(4,978)
Increase in net assets
1,593
5,351
4,393
6,944
23
700
12
402
63,040
57,947
101,143
95,833
63,040
$ 108,099
$ 101,143
Prior period adjustment
Net assets - beginning
Net assets - ending
515
(11)
(298)
38,103
$
39,685
37,886
$
38,103
18
$
68,414
$
Business-type activities. Business-type activities increased the City’s net assets by $5,373,898. Key
elements of this increase are as follows:

Charges for services increased from $23.4 million in 2010 to $25.3 million in 2011. A
graphical comparison of the revenues and expenses for 2011 follows:
REVENUES BY SOURCE- BUSINESS-TYPE ACTIVITIES
Investment Earnings, 0.4%
Gain on Sale of Assets, 0.5%
Charges for Service
Investment Earnings
Gain on Sale of Assets
Charges for Service, 99.1%
19
Governmental funds. The focus of the City’s governmental funds is to provide information on near-term
inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s
financing requirements. In particular, unreserved fund balance may serve as a useful measure of a
government's net resources available for spending at the end of the fiscal year.
PROGRAM REVENUES AND EXPENSES - GOVERNMENTAL ACTIVITES
$14,000
Revenues
$12,000
Expenses
$10,000
$8,000
$6,000
$4,000
$2,000
$0
General
Government
Public Safety
Highways and
Streets
Culture and
Recreation
Economic
Development &
Assistance
Interest on
Long-term Debt
REVENUES BY SOURCE - GOVERNMENTAL ACTIVITIES
Investment
Earnings
0.2%
Miscellaneous
Revenues
2.0%
Penalties and
Interest
0.7%
Gain on Sale of
Capital Assets
0.1%
Charges for
Services
9.8%
Other Taxes
6.0%
Operating
Grants
2.7%
Capital Grants
2.9%
Franchise
Taxes
13.1%
Property Taxes
35.9%
Sales Taxes
26.6%
At September 30, 2011, the City’s governmental funds reported combined ending fund balances of
$10,801,602. Of the $10,801,602 fiscal year 2011 fund balance, $624,864 (5.8%) is classified as
nonspendable because it is invested in long-term loans receivable and, therefore, is not in spendable
form, $2,795,792 (25.9%) is classified as restricted to indicate that it can only be spent for specific
purposes as stipulated by external resource providers (for example, through debt covenants, grant
agreements, or by laws or regulations of other governments), $7,999 is classified as committed to
indicate that it has been set aside for specific purposes by resolution of the City Council, and the
20
remaining $7,372,947 is unassigned. Unassigned fund balances are technically available for any
purpose, but are maintained at targeted levels in accordance with sound financial management practices.
The general fund is the chief operating fund of the City of Nacogdoches. At the end of the current fiscal
year, unassigned fund balance of the general fund was $7,372,947, while total fund balance reached
$7,611,732. As a measure of the general fund's liquidity, it may be useful to compare both unassigned
fund balance and total fund balance to total expenditures. Unassigned fund balance represents 36.3
percent of total general fund expenditures, while total fund balance represents 37.5 percent of that same
amount.
A comparison of key governmental revenues follows:
Revenues
Governmental Funds
(in thousands)
2011
7,537
5,588
2,742
1,264
330
1,489
232
1,182
38
477
$ 20,879
Property tax
Sales tax
Franchise tax
Hotel & motel tax
Licenses & permits
Fines & forfeitures
Intergovernmental
Investment earnings
Other
Total



$
2010
7,350
5,148
2,563
1,030
370
1,217
260
450
24
504
$ 18,916
$
Property tax revenue increased as a result of an increase in assessed values.
Sales tax revenue reflected an increase which was a result of a turnaround in the economy.
Gross receipts tax increased as a result of a settlement with Oncor regarding prior
underpayments found during a franchise fee audit performed at the request of the City.
The fund balance of the City’s general fund increased by $1,408,524 during the current fiscal year. The
key factor in this increase was as follows:


The increase in sales tax and franchise tax receipts.
Not filling vacant positions and replacing retiring employees at lower salaries
The debt service fund had a total fund balance of $235,804, all of which is reserved for the payment of
debt service. The net increase in fund balance during the current year in the debt service fund was
$1,594.
Proprietary funds. The City’s proprietary funds provide the same type of information found in the
government-wide financial statements, but in more detail.
Unrestricted net assets of the water and sewer operations at the end of the year amounted to
$19,427,294, total unrestricted net assets for the sanitation operation amounted to $3,259,054, and total
unrestricted net assets for the airport operation amounted to $5,870. The total changes in net assets for
all three funds were $4,167,358, $1,222,395, and ($9,284), respectively, before prior period adjustments.
Other factors concerning the finances of these three funds have already been addressed in the
discussion of the City’s business-type activities.
21
General Fund Budgetary Highlights
The difference between total expenditures and the final amended budget was $862,280 as a result of
budget amendments in the general fund during the year ended September 30, 2011.
Capital Asset and Debt Administration
Capital assets. The City’s investment in capital assets for its governmental and business-type activities
as of September 30, 2011 and 2010, amounted to $126,555,464 and $126,302,665 (net of accumulated
depreciation), respectively. This investment in capital assets includes land, building and system
improvements, machinery and equipment, park facilities, roads, highways, and bridges.
Major capital asset events during the current fiscal year included the following:


Continuing construction on new sewer line, which is estimated to cost $1.7 million
Continuing construction on pump station, water storage tank improvements and water line
improvements, which is estimated to cost $8.2 million
Capital Assets
(in thousands)
2011
Land
$
Buildings and systems
2010
3,611
$
2011
3,611
$
Total
2010
1,535
$
2011
1,510
$
2010
5,146
$
5,121
14,727
14,318
119,877
116,972
134,604
3,220
3,220
3,914
3,913
7,134
7,133
Machinery and equipment
10,909
10,809
7,531
6,929
18,440
17,738
Infrastructure
45,934
45,934
-
-
45,934
45,934
935
905
22,038
20,717
22,973
21,622
Improvements other than buildings
Construction in progress
Accumulated depreciation
Total assets
(42,283)
$
37,053
(40,273)
$
38,524
(65,393)
$
89,502
(62,262)
$
87,779
131,290
(107,676)
$ 126,555
(102,535)
$ 126,303
Additional information on the City’s capital assets and capital commitments can be found in note F –
Capital Assets in the financial statements.
Long-term obligations. At the end of the current fiscal year, the City of Nacogdoches had total bonded
debt outstanding of $62,770,000.
Outstanding Long-Term Obligations
(in thousands)
2011
General obligation bonds
$
Revenue bonds
2010
9,610
$
2011
10,365
$
Total
2010
1,040
$
2011
2,045
$
2010
10,650
$
12,410
-
-
52,120
52,615
52,120
52,615
96
127
81
115
177
242
Capital lease payable
-
-
-
-
-
-
Meter deposits
-
-
135
139
135
139
1,567
1,480
270
250
1,837
1,730
-
-
3,122
3,060
3,122
3,060
Bond premium (discount)
Compensated absences payable
Landfill closure & post-closure
Total long-term obligations
$
11,273
$
11,972
$
56,768
$
58,224
$
68,041
$
70,196
The City’s total debt decreased by $2,320,113 during the current fiscal year. Additional information on the
City’s long-term obligations can be found in note H – Long-Term Obligations in the financial statements.
The City of Nacogdoches maintained an "AA-" rating for general obligation bonds and an “A+” rating for
revenue bonds from Standard & Poor's.
22
Economic Factors and Next Year's Budgets and Rates
The City of Nacogdoches considered many factors when setting the fiscal year 2011-2012 budget, tax
rates, and fees that would be charged for business-type activities. One of these factors was the economy.
With a recent history of rebounding local sales tax receipts, the City projected a 3 percent increase in
sales tax receipts from FY 2010-2011 to FY 2011-2012. The City decreased the property tax rate in the
2011-2012 budget to the effective tax rate because of an increase in assessed values. The City’s 20112012 budget appropriated reserve funds to replace or repair aging infrastructure, and at the same time,
still maintain a 25% reserve requirement.
The 2011-2012 General Fund operating expenditures budget increased by 1.85% or $391,291 from FY
2010-2011 adopted budget.
The 2011-2012 budget for the Water and Sewer fund needed no increase in fees to fund operational
costs.
The 2011-2012 budget for the Sanitation fund needed no increase in fees to fund operational cost.
The total operating budget for 2011-2012 is on target for both revenues and expenditures at the issuance
of these statements.
Request for Information
This financial report is designed to provide a general overview of the City's finances for all those with an
interest in the government's finances. Questions concerning any of the information provided in this report
or request for additional financial information should be addressed to the Office of the Finance Director,
202 E. Pilar, City of Nacogdoches, Texas, 75961.
23
24
Basic Financial Statements
25
26
EXHIBIT A-1
STATEMENT OF NET ASSETS
SEPTEMBER 30, 2011
Governmental
Business-type
Activities
Activities
Total
ASSETS:
Cash and cash equivalents
J
11,216,684
$
19,512,754
$
30,729,438
Receivables (net of allowances for uncollectibles):
Property taxes
347,025
52,637
1,054,354
114,292
Customer accounts
Intergovernmental
Other
Internal balances
--
(186,749)
Inventories
186,749
29,415
-
624,864
90,636
1,035,889
29,415
624,864
1,126,525
1,478,474
12,297,358
13,775,832
3,611,382
9,945,598
1,605,503
1,549,101
19,406,390
935,450
51,845,641
1,535,255
61,250,934
1,425,216
3,253,090
5,146,637
71,196,532
3,030,719
4,802,191
19,406,390
22,972,995
177,359,763
--
Advances for economic development
Deferred charges
347,025
2,988,473
1,068,435
114,292
—
2,935,836
14,081
-
Restricted Assets:
Capital Assets (net of accumulated depreciation):
Land
Utility system and buildings
Improvements other than buildings
Infrastructure
Total Assets
~
22,037,545
125,514,122
LIABILITIES:
Accounts payable
Accrued expenses
Accrued interest payable
82,927
599,783
33,238
Unearned revenue
24,442
149,686
143,824
13,954
107,369
749,469
177,062
13,954
170,950
896,507
10,376,751
12,160,156
3,306,303
53,462,106
57,100,315
4,202,810
63,838,857
69,260,471
27,347,322
36,261,278
63,608,600
17,725
235,804
377,989
560,960
5,214,920
4,026,239
--
Other liabilities
170,950
~
Noncurrent Liabilities-
Amounts due within one year
Amounts due in more than one year
Total Liabilities
NET ASSETS
Invested in Capital Assets, Net of Related Debt
Restricted For:
State and federal programs
Debt service
Construction
Law enforcement
Purposes of trustees
Nonexpendable
Economic development
Unrestricted
Total Net Assets
>
The accompanying notes are an integral part of this statement.
27
271,178
1,957,000
8,917,507
39,685,485
17,725
5,450,724
4,404,228
560,960
—
—
271,178
1,957,000
31,828,877
—
--
22,911,370
$
68,413,807
$
108,099,292
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2011
Program Revenues
Operating
Capital
Charges for
Grants and
Grants and
Services
Contributions
Contributions
Expenses
Functions/Programs
PRIMARY GOVERNMENT:
Governmental Activities:
General Government
$
4,202,671
Public Safety
Highways and Streets
$
Culture and Recreation
Economic Development and Assistance
Interest on Long-term Debt
Total Governmental Activities
$
$
454,272
567,911
1,819,483
13,162,688
2,658,599
2,451,813
1,245,874
414,976
24,136,621
-
-
-
231,946
-
-
-
159,436
-
--
-
-
613,708
567,911
2,051,429
Business-type Activities:
12,119,007
2,774,451
565,029
15,458,487
Water and Sewer
Sanitation
Airport
Total Business-type Activities
Total Primary Government
$
39,595,108
$
19,139,784
5,683,453
473,232
25,296,469
27,347,898
General Revenues:
Property Taxes
Sales Taxes
Franchise Taxes
Other Taxes
Penalties and Interest
Investment Earnings
Miscellaneous Revenue
Gain on Sale of Capital Assets
Transfers
Total General Revenues
Change in Net Assets
Net Assets - Beginning
Prior Period Adjustment
Net Assets - Restated
Net Assets - Ending
28
__
_.
-
-
--
--
-
~
$
567,911
$
613,708
EXHIBIT A-2
Net (Expense) Revenue and Changes in Net Assets
5
Governmental
Business-type
Activities
Activities
(4,202,671)
(10,321,022)
(2,658,599)
(2,219,867)
(1,086,438)
(414,976)
(20,903,573)
$
$
-
7,020,777
2,909,002
(4,202,671)
(10,321,022)
(2,658,599)
(2,219,867)
(1,086,438)
(414,976)
(20,903,573)
7,020,777
2,909,002
(91,797)
~
(91,797)
9,837,982
9,837,982
~
(20,903,573)
9,837,982
(11,065,591)
7,550,954
5,588,122
2,742,062
1,264,270
141,815
52,247
425,130
11,992
4,720,686
22,497,278
(4,720,686)
(4,486,780)
18,010,498
1,593,705
5,351,202
6,944,907
38,103,056
63,039,908
22,697
63,062,605
101,142,964
11,421
101,154,385
-
-
~
~
96,787
--
137,119
38,091,780
39,685,485
7,550,954
5,588,122
2,742,062
1,264,270
141,815
149,034
425,130
149,111
„
(11,276)
>
Total
$
68,413,807
-
$
108,099,292
29
EXHIBIT A-3
BALANCE SHEET - GOVERNMENTAL FUNDS
SEPTEMBER 30, 2011
Debt
Other
Total
General
Service
Governmental
Governmental
Fund
Fund
Funds
Funds
ASSETS
Property taxes receivable
I
Customer accounts receivable
Other receivables
Due from other governments
Due from other funds
$
J
$
-
8,210
-
-
354,289
-
-
-
235,804
235,804
$
$
«
--
242,227
8,778,789
1,297,939
--
-
Cash - Restricted
Total Assets
6,964,336
347,025
44,427
114,292
700,065
366,417
$
624,864
1,000,443
3,285,745
$
8,262,275
347,025
52,637
114,292
1,054,354
366,417
624,864
1,478,474
12,300,338
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Accrued expenditures
$
82,927
464,956
7,592
170,950
440,632
1,167,057
Due to other funds
Due to other governments
Unearned revenue
Total Liabilities
331,679
82,927
470,218
334,009
170,950
440,632
1,498,736
624,864
624,864
377,990
322,175
1,114,079
218,057
271,178
17,724
235,804
377,990
560,960
1,114,079
218,057
271,178
17,724
5,262
326,417
-
~
Fund Balances:
Nonspendable Fund Balances:
Long-Term Loans Receivable
Restricted Fund Balances:
Retirement of Long-Term Debt
235,804
-
Construction
"
Court Appointed Balances
238,785
Hotel/Motel Tax
-
-
Economic Development
Sunset Trust
Federal & State Grants
-
--
--
-
--
--
~
—
—
—
«
Committed Fund Balances:
Health & Welfare
Unassigned
7,372,947
7,611,732
Total Fund Balances
Total Liabilities and Fund Balances
>
8,778,789
30
7,999
2,954,066
235,804
$
7,999
7,372,947
10,801,602
-
-
235,804
$
3,285,745
$
12,300,338
exhibit a-4
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET ASSETS
SEPTEMBER 30, 2011
Total fund balances - governmental funds balance sheet
$
10,801,602
Amounts reported for governmental activities in the statement of net assets
("SNA") are different because:
Capital assets used in governmental activities are not financial resources
and therefore, are not reported in the funds.
36,560,471
Other long-term assets are not available as current period resources and are not
reported in the funds.
Property taxes receivable, net of allowance for uncollectible amounts
Amounts receivable for paving liens
347,025
93,606
Bond issuance costs that are amortized over the life of related debt
90,636
An internal service fund is used to charge the cost of health insurance to individual funds.
The governmental funds' share of the assets and liabilities of the internal service fund
are included in governmental activities in the statement of net assets.
726,890
An internal service fund is used for equipment acquisition and replacement. The
governmental funds' share of the assets and liabilities of the internal service fund are
included in governmental activities in the statement of net assets.
2,371,751
Long-term liabilities are not payable in the current period and are not reported in the funds.
Bonds payable
Unamortized bond premiums (discounts)
Compensated absences
(9,610,000)
(96,103)
(1,567,156)
(33,237)
Interest payable
Net assets of governmental activities - statement of net assets
31
$
39,685,485
EXHIBIT A-5
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES - GOVERNMENTAL FUNDS
Debt
Other
Total
General
Service
Governmental
Governmental
Fund
Fund
Funds
Funds
Revenue:
Taxes:
Property taxes
>
General sales taxes
Franchise taxes
Hotel/motel occupancy taxes
Licenses and permits
6,360,374
5,588,122
2,742,062
$
1,176,955
330,381
1,218,283
231,946
140,645
24,357
93,078
130,009
16,859,257
Fines and forfeitures
Penalties on tax collections
Investment earnings
Intergovernmental
Miscellaneous
Total revenues
-
1,264,270
-
-
--
270,819
~
-
-
1,170
10,876
1,088,541
204,310
2,839,986
-
2,942
-
-
1,179,897
7,537,329
5,588,122
2,742,062
1,264,270
330,381
1,489,102
231,946
141,815
38,175
1,181,619
334,319
20,879,140
-
--
-
$
$
--
Expenditures:
Current:
General government
Public safety
Highways and streets
3,964,379
12,443,558
1,699,845
2,190,928
Culture and recreation
Community development
--
Debt Service
155,770
1,227,391
-
1,178,303
~
6,362
20,305,072
4,193,276
13,021,070
1,699,845
2,346,698
1,227,391
1,178,303
6,362
23,672,945
-
-
-
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
228,897
577,512
-
-
-
-
1,178,303
2,189,570
1,594
650,416
(2,793,805)
(3,445,815)
Other financing sources (uses):
5,101,771
Transfers in
Total other financing sources (uses)
1,416,449
Fund Balances - Beginning
Fund Balances - Beginning as Restated
Fund Balances - Ending
6,203,208
32
1,594
533,338
1,951,381
234,210
2,424,079
8,861,497
$
234,210
235,804
(539,562)
(3,351)
--
6,195,283
7,611,732
4,745,186
-
(7,925)
>
5,284,748
--
4,862,264
Net Change in Fund Balances
182,977
(300,055)
(117,078)
__
(239,507)
Transfers out
(11,276)
2,420,728
$
2,954,066
8,850,221
$
10,801,602
exhibit a-6
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
SEPTEMBER 30, 2011
Net change in fund balances - total governmental funds
$
1,951,381
Amounts reported for governmental activities in the statement of activities
(MSOAM) are different because:
Capital outlays are not reported as expenses in the SOA:
General government
Public safety
Communitydevelopment
Capital outlay
186,076
342,127
30,051
6,362
The depreciation of capital assets used in governmental activities is not reported in the funds.
Certain property tax revenues are deferred in the funds. This is the change in these amounts this year.
(1,894,096)
13,627
Repayment of bond principal is an expenditure in the funds but is not an expense in the SOA.
The accretion of bond premiums, net of discounts, is not reported in the funds.
755,000
30,481
Bond issuance costs and similar itemsare amortized in the SOA but notin the funds.
Compensated absences are reported as the amount earned in the SOA butas the amount paid in the funds.
(24,191)
(87,141)
2,037
(Increase) decrease in accrued interest from beginning of period to end of period.
The net revenue (expense) of certain activities of internal service funds is
reported with the governmental activities.
281,991
Net assets of governmental activities - statement of net assets
33
$
1,593,705
EXHIBIT A-7
Page 1 of 2
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET (GAAP BASIS) AND ACTUAL
Variance with
Final Budget
Budgeted
Original
Positive
Amounts
(Negative)
Actual
Final
Revenue:
Taxes:
Property taxes
General sales taxes
Franchise taxes
Investment earnings
Intergovernmental
Miscellaneous
Total revenues
Expenditures:
General government:
City Council
City Manager
Municipal Court
City Secretary/Grant Administrator
Finance
Information Technology
Human Resources
Legal
Planning and Zoning
Purchasing and Warehouse
Main Street
Vehicle Maintenance
Non-Departmental
Restricted
Total General Government
Public Safety:
Police Department
Emergency Services
Fire Protection
Inspection
Animal Control
Total Public Safety
J
$
6,215,000
$
5,200,000
2,535,500
349,200
1,122,000
256,400
145,000
10,000
81,900
241,198
16,156,198
6,360,374
5,588,122
2,742,062
330,381
1,218,283
231,946
140,645
24,357
93,078
130,009
16,859,257
34,225
322,150
306,075
199,925
256,680
306,550
190,275
151,730
161,205
389,020
134,360
80,245
313,805
1,436,500
26,600
4,309,345
39,225
322,150
306,075
199,925
256,680
306,550
190,275
151,730
161,205
389,020
134,360
80,245
313,805
1,440,784
26,600
4,318,629
38,882
308,141
304,222
197,323
242,346
299,250
194,554
113,838
149,108
373,862
122,433
78,285
304,242
1,210,743
27,150
3,964,379
6,482,608
29,070
5,272,867
619,830
373,985
12,778,360
6,482,608
29,070
5,272,867
619,830
373,985
12,778,360
6,316,990
16,991
5,329,561
434,067
345,949
12,443,558
231,230
1,101,480
387,420
1,720,130
231,230
1,101,480
387,420
1,720,130
232,265
1,095,086
372,494
1,699,845
6,215,000
5,200,000
2,535,500
349,200
1,122,000
256,400
145,000
10,000
81,900
241,198
16,156,198
$
145,374
388,122
206,562
(18,819)
96,283
(24,454)
(4,355)
14,357
11,178
(111,189)
703,059
343
14,009
1,853
2,602
14,334
7,300
(4,279)
37,892
12,097
15,158
11,927
1,960
9,563
230,041
(550)
354,250
165,618
12,079
(56,694)
185,763
28,036
334,802
Highways and Streets:
Public Works
Street Maintenance
Engineering
Total Highways and Streets
34
(1,035)
6,394
14,926
20,285
EXHIBIT A-7
GENERAL FUND
Page 2 of 2
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET (GAAP BASIS) AND ACTUAL
Variance with
Final Budget
Budgeted Amounts
Original
Final
Actual
183,188
499,810
529,450
730,835
388,950
2,332,233
183,188
499,810
529,450
730,835
388,950
2,332,233
176,069
475,115
473,277
690,112
376,355
2,190,928
7,119
24,695
56,173
40,723
12,595
141,305
18,000
18,000
6,362
11,638
21,158,068
21,167,352
20,305,072
862,280
(5,001,870)
(5,011,154)
(3,445,815)
5,102,900
5,102,900
5,101,771
(142,030)
(142,030)
(239,507)
4,960,870
4,960,870
4,862,264
(1,129)
(97,477)
(98,606)
1,416,449
1,466,733
Positive
(Negative)
Culture and Recreation:
Historic Sites
Library
Recreation
Parks
Cemetery
Total Culture and Recreation
Capital Outlay
Total Expenditures
1,565,339
Other Financing Sources (Uses):
Transfers in
Transfers out
(41,000)
(50,284)
6,203,207
6,203,207
6,203,208
1
(7,925)
6,203,207
$
6,162,207
35
6,203,207
$
6,152,923
6,195,283
$
7,611,732
$
(7,925)
(7,924)
1,458,809
EXHIBIT A-8
PROPRIETARY FUNDS
SEPTEMBER 30, 2011
Enterprise
Enterprise
Nonmajor
Enterprise
Fund
Fund
Fund
Total
Internal
and Sewer
Sanitation
Airport
Enterprise
Service
Fund
Fund
Fund
Funds
Funds
Water
Current Assets:
Receivables (net of allowance for uncollectibles):
$
16,307,473
$
2,511,503
Accounts
Intergovernmental
Due from other funds
Inventories
$
421,805
-
-
-
-
-
-
18,818,976
Total Current Assets
3,190,953
14,329
$
2,528
14,081
7,592
29,415
67,945
3,612,758
19,512,755
$
2,935,836
2,954,410
-
14,081
7,592
29,415
22,499,679
-
-
-
2,954,410
Noncurrent Assets:
Restricted Assets:
Construction Funds:
Revenue Bond Interest & Sinking Funds:
4,026,239
1,862,209
4,026,239
-
-
-
-
-
-
-
1,862,209
-
Revenue Bond Reserve Funds:
3,496,535
3,496,535
-
Landfill:
2,912,375
-
Total Restricted Assets
Unamortized bond charges
9,384,983
1,035,889
2,912,375
717,701
74,120,300
45,756,713
817,554
2,912,375
12,297,358
1,035,889
-
-
-
-
-
-
Capital Assets (net of accumulated depreciation):
Land
Water system, building, and equipment
Sewer system, building, and equipment
Buildings
Office furniture and equipment
Dumpsters
Less accumulated depreciation
Total Capital Assets
Total Assets
-
(61,522,724)
(3,870,056)
84,932,088
95,352,960
4,569,952
7,482,327
-
$
-
22,012,773
3,847,325
Total Noncurrent Assets
-
2,787,583
4,216,381
593,718
24,772
-
114,171,936
36
$
11,095,085
1,535,255
74,120,300
45,756,713
2,787,583
8,063,706
593,718
22,037,545
-
-
-
-
-
-
-
-
2,754,774
-
-
(2,261,821)
492,953
492,953
89,502,040
102,835,287
-
-
67,945
-
(65,392,780)
-
$
-
$
125,334,966
$
3,447,363
EXHIBIT A-8
PROPRIETARY FUNDS
SEPTEMBER 30, 2011
Enterprise
Enterprise
Nonmajor
Enterprise
Fund
Fund
Fund
Total
Internal
and Sewer
Sanitation
Airport
Enterprise
Service
Fund
Fund
Fund
Funds
Funds
Water
LIABILITIES AND NET ASSETS
LIABILITIES
Current Liabilities:
Accounts payable
Accrued expenses
$
24,442
$
96,741
69,800
121,183
69,800
$
Due to other funds
Deferred revenue
Total Unrestricted Current Liabilities
Current Liabilities Payable from Restricted Assets:
Revenue bonds payable
General obligation bonds payable
Accrued interest payable
Total Current Liabilities Payable
4,448
40,000
13,954
58,402
$
2,245,000
1,040,000
143,824
$
129,565
129,565
2,245,000
1,040,000
143,824
3,428,824
3,550,007
From Restricted Assets
Total Current Liabilities
24,442
170,989
40,000
13,954
249,385
-
3,428,824
3,678,209
-
58,402
69,800
-
129,565
Noncurrent Liabilities:
Revenue bonds payable
General obligation bonds payable
Accrued compensated absences
Customer meter deposits payable
49,955,762
49,955,762
170,745
135,646
Landfill closure costs
50,262,153
53,812,160
Total Noncurrent Liabilities
Total Liabilities
74,331
3,673
3,121,949
3,196,280
3,266,080
3,673
62,075
248,749
135,646
3,121,949
53,462,106
57,140,315
5,870
5,870
36,261,274
4,026,239
5,214,920
22,692,218
68,194,651
-
129,565
NET ASSETS
Investment in capital assets, net of related debt
31,691,323
4,026,239
5,214,920
19,427,294
Restricted for debt service
Restricted for construction
Unrestricted net assets
Total Net Assets
$
60,359,776
4,569,951
$
3,259,054
7,829,005
$
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds
Net assets of business-type activities
37
$
219,156
68,413,807
492,954
$
2,824,844
3,317,798
EXHIBIT A-9
STATEMENT OF REVENUES, EXPENSES, AND CHANGES
IN FUND NET ASSETS - PROPRIETARY FUNDS
Enterprise
Enterprise
Nonmajor
Enterprise
Fund
Fund
Fund
Total
Internal
and Sewer
Sanitation
Airport
Enterprise
Service
Fund
Fund
Fund
Funds
Funds
Water
OPERATING REVENUES
Charges for sales and services:
Water
I
Sewer treatment
8,900,505
$
<
9,364,659
Sanitation charges
Landfill gate receipts
Charges for sales and services
Equipment rental
Employer premiums
Employee premiums
Total charges for sales and services
I
-
-
4,827,395
777,753
-
-
82,494
-
-
-
458,120
-
-
-
-
-
-
-
18,347,658
8,900,505
9,364,659
-
5,605,148
$
-
4,827,395
777,753
540,614
-
-
-
$
-
-
-
57,349
570,153
1,317,624
388,276
2,333,402
-
458,120
24,410,926
Other:
Tapping fees - water
Tapping fees - sewer
56,614
4,970
306,956
56,800
366,786
19,139,784
Late fees
Inspections
Total Operating Revenues
-
-
-
-
-
-
-
-
56,614
4,970
306,956
56,800
460,204
25,296,470
15,112
473,232
78,306
5,683,454
_
-
-
-
42,411
2,375,813
OPERATING EXPENSES
Customer service
761,978
2,258,747
1,142,936
2,922,289
Water production
Water distribution & collection
Wastewater treatment
264,778
2,889,678
10,240,406
207,909
611,424
2,766,224
564,188
761,978
2,258,747
1,142,936
2,922,289
1,086,614
860,277
564,188
472,687
3,501,102
13,570,818
8,899,378
2,917,230
(90,956)
11,725,652
260,110
86,589
26,009
10,056
111,110
96,787
137,119
14,071
3,043
Sanitation collection
.
-
Cost of fuel
-
Non-departmental
Depreciation and amortization
Total Operating Expenses
Operating Income
-
-
-
-
-
1,086,614
860,277
-
Sanitation disposal
-
-
-
564,188
-
-
-
-
-
-
-
-
-
1,830,977
284,726
2,115,703
NON-OPERATING REVENUES (EXPENSES)
Interest revenue
Gain on sale of assets
Interest expense
Total Non-operating Revenues (Expenses)
(1,858,402)
(1,745,804)
Income before Transfers
Total Net Assets - Beginning
Total Net Assets - Ending
-
>
(90,814)
21,000
(1,837,000)
4,167,358
1,222,396
(9,284)
56,169,721
22,697
60,359,776
6,606,609
15,154
355,314
38
252,724
3,065,074
-
3>
-
5,870
$
(29,267)
$
_
(24,500)
5,380,470
'ice fund activities related to enterprise funds.
Change in net assets of business-type activities.
277,224
(5,076,000)
-
-
7,829,005
-
17,114
10,101,156
81,530
(3,239,000)
$
(1,858,402)
(1,624,496)
-
142
3,038,396
252,784
Transfers out
-
121,166
7,153,574
Transfers in
142
5,351,203
3,317,798
EXHIBIT A-10
STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30. 2011
Enterprise
Enterprise
Nonmajor
Enterprise
Fund
Fund
Fund
Total
Internal
and Sewer
Sanitation
Airport
Enterprise
Service
Fund
Fund
Fund
Funds
Funds
Water
Cash Flows from Operating Activities:
Cash received from customers
$
18,871,764
$
5,630,930
$
458,649
$
24,961,343
$
488,036
Cash receipts (payments) for quasi-external
operating transactions with other funds
1,887,777
Cash payments to employees for services
Cash payments to suppliers for goods &services
Net Cash Provided (Used) by Operating Activities
(2,664,661)
(4,808,455)
(1,011,199)
(1,170,274)
11,398.648
3,449,457
(2,986.216)
(1,816,000)
(2,986,216)
(1,816,000)
(129,286)
(405,310)
(75,947)
(3,805,146)
(6,384,039)
(1,793,206)
14,772,158
582,607
81,530
(4,720,686)
(24,500)
81,530
(4,720,686)
(24,500)
Cash Flows from Non-capital Financing Activities:
Transfers from (to) other funds
Net Cash Provided (Used) by
Non-capital Financing Activities
Cash Flows from Capital and
Related Financing Activities:
Proceeds from issuance of long-term debt
Principal and interest paid
Acquisition or construction of capital assets
Proceeds from sale of capital assets
Change in long-term landfill closure costs
Net Cash Provided (Used) for
Capital & Related Financing Activities
1,680.000
1,680,000
(4,948,571)
(4,627,413)
(4,948,571)
(5,246,333)
(146,563)
132,416
62,165
159,242
5,707
(424,339)
(8,293,497)
-
(618,920)
26,826
(7,869,158)
62,165
(140,856)
Cash Flows from Investing Activities:
Interest and dividends on investments
Net Cash Provided (Used) for Investing Activities
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Year
Reconciliation of Operating Income to Net Cash
Provided by Operating Activities:
Operating Income (Loss)
Adjustments to Reconcile Operating Income to
Net Cash Provided by Operating Activities
Depreciation
Change in Assets and Liabilities:
Decrease (increase) in receivables
Decrease (increase) in inventories
Increase (decrease) in accounts payable
Increase (decrease) in accrued wages payable
Increase (decrease) in interfund payables
Increase (decrease) in accrued expenses
Increase (decrease) in unearned revenue
Increase (decrease) in meter deposits payable
Total Adjustments
>
$
86,589
86,589
10,056
10,056
142
142
96,787
96,787
629,863
25,062,593
25,692,456
1,219,174
4,884,154
5,725
8,604
1,854,762
29,955,351
$
6,103,328
$
8,899,378
$
2,917,230
$
!,889,678
611,424
(265,109)
(52,524)
(149,470)
-
$
(90,956) $
11,725,652
$
260,110
11,398,648
39
284,726
(332,216)
21,058
21,058
(71)
(187,549)
92
92
10,708
6,235
40,695
532,227
15,009
3,046,506
(2,911)
37,771
(2,911)
2,499,270
$
3,501,102
7,408
1,105
-
627
28,882
31,810,113
14,329
(14,583)
(38,008)
(1,800)
$
431,322
2,523,088
2,954,410
-
-
-
14,071
14,071
$
3,449,457
$
(75,947) $
14,772,158
$
322,497
582,607
EXHIBIT A-11
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
SEPTEMBER 30, 2011
Agency
Fund
FSA
Cafeteria
Fund
ASSETS
$
3,426
3,426
$
3,426
3,426
Total Assets
Liabilities:
Accrued expenses
Total Liabilities
Total Fund Balances
--
$
40
3,426
NOTES TO THE FINANCIAL STATEMENTS
A.
Summary of Significant Accounting Policies
The combined financial statements of City of Nacogdoches, Texas (the "City") have been prepared in conformity with
accounting principles applicable to governmental units which are generally accepted in the United States of
America. The Governmental Accounting Standards Board ("GASB") is the accepted standard setting body for
establishing governmental accounting and financial reporting principles.
1.
Reporting Entity
The City's basic financial statements include the accounts of all its operations. The City evaluated whether any
other entity should be included in these financial statements. The criteria for including organizations as
component units within the City's reporting entity, as set forth in GASB Statement No. 14, "The Financial
Reporting Entity," include whether:
-
the organization is legally separate (can sue and be sued in its name)
the City holds the corporate powers of the organization
the City appoints a voting majority of the organization's board
the City is able to impose its will on the organization
the organization has the potential to impose a financial benefit/burden on the City
there is fiscal dependency by the organization on the City
the exclusion of the organization would result in misleading or incomplete financial statements
The City also evaluated each legally separate, tax-exempt organization whose resources are used principally to
provide support to the City to determine if its omission from the reporting entity would result in financial
statements which are misleading or incomplete. GASB Statement No. 14 requires inclusion of such an
organization as a component unit when: 1) The economic resources received or held by the organization are
entirely or almost entirely for the direct benefit of the City, its component units or its constituents; and 2) The City
or its component units is entitled to, or has the ability to otherwise access, a majority of the economic resources
received or held by the organization; and 3) Such economic resources are significant to the City.
Based on these criteria, the City has no component units. Additionally, the City is not a component unit of any
other reporting entity as defined by the GASB Statement.
2.
Basis of Presentation, Basis of Accounting
a.
Basis of Presentation
Government-wide Statements: The
statement of net assets and the
statement of activities include the
financial activities of the overall government, except for fiduciary activities. Eliminations been made to
minimize the double-counting of internal activities. These statements distinguish between the
governmental and business-type activities of the City. Governmental activities generally are financed
through taxes, intergovernmental revenues, and other nonexchange transactions. Business-type activities
are financed in whole or in part by fees charged to external parties.
The statement of activities presents a comparison between direct expenses and program revenues for the
different business-type activities of the City and for each function of the City's governmental activities.
Direct expenses are those that are specifically associated with a program or function and, therefore, are
clearly identifiable to a particular function. The City does not allocate indirect expenses in the statement
of activities. Program revenues include (a) fees, fines, and charges paid by the recipients of goods or
services offered by the programs and (b) grants and contributions that are restricted to meeting the
operational or capital requirements of a particular program. Revenues that are not classified as program
revenues, including all taxes, are presented as general revenues.
41
Fund Financial Statements: The fund financial statements provide information about the City's funds,
with separate statements presented for each fund category. The emphasis of fund financial statements is
on major governmental and enterprise funds, each displayed in a separate column. All remaining
governmental and enterprise funds are aggregated and reported as nonmajor funds.
Proprietary fund operating revenues, such as charges for services, result from exchange transactions
associated with the principal activity of the fund. Exchange transactions are those in which each party receives
and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings,
result from nonexchange transactions or ancillary activities.
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services,
or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions,
including special assessments. Internally, dedicated resources are reported as general revenues rather
than as program revenues. Likewise, general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund's principal ongoing operations. The principal operating revenues of
the water and sewer utility fund, the sanitation fund, and the governmental internal service funds are
charges to customers for sales and services. The water and sewer fund also recognizes as operating
revenue the portion of tap fees intended to recover the cost of connecting new customers to the system.
Operating expenses for enterprise funds and internal service funds include the cost of sales and services,
administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this
definition are reported as nonoperating revenues and expenses.
The City reports the following major governmental funds:
General Fund. This is the City's primary operating fund. It accounts for all financial resources of the City
except those required to be accounted for in another fund.
Debt Service Fund: Debt Service Funds are used to account for the accumulation of resources for, and the
payment of, general long-term debt principal, interest, and related costs.
The City reports the following major enterprise funds:
Water and Sewer Fund: The Water and Sewer Fund is used to account for the water and sewer system
operations that are financed and operated in a manner similar to private business enterprises - where the
intent of the governing body is that the costs (expenses, including depreciation) of providing goods or
services to the general public on a continuing basis be financed or recovered primarily through user
charges.
Sanitation
Fund: The
Sanitation
Fund is used to account for the
garbage
collection and landfill
operations that are financed and operated in a manner similar to private business enterprises - where the
intent of the governing body is that the costs (expenses, including depreciation) of providing goods or
services to the general public on a continuing basis be financed or recovered primarily through user
charges.
In addition, the City reports the following fund types:
Special Revenue Funds: Account for transactions related to resources received and used for restricted or
specific purposes.
Permanent Funds: Account for transactions of the Sunset Trust Fund,
and whose income is used to benefit the Sunset Cemetery.
42
whose principal must remain intact
provided to parties inside the City. These funds facilitate distribution of support costs to the users of
support services on a cost-reimbursement basis. Because the principal users of the internal services are the
City's governmental activities, this fund type is included in the "Governmental Activities" column of the
government-wide financial statements.
Agency Funds: These funds are custodial in nature and do not present results of operations or have a
measurement focus. Agency funds are accounted for using the accrual basis of accounting. These funds
are used to account for assets the City holds in a fiduciary capacity for individuals and other funds. other
governmental units, and/or other funds.
Fiduciary funds are reported in the fiduciary fund financial statements. However, because their assets are
held in a trustee or agent capacity and are therefore not available to support City programs, these funds
are not included in the government-wide statements.
b.
Measurement Focus, Basis of Accounting
Government-wide and Proprietary Fund Financial Statements: These financial statements are reported
using the economic resources measurement focus. The government-wide and proprietary fund financial
statements are reported using the accrual basis of accounting. Revenues are recorded when earned and
expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take
place. Nonexchange transactions, in which the City gives (or receives) value without directly receiving (or
giving) equal value in exchange, include property taxes, grants, entitlements, and donations. On an
accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied.
Revenue from grants, entitlements, and donations is recognized in the fiscal year in which all eligibility
requirements have been satisfied.
Governmental Fund Financial Statements: Governmental funds are reported using the current financial
resources measurement focus and the modified accrual basis of accounting. Under this method, revenues
are recognized when measurable and available. The City does not consider revenues collected after its
year-end to be available in the current period. Revenues from local sources consist primarily of property
taxes.
Property tax revenues and revenues received from the State are recognized under the
susceptible-to-accrual concept. Miscellaneous revenues are recorded as revenue when received in cash
because they are generally not measurable until actually received. Investment earnings are recorded as
earned, since they are both measurable and available. Expenditures are recorded when the related fund
liability is incurred, except for principal and interest on general long-term debt, claims and judgments,
and compensated absences, which are recognized as expenditures to the extent they have matured.
General capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of
general long-term debt and acquisitions under capital leases are reported as other financing sources.
When the City incurs an expenditure or expense for which both restricted and unrestricted resources may
be used, it is the City's policy to use restricted resources first, then unrestricted resources.
43
3.
Financial Statement Amounts
a.
Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, demand deposits, and short-term investments with
original maturities of three months or less from the date of acquisition. It is the policy of the City to require
full collateralization of allCity funds on deposit with a depository bank.
The City Investment Policy governs investment of its funds, which are specifically limited to the following:
1.
Obligations of the United States or its agencies and instrumentalities
2.
Certificates of deposit issued by state and national banks domiciled in Texas
3.
Fully collateralized direct repurchase agreements
4.
Money Market Mutual funds that are 1) registered and regulated by the Securities and
Exchange Commission, 2) have a dollar weighted average stated maturity of 90 days or less, 4)
rated AAA by at least one nationally recognized rating service, and 4) seek to maintain a net
asset value of $1.00 per share, and
5.
Local government investment pools, which 1) meet the requirements of Chapter 2256.016 of
the Public Funds Investment Act, 2) are rated no lower than AAA or an equivalent rating by at
least one nationally recognized rating service, 3) seek to maintain a $1.00 net asset value, and
4) are authorized by resolution or ordinance by the Commission.
During the year, the City invested in TexPool, which operates like a "2a7-like" pool and is reported at
amortized cost.
b.
Property Taxes
Property taxes are levied by October 1 on the assessed value listed as of the prior January 1 for all real
and business personal property in conformity with Subtitle E, Texas Property Tax Code. Taxes are due on
receipt of the tax bill and are delinquent if not paid before February 1 of the year following the year in
which imposed. On January 1 of each year, a tax lien attaches to property to secure the payment of all
taxes, penalties, and interest ultimately imposed. Property tax revenues are considered available
when they become due or past due and receivable within the current period.
Allowances for uncollectible tax receivables within the General and Debt Service Funds are based upon
historical experience in collecting property taxes. Uncollectible personal property taxes are periodically
reviewed and written off, but the City is prohibited from writing off real property taxes without specific
statutory authority from the Texas Legislature.
c.
Inventories and Prepaid Items
Inventories of fuel in the Airport Fund are valued at cost using the weighted average cost method. For the
governmental funds, the City records purchases of supplies as expenditures, utilizing the purchase method
of accounting for inventory.
d.
Restricted Assets
Restricted assets include cash and investments that are legally restricted as to their use. The primary
restricted assets are related to restricted contributions, debt retirement, and construction activity.
44
e.
Capital Assets
Purchased or constructed capital assets are reported at cost or estimated historical cost. Donated fixed
assets
are
recorded
at their estimated
fair
value
at the
date
of the
donation.
The
cost
of
normal
maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are
not capitalized. A capitalization threshold of $1,500 is used.
Capital assets are being depreciated using the straight-line method over the following estimated useful lives:
Estimated
Asset Class
Infrastructure
Water & Sewer Systems
Buildings
Building Improvements
f.
Useful Lives
50
40-50
50
15
Vehicles
3-15
Equipment
3-15
Receivable and Payable Balances
At September 30, 2011, there were receivables in the Governmental Funds totaling $624,864, which are
scheduled for collection beyond one year. The balance of these receivables constitutes non-spendable
equity.
g.
Compensated Absences
Accumulated vacation and sick leave is accrued, when incurred, in the government-wide and proprietary
fund financial statements. A liability for these amounts is reported in the governmental funds only if they
have matured, for example, as a result of employee resignations and retirements in accordance with
GASB Interpretation No. 6. On retirement or death of certain employees, the City pays 25% of accrued
sick leave and any vacation in a lump case payment to such employee or his/her estate.
h.
Interfund Activity
Interfund activity results from loans, services provided, reimbursements or transfers between funds. Loans are
reported as interfund receivables and payables as appropriate and are subject to elimination upon consolidation.
Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures or
expenses. Reimbursements occur when one fund incurs a cost, charges the appropriate benefiting fund and
reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers In
and Transfers Out are netted and presented as a single "Transfers" line on the government-wide statement of
activities. Similarly, interfund receivables and payables are netted and presented as a single "Internal Balances"
line of the government-wide statement of net assets.
i.
Fund Balances - Governmental Funds
Fund balances of the governmental funds are classified as follows:
Nonspendable Fund Balance - represents amounts that cannot be spent because they are either not in
spendable form (such as inventory or prepaid insurance) or legally required to remain intact (such as notes
receivable or principal of a permanent fund).
45
Restricted Fund Balance - represents amounts that are constrained by external parties, constitutional
provisions or enabling legislation.
Committed Fund Balance - represents amounts that can only be used for a specific purpose because of a
formal action by the City Council. Committed amounts cannot be used for any other purpose unless the
City Council removes those constraints by taking the same type of formal action. Committed fund balance
amounts may be used for other purposes with appropriate due process by the City Council. Commitments
are typically done through adoption and amendment of the budget. Committed fund balance amounts
differ from restricted balances in that the constraints on their use do not come from outside parties,
constitutional provisions, or enabling legislation.
Assigned Fund Balance - represents amounts which the City intends to use for a specific purpose, but that
do not meet the criteria to be classified as restricted or committed. Intent may be stipulated by the City
Council or by an official or body to which the City Council delegates the authority. Specific amounts that
are not restricted or committed in a special revenue, capital projects, debt service or permanent fund are
assigned for purposes in accordance with the nature of their fund type or the fund's primary purpose.
Assignments within the general fund conveys that the intended use of those amounts is for a specific
purpose that is narrower than the general purposes of the City itself.
Unassigned Fund Balance - represents amounts which are unconstrained in that they may be spent for
any purpose. Only the general fund reports a positive unassigned fund balance. Other governmental
funds might report a negative balance in this classification because of overspending for specific purposes
for which amounts had been restricted, committed or assigned.
When an expenditure is incurred for a purpose for which both restricted and unrestricted fund balance is
available, the City considers restricted funds to have been spent first. When an expenditure is incurred for
which committed, assigned, or unassigned fund balances are available, the City considers amounts to
have been spent first out of committed funds, then assigned funds, and finally unassigned funds.
j.
Long-Term Debt, Bond Discounts/Premiums and Issuance Costs
In the government-wide financial statements, and proprietary fund types in the fund 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 type statement of net assets. Bond premiums and
discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the
effective interest method. Bonds payable are reported net of the applicable bond premium or discount.
Bond issuance costs are reported as deferred charges and amortized over the term of the related debt.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as
well as bond issuance costs, during the current period. The face amount of debt issued is reported as
other financing sources. Premiums received on debt issuances are reported as other financing sources
while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not
withheld from the actual debt proceeds received, are reported as debt service expenditures.
k.
Use of Estimates
The preparation of financial statements in conformity with GAAP requires the use of management's
estimates.
46
I.
New Accounting Pronouncements
In March 2009, the GASB issued Statement No. 54, "Fund Balance Reporting and Governmental Fund
Type Definitions". This statement is to enhance the usefulness of fund balance information by providing
clearer fund balance classifications that can be more consistently applied and by clarifying the existing
governmental
fund
type definitions.
The
requirements of this
statement are effective
for financial
statements for periods beginning after June 15, 2010. The City has implemented GASB No. 54 in this
annual report.
In December 2009, the GASB issued Statement No. 57, "OPEB Measurements by Agent Employers and
Agent Multiple-Employer Plans". This statement is to address issues related to the use of the alternative
measurement method and the frequency and timing of measurements by employers that participate in
agent multiple-employer other postemployment benefit (OPEB) plans. The requirements of this statement
are effective for financial statements for periods beginning after June 15, 2011. The City has not
determined the impact, if any, upon its financial position, results of operations or cash flows upon
adoption.
In June 2010, the GASB issued Statement No. 59, "Financial Instruments Omnibus". This statement is to
update and improve existing standards regarding financial reporting and disclosure requirements of
certain financial instruments and external investment pools for which significant issues have been
identified in practice. The requirements of this statement are effective for financial statements for periods
beginning after June 15, 2010. The City has implemented GASB No. 59 in this annual report.
In November 2010, the GASB issued Statement No. 60, "Accounting and Financial Reporting for Service
Concession Arrangements". This statement is to improve financial reporting by addressing issues related
to service concession arrangements (SCAs), which are a type of public-private or public-public partnership.
The requirements of this statement are effective for financial statements for periods beginning after
December 15, 2011. The City has not determined the impact, if any, upon its financial position, results of
operations or cash flows upon adoption.
In November 2010, the GASB issued Statement No. 61, "The Financial Reporting Entity: Omnibus-an
amendment of GASB Statements No. 14 and No. 34". This statement is to improve financial reporting for
a governmental financial reporting entity. The requirements of this statement are effective for financial
statements for periods beginning after June 15, 2012. The City has not determined the impact, if any,
upon its financial position, results of operations or cash flows upon adoption.
In December 2010, the GASB issued Statement No. 62, "Codification of Accounting and Financial
Reporting Guidance Contained in Pre-November 30,
1989 FASB and AICPA Pronouncements". This
statement is to incorporate into the GASB's authoritative literature certain accounting and financial
reporting guidance that is included in the following pronouncements issued on or before November 30,
1989, which does not conflict with or contradict GASB pronouncements: Financial Accounting Standards
Board (FASB) Statements and Interpretations; Accounting Principles Board Opinions; Accounting
Research Bulletins of the American Institute of Certified Public Accountants (AICPA) Committee on
Accounting Procedure. The requirements of this statement are effective for financial statements for
periods beginning after December 15, 2011. The City has implemented GASB No. 62 in this annual
report.
47
4.
Budgetary Data
The following procedures are followed in establishing the budgetary data reflected in the basic financial
statements:
a.
b.
Prior to the beginning of the fiscal year, the City prepares a budget for the next succeeding fiscal year.
The operating budget includes proposed expenditures and the means of financing them.
A meeting of the City Council is then called for the purpose of adopting the proposed budget. At least ten
days' public notice of the meeting must have been given.
c.
Prior to the start of the fiscal year, the budget is legally enacted through passage of a resolution by the
City Council.
Once a budget is approved, it can be amended only by approval of a majority of the members of the City
Council. As required by law, such amendments are made before the fact, are reflected in the official minutes of
the City Council and are not made after fiscal year end. During the year, the budget was amended as necessary.
All budget appropriations lapse at year end.
5.
Encumbrance Accounting
Encumbrances for goods or purchased services are documented by purchase orders or contracts. Under Texas law,
appropriations lapse at September 30, and encumbrances outstanding at that time are to be either canceled or
appropriately provided for in the subsequent year's budget.
The City had no outstanding end-of-year encumbrances.
B.
Compliance and Accountability
1.
Finance-Related Legal and Contractual Provisions
In accordance with GASB Statement No. 38, "Certain Financial Statement Note Disclosures," violations of financerelated legal and contractual provisions, if any, are reported below, along with actions taken to address such violations:
2.
Violation
Action Taken
None reported
Not applicable
Deficit Fund Balance or Fund Net Assets of Individual Funds
Following are funds having deficit fund balances or fund net assets at year end, if any, along with remarks which address
such deficits:
Deficit
Fund Name
None reported
Amount
None
48
Remarks
Not applicable
C.
Reconciliation of Government-Wide and Fund Financial Statements
The proprietary fund statement of net assets includes reconciliation between net assets - total enterprise funds and net
assets of business-type activities as reported in the government-wide statement of net assets. The description of that
reconciliation is "Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds."
The details of this difference are as follows:
Internal receivable representing charges in excess of cost to
business-type activities - prior years
Internal receivable representing charges in excess of cost to
business-type activities - current year
Net adjustment to increase net assets - total enterprise fund
to arrive at net assets - business-type activities
D.
$
248,423
(29,267)
$
219,156
Deposits and Investments
The City's funds are required to be deposited and invested under the terms of a depository contract. The depository
bank deposits for safekeeping and trust with the City's agent bank approved pledged securities in an amount sufficient
to protect City funds on a day-to-day basis during the period of the contract. The pledge of approved securities is
waived only to the extent of the depository bank's dollar amount of Federal Deposit Insurance Corporation ("FDIC")
insurance.
Cash Deposits:
At September 30, 2011, the City had the following deposits and investments:
Deposit Description:
Deposits at Regions Bank
Deposits at Regions Bank Trust Dept
TexPool
Total Investments
Ratings
N/A
N/A
AAAm
$
$
Fair Value
40,071,308
3,510,015
927,373
44,508,696
At September 30, 2011, the carrying amount of the City's deposits (cash, certificates of deposit, and interest-bearing
savings accounts included in temporary investments) was $43,581,323 and the bank balance was $44,421,963. The
City's cash deposits at September 30, 2011 and during the year ended September 30, 2011, were entirely covered by
FDIC insurance or by pledged collateral held by the City's agent bank in the City's name.
Investments;
The City is required by Government Code Chapter 2256, The Public Funds Investment Act, to adopt, implement, and
publicize an investment policy. That policy must be written; primarily emphasize safety of principal and liquidity;
address investment diversification, yield, and maturity and the quality and capability of investment management; and
include a list of the types of authorized investments in which the investing entity's funds may be invested; and the
maximum allowable stated maturity of any individual investment owned by the entity.
The Public Funds Investment Act ("Act") requires an annual audit of investment practices. Audit procedures in this
area conducted as a part of the audit of the general purpose financial statements disclosed that in the areas of
investment practices, management reports and establishment of appropriate policies, the City adhered to the
requirements of the Act. Additionally, investment practices of the City were in accordance with local policies.
The Act determines the types of investments which are allowable for the City. These include, with certain restrictions,
(1) obligations of the U.S. Treasury, certain U.S. agencies, and the State of Texas, (2) certificates of deposit, (3)
certain municipal securities, (4) money market savings accounts, (5) repurchase agreements, (6) bankers acceptances,
(7) mutual funds, (8) investment pools, (9) guaranteed investment contracts, and (10) common trust funds.
49
The City's investments at September 30, 2011 are shown below.
Investment or Investment Type
Maturity
TexPool
N/A
Total Investments
Fair Value
$
927,373
$
927,373
Analysis of Specific Deposit and Investment Risks:
GASB Statement No. 40 requires a determination as to whether the City was exposed to the following specific
investment risks at year end and if so, the reporting of certain related disclosures:
a.
Credit Risk
Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The ratings of
securities by nationally recognized rating agencies are designed to give an indication of credit risk. At year end, the
City was not significantly exposed to credit risk.
At September 30, 2011, the City's investments, other than those which are obligations of or guaranteed by the U.
S. Government, are rated as to credit quality as follows:
TexPool Investment Pool - rated AAAm by Standard & Poor's
b.
Custodial Credit Risk
Deposits are exposed to custodial credit risk if they are not covered by depository insurance and the deposits are
uncollateralized, collateralized with securities held by the pledging financial institution, or collateralized with securities
held by the pledging financial institution's trust department or agent but not in the City's name.
Investment securities are exposed to custodial credit risk if the securities are uninsured, are not registered in the name of
the government, and are held by either the counterparty or the counterparty's trust department or agent but not in the
City's name.
At year end, the City was not exposed to custodial credit risk.
c.
Concentration of Credit Risk
This risk is the risk of loss attributed to the magnitude of a government's investment in a single issuer. At year end, the
City was not exposed to concentration of credit risk.
d.
Interest Rate Risk
This is the risk that changes in interest rates will adversely affect the fair value of an investment. At year end, the
City was not exposed to interest rate risk.
e.
Foreign Currency Risk
This is the risk that exchange rates will adversely affect the fair value of an investment. At year end, the City was
not exposed to foreign currency risk.
50
Investment Accounting Policy
The City's general policy is to report money market investments and short-term participating interest-earning
investment contracts at amortized cost and to report nonparticipating interest-earning investment contracts using a
cost-based measure. However, if the fair value of an investment is significantly affected by the impairment of the
credit standing of the issuer or by other factors, it is reported at fair value. All other investments are reported at fair
value unless a legal contract exists which guarantees a higher value. The term "short-term" refers to investments
which have a remaining term of one year or less at time of purchase. The term "nonparticipating" means that the
investment's value does not vary with market interest rate changes. Nonnegotiable certificates of deposit are examples
of nonparticipating interest-earning investment contracts.
Public Funds Investment Pools
Public funds investment pools in Texas ("Pools") are established under the authority of the Interlocal Cooperation Act,
Chapter 79 of the Texas Government Code, and are subject to the provisions of the Public Funds Investment Act (the
"Act"), Chapter 2256 of the Texas Government Code. In addition to other provisions of the Act designed to promote
liquidity and safety of principal, the Act requires Pools to: 1) have an advisory board composed of participants in the
pool and other persons who do not have a business relationship with the pool and are qualified to advise the pool; 2)
maintain a continuous rating of no lower than AAA or AAA-m or an equivalent rating by at least one nationally
recognized rating service; and 3) maintain the market value of its underlying investment portfolio within one half of
one percent of the value of its shares.
The City's investments in Pools are reported at an amount determined by the fair value per share of the pool's
underlying portfolio, unless the pool is 2a7-like, in which case they are reported at share value. A 2a7-like pool is one
which is not registered with the Securities and Exchange Commission ("SEC") as an investment company, but
nevertheless has a policy that it will, and does, operate in a manner consistent with the SEC's Rule 2a7 of the
Investment Company Act of 1940.
TexPool is a government investment pool. The Texas State Comptroller of Public Accounts exercises oversight
responsibility. TexPool operates in a manner consistent with the Public Funds Investment Act and portions of the
SEC's Rule 2a-7 of the Investment Company Act of 1940. Accordingly, it seeks to maintain a stable net asset value
of $1.00 per share and the fair value of the position in TexPool is the same as the fair value of TexPool shares.
E.
Receivables
The disaggregation of receivables is summarized as follows
Property taxes, net of allowance of $155,604
Governmental
Proprietary
Funds
Funds
347,025
Customer accounts, net of allowance of $336,911
Unbilled utility receivable
52,637 $
Due from State government for sales taxes
Due from other governments for grants
Amount due under economic development loans, net
433,658
620,696
624,864
114,292
Other
$
Totals
2,193,172 $
1,784,109
1,151,727
14,081
2,949,917
The City has been the recipient of grants from the State and Federal governments for economic development. In
accordance with the terms of the grants, funds have been loaned to specific entities at interest rates varying from four
percent to six percent. Under the terms of the grants, the City is required to utilize repaid funds exclusively in the City
of Nacogdoches for eligible economic development activities in accordance with the provisions of Title I of the
Housing and Community development Act of 1974, as amended.
51
In 2007, the City abated $2,883,237 in Economic Development Loans. As a result, the City entered into an
agreement with the Texas Office of Rural Community Affairs (ORCA) to pay $1,255,347 into a Revolving Loan Fund
(Economic Development Fund) over 22 years. This fund will only be used for economic development loans in the
future. A balance of $800,000 remains at September 30, 2011. Future transfers into the Revolving Loan Fund are:
Required
Year Ending September 30r
2012
Transfer
$
25,000
25,000
25,000
25,000
50,000
475,000
175,000
800,000
2013
2014
2015
2016
2017-2021
2022-2026
Totals
$
activity in the City's outstanding Revolving Loans at September 30, 2011 are as follows:
Balance at
Balance at
Beginning of
New Loans
Fiscal Year
Effective Teleservices, Inc.
$
T-Rex
Totals
$
End of
Repayments
Fiscal Year
$
300,000 $
150,640
193,732
Southwest Scooters
Debt
-
$
300,000
150,640
174,224
624,864
-
644,372 $
19,508
19,508 $
$
The balance of unpaid principal receivable is shown as "Nonspendable" Equity.
F.
Capital Assets
Capital asset activity for the year ended September 30, 2011, was as follows:
Beginning
Balances
Ending
Increases
Decreases
Balances
Governmental activities;
Capital assets not being depreciated:
Land
$
Total capital assets not being depreciated
Capital assets being depreciated:
Buildings
Improvements
Equipment
Infrastructure
Total capital assets being depreciated
Less accumulated depreciation for:
Buildings
Improvements
Equipment
Infrastructure
Total accumulated depreciation
Total capital assets being depreciated, net
Governmental activities capital assets, net
$
3,611,381 $
14,317,797
3,220,347
10,808,013
45,933,568
74,279,725
(4,441,825)
(1,486,868)
(8,701,198)
(25,642,880)
(40,272,771)
34,006,954
38,523,734 $
52
$
$
905,399
4,516,780
179,597
179,597
408,809
-
149,546
149,546
--
-
171,676
272,318
-
-
681,127
(339,183)
(127,976)
(827,366)
(884,298)
(2,178,823)
(1,497,696)
(1,318,099)$
171,676
-
--
(169,011)
-
(169,011)
2,665
152,211 $
3,611,381
935,450
4,546,831
14,726,606
3,220,347
10,908,655
45,933,568
74,789,176
(4,781,008)
(1,614,844)
(9,359,553)
(26,527,178)
(42,282,583)
32,506,593
37,053,424
Beginning
Ending
Balances
Increases
Decreases
Balances
Business-type activities;
Capital assets not being depreciated:
Land
3I
Total capital assets not being depreciated
1,509,907 $
20,717,496
22,227,403
Capital assets being depreciated:
Water system, buildings, improvements
Sewer system, buildings, improvements
Landfill, buildings, improvements
Total capital assets being depreciated
Less accumulated depreciation for:
Water system, buildings, improvements
Sewer system, buildings, improvements
Landfill, buildings, improvements
Total accumulated depreciation
Total capital assets being depreciated, net
Business-type activities capital assets, net
$J
25,348 $
3,452,553
3,477,901
71,889,784
45,081,442
3,912,562
6,929,437
127,813,225
2,230,516
675,271
1,789
990,000
3,897,576
(29,008,970)
(27,116,993)
(2,066,214)
(4,069,519)
(62,261,696)
(1,710,027)
(929,044)
(138,757)
(719,913)
(3,497,741)
65,551,529
$
2,132,504
2,132,504
388,781
388,781
74,120,300
45,756,713
3,914,351
7,530,656
131,322,020
(366,658)
(366,658)
(30,718,997)
(28,046,037)
(2,204,971)
(4,422,774)
(65,392,779)
22,123
2,154,627 $
65,929,241
89,502,041
„
-
~
—
-
~
399,835
87,778,932 $
3,877,736 $
1,535,255
22,037,545
23,572,800
Depreciation was charged to functions as follows:
General government
Public safety
J
175,024
800,436
1,019,300
135,529
48,534
2,178,823
Economic development and assistance
$"J
The City's commitments as of September 30, 2011 on active construction projects are summarized as follows:
Project
Wastewater Improvements
2004 SRF Projects
Total Project
$
746,500 $
5,085,018
$
6,759,782 $
2006 SRF Projects
Totals
G.
Remaining
Commitment
Spent to Date
293,229 $
4,702,740
928,264
829,961
453,271
382,278
98,303
5,825,930 $_
933,852
Interfund Balances and Activity
1.
Due To and From Other Funds
Balances due to and due from other funds at September 30, 2011, consisted of the following:
Due To Fund
Due From Fund
Amount
General Fund
General Fund
Nonmajor enterprise
Nonmajor governmental
Nonmajor enterprise
General Fund
Total
53
$
40,000
326,417
7,592
374,009
Purpose
Cash advance to airport
Cash advance for grants
Cash advance for grants
All amounts due are scheduled to be repaid within one year. In addition to the amounts above, there is
$219,156, due from Governmental Activities to Business-Type Activities resulting from the split of the Health
Insurance Internal Service Fund equity between governmental activities and business-type activities.
Transfers To and From Other Funds
Transfers to and from other funds at September 30, 2011, consisted of the following:
Transfers From
Transfers To
Amount
General Fund
$
157,977
Reason
Supplement sources of funds
and to fund the ORCA
economic development
General Fund
81,530
3,239,000
agreement for $100,000
Supplement funds for airport
Sanitation Fund
General Fund
1,837,000
Internal Service Fund
General Fund
24,500
1,271
252,784
21,000
25,000
General Fund
Nonmajor enterprise
Water & Sewer Fund
and remit franchise fees
and remit franchise fees
Nonmajor
Nonmajor
Nonmajor
Nonmajor
governmental
governmental
governmental
governmental
General Fund
Water & Sewer Fund
Sanitation Fund
$
Total
Supplement other funds
Transfer equipment
Transfer equipment
5,640,062
Lonq-Term Obligations
The City has entered into a continuing disclosure undertaking to provide Annual Reports and Material Event Notices
to the State Information Depository of Texas, which is the Municipal Advisory Council. This information is required under
SEC Rule 15c2-12 to enable investors to analyze the financial condition and operations of the City.
1.
Long-Term Obligation Activity
Long-term obligations include debt and other long-term liabilities. Changes in long-term obligations for the year ended
September 30, 2011, are as follows:
Amounts
Beginning
Balance
Increases
Decreases
Ending
Due Within
Balance
One Year
Governmental activities;
Compensated absences *
Total governmental activities
Business-type activities:
10,365,000 $
126,583
1,480,014
$>
•
Revenue bonds
Meter deposits *
Compensated absences *
Landfill closure costs *
Total business-type activities
>
$
--
126,178
11,971,597 $
126,178 $
2,045,000 $
$
52,615,000
115,394
138,557
249,991
3,059,784
1,680,000
58,223,726 $
1,792,968 $
--
-
21,818
91,150
* Other long-term liabilities
54
755,000 $
30,481
39,036
824,517 $
1,005,000 $
9,610,000
96,102
1,567,156
780,000
-
116,507
896,507
11,273,258 $
2,175,000
34,632
2,911
1,757
28,985
1,040,000
52,120,000
80,762
135,646
270,052
3,121,949
1,040,000
2,245,000
3,248,285 $
56,768,409 $
3,306,303
-
--
21,303
-
The funds typically used to liquidate other long-term liabilities in the past are as follows:
Liability
Meter deposits
Landfill closure costs
Activity Type
Fund
Governmental
General Fund
Business-type
Business-type
Business-type
Water & Sewer & Sanitation Funds
Water & Sewer & Sanitation Funds
Sanitation Fund
Debt consisted of the following issues at September 30, 2011:
Series
Interest
Date
Maturity
Original
Principal
Rates
Issued
Date
Amount
Outstanding
4.60-6.50%
May 2002
2.00-4.00%
Oct 2009
2.00-3.00%
May 2010
Sep 2022
Sep 2017
Sep 2017
Governmental Activities;
2002 Certificates Obligation
2009 Refunding
2010 Refunding
6,800,000 $
3,260,000
1,305,000
Total
$
5,760,000
2,715,000
1,135,000
9,610,000
Business-Type Activities:
2001 Water & Sewer SRF
2.85-3.65%
Feb 2001
Mar 2030
18,835,000 $
2.90-3.85%
Mar 2002
Mar 2034
1.05-2.65%
Mar 2004
Mar 2025
2.15-2.42%
Mar 2006
Mar 2014
3.25-3.38%
Mar 2008
Mar 2015
2003 Refunding
2010 Refunding
3.50-3.60%
2.00-3.00%
Apr 2003
May 2010
Sep 2012
Sep 2018
17,630,000
10,365,000
8,210,000
5,400,000
7,410,000
2,840,000
Total
$
SRF - Debts issued by the State Revolving Fund of Texas
Debt Service Requirements
Debt service requirements on long-term debt at September 30, 2011, are as follows:
2012
3>
795,000
820,000
850,000
770,000
4,545,000
1,050,000
2013
2014
2015
2016
2017-2021
2022-2026
Totals
Principal
780,000 $
3
9,610,000 $
Interest
398,852 $
378,303
356,077
332,888
305,347
973,050
53,812
2,798,329 $
55
Total
1,178,852
1,173,303
1,176,077
1,182,888
1,075,347
5,518,050
1,103,812
12,408,329
18,210,000
17,455,000
7,615,000
3,015,000
3,320,000
1,040,000
2,505,000
53,160,000
Business-type Activities
Year Ending September 30,
2012
2013
2014
2015
2016
2017-2021
2022-2026
2027-2031
2032-2036
Totals
3.
$
$
Principal
Interest
3,285,000 $
3,385,000
3,470,000
3,550,000
2,730,000
12,540,000
12,200,000
9,000,000
3,000,000
53,160,000 $
1,708,269 $
1,600,407
1,505,918
1,405,825
1,315,687
5,396,379
3,296,537
1,344,500
173,250
17,746,772 $
Total
4,993,269
4,985,407
4,975,918
4,955,825
4,045,687
17,936,379
15,496,537
10,344,500
3,173,250
70,906,772
Continuing Disclosure
The City has entered into a continuing disclosure undertaking to provide certain updated financial information
and operating data annually, and timely notice of specified material events, to the Municipal Securities
Rulemaking Board (the "MSRB"). This information will be available to securities brokers and others from the
MSRB's Electronic Municipal Market Access ("EMMA") System at www.emma.msrb.org. This information is
required under SEC Rule 15c2-12 to enable investors to analyze the financial condition
4.
Bonds Authorized and Unissued
During the year ended September 30, 2011, the City de-obligated $3,310,000 in available, but un-drawn, funds
from the 2006 Water & Sewer Revenue Bonds, changing the total debt issue from $11,520,000 to $8,210,000.
At September 30, 2011, the City had $4,300,000 remaining in the 2006 Water & Sewer Revenue Bonds, which
were authorized and unissued.
5.
Compensated Absences
Compensated absences represented the estimated liability for employees' accrued vacation and sick leave for
which employees are entitled to be paid upon termination. The retirement of this liability is paid from the
General Fund and Enterprise Funds based on the assignment of an employee at termination.
Commitments Under Noncapitalized Leases
Commitments under operating (noncapitalized) lease agreements for facilities and equipment provide for minimum
future rental payments as of September 30, 2011, as follows:
2012
2013
2014
2015
$
68,180
60,741
60,741
55,679
Total Minimum Rentals
$
245,341
Rental Expenditures in 2011
$
85,902
56
J.
Risk Management
The City is exposed to various risks of loss related to torts, theft, damage or destruction of assets, errors and omissions,
injuries to employees, and natural disasters. During fiscal year 2011, the City obtained general liability coverage at a
cost that is considered to be economically justifiable by joining together with other governmental entities in the State
as a member of the Texas Municipal League Intergovernmental Risk Pool ("TML"). operating as a common risk
management a TML is a self-funded pool operating as a common risk management and insurance program. The City
pays an annual premium to TML for its above insurance coverage. The agreement for the formation of TML provides
that TML will be self-sustaining through member premiums and will reinsure through commercial companies for
claims in excess of acceptable risk levels; however, each category of coverage has its own level of reinsurance. The
City continues to carry commercial insurance for other risks of loss. There were no significant reductions in commercial
insurance coverage in the past fiscal year and settled claims resulting from these risks have not exceeded coverage in
any of the past three fiscal years.
The City has entered into an agreement with Blue Cross Blue Shield of Texas to administer its employee health
benefit plan. Under the terms of the agreement, the administrator (1) reviews claims for benefits under the plan and
determines whether they have been properly filed and determines the amount, if any, which is due and payable with
respect thereto, (2) on behalf of the City, disburses claim payments that it determines to be due in accordance with
the provisions of the plan to the eligible individual or assignee of such eligible individual entitled thereto, and (3)
takes all reasonable steps to process claims and disburse claim payments expeditiously.
The Plan provides coverage of up to $75,000 for each individual. The City has a reinsurance agreement for the plan
that provides coverage perindividual claim in excess of $75,000 per year. In addition, the reinsurance agreement
provides $1,000,000 in coverage when aggregate claims exceed a threshold, calculated based on a minimum
attachment point of $1,278,467.
Under the terms of the plan, eligible claims and related expenses are paid from premiums paid by covered
employees and the various funds of the City in which they are employed. During the year ended September 30,
2008, the City began providing health care benefits to its employees under a self-insurance plan ("Medical Plan"). In
prior years, the City purchased commercial health insurance for this benefit. The City accounts for the transactions of
the plan in the Health Insurance Fund, an Internal Service Fund. At September 30, 2011, the City had recorded a
liability of $93,232 for claims incurred but not paid at that date. This liability was based on a review of claims paid
subsequent to the end of the year.
Current Year
Fiscal Year Ended
September 30, 2009
September 30, 2010
September 30, 2011
K.
$
Beginning of
Claims &
Payments
End of
Fiscal Year
Changes in
on
Fiscal Year
Estimates
Claims
Liability
Liability
83,740 $
39,141
63,802
1,094,017 $
1,138,616 $
1,153,557
1,394,910
1,128,896
1,365,480
39,141
63,802
93,232
Pension Plan
1.
Plan Description
The City's pension plan ("Plan") is a non-traditional, joint contributory, defined benefit plan which provides
retirement, disability and death benefits to Plan members and beneficiaries through its affiliation with Texas
Municipal Retirement System ("TMRS"), an agent multiple-employer public employee retirement system.
TMRS operates under the authority of Texas Government Code, Title 8, Subtitle G. The Texas legislature has
the authority to establish or amend benefit provisions and the governing body of the City adopts the plan
provisions within the options and constraints established by the legislature. TMRS issues a publicly available
financial report that includes financial statements and required supplementary information for TMRS. That
report may be obtained by writing to Texas Municipal Retirement System, P.O. Box 149153, Austin, TX
78714-9153 or calling (800)
site, http://www.tmrs.org.
924-8677. Additional nonauthoritative information is available at the TMRS web
57
2.
Funding Policy
Plan members are required to contribute 7% of their annual covered salary. The City is required to contribute at
an actuarially determined rate; the current rate is approximately 19% of annual covered payroll. The City's
contributions to the TMRS for the years ending September 30, 2011, 2010 and 2009 were $2,801,559,
$2,566,967 and $2,302,757, respectively, and were equal to the required contributions for each year.
3.
Annual Pension Cost
The City's annual pension cost of $2,801,559 for the Plan was equal to the City's required and actual
contributions. Under the state law governing TMRS, the actuary annually determines the City's contribution rate.
This rate consists of the normal cost contribution rate and the prior service contribution rate, both of which are
calculated to be a level percent of payroll from year to year. The normal cost contribution rate finances the
currently accruing monetary credits due to the City matching percent, which are the obligation of the City as of
an employee's retirement date, not at the time the employee's contributions are made.
The normal cost
contribution rate is the actuarially determined percent of payroll necessary to satisfy the obligation of the City to
each employee at the time his/her retirement becomes effective. The prior service contribution rate amortizes
the unfunded (overfunded) actuarial liability (asset) over the remainder of the plan's 25-year amortization period.
When the City periodically adopts updated service credits and increases in annuities in effect, the increased
unfunded actuarial liability is to be amortized over a new 25-year period. Currently, the unfunded actuarial
liability is being amortized over the 25-year period which began January 1997. The unit credit actuarial cost
method is used for determining the City's contribution rate. Since the City needs to know its contribution rate in
advance to budget for it, there is a one-year delay between the actuarial valuation that is the basis for the rate
and the calendar year when the rate goes into effect (i.e., December 31, 1997 valuation is effective for rates
beginning January 1999).
Since the TMRS does not value the assets of individual cities, the actuarial assumptions used to set the required
contribution rate of the City are based on TMRS as a whole. For the December 31, 1997 valuation date, an 8%
investment rate of return was assumed. No assumptions were made for projected salary increases, inflation or
cost of living adjustments.
4.
Actuarial information
Actuarial valuation date
12/31/2010
Actuarial cost method
Amortization method
Projected Unit Credit
Level Percentage of Payroll
Amortization period
27.1 Years - Closed Period
Asset valuation method
10-Year Smoothed Market
Actuarial assumptions:
Investment return rate
7.0%
Projected salary increases
Varies by age and service
Inflation
3.0%
Cost-of-living adjustment
2.1%
58
5.
Trend Information for the Plan
Fiscal Year Ending
September 30, 2009
September 30, 2010
September 30, 2011
$
Annual
Percentage
Net
Pension
of APC
Pension
Contributed
Obligation
Cost (APC)
2,302,757
100% $
2,566,967
2,801,559
--
100%
~
100%
-
(2)
(D
(3)
(4)
Unfunded
Fiscal Year Ending
September 30, 2009
September 30, 2010
September 30, 2011
$
Actuarial
Actuarial
Value of
Accrued
Funded
Assets *
Liability *
Ratio
25,360,972 $
26,640,543
54,781,854
(5)
Actuarial
50,862,660
53,065,171
78,717,722
49.86% $
50.20%
69.59%
Accrued
Liability
25,501,688
26,424,628
23,935,868
(6)
Unfunded
Actuarial
Annual
Covered
Fiscal Year Ending
September 30, 2009
September 30, 2010
September 30, 2011
$
Payroll
13,830,423
Liability as a
Percentage of
Covered Payroll
184%
13,935,862
14,490,386
190%
165%
Values as of December 31 of the preceding year, the date of the actuarial valuation.
Commitments and Contingencies
1.
Contingencies
The City participates in grant programs which are governed by various rules and regulations of the grantor
agencies. Costs charged to the respective grant programs are subject to audit and adjustment by the grantor
agencies; therefore, to the extent that the City has not complied with the rules and regulations governing the
grants, refunds of any money received may be required and the collectibility of any related receivable may be
impaired. In the opinion of the City, there are no significant contingent liabilities relating to compliance with
the rules and regulations governing the respective grants; therefore, no provision has been recorded in the
accompanying basic financial statements for such contingencies.
2.
Litigation
No reportable litigation was pending against the City at September 30, 2011.
59
M.
Closure and Postclosure Care Cost
State and federal laws and regulations require the City to place a final cover on its Landfill site when it stops
accepting waste and to perform certain maintenance and monitoring functions at the site for thirty years after closure.
Although closure and postclosure care costs will be paid only near or after the date that the landfill stops accepting
waste, the City reports a portion of these closure and postclosure care costs as an operating expense in each period
based on landfill capacity used as of each balance sheet date. The $3,121,949 reported as landfill closure and
postclosure care liability at September 30, 2011, represents the cumulative amount reported to date based on the use
of 86 percent of the estimated capacity of the landfill. The City will recognize the remaining estimated cost of closure
and postclosure care of $354,000 as the remaining estimated capacity is filled. These amounts are based on what it
would cost to perform all closure and postclosure care in 2011. The City expects to close the landfill in the year 2029.
Actualcost may be higher due to inflation, changes in technology, or changes in regulations.
The City is required by state and federal laws and regulations to make annual contributions to a trust to finance
closure and postclosure care. The City is in compliance with these requirements, and, at September 30, 2011,
investments of $2,912,375 fair value are held for these purposes. These are reported as restricted assets on the
balance sheet. The City expects that future inflation costs will be paid from interest earnings on these annual
contributions. However, if interest earnings are inadequate or additional postclosure care requirements are
determined (due to changes in technology or applicable laws or regulations, for example), these costs may need to
be covered by charges to future landfill users or from future tax revenue.
N.
Other Disclosures
The government-wide financial statements include prior period adjustments to correct the following:
Governmental
Business-type
Activities
Activities
Increases (decreases) in net assets:
Correct prior year grant &other receivables
Total
$
(11,276) $
22,697
$
(11,276)$
22,697
The individual fund financial statements include prior period adjustments to correct the following:
Non-Major
Special
Water &
General
Revenue
Sewer
Fund
Funds
Fund
Increases (decreases) in fund equity:
Correct prior yeargrant &otherreceivables
Total
$
(7,925) $
(3,351)$
$
(7,925)$"
(3,351)$
The following funds had expenditures in excess of budget:
Amount of
Expenditures
in Excess of
Budget
Fund
Historical Fund
10,051
3,450
572,750
Special Grants Fund
60
22,697
22,697
Combining and Individual Fund Statements as Supplementary Information
This supplementary information includes financial statements and schedules not required by the Governmental
Accounting Standards Board, nor a part of the basic financial statements, but are presented for purposes of
additional analysis.
NONMAJOR FUNDS
Special Revenue Funds
Economic Development Fund
To account for economic development loans from the Revolving Loan Program.
Community Development Fund
To account for community development block grants.
Forfeiture Fund
To account for seized cash and property, which is designated for law enforcement.
Historical Fund
To account for historical grants given by the City for historical restoration.
Hotel & Motel Fund
To account for the hotel and motel tax revenues that are restricted for enhancement
and promotion of tourism of the City.
Public Safety Fund
To account for training expenditures for public safety personnel funded from the State LEOSE program.
To account for revenue and expenditures for the mayor's committee on disabilities.
Special Grants Fund
To account for grant and donation receipts and expenditures.
Internal Service Funds:
Equipment Replacement Fund
To account for the rental of equipment and motor vehicles to other departments, the
purchase of new equipment and related costs.
Health Insurance Fund
To account for employer contributions, employee premiums, and the cost of health
expenditures for employees, retirees and dependents.
Permanent Fund
Sunset Trust Fund
To account for perpetual care and maintenance of cemeteries once completely full.
61
62
EXHIBIT B-1
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2011
Permanent
Total
Fund
Nonmajor
Special
Sunset
Governmental
Revenue
Trust
Funds
Fund
Funds (See
Exhibit A-3)
ASSETS
>
Cash - Restricted
Total Assets
I
1,297,939
8,210
354,289
624,864
729,265
3,014,567
$
$
--
-
--
$
271,178
271,178
$
1,297,939
8,210
354,289
624,864
1,000,443
3,285,745
Liabilities:
Due to other funds
Total Liabilities
5,262
326,417
331,679
5,262
326,417
331,679
624,864
624,864
377,990
322,175
1,114,079
218,057
377,990
322,175
1,114,079
218,057
271,178
17,724
Fund Balances:
Construction
Hotel/Motel Tax
Sunset Trust
Health & Welfare
Total Fund Balances
271,178
17,724
7,999
2,682,888
3,014,567
63
7,999
2,954,066
271,178
$
271,178
$
3,285,745
64
EXHIBIT B-2
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
Permanent
Total
Fund
Nonmajor
Special
Sunset
Governmental
Revenue
Trust
Funds
Fund
Funds (See
Exhibit A-5)
Revenue:
Taxes:
;
Investment earnings
Intergovernmental
Miscellaneous
Total revenues
1,264,270
270,819
1,170
9,604
1,088,541
204,310
2,838,714
$
$
--
--
1,272
--
1,264,270
270,819
1,170
10,876
1,088,541
204,310
2,839,986
--
1,272
Expenditures:
Current:
228,897
577,512
155,770
1,227,391
2,189,570
General government
Public safety
Total Expenditures
228,897
577,512
155,770
1,227,391
2,189,570
--
--
-
--
650,416
1,272
649,144
Transfers in
Transfers out
181,000
1,977
182,977
(298,784)
(117,784)
(1,271)
(300,055)
(117,078)
531,360
1,978
533,338
269,200
2,424,079
706
2,154,879
(3,351)
2,151,528
I
2,682,888
65
(3,351)
--
$
269,200
271,178
$
2,420,728
2,954,066
COMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
SEPTEMBER 30, 2011
Development
Community
Development
Forfeiture
Historical
Fund
Fund
Fund
Fund
Economic
ASSETS
>
168,856
8,210
$
--
4,886
--
624,864
Cash - Restricted
Total Assets
$
36,105
-
>
801,930
$
~
--
--
--
--
40,991
--
315,170
$
81,098
$
--
315,170
--
$
81,098
Liabilities:
Due to other funds
Total Liabilities
Fund Balances:
624,864
Construction
315,170
81,098
Hotel/Motel Tax
177,066
40,991
801,930
40,991
Health & Welfare
Total Fund Balances
$
801,930
66
$
40,991
81,098
315,170
$
315,170
$_
81,098
EXHIBIT B-3
Total
Nonmajor
Special
>
Hotel &
Public
Mayor's
Special
Revenue
Motel
Safety
Committee
Grants
Fund
Fund
on Disabilities
Fund
Funds (See
Exhibit B-1)
1,032,981
$
--
7,999
--
-
~
--
--
1,032,981
-
$
$
--
349,403
-
--
7,005
$
$
-
~
--
>
7,005
$
-
7,999
$
377,990
727,393
$
5,262
$
$
326,417
331,679
1,297,939
8,210
354,289
624,864
729,265
3,014,567
5,262
326,417
331,679
624,864
7,005
1,032,981
--
--
-
1,032,981
$
1,032,981
-
7,005
$
7,005
$
377,990
322,175
1,114,079
17,724
218,057
17,724
7,999
--
7,999
395,714
7,999
67
377,990
--
$
727,393
7,999
2,682,888
$
3,014,567
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
NONMAJOR SPECIAL REVENUE FUNDS
Development
Community
Development
Forfeiture
Historical
Fund
Fund
Fund
Fund
Economic
Revenue:
Taxes:
270,819
Investment earnings
Intergovernmental
Miscellaneous
Total revenues
3,089
130
1,048
387
26,044
29,133
159,436
171,083
330,649
271,867
387
Expenditures:
Current:
General government
Public safety
130,347
Total Expenditures
--
29,133
184,378
184,378
130,347
30,051
30,051
146,271
141,520
(29,664)
25,000
100,000
Transfers in
100,000
(149,546)
(149,546)
129,133
(3,275)
141,520
(4,664)
Balances - Beginning
Period Adjustment
Balances - Beginning as Restated
Balances - Ending
673,507
46,907
173,650
85,762
Transfers out
Fund
Prior
Fund
Fund
(2,641)
(710)
672,797
$
801,930
68
25,000
--
173,650
44,266
$
40,991
$
315,170
$
85,762
81,098
EXHIBIT B-4
Total
Nonmajor
Special
5
Hotel &
Public
Mayor's
Special
Revenue
Motel
Safety
Committee
Grants
Fund
Fund
on Disabilities
Fund
Funds (See
Exhibit B-2)
1,264,270
$
$
~
1,170
3,924
-
--
--
--
--
43
5,881
--
~
$
$
--
-
1,269,364
40
943
2,800
2,840
923,224
4,383
928,550
-
5,924
~
4,450
4,450
827,905
1,815
(1,610)
100,645
649,144
--
~
1,008,330
1,008,330
—
(25,000)
(25,000)
„
__
-
-
-
--
236,034
796,947
5,190
56,000
--
5,190
7,005
7,999
69
(298,784)
(117,784)
32,407
531,360
363,307
2,154,879
363,307
2,151,528
(3,351)
-
9,609
$
181,000
(124,238)
(68,238)
9,609
--
$
182
(1,610)
1,815
-
796,947
1,032,981
--
-
261,034
J
4,109
228,897
577,512
155,770
1,227,391
2,189,570
4,109
~
270,819
1,170
9,604
1,088,541
204,310
2,838,714
98,550
573,403
155,770
. .
1,264,270
$
395,714
$
2,682,888
EXHIBIT B-5
ECONOMIC DEVELOPMENT FUND
SPECIAL REVENUE FUND
BUDGETARY COMPARISON SCHEDULE
Variance
Positive
Budget
(Negative)
Actual
Revenue:
Investment earnings
141,694
141,794
3,089
26,044
29,133
141,794
29,133
(112,661)
100,000
100,000
100,000
100,000
;
Miscellaneous
Total revenues
100
$
$
2,989
(115,650)
(112,661)
Expenditures:
Total Expenditures
Transfers in
__
--
141,794
129,133
(12,661)
27,715
673,507
645,792
27,715
J
70
169,509
$
(710)
(710)
672,797
645,082
632,421
801,930
$
EXHIBIT B-6
COMMUNITY DEVELOPMENT FUND
Variance
Positive
Budget
(Negative)
Actual
Revenue:
Investment earnings
Intergovernmental
;
Miscellaneous
Total revenues
-250,000
169,000
419,000
3I
130
159,436
171,083
330,649
$
130
(90,564)
2,083
(88,351)
Expenditures:
Community Development
609,000
184,378
424,622
609,000
184,378
424,622
(190,000)
146,271
336,271
(149,546)
(149,546)
(149,546)
(149,546)
Total Expenditures
Transfers out
„
--
(190,000)
(3,275)
46,907
46,907
(2,641)
J
71
46,907
(143,093)
186,725
$
44,266
40,991
(2,641)
(2,641)
184,084
EXHIBIT B-7
FORFEITURE FUND
Variance
Positive
Budget
(Negative)
Actual
Revenue:
59,900
Investment earnings
100
60,000
270,819
1,048
271,867
143,242
143,242
130,347
130,347
12,895
12,895
143,242
130,347
12,895
(83,242)
141,520
224,762
(83,242)
141,520
224,762
Total revenues
Expenditures:
General government:
Non-Departmental
Total Expenditures
>
72
173,650
90,408
$
173,650
315,170
$
210,919
948
211,867
$
224,762
EXHIBIT B-8
HISTORICAL FUND
Variance
Positive
Budget
(Negative)
Actual
Revenue:
Investment earnings
Total revenues
200
387
200
387
20,000
30,051
(10,051)
20,000
30,051
(10,051)
(19,800)
(29,664)
25,000
25,000
25,000
25,000
5,200
(4,664)
$
187
187
Expenditures:
Total Expenditures
(9,864)
Transfers in
85,762
J
73
90,962
$
85,762
81,098
--
(9,864)
$
(9,864)
EXHIBIT B-9
HOTEL & MOTEL FUND
Variance
Positive
Budget
(Negative)
Actual
Revenue:
Taxes:
;
Investment earnings
Total revenues
850,000
3>
$
414,270
(3,830)
5,000
2,400
857,400
1,264,270
1,170
3,924
1,269,364
1,594,200
1,008,330
585,870
1,594,200
1,008,330
585,870
(736,800)
261,034
997,834
(25,000)
(25,000)
(25,000)
(25,000)
(761,800)
236,034
997,834
796,947
1,032,981
997,834
1,524
411,964
Expenditures:
Total Expenditures
Transfers out
796,947
>
74
35,147
$
EXHIBIT B-10
PUBLIC SAFETY FUND
Variance
Positive
Budget
(Negative)
Actual
Revenue:
Investment earnings
Intergovernmental
>
Total revenues
43
$
43
5,500
5,500
5,881
5,924
5,000
2,000
5,500
3,000
1,109
4,109
5,500
4,109
1,391
1,815
1,815
1,815
1,815
381
424
Expenditures:
Public Safety:
Police Department
Fire Protection
500
Total Public Safety
Total Expenditures
__
--
5,190
5,190
75
(609)
1,391
5,190
$
7,005
—
$
1,815
EXHIBIT B-11
MAYOR'S COMMITTEE ON DISABILITIES FUND
Variance
Positive
Budget
(Negative)
Actual
Revenue:
Investment earnings
>
Miscellaneous
Total revenues
50
$
40
$
(10)
1,000
1,050
2,800
2,840
1,800
1,790
1,000
4,450
(3,450)
1,000
4,450
(3,450)
Expenditures:
Total Expenditures
50
(1,610)
(1,660)
50
(1,610)
(1,660)
9,609
7,999
(1.660)
9,609
>
76
9,659
$
EXHIBIT B-12
SPECIAL GRANTS FUND
Variance
Positive
Budget
(Negative)
Actual
Revenue:
Investment earnings
Intergovernmental
\
Miscellaneous
Total revenues
-1,480,155
100,000
1,580,155
5>
943
$
943
923,224
4,383
928,550
(556,931)
(95,617)
(651,605)
108,595
108,595
98,550
98,550
10,045
10,045
68,560
547,840
2,448
12,993
10,122
573,403
(479,280)
(2,448)
(12,993)
(10,122)
(504,843)
50,254
12,911
52,000
40,605
155,770
(50,254)
(9,911)
(52,000)
182
(182)
255,155
827,905
(572,750)
1,325,000
100,645
(1,224,355)
Expenditures:
General government:
Public Safety:
Police Department
Emergency Services
Fire Protection
Animal Control
Total Public Safety
68,560
Historic Sites
Library
3,000
Recreation
Parks
75,000
78,000
Total Culture and Recreation
—
Total Expenditures
34,395
(77,770)
Transfers in
56,000
56,000
56,000
(124,238)
(68,238)
(124,238)
(124,238)
1,381,000
32,407
(1,348,593)
363,307
363,307
Transfers out
>
77
1,744,307
$
395,714
—
$
(1,348,593)
EXHIBIT B-13
DEBT SERVICE FUND
Variance
Positive
Budget
(Negative)
Actual
Revenue:
Taxes:
Property taxes
Investment earnings
;
1,177,900
Total revenues
(945)
1,178,500
1,176,955
2,942
1,179,897
755,000
423,500
1,178,500
755,000
423,303
1,178,303
197
1,178,500
1,178,303
197
1,594
1,594
1,594
1,594
234,210
235,804
1,594
$
600
$
2,342
1,397
Expenditures:
Debt Service:
Principal
Interest
Total Debt Service
Total Expenditures
__
--
234,210
234,210
78
$
197
EXHIBIT B-14
SUNSET TRUST FUND
PERMANENT FUND
Variance
Positive
Budget
(Negative)
Actual
Revenue:
Investment earnings
Total revenues
2,400
2,400
1,272
1,272
$
2,400
1,272
(1,128)
4,500
1,977
(2,523)
(2,400)
(1,271)
(1,128)
(1,128)
Expenditures:
Total Expenditures
Transfers in
Transfers out
706
(1,394)
4,500
1,978
(2,522)
269,200
J
79
1,129
2,100
273,700
269,200
$
271,178
—
$
(2,522)
EXHIBIT B-15
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
SEPTEMBER 30, 2011
Total
Internal
Equipment
Replacement
Health
Service
Insurance
Fund
Fund
Funds (See
Exhibit A-8)
ASSETS
Current Assets:
>
Total Current Assets
Capital Assets (net accumulated depreciation):
Office furniture and equipment
Less accumulated depreciation
Total Capital Assets
$
I
1,075,612
$
1,075,612
2,954,410
2,954,410
2,754,774
2,754,774
(2,261,821)
(2,261,821)
492,953
985,906
Total Noncurrent Assets
Total Assets
1,878,798
1,878,798
2,371,751
492,953
985,906
--
-
$
1,075,612
$
3,447,363
LIABILITIES AND NET ASSETS
LIABILITIES
Current Liabilities:
Accrued expenses
Total Current Liabilities
Total Liabilities
129,565
129,565
129,565
129,565
129,565
129,565
946,047
946,047
492,954
2,824,844
3,317,798
NET ASSETS
Investment in capital assets, net of related debt
Total Net Assets
492,954
1,878,797
2,371,751
Total Liabilities and Net Assets
2,371,751
Unrestricted net assets
80
$
1,075,612
$
3,447,363
EXHIBIT B-16
COMBINING STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN FUND NET ASSETS
INTERNAL SERVICE FUNDS
Total
Internal
Equipment
Replacement
Health
Service
Insurance
Fund
Fund
Funds (See
Exhibit A-9)
OPERATING REVENUES
Charges for sales and services
Equipment rental
Employer premiums
Employee premiums
Total charges for sales and services
>
57,349
570,153
$
$
57,349
627,502
1,317,624
388,276
1,705,900
570,153
1,317,624
388,276
2,333,402
Total Operating Revenues
42,411
669,913
1,705,900
42,411
2,375,813
Non-departmental
Depreciation and amortization
Total Operating Expenses
284,726
284,726
Other:
1,830,977
284,726
2,115,703
1,830,977
Operating Income
1,830,977
385,187
(125,077)
260,110
8,498
3,043
11,541
5,573
5,573
14,071
3,043
17,114
396,728
(119,504)
277,224
NON-OPERATING REVENUES (EXPENSES)
Interest revenue
Gain on sale of assets
Total Non-operating Revenues (Expenses)
Income before Transfers
Transfers in
(119,504)
372,228
Total Net Assets - Beginning
Total Net Assets - Ending
(24,500)
(24,500)
Transfers out
2,371,751
81
3,065,074
1,065,551
1,999,523
$
252,724
$_
946,047
$
3,317,798
EXHIBIT B-17
COMBINING STATEMENT OF CASH FLOWS
ALL INTERNAL SERVICE FUNDS
Total
Internal
Equipment
Replacement
Health
Service
Insurance
Fund
Fund
Funds (See
Exhibit A-10)
Cash Flows from Operating Activities:
Cash Received from Customers
$
99,760
Cash Receipts (Payments) for Quasi-external
Operating Transactions with Other Funds
Cash Payments to Employees
Cash Payments to Suppliers for Goods and Services
Other Operating Cash Receipts (Payments)
$
570,153
388,276
$
488,036
1,317,624
1,887,777
(1,793,206)
(1,793,206)
(87,306)
582,607
669,913
Cash Flows from Non-capital Financing Activities:
Transfers From (To) Other Funds
Net Cash Provided (Used) by Non-capital
Financing Activities
(24,500)
(24,500)
__
(24,500)
(24,500)
mm
Cash Flows from Capital and Related Financing Activities:
Acquisition or Construction of Capital Assets
Proceeds from Sale of Capital Assets
Net Cash Provided (Used) for Capital and
Related Financing Activities
(146,563)
(146,563)
-
5,707
5,707
(140,856)
(140,856)
__
Cash Flows from Investing Activities:
Interest and Dividends on Investments
8,498
8,498
5,573
5,573
513,055
1,365,743
1,157,345
Net Cash Provided (Used) for Investing Activities
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Year
Reconciliation of Operating Income to Net Cash
Provided by Operating Activities:
Operating Income (Loss)
Adjustments to Reconcile Operating Income to Net
Cash Provided by Operating Activities
(81,733)
>
1,878,798
$
1,075,612
$
431,322
2,523,088
2,954,410
>
385,187
$
(125,077)
$
260,110
Depreciation
284,726
Change in Assets and Liabilities:
Increase (Decrease) in Accrued Expenses
Increase (Decrease) in Unearned Revenue
Total Adjustments
37,771
284,726
>
284,726
-
-
82
14,071
14,071
669,913
37,771
37,771
$
(87,306)
$
322,497
582,607
EXHIBIT B-18
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
ALL AGENCY FUNDS
YEAR ENDED SEPTEMBER 30, 2011
Balance
Balance
October 1,
September 30,
2010
Additions
Deductions
2011
FSA CAFETERIA FUND
ASSETS
Cash & Investments
$
3,526 $
50,753 $
3,426
3,526 $
50,853
5,209
56,062
$
5,209
55,962 $
$
3,426
47,381 $
2,500
49,881 $
47,063
7,500
54,563
$
3,426
$
3,426
Due from Other Funds
Total Assets
$
LIABILITIES
Accrued Expenses
$
3,108 $
$
5,000
8,108 $
Due to Other Funds
Total Liabilities
83
84
STATISTICAL SECTION
This part of the City of Nacogdoches'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 health.
Contents
Page
Financial Trends
86
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 the help the reader assess the City's
most significant local revenue source, the property tax.
96
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
103
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.
107
Operating Information
109
These schedules contain service and infrastructure data to help the
reader understand how the information in the City's financial report
relates to the services the City provides and the activities it performs.
85
NET ASSETS BY COMPONENT
LAST NINE FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Fiscal Year
2004
2003
2005
2006
2007
Invested in Capital Assets,
Net of Related Debt
$
19,900,599
$
4,979,860
6,679,561
Restricted
Unrestricted
24,661,524
$
5,358,685
2,950,254
25,014,866
$
1,453,514
5,990,263
26,404,596
$
2,477,435
5,793,886
27,402,712
2,019,237
6,791,043
Total Governmental
Activities Net Assets
$
31,560,020
$
32,970,463
$
32,458,643
$
34,675,917
$
36,212,992
$
24,981,155
$
18,004,346
$
20,194,771
$
21,362,144
$
28,629,199
Net of Related Debt
9,367,213
4,185,667
Restricted
Unrestricted
15,969,911
6,003,086
16,808,889
3,714,895
18,490,756
5,942,413
15,781,451
5,971,748
Total Business-type
Activities Net Assets
$
38,534,035
$
39,977,343
$
40,718,555
$
45,795,313
$
50,382,398
$
44,881,754
$
42,665,870
$
45,209,637
$
47,766,740
$
56,031,911
Primary Government
Net of Related Debt
14,347,073
10,865,228
Restricted
Unrestricted
21,328,596
8,953,340
18,262,403
9,705,158
20,968,191
11,736,299
17,800,688
12,762,791
Total Primary
Government Net Assets
$
70,094,055
$
72,947,806
$
73,177,198
$
80,471,230
Note: The city began to report accrual information when it implemented GASB Statement 34 in fiscal year 2003.
86
$
86,595,390
TABLE C-1
Fiscal Year
2008
$
29,320,667
1,106,353
2009
$
6,355,578
29,447,326
1,430,278
2010
$
7,008,344
28,032,150
1,778,113
2011
$
8,292,798
27,347,322
3,420,656
8,917,507
$
36,782,598
$
37,885,948
$
38,103,061
$
39,685,485
$
29,208,024
$
30,538,121
$
33,003,538
$
36,261,278
12,413,601
14,193,349
11,686,374
9,241,159
13,240,115
13,215,930
18,349,997
22,911,370
$
54,861,740
$
57,947,400
$
63,039,909
$
68,413,807
$
58,528,691
$
59,985,447
$
61,035,688
$
63,608,600
13,519,954
19,595,693
$
91,644,338
$
15,623,627
20,224,274
13,464,487
26,642,795
12,661,815
31,828,877
95,833,348
$ 101,142,970
$ 108,099,292
87
EXPENSES, PROGRAM REVENUES, AND NET (EXPENSE)/REVENUE
Fiscal Year
2004
2003
2005
2006
2007
Expenses
General Government
$
4,278,281
Public Safety
8,785,241
Interest on Long-Term Debt
$
3,890,619
$
3,956,380
$
4,136,440
$
4,671,012
9,307,405
9,929,265
10,893,961
10,568,566
1,992,165
2,335,087
2,297,656
2,312,057
2,428,785
2,538,091
2,070,124
2,009,392
2,151,859
2,229,219
479,581
715,497
904,271
1,263,216
919,828
711,832
701,425
671,852
645,773
18,513,606
18,794,648
19,609,615
21,070,440
21,806,571
7,393,180
2,292,230
8,366,522
2,551,604
8,931,775
2,936,791
9,450,585
2,536,706
9,771,736
3,142,314
-
Total Governmental
Activities Expenses
Water and Sewer
Sanitation
Airport
Total Business-type Activities Expenses
Total Primary Government Expenses
-
-
-
$
9,685,410
28,199,016
$
10,918,126
29,712,774
$
11,868,566
31,478,181
$
$
764,729
$
1,946
$
-
$
11,987,291
33,057,731
$
12,914,050
34,720,621
Program Revenues
Charges for Services:
General Government
$
26,297
Public Safety
243,713
251,397
231,479
357,328
254,441
305,362
280,951
283,935
239,720
274,645
Operating Grants and Contributions
166,916
-
Capital Grants and Contributions
99,743
386,291
643,359
488,580
-
1,902,127
920,585
1,158,773
3,406,084
1,578,572
10,679,136
10,748,848
11,305,493
15,143,298
15,225,096
3,947,293
4,288,461
4,494,737
5,181,120
5,575,512
103,987
-_
856,273
705,049
-_
Total Governmental
Activities Program Revenues
Charges for Services:
Water and Sewer
Sanitation
Airport
-
Operating Grants and Contributions
-
Capital Grants andContributions
•
•
14,626,429
15,037,309
Total Business-type
Activities Program Revenues
Program Revenues
-_
-_
15,800,230
•
20,324,418
20,800,608
$
16,528,556
$
15,957,894
$
16,959,003
$
23,730,502
$
22,379,180
Net (Expense)/Revenue
$
$
(18,450,842)
3,931,664
(14,519,178)
$
(17,664,356)
8,337,127
(9,327,229)
$
$
(17,874,063)
4,119,183
(13,754,880)
$
Total Primary Government Net Expense
(16,611,479)
4,941,019
(11,670,460)
(20,227,999)
7,886,558
(12,341,441)
$
$
88
$
$
TABLE C-2
2008
2009
4,710,540
$
$
4,145,739
$
2011
4,138,182
$
4,202,671
11,521,875
12,063,000
12,479,613
13,162,688
2,489,948
2,706,133
2,629,777
2,658,599
2,368,308
2,520,571
2,557,780
2,451,813
995,125
1,003,611
1,045,787
1,245,874
618,205
589,785
649,443
414,976
22,704,001
23,028,839
23,500,582
24,136,621
10,322,517
11,387,995
11,245,042
12,119,007
3,007,322
2,821,980
2,459,836
2,774,451
509,238
391,939
420,505
565,029
13,839,077
14,601,914
14,125,383
15,458,487
36,543,078
$
314,953
$
37,630,753
-
$
$
37,625,965
$
-
Si
39,595,108
218,115
1,581,121
1,596,806
1,819,483
255,668
254,506
249,601
231,946
171,083
1,311,182
-
-
-
-
452,022
$
2010
-
424,056
567,911
25,997
613,708
1,411,841
3,146,809
2,296,460
3,233,048
16,208,899
5,558,991
452,477
16,605,772
5,555,373
306,287
17,439,844
5,611,411
363,358
19,139,784
5,683,453
473,232
22,220,367
22,467,432
23,414,613
25,296,469
23,632,208
$ (21,292,160)
8,381,290
$ (12,910,870)
$
25,614,241
$ (19,882,030)
7,865,518
$ (12,016,512)
$
25,711,073
$ (21,204,122)
9,289,230
$ (11,914,892)
$
28,529,517
$ (20,903,573)
9,837,982
$ (11,065,591)
GENERAL REVENUES AND TOTAL CHANGE IN NET ASSETS
Fiscal Year
2003
2004
2005
2006
General Revenues and Other Changes in Net Assets
Taxes
Property Taxes
Franchise Taxes
Sales Taxes
Other Taxes
Unrestricted Grants and Contributions
Penalties & Interest on Taxes
Investment Earnings
Miscellaneous
Transfers
Gain (loss) on Refunding of Bonds
Total Governmental Activities
Investment Earnings
Miscellaneous
Transfers
Gain (loss) on Refunding of Bonds
Loss on change in estimated - Depreciation
Total Business-type Activities
$
5,581,366
$
1,949,325
4,094,016
529,414
259,391
734,876
212,346
642,020
1,323,859
5,801,787
$
1,961,594
4,341,154
470,009
17,654
787,724
-
1,098,292
360,242
303,356
4,263,123
-
-
6,405,595
2,120,014
4,672,339
636,791
-
282
91,497
$
969,026
416,185
423,240
3,833,317
105,350
105,508
3,777,187
-
6,109,766
2,043,203
4,405,625
480,781
-
-
-
15,418,110
17,368,249
18,681,143
19,859,752
194,615
218,302
586,725
1,002,754
365,493
-
(1,323,859)
(3,777,187)
-
(97,529)
(9,883,341)
(10,744,621)
$ 4,673,489
$ (1,193,369)
(5,803,602)
-
-
(3,833,317)
(4,263,123)
-
-
-
-
-
-
-
-
$
(3,558,885)
13,809,364
$
$
(505,815)
$
(3,246,592)
15,434,551
-
(3,260,369)
$
16,599,383
$ (6,996,971)
560,298
$
54,483
230,301
$
915,373
90
$
2,195,396
$
5,076,758
7,272,154
685,072
TABLE C-3
Fiscal Year
2007
$
2008
6,577,039
$
2,309,872
5,299,060
744,963
229,778
1,553,071
431,091
104,696
4,470,800
6,767,951
2009
$
2,430,873
5,295,485
809,755
109,544
1,415,563
194,198
133,889
4,530,848
7,038,229
$
2,441,364
5,282,325
1,054,277
2011
7,387,124
$
5,148,402
2,562,889
1,030,457
-
(17,480)
-
2010
7,550,954
5,588,122
2,742,062
1,264,270
-
-
143,016
31,636
369,026
4,994,900
22,058
136,822
33,509
429,194
4,978,443
12,451
141,815
52,247
425,130
4,720,686
11,992
21,720,370
21,670,626
21,376,831
21,719,291
22,497,278
1,114,002
628,268
121,565
54,489
96,787
(4,470,800)
(4,530,848)
(2,090)
(4,994,900)
(4,978,443)
143,477
(4,720,686)
27,528
137,119
-
$
$
(3,356,798)
18,363,572
$
1,492,371
$
4,529,760
$
6,022,131
(3,904,670)
17,765,956
$
378,466
$
4,476,620
$
4,855,086
(4,729,858)
16,646,973
$
16,822,865
$
18,010,498
1,494,801
$
515,169
4,392,804
4,907,973
$
1,593,705
5,351,202
6,944,907
(4,896,426)
3,135,660
$
4,630,461
$
91
(4,486,780)
$
FUND BALANCES OF GOVERNMENTAL FUNDS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Fiscal Year
2003
2004
2005
2006
General Fund
Reserved
Unreserved
$
132,852
7,361,107
$
103,046
6,665,000
$
110,680
5,976,975
$
127,599
7,016,497
$
7,493,959
$
6,768,046
$
6,087,655
$
7,144,096
$
4,056,713
$
1,617,737
$
1,319,007
$
1,205,517
Restricted
Committed
Assigned
Unassigned
Total General Fund
All Other Governmental Funds
Reserved
Unreserved, reported In:
Special Revenue Funds
923,147
412,369
227,206
252,771
Non-spendable
Restricted
Committed
Assigned
Unassigned
Total All Other Governmental Funds
$
4,979,860
$
2,030,106
$
1,546,213
$
1,458,288
GASB 54 classification of fund balances was implemented in fiscal year 2011.
92
TABLE C-4
Fiscal Year
2007
$
190,264
2008
$
7,785,248
159,672
2009
$
5,330,208
161,114
2010
$
5,409,703
2011
196,145
6,007,062
238,785
7,372,947
$
7,975,512
$
5,489,880
$
5,570,817
$
6,203,207
$
$
791,210
$
1,109,511
$
1,269,163
$
1,581,967
$
575,928
540,849
904,544
7,611,732
1,076,322
624,864
2,557,007
7,999
$
1,367,138
$
1,650,360
$
2,173,707
$
2,658,289
93
$
3,189,870
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
Fiscal Year
2003
2004
2005
2006
Revenue
Taxes:
General property taxes
$
5,709,787
$
Investment earnings
413,114
212,283
802,930
Grants
Payments received on loans
-
690,703
15,381,082
Miscellaneous
Total revenues
Expenditures
General government
Public safety
4,235,762
8,394,407
$
-
6,158,691
6,929,610
249,572
811,257
323,400
211,417
880,439
$
6,607,542
7,429,144
347,730
903,980
284,404
341,040
2,640,037
-
-
369,721
18,923,598
360,890
15,925,276
4,095,785
9,004,855
1,403,451
1,889,578
1,300,035
2,335,343
5,894,760
6,772,757
277,777
599,943
324,031
104,996
364,984
175,042
143,684
14,657,974
6,572,756
371,562
607,947
General sales and other taxes
3,892,047
719,293
9,696,845
1,465,090
1,838,301
1,103,874
3,993,394
10,862,693
1,415,081
2,077,511
1,673,033
360,000
678,675
4,199,141
22,350,778
455,000
659,573
2,148,776
21,259,506
480,000
636,268
1,126,602
22,264,582
Debt service:
Principal
Interest, fiscal charges, issue cost
Other capital outlays
Total expenditures
336,636
1,056,457
4,092,318
21,750,958
Other financing sources (uses)
Refunding bonds premium
Payment to escrow agent
Refunding bonds issued
56,768
(1,663,503)
1,795,000
1,929,886
Transfers in
Proceeds from leases payable
Proceeds from notes payable
Sale of capital assets
$
Debt service as a percentage
of noncapital expenditures
981,616
7.19%
94
$
$
(3,746,600)
641,216
5.02%
-
4,351,413
(63,790)
(302,313)
312,128
144,517
19,833
3,946,204
1,994,826
Capital outlays included in functions
-
4,160,130
-
-
(4,375,050)
-
(272,019)
-
$
-
-
-
-
Net changes in fund balances
-
-
4,053,873
(123,325)
Transfers out
-
-
-
-
-
-
4,169,945
$
$
(1,164,285)
945,650
5.81%
4,287,623
$
946,639
$
1,434,805
5.66%
TABLE C-5
Fiscal Year
2007
$
6,715,161
2008
$
8,353,895
398,409
1,229,559
554,314
410,084
848,781
303,305
2009
7,023,012
$
8,536,113
367,716
1,075,416
269,315
180,968
362,486
2010
7,030,265
$
8,777,966
308,055
1,263,072
264,500
27,454
1,311,182
-
2011
7,349,890
$
8,741,748
370,158
1,216,648
259,601
24,151
450,053
-
7,537,329
9,594,454
330,381
1,489,102
231,946
38,175
1,181,619
-
-
454,897
512,042
504,181
18,813,508
18,269,923
19,494,536
18,916,430
476,134
20,879,140
4,532,560
10,146,783
1,475,402
2,212,623
1,448,234
4,401,663
11,521,768
1,869,139
2,326,499
969,843
4,102,141
12,505,035
1,795,160
2,425,351
1,030,252
4,057,726
12,302,459
1,762,161
2,489,884
1,002,418
4,193,276
13,021,070
1,699,845
2,346,698
1,227,391
505,000
615,378
1,677,265
22,613,245
520,000
593,248
3,016,659
25,218,819
540,000
570,433
646,985
23,615,357
625,000
721,601
28,073
22,989,322
755,000
423,303
6,362
23,672,945
147,453
(4,440,000)
4,611,372
4,782,781
(116,072)
(227,433)
4,495,300
695,563
$
$
363,284
$
5.30%
(286,591)
(2,393,548)
406,344
4.70%
5,284,748
(539,562)
(219,491)
27,976
5,019,400
4,555,348
$
4,565,000
5,222,434
5,278,015
12,821
5,288,217
4,745,186
$
898,579
$
1,215,325
$
1,951,381
$
941,639
$
309,668
$
564,616
5.15%
6.31%
95
5.37%
TAX REVENUES BY SOURCE, GOVERNMENTAL FUNDS
TABLE C-6
LAST TEN FISCAL YEARS
Fiscal Year
2002
$
General
General Sales
Property Taxes
Taxes
5,381,889
$
Utility Taxes
4,160,173
3>
2,012,984
Other Taxes
$
818,413
Total
$
12,373,459
2003
5,709,787
4,094,016
1,556,588
922,152
12,282,543
2004
5,894,760
4,341,154
1,960,919
470,684
12,667,517
2005
6,158,691
4,405,625
2,042,553
481,432
13,088,301
2006
6,607,542
4,672,339
2,120,015
636,790
14,036,686
2007
6,715,161
5,299,060
2,309,871
744,964
15,069,056
2008
7,023,012
5,295,485
2,430,873
809,755
15,559,125
2009
7,030,265
5,282,325
2,441,364
1,054,277
15,808,231
2010
7,349,890
5,148,402
2,562,889
1,030,457
16,091,638
2011
7,537,329
5,588,122
2,742,062
1,264,270
17,131,783
96
TABLE C-7
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
Taxable
Assessed
Fiscal
Real
Personal
Year
Property
Property
2002
$
965,268,950
3>
130,944,060
i>
Total
Estimated
Value as a
Direct
Actual
Percentage of
Assessed
Tax
Taxable
Actual Taxable
Value
Rate
Value
Value
Less:
Total Taxable
Tax-Exempt
Property
116,350,770
$
979,862,240
3>
0.61
$
979,862,240
100.0%
2003
1,031,667,680
140,728,360
119,206,620
1,053,189,420
0.5792
1,053,189,420
100.0%
2004
1,083,386,580
151,862,180
126,004,880
1,109,243,880
0.56
1,109,243,880
100.0%
2005
1,111,952,410
176,346,470
132,742,020
1,155,556,860
0.56
1,155,556,860
100.0%
2006
1,130,135,140
187,107,880
135,389,260
1,181,853,760
0.56
1,181,853,760
100.0%
2007
1,155,542,090
227,676,450
141,327,680
1,241,890,860
0.56
1,241,890,860
100.0%
2008
1,200,681,245
234,610,660
143,778,360
1,291,513,545
0.55
1,291,513,545
100.0%
2009
1,309,961,820
231,865,480
186,018,005
1,355,809,295
0.55
1,355,809,295
100.0%
2010
1,315,013,120
214,370,010
189,800,162
1,339,582,968
0.55
1,339,582,968
100.0%
2011
1,382,007,320
206,455,710
22,735,380
1,361,109,230
0.56937
1,361,109,230
100.0%
Source: County Board of Equilization and Assessment
97
DIRECT AND OVERLAPPING PROPERTY TAX RATES
Fiscal
Operating
&
Millage
Year
Rate
2002
0.5365
2003
0.4765
2004
City of Nacogdoches
General
Obligation
Debt
Total
City
Service
$
0.0735
Rate
J
Nacogdoches Independent School District
Operating
General
&
Obligation
Total
Millage
Debt
NISD
Rate
Service
0.2362
$
0.61
1.5
0.1027
0.5792
1.5
0.2127
1.7127
0.46189
0.09811
0.56
1.5
0.21
1.71
2005
0.478
0.082
0.56
1.5
0.2
1.7
2006
0.4629
0.0971
0.56
1.37
0.22
1.59
2007
0.4646
0.0954
0.56
1.17
0.2
1.37
2008
0.4598
0.0902
0.55
1.17
0.2
1.37
2009
0.4619
0.0881
0.55
1.17
0.2
1.37
2010
0.4663
0.0837
0.55
1.17
0.2
1.37
2011
0.480463
0.088904
0.569367
1.17
0.2
1.37
Source: Central Appraisal District
98
$
Rate
1.7362
TABLE C-8
Nacogdoches County
$
Operating
&
Millage
General
Obligation
Debt
County
Rate
Service
Rate
0.34258
$
0.09492
Total
$
0.4375
0.3491
0.0821
0.4312
0.346
0.0702
0.4162
0.3216
0.0796
0.4012
0.3373
0.0869
0.4242
0.3553
0.079
0.4343
0.3553
0.079
0.4343
0.3659
0.0684
0.4343
0.361097
0.073203
0.4343
0.361097
0.073203
0.4343
99
TABLE C-9
PRINCIPAL PROPERTY TAX PAYERS
CURRENT YEAR AND NINE YEARS AGO
2011
2002
Percentage
of Total City
Taxpayer
Norbord Texas LP
Taxable
Taxable
Taxable
Taxable
Assessed
Assessed
Assessed
Assessed
Value
Value
Value
$
Nibco of Texas Inc
Pilgrim's Pride Corp
Wal Mart Nacogdoches
Oncor Electric Delivery
Cooper Power Systems Inc
Southwest Canners of Tx
Campus Crest at Nac
Medhorizons Ltd
Lowes Home Center
Percentage
of Total City
Rank
31,965,760
1
19,093,740
16,262,290
16,006,560
14,963,370
14,916,650
14,633,760
12,473,860
11,225,520
9,357,060
2
1.4%
3
1.2%
4
1.2%
5
1.1%
6
1.1%
7
1.1%
8
0.9%
9
0.8%
10
0.7%
$
5,205,100
13,870,010
5
0.7%
2
1.8%
17,080,190
1
2.3%
9,687,200
5,486,400
4,720,180
3,970,080
3,750,000
3,655,240
3,636,980
$
160,898,570
$
Source: Central Appraisal District
100
Value
2.4%
Nacogdoches Medical Center
Sunridge Apts
University Mall
Windhill Apts
Cambridge Court
Schwab, Joseph L & Marriette
Tipton Ford
Total
Rank
71,061,380
3
1.3%
4
0.7%
6
0.6%
7
0.5%
8
0.5%
9
0.5%
10
0.5%
TABLE C-10
PROPERTY TAX LEVIES AND COLLECTIONS
Collected Within the
Fiscal
for the
Year
Fiscal Year
2002
$
5,414,567
Collections
Fiscal Year of the Levy
Percentage
of Levy
Amount
Taxes Levied
i>
4,907,949
90.6%
in
Total Collections to Date
Subsequent
Years
J
Amount
495,077
$
Percentage
of Levy
5,403,026
99.8%
2003
5,675,361
5,089,164
89.7%
572,752
5,661,916
99.8%
2004
5,899,878
5,652,541
95.8%
229,011
5,881,552
99.7%
2005
6,188,498
5,956,370
96.2%
208,741
6,165,111
99.6%
2006
6,473,298
6,287,172
97.1%
159,106
6,446,278
99.6%
2007
6,617,393
6,442,955
97.4%
135,188
6,578,143
99.4%
2008
6,830,952
6,684,618
97.9%
95,099
6,779,717
99.2%
2009
7,064,035
6,818,879
96.5%
160,973
6,979,852
98.8%
2010
7,453,972
7,273,436
97.6%
7,273,436
97.6%
2011
7,574,992
7,393,636
97.6%
7,393,636
97.6%
-
-
Sources: County Board of Equalization and Assessment and County Department of Finance
101
TABLE C-11
DIRECT AND OVERLAPPING SALES TAX RATES
City
Fiscal
Direcl
Year
Rate
Nacogdoches
County
Hospital
State
of
Total
Texas
Rate
2002
0.01
0.01
0.0625
0.0825
2003
0.01
0.01
0.0625
0.0825
2004
0.01
0.01
0.0625
0.0825
2005
0.01
0.01
0.0625
0.0825
2006
0.01
0.01
0.0625
0.0825
2007
0.01
0.01
0.0625
0.0825
2008
0.01
0.01
0.0625
0.0825
2009
0.01
0.01
0.0625
0.0825
2010
0.01
0.01
0.0625
0.0825
2011
0.01
0.01
0.0625
0.0825
Sources: City Budget Office and County Department of Finance
102
28,534
34,444
12,924
11,405,000
10,865,000
10,365,000
9,610,000
2008
2011
2010
2009
2007
-
-
-
-
-
87,531
58,575
188,218
97,600
12,430,000
11,925,000
-
2006
-
142,329
115,436
$
275,562
2005
-
51,636
13,365,000
12,910,000
iI
2004
15,650,000
13,725,000
2002
2003
$
$
56,890,000
56,330,000
54,660,000
53,160,000
29,210,000
46,325,000
48,020,000
47,740,000
45,635,000
20,350,000
Bonds
Payable
Bonds
Year
Water &
Sewer System
Capital
Leases
Notes
Fiscal
General
103
$
-
-
-
250,000
490,000
715,000
930,000
1,135,000
1,325,000
1,505,000
Bonds
System
Sanitation
$
Obligation
Governmental Actities
RATIOS OF OUTSTANDING DEBT BY TYPE
-
-
-
-
-
-
-
-
-
-
Leases
Capital
$
Total
65,025,000
62,770,000
68,847,978
67,457,924
58,431,175
62,455,998
61,375,749
44,440,000
61,157,329
36,051,636
Government
Primary
Percentage
n/a
n/a
n/a
n/a
n/a
8.2%
8.8%
9.1%
6.9%
5.7%
Income
of Personal
$
1,960.06
1,902.35
2,152.10
2,103.52
1,843.55
1,977.12
2,051.44
1,462.76
2,002.47
1,193.25
Capita
Per
TABLEC-12
104
TABLEC-13
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
General Bonded Debt Outstanding
Less
Percentage of
General
Amount
Actual Taxable
Fiscal
Obligation
Available in Debt
Year
Bonds
Service Fund
2002
$
15,650,000
$
285,826
Total
$
Value of
Per
Property
Capita
15,364,174
1.57%
508.53
2003
13,725,000
320,497
13,404,503
1.27%
441.21
2004
13,365,000
300,581
13,064,419
1.18%
427.77
2005
12,910,000
88,053
12,821,947
1.11%
421.15
2006
12,430,000
116,987
12,313,013
1.04%
396.64
2007
11,925,000
144,063
11,780,937
0.95%
371.70
2008
11,405,000
164,304
11,240,696
0.87%
351.37
2009
10,865,000
180,516
10,684,484
0.79%
333.17
2010
10,365,000
234,210
10,130,790
0.76%
305.37
2011
9,610,000
234,210
9,375,790
0.69%
284.15
105
TABLE C-14
PLEDGED-REVENUE COVERAGE
Water Revenue Bonds
Utility
Less:
Net
Fiscal
Service
Available
Debt Service
Year
Charges
Operating
Expenses
Revenue
Principal
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
$
10,312,041
10,951,458
10,748,848
11,305,493
15,143,298
15,225,096
16,208,899
16,605,772
17,439,845
19,139,784
$
6,076,682
6,536,299
6,988,581
3,970,394
7,826,842
8,178,327
8,689,226
9,399,610
9,344,553
10,240,406
3>
4,235,359
4,415,159
3,760,267
7,335,099
7,316,456
7,046,769
7,519,673
7,206,162
8,095,292
8,899,378
106
$
1,800,000
7,470,000
3,180,000
2,135,000
2,250,000
1,580,000
2,220,000
2,890,000
5,935,000
3,180,000
Interest
$
823,126
842,025
1,067,901
3,451,364
1,833,683
2,068,692
1,726,389
2,029,720
1,933,061
1,858,402
Co yerage
$
$
$
$
$
$
$
$
$
$
1.61
0.53
0.89
1.31
1.79
1.93
1.91
1.46
1.03
1.77
TABLE C-15
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN CALENDAR YEARS
Per Capita
Population
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
30,213
30,381
30,541
30,445
31,043
31,695
31,991
32,069
33,175
32,996
Personal Income
$
631,205,140
645,936,266
675,598,934
712,869,864
752,010,015
776,242,245
846,385,887
,$
Personal
Median
School
Income
Age
Enrollment
20,780
24.4
20,963
21,615
22,720
23,228
24,491
26,457
24.4
24.4
24.5
24.5
23.8
23.8
n/a
n/a
23.8
n/a
n/a
23.8
n/a
n/a
30.3
Unemployment
6,313
6,385
6,365
6,575
6,485
6,544
6,222
6,222
6,487
6,487
Sources: Population, median age, and education level information provided by the State Department of Planning.
Personal income and unemployment data provided by the State Department of Commerce and Labor.
School enrollment data provided by the Nacogdoches Independent School District.
107
5.4%
5.8%
5.0%
0.1%
4.8%
4.5%
4.7%
6.0%
6.6%
8.8%
TABLEC-16
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
2011
Employer
Employees
Stephen F Austin State University
Pilgrim's Pride
1,578
1,470
2002
Percentage
of Total City
Employment
Rank
1
10%
2
9%
Employees
1,400
1,512
Percentage
of Total City
Employment
Rank
2
6%
1
21%
NISD
965
3
6%
845
3
6%
Nacogdoches County Hospital
Nacogdoches Medical Center
756
4
5%
575
6
5%
719
5
5%
588
5
Etech Inc.
500
6
3%
700
4
3%
City of Nacogdoches
Nacogdoches County
319
7
2%
309
10
2%
286
8
2%
289
11
NIBCO
263
9
2%
400
8
Wal-Mart
238
10
2%
435
7
Parker Hannifin Corp
Cooper Power Systems
210
11
1%
185
12
1%
262
12
Texas Farm Products
178
13
1%
335
9
R.R. Donnelley
Bright Coop
170
14
1%
n/a
165
15
1%
n/a
Total
8,002
51%
Source: City Economic Development Division
108
n/a
2%
n/a
3%
2%
7,650
50%
TABLE C-17
FULL-TIME-EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
Full-Time-Equivalent Employees as of Year End
Function
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Governmental Funds
General Government
Management Services
11
10
10
10
10
12
12
19
18
Finance
6
8
8
8
8
7
7
7
7
7
Planning
Building
3
3
3
3
3
3
3
3
2
2
6
6
6
6
6
7
7
7
7
7
Other
3
3
3
3
4
6
6
7
6
6
Officers
57
59
59
59
59
58
62
63
63
63
Civilians
20
20
20
22
22
22
24
17
17
17
50
54
58
59
59
59
59
59
59
59
2
2
2
2
2
2
2
2
2
2
17
Public Safety
Police
Fire
Firefighters and Officers
Civilians
Engineering
Other
Transit
6
6
7
7
6
6
6
6
5
5
29
28
26
26
23
23
22
22
22
21
-
-
-
-
-
-
-
-
-
-
Parks and Recreation
Library
Redevelopment
20
21
21
21
21
21
19
19
19
19
8
8
8
8
9
9
9
9
9
9
9
10
8
8
8
8
8
8
8
8
10
Enterprise Funds
Water and Sewer
Water Billings
10
11
11
11
11
11
11
11
10
Water Production
11
11
11
11
11
11
11
11
11
11
Distribution & Collections
11
12
12
12
12
12
13
13
13
13
Wastewater
15
17
17
17
17
17
17
17
17
17
27
19
21
21
21
21
21
21
21
21
304
308
311
314
312
315
319
321
316
314
Sanitation
Refuse Collection
Total
Source: City Budget Office
109
OPERATING INDICATORS BY FUNCTION
Fiscal Year
Function
2002
2003
2004
2005
2006
2007
General Government:
Planning and Zoning:
Building Permits Issued
Building Inspections Conducted
1,573
2,664
1,727
2,648
1,587
2,308
1,950
2,415
2,097
2,490
1,769
2,864
Physical Arrests
Parking Violations
1,174
1,476
1,453
1,578
2,058
962
823
618
244
259
Traffic Violations
9,650
9,474
8,723
7,343
9,643
7,918
1,745
1,856
1,765
1,979
2,439
3,036
184
196
193
238
241
196
na
2,770
3,414
2,574
3,213
3,271
na
na
371
325
372
386
Public Safety:
Police
1,835
na
Fire
Emergency Responses
Fires Extinguished
Recreation Program Participation
Recreation Facility Reservations
Library
Volumes in Collection
Total Volumes Borrowed
82,662
120,150
84,821
136,369
88,738
140,873
93,115
141,163
93,620
172,785
94,346
181,940
11,759
11,779
11,722
11,879
12,002
12,020
153
170
164
153
183
208
8,586
8,204
8,004
11,013
8,171
7,837
12,582
11,469
11,956
14,745
12,541
12,240
7,179
5,903
6,979
6,176
5,817
5,654
155,832
2,375
180,771
2,625
214,306
1,720
221,098
1,640
213,363
1,540
197,886
1,480
Water and Sewer:
Water
Water Customers
Water Main Breaks
Average Daily Consumption
(thousands of gallons)
Peak Daily Consumption
Wastewater
Average Daily Sewage Treatment
Sanitation:
Refuse Collection
Refuse Collected (cubic yds)
Recyclables Collected (cubic yds)
Source: Various City Departments
110
TABLEC-18
2008
2,081
3,682
2009
2010
2011
1,796
2,981
1,855
2,748
1,654
1,961
1,697
2,489
2,833
3,027
na
na
5
6
11,132
10,763
11,143
10,390
3,605
3,633
3,698
3,864
236
175
210
242
2,764
2,619
2,935
5,204
384
625
675
204
96,438
190,981
97,040
183,786
98,162
161,764
97,576
153,662
12,200
12,471
12,585
12,799
179
114
90
107
7,163
7,157
8,215
8,217
13,070
12,750
14,503
12,695
5,528
5,753
5,132
4,777
199,408
1,400
259,682
1,000
281,784
1,311
276,158
2,254
111
CAPITAL ASSET STATISTICS BY FUNCTION
Fiscal Year
Function
2002
2003
2004
2005
2006
2007
Public Safety:
Police
Stations
1
1
1
1
1
1
13
13
13
13
13
17
Stations
5
5
5
5
5
5
Fire Engines
8
8
8
8
8
8
143
143
143
143
145
146
5
4
4
4
4
4
17
Patrol Units
Fire
Highways and Streets:
Streets
Streets (miles)
Traffic Signals
Parks
17
17
17
17
17
Swimming Pools
1
1
1
1
1
1
Nature Trails
3
3
3
3
3
3
Tennis Courts
4
4
4
4
4
4
Water and Sewer:
Water
Water Wells
Water Main (miles)
8
8
8
8
8
8
319
320
320
320
321
323
274
275
275
276
281
282
13
13
13
13
13
13
Wastewater
Sanitary Sewers (miles)
Sanitation:
Refuse Collection
Collection Trucks
Source: Various City Departments
112
TABLE C-19
2008
2009
2010
2011
1
1
1
1
22
29
29
30
5
5
5
5
8
8
8
8
146
146
146
146
4
4
4
3
17
17
17
17
1
1
1
3
3
3
3
4
4
4
4
-
8
8
8
8
323
323
324
324
283
284
284
284
13
13
13
13
113
114
Compliance Section
115
116
A REGISTERED LIMITED LIABILITY PARTNERSHIP
io/-»rvxT t t '
«^t^
« •
a/^^t
,
,
r^
«,-~ , .
1329N. University Dr., Suite A3, Nacogdoches, Texas 75961
Michael Hails, cpa
T ^ J,ohnson ?*A
Terre McLemore, CPA
m Redfield. cpa
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
City Council
202 E. Pilar Street
We have audited the financial statements of the governmental activities, the business-type activities, each
major fund, and the aggregate remaining fund information of the City of Nacogdoches, Texas (the "City")
as of and for the year ended September 30, 2011, which collectively comprise the City's basic financial
statements and have issued our report thereon dated February 14, 2012. 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.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the City's internal control over financial reporting as
a basis for designing our auditing procedures 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 over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the
City's internal control over financial reporting.
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 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.
Our consideration of internal control over financial reporting 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
financial reporting that might be deficiencies, significant deficiencies or material weaknesses. We did not
identify any deficiencies in internal control over financial reporting that we consider to be material
weaknesses, as defined above.
117
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.
This report is intended solely for the information and use of management, others within the entity, the City
Council, and federal awarding agencies and pass-through entities and is not intended to be and should
not be used by anyone other than these specified parties.
February 14, 2012
118
Michael Hails, cpa
A REGISTERED LIMITED LIABILITY PARTNERSHIP
lo/^rwxT tt •
t^
o. •
a ~ *T
,
,
r«
«,-~ , -
1329 N. University Dr., Suite A3, Nacogdoches, Texas 75961
T Ga[y JIohnson 22
Terre McLemore, CPA
j.d. Redfield, cpa
Report on Compliance with Requirements Applicable
To each Major Program and on Internal Control over Compliance
In Accordance With OMB Circular A-133
City Council
202 E. Pilar Street
Compliance
We have audited the compliance of the City of Nacogdoches, Texas's (the "City") with the types of
compliance requirements described in the U. S. Office of Management and Budget (OMB) Circular A-133
Compliance Supplement that are applicable to each of its major federal programs for the year ended
September 30, 2011. The City's major federal programs are identified in the summary of auditor's results
section of the accompanying schedule of findings and questioned costs. Compliance with the
requirements of laws, regulations, contracts and grants applicable to each of its major federal programs is
the responsibility of the City's management. Our responsibility is to express an opinion on the City's
compliance based on our audit.
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 OMB Circular A-133, Audits of
States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133
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. We believe that our audit provides a reasonable basis for our opinion.
Our audit does not provide a legal determination of the City's compliance with those requirements.
In our opinion, the City complied, in all material respects, with the requirements referred to above that are
applicable to each of its major federal programs for the year ended September 30, 2011.
119
Internal Control over Compliance
Management of the City is responsible for establishing and maintaining effective internal control over
compliance with the requirements of laws, regulations, contracts and grants applicable to federal
programs. In planning and performing our audit, we considered the City's internal control over
compliance with the requirements that could have a direct and material effect on a major federal program
in order to determine our auditing procedures for the purpose of expressing our opinion on compliance
and to test and report on internal control over compliance in accordance with OMB Circular A-133, 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.
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 deficiencies, significant deficiencies or material weaknesses. We did not identify
any deficiencies in internal control over compliance that we consider to be material weaknesses, as
defined above.
This report is intended solely for the information and use of management, others within the entity, the City
Commissioners, and federal awarding agencies and pass-through entities and is not intended to be and
should not be used by anyone other than these specified parties.
Mm, yx**, 7ti±6m**t /eujMf&<6«r*+, llp
February 14, 2012
120
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
A. Summary of Auditor's Results
1.
Financial Statements
Type of auditor's report issued:
Unqualified
Internal control over financial reporting:
One or more material weaknesses identified?
One or more significant deficiencies identified that
are not considered to be material weaknesses?
Noncompliance material to financial
statements noted?
Yes
X
No
_
Yes
X
None Reported
_
Yes
X
No
_
Yes
X
No
Yes
X
None Reported
X
No
Federal Awards
Internal control over major programs:
One or more material weaknesses identified?
One or more significant deficiencies identified that
are not considered to be material weaknesses?
Type of auditor's report issued on compliance for
major programs:
Unqualified
Any audit findings disclosed that are required
to be reported in accordance with section 510(a)
of Circular A-133?
Yes
Identification of major programs:
CFDA Number(s)
Name of Federal Program or Cluster
66.468
Capitalization Grants for Drinking Water SRF 2006
Congressionally Recommended Awards - Byrne
16.753
Dollar threshold used to distinguish between
type A and type B programs:
$300.000
Auditee qualified as low-risk auditee?
X
B. Financial Statement Findings
NONE
C. Federal Award Findings and Questioned Costs
NONE
121
Yes
No
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
Management's Explanation
Finding/Recommendation
Current Status
NO PRIOR FINDINGS
122
If Not Implemented
CORRECTIVE ACTION PLAN
NOT APPLICABLE - NO CURRENT FINDINGS
123
EXHIBIT C-1
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Page 1 of 2
Federal Grantor/
CFDA
Pass-Through
Entity Identifying
Federal
Number
Number
Expenditures
Federal
Pass-Through Grantor/
Program Title
U.S. DEPARTMENT OF HOMELAND SECURITY
Passed Through Texas Dept of Public Safety:
2005 Citizen Corps *
2009 Citizen Corps *
2009 State Homeland Security Program
2010 State Homeland Security Program
Total Passed Through Texas Dept of Public Safety
Passed Through Texas Dept of Emergency Management:
Emergency Management Performance Grants
Total U.S. Department of Homeland Security
97.053
2005-GE-T5-4025
97.053
2009-SS-T9-0064
97.073
2009-SS-T9-0064
97.073
2010-SS-T0-0008
97.042
11-TX-EMPG-0438
$
441
1,648
1,280
1,188
4,557
60,478
65,035
U. S. ENVIRONMENTAL PROTECTION AGENCY
Passed Through Texas Water Development Board:
Capitalization Grants for Drinking Water SRF 2006
Total U. S. Environmental Protection Agency
66.468
2006
20.106
AM2011NACOG
1,680,000
1,680,000
U, S. DEPARTMENT OF TRANSPORTATION
Passed Through Texas Dept of Transportation:
Airport Improvement Program
Passed Through Texas Dept of Public Safety:
State and Community Highway Safety *
Total U. S. Department of Transportation
20.600
2011-Nac-S-1YG-0045
14,081
6,923
21,004
U, S, DEPARTMENT OF THE INTERIOR
Direct Program:
15.929
48-08-AP-4139
41,866
15.904
TX-11-028
7,963
49,829
16.580
2008-DD-BX-0520
97,609
Bulletproof Vest Partnership Program
16.607
2005-BUBX-05026215
ARRA-Public Safety Partnership
16.710
2010-UMWX-0315
100,418
2010 Byrne Memorial Justice Assistance Grant *
2011 Byrne Memorial Justice Assistance Grant *
16.738
2010-DJ-BX-0349
16.738
2011-DJ-BX-3299
11,004
2,550
16.753
2010-DD-BX-0544
327,775
543,589
16.727
80910
16.727
80014
7,589
1,346
8,935
552,524
ARRA-Save America's Treasures
Passed Through Texas Historical Commission:
Historic Preservation Fund Grant
Total U. S. Department of the Interior
U. S, DEPARTMENT OF JUSTICE
Passed Through Texas Dept of Justice:
Byrne Memorial Enforcement Assistance Grant
Congressionally Recommended Awards - Byrne
Total Passed Through Texas Dept of Justice
Passed Through Texas Alcohol & Beverage Commission:
2010 Enforcing Underage Drinking Laws Block Grant
2011 Enforcing Underage Drinking Laws Block Grant
Total Passed Through Texas Alcohol & Beverage Commission
Total U. S. Department of Justice
124
4,233
EXHIBIT C-1
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Page 2 of 2
Federal Grantor/
CFDA
Pass-Through
Entity Identifying
Federal
Number
Number
Expenditures
Federal
Pass-Through Grantor/
Program Title
U. S. DEPARTMENT OF HOUSING & URBAN DEVELOPMENT
Passed Through Texas Dept of Rural Affairs:
Community Dev Block Grant Ritchie Street *
Community Dev BlockGrant Disaster Recovery *
Total Passed Through Texas Dept of Rural Affairs
Passed Through Texas Dept of Housing &Community Affairs:
HOME Program
14.228
727331
14.228
DRS010123
14.239
M-06-SG480100
81.128
DE-EE0000893
$
$
159,436
103,238
262,674
4,886
267,560
Total U. S. Department of Housing & Urban Development
U. S. DEPARTMENT OF ENERGY
Passed Through Texas State Energy Conservation Office:
ARRA-Energy Efficiency and Conservation Block Grant
Total U. S. Department of Energy
TOTAL EXPENDITURES OF FEDERAL AWARDS
$
* Indicates clustered program under OMBCircular A-133 Compliance Supplement
The accompanying notes are an integral part of this schedule.
125
78,265
78,265
2,714,217
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Basis of Presentation
The accompanying schedule of expenditures of federal awards includes the federal grant activity of City of
Nacogdoches, Texas and is presented on the modified accrual basis of accounting. The information in this
schedule is presented in accordance with the requirements of OMB Circular A-133, Audits of States,
Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this
schedule may differ from amounts presented in, or used in the preparation of, the general purpose financial
statements.
Loan and Loan Guarantees
The accompanying schedule of expenditures of federalawards includes loanguarantees for the Capitalization
Grant for Drinking Water SRF 2006 totaling $1,680,000.
126

CITY OF NACOGDOCHES, TEXAS For the Year Ended

Transcription

Similar documents

Presentation - the Texas Department of Transportation FTP Server

North Village Market at a Glance

to a spec sheet for the property.

THE TEXAS HEAD START DIRECTORS` ROUNDTABLE

Wednesday, Dec. 12, 11 am to 1 pm Texins Activity Center

Village at Cedar Park

The Daily Sentinel

an Application

Riparian Flyer – Pedernales River on December 5, 2015