R2017-051 2017-03-27RESOLUTION NO. R2017-51
A Resolution of the City Council of the City of Pearland, Texas, accepting the
City's comprehensive annual financial report for fiscal year 2016 and the
accompanying independent audit as presented by the accounting firm of
Whitley Penn, LLP.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1. That certain comprehensive annual financial report for fiscal year 2016, a
copy of which is attached hereto as Exhibit "B" and made a part hereof for all purposes, is hereby
authorized and approved.
Section 2. That the City Council accepts the City's comprehensive annual financial report
for fiscal year 2016.
PASSED. APPROVED and ADOPTED this the 27"' day of March, A.D., 2017.
ATTEST:
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FING RME7
ETAR
APPROVED AS TO FORM:
D RRIN M. COKER
CITY ATTORNEY
1)rvii /
TOM REID
MAYOR
Resolution No. R2017-51
Exhibit "A"
CITY OF PEARLAND, TEXAS
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
Fiscal Year Ended
September 30, 2016
Officials Issuing Report
Clay Pearson Jon Branson Trent Epperson Cynthia Pearson Rick Overgaard
City Manager Deputy City Assistant City Finance Director Assistant
Manager Manager Director of
Finance
Resolution No. R2017-51
Exhibit "A"
CITY OF PEARLAND, TEXAS
V
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PEARLAN :D
l _.F E x A --.sr L
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
Fiscal Year Ended
September 30, 2016
Officials Issuing Report
Clay Pearson Jon Branson Trent Epperson Cynthia Pearson Rick Overgaard
City Manager Deputy City Assistant City Finance Director Assistant
Manager Manager Director of
Finance
CITY OF PEARLAND,TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS
Page
Introductory Section
Letter of Transmittal
Principal Officials xiii
Organizational Chart xiv
GFOA Certificate of Achievement xv
Financial Section
Report of Independent Auditors 1
Management's Discussion and Analysis 7
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position 19
Statement of Activities 20
Fund Financial Statements:
Balance Sheet-Governmental Funds 22
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of
Net Position 25
• Statement of Revenues,Expenditures, and Changes in Fund Balances-
Governmental Funds 26
Reconciliation of the Statement of Revenues,Expenditures, and Changes in Fund
Balances of Governmental Funds to the Statement of Activities 28
Statement of Net Position-Proprietary Funds 29
Statement of Revenues,Expenses and Changes in Fund Net Position-Proprietary
Funds 30
Statement of Cash Flows-Proprietary Funds 31
Notes to the Financial Statements 33
Required Supplementary Information:
General Fund- Schedule of Revenues,Expenditures, and Changes in Fund Balances-
Budget and Actual 74
Notes To Required Supplementary Budget Information 75
Required Pension System Supplementary Information 76
Required Other Post Retirement Benefit Supplementary Information 78
CITY OF PEARLAND,TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS(Continued)
Financial Section(Continued) Page
Other Supplementary Information:
Combining and Individual Fund Statements and Schedules
Combining Balance Sheet-Non-Major Governmental Funds 84
Combining Statement of Revenues,Expenditures,and Changes in Fund Balances-
Non-Major Governmental Funds 88
Schedules of Revenues,Expenditures, and Changes in Fund Balance-Budget
and Actual:
Debt Service Fund 92
Hotel/Motel Tax Fund 93
Court Security Fund 94
City-Wide Donations Fund 95
Court Technology Fund 96
Street Assessments 97
Park Donations Fund 98
Police Seizure Fund 99
Parks and Recreation Development Fund 100
Sidewalk Fund 101
Grant Fund 102
Traffic Impact Improvements 103
Juvenile Management Fund 104
Regional Detention Fund 105
Educational TV Fund 106
U of H Fund 107
Capital Projects Fund 108
Long-Term Debt Amortization Schedules:
Combining Schedule of Governmental Activity Long-Term Debt 110
Combining Schedule.of Enterprise Fund Long-Term Debt 118
CITY OF PEARLAND,TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS(Continued)
Statistical Section (Unaudited) Page
Net Position by Component 126
Changes in Net Position 128
Fund Balances of Governmental Funds 132
Changes in Fund Balances of Governmental Funds 134
Spending and Growth Analysis 136
Assessed Value and Estimated Actual Value of Taxable Property 138
Direct and Overlapping Property Tax Rates 140
Property Tax Levies and Collections 142
Principal Property Taxpayers 143
Taxable Sales by Category 144
Outstanding Debt by Type 146
Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt per Capita 148
Direct and Overlapping Governmental Activities Debt 149
Pledged Revenue Coverage 150
Demographic and Economic Statistics 151
Principal Employers 153
Full-time Equivalent City Government Employees by Function/Program 154
Operating Indicators by Function/Program 156
Capital Asset Statistics by Function/Program 160
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Introductory Section
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City of Pearland
_tty 3519 Liberty Drive
P EARL AN D Pearland, Texas 77581
C{ 5 Tel: 281.652.1600
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Sr s9
March 20, 2017
Honorable Mayor, Members
of City Council, and Citizens of the
City of Pearland, Texas USA
The Comprehensive Annual Financial Report (CAFR) of the City of Pearland, Texas (the "City")
for the fiscal year ending September 30, 2016, is hereby submitted as mandated by both local
and state statutes. These ordinances and statutes require that the City issue an annual report
on its financial position and activity and that an independent firm of certified public accountants
audit this report.
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.
Whitley Penn, LLP, Certified Public Accountants, have issued an unmodified (or"clean") opinion
on the City of Pearland's financial statements for the year ending September 30, 2016. The
independent auditor's report is located at the front of the financial section of this report.
Management's discussion and analysis (MD&A) immediately follows the independent auditor's
report and provides a narrative introduction, overview, and analysis of the basic financial
statements. MD&A complements this letter of transmittal and should be read in conjunction with
it.
PROFILE OF THE GOVERNMENT
The City of Pearland, incorporated in 1959, is located across the northern end of Brazoria
County and shares a common border with Houston, Texas to the north. The City also extends
into Fort Bend and Harris Counties. The City of Pearland, encompassing approximately 48
square miles, is the fastest growing city in Brazoria County, increasing from approximately
18,000 residents in 1990 to 114,000 residents estimated as of September 2016.
The ! ofPearlandisahomeruleCityoperatingunderaCounci!Managerformof .of
government.
Policy-making and legislative authority are vested in a governing council (Council) consisting of
the mayor and six other members. The Mayor and all Council members are elected at large.
The Mayor is allowed to vote only in case of a tie vote. The Mayor and each Council member
hold office for a period of three years and until his/her successor is elected and qualified.
Council members are limited to two full consecutive terms of office and there is no limitation on
-the office of Mayor. The City Manager is appointed by Council and is responsible for
implementation of Council policy, execution of the laws, and all day-to-day operations of the
City.
A full range of municipal services is provided by the City of Pearland including public safety
(police, fire, and emergency medical services); solid waste; water and wastewater utilities;
public improvements; repair and maintenance of infrastructure; recreational and community
activities; convention and visitor services; and general administrative services. In addition, the
City provides planning for future land use, traffic control, building codes, and health inspections,
and plans for new infrastructure and rehabilitation of infrastructure to meet the needs of the
citizens today, as well as tomorrow. The City is authorized to issue debt, subject to certain
limitations, for the purpose of financing its capital projects and the City is empowered to levy a
property tax on real property within its boundaries.
Activities of the general, debt service, water and sewer, solid waste, capital project funds, and
special revenue funds such as hotel/motel tax are included in the City's annual appropriated
budget. Capital project funds are budgeted for project length. The legal level of control for each
budget is at the fund level, which is to say that total expenditures for each fund should not
exceed total budgeted expenditures for that fund. The City Manager is authorized to transfer
budgeted amounts within and among departments. The City Council must approve any budget
amendment that increases appropriations by fund. The City amends the budget at the end of
each fiscal year to reflect current year projections for revenues and expenditures/expenses.
As an independent political subdivision of the State of Texas, the City is considered a primary
government. Pursuant to standards established by the Governmental Accounting Standards
Board (GASB), the City also reports for all funds for which the City, as the primary government,
is financially accountable. As such, this report includes financial activities of three component.
units as follows: The Pearland Economic Development Corporation was created by the City in
1995 under the Texas Development Corporation Act of 1979 to promote, assist, and enhance
economic and related development activities on behalf of the City. The Tax Increment
Reinvestment Zone (TIRZ #2) was created in 1998 for the purposes of development and
redevelopment in the Zone Area, better known as Shadow Creek Ranch. The City participates
in the Zone by contributing a portion of tax increments produced in the Zone to the Tax
Increment Fund. The Development Authority of Pearland was created in 2004 to provide
financing for the development of TRIZ #2. All these component units are considered blended
component units and have been included as major funds in the Governmental Funds.
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ECONOMIC CONDITIONS
Local Economy
Located 25 minutes away from downtown Houston, Texas, the nation's second largest seaport,
the world-renowned Texas Medical Center, and NASA-Johnson Space Center, Pearland is a
premier location for residential and commercial growth. With abundant land, business facilities,
a sound infrastructure, and a diverse workforce supported by educational programs, Pearland's
growth has been consistent and will continue to be sustained over time with continued
residential and commercial development.
The total of all new construction permitted during the 2016 calendar year was over$792 million,
an 84% increase in value from 2015, mainly due to two multi-family projects approved in
October 2016. New single-family housing permits totaled 1,206 with a construction value of
$261 million. Multi-family permits totaled 407 with a value of $57 million. Pearland's economy
continues to grow. During the final quarter of 2016 building permit revenues are up for
December 2016 over December 2015, from $456,464 to $939,935, a 105.9% increase.
Revenues, however, associated with development, including electrical, plumbing & gas, and
mechanical permits combined, decreased by $35,758, from $243,549 through December 2015
to $207,791 December 2016, a 14.7% decrease. The building plan check fee revenues
decreased by $112,161, from $396,883 to $284,722, a 28.3% decrease. Permits were issued
for 344 commercial projects with a combined total square footage of 3,263,741 square feet. The
total reported valuation of all commercial projects for 2016 is $287,388,510. In FY 2016, 1,221
single-family home permits were issued during the fiscal year. 1,457 single-family home permits
were issued for this same period last year. This is a 16.2 % decrease as compared to FY 2015.
The total valuation being reported for new single family residential was $298,913,454 as
compared to $328,358,299 in FY 2015. Average value of single-family home structure was
$244,810 in FY 2016 as compared to $225,366 in FY 2015. This is a decrease of$19,444 per
new home.
Sales of homes throughout the greater Houston area remained strong in 2016 despite the weak
job growth. The Houston Association of Realtors reported 76,449 single family home sales for
2016, up 3.0% from the 74,174 sales in 2015. The average price of a single family home rose
1.1% from $280,290 in 2015 to $283,133 in 2016. Indications are that the Houston area will
continue to have a healthy market with a balanced supply of housing inventory and strong
pricing — conditions that put Houston metro in an enviable position compared to other markets
around the country.
Houston is the world's energy capital, however the oil and gas industry contracted because of
the continued decrease in the price of oil in 2016, resulting in a significant reduction in oil and
gas exploration. Crude prices bottomed out in February 2016 at $26 a barrel, but have been
trending upward since, and currently at around $50 a barrel. Oil needs to get and stay above
$60 a barrel for growth to occur again. There are currently 665 rigs operating, but that is just
one third of the rig count in September 2014. The oil industry, however is optimistic for 2017
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with firms increasing their capital expenditures. The job growth forecast for 2017 is modest at
1.0%. In a healthy economy Houston averages 2.1% per year. Job growth is expected to be in a
variety of industries such as manufacturing, wholesale trade, retail trade, finance and insurance,
real estate, business, healthcare, and entertainment. Office leasing is down, but retail
construction is up. Houston sales tax collections have slipped 8.1%, and vehicle sales declined
as well. Hopefully, 2017 brings us better than expected growth.
Pearland's unemployment rate was 4.2% in September 2016, up from 3.3% in September 2015.
This is compared to the national unemployment rate of 4.8% and the State of Texas
unemployment rate of 5.0% as of September 2016. Pearland's unemployment is still less than
the national and state rates, but has increased from last year. Houston added 22,000 jobs in
2016 and the Greater Houston Partnership is forecasting 29,700 new jobs for 2017. Although
this is much lower than the past few years, the Houston economy is still growing. The Houston
area, and the State of Texas, is built on businesses, on jobs, and on economic opportunities.
Pearland is poised to take advantage of those opportunities.
Energy, healthcare and life sciences, and manufacturing have been key areas of interest for
Pearland for over ten years, Combined with a mix of reinforcing land uses, urban planning, key
entertainment and cultural attractions, public spaces, and walkability and connectivity will
provide for livable sustainable developments.
As noted later in the Economic Development section, PEDC and the City worked on several
major projects in 2016, including Lonza Houston and FloWorks.
Memorial Hermann opened a new 64-bed acute care hospital in March 2016. Memorial
Hermann Pearland sits on a 40 acre comprehensive medical campus that also includes a
Convenient Care Center, a 100,000 square-foot physicians' office building and a Memorial
Hermann Life Flight® helipad. The hospital will offer many of the high quality services already
offered by Memorial Hermann at their other campuses, including cardiac catheterization labs,
comprehensive radiology and laboratory services, women's and children's services and sports
medicine and rehabilitation. Memorial Hermann Pearland is expected to add approximately 350
jobs to the local economy.
In October 2016, Academy Sports opened its second Pearland store, 'a 62,000-square-foot
store on Pearland Parkway, just east of Broadway. The new store employs approximately 100
individuals.
In January 2016, Pearland Commons opened a 47,000 sf medical office building occupied by
Methodist Primary Care Group at Broadway and Cullen Blvd.
Sales tax for fiscal year 2016 totaled $29.6 million, an increase of $1.4 million or 5.0% over
fiscal year 2015. Of the $29.6 million, $19.7 million went to the City's General Fund for
operations and $9.9 million went to the City's Economic Development Corporation for specific
economic development programs and activities. The City's General Fund is 27% funded by
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sales tax, an elastic revenue stream that will fluctuate with the economy. As such, the City
closely monitors sales tax and the economy.
Pearland is a regional shopping destination and the economy has turned around since the
recession of 2010 and 2011, but has slowed in 2016. The City saw a resurgence of spending in
2012, which continued through 2015, then slowed in 2016. As such, the City projected an 4.0%
growth in sales tax for fiscal year 2017. Retail sales nationally is expected to be decent in 2017,
but at a slower pace than prior years because of a mixed economy.
Long-Term Financial Planning
The City adopts a one-year operating budget, including a five-year capital improvement program
(CIP). Even though a one-year budget is adopted, the budget implements strategies, both
financial and operational, to meet existing challenges and to plan for the future.
The City's Five-Year CIP for fiscal year 2017 through fiscal year 2021 totals $545 million and
continues to implement the $162 million bond program approved by the voters in May 2007.
Projects include drainage ($19M), streets ($169M), facilities ($22M), parks ($25M), water and
wastewater ($310M). Projects in the CIP have identified funding sources or potential funding
sources. Funding for these projects comes from the issuance of debt through Certificates of
Obligation, General Obligation Bonds, and Revenue Bonds, as well as impact fees, cash, and
contributions from the State, County, and other sources.
In order to fund obligations and implement the fiscal year CIP, the Debt Service tax rate will
need to increase by $0.0125 from the fiscal year 2017 tax rate of $0.4400 to $0.4525 in fiscal
year 2019. From fiscal year 2017 to fiscal year 2019, total revenues are anticipated to increase
7.6% to 7.8% per year.
The City completes a Water/Sewer Cost of Service Rate Study annually for the forecast. The
study is built around the Five-Year CIP, operating budget, and future needs. Due to funds on
hand for pay-as-you go capital improvements, no rate increase was taken for fiscal year 2011,
2012 or 2013, however, the model produced a rate increase for 2015, 2017 and anticipates
another for 2018. The City's utility system continues to be self-supporting and financially sound.
Relevant Financial Policies/Guidelines
Financial Policies guide the development and implementation of the budget and are a
framework for fiscal decision making and that ensure financial resources are available to meet
the current and future needs of the City. The policy statements address areas of reporting and
auditing, budgeting, revenues, capital improvements, debt, and grants to name a few. Some of
the most relevant policies are:
• Recurring revenues fund recurring expenditures/expenses.
• Non-recurring funds fund non-recurring expenditures/expenses.
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• General Fund Operating Reserves should be a minimum of two months of operations.
• Water and Wastewater Operating Reserves shall strive to be maintained at 25% of
operations.
• Budget revenues on a conservative basis.
• Fund existing services at current service levels.
• Enterprise Funds must be self-supporting.
• Leverage City dollars by seeking outside funding sources.
• Maintain stable property tax rates.
Major Initiatives
The City Council, staff, and community share a vision that combines progress and innovation
with prudent controls to shape Pearland's future, as it becomes one of the largest suburbs in the
Houston area. Some of the major initiatives are as follows:
Public Safety
Among numerous other reasons, families move to Pearland for a high degree of personal safety
and a low crime rate. According to the latest crime data available from the FBI, Pearland ranks
as the 18th safest out of 66 Texas cities with populations over 50,000 in the number of violent
crime per 1,000 residents. Out of the nine cities in the greater Houston area, Pearland ranked
the 4th safest. Pearland City Council continues to emphasize public safety, and the City delivers
services in the areas of law enforcement, emergency management, emergency medical
services, and fire protection.
The Pearland Police Department has focused attention on the strategic priority of Safe
Community. Several new programs were implemented throughout the fiscal year in order to
increase efficiency, work with the public to deter crime, build stronger community relationships
and catch violators. The Police Department assigned an officer to review all reports submitted
via the On-Line Reporting system. This review ensures that cases submitted with viable leads
are assigned and investigated in a timely manner. Additionally, this officer is assigned in a part-
time capacity supplementing the Lobby Officer Detail to expand availability of a Lobby Officer.
This expansion reduces wait times for citizens filing non-emergency reports. The positions have
also allowed for patrol officers to stay on the streets and permit a more professional and
welcoming service to those visiting the public safety building.
Community policing efforts have included a Teen Citizen Police Academy which hosted over 20
local students. This class is helping bridge the gap between the police and the public we serve.
Youth outreach has been expanded to include a Youth Leadership Academy and retooling of
the Law Enforcement Exploring Program. Youth efforts in 2017 will include a mentoring program
for at-risk youth and a safe community program for elementary students over the summer.
Pearland officers attend monthly "Coffee with a Cop" programs sponsored by private local
businesses and Community Outreach officers sponsor quarterly apartment manager meetings
and will begin a minister-involvement program entitled, "THRIVE.". The Integrated Response to
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Active Shooter Event program enables the police department to cross-train with the fire
department and better coordinate patient treatment and extraction while responding to active
shooter events.
Technological advances are helping the police department work more efficiently and document
investigations more effectively. In 2017 patrol officers are being equipped with WatchGuard
body-mounted cameras that capture citizen interaction from the police officer's perspective.
Additionally, the Criminal Investigations Division acquired a Faro 3-D scanner and imager to
map and reproduce crime scene and crash investigations with laser precision.
Fire Station 2, located at the northeast corner of Harkey Road and Fite Road, was completed in
June 2016. This station will be approximately 10,726 sq. ft. and house an operation crew, one
fire engine, and one ambulance.
Fire Station 1, currently located at the corner of Orange Street and Old Alvin Road, will relocate
in 2018 to provide quicker response times. The new station will be located on Old Alvin Road at
McHard. At approximately 9,500 sq. ft., the station will house a 24-hour operation crew, one fire
engine, and one ambulance.
Economic Development
The Pearland Economic Development Corporation (PEDC) is a non-profit Type B Corporation
under the Texas Development Corporation Act and is primarily funded by a half-cent sales tax in
the City of Pearland. PEDC is committed to enhancing the community's economic vitality
through the attraction, retention and expansion of primary employers. PEDC works to ensure
Pearland's business climate and built environment strongly support these efforts by focusing on
aesthetics, infrastructure, quality of life, image, workforce and quality development and
redevelopment of key Pearland districts and corridors.
PEDC works with the City to generally promote the City and to utilize various tools such as tax
abatement and the authority granted the City under Chapter 380 of the Local Government Code
to encourage new jobs and investment in the community. The following highlights a few of
PEDC's Fiscal Year 2016 attraction and retention projects.
Lonza Houston, one of the world's leading suppliers to the pharma & biotech and specialty
ingredient markets, began construction in April 2016 of a 100,000 square-foot biotech facility on
an 11-acre site in Pearland's Lower Kirby District. In September,2016, Lonza announced an
additional 150,000 square feet expansion to its facility currently under construction.. Lonza will
be home to over 100 employees at the facility and will bring an estimated $74 million in
investment to the community.
FloWorks International, a leading specialty supplier of pipe, valves, fittings and related products,
broke ground in late 2015 on a 225,000-square-foot facility, located on a 41-acre site northwest
of the Bailey Road and State Highway 35 intersection. Scheduled for completion in early 2017,
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the facility will be home to approximately 60 employees, including executive management,
sales, operations, administrative, accounting and warehouse personnel and will bring an
estimated $56 million in investment to the community.
PEDC continued to work with the State Highway 288 Management District (PMMD#2), created
in 2013, on corridor beautification. The beautification efforts are being done in coordination with
the State Highway 288 Managed Toll Lanes project currently under construction. The corridor
currently is non-landscaped and does not reflect City standards. The goal is to create a vibrant
visually appealing corridor that will attract investment in the City. The District levied a 10-cent
tax rate in 2013, which is anticipated to generate approximately $400,000 annually. The Board
approved a master plan for the District in 2014 and cleanup efforts have been ongoing since
that time. In 2016, PEDC and the City entered into a reimbursement agreement to cover the
cost of the aesthetic improvements. They City, PMMD#2 and Brazoria County entered into an
Interlocal Agreement to fund and construct the aesthetic hardscape enhancements as part of
the toll lane construction project.
PEDC, along with local partners in government, education, healthcare and business, continue to
work on implementation of the Pearland 20/20 community strategic plan. The long-term
strategic community and economic development plan that was created in 2012 incorporates
nine strategies to ensure a shared vision for the community's future growth and an action plan
to achieve it. The plan's steering committee completed a mid-course update to the plan in 2015
to get a big-picture sense of key successes and challenges. The nine strategies are 1.
Economic Development Marketing, 2. Mobility, 3. Corridors and Character Districts, 4.
Recreation and Culture, 5. Beautification and Gateways, 6. Lower Kirby District, 7. Multi-Use
Event Center, 8. Education and Workforce, and 9. Internal Marketing.
One of the City's prime areas for development, the Lower Kirby District, a 1,200 acre mixed-use
development located at Hwy 288 and Beltway 8, has infrastructure needs that make it more
difficult to develop. The PEDC is working with two area Municipal Management Districts,
developers, and the City on the development of regional detention, reconstruction of Hooper
Road, extension of North Spectrum, Kirby Drive entryway sign and corridor enhancements, and
the installation of underground electricity that will serve developable sites on Kirby Drive.
PEDC continues to promote Pearland and is working with a myriad of companies on future
relocations and site visits as well as working with existing businesses on future expansions.
Convention and Visitor's Bureau
The City's Convention and Visitor's Bureau (CVB), funded by hotel occupancy taxes, also
focuses on economic development through tourism and putting heads in beds. In late 2012, the
City Council authorized the creation of a city department for the Convention and Visitor's
Bureau, service that had been previously contracted out. In fiscal year 2013, an Executive
Director and staff was hired. The location of Pearland, as previously mentioned, makes
Pearland a perfect hub and spoke for visitors and "A Perfect Pick...to play, stay, meet, and
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getaway", the tag line for the CVB. The time has come for Pearland to complement and support
its development with cultural and lifestyle amenities to include a multi-use events center. This
need has been noted in multiple Pearland planning processes as an enhancement to make the
city more competitive for employers and residents. Annual hotel occupancy taxes total $1.5
million dollars and the funds ending balance is $4.2 million as of September 30, 2016.
Land Use Plan/Annexation
Land use planning seeks to order and regulate the use of land in an efficient and ethical way,
thus preventing land use conflicts. Land use planning is the systematic assessment of land,
alternatives for land use, and social and economic conditions in order to select and adopt the
best land use options. Its purpose is to select and put into practice those land uses that will best
meet the needs of the people while safeguarding resources and ensuring sustainability.
PEDC and the City of Pearland, in partnership with Gateway Planning, finalized a market-based
master plan and implementation strategy for the area formerly known as the Spectrum District,
and currently known as the Lower Kirby Mixed Use District, that leverages the area's unique
location (on Beltway 8 and 288) and creates a de facto "master development" context. The area
is planned to be a regional employment center with destination mixed use urban living, and
concentrated retail/entertainment areas.
Capital Improvement Projects and Planning
With continued residential and commercial growth, and to.plan for the future, the need to build
new infrastructure and maintain existing infrastructure is a priority and will be implemented
through an aggressive capital improvement program. The City's Five-Year CIP 2017-2021
totals $545 million. Projects include drainage ($19M), streets ($169M), facilities ($22M), parks
($25M), water and wastewater($310M).
Major thoroughfare projects include the widening of Bailey Road between FM1128 and
Veterans, reconstruction of one mile of Old Alvin Road from Plum Street to McHard Road,
McHard Road extension from Mykawa Road to Cullen Boulevard, expansion of Smith Ranch
Road from two lanes asphalt to four lanes concrete, curb and gutter from Hughes Ranch to
north of Broadway, the widening of Max Road between Broadway and Hughes Ranch Road,
and the extension of Fite between McLean and Veterans. Major drainage projects include storm
water regional detention in the southeast quadrant of the Old Townsite, the Linwood/Orange/Old
Alvin area, and the Corrigan Sub-Basin of Mary's Creek. Major park projects include
improvements to Independence and Centennial Parks, Phase I development of the Shadow
Creek Ranch Park, and a 7,000 square foot Nature Center.
Facility projects include a 7,900 square feet expansion and renovation to the Tom Reid Library,
relocation of Fire Station #1, and City Hall and Orange Street Service Center facility
improvements.
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Water projects include the preliminary design of a 10 million gallon per day(MGD) surface water
plant, which is phase I of an ultimate capacity of 20 MGD. Associated with the water plant
construction are multiple water transmission and distribution lines.
Major wastewater plant projects include expansion 4.0 MGD expansion of the Reflection Bay
plant, an approximate 2.0 MGD of the Barry Rose plant, and an approximate 2.0 MGD of the
JHEC plant. In addition, the program includes an extension of the trunk sewer on McHard, and
various lift station projects.
Transportation Improvements and Strategic Planning
Charged with planning, establishing, and maintaining an effective transportation system, the
City of Pearland is involved in numerous activities to face this challenge. The $84 million
transportation bond program (passed in 2007) will construct major projects mentioned
previously.
The City is also involved in regional efforts for long-range transportation planning and funding.
The Mayor is the Secretary for H-GAC's Transportation Policy Council (TPC), with the Deputy
City Manager serving as an alternate. The Assistant City Manager is the 1st Vice-Chair of the
Technical Advisory Committee (TAC), a sub-committee of the TPC, a member of the
Transportation Improvement Program (TIP) Subcommittee, and Chair of the Regional
Transportation Plan (RTP) Subcommittee.
The City submitted several proposed roadway projects from its Capital Improvement Program
for possible funding in the region's Transportation Improvement Program (TIP) for 2015- 2018
and five of the City's projects were selected for funding. The projects are Mykawa Road
(FM518 to Beltway), Hughes Ranch Road (Smith Ranch to Cullen Parkway), SH288
Northbound Frontage Road (CR59 to FM518), Clear Creek Trail (Hughes Road to University of
Houston Clear Lake, Pearland Campus) and Safe Routes to School (including Carleston
Elementary, Cockrell Elementary and Jr High South) These projects will receive State and
federal funding in the amount of 80% totaling $60,367,000 with the City providing 20% matching
funds. These project are scheduled for completion between 2018 and 2022. These projects are
in addition to the five projects selected in 2013 totaling $63,251,113 and the four projects that
received funding in 2011 totaling $20,180,901
With the growth in population along the Highway 288 corridor and the number of Pearland
residents that rely on Hwy 288 to commute to Houston and the Texas Medical Center, the City
along with Brazoria County have been meeting and working with the Texas Department of
Transportation to provide traffic relief on the corridor through managed toll lanes. Harris County
began construction this year on four new toll lanes on Texas 288 north of the Brazoria-Harris
County line to the Texas Medical Center. Brazoria County will follow with managed toll lanes
from the county line south to County Road 58. In addition, the County has secured TIP funds to
reconstruct the SH288 overpass at FM518, FM518 under SH288 and the associated frontage
road approaches to the intersection, which addresses the main congestion issues at our busiest
x
intersection. The TIP funds will provide 80% of the funds and the Texas Department of
Transportation (TxDOT) is providing the 20% matching funds. This project will be constructed in
conjunction with the toll lane project.
The Gulf Coast Center operates a transportation program known as Connect Transit. Connect
Transit provides "curb cab" service to Pearland. Services are shared ride services with pick-up
and delivery from curb to curb by reservation. The City funds approximately $20,000 for this
service annually to its citizens meeting the eligibility requirements; seniors, person with
disabilities, or low-income. This is a way to provide those needing transportation to grocery
stores, doctor visits, etc.
Fiscal Responsibility and Sustainability
Fiscal sustainability can be defined as "the extent to which patterns of Government spending do
not undermine the capability of the Government to continue to spend to achieve its public
purposes." City Council takes a proactive stance in ensuring the fiscal health and sustainability
of the City. Council adopted a set of Financial Management Policy Statements and receives
quarterly Finance "Snapshot" presentations, which includes economic indicators. The City also
prepares a Five-Year Forecast for the City's major funds to see how the spending decisions
made today affect the future as well as to identify any issues/concerns that are forthcoming and
to put strategies in place today to address those issues/concerns for the future.
Since fiscal year 2013 we have seen a turnaround in the economy and growth, however during
2016 the economy has slowed compared to prior years with mixed indicators. The moderate
growing Houston area economy and the City's increasing population played major roles in the
development of the fiscal year 2017 budget. The healthy local economy will most likely result in
continued growth in revenues in the current fiscal year, 2017, most noticeably in sales tax and
property tax, but perhaps at a slower pace. Through the first quarter, sales tax revenue for fiscal
year 2017 is up 1.4% over the prior year. The fiscal year 2017 Adopted Budget includes an
increase of 4.0% over fiscal year 2016. Property Tax revenue is projected to maintain the strong
levels that have developed during fiscal year 2016. The Adopted Budget for fiscal year 2017
projects an increase of 25.0% over last year's budget mainly due to increased valuations and
new property added to the roll. The Adopted Budget includes a 2.4100 cent decrease in the
property tax rate from $0.7053 to $0.6812 per $100 valuation. Of the total adopted tax rate of
68.12 cents per hundred dollars valuation, the operating tax rate increased to 24.12 cents per
hundred dollars and the debt service tax rate decreased from $0.4828 to $0.4400.
While about half-way into the 2017 fiscal year, the City is already beginning to prepare for the
2018 budget process and up-coming forecast with the same goal of being fiscally responsible to
our citizens.
AWARDS AND ACKNOWLEDGEMENTS
The Government Finance Officers Association of the United States and Canada (GFOA)
xi
•
awarded a Certificate of Achievement for the Excellence in Financial Reporting to the City of
Pearland, Texas, for its Comprehensive Annual Financial Report for the year ended September
30, 2015. This was the 39th consecutive year that the City has received this prestigious award.
In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily
readable and efficiently organized comprehensive annual financial report. This report must
satisfy both generally accepted principles and applicable legal requirements. A Certificate of
Achievement is valid for a period of one year only. City staff believe that our current
comprehensive annual financial report continues to meet the Certificate of Achievement
Program's requirements, and we are submitting it to GFOA to determine its eligibility for another
certificate.
The City has also received the GFOA's Distinguished Budget Presentation Award for its annual
budget document. In order to qualify for the Distinguished Budget Presentation Award, the
government's budget document had to be judged proficient as a policy document, a financial
plan, an operations guide, and a communications device.
The preparation of this report was accomplished with the dedicated service of the Accounting
staff of the Finance Department. We express our sincere appreciation to these individuals who
have continually demonstrated the core beliefs of the City and who assisted and contributed to
the preparation of this report. We also thank the Mayor and members of the City Council for
their support in planning and conducting the financial operations of the City in a responsible
manner.
Respectfully submitted,
.N)--LkAAb.4V\I
Clay J. lie son, CityManager Jon Branson, Deputy CityManager
9 p Y 9
xii
CITY OF PEARLAND, TEXAS
PRINCIPAL OFFICIALS
Term
Expires
Elected Officials Position May
Tom Reid Mayor 2017
Gary Moore Mayor Pro Tem 2017
Tony Carbone Council Member at Large-Position One 2019
Derrick Reed Council Member at Large Position Two 2018
Keith Ordeneaux Council Member at Large-Position Four 2018
Greg Hill Council Member at Large-Position Five 2019
Trent Perez Council Member at Large-Position Six 2019
Appointed Officials Position
Clay Pearson City Manager
Darrin Coker City Attorney
Letitia Farnie Municipal Court Judge
City Management Position
Jon Branson Deputy City Manager
Trent Epperson Assistant City Manager
Matt Buchanan Executive Manager of Development Services and
PEDC President
Cynthia Pearson Director of Finance
Young Lorfmg City Secretary
Eric Wilson Director of Public Works
Michelle Graham Director of Human Resources
Daniel McGhinnis Chief Information Officer
Chris Doyle Police Chief
Chris Orlea Director of Parks and Recreation
Vance Riley Fire Chief
Andrew Fearn Head Librarian
Lata Krishnarao Director of Community.Development
Kim Sinistore Executive Director,CVB
Sparkle Anderson Director of Communications
Jennifer Huhn Municipal Court Administrator
Robert Upton Director of Engineering and Capital Projects
xiii
of h rr�ae.
PEARi AN,.
fir ,itoH City Manager
City of Pearland, Texas
Organization Chart " DeputyStrategic Priorities
�,,,,�Manama ge ,,,,1 -_@�._�,-- •
j
Sustainable,Infrastructure
Parks& l Finance& • Fiscally Responsible Government
Recreation?' Purchasing • Healthy Local Economy
•
Engaged Community
City 3 HR/Organizatio:
Secretary nal • Safe Community
Development
I • Quality parks,recreation and events
Communications „ Convention,&,
j Visitor's Bureau
C'
Municipal. ,
Court
Executive: Chief'
Assistant City Manager .of Fire Police information
Manager Development i Officer
Services
1 PEnC Fire Aziimal a
I Public President Marsha! Services _, iii is
Engineering
Wprlcs � ---
... i_ Code`&Health
Pearland Community
- Projects a Water` Economic
Development Enforcement
�Perations Sewer Development
N Corporation i Planning
i
-- Engineering Traffic Facilities
Operations
_ Permits&
Right of _ Inspections
Way Organizational chart of departments and selected operation groups for illustrative purposes.
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
presented to
City of Pearland
Texas
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 2015
- 'foP
Executive Director/CEO
xv
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Financial Section
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REPORT OF INDEPENDENT AUDITORS
To the Honorable Mayor and Members of
the City Council
City of Pearland,Texas
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 City of Pearland, Texas (the
"City")as of and for the year ended September 30,2016, and the related notes to the financial statements,
which collectively comprise the City's basic financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements,whether due to fraud or error.
In making those risk assessments,the auditor considers internal control relevant to the entity's preparation
and fair presentation of the financial statements in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's
internal control. Accordingly, we express no such opinion. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management,as well as evaluating the overall presentation of the financial statements.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, each major fund,
and the aggregate remaining fund information of the City, as of September 30, 2016, and the respective
changes in financial position and, where applicable, cash flows thereof for the year then ended in
accordance with accounting principles generally accepted in the United States of America.
1
To the Honorable Mayor and Members of
the City Council
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis on pages 7 through 17, budgetary comparison information on pages 74 through
75, and pension system supplementary information and other post-employment benefit supplementary
information on page 76 through 78 be presented to supplement the basic financial statements. Such
information, although not a part of the basic financial statements, is required by the Governmental
Accounting Standards Board,who considers it to be an essential part of financial reporting for placing the
basic financial statements in an appropriate operational, economic, or historical context. We have applied
certain limited procedures to the required supplementary information in accordance with auditing
standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for
consistency with management's responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an opinion
or provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City's basic financial statements. The introductory section, combining and individual fund
statements and schedules, other supplementary information, budgetary comparison schedules and
statistical section are presented for purposes of additional analysis and are not a required part of the basic
fmancial statements.
The combining and individual fund statements and budgetary comparison schedules are the responsibility
of management and were derived from and relate directly to the underlying accounting and other records
used to prepare the basic financial statements. Such information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic financial statements or to the basic financial statements themselves, and
other additional procedures in accordance with auditing standards generally accepted in the United States
of America. In our opinion, the combining and individual fund statements and schedules, other
supplementary information, and budgetary comparison schedules are fairly stated, in all material respects,
in relation to the basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in the
audit of the basic fmancial statements and, accordingly, we do not express an opinion or provide any
assurance on them.
2
To the Honorable Mayor and Members of
the City Council
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March 17,
2017, on our consideration of the City's internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on internal control
over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering City's internal control over financial
reporting and compliance.
Houston,Texas
March 17,2017
3
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4
Management's Discussion and Analysis
5
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6
CITY OF PEARLAND, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
As management of the City of Pearland (the "City"), we offer readers of the City's financial statements this
narrative overview and analysis of the financial activities of the City for the fiscal year ended September 30,2016.
FINANCIAL HIGHLIGHTS
• The assets and deferred outflows of resources of the primary government of the City exceeded its
liabilities and deferred inflows as of September 30, 2016, by $720.9 million (net position). Of this
amount, $627.9 million is invested in capital assets,net of related capital debt and$76.5 million restricted
for capital improvements, debt service, community development projects, public safety, and economic
development.
• At the close of the current fiscal year, the City's governmental funds reported combined ending fund
balances of$115.3 million, an increase of$36.0 million in comparison with the prior year. Increases are
seen in the Capital Projects Fund of $25.0 million, Debt Service Fund of $3.2 million, and the
Development Authority of Pearland Corporation of $5.8 million. Approximately $94.4 million of the
$115.3 million is considered restricted and primarily consists of$32.8 million for economic development
and$47.4 million attributable to unspent bond proceeds for capital projects.
• As of September 30, 2016, the unassigned fund balance for the General Fund was $16.8 million or 24%
of total General Fund expenditures. The total fund balance for the General Fund is $20.9 million or 29%
of General Fund expenditures.
• The City's long-term liabilities increased by$107.3 million due to the issuance of new debt.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City's basic financial statements. The
City's basic financial statements are comprised of three components: (1) government-wide financial statements,
(2) fund financial statements 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 Position presents information on all of the City's assets, deferred outflows of resources,
liabilities, and deferred inflows of resources, with the difference between the four reported as net position. Over
time, increases or decreases in net position 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 position changed during the fiscal
year. All changes in net position are reported when 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 the future fiscal periods (e.g., uncollected taxes and earned but
unused compensated absences).
Both of the government-wide financial statements distinguish functions of the City that are principally supported
by taxes and intergovernmental revenues (governmental activities) from functions that are intended to recover all
or a significant portion of their costs through user fees and charges (business-type activities). The governmental
activities of the City include general government,public safety,public works, community services and parks and
recreation. The business-type activities of the City include water, sewer, and solid waste. The government-wide
financial statements can be found on pages 19 through 21 of this report. The government-wide fmancial
statements include not only the City, itself (known as the primary government), but also a legally separate
Economic Development Corporation, Tax Increment Reinvestment Zone (TIRZ #2) and the Development
Authority of Pearland for which the City is financially accountable. Financial information for these blended
component units is reported together with the financial information presented for the primary government,itself.
7
CITY OF PEARLAND, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS(continued)
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 funds of the City can be divided into two categories - governmental funds and proprietary
funds.
Governmental Funds - Governmental funds are used to account for essentially the same functions reported as
governmental activities in the government-wide financial statements. However, unlike the government-wide
financial statements, governmental fund financial statement focus on current sources and uses 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.
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 funds balance
sheet and the governmental fund statements of revenues, expenditures, and changes in fund balance provide a
reconciliation to facilitate this comparison between governmental funds and governmental activities.
Beginning on page 22 of this report, 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, Debt Service, Capital Projects, Tax Increment Reinvestment Zone #2, and Development Authority of
Pearland, which are considered to be major funds. Data from the non-major governmental funds are combined
into a single, aggregated presentation. Individual fund data for each of these non-major 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 the budget.
Proprietary Funds - The City maintains two types of proprietary funds. Enterprise Funds are used to report the
same functions presented as business-type activities in the government-wide financial statements. The City uses
an Enterprise Fund to account for its Water and Sewer Fund and Solid Waste Fund. Additionally, the City
maintains an Internal Service Fund to account for the financing of goods or services provided by one department
or agency to other departments or agencies of the City on a cost reimbursement basis. The Internal Service Fund
is included in governmental activities for government-wide reporting purposes.
Proprietary funds provide the same type of information as the government-wide financial statements, only in more
detail. The basic proprietary fund financial statements, which begin on page 29 of this report, provide separate
information for the Water and Sewer and Solid Waste Enterprise Funds since it is considered to be a major fund
of the City.The basic proprietary fund financial statements can be found on pages 29 through 32 of 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. The notes to the
financial statements can be found beginning on page 33 of this report.
Other Information - In addition to the basic financial statements and accompanying notes, this report also
presents other required supplementary information as well as combining and individual fund statements and
schedules that further support the information in the financial statements. This information is presented
immediately following the notes to the financial statements beginning on page 74 of this report.
8
CITY OF PEARLAND, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS(continued)
Government-wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In
the case of the City, assets and deferred outflows of resources exceeded liabilities by$720.9 million at the close
of the most recent fiscal year.
By far the largest portion of the City's net position (87%) reflects its investment in capital assets (e.g., land,
infrastructure, buildings, machinery, and equipment), less any related debt used to acquire those assets that is
still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are
not available for future spending. Although the City's investment in its capital assets is reported net of related debt,
it should be noted that the resources needed to repay this debt must be provided from other sources, since the
capital assets themselves cannot be used to liquidate these liabilities.
COMPARATIVE SCHEDULE OF NET POSITION
September 30, 2016 and 2015
Amounts in(000's)
Governmental Activities Business-type Activities Totals
2016 2015 2016 2015 2016 2015
Assets
Current and other assets $ 145,436 $ 109,894 $ 105,507 $ 44,298 $ 250,944 $ 154,192
Capital assets 807,488 784,493 307,444 300,625 1,114,932 1,085,118
Total Assets 952,924 894,387 412,951 344,923 1,365,875 1,239,310
Total Deferred Outflows
of Resources 21,674 16,962, 1,616 972 23,290 17,934
Liabilities
Other liabilities 13,529 14,264 8,997 10,244 22,526 24,508
Long-term liabilities outstanding 457,098 415,696 188,402 122,479 645,500 538,175
Total Liabilities 470,628 429,960 197,399 132,723 668,026 562,683
Total Deferred Inflows
of Resources 222 29 251
Net position
Net investment in capital assets 439,923 423,706 187,937 186,819 627,860 610,525
Restricted 60,640 53,883 15,852 13,538 76,492 67,421
Unrestricted 3,185 3,800 13,351 12,815 16,536 16,615
Total Net Position $ 503,748 $ 481,389 $ 217,140 $ 213,172 $ 720,888 $ 694,561
9
CITY OF PEARLAND, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS(continued)
COMPARATIVE SCHEDULE OF CHANGES IN NET POSITION
For the Years Ended September 30,2016 and 2015
Amounts in(000's)
Governmental Activities Business-type Activities Totals
2016 _ 2015 2016 2015 2016 2015
Revenues
Program revenues:
Charges for services $ 23,894 $ 23,464 $ 50,622 $ 36,837 $ 74,516 $ 60,301
Operating grants and
contributions 13,717 7,432 30 2,512 13,747 9,944
Capital grants and
contributions 24,636 36,440 4,094 13,177 28,730 49,617
Property taxes 67,644 62,974 67,644 62,974
Sales and use taxes 31,293 29,970 31,293 29,970
Franchise taxes 7,228 6,971 7,228 6,971
Investment earnings 729 491 294 325 1,023 816
Other 5,957 4,149 166 219 6,123 4,368
Total Revenues 175,099 171,891 55,206 53,070 230,305 224,961
Expenses
General Government 18,016 17,189 18,016 17,189
Public Safety• 38,933 33,179 38,933 33,179
Public Works 46,449 45,894 46,449 45,894
Community Services 3,711 3,641 3,711 3,641
Parks and Recreation 4,820 3,731 4,820 3,731
Economic Development 31,330 26,159 31,330 26,159
Interest on long-term debt 15,946 15,569 15,946 15,569
Water and Sewer 37,941 34,266 37,941 34,266
Solid Waste 6,833 6,417 6,833 6,417
Total Expenses 159,205 145,362 44,774 40,683 203,979 186,045
Increase(decrease)in net
position before special
item and transfers 15,895 26,529 10,432 12,387 26,327 38,916
Transfers 6,464 2,828 (6,464) (2,828)
Increase in net position 22,359 29,357 3,968 9,559 26,327 38,916
Net position-beginning 481,389 463,102 213,172 205,050 694,561 668,152
Prior period adjustment (11,070) (1,4371 (12,507)
Net position-ending $ 503,748 $ 481,389 $ 217,140 $ 213,172 $ 720,888 $ 694,561
The increase in Total Net Position from the prior year is $26.3 million, which is primarily attributable to capital
contributions from developers.
10
CITY OF PEARLAND, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS(continued)
Governmental activities - Governmental activities increased the City's net position by $22.4 million, thereby
accounting for 85%percent of the total increase in the net position of the City. Key elements of this increase are
as follows:
• Property taxes, sales and use taxes, and franchise taxes totaled $67.6 million, $31.3 million, and $7.2
million, respectively. These revenues increased by $6.3 million from prior year primarily as a result of
an increase in taxable assessed values and increased consumer spending.
• Capital contributions totaled$24.6 million as a result of infrastructure contributed by developers.
• The revenues were offset by expenses for general government, public safety, public works, and
economic development of$18.0 million, $38.9 million, $46.4 million, and$31.3 million,respectively.
Expenses and Program Revenues-Governmental Activities
$50,000 o Expenses
$45,000 EProgram Revenues
$40,000
$35,000 A
i
O $30,000 _�
o $25,000 °€
$20,000 ' '"
$15,000 1,..„:,
$10,000
% 0 re 7
$5,000
��,w ���� ohs �•�oos ��loo tfie, ��w
Cs°�� a,0~�05 a,0~~� c��t ¢o oyoN' 40 9
oS�� 4 4 s��a lob t1�oi�
4z" o bo Ito
�fiN
Revenues by Source -Governmental Activities
$80,000
$70,000
$60,000
$50,000
o .,
c $40,000
.55 $30,000
$20,000s.
$10,000
0.- Vail
•,,s, 4�10�% ��4 ���05 ��-i- t• D'o
% tc- �50 'ti5o e
t.�yS9 Got' eta �� Qto4
C
11
CITY OF PEARLAND,TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS(continued)
Business-type activities - Business-type activities increased the City's net position by $4.0 million, thereby
accounting for 15%percent of the total increase in the net position of the City. Key elements of this increase are
as follows:
• Charges for services of $50.6 million increased approximately $13.8 million over the prior year
primarily due to rate increases.
• Capital grants and contributions of$4.1 million decreased $9.1 million from the prior year mainly due
to a decrease in contributions from developers for impact fees.
• The revenues listed above were offset by expenses of$37.9 million and $6.8 million, respectively, for
Water and Sewer and Solid Waste. Expenses increased from prior year by$4.1 million.
Expenses and Program Revenues-Business-type Activities
$50,000
$45,000
$40,000
$35,000 ®Expenses _
^m $30,000 o Program Revenues _
c $25,000
a $20,000
$15,000
$10,000
$5,000 ..
$-
Water and Sewer Solid Waste
Revenues by Source - Business-type Activities
Grants and Other
contributions 1%
7%
Charges for
services
92%
12
CITY OF PEARLAND, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS(continued)
FINANCIAL ANALYSIS OF THE CITY'S FUNDS
As noted earlier, fund accounting is used to demonstrate and ensure compliance with finance-related legal
requirements.
Governmental Funds - The focus of the City's governmental funds is to provide information of near-term inflows,
outflows, and balances of spendable resources. Such information is useful in assessing the City's financing
requirements. In particular, unassigned fund balance may serve as a useful measure of the City's net resources
available for spending at the end of the fiscal year.
The City's governmental funds reflect a combined fund balance of$115.3 million. A portion of the combined fund
balance,or$16.8 million,is unassigned and available for day-to-day operations of the City;$47.4 million is restricted
for capital projects; $32.8 million for economic development and the remaining balance is restricted for debt service
and other programs.
There was an increase in the combined fund balance of$36.0 million from the prior year. The increase in fund
balance includes increases in the Capital Projects Fund of$25.0 million, Debt Service Fund of$3.2 million, and
the Development Authority of Pearland Corporation of $5.8 million. The General Fund's fund balance totaled
$20.9 million at year end.
The Pearland Economic Development Corporation, TIRZ #2, and Development Authority, the City's component
units blended with the primary government, had expenditures totaling $41.1 million, leaving an ending fund balance
of$20.0 million,$5.1 million,and$7.7 million,respectively,all considered restricted.
Proprietary Funds - The City's business-type activities contain two activities (water and sewer, and solid waste).
The City's proprietary funds provide the same type of information found in the government-wide financial
statements. Total net position in the Internal Service Fund was $2.4 million at year end, a$1.6 million increase from
the prior year.
GENERAL FUND BUDGETARY HIGHLIGHTS
During the year, there was a $3.8 million increase in appropriations between the original and final amended
budget. The increase in appropriations is attributable to carryover funding from prior-year encumbrances and
projects and to reflect projections during the 2015-2016 budget process.
Budget estimates for revenues and other sources combined increased by approximately $0.9 million for the year;
also to reflect carryovers and revised projections. Actual revenues of$67.2 million were $0.9 million over the final
budget mainly in sales and use taxes. Actual expenditures of$71.1 million were under budget by $4.5 million,
resulting in the year-end fund balance of$20.9 million over budget by$6.5 million.
At year-end, equipment purchases and several projects were still in progress and part of the $6.5 million will be
carried over and reappropriated in the 2016-2017 budget year.
13
CITY OF PEARLAND, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS(continued)
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets -At the end of fiscal year 2016, the City's governmental activities and business-type activities had
invested $807.5 million and $307.4 million,respectively,in a variety of capital assets and infrastructure,as reflected
in the following schedule. This represents a net increase of$23.0 million, or 2.9 percent over the end of last fiscal
year for the governmental activities and a net increase of$6.8 million or 2.3 percent over the end of last fiscal year for
business-type activities.
Governmental Activities Business-Type Activities Totals
2016 2015 2016 2015 2016 2015
Land $ 31,150 $ 31,150 $ 3,796 $ 3,796 $ 34,947 $ 34,946
Construction in progress 49,250 23,548 19,913 8,736 69,163 32,284
Infrastructure 638,752 638,690 233,662 236,699 872,414 875,389
Buildings and improvements 77,046 80,274 25,393 25,693 102,438 105,967
Machinery and equipment 8,360 8,034 1,575 1,206 9,935 9,240
Furniture and fixtures 2,929 2,797 20 29 2,949 2,826
Contractual water rights 23,086 24,466 23,086 24,466
Total Capital Assets $ 807,488 $ 784,493 $ 307,444 $ 300,625 $1,114,932 $1,085,118
Construction in progress at year-end represents numerous ongoing projects, the largest of which relate to street,
parks, and water/sewer projects. Additional information on the City's capital assets can be found in Note 4 to the
financial statements.
Long-Term Debt - At the end of the current fiscal year, the City had total bonds, certificates of obligation, and
capital leases outstanding of$611.9 million. Of this amount, $272.6 million is composed of general obligation
bonds, $50.1 million is composed of certificates of obligation and$264.9 million represents revenue bonds secured
solely by specified revenue sources.
Governmental Activities Business-Type Activities Totals
2016 2015 2016 2015 2016 2015
General obligation bonds 262,865 $ 245,864 $ 9,775 $ 11,305 $ 272,640 $ 257,169
Certificates of obligation 50,070 50,030 50,070 50,030
Revenue bonds 91,370 76,960 173,570 107,441 264,940 184,401
Unamortized amount for
issuance premium/(discount) 18,793 16,186 850 659 19,643 16,845
Capital leases payable 4,229 3,629 375 82 4,604 3,711
$ 427,327 $ 392,669 $ 184,570 $ 119,487 $ 611,898 $ 512,156
The City's general obligation bonds and certificates of obligation debt for governmental activities increased to
$312.9 million. The increase is due to new debt issued offset by scheduled principal payments. The City's debt for
business-type activities increased to $183.3 million, a net increase of$64.6 million from the previous year,which
was a result of new debt issued offset by scheduled principal payments.
14
CITY OF PEARLAND, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS(continued)
Current ratings on debt issues are as follows:
Moodys
Standard Investor
and Poor's Fitch Services
General obligation bonds AA AA Aa2
Revenue bonds AA- AA- Aa3
Both the Pearland Economic Development Corporation (PEDC) and the Development Authority of Pearland
(DAP), component units of the City, have issued debt. The PEDC bonds are.rated Al from Moody's. The DAP
bonds are rated A- by Standard and Poor's. Additional information on the City's long-term debt can be found in
Note 5 to the financial statements.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGET AND RATES
The City of Pearland continues with its forward momentum in FY 2017, less in terms of population and more in
terms of growing value. City operations have benefitted from new retail establishments and housing. Sales tax
revenue and property valuation continue to increase. Strategically, we have people in the right places within our
City organization. The City, however, is significantly leveraged, which was necessary to give us the opportunity
to grow successfully. As of September 30, 2016 the City had $312.9 million in General Obligation and
Certificates of Obligation outstanding being paid back primarily by property taxes. Our financial obligations will
continue to be met, and the City will continue to grow, but knowing that the heavy investments both past and
future may limit our resources for ongoing operations and innovations. Second is the challenge to maintain strong
property values on limited land resources. The property values derived from the City's growth have not been of
extremely high value relative to the land that has been developed compared to some other large suburban
communities. Despite these valuation concerns, the overall tax base reflects a strong 14.8% increase for FY 2017,
compared to an 11.4% increase for FY 2016, 8.5% in FY 2015, 7.1% in FY 2014, and 1.0%, 0.6%, and 2.6% in
fiscal years 2011,2012, and 2013,respectively.
With a mixed, but resilient Houston area economy and the continued growth in value and population, the City
General Fund revenues and other sources are projected to increase from $71,273,386 in FY 2016 to $74,249,777
in FY 2017, an increase of$2,976,391, or 4.2%, mainly due to an increase in Property Tax, Sales Tax and TIRZ
Administration Fees. General Fund current property taxes are expected to increase from a projected $14,292,773
in FY 2016 to $18,502,590 in FY 2017, an increase of$4,209,817 or 29.4% due to new development,revaluation
and an increase in the operating property tax rate of$0.00187, from $0.2225 to $0.2412. Other taxes, primarily
composed of sales taxes,are estimated to increase from a projected$19,746,556 in FY 2016 to$20,526,818 in FY
2017, an increase of $780,262, or 4.0%. The sales tax increase is the result of moderate growth in the local
economy, consumer confidence, and continued new development. Employment in the Houston MSA, however,
only grew .4%for the 12 months ending September 2016,adding 13,400 new jobs.
General Fund expenditures are anticipated to decrease from a projected $78,219,844 in FY 2016 to $76,454,035
in FY 2017,a decrease of$1,765,774 or 4.2%. The decrease is mainly due to spending$3.7 million in over policy
dollars in FY 2016 that is not planned for FY 2017. The decrease is offset primarily by an increase in employee
compensation and new positions added in fiscal year 2017. New positions added in FY 2017 include a Risk
Manager, four new Police Officers, and four FTE's in Community Services. The FY 2017 budget includes
funding for the ground breaking for a new relocated Fire Station 141, events for Super Bowl XLI, as well as
funding for improvements Park's. Pursuant to the Pearland 20/20 Strategic Plan, community beautification has
been enhanced with increased service levels for landscaping/median maintenance, and the contracting of new
medians.
15
CITY OF PEARLAND, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS(continued)
The General Fund meets reserve requirements;however,the fund is structurally imbalanced for FY 2017 whereby
operating expenditures are greater than revenues. By 2018, the General Fund is projected to be in balance. The
policy reserve requirement of 2 months recurring operating expenditures increases by 8.2% from$11.6 million in
fiscal year 2017 to $12.5 million by fiscal year 2019. In order to fund services and meet fund balance policy
requirements, the O&M tax rate will increase from $0.2412 in 2017 to $0.2682 by 2019, a $0.0270 increase,
though limited by truth-in-taxation laws.
REQUESTS FOR INFORMATION
The financial report is designed to provide our citizens, customers, investors and creditors with a general overview of
City's finances. If you have questions about this report or need any additional financial information, contact Cynthia
Pearson, Director of Finance, at 3519 Liberty Drive,Pearland, Texas 77581, or call (281) 652-1600. The report and
general information can be found on the City's website at www.pearlandtx.gov.
16
Basic Financial Statements
17
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18
CITY OF PEARLAND,TEXAS
STATEMENT OF NET POSITION
September 30,2016
Primary Government
Governmental Business-type
Activities Activities Total
Assets
Cash and equivalents $ 69,578,884 $ 5,382,498 $ 74,961,382
Investments 47,653,508 9,330,582 56,984,090
Receivables,net of allowance
for uncollectibles 28,098,165 4,372,355 32,470,520
Inventories 99,813 99,813
Prepaid items 5,980 5,980
Restricted cash and cash equivalents 79,889,044 79,889,044
Restricted investments 6,532,750 6,532,750
Capital assets:
Capital assets not subject
to depreciation 80,400,716 23,709,080 104,109,796
Capital assets,net of
accumulated depreciation 727,086,849 283,734,985 1,010,821,834
Total Capital Assets 807,487,565 307,444,065 1,114,931,630
Total Assets 952,923,915 412,951,294 1,365,875,209
Deferred Outflows of Resources
Deferred charge on refunding 12,402,389 412,028 12,814,417
Deferred outflows related to pension activities 9,271,247 1,203,880 10,475,127
Total Deferred Outflows of Resources 21,673,636 1,615,908 23,289,544
Liabilities
Accounts payable and accrued liabilities 9,121,909 4,908,072 14,029,981
Accrued interest 1,260,698 463,998 1,724,696
Unearned revenues 2,509,106 2,509,106
Customer deposits 637,704 3,624,493 4,262,197
Long-term liabilities:
Due within one year 21,914,689 10,296,691 32,211,380
Due in more than one year 414,349,664 175,400,369 589,750,033
Net pension liability 20,833,968 2,705,059 23,539,027
Total Liabilities 470,627,738 197,398,682 668,026,420
Deferred Inflows of Resources •
Deferred inflows related to pension activities 221,781 28,802 250,583
Total Deferred Inflows of Resources 221,781 28,802 250,583
Net Position
Net investment in capital assets 439,923,148 187,936,743 627,859,891
Restricted for:
Capital improvements 5,385,184 13,040,291 18,425,475
Debt service 15,406,622 2,811,650 18,218,272
Community development programs 5,588,939 5,588,939
Public safety 341,678 341,678
Economic development 33,917,375 33,917,375
Unrestricted 3,185,088 13,351,034 16,536,122
Total Net Position $ 503,748,034 $ 217,139,718 $ 720,887,752
See Notes to Financial Statements.
19
CITY OF PEARLAND,TEXAS
STATEMENT OF ACTIVITIES
For the Year Ended September 30,2016
Program Revenue
Charges for Operating Grants Capital Grants and
Functions/Programs Expenses Services and Contributions Contributions
Primary Government
Governmental Activities:
General Government $ 18,015,637 $ 8,546,854 $ 2,595,104 $
Public Safety 38,933,029 4,275,999
Public Works 46,449,114 320,484 11,122,372 24,636,364
Community Services 3,711,373 8,520,345
Parks and Recreation 4,820,333 2,218,438
Economic Development 31,329,634 12,000
Interest on long-term debt 15,946,200
Total Governmental Activities 159,205,320 23,894,120 13,717,476 24,636,364
Business-type activities:
Water and Sewer 37,940,516 43,676,626 29,970 4,094,086
Solid Waste 6,833,125 6,945,007
Total Business-Type Activities 44,773,641 50,621,633 29,970 4,094,086
Total Primary Government $ 203,978,961 $ 74,515,753 $ _ _ 13,747,446 $ 28,730,450
General Revenues:
Taxes:
Property taxes
Sales and use taxes
Franchise taxes
Unrestricted investment earnings
Miscellaneous
Transfers
Total General Revenues and Transfers
Change in net position
Net position-beginning
Net position-ending
See Notes to Financial Statements.
20
Net(Expense)Revenue and Changes in Net Position
Primary Government
Governmental Business-type
Activities Activities Total
$ (6,873,679) $ $ (6,873,679)
(34,657,030) (34,657,030)
(10,369,894) (10,369,894)
4,808,972 4,808,972
(2,601,895) (2,601,895)
(31,317,634) (31,317,634)
(15,946,2001 (15,946,200)
(96,957,360) (96,957,360)
9,860,166 9,860,166
111,882 111,882
9,972,048 9,972,048
(96,957,360) 9,972,048 (86,985,312)
67,643,978 67,643,978
31,293,414 31,293,414
7,228,365 7,228,365
729,043 293,436 1,022,479
5,957,365 165,945 6,123,310
6,464,020 (6,464,020)
119,316,185 (6,004,639) 113,311,546
22,358,825 3,967,409 26,326,234
481,389,209 213,172,309 694,561,518
$ 503,748,034 $ 217,139,718 $ 720,887,752
21
•
CITY OF PEARLAND,TEXAS
BALANCE SHEET
GOVERNMENTAL FUNDS
September 30,2016
Tax Increment
Capital Reinvestment
General Fund Debt Service Projects Zone#2
Assets
Cash and cash equivalents $ 7,866,134 $ 6,426,027 $28,404,484 $ 1,365,019
Investments 12,297,707 2,025,039 18,537,221 3,751,021
Receivables,net of allowance
for uncollectibles 6,126,102 10,171,505 6,610,238
Due from other funds 53,757
Inventories 99,813
Prepaid items 50,723
Total Assets $26,494,236 $ 18,622,571 $53,551,943 $ 5,116,040
Liabilities
Accounts payable $ 2,760,163 $ 277,677 $ 3,155,476 $ 9,419
Accrued expenditures 1,143,588 34,183 888,705
Deposits 599,371
Due to other funds
Unearned revenue 574,356 1,934,750
Total Liabilities 5,077,478 2,246,610 4,044,181 9,419
Deferred Inflows of Resources
Unavailable revenue 497,272 8,099,541 3,955,614
Total Deferred Inflows
of Resources 497,272 8,099,541 3,955,614
Fund Balances
Non-spendable
Inventories 99,813
Prepaid items 50,723
Restricted
Debt service 8,276,420
Capital improvements 45,552,148
Community development programs
Public safety
Economic development 5,106,621
Assigned 3,993,907
Unassigned 16,775,043
Total Fund Balances 20,919,486 8,276,420 45,552,148 5,106,621
Total Liabilities,Deferred
Inflows of Resources,
and Fund Balances $26,494,236 $ 18,622,571 $53,551,943 $ 5,116,040
See Notes to Financial Statements.
22
Development Non-major Total
Authority of Governmental Governmental
Pearland Funds Funds
$ 7,735,156 $ 14,984,814 $ 66,781,634
11,042,520 47,653,508
5,137,124 28,044,969
53,757
99,813
5,980 56,703
$ 7,735,156 $ 31,170,438 $ 142,690,384
$ $ 326,889 $ 6,529,624
111,366 2,177,842
78,156 677,527
53,757 53,757
2,509,106
570,168 11,947,856
2,859,140 15,411,567
2,859,140 15,411,567
99,813
50,723
8,276,420
1,808,402 47,360,550
5,588,939 5,588,939
341,678 341,678
7,735,156 20,002,111 32,843,888
3,993,907
16,775,043
7,735,156 27,741,130 115,330,961
$ 7,735,156 $ 31,170,438 $ 142,690,384
23
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24
CITY OF PEARLAND,TEXAS
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO
THE STATEMENT OF NET POSITION
September 30,2016
Total fund balance, governmental funds $ 115,330,961
Amounts reported for governmental activities in the Statement of Net Position are different
because:
Capital assets used in governmental activities are not financial resources and, therefore, are
not reported in the funds. 807,487,565
Deferred outflows represent a consumption of net position that applies to future periods and
therefore will not be recognized as an outflow of resources until then.
Deferred charge on refunding 12,402,389
Deferred outflows relating to pension activities 9,271,247
Other long-term assets (property taxes receivable and adjudicated court fines receivable) are
not available to pay current period expenditures and, therefore, are reported as unavailable
revenue in the funds. 15,411,567
Long-term liabilities, including bonds payable, are not due and payable in the current period,
therefore, are not reported in the funds.
Bonds and capital leases payable (427,327,356)
Compensated absences (6,182,870)
Accrued interest governmental activity debt (1,260,698)
Other post-employment benefit liability (2,754,127)
Net pension liability (20,833,968)
Deferred inflows represent a consumption of net position that applies to future periods and
therefore will not be recognized as an inflow of resources until then. (221,781)
Internal service funds are used by management to charge the cost of property insurance and
employee benefits to individual funds. The assets and liabilities of the internal service funds
are included in the governmental activities in the statement of net position. 2,425,105
Net Position of Governmental Activities in the Statement of Net Position $ 503,748,034
See Notes to Financial Statements.
25
CITY OF PEARLAND,TEXAS
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCES
GOVERNMENTAL FUNDS
For the Year Ended September 30,2016
Tax Increment
Capital Reinvestment
General Fund Debt Service Projects Zone#2
Revenues
Property taxes $14,607,848 $31,366,717 $ $ 21,594,727
Sales and use taxes 20,013,626
Franchise fees 6,919,239
Licenses and permits 5,677,439
Fines and forfeitures 2,802,425
Charges for services 14,853,316
Investment earnings 248,098 97,444 138,143 11,582
Intergovernmental 14,864,007
Other 2,118,327 1,168,556 429,211
Total Revenues 67,240,318 32,632,717 15,431,361 21,606,309
Expenditures
Current:
General government 10,099,131
Public safety 36,579,470
Public works 10,997,992 1,868,429
Community services 3,826,274
Parks and recreation 6,348,273
Economic development 8,522,253
Debt Service:
Principal 443,252 13,407,950
Interest and other charges 36,931 12,297,281 417,215
Capital outlay 2,799,304 27,977,895
Intergovernmental 4,847,104
Total Expenditures 71,130,627 30,552,335 30,263,539 8,522,253
Excess(deficiency)of revenues
over expenditures (3,890,309) 2,080,382 (14,832,178) 13,084,056
Other Financing Sources(Uses)
Certificates of obligation issued 13,995,000 •
Refunding bonds issued 27,080,000 16,405,000
Payments to refunded bond
escrow agent (28,967,231)
Premium on debt issued 2,245,323 2,305,693
Capital leases 1,917,854
Transfers in 4,111,521 804,331 8,126,298
Transfers out (2,573,817) (967,844) (12,926,181)
Total Other Financing Sources(Uses) 3,455,558 1,162,423 39,864,147 (12,926,181)
Net change in fund balances (434,751) 3,242,805 25,031,969 157,875
Fund balances-beginning 21,354,237 5,033,615 20,520,179 4,948,746
Fund balances-ending $20,919,486 $ 8,276,420 $45,552,148 $ 5,106,621
See Notes to Financial Statements.
26
Development Non-major Total
Authority of Governmental Governmental
Pearland Funds Funds
$ $ $ 67,569,292
11,279,788 31,293,414
• 309,126 7,228,365
5,677,439
128,736 2,931,161
459,996 15,313,312
1,311 231,062 727,640
1,094,987 15,958,994
1,349,291 5,065,385
1,311 14,852,986 151,765,002
13,272 1,496,767 11,609,170
238,281 36,817,751
425,353 13,291,774
467,567 4,293,841
109,863 6,458,136
19,575,000 2,953,681 31,050,934
5,165,000 720,000 19,736,202
2,314,201 775,148 15,840,776
1,204,888 31,982,087
4,847,104
27,067,473 8,391,548 175,927,775
(27,066,162) 6,461,438 (24,162,773)
13,995,000
66,030,000 14,640,000 124,155,000
(46,111,397) (14,559,773) (89,638,401)
4,551,016
1,917,854
12,926,181 93,913 26,062,244
(4,375,859) (20,843,701)
32,844,784 (4,201,719) 60,199,012
5,778,622 2,259,719 36,036,239
1,956,534 25,481,411 79,294,722
$ 7,735,156 $ 27,741,130 $ 115,330,961
27
CITY OF PEARLAND,TEXAS
RECONCILIATION OF THE STATEMENT OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE
STATEMENT OF ACTIVITIES
For the Year Ended September 30,2016
Net change in fund balances-total governmental funds: $ 36,036,239
Amounts reported for Governmental Activities in the Statement of Activities are different because:
Governmental funds report outlays for capital assets as expenditures.However,in the Statement of
Activities,the cost of these assets is allocated over their estimated useful lives as depreciation
expense.
This is the amount by which depreciation of$33,974,971 exceeded capital outlays of$32,332,896
in the current period. (1,642,075)
Governmental funds report only the proceeds from the disposal of capital assets and not the
difference between the carrying value and the accumulated depreciation of the asset.This is the
amount by which the carrying value exceeded the accumulated depreciation. (159)
Capital assets acquired as a result of in-City development. 24,636,364
Governmental funds do not present revenues that are not available to pay current obligations. In
contrast,such revenues are reported in the Statement of Activities when earned. (1,304,379)
Pension contributions made after the net pension liability date are reported as expenditures in the
governmental funds and are reported as deferred outflows on the face of the statement of net
position 4,603,419
Governmental funds report bond proceeds as current financial resources.In contrast,the Statement
of Activities treats such issuance of debt as a liability. Governmental funds report repayment of
bond principal as an expenditure,In contrast,the Statement of Activities treats such repayments as
a reduction in long-term liabilities.This is the amount by which proceeds exceeded repayments. (32,677,210)
Some expenses reported in the Statement of Activities do not require the use of current financial
resources and,therefore,are not reported as expenditures in governmental funds:
Accrued interest (71,197)
Deferred charge on refunding 613,605
Bond premiums/discounts (2,608,240)
Compensated absences (378,663)
Capital lease activity (600,335)
Other post-employment benefits liability (238,140)
Pension expense for the pension plan measurement year(governmental activities portion) (5,627,072)
The internal service funds are used by management to charge the costs of property insurance and
employee benefits to individual funds.The net revenue(expense)of certain activities of internal
service funds is reported with governmental activities.
with governmental activities. 1,616,668
Change in net position of governmental activities $ 22,358,825
See Notes to Financial Statements.
28
CITY OF PEARLAND,TEXAS
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
September 30,2016
Governmental
Business-type Activities-Enterprise Funds Activities-
Water and Sewer Solid Waste Internal
Fund Fund Total Service Fund
Assets
Current assets:
Cash and cash equivalents $ 4,709,430 $ 673,068 $ 5,382,498 $ 2,797,250
Investments 9,082,534 248,048 9,330,582
Accounts receivable,net of allowance for doubtful accounts 3,697,662 674,693 4,372,355 2,473
Prepaid items
Restricted cash and cash equivalents 79,889,044 79,889,044
Restricted investments 6,532,750 6,532,750
Total current assets 103,911,420 1,595,809 105,507,229 2,799,723
Non-current assets:
Capital assets:
Land and improvements 3,796,382 3,796,382
Construction in progress 19,912,698 19,912,698
Contractual rights to water supply 34,511,428 34,511,428
Infrastructure 344,431,070 344,431,070
Buildings 31,666,812 31,666,812
Machinery and equipment 4,951,614 4,951,614
Less Accumulated depreciation (131,825,939) (131,825,939)
Total non-current assets 307,444,065 307,444,065
Total Assets 411,355,485 1,595,809 412,951,294 2,799,723
Deferred Outflows of Resources
Deferred charge on refunding 412,028 412,028
Deferred outflows relating to pension activities 1,203,880 1,203,880
Total Deferred Outflows of Resources 1,615,908 1,615,908
Liabilities
Current liabilities:
Accounts payable and accrued expenses 3,720,569 1,187,503 4,908,072 374,618
Accrued interest payable 463,998 463,998
Customer deposits 3,624,493 3,624,493
Compensated absences-current portion 133,377 133,377
Bonds and permanent improvement payable-current portion 10,045,000 10,045,000
Capital lease-current portion 118,314 118,314
Total current liabilities 18,105,751 1,187,503 19,293,254 374,618
Non-current liabilities:
Compensated absences 495,736 495,736
Capital lease obligation 257,044 257,044
Other post-employment benefits 497,540 497,540
Net pension liability 2,705,059 2,705,059
Bonds and permanent improvement payable 174,150,049 174,150,049
Total non-current liabilities 178,105,428 178,105,428
Total Liabilities 196,211,179 1,187,503 197,398,682 374,618
Deferred Inflows of Resources
Deferred inflows relating to pension activities 28,802 28,802
Total Deferred Inflows of Resources 28,802 28,802
Net Position •
Net investment in capital assets 187,936,743 187,936,743
Restricted for debt service 2,811,650 2,811,650
Restricted for capital projects 13,040,291 13,040,291
Unrestricted 12,942,728 408,306 13,351,034 2,425,105
Total Net Position $ 216,731 412 $ 408,306 s$217,139,718 $ 2,425,105
See Notes to Financial Statements.
29
CITY OF PEARLAND,TEXAS
STATEMENT OF REVENUES,EXPENSES AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
For the Year Ended September 30,2016
Governmental
Business-type Activities-Enterprise Funds Activities-
Water and Sewer Solid Waste Internal Service
Fund Fund Total Fund
Revenues
Charges for services $ 43,676,626 $ 6,945,007 $ 50,621,633 $ 7,718,648
Total operating revenues 43,676,626 6,945,007 50,621,633 7,718,648
Operating Expenses
Personnel services 6,564,390 6,564,390
Supplies and materials 6,985,328 6,985,328
Contractual services 5,239,128 6,833,125 12,072,253 7,264,500
Repairs and maintenance 2,356,542 2,356,542
Other expenses 21,992 21,992 84,360
Depreciation and amortization 10,348,060 10,348,060
Total Operating Expenses 31,515,440 6,833,125 38,348,565 7,348,860
Operating income(loss) 12,161,186 111,882 12,273,068 369,788
Non-Operating Revenues(Expenses)
Earnings on investments 290,300 3,136 293,436 1,403
Miscellaneous revenue(expense) 165,775 170 165,945
Grants and contributions 29,970 29,970
Bond Issuance Costs (1,389,645) (1,389,645)
Interest expense (5,035,431) (5,035,431)
Total Non-Operating Revenues(Expenses) (5,939,031) 3,306 (5,935,725) 1,403
Income(loss)before contributions and transfers 6,222,155 115,188 6,337,343 371,191
Capital contributions 4,094,086 4,094,086
Transfers in 246,202 246,202 1,245,477
Transfers out (6,710,222) (6,710,222)
Change in net position 3,852,221 115,188 3,967,409 1,616,668
Total net position-beginning 212,879,191 293,118 213,172,309 808,437
Total net position-ending $ 216,731,412 $ 408,306 $217,139,718 $ 2,425,105
See Notes to Financial Statements.
30
CITY OF PEARLAND,TEXAS Page 1 of 2
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended September 30,2016
Governmental
Business-type Activities-Enterprise Funds Activities-
Water and Sewer Solid Waste Internal Service
Fund Fund Total Fund
Cash Flows from Operating Activities
Receipts from customers and users $ 44,090,664 $ 6,822,457 $ 50,913,121 $
Receipts from interfund charges for insurance activities 7,776,841
Disbursed for personnel services (6,387,413) (6,387,413)
Disbursed for goods and services (15,171,334) (7,384,527) (22,555,861) (7,385,052)
Net cash provided(used)by operating activities 22,531,917 (562,070) 21,969,847 391,789
Cash Flows from Noncapital Financing Activities
Transfers in 246,202 246,202 1,245,477
Transfers out (6,710,222) (6,710,222)
Cash received from non-operating revenues 195,745 170 195,915
Net cash provided by(used by)noncapital
financing activities (6,268,275) 170 (6,268,105) 1,245,477
•
Cash Flows from Capital and Related Financing Activities
Proceeds from the issuance of debt 70,394,646 70,394,646
Principal payments on debt (5,480,000) (5,480,000)
Principal payments on leases (130,115) (130,115)
Bond issuance costs (1,389,645) (1,389,645)
Interest paid (4,978,022) (4,978,022)
Acquisition and construction of capital assets (12,725,791) (12,725,791)
Net cash provided by capital and related
financing activities 45,691,073 45,691,073
Cash Flows from Investing Activities
Purchase of investments (1,040) (1,040)
Sale of investments 1,689,316 1,689,316
Interest received 290,300 3,136 293,436 1,402
Net cash provided by(used by)investing activities 1,979,616 2,096 1,981,712 1,402
Net increase(decrease)in cash and equivalents 63,934,331 (559,804) 63,374,527 1,638,668
Cash and equivalents,beginning 20,664,143 1,232,872 21,897,015 1,158,582
Cash and equivalents,end $ 84,598,474 $ 673,068 $ 85,271,542 $ 2,797,250
Unrestricted cash and equivalents $ 4,709,430 $ 673,068 $ 5,382,498 $ 2,797,250
Restricted cash and equivalents • 79,889,044 79,889,044
$ 84,598,474 $ 673,068 $ 85,271,542 $ 2,797,250
See Notes to Financial Statements.
31
CITY OF PEARLAND,TEXAS Page 2 of 2
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended September 30,2016
Governmental
Business-type Activities-Enterprise Funds Activities-
Water and Sewer Solid Waste Internal Service
Fund Fund Total Funds
Reconciliation of operating income to net cash
provided by operating activities
Operating income(loss) $ 12,161,186 $ 111,882 $ 12,273,068 $ 369,788
Adjustments to reconcile operating income to net cash
provided by operating activities:
Depreciation and amortization 10,348,060 10,348,060
(Increase)decrease in accounts receivable 153,951 (122,550) 31,401 58,193
(Increase)decrease in prepaid expenses 445,881 445,881
(Increase)decrease in deferred outflows relating to pension
activities (691,558) (691,558)
Increase(decrease)in accounts payable (1,014,225) (551,402) (1,565,627) (36,192)
Increase(decrease)in salaries payable 43,976 43,976
Increase(decrease)in customer deposits 260,087 260,087
Increase(decrease)in net pension liability 795,757 795,757
Increase(decrease)in deferred inflows relating to pension
activities 28,802 28,802
Net cash provided by(used by)operating activities $ 22,531,917 $ (562,070) $ 21,969,847 $ 391,789
Summary of non-cash transactions
Contributed capital assets $ 4,094,086 $ $ 4,094,086 $
See Notes to Financial Statements.
32
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS
Note 1 -Summary of Significant Accounting Policies
The City of Pearland, Texas (the "City") was incorporated in December 1959 and adopted a "Home Rule Charter"
February 6, 1971.The Charter,as amended,provides for a Council-Manager form of government and provides services
authorized by its charter. Presently, these services include police, fire and emergency medical, water and sewer
services, drainage, sanitation, building and code inspection, planning, zoning, engineering, street repair and
maintenance,park maintenance,recreational activities for citizens, and general administrative services. Fire protection
is provided through a combination full-time/volunteer part-time/volunteer department. The City is governed by an
elected mayor and five-member Council.In May 2014,the citizens voted to amend the City Charter to increase the size
of City Council from five councilmembers to seven councilmembers over a period of three years.
The Mayor and all members are elected at large. The Mayor is allowed to vote only in case of a tie vote. The Mayor
and each Council member hold office for a period of three years and until his/her successor is elected and qualified.
Council members shall be limited to two full consecutive terms of office and there is no limitation on the office of the
Mayor. The City Manager is appointed by Council and is responsible for implementation of Council policy, execution
of the laws,and all day-to-day operations of the City.
A. Financial Reporting Entity
The City is an independent political subdivision of the State of Texas governed by an elected council and a mayor
and is considered a primary government.As required by accounting principles generally accepted in the United States
of America, these financial statements have been prepared based on considerations regarding the potential for
inclusion of component units, which are other entities or organizations that are financially accountable to the City.
Blended component units are component units that are considered so closely related to the legal entity that the
blended component unit funds appear as funds that are integral parts of the primary government. The City's
financial statements include the following blended component units: the Pearland Economic Development
Corporation (PEDC); the Tax Increment Reinvestment Zone (TIRZ #2); and the Development Authority of
Pearland (DAP). No other entities have been included in the City's reporting entity. Additionally, as the City is
considered a primary government for financial reporting purposes, its activities are not considered a part of any other
governmental or other type of reporting entity.
Considerations regarding the potential for inclusion of other entities, organizations, or functions in the City's
financial reporting entity are based on criteria prescribed by generally accepted accounting principles. These same
criteria are evaluated in considering whether the City is a part of any other governmental or other type of reporting
entity. The overriding elements associated with prescribed criteria considered in determining that the City's financial
reporting entity status is that of a primary government are that it has a separately elected Governing body; it is
legally separate; and it is fiscally independent of other state and local governments. Additionally prescribed criteria
under generally accepted accounting principles include: considerations pertaining to organizations for which the
primary government is financially accountable; and considerations pertaining to other organizations for which the
nature and significance of their relationship with the primary government are such that exclusion would cause the
reporting entity's financial statements to be misleading or incomplete. The component units discussed below are
included in the City's reporting entity because of the significance of their operational or financial relationships with
the City.The component units do not issue separate financial statements.
33
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 1-Summary of Significant Accounting Policies (continued)
A. Financial Reporting Entity(continued)
Blended Component Units: •
Pearland Economic Development Corporation(PEDC)
In 1995, the citizens of Pearland established the Pearland Economic Development Corporation (PEDC) to help the
citizens and public officials of Pearland attract new businesses and to help existing businesses to expand. The
mechanism to fund the operations of the corporation is through a sales tax levy at a rate of one-half of one percent
(1/2%). The PEDC is fiscally dependent upon the primary government because, besides appointing the Board, the
City Council also must approve the PEDC's budget and any debt issuances.
Tax Increment Reinvestment Zone(TIRZ#2)
In 1998,the Tax Increment Reinvestment Zone(TIRZ#2)was established for a period of 30 years or until dissolved
by the City. The TIRZ#2 provides tax-assisted property development and/or redevelopment in specific geographic
areas in accordance with applicable state laws. Besides appointing Board members, the City Council must also
approve any debt issuances done on behalf of the TIRZ. A major land owner within the City sits on the Board of
Directors for the TIRZ#2.
Development Authority of Pearland
In 2004,the City created the Development Authority of Pearland to provide financing for the development of the TIRZ
#2. Proceeds from bond sales are to be used to reimburse developers and fund a debt service reserve. Besides
appointing Board members, the City Council must also approve any debt issuances done on behalf of the
Development Authority.
B. Government-wide and Fund Financial Statements •
The government-wide financial statements (i.e., the Statement of Net Position and the Statement of Changes in Net
Position) report information about the City as a whole. These statements include all activities of the primary
government and its component units. For the most part, the effect of interfund activity has been eliminated from the
government-wide statements. Exceptions to this general rule are charges between the City's business-type and
governmental funds. Elimination of these charges would distort the direct costs and program revenues reported for
the various functions concerned. Governmental activities, which normally are supported by taxes and
intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent
on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is
offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or
segment.Program revenues include 1)charges to customers or applicants who purchase,use or directly benefit from
goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are
restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other
items not properly included among program revenues are reported instead as general revenues.
34
CITY OF PEARLAND,TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 1-Summary of Significant Accounting Policies(continued)
C. Measurement Focus,Basis of Accounting and Financial Statement Presentation
The government-wide financial statements and all proprietary funds are reported using the economic resources
measurement focus and the accrual basis of accounting. Revenues are recognized when earned and expenses are
recorded when a liability is incurred,regardless of the timing of the related cash flows. With this measurement focus,
all assets and all liabilities associated with the operations of these activities are included on the statements of net
position.Proprietary fund-type operating statements present increases(i.e.,revenues) and decreases(i.e.,expenses)
in net total assets.Furniture and equipment capitalized in the Proprietary Fund Types are valued at cost.
The governmental fund fmancial statements are presented on a current financial resources measurement focus and
modified accrual basis of accounting. This is the manner in which these funds are normally budgeted. Revenues
are recognized as soon as they are both measurable and available. Measurable means that the amount of the
transaction can be determined and available means collectible within the current period or soon enough thereafter to
pay liabilities of the current period.For this purpose, the City considers revenues to be available if they are collected
within 60 days of the end of the current fiscal period. Revenues susceptible to accrual include property taxes, sales
and use taxes, franchise fees, charges for services and interest on temporary investments. Other receipts become
measurable and available when cash is received by the government and are recognized as revenue at that time.
Under modified accrual accounting, expenditures are recognized in the accounting period in which the liability is
incurred, if measurable, except for interest on general long-term debt, which is recognized when due. Since the
governmental fund statements are presented on a different measurement focus and basis of accounting than the
government-wide statements' governmental column, a reconciliation is presented which briefly explains the
adjustments necessary to reconcile fund-based financial statements with the governmental column of the
government-wide presentation.
In the fund fmancial statements, the accounts of the City are organized on the basis of funds, each of which is
considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-
balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses, as
appropriate.Following is a description of the various funds:
Governmental funds are those funds through which most governmental functions are typically financed.-The City
reports the following major governmental funds:
The General Fund is used to account for all financial transactions not properly includable in other funds. The
principal sources of revenues include local property taxes, sales and franchise taxes, licenses and permits, fines and
forfeitures, and charges for services. Expenditures include general government, administrative services,public works,
parks and recreation,community development,and public safety.
The Debt Service Fund is used to account for the payment of interest and principal on all general obligation bonds
and other governmental long-term debt of the City. The primary source of revenue for debt service is local property
taxes.The Debt Service Fund is considered a major fund for reporting purposes.
The.Capital Projects Fund is used to account for the expenditures of resources accumulated on a pay-as you go
basis and the sale of bonds and related interest earnings for capital improvement projects. The Capital Projects
Fund is considered a major fund for reporting purposes.
35
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 1-Summary of Significant Accounting Policies(continued)
C. Measurement Focus,Basis of Accounting and Financial Statement Presentation(continued)
The Tax Increment Reinvestment Zone #2 fund is used to account for the incremental property tax revenues in the
specific geographical area and use thereof from the participating taxing entities in the Zone. The Tax Increment
Re-investment Zone#2 is considered a major fund for reporting purposes.
The Development Authority of Pearland fund is used to account for the financing of the development of the TIRZ
#2.The Development Authority of Pearland is considered a major fund for reporting purposes.
The City's Business type activities consist of the following funds:
The Enterprise Funds are used to account for the operations that provide water and sewer utility services as well as
solid waste collection services to the public. The services 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 will be fmanced or recovered primarily through
user charges.
Additionally, the city maintains an Internal Service Fund used to account for the financing of goods or services
provided by one department or agency to other departments or agencies of the City on a cost-reimbursement
basis. Services provided by the Internal Service Fund include property and liability insurance coverage and
employee health benefits. The Internal Service Fund is included in governmental activities for government-wide
reporting purposes.
All assets, deferred outflows of resources, liabilities, equities, revenues, expenses and transfers relating to the
government's business activities are accounted for through proprietary funds. The measurement focus is on
determination of net income,financial position and cash flows.
As a general rule,the effect of interfund activity has been eliminated from the government-wide financial statements.
Exceptions to this general rule are charges between the City's water and sewer function and various other functions of
the government. Elimination of these charges would distort the direct costs and program revenue reported for the
various functions concerned.
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 revenue.
Likewise,general revenue includes 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 City's Enterprise Fund are
charges to customers for sales and services. Operating expenses for Enterprise Funds include the cost of sales and
services, administrative expenses, and depreciation on capital assets. All revenue and expenses not meeting this
definition are reported as nonoperating revenue and expense.
36
CITY OF PEARLAND,TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 1-Summary of Significant Accounting Policies(continued)
D. Fund Balance Working Capital Policies
Governmental Funds are presented in the financial statements as follows:
Nonspendable —Amounts that cannot be spent either because they are not in a spendable form or because
they are legally or contractually required to be maintained intact.
Restricted —Amounts that can be spent only for specific purposes because of the City Charter, City Code,
State or Federal laws, or externally imposed conditions by grantors or creditors.
Committed—Amounts than can be used only for specific purposes determined by ordinances passed by City
Council, the City's highest level of decision making authority. Commitments may be modified or rescinded
only through ordinances approved by City Council.
Assigned —Amounts that are intended to be used for a specific purposes, but do not meet the definition of
restricted or committed fund balance. Under the City's policy, amounts can be assigned by the City's
Director of Finance.
Unassigned—Amounts that are available for any purpose. Positive amounts are reported only in the General
Fund.
City Council has authorized the Director of Finance as the official authorized to assign fund balance to a specific
purpose. City Council has established fund balance and working capital policies under which the City shall
maintain the fund balance and working capital of the various operating funds at the following levels:
General Fund Unassigned Fund Balance
The City shall maintain the General Fund unassigned fund balance equivalent to 2 months of recurring
operating expenditures,based on current year expenditures. If the fund balance exceeds this amount, funding
non-recurring expenditures in the following fiscal year may be used to draw down the balance.
Water/Sewer Unreserved Working Capital
The City shall maintain a working capital sufficient to provide for reserves for emergencies and revenue
shortfalls. A cash equivalent operating reserve will be established and maintained at 25% of the current
year's budget appropriation for recurring operating expenses.
The cash operating reserve is derived by dividing the total cash equivalents balance by recurring operating
expenses.
Use of Fund Balance/Working Capital
Fund balance/Working Capital shall only be used for emergencies, non-recurring expenditures/expenses or
major capital purchases that cannot be accommodated through current year savings. Should such use reduce
balances below the level established as the objective for that fund, restoration recommendations will
accompany the request/decision to utilize said balances.
Debt Service Fund Total Fund Balance
The City shall maintain the debt service fund balance at 10% of annual debt service requirements OR a fund
balance reserve as required by bond ordinances,whichever is greater.
37
CITY OF PEARLAND,TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 1-Summary of Significant Accounting Policies(continued)
D. Fund Balance Working Capital Policies(continued)
Internal Service Fund Unrestricted Net Position
The Internal Service Fund accounts for uninsured and deductible claims for the City's property and liability
insurance. Claims cannot be reasonably predicted and budgeted for; therefore the fund will maintain a
balance that approximates the prior average annual expense for the last three years, excluding extra-ordinary
expenses in the fund.
The Internal Service Fund is funded through City and employee contributions. Estimated costs shall be
determined during each budget year and the contributions adjusted accordingly. There is no minimum
balance for this fund as it relates to employee benefits.
Economic Development Corporation
As sales tax revenue fluctuates due to changes in economic conditions, the PEDC shall maintain a fund
balance of no less than 10%of budgeted sales tax revenues.
Water/Sewer Revenue Debt Coverage Reserves
Revenues shall be maintained at 1.15 times coverage in a fiscal year where the water/sewer fund is not issuing
additional debt and 1.4 times coverage in a year where debt is anticipated to be issued.
Bond Issuance Reserves
Debt service reserves should be maintained for each bond issue as required by bond covenants.
Contingency Fund
Pursuant to the City Charter, a provision shall be made within the annual budget for a contingency fund in an
amount not more than seven percent of the total budget(General Fund) to be used in case of unforeseen items
of expenditure.
E. Cash and Cash Equivalents
The City's cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term
investments with original maturities of three months or less from the date of acquisition. For the purpose of the
statement of cash flows, the Proprietary Fund Types consider temporary investments with maturity of three months
or less when purchased to be cash equivalents.
The City pools cash resources of its various funds to facilitate the management of cash. Cash applicable to a particular
fund is readily identifiable. The balance in the pooled cash accounts is available to meet current operating
requirements. Cash in excess of current requirements is invested in various interest-bearing accounts and securities
and disclosed as part of the City's investments.
The City pools excess cash of the various individual funds to purchase these investments. These pooled investments
are reported in the combined balance sheet as Investments in each fund based on each fund's share of the pooled
investments. Interest income is allocated to each respective individual fund, monthly,based on their respective share
of investments in the pooled investments.
38
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 1-Summary of Significant Accounting Policies(continued)
F. Investments
Investments consist of Local Government Investment Pools, United States (U.S.) Government Agency securities,
and Certificates of Deposit with original maturities greater than three months from the date of acquisition. The
City reports all investments at fair value, except for investment pools. The City's investment pools are valued and
reported at amortized cost,which approximates fair value.
The City categorizes fair value measurements of its investments based on the hierarchy established by generally
accepted accounting principles.The fair value hierarchy,which has three levels,is based on the valuation inputs used to
measure an asset's fair value: Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are
significant other observable inputs; Level 3 inputs are significant unobservable inputs. The City's local government
investment pools are recorded at amortized costs as permitted by GASB Statement No. 79, Certain Investment Pools
and Pool Participants.
G. Receivables
All receivables are reported at their gross value, and where appropriate, are reduced by the estimated portion that is
expected to be uncollectible. Trade accounts receivable in excess of 120 days comprise the trade accounts receivable
allowance for uncollectibles.
H. Due to and Due from Other Funds
Interfund receivables and payables arise from interfund transactions and are recorded by all funds affected in the
period in which the transactions are executed. These receivables and payables are classified as"due from other funds"
or "due to other funds". Interfund receivables and payables which are not expected to be paid within 12 months are
classified as loans from/loans to other funds.
I. Inventories and Prepaid Items
Inventory, which consists of fuel and auto parts for use in the City's vehicles, is stated at cost (first-in, first-out
method). Expenditures are recognized as the fuel and auto parts are consumed rather when purchased. Certain
payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in
both the government-wide and fund financial statements. The cost of prepaid items is recorded as
expenditures/expenses when consumed rather than when purchased.
J. Restricted Assets
Certain proceeds of the Water and Sewer Enterprise Fund revenue bonds and certain resources set aside for their
repayment are classified as restricted assets on the balance sheet because their use is limited by applicable bond
covenants. Certain resources are also set aside for repayment of Pearland Economic Development Corporation Bonds
and are reported as restricted assets.
39
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 1 -Summary of Significant Accounting Policies(continued)
K. Capital Assets
Capital assets which include property, plant, equipment and infrastructure, are reported in the applicable
governmental or business-type activities columns in the government-wide financial statements. The City defines
capital assets as assets with an initial, individual cost of more than $5,000 and an estimated useful life of three
years or more. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed.
Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal
maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are not capitalized.
Property,plant,and equipment are depreciated using the straight-line method over the following useful lives:
Asset Years
Buildings and improvements 10-45
Machinery and equipment 3-15
Infrastructure 10-50
Intangible Assets-Water Rights 25
L. Compensated Absences
It is the City's policy to permit employees to accumulate earned but unused vacation,sick and holiday pay benefits.
Employees hired prior to October 1, 2005, earn vacation leave at the rate of 15 days per year from 1 to 15 years of
service, 20 days per year for service of 16 to 19 years, and 25 days per year for service of 20 years or more.
Employees,who are not classified and are hired after October 1,2005,earn vacation at a rate of 10 days per year from
1-6 years of service, 15 days per year for 7-15 years of service and 20 days for 16 and over years of service.Effective
October 1, 2005, employees are no longer able to carry over unused vacation from one year to the next with the
exception of police department personnel in classified positions. Certified police and firefighter personnel earn 15
days of vacation after 1 year and 20 days of vacation after 16 years. Employees are required.to use their vacation in,
the year it is earned. Employees who are unable to use their vacation due to departmental scheduling or staffing
problems may, with the City Manager's approval, receive compensation for half of the remaining balance up to a
maximum of forty(40)hours.
City employees receive 12 paid holidays per year. Employees required to work on a City-observed holiday may be
paid or may elect to receive compensatory time off for the holiday. Overtime is earned at one and one-half times the
regular rate of pay for non-exempt employees. Employees may be paid or receive compensatory time.The maximum
accrual for overtime is 120 hours,including employees involved in public safety.
All sick leave benefits are accumulated and paid to employees upon separation from the City not to exceed 720 hours
for employees hired prior to July 24, 2006, and 360 hours for employees hired after. Vacation, sick and holiday pay
benefits are accrued when incurred in the government-wide and proprietary fund financial statements. A liability for
these amounts is reported in governmental funds only if they have matured, for example, as a result of employee
resignations and retirements.
•
M. Estimates
The preparation of financial statements, in conformity with generally accepted accounting principles, requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of financial statements and the reported amounts of revenues
and expenditures during the reporting period.Actual results could differ from those estimates.
40
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 1-Summary of Significant Accounting Policies(continued)
N.Comparative Data and Reclassifications
Comparative data for the prior year have been presented in certain sections of the accompanying fmancial
statements in order to provide an understanding of changes in the City's financial position and operations. Also,
certain amounts presented in the prior year data have been reclassified in order to be consistent with current year's
presentation.
O.Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for deferred
outflows of resources. This separate financial statement element, deferred outflows of resources, represents a
consumption of net position or fund balance that applies to a future period(s) and thus, will not be recognized as
an outflow of resources(expense/expenditure)until then. The City has only two items that qualify for reporting in
this category.
• Deferred outflows of resources for refunding - Reported in the government-wide statement of net
position, this deferred charge on refunding results from the difference in the carrying value of refunded
debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the
refunded or refunding debt.
• Deferred outflows of resources for pension—Reported in the government wide financial statement of net
position, this deferred outflow results from pension plan contributions made after the measurement date
of the net pension liability and the results of 1) differences between projected and actual earnings on
pension plan investments; 2) changes in actuarial assumptions; 3) differences between expected and
actual actuarial experiences and 4) changes in the City's proportional share of pension liabilities. The
deferred outflows of resources related to pensions resulting from City contributions subsequent to the
measurement date will be recognized as a reduction of the net pension liability in the next fiscal year. The
deferred outflows resulting from differences between projected and actual earnings on pension plan
investments will be amortized over a closed five year period. The remaining pension related deferred
outflows will be amortized over the expected remaining service lives of all employees(active and inactive
employees)that are provided with pensions through the pension plan.
In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred
inflows of resources. This separate financial statement element, deferred inflows of resources, represents an
acquisition of net position or fund balance that applies to a future period(s) and so will not be recognized as an
inflow of resources (revenue) until that time. The City has only two items that qualify for reporting in this
category.
• Deferred inflows of resources for unavailable revenues-Reported only in the governmental funds balance
sheet, unavailable revenues arise under the modified accrual basis of accounting. These amounts are
deferred and recognized as an inflow of resources in the period that the amounts become available.
• Deferred inflows of resources for pension—Reported in the government wide financial statement of net
position, these deferred inflows result primarily from changes in actuarial assumptions; These pension
related deferred inflows will be amortized over the expected remaining service lives of all employees
(active and inactive employees)that are provided with pensions through the pension plan.
41
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 1 -Summary of Significant Accounting Policies(continued)
P.Pensions
For purposes of measuring the net pension liability, pension related deferred outflows and inflows of resources,
and pension expense, City specific information about its Fiduciary Net Position in the Texas Municipal
Retirement System (TMRS) and additions to/deductions from the City's Fiduciary Net Position have been
determined on the same basis as they are reported by TMRS. For this purpose, plan contributions are recognized
in the period that compensation is reported for the employee,which is when contributions are legally due.Benefit
payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are
reported at fair value. Information regarding the City's Total Pension Liability is obtained from TMRS through a
report prepared for the City by TMRS consulting actuary, Gabriel Roeder Smith& Company, in compliance with
Governmental Accounting Standards Board (GASB) Statement No. 68,Accounting and Financial Reporting for
Pensions, as superseded by GASB Statement No. 71.
Q.New Accounting Standards
In the current fiscal year,the City implemented the following new standards:
• GASB Statement No. 72, Fair Value Measurement and Application, addresses accounting and financial
reporting issues related to fair value measurements. The definition of fair value is the price that would be
received to sell an asset or paid to transfer a liability in an orderly transaction between market participants
at the measurement date. This Statement provides guidance for determining a fair value measurement for
financial reporting purposes. This Statement also provides guidance for applying fair value to certain
investments and disclosures related to all fair value measurements.
• GASB Statement No. 79, Certain External Investment Pools and Pool Participants, addresses accounting
and financial reporting for certain external investment pools and pool participants. Specifically, it
establishes criteria for an external investment pool to qualify for making the election to measure all of its
investments at amortized cost for financial reporting purposes. This Statement establishes additional note
disclosure requirements for qualifying external investment pools that measure all of their investments at
amortized cost for financial reporting purposes and for governments that participate in those pools. Those
disclosures include information about any limitations or restrictions on participant withdrawals.
42
•
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 2-Deposits (Cash)and Investments
Authorization for Deposits and Investments
The Texas Public Funds Investment Act (PFIA), as prescribed in Chapter 2256 of the Texas Government Code,
regulates deposits and investment transactions of the City.
In accordance with applicable statutes, the City has a depository contract with an area bank(depository)providing
for interest rates to be earned on deposited funds and for banking charges the City incurs for banking services
received. The City may place funds with the depository in interest and non-interest bearing accounts. State law
provides that collateral pledged as security for bank deposits must have a market value of not less than the amount
of the deposits and must consist of: (1) obligations of the United States or its agencies and instrumentalities; (2)
direct obligations of the State of Texas or its agencies; (3) other obligations, the principal and interest on which
are unconditionally guaranteed or insured by the State of Texas; and/or (4) obligations of states, agencies,
counties, cities, and other political subdivisions of any state having been rated as to investment quality by a
nationally recognized investment rating firm and having received a rating of not less than A or its equivalent. City
policy requires the collateralization level to be at least 102%of market value of principal and accrued interest.
The Council has adopted a written investment policy regarding the investment of City funds as required by the
Public Funds Investment Act (Chapter 2256, Texas Government Code). The investments of the City are in
compliance with the City's investment policy. The City's investment policy is more restrictive than the PFIA
requires. It is the City's policy to restrict its direct investments to obligations of the U.S. Government or U.S.
Government Agencies, obligations of states, counties, and cities, fully collateralized certificates of deposit,
bankers' acceptances, mutual funds, repurchase agreements and local government investment pools. The
maximum maturity allowed is five years from date of purchase. The City's investment policy does not allow
investments in collateralized mortgage obligations.
43
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 2-Deposits(Cash)and Investments (continued)
Deposit and Investment Amounts
The City's cash and investments are classified as: cash and cash equivalents, investments, and restricted cash and
investments. The cash and cash equivalents include cash on hand, deposits with financial institutions, and short-
term investments,which have maturities at purchase of less than three months, consisting mainly of certificates of
deposit. The restricted cash and investments are assets restricted for specific use. The restricted cash and
investments include cash on deposit with financial institutions. For better management of cash, the City pools the
cash, based on the City's needs, into either bank/sweep accounts, or in longer-term investments in U.S.
Government Securities. However, each fund's balance of cash and investments is maintained in the books of the
City.
The deposit and investment policies for the Pearland Economic Development Corporation, TIRZ No. 2 and
Development Authority of Pearland are substantially the same as the City.
The following schedule shows the City's recorded cash and investments at year-end:
• Total Fair Value
Cash deposits $ 154,850,426
Temporary Investments
TexSTAR 14,004,469
FAMC discount note 3,022,206
FFCB discount note 3,039,688
FHLB discount note 3,035,232
FHLMC discount note 2,013,873
FNMA discount note 7,060,419
Certificates of deposit 31,340,953
$ 218,367,266
At September 30, 2016, the City reported cash deposits in the amount of$156,018,263. The entire amount was
covered by federal depository insurance and by pledged collateral held by the City's agent in the City's name.
Quoted market prices are the basis of the fair value for U.S. Treasury and Agency securities. The amount of
increase or decrease in the fair value of investments during the current year is included in the City's investment
income as follows:
Total Fair Value
Interest income $ 711,152
Unrealized gain (loss) on
temporary investments 311,327
Investment earnings $ 1,022,479
The City's investments' fair value measurements are as follows at September 30,2016:
Fair Value Measurement Using
Investments Fair Value Level 1 Inputs Level 2 Inputs Level 3 Inputs
U.S Agency Securities $ 18,171,418 $ 18,171,418
Certificates of deposit 31,340,953 31,340,953
44
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 2-Deposits(Cash) and Investments (continued)
Interest Rate Risk
At year-end, the City had the following investments subject to interest rate risk disclosure, under U.S. generally
accepted accounting principles:
Weighted
Average
Total Fair Value Maturity (days)
Temporary Investments
TexSTAR $ 14,004,469 45
FAMC discount note 3,022,206 1,982
FFCB discount note 3,039,688 1,370
FHLB discount note 3,035,232 1,211
FHLMC discount note 2,013,873 1,172
FNMA discount note 7,060,419 1,452
Certificates of deposit 31,340,953 1,764
$ 63,516,840
Portfolio weighted average maturity 1,287
The City's investment policy specifies a maximum weighted average maturity for the portfolio of 900 days or 30
months based on the stated maturity date of the investments. When including cash investments the weighted
average maturity for the City is 375 days.
To the extent possible, the City attempts to match investments with anticipated cash flow requirements. The City
does not directly invest in securities with a stated maturity date more than five years or 1,825 days from date of
purchase. The settlement date is considered the date of purchase.
Concentration of Credit Risk
With the exception of U.S.Treasury Securities and interest-bearing checking accounts that are fully collateralized,
no more than 75 percent of the City's total investment portfolio will be invested in a single security type. As of
September 30, 2016, the City had investments in U.S. Agency securities that exceeded five percent of the total
investment portfolio at year-end.
Percentage of
Total
Investment
Investment Type Total Fair Value Portfolio
TexSTAR $ 14,004,469 22%
FAMC discount note 3,022,206 5%
FFCB discount note 3,039,688 5%
FHLB discount note 3,035,232 6%
FHLMC discount note 2,013,873 3%
FNMA discount note 7,060,419 11%
Certificates of deposit 31,340,953 49%
Total $ 63,516,840 100%
45
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 2-Deposits(Cash) and Investments(continued)
Credit Risk
Federal National Mortgage Association, Federal Home Loan Bank, Federal Home Loan Mortgage Corporation,
Federal Farm Credit Bank and the Federal National Mortgage Association Discount Notes were rated AA+ by
Standard&Poor's,AAA by Fitch Ratings,and Aaa by Moody's Investors Service.
All credit ratings meet acceptable levels required by guidelines prescribed by both the PFIA and the City's
investment policy. A public fund investment pool must be continuously rated no lower than AAA or AAAm or
no lower than investment grade by at least one nationally-recognized rating service and have a weighted average
maturity no greater than 90 days. Investments with minimum required ratings do not qualify as authorized
investments during the period the investment does not have the minimum rating.
In accordance with GASB Statement No. 79, Certain External Investment Pools and Pool Participants, the Local
Government Investment Pools do not have any limitations and restrictions on withdrawals such as notice periods
or maximum transaction amounts. These pools do not impose any liquidity fees or redemption gates.
Restricted Assets
The Enterprise Funds have restricted certain cash and investments for customer deposits, reserve and emergency
expenditures, capital improvements, cash restricted for others, and revenue bond debt service. Because of certain
bond covenants,the Enterprise Fund is required to maintain prescribed amounts of resources that can be used only to
service outstanding debt. Some of the proceeds from debt or from funds received from acquisition of Municipal Utility
Districts are restricted for use on capital projects.
Revenue bond debt service $ 3,275,648
Customer deposits 3,530,776
Capital improvements 79,615,370
Total $ 86,421,794
Note 3-Receivables
Receivables at September 30,2016,consisted of the following:
Primary Government:
Governmental Funds:
Non-major
Debt Service Capital Governmental
General Fund Fund Projects Fund Funds Total
Receivables
Property taxes,including
penalties and interest $ 534,224 $ 923,872 $ $ $ 1,458,096
Lease receivable 9,258,108 9,258,108
Sales and other taxes 4,824,208 2,024,508 6,848,716
Interest 26,226 3,589 14,584 25;255 69,654
Other 749,595 6,595,654 3,087,361 10,432,610
Allowance for
uncollectibles (8,151) (14,064) (22,215)
$ 6,126,102 $ 10,171,505 $ 6,610,238 $ 5,137,124 $ 28,044,969
46
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 3 -Receivables (continued)
Proprietary Funds:
Governmental
Business-type Activities -Enterprise Funds Activities-
Water and Solid Waste Internal Service
Sewer Fund Fund Total Fund
Receivables
Customer accounts $ 3,536,191 $ 712,339 $ 4,248,530 $
Interest 39,933 8 39,941
Other 178,159 178,159 2,473
Allowance for
uncollectibles (56,621) (37,654) (94,275)
$ 3,697,662 $ 674,693 $ 4,372,355 $ 2,473
Governmental funds report receivables for revenues that are not considered to be available to liquidate liabilities of
the current period.At the end of the current fiscal year,the various components of unavailable and unearned revenue
reported in the governmental funds were as follows:
Unavailable Unearned
Delinquent property taxes receivable-general fund $ 497,272 $
Delinquent property taxes receivable-debt service fund 846,075
Lease revenues-principal 7,253,466
Street assessments 1,429,570
Other 5,385,184
Lease interest revenues 1,934,750
Grants and revenues prior to meeting all eligibility requirements 574,356
Total $ 15,411,567 $ 2,509,106
Property Taxes
Property taxes are levied by October 1 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. The Central Appraisal District ("CAD") of Brazoria County, Harris County, and Fort Bend
County, Texas, establishes appraised values. Taxes are levied by the City Council based on the appraised values and
operating needs of the City. The City contracts billing and collection of tax levies with the Brazoria County Tax
Assessor-Collector.
47
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 4-Capital Assets
A summary of changes in the primary government's capital assets for the year ended September 30,2016,follows:
Balance (Decreases) Balance
September 30, and September 30,
2015 Increases Reclassifications 2016
Governmental Activities
Capital assets not being depreciated:
Land $ 31,150,299 $ $ $ 31,150,299
Construction in progress 23,548,121 27,977,895 (2,275,599) 49,250,417
Total capital assets not being depreciated 54,698,420 27,977,895 (2,275,599) 80,400,716
Other capital assets: .
Infrastructure 946,115,942 28,222,208 974,338,150
Building and improvements 107,269,124 336,087 107,605,211
Machinery and equipment 18,613,770 2,076,021 (63,818) 20,625,973
Furniture and fixtures 5,763,748 632,647 6,396,395
Total other capital assets 1,077,762,584 31,266,963 (63,818) 1,108,965,729
Less accumulated depreciation for:
Infrastructure (307,425,872) (28,159,939) (335,585,811)
Buildings and improvements (26,975,472) (3,584,075) (30,559,547)
Machinery and equipment (10,599,258) (1,730,742) 63,659 (12,266,341)
Furniture and fixtures (2,966,966) (500,215) (3,467,181)
Total accumulated depreciation (347,967,568) (33,974,971) 63,659 (381,878,880)
Other capital assets,net 729,795,016 (2,708,008) (159) 727,086,849
Totals $ 784,493,436 $ 25,269,887 $ (2,275,758) $ 807,487,565
Balance (Decreases) Balance
September 30, and September 30,
2015 Increases Reclassifications 2016
Business-type Activities
Capital assets not being depreciated:
Land $ 3,796,382 $ $ $ 3,796,382
Construction in progress 8,735,842 11,530,764 (353,908) 19,912,698
Total capital assets not being depreciated 12,532,224 11,530,764 (353,908) 23,709,080
Other capital assets:
Water and sewer system 339,663,435 4,767,635 344,431,070
Buildings and improvements 31,239,872 426,940 31,666,812
Machinery and equipment 4,102,808 795,918 (68,034) 4,830,692
Furniture and fixtures 120,922 120,922
Contractual water rights 34,511,428 34,511,428
Total other capital assets 409,638,465 5,990,493 (68,034) 415,560,924
Less accumulated depreciation for:
Water and sewer system (102,965,803) (7,803,579) (110,769,382)
Buildings and improvements (5,546,497) (727,788) (6,274,285)
Machinery and equipment (2,896,671) (427,141) 68,034 (3,255,778)
Furniture and fixtures (91,611) (9,095) (100,706)
Contractual water rights (10,045,331) (1,380,457) (11,425,788)
Total accumulated depreciation (121,545,913) (10,348,060) 68,034 (131,825,939)
Other capital assets,net 288,092,552 (4,357,567) 283,734,985
Totals $ 300,624,776_ $ _ 77173,197 $ (353,908) $ 307,444,065
48
CITY OF PEARLAND,TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 4-Capital Assets (continued)
Depreciation was charged to programs as follows:
General government $ 846,449
Public safety 2,615,925
Public works 27,973,832
Community services 154,658
Parks and recreation 2,384,107
Total Governmental Activity $ 33,974,971
Water and sewer $ 10,348,060
Total Business-Type Activity $ 10,348,060.
The City had active construction projects as of September 30, 2016. The projects included various
improvements to streets, drainage and facilities as well as and water and sewer improvements. At year-end, the
City's contractual commitments on projects were as follows:
Remaining
Project Description Contract Total In Progress Commitment
Drainage Improvement $ 27,135,856 $ 2,391,337 $ 24,744,519
Building Improvements 25,437,105 5,948,528 19,488,577
Street Improvement 142,740,806 29,987,281 112,753,525
Park Improvements _ 21,566,757 10,923,271 10,643,486
Total Governmental Activities 216,880,524 49,250,417 167,630,107
Water and Sewer Improvements 55,439,222 19,912,698 35,526,524
Total Primary Government $ 272,319,746 $ 69,163,115 $ 203,156,631
Note 5-Long-Term Debt
A. Governmental Activity Debt
The City issues general obligation bonds and certificates of obligation, and upon annexation and dissolution of
Municipal Utility Districts, assumes unlimited tax and revenue obligations. The assumed obligations were used to
acquire and construct major capital facilities. General obligation bonds, certificates of obligation, and assumed
obligations from dissolved and annexed areas are for both governmental and business-type activities. The bonds are
reported in the Proprietary Funds only if they are expected to be repaid from proprietary revenues. The general long-
term bonds, certificates of obligation and assumed obligations are paid through the Debt Service Fund from tax
revenues.
The City's component units,which are considered blended components units,have revenue bonds used to acquire and
construct or to reimburse developers for major capital improvements. Revenue bonds are paid through the Pearland
Economic Development Corporation from sales tax and through the Development Authority of Pearland from property
tax increment.
49
CITY OF PEARLAND,TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 5-Long-Term Debt(continued)
A. Governmental Activity Debt(continued)
The City issued $13,995,000 of Certificates of Obligation, Series 2016 dated June 21, 2016. Proceeds from the
sale of the certificates will be used for (i) improvements to Orange Street; (ii) improvements to Centennial Park
and SCR Trail; (iii) improvements and renovations to existing City facilities including Tom Reid Library, City
Hall Complex, Orange Service Center and Fire Station #1; and (iv) professional services rendered in connection
with the above listed projects.
The City issued $10,210,000 of Permanent Improvement Refunding Bonds, Series 2015A dated November 18,
2015. Proceeds from the sale of the bonds will be used to refund certain outstanding obligations of the City and to
pay the costs of issuance of the Bonds. The refunding is being undertaken to lower the City's debt service
payments and will result in a present value savings to the City.
The City issued $33,275,000 of Permanent Improvement Refunding Bonds, Series 2016A dated May 3, 2016.
Proceeds from the sale of the bonds will be used(i) construction and improvement to City streets; (ii) construction
and improvements to the City drainage system; (iii) construction and improvements to City parks; (iv)
construction and improvements to City facilities; (v) to refund certain outstanding obligations of the City; and(vi)
to pay the costs of issuance of the Bonds.
The City issued $66,030,000 of Tax Increment Contract Revenue and Refunding Bonds Proceeds, Series 2015
dated November 5, 2015. Proceeds from the sale of the bonds were used to reimburse the developer$19,575,000
for infrastructure within the TIRZ boundaries.
The City issued $14,640,000 of Sales Tax Revenue Refunding Bonds, Series 2016 dated September 8, 2016.
Proceeds from the sale of the certificates will be used for the purpose of current refunding portions of the
Economic Development Corporation's outstanding Sales Tax Revenue and Refunding Bonds, Series 2005 and
Sales Tax Revenue Bonds, Series 2006.
The following is a summary of changes in the City's total governmental long-term liabilities for the year ended
September 30, 2016. In general, the City uses the General and Debt Service funds as well as the Economic
Development Corporation and Development Authority to liquidate governmental long-term liabilities.
Balance Balance Amounts Due
September 30, September 30, Within One
2015 Additions (Reductions) 2016 Year
Governmental Activities
Bonds payable:
General obligation bonds $ 245,865,000 $ 43,485,000 $ (26,485,000) $ 262,865,000 $ 10,620,000
Certificates of obligation 50,030,000 13,995,000 (13,955,000) 50,070,000 2,790,000
Sales tax revenue bonds 15,265,000 14,640,000 (15,265,000) 14,640,000 890,000
Tax increment revenue bonds 61,695,000 66,030,000 (50,995,000) 76,730,000 5,260,000
Unamortized premium/(discount) 16,185,066 4,551,016 (1,942,776) 18,793,306
Total bonds payable 389,040,066 142,701,016 (108,642,776) 423,098,306 19,560,000
Other liabilities:
Obligations under capital leases 3,628,715 1,917,855 (1,317,520) 4,229,050 1,277,139
Compensated absences 5,804,207 3,309,837 (2,931,174) 6,182,870 1,077,550
Other post-employment benefits 2,515,987 238,140 2,754,127
Total Governmental Activities $ 400,988,975 $ 148,166,848 $ (112,891,470), $ 436,264,353 $ 21,914,689
50
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 5-Long-Term Debt(continued)
A. Governmental Activity Debt(continued)
Long-term liabilities applicable to the City's governmental activities are not due and payable in the current period,
and accordingly, are not reported as fund liabilities in the governmental funds. Interest on long-term debt is not
accrued in governmental funds,but rather is recognized as an expenditure when due.
The full amount estimated to be required for debt service on general obligation debt is provided by(1)the debt service
portion of the tax levy; (2) interest earned in the Debt Service Fund; and (3) transfers fi-om the Water and Sewer
Enterprise Fund. Transfers from the Enterprise Funds are approved at the discretion of City Council and are not
intended to service a specific bond series.
A summary of the terms of general obligation bonds and certificates of obligation,as of September 30,2016,follows:
Original Interest Debt
Series Issue Matures Rate(%) Outstanding
General Obligation Bonds
Permanent Improvement and Refunding Bonds,Series 2007 69,640,000 2032 4.00-5.00 $ 36,180,000
Permanent Improvement,Series 2008 22,835,000 2032 4.50-5.50 10,595,000
Permanent Improvement and Refunding Bonds,Series 2009 16,735,000 2034 2.00-5.00 14,160,000
Permanent Improvement,Series 2010A 12,415,000 2035 3.00-4.00 10,245,000
Permanent Improvement Refunding,Series 2010B 1,630,000 2018 2.00-4.00 330,000
Permanent Improvement,Series 2011 5,400,000 2036 2.125-4.125 4,750,000
Permanent Improvement and Refunding Bonds,Series 2012 43,575,000 2029 3.00-5.00 40,935,000
Permanent Improvement Bonds,Series 2013 9,315,000 2038 3.00-5.00 8,450,000
Permanent Improvement and Refunding Bonds,Series 2014 40,410,000 2034 2.00-5.00 38,140,000
Permanent Improvement Refunding Bonds,Series 2015 47,165,000 2032 2.00-5.00 47,165,000
Permanent Improvement Bonds,Series 2015 8,495,000 2035 2.00-4.00 8,070,000
Permanent Improvement Refunding Bonds,Series 2015-A 10,210,000 2029 2.00-3.00 10,050,000
Permanent Improvement Refunding Bonds,Series 2016-A 33,275,000 2036 2.00-5.00 33,275,000
Annexed Municipal Utility District Bonds
BC MUD 4 Series 2011 2,640,000 2032 2.50-5.00 520,000
Total General Obligation Bonds $ 262,865,000
Certificates of Obligation •
Certificates of Obligation,Series 2007 23,250,000 2032 3.25-5.25 $ 7,810,000
Certificates of Obligation,Series 2008 9,000,000 2032 3.75-5.00 510,000
Certificates of Obligation,Series 2009 8,520,000 2034 2.25-5.00 7,130,000
Certificates of Obligation,Series 2009A 12,145,000 2029 2.00-4.50 8,305,000
Certificates of Obligation,Series 2011 2,095,000 2021 2.09 1,045,000
Certificates of Obligation,Series 2013 2,745,000 2038 3.00-4.625 2,500,000
Certificates of Obligation,Series 2014 4,625,000 2034 2.00-4.00 4,160,000
Certificates of Obligation,Series 2015 4,860,000 2035 2.00-4.00 4,615,000
Certificates of Obligation,Series 2016 13,995,000 2036 2.00-4.00 13,995,000
Total Certificates of Obligation $ 50,070,000
51
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 5-Long-Term Debt(continued)
A. Governmental Activity Debt(continued)
A summary of the terms of the revenue bonds recorded as long-term liabilities in the Pearland Economic
Development Corporation and Development Authority of Pearland as of September 30,2016,is as follows:
Interest Debt
Series Original Issue Matures Rate(%) Outstanding
Pearland Economic Development Corporation
Sales Tax Revenue Refunding Bonds,Series 2016 $ 14,640,000 2030 2.36 $ 14,640,000
Development Authority of Pearland
Tax Increment Revenue Bonds,Series 2013 9,150,000 2029 3.77 7,975,000
Tax Increment Revenue Bonds,Series 2014 8,060,000 2029 3.00 7,005,000
Tax Increment Revenue Bonds,Series 2015 66,030,000 2029 3.00 61,750,000
Total Component Unit Long-Term Debt $ 91,370,000
Current Year Refunding
The Contract Revenue and Refunding Bonds, Series 2015 were issued on November 12, 2015 in the amount of
$66,030,000 to refund outstanding obligations of the Development Authority in the amount of$45,830,000, with
the remainder to reimburse the developer for infrastructure within the TIRZ boundaries. The new bonds bear
interest of 2.74% and are due in annual installments ranging from$5,460,000 to $6,045,000 through September 1,
2029. The refunding will save $1.8 million over 14 years, or annual savings of about $129,000 with a present
value savings percent of 3.3%
The Permanent Improvement Refunding Bonds, Series 2015A were issued on December 15, 2015 in the amount
of$10,210,000 to refund outstanding obligations of the City. The new bonds bear interest from 2.00% to 3.00%
and are due in annual installments ranging from $370,000 to $2,215,000 through March 1, 2029. The refunding
will save $1.4 million over 13 years, or annual savings of about$110,000 with a present value savings percent of
11.8%
The Permanent Improvement and Refunding Bonds, Series 2016A were issued on June 2, 2016 in the amount of
$33,275,000 to refund outstanding obligations of the City in the amount of$17,810,000, with the remainder for
construction and improvements. The new bonds bear interest from 2.00% to 5.00% and are due in annual
installments ranging from $840,000 to $7,335,000 through September 30, 2036. The refunding will save $2.7
million over 16 years, or annual savings of about$169,000 with a present value savings percent of 11.7%
The.Sales Tax Revenue Refunding Bonds, Series 2016 were issued on September 8, 2016 in the amount of
$14,640,000 to refund certain outstanding obligations of the Economic Development Corporation. The new bonds
bear interest of 2.36% and are due in annual installments ranging from $1,230,000 to $1,260,000 through
September 1, 2030. The refunding will save$2.7 million over 14 years, or annual savings of about$195,000 with
a present value savings percent of 15.8%.
52
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 5-Long-Term Debt(continued)
A. Governmental Activity Debt(continued)
Prior Year Refunding
In prior years,the City defeased certain general obligation and other bonds by placing the proceeds of the new bonds
in an irrevocable trust to provide for all future debt service payments on the refunded bonds. Accordingly, the trust
account assets and the liability for the defeased bonds are not included in the City's financial statements. At
September 30, 2016, approximately $62.2 million of previously refunded bonds outstanding were considered
defeased.
General Obligation
CO Series 2007 $ 13,590,000
PIB Series 2007 22,905,000
PIB Series 2008 10,130,000
CO Series 2008 7,520,000
LJL Tax Bds Series 2011 1,600,000
$55,745,000
Development Authority of Pearland
Series 2009 $ 6,515,000
$ 6,515,000
Total: $62,260,000
Capital Lease Obligations
•
The City has entered into certain capital lease agreements in order to purchase public safety and management
information systems, equipment and other construction-related equipment. The capital lease obligations are paid out
of the General, Debt Service and Water and Sewer Funds. The historical purchase price of the capital assets under
lease is approximately$7.4 million and entirely classified as machinery and equipment.
Following is a summary of future lease payments due on this equipment:
Fiscal Year Obligations
2017 $ 1,354,345
2018 1,091,478
2019 908,280
2020 663,060
•
2021 212,806
2022-2023 188,973
Total 4,418,942
Less: Interest (189,892)
Obligations under capital leases $ 4,229,050
53
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 5-Long-Term Debt(continued)
A. Governmental Activity Debt(continued)
The annual requirements to amortize governmental activity general obligation bonds and certificates of obligation
outstanding at September 30,2016,were as follows:
Governmental Activities
General Obligation Certificates of Obligation
Fiscal Year Principal Interest Principal Interest
2017 $ 10,620,000 $ 10,852,389 $ 2,790,000 $ 1,724,936
2018 10,480,000 10,146,900 3,535,000 1,531,919
2019 14,070,000 9,707,234 2,620,000 1,435,618
2020 14,750,000 9,173,047 2,440,000 1,366,730
2021 15,320,000 8,580,784 2,460,000 1,300,243
2022 16,080,000 7,953,117 2,260,000 1,233,048
2023 16,700,000 7,272,773 2,280,000 1,164,526
2024 17,280,000 6,522,542 2,300,000 1,091,386
2025 18,050,000 5,752,987 2,320,000 1,013,197
2026 18,625,000 4,977,473 2,345,000 932,223
2027 17,790,000 4,190,483 3,950,000 818,198
2028 18,445,000 3,448,791 4,050,000 677,806
2029 19,080,000 2,726,166 4,165,000 536,047
2030 12,190,000 2,104,578 3,245,000 405,551
2031 14,265,000 1,549,390 1,695,000 318,919
2032 14,795,000 923,325 1,770,000 257,191
2033 4,430,000 510,733 1,805,000 191,545
2034 4,545,000 320,589 1,835,000 123,798
2035 2,765,000 168,151 1,075,000 58,447
2036 1,615,000 78,522 840,000 27,150
2037 480,000 33,763 140,000 10,175
2038 490,000 11,331 150,000 3,469
$ 262,865,000 $ 97,005,068 $ 50,070,000 $ 16,222,122
54
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 5-Long-Term Debt(continued)
A. Governmental Activity Debt(continued)
The annual requirements to amortize blended component unit revenue bonds outstanding at September 30, 2016,
were as follows:
Governmental Activities
Sales Tax Revenue Bonds -Tax Increment Revenue Bonds
Fiscal Year Principal Interest Principal Interest
2017 $ 890,000 $ 338,786 $ 5,260,000 $ 2,183,144
2018 905,000 324,500 5,405,000 2,035,158
2019 930,000 303,142 5,560,000 1,882,997
2020 955,000 281,194 5,315,000 1,726,437
2021 975,000 258,656 5,465,000 1,576,317
2022 1,000,000 235,646 5,620,000 1,421,885
2023 1,025,000 212,046 5,785,000 1,260,427
2024 1,055,000 187,856 5,945,000 1,096,254
2025 1,080,000 162,958 6,115,000 927,133
2026 1,105,000 137,470 6,290,000 752,790
2027 1,130,000 111,392 6,470,000 573,088
2028 1,165,000 84,724 6,655,000 387,840
2029 1,195,000 57,230 6,845,000 196,856
2030 1,230,000 29,028
$ 14,640,000 $ 2,724,628 $ 76,730,000 $ 16,020,326
55
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 5-Long-Term Debt(continued)
B. Business-type Activity Debt
The City issued $8,880,000 of Water and Sewer System Revenue Bonds, Series 2016A dated June 21, 2016.
Proceeds from the sale of the bonds will be used for waterworks and sanitary sewer system repairs,
improvements,and to pay the costs of issuance of the bonds.
The City issued $11,100,000 of Water and Sewer System Revenue Bonds, Series 2016B dated August 4, 2016.
Proceeds from the sale of the bonds will be used for waterworks and sanitary sewer system repairs,
improvements,and to pay the costs of issuance of the bonds.
The City issued $50,100,000 of Water and Sewer System Revenue Bonds, Series 2016C dated August 4, 2016.
Proceeds from the sale of the bonds will be used for waterworks and sanitary sewer system repairs,
improvements,and to pay the costs of issuance of the bonds.
The following is a summary of changes in the City's total business-type long-term liabilities for the year ended
September 30,2016.
Balance Balance Amounts Due
September 30, September 30, Within One
2015 Additions _ (Reductions) 2016 Year
Business-type Activities
Bonds payable:
Permanent Improvement Bonds $ 11,335,000 $ $ (1,560,000) $ 9,775,000 $ 2,415,000
Water and sewer revenue bonds 107,410,000 70,080,000 (3,920,000) 173,570,000 7,630,000
Unamortized premium/(discount) 659,022 314,646 (123,619) 850,049
Total bonds payable 119,404,022 70,394,646 (5,603,619) 184,195,049 10,045,000
Other liabilities:
Obligations under capital leases 82,180 423,293 (130,115) 375,358 118,314
Compensated absences 627,162 321,697 (319,746) 629,113 133,377
Other post-employment benefits 455,515 42,025 497,540
Total Business-type Activities $ 120,568,879 $ 71,181,661 $ (6,053,480) $ 185,697,060 $ 10,296,691
56
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 5-Long-Term Debt(continued)
B. Business-type Activity Debt(continued)
The business-type activity long-term debt will be repaid,plus accrued interest, from operating revenues of the Water
and Sewer Fund. The City is required by the applicable revenue bond indentures to pledge the net revenues of the
Water and Sewer Fund for the retirement of its outstanding revenue bonds,including interest thereon. Revenue bonds
and refunding bonds are payable solely from and, equally secured by, a first lien on and pledge of the net revenue of
the City's Water and Sewer Fund.
A summary of the terms of revenue bonds and permanent improvement bonds recorded in the Enterprise Funds as of
September 30,2016,is as follows: .
Interest Debt
Series Original Issue Matures Rate(%) Outstanding
Water and Wastewater Fund
Water and Sewer System Adjustable Rate Revenue Bonds,
Series 1999 $ 8,000,000 2020 4.41-4.60 $ 2,300,000
Water and Sewer System Revenue and Refunding Bonds,
Series 2006 13,845,000 2031 3.74-4.82 8,715,000
Water and Sewer System Revenue and Refunding Bonds,
Series 2007 40,135,000 2031 3.50-5.50 33,730,000
Water and Sewer System Revenue Bonds,Series 2008 14,950,000 2034 4.125-5.00 13,125,000
Water and Sewer System Revenue Bonds,Series 2009 13,130,000 2034 3.00-5.50 10,555,000
Permanent Improvement and Refunding Bonds,Series 2009 11,660,000 2018 2.00-5.00 4,220,000
Water and Sewer System Revenue Bonds,Series 2010A 14,040,000 2035 1.75-4.50 11,690,000
Water and Sewer System Refunding Bonds,Series 2010B 8,970,000 2023 1.75-4.00 7,150,000
Permanent Improvement and Refunding Bonds,Series 2012 6,230,000 2025 3.00-5.00 5,555,000
Water and Sewer System Revenue Bonds,Series 2012 8,670,000 2037 2.00-3.625 7,360,000
Water and Sewer System Revenue Bonds,Series 2014 9,210,000 2039 2.00-4.00 8,865,000
Water and Sewer System Revenue Bonds,Series 2016A. 8,880,000 2036 2.00-4.00 8,880,000
Water and Sewer System Revenue Bonds,Series 2016B 11,100,000 2025 2.00-4.00 11,100,000
Water and Sewer System Revenue Bonds,Series 2016C 50,100,000 2045 2.00-4.00 50,100,000
Total Utility System Fund $ 183,345,000
57
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 5-Long-Term Debt(continued)
B. Business-type Activity Debt(continued)
The annual requirements to amortize Enterprise Fund revenue bonds and permanent improvement bonds outstanding
at September 30,2016,were as follows:
Business-Type Activities
Revenue Bonds Permanent Improvement Bonds
Fiscal Year Principal Interest Principal Interest
2017 $ 7,630,000 $ 5,129,559 $ 2,415,000 $ 344,000
2018 7,785,000 4,872,384 2,515,000 232,188
2019 7,960,000 4,692,913 365,000 171,700
2020 8,150,000 4,505,840 370,000 157,000
2021 8,405,000 4,303,480 370,000 142,200
2022 8,460,000 4,086,643 385,000 127,100
2023 8,680,000 3,861,143 395,000 111,500
2024 7,860,000 3,622,449 1,480,000 74,000
2025 8,130,000 3,400,994 1,480,000 22,200
2026 8,625,000 3,158,977
2027 8,940,000 2,824,605
2028 9,275,000 2,472,914
2029 9,610,000 2,127,409
2030 9,925,000 1,795,641
2031 10,245,000 1,448,009
2032 6,300,000 1,085,239
2033 6,510,000 862,255
2034 6,715,000 637,977
2035 3,840,000 403,087
2036 3,040,000 305,198
2037 2,635,000 • 243,092
2038 2,305,000 192,577
2039 2,340,000 152,966
2040 1,700,000 111,746
2041 1,700,000 93,556
2042 1,700,000 75,196
2043 1,700,000 56,666
2044 1,700,000 37,966
2045 1,705,000 19,096
$ 173,570,000 $ 56,579,574 $ 9,775,000 $ 1,381,888
C. Legal Compliance
Long-term debt assumed by the City upon dissolution of annexed municipal utility district in fiscal years 2006,2007,
and 2013 has been recorded as part of the City's long-term debt. A portion of the assumed debt is related to assets
recorded in the Water and Sewer Fund. Even though the debt is related to assets recorded in the Water and Sewer
Fund,the debt is considered general obligation debt based on Texas law.
58
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 6-Interfund Transactions
A summary of interfund transfers, the purpose of which is to cover operational expenses/expenditures, for the year
ended September 30,2016,is as follows:
Transfers In Transfers Out Amounts Purpose
Overhead allocation for city manager, legal,
General Fund Water Sewer Fund $ 1,540,280 human resources,finance,etc.
General Fund Water Sewer Fund 532,042 Project management
General Fund Capital Projects Fund 967,844 Project management
Pearland Economic Overhead allocation for city manager,legal,
General Fund Development Corporation 1,071,355 human resources,finance,etc.
Total General Fund 4,111,521
Debt Service Fund General Fund 178,982 City's share of UofH facility debt
Debt Service Fund Regional Detention Fund 171,512 Regional Detention fund transfer
Debt Service Fund Water Sewer Fund 453,837 W/S debt in debt service fund
Total Debt Service Fund 804,331
Development Authority of Pearland Tax Increment Reinvestment TIRZ tax increment to DAP for debt service&
Zone#2 12,926,181 developer reimbursement
U of H Fund General Fund 37,112 City's share of UofH capital renewal fund
Pearland Economic
U of H Fund Development Corporation 56,801 UofH debt service
Total Other Governmental Funds 93,913
Capital Projects Fund General Fund 1,200,000 Linwood Subdivision Street&Drainage
Lower Kirby,N.Spectrum, S. Spectrum,
Pearland Economic Hooper Rd,Cullen Beautification,Hickory
Capital Projects Fund Development Corporation 2,851,048 Slough
Park and Recreation
Capital Projects Fund Development Fund 196,000 Green Tee Terrace Trails,Centennial Park
Capital Projects Fund Educational TV Fund 20,250 City Hall Rennovation
Capital Projects Fund Water Sewer Fund 3,859,000 2016A Revenue Bonds
Total Capital Projects Fund 8,126,298
Internal Service Fund Hotel/Motel Tax Fund 772 CVB insurance on property
Intemal Service Fund General Fund 919,642 Share of insurance premiums
Intemal Service Fund Water Sewer Fund 325,063 Share of insurance premiums
Total Internal Service Fund 1,245,477
Water Sewer Fund General Fund 238,081 Operating costs
Pearland Economic
Water Sewer Fund Development Corporation - 8,121 Hooper Road
Total Water Sewer Fund 246,202
Total $ 27,553,923
A summary of interfund receivables and payables at September 30, 2016,follows:
Receivable Fund Payable Fund Amount Purpose
General Fund Grant Fund $ 53,757 Short term loan
59
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 7-Fund Balance/Net Position
Encumbrances
Encumbrance accounting is employed as an extension of formal budgetary integration for the General Fund,
special revenue funds, and capital projects funds. Certain amounts which were classified as restricted, committed,
or assigned for specific purposes have been encumbered in the governmental funds. Significant encumbrances
included in governmental fund balances are as follows:
Encumbrances
General Fund- assigned $ 3,993,907
Capital Projects Fund-restricted 23,136,155
Non-major Funds-restricted 1,423,778
$ 28,553,840
Note 8-Deferred Compensation Plan
The City maintains, for its employees, a tax-deferred compensation plan meeting the requirements of Internal
Revenue Code Section 457. The plan was established in the 1995 fiscal year by City Ordinance, and ICMA
Retirement Corporation is the plan administrator. The deferred compensation is not available to employees until
termination, retirement, death, or unforeseen emergency. The plan's trust arrangements are established to protect
deferred compensation amounts of employees under the plan from any other use other than intended under the plan
(eventual payment to employees deferring the compensation) in accordance with federal tax laws. Amounts of
compensation deferred by employees under plan provisions are disbursed bi-weekly by the City to a third-party
administrator. The third-party administrator handles all funds in the plan and makes investment decisions and
disburses funds to employees in accordance with plan provisions.
Note 9-Employee Retirement System
Texas Municipal Retirement System
Plan Description and Provisions
The City participates as one of 860 plans in the nontraditional,joint contributory, hybrid defined benefit pension
plan administered by the Texas Municipal Retirement System (TMRS). TMRS is an agency created by the State
of Texas and administered in accordance with the TMRS Act, Subtitle G, Title 8, Texas Government Code (the
TMRS Act) as an agent multiple-employer retirement system for municipal employees in the State of Texas. The
TMRS Act places the general administration and management of the System with a six-member Board of
Trustees. Although the Governor, with the advice and consent of the Senate, appoints the Board, TMRS is not
fiscally dependent on the State of Texas. TMRS's defined benefit pension plan is a tax-qualified plan under
Section 401 (a) of the Internal Revenue Code. TMRS issues a publicly available comprehensive annual financial
report(CAFR)that can be obtained at www.tmrs.com.
All eligible employees of the city are required to participate in TMRS.
60
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 9 -Employee Retirement System (continued)
Benefits Provided •
TMRS provides retirement, disability, and death benefits. Benefit provisions are adopted by the governing body
of the City,within the options available in the state statutes governing TMRS.
At retirement, the benefit is calculated as if the sum of the employee's contributions, with interest, and the city-
financed monetary credits with interest were used to purchase an annuity. Members may choose to receive their
retirement benefit in one of seven actuarially equivalent payments options. Members may also choose to receive a
portion of their benefit as a Partial Lump Sum Distribution in an amount equal to 12,24, or 36 monthly payments,
which cannot exceed 75%of the member's deposits and interest.
At the date the plan began, the City granted monetary credits for service rendered before the plan began of a
theoretical amount equal to two times what would have been contributed by the employee, with interest, prior to
establishment of the plan. Monetary credits for service since the plan began are 200% of the employee's
accumulated contributions.
A summary of plan provisions for the City are as follows:
Employee deposit rate: 7%
Matching ratio(city to employee): 2 to 1
Years required for vesting: 5
Service retirement eligibility: 20 years at any age,5 years at age 60 and above
Updated service credit: 75%repeating
Annuity increase to retirees: 50%of CPI repeating
Supplemental death benefit—employees
and retirees: Yes
The City does not participate in Social Security.
At the December 31,2015 valuation and measurement date,the following employees were covered by the benefit
terms:
Retirees or beneficiaries currently receiving benefits: 174
Inactive employees entitled to but not yet receiving benefits: 256
Active employees: 605
Total: 1,035
Contributions
The contribution rates for employees in TMRS are either 5%, 6%, or 7% of employee gross earnings, and the city
matching percentages are either 100%, 150%, or 200%, both as adopted by the governing body of the city. Under
the state law governing TMRS, the contribution rate for each city is determined annually by the consulting
actuary, using the Entry Age Normal (EAN) actuarial cost method. The actuarially determined rate is the
estimated amount necessary to finance the cost of benefits earned by employees during the year, with an
additional amount to finance any unfunded accrued liability.
Employees for the City were required to contribute 7% of their annual gross earnings during the fiscal year. For
fiscal year 2016, the City made contributions of 13.51% for the months in 2015 and 13.37% for the months in
2016.
61
•
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 9 -Employee Retirement System (continued)
Net Pension Liability
The City's Net Pension Liability (NPL) was measured as of December 31, 2015, and the Total Pension Liability
(TPL)used to calculate the Net Pension Liability was determined by an actuarial valuation as of that date.
Actuarial Assumptions
The Total Pension Liability in the December 31,2015 actuarial valuation was determined using the following
actuarial assumptions:
Inflation: 2.5%per year
Overall payroll growth: 3.0%per year
Investment Rate of Return: 6.75%,net of pension plan investment expense, including inflation
Salary increases were based on a service-related table. Mortality rates for active members, retirees, and
beneficiaries were based on the gender-distinct RP2000 Combined Healthy Mortality Table, with male rates
multiplied by 109% and female rates multiplied by 103%. The rates are projected on a fully generational basis by
scale BB to account for future mortality improvements. For disabled annuitants, the gender-distinct RP2000
Disabled Retiree Mortality Table is used,with slight adjustments.
These actuarial assumptions were developed primarily from the actuarial investigation of the experience of TMRS
over the four year period from December 31, 2010 to December 31, 2014. They were adopted in 2015 and first
used in the December 31, 2015 actuarial valuation. The post-retirement mortality assumption for healthy
annuitants and Annuity Purchase Rate (APRs) are based on the Mortality Experience Investigation Study
covering 2009 through 2011 and dated December 31, 2013. In conjunction with these changes first used in the
December 31, 2013 valuation, the System adopted the Entry Age Normal actuarial cost method and a one-time
change to the amortization policy. Assumptions are reviewed annually. No additional changes were made for the
2015 valuation.
The long-term expected rate of return on pension plan investments is 6.75%. The pension plan's policy in regard
to the allocation of invested assets is established and may be amended by the TMRS Board of Trustees. Plan
assets are managed on a total return basis with an emphasis on both capital appreciation as well as the production
of income, in order to satisfy the short-term and long-term funding needs of TMRS.
The long-term expected rate of return on pension plan investments was determined using a building-block method
in which best estimate ranges of expected future real rates of return (expected returns, net of pension plan
investment expense and inflation)are developed for each major asset class. These ranges are combined to produce
the long-term expected rate of return by weighting the expected future real rates of return by the target asset
allocation percentage and by adding expected inflation.
62
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 9 -Employee Retirement System (continued)
Actuarial Assumptions(continued)
The target allocation and best estimates of arithmetic real rates of return for each major asset class are
summarized in the following table:
Long-term Expected
Real Rate of Return
Asset Class Target Allocation (Arithmetic)
Domestic Equity 17.5% 4.55%
International Equity 17.5% 6.10%
Core Fixed Income 10.0% 1.00%
Non-core Fixed Income 20.0% 3.65%
Real Return 10.0% 4.03%
Real Estate 10.0% 5.00%
Absolute Return 10.0% 4.00%
Private Equity 5.0% 8.00%
Total 100.0%
Discount Rate
The discount rate used to measure the Total Pension.Liability was 6.75%. The projection of cash flows used to
determine the discount rate assumed that employee contributions will remain at the current 7% and employer
contributions will be made at the rates specified in statute. Based on that assumption,the pension plan's Fiduciary
Net Position was projected to be available to make all projected future benefit payments of current plan members.
Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of
projected benefit payments to determine the Total Pension Liability.
Changes in the Net Pension Liability
Increase(Decrease)
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a) (b) (a)-(b)
Balance at 12/31/2014 $108,601,188 $ 91,984,661 $16,616,527
Changes for the year:
Service cost 6,035,636 6,035,636
Interest 7,679,417 7,679,417
Difference between
expected
and actual experience 846,833 846,833
Changes in assumptions (304,820) (304,820)
Contributions-employer 4,786,602 (4,786,602)
Contributions-employee 2,498,961 (2,498,961)
Net investment income 135,758 (135,758)
Benefit payments,
including refunds,
of employee
contributions (3,808,062) (3,808,062)
Administrative expense (82,673) 82,673
Other charges (4,082) 4,082
Net changes 10,449,004 3,526,504 6,922,500
Balance at 12/31/2015 $119,050,192 $ 95,511,165 $23,539,027
63
CITY OF PEARLAND,TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 9 -Employee Retirement System(continued)
Changes in the Net Pension Liability (continued)
The following presents the net pension liability of the City,calculated using the discount rate of 6.75%, as well as
what the City's net pension liability would be if it were calculated using a discount rate that is 1-percentage-point
lower(5.75%) or 1-percentage-point higher(7.75%)than the current rate:
Current
Single Rate
1%Decrease Assumption 1%Increase
to 5.75% 6.75% to 7.75%
City's net pension liability $44,045,864 $23,539,027 $ 7,094,930
Pension Plan Fiduciary Net Position
Detailed information about the pension plan's Fiduciary Net Position is available in a separately-issued
TMRS financial report. That report may be obtained on the Internet at www.tmrs.com.
Pension Expense and Deferred Outflows of Resources Related to Pensions
For the year ended September 30,2016,the City recognized pension expense of$6,475,762.
At September 30, 2016, the City reported deferred outflows and inflows of resources related to pensions from the
following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between actuarial assumptions
and actual experience $ 855,195 $
Changes in actuarial assumptions used 250,583
Differences between projected
and actual investment earnings 5,681,153
Contributions subsequent to
the measurement date 3,938,779
Total $ 10,475,127 $ 250,583
•
64
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 9 -Employee Retirement System (continued)
Deferred outflows of resources related to pensions resulting from contributions subsequent to the measurement
date of$3,938,779 will be recognized as a reduction of the net pension liability for the measurement year ending
December 31, 2016 (i.e. recognized in the city's financial statements September 30, 2017). Other amounts
reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense
as follows:
Net Deferred
Outflows(Inflows) of
Resources
2017 $ 1,611,210
2018 1,611,210
2019 1,611,211
2020 1,392,511
2021 59,623
Total $ 6,285,765
Supplemental Death Benefits Fund
The City also participates in the cost sharing multiple-employer defined benefit group-term life insurance plan
operated by the Texas Municipal Retirement System (TMRS) known as the Supplemental Death Benefits Fund
(SDBF). The City elected,by ordinance,to provide group-term life insurance coverage to both current and retired
employees. The city may terminate coverage under and discontinue participation in the SDBF by adopting an
ordinance before November 1 of any year to be effective the following January 1.
The death benefit for active employees provides a lump-sum payment approximately equal to the employee's
annual salary (calculated based on the employee's actual earnings, for the 12-month period preceding the month
of death);retired employees are insured for$7,500;this coverage is an"other postemployment benefit,"or OPEB.
Plan Year 2015 Plan Year 2016
The City offers supplemental death to:
Active employees Yes Yes
Retirees Yes Yes
The City contributes to the SDBF at a contractually required rate as determined by an annual actuarial valuation.
The rate is equal to the cost of providing one-year term life insurance. The funding policy for the SDBF program
is to assure that adequate resources are available to meet all death benefit payments for the upcoming year; the
intent is not to pre-fund retiree term life insurance during employees' entire careers.
65
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 9-Employee Retirement System (continued)
The city's contributions to the TMRS SDBF for the fiscal years ended 2016, 2015, and 2014 were $42,135,
$41,740,and$41,299,respectively,which equaled the required contributions each year.
Schedule of Contribution Rates
(Retiree-only portion of the rate, for OPEB)
Annual Required Actual
Plan/Calendar Contribution Contribution Percentage of
Year (Rate) Made(Rate) ARC Contributed
2014 0.01% 0.01% 100%
2015 0.01% 0.01% 100%
2016 0.01% 0.01% 100%
Note 10-Other Post-Employment Benefits
In addition to pension benefits,the City provides access to medical and dental coverage through its selected insurance
carrier,to retirees and/or retiree dependents.The City's other post-employment benefit plan is a single-employer plan.
To qualify for retiree's medical or dental insurance, the retiree must have a minimum of ten years of continuous
service with the City and be at least sixty years of age, or with 20 years of continuous service at any age. The City
provides the coverage on a pay-as-you-go basis similar to current employees,but the City does not pay any portion of
the retiree premium. Therefore,there is an implicit subsidy due to the blended rate paid by the retirees,but there is
no direct liability due from the City as it does not pay any portion of the retiree's costs.
The costs of providing these benefits and number of retired employees are as follows:
Emp/Dep Number
Total City's Coverage of Retired
Cost Cost Cost Employees
$ 69,114 $ $ 69,114 14
Retirees who are entitled to receive retirement benefits under the City's retirement plan may purchase continued
health benefits coverage for the retiree and the retiree's dependents,but shall pay 100%of the premium for coverage.
The retiree, however, is able to receive a lower rate by participating in the City's plan as opposed to individually
purchasing health insurance. The City's coverage is secondary to Medicare when the person becomes eligible for
these benefits.
66
CITY OF PEARLAND,TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 10-Other Post-Employment Benefits(continued)
The Governmental Accounting Standards Board published a guideline regarding accounting and financial reporting
by employers for post-employment benefits other than pensions. This document gives guidance regarding the
methods and timing for reporting. The effect of the Guideline is to cause the cost of retiree benefits to be accrued for
during the working lifetime of the employees.This requires pre-funding or accruing of a liability.The City has elected
to accrue the liability, and the unfunded liability will be funded over a period of 30 years. The results of the City's
most recent actuarial valuation are as follows:
Unfunded
Actuarial (UAAL)as a
Actuarial Actuarial Accrued Annual Percentage of
Valuation Date Actuarial Accrued Percentage Liability Covered Covered
October 1, Value of Assets Liabilities Funded (UAAL) Payroll Payroll
2014 $ $ 10,328,201 0% $ 10,328,201 $ 33,615,923 31%
Net OPEB obligations at year-end for the last three fiscal years are as follows:
2014 2015 2016
Normal cost $ 234,852 $ 387,019 $ 387,019
Amortization of UAAL 177,878 622,015 247,961
Annual required contribution(ARC) 412,730 1,009,034 634,980
Interest on prior-year net OPEB obligation 81,115 96,677 118,860
Amortization of prior-year net OPEB obligation
(ARC adjustment) (142,285) (152,421) (192,316)
Annual OPEB cost(expense) 351,560 953,290 561,524
Employer contributions (342,919) (18,305) (281,359)
Increase in net OPEB obligation 8,641 934,985 280,165
Net OPEB obligation-beginning of year 2,027,876 2,036,517 2,971,502
Net OPEB obligation-end of year . $ 2,036,517 $ 2,971,502 $ 3,251,667
Percentage of Annual OPEB Cost Contributed 97.5% 1.9% 50.1%
The annual cost recorded to the general ledger for fiscal year 2016 is $561,524, which includes the estimated
normal cost of$387,019 to provide for the benefits earned by active employees. The total liability,which is not
recorded to the general ledger,is$10,328,281, and represents the actuarial present value of benefits.
Actuarial valuations for OPEB plans involve estimates of the value of reported amounts and assumptions about
the probability of events far into the future. Actuarially determined amounts are subject to continual revision as
results are compared to past expectations. and new estimates are made about the future. The methods and
assumptions used as of the measurement date of October 1, 2014 include using the projected unit credit actuarial
method, allocation of the total liability into accrued and future liabilities was based upon a straight years of
service ratio, the accrued liability was assumed to be amortized on a closed basis using a level dollar approach
with an amortization period of 24 years, an inflation rate assumption of 2.5%, a discount rate of 4%, and medical
inflation is taken at 9% for pre-Medicare grading down to 5% in the ultimate. Rates of disability were derived
from a Society of Actuaries study. The RP-2014 table(sex distinct)was used for mortality.
Separate, audited GAAP-basis postemployment benefit plan reports are not applicable for the other post-
retirement benefit plan for the City as there are no separately issued plan financial statements.
67
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 11 -Commitments and Contingencies
Litigation and Other Contingencies
The City was involved in various lawsuits and arbitration proceedings at September 30, 2016. The City and its legal
counsel believe that any amounts which the City might ultimately be required to pay.will not exceed underlying
insurance coverage.
Reimbursements due to Developers
Pursuant to the Local Government Code,the Economic Development Corporation offers incentives to attract and retain
businesses to Pearland.The following are the current incentives.
Amounts Paid
Original At
Current Incentives Amount Prior Years Current Year Year End
KS Management-Grant $2,663,000 $ 295,890 $ 295,890 $2,071,220
KS Management-Sales Tax 600,000 27,851 20,576 551,573
Merit Medical Systems, Inc. 888,000 758,000 130,000
Zapp Precision Wire, Inc. 60,000 60,000
Base-Pair 38,500 19,250 9,625 9,625
Keystone 189,000 189,000
Costco 246,827 246,827
Shale-Inland 490,000 490,000
M&S Logistics 60,000 20,000 40,000
Brask Neela 70,000 35,000 35,000
Lonza Phase 1 600,000 600,000
Tool Flo 1,152,000 1,152,000
Lonza Phase 2 450,000 450,000
$7,507,327 $1,100,991 $ 817,918 $5,588,418
Shadow Creek Town Center
In 2004,the City, along with the Reinvestment Zone Number Two (the Zone) and the Development Authority of
Pearland (the Authority), component units of the City, entered into an agreement with a developer to reimburse
the developer all or a portion of the project costs to implement the Shadow Creek Ranch Development TIRZ
(TIRZ Plan). As projects implementing the TIRZ Plan are completed, the Zone Board may recommend to the
City that the Authority reimburse developers on behalf of the Zone and the City. The Zone Board will forward to
the City and the Authority all of the necessary and required documentation supporting the requested
reimbursement and a determination of the exact amount requested for reimbursement, including a calculation of
the amount of interest to be reimbursed on funds advanced for the projects. In addition all monies available in the
Tax Increment Fund shall be transferred to the escrow agent no less than once per year.
On November 13, 2006, the City of Pearland,Pearland Economic Development Corporation(PEDC) and Shadow
Creek Retail, LP entered into an agreement whereby the developer would build and construct a mixed use
commercial development located at the northwest corner of State Highway 288 and Broadway, also known as
FM 518.
68
CITY OF PEARLAND,TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 11-Commitments and Contingencies (continued)
Shadow Creek Town Center(continued)
The Developer provided for the construction of segments of Broadway Street, Business Center Drive, Memorial
Hermann Drive, as well as landscaping, underground utilities,pipeline relocation and other associated costs. The
source of funds for reimbursement of the public infrastructure is both the TIRZ#2 and City and PEDC sales tax
revenue generated from the project. The total funded from TIRZ#2 is $11,749,618 and the amount of TIRZ
improvements to be funded from sales tax is $2,001,931. Once completion and tenant occupancy of at least
318,000 square feet is achieved for a period of three consecutive months, the City and PEDC, shall remit,
monthly, thirty-three percent of sales tax received by the City and PEDC to the Developer until paid in full plus
interest at eight percent per annum for the first two years following completion of the widening of Broadway and
interest at five percent per annum for the subsequent two years. The developer reimbursements funded from sales
tax was complete in fiscal year 2016.
Lower Kirby Urban Center Master Plan
On June. 10, 2013 Pearland adopted a 20/20 Strategic Plan to create a vision for the community's future growth.
One of the strategies was to implement plans to develop the Lower Kirby Urban Center as Pearland's most
intensive mixed-use employment, residential, and entertainment district. The Lower Kirby Master Plan identified
$48 million in priority construction projects that include drainage, water, sewer, streets, traffic, sidewalks, and
streetscape necessary to facilitate development of the area. On March 10, 2014, the City entered into a Master
Financing Agreement with Lower Kirby Pearland Management District and Pearland Municipal Management
District which outlines the process for the City to advance funds to the District(s) in order to facilitate the
development. The City will be reimbursed from the District(s) from bond sales as the area is development and
value on the ground. Each project is taken on a case by case basis and is approved via a Letter of Financing
Agreement(LFA).
As of September 30, 2016 the following LFA's have been approved by and between the City and the LKMD and
the PMMD#1:
Lower Kirby Pearland
Pearland Municipal
Management Management
3/10/2014 Cost District District#1
Dentention Pond $1,900,000 72.3% $ 1,373,700 27.7% $ 526,300
Master Drainage Plan 127,410 72.3% 92,117 27.7% 35,293
Regional Drainage Plan 183,031 72.3% 132,331 27.7% 50,700
Subtotal 1,598,148 612,293
9/29/2014
Hooper Road Reconstruction $1,500,000 100.0% 1,500,000 0.0%
8/10/2015
Kirby Ditch Improvements $1,784,796 100.0% 1,784,796 0.0%
8/24/2015
South Spectrum $ 214,137 55.8% 119,462 44.2% 94,676
Total $ 5,002,406 $ 706,969
69
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 11 -Commitments and Contingencies(continued)
Lower Kirby Urban Center Master Plan(continued)
City funding for these LFA's is via Reimbursement Agreements with the Pearland Economic Development
Corporation,whereby the City gets reimbursed for the cost of these projects by the Corporation; so that the City is
not actually out any dollars.
Chapter 380 Economic Development Agreements
Costco Wholesale Corporation is a membership warehouse club that provides a wide selection of
merchandise. As of 2014, it is the second largest retailer in the United States and the third largest in the world
and the largest membership warehouse club chain in the United States. The City of Pearland has agreed to
provide Costco incentives to build a 150,000 square-foot retail warehouse with an attached tire center and free-
standing fuel facility. Total investment is estimated at $33.7M and the project will create approximately 75 full-
time and 75 part-time jobs.
The agreement with Costco and the City of Pearland, through a Chapter 380 agreement, is to refund Costco 50%
of the 1.0% of sales tax collected by the City at the business location for a period not to exceed 10 years and an
amount not to exceed$750,000. Costco opened in November 2015,with the first payment expected in fiscal year
2016.
Kelsey-Seybold is a large multi-specialty clinic system located in the Greater Houston area and is Houston's
largest and most renowned private multi-specialty physician group. The Kelsey System is a major provider of
healthcare for NASA and a center for healthcare research. The City of Pearland and Pearland Economic
Development Corporation made certain agreements with Kelsey to relocate its administrative headquarters
to Shadow Creek Ranch in Pearland. The headquarters is located in a four story, 170,000-square-foot building at
the intersection of Shadow Creek Parkway and Kirby Drive. The headquarters had a cost of $36 million,
including the costs for equipment, construction, and fees. Construction began in May 2012 and Kelsey begin
operations at the site in October 2013.
The City of Pearland and the Pearland Economic Development Corporation has a 10-year Chapter 380 agreement.
with Kelsey that allows Kelsey to receive a rebate of 60% of the sales tax remitted by Kelsey and its
vendors. The agreement with the City requires a minimum of 600 jobs to be in place as an eligibility factor. To
date the City and Corporation have paid$144,470 in sales tax rebates.
Note 12-Risk Management
The City is exposed to various risks of loss related to torts: theft of, damage to, and destruction of assets; errors
and omissions; injuries to employees; and natural disasters. The City's risk management program mainly
encompasses obtaining property and liability insurance through Texas Municipal League's Intergovernmental
Risk-Pool (TML-IRP), and through commercial insurance carriers. The participation of the City in TML-IRP is
limited to payment of premiums. The City has not had any significant reduction in insurance coverage, and the
amounts of insurance settlements have not exceeded insurance coverage for any of the last three years.
The City also provides Workers' Compensation insurance on its employees through TML-Workers'
Compensation Fund. Workers' Compensation premiums are subject to change when audited by TML Workers'
Compensation Fund. At fiscal year-end September 30, 2016, the City believed the amounts paid on Workers'
Compensation would not change significantly from the amounts recorded.
70
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 13-Capital Lease
The City has a 20-year agreement to lease a facility to the University of Houston Clear Lake (UHCL), which
commenced in July 2010. Rent or lease payments are broken into two parts, debt service and operating. For
accounting purposes the City has classified the lease as a direct financing lease. Because this lease is recorded in
a governmental fund, the receivable is deferred and the distinction between a sales and direct financing lease is
not relevant at the fund level.
UHCL has an option to purchase the facility upon the commencement date of July 2010 until the 61' day
preceding the 20th anniversary of the commencement date.
The lease payments related to debt service to be received coincide with debt service payments the City is required
to make on a bond that matures on March 1,2029.At September 30, 2016, the future minimum debt service lease
payments to be received under the lease are as follows:
Fiscal year ending
September 30, Payment
2017 $ 838,710
2018 815,232
2019 794,890
2020 771,557
2021 757,131
2022-2026 3,469,118
2027-2029 1,810,033
Total $ 9,256,671
Note 14-Operating Lease
The City has a five-year agreement to lease a portion of the UHCL facility to the Pearland Economic
Development Corporation which commenced in July 2010. For accounting purposes the City has classified the
lease as an operating lease. The agreement calls for up to three additional five-year terms for a total of 20 years.
The rent/lease payments are broken into two parts, debt service and operating.
The debt service lease payments to be received coincide with debt service payments the City is required to make
on a bond that matures on March 1, 2029. At September 30, 2016, the future minimum debt service lease
payments to be received under the lease are as follows:
Fiscal year ending
September 30, Payment
2017 $ 103,055
2018 100,170
2019 97,671
2020 94,804
2021 93,031
2022-2026 426,263
2027-2029 222,582
Total $ 1,137,576
71
CITY OF PEARLAND,TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 15-Subsequent Events
Water/Sewer Rate Increase
On September 19, 2016, City Council approved increases in the City's water/sewer rates, pursuant to the City's
water/sewer rate model and fiscal year 2017 adopted budget. The rate increases were necessary to support the
operations of the water/sewer fund, a self-supporting fund,in order to cover all costs of the system including debt,
capital, bond coverage, and cash reserves. The rate increases are anticipated to generate a 15.6% increase in
revenues of$5.8 million. The rate increases were effective with October 2016 consumption.
Tax Increment Contract Revenue Bonds,Series 2016
On November 15, 2016, the Development Authority issued $12,320,000 in Tax Increment Contract Revenue
Bonds, Series 2016 to reimburse the developer for infrastructure in the City's Tax Increment Reinvestment Zone
#2,better known as Shadow Creek Ranch.
Permanent Improvement Refunding Bonds,Series 2016B
On December 27, 2016, City Council issued $29,840,000 in Permanent Improvement Refunding Bonds, Series
2016B to refund certain outstanding obligations of the City. Pricing occurred on November 28, 2016 and the City
refunded$32,225,000 in existing debt. The refunding generated a gross savings of$3.5 million and a net present
value savings of$2.8 million. Annual savings of approximately$185,500 is seen over 15 years.
72
Required Supplementary Information
73
CITY OF PEARLAND,TEXAS
GENERAL FUND
SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN
FUND BALANCES-BUDGET AND ACTUAL
For the year ended September 30,2016
Variance with
Final Budget-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues
Property taxes $ 14,190,297 $ 14,292,773 $ 14,607,848 $ 315,075
Sales and use taxes 20,594,329 19,746,556 20,013,626 267,070
Franchise fees 7,003,454 6,770,450 6,919,239 148,789
Licenses and permits 4,046,589 4,912,395 5,677,439 765,044
Fees and forfeitures 2,919,100 2,899,600 2,802,425 (97,175)
Charges for services 15,956,697 15,569,827 14,853,316 (716,511)
Investment earnings 108,000 100,000 248,098 148,098
Other 624,214 2,013,113 2,118,327 105,214
Total Revenues 65,442,680 66,304,714 67,240,318 935,604 '
Expenditures
Current:
General government 10,411,505 11,443,935 10,099,131 1,344,804
Public safety 36,114,430 36,880,087 36,579,470 300,617
Public works 11,219,564 12,231,472 10,997,992 1,233,480
Community services 3,673,782 3,858,262 3,826,274 31,988
Parks and recreation 6,691,231 6,566,901 6,348,273 218,628
Debt Service:
Principal 381,750 381,750 443,252 (61,502)
Interest and other charges 57,108 57,108 36,931 20,177
Capital outlay 3,361,455 4,241,517 2,799,304 1,442,213
Total Expenditures 71,910,825 75,661,032 71,130,627 4,530,405
Excess(deficiency)of revenues
over expenditures (6,468,145) (9,356,318) (3,890,309) 5,466,009
Other Financing Sources(Uses)
Proceeds from capital leases 900,000 1,800,000 1,917,854 117,854
Transfers in 3,441,391 3,166,622 4,111,521 944,899
Transfers out (1,354,768) (2,554,768) (2,573,817) (19,049)
Total Other Financing Sources(Uses) 2,986,623 2,411,854 3,455,558 1,043,704
Net change in fund balances (3,481,522) (6,944,464) (434,751) 6,509,713
Fund balances,beginning 21,354,237 21,354,237 21,354,237
Fund balances,ending $ 17,872,715 $ 14,409,773 $ 20,919,486 $ 6,509,713
•
•
74
CITY OF PEARLAND,TEXAS
NOTES TO REQUIRED SUPPLEMENTARY BUDGET INFORMATION
Budgetary Compliance
The City has complied with all material budget requirements for the year ended September 30,2016.
Annual appropriated budgets are adopted for the General, Special Revenue and Debt Service Funds,using the same
basis of accounting as for financial reporting. All annual appropriations lapse at fiscal year-end. Project length
budgets are adopted for the Capital Project Funds. The City, for management control, approves a financial plan for
the Enterprise Fund. City Council approves the annual budget for the Pearland Economic Development Corporation,
which is included in the City's financial reporting entity.
Expenditures may not legally exceed budgeted appropriations at the fund level(i.e. General Fund,Debt Service Fund,
etc.). Expenditure requests,which would require an increase in total budgeted appropriations, must be approved by
City Council through a formal budget amendment. At any time in the fiscal year, the Council may make
emergency appropriations to meet a pressing need for public expenditure in order to protect the public health,
safety, or welfare. The Council has the power to transfer any unencumbered funds allocated by the budget from one
activity, function, or department, to another activity, function, or department, to re-estimate revenues and
expenditures,and to amend the budget.
Because City Council adopts the budget at the fund level, management has the authority to transfer available funds
allocated by the budget from one function/department or activity to another function or activity within the same
department.In cooperation with the directors and department heads of the City,the Budget Officer,the Director of
Finance and the City Manager prepare an annual budget for the General Fund, Special Revenue Funds and Debt
Service Fund for the ensuing fiscal year, in a form and style as deemed desirable by the City Manager. The City
Manager shall submit to the Council, for its review, consideration, and revision, both a letter describing the
proposed new budget, as well as a balanced budget for the forthcoming fiscal year, between 60 (sixty) and 90
(ninety) days prior to the beginning of the fiscal year. The budget, as adopted, must set forth the appropriations for
services, functions, and activities of the various City departments and agencies, and shall meet all fund
requirements provided by law and required by bond covenants. Capital projects are budgeted on a project-length
basis.
Amounts reported in the accompanying financial statements represent the budgeted amount with all supplemental
appropriations.
75
CITY OF PEARLAND,TEXAS
REQUIRED PENSION SYSTEM SUPPLEMENTARY INFORMATION
September 30,2016
TEXAS MUNICIPAL RETIREMENT SYSTEM(UNAUDITED)
Schedule of Changes in Net Pension Liability and Related Ratios
Last Two Measurement Years
2015 2014
Total pension liability
Service cost $ 6,035,636 $ 5,118,873
Interest 7,679,417 7,010,813
Changes of benefit terms
Difference between expected and actual experience 846,833 241,450
Change in assumptions (304,820)
Benefit payments, including refunds of employee contributions (3,808,062) (2,729,973)
Net change in total pension liability 10,449,004 9,641,163
Total pension liability-beginning 108,601,188 98,960,025
Total pension liability-ending(a) $ 119,050,192 $ 108,601,188
Plan fiduciary net position:
Contributions- employer $ 4,786,602 $ 4,339,785
Contributions-employee 2,498,961 2,355,095
Net investment income 135,758 4,766,828
Benefit payments,including refunds of employee contributions (3,808,062) (2,729,973)
Administrative expense (82,673) (49,756)
Other (4,082) (4,091)
Net change in plan fiduciary net position 3,526,504 8,677,888
Plan fiduciary net position-beginning 91,984,661 83,306,773
Plan fiduciary net position-ending(b) 95,511,165 91,984,661
Net pension liability-ending(a)-(b) $ 23,539,027 a $ 16,616,527
Plan fiduciary net position as a
percentage of total pension liability 80.23% 84.70%
Covered employee payroll $ 35,545,557 $ 33,615,923
Net pension liability as a percentage
of covered employee payroll 66.22% 49.43%
Amounts presented are for each measurement year,which end the preceding December 31 of
prospectively in accordance
with GASB 68.
Ten years of data should be presented in this schedule but data was unavailable prior to 2014.
76
CITY OF PEARLAND,TEXAS
REQUIRED PENSION SYSTEM SUPPLEMENTARY INFORMATION
September 30,2016
TEXAS MUNICIPAL RETIREMENT SYSTEM(UNAUDITED)
Schedule of Contributions
Last Ten Fiscal Years
2016 2015 2014 2013 2012
Actuarially determined contribution $ 5,295,359 $ 4,600,419 $ 4,311,811 $ 3,780,847 $ 3,518,289
Contribution in relation of the actuarially
determined contribution $ 5,295,359 $ 4,600,419 $ 4,311,811 $ 3,780,847 $ 3,518,289
Contribution deficiency(excess) - - - -
Covered employee payroll $ 39,566,838 $ 34,650,598 $ 30,580,987 $ 28,876,260 $ 27,756,555
Contributions as a percentage of covered
employee payroll 13.4% 13.3% 14.1% 13.1% 12.7%
2011 2010 2009 2008 2007
Actuarially determined contribution $ 3,302,952 $ 2,995,119 $ 2,550,976 $ 2,331,353 $ 1,907,419
Contribution in relation of the actuarially
determined contribution $ 3,302,952 $ 2,995,119 $ 2,550,976 $ 2,331,353 $ 1,907,419
Contribution deficiency(excess) - - - -
Covered employee payroll $ 26,871,670 $ 25,519,548 $ 25,135,418 $ 19,967,051 $ 16,985,950
Contributions as a percentage of covered
employee payroll 12.3% 11.7% 10.1% 11.7% 11.2%
NOTES TO REQUIRED PENSION SYSTEM SUPPLEMENTARY INFORMATION
Valuation Date:
Actuarial determined contribution rates are calculated as of December 31 st each year and become effective in
January, 12 months and a day later.
Methods and Assumptions Used to Determine Contribution Rates:
Actuarial Cost Method: Entry Age Normal
Amortization Method: Level Percentage of Payroll,Closed
Remaining Amortization Period: 30 years
Asset Valuation Method: 10 Year smoothed market; 15% soft corridor
Inflation: 2.5%
Salary Increases: 3.50%to 10.00% including inflation
Investment Rate of Return: 6.75%
Retirement Age: Experience-based table of rates that are specific to the City's plan
of benefits.Last updated for the 2015 valuation pursuant to an
experience study of the period 2010—2014.
Mortality: RP2000 Combined Mortality Table with Blue Collar Adjustment
with male rates multiplied by 109%and female rates multiplied by 103%
and projected on a fully generational basis with scale BB.
Other Information:
There were no benefit changes during the year.
77
CITY OF PEARLAND,TEXAS
REQUIRED OTHER POST RETIREMENT BENEFIT SUPPLEMENTARY INFORMATION
September 30,2016
Schedule of Funding Progress
Unfunded
Actuarial (UAAL)as a
Actuarial Actuarial Accrued Percentage of
Valuation Date Actuarial Accrued Percentage Liability Annual Covered Covered
October 1, Value of Assets Liabilities Funded (UAAL) Payroll Payroll
2014 $ $ 10,328,201 0% $ 10,328,201 $ 33,615,923 31%
2012 8,339,937 0% 8,339,937 28,876,260 29%
2010 6,994,465 0% 6,994,465 26,871,670 26%
NOTES TO REQUIRED OTHER POST RETIREMENT BENEFIT SUPPLEMENTARY
INFORMATION:
While retirees get the benefit of an overall employee blended rate for the Other Post-Employment Benefit
Obligation, benefits are funded on a pay-as-you go basis via premiums paid by the retirees and to be paid by
future retirees. Therefore, the City does not pay for retiree health insurance directly and there is an implicit
subsidy due to the blended rate paid by the retirees. Thus, there is no direct liability due from the City as it does
not pay any portion of the retiree's costs.Actuarial valuations are conducted every two years.
Trend information is designed to provide information about the progress made in accumulating sufficient assets to
pay benefits when due.
78
Other Supplementary Information
79
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80
Combining and Individual Fund
Statements and Schedules
81
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82
CITY OF PEARLAND, TEXAS
NON-MAJOR GOVERNMENTAL FUNDS
To account for the proceeds of specific revenue sources that, are legally restricted to expenditures for specific
purposes.
Hotel/Motel Tax Fund-A fund created to account for hotel/motel occupancy tax revenue.
Court Security Fund-A fund created to account for the receipt and expenditure of revenues from court fines for
court security.
City-Wide Donation Fund - A fund created to account for miscellaneous donations for all city departments
except parks.
Court Technology Fund- This fund is used to account for the receipt and expenditure of revenues from court
fines for court technology.
Street Assessments Fund—A fund created to account for the revenue and expenditure of street assessments as
approved by City Council for a designated street(s).
Park Donation Fund - A fund used to account for park donations for park special events and development of
parks. This fund also includes funds from tree trust donations.
Police Seizure Fund-A fund created to account for state and federal seizure funds which are used solely for law
enforcement purposes.
•
" Park and Recreation Development Fund-A fund created to account for the receipt and expenditure of payment
in lieu of parkland for the development of parks.
Sidewalk Fund-A fund created to account for resources designated for sidewalks.
Grant Fund- A fund created to account for revenues and expenditures associated with federal, state, and local
grants.
Traffic Impact Improvement Fund - A fund created to account for resources and expenditures from traffic
impact analysis.
Juvenile Management Fund-A fund created to account for receipt and expenditure of revenues from court fines
for juvenile case manager.
Pearland Economic Development Corporation Fund-A fund used to account for the revenues and expenditures
associated with the half-cent sales tax for economic development approved by the voters in 1995.Use of funds are
governed by State Law.
Regional Detention Fund-A fund created to account for regional detention development.
Educational TV Fund — A fund created to account for the revenues and expenditures associated with the
purchase of equipment for public-access television broadcasting under rules set forth by the Federal
Communications Commission(FCC).
University of Houston (U of H) Fund - A fund created to account for lease revenues and the operating
expenditures related to the University of Houston Clear Lake-Pearland Campus built by the City and leased to the
University of Houston Clear Lake and the Pearland Economic Development Corporation.
83
CITY OF PEARLAND,TEXAS
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
September 30,2016
Hotel/Motel Court City-Wide Court
Tax Security Donation Technology
Assets
Cash and cash equivalents $ 2,927,392 $ 30,201 $ 68,379 $ 19,931
Investments 1,006,460
Receivables (net of allowance
for uncollectibles) 325,223
Prepaid items
Total Assets $ 4,259,075 $ 30,201 $ 68,379 $ 19,931
Liabilities
Accounts payable $ 54,178 $ 960 $ $ 22
Accrued expenditures 10,642
Deposits
Due to other funds
Total Liabilities 64,820 960 22
Deferred Inflows of Resources
Unavailable revenue
Total Deferred Inflows
of Resources
Fund Balance
Restricted for:
Community development
programs 4,194,255 29,241 3,518
Public safety 64,861 19,909
Capital improvements
Economic development
Total Fund Balances 4,194,255 29,241 68,379 19,909
Total Liabilities, Deferred
Inflows of Resources,
and Fund Balances $ 4,259,075 $ 30,201 $ 68,379 $ 19,931
84
Page 1 of 2
Park and
Street Park Recreation
Assessments Donation Police Seizure Development
$ $ 131,108 $ 238,058 $ 693,350
501,380
1,429,570 3,871 41
$ 1,429,570 $ 131,108 $ 241,929 $ 1,194,771
$ $ 308 $ 6,750 $
308 6,750
1,429,570
1,429,570
130,800
235,179
1,194,771
130,800 235,179 1,194,771
$ 1,429,570 $ 131,108 $ 241,929 $ 1,194,771
85
CITY OF PEARLAND,TEXAS
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
September 30,2016
Traffic Impact Juvenile
Sidewalk Grant Improvement Management
Assets
Cash and cash equivalents $ 17,507 $ $ 739,672 $ 22,471
Investments
Receivables(net of allowance
for uncollectibles) 192,759
Prepaid items
Total Assets $ 17,507 $ 192,759 $ 739,672 $ 22,471
Liabilities
Accounts payable $ $ 81,280 $ 143,548 $ 742
Accrued expenditures
Deposits
Due to other funds. 53,75,7
Total Liabilities 135,037 143,548 742
Deferred Inflows of Resources
Unavailable revenue
Total Deferred Inflows
of Resources
Fund Balance
Restricted for:
Community development
programs 57,722
Public safety 21,729
Capital improvements 17,507 596,124
Economic development
Total Fund Balances 17,507 57,722 596,124 21,729
Total Liabilities,Deferred
Inflows of Resources,
and Fund Balances $ 17,507 $ 192,759 $ 739,672 $ 22,471
86
Page 2 of 2
Pearland
Economic Total Non-major
Development Regional Educational Governmental
Corporation Detention TV U of H Funds
$ 8,960,294 $ $ 847,565 $ 288,886 $ 14,984,814
9,534,680 11,042,520
3,119,317 40,684 25,659 5,137,124
5,980 5,980
$ 21,620,271 $ $ 888,249 $ 314,545 $ 31,170,438
$ 37,011 $ $ 647 $ 1,443 $ 326,889
73,423 27,301 111,366
78,156 78,156
53,757
188,590 647 28,744 570,168
1,429,570 2,859,140
1,429,570 2,859,140
887,602 285,801 5,588,939
341,678
1,808,402
20,002,111 20,002,111
20,002,111 887,602 285,801 27,741,130
$ 21,620,271 $ $ 888,249 $ 314,545 $ 31,170,438
87
CITY OF PEARLAND,TEXAS
COMBINING STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES
NON-MAJOR GOVERNMENTAL FUNDS
For the Year Ended September 30,2016
Hotel/Motel Court City-Wide Court
Tax Security Donation Technology
Revenues
Sales and use taxes $ 1,409,044 $ $ $
Franchise fees
Fines and forfeitures 47,968 52,628
Charges for services
Investment earnings 30,509 47 59 12
Intergovernmental
Other 12,543 30,060
Total Revenues 1,452,096 48,015 30,119 52,640
Expenditures
Current:
General government 947,947
Public safety 8,904
Public works
Community services 87,723 64,587
Parks and recreation
Economic development
Debt Service:
Principal
Interest and other charges
Capital outlay 12,960
Total Expenditures 947,947 87,723 21,864 64,587
Excess(deficiency)of
revenues over expenditures 504,149 (39,708) 8,255 (11,947)
Other Financing
Sources(Uses)
Refunding debt
Payments to refunding escrow
Transfers in
Transfers out (772)
Total Other Financing
Sources(Uses) (772)
Net change in fund balances 503,377 (39,708) 8,255 (11,947)
Fund balances-beginning 3,690,878 68,949 60,124 31,856
Fund balances-ending $ 4,194,255 $ 29,241 $ 68,379 $ 19,909
88
Page 1 of 2
Park and
Street Park Recreation
Assessments Donation Police Seizure Development
$ $ $ $
44,234 110 258 10,133
475,757 133,669 60,217 174,432
519,991 133,779 60,475 184,565
519,991
22,769
107,863 2,000
68,000 27,434
519,991 107,863 90,769 29,434
25,916 (30,294) 155,131
(196,000)
(196,000)
25,916 (30,294) (40,869)
104,884 265,473 1,235,640
$ 130,800 $ 235,179 $ 1,194,771
89
CITY OF PEARLAND,TEXAS
COMBINING STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES
NON-MAJOR GOVERNMENTAL FUNDS
For the Year Ended September 30,2016
Traffic Impact Juvenile
Sidewalk Grant Improvement Management
Revenues
Sales and use taxes $ $ $ $
Franchise fees
Fines and forfeitures 28,140
Charges for services
Investment earnings 16 47 687 30
Intergovernmental 382,259
Other 28,509
Total Revenues 16 382,306 29,196 28,170
Expenditures
Current:
General government 28,829
Public safety 206,608
Public works 143,548
Community services 132,337 46,088
Parks and recreation
Economic development
Debt Service:
Principal
Interest and other charges
Capital outlay 26,064
Total Expenditures 393,838 143,548 46,088
Excess(deficiency)of
revenues over expenditures 16 (11,532) (114,352) (17,918)
Other Financing
Sources(Uses)
Refunding debt
Payments to refunding escrow
Transfers in
Transfers out
Total Other Financing
Sources (Uses)
Net change in fund balances 16 (11,532) (114,352) (17,918)
Fund balances-beginning 17,491 69,254 710,476 39,647
Fund balances-ending $ 17,507 $ 57,722 $ 596,124 $ 21,729
90
Page 2 of 2
Pearland
Economic Total Non-major
Development Regional Educational Governmental
Corporation Detention TV U of H Funds
$ 9,870,744 $ $ $ $ 11,279,788
309,126 309,126
128,736
459,996 459,996
143,841 87 719 273 231,062
487,757 224,971 1,094,987
263,319 171,425 1,349,931
11,225,657 171,512 309,845 225,244 14,853,626
1,496,767
238,281
281,805 425,353
137,472 468,207
109,863
2,953,681 2,953,681
720,000 720,000
775,148 775,148
1,047,554 22,876 1,204,888
5,496,383 160,348 281,805 8,392,188
5,729,274 171,512 149,497 (56,561) 6,461,438
14,640,000 14,640,000
(14,559,773) (14,559,773)
93,913 93,913
(3,987,325) (171,512) (20,250) (4,375,859)
(3,907,098) (171,512) (20,250) 93,913 (4,201,719)
1,822,176 129,247 37,352 2,259,719
18,179,935 758,355 248,449 25,481,411
$ 20,002,111 $ $ 887,602 $ 285,801 $ 27,741,130
91
CITY OF PEARLAND,TEXAS
MAJOR GOVERNMENTAL FUND-DEBT SERVICE FUND
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
For the Year Ended September 30,2016
with comparative actual totals for the year ended September 30,2015
2016
Variance
Positive/
Final Budget Actual (Negative) 2015
Revenues
Property taxes $ 31,045,687 $ 31,366,717 $ 321,030 $ 28,757,970
Investment earnings 55,106 97,444 42,338 47,779
Intergovernmental 653,322
Miscellaneous 1,165,760 1,168,556 2,796 115,393
Total Revenues 32,266,553 32,632,717 366,164 29,574,464
Expenditures
Debt Service:
Principal 13,409,268 13,407,950 1,318 12,389,61.2
Interest and other charges 12,302,212 12,297,281 4,931 12,978,019
Intergovernmental .5,460,761 4,847,104 613,657 4,792,379
Total Expenditures 31,172,241 30,552,335 619,906 30,160,010
Excess(deficiency) of revenues
over expenditures 1,094,312 2,080,382 986,070 (585,546)
Other Financing Sources (Uses)
Proceeds from long-term debt 27,080,000 27,080,000 47,165,000
Premium on general obligation debt 2,245,323 2,245,323 7,608,103
Payments to refunding escrow agent (29,840,000) (28,967,231) 872,769 (54,303,290)
Transfers in 797,199 804,331 7,132 613,411
Total Other Financing Sources(Uses) 282,522 1,162,423 879,901 1,083,224
Net change in fund balance 1,376,834 3,242,805 1,865,971 497,678
Fund Balances-Beginning 5,033,615 5,033,615 4,535,937
Fund Balances-Ending $ 6,410,449 $ 8,276,420 $ 1,865,971 $ . 5,033,615
92
CITY OF PEARLAND,TEXAS
SPECIAL REVENUE FUND-HOTEL/MOTEL TAX
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
For the Year Ended September 30, 2016
with comparative actual totals for the year ended September 30, 2015
2016
Variance
Positive/
Final Budget Actual (Negative) 2015
Revenues
Sales and use taxes $ 1,525,233 $ 1,409,044 $ (116,189) $ 1,492,169
Investment earnings 2,000 30,509 28,509 11,348
Other 12,543 12,543 7,506
Total Revenues 1,527,233 1,452,096 (75,137) 1,511,023
Expenditures
Current:
General government 981,836 947,947 33,889 817,297
Total Expenditures 981,836 947,947 33,889 817,297
Excess(deficiency)of revenues
over expenditures 545,397 504,149 (41,248) 693,726
Other Financing Sources (Uses)
Transfers out (772) (772) (1,316)
Net change in fund balance 544,625 503,377 (41,248) 692,410
Fund Balances-Beginning 3,690,878 3,690,878 2,998,468
Fund Balances-Ending $ 4,235,503 $ 4,194,255 $ (41,248) $ 3,690,878
93
CITY OF PEARLAND,TEXAS
SPECIAL REVENUE FUND-COURT SECURITY
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
For the Year Ended September 30,2016
with comparative actual totals for the year ended September 30,2015
2016
Variance
Positive/
Final Budget Actual (Negative) 2015
Revenues
Fines and forfeitures $ 53,000 $ 47,968 $ (5,032) $ 53,104
Investment earnings 62 47 (15) 110
Total Revenues 53,062 48,015 (5,047) 53,214
Expenditures
Current:
Community services 105,807 87,723 18,084 101,724
Total Expenditures 105,807 87,723 18,084 101,724
Net change in fund balance (52,745) (39,708) 13,037 (48,510)
Fund Balances-Beginning 68,949 68,949 117,459
Fund Balances-Ending $ 16,204 $ 29,241 $ 13,037 $ 68,949
94
CITY OF PEARLAND,TEXAS
SPECIAL REVENUE FUND-CITY-WIDE DONATION
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
For the Year Ended September 30,2016
with comparative actual totals for the year ended September 30,2015
2016
Variance
Positive/
Final Budget Actual (Negative) 2015
Revenues
Investment earnings $ 60 $ 59 $ (1) $ 58
Other income 22,300 30,060 7,760 30,796
Total Revenues 22,360 30,119 7,759 30,854
Expenditures
Current:
Public safety 35,478 8,904 26,574 19,897
Capital outlay 12,960 12,960 500
Total Expenditures 48,438 21,864 26,574 20,397
Excess(deficiency)of revenues
over expenditures (26,078) 8,255 34,333 10,457
Net change in fund balance (26,078) 8,255 34,333 10,457
Fund Balances-Beginning 60,124 60,124 49,667
Fund Balances-Ending $ 34,046 $ 68,379 $ 34,333 $ 60,124
95
CITY OF PEARLAND,TEXAS
SPECIAL REVENUE FUND-COURT TECHNOLOGY
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
For the Year Ended September 30,2016
with comparative actual totals for the year ended September 30,2015
2016
Variance
Positive/
Final Budget Actual (Negative) 2015
Revenues
Fines and forfeitures $ 60,500 $ 52,628 $ (7,872) $ 56,174
Investment earnings 13 12 (1) 26
Total Revenues 60,513 52,640 (7,873) 56,200
Expenditures
Current:
General government 49,656
Community services 76,394 64,587 11,807 23,121
Total Expenditures 76,394 64,587 11,807 72,777
Net change in fund balance (15,881) (11,947) 3,934 (16,577)
Fund Balances -Beginning 31,856 31,856 48,433
Fund Balances -Ending $ 15,975 $ 19,909 $ 3,934 $ 31,856
96
CITY OF PEARLAND,TEXAS
SPECIAL REVENUE FUND-STREET ASSESSMENTS
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
For the Year Ended September 30,2016
with comparative actual totals for the year ended September 30,2015
2016
Variance
Positive/
Final Budget Actual (Negative) 2015
Revenues
Investment earnings $ 40,157 $ 44,234 $ 4,077 $
Other 475,757 475,757 759,732
Total Revenues 515,914 519,991 4,077 759,732
Expenditures
Current:
General government 515,914 519,991 (4,077) 759,732
Total Expenditures 515,914 519,991 (4,077) 759,732
Net change in fund balance
Fund Balances-Beginning
Fund Balances-Ending $ $ $ $
97
CITY OF PEARLAND,TEXAS
SPECIAL REVENUE FUND-PARK DONATION
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
For the Year Ended September 30,2016
with comparative actual totals for the year ended September 30,2015
2016
Variance
Positive/
Final Budget Actual (Negative) 2015
Revenues
Investment earnings $ 108 $ 110 $ 2 $ 170
Other 101,000 133,669 32,669 131,755
Total Revenues 101,108 133,779 32,671 131,925
Expenditures
Current:
Parks and recreation 106,000 107,863 (1,863) 133,188
Capital outlay 31,092
Total Expenditures 106,000 107,863 (1,863) 164,280
Excess (deficiency) of revenues
over expenditures (4,892) 25,916 30,808 (32,355)
Other Financing Sources (Uses)
Transfers out (31,100)
Net change in fund balance (4,892) 25,916 30,808 (63,455)
Fund Balances-Beginning 104,884 104,884 168,339
Fund Balances-Ending $ 99,992 $ 130,800 $ 30,808 $ 104,884
98
CITY OF PEARLAND, TEXAS
SPECIAL REVENUE FUND-POLICE SEIZURE
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
For the Year Ended September 30,2016
with comparative actual totals for the year ended September 30,2015
2016
Variance
Positive/
Final Budget Actual (Negative) 2015
Revenues
Investment earnings $ 325 $ 258 $ (67) $ 287
Other 48,464 60,217 11,753 39,868
Total Revenues 48,789 60,475 11,686 40,155
Expenditures
Current:
Public safety 35,000 22,769 12,231 16,424
Capital outlay 68,000 68,000
Total Expenditures 103,000 90,769 12,231 16,424
Net change in fund balance (54,211) (30,294) 23,917 23,731
Fund Balances-Beginning 265,473 265,473 241,742
Fund Balances-Ending $ 211,262 $ 235,179 $ 23,917 $ 265,473
99
CITY OF PEARLAND, TEXAS
SPECIAL REVENUE FUND-PARK AND RECREATION DEVELOPMENT
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
For the Year Ended September 30,2016
with comparative actual totals for the year ended September 30,2015
2016
Variance
Positive/
Final Budget Actual (Negative) 2015
Revenues
Investment earnings $ 3,550 $ 10,133 $ 6,583 $ 3,216
Other 100,932 174,432 73,500 344,274
Total Revenues 104,482 184,565 80,083 347,490
Expenditures
Current:
Parks and recreation 2,000 (2,000)
Capital outlay 247,986 27,434 220,552
Total Expenditures 247,986 29,434 218,552
Excess (deficiency)of
revenues over expenditures (143,504) 155,131 298,635 347,490
Other Financing Sources (Uses)
Transfers out (196,000) (196,000) (100,000)
Total Other Financing
Sources(Uses) (196,000) (196,000) (100,000)
Net change in fund balance (143,504) (40,869) 102,635 247,490
Fund Balances-Beginning 1,235,640 1,235,640 988,150
Fund Balances-Ending $ 1,092,136 $ 1,194,771 $ 102,635 $ 1,235,640
•
100
CITY OF PEARLAND, TEXAS
SPECIAL REVENUE FUND-SIDEWALK
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
For the Year Ended September 30,2016
with comparative actual totals for the year ended September 30,2015
2016
Variance
Positive/
Final Budget Actual (Negative) 2015
Revenues
Investment earnings $ 18 $ 16 $ (2) $ 236
Total Revenues 18 16 (2) 236
Expenditures
Current:
Public works 8,520
Total Expenditures 8,520
Excess (deficiency) of
revenues over expenditures 18 16 (2) (8,284)
Other Financing Sources (Uses)
Transfers out (217,224)
Total Other Financing
Sources(Uses) (217,224)
Net change in fund balance 18 16 (2) (225,508)
Fund Balances-Beginning 17,491 17,491 242,999
Fund Balances-Ending $ 17,509 $ 17,507 $ (2) $ 17,491
101
•
CITY OF PEARLAND,TEXAS
SPECIAL REVENUE FUND-GRANT
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
For the Year Ended September 30,2016
with comparative actual totals for the year ended September 30,2015 •
2016
Variance
Positive/
Final Budget Actual (Negative) 2015
Revenues
Investment earnings $ $ 47 $ 47 $ 37
Intergovernmental 1,684,224 382,259 (1,301,965) 405,083
Total Revenues 1,684,224 382,306 (1,301,918) 405,120
Expenditures
Current:
General government 28,829 (28,829)
Public safety 207,879 206,608 1,271 192,716
Community service 619,295 132,337 486,958 94,302
Parks and recreation 11,072
Capital outlay 155,355 26,064 129,291 107,278
Total Expenditures 982,529 393,838 588,691 405,368
Excess (deficiency) of
revenues over expenditures 701,695 (11,532) (713,227) (248)
Other Financing Sources (Uses)
Transfers in
Transfers out (760,885) 760,885
Total other financing
sources (uses) (760,885) 760,885
Net change in fund balance (59,190) (11,532) 47,658 (248)
Fund Balances-Beginning 69,254 69,254 69,502
Fund Balances -Ending $ 10,064 $ 57,722 $ 47,658 $ 69,254
102
CITY OF PEARLAND,TEXAS
SPECIAL REVENUE FUND-TRAFFIC IMPACT IMPROVEMENT
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
For the Year Ended September 30,2016
with comparative actual totals for the year ended September 30,2015
2016
Variance
Positive/
Final Budget Actual (Negative) 2015
Revenues
Investment earnings $ 2,500 $ 687 $ (1,813) $ 3,770
Other 3,200 28,509 25,309 34,188
Total Revenues 5,700 29,196 23,496 37,958
Expenditures
Current:
Public works 143,548 143,548
Total Expenditures 143,548 _ 143,548
Excess (deficiency) of revenues
over expenditures (137,848) (114,352) 23,496 37,958
Other Financing Sources/(Uses)
Transfers out (44,800) (44,800) _ (91)
Net change in fund balance (182,648) (114,352) (21,304) 37,867
Fund Balances-Beginning 710,476 710,476 672,609
Fund Balances-Ending $ 527,828 $ 596,124 $ (21,304) $ 710,476
103
CITY OF PEARLAND,TEXAS
SPECIAL REVENUE FUND-JUVENILE MANAGEMENT
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
For the Year Ended September 30,2016
with comparative actual totals for the year ended September 30,2015
2016
Variance
Positive/
Final Budget Actual (Negative) 2015
•
Revenues
Fines and Forfeitures $ 17,600 $ 28,140 $ 10,540 $ 30,320
Investment earnings 38 30 (8) 55
Total Revenues 17,638 28,170 10,532 30,375
Expenditures
Current:
Community services 46,992 46,088 904 44,240
Total Expenditures 46,992 46,088 904 44,240
Net change in fund balance (29,354) (17,918) 11,436 (13,865)
Fund Balances-Beginning 39,647 39,647 53,512
Fund Balances -Ending $ 10,293 $ 21,729 $ 11,436 $ 39,647
104
CITY OF PEARLAND, TEXAS
SPECIAL REVENUE FUND-REGIONAL DETENTION
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
For the Year Ended September 30,2016
with comparative actual totals for the year ended September 30,2015
2016
Variance
Positive/
Final Budget Actual (Negative) 2015
Revenues
Investment earnings $ 88 $ 87 . $ (1) $
Other 171,425 171,425
Total Revenues 171,513 171,512 (1)
Expenditures
Total Expenditures
Excess(deficiency) of
revenues over expenditures 171,513 171,512 (1)
Other Financing Sources (Uses)
Transfers out (171,513) (171,512) (1)
Total Other Financing Sources (Uses) (171,513) (171,512) (1)
Net change in fund balance (2)
Fund Balances -Beginning
Fund Balances -Ending $ $ $ (2) $
105
CITY OF PEARLAND,TEXAS
SPECIAL REVENUE FUND-EDUCATIONAL TV
SCHEDULE OF REVENUES,EXPENDITURES,AND
•CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
For the Year Ended September 30,2016
with comparative actual totals for the year ended September 30,2015
2016
Variance
Positive/
Final Budget Actual (Negative) 2015
Revenues
Investment earnings $ 800 $ 719 $ (81) $ 654
Franchise taxes 307,000 309,126 2,126 307,217
Total Revenues 307,800. 309,845 2,045 307,871
Expenditures
Current:
Community services 178,825 137,472 41,353 30,094
Capital outlay 14,500 22,876 (8,376) 6,846
Total Expenditures 193,325 160,348 32,977 36,940
Revenues over(under)expenditures 114,475 149,497 35,022 270,931
Other Financing Sources (Uses)
Transfers (to)other funds (20,250) (20,250)
Total Other Financing Sources (Uses) (20,250) (20,250)
Net change in fund balance 94,225 129,247 35,022 270,931
Fund Balances-Beginning 758,355 758,355 487,424
Fund Balances-Ending $ 852,580 $ 887,602 $ 35,022 $ 758,355
106
CITY OF PEARLAND,TEXAS
SPECIAL REVENUE FUND-UOFH
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
For the Year Ended September 30,2016
with comparative actual totals for the year ended September 30,2015
2016
Variance
Positive/
Final Budget Actual (Negative) 2015
Revenues
Investment earnings $ 10,838 $ 273 $ (10,565) $ 303
Intergovernmental 238,966 224,971 (13,995) 254,368
Other 86,153
Total Revenues 249,804 225,244 (24,560) 340,824
Expenditures
Current:
Public works 336,401 281,805 54,596 340,544
Total Expenditures 336,401 281,805 54,596 _ 340,544
Excess (deficiency)of
revenues over expenditures (86,597) (56,561) 30,036 280
Other Financing Sources(Uses)
Transfers in 123,179 93,913 (29,266) 8,041
Total Other Financing Sources(Uses) 123,179 93,913 (29,266) 8,041
Net change in fund balance 36,582 7,352 770 8,321
Fund Balances-Beginning 248,449 248,449 240,128
Fund Balances-Ending $ 285,031 $ 285,801 $ 770 $ 248,449
107
CITY OF PEARLAND, TEXAS
MAJOR GOVERNMENTAL FUND-CAPITAL PROJECTS FUND
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
For the Year Ended September 30,2016
with comparative actual totals for the year ended September 30,2015
2016
Variance
Positive/
Final Budget Actual (Negative) 2015
Revenues
Investment earnings $ 64,382 $ 138,143 $ 73,761 $ 75,913
Intergovernmental 40,319,563 14,864,007 (25,455,556) 1,097,268
Other income 1,925,099 429,211 (1,495,888) 4,482,428
Total Revenues 42,309,044 15,431,361 (26,877,683) 5,655,609
Expenditures
Current:
Public works 4,443,748 1,868,429 2,575,319 924,517
Debt Service
Interest and other charges 688,000 417,215 270,785 357,492
Capital outlay 60,049,288 27,977,895 32,071,393 20,464,495
Total Expenditures 65,181,036 30,263,539 34,917,497 21,746,504
Excess(deficiency) of revenues
over expenditures (22,871,992) (14,832,178) 8,039,814 (16,090,895)
Other Financing Sources (Uses)
Issuance of debt 36,168,031 30,400,000 (5,768,031) 17,980,000
Premium on debt issued 2,305,693 2,305,693 445,228
Sale of capital assets 3,157,291
Transfers in 11,413,983 8,176,298 (3,237,685) 298,415
Transfers out (986,613) (1,017,844) (31,231) (884,669)
Total Other Financing Sources (Uses) 46,595,401 39,864,147 (6,731,254) 20,996,265
Net change in fund balance 23,723,409 25,031,969 1,308,560 4,905,370
Fund Balances -Beginning 20,520,179 20,520,179 15,614,809
Fund Balances -Ending $44,243,588 $45,552,148 $ 1,308,560 $20,520,179
108
Long-Term Debt Amortization Schedules
109
CITY OF PEARLAND,TEXAS
COMBINING SCHEDULE OF GOVERNMENTAL ACTIVITY LONG-TERM DEBT
BY MATURITY DATE
September 30,2016
Certificates of Obligation,Series 2007 Permanent Improvement and Refunding Bonds,Series
2007
Fiscal Year Principal Interest Total Principal Interest Total
2017 $ 280,000 $ 272,175 $ 552,175 $ 2,460,000 $ 1,619,356 $ 4,079,356
2018 1,005,000 238,444 1,243,444 2,220,000 1,502,356 3,722,356
2019 212,063 212,063 2,220,000 1,391,356 3,611,356
2020 212,063 212,063 3,005,000 1,268,244 4,273,244
2021 212,063 212,063 3,125,000 1,130,319 4,255,319
2022 212,063 212,063 3,250,000 986,881 4,236,881
2023 212,063 212,063 2,900,000 848,506 3,748,506
2024 212,063 212,063 3,030,000 715,081 3,745,081
2025 212,063 212,063 2,220,000 598,344 2,818,344
2026 212,063 212,063 2,225,000 501,109 2,726,109
2027 1,580,000 186,388 1,766,388 2,320,000 397,338 2,717,338
2028 1,660,000 133,738 1,793,738 1,325,000 310,769 1,635,769
2029 1,745,000 78,406 1,823,406 1,370,000 246,763 1,616,763
2030 1,540,000 25,025 1,565,025 1,500,000 178,600 1,678,600
2031 1,515,000 106,994 1,621,994
2032 1,495,000 35,506 1,530,506
2033
2034
2035
2036
2037
2038
$ 7,810,000 $ 2,630,680 $ 10,440,680 $ 36,180,000 $ 11,837,522 S 48,017,522
Certificates of Obligation,Series 2008 Permanent Improvement Bonds,Series 2008
Fiscal Year Principal Interest Total Principal Interest Total
2017 $ 160,000 $ 17,200 $ 177,200 $ 340,000 $ 485,663 S 825,663
2018 165,000 10,700 175,700 360,000 468,163 828,163
2019 185,000 3,700 188,700 405,000 449,038 854,038
2020 438,913 438,913
2021 438,913 438,913
2022 438,913 438,913
2023 438,913 438,913
2024 438,913 438,913
2025 438,913 438,913
2026 438,913 438,913
2027 438,913 438,913
2028 438,913 438,913
2029 438,913 438,913
2030 438,913 438,913
2031 4,705,000 330,109 5,035,109
2032 4,785,000 110,653 4,895,653
2033
2034
2035
2036
2037
2038 _
$ 510,000 $ 31,600 $ 541,600 $ 10,595,000 $ 6,671,669 $ 17,266,669
110
Page 1 of 4
Certificates of Obligation,Series 2009 Certificates of Obligation,Series 2009A
Fiscal Year Principal Interest Total Principal Interest Total
2017 $ 245,000 $ 325,703 $ 570,703 $ 640,000 $ 301,765 $ 941,765
2018 255,000 317,128 572,128 640,000 275,403 915,403
2019 320,000 307,565 627,565 640,000 252,560 892,560
2020 325,000 294,765 619,765 635,000 231,361 866,361
2021 340,000 281,765 621,765 640,000 210,163 850,163
2022 350,000 268,165 618,165 640,000 187,763 827,763
2023 365,000 253,815 618,815 640,000 164,403 804,403
2024 385,000 238,303 623,303 640,000 140,563 780,563
2025 400,000 221,363 621,363 635,000 116,339 751,339
2026 420,000 203,363 623,363 640,000 91,315 731,315
2027 440,000 183,938 623,938 640,000 65,715 705,715
2028 465,000 163,038 628,038 635,000 39,898 674,898
2029 485,000 139,788 624,788 640,000 13,440 653,440
2030 415,000 116,750 531,750
2031 410,000 96,000 506,000
2032 475,000 75,500 550,500
2033 505,000 51,750 556,750
2034 530,000 26,500 556,500
2035
2036
2037
2038
$ 7,130,000 $ 3,565,199 $ 10,695,199 $ 8,305,000 $ 2,090,688 $ 10,395,688
Permanent Improvement and Refunding Bonds,Series Permanent Improvement Bonds,Series 2010A
2009(Gov't Portion)
Fiscal Year Principal Interest Total Principal Interest Total
2017 $ 435,000 $ 599,267 $ 1,034,267 $ 390,000 $ 378,703 $ 768,703
2018 455,000 578,154 1,033,154 400,000 366,853 766,853
2019 590,000 557,888 1,147,888 415,000 354,628 769,628
2020 615,000 537,863 1,152,863 425,000 342,028 767,028
2021 635,000 517,075 1,152,075 440,000 329,053 769,053
2022 655,000 494,490 1,149,490 455,000 315,059 770,059
2023 680,000 470,120 1,150,120 465,000 300,109 765,109
2024 705,000 444,321 1,149,321 485,000 284,065 769,065
2025 735,000 416,953 1,151,953 500,000 265,578 765,578
2026 765,000 387,505 1,152,505 520,000 246,153 766,153
2027 795,000 356,305 1,151,305 540,000 226,603 766,603
2028 825,000 323,492 1,148,492 560,000 205,558 765,558
2029 865,000 288,415 1,153,415 585,000 182,938 767,938
2030 835,000 249,375 1,084,375 610,000 159,038 769,038
2031 945,000 204,875 1,149,875 635,000 133,344 768,344
2032 1,090,000 154,000 1,244,000 660,000 105,825 765,825
2033 1,235,000 95,875 1,330,875 690,000 77,138 767,138
2034 1,300,000 32,500 1,332,500 720,000 47,175 767,175
2035 750,000 15,938 765,938
2036
2037
2038
$ 14,160,000 S 6,708,473 $ 20,868,473 $ 10,245,000 $ 4,335,786 $ 14,580,786
111
CITY OF PEARLAND,TEXAS
COMBINING SCHEDULE OF GOVERNMENTAL ACTIVITY LONG-TERM DEBT
BY MATURITY DATE
September 30,2016 .
Permanent Improvement Bonds,Series 2010B Permanent Improvement Bonds,Series 2011
Fiscal Year Principal Interest Total Principal Interest Total
2017 $ 240,000 $ 6,300 $ 246,300 $ 165,000 $ 177,631 $ 342,631
2018 90,000 1,350 91,350 170,000 170,931 340,931
2019 175,000 164,031 339,031
2020 185,000 156,831 341,831
2021 190,000 149,331 339,331
2022 200,000 141,531 341,531
2023 205,000 134,456 339,456
2024 210,000 128,231 338,231
2025 220,000 121,506 341,506
2026 225,000 114,275 339,275
2027 235,000 106,506 341,506
2028 245,000 98,106 343,106
2029 250,000 88,819 338,819
2030 260,000 78,619 338,619
2031 275,000 67,919 342,919
2032 285,000 56,719 341,719
2033 295,000 45,119 340,119
2034 305,000 33,119 338,119
2035 320,000 20,419 340,419
2036 335,000 6,909 341,909
2037
2038
$ 330,000 $ 7,650 $ 337,650 $ 4,750,000 $ 2,061,008 $ 6,811,008
Certificates of Obligation,Series 2011 Permanent Improvement and Refunding Bonds,Series
2012(Gov't Portion)
Fiscal Year Principal Interest Total Principal Interest Total
2017 $ 205,000 $ 19,698 $ 224,698 $ 2,625,000 $ 1,388,600 S 4,013,600
2018 210,000 15,362 • 225,362 2,690,000 1,282,300 3,972,300
2019 210,000 10,973 220,973 3,210,000 1,164,300 4,374,300
2020 210,000 6,584 216,584 2,200,000 1,056,100 3,256,100
2021 210,000 2,195 212,195 2,340,000 965,300 3,305,300
2022 2,680,000 864,900 3,544,900
2023 2,840,000 754,500 3,594,500
2024 2,720,000 643,300 3,363,300
2025 4,520,000 521,100 5,041,100
2026 4,540,000 385,200 4,925,200
2027 3,035,000 271,575 3,306,575
2028 5,355,000 145,725 5,500,725
2029 2,180,000 32,700 2,212,700
2030
2031
2032
2033
2034
2035
2036
2037
2038
$ .1,045,000 $ 54,812 $ 1,099,812 $ 40,935,000 $ 9,475,600 $ 50,410,600
112
Page 2 of
BC MUD#4 Permanent Improvement Bonds,Series 2013
Unlimited Tax Bonds,Series 2011
Fiscal Year Principal Interest Total Principal Interest Total
2017 $ 130,000 $ 14,788 $ 144,788 $ 305,000 $ 351,568 S 656,568
2018 130,000 11,050 141,050 305,000 339,368 644,368
2019 130,000 6,825 136,825 320,000 326,868 646,868
2020 130,000 2,275 132,275 320,000 314,068 634,068
2021 330,000 301,068 631,068
2022 330,000 287,868 617,868
2023 340,000 274,468 614,468
2024 350,000 260,668 610,668
2025 360,000 246,468 606,468
2026 370,000 231,868 601,868
2027 370,000 217,068 587,068
2028 380,000 202,068 582,068
2029 390,000 186,424 576,424
2030 400,000 169,880 569,880
2031 410,000 152,411 562,411
2032 420,000 134,203 554,203
2033 430,000 115,288 545,288
2034 440,000 95,713 535,713
2035 450,000 75,688 525,688
2036 460,000 55,213 515,213
2037 480,000 33,763 513,763
2038 _ _ 490,000 11,331 501,331
$ 520,000 $ 34,938 $ 554,938 $ 8,450,000 $ 4,383,330 $ 12,833,330
Certificates of Obligation,Series 2013 Permanent Improvement and Refunding Bonds,Series
2014
Fiscal Year Principal Interest Total Principal Interest Total
2017 $ 85,000 $ 107,513 $ 192,513 $ 1,020,000 $ 1,630,181 $ 2,650,181
2018 85,000 104,963 189,963 1,085,000 1,603,231 2,688,231
2019 90,000 102,338 192,338 1,240,000 1,573,031 2,813,031
2020 100,000 98,988 198,988 2,310,000 1,508,281 3,818,281
2021 100,000 94,488 194,488 2,415,000 1,401,706 3,816,706
2022 100,000 89,488 189,488 2,510,000 1,284,831 3,794,831
2023 100,000 84,488 184,488 3,165,000 1,149,206 4,314,206
2024 100,000 79,488 179,488 2,710,000 1,002,331 3,712,331
2025 110,000 74,238 184,238 2,830,000 863,831 3,693,831
2026 110,000 69,288 179,288 3,055,000 716,706 3,771,706
2027 110,000 64,888 174,888 4,120,000 537,331 4,657,331
2028 110,000 60,488 170,488 3,145,000 385,191 3,530,191
2029 120,000 55,738 175,738 5,860,000 218,850 6,078,850
2030 120,000 50,563 170,563 535,000 90,950 625,950
2031 120,000 45,313 165,313 535,000 69,550 604,550
2032 120,000 40,063 160,063 535,000 48,150 583,150
2033 130,000 34,513 164,513 535,000 28,088 563,088
2034 130,000 28,663 158,663 535,000 9,363 544,363
2035 130,000 22,813 152,813
2036 140,000 16,650 156,650
2037 140,000 10,175 150,175
2038 150,000 3,469 153,469
$ 2,500,000 $ 1,338,616 $ 3,838,616 $ 38,140,000 $ 14,120,808 $ 52,260,808
113
CITY OF PEARLAND,TEXAS
COMBINING SCHEDULE OF GOVERNMENTAL ACTIVITY LONG-TERM DEBT
BY MATURITY DATE
September 30,2016
Certificates of Obligation,Series 2014 Permanent Improvement and Refunding Bonds,Series
2015
Fiscal Year Principal Interest Total Principal Interest Total
2017 $ 230,000 $ 119,119 $ 349,119 $ 320,000 $ 2,093,719 $ 2,413,719
2018 230,000 114,519 344,519 775,000 2,078,894 2,853,894
2019 230,000 109,919 339,919 2,130,000 2,035,319 4,165,319
2020 230,000 105,319 335,319 3,755,000 1,926,819 5,681,819
2021 230,000 100,719 330,719 3,890,000 1,768,019 5,658,019
2022 230,000 96,119 326,119 4,020,000 1,619,069 5,639,069
2023 230,000 90,369 320,369 4,010,000 1,462,119 5,472,119
2024 230,000 82,319 312,319 4,975,000 1,247,494 6,222,494
2025 235,000 73,019 308,019 4,540,000 1,009,619 5,549,619
2026 230,000 63,719 293,719 4,745,000 777,494 5,522,494
2027 235,000 55,594 290,594 4,155,000 554,994 4,709,994
2028 235,000 48,544 283,544 4,100,000 348,619 4,448,619
2029 230,000 41,425 271,425 3,450,000 159,869 3,609,869
2030 230,000 34,238 264,238 905,000 59,478 964,478
2031 230,000 26,906 256,906 720,000 33,638 753,638
2032 230,000 19,431 249,431 675,000 10,969 685,969
2033 230,000 11,813 241,813
2034 235,000 3,966 238,966
2035
2036
2037
2038
$ 4,160,000 $ 1,197,057 $ 5,357,057 $ 47,165,000 $ 17,186,132 $ 64,351,132
Permanent Improvement Bonds,Series 2015 Certificates of Obligation,Series 2015
Fiscal Year Principal Interest Total Principal Interest Total
2017 $ 425,000 $ 228,075 $ 653,075 $ 245,000 $ 131,450 $ 376,450
2018 425,000 219,575 644,575 245,000 126,550 371,550
2019 425,000 211,075 636,075 245,000 121,650 366,650
2020 425,000 202,575 627,575 240,000 116,800 356,800
2021 425,000 194,075 619,075 240,000 112,000 352,000
2022 425,000 185,575 610,575 240,000 106,600 346,600
2023 425,000 176,013 601,013 245,000 100,538 345,538
2024 425,000 165,388 590,388 245,000 93,800 338,800
2025 425,000 151,575 576,575 240,000 85,325 325,325
2026 425,000 134,575 559,575 245,000 75,625 320,625
2027 425,000 117,575 542,575 245,000 65,825 310,825
2028 425,000 100,575 525,575 245,000 57,250 302,250
2029 425,000 85,700 510,700 245,000 49,900 294,900
2030 420,000 73,025 493,025 240,000 42,625 282,625
2031 425,000 60,350 485,350 240,000 35,275 275,275
2032 425,000 47,600 472,600 245,000 27,697 272,697
2033 425,000 34,425 459,425 240,000 19,969 259,969
2034 425,000 20,719 445,719 240,000 12,169 252,169
2035 425,000 6,906 431,906 245,000 4,134 249,134
2036
2037
2038
$ 8,070,000 $ 2,415,376 $ 10,485,376 $ 4,615,000 S 1,385,182 $ 6,000,182
114
Page 3 of 4
Permanent Improvement and Refunding Bonds,Series Permanent Improvement and Refunding Bonds,Series
2015A 2016A
Fiscal Year Principal Interest Total Principal Interest Total
2017 $ 945,000 $ 274,425 $ 1,219,425 $ 820,000 $ 1,604,113 $ 2,424,113
2018 550,000 259,475 809,475 825,000 1,265,200 2,090,200
2019 1,990,000 224,125 2,214,125 820,000 1,248,750 2,068,750
2020 395,000 188,350 583,350 985,000 1,230,700 2,215,700
2021 410,000 176,275 586,275 1,120,000 1,209,650 2,329,650
2022 430,000 163,675 593,675 1,125,000 1,170,325 2,295,325
2023 535,000 150,538 685,538 1,135,000 1,113,825 2,248,825
2024 520,000 136,050 656,050 1,150,000 1,056,700 2,206,700
2025 540,000 120,150 660,150 1,160,000 998,950 2,158,950
2026 555,000 • 103,725 658,725 1,200,000 939,950 2,139,950
2027 580,000 86,700 666,700 1,215,000 879,575 2,094,575
2028 855,000 65,175 920,175 1,230,000 824,600 2,054,600
2029 1,745,000 26,175 1,771,175 1,960,000 770,600 2,730,600
2030 6,725,000 606,700 7,331,700
2031 4,100,000 390,200 4,490,200
2032 4,425,000 219,700 4,644,700
2033 820,000 114,800 934,800
2034 820,000 82,000 902,000
2035 820,000 49,200 869,200
2036 820,000 16,400 836,400
2037
2038
$ 10,050,000 $ 1,974,838 $ 12,024,838 $ 33,275,000 $ 15,791,938 $ 49,066,938
Certificates of Obligation,Series 2016 Pearland Economic Development Corporation
Sales Tax Revenue Refunding Bonds,Series 2016
Fiscal Year Principal Interest Total Principal Interest Total
2017 $ 700,000 $ 430,313 $ 1,130,313 $ 890,000 $ 338,786 $ 1,228,786
2018 700,000 328,850 1,028,850 905,000 324,500 1,229,500
2019 700,000 314,850 1,014,850 930,000 303,142 1,233,142
2020 700,000 300,850 1,000,850 955,000 281,194 1,236,194
2021 700,000 286,850 986,850 975,000 258,656 1,233,656
2022 700,000 272,850 972,850 1,000,000 235,646 1,235,646
2023 700,000 258,850 958,850 1,025,000 212,046 1,237,046
2024 700,000 244,850 944,850 1,055,000 187,856 1,242,856
2025 700,000 230,850 930,850 1,080,000 162,958 1,242,958
2026 700,000 216,850 916,850 1,105,000 137,470 1,242,470
2027 700,000 195,850 895,850 1,130,000 111,392 1,241,392
2028 700,000 174,850 874,850 1,165,000 84,724 1,249,724
2029 700,000 157,350 857,350 1,195,000 57,230 1,252,230
2030 700,000 136,350 836,350 1,230,000 29,028 1,259,028
2031 695,000 115,425 810,425
2032 700,000 94,500 794,500
2033 700,000 73,500 773,500
2034 700,000 52,500 752,500
2035 700,000 31,500 731,500
2036 700,000 10,500 710,500
2037
2038
$ 13,995,000 $ 3,928,288 $ 17,923,288 $ 14,640,000 $ 2,724,628 $ 17,364,628
115
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116
CITY OF PEARLAND,TEXAS
COMBINING SCHEDULE OF GOVERNMENTAL ACTIVITY LONG-TERM DEBT Page 4 of 4
BY MATURITY DATE
September 30,2016
Development Authority of Pearland Development Authority of Pearland
Tax Increment Contract Revenue Bonds,Series 2013 Tax Increment Contract Revenue Bonds,Series 2014
Fiscal Year Principal Interest Total Principal Interest Total
2017 $ 385,000 $ 300,658 $ 685,658 $ 520,000 $ 190,536 $ 710,536
2018 405,000 286,143 691,143 535,000 176,392 711,392
2019 420,000 270,875 690,875 550,000 161,840 711,840
2020 445,000 255,041 700,041 475,000 146,880 621,880
2021 465,000 238,264 703,264 490,000 133,960 623,960
2022 735,000 220,734. 955,734 505,000 120,632 625,632
2023 560,000 193,024 753,024 520,000 106,896 626,896
2024 615,000 171,912 786,912 530,000 92,752 622,752
2025 670,000 148,727 818,727 545,000 78,336 623,336
2026 725,000 123,468 848,468 560,000 63,512 623,512
2027 785,000 96,135 881,135 575,000 48,280 623,280
2028 850,000 66,541 916,541 590,000 32,640 622,640
2029 915,000 34,496 949,496 610,000 16,592 626,592
2030
2031
2032
2033
2034
2035
2036
2037
2038
$ 7,975,000 $ 2,406,018 $ 10 381,018 $ 7,005,000 $ 1,369,248 $ 8,374,248
Development Authority of Pearland
Tax Increment Contract Revenue&Refunding Bonds,
Series 2015
Fiscal Year Principal Interest Total
2017 $ 4,355,000 $ 1,691,950 $ 6,046,950
2018 4,465,000 1,572,623 6,037,623
2019 4,590,000 1,450,282 6,040,282
2020 4,395,000 1,324,516 5,719,516
2021 4,510,000 1,204,093 5,714,093
2022 4,380,000 1,080,519 5,460,519 •
2023 4,705,000 960,507 5,665,507
2024 4,800,000 831,590 5,631,590
2025 4,900,000 700,070 5,600,070
2026 5,005,000 565,810 5,570,810
2027 5,110,000 428,673 5,538,673
2028 5,215,000 288,659 5,503,659
2029 5,320,000 145,768 5,465,768
2030
2031
2032
2033
2034
2035
2036
2037
2038
$ 61,750,000 $ 12,245,060 $ 73,995,060
117
CITY OF PEARLAND,TEXAS
COMBINING SCHEDULE OF ENTERPRISE FUND LONG-TERM DEBT
BY MATURITY DATE
September 30,2016
Water&Sewer Revenue Bonds, Water&Sewer Revenue Bonds,
Series 1999 Series 2006
Fiscal Year Principal Interest Total Principal Interest Total
2017 $ 540,000 $ 105,800 $ 645,800 $ 100,000 S 434,044 $ 534,044
2018 565,000 80,960 645,960 100,000 429,744 529,744
2019 585,000 54,970 639,970 100,000 425,369 525,369
2020 610,000 28,060 638,060 100,000 420,869 520,869
2021 100,000 416,244 516,244
2022 100,000 411,619 511,619
2023 100,000 406,994 506,994
2024 100,000 402,369 502,369 .
2025 100,000 397,744 497,744
2026 1,150,000 393,119 1,543,119
2027 1,205,000 338,494 1,543,494
2028 1,265,000 278,244 1,543,244
2029 1,330,000 214,994 1,544,994
2030 1,395,000 146,831 1,541,831
2031 1,470,000 75,338 1,545,338
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
$ 2,300,000 $ 269,790 $ 2,569,790 $ 8,715,000 $ 5,192,013 $ 13,907,013
Water&Sewer Revenue Bonds, Water&Sewer Revenue Bonds,
Series 2007 Series 2008
Fiscal Year Principal Interest Total Principal Interest Total
2017 $ 950,000 $ 1,510,788 $ 2,460,788 $ 315,000 $ 615,790 $ 930,790
2018 995,000 1,458,538 2,453,538 340,000 601,615 941,615
2019 1,045,000 1,403,813 2,448,813 370,000 586,315 956,315
2020 1,095,000 1,348,950 2,443,950 395,000 569,665 964,665
2021 1,155,000 1,294,200 2,449,200 420,000 551,890 971,890
2022 1,210,000 1,236,450 2,446,450 440,000 532,990 972,990
2023 1,275,000 1,175,950 2,450,950 460,000 514,840 974,840
2024 2,295,000 1,112,200 3,407,200 490,000 495,520 985,520
2025 2,480,000 997,450 3,477,450 510,000 474,450 984,450
2026 3,120,000 873,450 3,993,450 540,000 448,950 988,950
2027 3,280,000 717,450 3,997,450 560,000 421,950 981,950
2028 3,440,000 553,450 3,993,450 595,000 393,950 988,950
2029 3,615,000 398,650 4,013,650 600,000 364,200 964,200
2030 3,795,000 272,125 4,067,125 580,000 334,200 914,200
2031 3,980,000 139,300 4,119,300 560,000 305,200 865,200
2032 1,890,000 277,200 2,167,200
2033 1,980,000 182,700 2,162,700
•
2034 2,080,000 93,600 2,173,600
2035
2036
2037
2038
2039 •
$ 33,730,000 $ 14,492,764 $ 48,222,764 $ 13,125,000 $ 7,765,025 $ 20,890,025
118
Page l of 2
Water&Sewer Revenue Bonds, Permanent Improvement and Refunding Bonds,
Series 2009 Series 2009(water/sewer portion)
Fiscal Year Principal Interest Total Principal Interest Total
2017 $ 410,000 $ 522,813. $ 932,813 $ 2,065,000 $ 143,600 $ 2,208,600
2018 420,000 508,975 928,975 2,155,000 45,988 2,200,988
2019 435,000 493,750 928,750
2020 450,000 476,350 926,350
2021 465,000 458,350 923,350
2022 485,000 438,588 923,588
2023 505,000 416,763 921,763
2024 520,000 393,406 913,406
2025 545,000 368,056 913,056
2026 570,000 340,806 910,806
2027 600,000 311,594 911,594
2028 630,000 280,844 910,844
2029 665,000 247,769 912,769
2030 700,000 212,025 912,025
2031 730,000 173,525 903,525
2032 765,000 133,375 898,375
2033 815,000 91,300 906,300
2034 845,000 46,475 891,475
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
$ 10,555,000 $ 5,914,764 $ 16,469,764 $ 4,220,000 $ 189,588 $ 4,409,588
Water&Sewer Revenue Bonds, Water&Sewer Revenue Bonds,
Series 2010A Series 2010B
Fiscal Year Principal Interest Total Principal Interest Total
2017 $ 425,000 $ 480,231 $ 905,231 $ 385,000 $ 273,194 $ 658,194
2018 440,000 467,481 907,481 405,000 261,644 666,644
2019 455,000 453,731 908,731 425,000 248,988 673,988
2020 475,000 438,944 913,944 445,000 235,175 680,175
2021 495,000 422,319 917,319 1,750,000 219,600 1,969,600
2022 515,000 402,519 917,519 1,830,000 149,600 1,979,600
2023 535,000 381,919 916,919 1,910,000 76,400 1,986,400'
2024 555,000 360,519 915,519
2025 580,000 338,319 918,319
2026 600,000 315,119 915,119
2027 625,000 291,119 916,119
2028 650,000 265,338 915,338
2029 680,000 237,713 917,713
2030 710,000 208,813 918,813
2031. 740,000 177,750 917,750
2032 755,000 144,450 899,450
2033 785,000 110,475 895,475
2034 825,000 75,150 900,150
2035 845,000 38,025 883,025
2036 -
2037
2038
2039
$ 11,690,000 S 5,609,934 $ 17,299,934 $ 7,150,000 $ 1,464,601 $ 8,614,601
119
CITY OF PEARLAND,TEXAS
COMBINING SCHEDULE OF ENTERPRISE FUND LONG-TERM DEBT
BY MATURITY DATE
September30,2016
Permanent Improvement and Refunding Bonds, Water&Sewer Revenue Bonds,
Series 2012(water/sewer portion) Series 2012
Fiscal Year Principal Interest Total Principal Interest Total
2017 $ 350,000 $ 200,400 $ 550,400 S 755,000 $ 211,155 $ 966,155
2018 360,000 186,200 546,200 765,000 196,055 961,055
2019 365,000 171,700 536,700 780,000 180,755 960,755
2020 370,000. 157,000 527,000 800,000 165,155 965,155
2021 370,000 142,200 512,200 230,000 141,155 371,155
2022 385,000 127,100 512,100 230,000 134,255 364,255
2023 395,000 111,500 506,500 240,000 127,355 367,355
2024 1,480,000 74,000 1,554,000 230,000 120,155 350,155
2025 1,480,000 22,200 1,502,200 225,000 113,255 338,255
2026 175,000 106,505 281,505
2027 180,000 101,080 281,080
2028 185,000 95,500 280,500
2029 190,000 89,488 279,488
2030 195,000 83,313 278,313
2031 200,000 76,975 276,975
2032 300,000 70,225 370,225
2033 315,000 60,100 375,100
2034 325,000 49,075 374,075
2035 335,000 37,700 372,700
2036 345,000 25,556 370,556
2037 360,000 13,050 373,050
2038
2039
2040
2041
2042
2043
2044
2045
$ 5,555,000 $ 1,192,300 $ 6,747,300 $ 7,360,000 $ 2,197,862 $ 9,557,862
Water&Sewer Revenue Bonds, Water and Sewer Revenue Bonds,
Series 2014 Series 2016A
Fiscal Year Principal Interest Total Principal Interest Total
2017 $ 210,000 $ 316,819 $ 526,819 S 445,000 $ 312,141 $ 757,141
2018 220,000 308,419 528,419 445,000 236,363 681,363
2019 230,000 299,619 529,619 445,000 223,013 668,013
2020 240,000 290,419 530,419 445,000 209,663 654,663
2021 255,000 280,819 535,819 445,000 196,313 641,313
2022 270,000 270,619 540,619 445,000 187,413 632,413
2023 280,000 259,819 539,819 440,000 178,513 618,513
2024 295,000 248,619 543,619 445,000 169,713 614,713
2025 310,000 236,819 546,819 445,000 160,813 605,813
2026 330,000 224,419 554,419 440,000 151,913 591,913
2027 345,000 211,219 556,219 445,000 134,313 579,313
2028 365,000 200,869 565,869 445,000 116,513 561,513
2029 385,000 189,919 574,919 445,000 106,500 551,500
2030 405,000 177,888 582,888 445,000 93,150 538,150
2031 425,000 164,725 589,725 440,000 79,800 519,800
2032 445,000 150,913 595,913 445,000 66,600 511,600
2033 470,000 135,894 605,894 445,000 53,250 498,250
2034 495,000 120,031 615,031 . 445,000 39,900 484,900
2035 520,000 102,706 622,706 440,000 26,550 466,550
2036 550,000 84,506 634,506 445,000 13,350 458,350
2037 575,000 65,256 640,256
2038 605,000 45,131 650,131
2039 640,000 23,200 663,200
$ 8,865,000 $ 4,408,647_ $ 13,273,647 $ 8,880,000 $ 2,755,784 $ 11,635,784
120
•
Page 2 of 2
Water and Sewer Revenue Bonds, Water and Sewer Revenue Bonds, -
Series 2016B Series 2016C
Fiscal Year Principal Interest Total Principal Interest Total
2017 S 1,235,000 $ 8,088 $ 1,243,088 $ 1,860,000 $ 338,696 S 2,198,696
2018 1,230,000 7,524 1,237,524 1,860,000 315,066 2,175,066
2019 1,230,000 7,524 1,237,524 1,860,000 315,066 2,175,066
2020 1,235,000 7,524 1,242,524 1,860,000 315,066 2,175,066
2021 1,235,000 7,524 1,242,524 1,855,000 315,066 2,170,066
2022 1,235,000 7,524 1,242,524 1,700,000 315,066 2,015,066
2023 1,235,000 7,524 1,242,524 1,700,000 315,066 2,015,066
2024 1,230,000 6,412 . 1,236,412 1,700,000 313,536 2,013,536
2025 1,235,000 3,952 1,238,952 1,700,000 310,136 2,010,136
2026 1,700,000 304,696 2,004,696
2027 1,700,000 297,386 1,997,386
2028 1,700,000 288,206 1,988,206
2029 1,700,000 278,176 1,978,176
2030 1,700,000 267,296 1,967,296
2031 1,700,000 255,396 1,955,396
2032 1,700,000 242,476 1,942,476
2033 1,700,000 228,536 1,928,536
2034 1,700,000 213,746 1,913,746
2035 1,700,000 198,106 1,898,106
2036 1,700,000 181,786 1,881,786
2037 1,700,000 164,786 1,864,786
2038 1,700,000 147,446 1,847,446
2039 1,700,000 129,766 1,829,766
2040 1,700,000 111,746 1,811,746
2041 1,700,000 93,556 1,793,556
2042 1,700,000 75,196 1,775,196 •
2043 1,700,000 56,666 1,756,666
2044 1,700,000 37,966 1,737,966
2045 1,705,000- 19,096 1,724,096
$ 11,100,000 $ 63,596 $ 11,163,596 $. 50,100,000 $ 6,444,794 S 56,544,794
121
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122
Statistical Section
(Unaudited)
123
(This page intentionally left blank)
124
Unaudited Statistical Section
This part of the City's comprehensive annual fmancial 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 government's overall financial health.
Contents Page
Financial Trends 126
These schedules contain trend information to help the reader understand how the
government's financial performance and well-being have changed over time.
Revenue Capacity 138
These schedules contain information to help the reader assess the government's most
significant local revenue sources, the property tax and sales tax.
Debt Capacity 146
These schedules present information to help the reader assess the affordability of the
government's current levels of outstanding debt and the government's' ability to issue
additional debt in the future.
Demographic and Economic Information 151
These schedules offer demographic and economic indicators to help the reader understand
the environment within which the government's financial activities take place.
Operating Information 154
These schedules contain service and infrastructure data to help the reader understand how
the information in the government's financial report relates to the services the government
provides and the activities it performs.
Sources:Unless otherwise noted,the information in these schedules is derived from the comprehensive annual
fmancial reports for the relevant year.
125
CITY OF PEARLAND, TEXAS
NET POSITION BY COMPONENT
Last Ten Fiscal Years
Amounts in(000's)
(Accrual Basis of Accounting)
2007 2008 2009 2010 2011
Governmental Activities
Net investment in capital assets $400,522 $410,002 $429,054 $422,643 $413,439
Restricted 10,130 10,864 10,615 18,020 16,462
Unrestricted 11,809 10,903 13,330 13,692 14,543
Total governmental activities
net position $422,461 $431,769 $452,999 $454,355 $444,444
Business-type activities
Net investment in capital assets $126,779 $138,679 $146,150 $144,244 $156,629
Restricted 24,258 16,094 11,965 17,587 5,603
Unrestricted 1,638 3,406 9,256 11,942 13,910
Total business-type activities
net position $152,675 $158,179 $167,371 $173,773 $176,142
Primary government
Investment in capital assets $527,301 $548,681 $575,204 $566,887 $570,068
Restricted 34,388 26,958 22,580 35,607 22,065
Unrestricted 13,447 14,309 22,586 25,634 28,453
Total primary government
net position $575,136 $589,948 $620,370 $628,128 $620,586
(1)Due to implementation of GASB 61, the City's component units are now considered
(2)Restated due to implementation of GASB 65 in fiscal year 2014. Fiscal years 2012 and
2013 have been restated for comparison purposes.
126
2012 (2) 2013 (1)(2) 2014 2015 2016
$353,160 $391,032 $397,346 $423,706 $439,923
• 38,933 43,413 52,209 53,883 60,640
10,117 14,696 2,477 3,800 3,185
$402,210 $449,141 $452,032 $481,389 $503,748
$156,888 $165,915 $174,955 $186,819 $187,937
9,821 9,542 14,484 13,539 15,852
12,439 16,704 15,612 12,815 13,351
$179,148 $192,161 $205,051 $213,173 $217,140
$510,048 $556,947 $572,301 $610,525 $627,860
48,754 52,955 66,693 67,422 76,492
22,556 31,400 18,089 16,615 16,536
$581,358 $641,302 $657,083 $694,562 $720,888
127
CITY OF PEARLAND,TEXAS
CHANGES IN NET POSITION
Last Ten Fiscal Years
Amounts in(000's)
(Accrual Basis of Accounting)
2007 2008 2009 2010
Expenses
Governmental activities
General Government $ 8,660 $ 11,161 $ 12,355 $ 13,439
Public Safety 14,655 17,684 22,438 24,268
Public Works 24,041 24,532 26,893 35,679
Community Services 3,113 3,336 3,290 3,323
Parks and Recreation 4,882 7,157 7,240 7,699
Economic Development
Interest on long-term debt 9,070 12,266 11,647 13,738
Total government activities expenses 64,421 76,136 83,863 98,146
Business-type activities:
Water and Sewer 21,076 22,570 25,439 27,157
Solid Waste 5,218 6,024 7,106 7,089
Total business-type activities: 26,294 28,594 32,545 34,246
Total primary government expenses $ 90,715 $104,730 $116,408 $132,392
Program Revenue
Governmental activities
Charges for services:
General Government $ $ $ 6,637 $ 6,637
Public Safety 2,788 2,959 3,524 3,296
Public Works 195 103 35 10
Community Services 5,822 5,130 4,755 4,312
Parks and Recreation 818 936 672 906
Economic Development
Operating grants and contributions
General Government 1,659 3,951 4,913 5,215
Public Safety 154 230 420 641
Public Works 456 551 375 207
Community Services 34 129 202 159
Parks and Recreation 11 115 450 424
Economic Development
Capital grants and contributions
General Government
Public Safety 503 279 98
Public Works 8,690 15,263 26,092 29,800
Parks and Recreation 261 4,653
Total governmental activities program revenues 20,627 30,131 53,007 51,705
Business-type activities:
Charges for services
Water and Sewer 17,754 21,524 26,617 24,961
Solid Waste 5,218 6,038 6,766 7,313
Operating grants and contributions
Water and Sewer 385 315 2,464 70
Capital grants and contributions
Water and Sewer 12,621 5,869 6,125 8,611
Total business-type activities program revenues 35,978 33,746 41,972 40,955
Total primary government program revenues $ 56,605 $ 63,877 $ 94,979 $ 92,660
(1)Due to implementation of GASB 61,the City's component units are now considered blended component
units versus discretely presented as in years prior to fiscal year 2013.Fiscal year 2012 has been restated for
comparison purposes.
(2)Restated due to implementation of GASB 65 in fiscal year 2014. Fiscal years 2012 and 2013 have been
restated for comparison purposes.
•
128
Page I of 2
2011 2012(2) 2013(1)(2) 2014 2015 2016
$ 15,945 $ 13,334 $ 13,358 $ 12,241 $ 17,189 $ 18,016 _
23,042 27,403 28,944 32,130 33,179 38,933
31,130 28,510 31,690 38,579 45,894 46,449
3,254 4,267 3,807 4,687 3,641 3,711
8,062 9,264 9,524 6,896 3,731 4,820
26,311 17,411 26,498 26,159 31,330
13,142 11,572 10,534 16,225 15,569 15,946
94,575 _ 120,661 115,268 137,256 145,362 159,205
29,192 29,392 31,289 32,444 34,266 37,941
7,285 7,528 8,324, 6,664 6,417 6,833
36,477 36,920 39,613 39,108 40,683 44,774
$131,052 $157,581 $154,881 $176,364 $186,045 $203,979
$ $ 7,624 $ 6,326 $ 6,637 $ 7,624 $ 8,547
3,679 4,206 7,410 2,793 4,110 4,276
18 43 3,096 322 338 320
4,632 5,855 3,264 7,375 7,771 8,520
2,027 2,080 2,209 2,290 2,412 2,218
413 414 430 1,209 13
5,488 6,045 44 440 747 2,595
407 711 603 434 294 •
675 53 1,388 7,612 4,589 11,123
366 311 108 337 216
462 542 182 474 1,586
180
10,330 18,743 52,921 29,269 36,440 24,636
100
28,084 46,726 78,145 58,413 67,336 "62,248
28,664 27,535 29,008 28,929 30,201 43,677
7,258 7,654 8,175 7,008 6,637 6,945
61 205 2,512 30
4,215 8,118 16,273 17,677 13,177 4,094
40,198 43,512 53,456 53,614 52,527 54,746
$ 68,282 $ 90,238 $131,601 $112,027 $119,863 $116,994
129
CITY OF PEARLAND,TEXAS
CHANGES IN NET POSITION
Last Ten Fiscal Years
Amounts in(000's)
(Accrual Basis of Accounting)
2007 2008 2009 2010
Net(Expense)/Revenue
Governmental activities $(43,794) $(46,005) $ (30,856) $(46,441)
Business-type activities 9,684 5,152 9,427 6,709
Total primary government net expense $(34,110) $(40,853) $ (21,429) $(39,732)
General Revenues and Other Changes in Net Assets
Governmental activities:
Taxes:
Property taxes $ 21,845 $ 24,823 $ 29,492 $ 31,140
Sales and use taxes 9,980 11,025 12,581 14,218
Franchise taxes 3,426 3,760 4,427 5,075
Investment earnings 2,991 4,943 4,572 1,376
Miscellaneous 740 1,539 2,911 6,294
Transfers 1,230 1,060 1,330 621
Total governmental activities $ 40,212 $ 47,150 $ 55,313 $ 58,724
Business-type activities:
Investment earnings $ 758 $ 2,574 $ 1,669 $ 363
Miscellaneous 12 23
Transfers (1,230) (1,060) (1,330) (621)
Total business-type activities (472) 1,514 351 (235)
Total primary government $ 39,740 $ 48,664 $ 55,664 $ 58,489
Change in Net Position
Governmental activities $ (3,582) $ 1,145 $ 24,457 $ 12,283
Business-type activities 9,212 6,666 9,778 6,474
Total primary government $ 5,630 $ 7,811 $ 34,235 $ 18,757
(1)Due to implementation of GASB 61, the City's component units are now considered blended component
units versus discretely presented as in years prior to fiscal year 2013. Fiscal year 2012 has been restated for
comparison purposes.
(2)Restated due to implementation of GASB 65 in fiscal year 2014. Fiscal years 2012 and 2013 have been
restated for comparison purposes.
130
Page 2 of 2
2011 2012 (2) 2013 (1)(2) 2014 2015 2016
$(66,491) $ (73,935) $(37,123) $(78,843) $(78,026) $(96,957)
3,721 6,592 13,843 14,506 11,844 9,972
$(62,770) $ (67,343) $(23,280) $(64,337) $(66,182) $(86,985)
$ 32,963 $ 33,451 $ 52,230 $ 54,433 $ 62,974 $ 67,644
13,578 13,983 22,969 24,942 29,970 31,293
5,426 5,605 5,670 5,999 6,971 7,228
253 157 134 155 491 729
1,028 1,854 1,554 1,701 4,149 5,957
1,186 1,475 2,269 1,607 2,828 6,464
$ 54,434 $ 56,525 $ 84,826 $ 88,837 $107,383 $119,315
$ 100 $ 116 $ 68 $ 95 $ 325 $ 293
779 9 444 682 219 166
(1,186) (1,475) (2,269) (1,607) (2,828) (6,464)
(307) (1,350) (1,757) (830) (2,284) (6,005)
$ 54,127 $ 55,175 $ 83,069 $ 88,007 $105,099 $113,310
$(12,057) $ (17,410) $ 47,703 $ 9,994 $ 29,357 $ 22,358
3,414 5,242 12,086 13,676 9,560 3,967
$ (8,643) $ (12,168) $ 59,789 $ 23,670 $ 38,917 $ 26,325
131
CITY OF PEARLAND,TEXAS
FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
Amounts in(000's)
(Modified Accrual Basis of Accounting)
2007 2008 2009 2010
General fund
Non-spendable $ 123 $ 181 $ 119 $ 146
Restricted
Assigned 581 4,698 699 117
Unassigned 12,932 8,647 11,401 12,599
Total General Fund $ 13,636 $ 13,526 $ 12,219 $ 12,862
All other governmental funds
Non-spendable $ $ $ $
Restricted
Debt service 6,552 6,835 7,246 6,705
Capital improvements 96,542 110,715 62,467 30,893
Public safety 591 583 699 612
Economic Development
Community development programs
Tourism 1,051 1,247 1,344 1,394
Parks and recreation 1,652 1,183 1,094 1,214
Capital projects-other 1,138 1,346 1,146 962
Other 114 629 85 79
Total other Governmental Funds $ 107,640 $ 122,538 $ 74,081 $ 41,859
(1)Due to implementation of GASB 61,the City's component units are now considered blended component units
versus discretely presented as in years prior to fiscal year 2013.
•
132
2011 2012 2013 (1) 2014 2015 2016
$ 130 $ 182 $ 158 $ 202 $ 293 $ 151
126
160 167 1,554 1,394 1,406 3,994
14,108 17,222 16,911 17,859 19,655 16,775
$ 14,524 $ 17,571 $ 18,623 $ 19,455 $ 21,354 $ 20,919
$ $ $ 183 $ 209 $ 173 $
5,160 4,992 5,192 5,951 5,835 8,276
23,461 13,776 14,536 17,519 22,484 47,361
541 702 715 390 394 342
20,777 23,814 24,117 32,844
1,452 1,821 2,267 2,994 3,685 4,194
1,143 968 985 168 105 131
810 797 866
87 215 638 918 1,149 1,264
$ 32,654 $ 23,271 $ 46,159 $ 51,963 $ 57,940 $ 94,411
133
CITY OF PEARLAND,TEXAS
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
Amounts in(000's)
(Modified Accrual Basis of Accounting)
2007 2008 2009 2010
Revenues
Property taxes $ 24,525 $ 29,200 $ 31,349 $ 32,856
Sales and use taxes 11,025 12,581 14,218 13,578
Franchise fees 3,760 4,427 5,075 5,426
Licenses and permits 4,030 2,992 2,079 1,807
Fines and forfeitures 2,048 2,086 2,325 2,475
Charges for services 5,250 7,512 8,885 9,328
Investment earnings 4,938 4,568 1,375 591
Intergovernmental 14,463 3,731 7,589 3,689
Other 1,815 5,638 8,980 982
Total Revenues 71,854 72,735 81,875 70,732
Expenditures
General government 6,293 7,388 8,412 8,527
Public safety 14,598 19,604 22,310 23,784
Public works 6,278 7,536 12,051 7,108
Community services 3,102 3,426 3,386 3,839
Parks and recreation 4,908 6,605 5,789 6,305
Economic development
Debt service:
Principal 3,228 3,160 5,482 6,200
Interest and other charges 10,197 12,382 12,080 13,635
Capital outlay 28,530 27,777 68,615 61,317 .
Intergovernmental 2,169 3,434 3,250 3,794
Total Expenditures 79,303 91,312 141,375 134,509
Excess of revenues over(under)expenditures (7,449) (18,577) (59,500) (63,777)
Other Financing Sources(Uses)
Transfers in 4,596 4,912 3,246 3,498
Transfers out (3,536) (3,582) (2,625) (2,312)
Debt issued 94,559 31,835 8,520 28,962
Payment to Escrow Agent
Capital leases 1,568 649 2,050
Other (40,695) 200 (54)
Total other Financing Sources(uses) 56,492 33,365 9,736 32,198
Net change in fund balances $ 49,043 $ 14,788 $ (49,764) $ (31,579)
Debt service as a percentage of noncapital
expenditures 26.4% 24.5% 24.1% 27.1%
(1)Due to implementation of GASB 61,the City's component units are now considered blended component units
versus discretely presented as in years prior to fiscal year 2013.
134
2011 2012 2013(1) 2014 2015 2016
$ 33,454 $ 34,362 $ 54,475 $ 57,378 $ 62,922 $ 67,569
13,983 15,632 24,942 27,295 29,970 31,293
5,605 5,817 5,999 6,484 6,971 7,228
1,721 2,320 2,989 4,149 4,544 5,677
2,895 3,374 3,534 3,121 3,108 2,931
11,687 11,891 12,982 13,078 14,661 15,313
156 92 154 254 433 728
2,199 3,089 4,595 2,541 3,197 15,959
1,560 2,541 7,973 4,157 7,076 5,065
73,260 79,118 117,643 118,457 132,882 151,765
10,866 7,784 7,958 8,027 10,470 11,609
23,926 25,372 26,204 29,171 32,229 36,818
6,505 5,533 7,812 8,121 10,298 13,292
3,376 4,246 3,523 3,960 3,408 4,294
7,539 7,499 7,244 7,816 5,823 6,458
17,414 25,248 25,625 31,051
8,217 9,373 15,637 15,815 23,790 19,736
13,543 12,401 15,859 16,373 16,595 15,841
25,703 9,201 22,101 15,536 24,471 31,982
3,954 3,992 4,058 4,307 4,792 4,847
103,629 85,401 127,810 134,374 157,501 175,928
(30,369) (6,283) (10,167) (15,917) (24,619) (24,163)
3,525 5,909 15,515 16,507 17,043 26,062
(2,050) (5,096) (14,583) (16,967) (15,233) (20,844)
21,637 49,805 12,060 49,560 81,258 142,701
(1,630) (54,478) (33,182) (54,303) (89,638)
1,289 1,179 1,853 574 1,918
56 3,809 331 4,784 3,157
22,826 (51) _ 14,502 22,555 32,496 60,199
$ (7,543) $ (6,334) $ 4,335 $ 6,638 $ 7,877 $ 36,036
27.9% 28.3% - 29.8% 27.0% 29.9% 24.8%
135
CITY OF PEARLAND,TEXAS
SPENDING AND GROWTH ANALYSIS
Last Ten Fiscal Years
Amounts in(000's)
(Modified Accrual Basis of Accounting)
Amounts in(000's)
Expenditures 2007 2008 2009 2010
General Gov't $ 6,363 $ 7,406 $ 8,423 $ 19,561
Public Safety 14,598 19,604 22,310 23,784
Public Works 6,278 7,536 12,051 7,108
Coummunity Servies 3,102 3,426 3,386 3,839
Parks&recreation 4,908 6,605 5,789 6,305
Economic Development 14,391 16,899 18,730 15,426
Debt Service-principal 5,183 4,265 7,517 8,525
Debt service-interest 13,483 15,688 15,704 17,096
Capital outlay 28,530 27,777 75,490 64,563
Intergovernmental 14,699 3,434 7,630 4,234
Total $ 111,535 $ 112,640 $ 177,030 $ 170,441
Distribution of Spending
General Gov't 5.7% 6.6% 4.8% 11.5%
Public Safety 13.1% 17.4% 12.6% 14.0%
Public Works 5.6% 6.7% 6.8% 4.2%
Coummunity Servies 2.8% 3.0% 1.9% 2.3%
Parks&recreation 4.4% 5.9% 3.3% 3.7%
Economic Development 12.9% 15.0% 10.6% 9.1%
Debt Service-principal 4.6% 3.8% 4.2% 5.0%
Debt service-interest 12.1% 13.9% 8.9% 10.0%
Capital outlay • 25.6% 24.7% 42.6% 37.9%
Intergovernmental 13.2% 3.0% 4.3% 2.5%
Total 100.0% 100.0% 100.0% 100.0%
Per Capita Expenditures Adjusted for CPI
POPULATION 84,500 89,000 92,600 94,100
PER CAPITA $ 1,320 $ 1,266 $ 1,912 $ 1,811
CPI INDEX(NATIONAL) 207.34 215.30 214.54 218.06
PER CAPITA ADJ TO 2016 $ 1,537 $ 1,419 $ 2,151 $ 2,005
PER CAPITA ADJ TO 2007 $ 1,320 $ 1,219 $ 1,848 $ 1,722
136
•
Average
Compounded
2011 2012 2013 2014 2015 2016 %CHG Growth Rate
$ 10,877 $ 7,797 $ 7,958 $ 8,027 $ 10,470 $ 11,609 82.4% 6.91%
23,926 25,372 26,204 29,171 32,229 36,818 152.2% 10.83%
6,505 5,533 7,812 8,121 10,298 13,292 111.7% 8.69%
3,376 4,246 3,523 3,960 3,408 4,294 38.4% 3.68%
. 7,539 7,499 7,244 7,816 5,823 6,458 31.6% 3.10%
17,391 20,397 17,414 25,248 25,625 31,051 115.8% 8.92%
10,847 12,893 15,637 15,815 23,790 19,736 280.8% 16.02%
17,154 15,534 15,859 16,373 16,595 15,841 17.5% 1.81%
25,768 9,201 22,101 15,536 24,471 31,982 12.1% 1.28%
4,127 4,158 4,058 4,307 4,792 4,847 -67.0% -11.60%
$ 127,510 $ 112,630 $ 127,810 $ 134,374 $ 157,501 $ 175,928 57.7% 5.19%
8.5% 6.9% 6.2% 6.0% 6.6% 6.6%
18.8% 22.5% 20.5% 21.7% 20.5% 20.9%
5.1% 4.9% 6.1% 6.0% 6.5% 7.6%
2.6% 3.8% 2.8% 2.9% 2.2% 2.4%
5.9% 6.7% 5.7% 5.8% 3.7% 3.7%
13.6% 18.1% 13.6% 18.8% 16.3% 17.6%
8.5% 11.4% 12.2% 11.8% 15.1% 11.2%
13.5% 13.8% 12.4% 12.2% 10.5% 9.0%
20.2% 8.2% 17.3% 11.6% 15.5% 18.2%
3.2% 3.7% 3.2% 3.2% 3.0% 2.8%
100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Average
Compounded
Growth Rate
97,200 99,800 104,100 106,900 112,300 117,100 3.69%
$ 1,312 $ 1,129 $ 1,228 $ 1,257 $ 1,403 $ 1,502 1.45%
224.94 229.59 232.96 234.75 236.70 241.40 1.70%
$ 1,408 $ 1,187 $ 1,272 $ 1,293 $ 1,403 $ 1,502 -0.25%
$ 1,209 $ 1,019 $ 1,093 $ 1,110 $ 1,229 $ 1,290 -0.25%
137
CITY OF PEARLAND, TEXAS
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE
OF TAXABLE PROPERTY
Last Ten Fiscal Years
Real Property
Fiscal Tax Personal Less Tax Exempt
Year Year Residential Commercial Property Real Property
2007 (1) 2006 3,398,952,580 1,234,444,431 378,160,330 307,538,080
2008 2007 4,136,844,130 1,463,969,653 449,453,570 384,651,183
2009 2008 4,535,133,971 1,795,132,850 521,854,047 461,051,494
2010 2009 4,673,324,896 1,762,831,286 632,160,830 484,145,515
2011 2010 4,916,409,359 1,833,483,370 527,132,210 590,247,297
2012 2011 4,929,336,548 1,897,683,176 488,098,315 592,996,676
2013 (2) 2012 5,042,965,503 1,954,587,058 612,564,952 617,274,555
2014 2013 5,530,854,515 1,966,675,342 614,461,500 627,308,465
2015 2014 6,000,588,340 2,035,398,664 670,832,220 673,524,095
2016 2015 6,687,172,478 2,200,841,575 677,182,023 677,182,023
Notes:
Assessed valuation for fiscal year 2007 does not include Brazoria County Mud#1 valuation of
(1) $241,248,630 that was annexed into the City on December 31, 2006.
Assessed valuation for fiscal year 2013 does not include Brazoria County Mud#4 valuation of
(2) $241,712,166 that was annexed into the City on December 31, 2012.
Assessed value based on adjusted tax roll at year end.
138
Assessed Value
Less Other Total as a Percent of
Exemptions and Total Taxable Direct Tax Estimated Actual Actual Taxable
Abatements Assessed Value Rate Taxable Value Value
291,197,312 $ 4,412,821,949 $ 0.6527 $ 4,412,821,949 100%
275,826,005 5,389,790,165 0.6526 5,389,790,165 100%
486,242,814 5,904,826,560 0.6526 5,904,826,560 100%
315,123,559 6,269,047,937 0.6526 6,269,047,937 100%
355,054,613 6,331,723,029 0.6651 6,331,723,029 100%
352,494,382 6,369,626,981 0.6851 6,369,626,981 100%
454,866,920 6,537,976,038 0.7051 6,537,976,038 100%
487,709,374 6,996,973,518 0.7051 6,996,973,518 100%
452,738,140 7,580,556,989 0.7121 7,580,556,989 100%
423,238,764 8,464,775,289 0.7053 8,464,775,289 100%
139
CITY OF PEARLAND,TEXAS
DIRECT AND OVERLAPPING PROPERTY TAX RATES
Last Ten Fiscal Years
(rate per$100 of assessed value)
City Direct Rates Overlapping Rates a
Pearland Pasadena Alvin
Independent Independent Independent Alvin Fort Port of
Fiscal M&0 I&S Total School School School Comm Brazoria Bend Harris Houston
Year Rate Rate Direct District District District College County County County Authority
2007 $ 0.299 $ 0.354 $ 0.653 $ 1.662 $ 1.350 $ 1.546 $ 0.220 $ 0.382 $ 0.517 $ 0.402 $ 0.013
2008 0.250 0.402 0.653 1.427 1.350 1.328 0.210 0.311 0.517 0.392 0.014
2009 0.220 0.433 0.653 1.419 1.350 1.328 0.200 0.330 0.500 0.391 0.018
2010 0.220 0.433 0.653 1.419 1.350 1.304 0.200 0.366 0.500 0.392 0.016
2011 0.215 0.450 0.665 1.419 1.350 1.304 0.200 0.403 0.500 0.388 0.021
2012 0.215 0.470 0.685 1.419 1.350 1.344 0.199 0.413 0.500 0.391 0.019
2013 0.215 0.490 0.705 1.419 1.350 1.329 0.200 0.426 0.500 0.400 0.020
2014 0.215 0.490 0.705 1.416 1.350 1.329 0.194 0.492 0.500 0.415 0.017
2015 0.222 0.490 0.712 1.416 1.350 1.417 0.204 0.499 0.495 0.417 0.015
2016 0.222 0.483 0.705 1.416 1.350 1.417 0.204 0.486 0.486 0.419 0.013
Source:Brazoria County,Harris County,and Fort Bend County Appraisal Districts.
a Overlapping rates are those of local and county governments that apply to property owners within the City of Pearland.Not all
overlapping rates apply to all Pearland property owners;for example,although the county property tax rates apply to all.
140
Harris Harris Harris Brazoria/
County County County Ft Bend
Flood Hospital Dept of MUD MUD MUD MUD MUD MUD MUD MUD MUD
Control District Education No.1 No. 17 No.18 No.19 No.23 No.26 No.28 No.34 No.35
$ 0.032 $0.192 $ 0.006 $ 0.850 $0.750 $0.610 $0.780 $ 0.850 $ 0.770 $ 0.820 $ 0.850 $
0.031 0.192 0.006 0.850 0.730 0.590 0.680 0.850 0.710 0.820 0.850 0.850
0.031 0.192 0.006 0.850 0.630 0.570 0.660 0.820 0.710 0.820 0.850 0.890
0.029 0.192 0.060 0.850 0.600 0.560 0.630 0.800 0.710 0.820 0.850 1.020
0.029 0.192 0.007 0.850 0.547 0.550 0.620 0.770 0.710 0.820 0.850 1.020
0.028 0.192 0.007 0.850 0.547 0.545 0.600 0.630 0.690 0.820 0.850 1.020
0.028 0.182 0.007 0.850 0.547 0.530 0.580 0.610 0.690 0.820 0.850 1.020
0.028 0.170 0.006 0.850 0.544 0.510 0.550 0.600 0.690 0.820 0.850 1.020
0.027 0.170 0.006 0.850 0.520 0.470 0.510 0.580 0.690 0.820 0.850 1.020
0.027 0.170 0.005 0.848 0.460 0.390 0.450 0.540 0.690 0.820 0.820 1.020
141
CITY OF PEARLAND,TEXAS
PROPERTY TAXLEVIESAND COLLECTIONS
Last Ten Fiscal Years
Fiscal Collected within the
Year Taxes Levied Fiscal Year of the Levy Collections Total Collections to Date
Ended for the Percentage in Subsequent Percentage
Sept 30, Fiscal Year Amount of Levy Years Amount of Levy
2007 $ 28,819,229 $ 28,235,276 97.97% $ 559,159 $ 28,794,435 99.9%
2008 35,035,569 34,461,652 98.36% 568,666 35,030,318 100.0%
2009 38,368,354 37,820,603 98.57% 525,250 38,345,853 99.9%
2010 41,081,407 40,590,543 98.81% 439,703 41,030,246 99.9%
2011 41,968,046 41,594,389 99.11% 325,164 41,919,553 99.9%
2012 43,441,792 43,110,373 99.24% 303,957 43,414,330 99.9%
2013 45,850,625 45,509,522 99.26% 285,847 45,795,369 99.9%
2014 49,096,473 48,802,720 99.40% 207,780 49,010,500 99.8%
2015 53,463,919 53,175,174 99.46% 151,167 53,326,341 99.7%
2016 58,829,331 58,545,664 99.52% - 58,545,664 99.5%
Source:Brazoria County Tax Office
Note:Taxes levied based on adjusted tax roll.
•
142
CITY OF PEARLAND,TEXAS
PRINCIPAL PROPERTY TAX PAYERS
Current Year and Nine Years Ago
2016* 2007
Percentage Percentage
of Total City of Total Cit3
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
Weatherford U.S., Inc. $ 60,419,650 1 0.67% $ 33,607,360 1 0.76%
Pearland Town Center LP 81,224,456 2 0.90%
HCA Healthcare Corp 69,698,780 3 0.77% 14,882,164 9 0.34%
Centerpoint Energy, Inc. 59,511,450 4 0.66% 23,001,660 3 0.52%
Amreit SPF Shadow Creek, LP 54,172,342 5 0.60%
Mar Shadow Creek LP 53,984,940 6 0.60%
MHI Compressor 40,124,109 7 0.44%
12400 Shadow Creek Parkway LLC 35,701,460 8 0.39%
Discovery Shadow Creek 34,401,370 9 0.38%
Shadow Kirby LTD Partnership 33,000,000 10 0.36%
Waterford SCR LP 19,088,150 6 0.43%
Walmart Stores, Inc. 25,434,850 2 0.58%
Pearland Investments LTD 19,248,280 5 0.44%
Pearland Lifestyle Center 15,234,520 7 0.35%
HD Development Properties,LP 13,485,360 10 0.31%
Shadow Creek Ranch Dev Co 21,996,470 4 0.50%
Turbocare,Inc 15,159,150 8 0.34%
Total $ 522,238,557 5.78% $ 201,137,964 4.56%
Source:Brazoria County Appraisal District •
*Tax Year 2016
•
143
CITY OF PEARLAND,TEXAS
TAXABLE SALES BY CATEGORY
Last Ten Calendar Years
(in thousands of dollars)
Calendar Year
2007 c 2008 2009 2010
Retail Trade $ 536,352 $ 667,470 $ 699,338 $ 673,714
Accommodations &Food Services 107,850 127,994 146,598 155,345
Real Estate/Rental/Leasing 44,560 52,276 38,924 46,811
Manufacturing 50,134 47,447 31,243 39,582
Wholesale Trade 28,782 32,999 25,954 30,730
Other Services(Except Public Admin) 20,794 23,764 23,670 25,114
Information 10,086 12,567 14,413 15,672
Construction 16,232 17,496 14,372 15,537
Arts, Entertainment&Recreation 8,789 9,751 9,909 11,315
Mining, Quarrying, Oil and Gas 9,280 10,520 3,355 3,246
Admin/Support/Waste Mgmt/Remediation 9,209 12,656 11,670 10,650
Professional/Scientific/Technical 4,103 5,218 5,923 6,277
Health Care/Social Assistance 63 37 52 184
Finance, Insurance 1,038 1,469 1,811 1,404
Agriculture, Forestry, Fishing 473 675 566 180
Transportation/Warehousing 169 138 161 282
Educational Services 110 212 144 207
Utilities 3 6 6 3
Management of Companies/Enterprises 1,161 2,594
Other
Total $ 849,188 $1,025,289 $1,028,107 $1,036,253
City direct sales tax rate b 1.00% 1.00% 1.00% 1.00%
Source: State Comptroller's Office.
a 2015 taxable sales thru 2nd quarter of 2015.
b The City direct sales tax rate includes the City only and not the Pearland Economic
Development Corp. (4B).
c Categories changed in 2007. Re-categorized data.
144
Calendar Year
2011 2012 2013 2014 2015 2016a
$ 697,419 $ 764,460 $ 829,666 $ 871,959 $ 961,493 $ 472,761
172,126 198,439 216,155 240,693 272,540 148,380
48,059 61,690 56,079 61,392 48,024 17,497
49,474 48,213 34,598 51,194 40,805 22,941
33,163 33,566 34,358 42,762 41,491 23,017
29,557 30,669 34,175 38,541 40,370 19,994
16,896 19,194 24,387 29,602 33,614 16,494
17,558 23,181 24,370 26,465 32,503 12,212
11,511 12,710 13,570 14,692 15,542 7,853
3,316 3,726 12,893 14,520 7,285 3,230
11,004 12,696 13,778 12,989 12,826 6,874
7,072 9,037 11,317 10,519 11,294 6,167
252 351 1,057 3,133 5,007 1,141
1,261 1,347 1,246 1,483 2,226 1,129
306 468 772 728 1,609 637
418 425 318 406 284 147
314 429 374 350 393 159
187 3 7 7
$1,099,893 $1,220,603 $1,309,121 $ 1,421,435 $ 1,527,307 $ 760,633
1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
145
CITY OF PEARLAND,TEXAS
OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years
(dollars in thousands,except per capita)
Governmental Activities _ Business-Type Activities
General Certificates Capital Permanent Capital
Fiscal Obligation of Obligation Revenue Lease Revenue Improvement Lease
Year Bonds Bonds Bonds Obligations Bonds Bonds Obligations
2007 $ 164,810 $ 66,220 $ $ 1,538 $ 79,180 $ 13,915 $
2008 184,985 74,980 1,187 92,900 13,140
2009 180,765 82,505 1,479 104,435 12,160 235
2010 193,785 92,380 3,237 116,440 10,540 345
2011 207,105 91,150 4,032 113,270 9,730 421
2012 224,170 65,425 3,629 3,407 109,305 15,130 342
2013* 236,199 64,690 75,125 3,681 105,690 14,020 253
2014 246,791 56,505 80,186 4,344 102,517 12,865 169
2015 261,998 50,030 77,012 3,629 108,099 11,305 82
2016 262,865 50,070 91,370 4,229 173,570 9,775 375
Note:Details regarding the city's outstanding debt can be found in the notes to the financial statements.
*Due to implementation of GASB 61 in fiscal year 2013, the City's component units are now considered blended
component units versus discretely as in years prior to fiscal year 2013. As such, the outstanding debt for the components
units have been added;however, the City, or primary government is not legally responsible for the payment of its debt.
146
Excluding
Total Percentage Total Component
Primary of Personal Per Units
Government Income Capita Per Capita
$ 325,663 12.4% $ 3,854 $
367,192 12.4% 4,126
381,579 13.0% 4,121
416,727 13.5% 4,429
425,708 14.3% 4,380
421,408 13.1% 4,223
499,658 14.1% 4,800 4,019
503,377 13.2% 4,709 3,859
512,155 12.6% 4,561 3,875
592,254 12.8% 5,058 4,277
147
CITY OF PEARLAND,TEXAS
RATIO OF NET GENERAL BONDED DEBT TO ASSESSED
VALUE AND NET BONDED DEBT PER CAPITA
Last Ten Fiscal Years
(dollars in thousands,except per capita)
General Less Debt Ratio of Net Percentage
Fiscal Tax Obligation Service Net Bonded Bonded Debt to of Personal Per Capita
Year Year Bonds Funds Debt Assessed Value Income a
a
2007 2006 $ 244,945 $ 6,552 $ 238,393 5.4% 9.1% $ 2,821
2008 2007 273,105 6,552 266,553 4.9% 9.0% 2,995
2009 2008 275,430 7,247 268,183 4.5% 9.1% 2,896
2010 2009 296,705 6,706 289,999 4.6% 9.4% 3,082
2011 2010 307,985 5,160 302,825 4.8% 10.2% 3,115
2012 2011 304,725 4,992 299,733 4.7% 9.3% 3,003
2013 2012 314,909 4,643 310,266 4.7% 8.7% 2,980
2014 2013 316,161 4,536 311,625 4.5% 8.2% 2,915
2015 2014 323,333 5,034 318,299 4.2% 7.8% 2,834
2016 2015 322,710 8,276 314,434 3.7% 6.8% 2,685
Note:Details regarding the city's outstanding debt can be found in the notes to the financial statements.
a Population and personal income data can be found in demographic and economic statistics table.
148
CITY OF PEARLAND, TEXAS
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
September 30,2016
Debt as of
September 30, Overlapping
Taxing Jurisdiction 2016 Percent Amount
Alvin Community College District $12,255,000 27.15% $3,327,233
Alvin ISD 647,785,000 32.13% 208,133,321
Brazoria County 78,930,000 22.15% 17,482,995
Brazoria County MUD No.6 17,830,000 0.27% 48,141
Brazoria County MUD No. 17 24,565,000 100.00% 24,565,000
Brazoria County MUD No. 18 24,905,000 100.00% 24,905,000
Brazoria County MUD No. 19 30,900,000 100.00% 30,900,000
Brazoria County MUD No.23 14,995,000 100.00% 14,995,000
Brazoria County MUD No.26 37,070,000 100.00% 37,070,000
Brazoria County MUD No.28 35,765,000 100.00% 35,765,000
Brazoria County MUD No.34 36,705,000 100.00% 36,705,000
Brazoria County MUD No.35 9,130,000 100.00% 9,130,000
Brazoria-Fort Bend County MUD No. 1 75,605,000 60.32% 45,604,936
Fort Bend County 523,195,000 0.52% 2,720,614
Harris County(a) 2,421,235,464 0.15% 3,631,853
Harris County Dept.of Education 7,000,000 0.15% 10,500
Harris County Flood Control District 83,075,000 0.15% 124,613
Harris County Hospital District 62,815,000 0.15% 94,223
Harris-Brazoria Counties 3,500,000 100.00% 3,500,000
Lower Kirby Pearland Man 10,025,000 100.00% 10,025,000
Pasadena ISD 704,940,000 0.15% 1,057,410
PearlandlSD 290,618,597 75.74% 220,114,525
Port of Houston Authority 674,269,397 0.15% 1,011,404
Total estimated Overlapping 730,921,767
The City $404,305,000 100.00% 404,305,000
Total Direct and Estimated Overlapping Debt $1,135,226,767
Population 117,100
Per Capita Debt-Direct and Overlapping Debt $ 9,695
Source: Individual jurisdictions and/or Texas Municipal Reports.
149
•
CITY OF PEARLAND,TEXAS
PLEDGED REVENUE COVERAGE
Amounts in(000's)
Last Ten Fiscal Years
Water&Sewer Revenue Bonds
Net
Less: Revenue Debt Service
Fiscal Gross Operating Available for
Year Revenues Expenses Debt Service Principal Interest Total Coverage
2007 $ 20,713 $ 12,151 $ 8,562 $ 1,125 $ 2,915 $ 4,040 2.12
2008 23,507 14,827 8,680 1,230 4,011 5,241 1.66
2009 26,980 12,877 14,103 1,595 4,648 6,243 2.26
2010 25,061 13,585 11,476 2,575 4,848 7,423 1.55
2011 28,664 15,529 13,135 3,170 5,155 8,325 1.58
2012 27,969 15,946 12,023 3,305 5,016 8,321 1.44
2013 29,607 17,423 12,184 3,615 4,724 8,339 1.46
2014 29,341 17,707 12,184 3,765 4,584 8,349 1.46
2015 30,744 18,767 11,977 3,920 4,622 8,542 1.40
2016 44,163 21,167 22,995 7,630 4,918 12,548 1.83
Note:Details regarding the City's outstanding debt can be found in the notes to the fmancial statements. Operating expenses
do not include interest,depreciation,or amortization expenses.Debt service excludes Permanent Improvement Bonds paid
with system revenues,as those bonds do not require bond coverage.
150
CITY OF PEARLAND,TEXAS
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
Education
Personal Per Capita Level in School
Fiscal Population Income Personal Median Years of Enrollment Unemployment
Year (A) (in$000's) Income(B) Age(B) Schooling (C) Rate(D)
2007 84,500 $ 2,631,837 $ 31,146 34.9 14.3 17,733 3.6%
2008 89,000 2,963,255 33,295 35.8 14.3 18,439 . 3.8%
2009 92,600 2,941,717 31,768 34.5 14.2 20,056 6.5%
2010 94,100 3,076,788 32,697 33.4 14.2 21,269 6.9%
2011 97,200 2,974,785 30,605 33.3 14.2 20,931 6.9%
2012 99,800 3,213,184 32,196 34.8 14.2 21,721 5.6%
2013 104,100 3,555,431 34,154 34.4 14.2 23,771 5.0%
2014 106,900 3,822,958 35,762 34.6 14.2 23,075 4.3%
2015 112,300 4,063,014 36,180 34.6 14.2 23,241 3.3%
2016 117,100 4,637,394 39,602 33.9 14.2 24,096 3.8%
(A)Estimated
(B) Pearland Economic Development Corporation
(C)Texas Education Agency
(D) Bureau of Labor Statistics
151
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152
CITY OF PEARLAND,TEXAS
PRINCIPAL EMPLOYERS
Current Year and Nine Years Ago
2016 2007
Percentage Percentage
of Total City of Total City
Employer Employees Rank Employment Employees Rank Employment
Pearland ISD 2,660 1 4.72% 2,090 1 8.33%
Kelsey Seybold 873 2 1.55%
City of Pearland 781 3 1.39% 447 3 1.78%
Alvin ISD 450 4 0.80%
Memorial Hermann 370 5 0.66%
Merit Meical 330 6 0.59%
Kemlon 300 7 0.53% 325 5 1.30%
Pearland Medical Center 300 8 0.53%
Dover Energy 205 9 0.36%
TurboCare 180 10 0.32% 360 4 1.44%
Wal-Mart 800 2 3.19%
Home Depot 225 6 0.90%
Weatherford 191 7 0.76%
Profax 175 8 0.70%
Packaging Service Co. 155 9 0.62%
Super Target 150 10 0.60%
Total 6,449 11.46% 4,918 19.61%
Sources:
Pearland Economic Development Corp.
153
CITY OF PEARLAND,TEXAS
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
Last Ten Fiscal Years
2007 2008 2009 2010 2011 2012 2013
Function/Program
Governmental Activities:
General Government 51 55 55 57 57 56 44
Public Safety 205 242 253 264 276 286 295
Public Works 47 45 47 47 45 31 57
Community Services 50 51 52 47 45 56 51
Parks and Recreation 59 68 72 99 105 109 101
Business Type Activities:
Water&Sewer 78 77 82 82 87 90 99
Component Unit:
Economic Development 4 5 5 6 5 5 5
Total 494 543 564 601 619 633 652
Source:City Budget
154
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CITY OF PEARLAND,TEXAS
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Fiscal Year
2007 2008 2009 2010 2011 2012
Function/Program
GENERAL GOVERNMENT
Finance
Number of purchase orders 3,475 3,552 3,264 2,913 2,679 2,415
Number of budget transfers 194 398 406 470 427 429
Number of invoices paid 22,279 23,434 23,259 21,632 21,000 20,768
Average number of employees paid per month 1,026 1,185 1,230 1,220 1,438 1,481
Human Resources
Number of hires 97 109 90 91 131 112
Number of applications received 3,074 2,495 3,137 3,880 3,299 4,936
Legal
Number of resolutions and ordinances prepared 269 293 266 229 205 220
Information Technology
Average monthly service requests 486 616 649 734 815 832
Number of PC's supported 354 386 394 429 439 448
PUBLIC SAFETY
Police
Number of police calls resulting in dispatch 32,747 34,865 37,440 35,676 39,815 42,318
Total police arrests made 5,053 4,424 5,188 5,986 6,218 6,525
Dispatched calls per patrol officer 544 592 576 513 606 625
Commercial vehicles equipment violations 980 860 711 672 852 900
UCR Part I cases assigned(I) 371 349 629 2,003 3,304 1,836
Fire
Total number of arson incidents 21 9 8 5 2 2
Fires investigated 96 28 33 22 25 18
Total annual inspections 2,333 2,677 2,374 1,752 1,380 1,537
Total calls for service 6,574 8,244 8,843 8,888 9,676 10,494
Patients treated 4,983 5,529 5,804 5,619 6,121 6,537
PUBLIC WORKS
Fleet Maintenance
Fleet maintenance jobs completed 4,686 4,153 3,063 2,394 3,410 3,581
Preventative maintenance performed 1,889 1,756 1,998 1,741 747 682
Other Public Works
Fuel issued(gallons) 318,587 343,865 313,596 354,422 361,464 377,754
Street sweeping(miles) 583 2,324 2,561 2,239 1,299 1,079
Street signs maintained/replaced 1,404 1,288 2,864 2,049 1,588 1,090
Total work orders completed 19,961 18,723 20,213 18,632 16,834 17,803
156
page 1 of 2
Fiscal Year
2013 2014 2015 2016
2,671 2,640 2,377 2,159
465 548 489 362
23,512 21,486 22,212 26,675
1,527 1,548 1,523 1,536
94 98 131 199
7,642 8,507 9,132 10,420
254 243 271 279
843 838 854 871
454 575 649 680
47,200 45,500 49,750 33,050
7,642 7,081 • 6,115 5,100
659 550 679 780
810 598 614 391
2,094 1,900 2,417 2,980
6 7 1 7
16 25 20 27
1,958 1,644 1,640 1,244
10,789 15,048 17,407 9,904
6,537 6,936 7,180 6,117
3,817 3,860 3,887 1,452
611 610 437 750
350,186 353,890 332,745 265,669
1,155 871 • 648 1,160 •
884 993 1,477 1,370
18,346 21,212 25,873 31,163
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CITY OF PEARLAND,TEXAS
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Nine Fiscal Yews
Fiscal Year
2007 2008 2009 2010 2011 2012
Function/Program(continued)
PARKS AND RECREATION
All Parks and recreation
ROW maintained-acres 385 210 228 245 255 251
Trees maintained 4,280 5,000 5,004 5,800 6,327 6,157
Acres of city property mowed 439 470 851 1,301 1,331 1,380
Total number of parkwork orders received 361 316 275 252 249 230
Parkland-acres(2) 175 180 138 139 139 138
Total number of special events held 25 25 25 24 21 22
Total number of tournaments held 25 9 6 9 11 2
Number of recreation classes offered(3) 1,222 1,083 855 307 459 486
Average monthly attendance(all locations)(4) 7,988 7,607 3,623 11,823 16,116 18,378
COMMUNITY SERVICES
Animal Control
Number of animals at shelter 3,068 2,947 2,868 2,532 2,685 2,220
Total number of calls for service 6,099 4,296 3,529 4,206 4,346 4,326
Inspection Services
Total building inspections 31,004 34,773 24,834 21,753 19,244 22,416
Total code violation cases 3,962 3,629 4,274 3,433 2,860 1,952
Total permits issued 13,769 9,878 9,249 7,874 7,869 8,696
Number of plans reviewed 3,055 1,309 925 969 917 1,050
Municipal Court
Number of trials 2,305 1,616 1,391 402 688 1,116
Number of charges 20,481 19,666 24,400 24,657 26,369 30,187
Warrants cleared 3,596 6,402 7,374 8,692 8,204 10,080
WATER&SEWER
Distribution and Collection
Fire hydrant maintenance and inspections(51 537 740 451 402 395 887
Backed up sewer repairs 330 393 270 325 310 275
Water mains repaired 108 160 168 82 410 283
Water Production
Water produced-wells
(in millions of gallons) 1,597 2,128 2,574 3,065 3,869 2,916
Surface Water Purchased
(in millions of gallons) 1,121 1,147 1,146 634 968 1,321
Billing&Collections
Annual meter reads 285,930 325,471 340,281 344,618 364,424 370,755
Number of bills 293,833 318,160 325,201 336,668 350,871 359,716
Wastewater Treatment
Wastewater treated
(in millions of gallons) 2,305 2,096 2,106 2,361 1,943 2,364
Sources:Various city departments.
Information not presented was not available at time of publication.
IUCR method of reporting was terminated after 2009. Effective 2010,Incident Based Reporting
(IBR)is used.
3Prior to 2009,Parkland acres included medians and Wastewater Treatment Plants. After 2009,
reported under total acres of city property maintained.
•
3Prior to 2010,individual music classes were included in the total recreation classes held.
Program was cancelled.
4In FY 2010,a new facility,Recreation Center/Natatorium,opened.
5In Water&Sewer,Distribution and Collection fire hydrant maintenance and inspections is
contracted out.During FY06,the contractor's services were disrupted by a storm.
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page 2 of 2
Fiscal Year
2013 2014 2015 2016
251 251 550 459
6,312 6,313 6,430 7,922
1,035 1,035 1,116 632
140 180 147 190
138 138 138 337
22 20 19 16
1 3 - 26
281 272 306 384
18,980 21,366 14,371 19,636
2,375 2,176 2,126 2,100
5,236 6,114 5,509 5,312
26,274 28,434 36,497 37,206
2,244 2,140 4,596 -
10,630 13,972 18,186 14,612
939 1,185 1,584 1,349
885 839 856 443
27,439 23,182 19,223 17,611
10,328 9,050 7,476 7,525
1,399 837 612 854
286 334 305 497
380 111 189 120
2,859 2,470 1,933 2,190
1,816 2,133 2,276 2,517
403,220 414,499 428,265 445,154
387,997 388,338 400,662 417,312
2,530 2,493 3,067 3,367
159
CITY OF PEARLAND,TEXAS
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Fiscal Year
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Function/Program
PUBLIC SAFETY
Police
Police stations I I 1 1 1 1 1 1 1 1
Police vehicles 117 126 130 138 142 155 157 161 143 186
Fire
Fire stations 4 4 4 4 5 6 6 6 6 6
Fire vehicles 16 17 17 17 22 23 26 26 26 42
EMS
EMS ambulances 5 6 8 8 8 8 9 9 7 9
PUBLIC WORKS
Other public works
Streets(miles)* 758 773 807 807 806 806 839 844 842 936
Vehicle inventory** 405 360 333 355 363 385 374 375 372 451
Traffic signals 57 67 71 80 62 74 81 81 73 87
PARKS AND RECREATION
Parks and recreation
Developed acreage*** 175 180 138 139 139 138 138 138 168 334
Pools 1 1 1 3 3 3 3 3 3 3
Outdoor basketball courts 10 10 10 10 10 6 6 6 6 6
Soccer fields 12 12 12 12 12 12 12 12 12 18
Activity buildings 3 3 3 4 4 3 3 3 3 3
Baseball/softball fields 4 4 4 4 4 4 4 4 4 6
WATER AND SEWER
Water Production
Water wells 10 11 11 11 11 11 10 10 10 10
Pumping stations 2 2 2 2 2 3 3 3 3 3
Ground storage tanks 15 15 15 15 15 15 15 15 15 15
Elevated towers 5 5 5 6 6 6 6 6 6 6
Wastewater
Treatment plants 5 5 5 5 5 5 5 5 5 5
Lift stations 78 76 78 78 80 80 75 76 73 74
Distribution and Collection
Water mains(miles) 395 410 420 433 443 448 469 488 509 537
Sanitary sewers(miles) 353 360 370 378 380 382 400 415 433 440
Sources:Various city departments.
Note:No capital asset indicators are available for the general government and community services functions.
Information not presented was not available at time of publication.
*Inside city limits. Prior to FY07,street miles were measured visually. Beginning FY07,a GIS system was used to measure street miles.
Although new streets were added in FY 2011,an audit of the database resulted in the elimination of some street miles previously reported.
**Decrease in inventory reflects surplus of vehicles auctioned off.Increases reflect new purchases,which may offset with those sold.
Vehicle inventory includes public safety revenues.
***Prior to 2009,Parkland acres included medians and Wastewater Treatment Plants.
160